First Trust S&P REIT Index Fund

First Trust S&P REIT Index Fund (FRI) is an exchange-traded fund that tracks the S&P United States REIT Index. REITs, or real estate investment trusts, are companies that own and manage income-producing property. FRI charges 0.50% a year, the highest of the nine REIT funds in our comparison, several of which charge under 0.10%. It is also the smallest, with about $180 million in assets as of June 30, 2026.

• Over the year to Oct 27, 2026, FRI returned +8.3%, 3rd of 9 among similar funds.
• Its 5-year annualized return was +2.8% and its 10-year +6.0%.
• In the 2020 COVID crash it fell 44.2% and regained its old high 12.9 months after the low.
• Its worst full calendar year was 2008 (-39.2%); its best was 2021 (+42.5%).
• The deepest fall in its price history was 72% (May 30, 2007 to Mar 6, 2009), recovered by Jul 2, 2012.

As of Jun 30, 2026, the fund held 119 securities; the ten largest made up 50.45% of assets, and 3.88% sat in cash and money-market holdings.

By sector

• Over the three months to Jun 30, 2026, investors added a net $7.6M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +8.62%, -0.06%, +3.17%.

FRI aims to match the price and yield of the S&P United States REIT Index, before fees. S&P Dow Jones Indices builds and maintains that index. The fund normally invests at least 90% of its net assets in the index's securities and copies the index rather than picking stocks. The index starts from the wider S&P Global Property Index and keeps only publicly traded REITs based in the United States that meet its eligibility rules. It leaves out timber REITs, mortgage REITs, tower REITs and mortgage-backed REITs. As of March 31, 2026, the index held 131 securities.

Holdings are weighted by float-adjusted market capitalization. That means the market value of shares actually available to trade, so the largest REITs carry the most weight. As of June 30, 2026, Welltower made up 11.7% of the fund and Prologis 9.3%. Simon Property Group, Equinix, Digital Realty and Realty Income came next at roughly 4% to 5% each. The 10 largest positions made up about 50% of assets. S&P rebalances the index every quarter, and the fund makes matching trades soon after. Portfolio turnover was 6%.

Structurally, FRI is a plain stock fund. It uses no leverage, and it held no derivatives as of June 30, 2026, when cash was about 3.9% of assets. Because it owns only REITs, it is concentrated in a single industry. S&P can also change the index rules or constituents when it sees a need.

• FRI charges 0.5% a year, versus an average of 0.16% for the similar funds below (9th of 9, cheapest first).
• Of that, 0.3% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.01% waiver from the adviser, which may end.

FRI adds a dedicated slice of US commercial real estate to a portfolio built mainly on broad stock and bond funds, but it has fallen sharply alongside stocks in past crises.

FRI could add direct exposure to property owners such as Welltower, Prologis and Simon Property Group. The trade-off is deep drops. It lost 70.8% in the 2008 financial crisis and did not recover until April 2012. It fell 44.2% in the 2020 COVID crash, then 30.9% in the 2022 bear market, which took until November 2024 to make up. Its worst calendar year was 2008, at -39.2%. Anyone who needs to sell shares or draw income during a slump like those could be selling far below earlier highs. Over the 12 months to October 27, 2026, the fund paid $0.80 per share, a 2.66% yield, in quarterly payments. Its 0.50% expense ratio compares with a 0.16% average among similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.