Fund Description: IQ Real Return ETF, formerly the IQ CPI Inflation Hedged ETF, is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the IndexIQ ETF Trust, an investment management company. INVESTMENT OBJECTIVE: IQ Real Return ETF seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the IQ Real Return Index. INDEX DESCRIPTION: The IQ Real Return Index seeks to provide investors with a hedge against the U.S. inflation rate by providing a real return or a return above the rate of inflation, as represented by the CPI. The CPI, which is published by the Bureau of Labor Statistics, is a measure of the average change in prices over time of goods and services purchased by households. The CPI is reported with monthly frequency, but due to seasonality and other factors the monthly change in the CPI is reported both as the 1-month change and also on a rolling 12-month basis (the Rolling 12-month CPI Returns). It is the Rolling 12-month CPI Returns, not the monthly returns of the CPI, that the Index incorporates into its construction process. The Index includes exposures to asset classes whose returns incorporate inflation expectations in an attempt to achieve its investment objective. This is based on the premise that capital market returns tend to be forward looking and anticipate economic developments, including inflation expectations. Since the Index’s objective is to provide a real return, the index construction process involves adding a real return target over and above the CPI returns and using the resulting nominal returns (i.e., inflation plus real return) to determine the weights of the Index Components. The Index Components of this Strategy generally provide exposures to: U.S. large cap equity; U.S. small cap equity; Foreign equity (Europe, Australasia & Far East); U.S. government short-, intermediate-, and long-term maturity obligations; Foreign currencies and currency futures; U.S. real estate; and Commodities. FUND STRATEGY: The Fund employs a passive management or indexing investment approach designed to track the performance of the Index. The Fund invests primarily in the components that make up the Index. Under normal circumstances, the Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the investments included in its Index. The Fund is a fund of funds, meaning that its corresponding Index includes primarily funds. The Index consists of a number of Index Components. Such Index Components will include primarily ETFs and/or other exchange-traded vehicles issuing equity securities organized in the U.S. In addition, the Fund may invest up to 20% of its net assets in investments not included in its Index. Furthermore, the Fund may invest in one or more financial instruments, including but not limited to futures contracts, swap agreements and forward contracts, reverse repurchase agreements, and options on securities, indices and futures contracts. The Fund may use a Representative Sampling strategy in seeking to track the performance of its Index by generally investing in a sample of its Index. FUND MANAGEMENT: The Board of Trustees of the IndexIQ ETF Trust is responsible for the general supervision of the Fund. IndexIQ Advisors LLC is the investment advisor to the Fund.