At a glance
THEQ charges 0.46% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $36.6M in assets, the 8th largest of that group. Its ten largest positions make up 84.3% of the fund, out of 113 in all.
The short version
T. Rowe Price Hedged Equity ETF (THEQ) is an actively managed fund of funds. As of June 30, 2026, 81.9% of its assets were in the T. Rowe Price U.S. Equity Research ETF (TSPA), alongside S&P 500 put options and futures meant to soften steep market drops. Its 0.46% expense ratio is well below the 0.86% average of the buffer ETFs it is compared with here, but its track record is very short.
Price history
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THEQ — over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| THEQ price data to Oct 27, 2026 | +3.4% | — | — | — | — | — |
- The deepest fall in its price history was 2.8% (Aug 13, 2026 to Sep 16, 2026), not yet recovered.
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
No distribution history is available for this fund.
Distributions through Oct 27, 2026.What's inside
As of Jun 30, 2026, the fund held 113 securities; the ten largest made up 84.25% of assets, and 17.45% sat in cash and money-market holdings.
| Fund held | Weight | |
|---|---|---|
| T ROWE PRICE US EQUITY RESEARC T ROWE PRICE US EQY RESEARCH | 81.90% | |
| U S TREASURY BILL Bonds and notes | 0.35% | |
| TREASURY BILL Bonds and notes | 0.30% | |
| CISCO SYSTEMS INC | 0.28% | |
| CHUBB LTD | 0.25% | |
| MOTOROLA SOLUTIONS INC | 0.25% | |
| MERCK & CO. INC. | 0.23% | |
| DUKE ENERGY CORP | 0.22% | |
| EXXON MOBIL CORP | 0.22% | |
| CENCORA INC | 0.22% | |
| NVIDIA CORP | 0.22% | |
| JOHNSON & JOHNSON | 0.21% | |
| COLGATE-PALMOLIVE CO | 0.21% | |
| MCKESSON CORP | 0.21% | |
| TELEDYNE TECHNOLOGIES INC | 0.20% |
By country
United States 92.68%Switzerland 0.25%Ireland 0.24%Canada 0.15%Israel 0.05%By asset type
Stocks 92.55%Bonds and notes 0.82%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $265K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +6.61%, +3.34%, -0.40%.
How it works
THEQ seeks long-term capital growth. It normally keeps at least 80% of net assets in stocks, mostly through other ETFs and especially the T. Rowe Price U.S. Equity Research ETF (TSPA). TSPA tries to look broadly like the S&P 500 while aiming to beat it. Its managers pick stocks "bottom up," which means they judge individual companies rather than economic trends. Sector weights come from those picks, so the fund can lean heavily on information technology. As of June 30, 2026, TSPA made up 81.9% of THEQ. The fund also owned small direct stakes in companies such as Cisco, Chubb and Motorola Solutions, each about 0.25% of assets.
On top of the stocks, a hedging overlay uses equity options, index futures and interest rate futures to limit tail risk, which is the risk of large losses in a sharp sell-off. A put option gains value when the market falls below a set level. As of June 30, 2026, the fund held S&P 500 puts expiring between April and June 2027, with strike levels from 5,700 to 6,500, plus 10-year Treasury note futures and S&P 500 E-mini futures. Managers change the hedge as market risk changes. Unlike a buffer fund, THEQ does not promise a set level of protection over a set period.
The fund is nondiversified, so a single holding can make up a large share of assets. About 17% of assets were held in cash as of June 30, 2026. Portfolio turnover was 15.3%.
What it really costs
- THEQ charges 0.46% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- The fee includes a 0.27% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $47 in the first year and $579 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| THEQ | $47 | $148 | $258 | $579 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
It is mostly a U.S. large-company stock fund with a hedge designed to reduce volatility and limit losses in steep market declines.
THEQ could give a retirement portfolio U.S. large-company stock exposure with built-in downside hedging. The weak spot is evidence. The fund launched on March 26, 2025, so it missed the 2008, 2020 and 2022 declines, and its price history here starts on June 9, 2026. Its deepest drop in that data was 2.8%, from August 13 to September 16, 2026, and it had not recovered as of October 27, 2026. That says little about how the hedge would hold up in a real bear market, which matters for anyone who may need to sell shares in a bad year.
THEQ paid no distributions in the 12 months to October 27, 2026, and it pays annually, so it is not an income source. In the SEC's standard example, the cost on $10,000 is $47 after one year and $579 after ten. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want mostly U.S. large-company stocks, held through TSPA, with S&P 500 put options aimed at cushioning steep market drops.
- Cost-conscious investors who want downside protection: the 0.46% expense ratio is below the 0.86% average of the buffer ETFs it is compared with.
- Investors who are comfortable with a hedge the managers adjust, rather than a fixed buffer and cap that resets on a set date.
Look elsewhere if
- Investors who want a long track record: the fund launched in March 2025 and has no history through the 2008, 2020 or 2022 bear markets.
- Investors who need income: THEQ paid no distributions in the 12 months to October 27, 2026, and it pays annually.
- Investors wary of small funds: net assets were about $36.6 million as of June 30, 2026, the smallest of the eight funds compared.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| THEQ this fund | 0.46% | $36.6M | — | — |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Is THEQ a buffer ETF?
No. THEQ is a hedged equity fund, not a defined-outcome buffer ETF. Buffer funds such as the FT Vest Laddered Buffer ETF (BUFR) aim to absorb a set slice of losses over a fixed period, usually in exchange for a cap on gains. THEQ's managers instead adjust a mix of S&P 500 put options, index futures and Treasury futures as market conditions change. It has no stated loss limit and no upside cap, so its protection is flexible but not guaranteed.
What does THEQ invest in?
Mostly another T. Rowe Price fund. As of June 30, 2026, 81.9% of THEQ's assets were in the T. Rowe Price U.S. Equity Research ETF (TSPA). TSPA picks large U.S. stocks to resemble the S&P 500 while trying to beat it. THEQ also held small direct stakes in companies such as Cisco, Chubb, Merck and Nvidia, about 17% in cash, some Treasury bills, and S&P 500 put options expiring in 2027.
THEQ vs BUFR: what's the difference?
They protect against losses in different ways and differ greatly in cost and size. BUFR, the FT Vest Laddered Buffer ETF, is a defined-outcome buffer fund with a 0.95% expense ratio and about $10.5 billion in net assets as of August 31, 2026. THEQ uses an actively managed options and futures hedge, costs 0.46%, and had about $36.6 million as of June 30, 2026. BUFR returned 11.6% over the year to October 27, 2026; THEQ's price history is too short for a one-year figure.
Does THEQ pay dividends?
Not in the 12 months to October 27, 2026. THEQ made no distributions in that period, so its trailing yield was 0%. When it does pay, it distributes annually. The fund's stated objective is long-term capital growth, and most of its money sits in a U.S. stock fund, TSPA. It is designed for growth with downside hedging, not for steady cash payouts, so income-focused investors may want to compare it with dedicated income funds.
What is THEQ's expense ratio?
THEQ's expense ratio is 0.46%, according to its prospectus filed February 25, 2026. In the SEC's standard example ($10,000 invested, a 5% annual return, shares sold at the end of each period), total costs come to about $47 after one year, $148 after three, $258 after five and $579 after ten. It is the cheapest of the eight funds compared here. The buffer funds in that group averaged 0.86%.