Hitting the Right Notes: Inside the Music Industry Segments of MUSQ
Go behind the scenes of the music industry with a breakdown of the vibrant sectors represented in MUSQ—streaming stars, concert giants, gear gurus, and more.
Music isn’t just about killer riffs and soul-stirring lyrics—it’s a billion-dollar industry that’s constantly evolving. And if you’re looking to invest where the beat never stops, the MUSQ Global Music Industry Index ETF (MUSQ) is your backstage pass to the entire music biz. This ETF may hit all the right notes, giving you exposure to the different segments that make up the modern music landscape.
Let’s break it down:
1. Music Streaming: The Headliner
Gone are the days of cassette tapes and CD towers—streaming is king now. Platforms like Spotify (SPOT) and Tencent Music Entertainment (TME) have turned music into an on-demand experience, letting users play their favorite jams anytime, anywhere.
What it does: These platforms provide vast libraries of songs through subscription models, ad-supported listening, and even exclusive content.
Why it matters: Streaming is where the money is, with millions of users paying for premium access. That’s been historically steady revenue, baby!
Who’s rocking this space?
• Spotify (SPOT): The godfather of music streaming, boasting millions of paid subscribers worldwide.
• Tencent Music Entertainment (TME): A major streamer in China, with apps like QQ Music and Kugou keeping the beats flowing.
2. Music Content & Distribution: The Record Labels
Before music reaches your ears, it needs to be created, recorded, and distributed. That’s where the big players like Universal Music Group (UMG) and Warner Music Group (WMG) come in.
What it does: These companies sign artists, produce music, manage royalties, and ensure every song gets the love it deserves (and the money it earns).
Why it matters: As streaming and digital downloads explode, record labels continue cashing in on licensing, partnerships, and catalog ownership.
Who’s running this stage?
• Universal Music Group (UMG): Home to megastars like Taylor Swift, The Weeknd, and Billie Eilish.
• Warner Music Group (WMG): A titan in the industry, controlling both recorded music and publishing rights.
3. Live Music & Ticketing: The Concert Scene
Nothing beats the rush of a live concert, and companies in this space make sure fans get to experience the magic. Whether it’s stadium tours or local gigs, giants like Live Nation Entertainment (LYV) dominate the ticketing game.
What it does: These companies organize events, manage venues, and handle ticket sales so artists and fans can connect.
Why it matters: Fans spend BIG on concerts—ticket sales, merch, and VIP experiences may make this a lucrative business.
Who’s rocking the live scene?
• Live Nation Entertainment (LYV): The biggest name in concerts and festivals, owning Ticketmaster and promoting thousands of events worldwide.
• CTS Eventim AG: A European leader in ticketing, festivals and live entertainment.
4. Music Equipment & Tech: The Gear-heads
Behind every hit song is some killer equipment—whether it’s a high-end recording studio, an electric guitar, or home sound systems. This segment fuels the creative process.
What it does: Companies in this space design, build, and sell the gear musicians and listeners use, from instruments to high-fidelity audio systems.
Why it matters: As music consumption grows, so does the demand for better sound and better gear.
Who’s dropping the best tech?
• Yamaha: The OG of musical instruments, making everything from pianos to electric guitars.
• Sonos (SONO): High-end audio tech that’s changing the way we listen at home.
Why Investing in MUSQ May Hit the Right Notes
Now that we’ve covered the rockstars of the music industry, let’s talk about why the MUSQ ETF could be an investment to consider:
Built-in Diversification:** This ETF provides exposure to multiple aspects of the music biz, which may potentially spread investment risk across different sub-sectors.
Industry Tuned for Growth: The music industry continues to evolve, from the expansion of streaming to the resurgence of live events. MUSQ offers a potential way to tap into these trends.
Global Playlist: With companies spanning different regions, this ETF provides access to both established and emerging global music markets.
Thematic & Trendy: For those who believe music may keep evolving and expanding, this ETF aligns with the broader entertainment and technology shifts shaping the industry.
Final Encore
If you love music and are interested in exploring investment opportunities in the industry, MUSQ may offer a way to gain exposure to various players in the space. It’s like putting together the ultimate festival lineup—except instead of just listening to the music, you’re following the business behind it.
*For a complete list of MUSQ holdings, please click here. Holdings are subject to change.
**Diversification does not ensure a profit or guarantee against a loss.
So, are you ready to turn up the volume? Why invest in MUSQ >>
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.