<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:
STEP 1
CHOOSE A FUND, then decide how much you want to invest
<TABLE>
<CAPTION>
Minimum initial Minimum additional
Investment Investment Minimum balance
---------------------------------------------------------------------
<S> <C> <C> <C>
$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>
<CAPTION>
Share class Minimum initial Minimum additional
Investment Investment Minimum balance
---------------------------------------------------------------------
<S> <C> <C> <C>
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>
<CAPTION>
Minimum initial Minimum additional
Investment Investment Minimum balance
---------------------------------------------------------------------
<S> <C> <C> <C>
$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.
TF7560(2/29/00)
