MUSQ Global Music Industry Index ETF

MUSQ Global Music Industry Index ETF (MUSQ) tracks the MUSQ Global Music Industry Index: about 25 companies in music streaming, content, live events and equipment, led by Spotify, Live Nation and Universal Music Group. It gives 80% of index weight to companies built mainly around music and normally keeps at least 40% of assets outside the US. The trade-off is a 0.75% yearly expense ratio and a short, uneven record since its July 2023 launch.

• Over the year to Oct 23, 2026, MUSQ returned -11.9%, 7th of 7 among similar funds.
• Its worst full calendar year was 2024 (-4.9%); its best was 2025 (+19.6%).
• The deepest fall in its price history was 23.1% (Sep 16, 2025 to Mar 27, 2026), not yet recovered.

As of Jul 31, 2026, the fund held 25 securities; the ten largest made up 64.12% of assets.

• Over the three months to Jul 31, 2026, investors added a net $740K (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.20%, -5.83%, +3.69%.

MUSQ aims to match, before fees, the total return (price change plus dividends) of the MUSQ Global Music Industry Index, run by index provider VettaFi and sponsor MUSQ, LLC. Their committee screens listed companies, music funds and music royalty trusts for ties to streaming, music content and distribution, live events and ticketing, or music equipment and technology. Each needs at least $200 million in market value, $500,000 in average daily trading, and 20% of shares freely traded.

Companies that get, or may come to get, at least half their revenue from music are “pure plays” and share 80% of the index weight. “Diversified” companies with a smaller but significant music business share the other 20%. Within each group, weights follow the market value of freely traded shares, capped at 12% per stock with a 0.25% minimum. The index is rebalanced quarterly, in January, April, July and October, and had 25 members as of August 3, 2026.

The fund, issued by Exchange Traded Concepts, generally holds every index stock at its index weight (replication). It may instead hold a representative sample and invest up to 20% outside the index. It normally spans at least three countries, with at least 40% of assets outside the US. There is no leverage, options or swaps: stocks were 99.6% of assets as of July 31, 2026.

• MUSQ charges 0.75% a year, versus an average of 0.61% for the similar funds below (6th of 7, cheapest first).
• Of that, 0.89% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.14% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $77 in the first year and $1,083 over 10 years (assuming a 5% annual return).

MUSQ holds about 25 stocks from a single industry, has a short history and fell 23.1% from its peak, so it fits a small slice of a portfolio rather than its core.

MUSQ adds a concentrated bet on one industry across the US, Asia and Europe. It launched in July 2023, so it has no record through the 2008, 2020 or 2022 downturns. Its worst full calendar year was 2024, a 4.63% loss, but it was down 9.4% for 2026 through October 23. Its deepest drop was 23.1%, from September 16, 2025 to March 27, 2026, and the fund had not recovered by October 23, 2026. Drawing money out during such a slump would lock in losses. Income is minor: a 0.71% yield over the 12 months to October 23, 2026, with payouts once a year. Under the SEC's standard example, costs on $10,000 earning 5% a year come to $77 in year one and $1,083 over ten years. Past results don't predict future ones, and a retirement plan needs to weigh the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).