Unit investment trusts aren?t as popular with investors as mutual funds, ETFs or closed-end funds, but they share many of the qualities of these more widely held and, frankly, better understood investment products.
Yet UITs can be a viable alternative for investors who prefer to hold a diversified blend of stock without sacrificing liquidity. Equally important, because the investments within the unit trust rarely change, it's easy for advisors and clients to track the performance of their diversified investment portfolio.
Here are seven facts advisors and their clients need to know about unit investment trusts:
Source: Kevin Mahn, President and Chief Investment Officer, Hennion & Walsh Asset Management.