How Can Investors and Advisors Use Unit Investment Trusts?

Nasdaq’s Jill Malandrino interviews Scott Larsen about the basics of UITs—including the differences between UITs and other investment products and why now may be a good time to take a look at UITs.

Investing involves risk, including the possible loss of principal. There is no guarantee that defined outcome strategies will achieve their investment objectives.

Recently, the outbreak of COVID-19 has adversely impacted global commercial activity and contributed to significant volatility in certain markets. Many governments and businesses have instituted quarantines and closures, which has resulted in significant disruption in manufacturing, supply chains, consumer demand and economic activity. The potential impacts are increasingly uncertain, difficult to assess and impossible to predict, and may result in significant losses.

Important Notices and Disclosures

Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC ("Guggenheim"): Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management.

This material is distributed or presented for informational or educational purposes only and should not be considered a recommendation of any particular security, strategy or investment product, or as investing advice of any kind. This material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. The content contained herein is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.

This material contains opinions of the author or speaker, but not necessarily those of Guggenheim Partners, LLC or its subsidiaries. The opinions contained herein are subject to change without notice. Forward looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable, but are not assured as to accuracy.  Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information. No part of this material may be reproduced or referred to in any form, without express written permission of Guggenheim Partners, LLC.

Read each current Trust’s respective prospectus carefully before investing. It contains the Trust’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus for current Trusts at

Unit Investment Trusts (“UITs”) are fixed and not actively managed. An investment in these fixed portfolios should be made with an understanding of the risks involved with owning various types of investments. Industry predictions may not materialize and securities selected for the Trusts may not participate in overall industry growth, if any. UITs are subject to annual fund operating expenses in addition to the sales charges. Units, when redeemed, may be worth more or less than their original price.

Investing involves risk, including the loss of principal.  Guggenheim UITs invest in various types of securities, which may include common stocks, preferred securities, Real Estate Investment Trusts (“REITs”), convertible securities, senior loans, high-yield bonds, municipal closed-end funds, REIT closed-end funds, mortgage-backed securities, investment-grade corporate bonds, equity closed-end funds, income closed-end funds, international equity securities and/or American Depositary Receipts (“ADRs”), covered-call closed-end funds, and GNMA securities. In addition, the securities may be further classified by market capitalization, industry sector, investment style and issuer’s country of origin. • An investment in a particular Trust should be made with an understanding of the risks associated with its respective underlying securities. • Certain Trusts may be concentrated in various sectors. As a result, the factors that impact the specific sector will likely have a greater effect on the specific Trust than a more broadly diversified Trust. • There is no guarantee that any given Trust will achieve its investment objective. You can lose some or all of your investment in these Trusts. The Trusts might not perform as well as you expect. • Securities prices can be volatile. • The value of your investment may fall over time. • Market value fluctuates in response to various factors. These can include stock market movements, purchases or sales of securities by the Trusts, government policies, litigation, and changes in interest rates, inflation, the financial condition of the securities’ issuer or even perceptions of the issuer. • Share prices or dividend rates on the securities in a particular Trust may decline during the life of the Trust. • The financial condition of an issuer may worsen or its credit ratings may drop, resulting in a reduction in the value of your units. This may occur at any point in time, including during the primary offering period. • Inflation may lead to a decrease in the value of assets or income from investments. • The Trusts will generally hold, and may continue to buy, the same securities even though the security’s outlook, rating, market value or yield may have changed.

©2020 Guggenheim Partners, LLC. Guggenheim Investments represents the investment management business of Guggenheim Partners, LLC. Securities offered through Guggenheim Funds Distributors, LLC.