IQ 130/30 Index

The IQ 130/30 Index is a rules-based, passive investment strategy that seeks to achieve long-term capital appreciation. The strategy employs fundamental factors to select U.S. stocks with a target long exposure of 130% of the portfolio and a matching short exposure of 30% of the portfolio. The product's differentiated approach is based on a purely quantitative, multi-factor model that leverages the alpha generated by a customized quantitative model combined with the controlled use of short positions to enhance the risk-adjusted returns of the portfolio. IndexIQ employs both value and growth factors to achieve a balanced portfolio consistent with a core investment style.

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 April 30, 2008 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 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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