Acquisition of RAFI Indices; Another Step in TMX VettaFi's Expansion

Research evidence excerpt

Acquisition of RAFI Indices; Another Step in TMX VettaFi's Expansion

June 11, 2026 | 20:42 ET~

TMX Group Diversified Financials - Canada

Étienne Ricard, CFA Analyst

etienne.ricard@bmo.com (416) 359-5296

X-TSX Rating Price: Jun-11 Target Total Rtn

Outperform $50.11 $65.00 32% Katy Chen, CPA* Associate

katy.chen@bmo.com (416) 564-0615

Legal Entity: BMO Nesbitt Burns Inc.

BMO Capital Markets Corp.*

Acquisition of RAFI Indices; Another Step in TMX

VettaFi's Expansion

Bottom Line:

The acquisition of RAFI Indices builds on TMX VettaFi’s track record of scaling and

diversifying its indexing capabilities, a high-growth business with recurring revenue

2YR Price Volume Chart

streams. We calculate the transaction to be +2-3% earnings accretive. Beyond 65

leveraging broader access to distribution, success factors to this transaction revolve 60

around maintaining fee rates (especially in smart beta) while ensuring employee 55

retention given the importance of intellectual capital. 45 54

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Key Points 35 21

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On June 11, TMX announced its intention to acquire RAFI Indices, an index provider LHS: Price (C$) / RHS:Dec Volume (mm) Jun Dec Source: FactSetJun

and investment advisor, for total consideration of ~$680M (link). Transaction closing is

expected in Q3/26. The selling shareholder is Research Affiliates, an investment advisor

that creates and licenses investment strategies.

Background on RAFI Indices. Established in 2016, RAFI Indices is an index provider

specializing in the construction, publication, and licensing of 90+ indices with ~US$182

billion in assets under indexing (AUI). The firm has compounded revenues at a +10%

rate over the past two years.

How is RAFI Indices different as an index provider? The firm has built an expertise