Equity Index Funds

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.
2. The Industry Average is the average expense ratio of all no-load index mutual funds in the same Morningstar Category as the Schwab Equity Index Fund it is being compared to, as of 09/30/2009. The expense ratios are obtained from each fund’s prospectus.

Index ownership - "Standard & Poor's®", "S&P®", "S&P 500®", "Standard & Poor's 500" and "500" are trademarks of the McGraw-Hill Companies, Inc., and have been licensed for use by the Schwab S&P 500 Fund. The Schwab S&P 500 Fund is not sponsored, endorsed, sold or promoted by Standard & Poor's, and Standard & Poor's makes no representation regarding the advisability of investing in the fund.

“The Dow Jones U.S. Total Stock Market Index^SM" measures the performance of all U.S. headquartered equity securities with readily available price data. It is not an investment product available for purchase. “Dow Jones” and “The Dow Jones U.S. Total Stock Market Index^SM” are service marks of Dow Jones & Company, Inc. The fund is not sponsored, endorsed, sold or promoted by Dow Jones and Dow Jones makes no representation regarding the advisability of investing in the fund.

Index ownership—"Dow Jones" and "The Dow Jones U.S. Total Stock Market Index^SM" are service marks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Charles Schwab Investment Management, Inc. The Schwab Total Stock Market Index Fund®, based on The Dow Jones U.S. Total Stock Market Index^SM, is not sponsored, endorsed, sold or promoted by Dow Jones and Dow Jones makes no representation regarding the advisability of investing in such product.

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can view, download and print a prospectus by clicking on Prospectuses & Reports. Please read the prospectus carefully before investing.

Diversification does not eliminate the risk of market losses.

Historically, small capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility than other funds that provide broader diversification. International investing involves special risks such as currency fluctuation and political instability.

Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly.

Trades in no-load mutual funds available through Mutual Funds OneSource service (including SchwabFunds) as well as certain other funds, are available without transaction fees when placed through schwab.com or our automated phone channels. For each of these trade orders placed through a broker, a $25 service charge applies. Schwab reserves the right to change the funds we make available without transaction fees and to reinstate fees on any funds. Funds are also subject to management fees and expenses.