Unit Investment Trust (UIT) Definition

Unit Investment Trust (UIT) Definition

Learn the definition of unit investment trust (UIT) and other ETF terminology from the etf.com glossary.

Reviewed by: etf.com Staff
Edited by: etf.com Staff

Learn more about Unit Investment Trust (UIT)

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.

Related Terms

Exchange-Traded Fund, Mutual Fund

ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock exchanges, and they can encompass a wide range of asset classes, including stocks, bonds, commodities and more. Given the diverse range of ETFs and the complexity of financial markets, having a clear understanding of ETF-related terminology is instrumental for investors looking to make informed decisions, manage risks effectively and navigate the evolving landscape of ETF investments.