VettaFi to Buy RAFI Indices, Indexed Assets Rise to $260B

TMX VettaFi signed a definitive agreement on June 11 to acquire RAFI Indices from Research Affiliates. The transaction increases VettaFi’s indexed assets from roughly $80 billion to more than $260 billion as of the end of the first quarter of 2026, according to Todd Rosenbluth, head of research at TMX VettaFi.

Rosenbluth described the firm’s expansion over the past three years through organic growth and acquisitions. He said adding RAFI will expand VettaFi’s index offerings by incorporating established fundamental, or smart beta, weighting methods alongside its existing thematic indexes.

RAFI Indices underpin several large smart beta ETFs, including the Schwab Fundamental U.S. Large Company Index ETF (FNDX), with about $25 billion in assets, and the Invesco RAFI 1000 ETF (PRF), with about $10 billion. Both funds posted year-to-date returns near 15.5% at the end of the first quarter of 2026. FNDX recorded more than $400 million in net inflows year to date, while PRF experienced roughly $180 million in outflows during the same period.

RAFI indexes use rules that weight companies by fundamentals such as cash flow and sales rather than by market capitalization. That weighting method aims to offer a valuation-driven alternative to traditional cap-weighted benchmarks.

VettaFi’s fundamental-focused products have also shown notable activity. The VictoryShares Free Cash Flow ETF (VFLO) returned about 17.9% through the first quarter of 2026 and attracted roughly $940 million in inflows year to date. VettaFi provides the index for the Alerian MLP ETF (AMLP), which returned about 15.3% year to date and recorded over $600 million in inflows during the same period. For comparison, the Vanguard S&P 500 ETF (VOO) returned about 9% through the first quarter of 2026.

Rosenbluth said integrating RAFI’s intellectual property with VettaFi’s Index Factory technology and distribution network will give partners access to a wider set of fundamental strategies. “We’re really excited about bringing these together. RAFI is a pioneer within the smart beta and fundamental investing space and I think it’s going to impact a lot of investors,” he commented.

The agreement is expected to close in the coming weeks. Many Research Affiliates staff are expected to join VettaFi, and Research Affiliates founder Rob Arnott will remain in a consultative role with the firm.

Disclosure: VettaFi LLC is the index provider for VFLO and AMLP and receives an index licensing fee. Those ETFs are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation in connection with their issuance or trading. Research Affiliates developed the RAFI rules-based fundamental-weighting methodology used in ETFs and other products since it introduced the approach.