The TCW Durable Growth ETF (GRW) faced a challenging third quarter in 2025, recording a negative return of 8.25% after fees, starkly differing from the S&P 500 Index's positive return of 8.12%. Despite this recent underperformance, the fund maintains a strong long-term track record, demonstrating its strategic approach to investing in companies characterized by robust growth, market leadership, and substantial free cash flow. Since its inception in January 2016, GRW has delivered an impressive cumulative return of 334.89%, surpassing the S&P 500 Index's 308.23% over the identical timeframe.
Investment Performance of TCW Durable Growth ETF in Q3 2025
In the third quarter of 2025, the investment landscape presented a formidable challenge, with the TCW Durable Growth ETF (GRW) registering a return of -8.25% net of fees. This performance stood in contrast to the broader market, as the S&P 500 Index posted a gain of 8.12% during the same period. Notable positive contributors to GRW's portfolio in this quarter included GE Aerospace (GE), O'Reilly Automotive (ORLY), and Cadence Design Systems (CDNS), which showed resilience amidst market volatility. These companies, known for their strong market positions and consistent financial performance, underscore the fund's strategy of targeting durable businesses. Since its launch in January 2016, the GRW ETF has showcased its long-term potential by achieving a cumulative return of 334.89%, outperforming the S&P 500 Index's 308.23% return. This extended period of outperformance highlights the effectiveness of GRW's active management approach and its focus on firms that exhibit resilient, predictable growth and strong free cash flow generation. The fund's investment thesis centers on identifying companies that are leaders in their respective markets, capable of sustaining growth through various economic cycles.
This analysis of the TCW Durable Growth ETF's performance offers valuable insights into the dynamics of actively managed funds. While short-term fluctuations are an inherent part of market participation, the fund's long-term outperformance against a major benchmark like the S&P 500 emphasizes the importance of a well-defined investment strategy and meticulous selection of companies. It reminds investors that even amidst quarterly setbacks, focusing on fundamental strengths such as market leadership, consistent growth, and robust cash flow can lead to superior returns over time. This approach not only provides a hedge against market volatility but also capitalizes on the intrinsic value of high-quality businesses, ultimately rewarding patient and informed investors.
