Flows are rotating into FRSH while ESE weakens

🇺🇸 Equities flow shifted notably today, with outflows surpassing inflows and a clear exit from $ESE (ESCO Technologies Inc.) dominating the picture. The market is seeing a net movement out of thematic exposures, with ESE alone accounting for a $188M exit - the largest single move this session. Meanwhile, fresh money is flowing into FRSH, which attracted $42M, signaling some sector rotation but not enough to counter the broad retreat. This divergence underscores a cautious tone as traders lock in gains or reduce risk in the ESE space while selectively adding to FRSH. The next key step is whether inflows into FRSH sustain and expand, or if the outflows from ESE and others deepen, confirming a broader risk-off mood. Watching if FRSH can hold its gains on continued inflow will clarify if this is a short-term bounce or the start of a more persistent shift.