The S&P 500 has seen significant growth in 2026, driven mainly by technology and AI stocks. However, portfolio manager Chris Versace decided to diversify by adding two new positions to TheStreet Pro Portfolio. On August 5, he initiated positions in the Health Care Select Sector SPDR ETF (XLV) and the Robo Global Robotics and Automation Index ETF (ROBO).
Versace’s decision to invest in healthcare and robotics aligns with the portfolio’s existing cybersecurity strategy and aims to capitalize on growth opportunities in these sectors over the coming years. The XLV position comprises 395 shares at around $164, representing 1% of the total portfolio assets. Similarly, the ROBO position includes 575 shares at approximately $84.50, making up about 0.75% of assets.
Both new positions have been given an initial rating of Two, reflecting caution amidst the current market conditions. Versace plans to gradually build up these positions over time, using market pullbacks as opportunities to add more shares.
The price targets set for XLV and ROBO are $180 and $95, respectively, with checkpoint levels at $144 and $70. If either ETF reaches these levels, Versace will reassess the position, although selling is not automatic.
XLV tracks the Health Care Select Sector Index, encompassing various healthcare-related industries. With over $41 billion in assets across 63 companies, XLV’s top holdings include Eli Lilly, Johnson & Johnson, and Merck. State Street’s upgraded outlook on healthcare from neutral to positive further supports the investment thesis behind XLV.
On the other hand, ROBO focuses on companies involved in robotics, automation, and artificial intelligence applications. Versace sees significant growth potential in the robotics market, driven by increasing demand for automation across industries like logistics, healthcare, and manufacturing. The recent depreciation provisions under the One Big Beautiful Bill also make investments in automation more attractive.
Versace plans to monitor Wall Street analysts’ updates on major holdings to reassess price targets for XLV and ROBO. Positive developments in healthcare or automation sectors could drive these targets higher. Additionally, a rotation of funds from tech stocks to healthcare and industrial names could benefit both positions.
Overall, Versace views these investments as long-term plays rather than short-term trades. With positions totaling less than 2% of the portfolio, there is room for adjustments based on market conditions. The strategy is to hold onto these positions and gradually increase exposure as opportunities arise.
