Fund Description: IQ Merger Arbitrage ETF, formerly the IQ ARB Merger Arbitrage 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 Merger Arbitrage ETF seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the IQ Merger Arbitrage Index. INDEX DESCRIPTION: The IQ Merger Arbitrage Index objective is to employ a systematic investment process designed to identify opportunities in companies whose equity securities trade in developed markets, including the U.S., and which are involved in announced mergers, acquisitions and other buyout-related transactions. The Index seeks to capitalize on the spread between the current market price of the target company’s stock and the price received by the holder of that stock upon consummation of the buyout-related transaction. The Index first identifies companies that have been announced as targets of mergers, acquisitions, leveraged buyouts or private equity transactions, where the bidder is seeking a majority interest in the company. Based on certain criteria, the list of eligible index components is narrowed to include a smaller group of qualified companies segmented based on computations regarding the price differentials between the current market price of each target company’s stock and the announced price for the buyout-related transaction. From this smaller universe of companies, a constrained liquidity-weighted group of Index Components are constructed, with position sizes limited by trading activity. In addition, the Index includes short exposure to the U.S. and non-U.S. equity markets, effected through a long position in inverse and/or ultra inverse ETFs, in order to isolate, at least in part, the merger arbitrage-related attributes of the Index from the general equity market exposure of the Index. 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. The Fund invests, under normal circumstances, at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the investments included in its Index. 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. Alternatively, the Fund may buy or sell futures contracts to replicate exposures to the Index Components. 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.