IQ Hedge Event-Driven Tracker ETF (QED)

Overview

The fund described operates as a "fund of funds," which signifies a mutual fund strategy that involves holding a portfolio of other investment funds rather than investing directly in stocks, bonds, or other securities. This approach allows the fund to diversify across a broader array of assets by investing at least 80% of its net assets, in addition to any borrowed means for investment purposes, in the investments that comprise its underlying index. The selection of the underlying index components follows a rules-based methodology laid out by IndexIQ, ensuring a systematic approach to investment based on predefined criteria. This method of investment aims to replicate the performance of its underlying index, which is composed of various underlying funds, each selected based on certain criteria and rules established by IndexIQ.

Products and Services

The fund offers a distinctive investment approach detailed in the following:

• Investment in Index Components: The primary service provided by the fund is the investment in the components of its underlying index. This includes a diversified portfolio of underlying funds selected according to IndexIQ's rules-based methodology. This strategy allows investors to gain exposure to a wide range of assets through a single investment.
• Diversification through Fund of Funds: By operating as a fund of funds, it enables investors to achieve diversification that may be difficult to attain through individual investments. This investment method pools resources to invest in a variety of funds, spreading risk across different sectors, geographies, and asset classes.
• Rules-Based Investment Methodology: The fund's investment process is governed by a predefined set of rules established by IndexIQ. This rules-based methodology helps in maintaining a disciplined approach to selecting the underlying index components, potentially leading to more consistent performance relative to the investment objectives.