Schwab® Mortgage-Backed Securities ETF SMBS Strategy

The investment seeks to track as closely as possible, before fees and expenses, the total return of the Bloomberg U.S. MBS Float Adjusted Total Return Index. The index is composed of investment-grade mortgage-backed securities issued and/or guaranteed by U.S. government agencies. It is the fund’s policy that under normal circumstances it will invest at least 90% of its net assets (including, for this purpose, any borrowings for investment purposes) in securities included in the index, including TBA transactions.