Value Stocks Outpace Growth by 12.8% in H1 2026, Reaching Widest Gap Since 2022

According to FactSet, value stocks surged 14.8% through June 12, significantly outpacing the Russell 1000 Growth Index's 2.7% gain—marking the largest first-half outperformance versus growth stocks since 2022. The Russell 2000 small-cap index closed at a record high on Friday.

Financial stocks now lead value-focused portfolios, with the iShares Russell 1000 Value ETF (IWD-US) showing greater diversification across finance, energy, healthcare, and industrials compared to growth-heavy peers. Analysts attribute the rotation to broadening corporate profit growth beyond technology and strengthening confidence in U.S. economic resilience.