TMX Group has acquired RAFI Indices from Research Affiliates for $490 million, significantly expanding its index offerings by adding 90 indices and tripling its indexed assets. This move is seen as a strategic step to enhance TMX VettaFi's portfolio and leverage RAFI's fundamental-based investment strategies.
The TMX Group's acquisition of RAFI Indices from Research Affiliates is significant for investors focused on smart beta ETFs and value investing. This deal substantially increases TMX VettaFi's indexed assets by adding 90 indices known for their fundamental-based approach, essential for those interested in strategies that prioritize company fundamentals over market price. This expansion offers new opportunities for diversifying a portfolio with indices powering popular smart beta ETFs like the Schwab Fundamental US Large Company Index ETF and the Invesco RAFI 1000 ETF.