0001193125-12-411377.txt : 20121001 0001193125-12-411377.hdr.sgml : 20121001 20121001163640 ACCESSION NUMBER: 0001193125-12-411377 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 7 FILED AS OF DATE: 20121001 DATE AS OF CHANGE: 20121001 EFFECTIVENESS DATE: 20121001 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCHWAB STRATEGIC TRUST CENTRAL INDEX KEY: 0001454889 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 333-160595 FILM NUMBER: 121120323 BUSINESS ADDRESS: STREET 1: 211 MAIN STREET STREET 2: CHARLES SCHWAB INVESTMENT MANAGEMENT,INC CITY: SAN FRANCISCO STATE: CA ZIP: 94105 BUSINESS PHONE: 800-648-5300 MAIL ADDRESS: STREET 1: 211 MAIN STREET STREET 2: CHARLES SCHWAB INVESTMENT MANAGEMENT,INC CITY: SAN FRANCISCO STATE: CA ZIP: 94105 FORMER COMPANY: FORMER CONFORMED NAME: Schwab Strategic Trust DATE OF NAME CHANGE: 20090127 0001454889 S000026631 Schwab U.S. Broad Market ETF C000079978 Schwab U.S. Broad Market ETF SCHB 0001454889 S000026632 Schwab U.S. Large-Cap ETF C000079979 Schwab U.S. Large-Cap ETF SCHX 0001454889 S000026633 Schwab U.S. Large-Cap Growth ETF C000079980 Schwab U.S. Large-Cap Growth ETF SCHG 0001454889 S000026634 Schwab U.S. Large-Cap Value ETF C000079981 Schwab U.S. Large-Cap Value ETF SCHV 0001454889 S000026635 Schwab U.S. Mid-Cap ETF C000079982 Schwab U.S. Mid-Cap ETF SCHM 0001454889 S000026636 Schwab U.S. Small-Cap ETF C000079983 Schwab U.S. Small-Cap ETF SCHA 0001454889 S000026637 Schwab International Equity ETF C000079984 Schwab International Equity ETF SCHF 0001454889 S000026638 Schwab International Small-Cap Equity ETF C000079985 Schwab International Small-Cap Equity ETF SCHC 0001454889 S000026639 Schwab Emerging Markets Equity ETF C000079986 Schwab Emerging Markets Equity ETF SCHE 0001454889 S000029407 Schwab U.S. TIPS ETF C000090317 Schwab U.S. TIPS ETF SCHP 0001454889 S000029408 Schwab Short-Term U.S. Treasury ETF C000090318 Schwab Short-Term U.S. Treasury ETF SCHO 0001454889 S000029409 Schwab Intermediate-Term U.S. Treasury ETF C000090319 Schwab Intermediate-Term U.S. Treasury ETF SCHR 0001454889 S000030518 Schwab U.S. REIT ETF C000094080 Schwab U.S. REIT ETF SCHH 0001454889 S000033156 Schwab U.S. Aggregate Bond ETF C000102078 Schwab U.S. Aggregate Bond ETF SCHZ 0001454889 S000034163 Schwab U.S. Dividend Equity ETF C000105320 Schwab U.S. Dividend Equity ETF SCHD 497 1 d403516d497.htm 497 497

October 1, 2012

VIA EDGAR

Securities and Exchange Commission

100 F Street, NE

Washington, DC 20549

 

   Re:   

Schwab U.S. Broad Market ETF

Schwab U.S. Large-Cap ETF

Schwab U.S. Large-Cap Growth ETF

Schwab U.S. Large-Cap Value ETF

Schwab U.S. Mid-Cap ETF

Schwab U.S. Small-Cap ETF

Schwab U.S. Dividend Equity ETF
(collectively, the “Schwab U.S. ETFs”)

 

Schwab International Equity ETF

Schwab International Small-Cap Equity ETF

Schwab Emerging Markets Equity ETF
(collectively, the “Schwab International ETFs”)

 

Schwab U.S. TIPS ETF

Schwab Short-Term U.S. Treasury ETF

Schwab Intermediate-Term U.S. Treasury ETF

Schwab U.S. Aggregate Bond ETF
(collectively, the “Schwab Fixed-Income ETFs”)

 

Schwab U.S. REIT ETF

 

each a series of Schwab Strategic Trust

          (File Nos. 333-160595 and 811-22311)

Ladies and Gentlemen:

On behalf of Schwab Strategic Trust, attached for filing are exhibits containing interactive data format risk/return summary information that mirrors the risk/return summary information in the Prospectuses with respect to (1) the Schwab U.S. ETFs and the Schwab International ETFs, each dated December 17, 2011, as amended September 20, 2012, (2) the Schwab Fixed-Income ETFs, dated April 30, 2012, as amended September 20, 2012, and (3) the Schwab U.S. REIT ETF, dated June 28, 2012, as amended September 20, 2012, filed pursuant to Rule 497(e) under the Securities Act of 1933, (the “497 Filing”). The purpose of this filing is to submit the 497 Filing in XBRL for the Funds.

Any questions or comments on the 497 Filing should be directed to the undersigned at (720) 785-8524.

 

      Very truly yours,
     

/s/ Robin R. Nesbitt

      Robin R. Nesbitt
      Director and Corporate Counsel
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0001454889 sst2:S000033156Member sst2:C000102078Member 2011-09-21 2012-09-20 pure iso4217:USD <u><font style="FONT-FAMILY: arial" size="2"><b>Expenses on a $10,000 investment</b></font></u> <u><font style="FONT-FAMILY: arial" size="2"><b>Expenses on a $10,000 investment</b></font></u> <u><font style="FONT-FAMILY: arial" size="2"><b>Expenses on a $10,000 investment</b></font></u> <u><font style="FONT-FAMILY: arial" size="2"><b>Expenses on a $10,000 investment</b></font></u> <u><font style="FONT-FAMILY: arial" size="2"><b>Expenses on a $10,000 investment</b></font></u> <u><font style="FONT-FAMILY: arial" size="2"><b>Expenses on a $10,000 investment</b></font></u> <u><font style="FONT-FAMILY: arial" size="2"><b>Expenses on a $10,000 investment</b></font></u> <u><font style="FONT-FAMILY: arial" size="2"><b>Expenses on a $10,000 investment</b></font></u> <u><font style="FONT-FAMILY: arial" size="2"><b>Expenses on a $10,000 investment</b></font></u> <u><font style="FONT-FAMILY: arial" size="2"><b>Expenses on a $10,000 investment</b></font></u> <u><font style="FONT-FAMILY: arial" size="2"><b>Expenses on a $10,000 investment</b></font></u> <u><font style="FONT-FAMILY: arial" size="2"><b>Expenses on a $10,000 investment</b></font></u> <u><font style="FONT-FAMILY: arial" size="2"><b>Expenses on a $10,000 investment</b></font></u> <u><font style="FONT-FAMILY: arial" size="2"><b>Expenses on a $10,000 investment</b></font></u> <font style="FONT-FAMILY: arial" size="2"><b>Annual fund operating expenses</b> (expenses that you pay each year as a % of the value of your investment)</font> 23 23 <u><font style="FONT-FAMILY: arial" size="2"><b>Annual fund operating expenses</b> (expenses that you pay each year as a % of the value of your investment)</font></u> 40 40 40 57 51 113 85 40 45 57 40 <u><font style="FONT-FAMILY: arial" size="2"><b>Expenses on a $10,000 investment</b></font></u> SCHWAB STRATEGIC TRUST Other 4 13 4 7 <u><font style="FONT-FAMILY: arial" size="2"><b>Annual fund operating expenses</b> (expenses that you pay each year as a % of the value of your investment)</font></u> 7 <u><font style="FONT-FAMILY: arial" size="2"><b>Annual fund operating expenses</b> (expenses that you pay each year as a % of the value of your investment)</font></u> 7 <u><font style="FONT-FAMILY: arial" size="2"><b>Annual fund operating expenses</b> (expenses that you pay each year as a % of the value of your investment)</font></u> 10 <u><font style="FONT-FAMILY: arial" size="2"><b>Annual fund operating expenses</b> (expenses that you pay each year as a % of the value of your investment)</font></u> <u><font style="FONT-FAMILY: arial" size="2"><b>Annual fund operating expenses</b> (expenses that you pay each year as a % of the value of your investment)</font></u> 7 9 <font style="FONT-FAMILY: arial" size="2"><b>Annual fund operating expenses</b> (expenses that you pay each year as a % of the value of your investment)</font> 20 <u><font style="FONT-FAMILY: arial" size="2"><b>Annual fund operating expenses</b> (expenses that you pay each year as a % of the value of your investment)</font></u> 15 <u><font style="FONT-FAMILY: arial" size="2"><b>Annual fund operating expenses</b> (expenses that you pay each year as a % of the value of your investment)</font></u> 7 <u><font style="FONT-FAMILY: arial" size="2"><b>Annual fund operating expenses</b> (expenses that you pay each year as a % of the value of your investment)</font></u> 8 <u><font style="FONT-FAMILY: arial" size="2"><b>Annual fund operating expenses</b> (expenses that you pay each year as a % of the value of your investment)</font></u> 10 <u><font style="FONT-FAMILY: arial" size="2"><b>Annual fund operating expenses</b> (expenses that you pay each year as a % of the value of your investment)</font></u> 5 <u><font style="FONT-FAMILY: arial" size="2"><b>Annual fund operating expenses</b> (expenses that you pay each year as a % of the value of your investment)</font></u> 7 <u><font style="FONT-FAMILY: arial" size="2"><b>Annual fund operating expenses</b> (expenses that you pay each year as a % of the value of your investment)</font></u> 2012-09-20 0001454889 2012-09-20 false 2012-09-20 0.0004 0 0.0004 0.0004 0 0.0004 13 0.0007 0 0.0007 23 0.0007 0 0.0007 23 0.0007 0 0.0007 23 0.001 0 0.001 32 0.0007 0 0.0007 23 0.0009 0 0.0009 29 0.002 0 0.002 64 0.0015 0 0.0015 48 0.0007 0 0.0007 23 0.0008 0 0.0008 26 0.001 0 0.001 32 0.0005 0 0.0005 16 0.0007 0 0.0007 23 2012-09-20 51 51 90 90 90 128 115 255 192 90 103 128 90 <p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 10px; margin-bottom: 0px; "><font size="3"><b>Schwab U.S. ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Schwab U.S. Broad Market ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap Growth ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap Value ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Mid-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Small-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Dividend Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each, a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated December&nbsp;17, 2011</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 12px; margin-bottom: 0px; "><font size="2"><b>This supplement provides new and additional information beyond that contained in</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>the Prospectus and should be read in conjunction with the Prospectus.</b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Effective September&nbsp;20, 2012, the management fee of each Fund has been reduced, as follows:</font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="52%"></td><td valign="bottom" width="22%"></td><td></td><td></td><td></td><td valign="bottom" width="22%"></td><td></td><td></td><td></td></tr><tr><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" colspan="2" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">Current&nbsp;Management&nbsp;Fees</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" colspan="2" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">New&nbsp;Management&nbsp;Fees</font></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Schwab U.S. Broad Market ETF</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.06</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.04</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Schwab U.S. Large-Cap ETF</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.08</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.04</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Schwab U.S. Large-Cap Growth ETF</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.13</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Schwab U.S. Large-Cap Value ETF</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.13</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Schwab U.S. Mid-Cap ETF</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.13</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Schwab U.S. Small-Cap ETF</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.13</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.10</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Schwab U.S. Dividend Equity ETF</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.17</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 12px; margin-bottom: 0px; "><font size="2">Accordingly, the following changes to the Prospectus are effective September&nbsp;20, 2012:</font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i>1.&nbsp;<u>Schwab U.S. Broad Market ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 1 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr bgcolor="#cceeff"><td valign="top" colspan="4"><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></td><td valign="top"><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2"></font></b><font size="2"><b>&nbsp;&nbsp;</b></font></font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.04</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.04</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td height="5" colspan="7"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10&nbsp;years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$4</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$13</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$23</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$51</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; page-break-before: always; "></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b><i>2.&nbsp;<u>Schwab U.S. Large-Cap ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 5 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.04</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.04</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1 year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10 years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$4</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$13</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$23</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$51</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i>3.&nbsp;<u>Schwab U.S. Large-Cap Growth ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 9 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.07</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="26%"></td><td valign="bottom" width="2%"></td><td width="23%"></td><td valign="bottom" width="2%"></td><td width="23%"></td><td valign="bottom" width="2%"></td><td width="22%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10&nbsp;years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$7</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$23</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$40</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$90</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i>4.&nbsp;<u>Schwab U.S. Large-Cap Value ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 13 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.07</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1 year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10 years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$7</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$23</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$40</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$90</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; page-break-before: always; "></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b><i>5.&nbsp;<u>Schwab U.S. Mid-Cap ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 17 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.07</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1 year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10 years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$7</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$23</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$40</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$90</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i>6.&nbsp;<u>Schwab U.S. Small-Cap ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 20 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.10</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.10</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1 year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10 years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$10</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$32</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$57</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$128</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i>7.&nbsp;<u>Schwab U.S. Dividend Equity ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 24 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.07</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td height="5" colspan="7"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="top" align="center"><font size="2" style="font-family: arial; ">$7</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$23</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"></td></tr></table><br/><br/><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><b>Schwab International ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab International Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab International Small-Cap Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab Emerging Markets Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated December&nbsp;17, 2011</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 12px; margin-bottom: 0px; "><font size="2"><b>This supplement provides new and additional information beyond that contained in</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>the Prospectus and should be read in conjunction with the Prospectus.</b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 6px; margin-bottom: 0px; "><font size="2">Effective September&nbsp;20, 2012, the management fee of each Fund has been reduced, as follows:</font></p><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="47%"></td><td valign="bottom" width="19%"></td><td></td><td></td><td></td><td valign="bottom" width="24%"></td><td></td><td></td><td></td></tr><tr><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" colspan="2" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">Current&nbsp;Management&nbsp;Fees</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom" colspan="2" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">New&nbsp;Management&nbsp;Fees</font></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Schwab International Equity ETF</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.13%</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.09%</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Schwab International Small-Cap Equity ETF</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.35%</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.20%</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Schwab Emerging Markets Equity ETF</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.25%</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.15%</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 12px; margin-bottom: 0px; "><font size="2">Accordingly, the following changes to the Prospectus are effective September&nbsp;20, 2012:</font></p><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i>1.&nbsp;<u>Schwab International Equity ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 1 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="4%"></td></tr><tr bgcolor="#cceeff"><td valign="top" colspan="4"><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></td><td valign="top"><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2"></font></b><font size="2"><b>&nbsp;&nbsp;</b></font></font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.09</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.09</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; text-align: start; font-size: 18px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10&nbsp;years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$9</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$29</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$51</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$115</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i>2.&nbsp;<u>Schwab International Small-Cap Equity ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section page 5 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="4%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.20</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.20</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; page-break-before: always; "></p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10&nbsp;years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$20</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$64</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$113</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$255</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i>3.&nbsp;<u>Schwab Emerging Markets Equity ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 9 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="4%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.15</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.15</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10&nbsp;years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$15</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$48</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$85</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$192</font></td></tr></table><br/><br/><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><b>Schwab Fixed-Income ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. TIPS ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab Short-Term U.S. Treasury ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab Intermediate-Term U.S. Treasury</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Aggregate Bond ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated April&nbsp;30, 2012</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 12px; margin-bottom: 0px; "><font size="2"><b>This supplement provides new and additional information beyond that contained in the Prospectus and should be read in conjunction with the Prospectus.</b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 6px; margin-bottom: 0px; "><font size="2">Effective September&nbsp;20, 2012, the management fee of each Fund has been reduced, as follows:</font></p><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style="border-collapse: collapse; "><tr><td width="48%"></td><td valign="bottom" width="23%"></td><td></td><td></td><td></td><td valign="bottom" width="25%"></td><td></td><td></td><td></td></tr><tr><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" colspan="2" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">Current&nbsp;Management&nbsp;Fees</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom" colspan="2" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">New&nbsp;Management&nbsp;Fees</font></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Schwab U.S. TIPS ETF</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.14</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Schwab Short-Term U.S. Treasury ETF</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.12</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.08</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Schwab Intermediate-Term U.S. Treasury</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.12</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.10</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Schwab U.S. Aggregate Bond ETF</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.10</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.05</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 12px; margin-bottom: 0px; "><font size="2">Accordingly, the following changes to the Prospectus are effective September&nbsp;20, 2012:</font></p><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i>1.&nbsp;<u>Schwab U.S. TIPS ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 1 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style="border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.07</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style="border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10&nbsp;years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$7</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$23</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$40</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$90</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i>2.&nbsp;<u>Schwab Short-Term U.S. Treasury ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 5 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style="border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.08</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.08</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; page-break-before: always; "></p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style="border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1 year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10 years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$8</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$26</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$45</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$103</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i>3.&nbsp;<u>Schwab Intermediate-Term U.S. Treasury ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 8 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style="border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.10</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.10</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style="border-collapse: collapse; "><tr><td width="26%"></td><td valign="bottom" width="2%"></td><td width="23%"></td><td valign="bottom" width="2%"></td><td width="23%"></td><td valign="bottom" width="2%"></td><td width="22%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10&nbsp;years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$10</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$32</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$57</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$128</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i>4.&nbsp;<u>Schwab U.S. Aggregate Bond ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 11 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style="border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.05</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.05</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style="border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td height="5" colspan="7"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="top" align="center"><font size="2" style="font-family: arial; ">$5</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$16</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"></td></tr></table><br/><br/><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><b>Schwab U.S. REIT ETF</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated June&nbsp;28, 2012</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(the "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 12px; margin-bottom: 0px; "><font size="2"><b>This supplement provides new and additional information beyond that contained in</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>the Prospectus and should be read in conjunction with the Prospectus.</b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 6px; margin-bottom: 0px; "><font size="2">Effective September&nbsp;20, 2012, the management fee of the Fund has been reduced, as follows:</font></p><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="46%"></td><td valign="bottom" width="24%"></td><td></td><td></td><td></td><td valign="bottom" width="26%"></td><td></td><td></td><td></td></tr><tr><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" colspan="2" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">Current&nbsp;Management&nbsp;Fees</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom" colspan="2" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">New&nbsp;Management&nbsp;Fees</font></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Schwab U.S. REIT ETF</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.13</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">%&nbsp;</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 12px; margin-bottom: 0px; "><font size="2">Accordingly, the following changes to the Prospectus are effective September&nbsp;20, 2012:</font></p><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>1. The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 1 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="4%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.07</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10&nbsp;years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$7</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$23</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$40</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$90</font></td></tr></table> <p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 10px; margin-bottom: 0px; "><font size="3"><b>Schwab U.S. ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Schwab U.S. Broad Market ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap Growth ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap Value ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Mid-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Small-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Dividend Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each, a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated December&nbsp;17, 2011</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "></p><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i><u>Schwab U.S. Broad Market ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 1 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr bgcolor="#cceeff"><td valign="top" colspan="4"><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></td><td valign="top"><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2"></font></b><font size="2"><b>&nbsp;&nbsp;</b></font></font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.04</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr><td valign="top"><p style="margin-left: 1em; text-indent: -1em; "><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></p></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.04</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; text-align: start; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td height="5" colspan="7"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10&nbsp;years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$4</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$13</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$23</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$51</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; text-align: start; page-break-before: always; "></p><p></p><p></p><p></p><p></p><p></p><p></p> <p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 10px; margin-bottom: 0px; "><font size="3"><b>Schwab U.S. ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Schwab U.S. Broad Market ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap Growth ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap Value ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Mid-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Small-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Dividend Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each, a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated December&nbsp;17, 2011</font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b><i><u>Schwab U.S. Large-Cap ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 5 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.04</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.04</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1 year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10 years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$4</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$13</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$23</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$51</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "></p> <p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 10px; margin-bottom: 0px; "><font size="3"><b>Schwab U.S. ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Schwab U.S. Broad Market ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap Growth ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap Value ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Mid-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Small-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Dividend Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each, a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated December&nbsp;17, 2011</font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i><u>Schwab U.S. Large-Cap Growth ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 9 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.07</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="26%"></td><td valign="bottom" width="2%"></td><td width="23%"></td><td valign="bottom" width="2%"></td><td width="23%"></td><td valign="bottom" width="2%"></td><td width="22%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10&nbsp;years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$7</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$23</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$40</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$90</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "></p> <p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 10px; margin-bottom: 0px; "><font size="3"><b>Schwab U.S. ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Schwab U.S. Broad Market ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap Growth ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap Value ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Mid-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Small-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Dividend Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each, a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated December&nbsp;17, 2011</font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i><u>Schwab U.S. Large-Cap Value ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 13 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.07</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1 year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10 years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$7</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$23</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$40</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$90</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; page-break-before: always; "></p> <p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 10px; margin-bottom: 0px; "><font size="3"><b>Schwab U.S. ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Schwab U.S. Broad Market ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap Growth ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap Value ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Mid-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Small-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Dividend Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each, a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated December&nbsp;17, 2011</font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b><i><u>Schwab U.S. Mid-Cap ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 17 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.07</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1 year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10 years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$7</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$23</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$40</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$90</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "></p> <p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 10px; margin-bottom: 0px; "><font size="3"><b>Schwab U.S. ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Schwab U.S. Broad Market ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap Growth ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap Value ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Mid-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Small-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Dividend Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each, a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated December&nbsp;17, 2011</font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i><u>Schwab U.S. Small-Cap ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 20 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.10</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.10</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1 year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10 years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$10</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$32</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$57</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$128</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "></p> <p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 10px; margin-bottom: 0px; "><font size="3"><b>Schwab U.S. ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Schwab U.S. Broad Market ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap Growth ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Large-Cap Value ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Mid-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Small-Cap ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Dividend Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each, a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated December&nbsp;17, 2011</font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i><u>Schwab U.S. Dividend Equity ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 24 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.07</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td height="5" colspan="7"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="top" align="center"><font size="2" style="font-family: arial; ">$7</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$23</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; page-break-before: always; "></p> <p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><b>Schwab International ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab International Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab International Small-Cap Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab Emerging Markets Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated December&nbsp;17, 2011</font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i><u>Schwab International Equity ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 1 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="4%"></td></tr><tr bgcolor="#cceeff"><td valign="top" colspan="4"><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></td><td valign="top"><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2"></font></b><font size="2"><b>&nbsp;&nbsp;</b></font></font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.09</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.09</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 18px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10&nbsp;years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$9</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$29</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$51</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$115</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "></p> <p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><b>Schwab International ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab International Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab International Small-Cap Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab Emerging Markets Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated December&nbsp;17, 2011</font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i><u>Schwab International Small-Cap Equity ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section page 5 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="4%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.20</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.20</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; page-break-before: always; "></p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10&nbsp;years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$20</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$64</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$113</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$255</font></td></tr></table> <p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><b>Schwab International ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab International Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab International Small-Cap Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab Emerging Markets Equity ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated December&nbsp;17, 2011</font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i>&nbsp;<u>Schwab Emerging Markets Equity ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 9 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="4%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.15</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.15</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10&nbsp;years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$15</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$48</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$85</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$192</font></td></tr></table> <p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><b>Schwab Fixed-Income ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. TIPS ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab Short-Term U.S. Treasury ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab Intermediate-Term U.S. Treasury</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Aggregate Bond ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated April&nbsp;30, 2012</font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i><u>Schwab U.S. TIPS ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 1 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.07</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10&nbsp;years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$7</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$23</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$40</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$90</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "></p> <p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><b>Schwab Fixed-Income ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. TIPS ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab Short-Term U.S. Treasury ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab Intermediate-Term U.S. Treasury</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Aggregate Bond ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated April&nbsp;30, 2012</font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i><u>Schwab Short-Term U.S. Treasury ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 5 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.08</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.08</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; page-break-before: always; "></p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1 year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5 years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10 years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$8</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$26</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$45</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$103</font></td></tr></table> <p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><b>Schwab Fixed-Income ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. TIPS ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab Short-Term U.S. Treasury ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab Intermediate-Term U.S. Treasury</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Aggregate Bond ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated April&nbsp;30, 2012</font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i><u>Schwab Intermediate-Term U.S. Treasury ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 8 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.10</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.10</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="26%"></td><td valign="bottom" width="2%"></td><td width="23%"></td><td valign="bottom" width="2%"></td><td width="23%"></td><td valign="bottom" width="2%"></td><td width="22%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10&nbsp;years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$10</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$32</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$57</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$128</font></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "></p> <p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><b>Schwab Fixed-Income ETFs</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. TIPS ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab Short-Term U.S. Treasury ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab Intermediate-Term U.S. Treasury</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Schwab U.S. Aggregate Bond ETF</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(each a "Fund")</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated April&nbsp;30, 2012</font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "><font size="2"><b><i><u>Schwab U.S. Aggregate Bond ETF</u></i></b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 11 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="3%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.05</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.05</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td height="5" colspan="7"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="top" align="center"><font size="2" style="font-family: arial; ">$5</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$16</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom"></td></tr></table><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 18px; margin-bottom: 0px; "></p> <p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="3"><b>SCHWAB STRATEGIC TRUST</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><b>Schwab U.S. REIT ETF</b></font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Supplement dated September&nbsp;20, 2012 to the</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2">Prospectus dated June&nbsp;28, 2012</font></p><p align="center" style="font-family: 'Times New Roman'; font-size: medium; margin-top: 0px; margin-bottom: 0px; "><font size="2"><b>(the "Fund")</b></font></p><p style="font-family: 'Times New Roman'; font-size: medium; margin-top: 6px; margin-bottom: 0px; "><font size="2"><i>1. The "Annual fund operating expenses" and "Expenses on a $10,000 investment" tables under the "Fund fees and expenses" section on page 1 of the Prospectus are deleted and replaced in their entirety with the following:</i></font></p><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="90%"></td><td valign="bottom" width="3%"></td><td></td><td></td><td valign="bottom" width="4%"></td></tr><tr><td valign="bottom" colspan="4" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 475pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b><font size="2">Annual fund operating expenses&nbsp;</font></b><font size="2">(expenses that you pay each year as a % of the value of your investment)<b></b></font></font></p></td><td valign="bottom"><font size="1">&nbsp;</font></td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; ">Management fees</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; ">0.07</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr><td valign="top"><font size="2" style="font-family: arial; ">Other expenses</font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None</font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; ">&nbsp;&nbsp;</font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><font size="2" style="font-family: arial; "><b>Total annual operating expenses</b></font></td><td valign="bottom"><font size="1">&nbsp;&nbsp;</font></td><td valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;</b></font></td><td valign="bottom" align="right"><font size="2" style="font-family: arial; "><b>0.07</b></font></td><td nowrap="nowrap" valign="bottom"><font size="2" style="font-family: arial; "><b>&nbsp;&nbsp;</b></font></td></tr><tr style="font-size: 1px; "><td valign="bottom"></td><td valign="bottom">&nbsp;&nbsp;</td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td valign="bottom"><p style="border-top-width: 1px; border-top-style: solid; border-top-color: rgb(0, 0, 0); ">&nbsp;</p></td><td>&nbsp;</td></tr></table><p style="font-family: 'Times New Roman'; font-size: 12px; margin-top: 0px; margin-bottom: 0px; ">&nbsp;</p><table cellspacing="0" cellpadding="0" width="100%" border="0" align="center" style=" border-collapse: collapse; "><tr><td width="23%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="25%"></td><td valign="bottom" width="1%"></td><td width="24%"></td></tr><tr><td valign="bottom" colspan="7" nowrap="nowrap"><p style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); width: 161pt; "><font size="2" style="font-family: arial; "></font><font size="2" style="font-family: arial; "><b>Expenses on a $10,000 investment</b></font></p></td></tr><tr><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">1&nbsp;year</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">3&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">5&nbsp;years</font></td><td valign="bottom" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="1">&nbsp;</font></td><td valign="bottom" align="center" style="border-bottom-width: 1px; border-bottom-style: solid; border-bottom-color: rgb(0, 0, 0); "><font size="2" style="font-family: arial; ">10&nbsp;years</font></td></tr><tr bgcolor="#cceeff"><td valign="top" align="center"><font size="2" style="font-family: arial; ">$7</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$23</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; ">$40</font></td><td valign="bottom"><font size="1">&nbsp;</font></td><td valign="bottom" align="center"><font size="2" style="font-family: arial; 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