New ETF offers exposure to global music industry, but will advisors rock out?

investmentnews.com:

A new exchange-traded fund offers investors exposure to the global music industry, but not every financial advisor is ready to rock out.

The music industry has surged thanks to the return of live events after Covid-19 lockdowns, while new monetization methods and the ability to ride global paid streaming offer attractive growth potential, according to MUSQ, the company behind the MUSQ Global Music Industry ETF. Goldman Sachs predicts predicts the global music industry will grow at a compound annual rate of 12% to reach $53.2 billion by 2030, according to data cited in the product’s white paper.  

The MUSQ ETF offers exposure to the entire music industry ecosystem, with 34.2% allocated toward streaming services and 35.3% to content and distribution. The ETF also invests in live events and ticketing, music equipment and technology, and satellite and broadcast radio.

Holdings are weighted with a maximum initial weight of 7%, and companies must have a minimum market capitalization of $100 million to be included in the index. MUSQ also has a liquidity requirement of $200,000 of trading volume per day, according to ETF.com.

The index includes 48 companies that either derive 50% of their revenue from music, are a top five player in the market or control a greater than 10% market share in streaming or content. Holdings include companies like Universal Music, Warner Music, Live Nation, Spotify and Sony Music.

The product is the brainchild of David Schulhof, the founder and CEO of MUSQ and a music industry veteran whose resume includes serving as president of music publishing at LiveOne, president of IM Global Music and president of music at AGC Studios. The product is meant for retail investors looking for exposure to the music