A unit investment trust (UIT) is characterized by which of the following?

A unit investment trust (UIT) is characterized by static management by appointed trustees. Unlike mutual funds or other investment vehicles that are actively managed by professional fund managers aiming to outperform a market index, UITs are established with a fixed portfolio of securities that is not actively managed once created. Once the UIT is formed, its assets are set, and the trustees manage the trust and ensure that the portfolio remains intact until its predetermined termination date. This means that there are no additional purchases or sales within the trust's portfolio, which distinguishes it from other investment funds that may adjust their holdings regularly to achieve higher returns.

In contrast to the other options, UITs do not engage in continuous share buybacks, as they issue a set number of shares during their initial offering and investors typically redeem shares at the trust's net asset value rather than buying back shares. They also do not operate as open-ended investments because UITs are typically closed to new investment after the initial public offering, and their price does not change daily based on market activity like those in open-end funds.