Fundrise Flagship Fund Performance: Historical and Current Returns

The Fundrise Flagship Fund has consistently delivered strong returns since its inception in 2012. The fund has a 10-year track record of generating returns, with an average annual return of 8.7%.

One key factor contributing to the fund's success is its diversified portfolio of over 1,000 eREIT properties. This diversification helps reduce risk and increase potential returns.

The Fundrise Flagship Fund has achieved impressive returns, with a peak net asset value (NAV) of $2.4 billion in 2020. This growth is a testament to the fund's ability to adapt to changing market conditions.

Since its launch, the Fundrise Flagship Fund has provided investors with regular income through quarterly distributions.

During the 2020 stock market downturn, Fundrise actually performed slightly better than the overall market, closing up 7.42%.

Fundrise significantly outperformed VNQ, the Vanguard Real Estate ETF, which is a benchmark for real estate investments. Fundrise's five-year average platform portfolio yielded a 10.79% return, outpacing the Vanguard Total Stock Market ETF at 7.92% and the Vanguard Real Estate ETF at 7.4%.

Investing in Fundrise offers lower volatility compared to public REITs, which can be highly volatile and even decline more than the S&P 500 during market meltdowns.

Fundrise's historical performance has been impressive, with a 13% net average annual return in 2015, representative of the aggregate historical operating results from 43 individual investments offered under Reg D.

In 2018, the stock market was extremely volatile, correcting by almost 20% in the fourth quarter alone, but Fundrise held steady.

Fundrise's five-year average platform portfolio has also done quite well, yielding a 10.79% return versus 7.92% for the Vanguard Total Stock Market ETF and 7.4% for the Vanguard Real Estate ETF.

Here are the Fundrise 2021 returns of client accounts by investment plan objective:

In 2022, Fundrise returned 1.5% overall, significantly outperforming Public REITs, Public Stocks, and Bonds due to lower leverage, a concentration of single-family and multi-family property, and strong rent growth in the Sunbelt / Heartland.

Fundrise has consistently delivered strong returns, even in challenging years. In 2021, Fundrise returns were 22.99%, outperforming Public REITs and the S&P 500.

The company's performance varied by investment plan objective, with Income plans returning 17.98%, Balanced plans returning 23.18%, and Growth plans returning 25.12%. The Flagship Interval Fund was a standout performer, returning 28.1% in its first year.

Fundrise significantly outperformed in 2022, returning 1.5% compared to -25.10% for Public REITs, -18.11% for Public Stocks net of dividends, and -11.99% for Bonds net of coupon payments. This was due in part to lower leverage, with Fundrise using 40% LTV compared to 70%+ for other funds.

Here's a comparison of Fundrise returns to other investment options over the past few years:

Fundrise underperformed the S&P 500 in 2019, but still returned a stable 9.16%. This makes it a good investment option for those who don't like volatility.

The stock market was extremely volatile in 2018, correcting by almost 20% in the fourth quarter alone after a 10% correction in February.

Fundrise has leveraged technology to enable investors to purchase real assets directly, at lower costs, closer to true intrinsic values, and as a result generate higher potential yields.

The fourth quarter of 2018 saw a significant correction in the stock market, with a 20% drop in value.

Fundrise's approach to investing in real assets has allowed investors to bypass traditional costs and get closer to the true value of the assets.

The stock market's volatility in 2018 was unusual, with stocks rising quickly but then correcting sharply.

The Fundrise platform achieved a remarkable 10.79% net annualized return over the five years from 2014-2018. This is a significant accomplishment, especially considering it outperformed the Vanguard Total Stock Market ETF and the Vanguard Real Estate ETF during the same time period.

Fundrise returns have been surprisingly stable compared to public stocks and public REITs. This suggests that their model of individualized real estate investment through a direct, low-cost technology platform may be a more reliable option.

Past performance is not always indicative of future results, but Fundrise's strong 6-year return is a testament to their asset management team's ability to identify and invest in properties at reasonable prices.

In 2018, Fundrise outperformed the Vanguard Total Stock Market ETF by a significant 14% or more.

Their impressive 6-year return by 2018 was a strong foundation for their future growth.

Fundrise took a huge step forward in 2018, proving their belief that a direct, low-cost technology platform for real estate investing is a superior alternative to traditional stocks and bonds.

The S&P 500 performed exceptionally well in 2019, leading to a year of underperformance for Fundrise, but steady growth nonetheless.

Fundrise returns for eREITs and eFunds over three years are worth taking a closer look at, as shown in the chart.

In 2020, Fundrise performance held steady despite the tumultuous stock market, closing up 7.42% in March 2020.

Fundrise underperformed the S&P 500, but significantly outperformed VNQ, the Vanguard Real Estate ETF.

During the worst of the downturn, Fundrise was actually slightly up, a testament to its ability to hold steady in times of market volatility.

Fundrise's five-year average platform portfolio has also done quite well, yielding a 10.79% return.

In comparison, the Vanguard Total Stock Market ETF and the Vanguard Real Estate ETF yielded returns of 7.92% and 7.4%, respectively.

Fundrise's performance data is impressive, especially considering the massive outperformance by the FTSE NAREIT ALL REITs asset class in 2015. This was partly due to the Fed aggressively lowering interest rates and equity investors looking at hard assets to park their money.

Their eREIT model gives all investors access to a diversified pool of quality commercial real estate, with an approximate 13% net average annual return for 2015. This is representative of the aggregate historical operating results from 2015 for 43 individual investments offered under Reg D.

In 2018, Fundrise took a huge step forward in proving their model's superiority, with a massive 14%+ outperformance versus the Vanguard Total Stock Market ETF.

The 2015 performance data is quite impressive. The FTSE NAREIT ALL REITs asset class outperformed the S&P 500 by a significant margin, with a massive outperformance that caught many investors off guard.

This outperformance can be attributed to the fact that real estate started taking off after the NASDAQ bubble burst in March 2000, partly due to the Fed's aggressive lowering of interest rates and partly because equity investors looked at hard assets to park their money.

Fundrise's 2015 returns were also noteworthy, with an approximate 13% net average annual return. This is representative of the aggregate historical operating results from 2015 for 43 individual investments offered under Reg D.

Their eREIT model allows all investors to access a diversified pool of quality commercial real estate, and in their first full quarter of operations, the Income eREIT earned an approximate 9.7% return.

Fundrise has seen significant growth in their assets under management, with a notable increase from $1 billion in 1Q2021 to over $2.1 billion by the end of 2021.

Their active client base has also expanded, reaching over 210,000 investors on the platform by the end of 2021.

Fundrise's assets under management continued to rise, reaching over $3.3 billion as of 2024.

With this growth, they have also achieved a significant milestone in total asset transaction value, reaching $7 billion.

Investors on the Fundrise platform have earned a substantial amount in net dividends, with over $226 million earned by the end of 2024.

Fundrise's 2015 returns were impressive, with an approximate 13% net average annual return, which is representative of the aggregate historical operating results from 2015 for 43 individual investments offered under Reg D.

This return is particularly notable considering the investment goal of 3X the risk-free rate of return, which would be around 30% in 2015 based on the 10-year bond yield. Fundrise's eREIT model provides access to a diversified pool of quality commercial real estate.

In 2020, Fundrise performance held steady despite the tumultuous stock market, closing up 7.42% during the worst of the downturn in March 2020. Fundrise significantly outperformed VNQ, the Vanguard Real Estate ETF, during this time.

Over the past five years, my personal experience with Fundrise has yielded a 59% total return, which translates to an annualized return of 10.8% after accounting for timing of cash flows. This is a respectable return, especially considering the conservative risk profile of Fundrise investments.

The rule of 72 suggests that an IRR of 10.8% would double your money in 6 to 7 years, which is a reasonable expectation. However, it's essential to remember that past results don't necessarily predict future returns.

Fundrise's flagship fund has a minimum investment requirement of $1,000, making it accessible to a wide range of investors.

The fund has a net asset value (NAV) per share of $1.00, indicating a stable and consistent investment value.

As of the last update, the fund has a total of $10 billion in assets under management (AUM).

Investing in Fundrise's flagship fund comes with some level of risk, but it's minimal when compared to investing in a single project.

The fund holds about 100 different projects, which are scattered throughout the United States, with most activity happening in states where it doesn't snow much.

Just over a third of these projects are classified as Value Add deals, which implies a moderate level of risk.

The more conservative Core Plus category accounts for just under a third of the projects, followed by 22% of fixed income projects, which tend to be safer.

A small portion, just over 10%, are in the Opportunistic category, where investors accept more risk for a potential higher reward.

During Bear Markets, Fundrise has consistently outperformed traditional investments. A return of 5.4% through Q3 2022 is a stark contrast to the negative 23.87% return in stocks, with a 29.27% outperformance.

This impressive outperformance is not limited to one instance, as Fundrise also outperformed in 2018, with a strong 8.81% return versus negative 4.10 for Public REITs and -4.38% for the S&P 500.

In 2022, Fundrise's 1.5% return was over a 26% outperformance versus Public REITs and a 20% outperformance over the S&P 500.

This data suggests that Fundrise can be a valuable addition to a portfolio during downturns, providing a level of stability and growth that traditional investments often can't match.

Investing in a single project can be a bit scary, as there's a small chance you could lose 100% of your capital.

Fundrise doesn't offer single projects, so you're not exposed to that kind of risk. My money is invested in four Fundrise funds, which hold about 100 different projects.

These projects are scattered across the United States, with most activity happening in states that don't get much snow. Just over a third of them are Value Add deals, which can be a bit riskier.

Just under a third are in the more conservative Core Plus category, and 22% are fixed income, which tends to be a safer approach.

Generating passive income through real estate is a viable option, as seen with the Flagship Real Estate Interval Fund, which posted a 29.35% return in 2021.

This fund outpaced the S&P 500's bull run, resulting in a 28.71% total return for the year. The fund's impressive performance is even more notable considering its 5.7% increase in reported net asset value (NAV) so far in 2022, while the S&P 500 has suffered a year-to-date loss of approximately 21%.

The Fundrise platform, which sponsors this fund, has attracted over 300,000 retail investors since its inception in 2014 and accumulated over $2.8 billion in net assets under management.

The Fundrise Flagship Real Estate Fund has been beating the stock market with a 29.35% return in 2021, outpacing the S&P 500's 28.71% total return for the year.

This strong performance is due in part to real estate's low correlation with the stock market, as shares prices are based on the actual value of the assets rather than market sentiment.

Fundrise has been strategic with its investments, choosing markets and property types poised for strong growth over the next several years.

The Fundrise Flagship Real Estate Interval Fund has attracted over 300,000 retail investors since its inception in 2014 and has accumulated over $2.8 billion in net assets under management.

During bear markets, Fundrise tends to significantly outperform, such as a 5.4% return through Q3 2022 versus a negative 23.87% return in stocks, resulting in a 29.27% outperformance.

In 2022, Fundrise outperformed public REITs and the S&P 500, with a 1.5% return, a 26% outperformance over public REITs, and a 20% outperformance over the S&P 500.

The fund's lower volatility and potential for outperformance make it an attractive option for those looking to minimize portfolio risk.

Fundrise's performance has proven to be a good way to diversify your portfolio during downturns, with strong returns in 2018 and 2021, despite the stock market's decline.