Tidal Trust Files First Berkshire Hathaway Leveraged ETF

New fund aims to double daily returns of Warren Buffett’s conglomerate.

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DJ
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Finance Reporter
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Reviewed by: Kent Thune
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Edited by: Kiran Aditham

The first leveraged ETF tracking Berkshire Hathaway’s stock is in registration with U.S. regulators, according to an Oct. 24 Securities and Exchange Commission filing, offering investors a new way to amplify exposure to Warren Buffett’s $978 billion conglomerate.

The Kick BRK 2X Long Daily Target ETF (BRKX) seeks to deliver twice the daily performance of Berkshire Hathaway’s Class B shares through swap agreements and options contracts.

The timing may attract investors, as Berkshire’s B shares have climbed 25% year-to-date to $454, highlighting the appeal of Buffett’s investment approach across insurance, railroads, utilities, and other sectors.

The launch represents a milestone for U.S. investors seeking leveraged exposure to one of the market’s most followed companies. While European investors already have access to similar products through a London-listed 2x Berkshire ETP, this would mark the first such offering in the U.S. market.

Berkshire Hathaway Expanding Investment Options

The ETF will maintain its leveraged exposure by allocating 40% to 60% of assets as collateral for swap agreements and options premiums. For these holdings, BRKX will invest in U.S. Treasury securities, money market funds, short-term bond ETFs and investment-grade corporate debt, according to the prospectus.

The fund plans to list on NYSE Arca, though its management fee remains undisclosed. Beyond traditional swap agreements, BRKX may also employ listed options contracts to generate additional leverage, offering flexibility in achieving its daily investment objective under varying market conditions, the filing states.

Berkshire Hathaway’s diversified business model spans multiple sectors including insurance operations conducted on both primary and reinsurance bases, freight rail transportation, and utility and energy generation business, according to the SEC filing. The company also operates numerous other ventures across manufacturing, services and retail sectors.

The fund will be managed by Tidal Investments’ portfolio managers Qiao Duan and Christopher Mullen, who will oversee the daily rebalancing required to maintain the fund’s leveraged exposure, the prospectus notes. 

A graduate of The University of Texas, Arlington with a BA in Communications, DJ has covered retirement plans, mortgage news, and financial advisor trends. His background includes producing daily content, managing newsletters, and engaging with industry experts. DJ is excited to contribute to ETF coverage and learn more about the $10-trillion-dollar ETF industry. Outside of work, he enjoys exploring New York City's food scene, anime, and video games.