Schwab U.S. Mid-Cap 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 stocks included in the Index.

The Index includes the mid-cap portion of the Dow Jones U.S. Total Stock Market Index.

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 seeks to replicate the performance of the benchmark index, holding each security in approximately the same proportion as its weighting in the Index.

Also, the fund may invest up to 10% of its net assets in securities not included in the Index.

The fund will concentrate its investments in a particular industry, group of industries or sector to approximately the same extent that the index is so concentrated.

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