PWRD vs USMC
TCW Transform Systems ETF vs Principal U.S. Mega-Cap ETF
Which is better, PWRD or USMC?
Each has led over a different period.
USMC has a lower expense ratio. PWRD led over 3Y and the full window, USMC over 1Y. PWRD is less concentrated, with 50.6% of the fund in its ten largest positions against 55.3%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PWRD | USMC |
|---|---|---|
| Expense Ratio | 0.75% | 0.12%Best |
| AUM | $1.5B | $5.2B |
| Dividend Yield | 0.06% | 0.74% |
| Holdings | 56 | 58 |
| YTD Return | +3.29% | +13.98%Best |
| 1Y Return | +2.06% | +14.91%Best |
| 3Y Return (annualized) | +25.66%Best | +22.22% |
| 5Y Return (annualized) | - | +14.81% |
| Volatility (annualized) | 23.2% | 15.1%Best |
| Max Drawdown | -25.9% | -22.0%Best |
| $10,000 over 4.7 years | $21,348Best | $19,351 |
| Top 10 Weight | 50.6%Best | 55.3% |
| Fund Family | TCW ETFs | Principal Funds |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Feb 2, 2022 | Oct 11, 2017 |
Volatility and max drawdown, and the $10,000 over 4.7 years row, are measured over the window both funds cover: Feb 3, 2022 to Oct 14, 2026 (4.7 years).
PWRD vs USMC growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4.7 years both funds cover.
PWRD vs USMC Performance
TCW Transform Systems ETF (PWRD) is an ETF from TCW ETFs and Principal U.S. Mega-Cap ETF (USMC) is an ETF from Principal Funds. Over the past year PWRD returned +2.06% while USMC returned +14.91%. Year to date, PWRD is up 3.29% versus a gain of 13.98% for USMC.
Over three years, PWRD compounded at +25.66% per year against +22.22% for USMC.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PWRD has been the more volatile fund, with annualized monthly volatility of 23.2% compared with 15.1% for USMC. 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 -22.0% for USMC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PWRD charges 0.75% per year while USMC charges 0.12%. On a $10,000 position that is $75 vs $12 annually, a gap of $63 per year that compounds over a long holding period. On income, PWRD currently yields 0.06% against 0.74% for USMC.
Holdings Overlap
17.1% of PWRD's money is in holdings USMC also owns. 12.0% of USMC's money is in holdings PWRD also owns.
PWRD and USMC share little of their money.
4 positions in common, counted across the 28 positions we hold weights for in PWRD and 27 in USMC, against full books of 56 and 58.
What only one of them owns
Our book lists 23 positions for USMC that do not appear in our book for PWRD (87.9% of the fund), and 18 for PWRD that do not appear in USMC (64.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of PWRD and USMC you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PWRD or USMC?
PWRD has an expense ratio of 0.75% while USMC charges 0.12%. USMC is the cheaper option, by $63 a year on a $10,000 investment.
Which performed better, PWRD or USMC?
Over the past year PWRD returned +2.06% vs +14.91% for USMC, so USMC leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PWRD or USMC?
PWRD has been the more volatile fund at 23.2% annualized versus 15.1% for USMC. Worst drawdown: PWRD -25.9% vs USMC -22.0%.
Should I hold both PWRD and USMC?
PWRD and USMC have a monthly-return correlation of 0.73, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PWRD and USMC?
17.1% of PWRD's money is in holdings USMC also owns. 12.0% of USMC's is in holdings PWRD also owns. They hold 4 positions in common, counted across the 28 positions we hold weights for in PWRD and 27 in USMC.
Which pays a higher dividend, PWRD or USMC?
PWRD yields 0.06% while USMC yields 0.74%, so USMC currently pays the higher dividend yield.
Is USMC better than PWRD?
USMC has a lower expense ratio. PWRD led over 3Y and the full window, USMC over 1Y. PWRD is less concentrated, with 50.6% of the fund in its ten largest positions against 55.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.