Source has launched the Source KBW NASDAQ Fintech UCITS ETF (LON: FTEK) – Europe’s first ETF focused solely on the fast growing financial technology (“fintech”) sector in the US. The fund tracks the KBW NASDAQ Financial Technology Index, which captures the equal-weighted performance of 50 significant fintech companies listed in the US. Dr. Chris Mellor, Executive Director, Equity Product Management at Source, commented: “Faster, more efficient and more joined-up technology in the financial arena has driven stellar growth for fintech companies and this trend shows no sign of slowing.”

First Trust has gathered the largest actively-managed ETF/ETP net inflows during January 2017, attracting $394m in net new assets, according to latest research from ETF industry consultant ETFGI. The strong demand for the firm’s products pushed iShares into second place for the month, with the behemoth ETF issuer recording $243m in actively-managed ETF/ETP net inflows, while Source came third with a net $192m in new actively-managed ETF/ETP assets.

Investors in European equity ETFs have enjoyed a bullish start to the year as local companies have gained ground amid positive economic and corporate earnings data – the MSCI Europe Index is up around 2.9% year to date in EUR terms, reflected in a range of ETFs tracking the index. Despite the strong performance, headwinds remain for the region with analysts noting a slowdown in global growth as well as political uncertainty over several key elections as potential disruptors to the continent’s growth momentum.

Data from Thomson Reuters Lipper shows that the best-selling ETF in Europe during January was the Source Bloomberg Commodity UCITS ETF A USD (LON: CMOD), which gathered around €800m. The strong inflows into the Source ETF helped mark a turnaround for Europe-listed commodity ETFs, which gathered approximately €600m total net inflows, as investors sought to diversify their portfolios.

Three new exchange-traded funds listed on London Stock Exchange in January, bringing the total number of ETFs and ETPs listed on the exchange to 885 and 441 respectively. GF International launched an ETF providing access to large- and mid-cap Chinese A-Shares, UBS listed an ETF offering investors access to euro area corporate bonds issued by firms with high ESG ratings, and Source issued a broad commodity ETF tracking the Bloomberg Commodity Index..

Source has listed three of its largest ETPs, collectively holding almost $7bn in assets under management, on the Amsterdam section of the Euronext stock exchange. Following the move, investors in the Netherlands will have the ability to trade locally in Source ETPs tracking the S&P 500 Index, US-listed biotech stocks, or the price performance of physical gold. The cross-listings are expected to make it easier and cheaper for local investors to trade and settle in the products.

Unveiled just three weeks ago, the Source Bloomberg Commodity UCITS ETF (LON: CMOD) has reached $925m in assets under management, becoming the fastest-growing European ETF of the last five years. The fund offers exposure to the widely followed Bloomberg Commodity Index, at total fees of just 0.40%. Chris Mellor, Executive Director, Product Management at Source, commented: “Investors have been crying out for a more competitively priced, simple commodity ETF and the rapid growth in Source’s new ETF reflects this.”

Neil Woodford, one of the UK’s most famous active managers, underperformed mainstream equity indices in 2016, serving as a reminder that ETF investors could strike out on their own at much lower cost. His renowned £9.3bn Woodford Equity Income Fund generated just 3.3% in sterling terms last year, and costs 0.65% for institutional investors up to as much as 1.5% for retail investors. There are several rules-based UK equity income ETFs available as alternative options to the Woodford fund, from providers such as iShares, Source, WisdomTree, SPDR ETFs and PowerShares, all at a lower cost.

ETFs are dominating trading on American exchanges, and research suggests this trend is coming to European shores, although at a slower rate. Currently constituting 30% of all US trading by value, and 23% by share volume, ETFs made up seven of the ten most actively traded securities on US stock markets last year. In Europe ETF and ETP trading activity is also growing – on the London Stock Exchange alone, trading value in December grew by 63.5% compared to December 2015.

Europe-listed US equity ETFs raised €0.9bn of net inflows in December, thanks predominantly to strong demand for the iShares Core S&P 500 UCITS ETF (LON: CSPX) which by itself generated net gatherings of €0.6bn. Despite several predictions of a drop in US markets following Trump’s election, the equity rally has largely continued with Trump’s anti-regulation rhetoric turning fear to optimism and encouraging investors back into the market.