An investment company that sells redeemable shares in a professionally selected portfolio of securities. It is organized under a trust indenture, not a corporate charter.
A fixed portfolio of stocks or bonds with a specific maturity date. Generally sold by brokers.
An investment usually sold by brokers that purchases a fixed, unmanaged portfolio of stocks or other securities, and then sells shares in the trust to investors, usually in units of at least $1,000. Because they are unmanaged, unit investment trusts are somewhat like index funds. However, UITs typically have much higher sales loads and/or annual management fees, so they do not share the low-cost advantage of index funds.
A UIT is a fixed portfolio containing income-producing securities issued by corporations, the U.S. Government or a municipality, depending on the objective of the trust.
(UIT) An investment vehicle (offered by a large investment firm) that consists of a fixed portfolio of securities (e.g., bonds, shares, or mortgage-backed securities). Units in the trust are sold to investors through brokers. The trust expires on a future date based on the maturity dates of the securities in the portfolio. Upon expiration, the investor receives a proportion of the remaining principal and income in the trust. UITs are a form of mutual fund that is most commonly found in European countries.
Common type of ETF that requires exact duplication of index and prohibits derivatives in operation. Like Management Investment Trusts. Examples include SPDRs and QQQs.
Another private placement mechanism where a trust is formed, and investors become participants in the trust by purchasing units in the trust.
a regulated investment company consisting of professional managers who issue redeemable securities representing a portfolio of many different securities; "you can invest in a unit investment trust for as little as $1000"
a collection of securities (usually stocks or bonds) all bundled together in a special vehicle that happens to be a trust
a collection of stocks or bonds that are packaged together and held by a trustee bank for investors, with the bank acting as a custodian
a specialized kind of investment company, which assembles a fixed portfolio of securities (usually tax exempt municipal bonds) and offers interest in that portfolio to the public with minimum investment of $1000 to $5000.
Is an investment vehicle which is funded at the beginning and once investments are acquired acts like a liquidating investment. For example, corporate bonds, sovereign bonds, or mortgage backed securities would be acquired. The interest, principal repayments and accelerated payments would be passed on to the investors. These funds would not be retained by the fund for further investment. It is more nearly analogous to a closed-end fund and different from an open-ended fund.
An SEC-registered investment company which purchases a fixed portfolio of securities and then sells a fixed number of shares in the trust to investors.
A type of investment company that typically makes a one-time "public offering" of only a specific, fixed number of units. A uit will terminate and dissolve on a date established when the uit is created (although some may terminate more than fifty years after they are created). Uits do not actively trade their investment portfolios.... read full article
Investment vehicle that purchases a mix of securities such as bonds, mortgage-backed securities and preferred stock. Individual units (blocks of the trust) are offered for sale to investors for a price, usually exceeding $1,000. Investors then receive a return on income produced from the investment that is in proportion to the amount they invested. The trust exists until all the investors have earned back at least their principle invested. The units of the trust can be resold.
This type of fund structure does not reinvest dividends in the fund and pays them out via a quarterly cash distribution. In order to comply with diversification rules, this ETF structure will sometimes deviate from the exact composition of a benchmark index. This type of fund is registered under the SEC Investment Company Act of 1940. The “DIAMONDSâ€, NASDAQ-100 QQQs, and S&P 500 “SPDRs†follow this format. Back
An investment company that invests in a professionally selected portfolio of bonds and/or stocks. Unlike a mutual fund, the portfolio's investments are fixed over the life of the trust, are not managed, and have a stated or known maturity. Units of the trust's investment portfolio are sold to investors through financial consultants. Also called a "defined portfolio."
Investment company investing in a fixed portfolio of securities. Unit investment trusts provide for professional selection of the securities to be held by the trust, but once purchased, there is generally no trading of the securities. An investor will purchase units in the trust representing an undivided interest in the securities held.
An unmanaged portfolio of investments put together by an investment adviser, usually bonds, sold to investors as a unit which is a fractional ownership of the total package unit of trade. Units of a trust usually sell for $1,000 including sales commission and are normally not attractive for short-term trading.
A type of investment company in which a portfolio is purchased and held with little or no change to the investments. Commonly used with municipal bond investments.
Investment vehicle that purchases a fixed portfolio of income-producing securities, such as corporate, municipal, or government bonds, mortgage-backed securities, or preferred stock. Unit holders receive an undivided interest in both the principal and the income portion of the portfolio in proportion to the amount of capital they invest. The portfolio of securities remains fixed until all the securities mature and unit holders have recovered their principal.
A type of investment company with a fixed unmanaged portfolio, typically invested in bonds or other debt securities in which the interests are redeemable.
A closed-end portfolio of securities sold in fractional, undivided interests (usually $1,000).
An investment company organized under a trust indenture rather than a corporate charter. Investments are made in a fixed portfolio usually consisting of bonds, and deposited with a trustee, which is normally a bank. The trust is scheduled to be liquidated on a specified date, although there is a limited market for trust units or shares which are generally held to maturity. The return on unit trusts is fixed and usually paid out monthly.
A fixed portfolio of tax-exempt bonds sold in fractional, undivided interests.
An investment company that buys and holds a fixed number of shares until the trust's termination date. When the trust is dissolved, proceeds are paid to shareholders. A UIT has an unmanaged portfolio. Like a mutual fund, shares of a UIT can be redeemed on any business day.
A trust, registered with the SEC under the Investment Company Act of 1940, in which a fixed portfolio of income-producing securities are purchased and held to maturity. This type of investment vehicle is commonly used with municipal bonds. Each unit usually costs $1,000 and is sold by brokers to investors for an average load of 4%. Investors receive an undivided interest of the portfolio's principal and income proportionate to the amount they invested. All unit investment trusts are redeemable securities and can be resold in the secondary market. See: Investment Company; Investment Company Act Of 1940; Load; Municipal Bonds; Secondary Market; Unit Share Investment Trust
An investment company that has its own portfolio of securities in which it invests. It sells in this portfolio in terms of redeemable securities. They include two types: fixed (no portfolio changes made) and non-fixed (portfolio changes are permissible). Unit investment trusts are organized under a trust indenture, not a corporate charter.
A package of investments, usually bonds, sold to investors as a unit which is a fractional ownership of the total package. Unlike a mutual fund, the investments in a unit do not change and are not replaced if they mature or are called. Usually sold by brokers.
A structure used by some ETFs. One important difference between this format and the open-end fund format is that the latter allows ETFs to reinvest dividends immediately, while the former does not. This could result in ETFs that use the unit investment trust structure having a slight cash drag on their performance.
Unit Trust unseasoned issue
A mutual fund of a fixed number (20 to 30) of different issues in a portfolio placed in a trust. Units or shares are sold in the trust and each unit receives a proportionate amount of the tax-exempt interest earned by the bonds. As the bonds mature or are called, principal is returned to the investor. UITs have a finite life.
A collection of securities, similar to a mutual fund, traded on an exchange, such as SPDR.
A US based investment company that purchases a fixed portfolio of income producing securities. Units in the trust are sold to investors by brokers.
An investment company organized under a trust indenture that sells interest in its portfolio in terms of redeemable securities.
Money invested in a portfolio whose composition is fixed for the life of the fund. Shares in a unit trust are called redeemable trust certificates, and they are sold at a premium to net asset value.
A Unit Investment Trust (UIT) is a US investment company offering a fixed (unmanaged) portfolio of securities having a definite life. UITs are assembled by a sponsor and sold through brokers to investors.