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Fundrise vs. REITs: Which Is a Better Investment?

Comparing the crowdfunding company to traditional REITs.

[Updated: Jun 21, 2021 ] Jun 13, 2021 by Matthew DiLallo

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Age of shares Approximate penalty (% of total share value)
90 days to 3 years 3%
3 to 4 years 2%
4 to 5 years 1%
5+ years None

Source: Fundrise.

Matt discusses how a lack of liquidity actually helps real estate investments remain stable
Year Fundrise (platform portfolio) Vanguard Total Stock Market ETF Vanguard Real Estate ETF
2014 12.25% 12.56% 30.29%
2015 12.42% 0.40% 2.37%
2016 8.76% 12.68% 8.53%
2017 11.44% 21.16% 4.95%
2018 9.11% (5.13%) (5.95%)
2019 9.47% 30.80% 28.91%
2020 7.42% 20.95% (4.72%)
Annualized avg. 10.11% 12.74% 8.37%

Data source: Fundrise. Parentheses indicate negative numbers.

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