MUSQ ETF: Investing in the Global Music Industry's Growth

The MUSQ Music Industry ETF

• 💡 MUSQ is the first pure-play music ETF, offering global investors comprehensive exposure to the music industry.
• 🎯 The fund provides access to companies across streaming, live events, ticketing, publishing, equipment, K-Pop, and copyright ownership.
• 🚀 Founded by David Schulhof, a 30-year veteran of music investing, MUSQ aims to capture the explosive growth of music worldwide.

Market Opportunity in Music

• 📈 The global music industry is valued at $103 billion today and projected to reach $200 billion by 2030.
• 💰 Music is considered under-monetized, with current consumer spending on music as a percentage of entertainment budgets significantly lower than in the past.
• 🌐 Streaming services are experiencing substantial growth, particularly in emerging markets due to rising smartphone penetration.

ETF Holdings and Methodology

• 🎶 MUSQ invests in companies where at least 50% of revenue comes from music (pure-play) and 20% for diversified companies.
• 🌍 The ETF includes a mix of U.S. and international equities, with emerging markets capped at 20% per region.
• 📊 Holdings are rebalanced quarterly, with a market cap floor of $100 million and a maximum position size of 12%.
• 🎧 The fund encompasses various segments including streaming platforms (Spotify), live events (Live Nation), record labels (Universal Music Group), and equipment manufacturers (Yamaha).

Performance and Investment Thesis

• 🌟 MUSQ has outperformed the S&P and Nasdaq-100 this year, driven by rising streaming prices, subscriber growth, and concert demand.
• 🔑 Schulhof emphasizes music as an indispensable asset class, akin to food and water, due to its consistent growth and uncorrelated nature.
• 💰 The ETF offers a convenient way to invest in the entire global music ecosystem, from major labels to emerging market opportunities.