Factors banner

Factors

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.

Explore more custom solutions for institutional investors

Why choose Parametric?

total firm AUM icon



$376B+

Total firm
AUM



Factor Solutions AUM


$4.8B+

Factor solutions
AUM



Average Experience


14

Proprietary factor
strategies



As of 6/30/2022

How it works

number 1

Investors prioritize their preferred factors.

number 2

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

number 3

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 icon

Research-based portfolio construction

Learn more >>

Our thoughtful approach to factor design and research-based portfolio construction doesn’t compromise other aspects of investment management.

Predictable Investment Outcomes icon

Predictable investment outcomes

Learn more >>

Factor investing offers a transparent, rules-based approach that provides more predictable  investment outcomes.

Reduced Risk icon

Reduced risk, increased opportunity

Learn more >>

We work with institutions to understand their current portfolios and how to more efficiently replicate existing risk factors while promoting opportunities for higher returns.

Get in touch

Want to know more about our factors solutions? Complete our contact form, and a representative will respond shortly.

More to explore

This Material Is Intended for
Institutional Investors Only


By clicking Agree, you acknowledge that you have read the terms detailed below. You also confirm that you are a qualified institutional investor or a consultant to qualified institutional investors and wish to proceed. Parametric does not provide legal, accounting, or tax advice or consulting service.



The information on this area of the Parametric Portfolio Associates® LLC (“Parametric”) website is intended for qualified institutional investors and their consultants. This information is not intended for accredited investors in any jurisdiction outside the United States in which the distribution or sale of Parametric investment services is not authorized.

It is published for informational purposes only and does not purport to address the financial objectives, situation, or specific needs of any investor. If you do not qualify, the information shown on this site (which may include information about our investment strategies and products, market commentary, and composite performance) may not be relevant or appropriate for you. Certain solutions discussed in these materials will be subject to minimum investment amounts and other restrictions that apply. There can be no assurance that any investment product or strategy will achieve its investment objectives or that there will be any return of capital. Performance may be volatile, and investors could lose all or a substantial portion of their investment.



I acknowledge that I am a qualified investor and that I have read, understand, and agree to the above conditions.