💰 Targeting 15% Annual Yield, Paid Monthly

By Stash Team
Last updated: June 9, 2026

OMAH is an income-focused ETF available on Stash that targets a 15% annualized distribution rate, paid monthly. That headline is attention-grabbing. It also needs context.

A target yield is not the same thing as a promised profit. Monthly payouts can be useful, especially for investors who want portfolio income, but the fund’s share price can move up or down. Your total result depends on both the cash paid out and the value of the ETF shares you hold.

View OMAH on Stash

Quick take

• Fund: OMAH, an income-focused exchange-traded fund.

• Goal: Target a 15% annualized distribution rate, paid monthly.

• Strategy: Own stocks tied to Berkshire Hathaway-style large-cap exposure, then use an options strategy designed to generate income.

• Best understood as: A higher-income ETF with tradeoffs, not a shortcut.

• Key risk: The payout can change, the share price can fall, and the 15% target is not promised.

What OMAH is trying to do

OMAH is built for investors who want monthly income from an ETF. The fund combines two ideas:

1. Stock exposure. OMAH is designed to hold large, well-known companies associated with Berkshire Hathaway’s public equity portfolio and related market exposure. Holdings can change over time.

2. Options income. The fund uses an options overlay to seek extra income. In plain English: the fund may collect option premiums in exchange for giving up some potential upside.

That second part matters. Options income is not magic. It can help create cash flow, but it can also limit how much the ETF participates if the underlying stocks climb sharply.

Yield vs. total return: the part investors should not skip

The phrase 15% annual yield sounds simple. The real math is more nuanced.

If you invest $1,000 in an ETF targeting a 15% annualized distribution, the target would work out to about $150 per year, or roughly $12.50 per month, before taxes and assuming the target is met.

But that does not mean your investment earned 15%.

Example:

• You receive $150 in distributions over a year.

• The value of your ETF shares falls by $80.

• Your total result before taxes and fees is closer to $70, not $150.

The opposite can also happen. The share price can rise while distributions are paid. The point is simple: monthly payouts are only one part of the picture. Total return includes price movement too.

What happened to the April 2025 distribution?

OMAH’s April 29, 2025 distribution was $0.23863 per share, which equaled about 1.25% for that month based on the fund’s distribution math at the time.

That was a historical payout. It should not be treated as the current distribution or a promise of future payouts. For the latest distribution, holdings, expense ratio, and prospectus, use the fund issuer’s website.

Visit the fund website

5 stocks behind the strategy

OMAH’s strategy is tied to large companies commonly associated with Berkshire Hathaway’s investment universe. Depending on current holdings and fund positioning, exposure may include names such as:

• Berkshire Hathaway: Warren Buffett’s flagship company.

• Apple: A major technology and consumer products company.

• American Express: A large payments and credit card network.

• Coca-Cola: A global beverage company with a long dividend history.

• Visa: A global payments network.

Important: OMAH is not the same thing as buying Berkshire Hathaway stock. It is an ETF with its own holdings, fees, options strategy, tax treatment, and risks.

How the options strategy can help, and what it can cost

An options-income ETF often sells call options or uses related strategies to collect premiums. Think of it like renting out some of the potential upside of the portfolio.

That can create income. But there is a tradeoff.

If the stocks rise a lot, the ETF may not capture all of that upside. If the stocks fall, the option income may soften the hit, but it may not fully protect the portfolio. Investors still take market risk.

That is why Stash’s view is straightforward: a high-yield ETF should be a tool, not a plan by itself. Build your portfolio with diversification, invest for the long term, and know why each investment belongs in your mix.

Key risks to understand before investing

The 15% target can change

The fund targets a 15% annualized distribution rate, but distributions may vary. They can be higher, lower, or paused depending on market conditions and fund decisions.

Monthly payouts are taxable for many investors

ETF distributions may be taxed as ordinary income, qualified dividends, capital gains, or return of capital, depending on the source of the distribution and your account type. Tax treatment can affect what you keep.

Options can limit upside

Options strategies can generate income, but they often trade away some participation in rising markets.

Concentration can increase risk

A fund tied to a specific set of large companies or a specific investment theme may be less diversified than a broad market ETF.

Fees matter

ETF expense ratios reduce investor results over time. Check OMAH’s current expense ratio in the prospectus before investing.

Stash’s take

Income investing can be powerful. It can also be misunderstood.

We do not think investors should chase the biggest yield on the screen. Big yields usually come with big tradeoffs. A better approach is to understand what the fund owns, how the payout is generated, what could go wrong, and how it fits with the rest of your portfolio.

Stash is built to make that kind of investing less gatekept. You can research investments, start with what you can afford, and build your portfolio with guidance in your pocket.

View OMAH on Stash