Fund Description: Schwab US Long-Term U.S. Treasury ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the Schwab Strategic Trust, an open-end investment management company. <p> INVESTMENT OBJECTIVE: The Schwab US Long-Term U.S. Treasury ETF o track as closely as possible, before fees and expenses, the total return of an index that measures the performance of the Bloomberg Barclays US Long Treasury Index. <p>INDEX DESCRIPTION: The Bloomberg Barclays US Long Treasury Index includes all publicly issued, U.S. Treasury securities that have a remaining maturity of ten or more years, are rated investment grade, and have $300 million or more of outstanding face value. The securities in the index must be denominated in U.S. dollars and must be fixed-rate and non-convertible. The index excludes U.S. Treasury stripped securities. The index is market capitalization weighted and the securities in the index are updated on the last business day of each month. <p> FUND STRATEGY: Under normal circumstances it will invest at least 90% of its net assets (including, for this purpose, any borrowings for investment purposes) in securities included in the index. The fund may invest up to 10% of its net assets in securities not included in its index. The principal types of these investments include those that the investment adviser believes will help the fund track the index. The fund may also invest in cash and cash equivalents, including money market funds, enter into repurchase agreements, and may lend its securities to minimize the difference in performance that naturally exists between an index fund and its corresponding index. Because it is not possible or practical to purchase all of the securities in the index, the investment adviser will seek to track the total return of the index by using sampling techniques. The fund generally expects that its portfolio will hold less than the total number of securities in the index, but reserves the right to hold as many securities as it believes necessary to achieve the fund’s investment objective. The fund may sell securities that are represented in the index in anticipation of their removal from the index. <p> FUND MANAGEMENT: Charles Schwab Investment Management, Inc. serves as the Investment Adviser to the Fund.