Commentary

Third Quarter 2026 Active Equity Allocation Report

Fidelity's quarterly active equity allocation analysis.

By: Anna Piralkova Claire Xu

Updated: 7/21/2026

Key Takeaways

Across most global markets, monthly return dispersion rose and stock-level return correlation decreased in the second quarter of 2026.
All the major U.S. indexes we track for this analysis reflected more positive than negative active equity indicators in Q2.
The Russell 2000 showed the greatest number of positive indicators overall, as the equity rally broadened beyond long-dominant technology mega cap stocks to include more small caps.
U.S. large cap stocks showed more positive than negative indicators overall, but with significant differentiation by sector and theme.
Conversely, the MSCI EAFE and MSCI EM Indexes reported mixed signals overall amid growing market concentration, especially among MSCI EM components.

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Third Quarter 2026 Active Equity Allocation Report

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