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

🇪🇺 A sharp flow reversal is underway, with defensive sectors attracting massive inflows while cyclical themes are hemorrhaging capital. The $ULVR-L-led Cross-Sector Defensive Cohort drew +$27.10B, contrasting starkly with the $22.38B exit from the STMMI-MI-led Industrial & Defense Conglomerate group. This shift suggests traders are rapidly reallocating away from industrial and energy cyclicals into safer, broad-based defensive positions. The outflows from energy and industrials dominate the flow picture, signaling a risk-off tone that’s consolidating into defensive assets. Meanwhile, inflows remain concentrated in sectors like consumer staples and financials, echoing a flight to quality amid mounting macro uncertainty. The next move hinges on whether this defensive bid can sustain or if cyclical names stage a reversal - watch whether the inflows into ULVR-L hold steady in the coming sessions.