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Research Affiliates sells its RAFI indexing unit to TMX
The RAFI index provider has grown to nearly $200 billion over the past two decades, and TMX VettaFi aims to scale indexing to $1 trillion.
ETF Trends highlights that RAFI fundamental indexing is designed as an alternative to traditional market-cap weighting, using company fundamentals such as sales, profits, and economic footprint to build exposure rather than price moves.
The interview notes that RAFI has grown to nearly $200 billion in the last two decades, and that Research Affiliates has now sold its indices business to TMX.
The outlet says the deal is intended to help TMX VettaFi scale its indexing business to $1 trillion, with RAFI also serving as the index provider behind smart beta ETFs including the Schwab Fundamental US Large Company Index ETF (FNDX) and the Invesco RAFI US 1000 ETF (PRF).