OppenheimerFunds to acquire VTL Associates
OppenheimerFunds is to purchase VTL Associates, thereby allowing it to expand into the growing smart-beta space. VTL manages $1.7bn for investors across eight exchange traded funds (ETF) and its separate accounts. The acquisition will bring both high-quality smart-beta ETFs and an ETF platform offering cost and tax efficient investment solutions, which financial advisors are increasingly using in their investors' portfolios.
OppenheimerFunds announced its acquisition of VTL Associates, an independent investment firm known for its RevenueShares exchange traded funds, joining a growing group of mutual fund providers expanding their investment suite with ETFs.

According to a press release, OppenheimerFunds acquired VTL on Wednesday. VTL has been in talks to woo a suitable buyer, so the acquisition comes as no real surprise. [RevenueShares Looks for Suitors]

VTL manages $1.7 billion across eight RevenueShares ETFs and separate accounts. The RevenueShares ETFs are based on smart-beta indices that weight holdings based on revenue and aim to diminish exposure to overvalued companies. The strategies include the RevenueShares Large Cap Fund (NYSEArca: RWL), RevenueShares Mid Cap Fund (NYSEArca: RWK), RevenueShares Small Cap Fund (NYSEArca: RWJ), RevenueShares Ultra Dividend Fund (NYSEArca: RDIV), RevenueShares Global Growth Fund (NYSEArca: RGRO), RevenueShares Financials Sector Fund (NYSEArca: RWW), RevenueShares ADR Fund (NYSEArca: RTR) and RevenueShares Navellier Overall A-100 Fund (NYSEArca: RWV).

“Investors are looking to active managers for innovative solutions to add to their overall investment strategy, including products that are designed to deliver better-than-market returns with full transparency of their investment process,” Art Steinmetz, Chairman, President and CEO of OppenheimerFunds, said in the press release. “VTL’s distinctive approach to smart beta is an outstanding addition to our compelling array of investment strategies across all asset classes.”

The ETF industry has been incrementally growing over the years as more investors and advisors turn to the relatively cheap and efficient investment vehicle. Consequently, with the ETF industry cutting into the mutual fund companies’ market share, more fund providers are considering ETF options to bolster assets.

OppenheimerFunds is just one of many mutual fund providers and money managers seeking to expand their presence in the financial space through ETFs. For instance, T. Rowe Price Group, Principal Global Investors and Goldman Sachs Asset Management have all filed with the Securities and Exchange Commission to launch ETFs. [Active Money Managers Jumping on the ETF Bandwagon]