Fund Description

The fund pursues its goal by primarily investing in equity securities of companies in the health care sector, such as pharmaceutical and biotechnology companies, health care facilities operations, medical product manufacturers and suppliers, medical providers, and medical services firms. Under normal circumstances, it invests at least 80% of net assets in these securities and concentrates in the health care sector. It primarily invests in U.S. companies but may invest up to 25% in non-U.S. stocks, mainly in developed markets and also emerging markets, generally without hedging currency exposure. It may invest in any size company and actively selects portfolio securities and uses Schwab Equity Ratings to aid its U.S. stock selection and Schwab Equity Ratings International to aid its international stock selection. It may use futures, ETFs, REITs, depository receipts, securities lending, and may hold up to 100% in cash or short-term instruments for defensive or liquidity purposes.