Fixed Income Investments: Fixed Income & Inflation Protected Fund from Schwab.com

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.

Morningstar data quoted represents past performance and does not indicate future results. Visit Schwab.com for more information including month-end performance information. Current performance may be lower or higher. Investment value will fluctuate, and shares, when redeemed, may be worth more or less than original cost.

Investment risks to consider – Please refer to the fund’s prospectus for additional principal risks.
Bonds and bond funds are subject to negative price fluctuation during times of increasing interest rates. Bond mutual funds are subject to the risk that a decline in the credit quality of a portfolio holding could cause the fund’s share price to decline. Fixed-income securities are subject to other various important risks that should be considered before making any investment in a bond fund, such as: changes in inflation, market valuations or events, liquidity, prepayments, and early redemption. Therefore the fund may not be appropriate for investors seeking a fixed rate of income. The fund generally has a higher risk level than a fund that invest in U.S. treasuries not structured to provide inflation protection.

During extended periods of either low inflation or decreasing prices (deflation), as measured by the Consumer Price Index (CPI), the principal value of inflation protected securities, such as U.S. Treasury Inflation Protected Securities (TIPS), will be adjusted downwards and the interest payable on the securities will be reduced. During extended periods of falling prices, these securities may not generate any income for distribution to investors. And while U.S. TIPS are guaranteed by the full faith and credit of the U.S. Treasury, the U.S. Treasury does not protect against losses incurred as a result of downward adjustments to principal resulting from extended periods of falling prices.

1. Schwab and the investment adviser have agreed to limit the fund's "net operating expenses" as stated in the prospectus for each fund, for so long as the investment adviser serves as the adviser to the fund. This agreement may only be amended or terminated with the approval of the fund's Board of Trustees. The limitation excludes interest, taxes, expenses for dividends and interest paid on securities sold short, and certain non-routine expenses, which may result in a fund incurring net operating expenses above the limitation.

Protect your spending power from being eroded by inflation

Learn more about the Schwab Inflation Protected Fund: