Mark Cuban Wants Investors Out of Health Insurers. That’s Tough If You Own These ETFs
Key takeaways
- ETF investors may have skin in the game when it comes to health insurers, despite Mark Cuban's call to divest.
- VTI holds 3,531 stocks as of June 30
- VTI allocates 9.1% of its portfolio to healthcare
- UNH, CVS, and HUM are part of the SPY fund
What happened
Mark Cuban urged investors to divest from major health insurers, citing their prioritization of share prices over patient health and rising healthcare costs.
Why it matters
Cuban's proposal poses a dilemma for passive investors in broad-market ETFs, which are designed to track indexes rather than selectively exclude companies.
Short-term and longer-term
Short-term. ETF investors may have skin in the game when it comes to health insurers, despite Mark Cuban's call to divest.
Longer-term. Mark Cuban's proposal highlights the challenge of avoiding specific companies within a broad-market ETF.