SIE practice questionmediumUITs
A disadvantage of UITs compared to mutual funds is that UITs:
- ARequire daily rebalancing of the portfolio
- BCan only be purchased by institutions
- COffer no income distributions
- DDo not provide active management to respond to changing market conditions✓ Correct answer
Explanation
Why D — Do not provide active management to respond to changing market conditions
UITs generally hold a fixed portfolio and do not provide active management to respond to market changes. They can be available to retail investors and can make income distributions.
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