TMX VettaFi to buy RAFI Indices, combining $260B in smart-beta

TMX VettaFi signed a definitive agreement to acquire RAFI Indices from Research Affiliates, combining two index businesses that together support more than $260 billion in smart‑beta and index‑based assets. The companies expect the transaction to close in the coming weeks and said some members of the RAFI team will join VettaFi after completion, while Research Affiliates will retain parts of its business not included in the sale.

The agreement places RAFI’s intellectual property and fundamental‑indexing methods into VettaFi’s Index Factory and distribution platform. VettaFi plans to integrate RAFI’s methodologies with its index technology so asset managers and financial advisors can access the RAFI indexes through VettaFi’s index and distribution services.

At the end of the first quarter of 2026, the combined footprint supported more than $260 billion in index‑based assets. Prior to the agreement, VettaFi provided indices for roughly $90 billion in assets as of March 2026.

RAFI indices currently underlie several large smart‑beta ETFs, including Schwab’s Fundamental U.S. Large Company Index ETF (FNDX) with about $25 billion in assets and the Invesco RAFI 1000 ETF (PRF) with roughly $10 billion. VettaFi’s existing index lineup includes the VictoryShares Free Cash Flow ETF (VFLO) at about $7 billion and the American Century US Quality Growth ETF (QGRO) at about $2 billion. Other RAFI‑based funds include the PIMCO RAFI Dynamic Multi‑Factor U.S. Equity ETF (MFUS) and the Research Affiliates Deletions ETF (NIXT). VettaFi’s indices also power thematic and sector products such as the Range Nuclear Renaissance ETF (NUKZ), Amplify Transformational Data Sharing ETF (BLOK), the Alerian MLP ETF (AMLP), and the ROBO Global Robotics & Automation ETF (ROBO).

Research Affiliates developed the RAFI method of weighting securities by company fundamentals-book value, cash flow, sales and dividends-rather than by market capitalization. Supporters say fundamental indexing produces rules‑based exposures that differ from cap‑weighted benchmarks; critics point to added complexity and potential tracking differences versus passive market‑cap indices.

The deal requires customary closing steps and regulatory approvals and is expected to finalize within weeks. VettaFi noted some RAFI personnel will join its team after closing; Research Affiliates will continue to operate the parts of its business not included in the transaction.

VettaFi is the index provider for several ETFs and receives licensing fees for those indexes. The company stated that funds using its indexes are not issued, sponsored, endorsed or sold by VettaFi, and that it has no obligation or liability for the issuance, administration, marketing or trading of those funds.

VettaFi described the acquisition as “incredibly exciting” and indicated it will provide additional analysis of RAFI‑based ETFs and their potential uses for advisors after the transaction closes.