Value stocks are Beating Growth this year 
One of the more surprising market storylines of 2026:
The Russell 1000 Value Index is up roughly 20%, while the Russell 1000 Growth Index is down around 1.6%.
That is a reversal from the past few years, where growth stocks dominated.
But the reason is not traditional “cheap value” stocks like banks, utilities or energy.
A June index reconstitution moved Apple, Amazon and Microsoft into the value index, while chip stocks like Micron, AMD and Western Digital were moved into growth near their peak. So value benefited from picking up megacap tech names near their lows, while growth got more exposed to semiconductors before they sold down.
The Russell Value Index still trades cheaper than growth, at about 18x forward P/E versus 26x for growth.
