Impact Shares announces the launch of the Impact Shares Affordable Housing MBS ETF (NYSE: OWNS), an exchange-traded fund (ETF) that invests in agency mortgage-backed securities (MBS) backed by pools of mortgage loans made to minority families, low- and moderate-income (LMI) families, and/or families that live in persistent poverty areas. OWNS seeks to invest in the dignity of homeownership for these traditionally underserved communities.
Sub-advised by Community Capital Management (CCM), a pioneer in fixed income impact investing, OWNS is designed to support the preservation and growth of affordable homeownership by creating financing for LMI borrowers. OWNS offers investors a capital markets solution for bridging the racial wealth gap to help address the affordable housing crisis in the U.S. and looks to make a positive impact on the well-being of individuals, families, and communities. Seed investors in the Fund include Allianz Life Insurance Company of North America, BancorpSouth, Woodforest National Bank, and the California Community Foundation, among other banks, insurers, and foundations. Jane Street Capital will serve as Lead Market Maker to support the launch and ongoing trading of OWNS.
"Homeownership is one of the primary tools for building wealth and its benefits are far-reaching, from enhancing childhood development and school performance to increasing spending and employment in local communities to mental and physical well-being," says David Sand, chief impact strategist at CCM. "Affordable housing for LMI, minority, and Black borrowers has been a primary focus for CCM for over two decades. We're excited to partner with Impact Shares to offer a unique investment opportunity using the flexible, transparent ETF wrapper."
The launch of OWNS coincides with the three-year anniversary of the Impact Shares NAACP Minority Empowerment ETF (NACP). Launched in July 2018 in partnership with the National Association for the Advancement of Colored People (NAACP) as Impact Shares' flagship product, NACP remains the only racial equity product on the market allowing investors to allocate capital to U.S. companies with strong racial and ethnic diversity policies in place. The missions of both funds are closely aligned as Black Americans and other minority groups are disproportionately impacted by the lack of affordable housing.
"Decades of economic inequality and discriminatory homeownership policies have created a prominent racial wealth gap," notes Marvin Owens, chief engagement officer at Impact Shares. "The Black homeownership rate is approximately 45%, the lowest of all ethnic and racial groups in the nation. Providing affordable housing to minority Americans is a crucial step in helping to address the widening racial wealth gap and catalyzing economic growth in LMI communities."
OWNS will invest in MBS issued by Fannie Mae, Freddie Mac, and Ginnie Mae. Over half of the loans in OWNS will be made to LMI borrowers. These include home loans in census tracts where more than 50% of the population is non-white and at least 40% of the population is living at or below the poverty line. One of the largest barriers to wealth creation for minorities and Black Americans is the lack of inherited wealth. Homeownership is critical is this regard. It is also in the nation's best interest - it can bring stability to families, revitalize distressed communities, and have a positive impact to economic growth.
Investors can learn more about OWNS and the Impact Shares mission at https://impactetfs.org/owns-etf.
About Impact Shares
Impact Shares is an ETF issuer and investment manager that is creating a new and innovative platform for clients seeking maximum social impact with market returns. Impact Shares' goal is to build a capital markets bridge between leading nonprofits, investors and corporate America to direct capital and social engagement on societal priorities. Impact Shares is a tax-exempt non-profit organization under Section 501(c)(3) of the Internal Revenue Code. For more information about Impact Shares visit impactetfs.org.
Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed herein are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. Impact Shares disclaims any obligation to update or revise any statements or views expressed herein.
Carefully consider the Funds' investment objectives, risk factors, and expenses before investing. This and additional information can be found in the Impact Shares statutory and summary prospectuses, which may be obtained by calling 855-267-3837, or by visiting ImpactETFs.org. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise. Mortgage-backed securities are subject to prepayment and extension risk and therefore react differently to changes in interest rates than other bonds. Small movements in interest rates may quickly and significantly reduce the value of certain mortgage-backed securities. As an actively managed Fund, OWNS does not seek to replicate a specified index. Narrowly focused investments and investments in smaller companies typically exhibit higher volatility. Investments in commodities are subject to higher volatility than more traditional investments. NACP may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses. The Funds are non-diversified.
There is no guarantee that investors mentioned will continue to hold shares of the Fund. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Impact Shares ETFS are distributed by SEI Investments Distribution Co., with is not affiliated with Impact Shares Corp., the Investment Adviser for the Funds, or Community Capital Management Inc.
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