Morningstar has announced an exciting development that will significantly reshape its presence in the global indexing arena. The company has agreed to acquire the Center for Research in Security Prices (CRSP) from the University of Chicago for a substantial sum of $375 million. This strategic move is expected to elevate Morningstar to one of the largest index providers for public US equity index funds, marking a pivotal moment in its market trajectory.
A key component of this acquisition involves Morningstar gaining ownership of the highly respected CRSP Market Indexes. These indexes serve as vital benchmarks for an impressive sum exceeding $3 trillion in US equities, encompassing a wide range of market capitalizations, investment styles, and sectors. This integration will provide a substantial boost to Morningstar’s existing index capabilities, allowing for greater scale and influence. Notably, Vanguard, a widely recognized investment firm, utilizes several funds that track CRSP indexes. These include popular mutual funds and exchange-traded funds (ETFs) such as the Vanguard Total Stock Market Index Fund (VTSAX and VTI) and the Vanguard Mid-Cap Index Fund (VIMAX and VO). Millions of investors highly regard these particular funds for their extensive diversification and competitive low costs.
CRSP, founded in 1960 at the esteemed University of Chicago, boasts a rich history of serving investors, academics, and regulatory bodies. For over six and a half decades, CRSP has been instrumental in providing essential financial data and market indexes that underpin critical research, scholarly pursuits, and practical investment strategies. Over 65 years ago, CRSP pioneered the development of the first market database designed to help investors accurately measure the historical rates of return for U.S. stocks, thereby ushering in a new era of transparency for U.S. equities. Today, CRSP remains celebrated for its exceptional quality and comprehensive historical US equity and index data.
With annual revenues hovering around $55 million, CRSP’s team is poised to join Morningstar Indexes upon the transaction’s completion. This integration will undoubtedly infuse Morningstar’s index offerings with CRSP’s deep expertise and innovative approaches.
The acquisition is anticipated to be finalized in the fourth quarter of 2025, pending the satisfaction of customary closing conditions, including crucial regulatory approvals.
KEY QUOTES:
“By bringing CRSP’s trusted data validation processes and robust indexing methodologies into our fold, we’re reinforcing our commitment to offering high-quality, data-driven tools that empower investors to make smarter decisions. We know that assets tied to indexes play a critical role for asset owners when choosing providers, and this acquisition allows us to expand our capabilities to these clients. With CRSP’s expertise and our shared focus on delivering exceptional value, we’re excited to create even more opportunities for investors and help them achieve their long-term goals.”
Kunal Kapoor, chief executive officer of Morningstar
“A hallmark of economic scholarship at the University of Chicago has been the rigorous use of data to unlock fundamental market insights, for the benefit of scholars as well as investors – and CRSP has made vital contributions to those advances. As CRSP and Morningstar embark on a new chapter, Morningstar is a natural fit for CRSP’s strengths, and it brings the business insights, experience, and capacity required to make full use of, and build upon, CRSP’s potential.”
Madhav Rajan, dean of the University of Chicago Booth School of Business and chair of CRSP’s Board of Directors
