Unlocking Smart Beta Innovation: TMX VettaFi to Acquire RAFI Indices

VettaFi’s core mission is to provide the index and distribution solutions that help asset managers build, grow, and navigate the markets with precision. Last week we took a massive, transformational step forward. TMX VettaFi signed a definitive agreement to acquire RAFI Indices from Research Affiliates, the undisputed pioneer of fundamental indexing and smart beta strategies. The deal is expected to close in the next few weeks, with some members of RAFI joining our team.Key Takeaways: VettaFi’s pending acquisition of RAFI Indices will bring two innovative index firms together. Widely owned $1 billion-plus smart beta ETFs like Schwab’s FNDX and Invesco’s PRF will soon use the same index infrastructure as QGRO and VFLO. The two firms supported more than $260 billion in index based assets at the end of 2026’s first quarter.    RAFI’s intellectual property will be combined with VettaFi’s modern Index Factory technology and distribution platform. This will expand the toolkit available to our partners to include some of the industry’s most respected fundamental strategies. This news is incredibly exciting to me. VettaFi has been fortunate enough to have members of the brilliant Research Affiliates team speak on stage at our Exchange conference over the years. Their deep commitment to intellectual rigor always stand out, as do their well-respected market and index-based insights.Scaling the Smart Beta EcosystemFrom a structural standpoint, this deal is significant. VettaFi was the index provider behind a robust $90 billion in assets as of March 2026. However, this acquisition will instantly propel our combined asset base to more than $260 billion. It is a highly complementary addition to our existing platform.  RAFI indices currently power beloved smart beta ETFs like the $25 billion Schwab Fundamental U.S. Large Company Index ETF (FNDX A) and the $10 billion Invesco RAFI 1000 ETF (PRF A-). Unlike rigid, market-cap-weighted products, these strategies incorporate fundamentals and valuation metrics in a rules-based manner.  This rich fundamental heritage pairs well with VettaFi’s existing smart beta index based lineup, which features quality-focused success stories like the $7 billion VictoryShares Free Cash Flow ETF (VFLO B+) and the $2 billion American Century US Quality Growth ETF (QGRO B). The broader ecosystem of RAFI index-based ETFs also features the PIMCO’s RAFI Dynamic Multi-Factor U.S. Equity ETF (MFUS B+) and the Research Affiliates Deletions ETF (NIXT ).Bridging Fundamental Principles and Thematic GrowthThis expanded footprint also bridges the gap between classic fundamental strategies and thematic indexing. Looking back, recent VettaFi acquisitions successfully brought innovative, specialized benchmarks under our umbrella, including the indexes powering the Range Nuclear Renaissance ETF (NUKZ ) and the Amplify Transformational Data Sharing ETF (BLOK A). These complement our longer-standing thematic winners, including energy infrastructure heavyweight, the Alerian MLP ETF (AMLP A-), and disruptive technology leaders like the ROBO Global Robotics & Automation ETF (ROBO B). The deal is expected to close in the coming weeks. Once the acquisition officially closes, I am truly excited for our teams to work together. I promise to dive much deeper into these RAFI-based ETFs on this platform. We look forward to exploring their potential portfolio use cases and analyzing exactly what makes their methodologies distinct for advisors. For more news, information, and analysis, visit the Thematic Investing Content Hub. VettaFi LLC (“VettaFi”) is the index provider for AMLP, BLOK, NUKZ, ROBO, QGRO, and VFLO, for which it receives an index licensing fee. However, AMLP, BLOK, NUKZ, ROBO, QGRO, and VFLO 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 AMLP, BLOK, NUKZ, ROBO, QGRO, or VFLO.