Exchange-traded funds tracking the FTSE 100 Index have rallied as the flagship UK large-cap index closed above 7,500 for the first time on 16 May. The ‘Footsie’ ended the day up 0.91%, on 7,522, following a weaker pound after the release of UK inflation figures showing inflation had risen to 2.7%.

Only 28% of active funds in Europe outperformed their traditional benchmarks in 2016, according to research from European ETF provider Lyxor, adding support to passive trackers such as ETFs in the active vs. passive superiority debate.

By Lyxor’s Cross Asset Research Team.

Investors breathed a sigh of relief after centrist, pro-EU candidate Macron’s victory in the 1st round of French elections. Since then, European markets have come out swinging. Now he’s secured the presidency, is another surge likely? In our view, the answer is “oui”

US ETF provider ProShares has found that dividend-grower strategies have historically outperformed high-dividend-yield strategies in both periods of rising and falling rates. Dividend-grower strategies target stocks that consistently grow their dividends over time while high-dividend-yield strategies choose to focus on the stocks with the highest dividend yields.

Source, the London-based ETF issuer set to be acquired by Invesco, has announced the forthcoming closure of its FTSE RAFI Equity Income ETF series. In a letter to shareholders, Source advised that the three funds would be terminated on 14 June 2017.

Seventy percent of financial advisers predict that an increasing number of clients will switch some of their capital out of cash in response to rising inflation, according to a study of 108 UK-based financial advisers commissioned by Investec Wealth & Investment.

Winterflood Business Services has launched a fractional share dealing facility allowing clients to trade and hold ETFs to four decimal places. Alex Kerry, head of Winterflood Business Services, commented: “We believe fractional share dealing will help more platforms to build a wider investable universe for micro investors and encourage saving and investment.”

Invesco has entered into a definitive agreement to acquire European ETF issuer Source. The transaction will add Source’s $25 billion in assets under management to Invesco’s existing global ETF AUM of approximately $120 billion. “We’re excited about this opportunity to build on Invesco’s 40 years of factor investing experience and our existing PowerShares ETF business, which will significantly enhance our ability to deliver meaningful solutions to institutional and retail clients in Europe and around the world,” said Martin L. Flanagan, president and CEO of Invesco.

Vanguard has listed two UK equity ETFs on the SIX Swiss Exchange. The Vanguard FTSE 100 UCITS ETF (VUKE) and the Vanguard FTSE 250 UCITS ETF (VMID), which are already listed on LSE in GBP, will trade in CHF on SIX.

Investors should avoid looking exclusively at fund fees when selecting exchange-traded funds, according to a panel of industry experts who addressed an event held by HSBC last week. The speakers explained that while choosing an ETF with a competitive fee structure is undoubtedly important, investors should not discount the tracking precision of the fund.