PWRD vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricPWRDSPYWinner
Expense Ratio0.75%0.09%
AUM$1.5B$789.1B
Dividend Yield0.05%1.01%
Holdings31505
YTD Return+15.68%+13.68%
1Y Return+19.36%+21.53%
3Y Return (annualized)+29.62%+21.44%
5Y Return (annualized)-+13.18%
Volatility (annualized)23.5%15.3%
Max Drawdown-25.9%-56.5%
Fund FamilyTCW ETFsState Street Investment Management
CategoryEquityEquity
InceptionFeb 2, 2022Jan 22, 1993

PWRD vs SPY Performance

TCW Transform Systems ETF (PWRD) is a ETF from TCW ETFs and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PWRD returned +19.36% while SPY returned +21.53%. Year to date, PWRD is up 15.68% versus a gain of 13.68% for SPY.

Over three years, PWRD compounded at +29.62% per year against +21.44% for SPY. Across the full 5-year window we track, PWRD has the edge at +21.24% annualized vs +8.85%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PWRD has been the more volatile fund, with annualized monthly volatility of 23.5% compared with 15.3% for SPY. 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 -56.5% for SPY. 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 0.80. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PWRD charges 0.75% per year while SPY charges 0.09%. On a $10,000 position that is $75 vs $9 annually, a gap of $66 per year that compounds over a long holding period. On income, PWRD currently yields 0.05% against 1.01% for SPY.

Holdings Overlap

8.0%overlap

PWRD and SPY share 17 holdings out of 520 unique holdings combined, representing a 8.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PWRDWeight in SPYDifference
GE9.04%0.61%8.43%
AVGO4.09%2.73%1.36%
VRT6.25%0.19%6.06%
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TTProProPro
CATProProPro
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Frequently Asked Questions

Which is cheaper, PWRD or SPY?

PWRD has an expense ratio of 0.75% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $66 per year of difference.

Which performed better, PWRD or SPY?

Over the past year PWRD returned +19.36% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), PWRD annualized +21.24% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, PWRD or SPY?

PWRD has been the more volatile fund at 23.5% annualized versus 15.3% for SPY. Worst drawdown: PWRD -25.9% vs SPY -56.5%.

Should I hold both PWRD and SPY?

PWRD and SPY have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PWRD and SPY?

PWRD and SPY share 17 common holdings with a 8.0% weight overlap. Combined, they hold 520 unique securities.

Which pays a higher dividend, PWRD or SPY?

PWRD yields 0.05% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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