{"id":161594,"date":"2023-06-28T08:00:00","date_gmt":"2023-06-28T00:00:00","guid":{"rendered":"https:\/\/www.mediaintel.asia\/?p=920531"},"modified":"2023-06-28T08:00:00","modified_gmt":"2023-06-28T00:00:00","slug":"meet-musq-the-latest-music-fund-to-tap-into-etf-craze","status":"publish","type":"post","link":"https:\/\/www.chinalegalblog.com\/en\/2023\/06\/28\/meet-musq-the-latest-music-fund-to-tap-into-etf-craze\/","title":{"rendered":"Meet MUSQ, the Latest Music Fund to Tap Into ETF Craze"},"content":{"rendered":"
\"MediaIntel.Asia\"<\/a><\/div>\n

A third music-focused electronic-traded fund \u2014 or ETF \u2014 is set to debut on the New York Stock Exchange on Friday (June 30). The aptly named MUSQ Global Music Industry ETF, trading under the ticker MUSQ, has 48 stocks representative of the modern music business, including Universal Music Group, Spotify and Live Nation.
\nTo MUSQ\u2019s founder, David Schulhof, the fast-growing ETF market is primed for an index that allows investors to easily buy into the global music business\u2019s growth story. \u201cIt\u2019s been hard to invest in music for the last 25 years,\u201d he says. \u201cYou had to be a [limited partner] at KKR or Blackstone or Apollo. And it was really hard to get liquidity.\u201d
\nSchulhof, most recently the president of music publishing at LiveOne, invested in music assets as the co-founder and CEO of Evergreen Copyrights, which was acquired by BMG Rights Management in 2010, but everyday investors weren\u2019t able to participate in music\u2019s growing popularity as an asset class. \u201cThere were a lot of other private equity-backed companies, but it was hard for investors to get exposure\u201d to music, he says.
\nWith MUSQ, Schulhof says he\u2019s giving \u201cthe Robinhood investor\u201d a liquid investment to participate in the music business. MUSQ has 48 companies spanning the music content and distribution (including Warner Music Group, Believe), digital music (Spotify, Tencent Music Entertainment), live music and ticketing (Live Nation, Madison Square Garden, Vivid Seats), satellite and broadcast radio (iHeartMedia, SiriusXM, Townsquare Media) and music equipment and technology (Dolby, Sonos). U.S.-based stocks account for 45% of the index\u2019s value; the remaining 55% coming primarily from South Korea, Japan and China.
\nMUSQ avoids video streaming and other digital entertainment stocks that may rise and fall with music but aren\u2019t dedicated to music. Still, not all of the fund\u2019s companies generate most or all of their value from music. MUSQ\u2019s three largest companies are Apple, Amazon and Alphabet. The next-largest company by weight, Sony Group Corp., owns film, gaming and electronics divisions in addition to Sony Music Entertainment. According to the index\u2019s criteria, a company can be considered for inclusion if it derives at least 50% of its annual revenues from the global music business, is a top five company, or have at least 10% of the global market share in one of the five segments of the music business the index covers.
\n\u201cI had to include them,\u201d says Schulhof, \u201cand I couldn\u2019t ignore them. But I created, I think, a fair, balanced approach, which was to cap their market share on the index at 7%.\u201d
\nTo be eligible for the index, a company must have a minimum market capitalization or assets under management $100 million and a minimum average daily trading volume of $200,000 over the previous six months. Some small companies, such as music streamers Deezer and Anghami, and the newly public Alliance Entertainment, didn\u2019t make the cut. But many other small, unheralded companies are among the index\u2019s 48 stocks, including Stingray, a Canadian streaming company that services cable television networks, and Cliq Digital, a German provider of streaming services that bundle music, movies, audiobooks and other content.
\nMUSQ is part of a trend of music-focused funds attempting to tap into the booming ETF business. KPOP, which focuses on South Korean companies that create music and video content, launched in 2022. TUNE, another music-focused ETF, launched on June 22. Investors increasingly favor the simplicity of ETFs built around themes such as music, battery technology and sustainability. ETF\u2019s asset under management ballooned from $3.4 trillion in 2016 to $10 trillion in 2021, according to EPFR. PwC believes ETFs will grow to $20 trillion by 2026.
\n\u201cI have to believe that some amount of that money is going to be interested in music,\u201d says Schulhof.<\/p>\n

This data comes from MediaIntel.Asia's Media Intelligence and Media Monitoring Platform<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

A third music-focused electronic-traded fund \u2014 or ETF \u2014 is set to debut on the New York Stock Exchange on Friday (June 30). The aptly named MUSQ Global Music Industry ETF, trading under the ticker MUSQ, has 48 stocks representative of the modern music…<\/p>\n","protected":false},"author":253,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[126,692,144,762,477,693,785,194,41,1621,615,1542,664,55],"tags":[2263,3773,3312,2274,2858,10315,10344,10312,3479],"class_list":["post-161594","post","type-post","status-publish","format-standard","hentry","category-apple","category-canada","category-china","category-corporate-social-responsibility","category-investment","category-japan","category-new-york","category-news-chinese-law","category-online-game","category-private-equity","category-south-korea","category-technology","category-television","category-tencent","tag-amazon","tag-distribution","tag-electronics","tag-entertainment","tag-etf","tag-media-intelligence","tag-outer-space","tag-stock-exchange","tag-stocks"],"_links":{"self":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts\/161594","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/users\/253"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/comments?post=161594"}],"version-history":[{"count":1,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts\/161594\/revisions"}],"predecessor-version":[{"id":161595,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts\/161594\/revisions\/161595"}],"wp:attachment":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/media?parent=161594"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/categories?post=161594"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/tags?post=161594"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}