Music has become a compelling and disruptive investment theme thanks to growth in music streaming, the resurgence of live music events, and new technologies enabling more music creation and monetization.
In this episode, we speak to MUSQ’s Founder and CEO, David Schulhof, about the MUSQIX Index and the investment case for thematic exposure to the global music industry. The index provides exposure to music streaming, live music events and ticketing, content, technology and equipment, and satellite and radio, covering the entire global music industry.
David Schulhof is an American music industry executive and investor with 25+ years of experience and expertise. He argues that music represents an under-hyped, under-monetized media asset that is cheap relative to other streaming competition. This thesis is supported by JP Morgan’s contention that music is the best “content story” in the media business.
The MUSQ ETF that tracks the index celebrated its 1st anniversary in July. The last year has been an important year for music, marked by price increases on music streaming platforms, improved content monetization, and the deployment of generative AI to create music. In addition, live music has made a major comeback post-COVID, catering to superfans like the “Swifties” and offering immersive music experiences like those at the Sphere.
The MUSQIX Index
0:45 Learn about David’s experience in the music industry.
0:58 Why did David launch the index behind the MUSQ ETF, and what unique exposure does it provide?
1:17 How does this index provide liquid, convenient, and portable exposure?
1:29 What segments of the music industry are covered by the index?
2:03 What are some of the catalysts behind the growth story?
2:19 Why is music “cheap” on a relative basis?
2:48 How much of music revenues come from streaming? How fast is this segment growing in the U.S. and abroad?
3:20 Why is this music’s “golden age”?
4:02 What is the index methodology? What are some of the names in the index, and how often are they rebalanced?
5:28 What is the geographic mix, and what are some of the companies outside the U.S. to which the index provides exposure?
6:13 Music is a global theme with the largest revenue growth in Emerging Markets.
6:50 How mobile phones are a growth driver of this theme.
7:30 What growth is the music industry experiencing today?
8:08 What additional research is out there that supports the investment case?
8:30 Where should investors position this in an investment portfolio?
9:20 How does music provide diversification?
9:53 Where can investors find more information about the ETF that tracks this index?
For more information, please visit VettaFi.com | ETF Trends.
