Picture of a grass field


Parametric's Commodity Strategy allows investors to achieve greater diversification than traditional commodity benchmarks through rules-based methodologies designed to be intuitive.

Commodity intro icon


A well-diversified portfolio is more than just equities and fixed income. An allocation to commodities helps diversify client portfolios and has historically provided protection during inflationary periods.

Parametric is a 4.7-exempt commodity trading advisor and offers the strategy described in a separately managed account format to investors who meet the definition of a qualified eligible person, as defined by CFTC Regulation 4.7. Parametric serves as a subadvisor to investment products offered and distributed by its affiliate, Eaton Vance Distributors, Inc., a registered broker-dealer. We encourage you to contact your financial advisor.

Investing in a commodity strategy involves risk. All investments are subject to loss.  Learn more.

Explore more systematic alpha solutions

Why choose Parametric?


Total firm AUM


Commodity AUM


Investment professionals


Years of equity, derivative, and strategy experience

As of 3/31/2024

How it works

Parametric Commodity aims to avoid concentrations by diversifying across multiple commodity types and sectors, including significant allocations to nonindex commodities. This gives investors access to underrepresented commodities and increased diversification.

Finally, we modify these target weights to reduce unintentional concentrations that might be introduced otherwise.

We maintain target weights and allocations through regular rebalancing. These rebalancing activities exploit the volatility and low correlations of commodities by systematically selling when prices go up and buying when they go down, seeking to harvest a rebalancing alpha.
We avoid risky investments by investing collateral in US Treasury instruments. This arises from the belief that returns should be driven by commodity exposures, not the collateral pool.

Intended benefits of Commodity Strategy

Diversification icon


Learn more >>

Our Commodity Strategy is highly diversified across commodity types and sectors, including commodities not traditionally included in most indexes. 

Exposure icon


Learn more >>

Our long-only strategy lets investors fully capture the characteristics of the commodity asset class.

Transparency icon


Learn more >>

Our Commodity Strategy uses an easy-to-understand, rules-based methodology to avoid human bias. 

diversification icon

Inflation protection

Learn more >>

Commodity prices have historically responded to inflationary pressures and may help protect investors during inflationary periods.

Get in touch

Want to know more about our Commodity solutions? Complete our contact form, and a representative will respond shortly.

More to explore

Blog post Read more
Tag icon
Commodity, Inflation, Market activity, Institutional investor, Wealth manager, +2
Blog post Read more
Tag icon
Commodity, Inflation, Market activity, Institutional investor, Wealth manager, +2
Blog post Read more
Tag icon
Commodity, Volatility, Institutional investor, Wealth manager, +1