This ETF Says It’s going to Make investments Like Warren Buffett With 15% Annual Revenue: What You Ought to Know

The legendary “Oracle of Omaha” could also be stepping away from the helm of Berkshire Hathaway Inc. (BRK.A, BRK.B), however his funding philosophy will proceed to be a drive available in the market, not least via funding merchandise aiming to copy his worth investing method. Whereas Warren Buffett himself has mentioned retail traders ought to rely totally on broad index exchange-traded funds (ETFs), a brand new ETF launched in March 2025 claims to supply traders each Buffett-style fairness publicity and one thing Berkshire has famously by no means supplied—month-to-month earnings.

The VistaShares Goal 15 Berkshire Choose Revenue ETF (OMAH) maintains a basket of Berkshire Hathaway’s most consultant fairness holdings, whereas including an choices technique designed to generate an annual earnings of 15%, distributed month-to-month. For traders who’ve lengthy admired Buffett’s funding acumen however need the dividends that Berkshire would not present, this ETF might have potential. However is it actually investing like Buffett, and does the earnings technique justify the 0.95% expense ratio, particularly with different Buffett-inspired investments accessible?

OMAH and Different Buffett-Impressed ETFs

The VistaShares Goal 15 Berkshire Choose Revenue ETF gives a month-to-month dividend via a twin technique:

1. It invests within the prime 20 fairness holdings of Berkshire Hathaway whereas allocating about 10.6% to Berkshire Hathaway inventory itself.
2. The ETF makes use of an choices technique managed by Tidal Monetary Group to generate a goal earnings of 15% yearly, distributed month-to-month.

Revenue-generating choices methods just like the one utilized in OMAH usually contain promoting lined name choices towards the ETF’s inventory holdings. This method has turn into more and more widespread amongst ETF issuers searching for to offer earnings in periods of market volatility.

There are ironies with this ETF providing. Berkshire Hathaway would not pay dividends. An irony that for some lurches into contradiction is the expense ratio of 0.95%—Buffett famously advises retail traders to hunt out solely low-cost funds.

Why Not Simply Put money into Berkshire Hathaway?

For traders searching for to really “make investments like Buffett,” probably the most easy method can be to purchase Berkshire Hathaway inventory, supplied in less-expensive fractional shares and BRK.B variations. This grants direct publicity to Buffett’s and his chosen executives’ funding selections. Berkshire has tripled the S&P 500 Index‘s efficiency over the previous 12 months and delivered a 203% five-year return, double the broader market (as of Might 2025).

However Berkshire pays no dividends—Buffett’s crew prefers reinvesting money—making a market alternative for OMAH. But it surely’s not the one ETF trying to seize market share by utilizing Buffett’s method:

1. Market Vectors Vast Moat ETF (MOAT): Launched in 2012, this fund follows Buffett’s in on the lookout for firms with sustainable aggressive benefits, or “moats,” that shield them from competitors. $10.8 billion in belongings, 0.46% expense ratio.
2. SPDR Monetary Choose Sector ETF (XLF): XLF gives publicity to the monetary sector that has featured prominently in Berkshire’s portfolio through the years and holds Berkshire Hathaway inventory itself (about 13% of the portfolio). $48.8 billion in belongings, 0.09% expense ratio.
3. iShares Edge MSCI USA High quality Issue ETF (QUAL): This ETF follows high quality metrics like these Buffett values, specializing in firms with low debt, sturdy returns on fairness, and earnings stability. $48.2 billion in belongings, 0.15% expense ratio.

The Backside Line

Because the Oracle of Omaha leaves his perch at Berkshire, many traders might be trying past Berkshire for methods to take a position the Buffett approach. A number of ETFs, together with OMAH, declare to take action, although typically with comparatively excessive expense ratios and earnings funds that appear to run counter to Buffett’s personal funding ideas of simplicity, low prices, and long-term capital appreciation.