PERFECT WORLD CO LTD SPONSORED ADR REPSTG CL B (CAYMAN ISL)

PWRD

TCW Transform Systems ETF offers focused exposure to next-generation power distribution and energy transition, with a strong tilt toward industrials and AI data centers. PWRD's portfolio is concentrated, with the top 10 holdings comprising over 60%, and includes leaders in power infrastructure, AI chips, and traditional energy transitioning to renewables. Despite a higher expense ratio, PWRD has outperformed peers and provides diversified access to the energy lifecycle but carries concentration and sector-specific risks.

Jennifer Grancio, TCW global head of ETFs, joins 'Squawk on the Street' to discuss ETF activity, market competition, and much more.

It's been full steam ahead for active ETFs, with total assets now rapidly approaching the $1 trillion milestone. The ETF market, once dominated by passive indexed strategies, has undergone a seismic shift, as issuers tap into investor demand for flexible and transparent tailor-made strategies.

Following the recent drag in A.I. companies, Eli Horton turns to other investment themes investors may be missing.