Invest like Warren Buffett with These Two ETFs

VanEck Morningstar Wide Moat ETF

MOAT

-0.85%

After meeting his late business partner Charlie Munger, Warren Buffett evolved from Benjamin Graham’s classic value investing approach—which focused on buying deeply undervalued, struggling businesses, or “cigar butts” with just one last puff of value left—to a strategy centered on owning high-quality franchises for the long term.

Beyond the usual financial screens for free cash flow yield and return on equity, Buffett has always placed heavy emphasis on qualitative assessments, particularly the idea of a “wide moat.” At a 1995 Berkshire Hathaway shareholder meeting, Buffett described it this way:

“What we’re trying to find is a business that, for one reason or another—it can be because it’s the low-cost producer in some area, it can be because it has a natural franchise because of surface capabilities, it could be because of its position in the consumer’s mind, it can be because of a technological advantage, or any kind of reason at all, that it has this moat around it."

Put simply, if a company can fend off competition for decades, it has a stronger chance of consistently growing earnings, capturing market share, preserving margins, and returning capital to shareholders over the long run.

Today, I consider the authoritative guide to wide moat investing to be Morningstar, which classifies competitive advantages into five key principles:

1. Cost Advantage – Companies with superior pricing power and efficiency. Example: Costco, which leverages membership-driven bulk pricing to undercut competitors.
2. Intangible Assets – Strong brands, patents, or regulatory protections that limit competition. Example: Nike, whose brand loyalty keeps it dominant despite rising competitors.
3. Network Effect – Businesses that become more valuable as more users join. Example: Mastercard, which benefits from a self-reinforcing global payments network.
4. Switching Costs – Products or services that are difficult or costly for customers to abandon. Example: Microsoft, as businesses heavily rely on its ecosystem of enterprise software.
5. Efficient Scale – Markets naturally limited to a few dominant players. Example: Canadian National Railway, where high infrastructure costs deter new entrants.

For investors looking to capture this strategy, the VanEck Morningstar Wide Moat ETF

MOAT tracks the Morningstar Wide Moat Focus Index, holding a portfolio of 50 stocks that Morningstar analysts determine to have a “Wide” Economic Moat Rating while also trading at fair value estimates.

With a 0.40% expense ratio, MOAT has slightly outperformed the S&P 500 over the last 10 years, proving that Buffett-style investing can be both effective and accessible.

VistaShares Target 15 Berkshire Select Income ETF

OMAH

+0.06%

A unique quirk of Berkshire Hathaway (BRK.B) is that it doesn’t pay a dividend, despite having massive cash reserves and free cash flow that would allow it to do so.

This decision is largely about tax efficiency—Buffett prefers to retain earnings and use them for stock buybacks or acquisitions, both of which are less taxable for investors compared to direct dividend payouts.

Berkshire did pay a dividend once—back in 1967—a move Buffett later joked must have been decided while he was “in the bathroom.”

For those who want income from BRK.B, one approach is to sell covered calls, but a simpler option is to buy the newly launched VistaShares Target 15 Berkshire Select Income ETF

OMAH is designed to emulate the composition of Berkshire’s 20 largest public equity holdings. Its top holding is Berkshire Hathaway itself, but it also includes longstanding Buffett favorites like Apple, American Express, Bank of America, Kroger, and Coca-Cola.

What makes OMAH particularly suited for income investors is its options overlay strategy, which aims to generate a 15% annual yield with monthly distributions.

Given the high yield and taxable nature of options income, I would prioritize holding this ETF in a tax-advantaged account like a Roth IRA.

This article is for informational purposes only and does not in any way constitute investment advice. The author may express their own opinions, which may not represent the opinions of ETF Central or its affiliated partners. It is essential that you seek advice from a registered financial professional prior to making any investment decisions.