VettaFi today officially completed its acquisition of RAFI Indices, LLC from Research Affiliates Global Holdings, LLC. The deal was originally announced in June 2026. The transaction unites RAFI’s decades of deep, academically grounded intellectual property with VettaFi’s agile, modern indexing infrastructure.
Key Takeaways
- VettaFi completes acquisition of RAFI Indices, pushing assets over $260 billion.
- The deal adds over 90 specialized strategies across global equities.
- Transaction merges RAFI’s fundamental research with VettaFi’s modern technology platform.
The deal expands VettaFi’s overall index assets to over $260 billion. We have significantly broadened the data-driven capabilities available to financial advisors and investors looking to build precise portfolios.
Pairing Institutional Research With Next-Gen Tech
At the heart of this combination is a shared commitment to empirical research and systematic innovation. Founded by quantitative strategist Rob Arnott, RAFI Indices revolutionized index construction by challenging market-cap weighting.
RAFI uses fundamental metrics, such as cash flow, sales, dividends, and book value, rather than market price. This smart beta framework was built to eliminate the performance drag of overvalued equities systematically. Integrating RAFI’s team into VettaFi pairs this institutional research rigor with VettaFi’s proprietary Index Factory platform and expansive distribution reach.
“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.”
Powering the Future of Smart Beta
RAFI Indices currently serves as the engine behind leading smart beta products. Examples include the $27 billion Schwab Fundamental U.S. Large Company Index ETF (FNDX) and the $10 billion Invesco RAFI 1000 ETF (PRF). The suite spans over 90 specialized strategies across fundamental value, cap-weighted core, and fundamental growth investing.
These fundamental benchmarks complement the existing VettaFi lineup. VettaFi is the index provider behind popular thematic and free cash flow products. Those include the Alerian MLP ETF (AMLP), the ROBO Global Robotics & Automation ETF (ROBO), and the VictoryShares Free Cash Flow ETF (VFLO).
At VettaFi, we are focused on reimagining traditional market-cap benchmarks. We will continue to deliver indices providing broad and targeted coverage, lower turnover, and more precise toolkits. The acquisition ensures continuous research continuity for existing RAFI strategies while accelerating the deployment of next-generation benchmarks across asset classes.
For more news, information, and analysis, visit VettaFi | ETF Trends.
Originally posted on ETF Trends
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