UnitedHealth Group (UNH), the largest U.S. health insurer, witnessed a turbulent year due to weak Q2 earnings and a lower full-year outlook. However, the company’s performance is expected to improve in 2026 due to its efforts to reduce costs, improve pricing, and operational efficiency. 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.
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Thus, investors seeking exposure to UNH stock may consider the Simplify Health Care ETF (PINK) and the T. Rowe Price Health Care ETF (TMED).
Let’s take a deeper look at these two ETFs.
Simplify Health Care ETF
The PINK ETF is an actively managed fund that invests in innovative U.S. healthcare companies across biotech, medtech, gene therapy, and more. It aims for long-term capital appreciation. The ETF provides exposure to UnitedHealth stock alongside other major players like AbbVie (ABBV), Eli Lilly (LLY), and CVS Health (CVS). Importantly, UNH accounts for 6.3% of the PINK ETF’s total holdings.
Overall, the ETF has $156.06 million in assets under management (AUM). Also, it has an expense ratio of 0.5%. Over the past three months, the PINK ETF has generated a return of 10%.
On TipRanks, the PINK ETF has a Strong Buy consensus rating based on 55 Buys and 10 Holds assigned in the last three months. At $38.25, the average PINK ETF price target implies 16.85% 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 7.96% of the ETF’s holdings. Apart from UnitedHealth, some of the top stocks in the TMED ETF are AbbVie, Abbott (ABT), and Intuitive Surgical (ISRG). Overall, the ETF has $13.33 million in AUM. Also, it has an expense ratio of 0.44%. The TMED ETF has gained 10.8% in the past three months.
Turning to Wall Street, the ETF has a Strong Buy consensus rating. Of the 100 stocks held, 89 have Buys, 10 have Holds, and one Sell rating. At $34.24, the average TMED ETF price target implies a 22.3% 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 PINK and TMED, as these ETFs offer exposure to UnitedHealth stock.