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 over a full market cycle.
There is no guarantee that the investment objective will be achieved. The targeted return is hypothetical and should not be relied upon to make investment decisions. The targeted return is aspirational in nature and is not based on criteria and assumptions. All investments are subject to the risk of loss. See disclosures for additional information.
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How it works
Intended benefits of Emerging Markets
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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.
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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.
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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?
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More to explore
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