The R2000 surged 21.5% in 2Q26, its best quarter since 4Q20 and its eighth best of the 190 quarters since 1978. 2Q26 ranked as the R2000’s 23rd best relative with the R2000 beating the S&P 500 on a majority of trading days for the first time in four years. R2 Growth (up 25.7%) far outpaced R2 Value (up 17.2%), though Value still leads on a trailing one-, three- and five-year basis. The quarter capped a 22.6% first half, the R2000’s best start to a year since 1991 and the strongest mid-term-election-year first half on record, over 1800 bps ahead of the next best (1998, up just 3.5% at mid-year). 55% of R2000 constituents are beating the S&P 500 YTD (the highest since 2016) with more than 80 stocks doubling (the largest cohort since 4Q20). The R2000 has fallen on only 40% of trading days YTD (the fewest since 1997). With the rally now 12% above the average bull-market advance, some near-term consolidation would be normal though 20+% quarters have historically been followed by an up quarter 78% of the time. Since July ’25, small-caps have outperformed large-caps by 1875 bps arguing we have finally broken the longest large-cap outperformance cycle that lasted over 14 years.