Buffett Bets on UnitedHealth: How ETFs Let You Play the Rebound
After a 50% plunge, UnitedHealth just got a $1.6B lifeline from Warren Buffett. Here's four ETFs to watch.
In case you missed it, UnitedHealth has been through a rough year.
Long seen as one of the most dependable players in healthcare, the stock lost nearly half its value as soaring medical costs, disappointing earnings, and leadership shake-ups shook investor confidence.
Just as sentiment was hitting rock bottom, a legendary investor stepped in and changed the narrative. Here’s what you need to know.
What UnitedHealth Does
UnitedHealth Group (UNH) is the largest U.S. health insurer and a powerhouse in healthcare services. Its UnitedHealthcare unit covers millions of Americans with insurance plans, while Optum provides pharmacy benefit management, healthcare delivery, and data-driven solutions. This combination makes UnitedHealth both an insurer and an operator, giving it unmatched reach across the healthcare system.
A Brutal Year for UNH
Despite its scale, 2025 has been painful. As of August 1, the stock had fallen more than 53% year-to-date. Soaring medical costs outpaced premium growth, margins eroded, and investors lost confidence.
The sudden resignation of CEO Andrew Witty, multiple earnings downgrades, and a Department of Justice probe into potential Medicare fraud only deepened the slide, wiping out billions in market value.
Buffett Sparks a Rebound
Just when the outlook seemed darkest, Warren Buffett’s Berkshire Hathaway revealed a $1.6 billion stake in UnitedHealth.
Source: 13F Filings.
The move was seen as a powerful vote of confidence and lit a fire under the stock. Within a week, shares surged 21% as investors piled back in, betting that Buffett’s call could mark the beginning of a turnaround.
How to Play UNH's Stock Boom with ETFs
Investors who believe UnitedHealth still has more room to run could simply buy the stock. But another way to gain exposure is through healthcare-focused ETFs, which provide diversification and a built-in safety net by holding multiple stocks.
- BMO Global Health Care Fund Active ETF (BGHC): The fund is actively managed with a focus on global healthcare equities, offering targeted exposure to leading medical, pharmaceutical, and biotechnology companies. It provides investors with a way to participate in long-term healthcare growth trends through a diversified but active strategy. Holds about 5% in UnitedHealth.
- Harvest Healthcare Leaders Income ETF (HHL): Focuses on large-cap U.S. healthcare leaders, combining innovation with steady demand. The fund offers income and growth potential, with a current 5% allocation to UnitedHealth.
- Middlefield Healthcare Dividend ETF (MHCD): Actively managed and diversified across healthcare, life sciences, and biotech companies. It emphasizes dividend-paying stocks and currently allocates 3.8% to UnitedHealth.
If you’re seeking a stronger income stream with higher exposure to UnitedHealth Group (UNH), consider the UnitedHealth Group Yield Shares Purpose ETF (YUNH).
The fund combines two key objectives: long-term capital appreciation from holding UNH shares (with moderate leverage of about 25%) and monthly steady income (~50% monthly yield) through a covered call and cash-secured put strategy.
Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
