OMAH's 305% payout ratio reveals a 15% yield funded by option premiums, not dividends. The Berkshire-style equity floor is durable, but volatility risk and a 1% expense ratio cut into returns.
The VistaShares Target 15 Berkshire Select Income ETF (OMAH) markets a 14.9% trailing yield paid monthly against a $19 share price. That number is real. What funds it is the question.
OMAH holds the same public companies that anchor Berkshire Hathaway's portfolio, then layers a covered-call overlay on top. Launched March 5, 2025, the fund manages roughly $958 million across 102 positions. As of the April 30 snapshot, the seven Buffett-aligned names include Apple, Berkshire's own B shares, American Express (AXP), Coca-Cola (KO), Occidental Petroleum, Bank of America, and Chevron (CVX). Those holdings made up roughly 47% of net assets, with Financials at 33% and Consumer Staples at 17%.
The underlying dividend yields on those names average well below the headline number. Coca-Cola yields 2.5%. Chevron yields 3.8%. American Express yields roughly 1%. The gap between those cash dividends and OMAH's 15% target is bridged by selling short-dated call options against the portfolio. The April filing shows short call positions against Apple, Alphabet, Berkshire, Coca-Cola, and Amazon, with premiums collected up front and recycled into the monthly distribution.
Coca-Cola posted Q1 2026 free cash flow of $1.76 billion, raised the quarterly payout to $0.53, and carries a Dividend King track record. American Express earns $15.87 in trailing EPS against a $3.80 annualized dividend, leaving payout coverage of roughly 4x. Bank of America grew Q2 net income 27% and just lifted its quarterly dividend to $0.40. Chevron continued its streak of increases, moving the quarterly payout to $1.78, though Q1 free cash flow turned negative on Hess-related working-capital drag.
The one exception is Occidental Petroleum, which cut its dividend 87% in 2020 and pays $0.26 quarterly, still far below the $0.79 pre-COVID level. That risk is small at OMAH's 6% weighting in the name.
The fund's 305% payout ratio reflects a distribution funded largely by option premium and, at times, return of capital rather than accounting earnings. Premium generation depends on volatility. The VIX sits at roughly 19, in the normal 15 to 20 band, and has averaged about 18 over the past year. That environment supports the current call-writing income. A sustained drop below 15 would compress premiums. A sharp rally would cap upside on the underlying stocks that OMAH has written calls against.
The share price is up 14% over one year and 9% year to date. Layered on top of the roughly 15% distribution, total return has run ahead of Berkshire's own B shares, which are up 3% over one year. The forward annualized distribution estimate of $2.77 is slightly below the trailing $2.83, hinting that management is calibrating payouts to option income rather than forcing a fixed number.
This portfolio's distribution is a synthetic yield, safe as long as volatility stays in a normal band and the Berkshire-style equity book holds its value. The 1% expense ratio is high for a passive-looking product. Investors focused on capital growth over income have historically been better served by owning Berkshire Hathaway directly. JEPI and SPYI offer similar options-income mechanics on broader indexes with longer track records. OMAH's Alpha Score of 52/100 on a Mixed label reflects the structural tension between its income promise and its equity base.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.