Buffett’s $1.6B UnitedHealth Buy Triggers 28% ETF Surge
Buffett’s bet on UnitedHealth sent the stock and healthcare ETFs surging, with one leveraged fund jumping 27%.
Healthcare stocks roared higher on Friday after Warren Buffett’s Berkshire Hathaway disclosed a major new stake in UnitedHealth Group Inc.
In its latest 13F filing, Berkshire revealed it bought 5 million shares of UnitedHealth in the second quarter, worth $1.6 billion at the end of June. At current prices, the position makes up about 0.5% of Berkshire’s publicly traded equity portfolio. Whether the move came from Buffett himself or one of his lieutenants remains unclear, but the market took it as a bullish sign.
UnitedHealth shares jumped 14% on the news, clawing back recent losses and returning to late-June levels. That rally made healthcare the best-performing sector of the day, with the Health Care Select Sector SPDR Fund (XLV) up 1.3% versus a fractional loss for the Vanguard S&P 500 ETF (VOO). UnitedHealth is XLV’s fourth-largest holding at 5% of assets.
The iShares U.S. Healthcare Providers ETF (IHF), where UnitedHealth accounts for a hefty 21% weighting, rose 3.8% midday Friday.
Meanwhile, the Leverage Shares 2x Long UNH Daily ETF (UNHG) spiked 28%.
From Collapse to Buffett Boost
UnitedHealth has endured a brutal year. Shares plunged from $625 in November 2024 to $238 in August, erasing more than half the company’s market value. 
A series of blows fueled the drop, including the death of the CEO of its insurance division, lowered and then suspended earnings guidance, the ouster of the company’s CEO, and surging healthcare costs—particularly for Medicare Advantage members returning for treatments delayed during the pandemic.
The company also faces a federal investigation into Medicare billing, with allegations it used in-house doctors to inflate diagnoses for higher reimbursements. Analysts now expect adjusted earnings of $16.23 per share this year, down from $27.66 in 2024. Consensus forecasts suggest profits may not reach last year’s levels for at least five years.
Berkshire’s second-quarter stock purchases likely came after the steepest declines, when shares traded near $300 from mid-May through late July. They hit new lows in early August before snapping back on Friday’s Buffett-fueled rally—meaning today’s buyers are paying prices similar to Berkshire’s.
ETFs as a Diversified Play
For those wanting exposure without the risk of a single-stock bet, diversified healthcare ETFs like XLV and IHF offer that. XLV covers all healthcare stocks within the S&P 500, from drugmakers to medical device firms to insurers.
IHF is more narrowly focused on healthcare providers, such as insurance companies and hospital operators, with UnitedHealth as its largest holding.
Healthcare remains the only S&P 500 sector in the red for 2025, with XLV down 0.6% versus a 10.5% gain for VOO.
