With Q3 in the books, investors are singing the praises of the MUSQ Global Music Industry Index ETF (MUSQ ). That’s because it had a strong showing in earnings for certain holdings in the fund. In a current market environment where investors are questioning whether their growth allocations in AI-fueled companies are starting to show signs of froth, the music industry presents a compelling opportunity for alternate growth opportunities.
Billboard.com ran down a list of movers and shakers in the industry that just came off Q3 earnings reports. Three of the names that made the list were CTS Eventim, Universal Music Group, and streaming giant Spotify. All three are within MUSQ’s top five holdings. Despite the ongoing macro environment that’s fraught with stubborn inflation, geopolitical tensions, tariffs, and other factors, these companies were still able to churn out strong revenues.
CTS Eventim: The German company saw its revenue rise 4% to $999 million. Revenue for its live entertainment division grew 5.5% to $775 million. Its ticketing division revenue rose 2.1% to $247 million. It accomplished these revenue figures despite “challenging economic conditions” in its home market.
Universal Music Group: As Billboard mentioned, UMG posted another strong quarter. Its revenue rose 10.2% to $3.5 billion. Ongoing subscriptions can be a sustaining driver of revenue. Universal exceled in that department. Its recorded music subscription revenue rose 8.6%, though other streaming revenue was flat at $394 million.
Spotify: The company saw more than a 600% gain in its stock price in the last three years. And Spotify continued its market dominance in the streaming music industry. Its subscribership rose 12% to 281 million. Gross margin improved by 56 basis points to 31.6%. Given this, revenue rose 12% to $5 billion. And gross profit grew 9% to $1.84 billion. “We have the tools we need — pricing, product innovation, operational leverage, and eventually the ads turnaround — to deliver both revenue growth and profit expansion,” said CEO Daniel Ek.
The Full Discography in 1 ETF
As mentioned, the common denominator of the three companies is that they occupy spots in the top five holdings of MUSQ. The fund offers easy access to the music industry. It capitalizes on the strength of names found within the MUSQ Global Music Industry Index. It accomplishes this through the convenience, flexibility, and tax efficiency of an ETF investment vehicle.
As Billboard.com noted, there’s a growing divide in the music industry. Companies are benefiting from live music revenue, while others are deriving their revenue growth from streaming platforms. MUSQ combines all these companies under one ETF. It’s akin to getting an artist’s full discography in the convenience of one album.
The fund can provide a satellite position in ETF investing themes that combine an investor’s personal taste with the goal of earning a return on their capital. For music lovers or for those who simply want to diversify their growth portfolio, MUSQ is an ideal option that should be under consideration.
VettaFi LLC (“VettaFi”) is the index provider for MUSQ, which it receives an index licensing fee. However, MUSQ is not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of MUSQ.
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