Factor investing is based on the premise that a set of common factors can explain the differences in stock returns. Popular factors include value, low volatility, dividend yield, quality, and momentum.
Parametric delivers efficient factor exposures that don't compromise other facets of the investment portfolio. We believe that factor-based investing can provide cost-effective, risk-controlled exposure with higher excess return potential compared with a market-based index due to systematic biases within the equity universe. We provide a consultative, high-touch approach with a team experienced in structuring and executing factor strategies.