VistaShares recently surpassed the $1 billion mark in assets under management just over a year after launching its first ETF. CEO Adam Patti attributed the growth to strong demand for income-focused ETFs and differentiated AI exposure. The milestone reveals a tale of two strategies: income-driven flows dominating assets, while AI-led stock selection drives outsized returns.

The firm's flagship income product, VistaShares Target 15 Berkshire Select Income ETF (NYSE:OMAH), accounts for roughly 63% of total AUM ( around $700 million), highlighting strong demand for yield-enhanced equity exposure. Meanwhile, its growth-oriented VistaShares Artificial Intelligence Supercycle ETF (NYSE:AIS) makes up about 22% of assets (around $250 million)—but is emerging as the firm's primary alpha engine.

"Our AUM is concentrated, which is typical for a young issuer building franchise products," Patti told Benzinga in an exclusive interview, noting that OMAH and AIS together account for roughly 85% of total assets.

AI ETF Outperformance Stands Out

AIS delivered around 60% return in 2025, dramatically outperforming both its Morningstar category average (~25%) and the Nasdaq-100 (~21%). The gains were driven by exposure to AI infrastructure names such as SK Hynix, Micron Technology Inc (NASDAQ:MU), Vertiv Holdings Co (NYSE:VRT), and Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM)—areas often underrepresented in traditional benchmarks.

"That outperformance is a direct result of our ‘Bill of Materials' process, which maps the entire AI infrastructure supply chain rather than just chasing mega-cap names," Patti said.

The strategy appears to be holding up even in volatile markets. Year-to-date, AIS is up around 36%, while its electrification counterpart, VistaShares Electrification Supercycle ETF, has gained roughly 40%, reflecting continued investor interest in industrial and infrastructure-linked themes.

Income Strategy Driving Flows

While AI is delivering returns, it's income that's pulling in assets.

Patti revealed that OMAH has achieved its 15% target yield, with an annualized distribution of about 15.5%, paid consistently at 1.25% per month since inception. The yield is generated primarily through an actively managed covered-call overlay, rather than dividends.

"The options premium is the engine—it's what allows us to target 15% on a blue-chip equity portfolio," he said.

The structure has also provided downside cushioning. Since launch, OMAH has returned roughly +6%, compared to a -3.6% decline in Berkshire Hathaway Class B (NYSE:BRK) over the same period, noted Patti, underscoring the appeal of income overlays in choppy markets.

Active Edge Vs Passive ETFs

VistaShares positions itself as an alternative to passive thematic ETFs, which Patti argues often dilute exposure.

"We're seeing meaningful flows from investors disappointed by passive thematic ETFs that drift from their stated theme," he said, pointing to rapid asset growth as evidence of demand.

With expense ratios of 0.75% for thematic ETFs and 0.95% for income strategies, the firm is betting that targeted exposure and options-driven income can justify higher fees—a claim its early performance may be starting to support.

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