Press Play on New MUSQ GLOBAL MUSIC INDUSTRY ETF
Investors looking to hit a high note with their portfolio may soon have a new ready made MUSQ ETF to tune into.
Investors looking to hit a high note with their portfolio may soon have a new ready-made ETF to tune into.
Those who lack a discerning ear for sound investment opportunities in the music industry need not fret; this new fund is a one-stop shop for industry-wide exposure.
EQM Indexes plans to launch an ETF tied to its MUSQ Global Music Industry Index with the index ticker “MUSQIX.”
The Index is designed to track “All Things Music” with a mix of publicly traded companies and royalty funds at the beating heart of the global music industry. This includes diverse segments, such as streaming, content and distribution, live music events and ticketing, satellite and broadcast radio, and music technology.
The Index offers exposure to 49 music brands, including Universal Music, Warner Music, Live Nation, Spotify, Sony Music, Hybe, and SM Entertainment.[1]
“The MUSQ Global Music Industry Index is the first and official music industry index to capture the performance of the global music industry,” says MUSQ Founder and CEO David Schulhof. “For investors looking for exposure to global music companies across the entire music industry ecosystem, this Index provides a convenient solution,” he adds.
Woman-owned EQM Indexes is an Exchange Traded Products (ETPs) developer whose products aim to track growth industries and emerging investment themes. Its other offerings include ETPs that focus on cannabis, rare earths, and blockchain.
“We are enthusiastic about adding this innovative index to our suite of thematic indexes, providing the opportunity to capture the disruptive growth in the global music industry,” says Jane Edmondson, CEO of the San Diego-based firm.
This is not the first music-focused fund of its kind. There are even funds that track specific genres and geographies of music.
For instance, investors in the mood for some Seoul can buy up the K-pop and Korean Entertainment ETF (“KPOP”), which tracks 30 Korea-based entertainment companies, including giants like HYBE, YG Entertainment, and JYP.[1]
Building Crescendo
Taylor Swift's recent blockbuster concerts may have been an ode to the resilience of U.S. consumer sentiment, with the tour stimulating local economies from coast to coast. Yet the success of the iconic American songstress is just the very visible tip of the music iceberg. The global music industry is currently experiencing robust growth.
Total revenue has grown across the world's top markets and regions. According to IFPI's 2023 Global Music State of the Industry Report, the global music industry recorded revenues of $26.2 billion in 2022, representing an increase of 9% year-on-year growth.
According to the index's white paper, the recording industry clocked gains in every region of the world last year, with some developing regions experiencing double-digit growth. While the U.S. remains the largest market, Japan, the UK, Germany, China, France, South Korea, Canada, Brazil and Australia, respectively, make up the remainder of the world's top ten music markets, according to the fund's white paper.
MUSQ has been licensed by Exchange Traded Concepts with the Securities and Exchange Commission (SEC) as an ETF and is expected to be launched in the near future.
Source: Wealth of Geeks
[1] For a complete list of MUSQ holdings, please click here. Holdings are subject to change.
MUSQ Global Music Industry Index ETF is offered by prospectus. Carefully consider the investment objectives, risks, charges, and expenses. This and other important information can be found in the MUSQ ETF prospectus, which should be read carefully before investing and can be obtained by visiting https://musqetf.com or by calling 1-855- MUSQ-ETF(687-7383).
Risk Disclosures
There is no guarantee the Fund will achieve its stated objectives.
In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles or social, economic or political instability in other nations.
Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.
In addition to the normal risks associated with investing, investments in small- or mid-capitalization companies typically exhibit higher volatility.
The Fund’s concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors.
The Fund is non-diversified.
The Fund is new and has a limited operating history for investors to evaluate. A new and smaller fund may not attract sufficient assets to achieve investment and trading efficiencies.
The Fund may invest in securities denominated in foreign currencies. Because the Fund's NAV is determined in U.S. dollars, the Fund's NAV could decline if currencies of the underlying securities depreciate against the U.S. dollar or if there are delays or limits on repatriation of such currencies. Currency exchange rates can be very volatile and can change quickly and unpredictably.
All investing involves risk, and asset allocation and diversification do not guarantee a profit or protection against a loss. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, might be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks, as well as other risks specific to the particular ETF.
ETF shares are traded on exchanges, and are traded and priced throughout the trading day. ETFs permit an investor to purchase a selling interest in a portfolio of stocks throughout the trading day. Because ETFs trade on an exchange, ETF shares are bought and sold at market price (not NAV). The prices of ETFs may sometimes vary significantly from the NAVs of a ETFs’ underlying securities. Brokerage commissions will reduce returns.
Exchange Traded Concepts, LLC serves as the investment advisor. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.