The IQ Hedge Multi-Strategy Tracker ETF seeks to track, before fees and expenses, the performance of the IQ Hedge Multi-Strategy Index. The Index attempts 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.

Inception:  March 2009

Assets:  $130 Million

The IQ Hedge Macro Tracker ETF seeks to track, before fees and expenses, the performance of the IQ Hedge Macro Index. The Index attempts 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.

Sponsor: Index IQ

Symbol: MCRO

Inception: June 2009

Assets $26 Million

The IQ Merger Arbitrage ETF seeks to track, before fees and expenses, the performance of the IQ Merger Arbitrage Index. The 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 that are representative of global merger arbitrage activity. The Index also includes short exposure to global equities as a partial equity market hedge. Merger arbitrage is a directional hedge fund strategy. The IQ Merger Arbitrage ETF is not a hedge fund and does not invest in hedge funds.

Inception:  November 2009

Assets: $21 Million

The objective of the Trust is to maximize absolute returns from investments with historically low correlation to traditional asset classes while seeking to control the risks and volatility inherent in futures and forward contracts by taking long and short positions in historically correlated assets. The return on assets in the Trust is not intended to track the performance of any index or other benchmark.

Inception:  October 2009

Assets:  $130 Million

The investment objective of the Active Bear ETF (HDGE) is capital appreciation through short sales of domestically traded equity securities. The HDGE portfolio is sub-advised by Ranger Alternative Management, L.P. The portfolio management team implements a bottom-up, fundamental, research driven security selection process. In selecting short positions, the Fund seeks to identify securities with low earnings quality or aggressive accounting which may be intended on the part of company management to mask operational deterioration and bolster the reported earnings per share over a short time period. In addition, the portfolio management team seeks to identify earnings driven events that may act as a catalyst to the price decline of a security, such as downwards earnings revisions or reduced forward guidance.

Inception: January 2011

Assets: $40 Million

The return on the ETNs is based on the performances of the Credit Suisse Long/Short Liquid Index (Net) (the CS L/S Liquid Index or the “Index”). The CS L/S Liquid Index is reported by Bloomberg under the ticker CSLABLN and reflects the return of a dynamic basket of liquid, investable and transparent market factors selected and weighted in accordance with an algorithm that aims to track the performance of the Credit Suisse Tremont Long/Short Equity Hedge Fund Index.