We’re Initiating New Positions in 2 ETFs

Symbol	Transaction Type	# Shares Traded	Recent Price $	Shares Owned After Trade	% Portfolio
XLV	Buy	395	164.03	395	1.0
ROBO	Buy	575	84.64	575	0.7

After you receive this alert, the Pro Portfolio will make the following trades:

— Buy 395 shares of the State Street Health Care Select Sector SPDR ETF (XLV) at or near $164. Following the trade, we will own 395 XLV shares, accounting for roughly 1.0% of the Pro Portfolio’s assets.

— Buy 575 shares of the Robo Global Robotics and Automation Index ETF (ROBO) at or near $84.50. Following the trade, we will own 575 ROBO shares, accounting for roughly 0.75% of the Pro Portfolio’s assets.

Earlier this week, we discussed how the Pro Portfolio has been doing some work in the healthcare area and while we continue on that front, we are dipping our toe into the space through the broad-based exposure found in XLV shares. Key constituents of the ETF’s underlying basket include Eli Lilly (LLY), Johnson & Johnson (JNJ), AbbVie (ABBV), Merck (MRK) and Amgen (AMGN).

At some point we may elect to blend our healthcare exposure between XLV and an individual healthcare stock, or we may opt to simply increase our exposure to XLV. A determining factor in that decision will be risk-to-reward tradeoffs vs. the overall opportunity at that time.

In a similar fashion, we are also starting a position in ROBO shares, which will bring us exposure to the robotics and automation sectors. Some would argue the robotics market opportunity is becoming too big too ignore, and much the way we see a growing number of signals for AI adoption in the public safety market, we are seeing ones for automation investment. In our view, the markets that ROBO adds exposure to for the Portfolio are also ones that will drive additional demand for compute and networking, similar to what we expect from autonomous vehicles.

Because these are two new positions for the Portfolio, our initial buys are on the smaller side, and our plan is to build our exposure incrementally, preferably using pullbacks. That strategy helped us build our position size in the First Trust Nasdaq Cybersecurity ETF (CIBR). However, based on developments in the market that could trigger a re-think on our respective price targets, that may also lead us to pick up more shares at higher prices. With that in mind and because of the market’s recent melt-up, we’re opting to start both new positions with Two ratings.

As with all our moves, we’ll balance potential opportunity against risk, being mindful of key support levels and other technicals. With an aging population serving as a healthcare tailwind, and the confluence of robotics, automation and, for now, the positive impact of the One Big Beautiful Bill on depreciation, we are inclined to be longer-term holders of these exposures.

As we get started, our initial price targets are $180 for XLV and $95 for ROBO. Our respective checkpoint levels are $144 and $70. As Wall Street price targets for key underlying holdings in each ETF are adjusted over the course of the current earnings season, we’ll look to revisit these initial targets along the way.

More Pro Portfolio:

(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade’s executed price here. Be sure to toggle the chart to sort by Purchase Date.)

At the time of publication, TheStreet Pro Portfolio was long CIBR.