FRI - ETF AI Analysis

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First Trust S&P REIT Index Fund (FRI)

Rating:68Neutral

Price Target:―

The First Trust S&P REIT Index Fund (FRI) has a solid overall rating, reflecting its strong holdings in key real estate investment trusts (REITs). Prologis (PLD), one of its top holdings, contributes positively with strong financial performance and a favorable outlook in the industrial REIT sector. Similarly, Welltower (WELL) adds strength through its strategic growth in senior housing and stable momentum. However, holdings like Ventas (VTR) and Digital Realty (DLR) face challenges such as valuation concerns and rising costs, which may have slightly weighed on the fund's overall rating. A notable risk is the fund's concentration in the REIT sector, which could make it sensitive to real estate market fluctuations.

Positive Factors

Strong Top Holdings

Several major holdings, like Welltower and Prologis, have delivered strong year-to-date performance, supporting the ETF's overall gains.

Focused Sector Exposure

The ETF is heavily concentrated in the real estate sector, which can benefit from stable demand and long-term growth trends.

Reasonable Expense Ratio

The fund's expense ratio is relatively low compared to many actively managed ETFs, helping investors retain more of their returns.

Negative Factors

Over-Concentration in Real Estate

With nearly all assets in the real estate sector, the ETF is highly exposed to risks specific to this industry, such as interest rate sensitivity.

Weak Performance from Key Holdings

Some top holdings, like Equinix and Digital Realty, have underperformed year-to-date, which could drag on overall returns.

Limited Geographic Diversification

The ETF is almost entirely focused on U.S. companies, leaving investors vulnerable to domestic economic risks.

FRI vs. SPDR S&P 500 ETF (SPY)

AUM149.25M

RegionNorth America

Expense Ratio0.49%

Beta0.54

IssuerFirst Trust

Inception DateMay 08, 2007

Dividend Yield3%

Asset ClassEquity

Index TrackedS&P United States REIT

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume20,108

30 Day Avg. Volume30,978

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

30.90

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering136

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FRI Summary

The First Trust S&P REIT Index Fund (FRI) is an ETF that focuses on Real Estate Investment Trusts (REITs), which are companies owning and managing properties like offices, warehouses, and apartments. It follows the S&P United States REIT Index, giving investors exposure to top real estate companies such as Prologis and Welltower. This ETF is appealing for those seeking income through regular dividends and diversification into the real estate sector. However, new investors should be aware that the fund’s performance is closely tied to the real estate market, which can be affected by economic conditions and interest rate changes.

How much will it cost me?The First Trust S&P REIT Index Fund (FRI) has an expense ratio of 0.49%, meaning you’ll pay $4.90 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is a sector-focused fund that tracks a specialized index, requiring more management compared to broad-market passive funds.

What would affect this ETF?The First Trust S&P REIT Index Fund (FRI) could benefit from stable or declining interest rates, as lower borrowing costs often support real estate investments and REIT profitability. Additionally, strong demand for commercial and industrial properties in the U.S. may drive growth for top holdings like Prologis and Equinix. However, rising interest rates or economic downturns could negatively impact property values and rental income, while regulatory changes in the real estate sector might pose challenges for REITs.

FRI Top 10 Holdings

The First Trust S&P REIT Index Fund (FRI) leans heavily into the U.S. real estate sector, with a strong focus on REITs. Welltower and Ventas are rising stars, benefiting from strategic moves in senior housing and steady demand, helping to buoy the fund’s performance. Prologis remains steady, supported by robust leasing activity, while Simon Property adds stability with its reliable cash flow and dividends. However, laggards like Equinix and Public Storage are dragging the fund, facing bearish momentum and valuation concerns. Overall, the fund’s concentrated exposure to real estate provides income potential but leaves it vulnerable to sector-specific headwinds.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
WELL	Welltower	9.58%	$14.25M	$127.66B	49.24%	77 Outperform
PLD	Prologis	9.18%	$13.66M	$120.99B	23.14%	76 Outperform
EQIX	Equinix	5.57%	$8.29M	$74.48B	-18.20%	73 Outperform
SPG	Simon Property	4.79%	$7.12M	$60.37B	7.76%	70 Outperform
O	Realty Income	4.41%	$6.55M	$51.82B	6.70%	70 Outperform
DLR	Digital Realty	4.12%	$6.13M	$51.52B	-16.00%	69 Neutral
	―	3.67%	$5.46M	―	―	―
PSA	Public Storage	3.48%	$5.18M	$45.47B	-12.89%	73 Outperform
VTR	Ventas	3.16%	$4.70M	$38.07B	34.62%	68 Neutral
VICI	VICI Properties	2.52%	$3.74M	$29.61B	-3.79%	73 Outperform

FRI Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

27.50

Negative

100DMA

27.32

Negative

200DMA

26.85

Positive

Market Momentum

MACD

-0.07

Positive

RSI

43.37

Neutral

STOCH

10.04

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FRI, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 27.46, equal to the 50-day MA of 27.50, and equal to the 200-day MA of 26.85, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 43.37 is Neutral, neither overbought nor oversold. The STOCH value of 10.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FRI.

FRI Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FRI	―	―	$149.25M	0.49%	―
BBRE	―	―	$960.84M	0.11%	―
REZ	―	―	$777.19M	0.48%	―
JPRE	―	―	$458.69M	0.50%	―
KBWY	―	―	$252.57M	0.35%	―
IYRI	―	―	$167.95M	0.68%	―

Performance Comparison

FRI

First Trust S&P REIT Index Fund

27.16

0.73

2.76%

BBRE

JPMorgan BetaBuilders MSCI U.S. REIT ETF

―

REZ

iShares Residential and Multisector Real Estate ETF

―

JPRE

JPMorgan Realty Income ETF

―

KBWY

Invesco KBW Premium Yield Equity REIT ETF

―

IYRI

NEOS Real Estate High Income ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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