Investors looking to hit a high note with their portfolio may soon have a new readymade 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.
“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.
Building Crescendo
Taylor Swift’s recent blockbuster concerts may have been an ode to the resilience of US 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 fund’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 US 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.
Previously published at Wealth of Geeks.
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