IQ Hedge Event-Driven Beta Index

IndexIQ's IQ Hedge Beta Indexes were launched in March 2007 as the market's first family of hedge fund replication indexes. This suite of indexes serves as the basis for IndexIQ's other hedge fund replication indexes, which themselves underlie IndexIQ's hedge fund replication ETFs and mutual fund.

The IQ Hedge Event-Driven Beta Index attempts to replicate the risk-adjusted return characteristics of the collective hedge funds using an event-driven investment style. Event-driven hedge fund managers typically invest in a combination of credit opportunities, such as high yield, leveraged loans, and capital structure arbitrage, and event-driven equities, such as risk arbitrage, holding company arbitrage, and special situations.

IQ HEDGE EVENT-DRIVEN BETA INDEX

The performance data quoted above represents past performance. Past performance is not a guarantee of future results. Performance may be lower or higher than performance data quoted. Index performance is for illustrative purposes only and does not represent actual Fund performance. One cannot invest directly in an index. Index performance information prior to its publish date of March 31, 2007 is based on a hypothetical back test based on calculations of what would have been the exposure and returns of the Index had it existed at that time, which has inherent limitations. 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.  Results prior to an Index component's existence as an ETF are based on its underlying index, which do not reflect underlying management fees.

The IQ Hedge Event-Driven Beta Index is comprised solely of ETFs. Hypothetical returns presented are net of underlying ETF fees, but do not reflect the deduction of management fees, taxes and other expenses. The Credit Suisse/Tremont Event Driven Index is compiled by Credit Suisse Tremont Index LLC, is comprised solely of hedge funds, and is designed to be representative of the overall composition of the hedge fund universe implementing an event driven strategy. Returns presented are net of underlying manager fees and calculation fees, but do not reflect the deduction of management fees, taxes and other expenses. The HFRX Event Driven Index is compiled by Hedge Fund Research, Inc., is comprised solely of hedge funds, and is designed to be representative of the overall composition of the hedge fund universe implementing an event driven strategy. Returns presented are net of underlying manager fees, but do not reflect the deduction of management fees, taxes and other expenses.

The IQ Hedge Event-Driven Beta 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.