Nasdaq (NasdaqGS: NDAQ) on Wednesday said it will acquire the index business of Mergent, which oversees a family of dividend benchmarks, for an undisclosed sum.

The acquisition is notable for the ETF business because funds pegged to dividend-themed indices have been extremely popular with investors hungry for income and lower-risk strategies.

For example, Vanguard Dividend Appreciation ETF (NYSEArca: VIG) tracks the Dividend Achievers Select Index, which was created by Mergent. The benchmark follows U.S.-listed companies that have increased their annual regular dividends for at least the past 10 consecutive years. [Dividend ETF Yield Even More Critical in Sideways Markets]

Aside from managing indices, Mergent also supplies business and financial data on global public companies.

Nasdaq’s deal also includes Mergent’s Indxis business.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.