No, you must peer the VNET, but not in the regular way. You must go to your hub and add connect the sd-wan subnet that way.
BGP is not a replacement for VNET peering. BGP provides the routes, but VNET peering provides the actual path for the traffic.
You should see routes of all VNETs accosiated to the hub once you enable peering, and they share the same route table. Remember that you most likely need to configure BGP multihop. For that to work you must provide a "static" route site to site -> local network that points to the subnet where the BGP peers are. After that you set multihop to for example 5.