How OMAH Targets 15% Income with a Berkshire-Inspired Options Strategy

The VistaShares Target 15™ Berkshire Select Income ETF (OMAH) was launched seeking to combine the long-term equity appeal of a Berkshire Hathaway-style portfolio with a targeted 15% annual income, paid monthly. That combination is rare—and it raises an important question: how exactly does OMAH attempt to deliver on both goals?

The answer lies in the fund’s options overlay. In this post, we’ll unpack how it works, what investors potentially give up in exchange for monthly income, and why Return of Capital (ROC) doesn’t mean what many think it does.

Covered Call Basics, OMAH Style

As described in a previous post, OMAH holds an equity portfolio designed to mimic the top 20 public holdings of Berkshire Hathaway, along with direct exposure to BRK.B itself. That’s the foundational equity engine. Layered on top of it is the options strategy: the fund sells covered calls—sometimes called spreads—on those positions, collecting option premium as income.

The mechanics are simple, but potentially powerful:

• OMAH sells out-of-the-money calls on its holdings
• If the market stays flat or declines, those calls expire worthless, and the fund keeps the premium and distributes it to shareholders as income
• If the market rises beyond the strike, the fund may need to buy back the short call at a loss—capping upside—but it still pays out the premium

The tradeoff: You don’t get all the upside in strong bull markets—but in return, you get consistent income potential regardless of market direction.

Source: VistaShares.

Why 15%? The Strategy Behind the Target

OMAH’s 15% annual income target, equivalent to about 1.25% per month, is intentionally ambitious. The portfolio management team adjusts strike prices, call selection, and trade timing dynamically to pursue this goal in all market environments.

This isn’t about reaching for yield with high-risk names—it’s about harvesting volatility premium from a portfolio of large, liquid, mostly value-oriented stocks. The fund is designed to work best when markets are sideways, choppy, or rangebound—environments where covered call strategies historically shine.

Not a Hedge—But a Strategic Tilt

It’s important to clarify: OMAH is not a downside hedge. Investors remain exposed to the equity risk of the underlying portfolio—roughly analogous to owning a slice of Berkshire Hathaway.

However, by layering income on top of that equity base, the options strategy can soften the impact of market volatility. It may outperform during down or flat markets and lag in sharp rallies—but even in rising markets, it still distributes income.

This tradeoff may appeal to investors seeking cash flow, not just capital appreciation.

Return of Capital Isn’t a Red Flag

Some investors worry when they see “Return of Capital” or ROC in a fund’s distribution breakdown. It’s easy to assume the fund is just handing back your original investment. But in OMAH’s case—as with many options-income ETFs—that assumption misses the mark.

ROC is often just an accounting classification tied to the timing of realized vs. unrealized gains. The fund may realize option income while not yet realizing capital gains on its equity holdings. The premium income is real—but it can still show up on paper as ROC.

In other words, ROC in this context doesn’t mean the fund is returning your original investment—it reflects how certain option-based distributions are reported for tax purposes. This classification can also have potential tax deferral benefits. (1)

In many cases, ROC can actually be tax-efficient for investors, delaying taxable recognition of gains until a future date.

OMAH vs. Berkshire Stock—and Other Income ETFs

OMAH isn’t simply a proxy for owning Berkshire Hathaway stock. It seeks mimics Berkshire’s portfolio, yes—but it also adds something BRK.B doesn’t: a monthly income stream.

Unlike most income ETFs that focus on dividend payers or junk bonds, OMAH delivers its income through options-based cash flow—without sacrificing blue-chip exposure. Its focused stock portfolio means it won’t behave like broad equity income funds or defensive income strategies. That’s by design.

For investors who want Berkshire-style equity with a dividend feel, OMAH offers something new: a consistent payout layered on top of a time-tested approach to stock selection.

Explore the full details of OMAH:

Visit the OMAH Fund Page
Download the OMAH Fact Sheet

Learn more about VistaShares ETFs at www.VistaShares.com.

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(1)Tax treatment may vary. Investors should consult a tax professional for guidance based on their individual circumstances.

Definitions

The Solactive VistaShares Berkshire Select Index represents the 20 highest valuation equity securities from the portfolio of the Holding Company.
Distribution Rate: The annual rate an investor would receive if the most recent fund distribution remained the same going forward. The Distribution Rate represents a single distribution from the Fund and is not a representation of the Fund’s total return. The Distribution Rate is calculated by multiplying the most recent distribution by 12 in order
to annualize it, and then dividing by the Fund’s NAV.
12-Month Trailing Distribution Rate: Represents the Distribution Rate an investor would have received if they had held the fund over the last twelve months, assuming the most recent Ex-date NAV. To calculate the 12-Month Distribution Rate, the previous 12 distributions are summed (including income, capital gains, and return of capital during the period), and divided by the most recent Ex-date NAV.
30-Day SEC Yield: 30-Day SEC Yield is based on a formula mandated by the Securities and Exchange Commission (SEC) that calculates a fund’s hypothetical annualized income, as a percentage of its assets. A security’s income, for the purposes of this calculation, is based on the current market yield to maturity (in the case of bonds) or projected dividend yield (for stocks) of the fund’s holdings over a trailing 30-day
period. This hypothetical income will differ (at times, significantly) from the fund’s actual experience; as a result, income distributions from the fund may be higher or lower than implied by the SEC yield.

Investors should consider the investment objectives, risks, charges and
expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (844) 875-2288 or visit www.vistashares.com.

Read the prospectus or summary prospectus carefully
before investing. Investing involves risk, including possible loss of principal.

Important Information:
Index / Strategy Risks. The Index’s holdings are derived from publicly available data, which may be delayed relative to the then current portfolio of Berkshire Hathaway. Consequently, the Fund’s holdings, which are based on the Index, may not accurately reflect Berkshire Hathaway’s most recent publicly disclosed investment positions and
may deviate substantially from its actual current portfolio. The equity securities represented in the Index are subject to a range of risks, including, but not limited to, fluctuations in market conditions, increased competition, and evolving regulatory environments, all of which could adversely affect their performance. Focused Portfolio Risk. The Fund will hold a relatively focused portfolio that may contain exposure to the securities of fewer issuers than the portfolios of other ETFs. Holding a relatively concentrated portfolio may increase the risk that the value of the Fund could go down because of the poor performance of one or a few investments. Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes.
Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced, among other things, by the current market price, actual and anticipated changes in the value of the underlying instrument,
including the anticipated volatility, which are affected by fiscal and monetary policies and by national and international political, changes in the actual or implied volatility or the reference asset, the time remaining until the expiration of the option contract and economic events.
Equity Market Risk. Common stocks are generally exposed to greater risk than other types of securities, such as preferred stock and debt obligations, because common stockholders generally have inferior rights to receive payment from specific issuers. The equity securities held in the Fund’s portfolio may experience sudden, unpredictable drops in value or long periods of decline in value. U.S. Government and U.S. Agency Obligations Risk. The Fund may invest in securities issued by the U.S. government or its agencies or instrumentalities. U.S. Government obligations include securities issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities, such as the U.S. Treasury. New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions. Newer Sub-Adviser Risk. VistaShares is a recently formed entity and has limited experience with managing an exchange-traded fund, which may limit the Sub-Adviser’s effectiveness.

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