Rosenbluth Details VettaFi’s Acquisition of RAFI Indices on CNBC

TMX VettaFi Head of Research Todd Rosenbluth appeared on CNBC’s ETF Edge to discuss VettaFi’s recent acquisition of RAFI Indices.On June 11, TMX VettaFi signed a definitive agreement to acquire RAFI Indices from Research Affiliates. VettaFi is an index provider with over $80 billion in assets, but the deal would bring this asset base to more than $260 billion as of the end of Q1 2026. Rosenbluth mentioned that VettaFi has grown rapidly both organically and through acquisitions over the last three years.   Integrating Smart Beta and Thematic StrengthWhile VettaFi is established as a leader in thematic strategies, the addition of RAFI Indices allows the firm to extend its capabilities deeper into the realm of fundamental strategies. RAFI Indices powers prominent smart beta strategies, such as the $25 billion Schwab Fundamental U.S. Large Company Index ETF (FNDX A) and the $10 billion Invesco RAFI 1000 ETF (PRF A-), both of which have delivered strong year-to-date returns of approximately 15.5%. FNDX has successfully attracted more than $400 million of net inflows this year. Meanwhile, PRF experienced outflows of $180 million during the same period, despite its comparably strong performance. PRF was up 16% in 2026. Meanwhile, FNDX rose 15% when Rosenbluth was interviewed. These ETFs use a rules-based approach, prioritizing fundamental factors like cash flow and sales over traditional market-cap weighting. As a result, they offer investors a disciplined way to access valuation-driven strategies. Rosenbluth mentioned that VettaFi’s collection of smart beta solutions has shown similar strength, particularly the VictoryShares Free Cash Flow ETF (VFLO). Achieving a standout 17.9% return so far in 2026, the free cash flow ETF has gained significant investor interest, attracting $940 million in inflows this year as investors seek out high-quality fundamental exposure. These smart beta funds have performed superbly compared to traditional market-cap-weighted funds, such as the Vanguard S&P 500 ETF (VOO A), which saw returns of just over 9% in 2026.  The momentum extends into VettaFi’s thematic offerings as well. The Alerian MLP ETF (AMLP A-) has proven to be a reliable performer with a 15.3% year-to-date return, capturing more than $600 million over the same period. The success of these diverse funds underscores a broader market shift toward the data-driven, innovative investment tools that the combined VettaFi and RAFI platform provides.Broadening the ToolkitBy integrating RAFI’s premier intellectual property with VettaFi’s advanced Index Factory technology and distribution network, partners gain access to an enhanced suite of resources that features some of the industry’s most esteemed fundamental strategies. This acquisition significantly strengthens the current platform, as RAFI contributes a history of extensive research and established methodologies that resonate with VettaFi’s mission to deliver data-driven and innovative investment tools. “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,” said Rosenbluth. The deal is expected to close in the coming weeks, with many Research Affiliates team members joining VettaFi. Others, including Rob Arnott, will support VettaFi on a consultative basis.  For more news, information, and analysis, visit VettaFi | ETFDB.   VettaFi LLC (“VettaFi”) is the index provider for VFLO and AMLP, for which it receives an index licensing fee. However, VFLO and AMLP are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of VFLO or AMLP.