ALAI vs. PWRD

Last updated Jun 24, 2026

ALAI (Alger AI Enablers & Adopters ETF) and PWRD (TCW Transform Systems ETF) are both exchange-traded funds - ALAI is a Technology Equities fund actively managed by Alger, while PWRD is a Energy Equities fund actively managed by TCW. Both are actively managed. Over the past year, ALAI returned 55.24% vs 36.33% for PWRD. A 0.76 correlation means they provide meaningful diversification when combined. ALAI charges 0.55%/yr vs 0.75%/yr for PWRD.

Performance

ALAI vs. PWRD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alger AI Enablers & Adopters ETF (ALAI) and TCW Transform Systems ETF (PWRD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ALAI achieves a 23.84% return, which is significantly higher than PWRD's 21.92% return.

ALAI

• 1D: -3.08%
• 1M: 2.64%
• YTD: 23.84%
• 6M: 21.16%
• 1Y: 55.24%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PWRD

• 1D: -4.36%
• 1M: 4.92%
• YTD: 21.92%
• 6M: 19.81%
• 1Y: 36.33%
• 3Y*: 33.16%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

ALAI vs. PWRD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ALAI Alger AI Enablers & Adopters ETF	23.84%	39.81%	32.38%
PWRD TCW Transform Systems ETF	21.92%	32.84%	7.58%

Correlation

The correlation between ALAI and PWRD is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.75
Correlation (All Time) Calculated using the full available price history since Apr 5, 2024	0.76

The correlation between ALAI and PWRD has been stable across timeframes, ranging from 0.75 to 0.76 - a consistent structural relationship.

Return for Risk

ALAI vs. PWRD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ALAI

ALAI Risk / Return Rank: 62
ALAI Sharpe Ratio Rank: 70
ALAI Sortino Ratio Rank: 62
ALAI Omega Ratio Rank: 61
ALAI Calmar Ratio Rank: 61
ALAI Martin Ratio Rank: 55

PWRD

PWRD Risk / Return Rank: 46
PWRD Sharpe Ratio Rank: 43
PWRD Sortino Ratio Rank: 41
PWRD Omega Ratio Rank: 40
PWRD Calmar Ratio Rank: 55
PWRD Martin Ratio Rank: 52

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ALAI vs. PWRD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alger AI Enablers & Adopters ETF (ALAI) and TCW Transform Systems ETF (PWRD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ALAI	PWRD	Difference
Sharpe ratio: Return per unit of total volatility	2.14	1.44	+0.69
Sortino ratio: Return per unit of downside risk	2.73	1.99	+0.74
Omega ratio: Gain probability vs. loss probability	1.35	1.25	+0.10
Calmar ratio: Return relative to maximum drawdown	2.85	2.58	+0.27
Martin ratio: Return relative to average drawdown	8.95	8.57	+0.38

ALAI vs. PWRD - Sharpe Ratio Comparison

The current ALAI Sharpe Ratio is 2.14, which is higher than the PWRD Sharpe Ratio of 1.44. The chart below compares the historical Sharpe Ratios of ALAI and PWRD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ALAI vs. PWRD - Drawdown Comparison

The maximum ALAI drawdown since its inception was -29.36%, which is greater than PWRD's maximum drawdown of -25.87%. Use the drawdown chart below to compare losses from any high point for ALAI and PWRD.

Drawdown Indicators

	ALAI	PWRD	Difference
Max Drawdown Largest peak-to-trough decline	-29.36%	-25.87%	-3.49%
Max Drawdown (1Y) Largest decline over 1 year	-19.48%	-14.12%	-5.36%
Max Drawdown (3Y) Largest decline over 3 years	—	-25.87%	—
Current Drawdown Current decline from peak	-4.34%	-4.36%	+0.02%
Average Drawdown Average peak-to-trough decline	-5.12%	-5.07%	-0.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.19%	4.25%	+1.94%

Volatility

ALAI vs. PWRD - Volatility Comparison

Alger AI Enablers & Adopters ETF (ALAI) and TCW Transform Systems ETF (PWRD) have volatilities of 11.00% and 10.84%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ALAI	PWRD	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.00%	10.84%	+0.16%
Volatility (6M) Calculated over the trailing 6-month period	20.54%	20.67%	-0.13%
Volatility (1Y) Calculated over the trailing 1-year period	25.98%	25.31%	+0.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.89%	22.89%	+6.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.89%	22.89%	+6.00%

ALAI vs. PWRD - Expense Ratio Comparison

ALAI has a 0.55% expense ratio, which is lower than PWRD's 0.75% expense ratio.

Dividends

ALAI vs. PWRD - Dividend Comparison

ALAI's dividend yield for the trailing twelve months is around 1.21%, while PWRD has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022
ALAI Alger AI Enablers & Adopters ETF	1.21%	1.50%	0.66%	0.00%	0.00%
PWRD TCW Transform Systems ETF	0.00%	0.22%	0.49%	0.78%	0.91%

Frequently Asked Questions

Can I hold both ALAI and PWRD in my portfolio?

ALAI and PWRD have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ALAI or PWRD?

ALAI has higher volatility (11.00%) compared to PWRD (10.84%). In terms of maximum drawdown, ALAI dropped -29.36% vs PWRD's -25.87%.

Which ETF is better, ALAI or PWRD?

On 1-year performance, ALAI leads with 55.24% vs 36.33% for PWRD. On fees, ALAI is cheaper at 0.55% per year. On volatility, PWRD has been the lower-risk option at 10.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ALAI or PWRD?

Over the 1-year period, ALAI has performed better with a 55.24% return vs 36.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ALAI or PWRD?

ALAI is cheaper with a 0.55% expense ratio, compared with 0.75% for PWRD.

Which ETF pays a higher dividend yield, ALAI or PWRD?

ALAI has the higher dividend yield at 1.21%, compared with 0.00% for PWRD.

What is the main difference between ALAI and PWRD?

ALAI is categorized as Technology Equities, while PWRD is Energy Equities. They also come from different issuers: Alger and TCW. Their fees differ too: 0.55% for ALAI and 0.75% for PWRD.

Which has better risk-adjusted returns?

ALAI currently has the higher Sharpe Ratio (2.14 vs 1.44), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.