Fund Description: IQ Hedge Event-Driven Tracker 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 Hedge Event-Driven Tracker ETF seeks investment results that correspond, before fees and expenses, generally to the price and yield performance of the IQ Hedge Event-Driven Index. INDEX DESCRIPTION: The IQ Hedge Event-Driven Index consists of a number of components selected in accordance with IndexIQ’s rules-based methodology. The Index was developed by Financial Development Holdco LLC (IndexIQ), the parent company of IndexIQ Advisors LLC, the Fund's investment advisor. The Index Components will include primarily ETFs and/or other exchange-traded vehicles issuing equity securities organized in the U.S., such as exchange-traded commodity pools (ETVs), exchange-traded notes (ETNs), collectively as exchange-traded products (ETPs). The Index may include both long and short positions in securities, including, primarily, ETPs. The Index seeks to track the beta portion of the returns (i.e., that portion of the returns of hedge funds that are non-idiosyncratic, or unrelated to manager skill) of hedge funds pursuing an event- driven strategy. 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 (below investment grade corporate bonds or junk bonds), leveraged loans (bank debt, mezzanine, or self-oriented loans), capital structure arbitrage (debt vs. debt or debt vs. equity), and reorganization equity. Event-Driven managers invest across multiple asset classes and may also seek to exploit shifts in economic cycles. The Index does not include hedge funds as Index Components. The Index generally is based on the premise that hedge fund returns, when aggregated among hedge funds with similar investment styles, display over time significant exposures to a set of common investment strategies and asset classes. By creating an index that has similar exposures to the same investment strategies and asset classes as hedge funds generally, IndexIQ seeks to replicate the beta return characteristics of hedge funds. The Index Components of this strategy generally provide exposures to: U.S. large-capitalization equity; Emerging market equity; U.S. government short- and intermediate-term maturity obligations; U.S. mortgage-backed debt; U.S. investment grade debt; and U.S. convertible debt. The Index is unlike traditional market-oriented indexes like the Standard & Poor’s 500 Composite Stock Total Return Index (the S&P 500 Index). Instead of tracking the performance of publicly-traded issuers representing a market or industry sector, the Index seeks to track the returns of distinct hedge fund investment styles. FUND STRATEGY: The Fund is a fund of funds which means it 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, which includes underlying funds. The Fund does not invest in hedge funds. The Fund employs a passive management or indexing investment approach designed to track the performance of the Index. FUND MANAGEMENT: IndexIQ Advisors LLC serves as the investment advisor to the Fund.