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.
Like a once-forgotten tune's rediscovery, the thematic ETF theme could be poised for a comeback. One fund investors should listen to is the MUSQ Global Music Industry Index ETF (MUSQ), which could add a growth component to an investor's portfolio.
Taylor Swift's "Eras Tour" and Beyonce's "Cowboy Carter Tour" have proven people still want musical experiences and pay top dollar for them. David Schulhof, CEO of the MUSQ ETF, joins Nicole Petallides at the NYSE set to talk about how the ETF gives investors exposure to these events.
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The company in question operates within the finance sector, specifically focusing on investment in the global music industry. It distinguishes itself by targeting companies that derive a significant portion of their revenue—either more than 50% of their annual earnings or over $1 billion in sales—from various sub-segments of the music industry. This strategic focus allows it to leverage the growing potential of the music market worldwide. The investment fund commits a minimum of 80% of its net assets, in addition to any borrowed funds for investment purposes, into securities of Global Music Investments. Despite its specialized market focus, it operates as a non-diversified fund, implying a concentrated investment approach in the global music sector.
This product targets publicly-traded companies worldwide involved in different areas of the music industry, such as production, distribution, and technology that supports music creation and dissemination. The fund identifies those that generate significant revenue from the music industry as primary investment candidates.
Emphasizing the fund's investment strategy, it looks for companies with at least 50% of their annual revenue or $1 billion in annual sales coming explicitly from the music industry. This criterion ensures that investments are made into companies with significant stakes and influence in the music sector.
By operating as a non-diversified fund, it places larger investments in fewer companies, potentially increasing the risk but also the reward from these investments. This structure allows for a more focused investment strategy in the global music industry, aiming to capitalize on the growth and profitability of this sector.