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