Flows are rotating into Cross-Sector Defensive Cohort while Industrial & Defense Conglomerate Cohort weakens

🇪🇺 Flow shifted sharply toward defensive assets today, but the biggest inflow into $ULVR-L signals a cautious tilt within that theme. While 26 themes attracted capital, the standout was the $17.37 billion bid for the Cross-Sector Defensive Cohort, led by the UK retailer. Meanwhile, the Industrial & Defense Conglomerate Cohort saw the largest outflow of $8.28 billion, led by STMMI-MI, reflecting ongoing risk aversion away from cyclicals. This divergence underscores a market still favoring stability amid broader uncertainty. The inflow into defensive names confirms traders' appetite for safety, but the notable outflow from industrials warns against complacency. Next, watch whether ULVR-L’s bid sustains or if the outflows from cyclicals deepen, risking a further shift away from growth-oriented sectors.