Charles Schwab Investment Management, Inc.
211 Main Street
San Francisco, CA 94105
April 15, 2020
VIA EDGAR
Securities and Exchange Commission
100 F Street, NE
Washington, D.C. 20549
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Schwab U.S. REIT ETF |
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(the Fund) a series of Schwab Strategic Trust (the Registrant) |
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(File Nos. 333-160595 and 811-22311) |
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Ladies and Gentlemen:
On behalf of the Registrant and filed pursuant to Rule 497(e) under the Securities Act of 1933, as amended, attached for filing are exhibits containing interactive data format risk/return summary information that mirrors the risk/return summary information in the 497 dated April 3, 2020 to the Fund’s prospectus, dated June 28, 2019, as supplemented. The purpose of this filing is to submit, in XBRL, the 497 dated April 3, 2020.
Any questions or comments on this filing should be directed to the undersigned at (720) 418-2441.
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Respectfully, |
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/s/ Robin Nesbitt |
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Robin Nesbitt |
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Corporate Counsel |
| Label | Element | Value |
|---|---|---|
| Risk/Return: | rr_RiskReturnAbstract | |
| Registrant Name | dei_EntityRegistrantName | SCHWAB STRATEGIC TRUST |
| Prospectus Date | rr_ProspectusDate | Jun. 28, 2019 |
| Document Creation Date | dei_DocumentCreationDate | Apr. 03, 2020 |
| Label | Element | Value |
|---|---|---|
| Risk/Return: | rr_RiskReturnAbstract | |
| Document Type | dei_DocumentType | 497 |
| Document Period End Date | dei_DocumentPeriodEndDate | Feb. 28, 2019 |
| Registrant Name | dei_EntityRegistrantName | SCHWAB STRATEGIC TRUST |
| Central Index Key | dei_EntityCentralIndexKey | 0001454889 |
| Amendment Flag | dei_AmendmentFlag | false |
| Document Creation Date | dei_DocumentCreationDate | Apr. 03, 2020 |
| Document Effective Date | dei_DocumentEffectiveDate | Apr. 03, 2020 |
| Prospectus Date | rr_ProspectusDate | Jun. 28, 2019 |
| Entity Inv Company Type | dei_EntityInvCompanyType | N-1A |
| Label | Element | Value | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Risk/Return: | rr_RiskReturnAbstract | ||||||||
| Registrant Name | dei_EntityRegistrantName | SCHWAB STRATEGIC TRUST | |||||||
| Prospectus Date | rr_ProspectusDate | Jun. 28, 2019 | |||||||
| Supplement to Prospectus [Text Block] | rr_SupplementToProspectusTextBlock | SCHWAB STRATEGIC TRUST (the Trust) Schwab® U.S. REIT ETF (the fund) Supplement dated April 3, 2020 to the fund’s currently effective Summary Prospectus, Statutory Prospectus and Statement of Additional Information (SAI)
This supplement provides new and additional information beyond that contained in the Summary Prospectus, Statutory Prospectus and SAI and should be read in conjunction with the Summary Prospectus, Statutory Prospectus and SAI. At a meeting held on March 20, 2020, the Board of Trustees of the Trust approved a change to the fund’s index from the Dow Jones U.S. Select REIT Index to the Dow Jones Equity All REIT Capped Index as well as changes to (1) the fund’s investment objective, which is non-fundamental, and (2) the fund’s investment strategy. These changes, which are summarized below, will be effective on or about June 22, 2020. Please note that no shareholder action is required. The index is new and therefore does not have historical performance.
The fund’s goal is to track as closely as possible, before fees and expenses, the total return of an index composed of U.S. real estate investment trusts classified as equities.
To pursue its goal, the fund generally invests in securities that are included in the Dow Jones Equity All REIT Capped Index†. The index is float-adjusted market capitalization weighted index that is subject to capping constraints at each quarterly rebalancing. The index generally includes all publicly traded equity real estate investment trusts (REITs) with a minimum float-adjusted market capitalization of $200 million and a three-month median daily value traded of at least $5 million. A security becomes ineligible if its float-adjusted market capitalization falls below $100 million for two consecutive quarters. The index excludes mortgage REITs, defined as REITs that lend money directly to real estate owners and/or operators or indirectly through the purchase of mortgages or mortgage-backed securities, and hybrid REITs, defined as REITs that participate both in equity and mortgage investing. The index uses a capping methodology to limit the weight of the securities of any single issuer (as determined by the index provider) to a maximum of 10% of the index. Additionally, the capping methodology limits the sum of the weights of the securities of all issuers that individually constitute more than 4.5% of the weight of the index to a maximum of 22.5% of the weight of the index in the aggregate. In order to implement this capping methodology, the index constrains at quarterly rebalance: (i) the weight of any single issuer to a maximum of 10%, and (ii) the aggregate weight of all issuers that individually exceed 4.50% of the index weight to a maximum of 22.50%. Between scheduled quarterly index reviews, the index is reviewed daily to assess whether the sum of all individual constituents with more than 5% of the weight of the index exceeds more than 25% of the weight of the index in the aggregate. When daily capping is necessary, the changes are announced after the close of the business day on which the daily weight caps are exceeded, with the reference date after the close of that same business day, and changes are effective after the close of the next trading day.
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| Schwab U.S. REIT ETF | |||||||||
| Risk/Return: | rr_RiskReturnAbstract | ||||||||
| Supplement to Prospectus [Text Block] | rr_SupplementToProspectusTextBlock | SCHWAB STRATEGIC TRUST (the Trust) Schwab® U.S. REIT ETF (the fund) Supplement dated April 3, 2020 to the fund’s currently effective Summary Prospectus, Statutory Prospectus and Statement of Additional Information (SAI)
This supplement provides new and additional information beyond that contained in the Summary Prospectus, Statutory Prospectus and SAI and should be read in conjunction with the Summary Prospectus, Statutory Prospectus and SAI. At a meeting held on March 20, 2020, the Board of Trustees of the Trust approved a change to the fund’s index from the Dow Jones U.S. Select REIT Index to the Dow Jones Equity All REIT Capped Index as well as changes to (1) the fund’s investment objective, which is non-fundamental, and (2) the fund’s investment strategy. These changes, which are summarized below, will be effective on or about June 22, 2020. Please note that no shareholder action is required. The index is new and therefore does not have historical performance.
The fund’s goal is to track as closely as possible, before fees and expenses, the total return of an index composed of U.S. real estate investment trusts classified as equities.
To pursue its goal, the fund generally invests in securities that are included in the Dow Jones Equity All REIT Capped Index†. The index is float-adjusted market capitalization weighted index that is subject to capping constraints at each quarterly rebalancing. The index generally includes all publicly traded equity real estate investment trusts (REITs) with a minimum float-adjusted market capitalization of $200 million and a three-month median daily value traded of at least $5 million. A security becomes ineligible if its float-adjusted market capitalization falls below $100 million for two consecutive quarters. The index excludes mortgage REITs, defined as REITs that lend money directly to real estate owners and/or operators or indirectly through the purchase of mortgages or mortgage-backed securities, and hybrid REITs, defined as REITs that participate both in equity and mortgage investing. The index uses a capping methodology to limit the weight of the securities of any single issuer (as determined by the index provider) to a maximum of 10% of the index. Additionally, the capping methodology limits the sum of the weights of the securities of all issuers that individually constitute more than 4.5% of the weight of the index to a maximum of 22.5% of the weight of the index in the aggregate. In order to implement this capping methodology, the index constrains at quarterly rebalance: (i) the weight of any single issuer to a maximum of 10%, and (ii) the aggregate weight of all issuers that individually exceed 4.50% of the index weight to a maximum of 22.50%. Between scheduled quarterly index reviews, the index is reviewed daily to assess whether the sum of all individual constituents with more than 5% of the weight of the index exceeds more than 25% of the weight of the index in the aggregate. When daily capping is necessary, the changes are announced after the close of the business day on which the daily weight caps are exceeded, with the reference date after the close of that same business day, and changes are effective after the close of the next trading day.
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