PWRD vs VYM
TCW Transform Systems ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | PWRD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.04% | |
| AUM | $1.5B | $79.0B | |
| Dividend Yield | 0.05% | 2.86% | |
| Holdings | 31 | 568 | |
| YTD Return | +15.68% | +16.53% | |
| 1Y Return | +19.36% | +25.03% | |
| 3Y Return (annualized) | +29.62% | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 23.5% | 14.6% | |
| Max Drawdown | -25.9% | -58.8% | |
| Fund Family | TCW ETFs | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 2, 2022 | Nov 10, 2006 |
PWRD vs VYM Performance
TCW Transform Systems ETF (PWRD) is a ETF from TCW ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PWRD returned +19.36% while VYM returned +25.03%. Year to date, PWRD is up 15.68% versus a gain of 16.53% for VYM.
Over three years, PWRD compounded at +29.62% per year against +18.54% for VYM. Across the full 5-year window we track, PWRD has the edge at +21.24% annualized vs +7.10%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PWRD charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, PWRD currently yields 0.05% against 2.86% for VYM.
Holdings Overlap
PWRD and VYM share 5 holdings out of 587 unique holdings combined, representing a 8.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PWRD or VYM?
PWRD has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, PWRD or VYM?
Over the past year PWRD returned +19.36% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), PWRD annualized +21.24% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, PWRD or VYM?
PWRD has been the more volatile fund at 23.5% annualized versus 14.6% for VYM. Worst drawdown: PWRD -25.9% vs VYM -58.8%.
Should I hold both PWRD and VYM?
PWRD and VYM have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PWRD and VYM?
PWRD and VYM share 5 common holdings with a 8.0% weight overlap. Combined, they hold 587 unique securities.
Which pays a higher dividend, PWRD or VYM?
PWRD yields 0.05% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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