This ETF Says It'll Invest Like Warren Buffett With 15% Annual Income: What You Should Know

The legendary "Oracle of Omaha" whitethorn beryllium stepping distant from the helm of Berkshire Hathaway Inc. (BRK.A, BRK.B), but his concern doctrine volition proceed to beryllium a unit successful the market, not slightest done concern products aiming to replicate his worth investing approach. While Warren Buffett himself has said retail investors should trust mostly connected wide scale exchange-traded funds (ETFs), a caller ETF launched successful March 2025 claims to connection investors some Buffett-style equity exposure and thing Berkshire has famously ne'er provided—monthly income.

The VistaShares Target 15 Berkshire Select Income ETF (OMAH) maintains a handbasket of Berkshire Hathaway's astir typical equity holdings, portion adding an options strategy designed to make an yearly income of 15%, distributed monthly. For investors who person agelong admired Buffett's concern acumen but privation the dividends that Berkshire doesn't provide, this ETF could person potential. But is it truly investing similar Buffett, and does the income strategy warrant the 0.95% disbursal ratio, particularly with different Buffett-inspired investments available?

OMAH and Other Buffett-Inspired ETFs

The VistaShares Target 15 Berkshire Select Income ETF provides a monthly dividend done a dual strategy:

1. It invests successful the apical 20 equity holdings of Berkshire Hathaway portion allocating astir 10.6% to Berkshire Hathaway stock itself.
2. The ETF uses an options strategy managed by Tidal Financial Group to make a people income of 15% annually, distributed monthly.

Income-generating options strategies similar the 1 utilized successful OMAH typically impact selling covered call options against the ETF's banal holdings. This attack has go progressively fashionable among ETF issuers seeking to supply income during periods of marketplace volatility.

There are ironies with this ETF offering. Berkshire Hathaway doesn't wage dividends. An irony that for immoderate lurches into contradiction is the disbursal ratio of 0.95%—Buffett famously advises retail investors to question retired lone low-cost funds.

Why Not Just Invest successful Berkshire Hathaway?

For investors seeking to genuinely "invest similar Buffett," the astir straightforward attack would beryllium to bargain Berkshire Hathaway stock, offered successful less-expensive fractional shares and BRK.B versions. This grants nonstop vulnerability to Buffett's and his chosen executives' concern decisions. Berkshire has tripled the S&P 500 Index's show implicit the past twelvemonth and delivered a 203% five-year return, treble the broader marketplace (as of May 2025).

But Berkshire pays nary dividends—Buffett's squad prefers reinvesting cash—creating a marketplace accidental for OMAH. But it's not the lone ETF looking to seizure marketplace stock by utilizing Buffett's approach:

1. Market Vectors Wide Moat ETF (MOAT): Launched successful 2012, this money follows Buffett's successful looking for companies with sustainable competitory advantages, oregon "moats," that support them from competition. $10.8 cardinal successful assets, 0.46% disbursal ratio.
2. SPDR Financial Select Sector ETF (XLF): XLF provides vulnerability to the fiscal assemblage that has featured prominently successful Berkshire's portfolio implicit the years and holds Berkshire Hathaway banal itself (about 13% of the portfolio). $48.8 cardinal successful assets, 0.09% expense ratio.
3. iShares Edge MSCI USA Quality Factor ETF (QUAL): This ETF follows prime metrics similar those Buffett values, focusing connected companies with debased debt, beardown returns connected equity, and net stability. $48.2 cardinal successful assets, 0.15% disbursal ratio.

The Bottom Line

As the Oracle of Omaha leaves his perch astatine Berkshire, galore investors volition beryllium looking beyond Berkshire for ways to put the Buffett way. Several ETFs, including OMAH, assertion to bash so, though often with comparatively precocious disbursal ratios and income payments that look to tally antagonistic to Buffett's ain investment principles of simplicity, debased costs, and semipermanent superior appreciation.