US Mutual Fund Performance Update: Active funds tracking 38% hit rate YTD against an increasingly challenging bogey

Research evidence excerpt

US Mutual Fund Performance Update: Active funds tracking 38% hit rate YTD against an increasingly challenging bogey

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US Mutual Fund Performance Update

Active funds tracking 38% hit rate YTD

against an increasingly challenging bogey

Large actives rebounded in June but lag YTD 06 July 2026

53% of large cap active funds beat their Russell benchmarks in June, but earlier Equity and Quant Strategy

weakness left the 1H hit rate at 38%, in line with the long-term annual avg. of 37% but United States

up from 29% in 2025. Growth fared best in 1H, with 57% outperforming vs. 25% of Core Victoria Roloff

and 18% of Value. Value funds faced the highest hurdle (Russell 1000 Value +16% vs. Equity & Quant Strategist

Russell 100 Growth +5%) and were hurt by a lack of exposure to a handful of Semis and BofAS+1 646 743 6339

Hardware stocks that drove returns: MU, INTC, SNDK, AMAT, and AMD added 7ppt of victoria.roloff@bofa.com

the benchmark’s 1H return, but all were underweight by Value funds we track. A chase Savita Subramanian

to own June winners is not warranted for Value managers since all but INTC were EquityBofAS & Quant Strategist

removed from the Value benchmark in the latest rebalance (more below). +1 646 855 3878

savita.subramanian@bofa.com

Post-index rebalance, concentration intensifies

After the largest Russell index rebalance on record, benchmarks are more lopsided than

ever. Despite improving breadth and higher dispersion, where both favor stock selection,

Exhibit 1: June 2026 performancemega caps have and will likely matter more than ever. The Russell 1000 Growth Index

quartile

best illustrates the challenge: despite containing 365 companies, its concentration is Large cap active fund performance