VettaFi today announced it has signed a definitive agreement to acquire RAFI Indices, the renowned pioneer in fundamental indexing, from Research Affiliates.
VettaFi today announced it has signed a definitive agreement to acquire RAFI Indices, the renowned pioneer in fundamental indexing, from Research Affiliates.
For two decades, RAFI Indices has been at the forefront of fundamental indexing, grounded in deep research and a commitment to helping investors achieve long-term success. Now, this acquisition unites RAFI’s world-class intellectual property with VettaFi’s cutting-edge index technology and expansive insights platforms.
What does this mean for investors? Simply put, it means your portfolio gains direct access to decades of pioneering, academic-grade research. RAFI’s legacy was built on rigorous market analysis – focusing on the fundamental economic footprints of companies rather than just their stock prices. By bringing these two powerhouses together, VettaFi is expanding the reach of RAFI’s elite research engine. This ensures that the deep-dive market analysis and battle-tested insights that have historically driven the industry’s most respected smart beta strategies are more accessible than ever to empower your investments.
In fact, you may already be investing in RAFI-powered strategies. Upon completion of the transaction, this milestone acquisition is expected to bring VettaFi’s combined asset base to more than $260 billion. RAFI Indices currently serve as the engines behind several of the market’s most popular smart beta exchange-traded funds (ETFs), including the $25 billion Schwab Fundamental U.S. Large Company Index ETF and the $10 billion Invesco RAFI 1000 ETF (PRF ).
“RAFI Indices has long set the gold standard for fundamental indexing,” said Tom Hendrickson, President of VettaFi. “By integrating RAFI’s deep, institutional-grade research with our modern technology infrastructure, we are uniquely positioned to deliver an even broader suite of innovative, data-driven investment solutions. We are excited to welcome the brilliant minds of the RAFI team into the VettaFi family as we continue to build what’s next in index ETFs – together.”
“Today, we begin an exciting new chapter in the RAFI story. Our simple idea of creating an index strategy that selects and weights using fundamental measures of size, rather than price or market value, advanced the state of the art for equity investing,” said Rob Arnott, Founding Partner and Board Chair of Research Affiliates. “With TMX VettaFiʼs resources and our shared vision, they will be properly equipped to take RAFI and our newer strategies in cap-weighted core and growth investing to new levels of global success.”
The transaction is expected to formally close in the coming weeks, subject to customary closing conditions.
The full press release can be found here.
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