ETF Research Center

The IQ 50 Percent Hedged FTSE International ETF tracks a vanilla index of large- and midcap companies located in developed nations outside of North America, with roughly half of its foreign currency exposure hedged into the U.S. dollar.

FUND BASICS
Category	International Equities
Fund Sponsor	IndexIQ
Website	www.indexiq.com
Inception date	Jul 22, 2015
Assets (mns)	$332
Currency	USD
Expense ratio	20 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-End Investment Company
Custodian
Weighting	Market Cap
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	801
Wgt avg mkt cap (mns)	$66,870
Large cap (>$10bn)	84.6%
Mid cap ($2-10bn)	14.9%
Small cap (<$2bn)	0.3%
Developed mkts	95.1%
Emerging mkts	4.9%

TOP TEN HOLDINGS
Total	11.4 %
NESTLE SA-REG	1.9 %
SAMSUNG ELECTRONICS CO LTD	1.5 %
ROCHE HOLDING AG-GENUSSCHEIN	1.5 %
NOVARTIS AG-REG	1.3 %
TOYOTA MOTOR CORP	1.1 %
HSBC HOLDINGS PLC	0.9 %
SAP AG	0.8 %
AIA GROUP LTD	0.8 %
ASTRAZENECA PLC	0.8 %
ASML HOLDING NV	0.8 %

TOP COUNTRY EXPOSURE
	JAPAN	23.6 %
	BRITAIN	14.5 %
	FRANCE	9.2 %
	SWITZERLAND	9.2 %
	GERMANY	8.1 %
	AUSTRALIA	6.6 %
	SOUTH KOREA	4.6 %
	NETHERLANDS	3.9 %
	HONG KONG	3.1 %
	SPAIN	2.6 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-2.6%	12.6%	--	--	4.6%

Market Correlations
versus...	Beta	R-squared
S&P500	0.75	74%
MSCI EAFE	0.92	94%
MSCI Emg. Mkts.	0.61	72%

Technical Indicators
Recent close	$21.91
30d moving avg.	$21.84
Annualized volatility	10.5%
Short interest (ETF)	0.5%
Relative strength (RSI)	52

Liquidity measures
Avg. volume (thou.)	120
Turnover	0.8%
Bid/Ask (% of price)	0.20%
ADV underlying (mns)	$41,355

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the IQ 50 Percent Hedged FTSE Int'l ETF based on the alternatives' overlap in portfolio holdings with HFXI. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

HFXI

Expense:

20 bp

ALTAR Score™:

7.0%

ALTERNATIVE ETFs BASED ON OVERLAP WITH HFXI
Ticker	Fund Name	Overlap¹ vs HFXI (%)	Expense ratio (bp)	Savings vs HFXI (bp)	ALTAR Score™ (%)	ALTAR vs HFXI (%)
PBDM	Invesco PureBeta FTSE Developed ex-North America	88.9	7	13	7.2	+0.2
EFA	iShares MSCI EAFE	87.3	31	-11	6.7	-0.3
DBEF	Xtrackers MSCI EAFE Hedged	85.9	35	-15	6.6	-0.4
SCHF	Schwab International Equity	82.0	6	14	7.1	+0.1
EFAX	SPDR MSCI EAFE Fossil Fuel Free	81.2	20	0	6.7	-0.3
IEFA	iShares Core MSCI EAFE	80.1	7	13	6.9	-0.1
SPDW	SPDR Portfolio World ex-US	73.3	4	16	6.9	-0.1
VEA	Vanguard Europe Pacific	72.6	5	15	7.1	+0.1
IDEV	iShares Core MSCI Int'l Developed Markets	72.2	5	15	6.9	-0.1
JHMD	John Hancock Multifactor Developed International	69.3	45	-25	7.0	+0.0
PXF	Invesco FTSE-RAFI Developed ex-US	67.9	45	-25	8.0	+1.0
ESGD	iShares MSCI EAFE ESG Optimized	67.7	20	0	6.7	-0.2
FNDF	Schwab Fundamental Intl Large Cap	66.5	25	-5	8.2	+1.2
IQSI	IQ Candriam ESG International Equity ETF	64.6	15	5	6.7	-0.3
ACWX	iShares MSCI ACWI ex-US	64.4	31	-11	7.1	+0.1
CWI	SPDR MSCI ACWI ex-US	63.4	30	-10	7.1	+0.1
DWM	WisdomTree DEFA Fund	63.0	48	-28	7.5	+0.6
DDWM	WisdomTree Dynamic Currency Hedged Int'l Equity	62.6	35	-15	7.7	+0.7
DBAW	Xtrackers MSCI All World ex-US Hedged	62.4	40	-20	6.9	-0.1

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2015	2016	2017	2018	2019	2020E	2021E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2019	2020E	2021E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	IQ 50 Percent Hedged FTSE Int'l
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	10.6	%
Divided by: Fwd. P/BV	1.5	x
Less: Expense ratio	20	bp
Equals: ALTAR Score	7.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.61	CATEGORY AVERAGE	1.64

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.