\nAt a meeting held on June 10, 2026, upon the recommendation of Charles Schwab Investment Management, Inc. (\u201cCSIM\u201d), the investment adviser to the fund, the Board of Trustees of the Schwab Strategic Trust approved the closure and liquidation of the Schwab Ariel Opportunities ETF (SAEF). The fund will cease trading on the NYSE Arca, Inc. (NYSE) as of the close of regular trading on July 17, 2026 (the \u201cClosing Date\u201d), at which time the fund\u2019s shares will be delisted. The fund will not accept creation orders after the Closing Date. Shareholders may sell their fund shares, subject to typical transaction fees from their broker-dealer, until market close on July 17, 2026.<\/p>\n
\nThe fund will be liquidated on or about July 24, 2026 (\u201cLiquidation Date\u201d). The fund will redeem all its outstanding shares and proceeds of the liquidation will be promptly distributed to shareholders that still hold fund shares as of market close on July 17, 2026. From June 12, 2026, through the Liquidation Date, it should be expected that all or a portion of the fund may not be invested in a manner consistent with its stated investment objective and strategies.<\/p>\n
About Schwab Asset Management<\/b><\/p>\n
\nOne of the industry\u2019s largest and most experienced asset managers, Schwab Asset Management offers a focused lineup of competitively priced ETFs, mutual funds and separately managed account strategies designed to serve the central needs of most investors. By operating through clients\u2019 eyes, and putting them at the center of our decisions, we aim to deliver exceptional experiences to investors and the financial professionals who serve them. As of March 31, 2026, Schwab Asset Management managed approximately $1.6 trillion on a discretionary basis and $42.5 billion on a non-discretionary basis. More information is available at www.schwabassetmanagement.com<\/a>.<\/p>\n About Charles Schwab<\/b><\/p>\n \nAt Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients\u2019 goals with passion and integrity.<\/p>\n \nMore information is available at www.aboutschwab.com<\/a>. Follow us on X<\/a>, Charles Schwab | Westlake TX | Facebook<\/a>, YouTube<\/a> and LinkedIn<\/a>.<\/p>\n Disclosures:<\/b><\/p>\n Investors should consider carefully information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses. You can obtain a prospectus, or if available, a summary prospectus by visiting schwabassetmanagement.com\/schwabetfs_prospectus<\/a>. Please read it carefully before investing.<\/b><\/p>\n \nInvestment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Shares of ETFs are bought and sold at market price, which may be higher or lower than the net asset value (NAV).<\/p>\n The Schwab Ariel Opportunities ETF is different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. This fund will not. This may create additional risks for your investment. For example:<\/b><\/p>\n \u25aa You may have to pay more money to trade the fund\u2019s shares. This fund will provide less information to traders, who tend to charge more for trades when they have less information.<\/b><\/p>\n \u25aa The price you pay to buy fund shares on an exchange may not match the value of the fund\u2019s portfolio. The same is true when you sell shares. These price differences may be greater for this fund compared to other ETFs because it provides less information to traders.<\/b><\/p>\n \u25aaThese additional risks may be even greater in bad or uncertain market conditions.<\/b><\/p>\n \u25aa The ETF will publish on its website each day a \u201cProxy Portfolio\u201d designed to help trading in shares of the ETF. While the Proxy Portfolio includes some of the ETF\u2019s holdings, it is not the ETF\u2019s actual portfolio.<\/b><\/p>\n The differences between this fund and other ETFs may also have advantages. By keeping certain information about the fund secret, this fund may face less risk that other traders can predict or copy its investment strategy. This may improve the fund\u2019s performance. If other traders are able to copy or predict the fund\u2019s investment strategy, however, this may hurt the fund\u2019s performance. For additional information regarding the unique attributes and risks of the fund, see Proxy Portfolio Risk, Premium\/Discount Risk, Trading Halt Risk, Authorized Participant Concentration Risk, Tracking Error Risk and Shares of the Fund May Trade at Prices Other Than NAV in the Principal Risks and Proxy Portfolio and Proxy Overlap sections of the prospectus and\/or the Statement of Additional Information.<\/b><\/p>\n Active Semi-Transparent (also known as Non-Transparent) ETFs:<\/b> Active semi-transparent (also known as non-transparent) ETFs operate differently from other exchange-traded funds (ETFs). Unlike other ETFs, an active semi-transparent (also known as non-transparent) ETF does not publicly disclose its entire portfolio composition each business day, which may affect the price at which shares of the ETF trade in the secondary market. Active semi-transparent (also known as non-transparent) ETFs have limited public trading history. There can be no assurance that an active trading market will develop, be maintained or operate as intended. There is a risk that the market price of an active semi-transparent (also known as a non-transparent) ETF may vary significantly from the ETF\u2019s net asset value and that its shares may trade at a wider bid\/ask spread and, therefore, cost investors more to trade than shares of other ETFs. These risks are heightened during periods of market disruption or volatility.<\/p>\n Proxy Portfolio Risk<\/b>: Unlike traditional ETFs, this fund does not disclose its portfolio holdings (Actual Portfolio) daily. The fund instead posts a Proxy Portfolio on its website each day. The Proxy Portfolio is designed to reflect the economic exposures and risk characteristics of the fund\u2019s actual holdings on each trading day, but it is not the same as the fund\u2019s Actual Portfolio. Although the Proxy Portfolio is intended to provide investors with enough information to allow for an effective arbitrage mechanism that will keep the market price of the Fund at or close to the underlying NAV per Share of the Fund, there is a risk (which may increase during periods of market disruption or volatility) that market prices will vary significantly from the underlying NAV of the fund. ETF trading on the basis of a published Proxy Portfolio may trade at a wider bid\/ask spread than ETFs that publish their portfolios on a daily basis, especially during periods of market disruption or volatility, and therefore may cost investors more to trade. Also, while the Fund seeks to benefit from keeping its portfolio information secret, market participants may attempt to use the Proxy Portfolio to identify a Fund\u2019s trading strategy, which if successful, could result in such market participants engaging in certain predatory trading practices that may have the potential to harm the Fund and its shareholders.<\/p>\n Proxy Portfolio Construction:<\/b> The Proxy Portfolio is designed to recreate the daily performance of the Actual Portfolio. This is achieved by performing a \u201cFactor Model\u201d analysis of the Actual Portfolio. The Factor Model is comprised of three sets of factors or analytical metrics: market-based factors, fundamental factors, and industry\/sector factors. The fund uses a \u201cModel Universe\u201d to generate its Proxy Portfolio. The Model Universe is comprised of securities that the fund can purchase and will be a financial index or stated portfolio of securities from which fund investments will be selected. The results of the Factor Model analysis are then applied to the Model Universe. The Proxy Portfolio is then generated as a result of this Model Universe analysis with the Proxy Portfolio being a small sub-set of the Model Universe. The Factor Model is applied to both the Actual Portfolio and the Model Universe to construct the fund\u2019s Proxy Portfolio that performs in a manner substantially identical to the performance of its Actual Portfolio.<\/p>\n \nThe Proxy Portfolio will only include investments the fund is permitted to hold. The fund\u2019s SAI contains more information on the Proxy Portfolio and its construction. Proxy Portfolio and Proxy OverlapInformation regarding the contents of the Proxy Portfolio, and the percentage weight overlap betweenthe holdings of the Proxy Portfolio and a Fund\u2019s Actual Portfolio holdings that formed the basis for its calculation of NAV at the end of the prior Business Day (the Portfolio Overlap), is available by visiting the fund\u2019s website www.schwabassetmanagement.com<\/a>.<\/p>\n \nSchwab Asset Management\u00ae is the dba name for Charles Schwab Investment Management, Inc., the investment adviser for Schwab ETFs. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). Schwab Asset Management is a separate but affiliated company and subsidiary of The Charles Schwab Corporation, and is not affiliated with SIDCO.<\/p>\n \n0626-VHLJ<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20260612821030\/en\/<\/a><\/span><\/p>\n \nChristine Underhill KEYWORDS:<\/b> Texas United States North America<\/p>\n INDUSTRY KEYWORDS:<\/b> Banking Asset Management Professional Services Finance<\/p>\n<\/p>\n
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Charles Schwab
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415-961-3790<\/p>\n
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