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Taylor Swift and Beyoncé Fans Could Spark a New Meme-Stock Revolution with Music ETFs

Hannah Perry | November 21, 2024

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How Taylor Swift and Beyoncé Fans Could Ignite a New Meme-Stock Frenzy with Music ETFs

A Fascinating Parallels Between Celebrity Fandom and Stock Market Trends

As the co-founder of GameStop Corp., Gary Kusin understands the phenomenon of loyalty among consumers firsthand. During the 2021 meme-stock explosion, GameStop’s shares soared as passionate fans rallied to support their favorite video game retailer. According to Kusin, this intense commitment from consumers was not simply transactional; it reflected a genuine connection to the brand and its communities. He believes that passionate fanbases, like those of Taylor Swift and Beyoncé, can create similar opportunities in today’s markets, particularly in the burgeoning world of music-related exchange-traded funds (ETFs).

The Power of Fandom in the Financial Sphere

Kusin points out that the emotional and social aspects of fandom transcend what is typically understood as customer loyalty. “Swifties are not customers, and GameStop people are not customers – it’s the fabric of their lives,” he explains. This deep-rooted connection makes these fans influential, and Kusin sees potential for them to drive investment interest in music ETFs.

The financial numbers associated with Taylor Swift’s “Eras” tour are staggering. The tour, which began in March 2023 and will run through December, is projected to gross over $1 billion by year-end. Future estimates suggest a broader economic impact in the U.S. could exceed $10 billion, as Swift’s events stimulate not just ticket sales, but a range of associated industries such as travel and hospitality.

The Coming of Music ETFs

In light of these trends, David Schulhof, founder and CEO of the MUSQ Global Music Industry ETF, is keen on harnessing the power of celebrity-driven investments. Schulhof sees immense potential for a “real meme frenzy” among fans when it comes to ETFs specifically targeted around celebrated figures like Swift and Beyoncé.

Launched in July 2023, MUSQ has already made strides by including major holdings such as Sony Group, Apple, Spotify, Live Nation, and Universal Music Group. Schulhof is considering launching two additional ETFs focused on Taylor Swift and Beyoncé Knowles, which he believes will capitalize on the massive fanbases of these artists.

Potential Holdings and Market Impact

For an ETF focused on Taylor Swift, potential holdings might include:

– Universal Music Group (record label)
– Live Nation (manages ticketing for the Eras tour)
– AMC Entertainment Holdings (which released the concert film “Taylor Swift: The Eras Tour”)
– Imax Corporation (also showcased the record-breaking concert film)
– DraftKings (due to interest in Swift’s boyfriend, NFL star Travis Kelce)

As for Beyoncé, the prospective ETF could consist of companies she has partnerships with, such as:

– Sony Group (record label)
– Live Nation
– Levi Strauss & Co.
– PepsiCo
– Uber Technologies
– Peloton Interactive
– L’Oréal

With 284 million and 314 million followers on Instagram, respectively, Taylor Swift and Beyoncé possess extensive reach, thus presenting a lucrative opportunity for fans-turned-investors. Schulhof notes, “If we could feed the fan base into buying shares, that would be a powerful story.”

The Future of Celebrity-Focused Investments

These could be game-changing ventures for the financial industry. Schulhof mentions that they are currently working on the timing and strategies for launching the ETFs, which might trade under the ticker symbols “TYLR” for Taylor Swift and “BEYC” for Beyoncé.

Adding another layer of interest, Schulhof emphasizes Jay-Z’s business empire, particularly his privately held Roc Nation, which encompasses music, sports, and publishing. He provocatively suggests that Jay-Z could consider an IPO for Roc Nation, likening it to opening retail shares to a wider audience. Schulhof’s past experience working with Jay-Z on the film “Paid in Full” has left him impressed by the music mogul’s entrepreneurial spirit.

Conclusion: The Intersection of Fandom and Finance

In conclusion, the concept of transforming fandom into financial backing represents a significant paradigm shift in investment strategies. Given the emotional commitment fans hold towards their favorite artists, music-related ETFs focused on figures like Taylor Swift and Beyoncé could pave the way for a novel investment trend. As Schulhof prepares to launch these funds, the intersection of fandom and finance seems poised for an exciting evolution—one that could ultimately democratize investment opportunities while further enriching the economic impact of the music industry.

For more insights on investing in the entertainment industry, stay updated with [MarketWatch](https://www.marketwatch.com).