The S&P 500 (^GSPC +1.57%) is up around 9% year to date through July 30. That’s a solid return for investors, but the multiple market rotations we’ve seen just in 2026 alone mean better returns have been coming from different areas of the market.
Most investors are focused on tech, artificial intelligence (AI), and semiconductor stocks this year. Those groups are still outperforming the broader market year to date, but the current correction and volatility associated with them may have investors thinking twice right now.
The more consistent outperformers of 2026 are sectors and themes that many investors probably haven’t thought about much over the past few years:
- Consumer staples
- Real estate
- Value
- Small-caps
It’s the intersection of those last two groups that might be the most interesting. Small-cap value stocks have underperformed the S&P 500 for years. Their valuations have been…
