Momentum stocks lead as S&P 500 gains 29.1% YTD
Momentum stocks have been the standout performers so far in 2026, with the iShares Momentum ETF up 29.1% year to date. Growth stocks followed, up 17.8%.
27% Welcome to the home for real-time coverage of markets brought to you reporters. You can share your thoughts with us at Momentum Remains The Factor To Beat September didn't make things easy for investors. 5%. Beneath that relatively modest decline, though, the market's factor race produced some clear winners and a long list of laggards.
As the fourth quarter gets underway, momentum remains the factor to beat. Factors are groups of stocks that share common traits, such as momentum, growth, value, quality, small-cap exposure or low volatility. Which styles lead tends to depend on the broader economic and market backdrop. So far in 2026, momentum has been the standout performer.
6% advance of the SPDR S&P 500 ETF. 8% this year, though it remains well behind momentum's blistering pace. 1% advance. 7% and narrowly edging out the SPY.
6%, have lagged modestly. Beyond that, performance drops off sharply. More defensive strategies have struggled to keep pace. 5%.
5%. Treasury yields surged and pressured more rate-sensitive corners of the market. Still, factor leadership can change quickly. Investors continue to grapple with geopolitical tensions, elevated oil prices, a 10-year Treasury yield near its highest level in almost 25 years, persistent inflation concerns and the approaching midterm elections.
Those crosscurrents could ultimately challenge momentum's dominance and create an opening for this year's laggards. If investors turn more risk-averse, defensive factors may regain favor, particularly if October lives up to its reputation for volatility.
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