New ETF Targeting 15% Yield Outperforms Berkshire by Replicating Buffett's Holdings
The VistaShares Target 15 Berkshire Select Income ETF (OMAH) mirrors Berkshire Hathaway's largest publicly traded stock positions while using options overlays to generate a 15% annual distribution, charging a 0.95% expense ratio. Since March 2025, OMAH has delivered 13.74% cumulative returns compared to roughly 1% for Berkshire Class B shares, though a significant portion of recent distributions consists of return-of-capital. The fund pursues income through strategies Berkshire itself avoids, such as dividend distributions and options trading, raising questions about long-term sustainability.
The VistaShares Target 15 Berkshire Select Income ETF represents a fundamental reimagining of Berkshire Hathaway's investment approach. Rather than replicating the entire conglomerate—which includes insurance operations, wholly owned businesses, and substantial cash reserves—OMAH isolates only Berkshire's publicly traded stock selections and layers options strategies atop them to generate distributions. This structural difference means investors receive exposure to Buffett's equity-picking decisions without the diversification benefits of Berkshire's broader operational portfolio.
The fund's recent performance metrics reveal potential sustainability concerns beneath attractive headline numbers. While OMAH achieved 13.74% cumulative returns since March 2025 compared to Berkshire's 1%, a meaningful portion of distributions consisted of return-of-capital rather than earned income. This accounting distinction defers taxes temporarily but raises questions about whether the strategy can maintain its 15% distribution target long-term, particularly given the expense ratio and the inherent trade-offs of options selling strategies.
This ETF could appeal to income-focused investors seeking alternative ways to access Buffett-style stock selection, potentially redirecting assets from traditional dividend stocks. However, it may create unrealistic return expectations if investors conflate past performance with sustainable yields. Advisors and individual investors might be affected by the distinction between distributions and actual capital appreciation, requiring careful evaluation of whether the strategy's mechanics align with their long-term financial goals rather than short-term payout appeals.