VistaShares’ OMAH delivers a 14.9% yield through covered calls on Berkshire-style holdings, but its 305% payout ratio sparks scrutiny.
The VistaShares Target 15 Berkshire Select Income ETF (OMAH) offers a 14.9% trailing yield, funded by covered calls on Berkshire Hathaway-style equities rather than traditional dividends. The ETF, trading at $19, manages $958 million across 102 positions, with a 305% payout ratio raising concerns about long-term sustainability.
Launched on March 5, 2025, OMAH mirrors Warren Buffett’s largest public holdings, including Coca-Cola (KO) and American Express (AXP). While KO’s Dividend King status and AXP’s earnings coverage provide stability, the ETF’s 1% expense ratio and call-writing strategy may erode returns over time. Its 14% price gain plus distributions outpaced Berkshire B shares’ 3% one-year return.
Investors are weighing whether OMAH’s yield reflects genuine cash flow or a fragile structure, as the strategy’s reliance on options overlays introduces additional risk.