Despite the uneven performance of recent music industry exchange-traded funds, a new fund that seeks to capitalise on the sector's 12% annual growth rate has just been launched. MUSQ introduced its first ETF, the MUSQ Global Music Industry ETF (MUSQ), which went public on July 7. In afternoon trade on Monday, it fell by less …
Despite the uneven performance of recent music industry exchange-traded funds, a new fund that seeks to capitalise on the sector’s 12% annual growth rate has just been launched. MUSQ introduced its first ETF, the MUSQ Global Music Industry ETF (MUSQ), which went public on July 7. In afternoon trade on Monday, it fell by less than 0.5 percent to $24.83. According to the company, it is promoting a special “pure play” music ETF that aims to introduce investors to the $26.6 billion sector. The MUSQIX, which measures the global music industry, is tracked by the fund.
The new fund was introduced in response to the debut of the KPOP & Korean Entertainment ETF (KPOP) last year, which invested in companies related to the quickly expanding Korean pop music business. The fund has accumulated assets totaling $2.83 million. After its filing and introduction in February, the Clouty Tune ETF, another fund, still hasn’t started trading. The fast-growing music industry has benefited from the post-pandemic return of live concerts, digital innovation from AI, and untapped possibilities for monetizing streaming platforms. According to research from Goldman Sachs cited in MUSCQ’s white paper, the music industry will generate $52.2 billion in income by 2030, expanding at a noteworthy compound annual rate of 12%. David Schulhof, the CEO and founder of MUSQ, told etf.com that he does not view other music-focused ETFs as competitors. “There’s nothing like MUSQ on the market,” he claimed. “Every single one of our companies is a real music company; it’s the first of its kind.” Schulhof invented the MUSQIX index, which is now managed by EQM Indexes. It covers every facet of the music business, including creation, sale, and live performances as well as broadcast radio and even equipment.
The ETF owns 48 companies, including Warner Music Group, Spotify, Live Nation, SiriusXM, and Sonos. Alphabet, Apple, and Amazon are among its largest holdings. The ETF is designed to ensure that companies are weighted with a maximum starting holding of 7%. The fund includes small cap, midcap, and large cap companies because the index’s minimum market cap is $100 million. The liquidity requirement for companies is a minimum of $200,000 of trading volume per day, according to Schulhof. It has an expense ratio of 0.92%. Schulhof said he sees the ETF as tapping into the desire of retail investors who utilize apps like Robinhood and traditionally didn’t have access to the asset class. “For 25 years, it was really hard to get exposure to music as a retail investor,” Schulhof said. “As an investor myself, I took my experience in music and investing in music and designed a product that is going to hit all the right notes for investors.”
Risk Disclaimer :
Please note that this articles does not offer any instructions or suggestions regarding investment decisions. Therefore, it is essential that you carefully evaluate your financial situation and conduct thorough analysis, or seek advice from a qualified professional, before making any investment decisions.
