VistaShares Launches High-Yield ETF Based on Berkshire Hathaway
VistaShares manages the Target 15 Berkshire Select Income ETF to provide a 15% target yield using covered-call options on Berkshire Hathaway holdings.
The VistaShares Target 15 Berkshire Select Income ETF (OMAH) provides investors with a 15% target distribution yield by utilizing a covered-call options strategy. The fund models its portfolio after Berkshire Hathaway, generating income through options premiums on major holdings including Apple, American Express, Chevron, and Coca-Cola rather than relying on dividends.
Since its inception in March 2025, the fund has returned approximately 15%. This performance exceeds the 9% gain seen by Berkshire Hathaway over the same period but lags significantly behind the S&P 500, which saw a 34% total return. This gap results from the covered-call strategy, which caps upside potential during bull markets to secure immediate monthly income.
Berkshire Hathaway CEO Greg Abel has reaffirmed the company's stance against paying dividends. Abel stated that the company will maintain this policy as long as retained capital can create more than a dollar of market value for shareholders.
