In a climate of market instability that has left many investors on edge, David Schulhof, CEO of MUSQ, LLC, is confidently steering the MUSQ Global Music Industry Index ETF (ticker: MUSQ). His investment strategy is grounded in the belief that music, as a global asset class, operates independently of traditional market fluctuations.
While other sectors grapple with geopolitical tensions and rapid technological changes, Schulhof emphasizes music’s unique position. He argues that music is not merely a luxury that consumers cut back on during tough times; rather, it is an integral part of daily life and a growing investment sector. “We’re very pleased with the performance of MUSQ,” Schulhof shared, highlighting the ETF’s comprehensive exposure to the global music landscape, including streaming services, content creation, and live events.
As market volatility prompts investors to seek diversification, Schulhof posits that music remains a distinct asset class that behaves differently from traditional investments. He notes that during the COVID-19 pandemic, music consumption actually surged, with recorded music revenues increasing by 18.5% in 2021 and 9% in 2022, according to the IFPI’s Global Music Report. This resilience underscores music’s potential as a stable investment, especially when other sectors falter.
MUSQ’s diversified portfolio spans various segments of the music industry, including streaming giants like Spotify and Tencent Music, major record labels such as Universal and Warner Music, and live event companies like Live Nation. Schulhof stresses the importance of a holistic approach to music investing, advocating for exposure not just to royalties but also to live events and technology that support the music ecosystem.
What sets MUSQ apart is its global reach, with approximately half of its holdings in international equities. This international focus allows investors to tap into rapidly growing markets, particularly in regions like Sub-Saharan Africa and Latin America, where recorded music revenues are expanding significantly. Schulhof believes that as the global music industry continues to grow, so too will the opportunities for investors.
In a time when traditional investment strategies are being challenged, MUSQ offers a unique proposition: a cultural ETF that connects investors with the vibrant world of music. As the industry evolves, Schulhof encourages advisors to consider allocating a portion of their portfolios to music, viewing it as a complement to existing investments rather than a replacement. With a dedicated investment conference planned for May 2024, MUSQ aims to deepen engagement with the financial community and highlight the growth potential of the music sector.