OWNS Profile
The Impact Shares Affordable Housing MBS ETF is an actively managed fund with a focus on investing in mortgage-backed securities (MBS) that are intended to support affordable housing initiatives. Under normal market conditions, the fund allocates at least 80% of its net assets to MBS backed by pools of mortgage loans that are predominantly issued to minority families, low-income households, and families residing in areas with persistent poverty. This targeted investment approach aims to promote social impact by directing capital to communities that have traditionally faced barriers to homeownership.
The fund's investment strategy includes targeting MBS that are secured by loans from non-traditional sources, such as Community Development Financial Institutions (CDFIs) and minority-owned banks. These institutions often serve underrepresented and underserved populations, aligning with the fund's mission to enhance housing accessibility and affordability. By investing in these specific MBS, the fund seeks to generate returns while fostering economic inclusion and supporting community development.
The fund's sub-adviser employs a rigorous selection process to identify MBS that meet the fund's criteria, evaluating the underlying mortgage loans based on their origination sources and borrower demographics. This process is designed to ensure that the investments align with the fund's social impact goals, while also seeking to achieve competitive financial returns. The non-diversified nature of the fund reflects its concentrated focus on affordable housing-related securities, which may lead to higher exposure to specific market segments and associated risks.
Investors in the Impact Shares Affordable Housing MBS ETF should be aware that the fund's emphasis on socially responsible investing may influence its risk and return profile. The concentration in mortgage-backed securities linked to affordable housing and non-traditional loan originators could result in different performance characteristics compared to broader market indices. The fund represents a specialized investment opportunity for those seeking to combine financial returns with positive social impact, particularly in the context of affordable housing and community support.
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