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SCHWAB CAPITAL TRUST

Schwab Target Funds

Schwab Target 2010 Fund, Schwab Target 2015 Fund, Schwab Target 2020 Fund,

Schwab Target 2025 Fund, Schwab Target 2030 Fund, Schwab Target 2035 Fund,

Schwab Target 2040 Fund, Schwab Target 2045 Fund, Schwab Target 2050 Fund,

Schwab Target 2055 Fund and Schwab Target 2060 Fund

(collectively, the Funds)

Supplement dated May 26, 2017 to the

Prospectus dated February 28, 2017

This supplement provides new and additional information beyond that contained in

the Prospectus and should be read in conjunction with the Prospectus.

Effective May 26, 2017, the Annual fund operating expenses for each of the Funds are being restated to account for changes in the Acquired fund fees and expenses (AFFE) associated with each Fund’s investments in the underlying funds.

Accordingly, the following changes to the Prospectus are effective May 26, 2017:

1. Schwab Target 2010 Fund

The “Annual fund operating expenses” table, “Example” and “Expenses on a $10,000 investment” table under the “Fund fees and expenses” section on page 1 of the Prospectus are deleted and replaced in their entirety with the following:

 

Annual fund operating expenses (expenses that you pay each year as a % of the value of your investment)

Management fees

    None  

Distribution (12b-1) fees

    None  

Other expenses

    0.14  

Acquired fund fees and expenses (AFFE)1

    0.33  
 

 

 

 

Total annual fund operating expenses

    0.47  

Less expense reduction

    (0.14
 

 

 

 

Total annual fund operating expenses (including AFFE) after expense reduction2

    0.33  
 

 

 

 

 

  1

“Acquired fund fees and expenses (AFFE)” are based on estimated amounts for the current fiscal period.

  2 

The investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non-routine expenses) of the fund to 0.00% for so long as the investment adviser serves as the adviser to the fund. This agreement may only be amended or terminated with the approval of the fund’s Board of Trustees. This agreement is limited to the fund’s direct operating expenses and does not apply to AFFE.

 

Example

This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those time periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. The figures are based on total annual fund operating expenses (including AFFE) after expense reduction. The expenses would be the same whether you stayed in the fund or sold your shares at the end of each period. Your actual costs may be higher or lower.

 

Expenses on a $10,000 investment

 

1 year    3 years      5 years      10 years  
$34    $ 106      $ 185      $ 418  


2. Schwab Target 2015 Fund

The “Annual fund operating expenses” table, “Example” and “Expenses on a $10,000 investment” table under the “Fund fees and expenses” section on page 5 of the Prospectus are deleted and replaced in their entirety with the following:

 

Annual fund operating expenses (expenses that you pay each year as a % of the value of your investment)

Management fees

    None  

Distribution (12b-1) fees

    None  

Other expenses

    0.08  

Acquired fund fees and expenses (AFFE)1

    0.35  
 

 

 

 

Total annual fund operating expenses

    0.43  

Less expense reduction

    (0.08
 

 

 

 

Total annual fund operating expenses (including AFFE) after expense reduction2

    0.35  
 

 

 

 

 

  1

“Acquired fund fees and expenses (AFFE)” are based on estimated amounts for the current fiscal period.

  2 

The investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non-routine expenses) of the fund to 0.00% for so long as the investment adviser serves as the adviser to the fund. This agreement may only be amended or terminated with the approval of the fund’s Board of Trustees. This agreement is limited to the fund’s direct operating expenses and does not apply to AFFE.

 

Example

This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those time periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. The figures are based on total annual fund operating expenses (including AFFE) after expense reduction. The expenses would be the same whether you stayed in the fund or sold your shares at the end of each period. Your actual costs may be higher or lower.

 

Expenses on a $10,000 investment

 

1 year    3 years      5 years      10 years  
$36    $ 113      $ 197      $ 443  

3. Schwab Target 2020 Fund

The “Annual fund operating expenses” table, “Example” and “Expenses on a $10,000 investment” table under the “Fund fees and expenses” section on page 9 of the Prospectus are deleted and replaced in their entirety with the following:

 

Annual fund operating expenses (expenses that you pay each year as a % of the value of your investment)

Management fees

    None  

Distribution (12b-1) fees

    None  

Other expenses

    0.03  

Acquired fund fees and expenses (AFFE)1

    0.42  
 

 

 

 

Total annual fund operating expenses

    0.45  

Less expense reduction

    (0.03
 

 

 

 

Total annual fund operating expenses (including AFFE) after expense reduction2

    0.42  
 

 

 

 

 

  1

“Acquired fund fees and expenses (AFFE)” are based on estimated amounts for the current fiscal period.

  2 

The investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non-routine expenses) of the fund to 0.00% for so long as the investment adviser serves as the adviser to the fund. This agreement may only be amended or terminated with the approval of the fund’s Board of Trustees. This agreement is limited to the fund’s direct operating expenses and does not apply to AFFE.

 

2


Example

This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those time periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. The figures are based on total annual fund operating expenses (including AFFE) after expense reduction. The expenses would be the same whether you stayed in the fund or sold your shares at the end of each period. Your actual costs may be higher or lower.

 

Expenses on a $10,000 investment

 

1 year    3 years      5 years      10 years  
$43    $ 135      $ 235      $ 530  

4. Schwab Target 2025 Fund

The “Annual fund operating expenses” table, “Example” and “Expenses on a $10,000 investment” table under the “Fund fees and expenses” section on page 13 of the Prospectus are deleted and replaced in their entirety with the following:

 

Annual fund operating expenses (expenses that you pay each year as a % of the value of your investment)

Management fees

    None  

Distribution (12b-1) fees

    None  

Other expenses

    0.04  

Acquired fund fees and expenses (AFFE)1

    0.50  
 

 

 

 

Total annual fund operating expenses

    0.54  

Less expense reduction

    (0.04
 

 

 

 

Total annual fund operating expenses (including AFFE) after expense reduction2

    0.50  
 

 

 

 

 

  1

“Acquired fund fees and expenses (AFFE)” are based on estimated amounts for the current fiscal period.

  2 

The investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non-routine expenses) of the fund to 0.00% for so long as the investment adviser serves as the adviser to the fund. This agreement may only be amended or terminated with the approval of the fund’s Board of Trustees. This agreement is limited to the fund’s direct operating expenses and does not apply to AFFE.

 

Example

This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those time periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. The figures are based on total annual fund operating expenses (including AFFE) after expense reduction. The expenses would be the same whether you stayed in the fund or sold your shares at the end of each period. Your actual costs may be higher or lower.

 

Expenses on a $10,000 investment

 

1 year    3 years      5 years      10 years  
$51    $ 160      $ 280      $ 628  

 

3


5. Schwab Target 2030 Fund

The “Annual fund operating expenses” table, “Example” and “Expenses on a $10,000 investment” table under the “Fund fees and expenses” section on page 17 of the Prospectus are deleted and replaced in their entirety with the following:

 

Annual fund operating expenses (expenses that you pay each year as a % of the value of your investment)

Management fees

    None  

Distribution (12b-1) fees

    None  

Other expenses

    0.03  

Acquired fund fees and expenses (AFFE)1

    0.57  
 

 

 

 

Total annual fund operating expenses

    0.60  

Less expense reduction

    (0.03
 

 

 

 

Total annual fund operating expenses (including AFFE) after expense reduction2

    0.57  
 

 

 

 

 

  1

“Acquired fund fees and expenses (AFFE)” are based on estimated amounts for the current fiscal period.

  2 

The investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non-routine expenses) of the fund to 0.00% for so long as the investment adviser serves as the adviser to the fund. This agreement may only be amended or terminated with the approval of the fund’s Board of Trustees. This agreement is limited to the fund’s direct operating expenses and does not apply to AFFE.

 

Example

This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those time periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. The figures are based on total annual fund operating expenses (including AFFE) after expense reduction. The expenses would be the same whether you stayed in the fund or sold your shares at the end of each period. Your actual costs may be higher or lower.

 

Expenses on a $10,000 investment

 

1 year    3 years      5 years      10 years  
$58    $ 183      $ 318      $ 714  

6. Schwab Target 2035 Fund

The “Annual fund operating expenses” table, “Example” and “Expenses on a $10,000 investment” table under the “Fund fees and expenses” section on page 21 of the Prospectus are deleted and replaced in their entirety with the following:

 

Annual fund operating expenses (expenses that you pay each year as a % of the value of your investment)

Management fees

    None  

Distribution (12b-1) fees

    None  

Other expenses

    0.04  

Acquired fund fees and expenses (AFFE)1

    0.62  
 

 

 

 

Total annual fund operating expenses

    0.66  

Less expense reduction

    (0.04
 

 

 

 

Total annual fund operating expenses (including AFFE) after expense reduction2

    0.62  
 

 

 

 

 

  1

“Acquired fund fees and expenses (AFFE)” are based on estimated amounts for the current fiscal period.

  2 

The investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non-routine expenses) of the fund to 0.00% for so long as the investment adviser serves as the adviser to the fund. This agreement may only be amended or terminated with the approval of the fund’s Board of Trustees. This agreement is limited to the fund’s direct operating expenses and does not apply to AFFE.

 

4


Example

This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those time periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. The figures are based on total annual fund operating expenses (including AFFE) after expense reduction. The expenses would be the same whether you stayed in the fund or sold your shares at the end of each period. Your actual costs may be higher or lower.

 

Expenses on a $10,000 investment

 

1 year    3 years      5 years      10 years  
$63    $ 199      $ 346      $ 774  

7. Schwab Target 2040 Fund

The “Annual fund operating expenses” table, “Example” and “Expenses on a $10,000 investment” table under the “Fund fees and expenses” section on page 25 of the Prospectus are deleted and replaced in their entirety with the following:

 

Annual fund operating expenses (expenses that you pay each year as a % of the value of your investment)

Management fees

    None  

Distribution (12b-1) fees

    None  

Other expenses

    0.03  

Acquired fund fees and expenses (AFFE)1

    0.66  
 

 

 

 

Total annual fund operating expenses

    0.69  

Less expense reduction

    (0.03
 

 

 

 

Total annual fund operating expenses (including AFFE) after expense reduction2

    0.66  
 

 

 

 

 

  1

“Acquired fund fees and expenses (AFFE)” are based on estimated amounts for the current fiscal period.

  2 

The investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non-routine expenses) of the fund to 0.00% for so long as the investment adviser serves as the adviser to the fund. This agreement may only be amended or terminated with the approval of the fund’s Board of Trustees. This agreement is limited to the fund’s direct operating expenses and does not apply to AFFE.

 

Example

This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those time periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. The figures are based on total annual fund operating expenses (including AFFE) after expense reduction. The expenses would be the same whether you stayed in the fund or sold your shares at the end of each period. Your actual costs may be higher or lower.

 

Expenses on a $10,000 investment

 

1 year    3 years      5 years      10 years  
$67    $ 211      $ 368      $ 822  

 

5


8. Schwab Target 2045 Fund

The “Annual fund operating expenses” table, “Example” and “Expenses on a $10,000 investment” table under the “Fund fees and expenses” section on page 29 of the Prospectus are deleted and replaced in their entirety with the following:

 

Annual fund operating expenses (expenses that you pay each year as a % of the value of your investment)

Management fees

    None  

Distribution (12b-1) fees

    None  

Other expenses

    0.13  

Acquired fund fees and expenses (AFFE)1

    0.69  
 

 

 

 

Total annual fund operating expenses

    0.82  

Less expense reduction

    (0.13
 

 

 

 

Total annual fund operating expenses (including AFFE) after expense reduction2

    0.69  
 

 

 

 

 

  1

“Acquired fund fees and expenses (AFFE)” are based on estimated amounts for the current fiscal period.

  2 

The investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non-routine expenses) of the fund to 0.00% for so long as the investment adviser serves as the adviser to the fund. This agreement may only be amended or terminated with the approval of the fund’s Board of Trustees. This agreement is limited to the fund’s direct operating expenses and does not apply to AFFE.

 

Example

This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those time periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. The figures are based on total annual fund operating expenses (including AFFE) after expense reduction. The expenses would be the same whether you stayed in the fund or sold your shares at the end of each period. Your actual costs may be higher or lower.

 

Expenses on a $10,000 investment

 

1 year    3 years      5 years      10 years  
$70    $ 221      $ 384      $ 859  

9. Schwab Target 2050 Fund

The “Annual fund operating expenses” table, “Example” and “Expenses on a $10,000 investment” table under the “Fund fees and expenses” section on page 33 of the Prospectus are deleted and replaced in their entirety with the following:

 

Annual fund operating expenses (expenses that you pay each year as a % of the value of your investment)

Management fees

    None  

Distribution (12b-1) fees

    None  

Other expenses

    0.15  

Acquired fund fees and expenses (AFFE)1

    0.71  
 

 

 

 

Total annual fund operating expenses

    0.86  

Less expense reduction

    (0.15
 

 

 

 

Total annual fund operating expenses (including AFFE) after expense reduction2

    0.71  
 

 

 

 

 

  1

“Acquired fund fees and expenses (AFFE)” are based on estimated amounts for the current fiscal period.

  2 

The investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non-routine expenses) of the fund to 0.00% for so long as the investment adviser serves as the adviser to the fund. This agreement may only be amended or terminated with the approval of the fund’s Board of Trustees. This agreement is limited to the fund’s direct operating expenses and does not apply to AFFE.

 

6


Example

This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those time periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. The figures are based on total annual fund operating expenses (including AFFE) after expense reduction. The expenses would be the same whether you stayed in the fund or sold your shares at the end of each period. Your actual costs may be higher or lower.

 

Expenses on a $10,000 investment

 

1 year    3 years      5 years      10 years  
$73    $ 227      $ 395      $ 883  

10. Schwab Target 2055 Fund

The “Annual fund operating expenses” table, “Example” and “Expenses on a $10,000 investment” table under the “Fund fees and expenses” section on page 37 of the Prospectus are deleted and replaced in their entirety with the following:

 

Annual fund operating expenses (expenses that you pay each year as a % of the value of your investment)

Management fees

    None  

Distribution (12b-1) fees

    None  

Other expenses

    0.26  

Acquired fund fees and expenses (AFFE)1

    0.73  
 

 

 

 

Total annual fund operating expenses

    0.99  

Less expense reduction

    (0.26
 

 

 

 

Total annual fund operating expenses (including AFFE) after expense reduction2

    0.73  
 

 

 

 
  1

“Acquired fund fees and expenses (AFFE)” are based on estimated amounts for the current fiscal period.

  2 

The investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non-routine expenses) of the fund to 0.00% for so long as the investment adviser serves as the adviser to the fund. This agreement may only be amended or terminated with the approval of the fund’s Board of Trustees. This agreement is limited to the fund’s direct operating expenses and does not apply to AFFE.

 

Example

This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those time periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. The figures are based on total annual fund operating expenses (including AFFE) after expense reduction. The expenses would be the same whether you stayed in the fund or sold your shares at the end of each period. Your actual costs may be higher or lower.

 

Expenses on a $10,000 investment

 

1 year    3 years      5 years      10 years  
$75    $ 233      $ 406      $ 906  

 

7


11. Schwab Target 2060 Fund

The “Annual fund operating expenses” table, “Example” and “Expenses on a $10,000 investment” table under the “Fund fees and expenses” section on page 41 of the Prospectus are deleted and replaced in their entirety with the following:

 

Annual fund operating expenses (expenses that you pay each year as a % of the value of your investment)

Management fees

    None  

Distribution (12b-1) fees

    None  

Other expenses

    1.10  

Acquired fund fees and expenses (AFFE)1

    0.75  
 

 

 

 

Total annual fund operating expenses

    1.85  

Less expense reduction

    (1.10
 

 

 

 

Total annual fund operating expenses (including AFFE) after expense reduction2

    0.75  
 

 

 

 

 

  1

“Acquired fund fees and expenses (AFFE)” are based on estimated amounts for the current fiscal period.

  2 

The investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non-routine expenses) of the fund to 0.00% for so long as the investment adviser serves as the adviser to the fund. This agreement may only be amended or terminated with the approval of the fund’s Board of Trustees. This agreement is limited to the fund’s direct operating expenses and does not apply to AFFE.

 

Example

This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those time periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. The figures are based on total annual fund operating expenses (including AFFE) after expense reduction. The expenses would be the same whether you stayed in the fund or sold your shares at the end of each period. Your actual costs may be higher or lower.

 

Expenses on a $10,000 investment

 

1 year    3 years      5 years      10 years  
$77    $ 240      $ 417      $ 930  

 

PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE

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