Factors
For institutional investors
Parametric's factor investing strategies provide cost-efficient, risk-controlled access to a suite of customizable strategies across US and international equities.
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.
Explore more custom solutions for institutional investors
Why choose Parametric?
How it works
Three ways to invest
Single factors
Parametric identifies stocks that exhibit these individual characteristics.
Multifactor combinations
Choose from premade combinations of popular factors.
Custom factor strategies
Build your own customized exposures through a blend of strategies based on your organization’s needs or by combining factor strategies with a cap-weighted index.
Intended benefits of factor strategies
Research-based portfolio construction
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Our thoughtful approach to factor design and research-based portfolio construction doesn’t compromise other aspects of investment management.
Predictable investment outcomes
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Factor investing offers a transparent, rules-based approach that provides more predictable investment outcomes.
Reduced risk, increased opportunity
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We work with institutions to understand their current portfolios and how to more efficiently replicate existing risk factors while promoting opportunities for higher returns.
More to explore
Midyear Fixed Income Outlook: Starting Yields Matter Amid Uncertainty
by Jonathan Rocafort, Managing Director, Head of Fixed Income Solutions
June 30, 2025
Higher starting yields may result in more attractive return profiles for fixed income investments, and elevated income could also provide a cushion to limit downside risk amid continued rate volatility.
Municipal Bond Premiums: Separating Fact from Fiction
by Jonathan Rocafort, Managing Director, Head of Fixed Income Solutions; Evan Rourke, Director, Portfolio Management
June 24, 2025
This paper helps dispel common misconceptions about premium municipal bonds that can lead to poor decision-making. Once investors learn the difference between fact and fiction regarding municipal bond premium prices, they can make decisions that lead to better investment outcomes.
