Unit Investment Trusts (UITs)

• A UIT is a simple, convenient and affordable way to develop a well-diversified portfolio of stocks and/or bonds. They are typically liquid investments and suitable to most investors.
• UITs follow a buy and hold strategy. The typical UIT remains invested in the same pool of securities throughout the life of the trust; consequently, they aren’t actively traded.
• A UIT issues a redeemable fund (a unit), much like a mutual fund. Owning a unit of the trust means you own a proportional share of the investments in the portfolio. Typically, a UIT will make a one-time public offering of a fixed number of shares; however many UIT sponsors will maintain a secondary market for the shares.

Helpful UIT Links:

First Trust Advisors

A Guide to Unit Investment Trusts

Securities and Exchange Commission