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.
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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
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by John Hemingway, Vice President, Portfolio Manager
April 28, 2025
With corporate bond ladders, maturities reinvested at higher rates have the potential to benefit the portfolio.
Avoiding Fallen Angels: When Credit Research Matters Most
by Bernie Scozzafava, Director, Quantitative Research and Portfolio Management
April 21, 2025
Learn how fundamental credit research may help to avoid corporate bond downgrades and defaults.
As Tariffs Cloud Outlook, Municipal Bonds May Offer Opportunity
by Jonathan Rocafort, Managing Director, Head of Fixed Income Solutions
April 8, 2025
With growth concerns emerging following tariff announcements, here’s why we see potential opportunity in stepping out of cash, adding some duration and locking in yields near a decade high.