Russell 2000

Will SMidCaps Outperform In 2026?

Will the S&P 400 MidCaps and the S&P 600 SmallCaps (i.e., SMidCaps) finally outperform the S&P 500 LargeCaps this year? Maybe. They’re overdue to do so. However, we think investors would be better off focusing on select SMidCaps sectors rather than the broad indexes. We would overweight the same SMidCap sectors as we recommend overweighting in the S&P 500: Financials,