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
A is correct; UITs are not actively managed, so holdings do not adjust to market changes. B and C are incorrect—UITs are available to retail investors and can offer distributions. D is not a UIT feature.
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