Fund Description: IQ 50 Percent Hedged FTSE International ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the IndexIQ ETF Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The IQ 50 Percent Hedged FTSE International ETF seeks investment results that correspond, before fees and expenses, generally to the price and yield performance of the FTSE Developed ex North America 50% Hedged to USD Index. INDEX DESCRIPTION: The FTSE Developed ex North America 50% Hedged to USD Index is an equity benchmark of international stocks from developed markets, with approximately half of the currency exposure of the securities included in the Index hedged against the U.S. dollar on a monthly basis. The Index includes stocks from Europe, Australasia, and the Far East. The Index includes primarily large- and mid-capitalization companies. The primary sectors within the Index include financials, consumer goods, and industrials. The composition of the Index may change over time. The Index and the Fund’s net asset value (NAV) are denominated in U.S. dollars, while the component securities of the Index are generally denominated in foreign currencies. The Index is designed to reduce by approximately half the Fund’s exposure to fluctuations in the value of component currencies relative to the U.S. dollar. The Index applies a one month forward rate to approximately half of the value of the non-U.S. dollar denominated securities included in the Index to hedge against fluctuations for this portion of the Fund’s exposure to component securities relative to the U.S. dollar. The hedge is reset on a monthly basis. FUND STRATEGY: The Fund employs a passive management or indexing investment approach designed to track the performance of the Index. The Fund invests, under normal circumstances, at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the securities and other instruments included in its Index. The Fund is expected to have lower returns than a similar fund that does not hedge any of its currency exposure when the component currencies are rising relative to the U.S. dollar. The Fund is expected to have higher returns than a similar unhedged fund when the component currencies are falling relative to the U.S. dollar. In order to replicate the hedging component of the Index, the Fund intends to enter into foreign currency forward contracts and futures contracts designed to offset approximately half of the Fund’s exposure to the component currencies. The Fund’s exposure to foreign currency forward contracts is based on approximately half of the Fund’s aggregate exposure to the component currencies. The Fund may also invest its assets in cash and cash equivalents, as well as in shares of other investment companies, options and swaps. FUND MANAGEMENT: IndexIQ Advisors LLC serves as the investment advisor to the Fund.