If the first quarter was a reminder that diversification protects you on the way down, the second quarter was a reminder that it rewards you on the way up.
It was a broadly strong three months, and — as usual — the biggest gains showed up in the places many investors are tempted to leave out. Emerging markets led the way, and international stocks were close behind. The headline U.S. index did well too, but it was not the star of the quarter.
Here is how the major pieces of a globally diversified portfolio did over the quarter (April 1 – June 30, 2026):
U.S. stocks: +15.4%
International developed markets: +10.2%
Emerging markets: +24.1%
Global real estate: +10.8%
Bonds (U.S. and global): modestly positive
A few things stand out. Emerging markets — the very asset class that tests investors’ patience during quieter stretches — outpaced both U.S. and international developed stocks. Within the U.S., smaller companies outperformed the largest ones, another reminder that the familiar large-cap headline index tells only part of the story.
None of this comes from predicting which corner of the market will lead. It comes from owning all of them, all the time, and staying disciplined enough to hold the pieces that feel unexciting right up until the quarter they aren’t. Our models are built to capture exactly this kind of broad participation, and the more equity-tilted models naturally saw the strongest results this quarter.
It’s also worth keeping the ups and downs in perspective. The S&P 500 had one of its roughest single days in thirty years in early June — and still finished the first half of the year up around 8%. The steadiest path through moments like that is usually the boring one: stay diversified, keep your time horizon long, and open your statements a little less often.
As always, past performance is no guarantee of future results, and nothing here is a promise about what comes next. It’s simply a look back at a quarter that, once again, made the case for diversification.
See here for our Standard Portfolio Results and Social Portfolio Results.
Want to really dig in — see our 16-page Q2 Quarterly Market Report.