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

Operations

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

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)

Marie Chandoha
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, 2011

Item 1: Report(s) to Shareholders.

Semiannual report dated February 28, 2011 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. Mid-Cap ETF^tm

Schwab U.S. Small-Cap ETF^tm

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This wrapper is not part of the shareholder report.

Schwab U.S. ETFs

Semiannual Report

February 28, 2011

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. Mid-Cap ETF^tm

Schwab U.S. Small-Cap ETF^tm

This page is intentionally left blank.

In This Report



Performance at a Glance		2

From the President		3

Investment Environment		4

Fund Management		5

Schwab U.S. Broad Market ETF™		6

Schwab U.S. Large-Cap ETF™		8

Schwab U.S. Large-Cap Growth ETF™		10

Schwab U.S. Large-Cap Value ETF™		12

Schwab U.S. Mid-Cap ETF™		14

Schwab U.S. Small-Cap ETF™		16

Fund Expenses		18

Financial Statements		19

Financial Notes		97

Investment Advisory Agreement Approval		106

Trustees and Officers		108

Glossary		110

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 for the Report Period*



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

NAV Return¹		29.12%
Market Price Return¹		29.25%
Dow Jones U.S. Broad Stock Market Index^SM		29.32%
ETF Category: Morningstar Large Blend²		35.67%

Performance Details		pages 6-7



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

NAV Return¹		28.03%
Market Price Return¹		28.17%
Dow Jones U.S. Large-Cap Total Stock Market Index^SM		28.20%
ETF Category: Morningstar Large Blend²		35.67%

Performance Details		pages 8-9



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

NAV Return¹		31.83%
Market Price Return¹		31.82%
Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM		32.02%
ETF Category: Morningstar Large Growth²		37.15%

Performance Details		pages 10-11



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

NAV Return¹		24.68%
Market Price Return¹		24.72%
Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM		24.86%
ETF Category: Morningstar Large Value²		25.05%

Performance Details		pages 12-13



Schwab U.S. Mid-Cap ETF^tm**
(Ticker Symbol: SCHM)

NAV Return¹		4.61%
Market Price Return¹		4.61%
Dow Jones U.S. Mid-Cap Total Stock Market Index^SM		4.63%
ETF Category: Morningstar Mid-Cap Blend²		5.16%

Performance Details		pages 14-15



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

NAV Return¹		38.41%
Market Price Return¹		38.79%
Dow Jones U.S. Small-Cap Total Stock Market Index^SM		38.66%
ETF Category: Morningstar Small Blend²		57.66%

Performance Details		pages 16-17

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.

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 are service marks of Dow Jones Trademark Holdings, LLC, (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”), and sublicensed for use for certain purposes by CSIM, the fund’s investment adviser. Fees payable under the license are paid by CSIM. The Schwab U.S. ETFs, based on their respective Dow Jones Indexes, are not sponsored, endorsed, sold or promoted by Dow Jones or CME Indexes and neither makes any representation regarding the advisability of trading in such products.


*	The report period covers the six months beginning September 1, 2010 through February 28, 2011, except where noted.

**	Total returns are since inception date of 1/13/11. Inception represents the date that the shares began trading in the secondary market. These total returns may differ from those disclosed in the Financial Highlights, as the total returns in the Financial Highlights are calculated from the commencement of operations date which is the first day the NAV was determined.

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 Price 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.

²	The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.

2 Schwab U.S. ETFs

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.

Equity markets strengthened, boosted by strong corporate earnings and actions by the Federal Reserve to bolster economic growth through accommodative monetary policy.

Dear Shareholder,

It is a pleasure to write to you in connection with the accompanying semiannual report for the Schwab U.S. ETFs for the six-month period that ended February 28, 2011. This report includes the newly launched U.S. Mid-Cap ETF^tm, from its inception January 13 through February 28, 2011.

The U.S. economy continued to slowly rebound from the 2008 financial crisis. Equity markets strengthened, boosted by strong corporate earnings and actions by the Federal Reserve to bolster economic growth through accommodative monetary policy. U.S. stocks rose across all market capitalization sectors, with small-cap stocks leading the way.

The global economy was not without its hiccups, however. By the end of 2010, Europe’s weakest economies had received help from their stronger neighbor nations. Political upheaval in the Middle East and northern Africa roiled oil and other commodities markets. Inflation also began to concern many investors who viewed the Federal Reserve’s monetary policy as too stimulative.

All six of the Schwab U.S. ETFs generated investment returns that were consistent with their respective indexes. For details about each fund’s performance, please see the managers’ discussion and analysis in the following pages.

The Schwab U.S. ETFs present investors with a spectrum of investment vehicles in domestic stock markets, from large-cap to small-cap stocks. The U.S. Mid-Cap ETF, launched at the same time as the Schwab U.S. REIT ETF^tm, represents the latest addition to the firm’s line of proprietary ETFs and expands the offering to 13 equity and fixed income funds. Our newest ETFs are part of Schwab’s ongoing commitment to offering broad exposure to core market segments at a compelling value.

Thank you for investing in the Schwab U.S. ETFs. We encourage you to review your investment portfolio regularly to make sure it meets your current financial plan. For answers to questions you may have or to consult our website for more information, please visit www.schwabetfs.com. We are also happy to hear from you at 1-800-435-4000.

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.

Schwab U.S. ETFs 3

The Investment Environment

Under the umbrella of the Federal Reserve implementing its second phase of quantitative easing (QE2) in November 2010, which included buying an additional $600 billion in longer-term U.S. Treasuries, two themes prevailed during the six-month period under review. First, the Fed maintained its stance of keeping the federal funds rate between 0−0.25%, a range that has been in place since December 2008. Second, strong corporate earnings and balance sheets gave rise to merger and acquisition activity. As a consequence, U.S. and international equity markets benefited from the strong corporate earnings, and investors who had been willing to take on the additional risk associated with the equity markets were generally rewarded.

With this as a backdrop, U.S. and international stock markets reported strong returns. For example, the S&P 500 Index^® returned 27.73%, the MSCI EAFE^® Index returned 23.89%, and the MSCI Emerging Markets Index returned 15.03%.

In addition to the U.S. equity markets benefiting from strong corporate earnings, there was also some improvement seen in Gross Domestic Product (GDP) growth and in unemployment. GDP growth for the fourth quarter of 2010 was 3.1%, up slightly from the 2.6% reported for the third quarter of 2010, and the national unemployment rate was 8.9% for February 2011, compared to 9.6% reported for September 2010 (the beginning of the six-month reporting period).

Signs of strength in the global equity markets came from countries such as Russia, Sweden, Germany, and Canada, where all four reported returns of over 30%. However, economies in other countries continued to suffer under unresolved hardship. Ongoing turmoil in some of the euro-zone countries remained intact. Examples included Ireland’s banking industry continuing its struggle to manage heavy debt against high unemployment and some of the economies in southern Europe facing similar challenges.

The political uprisings in the Middle East, especially in Egypt and Libya, became the impetus for rising energy prices, as fears that routine transit routes would be disrupted arose. Consequently, Energy was one of the strongest performing sectors on a global level. Industrials and Information Technology also had good returns, while the Utilities Sector was one of the weaker, albeit still positive, performers.

Overall, the U.S. and global equity markets had strong returns that provided investors willing to take on the associated risks with the opportunity for capturing market returns.

Asset Class Performance Comparison % returns during the report period

This graph compares the performance of various asset classes during the report period. Final performance figures for the period are in the key below.



		27.73%		S&P 500^{^®} Index: measures U.S. large-cap stocks

		37.55%		Russell 2000^{^®} Index: measures U.S. small-cap stocks

		23.89%		MSCI EAFE^{^®} Index: measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East

		−0.83%		Barclays Capital U.S. Aggregate Bond Index: measures the U.S. bond market

		0.07%		Three-Month U.S. Treasury Bills (T-bills): measures short-term U.S. Treasury obligations

These figures 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. Remember that past performance is not an indication of future results.

Data source: Index provider websites and Charles Schwab Investment Management, Inc.

Nothing in this report represents a recommendation of a security by the investment adviser.

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

4 Schwab U.S. ETFs

Fund Management



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

		Ferian Juwono, CFA, a managing director and portfolio manager of the Adviser, has day-to-day responsibility for co-management of the funds. Prior to joining the firm in May 2010, he was a portfolio manager at a major asset management firm for three years. Before that position, he was a senior business analyst at a major financial firm for nearly two years. In addition, he was a senior financial analyst at a regional banking firm for four years.

Schwab U.S. ETFs 5

Schwab U.S. Broad Market ETF™

The Schwab U.S. Broad Market ETF (the fund) 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 (the index). The index includes the largest 2,500 constituents in the Dow Jones U.S. Total Stock Market Index^SM and represents approximately 99% of the investable U.S. stock market by market capitalization. The fund invests in a representative sample of securities included in the index that collectively has a similar investment profile to the index. Due to the use of representative sampling, the fund may not hold all of the securities in the index.

During the six-month period that ended February 28, 2011, the fund’s market price return was 29.25% and its NAV return was 29.12%. (For an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 29.32% during the same period.

All sectors reported positive returns in the U.S. Broad Market ETF. The best performing sectors for the fund and the index were Energy and Industrials. The weakest performing sector for the fund and the index was Utilities. Information Technology, with an average weight of over 18% of the fund and index during the period, was the best contributor to fund and index returns.

As of 2/28/11:

Statistics


Number of Holdings		1,511
Weighted Average Market Cap ($ x 1,000,000)		$76,348
Price/Earnings Ratio (P/E)		19.4
Price/Book Ratio (P/B)		2.3
Portfolio Turnover Rate²		2%

Sector Weightings % of Investments


Information Technology		18.5%
Financials		16.7%
Energy		12.2%
Industrials		11.4%
Consumer Discretionary		11.3%
Health Care		10.9%
Consumer Staples		8.8%
Materials		4.3%
Utilities		3.3%
Telecommunication Services		2.6%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Exxon Mobil Corp.		2.9%
Apple, Inc.		2.2%
General Electric Co.		1.5%
Chevron Corp.		1.4%
Microsoft Corp.		1.4%
International Business Machines Corp.		1.4%
JPMorgan Chase & Co.		1.2%
The Procter & Gamble Co.		1.2%
Johnson & Johnson		1.2%
AT&T, Inc.		1.1%
Total		15.5%

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

An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of operational and transaction costs incurred by the fund.

Source of Sector Classification: S&P and MSCI.


¹		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

6 Schwab U.S. ETFs

Schwab U.S. Broad Market ETF^tm

Performance Summary as of 2/28/11

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, 2011
Performance of a Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab U.S. Broad Market ETF^tm (11/3/09)
NAV Return²		29.12	%		24.20	%		24.72	%
Market Price Return²		29.25	%		24.23	%		24.78	%
Dow Jones U.S. Broad Stock Market Index^SM		29.32	%		24.46	%		24.99	%
ETF Category: Morningstar Large Blend³		35.67	%		28.10	%		26.36	%

Fund Expense Ratio⁴: 0.06%

Style Assessment⁵

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.

Index ownership—“Dow Jones” and “The Dow Jones U.S. Broad Stock Market Index^SM” are service marks of Dow Jones Trademark Holdings, LLC, (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”), and sublicensed for use for certain purposes by CSIM, the fund’s investment adviser. Fees payable under the license are paid by CSIM. The Schwab U.S. Broad Market ETF, based on The Dow Jones U.S. Broad Stock Market Index^SM, is not sponsored, endorsed, sold or promoted by Dow Jones or CME Indexes and neither makes any representation regarding the advisability of trading in such product.


*		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		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 Price 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.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		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 2/28/11, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab U.S. ETFs 7

Schwab U.S. Large-Cap ETF™

The Schwab U.S. Large-Cap ETF (the fund) 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 (the index). The index includes approximately the largest 750 constituents of the Dow Jones U.S. Total Stock Market Index^SM. The fund will generally give the same weight to a given stock as the index does.

During the six-month period that ended February 28, 2011, the fund’s market price return was 28.17% and its NAV return was 28.03%. (For an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 28.20% during the same period.

All sectors reported positive returns in the U.S. Large-Cap ETF. The best performing sectors for the fund and the index were Energy and Industrials. The weakest performing sector for the fund and the index was Utilities. Information Technology, with an average weight of over 18% of the fund and index during the period, was the best contributor to fund and index returns.

As of 2/28/11:

Statistics


Number of Holdings		753
Weighted Average Market Cap ($ x 1,000,000)		$85,608
Price/Earnings Ratio (P/E)		18.2
Price/Book Ratio (P/B)		2.4
Portfolio Turnover Rate²		3%

Sector Weightings % of Investments


Information Technology		18.3%
Financials		16.3%
Energy		12.8%
Health Care		11.0%
Industrials		10.9%
Consumer Discretionary		10.9%
Consumer Staples		9.5%
Materials		4.1%
Utilities		3.4%
Telecommunication Services		2.8%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Exxon Mobil Corp.		3.3%
Apple, Inc.		2.5%
General Electric Co.		1.7%
Chevron Corp.		1.6%
Microsoft Corp.		1.5%
International Business Machines Corp.		1.5%
JPMorgan Chase & Co.		1.4%
The Procter & Gamble Co.		1.3%
Johnson & Johnson		1.3%
AT&T, Inc.		1.3%
Total		17.4%

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

Source of Sector Classification: S&P and MSCI.


¹		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

8 Schwab U.S. ETFs

Schwab U.S. Large-Cap ETF^tm

Performance Summary as of 2/28/11

November 3, 2009 – February 28, 2011
Performance of a Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab U.S. Large-Cap ETF^tm (11/3/09)
NAV Return²		28.03	%		23.04	%		23.26	%
Market Price Return²		28.17	%		22.98	%		23.32	%
Dow Jones U.S. Large-Cap Total Stock Market Index^SM		28.20	%		23.23	%		23.44	%
ETF Category: Morningstar Large Blend³		35.67	%		28.10	%		26.36	%

Fund Expense Ratio⁴: 0.08%

Style Assessment⁵

Index ownership—“Dow Jones” and “The Dow Jones U.S. Large-Cap Total Stock Market Index^SM” are service marks of Dow Jones Trademark Holdings, LLC, (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”), and sublicensed for use for certain purposes by CSIM, the fund’s investment adviser. Fees payable under the license are paid by CSIM. The Schwab U.S. Large-Cap ETF, based on The Dow Jones U.S. Large-Cap Total Stock Market Index^SM, is not sponsored, endorsed, sold or promoted by Dow Jones or CME Indexes and neither makes any representation regarding the advisability of trading in such product.


*		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		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 Price 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.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		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 2/28/11, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab U.S. ETFs 9

Schwab U.S. Large-Cap Growth ETF™

The Schwab U.S. Large-Cap Growth ETF (the fund) 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 (the index). The index includes approximately 430 constituents with growth characteristics of the Dow Jones U.S. Total Stock Market Index^SM. The fund will generally give the same weight to a given stock as the index does.

During the six-month period that ended February 28, 2011, the fund’s market price return was 31.82% and its NAV return was 31.83%. (For an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 32.02% during the same period.

All sectors reported positive returns in the U.S. Large-Cap Growth ETF. The best performing sectors for the fund and the index were Energy and Industrials. The weakest performing sector for the fund and the index was Telecommunication Services. Information Technology, with an average weight of over 30% of the fund and index during the period, was the best contributor to fund and index returns.

As of 2/28/11:

Statistics


Number of Holdings		433
Weighted Average Market Cap ($ x 1,000,000)		$63,663
Price/Earnings Ratio (P/E)		20.4
Price/Book Ratio (P/B)		3.1
Portfolio Turnover Rate²		4%

Sector Weightings % of Investments


Information Technology		30.3%
Consumer Discretionary		13.2%
Health Care		12.7%
Energy		11.7%
Industrials		10.5%
Financials		8.1%
Consumer Staples		7.0%
Materials		5.2%
Telecommunication Services		0.8%
Utilities		0.5%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Apple, Inc.		5.1%
Microsoft Corp.		3.2%
Berkshire Hathaway, Inc., Class B		2.6%
Google, Inc., Class A		2.2%
Schlumberger Ltd.		2.0%
Oracle Corp.		2.0%
Wal-Mart Stores, Inc.		1.7%
Cisco Systems, Inc.		1.6%
Hewlett-Packard Co.		1.6%
PepsiCo, Inc.		1.5%
Total		23.5%

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

Source of Sector Classification: S&P and MSCI.


¹		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

10 Schwab U.S. ETFs

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

Performance Summary as of 2/28/11

December 11, 2009 – February 28, 2011
Performance of a Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab U.S. Large-Cap Growth ETF^tm (12/11/09)
NAV Return²		31.83	%		24.04	%		21.37	%
Market Price Return²		31.82	%		23.83	%		21.28	%
Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM		32.02	%		24.32	%		21.55	%
ETF Category: Morningstar Large Growth³		37.15	%		29.84	%		23.21	%

Fund Expense Ratio⁴: 0.13%

Style Assessment⁵

Index ownership—“Dow Jones” and “The Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”), and sublicensed for use for certain purposes by CSIM, the fund’s investment adviser. Fees payable under the license are paid by CSIM. The Schwab U.S. Large-Cap Growth ETF, based on The Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM, is not sponsored, endorsed, sold or promoted by Dow Jones or CME Indexes and neither makes any representation regarding the advisability of trading in such product.


*		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		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 Price 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.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		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 2/28/11, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab U.S. ETFs 11

Schwab U.S. Large-Cap Value ETF™

The Schwab U.S. Large-Cap Value ETF (the fund) 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 (the index). The index includes approximately 320 constituents with value characteristics of the Dow Jones U.S. Total Stock Market Index^SM. The fund will generally give the same weight to a given stock as the index does.

During the six-month period that ended February 28, 2011, the fund’s market price return was 24.72% and its NAV return was 24.68%. (For an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 24.86% during the same period.

All sectors reported positive returns in the U.S. Large-Cap Value ETF. The best performing sectors for the fund and the index were Energy and Materials. The weakest performing sector for the fund and the index was Utilities. Financials, with an average weight of over 23% of the fund and index during the period, was the best contributor to fund and index returns.

As of 2/28/11:

Statistics


Number of Holdings		321
Weighted Average Market Cap ($ x 1,000,000)		$106,013
Price/Earnings Ratio (P/E)		16.6
Price/Book Ratio (P/B)		1.9
Portfolio Turnover Rate²		4%

Sector Weightings % of Investments


Financials		24.0%
Energy		13.9%
Consumer Staples		11.8%
Industrials		11.2%
Health Care		9.3%
Consumer Discretionary		8.7%
Information Technology		7.1%
Utilities		6.1%
Telecommunication Services		4.8%
Materials		3.0%
Other		0.1%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Exxon Mobil Corp.		6.3%
General Electric Co.		3.3%
Chevron Corp.		3.0%
International Business Machines Corp.		2.9%
JPMorgan Chase & Co.		2.7%
The Procter & Gamble Co.		2.6%
Johnson & Johnson		2.5%
AT&T, Inc.		2.5%
Wells Fargo & Co.		2.3%
Pfizer, Inc.		2.3%
Total		30.4%

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

Source of Sector Classification: S&P and MSCI.


¹		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

12 Schwab U.S. ETFs

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

Performance Summary as of 2/28/11

December 11, 2009 – February 28, 2011
Performance of a Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab U.S. Large-Cap Value ETF^tm (12/11/09)
NAV Return²		24.68	%		21.94	%		17.86	%
Market Price Return²		24.72	%		21.64	%		17.89	%
Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM		24.86	%		22.21	%		18.13	%
ETF Category: Morningstar Large Value³		25.05	%		22.90	%		19.09	%

Fund Expense Ratio⁴: 0.13%

Style Assessment⁵

Index ownership—“Dow Jones” and “The Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”), and sublicensed for use for certain purposes by CSIM, the fund’s investment adviser. Fees payable under the license are paid by CSIM. The Schwab U.S. Large-Cap Value ETF, based on The Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM, is not sponsored, endorsed, sold or promoted by Dow Jones or CME Indexes and neither makes any representation regarding the advisability of trading in such product.


*		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		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 Price 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.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		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 2/28/11, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab U.S. ETFs 13

Schwab U.S. Mid-Cap ETF™

The Schwab U.S. Mid-Cap ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Mid-Cap Total Stock Market Index^SM (the index). The index includes the components ranked 501-1000 by full market capitalization of the Dow Jones U.S. Total Stock Market Index^SM. The index is a float-adjusted market capitalization weighted index. The fund will generally give the same weight to a given security as the index does.

During the reporting period that began with the fund’s inception date of January 13, 2011 and ended February 28, 2011, the fund’s market price return was 4.61% and its NAV return was 4.61%. (For an explanation of the market price and NAV returns, please refer to footnote 2 on the following page) The index returned 4.63% during the same period.

All sectors reported positive returns in the U.S. Mid-Cap ETF. The best performing sectors for the fund and the index were Energy and Consumer Discretionary. The weakest performing sector for the fund and the index was Industrials. Energy, with an average weight of over 7% of the fund and index during the period, was the best contributor to fund and index returns.

As of 2/28/11:

Statistics


Number of Holdings		496
Weighted Average Market Cap ($ x 1,000,000)		$4,416
Price/Earnings Ratio (P/E)		22.9
Price/Book Ratio (P/B)		2.3
Portfolio Turnover Rate²		1%

Sector Weightings % of Investments


Financials		20.0%
Industrials		15.6%
Consumer Discretionary		14.9%
Information Technology		14.3%
Health Care		9.3%
Materials		7.9%
Energy		7.6%
Utilities		6.4%
Consumer Staples		3.0%
Telecommunication Services		1.0%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Concho Resources, Inc.		0.6%
BorgWarner, Inc.		0.5%
Alexion Pharmaceuticals, Inc.		0.5%
Teradata Corp.		0.5%
CarMax, Inc.		0.5%
Tiffany & Co.		0.5%
Whiting Petroleum Corp.		0.5%
Chipotle Mexican Grill, Inc.		0.5%
United Continental Holdings, Inc.		0.5%
CB Richard Ellis Group, Inc., Class A		0.4%
Total		5.0%

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

Source of Sector Classification: S&P and MSCI.


¹		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

14 Schwab U.S. ETFs

Schwab U.S. Mid-Cap ETF^tm

Performance Summary as of 2/28/11

January 13, 2011 – February 28, 2011
Performance of a Hypothetical
$10,000 Investment¹

Total Returns¹


Fund and Inception Date	Since Inception*


Fund: Schwab U.S. Mid-Cap ETF^tm (1/13/11)
NAV Return²		4.61	%
Market Price Return²		4.61	%
Dow Jones U.S. Mid-Cap Total Stock Market Index^SM		4.63	%
ETF Category: Morningstar Mid-Cap Blend³		5.16	%

Fund Expense Ratio⁴: 0.13%

Style Assessment⁵

Index ownership—“Dow Jones” and “The Dow Jones U.S. Mid-Cap Total Stock Market Index^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”), and sublicensed for use for certain purposes by CSIM, the fund’s investment adviser. Fees payable under the license are paid by CSIM. The Schwab U.S. Mid-Cap ETF, based on The Dow Jones U.S. Mid-Cap Total Stock Market Index^SM, is not sponsored, endorsed, sold or promoted by Dow Jones or CME Indexes and neither makes any representation regarding the advisability of trading in such product.


*		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		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 Price 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.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		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 2/28/11, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab U.S. ETFs 15

Schwab U.S. Small-Cap ETF™

The Schwab U.S. Small-Cap ETF (the fund) 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 (the index). The index includes approximately 1,750 of the smallest issuers ranked by market capitalization of the Dow Jones U.S. Total Stock Market Index^SM. The fund will generally give the same weight to a given stock as the index does.

During the six-month period that ended February 28, 2011, the fund’s market price return was 38.79% and its NAV return was 38.41%. (For an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 38.66% during the same period.

All sectors reported positive returns in the U.S. Small-Cap ETF. The best performing sectors for the fund and the index were Energy and Information Technology. The weakest performing sector for the fund and the index was Utilities. Information Technology, with an average weight of over 19% of the fund and index during the period, was the best contributor to fund and index returns.

As of 2/28/11:

Statistics


Number of Holdings		1,755
Weighted Average Market Cap ($ x 1,000,000)		$1,943
Price/Earnings Ratio (P/E)		62.6
Price/Book Ratio (P/B)		2.2
Portfolio Turnover Rate²		4%

Sector Weightings % of Investments


Financials		20.2%
Information Technology		20.0%
Industrials		15.3%
Consumer Discretionary		14.6%
Health Care		10.5%
Energy		6.9%
Materials		6.1%
Consumer Staples		2.8%
Utilities		2.5%
Telecommunication Services		1.0%
Other		0.1%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Atmel Corp.		0.4%
Skyworks Solutions, Inc.		0.4%
Riverbed Technology, Inc.		0.4%
JDS Uniphase Corp.		0.3%
SM Energy Co.		0.3%
Alexandria Real Estate Equities, Inc.		0.3%
Informatica Corp.		0.3%
Chimera Investment Corp.		0.3%
Brigham Exploration Co.		0.3%
Jones Lang LaSalle, Inc.		0.2%
Total		3.2%

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

Source of Sector Classification: S&P and MSCI.


¹		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

16 Schwab U.S. ETFs

Schwab U.S. Small-Cap ETF^tm

Performance Summary as of 2/28/11

November 3, 2009 – February 28, 2011
Performance of a Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab U.S. Small-Cap ETF^tm (11/3/09)
NAV Return²		38.41	%		34.32	%		37.54	%
Market Price Return²		38.79	%		34.48	%		37.62	%
Dow Jones U.S. Small-Cap Total Stock Market Index^SM		38.66	%		34.66	%		37.96	%
ETF Category: Morningstar Small Blend³		57.66	%		43.68	%		42.77	%

Fund Expense Ratio⁴: 0.13%

Style Assessment⁵

Investments in smaller companies typically exhibit higher volatility.

Index ownership—“Dow Jones” and “The Dow Jones U.S. Small-Cap Total Stock Market Index^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”), and sublicensed for use for certain purposes by CSIM, the fund’s investment adviser. Fees payable under the license are payable by CSIM. The Schwab U.S. Small-Cap ETF, based on The Dow Jones U.S. Small-Cap Total Stock Market Index^SM, is not sponsored, endorsed, sold or promoted by Dow Jones or CME Indexes and neither makes any representation regarding the advisability of trading in such product.


*		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		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 Price 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.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		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 2/28/11, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab U.S. ETFs 17

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

As a fund shareholder, you incur two types of costs: transaction costs, such as brokerage commissions and 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 six months beginning September 1, 2010 (or, for the Schwab U.S. Mid-Cap ETF, since commencement of operations on January 12, 2011) and held through February 28, 2011.

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, including any redemption fees or brokerage commissions you may pay when purchasing or redeeming shares of the fund. If these transactional costs were included, your costs would have been higher.


					Ending
					Account Value
	Expense Ratio¹		Beginning		(Net of Expenses)		Expenses Paid
	(Annualized)		Account Value		at 2/28/11		During Period

Schwab U.S. Broad Market ETF^tm2
Actual Return		0.06%	$	1,000	$	1,291.20	$	0.34
Hypothetical 5% Return		0.06%	$	1,000	$	1,024.50	$	0.30


Schwab U.S. Large-Cap ETF^tm2
Actual Return		0.08%	$	1,000	$	1,280.30	$	0.45
Hypothetical 5% Return		0.08%	$	1,000	$	1,024.40	$	0.40


Schwab U.S. Large-Cap Growth ETF^tm2
Actual Return		0.13%	$	1,000	$	1,318.30	$	0.75
Hypothetical 5% Return		0.13%	$	1,000	$	1,024.15	$	0.65


Schwab U.S. Large-Cap Value ETF^tm2
Actual Return		0.13%	$	1,000	$	1,246.70	$	0.72
Hypothetical 5% Return		0.13%	$	1,000	$	1,024.15	$	0.65


Schwab U.S. Mid-Cap ETF^tm3
Actual Return		0.13%	$	1,000	$	1,054.00	$	0.18
Hypothetical 5% Return		0.13%	$	1,000	$	1,006.40	$	0.17


Schwab U.S. Small-Cap ETF^tm2
Actual Return		0.13%	$	1,000	$	1,384.10	$	0.77
Hypothetical 5% Return		0.13%	$	1,000	$	1,024.15	$	0.65


¹		Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights.
²		Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days of the period, and divided by the 365 days of the fiscal year.
³		Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 48 days of the period (from commencement of operations on 1/12/11 through 2/28/11), and divided by the 365 days of the fiscal year.

18 Schwab U.S. ETFs

Schwab U.S. Broad Market ETF™

Financial Statements

Financial Highlights


	9/1/10–			10/30/09¹–
	2/28/11*			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		25.11			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.28	²		0.42	²
Net realized and unrealized gains (losses)		7.00			(0.05	)

Total from investment operations		7.28			0.37
Less distributions:
Distributions from net investment income		(0.24	)		(0.26	)

Net asset value at end of period		32.15			25.11

Total return (%)		29.12	³		1.42	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.06	⁴		0.07	^4,5
Gross operating expenses		0.06	⁴		0.07	⁴
Net investment income (loss)		1.93	⁴		1.92	⁴
Portfolio turnover rate⁶		2	³		2	³
Net assets, end of period ($ x 1,000)		689,555			272,490

* Unaudited.

¹ Commencement of operations.

² Calculated based on the average shares outstanding during the period.

³ Not annualized.

⁴ Annualized.

⁵ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended August 31, 2010 is a blended rate.

⁶ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

See financial notes 19

Schwab U.S. Broad Market ETF

Portfolio Holdings as of February 28, 2011 (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 fund also makes available its complete schedule of portfolio holdings on a daily basis on Schwab’s website at www.schwabetfs.com.


				Cost		Value
Holdings by Category				($)		($)

	99	.8%	Common Stock		613,341,395		688,045,405
		—%	Other Investment Company		251,622		251,622
		—%	Corporate Bond		2,061		1,287


	99	.8%	Total Investments		613,595,078		688,298,314
	0	.3%	Collateral Invested for Securities on Loan		1,690,839		1,690,839
	(0	.1)%	Other Assets and Liabilities, Net				(434,553	)


	100	.0%	Net Assets				689,554,600


	Number		Value
Security	of Shares		($)

Common Stock 99.8% of net assets

Automobiles & Components 1.0%
ArvinMeritor, Inc. *		3,910		70,067
BorgWarner, Inc. *		5,577		432,831
Cooper Tire & Rubber Co.		4,290		100,643
Dana Holding Corp. *		7,293		137,692
Ford Motor Co. *		159,595		2,401,905
General Motors Co. *		25,668		860,648
Gentex Corp.		6,435		194,852
Harley-Davidson, Inc.		11,154		455,306
Johnson Controls, Inc.		31,317		1,277,734
Lear Corp. *		2,574		272,329
Tenneco, Inc. *		2,574		102,651
Tesla Motors, Inc. *(a)		2,574		61,493
The Goodyear Tire & Rubber Co. *		13,728		194,663
Thor Industries, Inc.		2,145		71,300
TRW Automotive Holdings Corp. *		4,290		243,672
Visteon Corp. *		2,586		191,235
WABCO Holdings, Inc. *		3,003		175,465

				7,244,486

Banks 3.2%
Associated Banc-Corp		6,864		99,322
Astoria Financial Corp.		6,864		96,233
BancorpSouth, Inc.		3,432		54,706
Bank of Hawaii Corp.		2,145		101,158
BB&T Corp.		32,175		888,030
Beneficial Mutual Bancorp, Inc. *		68		612
BOK Financial Corp.		1,716		88,117
CapitalSource, Inc.		20,163		152,836
Capitol Federal Financial, Inc.		6,525		82,476
Cathay General Bancorp		4,840		85,765
City National Corp.		2,145		126,362
Columbia Banking System, Inc.		2,678		53,132
Comerica, Inc.		8,199		318,941
Commerce Bancshares, Inc.		3,507		140,841
Community Bank System, Inc.		1,716		43,175
Cullen/Frost Bankers, Inc.		2,574		150,733
CVB Financial Corp.		8,580		71,729
East West Bancorp, Inc.		6,884		159,847
F.N.B. Corp.		9,438		94,663
Fifth Third Bancorp		42,590		621,814
First Citizens BancShares, Inc., Class A		429		86,658
First Financial Bancorp		2,630		44,526
First Financial Bankshares, Inc. (a)		1,287		64,607
First Horizon National Corp. *		10,744		123,556
First Interstate BancSystem, Inc.		32		457
First Midwest Bancorp, Inc.		3,956		47,749
First Niagara Financial Group, Inc.		8,580		124,238
FirstMerit Corp.		5,148		87,773
Fulton Financial Corp.		8,151		88,764
Glacier Bancorp, Inc.		5,148		80,463
Hancock Holding Co.		1,716		59,494
Home Bancshares, Inc.		1,339		30,168
Hudson City Bancorp, Inc.		22,737		261,476
Huntington Bancshares, Inc.		38,688		264,626
IBERIABANK Corp.		1,287		73,732
International Bancshares Corp.		4,290		81,896
Investors Bancorp, Inc. *		6,435		87,130
Kearny Financial Corp.		64		628
KeyCorp		42,900		392,106
M&T Bank Corp.		5,577		491,055
Marshall & Ilsley Corp.		23,166		180,000
MB Financial, Inc.		3,861		79,421
MGIC Investment Corp. *		9,438		81,072
National Penn Bancshares, Inc.		10,725		85,157
NBT Bancorp, Inc.		3,003		66,817
New York Community Bancorp, Inc.		20,163		376,242
NewAlliance Bancshares, Inc.		6,006		93,934
Northfield Bancorp, Inc.		2,574		34,466
Northwest Bancshares, Inc.		6,435		78,121
Ocwen Financial Corp. *		6,006		63,543
Old National Bancorp		6,435		72,072
PacWest Bancorp		2,145		44,423
Park National Corp. (a)		1,287		84,723
People’s United Financial, Inc.		16,302		214,860
PNC Financial Services Group, Inc.		24,453		1,508,750
Popular, Inc. *		47,299		153,722
PrivateBancorp, Inc.		3,861		55,290
Prosperity Bancshares, Inc.		2,145		87,559
Provident Financial Services, Inc.		3,432		50,828
Radian Group, Inc.		6,083		42,946
Regions Financial Corp.		57,486		439,193
Signature Bank *		2,145		111,304
SunTrust Banks, Inc.		23,595		711,861
Susquehanna Bancshares, Inc.		6,441		61,576
SVB Financial Group *		1,716		92,973
Synovus Financial Corp.		30,459		77,670
TCF Financial Corp.		5,577		90,515
Texas Capital Bancshares, Inc. *		3,003		75,796
TFS Financial Corp.		6,006		62,342
The PMI Group, Inc. *		13,329		39,454
Trustmark Corp.		3,432		80,480

20 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
U.S. Bancorp		90,519		2,510,092
UMB Financial Corp.		1,716		68,434
Umpqua Holdings Corp.		6,864		78,524
United Bankshares, Inc.		3,432		98,292
Valley National Bancorp		6,563		89,454
Washington Federal, Inc.		5,148		91,480
Webster Financial Corp.		2,618		60,685
Wells Fargo & Co.		229,575		7,406,090
Westamerica Bancorp		1,287		66,383
Whitney Holding Corp.		8,580		121,664
Wilmington Trust Corp.		48		216
Wintrust Financial Corp.		2,145		72,029
Zions Bancorp		8,151		190,407

				22,072,454

Capital Goods 8.6%
3M Co.		30,459		2,809,234
A.O. Smith Corp.		1,499		60,560
AAR CORP. *		1,716		46,830
Actuant Corp., Class A		3,861		109,266
Acuity Brands, Inc.		2,145		121,235
Aecom Technology Corp. *		4,719		135,152
Aerovironment, Inc. *		1,287		37,336
AGCO Corp. *		4,290		235,006
Aircastle Ltd.		3,861		46,641
Alliant Techsystems, Inc. *		1,716		123,844
American Science & Engineering, Inc.		429		40,326
American Superconductor Corp. *		2,145		56,885
AMETEK, Inc.		7,722		323,938
Armstrong World Industries, Inc.		1,716		71,454
Badger Meter, Inc.		858		33,728
Barnes Group, Inc.		3,861		82,162
BE Aerospace, Inc. *		5,148		173,591
Beacon Roofing Supply, Inc. *		2,145		45,495
Belden, Inc.		2,502		91,648
Brady Corp., Class A		2,145		76,662
Briggs & Stratton Corp.		3,432		69,086
Bucyrus International, Inc.		3,432		312,518
Carlisle Cos., Inc.		3,003		129,159
Caterpillar, Inc.		26,638		2,741,849
CLARCOR, Inc.		2,574		105,894
Cooper Industries plc		8,590		552,766
Crane Co.		2,574		121,596
Cubic Corp.		1,716		86,332
Cummins, Inc.		8,580		867,610
Curtiss-Wright Corp.		2,145		79,150
Danaher Corp.		23,166		1,172,200
Deere & Co.		19,734		1,779,020
DigitalGlobe, Inc. *		2,159		69,693
Donaldson Co., Inc.		3,432		193,222
Dover Corp.		8,580		551,265
Eaton Corp.		7,722		855,443
EMCOR Group, Inc. *		3,003		95,676
Emerson Electric Co.		35,607		2,124,314
EnerSys *		3,003		106,606
ESCO Technologies, Inc.		1,716		65,706
Esterline Technologies Corp. *		1,716		122,814
Fastenal Co.		6,435		399,807
First Solar, Inc. *(a)		3,003		442,612
Flowserve Corp.		2,574		321,673
Fluor Corp.		8,580		607,121
Foster Wheeler AG *		5,348		193,384
Franklin Electric Co., Inc.		1,287		54,697
Gardner Denver, Inc.		2,574		188,262
GATX Corp.		2,574		89,292
General Cable Corp. *		2,270		98,563
General Dynamics Corp.		15,444		1,175,597
General Electric Co.		495,312		10,361,927
Goodrich Corp.		6,006		517,897
Graco, Inc.		3,003		122,252
GrafTech International Ltd. *		6,006		120,180
Granite Construction, Inc.		2,574		73,359
Griffon Corp. *		3,003		36,216
GT Solar International, Inc. *		6,006		64,204
Harsco Corp.		3,861		131,930
HEICO Corp., Class A		2,615		102,299
Hexcel Corp. *		6,006		111,411
Honeywell International, Inc.		33,033		1,912,941
Hubbell, Inc., Class B		2,574		173,771
IDEX Corp.		3,861		159,228
II-VI, Inc. *		1,726		88,354
Illinois Tool Works, Inc.		20,163		1,090,818
Ingersoll-Rand plc		14,649		663,600
InsituForm Technologies, Inc., Class A *		1,716		44,341
ITT Corp.		8,580		497,039
Jacobs Engineering Group, Inc. *		6,006		300,660
Joy Global, Inc.		5,148		501,312
Kaman Corp.		1,287		41,017
Kaydon Corp.		2,145		84,170
KBR, Inc.		7,722		253,282
Kennametal, Inc.		3,861		148,494
L-3 Communications Holdings, Inc.		5,577		442,200
Lennox International, Inc.		2,574		124,839
Lincoln Electric Holdings, Inc.		2,145		153,110
Lockheed Martin Corp.		13,338		1,055,836
Masco Corp.		18,018		244,865
MasTec, Inc. *		5,577		103,844
McDermott International, Inc. *		11,154		255,984
Moog, Inc., Class A *		2,574		116,885
MSC Industrial Direct Co., Class A		2,145		135,543
Mueller Industries, Inc.		2,574		87,465
Navistar International Corp. *		2,574		159,537
Nordson Corp.		1,287		140,167
Northrop Grumman Corp.		12,613		841,035
Orbital Sciences Corp. *		2,574		45,791
Oshkosh Corp. *		4,290		153,024
Otter Tail Corp.		3,003		67,628
Owens Corning, Inc. *		4,719		168,610
PACCAR, Inc.		17,160		860,231
Pall Corp.		5,577		303,166
Parker Hannifin Corp.		7,722		688,648
Pentair, Inc.		4,719		174,980
Precision Castparts Corp.		6,864		972,972
Quanex Building Products Corp.		1,716		32,415
Quanta Services, Inc. *		9,438		215,281
Raytheon Co.		18,018		922,702
Regal-Beloit Corp.		1,716		125,182
Robbins & Myers, Inc.		3,003		128,018
Rockwell Automation, Inc.		6,864		602,179
Rockwell Collins, Inc.		7,293		469,961
Roper Industries, Inc.		4,290		360,918
RSC Holdings, Inc. *		4,719		64,320

See financial notes 21

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Simpson Manufacturing Co., Inc.		2,574		74,466
Snap-On, Inc.		2,574		147,825
Spirit AeroSystems Holdings, Inc., Class A *		4,719		122,647
SPX Corp.		2,574		205,302
SunPower Corp., Class A *		4,383		74,818
Teledyne Technologies, Inc. *		2,145		112,334
Terex Corp. *		5,577		188,224
Textainer Group Holdings Ltd.		2,145		75,826
Textron, Inc.		13,299		360,270
The Babcock & Wilcox Co. *		5,577		188,335
The Boeing Co.		30,990		2,231,590
The Manitowoc Co., Inc.		7,293		144,474
The Middleby Corp. *		1,287		115,405
The Shaw Group, Inc. *		3,861		153,359
The Timken Co.		3,861		188,108
The Toro Co.		1,716		107,078
Thomas & Betts Corp. *		2,574		142,574
TransDigm Group, Inc. *		1,716		137,932
Trinity Industries, Inc.		3,861		120,270
Triumph Group, Inc.		1,287		111,441
Tutor Perini Corp.		3,432		81,750
Tyco International Ltd.		22,908		1,038,649
United Technologies Corp.		40,767		3,405,675
Universal Forest Products, Inc.		858		29,258
URS Corp. *		3,861		179,652
USG Corp. *		5,148		88,237
Valmont Industries, Inc.		858		87,585
W.W. Grainger, Inc.		3,003		400,030
Wabtec Corp.		2,145		121,750
Watsco, Inc.		1,287		83,114
Watts Water Technologies, Inc., Class A		2,145		83,891
WESCO International, Inc. *		2,574		149,858
Woodward, Inc.		2,574		84,659

				59,148,344

Commercial & Professional Services 1.0%
ABM Industries, Inc.		3,432		91,394
Avery Dennison Corp.		5,148		205,508
Cintas Corp.		6,864		193,016
Clean Harbors, Inc. *		1,716		157,666
Copart, Inc. *		3,432		144,178
Corrections Corp. of America *		5,148		127,876
CoStar Group, Inc. *		1,716		97,246
Covanta Holding Corp.		6,435		108,880
Deluxe Corp.		5,148		131,531
EnergySolutions, Inc.		76		503
EnerNOC, Inc. *		20		386
Equifax, Inc.		6,006		214,714
FTI Consulting, Inc. *		2,574		84,916
Healthcare Services Group, Inc.		5,148		91,480
Herman Miller, Inc.		4,290		115,573
HNI Corp.		2,574		81,673
IHS, Inc., Class A *		2,145		179,536
Interface, Inc., Class A		4,719		78,666
Iron Mountain, Inc.		8,580		223,080
KAR Auction Services, Inc. *		4,291		60,246
Korn/Ferry International *		4,290		98,069
Manpower, Inc.		3,861		245,173
Mine Safety Appliances Co.		2,574		92,999
Monster Worldwide, Inc. *		6,435		110,360
Navigant Consulting, Inc. *		28		263
Nielsen Holdings N.V. *		2,604		69,240
Pitney Bowes, Inc.		9,867		248,451
R.R. Donnelley & Sons Co.		9,867		183,724
Republic Services, Inc.		14,586		431,891
Resources Connection, Inc.		3,861		74,479
Robert Half International, Inc.		7,293		232,647
Rollins, Inc.		5,148		101,004
Steelcase, Inc., Class A		6,070		58,940
Stericycle, Inc. *		3,861		333,668
Sykes Enterprises, Inc. *		3,003		55,856
Tetra Tech, Inc. *		2,574		60,489
The Brink’s Co.		2,574		79,459
The Corporate Executive Board Co.		2,574		103,140
The Dun & Bradstreet Corp.		2,574		207,979
The Geo Group, Inc. *		3,432		87,276
Towers Watson & Co., Class A		2,145		126,126
TrueBlue, Inc. *		2,574		41,570
United Stationers, Inc. *		1,287		86,770
Verisk Analytics, Inc., Class A *		5,396		174,561
Waste Connections, Inc.		5,707		165,446
Waste Management, Inc.		21,879		810,836

				6,668,484

Consumer Durables & Apparel 1.4%
American Greetings Corp., Class A		3,003		65,015
Brunswick Corp.		7,293		167,958
Carter’s, Inc. *		3,003		86,066
Coach, Inc.		14,167		778,052
Columbia Sportswear Co.		1,716		107,748
Crocs, Inc. *		4,770		84,191
D.R. Horton, Inc.		13,728		162,540
Deckers Outdoor Corp. *		2,574		227,078
Eastman Kodak Co. *		19,734		67,096
Fortune Brands, Inc.		7,293		451,145
Fossil, Inc. *		2,574		197,529
Garmin Ltd. (a)		5,577		189,339
Hanesbrands, Inc. *		4,719		122,269
Harman International Industries, Inc. *		3,003		146,066
Hasbro, Inc.		5,577		250,407
Iconix Brand Group, Inc. *		6,006		132,733
Jarden Corp.		3,861		126,911
KB HOME		4,719		62,527
Leggett & Platt, Inc.		7,722		178,069
Lennar Corp., Class A		7,293		147,027
M.D.C Holdings, Inc.		2,145		56,306
Mattel, Inc.		17,589		440,780
Mohawk Industries, Inc. *		2,574		149,575
Newell Rubbermaid, Inc.		13,728		265,500
NIKE, Inc., Class B		14,157		1,260,398
NVR, Inc. *		434		315,891
Phillips-Van Heusen Corp.		3,003		180,210
Polaris Industries, Inc.		1,716		129,472
Polo Ralph Lauren Corp.		3,003		380,510
Pool Corp.		3,861		96,371
Pulte Group, Inc. *		16,302		112,484
Skechers U.S.A., Inc., Class A *		1,716		35,658
Stanley Black & Decker, Inc.		8,151		618,090
Tempur-Pedic International, Inc. *		3,861		181,235
The Jones Group, Inc.		4,290		57,057

22 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
The Ryland Group, Inc.		3,861		67,027
The Timberland Co., Class A *		2,145		79,236
The Warnaco Group, Inc. *		2,145		125,933
Toll Brothers, Inc. *		6,435		136,808
Tupperware Brands Corp.		3,003		161,111
Under Armour, Inc., Class A *		2,574		170,476
UniFirst Corp.		858		48,391
VF Corp.		4,290		410,424
Whirlpool Corp.		3,432		283,140
Wolverine World Wide, Inc.		2,574		94,620

				9,606,469

Consumer Services 2.2%
Ameristar Casinos, Inc.		40		670
Apollo Group, Inc., Class A *		6,006		271,832
Bally Technologies, Inc. *		2,574		99,434
Bob Evans Farms, Inc.		2,574		80,669
Boyd Gaming Corp. *		8,580		91,720
Bridgepoint Education, Inc. *(a)		4,719		88,340
Brinker International, Inc.		5,577		131,840
Buffalo Wild Wings, Inc. *		1,716		90,931
Career Education Corp. *		3,003		72,402
Carnival Corp.		20,163		860,355
Chipotle Mexican Grill, Inc. *		1,716		420,420
Choice Hotels International, Inc.		2,145		82,840
Coinstar, Inc. *		1,360		58,045
Cracker Barrel Old Country Store, Inc.		1,287		64,144
Darden Restaurants, Inc.		6,435		303,282
DeVry, Inc.		3,003		162,913
Gaylord Entertainment Co. *		1,716		61,827
Grand Canyon Education, Inc. *		20		322
H&R Block, Inc.		15,873		241,111
Hillenbrand, Inc.		3,432		74,646
Hyatt Hotels Corp., Class A *		1,716		78,507
International Game Technology		14,586		240,086
International Speedway Corp., Class A		2,574		71,351
ITT Educational Services, Inc. *		1,716		130,159
Jack in the Box, Inc. *		3,432		75,504
Las Vegas Sands Corp. *		21,450		1,000,428
Life Time Fitness, Inc. *		3,003		115,165
Marriott International, Inc., Class A		14,586		571,917
Matthews International Corp., Class A		1,716		63,749
McDonald’s Corp.		49,403		3,738,819
MGM Resorts International *		14,826		206,674
Orient-Express Hotels Ltd., Class A *		4,290		54,140
P.F. Chang’s China Bistro, Inc.		858		39,845
Panera Bread Co., Class A *		1,287		150,257
Penn National Gaming, Inc. *		3,003		107,417
Regis Corp.		4,290		75,204
Royal Caribbean Cruises Ltd. *		6,435		281,789
Scientific Games Corp., Class A *		5,148		46,126
Service Corp. International		12,012		130,931
Six Flags Entertainment Corp.		1,716		107,010
Sotheby’s		3,099		152,533
Starbucks Corp.		34,749		1,146,022
Starwood Hotels & Resorts Worldwide, Inc.		8,151		498,026
Strayer Education, Inc. (a)		858		117,923
The Cheesecake Factory, Inc. *		3,432		99,665
Vail Resorts, Inc. *		1,716		83,741
Weight Watchers International, Inc.		2,574		157,349
Wendy’s/Arby’s Group, Inc., Class A		17,589		83,724
WMS Industries, Inc. *		2,574		102,419
Wyndham Worldwide Corp.		8,580		268,382
Wynn Resorts Ltd.		4,290		527,370
Yum! Brands, Inc.		21,879		1,101,170

				14,881,145

Diversified Financials 6.6%
Affiliated Managers Group, Inc. *		2,574		274,775
American Express Co.		50,193		2,186,909
Ameriprise Financial, Inc.		12,012		760,600
Artio Global Investors, Inc.		2,574		40,798
Bank of America Corp.		460,463		6,580,016
Bank of New York Mellon Corp.		56,628		1,720,925
BlackRock, Inc.		4,290		875,117
Capital One Financial Corp.		21,879		1,088,918
Cash America International, Inc.		2,145		91,613
CBOE Holdings, Inc.		2,145		63,471
CIT Group, Inc. *		8,151		353,101
Citigroup, Inc. *		1,335,094		6,248,240
CME Group, Inc.		3,078		958,120
Cohen & Steers, Inc.		3,432		100,214
Credit Acceptance Corp. *		1,287		90,862
Discover Financial Services		25,740		559,845
Duff & Phelps Corp., Class A		3,861		60,811
ETRADE Financial Corp.		9,240		147,655
Eaton Vance Corp.		5,577		174,560
EZCORP, Inc., Class A *		1,912		54,836
Federated Investors, Inc., Class B (a)		4,719		130,056
Franklin Resources, Inc.		7,298		916,775
GAMCO Investors, Inc., Class A		858		39,846
Greenhill & Co., Inc.		1,287		92,445
IntercontinentalExchange, Inc. *		3,432		439,982
Invesco Ltd.		21,879		587,232
Investment Technology Group, Inc. *		2,574		49,292
Janus Capital Group, Inc.		8,580		115,229
Jefferies Group, Inc.		5,148		123,861
JPMorgan Chase & Co.		181,048		8,453,131
KBW, Inc.		2,145		54,891
Knight Capital Group, Inc., Class A *		4,290		60,103
Legg Mason, Inc.		7,722		279,922
Leucadia National Corp.		9,438		312,681
MF Global Holdings Ltd. *		9,438		81,827
Moody’s Corp.		9,867		314,757
Morgan Stanley		63,607		1,887,856
MSCI, Inc., Class A *		5,287		187,689
Northern Trust Corp.		11,583		597,335
NYSE Euronext		12,441		460,317
optionsXpress Holdings, Inc.		4,290		69,541
PICO Holdings, Inc. *		2,145		63,728
Piper Jaffray Cos., Inc. *		1,287		52,960
Portfolio Recovery Associates, Inc. *		1,215		101,270
Raymond James Financial, Inc.		4,719		180,832
SEI Investments Co.		7,722		177,683
SLM Corp. *		22,308		330,605
State Street Corp.		23,166		1,035,984
Stifel Financial Corp. *		1,287		92,329
T. Rowe Price Group, Inc.		12,012		804,564
TD Ameritrade Holding Corp.		11,154		243,157
The Charles Schwab Corp. (b)		44,862		851,032

See financial notes 23

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
The Goldman Sachs Group, Inc.		20,163		3,302,296
The NASDAQ OMX Group, Inc. *		7,293		208,653
Waddell & Reed Financial, Inc., Class A		3,861		155,907

				45,287,154

Energy 12.0%
Alpha Natural Resources, Inc. *		5,594		303,307
Anadarko Petroleum Corp.		23,595		1,930,779
Apache Corp.		16,805		2,094,239
Arch Coal, Inc.		7,722		258,919
Atwood Oceanics, Inc. *		2,574		117,168
Baker Hughes, Inc.		20,300		1,442,315
Berry Petroleum Co., Class A		2,574		133,822
Bill Barrett Corp. *		1,840		71,539
Brigham Exploration Co. *		7,293		266,778
Bristow Group, Inc. *		2,145		102,788
Cabot Oil & Gas Corp.		5,148		235,058
Cameron International Corp. *		12,012		710,270
CARBO Ceramics, Inc.		1,287		159,549
Chesapeake Energy Corp.		30,459		1,084,645
Chevron Corp.		93,534		9,704,152
Cimarex Energy Co.		4,290		498,198
Clean Energy Fuels Corp. *		3,003		42,162
Cobalt International Energy, Inc. *		5,644		88,385
Complete Production Services, Inc. *		3,861		111,235
Concho Resources, Inc. *		4,320		460,166
ConocoPhillips		64,867		5,051,193
CONSOL Energy, Inc.		10,419		528,347
Contango Oil & Gas Co. *		429		26,289
Continental Resources, Inc. *		1,716		119,313
Denbury Resources, Inc. *		18,496		448,158
Devon Energy Corp.		19,311		1,765,798
Diamond Offshore Drilling, Inc.		3,003		234,925
Dresser-Rand Group, Inc. *		4,290		211,411
Dril-Quip, Inc. *		1,287		98,713
El Paso Corp.		33,891		630,373
EOG Resources, Inc.		12,012		1,349,068
EXCO Resources, Inc.		8,151		166,851
Exterran Holdings, Inc. *		3,003		68,168
Exxon Mobil Corp.		233,386		19,961,505
FMC Technologies, Inc. *		6,006		564,864
Forest Oil Corp. *		5,148		182,703
Frontier Oil Corp.		5,148		143,629
Gulfport Energy Corp. *		2,165		64,062
Halliburton Co.		42,900		2,013,726
Helix Energy Solutions Group, Inc. *		4,719		72,673
Helmerich & Payne, Inc.		4,719		306,688
Hess Corp.		13,733		1,195,183
Holly Corp.		2,145		122,565
ION Geophysical Corp. *		8,151		104,496
Key Energy Services, Inc. *		8,151		126,340
Kinder Morgan, Inc. *		4,340		132,370
Lufkin Industries, Inc.		1,716		134,105
Marathon Oil Corp.		33,891		1,680,994
Massey Energy Co.		5,148		326,023
McMoRan Exploration Co. *		2,618		45,815
Murphy Oil Corp.		9,009		662,432
Nabors Industries Ltd. *		14,157		403,050
National-Oilwell Varco, Inc.		20,163		1,604,370
Newfield Exploration Co. *		6,435		468,404
Noble Corp.		11,762		525,879
Noble Energy, Inc.		8,580		795,023
Oasis Petroleum, Inc. *		3,432		118,473
Occidental Petroleum Corp.		37,848		3,859,361
Oceaneering International, Inc. *		2,574		215,264
Oil States International, Inc. *		2,145		156,135
Overseas Shipholding Group, Inc. (a)		1,716		57,932
Patriot Coal Corp. *		5,577		131,617
Patterson-UTI Energy, Inc.		7,722		211,119
Peabody Energy Corp.		13,299		870,951
Penn Virginia Corp.		3,003		48,859
Petrohawk Energy Corp. *		15,015		324,324
Pioneer Drilling Co. *		5,577		63,132
Pioneer Natural Resources Co.		4,719		482,942
Plains Exploration & Production Co. *		6,864		268,863
Pride International, Inc. *		7,722		320,540
QEP Resources, Inc.		7,722		305,405
Quicksilver Resources, Inc. *		6,006		93,033
Range Resources Corp.		7,722		419,305
Rosetta Resources, Inc. *		3,003		136,216
Rowan Cos., Inc. *		5,148		219,665
SandRidge Energy, Inc. *		16,752		181,089
Schlumberger Ltd.		63,933		5,972,621
SEACOR Holdings, Inc.		858		81,313
Ship Finance International Ltd.		3,432		71,351
SM Energy Co.		3,003		217,627
Southern Union Co.		5,577		159,056
Southwestern Energy Co. *		16,302		643,603
Spectra Energy Corp.		30,459		814,778
Sunoco, Inc.		5,577		233,453
Superior Energy Services, Inc. *		3,861		147,915
Swift Energy Co. *		1,716		73,702
Teekay Corp.		3,432		118,095
Tesco Corp. *		3,861		71,004
Tesoro Corp. *		6,864		163,226
TETRA Technologies, Inc. *		3,247		44,841
The Williams Cos., Inc.		27,456		833,564
Tidewater, Inc.		2,574		160,129
Ultra Petroleum Corp. *		7,293		330,738
Unit Corp. *		2,145		127,627
Valero Energy Corp.		26,598		749,532
Weatherford International Ltd. *		34,333		830,172
Whiting Petroleum Corp. *		6,006		392,432
World Fuel Services Corp.		2,574		106,667

				82,978,651

Food & Staples Retailing 1.9%
BJ’s Wholesale Club, Inc. *		2,574		124,633
Casey’s General Stores, Inc.		2,145		88,095
Costco Wholesale Corp.		20,592		1,540,076
CVS Caremark Corp.		63,637		2,103,839
Nash Finch Co.		858		34,637
PriceSmart, Inc.		1,716		61,072
Ruddick Corp.		1,874		68,776
Safeway, Inc.		19,305		421,235
SUPERVALU, Inc.		9,629		83,098
Sysco Corp.		27,456		763,002
The Andersons, Inc.		1,287		61,828
The Kroger Co.		28,743		658,215
United Natural Foods, Inc. *		1,926		81,759
Wal-Mart Stores, Inc.		93,286		4,849,006

24 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Walgreen Co.		46,761		2,026,622
Whole Foods Market, Inc.		6,149		360,085
Winn-Dixie Stores, Inc. *		72		503

				13,326,481

Food, Beverage & Tobacco 4.7%
Altria Group, Inc.		96,954		2,459,723
Archer-Daniels-Midland Co.		27,456		1,020,814
Brown-Forman Corp., Class B		5,148		355,984
Bunge Ltd.		6,582		475,023
Campbell Soup Co.		9,867		332,123
Central European Distribution Corp. *		3,003		68,619
Chiquita Brands International, Inc. *		3,861		66,371
Coca-Cola Enterprises, Inc.		15,444		406,177
ConAgra Foods, Inc.		21,021		486,846
Constellation Brands, Inc., Class A *		9,438		191,780
Corn Products International, Inc.		3,861		188,494
Dean Foods Co. *		8,151		86,075
Del Monte Foods Co.		9,009		170,540
Dole Food Co., Inc. *(a)		4,719		69,605
Dr. Pepper Snapple Group, Inc.		11,319		408,163
Flowers Foods, Inc.		3,861		102,703
General Mills, Inc.		29,172		1,083,448
Green Mountain Coffee Roasters, Inc. *		5,148		209,935
H.J. Heinz Co.		14,586		732,509
Hansen Natural Corp. *		3,432		197,512
Hormel Foods Corp.		6,864		188,074
J&J Snack Foods Corp.		910		40,013
Kellogg Co.		12,035		644,595
Kraft Foods, Inc., Class A		75,504		2,404,047
Lancaster Colony Corp.		870		50,216
Lorillard, Inc.		6,905		530,097
McCormick & Co., Inc.		5,148		245,302
Molson Coors Brewing Co., Class B		7,293		333,509
PepsiCo, Inc.		73,886		4,685,850
Philip Morris International, Inc.		84,947		5,332,973
Ralcorp Holdings, Inc. *		2,574		166,924
Reynolds American, Inc.		15,444		530,038
Sara Lee Corp.		31,317		536,147
Smithfield Foods, Inc. *		7,293		168,833
Snyders-Lance, Inc.		2,574		46,898
The Coca-Cola Co.		98,672		6,307,114
The Hershey Co.		7,293		381,570
The J.M. Smucker Co.		5,577		383,921
Tootsie Roll Industries, Inc.		1,182		33,805
TreeHouse Foods, Inc. *		1,716		89,524
Tyson Foods, Inc., Class A		13,299		247,760
Universal Corp.		1,716		71,763
Vector Group Ltd. (a)		2,420		40,874

				32,572,291

Health Care Equipment & Services 4.4%
Aetna, Inc.		21,021		785,345
Alere, Inc. *		3,861		149,189
Align Technology, Inc. *		3,861		80,502
Allscripts Healthcare Solutions, Inc. *		7,423		158,481
American Medical Systems Holdings, Inc. *		3,436		75,283
AMERIGROUP Corp. *		3,003		172,222
AmerisourceBergen Corp.		14,157		536,692
AmSurg Corp. *		3,003		70,961
athenahealth, Inc. *		1,496		67,829
Baxter International, Inc.		27,057		1,438,080
Beckman Coulter, Inc.		3,432		285,302
Becton, Dickinson & Co.		10,725		858,000
Boston Scientific Corp. *		71,643		512,964
Brookdale Senior Living, Inc. *		4,290		115,358
C.R. Bard, Inc.		4,719		461,329
Cardinal Health, Inc.		17,160		714,542
CareFusion Corp. *		10,116		276,369
Catalyst Health Solutions, Inc. *		2,145		96,975
Cerner Corp. *		3,432		344,744
Chemed Corp.		1,287		84,221
CIGNA Corp.		12,870		541,441
Community Health Systems, Inc. *		4,719		192,866
CONMED Corp. *		3,003		79,519
Coventry Health Care, Inc. *		7,293		220,249
Covidien plc		23,264		1,196,933
Cyberonics, Inc. *		1,716		56,679
DaVita, Inc. *		4,719		374,547
DENTSPLY International, Inc.		6,864		256,508
Edwards Lifesciences Corp. *		5,148		437,786
Emdeon, Inc., Class A *		2,604		40,883
Emergency Medical Services Corp., Class A *		1,287		81,274
Emeritus Corp. *		3,003		70,661
Express Scripts, Inc. *		24,024		1,350,629
Gen-Probe, Inc. *		2,145		134,878
Gentiva Health Services, Inc. *		2,574		72,664
Haemonetics Corp. *		1,287		79,344
Health Management Associates, Inc., Class A *		12,441		124,410
Health Net, Inc. *		4,719		138,833
HEALTHSOUTH Corp. *		4,290		103,861
Healthspring, Inc. *		2,574		96,885
Henry Schein, Inc. *		4,290		295,924
Hill-Rom Holdings, Inc.		3,003		114,324
HMS Holdings Corp. *		1,716		129,661
Hologic, Inc. *		12,012		242,402
Hospira, Inc. *		7,722		408,108
Humana, Inc. *		8,151		529,896
IDEXX Laboratories, Inc. *		3,003		233,333
Immucor, Inc. *		3,861		75,174
Integra LifeSciences Holdings Corp. *		1,301		65,245
Intuitive Surgical, Inc. *		1,767		579,488
Invacare Corp.		3,003		88,799
Kindred Healthcare, Inc. *		4,290		106,907
Kinetic Concepts, Inc. *		3,003		147,057
Laboratory Corp. of America Holdings *		5,148		463,989
Landauer, Inc.		429		26,984
LHC Group, Inc. *		8		239
LifePoint Hospitals, Inc. *		2,574		100,335
Lincare Holdings, Inc.		4,387		128,715
Magellan Health Services, Inc. *		2,145		102,917
Masimo Corp.		2,574		77,580
McKesson Corp.		12,870		1,020,334
MedAssets, Inc. *		3,003		42,552
Medco Health Solutions, Inc. *		19,551		1,205,124
MEDNAX, Inc. *		2,145		139,275
Medtronic, Inc.		50,194		2,003,744

See financial notes 25

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Meridian Bioscience, Inc.		3,003		64,775
NuVasive, Inc. *		1,762		47,098
Omnicare, Inc.		5,577		159,669
Owens & Minor, Inc.		3,071		95,815
Patterson Cos., Inc.		4,719		157,520
PSS World Medical, Inc. *		3,003		78,138
Quality Systems, Inc.		1,287		102,831
Quest Diagnostics, Inc.		7,293		413,878
ResMed, Inc. *		6,864		216,902
Select Medical Holdings Corp. *		64		499
Sirona Dental Systems, Inc. *		2,145		108,237
St. Jude Medical, Inc. *		16,313		781,066
STERIS Corp.		2,314		78,329
Stryker Corp.		14,586		922,710
Teleflex, Inc.		1,716		100,197
Tenet Healthcare Corp. *		23,166		166,332
The Cooper Cos., Inc.		2,145		132,604
Thoratec Corp. *		2,574		71,763
UnitedHealth Group, Inc.		52,012		2,214,671
Universal American Financial Corp.		3,861		79,459
Universal Health Services, Inc., Class B		4,290		196,096
Varian Medical Systems, Inc. *		6,006		416,096
VCA Antech, Inc. *		3,861		96,679
Volcano Corp. *		2,274		59,670
WellCare Health Plans, Inc. *		2,574		96,654
WellPoint, Inc. *		18,489		1,228,964
West Pharmaceutical Services, Inc.		1,716		70,545
Wright Medical Group, Inc. *		2,574		40,746
Zimmer Holdings, Inc. *		10,296		641,853
Zoll Medical Corp. *		1,287		59,562

				30,162,702

Household & Personal Products 2.1%
Alberto-Culver Co.		3,861		143,784
Avon Products, Inc.		20,163		560,733
Church & Dwight Co., Inc.		3,432		258,910
Colgate-Palmolive Co.		22,747		1,786,094
Energizer Holdings, Inc. *		3,432		229,360
Herbalife Ltd.		3,003		235,465
Kimberly-Clark Corp.		19,734		1,300,471
Mead Johnson Nutrition Co.		9,462		566,301
Nu Skin Enterprises, Inc., Class A		3,003		95,856
Spectrum Brands Holdings, Inc. *		2,145		61,561
The Clorox Co.		6,435		436,036
The Estee Lauder Cos., Inc., Class A		5,577		526,524
The Procter & Gamble Co.		129,236		8,148,330

				14,349,425

Insurance 4.1%
ACE Ltd.		15,575		985,119
Aflac, Inc.		22,308		1,313,049
Alleghany Corp. *		431		146,863
Allied World Assurance Co. Holdings Ltd.		1,716		105,894
American Financial Group, Inc.		3,432		118,850
American International Group, Inc. *(a)		5,934		219,914
American National Insurance Co.		858		69,730
AMERISAFE, Inc. *		858		17,126
AmTrust Financial Services, Inc.		3,003		57,748
Aon Corp.		13,895		731,433
Arch Capital Group Ltd. *		2,574		232,947
Argo Group International Holdings Ltd.		1,716		65,362
Arthur J. Gallagher & Co.		5,148		161,647
Aspen Insurance Holdings Ltd.		3,432		101,416
Assurant, Inc.		5,577		226,593
Assured Guaranty Ltd.		7,796		113,276
Axis Capital Holdings Ltd.		6,864		249,300
Berkshire Hathaway, Inc., Class B *		89,244		7,789,216
Brown & Brown, Inc.		5,577		145,783
Cincinnati Financial Corp.		7,293		248,327
CNA Surety Corp. *		2,145		54,226
CNO Financial Group, Inc. *		10,298		74,557
Delphi Financial Group, Inc., Class A		1,509		46,719
Endurance Specialty Holdings Ltd.		2,574		127,645
Enstar Group Ltd. *		429		35,976
Erie Indemnity Co., Class A		1,716		119,845
Everest Re Group Ltd.		2,574		228,185
FBL Financial Group, Inc., Class A		429		13,402
Fidelity National Financial, Inc., Class A		11,154		154,483
First American Financial Corp.		6,006		94,655
Flagstone Reinsurance Holdings S.A.		3,003		34,234
Genworth Financial, Inc., Class A *		24,024		317,837
Greenlight Capital Re Ltd., Class A *		1,287		37,246
Hanover Insurance Group, Inc.		2,574		119,614
Harleysville Group, Inc.		858		31,360
HCC Insurance Holdings, Inc.		5,148		160,309
Hilltop Holdings, Inc. *		28		271
Infinity Property & Casualty Corp.		429		26,045
Lincoln National Corp.		14,157		449,060
Loews Corp.		16,731		723,616
Markel Corp. *		429		178,314
Marsh & McLennan Cos., Inc.		24,882		757,408
MBIA, Inc. *		10,296		115,418
MetLife, Inc.		32,532		1,540,715
Montpelier Re Holdings Ltd.		3,861		77,876
Old Republic International Corp.		11,298		141,225
OneBeacon Insurance Group Ltd., Class A		26		356
PartnerRe Ltd.		3,873		307,129
Platinum Underwriters Holdings Ltd.		2,145		89,446
Principal Financial Group, Inc.		14,586		499,716
ProAssurance Corp. *		1,716		108,674
Protective Life Corp.		3,861		109,768
Prudential Financial, Inc.		21,879		1,440,295
Reinsurance Group of America, Inc.		3,432		207,258
RenaissanceRe Holdings Ltd.		3,003		201,261
Safety Insurance Group, Inc.		858		41,287
Selective Insurance Group, Inc.		2,574		46,795
StanCorp Financial Group, Inc.		2,145		98,670
State Auto Financial Corp.		2,145		37,066
The Allstate Corp.		25,311		804,384
The Chubb Corp.		14,596		885,685
The Hartford Financial Services Group, Inc.		20,681		612,158
The Progressive Corp.		30,030		625,525
The Travelers Cos., Inc.		21,817		1,307,493
Torchmark Corp.		3,861		251,930
Tower Group, Inc.		1,716		46,641
Transatlantic Holdings, Inc.		3,003		152,943

26 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Unum Group		15,873		421,111
Validus Holdings Ltd.		4,290		132,775
W.R. Berkley Corp.		6,864		205,577
White Mountains Insurance Group Ltd.		429		162,913
XL Group plc		16,302		380,652

				27,937,342

Materials 4.3%
AbitibiBowater, Inc. *		3,374		94,438
Air Products & Chemicals, Inc.		9,438		868,296
Airgas, Inc.		3,861		241,621
AK Steel Holding Corp.		5,577		89,120
Albemarle Corp.		4,290		246,932
Alcoa, Inc.		48,048		809,609
Allegheny Technologies, Inc.		4,719		316,550
Allied Nevada Gold Corp. *		3,861		117,143
AMCOL International Corp.		2,574		80,334
AptarGroup, Inc.		3,003		144,654
Arch Chemicals, Inc.		986		35,447
Ashland, Inc.		3,432		193,222
Ball Corp.		8,580		309,738
Bemis Co., Inc.		5,148		169,112
Cabot Corp.		3,003		129,910
Calgon Carbon Corp. *		4,719		66,255
Carpenter Technology Corp.		3,432		142,703
Celanese Corp., Series A		6,864		284,513
Century Aluminum Co. *		2,574		43,629
CF Industries Holdings, Inc.		3,432		484,873
Chemtura Corp. *		4,495		73,134
Cliffs Natural Resources, Inc.		6,435		624,645
Coeur d’Alene Mines Corp. *		3,966		124,969
Commercial Metals Co.		5,577		92,969
Compass Minerals International, Inc.		1,716		160,394
Crown Holdings, Inc. *		7,722		297,143
Cytec Industries, Inc.		2,145		121,900
Domtar Corp.		2,586		226,016
E.I. du Pont de Nemours & Co.		42,072		2,308,491
Eagle Materials, Inc.		2,574		83,192
Eastman Chemical Co.		3,003		280,510
Ecolab, Inc.		11,154		542,531
FMC Corp.		3,432		265,774
Freeport-McMoRan Copper & Gold, Inc.		43,758		2,316,986
Graphic Packaging Holding Co. *		14,157		73,616
Greif, Inc., Class A		1,716		110,957
H.B. Fuller Co.		3,432		73,960
Hecla Mining Co. *		12,012		121,922
Huntsman Corp.		8,580		151,437
International Flavors & Fragrances, Inc.		3,432		195,452
International Paper Co.		19,305		536,293
Intrepid Potash, Inc. *		2,574		99,356
Kaiser Aluminum Corp.		1,716		86,709
LyondellBasell Industries N.V., Class A *		16,731		637,116
Martin Marietta Materials, Inc.		2,145		190,605
MeadWestvaco Corp.		8,151		239,232
Minerals Technologies, Inc.		1,287		83,501
Molycorp, Inc. *(a)		1,302		62,483
Monsanto Co.		25,740		1,850,449
Nalco Holding Co.		6,435		164,543
NewMarket Corp.		455		58,290
Newmont Mining Corp.		22,737		1,256,674
Nucor Corp.		13,728		658,395
Olin Corp.		4,290		79,837
OM Group, Inc. *		2,145		75,483
Owens-Illinois, Inc. *		8,151		248,524
Packaging Corp. of America		4,719		135,860
PPG Industries, Inc.		8,151		720,385
Praxair, Inc.		14,586		1,449,557
Reliance Steel & Aluminum Co.		3,861		213,629
Rock-Tenn Co., Class A (a)		1,716		117,803
Rockwood Holdings, Inc. *		3,432		159,760
Royal Gold, Inc.		2,583		128,168
RPM International, Inc.		6,435		147,812
Schnitzer Steel Industries, Inc., Class A		1,287		82,625
Schweitzer-Mauduit International, Inc.		1,287		70,566
Sealed Air Corp.		7,293		200,703
Sensient Technologies Corp.		2,574		85,920
Sigma-Aldrich Corp.		5,148		328,906
Silgan Holdings, Inc.		2,246		81,934
Smurfit-Stone Container Corp. *		4,081		156,874
Solutia, Inc. *		6,006		139,399
Sonoco Products Co.		4,719		170,261
Southern Copper Corp.		10,296		435,727
Steel Dynamics, Inc.		10,296		190,064
Stillwater Mining Co. *		3,861		92,162
Temple-Inland, Inc.		5,148		120,412
Texas Industries, Inc.		1,716		69,978
The Dow Chemical Co.		54,054		2,008,647
The Lubrizol Corp.		3,432		373,642
The Mosaic Co.		7,293		626,104
The Scotts Miracle-Gro Co., Class A		2,145		120,485
The Valspar Corp.		4,290		163,106
Titanium Metals Corp. *		4,719		89,614
United States Steel Corp.		6,864		394,611
Valhi, Inc.		3,861		92,239
Vulcan Materials Co.		5,148		236,036
W.R. Grace & Co. *		3,003		114,234
Walter Energy, Inc.		2,574		311,480
Westlake Chemical Corp.		1,162		55,555
Weyerhaeuser Co.		24,882		607,370
Worthington Industries, Inc.		3,035		58,758

				29,991,973

Media 3.2%
Belo Corp., Class A *		3,861		30,772
Cablevision Systems Corp., Class A		11,154		411,025
CBS Corp., Class B		29,601		706,280
Charter Communications, Inc., Class A *		2,145		98,177
Cinemark Holdings, Inc.		3,432		68,915
Clear Channel Outdoor Holdings, Inc., Class A *		4,290		63,235
Comcast Corp., Class A		132,174		3,404,802
DIRECTV, Class A *		38,431		1,766,673
Discovery Communications, Inc., Series A *		13,299		573,320
DISH Network Corp., Class A *		10,296		239,382

See financial notes 27

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
DreamWorks Animation SKG, Inc., Class A *		3,432		94,792
Gannett Co., Inc.		12,012		198,318
John Wiley & Sons, Inc., Class A		2,145		102,553
Lamar Advertising Co., Class A *		3,003		116,426
Liberty Global, Inc., Series A *		12,012		505,705
Liberty Media - Starz, Series A *		2,931		205,756
Liberty Media Corp. - Capital, Series A *		3,861		280,154
Live Nation Entertainment, Inc. *		6,526		69,371
Madison Square Garden, Inc., Class A *		2,627		75,027
Morningstar, Inc.		1,287		75,521
News Corp., Class A		111,111		1,929,998
Omnicom Group, Inc.		14,586		742,427
Scripps Networks Interactive, Class A		3,861		200,540
Sirius XM Radio, Inc. *		185,757		336,220
The Interpublic Group of Cos., Inc. *		22,737		300,128
The McGraw-Hill Cos., Inc.		15,015		580,780
The New York Times Co., Class A *		7,722		80,309
The Walt Disney Co.		82,019		3,587,511
The Washington Post Co., Class B (a)		435		188,394
Time Warner Cable, Inc.		17,160		1,238,609
Time Warner, Inc.		52,011		1,986,820
Valassis Communications, Inc. *		2,145		60,532
Viacom, Inc., Class B		25,740		1,149,549
Virgin Media, Inc.		13,728		373,951

				21,841,972

Pharmaceuticals, Biotechnology & Life Sciences 6.4%
Abbott Laboratories		71,266		3,427,895
Acorda Therapeutics, Inc. *		3,003		62,973
Alexion Pharmaceuticals, Inc. *		4,290		413,041
Alkermes, Inc. *		8,151		116,804
Allergan, Inc.		15,015		1,113,663
Alnylam Pharmaceuticals, Inc. *		36		395
Amgen, Inc. *		44,756		2,297,325
Amylin Pharmaceuticals, Inc. *		6,864		105,019
Auxilium Pharmaceuticals, Inc. *		2,145		48,198
Bio-Rad Laboratories, Inc., Class A *		858		97,949
Biogen Idec, Inc. *		10,421		712,796
BioMarin Pharmaceutical, Inc. *		5,148		125,920
Bristol-Myers Squibb Co.		80,281		2,072,053
Bruker Corp. *		3,861		74,093
Celgene Corp. *		21,664		1,150,358
Cephalon, Inc. *		3,432		193,256
Charles River Laboratories International, Inc. *		3,003		109,429
Covance, Inc. *		3,003		169,459
Cubist Pharmaceuticals, Inc. *		3,861		84,672
Dendreon Corp. *		6,558		220,283
Dionex Corp. *		858		101,090
Eli Lilly & Co.		46,332		1,601,234
Endo Pharmaceuticals Holdings, Inc. *		4,719		167,619
Exelixis, Inc. *		6,006		74,775
Forest Laboratories, Inc. *		14,157		458,687
Genzyme Corp. *		12,441		938,673
Gilead Sciences, Inc. *		38,745		1,510,280
Halozyme Therapeutics, Inc. *		10,725		74,110
Human Genome Sciences, Inc. *		8,580		214,757
Illumina, Inc. *		5,710		396,274
Impax Laboratories, Inc. *		3,865		79,580
Incyte Corp. *		6,006		82,162
InterMune, Inc. *		2,155		78,895
Ironwood Pharmaceuticals, Inc. *		4,446		54,375
Johnson & Johnson		129,057		7,929,262
King Pharmaceuticals, Inc. *(a)		10,692		152,254
Life Technologies Corp. *		8,580		457,915
Luminex Corp. *		4,719		88,812
MannKind Corp. *(a)		3,861		14,440
Medicis Pharmaceutical Corp., Class A		3,003		96,366
Merck & Co., Inc.		142,444		4,639,401
Mettler-Toledo International, Inc. *		1,716		294,071
Mylan, Inc. *		19,734		451,317
Myriad Genetics, Inc. *		4,290		79,451
Nektar Therapeutics *		4,334		41,563
Onyx Pharmaceuticals, Inc. *		3,003		105,826
Par Pharmaceutical Cos., Inc. *		3,003		92,733
PAREXEL International Corp. *		2,653		62,266
PDL BioPharma, Inc.		8,580		47,619
PerkinElmer, Inc.		6,006		159,159
Perrigo Co.		3,861		295,096
Pfizer, Inc.		373,907		7,193,971
Pharmaceutical Product Development, Inc.		5,577		153,200
Pharmasset, Inc. *		1,737		86,850
Regeneron Pharmaceuticals, Inc. *		3,861		140,038
Salix Pharmaceuticals Ltd. *		3,432		114,423
Savient Pharmaceuticals, Inc. *		5,577		53,762
Seattle Genetics, Inc. *		7,293		108,301
Talecris Biotherapeutics Holdings Corp. *		2,822		70,381
Targacept, Inc. *		1,716		49,198
Techne Corp.		1,716		123,020
Theravance, Inc. *		3,557		81,028
Thermo Fisher Scientific, Inc. *		18,876		1,053,658
United Therapeutics Corp. *		2,145		144,637
Vertex Pharmaceuticals, Inc. *		9,009		420,450
VIVUS, Inc. *		4,719		35,912
Warner Chilcott plc, Class A		5,248		124,273
Waters Corp. *		4,290		356,284
Watson Pharmaceuticals, Inc. *		5,577		312,256

				44,057,285

Real Estate 2.8%
Acadia Realty Trust		1,716		33,977
Alexander’s, Inc.		435		172,143
Alexandria Real Estate Equities, Inc.		2,145		172,029
AMB Property Corp.		7,293		265,319
American Campus Communities, Inc.		2,574		86,023
American Capital Agency Corp.		2,584		76,099
Annaly Capital Management, Inc.		33,058		592,730
Anworth Mortgage Asset Corp.		9,438		67,387
Apartment Investment & Management Co., Class A		6,006		154,054
AvalonBay Communities, Inc.		4,290		519,219
BioMed Realty Trust, Inc.		5,577		101,223
Boston Properties, Inc.		6,864		658,395
Brandywine Realty Trust		7,293		89,704
BRE Properties, Inc.		2,574		122,291
Brookfield Properties Corp. (a)		12,441		218,091

28 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Camden Property Trust		3,003		177,688
Capstead Mortgage Corp.		5,148		67,645
CB Richard Ellis Group, Inc., Class A *		13,739		344,025
CBL & Associates Properties, Inc.		8,151		145,495
Chimera Investment Corp.		46,422		200,079
Colonial Properties Trust		3,003		59,189
Colony Financial, Inc.		3,432		72,930
CommonWealth REIT		3,237		92,934
Corporate Office Properties Trust		2,574		92,329
Cousins Properties, Inc.		9,990		84,715
DCT Industrial Trust, Inc.		14,586		81,973
Developers Diversified Realty Corp.		8,701		124,424
DiamondRock Hospitality Co.		9,047		106,393
Digital Realty Trust, Inc. (a)		3,913		230,163
Douglas Emmett, Inc.		6,006		112,612
Duke Realty Corp.		10,725		150,901
DuPont Fabros Technology, Inc.		3,003		73,333
EastGroup Properties, Inc.		1,716		78,129
Entertainment Properties Trust		2,145		102,252
Equity Lifestyle Properties, Inc.		1,287		74,697
Equity One, Inc.		4,290		82,111
Equity Residential		14,167		780,743
Essex Property Trust, Inc.		1,287		159,305
Extra Space Storage, Inc.		7,293		144,037
Federal Realty Investment Trust		3,003		252,793
Forest City Enterprises, Inc., Class A *		7,722		145,946
Forestar Group, Inc. *		1,716		33,050
Franklin Street Properties Corp.		3,861		58,031
General Growth Properties, Inc. *		17,888		284,777
Government Properties Income Trust		2,154		58,524
Hatteras Financial Corp.		2,574		76,139
HCP, Inc.		17,160		652,080
Health Care REIT, Inc.		7,732		403,765
Healthcare Realty Trust, Inc.		3,432		79,966
Highwoods Properties, Inc.		3,432		116,448
Home Properties, Inc.		1,716		101,107
Hospitality Properties Trust		6,006		138,138
Host Hotels & Resorts, Inc.		29,611		544,842
Inland Real Estate Corp.		3,435		32,358
Investors Real Estate Trust		3,440		32,061
Jones Lang LaSalle, Inc.		2,145		211,111
Kilroy Realty Corp.		2,574		99,742
Kimco Realty Corp.		18,447		357,503
LaSalle Hotel Properties		3,861		108,919
Lexington Realty Trust		9,438		89,378
Liberty Property Trust		5,148		173,848
Mack-Cali Realty Corp.		3,432		116,482
Medical Properties Trust, Inc.		4,963		58,216
MFA Financial, Inc.		12,870		109,009
Mid-America Apartment Communities, Inc.		1,716		111,489
National Health Investors, Inc.		2,145		101,930
National Retail Properties, Inc.		4,290		110,210
Nationwide Health Properties, Inc.		6,006		256,696
OMEGA Healthcare Investors, Inc.		4,290		102,831
Pennsylvania Real Estate Investment Trust		1,873		27,046
Piedmont Office Realty Trust, Inc., Class A		6,073		121,460
Plum Creek Timber Co., Inc.		7,722		324,015
Post Properties, Inc.		2,145		83,655
Potlatch Corp.		2,145		82,368
ProLogis		25,547		415,394
PS Business Parks, Inc.		1,287		81,132
Public Storage		6,864		770,484
Rayonier, Inc.		3,861		236,795
Realty Income Corp.		4,719		169,742
Redwood Trust, Inc.		4,719		77,297
Regency Centers Corp.		4,290		194,122
Saul Centers, Inc.		1,314		60,444
Senior Housing Properties Trust		6,006		147,387
Simon Property Group, Inc.		13,728		1,510,629
SL Green Realty Corp.		3,432		259,905
Sovran Self Storage, Inc.		2,145		83,226
Starwood Property Trust, Inc.		3,432		80,274
Sunstone Hotel Investors, Inc. *		8,580		92,149
Tanger Factory Outlet Centers, Inc.		3,432		91,463
Taubman Centers, Inc.		2,574		142,806
The Howard Hughes Corp. *		1,719		99,307
The Macerich Co.		5,717		289,509
The St. Joe Co. *(a)		4,719		126,375
U-Store-It Trust		3,602		36,921
UDR, Inc.		8,333		202,659
Ventas, Inc.		7,293		404,178
Vornado Realty Trust		8,580		800,771
Washington Real Estate Investment Trust		2,574		80,412
Weingarten Realty Investors		6,006		155,375

				19,231,475

Retailing 3.6%
99 Cents Only Stores *		5,577		92,801
Aaron’s, Inc.		3,861		90,888
Abercrombie & Fitch Co., Class A		3,861		221,506
Advance Auto Parts, Inc.		4,290		268,897
Aeropostale, Inc. *		4,347		112,761
Amazon.com, Inc. *		16,302		2,824,974
American Eagle Outfitters, Inc.		8,580		131,703
AnnTaylor Stores Corp. *		2,691		62,458
Ascena Retail Group, Inc. *		3,432		107,216
AutoNation, Inc. *(a)		3,432		115,452
AutoZone, Inc. *		1,287		331,982
Barnes & Noble, Inc. (a)		3,861		51,699
Bed Bath & Beyond, Inc. *		12,441		599,034
Best Buy Co., Inc.		15,873		511,746
Big Lots, Inc. *		3,861		158,417
Blue Nile, Inc. *(a)		1,287		73,591
Cabela’s, Inc. *		2,427		65,845
CarMax, Inc. *		10,725		379,343
Chico’s FAS, Inc.		8,580		117,889
Collective Brands, Inc. *		3,861		88,031
Dick’s Sporting Goods, Inc. *		3,861		143,398
Dillard’s, Inc., Class A		3,003		127,147
Dollar General Corp. *		1,716		48,477
Dollar Tree, Inc. *		6,435		323,809
DSW, Inc., Class A *		1,716		69,687
Expedia, Inc.		9,867		195,959
Family Dollar Stores, Inc.		6,006		300,781
Foot Locker, Inc.		7,722		153,436
GameStop Corp., Class A *		7,293		145,495
Genuine Parts Co.		7,293		384,268
Group 1 Automotive, Inc.		2,145		90,626
Guess?, Inc.		3,871		175,318

See financial notes 29

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
hhgregg, Inc. *(a)		1,716		25,465
HSN, Inc. *		2,574		83,604
J. Crew Group, Inc. *		2,574		110,991
J.C. Penney Co., Inc.		9,867		344,950
Kohl’s Corp. *		13,728		739,802
Liberty Media Corp. - Interactive, Series A *		28,743		461,613
Limited Brands, Inc.		12,870		412,097
LKQ Corp. *		6,864		163,089
Lowe’s Cos., Inc.		63,708		1,667,238
Lumber Liquidators Holdings, Inc. *		1,287		29,961
Macy’s, Inc.		20,163		481,896
Netflix, Inc. *		2,145		443,307
Nordstrom, Inc.		8,151		368,914
O’Reilly Automotive, Inc. *		6,435		357,657
OfficeMax, Inc. *		6,435		88,417
Penske Automotive Group, Inc. *		6,030		122,831
PetSmart, Inc.		6,006		245,465
Priceline.com, Inc. *		2,245		1,018,961
RadioShack Corp.		6,006		88,889
Rent-A-Center, Inc.		3,861		127,645
Ross Stores, Inc.		6,006		432,672
Saks, Inc. *		7,293		89,339
Sally Beauty Holdings, Inc. *		5,234		67,885
Sears Holdings Corp. *(a)		2,574		214,440
Signet Jewelers Ltd. *		3,861		169,382
Staples, Inc.		33,891		721,878
Target Corp.		29,639		1,557,529
The Buckle, Inc.		2,145		83,848
The Children’s Place Retail Stores, Inc. *		1,716		78,421
The Gap, Inc.		17,744		399,772
The Home Depot, Inc.		75,673		2,835,467
The Men’s Wearhouse, Inc.		2,574		68,726
The Sherwin-Williams Co.		4,719		387,524
The TJX Cos., Inc.		19,734		984,135
Tiffany & Co.		6,006		369,669
Tractor Supply Co.		3,432		178,704
Ulta Salon, Cosmetics & Fragrance, Inc. *		2,574		107,413
Urban Outfitters, Inc. *		6,435		246,975
Williams-Sonoma, Inc.		4,719		170,309

				25,111,514

Semiconductors & Semiconductor Equipment 2.8%
Advanced Micro Devices, Inc. *		30,030		276,576
Altera Corp.		14,586		610,570
Amkor Technology, Inc. *		6,864		50,588
Analog Devices, Inc.		13,728		547,473
Applied Materials, Inc.		63,492		1,043,174
Applied Micro Circuits Corp. *		4,901		51,461
Atheros Communications *		3,003		134,564
Atmel Corp. *		21,263		312,141
Broadcom Corp., Class A		20,163		831,119
Cabot Microelectronics Corp. *		858		41,888
Cavium Networks, Inc. *		3,432		148,194
Cirrus Logic, Inc. *		3,533		82,496
Cree, Inc. *		6,016		316,863
Cymer, Inc. *		1,716		86,830
Cypress Semiconductor Corp. *		8,151		170,845
Diodes, Inc. *		1,716		49,695
Fairchild Semiconductor International, Inc. *		9,009		158,648
FEI Co. *		2,574		86,306
Hittite Microwave Corp. *		1,716		105,328
Integrated Device Technology, Inc. *		11,583		89,768
Intel Corp.		256,772		5,512,895
International Rectifier Corp. *		3,432		110,304
Intersil Corp., Class A		5,577		71,330
KLA-Tencor Corp.		8,151		397,932
Lam Research Corp. *		6,006		329,729
Linear Technology Corp.		9,867		341,004
LSI Corp. *		30,459		191,587
Marvell Technology Group Ltd. *		24,882		454,843
Maxim Integrated Products, Inc.		14,586		402,282
MEMC Electronic Materials, Inc. *		10,296		139,717
Microchip Technology, Inc.		8,580		316,688
Micron Technology, Inc. *		45,994		511,913
Microsemi Corp. *		4,719		103,960
MKS Instruments, Inc. *		4,290		128,786
Monolithic Power Systems, Inc. *		36		556
National Semiconductor Corp.		10,725		166,237
Netlogic Microsystems, Inc. *		3,432		142,050
Novellus Systems, Inc. *		4,290		171,428
NVIDIA Corp. *		26,169		592,990
OmniVision Technologies, Inc. *		2,574		78,816
ON Semiconductor Corp. *		20,592		229,601
PMC-Sierra, Inc. *		10,296		81,338
Power Integrations, Inc.		2,145		85,457
Rambus, Inc. *		5,148		105,791
RF Micro Devices, Inc. *		16,731		125,482
Semtech Corp. *		2,755		65,238
Silicon Laboratories, Inc. *		2,145		97,383
Skyworks Solutions, Inc. *		7,722		277,529
Teradyne, Inc. *		8,580		159,845
Tessera Technologies, Inc. *		2,574		44,813
Texas Instruments, Inc.		55,135		1,963,357
TriQuint Semiconductor, Inc. *		7,147		101,845
Varian Semiconductor Equipment Associates, Inc. *		3,432		163,741
Veeco Instruments, Inc. *(a)		1,817		86,453
Volterra Semiconductor Corp. *		2,145		54,118
Xilinx, Inc.		13,299		442,192

				19,443,757

Software & Services 7.2%
Accenture plc, Class A		29,314		1,509,085
Activision Blizzard, Inc.		27,456		305,311
Acxiom Corp. *		4,290		73,531
Adobe Systems, Inc. *		24,882		858,429
Advent Software, Inc. *		3,432		99,528
Akamai Technologies, Inc. *		8,580		322,007
Alliance Data Systems Corp. *		2,574		202,677
ANSYS, Inc. *		3,861		217,452
AOL, Inc. *		4,777		99,696
Ariba, Inc. *		6,006		185,886
Autodesk, Inc. *		10,725		450,986
Automatic Data Processing, Inc.		23,595		1,179,750
Blackbaud, Inc.		3,003		79,910
Blackboard, Inc. *(a)		1,716		60,077
BMC Software, Inc. *		8,580		424,710
Broadridge Financial Solutions, Inc.		6,435		147,490

30 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
CA, Inc.		19,734		489,009
CACI International, Inc., Class A *		1,287		76,345
Cadence Design Systems, Inc. *		12,441		123,788
Citrix Systems, Inc. *		8,580		601,973
Cognizant Technology Solutions Corp., Class A *		13,728		1,055,271
CommVault Systems, Inc. *		3,432		125,371
Computer Sciences Corp.		7,293		351,012
Compuware Corp. *		11,154		125,594
Concur Technologies, Inc. *		2,145		111,604
Convergys Corp. *		6,006		84,504
CoreLogic, Inc.		6,006		112,012
DealerTrack Holdings, Inc. *		1,716		34,629
Digital River, Inc. *		3,003		100,841
DST Systems, Inc.		1,716		87,516
EarthLink, Inc.		8,151		67,083
eBay, Inc. *		51,909		1,739,211
Electronic Arts, Inc. *		15,444		290,347
Equinix, Inc. *		2,574		222,497
Euronet Worldwide, Inc. *		2,574		46,512
FactSet Research Systems, Inc.		2,145		224,968
Fair Isaac Corp.		3,003		83,934
Fidelity National Information Services, Inc.		11,370		368,274
Fiserv, Inc. *		7,722		488,571
Fortinet, Inc. *		3,042		124,235
Gartner, Inc. *		3,432		129,455
Genpact Ltd. *		5,577		77,799
Global Payments, Inc.		3,861		185,289
Google, Inc., Class A *		10,756		6,597,730
GSI Commerce, Inc. *		3,432		71,351
IAC/InterActiveCorp *		5,148		159,948
Informatica Corp. *		3,861		181,506
Intuit, Inc. *		14,157		744,375
j2 Global Communications, Inc. *		3,432		99,837
Jack Henry & Associates, Inc.		3,861		123,204
JDA Software Group, Inc. *		2,574		75,933
Lawson Software, Inc. *		10,296		104,401
Lender Processing Services, Inc.		4,290		146,160
ManTech International Corp., Class A *		1,287		55,598
MasterCard, Inc., Class A		5,153		1,239,606
MAXIMUS, Inc.		1,287		95,238
McAfee, Inc. *		7,225		346,439
Mentor Graphics Corp. *		3,861		61,390
MICROS Systems, Inc., Class A *		3,861		183,938
Microsoft Corp.		351,058		9,331,122
MicroStrategy, Inc., Class A *		858		101,973
NetSuite, Inc. *		4,719		141,617
NeuStar, Inc., Class A *		3,432		86,658
Novell, Inc. *		16,731		98,378
Nuance Communications, Inc. *		10,296		192,123
Oracle Corp.		177,264		5,831,986
Parametric Technology Corp. *		5,148		122,008
Paychex, Inc.		15,444		519,382
Pegasystems, Inc.		2,145		86,401
Progress Software Corp. *		4,483		131,621
Quest Software, Inc. *		3,861		103,436
Rackspace Hosting, Inc. *		5,148		190,013
Red Hat, Inc. *		9,009		371,892
Rovi Corp. *		4,719		261,527
SAIC, Inc. *		18,489		302,110
Salesforce.com, Inc. *		5,577		737,670
Sapient Corp.		8,580		101,673
SAVVIS, Inc. *		4,290		139,382
Solarwinds, Inc. *		2,145		48,155
Solera Holdings, Inc.		3,003		153,393
Sourcefire, Inc. *		1,287		34,878
SRA International, Inc., Class A *		3,432		93,453
SuccessFactors, Inc. *		4,719		169,459
Symantec Corp. *		39,039		703,873
Synopsys, Inc. *		6,435		178,378
Syntel, Inc.		1,716		90,347
TeleTech Holdings, Inc. *		3,861		87,954
The Ultimate Software Group, Inc. *		1,287		68,777
TIBCO Software, Inc. *		8,580		211,240
TiVo, Inc. *		6,435		66,152
Total System Services, Inc.		9,438		167,524
Tyler Technologies, Inc. *		1,716		37,958
ValueClick, Inc. *		6,864		102,480
VeriFone Systems, Inc. *		5,148		233,925
VeriSign, Inc.		9,438		333,067
Visa, Inc., Class A		23,246		1,698,120
VistaPrint N.V. *		1,834		93,919
VMware, Inc., Class A *		3,432		287,087
WebMD Health Corp. *		2,145		124,410
Websense, Inc. *		3,861		82,703
Western Union Co.		33,033		726,396
Wright Express Corp. *		2,145		109,395
Yahoo!, Inc. *		58,410		957,924

				49,742,762

Technology Hardware & Equipment 8.5%
Acme Packet, Inc. *		2,574		193,668
ADTRAN, Inc.		3,003		136,576
Agilent Technologies, Inc. *		16,302		685,988
Amphenol Corp., Class A		8,151		468,519
Anixter International, Inc.		1,716		122,900
Apple, Inc. *		42,471		15,001,182
Arris Group, Inc. *		6,435		84,942
Arrow Electronics, Inc. *		6,006		235,435
Aruba Networks, Inc. *		4,719		143,694
Avnet, Inc. *		7,293		249,494
AVX Corp.		6,006		95,796
Benchmark Electronics, Inc. *		4,290		80,909
Blue Coat Systems, Inc. *		2,574		72,432
Brightpoint, Inc. *		9,009		113,513
Brocade Communications Systems, Inc. *		19,305		122,973
Ciena Corp. *		4,290		118,275
Cisco Systems, Inc. *		257,001		4,769,939
Cognex Corp.		3,861		107,761
Coherent, Inc. *		911		56,254
Comtech Telecommunications Corp.		2,145		58,022
Corning, Inc.		74,217		1,711,444
Dell, Inc. *		83,226		1,317,468
Diebold, Inc.		3,003		105,585
Dolby Laboratories, Inc., Class A *		2,574		130,167
EchoStar Corp., Class A *		3,861		133,977
EMC Corp. *		95,238		2,591,426
Emulex Corp. *		6,435		70,785
F5 Networks, Inc. *		3,861		455,637
Finisar Corp. *		3,505		143,775

See financial notes 31

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
FLIR Systems, Inc. *		7,293		235,564
Harris Corp.		6,006		280,240
Hewlett-Packard Co.		104,732		4,569,457
Infinera Corp. *		8,580		68,726
Ingram Micro, Inc., Class A *		7,293		145,349
InterDigital, Inc.		3,432		163,638
Intermec, Inc. *		5,148		57,812
International Business Machines Corp.		57,492		9,306,805
IPG Photonics Corp. *		2,145		122,093
Itron, Inc. *		1,716		97,314
Jabil Circuit, Inc.		9,438		202,256
JDS Uniphase Corp. *		11,583		285,753
Juniper Networks, Inc. *		25,311		1,113,684
Lexmark International, Inc., Class A *		3,432		128,803
Littelfuse, Inc.		858		45,328
Loral Space & Communications, Inc. *		858		64,916
Molex, Inc.		6,864		191,712
Motorola Mobility Holdings, Inc. *		12,663		382,423
Motorola Solutions, Inc. *		14,943		577,398
Multi-Fineline Electronix, Inc. *		24		687
National Instruments Corp.		4,502		140,163
NCR Corp. *		7,293		139,296
NetApp, Inc. *		16,731		864,323
NETGEAR, Inc. *		1,716		56,285
Plantronics, Inc.		2,574		89,807
Plexus Corp. *		2,574		80,901
Polycom, Inc. *		3,861		184,556
QLogic Corp. *		6,006		108,468
QUALCOMM, Inc.		74,311		4,427,449
Riverbed Technology, Inc. *		7,221		298,155
Rofin-Sinar Technologies, Inc. *		3,003		116,456
SanDisk Corp. *		10,725		531,960
Sanmina-SCI Corp. *		3,432		53,608
ScanSource, Inc. *		2,574		94,028
Seagate Technology plc *		23,595		299,657
STEC, Inc. *(a)		3,003		61,351
Sycamore Networks, Inc.		2,179		46,522
Synaptics, Inc. *		3,003		88,589
SYNNEX Corp. *		2,574		90,811
Tech Data Corp. *		2,145		106,349
Tekelec *		4,290		32,904
Tellabs, Inc.		16,731		90,180
Teradata Corp. *		7,722		369,266
Trimble Navigation Ltd. *		5,577		274,110
Tyco Electronics Ltd.		20,656		744,442
ViaSat, Inc. *		2,145		89,253
Vishay Intertechnology, Inc. *		10,296		179,665
Vishay Precision Group, Inc. *		567		9,384
Western Digital Corp. *		10,725		327,970
Xerox Corp.		62,209		668,747
Zebra Technologies Corp., Class A *		2,574		96,062

				58,379,211

Telecommunication Services 2.6%
AboveNet, Inc.		1,287		83,513
American Tower Corp., Class A *		18,876		1,018,549
AT&T, Inc.		276,078		7,835,094
Atlantic Tele-Network, Inc.		12		468
CenturyLink, Inc.		14,157		582,985
Clearwire Corp., Class A *(a)		104		523
Crown Castle International Corp. *		11,583		488,223
Frontier Communications Corp.		46,505		394,827
Global Crossing Ltd. *		5,577		87,838
Leap Wireless International, Inc. *		5,148		62,909
Level 3 Communications, Inc. *		84,942		118,919
MetroPCS Communications, Inc. *		11,583		166,795
NII Holdings, Inc. *		8,151		333,865
Qwest Communications International, Inc.		66,066		450,570
SBA Communications Corp., Class A *		5,577		234,736
Sprint Nextel Corp. *		140,792		615,261
Telephone & Data Systems, Inc.		4,290		144,359
tw telecom, Inc. *		7,293		135,650
United States Cellular Corp. *		1,716		85,766
Verizon Communications, Inc.		130,934		4,834,083
Windstream Corp.		22,737		285,122

				17,960,055

Transportation 1.9%
Alaska Air Group, Inc. *		2,574		153,024
Alexander & Baldwin, Inc.		2,145		89,961
Allegiant Travel Co.		858		35,410
AMERCO *		858		82,874
AMR Corp. *		16,302		109,875
Arkansas Best Corp.		1,287		30,528
Atlas Air Worldwide Holdings, Inc. *		1,287		87,876
Avis Budget Group, Inc. *		4,562		69,890
C.H. Robinson Worldwide, Inc.		7,722		558,996
Con-way, Inc.		2,145		69,841
CSX Corp.		17,259		1,288,557
Delta Air Lines, Inc. *		37,752		424,332
Dollar Thrifty Automotive Group, Inc. *		1,287		68,353
Expeditors International of Washington, Inc.		9,867		471,643
FedEx Corp.		13,728		1,235,795
Genesee & Wyoming, Inc., Class A *		2,145		111,733
Hertz Global Holdings, Inc. *		9,438		143,552
Hub Group, Inc., Class A *		2,574		89,987
J.B. Hunt Transport Services, Inc.		4,290		178,507
JetBlue Airways Corp. *		13,299		75,804
Kansas City Southern *		5,587		300,804
Kirby Corp. *		2,574		142,445
Landstar System, Inc.		2,574		114,466
Norfolk Southern Corp.		17,160		1,125,353
Old Dominion Freight Line, Inc. *		1,309		40,291
Ryder System, Inc.		2,574		123,114
SkyWest, Inc.		4,719		77,864
Southwest Airlines Co.		35,178		416,156
Union Pacific Corp.		23,595		2,251,199
United Continental Holdings, Inc. *		15,084		362,619
United Parcel Service, Inc., Class B		33,033		2,437,835
US Airways Group, Inc. *		7,378		63,525
UTI Worldwide, Inc.		5,148		102,445
Werner Enterprises, Inc.		3,432		80,824

				13,015,478

Utilities 3.3%
AGL Resources, Inc.		3,432		130,450
ALLETE, Inc.		2,145		81,081

32 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Alliant Energy Corp.		5,148		202,728
Ameren Corp.		10,897		304,680
American Electric Power Co., Inc.		22,308		798,180
American Water Works Co., Inc.		8,154		226,192
Aqua America, Inc.		6,435		144,916
Atmos Energy Corp.		4,290		145,088
Avista Corp.		3,432		76,602
Black Hills Corp.		1,740		53,627
California Water Service Group		1,716		60,540
Calpine Corp. *		17,589		266,122
CenterPoint Energy, Inc.		18,447		292,569
Cleco Corp.		2,574		83,269
CMS Energy Corp.		10,296		198,301
Consolidated Edison, Inc.		13,299		664,684
Constellation Energy Group, Inc.		8,580		266,581
Dominion Resources, Inc.		27,885		1,272,393
DPL, Inc.		5,148		133,951
DTE Energy Co.		7,722		363,552
Duke Energy Corp.		60,489		1,088,197
Edison International		13,728		509,583
El Paso Electric Co. *		1,417		39,818
Energen Corp.		3,432		209,695
Entergy Corp.		9,009		641,441
EQT Corp.		7,293		359,545
Exelon Corp.		31,317		1,307,798
FirstEnergy Corp.		19,307		739,458
GenOn Energy, Inc. *		36,568		148,100
Great Plains Energy, Inc.		6,006		115,315
Hawaiian Electric Industries, Inc.		4,290		103,603
IDACORP, Inc.		2,574		97,143
Integrys Energy Group, Inc.		3,432		168,065
ITC Holdings Corp.		2,145		147,040
MDU Resources Group, Inc.		7,722		165,791
MGE Energy, Inc.		1,716		70,305
National Fuel Gas Co.		3,003		218,919
New Jersey Resources Corp.		2,145		89,725
NextEra Energy, Inc.		19,329		1,072,180
Nicor, Inc.		2,145		113,127
NiSource, Inc.		12,870		246,589
Northeast Utilities		8,151		277,460
Northwest Natural Gas Co.		1,716		80,652
NRG Energy, Inc. *		12,441		248,696
NSTAR		4,719		213,063
NV Energy, Inc.		10,725		157,550
OGE Energy Corp.		4,290		206,349
ONEOK, Inc.		4,719		304,706
Ormat Technologies, Inc.		1,716		42,986
Pepco Holdings, Inc.		10,296		192,844
PG&E Corp.		18,447		849,669
Piedmont Natural Gas Co., Inc.		3,003		87,988
Pinnacle West Capital Corp.		4,719		199,283
PNM Resources, Inc.		5,577		74,230
Portland General Electric Co.		3,432		80,377
PPL Corp.		22,737		578,202
Progress Energy, Inc.		13,728		627,507
Public Service Enterprise Group, Inc.		24,024		785,585
Questar Corp.		7,722		137,992
SCANA Corp.		5,148		208,391
Sempra Energy		10,725		570,892
South Jersey Industries, Inc.		1,716		94,140
Southern Co.		37,752		1,438,729
Southwest Gas Corp.		2,502		97,253
TECO Energy, Inc.		9,009		163,153
The AES Corp. *		37,051		458,321
The Empire District Electric Co.		3,432		74,234
UGI Corp.		5,148		164,170
UIL Holdings Corp.		1,716		52,750
Vectren Corp.		3,861		101,621
Westar Energy, Inc.		5,148		133,848
WGL Holdings, Inc.		2,145		81,510
Wisconsin Energy Corp.		5,577		330,158
Xcel Energy, Inc.		21,021		503,243

				23,034,495

Total Common Stock
(Cost $613,341,395)				688,045,405




Other Investment Company 0.0% of net assets

Money Fund 0.0%
State Street Institutional Liquid Reserves Fund - Institutional Class		251,622		251,622

Total Other Investment Company
(Cost $251,622)				251,622




Corporate Bond 0.0% of net assets

Diversified Financials 0.0%
GAMCO Investors, Inc. 0.0%, 12/31/15		2,000		1,287

Total Corporate Bond
(Cost $2,061)				1,287



End of Investments



Collateral Invested for Securities on Loan 0.2% of net assets


State Street Navigator Securities Lending Prime Portfolio		1,690,839		1,690,839

Total Collateral Invested for Securities on Loan
(Cost $1,690,839)				1,690,839



End of Collateral Invested for Securities on Loan

At 2/28/11, the tax basis cost of the fund’s investments was $613,611,256 and the unrealized appreciation and depreciation were $80,871,182 and ($6,184,124), respectively, with a net unrealized appreciation of $74,687,058.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Issuer is affiliated with the fund’s adviser.

See financial notes 33

Schwab U.S. Broad Market ETF

Statement of

Assets and Liabilities

As of February 28, 2011 (unaudited)



Assets

Investments, at value including securities on loan of $1,651,217 (cost $613,595,078)		$688,298,314
Collateral invested for securities on loan		1,690,839
Receivables:
Investments sold		28,826
Fund shares sold		6,429,412
Dividends		1,198,369
Income from securities on loan		2,359
Foreign tax reclaims		941
Interest	+	85

Total assets		697,649,145

Liabilities

Collateral held for securities on loan		1,690,839
Payables:
Investments bought		6,400,322
Investment adviser fees	+	3,384

Total liabilities		8,094,545

Net Assets

Total assets		697,649,145
Total liabilities	−	8,094,545

Net assets		$689,554,600

Net Assets by Source
Capital received from investors		610,135,310
Net investment income not yet distributed		1,936,176
Net realized capital gains		2,764,422
Net unrealized capital gains		74,718,692

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$689,554,600

21,450,001

$32.15

34 See financial notes

Schwab U.S. Broad Market ETF

Statement of

Operations

For September 1, 2010 through February 28, 2011 (unaudited)



Investment Income

Dividends (including $4,173 from affiliated issuer and net of foreign withholding tax of $1,156)		$4,440,108
Interest		745
Securities on loan	+	2,359

Total investment income		4,443,212

Expenses

Investment adviser fees		134,131

Total expenses	−	134,131

Net investment income		4,309,081

Realized and Unrealized Gains (Losses)

Net realized losses on investments (including $3,208 gain from affiliated issuer)		(154,469	)
Net realized gains on in-kind redemptions	+	3,067,764

Net realized gains		2,913,295
Net unrealized gains on investments	+	95,105,958

Net realized and unrealized gains		98,019,253

Net increase in net assets resulting from operations		$102,328,334

See financial notes 35

Schwab U.S. Broad Market ETF

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.



Operations


9/1/10-2/28/11				*10/30/09-8/31/10**
Net investment income		$4,309,081			$2,796,989
Net realized gains		2,913,295			1,714,081
Net unrealized gains (losses)	+	95,105,958			(20,387,266	)

Net increase (decrease) in net assets resulting from operations		102,328,334			(15,876,196	)

Distributions to Shareholders

Distributions from net investment income		($3,338,530	)		($1,831,500	)

Transactions in Fund Shares

9/1/10-2/28/11

10/30/09*-8/31/10

SHARES

VALUE

SHARES

VALUE

Shares Sold

11,200,000

$336,060,704

12,050,001

$320,803,907

Shares Redeemed

(600,000

)

(17,986,289

)

(1,200,000

)

(30,605,830

)

Net transactions in fund shares

10,600,000

$318,074,415

10,850,001

$290,198,077

Shares Outstanding and Net Assets

9/1/10-2/28/11

10/30/09*-8/31/10

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

10,850,001

$272,490,381

—

$—

Total increase

10,600,000

417,064,219

10,850,001

272,490,381

End of period

21,450,001

$689,554,600

10,850,001

$272,490,381

Net investment income not yet distributed

$1,936,176

$965,625


*		Commencement of operations.

36 See financial notes

Schwab U.S. Large-Cap ETF™

Financial Statements

Financial Highlights


	9/1/10–			10/30/09¹–
	2/28/11*			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		24.98			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.26			0.34
Net realized and unrealized gains (losses)		6.71			(0.12	)

Total from investment operations		6.97			0.22
Less distributions:
Distributions from net investment income		(0.27	)		(0.24	)

Net asset value at end of period		31.68			24.98

Total return (%)		28.03	²		0.83	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.08	³		0.08	³
Gross operating expenses		0.08	³		0.08	³
Net investment income (loss)		1.93	³		2.01	³
Portfolio turnover rate⁴		3	²		3	²
Net assets, end of period ($ x 1,000)		486,219			273,503

* 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 37

Schwab U.S. Large-Cap ETF

Portfolio Holdings as of February 28, 2011 (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		432,377,245		485,299,314
		—%	Other Investment Company		157,893		157,893


	99	.8%	Total Investments		432,535,138		485,457,207
	0	.2%	Collateral Invested for Securities on Loan		839,035		839,035
		—%	Other Assets and Liabilities, Net				(76,955	)


	100	.0%	Net Assets				486,219,287


	Number		Value
Security	of Shares		($)

Common Stock 99.8% of net assets

Automobiles & Components 1.0%
BorgWarner, Inc. *		4,302		333,878
Ford Motor Co. *		124,518		1,873,996
General Motors Co. *		20,423		684,783
Harley-Davidson, Inc.		8,657		353,379
Johnson Controls, Inc.		24,698		1,007,678
Lear Corp. *		1,842		194,884
The Goodyear Tire & Rubber Co. *		8,923		126,528
TRW Automotive Holdings Corp. *		3,732		211,978
Visteon Corp. *		1,860		137,547

				4,924,651

Banks 2.9%
BB&T Corp.		25,827		712,825
BOK Financial Corp.		947		48,629
Capitol Federal Financial, Inc.		6,098		77,079
City National Corp.		1,844		108,630
Comerica, Inc.		6,577		255,845
Commerce Bancshares, Inc.		2,803		112,569
Cullen/Frost Bankers, Inc.		2,149		125,845
Fifth Third Bancorp		33,167		484,238
First Horizon National Corp. *		8,734		100,441
First Republic Bank *		432		12,636
Hudson City Bancorp, Inc.		18,466		212,359
Huntington Bancshares, Inc.		31,561		215,877
KeyCorp		32,849		300,240
M&T Bank Corp.		3,991		351,408
Marshall & Ilsley Corp.		19,648		152,665
New York Community Bancorp, Inc.		16,393		305,893
People’s United Financial, Inc.		14,125		186,168
PNC Financial Services Group, Inc.		19,659		1,212,960
Regions Financial Corp.		43,774		334,433
SunTrust Banks, Inc.		18,549		559,623
TFS Financial Corp.		782		8,117
U.S. Bancorp		70,092		1,943,651
Wells Fargo & Co.		183,511		5,920,065
Zions Bancorp		6,325		147,752

				13,889,948

Capital Goods 8.4%
3M Co.		24,257		2,237,223
Aecom Technology Corp. *		3,730		106,827
AGCO Corp. *		3,377		184,992
Alliant Techsystems, Inc. *		1,228		88,625
AMETEK, Inc.		5,970		250,442
Bucyrus International, Inc.		2,763		251,599
Caterpillar, Inc.		21,193		2,181,395
Cooper Industries plc		6,144		395,366
Cummins, Inc.		6,764		683,976
Danaher Corp.		18,816		952,090
Deere & Co.		15,661		1,411,839
Donaldson Co., Inc.		2,615		147,225
Dover Corp.		6,836		439,213
Eaton Corp.		6,140		680,189
Emerson Electric Co.		28,248		1,685,276
Fastenal Co.		5,053		313,943
First Solar, Inc. *(a)		1,881		277,241
Flowserve Corp.		2,149		268,561
Fluor Corp.		6,758		478,196
Foster Wheeler AG *		4,374		158,164
General Dynamics Corp.		11,446		871,270
General Electric Co.		391,989		8,200,410
Goodrich Corp.		4,605		397,089
Honeywell International, Inc.		26,262		1,520,832
Hubbell, Inc., Class B		2,149		145,079
Illinois Tool Works, Inc.		15,964		863,652
Ingersoll-Rand plc		11,977		542,558
ITT Corp.		6,862		397,516
Jacobs Engineering Group, Inc. *		4,609		230,727
Joy Global, Inc.		3,772		367,317
KBR, Inc.		4,878		159,998
L-3 Communications Holdings, Inc.		4,177		331,194
Lincoln Electric Holdings, Inc.		1,535		109,568
Lockheed Martin Corp.		10,438		826,272
Masco Corp.		13,516		183,682
McDermott International, Inc. *		8,600		197,370
MSC Industrial Direct Co., Class A		1,630		103,000
Navistar International Corp. *		1,889		117,080
Northrop Grumman Corp.		9,946		663,199
Oshkosh Corp. *		3,377		120,458
Owens Corning, Inc. *		4,298		153,568
PACCAR, Inc.		13,510		677,256
Pall Corp.		4,298		233,639
Parker Hannifin Corp.		5,942		529,908
Pentair, Inc.		3,731		138,345
Precision Castparts Corp.		5,267		746,597
Quanta Services, Inc. *		7,722		176,139
Raytheon Co.		13,254		678,737
Rockwell Automation, Inc.		5,266		461,986
Rockwell Collins, Inc.		5,918		381,356
Roper Industries, Inc.		3,461		291,174
Spirit AeroSystems Holdings, Inc., Class A *		3,731		96,969

38 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
SPX Corp.		1,846		147,237
Textron, Inc.		10,134		274,530
The Babcock & Wilcox Co. *		4,300		145,211
The Boeing Co.		24,564		1,768,854
The Shaw Group, Inc. *		3,074		122,099
The Timken Co.		2,819		137,342
Tyco International Ltd.		18,269		828,316
United Technologies Corp.		31,940		2,668,268
URS Corp. *		3,070		142,847
W.W. Grainger, Inc.		2,149		286,268

				40,627,299

Commercial & Professional Services 0.7%
Avery Dennison Corp.		3,808		152,015
Cintas Corp.		4,912		138,125
Copart, Inc. *		2,810		118,048
Corrections Corp. of America *		4,345		107,930
Covanta Holding Corp.		4,912		83,111
Equifax, Inc.		4,934		176,390
IHS, Inc., Class A *		1,844		154,343
Iron Mountain, Inc.		6,783		176,358
Manpower, Inc.		3,072		195,072
Nielsen Holdings N.V. *		2,472		65,730
Pitney Bowes, Inc.		7,723		194,465
R.R. Donnelley & Sons Co.		7,722		143,784
Republic Services, Inc.		11,479		339,893
Robert Half International, Inc.		5,592		178,385
Stericycle, Inc. *		3,148		272,050
The Dun & Bradstreet Corp.		1,846		149,157
Towers Watson & Co., Class A		1,891		111,191
Verisk Analytics, Inc., Class A *		3,996		129,271
Waste Connections, Inc.		4,193		121,555
Waste Management, Inc.		16,428		608,822

				3,615,695

Consumer Durables & Apparel 1.1%
Coach, Inc.		10,766		591,269
D.R. Horton, Inc.		10,131		119,951
Fortune Brands, Inc.		5,639		348,829
Garmin Ltd. (a)		4,306		146,189
Harman International Industries, Inc. *		2,606		126,756
Hasbro, Inc.		4,634		208,067
Leggett & Platt, Inc.		5,530		127,522
Lennar Corp., Class A		5,833		117,593
Mattel, Inc.		13,508		338,510
Mohawk Industries, Inc. *		1,906		110,758
Newell Rubbermaid, Inc.		10,545		203,940
NIKE, Inc., Class B		11,062		984,850
NVR, Inc. *		186		135,382
Phillips-Van Heusen Corp.		2,223		133,402
Polo Ralph Lauren Corp.		2,458		311,453
Pulte Group, Inc. *		12,280		84,732
Stanley Black & Decker, Inc.		5,916		448,610
Toll Brothers, Inc. *		4,916		104,514
VF Corp.		3,379		323,269
Whirlpool Corp.		2,799		230,917

				5,196,513

Consumer Services 2.0%
Apollo Group, Inc., Class A *		4,605		208,422
Carnival Corp.		14,784		630,833
Chipotle Mexican Grill, Inc. *		1,233		302,085
Darden Restaurants, Inc.		5,219		245,971
DeVry, Inc.		2,251		122,117
H&R Block, Inc.		10,613		161,211
Hyatt Hotels Corp., Class A *		1,535		70,226
International Game Technology		11,052		181,916
Las Vegas Sands Corp. *		16,279		759,253
Marriott International, Inc., Class A		11,413		447,504
McDonald’s Corp.		39,328		2,976,343
MGM Resorts International *		11,713		163,279
Penn National Gaming, Inc. *		2,641		94,469
Royal Caribbean Cruises Ltd. *		4,916		215,272
Starbucks Corp.		27,685		913,051
Starwood Hotels & Resorts Worldwide, Inc.		6,552		400,327
Strayer Education, Inc. (a)		614		84,388
Weight Watchers International, Inc.		1,228		75,068
Wyndham Worldwide Corp.		6,494		203,132
Wynn Resorts Ltd.		3,377		415,135
Yum! Brands, Inc.		17,363		873,880

				9,543,882

Diversified Financials 7.1%
Affiliated Managers Group, Inc. *		1,901		202,932
American Express Co.		38,854		1,692,869
Ameriprise Financial, Inc.		9,521		602,870
Bank of America Corp.		363,995		5,201,488
Bank of New York Mellon Corp.		44,476		1,351,626
BlackRock, Inc.		3,686		751,907
Capital One Financial Corp.		16,992		845,692
CBOE Holdings, Inc.		682		20,180
CIT Group, Inc. *		6,567		284,482
Citigroup, Inc. *		1,067,349		4,995,193
CME Group, Inc.		2,465		767,305
Discover Financial Services		20,573		447,463
ETRADE Financial Corp.		7,468		119,339
Eaton Vance Corp.		4,298		134,527
Federated Investors, Inc., Class B (a)		3,731		102,826
Franklin Resources, Inc.		5,527		694,302
IntercontinentalExchange, Inc. *		2,763		354,216
Invesco Ltd.		17,258		463,205
Jefferies Group, Inc.		4,038		97,154
JPMorgan Chase & Co.		143,949		6,720,979
Legg Mason, Inc.		4,816		174,580
Leucadia National Corp.		7,368		244,102
LPL Investment Holdings, Inc. *		482		16,200
Moody’s Corp.		7,524		240,016
Morgan Stanley		50,801		1,507,774
MSCI, Inc., Class A *		4,326		153,573
Northern Trust Corp.		9,001		464,181
NYSE Euronext		9,564		353,868
Raymond James Financial, Inc.		3,731		142,972
SEI Investments Co.		5,880		135,299
SLM Corp. *		17,853		264,581
State Street Corp.		18,467		825,844
T. Rowe Price Group, Inc.		9,566		640,731
TD Ameritrade Holding Corp.		8,950		195,110

See financial notes 39

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
The Charles Schwab Corp. (b)		35,612		675,560
The Goldman Sachs Group, Inc.		15,964		2,614,584
The NASDAQ OMX Group, Inc. *		6,187		177,010

				34,676,540

Energy 12.7%
Alpha Natural Resources, Inc. *		4,435		240,466
Anadarko Petroleum Corp.		18,117		1,482,514
Apache Corp.		13,513		1,683,990
Arch Coal, Inc.		6,140		205,874
Baker Hughes, Inc.		15,786		1,121,595
Cabot Oil & Gas Corp.		3,819		174,376
Cameron International Corp. *		8,970		530,396
Chesapeake Energy Corp.		24,253		863,649
Chevron Corp.		73,991		7,676,566
Cimarex Energy Co.		3,136		364,184
Cobalt International Energy, Inc. *		3,646		57,096
Concho Resources, Inc. *		3,450		367,494
ConocoPhillips		51,271		3,992,473
CONSOL Energy, Inc.		8,378		424,848
Continental Resources, Inc. *		1,014		70,503
Denbury Resources, Inc. *		14,835		359,452
Devon Energy Corp.		15,075		1,378,458
Diamond Offshore Drilling, Inc.		2,456		192,133
El Paso Corp.		26,402		491,077
EOG Resources, Inc.		9,210		1,034,375
EXCO Resources, Inc.		6,451		132,052
Exxon Mobil Corp.		186,052		15,913,028
FMC Technologies, Inc. *		4,300		404,415
Forest Oil Corp. *		4,114		146,006
Halliburton Co.		33,467		1,570,941
Helmerich & Payne, Inc.		3,529		229,350
Hess Corp.		10,555		918,602
Kinder Morgan, Inc. *		3,708		113,094
Marathon Oil Corp.		26,402		1,309,539
Massey Energy Co.		3,779		239,324
Murphy Oil Corp.		7,065		519,490
Nabors Industries Ltd. *		10,749		306,024
National-Oilwell Varco, Inc.		15,395		1,224,980
Newfield Exploration Co. *		4,916		357,836
Noble Corp.		9,521		425,684
Noble Energy, Inc.		6,451		597,750
Occidental Petroleum Corp.		29,818		3,040,542
Oceaneering International, Inc. *		1,975		165,169
Patterson-UTI Energy, Inc.		5,833		159,474
Peabody Energy Corp.		9,950		651,626
Petrohawk Energy Corp. *		11,367		245,527
Pioneer Natural Resources Co.		3,399		347,854
Plains Exploration & Production Co. *		5,266		206,269
Pride International, Inc. *		5,837		242,294
QEP Resources, Inc.		6,548		258,973
Quicksilver Resources, Inc. *		4,605		71,331
Range Resources Corp.		5,936		322,325
Rowan Cos., Inc. *		4,308		183,822
Schlumberger Ltd.		50,358		4,704,444
Southern Union Co.		4,325		123,349
Southwestern Energy Co. *		12,902		509,371
Spectra Energy Corp.		24,338		651,042
Sunoco, Inc.		4,444		186,026
The Williams Cos., Inc.		21,494		652,558
Tidewater, Inc.		1,683		104,699
Ultra Petroleum Corp. *		5,627		255,184
Valero Energy Corp.		20,922		589,582
Weatherford International Ltd. *		27,399		662,508
Whiting Petroleum Corp. *		4,298		280,831

				61,734,434

Food & Staples Retailing 2.1%
Costco Wholesale Corp.		15,813		1,182,654
CVS Caremark Corp.		50,115		1,656,802
Safeway, Inc.		12,748		278,161
SUPERVALU, Inc.		8,029		69,290
Sysco Corp.		21,924		609,268
The Kroger Co.		21,600		494,640
Wal-Mart Stores, Inc.		74,412		3,867,936
Walgreen Co.		35,561		1,541,214
Whole Foods Market, Inc.		5,053		295,904

				9,995,869

Food, Beverage & Tobacco 5.1%
Altria Group, Inc.		76,331		1,936,517
Archer-Daniels-Midland Co.		21,944		815,878
Brown-Forman Corp., Class B		4,075		281,786
Bunge Ltd.		5,320		383,944
Campbell Soup Co.		7,986		268,809
Coca-Cola Enterprises, Inc.		12,123		318,835
ConAgra Foods, Inc.		16,625		385,035
Constellation Brands, Inc., Class A *		7,368		149,718
Dr. Pepper Snapple Group, Inc.		9,073		327,172
Flowers Foods, Inc.		3,432		91,291
General Mills, Inc.		22,590		838,993
Green Mountain Coffee Roasters, Inc. *		4,300		175,354
H.J. Heinz Co.		11,706		587,875
Hansen Natural Corp. *		2,517		144,853
Hormel Foods Corp.		5,218		142,973
Kellogg Co.		9,214		493,502
Kraft Foods, Inc., Class A		58,808		1,872,447
Lorillard, Inc.		5,376		412,716
McCormick & Co., Inc.		4,423		210,756
Molson Coors Brewing Co., Class B		5,833		266,743
PepsiCo, Inc.		58,703		3,722,944
Philip Morris International, Inc.		67,617		4,244,995
Ralcorp Holdings, Inc. *		1,949		126,393
Reynolds American, Inc.		12,468		427,902
Sara Lee Corp.		21,130		361,746
Smithfield Foods, Inc. *		5,572		128,992
The Coca-Cola Co.		78,288		5,004,169
The Hershey Co.		6,144		321,454
The J.M. Smucker Co.		4,389		302,139
Tyson Foods, Inc., Class A		10,711		199,546

				24,945,477

Health Care Equipment & Services 4.1%
Aetna, Inc.		15,371		574,261
Alere, Inc. *		3,110		120,170
AmerisourceBergen Corp.		10,485		397,486
Baxter International, Inc.		21,558		1,145,808
Beckman Coulter, Inc.		2,503		208,074
Becton, Dickinson & Co.		8,291		663,280

40 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Boston Scientific Corp. *		56,250		402,750
C.R. Bard, Inc.		3,686		360,343
Cardinal Health, Inc.		12,510		520,916
CareFusion Corp. *		8,131		222,139
Cerner Corp. *		2,540		255,143
CIGNA Corp.		10,274		432,227
Community Health Systems, Inc. *		3,512		143,535
Coventry Health Care, Inc. *		5,530		167,006
Covidien plc		18,556		954,706
DaVita, Inc. *		3,768		299,066
DENTSPLY International, Inc.		5,526		206,507
Edwards Lifesciences Corp. *		4,116		350,025
Express Scripts, Inc. *		18,273		1,027,308
Gen-Probe, Inc. *		1,842		115,825
Henry Schein, Inc. *		3,377		232,946
Hologic, Inc. *		9,564		193,002
Hospira, Inc. *		6,140		324,499
Humana, Inc. *		6,447		419,120
IDEXX Laboratories, Inc. *		2,149		166,977
Intuitive Surgical, Inc. *		1,540		505,043
Kinetic Concepts, Inc. *		2,316		113,415
Laboratory Corp. of America Holdings *		3,993		359,889
Lincare Holdings, Inc.		3,684		108,089
McKesson Corp.		9,577		759,265
Medco Health Solutions, Inc. *		15,968		984,268
Medtronic, Inc.		39,603		1,580,952
Omnicare, Inc.		4,345		124,397
Patterson Cos., Inc.		3,848		128,446
Quest Diagnostics, Inc.		5,223		296,405
ResMed, Inc. *		5,680		179,488
St. Jude Medical, Inc. *		12,614		603,958
Stryker Corp.		11,367		719,076
Teleflex, Inc.		1,387		80,987
UnitedHealth Group, Inc.		41,505		1,767,283
Universal Health Services, Inc., Class B		3,381		154,546
Varian Medical Systems, Inc. *		4,605		319,034
WellPoint, Inc. *		14,757		980,898
Zimmer Holdings, Inc. *		7,504		467,799

				20,136,357

Household & Personal Products 2.3%
Alberto-Culver Co.		3,116		116,040
Avon Products, Inc.		15,784		438,953
Church & Dwight Co., Inc.		2,558		192,975
Colgate-Palmolive Co.		18,117		1,422,547
Energizer Holdings, Inc. *		2,546		170,149
Herbalife Ltd.		2,205		172,894
Kimberly-Clark Corp.		15,069		993,047
Mead Johnson Nutrition Co.		7,675		459,349
The Clorox Co.		5,219		353,639
The Estee Lauder Cos., Inc., Class A		4,426		417,859
The Procter & Gamble Co.		103,072		6,498,690

				11,236,142

Insurance 4.2%
ACE Ltd.		12,589		796,254
Aflac, Inc.		16,921		995,970
Alleghany Corp. *		307		104,610
Allied World Assurance Co. Holdings Ltd.		1,582		97,625
American Financial Group, Inc.		3,102		107,422
American International Group, Inc. *(a)		4,431		164,213
American National Insurance Co.		616		50,062
Aon Corp.		11,106		584,620
Arch Capital Group Ltd. *		1,922		173,941
Assurant, Inc.		4,092		166,258
Assured Guaranty Ltd.		6,233		90,565
Axis Capital Holdings Ltd.		4,693		170,450
Berkshire Hathaway, Inc., Class B *		70,382		6,142,941
Brown & Brown, Inc.		4,345		113,578
Cincinnati Financial Corp.		5,573		189,761
CNA Financial Corp. *		1,715		50,490
Everest Re Group Ltd.		1,842		163,293
Fidelity National Financial, Inc., Class A		8,643		119,706
Genworth Financial, Inc., Class A *		18,125		239,794
Hanover Insurance Group, Inc.		1,611		74,863
HCC Insurance Holdings, Inc.		4,316		134,400
Lincoln National Corp.		11,389		361,259
Loews Corp.		12,667		547,848
Markel Corp. *		341		141,737
Marsh & McLennan Cos., Inc.		20,115		612,301
MetLife, Inc.		25,592		1,212,037
Old Republic International Corp.		8,953		111,913
PartnerRe Ltd.		2,456		194,761
Principal Financial Group, Inc.		11,363		389,296
Prudential Financial, Inc.		17,869		1,176,316
Reinsurance Group of America, Inc.		2,617		158,041
RenaissanceRe Holdings Ltd.		2,162		144,897
The Allstate Corp.		18,817		598,004
The Chubb Corp.		10,907		661,837
The Hartford Financial Services Group, Inc.		16,457		487,127
The Progressive Corp.		23,074		480,631
The Travelers Cos., Inc.		16,674		999,273
Torchmark Corp.		3,070		200,318
Transatlantic Holdings, Inc.		2,283		116,273
Unum Group		12,327		327,035
Validus Holdings Ltd.		3,238		100,216
W.R. Berkley Corp.		4,921		147,384
Wesco Financial Corp.		94		36,769
White Mountains Insurance Group Ltd.		307		116,583
XL Group plc		12,634		295,004

				20,347,676

Materials 4.1%
Air Products & Chemicals, Inc.		7,372		678,224
Airgas, Inc.		2,550		159,579
Albemarle Corp.		3,494		201,115
Alcoa, Inc.		38,088		641,783
Allegheny Technologies, Inc.		3,439		230,688
AptarGroup, Inc.		2,215		106,697
Ashland, Inc.		2,553		143,734
Ball Corp.		6,852		247,357
Bemis Co., Inc.		3,991		131,104
Celanese Corp., Series A		5,843		242,192
CF Industries Holdings, Inc.		2,773		391,769
Cliffs Natural Resources, Inc.		5,005		485,835

See financial notes 41

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Crown Holdings, Inc. *		5,880		226,262
E.I. du Pont de Nemours & Co.		33,231		1,823,385
Eastman Chemical Co.		2,537		236,981
Ecolab, Inc.		8,678		422,098
FMC Corp.		2,763		213,967
Freeport-McMoRan Copper & Gold, Inc.		35,018		1,854,203
Huntsman Corp.		7,131		125,862
International Flavors & Fragrances, Inc.		2,845		162,023
International Paper Co.		15,079		418,895
LyondellBasell Industries N.V., Class A *		12,367		470,935
Martin Marietta Materials, Inc.		1,632		145,020
MeadWestvaco Corp.		6,284		184,435
Monsanto Co.		19,648		1,412,495
Nalco Holding Co.		4,742		121,253
Newmont Mining Corp.		17,383		960,758
Nucor Corp.		10,745		515,330
Owens-Illinois, Inc. *		6,140		187,209
PPG Industries, Inc.		6,171		545,393
Praxair, Inc.		11,668		1,159,566
Reliance Steel & Aluminum Co.		2,456		135,890
Sealed Air Corp.		6,187		170,266
Sigma-Aldrich Corp.		3,780		241,504
Smurfit-Stone Container Corp. *		3,323		127,736
Sonoco Products Co.		3,684		132,919
Southern Copper Corp.		7,982		337,798
Steel Dynamics, Inc.		7,982		147,348
The Dow Chemical Co.		42,060		1,562,950
The Lubrizol Corp.		2,515		273,808
The Mosaic Co.		5,530		474,750
The Scotts Miracle-Gro Co., Class A		1,651		92,737
The Valspar Corp.		3,377		128,394
Titanium Metals Corp. *		3,110		59,059
United States Steel Corp.		5,330		306,422
Vulcan Materials Co.		4,302		197,247
Walter Energy, Inc.		1,913		231,492
Weyerhaeuser Co.		18,727		457,126

				19,923,593

Media 3.4%
Cablevision Systems Corp., Class A		8,912		328,407
CBS Corp., Class B		23,722		566,007
Charter Communications, Inc., Class A *		1,842		84,308
Clear Channel Outdoor Holdings, Inc., Class A *		1,364		20,105
Comcast Corp., Class A		103,588		2,668,427
DIRECTV, Class A *		30,707		1,411,601
Discovery Communications, Inc., Series A *		10,438		449,982
DISH Network Corp., Class A *		7,982		185,582
DreamWorks Animation SKG, Inc., Class A *		2,208		60,985
Gannett Co., Inc.		8,903		146,989
John Wiley & Sons, Inc., Class A		1,842		88,066
Liberty Global, Inc., Series A *		8,046		338,737
Liberty Media - Starz, Series A *		1,941		136,258
Liberty Media Corp. - Capital, Series A *		2,519		182,779
News Corp., Class A		84,297		1,464,239
Omnicom Group, Inc.		11,095		564,735
Scripps Networks Interactive, Class A		3,070		159,456
Sirius XM Radio, Inc. *		143,983		260,609
The Interpublic Group of Cos., Inc. *		18,156		239,659
The McGraw-Hill Cos., Inc.		11,666		451,241
The Walt Disney Co.		65,589		2,868,863
The Washington Post Co., Class B (a)		312		135,124
Time Warner Cable, Inc.		13,203		952,993
Time Warner, Inc.		41,504		1,585,453
Viacom, Inc., Class B		20,096		897,487
Virgin Media, Inc.		11,197		305,006

				16,553,098

Pharmaceuticals, Biotechnology & Life Sciences 6.7%
Abbott Laboratories		56,024		2,694,754
Alexion Pharmaceuticals, Inc. *		3,381		325,523
Allergan, Inc.		11,363		842,794
Amgen, Inc. *		34,905		1,791,674
Amylin Pharmaceuticals, Inc. *		5,029		76,944
Biogen Idec, Inc. *		8,366		572,234
Bristol-Myers Squibb Co.		62,989		1,625,746
Celgene Corp. *		16,636		883,372
Cephalon, Inc. *		2,848		160,371
Charles River Laboratories International, Inc. *		2,456		89,497
Covance, Inc. *		2,456		138,592
Dendreon Corp. *		5,298		177,960
Eli Lilly & Co.		35,765		1,236,038
Endo Pharmaceuticals Holdings, Inc. *		3,731		132,525
Forest Laboratories, Inc. *		10,179		329,800
Genzyme Corp. *		9,519		718,209
Gilead Sciences, Inc. *		30,332		1,182,341
Human Genome Sciences, Inc. *		6,939		173,683
Illumina, Inc. *		4,621		320,697
Johnson & Johnson		102,235		6,281,318
King Pharmaceuticals, Inc. *		9,120		129,869
Life Technologies Corp. *		6,754		360,461
Merck & Co., Inc.		113,463		3,695,490
Mettler-Toledo International, Inc. *		1,228		210,442
Mylan, Inc. *		15,871		362,970
PerkinElmer, Inc.		4,302		114,003
Perrigo Co.		3,070		234,640
Pfizer, Inc.		295,418		5,683,842
Pharmaceutical Product Development, Inc.		4,049		111,226
Talecris Biotherapeutics Holdings Corp. *		2,236		55,766
Techne Corp.		1,335		95,706
Thermo Fisher Scientific, Inc. *		15,143		845,282
United Therapeutics Corp. *		1,842		124,206
Vertex Pharmaceuticals, Inc. *		7,478		348,998
Warner Chilcott plc, Class A		4,183		99,054
Waters Corp. *		3,438		285,526
Watson Pharmaceuticals, Inc. *		5,223		292,436

				32,803,989

Real Estate 2.0%
AMB Property Corp.		6,224		226,429
Annaly Capital Management, Inc.		28,262		506,738

42 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
AvalonBay Communities, Inc.		3,070		371,562
Boston Properties, Inc.		5,219		500,607
Brookfield Properties Corp. (a)		9,564		167,657
CB Richard Ellis Group, Inc., Class A *		10,882		272,485
Digital Realty Trust, Inc. (a)		3,130		184,107
Equity Residential		10,521		579,812
Federal Realty Investment Trust		2,218		186,711
General Growth Properties, Inc. *		14,396		229,184
HCP, Inc.		13,512		513,456
Health Care REIT, Inc.		5,328		278,228
Host Hotels & Resorts, Inc.		24,580		452,272
Kimco Realty Corp.		15,086		292,367
Liberty Property Trust		4,298		145,144
Nationwide Health Properties, Inc.		4,970		212,418
Piedmont Office Realty Trust, Inc., Class A		4,866		97,320
Plum Creek Timber Co., Inc.		6,140		257,634
ProLogis		20,569		334,452
Public Storage		5,249		589,200
Rayonier, Inc.		2,781		170,559
Realty Income Corp.		4,002		143,952
Regency Centers Corp.		2,949		133,442
Simon Property Group, Inc.		10,807		1,189,202
SL Green Realty Corp.		2,822		213,710
The Macerich Co.		4,692		237,603
The St. Joe Co. *(a)		3,381		90,543
UDR, Inc.		5,929		144,193
Ventas, Inc.		5,833		323,265
Vornado Realty Trust		6,758		630,724

				9,674,976

Retailing 3.5%
Abercrombie & Fitch Co., Class A		3,120		178,994
Advance Auto Parts, Inc.		3,204		200,827
Amazon.com, Inc. *		12,896		2,234,748
American Eagle Outfitters, Inc.		6,754		103,674
AutoNation, Inc. *(a)		1,400		47,096
AutoZone, Inc. *		975		251,501
Bed Bath & Beyond, Inc. *		9,824		473,026
Best Buy Co., Inc.		11,744		378,626
CarMax, Inc. *		8,310		293,925
Dollar General Corp. *		1,236		34,917
Dollar Tree, Inc. *		4,771		240,077
Expedia, Inc.		7,675		152,425
Family Dollar Stores, Inc.		4,667		233,723
GameStop Corp., Class A *		5,647		112,658
Genuine Parts Co.		5,880		309,817
Guess?, Inc.		2,293		103,850
J.C. Penney Co., Inc.		7,675		268,318
Kohl’s Corp. *		10,745		579,048
Liberty Media Corp. - Interactive, Series A *		22,411		359,921
Limited Brands, Inc.		9,701		310,626
Lowe’s Cos., Inc.		50,810		1,329,698
Macy’s, Inc.		15,657		374,202
Netflix, Inc. *		1,628		336,459
Nordstrom, Inc.		6,287		284,550
O’Reilly Automotive, Inc. *		5,003		278,067
PetSmart, Inc.		4,377		178,888
Priceline.com, Inc. *		1,847		838,316
Ross Stores, Inc.		4,605		331,744
Sears Holdings Corp. *(a)		1,842		153,457
Staples, Inc.		27,399		583,599
Target Corp.		23,950		1,258,572
The Gap, Inc.		12,506		281,760
The Home Depot, Inc.		60,341		2,260,977
The Sherwin-Williams Co.		3,429		281,589
The TJX Cos., Inc.		14,363		716,283
Tiffany & Co.		4,722		290,639
Urban Outfitters, Inc. *		4,915		188,638

				16,835,235

Semiconductors & Semiconductor Equipment 2.5%
Advanced Micro Devices, Inc. *		20,888		192,379
Altera Corp.		11,361		475,571
Analog Devices, Inc.		11,071		441,512
Applied Materials, Inc.		50,083		822,864
Broadcom Corp., Class A		16,032		660,839
Cree, Inc. *		3,993		210,311
Intel Corp.		203,736		4,374,212
KLA-Tencor Corp.		6,177		301,561
Lam Research Corp. *		4,722		259,238
Linear Technology Corp.		7,675		265,248
LSI Corp. *		24,607		154,778
Marvell Technology Group Ltd. *		20,029		366,130
Maxim Integrated Products, Inc.		11,359		313,281
MEMC Electronic Materials, Inc. *		8,332		113,065
Microchip Technology, Inc.		6,754		249,290
Micron Technology, Inc. *		36,668		408,115
National Semiconductor Corp.		8,950		138,725
NVIDIA Corp. *		21,496		487,099
ON Semiconductor Corp. *		16,271		181,422
Texas Instruments, Inc.		44,077		1,569,582
Xilinx, Inc.		9,107		302,808

				12,288,030

Software & Services 7.1%
Accenture plc, Class A		23,029		1,185,533
Activision Blizzard, Inc.		20,198		224,602
Adobe Systems, Inc. *		18,371		633,799
Akamai Technologies, Inc. *		6,487		243,457
Alliance Data Systems Corp. *		1,935		152,362
ANSYS, Inc. *		3,102		174,705
AOL, Inc. *		4,001		83,501
Autodesk, Inc. *		8,629		362,849
Automatic Data Processing, Inc.		17,939		896,950
BMC Software, Inc. *		6,801		336,650
Broadridge Financial Solutions, Inc.		4,652		106,624
CA, Inc.		15,216		377,052
Citrix Systems, Inc. *		6,871		482,069
Cognizant Technology Solutions Corp., Class A *		11,145		856,716
Computer Sciences Corp.		5,616		270,298
CoreLogic, Inc.		3,687		68,763
DST Systems, Inc.		1,287		65,637
eBay, Inc. *		40,685		1,363,151
Electronic Arts, Inc. *		12,020		225,976
Equinix, Inc. *		1,634		141,243
FactSet Research Systems, Inc.		1,605		168,332
Fidelity National Information Services, Inc.		9,210		298,312

See financial notes 43

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Fiserv, Inc. *		5,617		355,388
Genpact Ltd. *		3,726		51,978
Global Payments, Inc.		3,070		147,329
Google, Inc., Class A *		8,598		5,274,013
IAC/InterActiveCorp *		2,940		91,346
Intuit, Inc. *		10,879		572,018
Lender Processing Services, Inc.		3,421		116,553
MasterCard, Inc., Class A		3,996		961,278
McAfee, Inc. *		6,175		296,091
Microsoft Corp.		280,233		7,448,593
Nuance Communications, Inc. *		9,069		169,228
Oracle Corp.		141,306		4,648,967
Paychex, Inc.		12,311		414,019
Red Hat, Inc. *		7,061		291,478
Rovi Corp. *		3,723		206,329
SAIC, Inc. *		14,227		232,469
Salesforce.com, Inc. *		4,318		571,142
Symantec Corp. *		28,446		512,881
Synopsys, Inc. *		5,606		155,398
Total System Services, Inc.		7,372		130,853
VeriSign, Inc.		5,756		203,129
Visa, Inc., Class A		18,420		1,345,581
VMware, Inc., Class A *		2,458		205,612
Western Union Co.		24,307		534,511
Yahoo!, Inc. *		46,454		761,846

				34,416,611

Technology Hardware & Equipment 8.7%
Agilent Technologies, Inc. *		12,963		545,483
Amphenol Corp., Class A		6,451		370,803
Apple, Inc. *		33,784		11,932,847
Arrow Electronics, Inc. *		4,445		174,244
Avnet, Inc. *		5,566		190,413
Brocade Communications Systems, Inc. *		16,617		105,850
Cisco Systems, Inc. *		204,117		3,788,411
Corning, Inc.		56,823		1,310,338
Dell, Inc. *		61,764		977,724
Dolby Laboratories, Inc., Class A *		1,916		96,892
EMC Corp. *		75,393		2,051,444
F5 Networks, Inc. *		3,072		362,527
FLIR Systems, Inc. *		5,837		188,535
Harris Corp.		4,778		222,941
Hewlett-Packard Co.		83,522		3,644,065
Ingram Micro, Inc., Class A *		6,140		122,370
International Business Machines Corp.		45,757		7,407,143
Itron, Inc. *		1,535		87,050
Jabil Circuit, Inc.		7,848		168,183
Juniper Networks, Inc. *		19,117		841,148
Molex, Inc.		4,920		137,416
Motorola Mobility Holdings, Inc. *		9,884		298,497
Motorola Solutions, Inc. *		11,282		435,936
NCR Corp. *		5,880		112,308
NetApp, Inc. *		13,512		698,030
QUALCOMM, Inc.		59,283		3,532,081
SanDisk Corp. *		8,596		426,362
Seagate Technology plc *		17,358		220,447
Tellabs, Inc.		13,576		73,175
Teradata Corp. *		6,200		296,484
Trimble Navigation Ltd. *		4,609		226,532
Tyco Electronics Ltd.		16,440		592,498
Western Digital Corp. *		8,636		264,089
Xerox Corp.		51,586		554,549

				42,456,815

Telecommunication Services 2.8%
American Tower Corp., Class A *		14,820		799,687
AT&T, Inc.		218,167		6,191,579
CenturyLink, Inc.		11,200		461,216
Clearwire Corp., Class A *(a)		1,364		6,861
Crown Castle International Corp. *		9,210		388,202
Frontier Communications Corp.		38,106		323,520
MetroPCS Communications, Inc. *		9,253		133,243
NII Holdings, Inc. *		6,272		256,901
Qwest Communications International, Inc.		51,922		354,108
SBA Communications Corp., Class A *		4,329		182,208
Sprint Nextel Corp. *		112,382		491,109
Telephone & Data Systems, Inc.		3,424		115,218
United States Cellular Corp. *		682		34,086
Verizon Communications, Inc.		104,394		3,854,227
Windstream Corp.		17,956		225,168

				13,817,333

Transportation 1.9%
AMR Corp. *		12,727		85,780
C.H. Robinson Worldwide, Inc.		6,140		444,475
CSX Corp.		14,128		1,054,797
Delta Air Lines, Inc. *		29,477		331,322
Expeditors International of Washington, Inc.		7,986		381,731
FedEx Corp.		10,821		974,106
Hertz Global Holdings, Inc. *		7,061		107,398
J.B. Hunt Transport Services, Inc.		3,424		142,473
Kansas City Southern *		3,754		202,115
Norfolk Southern Corp.		13,819		906,250
Ryder System, Inc.		1,876		89,729
Southwest Airlines Co.		27,676		327,407
Union Pacific Corp.		18,420		1,757,452
United Continental Holdings, Inc. *		11,687		280,955
United Parcel Service, Inc., Class B		26,099		1,926,106

				9,012,096

Utilities 3.4%
AGL Resources, Inc.		2,897		110,115
Alliant Energy Corp.		4,304		169,492
Ameren Corp.		8,907		249,040
American Electric Power Co., Inc.		17,853		638,780
American Water Works Co., Inc.		6,466		179,367
Aqua America, Inc.		4,959		111,677
Atmos Energy Corp.		3,377		114,210
Calpine Corp. *		13,209		199,852
CenterPoint Energy, Inc.		13,838		219,471
CMS Energy Corp.		8,643		166,464
Consolidated Edison, Inc.		10,441		521,841
Constellation Energy Group, Inc.		6,390		198,537
Dominion Resources, Inc.		21,549		983,281
DPL, Inc.		4,345		113,057

44 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
DTE Energy Co.		6,187		291,284
Duke Energy Corp.		48,607		874,440
Edison International		11,098		411,958
Energen Corp.		2,763		168,819
Entergy Corp.		6,754		480,885
EQT Corp.		5,322		262,375
Exelon Corp.		24,253		1,012,805
FirstEnergy Corp.		14,974		573,504
Integrys Energy Group, Inc.		2,872		140,642
ITC Holdings Corp.		1,842		126,269
MDU Resources Group, Inc.		6,494		139,426
National Fuel Gas Co.		2,554		186,187
NextEra Energy, Inc.		15,403		854,404
NiSource, Inc.		10,178		195,010
Northeast Utilities		6,494		221,056
NRG Energy, Inc. *		9,521		190,325
NSTAR		3,991		180,194
NV Energy, Inc.		8,639		126,907
OGE Energy Corp.		3,696		177,778
ONEOK, Inc.		3,684		237,876
Pepco Holdings, Inc.		8,336		156,133
PG&E Corp.		14,431		664,692
Pinnacle West Capital Corp.		4,006		169,173
PPL Corp.		17,521		445,559
Progress Energy, Inc.		10,564		482,880
Public Service Enterprise Group, Inc.		17,916		585,853
Questar Corp.		6,548		117,013
SCANA Corp.		4,038		163,458
Sempra Energy		7,874		419,133
Southern Co.		30,279		1,153,933
TECO Energy, Inc.		7,415		134,286
The AES Corp. *		29,594		366,078
UGI Corp.		3,833		122,234
Vectren Corp.		3,070		80,802
Westar Energy, Inc.		3,557		92,482
Wisconsin Energy Corp.		4,298		254,442
Xcel Energy, Inc.		17,192		411,576

				16,647,055

Total Common Stock
(Cost $432,377,245)				485,299,314




Other Investment Company 0.0% of net assets

Money Fund 0.0%
State Street Institutional Liquid Reserves Fund - Institutional Class		157,893		157,893

Total Other Investment Company
(Cost $157,893)				157,893



End of Investments.



Collateral Invested for Securities on Loan 0.2% of net assets


State Street Navigator Securities Lending Prime Portfolio		839,035		839,035

Total Collateral Invested for Securities on Loan
(Cost $839,035)				839,035



End of Collateral Invested for Securities on Loan

At 2/28/11, the tax basis cost of the fund’s investments was $432,596,593 and the unrealized appreciation and depreciation were $58,479,162 and ($5,618,548), respectively, with a net unrealized appreciation of 52,860,614.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Issuer is affiliated with the fund’s adviser.

See financial notes 45

Schwab U.S. Large-Cap ETF

Statement of

Assets and Liabilities

As of February 28, 2011 (unaudited)



Assets

Investments, at value including securities on loan of $820,216 (cost $432,535,138)		$485,457,207
Collateral invested for securities on loan		839,035
Receivables:
Investments sold		28,298,949
Dividends		972,364
Income from securities on loan		1,056
Foreign tax reclaims		1,004
Interest	+	78

Total assets		515,569,693

Liabilities

Collateral held for securities on loan		839,035
Payables:
Investment adviser fees		3,406
Fund shares redeemed	+	28,507,965

Total liabilities		29,350,406

Net Assets

Total assets		515,569,693
Total liabilities	−	29,350,406

Net assets		$486,219,287

Net Assets by Source
Capital received from investors		421,063,996
Net investment income not yet distributed		1,483,281
Net realized capital gains		10,741,586
Net unrealized capital gains		52,930,424

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$486,219,287

15,350,001

$31.68

46 See financial notes

Schwab U.S. Large-Cap ETF

Statement of

Operations

For September 1, 2010 through February 28, 2011 (unaudited)



Investment Income

Dividends (including $3,887 from affiliated issuer and net of foreign withholding tax of $1,135)		$3,803,903
Interest		653
Securities on loan	+	1,056

Total investment income		3,805,612

Expenses

Investment adviser fees		151,308

Total expenses	−	151,308

Net investment income		3,654,304

Realized and Unrealized Gains (Losses)

Net realized gain (including $12,747 gain from affiliated issuer)		5,842,236
Net realized gains on in-kind redemptions	+	5,084,229

Net realized gains		10,926,465
Net unrealized gains on investments	+	72,787,727

Net realized and unrealized gains		83,714,192

Net increase in net assets resulting from operations		$87,368,496

See financial notes 47

Schwab U.S. Large-Cap ETF

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.



Operations


9/1/10-2/28/11				*10/30/09-8/31/10**
Net investment income		$3,654,304			$2,706,444
Net realized gains		10,926,465			1,027,301
Net unrealized gains (losses)	+	72,787,727			(19,857,303	)

Net increase (decrease) in net assets resulting from operations		87,368,496			(16,123,558	)

Distributions to Shareholders

Distributions from net investment income		($3,305,000	)		($1,572,500	)

Transactions in Fund Shares

9/1/10-2/28/11

10/30/09*-8/31/10

SHARES

VALUE

SHARES

VALUE

Shares Sold

6,300,000

$186,762,341

11,350,001

$301,973,952

Shares Redeemed

(1,900,000

)

(58,109,313

)

(400,000

)

(10,775,131

)

Net transactions in fund shares

4,400,000

$128,653,028

10,950,001

$291,198,821

Shares Outstanding and Net Assets

9/1/10-2/28/11

10/30/09*-8/31/10

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

10,950,001

$273,502,763

—

$—

Total increase

4,400,000

212,716,524

10,950,001

273,502,763

End of period

15,350,001

$486,219,287

10,950,001

$273,502,763

Net investment income not yet distributed

$1,483,281

$1,133,977


*		Commencement of operations.

48 See financial notes

Schwab U.S. Large-Cap Growth ETF™

Financial Statements

Financial Highlights


	9/1/10–			12/9/09¹–
	2/28/11*			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		24.21			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.11			0.15
Net realized and unrealized gains (losses)		7.58			(0.83	)

Total from investment operations		7.69			(0.68	)
Less distributions:
Distributions from net investment income		(0.11	)		(0.11	)

Net asset value at end of period		31.79			24.21

Total return (%)		31.83	²		(2.75	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.13	³		0.14	^3,4
Gross operating expenses		0.13	³		0.14	³
Net investment income (loss)		0.84	³		0.86	³
Portfolio turnover rate⁵		4	²		6	²
Net assets, end of period ($ x 1,000)		298,840			108,946

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended August 31, 2010 is a blended rate.

⁵ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

See financial notes 49

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings as of February 28, 2011 (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		261,635,006		298,560,435
		—%	Other Investment Company		68,229		68,229


	99	.9%	Total Investments		261,703,235		298,628,664
	0	.2%	Collateral Invested for Securities on Loan		623,485		623,485
	(0	.1)%	Other Assets and Liabilities, Net				(411,984	)


	100	.0%	Net Assets				298,840,165


	Number		Value
Security	of Shares		($)

Common Stock 99.9% of net assets

Automobiles & Components 0.8%
BorgWarner, Inc. *		5,510		427,631
Johnson Controls, Inc.		31,587		1,288,749
Lear Corp. *		2,297		243,023
The Goodyear Tire & Rubber Co. *		10,723		152,052
Visteon Corp. *		2,280		168,606

				2,280,061

Banks 0.4%
Hudson City Bancorp, Inc.		22,953		263,959
SunTrust Banks, Inc.		23,411		706,310
Zions Bancorp		7,942		185,525

				1,155,794

Capital Goods 7.3%
Aecom Technology Corp. *		4,573		130,971
AGCO Corp. *		4,351		238,348
AMETEK, Inc.		7,332		307,577
Bucyrus International, Inc.		3,591		326,996
Caterpillar, Inc.		26,713		2,749,569
Cooper Industries plc		7,899		508,301
Cummins, Inc.		8,550		864,576
Danaher Corp.		23,705		1,199,473
Deere & Co.		19,762		1,781,544
Donaldson Co., Inc.		3,395		191,138
Dover Corp.		8,667		556,855
Emerson Electric Co.		35,417		2,112,978
Fastenal Co.		6,432		399,620
First Solar, Inc. *(a)		2,632		387,930
Flowserve Corp.		2,646		330,671
Fluor Corp.		8,460		598,630
Foster Wheeler AG *		5,477		198,048
Goodrich Corp.		5,873		506,429
Illinois Tool Works, Inc.		20,138		1,089,466
ITT Corp.		8,648		500,979
Jacobs Engineering Group, Inc. *		5,859		293,302
Joy Global, Inc.		4,700		457,686
KBR, Inc.		7,243		237,570
Lincoln Electric Holdings, Inc.		1,880		134,194
McDermott International, Inc. *		10,959		251,509
MSC Industrial Direct Co., Class A		2,079		131,372
Navistar International Corp. *		2,503		155,136
Oshkosh Corp. *		3,948		140,825
Owens Corning, Inc. *		5,117		182,830
PACCAR, Inc.		17,334		868,953
Pall Corp.		5,481		297,947
Precision Castparts Corp.		6,768		959,364
Quanta Services, Inc. *		9,967		227,347
Rockwell Collins, Inc.		7,708		496,704
Roper Industries, Inc.		4,512		379,595
Spirit AeroSystems Holdings, Inc., Class A *		4,725		122,803
SPX Corp.		2,277		181,614
Textron, Inc.		12,410		336,187
The Babcock & Wilcox Co. *		5,479		185,026
The Shaw Group, Inc. *		3,969		157,649
The Timken Co.		3,477		169,399
URS Corp. *		3,966		184,538
W.W. Grainger, Inc.		2,822		375,919

				21,907,568

Commercial & Professional Services 1.0%
Copart, Inc. *		3,591		150,858
Corrections Corp. of America *		5,148		127,876
Covanta Holding Corp.		6,237		105,530
Equifax, Inc.		6,063		216,752
IHS, Inc., Class A *		2,268		189,832
Iron Mountain, Inc.		8,648		224,848
Manpower, Inc.		3,818		242,443
Nielsen Holdings N.V. *		3,384		89,981
Republic Services, Inc.		14,893		440,982
Robert Half International, Inc.		6,956		221,896
Stericycle, Inc. *		4,008		346,371
The Dun & Bradstreet Corp.		2,301		185,921
Towers Watson & Co., Class A		2,660		156,408
Verisk Analytics, Inc., Class A *		5,333		172,523
Waste Connections, Inc.		5,688		164,895

				3,037,116

Consumer Durables & Apparel 1.0%
Coach, Inc.		13,804		758,116
Garmin Ltd. (a)		5,452		185,095
Harman International Industries, Inc. *		3,409		165,814
Mohawk Industries, Inc. *		2,497		145,101
NIKE, Inc., Class B		14,101		1,255,412
NVR, Inc. *		232		168,863
Polo Ralph Lauren Corp.		3,008		381,144

				3,059,545

50 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Consumer Services 2.3%
Apollo Group, Inc., Class A *		6,204		280,793
Chipotle Mexican Grill, Inc. *		1,504		368,480
Darden Restaurants, Inc.		6,615		311,765
DeVry, Inc.		2,879		156,186
Hyatt Hotels Corp., Class A *		1,884		86,193
International Game Technology		14,142		232,777
Las Vegas Sands Corp. *		21,117		984,897
Marriott International, Inc., Class A		14,738		577,877
MGM Resorts International *		14,852		207,037
Starbucks Corp.		34,866		1,149,881
Starwood Hotels & Resorts Worldwide, Inc.		8,119		496,071
Strayer Education, Inc. (a)		760		104,454
Weight Watchers International, Inc.		1,554		94,996
Wyndham Worldwide Corp.		8,505		266,036
Wynn Resorts Ltd.		3,987		490,122
Yum! Brands, Inc.		21,891		1,101,774

				6,909,339

Diversified Financials 3.2%
Affiliated Managers Group, Inc. *		2,470		263,672
BlackRock, Inc.		4,514		920,811
CIT Group, Inc. *		8,471		366,964
CME Group, Inc.		3,198		995,473
Discover Financial Services		25,481		554,212
ETRADE Financial Corp.		9,226		147,431
Eaton Vance Corp.		5,684		177,909
Franklin Resources, Inc.		7,334		921,297
IntercontinentalExchange, Inc. *		3,418		438,188
Jefferies Group, Inc.		5,454		131,223
Leucadia National Corp.		9,038		299,429
Moody’s Corp.		9,654		307,963
MSCI, Inc., Class A *		5,490		194,895
Northern Trust Corp.		11,366		586,145
SEI Investments Co.		7,371		169,607
State Street Corp.		23,585		1,054,721
T. Rowe Price Group, Inc.		12,043		806,640
TD Ameritrade Holding Corp.		11,290		246,122
The Charles Schwab Corp. (b)		44,932		852,360
The NASDAQ OMX Group, Inc. *		7,520		215,147

				9,650,209

Energy 11.5%
Alpha Natural Resources, Inc. *		5,670		307,427
Anadarko Petroleum Corp.		23,193		1,897,883
Arch Coal, Inc.		7,708		258,449
Baker Hughes, Inc.		19,967		1,418,655
Cabot Oil & Gas Corp.		4,914		224,373
Cameron International Corp. *		11,844		700,336
Chesapeake Energy Corp.		30,120		1,072,573
Cimarex Energy Co.		3,969		460,920
Cobalt International Energy, Inc. *		5,838		91,423
Concho Resources, Inc. *		4,512		480,618
CONSOL Energy, Inc.		10,387		526,725
Continental Resources, Inc. *		1,512		105,129
Denbury Resources, Inc. *		19,014		460,709
Diamond Offshore Drilling, Inc.		3,058		239,227
EOG Resources, Inc.		12,036		1,351,763
EXCO Resources, Inc.		8,127		166,360
FMC Technologies, Inc. *		5,890		553,954
Halliburton Co.		42,676		2,003,211
Helmerich & Payne, Inc.		4,339		281,992
Hess Corp.		14,104		1,227,471
Massey Energy Co.		4,904		310,570
Murphy Oil Corp.		8,894		653,976
Nabors Industries Ltd. *		13,546		385,655
National-Oilwell Varco, Inc.		19,603		1,559,811
Newfield Exploration Co. *		6,204		451,589
Noble Corp.		12,032		537,951
Noble Energy, Inc.		8,460		783,904
Occidental Petroleum Corp.		38,019		3,876,797
Oceaneering International, Inc. *		2,444		204,392
Peabody Energy Corp.		12,431		814,106
Petrohawk Energy Corp. *		15,040		324,864
Pioneer Natural Resources Co.		4,512		461,758
Plains Exploration & Production Co. *		6,615		259,110
Pride International, Inc. *		7,570		314,231
QEP Resources, Inc.		8,312		328,740
Quicksilver Resources, Inc. *		5,670		87,828
Range Resources Corp.		7,219		391,992
Rowan Cos., Inc. *		5,904		251,924
Schlumberger Ltd.		64,323		6,009,055
Southwestern Energy Co. *		16,222		640,445
Sunoco, Inc.		5,506		230,481
Ultra Petroleum Corp. *		7,182		325,704
Weatherford International Ltd. *		34,841		842,455
Whiting Petroleum Corp. *		5,700		372,438

				34,248,974

Food & Staples Retailing 3.9%
Costco Wholesale Corp.		20,573		1,538,655
CVS Caremark Corp.		64,021		2,116,534
The Kroger Co.		28,204		645,872
Wal-Mart Stores, Inc.		95,135		4,945,117
Walgreen Co.		45,925		1,990,389
Whole Foods Market, Inc.		6,089		356,572

				11,593,139

Food, Beverage & Tobacco 1.9%
Brown-Forman Corp., Class B		5,320		367,878
Flowers Foods, Inc.		4,349		115,683
Green Mountain Coffee Roasters, Inc. *		5,455		222,455
Hansen Natural Corp. *		3,402		195,785
PepsiCo, Inc.		74,824		4,745,338
Ralcorp Holdings, Inc. *		2,444		158,494

				5,805,633

Health Care Equipment & Services 7.8%
Aetna, Inc.		19,587		731,770
Alere, Inc. *		3,950		152,628
AmerisourceBergen Corp.		12,865		487,712
Baxter International, Inc.		27,464		1,459,712
Becton, Dickinson & Co.		10,450		836,000
Boston Scientific Corp. *		69,577		498,171
C.R. Bard, Inc.		4,347		424,963
CareFusion Corp. *		10,390		283,855

See financial notes 51

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Cerner Corp. *		3,197		321,139
Community Health Systems, Inc. *		4,534		185,305
Coventry Health Care, Inc. *		6,970		210,494
Covidien plc		23,708		1,219,777
DaVita, Inc. *		4,891		388,199
DENTSPLY International, Inc.		6,684		249,781
Edwards Lifesciences Corp. *		5,307		451,307
Express Scripts, Inc. *		23,576		1,325,443
Gen-Probe, Inc. *		2,322		146,007
Henry Schein, Inc. *		4,343		299,580
Hologic, Inc. *		12,083		243,835
Hospira, Inc. *		8,105		428,349
IDEXX Laboratories, Inc. *		2,676		207,925
Intuitive Surgical, Inc. *		1,882		617,202
Kinetic Concepts, Inc. *		3,016		147,694
Laboratory Corp. of America Holdings *		4,940		445,242
Lincare Holdings, Inc.		4,713		138,279
McKesson Corp.		12,220		968,802
Medco Health Solutions, Inc. *		19,963		1,230,519
Medtronic, Inc.		51,000		2,035,920
Patterson Cos., Inc.		4,725		157,720
Quest Diagnostics, Inc.		6,866		389,645
ResMed, Inc. *		7,180		226,888
St. Jude Medical, Inc. *		16,078		769,815
Stryker Corp.		14,294		904,238
UnitedHealth Group, Inc.		52,839		2,249,885
Universal Health Services, Inc., Class B		4,165		190,382
Varian Medical Systems, Inc. *		5,682		393,649
WellPoint, Inc. *		18,804		1,249,902
Zimmer Holdings, Inc. *		9,471		590,422

				23,258,156

Household & Personal Products 1.2%
Church & Dwight Co., Inc.		3,572		269,472
Colgate-Palmolive Co.		22,669		1,779,970
Energizer Holdings, Inc. *		3,258		217,732
Herbalife Ltd.		3,008		235,857
Mead Johnson Nutrition Co.		9,624		575,996
The Estee Lauder Cos., Inc., Class A		5,670		535,305

				3,614,332

Insurance 2.8%
Alleghany Corp. *		376		128,122
Berkshire Hathaway, Inc., Class B *		90,240		7,876,147
Brown & Brown, Inc.		5,481		143,273
Markel Corp. *		417		173,326
Wesco Financial Corp.		35		13,691
White Mountains Insurance Group Ltd.		376		142,786

				8,477,345

Materials 5.1%
Airgas, Inc.		3,253		203,573
Albemarle Corp.		4,324		248,889
Alcoa, Inc.		47,828		805,902
Allegheny Technologies, Inc.		4,515		302,866
AptarGroup, Inc.		3,024		145,666
Ball Corp.		8,716		314,648
CF Industries Holdings, Inc.		3,391		479,080
Cliffs Natural Resources, Inc.		6,580		638,721
Crown Holdings, Inc. *		7,608		292,756
Ecolab, Inc.		10,940		532,122
FMC Corp.		3,442		266,548
Freeport-McMoRan Copper & Gold, Inc.		44,368		2,349,286
LyondellBasell Industries N.V., Class A *		15,980		608,518
Martin Marietta Materials, Inc.		2,280		202,601
Monsanto Co.		25,756		1,851,599
Nalco Holding Co.		6,071		155,235
Newmont Mining Corp.		23,124		1,278,064
Nucor Corp.		13,227		634,367
Praxair, Inc.		14,482		1,439,221
Reliance Steel & Aluminum Co.		3,434		190,003
Sigma-Aldrich Corp.		4,931		315,042
Southern Copper Corp.		10,156		429,802
Steel Dynamics, Inc.		10,345		190,969
The Lubrizol Corp.		3,213		349,799
The Mosaic Co.		7,019		602,581
Titanium Metals Corp. *		3,858		73,263
United States Steel Corp.		6,804		391,162

				15,292,283

Media 3.8%
Cablevision Systems Corp., Class A		11,289		416,000
Charter Communications, Inc., Class A *		1,880		86,048
Clear Channel Outdoor Holdings, Inc., Class A *		1,986		29,274
Comcast Corp., Class A		132,548		3,414,436
DIRECTV, Class A *		39,202		1,802,116
Discovery Communications, Inc., Series A *		13,230		570,345
DISH Network Corp., Class A *		9,664		224,688
DreamWorks Animation SKG, Inc., Class A *		2,668		73,690
John Wiley & Sons, Inc., Class A		2,462		117,708
Liberty Global, Inc., Series A *		10,797		454,554
Liberty Media - Starz, Series A *		2,457		172,481
Liberty Media Corp. - Capital, Series A *		3,852		279,501
Scripps Networks Interactive, Class A		3,976		206,513
Sirius XM Radio, Inc. *		184,270		333,529
The Interpublic Group of Cos., Inc. *		23,147		305,540
The Washington Post Co., Class B (a)		228		98,745
Time Warner Cable, Inc.		16,569		1,195,950
Viacom, Inc., Class B		25,219		1,126,281
Virgin Media, Inc.		14,100		384,084

				11,291,483

Pharmaceuticals, Biotechnology & Life Sciences 4.7%
Alexion Pharmaceuticals, Inc. *		4,136		398,214
Allergan, Inc.		14,290		1,059,889
Amgen, Inc. *		44,974		2,308,516
Amylin Pharmaceuticals, Inc. *		5,452		83,416
Biogen Idec, Inc. *		10,830		740,772
Celgene Corp. *		21,624		1,148,234
Cephalon, Inc. *		3,384		190,553

52 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Charles River Laboratories International, Inc. *		3,223		117,446
Covance, Inc. *		3,070		173,240
Endo Pharmaceuticals Holdings, Inc. *		4,914		174,545
Genzyme Corp. *		11,920		899,364
Gilead Sciences, Inc. *		39,483		1,539,047
Human Genome Sciences, Inc. *		8,537		213,681
Illumina, Inc. *		5,867		407,170
King Pharmaceuticals, Inc. *		10,304		146,729
Life Technologies Corp. *		8,683		463,412
Mettler-Toledo International, Inc. *		1,692		289,958
Mylan, Inc. *		20,304		464,353
PerkinElmer, Inc.		5,481		145,247
Perrigo Co.		4,136		316,115
Pharmaceutical Product Development, Inc.		5,292		145,371
Talecris Biotherapeutics Holdings Corp. *		2,881		71,852
Techne Corp.		1,743		124,956
Thermo Fisher Scientific, Inc. *		19,176		1,070,404
United Therapeutics Corp. *		2,314		156,033
Vertex Pharmaceuticals, Inc. *		9,439		440,518
Warner Chilcott plc, Class A		5,287		125,196
Waters Corp. *		4,367		362,679
Watson Pharmaceuticals, Inc. *		6,227		348,650

				14,125,560

Real Estate 1.7%
AvalonBay Communities, Inc.		4,136		500,580
Boston Properties, Inc.		6,768		649,187
CB Richard Ellis Group, Inc., Class A *		13,973		349,884
Digital Realty Trust, Inc. (a)		4,217		248,044
Federal Realty Investment Trust		3,040		255,907
Public Storage		6,605		741,411
Simon Property Group, Inc.		13,724		1,510,189
SL Green Realty Corp.		3,582		271,265
Ventas, Inc.		7,390		409,554

				4,936,021

Retailing 5.4%
Advance Auto Parts, Inc.		4,161		260,811
Amazon.com, Inc. *		16,356		2,834,331
AutoZone, Inc. *		1,316		339,462
Bed Bath & Beyond, Inc. *		12,270		590,800
Best Buy Co., Inc.		15,114		487,275
CarMax, Inc. *		10,580		374,215
Dollar General Corp. *		1,711		48,336
Dollar Tree, Inc. *		5,872		295,479
Expedia, Inc.		9,967		197,945
Family Dollar Stores, Inc.		5,480		274,438
GameStop Corp., Class A *		7,206		143,760
Guess?, Inc.		3,089		139,901
Kohl’s Corp. *		13,367		720,348
Liberty Media Corp. - Interactive, Series A *		28,117		451,559
Lowe’s Cos., Inc.		64,935		1,699,349
Netflix, Inc. *		2,089		431,734
Nordstrom, Inc.		7,938		359,274
O’Reilly Automotive, Inc. *		6,433		357,546
PetSmart, Inc.		5,648		230,834
Priceline.com, Inc. *		2,256		1,023,953
Ross Stores, Inc.		5,828		419,849
Sears Holdings Corp. *(a)		2,068		172,285
Staples, Inc.		33,840		720,792
Target Corp.		30,162		1,585,013
The Sherwin-Williams Co.		4,324		355,087
The TJX Cos., Inc.		19,186		956,806
Tiffany & Co.		5,828		358,713
Urban Outfitters, Inc. *		6,426		246,630

				16,076,525

Semiconductors & Semiconductor Equipment 1.6%
Advanced Micro Devices, Inc. *		26,738		246,257
Altera Corp.		14,698		615,258
Broadcom Corp., Class A		20,389		840,435
Cree, Inc. *		5,320		280,204
Lam Research Corp. *		6,047		331,980
LSI Corp. *		30,268		190,386
Marvell Technology Group Ltd. *		25,214		460,912
MEMC Electronic Materials, Inc. *		10,650		144,521
Micron Technology, Inc. *		46,515		517,712
NVIDIA Corp. *		26,696		604,931
ON Semiconductor Corp. *		20,501		228,586
Xilinx, Inc.		12,110		402,658

				4,863,840

Software & Services 14.2%
Accenture plc, Class A		29,169		1,501,620
Activision Blizzard, Inc.		25,430		282,782
Adobe Systems, Inc. *		23,810		821,445
Akamai Technologies, Inc. *		8,509		319,343
Alliance Data Systems Corp. *		2,483		195,511
ANSYS, Inc. *		4,355		245,274
Autodesk, Inc. *		10,932		459,691
Automatic Data Processing, Inc.		23,537		1,176,850
BMC Software, Inc. *		8,502		420,849
CA, Inc.		19,250		477,015
Citrix Systems, Inc. *		8,692		609,831
Cognizant Technology Solutions Corp., Class A *		13,973		1,074,104
DST Systems, Inc.		1,739		88,689
eBay, Inc. *		52,678		1,764,976
Electronic Arts, Inc. *		15,466		290,761
Equinix, Inc. *		2,104		181,870
FactSet Research Systems, Inc.		2,083		218,465
Fidelity National Information Services, Inc.		11,689		378,607
Fiserv, Inc. *		6,989		442,194
Genpact Ltd. *		4,914		68,550
Global Payments, Inc.		3,771		180,970
Google, Inc., Class A *		10,957		6,721,024
IAC/InterActiveCorp *		3,807		118,283
Intuit, Inc. *		13,734		722,134
MasterCard, Inc., Class A		4,940		1,188,366
McAfee, Inc. *		7,057		338,383
Microsoft Corp.		358,219		9,521,461
Nuance Communications, Inc. *		11,676		217,874
Oracle Corp.		179,916		5,919,236
Red Hat, Inc. *		8,883		366,690
Rovi Corp. *		4,766		264,132

See financial notes 53

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
SAIC, Inc. *		17,372		283,858
Salesforce.com, Inc. *		5,640		746,003
Symantec Corp. *		37,076		668,480
Total System Services, Inc.		9,400		166,850
VeriSign, Inc.		8,144		287,402
Visa, Inc., Class A		23,692		1,730,701
VMware, Inc., Class A *		3,009		251,703
Western Union Co.		31,032		682,394
Yahoo!, Inc. *		59,432		974,685
				��
				42,369,056

Technology Hardware & Equipment 14.6%
Agilent Technologies, Inc. *		16,181		680,896
Amphenol Corp., Class A		8,307		477,486
Apple, Inc. *		43,242		15,273,507
Arrow Electronics, Inc. *		5,670		222,264
Brocade Communications Systems, Inc. *		21,257		135,407
Cisco Systems, Inc. *		260,957		4,843,362
Corning, Inc.		73,509		1,695,118
Dell, Inc. *		81,059		1,283,164
Dolby Laboratories, Inc., Class A *		2,475		125,161
EMC Corp. *		95,779		2,606,147
F5 Networks, Inc. *		3,952		466,376
FLIR Systems, Inc. *		7,531		243,251
Harris Corp.		6,224		290,412
Hewlett-Packard Co.		107,160		4,675,391
Ingram Micro, Inc., Class A *		7,038		140,267
Itron, Inc. *		1,890		107,182
Jabil Circuit, Inc.		9,589		205,492
Juniper Networks, Inc. *		24,527		1,079,188
Motorola Mobility Holdings, Inc. *		12,615		380,973
Motorola Solutions, Inc. *		14,394		556,184
NCR Corp. *		7,560		144,396
NetApp, Inc. *		16,623		858,744
QUALCOMM, Inc.		75,426		4,493,881
SanDisk Corp. *		10,963		543,765
Seagate Technology plc *		21,478		272,771
Tellabs, Inc.		16,771		90,396
Teradata Corp. *		7,927		379,069
Trimble Navigation Ltd. *		5,670		278,680
Tyco Electronics Ltd.		20,968		755,687
Western Digital Corp. *		10,528		321,946

				43,626,563

Telecommunication Services 0.8%
American Tower Corp., Class A *		18,832		1,016,175
Clearwire Corp., Class A *(a)		5,320		26,760
Crown Castle International Corp. *		11,545		486,622
MetroPCS Communications, Inc. *		11,857		170,741
NII Holdings, Inc. *		7,762		317,931
SBA Communications Corp., Class A *		5,481		230,695
United States Cellular Corp. *		644		32,187

				2,281,111

Transportation 2.3%
AMR Corp. *		15,826		106,667
C.H. Robinson Worldwide, Inc.		7,756		561,457
CSX Corp.		17,904		1,336,713
Delta Air Lines, Inc. *		36,923		415,014
Expeditors International of Washington, Inc.		9,994		477,713
FedEx Corp.		13,914		1,252,538
Hertz Global Holdings, Inc. *		8,694		132,236
J.B. Hunt Transport Services, Inc.		4,342		180,671
Kansas City Southern *		4,762		256,386
Union Pacific Corp.		23,351		2,227,919

				6,947,314

Utilities 0.6%
Calpine Corp. *		16,582		250,886
EQT Corp.		7,000		345,100
ITC Holdings Corp.		2,295		157,322
NRG Energy, Inc. *		11,579		231,464
ONEOK, Inc.		4,734		305,674
The AES Corp. *		37,431		463,022

				1,753,468

Total Common Stock
(Cost $261,635,006)				298,560,435




Other Investment Company 0.0% of net assets

Money Fund 0.0%
State Street Institutional Liquid Reserves Fund - Institutional Class		68,229		68,229

Total Other Investment Company
(Cost $68,229)				68,229



End of Investments



Collateral Invested for Securities on Loan 0.2% of net assets


State Street Navigator Securities Lending Prime Portfolio		623,485		623,485

Total Collateral Invested for Securities on Loan
(Cost $623,485)				623,485



End of Collateral Invested for Securities on Loan

At 2/28/11, the tax basis cost of the fund’s investments was $261,821,895 and the unrealized appreciation and depreciation were $39,753,412 and ($2,946,643), respectively, with a net unrealized appreciation of 36,806,769.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Issuer is affiliated with the fund’s adviser.

54 See financial notes

Schwab U.S. Large-Cap Growth ETF

Statement of

Assets and Liabilities

As of February 28, 2011 (unaudited)



Assets

Investments, at value including securities on loan of $610,333 (cost $261,703,235)		$298,628,664
Collateral invested for securities on loan		623,485
Receivables:
Dividends		213,927
Income from securities on loan		755
Interest	+	41

Total assets		299,466,872

Liabilities

Collateral held for securities on loan		623,485
Payables:
Investment adviser fees	+	3,222

Total liabilities		626,707

Net Assets

Total assets		299,466,872
Total liabilities	−	626,707

Net assets		$298,840,165

Net Assets by Source
Capital received from investors		262,300,681
Net investment income not yet distributed		296,048
Net realized capital losses		(681,993	)
Net unrealized capital gains		36,925,429

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$298,840,165

9,400,001

$31.79

See financial notes 55

Schwab U.S. Large-Cap Growth ETF

Statement of

Operations

For September 1, 2010 through February 28, 2011 (unaudited)



Investment Income

Dividends (including $4,177 from affiliated issuer)		$917,369
Interest		242
Securities on loan	+	756

Total investment income		918,367

Expenses

Investment adviser fees		122,932

Total expenses	−	122,932

Net investment income		795,435

Realized and Unrealized Gains (Losses)

Net realized losses on investments (including $5,535 loss from affiliated issuer)		(793,587	)
Net realized gains on in-kind redemptions	+	248,618

Net realized losses		(544,969	)
Net unrealized gains on investments	+	44,649,329

Net realized and unrealized gains		44,104,360

Net increase in net assets resulting from operations		$44,899,795

56 See financial notes

Schwab U.S. Large-Cap Growth ETF

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.



Operations


9/1/10-2/28/11				*12/9/09-8/31/10**
Net investment income		$795,435			$456,853
Net realized gains (losses)		(544,969	)		418,970
Net unrealized gains (losses)	+	44,649,329			(7,723,900	)

Net increase (decrease) in net assets resulting from operations		44,899,795			(6,848,077	)

Distributions to Shareholders

Distributions from net investment income		($658,740	)		($297,500	)

Transactions in Fund Shares

9/1/10-2/28/11

12/9/09*-8/31/10

SHARES

VALUE

SHARES

VALUE

Shares Sold

4,950,000

$147,012,147

4,800,001

$123,912,430

Shares Redeemed

(50,000

)

(1,358,741

)

(300,000

)

(7,821,149

)

Net transactions in fund shares

4,900,000

$145,653,406

4,500,001

$116,091,281

Shares Outstanding and Net Assets

9/1/10-2/28/11

12/9/09*-8/31/10

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

4,500,001

$108,945,704

—

$—

Total increase

4,900,000

189,894,461

4,500,001

108,945,704

End of period

9,400,001

$298,840,165

4,500,001

$108,945,704

Net investment income not yet distributed

$296,048

$159,353


*		Commencement of operations.

See financial notes 57

Schwab U.S. Large-Cap Value ETF™

Financial Statements

Financial Highlights


	9/1/10–			12/9/09¹–
	2/28/11*			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		24.36			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.35			0.47
Net realized and unrealized gains (losses)		5.62			(0.78	)

Total from investment operations		5.97			(0.31	)
Less distributions:
Distributions from net investment income		(0.36	)		(0.33	)

Net asset value at end of period		29.97			24.36

Total return (%)		24.68	²		(1.29	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.13	³		0.14	^3,4
Gross operating expenses		0.13	³		0.14	³
Net investment income (loss)		2.85	³		2.98	³
Portfolio turnover rate⁵		4	²		5	²
Net assets, end of period ($ x 1,000)		178,322			84,052

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended August 31, 2010 is a blended rate.

⁵ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

58 See financial notes

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings as of February 28, 2011 (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	.6%	Common Stock		157,888,451		177,692,428
	0	.1%	Other Investment Company		93,278		93,278


	99	.7%	Total Investments		157,981,729		177,785,706
��	0	.1%	Collateral Invested for Securities on Loan		211,677		211,677
	0	.2%	Other Assets and Liabilities, Net				324,186


	100	.0%	Net Assets				178,321,569


	Number		Value
Security	of Shares		($)

Common Stock 99.6% of net assets

Automobiles & Components 1.2%
Ford Motor Co. *		88,262		1,328,343
General Motors Co. *		14,429		483,804
Harley-Davidson, Inc.		6,189		252,635
TRW Automotive Holdings Corp. *		2,635		149,668

				2,214,450

Banks 5.2%
BB&T Corp.		18,207		502,513
BOK Financial Corp.		726		37,280
Capitol Federal Financial, Inc.		4,403		55,654
City National Corp.		1,228		72,341
Comerica, Inc.		4,709		183,180
Commerce Bancshares, Inc.		2,041		81,967
Cullen/Frost Bankers, Inc.		1,464		85,732
Fifth Third Bancorp		23,693		345,918
First Horizon National Corp. *		7,226		83,099
First Republic Bank *		256		7,488
Huntington Bancshares, Inc.		22,557		154,290
KeyCorp		23,394		213,821
M&T Bank Corp.		2,975		261,949
Marshall & Ilsley Corp.		14,042		109,106
New York Community Bancorp, Inc.		10,900		203,394
People’s United Financial, Inc.		10,234		134,884
PNC Financial Services Group, Inc.		13,749		848,313
Regions Financial Corp.		32,893		251,303
TFS Financial Corp.		2,420		25,120
U.S. Bancorp		49,682		1,377,682
Wells Fargo & Co.		129,625		4,181,702

				9,216,736

Capital Goods 9.3%
3M Co.		17,136		1,580,453
Alliant Techsystems, Inc. *		849		61,272
Eaton Corp.		4,379		485,106
General Dynamics Corp.		8,333		634,308
General Electric Co.		277,557		5,806,493
Honeywell International, Inc.		18,802		1,088,824
Hubbell, Inc., Class B		1,452		98,025
Ingersoll-Rand plc		8,568		388,130
L-3 Communications Holdings, Inc.		2,975		235,888
Lockheed Martin Corp.		7,538		596,708
Masco Corp.		9,758		132,611
Northrop Grumman Corp.		7,053		470,294
Parker Hannifin Corp.		4,260		379,907
Pentair, Inc.		2,543		94,294
Raytheon Co.		9,582		490,694
Rockwell Automation, Inc.		3,728		327,057
The Boeing Co.		17,142		1,234,395
Tyco International Ltd.		13,017		590,191
United Technologies Corp.		22,496		1,879,316

				16,573,966

Commercial & Professional Services 0.5%
Avery Dennison Corp.		2,685		107,185
Cintas Corp.		3,480		97,858
Pitney Bowes, Inc.		5,418		136,425
R.R. Donnelley & Sons Co.		5,416		100,846
Waste Management, Inc.		11,611		430,304

				872,618

Consumer Durables & Apparel 1.1%
D.R. Horton, Inc.		7,323		86,704
Fortune Brands, Inc.		4,046		250,286
Hasbro, Inc.		3,233		145,162
Leggett & Platt, Inc.		3,759		86,683
Lennar Corp., Class A		4,206		84,793
Mattel, Inc.		9,550		239,323
Newell Rubbermaid, Inc.		7,975		154,236
Phillips-Van Heusen Corp.		1,579		94,756
Pulte Group, Inc. *		8,729		60,230
Stanley Black & Decker, Inc.		4,403		333,879
Toll Brothers, Inc. *		3,601		76,557
VF Corp.		2,261		216,310
Whirlpool Corp.		2,142		176,715

				2,005,634

Consumer Services 1.6%
Carnival Corp.		10,541		449,785
H&R Block, Inc.		7,553		114,730
McDonald’s Corp.		27,846		2,107,385
Penn National Gaming, Inc. *		1,694		60,595
Royal Caribbean Cruises Ltd. *		3,603		157,775

				2,890,270

Diversified Financials 10.7%
American Express Co.		27,676		1,205,843
Ameriprise Financial, Inc.		6,639		420,381

See financial notes 59

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Bank of America Corp.		258,510		3,694,108
Bank of New York Mellon Corp.		31,669		962,421
Capital One Financial Corp.		11,787		586,639
CBOE Holdings, Inc.		386		11,422
Citigroup, Inc. *		753,894		3,528,224
Federated Investors, Inc., Class B (a)		2,664		73,420
Invesco Ltd.		12,266		329,219
JPMorgan Chase & Co.		101,680		4,747,439
Legg Mason, Inc.		3,738		135,503
LPL Investment Holdings, Inc. *		384		12,906
Morgan Stanley		35,876		1,064,800
NYSE Euronext		6,789		251,193
Raymond James Financial, Inc.		2,541		97,371
SLM Corp. *		12,734		188,718
The Goldman Sachs Group, Inc.		11,309		1,852,188

				19,161,795

Energy 13.8%
Apache Corp.		9,520		1,186,382
Chevron Corp.		52,142		5,409,732
ConocoPhillips		36,078		2,809,394
Devon Energy Corp.		10,835		990,752
El Paso Corp.		18,473		343,598
Exxon Mobil Corp.		131,495		11,246,767
Forest Oil Corp. *		2,921		103,666
Kinder Morgan, Inc. *		2,618		79,849
Marathon Oil Corp.		18,575		921,320
Patterson-UTI Energy, Inc.		4,050		110,727
Southern Union Co.		3,036		86,587
Spectra Energy Corp.		16,732		447,581
The Williams Cos., Inc.		15,355		466,178
Tidewater, Inc.		1,331		82,802
Valero Energy Corp.		14,298		402,918

				24,688,253

Food & Staples Retailing 0.4%
Safeway, Inc.		9,522		207,770
SUPERVALU, Inc.		5,537		47,784
Sysco Corp.		15,266		424,242

				679,796

Food, Beverage & Tobacco 8.1%
Altria Group, Inc.		53,994		1,369,828
Archer-Daniels-Midland Co.		15,470		575,175
Bunge Ltd.		3,808		274,823
Campbell Soup Co.		5,493		184,894
Coca-Cola Enterprises, Inc.		8,707		228,994
ConAgra Foods, Inc.		10,990		254,528
Constellation Brands, Inc., Class A *		4,420		89,814
Dr. Pepper Snapple Group, Inc.		6,199		223,536
General Mills, Inc.		15,650		581,241
H.J. Heinz Co.		8,232		413,411
Hormel Foods Corp.		3,900		106,860
Kellogg Co.		6,452		345,569
Kraft Foods, Inc., Class A		41,584		1,324,035
Lorillard, Inc.		4,046		310,611
McCormick & Co., Inc.		3,163		150,717
Molson Coors Brewing Co., Class B		4,171		190,740
Philip Morris International, Inc.		47,662		2,992,220
Reynolds American, Inc.		8,936		306,684
Sara Lee Corp.		15,651		267,945
Smithfield Foods, Inc. *		4,087		94,614
The Coca-Cola Co.		55,372		3,539,378
The Hershey Co.		4,208		220,163
The J.M. Smucker Co.		3,147		216,640
Tyson Foods, Inc., Class A		7,686		143,190

				14,405,610

Health Care Equipment & Services 0.7%
Beckman Coulter, Inc.		1,815		150,881
Cardinal Health, Inc.		9,067		377,550
CIGNA Corp.		6,926		291,377
Humana, Inc. *		4,522		293,975
Omnicare, Inc.		3,269		93,592
Teleflex, Inc.		1,165		68,024

				1,275,399

Household & Personal Products 3.3%
Alberto-Culver Co.		2,299		85,615
Avon Products, Inc.		11,222		312,084
Kimberly-Clark Corp.		10,722		706,580
The Clorox Co.		3,612		244,749
The Procter & Gamble Co.		72,951		4,599,560

				5,948,588

Insurance 5.5%
ACE Ltd.		8,850		559,762
Aflac, Inc.		12,187		717,327
Allied World Assurance Co. Holdings Ltd.		1,284		79,236
American Financial Group, Inc.		2,057		71,234
American International Group, Inc. *(a)		3,217		119,222
American National Insurance Co.		368		29,907
Aon Corp.		7,735		407,170
Arch Capital Group Ltd. *		1,428		129,234
Assurant, Inc.		2,884		117,177
Assured Guaranty Ltd.		4,456		64,746
Axis Capital Holdings Ltd.		3,451		125,340
Cincinnati Financial Corp.		4,284		145,870
CNA Financial Corp. *		726		21,373
Everest Re Group Ltd.		1,547		137,142
Fidelity National Financial, Inc., Class A		6,021		83,391
Genworth Financial, Inc., Class A *		13,209		174,755
Hanover Insurance Group, Inc.		1,428		66,359
HCC Insurance Holdings, Inc.		3,148		98,029
Lincoln National Corp.		8,455		268,193
Loews Corp.		8,934		386,395
Marsh & McLennan Cos., Inc.		14,227		433,070
MetLife, Inc.		18,182		861,100
Old Republic International Corp.		6,427		80,338
PartnerRe Ltd.		1,832		145,278
Principal Financial Group, Inc.		7,975		273,223
Prudential Financial, Inc.		12,623		830,972
Reinsurance Group of America, Inc.		1,936		116,915
RenaissanceRe Holdings Ltd.		1,458		97,715
The Allstate Corp.		13,209		419,782
The Chubb Corp.		7,914		480,222

60 See financial notes

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
The Hartford Financial Services Group, Inc.		11,193		331,313
The Progressive Corp.		16,327		340,091
The Travelers Cos., Inc.		11,932		715,085
Torchmark Corp.		2,178		142,115
Transatlantic Holdings, Inc.		1,694		86,275
Unum Group		8,568		227,309
Validus Holdings Ltd.		2,171		67,192
W.R. Berkley Corp.		3,487		104,436
XL Group plc		8,260		192,871

				9,747,164

Materials 3.1%
Air Products & Chemicals, Inc.		5,212		479,504
Ashland, Inc.		1,830		103,029
Bemis Co., Inc.		2,783		91,422
Celanese Corp., Series A		4,083		169,240
E.I. du Pont de Nemours & Co.		23,225		1,274,356
Eastman Chemical Co.		1,815		169,539
Huntsman Corp.		5,120		90,368
International Flavors & Fragrances, Inc.		2,057		117,146
International Paper Co.		10,591		294,218
MeadWestvaco Corp.		4,527		132,868
Owens-Illinois, Inc. *		4,522		137,876
PPG Industries, Inc.		4,168		368,368
Sealed Air Corp.		4,206		115,749
Smurfit-Stone Container Corp. *		2,343		90,065
Sonoco Products Co.		2,543		91,752
The Dow Chemical Co.		29,596		1,099,787
The Scotts Miracle-Gro Co., Class A		1,210		67,966
The Valspar Corp.		2,420		92,008
Vulcan Materials Co.		3,005		137,779
Walter Energy, Inc.		1,428		172,802
Weyerhaeuser Co.		13,583		331,561

				5,627,403

Media 3.0%
CBS Corp., Class B		16,009		381,975
Gannett Co., Inc.		6,310		104,178
News Corp., Class A		59,655		1,036,207
Omnicom Group, Inc.		7,973		405,826
The McGraw-Hill Cos., Inc.		7,799		301,665
The Walt Disney Co.		46,103		2,016,545
Time Warner, Inc.		29,090		1,111,238

				5,357,634

Pharmaceuticals, Biotechnology & Life Sciences 8.6%
Abbott Laboratories		40,017		1,924,818
Bristol-Myers Squibb Co.		44,669		1,152,907
Dendreon Corp. *		3,808		127,911
Eli Lilly & Co.		25,253		872,744
Forest Laboratories, Inc. *		7,529		243,939
Johnson & Johnson		71,934		4,419,625
Merck & Co., Inc.		79,933		2,603,418
Pfizer, Inc.		209,526		4,031,280

				15,376,642

Real Estate 2.3%
AMB Property Corp.		4,533		164,910
Annaly Capital Management, Inc.		19,992		358,457
Brookfield Properties Corp. (a)		6,794		119,099
Equity Residential		7,420		408,916
General Growth Properties, Inc. *		10,533		167,685
HCP, Inc.		9,369		356,022
Health Care REIT, Inc.		3,753		195,982
Host Hotels & Resorts, Inc.		16,566		304,814
Kimco Realty Corp.		10,731		207,967
Liberty Property Trust		2,906		98,136
Nationwide Health Properties, Inc.		3,689		157,668
Piedmont Office Realty Trust, Inc., Class A		3,457		69,140
Plum Creek Timber Co., Inc.		4,327		181,561
ProLogis		15,232		247,672
Rayonier, Inc.		2,057		126,156
Realty Income Corp.		3,029		108,953
Regency Centers Corp.		2,165		97,966
The Macerich Co.		3,386		171,467
The St. Joe Co. *(a)		2,420		64,808
UDR, Inc.		4,715		114,669
Vornado Realty Trust		4,736		442,011

				4,164,059

Retailing 1.7%
Abercrombie & Fitch Co., Class A		2,292		131,492
American Eagle Outfitters, Inc.		5,373		82,476
AutoNation, Inc. *(a)		1,268		42,656
Genuine Parts Co.		4,208		221,719
J.C. Penney Co., Inc.		5,418		189,413
Limited Brands, Inc.		7,323		234,482
Macy’s, Inc.		10,994		262,757
The Gap, Inc.		9,077		204,505
The Home Depot, Inc.		42,626		1,597,196

				2,966,696

Semiconductors & Semiconductor Equipment 3.4%
Analog Devices, Inc.		7,787		310,546
Applied Materials, Inc.		35,146		577,449
Intel Corp.		144,668		3,106,022
KLA-Tencor Corp.		4,450		217,249
Linear Technology Corp.		5,742		198,443
Maxim Integrated Products, Inc.		7,409		204,340
Microchip Technology, Inc.		4,813		177,648
National Semiconductor Corp.		6,310		97,805
Texas Instruments, Inc.		30,821		1,097,536

				5,987,038

Software & Services 0.5%
AOL, Inc. *		2,880		60,106
Broadridge Financial Solutions, Inc.		3,102		71,098
Computer Sciences Corp.		4,087		196,707
CoreLogic, Inc.		2,948		54,980
Lender Processing Services, Inc.		2,416		82,313
Paychex, Inc.		8,477		285,082
Synopsys, Inc. *		3,877		107,470

				857,756

See financial notes 61

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Technology Hardware & Equipment 3.3%
Avnet, Inc. *		3,964		135,608
International Business Machines Corp.		32,370		5,240,056
Molex, Inc.		3,482		97,252
Xerox Corp.		36,176		388,892

				5,861,808

Telecommunication Services 4.8%
AT&T, Inc.		154,532		4,385,618
CenturyLink, Inc.		7,642		314,698
Frontier Communications Corp.		26,442		224,493
Qwest Communications International, Inc.		37,166		253,472
Sprint Nextel Corp. *		79,852		348,953
Telephone & Data Systems, Inc.		2,505		84,293
Verizon Communications, Inc.		73,510		2,713,989
Windstream Corp.		12,890		161,641

				8,487,157

Transportation 1.4%
Norfolk Southern Corp.		9,565		627,273
Ryder System, Inc.		1,353		64,714
Southwest Airlines Co.		18,505		218,914
United Continental Holdings, Inc. *		8,211		197,392
United Parcel Service, Inc., Class B		18,100		1,335,780

				2,444,073

Utilities 6.1%
AGL Resources, Inc.		2,078		78,985
Alliant Energy Corp.		2,904		114,360
Ameren Corp.		6,312		176,484
American Electric Power Co., Inc.		12,495		447,071
American Water Works Co., Inc.		4,592		127,382
Aqua America, Inc.		3,601		81,095
Atmos Energy Corp.		2,420		81,844
CenterPoint Energy, Inc.		10,303		163,406
CMS Energy Corp.		6,021		115,964
Consolidated Edison, Inc.		7,544		377,049
Constellation Energy Group, Inc.		4,879		151,591
Dominion Resources, Inc.		15,407		703,021
DPL, Inc.		3,146		81,859
DTE Energy Co.		4,455		209,741
Duke Energy Corp.		34,668		623,677
Edison International		7,535		279,699
Energen Corp.		1,942		118,656
Entergy Corp.		4,973		354,078
Exelon Corp.		17,283		721,738
FirstEnergy Corp.		11,177		428,079
Integrys Energy Group, Inc.		1,970		96,471
MDU Resources Group, Inc.		4,579		98,311
National Fuel Gas Co.		1,817		132,459
NextEra Energy, Inc.		10,619		589,036
NiSource, Inc.		7,323		140,309
Northeast Utilities		4,569		155,529
NSTAR		2,785		125,743
NV Energy, Inc.		6,189		90,916
OGE Energy Corp.		2,541		122,222
Pepco Holdings, Inc.		5,779		108,241
PG&E Corp.		10,240		471,654
Pinnacle West Capital Corp.		2,878		121,538
PPL Corp.		12,618		320,876
Progress Energy, Inc.		7,627		348,630
Public Service Enterprise Group, Inc.		13,039		426,375
Questar Corp.		4,562		81,523
SCANA Corp.		3,094		125,245
Sempra Energy		5,956		317,038
Southern Co.		21,027		801,339
TECO Energy, Inc.		5,297		95,929
UGI Corp.		2,950		94,075
Vectren Corp.		2,059		54,193
Westar Energy, Inc.		2,880		74,880
Wisconsin Energy Corp.		3,031		179,435
Xcel Energy, Inc.		11,451		274,137

				10,881,883

Total Common Stock
(Cost $157,888,451)				177,692,428




Other Investment Company 0.1% of net assets

Money Fund 0.1%
State Street Institutional Liquid Reserves Fund - Institutional Class		93,278		93,278

Total Other Investment Company
(Cost $93,278)				93,278



End of Investments



Collateral Invested for Securities on Loan 0.1% of net assets


State Street Navigator Securities Lending Prime Portfolio		211,677		211,677

Total Collateral Invested for Securities on Loan
(Cost $211,677)				211,677



End of Collateral Invested for Securities on Loan

At 2/28/11, the tax basis cost of the fund’s investments was $158,024,276 and the unrealized appreciation and depreciation were $20,579,477 and ($818,047), respectively, with a net unrealized appreciation $19,761,430.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.

62 See financial notes

Schwab U.S. Large-Cap Value ETF

Statement of

Assets and Liabilities

As of February 28, 2011 (unaudited)



Assets

Investments, at value including securities on loan of $206,319 (cost $157,981,729)		$177,785,706
Collateral invested for securities on loan		211,677
Receivables:
Fund shares sold		1,498,500
Dividends		527,753
Foreign tax reclaims		614
Income from securities on loan		463
Interest	+	34

Total assets		180,024,747

Liabilities

Collateral held for securities on loan		211,677
Payables:
Investments bought		1,489,592
Investment adviser fees	+	1,909

Total liabilities		1,703,178

Net Assets

Total assets		180,024,747
Total liabilities	−	1,703,178

Net assets		$178,321,569

Net Assets by Source
Capital received from investors		158,072,361
Net investment income not yet distributed		758,242
Net realized capital losses		(317,445	)
Net unrealized capital gains		19,808,411

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$178,321,569

5,950,001

$29.97

See financial notes 63

Schwab U.S. Large-Cap Value ETF

Statement of

Operations

For September 1, 2010 through February 28, 2011 (unaudited)



Investment Income

Dividends (net of foreign withholding tax of $706)		$1,825,279
Interest		252
Securities on loan	+	463

Total investment income		1,825,994

Expenses

Investment adviser fees		79,765

Total expenses	−	79,765

Net investment income		1,746,229

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(295,927	)
Net realized gains on in-kind redemptions	+	119,592

Net realized losses		(176,335	)
Net unrealized gains on investments	+	24,048,843

Net realized and unrealized gains		23,872,508

Net increase in net assets resulting from operations		$25,618,737

64 See financial notes

Schwab U.S. Large-Cap Value ETF

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.



Operations


9/1/10-2/28/11				*12/9/09-8/31/10**
Net investment income		$1,746,229			$1,048,767
Net realized losses		(176,335	)		(41,364	)
Net unrealized gains (losses)	+	24,048,843			(4,240,432	)

Net increase (decrease) in net assets resulting from operations		25,618,737			(3,233,029	)

Distributions to Shareholders

Distributions from net investment income		($1,464,270	)		($572,500	)

Transactions in Fund Shares

9/1/10-2/28/11

12/9/09*-8/31/10

SHARES

VALUE

SHARES

VALUE

Shares Sold

2,550,000

$71,408,191

3,500,001

$89,183,566

Shares Redeemed

(50,000

)

(1,293,456

)

(50,000

)

(1,325,670

)

Net transactions in fund shares

2,500,000

$70,114,735

3,450,001

$87,857,896

Shares Outstanding and Net Assets

9/1/10-2/28/11

12/9/09*-8/31/10

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

3,450,001

$84,052,367

—

$—

Total increase

2,500,000

94,269,202

3,450,001

84,052,367

End of period

5,950,001

$178,321,569

3,450,001

$84,052,367

Net investment income not yet distributed

$758,242

$476,283


*		Commencement of operations.

See financial notes 65

Schwab U.S. Mid-Cap ETF™

Financial Statements

Financial Highlights


	1/12/11¹–
	2/28/11*


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.03
Net realized and unrealized gains (losses)		1.32

Total from investment operations		1.35

Net asset value at end of period		26.35

Total return (%)		5.40	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.13	³
Gross operating expenses		0.13	³
Net investment income (loss)		1.99	³
Portfolio turnover rate⁴		1	²
Net assets, end of period ($ x 1,000)		40,837

* 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.

66 See financial notes

Schwab U.S. Mid-Cap ETF

Portfolio Holdings as of February 28, 2011 (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		39,713,195		40,777,641
		—%	Other Investment Company		15,205		15,205


	99	.9%	Total Investments		39,728,400		40,792,846
	0	.7%	Collateral Invested for Securities on Loan		273,842		273,842
	(0	.6)%	Other Assets and Liabilities, Net				(229,291	)


	100	.0%	Net Assets				40,837,397


	Number		Value
Security	of Shares		($)

Common Stock 99.9% of net assets

Automobiles & Components 2.1%
BorgWarner, Inc. *		2,790		216,532
Gentex Corp.		3,379		102,316
Lear Corp. *		1,240		131,192
The Goodyear Tire & Rubber Co. *		5,859		83,081
TRW Automotive Holdings Corp. *		2,511		142,625
Visteon Corp. *		1,178		87,113
WABCO Holdings, Inc. *		1,587		92,728

				855,587

Banks 3.6%
Associated Banc-Corp		4,216		61,006
Bank of Hawaii Corp.		1,233		58,148
BankUnited, Inc. *		651		18,456
BOK Financial Corp.		651		33,429
Capitol Federal Financial, Inc.		4,092		51,723
City National Corp.		1,209		71,222
Commerce Bancshares, Inc.		1,922		77,187
Cullen/Frost Bankers, Inc.		1,395		81,691
East West Bancorp, Inc.		3,596		83,499
First Citizens BancShares, Inc., Class A		155		31,310
First Horizon National Corp.		6,386		73,439
First Niagara Financial Group, Inc.		5,084		73,616
First Republic Bank *		279		8,161
FirstMerit Corp.		2,604		44,398
Fulton Financial Corp.		4,805		52,326
Huntington Bancshares, Inc.		21,080		144,187
Marshall & Ilsley Corp.		12,803		99,479
Prosperity Bancshares, Inc.		1,116		45,555
TCF Financial Corp.		3,255		52,829
TFS Financial Corp.		2,263		23,490
UMB Financial Corp.		811		32,343
Valley National Bancorp		3,937		53,661
Washington Federal, Inc.		2,728		48,477
Westamerica Bancorp		713		36,777
Zions Bancorp		4,216		98,486

				1,454,895

Capital Goods 9.9%
Acuity Brands, Inc.		1,054		59,572
Aecom Technology Corp. *		2,538		72,688
AGCO Corp. *		2,294		125,665
Alliant Techsystems, Inc.		775		55,932
AMETEK, Inc.		3,906		163,857
Armstrong World Industries, Inc.		434		18,072
BE Aerospace, Inc. *		2,398		80,861
Brady Corp., Class A		1,147		40,994
Carlisle Cos., Inc.		1,519		65,332
CLARCOR, Inc.		1,268		52,166
Crane Co.		1,240		58,578
Donaldson Co., Inc.		1,767		99,482
EMCOR Group, Inc. *		1,612		51,358
Foster Wheeler AG *		2,914		105,370
Gardner Denver, Inc.		1,271		92,961
Graco, Inc.		1,457		59,315
Harsco Corp.		1,953		66,734
Hubbell, Inc., Class B		1,364		92,084
IDEX Corp.		2,046		84,377
KBR, Inc.		3,844		126,083
Kennametal, Inc.		2,046		78,689
Lennox International, Inc.		1,305		63,293
Lincoln Electric Holdings, Inc.		1,054		75,235
Masco Corp.		8,804		119,646
McDermott International, Inc. *		5,673		130,195
MSC Industrial Direct Co., Class A		1,116		70,520
Navistar International Corp. *		1,364		84,541
Nordson Corp.		744		81,029
Oshkosh Corp. *		2,232		79,615
Owens Corning, Inc. *		2,728		97,471
Pall Corp.		2,852		155,035
Pentair, Inc.		2,418		89,659
Quanta Services, Inc. *		5,146		117,380
Regal-Beloit Corp.		951		69,376
Seaboard Corp.		9		20,882
Snap-On, Inc.		1,426		81,895
Spirit AeroSystems Holdings, Inc., Class A *		2,480		64,455
SPX Corp.		1,233		98,344
Terex Corp. *		2,635		88,931
Textron, Inc.		6,634		179,715
The Babcock & Wilcox Co. *		2,821		95,265
The Shaw Group, Inc. *		2,046		81,267
The Timken Co.		1,891		92,130
Thomas & Betts Corp. *		1,340		74,223
TransDigm Group, Inc. *		930		74,753
URS Corp. *		2,108		98,085
Wabtec Corp.		1,178		66,863
Woodward, Inc.		1,480		48,677

				4,048,650

Commercial & Professional Services 3.6%
Avery Dennison Corp.		2,604		103,952

See financial notes 67

Schwab U.S. Mid-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Cintas Corp.		3,069		86,300
Clean Harbors, Inc. *		558		51,269
Copart, Inc. *		1,834		77,046
Corrections Corp. of America *		2,697		66,994
Covanta Holding Corp.		3,162		53,501
Equifax, Inc.		3,100		110,825
FTI Consulting, Inc. *		1,147		37,840
IHS, Inc., Class A *		1,147		96,004
KAR Auction Services, Inc. *		558		7,834
Manpower, Inc.		2,046		129,921
Pitney Bowes, Inc.		5,084		128,015
Quad Graphics, Inc. *		620		26,920
R.R. Donnelley & Sons Co.		5,022		93,510
Robert Half International, Inc.		3,627		115,701
Rollins, Inc.		1,891		37,101
The Dun & Bradstreet Corp.		1,240		100,192
Towers Watson & Co., Class A		1,302		76,558
Waste Connections, Inc.		2,852		82,680

				1,482,163

Consumer Durables & Apparel 3.1%
D.R. Horton, Inc.		6,758		80,015
Fossil, Inc. *		1,147		88,021
Hanesbrands, Inc. *		2,363		61,225
Harman International Industries, Inc.		1,736		84,439
Jarden Corp.		2,328		76,521
Leggett & Platt, Inc.		3,565		82,209
Lennar Corp., Class A		3,844		77,495
Mohawk Industries, Inc. *		1,395		81,064
Newell Rubbermaid, Inc.		7,099		137,295
NVR, Inc. *		155		112,818
Phillips-Van Heusen Corp.		1,519		91,155
Pulte Group, Inc. *		8,153		56,256
Tempur-Pedic International, Inc. *		1,674		78,578
Toll Brothers, Inc. *		3,286		69,860
Tupperware Brands Corp.		1,519		81,494

				1,258,445

Consumer Services 2.9%
Bally Technologies, Inc. *		1,302		50,296
Brinker International, Inc.		2,449		57,894
Career Education Corp. *		1,581		38,118
Chipotle Mexican Grill, Inc. *		775		189,875
Choice Hotels International, Inc.		775		29,930
DeVry, Inc.		1,550		84,087
Education Management Corp. *(a)		1,023		19,816
ITT Educational Services, Inc. *		775		58,784
MGM Resorts International *		7,781		108,467
Panera Bread Co., Class A *		775		90,481
Penn National Gaming, Inc. *		1,612		57,661
Service Corp. International		6,014		65,553
Strayer Education, Inc. (a)		341		46,867
Weight Watchers International, Inc.		837		51,166
Wendy’s/Arby’s Group, Inc., Class A		8,029		38,218
WMS Industries, Inc. *		1,426		56,741
Wyndham Worldwide Corp.		4,371		136,725

				1,180,679

Diversified Financials 2.8%
Affiliated Managers Group, Inc. *		1,271		135,679
CBOE Holdings, Inc.		248		7,338
ETRADE Financial Corp.		4,898		78,270
Eaton Vance Corp.		2,883		90,238
Federated Investors, Inc., Class B (a)		2,511		69,203
Green Dot Corp., Class A *(a)		217		11,330
Greenhill & Co., Inc.		713		51,215
Jefferies Group, Inc.		2,728		65,636
Legg Mason, Inc.		3,534		128,107
LPL Investment Holdings, Inc. *		372		12,503
MSCI, Inc., Class A *		2,914		103,447
Raymond James Financial, Inc.		2,418		92,658
SEI Investments Co.		3,813		87,737
The NASDAQ OMX Group, Inc. *		3,985		114,011
Waddell & Reed Financial, Inc., Class A		2,139		86,373

				1,133,745

Energy 7.3%
Arch Coal, Inc.		3,999		134,086
Cabot Oil & Gas Corp.		2,604		118,899
Cobalt International Energy, Inc. *		2,418		37,866
Concho Resources, Inc. *		2,325		247,659
Dresser-Rand Group, Inc. *		2,046		100,827
Dril-Quip, Inc. *		744		57,065
EXCO Resources, Inc.		4,154		85,032
Forest Oil Corp. *		2,759		97,917
Helmerich & Payne, Inc.		2,387		155,131
Massey Energy Co.		2,542		160,985
Oceaneering International, Inc. *		1,333		111,479
Oil States International, Inc. *		1,240		90,260
Patterson-UTI Energy, Inc.		3,880		106,079
Plains Exploration & Production Co. *		3,410		133,570
Pride International, Inc. *		3,906		162,138
Quicksilver Resources, Inc. *		2,914		45,138
Rowan Cos., Inc. *		3,100		132,277
SandRidge Energy, Inc. *		9,145		98,857
SEACOR Holdings, Inc.		527		49,944
SM Energy Co.		1,581		114,575
Southern Union Co.		2,852		81,339
Sunoco, Inc.		2,945		123,278
Superior Energy Services, Inc. *		1,953		74,819
Teekay Corp.		1,023		35,201
Tesoro Corp. *		3,410		81,090
Tidewater, Inc.		1,302		80,997
Unit Corp. *		1,147		68,247
Whiting Petroleum Corp. *		2,914		190,401

				2,975,156

Food & Staples Retailing 0.3%
BJ’s Wholesale Club, Inc. *		1,302		63,043
SUPERVALU, Inc.		5,177		44,677

				107,720

Food, Beverage & Tobacco 2.0%
Constellation Brands, Inc., Class A *		4,619		93,858
Corn Products International, Inc.		1,860		90,805
Dean Foods Co. *		4,402		46,485
Del Monte Foods Co.		4,712		89,198

68 See financial notes

Schwab U.S. Mid-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Flowers Foods, Inc.		2,232		59,371
Green Mountain Coffee Roasters, Inc. *		2,852		116,305
Hansen Natural Corp. *		1,767		101,691
Lancaster Colony Corp.		496		28,629
Ralcorp Holdings, Inc. *		1,364		88,455
Smithfield Foods, Inc. *		3,880		89,822
Tootsie Roll Industries, Inc.		558		15,959

				820,578

Health Care Equipment & Services 5.2%
Alere, Inc. *		2,077		80,255
Allscripts Healthcare Solutions, Inc. *		4,557		97,292
AMERIGROUP Corp. *		1,302		74,670
Beckman Coulter, Inc.		1,705		141,737
Community Health Systems, Inc. *		2,356		96,290
Coventry Health Care, Inc. *		3,627		109,535
Gen-Probe, Inc. *		1,198		75,330
Health Net, Inc. *		2,398		70,549
Hill-Rom Holdings, Inc.		1,519		57,828
Hologic, Inc. *		6,324		127,618
IDEXX Laboratories, Inc. *		1,426		110,800
Kinetic Concepts, Inc. *		1,519		74,386
LifePoint Hospitals, Inc. *		1,333		51,960
Lincare Holdings, Inc.		2,418		70,944
Masimo Corp.		1,302		39,242
MEDNAX, Inc. *		1,178		76,488
Omnicare, Inc.		2,883		82,540
Owens & Minor, Inc.		1,519		47,393
Patterson Cos., Inc.		2,511		83,817
Quality Systems, Inc.		496		39,630
ResMed, Inc. *		3,720		117,552
STERIS Corp.		1,302		44,073
Teleflex, Inc.		961		56,113
Tenet Healthcare Corp. *		11,718		84,135
Thoratec Corp. *		1,395		38,893
Universal Health Services, Inc., Class B		2,263		103,442
VCA Antech, Inc. *		2,077		52,008

				2,104,520

Household & Personal Products 0.8%
Alberto-Culver Co.		2,139		79,656
Energizer Holdings, Inc. *		1,705		113,945
Herbalife Ltd.		1,457		114,244

				307,845

Insurance 5.6%
Alleghany Corp. *		186		63,379
Allied World Assurance Co. Holdings Ltd.		1,116		68,868
American Financial Group, Inc.		1,939		67,148
American International Group, Inc. *(a)		3,100		114,886
American National Insurance Co.		341		27,713
Arch Capital Group Ltd. *		1,209		109,414
Arthur J. Gallagher & Co.		2,635		82,739
Aspen Insurance Holdings Ltd.		1,762		52,067
Assurant, Inc.		2,604		105,801
Assured Guaranty Ltd.		4,092		59,457
Axis Capital Holdings Ltd.		2,945		106,962
Brown & Brown, Inc.		2,790		72,931
Endurance Specialty Holdings Ltd.		1,163		57,673
Erie Indemnity Co., Class A		682		47,631
Fidelity National Financial, Inc., Class A		5,549		76,854
First American Financial Corp.		2,387		37,619
Hanover Insurance Group, Inc.		1,085		50,420
HCC Insurance Holdings, Inc.		2,821		87,846
Markel Corp. *		248		103,081
Mercury General Corp.		669		27,523
Old Republic International Corp.		5,859		73,237
OneBeacon Insurance Group Ltd., Class A		558		7,645
Platinum Underwriters Holdings Ltd.		992		41,366
ProAssurance Corp. *		775		49,081
Reinsurance Group of America, Inc.		1,798		108,581
RenaissanceRe Holdings Ltd.		1,333		89,338
StanCorp Financial Group, Inc.		1,178		54,188
Torchmark Corp.		1,984		129,456
Transatlantic Holdings, Inc.		1,612		82,099
Validus Holdings Ltd.		1,984		61,405
W.R. Berkley Corp.		3,162		94,702
Wesco Financial Corp.		62		24,252
White Mountains Insurance Group Ltd.		186		70,633

				2,305,995

Materials 7.9%
AbitibiBowater, Inc. *		1,798		50,326
AK Steel Holding Corp.		2,666		42,603
Albemarle Corp.		2,263		130,258
Allegheny Technologies, Inc.		2,294		153,881
AptarGroup, Inc.		1,587		76,446
Ashland, Inc.		1,736		97,737
Bemis Co., Inc.		2,635		86,560
Celanese Corp., Series A		3,844		159,334
Commercial Metals Co.		2,728		45,476
Compass Minerals International, Inc.		806		75,337
Cytec Industries, Inc.		1,178		66,946
Domtar Corp.		1,023		89,410
Eastman Chemical Co.		1,674		156,368
Greif, Inc., Class A		837		54,120
Huntsman Corp.		4,712		83,167
International Flavors & Fragrances, Inc.		1,922		109,458
Intrepid Potash, Inc. *		1,023		39,488
Martin Marietta Materials, Inc.		1,116		99,168
MeadWestvaco Corp.		4,185		122,830
Nalco Holding Co.		3,162		80,852
Owens-Illinois, Inc. *		4,061		123,820
Packaging Corp. of America		2,480		71,399
Reliance Steel & Aluminum Co.		1,860		102,914
Rock-Tenn Co., Class A (a)		992		68,101
Rockwood Holdings, Inc. *		1,271		59,165
Royal Gold, Inc.		1,305		64,754
RPM International, Inc.		3,131		71,919
Sealed Air Corp.		3,875		106,640
Silgan Holdings, Inc.		1,240		45,235
Smurfit-Stone Container Corp. *		2,294		88,181
Sonoco Products Co.		2,449		88,360
Steel Dynamics, Inc.		5,270		97,284
Temple-Inland, Inc.		2,604		60,908
The Scotts Miracle-Gro Co., Class A		1,085		60,944
The Valspar Corp.		2,232		84,861
Titanium Metals Corp. *		2,077		39,442

See financial notes 69

Schwab U.S. Mid-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Walter Energy, Inc.		1,302		157,555

				3,211,247

Media 2.4%
Charter Communications, Inc., Class A *		992		45,404
Clear Channel Outdoor Holdings, Inc., Class A *		930		13,708
DreamWorks Animation SKG, Inc., Class A *		1,488		41,099
Gannett Co., Inc.		5,766		95,197
John Wiley & Sons, Inc., Class A		1,305		62,392
Lamar Advertising Co., Class A *		1,395		54,084
Liberty Media - Starz, Series A *		1,271		89,224
Liberty Media Corp. - Capital, Series A *		1,860		134,962
Morningstar, Inc.		527		30,924
Regal Entertainment Group, Class A		1,891		28,251
Sirius XM Radio, Inc. *		94,333		170,743
The Interpublic Group of Cos., Inc. *		11,904		157,133
The Washington Post Co., Class B (a)		155		67,129

				990,250

Pharmaceuticals, Biotechnology & Life Sciences 4.1%
Alexion Pharmaceuticals, Inc. *		2,201		211,912
Amylin Pharmaceuticals, Inc. *		3,162		48,379
Bio-Rad Laboratories, Inc., Class A *		496		56,623
BioMarin Pharmaceutical, Inc. *		2,480		60,661
Bruker Corp. *		1,767		33,909
Charles River Laboratories International, Inc. *		1,612		58,741
Covance, Inc. *		1,612		90,965
Dendreon Corp. *		3,534		118,707
Endo Pharmaceuticals Holdings, Inc. *		2,573		91,393
Human Genome Sciences, Inc. *		4,588		114,838
Mettler-Toledo International, Inc. *		837		143,437
Onyx Pharmaceuticals, Inc. *		1,519		53,529
PerkinElmer, Inc.		2,962		78,493
Perrigo Co.		2,108		161,114
Pharmaceutical Product Development, Inc.		2,750		75,542
Regeneron Pharmaceuticals, Inc. *		1,674		60,716
Salix Pharmaceuticals Ltd. *		1,240		41,342
Talecris Biotherapeutics Holdings Corp. *		1,488		37,111
Techne Corp.		899		64,449
United Therapeutics Corp. *		1,209		81,523

				1,683,384

Real Estate 8.0%
Alexandria Real Estate Equities, Inc.		1,364		109,393
AMB Property Corp.		4,123		149,995
Apartment Investment & Management Co., Class A		2,852		73,154
BRE Properties, Inc.		1,550		73,640
Camden Property Trust		1,705		100,885
CB Richard Ellis Group, Inc., Class A *		7,192		180,088
Chimera Investment Corp.		24,676		106,354
Corporate Office Properties Trust		1,581		56,710
Developers Diversified Realty Corp.		4,712		67,382
Digital Realty Trust, Inc. (a)		2,232		131,286
Douglas Emmett, Inc.		3,007		56,381
Duke Realty Corp.		6,138		86,362
Essex Property Trust, Inc.		775		95,929
Federal Realty Investment Trust		1,519		127,869
Highwoods Properties, Inc.		1,736		58,902
Hospitality Properties Trust		3,007		69,161
Jones Lang LaSalle, Inc.		1,023		100,684
Liberty Property Trust		2,759		93,171
Mack-Cali Realty Corp.		1,953		66,285
MFA Financial, Inc.		6,851		58,028
National Retail Properties, Inc.		2,015		51,765
Nationwide Health Properties, Inc.		3,317		141,769
OMEGA Healthcare Investors, Inc.		2,387		57,216
Piedmont Office Realty Trust, Inc., Class A		3,224		64,480
Rayonier, Inc.		1,984		121,679
Realty Income Corp.		2,883		103,701
Regency Centers Corp.		2,009		90,907
Senior Housing Properties Trust		3,100		76,074
SL Green Realty Corp.		1,953		147,901
Taubman Centers, Inc.		1,364		75,675
The Macerich Co.		3,193		161,694
The St. Joe Co. *(a)		2,232		59,773
UDR, Inc.		4,433		107,811
Washington Real Estate Investment Trust		1,550		48,422
Weingarten Realty Investors		2,914		75,385

				3,245,911

Retailing 4.6%
Aaron’s, Inc.		1,767		41,595
Abercrombie & Fitch Co., Class A		2,170		124,493
Aeropostale, Inc. *		2,294		59,506
American Eagle Outfitters, Inc.		4,774		73,281
AutoNation, Inc. *(a)		1,116		37,542
Big Lots, Inc. *		1,904		78,121
CarMax, Inc. *		5,456		192,979
Chico’s FAS, Inc.		4,340		59,632
Dick’s Sporting Goods, Inc. *		2,186		81,188
Foot Locker, Inc.		3,782		75,148
GameStop Corp., Class A *		3,720		74,214
Guess?, Inc.		1,612		73,008
J. Crew Group, Inc. *		1,550		66,836
LKQ Corp. *		3,503		83,231
PetSmart, Inc.		2,914		119,095
RadioShack Corp.		3,038		44,963
Signet Jewelers Ltd. *		2,108		92,478
Tiffany & Co.		3,100		190,805
Tractor Supply Co.		1,798		93,622
Urban Outfitters, Inc. *		3,193		122,547
Williams-Sonoma, Inc.		2,356		85,028

				1,869,312

Semiconductors & Semiconductor Equipment 3.2%
Advanced Micro Devices, Inc. *		13,733		126,481
Atmel Corp. *		11,284		165,649
Lam Research Corp. *		3,007		165,084
LSI Corp. *		15,097		94,960
MEMC Electronic Materials, Inc. *		5,549		75,300
National Semiconductor Corp.		5,828		90,334

70 See financial notes

Schwab U.S. Mid-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Novellus Systems, Inc. *		2,263		90,430
ON Semiconductor Corp. *		10,416		116,138
PMC-Sierra, Inc. *		5,549		43,837
Rambus, Inc. *		2,728		56,060
Silicon Laboratories, Inc. *		1,085		49,259
Skyworks Solutions, Inc. *		4,371		157,094
Varian Semiconductor Equipment Associates, Inc. *		1,860		88,741

				1,319,367

Software & Services 6.1%
Alliance Data Systems Corp. *		1,333		104,960
ANSYS, Inc. *		2,232		125,706
AOL, Inc. *		2,573		53,698
Booz Allen Hamilton Holding Corp. *		372		6,878
Broadridge Financial Solutions, Inc.		2,821		64,657
Cadence Design Systems, Inc. *		6,603		65,700
Compuware Corp. *		5,456		61,435
Concur Technologies, Inc. *		1,128		58,690
CoreLogic, Inc.		2,697		50,299
DST Systems, Inc.		899		45,849
Equinix, Inc. *		1,116		96,467
FactSet Research Systems, Inc.		1,054		110,544
FleetCor Technologies, Inc. *		310		9,917
Gartner, Inc. *		2,046		77,175
Genpact Ltd. *		2,542		35,461
Global Payments, Inc.		2,015		96,700
IAC/InterActiveCorp *		2,116		65,744
Informatica Corp. *		2,263		106,384
Jack Henry & Associates, Inc.		2,046		65,288
Lender Processing Services, Inc.		2,263		77,100
MICROS Systems, Inc., Class A *		2,015		95,995
NeuStar, Inc., Class A *		1,798		45,399
Novell, Inc. *		8,432		49,580
Nuance Communications, Inc. *		5,921		110,486
Parametric Technology Corp. *		2,821		66,858
Quest Software, Inc. *		1,519		40,694
Rackspace Hosting, Inc. *		2,542		93,825
Rovi Corp. *		2,542		140,878
Solera Holdings, Inc.		1,736		88,675
Synopsys, Inc. *		3,689		102,259
TIBCO Software, Inc. *		4,092		100,745
Total System Services, Inc.		4,805		85,289
WebMD Health Corp. *		1,426		82,708

				2,482,043

Technology Hardware & Equipment 4.9%
Anixter International, Inc.		713		51,065
Arrow Electronics, Inc. *		2,945		115,444
Avnet, Inc. *		3,720		127,261
AVX Corp.		1,240		19,778
Brocade Communications Systems, Inc. *		11,067		70,497
Diebold, Inc.		1,612		56,678
EchoStar Corp., Class A *		961		33,347
FLIR Systems, Inc.		3,875		125,163
Ingram Micro, Inc., Class A *		3,813		75,993
Itron, Inc. *		1,023		58,014
Jabil Circuit, Inc.		4,929		105,629
JDS Uniphase Corp. *		5,332		131,540
Lexmark International, Inc., Class A *		1,953		73,296
Molex, Inc.		3,193		89,181
National Instruments Corp.		2,325		72,377
NCR Corp. *		3,875		74,013
Polycom, Inc. *		2,108		100,762
QLogic Corp. *		2,666		48,148
Riverbed Technology, Inc. *		3,596		148,479
Tellabs, Inc.		8,618		46,451
Teradata Corp. *		4,092		195,679
Trimble Navigation Ltd. *		2,945		144,747
Zebra Technologies Corp., Class A *		1,395		52,061

				2,015,603

Telecommunication Services 1.0%
Level 3 Communications, Inc. *		40,486		56,680
MetroPCS Communications, Inc. *		6,107		87,941
SBA Communications Corp., Class A *		2,821		118,736
Telephone & Data Systems, Inc.		2,294		77,193
tw telecom, Inc. *		3,689		68,615
United States Cellular Corp. *		372		18,593

				427,758

Transportation 2.1%
AMR Corp. *		8,122		54,742
Hertz Global Holdings, Inc. *		4,495		68,369
J.B. Hunt Transport Services, Inc.		2,325		96,743
JetBlue Airways Corp. *		5,983		34,103
Kansas City Southern *		2,511		135,192
Kirby Corp. *		1,302		72,053
Knight Transportation, Inc.		1,426		26,538
Landstar System, Inc.		1,268		56,388
Ryder System, Inc.		1,333		63,758
United Continental Holdings, Inc. *		7,750		186,310
UTI Worldwide, Inc.		2,480		49,352
Werner Enterprises, Inc.		1,240		29,202

				872,750

Utilities 6.4%
AGL Resources, Inc.		1,891		71,877
Alliant Energy Corp.		2,697		106,208
American Water Works Co., Inc.		4,337		120,308
Aqua America, Inc.		3,379		76,095
Atmos Energy Corp.		2,201		74,438
Cleco Corp.		1,457		47,134
CMS Energy Corp.		5,642		108,665
DPL, Inc.		2,914		75,822
Energen Corp.		1,798		109,858
Great Plains Energy, Inc.		3,286		63,091
Hawaiian Electric Industries, Inc.		2,263		54,652
IDACORP, Inc.		1,240		46,798
Integrys Energy Group, Inc.		1,891		92,602
ITC Holdings Corp.		1,271		87,127
MDU Resources Group, Inc.		4,302		92,364
National Fuel Gas Co.		1,736		126,554
New Jersey Resources Corp.		1,058		44,256
Nicor, Inc.		1,085		57,223
NiSource, Inc.		6,789		130,077
NSTAR		2,542		114,771
NV Energy, Inc.		5,704		83,792

See financial notes 71

Schwab U.S. Mid-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
OGE Energy Corp.		2,387		114,815
Pepco Holdings, Inc.		5,456		102,191
Piedmont Natural Gas Co., Inc.		1,643		48,140
Pinnacle West Capital Corp.		2,666		112,585
Portland General Electric Co.		1,829		42,835
Questar Corp.		4,278		76,448
TECO Energy, Inc.		4,929		89,264
UGI Corp.		2,715		86,581
Vectren Corp.		1,953		51,403
Westar Energy, Inc.		2,697		70,122
WGL Holdings, Inc.		1,209		45,942

				2,624,038

Total Common Stock
(Cost $39,713,195)				40,777,641




Other Investment Company 0.0% of net assets

Money Fund 0.0%
State Street Institutional Liquid Reserves Fund - Institutional Class		15,205		15,205

Total Other Investment Company
(Cost $15,205)				15,205



End of Investments



Collateral Invested for Securities on Loan 0.7% of net assets


State Street Navigator Securities Lending Prime Portfolio		273,842		273,842

Total Collateral Invested for Securities on Loan
(Cost $273,842)				273,842



End of Collateral Invested for Securities on Loan

At 2/28/11, the tax basis cost of the fund’s investments was $39,728,625 and the unrealized appreciation and depreciation were $1,415,140 and ($350,919), respectively, with a net unrealized appreciation of $1,064,221.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.

72 See financial notes

Schwab U.S. Mid-Cap ETF

Statement of

Assets and Liabilities

As of February 28, 2011 (unaudited)



Assets

Investments, at value including securities on loan of $267,574 (cost $39,728,400)		$40,792,846
Collateral invested for securities on loan		273,842
Receivables:
Investments sold		108,779
Fund shares sold		5,210,336
Dividends		28,261
Income from securities on loan		501
Interest	+	6

Total assets		46,414,571

Liabilities

Collateral held for securities on loan		273,842
Payables:
Investments bought		5,302,906
Investment adviser fees	+	426

Total liabilities		5,577,174

Net Assets

Total assets		46,414,571
Total liabilities	−	5,577,174

Net assets		$40,837,397

Net Assets by Source
Capital received from investors		39,740,211
Net investment income not yet distributed		49,630
Net realized capital losses		(16,890	)
Net unrealized capital gains		1,064,446

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$40,837,397

1,550,001

$26.35

See financial notes 73

Schwab U.S. Mid-Cap ETF

Statement of

Operations

January 12, 2011* through February 28, 2011 (unaudited)



Investment Income

Dividends		$52,371
Interest		8
Securities on loan	+	501

Total investment income		52,880

Expenses

Investment adviser fees		3,250

Total expenses	−	3,250

Net investment income		49,630

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(16,890	)
Net unrealized gains on investments	+	1,064,446

Net realized and unrealized gains		1,047,556

Net increase in net assets resulting from operations		$1,097,186


*		Commencement of operations.

74 See financial notes

Schwab U.S. Mid-Cap ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on
January 12, 2011, it has no prior report period.
Figures for the current period are unaudited.


*1/12/11-2/28/11**
Net investment income		$49,630
Net realized losses		(16,890	)
Net unrealized gains	+	1,064,446

Net increase in net assets resulting from operations		1,097,186

Transactions in Fund Shares


		*1/12/11-2/28/11**
			SHARES	VALUE
Shares Sold			1,550,001	$39,740,211
Shares Redeemed	+		—	—

Net transactions in fund shares			1,550,001	$39,740,211

Shares Outstanding and Net Assets

		*1/12/11-2/28/11**
			SHARES	NET ASSETS
Beginning of period			—	$—
Total increase	+		1,550,001	40,837,397

End of period			1,550,001	$40,837,397


Net investment income not yet distributed				$49,630


*		Commencement of operations.

See financial notes 75

Schwab U.S. Small-Cap ETF™

Financial Statements

Financial Highlights


	9/1/10–			10/30/09¹–
	2/28/11*			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		26.48			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.22			0.23
Net realized and unrealized gains (losses)		9.93			1.45	²

Total from investment operations		10.15			1.68
Less distributions:
Distributions from net investment income		(0.20	)		(0.20	)

Net asset value at end of period		36.43			26.48

Total return (%)		38.41	³		6.67	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.13	⁴		0.14	^4,5
Gross operating expenses		0.13	⁴		0.14	⁴
Net investment income (loss)		1.48	⁴		1.05	⁴
Portfolio turnover rate⁶		4	³		8	³
Net assets, end of period ($ x 1,000)		489,972			193,310

* Unaudited.

¹ Commencement of operations.

² The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of sales and repurchases of fund shares in relation to fluctuating market values.

³ Not annualized.

⁴ Annualized.

⁵ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended August 31, 2010 is a blended rate.

⁶ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

76 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings as of February 28, 2011 (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		422,364,477		489,011,632
	0	.1%	Other Investment Company		534,928		534,928
		—%	Corporate Bond		3,120		1,994


	99	.9%	Total Investments		422,902,525		489,548,554
	1	.2%	Collateral Invested for Securities on Loan		5,735,648		5,735,648
	(1	.1)%	Other Assets and Liabilities, Net				(5,311,838	)


	100	.0%	Net Assets				489,972,364


	Number		Value
Security	of Shares		($)

Common Stock 99.8% of net assets

Automobiles & Components 1.3%
American Axle & Manufacturing Holdings, Inc. *		17,883		239,096
ArvinMeritor, Inc. *		25,565		458,125
Cooper Tire & Rubber Co.		17,271		405,178
Dana Holding Corp. *		39,405		743,966
Dorman Products, Inc. *		3,614		125,297
Drew Industries, Inc.		5,207		120,438
Exide Technologies *		21,047		250,459
Federal-Mogul Corp. *		7,076		148,667
Fuel Systems Solutions, Inc. *		4,338		126,323
Gentex Corp.		39,040		1,182,131
Modine Manufacturing Co. *		13,460		199,208
Superior Industries International, Inc.		7,074		140,631
Tenneco, Inc. *		16,558		660,333
Tesla Motors, Inc. *(a)		11,298		269,909
Thor Industries, Inc.		10,250		340,710
Tower International, Inc. *		1,345		23,269
WABCO Holdings, Inc. *		18,074		1,056,064
Winnebago Industries, Inc. *		8,442		122,071

				6,611,875

Banks 6.2%
1st Source Corp.		4,110		80,433
Arrow Financial Corp.		3,242		81,180
Associated Banc-Corp		49,019		709,305
Astoria Financial Corp.		25,029		350,907
BancFirst Corp.		1,982		83,323
BancorpSouth, Inc. (a)		22,094		352,178
Bank Mutual Corp.		11,661		53,874
Bank of Hawaii Corp.		13,499		636,613
Bank of the Ozarks, Inc.		3,891		167,508
BankFinancial Corp.		5,755		50,356
BankUnited, Inc. *		7,398		209,733
Beneficial Mutual Bancorp, Inc. *		11,667		105,003
Berkshire Hills Bancorp, Inc.		4,110		92,722
Boston Private Financial Holdings, Inc.		21,550		152,790
Brookline Bancorp, Inc.		16,194		168,256
Camden National Corp.		1,954		65,733
Capital City Bank Group, Inc.		3,627		45,591
CapitalSource, Inc.		84,215		638,350
Cardinal Financial Corp.		8,359		93,036
Cathay General Bancorp		22,632		401,039
Centerstate Banks, Inc.		7,846		56,884
Chemical Financial Corp.		7,364		148,164
Citizens Republic Bancorp, Inc. *		111,754		93,974
City Holding Co.		4,668		159,879
Clifton Savings Bancorp, Inc.		3,069		34,987
CoBiz Financial, Inc.		12,391		80,789
Columbia Banking System, Inc.		11,099		220,204
Community Bank System, Inc.		9,558		240,479
Community Trust Bancorp, Inc.		4,082		116,786
CVB Financial Corp.		26,197		219,007
Danvers Bancorp, Inc.		5,505		120,229
Dime Community Bancshares		9,150		142,008
Doral Financial Corp. *		48,239		63,675
East West Bancorp, Inc.		41,974		974,636
ESSA Bancorp, Inc.		3,627		47,151
F.N.B. Corp.		32,312		324,089
First Bancorp		4,918		72,491
First Bancorp Puerto Rico *(a)		2,227		10,333
First Busey Corp.		18,699		94,804
First Citizens BancShares, Inc., Class A		1,649		333,098
First Commonwealth Financial Corp.		27,073		177,328
First Community Bancshares, Inc.		4,668		57,463
First Financial Bancorp		16,776		284,018
First Financial Bankshares, Inc. (a)		5,735		287,897
First Financial Corp.		3,273		106,078
First Financial Holdings, Inc.		4,918		52,426
First Interstate BancSystem, Inc.		4,152		59,311
First Merchants Corp.		7,371		65,528
First Midwest Bancorp, Inc.		21,105		254,737
First Niagara Financial Group, Inc.		59,043		854,943
FirstMerit Corp.		30,497		519,974
Flagstar Bancorp, Inc. *		103,930		181,877
Flushing Financial Corp.		8,471		121,305
Fulton Financial Corp.		55,962		609,426
Glacier Bancorp, Inc.		19,926		311,443
Great Southern Bancorp, Inc.		2,538		54,389
Hancock Holding Co.		9,014		312,515
Heartland Financial USA, Inc.		4,110		69,747
Home Bancshares, Inc.		7,355		165,708
Hudson Valley Holding Corp.		3,861		82,317
IBERIABANK Corp.		7,562		433,227
Independent Bank Corp.		6,063		164,853
International Bancshares Corp.		16,479		314,584
Investors Bancorp, Inc. *		13,790		186,717
Kearny Financial Corp.		6,063		59,539
Lakeland Financial Corp.		4,111		92,169
MB Financial, Inc.		14,816		304,765
Meridian Interstate Bancorp, Inc. *		3,069		39,897

See financial notes 77

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
MGIC Investment Corp. *		56,827		488,144
Nara Bancorp, Inc. *		8,420		88,242
National Penn Bancshares, Inc.		35,581		282,513
NBT Bancorp, Inc.		9,988		222,233
NewAlliance Bancshares, Inc.		27,758		434,135
Northfield Bancorp, Inc.		6,034		80,795
Northwest Bancshares, Inc.		13,209		160,357
Ocwen Financial Corp. *		20,778		219,831
Old National Bancorp		24,621		275,755
Oriental Financial Group, Inc.		13,865		165,964
Oritani Financial Corp.		4,909		63,179
Orrstown Financial Services, Inc.		1,970		54,175
PacWest Bancorp		8,694		180,053
Park National Corp. (a)		3,367		221,650
Pinnacle Financial Partners, Inc. *		9,558		152,450
Popular, Inc. *		293,748		954,681
PrivateBancorp, Inc.		17,330		248,166
Prosperity Bancshares, Inc.		12,998		530,578
Provident Financial Services, Inc.		16,727		247,727
Provident New York Bancorp		10,897		103,304
Radian Group, Inc.		38,477		271,648
Renasant Corp.		7,054		113,358
Republic Bancorp, Inc., Class A		2,994		51,317
Rockville Financial, Inc.		4,110		66,541
Roma Financial Corp.		5,480		57,540
S&T Bancorp, Inc.		7,913		176,460
S.Y. Bancorp, Inc.		3,349		83,055
Sandy Spring Bancorp, Inc.		6,862		130,996
SCBT Financial Corp.		3,550		114,985
Signature Bank *		11,417		592,428
Simmons First National Corp., Class A		4,389		126,315
Southside Bancshares, Inc.		4,642		105,884
StellarOne Corp.		6,593		97,115
Sterling Bancorp		7,574		76,043
Sterling Bancshares, Inc.		28,570		258,558
Suffolk Bancorp		2,790		57,446
Susquehanna Bancshares, Inc.		36,633		350,211
SVB Financial Group *		11,660		631,739
Synovus Financial Corp.		187,244		477,472
TCF Financial Corp.		37,987		616,529
Territorial Bancorp, Inc.		3,836		75,914
Texas Capital Bancshares, Inc. *		10,546		266,181
The PMI Group, Inc. *		40,980		121,301
Tompkins Financial Corp.		2,422		99,302
TowneBank (a)		8,115		120,832
TriCo Bancshares		4,360		70,763
TrustCo Bank Corp.		23,799		143,508
Trustmark Corp.		15,928		373,512
UMB Financial Corp.		9,177		365,979
Umpqua Holdings Corp.		32,086		367,064
Union First Market Bankshares Corp.		5,416		62,338
United Bankshares, Inc.		12,173		348,635
United Community Banks, Inc. *		23,463		32,144
United Financial Bancorp, Inc.		4,389		68,512
Univest Corp. of Pennsylvania		4,921		88,775
Valley National Bancorp		46,002		627,007
ViewPoint Financial Group		4,382		58,193
Washington Federal, Inc.		31,807		565,210
Washington Trust Bancorp, Inc.		4,082		93,804
Webster Financial Corp.		20,713		480,127
WesBanco, Inc.		7,354		153,257
Westamerica Bancorp		8,160		420,893
Western Alliance Bancorp *		20,999		170,302
Westfield Financial, Inc.		8,171		74,193
Whitney Holding Corp.		26,998		382,832
Wilmington Trust Corp.		18,023		80,923
Wilshire Bancorp, Inc.		6,569		43,421
Wintrust Financial Corp.		9,761		327,774
WSFS Financial Corp.		2,265		106,047

				30,134,093

Capital Goods 10.2%
3D Systems Corp. *		5,457		267,120
A.O. Smith Corp.		9,754		394,062
A123 Systems, Inc. *(a)		21,530		204,104
AAON, Inc.		4,110		126,177
AAR CORP. *		11,354		309,851
Accuride Corp. *		12,330		172,497
Aceto Corp.		8,667		68,729
Actuant Corp., Class A		19,181		542,822
Acuity Brands, Inc.		12,171		687,905
Advanced Battery Technologies, Inc. *(a)		17,503		67,912
Aerovironment, Inc. *		4,934		143,135
Aircastle Ltd.		14,851		179,400
Albany International Corp., Class A		7,552		183,967
Altra Holdings, Inc. *		7,912		171,137
Ameresco, Inc., Class A *		2,445		35,257
American Railcar Industries, Inc. *		2,500		50,525
American Science & Engineering, Inc.		2,690		252,860
American Superconductor Corp. *(a)		12,569		333,330
American Woodmark Corp.		2,790		55,661
Ameron International Corp.		2,421		171,068
Ampco-Pittsburgh Corp.		2,261		59,962
Apogee Enterprises, Inc.		8,163		111,588
Applied Industrial Technologies, Inc.		10,893		349,012
Armstrong World Industries, Inc.		5,015		208,825
Astec Industries, Inc. *		5,255		180,404
AZZ, Inc.		3,337		142,356
Badger Meter, Inc.		4,364		171,549
Barnes Group, Inc.		12,953		275,640
BE Aerospace, Inc. *		27,000		910,440
Beacon Roofing Supply, Inc. *		12,796		271,403
Belden, Inc.		13,188		483,076
Blount International, Inc. *		13,496		205,139
Brady Corp., Class A		13,286		474,842
Briggs & Stratton Corp.		14,056		282,947
Broadwind Energy, Inc. *		15,343		24,549
Builders FirstSource, Inc. *		27,131		64,843
Capstone Turbine Corp. *(a)		72,172		109,701
Carlisle Cos., Inc.		17,083		734,740
Cascade Corp.		2,494		121,857
Ceradyne, Inc. *		7,106		271,662
Chart Industries, Inc. *		8,442		383,182
CIRCOR International, Inc.		4,947		196,149
CLARCOR, Inc.		14,370		591,182
Colfax Corp. *		7,042		156,192
Columbus McKinnon Corp. *		5,505		95,071
Comfort Systems USA, Inc.		10,492		139,229
Crane Co.		14,334		677,138
Cubic Corp.		4,640		233,438
Curtiss-Wright Corp.		13,181		486,379
DigitalGlobe, Inc. *		7,915		255,496

78 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Douglas Dynamics, Inc.		5,390		86,240
Ducommun, Inc.		2,994		66,976
Dycom Industries, Inc. *		10,584		182,680
Dynamic Materials Corp.		3,627		95,862
EMCOR Group, Inc. *		18,895		601,995
Encore Wire Corp.		5,503		129,100
Ener1, Inc. *(a)		21,256		78,435
Energy Conversion Devices, Inc. *(a)		11,389		44,645
Energy Recovery, Inc. *		12,643		42,860
EnerSys *		13,012		461,926
EnPro Industries, Inc. *		5,756		228,398
ESCO Technologies, Inc.		7,391		283,001
Esterline Technologies Corp. *		8,608		616,075
Federal Signal Corp.		17,581		113,749
Force Protection, Inc. *		21,656		109,146
Franklin Electric Co., Inc.		5,505		233,962
FreightCar America, Inc. *		3,349		94,174
FuelCell Energy, Inc. *		27,568		48,244
Furmanite Corp. *		10,824		78,690
Gardner Denver, Inc.		14,795		1,082,106
GATX Corp.		11,403		395,570
GenCorp, Inc. *		14,272		74,072
Generac Holdings, Inc. *		7,831		143,542
General Cable Corp. *		14,641		635,712
GeoEye, Inc. *		6,321		281,601
Gibraltar Industries, Inc. *		8,445		91,459
Global Power Equipment Group, Inc. *		4,349		97,722
Graco, Inc.		16,999		692,029
GrafTech International Ltd. *		34,253		685,403
Graham Corp.		2,994		63,563
Granite Construction, Inc.		9,481		270,208
Great Lakes Dredge & Dock Co.		16,455		129,501
Griffon Corp. *		14,116		170,239
GT Solar International, Inc. *		18,367		196,343
H&E Equipment Services, Inc. *		7,296		114,401
Harsco Corp.		23,134		790,489
HEICO Corp., Class A		7,842		306,779
Hexcel Corp. *		27,232		505,154
Houston Wire & Cable Co.		4,901		65,673
IDEX Corp.		22,727		937,261
II-VI, Inc. *		7,542		386,075
InsituForm Technologies, Inc., Class A *		10,826		279,744
Interline Brands, Inc. *		9,430		206,611
John Bean Technologies Corp.		8,163		154,852
Kaman Corp.		7,355		234,404
Kaydon Corp.		9,259		363,323
Kennametal, Inc.		23,144		890,118
L.B. Foster Co. *		2,791		117,222
Ladish Co., Inc. *		4,361		236,541
Lawson Products, Inc.		807		19,424
Layne Christensen Co. *		5,755		192,044
Lennox International, Inc.		14,556		705,966
Lindsay Corp.		3,356		236,967
MasTec, Inc. *		15,989		297,715
Michael Baker Corp. *		2,259		71,091
Moog, Inc., Class A *		11,677		530,253
Mueller Industries, Inc.		10,825		367,833
Mueller Water Products, Inc., Class A		41,444		168,263
MYR Group, Inc. *		4,873		109,935
NACCO Industries, Inc., Class A		1,614		201,024
Nordson Corp.		8,887		967,883
Northwest Pipe Co. *		2,540		60,300
Orbital Sciences Corp. *		16,756		298,089
Orion Marine Group, Inc. *		7,831		96,713
Otter Tail Corp.		8,541		192,343
Pike Electric Corp. *		5,197		50,515
Polypore International, Inc. *		6,741		393,944
Powell Industries, Inc. *		2,232		83,454
Primoris Services Corp.		5,785		49,462
Quanex Building Products Corp.		10,770		203,445
Raven Industries, Inc.		5,148		279,330
RBC Bearings, Inc. *		6,027		218,117
Regal-Beloit Corp.		10,760		784,942
Robbins & Myers, Inc.		10,807		460,702
RSC Holdings, Inc. *		12,488		170,211
Rush Enterprises, Inc., Class A *		9,558		179,404
Sauer-Danfoss, Inc. *		3,070		93,727
Seaboard Corp.		111		257,542
Simpson Manufacturing Co., Inc.		10,774		311,692
Snap-On, Inc.		16,678		957,818
Standex International Corp.		3,766		129,061
Sterling Construction Co., Inc. *		4,639		60,771
Sun Hydraulics Corp.		3,552		128,227
SunPower Corp., Class A *(a)		27,446		468,503
TAL International Group, Inc.		3,552		123,894
Taser International, Inc. *		20,471		77,380
Tecumseh Products Co., Class A *		4,947		59,512
Teledyne Technologies, Inc. *		10,077		527,732
Tennant Co.		4,918		199,917
Terex Corp. *		30,249		1,020,904
Textainer Group Holdings Ltd.		5,198		183,749
The Gorman-Rupp Co.		4,130		154,173
The Greenbrier Cos., Inc. *		6,566		164,019
The Keyw Holding Corp. *		2,537		36,152
The Manitowoc Co., Inc.		37,939		751,572
The Middleby Corp. *		5,380		482,425
The Toro Co.		8,893		554,923
Thomas & Betts Corp. *		14,875		823,926
Titan International, Inc.		9,440		226,749
Titan Machinery, Inc. *		4,360		112,183
TransDigm Group, Inc. *		10,760		864,889
Tredegar Corp.		6,462		126,138
Trex Co., Inc. *		4,082		122,256
TriMas Corp. *		4,604		94,704
Trinity Industries, Inc.		22,435		698,850
Triumph Group, Inc.		5,480		474,513
Tutor Perini Corp.		9,151		217,977
United Rentals, Inc. *		17,011		527,001
Universal Forest Products, Inc.		5,440		185,504
USG Corp. *		18,968		325,112
Valmont Industries, Inc.		6,197		632,590
Vicor Corp.		6,035		91,913
Wabash National Corp. *		19,424		202,398
Wabtec Corp.		13,539		768,474
Watsco, Inc.		7,263		469,045
Watts Water Technologies, Inc., Class A		8,156		318,981
WESCO International, Inc. *		11,900		692,818
Woodward, Inc.		16,459		541,337

				49,929,805

See financial notes 79

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Commercial & Professional Services 2.8%
ABM Industries, Inc.		12,114		322,596
Acacia Research - Acacia Technologies *		9,825		288,069
Acco Brands Corp. *		16,247		138,912
Administaff, Inc.		6,743		201,818
American Reprographics Co. *		10,102		89,908
APAC Customer Services, Inc. *		9,444		55,342
CBIZ, Inc. *		11,319		80,139
CDI Corp.		3,628		53,985
Cenveo, Inc. *		15,083		84,314
Clean Harbors, Inc. *		6,576		604,203
Consolidated Graphics, Inc. *		2,791		152,221
CoStar Group, Inc. *		6,079		344,497
Courier Corp.		3,270		46,663
CRA International, Inc. *		3,069		79,610
Deluxe Corp.		14,906		380,848
EnergySolutions, Inc.		25,040		165,765
EnerNOC, Inc. *		5,230		100,834
Ennis, Inc.		7,552		122,720
Exponent, Inc. *		3,828		150,632
FTI Consulting, Inc. *		13,261		437,480
Fuel Tech, Inc. *		5,474		40,946
G&K Services, Inc., Class A		5,227		169,459
Healthcare Services Group, Inc.		17,032		302,659
Heidrick & Struggles International, Inc.		4,947		134,707
Herman Miller, Inc.		15,741		424,063
Higher One Holdings, Inc. *		8,075		151,729
Hill International, Inc. *		5,474		29,012
HNI Corp.		10,344		328,215
Huron Consulting Group, Inc. *		6,064		168,700
ICF International, Inc. *		4,922		111,582
Innerworkings, Inc. *		7,813		63,832
Interface, Inc., Class A		15,166		252,817
KAR Auction Services, Inc. *		6,740		94,630
Kelly Services, Inc., Class A *		8,163		171,586
Kforce, Inc. *		10,517		187,834
Kimball International, Inc., Class B		8,070		57,781
Knoll, Inc.		14,041		290,227
Korn/Ferry International *		13,483		308,221
M&F Worldwide Corp. *		3,050		75,670
McGrath Rentcorp		7,077		194,688
Metalico, Inc. *		10,519		66,901
Mine Safety Appliances Co.		8,927		322,532
Mistras Group, Inc. *		4,407		66,502
Mobile Mini, Inc. *		10,340		235,132
Monster Worldwide, Inc. *		36,334		623,128
Navigant Consulting, Inc. *		13,548		127,216
On Assignment, Inc. *		9,339		98,059
Quad Graphics, Inc. *		7,532		327,039
Resources Connection, Inc.		13,019		251,136
Rollins, Inc.		21,889		429,462
Schawk, Inc.		3,552		64,185
School Specialty, Inc. *		4,640		71,224
SFN Group, Inc. *		13,587		187,908
Standard Parking Corp. *		4,405		79,995
Steelcase, Inc., Class A		24,252		235,487
Swisher Hygiene, Inc. *		16,445		99,328
Sykes Enterprises, Inc. *		11,908		221,489
Team, Inc. *		5,505		142,745
Tetra Tech, Inc. *		17,354		407,819
The Advisory Board Co. *		4,390		224,592
The Brink’s Co.		13,253		409,120
The Corporate Executive Board Co.		9,537		382,148
The Geo Group, Inc. *		19,419		493,825
TrueBlue, Inc. *		12,924		208,723
United Stationers, Inc. *		6,456		435,263
US Ecology, Inc.		4,947		83,159
Viad Corp.		5,756		131,928
VSE Corp.		1,112		30,146

				13,915,105

Consumer Durables & Apparel 3.5%
American Greetings Corp., Class A		10,825		234,361
Beazer Homes USA, Inc. *		21,374		99,389
Blyth, Inc.		1,177		40,453
Brookfield Homes Corp. *(a)		2,790		40,650
Brunswick Corp.		25,055		577,017
Callaway Golf Co.		17,342		134,227
Carter’s, Inc. *		16,776		480,800
Cavco Industries, Inc. *		1,639		66,904
Columbia Sportswear Co.		4,150		260,579
Crocs, Inc. *		24,285		428,630
CSS Industries, Inc.		2,176		38,080
Deckers Outdoor Corp. *		11,029		972,978
Eastman Kodak Co. *		76,934		261,576
Ethan Allen Interiors, Inc.		7,832		172,696
Fossil, Inc. *		13,325		1,022,561
Furniture Brands International, Inc. *		10,590		46,384
G-III Apparel Group Ltd. *		4,573		179,810
Hanesbrands, Inc. *		26,496		686,511
Helen of Troy Ltd. *		8,192		228,803
Hovnanian Enterprises, Inc., Class A *(a)		17,267		70,449
Iconix Brand Group, Inc. *		20,206		446,553
iRobot Corp. *		6,726		193,171
JAKKS Pacific, Inc. *		8,191		152,680
Jarden Corp.		26,132		858,959
K-Swiss, Inc., Class A *		7,634		76,416
KB HOME		21,890		290,043
Kenneth Cole Productions, Inc., Class A *		2,232		29,016
La-Z-Boy, Inc. *		15,074		151,343
Leapfrog Enterprises, Inc. *		12,789		55,504
Liz Claiborne, Inc. *		25,935		133,306
M.D.C Holdings, Inc.		10,518		276,098
M/I Homes, Inc. *		5,198		69,393
MaidenForm Brands, Inc. *		6,303		171,063
Marine Products Corp. *		3,090		22,557
Meritage Homes Corp. *		8,749		225,812
Movado Group, Inc. *		5,197		73,122
National Presto Industries, Inc.		1,345		170,196
Oxford Industries, Inc.		4,110		99,133
Perry Ellis International, Inc. *		3,090		89,734
Polaris Industries, Inc.		9,316		702,892
Pool Corp.		14,319		357,402
Quiksilver, Inc. *		38,537		166,094
RC2 Corp. *		6,035		131,020
Sealy Corp. *		14,938		43,021
Skechers U.S.A., Inc., Class A *		9,425		195,852
Skyline Corp.		1,953		39,236

80 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Smith & Wesson Holding Corp. *		18,023		71,912
Standard Pacific Corp. *		31,496		125,984
Steven Madden Ltd. *		7,091		305,906
Tempur-Pedic International, Inc. *		18,373		862,429
The Jones Group, Inc.		24,586		326,994
The Ryland Group, Inc.		12,144		210,820
The Timberland Co., Class A *		12,211		451,074
The Warnaco Group, Inc. *		12,434		730,000
True Religion Apparel, Inc. *		7,117		169,171
Tupperware Brands Corp.		17,515		939,680
Under Armour, Inc., Class A *		10,793		714,820
UniFirst Corp.		4,135		233,214
Universal Electronics, Inc. *		3,892		106,057
Vera Bradley, Inc. *		3,060		105,111
Volcom, Inc. (a)		4,947		88,551
Weyco Group, Inc.		2,477		63,114
Wolverine World Wide, Inc.		13,787		506,810

				17,274,121

Consumer Services 3.8%
AFC Enterprises, Inc. *		7,551		111,679
Ambassadors Group, Inc.		5,755		61,291
American Public Education, Inc. *		5,198		220,499
Ameristar Casinos, Inc.		6,994		117,150
Bally Technologies, Inc. *		15,389		594,477
Biglari Holdings, Inc. *		340		145,438
BJ’s Restaurants, Inc. *		6,488		233,244
Bob Evans Farms, Inc.		8,223		257,709
Boyd Gaming Corp. *		16,419		175,519
Bravo Brio Restaurant Group, Inc. *		2,690		46,349
Bridgepoint Education, Inc. *(a)		5,477		102,529
Brinker International, Inc.		28,615		676,459
Buffalo Wild Wings, Inc. *		5,198		275,442
California Pizza Kitchen, Inc. *		7,076		119,160
Cambium Learning Group, Inc. *		1,420		5,084
Capella Education Co. *		4,035		232,698
Career Education Corp. *		18,613		448,759
CEC Entertainment, Inc. *		6,015		232,720
Choice Hotels International, Inc.		9,156		353,605
Churchill Downs, Inc.		3,511		146,619
Coinstar, Inc. *		8,608		367,389
Corinthian Colleges, Inc. *(a)		23,747		124,434
Cracker Barrel Old Country Store, Inc.		6,592		328,545
Denny’s Corp. *		29,092		113,168
DineEquity, Inc. *		4,573		261,621
Domino’s Pizza, Inc. *		12,674		213,810
Education Management Corp. *(a)		12,217		236,643
Gaylord Entertainment Co. *		10,232		368,659
Grand Canyon Education, Inc. *		8,892		142,983
Hillenbrand, Inc.		17,525		381,169
International Speedway Corp., Class A		8,192		227,082
Interval Leisure Group, Inc. *		11,634		196,731
Isle of Capri Casinos, Inc. *		5,197		48,072
ITT Educational Services, Inc. *		9,041		685,760
Jack in the Box, Inc. *		15,647		344,234
K12, Inc. *		8,741		294,047
Krispy Kreme Doughnuts, Inc. *		14,941		93,680
Life Time Fitness, Inc. *		11,968		458,973
Lincoln Educational Services Corp.		3,666		56,860
Matthews International Corp., Class A		8,399		312,023
Morgans Hotel Group Co. *		6,804		60,488
National American University Holdings, Inc.		2,690		20,148
Orient-Express Hotels Ltd., Class A *		25,853		326,265
P.F. Chang’s China Bistro, Inc.		6,456		299,817
Panera Bread Co., Class A *		9,156		1,068,963
Papa John’s International, Inc. *		5,947		173,534
Peet’s Coffee & Tea, Inc. *		3,831		163,814
Pinnacle Entertainment, Inc. *		17,564		230,615
Pre-Paid Legal Services, Inc. *		2,152		141,903
Red Robin Gourmet Burgers, Inc. *		4,108		98,017
Regis Corp.		16,173		283,513
Ruby Tuesday, Inc. *		18,304		244,541
Scientific Games Corp., Class A *		19,394		173,770
Service Corp. International		69,996		762,956
Shuffle Master, Inc. *		15,612		146,909
Six Flags Entertainment Corp.		7,590		473,312
Sonic Corp. *		16,445		146,032
Sotheby’s		19,019		936,115
Speedway Motorsports, Inc.		4,081		59,664
Steiner Leisure Ltd. *		3,872		182,604
Stewart Enterprises, Inc., Class A		22,398		170,673
Texas Roadhouse, Inc. *		16,523		280,561
The Cheesecake Factory, Inc. *		16,271		472,510
The Marcus Corp.		6,063		78,940
Universal Technical Institute, Inc.		6,869		126,390
Vail Resorts, Inc. *		10,225		498,980
Wendy’s/Arby’s Group, Inc., Class A		93,158		443,432
WMS Industries, Inc. *		16,321		649,413

				18,526,192

Diversified Financials 2.2%
Advance America Cash Advance Centers, Inc.		14,805		79,651
Artio Global Investors, Inc.		11,943		189,297
Asset Acceptance Capital Corp. *		11,234		66,056
BGC Partners, Inc., Class A		14,354		137,224
Calamos Asset Management, Inc., Class A		5,755		95,418
Cardtronics, Inc. *		9,483		179,703
Cash America International, Inc.		8,443		360,601
Cohen & Steers, Inc.		5,756		168,075
Compass Diversified Holdings		11,065		179,364
CompuCredit Holdings Corp. *(a)		5,204		34,659
Cowen Group, Inc., Class A *		10,638		45,531
Credit Acceptance Corp. *		1,404		99,122
Dollar Financial Corp. *		10,642		227,632
Duff & Phelps Corp., Class A		6,741		106,171
Encore Capital Group, Inc. *		4,081		111,126
Epoch Holding Corp.		4,170		65,594
Evercore Partners, Inc., Class A		5,529		190,640
EZCORP, Inc., Class A *		12,503		358,586
FBR Capital Markets Corp. *		15,443		57,448
Financial Engines, Inc. *		8,090		197,477
First Cash Financial Services, Inc. *		7,820		256,027
Gain Capital Holdings, Inc. *		7,672		59,381
GAMCO Investors, Inc., Class A		1,345		62,462
GFI Group, Inc.		19,511		97,555
Gleacher & Co., Inc. *		21,261		40,821
Green Dot Corp., Class A *(a)		2,352		122,798
Greenhill & Co., Inc.		8,494		610,124

See financial notes 81

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Interactive Brokers Group, Inc., Class A		10,519		162,519
International Assets Holding Corp. *		3,892		94,225
Investment Technology Group, Inc. *		12,210		233,822
Janus Capital Group, Inc.		52,029		698,749
KBW, Inc.		10,238		261,990
Knight Capital Group, Inc., Class A *		26,733		374,529
LaBranche & Co., Inc. *		9,557		40,139
Life Partners Holdings, Inc. (a)		2,486		20,534
MarketAxess Holdings, Inc.		8,162		174,585
MF Global Holdings Ltd. *		41,829		362,657
Nelnet, Inc., Class A		8,080		180,426
Netspend Holdings, Inc. *		5,111		67,005
NewStar Financial, Inc. *		9,172		97,131
Oppenheimer Holdings, Inc., Class A		3,228		105,943
optionsXpress Holdings, Inc.		12,643		204,943
Penson Worldwide, Inc. *		6,197		40,776
PHH Corp. *		15,939		393,375
PICO Holdings, Inc. *		5,667		168,367
Piper Jaffray Cos., Inc. *		5,512		226,819
Portfolio Recovery Associates, Inc. *		4,932		411,082
Pzena Investment Management, Inc., Class A		4,458		33,658
Stifel Financial Corp. *		10,064		721,991
SWS Group, Inc.		6,725		36,248
The First Marblehead Corp. *		19,378		45,151
TradeStation Group, Inc. *		11,581		77,940
Waddell & Reed Financial, Inc., Class A		24,324		982,203
Westwood Holdings Group, Inc.		2,152		80,765
World Acceptance Corp. *		4,380		261,968

				10,758,083

Energy 6.9%
Alon USA Energy, Inc. (a)		5,480		60,718
Amyris, Inc. *		1,477		47,988
Apco Oil & Gas International, Inc.		2,512		203,321
ATP Oil & Gas Corp. *(a)		12,645		256,820
Atwood Oceanics, Inc. *		15,706		714,937
Basic Energy Services, Inc. *		6,994		134,145
Berry Petroleum Co., Class A		13,527		703,269
Bill Barrett Corp. *		11,633		452,291
BPZ Resources, Inc. *(a)		28,079		182,514
Brigham Exploration Co. *		32,973		1,206,152
Bristow Group, Inc. *		9,534		456,869
Cal Dive International, Inc. *		25,650		176,472
CARBO Ceramics, Inc.		5,662		701,918
Carrizo Oil & Gas, Inc. *		8,953		333,231
Cheniere Energy, Inc. *(a)		16,243		168,602
Clayton Williams Energy, Inc. *		2,511		266,367
Clean Energy Fuels Corp. *		14,795		207,722
Cloud Peak Energy, Inc. *		16,822		344,851
Complete Production Services, Inc. *		20,726		597,116
Comstock Resources, Inc. *		13,450		357,098
Contango Oil & Gas Co. *		3,852		236,051
Crosstex Energy, Inc.		13,483		138,605
CVR Energy, Inc. *		20,175		381,308
Dawson Geophysical Co. *		2,232		111,421
Delek US Holdings, Inc.		4,084		45,945
Delta Petroleum Corp. *		53,810		62,958
DHT Holding, Inc.		16,947		78,804
Dresser-Rand Group, Inc. *		23,014		1,134,130
Dril-Quip, Inc. *		8,877		680,866
Energy Partners Ltd. *		8,125		133,006
Exterran Holdings, Inc. *		17,630		400,201
Frontier Oil Corp.		29,365		819,284
Gastar Exploration Ltd. *		13,197		65,325
General Maritime Corp. (a)		21,550		60,340
Gevo, Inc. *		1,096		21,602
Global Geophysical Services, Inc. *		5,832		82,056
Global Industries Ltd. *		30,488		273,782
GMX Resources, Inc. *(a)		13,181		68,409
Goodrich Petroleum Corp. *		7,831		159,283
Green Plains Renewable Energy, Inc. *(a)		4,901		59,939
Gulf Island Fabrication, Inc.		3,349		103,719
Gulfmark Offshore, Inc., Class A *		7,552		335,158
Gulfport Energy Corp. *		7,831		231,719
Hallador Energy Co. (a)		3,562		35,905
Harvest Natural Resources, Inc. *		9,959		148,389
Helix Energy Solutions Group, Inc. *		29,635		456,379
Hercules Offshore, Inc. *		29,366		145,068
Holly Corp.		12,498		714,136
Hornbeck Offshore Services, Inc. *		6,994		198,700
Houston American Energy Corp. (a)		5,179		82,916
International Coal Group, Inc. *		50,034		493,836
ION Geophysical Corp. *		31,939		409,458
Isramco, Inc. *		538		35,142
James River Coal Co. *		7,576		159,096
Key Energy Services, Inc. *		39,912		618,636
Kodiak Oil & Gas Corp. *		51,455		389,514
Lufkin Industries, Inc.		8,449		660,289
Matrix Service Co. *		8,161		113,928
McMoRan Exploration Co. *		24,754		433,195
Newpark Resources, Inc. *		24,831		173,320
Northern Oil and Gas, Inc. *		15,602		495,676
Oasis Petroleum, Inc. *		12,247		422,766
Oil States International, Inc. *		14,317		1,042,134
Overseas Shipholding Group, Inc. (a)		7,823		264,104
OYO Geospace Corp. *		1,285		130,659
Parker Drilling Co. *		31,479		165,580
Patriot Coal Corp. *		22,170		523,212
Penn Virginia Corp.		12,997		211,461
Petroleum Development Corp. *		6,456		302,980
PetroQuest Energy, Inc. *		14,529		125,240
PHI, Inc. *		4,081		87,742
Pioneer Drilling Co. *		14,279		161,638
Rentech, Inc. *		64,335		82,349
Resolute Energy Corp. *(a)		13,203		239,370
Rex Energy Corp. *		9,802		123,505
Rosetta Resources, Inc. *		14,829		672,643
RPC, Inc.		14,375		281,463
SandRidge Energy, Inc. *		107,879		1,166,172
SEACOR Holdings, Inc.		5,933		562,270
SemGroup Corp., Class A *		10,222		328,228
Ship Finance International Ltd.		12,244		254,553
SM Energy Co.		17,808		1,290,546
Stone Energy Corp. *		11,866		359,302
Superior Energy Services, Inc. *		22,189		850,061
Swift Energy Co. *		11,734		503,975
Targa Resources Corp.		4,304		141,042
Teekay Corp.		11,893		409,238
Tesco Corp. *		9,279		170,641

82 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Tesoro Corp. *		39,675		943,471
TETRA Technologies, Inc. *		21,261		293,614
Unit Corp. *		13,290		790,755
USEC, Inc. *		30,937		164,585
VAALCO Energy, Inc. *		16,451		131,937
Venoco, Inc. *		5,755		106,180
W&T Offshore, Inc.		10,562		269,648
Warren Resources, Inc. *		18,035		88,732
Western Refining, Inc. *		15,612		254,007
Willbros Group, Inc. *		11,592		131,685
World Fuel Services Corp.		19,368		802,610

				33,869,993

Food & Staples Retailing 0.8%
Arden Group, Inc., Class A		538		41,856
BJ’s Wholesale Club, Inc. *		15,155		733,805
Casey’s General Stores, Inc.		10,564		433,863
Fresh Market, Inc. *		3,625		147,900
Ingles Markets, Inc., Class A		3,552		68,305
Nash Finch Co.		3,372		136,128
PriceSmart, Inc.		4,657		165,743
Rite Aid Corp. *		168,484		220,714
Ruddick Corp.		11,903		436,840
Spartan Stores, Inc.		6,739		101,557
Susser Holdings Corp. *		2,160		29,916
The Andersons, Inc.		5,217		250,625
The Pantry, Inc. *		6,592		103,890
United Natural Foods, Inc. *		12,291		521,753
Village Super Market, Inc., Class A		1,395		41,906
Weis Markets, Inc.		3,497		138,726
Winn-Dixie Stores, Inc. *		14,795		103,269

				3,676,796

Food, Beverage & Tobacco 1.7%
Alico, Inc.		636		16,860
Alliance One International, Inc. *		28,246		102,533
B&G Foods, Inc.		13,027		195,405
Cal-Maine Foods, Inc.		3,829		110,543
Calavo Growers, Inc.		3,835		89,049
Central European Distribution Corp. *		17,891		408,809
Chiquita Brands International, Inc. *		12,954		222,679
Coca-Cola Bottling Co. Consolidated		1,345		77,606
Corn Products International, Inc.		21,193		1,034,642
Darling International, Inc. *		30,128		418,478
Dean Foods Co. *		51,155		540,197
Del Monte Foods Co.		54,991		1,040,980
Diamond Foods, Inc.		6,456		328,933
Dole Food Co., Inc. *(a)		9,259		136,570
Farmer Brothers Co.		1,675		21,993
Fresh Del Monte Produce, Inc.		11,601		331,557
J&J Snack Foods Corp.		3,874		170,340
Lancaster Colony Corp.		5,739		331,255
Limoneira Co.		2,486		57,203
National Beverage Corp.		2,791		35,418
Pilgrim’s Pride Corp. *		12,967		99,976
Primo Water Corp. *		2,152		27,502
Sanderson Farms, Inc. (a)		5,918		244,709
Seneca Foods Corp., Class A *		2,784		78,314
Smart Balance, Inc. *		20,468		88,831
Snyders-Lance, Inc.		11,746		214,012
The Boston Beer Co., Inc., Class A *		2,690		249,686
The Hain Celestial Group, Inc. *		12,124		361,538
Tootsie Roll Industries, Inc.		6,823		195,138
TreeHouse Foods, Inc. *		9,786		510,536
Universal Corp.		6,794		284,125
Vector Group Ltd. (a)		12,382		209,132

				8,234,549

Health Care Equipment & Services 6.6%
Abaxis, Inc. *		6,314		167,447
ABIOMED, Inc. *		9,559		119,201
Accretive Health, Inc. *(a)		9,060		184,190
Accuray, Inc. *		13,306		131,729
Air Methods Corp. *		3,273		189,965
Align Technology, Inc. *		16,718		348,570
Alimera Sciences, Inc. *(a)		3,831		30,571
Alliance HealthCare Services, Inc. *		8,945		37,032
Allscripts Healthcare Solutions, Inc. *		52,455		1,119,914
Almost Family, Inc. *		2,690		104,910
Alphatec Holdings, Inc. *		18,571		49,399
Amedisys, Inc. *		8,191		294,221
American Medical Systems Holdings, Inc. *		21,796		477,550
AMERIGROUP Corp. *		14,605		837,597
AMN Healthcare Services, Inc. *		12,643		94,443
AmSurg Corp. *		8,484		200,477
Analogic Corp.		3,580		194,036
AngioDynamics, Inc. *		7,273		122,332
ArthroCare Corp. *		7,572		261,158
Assisted Living Concepts, Inc., Class A *		2,994		107,634
athenahealth, Inc. *		9,684		439,073
Atrion Corp.		538		94,871
Bio-Reference Labs, Inc. *		7,037		147,214
BioScrip, Inc. *		15,169		64,013
Brookdale Senior Living, Inc. *		28,041		754,022
Cantel Medical Corp.		3,831		83,707
Catalyst Health Solutions, Inc. *		11,298		510,783
Centene Corp. *		14,403		438,859
Chemed Corp.		6,456		422,481
Computer Programs & Systems, Inc.		3,000		162,030
Conceptus, Inc. *		7,273		102,258
CONMED Corp. *		8,443		223,571
Continucare Corp. *		9,276		52,502
CorVel Corp. *		1,982		98,109
Cross Country Healthcare, Inc. *		8,470		70,470
CryoLife, Inc. *		6,542		35,327
Cyberonics, Inc. *		7,827		258,526
Dexcom, Inc. *		17,369		254,108
Emdeon, Inc., Class A *		12,696		199,327
Emergency Medical Services Corp., Class A *		8,768		553,699
Emeritus Corp. *		8,201		192,970
ePocrates, Inc. *		1,644		35,675
ExamWorks Group, Inc. *		2,690		56,678
Genoptix, Inc. *		4,919		122,926
Gentiva Health Services, Inc. *		8,442		238,318
Greatbatch, Inc. *		6,743		167,766
Haemonetics Corp. *		7,263		447,764
Hanger Orthopedic Group, Inc. *		9,001		242,127

See financial notes 83

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Health Management Associates, Inc., Class A *		71,373		713,730
Health Net, Inc. *		27,551		810,550
HEALTHSOUTH Corp. *		26,425		639,749
Healthspring, Inc. *		14,646		551,275
Healthways, Inc. *		9,985		139,490
Hill-Rom Holdings, Inc.		17,755		675,933
HMS Holdings Corp. *		7,801		589,444
ICU Medical, Inc. *		3,309		138,945
Immucor, Inc. *		17,320		337,220
Insulet Corp. *		9,810		173,637
Integra LifeSciences Holdings Corp. *		5,649		283,297
Invacare Corp.		9,279		274,380
IPC The Hospitalist Co. *		4,842		197,554
IRIS International, Inc. *		5,198		52,760
Kensey Nash Corp. *		2,762		72,530
Kindred Healthcare, Inc. *		11,436		284,985
Landauer, Inc.		2,517		158,319
LHC Group, Inc. *		4,308		128,637
LifePoint Hospitals, Inc. *		15,449		602,202
Magellan Health Services, Inc. *		9,684		464,638
MAKO Surgical Corp. *(a)		10,136		208,802
Masimo Corp.		15,139		456,289
MedAssets, Inc. *		12,721		180,257
MedCath Corp. *		4,917		69,920
Medidata Solutions, Inc. *		6,272		162,508
MEDNAX, Inc. *		13,450		873,309
MedQuist Holdings, Inc. *		1,096		9,952
MedQuist, Inc.		3,345		29,938
MELA Sciences, Inc. *(a)		3,805		10,007
Meridian Bioscience, Inc.		11,713		252,649
Merit Medical Systems, Inc. *		8,189		139,868
Molina Healthcare, Inc. *		4,698		164,571
MWI Veterinary Supply, Inc. *		3,497		242,062
National Healthcare Corp.		3,014		143,466
Natus Medical, Inc. *		8,192		129,925
Neogen Corp. *		6,314		236,080
Neoprobe Corp. *(a)		20,555		87,359
NuVasive, Inc. *		11,049		295,340
NxStage Medical, Inc. *		8,783		181,193
Omnicell, Inc. *		9,429		126,726
OraSure Technologies, Inc. *		13,460		93,278
Orthofix International N.V. *		4,918		155,409
Orthovita, Inc. *		22,337		53,162
Owens & Minor, Inc.		17,618		549,682
Palomar Medical Technologies, Inc. *		5,476		87,506
PharMerica Corp. *		8,750		102,813
PSS World Medical, Inc. *		15,990		416,060
Quality Systems, Inc.		5,198		415,320
Quidel Corp. *		7,831		103,056
RehabCare Group, Inc. *		6,901		256,372
RTI Biologics, Inc. *		11,626		31,274
Select Medical Holdings Corp. *		16,789		130,954
Sirona Dental Systems, Inc. *		11,398		575,143
Skilled Healthcare Group, Inc., Class A *		6,468		88,676
SonoSite, Inc. *		3,845		138,228
Stereotaxis, Inc. *		12,235		48,328
STERIS Corp.		15,203		514,622
Sun Healthcare Group, Inc. *		6,575		96,653
SurModics, Inc. *		4,668		60,871
Symmetry Medical, Inc. *		10,621		96,014
Synovis Life Technologies, Inc. *		3,271		64,570
Team Health Holdings, Inc. *		5,657		104,598
Tenet Healthcare Corp. *		136,161		977,636
The Cooper Cos., Inc.		12,955		800,878
The Ensign Group, Inc.		3,627		110,297
Thoratec Corp. *		16,210		451,935
TomoTherapy, Inc. *		12,731		45,322
Triple-S Management Corp., Class B *		6,034		119,232
Unilife Corp. *		14,825		69,974
Universal American Financial Corp.		11,839		243,647
VCA Antech, Inc. *		24,569		615,208
Volcano Corp. *		14,299		375,206
WellCare Health Plans, Inc. *		11,913		447,333
West Pharmaceutical Services, Inc.		9,694		398,520
Wright Medical Group, Inc. *		11,075		175,317
Zoll Medical Corp. *		6,027		278,930

				32,123,070

Household & Personal Products 0.3%
Central Garden & Pet Co., Class A *		16,733		154,111
Elizabeth Arden, Inc. *		7,324		213,055
Inter Parfums, Inc.		4,110		74,268
Medifast, Inc. *		4,035		93,370
Nu Skin Enterprises, Inc., Class A		16,140		515,189
Prestige Brands Holdings, Inc., Class A *		14,064		154,985
Revlon, Inc., Class A *		3,273		48,899
Spectrum Brands Holdings, Inc. *		5,440		156,128
USANA Health Sciences, Inc. *		2,194		76,395
WD-40 Co.		4,390		178,497

				1,664,897

Insurance 2.9%
American Equity Investment Life Holding Co.		15,811		208,705
AMERISAFE, Inc. *		5,505		109,880
AmTrust Financial Services, Inc.		6,994		134,495
Argo Group International Holdings Ltd.		8,686		330,850
Arthur J. Gallagher & Co.		30,128		946,019
Aspen Insurance Holdings Ltd.		19,906		588,222
Baldwin & Lyons, Inc., Class B		2,735		66,707
Citizens, Inc. *		10,518		78,464
CNA Surety Corp. *		4,640		117,299
CNO Financial Group, Inc. *		64,058		463,780
Crawford & Co., Class B *		7,126		31,354
Delphi Financial Group, Inc., Class A		13,018		403,037
Donegal Group, Inc., Class A		3,831		48,884
eHealth, Inc. *		6,994		87,705
EMC Insurance Group, Inc.		1,444		35,248
Employers Holdings, Inc.		11,394		229,247
Endurance Specialty Holdings Ltd.		13,450		666,985
Enstar Group Ltd. *		2,959		248,142
Erie Indemnity Co., Class A		7,903		551,946
FBL Financial Group, Inc., Class A		3,831		119,680
First American Financial Corp.		28,261		445,393
Flagstone Reinsurance Holdings S.A.		8,477		96,638
FPIC Insurance Group, Inc. *		2,798		105,373
Global Indemnity plc *		4,165		92,879
Greenlight Capital Re Ltd., Class A *		8,339		241,331

84 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Harleysville Group, Inc.		3,627		132,567
Hilltop Holdings, Inc. *		11,096		107,409
Horace Mann Educators Corp.		11,578		196,247
Infinity Property & Casualty Corp.		3,548		215,399
Kansas City Life Insurance Co.		1,116		38,100
Maiden Holdings Ltd.		16,415		131,156
MBIA, Inc. *		44,185		495,314
Meadowbrook Insurance Group, Inc.		15,476		157,236
Mercury General Corp.		7,353		302,502
Montpelier Re Holdings Ltd.		19,765		398,660
National Financial Partners Corp. *		12,244		173,130
National Interstate Corp.		1,953		40,701
National Western Life Insurance Co., Class A		587		102,655
OneBeacon Insurance Group Ltd., Class A		6,593		90,324
Platinum Underwriters Holdings Ltd.		11,125		463,912
Presidential Life Corp.		6,314		63,266
Primerica, Inc.		4,903		126,301
ProAssurance Corp. *		9,146		579,216
Protective Life Corp.		24,254		689,541
RLI Corp.		5,111		293,423
Safety Insurance Group, Inc.		4,380		210,766
Seabright Holdings, Inc.		6,464		68,066
Selective Insurance Group, Inc.		14,876		270,446
StanCorp Financial Group, Inc.		13,104		602,784
State Auto Financial Corp.		4,110		71,021
Stewart Information Services Corp.		4,947		55,159
Symetra Financial Corp.		26,376		377,177
The Navigators Group, Inc. *		3,280		172,069
The Phoenix Cos., Inc. *		27,993		74,461
Tower Group, Inc.		11,040		300,067
United Fire & Casualty Co.		6,743		139,513
Unitrin, Inc.		13,188		386,277
Universal Insurance Holdings, Inc.		6,525		37,649

				14,010,777

Materials 6.1%
A. Schulman, Inc.		8,717		194,040
A.M. Castle & Co. *		4,637		79,942
AbitibiBowater, Inc. *		20,848		583,536
AK Steel Holding Corp.		30,975		494,981
Allied Nevada Gold Corp. *		22,902		694,847
AMCOL International Corp.		7,631		238,164
American Vanguard Corp.		8,453		69,568
Arch Chemicals, Inc.		7,273		261,464
Balchem Corp.		8,180		294,480
Boise, Inc.		24,025		215,745
Brush Engineered Materials, Inc. *		5,756		251,940
Buckeye Technologies, Inc.		11,354		297,475
Cabot Corp.		17,337		749,999
Calgon Carbon Corp. *		15,623		219,347
Carpenter Technology Corp.		12,448		517,588
Century Aluminum Co. *		15,442		261,742
Chemtura Corp. *		28,304		460,506
Clearwater Paper Corp. *		3,288		260,738
Coeur d’Alene Mines Corp. *		24,878		783,906
Commercial Metals Co.		31,815		530,356
Compass Minerals International, Inc.		9,415		880,020
Cytec Industries, Inc.		13,988		794,938
Deltic Timber Corp.		3,318		201,635
Domtar Corp.		12,056		1,053,694
Eagle Materials, Inc.		12,462		402,772
Ferro Corp. *		24,221		385,598
Georgia Gulf Corp. *		9,537		304,421
Glatfelter		12,466		153,456
Globe Specialty Metals, Inc.		14,655		341,315
Graham Packaging Co., Inc. *		4,918		83,557
Graphic Packaging Holding Co. *		20,745		107,874
Greif, Inc., Class A		9,685		626,232
H.B. Fuller Co.		13,834		298,123
Haynes International, Inc.		3,348		173,560
Headwaters, Inc. *		16,501		83,660
Hecla Mining Co. *		72,653		737,428
Horsehead Holding Corp. *		12,482		206,452
Innophos Holdings, Inc.		5,976		255,952
Intrepid Potash, Inc. *		11,975		462,235
Kaiser Aluminum Corp.		4,090		206,668
KapStone Paper and Packaging Corp. *		12,148		208,338
Koppers Holdings, Inc.		6,034		243,834
Kraton Performance Polymers, Inc. *		8,648		296,626
Kronos Worldwide, Inc.		2,690		133,155
Louisiana-Pacific Corp. *		35,872		370,199
LSB Industries, Inc. *		5,390		163,209
Metals USA Holdings Corp. *		2,795		41,785
Minerals Technologies, Inc.		5,218		338,544
Molycorp, Inc. *(a)		15,623		749,748
Myers Industries, Inc.		8,162		82,599
Neenah Paper, Inc.		4,361		84,909
NewMarket Corp.		2,959		379,078
NL Industries, Inc.		4,110		56,184
Noranda Aluminium Holding Corp. *		6,112		96,386
Olin Corp.		19,753		367,603
Olympic Steel, Inc.		2,735		73,544
OM Group, Inc. *		8,659		304,710
Omnova Solutions, Inc. *		12,704		89,436
Packaging Corp. of America		29,054		836,465
PolyOne Corp. *		24,271		336,882
Rock-Tenn Co., Class A (a)		10,812		742,244
Rockwood Holdings, Inc. *		14,698		684,192
Royal Gold, Inc.		14,895		739,090
RPM International, Inc.		36,432		836,843
RTI International Metals, Inc. *		8,415		239,828
Schnitzer Steel Industries, Inc., Class A		6,247		401,057
Schweitzer-Mauduit International, Inc.		5,380		294,985
Sensient Technologies Corp.		13,863		462,747
Silgan Holdings, Inc.		14,350		523,488
Solutia, Inc. *		34,449		799,561
Spartech Corp. *		10,028		85,037
Stepan Co.		2,031		142,556
Stillwater Mining Co. *		13,760		328,451
STR Holdings, Inc. *(a)		11,657		211,108
Temple-Inland, Inc.		30,462		712,506
Texas Industries, Inc.		6,557		267,394
TPC Group, Inc. *		4,913		142,723
United States Lime & Minerals, Inc. *		302		12,183
US Gold Corp. *		24,768		179,816
Valhi, Inc.		1,488		35,548
W.R. Grace & Co. *		16,996		646,528
Wausau Paper Corp.		13,478		108,228
Westlake Chemical Corp.		5,649		270,079

See financial notes 85

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Worthington Industries, Inc.		16,700		323,312
Zep, Inc.		6,464		101,420
Zoltek Cos., Inc. *		8,164		119,358

				29,883,470

Media 1.3%
Arbitron, Inc.		7,634		303,910
Ascent Media Corp., Class A *		4,107		171,344
Belo Corp., Class A *		25,134		200,318
Cinemark Holdings, Inc.		17,029		341,942
CKX, Inc. *		16,547		58,411
Crown Media Holdings, Inc., Class A *(a)		25,487		61,934
Dex One Corp. *		8,070		42,529
Entercom Communications Corp., Class A *		7,125		93,195
Entravision Communications Corp., Class A *		26,857		63,114
Fisher Communications, Inc. *		1,674		44,796
Harte-Hanks, Inc.		11,354		144,082
Journal Communications, Inc., Class A *		9,988		61,326
Knology, Inc. *		9,151		127,382
Lamar Advertising Co., Class A *		16,261		630,439
LIN TV Corp., Class A *		8,081		49,375
Live Nation Entertainment, Inc. *		41,480		440,932
Madison Square Garden, Inc., Class A *		17,045		486,805
Martha Stewart Living Omnimedia, Class A *(a)		8,166		33,481
Mediacom Communications Corp., Class A *		11,632		102,594
Meredith Corp. (a)		10,511		370,618
Morningstar, Inc.		6,456		378,838
National CineMedia, Inc.		15,343		289,829
PRIMEDIA, Inc.		8,195		38,189
ReachLocal, Inc. *		2,527		48,114
Regal Entertainment Group, Class A		21,992		328,561
Scholastic Corp.		6,456		202,718
Sinclair Broadcast Group, Inc.		13,011		168,362
SuperMedia, Inc., Class A *(a)		1,614		13,590
The Dolan Media Co. *		8,089		101,113
The E.W. Scripps Co., Class A *		8,182		78,302
The McClatchy Co., Class A *(a)		17,046		68,355
The New York Times Co., Class A *		27,036		281,174
Valassis Communications, Inc. *		14,070		397,055
Value Line, Inc.		538		7,758
Warner Music Group Corp. *		13,506		81,171
World Wrestling Entertainment, Inc., Class A		7,831		101,098

				6,412,754

Pharmaceuticals, Biotechnology & Life Sciences 3.9%
Acorda Therapeutics, Inc. *		10,921		229,013
Aedea Biosciences, Inc. *		3,813		101,083
Affymax, Inc. *		5,686		36,277
Affymetrix, Inc. *		18,416		90,423
Akorn, Inc. *		18,048		100,888
Albany Molecular Research, Inc. *		4,972		22,473
Alkermes, Inc. *		27,279		390,908
Allos Therapeutics, Inc. *		23,682		79,098
Alnylam Pharmaceuticals, Inc. *		10,518		115,488
AMAG Pharmaceuticals, Inc. *		6,058		111,528
Arena Pharmaceuticals, Inc. *(a)		30,515		49,434
ARIAD Pharmaceuticals, Inc. *		33,689		202,471
ArQule, Inc. *		8,441		53,769
Array BioPharma, Inc. *		13,253		37,108
Auxilium Pharmaceuticals, Inc. *		13,289		298,604
AVEO Pharmaceuticals, Inc. *		10,001		137,814
Bio-Rad Laboratories, Inc., Class A *		5,394		615,779
BioCryst Pharmaceuticals, Inc. *		6,538		28,375
BioMarin Pharmaceutical, Inc. *		28,814		704,790
BioMimetic Therapeutics, Inc. *		6,049		81,541
Bruker Corp. *		21,273		408,229
Cadence Pharmaceuticals, Inc. *(a)		10,704		80,387
Caraco Pharmaceutical Laboratories Ltd. *		10,960		57,102
Celera Corp. *		23,802		151,381
Cell Therapeutics, Inc. *(a)		215,226		60,263
Cepheid, Inc. *		16,777		444,758
Clinical Data, Inc. *		4,988		151,486
Codexis, Inc. *		6,725		71,689
Cubist Pharmaceuticals, Inc. *		16,480		361,406
Cumberland Pharmaceuticals, Inc. *(a)		4,370		26,744
Cytori Therapeutics, Inc. *(a)		9,267		53,934
Dionex Corp. *		4,880		574,962
Durect Corp. *		23,728		76,879
Dyax Corp. *		29,457		50,666
Emergent Biosolutions, Inc. *		6,265		131,816
Enzo Biochem, Inc. *		11,156		48,082
Enzon Pharmaceuticals, Inc. *		15,438		164,878
eResearchTechnology, Inc. *		14,320		90,932
Exelixis, Inc. *		31,483		391,963
Fluidigm Corp. *		2,192		30,973
Genomic Health, Inc. *		4,688		118,325
Geron Corp. *		33,796		167,290
Halozyme Therapeutics, Inc. *		22,883		158,122
Hi-Tech Pharmacal Co., Inc. *		2,780		64,190
Idenix Pharmaceuticals, Inc. *		12,643		42,733
ImmunoGen, Inc. *(a)		19,109		172,172
Immunomedics, Inc. *		20,237		74,067
Impax Laboratories, Inc. *		17,619		362,775
Incyte Corp. *		32,033		438,211
Inspire Pharmaceuticals, Inc. *		16,753		67,347
InterMune, Inc. *		12,934		473,514
Ironwood Pharmaceuticals, Inc. *		13,450		164,494
Isis Pharmaceuticals, Inc. *		27,536		251,128
Jazz Pharmaceuticals, Inc. *		7,029		173,124
Kendle International, Inc. *		4,389		52,229
Lexicon Pharmaceuticals, Inc. *		60,846		118,041
Ligand Pharmaceuticals, Inc., Class B *		402		4,358
Luminex Corp. *		12,249		230,526
MannKind Corp. *(a)		23,449		87,699
MAP Pharmaceuticals, Inc. *		4,640		74,843
Maxygen, Inc.		8,728		36,396
Medicis Pharmaceutical Corp., Class A		16,492		529,228
Medivation, Inc. *		9,987		172,575
Metabolix, Inc. *(a)		7,076		64,250
Micromet, Inc. *		25,613		159,569
Momenta Pharmaceuticals, Inc. *(a)		11,354		157,594

86 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Myriad Genetics, Inc. *		26,667		493,873
Nabi Biopharmaceuticals *		13,455		76,155
Nektar Therapeutics *		31,784		304,809
Neurocrine Biosciences, Inc. *		15,450		104,288
Novavax, Inc. *(a)		26,143		67,972
NPS Pharmaceuticals, Inc. *		18,915		146,213
Obagi Medical Products, Inc. *		4,448		50,974
Onyx Pharmaceuticals, Inc. *		17,566		619,026
Opko Health, Inc. *		35,377		170,871
Optimer Pharmaceuticals, Inc. *		9,999		119,388
Orexigen Therapeutics, Inc. *(a)		10,348		33,735
Osiris Therapeutics, Inc. *(a)		5,478		36,319
Pacific Biosciences of California, Inc. *(a)		2,690		42,341
Pain Therapeutics, Inc. *		10,266		70,219
Par Pharmaceutical Cos., Inc. *		9,746		300,957
PAREXEL International Corp. *		16,421		385,401
PDL BioPharma, Inc.		39,335		218,309
Pharmacyclics, Inc. *		12,749		65,785
Pharmasset, Inc. *		7,846		392,300
POZEN, Inc. *		7,272		37,378
Progenics Pharmaceuticals, Inc. *		7,912		44,703
Questcor Pharmaceuticals, Inc. *		15,639		202,681
Regeneron Pharmaceuticals, Inc. *		19,416		704,218
Rigel Pharmaceuticals, Inc. *		15,358		107,352
Salix Pharmaceuticals Ltd. *		14,529		484,397
Sangamo BioSciences, Inc. *(a)		13,041		107,849
Santarus, Inc. *		15,064		48,054
Savient Pharmaceuticals, Inc. *		19,512		188,096
Seattle Genetics, Inc. *		25,824		383,486
Sequenom, Inc. *		25,137		154,341
SIGA Technologies, Inc. *		9,987		133,826
Sucampo Pharmaceuticals, Inc., Class A *		2,690		11,540
Targacept, Inc. *		6,741		193,265
The Medicines Co. *		15,436		268,432
Theravance, Inc. *		17,130		390,221
Vanda Pharmaceuticals, Inc. *		7,860		57,850
ViroPharma, Inc. *		21,886		392,416
VIVUS, Inc. *		21,876		166,476
XenoPort, Inc. *		8,614		62,624

				19,168,334

Real Estate 9.0%
Acadia Realty Trust		11,837		234,373
Alexander’s, Inc.		1,081		427,784
Alexandria Real Estate Equities, Inc.		15,602		1,251,280
American Assets Trust, Inc. *		6,850		147,686
American Campus Communities, Inc.		18,890		631,304
American Capital Agency Corp.		16,140		475,323
Anworth Mortgage Asset Corp.		33,756		241,018
Apartment Investment & Management Co., Class A		33,635		862,738
Ashford Hospitality Trust *		16,559		170,723
Associated Estates Realty Corp.		11,366		184,697
Avatar Holdings, Inc. *		2,233		47,563
BioMed Realty Trust, Inc.		36,853		668,882
Brandywine Realty Trust		37,210		457,683
BRE Properties, Inc.		17,914		851,094
Camden Property Trust		19,378		1,146,596
Campus Crest Communities, Inc.		7,968		114,102
CapLease, Inc.		15,638		83,976
Capstead Mortgage Corp.		19,468		255,810
CBL & Associates Properties, Inc.		39,069		697,382
Cedar Shopping Centers, Inc.		16,230		98,354
Chimera Investment Corp.		283,261		1,220,855
Cogdell Spencer, Inc.		12,775		81,888
Colonial Properties Trust		21,923		432,102
Colony Financial, Inc.		4,376		92,990
CommonWealth REIT		20,713		594,670
Coresite Realty Corp.		4,922		76,488
Corporate Office Properties Trust		18,561		665,783
Cousins Properties, Inc.		25,162		213,374
CreXus Investment Corp.		4,850		64,020
Cypress Sharpridge Investments, Inc.		21,651		269,771
DCT Industrial Trust, Inc.		59,041		331,810
Developers Diversified Realty Corp.		54,910		785,213
DiamondRock Hospitality Co. *		44,214		519,957
Douglas Emmett, Inc.		34,451		645,956
Duke Realty Corp.		71,381		1,004,331
DuPont Fabros Technology, Inc.		16,800		410,256
EastGroup Properties, Inc.		7,592		345,664
Education Realty Trust, Inc.		20,330		167,722
Entertainment Properties Trust		13,450		641,161
Equity Lifestyle Properties, Inc.		8,877		515,221
Equity One, Inc.		15,452		295,751
Essex Property Trust, Inc.		8,877		1,098,795
Extra Space Storage, Inc.		24,806		489,918
FelCor Lodging Trust, Inc. *		28,893		218,720
First Industrial Realty Trust, Inc. *		17,325		194,213
First Potomac Realty Trust		13,450		216,948
Forest City Enterprises, Inc., Class A *		35,016		661,802
Forestar Group, Inc. *		10,517		202,557
Franklin Street Properties Corp.		20,317		305,365
Getty Realty Corp.		6,482		190,700
Glimcher Realty Trust		28,181		259,265
Government Properties Income Trust		7,910		214,915
Hatteras Financial Corp.		15,901		470,352
Healthcare Realty Trust, Inc.		18,134		422,522
Hersha Hospitality Trust		41,695		273,936
Highwoods Properties, Inc.		20,253		687,184
Home Properties, Inc.		10,538		620,899
Hospitality Properties Trust		34,993		804,839
Hudson Pacific Properties, Inc.		3,777		56,844
Inland Real Estate Corp.		20,298		191,207
Invesco Mortgage Capital		13,802		322,139
Investors Real Estate Trust		21,794		203,120
iStar Financial, Inc. *		25,858		258,321
Jones Lang LaSalle, Inc.		12,056		1,186,552
Kennedy-Wilson Holdings, Inc. *		8,186		90,046
Kilroy Realty Corp.		14,820		574,275
Kite Realty Group Trust		15,677		88,418
LaSalle Hotel Properties		19,731		556,612
Lexington Realty Trust		30,198		285,975
LTC Properties, Inc.		6,744		197,060
Mack-Cali Realty Corp.		22,388		759,849
Medical Properties Trust, Inc.		31,290		367,032
MFA Financial, Inc.		79,469		673,102
Mid-America Apartment Communities, Inc.		9,615		624,687
National Health Investors, Inc.		6,601		313,680
National Retail Properties, Inc.		23,534		604,588
NorthStar Realty Finance Corp.		21,898		131,169

See financial notes 87

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
OMEGA Healthcare Investors, Inc.		27,834		667,181
Parkway Properties, Inc.		6,314		102,350
Pebblebrook Hotel Trust		11,310		248,141
Pennsylvania Real Estate Investment Trust		15,140		218,622
Pennymac Mortgage Investment Trust		7,398		139,452
Post Properties, Inc.		13,544		528,216
Potlatch Corp.		11,319		434,650
PS Business Parks, Inc.		5,141		324,089
Ramco-Gershenson Properties Trust		10,854		146,638
Redwood Trust, Inc.		19,718		322,981
Retail Opportunity Investments Corp.		11,851		130,361
Sabra Healthcare REIT, Inc.		20,444		376,578
Saul Centers, Inc.		1,979		91,034
Senior Housing Properties Trust		35,422		869,256
Sovran Self Storage, Inc.		7,659		297,169
Starwood Property Trust, Inc.		19,182		448,667
Strategic Hotels & Resorts, Inc. *		42,776		278,044
Summit Hotel Properties, Inc. *		7,672		74,802
Sun Communities, Inc.		5,173		178,882
Sunstone Hotel Investors, Inc. *		33,625		361,132
Tanger Factory Outlet Centers, Inc.		22,738		605,968
Taubman Centers, Inc.		15,418		855,391
Tejon Ranch Co. *		4,118		108,345
The Howard Hughes Corp. *		10,760		621,605
Two Harbors Investment Corp.		10,960		121,108
U-Store-It Trust		22,946		235,196
Universal Health Realty Income Trust		3,273		130,167
Urstadt Biddle Properties		2,637		42,825
Urstadt Biddle Properties, Class A		6,022		116,767
Walter Investment Management Corp.		7,632		149,511
Washington Real Estate Investment Trust		18,023		563,039
Weingarten Realty Investors		34,442		891,015
Winthrop Realty Trust		5,408		65,978

				43,986,117

Retailing 5.0%
1-800-FLOWERS.COM, Inc., Class A *		200		548
99 Cents Only Stores *		15,122		251,630
Aaron’s, Inc.		20,743		488,290
Aeropostale, Inc. *		26,687		692,261
America’s Car-Mart, Inc. *		3,058		75,777
AnnTaylor Stores Corp. *		16,502		383,011
Asbury Automotive Group, Inc. *		9,450		174,352
Ascena Retail Group, Inc. *		19,650		613,866
Audiovox Corp., Class A *		5,199		43,048
Barnes & Noble, Inc. (a)		11,355		152,043
bebe stores, Inc.		11,143		65,744
Big 5 Sporting Goods Corp.		5,505		76,740
Big Lots, Inc. *		21,430		879,273
Blue Nile, Inc. *(a)		4,117		235,410
Brown Shoe Co., Inc.		12,674		196,447
Cabela’s, Inc. *		12,244		332,180
Charming Shoppes, Inc. *		30,676		100,311
Chico’s FAS, Inc.		51,112		702,279
Christopher & Banks Corp.		9,260		56,579
Citi Trends, Inc. *		4,399		96,734
Coldwater Creek, Inc. *		17,624		52,167
Collective Brands, Inc. *		18,416		419,885
Conn’s, Inc. *(a)		3,588		15,967
Core-Mark Holding Co., Inc. *		3,228		109,591
Dick’s Sporting Goods, Inc. *		24,755		919,401
Dillard’s, Inc., Class A		12,797		541,825
Drugstore.Com, Inc. *		20,992		41,774
DSW, Inc., Class A *		4,140		168,125
Express, Inc.		10,843		194,957
Foot Locker, Inc.		43,911		872,512
Fred’s, Inc., Class A		10,299		141,920
Gaiam, Inc., Class A		4,918		37,623
Genesco, Inc. *		6,870		271,502
Gordmans Stores, Inc. *		1,440		21,571
Group 1 Automotive, Inc.		6,994		295,496
Haverty Furniture Cos., Inc.		5,457		72,578
hhgregg, Inc. *(a)		6,315		93,715
Hibbett Sports, Inc. *		8,212		257,939
Hot Topic, Inc.		11,092		59,342
HSN, Inc. *		11,633		377,840
J. Crew Group, Inc. *		16,846		726,399
Jo-Ann Stores, Inc. *		7,630		463,141
Jos. A. Bank Clothiers, Inc. *		7,626		351,635
Kirkland’s, Inc. *		4,654		71,113
LKQ Corp. *		40,509		962,494
Lumber Liquidators Holdings, Inc. *		6,533		152,088
MarineMax, Inc. *		6,291		56,808
Monro Muffler Brake, Inc.		8,877		290,100
New York & Co., Inc. *		10,302		71,599
NutriSystem, Inc. (a)		7,585		100,350
Office Depot, Inc. *		77,316		410,548
OfficeMax, Inc. *		24,781		340,491
Orbitz Worldwide, Inc. *		6,267		22,122
Overstock.com, Inc. *		4,668		71,187
Pacific Sunwear Of California, Inc. *		18,932		85,383
Penske Automotive Group, Inc. *		13,457		274,119
PetMed Express, Inc. (a)		6,743		100,403
Pier 1 Imports, Inc. *		33,175		334,404
RadioShack Corp.		35,378		523,594
Rent-A-Center, Inc.		18,942		626,223
Retail Ventures, Inc. *		6,002		105,035
Rue21, Inc. *		4,447		155,734
Saks, Inc. *		33,931		415,655
Sally Beauty Holdings, Inc. *		26,946		349,490
Select Comfort Corp. *		15,659		174,285
Shoe Carnival, Inc. *		2,502		64,902
Shutterfly, Inc. *		7,808		333,402
Signet Jewelers Ltd. *		24,110		1,057,706
Sonic Automotive, Inc., Class A		10,238		147,222
Stage Stores, Inc.		11,355		198,031
Stamps.com, Inc.		3,552		47,739
Stein Mart, Inc.		7,912		64,799
Systemax, Inc. *		3,014		41,171
The Buckle, Inc.		7,831		306,114
The Cato Corp., Class A		8,070		195,697
The Children’s Place Retail Stores, Inc. *		8,070		368,799
The Finish Line, Inc., Class A		14,637		255,562
The Men’s Wearhouse, Inc.		14,873		397,109
The Pep Boys-Manny, Moe & Jack		14,627		183,276
The Talbots, Inc. *		10,245		64,031
The Wet Seal, Inc., Class A *		29,614		117,568
Tractor Supply Co.		20,447		1,064,675

88 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Ulta Salon, Cosmetics & Fragrance, Inc. *		13,461		561,728
Vitacost.com, Inc. *(b)		5,776		16,462
Vitamin Shoppe, Inc. *		7,027		244,469
Williams-Sonoma, Inc.		27,269		984,138
Zumiez, Inc. *		6,035		157,332

				24,688,585

Semiconductors & Semiconductor Equipment 5.1%
Advanced Analogic Technologies, Inc. *		9,526		40,295
Advanced Energy Industries, Inc. *		10,341		166,697
Amkor Technology, Inc. *		28,603		210,804
ANADIGICS, Inc. *		18,970		103,007
Applied Micro Circuits Corp. *		19,442		204,141
Atheros Communications *		19,982		895,393
Atmel Corp. *		130,356		1,913,626
ATMI, Inc.��*		9,151		166,914
Brooks Automation, Inc. *		15,911		199,683
Cabot Microelectronics Corp. *		6,817		332,806
Cavium Networks, Inc. *		12,196		526,623
CEVA, Inc. *		5,735		130,758
Cirrus Logic, Inc. *		19,482		454,905
Cohu, Inc.		6,537		96,225
Conexant Systems, Inc. *		23,413		55,255
Cymer, Inc. *		7,875		398,475
Cypress Semiconductor Corp. *		45,330		950,117
Diodes, Inc. *		9,985		289,166
DSP Group, Inc. *		6,592		52,011
Entegris, Inc. *		37,939		330,828
Entropic Communications, Inc. *(a)		19,654		181,996
Evergreen Solar, Inc. *(a)		30,972		68,758
Exar Corp. *		9,023		58,379
Fairchild Semiconductor International, Inc. *		35,098		618,076
FEI Co. *		10,797		362,023
FormFactor, Inc. *		12,643		124,281
Hittite Microwave Corp. *		7,622		467,838
Inphi Corp. *		1,614		38,720
Integrated Device Technology, Inc. *		44,749		346,805
International Rectifier Corp. *		19,696		633,029
Intersil Corp., Class A		34,562		442,048
IXYS Corp. *		7,354		91,337
Kopin Corp. *		15,936		69,959
Kulicke & Soffa Industries, Inc. *		19,640		188,348
Lattice Semiconductor Corp. *		34,192		227,035
LTX-Credence Corp. *		14,883		133,054
MaxLinear, Inc., Class A *		3,836		40,355
Micrel, Inc.		14,294		192,111
Microsemi Corp. *		23,525		518,256
MKS Instruments, Inc. *		13,291		398,996
Monolithic Power Systems, Inc. *		10,267		158,625
Netlogic Microsystems, Inc. *		16,186		669,939
Novellus Systems, Inc. *		25,966		1,037,601
OmniVision Technologies, Inc. *		15,333		469,496
Pericom Semiconductor Corp. *		7,403		74,474
PMC-Sierra, Inc. *		64,560		510,024
Power Integrations, Inc.		8,117		323,381
Rambus, Inc. *		31,768		652,832
RF Micro Devices, Inc. *		76,807		576,052
Rubicon Technology, Inc. *(a)		4,899		111,795
Rudolph Technologies, Inc. *		8,915		98,778
Semtech Corp. *		17,491		414,187
Sigma Designs, Inc. *		9,146		125,117
Silicon Image, Inc. *		22,170		178,247
Silicon Laboratories, Inc. *		12,655		574,537
Skyworks Solutions, Inc. *		50,851		1,827,585
Spansion, Inc., Class A *		8,643		182,108
Standard Microsystems Corp. *		6,314		167,510
Supertex, Inc. *		3,273		74,821
Teradyne, Inc. *		51,995		968,667
Tessera Technologies, Inc. *		14,599		254,169
Trident Microsystems, Inc. *		21,090		28,471
TriQuint Semiconductor, Inc. *		43,047		613,420
Ultratech, Inc. *		6,465		159,815
Varian Semiconductor Equipment Associates, Inc. *		20,765		990,698
Veeco Instruments, Inc. *(a)		11,410		542,888
Volterra Semiconductor Corp. *		7,904		199,418
Zoran Corp. *		13,458		150,864

				24,854,652

Software & Services 8.2%
ACI Worldwide, Inc. *		9,461		296,224
Actuate Corp. *		13,312		63,498
Acxiom Corp. *		22,458		384,930
Advent Software, Inc. *		9,684		280,836
Ancestry.com, Inc. *		7,050		231,663
Archipelago Learning, Inc. *		2,690		28,729
Ariba, Inc. *		25,378		785,449
Aspen Technology, Inc. *		22,865		348,234
Blackbaud, Inc.		12,683		337,495
Blackboard, Inc. *(a)		9,540		333,995
Booz Allen Hamilton Holding Corp. *		4,573		84,555
Bottomline Technologies, Inc. *		8,983		198,614
BroadSoft, Inc. *		5,111		180,418
CACI International, Inc., Class A *		8,434		500,305
Cadence Design Systems, Inc. *		76,686		763,026
Cass Information Systems, Inc.		2,690		105,045
CIBER, Inc. *		14,266		66,622
CommVault Systems, Inc. *		11,309		413,118
Compuware Corp. *		62,206		700,440
comScore, Inc. *		7,055		194,224
Concur Technologies, Inc. *		12,912		671,811
Constant Contact, Inc. *		8,081		233,783
Convergys Corp. *		30,488		428,966
CSG Systems International, Inc. *		9,729		190,202
DealerTrack Holdings, Inc. *		11,373		229,507
Deltek, Inc. *		6,027		43,937
Demand Media, Inc. *		2,466		55,485
DemandTec, Inc. *		7,643		99,435
Dice Holdings, Inc. *		10,044		137,904
Digital River, Inc. *		11,145		374,249
EarthLink, Inc.		29,996		246,867
Ebix, Inc. *(a)		9,154		241,116
Echo Global Logistics, Inc. *(a)		4,327		51,145
Envestnet, Inc. *		2,204		27,660
Epicor Software Corp. *		14,348		147,784
EPIQ Systems, Inc.		9,280		128,157
Euronet Worldwide, Inc. *		14,041		253,721
Exlservice Holdings, Inc. *		4,361		96,901
Fair Isaac Corp.		11,836		330,816

See financial notes 89

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
FalconStor Software, Inc. *		6,307		30,715
FleetCor Technologies, Inc. *		3,562		113,948
Forrester Research, Inc.		4,082		147,687
Fortinet, Inc. *		12,401		506,457
Gartner, Inc. *		23,275		877,933
Global Cash Access Holdings, Inc. *		16,719		57,513
GSI Commerce, Inc. *		17,485		363,513
Heartland Payment Systems, Inc.		10,825		211,954
iGate Corp.		6,994		126,591
Informatica Corp. *		26,002		1,222,354
InfoSpace, Inc. *		10,559		85,106
Integral Systems, Inc. *		4,920		60,221
Interactive Intelligence, Inc. *		3,614		124,358
Internap Network Services Corp. *		16,956		115,301
Internet Capital Group, Inc. *		10,636		145,607
IntraLinks Holdings, Inc. *		5,380		151,662
j2 Global Communications, Inc. *		12,653		368,076
Jack Henry & Associates, Inc.		23,730		757,224
JDA Software Group, Inc. *		11,683		344,648
Kenexa Corp. *		5,784		134,131
Lawson Software, Inc. *		40,211		407,740
Limelight Networks, Inc. *		17,540		121,903
Lionbridge Technologies, Inc. *		14,026		51,616
Liquidity Services, Inc. *		4,389		70,531
LivePerson, Inc. *		13,452		134,924
LogMeIn, Inc. *		4,134		148,369
LoopNet, Inc. *		8,172		97,247
Manhattan Associates, Inc. *		6,278		202,152
ManTech International Corp., Class A *		6,218		268,618
Marchex, Inc., Class B		6,578		59,136
MAXIMUS, Inc.		5,111		378,214
Mediamind Technologies, Inc. *		4,110		55,814
Mentor Graphics Corp. *		30,230		480,657
MICROS Systems, Inc., Class A *		22,865		1,089,289
MicroStrategy, Inc., Class A *		2,690		319,707
ModusLink Global Solutions, Inc. *		11,576		79,874
MoneyGram International, Inc. *		19,960		55,090
Monotype Imaging Holdings, Inc. *		7,075		94,664
Motricity, Inc. *(a)		9,415		145,744
Move, Inc. *		39,746		84,262
NCI, Inc., Class A *		2,421		55,441
NetScout Systems, Inc. *		9,429		235,631
NetSuite, Inc. *		8,093		242,871
NeuStar, Inc., Class A *		21,047		531,437
NIC, Inc.		15,715		159,350
Novell, Inc. *		97,949		575,940
OpenTable, Inc. *		5,111		454,215
OPNET Technologies, Inc.		3,627		123,608
Parametric Technology Corp. *		32,869		778,995
Pegasystems, Inc.		4,421		178,078
Perficient, Inc. *		9,001		111,882
Progress Software Corp. *		18,616		546,566
QLIK Technologies, Inc. *		15,871		415,185
Quest Software, Inc. *		17,782		476,380
QuinStreet, Inc. *		7,552		164,558
Rackspace Hosting, Inc. *		29,367		1,083,936
Radiant Systems, Inc. *		9,513		163,148
RealD, Inc. *		9,420		211,479
RealNetworks, Inc. *		26,762		103,034
RealPage, Inc. *		8,494		210,651
Renaissance Learning, Inc.		1,953		20,975
RightNow Technologies, Inc. *		6,592		175,940
Rosetta Stone, Inc. *(a)		3,273		48,964
S1 Corp. *		14,020		91,551
Sapient Corp. *		29,981		355,275
SAVVIS, Inc. *		11,857		385,234
SciQuest, Inc. *		4,110		58,609
Smith Micro Software, Inc. *		8,999		84,321
Solarwinds, Inc. *		9,016		202,409
Solera Holdings, Inc.		19,393		990,594
Sourcefire, Inc. *		7,671		207,884
SRA International, Inc., Class A *		11,879		323,465
SS&C Technologies Holdings, Inc. *		5,918		115,934
Stream Global Services, Inc. *		9,998		31,494
SuccessFactors, Inc. *		20,071		720,750
Synchronoss Technologies, Inc. *		6,609		226,424
Syntel, Inc.		7,672		403,931
Take-Two Interactive Software, Inc. *		24,608		395,451
Taleo Corp., Class A *		11,152		360,098
TechTarget *		4,441		38,592
TeleCommunication Systems, Inc., Class A *		12,912		55,134
TeleNav, Inc. *		6,456		72,436
TeleTech Holdings, Inc. *		9,171		208,915
Terremark Worldwide, Inc. *		12,644		239,983
The Knot, Inc. *		8,999		90,260
The Ultimate Software Group, Inc. *		7,096		379,210
THQ, Inc. *		16,992		97,874
TIBCO Software, Inc. *		46,599		1,147,267
TiVo, Inc. *		33,193		341,224
TNS, Inc. *		7,801		147,049
Tyler Technologies, Inc. *		10,267		227,106
Unisys Corp. *		11,051		410,655
United Online, Inc.		24,030		144,420
ValueClick, Inc. *		23,756		354,677
VASCO Data Security International, Inc. *		7,830		70,235
VeriFone Systems, Inc. *		24,091		1,094,695
Verint Systems, Inc. *		4,102		141,027
VistaPrint N.V. *		11,836		606,122
Vocus, Inc. *		5,198		126,311
WebMD Health Corp. *		16,678		967,324
Websense, Inc. *		11,327		242,624
Wright Express Corp. *		11,056		563,856

				40,366,100

Technology Hardware & Equipment 6.5%
Acme Packet, Inc. *		14,801		1,113,627
ADTRAN, Inc.		17,583		799,675
Aeroflex Holding Corp. *		5,380		105,717
Anaren, Inc. *		4,131		87,660
Anixter International, Inc.		8,145		583,345
Arris Group, Inc. *		35,822		472,850
Aruba Networks, Inc. *		20,586		626,844
Aviat Networks, Inc. *		14,885		90,947
Avid Technology, Inc. *		8,192		180,716
AVX Corp.		15,157		241,754
Bel Fuse, Inc., Class B		3,069		67,211
Benchmark Electronics, Inc. *		17,216		324,694
BigBand Networks, Inc. *		14,084		36,618
Black Box Corp.		4,915		187,704
Blue Coat Systems, Inc. *		12,194		343,139

90 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Brightpoint, Inc. *		20,454		257,720
Calix, Inc. *(a)		6,468		115,066
Checkpoint Systems, Inc. *		11,436		249,076
Ciena Corp. *		26,189		722,031
Cognex Corp.		10,546		294,339
Coherent, Inc. *		6,844		422,617
Comtech Telecommunications Corp.		8,192		221,594
Comverge, Inc. *		6,010		30,591
CTS Corp.		9,959		118,114
Daktronics, Inc.		10,797		123,626
DG Fastchannel, Inc. *		7,275		240,875
Diebold, Inc.		18,698		657,422
Digi International, Inc. *		7,273		80,512
DTS, Inc. *		4,909		222,623
Echelon Corp. *		9,558		83,728
EchoStar Corp., Class A *		11,344		393,637
Electro Rent Corp.		5,198		83,220
Electro Scientific Industries, Inc. *		7,354		112,075
Electronics for Imaging, Inc. *		13,232		204,170
EMS Technologies, Inc. *		4,389		85,322
Emulex Corp. *		24,019		264,209
Extreme Networks, Inc. *		26,900		105,448
Fabrinet *		3,313		96,839
FARO Technologies, Inc. *		4,389		156,468
Finisar Corp. *		21,550		883,981
Harmonic, Inc. *		32,549		312,796
Hughes Communications, Inc. *		2,511		150,409
Hypercom Corp. *		13,796		137,822
Imation Corp. *		9,429		108,245
Infinera Corp. *		28,285		226,563
Insight Enterprises, Inc. *		13,483		246,604
InterDigital, Inc.		12,390		590,755
Intermec, Inc. *		13,290		149,247
Intevac, Inc. *		5,763		73,594
IPG Photonics Corp. *		7,552		429,860
Ixia *		13,268		232,853
JDS Uniphase Corp. *		61,738		1,523,076
KEMET Corp. *		10,136		140,890
L-1 Identity Solutions, Inc. *		24,762		294,915
Lexmark International, Inc., Class A *		21,860		820,406
Littelfuse, Inc.		6,456		341,070
Loral Space & Communications, Inc. *		3,348		253,310
Maxwell Technologies, Inc. *		6,593		119,399
Mercury Computer Systems, Inc. *		8,220		156,016
Meru Networks, Inc. *(a)		2,967		63,375
Methode Electronics, Inc.		11,076		129,589
MTS Systems Corp.		4,669		216,221
Multi-Fineline Electronix, Inc. *		3,027		86,633
National Instruments Corp.		26,240		816,851
NeoPhotonics Corp. *		1,096		20,112
NETGEAR, Inc. *		9,963		326,786
Newport Corp. *		10,517		175,108
Novatel Wireless, Inc. *		9,150		54,168
Oclaro, Inc. *		14,085		248,319
Oplink Communications, Inc. *		6,013		163,614
Opnext, Inc. *		7,164		30,017
OSI Systems, Inc. *		4,668		175,610
Park Electrochemical Corp.		5,649		179,638
Plantronics, Inc.		13,492		470,736
Plexus Corp. *		11,326		355,976
Polycom, Inc. *		24,294		1,161,253
Power-One, Inc. *(a)		15,934		131,137
Pulse Electronics Corp.		11,977		72,341
QLogic Corp. *		30,972		559,354
Quantum Corp. *		61,505		159,298
Riverbed Technology, Inc. *		41,604		1,717,829
Rofin-Sinar Technologies, Inc. *		7,921		307,176
Rogers Corp. *		4,380		206,561
Sanmina-SCI Corp. *		21,251		331,941
ScanSource, Inc. *		7,360		268,861
SeaChange International, Inc. *		6,831		64,485
ShoreTel, Inc. *		6,493		44,087
Silicon Graphics International Corp. *		8,191		127,042
Smart Modular Technologies (WWH), Inc. *		10,534		73,001
Sonus Networks, Inc. *		57,315		173,664
STEC, Inc. *(a)		12,105		247,305
Stratasys, Inc. *		5,782		262,387
Super Micro Computer, Inc. *		6,847		102,363
Sycamore Networks, Inc.		5,478		116,955
Symmetricom, Inc. *		12,995		73,552
Synaptics, Inc. *		9,545		281,578
SYNNEX Corp. *		6,750		238,140
Tech Data Corp. *		13,238		656,340
Tekelec *		19,639		150,631
TTM Technologies, Inc. *		15,195		266,520
Universal Display Corp. *		9,278		390,511
UTStarcom, Inc. *		37,989		77,877
ViaSat, Inc. *		11,324		471,192
Vishay Intertechnology, Inc. *		48,433		845,156
Vishay Precision Group, Inc. *		3,558		58,885
X-Rite, Inc. *		8,167		37,977
Zebra Technologies Corp., Class A *		16,688		622,796

				31,606,582

Telecommunication Services 0.9%
AboveNet, Inc.		6,288		408,028
Alaska Communications Systems Group, Inc.		12,675		129,158
Atlantic Tele-Network, Inc.		2,533		98,762
Cbeyond, Inc. *		8,638		120,759
Cincinnati Bell, Inc. *		55,977		147,779
Cogent Communications Group, Inc. *		12,430		183,218
Consolidated Communications Holdings, Inc.		7,270		132,968
Fairpoint Communications, Inc. *		6,028		138,644
General Communication, Inc., Class A *		11,437		138,273
Global Crossing Ltd. *		9,000		141,750
Globalstar, Inc. *(a)		21,277		28,086
ICO Global Communications (Holdings) Ltd. *		34,485		78,971
IDT Corp., Class B		3,897		101,439
Iridium Communications, Inc. *		11,602		109,059
Leap Wireless International, Inc. *		18,151		221,805
Level 3 Communications, Inc. *		470,014		658,020
Neutral Tandem, Inc. *		9,959		171,295
NTELOS Holdings Corp.		7,807		151,612
PAETEC Holding Corp. *		35,531		135,018
Premiere Global Services, Inc. *		15,705		105,380
Shenandoah Telecommunications Co.		6,744		118,020
tw telecom, Inc. *		42,233		785,534
USA Mobility, Inc.		6,465		96,458

See financial notes 91

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Vonage Holdings Corp. *		38,254		169,083

				4,569,119

Transportation 2.1%
AirTran Holdings, Inc. *		37,465		273,495
Alaska Air Group, Inc. *		10,013		595,273
Alexander & Baldwin, Inc.		11,651		488,643
Allegiant Travel Co.		4,393		181,299
AMERCO *		1,624		156,862
Arkansas Best Corp.		7,317		173,559
Atlas Air Worldwide Holdings, Inc. *		7,532		514,285
Avis Budget Group, Inc. *		28,859		442,120
Baltic Trading Ltd.		4,901		46,412
Celadon Group, Inc. *		6,291		91,912
Con-way, Inc.		15,127		492,535
Dollar Thrifty Automotive Group, Inc. *		7,801		414,311
Eagle Bulk Shipping, Inc. *(a)		16,495		67,794
Forward Air Corp.		8,081		239,440
Genco Shipping & Trading Ltd. *		8,646		104,962
Genesee & Wyoming, Inc., Class A *		10,829		564,083
Hawaiian Holdings, Inc. *		13,093		86,938
Heartland Express, Inc.		15,694		260,363
Horizon Lines, Inc., Class A		11,068		50,581
Hub Group, Inc., Class A *		10,593		370,331
JetBlue Airways Corp. *		68,946		392,992
Kirby Corp. *		15,163		839,120
Knight Transportation, Inc.		16,514		307,326
Landstar System, Inc.		14,257		634,009
Marten Transport Ltd.		4,389		93,705
Old Dominion Freight Line, Inc. *		12,708		391,152
Pacer International, Inc. *		11,638		63,194
Patriot Transportation Holding, Inc. *		1,614		40,447
RailAmerica, Inc. *		5,485		82,275
Republic Airways Holdings, Inc. *		12,000		76,080
Roadrunner Transportation Systems, Inc. *		3,357		47,300
SkyWest, Inc.		15,463		255,140
Swift Transporation Co. *		19,752		284,824
Universal Truckload Services, Inc. *		3,562		57,313
US Airways Group, Inc. *		45,334		390,326
UTI Worldwide, Inc.		29,321		583,488
Werner Enterprises, Inc.		14,597		343,759

				10,497,648

Utilities 2.5%
ALLETE, Inc.		8,176		309,053
American States Water Co.		5,182		173,804
Avista Corp.		16,185		361,249
Black Hills Corp.		11,124		342,842
California Water Service Group		5,472		193,052
Central Vermont Public Service Corp.		3,069		65,247
CH Energy Group, Inc.		4,396		215,668
Chesapeake Utilities Corp.		2,563		104,673
Cleco Corp.		17,052		551,632
Connecticut Water Service, Inc.		2,690		68,568
Dynegy, Inc. *		29,226		169,218
El Paso Electric Co. *		12,217		343,298
GenOn Energy, Inc. *		215,596		873,164
Great Plains Energy, Inc.		38,288		735,130
Hawaiian Electric Industries, Inc.		26,499		639,951
IDACORP, Inc.		13,751		518,963
MGE Energy, Inc.		6,507		266,592
Middlesex Water Co.		4,611		86,548
New Jersey Resources Corp.		11,692		489,076
Nicor, Inc.		12,698		669,692
Northwest Natural Gas Co.		7,801		366,647
NorthWestern Corp.		10,269		305,092
Ormat Technologies, Inc.		5,198		130,210
Piedmont Natural Gas Co., Inc.		19,108		559,864
PNM Resources, Inc.		22,120		294,417
Portland General Electric Co.		20,849		488,284
SJW Corp.		3,613		89,675
South Jersey Industries, Inc.		8,401		460,879
Southwest Gas Corp.		12,740		495,204
The Empire District Electric Co.		11,648		251,946
The Laclede Group, Inc.		6,011		233,768
UIL Holdings Corp.		13,719		421,722
Unisource Energy Corp.		10,083		367,626
Unitil Corp.		3,058		69,753
WGL Holdings, Inc.		14,116		536,408

				12,248,915

Total Common Stock
(Cost $422,364,477)				489,011,632




Other Investment Company 0.1% of net assets

Money Fund 0.1%
State Street Institutional Liquid Reserves Fund - Institutional Class		534,928		534,928

Total Other Investment Company
(Cost $534,928)				534,928




Corporate Bond 0.0% of net assets

Diversified Financials 0.0%
GAMCO Investors, Inc. 0.0%, 12/31/15		3,100		1,994

Total Corporate Bond
(Cost $3,120)				1,994



End of Investments



Collateral Invested for Securities on Loan 1.2% of net assets


State Street Navigator Securities Lending Prime Portfolio		5,735,648		5,735,648

Total Collateral Invested for Securities on Loan
(Cost $5,735,648)				5,735,648



End of Collateral Invested for Securities on Loan

92 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued

At 2/28/11, the tax basis cost of the fund’s investments was $422,332,949 and the unrealized appreciation and depreciation were $74,302,155 and $(8,086,550), respectively, with a net unrealized appreciation of $66,215,605.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.

See financial notes 93

Schwab U.S. Small-Cap ETF

Statement of

Assets and Liabilities

As of February 28, 2011 (unaudited)



Assets

Investments, at value including securities on loan of $5,492,260 (cost $422,902,525)		$489,548,554
Collateral invested for securities on loan		5,735,648
Receivables:
Investments sold		164,109
Fund shares sold		9,009,600
Dividends		241,696
Income from securities on loan		9,396
Interest	+	127

Total assets		504,709,130

Liabilities

Collateral held for securities on loan		5,735,648
Payables:
Investments bought		8,996,002
Investment adviser fees	+	5,116

Total liabilities		14,736,766

Net Assets

Total assets		504,709,130
Total liabilities	−	14,736,766

Net assets		$489,972,364

Net Assets by Source
Capital received from investors		422,849,143
Net investment income not yet distributed		742,573
Net realized capital losses		(315,083	)
Net unrealized capital gains		66,695,731

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$489,972,364

13,450,001

$36.43

94 See financial notes

Schwab U.S. Small-Cap ETF

Statement of

Operations

For September 1, 2010 through February 28, 2011 (unaudited)



Investment Income

Dividends (net of foreign withholding tax of $138)		$2,543,130
Interest		685
Securities on loan	+	9,396

Total investment income		2,553,211

Expenses

Investment adviser fees		205,906

Total expenses	−	205,906

Net investment income		2,347,305

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(635,261	)
Net realized gains on in-kind redemptions	+	790,881

Net realized gains		155,620
Net unrealized gains on investments	+	88,701,739

Net realized and unrealized gains		88,857,359

Net increase in net assets resulting from operations		$91,204,664

See financial notes 95

Schwab U.S. Small-Cap ETF

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.



Operations


9/1/10-2/28/11				*10/30/09-8/31/10**
Net investment income		$2,347,305			$1,132,581
Net realized gains		155,620			5,754,921
Net unrealized gains (losses)	+	88,701,739			(22,006,008	)

Net increase (decrease) in net assets resulting from operations		91,204,664			(15,118,506	)

Distributions to Shareholders

Distributions from net investment income		($1,860,925	)		($881,000	)

Transactions in Fund Shares

9/1/10-2/28/11

10/30/09*-8/31/10

SHARES

VALUE

SHARES

VALUE

Shares Sold

6,350,000

$213,014,904

9,300,001

$265,207,908

Shares Redeemed

(200,000

)

(5,695,887

)

(2,000,000

)

(55,898,794

)

Net transactions in fund shares

6,150,000

$207,319,017

7,300,001

$209,309,114

Shares Outstanding and Net Assets

9/1/10-2/28/11

10/30/09*-8/31/10

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

7,300,001

$193,309,608

—

$—

Total increase

6,150,000

296,662,756

7,300,001

193,309,608

End of period

13,450,001

$489,972,364

7,300,001

$193,309,608

Net investment income not yet distributed

$742,573

$256,193


*		Commencement of operations.

96 See financial notes

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 International Equity ETF
Schwab U.S. Large-Cap ETF		Schwab International Small-Cap Equity ETF
Schwab U.S. Large-Cap Growth ETF		Schwab Emerging Markets Equity ETF
Schwab U.S. Large-Cap Value ETF		Schwab U.S. TIPS ETF
Schwab U.S. Mid-Cap ETF		Schwab U.S. Short-Term U.S. Treasury ETF
Schwab U.S. Small-Cap ETF		Schwab U.S. Intermediate-Term U.S. Treasury ETF
Schwab U.S. REIT ETF

The funds issue and redeem shares at their net assets value (“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. Schwab U.S. Mid-Cap ETF commenced operations on January 12, 2011.

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:


	•	Bonds and notes: valued at the bid or at halfway between the most recent bid and asked quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by an independent bond-pricing service.

	•	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.

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):


	•	Underlying funds: valued at their respective net asset values.

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

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 three levels of the fair value hierarchy are 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, 2011:

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)		$688,045,405		$—		$—		$688,045,405
Other Investment Company(a)		251,622		—		—		251,622
Corporate Bond(a)		—		1,287		—		1,287

Total		$688,297,027		$1,287		$—		$688,298,314

Other Financial Instruments
Collateral Invested for Securities on Loan		$1,690,839		$—		$—		$1,690,839

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)		$485,299,314		$—		$—		$485,299,314
Other Investment Company(a)		157,893		—		—		157,893

Total		$485,457,207		$—		$—		$485,457,207

Other Financial Instruments
Collateral Invested for Securities on Loan		$839,035		$—		$—		$839,035

Schwab U.S. 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)		$298,560,435		$—		$—		$298,560,435
Other Investment Company(a)		68,229		—		—		68,229

Total		$298,628,664		$—		$—		$298,628,664

Other Financial Instruments
Collateral Invested for Securities on Loan		$623,485		$—		$—		$623,485

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)		$177,692,428		$—		$—		$177,692,428
Other Investment Company(a)		93,278		—		—		93,278

Total		$117,785,706		$—		$—		$117,785,706

Other Financial Instruments
Collateral Invested for Securities on Loan		$211,677		$—		$—		$211,677

Schwab U.S. Mid-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)		$40,777,641		$—		$—		$40,777,641
Other Investment Company(a)		15,205		—		—		15,205

Total		$40,792,846		$—		$—		$40,792,846

Other Financial Instruments
Collateral Invested for Securities on Loan		$273,842		$—		$—		$273,842

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

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)		$488,995,170		$—		$16,462		$489,011,632
Corporate Bond(a)		—		1,994		—		1,994
Other Investment Company(a)		534,928		—		—		534,928

Total		$489,530,098		$1994		$16,462		$489,548,554

Other Financial Instruments
Collateral Invested for Securities on Loan		$5,735,648		$—		$—		$5,735,648

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

Realized

Unrealized

Net

Gross

as of

August 31,

Gain

Gains

Purchases

Transfers

February 28,

Investments in Securities

2010

(Losses)

(Sales)

out

2011

Common Stock

$—

$(72

)

$(16,570

)

$12,658

$20,446

$—

$16,462

All net realized and change in unrealized gains (losses) on Level 3 investments 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 Schwab U.S. Small-Cap ETF at February 28, 2011 are ($16,570).

In January 2010, the Financial Accounting Standards Board issued new guidance requiring reporting entities to make new disclosures about amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3, and information on purchases, sales, issuances and settlements of Level 3 securities on a gross basis. The new and revised disclosures are required to be implemented for annual and interim periods beginning after December 15, 2009, except for the disclosures surrounding purchases, sales, issuances and settlements of Level 3 fair value measurements on a gross basis, which are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years.

The funds have adopted the new guidance for the current period ended February 28, 2011. There were no significant transfers between Level 1 and Level 2 for the period ended February 28, 2011. Management is currently evaluating the impact of the adoption of the other provisions of the new guidance on the funds’ financial statements.

(b) Portfolio Investments:

Securities Lending: Under the Securities Lending Program, a fund (the “lender”) may make short-term loans of their securities to another party (the “borrower”). When the fund lends securities, the borrower provides cash, U.S. government securities or letters of credit as collateral against the loans in an amount at least equal to 100% of the market value of the loaned securities. The cash collateral of securities loaned is invested in money market portfolios registered under Rule 2a-7 of the 1940 Act. The investments of collateral are mark-to-market daily and the value of the collateral must be at least 100% of the market value of the loan securities each day. If the value of the collateral falls below 100%, it will be adjusted the following day.

(c) 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.

100

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(d) 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.

(e) Expenses:

Expenses that are specific to a fund within the trust are charged directly to that fund. The investment adviser will pay the operating expenses of the funds, excluding interest expenses, taxes, any brokerage expenses, and extraordinary or non-routine expenses.

(f) Distributions to Shareholders:

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

(g) 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, and these estimates may be material.

(h) 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.

(i) 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 the fund 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.

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, 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.

101

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

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.

Certain funds may not fully replicate the index and may hold securities not included in the index. As a result, these funds are subject to the risk that the investment adviser’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. Because these funds use a sampling approach, they may not track the return of the index as well as they would if the funds purchased all of the equity securities in the index.

A fund’s returns may not match the return of its index due to differences between a fund’s securities and those in the index. Tracking error also may be attributable to a fund’s inability to match the securities’ weighting to its index or due to regulatory, operational or liquidity constraints. 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 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:

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 pursuant to an Investment Advisory 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.

Schwab

Market ETF

Large-Cap ETF

Growth ETF

Value ETF

Mid-Cap ETF

Small-Cap ETF

0.06%

0.08%

0.13%

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

102

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

The funds may engage in certain transactions involving affiliates, including investing in outstanding shares of The Charles Schwab Corporation. Below is a summary of investing and income activity involving The Charles Schwab Corporation during the period ended February 28, 2011:


	Balance
	of Shares							Balance				Realized			Dividends
	Held at							of Shares		Market		Gain (Loss)			Received
	Beginning		Gross		Gross			Held at		Value at		During			During
Fund	of Period		Additions		Sales			2/28/11		2/28/11		Period			Period

Schwab U.S. Broad Market ETF		22,134		23,764		(1,036	)		44,862		$851,032		$3,208			$4,173
Schwab U.S. Large-Cap ETF		25,882		14,220		(4,490	)		35,612		675,560		12,747			3,887
Schwab U.S. Large-Cap Growth ETF		22,422		23,807		(1,297	)		44,932		852,360		(5,535	)		4,177

The funds may engage in 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. During the period ended February 28, 2011, 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. The funds had no interfund borrowing or lending activity 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.

7. Purchases and Sales/Maturities of Investment Securities:

For the period ended February 28, 2011, purchases and sales/maturities 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		$13,278,122		$9,525,170
Schwab U.S. Large-Cap ETF		12,163,937		9,927,937
Schwab U.S. Large-Cap Growth ETF		9,399,721		7,977,862
Schwab U.S. Large-Cap Value ETF		5,391,268		4,778,002
Schwab U.S. Mid-Cap ETF		348,855		142,185
Schwab U.S. Small-Cap ETF		22,569,455		13,931,458

103

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

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, 2011 were as follows:


	In-kind Purchases		In-kind Sales

Schwab U.S. Broad Market ETF		$330,923,179		$14,840,126
Schwab U.S. Large-Cap ETF		179,432,128		51,917,903
Schwab U.S. Large-Cap Growth ETF		145,991,724		1,347,160
Schwab U.S. Large-Cap Value ETF		70,892,338		1,272,853
Schwab U.S. Mid-Cap ETF		39,575,957		—
Schwab U.S. Small-Cap ETF		210,329,150		5,646,618

For period ended February 28, 2011, 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, 2011 are disclosed in the Funds’ Statements of Operations.

9. Federal Income Taxes

For tax purposes, net realized capital losses occurring after October 31, may be deferred and treated as occurring on the first day of the following fiscal year. As of August 31, 2010, capital losses deferred for each fund were as follows:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Market ETF

Large-Cap ETF

Growth ETF

Value ETF

Mid-Cap ETF

Small-Cap ETF

Deferred capital losses

$132,136

$115,105

$90,359

$113,939

$—

$374,065

Management has reviewed the funds’ tax positions taken for its open income tax period ended August 31, 2010, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended August 31, 2010, the funds did not incur any interest or penalties.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (“the Act”) was signed by The President. The Act is the first major piece of legislation affecting Regulated Investment Companies (“RICs”) since 1986 and it modernizes several of the federal income and excise tax provisions related to RICs.

Certain of the enacted provisions include:

Post-enactment capital losses may now be carried forward indefinitely, but must retain the character of the original loss. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital, irrespective of the character of the original loss.

The Act contains simplification provisions, which are aimed at preventing disqualification of a RIC for “inadvertent” failures of the asset diversification and/or qualifying income tests. Additionally, the Act exempts RICs from the preferential dividend rule, and repeals the 60-day designation requirement for certain types of pay-through income and gains.

Finally, the Act contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions.

104

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

9. Federal Income Taxes (continued):

Except for the simplification provisions related to RIC qualification, the Act is effective for taxable years beginning after December 22, 2010. The provisions related to RIC qualification are effective for taxable years for which the extended due date of the tax return is after December 22, 2010.

10. Subsequent Events:

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

105

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 November 18, 2010, in part, for the purpose of considering whether to appoint Charles Schwab Investment Management, Inc. (“CSIM”) as investment adviser to the Schwab U.S. Mid-Cap ETF (the “Fund”) 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 Fund under the Agreement. 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 Fund. 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 Fund under the Agreement, including the resources of CSIM and its affiliates dedicated to the Fund;

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

3.	the 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 Fund grows and whether fee levels in the Agreement relating to the Fund 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 Fund and the resources of CSIM and its affiliates will dedicate to the Fund. 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 Fund 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 Fund and the resources of CSIM and its affiliates dedicated to the Fund supported approval of the Agreement with respect to the Fund.

Performance. With regard to Fund performance, since the Fund had not commenced operations and therefore did not have any performance of its 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 Fund and the appropriateness of the benchmark that would be used to compare the performance of the Fund. 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 Fund.

Fund Expenses. With respect to the Fund’s expenses, the trustees considered the rate of compensation called for by the Agreement, and the Fund’s estimated net operating expense ratio in comparison to those of other comparable exchange-traded funds. The Board evaluated the Fund’s 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 Fund are reasonable and supported approval of the Agreement with respect to the Fund.

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 Fund, such as whether, by virtue of its management of the Fund, CSIM obtains investment information or other research resources that aid it in providing advisory services to other clients. The Trustees considered whether the varied

106

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 Fund 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 Fund.

Economies of Scale. Recognizing that the Fund 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 the Fund’s shareholders through various efficiencies that may result from increases in the Fund’s 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 Fund, although the Board will continue to monitor fees as the Fund grows 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 Fund 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 Fund and concluded that the compensation under the Agreement relating to the Fund 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.

107

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 86 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. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Retired. Consulting Managing Director, PIMCO (investment adviser) (January 2003 – December 2008); Managing Director, PIMCO (February 1999 – December 2002); President and Trustee, PIMCO Funds and PIMCO Variable Insurance Trust (investments) (February 1994 – May 2005).	13	Independent Director and Chairman of Corporate Governance/Nominating Committee, PS Business Parks, Inc. (2005 – present). Trustee and member of Nominating/Corporate Governance Committee, PIMCO Funds (investment company consisting of 84 portfolios) (1997 – 2008). Trustee and member of Nominating/Corporate Governance Committee, PIMCO Variable Insurance Trust (investment company consisting of 16 portfolios) (1997 – 2008). Trustee and Chairman, PIMCO Strategic Global Government Fund (investment company consisting of one portfolio) (1997 – 2008). Trustee, PCIM Fund, Inc. (investment company consisting of one portfolio) (1997 – 2008).


Mark A. Goldfarb 1952 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Founder and Managing Director, SS&G Financial Services (financial services) (May 1987 – present).	13	None


Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Advisor (June 2008 – present) and Chief Executive Officer (January 1998 – January 2008), Asset International, Inc. (publisher of financial services information); Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (June 2008 – present).	13	None

108

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. and The Charles Schwab Corporation. Since October 2008, Director, The Charles Schwab Corporation. Since May 2008, Director, Charles Schwab & Co., Inc. and Schwab Holdings, Inc. Since 2006, Director, Charles Schwab Bank. 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. Until October 2008, President and Chief Operating Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation.	86	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

Marie Chandoha 1961 President and Chief Executive Officer (Officer of Schwab Strategic Trust since 2010.)		Executive Vice President, Charles Schwab & Co., Inc. (Sept. 2010 – present); Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer, (Sept. 2010 – present), Charles Schwab Investment Management, Inc.; President and Chief Executive Officer, Schwab Funds, Laudus Funds and Schwab ETFs (Dec. 2010 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – August 2010); Co-Head and Senior Portfolio Manager, Wells Capital Management (June 1999 – March 2007).


George Pereira 1964 Treasurer and Principal Financial Officer (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President and Chief Financial Officer (Nov. 2004 – present); Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present) and Schwab ETFs (Oct. 2009 – present); Director, Charles Schwab Worldwide Fund, PLC and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present); Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds (June 2006 – June 2007).


Catherine MacGregor 1964 Vice President and Assistant Secretary (Officer of Schwab Strategic Trust since 2009.)		Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk, Laudus Funds (March 2007 – present); Vice President and Assistant Clerk, Schwab Funds (Dec. 2005 – present) and Schwab ETFs (Oct. 2009 – present).


Michael Haydel 1972 Vice President (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President (March 2011 – present), Vice President (2004 – March 2011), Asset Management Client Services, Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Anti-Money Laundering Officer (Oct. 2005 – Feb. 2009), Laudus Funds; Vice President, Schwab Funds (June 2007 – present) and Schwab ETFs (Oct. 2009 – present).


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.

109

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.

gross domestic product (GDP) The output of goods and services produced by labor and property located in the United States.

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. With a weighted median (the type that is calculated for these funds), half of the fund’s assets are invested in stocks that are larger than the median market cap, and half in stocks that are smaller.

MSCI EAFE (Europe, Australasia, Far East) Index A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

MSCI Emerging Markets Index A free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

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.

S&P 500 Index A market capitalization index that is designed to measure the performance of 500 leading publicly held companies in leading industries of the U.S. economy.

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.

110

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. Mid-Cap ETF^tm

Schwab U.S. Small-Cap ETF^tm

Schwab U.S. REIT ETF^tm

International ETFs

Schwab International Equity ETF^tm

Schwab International Small-Cap Equity ETF^tm

Schwab Emerging Markets Equity ETF^tm

Fixed Income ETFs

Schwab Short-Term U.S. Treasury ETF^tm

Schwab Intermediate-Term U.S. Treasury ETF^tm

Schwab U.S. TIPS 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.

MFR54789-01

Semiannual report dated February 28, 2011 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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February 28, 2011

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In This Report



Performance at a Glance		2

From the President		3

Investment Environment		4

Fund Management		5

Schwab International Equity ETF™		6

Schwab International Small-Cap Equity ETF™		8

Schwab Emerging Markets Equity ETF™		10

Fund Expenses		12

Financial Statements		13

Financial Notes		63

Trustees and Officers		74

Glossary		76

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

Performance at a Glance


Total Return for the Report Period*


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

NAV Return¹			24.03%
Market Price Return¹			24.99%
FTSE Developed ex-US Index			24.21%
ETF Category: Morningstar Foreign Large-Cap Blend²			30.19%

Performance Details			pages 6-7



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

NAV Return¹			29.26%
Market Price Return¹			29.76%
FTSE Developed Small Cap ex-US Liquid Index			29.53%
ETF Category: Morningstar Foreign Small/Mid Growth²			29.05%

Performance Details			pages 8-9



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

NAV Return¹			14.70%
Market Price Return¹			15.53%
FTSE All-Emerging Index			14.93%
ETF Category: Morningstar Diversified Emerging Markets²			14.05%

Performance Details			pages 10-11

Index ownership — “FTSE^®” is a trademark jointly owned by the London Stock Exchange plc and The Financial Times Limited and is used by FTSE International Limited (“FTSE”) under license. FTSE does not sponsor, endorse or promote Schwab ETFs and does not accept any liability in relation to their issue, operation and trading.


*	The report period covers the six months beginning September 1, 2010 through February 28, 2011.

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 Price 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.

²	The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.

2 Schwab International ETFs

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.

Over the last six months, the global equity markets rebounded from the 2008 financial crisis.

Dear Shareholder,

It is a pleasure to write to you in connection with the accompanying semiannual report for the Schwab International ETFs for the six-month period that ended February 28, 2011.

Over the last six months, the global equity markets rebounded from the 2008 financial crisis. Currencies overseas appreciated and many countries experienced robust economic growth, boosted by strong corporate earnings. The United States, an important trading partner for many international companies, began to show signs of positive economic trends, rallied by the U.S. Federal Reserve’s actions to spur economic growth through accommodative monetary policy.

The global economy was not without its hiccups, however. By the end of 2010, Europe’s weakest economies had received help from their stronger neighbor nations. Political upheaval in the Middle East and northern Africa roiled oil and other commodities markets. Inflation also began to concern many policy makers and investors who viewed the Federal Reserve’s monetary policy as too stimulative.

Despite these issues, international equities rewarded investors with double-digit positive returns, as evidenced by the ETFs’ three comparative indexes. A broad index of large and mid-capitalization companies in developed countries outside the United States, the FTSE Developed ex-US Index, returned 24.2% during the reporting period. The FTSE Developed Small Cap ex-US Liquid Index of small capitalization stocks overseas returned 29.5% and the FTSE All-Emerging Index of large- and mid-capitalization stocks in developing countries returned 14.9%.

All three of the Schwab International ETFs generated investment returns that were consistent with returns of their respective comparative indexes. For details about each fund’s performance, please see the managers’ discussion and analysis in the following pages.

Thank you for investing in the Schwab International ETFs. We encourage you to review your investment portfolio regularly to make sure it meets your current financial plan. For answers to questions you may have or to consult our website for more information, please visit www.schwabetfs.com. We are also happy to hear from you at 1-800-435-4000.

Sincerely,

Schwab International ETFs 3

The Investment Environment

Overall, the U.S. and global equity markets had strong returns that provided investors willing to take on the associated risks with the opportunity for capturing market returns.

Asset Class Performance Comparison % returns during the report period

This graph compares the performance of various asset classes during the report period. Final performance figures for the period are in the key below.



		27.73%		S&P 500^{^®} Index: measures U.S. large-cap stocks

		37.55%		Russell 2000^{^®} Index: measures U.S. small-cap stocks

		23.89%		MSCI EAFE^{^®} Index: measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East

		−0.83%		Barclays Capital U.S. Aggregate Bond Index: measures the U.S. bond market

		0.07%		Three-Month U.S. Treasury Bills (T-bills): measures short-term U.S. Treasury obligations

Data source: Index provider websites and Charles Schwab Investment Management, Inc.

Nothing in this report represents a recommendation of a security by the investment adviser.

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

4 Schwab International ETFs

Fund Management



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

		Ferian Juwono, CFA, a managing director and portfolio manager of the Adviser, has day-to-day responsibility for co-management of the funds. Prior to joining the firm in May 2010, he was a portfolio manager at a major asset management firm for three years. Before that position, he was a senior business analyst at a major financial firm for nearly two years. In addition, he was a senior financial analyst at a regional banking firm for four years.

Schwab International ETFs 5

Schwab International Equity ETF™

The Schwab International Equity ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the FTSE Developed ex-US Index (the index). The index includes the top 90% of market capitalization companies from eligible Global Equity ex U.S. Investable Stock (GEIS) securities in developed markets, as defined by FTSE. The index is comprised of approximately 85% large-cap and 15% mid-cap stocks. The fund invests in a representative sample of securities included in the index that collectively has a similar profile to the index. Due to the use of representative sampling, the fund may not hold all of the securities included in the index.

During the six-month period that ended February 28, 2011, the fund’s market price return was 24.99% and its NAV return was 24.03%. (For an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 24.21% during the same period.

All countries reported positive returns for the fund and the index. The best performing markets were Norway, Austria and Sweden, all returning over 30%, while most Asian markets reported lower returns. The United Kingdom and Japan, both with average weights of over 17% of the fund and index, were the top contributors, while Greece was the bottom contributor to the fund and index returns.

As of 2/28/11:

Statistics


Number of Holdings		862
Weighted Average Market Cap ($ x 1,000,000)		$50,178
Price/Earnings Ratio (P/E)		22.6
Price/Book Ratio (P/B)		1.6
Portfolio Turnover Rate²		4%

Sector Weightings % of Investments


Financials		25.4%
Industrials		12.5%
Materials		11.9%
Consumer Discretionary		9.7%
Energy		9.3%
Consumer Staples		9.0%
Health Care		6.4%
Information Technology		5.8%
Telecommunication Services		5.1%
Utilities		4.7%
Other		0.2%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Nestle S.A. - Reg’d		1.4%
HSBC Holdings plc		1.4%
Vodafone Group plc		1.1%
BHP Billiton Ltd.		1.0%
BP plc		1.0%
Novartis AG - Reg’d		0.9%
Total S.A.		0.9%
Royal Dutch Shell plc, A Shares		0.9%
Samsung Electronics Co., Ltd. GDR - Reg’d		0.8%
Siemens AG - Reg’d		0.8%
Total		10.2%

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

Source of Sector Classification: S&P and MSCI.


¹		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

6 Schwab International ETFs

Schwab International Equity ETF^tm

Performance Summary as of 2/28/11

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, 2011
Performance of a Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab International Equity ETF^tm (11/3/09)
NAV Return²		24.03	%		20.78	%		14.69	%
Market Price Return²		24.99	%		21.02	%		15.29	%
FTSE Developed ex-US Index		24.21	%		21.45	%		15.02	%
ETF Category: Morningstar Foreign Large Blend³		30.19	%		24.57	%		17.97	%

Fund Expense Ratio⁴: 0.13%

Style Assessment⁵

Country Weightings % of Investments


Japan			17.9%
United Kingdom			16.1%
Canada			9.1%
France			8.8%
Australia			7.2%
Germany			7.0%
Switzerland			6.4%
Republic of Korea			3.9%
Netherlands			3.7%
Hong Kong			3.6%
Other Countries			16.3%
Total			100.0%

International investing may involve risk of capital loss from unfavorable fluctuation in currency values, 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		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 Price 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.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		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 2/28/11, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab International ETFs 7

Schwab International Small-Cap Equity ETF™

The Schwab International Small-Cap Equity ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the FTSE Developed Small Cap ex-US Liquid Index (the index). The index includes the bottom 10% of market capitalization from eligible Global Equity ex U.S. Investable Stock (GEIS) securities with a minimum float-adjusted market capitalization of $150M in developed markets, as defined by FTSE. The fund invests in a representative sample of securities included in the index that collectively has a similar profile to the index. Due to the use of representative sampling, the fund may not hold all of the securities included in the index.

During the six-month period that ended February 28, 2011, the fund’s market price return was 29.76% and its NAV return was 29.26%. (For an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 29.53% during the same period.

All countries reported positive returns for the fund and the index. The best performing markets were Norway and Sweden, both returning over 40%, while most Asian markets reported lower returns. Canada, with an average weight of over 19% of the fund and index, was the top contributor, while Greece and New Zealand were the bottom contributors to the fund and index returns.

As of 2/28/11:

Statistics


Number of Holdings		899
Weighted Average Market Cap ($ x 1,000,000)		$2,389
Price/Earnings Ratio (P/E)		38.5
Price/Book Ratio (P/B)		1.6
Portfolio Turnover Rate²		10%

Sector Weightings % of Investments


Industrials		23.2%
Financials		17.0%
Consumer Discretionary		15.1%
Materials		14.8%
Energy		8.9%
Information Technology		8.1%
Consumer Staples		5.4%
Health Care		4.3%
Utilities		2.0%
Telecommunication Services		0.9%
Other		0.3%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Subsea 7 S.A.		0.5%
Onex Corp.		0.3%
Athabasca Oil Sands Corp.		0.3%
Viterra, Inc.		0.3%
Gildan Activewear, Inc.		0.3%
Metro, Inc., A Shares		0.3%
The Weir Group plc		0.3%
Sino-Forest Corp.		0.3%
Sulzer AG - Reg’d		0.3%
Hexagon AB, B Shares		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		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

8 Schwab International ETFs

Schwab International Small-Cap Equity ETF^tm

Performance Summary as of 2/28/11

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, 2011
Performance of a Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab International Small-Cap Equity ETF^tm (1/14/10)
NAV Return²		29.26	%		30.87	%		19.02	%
Market Price Return²		29.76	%		30.87	%		19.84	%
FTSE Developed Small Cap ex-US Liquid Index		29.53	%		32.34	%		20.10	%
ETF Category: Morningstar Foreign Small/Mid Growth³		29.05	%		28.75	%		16.60	%

Fund Expense Ratio⁴: 0.35%

Style Assessment⁵

Country Weightings % of Investments


Canada			17.3%
United Kingdom			17.3%
Japan			13.2%
Australia			6.1%
Germany			5.5%
Switzerland			5.3%
France			4.9%
Hong Kong			4.1%
Sweden			3.7%
Republic of Korea			2.9%
Other Countries			19.7%
Total			100.0%

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		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 Price 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.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		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 2/28/11, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab International ETFs 9

Schwab Emerging Markets Equity ETF™

The Schwab Emerging Markets Equity ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the FTSE All-Emerging Index (the index). The index includes the top 90% of market capitalization from eligible Global Equity ex U.S. Investable Stock (GEIS) securities in emerging markets, as defined by FTSE. The index is comprised of approximately 85% large-cap and 15% mid-cap stocks. The fund invests in a representative sample of securities included in the index that collectively has a similar profile to the index. Due to the use of representative sampling, the fund may not hold all of the securities included in the index.

During the six-month period that ended February 28, 2011, the fund’s market price return was 15.53% and its NAV return was 14.70%. (For an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 14.93% during the same period.

Most countries reported positive returns for the fund and the index. The best performing markets were Russia, Mexico and Poland, while United Arab Emirates and Egypt were the weakest performing markets. Brazil, with an average weight of approximately 19% of the fund and index, was the top contributor, while Egypt was the worst detractor to the fund and index returns.

As of 2/28/11:

Statistics


Number of Holdings		491
Weighted Average Market Cap ($ x 1,000,000)		$61,499
Price/Earnings Ratio (P/E)		17.4
Price/Book Ratio (P/B)		1.1
Portfolio Turnover Rate²		3%

Sector Weightings % of Investments


Financials		25.2%
Energy		19.1%
Materials		16.1%
Information Technology		8.7%
Telecommunication Services		8.3%
Consumer Staples		6.6%
Industrials		6.4%
Consumer Discretionary		4.6%
Utilities		3.5%
Health Care		0.9%
Other		0.6%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Petroleo Brasileiro S.A. ADR, Pfd		2.7%
Petroleo Brasileiro S.A. ADR		2.0%
Gazprom ADR		1.9%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		1.7%
Vale S.A. ADR		1.7%
America Movil S.A.B. de C.V., Series L		1.6%
China Construction Bank Corp., H Shares		1.5%
China Mobile Ltd.		1.5%
Vale S.A. ADR		1.4%
Itau Unibanco Holding S.A. ADR		1.3%
Total		17.3%

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

Source of Sector Classification: S&P and MSCI.


¹		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

10 Schwab International ETFs

Schwab Emerging Markets Equity ETF^tm

Performance Summary as of 2/28/11

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, 2011
Performance of a Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab Emerging Markets Equity ETF^tm (1/14/10)
NAV Return²		14.70	%		20.50	%		10.26	%
Market Price Return²		15.53	%		20.37	%		11.25	%
FTSE All-Emerging Index		14.93	%		21.65	%		11.23	%
ETF Category: Morningstar Diversified Emerging Markets³		14.05	%		19.16	%		10.15	%

Fund Expense Ratio⁴: 0.25%

Style Assessment⁵

Country Weightings % of Investments


Brazil			19.3%
China			16.5%
Taiwan			12.7%
India			10.2%
South Africa			9.6%
Russia			9.4%
Mexico			5.7%
Malaysia			4.1%
Indonesia			2.5%
Chile			1.9%
Other Countries			8.1%
Total			100.0%

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		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 Price 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.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		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 2/28/11, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab International ETFs 11

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, including any redemption fees and brokerage commissions you may pay when purchasing or redeeming shares of the fund. If these transactional costs were included, your costs would have been higher.


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio¹		Account Value		(Net of Expenses)		During Period²
	(Annualized)		at 9/1/10		at 2/28/11		9/1/10–2/28/11

Schwab International Equity ETF^tm
Actual Return		0.13%	$	1,000	$	1,240.30	$	0.72
Hypothetical 5% Return		0.13%	$	1,000	$	1,024.15	$	0.65


Schwab International Small-Cap Equity ETF^tm
Actual Return		0.35%	$	1,000	$	1,292.50	$	1.99
Hypothetical 5% Return		0.35%	$	1,000	$	1,023.06	$	1.76


Schwab Emerging Markets Equity ETF^tm
Actual Return		0.25%	$	1,000	$	1,147.00	$	1.33
Hypothetical 5% Return		0.25%	$	1,000	$	1,023.55	$	1.25


¹		Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights.
²		Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days of the period, and divided by 365 days of the fiscal year.

12 Schwab International ETFs

Schwab International Equity ETF™

Financial Statements

Financial Highlights


	9/1/10–			10/30/09¹–
	2/28/11*			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		23.82			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.17			0.38
Net realized and unrealized gains (losses)		5.51			(1.52	)

Total from investment operations		5.68			(1.14	)
Less distributions:
Distributions from net investment income		(0.47	)		(0.04	)

Net asset value at end of period		29.03			23.82

Total return (%)		24.03	²		(4.57	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.13	³		0.14	^3,4
Gross operating expenses		0.13	³		0.14	³
Net investment income (loss)		1.77	³		2.94	³
Portfolio turnover rate⁵		4	²		6	²
Net assets, end of period ($ x 1,000)		571,923			285,869

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended August 31, 2010 is a blended rate.

⁵ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

See financial notes 13

Schwab International Equity ETF

Portfolio Holdings as of February 28, 2011 (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				($)		($)

	98	.9%	Common Stock		504,371,990		565,782,975
	0	.3%	Preferred Stock		1,105,949		1,483,609
	0	.2%	Other Investment Company		920,973		920,973
		—%	Rights		5,493		1,868


	99	.4%	Total Investments		506,404,405		568,189,425
	0	.1%	Collateral Invested for Securities on Loan		902,696		902,696
	0	.5%	Other Assets and Liabilities, Net				2,831,314


	100	.0%	Net Assets				571,923,435


	Number		Value
Security	of Shares		($)

Common Stock 98.9% of net assets

Australia 7.1%


Banks 2.0%
Australia & New Zealand Banking Group Ltd.		99,288		2,439,663
Bank of Queensland Ltd.		9,456		94,846
Bendigo & Adelaide Bank Ltd.		18,518		176,500
Commonwealth Bank of Australia		64,616		3,494,556
National Australia Bank Ltd.		89,832		2,360,079
Westpac Banking Corp.		122,928		2,945,428

				11,511,072


Capital Goods 0.1%
CSR Ltd.		13,262		46,996
GWA International Ltd.		34,475		117,956
Leighton Holdings Ltd. (a)		4,531		142,755

				307,707


Commercial & Professional Services 0.1%
Brambles Ltd.		68,753		495,679


Consumer Services 0.2%
Crown Ltd.		26,792		227,807
Flight Centre Ltd.		3,743		84,234
TABCORP Holdings Ltd.		53,190		412,183
Tatts Group Ltd. (a)		157,797		390,464

				1,114,688


Diversified Financials 0.2%
ASX Ltd.		8,865		328,772
Challenger Ltd.		18,518		95,416
IOOF Holdings Ltd.		16,745		132,660
Macquarie Group Ltd.		11,820		455,815

				1,012,663


Energy 0.4%
Aquila Resources Ltd. *		843		7,468
New Hope Corp., Ltd.		15,760		77,835
Origin Energy Ltd.		38,218		647,974
Paladin Energy Ltd. *		27,186		136,757
Santos Ltd.		35,460		516,357
Woodside Petroleum Ltd.		21,285		921,817
WorleyParsons Ltd.		9,653		296,364

				2,604,572


Food & Staples Retailing 0.5%
Metcash Ltd.		60,873		251,667
Wesfarmers Ltd.		36,839		1,237,559
Wesfarmers Ltd., Price Protected Shares		8,471		287,246
Woolworths Ltd.		44,719		1,224,044

				3,000,516


Food, Beverage & Tobacco 0.2%
Coca-Cola Amatil Ltd.		37,430		451,662
Elders Ltd. *		82,543		43,288
Foster’s Group Ltd.		101,455		590,943
Goodman Fielder Ltd.		100,470		127,374

				1,213,267


Health Care Equipment & Services 0.1%
Cochlear Ltd.		1,576		124,118
Sigma Pharmaceuticals Ltd. *		271,269		122,924
Sonic Healthcare Ltd.		12,411		142,558

				389,600


Insurance 0.3%
AMP Ltd.		76,239		412,237
AXA Asia Pacific Holdings Ltd.		49,447		319,231
Insurance Australia Group Ltd.		101,258		376,355
QBE Insurance Group Ltd.		28,171		520,374
Suncorp Group Ltd.		26,595		228,028

				1,856,225


Materials 1.9%
Adelaide Brighton Ltd.		22,261		74,806
Alumina Ltd.		83,922		203,389
Amcor Ltd.		73,481		517,794
BHP Billiton Ltd.		121,943		5,725,688
Boral Ltd.		23,443		131,296
DuluxGroup Ltd.		13,593		38,480
Fortescue Metals Group Ltd. *		80,770		546,127
Iluka Resources Ltd. *		29,156		315,006
Incitec Pivot Ltd.		76,436		341,695
Newcrest Mining Ltd.		21,670		836,985
Nufarm Ltd. *		8,077		43,180
OneSteel Ltd.		49,250		135,408
Orica Ltd.		13,593		356,702
OZ Minerals Ltd.		108,153		178,414
Rio Tinto Ltd.		17,730		1,533,365
Sims Metal Management Ltd.		9,062		173,668

				11,152,003


Media 0.0%
Consolidated Media Holdings Ltd.		30,141		92,385

14 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
CSL Ltd.		26,398		956,966


Real Estate 0.6%
CFS Retail Property Trust		166,268		318,304
Commonwealth Property Office Fund		215,542		187,661
Dexus Property Group		242,901		211,481
Goodman Group		199,955		142,530
GPT Group		83,797		264,525
Lend Lease Group		27,818		258,343
Mirvac Group		127,459		168,729
Stockland		115,245		445,945
Westfield Group		101,258		1,005,332
Westfield Retail Trust		101,258		275,306

				3,278,156


Software & Services 0.0%
Computershare Ltd.		25,216		245,733


Telecommunication Services 0.1%
Telstra Corp., Ltd.		144,992		411,192


Transportation 0.1%
Asciano Group *		100,864		180,256
MAP Group		23,650		74,416
Qantas Airways Ltd. *		61,070		144,897
Transurban Group		87,862		477,769

				877,338


Utilities 0.1%
AGL Energy Ltd.		24,822		367,264

				40,887,026

Austria 0.3%


Banks 0.1%
Erste Group Bank AG		11,041		583,306
Raiffeisen Bank International Holding AG		5,713		343,250

				926,556


Capital Goods 0.0%
Strabag SE		2,167		63,782


Energy 0.1%
OMV AG		7,092		301,700


Insurance 0.0%
Vienna Insurance Group AG		1,773		101,910


Materials 0.1%
Voestalpine AG		7,289		337,012


Real Estate 0.0%
Immofinanz AG *		36,304		160,458


Telecommunication Services 0.0%
Telekom Austria AG		8,668		123,913

				2,015,331

Belgium 0.7%


Banks 0.1%
Dexia S.A. *		39,862		174,147
KBC GROEP N.V. *		8,471		354,514

				528,661


Diversified Financials 0.1%
Compagnie Nationale a Portefeuille/Nationale Portefeuille Maatschappij		1,379		77,368
Groupe Bruxelles Lambert S.A.		3,546		326,189

				403,557


Food & Staples Retailing 0.0%
Colruyt S.A.		3,940		198,222


Food, Beverage & Tobacco 0.3%
Anheuser-Busch InBev N.V.		30,732		1,715,498


Insurance 0.1%
Ageas		111,502		354,215


Materials 0.1%
Solvay S.A.		1,379		161,898
Umicore		3,349		168,859

				330,757


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
UCB S.A.		5,713		212,578


Telecommunication Services 0.0%
Belgacom S.A.		4,728		177,461

				3,920,949

Canada 9.1%


Automobiles & Components 0.0%
Magna International, Inc.		5,000		245,498


Banks 2.1%
Bank of Montreal		19,700		1,252,488
Bank of Nova Scotia		39,400		2,425,735
Canadian Imperial Bank of Commerce		19,700		1,661,426
Royal Bank of Canada		59,100		3,443,937
The Toronto-Dominion Bank		39,400		3,286,871

				12,070,457


Capital Goods 0.2%
Bombardier, Inc., B Shares		78,800		505,361
Finning International, Inc.		19,700		558,930

				1,064,291


Energy 2.5%
Cameco Corp.		19,700		799,078
Canadian Natural Resources Ltd.		30,500		1,531,338
Cenovus Energy, Inc.		39,400		1,526,192
Crescent Point Energy Corp.		5,000		241,034
Enbridge, Inc.		19,700		1,173,449
EnCana Corp.		39,400		1,276,745
Husky Energy, Inc.		19,700		605,827
Imperial Oil Ltd.		19,700		1,022,649
MEG Energy Corp. *		3,000		150,839
Nexen, Inc.		19,700		535,885
Pacific Rubiales Energy Corp.		6,600		220,508
Suncor Energy, Inc.		59,100		2,768,977
Talisman Energy, Inc.		39,400		974,741
TransCanada Corp.		39,400		1,578,345

				14,405,607


Food & Staples Retailing 0.2%
Shoppers Drug Mart Corp.		19,700		832,836

See financial notes 15

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Food, Beverage & Tobacco 0.1%
Saputo, Inc.		19,700		832,027


Insurance 0.7%
Great-West Lifeco, Inc.		19,700		554,483
Manulife Financial Corp.		78,800		1,484,550
Power Corp. of Canada		19,700		593,496
Power Financial Corp.		19,700		639,383
Sun Life Financial, Inc.		19,700		652,321

				3,924,233


Materials 2.0%
Agnico-Eagle Mines Ltd.		1,500		105,125
Barrick Gold Corp.		39,400		2,073,195
First Quantum Minerals Ltd.		1,300		168,745
Goldcorp, Inc.		39,400		1,876,306
IAMGOLD Corp.		2,600		54,932
Ivanhoe Mines Ltd. *		22,085		623,651
Kinross Gold Corp.		21,700		342,907
Osisko Mining Corp. *		19,700		270,874
Potash Corp. of Saskatchewan, Inc.		59,100		3,630,112
Silver Wheaton Corp. *		19,700		834,857
Teck Resources Ltd., Class B		19,700		1,086,527
Yamana Gold, Inc.		19,700		249,649

				11,316,880


Media 0.2%
Shaw Communications, Inc., B Shares		19,700		418,237
Thomson Reuters Corp.		19,700		774,618

				1,192,855


Real Estate 0.2%
Brookfield Asset Management, Inc., Class A		19,700		666,268
Brookfield Properties Corp.		39,400		688,909

				1,355,177


Software & Services 0.1%
CGI Group, Inc., A Shares *		19,700		391,554


Technology Hardware & Equipment 0.2%
Research In Motion Ltd. *		19,700		1,296,757


Telecommunication Services 0.3%
BCE, Inc.		19,700		728,125
Rogers Communications, Inc., B Shares		19,700		693,356

				1,421,481


Transportation 0.3%
Canadian National Railway Co.		19,700		1,436,439

				51,786,092

Denmark 1.0%


Banks 0.1%
Danske Bank A/S *		32,308		759,505


Capital Goods 0.1%
FLSmidth & Co. A/S		2,167		190,683
Vestas Wind Systems A/S *		9,259		319,205

				509,888


Food, Beverage & Tobacco 0.1%
Carlsberg A/S, B Shares		5,319		566,574
Danisco A/S		1,576		193,274

				759,848


Health Care Equipment & Services 0.0%
Coloplast A/S, B Shares		591		83,317
William Demant Holding A/S *		1,182		100,396

				183,713


Materials 0.1%
Novozymes A/S, B Shares		1,773		248,143


Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Novo Nordisk A/S, B Shares		21,079		2,657,279


Transportation 0.1%
AP Moller - Maersk AS, A Shares		20		193,031
AP Moller - Maersk AS, B Shares		20		198,774

				391,805

				5,510,181

Finland 0.9%


Automobiles & Components 0.1%
Nokian Renkaat Oyj		5,516		224,295


Capital Goods 0.2%
Kone Oyj, B Shares		9,456		516,548
Metso Oyj		2,758		142,698
Wartsila Oyj		4,728		363,739

				1,022,985


Energy 0.0%
Neste Oil Oyj		8,274		146,850


Food & Staples Retailing 0.0%
Kesko Oyj, B Shares		3,349		144,366


Insurance 0.1%
Sampo Oyj, A Shares		25,019		775,097


Materials 0.2%
Outokumpu Oyj		8,471		152,219
Rautaruukki Oyj		6,304		146,453
Stora Enso Oyj, R Shares		30,338		342,137
UPM-Kymmene Oyj		23,443		465,941

				1,106,750


Media 0.0%
Sanoma Oyj		2,955		65,017


Technology Hardware & Equipment 0.2%
Nokia Oyj		134,945		1,170,504


Utilities 0.1%
Fortum Oyj		24,231		751,353

				5,407,217

France 8.7%


Automobiles & Components 0.2%
Compagnie Generale des Etablissements Michelin, B Shares		6,219		506,791
PSA Peugeot S.A. *		8,274		331,585
Renault S.A. *		10,047		616,343

				1,454,719


Banks 1.1%
BNP Paribas		41,567		3,248,391
Credit Agricole S.A.		34,475		605,687
Natixis *		38,612		230,336

16 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Societe Generale		30,338		2,134,950

				6,219,364


Capital Goods 1.1%
Alstom S.A.		11,426		682,002
Bouygues S.A.		10,835		501,412
Compagnie de Saint-Gobain		21,276		1,273,166
Eiffage S.A.		2,561		152,615
Legrand S.A.		2,561		107,515
Safran S.A.		8,077		287,600
Schneider Electric S.A.		9,850		1,631,218
Thales S.A.		2,955		112,036
Vallourec S.A.		4,728		490,231
Vinci S.A.		19,897		1,198,753
Wendel		1,379		142,470

				6,579,018


Commercial & Professional Services 0.1%
Bureau Veritas S.A.		2,955		228,357
Edenred *		11,820		311,741
Societe BIC S.A.		1,773		151,585

				691,683


Consumer Durables & Apparel 0.6%
Christian Dior S.A.		3,743		539,989
Hermes International		1,773		386,309
LVMH Moet Hennessy Louis Vuitton S.A.		16,154		2,549,135

				3,475,433


Consumer Services 0.2%
Accor S.A.		11,820		556,301
Sodexo		7,486		515,587

				1,071,888


Diversified Financials 0.0%
Eurazeo		1,617		120,291


Energy 1.0%
Compagnie Generale De Geophysique-Veritas *		6,304		234,047
Technip S.A.		4,334		428,247
Total S.A.		82,740		5,075,197

				5,737,491


Food & Staples Retailing 0.3%
Carrefour S.A.		31,323		1,539,310
Casino Guichard Perrachon S.A.		2,561		251,074

				1,790,384


Food, Beverage & Tobacco 0.4%
Danone S.A.		24,231		1,520,445
Pernod Ricard S.A.		9,277		856,063

				2,376,508


Health Care Equipment & Services 0.1%
Essilor International S.A.		8,077		577,321


Household & Personal Products 0.2%
L’Oreal S.A.		10,638		1,237,756


Insurance 0.4%
AXA S.A.		89,455		1,880,511
CNP Assurances		7,092		157,413
SCOR SE		6,895		202,801

				2,240,725


Materials 0.4%
Air Liquide S.A.		10,473		1,356,991
Eramet		394		142,442
Lafarge S.A.		8,865		538,078

				2,037,511


Media 0.4%
Eutelsat Communications		2,561		102,280
JC Decaux S.A. *		2,167		70,022
Lagardere S.C.A.		5,122		230,700
PagesJaunes Groupe		4,137		40,381
Publicis Groupe		5,319		303,672
Societe Television Francaise 1		6,304		122,596
Vivendi		50,432		1,439,107

				2,308,758


Pharmaceuticals, Biotechnology & Life Sciences 0.6%
Sanofi-Aventis		46,098		3,183,528


Real Estate 0.2%
Gecina S.A.		985		127,708
Klepierre		3,546		138,434
Unibail-Rodamco SE *		3,743		753,245

				1,019,387


Retailing 0.1%
PPR		3,940		598,612


Software & Services 0.1%
Atos Origin S.A. *		2,561		148,370
Cap Gemini S.A.		5,713		334,097
Dassault Systemes S.A.		1,970		150,986

				633,453


Technology Hardware & Equipment 0.1%
Alcatel-Lucent *		111,896		554,374


Telecommunication Services 0.3%
France Telecom S.A.		74,269		1,644,363


Transportation 0.0%
Air France-KLM *		3,940		64,487


Utilities 0.8%
Electricite de France		13,396		597,910
GDF Suez		68,753		2,789,499
Suez Environnement S.A.		16,154		350,297
Veolia Environnement		20,685		680,826

				4,418,532

				50,035,586

Germany 6.7%


Automobiles & Components 0.7%
Bayerische Motoren Werke AG		13,987		1,135,562
Continental AG *		1,576		133,327
Daimler AG - Reg’d *		39,203		2,764,214
Volkswagen AG		985		149,653

				4,182,756


Banks 0.1%
Commerzbank AG *		40,582		350,100


Capital Goods 1.1%
GEA Group AG		8,471		262,025
Hochtief AG		2,561		252,524
MAN SE		6,304		801,139

See financial notes 17

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Siemens AG - Reg’d		35,066		4,726,593

				6,042,281


Consumer Durables & Apparel 0.1%
Adidas AG		9,456		607,319
Puma AG Rudolf Dassler Sport		394		117,274

				724,593


Consumer Services 0.0%
TUI AG *		14,381		188,639


Diversified Financials 0.6%
Deutsche Bank AG - Reg’d		41,370		2,661,593
Deutsche Boerse AG		8,865		681,275

				3,342,868


Food & Staples Retailing 0.1%
Metro AG		8,668		634,529


Health Care Equipment & Services 0.1%
Fresenius Medical Care AG & Co. KGaA		7,092		469,938
Fresenius SE		3,349		305,801

				775,739


Household & Personal Products 0.1%
Beiersdorf AG		3,152		189,379
Henkel AG & Co. KGaA		3,349		171,149

				360,528


Insurance 0.7%
Allianz SE - Reg’d		18,912		2,727,059
Hannover Rueckversicherung AG - Reg’d		2,561		149,237
Muenchener Rueckversicherungs - Gesellschaft AG - Reg’d		8,077		1,349,313

				4,225,609


Materials 1.0%
BASF SE		30,535		2,541,463
HeidelbergCement AG		8,274		579,745
K&S AG		7,888		609,570
Lanxess AG		3,152		234,656
Linde AG		4,925		752,347
Salzgitter AG		1,970		163,693
ThyssenKrupp AG		15,760		655,861
Wacker Chemie AG		591		109,138

				5,646,473


Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Bayer AG - Reg’d		34,869		2,705,689
Merck KGaA		2,561		231,725

				2,937,414


Semiconductors & Semiconductor Equipment 0.1%
Infineon Technologies AG		40,385		442,222


Software & Services 0.4%
SAP AG		36,248		2,188,874


Telecommunication Services 0.3%
Deutsche Telekom AG - Reg’d		126,474		1,702,314


Transportation 0.1%
Deutsche Lufthansa AG - Reg’d *		7,289		149,151
Deutsche Post AG - Reg’d		34,672		636,445

				785,596


Utilities 0.7%
E.ON AG		82,740		2,717,019
RWE AG		16,745		1,131,200

				3,848,219

				38,378,754

Greece 0.2%


Banks 0.1%
Alpha Bank A.E. ADR *		148,932		248,716
EFG Eurobank Ergasias SA *		6,385		40,920
National Bank of Greece S.A. ADR *		159,964		300,732

				590,368


Food, Beverage & Tobacco 0.0%
Coca Cola Hellenic Bottling Co. S.A. ADR		6,304		171,595


Telecommunication Services 0.1%
Hellenic Telecommunications Organization S.A. ADR		36,839		183,090

				945,053

Hong Kong 3.5%


Automobiles & Components 0.0%
Geely Automobile Holdings Ltd.		105,000		45,024


Banks 0.4%
BOC Hong Kong Holdings Ltd.		197,000		610,792
Dah Sing Banking Group Ltd.		171,360		281,158
Hang Seng Bank Ltd.		59,100		941,606
The Bank of East Asia Ltd.		118,200		512,154

				2,345,710


Capital Goods 0.6%
China High Speed Transmission Equipment Group Co., Ltd.		197,000		274,161
Hutchison Whampoa Ltd.		197,000		2,317,974
Jardine Matheson Holdings Ltd.		4,000		184,800
Johnson Electric Holdings Ltd.		211,000		132,736
Noble Group Ltd.		247,181		398,726

				3,308,397


Consumer Durables & Apparel 0.1%
C C Land Holdings Ltd.		197,000		65,758
Hutchison Harbour Ring Ltd.		394,000		51,089
Li Ning Co., Ltd.		98,500		185,641
Techtronic Industries Co., Ltd.		98,500		121,526

				424,014


Consumer Services 0.1%
China Travel International Investment Hong Kong Ltd. *		394,000		80,427
Galaxy Entertainment Group Ltd. *		197,000		252,663
Sands China Ltd. *		78,800		187,360
The Hongkong & Shanghai Hotels Ltd.		98,500		163,890

				684,340


Diversified Financials 0.2%
Hong Kong Exchanges & Clearing Ltd.		59,100		1,279,249


Energy 0.0%
Mongolia Energy Co., Ltd. *		197,000		38,190

18 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Food, Beverage & Tobacco 0.2%
China Huiyuan Juice Group Ltd.		98,500		60,320
China Mengniu Dairy Co., Ltd.		74,000		196,183
China Yurun Food Group Ltd.		197,000		623,438
Want Want China Holdings Ltd.		394,000		294,900

				1,174,841


Household & Personal Products 0.1%
Hengan International Group Co., Ltd.		98,500		732,192


Insurance 0.2%
AIA Group Ltd. *		315,200		920,614


Materials 0.0%
Huabao International Holdings Ltd.		197,000		248,616


Real Estate 0.9%
Cheung Kong (Holdings) Ltd.		40,000		621,891
Chinese Estates Holdings Ltd.		98,500		163,384
Hongkong Land Holdings Ltd.		197,000		1,349,450
Hopewell Holdings Ltd.		98,500		306,661
Kowloon Development Co., Ltd.		25,000		33,572
New World Development Co., Ltd.		197,000		355,094
Sino Land Co., Ltd.		50,000		90,896
Sun Hung Kai Properties Ltd.		115,000		1,854,374
Swire Pacific Ltd.		20,000		279,106
The Link REIT		98,500		304,131
The Wharf Holdings Ltd.		10,000		65,668

				5,424,227


Retailing 0.3%
Belle International Holdings Ltd.		197,000		342,448
Esprit Holdings Ltd.		59,248		289,807
GOME Electrical Appliances Holdings Ltd. *	��	788,000		269,103
Li & Fung Ltd.		30,000		181,791
Lifestyle International Holdings Ltd.		98,500		244,570
Parkson Retail Group Ltd.		197,000		278,713

				1,606,432


Semiconductors & Semiconductor Equipment 0.1%
ASM Pacific Technology Ltd.		19,700		261,768
GCL Poly Energy Holdings Ltd. *		197,000		99,649

				361,417


Software & Services 0.1%
Alibaba.com Ltd.		14,000		26,098
Tencent Holdings Ltd.		19,700		523,030

				549,128


Technology Hardware & Equipment 0.0%
Lenovo Group Ltd.		394,000		237,741


Transportation 0.2%
Hopewell Highway Infrastructure Ltd.		1,182,000		851,315

				20,231,447

Ireland 0.4%


Banks 0.0%
The Governor & Company of the Bank of Ireland *		59,100		28,815


Commercial & Professional Services 0.1%
Experian plc		38,809		492,358


Food, Beverage & Tobacco 0.0%
Kerry Group plc, A Shares		4,531		164,591


Materials 0.1%
CRH plc		28,762		666,802


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Elan Corp. plc *		29,944		195,916
Shire plc		20,685		585,745

				781,661


Transportation 0.0%
Ryanair Holdings plc		11,021		51,299

				2,185,526

Israel 0.5%


Banks 0.1%
Bank Hapoalim B.M. *		44,916		204,586
Bank Leumi Le-Israel		26,595		122,972
Israel Discount Bank, A Shares *		36,057		73,069

				400,627


Capital Goods 0.0%
Clal Industries Ltd.		2,955		21,903
Delek Group Ltd.		197		47,046
Ormat Industries Ltd.		10,441		74,795

				143,744


Energy 0.0%
Delek Drilling - LP *		9,456		33,621


Materials 0.1%
Israel Chemicals Ltd.		18,518		307,739
The Israel Corp., Ltd. *		197		233,572

				541,311


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Teva Pharmaceutical Industries Ltd.		35,460		1,791,354


Software & Services 0.0%
NICE Systems Ltd. *		1,970		67,706


Telecommunication Services 0.0%
Bezeq Israeli Telecommunication Corp., Ltd.		64,813		176,234

				3,154,597

Italy 2.6%


Automobiles & Components 0.1%
Fiat S.p.A.		21,079		195,794
Pirelli & C S.p.A.		18,963		152,959

				348,753


Banks 0.7%
Banca Carige S.p.A.		42,158		101,784
Banca Monte dei Paschi di Siena S.p.A. *		122,731		163,753
Banca Popolare di Milano Scarl		26,398		106,903
Banco Popolare Societa Cooperatira		67,602		236,231
Intesa Sanpaolo		366,814		1,238,237
UniCredit S.p.A.		784,875		2,019,621
Unione di Banche Italiane S.c.p.A.		26,201		264,902

				4,131,431


Capital Goods 0.1%
Fiat Industrial S.p.A. *		21,079		294,637
Finmeccanica S.p.A.		17,533		219,644

				514,281

See financial notes 19

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Consumer Durables & Apparel 0.1%
Bulgari S.p.A.		8,865		94,036
Luxottica Group S.p.A.		7,683		238,871

				332,907


Consumer Services 0.0%
Autogrill S.p.A. *		9,062		128,294


Diversified Financials 0.1%
EXOR S.p.A.		3,743		114,305
Mediobanca S.p.A.		19,109		202,437

				316,742


Energy 0.6%
Eni S.p.A.		112,093		2,735,720
Saipem S.p.A.		13,790		697,111

				3,432,831


Food, Beverage & Tobacco 0.0%
Parmalat S.p.A.		46,295		141,953


Insurance 0.2%
Assicurazioni Generali S.p.A.		65,207		1,476,148


Media 0.0%
Mediaset S.p.A.		35,066		225,699


Telecommunication Services 0.2%
Telecom Italia S.p.A.		494,470		773,113
Telecom Italia S.p.A. - RSP		177,497		235,107

				1,008,220


Transportation 0.1%
Atlantia S.p.A.		14,430		330,850


Utilities 0.4%
A2A S.p.A.		76,633		122,781
Enel S.p.A.		301,016		1,795,266
Snam Rete Gas S.p.A.		67,177		367,799
Terna-Rete Elettrica Nazionale S.p.A.		61,661		284,626

				2,570,472

				14,958,581

Japan 17.8%


Automobiles & Components 2.1%
Bridgestone Corp.		19,700		402,512
Denso Corp.		19,700		734,572
Honda Motor Co., Ltd.		59,100		2,557,177
Isuzu Motors Ltd.		6,000		26,877
Mazda Motor Corp.		10,000		25,632
Mitsubishi Motors Corp. *		394,000		557,842
NHK Spring Co., Ltd.		5,000		58,342
Nissan Motor Co., Ltd.		98,500		1,003,875
Nok Corp.		19,700		389,528
Sumitomo Rubber Industries Ltd.		19,700		212,076
Suzuki Motor Corp.		19,700		464,307
Takata Corp.		2,000		63,347
Toyota Auto Body Co., Ltd.		19,700		369,089
Toyota Motor Corp.		98,500		4,592,579
Yamaha Motor Co., Ltd. *		19,700		347,690

				11,805,445


Banks 1.4%
Aozora Bank Ltd. (a)		197,000		442,427
Hokuhoku Financial Group, Inc.		197,000		452,044
Mitsubishi UFJ Financial Group, Inc.		492,500		2,723,087
Mizuho Financial Group, Inc.		433,400		888,700
Mizuho Trust & Banking Co., Ltd. *		197,000		214,000
Resona Holdings, Inc.		59,100		321,721
Sapporo Hokuyo Holdings, Inc.		78,800		409,725
Senshu Ikeda Holdings, Inc.		118,200		186,108
Shinsei Bank Ltd. *(a)		197,000		250,067
Sumitomo Mitsui Financial Group, Inc.		59,100		2,225,357

				8,113,236


Capital Goods 2.6%
COMSYS Holdings Corp.		19,700		199,573
Daikin Industries Ltd.		19,700		664,121
Fanuc Ltd.		19,700		3,048,895
IHI Corp.		197,000		514,561
ITOCHU Corp.		39,400		406,840
JS Group Corp.		19,700		478,013
JTEKT Corp.		19,700		288,779
Kawasaki Heavy Industries Ltd.		197,000		791,078
Komatsu Ltd.		59,100		1,799,762
Mitsubishi Corp.		59,100		1,630,967
Mitsubishi Electric Corp.		2,000		23,606
Mitsubishi Heavy Industries Ltd.		197,000		834,359
Mitsui & Co., Ltd.		59,100		1,071,922
Sojitz Corp.		98,500		221,213
Sumitomo Corp.		59,100		871,388
Sumitomo Electric Industries Ltd.		39,400		574,673
THK Co., Ltd.		19,700		516,966
Toyota Tsusho Corp.		19,700		371,734
Ushio, Inc.		19,700		403,474

				14,711,924


Commercial & Professional Services 0.2%
Kokuyo Co., Ltd.		19,700		161,582
Secom Co., Ltd.		19,700		989,448

				1,151,030


Consumer Durables & Apparel 0.9%
Haseko Corp. *		98,500		91,371
Makita Corp.		19,700		828,347
NAMCO BANDAI Holdings, Inc.		19,700		232,033
Nikon Corp.		19,700		459,979
Panasonic Corp.		118,200		1,588,407
Sega Sammy Holdings, Inc.		19,700		446,514
Sony Corp.		39,400		1,439,329
Sumitomo Forestry Co., Ltd.		19,700		178,654

				5,264,634


Diversified Financials 0.6%
Credit Saison Co., Ltd.		19,700		383,517
Daiwa Securities Group, Inc.		197,000		1,057,976
Matsui Securities Co., Ltd.		19,700		139,941
Mitsubishi UFJ Lease & Finance Co., Ltd.		3,940		174,085
Nomura Holdings, Inc.		157,600		996,421
ORIX Corp.		5,910		660,033
Promise Co., Ltd. (a)		9,850		96,180
SBI Holdings, Inc.		197		31,042

				3,539,195


Energy 0.1%
JX Holdings, Inc.		82,200		574,888
Showa Shell Sekiyu K.K.		19,700		177,692

				752,580

20 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Food & Staples Retailing 0.3%
Aeon Co., Ltd.		39,400		495,325
Seven & I Holdings Co., Ltd.		39,400		1,095,006
Uny Co., Ltd.		19,700		195,004

				1,785,335


Food, Beverage & Tobacco 0.4%
Asahi Breweries Ltd.		19,700		378,948
Japan Tobacco, Inc.		197		810,314
Kagome Co., Ltd.		19,700		367,406
Kewpie Corp.		19,700		249,827
Yakult Honsha Co., Ltd.		19,700		554,716

				2,361,211


Health Care Equipment & Services 0.1%
Olympus Corp.		19,700		574,193


Household & Personal Products 0.1%
Kao Corp.		19,700		528,988


Insurance 0.8%
MS&AD Insurance Group Holdings, Inc.		39,400		1,031,527
Sony Financial Holdings, Inc.		197		835,561
T&D Holdings, Inc.		19,700		567,460
The Dai-ichi Life Insurance Co., Ltd.		394		707,882
Tokio Marine Holdings, Inc.		39,400		1,288,327

				4,430,757


Materials 1.3%
Hitachi Chemical Co., Ltd.		19,700		455,411
JFE Holdings, Inc.		19,700		619,156
JSR Corp.		19,700		420,545
Kobe Steel Ltd.		197,000		536,202
Mitsubishi Chemical Holdings Corp.		98,500		717,741
Nippon Steel Corp.		197,000		711,729
Nitto Denko Corp.		19,700		1,184,212
Shin-Etsu Chemical Co., Ltd.		19,700		1,128,909
Showa Denko K.K.		197,000		430,404
Sumitomo Metal Industries Ltd.		197,000		497,730
Tokyo Steel Manufacturing Co., Ltd.		19,700		218,809
Toyo Seikan Kaisha Ltd.		19,700		360,193

				7,281,041


Media 0.2%
Dentsu, Inc.		19,700		624,206
Hakuhodo DY Holdings, Inc.		3,940		249,105
Toho Co., Ltd.		19,700		319,076

				1,192,387


Pharmaceuticals, Biotechnology & Life Sciences 0.7%
Astellas Pharma, Inc.		19,700		770,640
Chugai Pharmaceutical Co., Ltd.		19,700		377,505
Daiichi Sankyo Co., Ltd.		19,700		421,267
Dainippon Sumitomo Pharma Co., Ltd.		19,700		190,676
Eisai Co., Ltd. (a)		19,700		734,572
Shionogi & Co., Ltd. (a)		19,700		372,456
Takeda Pharmaceutical Co., Ltd.		19,700		977,426

				3,844,542


Real Estate 0.1%
Mitsubishi Estate Co., Ltd.		6,000		122,153
Mitsui Fudosan Co., Ltd.		3,000		63,493
NTT Urban Development Corp.		197		204,142
Sumitomo Real Estate Sales Co., Ltd.		1,970		102,431
Sumitomo Realty & Development Co., Ltd.		2,000		53,436

				545,655


Retailing 0.2%
DeNA Co., Ltd.		1,900		73,166
Isetan Mitsukoshi Holdings Ltd.		39,400		474,647
Marui Group Co., Ltd.		19,700		176,009
USS Co., Ltd.		1,970		158,937
Yamada Denki Co., Ltd.		7,880		599,199

				1,481,958


Semiconductors & Semiconductor Equipment 0.3%
Advantest Corp.		19,700		407,321
Tokyo Electron Ltd.		19,700		1,283,998

				1,691,319


Software & Services 0.4%
KONAMI Corp.		19,700		413,813
Nintendo Co., Ltd.		1,000		292,567
Nomura Research Institute Ltd.		19,700		459,979
NTT Data Corp.		197		698,745
Yahoo! Japan Corp.		591		221,815

				2,086,919


Technology Hardware & Equipment 2.0%
Alps Electric Co., Ltd.		19,700		262,811
Brother Industries Ltd.		19,700		309,699
Canon, Inc.		59,100		2,842,109
FUJIFILM Holdings Corp.		19,700		687,685
Hitachi Ltd.		197,000		1,190,223
Hoya Corp.		19,700		469,116
Kyocera Corp.		19,700		2,039,009
Murata Manufacturing Co., Ltd.		19,700		1,461,931
OMRON Corp.		19,700		544,617
Toshiba Corp.		197,000		1,286,403
Yokogawa Electric Corp.		19,700		151,723

				11,245,326


Telecommunication Services 0.8%
KDDI Corp.		197		1,274,380
Nippon Telegraph & Telephone Corp.		19,700		959,392
NTT DoCoMo, Inc.		788		1,476,358
SOFTBANK Corp.		19,700		806,707

				4,516,837


Transportation 1.0%
All Nippon Airways Co., Ltd. *		197,000		709,325
Central Japan Railway Co.		197		1,757,683
East Japan Railway Co.		19,700		1,368,156
Tokyu Corp.		197,000		911,302
West Japan Railway Co.		197		815,123

				5,561,589


Utilities 1.2%
Electric Power Development Co., Ltd.		19,700		620,599
Hokkaido Electric Power Co., Inc.		19,700		421,748
Hokuriku Electric Power Co.		19,700		495,325
Kyushu Electric Power Co., Inc.		19,700		456,373
Osaka Gas Co., Ltd.		197,000		747,797
Shikoku Electric Power Co., Inc.		19,700		594,631
The Chugoku Electric Power Co., Inc.		19,700		421,267
The Kansai Electric Power Co., Inc.		39,400		1,032,008
The Tokyo Electric Power Co., Inc.		39,400		1,016,619
Tohoku Electric Power Co., Inc.		19,700		457,575

See financial notes 21

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Tokyo Gas Co., Ltd.		197,000		877,639

				7,141,581

				101,607,682

Luxembourg 0.4%


Energy 0.1%
Tenaris S.A.		16,548		373,926


Materials 0.2%
APERAM *		2,305		95,399
ArcelorMittal		46,295		1,702,473

				1,797,872


Media 0.1%
SES		13,199		340,089

				2,511,887

Netherlands 3.6%


Capital Goods 0.2%
Koninklijke (Royal) Philips Electronics N.V.		42,946		1,403,441


Commercial & Professional Services 0.1%
Randstad Holding N.V. *		7,683		414,548


Diversified Financials 0.4%
ING Groep N.V. CVA *		165,959		2,082,946


Energy 1.6%
Fugro N.V. CVA		3,349		281,979
Royal Dutch Shell plc, A Shares		137,506		4,946,098
Royal Dutch Shell plc, B Shares		108,941		3,895,579
SBM Offshore N.V.		6,501		163,466

				9,287,122


Food & Staples Retailing 0.1%
Koninklijke Ahold N.V.		57,130		767,617


Food, Beverage & Tobacco 0.4%
Heineken Holding N.V.		2,955		135,830
Heineken N.V.		7,486		386,290
Unilever N.V. CVA		60,479		1,825,627

				2,347,747


Insurance 0.1%
AEGON N.V. *		79,391		610,668


Materials 0.2%
Akzo Nobel N.V.		9,062		616,685
Koninklijke DSM N.V.		7,289		428,425

				1,045,110


Media 0.1%
Reed Elsevier N.V.		27,383		361,648
Wolters Kluwer N.V.		11,820		279,498

				641,146


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
QIAGEN N.V. *		9,259		191,956


Real Estate 0.0%
Corio N.V.		3,152		209,209


Semiconductors & Semiconductor Equipment 0.1%
ASML Holding N.V.		8,865		385,146
STMicroelectronics N.V.		13,002		167,120

				552,266


Telecommunication Services 0.2%
Koninklijke (Royal) KPN N.V.		62,646		1,015,823


Transportation 0.1%
TNT N.V.		12,017		315,941

				20,885,540

New Zealand 0.2%


Consumer Services 0.0%
Sky City Entertainment Group Ltd.		69,738		170,304


Health Care Equipment & Services 0.0%
Fisher & Paykel Healthcare Corp., Ltd.		33,884		77,145


Materials 0.1%
Fletcher Building Ltd.		65,404		430,998


Real Estate 0.0%
Kiwi Income Property Trust		100,470		75,493


Retailing 0.0%
The Warehouse Group Ltd.		19,109		49,393


Telecommunication Services 0.0%
Telecom Corp. of New Zealand Ltd.		78,406		122,542


Transportation 0.1%
Auckland International Airport Ltd.		114,260		190,598

				1,116,473

Norway 0.9%


Banks 0.1%
DnB NOR A.S.A.		41,418		640,471


Capital Goods 0.1%
Orkla A.S.A.		39,400		358,805


Energy 0.4%
Aker Solutions A.S.A.		4,137		87,538
Seadrill Ltd.		13,790		525,474
Statoil A.S.A.		59,100		1,557,637

				2,170,649


Insurance 0.0%
Storebrand A.S.A. *		25,019		216,539


Materials 0.2%
Norsk Hydro A.S.A.		51,309		422,364
Yara International A.S.A.		9,850		522,203

				944,567


Telecommunication Services 0.1%
Telenor A.S.A.		39,203		649,971

				4,981,002

Papua N.Guinea 0.1%


Energy 0.1%
Oil Search Ltd.		61,267		436,093

Portugal 0.3%


Banks 0.0%
Banco Comercial Portugues S.A. - Reg’d		250,584		223,585

22 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Energy 0.1%
Galp Energia, SGPS, S.A., B Shares		13,396		278,926


Food & Staples Retailing 0.1%
Jeronimo Martins, SGPS, S.A.		19,306		309,852


Telecommunication Services 0.0%
Portugal Telecom, SGPS, S.A. - Reg’d		22,458		262,793


Utilities 0.1%
EDP - Energias de Portugal S.A.		139,279		528,639

				1,603,795

Republic of Korea 3.9%


Automobiles & Components 0.4%
Halla Climate Control Corp.		250		3,810
Hankook Tire Co., Ltd.		1,200		31,525
Hyundai Mobis		2,200		511,673
Hyundai Motor Co.		4,725		745,182
Kia Motors Corp.		14,400		732,344

				2,024,534


Banks 0.6%
Busan Bank		4,800		57,626
Daegu Bank Ltd.		1,200		16,214
Hana Financial Group, Inc.		2,600		103,664
Industrial Bank of Korea		3,300		49,413
KB Financial Group, Inc. ADR		32,505		1,584,619
Shinhan Financial Group Co., Ltd. ADR		19,503		1,634,546
Woori Finance Holdings Co., Ltd.		7,200		87,078

				3,533,160


Capital Goods 0.5%
Daelim Industrial Co., Ltd.		1,100		95,610
Daewoo International Corp.		1,690		50,536
Daewoo Shipbuilding & Marine Engineering Co., Ltd.		2,680		81,921
Doosan Corp.		1,051		116,400
Doosan Heavy Industries and Construction Co., Ltd.		800		48,837
Doosan Infracore Co., Ltd. *		1,890		42,953
GS Engineering & Construction Corp.		660		58,068
Hanjin Heavy Industries & Construction Co., Ltd.		580		15,674
Hyundai Engineering & Construction Co., Ltd.		1,320		87,131
Hyundai Heavy Industries Co., Ltd.		2,099		808,989
Hyundai Mipo Dockyard Co., Ltd.		510		78,173
LG Corp.		1,100		75,630
LS Corp.		453		36,925
Samsung C&T Corp.		4,500		268,329
Samsung Engineering Co., Ltd.		1,100		174,456
Samsung Heavy Industries Co., Ltd.		7,500		241,882
Samsung Techwin Co., Ltd.		720		50,524
SK Holdings Co., Ltd.		1,200		140,876
STX Corp. *		4,860		124,660
STX Offshore & Shipbuilding Co., Ltd.		2,060		50,010

				2,647,584


Consumer Durables & Apparel 0.0%
LG Electronics, Inc.		2,100		206,530


Consumer Services 0.0%
Kangwon Land, Inc.		1,430		31,738


Diversified Financials 0.1%
Daewoo Securities Co., Ltd.		7,690		157,050
Hyundai Securities Co., Ltd.		8,740		100,669
Korea Investment Holdings Co., Ltd.		2,650		98,144
Samsung Securities Co., Ltd.		1,640		109,997
Woori Investment & Securities Co., Ltd.		6,750		122,004

				587,864


Energy 0.1%
GS Holdings		1,400		86,209
S-Oil Corp.		1,550		147,632
SK Innovation Co., Ltd.		2,680		415,541

				649,382


Food & Staples Retailing 0.0%
Shinsegae Co., Ltd.		200		44,212


Household & Personal Products 0.0%
LG Household & Health Care Ltd.		120		38,063


Insurance 0.1%
Dongbu Insurance Co., Ltd.		3,650		148,115
Samsung Fire & Marine Insurance Co., Ltd.		700		138,617

				286,732


Materials 0.6%
Cheil Industries, Inc.		1,000		106,322
Dongkuk Steel Mill Co., Ltd.		650		20,560
Hanwha Chemical Corp.		5,040		150,041
Hanwha Corp.		4,090		161,259
Honam Petrochemical Corp.		1,026		282,715
Hyosung Corp.		536		37,042
Hyundai Steel Co.		920		105,560
Korea Zinc Co., Ltd.		159		47,053
LG Chem Ltd.		1,400		461,436
OCI Co., Ltd.		600		197,758
POSCO ADR		18,912		1,949,449

				3,519,195


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Yuhan Corp.		315		42,422


Retailing 0.0%
Hyundai Department Store Co., Ltd.		516		55,548
Lotte Midopa Co., Ltd.		5,500		78,700

				134,248


Semiconductors & Semiconductor Equipment 0.9%
Hynix Semiconductor, Inc. *		14,000		351,659
Samsung Electronics Co., Ltd. GDR - Reg’d *		11,623		4,760,781

				5,112,440


Software & Services 0.1%
Daum Communications Corp. *		376		33,181
NCsoft Corp.		300		60,072
NHN Corp. *		1,000		167,899

				261,152


Technology Hardware & Equipment 0.2%
LG Display Co., Ltd. ADR		58,509		934,974
Samsung Electro-Mechanics Co., Ltd.		1,200		137,155
Samsung SDI Co., Ltd.		1,000		147,521

				1,219,650

See financial notes 23

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Telecommunication Services 0.2%
KT Corp. ADR		21,473		424,951
SK Telecom Co., Ltd. ADR		32,111		564,832

				989,783


Transportation 0.0%
Hanjin Shipping Holdings Co., Ltd. *		740		10,097
Hyundai Merchant Marine Co., Ltd.		1,417		35,467
Korean Air Lines Co., Ltd. *		799		43,538

				89,102


Utilities 0.1%
Korea Electric Power Corp. ADR *		55,948		682,566

				22,100,357

Singapore 1.3%


Banks 0.3%
Oversea-Chinese Banking Corp., Ltd.		197,000		1,427,682


Capital Goods 0.1%
Singapore Technologies Engineering Ltd.		197,000		494,496
Yangzijiang Shipbuilding Holdings Ltd. (a)		197,000		277,476

				771,972


Food & Staples Retailing 0.1%
Olam International Ltd.		197,000		430,940


Food, Beverage & Tobacco 0.2%
Golden Agri-Resources Ltd.		591,000		302,278
People’s Food Holdings Ltd.		197,000		120,136
Wilmar International Ltd. (a)		197,000		789,023

				1,211,437


Real Estate 0.3%
Allgreen Properties Ltd.		246,000		201,314
CapitaCommercial Trust		197,000		213,920
Capitaland Ltd.		197,000		505,347
CapitaMall Trust		197,000		280,576
Keppel Land Ltd.		33,000		109,580
Wheelock Properties Singapore Ltd.		1,000		1,440
Wing Tai Holdings Ltd.		234,000		272,510
Yanlord Land Group Ltd.		197,000		210,820

				1,795,507


Telecommunication Services 0.2%
Singapore Telecommunications Ltd.		394,000		920,785


Transportation 0.1%
ComfortDelGro Corp., Ltd.		197,000		240,272
Neptune Orient Lines Ltd. *(a)		197,000		317,780
Singapore Post Ltd.		197,000		176,716

				734,768

				7,293,091

Spain 3.3%


Banks 1.2%
Banco Bilbao Vizcaya Argentaria S.A.		160,241		1,979,973
Banco de Sabadell S.A.		51,485		223,715
Banco Popular Espanol S.A.		47,321		286,341
Banco Santander S.A.		342,780		4,230,256

				6,720,285


Capital Goods 0.1%
ACS, Actividades de Construccion y Servicios S.A.		10,638		488,476
Gamesa Corporacion Tecnologica S.A. *		8,274		73,014
Zardoya Otis S.A.		5,956		92,958

				654,448


Diversified Financials 0.1%
Corporacion Financiera Alba S.A.		1,576		95,234
Criteria Caixacorp S.A.		52,796		382,475

				477,709


Energy 0.3%
Repsol YPF S.A.		51,614		1,734,468


Insurance 0.0%
Mapfre S.A.		42,179		156,830


Materials 0.1%
Acerinox S.A.		9,456		179,584


Media 0.0%
Gestevision Telecinco S.A.		6,135		77,060


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Grifols S.A.		9,456		154,115


Retailing 0.1%
Industria de Diseno Textil S.A.		10,047		727,983


Software & Services 0.0%
Indra Sistemas S.A.		6,304		122,770


Telecommunication Services 0.8%
Telefonica S.A.		165,086		4,195,509


Transportation 0.1%
Abertis Infraestructuras S.A.		10,883		218,860
Ferrovial S.A.		19,306		232,443

				451,303


Utilities 0.5%
Enagas		8,865		189,971
Endesa S.A.		4,925		149,313
Gas Natural SDG S.A.		21,079		360,435
Iberdrola Renovables S.A.		47,083		177,015
Iberdrola S.A.		222,807		1,945,847
Red Electrica Corporacion S.A.		2,955		159,176

				2,981,757

				18,633,821

Sweden 2.9%


Banks 0.7%
Nordea Bank AB		155,236		1,765,773
Skandinaviska Enskilda Banken AB, A Shares		88,059		801,321
Svenska Handelsbanken AB, A Shares		30,338		1,024,719
Swedbank AB, A Shares *		26,595		468,473

				4,060,286


Capital Goods 1.0%
AB SKF, B Shares		21,079		587,766
Alfa Laval AB		21,670		442,657
Assa Abloy AB, B Shares		19,897		557,322
Atlas Copco AB, A Shares		28,565		717,984
Atlas Copco AB, B Shares		17,139		389,634

24 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Sandvik AB		36,642		703,340
Scania AB, B Shares		16,942		377,928
Skanska AB, B Shares		17,139		352,268
Volvo AB, A Shares *		23,443		404,432
Volvo AB, B Shares *		54,766		948,269

				5,481,600


Commercial & Professional Services 0.1%
Securitas AB, B Shares		35,263		412,250


Consumer Durables & Apparel 0.0%
Electrolux AB, Series B		7,880		197,691


Diversified Financials 0.2%
Industrivarden AB, A Shares		11,426		211,017
Investor AB, B Shares		30,141		693,789

				904,806


Food, Beverage & Tobacco 0.1%
Swedish Match AB		25,019		790,515


Materials 0.1%
Boliden AB		7,486		159,896
Holmen AB, B Shares		5,910		208,024
SSAB AB, A Shares		8,865		139,211
Svenska Cellulosa AB, B Shares		22,655		374,732

				881,863


Media 0.0%
Modern Times Group, B Shares		394		26,367


Retailing 0.1%
CDON Group AB *		394		1,905
Hennes & Mauritz AB, B Shares		23,837		779,528

				781,433


Technology Hardware & Equipment 0.3%
Telefonaktiebolaget LM Ericsson, B Shares		121,155		1,559,944


Telecommunication Services 0.3%
Tele2 AB, B Shares		21,867		499,191
TeliaSonera AB		120,761		1,015,913

				1,515,104

				16,611,859

Switzerland 6.4%


Capital Goods 0.6%
ABB Ltd. - Reg’d *		101,061		2,470,392
Geberit AG - Reg’d		2,364		509,960
Schindler Holding AG		2,364		266,298
Schindler Holding AG - Reg’d		3,349		379,778

				3,626,428


Commercial & Professional Services 0.2%
Adecco S.A. - Reg’d		9,653		649,626
SGS S.A. - Reg’d		394		685,457

				1,335,083


Consumer Durables & Apparel 0.5%
Compagnie Financiere Richemont S.A., A Shares		24,231		1,385,634
Swatch Group AG		1,773		754,448
Swatch Group AG - Reg’d		5,319		413,182

				2,553,264


Diversified Financials 0.9%
Credit Suisse Group AG - Reg’d		40,976		1,894,829
GAM Holding Ltd. *		7,486		135,311
Julius Baer Group Ltd.		10,638		476,704
UBS AG - Reg’d *		143,416		2,846,872

				5,353,716


Energy 0.1%
Transocean Ltd. *		5,910		485,161


Food, Beverage & Tobacco 1.4%
Nestle S.A. - Reg’d		141,052		7,982,501


Health Care Equipment & Services 0.0%
Sonova Holding AG - Reg’d		1,773		235,777


Insurance 0.4%
Baloise Holding AG - Reg’d		1,773		191,521
Swiss Reinsurance Co., Ltd. - Reg’d		9,062		554,766
Zurich Financial Services AG		5,122		1,486,259

				2,232,546


Materials 0.5%
Givaudan S.A. - Reg’d		591		588,806
Holcim Ltd. - Reg’d		8,471		621,574
Syngenta AG - Reg’d		4,925		1,650,057

				2,860,437


Pharmaceuticals, Biotechnology & Life Sciences 1.6%
Lonza Group AG - Reg’d		3,152		266,553
Novartis AG - Reg’d		90,620		5,079,673
Roche Holding AG		25,216		3,800,916

				9,147,142


Telecommunication Services 0.1%
Swisscom AG - Reg’d		1,182		521,659


Transportation 0.1%
Kuehne & Nagel International AG - Reg’d		1,970		264,730

				36,598,444

United Kingdom 16.0%


Banks 2.6%
Barclays plc		470,633		2,448,403
HSBC Holdings plc		696,592		7,681,788
Lloyds Banking Group plc *		1,424,704		1,435,788
Royal Bank of Scotland Group plc *		815,974		599,355
Standard Chartered plc		94,609		2,503,653

				14,668,987


Capital Goods 0.5%
BAE Systems plc		132,975		711,358
Bunzl plc		10,638		131,501
Cobham plc		38,415		140,897
European Aeronautic Defence & Space Co. *		13,987		404,923
Invensys plc		30,338		175,371
Rolls-Royce Group plc *		63,631		638,569
Smiths Group plc		12,214		265,609
Wolseley plc *		12,805		445,913

				2,914,141


Commercial & Professional Services 0.1%
Aggreko plc		3,152		74,184
Capita Group plc		24,625		290,581

See financial notes 25

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
G4S plc		55,948		240,239
Hays plc		60,873		123,564
Rentokil Initial plc *		87,862		129,832

				858,400


Consumer Durables & Apparel 0.1%
Burberry Group plc		19,503		380,342


Consumer Services 0.5%
Carnival plc		11,229		502,990
Compass Group plc		88,650		798,088
Intercontinental Hotels Group plc		19,700		438,335
Ladbrokes plc		55,751		122,961
Thomas Cook Group plc		48,462		149,055
TUI Travel plc		38,809		153,073
Whitbread plc		11,623		336,884
William Hill plc		45,704		142,579

				2,643,965


Diversified Financials 0.2%
3i Group plc		42,355		215,145
ICAP plc		32,899		278,521
Man Group plc		72,299		337,848
Provident Financial plc		11,032		185,357
Schroders plc		6,107		177,901
Schroders plc, Non-Voting Shares		5,910		136,595

				1,331,367


Energy 1.8%
AMEC plc		13,002		246,160
BG Group plc		131,990		3,212,713
BP plc		674,528		5,427,452
Cairn Energy plc *		47,280		328,444
Petrofac Ltd.		2,561		58,025
Tullow Oil plc		35,263		823,622

				10,096,416


Food & Staples Retailing 0.5%
J Sainsbury plc		77,224		477,298
Tesco plc		319,140		2,098,127
William Morrison Supermarkets plc		104,016		468,296

				3,043,721


Food, Beverage & Tobacco 1.7%
Associated British Foods plc		14,578		229,168
British American Tobacco plc		78,800		3,155,502
Diageo plc		98,500		1,925,728
Imperial Tobacco Group plc		39,006		1,252,370
SABMiller plc		46,886		1,580,490
Tate & Lyle plc		21,670		204,428
Unilever plc		51,614		1,531,251

				9,878,937


Health Care Equipment & Services 0.1%
Smith & Nephew plc		39,203		453,679


Household & Personal Products 0.3%
Reckitt Benckiser Group plc		31,520		1,625,173


Insurance 0.8%
Admiral Group plc		5,319		146,121
Aviva plc		115,836		878,732
Legal & General Group plc		259,055		500,567
Old Mutual plc		232,460		497,197
Prudential plc		115,442		1,335,958
Resolution Ltd.		152,910		719,264
RSA Insurance Group plc		121,155		276,276
Standard Life plc		83,922		326,097

				4,680,212


Materials 2.6%
Anglo American plc		55,357		3,001,422
Antofagasta plc		10,244		234,432
BHP Billiton plc		89,044		3,524,440
Eurasian Natural Resources Corp.		16,548		259,598
Fresnillo plc		8,077		209,408
Johnson Matthey plc		8,077		243,696
Kazakhmys plc		12,608		296,120
Lonmin plc		8,668		258,849
Randgold Resources Ltd.		3,349		271,540
Rexam plc		40,779		242,094
Rio Tinto plc		57,130		4,004,472
Vedanta Resources plc		6,304		247,006
Xstrata plc		92,196		2,106,893

				14,899,970


Media 0.4%
Aegis Group plc		32,111		74,478
British Sky Broadcasting Group plc		45,507		582,515
Daily Mail & General Trust plc, A Shares		8,668		79,233
ITV plc *		180,058		255,378
Pearson plc		27,974		477,747
Reed Elsevier plc		41,173		367,988
United Business Media Ltd.		7,289		84,471
WPP plc		48,068		661,816

				2,583,626


Pharmaceuticals, Biotechnology & Life Sciences 1.2%
AstraZeneca plc		58,312		2,841,541
GlaxoSmithKline plc		208,229		3,999,864

				6,841,405


Real Estate 0.3%
British Land Co. plc		53,978		512,285
Capital Shopping Centres Group		42,552		273,590
Hammerson plc		41,764		316,618
Land Securities Group plc		30,929		385,596
SEGRO plc		38,809		203,256

				1,691,345


Retailing 0.2%
Home Retail Group plc		27,186		97,501
Kingfisher plc		81,952		339,102
Marks & Spencer Group plc		55,554		313,002
Next plc		5,319		170,951

				920,556


Semiconductors & Semiconductor Equipment 0.1%
ARM Holdings plc		40,779		409,238


Software & Services 0.1%
Autonomy Corp. plc *		9,653		257,961
Logica plc		66,389		148,907
The Sage Group plc		50,629		234,115

				640,983


Telecommunication Services 1.3%
BT Group plc		294,318		872,206
Cable & Wireless Communications plc		142,037		110,891
Cable & Wireless Worldwide plc		132,187		154,479
Inmarsat plc		17,139		186,773

26 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
TalkTalk Telecom Group plc		40,385		98,004
Vodafone Group plc		2,097,262		5,945,717

				7,368,070


Utilities 0.6%
Centrica plc		189,908		1,050,519
International Power plc		62,646		340,631
National Grid plc		125,157		1,162,372
Scottish & Southern Energy plc		33,687		678,872
Severn Trent plc		8,668		209,645
United Utilities Group plc		21,670		208,658

				3,650,697

				91,581,230

United States 0.1%


Health Care Equipment & Services 0.1%
Synthes, Inc.		2,955		405,361

Total Common Stock
(Cost $504,371,990)				565,782,975




Preferred Stock 0.2% of net assets

Germany 0.2%


Automobiles & Components 0.1%
Porsche Automobil Holding SE		2,561		203,109
Volkswagen AG		5,361		910,027

				1,113,136


Household & Personal Products 0.1%
Henkel AG & Co. KGaA		5,910		356,392

				1,469,528

Italy 0.0%


Diversified Financials 0.0%
EXOR S.p.A.		591		14,081

Total Preferred Stock
(Cost $1,105,949)				1,483,609




Other Investment Company 0.2% of net assets

United States 0.2%
State Street Institutional Liquid Reserves Fund - Institutional Class		920,973		920,973

Total Other Investment Company
(Cost $920,973)				920,973




Rights 0.0% of net assets

Austria 0.0%


Real Estate 0.0%
Immofinanz AG *(b)(c)		35,200		—

Hong Kong 0.0%


Real Estate 0.0%
The Wharf Holdings Ltd. *(b)(c)		1,000		1,868

Sweden 0.0%


Telecommunication Services 0.0%
TeliaSonera AB *(b)(c)		117,083		—

Total Rights
(Cost $5,493)				1,868



End of Investments



Collateral Invested for Securities on Loan 0.2% of net assets


State Street Navigator Securities Lending Prime Portfolio		902,696		902,696

Total Collateral Invested for Securities on Loan
(Cost $902,696)				902,696



End of Collateral Invested for Securities on Loan

At 2/28/11, the tax basis cost of the fund’s investments was $506,496,172 and the unrealized appreciation and depreciation were $65,900,210 and ($4,206,957), respectively, with a net unrealized appreciation of $61,693,253.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Illiquid security. At the period end, the value of these amounted to $1,868 or 0% of net assets.
(c)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.


ADR —		American Depositary Receipt
CVA —		Dutch Certificate
GDR —		Global Depositary Receipt
Reg’d —		Registered
REIT —		Real Estate Investment Trust
RSP —		Risparmio (Convertible Savings Shares)

See financial notes 27

Schwab International Equity ETF

Statement of

Assets and Liabilities

As of February 28, 2011 (unaudited)



Assets

Investments, at value including securities on loan of $902,696 (cost $506,404,405)		$568,189,425
Collateral invested for securities on loan		902,696
Foreign currency, at value (cost $1,866,330)		1,897,031
Receivables:
Fund shares sold		17,246,361
Dividends		1,023,570
Foreign tax reclaims		171,988
Income from securities on loan		1,820
Interest	+	95

Total assets		589,432,986

Liabilities

Collateral held for securities on loan		902,696
Payables:
Investments bought		16,601,003
Investment adviser fees	+	5,852

Total liabilities		17,509,551

Net Assets

Total assets		589,432,986
Total liabilities	−	17,509,551

Net assets		$571,923,435

Net Assets by Source
Capital received from investors		512,704,117
Net investment income not yet distributed		641,903
Net realized capital losses		(3,257,452	)
Net unrealized capital gains		61,834,867

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$571,923,435

19,700,001

$29.03

28 See financial notes

Schwab International Equity ETF

Statement of

Operations

For September 1, 2010 through February 28, 2011 (unaudited)



Investment Income

Dividends (net of foreign withholding tax of $307,014)		$3,829,034
Interest		1,459
Securities on loan	+	1,820

Total investment income		3,832,313

Expenses

Investment adviser fees		262,318

Total expenses	−	262,318

Net investment income		3,569,995

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(1,678,102	)
Net realized gains on foreign currency transactions	+	23,345

Net realized losses		(1,654,757	)
Net unrealized gains on investments		80,208,555
Net unrealized gains on foreign currency translations	+	51,808

Net unrealized gains	+	80,260,363

Net realized and unrealized gains		78,605,606

Net increase in net assets resulting from operations		$82,175,601

See financial notes 29

Schwab International Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.



Operations


9/1/10-2/28/11				*10/30/09-8/31/10**
Net investment income		$3,569,995			$4,258,111
Net realized losses		(1,654,757	)		(1,629,858	)
Net unrealized gains (losses)	+	80,260,363			(18,425,496	)

Net increase (decrease) in net assets resulting from operations		82,175,601			(15,797,243	)

Distributions to Shareholders

Distributions from net investment income		($7,027,040	)		($132,000	)

Transactions in Fund Shares

9/1/10-2/28/11

10/30/09*-8/31/10

SHARES

VALUE

SHARES

VALUE

Shares Sold

7,700,000

$210,905,900

12,000,001

$301,798,217

Shares Redeemed

—

Net transactions in fund shares

7,700,000

$210,905,900

12,000,001

$301,798,217

Shares Outstanding and Net Assets

9/1/10-2/28/11

10/30/09*-8/31/10

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

12,000,001

$285,868,974

—

$—

Total increase

7,700,000

286,054,461

12,000,001

285,868,974

End of period

19,700,001

$571,923,435

12,000,001

$285,868,974

Net investment income not yet distributed

$641,903

$4,098,948


*		Commencement of operations.

30 See financial notes

Schwab International Small-Cap Equity ETF™

Financial Statements

Financial Highlights


	9/1/10–			1/13/10¹–
	2/28/11*			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		23.54			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.27			0.21
Net realized and unrealized gains (losses)		6.57			(1.67	)

Total from investment operations		6.84			(1.46	)
Less distributions:
Distributions from net investment income		(0.66	)		—

Net asset value at end of period		29.72			23.54

Total return (%)		29.26	²		(5.84	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.35	³		0.35	³
Gross operating expenses		0.35	³		0.35	³
Net investment income (loss)		1.50	³		2.18	³
Portfolio turnover rate⁴		10	²		7	²
Net assets, end of period ($ x 1,000)		145,632			58,848

* 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 31

Schwab International Small-Cap Equity ETF

Portfolio Holdings as of February 28, 2011 (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				($)		($)

	98	.9%	Common Stock		127,972,460		144,053,022
	0	.4%	Other Investment Companies		546,416		585,699
	0	.4%	Preferred Stock		411,291		545,394
		—%	Rights		25,647		67,843


	99	.7%	Total Investments		128,955,814		145,251,958
	1	.6%	Collateral Invested for Securities on Loan		2,348,995		2,348,995
	(1	.3)%	Other Assets and Liabilities, Net				(1,968,900	)


	100	.0%	Net Assets				145,632,053


	Number		Value
Security	of Shares		($)

Common Stock 98.9% of net assets

Australia 6.0%


Capital Goods 0.4%
Boart Longyear Group		50,298		236,629
Bradken Ltd.		15,657		131,215
Macmahon Holdings Ltd.		142,273		83,304
Monadelphous Group Ltd.		3,791		77,285
UGL Ltd.		7,429		117,862

				646,295


Commercial & Professional Services 0.5%
Cabcharge Australia Ltd.		18,683		106,539
Campbell Brothers Ltd.		6,086		262,521
SAI Global Ltd.		26,080		126,413
Seek Ltd.		15,096		100,534
Transfield Services Ltd.		50,152		168,530

				764,537


Consumer Durables & Apparel 0.1%
G.U.D Holdings Ltd.		13,107		123,058


Consumer Services 0.1%
Invocare Ltd.		24,922		190,335


Diversified Financials 0.1%
Platinum Asset Management Ltd.		17,885		84,505


Energy 0.7%
AWE Ltd. *		57,834		97,172
Carnarvon Petroleum Ltd. *		172,992		62,536
Dart Energy Ltd. *		27,652		28,581
Karoon Gas Australia Ltd. *		14,263		101,959
Linc Energy Ltd.		69,802		199,022
Riversdale Mining Ltd. *		18,744		294,894
Roc Oil Co., Ltd. *		259,369		93,761
Whitehaven Coal Ltd.		21,488		148,136

				1,026,061


Food, Beverage & Tobacco 0.1%
GrainCorp Ltd.		30,447		228,501


Health Care Equipment & Services 0.3%
Primary Health Care Ltd.		40,866		134,829
Ramsay Health Care Ltd.		14,553		262,895

				397,724


Materials 1.6%
Atlas Iron Ltd. *(a)		61,421		240,798
Centamin Egypt Ltd. *		46,852		90,303
Coal of Africa Ltd. *		66,844		94,954
Gindalbie Metals Ltd. *		78,863		89,943
Independence Group NL (a)		21,862		152,050
Kingsgate Consolidated Ltd.		7,803		74,690
Lynas Corp., Ltd. *		171,802		341,145
MacArthur Coal Ltd.		15,878		190,951
Mount Gibson Iron Ltd. *		102,663		210,129
Murchison Metals Ltd. *(a)		58,514		81,929
PanAust Ltd. *		290,343		238,003
Perseus Mining Ltd. *		52,054		156,369
St Barbara Ltd. *		37,689		77,525
Sundance Resources Ltd. *		468,554		236,179

				2,274,968


Media 0.1%
Austar United Communications Ltd. *		81,158		95,040


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Pharmaxis Ltd. *		46,121		116,473


Real Estate 0.8%
Abacus Property Group		48,269		108,627
Bunnings Warehouse Property Trust		80,376		144,051
Centro Retail Group *(b)		417,588		146,704
Charter Hall Retail REIT		45,395		147,922
Cromwell Property Group		114,784		90,001
FKP Property Group		137,547		121,156
ING Industrial Fund		344,743		186,057
ING Office Fund		336,413		208,967

				1,153,485


Retailing 0.5%
Automotive Holdings Group		37,638		106,932
David Jones Ltd.		49,249		231,193
JB Hi-Fi Ltd.		7,650		152,372
Pacific Brands Ltd. *		124,950		112,604
Wotif.com Holdings Ltd.		12,954		68,725

				671,826


Semiconductors & Semiconductor Equipment 0.1%
Silex Systems Ltd. *		27,846		148,867


Software & Services 0.2%
carsales.com.au Ltd. (a)		10,982		56,250
Iress Market Technology Ltd.		24,108		220,452
Oakton Ltd.		32,640		82,096

				358,798


Telecommunication Services 0.0%
TPG Telecom Ltd.		37,060		52,079


Transportation 0.2%
ConnectEast Group		385,934		172,919

32 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Virgin Blue Holdings Ltd. *		208,250		74,221

				247,140


Utilities 0.1%
APA Group		46,376		190,788
Infigen Energy		52,054		18,817

				209,605

				8,789,297

Austria 1.2%


Automobiles & Components 0.1%
Semperit AG Holding		2,856		150,964


Capital Goods 0.3%
Andritz AG		3,009		254,308
Wienerberger AG *		11,713		242,508

				496,816


Consumer Services 0.1%
bwin Interactive Entertainment AG		3,162		108,310


Energy 0.1%
Schoeller-Bleckmann Oilfield Equipment AG		2,074		177,033


Materials 0.2%
Mayr Melnhof Karton AG		714		81,409
RHI AG *		4,097		152,532

				233,941


Real Estate 0.3%
CA Immobilien Anlagen AG *(a)		10,506		180,878
Conwert Immobilien Invest SE		10,149		169,616
Sparkassen Immobilien AG *		12,546		87,492

				437,986


Transportation 0.1%
Oesterreichische Post AG		3,162		98,047

				1,703,097

Belgium 1.7%


Capital Goods 0.3%
Bekaert N.V.		3,842		416,937


Diversified Financials 0.5%
Ackermans & van Haaren N.V.		2,550		221,432
Banque Nationale de Belgique		51		237,034
RHJ International *		14,518		123,121
Sofina S.A.		1,768		165,736

				747,323


Health Care Equipment & Services 0.1%
AGFA-Gevaert N.V. *		20,681		94,835
Omega Pharma S.A.		2,176		105,162

				199,997


Materials 0.2%
Nyrstar (a)		10,761		145,956
Tessenderlo Chemie N.V.		3,111		105,317

				251,273


Real Estate 0.2%
Befimmo S.C.A.		1,819		152,076
Cofinimmo		1,037		144,591

				296,667


Retailing 0.2%
S.A. D’ieteren N.V.		3,603		244,245


Technology Hardware & Equipment 0.1%
EVS Broadcast Equipment S.A.		1,870		113,955


Telecommunication Services 0.1%
Telenet Group Holding N.V. *		5,202		233,513

				2,503,910

Canada 17.3%


Automobiles & Components 0.1%
Linamar Corp.		5,100		110,001


Banks 0.4%
Canadian Western Bank		5,100		161,810
Genworth MI Canada, Inc.		5,100		138,104
Home Capital Group, Inc.		5,100		300,175

				600,089


Capital Goods 0.6%
Aecon Group, Inc.		5,100		48,145
ATS Automation Tooling Systems, Inc. *		10,200		73,265
CAE, Inc.		25,500		324,719
Russel Metals, Inc.		5,100		132,923
Superior Plus Corp.		10,200		117,642
Toromont Industries Ltd.		5,100		163,537

				860,231


Commercial & Professional Services 0.5%
IESI-BFC Ltd.		9,800		242,750
Ritchie Bros Auctioneers, Inc. (a)		10,200		258,624
Stantec, Inc. *		5,100		150,088
Transcontinental, Inc., Class A		5,100		85,301

				736,763


Consumer Durables & Apparel 0.4%
Dorel Industries, Inc., Class B		5,100		165,368
Gildan Activewear, Inc. *		14,700		469,109

				634,477


Diversified Financials 0.8%
AGF Management Ltd., Class B		5,100		102,099
Canaccord Financial, Inc.		5,100		80,486
Dundee Corp., Class A *		5,100		125,440
GMP Capital, Inc.		5,100		77,922
Onex Corp.		14,700		523,713
TMX Group, Inc.		5,100		211,944

				1,121,604


Energy 4.1%
Advantage Oil & Gas Ltd. *		15,300		119,474
AltaGas Ltd.		4,900		124,291
Athabasca Oil Sands Corp. *		29,400		497,768
Bankers Petroleum Ltd. *		34,300		331,896
Birchcliff Energy Ltd. *		10,200		117,537
BlackPearl Resources, Inc. *		20,400		168,090
Calfrac Well Services Ltd.		5,100		181,853
Celtic Exploration Ltd. *		10,200		230,260
Connacher Oil and Gas Ltd. *		45,900		75,358
Corridor Resources, Inc. *(a)		10,200		54,321
Crew Energy, Inc. *		5,100		100,373
Daylight Energy Ltd.		14,700		163,660
Denison Mines Corp. *		56,100		210,688

See financial notes 33

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Ensign Energy Services, Inc.		10,200		174,160
Legacy Oil + Gas, Inc. *		9,800		167,129
Mullen Group Ltd.		5,100		108,379
NuVista Energy Ltd.		10,200		104,873
Paramount Resources Ltd., A Shares *		5,100		189,703
Pason Systems, Inc.		5,100		78,027
Pembina Pipeline Corp. (a)		9,800		221,834
PetroBakken Energy Ltd., A Shares (a)		5,100		116,700
Petrobank Energy & Resources Ltd. *		9,800		251,298
Petrominerales Ltd.		9,949		412,844
Precision Drilling Corp. *		19,600		230,281
Progress Energy Resources Corp.		15,300		202,838
Savanna Energy Services Corp. *		10,200		86,766
ShawCor Ltd., Class A		5,100		192,320
Trican Well Service Ltd.		14,700		341,499
Trinidad Drilling Ltd.		10,200		85,720
Uranium One, Inc. *		58,800		387,354
Vermilion Energy, Inc.		4,900		256,677

				5,983,971


Food & Staples Retailing 0.8%
Alimentation Couche-Tard, Inc., B Shares		10,200		268,881
Empire Co., Ltd., A Shares		5,100		273,486
Metro, Inc., A Shares		10,200		460,520
The Jean Coutu Group PJC, Inc., A Shares		10,200		106,653

				1,109,540


Food, Beverage & Tobacco 0.5%
Cott Corp. *		10,200		84,778
Maple Leaf Foods, Inc.		10,200		123,189
Viterra, Inc.		39,200		478,662

				686,629


Health Care Equipment & Services 0.1%
CML HealthCare, Inc.		10,200		123,503


Insurance 0.1%
Industrial Alliance Insurance & Financial Services, Inc.		5,100		206,501


Materials 5.4%
Alamos Gold, Inc.		10,200		173,951
Aurizon Mines Ltd. *		15,300		108,798
Canfor Corp. *		10,200		125,492
Capstone Mining Corp. *		20,400		91,057
CCL Industries, Inc., Class B		5,100		170,131
Centerra Gold, Inc.		19,600		375,689
China Gold International Resources Corp., Ltd. *		14,700		80,548
Consolidated Thompson Iron Mines Ltd. *		20,400		357,950
Detour Gold Corp. *		5,100		165,473
Dundee Precious Metals, Inc. *		9,800		80,850
Eastern Platinum Ltd. *		61,200		96,709
Equinox Minerals Ltd. *		58,800		345,723
European Goldfields Ltd. *		15,300		197,500
Franco-Nevada Corp.		10,200		346,018
Fronteer Gold, Inc. *		10,200		150,192
Gabriel Resources Ltd. *		15,300		126,538
Gammon Gold, Inc. *		14,700		129,872
Great Basin Gold Ltd. *		30,600		80,382
Harry Winston Diamond Corp. *		5,100		62,066
HudBay Minerals, Inc.		15,300		264,537
Imperial Metals Corp. *		4,900		119,414
Inmet Mining Corp.		5,100		349,629
Lake Shore Gold Corp. *		25,500		105,449
Lundin Mining Corp. *		40,800		320,271
Mercator Minerals Ltd. *		9,800		43,140
Methanex Corp.		10,200		295,884
Minefinders Corp. *		5,100		59,083
New Gold, Inc. *		39,200		376,494
Northgate Minerals Corp. *		25,500		72,480
Novagold Resources, Inc. *		19,600		267,488
Pan American Silver Corp.		10,200		397,408
Quadra Fnx Mining Ltd. *		19,600		285,990
Rubicon Minerals Corp. *		10,200		51,495
SEMAFO, Inc. *		20,400		213,095
Sherritt International Corp.		25,500		237,848
Silver Standard Resources, Inc. *		5,100		137,633
Silvercorp Metals, Inc.		14,700		191,113
Taseko Mines Ltd. *		15,300		96,081
Thompson Creek Metals Co., Inc. *		10,200		133,969
Ventana Gold Corp. *		5,100		68,084
West Fraser Timber Co., Ltd.		4,900		233,800
Western Coal Corp. *		29,400		364,427

				7,949,751


Media 0.8%
Astral Media, Inc.		5,100		204,879
Cogeco Cable, Inc.		5,100		223,352
Groupe Aeroplan, Inc.		24,500		322,041
Imax Corp. *		4,900		129,269
Quebecor, Inc., Class B		5,100		184,470
Torstar Corp., Class B		4,900		72,252

				1,136,263


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Nordion, Inc. *		10,200		116,177


Real Estate 1.4%
Allied Properties Real Estate Investment Trust		5,100		116,334
Boardwalk Real Estate Investment Trust		5,100		239,104
Calloway Real Estate Investment Trust		5,100		129,731
Canadian Apartment Properties Real Estate Investment Trust		5,100		101,576
Canadian Real Estate Investment Trust		5,100		173,585
Chartwell Seniors Housing Real Estate Investment Trust, REIT		10,200		91,476
Cominar Real Estate Investment Trust		5,100		115,496
Dundee Real Estate Investment Trust, REIT		5,100		164,793
Extendicare Real Estate Investment Trust		10,200		105,501
First Capital Realty, Inc.		10,200		170,288
H&R Real Estate Investment Trust		14,700		322,192
InnVest Real Estate Investment Trust		10,200		72,950
Morguard Real Estate Investment Trust		5,100		73,788

34 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Primaris Retail Real Estate Investment Trust		5,100		106,757

				1,983,571


Retailing 0.2%
Dollarama, Inc. *		4,900		146,364
Reitmans Canada Ltd., A Shares		5,100		93,360
RONA, inc. *		5,100		77,451

				317,175


Software & Services 0.4%
MacDonald, Dettwiler & Associates Ltd. *		5,100		273,800
Open Text Corp. *		5,100		298,972

				572,772


Technology Hardware & Equipment 0.2%
Celestica, Inc. *		20,400		240,936


Transportation 0.0%
TransForce, Inc.		5,100		71,956


Utilities 0.4%
ATCO Ltd., Class I		4,900		291,421
Emera, Inc.		9,800		316,661

				608,082

				25,169,992

Denmark 1.2%


Banks 0.3%
Jyske Bank A/S *		5,831		251,685
Sydbank A/S *		6,868		178,122

				429,807


Capital Goods 0.1%
NKT Holding A/S (a)		1,972		112,042


Consumer Durables & Apparel 0.1%
IC Companys A/S		2,074		87,023


Energy 0.1%
Torm A/S *		11,237		76,397


Health Care Equipment & Services 0.1%
GN Store Nord A/S *		22,168		216,830


Insurance 0.1%
Topdanmark A/S *		1,496		209,652


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
ALK-Abello A/S		1,190		73,960


Software & Services 0.1%
SimCorp A/S *		663		107,960


Transportation 0.2%
DSV A/S		17,170		397,276

				1,710,947

Finland 2.3%


Capital Goods 0.9%
Cargotec Corp., B Shares		3,791		169,651
Cramo Oyj *(a)		4,624		139,421
Konecranes Oyj		4,165		186,848
Outotec Oyj		3,332		187,308
Ramirent Oyj		8,738		145,189
Ruukki Group Oyj *		27,642		72,540
Uponor Oyj		5,049		84,939
Vacon Oyj		2,380		140,202
YIT Oyj		8,058		232,054

				1,358,152


Commercial & Professional Services 0.1%
Lassila & Tikanoja Oyj *		4,420		77,716
Poyry Oyj *		6,035		82,105

				159,821


Consumer Durables & Apparel 0.1%
Amer Sports Oyj, A Shares		13,481		178,938


Diversified Financials 0.1%
Pohjola Bank plc, A Shares		14,314		196,123


Materials 0.3%
Huhtamaki Oyj		10,200		142,009
Kemira Oyj		5,355		78,031
M-real Oyj, B Shares *		27,064		113,264
Talvivaara Mining Co. plc *		16,660		148,630

				481,934


Media 0.1%
Alma Media Corp.		8,993		114,647


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Orion Oyj, Class B		7,599		174,020


Real Estate 0.2%
Citycon Oyj		24,310		107,446
Sponda Oyj		25,092		136,896

				244,342


Retailing 0.1%
Stockmann Oyj Abp, B Shares (a)		3,485		112,202


Software & Services 0.1%
Tieto Oyj		7,225		138,810


Telecommunication Services 0.2%
Elisa Oyj		10,251		234,326

				3,393,315

France 4.9%


Automobiles & Components 0.3%
Faurecia *		3,264		127,019
Valeo S.A. *		6,239		388,641

				515,660


Capital Goods 0.5%
Mersen		2,703		136,418
Nexans S.A.		2,703		244,985
Saft Groupe S.A.		2,278		87,296
Zodiac Aerospace		3,111		217,123

				685,822


Commercial & Professional Services 0.3%
Derichebourg S.A. *		18,258		151,384
Seche Environnement S.A.		1,241		114,294
Teleperformance		5,763		219,055

				484,733


Consumer Durables & Apparel 0.3%
Beneteau *		4,471		92,260
Nexity		2,805		139,454
SEB S.A.		1,870		184,079

				415,793

See financial notes 35

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Diversified Financials 0.0%
Financiere Marc de Lacharriere S.A.		1,547		60,384


Energy 0.3%
Bourbon S.A.		5,508		264,176
Etablissements Maurel et Prom		10,506		190,383

				454,559


Food & Staples Retailing 0.1%
Rallye S.A.		2,652		117,287


Food, Beverage & Tobacco 0.1%
Remy Cointreau S.A.		2,125		142,864


Health Care Equipment & Services 0.1%
Medica S.A. *		6,239		125,123


Insurance 0.0%
April Group		1,819		57,534


Materials 0.6%
Arkema		4,675		341,840
Rhodia S.A.		9,095		261,981
S.A. des Ciments Vicat		2,754		234,087

				837,908


Media 0.5%
Canal +		11,917		95,269
Havas S.A.		41,225		232,885
IPSOS		2,907		138,282
M6-Metropole Television		8,160		206,477

				672,913


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Boiron S.A.		1,547		60,191
Stallergenes		1,037		84,363
Virbac S.A.		612		93,447

				238,001


Real Estate 0.1%
Mercialys		2,329		88,639
Societe Immobiliere de Location pour l’Industrie et le Commerce		1,127		145,684

				234,323


Retailing 0.1%
CFAO S.A.		5,202		192,558


Semiconductors & Semiconductor Equipment 0.1%
Silicon-On-Insulator Technologies *		7,429		95,334


Software & Services 0.3%
Alten		3,434		125,904
Altran Technologies S.A. *		15,759		89,699
Groupe Steria SCA		2,856		90,176
UbiSoft Entertainment *		10,200		113,044

				418,823


Technology Hardware & Equipment 0.5%
Gemalto N.V.		6,546		325,714
Ingenico S.A.		4,165		157,854
Neopost S.A.		2,646		251,221

				734,789


Transportation 0.3%
Groupe Eurotunnel S.A. - Reg’d		42,109		424,517


Utilities 0.2%
Rubis		1,394		156,342
Sechilienne S.A.		3,689		104,478

				260,820

				7,169,745

Germany 5.1%


Automobiles & Components 0.2%
ElringKlinger AG		5,202		171,758
Leoni AG *		3,791		158,890

				330,648


Banks 0.1%
Aareal Bank AG *		3,842		134,150


Capital Goods 1.7%
Bauer AG		1,819		89,241
Bilfinger Berger AG		2,550		214,000
Brenntag AG *		1,547		161,856
Conergy AG *(a)		31,229		16,822
Demag Cranes AG *(a)		2,227		107,289
Deutz AG *		18,734		153,829
Gildemeister AG		6,545		144,820
Heidelberger Druckmaschinen AG *		7,276		35,646
Kloeckner & Co. SE *		3,332		108,381
Krones AG *		1,819		120,947
KUKA AG *		5,100		119,715
MTU Aero Engines Holding AG		3,264		217,816
Nordex SE *(a)		5,304		47,758
Pfeiffer Vacuum Technology AG		1,088		145,751
Rheinmetall AG		1,190		96,563
SGL Carbon SE *		6,188		230,936
Solarworld AG (a)		12,495		150,318
Tognum AG		9,265		233,030
Vossloh AG		1,139		146,542

				2,541,260


Consumer Durables & Apparel 0.2%
Gerry Weber International AG		2,652		146,152
Rational AG		408		86,727

				232,879


Diversified Financials 0.1%
MLP AG		9,724		97,776


Health Care Equipment & Services 0.1%
Rhoen Klinikum AG		5,831		128,458


Materials 0.4%
Aurubis AG (a)		3,791		201,957
Fuchs Petrolub AG		1,343		172,344
Symrise AG		8,942		234,848

				609,149


Media 0.4%
Axel Springer AG		1,241		202,432
Kabel Deutschland Holding AG *		4,900		267,196
Sky Deutschland AG *		29,400		121,253

				590,881


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Morphosys AG *		3,944		107,151
Stada Arzneimittel AG		5,457		218,466

				325,617


Real Estate 0.3%
Alstria Office AG		5,933		90,961

36 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Deutsche Euroshop AG		4,165		157,192
Deutsche Wohnen AG *		9,367		140,827
IVG Immobilien AG *		10,659		101,392

				490,372


Retailing 0.4%
BayWa AG		2,227		99,968
Douglas Holding AG		4,097		223,295
Fielmann AG		1,190		106,359
Praktiker Bau- und Heimwerkermaerkte Holding AG		10,200		123,836

				553,458


Semiconductors & Semiconductor Equipment 0.3%
Aixtron AG (a)		7,429		306,545
Dialog Semiconductor plc *		7,276		148,785

				455,330


Software & Services 0.4%
Software AG		1,768		285,587
United Internet AG - Reg’d		10,829		187,711
Wirecard AG		8,007		133,209

				606,507


Technology Hardware & Equipment 0.2%
Wincor Nixdorf AG		2,601		218,137


Telecommunication Services 0.1%
Freenet AG		14,620		168,815

				7,483,437

Greece 0.4%


Banks 0.2%
Piraeus Bank S.A. *		120,000		273,477


Food, Beverage & Tobacco 0.2%
Coca Cola Hellenic Bottling Co. S.A. ADR		8,262		224,892


Materials 0.0%
Titan Cement Co. S.A.		2,000		44,889

				543,258

Hong Kong 4.1%


Automobiles & Components 0.3%
Minth Group Ltd.		102,000		154,523
Xinyi Glass Holdings Co., Ltd.		392,000		319,069

				473,592


Capital Goods 0.1%
China State Construction International Holdings Ltd.		102,000		93,630
CIMC Enric Holdings Ltd. *		32,000		13,393
New Times Energy Corp., Ltd. *		2,074,000		45,266

				152,289


Consumer Durables & Apparel 0.3%
Daphne International Holdings Ltd.		103,000		81,060
Ports Design Ltd.		51,000		120,999
Skyworth Digital Holdings Ltd.		102,000		64,428
Stella International Holdings Ltd.		51,000		104,369

				370,856


Consumer Services 0.5%
Ajisen China Holdings Ltd.		196,000		298,939
REXLot Holdings Ltd.		1,275,000		144,046
SJM Holdings Ltd.		204,000		300,141

				743,126


Energy 0.1%
Brightoil Petroleum Holdings Ltd.		357,000		178,290


Food, Beverage & Tobacco 0.1%
China Green Holdings Ltd.		153,000		119,820


Health Care Equipment & Services 0.1%
Golden Meditech Holdings Ltd. *		612,000		109,999


Materials 0.6%
AMVIG Holdings Ltd.		196,000		154,250
China Grand Forestry Green Resources Group Ltd. *		1,020,000		32,476
China Shanshui Cement Group Ltd.		204,000		153,475
Fufeng Group Ltd.		102,000		69,928
Sino-Forest Corp. *		20,400		454,450

				864,579


Media 0.0%
VODone Ltd.		204,000		64,428


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Sino Biopharmaceutical		204,000		71,238


Real Estate 0.3%
Champion Real Estate Investment Trust		306,000		175,606
GZI Real Estate Investment Trust		408,000		217,903

				393,509


Retailing 0.3%
Dah Chong Hong Holdings Ltd.		153,000		160,677
Giordano International Ltd.		306,000		155,178
Hengdeli Holdings Ltd.		204,000		111,047
Intime Department Store Group Co., Ltd.		51,000		69,666

				496,568


Software & Services 0.2%
G-Resources Group Ltd. *		1,989,000		145,552
Hi Sun Technology China Ltd. *		153,000		53,428
Nan Hai Corp., Ltd. *		7,650,000		55,000

				253,980


Technology Hardware & Equipment 0.5%
AAC Acoustic Technologies Holdings, Inc.		106,000		266,458
China Wireless Technologies Ltd.		196,000		72,973
Digital China Holdings Ltd.		102,000		187,784
VTech Holdings Ltd.		9,800		104,176
Wasion Group Holdings Ltd.		102,000		55,392

				686,783


Transportation 0.2%
Pacific Basin Shipping Ltd.		306,000		177,963
Road King Infrastructure Ltd.		51,000		44,851

				222,814


Utilities 0.5%
Beijing Enterprises Water Group Ltd. *		506,000		181,245
China Gas Holdings Ltd.		392,000		146,953
China Oil and Gas Group Ltd. *		980,000		103,169

See financial notes 37

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
ENN Energy Holdings Ltd.		98,000		290,006

				721,373

				5,923,244

Ireland 0.8%


Capital Goods 0.4%
Charter International plc		13,634		168,203
DCC plc		6,494		208,541
Grafton Group plc		26,860		139,307
Kingspan Group plc		17,170		166,006

				682,057


Consumer Services 0.1%
Paddy Power plc		3,111		126,759


Food, Beverage & Tobacco 0.1%
C&C Group plc		34,153		166,753


Health Care Equipment & Services 0.1%
United Drug plc		31,807		103,240


Materials 0.1%
Smurfit Kappa Group plc *		11,135		138,417

				1,217,226

Israel 0.2%


Semiconductors & Semiconductor Equipment 0.1%
Mellanox Technologies Ltd. *		4,900		130,383


Telecommunication Services 0.1%
B Communications Ltd. *		4,900		157,449

				287,832

Italy 2.5%


Banks 0.5%
Banca Piccolo Credito Valtellinese Scarl		20,553		101,572
Banca Popolare dell’Emilia Romagna Scarl		28,101		358,245
Banca Popolare di Sondrio Scarl		20,825		178,765
Credito Emiliano S.p.A.		10,098		69,876

				708,458


Capital Goods 0.5%
C.I.R. S.p.A-Compagnie Industriali Riunite *		47,107		101,370
Danieli & C Officine Meccaniche S.p.A.		6,596		114,882
Impregilo S.p.A. *		47,413		150,751
Prysmian S.p.A.		15,453		326,558

				693,561


Consumer Durables & Apparel 0.2%
Geox S.p.A. (a)		10,353		56,054
Indesit Co. S.p.A.		6,443		74,441
Safilo Group S.p.A. *		4,900		85,546
Tod’s S.p.A.		1,190		121,711

				337,752


Diversified Financials 0.2%
Azimut Holding S.p.A.		15,606		160,369
Banca Generali S.p.A.		6,545		92,208

				252,577


Energy 0.1%
ERG S.p.A.		8,262		115,826


Food, Beverage & Tobacco 0.1%
Davide Campari-Milano S.p.A.		26,027		167,160


Health Care Equipment & Services 0.2%
DiaSorin S.p.A.		4,214		189,977
Sorin S.p.A. *		62,475		158,602

				348,579


Insurance 0.1%
Societa Cattolica di Assicurazioni S.c.r.l.		5,831		154,633


Materials 0.2%
Italmobiliare S.p.A.		9,673		249,037


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Recordati S.p.A.		10,404		97,357


Software & Services 0.0%
Tiscali S.p.A. *(a)		208,250		24,449


Transportation 0.1%
Ansaldo STS S.p.A.		11,968		168,277


Utilities 0.2%
ACEA S.p.A. *		8,789		101,121
Hera S.p.A.		61,370		138,335
Iren S.p.A.		64,022		114,779

				354,235

				3,671,901

Japan 13.2%


Automobiles & Components 0.5%
Exedy Corp.		4,900		161,300
Keihin Corp.		4,900		108,072
Nissin Kogyo Co., Ltd.		15,300		280,677
TS Tech Co., Ltd.		10,200		215,379

				765,428


Banks 0.6%
Kiyo Holdings, Inc.		153,000		224,094
The Fukui Bank Ltd.		51,000		168,070
The Oita Bank Ltd.		51,000		201,062
The Yachiyo Bank Ltd.		5,100		185,935

				779,161


Capital Goods 3.8%
Aica Kogyo Co., Ltd.		15,300		207,660
Central Glass Co., Ltd.		51,000		227,206
Chudenko Corp.		10,200		128,231
Daifuku Co., Ltd.		25,500		204,797
Furukawa Co., Ltd. *		153,000		181,142
Futaba Corp.		10,200		201,809
Hanwa Co., Ltd.		51,000		236,543
Hitachi Zosen Corp.		102,000		155,621
Hoshizaki Electric Co., Ltd.		5,100		93,870
Inaba Denki Sangyo Co., Ltd.		5,100		148,462
Iseki & Co., Ltd. *(a)		51,000		137,569
Iwatani Corp.		51,000		164,958
Komori Corp.		15,300		162,842
Kyowa Exeo Corp.		15,300		145,661

38 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Meidensha Corp. (a)		51,000		234,054
Nachi-Fujikoshi Corp.		51,000		285,097
Nichias Corp.		51,000		314,976
Noritake Co., Ltd.		51,000		220,981
Noritz Corp.		10,200		172,428
Oiles Corp.		10,200		206,042
Okumura Corp.		51,000		200,439
OSG Corp.		15,300		223,160
Sanwa Holdings Corp.		51,000		181,142
SHO-BOND Holdings Co., Ltd.		5,100		108,063
Sintokogio Ltd.		20,400		224,841
Taikisha Ltd.		10,200		184,504
Toyo Tanso Co., Ltd. (a)		5,100		282,607
Tsubakimoto Chain Co.		51,000		314,354

				5,549,059


Commercial & Professional Services 0.3%
Daiseki Co., Ltd.		5,100		101,091
Duskin Co., Ltd.		10,200		205,420
Mitsubishi Pencil Co., Ltd.		10,200		170,062

				476,573


Consumer Durables & Apparel 0.6%
Foster Electric Co., Ltd.		5,100		136,697
Mizuno Corp.		51,000		244,013
Pioneer Corp. *		40,800		218,616
Sangetsu Co., Ltd.		5,100		126,364
Tomy Co., Ltd.		20,400		176,785

				902,475


Consumer Services 0.4%
Accordia Golf Co., Ltd.		204		170,560
Doutor Nichires Holdings Co., Ltd.		15,300		204,859
Saizeriya Co., Ltd. (a)		10,200		193,966

				569,385


Diversified Financials 0.6%
Fuyo General Lease Co., Ltd.		5,100		188,612
IBJ Leasing Co., Ltd.		5,100		132,091
Ichiyoshi Securities Co., Ltd.		25,500		193,592
Japan Securities Finance Co., Ltd.		25,500		190,480
Tokai Tokyo Financial Holdings, Inc.		51,000		187,990

				892,765


Food, Beverage & Tobacco 0.7%
Fuji Oil Co., Ltd.		15,300		217,558
Hokuto Corp.		10,200		235,547
Megmilk Snow Brand Co., Ltd.		15,300		273,021
Morinaga Milk Industry Co., Ltd.		51,000		214,134

				940,260


Health Care Equipment & Services 0.1%
Toho Holdings Co., Ltd.		14,700		182,830


Household & Personal Products 0.3%
Fancl Corp.		10,200		150,765
Mandom Corp.		5,100		136,324
Unihair Co., Ltd. *		15,300		161,908

				448,997


Materials 2.5%
Adeka Corp.		15,300		170,871
Earth Chemical Co., Ltd.		5,100		170,685
FP Corp.		4,900		276,608
Fujimi, Inc.		10,200		157,239
Kureha Corp.		51,000		273,892
Nifco, Inc.		10,200		274,266
Nippon Light Metal Co., Ltd. *		102,000		217,869
Nippon Soda Co., Ltd.		51,000		269,535
NOF Corp.		51,000		257,708
Sakai Chemical Industry Co., Ltd.		51,000		290,077
Sanyo Special Steel Co., Ltd.		51,000		334,896
Toagosei Co., Ltd.		51,000		260,198
Tokyo Ohka Kogyo Co., Ltd.		10,200		222,226
Toyo Ink Manufacturing Co., Ltd.		51,000		258,953
Yodogawa Steel Works Ltd.		51,000		227,206

				3,662,229


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
ASKA Pharmaceutical Co., Ltd.		25,000		209,325
Nichi-iko Pharmaceutical Co., Ltd. (a)		5,100		142,548
Seikagaku Corp.		9,800		111,481

				463,354


Real Estate 0.2%
Hulic Co., Ltd.		25,500		233,431


Retailing 0.5%
K’s Holdings Corp.		5,300		178,284
Sanrio Co., Ltd.		9,800		322,719
Tsutsumi Jewelry Co., Ltd.		10,200		272,523

				773,526


Semiconductors & Semiconductor Equipment 0.2%
Sanken Electric Co., Ltd.		51,000		340,498


Software & Services 0.4%
eAccess Ltd. (a)		343		216,023
Fuji Soft, Inc.		10,200		174,793
Net One Systems Co., Ltd.		102		163,215

				554,031


Technology Hardware & Equipment 0.7%
HORIBA Ltd.		5,100		158,795
Hosiden Corp.		15,300		174,793
Nichicon Corp.		15,300		216,437
Ryosan Co., Ltd.		5,100		133,523
Ryoyo Electro Corp.		24,500		282,589

				966,137


Transportation 0.5%
Japan Airport Terminal Co., Ltd.		10,200		154,376
Sankyu, Inc.		51,000		240,278
The Sumitomo Warehouse Co., Ltd.		51,000		280,117

				674,771

				19,174,910

Liechtenstein 0.1%


Banks 0.1%
Liechtensteinische Landesbank AG		1,139		95,586

Luxembourg 0.2%


Commercial & Professional Services 0.1%
Regus plc		75,276		130,517


Real Estate 0.1%
GAGFAH S.A.		8,738		103,612

				234,129

See financial notes 39

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Netherlands 2.4%


Capital Goods 0.5%
Aalberts Industries N.V.		10,557		225,282
Arcadis N.V.		4,879		116,751
Heijmans N.V. *		2,907		68,157
Imtech N.V.		6,664		240,739
Koninklijke BAM Groep N.V.		19,618		126,242

				777,171


Commercial & Professional Services 0.1%
USG People N.V. *		8,058		164,831


Consumer Durables & Apparel 0.1%
Koninklijke Ten Cate N.V.		3,638		132,404
TomTom N.V. *(a)		7,276		64,136

				196,540


Diversified Financials 0.1%
BinckBank N.V.		7,599		126,264
SNS REAAL N.V. *		16,541		85,879

				212,143


Food & Staples Retailing 0.1%
Sligro Food Group N.V.		3,213		106,951


Food, Beverage & Tobacco 0.3%
CSM		6,545		232,824
Nutreco Holding N.V.		3,213		237,866

				470,690


Health Care Equipment & Services 0.1%
Mediq N.V.		6,392		118,304


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Crucell N.V. *		7,429		253,702


Real Estate 0.5%
Eurocommercial Properties N.V.		4,097		196,671
Nieuwe Steen Investments Funds N.V.		5,253		108,033
VastNed Retail N.V.		2,074		148,100
Wereldhave N.V.		2,023		205,623

				658,427


Semiconductors & Semiconductor Equipment 0.2%
ASM International N.V. *		6,239		253,478


Software & Services 0.1%
Unit 4 N.V.		3,893		130,984


Technology Hardware & Equipment 0.1%
TKH Group N.V.		4,624		110,873

				3,454,094

New Zealand 0.3%


Energy 0.0%
New Zealand Oil & Gas Ltd.		51,527		34,071


Insurance 0.1%
TOWER Ltd.		86,836		127,887


Real Estate 0.0%
Goodman Property Trust		106,675		73,743


Transportation 0.1%
Mainfreight Ltd.		27,013		164,005


Utilities 0.1%
Infratil Ltd.		74,800		109,037

				508,743

Norway 2.1%


Banks 0.1%
SpareBank 1 SMN *		10,404		102,178
SpareBank 1 SR Bank		10,404		110,537

				212,715


Capital Goods 0.1%
Veidekke A.S.A. *		10,404		91,031


Commercial & Professional Services 0.1%
Tomra Systems A.S.A.		26,027		183,575


Energy 1.1%
Aker A.S.A., A Shares		2,450		71,966
BW Offshore Ltd. *		41,650		105,608
DNO International A.S.A. *		99,739		169,905
Fred Olsen Energy A.S.A.		2,601		109,330
Frontline Ltd.		5,202		140,633
Golar LNG Ltd.		5,202		97,533
Norwegian Energy Co. *		30,600		98,353
Petroleum Geo-Services A.S.A. *		15,606		257,348
ProSafe SE		20,825		156,924
Sevan Marine A.S.A. *		52,938		55,015
Songa Offshore SE *		20,825		126,060
TGS Nopec Geophysical Co. A.S.A.		8,548		220,712

				1,609,387


Food, Beverage & Tobacco 0.3%
Cermaq A.S.A. *		10,404		177,417
Marine Harvest A.S.A.		232,764		273,278

				450,695


Media 0.1%
Schibsted A.S.A.		6,392		195,176


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Algeta A.S.A. *		3,944		78,172


Real Estate 0.1%
Norwegian Property A.S.A. *		52,054		92,764


Semiconductors & Semiconductor Equipment 0.0%
Nordic Semiconductor A.S.A.		18,258		65,856


Software & Services 0.1%
Atea A.S.A.		10,404		114,718

				3,094,089

Portugal 0.4%


Capital Goods 0.1%
Mota-Engil, SGPS, S.A.		24,565		67,180
Sonae		98,447		111,227

				178,407


Materials 0.1%
Portucel-Empresa Produtora de Pasta e Papel S.A.		26,027		92,208
Semapa-Sociedade de Investimento e Gestao, SGPS, S.A.		8,160		98,843

				191,051

40 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number			Value
Security	of Shares			($)


Media 0.1%
Zon Multimedia Servicos de Telecomunicacoes e Multimedia, SGPS, S.A.		35,921			188,533


Utilities 0.1%
Redes Energeticas Nacionais S.A.		17,901			62,406

					620,397

Republic of Korea 2.9%


Automobiles & Components 0.0%
S&T Daewoo Co., Ltd. *		600			15,204
S&T Dynamics Co., Ltd.		1,200			17,756

					32,960


Banks 0.3%
KB Financial Group, Inc. ADR		4,165			203,043
Shinhan Financial Group Co., Ltd. ADR		2,601			217,990

					421,033


Capital Goods 0.1%
Kumho Electric Co., Ltd.		200	��		6,344
LG International Corp.		2,350			76,102
Sung Kwang Bend Co., Ltd.		1,300			19,581

					102,027


Commercial & Professional Services 0.0%
KEPCO Plant Service & Engineer Co., Ltd.		600			20,600


Consumer Services 0.2%
Hana Tour Service, Inc.		1,298			50,659
Hotel Shilla Co., Ltd.		7,400			176,370

					227,029


Diversified Financials 0.1%
Hanwha Securities Co.		13,800			93,904
Tong Yang Securities, Inc.		7,500			51,167

					145,071


Food, Beverage & Tobacco 0.1%
Daesang Corp. *		1,800			11,243
Orion Corp.		230			77,234

					88,477


Insurance 0.3%
Hanwha General Insurance Co., Ltd. *		3,400			26,539
Hyundai Marine & Fire Insurance Co., Ltd.		10,000			240,553
Meritz Fire & Marine Insurance Co., Ltd.		25,000			203,562

					470,654


Materials 0.6%
Korea Kumho Petrochemical *		2,000			237,452
OCI Materials Co., Ltd.		1,500			137,819
Poongsan Corp.		4,000			146,370
Seah Besteel Corp.		4,000			145,306
SK Chemicals Co., Ltd.		4,000			208,391

					875,338


Media 0.0%
CJ CGV Co. Ltd.		2,000			43,415


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Celltrion, Inc. *		14,000			397,555


Retailing 0.1%
CJ O Shopping Co., Ltd.		408			85,891
Dongsuh Co., Inc.		800			25,694
Hyundai Greenfood Co. Ltd.		5,000			48,288

					159,873


Semiconductors & Semiconductor Equipment 0.3%
Jusung Engineering Co., Ltd. *		2,200			35,476
Samsung Electronics Co., Ltd. GDR - Reg’d		204			83,559
Seoul Semiconductor Co., Ltd.		7,500			280,091

					399,126


Software & Services 0.0%
Korea Digital Communications Corp. *		7,740			12,790
Posco ICT Co., Ltd. *		3,500			24,808

					37,598


Technology Hardware & Equipment 0.3%
Ace Digitech Co., Ltd. *		340			4,564
Daeduck Electronics Co.		4,800			39,424
Humax Co., Ltd.		3,635			47,666
LG Display Co., Ltd. ADR		8,330			133,113
LG Innotek Co., Ltd.		1,500			169,450
SFA Engineering Corp.		1,240			71,633

					465,850


Telecommunication Services 0.2%
KT Corp. ADR		4,624			91,509
SK Telecom Co., Ltd. ADR		12,376			217,694

					309,203


Transportation 0.0%
Asiana Airlines *		6,140			55,489

					4,251,298

Singapore 1.4%


Consumer Durables & Apparel 0.1%
China Hongxing Sports Ltd. (b)		884,000			79,994


Consumer Services 0.1%
Raffles Education Corp., Ltd. *(a)		612,000			125,208


Energy 0.2%
Ezra Holdings Ltd.		102,000			125,207
Straits Asia Resources Ltd.		102,000			188,614

					313,821


Food, Beverage & Tobacco 0.1%
Indofood Agri Resources Ltd. *		102,000			182,996
Synear Food Holdings Ltd. *		408,000			56,183

					239,179


Materials 0.1%
OM Holdings Ltd.		70,482			109,093


Real Estate 0.5%
CDL Hospitality Trusts		102,000			155,707
Ho Bee Investment Ltd. *		102,000			106,747
Mapletree Logistics Trust		255,000			180,588
Suntec Real Estate Investment Trust		294,000			342,385

					785,427

See financial notes 41

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Retailing 0.1%
Oceanus Group Ltd. *		459,000		79,459


Transportation 0.1%
SATS Ltd.		102,000		204,666


Utilities 0.1%
Hyflux Ltd. (a)		98,000		148,058

				2,084,905

Spain 1.8%


Banks 0.0%
Banco Pastor S.A.		13,209		67,504


Capital Goods 0.4%
Abengoa S.A. (a)		4,165		116,866
Construcciones y Auxiliar de Ferrocarriles S.A.		306		168,594
Obrascon Huarte Lain S.A.		6,970		231,914
Sacyr Vallehermoso S.A. *(a)		9,800		108,895

				626,269


Commercial & Professional Services 0.1%
Prosegur, Compania de Seguridad S.A. - Reg’d		1,768		99,827


Consumer Services 0.2%
NH Hoteles S.A. *(a)		25,194		153,807
Sol Melia S.A. (a)		8,993		98,872

				252,679


Diversified Financials 0.2%
Bolsas y Mercados Espanoles S.A. (a)		7,123		217,180


Energy 0.1%
Tecnicas Reunidas S.A.		3,111		179,031


Food, Beverage & Tobacco 0.2%
Ebro Foods S.A.		8,840		193,953
Viscofan S.A.		2,601		92,399

				286,352


Insurance 0.1%
Grupo Catalana Occidente S.A. (a)		5,610		118,553


Materials 0.1%
Grupo Empresarial Ence S.A. *		20,400		69,877
Tubacex S.A. *		19,312		75,887

				145,764


Media 0.1%
Antena 3 de Television S.A. (a)		8,262		80,223
Promotora de Informaciones S.A., A Shares *(a)		34,300		94,750

				174,973


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Almirall S.A.		5,253		60,293
Faes Farma S.A.		39,200		164,053
Zeltia S.A. *		37,044		157,845

				382,191

				2,550,323

Sweden 3.7%


Capital Goods 0.9%
Cardo AB		2,907		191,969
Hexagon AB, B Shares		19,363		427,345
Lindab International AB *		8,789		103,236
NCC AB, B Shares		7,854		205,228
Peab AB		18,632		156,155
Trelleborg AB, B Shares		21,488		215,735

				1,299,668


Commercial & Professional Services 0.2%
Loomis AB, B Shares		8,585		125,117
Niscayah Group AB *		57,154		112,416

				237,533


Consumer Durables & Apparel 0.2%
Husqvarna AB, A Shares		17,697		142,168
JM AB		5,984		147,005

				289,173


Consumer Services 0.2%
Betsson AB *		6,035		123,230
Rezidor Hotel Group AB *		21,182		123,482
SkiStar AB		5,049		90,933

				337,645


Diversified Financials 0.3%
Avanza Bank Holding AB		3,842		136,872
Investment AB Oresund		6,817		120,890
L.E. Lundbergforetagen AB, B Shares		1,972		151,783

				409,545


Energy 0.2%
Lundin Petroleum AB *		22,321		277,875


Food & Staples Retailing 0.2%
Axfood AB		4,624		177,734
Hakon Invest AB		8,585		142,410

				320,144


Food, Beverage & Tobacco 0.1%
AarhusKarlshamn AB		6,290		169,428


Health Care Equipment & Services 0.1%
Elekta AB, B Shares		5,151		196,607


Materials 0.2%
Billerud AB		11,186		121,053
Hoganas AB, B Shares		3,893		136,536

				257,589


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Meda AB, A Shares		20,604		180,494


Real Estate 0.7%
Castellum AB		15,708		224,832
Fabege AB		18,479		199,976
Hufvudstaden AB, A Shares		11,033		129,420
Kungsleden AB		15,980		156,523
Wallenstam AB, B Shares		4,998		136,206
Wihlborgs Fastigheter AB		5,151		148,920

				995,877


Retailing 0.1%
Clas Ohlson AB, B Shares		3,485		50,790
Mekonomen AB		3,842		130,802

				181,592


Technology Hardware & Equipment 0.1%
Axis Communications AB		6,919		146,746

42 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Transportation 0.1%
SAS AB *(a)		21,338		72,477

				5,372,393

Switzerland 5.2%


Automobiles & Components 0.1%
Rieter Holding AG - Reg’d *		459		186,672


Banks 0.4%
Banque Cantonale Vaudoise - Reg’d		255		141,705
Basler Kantonalbank		833		129,147
St Galler Kantonalbank AG - Reg’d		204		103,981
Valiant Holding AG - Reg’d		1,292		187,937

				562,770


Capital Goods 1.4%
Belimo Holding AG - Reg’d		102		194,134
Bobst Group AG - Reg’d *		2,329		107,749
Bucher Industries AG - Reg’d		1,190		258,114
Georg Fischer AG - Reg’d *		459		258,278
Huber & Suhner AG - Reg’d		2,329		155,860
Kaba Holding AG, B Shares - Reg’d		459		198,030
Meyer Burger Technology AG *		3,587		123,690
OC Oerlikon Corp. AG - Reg’d *		17,493		119,324
Schweiter Technologies AG		204		166,589
Sulzer AG - Reg’d		2,805		434,881
Von Roll Holding AG		11,866		59,876

				2,076,525


Consumer Durables & Apparel 0.1%
Forbo Holding AG - Reg’d		306		203,791


Consumer Services 0.1%
Kuoni Reisen Holding AG - Reg’d		255		113,309


Diversified Financials 0.3%
Bank Sarasin & Cie AG, B Shares - Reg’d *		3,740		161,358
Partners Group Holding AG		459		82,224
Vontobel Holding AG - Reg’d *		3,434		128,944

				372,526


Energy 0.1%
Petroplus Holdings AG *		7,123		115,338


Food, Beverage & Tobacco 0.3%
Aryzta AG		7,276		339,748
Barry Callebaut AG - Reg’d *		204		167,576

				507,324


Health Care Equipment & Services 0.2%
Galenica AG - Reg’d		408		234,629


Insurance 0.2%
Helvetia Holding AG - Reg’d		561		240,528


Materials 0.5%
Clariant AG - Reg’d *		18,156		299,263
Ems-Chemie Holding AG - Reg’d		1,292		236,173
Ferrexpo plc		19,516		133,161

				668,597


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Tecan Group AG - Reg’d		1,292		111,136


Real Estate 0.5%
Allreal Holding AG - Reg’d		765		118,275
Intershop Holdings AG		306		105,352
Mobimo Holding AG - Reg’d *		663		143,022
PSP Swiss Property AG - Reg’d *		2,601		207,363
Swiss Prime Site AG - Reg’d *		2,856		210,947

				784,959


Retailing 0.2%
Dufry Group - Reg’d *		1,496		169,003
Valora Holding AG - Reg’d		510		183,818

				352,821


Software & Services 0.1%
Temenos Group AG - Reg’d *		4,573		173,434


Technology Hardware & Equipment 0.4%
Ascom Holding AG - Reg’d *		8,687		127,111
Kudelski S.A.		5,202		99,064
Logitech International S.A. - Reg’d *		15,453		293,781

				519,956


Transportation 0.2%
Flughafen Zuerich AG - Reg’d		255		103,501
Panalpina Welttransport Holding AG - Reg’d *		1,666		215,632

				319,133

				7,543,448

United Kingdom 17.2%


Automobiles & Components 0.3%
GKN plc		114,529		391,005


Banks 0.1%
Paragon Group of Cos. plc		35,819		102,887


Capital Goods 2.9%
Ashtead Group plc		62,356		173,837
Balfour Beatty plc		55,029		312,819
Bodycote plc		30,396		150,938
Carillion plc		36,856		225,398
Chemring Group plc		3,009		160,381
Cookson Group plc *		25,874		275,230
Fenner plc		22,423		115,905
IMI plc		23,426		338,730
Keller Group plc		8,891		90,166
Kier Group plc		5,100		112,399
Meggitt plc		57,885		318,415
Melrose plc		45,543		225,116
Morgan Crucible Co. plc		34,153		160,984
Qinetiq Group plc *		63,971		131,518
Senior plc		58,718		143,162
SIG plc *		62,475		131,795
Spirax-Sarco Engineering plc		6,596		196,437
The Weir Group plc		16,439		458,290
Travis Perkins plc		22,066		357,109
Ultra Electronics Holdings plc		5,984		167,115

				4,245,744


Commercial & Professional Services 1.1%
Babcock International Group plc		26,027		237,488
Berendsen plc		18,683		146,075
Connaught plc (b)(c)		8,425		—
De La Rue plc		9,418		110,292
Homeserve plc		28,101		206,821
Intertek Group plc		8,840		259,384
ITE Group plc		33,830		129,803

See financial notes 43

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Michael Page International plc		30,294		253,510
Mitie Group plc		36,652		120,302
RPS Group plc		27,591		89,439
WS Atkins plc		12,019		136,256

				1,689,370


Consumer Durables & Apparel 0.8%
Barratt Developments plc *		91,205		159,323
Bellway plc		11,713		128,215
Bovis Homes Group plc *		15,708		117,526
Pace plc		29,155		101,907
Persimmon plc		27,370		209,409
Redrow plc *		38,471		84,661
Taylor Wimpey plc *		298,418		191,918
The Berkeley Group Holdings plc *		12,597		212,061

				1,205,020


Consumer Services 0.9%
Dignity plc		6,277		70,088
Domino’s Pizza UK & IRL plc		12,750		96,307
Enterprise Inns plc *		57,732		89,394
Greene King plc		20,927		157,697
J.D. Wetherspoon plc		13,940		99,763
Marston’s plc		68,034		109,108
Millennium & Copthorne Hotels plc		17,017		159,565
Mitchells & Butlers plc *		37,009		195,935
PartyGaming plc *		45,815		130,034
Punch Taverns plc *		75,480		81,518
Rank Group plc		52,785		112,470
Restaurant Group plc		21,437		97,907

				1,399,786


Diversified Financials 1.5%
Aberdeen Asset Management plc		86,938		296,667
Ashmore Group plc		20,604		112,367
Close Brothers Group plc		12,070		163,926
F&C Asset Management plc		71,638		100,498
Henderson Group plc		56,219		146,762
IG Group Holdings plc		30,821		224,684
Intermediate Capital Group plc		39,355		205,731
International Personal Finance		27,795		150,273
Investec plc		40,188		308,919
London Stock Exchange Group plc (a)		15,878		232,430
Rathbone Brothers		6,545		123,913
Tullett Prebon plc		20,825		137,892

				2,204,062


Energy 1.7%
Afren plc *		104,125		271,144
EnQuest plc *		62,475		144,599
Heritage Oil plc *		14,875		64,115
Hunting plc		14,314		185,322
JKX Oil & Gas plc		17,697		87,446
John Wood Group plc		32,317		346,920
Premier Oil plc *		10,149		344,013
Salamander Energy plc *		19,159		96,322
SOCO International plc *		27,489		152,017
Subsea 7 S.A.		28,910		742,851

				2,434,749


Food, Beverage & Tobacco 0.5%
Britvic plc		25,296		149,970
Cranswick plc		8,330		114,826
Dairy Crest Group plc		21,811		128,457
Devro plc		27,948		119,553
Greggs plc		16,660		131,423
Premier Foods plc *		130,305		57,796

				702,025


Household & Personal Products 0.1%
McBride plc		18,887		44,237
PZ Cussons plc		18,377		104,167

				148,404


Insurance 0.9%
Amlin plc		38,318		241,506
Beazley plc		63,971		143,171
Brit Insurance Holdings N.V. *		10,404		180,559
Catlin Group Ltd.		30,821		188,641
Hiscox Ltd.		31,909		198,777
Jardine Lloyd Thompson Group plc		12,954		137,058
Lancashire Holdings Ltd.		17,017		166,207
St James’s Place plc		15,657		77,672

				1,333,591


Materials 1.1%
Aquarius Platinum Ltd.		32,215		211,267
Croda International plc		7,803		201,035
DS Smith plc		45,492		147,246
Filtrona plc		29,359		143,257
Hochschild Mining plc		15,504		149,034
Mondi plc		33,048		294,833
Petropavlovsk plc		15,708		276,952
Victrex plc		7,276		154,557

				1,578,181


Media 0.4%
Informa plc		56,219		397,490
Rightmove plc		10,659		154,385

				551,875


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
BTG plc *		28,781		101,021
Genus plc		7,378		103,203
Hikma Pharmaceuticals plc		15,606		194,308

				398,532


Real Estate 0.8%
Atrium European Real Estate Ltd.		18,989		121,853
Big Yellow Group plc		15,929		83,684
Capital & Counties Properties plc		53,618		130,466
Derwent London plc		7,123		196,723
Grainger plc		33,779		55,546
Great Portland Estates plc		27,795		175,274
Helical Bar plc		13,583		61,992
Savills plc		15,300		94,191
Shaftesbury plc		19,261		149,372
Unite Group plc *		18,156		59,180

				1,128,281


Retailing 0.9%
Carpetright plc		4,930		57,334
Debenhams plc *		123,284		125,827
Dixons Retail plc *		343,298		108,213
Game Group plc		47,209		46,839
Halfords Group plc		18,938		119,360
Howden Joinery Group plc *		68,816		129,390
Inchcape plc *		46,852		295,827

44 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Kesa Electricals plc		58,667		122,236
Mothercare plc		9,724		75,917
N Brown Group plc		25,347		110,488
WH Smith plc		16,286		121,850

				1,313,281


Semiconductors & Semiconductor Equipment 0.1%
CSR plc *		14,518		92,022


Software & Services 0.5%
Aveva Group plc		6,817		176,741
Fidessa Group plc		4,318		115,883
Micro Focus International plc		18,632		85,763
Misys plc *		40,354		215,679
Telecity Group plc *		15,657		121,295
Xchanging plc		15,606		14,215

				729,576


Technology Hardware & Equipment 1.0%
Electrocomponents plc		43,571		195,880
Halma plc		34,765		190,275
Imagination Technologies Group plc *		21,811		145,840
Laird plc		36,278		94,528
Premier Farnell plc		38,981		192,237
Rotork plc		7,599		220,004
Spectris plc		11,441		259,406
Spirent Communications plc		62,475		158,520

				1,456,690


Telecommunication Services 0.1%
Colt Group S.A. *		52,054		129,539


Transportation 0.9%
BBA Aviation plc		61,064		220,988
easyJet plc *		25,602		148,869
FirstGroup plc		39,559		234,722
Forth Ports plc		4,675		115,655
Go-Ahead Group plc		6,239		142,779
National Express Group plc *		49,555		199,891
Stagecoach Group plc		61,115		205,865
Stobart Group Ltd.		52,054		124,459

				1,393,228


Utilities 0.3%
Northumbrian Water Group plc		29,869		158,183
Pennon Group plc		25,245		259,711

				417,894

				25,045,742

United States 0.3%


Health Care Equipment & Services 0.2%
SXC Health Solutions Corp. *		5,100		250,617


Materials 0.1%
Alacer Gold Corp. *		14,700		140,883
Golden Star Resources Ltd. *		20,400		64,264

				205,147

				455,764

Total Common Stock
(Cost $127,972,460)				144,053,022




Preferred Stock 0.4% of net assets

Germany 0.4%


Consumer Durables & Apparel 0.1%
Hugo Boss AG		1,972		148,171


Materials 0.1%
Fuchs Petrolub AG		884		123,319


Media 0.2%
ProSiebenSat.1 Media AG		7,650		247,724

				519,214

United Kingdom 0.0%


Software & Services 0.0%
Misys plc (b)(c)		42,357		26,180

Total Preferred Stock
(Cost $411,291)				545,394




Other Investment Companies 0.4% of net assets

Guernsey 0.1%
FCPT Ltd.		46,852		77,424

Luxembourg 0.1%
ProLogis European Properties *		16,235		112,141

Switzerland 0.1%
BB Biotech AG		1,139		77,449
Schroder ImmoPLUS		102		120,058

				197,507

United States 0.1%
State Street Institutional Liquid Reserves Fund - Institutional Class		198,627		198,627

Total Other Investment Companies
(Cost $546,416)				585,699




Rights 0.0% of net assets

Australia 0.0%


Real Estate 0.0%
Bunnings Warehouse Property Trust (b)(c)		16,607		1,014

Belgium 0.0%


Materials 0.0%
Nyrstar *		10,761		29,132

See financial notes 45

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Hong Kong 0.0%


Utilities 0.0%
Beijing Enterprises Water Group Ltd. (b)(c)		225,000		37,697

Total Rights
(Cost $25,647)				67,843



End of Investments



Collateral Invested for Securities on Loan 1.6% of net assets


State Street Navigator Securities Lending Prime Portfolio		2,348,995		2,348,995

Total Collateral Invested for Securities on Loan
(Cost $2,348,995)				2,348,995



End of Collateral Invested for Securities on Loan

At 2/28/11, the tax basis cost of the fund’s investments was $128,988,147 and the unrealized appreciation and depreciation were $18,195,418 and ($1,931,607), respectively, with a net unrealized appreciation of $16,263,811.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(c)		Illiquid security. At the period end, the value of these amounted to $64,891 or 0.0% of net assets.


ADR —		American Depositary Receipt
GDR —		Global Depositary Receipt
Reg’d —		Registered
REIT —		Real Estate Investment Trust

46 See financial notes

Schwab International Small-Cap Equity ETF

Statement of

Assets and Liabilities

As of February 28, 2011 (unaudited)



Assets

Investments, at value including securities on loan of $2,222,520 (cost $128,955,814)		$145,251,958
Collateral invested for securities on loan		2,348,995
Foreign currency, at value (cost $264,280)		265,626
Receivables:
Dividends		100,991
Foreign tax reclaims		14,699
Income from securities on loan		2,932
Interest	+	52

Total assets		147,985,253

Liabilities

Collateral held for securities on loan		2,348,995
Payables:
Investment adviser fees	+	4,205

Total liabilities		2,353,200

Net Assets

Total assets		147,985,253
Total liabilities	−	2,353,200

Net assets		$145,632,053

Net Assets by Source
Capital received from investors		129,287,982
Distributions in excess of net investment income		(912,659	)
Net realized capital gains		956,350
Net unrealized capital gains		16,300,380

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$145,632,053

4,900,001

$29.72

See financial notes 47

Schwab International Small-Cap Equity ETF

Statement of

Operations

For September 1, 2010 through February 28, 2011 (unaudited)



Investment Income

Dividends (net of foreign withholding tax of $56,961)		$844,723
Interest		342
Securities on loan	+	2,932

Total investment income		847,997

Expenses

Investment adviser fees		160,347

Total expenses	−	160,347

Net investment income		687,650

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(104,907	)
Net realized gains on in-kind redemptions		1,278,727
Net realized gains on foreign currency transactions	+	22,554

Net realized gains		1,196,374
Net unrealized gains on investments		18,171,325
Net unrealized gains on foreign currency translations	+	5,025

Net unrealized gains	+	18,176,350

Net realized and unrealized gains		19,372,724

Net increase in net assets resulting from operations		$20,060,374

48 See financial notes

Schwab International Small-Cap Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.



Operations


9/1/10-2/28/11				*1/13/10-8/31/10**
Net investment income		$687,650			$522,045
Net realized gains (losses)		1,196,374			(235,657	)
Net unrealized gains (losses)	+	18,176,350			(1,875,970	)

Net increase (decrease) in net assets resulting from operations		20,060,374			(1,589,582	)

Distributions to Shareholders

Distributions from net investment income		($2,126,721	)		($—	)

Transactions in Fund Shares

9/1/10-2/28/11

1/13/10*-8/31/10

SHARES

VALUE

SHARES

VALUE

Shares Sold

2,600,000

$74,566,890

2,500,001

$60,437,289

Shares Redeemed

(200,000

)

(5,716,197

)

—

Net transactions in fund shares

2,400,000

$68,850,693

2,500,001

$60,437,289

Shares Outstanding and Net Assets

9/1/10-2/28/11

1/13/10*-8/31/10

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

2,500,001

$58,847,707

—

$—

Total increase

2,400,000

86,784,346

2,500,001

58,847,707

End of period

4,900,001

$145,632,053

2,500,001

$58,847,707

(Distributions in excess of net investment income)/
Net investment income not yet distributed

($912,659

)

$526,412


*		Commencement of operations.

See financial notes 49

Schwab Emerging Markets Equity ETF™

Financial Statements

Financial Highlights


	9/1/10–			1/13/10¹–
	2/28/11*			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		24.30			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.08			0.27
Net realized and unrealized gains (losses)		3.49			(0.97	)

Total from investment operations		3.57			(0.70	)
Less distributions:
Distributions from net investment income		(0.23	)		—

Net asset value at end of period		27.64			24.30

Total return (%)		14.70	²		(2.80	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.25	³		0.30	^3,4
Gross operating expenses		0.25	³		0.30	³
Net investment income (loss)		0.99	³		2.94	³
Portfolio turnover rate⁵		3	²		23	²
Net assets, end of period ($ x 1,000)		309,621			148,222

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended August 31, 2010 is a blended rate.

⁵ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

50 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings as of February 28, 2011 (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				($)		($)

	91	.6%	Common Stock		264,447,298		283,691,221
	8	.3%	Preferred Stock		24,243,113		25,681,765
	0	.2%	Other Investment Company		556,458		556,459


	100	.1%	Total Investments		289,246,869		309,929,445
	0	.1%	Collateral Invested for Securities on Loan		295,650		295,650
	(0	.2)%	Other Assets and Liabilities, Net				(604,511	)


	100	.0%	Net Assets				309,620,584


	Number		Value
Security	of Shares		($)

Common Stock 91.6% of net assets

Brazil 11.0%


Banks 1.7%
Banco Bradesco S.A. ADR		157,920		3,092,074
Banco do Brasil S.A.		78,400		1,406,585
Banco Santander Brasil S.A. ADR		62,496		761,201

				5,259,860


Capital Goods 0.3%
Embraer SA ADR		16,800		572,208
Weg S.A.		33,600		406,272

				978,480


Consumer Durables & Apparel 0.3%
Cyrela Brazil Realty S.A.		22,400		223,568
MRV Engenharia e Participacoes S.A.		22,400		178,449
PDG Realty S.A. Empreendimentos e Participacoes		89,600		491,173

				893,190


Diversified Financials 0.4%
BM&F BOVESPA S.A.		168,000		1,145,869


Energy 2.2%
OGX Petroleo e Gas Participacoes S.A. *		39,200		459,800
Petroleo Brasileiro S.A. ADR		152,320		6,066,906
Ultrapar Participacoes S.A. ADR		25,088		401,157

				6,927,863


Food, Beverage & Tobacco 0.8%
BRF - Brasil Foods S.A. ADR *		70,448		1,254,679
Companhia de Bebidas das Americas ADR		11,200		257,040
Cosan S.A. Industria e Comercio		11,200		175,544
JBS S.A.		44,800		168,588
Souza Cruz S.A.		11,200		538,994

				2,394,845


Household & Personal Products 0.4%
Hypermarcas S.A. *		11,200		128,332
Natura Cosmeticos S.A.		44,800		1,140,398

				1,268,730


Materials 2.6%
Braskem S.A. ADR *		11,200		273,056
Companhia Siderurgica Nacional S.A. ADR		91,097		1,482,148
Duratex S.A. *		22,400		225,594
Fibria Celulose S.A. ADR *		11,200		161,392
Gerdau S.A.		11,200		115,161
Gerdau S.A. ADR		59,136		798,336
MMX Mineracao e Metalicos S.A. *		22,400		131,709
Usinas Siderurgicas de Minas Gerais S.A.		22,400		362,301
Vale S.A. ADR		130,256		4,458,663

				8,008,360


Retailing 0.1%
Lojas Renner S.A.		11,200		344,470


Software & Services 0.3%
Cielo S.A.		44,800		354,736
Redecard S.A.		44,800		580,871

				935,607


Telecommunication Services 0.5%
Brasil Telecom S.A. ADR *		10,192		234,926
Tele Norte Leste Participacoes S.A. ADR		22,400		353,696
Tim Participacoes S.A. *		33,600		155,011
Tim Participacoes S.A. ADR		13,440		520,397
Vivo Participacoes S.A. ADR		11,200		412,272

				1,676,302


Transportation 0.6%
All America Latina Logistica S.A.		56,000		465,710
CCR SA		33,600		940,200
LLX Logistica S.A. *		22,400		61,329
PortX Operacoes Portuarias SA *		22,400		52,279
TAM S.A. ADR		7,952		170,411

				1,689,929


Utilities 0.8%
Centrais Eletricas Brasileiras S.A. ADR		22,400		319,872
Companhia de Saneamento Basico do Estado de Sao Paulo ADR *		4,480		223,731
Companhia Energetica de Minas Gerais ADR		36,960		623,146
Companhia Paranaense de Energia ADR		11,200		285,824
CPFL Energia S.A. ADR		3,696		292,834
EDP - Energias do Brasil S.A.		11,200		251,598
Light S.A.		11,200		184,393
Tractebel Energia S.A.		22,400		351,224

				2,532,622

				34,056,127

See financial notes 51

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Chile 1.9%


Banks 0.2%
Banco de Chile ADR (a)		3,390		281,370
Banco Santander Chile ADR		3,390		281,879
Corpbanca S.A.		14,129,248		210,893

				774,142


Capital Goods 0.2%
Empresas Copec S.A.		41,664		697,971


Food & Staples Retailing 0.2%
Cencosud S.A.		69,328		471,550


Materials 0.5%
Cap S.A.		10,976		525,355
Empresas CMPC S.A.		8,512		379,703
Sociedad Quimica y Minera de Chile S.A. ADR		11,984		635,032

				1,540,090


Retailing 0.3%
S.A.C.I. Falabella S.A.		80,976		785,196


Transportation 0.1%
Lan Airlines S.A. ADR (a)		11,200		303,632


Utilities 0.4%
Colbun S.A.		1,026,256		256,375
Empresa Nacional de Electricidad S.A. ADR		12,235		638,545
Enersis S.A. ADR		22,400		454,944

				1,349,864

				5,922,445

China 16.6%


Automobiles & Components 0.2%
Dongfeng Motor Group Co., Ltd., H Shares		224,000		388,232
Great Wall Motor Co., Ltd., H Shares		139,250		216,675
Guangzhou Automobile Group Co., Ltd., H Shares		115,662		149,382

				754,289


Banks 4.5%
Agricultural Bank of China Ltd., H Shares *		672,000		333,017
Bank of China Ltd., H Shares		5,264,000		2,764,070
Bank of Communications Co., Ltd., H Shares		672,000		649,642
China CITIC Bank Corp., Ltd., H Shares		784,000		514,336
China Construction Bank Corp., H Shares		5,488,000		4,791,075
China Merchants Bank Co., Ltd., H Shares		280,000		670,779
China Minsheng Banking Corp., Ltd., H Shares		672,100		585,887
Industrial & Commercial Bank of China Ltd., H Shares		4,816,000		3,691,227

				14,000,033


Capital Goods 1.0%
Beijing Enterprises Holdings Ltd.		56,000		310,226
China Communications Construction Co., Ltd., H Shares		448,000		334,167
China International Marine Containers (Group) Co., Ltd., B Shares		190,400		415,063
China National Materials Co., Ltd., H Shares		224,000		190,953
China Railway Construction Corp., Ltd., H Shares		280,000		312,024
China Railway Group Ltd., H Shares		448,000		284,704
Citic Pacific Ltd.		112,000		292,612
CSR Corp., Ltd., H Shares		224,000		248,469
Metallurgical Corp. of China Ltd., H Shares *		112,000		45,294
Shanghai Industrial Holdings Ltd.		112,000		399,736
Shanghai Zhenhua Heavy Industry Co., Ltd., B Shares *		190,400		130,805

				2,964,053


Energy 3.5%
China Coal Energy Co., H Shares		336,000		477,957
China Oilfield Services Ltd., H Shares		224,000		446,323
China Petroleum & Chemical Corp., H Shares		1,792,000		1,822,104
China Shenhua Energy Co., Ltd., H Shares		224,000		927,444
CNOOC Ltd.		1,344,000		3,043,742
Inner Mongolia Yitai Coal Co., Ltd., B Shares		89,600		615,821
Kunlun Energy Co., Ltd.		224,000		332,442
PetroChina Co., Ltd., H Shares		1,792,000		2,438,674
Yanzhou Coal Mining Co., Ltd., H Shares		224,000		668,622

				10,773,129


Food, Beverage & Tobacco 0.0%
China Agri-Industries Holdings Ltd.		112,000		113,594


Health Care Equipment & Services 0.1%
Sinopharm Group Co., H Shares		89,600		326,115


Insurance 1.8%
China Life Insurance Co., Ltd., H Shares		672,000		2,558,020
China Pacific Insurance (Group) Co., Ltd., H Shares		89,600		364,651
China Taiping Insurance Holdings Co., Ltd. *		112,000		305,553
PICC Property & Casualty Co., Ltd., H Shares *		448,000		563,656
Ping An Insurance (Group) Co., of China Ltd., H Shares		168,000		1,722,242

				5,514,122


Materials 0.8%
Angang Steel Co., Ltd., H Shares		224,000		308,285
Anhui Conch Cement Co., Ltd., H Shares		24,000		114,621
BBMG Corp., H Shares		112,000		149,541
China Bluechemical Ltd., H Shares		448,000		346,821
China National Building Material Co., Ltd., H Shares		224,000		549,852
Jiangxi Copper Co., Ltd., H Shares		112,000		352,285
Sinofert Holdings Ltd. *		448,000		238,691

52 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Zijin Mining Group Co., Ltd., H Shares		448,000		366,952

				2,427,048


Real Estate 0.6%
China Overseas Land & Investment Ltd.		448,000		744,256
China Resources Land Ltd.		224,000		364,076
China Vanke Co., Ltd., B Shares		235,200		275,084
Guangzhou R&F Properties Co., Ltd., H Shares		134,400		179,105
Shenzhen Special Economic Zone Real Estate (Group) Co., Ltd., B Shares *		33,600		13,890
Sino-Ocean Land Holdings Ltd.		448,000		268,599
Yuexiu Property Co., Ltd. *		672,000		140,626

				1,985,636


Retailing 0.3%
China Resources Enterprise Ltd.		224,000		822,477


Technology Hardware & Equipment 0.2%
BYD Co., Ltd., H Shares		71,000		279,382
ZTE Corp., H Shares		67,200		310,586

				589,968


Telecommunication Services 2.4%
China Mobile Ltd.		504,000		4,723,494
China Telecom Corp., Ltd., H Shares		1,792,000		1,053,691
China Unicom (Hong Kong) Ltd.		896,000		1,495,413

				7,272,598


Transportation 0.9%
Air China Ltd., H Shares *		448,000		418,141
China COSCO Holdings Co., Ltd., H Shares *		280,000		298,004
China Merchants Holdings International Co., Ltd.		224,000		947,574
China Shipping Container Lines Co., Ltd., H Shares *		560,000		243,005
China Shipping Development Co., Ltd., H Shares		224,000		244,730
Cosco Pacific Ltd.		224,000		431,369
Jiangsu Expressway Co., Ltd., H Shares		96,000		104,515
Zhejiang Expressway Co., Ltd., H Shares		224,000		201,306

				2,888,644


Utilities 0.3%
China Longyuan Power Group Corp., H Shares *		224,000		201,306
China Resources Power Holdings Co., Ltd.		224,000		373,278
Datang International Power Generation Co., Ltd., H Shares		672,000		228,626

				803,210

				51,234,916

Colombia 0.7%


Banks 0.2%
Bancolombia S.A. ADR		11,200		637,616


Diversified Financials 0.1%
Corporacion Financiera Colombiana S.A.		13,332		239,679


Energy 0.4%
Ecopetrol S.A. ADR		29,680		1,242,405

				2,119,700

Czech Republic 0.5%


Banks 0.1%
Komercni Banka A/S		1,456		350,533


Materials 0.0%
Unipetrol A/S *		11,200		111,028


Telecommunication Services 0.1%
Telefonica O2 Czech Republic A/S		6,048		137,041


Utilities 0.3%
CEZ A/S		22,400		1,027,805

				1,626,407

Egypt 0.5%


Banks 0.2%
Commercial International Bank GDR		90,720		531,619


Capital Goods 0.2%
Orascom Construction Industries GDR		17,808		609,034


Telecommunication Services 0.1%
Orascom Telecom Holding SAE GDR - Reg’d *		100,028		307,586

				1,448,239

Hungary 0.5%


Banks 0.2%
OTP Bank Nyrt. plc *		27,552		826,454


Energy 0.2%
MOL Hungarian Oil and Gas Nyrt. *		5,040		611,921


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Richter Gedeon Nyrt.		1,232		238,638

				1,677,013

India 10.2%


Automobiles & Components 0.4%
Bajaj Auto Ltd.		21,280		595,172
Hero Honda Motors Ltd.		7,169		230,948
Mahindra & Mahindra Ltd.		20,832		281,196

				1,107,316


Banks 1.8%
Axis Bank Ltd.		28,896		773,709
Bank of Baroda		8,456		162,358
Canara Bank Ltd.		29,792		404,774
HDFC Bank Ltd.		18,928		856,872
Housing Development Finance Corp., Ltd.		95,200		1,327,626
ICICI Bank Ltd.		49,504		1,064,120
Oriental Bank of Commerce		30,016		215,513
State Bank of India		12,880		752,085

See financial notes 53

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Union Bank of India Ltd.		22,514		156,178

				5,713,235


Capital Goods 1.0%
Adani Enterprises Ltd.		18,592		250,652
Bharat Heavy Electricals Ltd.		12,544		556,464
Crompton Greaves Ltd.		34,617		186,985
Jaiprakash Associates Ltd.		29,904		50,704
Larsen & Toubro Ltd.		38,416		1,293,405
Siemens India Ltd.		16,464		308,802
Tata Motors Ltd.		14,784		352,641

				2,999,653


Diversified Financials 0.3%
Bajaj Holdings & Investment Ltd.		12,880		218,788
Infrastructure Development Finance Co., Ltd.		104,832		336,741
Kotak Mahindra Bank Ltd.		28,224		251,905
Reliance Capital Ltd.		11,200		117,419

				924,853


Energy 1.7%
Bharat Petroleum Corp., Ltd.		16,464		202,595
Cairn India Ltd. *		43,456		326,412
Coal India Ltd.		39,200		282,536
Essar Oil Ltd. *		112,448		265,811
Hindustan Petroleum Corp., Ltd.		31,136		220,253
Indian Oil Corp., Ltd.		30,912		204,873
Oil & Natural Gas Corp., Ltd.		101,696		611,097
Reliance Industries Ltd.		133,952		2,845,944
The Great Eastern Shipping Co., Ltd.		37,856		213,680

				5,173,201


Food, Beverage & Tobacco 0.7%
ITC Ltd.		477,792		1,788,619
Nestle India Ltd.		2,912		227,415
United Spirits Ltd.		7,168		174,192

				2,190,226


Household & Personal Products 0.1%
Colgate-Palmolive (India) Ltd.		8,960		162,216
Hindustan Unilever Ltd.		43,008		267,464

				429,680


Materials 1.2%
Hindalco Industries Ltd.		145,040		646,296
Jindal Steel & Power Ltd.		38,416		557,717
JSW Steel Ltd.		12,992		249,751
NMDC Ltd.		33,600		197,265
Sesa Goa Ltd.		38,640		224,763
Steel Authority of India Ltd.		58,128		194,680
Sterlite Industries (India) Ltd. ADR		50,064		737,944
Tata Chemicals Ltd.		30,016		215,878
Tata Steel Ltd.		46,816		629,454

				3,653,748


Media 0.1%
Zee Entertainment Enterprises Ltd.		58,688		154,289


Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Cipla Ltd.		58,464		387,220
Dr. Reddys Laboratories Ltd.		9,184		313,674
Lupin Ltd.		34,720		291,628
Piramal Healthcare Ltd.		21,616		219,193
Sun Pharmaceutical Industries Ltd.		31,920		298,503

				1,510,218


Real Estate 0.1%
DLF Ltd.		44,464		207,364
Unitech Ltd.		163,744		122,089

				329,453


Software & Services 1.4%
HCL Technologies Ltd.		21,952		214,476
Infosys Technologies Ltd.		44,352		2,942,282
Mphasis Ltd.		12,432		118,923
Tata Consultancy Services Ltd.		27,328		671,171
Wipro Ltd. ADR		35,420		466,127

				4,412,979


Telecommunication Services 0.4%
Bharti Airtel Ltd.		136,640		999,179
Idea Cellular Ltd. *		148,288		188,370
Reliance Communications Ltd.		84,000		159,129

				1,346,678


Utilities 0.5%
Adani Power Ltd. *		55,552		146,351
GAIL India Ltd.		37,184		350,769
GMR Infrastructure Ltd. *		136,080		123,559
NTPC Ltd.		80,976		303,582
Power Grid Corp. of India Ltd.		62,832		136,241
Reliance Infrastructure Ltd.		12,768		170,724
Reliance Power Ltd. *		62,496		152,219
Tata Power Co., Ltd.		11,200		282,802

				1,666,247

				31,611,776

Indonesia 2.5%


Automobiles & Components 0.5%
PT Astra International Tbk		280,000		1,652,100


Banks 0.6%
PT Bank Central Asia Tbk		1,064,000		759,871
PT Bank Mandiri Tbk		728,459		478,950
PT Bank Negara Indonesia (Persero) Tbk		199,816		80,411
PT Bank Rakyat Indonesia (Persero) Tbk		1,120,000		596,724

				1,915,956


Capital Goods 0.2%
PT United Tractors Tbk		224,000		589,106


Energy 0.3%
PT Adaro Energy Tbk		784,000		217,741
PT Bumi Resources Tbk		1,512,000		514,198
PT Tambang Batubara Bukit Asam Tbk		112,000		254,560

				986,499


Food, Beverage & Tobacco 0.2%
PT Astra Agro Lestari Tbk		50,400		124,836
PT Gudang Garam Tbk		42,560		176,338
PT Indofood Sukses Makmur Tbk		415,400		223,675

				524,849


Household & Personal Products 0.1%
PT Unilever Indonesia Tbk		168,000		308,519

54 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Materials 0.2%
PT Aneka Tambang Tbk		392,000		97,761
PT Indocement Tunggal Prakarsa Tbk		168,000		274,239
PT International Nickel Indonesia Tbk		280,000		160,291
PT Semen Gresik (Persero) Tbk		224,000		219,645

				751,936


Telecommunication Services 0.3%
PT Telekomunikasi Indonesia Tbk		896,000		756,697


Utilities 0.1%
PT Perusahaan Gas Negara		896,000		360,574

				7,846,236

Malaysia 4.1%


Automobiles & Components 0.1%
UMW Holdings Berhad		105,600		252,360


Banks 1.3%
Alliance Financial Group Berhad		182,600		187,359
CIMB Group Holdings Berhad		453,200		1,197,441
Hong Leong Bank Berhad		61,600		187,799
Malayan Banking Berhad		431,200		1,218,470
Public Bank Berhad - Foreign Market		293,341		1,257,794
RHB Capital Berhad		61,600		158,720

				4,207,583


Capital Goods 0.5%
Gamuda Berhad		248,600		295,826
IJM Corp. Berhad		120,500		238,985
Sime Darby Berhad		369,600		1,085,598

				1,620,409


Consumer Services 0.4%
Berjaya Sports Toto Berhad		105,600		141,931
Genting Berhad		237,600		778,110
Genting Malaysia Berhad		303,600		329,426

				1,249,467


Diversified Financials 0.1%
AMMB Holdings Berhad		226,600		461,297


Food, Beverage & Tobacco 0.5%
British American Tobacco Malaysia Berhad		6,600		103,852
IOI Corp. Berhad		409,200		736,439
Kuala Lumpur Kepong Berhad		50,600		335,066
PPB Group Berhad		50,600		273,693

				1,449,050


Materials 0.1%
Petronas Chemicals Group Berhad *		112,000		231,306


Real Estate 0.1%
SP Setia Berhad		127,600		247,211


Telecommunication Services 0.5%
Axiata Group Berhad *		552,200		883,375
Digi.com Berhad		28,600		249,389
Maxis Berhad		193,600		344,615

				1,477,379


Transportation 0.2%
MISC Berhad		150,160		374,108
PLUS Expressways Berhad		215,600		311,685

				685,793


Utilities 0.3%
Petronas Gas Berhad		61,600		227,782
Tenaga Nasional Berhad		118,250		244,214
YTL Corp. Berhad		105,600		245,782
YTL Power International Berhad		259,600		193,179

				910,957

				12,792,812

Mexico 5.7%


Banks 0.5%
Grupo Financiero Banorte S.A.B. de C.V., O Shares		179,200		813,098
Grupo Financiero Inbursa S.A.B. de C.V., O Shares		134,400		564,059

				1,377,157


Capital Goods 0.3%
Alfa S.A.B., A Shares		33,600		418,185
Grupo Carso S.A.B. de C.V., Series A1		100,800		324,073

				742,258


Diversified Financials 0.0%
Inmuebles Carso SAB de C.V., Series B1 *		100,800		106,636


Food & Staples Retailing 0.5%
Wal-Mart de Mexico S.A.B. de C.V., Series V		560,000		1,605,091


Food, Beverage & Tobacco 0.5%
Fomento Economico Mexicano S.A.B. de C.V.		179,200		1,007,708
Grupo Bimbo S.A.B. de C.V., Series A		33,600		261,036
Grupo Modelo S.A.B. de C.V., Series C		56,000		338,791

				1,607,535


Household & Personal Products 0.1%
Kimberly-Clark de Mexico S.A.B. de C.V., A Shares		44,800		260,999


Materials 1.5%
Cemex S.A.B. de C.V., Series CPO *		884,972		795,045
Grupo Mexico S.A.B. de C.V., Series B		716,800		2,732,246
Industrias Penoles S.A.B. de C.V.		14,000		487,128
Mexichem S.A.B. de C.V.		78,400		282,446
Minera Frisco SAB de C.V., Series A1 *		100,800		426,543

				4,723,408


Media 0.4%
Grupo Televisa S.A., Series CPO *		246,400		1,167,088


Telecommunication Services 1.8%
America Movil S.A.B. de C.V., Series L		1,713,600		4,918,660
Telefonos de Mexico S.A.B. de C.V., L Series		851,200		773,850

				5,692,510

See financial notes 55

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Transportation 0.1%
Grupo Aeroportuario del Pacifico S.A.B. de C.V., B Shares		78,400		297,284

				17,579,966

Morocco 0.1%


Telecommunication Services 0.1%
Maroc Telecom		20,608		408,740

Pakistan 0.0%


Energy 0.0%
Oil & Gas Development Co., Ltd. GDR - Reg’d		9,984		135,782

Peru 0.5%


Banks 0.2%
Credicorp Ltd.		5,712		573,770


Materials 0.3%
Companhia de Minas Buenaventura S.A. ADR		21,616		1,008,819

				1,582,589

Philippines 0.4%


Banks 0.1%
Bank of the Philippine Islands		193,999		247,673


Capital Goods 0.1%
SM Investments Corp.		24,640		260,588


Real Estate 0.0%
Ayala Land, Inc.		672,000		220,454


Telecommunication Services 0.1%
Philippine Long Distance Telephone Co.		4,480		221,996


Utilities 0.1%
Manila Electric Co.		44,800		237,412

				1,188,123

Poland 1.5%


Banks 0.6%
Bank Handlowy w Warszawie S.A.		4,816		156,889
Bank Pekao S.A.		10,080		577,375
Bank Zachodni WBK S.A.		2,128		167,117
Getin Holding S.A. *		56,336		256,738
Powszechna Kasa Oszczednosci Bank Polski S.A.		50,064		732,431

				1,890,550


Energy 0.1%
Polski Koncern Naftowy Orlen S.A. *		22,736		361,222


Insurance 0.1%
Powszechny Zaklad Ubezpieczen S.A.		3,360		406,691


Materials 0.3%
KGHM Polska Miedz S.A.		12,768		780,720


Telecommunication Services 0.1%
Telekomunikacja Polska S.A.		54,096		325,878


Utilities 0.3%
Polska Grupa Energetyczna S.A.		102,368		807,488

				4,572,549

Russia 9.4%


Banks 1.0%
Sberbank GDR - Reg’d		6,944		2,685,495
VTB Bank OJSC GDR - Reg’d		86,128		596,867

				3,282,362


Consumer Durables & Apparel 0.1%
PIK Group GDR - Reg’d *(b)		49,280		219,789


Energy 6.2%
Gazprom ADR		202,608		5,960,728
Gazprom Neft JSC ADR		25,200		682,668
LUKOIL ADR		55,888		3,954,076
NovaTek OAO GDR - Reg’d		17,248		2,240,515
Rosneft Oil Co. GDR - Reg’d		169,904		1,603,894
Surgutneftegas ADR		301,952		3,508,682
Tatneft ADR		24,976		1,042,748
TMK OAO GDR - Reg’d *		8,736		174,720

				19,168,031


Materials 1.5%
Magnitogorsk Iron & Steel Works GDR - Reg’d		17,360		250,852
Mining & Metallurgical Co., Norilsk Nickel ADR		68,320		1,649,928
Novolipetsk Steel GDR - Reg’d		16,016		735,134
Polymetal GDR - Reg’d *		14,224		268,407
Polyus Gold Co. ADR		14,000		470,680
Severstal GDR - Reg’d		25,088		478,428
Uralkali GDR - Reg’d		20,048		819,362

				4,672,791


Telecommunication Services 0.3%
Mobile TeleSystems ADR		17,360		326,889
Rostelecom ADR		11,200		356,720
Sistema JSFC GDR - Reg’d		12,208		311,182

				994,791


Utilities 0.3%
Federal Hydrogenerating Co. ADR *		167,104		855,572

				29,193,336

South Africa 9.6%


Banks 0.9%
ABSA Group Ltd.		30,688		573,820
Nedbank Group Ltd.		21,840		402,238
Standard Bank Group Ltd.		134,960		1,942,018

				2,918,076


Capital Goods 0.4%
Aveng Ltd.		44,128		232,626
Barloworld Ltd.		25,424		264,717
Bidvest Group Ltd.		29,568		664,774
Reunert Ltd.		19,264		160,463

				1,322,580


Consumer Durables & Apparel 0.2%
Steinhoff International Holdings Ltd. *		144,704		516,335

56 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Consumer Services 0.1%
Sun International Ltd.		11,760		166,086


Diversified Financials 0.9%
African Bank Investments Ltd.		76,832		396,392
FirstRand Ltd.		363,328		1,025,731
Investec Ltd.		28,336		221,737
Remgro Ltd.		43,120		695,669
RMB Holdings Ltd.		82,096		454,784

				2,794,313


Energy 0.9%
Sasol Ltd.		48,720		2,674,841


Food & Staples Retailing 0.5%
Massmart Holdings Ltd.		18,144		376,526
Pick n Pay Stores Ltd.		23,744		158,908
Shoprite Holdings Ltd.		46,032		639,495
The Spar Group Ltd.		19,936		272,908

				1,447,837


Food, Beverage & Tobacco 0.2%
AVI Ltd.		43,568		190,244
Tiger Brands Ltd.		14,112		370,948
Tongaat Hulett Ltd.		12,880		192,855

				754,047


Health Care Equipment & Services 0.1%
Netcare Ltd.		124,432		261,630


Insurance 0.4%
Discovery Holdings Ltd.		36,064		205,292
MMI Holdings Ltd.		136,126		318,782
Sanlam Ltd.		186,480		726,942

				1,251,016


Materials 2.5%
AECI Ltd.		13,664		165,704
African Rainbow Minerals Ltd.		8,064		245,439
Anglo Platinum Ltd. *		8,736		852,317
AngloGold Ashanti Ltd.		31,248		1,528,795
ArcelorMittal South Africa Ltd.		14,112		183,379
Exxaro Resources Ltd.		7,504		164,862
Gold Fields Ltd.		64,736		1,164,195
Harmony Gold Mining Co., Ltd.		45,360		530,994
Impala Platinum Holdings Ltd.		53,760		1,592,103
Kumba Iron Ore Ltd.		8,064		547,346
Nampak Ltd.		72,016		234,344
Pretoria Portland Cement Co., Ltd.		52,752		211,493
Sappi Ltd. *		56,784		302,453

				7,723,424


Media 0.6%
Naspers Ltd., N Shares		33,712		1,943,078


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Adcock Ingram Holdings Ltd.		17,584		148,496
Aspen Pharmacare Holdings Ltd. *		36,736		431,469

				579,965


Real Estate 0.2%
Fountainhead Property Trust		193,760		178,708
Growthpoint Properties Ltd.		177,856		434,961

				613,669


Retailing 0.5%
Imperial Holdings Ltd.		20,054		324,809
Mr. Price Group Ltd.		30,576		264,162
The Foschini Group Ltd.		24,752		280,157
Truworths International Ltd.		40,880		375,629
Woolworths Holdings Ltd.		77,392		297,788

				1,542,545


Telecommunication Services 1.0%
MTN Group Ltd.		143,136		2,535,133
Telkom South Africa Ltd.		38,976		199,119
Vodacom Group (Pty) Ltd.		37,408		403,782

				3,138,034

				29,647,476

Taiwan 12.7%


Automobiles & Components 0.1%
Cheng Shin Rubber Industry Co., Ltd.		125,500		251,869
Yulon Motor Co., Ltd.		112,000		219,881

				471,750


Banks 1.3%
Chang Hwa Commercial Bank		448,000		329,069
China Development Financial Holding Corp.		1,238,710		474,713
Chinatrust Financial Holding Co., Ltd.		927,232		723,158
E.Sun Financial Holding Co., Ltd.		457,703		280,035
First Financial Holding Co., Ltd.		567,625		460,824
Hua Nan Financial Holdings Co., Ltd.		576,775		407,176
Mega Financial Holding Co., Ltd.		784,000		565,328
SinoPac Financial Holdings Co., Ltd.		784,000		322,856
Taiwan Cooperative Bank		590,500		444,657

				4,007,816


Capital Goods 0.3%
Far Eastern New Century Corp.		339,660		525,813
Taiwan Glass Industrial Corp.		112,000		135,731
Walsin Lihwa Corp. *		448,000		237,200

				898,744


Consumer Durables & Apparel 0.2%
Giant Manufacturing Co. Ltd.		20,000		74,965
Pou Chen Corp.		338,580		295,363
Tatung Co., Ltd. *		726,000		168,644

				538,972


Diversified Financials 0.5%
Capital Securities Corp.		348,600		158,790
Fubon Financial Holding Co., Ltd.		575,233		726,124
KGI Securities Co., Ltd.		224,000		107,305
Polaris Securities Co., Ltd.		336,000		206,138
Yuanta Financial Holding Co., Ltd.		672,000		457,458

				1,655,815


Energy 0.1%
Formosa Petrochemical Corp.		112,000		337,728


Food, Beverage & Tobacco 0.1%
Uni-President Enterprises Corp.		354,300		449,619


Insurance 0.4%
Cathay Financial Holding Co., Ltd.		570,800		909,535

See financial notes 57

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Shin Kong Financial Holding Co., Ltd. *		697,151		291,778

				1,201,313


Materials 2.1%
Asia Cement Corp.		227,660		228,448
China Steel Corp.		907,352		1,021,827
Formosa Chemicals & Fibre Corp.		336,000		1,140,821
Formosa Plastics Corp.		560,000		1,873,130
Nan Ya Plastics Corp.		560,000		1,613,339
Taiwan Cement Corp.		241,690		238,871
Taiwan Fertilizer Co., Ltd.		112,000		347,141

				6,463,577


Real Estate 0.0%
Cathay Real Estate Development Co. Ltd.		112,000		55,159


Semiconductors & Semiconductor Equipment 2.9%
Advanced Semiconductor Engineering, Inc.		465,183		520,745
Epistar Corp.		50,000		170,605
Macronix International Co., Ltd.		336,000		242,848
MediaTek, Inc.		112,099		1,258,650
MStar Semiconductor, Inc. *		35,000		314,738
Novatek Microelectronics Corp.		15,000		45,786
Siliconware Precision Industries Co. ADR		71,344		484,426
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		440,048		5,408,190
United Microelectronics Corp. ADR		214,032		599,289

				9,045,277


Technology Hardware & Equipment 4.0%
Acer, Inc.		224,086		540,874
Asustek Computer, Inc.		40,800		368,952
AU Optronics Corp. ADR *		78,400		704,032
Chicony Electronics Co., Ltd.		114,150		214,509
Chimei Innolux Corp. *		572,902		608,589
Chunghwa Picture Tubes Ltd. *		1,232,000		165,250
Compal Communications, Inc.		112,000		106,364
Compal Electronics, Inc.		339,610		396,727
Delta Electronics, Inc.		112,000		464,988
Foxconn Technology Co., Ltd.		120,540		429,530
HannStar Display Corp. *		784,000		141,530
Hon Hai Precision Industry Co., Ltd.		784,240		2,873,640
HTC Corp.		85,000		3,043,164
Inventec Co., Ltd.		342,450		176,135
Largan Precision Co., Ltd.		4,000		109,053
Lite-On Technology Corp.		171,609		213,451
Pegatron Corp. *		138,441		162,888
Quanta Computer, Inc.		224,000		437,503
Synnex Technology International Corp.		118,053		278,593
Unimicron Technology Corp.		224,000		414,159
Wistron Corp.		229,034		407,298

				12,257,229


Telecommunication Services 0.6%
Chunghwa Telecom Co. Ltd. ADR		32,480		958,485
Far EasTone Telecommunications Co., Ltd.		224,000		320,032
Taiwan Mobile Co., Ltd.		224,000		500,757

				1,779,274


Transportation 0.1%
China Airlines Ltd. *		112,000		72,666
Evergreen Marine Corp. *		112,000		98,645

				171,311

				39,333,584

Thailand 1.8%


Banks 0.7%
Bangkok Bank Public Co., Ltd. NVDR		89,600		468,880
Bank of Ayudhya Public Co., Ltd. NVDR		425,600		343,821
Kasikornbank Public Co., Ltd. NVDR		134,400		516,500
Krung Thai Bank Public Co., Ltd. NVDR		537,600		288,361
Siam Commercial Bank Public Co., Ltd. NVDR		168,000		560,458

				2,178,020


Energy 0.7%
Banpu Public Co., Ltd. NVDR		11,200		265,943
IRPC PCL NVDR		1,355,200		245,997
PTT Aromatics & Refining PCL NVDR		235,200		284,625
PTT Exploration & Production Public Co., Ltd. NVDR		100,800		600,020
PTT PCL NVDR		67,200		740,683

				2,137,268


Food & Staples Retailing 0.1%
CP ALL PCL NVDR		257,600		328,582


Food, Beverage & Tobacco 0.1%
Charoen Pokphand Foods Public Co., Ltd. NVDR		347,200		270,265


Materials 0.1%
The Siam Cement Public Co., Ltd. NVDR		33,600		341,769


Telecommunication Services 0.1%
Advanced Info Service Public Co., Ltd. NVDR		100,800		262,097

				5,518,001

Turkey 1.4%


Banks 0.7%
Akbank T.A.S.		134,326		627,896
Asya Katilim Bankasi A/S		95,648		154,213
Turkiye Garanti Bankasi A/S		107,632		476,212
Turkiye Halk Bankasi A/S		42,224		306,086
Turkiye Is Bankasi, C Shares		135,072		420,359
Yapi ve Kredi Bankasi A/S *		87,024		242,549

				2,227,315


Capital Goods 0.1%
Dogan Sirketler Grubu Holdings A/S *		13,328		9,828
Enka Insaat ve Sanayi A/S		16,800		55,433
Koc Holding A/S		98,784		413,607

				478,868

58 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Diversified Financials 0.1%
Haci Omer Sabanci Holding A/S		61,936		248,487


Energy 0.1%
Tupras-Turkiye Petrol Rafinerileri A/S		10,528		261,851


Food & Staples Retailing 0.1%
BIM Birlesik Magazalar A/S		8,064		253,480


Food, Beverage & Tobacco 0.1%
Anadolu Efes Biracilik ve Malt Sanayii A/S		21,056		284,220


Materials 0.1%
Eregli Demir ve Celik Fabrikalari TAS (Erdemir) *		84,000		259,318


Transportation 0.1%
Turk Hava Yollari Anonim Ortakligi (THY) *		64,960		181,865

				4,195,404

Total Common Stock
(Cost $264,447,298)				283,691,221




Preferred Stock 8.3% of net assets

Brazil 8.3%


Banks 1.9%
Itau Unibanco Holding S.A. ADR		180,544		4,011,688
Itausa - Investimentos Itau S.A.		235,200		1,721,944

				5,733,632


Energy 2.7%
Petroleo Brasileiro S.A. ADR		235,760		8,291,679


Food & Staples Retailing 0.1%
Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR		11,200		422,352


Food, Beverage & Tobacco 0.9%
Companhia de Bebidas das Americas ADR		105,280		2,843,613


Materials 2.3%
Bradespar S.A.		22,400		583,302
Klabin S.A.		56,000		208,033
Metalurgica Gerdau S.A.		22,400		349,063
Suzano Papel e Celulose S.A.		24,350		208,668
Usinas Siderurgicas de Minas Gerais S.A., A Shares		44,800		513,328
Vale S.A. ADR		173,600		5,202,792

				7,065,186


Retailing 0.1%
Lojas Americanas S.A.		33,600		271,523


Utilities 0.3%
AES Tiete S.A.		11,200		155,349
Centrais Eletricas Brasileiras S.A. ADR		22,400		404,992
Cia de Transmissao de Energia Electrica Paulista		3,000		92,233
Companhia Energetica de Sao Paulo, B Shares		11,200		184,393
Eletropaulo Metropolitana S.A.		11,200		216,813

				1,053,780

Total Preferred Stock
(Cost $24,243,113)				25,681,765




Other Investment Company 0.2% of net assets

United States 0.2%
State Street Institutional Liquid Reserves Fund - Institutional Class		556,459		556,459

Total Other Investment Company
(Cost $556,458)				556,459



End of Investments



Collateral Invested for Securities on Loan 0.1% of net assets


State Street Navigator Securities Lending Prime Portfolio		295,650		295,650

Total Collateral Invested for Securities on Loan
(Cost $295,650)				295,650



End of Collateral Invested for Securities on Loan

At 2/28/11, the tax basis cost of the fund’s investments was $289,342,748 and the unrealized appreciation and depreciation were $29,401,500 and ($8,814,803), respectively, with a net unrealized appreciation of $20,586,697.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		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

See financial notes 59

Schwab Emerging Markets Equity ETF

Statement of

Assets and Liabilities

As of February 28, 2011 (unaudited)



Assets

Investments, at value including securities on loan of $288,931 (cost $289,246,869)		$309,929,445
Collateral invested for securities on loan		295,650
Foreign currency, at value (cost $80,414)		80,431
Receivables:
Investments sold		458
Dividends		184,984
Foreign tax reclaims		845
Income from securities on loan		441
Interest	+	199

Total assets		310,492,453

Liabilities

Collateral held for securities on loan		295,650
Payables:
Investments bought		459,976
Investment adviser fees		6,257
Foreign capital gain tax	+	109,986

Total liabilities		871,869

Net Assets

Total assets		310,492,453
Total liabilities	−	871,869

Net assets		$309,620,584

Net Assets by Source
Capital received from investors		291,083,423
Distributions in excess of net investment income		(261,034	)
Net realized capital losses		(1,776,250	)
Net unrealized capital gains		20,574,445

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$309,620,584

11,200,001

$27.64

60 See financial notes

Schwab Emerging Markets Equity ETF

Statement of

Operations

For September 1, 2010 through February 28, 2011 (unaudited)



Investment Income

Dividends (net of foreign withholding tax of $152,926)			$1,506,883
Interest			1,209
Securities on loan	+		441

Total investment income			1,508,533

Expenses

Investment adviser fees			304,523

Total expenses	−		304,523

Net investment income			1,204,010

Realized and Unrealized Gains (Losses)

Net realized losses on investments			(626,515	)
Net realized losses on foreign currency transactions*	+		(269,413	)

Net realized losses			(895,928	)
Net unrealized gains on investments (net of foreign capital gain tax of $109,986)			22,271,396
Net unrealized gains on foreign currency translations	+		1,541

Net unrealized gains	+	��	22,272,937

Net realized and unrealized gains			21,377,009

Net increase in net assets resulting from operations			$22,581,019


*		Includes foreign currency acquisition costs on Brazilian Real of $263,255

See financial notes 61

Schwab Emerging Markets Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.



Operations


9/1/10-2/28/11				*1/13/10-8/31/10**
Net investment income		$1,204,010			$1,618,717
Net realized losses		(895,928	)		(1,728,783	)
Net unrealized gains (losses)	+	22,272,937			(1,698,492	)

Net increase (decrease) in net assets resulting from operations		22,581,019			(1,808,558	)

Distributions to Shareholders

Distributions from net investment income		($2,235,300	)		($—	)

Transactions in Fund Shares

9/1/10-2/28/11

1/13/10*-8/31/10

SHARES

VALUE

SHARES

VALUE

Shares Sold

5,100,000

$141,053,260

6,100,001

$150,030,163

Shares Redeemed

—

Net transactions in fund shares

5,100,000

$141,053,260

6,100,001

$150,030,163

Shares Outstanding and Net Assets

9/1/10-2/28/11

1/13/10*-8/31/10

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

6,100,001

$148,221,605

—

$—

Total increase

5,100,000

161,398,979

6,100,001

148,221,605

End of period

11,200,001

$309,620,584

6,100,001

$148,221,605

(Distributions in excess of net investment income)/
Net investment income not yet distributed

($261,034

)

$770,256


*		Commencement of operations.

62 See financial notes

Schwab International ETFs

Financial Notes, unaudited

1. Business Structure of the Funds



Schwab Strategic Trust (organized January 27, 2009)
Schwab International Equity ETF		Schwab U.S. Mid-Cap ETF
Schwab International Small-Cap Equity ETF		Schwab U.S. Small-Cap ETF
Schwab Emerging Markets Equity ETF		Schwab U.S. REIT ETF
Schwab U.S. Broad Market ETF		Schwab U.S. TIPS ETF
Schwab U.S. Large-Cap ETF		Schwab U.S. Short-Term U.S. Treasury ETF
Schwab U.S. Large-Cap Growth ETF		Schwab U.S. Intermediate-Term U.S. Treasury ETF
Schwab U.S. Large-Cap Value 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.

	•	Forward contracts: value 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.

Schwab International ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

The three levels of the fair value hierarchy are 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 ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

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)		$565,782,975		$—		$—		$565,782,975
Preferred Stock(a)		1,483,609		—		—		1,483,609
Other Investment Company		920,973		—		—		920,973
Rights
Hong Kong(a)
Real Estate		—		—		1,868		1,868

Total		$568,187,557		$—		$1,868		$568,189,425

Other Financial Instruments
Collateral Invested for Securities on Loan		$902,696		$—		$—		$902,696

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		Realized		Unrealized			Net			Gross		Gross		as of
	August 31,		Gain		Gains			Purchases			Transfers		Transfers		February 28,
Investments in Securities	2010		(Losses)		(Losses)			(Sales)			in		out		2011

Common Stock
Singapore		$72,894		$16,038		$(13,151	)		$(75,781	)		$—		$—		$—
Rights
Hong Kong		—		—		1,868			—			—		—		1,868
Sweden		—		—		(5,494	)		5,494			—		—		—

Total		$72,894		$16,038		$(16,777	)		$(70,287	)		$—		$—		$1,868

Schwab International ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

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)		$133,976,031		$—		$—		$133,976,031
Australia(a)		7,635,812		—		—		7,635,812
Real Estate		1,006,781		—		146,704		1,153,485
China(a)		1,207,700		—		—		1,207,700
Consumer Durables & Apparel		—		—		79,994		79,994
Preferred Stock(a)		519,214		—		—		519,214
United Kingdom(a)
Software and Services		—		—		26,180		26,180
Other Investment Company		585,699		—		—		585,699
Rights		29,132		—		—		29,132
Australia(a)
Real Estate		—		—		1,014		1,014
Hong Kong(a)
Utilities		—		—		37,697		37,697

Total		$144,960,369		$—		$291,589		$145,251,958

Other Financial Instruments
Collateral Invested for Securities on Loan		$2,348,995		$—		$—		$2,348,995

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		Realized		Unrealized			Net		Gross		Gross			as of
	August 31,		Gain		Gains			Purchases		Transfers		Transfers			February 28,
Investments in Securities	2010		(Losses)		(Losses)			(Sales)		in		out			2011

Common Stock
Australia		$—		$—		$67,157			$50,991		$28,556		$—			$146,704
China		—		—		(29,825	)		58,055		51,764		—			79,994
Republic of Korea		10,710		—		8,506			66,675				(85,891	)		—
Singapore		65,328		—		(9,780	)		69,660				(125,208	)		—
Preferred Stock
United Kingdom		—		—		426			25,754		—		—			26,180
Rights
Australia		—		—		1,014			—		—		—			1,014
Hong Kong		—		—		37,697			—		—		—			37,697

Total		$76,038		$—		$75,195			$271,135		$80,320		$(211,099	)		$291,589

Schwab International ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

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)		$254,497,885		$—		$—		$254,497,885
Russia(a)		28,973,547		—		—		28,973,547
Consumer Durables & Apparel		—		—		219,789		219,789
Preferred Stock(a)		25,681,765		—		—		25,681,765
Other Investment Company		556,459		—		—		556,459

Total		$309,709,656		$—		$219,789		$309,929,445

Other Financial Instruments
Collateral Invested for Securities on Loan		$295,650		$—		$—		$295,650

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		Realized		Unrealized			Net		Gross		Gross			as of
	August 31,		Gain		Gains			Purchases		Transfers		Transfers			February 28,
Investments in Securities	2010		(Losses)		(Losses)			(Sales)		in		out			2011

Common Stock
China		$533,596		$—		$113,047			$1,075,599		$—		$(1,722,242	)		$—
Pakistan		114,709		112		(38,823	)		59,784		—		(135,782	)		—
Russia		—		—		33,098			148,810		37,881		—			$219,789

Total		$648,305		$112		$107,322			$1,284,193		$37,881		$(1,858,024	)		$219,789

All net realized and change in unrealized gains (losses) on Level 3 investments 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, 2011 are as follows:


Schwab International Equity ETF	($3,626	)
Schwab International Small-Cap Equity ETF	74,287
Schwab Emerging Markets Equity ETF	33,098

(b) Portfolio Investments:

Schwab International ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

The cash collateral of securities loaned is invested in money market portfolios registered under Rule 2a-7 of the 1940 Act. The investments of collateral are mark-to-market daily and the value of the collateral must be at least 100% of the market value of the loan securities each day. If the value of the collateral falls below 100%, it will be adjusted the following day.

(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. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the differences between the recorded amounts of dividends, interest, and foreign withholdings taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. 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, foreign currency exchanges, capital gains on investments on currency repatriation. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in 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, 2011, 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 fundsmay 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

Schwab International ETFs

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers (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.

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

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		International		Schwab
International		Small-Cap		Emerging Markets
Equity ETF		Equity ETF		Equity ETF

	0.13%		0.35%		0.25%

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

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. During the period ended February 28, 2011, there were no transactions involving affiliates.

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:

7. Purchases and Sales/Maturities of Investment Securities:

For the period ended February 28, 2011, purchases and sales/maturities of securities (excluding in-kind transactions and short-term obligations) were as follows:


	Purchases of Securities		Sales/Maturities of Securities

Schwab International Equity ETF		$16,215,411		$14,614,957
Schwab International Small-Cap Equity ETF		13,198,475		9,740,378
Schwab Emerging Markets Equity ETF		55,996,822		8,419,006

Schwab International ETFs

Financial Notes, unaudited (continued)

8. In-Kind Transactions:

The in-kind transactions for the period ended February 28, 2011 were as follows:


	In-kind Purchases		In-kind Sales

Schwab International Equity ETF		$203,348,022		$—
Schwab International Small-Cap Equity ETF		69,476,860		5,564,858
Schwab Emerging Markets Equity ETF		92,812,131		—

For period ended February 28, 2011, 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 values per share. The net realized in-kind gains or losses will be disclosed in the funds’ Statements of Operations.

9. Federal Income Taxes

Schwab

International

Schwab

International

Small-Cap

Emerging Markets

Equity ETF

Deferred capital losses

$1,532,850

$237,433

$842,882

Certain of the enacted provisions include:

Schwab International ETFs

Financial Notes, unaudited (continued)

10. Subsequent Events:

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. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Retired. Consulting Managing Director, PIMCO (investment adviser) (January 2003 – December 2008); Managing Director, PIMCO (February 1999 – December 2002); President and Trustee, PIMCO Funds and PIMCO Variable Insurance Trust (investments) (February 1994 – May 2005).	13	Independent Director and Chairman of Corporate Governance/Nominating Committee, PS Business Parks, Inc. (2005 – present). Trustee and member of Nominating/Corporate Governance Committee, PIMCO Funds (investment company consisting of 84 portfolios) (1997 – 2008). Trustee and member of Nominating/Corporate Governance Committee, PIMCO Variable Insurance Trust (investment company consisting of 16 portfolios) (1997 – 2008). Trustee and Chairman, PIMCO Strategic Global Government Fund (investment company consisting of one portfolio) (1997 – 2008). Trustee, PCIM Fund, Inc. (investment company consisting of one portfolio) (1997 – 2008).


Mark A. Goldfarb 1952 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Founder and Managing Director, SS&G Financial Services (financial services) (May 1987 – present).	13	None


Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Advisor (June 2008 – present) and Chief Executive Officer (January 1998 – January 2008), Asset International, Inc. (publisher of financial services information); Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (June 2008 – present).	13	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. and The Charles Schwab Corporation. Since October 2008, Director, The Charles Schwab Corporation. Since May 2008, Director, Charles Schwab & Co., Inc. and Schwab Holdings, Inc. Since 2006, Director, Charles Schwab Bank. 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. Until October 2008, President and Chief Operating Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation.	86	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

Marie Chandoha 1961 President and Chief Executive Officer (Officer of Schwab Strategic Trust since 2010.)		Executive Vice President, Charles Schwab & Co., Inc. (Sept. 2010 – present); Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer, (Sept. 2010 – present), Charles Schwab Investment Management, Inc.; President and Chief Executive Officer, Schwab Funds, Laudus Funds and Schwab ETFs (Dec. 2010 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – August 2010); Co-Head and Senior Portfolio Manager, Wells Capital Management (June 1999 – March 2007).


George Pereira 1964 Treasurer and Principal Financial Officer (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President and Chief Financial Officer (Nov. 2004 – present); Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present) and Schwab ETFs (Oct. 2009 – present); Director, Charles Schwab Worldwide Fund, PLC and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present); Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds (June 2006 – June 2007).


Catherine MacGregor 1964 Vice President and Assistant Secretary (Officer of Schwab Strategic Trust since 2009.)		Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk, Laudus Funds (March 2007 – present); Vice President and Assistant Clerk, Schwab Funds (Dec. 2005 – present) and Schwab ETFs (Oct. 2009 – present).


Michael Haydel 1972 Vice President (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President (March 2011 – present), Vice President (2004 – March 2011), Asset Management Client Services, Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Anti-Money Laundering Officer (Oct. 2005 – Feb. 2009), Laudus Funds; Vice President, Schwab Funds (June 2007 – present) and Schwab ETFs (Oct. 2009 – present).


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.

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.