Fund Description: IQ Hedge Market Neutral 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 Market Neutral Tracker ETF seeks investment results that correspond, before fees and expenses, generally to the price and yield performance of the IQ Hedge Market Neutral Index. INDEX DESCRIPTION: The IQ Hedge Market Neutral Index consists of a number of Index Components selected in accordance with IndexIQ’s rules-based methodology of such Index. Such 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). 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 market neutral strategy. Market Neutral hedge funds typically invest in both long and short positions in stocks while minimizing exposure to the systematic components of risk. These market neutral strategies seek to have a zero beta (or market) exposure to one or more systematic risk factors including the overall market (as represented by the S&P 500 Index), economic sectors or industries, market capitalization, region and country. Market neutral strategies that effectively neutralize the market exposure are not impacted by directional moves in the market. 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-cap equity; U.S. small-cap equity; Emerging market equity; Foreign equity (Europe, Australasia & Far East); U.S. government short- and intermediate-term maturity obligations; U.S. high yield (or junk) debt; U.S. Treasury Inflation Protection Securities (TIPS); U.S. mortgage-backed debt; U.S. convertible debt; and Foreign currencies and currency futures. FUND STRATEGY: The Fund is a fund of funds which means it invests, under normal circumstances, at least 80% of its net assets (excluding collateral held from securities lending), plus the amount of any borrowings for investment purposes, in the investments included in its Index, which includes underlying funds. The Fund employs a passive management or indexing investment approach designed to track the performance of the Index, which was developed by Financial Development Holdco LLC (IndexIQ), the parent company of IndexIQ Advisors LLC. FUND MANAGEMENT: IndexIQ Advisors LLC serves as the investment advisor to the Fund.