Note: Inflation typically is analyzed on a year-over-year (rolling 12-month) basis, and therefore YTD and Quarterly performance is not shown. For periods greater than 12 months, returns are annualized to be comparable to the compounded growth rate of inflation.

The performance data quoted above represents past performance. Past performance is not a guarantee of future results. Investment return and value of the Fund shares will fluctuate so that an investor's shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Fund returns reflect dividends and capital gains distributions. Index performance is for illustrative purposes only and does not represent actual Fund performance. One cannot invest directly in an index. Performance data for the Index assumes reinvestment of dividends and is net of the management fees for the Index's components, as applicable, but it does not reflect management fees, transaction costs or other expenses that you would pay if you invested in the Fund directly.

Total Returns are calculated using the daily 4:00 pm net asset value (NAV). Market price returns reflect the share price of the ETF as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times.

IQ CPI Inflation Hedged ETF: The Fund’s investment performance, because it is a fund of funds, depends on the investment performance of the underlying ETFs in which it invests. There is no guarantee that the Fund itself, or each of the ETFs in the Fund’s portfolio, will perform exactly as its underlying index. The Fund is non-diversified and is susceptible to greater losses if a single portfolio investment declines than would a diversified mutual fund. The Fund’s underlying ETFs invest in: foreign securities, which subject them to risk of loss not typically associated with domestic markets, such as currency fluctuations and political uncertainty; commodities markets, which subject them to greater volatility than investments in traditional securities, such as stocks and bonds; and fixed income securities, which subject them to credit risk – the possibility that the issuer of a security will be unable to make interest payments and/or repay the principal on its debt – and interest rate risk – changes in the value of a fixed-income security resulting from changes in interest rates. Loss may result from the imposition of exchange controls, confiscations and other government restrictions. Foreign risks will normally be greater when the Fund invests in emerging markets. Leverage, including borrowing, will cause some of the Fund’s underlying ETFs to be more volatile than if the underlying ETFs had not been leveraged.

Returns for all periods are cumulative except for 3-year and 5-year periods, which are annualized.

* Fund Inception Date: October 27, 2009. The Index and Fund performance since inception in the table above is based on the Fund inception date. The Index inception date is December 31, 2008.

** Consumer Price Index (CPI) is published monthly on the 15th of each month. Since inception performance is not available due to non-daily reporting of CPI.

¹ As stated in the Fund's prospectus, the expense ratio of 0.48% is expressed as a unitary fee to cover expenses incurred in connection with managing the portfolio. In addition to this expense ratio, the Fund will indirectly bear its proportionate share of the fees and expenses of the underlying ETFs in which it invests. As of September 30, 2009 the Fund estimated that these fees, known as "Acquired Fund Fees and Expenses," would be 0.17% annualized for the fiscal year ending April 30, 2010. However, this amount will vary over time due to changes in the underlying ETF fees and expenses and the constitution of the Index.

² IOPV, or Indicative Optimized Portfolio Value, is a calculation disseminated by the stock exchange that approximates the Fund's NAV every 15 seconds throughout the trading day.

IQ CPI INFLATION HEDGE INDEX

The IQ CPI Inflation Hedged Index is comprised solely of ETFs. The Index does not include hedge funds as components. Returns presented are net of underlying ETF fees, but do not reflect the deduction of management fees, taxes and other expenses. The Consumer Price Index is published by the United States Bureau of Labor Statistics and is a measure of the average change in prices over time of goods and services purchased by households. The Barclays Capital U.S. TIPS Index measures the performance of inflation protected public obligations of the U.S. Treasury, also known as “TIPS”.

The IQ CPI Inflation Hedged Index is the exclusive property of IndexIQ which has contracted with Standard & Poor's ("S&P") to maintain and calculate the Index. S&P shall have no liability for any errors or omissions in calculating the Index.

IndexIQ ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund.

Note: Inflation typically is analyzed on a year-over-year (rolling 12-month) basis, and therefore YTD and Quarterly performance is not shown. For periods greater than 12 months, returns are annualized to be comparable to the compounded growth rate of inflation.

The performance data quoted above represents past performance. Past performance is not a guarantee of future results. Investment return and value of the Fund shares will fluctuate so that an investor's shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Fund returns reflect dividends and capital gains distributions. Index performance is for illustrative purposes only and does not represent actual Fund performance. One cannot invest directly in an index. Performance data for the Index assumes reinvestment of dividends and is net of the management fees for the Index's components, as applicable, but it does not reflect management fees, transaction costs or other expenses that you would pay if you invested in the Fund directly.

Total Returns are calculated using the daily 4:00 pm net asset value (NAV). Market price returns reflect the share price of the ETF as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times.

IQ CPI Inflation Hedged ETF: The Fund’s investment performance, because it is a fund of funds, depends on the investment performance of the underlying ETFs in which it invests. There is no guarantee that the Fund itself, or each of the ETFs in the Fund’s portfolio, will perform exactly as its underlying index. The Fund is non-diversified and is susceptible to greater losses if a single portfolio investment declines than would a diversified mutual fund. The Fund’s underlying ETFs invest in: foreign securities, which subject them to risk of loss not typically associated with domestic markets, such as currency fluctuations and political uncertainty; commodities markets, which subject them to greater volatility than investments in traditional securities, such as stocks and bonds; and fixed income securities, which subject them to credit risk – the possibility that the issuer of a security will be unable to make interest payments and/or repay the principal on its debt – and interest rate risk – changes in the value of a fixed-income security resulting from changes in interest rates. Loss may result from the imposition of exchange controls, confiscations and other government restrictions. Foreign risks will normally be greater when the Fund invests in emerging markets. Leverage, including borrowing, will cause some of the Fund’s underlying ETFs to be more volatile than if the underlying ETFs had not been leveraged.

Returns for all periods are cumulative except for 3-year and 5-year periods, which are annualized.

* Fund Inception Date: October 27, 2009. The Index and Fund performance since inception in the table above is based on the Fund inception date. The Index inception date is December 31, 2008.

** Consumer Price Index (CPI) is published monthly on the 15th of each month. Since inception performance is not available due to non-daily reporting of CPI.

¹ As stated in the Fund's prospectus, the expense ratio of 0.48% is expressed as a unitary fee to cover expenses incurred in connection with managing the portfolio. In addition to this expense ratio, the Fund will indirectly bear its proportionate share of the fees and expenses of the underlying ETFs in which it invests. As of September 30, 2009 the Fund estimated that these fees, known as "Acquired Fund Fees and Expenses," would be 0.17% annualized for the fiscal year ending April 30, 2010. However, this amount will vary over time due to changes in the underlying ETF fees and expenses and the constitution of the Index.

² IOPV, or Indicative Optimized Portfolio Value, is a calculation disseminated by the stock exchange that approximates the Fund's NAV every 15 seconds throughout the trading day.

IQ CPI INFLATION HEDGE INDEX

The IQ CPI Inflation Hedged Index is comprised solely of ETFs. The Index does not include hedge funds as components. Returns presented are net of underlying ETF fees, but do not reflect the deduction of management fees, taxes and other expenses. The Consumer Price Index is published by the United States Bureau of Labor Statistics and is a measure of the average change in prices over time of goods and services purchased by households. The Barclays Capital U.S. TIPS Index measures the performance of inflation protected public obligations of the U.S. Treasury, also known as “TIPS”.

The IQ CPI Inflation Hedged Index is the exclusive property of IndexIQ which has contracted with Standard & Poor's ("S&P") to maintain and calculate the Index. S&P shall have no liability for any errors or omissions in calculating the Index.

IndexIQ ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund.