THEQ vs. PHDG

Last updated Jun 5, 2026

THEQ (T. Rowe Price Hedged Equity ETF) and PHDG (Invesco S&P 500 Downside Hedged ETF) are both Equity Hedged funds. THEQ is actively managed, while PHDG is passively managed. Over the past year, THEQ returned 18.16% vs 26.83% for PHDG. A 0.61 correlation means they provide meaningful diversification when combined. THEQ charges 0.46%/yr vs 0.39%/yr for PHDG.

Performance

THEQ vs. PHDG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Hedged Equity ETF (THEQ) and Invesco S&P 500 Downside Hedged ETF (PHDG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, THEQ achieves a 7.47% return, which is significantly lower than PHDG's 15.43% return.

THEQ

• 1D: 0.29%
• 1M: 3.15%
• YTD: 7.47%
• 6M: 7.42%
• 1Y: 18.16%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PHDG

• 1D: 1.44%
• 1M: 5.27%
• YTD: 15.43%
• 6M: 13.92%
• 1Y: 26.83%
• 3Y*: 11.64%
• 5Y*: 5.75%
• 10Y*: 7.32%

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

THEQ vs. PHDG - Yearly Performance Comparison

	2026 (YTD)	2025
THEQ T. Rowe Price Hedged Equity ETF	7.47%	12.87%
PHDG Invesco S&P 500 Downside Hedged ETF	15.43%	4.84%

Correlation

The correlation between THEQ and PHDG is 0.72, 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	0.72
Correlation (All Time) Calculated using the full available price history since Mar 28, 2025	0.61

The correlation between THEQ and PHDG shifts across timeframes, from 0.61 (all time) to 0.72 (1 year), reflecting how their relationship changes across market environments.

THEQ vs. PHDG - Sectors Allocation Comparison

Sectors	THEQ	PHDG
Financial Services	84.3%	11.9%
Technology	3.5%	35.1%
Healthcare	1.5%	8.7%
Consumer Defensive	0.9%	5.0%
Utilities	0.7%	2.4%
Communication Services	0.7%	11.0%
Industrials	0.6%	8.3%
Consumer Cyclical	0.6%	10.1%
Energy	0.4%	3.6%
Basic Materials	0.1%	1.8%
Real Estate	0.1%	1.9%

Return for Risk

THEQ vs. PHDG — Risk / Return Rank

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

THEQ

THEQ Risk / Return Rank: 65
THEQ Sharpe Ratio Rank: 64
THEQ Sortino Ratio Rank: 65
THEQ Omega Ratio Rank: 64
THEQ Calmar Ratio Rank: 61
THEQ Martin Ratio Rank: 71

PHDG

PHDG Risk / Return Rank: 92
PHDG Sharpe Ratio Rank: 90
PHDG Sortino Ratio Rank: 92
PHDG Omega Ratio Rank: 89
PHDG Calmar Ratio Rank: 94
PHDG Martin Ratio Rank: 94

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. PHDG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Hedged Equity ETF (THEQ) and Invesco S&P 500 Downside Hedged ETF (PHDG). 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.

	THEQ	PHDG	Difference
Sharpe ratio: Return per unit of total volatility	2.11	3.03	-0.92
Sortino ratio: Return per unit of downside risk	2.96	4.47	-1.51
Omega ratio: Gain probability vs. loss probability	1.38	1.56	-0.18
Calmar ratio: Return relative to maximum drawdown	2.95	7.65	-4.69
Martin ratio: Return relative to average drawdown	13.04	28.46	-15.42
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

THEQ vs. PHDG - Sharpe Ratio Comparison

The current THEQ Sharpe Ratio is 2.11, which is lower than the PHDG Sharpe Ratio of 3.03. The chart below compares the historical Sharpe Ratios of THEQ and PHDG, 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

	THEQ	PHDG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.11	3.03	-0.92
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.53	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.62	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.54	0.54	+1.00

Drawdowns

THEQ vs. PHDG - Drawdown Comparison

The maximum THEQ drawdown since its inception was -8.08%, smaller than the maximum PHDG drawdown of -17.70%. Use the drawdown chart below to compare losses from any high point for THEQ and PHDG.

Drawdown Indicators

	THEQ	PHDG	Difference
Max Drawdown Largest peak-to-trough decline	-8.08%	-17.70%	+9.62%
Max Drawdown (1Y) Largest decline over 1 year	-6.17%	-3.52%	-2.65%
Max Drawdown (3Y) Largest decline over 3 years	—	-14.78%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-17.06%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-17.06%	—
Current Drawdown Current decline from peak	-0.21%	0.00%	-0.21%
Average Drawdown Average peak-to-trough decline	-1.00%	-6.24%	+5.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.40%	0.95%	+0.45%

Volatility

THEQ vs. PHDG - Volatility Comparison

The current volatility for T. Rowe Price Hedged Equity ETF (THEQ) is 2.20%, while Invesco S&P 500 Downside Hedged ETF (PHDG) has a volatility of 3.19%. This indicates that THEQ experiences smaller price fluctuations and is considered to be less risky than PHDG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	THEQ	PHDG	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.20%	3.19%	-0.99%
Volatility (6M) Calculated over the trailing 6-month period	6.47%	6.77%	-0.30%
Volatility (1Y) Calculated over the trailing 1-year period	8.65%	8.91%	-0.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.54%	10.94%	+0.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.54%	11.93%	-0.39%

THEQ vs. PHDG - Expense Ratio Comparison

THEQ has a 0.46% expense ratio, which is higher than PHDG's 0.39% expense ratio.

Dividends

THEQ vs. PHDG - Dividend Comparison

THEQ's dividend yield for the trailing twelve months is around 0.74%, less than PHDG's 1.84% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PHDG Invesco S&P 500 Downside Hedged ETF	1.84%	2.10%	1.94%	1.93%	1.35%	0.44%	0.63%	1.80%	1.56%	1.83%	2.29%	1.64%
THEQ T. Rowe Price Hedged Equity ETF	0.74%	0.79%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both THEQ and PHDG in my portfolio?

THEQ and PHDG have a correlation of 0.72, 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 PHDG?

PHDG has higher volatility (3.19%) compared to THEQ (2.20%). In terms of maximum drawdown, THEQ dropped -8.08% vs PHDG's -17.70%.

Which ETF is better, THEQ or PHDG?

On 1-year performance, PHDG leads with 26.83% vs 18.16% for THEQ. On fees, PHDG is cheaper at 0.39% per year. On volatility, THEQ has been the lower-risk option at 2.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, THEQ or PHDG?

Over the 1-year period, PHDG has performed better with a 26.83% return vs 18.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, THEQ or PHDG?

PHDG is cheaper with a 0.39% expense ratio, compared with 0.46% for THEQ.

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

PHDG has the higher dividend yield at 1.84%, compared with 0.74% for THEQ.

What is the main difference between THEQ and PHDG?

They also come from different issuers: T. Rowe Price and Invesco. Their fees differ too: 0.46% for THEQ and 0.39% for PHDG.

Which has better risk-adjusted returns?

PHDG currently has the higher Sharpe Ratio (3.03 vs 2.11), 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.