In This Report

From the President continued
The often-challenging
international backdrop
translated into declines
for many major world
currencies versus the
U.S. dollar, weighing on
international stock
returns for U.S.
investors.
4 Schwab International ETFs
currencies relative to the U.S. dollar, in addition to the double-digit depreciation
of the euro. Losses for international small-cap and emerging-market
stocks were generally more pronounced in U.S. dollar terms.
Thank you for investing in the Schwab International ETFs. As you may be
aware, we recently announced that effective September 20, 2012, we reduced
the operating expense ratios (OERs) on our entire suite of ETFs. As a result,
Schwab ETFs now have some of the lowest OERs in their respective Lipper
categories.*
We encourage you to review your investment portfolio regularly to ensure that
it meets your current financial plan. For answers to frequently asked questions
or for more information about the Schwab International ETFs, please visit
www.schwabetfs.com. We are also happy to hear from you at 1-800-435-4000.
Sincerely,
Indices are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly. Index return figures assume
dividends and distributions were reinvested.
* This claim is based on expense ratio data comparisons between Schwab and non-Schwab ETFs in their respective Lipper categories. Expense
ratio data for non-Schwab ETFs were obtained from the funds’ prospectuses as of 9/4/12. Expense ratio data for Schwab ETFs TM are as of
9/20/12. ETFs in the same Lipper category may track different indexes, have differences in holdings, and show different performances.
Expense ratios are subject to change. Information has been sourced from Lipper, a Thomson Reuters Company (“Lipper Content”). All such
information is protected by copyright: · 2012 THOMSON REUTERS. All rights reserved.