Emerging Markets
For institutional investors
Parametric’s Emerging Markets strategy positions portfolios to capture the long-term growth potential in emerging markets with less volatility than indexes typically exhibit.
Traditionally, emerging market indexes tend to have concentrated country allocation, with 75% of holdings in just five countries. Parametric’s strategy avoids the concentrated security- and country-level exposures inherent in other emerging market strategies using our equal-weight methodology. We seek to outperform the MSCI Emerging Markets Index by 2% to 3% over a full market cycle.
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How it works
Intended benefits of Emerging Markets
Equal-weight methodology
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Our modified equal-weight methodology aims to reduce imbalances. Incorporating an underweight to the largest markets and an overweight to smaller emerging-market countries can reduce volatility and increase potential returns.
Top-down approach
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Our approach follows a rules-based process that produces transparent outcomes. We aim to capture the long-term growth potential of emerging markets by avoiding the risk inherent to active management and concentration risks of mainstream indexes.
Disciplined rebalancing
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Disciplined rebalancing to predefined target weights results in a “buy-low/sell-high” orientation that can enhance returns and minimize trading costs.
Why choose Parametric?
$376B+
Total firm
AUM
$2.1B
Emerging markets
AUM
27
Years of emerging
markets experience
As of 6/30/2022
Get in touch
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More to explore
Understanding the Zigs and Zags of Emerging Markets
by Greg Liebl, Director, Investment Strategy
August 2, 2022
We believe there are solid reasons to own emerging market equities as a means of diversifying portfolios across markets, minimizing risk, and maximizing growth opportunities.
Finding Balance in Diversified Index Portfolios
by Jennifer Sireklove, Managing Director, Investment Strategy
February 28, 2022
How can index investors build accessible, diversified portfolios that achieve their goals?
The Parametric Emerging Markets Strategy: A Third Way of Emerging Markets Investing
by Greg Liebl, Director, Investment Strategy
September 23, 2021
As investing in emerging markets becomes more popular, there are disadvantages to both active and passive investing strategies. We suggest a third way.