Filed Pursuant to Rule 497(e)
Registration File No. 333-66807
E*TRADE FUNDS
E*TRADE PREMIER MONEY MARKET FUND
SUPPLEMENT DATED August 17, 2000 TO THE STATEMENT OF ADDITIONAL INFORMATION
DATED MARCH 29, 2000, as Supplemented on May 31, 2000
This Supplement updates certain information contained in the above-dated
Statement of Additional Information ("SAI"). You may obtain a copy of the SAI,
as supplemented, without charge, at our Website (www.etrade.com). Information on
the Website is not incorporated by reference into the SAI unless specifically
noted.
The information provided below should replace that located in the section titled
"Control Persons and Principal Holders of Securities:"
Control Persons and Principal Holders of Securities
As of July 31, 2000, the following persons beneficially owned 5% or more
of the Fund's outstanding equity securities:
Shares
Beneficially Percent of
Name Owned Fund
---- ----- ----
Stuart J. Steele and Suzanne E. Steele 156,308,821 53.6%*
Manchester, NH
Erinn E. Steele 65,000,000 22.3%
Manchester, NH
James A. Steele and Christina L. Steele 19,596,000 6.7%
Manchester, NH
Kathryn K. Steele and Stuart J. Steele 7,700,000 2.6%**
Manchester, NH
-------------
* A shareholder beneficially owning more than 25% of the Fund's voting
securities may be deemed to control the Fund.
** Although less than 5% of the Fund's outstanding equity securities,
when combined with Mr. Steele's 53.6% ownership interest through
another joint account (as indicated above), Mr. Steele's ownership
interest totals 56.2% of the Fund.
A shareholder with a controlling interest could affect: (i) the direction
of management of the Fund or (ii) the outcome of proxy voting by diluting
the effect of the votes of other shareholders of the Fund. If any large
shareholder were to substantially reduce its investment in the Fund, it
could also adversely affect the Fund by, for example, (i) decreasing the
size of the Fund, (ii) causing the Fund to incur trading expenses or (iii)
impacting orderly portfolio management.
As of the date of this SAI, the Trustees and Officers of the Fund as a
group owned less than 1% of the Fund's equity securities.
