Exhibit (d)(xvii) February 12, 2005 Evelyn Dilsaver, President and Chief Executive Officer, Schwab Capital Trust 101 Montgomery Street San Francisco, CA 94104 Re: Schwab Premier Equity Fund - Investor Shares Schwab Premier Equity Fund - Select Shares...

                                                               Exhibit (d)(xvii)

February 12, 2005


Xxxxxx Xxxxxxxx,
President and Chief Executive Officer,
Schwab Capital Trust
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000

Re: Schwab Premier Equity Fund - Investor Shares
    Schwab Premier Equity Fund - Select Shares

Dear Xx. Xxxxxxxx:

This letter will confirm our agreement to limit the net operating expenses of
each share class of the above-named fund as noted in the table below and
described in the fund's registration statement filed with the Securities and
Exchange Commission.



FUND                           NET               GUARANTEED
                               OPERATING         THROUGH:
                               EXPENSE
                               LIMIT
                                           
SCHWAB PREMIER EQUITY          1.30%             2/27/06
FUND - INVESTOR SHARES

SCHWAB PREMIER EQUITY          1.15%             2/27/06
FUND - SELECT SHARES


Sincerely,


   Xxxxxxx X. Xxxx                         Xxxxxx Xxxxxxxx,
   Senior Vice President and Chief         Vice President, Proprietary Funds
   Investment Officer, Xxxxxxx             Xxxxxxx Xxxxxx & Co., Inc.
   Schwab Investment Management, Inc.


cc:
Xxxx Xxxxxx
Xxxxxxx Xxxxxxx
Xxxxxx Xxxxxxx
Xxx-Xxx Xxx
Xxxxxxx X. Hand