IQ GARP Index

The IQ GARP Index (Growth at a Reasonable Price) borrows principles from both growth and value investing disciplines. A GARP strategy emphasizes picking stocks that have historically demonstrated solid earnings growth, are expected to continue to exhibit strong future growth characteristics, yet are undervalued today. Leveraging IndexIQ's Rules-Based Alpha™ approach, the IQ GARP Index seeks outperformance relative to broad-based benchmarks by employing a sophisticated, multi-factor rules-based methodology to implement a GARP strategy. The use of an objective stock selection process differentiates IQ GARP from the typical subjective approach employed by portfolio managers who utilize a GARP strategy.

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. One cannot invest directly in an index. Index performance information prior to its publication date of December 21 , 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, but it does not reflect management fees, transaction costs or other expenses that you would pay if you invested in a fund directly. The S&P 500 Index is a broad-based unmanaged index of 500 stocks, which is designed to represent the equity market in general (performance data assumes reinvestment of dividends, but it does not reflect management fees, transaction costs or other expenses). The Russell 1000 Growth Index is a measure of the large-cap growth segment of the U.S. equity universe, selecting from the Russell 1000 Index (performance data assumes reinvestment of dividends, but it does not reflect management fees, transaction costs or other expenses). The 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.

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