Loading…
Loading…
The pitch for the VistaShares Target 15 Berkshire Select Income ETF (NYSEARCA:OMAH) is almost too clever to ignore.
VistaShares Target 15 Berkshire Select Income ETF offers a 15% annualized yield via option writing on a value-oriented, Berkshire-centric portfolio. OMAH suits investors prioritizing income stability and capital preservation over maximum total return, especially retirees seeking consistent monthly payouts. The fund's limited tech exposure and capped upside mean likely underperformance versus index-tracking, tech-heavy peers in strong bull markets.
Buffett famously refuses to pay a dividend on Berkshire Hathaway because he can compound your cash better than you can.
The current market environment, marked by volatility and uncertainty, is almost ideal for covered call ETF strategies. However, traditional (most) covered call ETFs are heavily concentrated in S&P 500 and Nasdaq-100 names, which are considered vulnerable to correction. I favor covered call ETFs with low beta and low correlation to high-priced assets, targeting blue-chip value for extra defense and durable yields.
VistaShares Target 15 Berkshire Select Income ETF (NASDAQ:OMAH) targets a specific investor: the retiree who wants Warren Buffett's playbook without Berkshire's $300 billion-plus cash drag and needs monthly income.
Retirees who admire Warren Buffett face a recurring frustration: Berkshire Hathaway (NYSE:BRK-B | BRK-B Price Prediction) pays no dividend, so owning the stock means watching the compounding happen on paper while no cash hits the brokerage account.
The OMAH ETF offers high monthly income by selling calls on Berkshire Hathaway and its top holdings, targeting a 15% annual yield. The fund sacrifices upside potential for consistent income, making it suitable for income-focused investors rather than those seeking capital appreciation. Key risks include OMAH's short track record, potential NAV erosion, concentration risk, and higher fees compared to owning Berkshire directly.
OMAH paid out $0.23225 per share yesterday, the latest in a string of monthly distributions designed to hit a 15% annualized yield.
SEC filings for OMAH aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.