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Mentions of individual stocks in the ETF descriptions section are for illustrative purposes only and are not a recommendation to buy, hold or sell any specific security.

Many Fixed-income securities are subject to increased loss of principal during periods of rising interest rates. Fixed-income investments are subject to various other risks, including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. The lower-rated securities in which some bond funds invest are subject to greater credit risk, default risk and liquidity risk.

ETFs at Charles Schwab & Co., Inc. ("Schwab") which are U.S. exchange-listed can be traded without a commission on buy and sell transactions made online in a Schwab account. Unlisted ETFs are subject to a commission. Trade orders placed through a broker will receive the negotiated broker-assisted rate. An exchange process fee applies to sell transactions. All ETFs are subject to management fees and expenses. Please see the Charles Schwab Pricing Guide for additional information. Schwab's affiliate Charles Schwab Investment Management, Inc., dba Schwab Asset Management, serves as the investment adviser to the Schwab ETFs, which compensates Schwab Asset Management out of the applicable operating expense ratios. The amount of the fees is disclosed in the prospectus of each ETF.

Schwab receives remuneration from third-party active semi-transparent (also known as non-transparent) ETFs or their sponsors for platform support and technology, shareholder communications, reporting, and similar administrative services for third-party active semi-transparent ETFs available at Schwab. This fee will vary, but typically is an asset-based fee of 0.10% per annum of the assets held at Schwab. Neither Schwab's affiliate Charles Schwab Investment Management, Inc., dba Schwab Asset Management nor Schwab active semi-transparent ETFs pay a separate fee to Schwab for these services described, although Schwab Asset Management reimburses Schwab, in its capacity as an affiliated financial intermediary of CSIM's, for Schwab's costs in providing certain professional, administrative, and support services for the Schwab ETFs.

Government bond fund shares are not guaranteed. Their price and investment return will fluctuate with market conditions and interest rates. Shares, when redeemed, may be worth more or less than their original cost.

International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, political instability, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.

Risks of REITs are similar to those associated with direct ownership of real estate, such as changes in real-estate values and property taxes, interest rates, cash flow of underlying real-estate assets, supply and demand, and the management skill and creditworthiness of the issuer.

Since a sector fund is typically not diversified and focuses its investments on companies involved in a specific sector, the fund may involve a greater degree of risk than an investment in other mutual funds with greater diversification.

Small-cap funds are subject to greater volatility than those in other asset categories.

High-yield funds invest in lower-rated securities. This subjects these funds to greater credit risk, default risk and liquidity risk.

Some specialized exchange-traded funds can be subject to additional market risks. Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF.

Commodity-related products, including futures, carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, illiquid and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions, regardless of the length of time shares are held. Investments in commodity-related products may subject the fund to significantly greater volatility than investments in traditional securities and involve substantial risks, including risk of loss of a significant portion of their principal value.

No mention of particular funds or fund families here should be construed as a recommendation or considered an offer to sell or a solicitation of an offer to buy any securities. This information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The securities listed may not be suitable for everyone. Each investor needs to review a securities transaction for his or her own particular situation. Schwab or its employees may sometimes hold positions in the securities listed here. Data contained here is obtained from what are considered reliable sources; however, its accuracy, completeness or reliability cannot be guaranteed.

Investment income on some tax-free/tax-exempt funds may be subject to certain state and local taxes and, depending on your status, the federal alternative minimum tax.

Charles Schwab Investment Management, Inc., ("CSIM") the investment advisor for the Schwab ETFs and an affiliate of Schwab, receives fees from the Schwab ETFs for investment advisory and fund administration services. The amount of fees CSIM receives from the Schwab ETFs is not considered in ETF Select List^® selection, nor do the Schwab ETFs or any third-party ETF, or any of their affiliates, pay Schwab to be included in the ETF Select List^®.

Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). The Dow Jones Total Stock Market, Dow Jones Real Estate and the Dow Jones Dividend Indices are products of S&P Dow Jones Indices LLC and/or its affiliates, and have been licensed for use by Charles Schwab Investment Management, Inc. (CSIM). FTSE® is a trade mark owned by the London Stock Exchange plc and is used by FTSE International Limited (FTSE) under license. The FTSE Global Equity Index Series is calculated by FTSE. Frank Russell Company (Russell) and Research Affiliates LLC (RA) have entered into a strategic alliance with respect to the Russell RAFI Index Series. Subject to RA's intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell RAFI Index Series. Russell and RA jointly own all trademark and service mark rights in and to the Russell RAFI Index Series. RA is the owner of certain intellectual property. The names identifying the Bloomberg Barclays' indices are trademarks and service marks of Bloomberg Finance L.P. and its affiliates (Bloomberg) and Barclays Bank PLC and its affiliates (Barclays) and have been licensed for use by CSIM in connection with the issuance, marketing and promotion of the Schwab ETFs. The Schwab ETFs are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices, FTSE, Russell, RA, Bloomberg, Barclays or their respective affiliates (together, the Index Sponsors) and the Index Sponsors do not make any representation regarding the advisability of trading in the Schwab ETFs. The Index Sponsors do not accept any obligations or liability in relation to the issuance, marketing, operation or trading of the Schwab ETFs. Neither Charles Schwab & Co., Inc, Charles Schwab Investment Advisory, Inc., or Charles Schwab Investment Management, Inc. (which are separate but affiliated companies and subsidiaries of the Charles Schwab Corporation) are affiliated with any Index Sponsor.

Indexes are the intellectual property of their providers. ETF sponsors generally enter into licensing agreements with index providers. For additional information about index licensing terms and conditions, please contact the ETF sponsor and/or index provider.

¹Charles Schwab Investment Advisory, Inc., a registered investment advisor, is an affiliate of Charles Schwab & Co., Inc.

Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with The Charles Schwab Corporation or any of its affiliates.

© 2019 Charles Schwab & Co., Inc. (Member SIPC) All rights reserved.

Environmental, social and governance (ESG) strategies implemented by mutual funds, exchange-traded funds (ETFs), and separately managed accounts are currently subject to inconsistent industry definitions and standards for the measurement and evaluation of ESG factors; therefore, such factors may differ significantly across strategies. As a result, it may be difficult to compare ESG investment products. Further, some issuers may present their investment products as employing an ESG strategy, but may overstate or inconsistently apply ESG factors. An investment product's ESG strategy may significantly influence its performance. Because securities may be included or excluded based on ESG factors rather than other investment methodologies, the product's performance may differ (either higher or lower) from the overall market or comparable products that do not have ESG strategies. Environmental ("E") factors can include climate change, pollution, waste, and how an issuer protects and/or conserves natural resources. Social ("S") factors can include how an issuer manages its relationships with individuals, such as its employees, shareholders, and customers as well as its community. Governance ("G") factors can include how an issuer operates, such as its leadership composition, pay and incentive structures, internal controls, and the rights of equity and debt holders. Carefully review an investment product's prospectus or disclosure brochure to learn more about how it incorporates ESG factors into its investment strategy.