Parametric Factor Investing
Customized exposure, cost-efficient implementation
Built to your clients’ spec
Parametric makes it simple to construct risk-controlled exposures across a range of benchmarks, styles, and proprietary factor strategies—all supported and monitored by our dedicated research team. Choose from single- or multi-factor strategies, or build your own custom-blended factor strategy or tilt.
Clarity
Transparent and rules-based factor construction and methodology
Control
Strategies are run in SMAs and can be customized to client needs
Confidence
Factor premia supported and monitored by our dedicated research team
Three ways to invest
Single-factor strategies
We work to deliver high exposure to stocks exhibiting the characteristics you select.
Dividend yield
Companies with high predicted or historical dividend yield.
Value
Companies whose stock prices are low relative to their fundamental value.
Quality
Companies with high profitability, stable earnings, and low leverage.
Momentum
Companies exhibiting strong relative performance measured by recent 12-month returns.
Low volatility
Portfolio with lower volatility than the benchmark index.
Multi-factor strategies
Choose from sets of strategies made up of popular factor combinations.
Value, momentum, profitability
High exposure to companies with low price-to-book ratios, strong relative performance, and high profitability.
Value, size, profitability
Broad US portfolio with high exposure to companies with low price-to-book and price-to-earnings ratios, with an overweight to small- and mid-cap market segments.
Custom factor strategies
Customize exposures based on your clients’ needs.
Blend factor strategies
Create multi-factor exposures from a mix of Parametric factor strategies.
Blend factor strategies with cap-weighted indexes
Create tilted exposures by combining a Parametric factor strategy with a cap-weighted index.
Address a variety of client needs with highly customizable solutions.
Why Parametric?
$5B in factor investing AUM
13 dedicated regional teams
As of 9/30/2020
25 years of tax-management experience
Latest insights and research
Factor Investing is offered by Parametric Investment & Overlay Strategies. For additional information please visit the Disclosure page.