MUSQ LLC has launched a new exchange traded fund that offers investors pure-play exposure to the global music industry.
The MUSQ Global Music Industry ETF (NYSE Arca: MUSQ) invests in the entire music industry ecosystem. This includes streaming services, content and distribution, live events and ticketing, satellite and broadcast radio. The fund also targets music equipment and technology companies.
The ETF tracks the MUSQ Global Music Industry Index, administered by EQM Indexes. The index follows a methodology based on market capitalization. Components are weighted with a maximum initial weight of 7%, ensuring a balanced portfolio. The index also takes liquidity into account and is rebalanced quarterly.
Holdings in the fund include Universal Music, Warner Music, Live Nation, Spotify, Sony Music, Hybe, and SM Entertainment.
See more: “New ETF to TUNE Into Music & Media Sectors”
A Revived and Growing Industry
The global music industry is experiencing a revival, fueled by digitization, AI, social media, and streaming platforms. New monetization methods, rising paid streaming penetration, and the resurgence of live music events post-pandemic also drive attractive growth potential.
MUSQ LLC Founder and CEO David Schulhof said in a news release that the ETF “capitalizes on the global affinity for music.”
“By opening doors to a diversified portfolio of companies critical to the music industry, we are facilitating investors’ access to the industry’s ongoing growth and innovation,” Schulhof added.
Goldman Sachs predicts the industry’s revenue will reach $53.2 billion by 2030, growing at a compound annual rate of 12%.
Investors are increasingly seeing the music industry as a growing investment opportunity. The listing of MUSQ comes hot off the heels of Clouty launching its own ETF targeting the music and entertainment sectors. The Clouty Tune ETF (TUNE) invests in global companies in the music, media, and entertainment industries.
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