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IndexIQa?s IQ Global Resources ETF (GRES) Marks One-Year Anniversary

^{Published on 2010-11-03 11:35:30 - Market Wire}
 

RYE BROOK, N.Y.--([ BUSINESS WIRE ])--The IQ Global Resources ETF (NYSE Arca: GRES), the first global resources hedged Exchange-Traded Fund (ETF), marked its one-year anniversary on October 27, 2010, and the IQ Global Resources Index, which underlies GRES, marked its three-year anniversary on October 31, 2010, it was announced today by the funda™s sponsor, IndexIQ.

"One of the major investing issues addressed by GRES is the problem associated with the significant overweight in the energy sector inherent in many other broad-based commodity products"

GRES provides broad-based exposure across eight sectors of the Commodity and Global Natural Resources market, including the major commodity sectors (Precious Metals, Industrial Metals, Livestock, Energy, and Grains, Food & Fiber), plus Timber, Water and Coal. Individually, each component of GRES represents an attractive investment opportunity, and collectively they represent the broadest commodity and natural resource exposure in the ETF industry. GRES, which has no K-1¹ and does not suffer from contango and backwardation,² is designed to provide global exposure to this crucial part of the investment landscape with relatively low volatility.

aOne of the major investing issues addressed by GRES is the problem associated with the significant overweight in the energy sector inherent in many other broad-based commodity products,a said Adam Patti, chief executive officer at IndexIQ. aBy design, our fund provides a much broader exposure to the global natural resources marketplace.a

GRES performance as of October 31, 2010 was as follows:

*The inception date of GRES is October 27, 2009. 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 investora™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 returns reflect dividends and capital gains distributions. Total Returns are calculated using the daily 4:00 pm ET net asset value (NAV). Market price returns reflect the share price of the ETF as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times. The net expense ratio is 0.75% and the gross expense ratio is 0.79%, which includes (i) other Fund expenses and (ii) the Fund's pro rata share of fees and expenses incurred indirectly as a result of investing in other funds, including ETFs and money market funds. Fund performance current to the most recent month-end is available by calling 1-888-934-0777 or by visiting [ www.indexiq.com ].

GRES seeks investment results that correspond, before fees and expenses, to the performance of the IQ Global Resources Index, which marked its 3-year anniversary on October 31, 2007. The Index uses momentum and valuation factors to identify global companies that operate in commodity-specific market segments and whose equity securities trade in developed markets, including the U.S. It is constructed by first equal-weighting eight Global Resources sub-sectors, with the sub-sectors overweighted and underweighted monthly based on valuation and momentum factors and on IndexIQa™s rules-based discipline. It is reconstituted annually, and includes short exposure to global equities as a partial equity market hedge.

IndexIQ products are designed to be liquid, transparent, low cost, and accessible to a broad range of investors.* The companya™s investment products include ETFs, mutual funds, and institutional accounts. Many of these are the first of their kind to be introduced to the market and include:

• IQ Alpha Hedge Strategy Fund (IQHIX a" Institutional Share Class; IQHOX a" Investor Share Class), the first open-end, no-load hedge fund replication mutual fund;
• IQ Hedge Multi-Strategy Tracker ETF(NYSE Arca: QAI), the first US-listed hedge fund replication Exchange-Traded Fund;
• IQ Global Resources ETF (NYSE Arca: GRES), the first hedged global natural resources ETF;
• IQ Merger Arbitrage ETF (NYSE Arca: MNA), the first merger arbitrage ETF;
• IQ Hedge Macro Tracker ETF(NYSE Arca: MCRO), the first Global Macro/Emerging Markets hedge fund replication ETF;
• IQ Real Return ETF (NYSE Arca: CPI), the first US-listed areal returna ETF, which seeks to generate a real return above the rate of inflation as measured by changes in the Consumer Price Index;
• 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;
• IQ South Korea Small Cap ETF(NYSE Arca: SKOR), the first South Korea small cap ETF;
• IQTaiwan Small Cap ETF (NYSE Arca: TWON), the first Taiwan small cap ETF.

* IndexIQa™s ETF holdings are available daily on IndexIQa™s website. Brokerage commissions apply to ETFs. ETFs are liquid in that they are exchange-traded.

About IndexIQ

Based in Rye Brook, New York, IndexIQ is the leading developer of index-based alternative investment solutions that combine the benefits of traditional index investing with the risk-adjusted return potential sought by the best active managers. The companya™s philosophy is to democratize investment management by making innovative alternative investment strategies available to all investors in low cost, liquid, transparent and tax-efficient products. IndexIQ strategies are marketed through the companya™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 ].

1) Investors in GRES do not receive K-1s for tax reporting purposes, as do investors in other commodities and natural resources investments. GRES distributes a single Form 1099 to its shareholders.

2) Contango (backwardation) occurs when the futures price is above (below) the expected future spot price, resulting in the price declining (rising) to the spot price before the delivery date.

Index performance does not reflect charges and expenses associated with the Funds or brokerage commissions associated with buying and selling ETF shares. The IQ Global Resourced Index uses momentum and valuation factors to identify global companies that operate in commodity-specific market segments and whose equity securities trade in developed markets, including the U.S. These segments include Precious Metals; Industrial Metals; Livestock; Energy; Grains, Food, and Fiber; Timber, Water and Coal. The Dow Jones-UBS Commodity Index is composed of futures contracts on physical commodities traded on U.S. exchanges, with the exception of aluminum, nickel and zinc, which trade on the London Metal Exchange (LME). The MSCI World Index is a free-float adjusted market capitalization weighted index that is designed to measure the equity market performance of developed market. One cannot invest directly in an index. Volatility is the standard deviation or measure of the range of a portfolioa™s performance, meaning the degree to which it rises above and falls below its average return.

Investors are reminded that all investing involves risk, including possible loss of principal. The IQ Alpha Hedge Strategy Fund (IQ Fund), the IQ Hedge Multi-Strategy Tracker ETF (IQ Multi-Strategy ETF), and the IQ Macro Tracker ETF (IQ Macro ETF) are not hedge funds and do not invest in hedge funds. The IQ Alpha Hedge Strategy Fund is a registered open-end mutual fund that invests in exchange-traded funds (ETFs) and similar securities in an attempt to replicate the performance characteristics of certain hedge fund investing styles, but with less cost, more liquidity, and greater portfolio transparency than traditional hedge funds. The Funds are new, with limited historical performance data. There can be no assurance that the Fundsa™ investment strategies will be successful.

The investment performance of the IQ Multi-Strategy ETF, the IQ Macro ETF and the IQ Real Return ETF (collectively, the IQ ETFs), because they are funds of funds, depends on the investment performance of the underlying ETFs in which they invest. There is no guarantee that the IQ ETFs themselves, or each of the underlying ETFs in the Fundsa™ portfolios, will perform exactly as its underlying index. The IQ ETFs are non-diversified and susceptible to greater losses if a single portfolio investment declines than would a diversified mutual fund. The IQ ETFsa™ 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 a" the possibility that the issuer of a security will be unable to make interest payments and/or repay the principal on its debt a" and interest rate risk a" changes in the value of a fixed-income security resulting from changes in interest rates. Leverage, including borrowing, will cause some of the IQ ETFa™s underlying ETFs to be more volatile than if the underlying ETFs had not been leveraged.

ETFs should be considered speculative investments entailing a high degree of risk, are not suitable for all investors and do not represent a complete investment program.

Consider the Fundsa™ 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.

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.

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