IQ CPI Inflation Hedged Index

The IQ CPI Inflation Hedged 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 represented by the Consumer Price Index, which is published by the Bureau of Labor Statistics. The Consumer Price Index is a measure of the average change in prices over time of goods and services purchased by households and a widely recognized barometer of inflation in the U.S. Note: Inflation typically is analyzed on a year-over-year (rolling 12-month) basis, and therefore YTD and Quarterly performance is not shown. For periods greater than 12 months, returns are annualized to be comparable to the compounded growth rate of inflation.

IQ CPI INFLATION HEDGED INDEX

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 and does not represent actual Fund performance. One cannot invest directly in an index. Index performance information prior to December 31, 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 and is net of the management fees for the Index's components, as applicable, but it does not reflect management fees, transaction costs or other expenses that you would pay if you invested in the Fund directly. Results prior to an Index component's existence as an ETF are based on its underlying index, which do not reflect underlying management fees.

The IQ CPI Inflation Hedged Index is comprised solely of ETFs. Hypothetical returns presented are net of underlying ETF fees, but do not reflect the deduction of management fees, taxes and other expenses. The Consumer Price Index is published by the United States Bureau of Labor Statistics and is a measure of the average change in prices over time of goods and services purchased by households. The Barclays Capital U.S. TIPS Index measures the performance of inflation protected public obligations of the U.S. Treasury, also known as “TIPS”.

The IQ CPI Inflation Hedged 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.

Top Holdings(as of 02/08/2010)

Name	Weight
ISHARES BARCLAYS SHORT TREASURY BOND FUND	56.20 %
SPDR BARCLAYS CAPITAL 1-3 MTH T-BILL ETF	24.13 %
ISHARES BARCLAYS 20+ YEAR TR	10.21 %
SPDR GOLD TRUST	4.75 %
CURRENCYSHARES JAPANESE YEN TRUST	2.42 %

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