TMX VettaFi Acquires RAFI Indices to Strengthen Indexing and ETF Strategies

Key Facts

In a move reflecting the accelerating consolidation within the financial data and services sector, TMX VettaFi has announced a definitive agreement to acquire RAFI Indices from Research Affiliates. According to reports, the acquisition aims to integrate RAFI’s fundamental indexing strategies into VettaFi’s comprehensive research and data platform. This strategic step is designed to enhance the firm's ETF offerings and expand the analytical tools available to institutional and retail investors alike.

This acquisition occurs as the asset management industry increasingly pivots toward Smart Beta and factor-based investing, with RAFI's parent company, Research Affiliates, overseeing over $130 billion in global advisory assets as of recent corporate filings. By integrating RAFI’s methodologies, VettaFi positions itself more aggressively against industry giants like MSCI and S&P Dow Jones. Per market data, the deal allows VettaFi to leverage RAFI’s renowned approach of weighting companies by economic fundamentals rather than traditional market capitalization.