VistaShares has launched the Target 15 Berkshire Select Income ETF ( OMAH), a new fund built around Buffett's favorites. The ETF holds the 20 largest publicly disclosed Berkshire investments, including Apple ( NASDAQ:AAPL), American Express ( NYSE:AXP), Kroger ( NYSE:KR), VeriSign ( NASDAQ:VRSN), Bank of America (BAC), Citigroup ( NYSE:C), Visa ( NYSE:V), and Coca-Cola ( NYSE:KO), and adds a 15% targeted annual income using a call-writing strategy.
Berkshire Hathaway represents 10.6% of the fund's portfolio, with Apple and financial names among the heaviest weights. The ETF offers monthly payouts of 1.25%, an effort to meet demand from income-focused investors, according to VistaShares CEO Adam Patti in an interview with CNBC's "ETF Edge."
Buffett's strategy of trimming big tech holdings while sitting on record cash piles has drawn heightened attention, especially ahead of Berkshire's shareholder meeting in Omaha next weekend. Over the past five years, Berkshire's stock has delivered a 185% return, more than doubling the S&P 500's performance.
The fund aims to attract investors seeking Buffett's stock-picking acumen paired with regular income, in a market climate now favoring quality over momentum plays.
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