Sector rotation doesn't always mean money moving from sector to sector. In many cases, investors see capital moving from large-cap to small-cap stocks. That's precisely the shift playing out in 2026, and the numbers back it up.
Through July 21, small-cap benchmarks have meaningfully outpaced the S&P 500 over the trailing three months, as investors rotate away from mega-cap concentration risk and into names with more room to run.
