ETF Evaluator: T. Rowe Price Hedged Equity ETF () Follow This ETF

T. Rowe Price Hedged Equity ETF Overview

T. Rowe Price Hedged Equity ETF (THEQ) is an actively managed Nontraditional Equity Equity Hedged exchange-traded fund (ETF). T. Rowe Price launched the ETF in 2025.

The investment seeks to provide long-term capital growth. The fund normally invests at least 80% of its net assets (plus any borrowings for investments purposes) in equities The fund’s overall goal is to combine a long equity strategy with a derivatives hedging strategy that reduces portfolio volatility and provides protection during equity market downturns. As part of the long equity strategy, the majority of the fund invests in T. Rowe Price and third-party exchange-traded funds and particularly in the T. Rowe Price U.S. Equity Research ETF (TSPA). The fund is non-diversified.

About T. Rowe Price Hedged Equity ETF (THEQ)

There are 1 members of the management team with an average tenure of 1.35 years: Sean McWilliams (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.

T. Rowe Price Hedged Equity ETF has 121 securities in its portfolio. The top 10 holdings constitute 114.6% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

T. Rowe Price Hedged Equity ETF is part of the Equity global asset class and is within the Nontraditional Equity ETF group. T. Rowe Price Hedged Equity ETF has 1.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 78.5% There is 1.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 12.4% (12.4% domestic bond, 0.0% foreign bond and 0.0% convertible bond). T. Rowe Price Hedged Equity ETF has 1.7% of the portfolio in cash.

Assets Under Management

The fund has $37 million in total assets, which is below the $294 million average for the Equity Hedged category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

THEQ Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The T. Rowe Price Hedged Equity ETF expense ratio is average compared to funds in the Equity Hedged category. T. Rowe Price Hedged Equity ETF has an expense ratio of 0.46%, which is 40% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. T. Rowe Price Hedged Equity ETF has a portfolio turnover rate of 15%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 97% for the Equity Hedged category.

Recently, in the month of July 2026, T. Rowe Price Hedged Equity ETF returned -0.5%, which earned it a grade of D, as the Equity Hedged category had an average return of -1.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

T. Rowe Price Hedged Equity ETF has a trailing yield of 0.48%, which is below the 3.45% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

T. Rowe Price Hedged Equity ETF Grades

Year to date, the ETF has returned 6.3%, 0.9 percentage points worse than the category, which translates into a grade of C. The fund has returned 12.2% over the past year (grade of C).

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