TCW Transform Systems ETF

PWRD

Market cap $1.45B

The TCW Transform Systems ETF has outperformed the S&P 500, delivering strong returns driven by exposure to energy, data centers, and power infrastructure trends. PWRD's active management and high turnover have shifted recent sector allocations, increasing technology exposure while maintaining a core focus on industrials and energy transformation. Despite high valuations (average PE > 30) and an above-average expense ratio, PWRD maintains a five-star Morningstar rating for risk-adjusted returns, reflecting strong historical performance.

While most energy transition funds chase the next clean technology breakthrough, the TCW Transform Systems ETF (PWRD) has quietly amassed more than $1.5 billion by betting on a less glamorous thesis: the United States doesn't have enough transformers, power lines, or electricians to support the coming surge in electricity demand.

Despite the gloomy headlines, market breadth is increasing. More stocks are moving higher.

Active fixed income ETFs gathered an impressive 38% of the $173 billion of net inflows in the 12 months ended January 2026. TCW's recent expansion serves as a strong case study in how a legacy bond powerhouse can benefit as ETFs gain market share.

LOS ANGELES--(BUSINESS WIRE)--The TCW Group, a leading global investment firm, announced today that TCW Transform Systems ETF (PWRD) has surpassed $1 billion in assets under management (AUM), with 200% asset growth since January 2025, and 32.58% annual return in 2025, making it the top-performing exchange-traded fund in its peer group last year1, according to data from Morningstar. PWRD is an actively managed ETF that aims to invest in companies across many sectors that are driving or benefitti.

Energy markets around the world have been shaken up by geopolitical volatility, most notably in Venezuela and Iran. However, there's much more to the story beyond just those two countries.

TCW Transform Systems ETF has delivered top-percentile returns in 2024 and 2025, earning a five-star Morningstar rating. PWRD targets companies driving energy transformation, with heavy industrial exposure and 25% international allocation, but currently trades at elevated valuations. The ETF has outperformed the S&P 500 by over 6% annualized since inception, though it has lagged in the last six months and faces near-term volatility risks.

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.