Flows are rotating into Aerospace & Defense Focus while Transport & Infrastructure Cohort weakens

🇪🇺 A clear shift away from transport and infrastructure stocks is underway, with $AENA-MC leading a $1.93B exit and broad outflows across the sector, signaling waning confidence in that theme. Meanwhile, inflows are increasingly concentrated into aerospace and defense, led by AVIO-MI with a $646M bid, reflecting a growing appetite for defense-related assets. The divergence marks a significant rotation out of cyclical infrastructure into more defensive aerospace, but the overall flow count remains balanced with 33 outflows to 27 inflows, keeping the market's directional bias uncertain. The key takeaway is that the market's dominant flow is now favoring defense over transport, confirmed by the strong bid for AVIO-MI alongside the large outflow from AENA-MC. This rotation could signal a shift in risk sentiment, with investors favoring defense amid geopolitical concerns. Next, watch whether this inflow into aerospace sustains or if broader cyclicals regain ground, which would be necessary to confirm a more sustained flow shift.