TCW Transform Systems ETF

TCW Transform Systems ETF (PWRD) is an actively managed stock fund from TCW. It held 31 companies as of July 31, 2026, picked because the manager expects them to gain from changes in how energy and power are produced and used. Holdings range from General Electric and Safran to chip-equipment makers and grid suppliers. It charges 0.75% a year, above the 0.48% peer average, and it has swung much harder than the broad market.

• Over the year to Oct 27, 2026, PWRD returned -3.7%, 7th of 7 among similar funds.
• The deepest fall in its price history was 23.3% (Jun 30, 2026 to Oct 23, 2026), not yet recovered.

As of Jul 31, 2026, the fund held 31 securities; the ten largest made up 52.03% of assets.

By sector

• Over the three months to Jul 31, 2026, investors added a net $47.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -0.03%, +9.12%, -12.24%.

PWRD does not track an index. TCW's managers pick stocks with one goal: long-term growth of capital. They look for companies that may lead, win or enable a shift in four energy and power systems. Transportation covers electric-vehicle supply chains, railroads, trucking and more fuel-efficient aircraft. The electric grid covers transmission lines, transformers and copper. Power generation includes oil and gas firms becoming more efficient. Enablers include waste management, engineering, semiconductors, software and data-center efficiency. The prospectus puts weight on "brown" or "grey" old-economy businesses that need heavy investment to change.

Candidates usually come from the Morningstar US Market Extended TR USD Index, a broad US stock index with no sustainability screens. The fund can also buy stocks listed outside the US. The managers use bottom-up research, meaning they study one company at a time. That work combines financial models, valuation and thematic data, with the aim of finding companies trading below what TCW thinks they are worth. At least 80% of net assets must go to companies that fit the theme. The rest can sit in cash or other stocks. The prospectus sets no formula for position sizes and no rebalancing schedule. Portfolio turnover was 52%.

The fund is non-diversified, so it can put large amounts into a few companies. As of July 31, 2026, its top 10 holdings made up 52% of assets. It used no derivatives or leverage, though it may lend out securities.

• PWRD charges 0.75% a year, versus an average of 0.48% for the similar funds below (5th of 7, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $77 in the first year and $967 over 10 years (assuming a 5% annual return).

It is a concentrated, actively managed theme fund that has moved about 1.7 times as much as the market, so it fits better as a small side position than as a foundation.

PWRD could add exposure to industrial, chip and energy companies tied to spending on power and the grid. Its full-year returns were 20.8% in 2023, 28.6% in 2024 and 32.6% in 2025. The fund launched in February 2022, so it has no record from 2008 or 2020. It did live through the 2022 bear market and lost 19.05% in the quarter that ended June 30, 2022. Its deepest drop in price data going back to February 2025 was 23.3%, from June 30 to October 23, 2026. It had not recovered as of October 27, 2026. A retiree who had to sell during a slide like that would lock in the loss. The fund pays almost no income: it yielded 0.06%, paid once a year. Its fee is 0.75% a year. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).