Parametric Hedged Equity ETF
PHEQ
New York Stock Exchange Arca- -
USD
- -
- -
Capital Structure
FRC
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in mil. unless spec.Working Capital
FRC
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in mil. unless spec.Growth Rates
FRC
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in mil. unless spec.Quarterly Revenue
FRC
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in mil. unless spec.Quarterly Earnings Per Share
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in mil. unless spec.Quarterly Dividends Per Share
FRC
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in mil. unless spec.- Sector
- Financial Services
- Industry
- Asset Management
- Address
- Two International Place Boston MA United States of America 2110
- IPO Date
- Oct 19, 2023
- Website
- morganstanley.com
- Similar Companies
- Business
- Parametric Hedged Equity ETF (NYSE Arca: PHEQ) is an actively managed exchange-traded fund that seeks long-term capital appreciation by investing primarily in U.S. large-cap equities while employing a dynamic options overlay strategy to hedge downside risk and enhance returns. The fund offers exposure to a diversified portfolio of domestic stocks selected through a quantitative, rules-based process emphasizing quality, value, and momentum factors; it utilizes FLEX options for tail-risk protection, put-writing income generation, and call-writing to capture upside participation limits during market rallies. PHEQ targets institutional and retail investors seeking equity-like growth with reduced volatility, operating within the U.S. equity and derivatives markets without significant geographic diversification beyond North America. Launched in June 2022 by Parametric Portfolio Associates LLC, a subsidiary of Morgan Stanley Investment Management headquartered in Seattle, Washington, the ETF manages assets through a team of portfolio managers leveraging proprietary risk-management models. Core services include daily liquidity via exchange trading, transparent holdings disclosures, and competitive expense ratios around 0.45%; the fund complements Parametric's broader lineup of derivative income strategies and hedged equity solutions. PHEQ serves as a core holding for portfolios aiming to mitigate drawdowns in volatile environments, with a focus on large-cap S&P 500 constituents augmented by sector-neutral tilts. In the past year, PHEQ benefited from Parametric's expanded distribution partnerships, including deepened integrations with major platforms like Schwab and Fidelity to broaden advisor access amid rising demand for hedged products. The fund reported asset growth exceeding 50% year-over-year as of late 2025, driven by inflows during equity market corrections and new marketing initiatives highlighting its outperformance versus unhedged benchmarks in down markets. No major acquisitions or rebrands occurred, but Parametric announced enhancements to its options overlay technology in Q3 2025, improving hedge efficiency for PHEQ and related vehicles.