TheStreet Pro Portfolio shifts focus to healthcare and robotics amid tech dominance

Chris Versace, portfolio manager of the TheStreet Pro Portfolio, initiated new positions in the Health Care Select Sector SPDR ETF (XLV) and the Robo Global Robotics and Automation Index ETF (ROBO) on August 5, 2026. The moves represent a deliberate effort to diversify exposure away from the technology and artificial intelligence stocks that have driven the majority of the S&P 500’s gains in 2026. Versace purchased 395 shares of XLV at approximately $164 and 575 shares of ROBO at approximately $84.50. These stakes represent roughly 1% and 0.75% of total portfolio assets, respectively.

The decision follows the portfolio’s existing cybersecurity strategy and extends its exposure into two additional end markets that Versace expects to grow over multiple years. By utilising ETFs rather than picking individual stocks, the portfolio gains broad exposure without betting on a single company’s drug pipeline or regulatory outcome. XLV tracks the Health Care Select Sector Index, covering pharmaceuticals, biotechnology, medical devices, healthcare providers, and life sciences, with major holdings including Eli Lilly, Johnson & Johnson, AbbVie, Merck, and Amgen.

Both positions received an initial rating of Two, reflecting caution amidst the market's strong run. Versace plans to build these positions over time using pullbacks, with initial price targets of $180 for XLV and $95 for ROBO. The portfolio also set checkpoint levels at $144 for XLV and $70 for ROBO. If either ETF falls to those levels, Versace will conduct a review to determine if the investment thesis remains valid, rather than automatically selling.

Versace cited the ageing US population and healthcare’s lag behind large-cap technology over the past two years as key drivers for the healthcare allocation. For the robotics position, he pointed to the expanding market for automation across logistics, manufacturing, and agriculture, supported by labour shortages and cost-cutting pressures. He also noted that depreciation provisions in the One Big Beautiful Bill could provide a near-term boost by allowing companies to write off more automation spending.

The robotics trade is considered more sensitive to valuation and capital spending cycles than healthcare, which is why the initial position is smaller at 0.75% of assets compared with 1% for XLV. Versace intends to revisit price targets as Wall Street analysts update their numbers on the major underlying holdings during earnings season. He emphasised that these are not trading positions, but rather longer-term holdings sized to leave room for adjustment.