After a rush of activity over the last five years, CUSOs thatoffer exchange-traded funds might see a slowdown in growth over thenext four years.

According to Financial Research Corp.'s new mid-year 2010 ETFreview, ETF assets are expected to achieve an annual growth rate ofnearly 19% between 2010 and 2014, which is a somewhat slower pacethan the 23% annual growth rate over the last five years.

In its study, FRC found that the trading influence of ETFs,lower fees, and tax efficiency relative to mutual funds, as well asexpected wider adoption by institutional and financial advisors,will drive ETF growth. Findings in the study are based on ananalysis of FRC's IMPACT database of fund assets and net sales,third-party research, and publicly released industry whitepapers.

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