David Schulhof, Founder and CEO of MUSQ, LLC, The Music ETF, tunes into award season a little differently than most viewers. When the 2026 Grammys aired on February 1, featuring artists such as Bad Bunny, Lady Gaga, and Kendrick Lamar, Schulhof saw more than standout performances. He saw an industry generating billions of dollars in streaming revenue, sold-out arena tours, and global fan engagement that continues to expand at scale.
For financial advisors, the Grammys highlight something even bigger: an industry Goldman Sachs projects will grow from $100 billion to $200 billion by 2030.
Schulhof’s MUSQ Global Music Industry Index ETF (ticker: MUSQ) seeks to capture that growth by providing exposure across the entire music ecosystem, including streaming platforms, content publishers, live entertainment venues, and equipment manufacturers.
“If you look at our fund, we’re capturing everything you saw at the Grammys. You’re capturing music publishing, you’re capturing recorded music, and you’re capturing live music events and ticketing,” Schulhof says.
Launched in July 2023, MUSQ was the first pure-play music exchange-traded fund, with close to 40 holdings spanning the global industry. In an interview with The Wealth Advisor’s Scott Martin, Schulhof explains how advisors may use music industry exposure to help differentiate client portfolios while tapping into long-term growth drivers such as streaming subscriptions, emerging-market adoption, and increased superfan spending.
“Music’s simply too big to ignore,” he says. “It’s growing so fast, and we think advisors should take a good look at our fund.”
The Streaming Revolution Drives Revenue
Streaming remains the primary engine behind the music industry’s revenue growth, creating recurring income streams for platforms, labels, publishers, and artists. Spotify, one of MUSQ’s largest pure-play holdings, now serves over 713 million users across more than 180 markets. Since launching in 2008 as a music-only service, the platform has expanded into a broader audio ecosystem that includes podcasts and audiobooks.
“They’re like a de facto leader in streaming,” Schulhof notes.
Streaming revenue is projected to grow at approximately 10% annually through 2030, driven by both rising subscriber penetration and steady price increases. Unlike physical media or downloads, streaming generates predictable cash flows that continue to scale globally. Despite comparable engagement levels, music subscriptions remain significantly cheaper than video streaming services.
“Music is incredibly undervalued and incredibly under-monetized today,” Schulhof explains. “Today, you pay $11.99 for 250 million songs. You pay more than two times that for premium content on any of those services.”
Goldman Sachs research suggests that streaming platforms have substantial pricing power. Video services such as Netflix, Disney+, and HBO have raised prices roughly 10% every two to three years with limited subscriber churn. Music platforms are beginning to follow the same path, with each incremental price increase translating into billions of dollars in additional revenue.
“That’s why you see companies like Spotify continue to raise rates every quarter because by raising it by $1, it’s very little attrition, but that adds 300 million paid streaming subscribers that adds like $3 billion of revenue to the bottom line,” Schulhof explains. “That’s why the stock’s doing so well.”
Emerging Markets Accelerate Adoption
Much of the music industry’s future expansion is expected to come from outside the United States. While streaming adoption is already mature in developed markets, subscriber growth in Latin America, Asia, and Africa continues at rates of 20% to 30% annually, according to Schulhof. Genres such as Latin music and K-pop have moved from niche audiences to mainstream global appeal.
MUSQ’s portfolio reflects the geographic opportunity. Approximately half of the fund’s holdings operate outside the United States, including Tencent Music in China, Japanese companies such as Avex and Yamaha, and South Korean entertainment agencies including HYBE and JYP Entertainment.
“I think you want to own something like music that’s uncorrelated. You want to have something like this in the portfolio, but these are all very big names. We have companies in the trillions of value in the fund,” Schulhof notes. “If you look, Apple, Amazon, and Google are also in MUSQ. They’re small percentages, but they’re part of the music ecosystem.”
The fund’s index methodology allocates 80% of holdings to pure-play companies deriving at least 50% of revenue from music, while the remaining 20% is allocated to diversified firms generating more than 20% of revenue from music. Major technology platforms such as Apple Music, YouTube Music, and Amazon Music qualify for inclusion because of their role in global music distribution, even though music represents a smaller portion of their overall business.
Schulhof emphasizes the fund’s comprehensive approach to capturing the entire landscape, from dedicated music platforms to the audio divisions of technology giants. “We want to include all of them and give investors an opportunity to own all of them,” he says.
Live Entertainment Rebounds Strongly
Live entertainment has staged a powerful comeback since the COVID-19 pandemic, with fans demonstrating a willingness to pay premium prices for immersive experiences. Concert revenue has increased tenfold from COVID-era lows and surpassed prepandemic levels by 2022. In 2024 alone, Taylor Swift’s Eras Tour generated more than $1 billion, while artists such as Coldplay, Pink, and Bruce Springsteen each grossed hundreds of millions globally, according to Pollstar data cited by MUSQ.
“So, companies in our fund, obviously Live Nation, but also internationally like CTS Eventim and other companies like Sphere and Madison Square Garden, they’re all doing really well because superfans are paying up for tickets,” explains Schulhof. “They want immersive live experiences. So, all these concert stocks are doing exceptionally well.”
Universal Music Group estimates that roughly 30% of music fans qualify as superfans, spending three times more than average consumers on concerts, merchandise, and premium content. The company believes that improved monetization strategies could add $4 billion annually to industry revenue, according to the Music in the Air report as cited by MUSQ. At the same time, venues are investing heavily in technology to enhance live experiences, from Madison Square Garden’s renovations to the immersive Sphere venue in Las Vegas.
“We think live music events and ticketing will continue to grow with excitement around immersive shows and concerts, and music’s really a very uncorrelated asset class from our perspective,” Schulhof adds.
Music Catalogs Attract Alternative Investment
Music publishing and recording rights have increasingly attracted institutional capital, with private equity firms, hedge funds, and other investors seeking steady royalty income. High-profile artists including Bob Dylan, Bruce Springsteen, and Stevie Nicks have sold their catalogs for hundreds of millions of dollars. Goldman Sachs research cited by MUSQ projects music publishing revenue will grow at a 7.6% compound annual growth rate through 2030, reaching $14.7 billion.
Royalties generate predictable cash flows similar to infrastructure or real estate investments, with limited correlation to broader equity markets. Each stream on a platform generates revenue for rights holders, creating income that can persist for decades. MUSQ’s content and distribution holdings include Universal Music Group, Warner Music Group, Sony Group, and regional publishers across Europe and Asia.
“This whole ecosystem is working together, and MUSQ gives the investor really global exposure to all these different companies,” Schulhof says.
Portfolio Differentiation Matters
Many client portfolios today look increasingly similar, often dominated by broad index funds and mega-cap technology stocks. MUSQ aims to offer exposure to companies that are largely absent from standard benchmarks. Spotify, for example, represented an 8.34% position in the fund as of December 31, 2025, yet carries minimal weight in broad market indexes. International K-pop agencies, Japanese equipment manufacturers, and European ticketing companies further diversify geographic and sector exposure.
Music also provides a natural way for advisors to connect with clients. Grammy performances, concert experiences, and favorite artists can become entry points for broader portfolio discussions. Schulhof expects market volatility to persist, reinforcing the case for assets with low correlation.
“Look, I think the market will see a pretty big correction of 10% to 15%, and I think you want to own something like music that’s uncorrelated,” he observes. “You want to have something like this in the portfolio.”
Music consumption remains resilient during economic downturns, Schulhof adds. During the pandemic, consumers maintained streaming subscriptions even as discretionary spending declined across other categories.
“It’s really not impacted by tariffs in any way. It’s not swinging with the tides on the market,” Schulhof says. “It’s a cultural ETF. It’s a great way to own a popular cultural theme with real companies that are delivering a lot of value. And we think that advisors really need to diversify today.”
And the appeal extends beyond economic cycles.
“In good times and bad people want to listen to music,” he points out. “People always want to enjoy it. They’re always going to pay for it. So, that’s why you see these numbers continue to grow, and that’s why streaming continues to grow, especially in the emerging markets.”
Building Advisor Engagement
MUSQ is hosting its inaugural Amplify Music Investment Summit on May 8, 2026, at the Virgin Hotel in New York City. The event will feature keynote speakers and presentations from CEOs representing companies across streaming, content and distribution, live entertainment and ticketing, equipment, and artificial intelligence applications in music.
The summit aims to provide advisors with direct access to management teams and industry insights. Advisors can register for tickets, with the full-day program running from 7:30am through an evening cocktail reception.
“RIAs, FAs, wealth managers can all come out,” Schulhof says. “It’ll be a day of excitement.”
The conference represents an opportunity for advisors to hear directly from executives managing companies within the fund’s portfolio. Sessions will break down the music industry into vertical segments, allowing attendees to understand how each component contributes to overall industry growth. Schulhof expects to announce additional keynote speakers in the coming weeks.
Beyond the summit, the fund maintains newsletters and community engagement initiatives around concerts and music industry trends to help advisors stay informed about developments affecting portfolio holdings.
A Global Approach to Music Investment
MUSQ’s construction reflects the global nature of music consumption and production. As of the most recent quarter-end, the fund held companies across multiple continents and four primary categories: streaming platforms, content and distribution, live music and ticketing, and equipment and technology. The portfolio rebalances quarterly, caps individual positions at 12%, and maintains a minimum allocation of 25 basis points.
The strategy seeks exposure to an industry experiencing secular growth across multiple revenue streams, combining economic opportunity with cultural relevance.
“We’re creating a really nice way to own a piece of the industry, own your favorite artist, get access to shows, get access to tickets, and really learn more about how you can invest globally in music,” notes Schulhof.
That durability underpins the long-term thesis behind music as an investment, particularly in a market environment where correlations continue to rise and differentiation is harder to find.
“In good times and bad, people want to listen to music,” he concludes. “Music’s always going to be there.”
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Additional Resources
- Contact MUSQ
- Why Invest in MUSQ
- Investor Deck
- MUSQ White Paper
- MUSQ Fact Sheet
- 2026 Amplify Music Investment Summit Tickets
- Invest in MUSQ
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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..
