ELI5: Explain Like I'm 5

Russell Small Cap Completeness Index

The Russell Small Cap Completeness Index is like a special list to help people understand and keep track of small companies.

Now, what are small companies, you might ask? Well, companies can be big or small, just like how some toys are big and some toys are small. Small companies are like the little toys that are just starting out in the world of business.

Now, this special list, called the Russell Small Cap Completeness Index, is made by a company called FTSE Russell. They want to make sure that they have all the small companies in their list, so that people can learn about them and see how well they are doing.

This list is like a big collection of small toys, where every company is like a little toy in the collection. FTSE Russell makes sure to include all the small toys, so they don't miss any of them. They want to make sure they have a complete set of small toys, kind of like how you want to have a complete set of your favorite toy.

But why is this list important? Well, when people want to invest their money in small companies, they need to know which ones are good and which ones are not doing so well. This list helps them because it shows how well each small company is doing, just like how you can see if a toy is popular or not by asking your friends.

By using this list, people who want to invest their money can make smarter decisions about which small companies to invest in. They can look at the list and see which small toys are the most popular and successful, just like how you would want the most popular and fun toys to play with.

So, the Russell Small Cap Completeness Index is like a big list of small companies that helps people know which ones are doing well and which ones are not. Just like how you would want to know which toys are fun to play with and which ones are not.