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

🇪🇺 Flow shifted sharply today as defensive themes dominate while industrial and growth cohorts retreat. The most consequential move is a $45.66 billion inflow into the Cross-Sector Defensive Cohort led by $ULVR-L, contrasting with a $27.47 billion exit from the Industrial & Defense Conglomerate Cohort led by STMMI-MI. The outflows from industrial and growth themes signal a cautious stance, even as defensive positions accumulate. This pattern confirms a shift toward safety amid ongoing volatility. The next test is whether defensive inflows hold and expand, or if industrial and growth outflows accelerate, risking a broader risk-off environment. The market’s next move will hinge on whether defensive flows sustain or if the outflows from cyclical sectors intensify further.