Schwab Fundamental U.S. Broad Market Index ETF

The fund seeks to replicate the total return performance of the benchmark index before fees and expenses by investing in companies in the United States.

The investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.

Next, the research team invests significantly in the stocks included in the Index.

The research team also utilizes a sampling methodology to evaluate a company’s performance attributes, tax considerations, capitalization, dividend yield, price/earnings ratio, industry factors, risk factors and other characteristics.

Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.

The fund may hold 25% or more of its net assets in a particular industry, group of industries or sector to approximately the same extent that the index is so concentrated.

The fund may invest up to 10% of its net assets in securities not included in the index.

Additionally, the fund may also invest in cash and cash equivalents, including money market funds, and may lend its securities.