Voya Small Cap Growth Fund Quarterly Commentary - 2Q26

• Equity markets rose sharply in the second quarter, driven by resilient corporate earnings, easing geopolitical concerns, and continued enthusiasm surrounding artificial intelligence-related investment themes. Growth-oriented segments led the advance, supported by strength in semiconductor and AI infrastructure companies. Market participation broadened meaningfully during the quarter, with cyclical sectors and small cap stocks gaining traction as leadership expanded beyond the largest mega cap companies. 
• For the quarter ended June 30, 2026, the Fund outperformed the Russell 2000 Growth Index (the Index) on a net asset value (NAV) basis, due to stock selection. 
• Equity markets are navigating a dynamic macro environment influenced by geopolitical developments, policy uncertainty, and evolving growth expectations. Continued corporate investment in AI and digital infrastructure remains supportive of earnings growth, though elevated valuations may leave portions of the market susceptible to periodic short-term pullbacks. As market leadership broadens beyond a narrow group of companies, we believe opportunities are becoming increasingly attractive across a wider range of sectors and styles.

For the quarter ended June 30, 2026, the Fund outperformed the Index on a NAV basis, due to stock selection. Positive stock selection in the information technology, health care, and financials sectors was the leading contributor to outperformance along with an overall positive allocation effect. Stock selection in the consumer discretionary sector and holding cash were the largest detractors to performance. 

Top individual contributors to performance included Silicon Motion Technology Corp., Allegro MicroSystems, Inc., and Onto Innovation, Inc. 

Silicon Motion Technology Corp. (SIMO) is a leading developer, manufacturer and supplier of NAND flash controllers to the electronics market. SIMO delivered a beat-and-raise result in 1Q26 that resulted in substantial outperformance. SIMO’s growing technological moat, significant demand and expanding margin profile were all positive catalysts supporting the price increase. Although we reduced our position late in the quarter, we remain constructive on the stock. 

Allegro MicroSystems, Inc. (ALGM) is a designer and manufacturer of high-performance magnetic sensors and power integrated circuits that serve as critical components in automotive electrification and advanced industrial applications. Shares of Allegro contributed to performance following another quarter of largely better-than-expected results, driven by strength in its core automotive end market as well as emerging industrial opportunities across data centers, robotics, and other applications. We have taken some profits and reduced our position slightly but continue to hold shares, supported by our expectation of further content gains across both major end markets. 

Onto Innovation, Inc. (ONTO), a designer, developer and manufacturer supporting high-performance control metrology, defect inspection, lithography, and data analysis systems used by microelectronics device manufacturers was a top performer for the quarter, up over 80%. Strong demand for the company’s Dragonfly system, an automated optical inspection platform used by semiconductor manufacturers supplying advanced chips used in AI, fueled positive 1Q 2026 earnings and resulted in a continued increase in revenue guidance. After trimming part of our position during the quarter, we continue to hold this non-benchmark name at quarter-end, but at a smaller position size. 

Top individual detractors included Five Below, Inc., Credo Technology Group Holding Ltd., and Northern Oil and Gas, Inc. 

Five Below, Inc. (FIVE), a value retailer offering products ranging from fashion and leisure to party and snack items, was a negative contributor for the period. Despite driving sizable upside to both revenue and earnings during the previous earnings period and robust guidance, FIVE was pressured during the quarter. We continue to believe strongly in the initiative of the new CEO regarding merchandising and marketing strategies, footprint expansion and margin enhancement through supply chain efficiency. Despite recognizable consumer demographic headwinds, we favor the long-term fundamental factors and continued to hold our position at quarter end. 

Credo Technology Group Holding Ltd. (CRDO), a specialized semiconductor innovator providing high-performance connectivity solutions that serve as a critical foundation for modern AI infrastructure and hyperscale data centers, significantly outperformed on the heels of robust 1Q26 earnings and proactive management guidance. After purchasing a below benchmark weighting in CRDO early in the quarter, the stock significantly outperformed, resulting in sizable market cap and valuation expansion. With the expected Russell 2000 Growth benchmark reconstitution at quarter end and the removal of CRDO, we sold our position late in the quarter. 

Northern Oil and Gas, Inc. (NOG), engages in the acquisition, exploration, development, and production (E&P) of crude oil and natural gas properties primarily in the Bakken and Three Forks formation within North Dakota and Montana. In addition to the volatile geopolitical environment impacted on crude oil, NOG’s acquisition of a 25% stake in light-oil Duvernay assets was viewed as strategically sound but the deal structure was viewed as dilutive to net asset value and pressured the stock. Although we continue to hold the position, we are monitoring future trends to ensure our investment thesis is intact.

As the potential for a resolution with the United States and Iran conflict became more imminent, markets breathed a sigh of relief and resumed their upward trajectory during the most recent quarter. The momentum surrounding prominent themes, specifically AI, returned and corporate results for 1Q26 were overwhelmingly positive with many companies beating estimates and raising guidance for the remainder of 2026. However, macro headwinds persisted with volatile oil prices and inflation rising above 3%, pressuring a struggling low-end consumer and causing a new U.S. Federal Reserve chairman to pivot to a more hawkish bias. 

The second quarter Russell Index reconstitutions were historic in magnitude. Over 250 names were removed and then added to the Russell 2000 Growth benchmark and several names that had substantially outperformed over the last 12 months and reached outsized market capitalizations were removed from the benchmark (Example: Bloom Energy had a market capitalization of $95 billion and represented a 3.25+% weighting in our Russell 2000 Growth benchmark on the day of the reconstitution). In addition, there were significant changes related to sector weightings with the most prominent changes being a reduction in the industrials sector by over 700 basis points and an increase in health care, specifically in biotechnology and specialty pharma from 14% to 20%. As a result, our team implemented a well-thought-out strategy to accommodate these changes and position the portfolio to reduce relative risk. 

As mentioned in the prior quarter’s commentary, we have reduced exposure to interest rate sensitive areas of the market while being mindful of a potential broadening that could bode well for many cyclical stocks and previously unloved areas such as health care. After continued price appreciation in AI exposed holdings, we have been reducing several positions and, in some cases, exiting positions in their entirety. This is not to say we do not believe strongly in the continued capital expenditures cycle surrounding AI, but we are mindful of the risk versus reward trade off and the magnitude of the overweight to this well-publicized theme following sizable performance this past quarter. Stock prices do not appreciate linearly, and it is becoming increasingly important to monitor revision cycles and those companies that have provided visible upside to numbers. Any failure to meet expectations could result in significant reversals in individual stock prices and overall industry, sector and/or market expectations. We continue to be constructive on the small cap asset class and believe that earnings per share growth expectations for 2H 2026 and 2027 remain attainable and valuations relative to large caps continue to be attractive.

Companies mentioned in this report—percentage of portfolio investments, as of 06/30/26: Silicon Motion Technology Corp. 2.51%, Allegro MicroSystems, Inc. 1.82%, Onto Innovation, Inc. 1.46%, Five Below, Inc. 1.45%, Credo Technology Group Holding Ltd. 0.00%, and Northern Oil and Gas, Inc. 0.64%; 0% indicates that the security is no longer in the Fund. Portfolio holdings are subject to daily change.