The VistaShares Target 15 Berkshire Select Income ETF (OMAH) promises a monthly paycheck to investors, mirroring Berkshire Hathaway’s top equity holdings and generating around 15% annual income. However, this comes with two structural risks that affect every distribution check.
Firstly, the fund’s modest natural dividends are supplemented by option premiums, which may erode over time due to declining volatility. The current yield is just 0.69%, meaning most distributions come from return of capital, rather than actual earnings. This can quietly hollow out the portfolio’s value as NAV shrinks to fund distributions.
Secondly, elevated volatility in the VIX index (27.44) currently provides richer option premiums, but this environment is temporary and may compress when volatility decreases. Additionally, the upside cap from selling calls on Berkshire’s holdings limits potential gains, resulting in a one-year price return of 5.01%, below what direct ownership would have produced.
To monitor OMAH going forward, investors should track the VIX index and watch for trends in NAV versus distribution rate. A fund that pays high distributions but loses NAV over time may be funding its checks with capital erosion rather than earned income.
Investors who own OMAH for income need to keep a close eye on these risks and ensure their investments are aligned with their goals and risk tolerance.
Source: https://247wallst.com/investing/2026/03/29/omah-promises-monthly-income-from-berkshire-holdings-with-one-major-catch