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Schwab Intelligent Portfolios®
Total Return with Municipal Bonds – Portfolio 11
Report Date as of: 9/30/2017

Investment Objective

Putting the power of ETFs to work

Capital appreciation through a stock and real asset portfolio with
a modest allocation to bonds and cash.

CSIA selects ETFs for inclusion in Schwab Intelligent Portfolios
to ensure they meet criteria for both asset class representation
and cost efficiency. These criteria include assets under
management, bid-ask spread, tracking error, and other factors.
After meeting all other criteria, the ETF with the lowest operating
expense ratio is generally selected in each asset class. The
strategic asset allocation provides the core framework for risk
diversification and long-term return potential. CSIA reviews
ETFs in the program quarterly and conducts the full ETF
selection process annually.

The professionals behind Schwab Intelligent Portfolios
Schwab Intelligent Portfolios is an automated investment
advisory service that combines the power and efficiency of
technology along with human oversight. The program is made
available through Schwab Wealth Investment Advisory, Inc.
(SWIA), a registered investment advisor. Portfolio management
services are provided by Charles Schwab Investment Advisory,
Inc. (CSIA). CSIA is a team of investment professionals
responsible for asset allocation, exchange-traded fund ("ETF")
selection and implementation of rebalancing and tax-loss
harvesting trades. Using the power of technology, portfolios are
monitored daily and automatically rebalanced as needed to keep
their strategic allocation consistent over time.

Trailing Composite Performance 9/30/2017
Total Return %
as of 9/30/2017

15

Investment

10
5
0

Looking beyond traditional stock and bond asset classes
SWIA and CSIA believe that global strategic asset allocation
combined with disciplined rebalancing is the cornerstone of
modern portfolio management. In addition to traditional asset
classes like large-cap and small-cap U.S. stocks, the portfolio
includes international stocks, real assets (such as real estate
investment trusts and gold). The portfolio also includes a small
allocation to bonds (high yield and emerging markets) as well as
cash. Broad diversification is a key feature of Schwab Intelligent
Portfolios, with up to 20 asset classes in any single portfolio.
Portfolios range from conservative to aggressive, with higher
numbers indicating higher levels of risk. For example, Portfolio
11 has an incrementally higher level of risk than Portfolio 10.

20

Average annual,
if greater than 1
year

-5
-10
QTD

YTD

1 Year

2 Year

3 Year

Since
Inception
03/31/2015

-15

Performance Disclosure: The composite performance data quoted represents
past performance and does not guarantee future results. Current performance
may be lower or higher than return data quoted herein. Please read carefully the
section titled "Calculating Composite Performance Data" of the disclosure pages
for important detailed information.

Returns as of 9/30/2017 (Annualized for periods greater than one year)
Trailing Returns %

QTD

YTD

1-Year

2-Year

Total Return with Municipal Bonds – Portfolio 11

4.82

13.37

15.64

14.55

3-Year

Since Inception
03/31/2015
7.33

For One-on-One Use Only. Schwab Intelligent Portfolios charges no Advisory fees; therefore performance shown can be considered both Gross and Net of Fees. See the
Calculating Composite Performance Data section for more information on how Schwab affiliates earn revenue from underlying assets in Schwab Intelligent Portfolios
accounts. Past performance is no guarantee of future results.

Schwab Intelligent Portfolios®—Fact Sheet

All chart data is reflective as of 9/30/2017, except where noted otherwise.

Model Target Asset Allocation 9/30/2017

Sector Positioning (Domestic and International Equity)
Assets %

Stocks
US Large Company Stocks
US Large Fundamental
US Small Company Stocks
US Small Fundamental
Int'l Large Company Stocks
Int'l Large Fundamental
Int'l Small Company Stocks
Int'l Small Fundamental
Int'l Emerging Markets
Int'l Emerging Fundamental
US REITs
Int'l REITs
Fixed Income
High Yield Bonds
Emerging Bonds
Commodities
Precious Metals
Cash

85.0
11.0
16.0
6.0
10.0
8.0
12.0
4.0
5.0
3.0
5.0
3.0
2.0
5.0
2.0
3.0
3.1
3.1
6.9

Portfolio Country Allocation—Equities
Assets %

United States
Japan
United Kingdom
France
Germany
China
Canada
Other Countries

53.2
8.0
5.4
2.7
2.7
2.6
2.4
23.1

2-Year Return and Risk Analysis

Strategy

Total Return %
20
15
10
5
0
5
Standard Deviation

Allocation%
8.4
6.5
13.1
12.1
6.9
8.3
15.7
13.0
3.1
3.3
9.6
0

10

20

30

The Global Industry Classification Standard (GICS) was developed by and is the exclusive property
of Morgan Stanley Capital International Inc. and S&P Capital IQ. GICS is a service mark of MSCI
and S&P Capital IQ and has been licensed for use by Schwab.

Morningstar Fixed Income Sectors
⁄ Government
› Corporate
€ Securitized
‹ Municipal
Other

Strategy %
50.4
41.5
0.2
0.0
7.9

Portfolio Details — Fixed Income

Portfolio Details

0

Global Sectors
Energy
Materials
Industrials
Consumer Discretionary
Consumer Staples
Healthcare
Financials
Information Technology
Telecom Services
Utilities
Real Estate

10

15

20

2 Year Risk Measures
Standard Deviation

Strategy
8.48

Portfolio Statistics
Number of Asset Classes
Weighted Average Expense Ratio (%)
Distribution Yield

Strategy
15
0.19
1.93

Schwab Intelligent Portfolios®—Fact Sheet

Fixed Income Statistics
Average Effective Duration
Average Effective Maturity
Average Weighted Coupon

Strategy
4.0
5.7
6.6

Bond Maturity Characteristics
< 1 Year
1-3 Years
3-5 Year Maturity Bonds
5-7 Year Maturity Bonds
7-10 Year Maturity Bonds
10-15 Year Maturity Bonds
> 15 Years

Strategy
2.0
23.6
39.7
8.8
12.2
6.6
7.1

Disclosure
Calculating Composite Performance Data

The composite performance data shown is the performance of all fully
discretionary accounts in the Schwab Intelligent Portfolios® program
that have been under Charles Schwab Investment Advisory, Inc. (CSIA)
management for at least one calendar month, including any terminated
accounts. (Note that an account is considered under management for
the full calendar month if it is fully invested in Schwab Intelligent
Portfolios by the first business day of that month.) Each month, the
return is calculated for each individual account that was enrolled in the
Schwab Intelligent Portfolios strategy for the entire month. The
composite return performance shown is the weighted average of those
returns in the same strategy. The monthly composite gross returns are
aggregated over time to determine the returns for the quarter, year, or
other time periods. Returns reflect ETF operating expenses and the
reallocation of interest, dividends, or other distributions.
Schwab Intelligent Portfolios charges no Advisory fees; therefore
performance shown can be considered both Gross and Net of Fees.
Schwab affiliates do earn revenue from the underlying assets in Schwab
Intelligent Portfolios accounts. This revenue comes from managing
Schwab ETFs™ and providing services related to certain third-party
ETFs that can be selected for the portfolios, and from the cash feature
on the accounts. Revenue may also be received from the market centers
where ETF trade orders are routed for execution.
Individual client account returns, characteristics, and details may differ
from their respective composite performance, characteristics and
details, due to factors such as the timing of cash or securities deposits
and withdrawals, asset-class drift in the account, and other clientspecific circumstances, including client-requested investment
restrictions and use of the tax-loss harvesting feature.

Additional Disclosures
The information in each section (with the exception of ‘Model Target
Asset Allocation’ which reflect the strategy’s model allocation)
reflects the underlying holdings of the ETFs held in the model portfolio
as of the date noted, based on holdings information provided by
Morningstar.

Schwab Intelligent Portfolios®—Fact Sheet

Important Risk Disclosures

This document is designed to provide information regarding this
investment strategy for the Schwab Intelligent Portfolios program and
is not to be distributed or used for any other purpose. The investment
strategies described in this document have certain risks inherent to the
asset class and types of securities involved, which are described in the
Schwab Wealth Investment Advisory, Inc. Schwab Intelligent Portfolios
Disclosure Brochure and the Charles Schwab Investment Advisory, Inc.
Schwab Intelligent Portfolios Disclosure Brochure.
Performance may be affected by risks associated with nondiversification, including investments in specific countries or sectors.
Additional risks may also include, but are not limited to, investments in
foreign securities, especially emerging markets, real estate investment
trusts (REITs), fixed income, municipal securities including state
specific municipal securities, and small capitalization securities. More
information regarding these specific risks can be found in the CSIA
Schwab Intelligent Portfolios Disclosure Brochure available from
intelligent.schwab.com/disclosurebrochure. Each individual investor
should consider these risks carefully before investing in a particular
security or strategy.
For certain investment strategies, it is possible that CSIA may allocate
a percentage of the portfolio to asset classes or securities beyond the
types that are described in this document, which can result in additional
risks. Please review the disclosure brochures mentioned above and
discuss with your Schwab Consultant or investment advisor any
questions you may have regarding the risks associated with this
portfolio.
Diversification strategies do not ensure a profit and do not protect
against losses in declining markets.
Tax-exempt bonds are not necessarily a suitable investment for all
persons. Information related to a security's tax-exempt status (federal
and in-state) is obtained from third-parties and Schwab does not
guarantee its accuracy. Tax-exempt income may be subject to the
Alternative Minimum Tax (AMT). Capital appreciation from bond funds
and discounted bonds may be subject to state or local taxes. Capital
gains are not exempt from federal income tax.
Past performance is no guarantee of future results. The value of
investments and the income derived from them can go down as well as
up. Future returns are not guaranteed and a loss of principal may occur.

Definitions
Annualized Return describes the return gained, on average, each year
of a multi-year period. It is a geometric average rate of return that, if
achieved annually, would have produced the same cumulative return if
performance had been consistent over the entire period.
Average Effective Duration is an estimate of how a portfolio will react
to changes in interest rates, representing the approximate change in
price for a 1% change in yield.
Average Effective Maturity, sometimes referred to as Average Life, is
the market value weighted average of the years to expected maturity
across all of the bonds in the portfolio.
Average Weighted Coupon is calculated by weighting each bond's
coupon by its relative size in the portfolio. It indicates whether the
underlying fund owns more high- or low-coupon bonds. There can be
advantages to holding higher coupon bonds, but many funds buy them
simply to tempt investors with a high payout. This can be damaging to
investors for two reasons. The first is that higher-coupon bonds often
carry greater risk than lower-coupon issues. The second is that when
these bonds don't carry extra risk, they are old issues that the fund has
paid up for and if the offering doesn't amortize the extra yield, investors
are likely to find that their principal erodes over time.

Distribution Yield is the Trailing 12-Month End Yield, which is computed
by summing the trailing 12-month's income distributions and dividing
the sum by the last month's ending Net Asset Value (NAV), plus capital
gains distributed over the same time period. Income refers only to
interest payments from fixed-income securities and dividend payments
from common stocks.
Since Inception Performance, please note that “Since Inception”
performance in the table on page 1 shows performance for this strategy
beginning with the first full quarter for which the strategy had
performance, although the strategy may have started prior to that
time.
Standard Deviation (Std Dev Sample) is a statistical measure of
portfolio risk. It reflects the average deviation of the returns from their
mean for the historical period being considered.
Weighted Average Expense Ratio is the weighted average of the
prospectus net expense ratio of all funds in the portfolio. The
prospectus net expense ratio is the percentage of fund assets, net of
reimbursements, used to pay for operating expenses and management
fees, including 12b-1 fees, administrative fees, and all other assetbased costs incurred by the fund, except brokerage costs. Fund
expenses are reflected in the fund's NAV.

Brokerage Products: Not FDIC-Insured • No Bank Guarantee • May Lose Value
©2017 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or
distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising
from any use of this information. Past performance is no guarantee of future results.
Schwab Intelligent Portfolios® charges no advisory fees. Schwab affiliates do earn revenue from the underlying assets in Schwab Intelligent Portfolios accounts. This
revenue comes from managing Schwab ETFs™ and providing services related to certain third-party ETFs that can be selected for the portfolios, and from the cash
feature on the accounts. Revenue may also be received from the market centers where ETF trade orders are routed for execution.
Schwab Intelligent Portfolios is designed to monitor a client’s portfolio on a daily basis and will also automatically rebalance as needed to keep the portfolio consistent
with the client’s selected risk profile unless such rebalancing may not be in the best interest of the client. Trading may not take place daily.
Tax-loss harvesting is available for clients with invested assets of $50,000 or more in their Schwab Intelligent Portfolios account. Clients must enroll to receive this
service.
The cash allocation in Schwab Intelligent Portfolios will be accomplished through enrollment in the Schwab Intelligent Portfolios ("Sweep Program"), sponsored by
Charles Schwab & Co., Inc. ("Schwab"). By enrolling in Schwab Intelligent Portfolios, clients consent to having the free credit balances in their Schwab Intelligent
Portfolios brokerage accounts swept into deposit accounts at Charles Schwab Bank ("Schwab Bank") through the Sweep Program. Schwab Bank is an FDIC-insured
depository institution affiliated with Schwab Wealth Investment Advisory, Inc. ("SWIA"), Schwab, and Charles Schwab Investment Advisory, Inc. ("CSIA"). Cash balances
held in the Sweep Program at Schwab Bank are eligible for FDIC insurance up to allowable limits.
Please read the Schwab Intelligent Portfolios disclosure brochures (intelligent.schwab.com/disclosurebrochure) for important information.
Schwab Intelligent Portfolios is made available through Schwab Wealth Investment Advisory, Inc. ("SWIA"), a registered investment advisor. Portfolio management
services are provided by Charles Schwab Investment Advisory, Inc. ("CSIA"). SWIA and CSIA are affiliates of Charles Schwab & Co., Inc. ("Schwab") and subsidiaries
of The Charles Schwab Corporation.
Charles Schwab & Co., Inc. and Charles Schwab Bank are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products,
including the Schwab One® brokerage account, are offered by Charles Schwab & Co., Inc., Member SIPC. Deposit and lending products are offered by Charles Schwab
Bank, Member FDIC and an Equal Housing Lender.

Schwab Intelligent Portfolios®—Fact Sheet
©2017 Schwab Wealth Investment Advisory, Inc. All rights reserved. SLS81224-00 (0417-YNWR) 10/24/2017


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