Understanding investments is an important part of choosing the right investments for your financial goals. Exchanged Traded Funds and Unit Investment Trusts are two options that can be the right investments for your portfolio. AOG Wealth Management examines both ETFs and UITs to help you understand what makes them unique and their benefits.
Exchanged Traded Funds (ETFs)
Initiated in the late 1980s as an alternative to mutual funds, ETFs are marketable securities that track indices, commodities, and bonds. These differed from mutual funds in that these trade like common stock. ETFs are attractive to those seeking wealth management investments in Reston and the surrounding areas because these have higher liquidity on a daily basis and lower fees. All these make ETFs particularly attractive to individual investors. Advantages include:
Unit Investment Trusts (UITs)
The “unit” from the trust comes from redeemable options offered by investment companies for specific periods of time based off a fixed, unmanaged portfolio — usually of stocks and bonds. Brokers handle these sales at a steady price of $ 1,000. These UITs can then be resold at the secondary market at an investor’s discretion. You may find that UITs can be a grantor trust — granting investors ownership proportional to the UITs’ underlying securities. These can be a regulated investment corporation as well, with investors jointly owning the corporation. The advantages of UITs include:
If you experience any trouble discerning which option suits you, give AOG Wealth Management a call. We’ll be more than happy to help with your financial decisions. We aim to continue building the strong foundations of relationships that allow us to provide you with exceptional wealth management.
Contact us today and we will be happy to provide you with a free, no-obligation financial consultation.
The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation.