UnitedHealth Group Faces Regulatory Scrutiny, Leading to Major Stock Decline
UnitedHealth Group (NYSE:UNH) witnessed a sharp decline in its stock price on Friday morning following reports that the U.S. Department of Justice (DoJ) has launched a new investigation into the company’s business practices. The news sent shockwaves through the market, causing UNH shares to plunge 9.4%.
Ripple Effect on Exchange Traded Funds
The steep decline in UNH stock has had a cascading impact on several exchange traded funds (ETFs) with significant exposure to the healthcare giant. Below are the top 10 ETFs with the highest weightings in UNH, all of which traded lower on Friday:
Top 10 ETFs Holding UnitedHealth Group:
10. iShares Global Healthcare ETF (NYSEARCA:IXJ): 6.26% weighting in UNH
9. SPDR Dow Jones Industrial Average ETF Trust (NYSEARCA:DIA): 6.90% weighting in UNH
8. Global X Dow 30 Covered Call & Growth ETF (NYSEARCA:DYLG): 6.95% weighting in UNH
7. Global X Dow 30 Covered Call ETF (NYSEARCA:DJIA): 6.99% weighting in UNH
6. JPMorgan Healthcare Leaders ETF (NASDAQ:JDOC): 7.54% weighting in UNH
5. Fidelity MSCI Health Care Index ETF (NYSEARCA:FHLC): 7.57% weighting in UNH
4. Vanguard Health Care ETF (NYSEARCA:VHT): 8.05% weighting in UNH
3. iShares U.S. Healthcare ETF (NYSEARCA:IYH): 8.51% weighting in UNH
2. Health Care Select Sector SPDR Fund (NYSEARCA:XLV): 8.73% weighting in UNH
- iShares U.S. Healthcare Providers ETF (NYSEARCA:IHF): 20.77% weighting in UNH
Year-to-Date Performance Overview
Despite UNH’s 9.9% year-to-date decline, several ETFs with substantial holdings in the company have remained in positive territory:
- IXJ: +6.6%
- DIA: +2.9%
- DYLG: +3.7%
- DJIA: +3%
- JDOC: +7.4%
- FHLC: +5.9%
- VHT: +5.8%
- IYH: +5.4%
- XLV: +6.1%
- IHF: +5%
Market Reactions and Future Implications
The sharp decline in UNH’s stock highlights investor concerns over the impact of the DoJ investigation. With significant holdings in major ETFs, the broader healthcare sector could experience increased volatility as more details on the probe emerge. Investors are closely monitoring developments to assess potential long-term implications for UnitedHealth Group and related funds.
