Unit Investment Trust (UIT) Definition

ETF Glossary

Dec 04, 2023

Reviewed by: etf.com Staff

Edited by: etf.com Staff

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Unit Investment Trusts, or UITs, represent a distinctive investment structure characterized by a fixed portfolio composition. Unlike mutual funds, UITs issue a fixed number of units to investors, holding a predetermined set of securities until the trust's termination date. Investors receive a portion of the UIT's net assets upon maturity. This finite structure provides transparency regarding the trust's holdings and lifespan, offering a defined investment strategy for those seeking a specific investment duration. UITs provide an alternative for investors looking for a straightforward and predetermined investment vehicle with a clear endpoint and a predetermined distribution of assets at maturity.

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Exchange-Traded Fund, Mutual Fund

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Unit Investment Trust (UIT) Definition

Learn more about Unit Investment Trust (UIT)

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