Advantages of Unit Investment Trusts (UIT) (2024)

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 50 solutions are contained in a variety of asset classes:

Additional UIT Resources

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.