The most important thing is that it fits and it's a good hat. I am an adult with a small hat size (6 5/8) and finding a hat is nonsense. I tend to look for "youth sized" hats because they are smaller. I'm usually disappointed with an adult hat that is sold simply as a youth hat. It's not like this. It has an adjustable strap with a buckle at the back, but it's not an all-around adult hat that won't fit anyone. It fits snugly and will be perfect for your toddler. Besides, it's a good hat. It's quite well made from 100% cotton twill with a sweatband and is slightly shorter than the adult size. It comes in many colors and I bought "putty" as I will be wearing it when working outside in the sun. But it should work great for any purpose for teens, tweens, adults with small heads and even toddlers as they can grow up on it quickly.
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