FRDM vs. PWRD

Last updated Jul 21, 2026

FRDM (Freedom 100 Emerging Markets ETF) and PWRD (TCW Transform Systems ETF) are both exchange-traded funds - FRDM is a Emerging Markets Diversified fund tracking the Life + Liberty Freedom 100 Emerging Markets Index, while PWRD is a Energy Equities fund actively managed by TCW. FRDM is passively managed, while PWRD is actively managed. Over the past 3 years, FRDM returned 29.03%/yr vs 27.96%/yr for PWRD. A 0.69 correlation means they provide meaningful diversification when combined. FRDM charges 0.49%/yr vs 0.75%/yr for PWRD.

Performance

FRDM vs. PWRD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Freedom 100 Emerging Markets ETF (FRDM) 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, FRDM achieves a 26.86% return, which is significantly higher than PWRD's 13.74% return.

FRDM

• 1D: -0.48%
• 1M: -14.88%
• 6M: 16.73%
• YTD: 26.86%
• 1Y: 62.81%
• 3Y*: 29.03%
• 5Y*: 16.96%
• 10Y*: —
• ALL TIME*: 16.82%

PWRD

• 1D: -0.49%
• 1M: -9.05%
• 6M: 7.80%
• YTD: 13.74%
• 1Y: 19.09%
• 3Y*: 27.96%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 20.22%

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

FRDM vs. PWRD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
FRDM Freedom 100 Emerging Markets ETF	26.86%	61.27%	1.70%	22.77%	-15.95%
PWRD TCW Transform Systems ETF	13.74%	32.84%	28.54%	20.83%	-3.18%

Correlation

The correlation between FRDM and PWRD is 0.74, 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	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (All Time) Calculated using the full available price history since Feb 3, 2022	0.69

The correlation between FRDM and PWRD has been stable across timeframes, ranging from 0.65 to 0.74 - a consistent structural relationship.

Return for Risk

FRDM vs. PWRD — Risk / Return Rank

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

FRDM

FRDM Risk / Return Rank: 84
FRDM Sharpe Ratio Rank: 87
FRDM Sortino Ratio Rank: 77
FRDM Omega Ratio Rank: 83
FRDM Calmar Ratio Rank: 88
FRDM Martin Ratio Rank: 84

PWRD

PWRD Risk / Return Rank: 30
PWRD Sharpe Ratio Rank: 26
PWRD Sortino Ratio Rank: 26
PWRD Omega Ratio Rank: 26
PWRD Calmar Ratio Rank: 35
PWRD Martin Ratio Rank: 36

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.

FRDM vs. PWRD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Freedom 100 Emerging Markets ETF (FRDM) 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.

	FRDM	PWRD	Difference
Sharpe ratio: Return per unit of total volatility	2.13	0.71	+1.42
Sortino ratio: Return per unit of downside risk	2.61	1.12	+1.49
Omega ratio: Gain probability vs. loss probability	1.38	1.14	+0.24
Calmar ratio: Return relative to maximum drawdown	3.74	1.36	+2.38
Martin ratio: Return relative to average drawdown	12.45	4.14	+8.31

FRDM vs. PWRD - Sharpe Ratio Comparison

The current FRDM Sharpe Ratio is 2.13, which is higher than the PWRD Sharpe Ratio of 0.71. The chart below compares the historical Sharpe Ratios of FRDM 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

FRDM vs. PWRD - Drawdown Comparison

The maximum FRDM drawdown since its inception was -40.49%, which is greater than PWRD's maximum drawdown of -25.87%. Use the drawdown chart below to compare losses from any high point for FRDM and PWRD.

Drawdown Indicators

	FRDM	PWRD	Difference
Max Drawdown Largest peak-to-trough decline	-40.49%	-25.87%	-14.62%
Max Drawdown (1Y) Largest decline over 1 year	-16.87%	-14.12%	-2.75%
Max Drawdown (3Y) Largest decline over 3 years	-16.87%	-25.87%	+9.00%
Max Drawdown (5Y) Largest decline over 5 years	-29.25%	—	—
Current Drawdown Current decline from peak	-14.99%	-11.10%	-3.89%
Average Drawdown Average peak-to-trough decline	-7.09%	-5.09%	-2.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.06%	4.62%	+0.44%

Volatility

FRDM vs. PWRD - Volatility Comparison

Freedom 100 Emerging Markets ETF (FRDM) has a higher volatility of 12.98% compared to TCW Transform Systems ETF (PWRD) at 12.00%. This indicates that FRDM's price experiences larger fluctuations and is considered to be riskier than PWRD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FRDM	PWRD	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.98%	12.00%	+0.98%
Volatility (6M) Calculated over the trailing 6-month period	27.60%	22.52%	+5.08%
Volatility (1Y) Calculated over the trailing 1-year period	29.70%	26.90%	+2.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.10%	23.22%	-1.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.48%	23.22%	+0.26%

FRDM vs. PWRD - Expense Ratio Comparison

FRDM has a 0.49% expense ratio, which is lower than PWRD's 0.75% expense ratio.

Dividends

FRDM vs. PWRD - Dividend Comparison

FRDM's dividend yield for the trailing twelve months is around 1.71%, more than PWRD's 0.06% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
FRDM Freedom 100 Emerging Markets ETF	1.71%	2.26%	2.53%	2.66%	2.72%	2.17%	1.11%	1.07%
PWRD TCW Transform Systems ETF	0.06%	0.22%	0.49%	0.78%	0.91%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FRDM and PWRD in my portfolio?

FRDM and PWRD have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FRDM or PWRD?

FRDM has higher volatility (12.98%) compared to PWRD (12.00%). In terms of maximum drawdown, FRDM dropped -40.49% vs PWRD's -25.87%.

Which ETF is better, FRDM or PWRD?

On 3-year performance, FRDM leads with 29.03% vs 27.96% for PWRD. On fees, FRDM is cheaper at 0.49% per year. On volatility, PWRD has been the lower-risk option at 12.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FRDM or PWRD?

Over the 3-year period, FRDM has performed better with a 29.03% return vs 27.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FRDM or PWRD?

FRDM is cheaper with a 0.49% expense ratio, compared with 0.75% for PWRD.

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

FRDM has the higher dividend yield at 1.71%, compared with 0.06% for PWRD.

What is the main difference between FRDM and PWRD?

FRDM is categorized as Emerging Markets Diversified, while PWRD is Energy Equities. They also come from different issuers: Freedom Funds and TCW. Their fees differ too: 0.49% for FRDM and 0.75% for PWRD.

Which has better risk-adjusted returns?

FRDM currently has the higher Sharpe Ratio (2.13 vs 0.71), 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.