ELI5: Explain Like I'm 5

Fund derivative

A fund derivative is an investment that is based on the value of something else. For example, if you owned a fund derivative, it might be connected to the stock of a company. So, if that company's stock price went up or down, the value of your fund derivative would go up or down as well. But you don't actually own the stock, you just have a fund derivative that changes in value depending on the stock.