T. Rowe Price Hedged Equity ETF

THEQ

Market cap $34.3M

T. Rowe Price has added yet another fund to its growing suite of active ETFs. The firm launched its new innovation-focused ETF, TNXT, on the NASDAQ exchange today.

Most hedged equity ETFs wrap passive index exposure in options collars to manage risk, but T. Rowe Price Asset Management's new offering takes a different route by building its strategy around an actively managed stock fund.

This past week, T. Rowe Price Multi-Asset Portfolio Manager Sean McWilliams joined VettaFi's Alternatives Symposium to talk about the growing hedged equity ETF category.

Second quarter earnings season kicked off with an impressive showing from banks, coupled with a mostly in-line inflation print for June. However, stress fractures could be spreading across tariff-sensitive goods sectors, while U.S. tariff rates remain unpredictable and volatile.

Hedged equity strategies offer valuable drawdown mitigation, a boon in the volatile market environment of 2025. While sharp market declines create pain for equity portfolios, the impact is often magnified for those investors near or beginning retirement.

Wednesday brought another round of market sell-offs as stocks plummeted and bond yields rose. Newly developing as well as ongoing risks create heightened uncertainty for investors.