Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the TCW Transform 500 ETF (VOTE) is a passively managed exchange traded fund launched on June 22, 2021.
The fund is sponsored by Tcw. It has amassed assets over $936.82 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.05%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector -- about 34.5% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 7.59% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 39.05% of total assets under management.
Performance and Risk
VOTE seeks to match the performance of the MORNINGSTAR US LARGE CAP SELECT INDEX before fees and expenses. The Morningstar US Large Cap Select Index is market cap-weighted and tracks the 500 largest companies in the US.
The ETF return is roughly 17.16% so far this year and is up about 14.44% in the last one year (as of 11/27/2025). In the past 52-week period, it has traded between $58.20 and $80.92.
The ETF has a beta of 1.01 and standard deviation of 15.37% for the trailing three-year period. With about 510 holdings, it effectively diversifies company-specific risk.
Alternatives
TCW Transform 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOTE is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO) track a similar index. While iShares Core S&P 500 ETF has $728.68 billion in assets, Vanguard S&P 500 ETF has $799.48 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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TCW Transform 500 ETF (VOTE): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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