Fund Description: Schwab 1000 Index ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of Schwab Strategic Trust, an open-end investment management company. <p> INVESTMENT OBJECTIVE: The Schwab 1000 Index ETF seeks to track as closely as possible, before fees and expenses, the total return of the Schwab 1000 Index. <p> INDEX DESCRIPTION: The Schwab 1000 Index is a float-adjusted market capitalization weighted index that includes the 1,000 largest stocks of publicly traded companies in the United States, with size being determined by market capitalization (total market value of all shares outstanding). The index is designed to be a measure of the performance of large- and mid-cap U.S. stocks. <p> FUND STRATEGY: The Fund, under normal circumstances, will invest at least 90% of its net assets (net assets plus borrowings for investment purposes) in stocks included in the Index. The Fund will generally replicate the Index by giving the same weight to a given security as the Index does. Under normal circumstances, the fund may invest up to 10% of its net assets in securities not included in the Index such as investments in (a) securities that are not represented in the Index but the investment adviser anticipates will be added to the Index or as necessary to reflect various corporate actions (such as mergers and spin-offs); (b) other investment companies; and (c) derivatives, principally futures contracts. The Fund may use futures contracts and other derivatives primarily to seek returns on the Fund’s otherwise uninvested cash assets to help it better track the Index. The Fund may also invest in cash, cash equivalents including money market funds. <p> FUND MANAGEMENT: Charles Schwab Investment Management, Inc. serves as the Investment Adviser to the Fund.