IQ Hedge Multi-Strategy Index

The IQ Hedge Multi-Strategy Index seeks to replicate the risk-adjusted return characteristics of the collective hedge funds using various hedge fund investment styles, including long/short equity, global macro, market neutral, event-driven, fixed income arbitrage and emerging markets.

IQ HEDGE MULTI-STRATEGY 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 September 15, 2008 (the date on which the Index began calculating in real-time) 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 Hedge Multi-Strategy 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 Credit Suisse/Tremont Blue Chip Index is compiled by Credit Suisse Tremont Index LLC, is comprised solely of hedge funds, and is designed to be representative of the overall composition of the hedge fund universe. Returns presented are net of underlying manager fees and calculation fees, but do not reflect the deduction of management fees, taxes and other expenses. The HFRX Global Hedge Fund Index is compiled by Hedge Fund Research, Inc., is comprised solely of hedge funds, and is designed to be representative of the overall composition of the hedge fund universe. Returns presented are net of underlying manager fees, but do not reflect the deduction of management fees, taxes and other expenses. 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 IQ Hedge Multi-Strategy 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 03/10/2010)

Name	Weight
ISHARES MSCI EMERGING MKT IN	9.66 %
ISHARES IBOXX H/Y CORP BOND	6.64 %
POWERSHARES DB G10 CURR HARV	6.57 %
VANGUARD EMERGING MARKET ETF	5.88 %
SPDR BARCLAYS CAPITAL HIGH YIELD BOND ETF	5.28 %

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