indexiqinsight-may2013

7/30/2019 IndexIQInsight-May2013

1/21

IQ Insightwww.IndexIQ.com May 2013

Salvatore J. Bruno, Chief Investment Officer

Mutual Fund: Ticker 1 Month 3 Month YTD 1 Year Since Fund

Inception*

Since Index

Inception* 1 Year

Since Fund

Inception*

Since Index

Inception* Incept

IQ Alpha Hedge Strategy Fund IQHIX 6/3

NAV 1.64% 2.53% 2.63% 4.88% 3.18% 2.69% 2.88%

IQHOX

NAV 1.54% 2.43% 2.53% 4.42% 2.84% 2.43% 2.56%

Index - IQHGALPH 1.70% 2.90% 3.16% 6.66% 5.62% 4.09% 4.61% 5.35% 3.84% 10/3

ETFs: Ticker 1 Month 3 Month YTD 1 Year Since Fund

Inception*

Since Index

Inception* 1 Year

Since Fund

Inception*

Since Index

Inception* Incept

IQ Hedge Multi-Strategy Tracker ETF QAI 3/2

Share Price 0.96% 1.68% 2.27% 4.00% 4.41% 2.72% 4.25%

NAV 1.18% 1.86% 1.97% 3.85% 4.39% 2.46% 4.18%

Index- IQHGMST 1.22% 2.09% 2.27% 4.74% 5.06% 3.27% 3.32% 4.85% 3.06% 9/1

IQ Hedge Macro Tracker ETF MCRO 6/9

Share Price 0.64% -0.41% -1.75% 0.50% 3.03% -0.24% 2.93%

NAV 0.49% -0.37% -1.61% 0.36% 3.02% -0.13% 2.95%

Index- IQHGMAT 0.60% -0.11% -1.28% 1.31% 3.67% 4.15% 0.78% 3.59% 4.09% 9/1

IQ He dge Ma rke t Ne utra l Tra cke r ETF QMN 10/

Share Price 1.30% 1.74% 2.55% - 3.22% - 1.90%

NAV 1.30% 1.70% 1.98% - 3.10% - 1.78%

Index- IQHGMN 1.34% 1.81% 2.20% 4.90% 3.50% 4.64% 3.54% 2.13% 4.41% 9/1

IQ Merger Arbitrage ETF MNA 11/1

Share Price -0.70% 1.31% 1.11% -1.62% 0.95% 0.00% 1.19%

NAV -0.35% 1.95% 2.98% -1.42% 1.13% 0.16% 1.26%

Index - IQMNAT -0.35% 2.14% 3.37% 0.09% 2.33% 0.76% 2.13% 2.49% 0.84% 10/3

IQ Real Return ETF CPI 10/2

Share Price 0.19% 0.53% 0.65% 0.90% 1.74% 1.05% 1.73%

NAV 0.23% 0.45% 0.61% 1.09% 1.75% 1.13% 1.73%

Index - IQHGCPIT 0.27% 0.59% 0.76% 1.56% 2.31% 1.49% 1.60% 2.29% 1.46% 12/3

IQ Global Resources ETF GRES 10/2

Share Price -5.47% -6.35% -6.90% -0.87% 4.88% 4.22% 6.74%

NAV -4.49% -5.38% -4.49% -0.35% 5.07% 3.91% 6.62%

Index - IQGREST -4.60% -5.51% -4.53% 0.69% 6.14% 1.60% 5.14% 7.76% 2.51% 10/3

I Q Globa l Agri busine ss S ma ll Ca p ETF CROP 3/2

Share Price -0.57% 0.92% 3.05% 8.44% 2.90% 5.72% 3.31%

NAV -0.49% 1.34% 3.73% 7.91% 3.00% 5.88% 3.37%

Index - IQSMCROT -0.42% 1.60% 4.07% 8.90% 3.34% 10.20% 6.80% 3.69% 10.63% 2/8

IQ Global Oil Small Cap ETF IOIL 5/5

Share Price 0.31% 4.26% 14.09% 11.06% 0.14% 6.98% -0.02%

NAV 0.73% 4.71% 13.28% 12.09% 0.78% 8.81% 0.43%

Index - IQSMOILT 0.84% 5.12% 13.91% 13.41% 1.79% -1.37% 10.00% 1.42% -1.84% 4/1

IQ US Real Estate Small Cap ETF ROOF 6/1

Share Price 2.89% 12.10% 21.68% 39.64% 22.08% 38.22% 21.26%

NAV 3.05% 12.10% 21.56% 39.85% 23.29% 38.29% 22.42%

Index - IQSMREST 3.12% 12.39% 22.04% 41.18% 24.38% 21. 41% 39. 57% 23.50% 20.42% 6/ 6

IQ Canada Small Cap ETF CNDA 3/2

Share Price -5.95% -9.83% -8.51% -15.56% -3.23% -11.78% -1.34%

NAV -5.71% -9.67% -8.34% -15.49% -3.04% -11.62% -1.22%

Index - IQSMCANT -5.71% -9.45% -8. 05% -14.51% -2.18% 2.22% -10. 64% -0. 32% 4.21% 2/ 8

IQ Australia Small Cap ETF KROO 3/2

Share Price -5.07% -5.07% -1.85% -7.15% -0.25% -2.78% 1.47%

NAV -4.39% -3.96% 0.33% -6.51% -0.03% -2.64% 1.46%

Index - IQSMAUST -4.41% -3.86% 0.48% -5.82% 0.75% 5.23% -1.85% 2.28% 6.89% 2/8

As of April 30, 2013 As of March 31, 2013

Performance greater than 1 year is annualized. There are risks associated with investing including possible loss of principal. The performance data

oted above represents past performance, which is not a guarantee of future results. Investment return and value of the Funds shares will fluctuatethat an investors shares, when sold, may be worth more or less than their original cost. Current performance may be loweror higher thanrformance data quoted. Fund returns reflect dividends and capital gains distributions. Fund performance current to the most recent month-end isailable by calling 1-888-934-0777 or by visitingwww.indexiq.com.

Performance Snapshot
http://www.indexiq.com/http://www.indexiq.com/http://www.indexiq.com/http://www.indexiq.com/http://www.indexiq.com/http://www.indexiq.com/http://www.indexiq.com/http://www.indexiq.com/http://www.indexiq.com/


2/21

Page 2

Table of ContentsSection Page

I. Executive Summary 3

II. Key Economic Data and Market Developments 3

III. Asset Class Performance 3

o Table 1: Asset Class Performance 4

IV. IQ Absolute Return indices 4

o Table 2: IndexIQ Absolute Return indices Performance 4

o Chart 1: IndexIQ Absolute Return indices Cumulative Performance 4

o Chart 2: IQ Alpha Hedge Index Monthly Strategy Allocations 5

o Table 3: IQ Alpha Hedge Index Asset Allocation 5

o Chart 3: IQ Alpha Hedge Index Performance 6

o Chart 4: IQ Hedge Multi-Strategy Index Monthly Strategy Allocations 6

o Table 4: IQ Hedge Multi Strategy Index Asset Allocation 7

o Chart 5: IQ Hedge Multi Strategy Index Performance 8

o Table 5: IQ Hedge Macro Index Asset Allocation 9

o Chart 6: IQ Hedge Macro Index Performance 9

o Table 6: IQ Hedge Market Neutral Index Asset Allocation 10

o Chart 7: IQ Hedge Market Neutral Index Performance 10

o Table 7a: Additions to the IQ Merger Arbitrage Index 11

o Table 7b: Deletions from the IQ Merger Arbitrage Index 11

o Chart 8: IQ Merger Arbitrage Index Performance 11

o Chart 9: IQ Real Return Index Asset Allocation 12

o Chart 10: IQ Real Return Index Performance 12

V. IQ Real Asset indices 13

o Table 8: IndexIQ Real Asset indices Performance 13

o Chart 11: IndexIQ Real Asset indices Cumulative Performances 13

o Chart 12: IQ Global Resources Index Monthly Allocation 14

o Chart 13: IQ Global Resources Index Performance 14

o Table 9: Sector Weights, Returns, and Contributions: IQ Agribusiness Small Cap Index 15

o Table 10: Sector Weights, Returns, and Contributions : IQ Global Oil Small Cap Index 15

o Table 11: Sector Weights, Returns, and Contributions : IQ U.S. Real Estate Small Cap Index 15

o Chart 14: Valuation Chart: Real Asset indices 16

o Chart 15: Performance: Real Asset indices 16

VI. IQ International indices 17

o Table 12: IndexIQ International indices Performance 17

o Chart 16: Index IQ International indices Cumulative Performance 17

o Table 13: IQ Australia Small Cap Index & IQ Canada Small Cap Index 18

o Chart 17: Valuation Chart: International indices 18

o Chart 18: Performance: International indices 19

About IndexIQ 20


3/21

Page 3

I. Executive Summary:Our thoughts and prayers go out to those affected by the Boston Marathon tragedy. Also, our gratitude goes out to the first responders

and law enforcement personnel that performed so admirably.

U.S. Equity markets continued to power ahead although it was far from a smooth ride. They got caught up in a mid-month global asset

sell off that was triggered by reports of Cypress liquidating gold holdings as well as China first quarter GDP coming in below

expectations. International markets moved higher as did emerging markets.

Macro economic data was a bit disappointing as job creation slowed in March. First quarter GDP was positive at 2.5% but was below

he consensus estimate of 3.0%. The big bright spot was housing as the housing starts topped 1MM and there was a continued

resurgence in home prices. The Case-Schiller Index is up 9.3% for the 12 months ending February, 2013. Headline inflation moderated

as energy prices receded and the consumer confidence index recovered from the prior months drop.

The yield curve flattened as the yield on the 10 year U.S. Treasury Bond dropped back to 1.68% on economic growth concerns.

Commodities, broadly, were negative as gold prices suffered their worst drop in over 30 years. Copper, aluminum, silver and oil were

also off but natural gas was the lone bright spot continuing its strong price recovery.

Hedge funds posted mostly positive returns as the broad index was up for the month. The absolute return strategies, broadly, were

positive as were the directional strategies. All of the strategies had positive returns. Convertible Arbitrage led the way rising by over

2% for the month. Event Driven strategies including Merger Arbitrage and Distressed Securities were up nearly 1% each. The

remaining strategies all returned near 0.50% for the month.

II. Key Economic Data and Market Developments: The U.S. Bureau of Economic Analysis (BEA) announced that the advanced estimate of real gross domestic product (GDP)

grew by a 2.5% annual rate in the first quarter of 2013 from the fourth quarter of 2012. Real GDP grew by 0.4% in the fourth

quarter of 2012, 3.1% in the third quarter, 1.3% in the second quarter and 2.0% in the first quarter.

Headline inflation dropped as the U.S. Consumer Price Index for All Urban Consumers seasonally adjusted (CPI-U SA) fell by-0.2% in March. This decrease was largely driven by moderating gasoline prices. Core inflation (CPI-Ex Food and Energy)

was up a modest 0.1% after rising by 0.2% in February. For the 12 months ending March 2013, the CPI-U NSA was up by

1.50% while the CPI-Ex Food and Energy rose by 1.9%.

The U.S. Bureau of Labor Statistics (U.S. BLS) announced that non-farm jobs increased by 88,000 in February after adding arevised 268,000 jobs in February. Private sector payroll employment added 95,000 jobs following a revised increase of

254,000 jobs in February. The unemployment rate dropped to 7.6%.

The U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau issued a joint release that salesof new single-family houses were at a seasonally adjusted annual rate (SAAR) of 417,000, up 1.5%. Existing home sales were

down -0.6% to 4.92 million units. Separately, the U.S. Department of Commerce announced that housing starts were at a

seasonally adjusted annual rate (SAAR) of 1.04MM, up 7.0%. Building permits were down -3.9% to a SAAR of 902,000.

The Case-Schiller Home Price Index rose by 1.2% in February and was up 9.3% for the 12 months ending February, 2013. The Conference Board Consumer Confidence Index TM rose to 68.1 from a revised 61.9.

III. Asset Class Performance: 1 U.S. large cap equities (SPY) were up by 1.92% with small caps (IWM) falling by -0.35%. Developed international markets

were up (EFA: 5.02%) as were emerging markets (VWO: 2.02%).

Commodities (DJP: -2.83%) broadly were down. Oil futures (Bloomberg: CL1 ) fell by -3.88% but natural gasfutures (Bloomberg: NG1 ) were up by 7.27%. Within precious metals, gold (Bloomberg: GOLDS

) fell by -7.93% and silver (Bloomberg: SILV ) fell by -15.04%. Industrial metals futures were

down as Copper futures (Bloomberg: LMCAHDY ) lost -6.50% and Aluminum futures (Bloomberg: LMAHDY

) fell by -2.29%.

The Euro gained ground vs. the U.S. Dollar (FXE: 2.71%) but the Yen lost ground (FXY: -3.45%). Broad based bonds (BND: 1.02%) were up. Longer duration U.S. government bonds (IEF) gained 1.52%. Shorter duration

bonds (SHV: 0.02%) were flat. High yield bonds (HYG: 2.12%) were up as were investment grade corporate bonds (CFT:

1.87%).

Real Estate internationally was up (RWX: 7.21%) as were U.S. REITS (RWR: 6.78%). The performance of the major asset class ETFs1 is detailed in Table 1.1 ETFs are used as proxies for the applicable asset classes.


4/21

Page 4

Table 1: Asset Class Performance

Through 4/30/2013

SPDR S&P

500 ETF

iShares MSCI

EAFE Index

Fund

Vanguard

FTSE

Emerging

Markets ETF

iShares Russell

2000 Index

Fund

Vanguard Total

Bond Market

ETF

iShares

Barclays Credit

Bond Fund

iShares iBoxx

$ High Yield

Corporate

Bond Fund

iShares

Barclays Short

Treasury Bond

Fund

iShares

Barclays 7-10

Year Treasury

Bond Fund

Barclays iPath

DJ UBS

Commodity TR

ETN

SPDR Dow

Jones REIT

ETF

Pow

DB U

Bull

1 Month 1.92% 5.02% 2.02% -0.35% 1.02% 1.87% 2.12% 0.02% 1.52% -2.83% 6.78% -

3 Months 7.14% 5.02% -1.66% 5.34% 1.64% 2.70% 3.97% 0.02% 2.97% -6.69% 10.42% 2

YTD 12.63% 8.93% -1.59% 11.92% 0.94% 1.90% 4.32% -0.01% 1.64% -4.55% 14.20% 1

Last 12 Months 16.70% 19.27% 5.33% 17.86% 3.54% 7.20% 12.25% 0.06% 4.70% -6.29% 17.05% 1

Past performance is not a guarantee of future results.

IV. IQ Absolute Return indicesThe performance of the IndexIQ Absolute Return indices is detailed in Table 2.

Table 2: IndexIQ Absolute Return indices Performance

Through 4/30/2013

IQ Alpha

Hedge

Index

IQ Hedge

Multi-

Strategy

Index

IQ Hedge

Macro

Index

IQ Hedge

SMA Index

IQ Hedge

Market

Neutral

Index

IQ Merger

Arbitrage

Index

IQ Real

Return

Index S&P 500

Barclays

US

Aggregate

H

G

I

1 Month 1.70% 1.22% 0.60% 1.31% 1.34% -0.35% 0.27% 1.93% 1.01% 0

3 Months 2.90% 2.09% -0.11% 2.20% 1.81% 2.14% 0.59% 7.19% 1.60% 1

YTD 3.16% 2.27% -1.28% 2.60% 2.20% 3.37% 0.76% 12.74% 0.89% 3

Last 12 Months 6.66% 4.74% 1.31% 4.72% 4.90% 0.09% 1.56% 16.89% 3.68% 4


The cumulative index performance for the prior month for the IndexIQ Absolute Return indices is displayed in Chart 1.

Chart 1: IndexIQ Absolute Return indices Cumulative Performance

Cumulative Performance - April 2013

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

03/28/20

13

04/1/201

3

04/2/201

3

04/3/201

3

04/4/201

3

04/5/201

3

04/8/201

3

04/9/201

3

04/10/20

13

04/11/20

13

04/12/20

13

04/15/20

13

04/16/20

13

04/17/

2013

04/18/20

13

04/19/20

13

04/22/20

13

04/23/20

13

04/24/20

13

04/25/20

13

04/26/20

13

04/29/20

13

04/30/20

13

IQ Alpha Hedge Index IQ Hedge Multi-Strategy Index IQ Hedge Macro IndexIQ Hedge Market Neutral Index IQ Merger Arbitrage Index IQ Real Return IndexS&P 500 Barclays US Aggregate HFRX Global Index

CumlativeReturn

Data as of April 30, 2013. Source: Factset, Bloomberg, IndexIQ research. Past performance is not a guarantee of future results.

IQ Alpha Hedge Index (IQHGALPH)Allocation

The IQ Hedge Emerging Markets Beta Index allocation remained at its maximum short position of -16.67%. The short allocation to the IQ Hedge Global Macro Beta Index was reduced by 2.78% to -13.89%. The IQ Hedge Market Neutral Beta Index allocation was reduced by 2.78% to 30.56%. The IQ Hedge Fixed Income Arbitrage Beta Index, the IQ Hedge Long/Short Equity Beta Index, and the IQ Hedge Event-Driven

Beta Index each remained at their maximum long weights of 33.33%.

Strategy allocations are contained in Chart 2.


5/21

Page 5

Chart 2: IQ Alpha Hedge Index Monthly Strategy Allocations

-20%-10%

0%10%

20%30%40%

IQ HedgeEmerging

Markets Beta

Index

IQ HedgeLong/Short Beta

Index

IQ Hedge MarketNeutral Beta

Index

IQ Hedge Event-Driven Beta Index

IQ Hedge FixedIncome Arbitrage

Beta Index

IQ Hedge GlobalMacro Beta Index

Allocations for the month of:

Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13

%

AllocationtotheIQBetaIndices

The asset allocation is in Table 3.Table 3: IQ Alpha Hedge Index Asset Allocation

Asset Class Group Apr-13 May-13 Change

Bonds 96.46% 94.02% -2.44%Investment Grade Corporate Bond 17.05% 8.97% -8.07%

High Yield Corporate Bond 0.46% 1.89% 1.43%

Convertible Bonds 11.12% 11.35% 0.23%

Floating Rate 2.64% 5.04% 2.39%

U.S. Short Term Treasury Bond 17.72% 13.02% -4.70%

Aggregate Bond 39.29% 39.50% 0.21%

International Bond 2.47% 2.66% 0.19%

Treasury Inflation Protected Securities 5.71% 11.60% 5.89%

Commodities 0.78% 1.14% 0.37%

Broad 3.04% 2.76% -0.28%

Gold -2.38% -1.71% 0.67%

Silver 0.12% 0.09% -0.03%

Currencies -4.38% -4.23% 0.15%

Canadian Dollar 0.00% 0.00% 0.00%

Euro -3.85% -4.88% -1.03%

Emerging Markets 0.71% 1.98% 1.27%

Japanese Yen -1.24% -1.32% -0.08%

Currency Strategy -2.67% -3.36% -0.70%

Equity 42.38% 45.75% 3.36%

U.S. Small Cap Equity 7.37% 7.10% -0.26%

U.S. Large Cap Equity 16.02% 20.60% 4.59%

International Equity 14.87% 14.92% 0.05%

International Small Cap Equity 0.00% 0.00% 0.00%

Emerging Equity 4.13% 3.12% -1.01%

Emerging Small Cap Equity 0.00% 0.00% 0.00%Real Estate -6.80% -7.48% -0.68%

U.S. REITS -6.88% -7.40% -0.52%

International REITS 0.08% -0.08% -0.16%

Volatility -0.77% -0.84% -0.06%

Total 125.00% 125.00% 0.00%

Performance

The weights and contribution to the prior months performance by asset type is in Chart 3.


6/21

Page 6

Chart 3: IQ Alpha Hedge Index Performance

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

Total

InternationalEquity

AggregateBond

U.S.LargeCapEquity

InvestmentGrade

CorporateBond

Gold

ConvertibleBonds

InternationalBond

MediumTerm

Volatility

U.S.ShortTerm

TreasuryBond

Yen

FloatingRate

InternationalREITS

TreasuryInflation

ProtectedSecurities

EmergingMarkets

HighYieldCorporate

Bond

CanadianDollar

G10CurrencyHarvest

EmergingEquity

Silver

U.S.SmallCapEquity

Euro

BroadCommodity

U.S.REITS

-10%

0%

10%

20%

30%

40%

50%

Contribution to Total Return (LHS) Avg Weight (RHS)

ContributiontoTotalReturn

AvgWeig

ht

IQ Hedge Multi-Strategy Index (IQHGMS)Allocation

The IQ Hedge Emerging Markets Beta Index allocation remained at its maximum short position of -16.67%. The short allocation to the IQ Hedge Global Macro Beta Index was reduced by 2.78% to -13.89%. The IQ Hedge Market Neutral Beta Index allocation was reduced by 2.78% to 30.56%. The IQ Hedge Fixed Income Arbitrage Beta Index, the IQ Hedge Long/Short Equity Beta Index, and the IQ Hedge Event-Driven

Beta Index each remained at their maximum long weights of 33.33%.

Strategy allocations are contained in Chart 4.Chart 4: IQ Hedge Multi-Strategy Index Monthly Strategy Allocations

-20%

-10%

0%

10%

20%

30%

40%

IQ Hedge

Emerging

Markets Beta

Index

IQ Hedge

Long/Short Beta

Index

IQ Hedge

Market Neutral

Beta Index

IQ Hedge

Event-Driven

Beta Index

IQ Hedge Fixed

Income

Arbitrage Beta

Index

IQ Hedge

Global Macro

Beta Index


Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13

%

AllocationtotheIQBetaIndices

The asset allocation is in Table 4.


7/21

Page 7

Table 4: IQ Hedge Multi Strategy Index Asset Allocation

Asset Class Group Apr-13 May-13 Change

Bonds 63.56% 60.89% -2.67%

Investment Grade Corporate Bond 11.28% 5.84% -5.44%



Floating Rate 1.75% 3.28% 1.53%


Aggregate Bond 26.01% 25.72% -0.29%



Commodities 2.00% 1.76% -0.24%

Broad 1.92% 1.70% -0.22%

Gold 0.00% 0.00% 0.00%

Silver 0.08% 0.06% -0.02%

Commodities (Short) 0.75% 0.53% -0.23%

Broad (Short) 0.00% 0.00% 0.00%

Gold (Short) 0.75% 0.53% -0.23%

Silver (Short) 0.00% 0.00% 0.00%

Currencies 0.47% 1.29% 0.82%


Euro 0.00% 0.00% 0.00%

Emerging Markets 0.47% 1.29% 0.82%Japanese Yen 0.00% 0.00% 0.00%

Currencies (Short) 1.61% 1.92% 0.31%

Euro (Short) 1.22% 1.51% 0.29%

Japanese Yen (Short) 0.39% 0.41% 0.02%

Currency Strategy 0.84% 1.04% 0.20%

Equity 28.06% 29.79% 1.73%



International Equity 9.85% 9.72% -0.13%


Emerging Equity 2.73% 2.03% -0.70%

Emerging Small Cap Equity 0.00% 0.00% 0.00%Equity (Short) 0.00% 0.00% 0.00%

U.S. Small Cap Equity (Short) 0.00% 0.00% 0.00%

U.S. Large Cap Equity (Short) 0.00% 0.00% 0.00%

International Equity (Short) 0.00% 0.00% 0.00%

Emerging Equity (Short) 0.00% 0.00% 0.00%

Real Estate 0.05% 0.00% -0.05%

U.S. REITS 0.00% 0.00% 0.00%

International REITS 0.05% 0.00% -0.05%

Real Estate (Short) 2.17% 2.28% 0.11%

U.S. REITs (Short) 2.17% 2.28% 0.11%

Volatility 0.00% 0.00% 0.00%

Volatility (Short) 0.49% 0.52% 0.03%

Total 100.00% 100.00% 0.00%


8/21

Page 8

Performance

The weights and contribution to the prior months performance by asset type is in Chart 5. Chart 5: IQ Hedge Multi Strategy Index Performance

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

Total

InternationalEquity

AggregateBond

U.S.LargeCap

Equity

I

nvestmentGrade

CorporateBond

ConvertibleBonds

Gold(Short)

In

ternationalBond

M

ediumTermVol

(Short)

U.S.ShortTerm

TreasuryBond

Yen(Short)

FloatingRate

InternationalREITS

TreasuryInflation

Pro

tectedSecurities

E

mergingMarkets

HighYield

CorporateBond

G10Currency

Harvest

EmergingEquity

Silver

U.S.SmallCap

Equity

Euro(Short)

B

roadCommodity

RealEstate(Short)

-5

0

5

1

1

2

2

3


ContributiontoTotal

Return

IQ Hedge Macro Index (IQHGMA)Allocation

The allocation to the IQ Hedge Global Macro Beta Index remained at 25%, the minimum allocation allowed by index rules.Conversely, the IQ Hedge Emerging Markets Beta Index allocation remained at 75%, the maximum allocation allowed by

index rules.

The asset allocation is in Table 5.


9/21

Page 9

Table 5: IQ Hedge Macro Index Asset AllocationAsset Class Group Apr-13 May-13 Change

Bonds 66.86% 66.73% -0.13%

Investment Grade Corporate Bond 16.13% 14.61% -1.52%



Floating Rate 0.00% 0.00% 0.00%


Aggregate Bond 0.00% 0.00% 0.00%



Commodities 5.69% 4.34% -1.35%

Broad 2.91% 2.08% -0.83%

Gold 2.78% 2.26% -0.52%Silver 0.00% 0.00% 0.00%

Commodities (Short) 0.06% 0.05% -0.01%

Broad (Short) 0.00% 0.00% 0.00%

Gold (Short) 0.00% 0.00% 0.00%

Silver (Short) 0.06% 0.05% -0.01%

Currencies 6.46% 7.57% 1.10%


Euro 5.27% 6.17% 0.90%


Japanese Yen 1.20% 1.40% 0.20%

Currencies (Short) 0.00% 0.00% 0.00%

Euro (Short) 0.00% 0.00% 0.00%


Currency Strategy 3.07% 2.81% -0.27%

Equity 16.96% 17.11% 0.16%


U.S. Large Cap Equity 0.00% 0.00% 0.00%International Equity 0.00% 0.00% 0.00%


Emerging Equity 2.95% 3.69% 0.74%

Emerging Small Cap Equity 7.28% 6.90% -0.38%

Equity (Short) 0.00% 0.00% 0.00%




Emerging Equity (Short) 0.00% 0.00% 0.00%

Real Estate 0.00% 0.28% 0.28%

U.S. REITS 0.00% 0.00% 0.00%

International REITS 0.00% 0.28% 0.28%


U.S. REITs (Short) 0.00% 0.00% 0.00%

Volatility 0.90% 1.11% 0.21%


Total 100.00% 100.00% 0.00%

Performance

The weights and contribution to the prior months performance by asset type is in Chart 6.hart 6: IQ Hedge Macro Index Performance

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

Total

InternationalBond

InvestmentGrade

CorporateBond

EmergingSmallCap

Equity

Euro

U.S.ShortTerm

TreasuryBond

G10Currency

Harvest

Silver(Short)

CanadianDollar

Yen

MediumTerm

Volatility

BroadCommodity

U.S.SmallCap

Equity G

old

EmergingEquity

-10%

0%

10%

20%

30%

40%


Contributionto

TotalReturn

vg

egt


10/21

Page 10

IQ Hedge Market Neutral Index (IQHGMN)Allocation

The allocation to the IQ Hedge Market Neutral Beta Index remained at 75%. Conversely, the IQ Hedge Fixed IncomeArbitrage Beta Index allocation remained at 25%.

The asset allocation is in Table 6.able 6: IQ Hedge Market Neutral Index Asset AllocationAsset Class Group Apr-13 May-13 Change

Bonds 76.70% 78.28% 1.58%

Investment Grade Corporate Bond 0.00% 0.00% 0.00%


Convertible Bonds 6.13% 5.99% -0.14%Floating Rate 0.00% 0.00% 0.00%


Aggregate Bond 15.71% 14.90% -0.81%



Commodities 0.00% 0.00% 0.00%

Broad 0.00% 0.00% 0.00%

Gold 0.00% 0.00% 0.00%

Silver 0.00% 0.00% 0.00%

Commodities (Short) 0.00% 0.00% 0.00%

Broad (Short) 0.00% 0.00% 0.00%

Gold (Short) 0.00% 0.00% 0.00%

Silver (Short) 0.00% 0.00% 0.00%

Currencies 0.00% 0.00% 0.00%


Euro 0.00% 0.00% 0.00%


Japanese Yen 0.00% 0.00% 0.00%Currencies (Short) 0.21% 0.34% 0.12%

Euro (Short) 0.21% 0.34% 0.12%


Currency Strategy 0.27% 0.18% -0.09%

Equity 20.71% 19.22% -1.48%



International Equity 19.81% 18.85% -0.97%


Emerging Equity 0.00% 0.00% 0.00%

Emerging Small Cap Equity 0.00% 0.00% 0.00%

Equity (Short) 2.11% 1.98% -0.13%




Emerging Equity (Short) 2.11% 1.98% -0.13%

Real Estate 0.00% 0.00% 0.00%

U.S. REITS 0.00% 0.00% 0.00%International REITS 0.00% 0.00% 0.00%


U.S. REITs (Short) 0.00% 0.00% 0.00%

Volatility 0.00% 0.00% 0.00%


Total 100.00% 100.00% 0.00% Performance

The weights and contribution to the prior months performance by asset type is in Chart 7. hart 7: IQ Hedge Market Neutral Index Performance

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

Total

InternationalEquity

AggregateBond

ConvertibleBonds

U.S.ShortTerm

TreasuryBond

U.S.SmallCap

Equity(Short)

TreasuryInflation

ProtectedSecurities

U.S.SmallCap

Equity

HighYield

CorporateBond

G10Currency

Harvest

Euro(Short)

EmergingEquity

(Short)

-10%

0%

10%

20%

30%

40%

50%


ContributiontoTotalRe

turn

AvgWeight


11/21

Page 11

IQ Merger Arbitrage Index (IQMNA)Allocation

The hedge ratio based on the mix of stock and cash in the deals and the weight of the stocks in the index is 20.93%, down from25.75% last month.

The weighted average premium embedded in the index is 0.86%. Last month the premium was 1.50%. The 11 companies added to the index in the latest rebalance are listed in Table 7a. The 12 companies deleted from the index

since the prior months rebalance date are listed in Table 7b.

Table 7a: Additions to the IQ Merger Arbitrage IndexTarget Acquirer Target Target Announce Added

Name Name Sector Country Date Date

Buckeye Technologies Inc. Koch Industries, Inc. Basic Materials United States 04/24/2013 05/03/2013Conceptus Inc. Bayer AG Health Care United States 04/29/2013 05/03/2013

D.E MASTER BLENDERS 1753 N.V. Joh. A. Benckiser GmbH Consumer Staples Netherlands 03/28/2013 05/03/2013

Elan Corporation PLC Royalty Pharma, Inc. Health Care Ireland 02/25/2013 05/03/2013

Life Technologies Corp. Thermo Fisher Scientific, Inc. Health Care United States 04/15/2013 05/03/2013

Lufkin Industries Inc. General Electric Co. Energy United States 04/08/2013 05/03/2013

Megane Top Co. Ltd. Tomizawa KK (Shizuoka) Consumer Cyclicals Japan 04/15/2013 05/03/2013

MPG Office Trust Inc. Brookfield Office Properties, Inc. Financials United States 04/25/2013 05/03/2013

National Financial Partners Corp. Madison Dearborn Partners LLC Financials United States 04/15/2013 05/03/2013

Power-One Inc. ABB Ltd. Capital Goods United States 04/22/2013 05/03/2013

Softchoice Corp. Birch Hill Equity Partners Management, Technology Canada 04/22/2013 05/03/2013

Table 7b: Deletions from the IQ Merger Arbitrage IndexTarget Acquirer Announce Added Deal

Name Name Sector Country Date Date Result

Primaris Retail Real Estate Investment Trust Primaris Retail Real Estate Investment Financials Canada 12/05/2012 02/05/2013 Completed

Duff & Phelps Corp. Cl A Duff & Phelps Corp. /Private Group/ Financials United States 12/30/2012 02/05/2013 Completed

SeaCube Container Leasing Ltd. Ontario Teachers' Pension Plan Board Financials United States 01/18/2013 02/05/2013 Completed

Obagi Medical Products Inc. Valeant Pharmaceuticals International, I Health Care United States 03/20/2013 04/03/2013 Completed

Alterra Capital Holdings Ltd. Markel Corp. Financials Bermuda 12/19/2012 01/04/2013 Completed

Copano Energy L.L.C. Kinder Morgan Energy Partners LP Utilities United States 01/29/2013 02/05/2013 Completed

American Greetings Corp. Cl A American Greetings Corp. /Private Gro Consumer Staples United States 09/26/2012 10/03/2012 Max Age

Cymer Inc. ASML Holding NV Technology United States 10/17/2012 12/05/2012 Max Age

EnergySolutions Inc. ABB Ltd. Capital Goods United States 01/07/2013 02/05/2013 Scenario

H.J. Heinz Co. Berkshire Hathaway, Inc. Consumer Staples United States 02/14/2013 03/05/2013 Completed

Impregilo Spab Salini Costruttori SpA Capital Goods Italy 02/06/2013 03/05/2013 Completed

Kayak Software Corp. Cl A Priceline.com, Inc. Technology United States 11/08/2012 01/04/2013 Min Wt Performance Discussion

Performance was mixed across the sectors. In the communications sector, Sprint added 64bps while Clearwire added 10 bps. Inconsumer staples, GrainCorp added 35 bps. In technology, Dell detracted 48 bps. In the energy sector, Plains Exploration

detracted 41bps.

The equity hedge was negative in terms of performance impact. The weights and contribution to the prior monthsperformance by sector is in Chart 8.Chart 8: IQ Merger Arbitrage Index Performance

-1.00%

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

Total

Communication

Services

ConsumerStaples

CapitalGoods

ConsumerCyclicals

Transportation

Utilities

Financials

HealthCare

Energy

Technology

Miscellaneous

-10%

-5%

0%

5%

10%

15%

20%



vg

egt

Note: Miscellaneous includes the equity hedge as well as any cash and cash equivalents.


12/21

Page 12

Q Real Return Index (IQHGCPI)

Allocation

The index allocation to medium term bonds remained at 7.5%. The allocation to long term bonds also remained at 2.5%, its maximum allowed by index rules. The sum of the medium term

and long term bond allocations is at the index maximum of 10%.

The allocation to short term bonds stayed at 60%, its lowest amount since index inception. The total equity position also was unchanged at 10%. The gold position and real estate positions remained at their maximum allowed weights of 10% each. The asset allocation is in Chart 9.

Chart 9: IQ Real Return Index Asset Allocation

0%

10%

20%

30%

40%

50%

60%

70%

80%

Equity Short Term

Bonds

Med Term

Bonds

Long Term

Bonds

Currency Real Estate Gold Oil


Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13

Performance Discussion

The weights and contribution to the prior months performance by asset type is in Chart 10. Chart 10: IQ Real Return Index Performance

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Total

RealEstate

Equity

LTBond

MTBond

STBond

Gold

-10%

0%

10%

20%

30%

40%

50%

60%

70%



v

e

t


13/21

Page 13

V. IQ Real Asset IndicesThe performance of the IndexIQ Real Asset indices is detailed in Table 8.

Table 8: IndexIQ Real Asset indices Performance

Through 4/30/2013

IQ Global

Resources

Index

IQ Global

Agribusiness

Small Cap

Index

IQ Global Oil

Small Cap

Index

IQ US Real

Estate Small

Cap Index

1 Month -4.60% -0.42% 0.84% 3.12%

3 Months -5.51% 1.60% 5.12% 12.39%

YTD -4.53% 4.07% 13.63% 22.04%

Last 12 Months 0.69% 8.90% 13.41% 41.18%


The cumulative index performance for the prior month for the IndexIQ Real Asset indices is displayed in Chart 11.

Chart 11: IndexIQ Real Asset indices Cumulative Performance

Cumulative Performance - April 2013

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

03/28/20

13

04/01/20

13

04/02/20

13

04/03/20

13

04/0

4/20

13

04/05/20

13

04/08/20

13

04/09/20

13

04/10/20

13

04/11/20

13

04/12/20

13

04/15/20

13

04/1

6/20

13

04/17/20

13

04/18/20

13

04/19/20

13

04/22/20

13

04/23/20

13

04/2

4/20

13

04/25/20

13

04/2

6/20

13

04/29/20

13

04/30/20

13

IQ Global Resources Index IQ Oil Small Cap Index IQ Agribusiness Small Cap Index IQ Real Estate Small Cap Index MSCI World

CumlativeReturn


IQ Global Resources Index (IQGRES)Allocation

The allocation to the Timber sector was increased for this month based on improved momentum and valuation (Price/BookValue & Price/Sales).2 The allocation to Water decreased based on a less attractive relative Price/Sales ratio. Each of the other

sectors had modest increases in their allocations.

Precious Metals, Energy, Industrial Metals and Timber are the most overweight sectors. Water, Coal, Grains, Food and Fiber, and Livestock are the most underweight sectors. The sector allocation is in Chart 12.2 As a percentage of equity.


14/21

Page 14

Chart 12: IQ Global Resources Index Monthly Allocation

0%

5%

10%

15%

20%

25%

Energy GFF Livestock Industrial Metals Precious Metals Timber Water Coal

Allocations as of:

11/30/2012 12/31/2012 1/31/2013 2/28/2013 3/31/2013 4/30/2013

%SectorA

llocation

Performance Discussion:

The Precious Metals sector was hit very hard in the month and drove the majority of the negative performance. IndustrialMetals were also a large contributor to negative returns.

Water and Energy sector contributed positively to performance. 5 out of 8 sectors had negative returns. Both the domestic hedge and the international hedges had negative contributions to returns. The weights and contribution to theprior months performance by sector is in Chart 13.

Chart 13: IQ Global Resources Index Performance

-5.00%

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

Total

Water

Energy

Livestock

Coal

Inverse

Domestic

Timber

IndustrialMetals

GrainsF

oodFiber

InverseInternational

Precio

usMetals

-5

-4

-3

-2

-1

0

1

2

3




15/21

Page 15

IQ Global Agribusiness Small Cap Index (IQSMAGR) Table 9 details the sector allocations, returns and contributions as of April 30, 2013.

Table 9: Sector Weights, Returns, and Contributions

Sector Avg Wt Return Contribution

Agricultural Chemicals 19.36 -3.19 -0.64

Agricultural Supplies and Logistics 14.29 4.75 0.68

Biofuels 4.41 -4.08 -0.19

Crop Production and Farming 37.50 0.85 0.34

Livestock Operations 24.44 -1.83 -0.46

Total 100.00 -0.28 -0.28

IQ Global Agribusiness Small Cap Index

IQ Global Oil Small Cap Index (IQSMOIL) Table 10 details the sector allocations, returns and contributions as of April 30, 2013



Equipment, Services & Drilling 34.06 4.64 1.71

Exploration & Production 35.11 -3.62 -1.43

Refining & Marketing 30.83 1.93 0.56

Total 100.00 0.84 0.84

IQ Global Oil Small Cap Index

IQ U.S. Real Estate Small Cap Index (IQSMRES) Table 11 details the sector allocations, returns and contributions as of April 30, 2013.



Diversified REIT 8.22 0.61 0.05

Hotel REIT 11.41 1.93 0.21

Mortgage REIT 28.70 1.16 0.32

Office REIT 19.44 3.94 0.77

Residential REIT 4.08 0.51 0.02Retail REIT 14.07 7.19 1.01

Specialized REIT 14.08 5.26 0.75

Total 100.00 3.12 3.12

IQ U.S. Real Estate Small Cap Index


16/21

Page 16

Chart 14 contains selected characteristics for the Real Asset indices.

Chart 14: Valuation Chart: Real Asset indices

16.18

$34.57

2.49 2.47

16.35

$2.11 1.92 2.20

11.08

$1.50

5.41

1.79

16.20

$3.41

1.54

5.53

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

Trailing P/E (excl neg EPS) Wtd Average Mkt Cap ($BB) Yield* P/BV

IQ Global Resources Index IQ Global Agribusiness Small Cap Index IQ US Real Estate Small Cap Index IQ Global Oil Small Cap Index

* Yield represents the estimated yield based on current index components and the prior payout history of the components. The actual index yield may be different.

Data as of April 30, 2013. Source: Factset and IndexIQ research.

Chart 15 contains the last 12 months and year-to-date returns for the Real Asset indices and their respective comparison indices (as

detailed in the chart footnotes)

Chart 15: Performance: Real Asset indices

0.7%

8.9%

41.2%

13.4%

-5.4%

8.4%

15.1%

-10.9%

-4.5%

4.1%

22.0%

13.6%

-3.9%

6.1%

13.4%

1.8%

-20.00% -10.00% 0.00% 10.00% 20.00% 30.00% 40.00%

IQ Global Resources Index (1)

IQ Global Agribusiness Small Cap Index (2)

IQ US Real Estate Small Cap Index (3)

IQ Global Oil Small Cap Index (4)

IQ Index-Last 12 Months Comparative Index-Last 12 Months

IQ Index-YTD Comparative Index-YTD

(1) DJUBS Total Return Index (2) DAX Global Agribusiness Index (3) DJ US Real Estate Index (4) WTI Spot Oil

Last 12 Months

YTD

Last 12 Months

YTD

Last 12 Months

YTD

Last 12 Months

YTD

Data as of April 30, 2013. Source: Factset and IndexIQ research. Past performance is not a guarantee of future results.


17/21

Page 17

VI. IQ International IndicesThe performance of the IndexIQ International indices is detailed in Table 12.

Table 12: IndexIQ International indices Performance

Through 4/30/2013

IQ Australia

Small Cap Index

IQ Canada Small

Cap Index

MSCI AC

World

1 Month -4.41% -5.72% 2.95%

3 Months -3.86% -9.45% 4.89%

YTD 0.48% -8.05% 9.75%

Last 12 Months -5.82% -14.51% 15.69%


The cumulative index performance for the prior month for the IndexIQ International indices is displayed in Chart 16.

Chart 16: IndexIQ International indices Cumulative Performance

Cumulative Performance -April 2013

-16.0%

-14.0%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

03/28/20

13

04/01/20

13

04/02/20

13

04/03/20

13

04/04/20

13

04/05/20

13

04/08/20

13

04/09/20

13

04/10/20

13

04/11/20

13

04/12/20

13

04/15/20

13

04/16/20

13

04/17/20

13

04/18/20

13

04/19/20

13

04/22/20

13

04/23/20

13

04/24/20

13

04/25/20

13

04/26/20

13

04/29/20

13

04/30/20

13

IQ Australia Small Cap IQ Canada Small Cap MSCI AC World

CumlativeReturn



18/21

Page 18

Table 13 details the sector allocations, returns and contributions as of April 30, 2013.Table 13: IQ Australia Small Cap Index (IQSMAUS) & IQ Canada Small Cap Index (IQSMCAN)

Sector Avg Wt Return Contribution Avg Wt Return Contribution

Basic Materials 24.36 -15.71 -4.19 38.62 -14.23 -5.95

Capital Goods 15.91 -9.45 -1.57 9.66 2.70 0.27

Communication Services 1.86 14.95 0.26 2.22 -0.04 0.00

Consumer Cyclicals 26.17 3.90 1.10 1.34 -5.14 -0.07

Consumer Staples 7.99 2.96 0.23 2.99 8.74 0.27

Energy 7.85 -9.65 -0.82 27.50 -1.31 -0.34

Financials 7.20 4.26 0.30 5.68 1.25 0.07

Health Care 5.23 2.16 0.11 0.72 7.54 0.05

Technology 0.96 11.19 0.10 0.49 -2.43 -0.01

Transportation 1.48 4.53 0.07 5.76 -2.25 -0.16

Utilities 0.99 -0.90 0.00 5.01 2.35 0.13

Total 100.00 -4.41 -4.41 100.00 -5.72 -5.72

IQ Australia Small Cap IQ Canada Small Cap


Chart 17 contains selected characteristics for the International indices.

Chart 17: Valuation Chart: International indices

14.97

$1.58

3.33 3.12

15.36

$1.712.14 2.20

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

Trailing P/E (excl neg EPS) Wtd Average Mkt Cap ($BB) Yield* P/BV

IQ Australia Small Cap Index IQ Canada Small Cap Index

* Yield represents the estimated yield based on current index components and the prior payout history of the components. The actual index yield may be different.



19/21

Page 19

Chart 18 contains the last 12 months and year-to-date returns for the International indices and their respective comparison indices (as

detailed in the chart footnotes).

Chart 18: Performance: International indices

-5.8%

-14.5%

25.7%

2.2%

0.5%

-8.0%

14.2%

-0.4%

-20.00% -15.00% -10.00% -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

IQ Australia Small Cap Index (1)

IQ Canada Small Cap Index (1)

IQ Index-Last 12 Months Comparative Index-Last 12 MonthsIQ Index-YTD Comparative Index-YTD

(1) MSCI Large Cap Index (total return, USD, gross dividends)

Last 12 Months

YTD

Last 12 Months

YTD



20/21

Page 20

About IndexIQ

IndexIQ is a leading issuer of index-based liquid alternative solutions focused on absolute return, real asset and international strategies.

IndexIQ solutions are offered as ETFs, Mutual Funds & Separate Accounts. IndexIQs philosophy is to democratize investment managem

by making innovative alternative investment strategies available to investors in low cost, liquid and transparent products.* IndexIQ strate

are marketed through the companys proprietary investment products and select partnerships with leading global financial institutions.

Additional information about the company and its products can be found atwww.IndexIQ.com.

*Ordinary brokerage commissions apply. IndexIQs ETF holdings are available daily on IndexIQs website. ETFs are liquid in that they

are exchange-traded.

The performance data quoted above represents past performance. Past performance is not a guarantee of future results. Performance maybe lower or higher than performance data quoted. Index performance is for illustrative purposes only and does not represent any actual

fund performance. One cannot invest directly in an index. Performance data for the indexes assumes reinvestment of dividends and is net

of the management fees for the indexes components, as applicable, but it does not reflect management fees, transaction costs or o ther

expenses that you would pay if you invested in a fund directly. Results prior to an index component's existence as an ETF are based on it

underlying index, which do not reflect underlying management fees.

IQ Alpha Hedge Index seeks to provide superior returns and lower volatility relative to the S&P 500 Index, and also seeks to provide

correlation that is similar to the correlation between hedge funds generally and the S&P 500 Index. The IQ Hedge Multi-Strategy Index

seeks to replicate the risk-adjusted return characteristics of hedge funds using various hedge fund investment styles, including long/short

equity, global macro, market neutral, event-driven, fixed income arbitrage and emerging markets. The IQ Hedge Macro Index seeks to

replicate the risk-adjusted return characteristics of a combination of hedge funds pursuing a macro strategy and hedge funds pursuing an

emerging markets strategy. The IQ Global Resource Index uses momentum and valuation factors to identify global companies that oper

in commodity-specific market segments and whose equity securities trade in developed markets, including the U.S. The IQ GlobalAgribusiness Small Cap Index provides exposure to global small cap companies engaged in the agribusiness sector, including crop

production and farming, livestock operations, agricultural supplies & logistics, agricultural machinery, agricultural chemica ls, and biofue

The IQ Global Oil Small Cap Index provides exposure to global small cap companies engaged in the oil sector, including in the areas o

exploration and production, refining and marketing, and equipment, services and drilling. The IQ Real Return Index seeks to provide a

hedge against changes in the U.S. inflation rate by providing a real return or a return above the rate of inflation, as rep resented by the

Consumer Price Index, which is published by the Bureau of Labor Statistics. The IQ Merger Arbitrage Index seeks to achieve capital

appreciation by investing in global companies for which there has been a public announcement of a takeover by an acquirer. This

differentiated approach is based on a passive strategy of owning certain announced takeover targets with the goal of generating returns th

representative of global merger arbitrage activity. The Index also includes short exposure to global equities as a partial equity market hed

The IQ Australia Small Cap Index and the IQ Canada Small Cap Index seek to achieve capital appreciation by investing in small cap

companies that make up the bottom 15% of the market capitalization of Australia and Canada respectively.

To receive a distribution, you must be a registered shareholder of the fund on the record date. Distributions are paid to shareholders on thpayment date. There is no guarantee that capital gains distributions will not be made in the future. Your own trading will also generate t

consequences and transaction expenses. Past distributions are not indicative of future distributions. Please consult your tax professional o

financial adviser for more information regarding your tax situation.

Investors are reminded that all investing involves risk, including possible loss of principal. Consider the Funds investment objectives, ri

charges and expenses carefully before investing. A prospectus with this and other information about the Funds may be obtained by visitin

www.indexiq.comor by calling (888) 934-0777. To obtain a copy of the SPDR S&P 500 ETF (SPY) prospectus which contains this and o

information call 1-866-787-2257. Read the prospectus carefully before investing.

The investment performance of QAI, QMN and CPI, because they are funds of funds, depends on the investment performance of the

underlying ETFs in which they invests. The 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 gr

volatility than investments in traditional securities, such as stocks and bonds; and fixed income securities, which subject them to credit ris

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 rariskchanges in the value of a fixed-income security resulting from changes in interest rates.

As ROOFs investments are concentrated in the real estate sector, it is exposed to concentration risk, interest rate risk, leverage risk, prop

risk and management risk. The Fund is concentrated in small capitalization companies, whose stock prices generally are more volatile tha

those of larger companies. The Fund is non-diversified and is susceptible to greater losses if a single portfolio investment declines than w

a diversified fund. The fund is not suitable for all investors. Investors in the Fund should be willing to accept a high degree of volatility inprice of the Fund's Shares and the possibility of significant losses. An investment in the Fund involves a substantial degree of risk and th

Fund does not represent a complete investment program.
http://www.indexiq.com/http://www.indexiq.com/http://www.indexiq.com/http://www.indexiq.com/http://www.indexiq.com/http://www.indexiq.com/http://www.indexiq.com/


21/21

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

calculated using the daily 4:00 pm ET net asset value (NAV). Market price returns reflect the share price 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.

ALPS Distributors, Inc. (ALPS) is the distributor for IndexIQ ETFs and Mutual Fund, the SPDR S&P 500 ETF (SPY) and certain underly

fund holdings only. Salvatore Bruno is a registered representative of ALPS.

Investment professional use only. Not to be disseminated to the public. IDX001222.050214

indexiqinsight-may2013

Documents