Tuesday's ETF Movers: SVOL, IHF
ETF Performance: The iShares U.S. Healthcare Providers ETF is underperforming, down approximately 4.6% in afternoon trading on Tuesday, with significant declines in UnitedHealth Group (down 15.6%) and Agilon Health (down 7.4%).
Market Commentary: The views expressed in the article are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
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Managed Care Stocks Show Mixed Performance in 2025: ALHC and OSCR Gain, While UNH and CNC Decline
Divergent Performance Among Insurers: In 2025, Alignment Healthcare stands out with an 81.4% year-to-date increase, while UnitedHealth Group faces significant challenges, down 35.13% YTD due to high medical costs and operational issues.
Impact of Policy Changes: The expiration of enhanced ACA subsidies on December 31, 2025, raises concerns about potential premium increases and coverage losses, with a Republican healthcare bill advancing that does not renew these subsidies.
Mixed Growth Expectations: CVS Health and Oscar Health show positive growth prospects, with CVS expected to have robust EPS growth through 2028, while Oscar Health continues its turnaround with a 10.1% gain.
Industry Uncertainty: The healthcare sector is experiencing pressure from rising utilization and federal funding cuts, leading to a cautious outlook for major insurers, particularly UnitedHealth, which anticipates a transition year in 2026.
ETFs on the Move This Monday: SILJ and IHF
iShares U.S. Healthcare Providers ETF Performance: The iShares U.S. Healthcare Providers ETF is underperforming, down approximately 1.6% in Monday afternoon trading.
Notable Declines in ETF Components: Key components of the ETF, such as Surgery Partners and Agilon Health, experienced significant declines, with Surgery Partners down about 23.6% and Agilon Health down about 10.1%.
Market Context: The performance of the ETF and its components is part of broader market movements observed on Monday.
Author's Perspective: The views expressed in the article are those of the author and do not necessarily represent the opinions of Nasdaq, Inc.
Trump urges federal funding to circumvent 'BIG, BAD' health insurance companies
Trump's Proposal: President Trump advocates for reallocating federal healthcare funds from insurance companies to the public, allowing individuals to purchase better healthcare services directly.
Critique of Insurance Companies: He describes current insurance companies under the Affordable Care Act as "BIG, BAD" and "money sucking," emphasizing the need to eliminate them from the healthcare system.
Financial Benefits for Individuals: Trump claims that this shift would enable people to save money and obtain superior healthcare policies, stating that they could save "an absolute fortune."
Political Context: Amid a government shutdown and ongoing debates over healthcare subsidies, Trump also calls for an end to the Senate filibuster to facilitate his proposed changes.
Top 5 Sector ETFs with Strongest Performance in August
Stock Market Performance: The S&P 500 and Dow Jones both recorded their fourth consecutive monthly gains in August, with the S&P 500 rising 1.5% and the Dow Jones increasing by 3.2%. The Nasdaq achieved a 1.6% gain, marking its fifth straight monthly rise, while small-cap stocks in the Russell 2000 surged about 7%.
Inflation and Consumer Sentiment: Core inflation was reported at 2.9% in July, raising concerns as it remains above the Fed's 2% target. Consumer sentiment fell to a three-month low in August due to inflation and economic outlook concerns, despite strong expectations for a rate cut by the Fed.
Cryptocurrency and Cannabis Stocks: Ethereum prices surged by 26% in August, driven by institutional demand and staking yields, while cannabis stocks soared following hints from President Trump about potential reclassification of marijuana, with ETFs like Roundhill Cannabis ETF up 83.9%.
Materials and Sector Performance: Various materials ETFs, including those for rare earths and lithium, saw significant gains in August, driven by safe-haven demand and industrial usage. The healthcare sector also performed well, particularly UnitedHealth Group, which boosted related ETFs.
Is It the Right Moment to Invest in UnitedHealth-Focused ETFs?
Berkshire Hathaway Investment: Berkshire Hathaway acquired over 5 million shares of UnitedHealth (UNH) worth $1.57 billion, boosting UNH's stock price by 12% on August 15, 2025, amidst other investments from notable hedge funds.
Earnings and Projections: UnitedHealth's second-quarter earnings fell short of estimates due to high operating costs, with projected revenues for 2025 now between $445.5 billion and $448 billion, while adjusted net EPS is expected to be at least $16, down from previous guidance.
Stock Performance: UNH shares have significantly underperformed, falling 47.5% over the past year, with a current valuation of 10.83X forward P/E, leading to concerns among investors despite recent acquisitions strengthening its market presence.
Investment Recommendations: Analysts suggest investing in UNH-heavy ETFs to mitigate company-specific risks, with various price targets set for UNH shares ranging from $198 to $440, reflecting mixed sentiments about the stock's future performance.
Retail Sales Demonstrate Strength in July: Attention on Sector ETFs
Retail Sales Growth: U.S. retail sales rose by 0.5% in July 2025, following a revised increase of 0.9% in June, with significant gains in motor vehicle and furniture sales.
Online Sales Surge: Nonstore retailers experienced a 0.8% increase in sales from the previous month and an impressive 8.0% year-over-year growth, highlighting the strength of e-commerce.
Sector Highlights: Key sectors such as clothing stores and furniture stores also saw notable sales increases, with clothing sales up 0.7% and furniture sales rising 1.4% sequentially.
Investment Opportunities: Several ETFs and stocks are positioned to benefit from these retail trends, including ProShares Online Retail ETF, SPDR S&P Retail ETF, and companies like Amazon, Home Depot, and CVS Health.
Managed Care Stocks Show Mixed Performance in 2025: ALHC and OSCR Gain, While UNH and CNC Decline
Divergent Performance Among Insurers: In 2025, Alignment Healthcare stands out with an 81.4% year-to-date increase, while UnitedHealth Group faces significant challenges, down 35.13% YTD due to high medical costs and operational issues.
Impact of Policy Changes: The expiration of enhanced ACA subsidies on December 31, 2025, raises concerns about potential premium increases and coverage losses, with a Republican healthcare bill advancing that does not renew these subsidies.
Mixed Growth Expectations: CVS Health and Oscar Health show positive growth prospects, with CVS expected to have robust EPS growth through 2028, while Oscar Health continues its turnaround with a 10.1% gain.
Industry Uncertainty: The healthcare sector is experiencing pressure from rising utilization and federal funding cuts, leading to a cautious outlook for major insurers, particularly UnitedHealth, which anticipates a transition year in 2026.
ETFs on the Move This Monday: SILJ and IHF
iShares U.S. Healthcare Providers ETF Performance: The iShares U.S. Healthcare Providers ETF is underperforming, down approximately 1.6% in Monday afternoon trading.
Notable Declines in ETF Components: Key components of the ETF, such as Surgery Partners and Agilon Health, experienced significant declines, with Surgery Partners down about 23.6% and Agilon Health down about 10.1%.
Market Context: The performance of the ETF and its components is part of broader market movements observed on Monday.
Author's Perspective: The views expressed in the article are those of the author and do not necessarily represent the opinions of Nasdaq, Inc.
Trump urges federal funding to circumvent 'BIG, BAD' health insurance companies
Trump's Proposal: President Trump advocates for reallocating federal healthcare funds from insurance companies to the public, allowing individuals to purchase better healthcare services directly.
Critique of Insurance Companies: He describes current insurance companies under the Affordable Care Act as "BIG, BAD" and "money sucking," emphasizing the need to eliminate them from the healthcare system.
Financial Benefits for Individuals: Trump claims that this shift would enable people to save money and obtain superior healthcare policies, stating that they could save "an absolute fortune."
Political Context: Amid a government shutdown and ongoing debates over healthcare subsidies, Trump also calls for an end to the Senate filibuster to facilitate his proposed changes.
Top 5 Sector ETFs with Strongest Performance in August
Stock Market Performance: The S&P 500 and Dow Jones both recorded their fourth consecutive monthly gains in August, with the S&P 500 rising 1.5% and the Dow Jones increasing by 3.2%. The Nasdaq achieved a 1.6% gain, marking its fifth straight monthly rise, while small-cap stocks in the Russell 2000 surged about 7%.
Inflation and Consumer Sentiment: Core inflation was reported at 2.9% in July, raising concerns as it remains above the Fed's 2% target. Consumer sentiment fell to a three-month low in August due to inflation and economic outlook concerns, despite strong expectations for a rate cut by the Fed.
Cryptocurrency and Cannabis Stocks: Ethereum prices surged by 26% in August, driven by institutional demand and staking yields, while cannabis stocks soared following hints from President Trump about potential reclassification of marijuana, with ETFs like Roundhill Cannabis ETF up 83.9%.
Materials and Sector Performance: Various materials ETFs, including those for rare earths and lithium, saw significant gains in August, driven by safe-haven demand and industrial usage. The healthcare sector also performed well, particularly UnitedHealth Group, which boosted related ETFs.
Is It the Right Moment to Invest in UnitedHealth-Focused ETFs?
Berkshire Hathaway Investment: Berkshire Hathaway acquired over 5 million shares of UnitedHealth (UNH) worth $1.57 billion, boosting UNH's stock price by 12% on August 15, 2025, amidst other investments from notable hedge funds.
Earnings and Projections: UnitedHealth's second-quarter earnings fell short of estimates due to high operating costs, with projected revenues for 2025 now between $445.5 billion and $448 billion, while adjusted net EPS is expected to be at least $16, down from previous guidance.
Stock Performance: UNH shares have significantly underperformed, falling 47.5% over the past year, with a current valuation of 10.83X forward P/E, leading to concerns among investors despite recent acquisitions strengthening its market presence.
Investment Recommendations: Analysts suggest investing in UNH-heavy ETFs to mitigate company-specific risks, with various price targets set for UNH shares ranging from $198 to $440, reflecting mixed sentiments about the stock's future performance.
Retail Sales Demonstrate Strength in July: Attention on Sector ETFs
Retail Sales Growth: U.S. retail sales rose by 0.5% in July 2025, following a revised increase of 0.9% in June, with significant gains in motor vehicle and furniture sales.
Online Sales Surge: Nonstore retailers experienced a 0.8% increase in sales from the previous month and an impressive 8.0% year-over-year growth, highlighting the strength of e-commerce.
Sector Highlights: Key sectors such as clothing stores and furniture stores also saw notable sales increases, with clothing sales up 0.7% and furniture sales rising 1.4% sequentially.
Investment Opportunities: Several ETFs and stocks are positioned to benefit from these retail trends, including ProShares Online Retail ETF, SPDR S&P Retail ETF, and companies like Amazon, Home Depot, and CVS Health.
