Can ETF issuers mimic Buffett's investing magic?

Can ETF issuers mimic Buffett's investing magic?
As Berkshire Hathaway remains a top-performing financial stock, ETFs that offer a similar value style could appeal to investors, according to CFRA.
MAY 07, 2025

As Berkshire Hathaway prepares for a leadership transition, a new crop of exchange-traded funds is emerging to emulate the investment blueprint of its longtime chief executive, Warren Buffett.

Even in his mid-90s, the Oracle of Omaha – known for his value-focused investing style, philanthropic focus, and no-nonsense style of dispensing financial wisdom – hasn't failed to capture the attention of investors across Main Street and Wall Street.

But with Buffett’s weekend announcement that he will step down as CEO at the end of 2025 – while remaining with the company and retaining his stake – the investing world is seeing both reflection and recalibration.

Berkshire's first-quarter earnings revealed a 14 percent drop in operating income and a $5 billion net investment loss. Still, with nearly $350 billion in cash reserves, Buffett is set to leave his successor Greg Abel in charge of a very healthy portfolio.

Against this backdrop, a new research note from CFRA breaks down how smaller ETF issuers are rolling out funds designed to mimic Berkshire’s structure and approach.

“Berkshire Hathaway… has been one of the best-performing financial stocks in the S&P 500 in 2025,” said Aniket Ullal, head of ETF research at CFRA. The stock is among the top five in its sector and ranks in the top decile of the broader index for total returns year-to-date.

At the same time, Ullal noted that Berkshire’s actual investment style diverges sharply from typical value ETFs.

“BRK.B is known for its value-investing style, yet its public stock portfolio is weighted very differently from the largest value and low volatility ETFs,” he wrote. That difference largely comes down to its high allocation to financial and technology stocks, including a 22 percent weighting in Apple – which Buffett had actually cut back on from last year.

One new entrant in this space is the VistaShares Target 15 Berkshire Select Income ETF, trading with the ticker symbol OMAH, which launched in March and has already surpassed $100 million in assets. The fund blends exposure to BRK.B and several of its top public holdings with an options-writing overlay aimed at generating premium income. “It aims to achieve an annual income target of 15 percent,” Ullal noted.

Other ETF products have opted for more aggressive or thematic strategies. In December, Direxion introduced a pair of ETFs that offer leveraged and inverse exposure to BRK.B. Meanwhile, firms like VanEck and First Trust have launched ETFs that replicate Buffett’s focus on companies with economic moats – firms with strong competitive advantages such as brand strength, economies of scale, or high switching costs.

Still, the sector allocations of these funds vary significantly from Berkshire's. For instance, “as of May 2, 2025, MVAL had a 28 percent weight in healthcare, a sector in which Berkshire is substantially underweight,” Ullal wrote, referring to VanEck's Wide Moat Value ETF.

The timing of these ETF launches coincides with the market’s search for perceived stability. Financial advisors recently told InvestmentNews that Berkshire represents a "safe haven,” suggesting continued demand for products aligned with its philosophy.

Despite its recent earnings dip and changes at the top, Berkshire's unique blend of wholly owned subsidiaries and public equity holdings may continue to offer something different from the average value fund.

“Given that BRK.B is differentiated from the large traditional value ETFs, investors may start to consider ETFs like OMAH to get exposure to the Berkshire investment approach, while also generating income,” Ullal concluded.

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