Millennials love these 10 ETF funds

Millennials are latching onto ETFs faster than older generations. These are the most popular ETFs among young investors, according to TD Ameritrade.

1.  SPDR S&P 500 ETF

SPY ETF investing
  • Ticker: SPY
  • Expense ratio: 0.09%
  • Morningstar rating: 4 stars
  • YTD performance: +2%
  • Five-year performance: +92%

Millennials are getting to know exchange-traded funds and they love them.

ETFs are easy to understand. They trade just like stocks -- you can buy and sell them online -- but they can also be less risky. An ETF is made up of a basket of stocks, which means you're not betting on the fortunes of a single company.

Investors of all ages love how cheap they are, with fees that are far lower than mutual funds because they track relatively well-known indexes.

Millennials' favorite ETF is the world's largest and best known, the SPDR S&P 500 ETF, according to TD Ameritrade data provided to CNNMoney.

Known simply as "SPY," this ETF tries to mirror the performance of the S&P 500, the benchmark index that is home to large American companies like Apple (AAPL), Nike (NKE) and Visa (V).

Related: The No. 2 most popular fund on the planet is 'SPY'

SPY's track record is stellar: It's beaten 80% of active mutual funds over the past five years, according to State Street.

Other popular S&P 500 ETFs among Millennials include the iShares Core S&P 500 ETF and the Vanguard S&P 500 ETF, according to TD Ameritrade.

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  @MattEganCNN - Last updated June 17 2015 12:32 PM ET