Frequently Asked UIT Questions

Browse our FAQs for answers on a variety of topics related to Unit Investment Trusts (UITs).


What are UITs?

UITs are a fixed portfolio of stocks, bonds, or other securities designed to meet a stated investment objective. These types of portfolios allow investors to know what securities are held within a UIT as of the date of deposit, as well as the mandatory termination date of the trust. A trust may terminate early as described in the prospectus. Like mutual funds, UITs offer an attractive opportunity for investors to own a portfolio of securities via a relatively low minimum, liquid investment. Actively managed funds continually buy and sell securities, thereby changing their investment mix. UITs are not actively managed, and the securities held in a UIT generally remain fixed.

How are UITs created?

Each Guggenheim Investments UIT is created based on a stated investment objective. The trust sponsor selects the securities for, and also determines the mandatory life of the trust.

What are some of the features of UITs?

UITs may provide a convenient approach to investing. Some features of UITs include:

  • A mandatory termination date1
  • Diversification2
  • Daily liquidity3
  • Fully invested4
  • Known portfolio5
  • No manager-driven style drift

When do I receive dividend payments?

Distributions paid from dividends, if any, are paid either monthly, quarterly, semi-annually, or annually, depending on the provisions set forth in each trust's prospectus.

Is there a minimum investment for Guggenheim Investments UITs?

There is a minimum investment of one unit for all Guggenheim Investments UITs.

How do I sell my units?

Investors may sell their units on any business day by contacting their financial professional or, in some cases, the trustee. Unit prices are available daily on the UIT home page or through your financial professional. Guggenheim often refers to the sale price of units as the liquidation price. Investors are responsible for payment of any remaining deferred sales fee when they sell or redeem their units. Certain broker/dealers may charge a transaction fee for processing unit redemptions or sale requests. The liquidation price may be more or less than the original investment amount paid.

What are my options when a trust matures?

Option #1: Rollovers 

Investors may roll over into a new series of the same trust, if available, or into any other Guggenheim Investments UIT available in the primary market.*

* Maturity rollover is considered a taxable event. Please refer to each trust's prospectus for complete rollover option information. Investors should be aware that there is a time limit to notify the trustee of the rollover.

Option #2: Maturity

Investors may do nothing and allow the portfolio units to mature. The trust will liquidate and they will receive a cash distribution of the trust's proceeds, if any.

Option #3: In-kind distribution

Investors may generally request an in-kind distribution of the stocks underlying the units if certain minimum requirements are met. Please see additional provisions set forth in the prospectus. Please refer to the trust prospectus for more complete in-kind distribution information. In-kind distribution is generally available for stocks traded and held in the United States. In-kind distribution may be modified or discontinued at any time without notice.

UITs 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.

Do UITs have a sales charge?

There are characteristically two components of the UIT sales charge: the transactional sales fee and the creation and development ("C&D") fee. The transactional sales fee is a deferred component which is a percentage of the Public Offering Price.* The C&D fee is paid to the sponsor of the trust for creating and developing the trust, which includes determining the trust objective, policies, composition, and size, selecting service providers and information services as well as providing other similar administrative and ministerial functions. The trust pays the creation and development fee as a fixed dollar amount at the close of the initial offering period. The sponsor does not use the fee to pay distribution expenses or as compensation for sales efforts.

* The deferred sales charge (“DSC”) is a fixed amount and will be deducted in monthly installment as outlined in the prospectus or upon early redemption. For unit prices other than $10, percentages of C&D fees, and DSCs will vary but in no event will the maximum sales charge(“s/c”) exceed the total s/c. Early redemption of units will still cause payment of the DSC. However, an initial sales charge, which is equal to the difference between the maximum s/c and the sum of any remaining deferred s/c charges and C&D, will be charged if the price paid for units exceeds $10 per unit.

How are individual securities chosen for a trust?

The selection process used for each trust differs from one portfolio to the next. In general, through proprietary research, Guggenheim Investments seeks to select securities believed to posess the ability to achieve each individual portfolio's investment objective.

Can a security held in a UIT be removed at any time?

While it is rare, a security held in a UIT may be removed from a portfolio under certain circumstances, such as a significant decline in credit rating. By and large, securities held in a UIT remain fixed for the life of the trust, regardless of market value. Please refer to each Trust's prospectus for additional information.

How do I purchase units of a trust?

Investors can buy units of any Guggenheim Investments UIT at the public offering price on any business day by contacting their financial professional. Keep in mind that this price will be more or less than the original offering price. Public offering prices of units of any Guggenheim Investments trust are available daily on the UIT home page.

Are UITs suitable for retirement accounts?

Certain UITs may be well suited for purchase by Individual Retirement Accounts ("IRAs") or other qualified retirement plans. Investors should consult their attorney or tax advisor regarding tax consequences associated with units held outside one of these tax-deferred vehicles. Please note that Guggenheim Funds Distributors, LLC does not offer tax advice.

What types of UITs does Guggenheim Investments offer?

Guggenheim Investments UITs are available in a wide array of asset classes including domestic and global equity, taxable and municipal income, as well as theme, sector, and multi-asset portfolios. An investor should consult a financial representative to best consider which UITs may be a fit for his or her investment strategy.

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 More About UITs

The Advantages of UITs

Transparency, convenience, professional selection and supervision. UITs offer investors many benefits in a single packaged investment.

Advantages of UITs

UIT Product List

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

View UIT Product List

1 UITs may terminate early as described in the prospectus.
Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.
3 Redemptions will be at a price that may be more or less than the original price paid.
4 The trust may hold limited cash positions.
5 As of date of deposit.

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 following affiliated investment management businesses of Guggenheim Partners, LLC: 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, Guggenheim Partners Japan Limited, and GS GAMMA Advisors.

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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.