ETFs in Focus Post UnitedHealth's Mixed Q4 Results

Core Insights - UnitedHealth Group (UNH) reported mixed fourth-quarter 2024 results, exceeding earnings estimates but missing revenue expectations, leading to a nearly 6% drop in shares following the announcement [1][3]. Financial Performance - Earnings per share reached $6.81, surpassing the Zacks Consensus Estimate of $6.71 and up from $6.16 in the previous year [3]. - Revenues increased by 6.8% year-over-year to $100.8 billion, but fell short of the estimated $102.2 billion due to weakness in the health insurance segment [3]. - Optum revenues rose by 9.4% to $65.1 billion, with expectations to serve an additional 650,000 patients in 2025 [4]. - The medical ratio increased to 87.6%, with management forecasting it to be in the range of 86%-87% for 2025 [4]. - UnitedHealth affirmed its 2025 revenue guidance of $450-$455 billion and earnings per share of $29.50-$30.00 [4]. ETF Focus - Several ETFs with significant allocations to UnitedHealth, such as iShares U.S. Healthcare Providers ETF (IHF), Health Care Select Sector SPDR Fund (XLV), iShares U.S. Healthcare ETF (IYH), Vanguard Health Care ETF (VHT), and Fidelity MSCI Health Care Index ETF (FHLC), are highlighted due to their exposure to the company [2]. - iShares U.S. Healthcare Providers ETF (IHF) has $691.9 million in assets, with UNH holding a 23% share [5][6]. - Health Care Select Sector SPDR Fund (XLV) has $38.2 billion in assets, with UnitedHealth accounting for 9.7% [7][8]. - iShares U.S. Healthcare ETF (IYH) has $3.1 billion in assets, with UNH representing 9.3% [9][10]. - Vanguard Health Care ETF (VHT) has $17 billion in assets, with UnitedHealth at 9% [11][12]. - Fidelity MSCI Health Care Index ETF (FHLC) has $2.6 billion in assets, with UNH occupying 8% [13][14].