What are UITs?
UITs are a fixed portfolio of stocks, bonds or other securities. These types of portfolios allow investors to know what securities are held within a UIT as of the date of deposit, as well as the mandatory termination date of the trust. A trust may terminate early as described in the prospectus. Like mutual funds, UITs offer an attractive opportunity for investors to own a portfolio of securities via a low minimum, liquid investment. Actively managed funds continually buy and sell securities, thereby changing their investment mix. The securities held in a UIT generally remain fixed.
