THEQ vs. KSPY

Last updated Jun 24, 2026

THEQ (T. Rowe Price Hedged Equity ETF) and KSPY (Kraneshares Hedgeye Hedged Equity Index ETF) are both Equity Hedged funds. THEQ is actively managed, while KSPY is passively managed. Over the past year, THEQ returned 15.42% vs 16.25% for KSPY. Their correlation of 0.83 suggests significant overlap in exposure. THEQ charges 0.46%/yr vs 0.78%/yr for KSPY.

Performance

THEQ vs. KSPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Hedged Equity ETF (THEQ) and Kraneshares Hedgeye Hedged Equity Index ETF (KSPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with THEQ having a 5.28% return and KSPY slightly lower at 5.14%.

THEQ

• 1D: -0.81%
• 1M: -1.06%
• YTD: 5.28%
• 6M: 4.55%
• 1Y: 15.42%
• 3Y*: —
• 5Y*: —
• 10Y*: —

KSPY

• 1D: -1.10%
• 1M: 0.10%
• YTD: 5.14%
• 6M: 4.57%
• 1Y: 16.25%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

THEQ vs. KSPY - Yearly Performance Comparison

	2026 (YTD)	2025
THEQ T. Rowe Price Hedged Equity ETF	5.28%	12.72%
KSPY Kraneshares Hedgeye Hedged Equity Index ETF	5.14%	14.42%

Correlation

The correlation between THEQ and KSPY is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.81
Correlation (All Time) Calculated using the full available price history since Mar 27, 2025	0.83

The correlation between THEQ and KSPY has been stable across timeframes, ranging from 0.81 to 0.83 - a consistent structural relationship.

THEQ vs. KSPY - Sectors Allocation Comparison

Sectors	THEQ	KSPY
Technology	35.6%	38.4%
Financial Services	12.2%	11.0%
Communication Services	10.8%	10.8%
Consumer Cyclical	9.5%	10.0%
Healthcare	9.2%	8.4%
Industrials	7.7%	7.9%
Consumer Defensive	5.1%	4.6%
Energy	3.6%	3.2%
Utilities	2.9%	2.1%
Basic Materials	1.7%	1.7%
Real Estate	1.6%	1.8%

Return for Risk

THEQ vs. KSPY — Risk / Return Rank

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

THEQ

THEQ Risk / Return Rank: 57
THEQ Sharpe Ratio Rank: 55
THEQ Sortino Ratio Rank: 54
THEQ Omega Ratio Rank: 54
THEQ Calmar Ratio Rank: 56
THEQ Martin Ratio Rank: 64

KSPY

KSPY Risk / Return Rank: 81
KSPY Sharpe Ratio Rank: 75
KSPY Sortino Ratio Rank: 78
KSPY Omega Ratio Rank: 86
KSPY Calmar Ratio Rank: 77
KSPY Martin Ratio Rank: 90

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.

THEQ vs. KSPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Hedged Equity ETF (THEQ) and Kraneshares Hedgeye Hedged Equity Index ETF (KSPY). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	THEQ	KSPY	Difference
Sharpe ratio: Return per unit of total volatility	1.71	2.20	-0.49
Sortino ratio: Return per unit of downside risk	2.39	3.17	-0.78
Omega ratio: Gain probability vs. loss probability	1.31	1.48	-0.17
Calmar ratio: Return relative to maximum drawdown	2.51	3.66	-1.15
Martin ratio: Return relative to average drawdown	10.61	18.92	-8.31

THEQ vs. KSPY - Sharpe Ratio Comparison

The current THEQ Sharpe Ratio is 1.71, which is comparable to the KSPY Sharpe Ratio of 2.20. The chart below compares the historical Sharpe Ratios of THEQ and KSPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

THEQ vs. KSPY - Drawdown Comparison

The maximum THEQ drawdown since its inception was -8.20%, smaller than the maximum KSPY drawdown of -11.67%. Use the drawdown chart below to compare losses from any high point for THEQ and KSPY.

Drawdown Indicators

	THEQ	KSPY	Difference
Max Drawdown Largest peak-to-trough decline	-8.20%	-11.67%	+3.47%
Max Drawdown (1Y) Largest decline over 1 year	-6.17%	-4.46%	-1.71%
Current Drawdown Current decline from peak	-2.24%	-1.60%	-0.64%
Average Drawdown Average peak-to-trough decline	-1.04%	-1.17%	+0.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.46%	0.86%	+0.60%

Volatility

THEQ vs. KSPY - Volatility Comparison

T. Rowe Price Hedged Equity ETF (THEQ) has a higher volatility of 3.35% compared to Kraneshares Hedgeye Hedged Equity Index ETF (KSPY) at 2.91%. This indicates that THEQ's price experiences larger fluctuations and is considered to be riskier than KSPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	THEQ	KSPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.35%	2.91%	+0.44%
Volatility (6M) Calculated over the trailing 6-month period	7.05%	6.07%	+0.98%
Volatility (1Y) Calculated over the trailing 1-year period	9.08%	7.44%	+1.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.66%	10.57%	+1.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.66%	10.57%	+1.09%

THEQ vs. KSPY - Expense Ratio Comparison

THEQ has a 0.46% expense ratio, which is lower than KSPY's 0.78% expense ratio.

Dividends

THEQ vs. KSPY - Dividend Comparison

THEQ's dividend yield for the trailing twelve months is around 0.75%, less than KSPY's 5.86% yield.

Position	TTM	2025	2024
KSPY Kraneshares Hedgeye Hedged Equity Index ETF	5.86%	6.16%	1.31%
THEQ T. Rowe Price Hedged Equity ETF	0.75%	0.79%	0.00%

Frequently Asked Questions

Can I hold both THEQ and KSPY in my portfolio?

THEQ and KSPY have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, THEQ or KSPY?

THEQ has higher volatility (3.35%) compared to KSPY (2.91%). In terms of maximum drawdown, THEQ dropped -8.20% vs KSPY's -11.67%.

Which ETF is better, THEQ or KSPY?

On 1-year performance, KSPY leads with 16.25% vs 15.42% for THEQ. On fees, THEQ is cheaper at 0.46% per year. On volatility, KSPY has been the lower-risk option at 2.91%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, THEQ or KSPY?

Over the 1-year period, KSPY has performed better with a 16.25% return vs 15.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, THEQ or KSPY?

THEQ is cheaper with a 0.46% expense ratio, compared with 0.78% for KSPY.

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

KSPY has the higher dividend yield at 5.86%, compared with 0.75% for THEQ.

What is the main difference between THEQ and KSPY?

They also come from different issuers: T. Rowe Price and KraneShares. Their fees differ too: 0.46% for THEQ and 0.78% for KSPY.

Which has better risk-adjusted returns?

KSPY currently has the higher Sharpe Ratio (2.20 vs 1.71), 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.