Download Comparing Mutual and Exchange-Traded Funds Activity Directions

Comparing Mutual and Exchange-Traded Funds Activity
Directions: Display in a graphic organizer how mutual funds and exchange-traded
funds are similar and different using the characteristics in the provided scenario. In
other words, create a Venn diagram (or something similar) to show this information.
Melissa convinced David to invest money in fund securities since a variety of
securities will be included. Melissa invested in mutual-funds and David invested in
exchange-traded funds. Melissa liked that her dividends would be reinvested so that
she could possibly earn more. David read his investment portfolio again, and realized
that dividends earned on his funds are usually not reinvested.
He started his account with $400 by his choice. He did not have to adhere to a
minimum amount. Melissa started her mutual fund investment with a balance of $5,000.
She regretted having to start her account with that large amount of money. Melissa and
David know that they will have to pay fees for their investment transactions and they will
face different levels of risks. Melissa kept up with the value of her mutual funds regularly
at the end of closing days of trading since that is when values are available. David could
check the value of his exchange-traded funds anytime. They are both looking forward to
earning dividends.