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The exchange-traded fund industry needs to develop new products and get better at educating investors about ETFs, said Vanguard Chief Investment Officer Gus Sauter, speaking at the IndexUniverse conference.

From 2000 to 2010, assets in ETFs grew by about 30 percent per year. By comparison, traditional mutual funds grew by about 5 percent over the same time frame.  ETFs now hold about $1.5 trillion in investor assets, he said.

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