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International Equity

Parametric's International Equity Strategy is designed to efficiently capture the long-term returns of developed international equity markets while avoiding both the return risks of active management and the concentration risks of mainstream international equity indexes.

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International Equity seeks to outperform the MSCI EAFE Index over three to five years. We use a top-down process to reweight the portfolio at three levels with the goal of reducing concentration risk. Reweighted country and sector allocations, broadly diversified individual holdings, and disciplined rebalancing are central to this investment approach. Our transparent and repeatable process helps clients better understand their holdings.

Investing in an equity strategy involves risk. All investments are subject to loss. Learn more.

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Why choose Parametric?


Total firm AUM


Investment professionals


Years of equity experience

As of 12/31/2023

How it works

We weight countries equally within tiers defined by size and liquidity constraints, reducing concentration of the largest countries and overweighting smaller ones.
Once a country target exposure is determined, we set sector target weights in each country in an attempt to move closer to an equal representation from each economic sector while taking practical liquidity considerations into account.
We screen out high-beta names within each country-sector combination in favor of low-beta combinations. The result is a broadly diversified  portfolio of 800 to 1,200 names.
Over time, we systematically rebalance the portfolio, bringing exposures back in line with target weights and redeploying capital into underweight areas.

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