Mutual Funds, ETFs, and UITs

Mutual Funds, Exchange Traded Funds (ETFs), and Unit Investment Trusts (UITs) are pooled investments where multiple investors combine their dollars in securities in a particular index, sector, or strategy. They can provide immediate diversification – even with limited investable assets.

Mutual Funds are the most common pooled investment and are often the only available investment options in company retirement plans - such as 401(k)s. They have daily liquidity at NAV (net asset value) and trade at the end of each market day. They are available in Open-Ended and Closed-Ended versions and are usually perpetual in duration.

Unit Investment Trusts are pooled investments that have a specific discipline and stated maturity date. They have daily liquidity at NAV (net asset value) at the end of each market day.

Exchange Traded Funds are generally perpetual. Exchange Traded Notes (ETNs) are debt securities with stated maturities. Both ETFs and ETNs are traded throughout the market day.

At SOUND Wealth Management Group of Raymond James, we may utilize pooled products to provide a targeted focus within a financial plan.

There is no assurance any investment strategy will be successful. Investing involves risk including the possible loss of capital. Diversification does not guarantee a profit nor protect against loss.