SIE practice questionmediumUITs - Management
A key difference between a UIT and a mutual fund is that a UIT:
- ACan issue an unlimited number of new units daily
- BDoes not have an active manager making changes to the portfolio✓ Correct answer
- CUses leverage to enhance returns
- DHas shares traded intraday on the NYSE
Explanation
Why B — Does not have an active manager making changes to the portfolio
UITs are unmanaged after creation; mutual funds are actively managed. UITs do not issue unlimited units, generally avoid leverage, and are not exchange-traded.
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