THEQ vs VTI
T. Rowe Price Hedged Equity ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | THEQ | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.46% | 0.03% | |
| AUM | $40M | $666.9B | |
| Dividend Yield | 0.75% | 1.07% | |
| Holdings | 120 | 3,543 | |
| YTD Return | +8.16% | +13.14% | |
| 1Y Return | +13.49% | +22.35% | |
| 3Y Return (annualized) | - | +21.83% | |
| 5Y Return (annualized) | - | +12.01% | |
| Volatility (annualized) | 8.1% | 15.3% | |
| Max Drawdown | -8.1% | -56.6% | |
| Fund Family | T.Rowe Price | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 26, 2025 | May 24, 2001 |
THEQ vs VTI Performance
T. Rowe Price Hedged Equity ETF (THEQ) is a ETF from T.Rowe Price and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year THEQ returned +13.49% while VTI returned +22.35%. Year to date, THEQ is up 8.16% versus a gain of 13.14% for VTI.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 8.1% for THEQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -8.1% for THEQ and -56.6% for VTI. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
THEQ charges 0.46% per year while VTI charges 0.03%. On a $10,000 position that is $46 vs $3 annually, a gap of $43 per year that compounds over a long holding period. On income, THEQ currently yields 0.75% against 1.07% for VTI.
Holdings Overlap
THEQ and VTI share 104 holdings out of 2794 unique holdings combined, representing a 8.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, THEQ or VTI?
THEQ has an expense ratio of 0.46% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $43 per year of difference.
Which performed better, THEQ or VTI?
Over the past year THEQ returned +13.49% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (1 years), THEQ annualized +15.28% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, THEQ or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 8.1% for THEQ. Worst drawdown: THEQ -8.1% vs VTI -56.6%.
Should I hold both THEQ and VTI?
THEQ and VTI have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between THEQ and VTI?
THEQ and VTI share 104 common holdings with a 8.6% weight overlap. Combined, they hold 2794 unique securities.
Which pays a higher dividend, THEQ or VTI?
THEQ yields 0.75% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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