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

The legendary “Oracle of Omaha” may be stepping away from the helm of Berkshire Hathaway Inc. (BRK.A, BRK.B), but his investment philosophy will continue to be a force in the market, not least through investment products aiming to replicate his value investing approach. While Warren Buffett himself has said retail investors should rely mostly on broad index exchange-traded funds (ETFs), a new ETF launched in March 2025 claims to offer investors both Buffett-style equity exposure and something Berkshire has famously never provided—monthly income.

The VistaShares Target 15 Berkshire Select Income ETF (OMAH) maintains a basket of Berkshire Hathaway’s most representative equity holdings, while adding an options strategy designed to generate an annual income of 15%, distributed monthly. For investors who have long admired Buffett’s investment acumen but want the dividends that Berkshire doesn’t provide, this ETF could have potential. But is it really investing like Buffett, and does the income strategy justify the 0.95% expense ratio, especially with other Buffett-inspired investments available?

OMAH and Other Buffett-Inspired ETFs

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

1. It invests in the top 20 equity holdings of Berkshire Hathaway while allocating about 10.6% to Berkshire Hathaway stock itself.
2. The ETF uses an options strategy managed by Tidal Financial Group to generate a target income of 15% annually, distributed monthly.

Income-generating options strategies like the one used in OMAH typically involve selling covered call options against the ETF’s stock holdings. This approach has become increasingly popular among ETF issuers seeking to provide income during periods of market volatility.

There are ironies with this ETF offering. Berkshire Hathaway doesn’t pay dividends. An irony that for some lurches into contradiction is the expense ratio of 0.95%—Buffett famously advises retail investors to seek out only low-cost funds.

Why Not Just Invest in Berkshire Hathaway?

For investors seeking to truly “invest like Buffett,” the most straightforward approach would be to buy Berkshire Hathaway stock, offered in less-expensive fractional shares and BRK.B versions. This grants direct exposure to Buffett’s and his chosen executives’ investment decisions. Berkshire has tripled the S&P 500 Index‘s performance over the past year and delivered a 203% five-year return, double the broader market (as of May 2025).

But Berkshire pays no dividends—Buffett’s team prefers reinvesting cash—creating a market opportunity for OMAH. But it’s not the only ETF looking to capture market share by using Buffett’s approach:

1. Market Vectors Wide Moat ETF (MOAT): Launched in 2012, this fund follows Buffett’s in looking for companies with sustainable competitive advantages, or “moats,” that protect them from competition. $10.8 billion in assets, 0.46% expense ratio.
2. SPDR Financial Select Sector ETF (XLF): XLF provides exposure to the financial sector that has featured prominently in Berkshire’s portfolio over the years and holds Berkshire Hathaway stock itself (about 13% of the portfolio). $48.8 billion in assets, 0.09% expense ratio.
3. iShares Edge MSCI USA Quality Factor ETF (QUAL): This ETF follows quality metrics like those Buffett values, focusing on companies with low debt, strong returns on equity, and earnings stability. $48.2 billion in assets, 0.15% expense ratio.

The Bottom Line

As the Oracle of Omaha leaves his perch at Berkshire, many investors will be looking beyond Berkshire for ways to invest the Buffett way. Several ETFs, including OMAH, claim to do so, though often with comparatively high expense ratios and income payments that seem to run counter to Buffett’s own investment principles of simplicity, low costs, and long-term capital appreciation.