Voya Large Cap Value Fund Quarterly Commentary - 4Q25
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Voya Large Cap Value Fund Quarterly Commentary - 4Q25

Key Takeaways

Equity markets advanced in 4Q25, buoyed by moderating inflation and robust earnings. Technology remained dominant, fueled by accelerating artificial intelligence (AI) adoption, while industrials benefited from strong capital expenditure trends, although energy softened after early strength. Broader market participation persisted, with small caps and cyclicals contributing.

For the quarter ended December 31, 2025, the Fund outperformed the Russell 1000 Value Index (the Index) on a net asset value (NAV) basis, due to favorable stock selection. Stock selection within the financials, materials, and information technology sectors contributed the most to performance. Conversely, the utilities, industrials, and health care sectors detracted from performance.

Looking ahead, investors face geopolitical risks and policy uncertainty. Market leadership is widening beyond mega-cap growth, supported by AI-driven innovation and sustained corporate capital expenditure. Opportunities are emerging in defensives and rate-sensitive sectors, reinforcing the need for nimble positioning amid evolving macro conditions.

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 closed 4Q25 on a positive note, driven by moderating inflation and robust earnings. The S&P 500 Index advanced 2.66%, and the technology-heavy Nasdaq Composite gained 2.57%. The healthcare and communications services sectors led, while real estate and utilities sectors lagged. Large cap stocks beat small cap stocks, and value outperformed growth stocks.

The U.S. Federal Reserve supported markets in 4Q25 with two 25 basis point rate cuts. At its December meeting, the Fed signaled a balanced tone and improved growth and inflation outlook. At the same time, AI remained a dominant theme, with strong headlines around innovation and elevated capital investment by major technology firms. Increased spending on AI infrastructure and adoption trends reinforced optimism about its role as a key driver of future growth. 

For the quarter ended December 31, 2025, the Fund outperformed the Index on a NAV basis due to favorable stock selection. Stock selection within the financials, materials, and information technology sectors contributed the most to performance. Conversely, the utilities, industrials, and health care sectors detracted from performance. 

At the individual stock level our overweight positions in Alcoa Corp. (AA), Dollar Tree, Inc. (DLTR), and Synchrony Financial (SYF) contributed to performance the most. 

Overweight to Alcoa Corp. (AA) contributed to performance, driven by higher alumina and aluminum prices and supported by robust demand from automotive, aerospace, and renewable energy sectors. 

An overweight position in Dollar Tree, Inc. (DLTR) contributed to performance following strong 3Q25 results, driven by robust seasonal demand, improved pricing, lower freight costs, and a favorable sales mix. Management also raised guidance, reinforcing the positive outlook. 

An overweight position in Synchrony Financial (SYF) contributed to performance as credit continued to trend, with Amazon Pay Later and Walmart One Pay performing slightly better than expected, and losses are controlled. 

Our overweight positions in Leonardo DRS, Inc. (DRS), AT&T Inc. (T), and BXP Inc. (BXP) were the biggest individual detractors. 

An overweight position in Leonardo DRS, Inc. (DRS) detracted from performance. While the company reported better than expected revenue and slightly better earnings before interest, tax, depreciation and amortization (EBITDA), shares came under pressure due to heightened volatility across the defense sector and policy uncertainty around U.S defense spending which outweighed the positive fundamental factors. 

An overweight position in AT&T Inc. (T) detracted from performance. The company reported mixed 3Q25 results, with strong EBITDA and free cash flow but softer revenues due to competitive pressures and concerns over wireless and broadband average revenue per user (ARPU) weighed on the stock. 

An overweight position in BXP Inc. (BXP) detracted from performance. Although the company reported better than expected 3Q25 revenue and raised fiscal year guidance, concerns over occupancy trends and policy uncertainty weighed on the stock, offsetting the positive fundamental factors.

Current strategy and outlook

The U.S. economy enters 2026 with a foundation of resilience. We expect moderate growth supported by consumer spending and productivity gains, helped by lower rates. The Fed’s recent rate cut reflects heightened concern over labor market softening and confidence that tariff-driven inflation pressures will fade. 

While the outlook suggests a soft landing with moderate growth and gradual disinflation, caution is warranted as geopolitical risks and policy uncertainty persist. In addition, broadening of the narrow market leadership beyond mega-cap growth, underpinned by AI innovation and corporate investment should support market growth.

Holdings detail

Companies mentioned in this report—percentage of Strategy investments, as of 12/31/25: Alcoa Corp. 1.09%, Dollar Tree, Inc. 0.97%, Synchrony Financial 1.55%, Leonardo DRS, Inc. 0.78%, AT&T Inc. 1.68%, and BXP Inc. 1.92%, 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

Related Products

Voya Large Cap Value Fund

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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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