Fund Description: IQ Hedge Long/Short 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 Long/Short Tracker ETF seeks investment results that correspond, before fees and expenses, generally to the price and yield performance of the IQ Hedge Long/Short Index. INDEX DESCRIPTION: The IQ Hedge Long/Short 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 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 a long/short strategy. 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, long/short managers often hedge against un-diversifiable risk, such as market risk (i.e., the returns of the overall market). Certain long/short managers focus 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. The Index does not include hedge funds as Index Components. The Index may include both long and short positions in securities, including, primarily, ETPs. The Index Components generally provide exposures to: U.S. large-capitalization equity; U.S. small-capitalization equity; Emerging market equity; Foreign equity (Europe, Australasia & Far East); U.S. investment grade debt; and U.S. floating rate bank loans. 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. The Fund may also invest in one or more financial instruments, including but not limited to futures contracts and swap agreements. FUND MANAGEMENT: IndexIQ Advisors LLC serves as the investment advisor to the Fund.