David Schulhof has spent three decades inside the music business—not on stage but behind the scenes as an investor, executive, and operator. His experience spans genres and eras, from Bill Monroe’s bluegrass catalog to the rise of Death Row Records and artists like Tupac, Dr. Dre, and MC Hammer. Along the way, he has held executive roles at LiveOne, AGC Film Studios, and IM Global, and served as a producer on Netflix’s documentary about legendary record executive Clive Davis.
Today, as Founder and CEO of MUSQ, LLC, Schulhof brings that industry perspective to the MUSQ Global Music Industry Index ETF (ticker: MUSQ). The fund is designed to provide investors with exposure to the full global music ecosystem—streaming platforms, record labels, live music and ticketing companies, and the technology firms that enable music creation and distribution.
“I think advisors want growth and they want diversification and they want cultural relevance—and that’s what MUSQ is designed to do,” Schulhof tells The Wealth Advisor’s Scott Martin.
A Durable Growth Story with Cultural Staying Power
The investment thesis behind MUSQ rests on a simple idea: music lives at the intersection of culture, technology, and fundamental human behavior. Unlike many thematic strategies tied to short-lived trends, music consumption persists across economic cycles, generations, and geographies.
Goldman Sachs estimates the global music industry could double from roughly $100 billion today to $200 billion by 2035. J.P. Morgan has described music as “the best content story in the history of media,” predicting a decade of double-digit growth driven by streaming adoption, pricing power, and expanding monetization opportunities beyond traditional album sales.
For financial advisors looking to diversify growth exposure beyond AI-heavy mega-cap equities, MUSQ aims to offer a differentiated allocation. The fund seeks to capture an industry undergoing structural transformation while maintaining characteristics that distinguish it from conventional technology investments, including recurring subscription revenue, inflation-linked pricing power, and historically low correlation to broader equity markets.
“Music is indispensable,” Schulhof says. “It’s like food, like water. You have to own it today. And there are so many exciting companies globally today that are doing so well. This is just a very easy, convenient way to invest in all of them.”
Building an Index From Industry Knowledge
MUSQ’s underlying index (MUSQIX) reflects Schulhof’s firsthand understanding of how music companies generate revenue. The methodology divides the global music economy into four core segments: streaming platforms, content and distribution, live music and ticketing, and music equipment and technology.
The portfolio holds approximately 40 companies, with exposure split between U.S. and international markets. Rather than relying on American depositary receipts (ADRs), the fund purchases shares directly on local exchanges in markets such as Amsterdam, Seoul, Taipei, and Tokyo. “We’re buying all of the actual stocks,” says Schulhof. “These aren’t ADRs.”
Direct ownership of local shares provides access to regions where streaming adoption and subscriber growth are accelerating most rapidly.
“For an investor to do it themselves, they would have to open up local trading accounts in all these different countries. So, we provide a very easy and convenient way to get access to all these holdings,” he adds.
Index construction rules further reflect industry dynamics. Eighty percent of holdings qualify as “pure-play” music companies, generating more than half of their revenue from music-related activities. The remaining 20% includes diversified companies such as Apple, Amazon, and Google that derive at least 20% of revenue from music and exert significant influence over streaming economics. Individual positions are capped at 12% of the portfolio, aiming to create balanced exposure across company sizes and geographies.
“A majority of these holdings advisors don’t have, which is why we’re encouraging them to take a really good look,” Schulhof says.
The index rebalances quarterly and incorporates new public listings as companies meet minimum market capitalization requirements of $100 million and liquidity thresholds. StubHub entered the portfolio following its public listing. Emerging market exposure is capped at 20%, even as those regions represent some of the fastest-growing segments of the global music industry.
The Growth Case Beyond Streaming
While streaming remains the most visible growth engine, Schulhof emphasizes that the opportunity spans multiple revenue streams expanding simultaneously. Globally, paid music streaming subscriptions total approximately 589 million, according to IFPI per MUSQ, with penetration still relatively low in many developing markets.
China illustrates that growth potential. The country’s streaming market has expanded rapidly, with Tencent Music operating 88.5 million paid subscribers across its QQ Music, KuGou, and Kuwo platforms in 2022. Subscriber counts grew at a 16% annual rate that year alone.
Pricing power represents another lever. Music streaming subscriptions remain significantly cheaper than video streaming services, despite offering constant access to extensive content libraries.
Given its deeper embed into daily routine compared to video streaming, music streaming users exhibit low churn, even after price increases, and often maintain multiple subscriptions. During periods of economic stress, including the COVID-19 pandemic, music subscriptions proved particularly resilient.
“While [consumers] may have been cutting costs, they weren’t cutting costs in areas like music, which is something that everybody wants to own,” Schulhof says.
MUSQ’s live music exposure represents another potential growth pillar. As touring resumed post-pandemic-lockdown, demand rebounded sharply. Live Nation reported 121 million concert attendees across 45 countries in 2022, a 24% increase compared with 2019 levels. Taylor Swift’s Eras Tour generated more than $1 billion in ticket sales, underscoring the scale of demand for premium live experiences. Goldman Sachs projects global live music revenue could reach $67 billion by 2035, supported by ticket sales and sponsorship growth.
Technology companies within the index also benefit from the democratization of music creation. Advances in digital audio workstations, software instruments, and AI-assisted tools have lowered barriers for independent artists, expanding demand for professional-grade equipment and software.
The Alternative Allocation Argument
Schulhof positions MUSQ as a liquid alternative within advisor portfolios, seeing potential in a 1% to 3% allocation. The characterization reflects several factors that differentiate music industry stocks from broad equity exposure. “It’s an uncorrelated fund,” explains Schulhof. “So many of the stocks in this fund, they don’t really swing with the tides of the markets.”
Music industry revenue drivers often operate independently of traditional economic indicators. Streaming revenue grows through penetration and pricing rather than consumer confidence. Live music demand is tied to touring schedules and artist availability. Music catalog transactions depend on interest rates and private capital demand for predictable royalty streams, not equity market multiples.
“Investors who are looking for growth, for double-digit growth without the volatility of the equity markets, this is a fund they want to consider adding to their portfolios,” Schulhof says.
Inflation sensitivity further differentiates the asset class. Streaming services have demonstrated the ability to raise prices with limited subscriber attrition. Concert promoters pass through higher costs via ticket pricing, particularly for high-demand artists. Royalty structures can adjust upward as streaming revenue grows.
“Music is a global-recession-resistant, streaming-powered royalty economy,” he emphasizes. “And we’re the only ETF that owns the entire value chain globally.”
MUSQ also seeks to diversify portfolios heavily concentrated in artificial intelligence and mega-cap technology stocks. While many investors may already own Microsoft, NVIDIA, and Amazon through core holdings, MUSQ’s exposure to large-cap technology comes through diversified companies where music represents only one component of revenue.
“You want growth, you want diversification, you want things you don’t own,” notes Schulhof. “Everybody’s chasing the AI train, but we’re something that is just too big to ignore.”
International Growth Opportunities
Geographic exposure plays a central role in MUSQ’s investment case. Although the U.S. remains the world’s largest music market, international regions are driving faster growth. According to IFPI data cited by MUSQ, Latin America grew 25.9% in 2022, Sub-Saharan Africa expanded 34.7%, and Asia grew 15.4%.
China’s rise to become the fifth-largest music market globally highlights that momentum. Streaming adoption remains in early stages relative to population size, while platforms operated by Tencent and NetEase continue to add millions of paid subscribers. South Korea’s K-pop industry offers another example, with artists such as BTS and Blackpink achieving global reach through touring, streaming, and merchandise.
Meanwhile, companies such as CTS Eventim, a major European ticketing and live events operator, and Yamaha, a Japanese leader in music equipment manufacturing, illustrate the breadth of the opportunity set across regions and business models.
As Schulhof points out, MUSQ “is a great way to get access to companies around the world.”
MUSQ’s methodology captures the trends through direct ownership of locally traded shares rather than ADRs, aiming to reduce costs and tracking error.
Cultural Relevance Meets Fundamental Growth
Beyond financial characteristics, Schulhof views music’s cultural importance as central to the strategy’s potential appeal. “It’s part of your world, it’s part of your home—and it’s about owning a piece of popular culture,” he says.
Music consumption tends to persist through job losses, market downturns, and personal financial stress. Concert attendance often rebounds quickly once external constraints are removed. Fans continue to spend on merchandise, premium experiences, and exclusive content, reinforcing pricing power across the ecosystem.
Cultural relevance creates competitive advantages that are difficult to quantify. Streaming platforms benefit from habit-driven engagement. Record labels identify and develop artists aligned with cultural trends. Live music companies differentiate through venue access and artist relationships. Equipment manufacturers gain from professional endorsements and aspirational branding.
“This is about embracing a cultural theme, which is music,” Schulhof explains. “We’re not just another ETF. This is unique, and there’s a lot of companies out there, and we’ve made it really easy to invest in all of them.”
Portfolio Implementation Considerations
Schulhof suggests advisors think beyond traditional sector allocations when evaluating MUSQ within client portfolios. The fund doesn’t fit neatly into communication services or consumer discretionary buckets—streaming platforms qualify as technology, record labels operate as media companies, live music promoters run event businesses, and equipment manufacturers fall into industrials or technology depending on classification methodology.
The cross-sector exposure may create diversification benefits within portfolios. Weakness in one segment may be offset by stability or growth in another. For example, economic pressure could affect concert attendance while streaming subscriptions remain stable, or rising rates could challenge growth valuations while accelerating catalog sales activity.
“This is a very strong growth play for investors to own something different that is growing internationally,” Schulhof says.
A 1% to 3% allocation might enable advisors to size exposure appropriately. Smaller allocations may enhance diversification, while larger positions can offer greater participation in industry growth while limiting portfolio-level risk.
Quarterly rebalancing aims to maintain discipline without generating excessive turnover, while the index is designed to incorporate newly public companies efficiently.
Looking Ahead
Schulhof’s outlook emphasizes continued streaming adoption, sustained demand for live music, and ongoing activity in music catalog transactions. Over the longer term, he sees additional monetization opportunities emerging as music integrates more deeply into social media, fitness platforms, and virtual experiences.
“Take a look at the performance,” Schulhof says. “You’ll see how great this fund is performing. And again, it’s just a very steady growth fund.”
The pitch combines fundamental industry analysis with pragmatic portfolio construction: music industry growth appears sustainable, and the holdings aim to capture that growth across multiple business models.
Music industry fundamentals—growing streaming penetration, pricing power, international expansion, and cultural durability—create an investment opportunity advisors can access through a targeted allocation. For portfolios overweight artificial intelligence infrastructure and mega-cap technology, MUSQ seeks to offer growth exposure with different drivers, lower correlation, and access to an industry built on universal human connection rather than technological disruption.
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Additional Resources
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Risk Disclosures
All investing involves risk, and asset allocation and diversification do not guarantee a profit or protection against a loss. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, might be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks, as well as other risks specific to the particular ETF.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. ETF shares are traded on exchanges and are traded and priced throughout the trading day. ETFs permit an investor to purchase a selling interest in a portfolio of stocks throughout the trading day. Because ETFs trade on an exchange, ETF shares are bought and sold at market price (not NAV). The prices of ETFs may sometimes vary significantly from the NAVs of an ETFs’ underlying securities. Brokerage commissions will reduce returns. The returns shown do not represent the returns you would receive if you traded shares at other times. The market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (“NBBO”) as of the time the ETF calculates current NAV per share. NAVs are calculated using prices as of 4:00 PM Eastern Time.
MUSQ Global Music Industry ETF is offered by prospectus. Carefully consider the investment objectives, risks, charges, and expenses. This and other important information can be found in the MUSQ ETF prospectus, which should be read carefully before investing and can be obtained by visiting our website www.musqetf.com, or by calling 888-MUSQETF (888-687-7383).
Exchange Traded Concepts, LLC serves as the investment advisor to the Fund. The Fund is distributed by SEI Investments Distribution Co (SIDCO). SIDCO is not affiliated with Exchange Traded Concepts, LLC.
