
U.S. small-cap equities showed robust gains in the second quarter of 2026, with the Russell 2000 Growth Index up 25.71%, outperforming the Russell 2000 Value Index's 17.19% increase. The Harbor Human Capital Factor US Small Cap ETF returned 20.45% during this period, driven by strong performances from companies like Twist Bioscience and Semtech. Improved economic conditions and increased spending on Artificial Intelligence contributed to the positive momentum. This trend highlights growing investor interest in growth-oriented small-cap stocks and AI-related sectors.