Generated April 2026 from current fund data.
Overview
OMAH and SCHD are both equity ETFs focused on dividend income, but they operate on entirely different premises. OMAH is a newly launched (March 2025) actively managed options strategy that holds only Berkshire Hathaway Class B shares and writes call options against them monthly, targeting a 15% annual distribution. SCHD is a passive index tracker of 100 large-cap U.S. dividend stocks with a 3.39% yield, managed by Schwab since 2011. The core distinction: OMAH chases maximum current yield through leverage and derivatives on a single holding, while SCHD provides diversified dividend exposure with minimal costs.
How they differ
The biggest difference is strategy and structure. OMAH concentrates 100% of its portfolio in BRK.B and systematically sells call options against it to generate the targeted 15% distribution—an active approach using derivatives to manufacture yield. SCHD holds a basket of 100 dividend-paying stocks that meet consistency and fundamental strength criteria, asking nothing more than index-tracking.
Yield and distribution frequency differ sharply too. OMAH's 15.08% distribution is paid monthly; SCHD's 3.39% is paid quarterly. That 11.7 percentage-point gap reflects not just call-writing income but also the mathematical reality that OMAH will likely return some capital to shareholders as distributions, given the underlying stock's lower yield. SCHD's yield is more straightforward—it comes from the dividends of its 100 holdings.
Cost and scale round out the comparison. SCHD's 0.06% expense ratio is roughly 16 times cheaper than OMAH's 0.95%, and SCHD has $84.8 billion in AUM compared to OMAH's $689 million. SCHD has 14 years of operating history; OMAH has been running for less than a year.
Who each is best for
- OMAH: Investors seeking maximum current monthly income, comfortable with single-stock concentration risk and call-writing mechanics, holding in taxable accounts where frequent distributions may trigger short-term capital gains, and willing to tolerate NAV erosion if the underlying stock underperforms.
- SCHD: Long-term dividend investors seeking stable, diversified equity exposure with low drag from fees, tax efficiency in taxable accounts, and peace of mind from passive indexing with proven institutional backing.
Key risks to know
- NAV erosion on OMAH: A 15% distribution on a stock typically yielding 1–2% means OMAH will likely distribute return of capital, gradually eroding NAV over time unless BRK.B appreciates materially or option premiums consistently exceed distributions.
- Single-stock concentration in OMAH: All price risk rides on Berkshire Hathaway. A significant decline in BRK.B leaves holders with both lower principal and fewer premium-generation opportunities.
- Call assignment and tax drag in OMAH: Systematic call writing creates frequent taxable events and caps upside if Berkshire rallies sharply. This structure is most efficient in tax-deferred accounts, which limits its practical use cases.
- Equity market sensitivity in both: Both are 100% equity; neither offers principal stability. SCHD's lower beta (0.66 vs. OMAH's 0.0, which likely reflects the synthetic nature of the options overlay) suggests broader diversification dampens volatility in SCHD.
Bottom line
If you want maximum monthly income and accept single-stock risk and NAV erosion as the cost, OMAH offers a structured option-writing vehicle. If you want steady dividend growth with minimal fees and broad diversification, SCHD is the clearer choice. Past performance—especially OMAH's near-year track record—does not predict future results, and the sustainability of OMAH's 15% target depends heavily on continued option premium availability and BRK.B's price action.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
