Why Consider MUSQ in 2024
Why You May Want to Consider the MUSQ Global Music Industry ETF (NYSE: MUSQ) in 2024.
Improving one’s financial health is probably one of the more important New Year’s resolutions that an individual should make. Investors reviewing their portfolio may want to consider an allocation to the MUSQ Global Music Industry ETF (NYSE:MUSQ). Why should individuals consider MUSQ?
What Is MUSQ?
The MUSQ Global Music Industry ETF may provide individuals with an attractive vehicle to gain exposure to the global music industry.
Why Invest in Music?
The Music Industry Has Evolved
The way individuals consume music has evolved. While physical mediums such as tapes and albums dominated the music industry in the late 20th century, electronic mediums dominate today. Streaming accounted for 84% of global music revenue in the first half of 2023.[1]
Social media, catalog sales, satellite radio, and live music and events also comprise significant portions of the global music industry.
Growth Potential
The global music industry experienced record revenues of $26.2 billion in 2022, a 9% increase from 2021.[2] Global live music has surpassed pre-pandemic levels.
The global music industry is expected to grow at an 11.8% compound annual growth rate (CAGR) over the next five years (2022-2026).[3] Paid streaming revenue is projected to grow at a 10% CAGR through 2030.[4]
Creative Destruction Creates Opportunity
Like many industries, the global music industry has been technologically transformed. Digitalization, artificial intelligence (AI), and social media and streaming platforms have increased the availability of music while providing artists with new ways to connect and engage with their audiences and monetize intellectual property.
This process of creative destruction – one where newer innovation destroys older technologies and structures while simultaneously creating new ones – presents an opportunity for companies and artists that can adapt to new technologies.
The MUSQ ETF Aims to Provide Focused Exposure to the Global Music Industry
The MUSQ Global Music Industry ETF (MUSQ) seeks to provide investment results that, before fees and expenses, correspond to the total return performance of the MUSQ Global Music Industry Index (MUSQIX). The Index is designed to provide exposure to global, publicly-traded companies and royalty funds with a core business interest in the global music industry.
The fund focuses on companies involved in:
- Music Streaming
- Music Content and Distribution
- Live Music Events/Ticketing
- Satellite and Broadcast Radio
- Music Equipment and Technology
Make Beautiful Music in 2024
The global music industry may present individuals with an attractive investment opportunity due to its historical and projected strong growth and the opportunities afforded by its evolution.
MUSQ aims to invest in the most attractive segments of the global music industry.
[1] Olson, Cathy Applefeld, U.S. Recorded Music Revenues Reach All-Time Mid-Year High of $8.4 Billion, Forbes, 9/18/23
[2] Unless otherwise noted, all data sourced from: IFPI, Global Music Report 2023, State of the Industry, 2023
[3] Global Music Market 2022-2026, Research and Markets website, Retrieved 6/1/23
[4] IFPI, Yang, Lisa, et al, Music in the Air, Goldman Sachs Equity Research, June 28,2023
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.