THEQ: T. ROWE PRICE HEDGED EQUITY ETF
What this ETF is trying to do
THEQ, the T. Rowe Price Hedged Equity ETF, is an exchange-traded fund designed to provide exposure to equity markets. Based on its top holdings, a large portion of the fund is held in the T. Rowe Price US Equity Research ETF. The fund holds a variety of different assets, including stocks from companies like Microsoft Corp and NVIDIA Corp, as well as cash in US Dollars.
What the numbers show
As of October 9, 2026, the current price of THEQ is $30.64. Looking back at history, the estimated price from roughly one year ago was approximately $28.00.
When looking at performance, it is important to distinguish between price return and total return:
• Price Return: This measures only the change in the share price. The year-to-date (YTD) price return is approximately 9.50%, and the one-year price return is approximately 9.43%.
• Total Return: This includes both the share price change and any distributions paid out. The one-year total return is approximately 10.29%, and the YTD total return is approximately 9.50%.
Income and distribution explanation
THEQ provides a distribution yield of approximately 0.73%. The trailing distributions were $0.22 per share. It is important to note that the distribution frequency is described as "irregular" or "less frequent," with only one payout recorded in the last 12 months. Because the frequency is irregular, investors should not expect a steady monthly or quarterly income stream.
NAV erosion explanation
NAV erosion refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets) over time. The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, regarding price-based evidence, the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.
Pros
• Positive Returns: The fund has shown both positive YTD and one-year price returns.
• Low Erosion Risk: The fund's erosion-risk score suggests there has been no significant price deterioration.
• Diversified Holdings: The fund holds 117 total holdings, including various large companies.
Cons
• Irregular Income: The distributions are not frequent, which may make it difficult for investors who rely on regular cash payments.
• Lower Yield: The distribution yield is relatively low at approximately 0.73%.
Beginner takeaway
THEQ has shown positive price and total returns over the past year. While it does pay distributions, they do not happen on a regular schedule. Investors should remember that a distribution yield tells you how much cash was paid out relative to the price, but it is not the same as the total return. Always look at both the share price movement and the distributions to understand how a fund is performing.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | T. ROWE PRICE US EQUITY RESEARCH ETF | TSPA | 79.25% |
| 2 | T ROWE PRICE RES INV FD MUTUAL FUND | n/a | 4.81% |
| 3 | US DOLLAR | n/a | 1.12% |
| 4 | MICROSOFT CORP | MSFT | 0.26% |
| 5 | MOTOROLA SOLUTIONS INC | MSI | 0.26% |
| 6 | MERCK & CO INC | MRK | 0.25% |
| 7 | CHUBB LTD | CB | 0.24% |
| 8 | CISCO SYSTEMS INC | CSCO | 0.24% |
| 9 | MCKESSON CORP | MCK | 0.24% |
| 10 | NVIDIA CORP | NVDA | 0.24% |