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Factor Investing

Factors, including size, value, momentum, quality, low volatility, and dividend yield can provide additional return opportunities but can also introduce unintended sector bets. Learn more about Parametric’s flexible approach to factor investing.

Strategy Goals

Research has shown that much of an investor’s active return can be attributed to factor exposures, most notably size, value, momentum, quality, low volatility, and dividend yield. Introducing a systematic bias towards these factors has been found to deliver an attractive risk and return profile, but also introduces additional turnover which may erode some of that return. Parametric’s approach to factor-based investing is designed to help client’s keep more of their investment return through efficient implementation and systematic tax-management, if applicable.

Investment Philosophy


Parametric Factor Investing

Unintended Sector and Factor Exposures

Explicit active risk controls to reduce unintended bets and isolate risk factor premium


Strategies are run in separate accounts and can be customized to the needs of the client

Tax Efficiency

Process designed to be amenable to tax management (loss harvesting and gain deferral)

Factor Investing is offered by Parametric Investment & Overlay Strategies.  For additional information please visit the Disclosure page.

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