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Factors

Parametric provides cost-efficient, risk-controlled access to a suite of 14 different factor strategies across US and developed international equities.

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Securities displaying certain characteristics, or factors, tend to exhibit higher return potential over time. Your clients can customize a factor-based portfolio to express unique investment views. You can apply these strategies to customized portfolios, which allow for additional customization options such as responsible investing and active tax management.

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How factor investing works

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Advisors and clients 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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Clients can customize the portfolio with active tax management and ESG guidelines.

Three ways to invest

Single factors

Parametric identifies stocks that exhibit these individual characteristics.

Single Factors Single Factors stacked

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 client’s needs or by combining factor strategies with a cap-weighted index.

Why choose Parametric?

$7.3B+

Factor solutions AUM

$572.1B+

Total firm AUM

14

Proprietary factor strategies

As of 9/30/2024

Intended benefits of factors

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Efficient exposure

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

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After-tax return

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We use a systematic tax management approach to capture tax alpha opportunities.

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Consultative approach

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

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