PWRD vs QQQ
TCW Transform Systems ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | PWRD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.18% | |
| AUM | $1.5B | $496.3B | |
| Dividend Yield | 0.06% | 0.44% | |
| Holdings | 36 | 108 | |
| YTD Return | +9.56% | +16.23% | |
| 1Y Return | +18.61% | +26.23% | |
| 3Y Return (annualized) | +28.07% | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 23.5% | 30.6% | |
| Max Drawdown | -25.9% | -83.0% | |
| Fund Family | TCW ETFs | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 2, 2022 | Mar 10, 1999 |
PWRD vs QQQ Performance
TCW Transform Systems ETF (PWRD) is a ETF from TCW ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PWRD returned +18.61% while QQQ returned +26.23%. Year to date, PWRD is up 9.56% versus a gain of 16.23% for QQQ.
Over three years, PWRD compounded at +28.07% per year against +25.75% for QQQ. Across the full 5-year window we track, PWRD has the edge at +19.69% annualized vs +13.02%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 23.5% for PWRD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -25.9% for PWRD and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PWRD charges 0.75% per year while QQQ charges 0.18%. On a $10,000 position that is $75 vs $18 annually, a gap of $57 per year that compounds over a long holding period. On income, PWRD currently yields 0.06% against 0.44% for QQQ.
Holdings Overlap
PWRD and QQQ share 3 holdings out of 130 unique holdings combined, representing a 6.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PWRD or QQQ?
PWRD has an expense ratio of 0.75% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, PWRD or QQQ?
Over the past year PWRD returned +18.61% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), PWRD annualized +19.69% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, PWRD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 23.5% for PWRD. Worst drawdown: PWRD -25.9% vs QQQ -83.0%.
Should I hold both PWRD and QQQ?
PWRD and QQQ have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PWRD and QQQ?
PWRD and QQQ share 3 common holdings with a 6.1% weight overlap. Combined, they hold 130 unique securities.
Which pays a higher dividend, PWRD or QQQ?
PWRD yields 0.06% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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