Schwab U.S. Large-Cap ETF NCSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-22311

Schwab Strategic Trust

(Exact name of registrant as specified in charter)

211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)

Randall W. Merk
Schwab Strategic Trust
211 Main Street, San Francisco, California 94105
(Name and address of agent for service)

Registrant’s telephone number, including area code: (415) 636-7000

Date of fiscal year end: August 31

Date of reporting period: February 28, 2010

Item 1: Report(s) to Shareholders.

Semiannual report dated February 28, 2010 enclosed.

Schwab U.S. ETFs

Schwab U.S. Broad Market ETF^tm

Schwab U.S. Large-Cap ETF^tm

Schwab U.S. Large-Cap

Growth ETF^tm

Schwab U.S. Large-Cap

Value ETF^tm

Schwab U.S. Small-Cap ETF^tm

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Schwab U.S. ETFs

Semiannual Report

February 28, 2010

Schwab U.S. Broad Market ETF^tm

Schwab U.S. Large-Cap ETF^tm

Schwab U.S. Large-Cap

Growth ETF^tm

Schwab U.S. Large-Cap

Value ETF^tm

Schwab U.S. Small-Cap ETF^tm

In This Report


Performance at a Glance		1
From the President		2
Fund Management		3
Schwab U.S. Broad Market ETF™		4
Schwab U.S. Large-Cap ETF™		6
Schwab U.S. Large-Cap Growth ETF™		8
Schwab U.S. Large-Cap Value ETF™		10
Schwab U.S. Small-Cap ETF™		12
Fund Expenses		14
Financial Statements		15
Financial Notes		82
Investment Advisory Agreement Approval		89
Trustees and Officers		91
Glossary		93
EX-99.CERT
EX-99.906CERT

Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: SEI Investments Distribution Co. (SIDCO).

The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Charles Schwab & Co., Inc. The Industry classifications used in the schedules of Portfolio Holdings are sub-categories of Sector classifications.

Performance at a Glance

The performance quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. To obtain performance information current to the most recent month end, please visit www.schwabetfs.com.


*Total Return from Inception to February 28, 2010**



Schwab U.S. Broad Market ETF^tm
(Ticker Symbol: SCHB)

NAV Return¹		7.85%
Market Price Return¹		7.89%
Dow Jones U.S. Broad Stock Market Index^SM		7.92%
Fund Category: Morningstar Large Blend		7.90%

Performance Details		pages 4-5



Schwab U.S. Large-Cap ETF^tm
(Ticker Symbol: SCHX)

NAV Return¹		7.19%
Market Price Return¹		7.31%
Dow Jones U.S. Large-Cap Total Stock Market Index^SM		7.24%
Fund Category: Morningstar Large Blend		7.90%

Performance Details		pages 6-7



Schwab U.S. Large-Cap Growth ETF^tm
(Ticker Symbol: SCHG)

NAV Return¹		2.09%
Market Price Return¹		2.17%
Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM		2.05%
Fund Category: Morningstar Large Growth		1.32%

Performance Details		pages 8-9



Schwab U.S. Large-Cap Value ETF^tm
(Ticker Symbol: SCHV)

NAV Return¹		0.20%
Market Price Return¹		0.48%
Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM		0.25%
Fund Category: Morningstar Large Value		0.63%

Performance Details		pages 10-11



Schwab U.S. Small-Cap ETF^tm
(Ticker Symbol: SCHA)

NAV Return¹		13.51%
Market Price Return¹		13.47%
Dow Jones U.S. Small-Cap Total Stock Market Index^SM		13.66%
Fund Category: Morningstar Small Blend		14.01%

Performance Details		pages 12-13

All fund and index figures on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.

Exchange-traded funds are subject to risks similar to those of stocks. Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

Index ownership — ‘‘Dow Jones” and the names identifying the Dow Jones Indexes underlying Schwab’s Domestic ETFs are trademarks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Charles Schwab Investment Management, Inc. The Schwab ETFs are not sponsored, endorsed, sold or promoted by Dow Jones and Dow Jones makes no representation regarding the advisability of investing in such products.


*	Inception represents the date that the shares began trading in the secondary market. For the Schwab U.S. Broad Market ETF, Schwab U.S. Large-Cap ETF, and Schwab U.S. Small-Cap ETF, total returns are since inception date of 11/3/09. For the Schwab U.S. Large-Cap Growth ETF and Schwab U.S. Large-Cap Value ETF, total returns are since inception date of 12/11/09.

¹	The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV return is based on the NAV of the fund, and the market return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.

Schwab U.S. ETFs 1

From the President

Randall W. Merk is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.

Dear Shareholder,

I am pleased to present the inaugural semiannual report for the Schwab U.S. Exchange-Traded Funds^tm (ETFs)—products that we recently launched as part of our ongoing effort to deliver solutions to help our clients achieve their investing goals.

Here at Schwab, we believe that ETFs can play an important—and complementary—role in building a diversified portfolio. ETFs offer additional transparency and trading flexibility, and promote tax-efficiency.

Along with these benefits, Schwab ETFs were also designed to help clients keep their overall cost of investing low. Schwab ETFs have among the lowest management fees in the industry and can also be traded online at Schwab without commissions. Our ETFs offer investors an easy and cost-effective way to own broadly diversified portfolios of domestic and international stocks. You can use a single Schwab ETF to gain low-cost, tax-efficient exposure to an asset class, or you can combine several Schwab ETFs as a part of your asset allocation plan.

For information on the performance of the individual funds contained in this report, please see the fund managers’ discussion and analysis in the following pages.

If you have any questions about Schwab Exchange-Traded Funds^tm, or any of our mutual funds, we are always available at 1-800-435-4000, and additional resources may be found on schwab.com.

Thank you for investing with us.

Sincerely,

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling Schwab at 800-435-4000. Please read the prospectus carefully before investing.

2 Schwab U.S. ETFs

Fund Management



		Jeffrey Mortimer, CFA, senior vice president and chief investment officer of the investment adviser, is responsible for the overall management of the funds. Prior to joining the firm in October 1997, he worked for more than eight years in asset management.

		Dustin Lewellyn, CFA, a managing director of the investment adviser, oversees the adviser’s management of ETFs. Prior to joining the firm in May 2009, he worked for two years as director of ETF product management and development at a major financial institution focused on asset and wealth management. Prior to that, he was a portfolio manager for institutional clients at a financial services firm for three years. In addition, he held roles in portfolio operations and product management at a large asset management firm for more than 6 years.

		Agnes Hong, CFA, a managing director and portfolio manager of the investment adviser, has day-to-day responsibility for the management of the funds. Prior to joining the firm in September 2009, she worked for more than 5 years as a portfolio manager for a major asset management firm.

Schwab U.S. ETFs 3

Schwab U.S. Broad Market ETF

The Schwab U.S. Broad Market ETF seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Broad Stock Market Index^SM, which includes the largest 2500 publicly traded U.S. companies for which pricing information is readily available.

During the reporting period that began with the fund’s inception date of November 3, 2009, and ended February 28, 2010, the fund’s market price return was 7.89% and its NAV return was 7.85%. The comparative index, the Dow Jones U.S. Broad Stock Market Index, returned 7.92% during the same period. Unlike the fund, the index return is not inclusive of operational and transactional costs. You cannot invest directly in an index.

For an explanation of market price and NAV returns, please refer to footnote 3 on the following page.

As of 02/28/10:

Style Assessment¹

Statistics


Number of Holdings		1539
Weighted Average Market Cap ($ x 1,000,000)		$65,083
Price/Earnings Ratio (P/E)		24.6
Price/Book Ratio (P/B)		0.1
Portfolio Turnover Rate³		2%

Sector Weightings % of Investments


Information Technology		18.4%
Financials		16.9%
Health Care		12.6%
Consumer Discretionary		10.7%
Industrials		10.6%
Energy		10.5%
Consumer Staples		10.2%
Materials		3.8%
Utilities		3.6%
Telecommunication Services		2.7%
Total		100.0%

Top Holdings % of Net Assets²


Exxon Mobil Corp.		2.6%
Microsoft Corp.		1.9%
The Procter & Gamble Co.		1.6%
Apple, Inc.		1.5%
Johnson & Johnson		1.5%
General Electric Co.		1.4%
International Business Machines Corp.		1.4%
Bank of America Corp.		1.4%
JPMorgan Chase & Co.		1.4%
Berkshire Hathaway, Inc., Class B		1.3%
Total		16.0%

Manager views and portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Source: Morningstar, Inc. This style assessment is the result of evaluating the fund based on a ten-factor model for value and growth characteristics. The fund’s market capitalization placement is determined by the geometric mean of its holdings’ market capitalizations. The assessment reflects the fund’s portfolio as of 2/28/10, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.
²		This list is not a recommendation of any security by the investment adviser.
³		Not annualized.

4 Schwab U.S. ETFs

Schwab U.S. Broad Market ETF^tm

Performance Summary as of 02/28/10

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value will fluctuate so that an investor’s shares may, when sold or redeemed, be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabetfs.com.

November 3, 2009 – February 28, 2010
Performance of a Hypothetical
$10,000 Investment¹

Total Returns^1,2


Fund and Inception Date	Since Inception*


Fund: Schwab U.S. Broad Market ETF^tm (11/3/09)
NAV Return³		7.85	%
Market Price Return³		7.89	%
Dow Jones U.S. Broad Stock Market Index^SM		7.92	%
Fund Category: Morningstar Large Blend		7.90	%

Fund Expense Ratio⁴: 0.08%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		Source for category information: Morningstar, Inc.
³		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV return is based on the NAV of the fund, and the market return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
⁴		As stated in the prospectus.

Schwab U.S. ETFs 5

Schwab U.S. Large-Cap ETF™

The Schwab U.S. Large-Cap ETF seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Total Stock Market Index^SM, which includes the large-cap portion of the Dow Jones U.S. Total Stock Market Index^SM actually available to investors in the marketplace.

During the reporting period that began with the fund’s inception date of November 3, 2009, and ended February 28, 2010, the fund’s market price return was 7.31% and its NAV return was 7.19%. The comparative index, the Dow Jones U.S. Large-Cap Total Stock Market Index^SM, returned 7.24% during the same period. Unlike the fund, the index return is not inclusive of operational and transactional costs. You cannot invest directly in an index.

For an explanation of market price and NAV returns, please refer to footnote 3 on the following page.

As of 02/28/10:

Style Assessment¹

Statistics


Number of Holdings		730
Weighted Average Market Cap ($ x 1,000,000)		$72,894
Price/Earnings Ratio (P/E)		23.2
Price/Book Ratio (P/B)		0.1
Portfolio Turnover Rate³		1%

Sector Weightings % of Investments


Information Technology		18.5%
Financials		16.2%
Health Care		12.8%
Energy		11.0%
Consumer Staples		11.0%
Industrials		10.1%
Consumer Discretionary		10.0%
Utilities		3.8%
Materials		3.6%
Telecommunication Services		2.9%
Other		0.1%
Total		100.0%

Top Holdings % of Net Assets²


Exxon Mobil Corp.		2.9%
Microsoft Corp.		2.1%
The Procter & Gamble Co.		1.7%
Apple, Inc.		1.7%
Johnson & Johnson		1.6%
General Electric Co.		1.6%
International Business Machines Corp.		1.6%
Bank of America Corp.		1.6%
JPMorgan Chase & Co.		1.6%
Berkshire Hathaway, Inc., Class B		1.5%
Total		17.9%

Manager views and portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Source: Morningstar, Inc. This style assessment is the result of evaluating the fund based on a ten-factor model for value and growth characteristics. The fund’s market capitalization placement is determined by the geometric mean of its holdings’ market capitalizations. The assessment reflects the fund’s portfolio as of 2/28/10, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.
²		This list is not a recommendation of any security by the investment adviser.
³		Not annualized.

6 Schwab U.S. ETFs

Schwab U.S. Large-Cap ETF^tm

Performance Summary as of 02/28/10

November 3, 2009 – February 28, 2010
Performance of a Hypothetical
$10,000 Investment¹

Total Returns^1,2


Fund and Inception Date	Since Inception*


Fund: Schwab U.S. Large-Cap ETF^tm (11/3/09)
NAV Return³		7.19	%
Market Price Return³		7.31	%
Dow Jones U.S. Large-Cap Total Stock Market Index^SM		7.24	%
Fund Category: Morningstar Large Blend		7.90	%

Fund Expense Ratio⁴: 0.08%


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		Source for category information: Morningstar, Inc.
³		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV return is based on the NAV of the fund, and the market return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
⁴		As stated in the prospectus.

Schwab U.S. ETFs 7

Schwab U.S. Large-Cap Growth ETF™

The Schwab U.S. Large-Cap Growth ETF seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM, which includes the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index^SM actually available to investors in the marketplace.

During the reporting period that began with the fund’s inception date of December 11, 2009, and ended February 28, 2010, the fund’s market price return was 2.17% and its NAV return was 2.09%. The comparative index, the Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM, returned 2.05% during the same period. Unlike the fund, the index return is not inclusive of operational and transactional costs. You cannot invest directly in an index.

For an explanation of market price and NAV returns, please refer to footnote 3 on the following page.

As of 02/28/10:

Style Assessment¹

Statistics


Number of Holdings		423
Weighted Average Market Cap ($ x 1,000,000)		$54,955
Price/Earnings Ratio (P/E)		23.4
Price/Book Ratio (P/B)		0.0
Portfolio Turnover Rate³		0%

Sector Weightings % of Investments


Information Technology		32.6%
Health Care		14.1%
Consumer Discretionary		11.7%
Energy		9.9%
Industrials		9.5%
Consumer Staples		8.2%
Financials		7.5%
Materials		4.8%
Utilities		0.8%
Telecommunication Services		0.8%
Other		0.1%
Total		100.0%

Top Holdings % of Net Assets²


Microsoft Corp.		4.5%
Apple, Inc.		3.6%
Berkshire Hathaway, Inc., Class B		3.0%
Cisco Systems, Inc.		2.8%
Google, Inc., Class A		2.4%
Hewlett-Packard Co.		2.4%
Wal-Mart Stores, Inc.		2.3%
PepsiCo, Inc.		1.9%
Oracle Corp.		1.9%
Schlumberger Ltd.		1.4%
Total		26.2%

Manager views and portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Source: Morningstar, Inc. This style assessment is the result of evaluating the fund based on a ten-factor model for value and growth characteristics. The fund’s market capitalization placement is determined by the geometric mean of its holdings’ market capitalizations. The assessment reflects the fund’s portfolio as of 2/28/10, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.
²		This list is not a recommendation of any security by the investment adviser.
³		Not annualized.

8 Schwab U.S. ETFs

Schwab U.S. Large-Cap Growth ETF^tm

Performance Summary as of 02/28/10

December 11, 2009 – February 28, 2010
Performance of a Hypothetical
$10,000 Investment¹

Total Returns^1,2


Fund and Inception Date	Since Inception*


Fund: Schwab U.S. Large-Cap Growth ETF^tm (12/11/09)
NAV Return³		2.09	%
Market Price Return³		2.17	%
Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM		2.05	%
Fund Category: Morningstar Large Growth		1.32	%

Fund Expense Ratio⁴: 0.15%


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		Source for category information: Morningstar, Inc.
³		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV return is based on the NAV of the fund, and the market return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
⁴		As stated in the prospectus.

Schwab U.S. ETFs 9

Schwab U.S. Large-Cap Value ETF™

The Schwab U.S. Large-Cap Value ETF seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM, which includes the large-cap value portion of the Dow Jones U.S. Total Stock Market Index^SM actually available to investors in the marketplace.

During the reporting period that began with the fund’s inception date of December 11, 2009, and ended February 28, 2010, the fund’s market price return was 0.48% and its NAV return was 0.20%. The comparative index, the Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM, returned 0.25% during the same period. Unlike the fund, the index return is not inclusive of operational and transactional costs. You cannot invest directly in an index.

For an explanation of market price and NAV returns, please refer to footnote 3 on the following page.

As of 02/28/10:

Style Assessment¹

Statistics


Number of Holdings		306
Weighted Average Market Cap ($ x 1,000,000)		$89,330
Price/Earnings Ratio (P/E)		22.9
Price/Book Ratio (P/B)		1.8
Portfolio Turnover Rate³		1%

Sector Weightings % of Investments


Financials		24.2%
Consumer Staples		13.5%
Energy		11.9%
Health Care		11.6%
Industrials		10.6%
Consumer Discretionary		8.5%
Utilities		6.4%
Information Technology		5.7%
Telecommunication Services		4.9%
Materials		2.6%
Other		0.1%
Total		100.0%

Top Holdings % of Net Assets²


Exxon Mobil Corp.		5.5%
The Procter & Gamble Co.		3.3%
Johnson & Johnson		3.1%
General Electric Co.		3.0%
International Business Machines Corp.		3.0%
Bank of America Corp.		3.0%
JPMorgan Chase & Co.		3.0%
AT&T, Inc.		2.6%
Chevron Corp.		2.6%
Pfizer, Inc.		2.5%
Total		31.6%

Manager views and portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Source: Morningstar, Inc. This style assessment is the result of evaluating the fund based on a ten-factor model for value and growth characteristics. The fund’s market capitalization placement is determined by the geometric mean of its holdings’ market capitalizations. The assessment reflects the fund’s portfolio as of 2/28/10, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.
²		This list is not a recommendation of any security by the investment adviser.
³		Not annualized.

10 Schwab U.S. ETFs

Schwab U.S. Large-Cap Value ETF^tm

Performance Summary as of 02/28/10

December 11, 2009 – February 28, 2010
Performance of a Hypothetical
$10,000 Investment¹

Total Returns^1,2


Fund and Inception Date	Since Inception*


Fund: Schwab U.S. Large-Cap Value ETF^tm (12/11/09)
NAV Return³		0.20	%
Market Price Return³		0.48	%
Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM		0.25	%
Fund Category: Morningstar Large Value		0.63	%

Fund Expense Ratio⁴: 0.15%


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		Source for category information: Morningstar, Inc.
³		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV return is based on the NAV of the fund, and the market return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
⁴		As stated in the prospectus.

Schwab U.S. ETFs 11

Schwab U.S. Small-Cap ETF™

The Schwab U.S. Small-Cap ETF seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Small-Cap Total Stock Market Index^SM, which includes the small-cap portion of the Dow Jones U.S. Total Stock Market Index^SM actually available to investors in the marketplace.

During the reporting period that began with the fund’s inception date of November 3, 2009, and ended February 28, 2010, the fund’s market price return was 13.47% and its NAV return was 13.51%. The comparative index, the Dow Jones U.S. Small-Cap Total Stock Market Index^SM, returned 13.66% during the same period. Unlike the fund, the index return is not inclusive of operational and transactional costs. You cannot invest directly in an index.

For an explanation of market price and NAV returns, please refer to footnote 3 on the following page.

As of 02/28/10:

Style Assessment¹

Statistics


Number of Holdings		1703
Weighted Average Market Cap ($ x 1,000,000)		$1,494
Price/Earnings Ratio (P/E)		-26.8
Price/Book Ratio (P/B)		2.1
Portfolio Turnover Rate³		3%

��Sector Weightings % of Investments


Financials		22.0%
Information Technology		16.5%
Consumer Discretionary		16.1%
Industrials		15.2%
Health Care		11.5%
Energy		6.2%
Materials		5.7%
Consumer Staples		3.5%
Utilities		2.3%
Telecommunication Services		0.9%
Other		0.1%
Total		100.0%

Top Holdings % of Net Assets²


Human Genome Sciences, Inc.		0.4%
Bucyrus International, Inc.		0.4%
Sirius XM Radio, Inc.		0.3%
SL Green Realty Corp		0.3%
Massey Energy Co.		0.3%
Marshall & Ilsley Corp.		0.3%
Gannett Co., Inc.		0.3%
Huntington Bancshares, Inc.		0.3%
The Macerich Co.		0.3%
Oshkosh Corp.		0.3%
Total		3.2%

Manager views and portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Source: Morningstar, Inc. This style assessment is the result of evaluating the fund based on a ten-factor model for value and growth characteristics. The fund’s market capitalization placement is determined by the geometric mean of its holdings’ market capitalizations. The assessment reflects the fund’s portfolio as of 2/28/10, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.
²		This list is not a recommendation of any security by the investment adviser.
³		Not annualized.

12 Schwab U.S. ETFs

Schwab U.S. Small-Cap ETF^tm

Performance Summary as of 02/28/10

November 3, 2009 – February 28, 2010
Performance of a Hypothetical
$10,000 Investment¹

Total Returns^1,2


Fund and Inception Date	Since Inception*


Fund: Schwab U.S. Small-Cap ETF^tm (11/3/09)
NAV Return³		13.51	%
Market Price Return³		13.47	%
Dow Jones U.S. Small-Cap Total Stock Market Index^SM		13.66	%
Fund Category: Morningstar Small Blend		14.01	%

Fund Expense Ratio⁴: 0.15%


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		Source for category information: Morningstar, Inc.
³		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV return is based on the NAV of the fund, and the market return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
⁴		As stated in the prospectus.

Schwab U.S. ETFs 13

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

As a fund shareholder, you incur two types of costs: transaction costs, such as redemption fees, and ongoing costs, such as management fees, transfer agent and shareholder services fees, and other fund expenses.

The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for the period since inception and held through February 28, 2010.

Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ¸ $1,000 = 8.6), then multiply the result by the number given for your fund or share class under the heading entitled “Expenses Paid During Period.”

Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.

You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as redemption fees. If these transactional costs were included, your costs would have been higher.


					Ending
					Account Value
	Expense Ratio		Beginning		(Net of Expenses)		Expenses Paid
	(Annualized)		Account Value		at 2/28/10		During Period



Schwab U.S. Broad Market ETF^tm¹
Actual Return		0.08%	$	1,000	$	1,078.50	$	0.27
Hypothetical 5% Return		0.08%	$	1,000	$	1,015.91	$	0.26


Schwab U.S. Large-Cap ETF^tm¹
Actual Return		0.08%	$	1,000	$	1,071.90	$	0.27
Hypothetical 5% Return		0.08%	$	1,000	$	1,015.91	$	0.26


Schwab U.S. Large-Cap Growth ETF^tm²
Actual Return		0.15%	$	1,000	$	1,020.90	$	0.33
Hypothetical 5% Return		0.15%	$	1,000	$	1,010.63	$	0.33


Schwab U.S. Large-Cap Value ETF^tm²
Actual Return		0.15%	$	1,000	$	1,002.00	$	0.33
Hypothetical 5% Return		0.15%	$	1,000	$	1,010.63	$	0.33


Schwab U.S. Small-Cap ETF^tm¹
Actual Return		0.15%	$	1,000	$	1,135.10	$	0.52
Hypothetical 5% Return		0.15%	$	1,000	$	1,015.68	$	0.49


¹	Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 118 days of the period, and divided by the 365 days of the fiscal year. The fund’s inception date was 11/3/09.

²	Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 80 days of the period, and divided by the 365 days of the fiscal year. The fund’s inception date was 12/11/09.

14 Schwab U.S. ETFs

Schwab U.S. Broad Market ETF ^tm

Financial Statements

Financial Highlights


	10/30/09¹–
	2/28/10*


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.12
Net realized and unrealized gains (losses)		1.24

Total from investment operations		1.36
Less distributions:
Distributions from net investment income		(0.06	)

Net asset value at end of period		26.30

Total return (%)		5.44	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.08	³
Gross operating expenses		0.08	³
Net investment income (loss)		2.01	³
Portfolio turnover rate⁴		2	²
Net assets, end of period ($ x 1,000)		151,237

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Portfolio turnover rate excludes securities received or delivered from processing of in kind creations or redemptions.

See financial notes 15

Schwab U.S. Broad Market ETF

Portfolio Holdings as of February 28, 2010 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The schedule of portfolio holdings filed on a fund’s most recent Form N-Q is also available by visiting Schwab’s website at www.schwab.com/schwabetfs.


				Cost		Value
Holdings by Category				($)		($)

	99	.7%	Common Stock		149,642,344		150,838,846
	0	.1%	Other Investment Company		60,408		60,408
		—%	Rights		—		453


	99	.8%	Total Investments		149,702,752		150,899,707
	0	.2%	Other Assets and Liabilities, Net				337,269


	100	.0%	Net Assets				151,236,976


	Number		Value
Security	of Shares		($)

Common Stock 99.7% of net assets

Automobiles & Components 0.7%
BorgWarner, Inc. *		1,495		56,003
Cooper Tire & Rubber Co.		1,150		20,171
Dana Holding Corp. *		1,955		22,228
Federal-Mogul Corp. *		805		15,561
Ford Motor Co. *		41,745		490,086
Gentex Corp.		1,725		33,482
Harley-Davidson, Inc.		2,990		73,584
Johnson Controls, Inc.		8,395		261,084
Lear Corp. *		345		23,898
Tenneco, Inc. *		690		13,910
The Goodyear Tire & Rubber Co. *		3,680		47,803
Thor Industries, Inc.		575		19,510
TRW Automotive Holdings Corp. *		1,150		30,901
WABCO Holdings, Inc.		805		21,526

				1,129,747

Banks 3.4%
Associated Banc-Corp		1,840		23,754
Astoria Financial Corp.		1,840		24,417
BancorpSouth, Inc.		920		17,912
Bank of Hawaii Corp.		575		24,271
BB&T Corp.		8,625		246,071
Beneficial Mutual Bancorp, Inc. *		1,955		18,357
BOK Financial Corp.		460		21,151
CapitalSource, Inc.		5,405		29,727
Capitol Federal Financial		575		19,907
City National Corp.		575		28,704
Comerica, Inc.		1,955		70,536
Commerce Bancshares, Inc.		805		32,611
Community Bank System, Inc.		460		10,309
Cullen/Frost Bankers, Inc.		690		37,363
CVB Financial Corp.		2,300		21,390
East West Bancorp, Inc.		1,150		20,148
F.N.B. Corp.		2,530		19,228
Fannie Mae *		17,825		17,647
Fifth Third Bancorp		10,120		123,565
First Citizens BancShares, Inc., Class A		115		21,044
First Financial Bancorp		1,380		25,613
First Financial Bankshares, Inc.		345		18,061
First Horizon National Corp. *		2,760		35,328
First Niagara Financial Group, Inc.		2,300		32,292
FirstMerit Corp.		1,035		21,880
Freddie Mac *		9,085		10,720
Fulton Financial Corp.		2,185		21,020
Glacier Bancorp, Inc.		1,380		20,010
Hancock Holding Co.		460		18,547
Home Bancshares, Inc.		345		8,377
Hudson City Bancorp, Inc.		6,095		82,404
Huntington Bancshares, Inc.		8,855		42,593
IBERIABANK Corp.		230		13,135
International Bancshares Corp.		1,150		24,380
Investors Bancorp, Inc. *		1,725		22,201
Kearny Financial Corp.		1,840		18,455
KeyCorp		11,500		82,225
M&T Bank Corp.		920		71,236
Marshall & Ilsley Corp.		6,210		43,967
MB Financial, Inc.		1,035		21,062
MGIC Investment Corp. *		1,725		13,214
National Penn Bancshares, Inc.		2,875		19,809
NBT Bancorp, Inc.		805		17,098
New York Community Bancorp, Inc.		5,405		83,723
NewAlliance Bancshares, Inc.		1,610		19,288
Northfield Bancorp, Inc.		690		9,667
Northwest Bancshares, Inc.		1,725		20,372
Ocwen Financial Corp. *		1,610		17,404
Old National Bancorp		1,725		19,596
PacWest Bancorp		575		11,673
Park National Corp.		345		18,406
People’s United Financial, Inc.		4,370		68,915
PNC Financial Services Group, Inc.		6,555		352,397
Popular, Inc.		8,050		15,537
PrivateBancorp, Inc.		1,035		13,455
Prosperity Bancshares, Inc.		575		24,052
Provident Financial Services, Inc.		920		10,083
Regions Financial Corp.		15,410		104,017
Signature Bank *		575		21,407
SunTrust Banks, Inc.		6,325		150,598
SVB Financial Group *		460		20,498
Synovus Financial Corp.		8,165		23,270
TCF Financial Corp.		1,495		21,588
TFS Financial Corp.		1,610		20,688
Trustmark Corp.		920		20,976
U.S. Bancorp		24,265		597,162
UMB Financial Corp.		460		17,623
Umpqua Holdings Corp.		1,840		22,963
United Bankshares, Inc.		920		22,650
Valley National Bancorp		1,725		24,840
Washington Federal, Inc.		1,380		26,896
Webster Financial Corp.		1,495		23,920
Wells Fargo & Co.		62,215		1,700,958
Westamerica Bancorp		345		18,934
Whitney Holding Corp.		2,300		29,555
Wilmington Trust Corp.		1,380		19,900

16 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Wintrust Financial Corp.		575		19,573
Zions Bancorp		1,725		31,981

				5,136,304

Capital Goods 7.8%
3M Co.		8,165		654,425
A.O. Smith Corp.		460		20,838
A123 Systems, Inc. *		920		15,152
AAR CORP. *		460		10,433
Actuant Corp., Class A		1,035		18,744
Acuity Brands, Inc.		575		22,414
Aecom Technology Corp. *		1,265		34,281
Aerovironment, Inc. *		345		8,366
AGCO Corp. *		1,150		39,387
Aircastle Ltd.		1,035		10,071
Alliant Techsystems, Inc. *		460		36,547
American Science & Engineering, Inc.		115		8,546
American Superconductor Corp. *		575		16,100
AMETEK, Inc.		1,380		53,875
Applied Industrial Technologies, Inc.		920		20,737
Armstrong World Industries, Inc. *		460		16,937
Badger Meter, Inc.		230		8,264
Baldor Electric Co.		690		21,680
Barnes Group, Inc.		1,035		16,622
BE Aerospace, Inc. *		1,380		35,742
Beacon Roofing Supply, Inc. *		575		10,005
Belden, Inc.		690		14,614
Brady Corp., Class A		575		16,112
Briggs & Stratton Corp.		920		16,109
Bucyrus International, Inc.		920		57,555
Carlisle Cos., Inc.		805		27,612
Caterpillar, Inc.		7,935		452,692
CLARCOR, Inc.		690		22,598
Crane Co.		690		21,852
Cubic Corp.		460		15,865
Cummins, Inc.		2,300		130,594
Curtiss-Wright Corp.		575		18,429
Danaher Corp.		3,105		229,677
Deere & Co.		5,290		303,117
DigitalGlobe, Inc. *		805		19,207
Donaldson Co., Inc.		920		37,959
Dover Corp.		2,300		104,098
DynCorp International, Inc., Class A *		1,035		11,592
Eaton Corp.		2,070		141,008
EMCOR Group, Inc. *		805		18,531
Emerson Electric Co.		9,545		451,860
EnerSys *		805		18,346
ESCO Technologies, Inc.		460		15,047
Esterline Technologies Corp. *		460		18,929
Fastenal Co.		1,725		76,538
First Solar, Inc. *		575		60,892
Flowserve Corp.		690		69,062
Fluor Corp.		2,300		98,440
Franklin Electric Co., Inc.		345		9,839
Gardner Denver, Inc.		690		30,091
GATX Corp.		690		18,389
General Dynamics Corp.		4,140		300,357
General Electric Co.		133,975		2,151,638
Goodrich Corp.		1,610		105,664
Graco, Inc.		805		22,065
GrafTech International Ltd. *		1,610		20,109
Granite Construction, Inc.		690		19,065
Griffon Corp. *		805		9,966
GT Solar International, Inc. *		1,610		9,580
Harsco Corp.		1,035		31,071
HEICO Corp., Class A		575		21,333
Hexcel Corp. *		1,610		17,742
Honeywell International, Inc.		8,855		355,617
Hubbell, Inc., Class B		690		32,326
IDEX Corp.		1,035		32,085
II-VI, Inc. *		690		19,348
Illinois Tool Works, Inc.		5,405		246,036
Insituform Technologies, Inc., Class A *		460		11,298
ITT Corp.		2,300		117,829
Jacobs Engineering Group, Inc. *		1,610		62,468
Joy Global, Inc.		1,380		70,104
Kaman Corp.		345		8,263
Kaydon Corp.		575		18,688
KBR, Inc.		2,070		42,870
Kennametal, Inc.		1,035		26,962
L-3 Communications Holdings, Inc.		1,495		136,673
Lennox International, Inc.		690		29,118
Lincoln Electric Holdings, Inc.		460		21,942
Lockheed Martin Corp.		3,910		304,042
Masco Corp.		4,830		64,577
MasTec, Inc. *		1,495		19,794
McDermott International, Inc. *		2,990		68,321
Moog, Inc., Class A *		690		23,432
MSC Industrial Direct Co., Class A		575		26,203
Mueller Industries, Inc.		690		15,442
Mueller Water Products, Inc., Class A		1,725		7,987
Navistar International Corp. *		690		27,020
Nordson Corp.		345		22,701
Northrop Grumman Corp.		3,680		225,437
Orbital Sciences Corp. *		690		12,731
Oshkosh Corp. *		1,150		43,838
Otter Tail Corp.		805		16,092
Owens Corning, Inc. *		1,265		29,765
PACCAR, Inc.		4,370		154,479
Pall Corp.		1,495		59,008
Parker Hannifin Corp.		2,070		124,842
Pentair, Inc.		1,265		41,188
Precision Castparts Corp.		1,840		207,460
Quanex Building Products Corp.		460		7,167
Quanta Services, Inc. *		2,530		48,070
Raytheon Co.		4,830		271,639
Regal-Beloit Corp.		460		25,953
Robbins & Myers, Inc.		805		19,457
Rockwell Automation, Inc.		1,840		99,526
Rockwell Collins, Inc.		1,955		110,027
Roper Industries, Inc.		1,150		63,756
RSC Holdings, Inc. *		1,265		8,918
Simpson Manufacturing Co., Inc.		690		16,960
Snap-On, Inc.		690		29,132
Spirit AeroSystems Holdings, Inc., Class A *		1,265		24,187
SPX Corp.		690		41,048
Stanley, Inc. *		345		8,697
SunPower Corp., Class A *		1,265		23,719
Teledyne Technologies, Inc. *		575		21,660
Terex Corp. *		1,495		29,108
Textainer Group Holdings Ltd.		575		11,874
Textron, Inc.		3,565		71,015

See financial notes 17

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
The Boeing Co.		8,280		522,965
The Manitowoc Co., Inc.		1,955		22,795
The Middleby Corp. *		345		16,005
The Shaw Group, Inc. *		1,035		35,914
The Stanley Works		1,035		59,254
The Timken Co.		1,035		27,148
The Toro Co.		460		20,249
Thomas & Betts Corp. *		690		24,909
TransDigm Group, Inc.		460		23,101
Trinity Industries, Inc.		1,035		17,419
Triumph Group, Inc.		345		18,057
Tutor Perini Corp. *		920		18,188
United Technologies Corp.		11,040		757,896
Universal Forest Products, Inc.		230		8,105
URS Corp. *		1,035		48,127
USG Corp. *		1,380		18,602
Valmont Industries, Inc.		230		16,376
W.W. Grainger, Inc.		805		81,828
Wabtec Corp.		575		21,931
Watsco, Inc.		345		19,955
Watts Water Technologies, Inc., Class A		575		16,767
WESCO International, Inc. *		690		19,934
Woodward Governor Co.		690		19,865

				11,807,699

Commercial & Professional Services 1.0%
ABM Industries, Inc.		920		18,842
Avery Dennison Corp.		1,380		43,608
Cintas Corp.		1,610		39,912
Clean Harbors, Inc. *		345		19,610
Copart, Inc. *		920		32,826
Corrections Corp. of America *		1,380		29,532
CoStar Group, Inc. *		460		18,101
Covanta Holding Corp. *		1,725		29,066
Deluxe Corp.		1,380		24,771
EnergySolutions, Inc.		2,185		13,285
EnerNOC, Inc. *		575		15,203
Equifax, Inc.		1,610		51,939
FTI Consulting, Inc. *		690		25,351
Healthcare Services Group, Inc.		920		20,203
Herman Miller, Inc.		1,150		20,930
HNI Corp.		690		16,401
IHS, Inc., Class A *		575		29,785
Iron Mountain, Inc. *		2,300		59,524
Korn/Ferry International *		1,150		19,642
M&F Worldwide Corp. *		230		7,450
Manpower, Inc.		920		47,398
Mine Safety Appliances Co.		690		17,519
Monster Worldwide, Inc. *		1,725		24,064
Navigant Consulting, Inc. *		805		9,362
Pitney Bowes, Inc.		2,645		60,570
R.R. Donnelley & Sons Co.		2,645		52,609
Republic Services, Inc.		3,910		110,027
Resources Connection, Inc. *		1,035		17,636
RINO International Corp. *		690		13,945
Robert Half International, Inc.		1,955		54,545
Rollins, Inc.		920		19,550
Steelcase, Inc., Class A		3,220		21,155
Stericycle, Inc. *		1,035		57,111
Sykes Enterprises, Inc. *		805		19,167
Tetra Tech, Inc. *		690		14,435
The Brink’s Co.		690		17,581
The Corporate Executive Board Co.		690		15,787
The Dun & Bradstreet Corp.		690		48,410
The Geo Group, Inc. *		805		15,915
Towers Watson & Co., Class A		575		25,398
TrueBlue, Inc. *		690		9,156
United Stationers, Inc. *		345		19,703
Verisk Analytics, Inc., Class A *		1,035		29,291
Waste Connections, Inc. *		1,035		34,797
Waste Management, Inc.		5,865		193,662

				1,484,774

Consumer Durables & Apparel 1.3%
American Greetings Corp., Class A		805		15,351
Brunswick Corp.		1,955		22,561
Carter’s, Inc. *		805		23,071
Coach, Inc.		4,140		150,862
Columbia Sportswear Co.		460		21,086
D.R. Horton, Inc.		3,680		45,485
Deckers Outdoor Corp. *		230		27,646
Eastman Kodak Co. *		5,290		31,423
Fortune Brands, Inc.		1,955		85,688
Fossil, Inc. *		690		25,013
Garmin Ltd.		1,495		47,765
Hanesbrands, Inc. *		1,150		29,819
Harman International Industries, Inc.		805		34,728
Hasbro, Inc.		1,495		53,491
Iconix Brand Group, Inc. *		1,610		20,978
Jarden Corp.		1,035		33,182
Jones Apparel Group, Inc.		1,150		19,389
KB HOME		1,265		20,594
Leggett & Platt, Inc.		2,070		39,226
Lennar Corp., Class A		1,955		32,082
M.D.C Holdings, Inc.		575		19,677
Mattel, Inc.		4,715		103,683
Mohawk Industries, Inc. *		690		35,590
Newell Rubbermaid, Inc.		3,680		50,600
NIKE, Inc., Class B		3,450		233,220
NVR, Inc. *		115		81,454
Phillips-Van Heusen Corp.		690		30,029
Polaris Industries, Inc.		460		21,040
Polo Ralph Lauren Corp.		690		55,152
Pool Corp.		1,035		20,679
Pulte Homes, Inc. *		4,370		47,327
Skechers U.S.A., Inc., Class A *		460		14,136
Tempur-Pedic International, Inc. *		1,035		29,394
The Black & Decker Corp.		690		50,004
The Ryland Group, Inc.		1,035		23,484
The Timberland Co., Class A *		575		10,632
The Warnaco Group, Inc. *		575		24,001
Toll Brothers, Inc. *		1,725		32,482
Tupperware Brands Corp.		805		37,618
Under Armour, Inc., Class A *		690		17,981
UniFirst Corp.		230		12,089
VF Corp.		1,150		88,987
Whirlpool Corp.		920		77,427
Wolverine World Wide, Inc.		690		19,023

				1,915,149

18 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


		Number		Value
Security		of Shares		($)

Consumer Services 2.1%
Ameristar Casinos, Inc.			1,150		17,353
Apollo Group, Inc., Class A *			1,610		96,407
Bally Technologies, Inc. *			690		28,573
Bob Evans Farms, Inc.			690		19,672
Boyd Gaming Corp. *			2,300		17,572
Bridgepoint Education, Inc. *			1,265		21,353
Brink’s Home Security Holdings, Inc. *			575		24,064
Brinker International, Inc.			1,495		27,074
Buffalo Wild Wings, Inc. *			460		20,217
Burger King Holdings, Inc.			1,150		20,573
Capella Education Co. *			230		19,106
Career Education Corp. *			805		22,395
Carnival Corp.			5,405		194,364
Chipotle Mexican Grill, Inc. *			345		36,125
Choice Hotels International, Inc.			575		18,998
Coinstar, Inc. *			575		17,066
Corinthian Colleges, Inc. *			1,035		16,788
Cracker Barrel Old Country Store, Inc.			345		15,070
Darden Restaurants, Inc.			1,725		69,949
DeVry, Inc.			805		50,836
Education Management Corp. *			460		9,159
Gaylord Entertainment Co. *			460		10,355
Grand Canyon Education, Inc. *			575		12,506
H&R Block, Inc.			4,255		73,526
Hillenbrand, Inc.			920		18,446
Hyatt Hotels Corp., Class A *			460		15,378
International Game Technology			3,910		68,620
International Speedway Corp., Class A			690		18,430
ITT Educational Services, Inc. *			460		50,158
Jack in the Box, Inc. *			920		19,430
Las Vegas Sands Corp. *			5,750		95,622
Life Time Fitness, Inc. *			805		20,415
Lincoln Educational Services Corp. *			115		2,565
Marriott International, Inc., Class A			3,910		106,000
Matthews International Corp., Class A			460		15,419
McDonald’s Corp.			13,800		881,130
MGM MIRAGE *	��		3,335		35,151
Orient-Express Hotels Ltd., Class A *			1,150		13,145
P.F. Chang’s China Bistro, Inc. *			230		9,761
Panera Bread Co., Class A *			345		25,113
Penn National Gaming, Inc. *			805		18,628
Regis Corp.			1,150		19,009
Royal Caribbean Cruises Ltd. *			1,725		48,766
Scientific Games Corp., Class A *			1,380		23,308
Service Corp. International			3,220		25,953
Sotheby’s			1,265		30,739
Starbucks Corp. *			9,315		213,407
Starwood Hotels & Resorts Worldwide, Inc.			2,185		84,559
Strayer Education, Inc.			230		52,171
The Cheesecake Factory, Inc. *			920		21,758
Vail Resorts, Inc. *			460		16,565
Weight Watchers International, Inc.			690		17,747
Wendy’s/Arby’s Group, Inc., Class A			4,715		23,009
WMS Industries, Inc. *			690		26,172
Wyndham Worldwide Corp.			2,300		52,877
Wynn Resorts Ltd.			920		58,484
Yum! Brands, Inc.			5,865		197,768

					3,184,804

Diversified Financials 7.0%
Affiliated Managers Group, Inc. *			460		32,720
American Express Co.			13,455		513,846
AmeriCredit Corp. *			1,035		23,029
Ameriprise Financial, Inc.			3,220		128,897
Artio Global Investors, Inc.			690		16,822
Bank of America Corp.			125,810		2,095,995
Bank of New York Mellon Corp.			15,180		432,934
BlackRock, Inc.			575		125,810
Capital One Financial Corp.			5,865		221,404
Cash America International, Inc.			575		22,040
CIT Group, Inc. *			2,185		79,600
Citigroup, Inc. *			260,130		884,442
CME Group, Inc.			805		242,860
Cohen & Steers, Inc.			920		20,019
Credit Acceptance Corp. *			345		13,859
Discover Financial Services			6,900		94,185
Duff & Phelps Corp., Class A			1,035		17,264
ETRADE Financial Corp.			22,540		36,289
Eaton Vance Corp.			1,495		45,134
Federated Investors, Inc., Class B			1,265		31,638
Franklin Resources, Inc.			2,070		210,560
GAMCO Investors, Inc., Class A			230		10,007
Greenhill & Co., Inc.			345		24,650
IntercontinentalExchange, Inc. *			920		98,707
Invesco Ltd.			5,520		108,192
Investment Technology Group, Inc. *			690		11,744
Janus Capital Group, Inc.			2,300		28,750
Jefferies Group, Inc. *			1,380		34,445
JPMorgan Chase & Co.			49,910		2,094,723
KBW, Inc. *			575		13,662
Knight Capital Group, Inc., Class A *			1,150		18,561
Legg Mason, Inc.			2,070		53,509
Leucadia National Corp. *			2,530		60,062
MF Global Holdings Ltd. *			2,530		17,508
Moody’s Corp.			2,300		61,226
Morgan Stanley			15,755		443,976
MSCI, Inc., Class A *			1,265		37,925
Northern Trust Corp.			3,105		165,465
NYSE Euronext			3,335		87,977
optionsXpress Holdings, Inc.			1,150		18,182
PHH Corp. *			1,150		21,286
PICO Holdings, Inc. *			575		19,573
Piper Jaffray Cos., Inc. *			345		14,935
Raymond James Financial, Inc.			1,265		32,713
Riskmetrics Group, Inc. *			1,150		21,424
SEI Investments Co.			2,070		36,473
SLM Corp. *			5,980		66,856
State Street Corp.			6,210		278,891
Stifel Financial Corp. *			345		18,872
T. Rowe Price Group, Inc.			3,220		163,222
TD Ameritrade Holding Corp. *			2,990		52,295
The Charles Schwab Corp. (a)			11,730		214,776
The Goldman Sachs Group, Inc.			5,520		863,052
The NASDAQ OMX Group, Inc. *			1,955		36,422
The Student Loan Corp.			345		12,468
Waddell & Reed Financial, Inc., Class A			1,035		34,031

					10,565,907

See financial notes 19

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Energy 10.5%
Alpha Natural Resources, Inc. *		2,070		95,241
Anadarko Petroleum Corp.		6,325		443,572
Apache Corp.		4,255		440,988
Arch Coal, Inc.		2,070		46,554
Arena Resources, Inc. *		460		19,058
Atlas Energy, Inc. *		1,035		33,782
Atwood Oceanics, Inc. *		690		23,087
Baker Hughes, Inc.		4,025		192,878
Berry Petroleum Co., Class A		690		18,492
Bill Barrett Corp. *		575		19,498
BJ Services Co.		3,680		80,408
BP Prudhoe Bay Royalty Trust		230		20,557
BPZ Resources, Inc. *		1,495		11,691
Brigham Exploration Co. *		1,955		32,101
Bristow Group, Inc. *		575		20,821
Cabot Oil & Gas Corp.		1,380		55,393
Cameron International Corp. *		3,220		132,439
CARBO Ceramics, Inc.		345		21,055
Chesapeake Energy Corp.		8,165		216,944
Chevron Corp.		25,415		1,837,504
Cimarex Energy Co.		1,150		68,724
Clean Energy Fuels Corp. *		805		14,522
CNX Gas Corp. *		345		9,036
Cobalt International Energy, Inc. *		805		9,934
Complete Production Services, Inc. *		1,035		14,449
Comstock Resources, Inc. *		575		19,849
Concho Resources, Inc. *		1,035		48,076
ConocoPhillips		16,675		800,400
CONSOL Energy, Inc.		2,300		115,828
Contango Oil & Gas Co. *		115		5,929
Continental Resources, Inc. *		460		18,161
Denbury Resources, Inc. *		3,335		46,957
Devon Energy Corp.		5,405		372,188
Diamond Offshore Drilling, Inc.		805		70,293
Dresser-Rand Group, Inc. *		1,150		35,547
Dril-Quip, Inc. *		345		18,878
El Paso Corp.		9,085		95,120
Encore Acquisition Co. *		690		34,176
EOG Resources, Inc.		3,220		302,841
EXCO Resources, Inc.		2,185		41,318
Exterran Holdings, Inc. *		805		18,314
Exxon Mobil Corp.		60,260		3,916,900
FMC Technologies, Inc. *		1,610		90,434
Forest Oil Corp. *		1,380		37,398
Frontier Oil Corp.		1,380		17,098
Gulfport Energy Corp. *		1,150		10,465
Halliburton Co.		11,500		346,725
Helix Energy Solutions Group, Inc. *		1,265		14,560
Helmerich & Payne, Inc.		1,265		51,258
Hess Corp.		3,910		229,908
Holly Corp.		575		14,766
ION Geophysical Corp. *		2,185		10,007
Key Energy Services, Inc. *		2,185		22,156
Lufkin Industries, Inc.		230		16,802
Marathon Oil Corp.		9,085		263,011
Massey Energy Co.		1,150		49,531
Murphy Oil Corp.		2,415		125,338
Nabors Industries Ltd. *		3,795		83,642
National-Oilwell Varco, Inc.		5,405		234,955
Newfield Exploration Co. *		1,725		88,096
Noble Energy, Inc.		2,300		167,072
Occidental Petroleum Corp.		10,350		826,447
Oceaneering International, Inc. *		690		41,711
Oil States International, Inc. *		575		24,737
Overseas Shipholding Group, Inc.		460		20,465
Patriot Coal Corp. *		1,495		24,907
Patterson-UTI Energy, Inc.		2,070		31,961
Peabody Energy Corp.		3,565		163,883
Penn Virginia Corp.		805		20,367
Petrohawk Energy Corp. *		4,025		86,135
Pioneer Drilling Co. *		1,495		10,674
Pioneer Natural Resources Co.		1,495		69,742
Plains Exploration & Production Co. *		1,840		60,370
Pride International, Inc. *		2,070		57,919
Quicksilver Resources, Inc. *		1,610		24,021
Range Resources Corp.		2,070		104,763
Rosetta Resources, Inc. *		805		15,078
Rowan Cos., Inc. *		1,380		35,908
SandRidge Energy, Inc. *		2,300		18,262
Schlumberger Ltd.		15,180		927,498
SEACOR Holdings, Inc. *		230		17,567
Ship Finance International Ltd.		920		14,628
Smith International, Inc.		2,760		113,132
Southern Union Co.		1,265		30,284
Southwestern Energy Co. *		4,370		185,943
Spectra Energy Corp.		8,165		177,997
St. Mary Land & Exploration Co.		805		26,227
Sunoco, Inc.		1,495		39,423
Superior Energy Services, Inc. *		1,035		21,393
Swift Energy Co. *		460		13,703
Teekay Corp.		920		23,129
Tesco Corp. *		1,035		14,107
Tesoro Corp.		1,840		21,933
TETRA Technologies, Inc. *		460		4,637
The Williams Cos., Inc.		7,360		158,534
Tidewater, Inc.		690		30,753
Ultra Petroleum Corp. *		1,955		89,402
Unit Corp. *		575		24,995
Valero Energy Corp.		7,130		124,918
Whiting Petroleum Corp. *		690		51,647
World Fuel Services Corp.		690		18,230
XTO Energy, Inc.		7,360		336,352

				15,816,507

Food & Staples Retailing 2.4%
BJ’s Wholesale Club, Inc. *		690		24,957
Casey’s General Stores, Inc.		575		17,486
Costco Wholesale Corp.		5,520		336,554
CVS Caremark Corp.		17,940		605,475
Nash Finch Co.		230		8,112
PriceSmart, Inc.		460		9,780
Rite Aid Corp. *		14,490		22,025
Ruddick Corp.		690		20,217
Safeway, Inc.		5,175		128,961
SUPERVALU, Inc.		230		3,512
Sysco Corp.		7,360		212,704
The Andersons, Inc.		345		11,144
The Kroger Co.		7,705		170,281
United Natural Foods, Inc. *		690		20,265
Wal-Mart Stores, Inc.		27,715		1,498,550
Walgreen Co.		12,535		441,733

20 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Weis Markets, Inc.		460		16,054
Whole Foods Market, Inc. *		1,495		53,058
Winn-Dixie Stores, Inc. *		1,610		17,613

				3,618,481

Food, Beverage & Tobacco 5.1%
Altria Group, Inc.		25,990		522,919
Archer-Daniels-Midland Co.		7,360		216,089
Brown-Forman Corp., Class B		1,380		72,257
Bunge Ltd.		1,610		95,940
Campbell Soup Co.		2,645		88,158
Central European Distribution Corp. *		805		26,847
Chiquita Brands International, Inc. *		1,035		15,070
Coca-Cola Enterprises, Inc.		4,140		105,777
ConAgra Foods, Inc.		5,635		137,832
Constellation Brands, Inc., Class A *		2,530		38,051
Corn Products International, Inc.		1,035		33,720
Dean Foods Co. *		2,185		31,879
Del Monte Foods Co.		2,415		28,304
Dole Food Co., Inc. *		1,265		14,838
Dr. Pepper Snapple Group, Inc.		2,875		91,281
Flowers Foods, Inc.		1,035		26,382
Fresh Del Monte Produce, Inc. *		805		15,625
General Mills, Inc.		3,910		281,559
Green Mountain Coffee Roasters, Inc. *		460		38,819
H.J. Heinz Co.		3,910		179,469
Hansen Natural Corp. *		920		38,272
Hormel Foods Corp.		920		37,821
J&J Snack Foods Corp.		460		19,647
Kellogg Co.		2,990		155,928
Kraft Foods, Inc., Class A		20,240		575,423
Lancaster Colony Corp.		345		19,851
Lance, Inc.		690		14,966
Lorillard, Inc.		2,070		151,193
McCormick & Co., Inc.		1,380		51,212
Molson Coors Brewing Co., Class B		1,955		78,943
PepsiAmericas, Inc.		805		24,134
PepsiCo, Inc.		19,895		1,242,841
Philip Morris International, Inc.		24,150		1,182,867
Pilgrim’s Pride Corp. *		345		3,112
Ralcorp Holdings, Inc. *		690		46,099
Reynolds American, Inc.		2,070		109,296
Sanderson Farms, Inc.		460		22,522
Sara Lee Corp.		8,395		113,836
Smithfield Foods, Inc. *		1,955		33,645
The Coca-Cola Co.		27,025		1,424,758
The Hain Celestial Group, Inc. *		920		14,600
The Hershey Co.		1,955		77,731
The J.M. Smucker Co.		1,495		89,222
The Pepsi Bottling Group, Inc.		1,725		65,947
Tootsie Roll Industries, Inc.		690		18,775
TreeHouse Foods, Inc. *		460		19,794
Tyson Foods, Inc., Class A		3,565		60,748
Universal Corp.		460		24,403
Vector Group Ltd.		1,265		18,254

				7,796,656

Health Care Equipment & Services 4.7%
Aetna, Inc.		5,635		168,994
AGA Medical Holdings, Inc. *		690		9,246
Align Technology, Inc. *		1,035		18,734
Allscripts-Misys Healthcare Solutions, Inc. *		920		16,459
Amedisys, Inc. *		460		26,519
American Medical Systems Holdings, Inc. *		1,150		20,838
AMERIGROUP Corp. *		805		21,155
AmerisourceBergen Corp.		3,795		106,412
AmSurg Corp. *		805		16,631
athenahealth, Inc. *		460		16,946
Baxter International, Inc.		7,705		438,646
Beckman Coulter, Inc.		920		60,315
Becton, Dickinson & Co.		2,875		223,876
Boston Scientific Corp. *		19,205		148,647
Brookdale Senior Living, Inc. *		1,150		20,677
C.R. Bard, Inc.		1,265		105,982
Cardinal Health, Inc.		4,600		156,262
CareFusion Corp. *		2,300		58,052
Catalyst Health Solutions, Inc. *		575		21,672
Centene Corp. *		1,035		18,495
Cerner Corp. *		805		66,775
Chemed Corp.		345		18,478
CIGNA Corp.		3,450		118,197
Community Health Systems, Inc. *		1,265		43,352
CONMED Corp. *		805		17,613
Coventry Health Care, Inc. *		1,955		45,317
Cyberonics, Inc. *		460		8,211
DaVita, Inc. *		1,265		77,937
DENTSPLY International, Inc.		1,840		60,886
Eclipsys Corp. *		920		17,121
Edwards Lifesciences Corp. *		690		63,363
Emdeon, Inc., Class A *		1,150		17,940
Emergency Medical Services Corp., Class A *		345		17,961
Emeritus Corp. *		805		14,120
ev3, Inc. *		1,495		21,752
Express Scripts, Inc. *		3,220		309,152
Gen-Probe, Inc. *		575		25,921
Genoptix, Inc. *		460		14,982
Gentiva Health Services, Inc. *		690		19,120
Haemonetics Corp. *		345		18,454
Health Management Associates, Inc., Class A *		3,335		24,312
Health Net, Inc. *		1,265		29,209
HEALTHSOUTH Corp. *		1,150		19,895
Healthspring, Inc. *		690		12,703
Henry Schein, Inc. *		1,150		65,354
Hill-Rom Holdings, Inc.		805		21,123
HMS Holdings Corp. *		460		21,178
Hologic, Inc. *		3,220		55,545
Hospira, Inc. *		2,070		108,323
Humana, Inc. *		2,185		103,416
IDEXX Laboratories, Inc. *		805		42,512
Immucor, Inc. *		1,035		20,007
Integra LifeSciences Holdings Corp. *		575		22,885
Intuitive Surgical, Inc. *		460		159,684
Invacare Corp.		805		21,960
Inverness Medical Innovations, Inc. *		1,035		40,386
Kindred Healthcare, Inc. *		1,150		20,033
Kinetic Concepts, Inc. *		805		33,746

See financial notes 21

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Laboratory Corp. of America Holdings *		1,380		101,168
Landauer, Inc.		115		6,989
LHC Group, Inc. *		230		6,923
LifePoint Hospitals, Inc. *		690		21,045
Lincare Holdings, Inc. *		805		32,329
Magellan Health Services, Inc. *		575		24,104
Masimo Corp. *		690		19,106
McKesson Corp.		3,450		204,067
MedAssets, Inc. *		805		17,428
Medco Health Solutions, Inc. *		5,980		378,175
MEDNAX, Inc. *		575		30,762
Medtronic, Inc.		14,030		608,902
Meridian Bioscience, Inc.		805		17,839
Omnicare, Inc.		1,495		40,470
Owens & Minor, Inc.		575		25,674
Patterson Cos., Inc. *		1,265		37,545
Phase Forward, Inc. *		1,265		15,091
PSS World Medical, Inc. *		805		16,977
Psychiatric Solutions, Inc. *		1,035		22,201
Quality Systems, Inc.		345		19,748
Quest Diagnostics, Inc.		1,955		110,946
RehabCare Group, Inc. *		460		12,806
ResMed, Inc. *		920		52,514
Select Medical Holdings Corp. *		1,840		15,070
Sirona Dental Systems, Inc. *		575		20,637
St. Jude Medical, Inc. *		4,370		167,021
Stryker Corp.		3,910		207,621
Teleflex, Inc.		460		28,032
Tenet Healthcare Corp. *		6,210		32,727
The Cooper Cos., Inc.		575		23,034
Thoratec Corp. *		690		19,907
UnitedHealth Group, Inc.		14,720		498,419
Universal American Financial Corp. *		1,035		14,914
Universal Health Services, Inc., Class B		1,150		35,673
Varian Medical Systems, Inc. *		1,610		78,842
VCA Antech, Inc. *		1,035		24,654
Volcano Corp. *		1,150		23,678
WellCare Health Plans, Inc. *		690		18,423
WellPoint, Inc. *		5,865		362,868
West Pharmaceutical Services, Inc.		460		17,917
Wright Medical Group, Inc. *		690		11,627
Zimmer Holdings, Inc. *		2,760		158,231
Zoll Medical Corp. *		345		8,942

				7,084,527

Household & Personal Products 2.6%
Alberto-Culver Co.		1,035		28,690
Avon Products, Inc.		5,405		164,528
Bare Escentuals, Inc. *		1,610		29,270
Central Garden & Pet Co., Class A *		920		8,786
Church & Dwight Co., Inc.		920		61,806
Colgate-Palmolive Co.		6,325		524,595
Energizer Holdings, Inc. *		920		53,314
Herbalife Ltd.		805		32,240
Kimberly-Clark Corp.		5,290		321,315
Mead Johnson Nutrition Co.		2,554		120,804
NBTY, Inc. *		690		31,326
Nu Skin Enterprises, Inc., Class A		805		21,510
Revlon, Inc., Class A *		690		10,343
The Clorox Co.		1,725		105,760
The Estee Lauder Cos., Inc., Class A		1,495		89,894
The Procter & Gamble Co.		37,145		2,350,536

				3,954,717

Insurance 4.2%
Aflac, Inc.		5,980		295,711
Alleghany Corp. *		115		31,884
Allied World Assurance Co. Holdings Ltd.		460		21,206
American Financial Group, Inc.		920		23,800
American National Insurance Co.		230		24,964
American Physicians Capital, Inc.		115		3,268
AMERISAFE, Inc. *		230		3,958
AmTrust Financial Services, Inc.		805		11,407
Aon Corp.		3,105		127,119
Arch Capital Group Ltd. *		690		51,046
Argo Group International Holdings Ltd.		460		12,802
Arthur J. Gallagher & Co.		1,380		32,747
Aspen Insurance Holdings Ltd.		920		25,999
Assurant, Inc.		1,495		45,627
Assured Guaranty Ltd.		1,610		33,971
Axis Capital Holdings Ltd.		1,840		57,868
Berkshire Hathaway, Inc., Class B *		24,262		1,944,114
Brown & Brown, Inc.		1,495		25,086
Cincinnati Financial Corp.		1,955		52,589
CNA Financial Corp. *		805		19,795
CNA Surety Corp. *		575		9,269
Conseco, Inc. *		3,565		17,754
Delphi Financial Group, Inc., Class A		805		17,171
Endurance Specialty Holdings Ltd.		690		26,537
Enstar Group Ltd. *		115		7,246
Erie Indemnity Co., Class A		460		18,225
Everest Re Group Ltd.		690		58,940
FBL Financial Group, Inc., Class A		115		2,337
Fidelity National Financial, Inc., Class A		2,990		42,607
First American Corp.		1,610		51,890
Flagstone Reinsurance Holdings Ltd.		805		9,209
Genworth Financial, Inc., Class A *		6,440		102,654
Greenlight Capital Re Ltd., Class A *		345		8,735
Hanover Insurance Group, Inc.		690		29,084
Harleysville Group, Inc.		230		7,717
HCC Insurance Holdings, Inc.		1,380		38,502
Hilltop Holdings, Inc. *		805		9,628
Infinity Property & Casualty Corp.		115		4,686
Lincoln National Corp.		3,795		95,558
Loews Corp.		4,485		163,523
Markel Corp. *		115		40,566
Marsh & McLennan Cos., Inc.		6,670		154,877
Max Capital Group Ltd.		920		22,209
MBIA, Inc. *		2,760		13,303
Mercury General Corp.		460		18,888
MetLife, Inc.		7,360		267,830
Montpelier Re Holdings Ltd.		1,035		18,361
Old Republic International Corp.		2,875		32,459
OneBeacon Insurance Group Ltd., Class A		1,495		22,679
PartnerRe Ltd.		805		64,086
Platinum Underwriters Holdings Ltd.		575		21,499
PMA Capital Corp., Class A *		345		1,960

22 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Principal Financial Group, Inc.		3,910		90,751
ProAssurance Corp. *		460		24,527
Protective Life Corp.		1,035		19,003
Prudential Financial, Inc.		5,865		307,385
Reinsurance Group of America, Inc.		920		43,728
RenaissanceRe Holdings Ltd.		805		44,565
RLI Corp.		345		18,385
Safety Insurance Group, Inc.		230		8,542
Selective Insurance Group, Inc.		690		11,185
StanCorp Financial Group, Inc.		575		24,714
State Auto Financial Corp.		575		10,546
The Allstate Corp.		6,785		212,031
The Chubb Corp.		4,485		226,313
The Hartford Financial Services Group, Inc.		4,830		117,707
The Navigators Group, Inc. *		230		8,710
The Progressive Corp.		8,050		138,057
The Travelers Cos., Inc.		6,900		362,871
Torchmark Corp.		1,035		48,127
Tower Group, Inc.		460		10,474
Transatlantic Holdings, Inc.		690		34,293
Unitrin, Inc.		920		22,227
Unum Group		4,255		88,547
Validus Holdings Ltd.		1,150		32,189
W.R. Berkley Corp.		1,840		47,362
White Mountains Insurance Group Ltd.		115		39,864
XL Capital Ltd., Class A		4,370		79,840
Zenith National Insurance Corp.		575		21,902

				6,338,795

Materials 3.7%
Airgas, Inc.		805		51,633
AK Steel Holding Corp.		1,495		32,187
Albemarle Corp.		1,150		43,113
Alcoa, Inc.		12,880		171,304
Allegheny Technologies, Inc.		1,265		55,230
Allied Nevada Gold Corp. *		690		9,494
AMCOL International Corp.		690		17,554
AptarGroup, Inc.		805		31,017
Ashland, Inc.		920		43,314
Ball Corp.		1,150		62,146
Bemis Co., Inc.		1,380		40,393
Cabot Corp.		805		23,393
Calgon Carbon Corp. *		1,265		19,620
Carpenter Technology Corp.		920		27,480
Celanese Corp., Series A		1,840		57,390
Century Aluminum Co. *		690		8,411
CF Industries Holdings, Inc.		690		73,306
Cliffs Natural Resources, Inc.		1,725		97,290
Commercial Metals Co.		1,495		24,518
Compass Minerals International, Inc.		345		26,058
Crown Holdings, Inc. *		2,070		56,552
Cytec Industries, Inc.		575		24,535
Domtar Corp. *		460		24,044
E.I. du Pont de Nemours & Co.		10,695		360,635
Eagle Materials, Inc.		690		16,277
Eastman Chemical Co.		805		47,938
Ecolab, Inc.		2,990		125,999
FMC Corp.		920		52,596
Freeport-McMoRan Copper & Gold, Inc.		5,290		397,596
Graphic Packaging Holding Co. *		3,795		13,207
Greif, Inc., Class A		460		23,570
H.B. Fuller Co.		920		19,311
Hecla Mining Co. *		3,220		16,744
Huntsman Corp.		2,300		31,579
International Flavors & Fragrances, Inc.		920		38,741
International Paper Co.		5,175		119,905
Intrepid Potash, Inc. *		690		18,989
Kaiser Aluminum Corp.		460		15,359
Martin Marietta Materials, Inc.		575		45,551
MeadWestvaco Corp.		1,955		44,848
Minerals Technologies, Inc.		345		16,846
Monsanto Co.		6,900		487,485
Nalco Holding Co.		1,725		40,123
NewMarket Corp.		230		20,481
Newmont Mining Corp.		6,095		300,362
Nucor Corp.		3,680		152,352
Olin Corp.		1,150		20,136
OM Group, Inc. *		575		19,792
Owens-Illinois, Inc. *		2,185		64,763
Packaging Corp. of America		1,265		30,107
Pactiv Corp. *		1,610		39,864
PPG Industries, Inc.		2,185		134,465
Praxair, Inc.		3,910		293,797
Reliance Steel & Aluminum Co.		805		35,694
Rock-Tenn Co., Class A		460		19,246
Rockwood Holdings, Inc. *		920		22,071
Royal Gold, Inc.		460		20,672
RPM International, Inc.		1,725		33,206
Schnitzer Steel Industries, Inc., Class A		345		15,753
Sealed Air Corp.		1,955		39,941
Sensient Technologies Corp.		690		18,230
Sigma-Aldrich Corp.		1,380		65,812
Silgan Holdings, Inc.		345		19,703
Solutia, Inc. *		1,610		22,653
Sonoco Products Co.		1,265		37,419
Southern Copper Corp.		2,760		81,034
Steel Dynamics, Inc.		2,760		45,071
Stillwater Mining Co. *		1,035		11,747
Temple-Inland, Inc.		1,380		25,696
Terra Industries, Inc.		1,380		56,815
Texas Industries, Inc.		460		16,344
The Dow Chemical Co.		14,490		410,212
The Lubrizol Corp.		805		63,603
The Mosaic Co.		1,955		114,152
The Scotts Miracle-Gro Co., Class A		575		22,454
The Valspar Corp.		1,150		31,464
Titanium Metals Corp. *		1,265		14,914
United States Steel Corp.		1,840		97,410
Valhi, Inc.		1,035		18,061
Vulcan Materials Co.		1,380		59,906
W.R. Grace & Co. *		805		23,313
Walter Energy, Inc.		690		54,213
Westlake Chemical Corp.		690		13,973
Weyerhaeuser Co.		2,645		106,858
Worthington Industries, Inc.		1,610		25,502

				5,672,542

Media 2.9%
Arbitron, Inc.		115		2,473

See financial notes 23

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Belo Corp., Class A		1,035		6,966
Cablevision Systems Corp., Class A		2,990		71,999
CBS Corp., Class B		7,935		103,076
Cinemark Holdings, Inc.		920		14,821
Clear Channel Outdoor Holdings, Inc., Class A *		1,150		10,948
Comcast Corp., Class A		36,570		601,211
DIRECTV, Class A *		12,535		424,310
Discovery Communications, Inc., Series A *		3,565		111,050
DISH Network Corp., Class A		2,760		55,117
DreamWorks Animation SKG, Inc., Class A *		920		39,983
Gannett Co., Inc.		3,220		48,783
Interactive Data Corp.		690		20,914
John Wiley & Sons, Inc., Class A		575		24,138
Lamar Advertising Co., Class A *		805		24,214
Liberty Global, Inc., Series A *		3,220		86,554
Liberty Media - Starz, Series A *		633		32,239
Liberty Media Corp. - Capital, Series A *		1,035		35,024
Madison Square Garden, Inc., Class A *		743		14,489
Meredith Corp.		575		17,664
Morningstar, Inc. *		345		15,215
News Corp., Class A		29,785		398,225
Omnicom Group, Inc.		3,910		143,184
Regal Entertainment Group, Class A		1,610		24,053
Scripps Networks Interactive, Class A		1,035		40,965
Sirius XM Radio, Inc. *		49,795		50,791
The Interpublic Group of Cos., Inc. *		6,095		45,712
The McGraw-Hill Cos., Inc.		4,025		137,655
The New York Times Co., Class A *		2,070		22,646
The Walt Disney Co.		22,571		705,118
The Washington Post Co., Class B		115		48,336
Time Warner Cable, Inc.		4,600		214,774
Time Warner, Inc.		14,835		430,808
Valassis Communications, Inc. *		575		14,732
Viacom, Inc., Class B *		6,900		204,585
Virgin Media, Inc.		3,680		59,616
World Wrestling Entertainment, Inc., Class A		1,265		21,568

				4,323,956

Pharmaceuticals, Biotechnology & Life Sciences 7.9%
Abbott Laboratories		19,550		1,061,174
Abraxis BioScience, Inc. *		575		18,601
Acorda Therapeutics, Inc. *		805		24,295
Alexion Pharmaceuticals, Inc. *		1,150		56,948
Alkermes, Inc. *		2,185		25,040
Allergan, Inc.		4,025		235,181
Allos Therapeutics, Inc. *		2,990		23,262
Alnylam Pharmaceuticals, Inc. *		1,035		18,030
AMAG Pharmaceuticals, Inc. *		230		8,784
Amgen, Inc. *		12,765		722,627
Amylin Pharmaceuticals, Inc. *		1,840		34,776
Auxilium Pharmaceuticals, Inc. *		575		17,365
Bio-Rad Laboratories, Inc., Class A *		230		21,480
Biogen Idec, Inc. *		3,680		202,437
BioMarin Pharmaceutical, Inc. *		1,380		27,600
Bristol-Myers Squibb Co.		21,563		528,509
Bruker Corp. *		1,035		12,937
Celgene Corp. *		5,750		342,240
Cephalon, Inc. *		920		63,176
Cepheid, Inc. *		1,380		20,838
Charles River Laboratories International, Inc. *		805		30,526
Covance, Inc. *		805		45,579
Cubist Pharmaceuticals, Inc. *		1,035		21,776
Dendreon Corp. *		1,495		46,689
Dionex Corp. *		230		15,709
Eli Lilly & Co.		12,420		426,503
Endo Pharmaceuticals Holdings, Inc. *		1,265		28,779
Exelixis, Inc. *		1,610		10,417
Forest Laboratories, Inc. *		3,795		113,394
Genzyme Corp. *		3,335		190,762
Gilead Sciences, Inc. *		11,500		547,515
Halozyme Therapeutics, Inc. *		2,875		15,726
Human Genome Sciences, Inc. *		2,300		64,745
Illumina, Inc. *		1,840		66,829
Impax Laboratories, Inc. *		690		10,633
Incyte Corp. *		1,610		17,163
Johnson & Johnson		35,075		2,209,725
King Pharmaceuticals, Inc. *		3,105		34,931
Life Technologies Corp. *		2,300		116,748
Luminex Corp. *		1,265		18,532
MannKind Corp. *		1,035		10,340
Martek Biosciences Corp. *		920		18,244
Medicis Pharmaceutical Corp., Class A		805		18,112
Medivation, Inc. *		690		24,847
Merck & Co., Inc.		38,640		1,425,043
Mettler-Toledo International, Inc. *		460		45,728
Millipore Corp. *		690		65,143
Mylan, Inc. *		3,795		80,985
Myriad Genetics, Inc. *		1,150		26,450
Nektar Therapeutics *		2,300		28,497
Onyx Pharmaceuticals, Inc. *		805		22,347
OSI Pharmaceuticals, Inc. *		690		25,544
Par Pharmaceutical Cos., Inc. *		805		20,149
PAREXEL International Corp. *		1,495		30,124
PDL BioPharma, Inc.		2,300		16,100
PerkinElmer, Inc.		1,610		35,758
Perrigo Co.		1,035		51,305
Pfizer, Inc.		102,235		1,794,224
Pharmaceutical Product Development, Inc.		1,495		31,485
Regeneron Pharmaceuticals, Inc. *		1,035		25,316
Salix Pharmaceuticals Ltd. *		920		26,275
Savient Pharmaceuticals, Inc. *		1,495		20,153
Seattle Genetics, Inc. *		1,955		19,941
Talecris Biotherapeutics Holdings Corp. *		575		12,316
Targacept, Inc. *		460		8,722
Techne Corp.		460		29,403
Thermo Fisher Scientific, Inc. *		5,060		246,776
United Therapeutics Corp. *		575		33,011
Valeant Pharmaceuticals International *		805		29,962
Varian, Inc. *		345		17,830
Vertex Pharmaceuticals, Inc. *		2,415		98,073
ViroPharma, Inc. *		2,415		30,091
VIVUS, Inc. *		1,265		10,626

24 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Waters Corp. *		1,150		68,609
Watson Pharmaceuticals, Inc. *		1,265		50,334

				11,995,844

Real Estate 2.3%
Acadia Realty Trust		460		7,696
Alexandria Real Estate Equities, Inc.		575		35,431
AMB Property Corp.		1,955		47,585
American Campus Communities, Inc.		690		19,072
Annaly Capital Management, Inc.		7,015		128,936
Anworth Mortgage Asset Corp.		2,530		17,103
Apartment Investment & Management Co., Class A		1,610		26,871
AvalonBay Communities, Inc.		1,035		84,270
BioMed Realty Trust, Inc.		1,495		23,098
Boston Properties, Inc.		1,840		124,991
Brandywine Realty Trust		1,955		21,916
BRE Properties, Inc.		690		23,260
Brookfield Properties Corp.		3,335		46,256
Camden Property Trust		805		32,240
Capstead Mortgage Corp.		1,380		17,167
CB Richard Ellis Group, Inc., Class A *		2,990		39,468
CBL & Associates Properties, Inc.		2,185		25,980
Chimera Investment Corp.		8,165		32,660
Colonial Properties Trust		805		9,491
Colony Financial, Inc.		920		18,345
Corporate Office Properties Trust		690		25,413
DCT Industrial Trust, Inc.		3,910		19,237
Developers Diversified Realty Corp.		1,955		20,743
DiamondRock Hospitality Co. *		2,453		21,930
Digital Realty Trust, Inc.		920		47,454
Douglas Emmett, Inc.		1,610		22,685
Duke Realty Corp.		2,875		31,912
DuPont Fabros Technology, Inc.		460		9,016
EastGroup Properties, Inc.		460		16,514
Entertainment Properties Trust		575		21,976
Equity Lifestyle Properties, Inc.		345		17,160
Equity One, Inc.		1,150		21,241
Equity Residential		3,450		124,476
Essex Property Trust, Inc.		345		29,635
Extra Space Storage, Inc.		1,955		22,052
Federal Realty Investment Trust		805		55,513
Forest City Enterprises, Inc., Class A *		2,070		24,840
Forestar Group, Inc. *		460		8,160
Franklin Street Properties Corp.		1,035		13,424
Hatteras Financial Corp.		690		17,919
HCP, Inc.		3,680		105,910
Health Care REIT, Inc.		1,495		63,328
Healthcare Realty Trust, Inc.		920		19,219
Highwoods Properties, Inc.		920		26,726
Home Properties, Inc.		460		21,068
Hospitality Properties Trust		1,610		35,372
Host Hotels & Resorts, Inc. *		7,945		93,036
HRPT Properties Trust		2,875		20,183
Inland Real Estate Corp.		460		3,864
Jones Lang LaSalle, Inc.		460		29,297
Kilroy Realty Corp.		690		19,548
Kimco Realty Corp.		4,945		68,686
LaSalle Hotel Properties		1,035		20,089
Liberty Property Trust		1,380		42,683
Mack-Cali Realty Corp.		920		30,857
Medical Properties Trust, Inc.		920		9,467
MFA Financial, Inc.		3,450		24,978
Mid-America Apartment Communities, Inc.		460		23,892
National Health Investors, Inc.		575		20,016
National Retail Properties, Inc.		1,150		24,403
Nationwide Health Properties, Inc.		1,380		45,802
OMEGA Healthcare Investors, Inc.		1,150		21,816
Plum Creek Timber Co., Inc.		2,070		73,961
Post Properties, Inc.		575		11,063
Potlatch Corp.		575		18,987
ProLogis		5,980		77,082
PS Business Parks, Inc.		345		16,905
Public Storage		1,725		141,778
Rayonier, Inc.		1,035		43,025
Realty Income Corp.		1,265		35,420
Redwood Trust, Inc.		1,265		18,026
Regency Centers Corp.		1,150		39,870
Senior Housing Properties Trust		1,610		33,472
Simon Property Group, Inc.		3,566		279,182
SL Green Realty Corp.		920		46,975
Sovran Self Storage, Inc.		575		18,245
Starwood Property Trust, Inc.		920		17,213
Sunstone Hotel Investors, Inc. *		2,300		20,562
Tanger Factory Outlet Centers, Inc.		460		19,168
Taubman Centers, Inc.		690		26,724
The Macerich Co.		1,151		41,022
The St. Joe Co. *		1,265		34,787
UDR, Inc.		1,840		30,912
Ventas, Inc.		1,955		86,391
Vornado Realty Trust		2,300		151,156
Washington Real Estate Investment Trust		690		19,223
Weingarten Realty Investors		1,610		33,150

				3,457,675

Retailing 3.7%
99 Cents Only Stores *		1,495		24,668
Aaron’s, Inc.		690		20,472
Abercrombie & Fitch Co., Class A		1,035		37,695
Advance Auto Parts, Inc.		1,150		46,920
Aeropostale, Inc. *		805		28,465
Amazon.com, Inc. *		3,910		462,944
American Eagle Outfitters, Inc.		2,300		38,801
AnnTaylor Stores Corp. *		1,380		23,750
AutoNation, Inc. *		920		16,330
AutoZone, Inc. *		345		57,246
Barnes & Noble, Inc.		1,035		20,772
Bed Bath & Beyond, Inc. *		3,335		138,769
Best Buy Co., Inc.		4,255		155,307
Big Lots, Inc. *		1,035		34,672
Blue Nile, Inc. *		345		17,678
Cabela’s, Inc. *		1,380		21,335
CarMax, Inc. *		2,530		51,081
Chico’s FAS, Inc. *		2,300		31,165
Collective Brands, Inc. *		1,035		23,391
Dick’s Sporting Goods, Inc. *		1,035		25,182
Dillard’s, Inc., Class A		805		13,580
Dollar General Corp. *		460		10,989
Dollar Tree, Inc. *		1,150		64,101
DSW, Inc., Class A *		460		12,388

See financial notes 25

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Expedia, Inc. *		2,645		58,825
Family Dollar Stores, Inc.		1,610		53,114
Foot Locker, Inc.		2,070		26,848
GameStop Corp., Class A *		1,955		33,626
Genuine Parts Co.		1,955		78,904
Group 1 Automotive, Inc. *		575		15,968
Guess?, Inc.		690		28,145
hhgregg, Inc. *		460		9,600
HSN, Inc. *		690		14,945
J. Crew Group, Inc. *		690		29,035
J.C. Penney Co., Inc.		2,645		72,949
Jo-Ann Stores, Inc. *		345		13,058
Jos. A. Bank Clothiers, Inc. *		460		20,576
Kohl’s Corp. *		3,680		198,058
Liberty Media Corp. - Interactive, Series A *		7,705		97,006
Limited Brands, Inc.		3,450		76,279
LKQ Corp. *		1,840		35,236
Lowe’s Cos., Inc.		18,400		436,264
Lumber Liquidators Holdings, Inc. *		345		7,652
Macy’s, Inc.		5,405		103,506
Netflix, Inc. *		575		37,979
Nordstrom, Inc.		2,185		80,714
O’Reilly Automotive, Inc. *		1,725		67,792
Office Depot, Inc. *		3,565		25,739
OfficeMax, Inc. *		1,725		27,548
Penske Automotive Group, Inc. *		1,150		16,733
PetSmart, Inc.		1,610		43,824
Priceline.com, Inc. *		575		130,387
RadioShack Corp.		1,610		31,492
Rent-A-Center, Inc. *		1,035		23,018
Ross Stores, Inc.		1,610		78,745
Saks, Inc. *		1,955		13,646
Sally Beauty Holdings, Inc. *		2,645		21,663
Sears Holdings Corp. *		690		66,012
Signet Jewelers Ltd. *		1,035		29,818
Staples, Inc.		9,085		234,030
Target Corp.		8,625		444,360
The Buckle, Inc.		575		16,830
The Children’s Place Retail Stores, Inc. *		575		21,971
The Dress Barn, Inc. *		920		22,871
The Gap, Inc.		6,440		138,460
The Gymboree Corp. *		345		15,008
The Home Depot, Inc.		21,620		674,544
The Men’s Wearhouse, Inc.		690		14,738
The Sherwin-Williams Co.		1,265		80,176
The TJX Cos., Inc.		5,290		220,223
Tiffany & Co.		1,610		71,468
Tractor Supply Co. *		460		25,171
Ulta Salon, Cosmetics & Fragrance, Inc. *		690		12,648
Urban Outfitters, Inc. *		1,725		55,562
Williams-Sonoma, Inc.		1,265		27,147

				5,557,612

Semiconductors & Semiconductor Equipment 2.7%
Advanced Micro Devices, Inc. *		8,050		63,675
Altera Corp.		3,680		89,902
Amkor Technology, Inc. *		1,840		11,077
Analog Devices, Inc.		3,680		107,603
Applied Materials, Inc.		17,020		208,325
Atheros Communications *		805		28,891
Atmel Corp. *		5,175		23,339
Broadcom Corp., Class A		5,405		169,285
Cabot Microelectronics Corp. *		230		8,142
Cavium Networks, Inc. *		920		21,988
Cree, Inc. *		1,150		78,004
Cymer, Inc. *		460		14,407
Cypress Semiconductor Corp. *		2,185		25,870
Diodes, Inc. *		460		9,021
Fairchild Semiconductor International, Inc. *		2,415		24,923
FEI Co. *		690		14,683
FormFactor, Inc. *		1,035		17,026
Hittite Microwave Corp. *		460		19,200
Integrated Device Technology, Inc. *		3,105		16,984
Intel Corp.		70,610		1,449,623
International Rectifier Corp. *		920		18,612
Intersil Corp., Class A		1,495		22,186
KLA-Tencor Corp.		2,185		63,649
Lam Research Corp. *		1,610		54,595
Linear Technology Corp.		2,645		71,865
LSI Corp. *		8,165		44,009
Marvell Technology Group Ltd. *		6,325		122,199
Maxim Integrated Products, Inc.		3,910		72,413
MEMC Electronic Materials, Inc. *		2,760		33,424
Microchip Technology, Inc.		2,300		62,238
Micron Technology, Inc. *		10,810		97,939
Microsemi Corp. *		1,265		19,620
MKS Instruments, Inc. *		1,150		20,735
Monolithic Power Systems, Inc. *		345		7,007
National Semiconductor Corp.		2,875		41,630
Netlogic Microsystems, Inc. *		460		24,927
Novellus Systems, Inc. *		1,150		25,438
NVIDIA Corp. *		7,015		113,643
OmniVision Technologies, Inc. *		460		6,684
ON Semiconductor Corp. *		5,520		43,939
PMC-Sierra, Inc. *		2,760		22,908
Power Integrations, Inc.		575		20,677
Rambus, Inc. *		1,380		30,291
RF Micro Devices, Inc. *		4,485		18,882
Semtech Corp. *		1,150		18,251
Silicon Laboratories, Inc. *		575		26,128
Skyworks Solutions, Inc. *		2,070		31,609
Teradyne, Inc. *		2,300		22,977
Tessera Technologies, Inc. *		690		12,392
Texas Instruments, Inc.		16,100		392,518
TriQuint Semiconductor, Inc. *		3,450		24,806
Varian Semiconductor Equipment Associates, Inc. *		920		27,674
Veeco Instruments, Inc. *		805		27,451
Xilinx, Inc.		3,565		92,084

				4,137,368

Software & Services 7.4%
Activision Blizzard, Inc.		7,360		78,237
Acxiom Corp. *		1,150		19,389
Adobe Systems, Inc. *		6,670		231,115
Advent Software, Inc. *		460		18,547
Akamai Technologies, Inc. *		2,300		60,490
Alliance Data Systems Corp. *		690		38,254

26 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
ANSYS, Inc. *		1,035		45,395
AOL, Inc. *		1,323		32,784
ArcSight, Inc. *		690		18,492
Ariba, Inc. *		1,610		19,336
Autodesk, Inc. *		2,875		80,155
Automatic Data Processing, Inc.		6,325		263,183
Blackbaud, Inc.		805		18,740
Blackboard, Inc. *		460		17,977
BMC Software, Inc. *		2,300		84,732
Broadridge Financial Solutions, Inc.		1,725		36,294
CA, Inc.		5,290		119,025
CACI International, Inc., Class A *		345		17,098
Cadence Design Systems, Inc. *		3,335		19,010
Citrix Systems, Inc. *		2,300		98,923
Cognizant Technology Solutions Corp., Class A *		3,680		177,118
CommVault Systems, Inc. *		920		20,148
Computer Sciences Corp. *		1,955		101,249
Compuware Corp. *		2,990		22,395
Concur Technologies, Inc. *		575		22,621
Convergys Corp. *		1,610		19,867
CyberSource Corp. *		1,150		19,700
DealerTrack Holdings, Inc. *		460		6,541
Digital River, Inc. *		805		21,163
DST Systems, Inc. *		460		17,678
EarthLink, Inc.		2,185		18,223
eBay, Inc. *		13,915		320,323
Electronic Arts, Inc. *		4,140		68,641
Equinix, Inc. *		460		43,456
Euronet Worldwide, Inc. *		690		12,503
FactSet Research Systems, Inc.		575		38,065
Fair Isaac Corp.		805		18,483
Fidelity National Information Services, Inc.		4,140		93,316
Fiserv, Inc. *		2,070		99,836
Fortinet, Inc. *		460		7,903
Gartner, Inc. *		920		21,887
Genpact Ltd. *		1,495		22,560
Global Payments, Inc.		1,035		44,308
Google, Inc., Class A *		2,875		1,514,550
GSI Commerce, Inc. *		920		22,972
Hewitt Associates, Inc., Class A *		1,035		39,320
IAC/InterActiveCorp *		1,380		30,898
Informatica Corp. *		1,035		26,413
Intuit, Inc. *		3,795		122,806
j2 Global Communications, Inc. *		920		19,964
Jack Henry & Associates, Inc.		1,035		23,370
JDA Software Group, Inc. *		690		19,527
Lawson Software, Inc. *		2,760		16,615
Lender Processing Services, Inc.		1,150		43,907
ManTech International Corp., Class A *		345		17,036
MasterCard, Inc., Class A		1,265		283,828
MAXIMUS, Inc.		345		19,865
McAfee, Inc. *		1,955		77,594
Mentor Graphics Corp. *		1,035		8,611
MICROS Systems, Inc. *		1,035		31,091
Microsoft Corp.		100,395		2,877,321
MicroStrategy, Inc., Class A *		230		20,399
NetSuite, Inc. *		1,265		15,635
NeuStar, Inc., Class A *		920		21,326
Novell, Inc. *		4,485		21,035
Nuance Communications, Inc. *		2,760		39,716
Oracle Corp.		48,530		1,196,264
Parametric Technology Corp. *		1,380		24,026
Paychex, Inc.		4,140		123,952
Pegasystems, Inc.		575		20,700
Progress Software Corp. *		805		22,556
Quest Software, Inc. *		1,035		17,440
Rackspace Hosting, Inc. *		1,035		20,524
Red Hat, Inc. *		2,415		67,741
Rovi Corp. *		1,265		42,377
SAIC, Inc. *		2,530		49,841
Salesforce.com, Inc. *		1,265		85,957
Sapient Corp. *		2,300		20,746
SAVVIS, Inc. *		1,150		16,204
Solarwinds, Inc. *		575		10,816
Solera Holdings, Inc.		805		27,499
Sourcefire, Inc. *		345		8,059
SRA International, Inc., Class A *		920		17,535
SuccessFactors, Inc. *		1,265		22,909
Switch & Data Facilities Co. *		460		8,229
Sybase, Inc. *		1,035		45,944
Symantec Corp. *		10,465		173,196
Synopsys, Inc. *		1,725		37,778
Syntel, Inc.		460		15,594
Taleo Corp., Class A *		460		10,828
TeleTech Holdings, Inc. *		1,035		18,102
The Ultimate Software Group, Inc. *		345		10,667
TIBCO Software, Inc. *		2,300		21,091
TiVo, Inc. *		1,725		16,353
Total System Services, Inc.		2,530		36,027
Tyler Technologies, Inc. *		460		8,354
Unisys Corp. *		690		24,088
ValueClick, Inc. *		1,840		17,462
VeriFone Holdings, Inc. *		1,380		26,634
VeriSign, Inc. *		2,530		63,048
Visa, Inc., Class A		5,405		460,938
VMware, Inc., Class A *		460		22,775
WebMD Health Corp. *		575		24,771
Websense, Inc. *		1,035		22,211
Western Union Co.		8,855		139,732
Wright Express Corp. *		575		16,284
Yahoo!, Inc. *		16,790		257,055

				11,141,266

Technology Hardware & Equipment 8.2%
3Com Corp. *		4,715		35,975
3PAR, Inc. *		1,725		15,922
ADC Telecommunications, Inc. *		2,760		17,498
ADTRAN, Inc.		805		18,821
Agilent Technologies, Inc. *		4,370		137,480
Amphenol Corp., Class A		2,185		91,005
Anixter International, Inc. *		460		19,200
Apple, Inc. *		11,270		2,306,067
Arris Group, Inc. *		1,725		17,802
Arrow Electronics, Inc. *		1,610		45,418
Aruba Networks, Inc. *		1,265		14,838
Avnet, Inc. *		1,955		53,978
AVX Corp.		1,610		19,803
Benchmark Electronics, Inc. *		1,150		22,770
Blue Coat Systems, Inc. *		690		19,996
Brightpoint, Inc. *		2,415		17,219

See financial notes 27

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Brocade Communications Systems, Inc. *		5,175		30,118
Ciena Corp. *		460		6,596
Cisco Systems, Inc. *		73,140		1,779,496
Cogent, Inc. *		1,955		19,355
Cognex Corp.		1,035		19,562
CommScope, Inc. *		1,150		29,314
Comtech Telecommunications Corp. *		575		18,182
Corning, Inc.		19,895		350,749
Dell, Inc. *		22,310		295,161
Diebold, Inc.		805		23,313
Dolby Laboratories, Inc., Class A *		690		36,756
EchoStar Corp., Class A *		1,035		20,845
Electronics for Imaging, Inc. *		575		6,820
EMC Corp. *		25,530		446,520
Emulex Corp. *		1,725		21,908
F5 Networks, Inc. *		1,035		57,753
FLIR Systems, Inc. *		1,955		52,414
Harris Corp.		1,610		72,804
Hewlett-Packard Co.		30,130		1,530,303
Infinera Corp. *		2,300		17,434
Ingram Micro, Inc., Class A *		1,955		34,603
InterDigital, Inc. *		920		23,598
Intermec, Inc. *		1,380		19,651
International Business Machines Corp.		16,790		2,135,016
IPG Photonics Corp. *		575		9,097
Itron, Inc. *		460		30,797
Jabil Circuit, Inc.		2,530		38,380
JDS Uniphase Corp. *		3,105		33,317
Juniper Networks, Inc. *		6,785		189,844
Lexmark International, Inc., Class A *		920		31,013
Littelfuse, Inc. *		230		8,186
Loral Space & Communications, Inc. *		230		7,482
Molex, Inc.		1,840		37,628
Motorola, Inc. *		27,255		184,244
Multi-Fineline Electronix, Inc. *		690		15,042
National Instruments Corp.		805		25,454
NCR Corp. *		1,955		24,672
NetApp, Inc. *		4,255		127,693
NETGEAR, Inc. *		460		11,661
Palm, Inc. *		1,955		11,926
Plantronics, Inc.		690		19,617
Plexus Corp. *		690		23,798
Polycom, Inc. *		1,035		27,024
QLogic Corp. *		1,610		29,302
QUALCOMM, Inc.		20,815		763,702
Riverbed Technology, Inc. *		805		21,936
Rofin-Sinar Technologies, Inc. *		805		16,494
SanDisk Corp. *		2,875		83,749
Sanmina-SCI Corp. *		920		15,217
ScanSource, Inc. *		690		17,940
Seagate Technology *		6,325		125,931
STEC, Inc. *		805		8,275
Sycamore Networks, Inc.		609		11,729
Synaptics, Inc. *		805		21,494
SYNNEX Corp. *		690		19,762
Tech Data Corp. *		575		24,633
Tekelec *		1,150		18,998
Tellabs, Inc.		4,485		30,991
Teradata Corp. *		2,070		63,114
Trimble Navigation Ltd. *		1,495		40,171
ViaSat, Inc. *		575		17,480
Vishay Intertechnology, Inc. *		2,760		28,290
Western Digital Corp. *		2,875		111,061
Xerox Corp.		16,679		156,282
Zebra Technologies Corp., Class A *		690		19,713

				12,405,202

Telecommunication Services 2.7%
AboveNet, Inc. *		345		21,086
American Tower Corp., Class A *		5,060		215,860
AT&T, Inc.		75,325		1,868,813
Atlantic Tele-Network, Inc.		345		15,139
CenturyTel, Inc.		3,795		130,055
Clearwire Corp., Class A *		2,990		19,016
Crown Castle International Corp. *		3,105		117,369
Frontier Communications Corp.		3,795		29,563
Global Crossing Ltd. *		1,495		21,304
Leap Wireless International, Inc. *		1,380		19,693
Level 3 Communications, Inc. *		22,770		36,204
MetroPCS Communications, Inc. *		3,105		19,158
NII Holdings, Inc. *		2,185		81,763
Qwest Communications International, Inc.		16,790		76,562
SBA Communications Corp., Class A *		1,495		52,863
Sprint Nextel Corp. *		36,110		120,246
Syniverse Holdings, Inc. *		1,035		17,409
Telephone & Data Systems, Inc.		1,150		35,891
tw telecom, Inc. *		1,955		31,065
United States Cellular Corp. *		460		16,850
Verizon Communications, Inc.		36,340		1,051,316
Windstream Corp.		5,520		55,918

				4,053,143

Transportation 1.8%
Alaska Air Group, Inc. *		690		24,150
Alexander & Baldwin, Inc.		575		18,504
Allegiant Travel Co. *		230		11,992
AMERCO *		230		12,059
AMR Corp. *		4,370		40,160
Arkansas Best Corp.		345		9,053
Atlas Air Worldwide Holdings, Inc. *		230		10,368
Avis Budget Group, Inc. *		1,380		14,518
C.H. Robinson Worldwide, Inc.		2,070		110,393
Con-way, Inc.		575		18,682
Continental Airlines, Inc., Class B *		1,840		38,014
CSX Corp.		4,945		234,690
Delta Air Lines, Inc. *		10,120		130,751
Expeditors International of Washington, Inc.		2,645		96,463
FedEx Corp.		3,680		311,917
Genesee & Wyoming, Inc., Class A *		575		18,314
Heartland Express, Inc.		1,265		19,367
Hertz Global Holdings, Inc. *		2,530		23,782
Hub Group, Inc., Class A *		690		18,609
J.B. Hunt Transport Services, Inc.		1,150		40,802
JetBlue Airways Corp. *		3,565		18,823
Kansas City Southern *		1,150		39,445
Kirby Corp. *		690		22,777
Knight Transportation, Inc.		1,150		22,713
Landstar System, Inc.		690		27,524
Norfolk Southern Corp.		4,600		236,578

28 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Old Dominion Freight Line, Inc. *		690		21,211
Ryder System, Inc.		690		24,350
SkyWest, Inc.		1,265		18,671
Southwest Airlines Co.		9,430		118,629
UAL Corp. *		2,875		49,306
Union Pacific Corp.		6,325		426,115
United Parcel Service, Inc., Class B		8,855		520,143
UTI Worldwide, Inc.		1,380		20,603
Werner Enterprises, Inc.		920		20,525

				2,790,001

Utilities 3.6%
AGL Resources, Inc.		920		33,424
Allegheny Energy, Inc.		2,070		46,885
ALLETE, Inc.		575		18,084
Alliant Energy Corp.		1,380		43,649
Ameren Corp.		2,645		65,358
American Electric Power Co., Inc.		5,980		201,048
American Water Works Co., Inc.		1,150		25,599
Aqua America, Inc.		1,725		29,532
Atmos Energy Corp.		1,150		31,579
Avista Corp.		920		18,731
Black Hills Corp.		690		19,230
California Water Service Group		460		16,505
Calpine Corp. *		4,715		51,582
CenterPoint Energy, Inc.		4,600		61,548
Cleco Corp.		690		17,416
CMS Energy Corp.		2,760		42,145
Consolidated Edison, Inc.		3,565		152,404
Constellation Energy Group, Inc.		2,300		80,661
Dominion Resources, Inc.		7,475		283,975
DPL, Inc.		1,380		36,625
DTE Energy Co.		2,070		89,879
Duke Energy Corp.		16,215		265,115
Dynegy, Inc., Class A *		8,625		12,938
Edison International		3,680		120,078
El Paso Electric Co. *		920		18,510
Energen Corp.		920		41,823
Entergy Corp.		2,415		183,468
EQT Corp.		1,495		65,421
Exelon Corp.		8,395		363,503
FirstEnergy Corp.		3,795		146,677
FPL Group, Inc.		4,830		223,967
Great Plains Energy, Inc.		1,610		28,674
Hawaiian Electric Industries, Inc.		1,150		23,426
IDACORP, Inc.		690		22,791
Integrys Energy Group, Inc.		920		40,554
ITC Holdings Corp.		575		30,694
MDU Resources Group, Inc.		2,070		42,311
MGE Energy, Inc.		460		15,249
Mirant Corp. *		1,840		23,147
National Fuel Gas Co.		805		40,041
New Jersey Resources Corp.		575		20,942
Nicor, Inc.		575		23,949
NiSource, Inc.		3,450		51,819
Northeast Utilities		2,185		55,936
Northwest Natural Gas Co.		460		20,235
NorthWestern Corp.		805		20,165
NRG Energy, Inc. *		3,335		72,836
NSTAR		1,265		42,782
NV Energy, Inc.		2,875		31,941
OGE Energy Corp.		1,150		42,044
ONEOK, Inc.		1,265		56,077
Ormat Technologies, Inc.		460		13,308
Pepco Holdings, Inc.		2,760		46,423
PG&E Corp.		4,715		197,653
Piedmont Natural Gas Co., Inc.		805		20,793
Pinnacle West Capital Corp.		1,265		46,059
PNM Resources, Inc.		1,495		18,269
Portland General Electric Co.		920		16,551
PPL Corp.		4,600		131,008
Progress Energy, Inc.		3,450		132,100
Public Service Enterprise Group, Inc.		6,440		191,397
Questar Corp.		2,070		86,919
RRI Energy, Inc. *		4,600		19,550
SCANA Corp.		1,380		49,749
Sempra Energy		2,875		141,364
South Jersey Industries, Inc.		460		18,340
Southern Co.		10,120		321,512
Southwest Gas Corp.		690		19,720
TECO Energy, Inc.		2,415		37,022
The AES Corp. *		8,855		103,515
The Empire District Electric Co.		920		16,477
UGI Corp.		1,380		34,569
UIL Holdings Corp.		460		12,641
Unisource Energy Corp.		690		20,107
Vectren Corp.		1,035		24,064
Westar Energy, Inc.		1,380		29,532
WGL Holdings, Inc.		575		18,889
Wisconsin Energy Corp.		1,495		72,403
Xcel Energy, Inc.		5,635		117,264

				5,470,170

Total Common Stock (Cost $149,642,344)				150,838,846




Other Investment Company 0.1% of net assets


State Street Institutional Liquid Reserves Fund		60,408		60,408

Total Other Investment Company (Cost $60,408)				60,408




Rights 0.0% of net assets

Telecommunication Services 0.0%
Clearwire Corp. *		1,560		453

Total Rights (Cost $—)				453



End of Investments

At 02/28/10, the tax basis cost of the fund’s investments was $149,704,533 and the unrealized appreciation and depreciation were $4,535,843 and ($3,340,669), respectively, with a net unrealized appreciation of $1,195,174.


*		Non-income producing security.
(a)		Issuer is affiliated with the fund’s adviser.

See financial notes 29

Schwab U.S. Broad Market ETF

Statement of

Assets and Liabilities

As of February 28, 2010 (unaudited)




Assets
Investments, at value (cost $149,702,752)		$150,899,707
Cash		50,006
Receivables:
Investments sold		263,529
Dividends		291,227
Interest	+	24


Total assets		151,504,493


Liabilities
Payables:
Investments bought		266,470
Investment adviser and administrator fees	+	1,047


Total liabilities		267,517


Net Assets
Total assets		151,504,493
Total liabilities	—	267,517


Net assets		$151,236,976
Net Assets by Source
Capital received from investors		149,715,768
Net investment income not yet distributed		373,158
Net realized capital losses		(48,905	)
Net unrealized capital gains		1,196,955

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$151,236,976

5,750,001

$26.30

30 See financial notes

Schwab U.S. Broad Market ETF

Statement of

Operations

For October 30, 2009* through February 28, 2010 (unaudited)




Investment Income
Dividends (including $698 from affiliated issuer and net of foreign withholding tax of $141)		$575,047
Interest	+	73


Total investment income		575,120


Expenses
Investment adviser and administrator fees		21,962


Total expenses		21,962


Net investment income		553,158


Realized and Unrealized Gains (Losses)
Net realized losses on investments		(48,905	)
Net unrealized gains on investments	+	1,196,955


Net realized and unrealized gains		1,148,050


Net increase in net assets resulting from operations		$1,701,208


*	Commencement of operations.

See financial notes 31

Schwab U.S. Broad Market ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on October 30, 2009, it has no prior report period.

Figures for the current period are unaudited.




Operations


		*10/30/09-02/28/10**
Net investment income		$553,158
Net realized losses		(48,905)
Net unrealized gains	+	1,196,955


Net increase in net assets resulting from operations		$1,701,208


Distributions to Shareholders
Distributions from net investment income		$180,000




Transactions in Fund Shares


		*10/30/09-02/28/10**
		SHARES		VALUE
Shares Sold			5,750,001		$149,715,768
Shares Redeemed	+		—		—


Net transactions in fund shares			5,750,001		$149,715,768




Shares Outstanding and Net Assets


		*10/30/09-02/28/10**
		SHARES		NET ASSETS
Beginning of period			—		$—
Total increase	+		5,750,001		151,236,976


End of period			5,750,001		$151,236,976



Net investment income not yet distributed					$373,158


*	Commencement of operations.

32 See financial notes

Schwab U.S. Large-Cap ETF ^tm

Financial Statements

Financial Highlights


	10/30/09¹–
	2/28/10*


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.12
Net realized and unrealized gains (losses)		1.11

Total from investment operations		1.23
Less distributions:
Distributions from net investment income		(0.05	)

Net asset value at end of period		26.18

Total return (%)		4.92	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.08	³
Gross operating expenses		0.08	³
Net investment income (loss)		2.08	³
Portfolio turnover rate⁴		1	²
Net assets, end of period ($ x 1,000)		116,490

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Portfolio turnover rate excludes securities received or delivered from processing of in kind creations or redemptions.

See financial notes 33

Schwab U.S. Large-Cap ETF

Portfolio Holdings as of February 28, 2010 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	99	.7%	Common Stock		115,742,414		116,211,086
	0	.1%	Other Investment Company		86,101		86,101
		—%	Rights		—		160


	99	.8%	Total Investments		115,828,515		116,297,347
	0	.2%	Other Assets and Liabilities, Net				192,282


	100	.0%	Net Assets				116,489,629


	Number		Value
Security	of Shares		($)

Common Stock 99.7% of net assets

Automobiles & Components 0.7%
BorgWarner, Inc. *		1,250		46,825
Ford Motor Co. *		35,272		414,093
Harley-Davidson, Inc.		2,581		63,519
Johnson Controls, Inc.		7,393		229,922
The Goodyear Tire & Rubber Co. *		2,601		33,787

				788,146

Banks 2.9%
BB&T Corp.		7,434		212,092
BOK Financial Corp.		267		12,277
Capitol Federal Financial		267		9,244
City National Corp.		445		22,214
Comerica, Inc.		1,691		61,011
Commerce Bancshares, Inc.		721		29,208
Cullen/Frost Bankers, Inc.		623		33,735
Fifth Third Bancorp		8,722		106,496
First Horizon National Corp. *		2,418		30,950
Hudson City Bancorp, Inc.		5,209		70,426
KeyCorp		9,790		69,999
M&T Bank Corp.		801		62,021
New York Community Bancorp, Inc.		4,546		70,418
People’s United Financial, Inc.		3,659		57,702
PNC Financial Services Group, Inc.		5,696		306,217
Regions Financial Corp.		13,172		88,911
SunTrust Banks, Inc.		5,387		128,264
TFS Financial Corp.		1,026		13,184
U.S. Bancorp		21,004		516,908
Wells Fargo & Co.		53,696		1,468,049

				3,369,326

Capital Goods 7.6%
3M Co.		7,031		563,535
Aecom Technology Corp. *		1,114		30,189
AGCO Corp. *		979		33,531
Alliant Techsystems, Inc. *		356		28,284
AMETEK, Inc.		1,157		45,169
Caterpillar, Inc.		6,768		386,114
Cummins, Inc.		1,962		111,402
Danaher Corp.		2,670		197,500
Deere & Co.		4,628		265,184
Donaldson Co., Inc.		759		31,316
Dover Corp.		2,047		92,647
Eaton Corp.		1,780		121,254
Emerson Electric Co.		8,324		394,058
Fastenal Co.		1,471		65,268
First Solar, Inc. *		534		56,551
Flowserve Corp.		623		62,356
Fluor Corp.		1,962		83,974
General Dynamics Corp.		3,560		258,278
General Electric Co.		115,981		1,862,655
Goodrich Corp.		1,339		87,879
Harsco Corp.		890		26,718
Honeywell International, Inc.		7,608		305,537
Hubbell, Inc., Class B		623		29,188
Illinois Tool Works, Inc.		4,717		214,718
ITT Corp.		1,962		100,513
Jacobs Engineering Group, Inc. *		1,339		51,953
Joy Global, Inc.		1,157		58,776
KBR, Inc.		1,780		36,864
L-3 Communications Holdings, Inc.		1,246		113,909
Lincoln Electric Holdings, Inc.		445		21,226
Lockheed Martin Corp.		3,382		262,984
Masco Corp.		3,924		52,464
McDermott International, Inc. *		2,496		57,034
MSC Industrial Direct Co., Class A		445		20,279
Navistar International Corp. *		581		22,752
Northrop Grumman Corp.		3,204		196,277
Owens Corning, Inc. *		1,111		26,142
PACCAR, Inc.		3,738		132,138
Pall Corp.		1,246		49,180
Parker Hannifin Corp.		1,780		107,352
Pentair, Inc.		1,026		33,407
Precision Castparts Corp.		1,517		171,042
Quanta Services, Inc. *		2,183		41,477
Raytheon Co.		4,187		235,477
Rockwell Automation, Inc.		1,560		84,380
Rockwell Collins, Inc.		1,691		95,169
Roper Industries, Inc.		979		54,276
Spirit AeroSystems Holdings, Inc., Class A *		1,115		21,319
SPX Corp.		538		32,006
SunPower Corp., Class A *		1,068		20,025
Textron, Inc.		3,029		60,338
The Boeing Co.		7,189		454,057
The Shaw Group, Inc. *		983		34,110
The Stanley Works		890		50,952
United Technologies Corp.		9,531		654,303
URS Corp. *		890		41,385
W.W. Grainger, Inc.		712		72,375

				8,819,246

34 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Commercial & Professional Services 0.8%
Avery Dennison Corp.		1,246		39,374
Cintas Corp.		1,424		35,301
Copart, Inc. *		759		27,081
Corrections Corp. of America *		1,204		25,766
Covanta Holding Corp. *		1,513		25,494
Equifax, Inc.		1,382		44,583
FTI Consulting, Inc. *		534		19,619
IHS, Inc., Class A *		534		27,661
Iron Mountain, Inc. *		2,094		54,193
Manpower, Inc.		894		46,059
Pitney Bowes, Inc.		2,314		52,990
R.R. Donnelley & Sons Co.		2,272		45,190
Republic Services, Inc.		3,340		93,987
Robert Half International, Inc.		1,691		47,179
Stericycle, Inc. *		890		49,110
The Dun & Bradstreet Corp.		538		37,746
Towers Watson & Co., Class A		445		19,656
Verisk Analytics, Inc., Class A *		959		27,140
Waste Connections, Inc. *		890		29,922
Waste Management, Inc.		5,000		165,100

				913,151

Consumer Durables & Apparel 0.9%
Coach, Inc.		3,475		126,629
D.R. Horton, Inc.		3,026		37,401
Fortune Brands, Inc.		1,606		70,391
Garmin Ltd.		1,254		40,065
Hasbro, Inc.		1,335		47,766
Leggett & Platt, Inc.		1,606		30,434
Mattel, Inc.		3,916		86,113
Mohawk Industries, Inc. *		534		27,544
Newell Rubbermaid, Inc.		3,026		41,607
NIKE, Inc., Class B		2,937		198,541
NVR, Inc. *		89		63,039
Polo Ralph Lauren Corp.		534		42,683
Pulte Homes, Inc. *		3,649		39,519
The Black & Decker Corp.		623		45,149
Toll Brothers, Inc. *		1,428		26,889
VF Corp.		979		75,755
Whirlpool Corp.		801		67,412

				1,066,937

Consumer Services 1.9%
Apollo Group, Inc., Class A *		1,432		85,748
Burger King Holdings, Inc.		979		17,514
Career Education Corp. *		670		18,639
Carnival Corp. *		4,628		166,423
Chipotle Mexican Grill, Inc. *		267		27,958
Darden Restaurants, Inc.		1,513		61,352
DeVry, Inc.		712		44,963
Education Management Corp. *		178		3,544
H&R Block, Inc.		3,738		64,593
Hyatt Hotels Corp., Class A *		445		14,876
International Game Technology		3,293		57,792
ITT Educational Services, Inc. *		445		48,523
Las Vegas Sands Corp. *		4,725		78,577
Marriott International, Inc., Class A		3,388		91,849
McDonald’s Corp.		11,841		756,048
MGM MIRAGE *		2,759		29,080
Penn National Gaming, Inc. *		712		16,476
Royal Caribbean Cruises Ltd. *		1,428		40,369
Starbucks Corp. *		7,968		182,547
Starwood Hotels & Resorts Worldwide, Inc.		1,873		72,485
Strayer Education, Inc.		178		40,376
Weight Watchers International, Inc.		356		9,156
Wendy’s/Arby’s Group, Inc., Class A		4,005		19,544
Wyndham Worldwide Corp. *		1,916		44,049
Wynn Resorts Ltd.		801		50,920
Yum! Brands, Inc.		5,031		169,645

				2,213,046

Diversified Financials 7.5%
Affiliated Managers Group, Inc. *		445		31,653
American Express Co.		11,573		441,973
Ameriprise Financial, Inc.		2,763		110,603
Bank of America Corp.		108,792		1,812,475
Bank of New York Mellon Corp.		13,129		374,439
BlackRock, Inc.		488		106,774
Capital One Financial Corp.		4,903		185,088
CIT Group, Inc. *		2,227		81,130
Citigroup, Inc. *		226,127		768,832
CME Group, Inc.		716		216,010
Discover Financial Services		5,967		81,450
Eaton Vance Corp.		1,246		37,617
Federated Investors, Inc., Class B		1,115		27,886
Franklin Resources, Inc.		1,695		172,415
IntercontinentalExchange, Inc. *		801		85,939
Invesco Ltd.		4,675		91,630
Jefferies Group, Inc. *		1,204		30,052
JPMorgan Chase & Co.		43,118		1,809,662
Legg Mason, Inc.		1,780		46,013
Leucadia National Corp. *		2,136		50,709
Moody’s Corp.		2,094		55,742
Morgan Stanley		13,629		384,065
MSCI, Inc., Class A *		1,115		33,428
Northern Trust Corp.		2,670		142,284
NYSE Euronext		2,806		74,022
Raymond James Financial, Inc.		1,115		28,834
SEI Investments Co.		1,738		30,624
SLM Corp. *		5,209		58,237
State Street Corp.		5,387		241,930
T. Rowe Price Group, Inc.		2,763		140,056
TD Ameritrade Holding Corp. *		2,628		45,964
The Charles Schwab Corp. (a)		10,371		189,893
The Goldman Sachs Group, Inc.		4,721		738,128
The NASDAQ OMX Group, Inc. *		1,827		34,037

				8,759,594

Energy 11.0%
Alpha Natural Resources, Inc. *		1,695		77,987
Anadarko Petroleum Corp.		5,348		375,055
Apache Corp.		3,653		378,597
Arch Coal, Inc.		1,780		40,032
Baker Hughes, Inc.		3,386		162,257
BJ Services Co.		3,208		70,095
Cabot Oil & Gas Corp.		1,161		46,603
Cameron International Corp. *		2,688		110,558

See financial notes 35

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Chesapeake Energy Corp.		7,120		189,178
Chevron Corp.		22,030		1,592,769
Cimarex Energy Co.		893		53,366
CNX Gas Corp. *		267		6,993
Cobalt International Energy, Inc. *		730		9,008
Concho Resources, Inc. *		805		37,392
ConocoPhillips		14,333		687,984
CONSOL Energy, Inc.		1,962		98,806
Continental Resources, Inc. *		356		14,055
Denbury Resources, Inc. *		2,759		38,847
Devon Energy Corp.		4,628		318,684
Diamond Offshore Drilling, Inc.		670		58,504
El Paso Corp.		7,743		81,069
EOG Resources, Inc.		2,739		257,603
EXCO Resources, Inc.		1,873		35,418
Exxon Mobil Corp.		52,085		3,385,525
FMC Technologies, Inc. *		1,339		75,212
Forest Oil Corp. *		1,068		28,943
Halliburton Co.		9,794		295,289
Helmerich & Payne, Inc.		1,072		43,438
Hess Corp.		3,208		188,630
Marathon Oil Corp.		7,836		226,852
Murphy Oil Corp.		2,051		106,447
Nabors Industries Ltd. *		3,119		68,743
National-Oilwell Varco, Inc.		4,632		201,353
Newfield Exploration Co. *		1,428		72,928
Noble Energy, Inc.		1,873		136,055
Occidental Petroleum Corp.		8,900		710,665
Oceaneering International, Inc. *		534		32,280
Patterson-UTI Energy, Inc.		1,691		26,109
Peabody Energy Corp.		2,941		135,198
Petrohawk Energy Corp. *		3,301		70,641
Pioneer Natural Resources Co.		1,250		58,313
Plains Exploration & Production Co. *		1,471		48,264
Pride International, Inc. *		1,695		47,426
Quicksilver Resources, Inc. *		1,335		19,918
Range Resources Corp.		1,695		85,784
Rowan Cos., Inc. *		1,157		30,105
Schlumberger Ltd.		13,087		799,616
Smith International, Inc.		2,403		98,499
Southwestern Energy Co. *		3,746		159,392
Spectra Energy Corp.		6,989		152,360
Sunoco, Inc.		1,246		32,857
Tesoro Corp.		1,513		18,035
The Williams Cos., Inc.		6,323		136,197
Tidewater, Inc.		534		23,800
Ultra Petroleum Corp. *		1,691		77,329
Valero Energy Corp.		6,187		108,396
Whiting Petroleum Corp. *		534		39,970
XTO Energy, Inc.		6,388		291,932

				12,773,361

Food & Staples Retailing 2.6%
Costco Wholesale Corp.		4,717		287,595
CVS Caremark Corp.		15,493		522,889
Safeway, Inc.		4,450		110,894
SUPERVALU, Inc.		2,361		36,052
Sysco Corp.		6,455		186,549
The Kroger Co.		6,675		147,518
Wal-Mart Stores, Inc.		23,987		1,296,977
Walgreen Co.		10,858		382,636
Whole Foods Market, Inc. *		1,173		41,630

				3,012,740

Food, Beverage & Tobacco 5.5%
Altria Group, Inc.		22,653		455,778
Archer-Daniels-Midland Co.		6,408		188,139
Brown-Forman Corp., Class B		1,246		65,241
Bunge Ltd.		1,343		80,029
Campbell Soup Co.		2,318		77,259
Coca-Cola Enterprises, Inc.		3,475		88,786
ConAgra Foods, Inc.		4,942		120,881
Constellation Brands, Inc., Class A *		2,136		32,126
Dean Foods Co. *		2,004		29,238
Dr. Pepper Snapple Group, Inc.		2,539		80,613
Flowers Foods, Inc.		937		23,884
General Mills, Inc.		3,382		243,538
H.J. Heinz Co.		3,429		157,391
Hansen Natural Corp. *		801		33,322
Hormel Foods Corp.		801		32,929
Kellogg Co.		2,581		134,599
Kraft Foods, Inc., Class A		17,451		496,132
Lorillard, Inc.		1,780		130,011
McCormick & Co., Inc.		1,246		46,239
Molson Coors Brewing Co., Class B		1,691		68,283
PepsiAmericas, Inc.		670		20,087
PepsiCo, Inc.		17,224		1,075,983
Philip Morris International, Inc.		20,927		1,025,005
Ralcorp Holdings, Inc. *		623		41,623
Reynolds American, Inc.		1,869		98,683
Sara Lee Corp.		7,256		98,391
Smithfield Foods, Inc. *		1,737		29,894
The Coca-Cola Co.		23,364		1,231,750
The Hershey Co.		1,738		69,103
The J.M. Smucker Co.		1,250		74,600
The Pepsi Bottling Group, Inc.		1,513		57,842
Tyson Foods, Inc., Class A		3,208		54,664

				6,462,043

Health Care Equipment & Services 4.4%
Aetna, Inc.		4,806		144,132
AmerisourceBergen Corp.		3,251		91,158
Baxter International, Inc.		6,679		380,235
Beckman Coulter, Inc.		759		49,760
Becton, Dickinson & Co.		2,492		194,052
Boston Scientific Corp. *		16,534		127,973
C.R. Bard, Inc.		1,068		89,477
Cardinal Health, Inc.		3,916		133,027
CareFusion Corp. *		2,005		50,606
Cerner Corp. *		712		59,060
CIGNA Corp.		2,937		100,622
Community Health Systems, Inc. *		983		33,687
Coventry Health Care, Inc. *		1,606		37,227
DaVita, Inc. *		1,157		71,283
DENTSPLY International, Inc.		1,602		53,010
Edwards Lifesciences Corp. *		623		57,210
Express Scripts, Inc. *		2,763		265,276
Gen-Probe, Inc. *		534		24,073
Henry Schein, Inc. *		979		55,637
Hologic, Inc. *		2,806		48,403

36 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Hospira, Inc. *		1,780		93,147
Humana, Inc. *		1,869		88,460
IDEXX Laboratories, Inc. *		623		32,901
Intuitive Surgical, Inc. *		445		154,477
Inverness Medical Innovations, Inc. *		937		36,562
Kinetic Concepts, Inc. *		670		28,086
Laboratory Corp. of America Holdings *		1,115		81,741
Lincare Holdings, Inc. *		712		28,594
McKesson Corp.		3,006		177,805
Medco Health Solutions, Inc. *		5,162		326,445
Medtronic, Inc.		12,151		527,353
Omnicare, Inc.		1,293		35,002
Patterson Cos., Inc. *		1,068		31,698
Quest Diagnostics, Inc.		1,691		95,964
ResMed, Inc. *		801		45,721
St. Jude Medical, Inc. *		3,653		139,618
Stryker Corp.		3,301		175,283
Teleflex, Inc.		445		27,118
UnitedHealth Group, Inc.		12,774		432,528
Universal Health Services, Inc., Class B		983		30,493
Varian Medical Systems, Inc. *		1,335		65,375
WellPoint, Inc. *		4,992		308,855
Zimmer Holdings, Inc. *		2,318		132,891

				5,162,025

Household & Personal Products 2.8%
Alberto-Culver Co.		1,025		28,413
Avon Products, Inc.		4,697		142,977
Church & Dwight Co., Inc.		801		53,811
Colgate-Palmolive Co.		5,433		450,613
Energizer Holdings, Inc. *		801		46,418
Kimberly-Clark Corp.		4,539		275,699
Mead Johnson Nutrition Co.		2,225		105,242
The Clorox Co.		1,513		92,762
The Estee Lauder Cos., Inc., Class A		1,289		77,508
The Procter & Gamble Co.		32,083		2,030,212

				3,303,655

Insurance 4.3%
Aflac, Inc.		5,077		251,058
Alleghany Corp. *		89		24,675
Allied World Assurance Co. Holdings Ltd.		403		18,578
American Financial Group, Inc.		848		21,938
American International Group, Inc. *		1,335		33,068
Aon Corp.		2,717		111,234
Arch Capital Group Ltd. *		623		46,090
Assurant, Inc.		1,293		39,462
Axis Capital Holdings Ltd.		1,560		49,062
Berkshire Hathaway, Inc., Class B *		20,923		1,676,560
Brown & Brown, Inc.		1,293		21,697
Cincinnati Financial Corp.		1,649		44,358
CNA Financial Corp. *		287		7,057
Everest Re Group Ltd.		670		57,232
Fidelity National Financial, Inc., Class A		2,539		36,181
First American Corp.		1,293		41,673
Genworth Financial, Inc., Class A *		5,263		83,892
Hanover Insurance Group, Inc.		534		22,508
HCC Insurance Holdings, Inc.		1,258		35,098
Lincoln National Corp.		3,323		83,673
Loews Corp.		3,874		141,246
Markel Corp. *		93		32,806
Marsh & McLennan Cos., Inc.		5,696		132,261
MetLife, Inc.		6,319		229,949
Old Republic International Corp.		2,539		28,665
PartnerRe Ltd.		623		49,597
Principal Financial Group, Inc.		3,297		76,523
Prudential Financial, Inc.		5,077		266,086
Reinsurance Group of America, Inc.		759		36,075
RenaissanceRe Holdings Ltd.		712		39,416
The Allstate Corp.		5,886		183,938
The Chubb Corp.		3,742		188,821
The Hartford Financial Services Group, Inc.		4,187		102,037
The Progressive Corp. *		6,989		119,861
The Travelers Cos., Inc.		5,975		314,225
Torchmark Corp.		890		41,385
Transatlantic Holdings, Inc.		670		33,299
Unum Group		3,607		75,062
W.R. Berkley Corp.		1,513		38,945
Wesco Financial Corp.		100		37,555
White Mountains Insurance Group Ltd.		89		30,851
XL Capital Ltd., Class A		3,785		69,152

				4,972,849

Materials 3.6%
Air Products & Chemicals, Inc.		2,140		146,761
Airgas, Inc.		801		51,376
Albemarle Corp.		979		36,703
Alcoa, Inc.		10,700		142,310
Allegheny Technologies, Inc.		983		42,918
AptarGroup, Inc.		712		27,433
Ball Corp.		1,068		57,715
Bemis Co., Inc.		1,157		33,865
Celanese Corp., Series A		1,602		49,966
CF Industries Holdings, Inc.		623		66,188
Cliffs Natural Resources, Inc.		1,428		80,539
Crown Holdings, Inc. *		1,738		47,482
E.I. du Pont de Nemours & Co.		9,256		312,112
Eastman Chemical Co.		712		42,400
Ecolab, Inc.		2,581		108,763
FMC Corp.		801		45,793
Freeport-McMoRan Copper & Gold, Inc.		4,543		341,452
International Flavors & Fragrances, Inc.		890		37,478
International Paper Co.		4,361		101,044
Intrepid Potash, Inc. *		514		14,145
Martin Marietta Materials, Inc.		449		35,570
MeadWestvaco Corp.		1,606		36,842
Monsanto Co.		5,921		418,319
Newmont Mining Corp.		5,251		258,769
Nucor Corp.		3,115		128,961
Owens-Illinois, Inc. *		1,869		55,397
Pactiv Corp. *		1,471		36,422
PPG Industries, Inc.		1,784		109,787
Praxair, Inc.		3,382		254,124
Reliance Steel & Aluminum Co.		712		31,570

See financial notes 37

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Sealed Air Corp.		1,691		34,547
Sigma-Aldrich Corp.		1,157		55,177
Sonoco Products Co.		1,068		31,592
Southern Copper Corp.		2,314		67,939
Steel Dynamics, Inc.		2,314		37,788
Terra Industries, Inc.		1,072		44,134
The Dow Chemical Co.		12,549		355,262
The Lubrizol Corp.		712		56,255
The Mosaic Co.		1,606		93,774
The Scotts Miracle-Gro Co., Class A		449		17,534
The Valspar Corp.		979		26,785
United States Steel Corp.		1,602		84,810
Vulcan Materials Co.		1,250		54,263
Walter Energy, Inc.		603		47,378
Weyerhaeuser Co.		2,314		93,486

				4,252,928

Media 2.9%
Cablevision Systems Corp., Class A		2,581		62,151
CBS Corp., Class B		6,679		86,760
Clear Channel Outdoor Holdings, Inc., Class A *		403		3,837
Comcast Corp., Class A		31,552		518,715
DIRECTV, Class A *		10,776		364,768
Discovery Communications, Inc., Series A *		3,026		94,260
DISH Network Corp., Class A		2,314		46,211
DreamWorks Animation SKG, Inc., Class A *		670		29,118
Interactive Data Corp.		356		10,790
John Wiley & Sons, Inc., Class A		534		22,417
Liberty Global, Inc., Series A *		2,759		74,162
Liberty Media - Starz, Series A *		538		27,400
Madison Square Garden, Inc., Class A *		642		12,519
News Corp., Class A		25,369		339,184
Omnicom Group, Inc.		3,382		123,849
Scripps Networks Interactive, Class A		890		35,226
The Interpublic Group of Cos., Inc. *		5,294		39,705
The McGraw-Hill Cos., Inc.		3,471		118,708
The Walt Disney Co.		19,426		606,868
The Washington Post Co., Class B		89		37,408
Time Warner Cable, Inc.		3,831		178,869
Time Warner, Inc.		12,823		372,380
Viacom, Inc., Class B *		5,874		174,164
Virgin Media, Inc.		3,162		51,224

				3,430,693

Pharmaceuticals, Biotechnology & Life Sciences 8.3%
Abbott Laboratories		16,910		917,875
Alexion Pharmaceuticals, Inc. *		983		48,678
Allergan, Inc.		3,386		197,844
Amgen, Inc. *		11,125		629,786
Amylin Pharmaceuticals, Inc. *		1,428		26,989
Biogen Idec, Inc. *		3,115		171,356
Bristol-Myers Squibb Co.		18,559		454,881
Celgene Corp. *		5,031		299,445
Cephalon, Inc. *		801		55,005
Charles River Laboratories International, Inc. *		712		26,999
Covance, Inc. *		712		40,313
Dendreon Corp. *		1,428		44,596
Eli Lilly & Co.		10,769		369,808
Endo Pharmaceuticals Holdings, Inc. *		1,115		25,366
Forest Laboratories, Inc. *		3,293		98,395
Genzyme Corp. *		2,941		168,225
Gilead Sciences, Inc. *		9,968		474,577
Illumina, Inc. *		1,351		49,068
Johnson & Johnson		30,306		1,909,278
King Pharmaceuticals, Inc. *		2,670		30,038
Life Technologies Corp. *		1,958		99,388
Merck & Co., Inc.		33,418		1,232,456
Mettler-Toledo International, Inc. *		356		35,390
Millipore Corp. *		623		58,817
Mylan, Inc. *		3,293		70,273
Myriad Genetics, Inc. *		1,026		23,598
OSI Pharmaceuticals, Inc. *		623		23,063
PerkinElmer, Inc.		1,250		27,763
Perrigo Co.		890		44,117
Pfizer, Inc.		88,321		1,550,034
Pharmaceutical Product Development, Inc.		1,246		26,241
Talecris Biotherapeutics Holdings Corp. *		534		11,438
Techne Corp.		445		28,444
Thermo Fisher Scientific, Inc. *		4,454		217,222
Vertex Pharmaceuticals, Inc. *		2,090		84,875
Waters Corp. *		1,068		63,717
Watson Pharmaceuticals, Inc. *		1,157		46,037

				9,681,395

Real Estate 1.5%
AMB Property Corp.		1,602		38,993
Annaly Capital Management, Inc.		6,006		110,390
AvalonBay Communities, Inc.		890		72,464
Boston Properties, Inc.		1,517		103,050
Brookfield Properties Corp.		2,806		38,919
CB Richard Ellis Group, Inc., Class A *		2,709		35,759
Digital Realty Trust, Inc.		801		41,316
Equity Residential		3,026		109,178
Federal Realty Investment Trust		627		43,238
HCP, Inc.		3,204		92,211
Health Care REIT, Inc.		1,335		56,551
Host Hotels & Resorts, Inc.		6,895		80,740
Kimco Realty Corp.		4,404		61,172
Liberty Property Trust		1,246		38,539
Nationwide Health Properties, Inc.		1,204		39,961
Piedmont Office Realty Trust, Inc., Class A *		623		10,435
Plum Creek Timber Co., Inc.		1,780		63,599
ProLogis		5,208		67,131
Public Storage		1,428		117,367
Rayonier, Inc.		894		37,164
Realty Income Corp.		1,115		31,220
Regency Centers Corp.		979		33,942
Simon Property Group, Inc.		3,121		244,343
The St. Joe Co. *		983		27,032
Ventas, Inc.		1,691		74,725
Vornado Realty Trust		1,962		128,943

				1,798,382

38 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Retailing 3.5%
Abercrombie & Fitch Co., Class A		979		35,655
Advance Auto Parts, Inc.		1,026		41,861
Amazon.com, Inc. *		3,382		400,429
American Eagle Outfitters, Inc.		1,958		33,031
AutoNation, Inc. *		801		14,218
AutoZone, Inc. *		356		59,071
Bed Bath & Beyond, Inc. *		2,848		118,505
Best Buy Co., Inc.		3,738		136,437
CarMax, Inc. *		2,136		43,126
Dollar General Corp. *		364		8,696
Dollar Tree, Inc. *		979		54,569
Expedia, Inc. *		2,314		51,463
Family Dollar Stores, Inc.		1,424		46,978
GameStop Corp., Class A *		1,738		29,894
Genuine Parts Co.		1,738		70,146
Guess?, Inc.		623		25,412
J.C. Penney Co., Inc.		2,314		63,820
Kohl’s Corp. *		3,115		167,649
Liberty Media Corp. - Interactive, Series A *		6,497		81,797
Limited Brands, Inc.		3,030		66,993
Lowe’s Cos., Inc.		16,063		380,854
Macy’s, Inc.		4,628		88,626
Netflix, Inc. *		534		35,271
Nordstrom, Inc.		1,869		69,041
O’Reilly Automotive, Inc. *		1,513		59,461
PetSmart, Inc.		1,382		37,618
Priceline.com, Inc. *		445		100,908
Ross Stores, Inc.		1,335		65,295
Sears Holdings Corp. *		623		59,602
Staples, Inc.		7,964		205,153
Target Corp.		7,476		385,164
The Gap, Inc.		5,518		118,637
The Home Depot, Inc.		18,648		581,818
The Sherwin-Williams Co.		1,068		67,690
The TJX Cos., Inc.		4,674		194,579
Tiffany & Co.		1,339		59,438
Urban Outfitters, Inc. *		1,516		48,830

				4,107,735

Semiconductors & Semiconductor Equipment 2.6%
Advanced Micro Devices, Inc. *		6,687		52,894
Altera Corp.		3,204		78,274
Analog Devices, Inc.		3,204		93,685
Applied Materials, Inc.		14,727		180,258
Broadcom Corp., Class A *		4,655		145,795
Cree, Inc. *		1,026		69,594
Intel Corp.		60,976		1,251,837
KLA-Tencor Corp.		1,869		54,444
Lam Research Corp. *		1,424		48,288
Linear Technology Corp.		2,225		60,453
LSI Corp. *		6,989		37,671
Marvell Technology Group Ltd. *		5,344		103,246
Maxim Integrated Products, Inc.		3,382		62,635
MEMC Electronic Materials, Inc. *		2,446		29,621
Microchip Technology, Inc.		1,958		52,983
Micron Technology, Inc. *		9,214		83,479
National Semiconductor Corp.		2,539		36,765
NVIDIA Corp. *		5,967		96,665
ON Semiconductor Corp. *		4,717		37,547
Texas Instruments, Inc.		13,953		340,174
Varian Semiconductor Equipment Associates, Inc. *		801		24,094
Xilinx, Inc.		3,026		78,162

				3,018,564

Software & Services 7.5%
Activision Blizzard, Inc. *		6,230		66,225
Adobe Systems, Inc. *		5,765		199,757
Akamai Technologies, Inc. *		1,916		50,391
Alliance Data Systems Corp. *		538		29,827
ANSYS, Inc. *		979		42,939
AOL, Inc. *		1,167		28,918
Autodesk, Inc. *		2,450		68,306
Automatic Data Processing, Inc.		5,518		229,604
BMC Software, Inc. *		2,005		73,864
Broadridge Financial Solutions, Inc.		1,560		32,822
CA, Inc.		4,586		103,185
Citrix Systems, Inc. *		1,962		84,386
Cognizant Technology Solutions Corp., Class A *		3,204		154,209
Computer Sciences Corp. *		1,691		87,577
DST Systems, Inc. *		445		17,101
eBay, Inc. *		12,015		276,585
Electronic Arts, Inc. *		3,518		58,328
Equinix, Inc. *		445		42,039
FactSet Research Systems, Inc.		445		29,459
Fidelity National Information Services, Inc.		3,599		81,121
Fiserv, Inc. *		1,695		81,750
Genpact Ltd. *		623		9,401
Global Payments, Inc.		890		38,101
Google, Inc., Class A *		2,496		1,314,893
Hewitt Associates, Inc., Class A *		937		35,597
IAC/InterActiveCorp *		1,072		24,002
Intuit, Inc. *		3,293		106,562
Lender Processing Services, Inc.		1,072		40,929
ManTech International Corp., Class A *		267		13,184
MasterCard, Inc., Class A		1,068		239,627
McAfee, Inc. *		1,691		67,116
Microsoft Corp.		86,894		2,490,382
Nuance Communications, Inc. *		2,472		35,572
Oracle Corp.		42,046		1,036,434
Paychex, Inc.		3,518		105,329
Red Hat, Inc. *		2,047		57,418
Rovi Corp. *		1,107		37,085
SAIC, Inc. *		2,051		40,405
Salesforce.com, Inc. *		1,157		78,618
Sybase, Inc. *		890		39,507
Symantec Corp. *		8,989		148,768
Synopsys, Inc. *		1,648		36,091
Total System Services, Inc.		2,140		30,474
VeriSign, Inc. *		2,136		53,229
Visa, Inc., Class A		4,717		402,266
VMware, Inc., Class A *		445		22,032
Western Union Co.		7,565		119,376
Yahoo!, Inc. *		14,333		219,438

				8,680,229

See financial notes 39

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Technology Hardware & Equipment 8.5%
Agilent Technologies, Inc. *		3,807		119,768
Amphenol Corp., Class A		1,873		78,010
Apple, Inc. *		9,701		1,985,019
Arrow Electronics, Inc. *		1,335		37,660
Avnet, Inc. *		1,691		46,689
Brocade Communications Systems, Inc. *		4,578		26,644
Cisco Systems, Inc. *		63,317		1,540,503
Corning, Inc.		17,127		301,949
Dell, Inc. *		18,972		251,000
Dolby Laboratories, Inc., Class A *		534		28,446
EMC Corp. *		22,118		386,844
F5 Networks, Inc. *		890		49,662
FLIR Systems, Inc. *		1,606		43,057
Harris Corp.		1,493		67,513
Hewlett-Packard Co.		26,035		1,322,318
Ingram Micro, Inc., Class A *		1,780		31,506
International Business Machines Corp.		14,465		1,839,369
Itron, Inc. *		445		29,793
Juniper Networks, Inc. *		5,785		161,864
Molex, Inc.		1,432		29,284
Motorola, Inc. *		23,653		159,894
NCR Corp. *		1,738		21,934
NetApp, Inc. *		3,649		109,506
QUALCOMM, Inc.		17,936		658,072
SanDisk Corp. *		2,492		72,592
Seagate Technology *		5,518		109,863
Tellabs, Inc.		3,984		27,529
Teradata Corp. *		1,916		58,419
Trimble Navigation Ltd. *		1,293		34,743
Western Digital Corp. *		2,450		94,644
Xerox Corp.		14,297		133,963

				9,858,057

Telecommunication Services 2.9%
American Tower Corp., Class A *		4,361		186,040
AT&T, Inc.		65,186		1,617,265
CenturyTel, Inc.		3,208		109,938
Clearwire Corp., Class A *		933		5,934
Crown Castle International Corp. *		2,670		100,926
Frontier Communications Corp.		3,518		27,405
Level 3 Communications, Inc. *		17,744		28,213
MetroPCS Communications, Inc. *		2,713		16,739
NII Holdings, Inc. *		1,784		66,757
Qwest Communications International, Inc.		15,436		70,388
SBA Communications Corp., Class A *		1,246		44,059
Sprint Nextel Corp. *		31,715		105,611
Telephone & Data Systems, Inc.		1,026		32,021
United States Cellular Corp. *		136		4,982
Verizon Communications, Inc.		31,374		907,650
Windstream Corp.		4,853		49,161

				3,373,089

Transportation 1.7%
C.H. Robinson Worldwide, Inc.		1,869		99,674
CSX Corp.		4,272		202,749
Delta Air Lines, Inc. *		8,467		109,394
Expeditors International of Washington, Inc.		2,318		84,537
FedEx Corp.		3,204		271,571
Hertz Global Holdings, Inc. *		2,047		19,242
J.B. Hunt Transport Services, Inc.		1,026		36,402
Kansas City Southern *		1,026		35,192
Norfolk Southern Corp.		4,005		205,977
Ryder System, Inc.		623		21,986
Southwest Airlines Co.		8,145		102,464
Union Pacific Corp.		5,518		371,748
United Parcel Service, Inc., Class B		7,654		449,596

				2,010,532

Utilities 3.8%
AGL Resources, Inc.		801		29,100
Allegheny Energy, Inc.		1,827		41,382
Alliant Energy Corp.		1,204		38,082
Ameren Corp.		2,407		59,477
American Electric Power Co., Inc.		5,209		175,127
American Water Works Co., Inc.		979		21,793
Aqua America, Inc.		1,471		25,183
Atmos Energy Corp.		979		26,883
Calpine Corp. *		3,835		41,955
CenterPoint Energy, Inc.		4,028		53,895
CMS Energy Corp.		2,450		37,411
Consolidated Edison, Inc.		3,118		133,294
Constellation Energy Group, Inc.		2,047		71,788
Dominion Resources, Inc.		6,544		248,607
DPL, Inc.		1,293		34,316
DTE Energy Co.		1,827		79,328
Duke Energy Corp.		14,131		231,042
Dynegy, Inc., Class A *		5,518		8,277
Edison International		3,339		108,952
Energen Corp.		801		36,413
Entergy Corp.		2,051		155,814
EQT Corp.		1,339		58,595
Exelon Corp.		7,209		312,150
FirstEnergy Corp.		3,340		129,091
FPL Group, Inc.		4,141		192,018
Integrys Energy Group, Inc.		801		35,308
ITC Holdings Corp.		534		28,505
MDU Resources Group, Inc.		1,916		39,163
Mirant Corp. *		1,602		20,153
National Fuel Gas Co.		712		35,415
NiSource, Inc.		2,984		44,820
Northeast Utilities		1,916		49,050
NRG Energy, Inc. *		2,852		62,288
NSTAR		1,157		39,130
NV Energy, Inc.		2,535		28,164
OGE Energy Corp.		1,080		39,485
ONEOK, Inc.		1,068		47,344
Pepco Holdings, Inc.		2,450		41,209
PG&E Corp.		4,094		171,620
Piedmont Natural Gas Co., Inc.		712		18,391
Pinnacle West Capital Corp.		1,068		38,886
PPL Corp.		4,052		115,401
Progress Energy, Inc.		3,026		115,866
Public Service Enterprise Group, Inc.		5,565		165,392
Questar Corp.		1,869		78,479
RRI Energy, Inc. *		3,916		16,643
SCANA Corp.		1,204		43,404

40 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Sempra Energy		2,492		122,532
Southern Co.		8,722		277,098
TECO Energy, Inc.		2,183		33,465
The AES Corp. *		7,310		85,454
UGI Corp.		1,246		31,212
Vectren Corp.		890		20,692
Westar Energy, Inc.		1,157		24,760
Wisconsin Energy Corp.		1,246		60,344
Xcel Energy, Inc.		4,984		103,717

				4,383,363

Total Common Stock (Cost $115,742,414)				116,211,086




Other Investment Company 0.1% of net assets


State Street Institutional Liquid Reserves Fund		86,101		86,101

Total Other Investment Company (Cost $86,101)				86,101




Rights 0.0% of net assets

Telecommunication Services 0.0%
Clearwire Corp. *		553		160

Total Rights (Cost $—)				160



End of Investments.

At 02/28/10, the tax basis cost of the fund’s investments was $115,834,396 and the unrealized appreciation and depreciation were $2,933,978 and ($2,471,027), respectively, with a net unrealized appreciation of $462,951.


*		Non-income producing security.
(a)		Issuer is affiliated with the fund’s adviser.

See financial notes 41

Schwab U.S. Large-Cap ETF

Statement of

Assets and Liabilities

As of February 28, 2010 (unaudited)




Assets
Investments, at value (cost $115,828,515)		$116,297,347
Cash		43,780
Receivables:
Investments sold		146,809
Fund shares sold		1,306,839
Dividends		224,914
Interest	+	17


Total assets		118,019,706


Liabilities
Payables:
Investments bought		1,529,249
Investment adviser and administrator fees	+	828


Total liabilities		1,530,077


Net Assets
Total assets		118,019,706
Total liabilities	—	1,530,077


Net assets		$116,489,629
Net Assets by Source
Capital received from investors		115,737,771
Net investment income not yet distributed		299,011
Net realized capital losses		(15,985	)
Net unrealized capital gains		468,832

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$116,489,629

4,450,001

$26.18

42 See financial notes

Schwab U.S. Large-Cap ETF

Statement of

Operations

For October 30, 2009* through February 28, 2010 (unaudited)




Investment Income
Dividends (including $545 from affiliated issuer and net of foreign withholding tax of $117)		$442,863
Interest	+	47


Total investment income		442,910


Expenses
Investment adviser and administrator fees		16,399


Total expenses		16,399


Net investment income		426,511


Realized and Unrealized Gains (Losses)
Net realized losses on investments		(15,985	)
Net unrealized gains on investments	+	468,832


Net realized and unrealized gains		452,847


Net increase in net assets resulting from operations		$879,358


*	Commencement of operations.

See financial notes 43

Schwab U.S. Large-Cap ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on October 30, 2009, it has no prior report period.

Figures for the current period are unaudited.




Operations


		*10/30/09-02/28/10**
Net investment income		$426,511
Net realized losses		(15,985)
Net unrealized gains	+	468,832


Net Increase in net assets resulting from operations		$879,358


Distributions to Shareholders
Distributions from net investment income		$127,500




Transactions in Fund Shares


		*10/30/09-02/28/10**
		SHARES		VALUE
Shares Sold			4,450,001		$115,737,771
Shares Redeemed	+		—		—


Net transactions in fund shares			4,450,001		$115,737,771




Shares Outstanding and Net Assets


		*10/30/09-02/28/10**
		SHARES		NET ASSETS
Beginning of period			—		$—
Total increase	+		4,450,001		116,489,629


End of period			4,450,001		$116,489,629



Net investment income not yet distributed					$299,011


*	Commencement of operations.

44 See financial notes

Schwab U.S. Large-Cap Growth ETF ^tm

Financial Statements

Financial Highlights


	12/9/09¹–
	2/28/10*


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.04
Net realized and unrealized gains (losses)		0.80

Total from investment operations		0.84
Less distributions:
Distributions from net investment income		(0.01	)

Net asset value at end of period		25.83

Total return (%)		3.36	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.15	³
Gross operating expenses		0.15	³
Net investment income (loss)		0.87	³
Portfolio turnover rate⁴		0	^2,5
Net assets, end of period ($ x 1,000)		59,400

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Portfolio turnover rate excludes securities received or delivered from processing of in kind creations or redemptions.

⁵ Less than 1%.

See financial notes 45

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings as of February 28, 2010 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	99	.8%	Common Stock		59,284,571		59,289,366
	0	.1%	Other Investment Company		53,713		53,713
		—%	Rights		—		78


	99	.9%	Total Investments		59,338,284		59,343,157
	0	.1%	Other Assets and Liabilities, Net				57,010


	100	.0%	Net Assets				59,400,167


	Number		Value
Security	of Shares		($)

Common Stock 99.8% of net assets

Automobiles & Components 0.1%
BorgWarner, Inc. *		1,380		51,695
The Goodyear Tire & Rubber Co. *		2,806		36,450

				88,145

Banks 0.2%
Hudson City Bancorp, Inc.		5,658		76,496
TFS Financial Corp.		1,104		14,187

				90,683

Capital Goods 6.2%
Aecom Technology Corp. *		1,150		31,165
AGCO Corp. *		1,085		37,161
AMETEK, Inc.		1,242		48,488
Caterpillar, Inc.		7,314		417,264
Cummins, Inc.		2,116		120,146
Danaher Corp.		2,898		214,365
Deere & Co.		4,922		282,031
Donaldson Co., Inc.		828		34,163
Dover Corp.		2,189		99,074
Emerson Electric Co.		8,878		420,284
Fastenal Co.		1,656		73,477
First Solar, Inc. *		552		58,457
Flowserve Corp.		644		64,458
Fluor Corp.		2,116		90,565
Goodrich Corp.		1,426		93,588
Harsco Corp.		920		27,618
Illinois Tool Works, Inc.		5,014		228,237
ITT Corp.		2,116		108,403
Jacobs Engineering Group, Inc. *		1,518		58,898
Joy Global, Inc.		1,196		60,757
KBR, Inc.		1,886		39,059
Lincoln Electric Holdings, Inc.		460		21,942
McDermott International, Inc. *		2,668		60,964
MSC Industrial Direct Co., Class A		506		23,058
Navistar International Corp. *		644		25,219
Owens Corning, Inc. *		1,177		27,695
PACCAR, Inc.		4,048		143,097
Pall Corp.		1,380		54,469
Parker Hannifin Corp.		1,886		113,745
Precision Castparts Corp.		1,656		186,714
Quanta Services, Inc. *		2,300		43,700
Rockwell Collins, Inc.		1,840		103,555
Roper Industries, Inc.		1,058		58,656
Spirit AeroSystems Holdings, Inc., Class A *		1,196		22,868
SunPower Corp., Class A *		1,131		21,206
The Shaw Group, Inc. *		966		33,520
URS Corp. *		966		44,919
W.W. Grainger, Inc.		736		74,814

				3,667,799

Commercial & Professional Services 0.9%
Cintas Corp.		1,564		38,772
Copart, Inc. *		874		31,184
Corrections Corp. of America *		1,334		28,548
Covanta Holding Corp. *		1,518		25,578
Equifax, Inc.		1,472		47,487
FTI Consulting, Inc. *		598		21,970
IHS, Inc., Class A *		552		28,594
Iron Mountain, Inc. *		2,162		55,952
Manpower, Inc.		920		47,398
Robert Half International, Inc.		1,794		50,053
Stericycle, Inc. *		1,012		55,842
The Dun & Bradstreet Corp.		598		41,956
Towers Watson & Co., Class A		506		22,350
Verisk Analytics, Inc., Class A *		1,012		28,640
Waste Connections, Inc. *		920		30,930

				555,254

Consumer Durables & Apparel 0.9%
Coach, Inc.		3,680		134,099
Garmin Ltd.		1,380		44,091
NIKE, Inc., Class B		3,082		208,343
NVR, Inc. *		92		65,164
Polo Ralph Lauren Corp.		644		51,475
Pulte Homes, Inc. *		3,864		41,847

				545,019

Consumer Services 2.1%
Apollo Group, Inc., Class A *		1,518		90,898
Burger King Holdings, Inc.		1,058		18,928
Career Education Corp. *		736		20,476
Carnival Corp.		4,949		177,966
Chipotle Mexican Grill, Inc. *		368		38,533
Darden Restaurants, Inc.		1,610		65,286
DeVry, Inc.		736		46,478
Education Management Corp. *		230		4,579
International Game Technology		3,496		61,355
ITT Educational Services, Inc. *		414		45,143
Las Vegas Sands Corp. *		5,087		84,597
MGM MIRAGE *		2,898		30,545
Penn National Gaming, Inc. *		782		18,095

46 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Starbucks Corp. *		8,556		196,018
Strayer Education, Inc.		184		41,737
Weight Watchers International, Inc.		414		10,648
Wendy’s/Arby’s Group, Inc., Class A		4,324		21,101
Wyndham Worldwide Corp.		2,070		47,589
Wynn Resorts Ltd.		874		55,560
Yum! Brands, Inc.		5,428		183,032

				1,258,564

Diversified Financials 3.3%
Affiliated Managers Group, Inc. *		506		35,992
BlackRock, Inc.		506		110,713
CIT Group, Inc. *		2,346		85,465
CME Group, Inc.		782		235,922
Discover Financial Services		6,375		87,019
Eaton Vance Corp.		1,380		41,662
Franklin Resources, Inc.		1,840		187,165
IntercontinentalExchange, Inc. *		828		88,836
Jefferies Group, Inc.		1,288		32,148
Leucadia National Corp. *		2,254		53,510
Moody’s Corp.		2,235		59,496
MSCI, Inc., Class A *		1,196		35,856
Northern Trust Corp.		2,852		151,983
Raymond James Financial, Inc.		1,150		29,739
SEI Investments Co.		1,794		31,610
State Street Corp.		5,796		260,298
T. Rowe Price Group, Inc.		2,990		151,563
TD Ameritrade Holding Corp. *		2,760		48,272
The Charles Schwab Corp. (a)		11,067		202,637
The NASDAQ OMX Group, Inc. *		1,932		35,993

				1,965,879

Energy 9.9%
Alpha Natural Resources, Inc. *		1,840		84,658
Anadarko Petroleum Corp.		5,750		403,248
Arch Coal, Inc.		1,886		42,416
Baker Hughes, Inc.		3,634		174,141
BJ Services Co.		3,450		75,383
Cabot Oil & Gas Corp.		1,196		48,008
Cameron International Corp. *		2,898		119,195
Chesapeake Energy Corp.		7,590		201,666
Cimarex Energy Co.		966		57,728
CNX Gas Corp. *		322		8,433
Cobalt International Energy, Inc. *		736		9,082
Concho Resources, Inc. *		828		38,461
CONSOL Energy, Inc.		2,116		106,562
Continental Resources, Inc. *		368		14,529
Denbury Resources, Inc. *		2,898		40,804
Diamond Offshore Drilling, Inc.		782		68,284
EOG Resources, Inc.		2,944		276,883
EXCO Resources, Inc.		2,024		38,274
FMC Technologies, Inc. *		1,472		82,682
Halliburton Co.		10,488		316,213
Helmerich & Payne, Inc.		1,150		46,598
Hess Corp.		3,450		202,860
Murphy Oil Corp.		2,208		114,595
Nabors Industries Ltd. *		3,358		74,010
National-Oilwell Varco, Inc.		4,903		213,134
Noble Energy, Inc.		2,051		148,985
Occidental Petroleum Corp.		9,522		760,332
Oceaneering International, Inc. *		598		36,149
Patterson-UTI Energy, Inc.		1,794		27,699
Peabody Energy Corp.		3,109		142,921
Petrohawk Energy Corp. *		3,542		75,799
Plains Exploration & Production Co. *		1,656		54,333
Pride International, Inc. *		1,821		50,952
Quicksilver Resources, Inc. *		1,380		20,590
Range Resources Corp.		1,840		93,122
Rowan Cos., Inc. *		1,242		32,317
Schlumberger Ltd.		13,984		854,422
Smith International, Inc.		2,576		105,590
Southwestern Energy Co. *		4,002		170,285
Tesoro Corp.		1,610		19,191
Ultra Petroleum Corp. *		1,794		82,040
Whiting Petroleum Corp. *		598		44,760
XTO Energy, Inc.		6,762		309,023

				5,886,357

Food & Staples Retailing 4.6%
Costco Wholesale Corp.		5,060		308,508
CVS Caremark Corp.		16,560		558,900
Wal-Mart Stores, Inc.		25,668		1,387,869
Walgreen Co.		11,638		410,123
Whole Foods Market, Inc. *		1,315		46,669

				2,712,069

Food, Beverage & Tobacco 2.2%
Dean Foods Co. *		2,116		30,873
Flowers Foods, Inc.		1,012		25,796
Hansen Natural Corp. *		874		36,358
PepsiCo, Inc.		19,071		1,191,365
Ralcorp Holdings, Inc. *		644		43,026

				1,327,418

Health Care Equipment & Services 8.6%
Aetna, Inc.		5,133		153,939
AmerisourceBergen Corp.		3,496		98,028
Baxter International, Inc.		7,084		403,292
Beckman Coulter, Inc.		828		54,284
Becton, Dickinson & Co.		2,668		207,757
Boston Scientific Corp. *		17,710		137,075
C.R. Bard, Inc.		1,150		96,347
CareFusion Corp. *		2,097		52,928
Cerner Corp. *		736		61,051
Community Health Systems, Inc. *		1,104		37,834
Coventry Health Care, Inc. *		1,729		40,078
DaVita, Inc. *		1,196		73,686
DENTSPLY International, Inc.		1,748		57,841
Edwards Lifesciences Corp. *		644		59,139
Express Scripts, Inc. *		2,990		287,070
Gen-Probe, Inc. *		552		24,884
Henry Schein, Inc. *		1,058		60,126
Hologic, Inc. *		2,990		51,578
Hospira, Inc. *		1,886		98,694
IDEXX Laboratories, Inc. *		690		36,439
Intuitive Surgical, Inc. *		460		159,684
Inverness Medical Innovations, Inc. *		966		37,693
Kinetic Concepts, Inc. *		736		30,853
Laboratory Corp. of America Holdings *		1,242		91,051

See financial notes 47

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Lincare Holdings, Inc. *		782		31,405
McKesson Corp.		3,174		187,742
Medco Health Solutions, Inc. *		5,566		351,994
Medtronic, Inc.		13,018		564,981
Patterson Cos., Inc. *		1,150		34,132
Quest Diagnostics, Inc.		1,794		101,810
ResMed, Inc. *		874		49,888
St. Jude Medical, Inc. *		3,910		149,440
Stryker Corp.		3,588		190,523
UnitedHealth Group, Inc.		13,643		461,952
Varian Medical Systems, Inc. *		1,453		71,154
WellPoint, Inc. *		5,382		332,984
Zimmer Holdings, Inc. *		2,530		145,045

				5,084,401

Household & Personal Products 1.4%
Avon Products, Inc.		4,968		151,226
Church & Dwight Co., Inc.		828		55,625
Colgate-Palmolive Co.		5,888		488,351
Energizer Holdings, Inc. *		828		47,983
The Estee Lauder Cos., Inc., Class A		1,380		82,979

				826,164

Insurance 3.1%
Berkshire Hathaway, Inc., Class B *		22,439		1,798,037
Brown & Brown, Inc.		1,334		22,385

				1,820,422

Materials 4.8%
Airgas, Inc.		828		53,108
Albemarle Corp.		1,085		40,677
Alcoa, Inc.		11,408		151,726
Ball Corp.		1,104		59,660
Celanese Corp., Series A		1,702		53,085
Cliffs Natural Resources, Inc.		1,518		85,615
Crown Holdings, Inc. *		1,886		51,526
Ecolab, Inc.		2,760		116,306
FMC Corp.		828		47,337
Freeport-McMoRan Copper & Gold, Inc.		4,830		363,023
Intrepid Potash, Inc. *		506		13,925
Martin Marietta Materials, Inc.		506		40,085
Monsanto Co.		6,348		448,486
Newmont Mining Corp.		5,612		276,559
Nucor Corp.		3,358		139,021
Pactiv Corp. *		1,564		38,725
Praxair, Inc.		3,634		273,059
Reliance Steel & Aluminum Co.		736		32,634
Sigma-Aldrich Corp.		1,223		58,325
Southern Copper Corp.		2,484		72,930
Steel Dynamics, Inc.		2,530		41,315
Terra Industries, Inc.		1,150		47,346
The Lubrizol Corp.		828		65,420
The Mosaic Co.		1,748		102,066
United States Steel Corp.		1,702		90,104
Vulcan Materials Co.		1,334		57,909
Walter Energy, Inc.		598		46,985

				2,866,957

Media 3.0%
Cablevision Systems Corp., Class A		2,806		67,569
Clear Channel Outdoor Holdings, Inc., Class A *		506		4,817
Comcast Corp., Class A		33,791		555,524
DIRECTV, Class A *		11,592		392,389
Discovery Communications, Inc., Series A *		3,266		101,736
DISH Network Corp., Class A		2,484		49,605
DreamWorks Animation SKG, Inc., Class A *		828		35,985
John Wiley & Sons, Inc., Class A		598		25,104
Liberty Global, Inc., Series A *		2,990		80,371
Liberty Media - Starz, Series A *		598		30,456
Madison Square Garden, Inc., Class A *		736		14,352
Omnicom Group, Inc.		3,634		133,077
Scripps Networks Interactive, Class A		1,012		40,055
The Interpublic Group of Cos., Inc. *		5,704		42,780
The Washington Post Co., Class B		46		19,334
Time Warner Cable, Inc.		4,140		193,297

				1,786,451

Pharmaceuticals, Biotechnology & Life Sciences 5.5%
Alexion Pharmaceuticals, Inc. *		1,012		50,114
Allergan, Inc.		3,588		209,647
Amgen, Inc. *		11,895		673,376
Amylin Pharmaceuticals, Inc. *		1,499		28,331
Biogen Idec, Inc. *		3,385		186,209
Celgene Corp. *		5,409		321,944
Cephalon, Inc. *		874		60,018
Charles River Laboratories International, Inc. *		782		29,653
Covance, Inc. *		736		41,672
Endo Pharmaceuticals Holdings, Inc. *		1,196		27,209
Genzyme Corp. *		3,128		178,922
Gilead Sciences, Inc. *		10,699		509,379
Illumina, Inc. *		1,426		51,792
Life Technologies Corp. *		2,116		107,408
Mettler-Toledo International, Inc. *		414		41,156
Millipore Corp. *		644		60,800
Mylan, Inc. *		3,542		75,586
Myriad Genetics, Inc. *		1,104		25,392
OSI Pharmaceuticals, Inc. *		690		25,544
PerkinElmer, Inc.		1,380		30,650
Perrigo Co.		966		47,885
Pharmaceutical Product Development, Inc.		1,288		27,125
Techne Corp.		460		29,403
Thermo Fisher Scientific, Inc. *		4,784		233,316
Vertex Pharmaceuticals, Inc. *		2,254		91,535
Waters Corp. *		1,150		68,609
Watson Pharmaceuticals, Inc. *		1,242		49,419

				3,282,094

Real Estate 0.9%
CB Richard Ellis Group, Inc., Class A *		2,898		38,254
Digital Realty Trust, Inc.		828		42,708
Public Storage		1,518		124,764

48 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Simon Property Group, Inc.		3,358		262,898
Ventas, Inc.		1,840		81,310

				549,934

Retailing 5.5%
Abercrombie & Fitch Co., Class A		1,012		36,857
Advance Auto Parts, Inc.		1,104		45,043
Amazon.com, Inc. *		3,634		430,266
American Eagle Outfitters, Inc.		2,070		34,921
AutoZone, Inc. *		368		61,062
Bed Bath & Beyond, Inc. *		3,082		128,242
Best Buy Co., Inc.		3,983		145,379
CarMax, Inc. *		2,300		46,437
Dollar General Corp. *		414		9,890
Dollar Tree, Inc. *		1,039		57,914
Expedia, Inc. *		2,438		54,221
Family Dollar Stores, Inc.		1,564		51,596
GameStop Corp., Class A *		1,886		32,439
Guess?, Inc.		690		28,145
Kohl’s Corp. *		3,358		180,728
Lowe’s Cos., Inc.		17,185		407,456
Netflix, Inc. *		552		36,460
Nordstrom, Inc.		1,978		73,067
O’Reilly Automotive, Inc. *		1,610		63,273
PetSmart, Inc.		1,472		40,068
Priceline.com, Inc. *		506		114,741
Ross Stores, Inc.		1,472		71,995
Sears Holdings Corp. *		690		66,012
Staples, Inc.		8,464		218,033
Target Corp.		8,050		414,736
The Sherwin-Williams Co.		1,104		69,972
The TJX Cos., Inc.		5,014		208,733
Tiffany & Co.		1,426		63,300
Urban Outfitters, Inc. *		1,518		48,895

				3,239,881

Semiconductors & Semiconductor Equipment 3.1%
Advanced Micro Devices, Inc. *		7,176		56,762
Altera Corp.		3,450		84,284
Analog Devices, Inc.		3,385		98,977
Applied Materials, Inc.		15,732		192,560
Broadcom Corp., Class A		5,060		158,479
Cree, Inc. *		1,104		74,884
KLA-Tencor Corp.		2,024		58,959
Lam Research Corp. *		1,472		49,916
Linear Technology Corp.		2,438		66,240
LSI Corp. *		7,590		40,910
Marvell Technology Group Ltd. *		5,750		111,090
Maxim Integrated Products, Inc.		3,588		66,450
MEMC Electronic Materials, Inc. *		2,622		31,752
Micron Technology, Inc. *		9,936		90,020
National Semiconductor Corp.		2,760		39,965
NVIDIA Corp. *		6,394		103,583
ON Semiconductor Corp. *		4,922		39,179
Texas Instruments, Inc.		14,931		364,018
Varian Semiconductor Equipment Associates, Inc. *		828		24,906
Xilinx, Inc.		3,266		84,361

				1,837,295

Software & Services 15.4%
Activision Blizzard, Inc.		6,605		70,211
Adobe Systems, Inc. *		6,118		211,989
Akamai Technologies, Inc. *		2,024		53,231
Alliance Data Systems Corp. *		598		33,153
ANSYS, Inc. *		1,012		44,386
Autodesk, Inc. *		2,622		73,101
Automatic Data Processing, Inc.		5,869		244,209
BMC Software, Inc. *		2,162		79,648
Broadridge Financial Solutions, Inc.		1,656		34,842
CA, Inc.		4,922		110,745
Citrix Systems, Inc. *		2,162		92,988
Cognizant Technology Solutions Corp., Class A *		3,450		166,048
DST Systems, Inc. *		460		17,678
eBay, Inc. *		12,834		295,439
Electronic Arts, Inc. *		3,772		62,540
Equinix, Inc. *		460		43,456
FactSet Research Systems, Inc.		506		33,497
Fidelity National Information Services, Inc.		3,864		87,095
Fiserv, Inc. *		1,794		86,525
Genpact Ltd. *		690		10,412
Global Payments, Inc.		920		39,385
Google, Inc., Class A *		2,714		1,429,735
Hewitt Associates, Inc., Class A *		1,012		38,446
IAC/InterActiveCorp *		1,131		25,323
Intuit, Inc. *		3,431		111,027
Lender Processing Services, Inc.		1,104		42,151
ManTech International Corp., Class A *		230		11,357
MasterCard, Inc., Class A		1,150		258,025
McAfee, Inc. *		1,840		73,030
Microsoft Corp.		92,897		2,662,428
Nuance Communications, Inc. *		2,622		37,731
Oracle Corp.		44,923		1,107,352
Paychex, Inc.		3,818		114,311
Red Hat, Inc. *		2,208		61,934
Rovi Corp. *		1,196		40,066
SAIC, Inc. *		2,208		43,498
Salesforce.com, Inc. *		1,196		81,268
Sybase, Inc. *		966		42,881
Symantec Corp. *		9,614		159,112
Total System Services, Inc.		2,300		32,752
VeriSign, Inc. *		2,281		56,842
Visa, Inc., Class A		5,060		431,517
VMware, Inc., Class A *		460		22,775
Western Union Co.		8,050		127,029
Yahoo!, Inc. *		15,253		233,523

				9,134,691

Technology Hardware & Equipment 14.1%
Agilent Technologies, Inc. *		4,048		127,350
Amphenol Corp., Class A		2,024		84,300
Apple, Inc. *		10,442		2,136,642
Arrow Electronics, Inc. *		1,380		38,930
Avnet, Inc. *		1,748		48,262
Brocade Communications Systems, Inc. *		4,876		28,378
Cisco Systems, Inc. *		67,737		1,648,041
Corning, Inc.		18,354		323,581

See financial notes 49

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Dell, Inc. *		20,240		267,775
Dolby Laboratories, Inc., Class A *		644		34,306
EMC Corp. *		23,644		413,534
F5 Networks, Inc. *		920		51,336
FLIR Systems, Inc. *		1,748		46,864
Harris Corp.		1,545		69,865
Hewlett-Packard Co.		27,857		1,414,857
Itron, Inc. *		460		30,797
Juniper Networks, Inc. *		6,210		173,756
Motorola, Inc. *		25,208		170,406
NCR Corp. *		1,840		23,221
NetApp, Inc. *		3,937		118,149
QUALCOMM, Inc.		19,255		706,466
SanDisk Corp. *		2,668		77,719
Seagate Technology *		5,842		116,314
Tellabs, Inc.		4,094		28,289
Teradata Corp. *		2,024		61,712
Trimble Navigation Ltd. *		1,380		37,081
Western Digital Corp. *		2,649		102,331

				8,380,262

Telecommunication Services 0.8%
American Tower Corp., Class A *		4,692		200,161
Clearwire Corp., Class A *		920		5,851
Crown Castle International Corp. *		2,898		109,544
MetroPCS Communications, Inc. *		2,990		18,448
NII Holdings, Inc. *		1,932		72,296
SBA Communications Corp., Class A *		1,380		48,797

				455,097

Transportation 2.4%
C.H. Robinson Worldwide, Inc.		1,959		104,473
CSX Corp.		4,600		218,316
Delta Air Lines, Inc. *		9,062		117,081
Expeditors International of Washington, Inc.		2,484		90,592
FedEx Corp.		3,404		288,523
Hertz Global Holdings, Inc. *		2,162		20,323
J.B. Hunt Transport Services, Inc.		1,150		40,802
Kansas City Southern *		1,104		37,867
Southwest Airlines Co.		8,740		109,949
Union Pacific Corp.		5,888		396,675

				1,424,601

Utilities 0.8%
Allegheny Energy, Inc.		1,978		44,802
Calpine Corp. *		4,094		44,788
Constellation Energy Group, Inc.		2,116		74,208
EQT Corp.		1,426		62,402
ITC Holdings Corp.		579		30,907
ONEOK, Inc.		1,196		53,019
Questar Corp.		2,024		84,988
RRI Energy, Inc. *		4,094		17,399
The AES Corp. *		7,820		91,416

				503,929

Total Common Stock (Cost $59,284,571)				59,289,366




Other Investment Company 0.1% of net assets


State Street Institutional Liquid Reserves Fund		53,713		53,713

Total Other Investment Company (Cost $53,713)				53,713




Rights 0.0% of net assets

Telecommunication Services 0.0%
Clearwire Corp. *		270		78

Total Rights (Cost $—)				78



End of Investments

At 02/28/10, the tax basis cost of the fund’s investments was $59,338,512 and the unrealized appreciation and depreciation were $1,441,960 and ($1,437,315), respectively, with a net unrealized appreciation of $4,645.


*		Non-income producing security.
(a)		Issuer is affiliated with the fund’s adviser.

50 See financial notes

Schwab U.S. Large-Cap Growth ETF

Statement of

Assets and Liabilities

As of February 28, 2010 (unaudited)




Assets
Investments, at value (cost $59,338,284)		$59,343,157
Cash		46,552
Receivables:
Fund shares sold		1,287,710
Dividends		50,945
Interest	+	11


Total assets		60,728,375


Liabilities
Payables:
Investments bought		1,327,456
Investment adviser and administrator fees	+	752


Total liabilities		1,328,208


Net Assets
Total assets		60,728,375
Total liabilities	—	1,328,208


Net assets		$59,400,167
Net Assets by Source
Capital received from investors		58,884,321
Net investment income not yet distributed		63,792
Net realized capital gains		447,181
Net unrealized capital gains		4,873

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$59,400,167

2,300,001

$25.83

See financial notes 51

Schwab U.S. Large-Cap Growth ETF

Statement of

Operations

For December 9, 2009* through February 28, 2010 (unaudited)




Investment Income
Dividends (including $673 from affiliated issuer and net of foreign withholding tax of $52)		$83,610
Interest	+	22


Total investment income		83,632


Expenses
Investment adviser and administrator fees		12,340


Total expenses		12,340


Net investment income		71,292


Realized and Unrealized Gains (Losses)
Net realized gains on investments (including $267 gain from affiliated issuer)		6,656
Net realized gains on in-kind redemptions	+	440,525


Net realized gains		447,181
Net unrealized gains on investments	+	4,873


Net realized and unrealized gains		452,054


Net increase in net assets resulting from operations		$523,346


*	Commencement of operations.

52 See financial notes

Schwab U.S. Large-Cap Growth ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on December 9, 2009, it has no prior report period.

Figures for the current period are unaudited.




Operations


		*12/9/09-02/28/10**
Net investment income		$71,292
Net realized gains		447,181
Net unrealized gains	+	4,873


Net Increase in net assets resulting from operations		$523,346


Distributions to Shareholders
Distributions from net investment income		$7,500




Transactions in Fund Shares


		*12/9/09-02/28/10**
		SHARES			VALUE
Shares Sold			2,550,001			$65,352,239
Shares Redeemed	+		(250,000	)		(6,467,918	)


Net transactions in fund shares			2,300,001			$58,884,321




Shares Outstanding and Net Assets


		*12/9/09-02/28/10**
		SHARES		NET ASSETS
Beginning of period			—		$—
Total increase	+		2,300,001		59,400,167


End of period			2,300,001		$59,400,167



Net investment income not yet distributed					$63,792


*	Commencement of operations.

See financial notes 53

Schwab U.S. Large-Cap Value ETF ^tm

Financial Statements

Financial Highlights


	12/9/09¹–
	2/28/10*


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.13
Net realized and unrealized gains (losses)		0.10

Total from investment operations		0.23
Less distributions:
Distributions from net investment income		(0.04	)

Net asset value at end of period		25.19

Total return (%)		0.92	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.15	³
Gross operating expenses		0.15	³
Net investment income (loss)		3.22	³
Portfolio turnover rate⁴		1	²
Net assets, end of period ($ x 1,000)		34,011

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Portfolio turnover rate excludes securities received or delivered from processing of in kind creations or redemptions.

54 See financial notes

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings as of February 28, 2010 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

Cost

Value

Holdings by Category

($)

.6%

Common Stock

33,979,381

33,888,878

.1%

Other Investment Company

21,560

.7%

Total Investments

34,000,941

33,910,438

.3%

Other Assets and
Liabilities, Net

100,399

100

.0%

Net Assets

34,010,837


	Number		Value
Security	of Shares		($)

Common Stock 99.6% of net assets

Automobiles & Components 1.2%
Ford Motor Co. *		19,639		230,562
Harley-Davidson, Inc.		1,431		35,217
Johnson Controls, Inc.		4,114		127,945

				393,724

Banks 5.4%
BB&T Corp.		4,185		119,398
BOK Financial Corp.		135		6,207
Capitol Federal Financial		135		4,674
City National Corp.		270		13,478
Comerica, Inc.		920		33,194
Commerce Bancshares, Inc.		407		16,488
Cullen/Frost Bankers, Inc.		351		19,007
Fifth Third Bancorp		4,887		59,670
First Horizon National Corp. *		1,351		17,293
KeyCorp		5,454		38,996
M&T Bank Corp.		434		33,605
New York Community Bancorp, Inc.		2,594		40,181
People’s United Financial, Inc.		2,137		33,700
PNC Financial Services Group, Inc.		3,133		168,430
Regions Financial Corp.		7,290		49,208
SunTrust Banks, Inc.		3,078		73,287
U.S. Bancorp		11,664		287,051
Wells Fargo & Co.		29,918		817,958

				1,831,825

Capital Goods 8.8%
3M Co.		3,917		313,948
Alliant Techsystems, Inc. *		191		15,175
Eaton Corp.		1,026		69,891
General Dynamics Corp.		1,973		143,141
General Electric Co.		64,480		1,035,549
Honeywell International, Inc.		4,274		171,644
Hubbell, Inc., Class B		334		15,648
L-3 Communications Holdings, Inc.		702		64,177
Lockheed Martin Corp.		1,863		144,867
Masco Corp.		2,216		29,628
Northrop Grumman Corp.		1,784		109,288
Pentair, Inc.		596		19,406
Raytheon Co.		2,353		132,333
Rockwell Automation, Inc.		843		45,598
SPX Corp.		299		17,787
Textron, Inc.		1,674		33,346
The Boeing Co.		3,996		252,387
The Stanley Works		486		27,823
United Technologies Corp.		5,271		361,854

				3,003,490

Commercial & Professional Services 0.7%
Avery Dennison Corp.		702		22,183
Pitney Bowes, Inc.		1,271		29,106
R.R. Donnelley & Sons Co.		1,269		25,240
Republic Services, Inc.		1,892		53,241
Waste Management, Inc.		2,787		92,027

				221,797

Consumer Durables & Apparel 0.9%
D.R. Horton, Inc.		1,701		21,024
Fortune Brands, Inc.		920		40,324
Hasbro, Inc.		758		27,121
Leggett & Platt, Inc.		920		17,434
Mattel, Inc.		2,216		48,730
Mohawk Industries, Inc. *		351		18,105
Newell Rubbermaid, Inc.		1,711		23,526
The Black & Decker Corp.		378		27,394
Toll Brothers, Inc. *		810		15,252
VF Corp.		542		41,940
Whirlpool Corp.		459		38,629

				319,479

Consumer Services 1.7%
H&R Block, Inc.		2,079		35,925
Hyatt Hotels Corp., Class A *		216		7,221
Marriott International, Inc., Class A		1,917		51,970
McDonald’s Corp.		6,565		419,175
Royal Caribbean Cruises Ltd. *		812		22,955
Starwood Hotels & Resorts Worldwide, Inc.		1,055		40,829

				578,075

Diversified Financials 11.4%
American Express Co.		6,453		246,440
Ameriprise Financial, Inc.		1,566		62,687
Bank of America Corp.		60,700		1,011,262
Bank of New York Mellon Corp.		7,317		208,681
Capital One Financial Corp.		2,754		103,963
Citigroup, Inc. *		126,036		428,522
Federated Investors, Inc., Class B		623		15,581
Invesco Ltd.		2,625		51,450
JPMorgan Chase & Co.		24,013		1,007,826
Legg Mason, Inc.		974		25,178
Morgan Stanley		7,587		213,802
NYSE Euronext		1,593		42,023

See financial notes 55

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
SLM Corp. *		2,899		32,411
The Goldman Sachs Group, Inc.		2,619		409,481

				3,859,307

Energy 11.9%
Apache Corp.		2,025		209,871
Chevron Corp.		12,231		884,301
ConocoPhillips		7,965		382,320
Devon Energy Corp.		2,567		176,763
El Paso Corp.		4,320		45,230
Exxon Mobil Corp.		28,971		1,883,115
Forest Oil Corp. *		621		16,829
Marathon Oil Corp.		4,347		125,846
Newfield Exploration Co. *		810		41,367
Pioneer Natural Resources Co.		675		31,489
Spectra Energy Corp.		3,915		85,347
Sunoco, Inc.		702		18,512
The Williams Cos., Inc.		3,520		75,821
Tidewater, Inc.		324		14,441
Valero Energy Corp.		3,456		60,549

				4,051,801

Food & Staples Retailing 0.8%
Safeway, Inc.		2,490		62,051
SUPERVALU, Inc.		1,296		19,790
Sysco Corp.		3,618		104,560
The Kroger Co.		3,726		82,345

				268,746

Food, Beverage & Tobacco 8.5%
Altria Group, Inc.		12,592		253,351
Archer-Daniels-Midland Co.		3,591		105,432
Brown-Forman Corp., Class B		677		35,448
Bunge Ltd.		735		43,799
Campbell Soup Co.		1,325		44,162
Coca-Cola Enterprises, Inc.		1,946		49,720
ConAgra Foods, Inc.		2,754		67,363
Constellation Brands, Inc., Class A *		1,215		18,274
Dr. Pepper Snapple Group, Inc.		1,458		46,292
General Mills, Inc.		1,890		136,099
H.J. Heinz Co.		1,919		88,082
Hormel Foods Corp.		434		17,842
Kellogg Co.		1,460		76,139
Kraft Foods, Inc., Class A		9,747		277,107
Lorillard, Inc.		974		71,141
McCormick & Co., Inc.		704		26,125
Molson Coors Brewing Co., Class B		972		39,249
Philip Morris International, Inc.		11,612		568,756
Reynolds American, Inc.		1,028		54,278
Sara Lee Corp.		4,050		54,918
Smithfield Foods, Inc. *		947		16,298
The Coca-Cola Co.		12,997		685,202
The Hershey Co.		974		38,726
The J.M. Smucker Co.		729		43,507
Tyson Foods, Inc., Class A		1,809		30,825

				2,888,135

Health Care Equipment & Services 0.7%
Cardinal Health, Inc.		2,197		74,632
CIGNA Corp.		1,674		57,351
Humana, Inc. *		1,053		49,839
Omnicare, Inc.		729		19,734
Teleflex, Inc.		243		14,808
Universal Health Services, Inc., Class B		542		16,813

				233,177

Household & Personal Products 4.2%
Alberto-Culver Co.		540		14,969
Kimberly-Clark Corp.		2,540		154,280
Mead Johnson Nutrition Co., Class A		1,225		57,942
The Clorox Co.		839		51,439
The Procter & Gamble Co.		17,884		1,131,699

				1,410,329

Insurance 5.3%
Aflac, Inc.		2,862		141,526
Alleghany Corp. *		29		8,040
Allied World Assurance Co. Holdings Ltd.		226		10,419
American Financial Group, Inc.		486		12,573
American International Group, Inc. *		729		18,057
Aon Corp.		1,485		60,796
Arch Capital Group Ltd. *		324		23,970
Assurant, Inc.		729		22,249
Axis Capital Holdings Ltd.		864		27,173
Cincinnati Financial Corp.		918		24,694
CNA Financial Corp. *		189		4,648
Everest Re Group Ltd.		334		28,530
Fidelity National Financial, Inc., Class A		1,431		20,392
First American Corp.		739		23,818
Genworth Financial, Inc., Class A *		2,953		47,071
Hanover Insurance Group, Inc.		299		12,603
HCC Insurance Holdings, Inc.		675		18,832
Lincoln National Corp.		1,811		45,601
Loews Corp.		2,160		78,754
Markel Corp. *		56		19,754
Marsh & McLennan Cos., Inc.		3,213		74,606
MetLife, Inc.		3,537		128,711
Old Republic International Corp.		1,404		15,851
PartnerRe Ltd.		378		30,093
Principal Financial Group, Inc.		1,836		42,614
Prudential Financial, Inc.		2,837		148,687
Reinsurance Group of America, Inc.		459		21,816
RenaissanceRe Holdings Ltd.		380		21,037
The Allstate Corp.		3,294		102,937
The Chubb Corp.		2,083		105,108
The Hartford Financial Services Group, Inc.		2,376		57,903
The Progressive Corp.		3,888		66,679
The Travelers Cos., Inc.		3,331		175,177
Torchmark Corp.		513		23,854
Transatlantic Holdings, Inc.		351		17,445
Unum Group		2,025		42,140
W.R. Berkley Corp.		866		22,291
Wesco Financial Corp.		7		2,629

56 See financial notes

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
White Mountains Insurance Group Ltd.		27		9,359
XL Capital Ltd., Class A		2,106		38,477

				1,796,914

Materials 2.6%
Air Products & Chemicals, Inc.		1,215		83,325
Allegheny Technologies, Inc.		540		23,576
AptarGroup, Inc.		380		14,641
Bemis Co., Inc.		648		18,967
CF Industries Holdings, Inc.		351		37,290
E.I. du Pont de Nemours & Co.		5,186		174,872
Eastman Chemical Co.		405		24,118
International Flavors & Fragrances, Inc.		486		20,465
International Paper Co.		2,432		56,349
MeadWestvaco Corp.		918		21,059
Owens-Illinois, Inc. *		1,026		30,411
PPG Industries, Inc.		1,026		63,140
Sealed Air Corp.		972		19,858
Sonoco Products Co.		596		17,630
The Dow Chemical Co.		6,993		197,972
The Scotts Miracle-Gro Co., Class A		270		10,544
The Valspar Corp.		567		15,513
Weyerhaeuser Co.		1,296		52,358

				882,088

Media 2.9%
CBS Corp., Class B		3,726		48,401
Interactive Data Corp.		216		6,547
News Corp., Class A		14,185		189,653
The McGraw-Hill Cos., Inc.		1,917		65,561
The Walt Disney Co.		10,827		338,236
Time Warner, Inc.		7,138		207,288
Viacom, Inc., Class B *		3,296		97,726
Virgin Media, Inc.		1,784		28,901

				982,313

Pharmaceuticals, Biotechnology & Life Sciences 10.8%
Abbott Laboratories		9,396		510,015
Bristol-Myers Squibb Co.		10,405		255,027
Dendreon Corp. *		812		25,359
Eli Lilly & Co.		6,021		206,761
Forest Laboratories, Inc. *		1,863		55,666
Johnson & Johnson		16,875		1,063,125
King Pharmaceuticals, Inc. *		1,522		17,122
Merck & Co., Inc.		18,613		686,447
Pfizer, Inc.		49,173		862,986
Talecris Biotherapeutics Holdings Corp. *		299		6,405

				3,688,913

Real Estate 2.1%
AMB Property Corp.		891		21,687
Annaly Capital Management, Inc.		3,383		62,180
AvalonBay Communities, Inc.		496		40,384
Boston Properties, Inc.		837		56,857
Brookfield Properties Corp.		1,593		22,095
Equity Residential		1,674		60,398
Federal Realty Investment Trust		380		26,205
HCP, Inc.		1,782		51,286
Health Care REIT, Inc.		756		32,024
Host Hotels & Resorts, Inc. *		3,844		45,013
Kimco Realty Corp.		2,432		33,781
Liberty Property Trust		677		20,940
Nationwide Health Properties, Inc.		685		22,735
Piedmont Office Realty Trust, Inc., Class A *		351		5,879
Plum Creek Timber Co., Inc.		999		35,694
ProLogis		2,872		37,020
Rayonier, Inc.		486		20,203
Realty Income Corp.		648		18,144
Regency Centers Corp.		523		18,132
The St. Joe Co. *		567		15,593
Vornado Realty Trust		1,107		72,752

				719,002

Retailing 1.8%
AutoNation, Inc. *		459		8,147
Genuine Parts Co.		974		39,311
J.C. Penney Co., Inc.		1,271		35,054
Liberty Media Corp. - Interactive, Series A *		3,645		45,891
Limited Brands, Inc.		1,674		37,012
Macy’s, Inc.		2,565		49,120
The Gap, Inc.		3,107		66,800
The Home Depot, Inc.		10,378		323,794

				605,129

Semiconductors & Semiconductor Equipment 2.1%
Intel Corp.		33,947		696,932
Microchip Technology, Inc.		1,109		30,009

				726,941

Software & Services 0.2%
AOL, Inc. *		653		16,181
Computer Sciences Corp. *		920		47,647
Synopsys, Inc. *		901		19,732

				83,560

Technology Hardware & Equipment 3.3%
Ingram Micro, Inc., Class A *		974		17,240
International Business Machines Corp.		8,046		1,023,129
Molex, Inc.		785		16,053
Xerox Corp.		8,291		77,687

				1,134,109

Telecommunication Services 4.8%
AT&T, Inc.		36,269		899,834
CenturyTel, Inc.		1,811		62,063
Frontier Communications Corp.		1,900		14,801
Level 3 Communications, Inc. *		9,882		15,713
Qwest Communications International, Inc.		8,559		39,029
Sprint Nextel Corp. *		17,637		58,731
Telephone & Data Systems, Inc.		596		18,601
United States Cellular Corp. *		108		3,956

See financial notes 57

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Verizon Communications, Inc.		17,452		504,886
Windstream Corp.		2,700		27,351

				1,644,965

Transportation 1.1%
Norfolk Southern Corp.		2,243		115,357
Ryder System, Inc.		351		12,387
United Parcel Service, Inc., Class B		4,266		250,585

				378,329

Utilities 6.4%
AGL Resources, Inc.		461		16,748
Alliant Energy Corp.		675		21,350
Ameren Corp.		1,298		32,074
American Electric Power Co., Inc.		2,916		98,036
American Water Works Co., Inc.		542		12,065
Aqua America, Inc.		837		14,329
Atmos Energy Corp.		567		15,570
CenterPoint Energy, Inc.		2,193		29,342
CMS Energy Corp.		1,404		21,439
Consolidated Edison, Inc.		1,711		73,145
Dominion Resources, Inc.		3,653		138,777
DPL, Inc.		729		19,348
DTE Energy Co.		1,001		43,463
Duke Energy Corp.		7,884		128,903
Dynegy, Inc., Class A *		3,078		4,617
Edison International		1,836		59,909
Energen Corp.		434		19,730
Entergy Corp.		1,165		88,505
Exelon Corp.		4,050		175,365
FirstEnergy Corp.		1,865		72,082
FPL Group, Inc.		2,332		108,135
Integrys Energy Group, Inc.		461		20,321
MDU Resources Group, Inc.		1,063		21,728
Mirant Corp. *		891		11,209
National Fuel Gas Co.		407		20,244
NiSource, Inc.		1,674		25,143
Northeast Utilities		1,080		27,648
NRG Energy, Inc. *		1,572		34,333
NSTAR		650		21,983
NV Energy, Inc.		1,431		15,898
OGE Energy Corp.		594		21,717
Pepco Holdings, Inc.		1,350		22,707
PG&E Corp.		2,270		95,158
Piedmont Natural Gas Co., Inc.		405		10,461
Pinnacle West Capital Corp.		621		22,611
PPL Corp.		2,268		64,593
Progress Energy, Inc.		1,701		65,131
Public Service Enterprise Group, Inc.		3,105		92,281
SCANA Corp.		675		24,334
Sempra Energy		1,377		67,707
Southern Co.		4,887		155,260
TECO Energy, Inc.		1,217		18,657
UGI Corp.		650		16,283
Vectren Corp.		488		11,346
Westar Energy, Inc.		648		13,867
Wisconsin Energy Corp.		729		35,305
Xcel Energy, Inc.		2,781		57,873

				2,186,730

Total Common Stock (Cost $33,979,381)				33,888,878




Other Investment Company 0.1% of net assets


State Street Institutional Liquid Reserves Fund		21,560		21,560

Total Other Investment Company (Cost $21,560)				21,560



End of Investments

At 02/28/10, the tax basis cost of the fund’s investments was $34,001,835 and the unrealized appreciation and depreciation were $620,946 and ($712,343), respectively, with a net unrealized depreciation of ($91,397).


*		Non-income producing security.

58 See financial notes

Schwab U.S. Large-Cap Value ETF

Statement of

Assets and Liabilities

As of February 28, 2010 (unaudited)




Assets
Investments, at value (cost $34,000,941)		$33,910,438
Receivables:
Investments sold		129,175
Dividends		100,404
Interest	+	3


Total assets		34,140,020


Liabilities
Payables:
Investments bought		128,726
Investment adviser and administrator fees	+	457


Total liabilities		129,183


Net Assets
Total assets		34,140,020
Total liabilities	—	129,183


Net assets		$34,010,837
Net Assets by Source
Capital received from investors		33,983,796
Net investment income not yet distributed		122,797
Net realized capital losses		(5,253	)
Net unrealized capital losses		(90,503	)

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$34,010,837

1,350,001

$25.19

See financial notes 59

Schwab U.S. Large-Cap Value ETF

Statement of

Operations

For December 9, 2009* through February 28, 2010 (unaudited)




Investment Income
Dividends (net of foreign withholding tax of $41)		$153,629
Interest	+	9


Total investment income		153,638


Expenses
Investment adviser and administrator fees		6,841


Total expenses		6,841


Net investment income		146,797


Realized and Unrealized Gains (Losses)
Net realized losses on investments		(5,253	)
Net unrealized losses on investments	+	(90,503	)


Net realized and unrealized losses		(95,756	)


Net increase in net assets resulting from operations		$51,041


*	Commencement of operations.

60 See financial notes

Schwab U.S. Large-Cap Value ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on December 9, 2009, it has no prior report period.

Figures for the current period are unaudited.




Operations


		*12/9/09-02/28/10**
Net investment income		$146,797
Net realized losses		(5,253)
Net unrealized losses	+	(90,503)


Net Increase in net assets resulting from operations		$51,041


Distributions to Shareholders
Distributions from net investment income		$24,000




Transactions in Fund Shares


		*12/9/09-02/28/10**
		SHARES		VALUE
Shares Sold			1,350,001		$33,983,796
Shares Redeemed	+		—		—


Net transactions in fund shares			1,350,001		$33,983,796




Shares Outstanding and Net Assets


		*12/9/09-02/28/10**
		SHARES		NET ASSETS
Beginning of period			—		$—
Total increase	+		1,350,001		34,010,837


End of period			1,350,001		$34,010,837



Net investment income not yet distributed					$122,797


*	Commencement of operations.

See financial notes 61

Schwab U.S. Small-Cap ETF ^tm

Financial Statements

Financial Highlights


	10/30/09¹–
	2/28/10*


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.09
Net realized and unrealized gains (losses)		2.39

Total from investment operations		2.48
Less distributions:
Distributions from net investment income		(0.06	)

Net asset value at end of period		27.42

Total return (%)		9.92	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.15	³
Gross operating expenses		0.15	³
Net investment income (loss)		1.22	³
Portfolio turnover rate⁴		3	²
Net assets, end of period ($ x 1,000)		94,594

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Portfolio turnover rate excludes securities received or delivered from processing of in kind creations or redemptions.

62 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings as of February 28, 2010 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	99	.9%	Common Stock		91,585,968		94,469,357
	0	.1%	Other Investment Company		90,215		90,215
		—%	Rights		—		612


	100	.0%	Total Investments		91,676,183		94,560,184
	0	.0%	Other Assets and Liabilities, Net				33,842


	100	.0%	Net Assets				94,594,026


	Number		Value
Security	of Shares		($)

Common Stock 99.9% of net assets

Automobiles & Components 1.3%
ArvinMeritor, Inc. *		5,313		61,950
Cooper Tire & Rubber Co.		4,347		76,246
Dana Holding Corp. *		10,032		114,064
Drew Industries, Inc. *		1,340		31,048
Exide Technologies *		3,726		21,425
Federal-Mogul Corp. *		1,754		33,905
Fuel Systems Solutions, Inc. *		966		26,942
Gentex Corp.		9,896		192,081
Lear Corp. *		2,442		169,157
Raser Technologies, Inc. *		4,374		4,636
Superior Industries International, Inc.		1,587		22,932
Tenneco, Inc. *		4,238		85,438
Thor Industries, Inc.		2,760		93,647
TRW Automotive Holdings Corp. *		5,037		135,344
WABCO Holdings, Inc.		4,583		122,549
Winnebago Industries, Inc. *		2,070		24,178

				1,215,542

Banks 7.4%
1st Source Corp.		995		14,855
Arrow Financial Corp.		759		19,203
Associated Banc-Corp		12,006		154,997
Astoria Financial Corp.		6,348		84,238
BancFirst Corp.		512		20,429
BancorpSouth, Inc.		5,618		109,382
Bank Mutual Corp.		3,427		22,241
Bank of Hawaii Corp.		3,450		145,624
Bank of the Ozarks, Inc.		897		27,556
BankFinancial Corp.		1,380		13,248
Beneficial Mutual Bancorp, Inc. *		2,622		24,621
Berkshire Hills Bancorp, Inc.		995		17,791
Boston Private Financial Holdings, Inc.		4,859		33,284
Brookline Bancorp, Inc.		4,169		42,857
Camden National Corp.		552		16,654
Capital City Bank Group, Inc.		897		11,553
CapitalSource, Inc.		18,728		103,004
Capitol Bancorp Ltd.		1,380		3,064
Cathay General Bancorp		3,795		36,925
Chemical Financial Corp.		1,587		32,692
City Holding Co.		1,133		36,358
Clifton Savings Bancorp, Inc.		759		6,755
CoBiz Financial, Inc.		2,581		15,254
Columbia Banking System, Inc.		1,892		38,710
Community Bank System, Inc.		2,346		52,574
Community Trust Bancorp, Inc.		966		24,643
CVB Financial Corp.		6,831		63,528
Danvers Bancorp, Inc.		1,340		18,988
Dime Community Bancshares		2,168		26,319
Doral Financial Corp. *		897		2,808
East West Bancorp, Inc.		6,239		109,307
ESSA Bancorp, Inc.		897		10,495
F.N.B. Corp.		8,171		62,100
Fannie Mae *		79,557		78,761
First Bancorp		1,173		16,563
First BanCorp Puerto Rico		5,549		11,764
First Busey Corp.		3,754		14,115
First Citizens BancShares, Inc., Class A		414		75,758
First Commonwealth Financial Corp.		5,618		31,517
First Community Bancshares, Inc.		1,133		13,029
First Financial Bancorp		3,686		68,412
First Financial Bankshares, Inc.		1,478		77,373
First Financial Corp.		788		20,709
First Financial Holdings, Inc.		1,173		14,029
First Financial Northwest, Inc.		1,035		6,769
First Merchants Corp.		1,478		8,558
First Midwest Bancorp, Inc.		4,716		64,090
First Niagara Financial Group, Inc.		13,179		185,033
FirstMerit Corp.		6,170		130,434
Flagstar Bancorp, Inc. *		2,484		1,602
Flushing Financial Corp.		2,099		26,636
Freddie Mac *		46,506		54,877
Fulton Financial Corp.		12,656		121,751
Glacier Bancorp, Inc.		4,445		64,452
Great Southern Bancorp, Inc.		716		16,361
Guaranty Bancorp *		3,588		4,880
Hampton Roads Bankshares, Inc.		1,519		2,734
Hancock Holding Co.		2,237		90,196
Harleysville National Corp.		3,065		20,260
Heartland Financial USA, Inc.		995		14,447
Home Bancshares, Inc.		1,547		37,561
Hudson Valley Holding Corp.		840		20,370
Huntington Bancshares, Inc.		50,398		242,414
IBERIABANK Corp.		1,478		84,409
Independent Bank Corp.		1,478		36,329
International Bancshares Corp.		3,824		81,069
Investors Bancorp, Inc. *		3,341		42,999
Kearny Financial Corp.		1,478		14,824
Lakeland Financial Corp.		1,064		18,737
Marshall & Ilsley Corp.		36,313		257,096
MB Financial, Inc.		3,479		70,798
Meridian Interstate Bancorp, Inc. *		759		7,590
MGIC Investment Corp. *		8,971		68,718
Nara Bancorp, Inc. *		2,346		20,715
National Penn Bancshares, Inc.		9,068		62,478

See financial notes 63

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
NBT Bancorp, Inc.		2,444		51,911
NewAlliance Bancshares, Inc.		7,176		85,968
Northfield Bancorp, Inc.		1,449		20,300
Northwest Bancshares, Inc.		3,255		38,442
Ocwen Financial Corp. *		5,106		55,196
Old National Bancorp		6,239		70,875
Oriental Financial Group, Inc.		1,754		19,364
Oritani Financial Corp.		857		13,575
Orrstown Financial Services, Inc.		414		14,581
Pacific Capital Bancorp		3,864		4,753
PacWest Bancorp		1,823		37,007
Park National Corp.		856		45,668
Pinnacle Financial Partners, Inc. *		2,346		35,448
Popular, Inc.		46,025		88,828
PrivateBancorp, Inc.		5,134		66,742
Prosperity Bancshares, Inc.		3,312		138,541
Provident Financial Services, Inc.		4,071		44,618
Provident New York Bancorp		2,806		24,468
Radian Group, Inc.		5,865		57,594
Renasant Corp.		1,478		22,554
Republic Bancorp, Inc., Class A		719		12,130
Rockville Financial, Inc.		581		6,182
Roma Financial Corp.		552		6,745
S&T Bancorp, Inc.		1,961		34,769
S.Y. Bancorp, Inc.		897		19,689
Sandy Spring Bancorp, Inc.		1,133		16,021
Santander BanCorp *		394		4,811
SCBT Financial Corp.		923		33,560
Signature Bank *		2,898		107,893
Simmons First National Corp., Class A		1,064		28,260
Southside Bancshares, Inc.		1,064		21,312
StellarOne Corp.		1,656		19,590
Sterling Bancorp		1,357		11,114
Sterling Bancshares, Inc.		5,894		27,820
Sterling Financial Corp. *		4,209		3,015
Suffolk Bancorp		690		19,651
Sun Bancorp, Inc. *		1,242		4,335
Susquehanna Bancshares, Inc.		6,170		51,519
SVB Financial Group *		2,912		129,759
Synovus Financial Corp.		30,498		86,919
TCF Financial Corp.		8,720		125,917
Texas Capital Bancshares, Inc. *		2,582		43,507
The PMI Group, Inc. *		5,865		16,422
The South Financial Group, Inc.		12,241		6,977
Tompkins Financial Corp.		601		21,552
TowneBank		1,823		22,368
TriCo Bancshares		1,035		18,920
TrustCo Bank Corp.		5,497		33,257
Trustmark Corp.		3,962		90,334
UMB Financial Corp.		2,415		92,519
Umpqua Holdings Corp.		6,239		77,863
Union First Market Bankshares Corp.		1,311		16,401
United Bankshares, Inc.		3,065		75,460
United Community Banks, Inc. *		6,308		26,178
United Financial Bancorp, Inc.		1,064		13,928
Univest Corp. of Pennsylvania		1,173		20,375
Valley National Bancorp		10,212		147,053
ViewPoint Financial Group		828		12,097
Washington Federal, Inc.		8,102		157,908
Washington Trust Bancorp, Inc.		1,035		17,626
Waterstone Financial, Inc. *		1,035		2,505
Webster Financial Corp.		5,135		82,160
WesBanco, Inc.		1,754		26,573
Westamerica Bancorp		2,099		115,193
Western Alliance Bancorp *		4,830		27,821
Westfield Financial, Inc.		2,070		17,160
Whitney Holding Corp.		6,624		85,118
Wilmington Trust Corp.		4,968		71,639
Wintrust Financial Corp.		1,751		59,604
WSFS Financial Corp.		512		15,713
Zions Bancorp		9,965		184,751

				7,009,700

Capital Goods 9.8%
A.O. Smith Corp.		1,794		81,268
A123 Systems, Inc. *		2,001		32,956
AAON, Inc.		995		20,935
AAR CORP. *		2,760		62,597
Aceto Corp.		1,794		9,383
Actuant Corp., Class A		4,859		87,996
Acuity Brands, Inc.		3,105		121,033
Advanced Battery Technologies, Inc. *		3,726		14,494
Aerovironment, Inc. *		1,035		25,099
Aircastle Ltd.		3,174		30,883
Albany International Corp., Class A		1,863		35,993
Altra Holdings, Inc. *		1,892		21,853
American Railcar Industries, Inc.		690		6,520
American Science & Engineering, Inc.		621		46,146
American Superconductor Corp. *		2,898		81,144
American Woodmark Corp.		690		12,979
Ameron International Corp.		621		42,768
Ampco-Pittsburgh Corp.		581		14,967
Apogee Enterprises, Inc.		2,001		28,594
Applied Industrial Technologies, Inc.		2,789		62,864
Applied Signal Technology, Inc.		926		17,103
Argon ST, Inc. *		966		23,764
Armstrong World Industries, Inc. *		1,271		46,798
Astec Industries, Inc. *		1,202		29,197
AZZ, Inc.		897		28,175
Badger Meter, Inc.		1,064		38,229
Baldor Electric Co.		3,085		96,931
Barnes Group, Inc.		3,134		50,332
BE Aerospace, Inc. *		6,831		176,923
Beacon Roofing Supply, Inc. *		3,243		56,428
Belden, Inc.		3,381		71,610
Blount International, Inc. *		2,789		30,763
Brady Corp., Class A		3,410		95,548
Briggs & Stratton Corp.		3,617		63,334
Broadwind Energy, Inc. *		3,358		16,622
Bucyrus International, Inc.		5,382		336,698
Builders FirstSource, Inc. *		3,280		9,840
Carlisle Cos., Inc.		4,416		151,469
Cascade Corp.		621		17,152
Ceradyne, Inc. *		1,823		41,090
Chart Industries, Inc. *		2,070		42,145
CIRCOR International, Inc.		1,202		37,154
CLARCOR, Inc.		3,657		119,767
Colfax Corp. *		1,794		20,326
Columbus McKinnon Corp. *		1,340		19,283
Comfort Systems USA, Inc.		2,789		32,687
Crane Co.		3,617		114,550
Cubic Corp.		1,173		40,457
Curtiss-Wright Corp.		3,272		104,868

64 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
DigitalGlobe, Inc. *		2,167		51,705
Ducommun, Inc.		719		12,575
Dycom Industries, Inc. *		2,789		25,185
Dynamic Materials Corp.		897		16,254
DynCorp International, Inc., Class A *		1,794		20,093
EMCOR Group, Inc. *		4,692		108,010
Encore Wire Corp.		1,406		28,261
Ener1, Inc. *		3,864		16,345
Energy Conversion Devices, Inc. *		3,272		23,558
Energy Recovery, Inc. *		2,375		15,224
EnerSys *		2,967		67,618
EnPro Industries, Inc. *		1,449		40,108
ESCO Technologies, Inc.		1,863		60,939
Esterline Technologies Corp. *		2,099		86,374
Evergreen Solar, Inc. *		13,691		15,334
Federal Signal Corp.		3,565		27,344
Force Protection, Inc. *		4,968		26,628
Franklin Electric Co., Inc.		1,340		38,217
FreightCar America, Inc.		897		18,989
FuelCell Energy, Inc. *		5,549		15,593
Furmanite Corp. *		2,582		9,347
Gardner Denver, Inc. *		3,726		162,491
GATX Corp.		2,898		77,232
GenCorp, Inc. *		3,933		16,991
Generac Holdings, Inc. *		1,311		17,607
General Cable Corp. *		3,726		91,026
GeoEye, Inc. *		1,311		31,228
Gibraltar Industries, Inc. *		1,932		22,566
Graco, Inc.		4,347		119,151
GrafTech International Ltd. *		8,625		107,726
Graham Corp.		719		11,605
Granite Construction, Inc.		2,444		67,528
Great Lakes Dredge & Dock Co.		3,134		14,197
Griffon Corp. *		3,568		44,172
GT Solar International, Inc. *		2,139		12,727
H&E Equipment Services, Inc. *		2,001		19,450
HEICO Corp., Class A		1,380		51,198
Hexcel Corp. *		6,929		76,358
IDEX Corp.		5,796		179,676
II-VI, Inc. *		1,794		50,304
Insituform Technologies, Inc., Class A *		2,760		67,786
Interline Brands, Inc. *		2,306		40,816
John Bean Technologies Corp.		2,001		32,716
K-Tron International, Inc. *		207		30,938
Kaman Corp.		1,823		43,661
Kaydon Corp.		2,415		78,487
Kennametal, Inc.		5,796		150,986
L.B. Foster Co., Class A *		759		23,081
Ladish Co., Inc. *		1,104		18,569
Lawson Products, Inc.		345		6,117
Layne Christensen Co. *		1,380		38,060
Lennox International, Inc.		3,726		157,237
Lindsay Corp.		828		30,479
MasTec, Inc. *		3,519		46,592
Michael Baker Corp. *		581		19,661
Moog, Inc., Class A *		2,927		99,401
Mueller Industries, Inc.		2,651		59,329
Mueller Water Products, Inc., Class A		10,723		49,647
MYR Group, Inc. *		1,311		20,727
NACCO Industries, Inc., Class A		374		17,503
Nordson Corp.		2,208		145,286
Northwest Pipe Co. *		650		15,359
Orbital Sciences Corp. *		4,100		75,645
Orion Marine Group, Inc. *		1,932		33,926
Oshkosh Corp. *		6,279		239,355
Otter Tail Corp.		2,277		45,517
Pike Electric Corp. *		1,242		10,458
Plug Power, Inc. *		5,548		2,940
Polypore International, Inc. *		1,682		25,180
Powell Industries, Inc. *		552		15,898
Power-One, Inc. *		5,894		22,338
Primoris Services Corp.		759		6,216
Quanex Building Products Corp.		2,740		42,689
Raven Industries, Inc.		1,202		35,219
RBC Bearings, Inc. *		1,547		39,185
Regal-Beloit Corp.		2,651		149,569
Robbins & Myers, Inc.		1,863		45,029
RSC Holdings, Inc. *		3,479		24,527
Rush Enterprises, Inc., Class A *		2,346		25,642
Sauer-Danfoss, Inc. *		828		9,961
Seaboard Corp.		10		12,710
Simpson Manufacturing Co., Inc.		2,720		66,858
Snap-On, Inc.		4,140		174,791
Standex International Corp.		897		22,335
Stanley, Inc. *		1,271		32,042
Sterling Construction Co., Inc. *		1,104		21,671
Sun Hydraulics Corp.		857		20,731
TAL International Group, Inc.		857		15,623
Taser International, Inc. *		4,445		33,604
Tecumseh Products Co., Class A *		1,202		15,157
Teledyne Technologies, Inc. *		2,582		97,264
Tennant Co.		1,173		27,988
Terex Corp. *		7,797		151,808
Textainer Group Holdings Ltd.		1,311		27,072
The Gorman-Rupp Co.		1,035		24,322
The Greenbrier Cos., Inc. *		1,133		10,412
The Manitowoc Co., Inc.		9,364		109,184
The Middleby Corp. *		1,311		60,817
The Timken Co.		5,589		146,599
The Toro Co.		2,484		109,346
Thomas & Betts Corp. *		3,864		139,490
Titan International, Inc.		2,599		21,442
Titan Machinery, Inc. *		1,035		12,327
TransDigm Group, Inc.		2,691		135,142
Tredegar Corp.		1,754		29,379
Trex Co., Inc. *		1,035		20,690
Trinity Industries, Inc.		5,753		96,823
Triumph Group, Inc.		1,173		61,395
Tutor Perini Corp. *		2,001		39,560
United Rentals, Inc. *		4,347		32,820
Universal Forest Products, Inc.		1,380		48,631
USG Corp. *		4,899		66,038
Valence Technology, Inc. *		5,451		5,069
Valmont Industries, Inc.		1,518		108,082
Vicor Corp. *		1,518		14,436
Wabtec Corp.		3,519		134,215
Watsco, Inc.		2,030		117,415
Watts Water Technologies, Inc., Class A		2,099		61,207
WESCO International, Inc. *		2,996		86,554
Woodward Governor Co.		4,166		119,939

				9,239,369

See financial notes 65

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Commercial & Professional Services 2.7%
ABM Industries, Inc.		3,105		63,590
Acco Brands Corp. *		3,864		27,705
Administaff, Inc.		1,616		29,120
American Reprographics Co. *		2,720		19,475
APAC Customer Services, Inc. *		2,168		11,230
ATC Technology Corp. *		1,409		31,576
Bowne & Co., Inc.		2,858		31,810
CBIZ, Inc. *		3,521		21,936
CDI Corp.		966		13,804
Cenveo, Inc. *		4,100		30,586
Clean Harbors, Inc. *		1,616		91,853
Consolidated Graphics, Inc. *		690		30,733
Cornell Cos., Inc. *		857		15,974
CoStar Group, Inc. *		1,449		57,018
Courier Corp.		785		12,081
CRA International, Inc. *		759		20,189
Deluxe Corp.		3,686		66,164
EnergySolutions, Inc.		5,618		34,157
EnerNOC, Inc. *		1,242		32,838
Ennis, Inc.		1,863		28,634
Exponent, Inc. *		966		25,725
Fuel Tech, Inc. *		1,242		8,135
G&K Services, Inc., Class A		1,340		33,460
Healthcare Services Group, Inc.		2,829		62,125
Heidrick & Struggles International, Inc.		1,202		32,418
Herman Miller, Inc.		4,051		73,728
Hill International, Inc. *		1,892		9,971
HNI Corp.		2,651		63,014
Huron Consulting Group, Inc. *		1,547		36,633
ICF International, Inc. *		897		21,017
Innerworkings, Inc. *		2,306		13,075
Interface, Inc. Class A		3,933		33,824
KAR Auction Services, Inc. *		1,681		22,525
Kelly Services, Inc., Class A *		2,001		31,476
Kforce, Inc. *		2,582		34,392
Kimball International, Inc., Class B		1,823		12,050
Knoll, Inc.		3,450		41,469
Korn/Ferry International *		3,312		56,569
M&F Worldwide Corp. *		857		27,758
McGrath Rentcorp		1,685		40,305
Metalico, Inc. *		2,691		14,774
Mine Safety Appliances Co.		2,277		57,813
Mistras Group, Inc. *		650		8,866
Mobile Mini, Inc. *		2,533		34,423
Monster Worldwide, Inc. *		9,108		127,057
Navigant Consulting, Inc. *		3,617		42,066
Odyssey Marine Exploration, Inc. *		4,169		5,295
Resources Connection, Inc. *		3,272		55,755
RINO International Corp. *		374		7,559
Rollins, Inc.		3,726		79,178
Schawk, Inc.		857		11,235
School Specialty, Inc. *		1,173		25,044
Spherion Corp. *		3,657		28,781
Standard Parking Corp. *		512		8,407
Steelcase, Inc., Class A		4,514		29,657
Sykes Enterprises, Inc. *		2,602		61,954
Team, Inc. *		1,340		24,294
Tetra Tech, Inc. *		4,307		90,102
The Advisory Board Co. *		1,133		35,984
The Brink’s Co.		3,410		86,887
The Corporate Executive Board Co.		2,444		55,919
The Geo Group, Inc. *		3,706		73,268
The Standard Register Co.		1,104		6,072
TrueBlue, Inc. *		3,105		41,203
United Stationers, Inc. *		1,725		98,515
US Ecology, Inc.		1,185		17,645
US Ecology, Inc.		17		253
Viad Corp.		1,449		27,690
Volt Information Sciences, Inc. *		759		8,083

				2,513,921

Consumer Durables & Apparel 4.1%
American Apparel, Inc. *		2,415		6,786
American Greetings Corp., Class A		2,651		50,555
Blyth, Inc.		414		11,940
Brookfield Homes Corp. *		690		5,251
Brunswick Corp.		6,279		72,460
Callaway Golf Co.		4,623		36,660
Carter’s, Inc. *		4,028		115,442
Columbia Sportswear Co.		1,064		48,774
Crocs, Inc. *		5,727		40,375
CSS Industries, Inc.		552		9,318
Deckers Outdoor Corp. *		966		116,113
Eastman Kodak Co. *		18,285		108,613
Ethan Allen Interiors, Inc.		2,001		31,936
FGX International Holdings Ltd. *		1,064		20,993
Fossil, Inc. *		3,381		122,561
Furniture Brands International, Inc. *		2,444		13,393
Hanesbrands, Inc. *		6,762		175,339
Harman International Industries, Inc.		4,968		214,319
Helen of Troy Ltd. *		2,030		49,065
Hovnanian Enterprises, Inc., Class A *		3,450		13,420
Iconix Brand Group, Inc. *		5,175		67,430
iRobot Corp. *		1,409		22,812
JAKKS Pacific, Inc. *		1,961		24,218
Jarden Corp.		6,308		202,234
Jones Apparel Group, Inc.		6,141		103,537
K-Swiss, Inc., Class A *		1,892		17,671
KB HOME		5,500		89,540
Kenneth Cole Productions, Inc., Class A *		552		6,469
La-Z-Boy, Inc. *		3,726		46,985
Leapfrog Enterprises, Inc. *		2,720		14,824
Lennar Corp., Class A		11,434		187,632
Liz Claiborne, Inc. *		6,900		47,679
M.D.C Holdings, Inc.		2,622		89,725
M/I Homes, Inc. *		1,311		16,846
Maidenform Brands, Inc. *		1,380		23,764
Marine Products Corp.		1,035		6,966
Meritage Homes Corp. *		2,099		44,898
Movado Group, Inc. *		1,242		15,898
National Presto Industries, Inc.		345		43,525
Oxford Industries, Inc.		995		19,363
Phillips-Van Heusen Corp.		3,657		159,153
Polaris Industries, Inc.		2,346		107,306
Pool Corp.		3,450		68,931
Quiksilver, Inc. *		9,522		24,472
RC2 Corp. *		1,518		21,419
Sealy Corp. *		3,174		10,982
Skechers U.S.A., Inc., Class A *		2,346		72,093
Skyline Corp.		483		8,235

66 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Smith & Wesson Holding Corp. *		4,278		18,267
Standard Pacific Corp. *		7,245		30,574
Steven Madden Ltd. *		1,173		49,278
Tempur-Pedic International, Inc. *		5,106		145,010
The Ryland Group, Inc.		3,036		68,887
The Timberland Co., Class A *		3,312		61,239
The Warnaco Group, Inc. *		3,312		138,243
True Religion Apparel, Inc. *		1,863		45,755
Tupperware Brands Corp.		4,485		209,584
Under Armour, Inc., Class A *		2,691		70,127
UniFirst Corp.		966		50,773
Volcom, Inc. *		1,202		19,400
Weyco Group, Inc.		581		13,375
Wolverine World Wide, Inc.		3,519		97,019

				3,845,451

Consumer Services 3.7%
AFC Enterprises, Inc. *		1,794		14,531
Ambassadors Group, Inc.		1,380		15,580
American Public Education, Inc. *		1,311		56,714
Ameristar Casinos, Inc.		1,725		26,030
Bally Technologies, Inc. *		3,933		162,866
BJ’s Restaurants, Inc. *		1,478		31,629
Bob Evans Farms, Inc.		2,208		62,950
Boyd Gaming Corp. *		4,071		31,102
Bridgepoint Education, Inc. *		1,380		23,294
Brink’s Home Security Holdings, Inc. *		3,312		138,607
Brinker International, Inc.		7,314		132,457
Buffalo Wild Wings, Inc. *		1,311		57,619
California Pizza Kitchen, Inc. *		1,754		27,257
Cambium Learning Group, Inc. *		1,408		5,210
Capella Education Co. *		1,064		88,387
CEC Entertainment, Inc. *		1,616		56,641
Choice Hotels International, Inc.		2,165		71,532
Churchill Downs, Inc.		759		27,005
CKE Restaurants, Inc.		3,657		41,580
Coinstar, Inc. *		2,096		62,209
Corinthian Colleges, Inc. *		5,727		92,892
Cracker Barrel Old Country Store, Inc.		1,587		69,320
Denny’s Corp. *		6,693		18,406
DineEquity, Inc. *		1,104		32,391
Domino’s Pizza, Inc. *		3,065		38,282
Gaylord Entertainment Co. *		2,553		57,468
Grand Canyon Education, Inc. *		1,173		25,513
Hillenbrand, Inc.		4,445		89,122
International Speedway Corp., Class A		2,030		54,221
Interval Leisure Group, Inc. *		2,898		41,615
Isle of Capri Casinos, Inc. *		1,242		9,290
Jack in the Box, Inc. *		4,100		86,592
Jackson Hewitt Tax Service, Inc. *		1,823		4,448
K12, Inc. *		1,547		31,141
Krispy Kreme Doughnuts, Inc. *		4,140	��	14,531
Landry’s Restaurants, Inc. *		512		10,440
Life Time Fitness, Inc. *		2,967		75,243
Lincoln Educational Services Corp. *		621		13,848
Matthews International Corp., Class A		2,168		72,671
Morgans Hotel Group Co. *		1,794		7,607
Orient-Express Hotels Ltd., Class A *		6,397		73,118
P.F. Chang’s China Bistro, Inc. *		1,547		65,655
Panera Bread Co., Class A *		2,237		162,831
Papa John’s International, Inc. *		1,587		38,739
Peet’s Coffee & Tea, Inc. *		926		33,669
Pinnacle Entertainment, Inc. *		4,278		30,930
Pre-Paid Legal Services, Inc. *		512		21,320
Red Robin Gourmet Burgers, Inc. *		1,061		21,040
Regis Corp.		4,100		67,773
Ruby Tuesday, Inc. *		4,238		34,285
Scientific Games Corp., Class A *		4,968		83,910
Service Corp. International		18,038		145,386
Shuffle Master, Inc. *		3,933		32,329
Sonic Corp. *		4,416		37,492
Sotheby’s		4,830		117,369
Speedway Motorsports, Inc.		966		16,886
Steiner Leisure Ltd. *		966		41,509
Stewart Enterprises, Inc., Class A		6,032		29,557
Texas Roadhouse, Inc. *		3,752		50,389
The Cheesecake Factory, Inc. *		4,097		96,894
The Marcus Corp.		1,478		18,046
The Steak N Shake Co. *		82		28,051
Universal Technical Institute, Inc. *		1,518		38,345
Vail Resorts, Inc. *		2,582		92,978
WMS Industries, Inc. *		4,237		160,709

				3,517,451

Diversified Financials 2.6%
Advance America Cash Advance Centers, Inc.		3,548		22,246
AmeriCredit Corp. *		4,859		108,113
Artio Global Investors, Inc.		1,794		43,738
Asset Acceptance Capital Corp. *		759		4,304
BGC Partners, Inc., Class A		2,829		14,032
Broadpoint Gleacher Securities, Inc. *		4,831		19,372
Calamos Asset Management, Inc., Class A		1,380		18,409
Cardtronics, Inc. *		1,035		10,226
Cash America International, Inc.		2,139		81,988
Cohen & Steers, Inc.		1,449		31,530
CompuCredit Holdings Corp. *		2,208		7,640
Credit Acceptance Corp. *		414		16,630
Dollar Financial Corp. *		1,705		38,260
Duff & Phelps Corp., Class A		1,682		28,056
ETRADE Financial Corp.		134,461		216,482
Encore Capital Group, Inc. *		966		17,427
Evercore Partners, Inc., Class A		1,104		33,241
EZCORP, Inc., Class A *		3,243		63,984
FBR Capital Markets Corp. *		2,967		16,051
First Cash Financial Services, Inc. *		1,932		40,997
GAMCO Investors, Inc., Class A		276		12,009
GFI Group, Inc.		4,692		25,853
GLG Partners, Inc. *		12,558		34,911
Greenhill & Co., Inc.		1,892		135,183
Interactive Brokers Group, Inc., Class A *		2,898		49,933
Investment Technology Group, Inc. *		3,174		54,021
Janus Capital Group, Inc.		12,903		161,287
KBW, Inc. *		2,484		59,020
Knight Capital Group, Inc., Class A *		6,693		108,025
LaBranche & Co., Inc. *		3,588		16,828
Life Partners Holdings, Inc.		443		9,117
MarketAxess Holdings, Inc.		1,932		28,903
MF Global Holdings Ltd. *		7,176		49,658
Nelnet, Inc., Class A		2,030		31,912

See financial notes 67

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
NewStar Financial, Inc. *		1,932		12,094
optionsXpress Holdings, Inc.		3,243		51,272
Penson Worldwide, Inc. *		1,449		13,635
PHH Corp. *		3,913		72,430
PICO Holdings, Inc. *		1,409		47,962
Piper Jaffray Cos., Inc. *		1,380		59,740
Portfolio Recovery Associates, Inc. *		1,104		58,876
Pzena Investment Management, Inc., Class A *		414		2,484
Riskmetrics Group, Inc. *		2,208		41,135
Stifel Financial Corp. *		2,168		118,590
SWS Group, Inc.		2,306		27,787
The First Marblehead Corp. *		4,692		11,073
The Student Loan Corp.		276		9,975
Thomas Weisel Partners Group, Inc. *		1,518		6,118
TradeStation Group, Inc. *		2,277		15,711
Waddell & Reed Financial, Inc., Class A		6,141		201,916
Westwood Holdings Group, Inc.		414		16,034
World Acceptance Corp. *		1,035		43,253

				2,419,471

Energy 6.2%
Allis-Chalmers Energy, Inc. *		2,898		10,954
Alon USA Energy, Inc.		828		5,796
Apco Oil & Gas International, Inc.		690		15,235
Arena Resources, Inc. *		2,761		114,388
Atlas Energy, Inc. *		5,617		183,339
ATP Oil & Gas Corp. *		3,036		54,830
Atwood Oceanics, Inc. *		4,003		133,940
Basic Energy Services, Inc. *		1,725		16,301
Berry Petroleum Co., Class A		3,369		90,289
Bill Barrett Corp. *		2,415		81,893
BP Prudhoe Bay Royalty Trust		1,510		134,964
BPZ Resources, Inc. *		7,453		58,282
Brigham Exploration Co. *		7,135		117,157
Bristow Group, Inc. *		2,444		88,497
Bronco Drilling Co., Inc. *		1,933		9,356
Cal Dive International, Inc. *		6,652		46,897
CARBO Ceramics, Inc.		1,449		88,433
Carrizo Oil & Gas, Inc. *		2,001		47,884
Cheniere Energy, Inc. *		3,451		10,284
Clayton Williams Energy, Inc. *		621		23,157
Clean Energy Fuels Corp. *		2,760		49,790
Cloud Peak Energy, Inc. *		2,301		34,998
Complete Production Services, Inc. *		4,416		61,647
Comstock Resources, Inc. *		3,312		114,330
Contango Oil & Gas Co. *		966		49,807
Crosstex Energy, Inc. *		3,312		25,602
CVR Energy, Inc. *		3,934		32,338
Dawson Geophysical Co. *		552		15,771
Delek US Holdings, Inc.		1,105		8,033
Delta Petroleum Corp. *		13,113		18,358
DHT Maritime, Inc.		3,452		12,151
Dresser-Rand Group, Inc. *		5,916		182,864
Dril-Quip, Inc. *		2,188		119,727
Encore Acquisition Co. *		4,002		198,219
ENGlobal Corp. *		1,312		3,765
Exterran Holdings, Inc. *		4,485		102,034
Frontier Oil Corp.		7,453		92,343
Gastar Exploration Ltd. *		3,037		15,003
General Maritime Corp.		3,728		26,953
Global Industries Ltd. *		7,383		49,835
GMX Resources, Inc. *		2,030		18,676
Goodrich Petroleum Corp. *		1,932		37,230
Gulf Island Fabrication, Inc.		897		17,895
Gulfmark Offshore, Inc., Class A *		1,863		45,830
Gulfport Energy Corp. *		1,932		17,581
Harvest Natural Resources, Inc. *		2,347		12,533
Helix Energy Solutions Group, Inc. *		6,831		78,625
Hercules Offshore, Inc. *		8,211		30,052
Holly Corp.		3,036		77,965
Hornbeck Offshore Services, Inc. *		1,725		32,568
Hugoton Royalty Trust		2,898		51,613
International Coal Group, Inc. *		6,695		29,190
ION Geophysical Corp. *		6,487		29,710
Isramco, Inc. *		69		3,867
James River Coal Co. *		2,001		31,836
Key Energy Services, Inc. *		8,902		90,266
Lufkin Industries, Inc.		1,035		75,607
Mariner Energy, Inc. *		7,315		109,871
Massey Energy Co.		6,141		264,493
Matrix Service Co. *		1,863		19,934
McMoRan Exploration Co. *		5,659		97,788
Newpark Resources, Inc. *		6,350		32,830
Oil States International, Inc. *		3,519		151,387
Overseas Shipholding Group, Inc.		1,725		76,745
Parker Drilling Co. *		8,281		42,482
Patriot Coal Corp. *		5,520		91,963
Penn Virginia Corp.		3,243		82,048
Petroleum Development Corp. *		1,311		30,822
PetroQuest Energy, Inc. *		4,049		21,703
PHI, Inc. *		966		18,856
Pioneer Drilling Co. *		3,312		23,648
Rentech, Inc. *		13,874		14,845
Resolute Energy Corp. *		3,174		33,803
Rosetta Resources, Inc. *		3,795		71,080
RPC, Inc.		2,347		29,009
SandRidge Energy, Inc. *		13,066		103,744
SEACOR Holdings, Inc. *		1,380		105,404
Seahawk Drilling, Inc. *		759		15,597
Ship Finance International Ltd.		2,967		47,175
Southern Union Co.		7,522		180,077
St. Mary Land & Exploration Co.		4,485		146,121
Stone Energy Corp. *		3,036		51,764
Superior Energy Services, Inc. *		5,589		115,525
Superior Well Services, Inc. *		2,027		36,263
Swift Energy Co. *		2,622		78,109
T-3 Energy Services, Inc. *		966		22,933
Teekay Corp.		3,036		76,325
Tesco Corp. *		2,277		31,036
TETRA Technologies, Inc. *		5,451		54,946
Unit Corp. *		3,381		146,972
USEC, Inc. *		8,075		35,207
VAALCO Energy, Inc.		4,073		17,392
Venoco, Inc. *		1,380		15,842
W&T Offshore, Inc.		2,671		23,532
Warren Resources, Inc. *		5,037		11,787
Western Refining, Inc. *		3,796		16,475
World Fuel Services Corp.		4,209		111,202

				5,883,223

68 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Food & Staples Retailing 0.8%
Arden Group, Inc., Class A		98		9,947
BJ’s Wholesale Club, Inc. *		3,933		142,257
Casey’s General Stores, Inc.		3,617		109,993
Ingles Markets, Inc., Class A		857		12,075
Nash Finch Co.		926		32,660
PriceSmart, Inc.		995		21,154
Rite Aid Corp. *		44,091		67,018
Ruddick Corp.		3,036		88,955
Spartan Stores, Inc.		1,616		22,656
Susser Holdings Corp. *		719		6,025
The Andersons, Inc.		1,271		41,053
The Great Atlantic & Pacific Tea Co., Inc. *		2,513		18,269
The Pantry, Inc. *		1,587		20,790
United Natural Foods, Inc. *		2,829		83,088
Village Super Market, Inc., Class A		345		8,539
Weis Markets, Inc.		926		32,317
Winn-Dixie Stores, Inc. *		3,933		43,027

				759,823

Food, Beverage & Tobacco 1.9%
Alico, Inc.		236		6,127
Alliance One International, Inc. *		6,377		32,714
American Italian Pasta Co., Class A *		1,518		58,898
B&G Foods, Inc., Class A		3,410		31,747
Cal-Maine Foods, Inc.		992		31,804
Calavo Growers, Inc.		877		15,514
Central European Distribution Corp. *		4,427		147,640
Chiquita Brands International, Inc. *		3,203		46,636
Coca-Cola Bottling Co. Consolidated		276		15,359
Corn Products International, Inc.		5,313		173,098
Darling International, Inc. *		5,894		47,506
Del Monte Foods Co.		14,378		168,510
Diamond Foods, Inc.		1,173		40,879
Dole Food Co., Inc. *		2,582		30,287
Farmer Brothers Co.		483		8,699
Fresh Del Monte Produce, Inc. *		3,062		59,433
Green Mountain Coffee Roasters, Inc. *		2,752		232,241
J&J Snack Foods Corp.		966		41,258
Lancaster Colony Corp.		1,449		83,375
Lance, Inc.		2,306		50,017
National Beverage Corp. *		759		8,653
Pilgrim’s Pride Corp. *		3,381		30,497
Sanderson Farms, Inc.		1,271		62,228
Smart Balance, Inc. *		4,485		22,470
Star Scientific, Inc. *		6,003		5,703
The Boston Beer Co., Inc., Class A *		719		34,023
The Hain Celestial Group, Inc. *		2,927		46,451
Tootsie Roll Industries, Inc.		1,656		45,060
TreeHouse Foods, Inc. *		2,237		96,258
Universal Corp.		1,754		93,050
Vector Group Ltd.		2,996		43,232

				1,809,367

Health Care Equipment & Services 6.7%
Abaxis, Inc. *		1,587		40,294
ABIOMED, Inc. *		2,415		24,416
Accuray, Inc. *		3,203		21,684
AGA Medical Holdings, Inc. *		966		12,944
Air Methods Corp. *		788		20,969
Align Technology, Inc. *		4,721		85,450
Alliance HealthCare Services, Inc. *		2,139		10,674
Allscripts-Misys Healthcare Solutions, Inc. *		4,278		76,533
Almost Family, Inc. *		581		20,951
Amedisys, Inc. *		1,961		113,052
American Medical Systems Holdings, Inc. *		5,273		95,547
AMERIGROUP Corp. *		3,824		100,495
AMN Healthcare Services, Inc. *		2,415		22,266
AmSurg Corp. *		2,168		44,791
Analogic Corp.		926		38,244
AngioDynamics, Inc. *		1,794		29,170
Arthrocare Corp. *		1,518		40,333
Assisted Living Concepts, Inc., Class A *		719		19,895
athenahealth, Inc. *		2,277		83,885
Bio-Reference Labs, Inc. *		857		33,946
Brookdale Senior Living, Inc. *		3,933		70,715
Cantel Medical Corp.		926		18,103
CardioNet, Inc. *		1,725		10,333
Catalyst Health Solutions, Inc. *		2,740		103,271
Centene Corp. *		3,680		65,762
Chemed Corp.		1,587		85,000
Clarient, Inc. *		3,381		7,202
Computer Programs & Systems, Inc.		788		28,321
Conceptus, Inc. *		1,794		35,216
CONMED Corp. *		2,139		46,801
CorVel Corp. *		512		16,486
Cross Country Healthcare, Inc. *		2,030		19,955
CryoLife, Inc. *		2,001		14,107
Cyberonics, Inc. *		1,823		32,541
Dexcom, Inc. *		3,243		29,317
Eclipsys Corp. *		4,071		75,761
Emdeon, Inc., Class A *		3,203		49,967
Emergency Medical Services Corp., Class A *		1,449		75,435
Emeritus Corp. *		1,449		25,415
Ensign Group, Inc.		897		14,944
ev3, Inc. *		4,968		72,284
Genoptix, Inc. *		1,242		40,452
Gentiva Health Services, Inc. *		2,070		57,360
Greatbatch, Inc. *		1,616		31,544
Haemonetics Corp. *		1,823		97,512
Hanger Orthopedic Group, Inc. *		2,277		42,466
Health Management Associates, Inc., Class A *		17,596		128,275
Health Net, Inc. *		7,452		172,067
HEALTHSOUTH Corp. *		6,722		116,291
Healthspring, Inc. *		3,755		69,130
Healthways, Inc. *		2,441		36,664
Hill-Rom Holdings, Inc.		4,485		117,686
HMS Holdings Corp. *		1,823		83,931
ICU Medical, Inc. *		926		31,827
Immucor, Inc. *		5,066		97,926
Insulet Corp. *		2,306		33,898
Integra LifeSciences Holdings Corp. *		1,518		60,416
Invacare Corp.		2,277		62,117
inVentiv Health, Inc. *		2,444		35,878
IPC The Hospitalist Co. *		1,064		35,176
IRIS International, Inc. *		1,311		15,037

See financial notes 69

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Kensey Nash Corp. *		650		14,345
Kindred Healthcare, Inc. *		2,789		48,584
Landauer, Inc.		650		39,500
LHC Group, Inc. *		1,064		32,026
LifePoint Hospitals, Inc. *		3,933		119,956
Magellan Health Services, Inc. *		2,513		105,345
MAKO Surgical Corp. *		1,754		23,205
Masimo Corp. *		3,795		105,084
MedAssets, Inc. *		3,203		69,345
MedCath Corp. *		1,104		7,474
Medidata Solutions, Inc. *		1,408		21,711
MEDNAX, Inc. *		3,243		173,500
MedQuist, Inc.		621		4,881
Meridian Bioscience, Inc.		2,924		64,796
Merit Medical Systems, Inc. *		2,027		29,837
Molina Healthcare, Inc. *		926		19,798
MWI Veterinary Supply, Inc. *		788		32,466
National Healthcare Corp.		621		22,847
Natus Medical, Inc. *		2,030		27,364
Neogen Corp. *		1,587		38,453
Nighthawk Radiology Holdings, Inc. *		1,380		4,099
NuVasive, Inc. *		2,720		108,664
Odyssey HealthCare, Inc. *		2,346		41,125
Omnicell, Inc. *		2,237		30,267
OraSure Technologies, Inc. *		3,272		17,996
Orthofix International N.V. *		1,173		39,988
Orthovita, Inc. *		5,411		20,778
Owens & Minor, Inc.		2,996		133,771
Palomar Medical Technologies, Inc. *		1,311		11,838
PharMerica Corp. *		2,168		37,181
Phase Forward, Inc. *		3,065		36,565
PSS World Medical, Inc. *		4,304		90,771
Psychiatric Solutions, Inc. *		3,795		81,403
Quality Systems, Inc.		1,311		75,042
Quidel Corp. *		1,932		25,232
RehabCare Group, Inc. *		1,725		48,024
Res-Care, Inc. *		1,794		16,361
RTI Biologics, Inc. *		3,893		14,599
Select Medical Holdings Corp. *		2,208		18,084
Sirona Dental Systems, Inc. *		1,725		61,910
Skilled Healthcare Group, Inc., Class A *		1,587		10,268
SonoSite, Inc. *		1,242		36,788
STERIS Corp.		3,864		122,141
Sun Healthcare Group, Inc. *		3,105		27,603
SurModics, Inc. *		1,133		21,822
Symmetry Medical, Inc. *		2,306		19,832
Synovis Life Technologies, Inc. *		854		11,956
Team Health Holdings, Inc. *		1,408		20,416
Tenet Healthcare Corp. *		34,549		182,073
The Cooper Cos., Inc.		3,243		129,915
Thoratec Corp. *		4,071		117,448
TomoTherapy, Inc. *		3,864		12,790
TranS1, Inc. *		759		2,376
Triple-S Management Corp., Class B *		1,449		25,111
Universal American Financial Corp. *		2,996		43,172
VCA Antech, Inc. *		6,101		145,326
Virtual Radiologic Corp. *		483		4,835
Volcano Corp. *		2,927		60,267
WellCare Health Plans, Inc. *		3,062		81,755
West Pharmaceutical Services, Inc.		2,346		91,377
Wright Medical Group, Inc. *		2,691		45,343
Zoll Medical Corp. *		1,518		39,347

				6,364,304

Household & Personal Products 0.8%
Bare Escentuals, Inc. *		4,899		89,064
Central Garden & Pet Co., Class A *		4,652		44,427
Elizabeth Arden, Inc. *		1,892		34,094
Herbalife Ltd.		4,416		176,861
Inter Parfums, Inc.		995		13,512
NBTY, Inc. *		4,031		183,007
Nu Skin Enterprises, Inc., Class A		3,686		98,490
Prestige Brands Holdings, Inc. *		3,065		24,612
Revlon, Inc., Class A *		788		11,812
USANA Health Sciences, Inc. *		532		14,731
WD-40 Co.		1,133		35,485

				726,095

Insurance 3.7%
Ambac Financial Group, Inc. *		20,659		14,668
American Equity Investment Life Holding Co.		4,169		36,687
American National Insurance Co.		1,133		122,976
American Physicians Capital, Inc.		621		17,649
AMERISAFE, Inc. *		1,340		23,061
AmTrust Financial Services, Inc.		1,725		24,443
Argo Group International Holdings Ltd. *		2,208		61,449
Arthur J. Gallagher & Co.		7,176		170,286
Aspen Insurance Holdings Ltd.		5,411		152,915
Assured Guaranty Ltd.		8,999		189,879
Baldwin & Lyons, Inc., Class B		670		16,201
Citizens, Inc. *		2,622		16,991
CNA Surety Corp. *		1,173		18,909
Conseco, Inc. *		16,561		82,474
Crawford & Co., Class B *		1,823		6,982
Delphi Financial Group, Inc., Class A		3,341		71,264
Donegal Group, Inc., Class A		926		13,621
eHealth, Inc. *		1,657		27,672
EMC Insurance Group, Inc.		394		7,982
Employers Holdings, Inc.		3,174		41,833
Endurance Specialty Holdings Ltd.		3,686		141,764
Enstar Group Ltd. *		512		32,261
Erie Indemnity Co., Class A		2,303		91,245
FBL Financial Group, Inc., Class A		926		18,816
First Mercury Financial Corp.		1,035		14,728
Flagstone Reinsurance Holdings Ltd.		2,553		29,206
FPIC Insurance Group, Inc. *		512		18,877
Greenlight Capital Re Ltd., Class A *		2,139		54,159
Harleysville Group, Inc.		897		30,094
Hilltop Holdings, Inc. *		2,967		35,485
Horace Mann Educators Corp.		2,809		37,753
Infinity Property & Casualty Corp.		966		39,364
Kansas City Life Insurance Co.		276		8,084
Maiden Holdings Ltd.		4,347		30,516
Max Capital Group Ltd.		3,410		82,317
MBIA, Inc. *		11,592		55,873
Meadowbrook Insurance Group, Inc.		4,100		29,028
Mercury General Corp.		1,892		77,686
Montpelier Re Holdings Ltd.		5,589		99,149

70 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
National Financial Partners Corp. *		2,967		34,091
National Interstate Corp.		483		8,462
National Western Life Insurance Co., Class A		167		28,038
OneBeacon Insurance Group Ltd., Class A		1,656		25,122
Platinum Underwriters Holdings Ltd.		3,588		134,155
PMA Capital Corp., Class A *		2,277		12,933
Presidential Life Corp.		1,587		15,553
ProAssurance Corp. *		2,375		126,635
Protective Life Corp.		6,141		112,749
RLI Corp.		1,380		73,540
Safety Insurance Group, Inc.		1,064		39,517
Seabright Insurance Holdings, Inc. *		1,547		16,259
Selective Insurance Group, Inc.		3,821		61,938
StanCorp Financial Group, Inc.		3,548		152,493
State Auto Financial Corp.		995		18,248
Stewart Information Services Corp.		1,202		16,900
Symetra Financial Corp. *		2,208		28,682
The Navigators Group, Inc. *		995		37,681
The Phoenix Cos., Inc. *		7,826		18,548
Tower Group, Inc.		2,927		66,648
United America Indemnity Ltd., Class A *		2,030		16,423
United Fire & Casualty Co.		1,616		27,472
Unitrin, Inc.		3,272		79,052
Validus Holdings Ltd.		6,790		190,052
Zenith National Insurance Corp.		2,651		100,977

				3,486,515

Materials 5.7%
A. Schulman, Inc.		1,725		40,641
A.M. Castle & Co.		1,311		15,103
AK Steel Holding Corp.		7,866		169,355
Allied Nevada Gold Corp. *		4,485		61,714
AMCOL International Corp.		1,889		48,056
American Vanguard Corp.		1,685		10,868
Arch Chemicals, Inc.		1,794		55,381
Ashland, Inc.		4,830		227,396
Balchem Corp.		2,018		44,214
Brush Engineered Materials, Inc. *		1,449		29,763
Buckeye Technologies, Inc. *		2,760		30,498
Bway Holding Co. *		828		12,478
Cabot Corp.		3,657		106,272
Calgon Carbon Corp. *		4,031		62,521
Carpenter Technology Corp.		3,174		94,807
Cellu Tissue Holdings, Inc. *		552		5,713
Century Aluminum Co. *		4,651		56,696
Clearwater Paper Corp. *		788		38,029
Coeur d’Alene Mines Corp. *		5,658		82,890
Commercial Metals Co.		8,073		132,397
Compass Minerals International, Inc.		2,306		174,172
Cytec Industries, Inc.		3,519		150,156
Deltic Timber Corp.		828		38,038
Domtar Corp. *		3,036		158,692
Eagle Materials, Inc.		3,105		73,247
Ferro Corp.		5,756		47,142
Glatfelter		3,272		44,172
Graham Packaging Co., Inc. *		1,173		12,270
Graphic Packaging Holding Co. *		5,687		19,791
Greif, Inc., Class A		2,484		127,280
H.B. Fuller Co.		3,479		73,024
Haynes International, Inc.		828		24,045
Headwaters, Inc. *		3,105		15,494
Hecla Mining Co. *		17,090		88,868
Horsehead Holding Corp. *		3,174		32,280
Huntsman Corp.		12,006		164,842
Innophos Holdings, Inc.		1,271		29,513
Kaiser Aluminum Corp.		1,104		36,863
Koppers Holdings, Inc.		1,449		40,282
Kraton Performance Polymers, Inc. *		739		9,969
Kronos Worldwide, Inc. *		256		4,030
Louisiana-Pacific Corp. *		8,763		66,686
LSB Industries, Inc. *		1,271		18,061
Minerals Technologies, Inc.		1,340		65,432
Myers Industries, Inc.		2,277		21,108
Nalco Holding Co.		9,896		230,181
Neenah Paper, Inc.		1,104		15,644
NewMarket Corp.		820		73,021
NL Industries, Inc.		512		3,697
Olin Corp.		4,928		86,289
Olympic Steel, Inc.		670		18,532
OM Group, Inc. *		2,208		75,999
Packaging Corp. of America		7,383		175,715
PolyOne Corp. *		6,256		49,735
Rock-Tenn Co., Class A		2,760		115,478
Rockwood Holdings, Inc. *		3,657		87,731
Royal Gold, Inc.		3,795		170,547
RPM International, Inc.		9,246		177,986
RTI International Metals, Inc. *		2,099		50,439
Schnitzer Steel Industries, Inc., Class A		1,518		69,312
Schweitzer-Mauduit International, Inc.		1,242		57,008
Sensient Technologies Corp.		3,519		92,972
Silgan Holdings, Inc.		1,823		104,112
Solutia, Inc. *		8,763		123,295
Spartech Corp. *		2,168		22,092
Stepan Co.		621		29,522
Stillwater Mining Co. *		3,243		36,808
STR Holdings, Inc. *		897		14,899
Temple-Inland, Inc.		7,659		142,611
Texas Industries, Inc.		1,656		58,838
Titanium Metals Corp. *		6,141		72,402
US Gold Corp. *		6,348		17,076
Valhi, Inc.		828		14,449
W.R. Grace & Co. *		4,347		125,889
Wausau Paper Corp. *		3,519		29,771
Westlake Chemical Corp.		1,380		27,945
Worthington Industries, Inc.		4,649		73,640
Zep, Inc.		1,547		34,173
Zoltek Cos., Inc. *		2,070		18,402

				5,356,459

Media 2.2%
Arbitron, Inc.		1,892		40,678
Ascent Media Corp., Class A *		992		25,792
Belo Corp., Class A		6,486		43,651
Cinemark Holdings, Inc.		3,228		52,003
CKX, Inc. *		4,761		19,853
Crown Media Holdings, Inc., Class A *		650		1,079
Dex One Corp. *		3,588		106,922
Dolan Media Co. *		2,001		20,850
Fisher Communications, Inc. *		414		5,883

See financial notes 71

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Gannett Co., Inc.		16,561		250,899
Harte-Hanks, Inc.		2,760		32,816
Journal Communications, Inc., Class A		2,967		11,097
Knology, Inc. *		2,237		25,614
Lamar Advertising Co., Class A *		4,140		124,531
Liberty Media Corp. - Capital, Series A *		6,141		207,811
Live Nation, Inc. *		10,236		132,966
Martha Stewart Living Omnimedia, Class A *		1,823		9,753
Mediacom Communications Corp., Class A *		2,760		12,806
Meredith Corp.		2,622		80,548
Morningstar, Inc. *		1,547		68,223
National CineMedia, Inc.		3,036		48,849
PRIMEDIA, Inc.		1,518		5,617
RCN Corp. *		2,691		29,547
Regal Entertainment Group, Class A		5,618		83,933
Scholastic Corp.		1,961		57,653
Sinclair Broadcast Group, Inc., Class A *		3,450		17,319
Sirius XM Radio, Inc. *		277,685		283,239
SuperMedia, Inc. *		1,104		46,368
The E.W. Scripps Co., Class A *		2,001		15,248
The New York Times Co., Class A *		6,969		76,241
Valassis Communications, Inc. *		3,450		88,389
Value Line, Inc.		69		1,836
Warner Music Group Corp. *		3,755		21,554
World Wrestling Entertainment, Inc., Class A		1,932		32,941

				2,082,509

Pharmaceuticals, Biotechnology & Life Sciences 4.8%
Abraxis BioScience, Inc. *		414		13,393
Acorda Therapeutics, Inc. *		2,720		82,090
Acura Pharmaceuticals, Inc. *		690		3,381
Aedea Biosciences, Inc. *		1,035		14,738
Affymax, Inc. *		926		17,316
Affymetrix, Inc. *		5,037		36,820
Akorn, Inc. *		3,795		5,768
Albany Molecular Research, Inc. *		1,616		14,512
Alkermes, Inc. *		6,791		77,825
Allos Therapeutics, Inc. *		5,727		44,556
Alnylam Pharmaceuticals, Inc. *		2,622		45,675
AMAG Pharmaceuticals, Inc. *		1,473		56,254
Amicus Therapeutics, Inc. *		483		1,599
Arena Pharmaceuticals, Inc. *		6,624		20,137
ARIAD Pharmaceuticals, Inc. *		7,826		19,878
ArQule, Inc. *		2,001		6,583
Array Biopharma, Inc. *		2,995		6,709
Auxilium Pharmaceuticals, Inc. *		3,065		92,563
Bio-Rad Laboratories, Inc., Class A *		1,409		131,587
BioCryst Pharmaceuticals, Inc. *		2,099		13,434
Biodel, Inc. *		1,104		4,405
BioMarin Pharmaceutical, Inc. *		7,156		143,120
Bruker Corp. *		3,706		46,325
Cadence Pharmaceuticals, Inc. *		2,208		18,945
Cambrex Corp. *		2,139		8,064
Caraco Pharmaceutical Laboratories Ltd. *		828		3,552
Celera Corp. *		5,756		34,478
Cell Therapeutics, Inc. *		41,354		27,707
Cepheid, Inc. *		4,140		62,514
Clinical Data, Inc. *		1,104		20,071
Cubist Pharmaceuticals, Inc. *		4,140		87,106
Cumberland Pharmaceuticals, Inc. *		552		6,127
Cypress Bioscience, Inc. *		2,691		14,101
Dionex Corp. *		1,271		86,809
Durect Corp. *		5,729		13,692
Emergent Biosolutions, Inc. *		1,173		17,196
Enzo Biochem, Inc. *		2,651		13,865
Enzon Pharmaceuticals, Inc. *		2,898		26,922
eResearchTechnology, Inc. *		3,519		21,290
Exelixis, Inc. *		7,659		49,554
Facet Biotech Corp. *		1,754		28,748
Genomic Health, Inc. *		1,153		20,639
Geron Corp. *		6,555		36,380
GTx, Inc. *		966		3,864
Halozyme Therapeutics, Inc. *		5,520		30,194
Human Genome Sciences, Inc. *		13,000		365,950
Idenix Pharmaceuticals, Inc. *		2,237		6,085
ImmunoGen, Inc. *		4,100		27,101
Immunomedics, Inc. *		4,876		18,480
Impax Laboratories, Inc. *		3,844		59,236
Incyte Corp. *		8,004		85,323
Inspire Pharmaceuticals, Inc. *		4,623		28,570
InterMune, Inc. *		3,160		43,418
Ironwood Pharmaceuticals, Inc. *		1,173		15,249
Isis Pharmaceuticals, Inc. *		6,693		59,166
Kendle International, Inc. *		1,064		18,120
Lexicon Pharmaceuticals, Inc. *		8,584		15,365
Ligand Pharmaceuticals, Inc., Class B *		7,728		13,601
Luminex Corp. *		2,967		43,467
MannKind Corp. *		4,623		46,184
MAP Pharmaceuticals, Inc. *		1,173		16,094
Martek Biosciences Corp. *		2,375		47,096
Maxygen, Inc. *		1,685		9,032
Medicis Pharmaceutical Corp., Class A		4,120		92,700
Medivation, Inc. *		2,375		85,524
Metabolix, Inc. *		1,754		16,733
Micromet, Inc. *		4,928		36,664
Momenta Pharmaceuticals, Inc. *		2,760		40,406
Nabi Biopharmaceuticals *		3,617		18,917
Nektar Therapeutics *		6,653		82,431
Neurocrine Biosciences, Inc. *		2,789		7,307
Novavax, Inc. *		6,170		13,389
NPS Pharmaceuticals, Inc. *		3,450		11,523
Onyx Pharmaceuticals, Inc. *		4,120		114,371
Opko Health, Inc. *		9,660		19,417
Optimer Pharmaceuticals, Inc. *		2,139		25,561
Orexigen Therapeutics, Inc. *		2,415		15,166
Osiris Therapeutics, Inc. *		1,449		11,925
Pain Therapeutics, Inc. *		2,444		14,786
Par Pharmaceutical Cos., Inc. *		2,484		62,175
PAREXEL International Corp. *		4,189		84,408
PDL BioPharma, Inc.		8,556		59,892
Pharmasset, Inc. *		1,685		35,739
POZEN, Inc. *		1,725		10,367
Progenics Pharmaceuticals, Inc. *		1,892		8,230
Questcor Pharmaceuticals, Inc. *		3,893		18,219
Regeneron Pharmaceuticals, Inc. *		4,554		111,391
Rigel Pharmaceuticals, Inc. *		3,548		26,787
Salix Pharmaceuticals Ltd. *		3,962		113,155
Sangamo BioSciences, Inc. *		2,651		13,282
Savient Pharmaceuticals, Inc. *		4,416		59,528

72 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Seattle Genetics, Inc. *		5,687		58,007
Sequenom, Inc. *		4,376		28,313
SIGA Technologies, Inc. *		2,375		15,699
StemCells, Inc. *		8,556		10,011
Sucampo Pharmaceuticals, Inc., Class A *		552		1,904
Synta Pharmaceuticals Corp. *		1,380		5,396
Targacept, Inc. *		1,271		24,098
The Medicines Co. *		3,795		29,222
Theravance, Inc. *		3,795		41,328
United Therapeutics Corp. *		3,361		192,955
Valeant Pharmaceuticals International *		5,037		187,477
Vanda Pharmaceuticals, Inc. *		1,616		16,596
Varian, Inc. *		2,099		108,476
ViroPharma, Inc. *		5,569		69,390
VIVUS, Inc. *		5,796		48,686
XenoPort, Inc. *		2,188		17,504
ZymoGenetics, Inc. *		3,603		19,240

				4,532,318

Real Estate 8.3%
Acadia Realty Trust		2,858		47,814
Alexander’s, Inc. *		207		60,444
Alexandria Real Estate Equities, Inc.		3,134		193,117
American Campus Communities, Inc.		3,755		103,788
American Capital Agency Corp.		1,396		35,347
Anworth Mortgage Asset Corp.		7,728		52,241
Apartment Investment & Management Co., Class A		8,418		140,496
Ashford Hospitality Trust *		4,418		24,211
Avatar Holdings, Inc. *		621		10,011
BioMed Realty Trust, Inc.		6,929		107,053
Brandywine Realty Trust		9,246		103,648
BRE Properties, Inc.		3,893		131,233
Camden Property Trust		4,583		183,549
CapLease, Inc.		3,686		16,218
Capstead Mortgage Corp.		4,692		58,369
CBL & Associates Properties, Inc.		9,936		118,139
Cedar Shopping Centers, Inc.		3,755		24,745
Chimera Investment Corp.		45,196		180,784
Colonial Properties Trust		4,790		56,474
Colony Financial, Inc.		915		18,245
Corporate Office Properties Trust		4,169		153,544
Cousins Properties, Inc.		5,963		42,874
CreXus Investment Corp. *		966		13,360
DCT Industrial Trust, Inc.		14,933		73,470
Developers Diversified Realty Corp.		11,799		125,187
DiamondRock Hospitality Co. *		8,774		78,440
Douglas Emmett, Inc.		8,763		123,471
Duke Realty Corp.		16,146		179,221
DuPont Fabros Technology, Inc.		3,036		59,506
EastGroup Properties, Inc.		1,889		67,815
Education Realty Trust, Inc.		3,824		20,841
Entertainment Properties Trust		2,987		114,163
Equity Lifestyle Properties, Inc.		2,168		107,836
Equity One, Inc.		2,789		51,513
Essex Property Trust, Inc.		2,099		180,304
Extra Space Storage, Inc.		6,210		70,049
FelCor Lodging Trust, Inc. *		4,652		17,538
First Industrial Realty Trust, Inc. *		3,824		21,147
First Potomac Realty Trust		2,168		29,658
Forest City Enterprises, Inc., Class A *		8,694		104,328
Forestar Group, Inc. *		2,553		45,290
Franklin Street Properties Corp.		5,106		66,225
Getty Realty Corp.		1,242		27,436
Government Properties Income Trust		1,380		32,499
Hatteras Financial Corp.		2,582		67,055
Healthcare Realty Trust, Inc.		4,209		87,926
Highwoods Properties, Inc.		5,106		148,329
Home Properties, Inc.		2,415		110,607
Hospitality Properties Trust		8,812		193,600
HRPT Properties Trust		16,215		113,829
Inland Real Estate Corp.		5,273		44,293
Invesco Mortgage Capital		1,126		25,560
Investors Real Estate Trust		5,135		45,907
iStar Financial, Inc. *		7,107		27,504
Jones Lang LaSalle, Inc.		2,967		188,968
Kilroy Realty Corp.		3,065		86,832
Kite Realty Group Trust		4,554		18,717
LaSalle Hotel Properties		4,554		88,393
Lexington Realty Trust		7,038		41,876
LTC Properties, Inc.		1,685		43,945
Mack-Cali Realty Corp.		5,658		189,769
Medical Properties Trust, Inc.		5,727		58,931
MFA Financial, Inc.		19,596		141,875
Mid-America Apartment Communities, Inc.		2,099		109,022
National Health Investors, Inc.		1,656		57,645
National Retail Properties, Inc.		5,934		125,920
NorthStar Realty Finance Corp.		4,928		21,043
OMEGA Healthcare Investors, Inc.		6,101		115,736
Parkway Properties, Inc.		1,587		26,344
Pebblebrook Hotel Trust *		1,270		25,730
Pennsylvania Real Estate Investment Trust		3,203		32,190
Pennymac Mortgage Investment Trust *		1,173		19,343
Post Properties, Inc.		3,479		66,936
Potlatch Corp.		2,829		93,414
PS Business Parks, Inc.		1,380		67,620
RAIT Financial Trust *		4,307		7,322
Ramco-Gershenson Properties Trust		2,237		22,415
Redwood Trust, Inc.		4,997		71,207
Saul Centers, Inc.		512		18,268
Senior Housing Properties Trust		9,137		189,958
SL Green Realty Corp.		5,520		281,851
Sovran Self Storage, Inc.		1,958		62,127
Starwood Property Trust, Inc.		3,065		57,346
Sun Communities, Inc.		1,173		22,604
Sunstone Hotel Investors, Inc. *		6,791		60,712
Tanger Factory Outlet Centers, Inc.		2,858		119,093
Taubman Centers, Inc.		3,795		146,980
Tejon Ranch Co. *		857		27,767
The Macerich Co.		6,764		241,069
U-Store-It Trust		5,589		36,384
UDR, Inc.		11,000		184,800
Universal Health Realty Income Trust		788		26,658
Urstadt Biddle Properties		207		2,970
Urstadt Biddle Properties, Class A		1,271		20,044
Walter Investment Management Corp.		1,754		25,398
Washington Real Estate Investment Trust		4,307		119,993
Weingarten Realty Investors		8,625		177,589

				7,879,055

See financial notes 73

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Retailing 4.8%
1-800-FLOWERS.COM, Inc., Class A *		1,725		3,502
99 Cents Only Stores *		3,272		53,988
Aaron’s, Inc.		3,519		104,409
Aeropostale, Inc. *		4,830		170,789
AnnTaylor Stores Corp. *		4,209		72,437
Asbury Automotive Group, Inc. *		2,326		27,051
Audiovox Corp., Class A *		1,380		9,964
Barnes & Noble, Inc.		2,829		56,778
bebe stores, Inc.		2,070		17,450
Big 5 Sporting Goods Corp.		1,340		20,475
Big Lots, Inc. *		5,963		199,760
Blockbuster, Inc., Class A *		11,178		3,359
Blue Nile, Inc. *		1,035		53,033
Brown Shoe Co., Inc.		3,065		42,389
Cabela’s, Inc. *		2,967		45,870
Charming Shoppes, Inc. *		7,107		42,287
Chico’s FAS, Inc. *		12,627		171,096
Christopher & Banks Corp.		2,582		17,919
Citi Trends, Inc. *		995		29,591
Coldwater Creek, Inc. *		4,209		21,845
Collective Brands, Inc. *		4,623		104,480
Conn’s, Inc. *		788		3,546
Core-Mark Holding Co., Inc. *		690		22,108
Dick’s Sporting Goods, Inc. *		6,072		147,732
Dillard’s, Inc., Class A		3,962		66,839
DSW, Inc., Class A *		1,084		29,192
Foot Locker, Inc.		11,138		144,460
Fred’s, Inc., Class A		2,651		27,438
Gaiam, Inc., Class A *		1,173		8,187
Genesco, Inc. *		1,587		37,977
Group 1 Automotive, Inc. *		1,725		47,903
hhgregg, Inc. *		1,616		33,726
Hibbett Sports, Inc. *		2,050		47,170
Hot Topic, Inc. *		3,105		20,089
HSN, Inc. *		2,829		61,276
J. Crew Group, Inc. *		3,726		156,790
Jo-Ann Stores, Inc. *		1,892		71,612
Jos. A. Bank Clothiers, Inc. *		1,311		58,641
LKQ Corp. *		10,074		192,917
Lumber Liquidators Holdings, Inc. *		1,104		24,487
Monro Muffler Brake, Inc.		1,380		48,107
New York & Co., Inc. *		1,932		7,168
NutriSystem, Inc.		2,208		42,725
Office Depot, Inc. *		19,596		141,483
OfficeMax, Inc. *		5,451		87,052
Orbitz Worldwide, Inc. *		2,760		16,422
Overstock.com, Inc. *		1,133		13,947
Pacific Sunwear Of California, Inc. *		4,692		21,020
Penske Automotive Group, Inc. *		2,878		41,875
PetMed Express, Inc.		1,616		31,302
RadioShack Corp.		9,039		176,803
Rent-A-Center, Inc. *		4,721		104,995
Retail Ventures, Inc. *		966		8,636
Rue21, Inc. *		483		13,881
Saks, Inc. *		9,709		67,769
Sally Beauty Holdings, Inc. *		6,072		49,730
Shutterfly, Inc. *		1,311		25,158
Signet Jewelers Ltd. *		6,098		175,683
Sonic Automotive, Inc., Class A *		2,484		25,585
Stage Stores, Inc.		2,829		37,626
Stamps.com, Inc. *		857		7,764
Stein Mart, Inc. *		1,892		15,458
Systemax, Inc. *		305		4,971
The Buckle, Inc.		1,932		56,550
The Cato Corp., Class A		2,001		39,220
The Children’s Place Retail Stores, Inc. *		1,380		52,730
The Dress Barn, Inc. *		4,558		113,312
The Finish Line, Inc., Class A		3,686		44,564
The Gymboree Corp. *		2,168		94,308
The Men’s Wearhouse, Inc.		3,381		72,218
The Pep Boys-Manny, Moe & Jack		3,548		33,706
The Talbots, Inc. *		1,725		18,699
The Wet Seal, Inc., Class A *		6,998		28,062
Tractor Supply Co. *		2,622		143,476
Ulta Salon, Cosmetics & Fragrance, Inc. *		2,484		45,532
Vitacost.com, Inc. *		828		9,282
Vitamin Shoppe, Inc. *		650		12,915
Williams-Sonoma, Inc.		6,831		146,593
Zumiez, Inc. *		1,518		21,768

				4,568,657

Semiconductors & Semiconductor Equipment 3.8%
Actel Corp. *		1,892		24,237
Advanced Analogic Technologies, Inc. *		3,082		10,109
Advanced Energy Industries, Inc. *		2,346		34,064
Amkor Technology, Inc. *		8,349		50,261
ANADIGICS, Inc. *		4,485		18,433
Applied Micro Circuits Corp. *		4,721		42,206
Atheros Communications *		4,445		159,531
Atmel Corp. *		28,940		130,519
ATMI, Inc. *		2,237		37,671
Brooks Automation, Inc. *		4,373		37,783
Cabot Microelectronics Corp. *		1,705		60,357
Cavium Networks, Inc. *		2,651		63,359
Cirrus Logic, Inc. *		4,209		30,052
Cohu, Inc.		1,567		20,998
Cymer, Inc. *		2,070		64,832
Cypress Semiconductor Corp. *		11,138		131,874
Diodes, Inc. *		2,441		47,868
DSP Group, Inc. *		1,587		11,633
Entegris, Inc. *		9,315		41,731
Exar Corp. *		2,622		19,377
Fairchild Semiconductor International, Inc. *		8,930		92,158
FEI Co. *		2,691		57,264
FormFactor, Inc. *		3,548		58,365
Hittite Microwave Corp. *		1,380		57,601
Integrated Device Technology, Inc. *		11,828		64,699
International Rectifier Corp. *		5,106		103,294
Intersil Corp., Class A		8,792		130,473
IXYS Corp. *		1,754		14,927
Kulicke & Soffa Industries, Inc. *		4,830		31,781
Lattice Semiconductor Corp. *		8,211		23,566
Micrel, Inc.		2,996		29,511
Microsemi Corp. *		5,825		90,346
MKS Instruments, Inc. *		3,134		56,506
Monolithic Power Systems, Inc. *		2,513		51,039
Netlogic Microsystems, Inc. *		1,380		74,782
Novellus Systems, Inc. *		7,038		155,681
OmniVision Technologies, Inc. *		3,617		52,555

74 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
PMC-Sierra, Inc. *		16,382		135,971
Power Integrations, Inc.		1,932		69,475
Rambus, Inc. *		7,521		165,086
RF Micro Devices, Inc. *		17,348		73,035
Rubicon Technology, Inc. *		966		15,166
Semtech Corp. *		4,347		68,987
Sigma Designs, Inc. *		1,892		22,136
Silicon Image, Inc. *		5,520		13,358
Silicon Laboratories, Inc. *		3,272		148,680
Silicon Storage Technology, Inc. *		5,658		18,049
Skyworks Solutions, Inc. *		12,311		187,989
Standard Microsystems Corp. *		1,587		30,978
Supertex, Inc. *		788		18,841
Teradyne, Inc. *		12,420		124,076
Tessera Technologies, Inc. *		3,588		64,440
Trident Microsystems, Inc. *		4,554		6,740
TriQuint Semiconductor, Inc. *		10,793		77,602
Ultratech, Inc. *		1,616		20,846
Veeco Instruments, Inc. *		2,720		92,752
Volterra Semiconductor Corp. *		1,794		39,163
Zoran Corp. *		3,686		41,799

				3,616,612

Software & Services 6.6%
ACI Worldwide, Inc. *		2,464		44,943
Acxiom Corp. *		5,684		95,832
Advent Software, Inc. *		1,035		41,731
Ancestry.com, Inc. *		483		7,694
Archipelago Learning, Inc. *		443		8,049
ArcSight, Inc. *		2,099		56,253
Ariba, Inc. *		6,348		76,239
Art Technology Group, Inc. *		9,551		37,917
Aspen Technology, Inc. *		4,485		40,365
Blackbaud, Inc.		3,105		72,284
Blackboard, Inc. *		2,168		84,725
Bottomline Technologies, Inc. *		1,823		28,967
CACI International, Inc., Class A *		2,168		107,446
Cadence Design Systems, Inc. *		18,955		108,044
Cass Information Systems, Inc.		552		16,709
CIBER, Inc. *		4,376		16,322
CommVault Systems, Inc. *		2,789		61,079
Compuware Corp. *		16,560		124,034
comScore, Inc. *		1,616		25,080
Concur Technologies, Inc. *		3,036		119,436
Constant Contact, Inc. *		1,892		35,324
Convergys Corp. *		8,375		103,348
CSG Systems International, Inc. *		2,513		50,562
CyberSource Corp. *		5,037		86,284
DealerTrack Holdings, Inc. *		2,691		38,266
Deltek, Inc. *		2,484		19,102
DemandTec, Inc. *		1,242		7,291
Dice Holdings, Inc. *		1,656		10,930
Digital River, Inc. *		2,720		71,509
DivX, Inc. *		2,208		13,336
EarthLink, Inc. *		7,659		63,876
Ebix, Inc. *		2,181		31,668
Echo Global Logistics, Inc. *		414		4,682
Epicor Software Corp. *		3,479		29,815
EPIQ Systems, Inc. *		2,346		27,261
Euronet Worldwide, Inc. *		3,450		62,514
Exlservice Holdings, Inc. *		1,104		18,989
Fair Isaac Corp.		3,479		79,878
FalconStor Software, Inc. *		2,306		8,186
Forrester Research, Inc. *		1,035		30,998
Fortinet, Inc. *		926		15,909
Gartner, Inc. *		4,583		109,030
Global Cash Access Holdings, Inc. *		2,444		18,306
GSI Commerce, Inc. *		3,823		95,460
Heartland Payment Systems, Inc.		2,651		40,534
iGate Corp.		1,725		15,767
infoGROUP, Inc. *		2,208		17,730
Informatica Corp. *		6,446		164,502
InfoSpace, Inc. *		2,484		25,039
Integral Systems, Inc. *		1,311		11,222
Internap Network Services Corp. *		3,617		18,194
Internet Brands, Inc., Class A *		1,932		15,920
j2 Global Communications, Inc. *		3,203		69,505
Jack Henry & Associates, Inc.		6,032		136,203
JDA Software Group, Inc. *		2,908		82,296
Kenexa Corp. *		1,409		13,907
Lawson Software, Inc. *		10,240		61,645
Limelight Networks, Inc. *		2,996		11,025
Lionbridge Technologies, Inc. *		3,933		12,586
Liquidity Services, Inc. *		1,064		13,087
LogMeIn, Inc. *		1,019		19,116
LoopNet, Inc. *		2,208		20,866
Manhattan Associates, Inc. *		1,587		40,103
Marchex, Inc., Class B		1,587		8,157
MAXIMUS, Inc.		1,271		73,184
Mentor Graphics Corp. *		7,067		58,797
MICROS Systems, Inc. *		5,756		172,910
MicroStrategy, Inc., Class A *		649		57,560
ModusLink Global Solutions, Inc. *		3,312		32,789
MoneyGram International, Inc. *		6,003		16,628
Monotype Imaging Holdings, Inc. *		1,685		16,024
Move, Inc. *		10,833		17,008
NCI, Inc., Class A *		483		13,606
NetScout Systems, Inc. *		2,237		32,638
NetSuite, Inc. *		1,656		20,468
NeuStar, Inc., Class A *		5,224		121,092
NIC, Inc.		3,864		28,864
Novell, Inc. *		24,869		116,636
OpenTable, Inc. *		1,109		37,795
OPNET Technologies, Inc.		897		13,303
Parametric Technology Corp. *		8,349		145,356
Pegasystems, Inc.		1,096		39,456
Perficient, Inc. *		2,277		25,275
Progress Software Corp. *		2,858		80,081
Quest Software, Inc. *		4,514		76,061
QuinStreet, Inc. *		690		10,074
Rackspace Hosting, Inc. *		5,520		109,462
Radiant Systems, Inc. *		2,001		22,351
RealNetworks, Inc. *		6,417		29,518
Renaissance Learning, Inc.		483		6,738
RightNow Technologies, Inc. *		1,587		24,694
Rosetta Stone, Inc. *		788		17,336
S1 Corp. *		3,824		23,747
Sapient Corp. *		6,722		60,632
SAVVIS, Inc. *		2,878		40,551
Smith Micro Software, Inc. *		2,139		18,738
Solarwinds, Inc. *		2,224		41,833
Solera Holdings, Inc.		4,968		169,707
SonicWALL, Inc. *		3,824		30,630

See financial notes 75

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Sourcefire, Inc. *		1,547		36,138
SRA International, Inc., Class A *		2,996		57,104
SuccessFactors, Inc. *		3,893		70,502
Switch & Data Facilities Co. *		1,547		27,676
Symyx Technologies, Inc. *		2,553		11,131
Synchronoss Technologies, Inc. *		1,340		23,329
Syntel, Inc.		1,656		56,138
Take-Two Interactive Software, Inc. *		5,796		55,758
Taleo Corp., Class A *		2,346		55,225
TechTarget *		1,242		6,496
TeleCommunication Systems, Inc., Class A *		2,927		22,304
TeleTech Holdings, Inc. *		2,257		39,475
Terremark Worldwide, Inc. *		2,967		21,362
The Knot, Inc. *		2,139		16,363
The Ultimate Software Group, Inc. *		1,774		54,852
THQ, Inc. *		4,761		28,852
TIBCO Software, Inc. *		12,213		111,993
TiVo, Inc. *		7,797		73,916
TNS, Inc. *		1,823		43,078
Tyler Technologies, Inc. *		2,513		45,636
Unisys Corp. *		2,789		97,364
United Online, Inc.		6,003		37,579
ValueClick, Inc. *		6,211		58,942
VASCO Data Security International, Inc. *		1,863		14,755
VeriFone Holdings, Inc. *		5,342		103,101
Vocus, Inc. *		1,311		18,656
WebMD Health Corp. *		3,312		142,681
Websense, Inc. *		2,878		61,762
Wright Express Corp. *		2,760		78,163

				6,274,950

Technology Hardware & Equipment 6.0%
3Com Corp. *		28,180		215,013
3PAR, Inc. *		2,415		22,290
Acme Packet, Inc. *		2,277		37,958
Adaptec, Inc. *		7,412		22,829
ADC Telecommunications, Inc. *		6,929		43,930
ADTRAN, Inc.		4,445		103,924
Agilysys, Inc.		1,173		12,809
Airvana, Inc. *		2,208		16,847
Anaren, Inc. *		1,084		13,333
Anixter International, Inc. *		2,139		89,282
Arris Group, Inc. *		8,930		92,158
Aruba Networks, Inc. *		4,761		55,846
Aviat Networks, Inc. *		4,169		25,639
Avid Technology, Inc. *		2,030		27,303
AVX Corp.		3,726		45,830
Bel Fuse, Inc., Class B		759		17,252
Benchmark Electronics, Inc. *		4,692		92,902
BigBand Networks, Inc. *		3,105		8,942
Black Box Corp.		1,242		35,931
Blue Coat Systems, Inc. *		2,858		82,825
Brightpoint, Inc. *		4,761		33,946
Checkpoint Systems, Inc. *		2,789		57,509
Ciena Corp. *		6,581		94,372
Cogent, Inc. *		3,341		33,076
Cognex Corp.		2,582		48,800
Coherent, Inc. *		1,656		52,644
CommScope, Inc. *		6,719		171,267
Compellent Technologies, Inc. *		1,133		17,595
Comtech Telecommunications Corp. *		2,030		64,189
CTS Corp.		2,415		19,223
Daktronics, Inc.		2,691		20,371
DG Fastchannel, Inc. *		1,311		42,463
Diebold, Inc.		4,721		136,720
Digi International, Inc. *		1,823		18,503
DTS, Inc. *		1,242		39,744
Echelon Corp. *		2,346		19,284
EchoStar Corp., Class A *		2,898		58,366
Electro Rent Corp.		1,311		15,247
Electro Scientific Industries, Inc. *		1,754		21,943
Electronics for Imaging, Inc. *		3,588		42,554
EMS Technologies, Inc. *		1,064		14,598
Emulex Corp. *		5,796		73,609
Extreme Networks, Inc. *		6,348		17,457
FARO Technologies, Inc. *		1,064		25,472
Finisar Corp. *		4,238		53,102
Harmonic, Inc. *		6,791		44,549
Hughes Communications, Inc. *		621		17,494
Hutchinson Technology, Inc. *		1,616		10,666
Hypercom Corp. *		3,726		12,929
ICx Technologies, Inc. *		966		6,289
Imation Corp. *		2,237		20,580
Infinera Corp. *		6,860		51,999
Insight Enterprises, Inc. *		3,312		42,360
InterDigital, Inc. *		3,134		80,387
Intermec, Inc. *		3,450		49,128
IPG Photonics Corp. *		1,863		29,473
Isilon Systems, Inc. *		1,863		13,768
Ixia *		2,484		19,226
Jabil Circuit, Inc.		14,214		215,626
JDS Uniphase Corp. *		15,692		168,375
L-1 Identity Solutions, Inc. *		6,032		51,393
Lexmark International, Inc., Class A *		5,618		189,383
Littelfuse, Inc. *		1,547		55,058
Loral Space & Communications, Inc. *		828		26,935
Maxwell Technologies, Inc. *		1,656		22,952
Methode Electronics, Inc.		2,760		34,334
MTS Systems Corp.		1,202		32,718
Multi-Fineline Electronix, Inc. *		621		13,538
National Instruments Corp.		4,416		139,634
NETGEAR, Inc. *		2,444		61,955
Newport Corp. *		2,553		26,909
Novatel Wireless, Inc. *		2,168		14,439
Opnext, Inc. *		3,519		7,179
OSI Systems, Inc. *		1,133		34,942
Palm, Inc. *		10,790		65,819
Park Electrochemical Corp.		1,311		35,633
Plantronics, Inc.		3,476		98,823
Plexus Corp. *		2,829		97,572
Polycom, Inc. *		5,963		155,694
QLogic Corp. *		8,280		150,696
Quantum Corp. *		13,870		34,398
Riverbed Technology, Inc. *		4,031		109,845
Rofin-Sinar Technologies, Inc. *		2,070		42,414
Rogers Corp. *		1,104		30,305
Sanmina-SCI Corp. *		5,658		93,583
ScanSource, Inc. *		1,932		50,232
SeaChange International, Inc. *		2,139		15,144
ShoreTel, Inc. *		1,409		8,454
Silicon Graphics International Corp. *		1,961		21,061

76 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Smart Modular Technologies (WWH), Inc. *		2,967		18,989
Sonus Networks, Inc. *		14,657		31,219
STEC, Inc. *		2,553		26,245
Stratasys, Inc. *		1,475		38,896
Sycamore Networks, Inc.		1,381		26,598
Synaptics, Inc. *		2,444		65,255
SYNNEX Corp. *		1,449		41,499
Tech Data Corp. *		3,617		154,952
Technitrol, Inc.		2,720		11,968
Tekelec *		4,761		78,652
TTM Technologies, Inc. *		3,105		26,517
Universal Display Corp. *		2,277		23,977
UTStarcom, Inc. *		8,102		17,662
ViaSat, Inc. *		2,234		67,914
Vishay Intertechnology, Inc. *		12,282		125,890
Zebra Technologies Corp., Class A *		4,238		121,080

				5,636,101

Telecommunication Services 0.9%
AboveNet, Inc. *		1,547		94,553
Alaska Communications Systems Group, Inc.		3,134		22,753
Atlantic Tele-Network, Inc.		690		30,277
Cbeyond, Inc. *		1,794		22,246
Cincinnati Bell, Inc. *		14,559		43,095
Cogent Communications Group, Inc. *		3,016		29,677
Consolidated Communications Holdings, Inc.		1,705		28,712
General Communication, Inc., Class A *		2,858		15,690
Global Crossing Ltd. *		2,208		31,464
ICO Global Communications (Holdings) Ltd. *		8,143		8,957
Iowa Telecommunications Services, Inc.		2,372		38,308
Leap Wireless International, Inc. *		4,445		63,430
Neutral Tandem, Inc. *		2,415		38,930
NTELOS Holdings Corp.		2,070		35,356
PAETEC Holding Corp. *		9,315		36,887
Premiere Global Services, Inc. *		4,376		32,907
Shenandoah Telecommunications Co.		1,685		30,381
SureWest Communications *		966		8,308
Syniverse Holdings, Inc. *		4,968		83,562
tw telecom, Inc. *		10,695		169,943
USA Mobility, Inc.		1,616		18,196

				883,632

Transportation 2.8%
AirTran Holdings, Inc. *		9,688		46,696
Alaska Air Group, Inc. *		2,553		89,355
Alexander & Baldwin, Inc.		2,993		96,315
Allegiant Travel Co. *		995		51,879
AMERCO *		414		21,706
American Commercial Lines, Inc. *		690		16,042
AMR Corp. *		23,943		220,036
Arkansas Best Corp.		1,656		43,453
Atlas Air Worldwide Holdings, Inc. *		1,202		54,186
Avis Budget Group, Inc. *		7,314		76,943
Con-way, Inc.		3,519		114,332
Continental Airlines, Inc., Class B *		9,936		205,278
Dollar Thrifty Automotive Group, Inc. *		1,823		54,763
Eagle Bulk Shipping, Inc. *		4,444		23,242
Excel Maritime Carriers Ltd. *		3,519		20,727
Forward Air Corp.		2,070		50,632
Genco Shipping & Trading Ltd. *		2,001		42,021
Genesee & Wyoming, Inc., Class A *		2,720		86,632
Hawaiian Holdings, Inc. *		3,686		28,677
Heartland Express, Inc.		4,002		61,271
Horizon Lines, Inc., Class A		2,139		8,642
Hub Group, Inc., Class A *		2,691		72,576
JetBlue Airways Corp. *		17,595		92,902
Kirby Corp. *		3,864		127,551
Knight Transportation, Inc.		4,209		83,128
Landstar System, Inc.		3,657		145,878
Marten Transport Ltd. *		1,064		20,046
Old Dominion Freight Line, Inc. *		2,208		67,874
Pacer International, Inc. *		2,622		12,612
Patriot Transportation Holding, Inc. *		138		12,292
RailAmerica, Inc. *		1,587		18,790
Republic Airways Holdings, Inc. *		2,444		14,884
SkyWest, Inc.		4,140		61,106
UAL Corp. *		12,035		206,400
Universal Truckload Services, Inc.		394		7,009
US Airways Group, Inc. *		11,620		85,175
UTI Worldwide, Inc.		7,202		107,526
Werner Enterprises, Inc.		3,657		81,588
YRC Worldwide, Inc. *		5,900		2,720

				2,632,885

Utilities 2.3%
ALLETE, Inc.		2,070		65,102
American States Water Co.		1,311		42,162
Avista Corp.		3,933		80,076
Black Hills Corp.		2,809		78,287
California Water Service Group		1,380		49,514
Central Vermont Public Service Corp.		759		14,922
CH Energy Group, Inc.		1,104		44,149
Chesapeake Utilities Corp.		690		20,672
Cleco Corp.		4,347		109,718
Connecticut Water Service, Inc.		621		13,979
El Paso Electric Co. *		3,243		65,249
Great Plains Energy, Inc.		9,729		173,274
Hawaiian Electric Industries, Inc.		6,584		134,116
IDACORP, Inc.		3,381		111,674
MGE Energy, Inc.		1,656		54,896
Middlesex Water Co.		966		15,987
New Jersey Resources Corp.		3,036		110,571
Nicor, Inc.		3,243		135,071
Northwest Natural Gas Co.		1,932		84,989
NorthWestern Corp.		2,602		65,180
Ormat Technologies, Inc.		1,311		37,927
PNM Resources, Inc.		5,658		69,141
Portland General Electric Co.		5,382		96,822
SJW Corp.		966		21,677
South Jersey Industries, Inc.		2,139		85,282
Southwest Gas Corp.		3,174		90,713
The Empire District Electric Co.		2,582		46,244
The Laclede Group, Inc.		1,449		47,513
UIL Holdings Corp.		2,139		58,780

See financial notes 77

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Unisource Energy Corp.		2,553		74,394
WGL Holdings, Inc.		3,588		117,866

				2,215,947

Total Common Stock (Cost $91,585,968)				94,469,357




Other Investment Company 0.1% of net assets


State Street Institutional Liquid Reserves Fund		90,215		90,215

Total Other Investment Company (Cost $90,215)				90,215




Rights 0.0% of net assets

Telecommunication Services 0.0%
ICO Global Communications (Holdings) Ltd. *		7,435		612

Total Rights (Cost $—)				612



End of Investments

At 02/28/10, the tax basis cost of the fund’s investments was $91,688,447 and the unrealized appreciation and depreciation were $5,317,585 and ($2,445,848), respectively, with a net unrealized appreciation of $2,871,737.


*		Non-income producing security.

78 See financial notes

Schwab U.S. Small-Cap ETF

Statement of

Assets and Liabilities

As of February 28, 2010 (unaudited)




Assets
Investments, at value (cost $91,676,183)		$94,560,184
Receivables:
Dividends		67,925
Interest	+	9


Total assets		94,628,118


Liabilities
Payables:
Investments bought		32,852
Investment adviser and administrator fees	+	1,240


Total liabilities		34,092


Net Assets
Total assets		94,628,118
Total liabilities	—	34,092


Net assets		$94,594,026
Net Assets by Source
Capital received from investors		91,635,841
Net investment income not yet distributed		106,544
Net realized capital losses		(32,360	)
Net unrealized capital gains		2,884,001

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$94,594,026

3,450,001

$27.42

See financial notes 79

Schwab U.S. Small-Cap ETF

Statement of

Operations

For October 30, 2009* through February 28, 2010 (unaudited)




Investment Income
Dividends (net of foreign withholding tax of $3)		$220,766
Interest	+	33


Total investment income		220,799


Expenses
Investment adviser and administrator fees		24,255


Total expenses		24,255


Net investment income		196,544


Realized and Unrealized Gains (Losses)
Net realized losses on investments		(32,360	)
Net unrealized gains on investments	+	2,884,001


Net realized and unrealized gains		2,851,641


Net increase in net assets resulting from operations		$3,048,185


*	Commencement of operations.

80 See financial notes

Schwab U.S. Small-Cap ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on October 30, 2009, it has no prior report period.

Figures for the current period are unaudited.




Operations


		*10/30/09-02/28/10**
Net investment income		$196,544
Net realized losses		(32,360)
Net unrealized gains	+	2,884,001


Net Increase in net assets resulting from operations		$3,048,185


Distributions to Shareholders
Distributions from net investment income		$90,000




Transactions in Fund Shares


		*10/30/09-02/28/10**
		SHARES		VALUE
Shares Sold			3,450,001		$91,635,841
Shares Redeemed	+		—		—


Net transactions in fund shares			3,450,001		$91,635,841




Shares Outstanding and Net Assets


		*10/30/09-02/28/10**
		SHARES		NET ASSETS
Beginning of period			—		$—
Total increase	+		3,450,001		94,594,026


End of period			3,450,001		$94,594,026



Net investment income not yet distributed					$106,544


*	Commencement of operations.

See financial notes 81

Schwab U.S. ETFs

Financial Notes, unaudited

1. Business Structure of the Funds

Each of the funds discussed in this report is a series of Schwab Strategic Trust (the “trust”), a no-load, open-end management investment company. The trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The list below shows all the funds in the trust including the funds discussed in this report, which are highlighted:



Schwab Strategic Trust (organized January 27, 2009) Schwab U.S. Broad Market ETF Schwab U.S. Large-Cap ETF Schwab U.S. Large-Cap Growth ETF Schwab U.S. Large-Cap Value ETF Schwab U.S. Small-Cap ETF		Schwab International Equity ETF Schwab International Small-Cap Equity ETF Schwab Emerging Markets Equity ETF

The funds issue and redeem shares at their NAV only in large blocks of shares, typically 50,000 shares or more (“Creation Units”). These transactions are usually in exchange for a basket of securities and an amount of cash. As a practical matter, only institutions purchase or redeem Creation Units. Except when aggregated in Creation Units, shares of the fund are not redeemable securities.

Fund shares may be bought and sold in the secondary market at market prices. Although it is expected that the market price of the shares of each fund will approximate its NAV, there may be times when the market price and the NAV vary significantly.

Schwab U.S. Broad Market ETF, Schwab U.S. Large-Cap ETF and Schwab U.S. Small-Cap ETF commenced operations on October 30, 2009. Schwab U.S. Large-Cap Growth ETF and Schwab U.S. Large-Cap Value ETF commenced operations on December 9, 2009.

Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law.

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the funds use in the preparation of their financial statements. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

(a) Security Valuation:

The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:


	•	Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, halfway between the most recent bid and asked quotes. Securities that are primarily traded on foreign exchanges are valued at the closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the valuation date exchange rate.

	•	Securities for which no quoted value is available: The Board of Trustees has adopted procedures to fair value each fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when a security is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price when a security’s primary trading market is closed during regular market hours. Each fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Board of Trustees regularly reviews fair value determinations made by the funds pursuant to the procedures.

	•	Short-term securities (60 days or less to maturity): valued at amortized cost, which approximates market value.

	•	Underlying funds: valued at their respective net asset values as determined by those funds in accordance with the 1940 Act for a given day.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

or liabilities (level 1 measurement) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (level 3 measurements).

The funds adopted the authoritative guidance under GAAP on determining fair value when the volume and level of activity for the asset or liability have significantly decreased and identifying transactions that are not orderly. Accordingly, if the funds determine that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

The guidance establishes three levels of the fair value hierarchy as follows:


	•	Level 1 — quoted prices in active markets for identical securities. — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities. The funds do not adjust the quoted price for such investments, even in situations where the funds hold a large position and a sale could reasonably impact the quoted price.

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

	•	Level 3 — significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments). — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the funds’ results of operations.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the funds’ investments as of February 28, 2010:

Schwab U.S. Broad Market ETF


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$150,838,846		$—		$—		$150,838,846
Other Investment Company		60,408		—		—		60,408
Rights(a)		453		—		—		453

Total		$150,899,707		$—		$—		$150,899,707

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

Schwab U.S. Large-Cap ETF


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$116,211,086		$—		$—		$116,211,086
Other Investment Company		86,101		—		—		86,101
Rights(a)		160		—		—		160

Total		$116,297,347		$—		$—		$116,297,347

Schwab Large-Cap Growth ETF


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$59,289,366		$—		$—		$59,289,366
Other Investment Company		53,713		—		—		53,713
Rights(a)		78		—		—		78

Total		$59,343,157		$—		$—		$59,343,157

Schwab U.S. Large-Cap Value ETF


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$33,888,878		$—		$—		$33,888,878
Other Investment Company		21,560		—		—		21,560

Total		$33,910,438		$—		$—		$33,910,438

Schwab U.S. Small-Cap ETF


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$94,469,357		$—		$—		$94,469,357
Other Investment Company		90,215		—		—		90,215
Rights(a)		612		—		—		612

Total		$94,560,184		$—		$—		$94,560,184


*		The fund had no Other Financial Instruments.
(a)		as categorized in Portfolio Holdings

(b) Security Transactions:

Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(c) Investment Income:

Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the day they learn of the ex-dividend date.

(d) Expenses:

Expenses that are specific to a fund within the trust are charged directly to that fund. Expenses that are common to all funds within the trust generally are allocated among the funds in proportion to their average daily net assets.

(e) Distributions to Shareholders:

The funds make distributions from net investment income every quarter and net realized capital gains, if any, once a year.

(f) Accounting Estimates:

The accounting policies described in this report conform with accounting principles generally accepted in the United States of America. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates.

(g) Federal Income Taxes:

The funds intend to meet federal income and excise tax requirements for regulated investment companies. Accordingly, the funds distribute substantially all of their net investment income and realized net capital gains (if any) to their respective shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax.

(h) Indemnification:

Under the funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss to be remote.

3. Risk factors:

Investing in the funds may involve certain risks, as described in the funds’ prospectus, including, but not limited to, those described below:

Stock markets rise and fall daily. As with any investment whose performance is tied to these markets, the value of the investments in a fund will fluctuate, which means that the investors could lose money.

The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. In addition, the equity market tends to move in cycles which may cause stock prices to fall over short or extended periods of time.

The funds are not actively managed. Therefore, the funds follow the stocks included in the index during upturns as well as downturns. Because of its indexing strategy, the funds do not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of the fund’s expenses, the funds’ performance is normally below that of the index.

Historically, small and mid company stocks have been riskier than large company stocks. Stock prices of smaller companies may be based in substantial part on future expectations rather than current achievements and may move sharply, especially during market upturns and downturns. Smaller companies themselves may be more vulnerable to adverse business or economic events than larger, more established companies. During a period when small-cap stocks fall behind other types of investments — bonds,

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

3. Risk factors (continued):

large-cap stocks and mid-cap stocks — a fund’s performance, to the extent invested in small-cap stocks, also will lag those other types of investments.

A fund may not fully replicate the index and may hold securities not included in the index. As a result, the fund is subject to the risk that the Adviser’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. Because the fund utilizes a sampling approach it may not track the return of the index as well as it would if the fund purchased all of the equity securities in the index.

The funds’ returns may not match the return of their indices. For example, differences between a funds securities and those in the index, rounding of prices, changes to the index and regulatory requirements may cause tracking error, the divergence of a fund’s performance from that of its index. A fund may not be able to invest in certain securities in its benchmark index, or match the securities’ weighting to the benchmark, due to regulatory, operational or liquidity constraints, which may result in tracking error. A fund may attempt to offset the effects of not being invested in certain index securities by making substitute investments, but these efforts may not be successful. A fund also incurs fees and expenses while the index does not, which may result in tracking error.

A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments and could cause the fund to lose more than the principal amount invested. In addition, investments in derivatives may involve leverage, which means a small percentage of assets invested in derivatives can have a disproportionately larger impact on the fund.

To the extent that the funds or the indices portfolios are concentrated in the securities of issuers in a particular market, industry, group of industries, sector or asset class, the funds may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector or asset class.

A particular investment may be difficult to purchase or sell. The funds may be unable to sell illiquid securities at an advantageous time or price.

A fund may lend its portfolio securities to brokers, dealers, and other financial institutions provided a number of conditions are satisfied, including that the loan is fully collateralized. Securities lending involves the risk of loss of rights in the collateral or delay in recovery of the collateral if the borrower fails to return the security loaned or becomes insolvent.

Fund shares may be bought and sold in the secondary market at market prices. Although it is expected that the market price of the shares of the fund will approximate the fund’s NAV, there may be times when the market price and the NAV vary significantly. Investors may pay more than NAV when they buy shares of the fund in the secondary market, and may receive less than NAV when they sell those shares in the secondary market.

An investment in a fund is not a bank deposit and it is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other governmental agency.

Please refer to the funds’ prospectus for a complete description of the principal risks of investing in the funds.

4. Affiliates and Affiliated Transactions:

Charles Schwab Investment Management, Inc. (“CSIM” or the “investment adviser”), a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement (Advisory Agreement) between it and the trust.

For its advisory and administrative services to each fund, the investment adviser is entitled to receive an annual fee payable monthly based on the fund’s average daily net assets described as follows:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Market ETF

Large-Cap ETF

Growth ETF

Value ETF

Small-Cap ETF

0.08%

0.15%

The investment adviser will pay the operating expenses of the funds, excluding interest expenses, taxes, any brokerage expenses, and extraordinary or non-routine expenses.

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Prior to December 14, 2009, the Trust had a Distribution and Shareholder Services (12b-1) Plan (the “Plan”) pursuant to which the fund was subject to an annual 12b-1 fee of up to 0.25% of its average daily net assets. The Board had determined that no such fees would be charged prior to November 14, 2011. However, on December 14, 2009, the Board of Trustees of the Trust approved the termination of the Plan.

The funds may engage in certain transactions involving affiliates. Below is a summary of transactions involving shares of The Charles Schwab Corporation during the period ended February 28, 2010:


	Balance of
	Shares							Balance		Market		Realized		Dividends
	Held at							of Shares		Value		Gain (Loss)		Received
	Beginning		Gross		Gross			Held at		at		During		During
Fund	of Period¹		Additions		Sales			2/28/2010		2/28/2010		Period		Period

Schwab U.S. Broad Market ETF		—		11,730		—			11,730		$214,776		$—		$697
Schwab U.S. Large-Cap ETF		—		10,371		—			10,371		189,893		—		545
Schwab U.S. Large-Cap Growth ETF		—		12,279		(1,212	)		11,067		202,637		267		673


¹		Schwab U.S. Broad Market ETF and Schwab U.S. Large-Cap ETF commenced operations on October 30, 2009. Schwab U.S. Large-Cap Growth ETF commenced operations on December 9, 2009.

The funds may make direct transactions with certain other Schwab ETFs when practical. When one fund is seeking to sell a security that another is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs. This practice is limited to funds that share the same investment adviser, trustees and officers. As of February 28, 2010, there were no security transactions with other Schwab ETFs.

Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions within the Schwab Funds, including Schwab ETFs. All loans are for temporary or emergency purposes only. The interest rate charged on the loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. The interfund lending facility is subject to the oversight and periodic review of the Board of Trustees of the Schwab Funds, and separately by the Board of Trustees of the Schwab ETFs. There was no interfund borrowing or lending activity for the funds during the period.

5. Other Service Providers:

SEI Investments Distribution Co. (the “Distributor”) is the principal underwriter and distributor of shares of the funds.

State Street Bank and Trust Company serves as the funds’ transfer agent. As part of these services, the transfer agent maintains records pertaining to the sale, redemption and transfer of the funds’ shares.

State Street Bank and Trust Company also serves as custodian and accountant for the funds. The custodian is responsible for the daily safekeeping of securities and cash held or sold by the funds. The funds’ accountant maintains all books and records related to the funds’ transactions.

6. Board of Trustees:

Trustees may include people who are officers and/or directors of the investment adviser or an affiliate. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of these persons for their service as trustees.

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

7. Purchases and Sales of Investment Securities:

For the period ended February 28, 2010, purchases and sales of securities (excluding in-kind transactions and short-term obligations) were as follows:


	Purchases of Securities		Sales/Maturities of Securities

Schwab U.S. Broad Market ETF		$2,355,732		$1,295,707
Schwab U.S. Large-Cap ETF		1,744,376		835,173
Schwab U.S. Large-Cap Growth ETF		767,655		145,893
Schwab U.S. Large-Cap Value ETF		475,305		289,376
Schwab U.S. Small-Cap ETF		2,342,214		1,531,256

8. In-Kind Transactions:

The consideration for the purchase of Creation Units of a fund generally consists of the in-kind deposit of a designated portfolio of equity securities, which constitutes an optimized representation of the securities involved in a relevant fund’s underlying index, and an amount of cash. Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.

The in-kind transactions for the period ended February 28, 2010 were as follows:


	In-kind Purchases		In-kind Sales

Schwab U.S. Broad Market ETF		$149,158,820		$—
Schwab U.S. Large-Cap ETF		115,244,342		—
Schwab U.S. Large-Cap Growth ETF		65,108,248		6,452,429
Schwab U.S. Large-Cap Value ETF		33,798,705		—
Schwab U.S. Small-Cap ETF		90,973,130		—

For the period ended February 28, 2010, certain funds realized net capital gains or losses resulting from in-kind redemptions of large blocks of shares or multiples thereof (“Creation Units”). Because such gains or losses are not taxable to the funds and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to paid-in-capital at the end of the funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized in-kind gains or losses for the period ended February 28, 2010 are disclosed in the funds’ Statements of Operations.

9. Subsequent Events:

Management has determined there are no subsequent events or transactions that would have materially impacted the financial statements as presented.

Investment Advisory Agreement Approval

The Investment Company Act of 1940 (the “1940 Act”) requires that initial approval of, as well as the continuation of, a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.

Initial Approval of Investment Advisory Agreement

The Board of Trustees (the “Board” or the “Trustees”, as appropriate) called and held a meeting on October 12, 2009, in part, for the purpose of considering whether to appoint Charles Schwab Investment Management, Inc. (“CSIM”) as investment adviser to the Schwab U.S. Broad Market ETF, Schwab U.S. Large-Cap ETF, Schwab U.S. Large-Cap Growth ETF, Schwab U.S. Large-Cap Value ETF, Schwab U.S. Small-Cap ETF under the investment advisory agreement between Schwab Strategic Trust (the “Trust’) and CSIM (the “Agreement”). In preparation for the meeting, the Board requested and reviewed a variety of materials provided by CSIM with respect to the services to be provided to the funds under the Agreement. The Independent Trustees received advice from fund counsel to the Independent Trustees, including a memorandum regarding the responsibilities of Trustees for the approval of investment advisory agreements. In addition, the Independent Trustees met in executive session outside the presence of fund management and participated in question and answer sessions with representatives of CSIM.

The Board, including a majority of the Independent Trustees approved the Agreement with respect to the funds. The Board’s approval was based on consideration and evaluation of a variety of specific factors discussed at this meeting, including:


1.	the nature, extent and quality of the services to be provided to the funds under the Agreement, including the resources of CSIM and its affiliates dedicated to the funds;

2.	CSIM’s investment performance in managing other funds having relevant investment objectives and strategies;

3.	each fund’s estimated expenses and how those expenses compared to those of certain other comparable exchange-traded funds;

4.	the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (“Schwab”), with respect to management of other funds, including both direct and indirect benefits accruing to CSIM and its affiliates; and

5.	the extent to which economies of scale would be realized as the funds grow and whether fee levels in the Agreement relating to the funds reflect those economies of scale for the benefit of fund investors.

Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services to be provided by CSIM to the funds and the resources of CSIM and its affiliates will dedicate to the funds. In this regard, the trustees evaluated, among other things, CSIM’s personnel, experience, track record and compliance program. The trustees also considered the fact that Schwab’s extensive branch network, Internet access, investment and research tools, telephone services, and array of account features may be expected to benefit the funds and its shareholders. The trustees also considered Schwab’s excellent reputation as a full service brokerage firm and its overall financial condition. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services to be provided by CSIM to the funds and the resources of CSIM and its affiliates dedicated to the fund supported approval of the Agreement with respect to the funds.

Performance. With regard to fund performance, since the funds had not commenced operations and therefore did not have any performance of their own, the Board considered performance of other funds having comparable investment objectives in determining whether to approve the Agreement. The trustees also considered both risk and shareholder risk expectations for the funds and the appropriateness of the benchmark that would be used to compare the performance of the funds. Following such evaluation the Board concluded, within the context of its full deliberations, that the performance of CSIM supported approval of the Agreement with respect to the funds.

Fund Expenses. With respect to each fund’s expenses, the trustees considered the rate of compensation called for by the Agreement, and each fund’s estimated net operating expense ratio in comparison to those of other comparable exchange-traded funds. The Board evaluated the funds’ unitary fee through review of comparative information with respect to fees paid by similar exchange-traded funds tracking equity indexes. Following such evaluation, the Board concluded, within the context of its

full deliberations, that the expenses of the funds are reasonable and supported approval of the Agreement with respect to the funds.

Profitability. With regard to profitability, the trustees considered the compensation flowing to CSIM and its affiliates, directly or indirectly. The trustees also considered any other benefits derived by CSIM from its relationship with the funds, such as whether, by virtue of its management of the funds, CSIM obtains investment information or other research resources that aid it in providing advisory services to other clients. The trustees considered whether the varied levels of compensation and profitability under the Agreement and other service agreements were reasonable and justified in light of the quality of all services rendered to the funds by CSIM and its affiliates. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the expected profitability of CSIM, albeit uncertain, is reasonable and supported approval of the Agreement with respect to the funds.

Economies of Scale. Recognizing that the funds had not yet commenced operations and had no assets, the trustees considered the possible development of any economies of scale and whether those could be expected to be passed along to each fund’s shareholders through various efficiencies that may result from increases in the funds’ assets. The Board determined that such economies of scale will be shared by way of the relatively low advisory fee and unitary fee structure of the funds, although the Board will continue to monitor fees as the funds grow in size and assess whether breakpoints may be warranted. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the funds may be expected to obtain reasonable benefit from economies of scale if such economies develop.

In the course of their deliberations, the Trustees did not identify any particular information or factor that was all important or controlling. Based on the Trustees’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, unanimously approved the Agreement as it relates to the funds and concluded that the compensation under the Agreement relating to the funds is fair and reasonable in light of such services and expenses and such other matters as the trustees have considered to be relevant in the exercise of their reasonable judgment.

Trustees and Officers

The tables below give information about the trustees and officers for the Schwab Strategic Trust which includes the funds covered in this report. The “Fund Complex” includes the Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust. The Fund Complex includes 85 funds.

The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the Statement of Additional Information, which is available free by calling 1-800-435-4000.

Independent Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee	Other Directorships

Robert W. Burns⁴1959 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Retired. From 1987 – 2008: Managing Director, PIMCO (investment adviser); From 1994 – 2008: President and Trustee, PIMCO Funds (investments), and from 2007 – 2008: Chairman of PIMCO Strategic Global Government Fund, Inc (investments).	8	Independent Director and Chairman of Corporate Governance/Nominating Committee, PS Business Parks, Inc.


Mark A. Goldfarb⁴1952 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Founder and Managing Director, SS&G Financial Services (financial services firm).	8	None


Charles A. Ruffel⁴1956 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Advisor, Asset International, Inc. (provider of financial services information). Chief Executive Officer and Founder, Asset International, Inc. Until 2008, Managing Partner and Co-Founder, Kudu Advisors, LLC.	8	None

Interested Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served )	During the Past Five Years	the Trustee	Other Directorships

Walter W. Bettinger II²1960 Trustee (Trustee of Schwab Strategic Trust since 2009.)	As of October 2008, President and Chief Executive Officer, Charles Schwab & Co., Inc., principal underwriter to the funds, and The Charles Schwab Corporation. Since May 2008, Director, Charles Schwab & Co., Inc. and Schwab Holdings, Inc. Since 2006, Director, Charles Schwab Bank. Until October 2008, President and Chief Operating Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation. From 2004 through 2007, Executive Vice President and President, Schwab Investor Services. From 2004 through 2005, Executive Vice President and Chief Operating Officer, Individual Investor Enterprise, and from 2002 through 2004, Executive Vice President, Corporate Services.	85	None

Officers of the Trust


Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served³)		Principal Occupations During the Past Five Years

Randall W. Merk 1954 President and Chief Executive Officer (Officer of Schwab Strategic Trust since 2009.)		Executive Vice President and President, Investment Management Services, Charles Schwab & Co., Inc.; Executive Vice President, Charles Schwab & Co., Inc. (2002 – present); President and Chief Executive Officer, Charles Schwab Investment Management, Inc. (2007 – present); Director, Charles Schwab Asset Management (Ireland) Limited and Charles Schwab Worldwide Funds PLC.


George Pereira 1964 Treasurer and Principal Financial Officer (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President and Chief Financial Officer, Charles Schwab Investment Management, Inc.; Chief Financial Officer, Laudus Trust and Laudus Institutional Trust; Director, Charles Schwab Worldwide Fund, PLC and Charles Schwab Asset Management (Ireland) Limited. Through June 2007, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust; Chief Financial Officer, Mutual Fund Division, UST Advisers, Inc. From December 1999 to November 2004, Sr. Vice President, Financial Reporting, Charles Schwab & Co., Inc.


Jeffrey Mortimer 1963 Senior Vice President and Chief Investment Officer (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President and Chief Investment Officer — Equities & Fixed Income, Charles Schwab Investment Management, Inc.; President, Chief Executive Officer and Chief Investment Officer, Laudus Trust and Laudus Institutional Trust.


Koji E. Felton 1961 Secretary and Chief Legal Officer (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President, Chief Counsel and Corporate Secretary, Charles Schwab Investment Management, Inc.; Senior Vice President and Deputy General Counsel, Charles Schwab & Co., Inc. Until 2006, Chief Legal Officer, Laudus Trust and Laudus Institutional Trust. Through June 2007, Chief Legal Officer and Secretary, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust.


Catherine MacGregor 1964 Vice President (Officer of Schwab Strategic Trust since 2009.)		Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc., and Laudus Trust and Laudus Institutional Trust. Since 2006, Vice President, Chief Legal Officer and Clerk of Laudus Trust and Laudus Institutional Trust; Vice President, Schwab Funds.


Michael Haydel 1972 Vice President (Officer of Schwab Strategic Trust since 2009.)		Vice President, Asset Management Client Services, Charles Schwab & Co., Inc.; Vice President and AML Officer, Laudus Trust, Laudus Institutional Trust.


¹		Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The Trust’s retirement policy requires that independent trustees retire by December 31 of the year in which the Trustee turns 72 or the Trustee’s twentieth year of service as an independent trustee, whichever comes first.
²		Mr. Bettinger is an Interested Trustee because he is an employee of Schwab and/or the investment adviser. In addition to his employment with the investment adviser and Schwab, Mr. Bettinger also owns stock of The Charles Schwab Corporation.
³		The President, Treasurer and Secretary hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.
⁴		Member of the Audit and Compliance Committee and Nominating Committee.

Glossary

ask See “offer.”

asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage to help offset risks and rewards, based on your goals, time horizon and risk tolerance.

asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.

authorized participant (AP) A large institutional investor that places orders for creation units with the funds’ distributor.

beta A historical measure of an investment’s volatility relative to a market index (usually the S&P 500^®). The index is defined as having a beta of 1.00. Investments with a beta higher than 1.00 have been more volatile than the index; those with a beta of less than 1.00 have been less volatile.

bid The highest price at which someone is willing to buy a security.

cap, capitalization See “market cap.”

capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the gain or loss is still “on paper” and is considered unrealized.

commencement of operations The date that the first NAV was calculated.

creation unit (C.U.) A basket of securities that is delivered by an authorized participant (AP) to the fund equal to the current holdings of the ETF, plus a designated cash component. In return, the APs receive a large block of ETF shares (typically 50,000 shares), which investors can then buy and sell in the secondary market.

exchange A marketplace, or any organization or group that provides or maintains a marketplace for trading securities, options, futures, or commodities.

expense ratio The amount that is taken from the fund’s assets each year to cover the operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.

inception date The date that the shares began trading in the secondary market.

indicative optimized portfolio value (IOPV) A calculation disseminated by the stock exchange that approximates the fund’s NAV every 15 seconds throughout the trading day.

liquidity The ability to convert a security or asset quickly into cash.

market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.

market price return The return based on the change in market price per share of the fund over a given time period. Market price returns assume that dividends and capital gain distributions have been reinvested in the fund at market price.

median market cap The midpoint of the range of market caps of the stocks held by a fund. There are different ways of calculating median market cap. With a simple median, half of the stocks in the fund’s portfolio would be larger than the median, and half would be smaller.

net asset value (NAV) The value of one share of a fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding.

NAV return The return based on the change in NAV of the fund over a given time period. NAV returns assume that dividends and capital gain distributions have been reinvested in the fund.

offer (ask) The lowest price at which an individual is willing to sell a security.

open The price at which a security opened for trading on a given day.

outstanding shares, shares outstanding When speaking of the fund, indicates all shares currently held by investors.

price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.

price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.

primary market The market that deals with the issuance of new securities.

sampling If a fund uses a sampling method, the fund will not fully replicate the benchmark index and may hold securities not included in the index. A fund that utilizes a sampling approach may not track the return of the index.

secondary market The market in which investors purchase securities from other investors rather than directly from the issuing companies. Organized exchanges facilitate the trading of securities in the secondary market.

spread The gap between bid and ask prices of a security.

stock A share of ownership, or equity, in the issuing company.

total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.

tracking error The difference between the performance of the fund and its benchmark index, positive or negative.

Notes

Schwab ETFs^tmare designed to be low-cost, diversified investments. Each fund follows broad market indices and provides exposure to specific segments of the market making them solid investment options for the core portions of an investor portfolio. The list to the right shows all currently available Schwab ETFs.

Investors should carefully consider information contained in the prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-800-435-4000 for a prospectus and brochure for any Schwab ETF. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab ETFs’ website at www.schwabetfs.com, the SEC’s website at http://www.sec.gov, or by contacting Schwab ETFs at 1-800-435-4000.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the Schwab ETFs’ website at www.schwabetfs.com or the SEC’s website at http://www.sec.gov.

Schwab ETFs

U.S. ETFs

Schwab U.S. Broad Market ETF^tm

Schwab U.S. Large-Cap ETF^tm

Schwab U.S. Large-Cap Growth ETF^tm

Schwab U.S. Large-Cap Value ETF^tm

Schwab U.S. Small-Cap ETF^tm

International ETFs

Schwab International Equity ETF^tm

Schwab International Small-Cap Equity ETF^tm

Schwab Emerging Markets Equity ETF^tm

Investment Adviser

Charles Schwab Investment Management, Inc.

211 Main Street, San Francisco, CA 94105

Schwab ETFs^TM

1-800-435-4000

This report is not authorized for distribution to prospective investors

unless preceded or accompanied by a current prospectus.

Printed on recycled paper.

MFR54789-00

Semiannual report dated February 28, 2010 enclosed.

Schwab International ETFs

Schwab International

Equity ETF^tm

Schwab International Small-Cap

Equity ETF^tm

Schwab Emerging Markets

Equity ETF^tm

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Schwab International ETFs

Semiannual Report

February 28, 2010

Schwab International

Equity ETF^tm

Schwab International Small-Cap

Equity ETF^tm

Schwab Emerging Markets

Equity ETF^tm

In This Report


Performance at a Glance		1
From the President		2
Fund Management		3
Schwab International Equity ETF™		4
Schwab International Small-Cap Equity ETF™		6
Schwab Emerging Markets Equity ETF™		8
Fund Expenses		10
Financial Statements		11
Financial Notes		60
Investment Advisory Agreement Approval		68
Trustees and Officers		70
Glossary		72

Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: SEI Investments Distribution Co. (SIDCO).

Performance at a Glance


*Total Return from Inception to February 28, 2010**


Schwab International Equity ETF^tm (Ticker Symbol: SCHF)

NAV Return¹			-0.74%
Market Price Return¹			-0.25%
FTSE Developed ex-US Index			-0.82%
Fund Category: Morningstar Foreign Large-Cap Blend			0.25%

Performance Details			pages 4-5



Schwab International Small-Cap Equity ETF^tm (Ticker Symbol: SCHC)

NAV Return¹			-7.04%
Market Price Return¹			-6.32%
FTSE Developed Small Cap ex-US Liquid Index			-7.13%
Fund Category: Morningstar Foreign Small/Mid Growth			-7.71%

Performance Details			pages 6-7



Schwab Emerging Markets Equity ETF^tm (Ticker Symbol: SCHE)

NAV Return¹			-7.37%
Market Price Return¹			-6.33%
FTSE All-Emerging Index			-7.35%
Fund Category: Morningstar Diversified Emerging Markets			-7.17%

Performance Details			pages 8-9

Index ownership — “FTSE^®” is a trademark of The Financial Times Limited (“FT”) and the London Exchange plc (the “Exchange”) and is used by the fund under license. Schwab ETFs are not sponsored, endorsed, sold or promoted by FT or the Exchange and FT and the Exchange do not make any representation regarding the advisability of investing in shares of the fund.


*	Inception represents the date that the shares began trading in the secondary market. For the Schwab International Equity ETF, total returns are since inception date of 11/3/09. For the Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF, total returns are since inception date of 1/14/10.

¹	The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV return is based on the NAV of the fund, and the market return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.

From the President

Randall W. Merk is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.

Dear Shareholder,

I am pleased to present the inaugural semiannual report for the Schwab International Exchange-Traded Funds^tm (ETFs)—products that we recently launched as part of our ongoing effort to deliver solutions to help our clients achieve their investing goals.

For information on the performance of the individual funds contained in this report, please see the fund managers’ discussion and analysis in the following pages.

If you have any questions about Schwab Exchange-Traded Funds^tm, or any of our mutual funds, we are always available at 1-800-435-4000, and additional resources may be found on schwab.com.

Thank you for investing with us.

Sincerely,

Fund Management



		Jeffrey Mortimer, CFA, senior vice president and chief investment officer of the investment adviser, is responsible for the overall management of the funds. Prior to joining the firm in October 1997, he worked for more than eight years in asset management.

		Dustin Lewellyn, CFA, a managing director of the investment adviser, oversees the adviser’s management of ETFs. Prior to joining the firm in May 2009, he worked for two years as director of ETF product management and development at a major financial institution focused on asset and wealth management. Prior to that, he was a portfolio manager for institutional clients at a financial services firm for three years. In addition, he held roles in portfolio operations and product management at a large asset management firm for more than 6 years.

		Agnes Hong, CFA, a managing director and portfolio manager of the investment adviser, has day-to-day responsibility for the management of the funds. Prior to joining the firm in September 2009, she worked for more than 5 years as a portfolio manager for a major asset management firm.

Schwab International Equity ETF

The Schwab International Equity ETF seeks to track as closely as possible, before fees and expenses, the total return of the FTSE Developed ex-US Index, which is comprised of large and mid capitalization companies in developed countries outside the United States, as defined by the index provider.

During the reporting period that began with the fund’s inception date of November 3, 2009, and ended February 28, 2010, the fund’s market price return was -0.25% and its NAV return was -0.74%. The comparative index, the FTSE Developed ex-US Index, returned -0.82% during the same period. Unlike the fund, the index return is not inclusive of operational and transactional costs. You cannot invest directly in an index.

For an explanation of market price and NAV returns, please refer to footnote 3 on the following page.

As of 2/28/10:

Style Assessment¹

Country Weightings % of Investments


Japan		18.1%
United Kingdom		15.3%
France		9.2%
Australia		8.1%
Canada		7.9%
Switzerland		7.7%
Germany		6.6%
Netherlands		3.6%
Republic of Korea		3.5%
Spain		3.4%
Other Countries		16.6%
Total		100.0%

Statistics


Number of Holdings		817
Weighted Average Market Cap ($ x 1,000,000)		$45,861
Price/Earnings Ratio (P/E)		31.4
Price/Book Ratio (P/B)		1.5
Portfolio Turnover Rate³		2%

Sector Weightings % of Investments


Financials		25.1%
Materials		11.3%
Industrials		11.2%
Consumer Staples		9.5%
Energy		9.0%
Consumer Discretionary		8.8%
Health Care		7.2%
Information Technology		6.3%
Utilities		5.9%
Telecommunication Services		5.4%
Other		0.3%
Total		100.0%

Top Equity Holdings % of Net Assets²


Nestle S.A. - Reg’d		1.6%
HSBC Holdings plc		1.6%
BP plc		1.4%
Total S.A.		1.1%
Novartis AG - Reg’d		1.1%
Samsung Electronics Co., Ltd. GDR Reg’d		1.1%
Roche Holding AG		1.0%
BHP Billiton Ltd.		1.0%
Vodafone Group plc		1.0%
POSCO ADR		0.9%
Total		11.8%

Manager views and portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Source: Morningstar, Inc. This style assessment is the result of evaluating the fund based on a ten-factor model for value and growth characteristics. The fund’s market capitalization placement is determined by the geometric mean of its holdings’ market capitalizations. The assessment reflects the fund’s portfolio as of 2/28/10, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.
²		This list is not a recommendation of any security by the investment adviser.
³		Not annualized.

Schwab International Equity ETF^tm

Performance Summary as of 2/28/10

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabetfs.com.

November 3, 2009 – February 28, 2010
Performance of a Hypothetical
$10,000 Investment¹

Total Returns^1,2


Fund and Inception Date	Since Inception*


Fund: Schwab International Equity ETF^tm (11/3/09)
NAV Return³		-0.74	%
Market Price Return³		-0.25	%
FTSE Developed ex-US Index		-0.82	%
Fund Category: Morningstar Foreign Large Blend		0.25	%

Fund Expense Ratio⁴: 0.15%

International investing may involve risk of capital loss from unfavorable fluctuation in currency vales, from differences in generally accepted accounting principals, or from economic or political instability in other nations.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		Source for category information: Morningstar, Inc.
³		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV return is based on the NAV of the fund, and the market return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
⁴		As stated in the prospectus.

Schwab International Small-Cap Equity ETF

The Schwab International Small-Cap Equity ETF seeks to track as closely as possible, before fees and expenses, the total return of the FTSE Developed Small Cap ex-US Liquid Index, which is comprised of small capitalization companies in developed countries outside the United States, as defined by the index provider.

During the reporting period that began with the fund’s inception date of January 14, 2010, and ended February 28, 2010, the fund’s market price return was -6.32% and its NAV return was -7.04%. The comparative index, the FTSE Developed Small Cap ex-US Liquid Index, returned -7.13% during the same period. Unlike the fund, the index return is not inclusive of operational and transactional costs. You cannot invest directly in an index.

For an explanation of market price and NAV returns, please refer to footnote 3 on the following page.

As of 2/28/10:

Style Assessment¹

Country Weightings % of Investments


Canada		18.4%
United Kingdom		16.5%
Japan		13.9%
Switzerland		5.3%
Australia		5.2%
France		4.8%
Germany		4.8%
Sweden		4.2%
Hong Kong		3.0%
Republic of Korea		2.8%
Other Countries		21.1%
Total		100.0%

Statistics


Number of Holdings		894
Weighted Average Market Cap ($ x 1,000,000)		$2,410
Price/Earnings Ratio (P/E)		-228.0
Price/Book Ratio (P/B)		1.3
Portfolio Turnover Rate³		1%

Sector Weightings % of Investments


Industrials		23.2%
Financials		18.7%
Materials		14.5%
Consumer Discretionary		14.2%
Information Technology		7.4%
Energy		7.4%
Consumer Staples		5.3%
Health Care		5.1%
Utilities		2.8%
Telecommunication Services		1.1%
Other		0.3%
Total		100.0%

Top Equity Holdings % of Net Assets²


Korea Electric Power Corp. ADR		0.5%
POSCO ADR		0.5%
Crescent Point Energy Corp.		0.5%
Eldorado Gold Corp.		0.4%
Niko Resources Ltd.		0.4%
Silver Wheaton Corp.		0.4%
IAMGOLD Corp.		0.4%
KB Financial Group, Inc. ADR		0.4%
Tim Hortons, Inc.		0.3%
Groupe Eurotunnel S.A. Reg’d		0.3%
Total		4.1%

Manager views and portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Source: Morningstar, Inc. This style assessment is the result of evaluating the fund based on a ten-factor model for value and growth characteristics. The fund’s market capitalization placement is determined by the geometric mean of its holdings’ market capitalizations. The assessment reflects the fund’s portfolio as of 2/28/10, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.
²		This list is not a recommendation of any security by the investment adviser.
³		Not annualized.

Schwab International Small-Cap Equity ETF^tm

Performance Summary as of 2/28/10

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabetfs.com.

January 14, 2010 – February 28, 2010
Performance of a Hypothetical
$10,000 Investment¹

Total Returns^1,2


Fund and Inception Date	Since Inception*


Fund: Schwab International Small-Cap Equity ETF^tm (1/14/10)
NAV Return³		-7.04	%
Market Price Return³		-6.32	%
FTSE Developed Small Cap ex-US Liquid Index		-7.13	%
Fund Category: Morningstar Foreign Small/Mid Growth		-7.71	%

Fund Expense Ratio⁴: 0.35%

Investments in smaller companies typically exhibit higher volatility.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		Source for category information: Morningstar, Inc.
³		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV return is based on the NAV of the fund, and the market return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
⁴		As stated in the prospectus.

Schwab Emerging Markets Equity ETF

The Schwab Emerging Markets Equity ETF seeks to track as closely as possible, before fees and expenses, the total return of the FTSE All-Emerging Index, which is comprised of large and mid capitalization companies in emerging market countries, as defined by the index provider.

During the reporting period that began with the fund’s inception date of January 14, 2010, and ended February 28, 2010, the fund’s market price return was -6.33% and its NAV return was -7.37%. The comparative index, the FTSE All-Emerging Index, returned -7.35% during the same period. Unlike the fund, the index return is not inclusive of operational and transactional costs. You cannot invest directly in an index.

For an explanation of market price and NAV returns, please refer to footnote 3 on the following page.

As of 2/28/10:

Style Assessment¹

Country Weightings % of Investments


Brazil		19.2%
China		12.0%
Taiwan		11.5%
India		11.2%
South Africa		9.2%
Russia		6.9%
Mexico		5.6%
Hong Kong		5.4%
Malaysia		4.1%
United States		3.3%
Other Countries		11.6%
Total		100.0%

Statistics


Number of Holdings		491
Weighted Average Market Cap ($ x 1,000,000)		$96,165
Price/Earnings Ratio (P/E)		16.1
Price/Book Ratio (P/B)		1.5
Portfolio Turnover Rate³		1%

Sector Weightings % of Investments


Financials		24.6%
Energy		16.2%
Materials		14.9%
Telecommunication Services		9.8%
Information Technology		8.8%
Industrials		6.8%
Consumer Staples		6.3%
Consumer Discretionary		4.2%
Utilities		3.5%
Health Care		1.0%
Other		3.9%
Total		100.0%

Top Equity Holdings % of Net Assets²


Petroleo Brasileiro S.A., Preferred		2.3%
Vale S.A., A Shares		1.8%
Gazprom ADR		1.8%
Petroleo Brasileiro S.A., Common		1.7%
China Mobile Ltd.		1.7%
Taiwan Semiconductor Manufacturing Co., Ltd.		1.6%
Vale S.A.		1.6%
Itau Unibanco Holding S.A.		1.5%
America Movil S.A.B. de C.V., Series L		1.5%
China Construction Bank Corp., H Shares		1.2%
Total		16.7%

Manager views and portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Source: Morningstar, Inc. This style assessment is the result of evaluating the fund based on a ten-factor model for value and growth characteristics. The fund’s market capitalization placement is determined by the geometric mean of its holdings’ market capitalizations. The assessment reflects the fund’s portfolio as of 2/28/10, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.
²		This list is not a recommendation of any security by the investment adviser.
³		Not annualized.

Schwab Emerging Markets Equity ETF^tm

Performance Summary as of 2/28/10

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabetfs.com.

January 14, 2010 – February 28, 2010
Performance of a Hypothetical
$10,000 Investment¹

Total Returns^1,2


Fund and Inception Date	Since Inception*


Fund: Schwab Emerging Markets Equity ETF^tm (1/14/10)
NAV Return³		-7.37	%
Market Price Return³		-6.33	%
FTSE All-Emerging Index		-7.35	%
Fund Category: Morningstar Diversified Emerging Markets		-7.17	%

Fund Expense Ratio⁴: 0.35%

Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		Source for category information: Morningstar, Inc.
³		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV return is based on the NAV of the fund, and the market return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
⁴		As stated in the prospectus.

Fund Expenses (Unaudited)

Examples for a $1,000 Investment


					Ending
					Account Value
	Expense Ratio		Beginning		(Net of Expenses)		Expenses Paid
	(Annualized)		Account Value		at 2/28/10		During Period



Schwab International Equity ETF^tm¹
Actual Return		0.15%	$	1,000	$	992.60	$	0.48
Hypothetical 5% Return		0.15%	$	1,000	$	1,015.68	$	0.49


Schwab International Small-Cap Equity ETF^tm²
Actual Return		0.35%	$	1,000	$	929.60	$	0.43
Hypothetical 5% Return		0.35%	$	1,000	$	1,005.86	$	0.44


Schwab Emerging Markets Equity ETF^tm²
Actual Return		0.35%	$	1,000	$	926.30	$	0.42
Hypothetical 5% Return		0.35%	$	1,000	$	1,005.86	$	0.44


¹	Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 118 days of the period, and divided by the 365 days of the fiscal year. The fund’s inception date was 11/3/09.

²	Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 46 days of the period, and divided by the 365 days of the fiscal year. The fund’s inception date was 1/14/10.

10 Schwab International ETFs

Schwab International Equity ETF ^tm

Financial Statements

Financial Highlights


	10/30/09¹–
	2/28/10*


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.08
Net realized and unrealized gains (losses)		(0.58	)

Total from investment operations		(0.50	)
Less distributions:
Distributions from net investment income		(0.04	)

Net asset value at end of period		24.46

Total return (%)		(2.01	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.15	³
Gross operating expenses		0.15	³
Net investment income (loss)		1.36	³
Portfolio turnover rate⁴		2	²
Net assets, end of period ($ x 1,000)		144,287

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Portfolio turnover rate excludes securities received or delivered from processing of in kind creations or redemptions.

See financial notes 11

Schwab International Equity ETF

Portfolio Holdings as of February 28, 2010 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	99	.3%	Common Stock		149,794,954		143,309,318
	0	.3%	Other Investment Company		470,220		470,220
	0	.2%	Preferred Stock		264,302		254,398
		—%	Rights		—		2,427


	99	.8%	Total Investments		150,529,476		144,036,363
	0	.2%	Other Assets and Liabilities, Net				250,723


	100	.0%	Net Assets				144,287,086


	Number		Value
Security	of Shares		($)

Common Stock 99.3% of net assets

Australia 8.1%


Banks 2.2%
Australia & New Zealand Banking Group Ltd.		29,736		616,185
Bank of Queensland Ltd.		2,832		27,567
Bendigo & Adelaide Bank Ltd.		5,546		47,777
Commonwealth Bank of Australia		19,352		934,418
National Australia Bank Ltd.		26,904		612,914
Westpac Banking Corp.		36,816		861,473

				3,100,334


Capital Goods 0.1%
CSR Ltd.		11,918		17,289
GWA International Ltd.		10,325		28,478
Leighton Holdings Ltd.		1,357		45,813

				91,580


Commercial & Professional Services 0.1%
Brambles Ltd.		20,591		127,968
Downer EDI Ltd.		5,782		40,905
Spotless Group Ltd.		9,145		23,831

				192,704


Consumer Durables & Apparel 0.0%
Billabong International Ltd.		3,186		29,016


Consumer Services 0.2%
Aristocrat Leisure Ltd.		6,431		24,360
Crown Ltd.		8,024		57,484
Flight Centre Ltd.		1,121		18,943
TABCORP Holdings Ltd.		16,107		97,649
Tatts Group Ltd.		47,259		101,569

				300,005


Diversified Financials 0.2%
ASX Ltd.		2,655		86,686
Challenger Financial Services Group Ltd.		5,546		19,071
IOOF Holdings Ltd.		5,015		27,529
Macquarie Group Ltd.		4,071		164,999
Perpetual Ltd.		413		13,433

				311,718


Energy 0.5%
New Hope Corp., Ltd.		4,720		18,936
Origin Energy Ltd.		11,446		172,301
Paladin Energy Ltd. *		8,142		26,321
Santos Ltd.		10,620		123,252
Woodside Petroleum Ltd.		6,381		247,824
WorleyParsons Ltd.		2,360		51,947

				640,581


Food & Staples Retailing 0.6%
AWB Ltd. *		13,865		12,664
Metcash Ltd.		18,231		67,263
Wesfarmers Ltd.		13,157		366,776
Wesfarmers Ltd., Price Protected Shares		2,537		70,906
Woolworths Ltd.		16,756		402,734

				920,343


Food, Beverage & Tobacco 0.2%
Coca-Cola Amatil Ltd.		11,682		117,375
Foster’s Group Ltd.		31,742		153,210
Goodman Fielder Ltd.		30,090		40,553

				311,138


Health Care Equipment & Services 0.1%
Ansell Ltd.		472		4,831
Cochlear Ltd.		472		26,819
Sigma Pharmaceuticals Ltd. (a)		21,594		17,404
Sonic Healthcare Ltd.		3,717		45,102

				94,156


Insurance 0.6%
AMP Ltd.		34,279		182,339
AXA Asia Pacific Holdings Ltd.		25,429		146,877
Insurance Australia Group Ltd.		34,397		121,670
QBE Insurance Group Ltd.		14,691		281,534
Suncorp-Metway Ltd.		20,709		158,373
Tower Australia Group Ltd.		4,484		9,517

				900,310


Materials 1.9%
Adelaide Brighton Ltd.		6,667		14,150
Alumina Ltd. *		25,134		33,874
Amcor Ltd.		22,007		116,864
BHP Billiton Ltd.		40,415		1,487,476
BlueScope Steel Ltd.		23,305		50,504
Boral Ltd.		7,021		33,763
Fortescue Metals Group Ltd. *		27,081		112,767
Gunns Ltd.		14,986		7,649
Iluka Resources Ltd. *		13,511		43,315
Incitec Pivot Ltd.		22,892		66,419
Newcrest Mining Ltd.		6,608		185,453
Nufarm Ltd.		3,127		27,246
OneSteel Ltd.		14,750		45,570
Orica Ltd.		4,071		91,176

12 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
OZ Minerals Ltd. *		32,391		30,166
PaperlinX Ltd. *		19,411		10,864
Rio Tinto Ltd.		5,369		338,960
Sims Metal Management Ltd.		2,714		47,222

				2,743,438


Media 0.0%
APN News & Media Ltd.		1,652		3,388
Austereo Group Ltd.		6,549		9,677
Consolidated Media Holdings Ltd.		9,027		25,221
Fairfax Media Ltd.		4,071		6,015
Ten Network Holdings Ltd. *		6,785		10,542
West Australian Newspapers Holdings Ltd.		59		390

				55,233


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
CSL Ltd.		7,906		243,475


Real Estate 0.6%
Australand Property Group		30,090		13,069
CFS Retail Property Trust		49,796		84,725
Commonwealth Property Office Fund		66,965		56,969
Dexus Property Group		72,747		53,745
Goodman Group		57,938		31,130
GPT Group		125,611		64,679
Lend Lease Group (a)		6,962		60,287
Macquarie Office Trust		55,165		13,832
Mirvac Group		38,173		52,301
Stockland		34,515		125,487
Westfield Group		32,037		344,843

				901,067


Retailing 0.0%
Harvey Norman Holdings Ltd.		13,747		47,149


Software & Services 0.1%
Computershare Ltd.		8,437		88,019


Telecommunication Services 0.1%
Telstra Corp., Ltd.		62,304		165,706


Transportation 0.3%
Asciano Group *		32,450		52,306
Macquarie Atlas Roads Group *		8,701		6,272
Macquarie Infrastructure Group		43,542		43,866
MAP Group		16,225		45,332
Qantas Airways Ltd.		18,290		43,240
Toll Holdings Ltd.		14,160		86,226
Transurban Group		28,556		133,997

				411,239


Utilities 0.1%
AGL Energy Ltd.		7,434		95,663
SP Ausnet		49,029		41,491

				137,154

				11,684,365

Austria 0.3%


Banks 0.1%
Erste Group Bank AG		3,313		125,103
Raiffeisen International Bank Holding AG		708		31,885

				156,988


Capital Goods 0.0%
Strabag SE		649		15,987


Energy 0.1%
OMV AG		2,124		78,842


Insurance 0.0%
Vienna Insurance Group AG		531		25,645


Materials 0.1%
Voestalpine AG		2,183		77,130


Telecommunication Services 0.0%
Telekom Austria AG		2,596		34,117


Utilities 0.0%
EVN AG		944		16,541
Oesterreichische Elektrizitaetswirtschafts AG, A Shares		826		33,705

				50,246

				438,955

Belgium 0.8%


Banks 0.1%
Dexia S.A. *		7,080		38,378
KBC GROEP N.V. *		2,537		114,981

				153,359


Diversified Financials 0.1%
Compagnie Nationale a Portefeuille/Nationale Portefeuille Maatschappij		413		20,668
Groupe Bruxelles Lambert S.A.		1,062		93,191

				113,859


Food & Staples Retailing 0.1%
Colruyt S.A.		236		59,116
Delhaize Group		1,416		109,896

				169,012


Food, Beverage & Tobacco 0.3%
Anheuser-Busch InBev N.V.		9,204		461,731


Insurance 0.1%
Fortis *		29,913		102,668


Materials 0.0%
Solvay S.A.		413		39,583
Umicore		1,003		30,127

				69,710


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
UCB S.A.		1,711		75,887


Telecommunication Services 0.0%
Belgacom S.A.		1,416		53,132

				1,199,358

Canada 7.8%


Banks 2.0%
Bank of Montreal		5,900		312,597
Bank of Nova Scotia		11,800		533,649
Canadian Imperial Bank of Commerce		5,900		390,803

See financial notes 13

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Royal Bank of Canada		17,700		951,357
The Toronto-Dominion Bank		11,800		750,681

				2,939,087


Capital Goods 0.2%
Bombardier, Inc., B Shares		41,300		222,335
Finning International, Inc.		5,900		98,245

				320,580


Energy 2.2%
Cameco Corp.		5,900		161,323
Canadian Natural Resources Ltd.		5,900		395,659
Cenovus Energy, Inc.		11,800		286,920
Enbridge, Inc.		5,900		260,349
EnCana Corp.		11,800		385,053
Husky Energy, Inc.		5,900		150,270
Imperial Oil Ltd.		5,900		216,306
Nexen, Inc.		5,900		132,575
Suncor Energy, Inc.		17,700		509,255
Talisman Energy, Inc.		11,800		214,688
TransCanada Corp.		11,800		388,291

				3,100,689


Food, Beverage & Tobacco 0.1%
Saputo, Inc.		5,900		167,742


Insurance 0.8%
Great-West Lifeco, Inc.		5,900		151,108
Manulife Financial Corp.		23,600		431,161
Power Corp. of Canada		5,900		162,272
Power Financial Corp.		5,900		173,268
Sun Life Financial, Inc.		5,900		167,463

				1,085,272


Materials 1.3%
Barrick Gold Corp.		11,800		442,660
Goldcorp, Inc.		11,800		444,558
Kinross Gold Corp.		5,900		106,451
Potash Corp. of Saskatchewan, Inc.		5,900		647,524
Teck Resources Ltd., B Shares*		5,900		216,027
Yamana Gold, Inc.		5,900		62,017

				1,919,237


Media 0.2%
Shaw Communications, Inc., B Shares		5,900		111,475
Thomson Reuters Corp.		5,900		203,858

				315,333


Real Estate 0.2%
Brookfield Asset Management, Inc., Class A		5,900		139,441
Brookfield Properties Corp.		11,800		164,672

				304,113


Software & Services 0.1%
CGI Group, Inc., A Shares *		5,900		82,615


Technology Hardware & Equipment 0.3%
Research In Motion Ltd. *		5,900		416,145


Telecommunication Services 0.2%
BCE, Inc.		5,900		162,997
Rogers Communications, Inc., B Shares		5,900		193,532

				356,529


Transportation 0.2%
Canadian National Railway Co.		5,900		308,690

				11,316,032

China 0.6%


Consumer Durables & Apparel 0.1%
Li Ning Co., Ltd.		29,500		92,338


Food, Beverage & Tobacco 0.2%
China Huiyuan Juice Group Ltd.		29,500		19,493
China Yurun Food Group Ltd.		59,000		176,696
People’s Food Holdings Ltd.		59,000		28,541
Want Want China Holdings Ltd.		177,000		116,049

				340,779


Materials 0.1%
Fosun International		29,500		21,964
Hidili Industry International Development Ltd. *		59,000		63,230

				85,194


Real Estate 0.1%
Greentown China Holdings Ltd.		29,500		39,139
Shui On Land Ltd.		59,000		28,727
Soho China Ltd.		29,500		14,554

				82,420


Retailing 0.0%
Parkson Retail Group Ltd.		29,500		48,867


Semiconductors & Semiconductor Equipment 0.0%
Semiconductor Manufacturing International Corp. *		354,000		37,391


Software & Services 0.1%
Alibaba.com Ltd.		29,500		64,522


Technology Hardware & Equipment 0.0%
Foxconn International Holdings Ltd. *		59,000		60,571

				812,082

Denmark 0.7%


Banks 0.2%
Danske Bank A/S *		9,322		212,811


Capital Goods 0.1%
FLSmidth & Co. A/S		649		41,414
Rockwool International A/S, B Shares		59		5,777
Vestas Wind Systems A/S *		2,596		128,524

				175,715


Food, Beverage & Tobacco 0.1%
Carlsberg A/S, B Shares		1,239		95,897
Danisco A/S		354		23,790

				119,687


Health Care Equipment & Services 0.0%
Coloplast A/S, B Shares		177		20,155


Insurance 0.0%
Trygvesta A/S		295		19,279


Materials 0.0%
Novozymes A/S, B Shares		531		54,623

14 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
H. Lundbeck A/S		649		11,484
Novo Nordisk A/S, B Shares		6,313		446,827

				458,311

				1,060,581

Finland 1.3%


Automobiles & Components 0.1%
Nokian Renkaat Oyj		2,419		60,841


Capital Goods 0.2%
Kone Oyj, B Shares		2,832		119,810
Metso Oyj		3,304		102,669
Wartsila Oyj		2,360		112,917

				335,396


Energy 0.0%
Neste Oil Oyj		2,478		35,441


Food & Staples Retailing 0.1%
Kesko Oyj, B Shares		1,770		64,325


Insurance 0.1%
Sampo Oyj, A Shares		8,378		203,515


Materials 0.2%
Outokumpu Oyj		2,537		44,732
Rautaruukki Oyj		1,888		35,685
Stora Enso Oyj, R Shares *		9,794		62,152
UPM-Kymmene Oyj		7,847		84,332

				226,901


Media 0.0%
Sanoma Oyj		885		17,742


Technology Hardware & Equipment 0.5%
Nokia Oyj		53,395		721,030


Utilities 0.1%
Fortum Oyj		7,847		200,362

				1,865,553

France 9.2%


Automobiles & Components 0.2%
Compagnie Generale des Etablissements Michelin, B Shares		1,593		111,372
PSA Peugeot S.A. *		2,478		65,555
Renault S.A. *		3,009		124,013

				300,940


Banks 1.0%
BNP Paribas		12,449		902,633
Natixis *		11,918		58,959
Societe Generale		9,086		500,946

				1,462,538


Capital Goods 1.1%
Alstom S.A.		3,422		219,467
Bouygues S.A.		3,245		149,682
Compagnie de Saint-Gobain		6,372		300,181
Eiffage S.A.		767		35,798
Legrand S.A.		767		24,069
Safran S.A.		2,419		57,045
Schneider Electric S.A.		2,950		315,748
Thales S.A.		885		35,442
Vallourec S.A.		708		135,607
Vinci S.A.		5,959		312,685
Wendel		413		23,185

				1,608,909


Commercial & Professional Services 0.1%
Bureau Veritas S.A.		885		44,965
Societe BIC S.A. *		531		37,682

				82,647


Consumer Durables & Apparel 0.6%
Christian Dior S.A.		1,121		110,086
Hermes International		1,062		143,467
LVMH Moet Hennessy Louis Vuitton S.A.		4,897		531,962

				785,515


Consumer Services 0.2%
Accor S.A.		3,894		197,394
Sodexo		2,242		133,340

				330,734


Diversified Financials 0.0%
Eurazeo		472		30,039


Energy 1.2%
Compagnie Generale De Geophysique-Veritas *		1,888		45,450
Technip S.A.		1,298		92,643
Total S.A.		29,559		1,653,099

				1,791,192


Food & Staples Retailing 0.4%
Carrefour S.A.		9,381		433,804
Casino Guichard Perrachon S.A.		767		61,872

				495,676


Food, Beverage & Tobacco 0.4%
Danone S.A.		7,257		425,361
Pernod Ricard S.A.		2,791		210,745

				636,106


Health Care Equipment & Services 0.1%
Essilor International S.A.		2,124		128,395


Household & Personal Products 0.2%
L’Oreal S.A.		3,186		330,530


Insurance 0.5%
AXA S.A.		26,803		540,806
CNP Assurances		531		47,726
Euler Hermes S.A.		177		12,650
SCOR SE		2,065		50,571

				651,753


Materials 0.4%
Air Liquide S.A.		2,950		353,109
Ciments Francais S.A.		59		5,173
Eramet		118		35,524
Imerys S.A.		236		12,203
Lafarge S.A.		2,655		172,577

				578,586


Media 0.4%
Eutelsat Communications		767		25,529
JC Decaux S.A. *		649		16,235
Lagardere S.C.A.		1,534		56,136
PagesJaunes Groupe		1,239		13,914

See financial notes 15

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Publicis Groupe		1,593		62,980
Societe Television Francaise 1		1,888		30,339
Vivendi		15,104		381,330

				586,463


Pharmaceuticals, Biotechnology & Life Sciences 0.6%
Ipsen S.A.		118		6,005
Sanofi-Aventis		12,036		882,379

				888,384


Real Estate 0.2%
Gecina S.A.		295		30,641
ICADE		118		11,862
Klepierre		1,062		39,638
Unibail-Rodamco SE		1,121		221,825

				303,966


Retailing 0.1%
PPR		1,180		135,736


Software & Services 0.1%
Atos Origin S.A. *		767		35,824
Cap Gemini S.A.		1,711		79,005
Dassault Systemes S.A.		590		34,059

				148,888


Technology Hardware & Equipment 0.1%
Alcatel-Lucent *		33,512		101,986


Telecommunication Services 0.4%
France Telecom S.A.		22,243		522,865


Transportation 0.0%
Air France-KLM *		1,180		15,793


Utilities 0.9%
EDF Energies Nouvelles S.A.		295		15,206
Electricite de France		4,012		201,541
GDF Suez		20,591		757,871
Suez Environnement S.A.		4,838		106,794
Veolia Environnement		6,195		201,297

				1,282,709

				13,200,350

Germany 6.4%


Automobiles & Components 0.5%
Bayerische Motoren Werke AG		4,189		170,272
Daimler AG - Reg’d		13,570		567,792

				738,064


Banks 0.1%
Commerzbank AG *		12,154		90,845
Deutsche Postbank AG *		1,298		40,175

				131,020


Capital Goods 0.9%
GEA Group AG		2,537		47,502
Hochtief AG		767		54,115
MAN SE		1,888		135,295
Siemens AG - Reg’d		11,741		1,009,285
Solarworld AG		1,357		18,797

				1,264,994


Consumer Durables & Apparel 0.1%
Adidas AG		2,832		140,641
Puma AG Rudolf Dassler Sport		118		33,431

				174,072


Consumer Services 0.0%
TUI AG *		4,897		48,451


Diversified Financials 0.5%
Deutsche Bank AG - Reg’d		8,260		525,689
Deutsche Boerse AG		2,655		185,077

				710,766


Food & Staples Retailing 0.1%
Metro AG		2,773		142,498


Health Care Equipment & Services 0.1%
Celesio AG		708		20,672
Fresenius Medical Care AG & Co. KGaA		2,124		111,162
Fresenius SE		177		11,583

				143,417


Household & Personal Products 0.1%
Beiersdorf AG		649		39,878
Henkel AG & Co. KGaA		1,003		44,322

				84,200


Insurance 0.8%
Allianz SE - Reg’d		5,664		655,475
Generali Deutschland Holding AG		118		13,656
Hannover Rueckversicherung AG - Reg’d *		767		34,432
Muenchener Rueckversicherungs - Gesellschaft AG - Reg’d		2,419		375,182

				1,078,745


Materials 0.9%
BASF SE		11,564		650,824
HeidelbergCement AG		2,478		126,561
K&S AG		2,368		144,195
Lanxess AG		944		34,784
Linde AG		1,475		166,449
Salzgitter AG		590		52,183
ThyssenKrupp AG		5,015		159,122
Wacker Chemie AG		177		21,266

				1,355,384


Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Bayer AG		10,443		693,623
Merck KGaA		767		60,501

				754,124


Semiconductors & Semiconductor Equipment 0.0%
Infineon Technologies AG *		12,095		66,140


Software & Services 0.4%
SAP AG		12,331		551,289


Telecommunication Services 0.3%
Deutsche Telekom AG - Reg’d		37,878		488,490


Transportation 0.2%
Deutsche Lufthansa AG - Reg’d		2,183		32,651
Deutsche Post AG - Reg’d		10,384		169,273
Fraport AG		118		5,954
Hamburger Hafen und Logistik AG		118		4,403

				212,281

16 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Utilities 0.9%
E.ON AG		25,547		911,868
RWE AG		5,015		426,242

				1,338,110

				9,282,045

Greece 0.1%


Banks 0.1%
Alpha Bank A.E. ADR *		8,100		19,440
National Bank of Greece S.A. ADR *		17,000		65,620

				85,060

				85,060

Hong Kong 2.3%


Banks 0.1%
BOC Hong Kong Holdings Ltd.		29,500		66,422
Dah Sing Banking Group Ltd. *		2,400		3,178
The Bank of East Asia Ltd.		23,600		86,334

				155,934


Capital Goods 0.4%
CITIC Resources Holdings Ltd. *		118,000		31,463
Hutchison Whampoa Ltd.		59,000		422,549
Johnson Electric Holdings Ltd. *		29,500		15,124
Melco International Development Ltd. *		17,000		6,854
Noble Group Ltd.		59,000		133,051

				609,041


Consumer Durables & Apparel 0.0%
C C Land Holdings Ltd.		59,000		22,724
Techtronic Industries Co., Ltd.		29,500		22,571

				45,295


Consumer Services 0.1%
China Travel International Investment Hong Kong Ltd.		118,000		31,007
Galaxy Entertainment Group Ltd. *		59,000		22,724
The Hongkong & Shanghai Hotels Ltd.		29,500		41,191

				94,922


Diversified Financials 0.2%
Hong Kong Exchanges & Clearing Ltd.		17,700		296,393


Food, Beverage & Tobacco 0.1%
China Mengniu Dairy Co., Ltd. *		59,000		175,556


Household & Personal Products 0.3%
Hengan International Group Co., Ltd.		59,000		405,070


Materials 0.0%
Lee & Man Paper Manufacturing Ltd.		83,600		55,566


Real Estate 0.7%
Cheung Kong (Holdings) Ltd.		4,000		48,896
Kerry Properties Ltd.		2,000		9,481
Kowloon Development Co., Ltd.		12,000		13,711
New World Development Co., Ltd.		59,000		107,765
Sino Land Co., Ltd.		30,000		57,037
Sun Hung Kai Properties Ltd.		59,000		818,500

				1,055,390


Retailing 0.2%
Belle International Holdings Ltd.		59,000		65,510
Esprit Holdings Ltd.		17,848		127,595
GOME Electrical Appliances Holdings Ltd. *		295,000		92,718
Lifestyle International Holdings Ltd.		29,500		48,715

				334,538


Semiconductors & Semiconductor Equipment 0.1%
ASM Pacific Technology Ltd.		5,900		55,896


Technology Hardware & Equipment 0.1%
Lenovo Group Ltd.		118,000		76,758


Transportation 0.0%
Hopewell Highway Infrastructure Ltd.		29,500		19,493

				3,379,852

Ireland 0.4%


Banks 0.0%
Allied Irish Banks plc *		5,900		7,939


Commercial & Professional Services 0.1%
Experian plc		11,623		107,408


Food, Beverage & Tobacco 0.0%
Kerry Group plc, A Shares		1,357		43,056


Materials 0.2%
CRH plc		9,322		212,847


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Elan Corp. plc *		8,968		62,735
Shire plc		6,195		132,698

				195,433


Transportation 0.0%
Ryanair Holdings plc *		6,313		30,154

				596,837

Israel 0.6%


Banks 0.1%
Bank Hapoalim B.M. *		10,620		44,099
Bank Leumi Le-Israel *		5,900		24,952

				69,051


Materials 0.1%
Israel Chemicals Ltd.		4,720		57,450


Pharmaceuticals, Biotechnology & Life Sciences 0.4%
Teva Pharmaceutical Industries Ltd.		10,620		634,361


Telecommunication Services 0.0%
Bezeq Israeli Telecommunication Corp., Ltd.		17,700		45,954

				806,816

Italy 2.9%


Automobiles & Components 0.0%
Pirelli & C S.p.A. *		66,257		33,230


Banks 0.8%
Banca Carige S.p.A.		8,437		21,508
Banca Monte dei Paschi di Siena S.p.A.		33,748		50,109
Banca Popolare di Milano Scarl		4,956		29,252

See financial notes 17

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Banco Popolare Societa Cooperatira *		8,437		53,828
Intesa Sanpaolo *		109,858		387,176
UniCredit S.p.A. *		238,623		604,730
Unione di Banche Italiane S.c.p.A.		7,847		97,932

				1,244,535


Capital Goods 0.0%
Finmeccanica S.p.A.		5,251		68,041


Consumer Durables & Apparel 0.1%
Benetton Group S.p.A.		1,475		11,736
Bulgari S.p.A.		2,655		20,580
Luxottica Group S.p.A.		2,301		60,291

				92,607


Consumer Services 0.1%
Autogrill S.p.A. *		4,248		52,871
Lottomatica S.p.A.		2,006		36,191

				89,062


Diversified Financials 0.1%
EXOR S.p.A.		1,121		17,119
Mediobanca S.p.A. *		5,723		60,529

				77,648


Energy 0.6%
Eni S.p.A.		33,571		759,143
Saipem S.p.A.		4,130		136,904
Saras S.p.A. *		3,776		8,688

				904,735


Food, Beverage & Tobacco 0.0%
Parmalat S.p.A.		13,865		35,062


Insurance 0.3%
Assicurazioni Generali S.p.A.		19,529		444,009
Fondiaria-Sai S.p.A.		1,239		18,058
Fondiaria-Sai S.p.A. - RSP		472		4,809
Mediolanum S.p.A.		2,301		13,063
Unipol Gruppo Finanziario S.p.A. *		10,561		11,797

				491,736


Materials 0.0%
Buzzi Unicem S.p.A.		708		8,821
Italcementi S.p.A.		354		3,870
Italcementi S.p.A. - RSP		767		4,731

				17,422


Media 0.1%
Mediaset S.p.A.		10,502		79,686


Telecommunication Services 0.2%
Telecom Italia S.p.A.		148,090		211,395
Telecom Italia S.p.A. - RSP		53,159		56,586

				267,981


Transportation 0.1%
Atlantia S.p.A.		4,130		95,477


Utilities 0.5%
A2A S.p.A.		22,951		39,747
Edison S.p.A.		11,505		16,015
Enel S.p.A.		90,152		489,968
Snam Rete Gas S.p.A.		20,119		95,411
Terna-Rete Elettrica Nazionale S.p.A.		18,467		76,047

				717,188

				4,214,410

Japan 18.1%


Automobiles & Components 1.8%
Bridgestone Corp.		5,900		103,440
Denso Corp.		5,900		159,874
Honda Motor Co., Ltd.		17,700		613,470
Mazda Motor Corp. *		10,000		26,332
Mitsubishi Motors Corp. *		59,000		84,319
Nissan Motor Co., Ltd. *		29,500		234,035
Nok Corp.		5,900		82,260
Suzuki Motor Corp.		5,900		125,416
Toyota Motor Corp.		29,500		1,105,441
Yamaha Motor Co., Ltd.		5,900		78,410

				2,612,997


Banks 1.4%
Aozora Bank Ltd. *		59,000		75,688
Hokuhoku Financial Group, Inc.		59,000		124,154
Mitsubishi UFJ Financial Group, Inc.		147,500		745,260
Mizuho Financial Group, Inc.		129,800		251,230
Mizuho Trust & Banking Co., Ltd. *		59,000		57,098
Resona Holdings, Inc.		11,800		142,612
Sapporo Hokuyo Holdings, Inc.		11,800		51,786
Shinsei Bank Ltd. *		59,000		66,393
Sumitomo Mitsui Financial Group, Inc.		17,700		568,854

				2,083,075


Capital Goods 2.3%
COMSYS Holdings Corp.		5,900		56,633
Daikin Industries Ltd.		5,900		227,064
Fanuc Ltd.		5,900		576,290
Hitachi Construction Machinery Co., Ltd.		500		10,235
IHI Corp. *		59,000		105,565
JS Group Corp.		5,900		116,254
JTEKT Corp.		5,900		62,011
Kawasaki Heavy Industries Ltd.		59,000		152,704
Komatsu Ltd.		17,700		355,334
Mitsubishi Corp.		17,700		442,176
Mitsubishi Electric Corp. *		2,000		16,407
Mitsubishi Heavy Industries Ltd.		59,000		219,096
Mitsui & Co., Ltd.		17,700		274,667
Sojitz Corp.		29,500		52,450
Sumitomo Corp.		17,700		192,805
Sumitomo Electric Industries Ltd.		11,800		141,815
THK Co., Ltd.		5,900		114,262
Toyota Tsusho Corp.		5,900		84,717
Ushio, Inc.		5,900		95,539

				3,296,024


Commercial & Professional Services 0.2%
Kokuyo Co., Ltd.		5,900		44,749
Secom Co., Ltd.		5,900		270,883

				315,632


Consumer Durables & Apparel 1.0%
Haseko Corp. *		29,500		28,881
Makita Corp.		5,900		188,887
NAMCO BANDAI Holdings, Inc.		5,900		54,708
Panasonic Corp.		35,400		491,971
Sanyo Electric Co., Ltd. *		59,000		99,589
Sega Sammy Holdings, Inc.		5,900		72,833

18 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Sony Corp.		11,800		404,996
Sumitomo Forestry Co., Ltd.		5,900		45,745

				1,387,610


Diversified Financials 0.8%
Acom Co., Ltd.		1,770		25,455
Credit Saison Co., Ltd.		5,900		75,157
Daiwa Securities Group, Inc.		59,000		291,465
Matsui Securities Co., Ltd.		5,900		39,570
Mitsubishi UFJ Lease & Finance Co., Ltd.		1,180		40,765
Monex Group, Inc.		59		28,217
Nomura Holdings, Inc.		47,200		348,430
ORIX Corp.		2,360		181,120
Promise Co., Ltd. *		5,900		45,213
SBI Holdings, Inc.		354		63,179
Takefuji Corp.		5,310		23,543

				1,162,114


Energy 0.1%
Nippon Mining Holdings, Inc.		29,500		147,060
Showa Shell Sekiyu K.K.		5,900		41,761

				188,821


Food & Staples Retailing 0.3%
Aeon Co., Ltd.		11,800		121,366
Seven & I Holdings Co., Ltd.		11,800		266,102
Uny Co., Ltd.		5,900		46,276

				433,744


Food, Beverage & Tobacco 0.5%
Asahi Breweries Ltd.		5,900		113,133
Japan Tobacco, Inc.		59		214,117
Kagome Co., Ltd.		5,900		105,830
Q.P. Corp.		5,900		65,331
Yakult Honsha Co., Ltd.		5,900		179,394

				677,805


Insurance 0.6%
Mitsui Sumitomo Insurance Group Holdings, Inc.		11,800		302,618
Sony Financial Holdings, Inc.		59		171,825
T&D Holdings, Inc.		5,900		127,408
Tokio Marine Holdings, Inc.		11,800		332,628

				934,479


Materials 1.3%
Hitachi Chemical Co., Ltd.		5,900		120,835
JFE Holdings, Inc.		5,900		219,428
JSR Corp.		5,900		115,524
Kobe Steel Ltd. *		59,000		107,556
Mitsubishi Chemical Holdings Corp.		29,500		133,782
Nippon Steel Corp.		59,000		220,424
Nitto Denko Corp.		5,900		217,437
Shin-Etsu Chemical Co., Ltd.		5,900		317,358
Showa Denko K.K.		59,000		119,507
Sumitomo Metal Industries Ltd.		59,000		162,663
Tokyo Steel Manufacturing Co., Ltd.		5,900		65,264
Toyo Seikan Kaisha Ltd.		5,900		96,402

				1,896,180


Media 0.2%
Dentsu, Inc.		5,900		140,089
Hakuhodo DY Holdings, Inc.		1,180		57,761
Toho Co., Ltd.		5,900		96,469

				294,319


Pharmaceuticals, Biotechnology & Life Sciences 0.7%
Astellas Pharma, Inc.		5,900		222,084
Chugai Pharmaceutical Co., Ltd.		5,900		113,864
Daiichi Sankyo Co., Ltd.		5,900		119,374
Dainippon Sumitomo Pharma Co., Ltd.		5,900		57,762
Eisai Co., Ltd.		5,900		230,051
Takeda Pharmaceutical Co., Ltd.		5,900		267,231

				1,010,366


Real Estate 0.3%
Leopalace21 Corp. *		11,800		56,832
Mitsubishi Estate Co., Ltd.		2,000		31,396
Mitsui Fudosan Co., Ltd.		3,000		50,639
NTT Urban Development Corp.		59		47,006
Sumitomo Real Estate Sales Co., Ltd.		590		25,594
Sumitomo Realty & Development Co., Ltd.		2,000		35,515
Tokyo Tatemono Co., Ltd.		59,000		207,810

				454,792


Retailing 0.2%
Isetan Mitsukoshi Holdings Ltd.		11,800		124,420
USS Co., Ltd.		590		38,243
Yamada Denki Co., Ltd.		2,360		164,654

				327,317


Semiconductors & Semiconductor Equipment 0.5%
Advantest Corp.		5,900		140,155
Elpida Memory, Inc. *		5,900		105,498
Sumco Corp. *		5,900		106,959
Tokyo Electron Ltd.		5,900		364,497

				717,109


Software & Services 0.5%
KONAMI Corp.		5,900		110,610
Nintendo Co., Ltd.		500		135,993
Nomura Research Institute Ltd.		5,900		129,400
NTT Data Corp.		59		183,178
Yahoo! Japan Corp.		295		110,378

				669,559


Technology Hardware & Equipment 1.9%
Alps Electric Co., Ltd. *		5,900		34,723
Brother Industries Ltd.		5,900		67,190
Canon, Inc.		17,700		735,965
FUJIFILM Holdings Corp.		5,900		187,626
Hitachi Ltd. *		59,000		194,531
Hoya Corp.		5,900		147,791
Kyocera Corp.		5,900		525,167
Murata Manufacturing Co., Ltd.		5,900		312,710
OMRON Corp.		5,900		128,537
Toshiba Corp. *		59,000		295,448
Yokogawa Electric Corp.		5,900		48,533

				2,678,221


Telecommunication Services 0.8%
KDDI Corp.		59		314,702
Nippon Telegraph & Telephone Corp.		5,900		256,941
NTT DoCoMo, Inc.		236		364,895
SOFTBANK Corp.		5,900		154,496

				1,091,034

See financial notes 19

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Transportation 1.2%
All Nippon Airways Co., Ltd.		59,000		178,597
Central Japan Railway Co.		59		446,824
East Japan Railway Co.		5,900		406,324
Kintetsu Corp.		59,000		186,564
Tokyu Corp.		59,000		250,301
West Japan Railway Co.		59		207,477

				1,676,087


Utilities 1.5%
Chubu Electric Power Co., Inc.		5,900		156,355
Electric Power Development Co., Ltd.		5,900		197,519
Hokkaido Electric Power Co., Inc.		5,900		116,785
Hokuriku Electric Power Co.		5,900		133,184
Kyushu Electric Power Co., Inc.		5,900		132,520
Osaka Gas Co., Ltd.		59,000		213,785
Shikoku Electric Power Co., Inc.		5,900		169,302
The Chugoku Electric Power Co., Inc.		5,900		123,159
The Kansai Electric Power Co., Inc.		11,800		279,381
The Tokyo Electric Power Co., Inc.		11,800		323,864
Tohoku Electric Power Co., Inc.		5,900		128,338
Tokyo Gas Co., Ltd.		59,000		256,940

				2,231,132

				26,138,417

Luxembourg 0.5%


Energy 0.1%
Tenaris S.A.		6,195		128,928


Materials 0.3%
ArcelorMittal		14,337		547,253


Media 0.1%
RTL Group		118		8,364
SES		3,953		95,998

				104,362

				780,543

Netherlands 3.6%


Capital Goods 0.3%
Koninklijke (Royal) Philips Electronics N.V.		12,862		376,858


Commercial & Professional Services 0.1%
Randstad Holding N.V. *		2,360		99,020


Diversified Financials 0.3%
ING Groep N.V. CVA *		46,199		413,908


Energy 1.5%
Fugro N.V. CVA		1,003		58,406
Royal Dutch Shell plc, A Shares		42,657		1,162,444
Royal Dutch Shell plc, B Shares		32,627		852,608
SBM Offshore N.V.		1,947		34,622

				2,108,080


Food & Staples Retailing 0.1%
Koninklijke Ahold N.V.		17,110		210,150


Food, Beverage & Tobacco 0.5%
Heineken Holding N.V.		885		36,178
Heineken N.V.		2,242		110,362
Unilever N.V. CVA		18,113		546,286

				692,826


Insurance 0.1%
AEGON N.V. *		23,777		150,236


Materials 0.2%
Akzo Nobel N.V.		2,714		138,318
James Hardie Industries N.V. CDI *		6,313		42,061
Koninklijke DSM N.V.		2,183		91,355

				271,734


Media 0.1%
Reed Elsevier N.V.		8,201		94,191
Wolters Kluwer N.V.		3,540		71,524

				165,715


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
QIAGEN N.V. *		2,773		60,662


Real Estate 0.0%
Corio N.V.		944		58,539


Semiconductors & Semiconductor Equipment 0.1%
ASML Holding N.V.		2,655		81,560
STMicroelectronics N.V.		3,540		30,725

				112,285


Telecommunication Services 0.2%
Koninklijke (Royal) KPN N.V.		18,762		299,573


Transportation 0.1%
TNT N.V.		3,599		93,369

				5,112,955

New Zealand 0.3%


Consumer Services 0.0%
Sky City Entertainment Group Ltd.		20,886		46,671


Health Care Equipment & Services 0.0%
Fisher & Paykel Healthcare Corp., Ltd.		10,148		24,094


Materials 0.1%
Fletcher Building Ltd.		20,178		111,736


Media 0.0%
Sky Network Television Ltd.		7,139		24,826


Real Estate 0.0%
Kiwi Income Property Trust		30,090		21,222


Retailing 0.0%
The Warehouse Group Ltd.		5,723		15,026


Telecommunication Services 0.1%
Telecom Corp. of New Zealand Ltd.		45,666		74,301


Transportation 0.0%
Air New Zealand Ltd.		7,965		7,175
Auckland International Airport Ltd.		34,220		44,446

				51,621


Utilities 0.1%
Contact Energy Ltd. *		10,797		46,142
Vector Ltd.		11,269		15,266

				61,408

				430,905

Norway 0.8%


Banks 0.1%
DnB NOR A.S.A. *		12,688		137,818

20 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Capital Goods 0.1%
Orkla A.S.A.		11,800		92,436


Energy 0.3%
Seadrill Ltd.		5,900		135,660
Statoil A.S.A.		17,700		396,797

				532,457


Insurance 0.1%
Storebrand A.S.A. *		11,800		82,015


Materials 0.1%
Norsk Hydro A.S.A. *		11,800		79,459
Yara International A.S.A.		2,950		121,485

				200,944


Telecommunication Services 0.1%
Telenor A.S.A. *		11,800		149,136

				1,194,806

Papua N.Guinea 0.1%


Energy 0.1%
Oil Search Ltd.		18,349		85,773

Portugal 0.4%


Banks 0.1%
Banco BPI S.A. - Reg’d		6,962		18,413
Banco Comercial Portugues S.A. - Reg’d		53,395		54,214

				72,627


Energy 0.0%
Galp Energia, SGPS, S.A., B Shares		4,012		65,291


Food & Staples Retailing 0.1%
Jeronimo Martins, SGPS, S.A.		9,027		86,825


Materials 0.0%
CIMPOR-Cimentos de Portugal, SGPS, S.A.		2,006		14,857


Media 0.0%
Zon Multimedia Servicos de Telecomunicacoes e Multimedia, SGPS, S.A.		4,248		21,618


Telecommunication Services 0.1%
Portugal Telecom, SGPS, S.A. - Reg’d		6,726		70,953


Transportation 0.0%
Brisa Auto-Estradas de Portugal S.A.		3,186		25,588


Utilities 0.1%
EDP - Energias de Portugal S.A.		41,713		153,415

				511,174

Republic of Korea 3.5%


Banks 0.6%
KB Financial Group, Inc. ADR *		11,800		494,066
Shinhan Financial Group Co., Ltd. ADR		5,900		428,930

				922,996


Materials 0.9%
POSCO ADR		11,800		1,362,428


Semiconductors & Semiconductor Equipment 1.1%
Samsung Electronics Co., Ltd. GDR - Reg’d (b)		4,838		1,545,741


Technology Hardware & Equipment 0.2%
LG Display Co., Ltd. ADR		17,700		266,208


Telecommunication Services 0.4%
KT Corp. ADR		17,700		339,486
SK Telecom Co., Ltd. ADR		17,700		295,236

				634,722


Utilities 0.3%
Korea Electric Power Corp. ADR		23,600		380,668

				5,112,763

Singapore 1.2%


Banks 0.3%
Oversea-Chinese Banking Corp., Ltd.		59,000		356,342


Capital Goods 0.1%
Singapore Technologies Engineering Ltd.		59,000		131,373
Yangzijiang Shipbuilding Holdings Ltd.		59,000		47,848

				179,221


Diversified Financials 0.0%
Pacific Century Regional Developments Ltd.		59,000		7,765


Food & Staples Retailing 0.1%
Olam International Ltd.		59,000		101,992


Food, Beverage & Tobacco 0.2%
Golden Agri-Resources Ltd. *		177,000		66,735
Wilmar International Ltd.		59,000		272,818

				339,553


Real Estate 0.2%
CapitaCommercial Trust		59,000		45,330
Capitaland Ltd.		59,000		158,654
CapitaMall Trust		59,000		74,290

				278,274


Telecommunication Services 0.2%
Singapore Telecommunications Ltd.		118,000		256,029


Transportation 0.1%
ComfortDelGro Corp., Ltd.		59,000		65,056
Neptune Orient Lines Ltd.		59,000		74,710
Singapore Post Ltd.		59,000		44,071

				183,837

				1,703,013

Spain 3.4%


Banks 1.1%
Banco de Sabadell S.A.		15,163		73,501
Banco de Valencia S.A.		2,773		17,862
Banco Espanol de Credito S.A.		1,298		13,096
Banco Popular Espanol S.A.		13,983		92,741
Banco Santander S.A.		104,135		1,357,037

				1,554,237

See financial notes 21

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Capital Goods 0.1%
ACS, Actividades de Construccion y Servicios S.A.		3,186		141,917
Fomento de Construcciones y Contratas S.A.		649		21,823
Zardoya Otis S.A.		1,711		31,172

				194,912


Diversified Financials 0.1%
Corporacion Financiera Alba S.A.		472		23,157
Criteria Caixacorp S.A.		15,812		72,504

				95,661


Energy 0.3%
Repsol YPF S.A.		15,458		350,924


Insurance 0.0%
Mapfre S.A.		12,647		45,651


Materials 0.0%
Acerinox S.A.		2,832		48,484


Media 0.0%
Gestevision Telecinco S.A.		1,357		17,984


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Grifols S.A.		2,832		42,900


Retailing 0.1%
Industria de Diseno Textil S.A.		3,009		177,847


Software & Services 0.0%
Indra Sistemas S.A.		1,888		38,726


Telecommunication Services 0.9%
Telefonica S.A.		53,454		1,258,000


Transportation 0.1%
Abertis Infraestructuras S.A.		3,127		59,061
Cintra Concesiones de Infraestructuras de Transporte S.A.		5,782		51,053

				110,114


Utilities 0.7%
Acciona S.A.		413		46,008
EDP Renovaveis S.A. *		6,903		55,760
Enagas		2,655		55,508
Endesa S.A.		1,475		42,654
Gas Natural SDG S.A.		6,313		116,049
Iberdrola Renovables S.A.		14,101		59,232
Iberdrola S.A.		66,729		538,559
Red Electrica Corporacion S.A.		885		44,639

				958,409

				4,893,849

Sweden 2.9%


Banks 0.6%
Nordea Bank AB		46,492		454,974
Skandinaviska Enskilda Banken AB, A Shares *		26,373		159,859
Svenska Handelsbanken AB, A Shares		9,086		248,480
Swedbank AB, A Shares *		7,965		76,210

				939,523


Capital Goods 0.8%
AB SKF, B Shares		6,726		106,486
Alfa Laval AB		6,490		92,256
Assa Abloy AB, B Shares		7,906		148,735
Atlas Copco AB, A Shares		8,555		121,370
Atlas Copco AB, B Shares		5,133		66,398
Sandvik AB		15,045		162,356
Scania AB, B Shares		5,074		71,842
Skanska AB, B Shares		7,257		120,301
Volvo AB, A Shares		7,021		59,034
Volvo AB, B Shares		16,402		139,179

				1,087,957


Commercial & Professional Services 0.1%
Securitas AB, B Shares		11,918		128,947


Consumer Durables & Apparel 0.1%
Electrolux AB, Series B *		5,959		126,852
Husqvarna AB, B Shares *		13,216		85,293

				212,145


Diversified Financials 0.2%
Industrivarden AB, A Shares		3,422		40,657
Industrivarden AB, C Shares		708		7,839
Investor AB, B Shares		9,617		171,053

				219,549


Food, Beverage & Tobacco 0.1%
Swedish Match AB		7,552		172,444


Materials 0.2%
Boliden AB		2,419		29,676
Holmen AB, B Shares		1,770		44,050
SSAB AB, A Shares		3,068		51,549
SSAB AB, B Shares		826		12,613
Svenska Cellulosa AB, B Shares		10,443		154,762

				292,650


Retailing 0.3%
Hennes & Mauritz AB, B Shares		6,077		369,551


Technology Hardware & Equipment 0.3%
Telefonaktiebolaget LM Ericsson, B Shares		40,238		403,390


Telecommunication Services 0.2%
Tele2 AB, B Shares		6,549		97,607
TeliaSonera AB		36,167		250,956

				348,563

				4,174,719

Switzerland 7.7%


Capital Goods 0.6%
ABB Ltd. - Reg’d *		30,267		613,071
Geberit AG - Reg’d		708		121,366
Schindler Holding AG		708		56,624
Schindler Holding AG - Reg’d		1,003		79,703

				870,764


Commercial & Professional Services 0.2%
Adecco S.A. - Reg’d		2,950		146,840
SGS S.A. - Reg’d		118		158,169

				305,009


Consumer Durables & Apparel 0.4%
Compagnie Financiere Richemont S.A., A Shares		8,201		276,883

22 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Swatch Group AG		531		147,847
Swatch Group AG - Reg’d		1,593		84,639

				509,369


Diversified Financials 1.0%
Credit Suisse Group AG - Reg’d		15,399		684,687
EFG International AG		236		3,245
GAM Holding Ltd.		2,242		24,493
Julius Baer Group Ltd.		3,186		99,251
Pargesa Holding S.A.		767		60,163
UBS AG - Reg’d *		44,014		607,613

				1,479,452


Food, Beverage & Tobacco 1.6%
Nestle S.A. - Reg’d		46,846		2,334,003


Health Care Equipment & Services 0.1%
Nobel Biocare Holding AG - Reg’d		1,298		33,055
Sonova Holding AG - Reg’d		531		66,325
Straumann Holding AG - Reg’d		118		28,818

				128,198


Insurance 0.6%
Baloise Holding AG - Reg’d		826		71,143
Swiss Life Holding AG - Reg’d *		354		44,679
Swiss Reinsurance Co., Ltd. - Reg’d		4,543		204,452
Zurich Financial Services AG		1,888		455,809

				776,083


Materials 0.8%
Givaudan S.A. - Reg’d		177		145,603
Holcim Ltd. - Reg’d *		3,186		211,004
Syngenta AG - Reg’d		1,534		397,513
Xstrata plc *		28,969		454,254

				1,208,374


Pharmaceuticals, Biotechnology & Life Sciences 2.3%
Actelion Ltd. - Reg’d *		1,947		99,365
Lonza Group AG - Reg’d		944		74,443
Novartis AG - Reg’d		29,087		1,620,011
Roche Holding AG		9,027		1,509,549

				3,303,368


Telecommunication Services 0.1%
Swisscom AG - Reg’d		354		121,795


Transportation 0.0%
Kuehne & Nagel International AG - Reg’d		590		53,594


Utilities 0.0%
BKW FMB Energie AG		590		43,145

				11,133,154

United Kingdom 15.2%


Banks 2.8%
Barclays plc		142,426		677,591
HSBC Holdings plc		211,751		2,319,771
Lloyds Banking Group plc *		405,332		323,966
Royal Bank of Scotland Group plc *		220,778		126,614
Standard Chartered plc		25,193		599,086

				4,047,028


Capital Goods 0.5%
BAE Systems plc		38,999		222,230
Bunzl plc		2,006		20,782
Cobham plc		9,027		33,202
European Aeronautic Defence & Space Co.		4,189		86,637
Invensys plc		9,086		43,545
Rolls-Royce Group plc *		19,057		161,889
Smiths Group plc		3,658		57,861
Tomkins plc		8,968		26,296
Wolseley plc *		3,835		90,495

				742,937


Commercial & Professional Services 0.2%
Capita Group plc		6,785		73,959
G4S plc		16,756		69,054
Hays plc		15,281		24,264
Rentokil Initial plc *		26,314		51,638

				218,915


Consumer Durables & Apparel 0.0%
Burberry Group plc		5,841		55,622


Consumer Services 0.5%
Carnival plc *		3,363		127,023
Compass Group plc		26,550		197,086
Intercontinental Hotels Group plc		5,900		82,636
Ladbrokes plc		16,697		37,087
PartyGaming plc *		4,484		20,705
Thomas Cook Group plc		14,514		52,103
TUI Travel plc		11,623		48,519
Whitbread plc		3,481		75,252
William Hill plc		13,688		40,635

				681,046


Diversified Financials 0.1%
3i Group plc		12,685		50,809
ICAP plc		5,487		27,216
Provident Financial plc		295		4,244
Schroders plc		1,829		33,302
Schroders plc, Non-Voting Shares		295		4,419

				119,990


Energy 2.0%
AMEC plc		2,714		32,559
BG Group plc		39,530		689,066
BP plc		228,094		2,009,536
Cairn Energy plc *		14,160		72,087
Petrofac Ltd.		767		11,992
Tullow Oil plc		7,611		137,769

				2,953,009


Food & Staples Retailing 0.6%
J Sainsbury plc		23,128		116,334
Tesco plc		95,580		610,709
William Morrison Supermarkets plc		31,152		141,566

				868,609


Food, Beverage & Tobacco 1.6%
Associated British Foods plc		2,065		29,866
British American Tobacco plc		23,600		801,028
Diageo plc		29,500		477,851
Imperial Tobacco Group plc		10,502		327,119
SABMiller plc		12,272		321,345
Tate & Lyle plc		2,478		15,886
Unilever plc		13,688		400,935

				2,374,030

See financial notes 23

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Health Care Equipment & Services 0.1%
Smith & Nephew plc		7,316		75,014


Household & Personal Products 0.3%
Reckitt Benckiser Group plc		7,965		418,101


Insurance 0.6%
Admiral Group plc		1,593		30,072
Aviva plc		34,692		206,137
Legal & General Group plc		77,585		91,126
Old Mutual plc *		69,620		120,192
Prudential plc		34,574		317,129
Resolution Ltd. *		21,240		23,363
RSA Insurance Group plc		36,285		71,591
Standard Life plc		25,134		74,768

				934,378


Materials 2.0%
Anglo American plc *		16,579		603,232
Antofagasta plc		3,068		41,266
BHP Billiton plc		26,668		814,829
Eurasian Natural Resources Corp.		4,956		77,487
Fresnillo plc		2,419		27,639
Johnson Matthey plc		1,770		42,791
Kazakhmys plc *		2,891		59,021
Lonmin plc *		2,596		71,415
Randgold Resources Ltd.		354		25,206
Rexam plc		7,198		30,584
Rio Tinto plc		19,647		1,006,192
Vedanta Resources plc		1,888		73,237

				2,872,899


Media 0.4%
Aegis Group plc		9,617		17,057
British Sky Broadcasting Group plc		13,629		112,873
Daily Mail & General Trust plc, A Shares		2,596		17,571
ITV plc *		53,926		44,332
Pearson plc		8,378		116,323
Reed Elsevier plc		12,331		92,362
United Business Media Ltd.		2,183		14,533
WPP plc		14,396		132,375

				547,426


Pharmaceuticals, Biotechnology & Life Sciences 1.3%
AstraZeneca plc		17,464		766,641
GlaxoSmithKline plc		62,363		1,152,588

				1,919,229


Real Estate 0.2%
British Land Co. plc		9,263		62,049
Hammerson plc		8,142		47,474
Land Securities Group plc		9,263		89,195
Liberty International plc		6,490		46,705
SEGRO plc		9,971		48,378

				293,801


Retailing 0.2%
Home Retail Group plc		8,142		31,608
Kingfisher plc		24,544		80,336
Marks & Spencer Group plc		16,638		83,613
Next plc		1,593		45,472
The Carphone Warehouse Group plc		944		2,665

				243,694


Software & Services 0.1%
Autonomy Corp. plc *		2,065		48,099
Logica plc		19,883		36,142
The Sage Group plc		11,800		42,540

				126,781


Telecommunication Services 1.1%
BT Group plc		80,771		141,287
Cable & Wireless plc		19,470		40,430
Inmarsat plc		1,475		16,460
Vodafone Group plc		649,295		1,398,214

				1,596,391


Transportation 0.0%
British Airways plc *		2,773		8,916


Utilities 0.6%
Centrica plc		56,876		242,186
Drax Group plc		3,776		22,988
International Power plc		18,762		92,631
National Grid plc		27,317		271,150
Scottish & Southern Energy plc		10,089		172,180
Severn Trent plc		2,065		36,625
United Utilities Group plc		6,490		53,700

				891,460

				21,989,276

United States 0.1%


Health Care Equipment & Services 0.1%
Synthes, Inc.		885		105,675

Total Common Stock (Cost $149,794,954)				143,309,318




Other Investment Company 0.3% of net assets

United States 0.3%
State Street Institutional Liquid Reserves Fund		470,220		470,220

Total Other Investment Company (Cost $470,220)				470,220




Preferred Stock 0.2% of net assets

Germany 0.2%
Fresenius SE		708		49,905
Henkel AG & Co. KGaA		1,652		85,298
Volkswagen AG		1,239		101,114

				236,317

Italy 0.0%
EXOR S.p.A.		1,003		8,445
Unipol Gruppo Finanziario S.p.A. *		12,862		9,636

				18,081

Total Preferred Stock (Cost $264,302)				254,398

24 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Rights 0.0% of net assets

Australia 0.0%
Lend Lease Group *		1,582		2,274

Italy 0.0%
Banca Carige S.p.A. *		7,722		153

Total Rights (Cost $—)				2,427



End of Investments

At 2/28/10, the tax basis cost of the fund’s investments was $150,535,062 and the unrealized appreciation and depreciation were $1,994,107 and ($8,492,806), respectively, with a net unrealized depreciation of ($6,498,699).


*		Non-income producing security.
(a)		Fair valued by management in accordance with procedures approved by the Board of Trustees.
(b)		Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $1,545,741 or 1.1% of net assets.


ADR —		American Depositary Receipt.
CDI —		CHESS Depositary Interest.
CVA —		Dutch Certificate.
GDR —		Global Depositary Receipt.
Reg’d —		Registered
RSP —		Risparmio (Convertible Savings Shares).

See financial notes 25

Schwab International Equity ETF

Statement of

Assets and Liabilities

As of February 28, 2010 (unaudited)




Assets
Investments, at value (cost $150,529,476)		$144,036,363
Foreign currency, at value (cost $23,400)		23,516
Receivables:
Dividends		222,399
Foreign tax reclaims		6,612
Interest	+	55


Total assets		144,288,945


Liabilities
Payables:
Investment adviser and administrator fees		1,859


Total liabilities		1,859


Net Assets
Total assets		144,288,945
Total liabilities	—	1,859


Net assets		$144,287,086
Net Assets by Source
Capital received from investors		151,120,475
Net investment income not yet distributed		247,234
Net realized capital losses		(585,694	)
Net unrealized capital losses		(6,494,929	)

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$144,287,086

5,900,001

$24.46

26 See financial notes

Schwab International Equity ETF

Statement of

Operations

For October 30, 2009* through February 28, 2010 (unaudited)




Investment Income
Dividends (net of foreign withholding tax of $36,229)		$420,903
Interest	+	87


Total investment income		420,990


Expenses
Investment adviser and administrator fees		41,756


Total expenses		41,756


Net investment income		379,234


Realized and Unrealized Gains (Losses)
Net realized losses on investments		(580,607	)
Net realized losses on foreign currency transactions	+	(5,087	)


Net realized losses		(585,694	)
Net unrealized losses on investments		(6,493,113	)
Net unrealized losses on foreign currency translations	+	(1,816	)


Net unrealized losses	+	(6,494,929	)


Net realized and unrealized losses		(7,080,623	)
Net decrease in net assets resulting from operations		$(6,701,389	)


*	Commencement of operations.

See financial notes 27

Schwab International Equity ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on October 30, 2009, it has no prior report period.

Figures for the current period are unaudited.




Operations


		*10/30/09-02/28/10**
Net investment income		$379,234
Net realized losses		(585,694)
Net unrealized losses	+	(6,494,929)


Net decrease in net assets resulting from operations		$(6,701,389)


Distributions to Shareholders
Distributions from net investment income		$132,000




Transactions in Fund Shares


		*10/30/09-02/28/10**
		SHARES		VALUE
Shares Sold			5,900,001		$151,120,475
Shares Redeemed	+		—		—


Net transactions in fund shares			5,900,001		$151,120,475




Shares Outstanding and Net Assets


		*10/30/09-02/28/10**
		SHARES		NET ASSETS
Beginning of period			—		$—
Total increase	+		5,900,001		144,287,086


End of period			5,900,001		$144,287,086



Net investment income not yet distributed					$247,234


*	Commencement of operations.

28 See financial notes

Schwab International Small-Cap Equity ETF ^tm

Financial Statements

Financial Highlights


	1/13/10¹–
	2/28/10*


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.00	²
Net realized and unrealized gains (losses)		(1.75	)

Total from investment operations		(1.75	)

Net asset value at end of period		23.25

Total return (%)		(7.00	)³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.35	⁴
Gross operating expenses		0.35	⁴
Net investment income (loss)		0.65	⁴
Portfolio turnover rate⁵		1	³
Net assets, end of period ($ x 1,000)		25,571

* Unaudited.

¹ Commencement of operations.

² Amount less than $0.01.

³ Not annualized.

⁴ Annualized.

⁵ Portfolio turnover rate excludes securities received or delivered from processing of in kind creations or redemptions.

See financial notes 29

Schwab International Small-Cap Equity ETF

Portfolio Holdings as of February 28, 2010 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	99	.1%	Common Stock		25,930,525		25,334,142
	0	.6%	Other Investment Companies		167,834		167,458
	0	.2%	Preferred Stock		53,242		55,401


	99	.9%	Total Investments		26,151,601		25,557,001
	0	.1%	Other Assets and Liabilities, Net				13,589


	100	.0%	Net Assets				25,570,590


	Number		Value
Security	of Shares		($)

Common Stock 99.1% of net assets

Australia 5.2%


Capital Goods 0.6%
Ausenco Ltd.		4,565		15,943
Boart Longyear Group *		114,356		32,258
Bradken Ltd.		3,201		18,575
Crane Group Ltd.		2,552		19,196
Macmahon Holdings Ltd.		30,063		17,903
Monadelphous Group Ltd.		803		10,218
UGL Ltd.		2,629		34,090

				148,183


Commercial & Professional Services 0.6%
Cabcharge Australia Ltd.		3,949		19,662
Campbell Brothers Ltd.		1,287		33,423
SAI Global Ltd.		4,840		16,253
Seek Ltd.		1,958		12,467
Transfield Services Ltd.		9,097		32,911
Transpacific Industries Group Ltd. *		26,147		31,961

				146,677


Consumer Durables & Apparel 0.1%
G.U.D Holdings Ltd.		2,772		24,128


Consumer Services 0.1%
Invocare Ltd.		5,269		28,357


Diversified Financials 0.0%
Platinum Asset Management Ltd.		1,892		9,657


Energy 0.8%
Arrow Energy Ltd. *		15,917		47,322
AWE Ltd. *		12,529		28,274
Beach Energy Ltd.		36,982		22,023
Carnarvon Petroleum Ltd. *		32,989		15,066
Centennial Coal Co., Ltd.		9,383		30,669
Linc Energy Ltd. *		13,926		18,145
Riversdale Mining Ltd. *		4,499		29,653
Roc Oil Co., Ltd. *		33,000		10,786

				201,938


Food, Beverage & Tobacco 0.1%
GrainCorp Ltd.		6,435		35,728


Health Care Equipment & Services 0.4%
Healthscope Ltd.		6,886		26,269
Primary Health Care Ltd.		9,416		37,017
Ramsay Health Care Ltd.		2,849		32,299

				95,585


Materials 0.7%
Andean Resources Ltd. *		8,151		18,759
Atlas Iron Ltd. *		11,583		20,952
Coal of Africa Ltd. *		12,408		26,667
Gindalbie Metals Ltd. *		18,667		16,800
Independence Group NL		4,598		16,676
Kingsgate Consolidated Ltd.		1,386		10,935
Lynas Corp., Ltd. *		38,665		16,446
MacArthur Coal Ltd.		3,355		30,645
Murchison Metals Ltd. *		9,416		19,731
Sundance Resources Ltd. *		115,687		13,468

				191,079


Media 0.1%
Austar United Communications Ltd. *		17,149		17,277


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Pharmaxis Ltd. *		7,029		16,177


Real Estate 0.7%
Abacus Property Group		50,996		19,180
Ardent Leisure Group		13,013		16,781
Bunnings Warehouse Property Trust		16,984		27,833
Cromwell Group		21,197		13,192
FKP Property Group		32,406		21,039
ING Industrial Fund *		67,452		25,671
ING Office Fund		72,149		39,089
Macquarie CountryWide Trust		46,475		23,723

				186,508


Retailing 0.4%
David Jones Ltd.		9,702		41,182
JB Hi-Fi Ltd.		1,551		27,056
Pacific Brands Ltd. *		25,795		26,333
Wotif.com Holdings Ltd.		1,364		8,966

				103,537


Semiconductors & Semiconductor Equipment 0.1%
Silex Systems Ltd. *		5,313		27,167


Software & Services 0.1%
Iress Market Technology Ltd.		2,046		14,896


Transportation 0.1%
ConnectEast Group		103,543		40,334


Utilities 0.2%
APA Group		9,801		30,368
Infigen Energy		17,754		20,350

				50,718

				1,337,946

Austria 1.3%


Automobiles & Components 0.1%
Semperit AG Holding		473		17,732

30 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Capital Goods 0.3%
Andritz AG		638		36,307
Wienerberger AG *		2,475		42,423

				78,730


Consumer Services 0.1%
bwin Interactive Entertainment AG *		550		30,024


Energy 0.1%
Schoeller-Bleckmann Oilfield Equipment AG		440		22,157


Materials 0.1%
Mayr Melnhof Karton AG		154		14,278
RHI AG *		825		24,308

				38,586


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Intercell AG *		770		22,435


Real Estate 0.4%
CA Immobilien Anlagen AG *		2,222		22,015
Conwert Immobilien Invest SE *		2,145		23,653
Immofinanz AG *		9,724		31,716
Sparkassen Immobilien AG *		2,651		16,461

				93,845


Transportation 0.1%
Oesterreichische Post AG		671		18,232

				321,741

Belgium 1.8%


Capital Goods 0.2%
Bekaert N.V.		286		46,388


Diversified Financials 0.6%
Ackermans & van Haaren N.V.		550		36,865
Banque Nationale de Belgique		11		50,890
RHJ International *		3,069		25,422
Sofina S.A.		407		35,509

				148,686


Health Care Equipment & Services 0.2%
AGFA-Gevaert N.V. *		3,278		28,943
Omega Pharma S.A.		462		22,799

				51,742


Materials 0.2%
Nyrstar *		2,277		29,521
Tessenderlo Chemie N.V.		660		19,671

				49,192


Real Estate 0.2%
Befimmo S.C.A.		396		32,393
Cofinimmo		275		37,360

				69,753


Retailing 0.1%
S.A. D’ieteren N.V.		66		28,787


Technology Hardware & Equipment 0.1%
EVS Broadcast Equipment S.A.		297		15,945


Telecommunication Services 0.1%
Telenet Group Holding N.V. *		1,309		39,033


Utilities 0.1%
Elia System Operator S.A./N.V.		528		20,024

				469,550

Canada 18.4%


Automobiles & Components 0.1%
Linamar Corp.		1,100		16,495
Martinrea International, Inc. *		1,100		8,805

				25,300


Banks 0.2%
Canadian Western Bank		1,100		21,647
Genworth MI Canada, Inc.		1,100		28,360

				50,007


Capital Goods 0.6%
Aecon Group, Inc.		1,100		14,435
ATS Automation Tooling Systems, Inc. *		2,200		14,300
CAE, Inc.		5,500		46,364
Russel Metals, Inc.		1,100		19,753
Superior Plus Corp.		2,200		28,995
Toromont Industries Ltd.		1,100		31,524

				155,371


Commercial & Professional Services 0.4%
IESI-BFC Ltd.		1,100		19,275
Ritchie Bros Auctioneers, Inc.		2,200		45,938
Stantec, Inc. *		1,100		28,266
Transcontinental, Inc., Class A		1,100		12,728

				106,207


Consumer Durables & Apparel 0.3%
Dorel Industries, Inc., Class B		1,100		31,545
Gildan Activewear, Inc., Class A *		2,200		51,641

				83,186


Consumer Services 0.4%
Great Canadian Gaming Corp. *		2,200		15,194
Tim Hortons, Inc.		3,300		99,723

				114,917


Diversified Financials 0.8%
AGF Management Ltd., Class B		1,100		16,860
CI Financial Corp.		3,300		65,253
Dundee Corp., Class A *		1,100		13,821
DundeeWealth, Inc.		1,100		14,383
GMP Capital, Inc.		1,100		13,103
Onex Corp.		2,200		52,765
TMX Group, Inc.		1,100		30,129

				206,314


Energy 3.4%
Advantage Oil & Gas Ltd.		3,300		22,605
Bankers Petroleum Ltd. *		4,400		24,103
Birchcliff Energy Ltd. *		2,200		19,774
BlackPearl Resources, Inc. *		4,400		10,199
Calfrac Well Services Ltd.		1,100		24,821
Celtic Exploration Ltd. *		1,100		21,262
Connacher Oil and Gas Ltd. *		9,900		12,083
Corridor Resources, Inc. *		2,200		8,305
Crescent Point Energy Corp.		3,300		121,766
Crew Energy, Inc. *		1,100		15,184
Denison Mines Corp. *		7,700		10,272
Ensign Energy Services, Inc.		3,300		47,020

See financial notes 31

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Fairborne Energy Ltd. *		2,200		9,283
Mullen Group Ltd.		1,100		15,996
Niko Resources Ltd.		1,100		104,073
NuVista Energy Ltd. *		2,200		28,870
OPTI Canada, Inc. *		6,600		11,802
Pacific Rubiales Energy Corp. *		3,300		52,297
Paramount Resources Ltd., A Shares *		1,100		18,640
Pason Systems, Inc.		1,100		13,425
PetroBakken Energy Ltd., A Shares		1,100		29,349
Petrobank Energy & Resources Ltd. *		1,100		56,668
Progress Energy Resources Corp.		3,300		39,777
Savanna Energy Services Corp.		2,200		15,257
ShawCor Ltd., Class A		1,100		29,650
Storm Exploration, Inc. *		1,100		12,541
Trican Well Service Ltd.		2,200		28,370
Trinidad Drilling Ltd.		2,200		14,945
Uranium One, Inc. *		11,000		31,846
UTS Energy Corp. *		8,800		20,482

				870,665


Food & Staples Retailing 0.8%
Alimentation Couche-Tard, Inc., B Shares		2,200		40,922
Empire Co., Ltd., A Shares		1,100		50,902
Metro, Inc., A Shares		2,200		84,861
The Jean Coutu Group PJC, Inc., A Shares		2,200		20,128

				196,813


Food, Beverage & Tobacco 0.4%
Cott Corp. *		2,200		15,757
Maple Leaf Foods, Inc.		2,200		22,126
Viterra, Inc. *		7,700		70,811

				108,694


Health Care Equipment & Services 0.1%
CML Healthcare Income Fund		2,200		28,016


Insurance 0.5%
Industrial Alliance Insurance & Financial Services, Inc.		1,100		34,521
Intact Financial Corp.		2,200		87,879

				122,400


Materials 6.4%
Alamos Gold, Inc. *		2,200		26,580
Aura Minerals, Inc. *		2,200		8,014
Aurizon Mines Ltd. *		3,300		13,207
Canfor Corp. *		2,200		17,672
Capstone Mining Corp. *		4,400		11,823
Cascades, Inc.		1,100		8,534
CCL Industries, Inc., Class B		1,100		27,121
Centerra Gold, Inc. *		3,300		39,995
Consolidated Thompson Iron Mines Ltd. *		4,400		36,009
Corriente Resources, Inc., A Shares *		2,200		17,672
Detour Gold Corp. *		1,100		17,724
Eastern Platinum Ltd. *		13,200		16,360
Eldorado Gold Corp. *		8,800		110,650
Equinox Minerals Ltd. *		12,100		38,007
European Goldfields Ltd. *		3,300		18,171
First Quantum Minerals Ltd.		1,100		85,340
FNX Mining Co., Inc. *		2,200		26,164
Franco-Nevada Corp.		2,200		56,990
Fronteer Development Group, Inc. *		2,200		9,762
Gabriel Resources Ltd. *		3,300		11,896
Gammon Gold, Inc. *		3,300		32,190
Harry Winston Diamond Corp. *		1,100		10,980
HudBay Minerals, Inc. *		3,300		41,494
IAMGOLD Corp.		6,600		96,663
Inmet Mining Corp.		1,100		59,696
Ivanhoe Mines Ltd. *		5,500		87,473
Lake Shore Gold Corp. *		4,400		12,780
Lundin Mining Corp. *		7,700		32,419
Mercator Minerals Ltd. *		3,300		8,274
Methanex Corp.		2,200		51,849
Minefinders Corp. *		1,100		10,824
New Gold, Inc. *		7,700		33,876
Northern Dynasty Minerals Ltd. *		1,100		10,314
Northgate Minerals Corp. *		5,500		14,986
Novagold Resources, Inc. *		2,200		12,634
Osisko Mining Corp. *		4,400		37,258
Pan American Silver Corp.		2,200		46,937
Quadra Mining Ltd. *		2,200		30,639
Red Back Mining, Inc. *		4,400		84,424
Rubicon Minerals Corp. *		2,200		9,429
SEMAFO, Inc. *		4,400		20,107
Sherritt International Corp.		5,500		38,663
Silver Standard Resources, Inc. *		1,100		18,535
Silver Wheaton Corp. *		6,600		100,285
Silvercorp Metals, Inc.		2,200		14,300
Taseko Mines Ltd. *		3,300		14,924
Thompson Creek Metals Co., Inc. *		2,200		30,119
Ventana Gold Corp. *		1,100		8,607
West Fraser Timber Co., Ltd.		1,100		38,111
Western Coal Corp. *		6,600		23,292

				1,629,773


Media 0.6%
Astral Media, Inc.		1,100		36,290
Cogeco Cable, Inc.		1,100		42,150
Groupe Aeroplan, Inc.		4,400		49,289
Quebecor, Inc., Class B		1,100		31,274

				159,003


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Biovail Corp.		3,300		48,612
MDS, Inc. *		2,200		18,234

				66,846


Real Estate 1.5%
Allied Properties Real Estate Investment Trust		1,100		19,878
Boardwalk Real Estate Investment Trust		1,100		41,026
Calloway Real Estate Investment Trust		1,100		21,210
Canadian Apartment Properties Real Estate Investment Trust		1,100		14,862
Canadian Real Estate Investment Trust		1,100		29,296
Chartwell Seniors Housing Real Estate Investment Trust		2,200		15,881
Cominar Real Estate Investment Trust		1,100		19,847
Dundee Real Estate Investment Trust		1,100		26,164
Extendicare Real Estate Investment Trust		2,200		20,336
First Capital Realty, Inc.		1,100		21,824
FirstService Corp. *		1,100		20,929

32 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
H&R Real Estate Investment Trust		2,200		34,136
InnVest Real Estate Investment Trust		2,200		11,739
Morguard Real Estate Investment Trust		1,100		13,457
Primaris Retail Real Estate Investment Trust		1,100		17,828
RioCan Real Estate Investment Trust		3,300		59,478

				387,891


Retailing 0.4%
Reitmans Canada Ltd., A Shares		1,100		16,444
RONA inc. *		3,300		49,612
Sears Canada, Inc. *		1,100		27,579

				93,635


Software & Services 0.4%
MacDonald, Dettwiler & Associates Ltd. *		1,100		41,015
Open Text Corp. *		1,100		53,691

				94,706


Technology Hardware & Equipment 0.2%
Celestica, Inc. *		4,400		44,668


Transportation 0.1%
Transat A.T., Inc., Class A *		1,100		19,649
TransForce, Inc.		1,100		9,689

				29,338


Utilities 0.5%
ATCO Ltd., Class I		1,100		50,059
Emera, Inc.		1,100		24,759
Fortis, Inc.		2,200		56,762

				131,580

				4,705,330

China 0.6%


Consumer Durables & Apparel 0.1%
China Hongxing Sports Ltd.		121,000		14,633


Consumer Services 0.1%
Ajisen China Holdings Ltd.		33,000		30,308


Food, Beverage & Tobacco 0.1%
Pine Agritech Ltd. *		143,000		13,733
Synear Food Holdings Ltd. *		88,000		18,781

				32,514


Materials 0.1%
China Nickel Resources Holding Co., Ltd. *		88,000		16,209


Retailing 0.1%
Intime Department Store Group Co., Ltd.		22,000		18,647


Software & Services 0.1%
Kingsoft Corp., Ltd.		22,000		18,788


Technology Hardware & Equipment 0.0%
BYD Electronic International Co., Ltd. *		11,000		9,182

				140,281

Cyprus 0.1%


Energy 0.1%
ProSafe SE		4,400		21,872

Denmark 1.3%


Banks 0.3%
Jyske Bank A/S *		1,243		43,374
Sydbank A/S *		1,452		35,810

				79,184


Capital Goods 0.1%
NKT Holding A/S *		418		23,109


Consumer Durables & Apparel 0.1%
Bang & Olufsen A/S *		1,001		11,196
IC Companys A/S *		440		19,081

				30,277


Energy 0.1%
Torm A/S		1,826		19,587


Health Care Equipment & Services 0.1%
GN Store Nord A/S *		4,686		25,434


Insurance 0.2%
Topdanmark A/S *		319		38,342


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
ALK-Abello A/S		220		16,298
Genmab A/S *		957		16,100

				32,398


Software & Services 0.1%
SimCorp A/S		143		25,277


Transportation 0.2%
DSV A/S *		3,630		56,611

				330,219

Finland 2.4%


Capital Goods 0.8%
Cargotec Corp., B Shares		803		21,654
Cramo Oyj		979		16,514
KCI Konecranes Oyj		1,078		29,688
Outotec Oyj		770		22,361
Ramirent Oyj *		1,848		16,847
Ruukki Group Oyj *		5,841		16,261
Uponor Oyj		1,067		19,046
Vacon Oyj		506		19,266
YIT Oyj		1,496		32,318

				193,955


Commercial & Professional Services 0.2%
Lassila & Tikanoja Oyj		935		19,383
Poyry Oyj		1,276		16,560

				35,943


Consumer Durables & Apparel 0.1%
Amer Sports Oyj, A Shares		2,849		31,532


Diversified Financials 0.2%
Pohjola Bank plc		4,147		46,124


Materials 0.3%
Huhtamaki Oyj		2,156		23,538
Kemira Oyj		1,133		18,956
M-real Oyj, B Shares *		7,579		17,894
Talvivaara Mining Co. plc *		3,520		20,412

				80,800

See financial notes 33

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Media 0.1%
Alma Media Corp.		1,903		19,478


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Orion Oyj, Class B		1,606		35,703


Real Estate 0.2%
Citycon Oyj		5,137		19,629
Sponda Oyj *		5,676		21,224

				40,853


Retailing 0.1%
Stockmann Oyj Abp, B Shares		792		24,697


Software & Services 0.1%
Tieto Oyj *		1,529		34,409


Telecommunication Services 0.2%
Elisa Oyj		2,717		56,694

				600,188

France 4.8%


Automobiles & Components 0.2%
Faurecia *		627		10,939
Valeo S.A. *		1,463		44,753
			��
				55,692


Capital Goods 0.5%
Carbone Lorraine S.A.		572		18,555
Nexans S.A.		572		40,475
Rexel S.A. *		1,606		20,821
Saft Groupe S.A.		484		17,741
Zodiac Aerospace		891		40,686

				138,278


Commercial & Professional Services 0.3%
Derichebourg S.A.		3,861		15,270
Seche Environnement S.A.		209		15,202
Teleperformance		1,243		39,711

				70,183


Consumer Durables & Apparel 0.2%
Beneteau *		946		15,627
Nexity		594		21,859
SEB S.A.		418		26,942

				64,428


Diversified Financials 0.1%
Financiere Marc de Lacharriere S.A.		330		17,044


Energy 0.3%
Bourbon S.A.		1,166		39,479
Etablissements Maurel et Prom		2,222		32,931

				72,410


Food & Staples Retailing 0.1%
Rallye S.A.		561		18,156


Food, Beverage & Tobacco 0.1%
Remy Cointreau S.A.		451		21,542


Insurance 0.1%
April Group		418		13,234


Materials 0.4%
Arkema		1,166		39,526
Rhodia S.A. *		1,925		36,687
S.A. des Ciments Vicat		198		15,027

				91,240


Media 0.5%
Canal +		2,519		20,097
Havas S.A.		8,712		35,739
IPSOS		704		24,499
M6-Metropole Television		1,727		42,824

				123,159


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Boiron S.A.		264		10,880
NicOx S.A. *		1,848		13,041
Stallergenes		220		17,681
Virbac S.A.		165		16,535

				58,137


Real Estate 0.4%
Fonciere Des Regions		583		58,263
Mercialys		759		27,273
Societe Immobiliere de Location pour l’Industrie et le Commerce		231		26,638

				112,174


Semiconductors & Semiconductor Equipment 0.1%
Silicon-On-Insulator Technologies *		1,452		19,122


Software & Services 0.3%
Alten *		726		19,741
Altran Technologies S.A. *		3,333		15,629
Groupe Steria SCA		605		17,041
UbiSoft Entertainment *		2,343		28,694

				81,105


Technology Hardware & Equipment 0.5%
Gemalto N.V. *		1,595		65,529
Ingenico S.A.		638		15,237
Neopost S.A.		605		49,184

				129,950


Transportation 0.3%
Groupe Eurotunnel S.A. Reg’d		8,899		90,586


Utilities 0.2%
Rubis		297		23,577
Sechilienne S.A.		737		22,530

				46,107

				1,222,547

Germany 4.6%


Automobiles & Components 0.2%
ElringKlinger AG		1,221		28,460
Leoni AG		781		14,826

				43,286


Banks 0.1%
Aareal Bank AG *		814		16,930


Capital Goods 1.5%
Bauer AG		385		17,433
Bilfinger Berger AG		605		38,236
Centrotherm Photovoltaics AG *		176		7,128
Conergy AG *		13,365		13,534
Demag Cranes AG		473		15,621
Deutz AG *		4,400		20,950
Gildemeister AG		1,276		16,508
Kloeckner & Co. SE *		704		16,414
Krones AG		385		20,283

34 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
KUKA AG *		1,078		15,300
MTU Aero Engines Holding AG		693		35,210
Nordex AG *		1,023		12,495
Pfeiffer Vacuum Technology AG		231		18,101
Rheinmetall AG		253		15,879
Roth & Rau AG *		407		13,697
SGL Carbon SE *		1,331		36,546
SMA Solar Technology AG		132		13,775
Tognum AG		2,068		35,419
Vossloh AG		242		23,812

				386,341


Commercial & Professional Services 0.1%
Interseroh SE		242		15,852


Consumer Durables & Apparel 0.1%
Gerry Weber International AG		561		18,531
Rational AG		88		14,862

				33,393


Diversified Financials 0.1%
MLP AG		2,200		21,235


Health Care Equipment & Services 0.1%
Rhoen Klinikum AG		1,232		30,499


Materials 0.4%
Aurubis AG		858		39,723
Fuchs Petrolub AG		286		23,848
Symrise AG		1,980		42,288

				105,859


Media 0.2%
Axel Springer AG		187		20,094
Sky Deutschland AG *		8,778		21,587

				41,681


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Morphosys AG *		682		14,519
Stada Arzneimittel AG		1,155		40,210

				54,729


Real Estate 0.3%
Alstria Office AG		1,254		13,862
Deutsche Euroshop AG		880		27,958
Deutsche Wohnen AG *		2,090		19,680
IVG Immobilien AG *		2,255		17,061

				78,561


Retailing 0.4%
BayWa AG		473		17,590
Douglas Holding AG		880		42,021
Fielmann AG		286		23,629
Praktiker Bau- und Heimwerkermaerkte Holding AG		2,156		18,268

				101,508


Semiconductors & Semiconductor Equipment 0.2%
Aixtron AG		1,617		47,665


Software & Services 0.4%
Software AG		374		43,348
United Internet AG Reg’d *		2,288		35,471
Wirecard AG		1,694		20,415

				99,234


Technology Hardware & Equipment 0.2%
Wincor Nixdorf AG		649		44,094


Telecommunication Services 0.1%
Freenet AG *		2,233		32,013


Utilities 0.0%
MVV Energie AG		264		11,241

				1,164,121

Greece 0.5%


Banks 0.2%
Alpha Bank A.E. ADR *		9,900		23,760
National Bank of Greece S.A. ADR *		7,062		27,259

				51,019


Food, Beverage & Tobacco 0.3%
Coca Cola Hellenic Bottling Co. S.A. ADR		3,300		80,718

				131,737

Hong Kong 3.0%


Automobiles & Components 0.2%
Geely Automobile Holdings Ltd.		55,000		27,630
Minth Group Ltd.		22,000		31,795

				59,425


Capital Goods 0.1%
China State Construction International Holdings Ltd.		44,000		16,096
Lonking Holdings Ltd.		11,000		7,000

				23,096


Consumer Durables & Apparel 0.3%
Daphne International Holdings Ltd.		22,000		16,918
Ports Design Ltd.		11,000		27,120
Stella International Holdings Ltd.		11,000		22,670

				66,708


Consumer Services 0.3%
REXLot Holdings Ltd.		275,000		37,548
SJM Holdings Ltd.		55,000		28,622

				66,170


Food, Beverage & Tobacco 0.1%
China Green Holdings Ltd.		33,000		38,044


Health Care Equipment & Services 0.2%
Mingyuan Medicare Development Co., Ltd. *		330,000		51,434


Materials 0.7%
AMVIG Holdings Ltd.		66,000		29,755
China Grand Forestry Green Resources Group Ltd. *		814,000		29,883
China Mining Resources Group Ltd. *		792,000		26,525
Sino-Forest Corp. *		4,400		85,215

				171,378


Real Estate 0.3%
Champion Real Estate Investment Trust		77,000		34,814
GZI Real Estate Investment Trust		88,000		34,119
Silver Grant International Industries Ltd.		22,000		8,558

				77,491

See financial notes 35

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Retailing 0.1%
Hengdeli Holdings Ltd.		44,000		16,776


Software & Services 0.1%
Hi Sun Technology China Ltd. *		33,000		18,703
Nan Hai Corp., Ltd. *		1,100,000		13,744

				32,447


Technology Hardware & Equipment 0.1%
Digital China Holdings Ltd.		22,000		34,573


Transportation 0.3%
Pacific Basin Shipping Ltd.		66,000		52,624
Road King Infrastructure Ltd.		33,000		24,229

				76,853


Utilities 0.2%
China Gas Holdings Ltd.		22,000		11,505
China Water Affairs Group Ltd.		110,000		43,925

				55,430

				769,825

Ireland 0.9%


Capital Goods 0.4%
Charter International plc		2,882		29,199
DCC plc		1,650		43,346
Grafton Group plc *		6,182		20,248
Kingspan Group plc *		3,773		25,745

				118,538


Consumer Services 0.1%
Paddy Power plc		660		20,941


Food, Beverage & Tobacco 0.1%
C&C Group plc		7,216		26,687


Health Care Equipment & Services 0.1%
United Drug plc		6,721		20,821


Insurance 0.1%
Irish Life & Permanent Group Holdings plc *		5,929		22,251


Materials 0.1%
Smurfit Kappa Group plc *		2,354		19,436

				228,674

Italy 2.1%


Banks 0.2%
Banca Piccolo Credito Valtellinese Scarl		4,576		29,819
Credito Emiliano S.p.A. *		2,134		13,994

				43,813


Capital Goods 0.4%
C.I.R. S.p.A-Compagnie Industriali Riunite *		9,955		20,827
Danieli & C Officine Meccaniche S.p.A.		1,221		15,005
Impregilo S.p.A.		10,021		30,018
Prysmian S.p.A.		2,717		46,905

				112,755


Consumer Durables & Apparel 0.2%
Geox S.p.A.		2,827		19,367
Indesit Co. S.p.A. *		1,364		16,083
Tod’s S.p.A.		308		20,155

				55,605


Diversified Financials 0.1%
Azimut Holding S.p.A.		2,519		29,100
Banca Generali S.p.A.		1,386		12,966

				42,066


Energy 0.1%
ERG S.p.A.		1,749		22,066


Food, Beverage & Tobacco 0.1%
Davide Campari-Milano S.p.A.		3,322		34,251


Health Care Equipment & Services 0.1%
DiaSorin S.p.A.		484		16,235


Insurance 0.2%
Milano Assicurazioni S.p.A.		7,293		19,457
Societa Cattolica di Assicurazioni S.c.r.l. *		1,232		36,804

				56,261


Materials 0.1%
Italmobiliare S.p.A. *		660		17,573


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Recordati S.p.A.		2,541		19,107


Software & Services 0.1%
Tiscali S.p.A. *		73,821		15,384


Transportation 0.1%
Ansaldo STS S.p.A.		1,298		25,065


Utilities 0.3%
ACEA S.p.A.		2,497		25,438
Hera S.p.A.		13,497		30,631
Iride S.p.A.		13,530		23,930

				79,999

				540,180

Japan 13.9%


Automobiles & Components 0.3%
Nissin Kogyo Co., Ltd.		3,300		49,575
TS Tech Co., Ltd.		1,100		18,716

				68,291


Banks 0.9%
Kiyo Holdings, Inc.		33,000		42,705
The Bank of Iwate Ltd.		1,100		62,263
The Chiba Kogyo Bank Ltd. *		4,400		33,026
The Fukui Bank Ltd.		11,000		36,392
The Oita Bank Ltd.		11,000		39,858
The Yachiyo Bank Ltd.		1,100		25,376

				239,620


Capital Goods 3.9%
Aica Kogyo Co., Ltd.		3,300		34,870
Central Glass Co., Ltd.		11,000		50,504
Chudenko Corp.		3,300		41,851
Daifuku Co., Ltd.		5,500		40,725
Furukawa Co., Ltd.		22,000		24,509
Futaba Corp.		2,200		38,472
Hanwa Co., Ltd.		11,000		43,695
Hitachi Zosen Corp. *		22,000		30,946

36 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Hoshizaki Electric Co., Ltd.		1,100		15,102
Inaba Denki Sangyo Co., Ltd.		1,100		25,487
Iseki & Co., Ltd. *		11,000		32,060
Iwatani Corp.		11,000		31,565
Komori Corp.		3,300		36,912
Kyowa Exeo Corp.		3,300		28,000
Meidensha Corp.		11,000		48,647
Nachi-Fujikoshi Corp.		11,000		31,070
Nichias Corp. *		11,000		47,656
Noritake Co., Ltd.		11,000		30,327
Noritz Corp.		2,200		31,367
Oiles Corp.		2,200		34,511
Okumura Corp.		11,000		39,734
OSG Corp.		3,300		33,124
Sanwa Holdings Corp.		11,000		32,307
SHO-BOND Holdings Co., Ltd.		1,100		21,241
Sintokogio Ltd.		4,400		31,688
Taikisha Ltd.		2,200		37,085
Toyo Tanso Co., Ltd.		1,100		57,002
Tsubakimoto Chain Co.		11,000		46,914

				997,371


Commercial & Professional Services 0.5%
Daiseki Co., Ltd.		1,100		21,600
Duskin Co., Ltd. *		2,200		40,774
Mitsubishi Pencil Co., Ltd.		2,200		30,476
Park24 Co., Ltd. *		3,300		34,313

				127,163


Consumer Durables & Apparel 1.0%
Foster Electric Co., Ltd.		1,100		27,728
Japan Wool Textile Co., Ltd.		11,000		72,413
Mizuno Corp.		11,000		50,504
Pioneer Corp. *		8,800		31,094
Sangetsu Co., Ltd.		2,200		51,172
Tomy Co., Ltd.		3,300		25,623

				258,534


Consumer Services 0.5%
Accordia Golf Co., Ltd. *		33		34,721
Doutor Nichires Holdings Co., Ltd.		3,300		42,185
Saizeriya Co., Ltd. *		2,200		40,329

				117,235


Diversified Financials 0.6%
Fuyo General Lease Co., Ltd.		1,100		30,624
IBJ Leasing Co., Ltd.		1,100		19,892
Ichiyoshi Securities Co., Ltd.		5,500		36,454
Japan Securities Finance Co., Ltd.		4,400		31,589
Tokai Tokyo Financial Holdings, Inc.		11,000		42,334

				160,893


Food, Beverage & Tobacco 0.6%
Fuji Oil Co., Ltd.		2,200		34,288
Hokuto Corp.		1,100		23,209
Megmilk Snow Brand Co., Ltd. *		3,300		51,841
Morinaga Milk Industry Co., Ltd.		11,000		45,800

				155,138


Health Care Equipment & Services 0.1%
Toho Holdings Co., Ltd.		2,200		29,757


Household & Personal Products 0.3%
Aderans Holdings Co., Ltd.		2,200		26,168
Fancl Corp.		1,100		22,281
Mandom Corp.		1,100		30,822

				79,271


Materials 2.4%
Adeka Corp.		3,300		30,711
Earth Chemical Co., Ltd. *		1,100		32,518
FP Corp.		1,100		51,679
Fujimi, Inc.		1,100		18,605
Kureha Corp.		11,000		51,618
Nifco, Inc.		1,100		24,806
Nippon Light Metal Co., Ltd. *		33,000		37,878
Nippon Soda Co., Ltd.		11,000		42,334
NOF Corp.		11,000		43,076
Sakai Chemical Industry Co., Ltd.		11,000		48,028
Sanyo Special Steel Co., Ltd.		11,000		43,943
Toagosei Co., Ltd.		11,000		42,953
Tokyo Ohka Kogyo Co., Ltd.		2,200		39,190
Toyo Ink Manufacturing Co., Ltd.		11,000		47,409
Yodogawa Steel Works Ltd.		11,000		45,428

				600,176


Pharmaceuticals, Biotechnology & Life Sciences 0.4%
ASKA Pharmaceutical Co., Ltd.		11,000		80,088
Nichi-iko Pharmaceutical Co., Ltd.		1,100		32,443

				112,531


Real Estate 0.1%
Hulic Co., Ltd.		3,300		25,066


Retailing 0.5%
EDION Corp.		3,300		34,795
Gulliver International Co., Ltd.		220		9,358
K’s Holdings Corp.		1,100		32,357
Tsutsumi Jewelry Co., Ltd.		2,200		44,562

				121,072


Semiconductors & Semiconductor Equipment 0.2%
Sanken Electric Co., Ltd.		11,000		38,497


Software & Services 0.4%
eAccess Ltd.		44		35,550
Fuji Soft, Inc.		2,200		36,962
Net One Systems Co., Ltd.		22		23,098

				95,610


Technology Hardware & Equipment 0.6%
HORIBA Ltd.		1,100		29,646
Hosiden Corp.		3,300		39,809
Nichicon Corp.		3,300		36,429
Ryosan Co., Ltd.		1,100		26,106
Ryoyo Electro Corp.		3,300		30,562

				162,552


Transportation 0.6%
Hitachi Transport System, Ltd.		2,200		30,352
Japan Airport Terminal Co., Ltd.		2,200		33,223
Sankyu, Inc.		11,000		52,856
The Sumitomo Warehouse Co., Ltd.		11,000		48,523

				164,954

				3,553,731

See financial notes 37

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Liechtenstein 0.1%


Banks 0.1%
Liechtensteinische Landesbank AG		242		15,734

Luxembourg 0.2%


Commercial & Professional Services 0.1%
Regus plc		15,906		20,268


Real Estate 0.1%
GAGFAH S.A.		1,848		16,988

				37,256

Netherlands 2.7%


Capital Goods 0.7%
Aalberts Industries N.V.		2,233		31,114
Arcadis N.V.		1,034		22,930
Imtech N.V.		1,408		43,090
Koninklijke BAM Groep N.V.		2,607		20,692
Koninklijke Boskalis Westminster N.V.		957		30,868
Wavin N.V.		10,329		20,016

				168,710


Commercial & Professional Services 0.1%
USG People N.V. *		1,408		22,875


Consumer Durables & Apparel 0.1%
Koninklijke Ten Cate N.V.		770		20,228
TomTom N.V. *		1,540		12,062

				32,290


Diversified Financials 0.2%
BinckBank N.V.		1,419		25,523
SNS REAAL N.V. *		3,784		19,303

				44,826


Food & Staples Retailing 0.1%
Sligro Food Group N.V.		682		21,881


Food, Beverage & Tobacco 0.3%
CSM		1,386		36,893
Nutreco Holding N.V.		759		45,068

				81,961


Health Care Equipment & Services 0.1%
Mediq N.V.		1,353		23,182


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Crucell N.V. *		1,727		33,113


Real Estate 0.5%
Eurocommercial Properties N.V.		869		33,253
Nieuwe Steen Investments Funds N.V.		1,111		22,440
VastNed Retail N.V.		440		28,012
Wereldhave N.V.		429		38,716

				122,421


Semiconductors & Semiconductor Equipment 0.1%
ASM International N.V. *		737		17,350


Software & Services 0.1%
Exact Holding		781		19,387
Unit 4 Agresso N.V. *		825		19,799

				39,186


Technology Hardware & Equipment 0.2%
OCE N.V. *		1,925		22,508
TKH Group N.V.		979		18,037

				40,545


Transportation 0.1%
Koninklijke Vopak N.V. *		176		12,973
Smit Internationale N.V.		231		19,624

				32,597

				680,937

New Zealand 0.4%


Consumer Durables & Apparel 0.0%
Fisher & Paykel Appliances Holdings Ltd. *		32,846		13,762


Energy 0.0%
New Zealand Oil & Gas Ltd.		11,033		11,710


Insurance 0.1%
TOWER Ltd.		11,979		15,893


Real Estate 0.1%
Goodman Property Trust		22,539		16,054


Transportation 0.1%
Freightways Ltd.		7,403		15,767
Mainfreight Ltd.		4,466		18,244

				34,011


Utilities 0.1%
Infratil Ltd.		15,807		17,882

				109,312

Norway 1.8%


Banks 0.1%
SpareBank 1 SMN		2,200		19,169
Sparebank 1 SR Bank		2,200		20,100

				39,269


Capital Goods 0.1%
Veidekke A.S.A. *		2,200		17,457


Commercial & Professional Services 0.1%
Tomra Systems A.S.A.		5,500		26,521


Diversified Financials 0.1%
ABG Sundal Collier Holding A.S.A.		11,000		14,238


Energy 0.9%
Aker A.S.A., Class A		1,100		28,475
Det Norske Oljeselskap A.S.A. *		2,200		10,497
DNO International A.S.A. *		22,000		24,194
Fred Olsen Energy A.S.A.		550		19,337
Frontline Ltd.		1,100		29,443
Golar LNG Ltd. *		1,100		12,376
Norwegian Energy Co. *		5,500		16,006
Petroleum Geo-Services A.S.A. *		3,300		41,791
Sevan Marine A.S.A. *		11,000		15,438
Songa Offshore SE *		4,400		21,514
TGS Nopec Geophysical Co. A.S.A. *		1,100		21,049

				240,120

38 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Food, Beverage & Tobacco 0.2%
Cermaq A.S.A. *		2,200		24,567
Marine Harvest A.S.A. *		44,000		38,413

				62,980


Media 0.1%
Schibsted A.S.A. *		1,100		27,172


Real Estate 0.1%
Norwegian Property A.S.A. *		11,000		21,217


Software & Services 0.1%
Atea A.S.A.		2,200		18,127

				467,101

Peru 0.1%


Materials 0.1%
Hochschild Mining plc		3,278		12,975

Portugal 0.5%


Capital Goods 0.3%
Mota-Engil, SGPS, S.A.		5,654		24,329
Sonae		27,797		30,917
Teixeira Duarte - Engenharia Construcoes S.A. *		18,997		21,699

				76,945


Materials 0.1%
Portucel-Empresa Produtora de Pasta e Papel S.A.		7,865		19,749
Semapa-Sociedade de Investimento e Gestao, SGPS, S.A.		1,870		18,040

				37,789


Utilities 0.1%
Redes Energeticas Nacionais S.A.		3,927		15,810

				130,544

Republic of Korea 2.8%


Banks 0.7%
KB Financial Group, Inc. ADR *		2,200		92,114
Shinhan Financial Group Co., Ltd. ADR *		1,100		79,970

				172,084


Materials 0.5%
POSCO ADR		1,100		127,006


Semiconductors & Semiconductor Equipment 0.2%
Samsung Electronics Co., Ltd. GDR Reg’d		143		45,688


Technology Hardware & Equipment 0.3%
LG Display Co., Ltd. ADR *		5,500		82,720


Telecommunication Services 0.6%
KT Corp. ADR		4,400		84,392
SK Telecom Co., Ltd. ADR		4,400		73,392

				157,784


Utilities 0.5%
Korea Electric Power Corp. ADR *		8,800		141,944

				727,226

Singapore 1.3%


Consumer Services 0.1%
Raffles Education Corp., Ltd.		121,000		33,140


Energy 0.2%
Ezra Holdings Ltd.		22,000		35,057
Straits Asia Resources Ltd.		11,000		15,807

				50,864


Food, Beverage & Tobacco 0.1%
Indofood Agri Resources Ltd. *		11,000		16,668


Materials 0.1%
OM Holdings Ltd.		13,772		20,843


Real Estate 0.6%
Ascendas Real Estate Investment Trust		33,000		45,308
CDL Hospitality Trusts		22,000		26,450
Mapletree Logistics Trust		55,000		30,910
Suntec Real Estate Investment Trust		55,000		50,864

				153,532


Transportation 0.1%
Singapore Airport Terminal Services Ltd.		22,000		40,848


Utilities 0.1%
Hyflux Ltd.		11,000		27,545

				343,440

South Africa 0.2%


Materials 0.2%
Aquarius Platinum Ltd. *		9,130		50,469
Great Basin Gold Ltd. *		6,600		10,740

				61,209

Spain 2.0%


Banks 0.1%
Banco Pastor S.A.		3,102		19,262


Capital Goods 0.3%
Abengoa S.A.		880		22,301
Construcciones y Auxiliar de Ferrocarriles S.A.		66		37,109
Obrascon Huarte Lain S.A.		1,474		32,708

				92,118


Commercial & Professional Services 0.1%
Prosegur, Compania de Seguridad S.A.		594		26,183


Consumer Services 0.1%
NH Hoteles S.A. *		5,324		23,759
Sol Melia S.A.		1,903		13,764

				37,523


Diversified Financials 0.2%
Bolsas y Mercados Espanoles S.A.		1,606		42,377


Energy 0.1%
Tecnicas Reunidas S.A.		330		18,600


Food, Beverage & Tobacco 0.3%
Ebro Puleva S.A.		2,244		44,313
Viscofan S.A.		1,199		29,878

				74,191

See financial notes 39

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Insurance 0.1%
Grupo Catalana Occidente S.A.		1,254		25,721


Materials 0.1%
Grupo Empresarial Ence S.A. *		4,312		15,565
Tubacex S.A.		4,081		14,953

				30,518


Media 0.1%
Antena 3 de Television S.A.		1,749		17,448


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Almirall S.A.		1,111		14,949
Faes Farma S.A.		4,191		21,677
Zeltia S.A. *		4,829		25,504

				62,130


Transportation 0.2%
Iberia Lineas Aereas de Espana S.A. *		13,695		41,435


Utilities 0.1%
Sociedad General de Aguas de Barcelona S.A., Class A		880		23,899

				511,405

Sweden 4.2%


Capital Goods 0.6%
Cardo AB		616		19,401
Hexagon AB, B Shares		2,937		39,541
Lindab International AB		1,859		16,206
NCC AB, B Shares		1,353		22,020
Peab AB		3,938		22,923
Saab AB, B Shares		1,034		14,066
Trelleborg AB, B Shares *		4,543		29,383

				163,540


Commercial & Professional Services 0.2%
Intrum Justitia AB		1,342		17,360
Loomis AB, B Shares		2,035		24,750
Niscayah Group AB		9,801		19,706

				61,816


Consumer Durables & Apparel 0.2%
Husqvarna AB, A Shares *		3,740		22,507
JM AB *		1,144		18,417

				40,924


Consumer Services 0.2%
Betsson AB *		1,144		18,619
Rezidor Hotel Group AB *		4,477		15,737
SkiStar AB		913		15,886

				50,242


Diversified Financials 0.7%
Avanza Bank Holding AB		814		20,487
Investment AB Oresund		1,155		21,558
Kinnevik Investment AB, B Shares		3,597		58,921
L.E. Lundbergforetagen AB, B Shares		418		20,512
Ratos AB, B Shares		2,068		62,806

				184,284


Energy 0.1%
Lundin Petroleum AB *		4,719		35,929


Food & Staples Retailing 0.2%
Axfood AB		847		26,676
Hakon Invest AB		1,815		31,262

				57,938


Food, Beverage & Tobacco 0.1%
AarhusKarlshamn AB		979		26,154


Health Care Equipment & Services 0.5%
Elekta AB, B Shares		1,089		27,561
Getinge AB, B Shares		3,894		90,011

				117,572


Materials 0.1%
Billerud AB *		2,222		15,699
Hoganas AB, B Shares		825		19,430

				35,129


Media 0.3%
Eniro AB *		3,740		12,989
Modern Times Group, B Shares		1,023		56,312

				69,301


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Meda AB, A Shares		4,356		48,845


Real Estate 0.6%
Castellum AB		3,322		33,046
Fabege AB		3,905		25,422
Hufvudstaden AB, A Shares		2,332		18,854
Kungsleden AB		3,377		23,741
Wallenstam AB, B Shares		1,056		18,708
Wihlborgs Fastigheter AB		1,089		22,049

				141,820


Retailing 0.1%
Clas Ohlson AB, B Shares		737		14,249
Mekonomen AB		814		16,996

				31,245


Technology Hardware & Equipment 0.1%
Axis Communications AB		1,353		19,262

				1,084,001

Switzerland 5.1%


Automobiles & Components 0.1%
Rieter Holding AG Reg’d *		99		24,547


Banks 0.5%
Banque Cantonale Vaudoise Reg’d		66		29,438
Basler Kantonalbank		198		22,701
St Galler Kantonalbank AG Reg’d		44		20,138
Valiant Holding AG Reg’d		330		62,690

				134,967


Capital Goods 1.0%
Belimo Holding AG Reg’d		22		23,665
Bobst Group AG Reg’d *		495		17,188
Bucher Industries AG Reg’d		253		29,951
Georg Fischer AG Reg’d *		99		29,992
Huber & Suhner AG Reg’d		495		19,448
Implenia AG Reg’d *		715		19,061
Kaba Holding AG B Shares Reg’d		110		26,608
Meyer Burger Technology AG *		440		9,392
Schweiter Technologies AG		44		21,594

40 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


		Number		Value
Security		of Shares		($)
Sulzer AG Reg’d			594		53,154
Von Roll Holding AG			2,508		14,845

					264,898


Consumer Durables & Apparel 0.2%
Forbo Holding AG Reg’d *			66		22,563
Metall Zug AG, B Shares Reg’d			11		26,762
Schulthess Group Reg’d			308		13,608

					62,933


Consumer Services 0.1%
Kuoni Reisen Holding AG Reg’d			55		19,482
Orascom Development Holding AG *			242		16,557

					36,039


Diversified Financials 0.3%
Bank Sarasin & Cie AG B Shares Reg’d *			792		26,208
Partners Group Holding AG			99		12,532
Swissquote Group Holding S.A. Reg’d	��		363		16,918
Vontobel Holding AG Reg’d			726		21,622

					77,280


Food, Beverage & Tobacco 0.3%
Aryzta AG			1,540		57,779
Barry Callebaut AG Reg’d *			44		26,474

					84,253


Health Care Equipment & Services 0.1%
Galenica AG Reg’d			99		37,259


Insurance 0.2%
Helvetia Holding AG Reg’d			121		38,461


Materials 0.5%
Clariant AG Reg’d *			4,081		44,279
Ems-Chemie Holding AG Reg’d			297		36,821
Ferrexpo plc			4,928		21,157
Sika AG			11		15,421

					117,678


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Acino Holding AG Reg’d			110		16,816
Tecan Group AG Reg’d			231		16,042

					32,858


Real Estate 0.7%
Allreal Holding AG Reg’d			187		21,789
Intershop Holdings AG			66		18,626
Mobimo Holding AG Reg’d *			143		24,526
PSP Swiss Property AG Reg’d *			935		55,561
Swiss Prime Site AG Reg’d *			803		46,258

					166,760


Retailing 0.2%
Dufry Group Reg’d *			319		21,394
Valora Holding AG Reg’d			110		24,701

					46,095


Software & Services 0.1%
Temenos Group AG Reg’d *			968		24,363


Technology Hardware & Equipment 0.4%
Ascom Holding AG Reg’d *			1,496		14,921
Kudelski S.A.			1,012		26,998
Logitech International S.A. Reg’d *			3,267		50,369

					92,288


Transportation 0.2%
Flughafen Zuerich AG Reg’d			55		16,406
Panalpina Welttransport Holding AG Reg’d			352		23,624

					40,030


Utilities 0.1%
Romande Energie Holding S.A. Reg’d			11		18,805

					1,299,514

United Kingdom 16.4%


Automobiles & Components 0.2%
GKN plc *			29,788		51,063


Banks 0.1%
Paragon Group of Cos. plc			7,568		15,497


Capital Goods 2.3%
Ashtead Group plc			13,178		17,023
Balfour Beatty plc			12,925		54,289
Bodycote plc			6,424		17,467
Carillion plc			7,788		33,589
Chemring Group plc			638		32,237
Chloride Group plc			7,106		19,981
Cookson Group plc *			5,467		38,286
Fenner plc			4,741		13,476
IMI plc			5,170		44,470
Keller Group plc			1,881		18,957
Kier Group plc			1,078		16,444
Meggitt plc			12,232		51,657
Melrose plc			9,625		25,511
Morgan Crucible Co. plc			7,216		18,950
Qinetiq Group plc			13,519		25,953
Senior plc			12,408		14,829
SIG plc *			14,938		26,062
Spirax-Sarco Engineering plc			1,397		27,010
The Weir Group plc			3,476		41,329
Travis Perkins plc *			3,861		39,324
Ultra Electronics Holdings plc			1,265		25,537

					602,381


Commercial & Professional Services 2.0%
Aggreko plc			4,521		67,107
Babcock International Group plc			4,477		35,885
Connaught plc			3,707		16,993
De La Rue plc			2,024		28,826
Homeserve plc			1,188		30,746
Intertek Group plc			2,739		53,457
ITE Group plc			7,150		14,722
Michael Page International plc			6,402		36,169
Mitie Group plc			7,744		26,680
Mouchel Group plc			3,850		12,353
RPS Group plc			5,830		15,976
Serco Group plc			8,635		72,763
Shanks Group plc			9,966		17,721
The Davis Service Group plc			3,949		24,408
VT Group plc			3,597		36,553
WS Atkins plc			2,541		22,301

					512,660


Consumer Durables & Apparel 0.8%
Barratt Developments plc *			19,272		33,389
Bellway plc			2,475		25,057

See financial notes 41

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Bovis Homes Group plc *		3,322		18,454
Pace plc		6,160		16,411
Persimmon plc *		5,786		34,362
Redrow plc *		8,129		16,583
Taylor Wimpey plc *		63,052		34,173
The Berkeley Group Holdings plc *		2,706		30,568

				208,997


Consumer Services 0.9%
Dignity plc		1,551		15,927
Domino’s Pizza UK & IRL plc		2,695		13,786
Enterprise Inns plc *		12,199		18,850
Greene King plc		4,444		29,193
J.D. Wetherspoon plc *		3,069		21,002
Marston’s plc		15,103		20,785
Millennium & Copthorne Hotels plc		3,597		22,928
Mitchells & Butlers plc *		7,898		34,088
Punch Taverns plc *		15,950		18,661
Rank Group plc *		11,154		17,405
Restaurant Group plc		4,532		14,241

				226,866


Diversified Financials 1.4%
Aberdeen Asset Management plc		21,461		37,508
Ashmore Group plc		4,356		15,584
BlueBay Asset Management plc		2,871		16,224
Close Brothers Group plc		2,805		28,803
F&C Asset Management plc		15,323		12,935
Hargreaves Lansdown plc		979		4,792
Henderson Group plc		11,880		22,698
IG Group Holdings plc		6,699		39,438
Intermediate Capital Group plc		8,316		30,689
International Personal Finance		5,874		17,840
Investec plc		8,492		57,518
London Stock Exchange Group plc		3,707		37,530
Rathbone Brothers		1,386		17,260
Tullett Prebon plc		4,565		19,855

				358,674


Energy 1.2%
Acergy S.A.		2,200		36,254
Dana Petroleum plc *		1,837		30,651
Heritage Oil plc *		3,146		22,405
Hunting plc		3,025		27,056
JKX Oil & Gas plc		3,740		14,309
John Wood Group plc		6,831		37,407
Premier Oil plc *		2,145		35,856
Salamander Energy plc *		4,048		15,413
SOCO International plc *		1,452		33,909
Subsea 7, Inc. *		2,200		40,461
Wellstream Holdings plc		2,585		19,677

				313,398


Food, Beverage & Tobacco 0.3%
Britvic plc		4,048		26,259
Dairy Crest Group plc		3,168		17,387
Premier Foods plc *		55,033		29,072

				72,718


Health Care Equipment & Services 0.2%
Southern Cross Healthcare Ltd. *		5,159		11,860
SSL International plc		3,036		34,156

				46,016


Household & Personal Products 0.1%
McBride plc		3,993		14,590
PZ Cussons plc		3,883		17,007

				31,597


Insurance 0.9%
Amlin plc		8,778		52,759
Beazley plc		13,519		23,216
Brit Insurance Holdings N.V.		1,927		22,589
Catlin Group Ltd.		6,875		36,287
Hiscox Ltd.		7,150		38,708
Jardine Lloyd Thompson Group plc		2,904		21,858
Lancashire Holdings Ltd.		3,597		26,285
St James’s Place plc		3,311		12,894

				234,596


Materials 0.7%
Croda International plc		2,002		27,431
DS Smith plc		9,614		17,007
Filtrona plc		6,204		17,662
Mondi plc		6,985		40,473
Petropavlovsk plc		3,322		47,742
Victrex plc		1,650		21,854

				172,169


Media 0.5%
Informa plc		10,802		55,173
Rightmove plc		2,255		21,800
Trinity Mirror plc *		6,622		13,317
Yell Group plc *		53,152		32,036

				122,326


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
BTG plc *		6,083		16,669
Genus plc		1,562		16,515
Hikma Pharmaceuticals plc		2,464		20,632

				53,816


Real Estate 0.7%
Atrium European Real Estate Ltd.		4,015		25,588
Big Yellow Group plc *		3,366		16,280
Derwent London plc		1,518		29,927
Grainger plc		7,139		13,868
Great Portland Estates plc		5,929		25,373
Helical Bar plc		2,871		13,659
Savills plc		3,608		17,116
Shaftesbury plc		4,070		23,279
Unite Group plc *		3,839		16,984

				182,074


Retailing 1.0%
Carpetright plc		1,045		14,819
Debenhams plc *		26,268		25,094
DSG International plc *		72,534		33,879
Galiform plc *		14,542		18,043
Game Group plc		12,144		15,160
Halfords Group plc		4,169		28,821
HMV Group plc		13,123		13,785
Inchcape plc *		91,938		35,622
Kesa Electricals plc		12,397		21,610
Mothercare plc		2,057		20,324
N Brown Group plc		5,357		17,583
WH Smith plc		3,443		24,054

				268,794

42 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Semiconductors & Semiconductor Equipment 0.3%
ARM Holdings plc		18,436		57,201
CSR plc *		3,069		22,193

				79,394


Software & Services 0.7%
Aveva Group plc		1,441		22,596
Dimension Data Holdings plc		29,678		39,873
Fidessa Group plc		913		19,320
Micro Focus International plc		3,938		28,303
Misys plc *		9,746		33,799
Telecity Group plc *		3,311		18,802
Xchanging plc		6,094		17,071

				179,764


Technology Hardware & Equipment 0.7%
Electrocomponents plc		9,207		25,987
Halma plc		7,348		27,877
Laird plc		7,667		14,905
Premier Farnell plc		8,239		22,991
Rotork plc		1,606		31,736
Spectris plc		2,420		29,032
Spirent Communications plc		11,891		18,845

				171,373


Transportation 0.9%
Arriva plc		3,751		29,238
BBA Aviation plc		6,303		16,034
easyJet plc *		5,412		34,119
FirstGroup plc		8,360		45,258
Forth Ports plc		990		16,082
Go-Ahead Group plc		880		18,193
National Express Group plc		10,472		32,363
Stagecoach Group plc		12,914		34,386

				225,673


Utilities 0.3%
Northumbrian Water Group plc		6,347		26,640
Pennon Group plc		5,841		46,640

				73,280

				4,203,126

United States 0.4%


Health Care Equipment & Services 0.2%
SXC Health Solutions Corp. *		1,100		54,909


Materials 0.2%
Gerdau Ameristeel Corp.		3,300		23,167
Golden Star Resources Ltd. *		4,400		13,654
Jaguar Mining, Inc. *		2,200		20,690

				57,511

				112,420

Total Common Stock (Cost $25,930,525)				25,334,142




Other Investment Companies 0.6% of net assets

Guernsey 0.0%
FCPT Ltd.		7,854		11,234

Luxembourg 0.1%
ProLogis European Properties *		3,861		26,266

Switzerland 0.2%
BB Biotech AG		429		29,492
Schroder ImmoPLUS		33		29,591

				59,083

United States 0.3%
State Street Institutional Liquid Reserves Fund		70,875		70,875

Total Other Investment Companies (Cost $167,834)				167,458




Preferred Stock 0.2% of net assets

Germany 0.2%
Fuchs Petrolub AG		187		16,483
Hugo Boss AG		418		14,204
ProSiebenSat.1 Media AG		1,683		24,714

				55,401

Total Preferred Stock (Cost $53,242)				55,401



End of Investments

At 2/28/10, the tax basis cost of the fund’s investments was $26,151,601 and the unrealized appreciation and depreciation were $410,246 and ($1,004,846), respectively, with a net unrealized depreciation of ($594,600).


*		Non-income producing security.


ADR —		American Depositary Receipt
GDR —		Global Depositary Receipt
Reg’d —		Registered

See financial notes 43

Schwab International Small-Cap Equity ETF

Statement of

Assets and Liabilities

As of February 28, 2010 (unaudited)




Assets
Investments, at value (cost $26,151,601)		$25,557,001
Foreign currency, at value (cost $1,107)		1,108
Receivables:
Dividends		13,172
Foreign tax reclaims		155
Interest	+	14


Total assets		25,571,450


Liabilities
Payables:
Investment adviser and administrator fees		860


Total liabilities		860


Net Assets
Total assets		25,571,450
Total liabilities	—	860


Net assets		$25,570,590
Net Assets by Source
Capital received from investors		26,201,413
Net investment income not yet distributed		13,140
Net realized capital losses		(49,257	)
Net unrealized capital losses		(594,706	)

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$25,570,590

1,100,001

$23.25

44 See financial notes

Schwab International Small-Cap Equity ETF

Statement of

Operations

For January 13, 2010* through February 28, 2010 (unaudited)




Investment Income
Dividends (net of foreign withholding tax of $1,908)		$20,134
Interest	+	28


Total investment income		20,162


Expenses
Investment adviser and administrator fees		7,022


Total expenses		7,022


Net investment income		13,140


Realized and Unrealized Gains (Losses)
Net realized losses on investments		(42,492	)
Net realized losses on foreign currency transactions	+	(6,765	)


Net realized losses		(49,257	)
Net unrealized losses on investments		(594,600	)
Net unrealized losses on foreign currency translations	+	(106	)


Net unrealized losses	+	(594,706	)


Net realized and unrealized losses		(643,963	)


Net decrease in net assets resulting from operations		$(630,823	)


*	Commencement of operations.

See financial notes 45

Schwab International Small-Cap Equity ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on January 13, 2010, it has no prior report period.

Figures for the current period are unaudited.




Operations


		*1/13/10-02/28/10**
Net investment income		$13,140
Net realized losses		(49,257)
Net unrealized losses	+	(594,706)


Net decrease in net assets resulting from operations		$(630,823)




Transactions in Fund Shares


		*1/13/10-02/28/10**
		SHARES		VALUE
Shares Sold			1,100,001		$26,201,413
Shares Redeemed	+		—		—


Net transactions in fund shares			1,100,001		$26,201,413




Shares Outstanding and Net Assets


		*1/13/10-02/28/10**
		SHARES		NET ASSETS
Beginning of period			—		$—
Total increase	+		1,100,001		25,570,590


End of period			1,100,001		$25,570,590



Net investment income not yet distributed					$13,140


*	Commencement of operations.

46 See financial notes

Schwab Emerging Markets Equity ETF ^tm

Financial Statements

Financial Highlights


	1/13/10¹–
	2/28/10*


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.01
Net realized and unrealized gains (losses)		(1.88	)

Total from investment operations		(1.87	)

Net asset value at end of period		23.13

Total return (%)		(7.48	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.35	³
Gross operating expenses		0.35	³
Net investment income (loss)		7.33	³
Portfolio turnover rate⁴		1	²
Net assets, end of period ($ x 1,000)		41,636

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Portfolio turnover rate excludes securities received or delivered from processing of in kind creations or redemptions.

See financial notes 47

Schwab Emerging Markets Equity ETF

Portfolio Holdings as of February 28, 2010 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	85	.8%	Common Stock		36,977,246		35,741,108
	3	.3%	Other Investment Company		1,375,621		1,375,621
	10	.8%	Preferred Stock		4,530,341		4,492,370


	99	.9%	Total Investments		42,883,208		41,609,099
	0	.1%	Other Assets and Liabilities, Net				26,836


	100	.0%	Net Assets				41,635,935


	Number		Value
Security	of Shares		($)

Common Stock 85.8% of net assets

Brazil 8.4%


Banks 0.6%
Banco do Brasil S.A.		10,800		177,732
Banco Santander Brasil S.A.		7,200		85,134

				262,866


Capital Goods 0.3%
Empresa Brasileira de Aeronautica S.A. *		10,800		58,567
Weg S.A.		5,400		52,716

				111,283


Consumer Durables & Apparel 0.1%
Cyrela Brazil Realty S.A.		3,600		44,876


Diversified Financials 0.5%
BM&F BOVESPA S.A.		28,800		188,497


Energy 1.9%
OGX Petroleo e Gas Participacoes S.A.		9,000		78,358
Petroleo Brasileiro S.A.		34,200		731,642

				810,000


Food, Beverage & Tobacco 0.9%
BRF - Brasil Foods S.A. *		5,400		131,642
Companhia de Bebidas das Americas		500		41,219
Cosan S.A. Industria e Comercio *		1,800		23,423
JBS S.A.		23,400		117,453
Souza Cruz S.A.		1,800		61,512

				375,249


Household & Personal Products 0.4%
Hypermarcas S.A. *		1,800		21,463
Natura Cosmeticos S.A.		7,200		132,537

				154,000


Insurance 0.0%
Porto Seguro S.A. *		1,800		17,960


Materials 2.3%
Companhia Siderurgica Nacional S.A.		7,500		245,232
Gerdau S.A.		1,800		19,960
Usinas Siderurgicas de Minas Gerais S.A.		1,800		50,946
Vale S.A.		23,400		652,587

				968,725


Software & Services 0.4%
Cielo S.A.		7,200		56,318
Redecard S.A.		7,200		104,677

				160,995


Telecommunication Services 0.1%
Tele Norte Leste Participacoes S.A.		1,800		37,314
Tim Participacoes S.A. *		5,400		21,940

				59,254


Transportation 0.5%
All America Latina Logistica S.A.		9,000		80,199
Companhia de Concessoes Rodoviarias		5,400		113,881

				194,080


Utilities 0.4%
Companhia de Saneamento Basico do Estado de Sao Paulo *		1,800		30,199
CPFL Energia S.A.		1,800		36,955
EDP - Energias do Brasil S.A.		1,800		35,075
Light S.A.		1,800		26,517
Tractebel Energia S.A.		3,600		41,214

				169,960

				3,517,745

Chile 1.7%


Banks 0.2%
Banco de Chile		431,910		43,400
Banco Santander Chile S.A.		667,782		41,020
Corpbanca S.A.		2,270,772		19,158

				103,578


Capital Goods 0.3%
Empresas Copec S.A.		6,696		105,623


Food & Staples Retailing 0.1%
Cencosud S.A.		9,000		34,637


Materials 0.3%
Cap S.A.		1,728		54,056
Sociedad Quimica y Minera de Chile S.A., B Shares		1,674		61,571

				115,627


Retailing 0.2%
S.A.C.I. Falabella S.A.		13,014		73,527


Telecommunication Services 0.0%
Empresa Nacional de Telecomunicaciones S.A.		1,458		20,594


Transportation 0.1%
Lan Airlines S.A.		1,548		27,059


Utilities 0.5%
AES Gener S.A.		40,284		18,933
Colbun S.A.		105,138		28,305

48 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Empresa Nacional de Electricidad S.A.		56,970		93,753
Enersis S.A.		171,648		74,166

				215,157

				695,802

China 12.0%


Automobiles & Components 0.1%
Dongfeng Motor Group Co., Ltd., H Shares		36,000		52,307


Banks 4.3%
Bank of China Ltd., H Shares		774,000		374,869
Bank of Communications Co., Ltd., H Shares		126,000		138,118
China CITIC Bank Corp., Ltd., H Shares		144,000		96,268
China Construction Bank Corp., H Shares		684,000		516,303
China Merchants Bank Co., Ltd., H Shares		54,000		132,994
China Minsheng Banking Corp., Ltd., H Shares *		54,000		56,203
Industrial & Commercial Bank of China Ltd., H Shares		648,000		458,245

				1,773,000


Capital Goods 0.8%
China Communications Construction Co., Ltd., H Shares		72,000		67,332
China International Marine Containers (Group) Co., Ltd., B Shares		27,000		37,909
China National Materials Co., Ltd., H Shares		36,000		22,629
China Railway Construction Corp., Ltd., H Shares		36,000		47,207
China Railway Group Ltd., H Shares *		72,000		53,513
China South Locomotive & Rolling Stock Corp., Ltd., H Shares		36,000		25,273
Metallurgical Corp. of China Ltd., H Shares *		54,000		30,814
Shanghai Zhenhua Heavy Industry Co., Ltd., B Shares		34,200		25,889

				310,566


Energy 2.4%
China Coal Energy Co., H Shares		54,000		85,834
China Oilfield Services Ltd., H Shares		36,000		49,339
China Petroleum & Chemical Corp., H Shares		252,000		197,683
China Shenhua Energy Co., Ltd., H Shares		45,000		193,022
Inner Mongolia Yitai Coal Co., Ltd., B Shares		5,400		49,669
PetroChina Co., Ltd., H Shares		324,000		360,587
Yanzhou Coal Mining Co., Ltd., H Shares		36,000		76,421

				1,012,555


Health Care Equipment & Services 0.2%
Sinopharm Medicine Holdings Co., Ltd., H Shares *		14,400		64,828


Insurance 2.0%
China Life Insurance Co., Ltd., H Shares		108,000		478,556
China Pacific Insurance (Group) Co., Ltd., H Shares *		14,400		58,707
PICC Property & Casualty Co., Ltd., H Shares *		72,000		65,106
Ping An Insurance (Group) Co., of China Ltd., H Shares		27,000		205,195

				807,564


Materials 0.8%
Aluminum Corp. of China Ltd., H Shares *		72,000		69,558
Angang Steel Co., Ltd., H Shares		36,000		65,941
China Bluechemical Ltd., H Shares		36,000		23,093
China National Building Material Co., Ltd., H Shares		36,000		61,860
Jiangxi Copper Co., Ltd., H Shares		18,000		36,494
Maanshan Iron & Steel Co., Ltd., H Shares *		36,000		21,609
Zijin Mining Group Co., Ltd., H Shares		72,000		61,303

				339,858


Real Estate 0.3%
China Vanke Co., Ltd., B Shares		30,600		32,676
Guangzhou R&F Properties Co., Ltd., H Shares		14,400		21,368
Shanghai Lujiazui Finance & Trade Zone Development Co., Ltd., B Shares		14,400		26,251
Sino-Ocean Land Holdings Ltd.		63,000		55,588

				135,883


Technology Hardware & Equipment 0.2%
BYD Co., Ltd., H Shares *		9,000		70,022
ZTE Corp., H Shares		3,600		22,235

				92,257


Telecommunication Services 0.3%
China Telecom Corp., Ltd., H Shares		288,000		126,131


Transportation 0.5%
Air China Ltd., H Shares *(a)		36,000		31,393
China COSCO Holdings Co., Ltd., H Shares		45,000		56,052
China Shipping Container Lines Co., Ltd., H Shares *		90,000		35,822
China Shipping Development Co., Ltd., H Shares		36,000		61,118
Zhejiang Expressway Co., Ltd., H Shares		36,000		32,646

				217,031


Utilities 0.1%
China Longyuan Power Group Corp., H Shares *		18,000		21,957
Datang International Power Generation Co., Ltd., H Shares		72,000		32,553

				54,510

				4,986,490

See financial notes 49

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Colombia 0.6%


Banks 0.3%
Bancolombia S.A. ADR		2,592		120,217


Energy 0.3%
Ecopetrol S.A. ADR		5,436		146,283

				266,500

Czech Republic 0.7%


Banks 0.1%
Komercni Banka A/S		288		56,812


Materials 0.1%
Unipetrol A/S *		3,600		25,660


Telecommunication Services 0.1%
Telefonica O2 Czech Republic A/S		1,746		41,239


Utilities 0.4%
CEZ A/S		3,348		153,240

				276,951

Egypt 0.6%


Banks 0.2%
Commercial International Bank GDR		6,552		74,693


Capital Goods 0.3%
Orascom Construction Industries GDR		2,412		102,872


Telecommunication Services 0.1%
Orascom Telecom Holding SAE GDR - Reg’d		11,514		61,254

				238,819

Hong Kong 5.4%


Automobiles & Components 0.2%
Denway Motors Ltd.		108,000		60,098


Capital Goods 0.4%
Beijing Enterprises Holdings Ltd.		9,000		56,516
Citic Pacific Ltd.		18,000		40,065
Shanghai Industrial Holdings Ltd.		18,000		77,325

				173,906


Energy 0.7%
CNOOC Ltd.		162,000		254,164
CNPC Hong Kong Ltd.		36,000		45,444

				299,608


Food, Beverage & Tobacco 0.1%
China Agri-Industries Holdings Ltd.		18,000		25,875
China Foods Ltd.		36,000		31,626

				57,501


Insurance 0.1%
China Taiping Insurance Holdings Co., Ltd. *		18,000		55,762


Materials 0.1%
Sinofert Holdings Ltd.		72,000		40,158


Real Estate 0.6%
China Overseas Land & Investment Ltd.		72,000		145,793
China Resources Land Ltd.		36,000		74,751
Yuexiu Property Co., Ltd.		108,000		27,962

				248,506


Retailing 0.3%
China Resources Enterprise Ltd.		36,000		126,363


Telecommunication Services 2.2%
China Mobile Ltd.		72,000		710,415
China Unicom (Hong Kong) Ltd.		180,000		215,628

				926,043


Transportation 0.5%
China Merchants Holdings International Co., Ltd.		36,000		129,377
Cosco Pacific Ltd.		36,000		55,832

				185,209


Utilities 0.2%
China Resources Power Holdings Co., Ltd.		36,000		71,134

				2,244,288

Hungary 0.7%


Banks 0.3%
OTP Bank Nyrt. plc *		4,464		123,185


Energy 0.2%
MOL Hungarian Oil and Gas Nyrt. *		1,188		107,072


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Richter Gedeon Nyrt.		216		45,049


Telecommunication Services 0.1%
Magyar Telekom Telecommunications plc		10,008		36,282

				311,588

India 11.2%


Automobiles & Components 0.4%
Bajaj Auto Ltd.		1,566		61,550
Bharat Forge Ltd.		2,880		15,335
Hero Honda Motors Ltd.		1,278		49,839
Mahindra & Mahindra Ltd.		1,512		33,136
Maruti Suzuki India Ltd.		192		6,106

				165,966


Banks 1.8%
Axis Bank Ltd.		4,428		107,860
Bank of Baroda		1,926		24,313
Canara Bank Ltd.		3,402		29,072
HDFC Bank Ltd.		3,042		112,760
Housing Development Finance Corp., Ltd.		3,042		165,253
ICICI Bank Ltd.		7,938		149,618
Oriental Bank of Commerce		3,798		22,571
State Bank of India		2,070		88,358
Union Bank of India Ltd.		4,860		27,059

				726,864


Capital Goods 1.4%
ABB Ltd.		1,638		28,315
Adani Enterprises Ltd.		2,988		31,523
Aditya Birla Nuvo Ltd.		1,314		24,026

50 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Bharat Heavy Electricals Ltd.		2,016		103,194
Crompton Greaves Ltd.		2,844		25,692
Jaiprakash Associates Ltd.		22,194		63,759
Larsen & Toubro Ltd.		6,174		211,580
Punj Lloyd Ltd.		4,500		17,100
Siemens India Ltd.		2,502		37,393
Suzlon Energy Ltd. *		11,826		18,481
Tata Motors Ltd.		2,376		36,876

				597,939


Diversified Financials 0.3%
Bajaj Holdings & Investment Ltd.		1,584		20,437
Infrastructure Development Finance Co., Ltd.		15,426		53,650
Kotak Mahindra Bank Ltd.		2,142		34,236
Reliance Capital Ltd.		1,818		30,942

				139,265


Energy 1.8%
Bharat Petroleum Corp., Ltd.		1,944		23,606
Cairn India Ltd. *		5,760		33,294
Essar Oil Ltd. *		16,956		48,214
Hindustan Petroleum Corp., Ltd.		3,330		24,849
Indian Oil Corp., Ltd.		3,438		23,564
Oil & Natural Gas Corp., Ltd.		3,942		95,718
Reliance Industries Ltd.		21,852		464,151
The Great Eastern Shipping Co., Ltd.		3,186		18,140

				731,536


Food, Beverage & Tobacco 0.6%
ITC Ltd.		38,394		194,447
Nestle India Ltd.		468		26,605
United Spirits Ltd.		1,080		31,127

				252,179


Household & Personal Products 0.2%
Colgate-Palmolive (India) Ltd.		1,422		21,317
Hindustan Unilever Ltd.		13,590		69,844

				91,161


Materials 1.2%
Hindalco Industries Ltd.		21,474		75,663
Jindal Steel & Power Ltd.		5,706		78,415
JSW Steel Ltd.		2,142		49,532
Sesa Goa Ltd.		5,904		51,670
Steel Authority of India Ltd.		9,198		43,322
Sterlite Industries (India) Ltd.		4,410		74,704
Tata Chemicals Ltd.		3,438		21,476
Tata Steel Ltd.		7,866		98,033

				492,815


Media 0.1%
Zee Entertainment Enterprises Ltd.		3,942		20,948


Pharmaceuticals, Biotechnology & Life Sciences 0.4%
Cipla Ltd.		8,640		59,443
Dr. Reddys Laboratories Ltd.		1,296		31,994
Lupin Ltd.		1,044		34,011
Piramal Healthcare Ltd.		2,880		24,799
Sun Pharmaceutical Industries Ltd.		918		30,683

				180,930


Real Estate 0.3%
DLF Ltd.		7,488		47,343
Housing Development & Infrastructure Ltd. *		3,996		25,685
Unitech Ltd.		25,740		40,057

				113,085


Software & Services 1.5%
HCL Technologies Ltd.		3,528		27,999
Infosys Technologies Ltd.		7,938		447,648
Mphasis Ltd.		1,836		26,478
Tata Consultancy Services Ltd.		4,392		72,417
Wipro Ltd.		4,338		63,355

				637,897


Telecommunication Services 0.5%
Bharti Airtel Ltd.		21,888		132,643
Idea Cellular Ltd. *		26,694		35,376
Reliance Communications Ltd.		13,788		46,832

				214,851


Utilities 0.7%
Adani Power Ltd. *		7,416		16,568
GAIL India Ltd.		5,976		51,717
GMR Infrastructure Ltd. *		16,812		19,837
National Hydroelectric Power Corp Ltd. *		24,678		17,075
NTPC Ltd.		8,514		37,487
Power Grid Corp. of India Ltd.		9,288		21,666
Reliance Infrastructure Ltd.		1,908		41,653
Reliance Natural Resources Ltd. *		20,790		27,394
Reliance Power Ltd. *		8,604		25,753
Tata Power Co., Ltd.		1,746		45,974

				305,124

				4,670,560

Indonesia 2.1%


Automobiles & Components 0.4%
PT Astra International Tbk		45,000		174,746


Banks 0.4%
PT Bank Central Asia Tbk		171,000		89,301
PT Bank Mandiri Tbk		63,000		30,201
PT Bank Rakyat Indonesia		90,000		68,934

				188,436


Capital Goods 0.2%
PT United Tractors Tbk		36,000		66,138


Energy 0.2%
PT Bumi Resources Tbk		270,000		65,078
PT Tambang Batubara Bukit Asam Tbk		18,000		30,080

				95,158


Food, Beverage & Tobacco 0.2%
PT Astra Agro Lestari Tbk		9,000		23,332
PT Gudang Garam Tbk		9,000		25,115
PT Indofood Sukses Makmur Tbk		63,000		25,645

				74,092


Household & Personal Products 0.1%
PT Unilever Indonesia Tbk		18,000		22,175


Materials 0.2%
PT Indocement Tunggal Prakarsa Tbk		18,000		26,417

See financial notes 51

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
PT International Nickel Indonesia Tbk		45,000		18,197
PT Semen Gresik (Persero) Tbk		36,000		29,309

				73,923


Telecommunication Services 0.3%
PT Telekomunikasi Indonesia Tbk		144,000		128,034


Utilities 0.1%
PT Perusahaan Gas Negara		126,000		48,929

				871,631

Malaysia 4.1%


Automobiles & Components 0.1%
UMW Holdings Berhad		14,400		26,512


Banks 1.4%
Alliance Financial Group Berhad		27,000		22,041
CIMB Group Holdings Berhad		50,400		192,691
Hong Leong Bank Berhad		10,800		26,639
Malayan Banking Berhad		75,600		154,730
Public Bank Berhad		741		2,415
Public Bank Berhad - Foreign Market		50,400		164,571
RHB Capital Berhad		10,800		16,745

				579,832


Capital Goods 0.5%
Gamuda Berhad		36,000		29,282
IJM Corp. Berhad		21,600		28,098
Sime Darby Berhad		61,200		151,855

				209,235


Consumer Services 0.3%
Berjaya Sports Toto Berhad		23,400		29,340
Genting Berhad		39,600		73,374
Genting Malaysia Berhad		50,400		40,255

				142,969


Diversified Financials 0.1%
AMMB Holdings Berhad		36,000		51,799


Food, Beverage & Tobacco 0.5%
British American Tobacco Malaysia Berhad		1,800		22,189
IOI Corp. Berhad		68,400		107,857
Kuala Lumpur Kepong Berhad		9,000		44,240
PPB Group Berhad		9,000		42,813

				217,099


Real Estate 0.1%
SP Setia Berhad		19,800		24,303


Telecommunication Services 0.5%
Axiata Group Berhad *		91,800		100,547
Digi.com Berhad		5,400		35,709
Maxis Berhad		36,000		58,353
Telekom Malaysia Berhad		18,000		17,231

				211,840


Transportation 0.2%
MISC Berhad		25,760		58,623
PLUS Expressways Berhad		36,000		36,470

				95,093


Utilities 0.4%
Petronas Gas Berhad		10,800		30,604
Tanjong plc		3,600		18,626
Tenaga Nasional Berhad		16,200		37,866
YTL Corp. Berhad		18,000		38,162
YTL Power International Berhad		43,200		27,400

				152,658

				1,711,340

Mexico 5.5%


Banks 0.4%
Grupo Financiero Banorte S.A.B. de C.V., O Shares		28,800		107,906
Grupo Financiero Inbursa S.A.B. de C.V., O Shares		14,400		49,940

				157,846


Capital Goods 0.1%
Alfa S.A.B., A Shares		5,400		36,356
Grupo Carso S.A.B. de C.V., Series A1		9,000		32,058

				68,414


Consumer Durables & Apparel 0.0%
Urbi Desarrollos Urbanos S.A.B. de C.V. *		7,200		15,895


Food & Staples Retailing 0.5%
Wal-Mart de Mexico S.A.B. de C.V., Series V		45,000		223,525


Food, Beverage & Tobacco 0.5%
Fomento Economico Mexicano S.A.B. de C.V.		30,600		131,491
Grupo Bimbo S.A.B. de C.V., Series A		5,400		39,416
Grupo Modelo S.A.B. de C.V., Series C *		9,000		50,095

				221,002


Household & Personal Products 0.1%
Kimberly-Clark de Mexico S.A.B. de C.V., A Shares		5,400		28,700


Materials 1.2%
Cemex S.A.B. de C.V., Series CPO *		135,000		129,676
Grupo Mexico S.A.B. de C.V., Series B		120,600		287,014
Industrias Penoles S.A.B. de C.V.		2,250		45,062
Mexichem S.A.B. de C.V.		12,600		29,385

				491,137


Media 0.3%
Grupo Televisa S.A., Series CPO		34,200		126,506


Retailing 0.1%
Grupo Elektra S.A.B. de C.V.		990		52,221


Telecommunication Services 2.2%
America Movil S.A.B. de C.V., Series L		275,400		613,378
Carso Global Telecom S.A.B. de C.V., A1 Shares *		14,400		64,539
Telefonos de Mexico S.A.B. de C.V.		133,200		104,589
Telmex Internacional S.A.B. de C.V., L Shares		131,400		119,840

				902,346


Transportation 0.1%
Grupo Aeroportuario del Pacifico S.A.B. de C.V., B Shares		7,200		24,575

				2,312,167

52 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Morocco 0.3%


Telecommunication Services 0.3%
Maroc Telecom		6,156		110,894

Pakistan 0.1%


Energy 0.1%
Oil & Gas Development Co., Ltd. GDR - Reg’d		2,016		27,619

Peru 0.4%


Banks 0.1%
Credicorp Ltd.		738		57,638


Materials 0.3%
Companhia de Minas Buenaventura S.A. ADR		3,600		120,996

				178,634

Philippines 0.4%


Banks 0.1%
Bank of the Philippine Islands		28,800		29,346


Capital Goods 0.1%
SM Investments Corp.		3,960		31,122


Real Estate 0.0%
Ayala Land, Inc.		108,000		26,342


Telecommunication Services 0.1%
Philippine Long Distance Telephone Co.		720		40,585


Utilities 0.1%
Manila Electric Co.		7,020		27,395

				154,790

Poland 1.2%


Banks 0.6%
Bank Handlowy w Warszawie S.A. *		774		19,568
Bank Pekao S.A. *		1,440		78,497
Bank Zachodni WBK S.A. *		342		20,728
BRE Bank S.A. *		126		10,089
Getin Holding S.A. *		7,038		22,010
Powszechna Kasa Oszczednosci Bank Polski S.A.		8,532		108,620

				259,512


Energy 0.2%
Polski Koncern Naftowy Orlen S.A. *		4,590		52,045
Polskie Gornictwo Naftowe I Gazownictwo S.A.		20,286		24,941

				76,986


Materials 0.2%
KGHM Polska Miedz S.A.		2,052		68,508


Telecommunication Services 0.1%
Telekomunikacja Polska S.A.		9,576		51,338


Utilities 0.1%
Polska Grupa Energetyczna S.A. *		6,498		49,284

				505,628

Russia 6.9%


Banks 0.9%
Sberbank GDR - Reg’d		1,242		337,296
VTB Bank OJSC GDR - Reg’d		12,762		61,513

				398,809


Energy 4.3%
Gazprom ADR		33,102		736,188
Gazprom Neft JSC ADR		1,242		28,554
LUKOIL ADR		8,964		470,610
Rosneft Oil Co. GDR		30,186		233,036
Surgutneftegaz ADR		25,722		210,149
Tatneft ADR		3,798		115,611

				1,794,148


Materials 1.0%
Magnitogorsk Iron & Steel Works GDR - Reg’d		2,070		27,303
Mining & Metallurgical Co., Norilsk Nickel ADR *		10,980		165,688
Novolipetsk Steel GDR - Reg’d *		1,080		33,372
Polymetal GDR - Reg’d *		1,962		18,777
Polyus Gold Co. ADR		2,106		57,199
Severstal GDR - Reg’d		3,438		41,600
Uralkali GDR - Reg’d *		2,682		56,188

				400,127


Telecommunication Services 0.7%
Mobile TeleSystems ADR		3,600		188,460
Rostelecom ADR		1,800		50,580
Sistema JSFC GDR - Reg’d *		2,376		60,588

				299,628

				2,892,712

South Africa 9.2%


Banks 1.1%
ABSA Group Ltd.		5,022		87,014
Nedbank Group Ltd.		3,510		54,955
Standard Bank Group Ltd.		21,222		297,543

				439,512


Capital Goods 0.4%
Aveng Ltd.		6,102		29,776
Barloworld Ltd.		4,086		21,538
Bidvest Group Ltd.		4,752		81,840
Murray & Roberts Holdings Ltd.		5,076		25,564
Reunert Ltd.		3,096		22,293

				181,011


Consumer Durables & Apparel 0.1%
Steinhoff International Holdings Ltd. *		21,798		54,378


Consumer Services 0.1%
Sun International Ltd. *		1,890		22,686


Diversified Financials 0.9%
African Bank Investments Ltd.		12,060		48,731
FirstRand Ltd.		58,392		138,580
Investec Ltd.		4,320		30,690
JSE Ltd.		1,908		15,484
Remgro Ltd.		7,200		84,546
RMB Holdings Ltd.		13,104		50,248

				368,279

See financial notes 53

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Energy 0.7%
Sasol Ltd.		8,388		308,565


Food & Staples Retailing 0.4%
Massmart Holdings Ltd.		2,844		34,030
Pick n Pay Stores Ltd.		3,816		20,114
Shoprite Holdings Ltd.		7,398		72,296
The Spar Group Ltd.		3,204		30,516

				156,956


Food, Beverage & Tobacco 0.2%
AVI Ltd.		7,002		19,961
Illovo Sugar Ltd.		3,690		15,310
Tiger Brands Ltd.		2,106		48,360
Tongaat Hulett Ltd.		1,638		20,978

				104,609


Health Care Equipment & Services 0.1%
Netcare Ltd.		19,998		33,502


Insurance 0.4%
Discovery Holdings Ltd.		5,796		25,416
Metropolitan Holdings Ltd.		12,024		21,947
Sanlam Ltd.		30,834		98,281
Santam Ltd.		1,170		15,873

				161,517


Materials 2.4%
AECI Ltd.		2,196		17,162
African Rainbow Minerals Ltd.		1,296		31,113
Anglo Platinum Ltd. *		1,296		120,816
AngloGold Ashanti Ltd.		4,932		178,239
ArcelorMittal South Africa Ltd.		3,132		47,676
Exxaro Resources Ltd.		1,206		18,095
Gold Fields Ltd.		9,810		113,722
Harmony Gold Mining Co., Ltd.		6,210		55,946
Impala Platinum Holdings Ltd.		8,676		212,641
Kumba Iron Ore Ltd.		1,296		62,057
Mondi Ltd.		2,772		15,913
Mvelaphanda Resources Ltd. *		3,024		18,741
Nampak Ltd.		12,096		25,882
Northam Platinum Ltd.		2,988		17,364
Pretoria Portland Cement Co., Ltd.		8,478		35,950
Sappi Ltd. *		8,316		32,018

				1,003,335


Media 0.5%
Naspers Ltd., N Shares		5,418		203,586


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Adcock Ingram Holdings Ltd.		2,826		20,095
Aspen Pharmacare Holdings Ltd. *		6,120		56,692

				76,787


Real Estate 0.2%
Fountainhead Property Trust		24,642		21,155
Growthpoint Properties Ltd.		24,912		47,292

				68,447


Retailing 0.4%
Foschini Ltd.		3,798		29,980
Imperial Holdings Ltd.		3,114		38,090
JD Group Ltd.		2,844		15,881
Mr. Price Group Ltd.		4,914		24,716
Truworths International Ltd.		6,570		42,380
Woolworths Holdings Ltd.		12,438		33,446

				184,493


Telecommunication Services 1.1%
MTN Group Ltd.		24,804		362,133
Telkom South Africa Ltd.		6,174		27,026
Vodacom Group (Pty) Ltd.		7,506		52,638

				441,797


Transportation 0.0%
Grindrod Ltd.		6,714		12,877

				3,822,337

Taiwan 11.5%


Automobiles & Components 0.1%
Cheng Shin Rubber Industry Co., Ltd.		18,000		34,796
Yulon Motor Co., Ltd.		18,000		17,174

				51,970


Banks 1.0%
Chang Hwa Commercial Bank		72,000		31,766
China Development Financial Holding Corp. *		180,000		48,995
Chinatrust Financial Holding Co., Ltd.		144,000		78,123
E.Sun Financial Holding Co., Ltd. *		54,000		20,036
First Financial Holding Co., Ltd.		90,000		48,406
Hua Nan Financial Holdings Co., Ltd.		72,000		44,898
Mega Financial Holding Co., Ltd.		126,000		69,733
SinoPac Financial Holdings Co., Ltd. *		108,000		34,852
Taishin Financial Holding Co., Ltd. *		458		154
Taiwan Cooperative Bank		72,000		41,082

				418,045


Capital Goods 0.3%
Far Eastern New Century Corp.		54,000		58,424
Taiwan Glass Industrial Corp.		18,000		16,107
Teco Electric & Machinery Co., Ltd.		36,000		14,367
Walsin Lihwa Corp. *		72,000		23,572

				112,470


Consumer Durables & Apparel 0.1%
Pou Chen Corp.		54,000		39,819
Tatung Co., Ltd. *		90,000		18,801

				58,620


Diversified Financials 0.5%
Capital Securities Corp. *		36,000		17,398
Fubon Financial Holding Co., Ltd. *		90,000		99,618
KGI Securities Co., Ltd.		36,000		15,546
Polaris Securities Co., Ltd. *		36,000		17,622
Yuanta Financial Holding Co., Ltd.		90,000		51,072

				201,256


Energy 0.1%
Formosa Petrochemical Corp.		18,000		45,572


Food, Beverage & Tobacco 0.1%
Uni-President Enterprises Corp.		54,000		59,939


Insurance 0.4%
Cathay Financial Holding Co., Ltd. *		72,000		116,062
Shin Kong Financial Holding Co., Ltd. *		90,000		31,990

				148,052

54 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Materials 1.8%
Asia Cement Corp.		36,000		33,000
China Steel Corp.		144,000		144,573
Formosa Chemicals & Fibre Corp.		54,000		122,067
Formosa Plastics Corp.		90,000		194,185
Nan Ya Plastics Corp.		90,000		178,190
Taiwan Cement Corp.		18,000		16,612
Taiwan Fertilizer Co., Ltd.		18,000		54,439

				743,066


Semiconductors & Semiconductor Equipment 2.8%
Advanced Semiconductor Engineering, Inc.		54,000		42,934
Inotera Memories, Inc. *		36,000		24,750
Macronix International Co., Ltd.		54,000		28,960
MediaTek, Inc.		18,000		283,420
Siliconware Precision Industries Co.		54,000		62,717
Taiwan Semiconductor Manufacturing Co., Ltd.		360,000		660,005
United Microelectronics Corp. *		144,000		69,368

				1,172,154


Technology Hardware & Equipment 3.9%
Acer, Inc.		36,000		101,021
Asustek Computer, Inc.		54,000		95,297
AU Optronics Corp.		126,000		129,644
Chi Mei Optoelectronics Corp. *		90,000		61,735
Chicony Electronics Co., Ltd.		18,000		43,832
Compal Electronics, Inc.		54,000		77,450
Delta Electronics, Inc.		18,000		52,475
Foxconn Technology Co., Ltd.		18,000		63,699
HannStar Display Corp. *		108,000		21,585
Hon Hai Precision Industry Co., Ltd.		108,000		427,656
HTC Corp.		18,000		181,838
InnoLux Display Corp.		54,000		76,776
Inventec Co., Ltd.		54,000		29,549
Lite-On Technology Corp.		36,000		46,357
Quanta Computer, Inc.		36,000		73,521
Synnex Technology International Corp.		18,000		37,939
Unimicron Technology Corp.		18,000		20,120
Wistron Corp.		36,000		61,735

				1,602,229


Telecommunication Services 0.4%
Chunghwa Telecom Co., Ltd.		32,727		61,020
Far EasTone Telecommunications Co., Ltd.		36,000		42,878
Taiwan Mobile Co., Ltd.		36,000		67,460

				171,358

				4,784,731

Thailand 1.6%


Banks 0.6%
Bangkok Bank Public Co., Ltd. NVDR		18,000		63,421
Bank of Ayudhya Public Co., Ltd. NVDR		81,000		50,219
Kasikornbank Public Co., Ltd. NVDR		21,600		56,507
Krung Thai Bank Public Co., Ltd. NVDR		82,800		25,042
Siam Commercial Bank Public Co., Ltd. NVDR		27,000		68,592

				263,781


Energy 0.6%
Banpu Public Co., Ltd. NVDR		1,800		29,941
IRPC PCL NVDR		178,200		23,713
PTT Aromatics & Refining PCL NVDR		37,800		30,580
PTT Exploration & Production Public Co., Ltd. NVDR		19,800		80,841
PTT PCL NVDR		12,600		88,408

				253,483


Food & Staples Retailing 0.1%
CP ALL PCL NVDR		41,400		29,549


Food, Beverage & Tobacco 0.1%
Charoen Pokphand Foods Public Co., Ltd. NVDR		70,200		26,114


Materials 0.1%
The Siam Cement Public Co., Ltd. NVDR		5,400		36,419


Telecommunication Services 0.1%
Advanced Info Service Public Co., Ltd. NVDR		16,200		43,115

				652,461

Turkey 1.2%


Banks 0.6%
Akbank T.A.S.		12,474		63,124
Turkiye Garanti Bankasi A/S		17,298		63,969
Turkiye Halk Bankasi A/S		5,976		37,802
Turkiye Is Bankasi *		6,001		15,885
Turkiye Is Bankasi, C Shares		13,014		36,137
Yapi ve Kredi Bankasi A/S *		12,996		27,993

				244,910


Capital Goods 0.2%
Dogan Sirketler Grubu Holdings A/S		25,560		17,412
Enka Insaat ve Sanayi A/S		6,642		26,071
Koc Holding A/S *		14,598		43,566

				87,049


Diversified Financials 0.0%
Haci Omer Sabanci Holding A/S		7,020		26,644


Energy 0.1%
Tupras-Turkiye Petrol Rafinerileri A/S		1,692		30,737


Food & Staples Retailing 0.1%
BIM Birlesik Magazalar A/S		648		28,798


Food, Beverage & Tobacco 0.1%
Anadolu Efes Biracilik ve Malt Sanayii A/S		3,384		34,250


Materials 0.1%
Eregli Demir ve Celik Fabrikalari TAS (Erdemir) *		13,500		36,961

See financial notes 55

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Telecommunication Services 0.0%
Turkcell Iletisim Hizmet A/S		3,078		18,072

				507,421

Total Common Stock (Cost $36,977,246)				35,741,108




Other Investment Company 3.3% of net assets


State Street Institutional Liquid Reserves Fund		1,375,621		1,375,621

Total Other Investment Company (Cost $1,375,621)				1,375,621




Preferred Stock 10.8% of net assets

Brazil 10.8%


Banks 3.0%
Banco Bradesco S.A.		23,440		403,624
Itau Unibanco Holding S.A.		30,600		617,413
Itausa - Investimentos Itau S.A.		37,800		241,552

				1,262,589


Energy 2.5%
Petroleo Brasileiro S.A.		50,400		964,259
Ultrapar Participacoes S.A.		1,800		80,199

				1,044,458


Food & Staples Retailing 0.2%
Companhia Brasileira de Distribuicao Grupo Pao de Acucar, A Shares		1,800		61,094


Food, Beverage & Tobacco 0.8%
Companhia de Bebidas das Americas		3,600		346,308


Materials 3.0%
Bradespar S.A.		3,600		78,468
Braskem S.A., A Shares *		3,600		25,433
Fertilizantes Fosfatados S.A. *		1,800		17,811
Gerdau S.A.		10,800		157,910
Klabin S.A.		9,000		23,632
Metalurgica Gerdau S.A.		3,600		65,373
Suzano Papel e Celulose S.A. *		3,600		37,015
Usinas Siderurgicas de Minas Gerais S.A., A Shares		3,600		102,129
Vale S.A., A Shares		30,600		751,891

				1,259,662


Media 0.1%
Net Servicos de Comunicacao S.A. *		3,600		44,219


Retailing 0.1%
Lojas Americanas S.A.		5,400		38,806


Telecommunication Services 0.5%
Brasil Telecom S.A. *		3,600		24,716
Tele Norte Leste Participacoes S.A.		3,600		62,289
Tim Participacoes S.A.		21,600		61,373
Vivo Participacoes S.A.		1,800		48,856

				197,234


Transportation 0.1%
Tam S.A. *		1,800		33,323


Utilities 0.5%
AES Tiete S.A.		1,800		18,906
Companhia Energetica de Minas Gerais		5,400		88,687
Companhia Energetica de Sao Paulo, B Shares *		1,800		23,134
Companhia Paranaense de Energia - Copel, B Shares		1,800		36,617
Eletropaulo Metropolitana S.A., B Shares		1,800		37,333

				204,677

				4,492,370

Total Preferred Stock (Cost $4,530,341)				4,492,370



End of Investments

At 2/28/10, the tax basis cost of the fund’s investments was $42,883,208 and the unrealized appreciation and depreciation were $413,037 and ($1,687,146), respectively, with a net unrealized depreciation of ($1,274,109).


*		Non-income producing security.
(a)		Fair valued by management in accordance with procedures approved by the Board of Trustees.


ADR —		American Depositary Receipt
GDR —		Global Depositary Receipt
NVDR —		Non-Voting Depositary Receipt
Reg’d —		Registered

56 See financial notes

Schwab Emerging Markets Equity ETF

Statement of

Assets and Liabilities

As of February 28, 2010 (unaudited)




Assets
Investments, at value (cost $42,883,208)		$41,609,099
Foreign currency, at value (cost $3,136)		3,175
Receivables:
Dividends		26,473
Interest	+	173


Total assets		41,638,920


Liabilities
Payables:
Investment adviser and administrator fees		1,213
Foreign capital gain tax	+	1,772


Total liabilities		2,985


Net Assets
Total assets		41,638,920
Total liabilities	—	2,985


Net assets		$41,635,935
Net Assets by Source
Capital received from investors		43,157,699
Net investment income not yet distributed		21,464
Net realized capital losses		(267,797	)
Net unrealized capital losses		(1,275,431	)

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$41,635,935

1,800,001

$23.13

See financial notes 57

Schwab Emerging Markets Equity ETF

Statement of

Operations

For January 13, 2010* through February 28, 2010 (unaudited)




Investment Income
Dividends (net of foreign withholding tax of $4,903)		$34,368
Interest	+	296


Total investment income		34,664


Expenses
Investment adviser and administrator fees		13,200


Total expenses		13,200


Net investment income		21,464


Realized and Unrealized Gains (Losses)
Net realized losses on investments		(45,758	)
Net realized losses on foreign currency transactions	+	(222,039	)


Net realized losses		(267,797	)
Net unrealized losses on investments		(1,275,881	)
Net unrealized gains on foreign currency translations	+	450


Net unrealized losses	+	(1,275,431	)


Net realized and unrealized losses		(1,543,228	)
Net decrease in net assets resulting from operations		$(1,521,764	)


*	Commencement of operations.

58 See financial notes

Schwab Emerging Markets Equity ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on January 13, 2010, it has no prior report period.

Figures for the current period are unaudited.




Operations


		*1/13/10-02/28/10**
Net investment income		$21,464
Net realized losses		(267,797)
Net unrealized losses	+	(1,275,431)


Net decrease in net assets resulting from operations		$(1,521,764)




Transactions in Fund Shares


		*1/13/10-02/28/10**
		SHARES		VALUE
Shares Sold			1,800,001		$43,157,699
Shares Redeemed	+		—		—


Net transactions in fund shares			1,800,001		$43,157,699




Shares Outstanding and Net Assets


		*1/13/10-02/28/10**
		SHARES		NET ASSETS
Beginning of period			—		$—
Total increase	+		1,800,001		41,635,935


End of period			1,800,001		$41,635,935



Net investment income not yet distributed					$21,464


*	Commencement of operations.

See financial notes 59

Schwab International ETFs

Financial Notes, unaudited

1. Business Structure of the Funds



Schwab Strategic Trust (organized January 27, 2009) Schwab International Equity ETF Schwab International Small-Cap Equity ETF Schwab Emerging Markets Equity ETF		Schwab U.S. Broad Market ETF Schwab U.S. Large-Cap ETF Schwab U.S. Large-Cap Growth ETF Schwab U.S. Large-Cap Value ETF Schwab U.S. Small-Cap ETF

Schwab International Equity ETF commenced operations on October 30, 2009. Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF commenced operations on January 13, 2010.

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the funds used in the preparation of their financial statements. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”)

(a) Security Valuation:

The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:


	•	Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, halfway between the most recent bid and asked quotes. Securities that are primarily traded on foreign exchanges are valued at the closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the valuation date exchange rate.

	•	Securities for which no quoted value is available: The Board of Trustees has adopted procedures to fair value each fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when a security is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price when a security’s primary trading market is closed during regular market hours. Each fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Board of Trustees regularly reviews fair value determinations made by the funds pursuant to the procedures.

	•	Forwards contracts: valued based on that day’s exchange rates.

	•	Short-term securities (60 days or less to maturity): valued at amortized cost, which approximates market value.

	•	Underlying funds: valued at their respective net asset values as determined by those funds in accordance with the 1940 Act for a given day.

Schwab International ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

or liabilities (level 1 measurement) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (level 3 measurements).

The guidance establishes three levels of the fair value hierarchy as follows:


	•	Level 1 — quoted prices in active markets for identical securities. — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities. The funds do not adjust the quoted price for such investments, even in situations where the funds hold a large position and a sale could reasonably impact the quoted price.

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

	•	Level 3 — significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments). — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the funds’ results of operations.

Schwab International Equity ETF


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$142,314,095		$—		$—		$142,314,095
Australia
Health Care Equipment & Services		76,752		—		17,404		94,156
Real Estate		840,780		—		60,287		901,067
Other Investment Company		470,220		—		—		470,220
Preferred Stock		254,398		—		—		254,398
Rights(a)		2,427		—		—		2,427

Total		$143,958,672		$—		$77,691		$144,036,363

Schwab International ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

Net

Balance

Net

Change in

Balance

as of

Accrued

Realized

Unrealized

Net

as of

October 30,

Discounts

Gain

Gains

Purchases

Transfers

February 28,

Investments in Securities

2009

(Premiums)

(Losses)

(Sales)

in/out

2010

Common Stock

Australia

$—

($1,738

)

$79,429

$—

$77,691

Total

$—

($1,738

)

$79,429

$—

$77,691

All net realized and change in unrealized gains (losses) in the tables above are reflected on the accompanying statements of operations. Changes in net unrealized gains (losses) for Level 3 investments held by the funds at February 28, 2010 approximate the changes in unrealized gains (losses) in the tables above.

Schwab International Small-Cap Equity ETF


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$25,334,142		$—		$—		$25,334,142
Other Investment Companies(a)		55,401		—		—		55,401
Preferred Stock(a)		167,458		—		—		167,458

Total		$25,557,001		$—		$—		$25,557,001

Schwab Emerging Markets Equity ETF


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$35,524,077		$—		$—		$35,524,077
China
Transportation		185,638		—		31,393		217,031
Other Investment Company		1,375,621		—		—		1,375,621
Preferred Stock(a)		4,492,370		—		—		4,492,370

Total		$41,577,706		$—		$31,393		$41,609,099

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

Balance

Net

Balance

as of

Accrued

Realized

Change in

Net

as of

January 13,

Discounts

Gain

Unrealized Gains

Purchases

Transfers

February 28,

Investments in Securities

2010

(Premiums)

(Losses)

(Sales)

in/out

2010

Common Stock

China

$—

$1,327

$30,066

$—

$31,393

Total

$—

$1,327

$30,066

$—

$31,393


*		The fund had no Other Financial Instruments.
(a)		As categorized in Portfolio Holdings

Schwab International ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(b) Portfolio Investments:

Derivatives: The funds may invest in forward currency contracts in connection with the purchase and sale of portfolio securities to minimize the uncertainty of changes in future foreign currency exchange rates. “Forwards”, as they are known, are contracts to buy and sell a currency at a set price on a future date. Forwards have similar risks as futures except that they are agreements directly between two parties. Also, forwards are not publicly traded.

(c) Security Transactions:

Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. The funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Gains realized by the funds on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. The funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.

When a fund closes out a forwards position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly. A fund records the daily change in market value of futures and also the change in the amount of margin deposit required (“due to / from broker”).

(d) Investment Income:

(e) Expenses:

(f) Distributions to Shareholders:

The funds make distributions from net investment income and net realized capital gains, if any, once a year.

(g) Accounting Estimates:

(h) Federal Income Taxes:

Schwab International ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(i) Foreign Taxes:

The funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, capital gains on investments or currency repatriation. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign markets in which the funds invest. These foreign taxes, if any, are paid by the funds and are disclosed in the Statement of Operations. Foreign taxes payable as of February 28, 2010, if any, are reflected in the funds’ Statement of Assets and Liabilities.

(j) Indemnification:

3. Risk factors:

Investing in the funds may involve certain risks, as described in the funds’ prospectus, including, but not limited to, those described below:

The funds’ investments in securities of foreign issuers involve certain risks that are greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions, or changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges). In certain countries, legal remedies available to investors may be more limited than those available with respect to investments in the United States. The securities of some foreign issuers may be less liquid and, at times, more volatile than securities of comparable U.S. companies. The funds may also experience more rapid or extreme changes in value as compared to a fund that invests solely in securities of U.S. companies because the securities’ markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries. There also is the risk that the cost of buying, selling, and holding foreign securities, including brokerage, tax, and custody costs, may be higher than those involved in domestic transactions.

Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting and reporting requirements, unreliable securities valuation and greater risk associated with the custody of securities. It is sometimes difficult to obtain and enforce court judgments in such countries and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers

Schwab International ETFs

Financial Notes, unaudited (continued)

3. Risk factors (continued):

(including governments) in emerging market countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with the funds’ investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar.

Foreign securities also include ADRs, which are U.S. dollar-denominated receipts issued by U.S. banks or trust companies that represent shares of foreign-based corporations, and GDRs, which are similar to ADRs, but are shares of foreign-based corporations generally issued by international banks in one or more markets around the world. In addition, foreign securities include EDRs, similar to GDRs, but which are generally issued by European banks that trade on exchanges outside of a bank’s home country. Investment in ADRs, GDRs and EDRs may be less liquid than the underlying shares in their primary trading market and GDRs, many of which are issued by companies in emerging markets, may be more volatile.

A particular investment may be difficult to purchase or sell. The funds may be unable to sell illiquid securities at an advantageous time or price.

An investment in a fund is not a bank deposit and it is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

Please refer to the funds’ prospectus for a complete description of the principal risks of investing in the funds.

4. Affiliates and Affiliated Transactions:

Schwab International ETFs

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):


		Schwab		Schwab
Schwab		International		Emerging
International Equity		Small-Cap		Markets
ETF		Equity ETF		Equity ETF

	0.15%		0.35%		0.35%

The investment adviser will pay the operating expenses of the funds, excluding interest expenses, taxes, any brokerage expenses and extraordinary or non-routine expenses.

Prior to December 14, 2009, the Trust had a Distribution and Shareholder Services (12b-1) Plan (the “Plan”) pursuant to which the fund was subject to an annual 12b-1 fee up to 0.25% of its average daily net assets. The Board had determined that no such fees would be charged prior to November 14, 2011. However, On December 14, 2009, the Board of Trustees of the Trust approved the termination of the Plan.

The funds may engage in certain transactions involving affiliates. For instance, a fund may own shares of The Charles Schwab Corporation if that company is included in its index.

Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions within the Schwab Funds including Schwab ETFs. All loans are for temporary or emergency purposes only. The interest rate charged on the loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. The interfund lending facility is subject to the oversight and periodic review of the Board of Trustees of the Schwab Funds, and separately by the Board of Trustees of the Schwab ETFs. There was no interfund borrowing or lending activity for the funds during the period.

5. Other Service Providers:

SEI Investments Distribution Co. (the “Distributor”) is the principal underwriter and distributor of shares of the funds.

6. Board of Trustees:

Schwab International ETFs

Financial Notes, unaudited (continued)

7. Purchases and Sales of Investment Securities:

For the period ended February 28, 2010, purchases and sales of securities (excluding in-kind transactions and short-term obligations) were as follows:


	Purchases of Securities		Sales/Maturities of Securities

Schwab International Equity ETF		$1,798,819		$1,771,342
Schwab International Small-Cap Equity ETF		665,808		161,585
Schwab Emerging Markets Equity ETF		22,191,530		190,871

8. In-Kind Transactions:

The in-kind transactions for the period ended February 28, 2010 were as follows:


	In-kind Purchases		In-kind Sales

Schwab International Equity ETF		$150,559,917		$—
Schwab International Small-Cap Equity ETF		25,618,995		—
Schwab Emerging Markets Equity ETF		19,552,657		—

For the period ended February 28, 2010, there were no in-kind redemptions. However, if the funds have such transactions, they will realize net capital gains or losses resulting from in-kind redemptions of large blocks of shares or multiples thereof (“Creation Units”). Because such gains or losses are not taxable to the funds and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to paid-in-capital at the end of the funds’ tax year. These reclassifications have no effect on net assets or net asset value per share. The net realized in-kind gains or losses will be disclosed in the Funds’ Statements of Operations.

9. Subsequent Events:

Management has determined there are no subsequent events or transactions that would have materially impacted the financial statements as presented.

Investment Advisory Agreement Approval

Initial Approval of Investment Advisory Agreement

The Board of Trustees (the “Board” or the “Trustees”, as appropriate) called and held a meeting on October 12, 2009, in part, for the purpose of considering whether to appoint Charles Schwab Investment Management, Inc. (“CSIM”) as investment adviser to the Schwab International Equity ETF, Schwab International Small-Cap Equity ETF, Schwab Emerging Markets Equity ETF Funds under the investment advisory agreement between Schwab Strategic Trust (the “Trust’) and CSIM (the “Agreement”). In preparation for the meeting, the Board requested and reviewed a variety of materials provided by CSIM with respect to the services to be provided to the funds under the Agreement. The Independent Trustees received advice from fund counsel to the Independent Trustees, including a memorandum regarding the responsibilities of Trustees for the approval of investment advisory agreements. In addition, the Independent Trustees met in executive session outside the presence of fund management and participated in question and answer sessions with representatives of CSIM.


1.	the nature, extent and quality of the services to be provided to the funds under the Agreement, including the resources of CSIM and its affiliates dedicated to the funds;

2.	CSIM’s investment performance in managing other funds having relevant investment objectives and strategies;

3.	each fund’s estimated expenses and how those expenses compared to those of certain other comparable exchange-traded funds;

4.	the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (“Schwab”), with respect to management of other funds, including both direct and indirect benefits accruing to CSIM and its affiliates; and

5.	the extent to which economies of scale would be realized as the funds grow and whether fee levels in the Agreement relating to the funds reflect those economies of scale for the benefit of fund investors.

Profitability. With regard to profitability, the trustees considered the compensation flowing to CSIM and its affiliates directly or indirectly. The trustees also considered any other benefits derived by CSIM from its relationship with the funds, such as whether, by virtue of its management of the funds, CSIM obtains investment information or other research resources that aid it in providing advisory services to other clients. The trustees considered whether the varied levels of compensation and profitability under the Agreement and other service agreements were reasonable and justified in light of the quality of all services rendered to the funds by CSIM and its affiliates. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the expected profitability of CSIM, albeit uncertain, is reasonable and supported approval of the Agreement with respect to the funds.

Trustees and Officers

Independent Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee	Other Directorships

Robert W. Burns⁴1959 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Retired. From 1987 – 2008: Managing Director, PIMCO (investment adviser); From 1994 – 2008: President and Trustee, PIMCO Funds (investments), and from 2007 – 2008: Chairman of PIMCO Strategic Global Government Fund, Inc (investments).	8	Independent Director and Chairman of Corporate Governance/Nominating Committee, PS Business Parks, Inc.


Mark A. Goldfarb⁴1952 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Founder and Managing Director, SS&G Financial Services (financial services firm).	8	None


Charles A. Ruffel⁴1956 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Advisor, Asset International, Inc. (provider of financial services information). Chief Executive Officer and Founder, Asset International, Inc. Until 2008, Managing Partner and Co-Founder, Kudu Advisors, LLC.	8	None

Interested Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served )	During the Past Five Years	the Trustee	Other Directorships

Walter W. Bettinger II²1960 Trustee (Trustee of Schwab Strategic Trust since 2009.)	As of October 2008, President and Chief Executive Officer, Charles Schwab & Co., Inc., principal underwriter to the funds, and The Charles Schwab Corporation. Since May 2008, Director, Charles Schwab & Co., Inc. and Schwab Holdings, Inc. Since 2006, Director, Charles Schwab Bank. Until October 2008, President and Chief Operating Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation. From 2004 through 2007, Executive Vice President and President, Schwab Investor Services. From 2004 through 2005, Executive Vice President and Chief Operating Officer, Individual Investor Enterprise, and from 2002 through 2004, Executive Vice President, Corporate Services.	85	None

Officers of the Trust


Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served³)		Principal Occupations During the Past Five Years

Randall W. Merk 1954 President and Chief Executive Officer (Officer of Schwab Strategic Trust since 2009.)		Executive Vice President and President, Investment Management Services, Charles Schwab & Co., Inc.; Executive Vice President, Charles Schwab & Co., Inc. (2002 – present); President and Chief Executive Officer, Charles Schwab Investment Management, Inc. (2007 – present); Director, Charles Schwab Asset Management (Ireland) Limited and Charles Schwab Worldwide Funds PLC.


George Pereira 1964 Treasurer and Principal Financial Officer (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President and Chief Financial Officer, Charles Schwab Investment Management, Inc.; Chief Financial Officer, Laudus Trust and Laudus Institutional Trust; Director, Charles Schwab Worldwide Fund, PLC and Charles Schwab Asset Management (Ireland) Limited. Through June 2007, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust; Chief Financial Officer, Mutual Fund Division, UST Advisers, Inc. From December 1999 to November 2004, Sr. Vice President, Financial Reporting, Charles Schwab & Co., Inc.


Jeffrey Mortimer 1963 Senior Vice President and Chief Investment Officer (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President and Chief Investment Officer — Equities & Fixed Income, Charles Schwab Investment Management, Inc.; President, Chief Executive Officer and Chief Investment Officer, Laudus Trust and Laudus Institutional Trust.


Koji E. Felton 1961 Secretary and Chief Legal Officer (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President, Chief Counsel and Corporate Secretary, Charles Schwab Investment Management, Inc.; Senior Vice President and Deputy General Counsel, Charles Schwab & Co., Inc. Until 2006, Chief Legal Officer, Laudus Trust and Laudus Institutional Trust. Through June 2007, Chief Legal Officer and Secretary, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust.


Catherine MacGregor 1964 Vice President (Officer of Schwab Strategic Trust since 2009.)		Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc., and Laudus Trust and Laudus Institutional Trust. Since 2006, Vice President, Chief Legal Officer and Clerk of Laudus Trust and Laudus Institutional Trust; Vice President, Schwab Funds.


Michael Haydel 1972 Vice President (Officer of Schwab Strategic Trust since 2009.)		Vice President, Asset Management Client Services, Charles Schwab & Co., Inc.; Vice President and AML Officer, Laudus Trust, Laudus Institutional Trust.


¹		Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The Trust’s retirement policy requires that independent trustees retire by December 31 of the year in which the Trustee turns 72 or the Trustee’s twentieth year of service as an independent trustee, whichever comes first.
²		Mr. Bettinger is an Interested Trustee because he is an employee of Schwab and/or the investment adviser. In addition to his employment with the investment adviser and Schwab, Mr. Bettinger also owns stock of The Charles Schwab Corporation.
³		The President, Treasurer and Secretary hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.
⁴		Member of the Audit and Compliance Committee and Nominating Committee.

Glossary

American Depositary Receipt (ADR) U.S. dollar-denominated receipts issued by U.S. banks or trust companies that represent shares of foreign-based corporations.