Value stocks outperformed growth stocks significantly in 2026. The Russell 1000 Value Index posted substantial gains while its growth counterpart lagged. Traditional sectors including energy and industrials drove this market rotation.
The annual FTSE Russell reconstitution in June partially reclassified Apple and Microsoft into the value index. AI-related companies fueled a significant portion of the Russell 1000 Value’s returns during the first half of the year. This shift challenges the traditional definition of value investing.