Unit investment trusts, a cross-breed of mutual funds and ETFs were unpopular in 2008, but now they're back — and doing much better than stock funds, Wall Street Journal
reporter Jason Zweig writes.
Total assets have tripled, rising last year by 20 percent to $72 billion. They're not necessarily a great deal for investors, however, unless they rely on brokers to do most of the work, in which case they're cheaper than a mutual fund, Zweig explains.
Zweig interviewed Dominick Cogliandro, head of DWS Investments
] Guggenheim's UIT operations, who, as expected, does not agree that cost is the most important factor in making an investment.
"Cheaper is not always better," he said. "UITs offer a more disciplined approach."
Some PMs also argued that the appeal of UITs lies in diversification and outperformance rather than the tracking of an index.
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