US Equity Income

Our US Equity Income strategy seeks to build a diversified portfolio of durable dividend payers in order to provide a steady source of dividend income while outperforming the NASDAQ Dividend Achievers Select index on a total return basis.

Strategy goals

The Parametric US Equity Income strategy consists of a diversified portfolio of dividend-paying U.S. equity securities. The strategy seeks to build a diversified portfolio of durable dividend payers in order to provide a steady source of dividend income while outperforming the S&P 500^® Index on a total return basis. The strategy identifies an initial universe of sensible dividend payers and seeks to avoid the consequences of concentrated allocations by equally weighting sectors and securities within each sector.

Investment philosophy

We utilize an engineered and disciplined approach to construct a portfolio of durable dividend payers.

Sector Allocation

Equally weight all nine sectors
Technology and Telecommunications combined, due to lack of dividend payers

Security Filtering/Ranking

Filter Russell 3000 universe
Rank on yield and volatility metrics within sector

Security Allocation

Within each sector, equally weight the top 20-25 ranked securities
~200 securities, equally weighted

Rebalance

On a monthly basis, rebalance the portfolio back to equal weights
Reconstitute membership annually

How to invest and related products

The Parametric US Equity Income Strategy is designed to be implemented in a separately managed account (SMA) maintained by a qualified custodian. Investors should contact their financial advisor to establish an SMA. Parametric also subadvises a fund with a similar strategy, offered and distributed by our affiliate, Eaton Vance Distributors Inc., a registered broker-dealer. Learn more*

*We provide a link to the Eaton Vance website for your convenience only. It is for informational purposes only and is not an offer to buy or sell any security. Although Parametric is an affiliate of Eaton Vance, Parametric does not administer the website or control any of its content. Accordingly, this link is provided as is, without representation or warranty, express or implied, as to the accuracy of such content or its completeness or timeliness, all of which (including, without limitation, any implied warranties of merchantability or fitness for a particular purpose) Parametric expressly disclaims. This link’s appearance on Parametric’s website should not imply our endorsement of the linked site or its content. Parametric is not responsible for your use of the linked site, its content, or any other resources (including, without limitation, other linked sites and their contents) accessible through it. If you choose to leave this website and visit the linked site, you will be subject to its terms of use and privacy policies. By continuing to the linked site, you acknowledge and agree to the foregoing.

For additional information please visit the Disclosure page.

Connect with our team on this strategy

Investment advisory services offered through Parametric Portfolio Associates^® LLC ("Parametric"), an investment advisor registered with the US Securities and Exchange Commission (CRD #114310). Parametric is also registered as a portfolio manager with the securities regulatory authorities in certain provinces of Canada (National Registration Database No. 42850) with regard to specific products and strategies. Parametric provides advisory services directly to institutional investors and indirectly to individual investors through financial intermediaries. The information on this website does not constitute an offer to sell, or a solicitation of an offer to purchase, securities in any jurisdiction to any person to whom it is not lawful to make such an offer. Investing entails risks, and there can be no assurance that Parametric (and its affiliates) will achieve profits or avoid incurring losses. All investments are subject to potential loss of principal. Parametric does not provide tax or legal advice. Prospective investors should consult with a tax or legal advisor before making any investment decision. Please refer to the disclosure page for important information about investments and risks.

S&P Dow Jones Indices are a product of S&P Dow Jones Indices LLC (“S&P DJI”) and have been licensed for use. S&P^® indexes are registered trademarks of S&P DJI; Dow Jones^® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); S&P DJI, Dow Jones, and their respective affiliates do not sponsor, endorse, sell, or promote Parametric and its strategies, will not have any liability with respect thereto, and do not have any liability for any errors, omissions, or interruptions of the S&P Dow Jones Indices.