Unit Investment Trusts (UITs)

A unit investment trust UIT is one of three basic types of investment companies . The other two types are open-end funds (usually mutual funds ) and closed-end funds . Exchange-traded funds (ETFs) are generally structured as open-end funds, but can also be structured as UITs. [1]

A UIT invests the money raised from many investors in its one-time public offering in a generally fixed portfolio of stocks, bonds or other securities. [1]

Here are some of the traditional and distinguishing characteristics of UITs: [1]

UITs hold a variety of securities.  Each UIT may have different investment objectives, strategies, and investment portfolios. They also can be subject to different risks and fees and expenses . Fees reduce returns on fund investments and are an important factor that investors should consider when buying shares. [1]

In addition, before investing in a UIT, you should carefully read all of the UIT’s available information , including its prospectus. [1]

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1. US SEC · Investor.gov — Unit Investment Trusts (UITs) ↗

Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.