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.

Factors Intro

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.

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Why choose Parametric?

total firm AUM icon

$389B

Total firm
AUM

Factor Solutions AUM

$5.2B+

Factor solutions
AUM

Average Experience

Proprietary factor
strategies

As of 12/31/2022

How it works

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Investors prioritize their preferred factors.

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We provide a portfolio with high exposure to stocks exhibiting the desired factor characteristics.

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Investors can customize the portfolio to meet their unique investment objectives.

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.