RFLR vs. THEQ

Last updated Jun 4, 2026

RFLR (Innovator U.S. Small Cap Managed Floor ETF) and THEQ (T. Rowe Price Hedged Equity ETF) are both Equity Hedged funds. Both are actively managed. Over the past year, RFLR returned 25.97% vs 17.85% for THEQ. A 0.67 correlation means they provide meaningful diversification when combined. RFLR charges 0.89%/yr vs 0.46%/yr for THEQ.

Performance

RFLR vs. THEQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator U.S. Small Cap Managed Floor ETF (RFLR) and T. Rowe Price Hedged Equity ETF (THEQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RFLR achieves a 7.99% return, which is significantly higher than THEQ's 7.16% return.

RFLR

• 1D: -1.05%
• 1M: 2.08%
• YTD: 7.99%
• 6M: 8.36%
• 1Y: 25.97%
• 3Y*: —
• 5Y*: —
• 10Y*: —

THEQ

• 1D: -0.50%
• 1M: 3.35%
• YTD: 7.16%
• 6M: 7.07%
• 1Y: 17.85%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

RFLR vs. THEQ - Yearly Performance Comparison

	2026 (YTD)	2025
RFLR Innovator U.S. Small Cap Managed Floor ETF	7.99%	17.82%
THEQ T. Rowe Price Hedged Equity ETF	7.16%	12.87%

Correlation

The correlation between RFLR and THEQ is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.67
Correlation (All Time) Calculated using the full available price history since Mar 28, 2025	0.67

The correlation between RFLR and THEQ has been stable across timeframes, ranging from 0.67 to 0.67 - a consistent structural relationship.

RFLR vs. THEQ - Sectors Allocation Comparison

Sectors	RFLR	THEQ
Financial Services	17.0%	84.3%
Technology	16.3%	3.5%
Healthcare	15.4%	1.5%
Industrials	14.7%	0.6%
Consumer Cyclical	9.7%	0.6%
Real Estate	6.3%	0.1%
Energy	6.2%	0.4%
Basic Materials	4.3%	0.1%
Consumer Defensive	2.5%	0.9%
Utilities	2.5%	0.7%
Communication Services	1.9%	0.7%

Return for Risk

RFLR vs. THEQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

RFLR

RFLR Risk / Return Rank: 72
RFLR Sharpe Ratio Rank: 65
RFLR Sortino Ratio Rank: 68
RFLR Omega Ratio Rank: 64
RFLR Calmar Ratio Rank: 84
RFLR Martin Ratio Rank: 81

THEQ

THEQ Risk / Return Rank: 64
THEQ Sharpe Ratio Rank: 63
THEQ Sortino Ratio Rank: 64
THEQ Omega Ratio Rank: 63
THEQ Calmar Ratio Rank: 59
THEQ Martin Ratio Rank: 70

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

RFLR vs. THEQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator U.S. Small Cap Managed Floor ETF (RFLR) and T. Rowe Price Hedged Equity ETF (THEQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	RFLR	THEQ	Difference
Sharpe ratio Return per unit of total volatility	2.13	2.07	+0.06
Sortino ratio Return per unit of downside risk	3.06	2.92	+0.15
Omega ratio Gain probability vs. loss probability	1.38	1.37	0.00
Calmar ratio Return relative to maximum drawdown	4.51	2.90	+1.60
Martin ratio Return relative to average drawdown	15.89	12.82	+3.07
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RFLR vs. THEQ - Sharpe Ratio Comparison

The current RFLR Sharpe Ratio is 2.13, which is comparable to the THEQ Sharpe Ratio of 2.07. The chart below compares the historical Sharpe Ratios of RFLR and THEQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	RFLR	THEQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.13	2.07	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	1.09	1.52	-0.43

Drawdowns

RFLR vs. THEQ - Drawdown Comparison

The maximum RFLR drawdown since its inception was -15.48%, which is greater than THEQ's maximum drawdown of -8.08%. Use the drawdown chart below to compare losses from any high point for RFLR and THEQ.

Drawdown Indicators

	RFLR	THEQ	Difference
Max Drawdown Largest peak-to-trough decline	-15.48%	-8.08%	-7.40%
Max Drawdown (1Y) Largest decline over 1 year	-5.79%	-6.17%	+0.38%
Current Drawdown Current decline from peak	-1.05%	-0.50%	-0.55%
Average Drawdown Average peak-to-trough decline	-3.85%	-1.00%	-2.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.64%	1.40%	+0.24%

Volatility

RFLR vs. THEQ - Volatility Comparison

Innovator U.S. Small Cap Managed Floor ETF (RFLR) has a higher volatility of 3.70% compared to T. Rowe Price Hedged Equity ETF (THEQ) at 2.22%. This indicates that RFLR's price experiences larger fluctuations and is considered to be riskier than THEQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RFLR	THEQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.70%	2.22%	+1.48%
Volatility (6M) Calculated over the trailing 6-month period	8.33%	6.47%	+1.86%
Volatility (1Y) Calculated over the trailing 1-year period	12.28%	8.65%	+3.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.19%	11.56%	+0.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.19%	11.56%	+0.63%

RFLR vs. THEQ - Expense Ratio Comparison

RFLR has a 0.89% expense ratio, which is higher than THEQ's 0.46% expense ratio.

Dividends

RFLR vs. THEQ - Dividend Comparison

RFLR's dividend yield for the trailing twelve months is around 0.62%, less than THEQ's 0.74% yield.

Position	TTM	2025	2024
RFLR Innovator U.S. Small Cap Managed Floor ETF	0.62%	0.67%	0.26%
THEQ T. Rowe Price Hedged Equity ETF	0.74%	0.79%	0.00%

Frequently Asked Questions

Can I hold both RFLR and THEQ in my portfolio?

RFLR and THEQ have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RFLR or THEQ?

RFLR has higher volatility (3.70%) compared to THEQ (2.22%). In terms of maximum drawdown, RFLR dropped -15.48% vs THEQ's -8.08%.

Which ETF is better, RFLR or THEQ?

On 1-year performance, RFLR leads with 25.97% vs 17.85% for THEQ. On fees, THEQ is cheaper at 0.46% per year. On volatility, THEQ has been the lower-risk option at 2.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, RFLR or THEQ?

Over the 1-year period, RFLR has performed better with a 25.97% return vs 17.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RFLR or THEQ?

THEQ is cheaper with a 0.46% expense ratio, compared with 0.89% for RFLR.

Which ETF pays a higher dividend yield, RFLR or THEQ?

THEQ has the higher dividend yield at 0.74%, compared with 0.62% for RFLR.

What is the main difference between RFLR and THEQ?

They also come from different issuers: Innovator and T. Rowe Price. Their fees differ too: 0.89% for RFLR and 0.46% for THEQ.

Which has better risk-adjusted returns?

RFLR currently has the higher Sharpe Ratio (2.13 vs 2.07), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.