New ETFs Let Investors Mirror Buffett, Ackman, Burry's Top Stock Trades

New ETF filings from VistaShares reveal plans to launch funds that track the top trades of Bill Ackman and Michael Burry, expanding on the firm’s existing ETFs tied to Warren Buffett‘s investments.

What Happened: VistaShares may not be a household name for ETFs yet, but that could soon change with ETFs that will allow investors ways to invest alongside three legendary figures.

New filings from the ETF company call for the following future ETFs to be launched:

• VistaShares Pershing Square Select ETF
• VistaShares Target 15 Pershing Square Select Income ETF
• VistaShares Scion Asset Management Select ETF
• VistaShares Target 15 Scion Asset Management Select Income ETF
• VistaShares Duquesne Select ETF
• VistaShares Target 15 Duquesne Select Income ETF
• VistaShares Berkshire Select ETF

The ETFs will copy the investments and portfolios of Bill Ackman (Pershing Square), Michael Burry (Scion), and Stanley Druckenmiller (Duquesne). The new Berkshire Select ETF will add to the company's portfolio, which already includes the VistaShares Target 15 Berkshire Select Income (NYSE:OMAH).

The new ETFs are actively managed and will trade on the New York Stock Exchange. The main select ETFs will seek to replicate the performance of the underlying index. The target 15 funds will provide more of an income component with investments in options and other items to attempt to maintain an annual income target of 15%.   

According to the filing, the VistaShares Pershing Square Select ETF would hold up to 20 stocks that best represent Ackman’s fund’s publicly disclosed holdings.

Read Also: EXCLUSIVE: ‘Invest Like Buffett,’ This ETF CEO Is Riding The Berkshire Hathaway Buzz

Why It's Important: The existing Berkshire fund from VistaShares has attracted over $200 million in assets and is popular with investors, likely leading to the launch of the new ETFs.

One item investors will have to decide before investing in the ETFs is that 13Fs from the likes of Ackman, Burry, Druckenmiller, and Buffett only have to be filed once a quarter, and the holdings may be different than what's reported. The stocks owned may have already increased in value between the time the investment management bought the stock and the time the transaction was disclosed.

Retail investors enjoy copying well-known investors with proven track records, and new products based on these names could offer excitement in the ETF space.

Ackman's most recent 13F filing showed several big changes, including swapping out Nike Inc (NYSE:NKE) stock for options and taking a position in Uber Technologies (NYSE:UBER) of more than 30 million shares. Ackman increased positions in Hertz Global Holdings (NASDAQ:HTZ) and Alphabet Inc Class A (NASDAQ:GOOGL) shares during the first quarter.

At the end of the first quarter, these were the top holdings in the Pershing Square fund:

• Uber: 19%
• Brookfield Corporation: 18%
• Restaurant Brands International (NYSE:QSR): 13%
• Howard Hughes Holdings (NYSE:HHH): 12%
• Chipotle Mexican Grill (NYSE:CMG): 9.1%

The latest 13F filing comes as Ackman is trying to buy control of Howard Hughes and turn it into a diversified holding company to copy the conglomerate style of legendary investor Warren Buffett.

While investors could buy and hold the stocks that Ackman and others disclose they own each quarter, ETFs like this could take some of the legwork out. The inclusion of options, swaps, and other investing methods looks to generate additional income alongside any future gains from the legendary investors.

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Image created using artificial intelligence via Midjourney.