T. Rowe Price Hedged Equity ETF (THEQ)

The T. Rowe Price Hedged Equity ETF (THEQ) is an actively managed exchange-traded fund from T. Rowe Price that combines a portfolio of U.S. large-cap stocks with an options strategy designed to reduce downside risk.

The equity portion is selected using T. Rowe Price's fundamental research. Alongside it, the fund uses options, such as buying put options for protection and selling call options to help pay for that protection, to create a hedge that limits losses in market declines while also capping some upside.

Its objective is to provide capital appreciation with lower volatility and smaller drawdowns than an unhedged equity portfolio.