Fund Description: IQ MacKay Municipal Intermediate ETF, formerly IQ MacKay Shields Municipal Intermediate ETF, is an actively managed exchange-traded fund or Actively Managed ETF which is a separate investment portfolio of theIndexIQ Active ETF Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The IQ MacKay Municipal Intermediate ETF seeks current income exempt from federal income tax. The Fund is an actively managed ETF and thus does not seek to replicate the performance of a specific index. Rather, the Adviser & Sub-adviser has discretion on a daily basis to actively manage the Fund’s portfolio in accordance with the Fund’s investment objective. FUND STRATEGY: The Fund, under normal circumstances, invests at least 80% of its assets (net assets plus borrowings for investment purposes) in debt securities whose interest is, in the opinion of bond counsel for the issuer at the time of issuance, exempt from federal income tax (Municipal Bonds). The Fund typically invests at least 80% of its net assets in Municipal Bonds that are rated investment grade by at least one independent rating agency. The Fund generally will maintain a dollar-weighted average duration of 3 to 10 years. The Fund may not invest more than 20% of its net assets in tax-exempt securities subject to the federal alternative minimum tax. The Fund may invest more than 25% of its total assets in Municipal Bonds that are related in such a way that an economic, business or political development or change affecting one such security could also affect the other securities. However, the Fund’s investments will be diversified among a minimum of ten different sectors of the Municipal Bond market. The Fund’s investments will be diversified among at least 15 different states, with no more than 30% of the Fund’s securities invested in municipal securities from a single state. Some of the Fund’s earnings may be subject to federal tax and most may be subject to state and local taxes. The Subadvisor’s investment process begins with an assessment macro factors that may impact the Municipal Bond market, including tax rates, U.S. Treasury rates, and global economic data, as well as other regulatory, tax, governmental, and technical factors that may impact the Municipal Bond market. Following the assessment of these factors, the Subadvisor develops an investment strategy to position the Fund among various sectors of the Municipal Bond market and different states. The Subadvisor then employs a fundamental, bottom-up credit research analysis to select individual Municipal Bonds. FUND MANAGEMENT: IndexIQ Advisors LLC serves as the investment advisor to the Fund. MacKay Shields LLC serves as the investment sub-advisor to the Fund.