MUSQ Global Music Industry Index ETF

An Exchange-Traded Fund (ETF) combines features of both stocks and mutual funds through a unique two-market structure. In the primary market, an ETF issuer like Exchange Traded Concepts (MUSQ's advisor) works with authorized participants - typically large financial institutions - to create or redeem large blocks of ETF shares. This process helps ensure that the ETF's market price stays close to the value of its underlying holdings.

In the secondary market, individual investors buy and sell ETF shares through a stock exchange, just like trading regular stocks. When you purchase MUSQ shares through your broker, you participate in this secondary market, where buyers and sellers trade existing ETF shares throughout the trading day. This differs from mutual funds, which only price and trade once daily after the market closes.

Source: JP Morgan Asset Management

The interaction between these two markets - primary and secondary - creates several benefits for investors. First, it provides the flexibility to buy or sell shares whenever the market is open. Second, it helps maintain efficient pricing, as authorized participants can create or redeem shares to keep the ETF's price aligned with its underlying value. Finally, this structure typically results in greater tax efficiency and lower operating costs compared to traditional mutual funds, as the creation/redemption process in the primary market can be managed to minimize taxable events.

Why Use an ETF to Invest in the Music Industry?

The music industry is diverse, global, and rapidly evolving, spanning multiple business segments—streaming services, content creation, ticketing, live events, music publishing, and technology. Investing in individual music-related stocks can be challenging, as many companies are private, operate in different industry verticals, or are subsidiaries of larger corporations. MUSQ solves this problem by providing diversified exposure to the full music ecosystem in a single investment.

Among the reasons why an ETF like MUSQ is an attractive way to invest in the music industry include:

• Broad Industry Exposure – MUSQ invests across multiple categories, including streaming platforms, live events, publishing, and technology, ensuring diversified participation in the industry’s growth.

• Access to Market Leaders – Companies like Spotify, Universal Music Group, Live Nation, and Tencent Music are included in the fund, offering exposure to dominant players driving the music industry forward.

• Capturing Secular Growth Trends – Streaming penetration is expected to reach 19% by 2030, and live music is projected to grow at a 6.5% CAGR from 2024-2030, providing long-term tailwinds for the sector.

• Eliminating Stock Selection Risk – Instead of picking individual stocks and hoping they perform well, MUSQ allows investors to own a diversified basket of music-related companies that are benefiting from industry-wide trends.

• Liquidity & Transparency – ETFs trade throughout the day, providing liquidity, pricing efficiency, and full transparency into the fund’s holdings—an advantage over mutual funds or private investments in the industry.

As the first and only ETF focused exclusively on the global music industry, MUSQ offers a convenient, diversified, and efficient way for investors to gain exposure to a $100 billion+ market poised for continued growth.

David Schulhof brings a unique combination of music industry expertise and investment acumen to his role as founder and CEO of MUSQ. With 25 years of experience spanning music publishing, digital media, and corporate leadership, Schulhof has consistently worked at the intersection of music and investment opportunities.

He has previously served in the following Company roles:

• President, Music Publishing at LiveOne (LVO), a public global digital media company for live stream and on-demand audio, video and podcast content

• President, Music at AGC Film Studios

• President, Music at IM Global Film Studios

• Co-Founder/CEO Evergreen Copyright Acquisitions which pursued a global acquisition strategy of music publishing acquisitions and sold to KKR / BMG Rights Management.

He has served as a Sponsor and Board Member in two successful SPAC transactions

• Board Member MI Acquisitions which acquired Priority Technology Holdings (PRTH)

• Board Member Andina Acquisition Corp III which acquired Stryve Foods (SNAX).

Before developing the MUSQ Global Music Industry Index ETF, Schulhof established himself as a leader in music publishing and rights management. As co-founder and CEO of Evergreen Copyrights, he built one of the world's largest independent music companies through strategic acquisitions of music publishing catalogs. The company's success led to its acquisition by BMG Rights Management. Schulhof then served as President of Music Publishing at LiveOne, where he worked with digital streaming and on-demand content, and held presidential roles at both AGC Studios and IM Global Studios.

This blend of operational experience and investment strategy shapes MUSQ's approach to the music industry. Schulhof's background in both traditional publishing and digital media provides him with insight into how the industry is evolving, from streaming platforms to live events and emerging technologies. His legal background - including a J.D. from NYU School of Law and membership in the New York State Bar - adds another dimension to his understanding of the complex music rights landscape.

The development of MUSQ represents a natural progression of Schulhof's career, combining his industry knowledge with his vision of making music industry investment accessible to a broader range of investors. As the fund's founder, he continues to apply his experience in identifying opportunities across the global music ecosystem.

The global music industry is experiencing a period of sustained growth and transformation. In 2022, the industry generated $26.2 billion in revenue, reflecting a 9% year-over-year increase. Industry analysts project continued expansion, with forecasts indicating a $50.5 billion increase between 2022 and 2026, representing a compound annual growth rate (CAGR) of 11.8%. Beyond this period, growth is expected to moderate to a 7.3% CAGR through 2030 as the industry matures and monetization strategies evolve.

Streaming services have fundamentally reshaped how music is consumed, driving revenue growth across the industry. In 2022, streaming accounted for 67% of total music revenue, up from 65.5% the prior year. Leading platforms such as Spotify, Apple Music, and Tencent Music continue to expand their subscriber bases, with paid streaming revenue projected to grow at a 10% CAGR through 2030. This expansion is expected to be driven by both increasing subscriber penetration and anticipated price increases of 2-3% per year. Global paid streaming penetration is expected to rise to 19% by 2030, signaling significant untapped potential in emerging markets.

Source: Company Documents

Live music has rebounded strongly following the disruptions of the pandemic and is expected to experience accelerated growth in the coming years. Historically, live music revenues grew at a 4% CAGR between 2007 and 2019, but the industry has seen a dramatic resurgence post-COVID, with 25% year-over-year growth in 2023. Looking ahead, live music revenues are projected to grow at a 6.5% CAGR from 2024 to 2030, driven by strong secular tailwinds, increased ticket demand, and continued monetization opportunities in touring and events.

Source: Company Documents

The recorded music segment continues to grow at a steady pace. Industry forecasts suggest annual growth of 8.5-8.8% in 2024 and 2025, with a long-term CAGR of 8.1% through 2030. This segment’s expansion is primarily driven by streaming revenues, which have largely replaced physical and digital download sales. By 2030, recorded music streaming is expected to generate over $50 billion in annual revenue.

Source: Company Documents

Music publishing plays a critical role in the industry, ensuring that songwriters and rights holders receive royalties from their work. This sector benefits from multiple revenue streams, including performance rights, synchronization licenses, and streaming royalties. As streaming services increase their prices, royalty payments to artists are also expected to grow. New applications of music in health, fitness, and social media are further supporting the expansion of this segment, which is projected to grow at a 6% CAGR through 2030, reaching $11.7 billion.

Taken together, these factors indicate a strong and evolving music industry. A 2023 J.P. Morgan report described music as “the best content story in the history of media,” highlighting expectations for a decade of double-digit growth. This expansion is being fueled by increasing global subscriber penetration, steady price increases, and improved monetization strategies across both developed and emerging markets.

According to Goldman Sachs, total music industry revenue is projected to more than double to $131 billion by 2030, with recorded music expected to reach $80 billion, live music projected at $38 billion, and music publishing growing to $12.5 billion. The global music industry is undergoing a transformation driven by two powerful forces: the continued expansion of music streaming services and the post-pandemic resurgence of live music experiences. These two segments serve as twin growth engines, reinforcing one another as the industry evolves. Streaming provides the foundation for recorded music monetization, while live music generates new revenue opportunities through concerts, festivals, and fan engagement. Together, these trends are expected to fuel sustained long-term growth, making them central pillars of the MUSQ Global Music Industry Index ETF.

Source: Company Documents

Streaming has become the dominant force in the music industry, reshaping how consumers access and interact with music. In 2022, streaming accounted for 67% of global music revenues, up from 65.5% in 2021. The transition from physical and digital downloads to streaming services has accelerated over the past decade, with paid subscription models driving the majority of revenue growth. However, despite its rapid expansion, streaming still has significant room to grow, particularly in emerging markets.

According to Goldman Sachs, global paid streaming penetration is expected to increase to 19% by 2030, up from approximately 9% today. This growth is expected to be fueled by increasing subscriber adoption, particularly in developing regions, rising consumer willingness to pay for premium services, and expected price increases of 2-3% per year, contributing to higher revenue per user. These factors are projected to double the number of paid streaming subscribers to 1.2 billion by 2030, representing a 10% compound annual growth rate. This shift positions streaming not just as a mature business model, but as a long-term growth driver for the entire music ecosystem.

While streaming has provided consistent growth, live music has emerged as one of the most dynamic and high-growth areas of the industry following the COVID-19 pandemic. After a period of disruption in 2020-2021, the sector experienced an 85% year-over-year revenue increase in 2022, surpassing pre-pandemic levels. Historically, live music revenues grew at a 4% compound annual growth rate between 2007 and 2019, but the industry’s recovery has been even more pronounced, with 25% year-over-year growth in 2023. This strong momentum is expected to continue, with projected revenue growth at a 6.5% compound annual growth rate from 2024 to 2030.

Several factors are driving the resurgence of live music. The rise of “superfans” has fueled higher ticket demand, with consumers increasingly willing to spend on premium concert experiences, VIP packages, and exclusive content. Dynamic ticket pricing has allowed artists and venues to maximize revenue per event, while the growth of global touring and music festivals, particularly in emerging markets, has contributed to the expansion of the live entertainment sector. Live Nation, the largest live events company, has seen record-breaking attendance and ticket sales post-pandemic, reinforcing the strength of live music’s rebound. As live performances remain an irreplaceable part of the fan experience, this sector is expected to be a key growth driver for the industry well into the next decade.

Streaming and live music are often seen as separate revenue streams, but in reality, they are highly complementary. Artists and labels leverage streaming platforms to expand their global reach, which in turn boosts concert ticket sales. Data shows that fans who engage with artists through streaming platforms are more likely to attend live performances, purchase merchandise, and subscribe to premium content. This relationship strengthens both segments, creating a reinforcing cycle of engagement and monetization.

For investors, this dynamic presents a compelling opportunity. Streaming provides predictable, recurring revenue from subscriptions, while live music capitalizes on fan engagement, delivering high-margin, experience-driven revenue. The synergy between the two makes them essential for long-term industry growth. The MUSQ ETF provides investors with exposure to both of these high-growth segments, offering a diversified way to participate in the evolution of the global music industry.

The music industry has fundamentally shifted how intellectual property is valued, with music royalties and catalog rights emerging as a recognized asset class. Traditionally, music rights were viewed as secondary revenue streams, dependent on album sales, licensing agreements, and radio play. However, in recent years, institutional investors, private equity firms, and major financial institutions have begun treating music catalogs as high-value assets, driven by the predictability of royalty income and the long-term monetization potential of recorded music. As digital consumption continues to expand, the ability to generate revenue from streaming, licensing, and synchronization deals has increased the appeal of music IP investments.

Music royalties have become particularly attractive due to their stability and recurring nature. Unlike many traditional asset classes, royalties provide cash flow that is relatively uncorrelated with economic cycles, making them appealing to investors seeking alternative sources of yield. The rise of streaming services has further enhanced the value of these assets by ensuring consistent and growing revenue streams. As platforms such as Spotify, Apple Music, and Tencent Music continue to expand, the underlying royalties generated from streaming playbacks contribute to a more predictable and scalable revenue model for rights holders.

The increasing demand for music IP has fueled a surge in catalog acquisitions, with investors paying record sums for the rights to songs and recordings. High-profile deals, such as Bob Dylan’s reported $300 million catalog sale and Bruce Springsteen’s estimated $500 million deal, have underscored the financial strength of music publishing and recorded rights. Institutional buyers, including funds backed by Blackstone, Apollo Global Management, and Hipgnosis Songs Fund, have entered the market, acquiring music catalogs as long-term income-generating assets. This trend reflects a broader shift in investor perception, where music IP is now viewed similarly to real estate or infrastructure—an asset class that generates steady, inflation-protected cash flows.

The expansion of music into social media, gaming, fitness apps, and the metaverse has further diversified revenue streams for rights holders, making music IP an even more compelling investment. As music consumption continues to grow and licensing models evolve, the value of song catalogs and publishing rights is expected to rise, all of which reinforces the long-term viability of music royalties as a mainstream asset class.

The MUSQ Global Music Industry Index ETF is designed to provide diversified exposure to the entire music ecosystem by investing in companies that generate significant revenue from music-related activities. The index is structured around five key investment categories, each representing a critical segment of the industry’s value chain. By allocating across these categories, MUSQ captures the growth potential of multiple revenue streams, ensuring broad participation in the long-term expansion of the music industry.

The first category, Streaming Platforms, includes the world’s leading digital music services, which have become the dominant method of music consumption. Companies such as Spotify, Apple Music, Tencent Music, and Deezer are central to the industry’s revenue model, with streaming now accounting for the majority of recorded music revenue. The shift toward paid subscriptions, the growth of ad-supported models, and the increasing adoption of music streaming in emerging markets make this category a key driver of industry growth.

Music Content & Distribution encompasses record labels, music publishing companies, and rights management firms that develop, market, and monetize recorded music and compositions. Universal Music Group, Warner Music Group, and Believe Digital are among the largest players in this space, benefiting from catalog acquisitions, licensing agreements, and the expanding global demand for music. This category also includes music-focused entertainment companies that manage artist rights and ensure the efficient monetization of intellectual property across multiple platforms.

Live Music & Ticketing represents companies involved in concert promotion, touring, and ticket sales, which have seen significant recovery and growth following the COVID-19 pandemic. Live Nation Entertainment, CTS Eventim, and Madison Square Garden Entertainment are among the key firms driving this segment. These companies capitalize on the rising demand for live events, the increasing willingness of consumers to pay for premium concert experiences, and innovations in ticketing technology that enhance revenue generation for artists and promoters.

Satellite & Broadcast Radio includes platforms that provide music programming through terrestrial, satellite, and digital broadcasting. While streaming has become the dominant method of consumption, satellite and radio networks remain relevant, particularly in advertising-supported models. Companies such as SiriusXM and iHeartMedia continue to generate substantial revenue from music programming, artist partnerships, and branded content initiatives.

Music Equipment & Technology covers businesses that manufacture instruments, audio equipment, and software used in music production, distribution, and performance. Firms such as Yamaha, Sonos, and Roland contribute to the industry by supplying professional-grade recording and performance equipment. This category also includes technology firms that develop music-related software, artificial intelligence-driven recommendation engines, and production tools that enable artists and labels to create and distribute content more efficiently.

Music Categories & Category Leaders

• Streaming Platform

  • Spotify

  • Apple

  • Amazon

  • Tencent Music

  • Kakao Melon

  • YouTube

• Content Distribution

  • Universal Music Group

  • Warner Music Group

  • Sony

  • Hipgnosis

  • Believe

  • HYBE

• Live Music Ticketing

  • Live Nation

  • Madison Square Garden

  • CTS Eventim

  • Amuse

  • Cube Entertainment

• Satellite Radio

  • Sirius XM

  • iHeart

  • Cumulus Media

• Equipment Technology

  • Sonos

  • Yamaha

  • Roland

By investing across these five categories, MUSQ provides a comprehensive way to gain exposure to the music industry’s growth drivers, from digital streaming and content monetization to live performances and emerging music technologies. This diversified approach ensures that investors benefit from both established revenue streams and evolving trends that are shaping the future of music.

The MUSQ Global Music Industry Index ETF is built to provide investors with broad exposure to the companies shaping the future of music across streaming, content creation, live events, and technology. As of December 31, 2024, the ETF’s portfolio includes leading firms spanning North America, Europe, and Asia, reflecting the global nature of the modern music industry.

The ETF’s holdings include some of the most influential companies in streaming, a sector that has transformed how music is consumed and monetized. Among its largest positions are Spotify, the world’s leading standalone streaming service, and Tencent Music Entertainment, a dominant force in China’s digital music market. Major technology giants with substantial music operations, such as Alphabet, Amazon, and Apple, are also included, reflecting their role in digital music distribution and subscription services.

Source: Company Documents

Content and distribution companies make up another significant portion of the ETF, led by Universal Music Group, Warner Music Group, and Sony Group, which together control a substantial share of the global recorded music and publishing market. Asian entertainment companies are also well represented, including Hybe, SM Entertainment, and JYP Entertainment from Korea, as well as Japan’s Avex Inc. and Taiwan’s HIM International Music. These firms play a crucial role in developing and monetizing music content, particularly in fast-growing markets where streaming and fan engagement continues to expand.

Live music and ticketing companies are a major component of the portfolio, reflecting the strong post-pandemic rebound in concerts and events. Live Nation Entertainment, the global leader in concert promotion, is included alongside Madison Square Garden Entertainment and Germany’s CTS Eventim. Sphere Entertainment, the company behind the state-of-the-art immersive venue in Las Vegas, is another key holding, demonstrating the fund’s exposure to new innovations in live music experiences.

The ETF also invests in companies driving advancements in music equipment and technology. Yamaha, Roland, Sonos, and Dolby Laboratories are among the firms that provide the tools and hardware for music creation, production, and high-fidelity playback. These companies play a crucial role in supporting professional and consumer-level music engagement.

By including a mix of large global players and specialized firms operating across multiple industry categories, the MUSQ ETF provides investors a diversified way to gain exposure to the expanding music industry. The fund’s geographic reach spans the United States, Europe, Japan, China, Korea, and Taiwan, positioning it to capture growth from mature and emerging music markets.

Source: Company Documents

MUSQ Global Music Industry Index ETF (NYSE: MUSQ) offers a straightforward way for investors to gain exposure to the rapidly growing global music industry. As an exchange-traded fund, MUSQ is designed to track the performance of the MUSQ Global Music Industry Index, which includes publicly traded companies generating significant revenue from streaming, content and distribution, live music, publishing, and music technology.

Investing in MUSQ is as simple as purchasing shares of a publicly traded stock. The ETF is listed on the New York Stock Exchange (NYSE) Arca under the ticker symbol MUSQ, and shares can be bought and sold throughout the trading day using any brokerage account. Unlike mutual funds, which are priced once daily after the market closes, MUSQ trades in real-time at market prices, allowing for greater flexibility and liquidity.

MUSQ is available through major online brokerage platforms, including Charles Schwab, Fidelity, TD Ameritrade, E*TRADE, and Interactive Brokers. Investors can purchase shares through these platforms by entering the ticker MUSQ and selecting their desired quantity. As with any investment, investors should review the ETF’s expense ratio, holdings, and risk factors before making a decision.

For those interested in the index methodology behind MUSQ, VettaFi serves as the index administrator and calculation agent, ensuring the integrity of the MUSQ Global Music Industry Index. This means that the index is independently calculated and maintained to reflect the evolving landscape of the music industry, providing investors with a transparent and rules-based approach to sector exposure.

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