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Compounding can also cause a widening differential between the performances of a fund and its underlying index or benchmark, so that returns over periods longer than the stated reset period can differ in amount and direction from the target return of the same period. Schwab's Financial and Other Relationships with Mutual Funds Investors should consider carefully information contained in the prospectus or, if available, the summary prospectus, including investment objectives, risks, charges and expenses. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes.
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