THEQ vs. SCEP

Last updated Jun 5, 2026

THEQ (T. Rowe Price Hedged Equity ETF) and SCEP (Sterling Capital Hedged Equity Premium Income ETF) are both Equity Hedged funds. Both are actively managed. Their correlation of 0.87 suggests significant overlap in exposure. THEQ charges 0.46%/yr vs 0.65%/yr for SCEP.

Performance

THEQ vs. SCEP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Hedged Equity ETF (THEQ) and Sterling Capital Hedged Equity Premium Income ETF (SCEP). 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 higher than SCEP's 4.03% return.

THEQ

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

SCEP

• 1D: 0.11%
• 1M: 1.81%
• YTD: 4.03%
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

THEQ vs. SCEP - Yearly Performance Comparison

	2026 (YTD)	2025
THEQ T. Rowe Price Hedged Equity ETF	7.47%	-0.50%
SCEP Sterling Capital Hedged Equity Premium Income ETF	4.03%	-0.50%

Correlation

The correlation between THEQ and SCEP is 0.87, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Dec 12, 2025	0.87

Return for Risk

THEQ vs. SCEP — 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

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. SCEP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Hedged Equity ETF (THEQ) and Sterling Capital Hedged Equity Premium Income ETF (SCEP). 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	SCEP	Difference
Sharpe ratio: Return per unit of total volatility	2.11	—	—
Sortino ratio: Return per unit of downside risk	2.96	—	—
Omega ratio: Gain probability vs. loss probability	1.38	—	—
Calmar ratio: Return relative to maximum drawdown	2.95	—	—
Martin ratio: Return relative to average drawdown	13.04	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	THEQ	SCEP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.11	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.54	0.78	+0.76

Drawdowns

THEQ vs. SCEP - Drawdown Comparison

The maximum THEQ drawdown since its inception was -8.08%, which is greater than SCEP's maximum drawdown of -7.25%. Use the drawdown chart below to compare losses from any high point for THEQ and SCEP.

Drawdown Indicators

	THEQ	SCEP	Difference
Max Drawdown Largest peak-to-trough decline	-8.08%	-7.25%	-0.83%
Max Drawdown (1Y) Largest decline over 1 year	-6.17%	—	—
Current Drawdown Current decline from peak	-0.21%	-0.05%	-0.16%
Average Drawdown Average peak-to-trough decline	-1.00%	-1.57%	+0.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.40%	—	—

Volatility

Volatility by Period

	THEQ	SCEP	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.20%	—	—
Volatility (6M) Calculated over the trailing 6-month period	6.47%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	8.65%	9.82%	-1.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.54%	9.82%	+1.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.54%	9.82%	+1.72%

THEQ vs. SCEP - Expense Ratio Comparison

THEQ has a 0.46% expense ratio, which is lower than SCEP's 0.65% expense ratio.

Dividends

THEQ vs. SCEP - Dividend Comparison

THEQ's dividend yield for the trailing twelve months is around 0.74%, less than SCEP's 3.24% yield.

Position	TTM	2025
SCEP Sterling Capital Hedged Equity Premium Income ETF	3.24%	0.38%
THEQ T. Rowe Price Hedged Equity ETF	0.74%	0.79%

Frequently Asked Questions

Can I hold both THEQ and SCEP in my portfolio?

THEQ and SCEP have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, THEQ or SCEP?

On fees, THEQ is cheaper at 0.46% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, THEQ or SCEP?

THEQ is cheaper with a 0.46% expense ratio, compared with 0.65% for SCEP.

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

SCEP has the higher dividend yield at 3.24%, compared with 0.74% for THEQ.

What is the main difference between THEQ and SCEP?

They also come from different issuers: T. Rowe Price and Sterling Capital. Their fees differ too: 0.46% for THEQ and 0.65% for SCEP.