IQ Hedge Multi-Strategy Tracker ETF (QAI) Tops $1 Billion in Assets

The IQ Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI), the first liquid alternative exchange-traded fund (ETF), topped $1 billion in assets, it was announced by the fund’s sponsor, IndexIQ, a leading developer of liquid alternative investment solutions. QAI, which marked its five year anniversary in March, is the largest fund in its category and anchors IndexIQ’s growing family of liquid alternative solutions that includes ETFs, mutual funds, separate accounts and model portfolios.

“This is a significant milestone for QAI, and a testament to the increased recognition of the role liquid alternatives can play in an investor’s portfolio,” said Adam Patti, chief executive officer at IndexIQ. “QAI is now widely considered the ‘S&P 500 of the hedge fund market.’ We look forward to continuing to bring this message to the market in the New Year. QAI offers investors a way to carve off exposure to their traditional fixed income investments, yet be in a product that is designed to potentially experience price appreciation in a rising rate environment.” QAI, which was the first and remains the largest liquid alternative ETF, grew its assets by approximately 57% in 2014.

QAI seeks to track, before fees and expenses, the performance of the IQ Hedge Multi-Strategy Index. The Index, part of a family of investable benchmark hedge fund replication indexes that have been calculating live since 2007, 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.

In addition to QAI, several other IndexIQ funds were launched as first-movers in providing liquid exposures to distinct traditional hedge fund strategies, including:

• IQ Alpha Hedge Strategy Fund (IQHIX – Institutional Share Class; IQHOX – Investor Share Class), the first open-end, no-load hedge fund replication mutual fund;
• IQ Hedge Market Neutral Tracker ETF (NYSE Arca: QMN), providing exposure to the market neutral hedge fund universe;
• IQ Hedge Macro Tracker ETF (NYSE Arca: MCRO), the first Global Macro/Emerging Markets hedge fund replication ETF; and
• IQ Merger Arbitrage ETF (NYSE Arca: MNA), the first merger arbitrage ETF.

IndexIQ indexes also underlie a variety of other innovative investment products and are designed to be liquid, transparent, low cost,* and accessible to a broad range of investors, many also have been the first of their kind to be introduced to the market. These include:

• IQ Real Return ETF (NYSE Arca: CPI), the first US-listed “real return” ETF, which seeks to generate a real return above the rate of inflation as measured by changes in the Consumer Price Index;
• IQ US Real Estate Small Cap ETF (NYSE Arca: ROOF), the first US Real Estate Small Cap ETF;
• IQ Global Agribusiness Small Cap ETF (NYSE Arca: CROP), the first agribusiness small cap ETF;
• IQ Global Resources ETF (NYSE Arca: GRES), the first hedged global natural resources ETF;
• IQ Global Oil Small Cap ETF (NYSE Arca: IOIL), the first global oil small cap ETF;
• IQ Canada Small Cap ETF (NYSE Arca: CNDA), the first Canada small cap ETF;
• IQ Australia Small Cap ETF (NYSE Arca: KROO), the first Australia small cap ETF.

About IndexIQ

IndexIQ is a leading issuer of liquid alternative solutions focused on absolute return, real asset and international strategies. IndexIQ solutions are offered as ETFs, Mutual Funds, Separate Accounts and Model Portfolios. IndexIQ’s philosophy is to democratize investment management by making innovative alternative investment strategies available to investors in low cost, liquid and transparent products.* IndexIQ strategies are marketed through the company’s proprietary investment products and select partnerships with leading global financial institutions. Additional information about the company and its products can be found at www.IndexIQ.com.

*IndexIQ’s ETF holdings are available daily on IndexIQ’s website. Brokerage commissions apply to ETFs. ETFs are liquid in that they are exchange-traded. Index performance does not reflect charges and expenses associated with the Funds or brokerage commissions associated with buying and selling ETF shares.

Investors are reminded that all investing involves risk, including possible loss of principal. Consider the Funds’ investment objectives, risks, charges and expenses carefully before investing. A prospectus with this and other information about the Funds may be obtained by visiting www.indexiq.com or by calling (888) 934-0777. Read the prospectus carefully before investing.

QAI'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 any of the ETFs in the Fund's portfolio, will perform exactly as its underlying index. 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. 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.

IndexIQ ETFs and mutual funds are distributed by ALPS Distributors, Inc. (ALPS), which is not affiliated with IndexIQ. Adam Patti is a registered representative of ALPS.

IDX001682.012316