Fund Description

The fund invests primarily in U.S. stocks, normally committing at least 80% of net assets (including borrowings for investment purposes) to equity securities of U.S. companies, with 60 days' notice before changing this policy. It typically buys common stocks of U.S. companies with market capitalizations of about $500 million or more and seeks long-term performance exceeding the S&P 500 Index. Security selection uses Schwab Equity Ratings plus other data and analytics, generally emphasizing highly rated stocks while allowing lower- or unrated holdings. Managers use bottom-up research, quantitative and qualitative analysis, and may apply portfolio optimization. The fund may invest in derivatives, principally futures contracts, primarily to seek returns on the fund's otherwise uninvested cash assets, invest in ETFs and REITs, lend securities, and hold up to 100% in cash or short-term instruments for defensive or liquidity purposes.