Most investors know Berkshire Hathaway as Warren Buffett’s legendary holding company. Fewer realize they can access a concentrated slice of its portfolio strategy through an ETF that writes covered calls on those same holdings. That’s the premise behind VistaShares Target 15 Berkshire Select Income ETF (NYSEARCA:OMAH), an income-focused fund that delivers distributions through a Berkshire-inspired stock basket with an options overlay.
Built for Income, Not Growth
OMAH’s portfolio mirrors Berkshire’s quality-focused approach through concentrated positions in mega-cap leaders. Apple anchors the strategy, reflecting the fund’s conviction in proven technology franchises. The portfolio tilts heavily toward Financials, capturing the fund’s emphasis on banking and payment giants that generate consistent cash flows. This concentration creates meaningful risk but also alignment with Buffett’s quality-over-diversification philosophy.
The return engine combines underlying stock appreciation with options premium income. OMAH writes out-of-the-money covered calls on core holdings, collecting premium that boosts yield beyond what dividends alone provide. The fund targets monthly distributions through this options premium strategy.
Performance Reality Check
Covered call strategies inherently trade upside participation for premium income. When quality holdings rally strongly, the call-writing overlay caps gains in exchange for collecting option premiums. This tradeoff becomes most visible during bull markets, where traditional equity exposure would capture fuller appreciation.
The fund’s $681.5 million in assets and 0.95% expense ratio position it as a moderately priced actively managed ETF, sitting between passive equity ETFs and more expensive active alternatives.
The Tradeoffs You Accept
Three constraints define OMAH’s risk profile. First, concentration risk is real: a small number of holdings represent a significant portion of the portfolio. Second, the covered call strategy caps upside during strong rallies. When quality stocks surge, you’ll capture some gains but miss the full move. Third, monthly income varies with option premium levels, which fluctuate based on market volatility and the fund’s rolling strategy.
OMAH works best for investors seeking steady income from quality holdings who can accept muted upside during bull markets. It’s not a total return maximizer or a diversified core holding. For retirees prioritizing income over growth, or investors wanting Berkshire-style quality with enhanced yield, it fills a specific role. Just understand you’re trading participation in rallies for premium income and accepting meaningful concentration in a handful of mega-cap names.
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