Schwab Fundamental U.S. Large Company Index

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 measures the performance of the large company size segment by fundamental overall company scores.

The research team also utilizes a sampling methodology to select stocks from the index universe to obtain a representative sample of stocks that resembles the Index in terms of key risk factors, performance attributes 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 seeks to hold each security in approximately the same proportion as its weighting in the Index.

Also, the fund may invest in derivatives, principally futures contracts, and lend its securities.

The fund may concentrate its investments in an industry or group of industries to approximately the extent that the index the fund is designed to track is also so concentrated.