ELI5: Explain Like I'm 5

ETF Securities

ETF securities are like a treasure chest that contains a bunch of different things. Each thing in the chest is called a share. People can buy a share of the treasure chest and own a little piece of everything inside.

Now, imagine that the treasure chest is full of stocks (which are little pieces of ownership in a company) instead of gold and jewels. This is what an ETF security is! It's like a treasure chest filled with different stocks from lots of different companies.

When you buy a share of an ETF security, you own a little piece of all the stocks inside the chest. This means you don't have to pick just one company to invest in - you can invest in lots of them all at once!

ETF securities can be bought and sold on the stock exchange just like individual stocks. They also usually have lower fees than mutual funds, which makes them a great option for people who want to invest in lots of companies without spending too much money.