Exchange-traded funds will continue on a strong, albeit somewhat scaled back, growth track, expanding assets by an average of 19% a year over the next five years through 2014, according to Financial Research Corp. Over the last five years, the annual growth rate has been 23%.

“ETFs will continue to pick up assets at the expense of mutual funds, and we expect nearly 15% year-over-year growth in 2010,” said Lynette DeWitt, author of the FRC study.

“ETFs have a major influence on the market, not because of their asset size today, but because of their trading influence. We expect this to change over time, with assets becoming more influential than market-moving ability,” DeWitt said.

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