Mutual Fund Summary Prospectus (497k)
March 24 2014 - 5:26PM
Edgar (US Regulatory)
Filed Pursuant to Rule 497K
File Nos 333-152915 & 811-22227
IndexIQ ETF Trust
(the “Trust”)
Supplement dated March 24, 2014
to the Summary Prospectus dated August 30,
2013
IQ Hedge Market Neutral Tracker ETF
On page 3 of the Summary Prospectus, the following
new paragraph is added after the second paragraph under “Principal Investment Strategies”:
The Underlying Index may include both long and short positions
in ETFs and ETVs. As opposed to taking long positions in which an investor seeks to profit from increases in the price of a security,
short selling (or “selling short”) is a technique used by the Fund to try and profit from the falling price of a security.
Short selling involves selling a security that has been borrowed from a third party with the intention of buying the identical
security back at a later date to return to that third party. The basic principle of short selling is that one can profit by selling
a security now at a high price and later buying it back at a lower price. The short seller hopes to profit from a decline in the
price of the security between the sale and the repurchase, as the seller will pay less to buy the security than it received on
selling the security.
On page 5 of the Summary Prospectus, the following
paragraphs are added prior to “Exchange Traded Vehicle Risk:”
Long/Short Risk
There is no guarantee that the returns on the Fund’s
long or short, if any, positions will produce positive returns, and the Fund could lose money if either or both positions produce
negative returns. In addition, the Fund may gain enhanced long exposure to certain securities (i.e., obtain investment exposure
that exceeds the amount directly invested in those assets, a form of leverage) and, as a result, suffer losses that exceed the
amount invested in those assets.
Short Sales Risk
Short positions introduce more risk
to the Fund than long positions (purchases) because the maximum sustainable loss on a security purchased (held long) is limited
to the amount paid for the security plus the transaction costs, whereas there is no maximum attainable price of the shorted security.
Therefore, in theory, securities sold short have unlimited downside potential.
Investors Should Retain This Supplement
for Future Reference
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