UnitedHealth Group (UNH) is set to report its Q4 earnings on January 27. Analysts expect revenue of about $113.77 billion, up 12.9% year‑over‑year. However, earnings are expected to drop 69.2% to $2.10 per share. Investor focus will remain on how effectively UNH manages medical cost ratios, policy risks, and operational execution to restore confidence and sustain long-term growth.
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Thus, this might be the right time to consider UNH stock, especially through exchange-traded funds (ETFs) that offer diversified exposure without the risk of holding the stock directly. Investors seeking exposure to UNH stock may consider the Harbor Health Care ETF (MEDI) and T. Rowe Price Health Care ETF (TMED).
Let’s take a deeper look at these two ETFs.
Harbor Health Care ETF
The MEDI ETF is an actively managed fund that targets long-term capital growth by investing in healthcare companies. The ETF provides exposure to UnitedHealth stock alongside other major players like Ascendis Pharma (ASND), Eli Lilly (LLY), and AbbVie (ABBV). Importantly, UNH accounts for 4.94% of the MEDI ETF’s total holdings.
Overall, the ETF has $26.97 million in assets under management (AUM). Also, it has an expense ratio of 0.8%. Over the past three months, the MEDI ETF has generated a return of 7.3%.
On TipRanks, MEDI has a Strong Buy consensus rating based on 36 Buys assigned in the last three months. At $42.20, the average MEDI ETF price target implies 30.94% upside potential.
T. Rowe Price Health Care ETF
The TMED ETF is an actively managed fund that aims to capture long-term growth opportunities in the healthcare sector, including pharmaceuticals, biotechnology, medical devices, and healthcare services.
UNH stock constitutes 7.46% of the ETF’s holdings. Apart from UnitedHealth, some of the top stocks in the TMED ETF are Thermo Fisher Scientific (TMO), Abbott (ABT), and Gilead Sciences (GILD). Overall, the ETF has $18.66 million in AUM. Also, it has an expense ratio of 0.44%. The TMED ETF has gained 6.17% in the past three months.
Turning to Wall Street, the ETF has a Strong Buy consensus rating. Of the 100 stocks held, 94 have Buys and six have Holds. At $38.85, the average TMED ETF price target implies a 26.36% upside potential.
Concluding Thoughts
ETFs provide indirect exposure to UNH stock, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider MEDI and TMED, as these ETFs offer exposure to UnitedHealth stock.