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.

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Clarity

Transparent and rules-based factor construction and methodology

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Control

Strategies are run in SMAs and can be customized to client needs

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Confidence

Factor premia supported and monitored by our dedicated research team

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Three ways to invest

Single-factor strategies

We work to deliver high exposure to stocks exhibiting the characteristics you select.

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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.

Discover how we can help you reach your goals.

Why Parametric?

Assets Under Management icon

$6.2B in factor investing AUM^*

Dedicated teams

Six dedicated regional teams

* As of 12/31/2019

Parametric 25 years of experience

25 years of tax-management experience

Latest insights and research

See all insights and research >

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

Investment advisory services offered through Parametric Portfolio Associates^® LLC ("Parametric"), an investment advisor registered with the US Securities and Exchange Commission.

Parametric (National Registration Database No. 42850) is also registered as a Portfolio Manager with the securities regulatory authorities in certain provinces of Canada 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.

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