Invest in the Global Music Industry with MUSQ ETF | David Schulhof on New to the Street

Understanding MUSQ: Investing in the Music Ecosystem

• 💡 MUSQ is a Global Music Industry ETF that offers a convenient way for retail investors to gain exposure to the entire music ecosystem.
• 🎯 It covers streaming, content, live music events, ticketing, equipment, and technology, providing a diversified investment in music companies.

Growth Drivers in the Music Industry

• 📈 The global music industry is projected to double from $100 billion to $200 billion by 2035, with paid streaming subscribers expected to grow from 1 billion to 2 billion.
• 💰 Investors should watch for subscriber growth and potential rate increases from major players like Spotify, which currently charges significantly less than comparable services like Netflix or HBO.
• 🚀 Emerging markets are showing particularly strong growth, with subscriber numbers increasing rapidly.

MUSQ's Top Holdings and Performance

• 🌟 Spotify is MUSQ's top holding at 12%, having seen significant gains of 60% year-to-date and 140% over the past 12 months.
• 🎤 Other top holdings include Live Nation, the world's largest concert promoter, and Tencent Music Group, China's biggest streaming company, both of which have shown strong performance.
• 🎶 Companies like Yamaha and CTS Eventim (Live Nation's German counterpart) are also key components of the fund.

Why Music is an Uncorrelated Asset Class

• 🧩 Music is considered an uncorrelated asset because its performance is not heavily influenced by traditional market factors like tariffs.
• 🌍 Investors are seeking diversification beyond traditional tech stocks, and the music industry, with its strong growth in both the US (10-15%) and emerging markets (25-50%), offers a unique opportunity.
• 🌐 MUSQ provides exposure to a broad range of equities, including many international companies unfamiliar to some investors.

How to Invest in MUSQ

• 💰 Retail investors can easily invest in MUSQ by contacting their broker or using online platforms like E*TRADE, Schwab, or Robinhood.
• 📈 MUSQ is currently trading near its 52-week high, around $29, and is considered a good time to buy before upcoming earnings reports from major music companies.
• ✅ Investing in MUSQ offers a diversified portfolio and access to exciting global companies in the music sector, distinct from commonly held tech stocks.