<PAGE> 1
SUPPLEMENT TO THE PROSPECTUSES
FOR:
SCHWAB SHORT-TERM BOND MARKET INDEX FUND
SCHWAB TOTAL BOND MARKET INDEX FUND
DATED NOVEMBER 15, 1999
STEP 1 OF THE "BUYING SHARES" SECTION UNDER "INVESTING IN THE FUNDS" IS MODIFIED
AS FOLLOWS:
CHOOSE A FUND, then decide how much you want to invest
<TABLE>
<S> <C> <C> <C>
Minimum initial Minimum additional
Investment Investment Minimum balance
-------------------------------------------------------------------------
$2,500 ($1,000 $500 ($100 for $1,000 ($500 for
for retirement and Automatic Investment retirement and
custodial accounts) Plan) custodial accounts)
</TABLE>
SCHWAB YIELDPLUS FUND(TM)- INVESTOR SHARES
DATED JULY 21, 1999
<TABLE>
<S> <C> <C> <C>
Share class Minimum initial Minimum additional
Investment Investment Minimum balance
-------------------------------------------------------------------------
Investor Shares $2,500 ($1,000 $500 ($100 for $1,000 ($500 for
for retirement and Automatic Investment retirement and
custodial accounts) Plan) custodial accounts)
</TABLE>
SCHWAB CALIFORNIA SHORT/INTERMEDIATE TAX-FREE BOND FUND
SCHWAB CALIFORNIA LONG-TERM TAX-FREE BOND FUND
DATED NOVEMBER 15, 1999
SCHWAB SHORT/INTERMEDIATE TAX-FREE BOND FUND
SCHWAB LONG-TERM TAX-FREE BOND FUND
DATED NOVEMBER 15, 1999
<TABLE>
<S> <C> <C> <C>
Minimum initial Minimum additional
Investment Investment Minimum balance
-------------------------------------------------------------------------
$2,500 ($1,000 $500 ($100 for $1,000 ($500 for
custodial accounts) Automatic Investment Plan) custodial accounts)
</TABLE>
THE YEAR 2000 disclosure information under "Fund Management" for all of the
above prospectuses has been deleted.
A Special Meeting of Shareholders of all SchwabFunds will be held on June 1,
2000 for the following express purposes:
1. To elect trustees of each fund to hold office until their successors
are duly elected and qualified; and
2. To eliminate, reclassify or amend certain fundamental investment
policies and restrictions.
The close of business on March 3, 2000 was designated as the record date for
determining those shareholders entitled to notice of the meeting (and any
adjournments thereof) and entitled to vote at the meeting. If you become a
shareholder after March 3, 2000, you will not be entitled to vote at the special
meeting. As set forth in the SchwabFunds' proxy materials, action taken at the
special meeting will affect your fund.
Please retain this supplement for future reference.
TF7560 (2/29/00)
