Fund Description: IQ Hedge Multi-Strategy Tracker 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 Hedge Multi-Strategy Tracker ETF seeks investment results that correspond, before fees and expenses, generally to the price and yield performance of the IQ Hedge Multi-Strategy Index. INDEX DESCRIPTION: The IQ Hedge Multi-Strategy Index seeks to replicate the risk-adjusted return characteristics of hedge funds that employ various hedge fund investment styles, which may include but are not limited to long/short equity, macro, market neutral, event-driven, fixed-income arbitrage, emerging markets and other strategies commonly used by hedge fund managers. Index Components of this strategy generally provide exposures to: U.S. small-cap equity; emerging market equity, debt and sovereign debt; foreign equity (Europe, Australasia & Far East); U.S. and foreign investment grade debt; U.S. government short- and intermediate-term maturity obligations; U.S. high yield debt; U.S. Treasury Inflation Protection Securities; foreign sovereign debt; foreign currencies and currency futures; real estate investment trusts; 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 Index Components that make up the Index. Long/Short hedge funds typically diversify their risks by limiting the net exposure to particular regions, industries, sectors and market capitalization bands, allowing them to focus on company-specific anomalies. At the same time often hedge against un-diversifiable risk, such as market risk. Some focus may be on specific sectors, regions or industries, on particular investment styles, such as value or growth, or certain types of stocks, such as small or large. Macro hedge funds typically employ top-down macro analysis to identify dislocations in equity, fixed-income, currency and commodity markets that are expected to lead to large price movements. Market Neutral hedge funds typically invest in both long and short positions in stocks while minimizing exposure to the systematic components of risk. Event-Driven hedge funds typically invest in a combination of credit opportunities and event-driven equities. Within the credit-oriented portion, sub-strategies include long/short high yield credit, leveraged loans, capital structure arbitrage and reorganization equity. Within the equity portion, sub-strategies include risk (or merger) arbitrage, holding company arbitrage, special situations and value equities where a change in management, significant product launch, or some other economic catalyst is expected to unlock shareholder wealth. Event-driven managers invest across multiple asset classes and may also seek to exploit shifts in economic cycles. Emerging markets hedge funds typically invest in financial instruments such as equities, sovereign and corporate debt issues and currencies of countries in emerging markets. Emerging countries are those in a transitional state from developing to developed. Fixed Income Arbitrage hedge funds typically employ strategies that seek to take advantage of price differentials and inefficiencies between related fixed-income securities that are related either economically or statistically. Such funds may limit volatility by hedging out interest rate risk and market exposure. FUND MANAGEMENT: The Board of Trustees of the IndexIQ ETF Trust is responsible for the general supervision of the Fund and appoints officers who are responsible for the day-to-day operations of the Fund. IndexIQ Advisors LLC is the investment advisor to the Fund.