OMAH ETF's 15% Yield Relies on Covered Calls, Not Dividends
The VistaShares OMAH fund has gathered nearly $1 billion by offering a 15% yield on Berkshire Hathaway's top holdings, but investors should note the income comes primarily from selling options rather than underlying dividends.
Launched on March 5, the VistaShares Target 15 Berkshire Select Income ETF has quickly amassed roughly $958 million in assets. The fund trades at $19 and offers a trailing 14.9% yield paid monthly. It achieves this by holding the core public equity portfolio of Warren Buffett and layering a covered-call strategy on top.
The mechanics of that yield require close scrutiny. A 305% payout ratio reveals that the distributions are not funded by the dividends of the underlying stocks. Instead, OMAH sells short-dated call options against positions like Apple, Alphabet, Amazon, Berkshire Hathaway, and Coca-Cola, using the collected premiums to bridge the gap between the roughly 2% average yield of the blue-chip holdings and the 15% target.
For market professionals, this structure represents a classic trade-off: capping upside participation in exchange for immediate income. Over the past year, the strategy has worked. OMAH has delivered a 14% price gain plus roughly 15% in distributions, crushing the 3% return of Berkshire Hathaway's Class B shares. However, the fund charges a 1% expense ratio, which erodes a meaningful portion of those gross returns.
Despite the synthetic nature of the income, the equity floor remains fundamentally sound. The portfolio is heavily concentrated, with seven Buffett-aligned names making up 47% of net assets across 102 total positions. Financials account for 33% of the fund, while consumer staples make up 17%.
The balance sheets of the anchor holdings justify the core investment. Coca-Cola, a Dividend King, generated $1.76 billion in free cash flow in the first quarter of 2026 and raised its quarterly dividend to $0.53. American Express covers its $3.80 annualized dividend roughly four times over with $15.87 in trailing earnings per share. Bank of America grew its second-quarter net income by 27% and lifted its quarterly payout to $0.40. Chevron also raised its dividend to $1.78, though its first-quarter free cash flow turned negative due to working-capital drag from its Hess integration.
Income investors buying OMAH are essentially underwriting a covered-call strategy backed by high-quality financials and staples. The underlying businesses are generating ample cash, but the 15% yield is a product of options premiums, not corporate payouts.
