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The Advantages of Unit Investment Trusts

Unit Investment Trusts (UITs) offer the convenience and diversification of owning a portfolio of securities in a packaged investment with a stated investment objective. UITs are professionally selected fixed portfolios that allow investors to know what securities are held within the portfolio.

In contrast to actively-managed funds which continually buy and sell securities, thereby changing their investment mix, the securities held in a UIT generally remain fixed. As a result of this relatively fixed portfolio structure, UITs experience no manager driven style drift or adjustments to the portfolio in response to changes in the markets.

 

Transparency—Know What You Own

  • UITs are fixed portfolios that allow investors to know what securities are held in the trust from the date of deposit until maturity.
  • Enables investors to make informed decisions that consider their specific risk preferences.
  • May help avoid concentrated positions and portfolio overlap.

Professional Selection & Supervision

  • Portfolios are selected and continuously monitored by experienced professionals.
  • The static nature of a UIT’s holdings ensures the portfolio generally remains invested in the manager’s preferred universe of securities.

Disciplined “Buy and Hold” Strategy

  • Once a portfolio is selected, the underlying securities generally do not change.
  • Helps eliminate emotional investing by helping investors focus on long-term horizons rather than short-term performance.

Fully Invested Portfolio1

  • UITs typically do not hold cash—virtually every dollar goes to work for the investor.

Income Potential

  • Many UITs seek to provide the potential of monthly income either from dividends or fixed-income distributions, if any. Please note that income can never be guaranteed.

Daily Liquidity

  • Units are typically redeemable on any business day at the liquidation price, which may be more or less than the original purchase price.
  • Investors should be aware that UITs are fixed, not actively managed and should be considered as part of a long-term strategy.

Scheduled Maturity

  • Defined maturity may help investors align their investments with their time horizon. Keep in mind that a trust may terminate early as described in the prospectus.
  • Reinforces investor discipline.
  • If units are redeemed prior to the deferred sales charge period, the entire deferred sales charge will be collected.

Options at Maturity

  • Most investors choose to hold their units until maturity. At that time, investors have three options2:
    • Roll proceeds from maturing UIT into another UIT3 (can be a Guggenheim Investments UIT or another sponsor’s UIT)
    • Receive a cash distribution after Trust liquidates its holdings or
    • In certain cases, if certain limits are met at purchase or maturity (see prospectus for additional information), receive an in-kind distribution, which may defer a taxable event.4

Guggenheim Investments UIT Asset Classes

Over 65 solutions are contained in a variety of asset classes:

  • International/Global
  • Taxable Fixed Income
  • U.S. Equity
  • Municipal CEF
  • Theme/Sector
  • Multi-Asset
  • Taxable CEF Income
  • Laddered Taxable Fixed Income
  • Tax-Exempt Municipal
 

Additional UIT Resources
 

About Unit Investment Trusts

Unit investment trusts (UITs) can be a powerful way for investors to gain exposure to timely opportunities as part of their overall investment plan.

Learn About UITs

Frequently Asked Questions

UITs can be a powerful way for investors to gain exposure to timely opportunities as part of their overall investment plan.

UIT Frequently Asked Questions

UIT Product List

View the current list of primary, secondary and matured UITs.

View UIT Product List



1 The trust may hold limited cash positions.

2 Investors should read the prospectus for further information on their options at maturity and discuss with their financial advisor.

3 Rollovers and exchanges are considered a taxable event.

4 Excludes foreign securities.

Important Disclosure

An investment in a fixed portfolio 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 a trust may not participate in overall industry growth, if any. Units, when redeemed, may be worth more or less than their original purchase price. 

Unit Investment Trusts are fixed, not actively managed and should be considered as part of a long-term strategy. Investors should consider their ability to invest in successive portfolios, if available, at the applicable sales charge. UITs are subject to annual fund operating expenses in addition to the sales charge. Investors should consult an attorney or tax advisor regarding tax consequences associated with an investment from one series to the next, if available, and with the purchase or sale of units. Guggenheim Funds Distributors, LLC does not offer tax advice.




Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objective, risks charges, expenses and the other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus (if available) click here or call 800.820.0888.

Investing involves risk, including the possible loss of principal.

Guggenheim Investments represents the investment management businesses of Guggenheim Partners, LLC ("Guggenheim"), which includes Security Investors, LLC ("SI"), Guggenheim Funds Investment Advisors, LLC, ("GFIA") and Guggenheim Partners Investment Management ("GPIM") the investment advisers to the referenced funds. Securities offered through Guggenheim Funds Distributors, LLC, an affiliate of Guggenheim, SI, GFIA and GPIM.

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This website is directed to and intended for use by citizens or residents of the United States of America only. The material provided on this website is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such 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. All content has been provided for informational or educational purposes only and 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. Investing involves risk, including the possible loss of principal.