Quaker Investment Trust CCM Affordable Housing MBS ETF (OWNS)

“A bond that also houses families.”

The Quaker Investment Trust CCM Affordable Housing Mortgage-Backed Securities ETF trades on NASDAQ under the ticker OWNS and holds a portfolio of agency mortgage-backed securities (MBS) backed by multifamily rental properties in the affordable housing segment. Unlike traditional MBS tied to single-family home mortgages, OWNS focuses specifically on loans used to refinance or construct rental apartments serving households with moderate incomes—properties where rents are restricted by deed to remain below market rates. The fund seeks to provide total return, measured against a custom index of qualifying affordable-housing mortgages, while embedding a social objective alongside a financial one.

The affordable housing gap and why it matters to MBS investors

Housing affordability has become a persistent crisis across the United States. Millions of families spend more than 30 percent of income on rent, and the shortage of deed-restricted affordable units vastly exceeds demand. Mortgage lenders and investors have traditionally focused on higher-margin conventional residential debt, leaving a capital gap in the multifamily affordable sector. That gap is partly filled by government-backed agency mortgage programs through Fannie Mae and Freddie Mac, which guarantee the mortgages backing securities like those in OWNS.

The fund’s economic thesis is that affordable-housing loans, backed by agency guarantees, offer a genuine yield pickup versus conventional agency mortgage pools without taking on undue credit risk—because the government guarantee absorbs default losses. A property serving low-income tenants still generates stable cash flows if the mortgagor is creditworthy and the local housing market permits rent collection. OWNS aims to gather capital that might otherwise chase higher-yielding but riskier debt, and channel it toward a capital class that relies on steady, modest spreads and the moral incentive of housing people.

What OWNS holds and how it works

The fund invests in agency-backed mortgage pools where the underlying mortgages are on multifamily properties deed-restricted to serve households earning 80 percent of area median income or below. These are not equity stakes in apartment buildings; they are senior debt securities backed by the mortgages themselves. The agency guarantee—typically from Fannie Mae or Freddie Mac—means that if borrowers default, the government-sponsored enterprise absorbs the loss, and OWNS still receives its principal and interest payments.

This structure delivers higher coupon income than conventional agency mortgage securities, partly because lenders price in the illiquidity and slower prepayment profile of affordable housing mortgages (borrowers have less refinancing incentive when rents are capped). Mortgages on affordable properties also carry lower loan-to-value ratios and more stringent underwriting than conventional loans, since the lenders understand the income constraints of tenants and price accordingly.

The fund holds a diversified mix across property types (new construction, rehabilitation, and refinancing), geographies, and loan ages. Because it tracks a custom index of qualifying affordable-housing MBS rather than a broad agency-MBS benchmark, OWNS is more narrowly focused than a general multifamily or agency fund.

Risks specific to affordable housing MBS

The primary risk is rate risk, shared by all fixed-income instruments. Rising interest rates reduce the value of a bond paying a fixed coupon; falling rates invite faster prepayment and reinvestment risk. OWNS is sensitive to moves in the Treasury curve and Fed policy in the same way conventional MBS are.

Beyond rates, the key risk is illiquidity in the affordable-housing MBS market. The secondary market for these securities is smaller and less active than the broader agency MBS market, meaning spreads can widen sharply in stressed conditions, and the fund itself may face redemption pressure if demand for its shares falls. The 2023 banking crisis demonstrated that even government-guaranteed securities can see sharp mark-to-market losses when bond yields spike unexpectedly.

A subtler risk is policy. The affordable housing programs that enable these mortgages rely on government sponsorship and subsidy through tax credits, low-rate mortgages, and guarantees. Changes to Fannie Mae or Freddie Mac policy, or shifts in Congressional appetite for housing subsidies, could reduce origination volume and dry up the universe of new affordable-housing MBS for the fund to buy.

Finally, affordability covenants themselves carry some uncertainty. A property deed-restricted to serve 60 percent of area median income is still subject to local property taxes, maintenance, and market pressures; prolonged economic weakness in a region can pressure the economics even if rents are protected by deed.

How the fund fits into a portfolio

OWNS is a niche product, not a core bond holding. It works best for investors who specifically want exposure to affordable housing finance, who are willing to accept the fund’s narrower secondary-market liquidity, and who can tolerate the duration risk inherent in a longer-maturity bond fund. The fund’s yield sits between conventional agency MBS and higher-yielding corporate bonds or credit-heavy multifamily securitizations.

Investors treating OWNS primarily as a fixed-income allocation tool need to compare its yield and duration against broader alternatives—a core bond fund, a multifamily REIT, or a conventional agency-MBS ETF. Investors drawn to OWNS for its social mission should also scrutinize its expense ratio and underlying spreads to ensure they are not overpaying for the privilege of supporting affordable housing; low costs matter more in a yield-dependent strategy.

Researching OWNS and the affordable housing market

Start with the fund’s prospectus, which details the index methodology and the criteria for what qualifies as an affordable-housing mortgage. The semi-annual reports break down the portfolio’s composition by property type, region, and loan characteristics. Bond market data providers such as Bloomberg and Morningstar can show the fund’s duration, yield-to-maturity, and performance versus agency-MBS benchmarks.

Broader research should cover the multifamily affordable housing crisis—data from the National Low Income Housing Coalition, HUD, and the Urban Institute frame the scale of the shortage and the capital flows supporting production. News on Fannie Mae and Freddie Mac policy, regulatory changes, and Congressional housing initiatives will signal whether the flow of affordable-housing mortgages is likely to expand or contract. The Federal Reserve’s bond holdings and interest-rate path drive the largest swings in mortgage valuations; track Fed communication and Treasury yield trends to anticipate where OWNS’s price is likely to move.