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Voya Large Cap Value Fund Quarterly Commentary - 2Q26

Key Takeaways

Equity markets rose sharply in the second quarter, driven by resilient corporate earnings, easing geopolitical concerns, and continued enthusiasm surrounding artificial intelligence-related investment themes. Growth-oriented segments led the advance, supported by strength in semiconductor and AI infrastructure companies. Market participation broadened meaningfully during the quarter, with cyclical sectors and small cap stocks gaining traction as leadership expanded beyond the largest mega cap companies. 

For the quarter ended June 30, 2026, the Fund outperformed the Russell 1000 Value Index (the Index) on a net asset value (NAV) basis, due to favorable stock selection.

Equity markets are navigating a dynamic macro environment influenced by geopolitical developments, policy uncertainty, and evolving growth expectations. Continued corporate investment in AI and digital infrastructure remains supportive of earnings growth, though elevated valuations may leave portions of the market susceptible to periodic short-term pullbacks. As market leadership broadens beyond a narrow group of companies, we believe opportunities are becoming increasingly attractive across a wider range of sectors and styles.

Actively managed large cap value strategy that relies on fundamental research to capture the benefits of high excess capital yield and sustainable dividends.

Portfolio review

U.S. equity markets rebounded sharply in the second quarter, recovering from heightened geopolitical concerns surrounding the conflict between Israel, Iran, and the United States that briefly pushed the S&P 500 Index close to correction territory. Despite a period of volatility in June, when the S&P 500 declined approximately 1% as investors reassessed valuations following substantial gains in artificial intelligence-related companies, resilient economic data, solid corporate earnings and continued investment in AI infrastructure helped support risk appetite through quarter-end. The recovery drove the S&P 500 Index up 15.20% on a total return basis and lifted the Nasdaq Composite 21.41% on a price return basis, with both indexes posting their strongest quarterly gains since second quarter of 2020. Market leadership was driven largely by continued enthusiasm surrounding AI. Semiconductor, software, and memory companies led the advance, while energy, utilities, and consumer staples lagged. Small cap stocks outperformed large caps, and growth stocks beat value. 

However, investors became more selective, raising concerns about how companies will generate returns, as well as about competition and regulation. Market leadership within technology also became more differentiated amid periodic rotations. In addition, heightened initial public offering (IPO) and secondary issuance activity drew attention to the market's ability to absorb a growing supply of new equity. 

For the quarter ended June 30, 2026, the Fund outperformed the Index on a NAV basis due to favorable stock selection. Stock selection within the financials, materials, and communication services sectors contributed most to performance. Conversely, stock selection within the health care and energy sectors detracted most from performance. In addition, an overweight allocation to the utilities sector and a modest cash position were headwinds to performance. 

At the individual stock level, owning non-benchmark position in Micron Technology Inc. (MU), our position in Sandisk Corp. (SNDK), and not owning Exxon Mobil Corp. (XOM) contributed to performance the most. 

Owning a non-benchmark position in Micron Technology Inc. (MU) contributed to performance. Shares rose throughout the quarter on strong AI-driven demand and improving memory pricing and moved higher following a record earnings report that showcased significant revenue growth and robust data center demand. 

Our position in Sandisk Corp. (SNDK) contributed to performance, driven by strong AI-related demand for NAND memory used in high-speed storage applications, improving pricing trends, and rising expectations for data center growth. 

Not owning ExxonMobil Holdings Corp. (XOM) contributed to performance as lower oil prices and easing geopolitical tensions weighed on energy. 

Not owning Intel Corp. (INTC), overweight to Chevron Corp. (CVX), and our position in Advanced Micro Devices Inc. (AMD) were the biggest individual detractors. 

Not owning Intel Corp. (INTC) detracted from performance as the stock advanced alongside broader semiconductor strength, driven by optimism around AI-related infrastructure investment and improving industry demand expectations. 

An overweight position in Chevron Corp. (CVX) detracted from performance. Despite the company reported inline 1Q26 results, lower oil prices and easing geopolitical tensions weighed on the stock. 

Our position in Advanced Micro Devices Inc. (AMD) detracted from performance as shares rose following strong 1Q26 earnings results, favorable 2Q26 guidance, continued data center momentum, and robust AI-driven demand.

Current strategy and outlook

Broader market participation could continue if earnings growth remains strong and investor confidence stays firm. While semiconductor and memory companies are likely to remain key beneficiaries of ongoing AI infrastructure spending, leadership may gradually expand to other technology, industrial and cyclical sectors. A wider range of companies participating in market gains would help reduce reliance on a small group of mega cap technology stocks and make overall market performance less dependent on a handful of market leaders. 

Looking ahead, markets are likely to become more selective. Investors will focus on the sustainability of earnings growth, especially within AI supply chains. Rising costs, supply constraints, and increased equity issuance could add pressure and lead to greater volatility. In addition, increased IPO and secondary issuance activity may create a supply overhang, while heightened concentration in market leaders raises vulnerability to shifts in investor sentiment. As a result, performance will depend more on company fundamental factors, capital discipline, and the market’s ability to absorb new supply than on broad market momentum.

Holdings detail

Companies mentioned in this report—percentage of Strategy investments, as of 06/30/26: Micron Technology Inc. 0.86%, Sandisk Corp. 0.00%, ExxonMobil Holdings Corp. 0.00%, Intel Corp. 0.00%, Chevron Corp. 2.29%, and Advanced Micro Devices Inc. 0.00%, 0% indicates that the security is no longer in the portfolio. Portfolio holdings are subject to daily change.

Related Resources

Voya Large Cap Value Fund Fact Sheet

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The Russell 1000 Index includes approximately 1000 of the largest capitalization securities within the float-adjusted, market-capitalization-weighted Russell 3000 Index. The Russell 1000 Value Index includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values. Index returns do not reflect fees, brokerage commissions, taxes or other expenses of investing. Investors cannot invest directly in an index.

All investing involves risks of fluctuating prices and the uncertainties of rates of return and yield inherent in investing. You could lose money on your investment and any of the following risks, among others, could affect investment performance. The following principal risks are presented in alphabetical order which does not imply order of importance or likelihood: Company; Convertible Securities; Credit; Currency; Dividend; Environmental, Social, and Governance (Equity); Foreign (Non-U.S.) Investments/ Developing and Emerging Markets; Interest Rate; Investment Model; Liquidity; Market; Market Capitalization; Market Disruption and Geopolitical; Mid-Capitalization Company; Other Investment Companies; Preferred Stocks; Real Estate Companies and Real Estate Investment Trusts; Securities Lending; Small-Capitalization Company; Value Investing. Investors should consult the Fund’s Prospectus and Statement of Additional Information for a more detailed discussion of the Fund’s risks.


The strategy is available as a mutual fund or variable portfolio. The mutual fund may be available to you as part of your employer sponsored retirement plan. There may be additional plan level fees resulting in personal performance that varies from stated performance. Please call your benefits office for more information.Variable annuities and group annuities are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 59½, an IRS 10% premature distribution penalty tax may apply. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you. All guarantees are based on the financial strength and claims paying ability of the issuing insurance company, who is solely responsible for all obligations under its policies. Insurance products, annuities and funding agreements issued by Voya Retirement Insurance and Annuity Company (“VRIAC”), One Orange Way, Windsor, CT 06095, which is solely responsible for meeting its obligations. Plan administrative services provided by VRIAC or Voya Institutional Plan Services, LLC (“VIPS”). Securities distributed by or offered through Voya Financial Partners, LLC (“VFP”) (member SIPC) or other broker-dealers with which it has a selling agreement. Only Voya Retirement Insurance and Annuity Company is admitted and can issue products in the state of New York.


This commentary has been prepared by Voya Investment Management for informational purposes. Nothing contained herein should be construed as (i) an offer to sell or solicitation of an offer to buy any security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. Any opinions expressed herein reflect our judgment and are subject to change. Certain of the statements contained herein are statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (1) general economic conditions, (2) performance of financial markets, (3) interest rate levels, (4) increasing levels of loan defaults (5) changes in laws and regulations and (6) changes in the policies of governments and/or regulatory authorities. 
The opinions, views and information expressed in this commentary regarding holdings are subject to change without notice. The information provided regarding holdings is not a recommendation to buy or sell any security. Portfolio holdings are fluid and are subject to daily change based on market conditions and other factors. Past Performance does not guarantee future results.
 

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