Fund Evaluator:
T. Rowe Price Hedged Equity Z (PZHEX)
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Best Performing in Equity Hedged Over the Last Year
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| 14.8% | T. Rowe Price Hedged Equity Z (PZHEX) |
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| 11.7% | Horizon Defined Risk Investor (HNDRX) |
Fund Details
T. Rowe Price Hedged Equity Z Overview
T. Rowe Price Hedged Equity Z (PZHEX) is an actively managed Nontraditional Equity Equity Hedged fund. T. Rowe Price launched the fund in 2023.
The investment seeks to provide long-term capital growth. The fund normally invests at least 80% of its net assets (including any borrowings for investment purposes) in equity securities and derivatives that have similar economic characteristics to equity securities or the equity markets. The fund may purchase the stocks of companies of any size and invest in any type of equity security, but its focus will typically be on common stocks of large-cap U.S. companies. The fund is non-diversified.
About T. Rowe Price Hedged Equity Z (PZHEX)
There are 1 members of the management team with an average tenure of 2.99 years: Sean McWilliams (2023). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and S&P 500 (TR) (1970) index with a weighting of 100%. T. Rowe Price Hedged Equity Z has 345 securities in its portfolio. The top 10 holdings constitute 52.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
T. Rowe Price Hedged Equity Z is part of the Equity global asset class and is within the Nontraditional Equity fund group. T. Rowe Price Hedged Equity Z has 1.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 75.3%. There is 1.7% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.6% (0.6% domestic bond, 0.0% foreign bond and 0.0% convertible bond). T. Rowe Price Hedged Equity Z has 22.4% of the portfolio in cash.
Assets Under Management
The fund has $3 billion in total assets, which is above the $440 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.
PZHEX 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 Z expense ratio is low compared to funds in the Equity Hedged category. T. Rowe Price Hedged Equity Z has an expense ratio of 0.00%, which is 100% 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 Z has a portfolio turnover rate of 54%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 82% for the Equity Hedged category.
Recently, in the month of June 2026, T. Rowe Price Hedged Equity Z returned -0.4%, which earned it a grade of C, as the Equity Hedged category had an average return of -0.4%. 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 funds in that category.
T. Rowe Price Hedged Equity Z has a trailing yield of 1.30%, which is above the 0.93% 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 Z Grades
Year to date, the fund has returned 7.0%, 1.5 percentage points better than the category, which translates into a grade of B. The fund has returned 14.8% over the past year (grade of B).
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PZHEX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| PZHEX Return (NAV) | -0.4% | 9.9% | 14.8% | na | na | na |
| PZHEX Grade | C | B | B | na | na | na |
| +/- Category | -0.0% | 2.3% | 3.0% | na | na | na |
| Equity Hedged Avg | -0.4% | 7.6% | 11.8% | 10.3% | 6.1% | 6.8% |
| PZHEX Tax Cost Ratio | na | na | 2.1% | na | na | na |
PZHEX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| PZHEX Return (NAV) | 7.0% | 11.9% | 19.9% | na | na | na | na | na | na | na | na |
| PZHEX Grade | B | B | A | na | na | na | na | na | na | na | na |
| +/- Category | 1.5% | 2.6% | 7.7% | na | na | na | na | na | na | na | na |
| Equity Hedged Avg | 5.5% | 9.4% | 12.2% | 12.3% | -9.8% | 11.3% | 10.8% | 14.1% | -2.7% | 8.9% | 4.5% |
| Risk Measures | |
| Standard Deviation: | na |
| Total Risk Index: | na |
| Category Risk Index: | na |
| Category Risk Grade: | |
| Beta: | na |
| R-Squared: | na |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Blend |
| Bond Investment Style: | na |
| Yield: | 1.3% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $4083 Mil |
| Fund Total Assets: | $3,656 Mil |
| Share Class Type: | Inst |
| Portfolio Turnover: | 55% |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 3.0 years | |||
| Average Tenure: 3.0 years | |||
| Managers (Year): McWilliams Sean (2023) | |||
Portfolio Composition (as of 4/30/26)
| # of Holdings: | 345 |
| % in Top 10 Holdings: | 52.0% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 1.7% |
Portfolio Allocation |
|
| Domestic Stock: | 75.3% |
| Foreign Stock: | 1.7% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.6% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 22.4% |
Purchase Information
| Fund Family: | T. Rowe Price |
| Phone Number: | 800-225-5132 |
| Website: | www.troweprice.com |
| Status: | Open |
| Inception Date: | July 5, 2023 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.00% ( Rating : Low ) |
| Category Average Expense Ratio (%): | 1.37% |
| Share Class: | T. Rowe Price Hedged Equity Z |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
