OCEN | IQ Clean Oceans ETF

Foreign securities can be subject to greater risks than U.S. investments, including currency fluctuations, less liquid trading markets, greater price volatility, political and economic instability, less publicly available information, and changes in tax or currency laws or monetary policy.  These risks are likely to be greater for emerging markets than in developed markets.

Large-Capitalization Companies Risk: Large-capitalization companies may be less able than smaller capitalization companies to adapt to changing market conditions. Large-capitalization companies may be more mature and subject to more limited growth potential compared with smaller capitalization companies. During different market cycles, the performance of large-capitalization companies has trailed the overall performance of the broader securities markets.

New Fund Risk The Fund is a new fund. As a new fund, there can be no assurance that it will grow to or maintain an economically viable size, in which case it could ultimately liquidate.

Small and mid-cap stocks are often more volatile than large-cap stocks.  Smaller companies generally face higher risks due to their limited product lines, markets and financial markets.

ESG Investing Style Risk Impact investing and/or Environmental, Social and Governance (ESG) managers may take into consideration factors beyond traditional financial information to select securities, which could result in relative investment performance deviating from other strategies or broad market benchmarks, depending on whether such sectors or investments are in or out of favor in the market. Further, ESG strategies may rely on certain values based criteria to eliminate exposures found in similar strategies or broad market benchmarks, which could also result in relative investment performance deviating. There is no assurance that employing ESG strategies will result in more favorable investment performance.

Clean Oceans Investing Style: The returns on a portfolio of securities that excludes companies that have not adopted practices and policies that help to protect and/or achieve a cleaner ocean through reduced pollution and increased resource efficiency may trail the returns on a portfolio of securities that includes companies that have not adopted these practices and policies. Investing only in a portfolio of securities of companies that help to protect and/or achieve a cleaner ocean through reduced pollution and increased resource efficiency may affect the Fund’s exposure to certain types of investments and may adversely impact the Fund’s performance depending on whether such investments are in or out of favor in the market.

The IQ Candriam Clean Oceans Index is a quantitative and investable index developed by Solactive AG. It is a net total return index published in USD. A net total return index seeks to replicate the overall return from holding a portfolio consisting of the index constituents.

“Oceana, Inc. (“Oceana”) licenses to IndexIQ, the sponsor of IQ Clean Oceans ETF (the “Fund”), certain trademarks for use in connection with the Fund.  Shares of the Fund are not issued, sponsored, endorsed or promoted by Oceana. IndexIQ, and its affiliates are donors to and supporters of Oceana and are making a substantial contribution to Oceana.  Oceana makes no representation or warranty, express or implied, to prospective or actual investors in the Fund or to any member of the public regarding the advisability of investing in any financial product, including one seeking to track the index representing securities which are consistent with Oceana’s stated objectives and mission (the “Underlying Index”), the ability of the Fund to track the performance of the index constructed by the Fund’s index provider to , the ability of the Underlying Index to meet or exceed stock market performance, the suitability of the Underlying Index for use by the Fund, the suitability of the Fund or the ability of the Underlying Index or Fund to achieve its investment goals. Oceana has no obligation or liability to the Fund, any Fund investor, or any other person in connection with the operation, administration, marketing of or trading in the Fund or shares of the Fund or otherwise. Oceana is not an investment adviser or a fund distributor or service provider and is not involved in the ongoing operation of the Fund. Oceana is not responsible for the completeness or accuracy of the Fund’s registration statement. Inclusion of a security within the Underlying Index is not a recommendation by Oceana to buy, sell or hold such security, nor is it considered to be investment advice or a guarantee that the investment goals of the Underlying Index will be achieved. Oceana is not involved with the construction, calculation or ongoing operation of the Underlying Index and does not guarantee the accuracy and/or the completeness of the Underlying Index or any data included therein.” 

“New York Life Investment Management LLC (“NYLIM”) and IndexIQ Advisors LLC (“IndexIQ”) are donors to and supporters of Oceana, Inc. (”Oceana”).  Oceana has authorized NYLIM and IndexIQ to reference its name and certain marks owned by Oceana in connection with a commercial co-venture entered into between the Parties.  None of the payments made by NYLIM and IndexIQ to Oceana is in exchange for services provided by Oceana. NYLIM and IndexIQ’s contribution to Oceana is calculated on an annualized basis to be the lower of: (i) 0.045% of the Fund’s average daily net managed assets (the average daily value of the total assets of the Fund, less all accrued liabilities of the Fund and less any management fees waived by the Fund’s adviser or sub-adviser); or (ii) ten percent of the Fund’s net annual management fee taking into account all applicable fee waivers and expense reimbursements.  NYLIM and IndexIQ will make annual minimum contributions of $50,000 per year through the fifth anniversary of the listing of the ETF on a national securities exchange.”

The 'Blue Economy' is sustainable use of ocean resources for economic growth, improved livelihoods and jobs, and ocean ecosystem health.

1. Oceana, as of October 2021

2. Reuters Events. “ESG investors slow to make waves in the $2.5tn ocean economy.” Mike Scott. Accessed 19 Sept. 2021 https://www.reutersevents.com/sustainability/esg-investors-slow-make-waves-25tn-ocean-economy

3. CNBC. “Here’s the economic case for investing in oceans.” Emma Newburger. Accessed 4 Oct. 2021 https://www.cnbc.com/2020/07/13/heres-the-economic-case-for-investing-in-oceans.html.