Voya Corporate Leaders® 100 Fund Quarterly Commentary - 2Q26

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. 

Over the reporting period, an underweight allocation to the information technology sector and overweight allocations to the consumer staples and health care sectors detracted the most from performance. Stock selection in the communication services, consumer discretionary, and industrials sectors also detracted from performance. On an individual stock level, the key detractors were our positioning in Accenture Plc., not owning SanDisk Corp., and an overweight position in NIKE, Inc. 

By contrast, stock selection in the information technology, financials, and consumer staples sectors contributed to performance. Underweight allocations to the energy, communication services, and materials sectors also contributed. Among the largest individual contributors were an overweight position in Intel Corp., an underweight position in Microsoft Corp., and an overweight position in Lam Research Corp. 

As of the end of the reporting period, the Fund’s largest sector overweight was to the industrials sector, while the largest sector underweight was information technology. Sector exposures are purely a function of the strategy’s rules-based investment discipline and are not actively managed.

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.

Companies mentioned in this report—percentage of Fund investments, as of 06/30/26: Accenture Plc. 0.99%, SanDisk Corp. 0.00%, NIKE, Inc. 0.98%, Intel Corp. 1.05%, Microsoft Corp. 1.00%, and Lam Research Corp. 1.05%; 0.00% indicates that the security is no longer in the Fund. Portfolio holdings are subject to daily change. *If a security is underperforming the S&P 500® Index and the S&P 500® Index is positive on an intra-quarter basis, the security will typically be sold when it declines by 30% or more, irrespective of the percentage difference versus the S&P 500® Index. If a security is underperforming the S&P 500® Index and the S&P 500® Index is negative on an intra-quarter basis, the security will typically be sold when it underperforms the S&P 500® Index by 30 percentage points or more. This change went into effect on 5/18/20.