Voya MI Dynamic Small Cap Fund underperformed the Russell 2000 Index due to stock selection challenges, including weakness in CLF.
Cleveland-Cliffs Inc. (CLF) faced pressure in Q1 2026 as equity markets navigated geopolitical risks and policy uncertainty. The Voya MI Dynamic Small Cap Fund underperformed its benchmark, the Russell 2000 Index, on a net asset value basis, driven by stock selection issues in the quarter.
Markets remained range-bound amid volatility, with large-cap tech and software stocks struggling due to AI disruption concerns. Value stocks showed resilience, though growth counterparts declined. A shift toward defensive and quality-focused sectors emerged as investors prioritized selective positioning.
The fund’s underperformance highlighted challenges in small-cap equities, with CLF among the holdings weighing on returns. The steel producer’s struggles reflected broader sector dynamics in a volatile quarter.