VistaShares OMAH yields 15% using Berkshire portfolio covered calls
The VistaShares Target 15 Berkshire Select Income ETF has reached a 14.9% yield by selling covered calls on Warren Buffett's top equity holdings, a strategy that outperforms Berkshire shares but relies on options premiums rather than organic dividend growth.
Launched on March 5, 2025, the VistaShares Target 15 Berkshire Select Income ETF (OMAH) has rapidly amassed $958 million in assets by offering a 14.9% trailing yield. Trading at a share price of $19, the fund generates these monthly distributions not through standard dividends, but by systematically writing short-dated call options against a portfolio designed to mimic Berkshire Hathaway's largest public equity positions.
The fund currently manages 102 positions, but its fate is tied closely to a handful of familiar names. As of April 30, roughly 47% of OMAH's net assets were concentrated in seven core Berkshire-aligned stocks: Apple, Berkshire Hathaway Class B, American Express, Coca-Cola, Occidental Petroleum, Bank of America, and Chevron. The portfolio is heavily weighted toward Financials at 33% and Consumer Staples at 17%.
The underlying equity holdings naturally yield far less than the fund's headline rate. Coca-Cola yields 2.5%, Chevron yields 3.8%, and American Express sits around 1%. To bridge this substantial gap, OMAH sells covered calls on holdings like Apple, Alphabet, Berkshire, Coca-Cola, and Amazon, collecting premiums up front and recycling them into the monthly distribution. This creates a striking 305% payout ratio.
Underlying holdings offer fundamental stability
Despite the synthetic nature of the fund's yield, the equity floor supporting those options remains fundamentally durable. Coca-Cola, carrying its Dividend King status, posted $1.76 billion in first-quarter 2026 free cash flow and recently raised its quarterly payout to $0.53. American Express provides a substantial margin of safety, covering its $3.80 annualized dividend roughly four times over with $15.87 in trailing earnings per share.
The financial sector anchors provide further ballast. Bank of America grew its second-quarter net income by 27% and lifted its quarterly dividend to $0.40. Chevron maintained its streak of dividend increases by raising its quarterly payout to $1.78, though investors should note that its first-quarter free cash flow turned negative due to working-capital pressures tied to the Hess transaction.
For market professionals, the key takeaway is the trade-off between absolute yield and capital appreciation. OMAH has delivered a 14% price gain plus roughly 15% in distributions over the past year, vastly outpacing the 3% one-year return of Berkshire's Class B shares. However, the covered-call strategy inherently caps upside participation during major market rallies. Furthermore, a 1% expense ratio significantly erodes the fund's total return edge, presenting a notable cost for a strategy ultimately built on blue-chip holdings.
