Exchange-traded funds (ETFs) have become big business. At the end of the first quarter of 2008, there were 1,280 ETFs with assets under management of $760.8 billion managed by 79 managers on 42 exchanges around the world, according to Morgan Stanley.

That may seem small potatoes compared with the mutual fund industry - after all, Boston-based Fidelity Investments alone had a mammoth $1.5 trillion in managed assets as of April 30. But ETFs are expected to grow rapidly over the next couple of years

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