PWRD vs. ALAI

Last updated Aug 2, 2026

PWRD (TCW Transform Systems ETF) and ALAI (Alger AI Enablers & Adopters ETF) are both exchange-traded funds - PWRD is a Energy Equities fund actively managed by TCW, while ALAI is a Artificial Intelligence fund actively managed by Alger. Both are actively managed. Over the past year, PWRD returned 16.15% vs 36.47% for ALAI. Their 0.76 correlation means they have sometimes moved together and sometimes differently. PWRD charges 0.75%/yr vs 0.55%/yr for ALAI.

Performance

PWRD vs. ALAI - Performance Comparison

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

Returns By Period

In the year-to-date period, PWRD achieves a 12.31% return, which is significantly lower than ALAI's 19.08% return.

PWRD

• 1D: 1.38%
• 1M: -6.14%
• 6M: 8.24%
• YTD: 12.31%
• 1Y: 16.15%
• 3Y*: 26.89%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 19.73%

ALAI

• 1D: 1.40%
• 1M: -1.31%
• 6M: 19.94%
• YTD: 19.08%
• 1Y: 36.47%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 40.60%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ALAI Alger AI Enablers & Adopters ETF	$3.04M	$4.96M	$4.06M
PWRD TCW Transform Systems ETF	$9.89M	$10.00M	$12.60M

PWRD vs. ALAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PWRD TCW Transform Systems ETF	12.31%	32.84%	7.58%
ALAI Alger AI Enablers & Adopters ETF	19.08%	39.81%	32.38%

Correlation

The correlation between PWRD and ALAI is 0.77, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.77
Correlation (All Time) Calculated using the full available price history since Apr 5, 2024	0.76

The correlation between PWRD and ALAI has been stable across timeframes, ranging from 0.76 to 0.77 - a consistent structural relationship.

Return for Risk

PWRD vs. ALAI — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

PWRD

PWRD Risk / Return Rank: 25
PWRD Sharpe Ratio Rank: 24
PWRD Sortino Ratio Rank: 24
PWRD Omega Ratio Rank: 23
PWRD Calmar Ratio Rank: 26
PWRD Martin Ratio Rank: 31

ALAI

ALAI Risk / Return Rank: 45
ALAI Sharpe Ratio Rank: 47
ALAI Sortino Ratio Rank: 46
ALAI Omega Ratio Rank: 43
ALAI Calmar Ratio Rank: 45
ALAI Martin Ratio Rank: 44

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

PWRD vs. ALAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for TCW Transform Systems ETF (PWRD) and Alger AI Enablers & Adopters ETF (ALAI). 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.

	PWRD	ALAI	Difference
Sharpe ratio: Return per unit of total volatility	0.52	1.15	-0.64
Sortino ratio: Return per unit of downside risk	0.88	1.69	-0.81
Omega ratio: Gain probability vs. loss probability	1.11	1.20	-0.09
Calmar ratio: Return relative to maximum drawdown	0.82	1.63	-0.81
Martin ratio: Return relative to average drawdown	2.80	4.82	-2.02

PWRD vs. ALAI - Sharpe Ratio Comparison

The current PWRD Sharpe Ratio is 0.52, which is lower than the ALAI Sharpe Ratio of 1.15. The chart below compares the historical Sharpe Ratios of PWRD and ALAI, 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

PWRD vs. ALAI - Drawdown Comparison

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

Drawdown Indicators

	PWRD	ALAI	Difference
Max Drawdown Largest peak-to-trough decline	-25.87%	-29.36%	+3.49%
Max Drawdown (1Y) Largest decline over 1 year	-17.46%	-19.48%	+2.02%
Max Drawdown (3Y) Largest decline over 3 years	-25.87%	—	—
Current Drawdown Current decline from peak	-12.22%	-8.02%	-4.20%
Average Drawdown Average peak-to-trough decline	-5.14%	-5.18%	+0.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.13%	6.59%	-1.46%

Volatility

PWRD vs. ALAI - Volatility Comparison

TCW Transform Systems ETF (PWRD) and Alger AI Enablers & Adopters ETF (ALAI) have volatilities of 10.66% and 10.55%, 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

	PWRD	ALAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.66%	10.55%	+0.11%
Volatility (6M) Calculated over the trailing 6-month period	23.72%	22.46%	+1.26%
Volatility (1Y) Calculated over the trailing 1-year period	27.86%	27.66%	+0.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.45%	29.12%	-5.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.45%	29.12%	-5.67%

PWRD vs. ALAI - Expense Ratio Comparison

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

Dividends

PWRD vs. ALAI - Dividend Comparison

PWRD's dividend yield for the trailing twelve months is around 0.06%, less than ALAI's 1.26% yield.

Position	TTM	2025	2024	2023	2022
ALAI Alger AI Enablers & Adopters ETF	1.26%	1.50%	0.66%	0.00%	0.00%
PWRD TCW Transform Systems ETF	0.06%	0.22%	0.49%	0.78%	0.91%

Frequently Asked Questions

Can I hold both PWRD and ALAI in my portfolio?

PWRD and ALAI have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PWRD or ALAI?

PWRD has higher volatility (10.66%) compared to ALAI (10.55%). In terms of maximum drawdown, PWRD dropped -25.87% vs ALAI's -29.36%.

Which ETF is better, PWRD or ALAI?

On 1-year performance, ALAI leads with 36.47% vs 16.15% for PWRD. On fees, ALAI is cheaper at 0.55% per year. On volatility, ALAI has been the lower-risk option at 10.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PWRD or ALAI?

Over the 1-year period, ALAI has performed better with a 36.47% return vs 16.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PWRD or ALAI?

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

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

ALAI has the higher dividend yield at 1.26%, compared with 0.06% for PWRD.

What is the main difference between PWRD and ALAI?

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

Which has better risk-adjusted returns?

ALAI currently has the higher Sharpe Ratio (1.15 vs 0.52), 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.