FRI: FIRST TRUST S&P REIT INDEX FUND
What this ETF is trying to do
The First Trust S&P REIT Index Fund (FRI) is an ETF that invests in Real Estate Investment Trusts (REITs). Essentially, it allows investors to put money into a variety of real estate companies through one fund.
Based on the Top Holdings data from October 7, 2026, the fund invests in companies like Welltower Inc (11.96%), Prologis Inc (9.65%), and Digital Realty Trust Inc (4.74%). These holdings can change over time.
What the numbers show
As of October 5, 2026, the share price was $29.32. To understand how the fund has performed, we look at two different types of returns: price return (the change in share price) and total return (which includes distributions).
• Year-to-Date (YTD): The price return is 7.36%, while the total return is 9.02%.
• One Year: The price return is 4.23%, and the total return is 7.14%.
• Three Year: The price return is 30.65%, and the total return is 42.83%.
For a simple example, if you had invested $10,000 based on the estimated price from roughly one year ago ($28.13), the price-only growth would have resulted in a value of approximately $10,423.04.
Income and distribution explanation
This ETF pays out cash to investors, which is called a distribution. It usually pays these distributions quarterly. The distribution yield is 2.73%.
It is important for beginners to know that a distribution yield is not the same as a total return. While distributions provide cash income, they do not guarantee that the original investment (the principal) will stay the same or grow.
NAV erosion explanation
"NAV erosion" happens when the underlying value of a fund's assets drops over time. Investors who want steady income care about principal stability because they don't want their initial investment to shrink.
For this ETF, the erosion-risk score is 94, which is labeled as "Stable / sideways" with "good" severity. Additionally, the severe erosion-risk flag is false, meaning the fund's price trend and score did not trigger a warning.
Pros
• Positive Returns: The fund has shown positive price and total returns over the short and long term.
• Stability: It has a "good" erosion-risk severity rating.
• Diversification: It holds 126 different assets.
Cons
• Moderate Yield: The distribution yield is 2.73%, which may be lower than what some income-focused investors seek.
Beginner takeaway
The First Trust S&P REIT Index Fund provides a way to invest in real estate companies. It has shown growth in both share price and total return over the last three years and currently shows a stable erosion-risk profile. Always remember that a high distribution yield alone can be misleading and does not guarantee a profit.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | WELLTOWER INC | WELL | 11.96% |
| 2 | PROLOGIS INC | PLD | 9.65% |
| 3 | DIGITAL REALTY TRUST INC | DLR | 4.74% |
| 4 | EQUINIX INC | EQIX | 4.65% |
| 5 | SIMON PROPERTY GROUP INC | SPG | 4.54% |
| 6 | REALTY INCOME CORP | O | 4.29% |
| 7 | PUBLIC STORAGE | PSA | 3.99% |
| 8 | MORGAN STANLEY INSTL LQUDTY TRS INSTL | MISXX | 3.87% |
| 9 | VENTAS INC | VTR | 3.18% |
| 10 | IRON MOUNTAIN INC | IRM | 2.72% |