Insights Into 13F Filings: ETFs to Invest in Like Billionaires

The most-awaited 13F filings for second-quarter 2025 are here, and investors are keen on investing like billionaires. 

According to Bloomberg’s analysis of 716 hedge funds managing a combined $726.5 billion, technology stocks made up 23% of total holdings, leading all sectors. Financials followed at 17%, while energy saw the smallest increase in allocations. On the other hand, money managers trimmed positions in underperforming sectors such as aerospace & defense and consumer & retail, signaling a broader pivot back toward momentum trades.

With the help of the 13-F filing, we have highlighted some smart stock-selection techniques and identified the most suitable ETFs for each category, allowing investors to bet like billionaires.

Hedge Funds Double Down on Big Tech

Hedge funds aggressively bought technology stocks despite market turbulence, betting on a new wave of growth driven by artificial intelligence. The leading U.S. hedge funds, including Bridgewater Associates, Tiger Global Management, Discovery Capital and Coatue Management, dramatically increased their exposure to Big Tech and AI-related stocks, signaling renewed conviction in the tech-driven rally.

Microsoft (MSFT) and Netflix (NFLX) were among the biggest beneficiaries. Notably, hedge fund holdings of Microsoft grew by $12 billion to $47 billion as of June 30, cementing its status as the single largest holding by market value. Bridgewater Associates boosted its position in MSFT by 905,622 shares, while Walleye Capital added 882,930 shares.
 
Bridgewater doubled its stake in NVIDIA (NVDA) while also boosting positions in Alphabet (GOOGL), Broadcom and Palo Alto Networks — all major players in artificial intelligence. Discovery Capital placed sizable bets on America Movil, Meta Platforms (META) and CoreWeave, an emerging force in AI infrastructure. Meanwhile, Tiger Global increased its exposure to Amazon, NVIDIA, Microsoft and chip-equipment maker Lam Research.

The shift marks a sharp reversal from earlier this year, when top hedge funds pulled back from tech. At that time, tariff-driven volatility, stubborn inflation and fears of an AI bubble had triggered a sell-off in the so-called “Magnificent Seven” stocks. Since then, the tech giants have staged a powerful comeback. The S&P 500 has gained 10% year to date, driven largely by the sector’s rebound. The biggest technology firms now represent nearly one-third of the index’s total market capitalization (read: Big Tech Roars on AI Frenzy: ETFs to Play).

Among the ETFs targeting the big techs, Roundhill Magnificent Seven ETF MAGS and MicroSectors FANG+ ETN FNGS seem to be the most compelling choices. MAGS is the first-ever ETF offering investors equal-weight exposure to the Magnificent 7 stocks, while FNGS offers equal-weight exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies.

UnitedHealth Emerges as Hedge Fund Favorite

The beaten-down UnitedHealth (UNH) emerged as a surprise favorite for heavyweight investors, including Warren Buffett and David Tepper. Warren Buffett’s Berkshire Hathaway disclosed a stake valued at approximately $1.6 billion or around 5 million shares in its second-quarter filings. This investment fueled a rally of 14% in UnitedHealth stock.

Buffett wasn't the only institutional investor placing faith in UnitedHealth’s turnaround. Lone Pine Capital initiated a stake worth over $528 million, while several other fund managers like Davis Selected Advisers, Appaloosa Management, and Two Sigma also showed interest. The move underscores growing conviction in the fact that defensive, high-quality healthcare stocks can provide balance in an increasingly volatile market.

Leverage Shares 2x Long UNH Daily ETF UNHG offers 2x leveraged exposure to UNH price performance. It debuted in the market on Aug. 15 and spiked 28%. For investors seeking exposure without the risk of a single-stock bet, iShares U.S. Healthcare Providers ETF IHF could be an exciting pick. UNH makes up 23% of the assets in the ETF portfolio. Other diversified ultra-popular Health Care Select Sector SPDR Fund XLV and Vanguard Health Care ETF VHT are also some options with modest allocations to UnitedHealth.

Homebuilders Back in Favor

Berkshire initiated a substantial position in D.R. Horton (DHI), valued at nearly $200 million, and significantly increased its stake in Lennar (LEN), worth close to $800 million. D1 Capital also reported new money flowing into D.R. Horton and other housing/leverage-to-housing names.

Warren Buffett’s new positions in DHI and LEN signal a fresh vote of confidence in U.S. homebuilders, suggesting the legendary investor believes the worst may be behind the housing market. The sector has struggled in recent years due to high mortgage rates, which curbed demand for new homes, alongside broader economic uncertainty (read: U.S. New Home Sales Miss Expectations: ETFs in Focus).

As the Fed is gearing up to cut interest rates again, lower borrowing costs would make homeownership more affordable and likely spur renewed demand for new construction. SPDR S&P Homebuilders ETF XHB and iShares U.S. Home Construction ETF ITB are the two popular ETFs in the homebuilder space. Though both ETFs currently have an unfavorable Zacks Rank #4 (Sell), most of the homebuilder shares are at a bargain and worth buying.

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This article originally published on Zacks Investment Research (zacks.com).

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