OMAH Promises Monthly Income From Berkshire Holdings, With One Major Catch

VistaShares Target 15 Berkshire Select Income ETF (NYSEARCA:OMAH) promises something Berkshire Hathaway itself has never offered: a monthly paycheck. By mirroring Berkshire’s top equity holdings and selling covered call options against those positions, the fund targets roughly 15% in annual income. Since its March 4, 2025 launch, it has grown to nearly $690 million in assets, attracting retirees and income investors who want Buffett’s portfolio without the zero-dividend reality of owning Berkshire Hathaway (NYSE:BRK.B) directly.

Two structural risks affect every distribution check the fund sends out, and both are worth understanding before committing capital.

The Yield You Receive May Be Eroding the Value You Hold

OMAH’s 0.95% expense ratio and 15% annual distribution target create a math problem worth understanding. The fund’s holdings — Apple (NASDAQ:AAPL | AAPL Price Prediction) at 11.76%, Berkshire Hathaway Class B at 9.33%, and American Express (NYSE:AXP) at 8.68% — generate modest natural dividends. The fund’s reported dividend yield is just 0.69%, meaning most monthly distributions come from option premiums and, critically, return of capital.

Return of capital (ROC) is not income in the traditional sense. When a fund distributes more cash than it earns, it returns a portion of your own investment to you. The check arrives, but the NAV shrinks to fund it. Over time, this can quietly hollow out the portfolio’s value even as distributions keep arriving. Multiple analysts covering OMAH have flagged this as the central sustainability question around the 15% target.

The current monthly distribution of $0.2396 per share annualizes to roughly $2.88 per share. With the fund trading near $18.11, that implies a yield of approximately 15.9% on current price. Sustaining it requires either strong option premium income or ongoing capital distribution. The fund’s NAV has remained relatively stable since inception, but the track record spans just over a year, and the option premium environment has been unusually favorable due to elevated volatility.

Volatility Giveth, and Volatility Taketh Away

The covered call strategy depends entirely on option premiums, and option premiums depend on implied volatility. The VIX currently sits at 27.44, well above its 12-month average of 19.3 and up 40.4% over the past month. Higher volatility means richer premiums, which helps OMAH generate income.

Elevated volatility is historically temporary. The VIX peaked at 52.33 in April 2025 and then fell steadily to a year-low of 13.47 by December 2025. During low-volatility stretches, premium income from selling calls on Berkshire’s holdings compresses meaningfully. Berkshire’s portfolio is defensively oriented — financials, consumer staples, energy — and these sectors do not generate the implied volatility that tech-heavy funds enjoy. When the broader market calms, OMAH’s income engine runs at reduced capacity.

There is also the upside cap to consider. When OMAH sells a call option against a holding, it collects a premium but surrenders any gains above the strike price. Apple gained 14.65% over the past year and American Express gained 9.65%. OMAH holders received option income instead of that appreciation wherever calls were exercised. The fund’s own one-year price return is 5.01%, well below what direct ownership of its top holdings would have produced in a rising market.

What to Monitor Going Forward

Two indicators matter most for OMAH holders.

1. The VIX: Track it at FRED’s VIXCLS series, updated daily. If the VIX drops sustainably below 15, option premiums across OMAH’s holdings will compress and the fund will face pressure to maintain its distribution target without leaning more heavily on return of capital. Check it monthly, or around major Federal Reserve meetings when volatility tends to shift.
2. NAV trend versus distribution rate: VistaShares publishes monthly distribution announcements and NAV data. If NAV trends consistently lower while distributions hold steady, that gap is being funded by capital erosion rather than earned income. A fund that pays 15% annually but loses 10% of NAV per year is delivering far less than the headline yield suggests.

OMAH is a genuinely novel income product built on a sensible premise. Berkshire’s portfolio is diversified, defensively positioned, and well-understood. The covered call overlay is a legitimate income strategy. But the 15% target requires a sustained volatility environment and disciplined options management to avoid quietly transferring NAV to the distribution line. Investors who own it for income need to watch whether the check is being funded by the portfolio’s earnings or by the portfolio itself.