VistaShares’ OMAH fund achieves 15% annualized returns using covered calls on Berkshire-style stocks amid Berkshire’s underperformance.
The VistaShares Target 15 Berkshire Select Income ETF (NASDAQ:OMAH) has generated 15% annualized returns by holding $805 million in Berkshire-style blue-chip stocks and selling covered calls. The fund targets income-focused retirees seeking Buffett’s strategy without Berkshire’s $300 billion cash drag.
OMAH’s 5% year-to-date gain outperformed Berkshire’s 5% decline but lagged the SCHD ETF by 15 percentage points, as covered calls limited upside during the blue-chip rally. The fund distributes income monthly, aiming for a 15.3% trailing yield with shares trading near $19.
The strategy focuses on durable franchise equities favored by Buffett, including insurance, utilities, and consumer staples, while using options to enhance income. The fund’s performance highlights its appeal amid Berkshire’s struggles this year.