This Index’s Comeback Is a Lesson in Long-Term Investing

The MSCI USA Value Enhanced Value Index (M2USEV) has demonstrated a powerful comeback since 2025, outperforming the S&P 500 by 69.9% versus 25.4% through May 2026. The sector-neutral value index's resurgence, driven primarily by strong stock selection in semiconductors and memory chips, illustrates the importance of diversification and patience in long-term investing. The index has delivered 169.3% total returns since August 2020 versus 125.3% for the S&P 500, with semiconductor positions in Micron, Intel, Applied Materials, and Western Digital generating over three-quarters of the strategy's outperformance.