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He's seen one from a plane off the coast of Iceland; another he saw in Bhutan, and one while on a boat in the Black Sea."It's the most amazing sight the sky has to offer," Arnott, the founder of Research Affiliates, told Business Insider over lunch last week. "It's emotional, and it's hard to put your finger on why. On one level, you feel very small. Just a little speck in the universe. And on the other hand, you're very moved by the sheer beauty of it."Initially, Arnott's passion for the celestial phenomenon surprised me. Then I connected the dots. Earlier in our conversation, Arnott had briefly mentioned that his passion for math in high school had him split between a career in finance or astrophysics.Ultimately, of course, he chose the former.Natalie Keyssar for BI"I was good at math, but not extraordinary," he said. "To make a difference in astrophysics, you have to be extraordinary."What kind of career astrophysicist Rob Arnott would have had, we'll never know. But in the world of investing, we can be certain that Arnott has made his mark.Arnott has been a pioneer in index investing products, pointing out flaws in popular mainstream indexes like the S&P 500 that can hurt investors.Since these indexes are passive, cap-weighted strategies, they can have an investor unwittingly overweight one sector or theme, like technology or AI. In the early 2000s, Arnott was the first to introduce alternative index strategies to the market, launching his Fundamental Index in 2005. Firms like BlackRock, Charles Schwab, Invesco, and PIMCO have funds that use Research Affiliates' indexes.Today, Arnott is still launching new products that challenge market dynamics. His most recent focus is on the stocks that get kicked out of or added to the S&P 500 and other indexes. Last year, he put out the Research Affiliates Deletions ETF (NIXT), which is a collection of fundamentally attractive stocks that have been taken out of the S&P 500.Last week, he released the Research Affiliates Cap-Weighted US ETF (RAUS), which takes a cap-weighted approach to indexing only after undergoing a fundamentals-based selection process. Arnott sees it as an improvement on the inefficiencies of the current selection and removal process for major indexes, which can diminish returns.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,664.36 +32.40 (+0.49%)Dow 3046,315.27 +172.85 (+0.37%)Nasdaq22,631.48 +160.75 (+0.72%)Russell 20002,448.77 -18.93 (-0.77%)VIX15.45 -0.25 (-1.59%)Gold3,705.80 +27.50 (+0.75%)PortfolioSign in to access your portfolioSign inTop gainersOKLO Oklo Inc. 135.23 +30.26 (+28.83%)BHF Brighthouse Financial, Inc. 57.59 +12.33 (+27.24%)QUBT Quantum Computing Inc. 23.27 +4.92 (+26.81%)MENS Jyong Biotech Ltd. 65.62 +13.87 (+26.80%)SMR NuScale Power Corporation 46.77 +8.65 (+22.69%)Top losersDXCM DexCom, Inc. 67.45 -8.33 (-10.99%)HESM Hess Midstream LP 35.36 -4.12 (-10.44%)VOR Vor Biopharma Inc. 27.24 -3.16 (-10.39%)CART Maplebear Inc. 41.50 -3.90 (-8.59%)ORLA Orla Mining Ltd. 10.22 -0.85 (-7.68%)Most activeOPEN Opendoor Technologies Inc. 9.57 -0.37 (-3.72%)INTC Intel Corporation 29.58 -0.99 (-3.24%)SNAP Snap Inc. 8.16 -0.28 (-3.32%)NVDA NVIDIA Corporation 176.67 +0.43 (+0.24%)BBAI BigBear.ai Holdings, Inc. 6.85 +0.57 (+9.08%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBTC-USD Bitcoin USD 115,878.25 +289.23 (+0.25%)ETH-USD Ethereum USD 4,487.49 +26.77 (+0.60%)XRP-USD XRP USD 2.98 -0.01 (-0.48%)JOBY Joby Aviation, Inc. 16.58 +1.95 (+13.33%)INFY Infosys Limited 16.97 -0.60 (-3.41%)Top economic events