IQHIX
IQ Hedge Multi-Strategy Plus Fund IQHOX
®
Fact Sheet 9/30/2015
Fund Description
Fund Data
Features and Benefits
The Fund seeks to track, before fees and
expenses, the performance of the IQ
Hedge Multi-Strategy Plus Index.
Index Description
The IQ Hedge Multi-Strategy Plus Index
seeks to replicate the risk-adjusted return
characteristics of hedge funds using
multiple hedge fund investment styles,
including long/short equity, global macro,
market neutral, event-driven, fixed income
arbitrage, and emerging markets.
The Fund does not invest in hedge funds
and the Index does not include hedge
funds as components. The Fund is not
suitable for all investors.
Seeks hedge fund-like performance
Seeks low correlation to equity markets
Low fees ±
Daily liquidity
Portfolio transparency – holdings
available monthly
• No hedge fund manager-specific risk –
Fund tracks rules-based index1
•
•
•
•
•
Risk Considerations
•
•
•
•
•
Investment in underlying ETFs
Tracking error to the Index
Use of derivatives
Use of leverage
Use of short selling
Class I
Ticker
IQHIX
CUSIP
454076209
Management Fee & Other Expenses
1.16%
Acquired Fund Fees
.23%
Total Annual Fund Operating Expenses
1.39%
Minimum Investment6
$5,000,000
Class A
Ticker
CUSIP
Management Fee, 12b-1 Fees, and
Other Expenses
Acquired Fund Fees
Total Annual Fund Operating Expenses
Minimum Investment6
IQHOX
454076100
1.55%
.23%
1.78%
$25,000
Index Data2 Since Inception (10/31/2007)
Index Symbol
Index Dividend Yield5
See risk discussion on reverse side.
IQHGALPH
3.13
Alpha*
1.98%
Beta*
* vs. S&P 500
®
0.35
Index
Performance History
Index Grow th of 10,000 (10/31/2007 – 9/30/2015)
Index Risk/Return Profile (10/31/2007 – 9/30/2015)
10%
18,000
17,000
16,000
15,000
14,000
13,000
12,000
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
Annualized Return
5%
0%
-5%
-10%
0%
2%
4%
6%
8%
10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30%
Annualized volatility
IQ Hedge Multi-Strategy Plus Index
HFRI FoF Composite Index
S&P 500® Index
IQ Hedge Multi-Strategy Plus Index: 13,544
HFRI FoF Composite Index: 10,133
S&P 500® I ndex: 14,730
Fund/Index History
Quarter
YTD
1 Year
3 Year † 5 Year †
Strategy
IQ Hedge Multi-Strategy Plus Fund - Class I (NAV)
IQ Hedge Multi-Strategy Plus Fund - Class A (NAV)
(max 5.5% load)*
HFRI FoF Composite Index
BarCap US Aggregate Index
S&P 500® Index
*For the period beginning June 30, 2008.
Return
-3.48%
-3.68%
-9.00%
-3.28%
1.23%
-6.44%
Return
-2.93%
-3.31%
-3.31%
-0.65%
1.13%
-5.29%
Return
-2.70%
-3.19%
-3.19%
0.29%
2.94%
-0.61%
Return
2.28%
1.85%
1.85%
4.27%
1.71%
12.40%
Return
1.68%
1.24%
1.24%
2.75%
3.09%
13.33%
Since Fund Inception
Date
Inception †
2.73%
2.36%
2.36%
0.67%*
4.60%*
8.08%*
6/30/2008
7/23/2008
† annualized
The performance data quoted above represents past performance. Past performance is not a guarantee of future results. Investment return and value of the Fund shares will fluctuate so that
an investor’s shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. Fund performance current to
the most recent month-end is available by calling 1-888-934-0777 or by visiting www.IQetfs.com. The Fund has a 2% redemption fee on shares held less than 7 days. Fund returns reflect
dividends and capital gains distributions. Index performance is for illustrative purposes only and does not represent actual Fund performance. One cannot invest directly in an index.
Performance data for the Index 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. No representation is being made that any investment will achieve performance similar to that shown.
*Effective April 15, 2015, Class A shares have a maximum front end sales load of 5.5%. The Class A returns shown in the table for periods that begin before the sales load became effective
do not reflect the sales load.
± Lower fees than typical hedge funds.
†The Fund’s investment advisor has contractually agreed to waive fees and/or reimburse expenses through September 30, 2015, to ensure that the net annual Fund expenses (excluding
certain fees such as 12(b)1 fees, taxes, and the fees and expenses of the underlying ETFs) will not exceed 1.65% for the Institutional Share Class and the Investor Share Class, for the
possible recoupment from the Fund in future years. Without these waivers, the Fund’s total annual expense would be higher and performance would be lower.
Contact IndexIQ: www.IQetfs.com • Innovate@IndexIQ.com • 1-888-934-0777
-15%
-5%
5%
15%
25%
35%
45%
55%
Monthly Strategy Allocation – 6 Month
Aggregate Bond: 38.64%
U.S. Short Term Treasury Bond: 38.31%
U.S. Small Cap Growth: 16.61%
Floating Rate: 13.51%
Convertible Bonds: 11.42%
U.S. Large Cap Value: 9.50%
Investment Grade Corporate Bond: 6.76%
International Equity: 5.46%
Currency Strategy: 3.69%
U.S. Large Cap Core: 2.54%
Europe Equity: 2.39%
Currencies: 2.12%
Emerging Equity: 1.86%
U.S. REITS: 0.88%
BRIC Equity: 0.12%
International Bond: -0.16%
Commodities: -0.34%
Volatility: -0.39%
U.S. Small Cap Core: -1.00%
International REITS: -1.02%
U.S. Large Cap Growth: -2.79%
Asia ex Japan Equity: -4.01%
High Yield Corporate Bond: -5.73%
U.S. Small Cap Value: -13.38%
% Allocation to IndexIQ Sub-Sectors
Index Asset Allocation4 - 9/30/15
40%
30%
20%
10%
0%
-10%
-20%
IQ Hedge
Emerging
Markets
Beta Index
4/30/2015
Name
Vanguard Total Bond Market Index Fund
6/30/2015
7/31/2015
8/31/2015
9/30/2015
Maximum Drawdown Analysis Since Index Inception
IQ Hedge MultiStrategy Plus
Index
Maximum Drawdown
-18.01%
Oct-07
Drawdown Start
Drawdown End
Oct-08
Recovery Date
Sep-09
Long Exposure
BND
5/31/2015
IQ Hedge
Global
Macro Beta
Index
% Allocation to Index Sub-Sectors
Top 10 Index Holdings4 - 9/30/15
Ticker
IQ Hedge
IQ Hedge
IQ Hedge
IQ Hedge
Market
Long/Short
Event-Driven
Fixed
Beta Index Neutral Beta Beta Index
Income
Index
Arbitrage
Beta Index
Weight
19.16%
BSV
Vanguard Short Term Bond Index Fund ETF
18.80%
AGG
iShares Core U.S. Aggregate Bond ETF
18.78%
SHY
iShares 1-3 Year Treasury Bond ETF
13.31%
BKLN
PowerShares Senior Loan Portfolio
11.92%
CWB
SPDR Barclays Convertible Securities ETF
11.42%
IWO
iShares Russell 2000 Growth ETF
7.62%
LQD
iShares iBoxx USD Investment Grade Corporate Bond ETF
6.53%
VBK
Vanguard Small Cap Growth Index Fund
5.08%
FXE
CurrencyShares Euro Trust
4.66%
S&P 500®
Index
-50.95%
Oct-07
Feb-09
Mar-12
HFRI FoF
Composite Index
-22.20%
Oct-07
Dec-08
Jun-14
The maximum drawdown analysis measures the largest decline
between any two points in the monthly return history of the respective
indexes, and indicates the time period during which such drawdown
occurred, as well as the date on which the index’s returns had fully
recovered (if applicable) all losses incurred during the drawdown
period.
Short Exposure
Ticker
Name
IWN
iShares Russell 2000 Value ETF
Weight
-5.27%
VBR
Vanguard Small Cap Value Index Fund
-5.10%
UUP
Powershares DB US Dollar Index Bullish Fund
-3.59%
WIP
SPDR DB International Government Inflation-Protected Bon
-3.56%
HYG
iShares iBoxx USD High Yield Corporate Bond ETF
-3.23%
Consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus and the statement of additional information include this and other relevant
information about the Fund and are available by visiting www.IQetfs.com or calling 1-888-934-0777. Read the prospectus carefully before investing.
Risk Discussion: Mutual fund investing involves risk, including loss of principal. There is no guarantee that the Fund will meet its objective. The Fund is not be suitable for all investors due to its use of
leverage, short selling, and derivatives, or for other reasons. Funds that use leverage to seek to increase return are subject to greater risk in adverse market conditions. There are particular risks
associated with funds that employ short sales, such as the fact that the potential loss from a short position theoretically is unlimited. The Fund's use of derivatives, such as swap agreements, may
expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The Fund'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 each of the ETFs in the Fund's portfolio, will perform exactly as its
underlying index. An investor in the Fund will bear the operating expenses of the underlying ETFs in which the Fund invests. The Fund is non-diversified and may be susceptible to greater losses if a
single portfolio investment declines than would a diversified mutual fund. The Fund is not intended to provide a complete investment program and should be considered a speculative investment.
The IQ Hedge Multi-Strategy Plus Index seeks to replicate the risk-adjusted return characteristics of hedge funds using multiple hedge fund investment styles, including long/short equity, global macro,
market neutral, event-driven, fixed income arbitrage, and emerging markets. HFRI Fund of Funds Composite Index (“HFRI FoF Composite Index”) is an equally weighted hedge fund index including
over 650 domestic and off-shore fund of funds. The BarCap US Aggregate Index measures the performance of the U.S. investment grade bond market. The S&P 500 Index is based on the market
capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ. Sources for IndexIQ and benchmark data: IndexIQ, FactSet, Bloomberg.
1The Fund employs a “passive management” – or indexing – investment approach designed to track the performance of the Index. The Fund invests primarily in the Index components that make up
the Index.
2Alpha is a measure of a portfolio’s actual excess returns and expected performance, given its level of risk (as measured by Beta); Beta reflects the sensitivity of a portfolio’s return to fluctuations in
the market (in this case, as measured by the S&P 500® Index); Sharpe Ratio is a measure of a portfolio’s risk-adjusted performance (return per unit of risk)
3For performance reporting purposes, the inception date is the first day the Fund commenced operations, which is June 30, 2008 for the Institutional Class Shares and July 23, 2008 for the Investor
Class Shares. Performance is annualized.
4Demonstrates the allocations of the Index to the various asset classes represented by the Index's underlying ETFs. Negative values, if any, refer to short positions. Weights for each Index
component include application of 25% leverage. The asset allocation information and holdings are subject to change without notice.
5Index Dividend Yield is a measure of the annual dividends of the shares of all index components divided by the index value.
6Minimum investment may be waived for certain purchases. Please see the prospectus.
MainStay Investments® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life
Insurance Company, New York, NY 10010, provides investment advisory products and services. IndexIQ® is the indirect wholly owned subsidiary of New York Life Investment Management Holdings
LLC. ALPS Distributors, Inc. (ALPS) is the principal underwriter of the ETFs. NYLIFE Distributors LLC is a distributor of the ETFs and the principal underwriter of the mutual fund. NYLIFE Distributors
LLC is located at 169 Lackawanna Ave, Parsippany, NJ 07054. ALPS Distributors, Inc. is not affiliated with NYLIFE Distributors LLC. NYLIFE Distributors LLC is a Member FINRA/SIPC.
The IQ Hedge Multi-Strategy Plus Index is the exclusive property of IndexIQ, which has contracted with Solactive to maintain and calculate the Index. IndexIQ® and IQ® are registered service marks of
IndexIQ.
Not FDIC Insured • May Lose Value • Not BankContact
Guaranteed
• Copyright
© 2015 IndexIQ. •All Innovate@IndexIQ.com
rights reserved.
IndexIQ:
www.IQetfs.com
• 1-888-934-0777
NYLIM-1633834
IDX001656.063015
MEIQH05-10/15