Schwab U.S. Small-Cap ETF NCSR Certified annual shareholder report (management investment company)

Schwab U.S. Small-Cap ETF (SCHA) N-CSRCertified annual shareholder report (management investment company)

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: August 31, 2012


Item 1:		Report(s) to Shareholders.

Annual report dated August 31, 2012, 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

Schwab U.S. Dividend

Equity ETF^tm

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Schwab U.S. ETFs

Annual Report

August 31, 2012

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. Dividend

Equity ETF^tm

This page is intentionally left blank.

In This Report


Performance at a Glance		2
From the President		3
Fund Management		5
Performance and Fund Facts
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
Schwab U.S. Dividend Equity ETF™		18
Fund Expenses		20
Financial Statements and Portfolio Holdings
Schwab U.S. Broad Market ETF™		21
Schwab U.S. Large-Cap ETF™		43
Schwab U.S. Large-Cap Growth ETF™		56
Schwab U.S. Large-Cap Value ETF™		66
Schwab U.S. Mid-Cap ETF™		75
Schwab U.S. Small-Cap ETF™		85
Schwab U.S. Dividend Equity ETF™		106
Financial Notes		113
Report of Independent Registered Public Accounting Firm		123
Other Federal Tax Information		124
Other Information		125
Investment Advisory Agreement Approval		126
Trustees and Officers		128
Glossary		131
EX-99.CODEETH
EX-99.CERT
EX-99.906CERT

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

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

Performance at a Glance

The performance data 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			17.07%
Market Price Return¹			17.27%
Dow Jones U.S. Broad Stock Market Index^SM			17.13%
ETF Category: Morningstar Large Blend²			16.17%


Performance Details			pages 6-7




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


NAV Return¹			17.36%
Market Price Return¹			17.32%
Dow Jones U.S. Large-Cap Total Stock Market Index^SM			17.44%
ETF Category: Morningstar Large Blend²			16.17%


Performance Details			pages 8-9




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


NAV Return¹			16.96%
Market Price Return¹			17.06%
Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM			17.11%
ETF Category: Morningstar Large Growth²			16.19%


Performance Details			pages 10-11




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


NAV Return¹			17.53%
Market Price Return¹			17.66%
Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM			17.73%
ETF Category: Morningstar Large Value²			16.79%


Performance Details			pages 12-13




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


NAV Return¹			13.32%
Market Price Return¹			13.31%
Dow Jones U.S. Mid-Cap Total Stock Market Index^SM			13.45%
ETF Category: Morningstar Mid-Cap Blend²			12.47%


Performance Details			pages 14-15




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


NAV Return¹			14.52%
Market Price Return¹			14.48%
Dow Jones U.S. Small-Cap Total Stock Market Index^SM			14.54%
ETF Category: Morningstar Small Blend²			14.16%


Performance Details			pages 16-17




Schwab U.S. Dividend Equity ETF^tm** (Ticker Symbol: SCHD)


NAV Return¹			16.83%
Market Price Return¹			16.95%
Dow Jones U.S. Dividend 100 Index^SM			17.09%
ETF Category: Morningstar Large Blend²			16.41%


Performance Details			pages 18-19

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). Brokerage commissions will reduce returns.

Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The Dow Jones Indexes are a product of S&P Dow Jones Indices LLC or its affiliates, and have been licensed for use by CSIM. The Schwab U.S. ETFs, based on their respective Dow Jones Indexes, are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.


*		The report period covers the 12 months beginning September 1, 2011 through August 31, 2012, except where noted.
**		Total returns are since inception date of 10/20/11. Inception represents the date that the shares began trading in the secondary market. The fund’s total return may differ from the return disclosed in the Financial Highlights, as the total return in the Financial Highlights is 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		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.

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.

Dear Shareholder,

As President and CEO of Charles Schwab Investment Management, Inc., I’d like to thank you for trusting us to help you meet your investment objectives, and for reading this important report concerning the Schwab U.S. ETFs. In spite of muted economic growth and international headwinds during the 12 months ended August 31, 2012, U.S. stocks generated double-digit returns, supported by intermittent signs of progress in Europe and active efforts by the Federal Reserve (Fed) to support a faster economic recovery.

U.S. economic growth slowed over the period, while the euro zone’s credit crisis continued, and corporate profits generally rose. The U.S. unemployment rate remained stubbornly high, finishing at 8.1% in August, and economic activity tapered off after the final quarter of 2011. Focused on propping up the U.S. economy, the Fed kept short-term interest rates historically low and implemented a variety of monetary policies. Companies generally grew their earnings faster than estimates, even as conditions proved less promising than had been hoped as 2011 wound to a close.

Shares of large-cap companies solidly outperformed shares of mid- and small-cap firms for the 12 months. Illustrating the performance of large-, mid-, and small-cap stocks, the Dow Jones U.S. Large-Cap Total Stock Market Index returned 17.4%, handily outpacing the 13.5% return of the Dow Jones U.S. Mid-Cap Total Stock Market Index, and 14.5% return of the Dow Jones U.S. Small-Cap Total Stock Market Index. Value-oriented stocks modestly outperformed growth shares for the report period, a trend that generally reversed in 2012 as Europe’s crisis began to seem more manageable.

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.



		18.00%		S&P 500^® Index: measures U.S. large-cap stocks

		13.40%		Russell 2000^® Index: measures U.S. small-cap stocks

		0.47%		MSCI EAFE^® Index: measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East

		5.78%		Barclays U.S. Aggregate Bond Index: measures the U.S. bond market

		0.05%		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.

Schwab U.S. ETFs 3

From the President continued

In spite of muted economic growth and international headwinds during the 12 months ended August 31, 2012, U.S. stocks generated double-digit returns.

Thank you for investing in the Schwab U.S. ETFs. As you may be aware, we recently announced that effective September 20, 2012, we reduced the operating expense ratios (OERs) on our entire suite of ETFs. As a result, Schwab ETFs now have some of the lowest OERs in their respective Lipper categories.*

We encourage you to review your investment portfolio regularly to ensure that it meets your current financial plan. For answers to frequently asked questions or for more information about the Schwab U.S. ETFs, please visit www.schwabetfs.com. We are also happy to hear from you at 1-800-435-4000.

Sincerely,

Indices are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly. Index return figures assume dividends and distributions were reinvested.


*		This claim is based on expense ratio data comparisons between Schwab and non-Schwab ETFs in their respective Lipper categories. Expense ratio data for non-Schwab ETFs were obtained from the funds’ prospectuses as of 9/4/12. Expense ratio data for Schwab ETFs^tm are as of 9/20/12. ETFs in the same Lipper category may track different indexes, have differences in holdings, and show different performances. Expense ratios are subject to change. Information has been sourced from Lipper, a Thomson Reuters Company (“Lipper Content”). All such information is protected by copyright: ^© 2012 THOMSON REUTERS. All rights reserved.

4 Schwab U.S. ETFs

Fund Management



		Agnes Hong, CFA, a managing director and portfolio manager of the investment adviser, has day-to-day responsibility for the co-management of the funds. Prior to joining the firm in September 2009, she worked for five years as a portfolio manager for a major asset management firm. Prior to that, she worked in strategy and management consulting for five years. In addition, she also worked as a senior product manager servicing global financial services clients.

		Ferian Juwono, CFA, a managing director and portfolio manager of the investment adviser, has day-to-day responsibility for the 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 publicly traded U.S. companies for which pricing information is readily available. The index is a float-adjusted market capitalization-weighted index that reflects the shares of securities actually available to investors in the marketplace. 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 12-month period that ended August 31, 2012, the fund closely tracked the index. The fund’s market price return was 17.27% and its NAV return was 17.07% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 17.13% during the same period. Because the return of the index does not include operational and transactional costs, the return of the fund tends to differ from that of the index.

Market Highlights. U.S. stocks overcame global headwinds to generate impressive returns for the 12-month report period, with all sectors of the index registering gains. Equities started out on rocky footing, as the euro zone’s sovereign debt crisis and a subsequent sharp increase in financial market volatility pushed investors toward U.S. Treasuries and other perceived safe havens. As meaningful progress in Europe emerged and the Federal Reserve continued to support an economic recovery in the U.S., investors shifted into potentially higher-yielding assets like stocks. This helped pave the way for a remarkable overall rally by equities—particularly during the fourth quarter of 2011 and first quarter of 2012—in spite of intermittent performance swings.

Contributors and Detractors. The Information Technology sector was the biggest contributor to the index’s return, and to the return of the fund. The large average weight of this sector reflected part of the reason for this contribution, with Information Technology stocks comprising more than 19% of the fund. Information Technology stocks returned nearly 24%. One example from this sector was Apple, which designs, manufactures, and markets personal computing and mobile communication devices. The fund’s Apple holdings surged nearly 74% over the 12 months as the underlying company enjoyed robust product sales and corresponding revenue growth.

The Consumer Discretionary sector, which represented an average weight of nearly 12% of the index and fund, also provided meaningful contributions. The fund’s Consumer Discretionary stocks returned approximately 22%, reflecting the overall performance of companies involved in retailing, consumer services, media, and other activities. One example from this sector was Home Depot. The fund’s Home Depot holdings surged approximately 74%, as the global home-improvement chain benefited from factors such as impressive operational results amid emerging signs of a turnaround in the U.S. housing sector.

The Materials sector generated positive returns for the index and fund, but was one of the weakest contributors due to the sector’s performance compared with other sectors. The Materials sector represented an average weight of approximately 4% of the fund, and returned approximately 5%. One example from this sector was Praxair, which distributes, sells, and produces atmospheric gasses. The fund’s Praxair holdings returned approximately 9%, as the underlying company experienced slowing demand for industrial gas in Europe and some emerging markets.

As of 08/31/12:

Statistics


Number of Holdings			1,834
Weighted Average Market Cap ($ x 1,000,000)			$97,006
Price/Earnings Ratio (P/E)			16.9
Price/Book Ratio (P/B)			2.2
Portfolio Turnover Rate¹			5%

Sector Weightings % of Investments


Information Technology			19.5%
Financials			15.8%
Consumer Discretionary			12.1%
Health Care			11.6%
Industrials			10.6%
Energy			10.3%
Consumer Staples			9.8%
Materials			3.8%
Utilities			3.6%
Telecommunication Services			2.8%
Other			0.1%
Total			100.0%

Top Equity Holdings % of Net Assets²


Apple, Inc.			4.1%
Exxon Mobil Corp.			2.7%
Microsoft Corp.			1.5%
Chevron Corp.			1.5%
General Electric Co.			1.4%
AT&T, Inc.			1.4%
International Business Machines Corp.			1.4%
Johnson & Johnson			1.2%
The Procter & Gamble Co.			1.2%
Pfizer, Inc.			1.2%
Total			17.6%

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		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
²		This list is not a recommendation of any security by the investment adviser.

6 Schwab U.S. ETFs

Schwab U.S. Broad Market ETF^tm

Performance and Fund Facts as of 08/31/12

November 3, 2009 – August 31, 2012
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	1 Year			Since Inception*


Fund: Schwab U.S. Broad Market ETF^tm (11/3/09)
NAV Return²		17.07	%	14.05%
Market Price Return²		17.27	%	14.06%
Dow Jones U.S. Broad Stock Market Index^SM		17.13	%	14.13%
ETF Category: Morningstar Large Blend³		16.17	%	13.01%

Fund Expense Ratio⁴: 0.06%

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—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Broad Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Broad Market ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing 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 dated December 17, 2011. Effective September 20, 2012, the management fee was reduced to 0.04%. For more information, see financial note 4 or refer to the prospectus supplement dated September 20, 2012.

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 the large-cap portion of the Dow Jones U.S. Total Stock Market Index^SM actually available to investors in the marketplace. The Dow Jones U.S. Large-Cap Total Stock Market Index^SM includes the components ranked 1-750 by full market capitalization. The fund will generally give the same weight to a given stock as does the index.

During the 12-month period that ended August 31, 2012, the fund closely tracked the index. The fund’s market price return was 17.32% and its NAV return was 17.36% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 17.44% during the same period. Because the return of the index does not include operational and transactional costs, the return of the fund tends to differ from that of the index.

Market Highlights. U.S. large-cap stocks overcame global headwinds to generate impressive returns for the 12-month report period, with all sectors of the index registering gains. Equities started out on rocky footing, as the euro zone’s sovereign debt crisis and a correspondingly sharp increase in financial market volatility pushed investors toward U.S. Treasuries and other perceived safe havens. As meaningful progress in Europe emerged and as the Federal Reserve continued to support an economic recovery in the U.S., investors shifted to potentially higher-yielding assets like stocks. This helped pave the way for a remarkable overall rally by equities—particularly during the fourth quarter of 2011 and first quarter of 2012—in spite of intermittent performance swings, while earnings for large-cap U.S. companies generally rose.

Contributors and Detractors. The Information Technology sector was the biggest contributor to the index’s return, and to the return of the fund. The large average weight of this sector reflected part of the reason for this contribution, with Information Technology stocks comprising more than 19% of the fund. Information Technology stocks returned roughly 25%. One example from this sector was Apple, which designs, manufactures, and markets personal computing and mobile communication devices. The fund’s Apple holdings surged nearly 74% over the 12 months as the underlying company enjoyed robust product sales and corresponding revenue growth.

Consumer Discretionary stocks, which represented an average weight of approximately 12% of the index and fund, also provided meaningful contributions. The fund’s Consumer Discretionary holdings returned approximately 22%, reflecting the overall performance of companies involved in retailing, consumer services, media, and other activities. Shares of Home Depot provided one example of this sector’s performance. The fund’s Home Depot holdings surged approximately 74%, as the global home-improvement chain benefited from factors such as respectable operational results amid emerging signs of a turnaround in the U.S. housing sector.

The Materials sector generated positive returns for the index and fund, but was one of the weakest contributors due to the sector’s performance compared with other sectors. The Materials sector represented an average weight of approximately 4% of the fund, and returned approximately 4%. One example from this sector was Praxair, which distributes, sells, and produces atmospheric gasses. The fund’s Praxair holdings returned approximately 9%, as the underlying company experienced slowing demand for industrial gas in Europe and some emerging markets.

As of 08/31/12:

Statistics


Number of Holdings			752
Weighted Average Market Cap ($ x 1,000,000)			$108,017
Price/Earnings Ratio (P/E)			16.1
Price/Book Ratio (P/B)			2.2
Portfolio Turnover Rate¹			4%

Sector Weightings % of Investments


Information Technology			19.9%
Financials			15.0%
Consumer Discretionary			11.9%
Health Care			11.5%
Energy			10.8%
Consumer Staples			10.6%
Industrials			9.9%
Materials			3.7%
Utilities			3.6%
Telecommunication Services			3.1%
Total			100.0%

Top Equity Holdings % of Net Assets²


Apple, Inc.			4.5%
Exxon Mobil Corp.			3.0%
Microsoft Corp.			1.7%
Chevron Corp.			1.6%
General Electric Co.			1.6%
AT&T, Inc.			1.6%
International Business Machines Corp.			1.6%
The Procter & Gamble Co.			1.4%
Johnson & Johnson			1.3%
Pfizer, Inc.			1.3%
Total			19.6%

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

Source of Sector Classification: S&P and MSCI.


¹		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
²		This list is not a recommendation of any security by the investment adviser.

8 Schwab U.S. ETFs

Schwab U.S. Large-Cap ETF^tm

Performance and Fund Facts as of 08/31/12

November 3, 2009 – August 31, 2012
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	1 Year			Since Inception*


Fund: Schwab U.S. Large-Cap ETF^tm (11/3/09)
NAV Return²		17.36	%	13.61%
Market Price Return²		17.32	%	13.61%
Dow Jones U.S. Large-Cap Total Stock Market Index^SM		17.44	%	13.74%
ETF Category: Morningstar Large Blend³		16.17	%	13.01%

Fund Expense Ratio⁴: 0.08%

Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Large-Cap Total Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Large-Cap ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing 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 dated December 17, 2011. Effective September 20, 2012, the management fee was reduced to 0.04%. For more information, see financial note 4 or refer to the prospectus supplement dated September 20, 2012.

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 the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index^SM actually available to investors in the marketplace. The Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM includes the components ranked 1-750 by full market capitalization and that are classified as “growth” based on a number of factors. The fund will generally give the same weight to a given stock as does the index.

During the 12-month period that ended August 31, 2012, the fund closely tracked the index. The fund’s market price return was 17.06% and its NAV return was 16.96% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 17.11% during the same period. Because the return of the index does not include operational and transactional costs, the return of the fund tends to differ from that of the index.

Market Highlights. U.S. large-cap stocks overcame global headwinds to generate impressive returns for the 12-month report period, with nine out of the index’s 10 sectors registering gains. Equities started out on rocky footing, as the euro zone’s sovereign debt crisis and a correspondingly sharp increase in financial market volatility pushed investors toward U.S. Treasuries and other perceived safe havens. As meaningful progress in Europe emerged and as the Federal Reserve continued to support an economic recovery in the U.S., investors shifted to potentially higher-yielding assets like stocks. This helped pave the way for a remarkable overall rally by equities—particularly during the fourth quarter of 2011 and first quarter of 2012—in spite of intermittent performance swings, while earnings for large-cap U.S. companies generally rose.

Contributors and Detractors. The Information Technology sector was the biggest contributor to the index’s return, and to the return of the fund. The large average weight of this sector reflected part of the reason for this contribution, with Information Technology stocks comprising more than 30% of the fund. Information Technology stocks returned roughly 27%. One example from this sector was Apple, which designs, manufactures, and markets personal computing and mobile communication devices. The fund’s Apple holdings surged nearly 74% over the 12 months as the underlying company enjoyed robust product sales and corresponding revenue growth.

Consumer Discretionary stocks, which represented an average weight of approximately 14% of the index and fund, also provided meaningful contributions. The fund’s Consumer Discretionary holdings returned approximately 20%, reflecting the overall performance of companies involved in retailing, consumer services, media, and other activities. Comcast Corp. provided one example of this sector’s performance. The fund’s Comcast holdings surged approximately 59%, as the high-speed Internet, phone service, and video provider benefited from factors such as an impressive cash-flow stream and cable segment growth.

The Energy sector was the only sector to generate losses for the index and fund. This sector represented an average weight of almost 10% of the fund. Energy stocks returned approximately -5% for the fund as global economic growth remained disappointing, and corresponding demand for energy resources was limited. Schlumberger, an oil-services company, provided one example from the Energy sector. The fund’s Schlumberger holdings returned approximately -6%.

As of 08/31/12:

Statistics


Number of Holdings			427
Weighted Average Market Cap ($ x 1,000,000)			$109,307
Price/Earnings Ratio (P/E)			18.7
Price/Book Ratio (P/B)			3.1
Portfolio Turnover Rate¹			8%

Sector Weightings % of Investments


Information Technology			31.7%
Consumer Discretionary			14.0%
Health Care			11.9%
Industrials			10.9%
Energy			8.9%
Financials			8.9%
Consumer Staples			8.0%
Materials			4.7%
Telecommunication Services			0.5%
Utilities			0.5%
Total			100.0%

Top Equity Holdings % of Net Assets²


Apple, Inc.			9.2%
Microsoft Corp.			3.4%
Google, Inc., Class A			2.6%
Berkshire Hathaway, Inc., Class B			2.4%
Wal-Mart Stores, Inc.			1.9%
Oracle Corp.			1.8%
PepsiCo, Inc.			1.7%
QUALCOMM, Inc.			1.6%
Cisco Systems, Inc.			1.5%
Schlumberger Ltd.			1.4%
Total			27.5%

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

Source of Sector Classification: S&P and MSCI.


¹		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
²		This list is not a recommendation of any security by the investment adviser.

10 Schwab U.S. ETFs

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

Performance and Fund Facts as of 08/31/12

December 11, 2009 – August 31, 2012
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	1 Year			Since Inception*


Fund: Schwab U.S. Large-Cap Growth ETF^tm (12/11/09)
NAV Return²		16.96	%	12.47%
Market Price Return²		17.06	%	12.51%
Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM		17.11	%	12.63%
ETF Category: Morningstar Large Growth³		16.19	%	12.74%

Fund Expense Ratio⁴: 0.13%

Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Large-Cap Growth Total Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Large-Cap Growth ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing 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 dated December 17, 2011. Effective September 20, 2012, the management fee was reduced to 0.07%. For more information, see financial note 4 or refer to the prospectus supplement dated September 20, 2012.

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 the large-cap value portion of the Dow Jones U.S. Total Stock Market Index^SM actually available to investors in the marketplace. The Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM includes the components ranked 1-750 by full market capitalization and that are classified as “value” based on a number of factors. The fund will generally give the same weight to a given stock as does the index.

During the 12-month period that ended August 31, 2012, the fund closely tracked the index. The fund’s market price return was 17.66% and its NAV return was 17.53% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 17.73% during the same period. Because the return of the index does not include operational and transactional costs, the return of the fund tends to differ from that of the index.

Contributors and Detractors. The Financials sector was the biggest contributor to the index’s return, and to the return of the fund. The large average weight of this sector reflected part of the reason for this contribution, with Financials stocks comprising nearly 21% of the fund. Financials stocks returned roughly 15% for the report period. The fund’s Wells Fargo shares provided one example of this sector’s performance, rising nearly 34% as the diversified financial services company benefited from factors such as an improving mortgage-origination business and investment-banking fee growth.

Consumer Discretionary stocks, which represented an average weight of approximately 9% of the index and fund, also provided meaningful contributions. The fund’s Consumer Discretionary stocks returned approximately 25%, reflecting the overall performance of companies involved in retailing, consumer services, media, and other activities. Home Depot provided one example of this sector’s performance. The fund’s Home Depot holdings surged approximately 74%, as the global home-improvement chain benefited from factors such as respectable operational results amid emerging signs of a turnaround in the U.S. housing sector.

The Materials sector generated positive returns for the index and fund, but was one of the weakest contributors due to the sector’s performance compared with other sectors. The Materials sector represented an average weight of approximately 3% of the fund, and returned roughly 10%. Dow Chemical provided one example of this sector’s performance. The fund’s Dow Chemical holdings returned roughly 7% as the diversified, globally present chemical company experienced slowing business trends amid lackluster economic fundamentals around the world.

As of 08/31/12:

Statistics


Number of Holdings			326
Weighted Average Market Cap ($ x 1,000,000)			$106,857
Price/Earnings Ratio (P/E)			14.3
Price/Book Ratio (P/B)			1.8
Portfolio Turnover Rate¹			8%

Sector Weightings % of Investments


Financials			20.8%
Consumer Staples			12.9%
Energy			12.6%
Health Care			11.1%
Consumer Discretionary			9.8%
Industrials			9.0%
Information Technology			8.6%
Utilities			6.7%
Telecommunication Services			5.6%
Materials			2.7%
Other			0.2%
Total			100.0%

Top Equity Holdings % of Net Assets²


Exxon Mobil Corp.			5.8%
Chevron Corp.			3.1%
General Electric Co.			3.1%
AT&T, Inc.			3.0%
International Business Machines Corp.			3.0%
The Procter & Gamble Co.			2.6%
Johnson & Johnson			2.6%
Pfizer, Inc.			2.5%
Wells Fargo & Co.			2.4%
The Coca-Cola Co.			2.2%
Total			30.3%

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

Source of Sector Classification: S&P and MSCI.


¹		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
²		This list is not a recommendation of any security by the investment adviser.

12 Schwab U.S. ETFs

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

Performance and Fund Facts as of 08/31/12

December 11, 2009 – August 31, 2012
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	1 Year			Since Inception*


Fund: Schwab U.S. Large-Cap Value ETF^tm (12/11/09)
NAV Return²		17.53	%	10.91%
Market Price Return²		17.66	%	10.91%
Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM		17.73	%	11.13%
ETF Category: Morningstar Large Value³		16.79	%	11.64%

Fund Expense Ratio⁴: 0.13%

Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Large-Cap Value Total Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Large-Cap Value ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing 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 dated December 17, 2011. Effective September 20, 2012, the management fee was reduced to 0.07%. For more information, see financial note 4 or refer to the prospectus supplement dated September 20, 2012.

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 mid-cap portion of the Dow Jones U.S. Total Stock Market Index^SM actually available to investors in the marketplace. The Dow Jones U.S. Mid-Cap Total Stock Market Index^SM includes the components ranked 501–1,000 by full market capitalization. The fund will generally give the same weight to a given security as does the index.

During the 12-month period that ended August 31, 2012, the fund closely tracked the index. The fund’s market price return was 13.31% and its NAV return was 13.32% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 13.45% during the same period. Because the return of the index does not include operational and transactional costs, the return of the fund tends to differ from that of the index.

Market Highlights. U.S. mid-cap stocks overcame global headwinds to generate respectable returns for the 12-month report period, with nine out of the index’s 10 sectors registering gains. Equities started out on rocky footing, as the euro zone’s sovereign debt crisis and a correspondingly sharp increase in financial market volatility pushed investors toward U.S. Treasuries and other perceived safe havens. Investors soon shifted to potentially higher-yielding assets like stocks, however, as meaningful progress in Europe emerged, and as the Federal Reserve continued to support an economic recovery in the U.S. through a variety of active efforts. In spite of intermittent up- and downdrafts, equities staged a remarkable overall rally, while U.S. stock market volatility eventually dwindled.

Contributors and Detractors. The Financials sector was the biggest contributor to the index’s return, and to the return of the fund. The large average weight of this sector reflected part of the reason for this contribution, with Financials stocks comprising nearly 21% of the fund. Financials stocks returned roughly 14% for the report period. Digital Realty Trust—a company that acquires, owns, and manages technology-related real estate—provided one example of this sector’s performance. The fund’s Digital Realty Trust holdings rose nearly 25% as U.S. real estate investment trust companies benefitted from generally improving property fundamentals and earnings.

Consumer Discretionary stocks, which represented an average weight of approximately 15% of the index and fund, also provided meaningful contributions. The fund’s Consumer Discretionary stocks returned approximately 21%, reflecting the overall performance of companies involved in retailing, consumer services, media, and other activities. PulteGroup—a company that constructs and sells homes, communities, and residential land—provided one example of this sector’s performance. The fund’s PulteGroup holdings surged approximately 185% amid emerging signs of a turnaround in the U.S. housing sector, and on the heels of the sector’s lackluster performance in recent years.

The Energy sector was the only sector to generate losses for the index and fund. This sector represented an average weight of roughly 6% of the fund. Energy stocks returned approximately -7% for the fund as global economic growth remained disappointing, and corresponding demand for energy resources was limited. The fund’s holdings in Rowan Companies—a provider of contract drilling services for domestic and international interests with a global fleet of rigs—provided one example of this sector’s performance, returning roughly -3%.

As of 08/31/12:

Statistics


Number of Holdings			500
Weighted Average Market Cap ($ x 1,000,000)			$4,292
Price/Earnings Ratio (P/E)			24.0
Price/Book Ratio (P/B)			1.9
Portfolio Turnover Rate¹			19%

Sector Weightings % of Investments


Financials			21.5%
Consumer Discretionary			16.4%
Industrials			15.9%
Information Technology			14.5%
Materials			7.8%
Health Care			7.2%
Utilities			7.0%
Energy			5.7%
Consumer Staples			2.3%
Telecommunication Services			1.6%
Other			0.1%
Total			100.0%

Top Equity Holdings % of Net Assets²


Equinix, Inc.			0.6%
Digital Realty Trust, Inc.			0.6%
Kansas City Southern			0.5%
Eastman Chemical Co.			0.5%
The Macerich Co.			0.5%
PetSmart, Inc.			0.5%
Church & Dwight Co., Inc.			0.5%
Wyndham Worldwide Corp.			0.4%
SBA Communications Corp., Class A			0.4%
SL Green Realty Corp.			0.4%
Total			4.9%

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

Source of Sector Classification: S&P and MSCI.


¹		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
²		This list is not a recommendation of any security by the investment adviser.

14 Schwab U.S. ETFs

Schwab U.S. Mid-Cap ETF^tm

Performance and Fund Facts as of 08/31/12

January 13, 2011 – August 31, 2012
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	1 Year			Since Inception*


Fund: Schwab U.S. Mid-Cap ETF^tm (1/13/11)
NAV Return²		13.32	%	4.48%
Market Price Return²		13.31	%	4.53%
Dow Jones U.S. Mid-Cap Total Stock Market Index^SM		13.45	%	4.60%
ETF Category: Morningstar Mid-Cap Blend³		12.47	%	4.16%

Fund Expense Ratio⁴: 0.13%

Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Mid-Cap Total Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Mid-Cap ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing 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 dated December 17, 2011. Effective September 20, 2012, the management fee was reduced to 0.07%. For more information, see financial note 4 or refer to the prospectus supplement dated September 20, 2012.

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 the small-cap portion of the Dow Jones U.S. Total Stock Market Index^SM actually available to investors in the marketplace. The Dow Jones U.S. Small-Cap Total Stock Market Index^SM includes the components ranked 751-2,500 by full market capitalization. The fund will generally give the same weight to a given stock as does the index.

During the 12-month period that ended August 31, 2012, the fund closely tracked the index. The fund’s market price return was 14.48% and its NAV return was 14.52% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 14.54% during the same period. Because the return of the index does not include operational and transactional costs, the return of the fund tends to differ from that of the index.

Market Highlights. U.S. small-cap stocks overcame global headwinds to generate respectable returns for the 12-month report period, with nine out of the index’s 10 sectors registering gains. Equities started out on rocky footing, as the euro zone’s sovereign debt crisis and a correspondingly sharp increase in financial market volatility pushed investors toward U.S. Treasuries and other perceived safe havens. Investors soon shifted to potentially higher-yielding assets like stocks, however, as meaningful progress in Europe emerged, and as the Federal Reserve continued to support an economic recovery in the U.S. In spite of intermittent up- and downdrafts, equities staged a remarkable overall rally, while U.S. stock market volatility eventually dwindled.

Contributors and Detractors. The Financials sector was the biggest contributor to the index’s return, and to the return of the fund. The large average weight of this sector reflected part of the reason for this contribution, with Financials stocks comprising nearly 21% of the fund. Financials stocks returned roughly 18% for the report period. Taubman Centers Inc.—a company that acquires, owns, and operates regional shopping centers—provided one example from this sector. The fund’s Taubman Centers Inc. holdings rose nearly 43% as U.S. real estate investment trust companies benefitted from generally improving property fundamentals and earnings.

Consumer Discretionary stocks, which represented an average weight of approximately 14% of the index and fund, also provided meaningful contributions. The fund’s Consumer Discretionary stocks returned approximately 21%, reflecting the overall performance of companies involved in retailing, consumer services, media, and other activities. One example of this sector’s performance was franchise bakery café Panera Bread Company. The fund’s Panera Bread Company holdings rose approximately 40%, helped by factors such as the underlying company’s impressive earnings results.

The Energy sector was the only sector to generate losses for the index and fund. This sector represented an average weight of roughly 6% of the fund. Energy stocks returned approximately -9% for the fund as global economic growth remained disappointing, and corresponding demand for energy resources was limited. The fund’s holdings in Rosetta Resources—an oil and gas exploration and production company—provided one example of this sector’s performance, returning roughly -7%.

As of 08/31/12:

Statistics


Number of Holdings			1,762
Weighted Average Market Cap ($ x 1,000,000)			$1,857
Price/Earnings Ratio (P/E)			37.4
Price/Book Ratio (P/B)			2.0
Portfolio Turnover Rate¹			12%

Sector Weightings % of Investments


Financials			22.4%
Information Technology			16.9%
Industrials			16.5%
Consumer Discretionary			13.6%
Health Care			12.9%
Energy			5.3%
Materials			5.3%
Consumer Staples			3.3%
Utilities			3.0%
Telecommunication Services			0.7%
Other			0.1%
Total			100.0%

Top Equity Holdings % of Net Assets²


Tesoro Corp.			0.4%
Taubman Centers, Inc.			0.3%
PulteGroup, Inc.			0.3%
Onyx Pharmaceuticals, Inc.			0.3%
Ariba, Inc.			0.3%
AMERIGROUP Corp.			0.3%
Gartner, Inc.			0.3%
BioMarin Pharmaceutical, Inc.			0.3%
Arthur J. Gallagher & Co.			0.3%
American Campus Communities, Inc.			0.3%
Total			3.1%

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

Source of Sector Classification: S&P and MSCI.


¹		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
²		This list is not a recommendation of any security by the investment adviser.

16 Schwab U.S. ETFs

Schwab U.S. Small-Cap ETF^tm

Performance and Fund Facts as of 08/31/12

November 3, 2009 – August 31, 2012
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	1 Year			Since Inception*


Fund: Schwab U.S. Small-Cap ETF^tm (11/3/09)
NAV Return²		14.52	%	16.99%
Market Price Return²		14.48	%	17.00%
Dow Jones U.S. Small-Cap Total Stock Market Index^SM		14.54	%	17.16%
ETF Category: Morningstar Small Blend³		14.16	%	14.78%

Fund Expense Ratio⁴: 0.13%

Investments in smaller companies typically exhibit higher volatility.

Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc (CSIM). The “Dow Jones U.S. Small-Cap Total Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Small-Cap ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing 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 dated December 17, 2011. Effective September 20, 2012, the management fee was reduced to 0.10%. For more information, see financial note 4 or refer to the prospectus supplement dated September 20, 2012.

Schwab U.S. ETFs 17

Schwab U.S. Dividend Equity ETF™

The Schwab U.S. Dividend Equity ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index^SM (the index). The 100-component index is a subset of the Dow Jones U.S. Broad Market Index^SM, excluding REITs, master limited partnerships, preferred stocks, and convertibles. The index is modified market-capitalization weighted. The fund will generally give the same weight to a given stock as does the index.

During the reporting period that began with the fund’s inception date of October 20, 2011, and ended August 31, 2012, the fund’s market price return was 16.95% and its NAV return was 16.83%, closely tracking the index (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 17.09% during the same period. Because the return of the index does not include operational and transactional costs, the return of the fund tends to differ from that of the index. As of August 31, 2012, the fund’s dividend yield was 3.23%, matching the 3.23% yield of the index, and the fund’s 30-day SEC yield was 2.99%.

Market Highlights. U.S. large-cap stocks overcame global headwinds to generate impressive returns for the report period, with all sectors of the index registering gains. Equities started out on rocky footing, as the euro zone’s sovereign debt crisis and a correspondingly sharp increase in financial market volatility pushed investors toward U.S. Treasuries and other perceived safe havens. As meaningful progress in Europe emerged and as the Federal Reserve continued to support an economic recovery in the U.S., investors shifted to potentially higher-yielding assets like stocks. This helped pave the way for a remarkable overall rally by equities—particularly during the fourth quarter of 2011 and first quarter of 2012—in spite of intermittent performance swings, while earnings for large-cap U.S. companies generally rose.

Contributors and Detractors. The Consumer Staples sector was the biggest contributor to the index’s return, and to the return of the fund. The large average weight of this sector reflected part of the reason for this contribution, with Consumer Staples stocks comprising approximately 26% of the fund. Consumer Staples stocks returned roughly 16%. The fund’s Wal-Mart holdings provided one example of this sector’s performance, rising approximately 32% as the discount store and supercenter company benefitted from supportive factors such as rising business momentum.

Industrials stocks, which represented an average weight of approximately 17% of the index and the fund, also provided meaningful contributions. The fund’s Industrials stocks returned approximately 18%. The fund’s holdings in 3M Company—which operates in markets such as electronics, industrial, telecommunications—provided one example of this sector’s performance, rising approximately 21%.

The Utilities sector generated narrowly positive returns for the index and the fund, but was the weakest contributor due to the sector’s performance compared with other sectors. The Utilities sector represented an average weight of approximately 3% of the fund, and finished with a roughly flat return. The fund’s holdings in PPL Corp.—an energy and utility holding company—provided one example of this sector’s performance, returning roughly 5%.

As of 08/31/12:

Statistics


Number of Holdings			100
Weighted Average Market Cap ($ x 1,000,000)			$103,163
Price/Earnings Ratio (P/E)			14.3
Price/Book Ratio (P/B)			3.1
Portfolio Turnover Rate¹			17%

Sector Weightings % of Investments


Consumer Staples			29.4%
Industrials			16.0%
Health Care			15.5%
Energy			12.0%
Consumer Discretionary			9.1%
Information Technology			7.1%
Materials			4.0%
Utilities			3.1%
Financials			2.7%
Telecommunication Services			1.0%
Other			0.1%
Total			100.0%

Top Equity Holdings % of Net Assets²


Chevron Corp.			4.7%
Wal-Mart Stores, Inc.			4.7%
Exxon Mobil Corp.			4.6%
Johnson & Johnson			4.6%
The Procter & Gamble Co.			4.5%
The Coca-Cola Co.			4.3%
PepsiCo, Inc.			4.2%
Intel Corp.			4.1%
Abbott Laboratories			3.8%
McDonald’s Corp.			3.4%
Total			42.9%

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

Source of Sector Classification: S&P and MSCI.


¹		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
²		This list is not a recommendation of any security by the investment adviser.

18 Schwab U.S. ETFs

Schwab U.S. Dividend Equity ETF^tm

Performance and Fund Facts as of 08/31/12

October 20, 2011 – August 31, 2012
Performance of Hypothetical
$10,000 Investment¹

Total Returns¹


Fund and Inception Date	Since Inception*


Fund: Schwab U.S. Dividend Equity ETF^tm (10/20/11)
NAV Return²		16.83	%
Market Price Return²		16.95	%
Dow Jones U.S. Dividend 100 Index^SM		17.09	%
ETF Category: Morningstar Large Blend³		16.41	%

Fund Expense Ratio⁴: 0.17%

Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Dividend 100 Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Dividend Equity ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.


*		Total returns are since inception date of 10/20/11. Inception represents the date that the shares began trading in the secondary market. The fund’s total return may differ from the return disclosed in the Financial Highlights, as the total return in the Financial Highlights is calculated from the commencement of operations date which is the first day the NAV was determined.
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 dated December 17, 2011. Effective September 20, 2012, the management fee was reduced to 0.07%. For more information, see financial note 4 or refer to the prospectus supplement dated September 20, 2012.

Schwab U.S. ETFs 19

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

As a fund shareholder, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares; and, (2) ongoing costs, including management 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 March 1, 2012 and held through August 31, 2012.

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 selling 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 3/1/12		at 8/31/12		3/1/12–8/31/12

Schwab U.S. Broad Market ETF^tm
Actual Return		0.06%	$	1,000	$	1,033.50	$	0.31
Hypothetical 5% Return		0.06%	$	1,000	$	1,024.83	$	0.31


Schwab U.S. Large-Cap ETF^tm
Actual Return		0.08%	$	1,000	$	1,036.10	$	0.41
Hypothetical 5% Return		0.08%	$	1,000	$	1,024.73	$	0.41


Schwab U.S. Large-Cap Growth ETF^tm
Actual Return		0.13%	$	1,000	$	1,026.60	$	0.66
Hypothetical 5% Return		0.13%	$	1,000	$	1,024.48	$	0.66


Schwab U.S. Large-Cap Value ETF^tm
Actual Return		0.13%	$	1,000	$	1,044.30	$	0.67
Hypothetical 5% Return		0.13%	$	1,000	$	1,024.48	$	0.66


Schwab U.S. Mid-Cap ETF^tm
Actual Return		0.13%	$	1,000	$	994.10	$	0.65
Hypothetical 5% Return		0.13%	$	1,000	$	1,024.48	$	0.66


Schwab U.S. Small-Cap ETF^tm
Actual Return		0.13%	$	1,000	$	1,012.70	$	0.66
Hypothetical 5% Return		0.13%	$	1,000	$	1,024.48	$	0.66


Schwab U.S. Dividend Equity ETF^tm
Actual Return		0.17%	$	1,000	$	1,057.70	$	0.88
Hypothetical 5% Return		0.17%	$	1,000	$	1,024.28	$	0.87


¹		Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights which covers a 12-month period.
²		Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 184 days of the period, and divided by the 366 days of the fiscal year.

20 Schwab U.S. ETFs

Schwab U.S. Broad Market ETF™

Financial Statements

Financial Highlights


	9/1/11–			9/1/10–			10/30/09¹–
	8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		29.47			25.11			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.65	²		0.56	²		0.42	²
Net realized and unrealized gains (losses)		4.32			4.32			(0.05	)

Total from investment operations		4.97			4.88			0.37
Less distributions:
Distributions from net investment income		(0.60	)		(0.52	)		(0.26	)

Net asset value at end of period		33.84			29.47			25.11

Total return (%)		17.07			19.41			1.42	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.06			0.06			0.07	^4,5
Gross operating expenses		0.06			0.06			0.07	⁴
Net investment income (loss)		2.06			1.83			1.92	⁴
Portfolio turnover rate⁶		5			3			2	³
Net assets, end of period ($ x 1,000)		1,072,825			742,651			272,490

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 8/31/10 is a blended rate.

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

See financial notes 21

Schwab U.S. Broad Market ETF

Portfolio Holdings as of August 31, 2012

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 the fund’s website at www.schwabetfs.com.


				Cost		Value
Holdings by Category				($)		($)

	99	.7%	Common Stock		968,388,235		1,069,865,776
	0	.0%	Rights		4,273		—
	0	.1%	Other Investment Company		611,006		611,006


	99	.8%	Total Investments		969,003,514		1,070,476,782
	0	.5%	Collateral Invested for Securities on Loan		5,433,292		5,433,292
	(0	.3)%	Other Assets and Liabilities, Net				(3,084,679	)


	100	.0%	Net Assets				1,072,825,395


	Number		Value
Security	of Shares		($)

Common Stock 99.7% of net assets

Automobiles & Components 0.7%
Allison Transmission Holdings, Inc. (a)		1,268		22,532
American Axle & Manufacturing Holdings, Inc. *		3,170		35,409
BorgWarner, Inc. *		8,242		566,885
Cooper Tire & Rubber Co.		6,340		126,737
Dana Holding Corp.		10,778		147,227
Dorman Products, Inc. *		2,536		74,761
Drew Industries, Inc. *		1,440		41,717
Federal-Mogul Corp. *		3,048		28,529
Ford Motor Co.		266,253		2,486,803
General Motors Co. *		40,576		866,297
Gentex Corp.		9,510		166,615
Harley-Davidson, Inc.		16,484		691,669
Johnson Controls, Inc.		46,916		1,276,584
Lear Corp.		7,608		295,419
Tenneco, Inc. *		3,804		115,527
Tesla Motors, Inc. *(a)		3,804		108,490
The Goodyear Tire & Rubber Co. *		20,288		247,514
Thor Industries, Inc.		3,170		99,665
TRW Automotive Holdings Corp. *		7,608		332,546
Visteon Corp. *		4,438		204,237

				7,935,163

Banks 3.3%
Associated Banc-Corp.		13,634		176,697
Astoria Financial Corp.		10,144		102,150
BancFirst Corp.		1,283		53,091
BancorpSouth, Inc.		5,072		74,761
Bank of Hawaii Corp.		3,170		146,549
Bank of the Ozarks, Inc.		2,536		81,406
BankUnited, Inc.		2,751		69,463
BB&T Corp.		48,184		1,519,723
BBCN Bancorp, Inc. *		4,750		59,470
Beneficial Mutual Bancorp, Inc. *		5,877		51,776
BOK Financial Corp.		2,536		145,998
Boston Private Financial Holdings, Inc.		9,510		90,250
Brookline Bancorp, Inc.		5,736		48,699
CapitalSource, Inc.		19,094		132,321
Capitol Federal Financial, Inc.		11,390		135,199
Cathay General Bancorp		7,608		124,543
Central Pacific Financial Corp. *		3,080		42,812
Chemical Financial Corp.		2,060		47,256
CIT Group, Inc. *		14,582		550,616
Citizens Republic Bancorp, Inc. *		2,780		56,907
City Holding Co.		1,268		43,264
City National Corp.		3,170		162,780
Columbia Banking System, Inc.		4,438		79,174
Comerica, Inc.		14,582		447,813
Commerce Bancshares, Inc.		5,932		238,644
Community Bank System, Inc.		2,536		71,109
Cullen/Frost Bankers, Inc.		3,804		211,502
CVB Financial Corp.		6,554		78,320
East West Bancorp, Inc.		10,778		236,469
EverBank Financial Corp.		3,700		43,919
F.N.B. Corp.		9,708		106,303
Fifth Third Bancorp		66,570		1,007,870
First Citizens BancShares, Inc., Class A		634		104,699
First Commonwealth Financial Corp.		8,417		58,582
First Financial Bancorp		3,860		62,841
First Financial Bankshares, Inc. (a)		3,170		110,253
First Horizon National Corp.		22,190		198,822
First Interstate BancSystem, Inc.		2,880		41,184
First Midwest Bancorp, Inc.		6,340		74,875
First Niagara Financial Group, Inc.		24,536		193,589
First Republic Bank		5,072		165,804
FirstMerit Corp.		7,608		119,370
Fulton Financial Corp.		15,536		151,165
Glacier Bancorp, Inc.		7,608		117,239
Hancock Holding Co.		5,706		169,126
Home BancShares, Inc.		2,536		79,909
Hudson City Bancorp, Inc.		33,602		241,598
Huntington Bancshares, Inc.		59,596		393,334
IBERIABANK Corp.		1,902		89,223
Independent Bank Corp.		1,540		44,906
International Bancshares Corp.		3,960		72,310
Investors Bancorp, Inc. *		3,804		65,315
Kearny Financial Corp.		5,447		52,672
KeyCorp		68,286		575,651
M&T Bank Corp.		8,876		771,324
MB Financial, Inc.		5,706		116,517
MGIC Investment Corp. *		19,020		22,444
National Penn Bancshares, Inc.		8,820		78,498
Nationstar Mortgage Holdings, Inc. *		2,060		55,867
NBT Bancorp, Inc.		2,358		49,589
New York Community Bancorp, Inc. (a)		29,798		395,121
Northfield Bancorp, Inc.		2,980		44,700
Northwest Bancshares, Inc.		9,510		114,881

22 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Ocwen Financial Corp. *		8,876		228,379
Old National Bancorp		9,510		125,532
Oritani Financial Corp.		4,438		64,928
Pacific Capital Bancorp *		874		40,134
PacWest Bancorp		3,170		73,798
Park National Corp. (a)		908		61,154
People’s United Financial, Inc.		24,092		288,381
Pinnacle Financial Partners, Inc. *		2,360		45,170
PNC Financial Services Group, Inc.		36,772		2,285,748
Popular, Inc. *		6,984		110,627
PrivateBancorp, Inc.		5,706		93,008
Prosperity Bancshares, Inc.		3,170		133,457
Provident Financial Services, Inc.		5,072		78,312
Regions Financial Corp.		98,270		683,959
Signature Bank *		3,170		204,877
Sterling Financial Corp.		2,591		54,929
SunTrust Banks, Inc.		38,040		957,467
Susquehanna Bancshares, Inc.		12,830		134,843
SVB Financial Group *		3,170		183,828
Synovus Financial Corp.		51,354		106,816
TCF Financial Corp.		12,928		143,759
Texas Capital Bancshares, Inc. *		2,584		118,916
TFS Financial Corp. *		8,876		78,464
Trustmark Corp.		5,072		120,156
U.S. Bancorp		133,774		4,469,389
UMB Financial Corp.		2,536		124,340
Umpqua Holdings Corp.		10,144		128,220
United Bankshares, Inc. (a)		5,072		123,402
Valley National Bancorp		16,641		161,418
ViewPoint Financial Group, Inc.		2,680		49,392
Washington Federal, Inc.		7,608		122,489
Webster Financial Corp.		5,141		109,400
Wells Fargo & Co.		349,323		11,887,462
Westamerica Bancorp		1,902		88,538
Western Alliance Bancorp *		6,454		60,087
Wintrust Financial Corp.		3,170		118,590
Zions Bancorp.		12,046		231,886

				35,359,517

Capital Goods 7.8%
3M Co.		45,014		4,168,296
A.O. Smith Corp.		2,536		138,745
AAR Corp.		2,536		37,736
Actuant Corp., Class A		5,706		160,453
Acuity Brands, Inc.		3,170		203,387
Aecom Technology Corp. *		6,974		135,226
Aegion Corp. *		2,756		53,797
Aerovironment, Inc. *		1,902		45,382
AGCO Corp. *		6,340		266,851
Air Lease Corp. *		6,340		130,731
Aircastle Ltd.		5,706		65,163
Albany International Corp., Class A		2,200		46,464
Alliant Techsystems, Inc.		1,902		93,179
American Science & Engineering, Inc.		634		37,704
AMETEK, Inc.		17,118		587,319
Applied Industrial Technologies, Inc.		3,170		128,956
Armstrong World Industries, Inc.		1,487		65,383
Astec Industries, Inc. *		1,404		41,179
AZZ, Inc.		1,640		52,086
B/E Aerospace, Inc. *		7,608		306,298
Barnes Group, Inc.		3,354		79,389
Beacon Roofing Supply, Inc. *		3,170		89,204
Belden, Inc.		3,804		129,830
Blount International, Inc. *		3,170		40,830
Brady Corp., Class A		3,170		89,014
Briggs & Stratton Corp.		5,072		87,847
Carlisle Cos., Inc.		4,438		232,285
Caterpillar, Inc.		41,199		3,515,511
Ceradyne, Inc.		1,747		41,491
Chart Industries, Inc. *		1,923		134,225
CIRCOR International, Inc.		1,268		40,386
CLARCOR, Inc.		3,804		183,125
Colfax Corp. *		3,170		104,261
Cooper Industries plc		10,978		803,041
Crane Co.		3,804		144,514
Cubic Corp.		1,084		54,731
Cummins, Inc.		12,105		1,175,517
Curtiss-Wright Corp.		3,170		95,290
Danaher Corp.		39,942		2,139,693
Deere & Co.		27,928		2,097,672
Donaldson Co., Inc.		10,144		357,982
Dover Corp.		12,680		733,031
Dycom Industries, Inc. *		2,306		33,483
Eaton Corp.		23,458		1,049,042
EMCOR Group, Inc.		4,438		122,622
Emerson Electric Co.		51,988		2,636,831
Encore Wire Corp.		1,739		49,248
EnerSys *		4,438		165,315
Engility Holdings, Inc. *		1,153		21,342
EnPro Industries, Inc. *		1,420		53,307
ESCO Technologies, Inc.		2,536		89,850
Esterline Technologies Corp. *		2,536		151,653
Exelis, Inc.		12,680		128,068
Fastenal Co.		20,288		874,210
Flowserve Corp.		3,804		485,619
Fluor Corp.		11,773		606,309
Fortune Brands Home & Security, Inc. *		10,778		274,839
Foster Wheeler AG *		7,808		170,995
Franklin Electric Co., Inc.		1,902		103,145
Gardner Denver, Inc.		3,804		229,305
GATX Corp.		3,804		156,573
Generac Holdings, Inc.		1,902		40,988
General Cable Corp. *		3,295		89,262
General Dynamics Corp.		20,922		1,370,600
General Electric Co.		739,867		15,322,646
Graco, Inc.		4,438		219,237
GrafTech International Ltd. *		8,876		83,168
Granite Construction, Inc.		3,804		104,876
H&E Equipment Services, Inc. *		2,634		46,622
Harsco Corp.		5,706		116,345
HEICO Corp., Class A		3,961		117,761
Hexcel Corp. *		6,796		154,065
Honeywell International, Inc.		50,086		2,927,527
Hubbell, Inc., Class B		3,804		307,439
Huntington Ingalls Industries, Inc. *		3,804		152,426
IDEX Corp.		5,706		227,441
II-VI, Inc. *		5,092		94,711
Illinois Tool Works, Inc.		28,833		1,709,509
Ingersoll-Rand plc		21,691		1,014,271
Interline Brands, Inc. *		2,373		60,417
ITT Corp.		6,340		126,166

See financial notes 23

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Jacobs Engineering Group, Inc. *		8,876		350,957
Joy Global, Inc.		7,608		406,115
Kaman Corp.		1,902		62,386
Kaydon Corp.		3,170		70,501
KBR, Inc.		11,412		309,151
Kennametal, Inc.		5,706		210,209
L-3 Communications Holdings, Inc.		6,974		489,854
Lennox International, Inc.		3,804		180,728
Lincoln Electric Holdings, Inc.		6,340		261,525
Lindsay Corp.		855		55,883
Lockheed Martin Corp.		18,411		1,677,979
Masco Corp.		26,628		377,052
MasTec, Inc. *		4,383		79,946
Meritor, Inc. *		7,205		32,206
Moog, Inc., Class A *		3,804		139,340
MRC Global, Inc. *		1,902		41,901
MSC Industrial Direct Co., Inc. Class A		3,170		219,681
Mueller Industries, Inc.		2,621		112,965
NACCO Industries, Inc., Class A		634		67,458
Navistar International Corp. *		4,438		97,547
Nordson Corp.		3,804		223,713
Northrop Grumman Corp.		16,484		1,102,615
Orbital Sciences Corp. *		3,804		52,495
Oshkosh Corp. *		6,340		160,656
Owens Corning *		7,883		262,977
PACCAR, Inc.		25,360		1,012,118
Pall Corp.		8,242		457,513
Parker Hannifin Corp.		10,778		862,024
Pentair, Inc.		6,974		296,395
Polypore International, Inc. *(a)		2,536		82,217
Precision Castparts Corp.		10,144		1,633,995
Primoris Services Corp.		3,273		40,258
Proto Labs, Inc. *(a)		1,645		51,752
Quanex Building Products Corp.		2,580		45,150
Quanta Services, Inc. *		13,948		334,752
Raven Industries, Inc.		2,536		77,018
Raytheon Co.		23,152		1,308,551
RBC Bearings, Inc. *		1,902		87,473
Regal-Beloit Corp.		2,836		193,018
Rexnord Corp. *		1,268		19,083
Robbins & Myers, Inc.		3,170		189,629
Rockwell Automation, Inc.		10,144		730,977
Rockwell Collins, Inc.		10,778		526,721
Roper Industries, Inc.		6,974		716,857
Rush Enterprises, Inc., Class A *		2,291		39,039
Sauer-Danfoss, Inc.		1,065		40,608
Seaboard Corp. *		26		54,319
Simpson Manufacturing Co., Inc.		3,804		96,736
Snap-On, Inc.		3,804		264,074
Spirit AeroSystems Holdings, Inc., Class A *		8,095		201,242
SPX Corp.		3,804		243,076
Standex International Corp.		634		28,302
Stanley Black & Decker, Inc.		12,046		792,386
Sun Hydraulics Corp.		1,739		40,258
TAL International Group, Inc.		1,914		65,095
Teledyne Technologies, Inc. *		3,170		204,497
Tennant Co.		1,902		79,789
Terex Corp. *		8,242		181,901
Textainer Group Holdings Ltd. (a)		1,533		54,146
Textron, Inc.		19,654		525,155
The Babcock & Wilcox Co. *		8,242		203,330
The Boeing Co.		46,282		3,304,535
The Manitowoc Co., Inc.		10,778		138,821
The Middleby Corp. *		1,301		149,810
The Shaw Group, Inc. *		5,706		240,108
The Timken Co.		5,706		229,153
The Toro Co.		5,072		188,678
Titan International, Inc.		2,536		52,952
TransDigm Group, Inc. *		3,199		443,445
TriMas Corp. *		2,200		47,300
Trinity Industries, Inc.		5,706		161,708
Triumph Group, Inc.		2,685		159,570
Tutor Perini Corp. *		5,072		53,814
Tyco International Ltd.		32,334		1,822,991
United Rentals, Inc. *		5,786		186,946
United Technologies Corp.		55,792		4,454,991
Universal Forest Products, Inc.		1,340		51,496
URS Corp.		5,706		207,755
USG Corp. *(a)		4,608		94,740
Valmont Industries, Inc.		1,902		241,078
W.W. Grainger, Inc.		4,438		914,050
WABCO Holdings, Inc. *		4,438		260,599
Wabtec Corp.		3,170		247,704
Watsco, Inc.		1,902		143,525
Watts Water Technologies, Inc., Class A		3,170		116,180
WESCO International, Inc. *		3,170		183,163
Woodward, Inc.		3,804		132,874
Xylem, Inc.		12,680		307,997

				84,181,714

Commercial & Professional Services 0.9%
ABM Industries, Inc.		3,092		62,520
Acacia Research Corp. *		2,536		66,798
Acco Brands Corp. *		7,608		50,137
Avery Dennison Corp.		7,608		237,598
Cintas Corp.		8,242		333,142
Clean Harbors, Inc. *		3,804		206,900
Copart, Inc. *		8,048		214,962
Corrections Corp. of America		7,608		253,422
Covanta Holding Corp.		9,510		162,621
Deluxe Corp.		3,804		107,919
Encore Capital Group, Inc. *		1,540		43,166
Equifax, Inc.		8,876		406,343
Exponent, Inc. *		920		47,895
FTI Consulting, Inc. *		3,804		98,942
G&K Services, Inc., Class A		1,902		59,666
Healthcare Services Group, Inc.		4,322		91,497
Herman Miller, Inc.		4,060		79,414
HNI Corp.		3,804		105,447
Huron Consulting Group, Inc. *		1,268		40,918
IHS, Inc., Class A *		3,890		443,616
Insperity, Inc.		1,911		46,724
Interface, Inc.		6,974		95,753
Iron Mountain, Inc.		10,920		358,176
KAR Auction Services, Inc. *		2,621		45,867
Knoll, Inc.		3,347		48,665
Korn/Ferry International *		3,240		46,332
Manpower, Inc.		5,706		211,750
McGrath Rentcorp		1,670		42,051
Mine Safety Appliances Co.		2,217		77,307

24 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Mobile Mini, Inc. *		2,536		43,366
Navigant Consulting, Inc. *		3,856		42,609
Nielsen Holdings N.V. *		4,950		138,798
NL Industries, Inc.		3,080		35,913
On Assignment, Inc. *		2,580		42,596
Pitney Bowes, Inc. (a)		14,582		194,815
Portfolio Recovery Associates, Inc. *		1,268		127,244
R.R. Donnelley & Sons Co. (a)		14,582		160,110
Republic Services, Inc.		21,556		596,023
Resources Connection, Inc.		5,706		63,793
Robert Half International, Inc.		10,778		283,461
Rollins, Inc.		5,228		121,708
RPX Corp. *		2,865		33,635
Steelcase, Inc., Class A		8,940		86,718
Stericycle, Inc. *		5,906		540,517
Sykes Enterprises, Inc. *		4,438		59,869
Team, Inc. *		1,902		59,476
Tetra Tech, Inc. *		3,804		98,676
The Advisory Board Co. *		2,536		112,421
The Brink’s Co.		3,804		84,677
The Corporate Executive Board Co.		2,292		106,715
The Dun & Bradstreet Corp.		3,804		307,934
The Geo Group, Inc.		5,072		133,444
Towers Watson & Co., Class A		3,980		216,194
TrueBlue, Inc. *		3,804		59,076
UniFirst Corp.		1,268		80,531
United Stationers, Inc.		3,804		92,019
Verisk Analytics, Inc., Class A *		10,144		492,187
Waste Connections, Inc.		8,372		242,369
Waste Management, Inc.		30,156		1,042,794

				9,785,236

Consumer Durables & Apparel 1.4%
American Greetings Corp., Class A (a)		2,780		40,004
Arctic Cat, Inc. *		1,268		54,854
Blyth, Inc.		1,020		43,166
Brookfield Residential Properties, Inc. *		4,941		70,014
Brunswick Corp.		6,340		150,195
Carter’s, Inc. *		3,498		194,874
Coach, Inc.		20,288		1,179,341
Columbia Sportswear Co.		1,268		66,304
Crocs, Inc. *		7,025		122,867
D.R. Horton, Inc.		20,288		385,269
Deckers Outdoor Corp. *(a)		3,170		156,978
Ethan Allen Interiors, Inc.		1,840		40,627
Fifth & Pacific Cos., Inc. *		6,575		87,119
Fossil, Inc. *		3,804		323,150
Garmin Ltd. (a)		8,242		332,565
Hanesbrands, Inc. *		6,974		226,167
Harman International Industries, Inc.		5,072		233,464
Hasbro, Inc.		8,242		309,157
Helen of Troy Ltd. *		3,170		99,665
Iconix Brand Group, Inc. *		5,086		95,108
iRobot Corp. *		1,879		47,332
Jarden Corp.		5,528		267,168
KB Home (a)		4,626		51,071
La-Z-Boy, Inc. *		5,072		69,994
Leapfrog Enterprises, Inc. *		4,120		44,661
Leggett & Platt, Inc.		11,412		270,921
Lennar Corp., Class A		10,778		349,531
M.D.C Holdings, Inc.		3,170		109,936
Mattel, Inc.		23,534		826,985
Meritage Homes Corp. *		1,911		71,223
Michael Kors Holdings Ltd. *		2,897		156,293
Mohawk Industries, Inc. *		3,804		274,078
Movado Group, Inc.		1,540		54,146
Newell Rubbermaid, Inc.		20,288		363,764
NIKE, Inc., Class B		25,994		2,530,776
NVR, Inc. *		348		288,207
Oxford Industries, Inc.		1,270		69,253
Polaris Industries, Inc.		4,552		342,265
PulteGroup, Inc. *		24,092		329,579
PVH Corp.		4,438		416,728
Ralph Lauren Corp.		4,438		704,089
Skechers U.S.A., Inc., Class A *		2,780		60,243
Smith & Wesson Holding Corp. *		3,170		25,487
Standard Pacific Corp. *		11,449		76,708
Steven Madden Ltd. *		3,170		136,056
Sturm Ruger & Co., Inc. (a)		1,321		57,199
Tempur-Pedic International, Inc. *		4,438		138,643
The Jones Group, Inc.		5,072		64,262
The Ryland Group, Inc.		3,006		80,591
The Warnaco Group, Inc. *		3,170		163,001
Toll Brothers, Inc. *		10,778		352,656
True Religion Apparel, Inc.		1,740		40,351
Tumi Holdings, Inc. *(a)		2,260		47,596
Tupperware Brands Corp.		4,438		237,344
Under Armour, Inc., Class A *		5,300		308,513
Vera Bradley, Inc. *(a)		1,902		40,379
VF Corp.		6,340		967,991
Whirlpool Corp.		5,072		382,733
Wolverine World Wide, Inc.		3,804		178,902

				15,207,543

Consumer Services 2.2%
AFC Enterprises, Inc. *		1,902		45,686
American Public Education, Inc. *		1,270		42,799
Ameristar Casinos, Inc.		2,260		38,081
Apollo Group, Inc., Class A *		8,876		238,321
Ascent Capital Group, Inc., Class A *		1,020		52,581
Bally Technologies, Inc. *		3,804		168,479
BJ’s Restaurants, Inc. *		1,902		78,077
Bob Evans Farms, Inc.		2,037		80,136
Boyd Gaming Corp. *(a)		5,540		33,295
Bridgepoint Education, Inc. *(a)		3,914		38,592
Brinker International, Inc.		5,567		191,839
Buffalo Wild Wings, Inc. *		1,282		98,432
Burger King Worldwide, Inc. *		6,340		82,610
Carnival Corp.		27,833		965,248
CEC Entertainment, Inc.		1,879		55,825
Chipotle Mexican Grill, Inc. *		2,238		645,976
Choice Hotels International, Inc.		1,930		60,814
Churchill Downs, Inc.		971		55,570
Coinstar, Inc. *(a)		1,975		100,962
Cracker Barrel Old Country Store, Inc.		1,902		119,788
Darden Restaurants, Inc.		9,510		494,045
DeVry, Inc.		4,438		85,698
DineEquity, Inc. *		1,078		57,102

See financial notes 25

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Domino’s Pizza, Inc.		5,128		181,736
Dunkin’ Brands Group, Inc.		8,250		240,323
Gaylord Entertainment Co. *		2,536		102,809
Grand Canyon Education, Inc. *		2,360		49,843
H&R Block, Inc.		20,458		338,785
Hillenbrand, Inc.		5,072		91,905
Hyatt Hotels Corp., Class A *		2,536		96,191
International Game Technology		21,556		264,923
International Speedway Corp., Class A		2,044		54,391
Interval Leisure Group, Inc.		3,363		62,047
ITT Educational Services, Inc. *(a)		2,536		81,177
Jack in the Box, Inc. *		3,092		80,670
K12, Inc. *(a)		2,536		53,383
Las Vegas Sands Corp.		27,356		1,159,621
Life Time Fitness, Inc. *		2,781		132,042
Marriott International, Inc., Class A		20,096		757,217
Marriott Vacations Worldwide Corp. *		2,104		67,580
Matthews International Corp., Class A		2,536		75,902
McDonald’s Corp.		71,642		6,411,243
MGM Resorts International *		21,796		214,909
Orient-Express Hotels Ltd., Class A *		6,340		55,729
Panera Bread Co., Class A *		2,016		312,278
Papa John’s International, Inc. *		1,396		71,880
Peet’s Coffee & Tea, Inc. *		880		64,680
Penn National Gaming, Inc. *		4,438		174,369
Pinnacle Entertainment, Inc. *		4,403		48,741
Regis Corp.		4,060		73,121
Royal Caribbean Cruises Ltd.		9,510		256,960
Scientific Games Corp., Class A *		7,608		55,767
Service Corp. International		17,752		231,486
Shuffle Master, Inc. *		3,698		56,099
Six Flags Entertainment Corp.		3,807		210,261
Sonic Corp. *		4,438		41,584
Sotheby’s		4,534		141,733
Starbucks Corp.		53,258		2,642,129
Starwood Hotels & Resorts Worldwide, Inc.		13,714		756,053
Steiner Leisure Ltd. *		1,003		46,880
Stewart Enterprises, Inc., Class A		5,706		41,996
Strayer Education, Inc. (a)		1,268		82,141
Texas Roadhouse, Inc.		4,438		76,200
The Cheesecake Factory, Inc.		3,612		119,955
The Wendy’s Co.		25,994		110,994
Vail Resorts, Inc.		2,536		130,731
Weight Watchers International, Inc.		1,268		60,572
WMS Industries, Inc. *		3,170		50,498
Wyndham Worldwide Corp.		10,778		561,965
Wynn Resorts Ltd.		5,706		588,688
Yum! Brands, Inc.		32,334		2,060,323

				23,470,466

Diversified Financials 5.0%
Affiliated Managers Group, Inc. *		3,804		447,426
American Express Co.		72,276		4,213,691
Ameriprise Financial, Inc.		15,850		870,323
Bank of America Corp.		752,558		6,012,938
BGC Partners, Inc., Class A		6,554		29,559
BlackRock, Inc.		7,124		1,256,460
Capital One Financial Corp.		41,210		2,329,601
Cash America International, Inc.		2,045		79,387
CBOE Holdings, Inc.		7,016		199,535
Citigroup, Inc.		205,416		6,102,909
CME Group, Inc.		22,190		1,218,231
Cohen & Steers, Inc. (a)		1,902		64,193
Credit Acceptance Corp. *		634		62,424
DFC Global Corp. *		2,536		47,220
Discover Financial Services		38,040		1,473,289
ETRADE Financial Corp.		17,118		146,701
Eaton Vance Corp.		8,242		223,276
Evercore Partners, Inc., Class A		1,268		31,320
EZCORP, Inc., Class A *		3,804		86,161
Federated Investors, Inc., Class B (a)		7,608		161,442
Financial Engines, Inc. *		3,170		67,521
First Cash Financial Services, Inc. *		1,917		85,537
Franklin Resources, Inc.		10,151		1,191,727
GAMCO Investors, Inc., Class A		1,106		49,881
Green Dot Corp., Class A *(a)		1,744		19,969
Greenhill & Co., Inc.		2,536		110,696
HFF, Inc., Class A *		3,170		42,161
Interactive Brokers Group, Inc., Class A		3,127		43,215
IntercontinentalExchange, Inc. *		5,072		693,342
Invesco Ltd.		32,334		765,669
Janus Capital Group, Inc.		12,680		110,570
Jefferies Group, Inc.		10,299		151,292
JPMorgan Chase & Co.		266,280		9,889,639
Knight Capital Group, Inc., Class A *		6,275		17,319
Legg Mason, Inc.		9,027		221,884
Leucadia National Corp.		13,948		298,208
LPL Financial Holdings, Inc.		3,804		109,061
MarketAxess Holdings, Inc.		2,271		73,966
Moody’s Corp.		14,582		577,447
Morgan Stanley		95,144		1,427,160
MSCI, Inc., Class A *		8,876		311,370
Nelnet, Inc., Class A		1,978		47,373
Northern Trust Corp.		15,216		706,631
NYSE Euronext		18,386		460,569
PHH Corp. *		6,340		110,633
Raymond James Financial, Inc.		7,794		274,349
SEI Investments Co.		11,412		248,211
SLM Corp.		36,138		569,174
State Street Corp.		34,870		1,450,592
Stifel Financial Corp. *		3,804		124,315
T. Rowe Price Group, Inc.		17,752		1,090,683
TD Ameritrade Holding Corp.		16,484		282,041
The Bank of New York Mellon Corp.		83,740		1,887,500
The Charles Schwab Corp. (b)		72,622		979,671
The Goldman Sachs Group, Inc.		29,164		3,083,218
The NASDAQ OMX Group, Inc.		10,778		246,493
Waddell & Reed Financial, Inc., Class A		5,706		168,898
Walter Investment Management Corp.		1,960		54,860
WisdomTree Investments, Inc. *		7,608		47,474
World Acceptance Corp. *		1,268		92,564

				53,238,969

26 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Energy 10.3%
Alpha Natural Resources, Inc. *		13,948		82,851
Anadarko Petroleum Corp.		34,870		2,415,445
Apache Corp.		27,262		2,337,716
Approach Resources, Inc. *		1,465		42,104
Arch Coal, Inc. (a)		14,582		89,096
Atwood Oceanics, Inc. *		3,804		176,049
Baker Hughes, Inc.		30,432		1,387,699
Berry Petroleum Co., Class A		3,804		140,139
Bill Barrett Corp. *		4,438		97,325
Bristow Group, Inc.		3,170		148,641
C&J Energy Services, Inc. *(a)		3,105		62,504
Cabot Oil & Gas Corp.		15,216		630,094
Cameron International Corp. *		17,752		971,212
CARBO Ceramics, Inc. (a)		1,902		133,863
Carrizo Oil & Gas, Inc. *		2,536		64,009
Cheniere Energy, Inc. *		13,314		196,515
Chesapeake Energy Corp.		45,014		871,021
Chevron Corp.		138,212		15,501,858
Cimarex Energy Co.		6,340		362,711
Clayton Williams Energy, Inc. *		634		30,464
Clean Energy Fuels Corp. *(a)		4,438		58,315
Cloud Peak Energy, Inc. *		4,438		78,064
Cobalt International Energy, Inc. *		13,022		295,730
Comstock Resources, Inc. *		3,170		52,273
Concho Resources, Inc. *		7,608		682,742
ConocoPhillips		88,760		5,040,680
CONSOL Energy, Inc.		15,339		463,238
Contango Oil & Gas Co. *		634		35,206
Continental Resources, Inc. *		4,004		296,536
Crosstex Energy, Inc.		3,772		46,773
CVR Energy, Inc. *		1,268		37,812
Denbury Resources, Inc. *		27,311		423,047
Devon Energy Corp.		26,628		1,539,897
Diamond Offshore Drilling, Inc.		4,438		297,435
Dresser-Rand Group, Inc. *		5,221		264,287
Dril-Quip, Inc. *		3,170		222,027
Energen Corp.		5,072		258,926
Energy Partners Ltd. *		3,200		55,104
EOG Resources, Inc.		19,020		2,059,866
EQT Corp.		10,778		581,581
EXCO Resources, Inc. (a)		10,778		73,829
Exterran Holdings, Inc. *		4,466		82,130
Exxon Mobil Corp.		327,767		28,614,059
FMC Technologies, Inc. *		16,672		780,916
Forest Oil Corp. *		7,608		56,375
Forum Energy Technologies, Inc. *		1,268		30,014
Gulfmark Offshore, Inc., Class A *		1,902		66,722
Gulfport Energy Corp. *		3,190		83,897
Halliburton Co.		64,668		2,118,524
Helix Energy Solutions Group, Inc. *		6,974		122,882
Helmerich & Payne, Inc.		6,974		318,293
Hercules Offshore, Inc. *		11,344		46,624
Hess Corp.		21,556		1,089,225
HollyFrontier Corp.		13,460		542,303
Hornbeck Offshore Services, Inc. *		2,536		98,498
ION Geophysical Corp. *		12,046		78,660
Key Energy Services, Inc. *		12,046		95,284
Kinder Morgan, Inc.		33,602		1,201,943
KiOR, Inc., Class A *(a)		5,546		42,427
Kodiak Oil & Gas Corp. *		17,154		153,357
Laredo Petroleum Holdings, Inc. *		2,168		47,176
Lufkin Industries, Inc.		2,536		132,937
Magnum Hunter Resources Corp. *		8,932		38,408
Marathon Oil Corp.		50,086		1,393,392
Marathon Petroleum Corp.		23,700		1,226,475
McDermott International, Inc. *		16,484		183,632
McMoRan Exploration Co. *(a)		9,756		123,218
Murphy Oil Corp.		13,314		683,408
Nabors Industries Ltd. *		20,922		309,018
National-Oilwell Varco, Inc.		29,798		2,348,082
Newfield Exploration Co. *		9,510		310,311
Newpark Resources, Inc. *		6,370		43,826
Noble Corp. *		17,995		686,329
Noble Energy, Inc.		12,680		1,114,572
Northern Oil and Gas, Inc. *		4,438		72,517
Oasis Petroleum, Inc. *		5,072		148,762
Occidental Petroleum Corp.		57,060		4,850,671
Oceaneering International, Inc.		7,608		407,332
Oil States International, Inc. *		3,470		271,493
OYO Geospace Corp. *		720		65,945
Parker Drilling Co. *		8,189		33,902
Patterson-UTI Energy, Inc.		11,412		173,348
PDC Energy, Inc. *		2,536		70,577
Peabody Energy Corp.		19,654		425,116
Phillips 66		43,112		1,810,704
Pioneer Energy Services Corp. *		8,242		63,463
Pioneer Natural Resources Co.		8,876		864,167
Plains Exploration & Production Co. *		9,004		354,037
QEP Resources, Inc.		12,210		350,305
Quicksilver Resources, Inc. *(a)		9,614		32,688
Range Resources Corp.		11,412		743,948
Rentech, Inc. *		25,800		56,760
Resolute Energy Corp. *		5,780		52,251
Rex Energy Corp. *		5,160		63,932
Rosetta Resources, Inc. *		4,438		190,568
Rowan Cos. plc, Class A *		8,876		312,258
RPC, Inc. (a)		3,486		42,703
SandRidge Energy, Inc. *		24,747		162,588
Schlumberger Ltd.		93,832		6,791,560
SEACOR Holdings, Inc. *		1,268		109,061
SemGroup Corp., Class A *		3,170		112,662
Ship Finance International Ltd. (a)		3,936		63,527
SM Energy Co.		4,438		209,607
Solazyme, Inc. *		3,820		45,802
Southwestern Energy Co. *		24,092		749,984
Spectra Energy Corp.		45,014		1,272,096
Stone Energy Corp. *		4,794		112,803
Sunoco, Inc.		8,242		388,940
Superior Energy Services, Inc. *		11,078		230,090
Swift Energy Co. *		2,536		49,427
Targa Resources Corp.		2,536		114,805
Teekay Corp.		2,782		82,292
Tesoro Corp.		10,144		403,123
TETRA Technologies, Inc. *		5,665		36,313
The Williams Cos., Inc.		43,556		1,405,552
Tidewater, Inc.		3,804		180,424
Ultra Petroleum Corp. *(a)		10,778		221,596
Unit Corp. *		3,170		126,103
VAALCO Energy, Inc. *		5,780		42,830
Valero Energy Corp.		39,308		1,228,768
W&T Offshore, Inc.		2,536		43,771

See financial notes 27

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Weatherford International Ltd. *		52,622		618,835
Western Refining, Inc.		4,438		124,131
Whiting Petroleum Corp. *		8,876		395,159
World Fuel Services Corp.		5,072		188,729
WPX Energy, Inc. *		13,493		210,491

				110,046,117

Food & Staples Retailing 2.1%
Casey’s General Stores, Inc.		3,170		179,263
Costco Wholesale Corp.		30,432		2,978,380
CVS Caremark Corp.		90,028		4,100,775
Harris Teeter Supermarkets, Inc.		2,694		105,255
PriceSmart, Inc.		1,268		92,741
Rite Aid Corp. *		42,746		50,868
Safeway, Inc. (a)		16,703		261,402
Spartan Stores, Inc.		2,580		39,500
Sysco Corp.		41,210		1,248,663
The Andersons, Inc.		1,902		76,403
The Fresh Market, Inc. *		2,536		146,378
The Kroger Co.		36,431		811,683
United Natural Foods, Inc. *		3,170		182,212
Wal-Mart Stores, Inc.		122,362		8,883,481
Walgreen Co.		61,010		2,181,718
Weis Markets, Inc.		1,268		53,446
Whole Foods Market, Inc.		11,412		1,104,111

				22,496,279

Food, Beverage & Tobacco 5.6%
Altria Group, Inc.		143,284		4,865,925
Archer-Daniels-Midland Co.		42,874		1,146,879
B&G Foods, Inc.		3,804		111,343
Beam, Inc.		10,778		629,004
Brown-Forman Corp., Class B		11,412		731,509
Bunge Ltd.		10,144		645,666
Campbell Soup Co.		14,582		512,411
Coca-Cola Enterprises, Inc.		20,844		615,523
ConAgra Foods, Inc.		28,674		720,004
Constellation Brands, Inc., Class A *		13,948		459,447
Darling International, Inc. *		8,242		136,982
Dean Foods Co. *		12,046		197,795
Dr. Pepper Snapple Group, Inc.		14,755		661,172
Flowers Foods, Inc.		10,144		209,474
Fresh Del Monte Produce, Inc.		3,170		78,299
General Mills, Inc.		43,112		1,695,595
Green Mountain Coffee Roasters, Inc. *(a)		8,242		200,363
H.J. Heinz Co.		22,824		1,271,753
Hillshire Brands Co.		8,260		215,338
Hormel Foods Corp.		10,144		291,336
Ingredion, Inc.		5,706		307,154
J&J Snack Foods Corp.		1,320		75,372
Kellogg Co.		17,118		867,027
Kraft Foods, Inc., Class A		123,630		5,134,354
Lancaster Colony Corp.		1,280		92,723
Lorillard, Inc.		9,510		1,193,600
McCormick & Co., Inc. Non Voting Shares		8,876		545,341
Mead Johnson Nutrition Co.		14,582		1,069,298
Molson Coors Brewing Co., Class B		10,778		480,052
Monster Beverage Corp. *		10,778		635,148
PepsiCo, Inc.		109,682		7,944,267
Philip Morris International, Inc.		121,094		10,813,694
Post Holdings, Inc. *		1,902		56,775
Ralcorp Holdings, Inc. *		3,804		269,932
Reynolds American, Inc.		23,052		1,062,697
Sanderson Farms, Inc.		1,902		83,726
Smart Balance, Inc. *		3,170		36,740
Smithfield Foods, Inc. *		10,778		208,231
Snyders-Lance, Inc.		3,804		88,976
Star Scientific, Inc. *(a)		9,510		35,758
The Boston Beer Co., Inc., Class A *(a)		634		65,321
The Coca-Cola Co.		292,908		10,954,759
The Hain Celestial Group, Inc. *		3,170		218,698
The Hershey Co.		10,778		774,076
The J.M. Smucker Co.		8,242		700,323
Tootsie Roll Industries, Inc. (a)		1,956		49,624
TreeHouse Foods, Inc. *		2,536		131,745
Tyson Foods, Inc., Class A		19,654		307,782
Universal Corp.		1,902		90,212
Vector Group Ltd. (a)		3,583		60,947

				59,750,170

Health Care Equipment & Services 4.0%
Abaxis, Inc. *		1,879		70,406
ABIOMED, Inc. *		2,367		52,855
Accretive Health, Inc. *(a)		5,072		60,306
Aetna, Inc.		24,238		930,982
Air Methods Corp. *		748		87,172
Alere, Inc. *		5,706		107,159
Align Technology, Inc. *		4,346		147,547
Allscripts Healthcare Solutions, Inc. *		13,314		139,797
AMERIGROUP Corp. *		3,317		301,582
AmerisourceBergen Corp.		17,660		680,263
AmSurg Corp. *		2,160		63,526
Analogic Corp.		838		58,249
ArthroCare Corp. *		3,170		93,769
athenahealth, Inc. *		2,536		224,106
Baxter International, Inc.		38,674		2,269,390
Becton, Dickinson & Co.		13,314		1,011,598
Bio-Reference Labs, Inc. *		1,840		48,061
Boston Scientific Corp. *		105,878		571,741
Brookdale Senior Living, Inc. *		6,340		137,768
C.R. Bard, Inc.		5,820		571,000
Cantel Medical Corp.		1,540		39,670
Cardinal Health, Inc.		24,726		977,913
CareFusion Corp. *		15,850		416,379
Centene Corp. *		3,804		154,480
Cerner Corp. *		10,144		741,932
Chemed Corp.		1,902		125,589
CIGNA Corp.		20,416		934,440
Community Health Systems, Inc. *		6,974		188,577
Computer Programs & Systems, Inc.		831		42,007
CONMED Corp.		1,939		52,392
Coventry Health Care, Inc.		10,778		448,688
Covidien plc		33,602		1,883,392
Cyberonics, Inc. *		2,536		126,622
DaVita, Inc. *		6,974		678,361
DENTSPLY International, Inc.		10,144		367,923
Dexcom, Inc. *		5,706		75,890

28 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Edwards Lifesciences Corp. *		8,242		841,591
Emeritus Corp. *		4,438		88,849
Endologix, Inc. *		3,925		46,982
Express Scripts Holding Co. *		56,426		3,533,396
Haemonetics Corp. *		1,902		140,120
Hanger, Inc. *		2,435		69,665
HCA Holdings, Inc.		12,046		343,913
Health Management Associates, Inc., Class A *		18,386		140,837
Health Net, Inc. *		6,974		162,145
HEALTHSOUTH Corp. *		6,340		145,186
Henry Schein, Inc. *		6,340		486,975
Hill-Rom Holdings, Inc.		4,438		123,066
HMS Holdings Corp. *		5,880		202,625
Hologic, Inc. *		17,752		348,472
Humana, Inc.		11,412		799,753
ICU Medical, Inc. *		820		45,510
IDEXX Laboratories, Inc. *		3,818		362,939
Insulet Corp. *		3,170		66,475
Integra LifeSciences Holdings Corp. *		1,916		75,375
Intuitive Surgical, Inc. *		2,725		1,340,128
IPC The Hospitalist Co. *		1,120		49,493
Kindred Healthcare, Inc. *		6,340		70,754
Laboratory Corp. of America Holdings *		6,974		613,363
LifePoint Hospitals, Inc. *		3,804		153,758
Magellan Health Services, Inc. *		2,536		125,811
MAKO Surgical Corp. *(a)		3,170		52,242
Masimo Corp. *		3,804		83,992
McKesson Corp.		16,484		1,435,921
MedAssets, Inc. *		3,830		65,378
Medidata Solutions, Inc. *		1,879		65,915
MEDNAX, Inc. *		3,170		219,618
Medtronic, Inc.		72,910		2,964,521
Meridian Bioscience, Inc.		4,438		78,464
Merit Medical Systems, Inc. *		3,170		45,173
Molina Healthcare, Inc. *		2,091		50,686
MWI Veterinary Supply, Inc. *		1,268		127,840
Neogen Corp. *		1,902		74,254
NuVasive, Inc. *		3,357		70,766
NxStage Medical, Inc. *		3,804		48,501
Omnicare, Inc.		8,242		266,876
OraSure Technologies, Inc. *		2,536		24,625
Orthofix International N.V. *		1,306		55,270
Owens & Minor, Inc.		4,438		124,220
Patterson Cos., Inc.		6,974		236,907
PSS World Medical, Inc. *		4,438		95,816
Quality Systems, Inc.		3,804		67,217
Quest Diagnostics, Inc.		10,778		651,746
ResMed, Inc. *		10,144		381,110
Select Medical Holdings Corp. *		5,940		61,479
Sirona Dental Systems, Inc. *		4,566		242,637
St. Jude Medical, Inc.		22,139		835,969
STERIS Corp.		3,804		130,249
Stryker Corp.		20,922		1,114,306
Sunrise Senior Living, Inc. *		5,088		73,165
Team Health Holdings, Inc. *		3,170		90,504
Teleflex, Inc.		3,170		209,315
Tenet Healthcare Corp. *		34,236		177,685
The Cooper Cos., Inc.		3,170		265,804
Thoratec Corp. *		3,804		128,918
Triple-S Management Corp., Class B *		2,215		45,275
UnitedHealth Group, Inc.		72,910		3,959,013
Universal American Corp. *		5,706		51,639
Universal Health Services, Inc., Class B		6,340		253,283
Vanguard Health Systems, Inc. *		4,932		48,087
Varian Medical Systems, Inc. *		7,813		459,326
VCA Antech, Inc. *		5,706		110,354
Volcano Corp. *		3,804		107,577
WellCare Health Plans, Inc. *		3,170		179,707
WellPoint, Inc.		23,458		1,404,430
West Pharmaceutical Services, Inc.		2,536		120,080
Wright Medical Group, Inc. *		3,804		78,743
Zimmer Holdings, Inc.		12,680		783,370

				43,476,686

Household & Personal Products 2.1%
Avon Products, Inc.		29,798		460,379
Church & Dwight Co., Inc.		10,144		555,283
Colgate-Palmolive Co.		31,066		3,302,626
Elizabeth Arden, Inc. *		2,536		118,025
Energizer Holdings, Inc.		4,552		313,633
Herbalife Ltd.		8,242		398,830
Kimberly-Clark Corp.		27,885		2,331,186
Nu Skin Enterprises, Inc., Class A		4,438		184,133
Prestige Brands Holdings, Inc., Class A *		3,463		55,616
Spectrum Brands Holdings, Inc.		1,710		62,979
The Clorox Co.		9,510		691,853
The Estee Lauder Cos., Inc., Class A		16,484		988,216
The Procter & Gamble Co.		192,736		12,949,932
WD-40 Co.		1,062		51,836

				22,464,527

Insurance 3.8%
ACE Ltd.		23,458		1,729,558
Aflac, Inc.		32,968		1,522,462
Alleghany Corp. *		1,268		427,506
Allied World Assurance Co. Holdings AG		2,536		199,152
American Equity Investment Life Holding Co.		4,403		50,899
American Financial Group, Inc.		6,340		238,130
American International Group, Inc. *		50,720		1,741,218
American National Insurance Co.		1,268		89,635
AmTrust Financial Services, Inc.		2,092		54,536
Aon plc		22,845		1,187,026
Arch Capital Group Ltd. *		9,510		379,544
Argo Group International Holdings Ltd.		2,536		74,964
Arthur J. Gallagher & Co.		8,208		293,190
Aspen Insurance Holdings Ltd.		5,072		147,494
Assurant, Inc.		6,548		230,817
Assured Guaranty Ltd.		11,486		151,615
Axis Capital Holdings Ltd.		10,144		345,606
Berkshire Hathaway, Inc., Class B *		133,774		11,282,499
Brown & Brown, Inc.		8,242		216,270
Cincinnati Financial Corp.		10,778		416,678
CNA Financial Corp.		2,552		66,658

See financial notes 29

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
CNO Financial Group, Inc.		15,218		135,440
Employers Holdings, Inc.		2,536		46,231
Endurance Specialty Holdings Ltd.		3,804		143,829
Enstar Group Ltd. *		634		58,620
Erie Indemnity Co., Class A		1,916		122,183
Everest Re Group Ltd.		3,170		328,602
FBL Financial Group, Inc., Class A		1,540		51,005
Fidelity National Financial, Inc., Class A		16,484		310,559
First American Financial Corp.		7,608		146,606
Genworth Financial, Inc., Class A *		33,602		177,755
Greenlight Capital Re Ltd., Class A *		1,902		46,181
Hanover Insurance Group, Inc.		3,804		135,765
Hartford Financial Services Group, Inc.		30,521		547,242
HCC Insurance Holdings, Inc.		7,608		251,673
Horace Mann Educators Corp.		3,141		55,187
Infinity Property & Casualty Corp.		634		35,567
Kemper Corp.		3,804		116,402
Lincoln National Corp.		20,922		485,809
Loews Corp.		24,726		1,005,112
Markel Corp. *		634		275,727
Marsh & McLennan Cos., Inc.		37,637		1,286,056
MBIA, Inc. *(a)		10,656		115,937
Mercury General Corp.		2,536		97,103
MetLife, Inc.		57,694		1,969,096
Montpelier Re Holdings Ltd.		5,706		123,021
National Financial Partners Corp. *		3,170		46,726
Old Republic International Corp.		16,628		143,500
OneBeacon Insurance Group Ltd., Class A		3,080		39,763
PartnerRe Ltd.		4,622		339,255
Platinum Underwriters Holdings Ltd.		3,170		125,976
Primerica, Inc.		3,170		92,437
Principal Financial Group, Inc.		19,696		540,458
ProAssurance Corp.		2,016		179,888
Protective Life Corp.		5,706		161,195
Prudential Financial, Inc.		33,602		1,831,645
Reinsurance Group of America, Inc.		5,072		297,929
RenaissanceRe Holdings Ltd.		3,804		293,859
RLI Corp.		1,268		80,340
Safety Insurance Group, Inc.		1,268		57,428
Selective Insurance Group, Inc.		3,804		68,206
StanCorp Financial Group, Inc.		3,170		98,967
Symetra Financial Corp.		5,399		65,976
The Allstate Corp.		32,242		1,201,982
The Chubb Corp.		19,192		1,418,097
The Navigators Group, Inc. *		640		31,078
The Progressive Corp.		39,719		775,712
The Travelers Cos., Inc.		27,318		1,768,567
Torchmark Corp.		7,182		367,575
Tower Group, Inc.		2,536		47,271
Unum Group		20,170		393,517
Validus Holdings Ltd.		5,992		200,792
W.R. Berkley Corp.		7,752		289,770
White Mountains Insurance Group Ltd.		412		214,380
XL Group plc		21,712		501,981

				40,586,435

Materials 3.8%
A. Schulman, Inc.		1,268		30,800
Air Products & Chemicals, Inc.		13,948		1,151,826
Airgas, Inc.		4,552		378,135
AK Steel Holding Corp. (a)		7,562		39,474
Albemarle Corp.		6,340		346,988
Alcoa, Inc.		73,848		632,139
Allegheny Technologies, Inc.		6,974		206,709
Allied Nevada Gold Corp. *		5,706		185,901
AMCOL International Corp.		1,826		54,908
American Vanguard Corp.		1,640		48,249
AptarGroup, Inc.		4,438		224,785
Ashland, Inc.		5,072		373,451
Balchem Corp.		2,536		92,513
Ball Corp.		10,920		460,496
Bemis Co., Inc.		7,608		230,218
Boise, Inc.		8,242		62,062
Buckeye Technologies, Inc.		3,170		96,114
Cabot Corp.		4,438		154,576
Calgon Carbon Corp. *		3,874		52,880
Carpenter Technology Corp.		3,170		149,814
Celanese Corp., Series A		11,412		436,623
CF Industries Holdings, Inc.		4,552		942,310
Chemtura Corp. *		7,608		125,760
Clearwater Paper Corp. *		1,902		71,743
Cliffs Natural Resources, Inc.		10,144		363,561
Coeur d’Alene Mines Corp. *		6,340		145,757
Commercial Metals Co.		8,242		105,003
Compass Minerals International, Inc.		2,536		182,136
Crown Holdings, Inc. *		11,412		413,685
Cytec Industries, Inc.		3,170		217,050
Deltic Timber Corp.		862		52,875
Domtar Corp.		2,536		183,708
E.I. du Pont de Nemours & Co.		65,302		3,248,774
Eagle Materials, Inc.		3,804		162,241
Eastman Chemical Co.		10,778		595,592
Ecolab, Inc.		18,386		1,177,256
FMC Corp.		10,144		551,022
Freeport-McMoRan Copper & Gold, Inc.		65,936		2,380,949
Georgia Gulf Corp.		2,336		92,599
Globe Specialty Metals, Inc.		3,633		53,005
Graphic Packaging Holding Co. *		8,942		49,986
Greif, Inc., Class A		2,536		112,852
H.B. Fuller Co.		3,412		103,759
Haynes International, Inc.		1,268		61,815
Hecla Mining Co.		17,752		96,038
Huntsman Corp.		12,680		182,338
Innophos Holdings, Inc.		1,902		89,946
International Flavors & Fragrances, Inc.		5,706		345,327
International Paper Co.		28,530		985,997
Intrepid Potash, Inc. *		3,804		85,324
Kaiser Aluminum Corp.		1,268		70,818
KapStone Paper and Packaging Corp. *		3,190		63,896
Koppers Holdings, Inc.		1,902		61,644
Kraton Performance Polymers, Inc. *		2,200		47,190
Louisiana-Pacific Corp. *		9,510		127,624
LSB Industries, Inc. *		1,270		47,879

30 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
LyondellBasell Industries N.V., Class A		24,726		1,207,618
Martin Marietta Materials, Inc. (a)		3,170		242,125
McEwen Mining, Inc. *		10,778		42,681
MeadWestvaco Corp.		12,046		346,443
Minerals Technologies, Inc.		1,282		86,932
Molycorp, Inc. *(a)		3,804		43,784
Monsanto Co.		37,406		3,258,437
Myers Industries, Inc.		2,536		37,533
NewMarket Corp.		660		162,439
Newmont Mining Corp.		34,044		1,725,350
Nucor Corp.		20,288		763,843
Olin Corp.		6,340		135,866
OM Group, Inc. *		1,902		35,073
Owens-Illinois, Inc. *		12,046		210,564
P.H. Glatfelter Co.		2,980		50,064
Packaging Corp. of America		6,974		223,307
PolyOne Corp.		6,340		100,045
PPG Industries, Inc.		10,778		1,185,796
Praxair, Inc.		20,922		2,207,271
Quaker Chemical Corp.		1,268		59,659
Reliance Steel & Aluminum Co.		5,706		293,460
Resolute Forest Products *(a)		5,072		63,755
Rock-Tenn Co., Class A		5,213		348,072
Rockwood Holdings, Inc.		5,072		240,108
Royal Gold, Inc.		4,113		362,026
RPM International, Inc.		9,510		260,669
RTI International Metals, Inc. *		2,060		44,681
Schnitzer Steel Industries, Inc., Class A		1,902		52,533
Schweitzer-Mauduit International, Inc.		2,536		81,862
Sealed Air Corp.		13,948		199,038
Sensient Technologies Corp.		3,804		136,373
Sigma-Aldrich Corp.		7,608		540,396
Silgan Holdings, Inc.		3,271		137,153
Sonoco Products Co.		6,974		213,335
Southern Copper Corp.		12,167		395,914
Steel Dynamics, Inc.		15,216		185,940
Stepan Co.		634		60,560
Stillwater Mining Co. *		7,990		84,135
SunCoke Energy, Inc. *		4,310		68,184
Texas Industries, Inc. *(a)		2,536		98,803
The Dow Chemical Co.		83,326		2,442,285
The Mosaic Co.		18,386		1,064,733
The Scotts Miracle-Gro Co., Class A		3,170		132,030
The Sherwin-Williams Co.		6,340		907,127
The Valspar Corp.		6,340		338,176
Titanium Metals Corp.		6,974		85,362
United States Steel Corp. (a)		10,144		197,301
Valhi, Inc.		1,902		23,984
Vulcan Materials Co.		7,608		296,103
W.R. Grace & Co. *		4,438		256,339
Walter Energy, Inc.		4,438		145,123
Westlake Chemical Corp.		1,902		130,820
Worthington Industries, Inc.		4,470		93,423

				41,110,753

Media 3.4%
AMC Networks, Inc., Class A *		4,438		174,591
Arbitron, Inc.		1,902		66,893
Belo Corp., Class A		6,974		50,910
Cablevision Systems Corp., Class A		16,484		246,436
CBS Corp., Class B Non Voting Shares		42,506		1,544,668
Charter Communications, Inc., Class A *		3,170		246,626
Cinemark Holdings, Inc.		6,798		159,209
Comcast Corp., Class A		188,932		6,334,890
DIRECTV *		45,661		2,378,481
Discovery Communications, Inc., Series A *		18,386		1,008,288
DISH Network Corp., Class A		15,216		486,760
DreamWorks Animation SKG, Inc., Class A *(a)		5,072		86,072
Gannett Co., Inc.		17,752		270,896
John Wiley & Sons, Inc., Class A		3,570		176,144
Lamar Advertising Co., Class A *		4,438		146,987
Liberty Global, Inc., Series A *		17,752		981,153
Liberty Media Corp. - Liberty Capital, Series A *		8,242		859,476
Live Nation Entertainment, Inc. *		9,601		81,801
Meredith Corp. (a)		3,170		103,215
Morningstar, Inc.		1,902		112,998
National CineMedia, Inc.		4,466		64,757
News Corp., Class A		152,794		3,573,852
Omnicom Group, Inc.		19,167		984,609
Pandora Media, Inc. *(a)		4,545		54,495
Regal Entertainment Group, Class A (a)		5,706		79,313
Scholastic Corp.		1,670		51,018
Scripps Networks Interactive, Class A		6,340		374,694
Sirius XM Radio, Inc. *		274,522		694,541
The Interpublic Group of Cos., Inc.		33,602		357,525
The Madison Square Garden Co., Class A *		3,857		162,804
The McGraw-Hill Cos., Inc.		19,348		990,618
The New York Times Co., Class A *		11,412		104,876
The Walt Disney Co.		116,656		5,770,972
The Washington Post Co., Class B		312		109,980
Time Warner Cable, Inc.		22,192		1,971,093
Time Warner, Inc.		67,204		2,792,326
Valassis Communications, Inc. *(a)		3,170		79,472
Viacom, Inc., Class B		34,944		1,747,549
Virgin Media, Inc.		20,288		559,340

				36,040,328

Pharmaceuticals, Biotechnology & Life Sciences 7.6%
Abbott Laboratories		110,316		7,230,111
Achillion Pharmaceuticals, Inc. *		4,815		33,849
Acorda Therapeutics, Inc. *		4,438		101,408
Agilent Technologies, Inc.		24,092		895,259
Akorn, Inc. *		4,529		62,681
Alexion Pharmaceuticals, Inc. *		13,314		1,427,394
Alkermes plc *		6,974		127,973
Allergan, Inc.		21,556		1,856,618
Alnylam Pharmaceuticals, Inc. *		4,270		78,098
Amgen, Inc.		54,524		4,575,654
Arena Pharmaceuticals, Inc. *(a)		13,620		123,125
ARIAD Pharmaceuticals, Inc. *		12,680		260,701
Arqule, Inc. *		3,804		19,933

See financial notes 31

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Auxilium Pharmaceuticals, Inc. *		3,170		73,861
AVEO Pharmaceuticals, Inc. *(a)		4,160		39,894
Bio-Rad Laboratories, Inc., Class A *		1,268		127,282
Biogen Idec, Inc. *		17,118		2,509,328
BioMarin Pharmaceutical, Inc. *		7,608		284,083
Bristol-Myers Squibb Co.		118,558		3,913,600
Bruker Corp. *		5,706		69,100
Celgene Corp. *		31,066		2,237,995
Cepheid, Inc. *		5,072		191,417
Charles River Laboratories International, Inc. *		4,438		161,188
Clovis Oncology, Inc. *(a)		2,060		36,029
Covance, Inc. *		4,438		212,092
Cubist Pharmaceuticals, Inc. *		4,438		205,036
Dendreon Corp. *(a)		10,778		48,393
Dynavax Technologies Corp. *		12,382		48,414
Eli Lilly & Co.		68,472		3,075,077
Emergent Biosolutions, Inc. *		3,265		48,093
Endo Health Solutions, Inc. *		8,242		262,260
Exact Sciences Corp. *		4,020		39,919
Exelixis, Inc. *(a)		10,185		45,120
Forest Laboratories, Inc. *		17,752		615,817
Genomic Health, Inc. *		1,666		57,410
Gilead Sciences, Inc. *		52,622		3,035,763
Halozyme Therapeutics, Inc. *		6,340		36,772
Hospira, Inc. *		11,412		383,215
Idenix Pharmaceuticals, Inc. *		5,706		32,239
Illumina, Inc. *		8,876		373,502
ImmunoGen, Inc. *		5,706		82,109
Impax Laboratories, Inc. *		5,710		135,156
Incyte Corp. *(a)		6,896		137,989
InterMune, Inc. *		5,706		42,053
Ironwood Pharmaceuticals, Inc. *		6,496		81,395
Isis Pharmaceuticals, Inc. *		6,543		89,050
Jazz Pharmaceuticals plc *		3,205		145,860
Johnson & Johnson		192,091		12,952,696
Lexicon Pharmaceuticals, Inc. *		30,595		68,533
Life Technologies Corp. *		12,680		604,963
Luminex Corp. *		3,170		61,308
Medicis Pharmaceutical Corp., Class A		4,438		140,063
Medivation, Inc. *		2,536		265,925
Merck & Co., Inc.		213,024		9,170,683
Merrimack Pharmaceuticals, Inc. *(a)		6,080		48,397
Mettler-Toledo International, Inc. *		2,536		418,719
Momenta Pharmaceuticals, Inc. *		3,456		48,764
Mylan, Inc. *		29,164		687,395
Myriad Genetics, Inc. *		6,340		158,437
Nektar Therapeutics *(a)		9,510		81,596
Neurocrine Biosciences, Inc. *		5,160		38,081
NPS Pharmaceuticals, Inc. *		7,723		58,849
Onyx Pharmaceuticals, Inc. *		4,438		319,181
Opko Health, Inc. *(a)		11,412		50,669
Optimer Pharmaceuticals, Inc. *(a)		4,031		60,586
Par Pharmaceutical Cos., Inc. *		3,170		157,866
PAREXEL International Corp. *		4,438		127,770
PDL BioPharma, Inc.		12,680		93,325
PerkinElmer, Inc.		8,876		242,315
Perrigo Co.		5,920		651,022
Pfizer, Inc.		524,937		12,524,997
Pharmacyclics, Inc. *		3,804		254,564
Questcor Pharmaceuticals, Inc. *(a)		4,438		192,787
Regeneron Pharmaceuticals, Inc. *		5,086		752,982
Rigel Pharmaceuticals, Inc. *		5,797		54,028
Sagent Pharmaceuticals, Inc. *		2,496		36,092
Salix Pharmaceuticals Ltd. *		3,804		167,224
Seattle Genetics, Inc. *(a)		7,015		186,178
Spectrum Pharmaceuticals, Inc. *(a)		4,438		53,078
Synageva BioPharma Corp. *		1,562		78,038
Techne Corp.		2,536		173,894
The Medicines Co. *		3,846		98,804
Theravance, Inc. *		5,197		138,604
Thermo Fisher Scientific, Inc.		25,994		1,490,756
United Therapeutics Corp. *		3,804		205,872
Vertex Pharmaceuticals, Inc. *		14,582		777,658
ViroPharma, Inc. *		5,128		136,405
VIVUS, Inc. *		6,340		135,993
Warner Chilcott plc, Class A		13,086		178,231
Waters Corp. *		6,340		508,405
Watson Pharmaceuticals, Inc. *		8,890		723,201

				81,044,249

Real Estate 3.7%
Acadia Realty Trust		2,536		63,146
Alexander & Baldwin, Inc. *		3,170		93,895
Alexander’s, Inc.		199		89,478
Alexandria Real Estate Equities, Inc.		4,438		327,968
American Assets Trust, Inc.		2,362		64,388
American Campus Communities, Inc.		6,340		295,571
American Capital Agency Corp.		23,458		817,277
American Capital Mortgage Investment Corp.		2,260		55,890
American Realty Capital Trust, Inc.		11,412		134,662
American Tower Corp.		27,896		1,963,878
Annaly Capital Management, Inc.		69,106		1,196,225
Anworth Mortgage Asset Corp.		13,948		95,683
Apartment Investment & Management Co., Class A		8,876		235,036
ARMOUR Residential REIT, Inc.		19,678		146,798
Ashford Hospitality Trust		5,072		41,996
Associated Estates Realty Corp.		3,141		47,775
AvalonBay Communities, Inc.		6,974		986,960
BioMed Realty Trust, Inc.		10,778		199,716
Boston Properties, Inc.		10,778		1,208,537
Brandywine Realty Trust		10,778		131,492
BRE Properties, Inc.		5,072		253,194
Brookfield Office Properties, Inc. (a)		18,386		307,782
Camden Property Trust		5,706		396,168
Capstead Mortgage Corp.		7,608		109,099
CBL & Associates Properties, Inc.		12,046		257,423
CBRE Group, Inc., Class A *		20,299		351,376
Chesapeake Lodging Trust		1,902		35,434
Chimera Investment Corp.		68,562		174,147
Colonial Properties Trust		6,340		138,973
Colony Financial, Inc.		2,372		45,566
CommonWealth REIT		6,340		94,910
Coresite Realty Corp.		1,268		34,477
Corporate Office Properties Trust		4,968		111,084
Cousins Properties, Inc.		7,196		57,496
CreXus Investment Corp.		4,740		48,727
CubeSmart		7,608		98,143

32 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
CYS Investments, Inc.		9,510		136,754
DCT Industrial Trust, Inc.		21,556		136,234
DDR Corp.		17,118		260,536
DiamondRock Hospitality Co.		13,352		128,446
Digital Realty Trust, Inc.		8,876		661,351
Douglas Emmett, Inc.		8,876		212,935
Duke Realty Corp.		18,530		268,685
DuPont Fabros Technology, Inc.		4,438		122,311
EastGroup Properties, Inc.		2,536		135,930
Education Realty Trust, Inc.		7,608		87,948
Entertainment Properties Trust		3,170		144,520
Equity Lifestyle Properties, Inc.		3,170		217,969
Equity One, Inc.		4,260		90,312
Equity Residential		20,982		1,267,313
Essex Property Trust, Inc.		2,536		385,421
Extra Space Storage, Inc.		6,974		237,883
Federal Realty Investment Trust		4,438		478,905
FelCor Lodging Trust, Inc. *		8,876		41,185
First Industrial Realty Trust, Inc. *		6,340		81,786
First Potomac Realty Trust		3,500		44,835
Forest City Enterprises, Inc., Class A *		11,412		172,093
Franklin Street Properties Corp.		5,706		63,451
General Growth Properties, Inc.		27,262		561,052
Glimcher Realty Trust		9,510		99,665
Government Properties Income Trust		3,179		71,814
Hatteras Financial Corp.		6,340		183,797
HCP, Inc.		29,164		1,337,461
Health Care REIT, Inc.		14,614		854,042
Healthcare Realty Trust, Inc.		5,072		123,047
Healthcare Trust of America, Inc.		4,020		37,788
Hersha Hospitality Trust		10,422		51,902
Highwoods Properties, Inc.		5,072		165,398
Home Properties, Inc.		3,804		242,885
Hospitality Properties Trust		8,876		213,645
Host Hotels & Resorts, Inc.		49,068		750,740
Inland Real Estate Corp.		5,360		43,952
Invesco Mortgage Capital		7,608		155,888
Investors Real Estate Trust		5,980		49,933
Jones Lang LaSalle, Inc.		3,170		228,652
Kennedy-Wilson Holdings, Inc.		3,170		43,873
Kilroy Realty Corp.		5,072		239,449
Kimco Realty Corp.		28,530		579,730
LaSalle Hotel Properties		5,706		155,489
Lexington Realty Trust		13,948		130,832
Liberty Property Trust		7,608		280,583
LTC Properties, Inc.		3,170		106,956
Mack-Cali Realty Corp.		6,026		160,894
Medical Properties Trust, Inc.		8,242		84,975
MFA Financial, Inc.		24,726		202,506
Mid-America Apartment Communities, Inc.		2,836		192,848
National Health Investors, Inc.		1,609		84,054
National Retail Properties, Inc.		6,340		196,920
NorthStar Realty Finance Corp.		9,280		54,474
OMEGA Healthcare Investors, Inc.		7,608		182,744
Pebblebrook Hotel Trust		3,518		83,130
Pennsylvania REIT		4,438		69,765
Pennymac Mortgage Investment Trust		2,880		62,035
Piedmont Office Realty Trust, Inc., Class A		12,680		215,180
Plum Creek Timber Co., Inc.		11,412		467,093
Post Properties, Inc.		3,804		194,194
Potlatch Corp.		3,170		114,310
ProLogis, Inc.		32,968		1,126,517
PS Business Parks, Inc.		1,902		129,659
Public Storage		10,144		1,476,561
Ramco-Gershenson Properties Trust		3,170		41,083
Rayonier, Inc.		8,876		434,835
Realty Income Corp.		9,510		400,656
Redwood Trust, Inc.		6,974		99,937
Regency Centers Corp.		6,340		310,660
Retail Opportunity Investments Corp.		3,500		43,995
Retail Properties of America, Inc., Class A		6,342		71,157
RLJ Lodging Trust		3,804		67,863
Sabra Healthcare REIT, Inc.		2,580		49,459
Saul Centers, Inc.		989		42,636
Senior Housing Properties Trust		11,412		252,433
Simon Property Group, Inc.		20,402		3,237,797
SL Green Realty Corp.		6,340		511,004
Sovran Self Storage, Inc.		1,910		108,584
Starwood Property Trust, Inc.		8,242		194,099
Strategic Hotels & Resorts, Inc. *		12,680		77,348
Sun Communities, Inc.		1,914		87,680
Sunstone Hotel Investors, Inc. *		8,340		86,986
Tanger Factory Outlet Centers		5,958		199,891
Taubman Centers, Inc.		4,438		355,129
The Howard Hughes Corp. *		1,902		125,133
The Macerich Co.		9,510		566,511
The St. Joe Co. *(a)		6,974		133,692
Two Harbors Investment Corp.		19,020		220,442
UDR, Inc.		16,484		416,221
Universal Health Realty Income Trust		1,268		54,740
Ventas, Inc.		20,288		1,328,661
Vornado Realty Trust		12,680		1,029,236
Washington REIT		4,438		119,205
Weingarten Realty Investors		8,876		247,907
Weyerhaeuser Co.		36,772		915,991
Zillow, Inc., ClassA *(a)		1,220		50,764

				39,775,340

Retailing 4.3%
Aaron’s, Inc.		5,706		170,438
Abercrombie & Fitch Co., Class A		5,706		205,359
Advance Auto Parts, Inc.		5,086		361,716
Aeropostale, Inc. *		5,706		79,485
Amazon.com, Inc. *		24,726		6,137,735
American Eagle Outfitters, Inc.		12,680		282,003
Ann, Inc. *		3,921		139,509
Asbury Automotive Group, Inc. *		2,228		61,693
Ascena Retail Group, Inc. *		10,144		200,851
AutoNation, Inc. *(a)		2,536		101,947
AutoZone, Inc. *		2,102		760,167
Barnes & Noble, Inc. *(a)		2,880		34,474
Bed Bath & Beyond, Inc. *		16,484		1,107,230
Best Buy Co., Inc.		19,654		348,662

See financial notes 33

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Big Lots, Inc. *		4,566		138,989
Brown Shoe Co., Inc.		3,816		57,278
Cabela’s, Inc. *		3,452		165,731
CarMax, Inc. *		15,850		484,852
Chico’s FAS, Inc.		12,680		240,159
Collective Brands, Inc. *		4,290		92,836
Core-Mark Holding Co., Inc.		634		28,872
Dick’s Sporting Goods, Inc.		6,340		315,478
Dillard’s, Inc., Class A		2,536		190,403
Dollar General Corp. *		15,276		780,145
Dollar Tree, Inc. *		16,544		796,925
DSW, Inc., Class A		1,696		109,426
Expedia, Inc.		7,242		371,949
Express, Inc. *		5,024		78,425
Family Dollar Stores, Inc.		7,692		489,519
Foot Locker, Inc.		11,412		394,513
GameStop Corp., Class A (a)		10,778		205,644
Genesco, Inc. *		1,902		134,376
Genuine Parts Co.		10,778		680,739
GNC Holdings, Inc., Class A		5,706		221,678
Group 1 Automotive, Inc.		1,902		104,629
Groupon, Inc. *(a)		22,570		93,666
Guess?, Inc.		5,716		148,959
Hibbett Sports, Inc. *		2,536		147,189
HomeAway, Inc. *(a)		2,045		48,385
HSN, Inc.		3,804		171,294
J.C. Penney Co., Inc.		11,412		297,625
Jos. A. Bank Clothiers, Inc. *		2,536		122,159
Kohl’s Corp.		16,601		866,572
Liberty Interactive Corp., Series A *		41,210		751,670
Liberty Ventures, Series A *		2,059		94,682
Limited Brands, Inc.		17,752		862,747
Lithia Motors, Inc., Class A		1,268		37,038
LKQ Corp. *		10,144		382,835
Lowe’s Cos., Inc.		84,322		2,401,491
Lumber Liquidators Holdings, Inc. *		1,640		76,522
Macy’s, Inc.		29,798		1,201,157
Monro Muffler Brake, Inc.		2,112		71,491
Netflix, Inc. *(a)		3,804		227,175
Nordstrom, Inc.		12,046		696,620
O’Reilly Automotive, Inc. *		8,917		757,499
Penske Automotive Group, Inc.		2,890		76,990
PetSmart, Inc.		7,751		549,701
Pier 1 Imports, Inc.		7,608		140,596
Pool Corp.		3,804		149,840
Priceline.com, Inc. *		3,494		2,112,368
RadioShack Corp. (a)		6,974		16,947
Rent-A-Center, Inc.		4,069		143,554
Ross Stores, Inc.		16,058		1,111,053
Saks, Inc. *(a)		10,778		126,642
Sally Beauty Holdings, Inc. *		10,778		296,395
Sears Holdings Corp. *(a)		3,804		200,661
Select Comfort Corp. *		4,438		126,794
Shutterfly, Inc. *		2,552		75,922
Signet Jewelers Ltd.		5,706		261,677
Sonic Automotive, Inc., Class A		3,180		56,827
Stage Stores, Inc.		2,536		54,321
Staples, Inc.		47,550		519,246
Target Corp.		41,844		2,681,782
The Buckle, Inc. (a)		1,902		86,617
The Cato Corp., Class A		1,921		56,420
The Children’s Place Retail Stores, Inc. *		2,536		144,400
The Finish Line, Inc., Class A		3,614		82,977
The Gap, Inc.		23,743		850,474
The Home Depot, Inc.		107,780		6,116,515
The Men’s Wearhouse, Inc.		3,804		120,206
The Pep Boys-Manny, Moe & Jack		3,610		32,454
The TJX Cos., Inc.		51,988		2,380,531
Tiffany & Co.		8,876		549,868
Tractor Supply Co.		5,072		484,275
TripAdvisor, Inc. *		7,242		242,172
Ulta Salon, Cosmetics & Fragrance, Inc.		4,004		376,376
Urban Outfitters, Inc. *		7,950		298,443
Vitamin Shoppe, Inc. *		2,536		135,955
Williams-Sonoma, Inc.		6,974		286,073
Zumiez, Inc. *		2,536		74,026

				46,549,709

Semiconductors & Semiconductor Equipment 2.3%
Advanced Micro Devices, Inc. *		44,380		165,094
Altera Corp.		22,824		852,020
Amkor Technology, Inc. *(a)		8,183		38,378
Analog Devices, Inc.		20,922		831,440
Applied Materials, Inc.		89,992		1,052,006
Atmel Corp. *		31,700		187,981
ATMI, Inc. *		2,536		47,956
Broadcom Corp., Class A *		32,968		1,171,353
Brooks Automation, Inc.		5,072		40,627
Cabot Microelectronics Corp.		1,902		63,280
Cavium, Inc. *		3,356		108,399
CEVA, Inc. *		1,902		30,660
Cirrus Logic, Inc. *		5,173		215,559
Cree, Inc. *		8,886		250,585
Cymer, Inc. *		2,536		143,791
Cypress Semiconductor Corp. *		12,046		139,854
Diodes, Inc. *		2,536		46,891
Entegris, Inc. *		9,510		83,593
Fairchild Semiconductor International, Inc. *		8,836		128,299
First Solar, Inc. *(a)		3,804		76,042
GT Advanced Technologies, Inc. *		8,876		51,481
Hittite Microwave Corp. *		2,536		132,810
Integrated Device Technology, Inc. *		17,118		91,068
Intel Corp.		352,504		8,752,674
International Rectifier Corp. *		5,072		88,304
Intersil Corp., Class A		8,242		72,777
KLA-Tencor Corp.		12,046		618,080
Kulicke & Soffa Industries, Inc. *		5,706		64,649
Lam Research Corp. *		14,073		480,311
Lattice Semiconductor Corp. *		8,242		32,061
Linear Technology Corp.		15,216		502,508
LSI Corp. *		45,014		350,659
M/A-COM Technology Solutions Holdings, Inc. *		2,460		28,339
Marvell Technology Group Ltd.		36,772		374,339
Maxim Integrated Products, Inc.		21,556		585,030
MEMC Electronic Materials, Inc. *		17,172		46,021
Microchip Technology, Inc.		13,314		462,662
Micron Technology, Inc. *		67,929		421,839
Microsemi Corp. *		6,974		138,852

34 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
MKS Instruments, Inc.		3,804		103,126
Monolithic Power Systems, Inc. *		2,360		50,882
NVIDIA Corp. *		43,050		603,992
OmniVision Technologies, Inc. *		4,044		65,715
ON Semiconductor Corp. *		30,432		189,591
PMC-Sierra, Inc. *		15,216		89,014
Power Integrations, Inc.		1,930		66,855
Rambus, Inc. *		7,608		32,562
RF Micro Devices, Inc. *		24,726		92,723
Semtech Corp. *		5,072		124,365
Silicon Laboratories, Inc. *		3,170		121,221
Skyworks Solutions, Inc. *		13,314		405,544
SunPower Corp. *		7,215		32,323
Teradyne, Inc. *		12,680		198,062
Tessera Technologies, Inc.		3,804		58,087
Texas Instruments, Inc.		80,518		2,338,243
TriQuint Semiconductor, Inc. *		11,412		63,451
Ultratech, Inc. *		2,536		83,637
Veeco Instruments, Inc. *(a)		2,683		92,027
Volterra Semiconductor Corp. *		3,170		75,541
Xilinx, Inc.		18,176		616,348

				24,471,581

Software & Services 9.5%
Accenture plc, Class A		48,818		3,007,189
ACI Worldwide, Inc. *		2,726		118,254
Activision Blizzard, Inc.		29,164		342,969
Acxiom Corp. *		6,340		108,160
Adobe Systems, Inc. *		34,323		1,073,280
Advent Software, Inc. *		2,536		60,255
Akamai Technologies, Inc. *		12,680		475,627
Alliance Data Systems Corp. *		3,804		523,621
Ancestry.com, Inc. *(a)		2,187		67,972
Angie’s List, Inc. *(a)		3,365		32,169
ANSYS, Inc. *		6,974		486,088
AOL, Inc. *		7,032		236,767
Ariba, Inc. *		6,974		311,668
Aspen Technology, Inc. *		5,706		139,112
Autodesk, Inc. *		15,850		492,142
Automatic Data Processing, Inc.		34,870		2,025,250
Bankrate, Inc. *		3,190		54,804
Bazaarvoice, Inc. *(a)		3,323		49,313
Blackbaud, Inc.		4,438		108,198
BMC Software, Inc. *		10,500		434,700
Booz Allen Hamilton Holding Corp.		2,963		54,401
Bottomline Technologies, Inc. *		3,170		71,135
Broadridge Financial Solutions, Inc.		8,897		210,681
BroadSoft, Inc. *		1,902		68,871
CA, Inc.		25,285		658,169
CACI International, Inc., Class A *		1,902		101,548
Cadence Design Systems, Inc. *		18,386		242,695
Cardtronics, Inc. *		3,170		89,552
Citrix Systems, Inc. *		13,314		1,034,365
Cognizant Technology Solutions Corp., Class A *		21,556		1,385,620
CommVault Systems, Inc. *		3,170		159,831
Computer Sciences Corp.		10,778		347,159
Compuware Corp. *		16,484		164,840
comScore, Inc. *		2,510		35,441
Comverse Technology, Inc. *		12,680		76,080
Concur Technologies, Inc. *		3,170		229,508
Constant Contact, Inc. *		2,040		39,882
Convergys Corp.		8,876		137,667
CoreLogic, Inc. *		8,876		218,350
Cornerstone OnDemand, Inc. *		2,340		62,735
CoStar Group, Inc. *		1,902		154,537
CSG Systems International, Inc. *		2,536		53,789
DealerTrack Holdings, Inc. *		2,536		70,222
Digital River, Inc. *		3,141		52,329
DST Systems, Inc.		2,536		129,032
EarthLink, Inc.		12,046		80,467
eBay, Inc. *		77,348		3,671,710
Ebix, Inc. (a)		1,902		45,629
Electronic Arts, Inc. *		22,824		304,244
Equinix, Inc. *		3,249		642,165
Euronet Worldwide, Inc. *		3,804		67,559
ExactTarget, Inc. *(a)		1,840		38,953
Exlservice Holdings, Inc. *		1,902		49,015
Facebook, Inc., Class A *(a)		36,794		665,236
FactSet Research Systems, Inc.		3,170		292,496
Fair Isaac Corp.		2,358		100,710
Fidelity National Information Services, Inc.		17,752		559,188
Fiserv, Inc. *		9,524		679,156
FleetCor Technologies, Inc. *		3,136		135,412
Fortinet, Inc. *		8,954		237,371
Gartner, Inc. *		6,340		313,133
Genpact Ltd. *		8,242		150,416
Global Payments, Inc.		5,614		233,823
Google, Inc., Class A *		17,752		12,161,718
Guidewire Software, Inc. *		2,310		65,950
Heartland Payment Systems, Inc.		2,501		75,980
Higher One Holdings, Inc. *(a)		3,321		40,948
IAC/InterActiveCorp		5,706		295,799
iGate Corp. *		2,987		48,121
Informatica Corp. *		7,574		246,912
International Business Machines Corp.		77,337		15,069,114
Intuit, Inc.		19,020		1,113,431
j2 Global, Inc.		3,291		96,986
Jack Henry & Associates, Inc.		6,340		234,326
JDA Software Group, Inc. *		3,804		117,163
Jive Software, Inc. *(a)		2,172		32,775
Kenexa Corp. *		1,879		86,133
Lender Processing Services, Inc.		6,340		177,964
LinkedIn Corp., Class A *		4,438		476,197
Liquidity Services, Inc. *		1,902		99,646
LivePerson, Inc. *		3,324		54,846
LogMeIn, Inc. *		1,902		41,806
Manhattan Associates, Inc. *		1,902		96,203
ManTech International Corp., Class A		1,902		42,605
MasterCard, Inc., Class A		7,254		3,067,717
MAXIMUS, Inc.		2,321		126,239
Mentor Graphics Corp. *		5,706		94,320
MICROS Systems, Inc. *		5,706		289,066
Microsoft Corp.		523,673		16,139,602
MicroStrategy, Inc., Class A *		634		79,573
Millennial Media, Inc. *(a)		4,348		50,132
MoneyGram International, Inc. *		2,937		46,845
Monotype Imaging Holdings, Inc. *		2,536		38,268
Monster Worldwide, Inc. *		9,570		66,703
Netscout Systems, Inc. *		2,414		57,333

See financial notes 35

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
NetSuite, Inc. *		2,536		144,248
NeuStar, Inc., Class A *		5,072		190,555
NIC, Inc.		3,804		54,892
Nuance Communications, Inc. *		16,236		387,229
OpenTable, Inc. *(a)		1,268		53,827
Oracle Corp.		267,548		8,467,894
Parametric Technology Corp. *		7,608		161,670
Paychex, Inc.		22,824		759,126
Pegasystems, Inc.		1,390		37,572
Progress Software Corp. *		4,282		82,343
QLIK Technologies, Inc. *		5,358		113,322
Quest Software, Inc. *		4,046		113,086
Rackspace Hosting, Inc. *		7,608		456,328
RealPage, Inc. *(a)		4,088		104,285
Red Hat, Inc. *		13,314		746,117
Rovi Corp. *		7,608		116,707
SAIC, Inc.		23,784		290,403
Salesforce.com, Inc. *		8,876		1,288,618
Sapient Corp. *		7,542		76,250
ServiceSource International, Inc. *		3,093		28,641
Solarwinds, Inc. *		3,981		218,477
Solera Holdings, Inc.		4,438		182,535
Sourcefire, Inc. *		1,902		98,695
Splunk, Inc. *		1,340		46,096
SS&C Technologies Holdings, Inc. *		2,499		55,428
Symantec Corp. *		50,669		903,428
Synchronoss Technologies, Inc. *		2,536		58,353
Synopsys, Inc. *		9,510		314,115
Syntel, Inc.		1,044		60,865
Take-Two Interactive Software, Inc. *		6,340		64,985
TeleTech Holdings, Inc. *		2,606		43,025
Teradata Corp. *		12,046		920,073
The Active Network, Inc. *		3,103		34,940
The Ultimate Software Group, Inc. *		1,902		188,659
TIBCO Software, Inc. *		12,680		379,386
TiVo, Inc. *		9,510		86,446
Total System Services, Inc.		13,948		323,315
Tyler Technologies, Inc. *		2,536		102,099
Unisys Corp. *		3,170		66,982
ValueClick, Inc. *		5,706		92,780
Vantiv, Inc., Class A *		1,902		42,909
VeriFone Systems, Inc. *		7,608		264,302
Verint Systems, Inc. *		1,838		52,622
VeriSign, Inc. *		11,412		544,124
VirnetX Holding Corp. *(a)		2,878		74,857
Visa, Inc., Class A		37,406		4,797,319
VistaPrint N.V. *(a)		3,170		114,342
VMware, Inc., Class A *		4,524		402,817
Web.com Group, Inc. *		2,536		42,224
WebMD Health Corp. *		2,536		37,888
Websense, Inc. *		2,699		41,511
Western Union Co.		43,112		759,202
Wright Express Corp. *		3,170		208,713
Yahoo!, Inc. *		82,275		1,205,329
Yelp, Inc. *(a)		2,060		45,320
Zynga, Inc., Class A *		6,340		17,752

				101,558,107

Technology Hardware & Equipment 7.7%
3D Systems Corp. *(a)		2,536		110,849
Acme Packet, Inc. *		3,804		72,618
ADTRAN, Inc.		4,438		90,047
Aeroflex Holding Corp. *		4,648		33,001
Amphenol Corp., Class A		11,412		694,648
Anixter International, Inc.		2,536		152,490
Apple, Inc.		64,988		43,232,617
Arris Group, Inc. *		9,510		129,621
Arrow Electronics, Inc. *		8,876		321,755
Aruba Networks, Inc. *		6,974		137,039
Avnet, Inc. *		10,778		347,159
AVX Corp.		3,976		40,714
Badger Meter, Inc.		1,120		37,979
Benchmark Electronics, Inc. *		6,340		101,757
Brightpoint, Inc. *		5,072		45,496
Brocade Communications Systems, Inc. *		28,530		165,474
Ciena Corp. *		6,340		86,668
Cisco Systems, Inc.		376,596		7,185,452
Cognex Corp.		3,170		114,405
Coherent, Inc. *		1,902		89,565
Comtech Telecommunications Corp.		1,410		39,649
Corning, Inc.		105,742		1,267,847
Dell, Inc. *		110,018		1,165,091
Diebold, Inc.		4,438		144,590
Dolby Laboratories, Inc., Class A *		3,804		126,217
EchoStar Corp., Class A *		2,810		75,898
Electronics for Imaging, Inc. *		3,170		48,977
EMC Corp. *		147,722		3,883,611
Emulex Corp. *		9,510		65,144
F5 Networks, Inc. *		5,706		556,278
FARO Technologies, Inc. *		1,902		75,034
FEI Co.		2,607		140,022
Finisar Corp. *		6,340		87,112
FLIR Systems, Inc.		10,778		213,404
Fusion-io, Inc. *(a)		4,442		124,465
Harmonic, Inc. *		10,320		47,162
Harris Corp.		8,876		417,438
Hewlett-Packard Co.		139,480		2,354,422
Infinera Corp. *		12,680		72,022
Ingram Micro, Inc., Class A *		10,778		164,580
Insight Enterprises, Inc. *		3,170		56,933
InterDigital, Inc.		3,170		106,988
InvenSense, Inc. *(a)		2,920		36,734
IPG Photonics Corp. *		3,170		194,923
Itron, Inc. *		2,536		109,961
Ixia *		3,843		57,030
Jabil Circuit, Inc.		13,948		317,735
JDS Uniphase Corp. *		17,118		191,550
Juniper Networks, Inc. *		37,406		652,361
Lexmark International, Inc., Class A (a)		5,072		110,113
Littelfuse, Inc.		1,268		65,036
Loral Space & Communications, Inc.		1,268		93,097
Measurement Specialties, Inc. *		1,220		39,626
Molex, Inc.		10,144		269,323
Motorola Solutions, Inc.		20,936		997,810
MTS Systems Corp.		1,065		54,113
Multi-Fineline Electronix, Inc. *		1,540		37,730
National Instruments Corp.		6,974		179,650
NCR Corp. *		10,778		241,319
NetApp, Inc. *		25,994		897,313
NETGEAR, Inc. *		2,536		92,742
OSI Systems, Inc. *		1,902		140,938

36 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Park Electrochemical Corp.		1,640		42,607
Plantronics, Inc.		3,804		135,651
Plexus Corp. *		2,444		73,051
Polycom, Inc. *		11,412		118,913
Power-One, Inc. *		9,800		60,172
QLogic Corp. *		8,876		108,021
QUALCOMM, Inc.		120,460		7,403,472
RealD, Inc. *(a)		3,400		33,694
Riverbed Technology, Inc. *		10,144		202,779
Rofin-Sinar Technologies, Inc. *		2,095		45,524
Rogers Corp. *		1,120		44,565
SanDisk Corp. *		17,118		705,604
Sanmina-SCI Corp. *		5,072		43,822
ScanSource, Inc. *		1,844		55,763
Seagate Technology plc		26,684		854,155
Sonus Networks, Inc. *		18,269		35,259
Stratasys, Inc. *		1,458		94,274
Super Micro Computer, Inc. *		2,580		31,811
Synaptics, Inc. *		2,536		77,145
SYNNEX Corp. *		1,724		59,530
TE Connectivity Ltd.		30,436		1,070,434
Tech Data Corp. *		3,170		153,999
Tellabs, Inc.		24,726		87,777
Trimble Navigation Ltd. *		8,642		423,890
TTM Technologies, Inc. *		4,369		46,311
Ubiquiti Networks, Inc. *(a)		2,044		24,569
Universal Display Corp. *(a)		3,170		127,973
ViaSat, Inc. *		3,170		122,679
Vishay Intertechnology, Inc. *		9,981		95,418
Western Digital Corp. *		15,850		662,847
Xerox Corp.		97,002		714,905
Zebra Technologies Corp., Class A *		3,804		141,851

				83,099,807

Telecommunication Services 2.8%
AT&T, Inc.		411,466		15,076,114
Atlantic Tele-Network, Inc.		1,220		45,970
CenturyLink, Inc.		43,112		1,821,913
Cincinnati Bell, Inc. *		13,948		65,416
Clearwire Corp., Class A *(a)		25,122		40,195
Cogent Communications Group, Inc.		3,170		62,132
Consolidated Communications Holdings, Inc. (a)		1,902		30,964
Crown Castle International Corp. *		19,020		1,207,009
Frontier Communications Corp. (a)	��	69,106		319,270
Iridium Communications, Inc. *		5,883		43,593
Level 3 Communications, Inc. *		11,412		245,929
MetroPCS Communications, Inc. *		25,360		246,753
Neutral Tandem, Inc. *		3,920		43,120
NII Holdings, Inc. *		11,412		71,211
NTELOS Holdings Corp.		2,060		35,370
Premiere Global Services, Inc. *		4,438		41,096
SBA Communications Corp., Class A *		8,242		492,707
Shenandoah Telecommunications Co.		3,920		60,290
Sprint Nextel Corp. *		209,220		1,014,717
Telephone & Data Systems, Inc.		8,242		202,094
tw telecom, Inc. *		12,046		302,957
United States Cellular Corp. *		1,189		45,122
USA Mobility, Inc.		3,920		44,727
Verizon Communications, Inc.		197,808		8,493,875
Vonage Holdings Corp. *		24,780		53,029
Windstream Corp. (a)		41,210		406,743

				30,512,316

Transportation 1.8%
Alaska Air Group, Inc. *		5,072		170,166
Allegiant Travel Co. *		1,268		83,992
AMERCO		634		58,994
Atlas Air Worldwide Holdings, Inc. *		1,902		97,953
Avis Budget Group, Inc. *		6,612		108,569
C.H. Robinson Worldwide, Inc.		11,412		646,033
Con-way, Inc.		3,890		117,906
CSX Corp.		72,976		1,639,041
Delta Air Lines, Inc. *		58,734		508,049
Dollar Thrifty Automotive Group, Inc. *(a)		1,902		165,778
Expeditors International of Washington, Inc.		14,582		533,847
FedEx Corp.		20,922		1,833,395
Forward Air Corp.		2,536		85,260
Genesee & Wyoming, Inc., Class A *		3,170		201,485
Heartland Express, Inc.		3,675		47,848
Hertz Global Holdings, Inc. *		16,408		232,665
Hub Group, Inc., Class A *		2,664		80,186
J.B. Hunt Transport Services, Inc.		6,974		365,717
JetBlue Airways Corp. *		19,654		96,305
Kansas City Southern		7,632		590,183
Kirby Corp. *		3,804		200,281
Knight Transportation, Inc.		3,170		45,331
Landstar System, Inc.		3,804		179,815
Matson, Inc.		3,170		71,927
Norfolk Southern Corp.		22,941		1,662,305
Old Dominion Freight Line, Inc. *		4,438		198,734
Ryder System, Inc.		3,804		152,198
SkyWest, Inc.		6,974		61,162
Southwest Airlines Co.		51,988		464,773
Swift Transporation Co. *		5,742		46,797
Union Pacific Corp.		33,602		4,080,627
United Continental Holdings, Inc. *		22,259		410,678
United Parcel Service, Inc., Class B		51,354		3,790,439
US Airways Group, Inc. *		11,412		121,652
UTI Worldwide, Inc.		7,608		104,458
Werner Enterprises, Inc.		5,072		112,852
Wesco Aircraft Holdings, Inc. *		3,446		48,037
Zipcar, Inc. *(a)		3,804		30,052

				19,445,490

Utilities 3.6%
AGL Resources, Inc.		7,705		305,503
ALLETE, Inc.		3,170		131,745
Alliant Energy Corp.		7,608		335,361
Ameren Corp.		16,942		554,342
American Electric Power Co., Inc.		34,236		1,471,806
American States Water Co.		1,268		55,259
American Water Works Co., Inc.		12,049		444,247
Aqua America, Inc.		9,510		237,750
Atmos Energy Corp.		6,340		221,520
Avista Corp.		5,072		128,829
Black Hills Corp.		2,560		87,552

See financial notes 37

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
California Water Service Group		5,072		92,767
Calpine Corp. *		25,994		456,195
CenterPoint Energy, Inc.		27,262		555,872
CH Energy Group, Inc.		1,268		82,623
Cleco Corp.		3,804		155,698
CMS Energy Corp.		18,238		420,751
Consolidated Edison, Inc.		20,288		1,229,859
Dominion Resources, Inc.		39,636		2,080,097
DTE Energy Co.		11,412		666,461
Duke Energy Corp.		48,807		3,161,717
Edison International		20,922		916,174
El Paso Electric Co.		3,170		104,895
Entergy Corp.		12,275		835,682
Exelon Corp.		59,596		2,173,466
FirstEnergy Corp.		29,164		1,274,467
GenOn Energy, Inc. *		53,993		136,602
Great Plains Energy, Inc.		8,876		189,236
Hawaiian Electric Industries, Inc.		6,340		168,200
IDACORP, Inc.		3,804		157,676
Integrys Energy Group, Inc.		5,472		295,433
ITC Holdings Corp.		3,804		273,812
MDU Resources Group, Inc.		11,412		245,929
MGE Energy, Inc.		1,596		78,906
National Fuel Gas Co.		5,792		289,021
New Jersey Resources Corp.		3,170		142,048
NextEra Energy, Inc.		29,164		1,963,029
NiSource, Inc.		19,740		480,472
Northeast Utilities		22,175		835,332
Northwest Natural Gas Co.		2,536		124,695
NorthWestern Corp.		2,536		92,818
NRG Energy, Inc.		18,386		392,357
NV Energy, Inc.		15,850		278,009
OGE Energy Corp.		6,840		369,702
ONEOK, Inc.		13,948		621,104
Ormat Technologies, Inc.		1,960		37,220
Otter Tail Corp.		2,258		51,121
Pepco Holdings, Inc.		15,216		293,821
PG&E Corp.		29,411		1,276,732
Piedmont Natural Gas Co., Inc.		4,438		138,599
Pinnacle West Capital Corp.		7,608		390,823
PNM Resources, Inc.		5,022		103,303
Portland General Electric Co.		5,072		136,132
PPL Corp.		40,576		1,190,094
Public Service Enterprise Group, Inc.		35,504		1,124,057
Questar Corp.		11,412		225,387
SCANA Corp.		8,876		420,367
Sempra Energy		15,850		1,049,270
SJW Corp.		1,740		40,681
South Jersey Industries, Inc.		2,536		128,372
Southwest Gas Corp.		3,170		135,518
TECO Energy, Inc.		13,314		231,131
The AES Corp. *		44,791		510,169
The Empire District Electric Co.		2,892		61,050
The Laclede Group, Inc.		1,268		53,573
The Southern Co.		60,864		2,758,965
UGI Corp.		7,608		231,892
UIL Holdings Corp.		3,487		122,673
UNS Energy Corp.		2,536		101,592
Vectren Corp.		5,706		160,966
Westar Energy, Inc.		8,728		254,159
WGL Holdings, Inc.		3,804		148,508
Wisconsin Energy Corp.		16,484		625,733
Xcel Energy, Inc.		33,788		942,347

				38,259,274

Total Common Stock
(Cost $968,388,235)				1,069,865,776




Rights 0.0% of net assets

Retailing 0.0%
Liberty Ventures *(c)(d)		679		—

Total Rights
(Cost $4,273)				—




Other Investment Company 0.1% of net assets

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund		611,006		611,006

Total Other Investment Company
(Cost $611,006)				611,006



End of Investments



Collateral Invested for Securities on Loan 0.5% of net assets


State Street Institutional U.S. Government Money Market Fund		5,433,292		5,433,292

Total Collateral Invested for Securities on Loan
(Cost $5,433,292)				5,433,292



End of Collateral Invested for Securities on Loan

At 08/31/12, the tax basis cost of the fund’s investments was $969,273,933 and the unrealized appreciation and depreciation were $151,158,596 and ($49,955,747), respectively, with a net unrealized appreciation of $101,202,849.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Issuer is affiliated with the fund’s adviser.
(c)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(d)		Illiquid security. At the period end, the value of these amounted to $0 or 0% of net assets.


REIT —		Real Estate Investment Trust

38 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2012 (see financial note 2(a) for additional information):


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

Common Stock¹		$1,069,865,776		$—		$—		$1,069,865,776
Other Investment Company¹		611,006		—		—		611,006
Rights¹		—		—		—		—

Total		$1,070,476,782		$—		$—		$1,070,476,782

Other Financial Instruments
Collateral Invested for Securities on Loan		$5,433,292		$—		$—		$5,433,292


¹		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

Balance

Change in

Balance

as of

Realized

Unrealized

Gross

as of

August 31,

Gains

Gross

Transfers

August 31,

Investments in Securities

2011

(Losses)

Purchases

Sales

out

2012

Rights

$—

($4,273

)

$4,273

$—

Total

$—

($4,273

)

$4,273

$—

All net realized and change in unrealized gains (losses) on Level 3 investments in the tables above are reflected on the accompanying Statement of Operations. Changes in net unrealized gains (losses) for Level 3 Investments held by the fund at August 31, 2012 are ($4,273).

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended August 31, 2012.

See financial notes 39

Schwab U.S. Broad Market ETF

Statement of

Assets and Liabilities

As of August 31, 2012



Assets

Investments in affiliated issuers, at value (cost $1,198,801)		$979,671
Investments in unaffiliated issuers, at value (cost $967,804,713) including securities on loan of $5,362,076	+	1,069,497,111

Total investments, at value (cost $969,003,514)		1,070,476,782
Collateral invested for securities on loan		5,433,292
Receivables:
Dividends		2,315,746
Fund shares sold		1,692,150
Income from securities on loan		22,173
Foreign tax reclaims		1,276
Interest	+	18

Total assets		1,079,941,437

Liabilities

Collateral held for securities on loan		5,433,292
Payables:
Investments bought		1,677,453
Investment adviser fees	+	5,297

Total liabilities		7,116,042

Net Assets

Total assets		1,079,941,437
Total liabilities	—	7,116,042

Net assets		$1,072,825,395

Net Assets by Source
Capital received from investors		970,531,198
Net investment income not yet distributed		4,010,063
Net realized capital losses		(3,189,134	)
Net unrealized capital gains		101,473,268

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$1,072,825,395

31,700,000

$33.84

40 See financial notes

Schwab U.S. Broad Market ETF

Statement of

Operations

For September 1, 2011 through August 31, 2012



Investment Income

Dividends received from affiliated issuer		$16,205
Dividends received from unaffiliated issuers (net of foreign withholding tax of $20,573)		19,106,051
Interest		388
Securities on loan	+	161,472

Total investment income		19,284,116

Expenses

Investment adviser fees		545,254

Total expenses	−	545,254

Net investment income		18,738,862

Realized and Unrealized Gains (Losses)

Net realized gains on affiliated issuer		6,675
Net realized losses on unaffiliated investments		(3,346,022	)
Net realized gains on in-kind redemptions	+	16,926,932

Net realized gains		13,587,585
Net unrealized gains on affiliated issuer		53,382
Net unrealized gains on unaffiliated investments	+	107,818,555

Net unrealized gains	+	107,871,937

Net realized and unrealized gains		121,459,522

Net increase in net assets resulting from operations		$140,198,384

See financial notes 41

Schwab U.S. Broad Market ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/11-8/31/12				9/1/10-8/31/11
Net investment income		$18,738,862			$10,833,300
Net realized gains		13,587,585			18,489,482
Net unrealized gains	+	107,871,937			13,988,597

Net increase in net assets resulting from operations		140,198,384			43,311,379

Distributions to Shareholders

Distributions from net investment income		($16,859,390	)		($9,531,396	)

Transactions in Fund Shares

9/1/11-8/31/12

9/1/10-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares sold

9,500,000

$299,666,505

17,450,000

$531,212,810

Shares redeemed

(3,000,001

)

(92,831,011

)

(3,100,000

)

(94,832,267

)

Net transactions in fund shares

6,499,999

$206,835,494

14,350,000

$436,380,543

Shares Outstanding and Net Assets

9/1/11-8/31/12

9/1/10-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

25,200,001

$742,650,907

10,850,001

$272,490,381

Total increase

6,499,999

330,174,488

14,350,000

470,160,526

End of period

31,700,000

$1,072,825,395

25,200,001

$742,650,907

Net investment income not yet distributed

$4,010,063

$2,268,867

42 See financial notes

Schwab U.S. Large-Cap ETF™

Financial Statements

Financial Highlights


	9/1/11–			9/1/10–			10/30/09¹–
	8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		29.11			24.98			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.64			0.53			0.34
Net realized and unrealized gains (losses)		4.35			4.13			(0.12	)

Total from investment operations		4.99			4.66			0.22
Less distributions:
Distributions from net investment income		(0.61	)		(0.53	)		(0.24	)

Net asset value at end of period		33.49			29.11			24.98

Total return (%)		17.36			18.66			0.83	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.08			0.08			0.08	³
Gross operating expenses		0.08			0.08			0.08	³
Net investment income (loss)		2.10			1.88			2.01	³
Portfolio turnover rate⁴		4			5			3	²
Net assets, end of period ($ x 1,000)		890,808			615,781			273,503

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 43

Schwab U.S. Large-Cap ETF

Portfolio Holdings as of August 31, 2012

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		792,380,201		888,442,866
	0	.0%	Rights		3,999		—
	0	.0%	Other Investment Company		284,948		284,948


	99	.8%	Total Investments		792,669,148		888,727,814
	0	.2%	Collateral Invested for Securities on Loan		1,864,672		1,864,672
		—%	Other Assets and Liabilities, Net				215,424


	100	.0%	Net Assets				890,807,910


	Number		Value
Security	of Shares		($)

Common Stock 99.8% of net assets

Automobiles & Components 0.7%
Allison Transmission Holdings, Inc. (a)		2,660		47,268
BorgWarner, Inc. *		7,980		548,864
Ford Motor Co.		245,252		2,290,654
General Motors Co. *		37,240		795,074
Gentex Corp.		9,175		160,746
Harley-Davidson, Inc.		14,957		627,596
Johnson Controls, Inc.		43,752		1,190,492
Lear Corp.		6,384		247,891
The Goodyear Tire & Rubber Co. *		15,448		188,465
TRW Automotive Holdings Corp. *		6,432		281,143
Visteon Corp. *		3,210		147,724

				6,525,917

Banks 2.9%
BB&T Corp.		44,727		1,410,690
BOK Financial Corp.		1,622		93,379
CIT Group, Inc. *		12,866		485,820
City National Corp.		3,194		164,012
Comerica, Inc.		13,325		409,211
Commerce Bancshares, Inc.		6,384		256,828
Cullen/Frost Bankers, Inc.		3,724		207,054
Fifth Third Bancorp		58,973		892,851
First Republic Bank		4,934		161,292
Hudson City Bancorp, Inc.		31,966		229,835
Huntington Bancshares, Inc.		61,712		407,299
KeyCorp		60,649		511,271
M&T Bank Corp.		7,981		693,549
New York Community Bancorp, Inc. (a)		28,318		375,497
People’s United Financial, Inc.		23,820		285,125
PNC Financial Services Group, Inc.		34,048		2,116,424
Regions Financial Corp.		90,972		633,165
SunTrust Banks, Inc.		34,580		870,379
TFS Financial Corp. *		5,630		49,769
U.S. Bancorp		124,488		4,159,144
Wells Fargo & Co.		324,520		11,043,416
Zions Bancorp.		11,704		225,302

				25,681,312

Capital Goods 7.5%
3M Co.		41,496		3,842,530
Aecom Technology Corp. *		6,430		124,678
AGCO Corp. *		6,384		268,703
AMETEK, Inc.		15,362		527,070
B/E Aerospace, Inc. *		6,384		257,020
Caterpillar, Inc.		38,304		3,268,480
Cooper Industries plc		10,108		739,400
Cummins, Inc.		11,172		1,084,913
Danaher Corp.		37,759		2,022,750
Deere & Co.		26,068		1,957,967
Donaldson Co., Inc.		9,576		337,937
Dover Corp.		11,786		681,349
Eaton Corp.		21,280		951,642
Emerson Electric Co.		47,348		2,401,491
Engility Holdings, Inc. *		1,064		19,695
Fastenal Co.		19,152		825,260
Flowserve Corp.		3,729		476,044
Fluor Corp.		11,172		575,358
Fortune Brands Home & Security, Inc. *		9,689		247,070
Foster Wheeler AG *		7,524		164,776
Gardner Denver, Inc.		3,205		193,197
General Dynamics Corp.		19,273		1,262,574
General Electric Co.		685,456		14,195,794
Honeywell International, Inc.		46,371		2,710,385
Hubbell, Inc., Class B		3,724		300,974
Illinois Tool Works, Inc.		26,711		1,583,695
Ingersoll-Rand plc		20,055		937,772
Jacobs Engineering Group, Inc. *		7,984		315,687
Joy Global, Inc.		6,916		369,176
KBR, Inc.		9,576		259,414
L-3 Communications Holdings, Inc.		6,384		448,412
Lincoln Electric Holdings, Inc.		5,320		219,450
Lockheed Martin Corp.		16,574		1,510,554
Masco Corp.		23,416		331,571
MSC Industrial Direct Co., Inc. Class A		2,755		190,922
Navistar International Corp. *		4,256		93,547
Northrop Grumman Corp.		15,457		1,033,919
Owens Corning *		7,448		248,465
PACCAR, Inc.		22,876		912,981
Pall Corp.		7,448		413,438
Parker Hannifin Corp.		10,108		808,438
Pentair, Inc.		6,431		273,317
Precision Castparts Corp.		9,566		1,540,891
Quanta Services, Inc. *		13,347		320,328
Raytheon Co.		21,853		1,235,132
Rockwell Automation, Inc.		9,044		651,711
Rockwell Collins, Inc.		9,576		467,979
Roper Industries, Inc.		6,384		656,211

44 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Spirit AeroSystems Holdings, Inc., Class A *		7,449		185,182
SPX Corp.		3,196		204,224
Stanley Black & Decker, Inc.		10,667		701,675
Textron, Inc.		17,559		469,176
The Babcock & Wilcox Co. *		7,450		183,792
The Boeing Co.		43,081		3,075,983
The Timken Co.		5,852		235,016
TransDigm Group, Inc. *		3,192		442,475
Tyco International Ltd.		29,792		1,679,673
United Technologies Corp.		51,168		4,085,765
URS Corp.		5,320		193,701
W.W. Grainger, Inc.		3,724		766,995
Xylem, Inc.		11,812		286,913

				66,770,637

Commercial & Professional Services 0.7%
Avery Dennison Corp.		6,916		215,987
Cintas Corp.		7,448		301,048
Copart, Inc. *		6,905		184,433
Equifax, Inc.		7,670		351,133
IHS, Inc., Class A *		3,713		423,430
Iron Mountain, Inc.		9,594		314,683
Manpower, Inc.		5,322		197,499
Nielsen Holdings N.V. *		4,788		134,256
Pitney Bowes, Inc. (a)		12,236		163,473
R.R. Donnelley & Sons Co. (a)		12,236		134,351
Republic Services, Inc.		19,804		547,581
Robert Half International, Inc.		9,044		237,857
Stericycle, Inc. *		5,852		535,575
The Dun & Bradstreet Corp.		3,196		258,716
Towers Watson & Co., Class A		3,724		202,288
Verisk Analytics, Inc., Class A *		9,044		438,815
Waste Connections, Inc.		7,980		231,021
Waste Management, Inc.		27,716		958,419

				5,830,565

Consumer Durables & Apparel 1.2%
Coach, Inc.		18,641		1,083,601
D.R. Horton, Inc.		17,556		333,389
Fossil, Inc. *		3,724		316,354
Garmin Ltd. (a)		7,448		300,527
Harman International Industries, Inc.		4,406		202,808
Hasbro, Inc.		7,448		279,375
Leggett & Platt, Inc.		9,044		214,705
Lennar Corp., Class A		10,640		345,055
Mattel, Inc.		22,094		776,383
Michael Kors Holdings Ltd. *		2,660		143,507
Mohawk Industries, Inc. *		3,724		268,314
Newell Rubbermaid, Inc.		18,195		326,236
NIKE, Inc., Class B		23,985		2,335,180
NVR, Inc. *		285		236,031
Polaris Industries, Inc.		4,256		320,009
PVH Corp.		4,256		399,638
Ralph Lauren Corp.		3,949		626,509
Tempur-Pedic International, Inc. *		4,256		132,957
Toll Brothers, Inc. *		9,425		308,386
Tupperware Brands Corp.		3,883		207,663
Under Armour, Inc., Class A *		5,320		309,677
VF Corp.		5,852		893,483
Whirlpool Corp.		4,824		364,019

				10,723,806

Consumer Services 2.0%
Apollo Group, Inc., Class A *		7,503		201,455
Burger King Worldwide, Inc. *		5,301		69,072
Carnival Corp.		25,782		894,120
Chipotle Mexican Grill, Inc. *		2,128		614,226
Darden Restaurants, Inc.		8,432		438,042
DeVry, Inc.		3,826		73,880
Dunkin’ Brands Group, Inc.		7,980		232,457
H&R Block, Inc.		18,620		308,347
Hyatt Hotels Corp., Class A *		2,660		100,894
International Game Technology		19,152		235,378
Las Vegas Sands Corp.		25,004		1,059,920
Marriott International, Inc., Class A		18,620		701,602
McDonald’s Corp.		66,092		5,914,573
MGM Resorts International *		20,263		199,793
Panera Bread Co., Class A *		2,128		329,627
Penn National Gaming, Inc. *		4,441		174,487
Royal Caribbean Cruises Ltd.		9,044		244,369
Starbucks Corp.		49,036		2,432,676
Starwood Hotels & Resorts Worldwide, Inc.		12,390		683,061
Weight Watchers International, Inc.		1,054		50,350
Wyndham Worldwide Corp.		9,576		499,293
Wynn Resorts Ltd.		5,320		548,864
Yum! Brands, Inc.		29,792		1,898,346

				17,904,832

Diversified Financials 5.3%
Affiliated Managers Group, Inc. *		3,251		382,383
American Express Co.		66,500		3,876,950
Ameriprise Financial, Inc.		14,364		788,727
Bank of America Corp.		696,649		5,566,226
BlackRock, Inc.		6,906		1,218,011
Capital One Financial Corp.		37,843		2,139,265
CBOE Holdings, Inc.		5,592		159,036
Citigroup, Inc.		190,988		5,674,254
CME Group, Inc.		20,748		1,139,065
Discover Financial Services		34,048		1,318,679
ETRADE Financial Corp.		16,175		138,620
Eaton Vance Corp.		7,448		201,766
Franklin Resources, Inc.		9,577		1,124,340
IntercontinentalExchange, Inc. *		4,788		654,520
Invesco Ltd.		28,998		686,673
Jefferies Group, Inc.		9,576		140,671
JPMorgan Chase & Co.		246,316		9,148,176
Legg Mason, Inc.		8,512		209,225
Leucadia National Corp.		12,236		261,606
LPL Financial Holdings, Inc.		4,256		122,020
Moody’s Corp.		12,258		485,417
Morgan Stanley		89,908		1,348,620
MSCI, Inc., Class A *		7,476		262,258
Northern Trust Corp.		13,865		643,891
NYSE Euronext		17,024		426,451
Raymond James Financial, Inc.		6,916		243,443
SEI Investments Co.		9,576		208,278
SLM Corp.		32,452		511,119
State Street Corp.		31,967		1,329,827

See financial notes 45

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
T. Rowe Price Group, Inc.		16,492		1,013,268
TD Ameritrade Holding Corp.		14,364		245,768
The Bank of New York Mellon Corp.		77,672		1,750,727
The Charles Schwab Corp. (b)		65,968		889,908
The Goldman Sachs Group, Inc.		27,132		2,868,395
The NASDAQ OMX Group, Inc.		9,044		206,836

				47,384,419

Energy 10.8%
Alpha Natural Resources, Inc. *		14,364		85,322
Anadarko Petroleum Corp.		32,623		2,259,795
Apache Corp.		25,536		2,189,712
Arch Coal, Inc. (a)		13,399		81,868
Baker Hughes, Inc.		28,196		1,285,738
Cabot Oil & Gas Corp.		13,359		553,196
Cameron International Corp. *		16,492		902,277
Chesapeake Energy Corp.		42,560		823,536
Chevron Corp.		128,212		14,380,258
Cimarex Energy Co.		5,386		308,133
Cobalt International Energy, Inc. *		12,236		277,880
Concho Resources, Inc. *		6,916		620,642
ConocoPhillips		82,082		4,661,437
CONSOL Energy, Inc.		14,453		436,481
Continental Resources, Inc. *		3,724		275,799
Denbury Resources, Inc. *		25,004		387,312
Devon Energy Corp.		25,004		1,445,981
Diamond Offshore Drilling, Inc.		4,256		285,237
Energen Corp.		4,788		244,427
EOG Resources, Inc.		17,556		1,901,315
EQT Corp.		9,576		516,721
Exxon Mobil Corp.		303,772		26,519,296
FMC Technologies, Inc. *		15,428		722,648
Halliburton Co.		60,648		1,986,828
Helmerich & Payne, Inc.		6,384		291,366
Hess Corp.		19,684		994,633
HollyFrontier Corp.		12,451		501,651
Kinder Morgan, Inc.		30,195		1,080,075
Marathon Oil Corp.		45,679		1,270,790
Marathon Petroleum Corp.		22,919		1,186,058
McDermott International, Inc. *		14,900		165,986
Murphy Oil Corp.		12,768		655,381
Nabors Industries Ltd. *		18,624		275,076
National-Oilwell Varco, Inc.		27,653		2,179,056
Newfield Exploration Co. *		8,516		277,877
Noble Corp. *		17,024		649,295
Noble Energy, Inc.		11,704		1,028,782
Occidental Petroleum Corp.		52,668		4,477,307
Oceaneering International, Inc.		6,917		370,336
Oil States International, Inc. *		3,192		249,742
Patterson-UTI Energy, Inc.		10,108		153,541
Peabody Energy Corp.		17,381		375,951
Phillips 66		39,900		1,675,800
Pioneer Natural Resources Co.		7,980		776,933
Plains Exploration & Production Co. *		9,091		357,458
QEP Resources, Inc.		11,273		323,422
Range Resources Corp.		10,640		693,622
Rowan Cos. plc, Class A *		8,032		282,566
SandRidge Energy, Inc. *		25,004		164,276
Schlumberger Ltd.		86,716		6,276,504
SM Energy Co.		4,256		201,011
Southwestern Energy Co. *		22,352		695,818
Spectra Energy Corp.		41,673		1,177,679
Sunoco, Inc.		6,820		321,836
Superior Energy Services, Inc. *		10,108		209,943
The Williams Cos., Inc.		40,508		1,307,193
Tidewater, Inc.		3,261		154,669
Ultra Petroleum Corp. *(a)		9,677		198,959
Valero Energy Corp.		36,222		1,132,300
Weatherford International Ltd. *		48,412		569,325
Whiting Petroleum Corp. *		7,448		331,585
WPX Energy, Inc. *		12,515		195,234

				96,380,875

Food & Staples Retailing 2.2%
Costco Wholesale Corp.		28,196		2,759,542
CVS Caremark Corp.		82,615		3,763,113
Safeway, Inc. (a)		15,457		241,902
Sysco Corp.		37,899		1,148,340
The Kroger Co.		34,048		758,589
Wal-Mart Stores, Inc.		113,306		8,226,016
Walgreen Co.		56,510		2,020,798
Whole Foods Market, Inc.		10,641		1,029,517

				19,947,817

Food, Beverage & Tobacco 6.0%
Altria Group, Inc.		132,717		4,507,069
Archer-Daniels-Midland Co.		39,170		1,047,798
Beam, Inc.		10,098		589,319
Brown-Forman Corp., Class B		10,498		672,922
Bunge Ltd.		9,432		600,347
Campbell Soup Co.		12,769		448,703
Coca-Cola Enterprises, Inc.		20,046		591,958
ConAgra Foods, Inc.		26,685		670,060
Constellation Brands, Inc., Class A *		11,172		368,006
Dr. Pepper Snapple Group, Inc.		14,054		629,760
General Mills, Inc.		39,015		1,534,460
Green Mountain Coffee Roasters, Inc. *(a)		7,980		193,994
H.J. Heinz Co.		20,748		1,156,079
Hillshire Brands Co.		7,448		194,169
Hormel Foods Corp.		9,265		266,091
Ingredion, Inc.		4,869		262,098
Kellogg Co.		15,960		808,374
Kraft Foods, Inc., Class A		114,901		4,771,839
Lorillard, Inc.		8,528		1,070,349
McCormick & Co., Inc. Non Voting Shares		8,512		522,977
Mead Johnson Nutrition Co.		13,300		975,289
Molson Coors Brewing Co., Class B		10,108		450,210
Monster Beverage Corp. *		10,108		595,664
PepsiCo, Inc.		101,612		7,359,757
Philip Morris International, Inc.		112,252		10,024,104
Ralcorp Holdings, Inc. *		3,724		264,255
Reynolds American, Inc.		21,716		1,001,108
Smithfield Foods, Inc. *		9,622		185,897
The Coca-Cola Co.		271,320		10,147,368
The Hershey Co.		10,131		727,608
The J.M. Smucker Co.		7,539		640,589
Tyson Foods, Inc., Class A		18,361		287,533

				53,565,754

46 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


		Number		Value
Security		of Shares		($)

Health Care Equipment & Services 3.7%
Aetna, Inc.			23,408		899,101
AmerisourceBergen Corp.			16,492		635,272
Baxter International, Inc.			36,164		2,122,104
Becton, Dickinson & Co.	��		12,259		931,439
Boston Scientific Corp. *			95,228		514,231
C.R. Bard, Inc.			5,330		522,926
Cardinal Health, Inc.			22,344		883,705
CareFusion Corp. *			14,364		377,342
Cerner Corp. *			9,100		665,574
CIGNA Corp.			18,620		852,237
Coventry Health Care, Inc.			9,044		376,502
Covidien plc			31,388		1,759,297
DaVita, Inc. *			5,946		578,368
DENTSPLY International, Inc.			9,094		329,839
Edwards Lifesciences Corp. *			7,448		760,515
Express Scripts Holding Co. *			52,114		3,263,379
HCA Holdings, Inc.			10,678		304,857
Henry Schein, Inc. *			5,852		449,492
Hologic, Inc. *			17,024		334,181
Humana, Inc.			10,656		746,773
IDEXX Laboratories, Inc. *			3,724		354,004
Intuitive Surgical, Inc. *			2,551		1,254,556
Laboratory Corp. of America Holdings *			6,417		564,375
McKesson Corp.			15,457		1,346,459
Medtronic, Inc.			67,552		2,746,664
Omnicare, Inc.			7,495		242,688
Patterson Cos., Inc.			5,852		198,793
Quest Diagnostics, Inc.			10,115		611,654
ResMed, Inc. *			9,730		365,556
St. Jude Medical, Inc.			20,810		785,786
Stryker Corp.			19,152		1,020,036
UnitedHealth Group, Inc.			67,158		3,646,679
Universal Health Services, Inc., Class B			5,856		233,947
Varian Medical Systems, Inc. *			7,448		437,868
WellPoint, Inc.			21,320		1,276,428
Zimmer Holdings, Inc.			11,193		691,504

					33,084,131

Household & Personal Products 2.3%
Avon Products, Inc.			27,259		421,152
Church & Dwight Co., Inc.			9,183		502,677
Colgate-Palmolive Co.			28,728		3,054,074
Energizer Holdings, Inc.			4,346		299,439
Herbalife Ltd.			7,560		365,828
Kimberly-Clark Corp.			25,536		2,134,810
The Clorox Co.			8,513		619,321
The Estee Lauder Cos., Inc., Class A			14,952		896,372
The Procter & Gamble Co.			178,752		12,010,347

					20,304,020

Insurance 3.9%
ACE Ltd.			21,814		1,608,346
Aflac, Inc.			30,342		1,401,194
Alleghany Corp. *			1,064		358,728
Allied World Assurance Co. Holdings AG			2,660		208,890
American Financial Group, Inc.			5,352		201,021
American International Group, Inc. *			46,371		1,591,917
Aon plc			21,280		1,105,709
Arch Capital Group Ltd. *			8,512		339,714
Assurant, Inc.			5,883		207,376
Assured Guaranty Ltd.			10,716		141,451
Axis Capital Holdings Ltd.			8,512		290,004
Berkshire Hathaway, Inc., Class B *			124,488		10,499,318
Brown & Brown, Inc.			7,495		196,669
Cincinnati Financial Corp.			9,623		372,025
CNA Financial Corp.			1,641		42,863
Erie Indemnity Co., Class A			1,673		106,687
Everest Re Group Ltd.			2,665		276,254
Fidelity National Financial, Inc., Class A			13,832		260,595
Genworth Financial, Inc., Class A *			31,400		166,106
Hartford Financial Services Group, Inc.			28,382		508,889
HCC Insurance Holdings, Inc.			6,916		228,781
Lincoln National Corp.			19,152		444,710
Loews Corp.			22,419		911,332
Markel Corp. *			657		285,729
Marsh & McLennan Cos., Inc.			34,845		1,190,654
MetLife, Inc.			53,200		1,815,716
Old Republic International Corp.			15,478		133,575
PartnerRe Ltd.			4,256		312,390
Principal Financial Group, Inc.			18,960		520,263
Prudential Financial, Inc.			31,388		1,710,960
Reinsurance Group of America, Inc.			4,788		281,247
RenaissanceRe Holdings Ltd.			3,277		253,148
The Allstate Corp.			30,324		1,130,479
The Chubb Corp.			17,589		1,299,651
The Progressive Corp.			36,708		716,907
The Travelers Cos., Inc.			25,584		1,656,308
Torchmark Corp.			6,916		353,961
Unum Group			18,620		363,276
Validus Holdings Ltd.			5,839		195,665
W.R. Berkley Corp.			7,980		298,292
White Mountains Insurance Group Ltd.			351		182,639
XL Group plc			20,592		476,087

					34,645,526

Materials 3.7%
Air Products & Chemicals, Inc.			12,772		1,054,712
Airgas, Inc.			4,350		361,354
Albemarle Corp.			5,969		326,683
Alcoa, Inc.			68,628		587,456
Allegheny Technologies, Inc.			6,916		204,990
Allied Nevada Gold Corp. *			5,320		173,326
AptarGroup, Inc.			3,790		191,964
Ashland, Inc.			4,353		320,511
Ball Corp.			10,750		453,327
Bemis Co., Inc.			6,916		209,278
Celanese Corp., Series A			10,118		387,115
CF Industries Holdings, Inc.			4,264		882,691
Cliffs Natural Resources, Inc.			9,190		329,370
Crown Holdings, Inc. *			9,576		347,130
E.I. du Pont de Nemours & Co.			61,180		3,043,705
Eastman Chemical Co.			10,108		558,568
Ecolab, Inc.			17,056		1,092,096

See financial notes 47

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
FMC Corp.		9,061		492,194
Freeport-McMoRan Copper & Gold, Inc.		60,648		2,189,999
Huntsman Corp.		12,306		176,960
International Flavors & Fragrances, Inc.		5,320		321,966
International Paper Co.		26,104		902,154
LyondellBasell Industries N.V., Class A		21,850		1,067,154
Martin Marietta Materials, Inc. (a)		2,660		203,171
MeadWestvaco Corp.		10,784		310,148
Molycorp, Inc. *(a)		3,849		44,302
Monsanto Co.		34,580		3,012,264
Newmont Mining Corp.		31,388		1,590,744
Nucor Corp.		18,620		701,043
Owens-Illinois, Inc. *		10,640		185,987
PPG Industries, Inc.		10,109		1,112,192
Praxair, Inc.		19,188		2,024,334
Reliance Steel & Aluminum Co.		4,788		246,247
Rock-Tenn Co., Class A		4,788		319,695
Rockwood Holdings, Inc.		4,256		201,479
Royal Gold, Inc.		4,256		374,613
Sealed Air Corp.		12,236		174,608
Sigma-Aldrich Corp.		6,882		488,828
Sonoco Products Co.		6,384		195,287
Southern Copper Corp.		10,997		357,842
Steel Dynamics, Inc.		13,832		169,027
The Dow Chemical Co.		77,672		2,276,566
The Mosaic Co.		17,024		985,860
The Scotts Miracle-Gro Co., Class A		2,776		115,620
The Sherwin-Williams Co.		5,852		837,304
The Valspar Corp.		5,852		312,146
Titanium Metals Corp.		5,360		65,606
Tronox Ltd., Class A		500		12,895
United States Steel Corp. (a)		9,155		178,065
Valhi, Inc.		1,596		20,126
Vulcan Materials Co.		7,452		290,032
Walter Energy, Inc.		4,256		139,171

				32,619,905

Media 3.6%
AMC Networks, Inc., Class A *		3,825		150,475
Cablevision Systems Corp., Class A		15,437		230,783
CBS Corp., Class B Non Voting Shares		39,368		1,430,633
Charter Communications, Inc., Class A *		2,661		207,026
Clear Channel Outdoor Holdings, Inc., Class A *		2,128		11,172
Comcast Corp., Class A		174,824		5,861,849
DIRECTV *		43,092		2,244,662
Discovery Communications, Inc., Series A *		17,024		933,596
DISH Network Corp., Class A		13,300		425,467
Gannett Co., Inc.		15,428		235,431
John Wiley & Sons, Inc., Class A		3,192		157,493
Liberty Global, Inc., Series A *		17,024		940,916
Liberty Media Corp. - Liberty Capital, Series A *		7,448		776,677
News Corp., Class A		141,245		3,303,721
Omnicom Group, Inc.		17,556		901,852
Scripps Networks Interactive, Class A		5,963		352,413
Sirius XM Radio, Inc. *		241,528		611,066
The Interpublic Group of Cos., Inc.		29,647		315,444
The McGraw-Hill Cos., Inc.		17,589		900,557
The Walt Disney Co.		108,199		5,352,605
The Washington Post Co., Class B		362		127,605
Time Warner Cable, Inc.		20,254		1,798,960
Time Warner, Inc.		62,361		2,591,100
Viacom, Inc., Class B		32,452		1,622,925
Virgin Media, Inc.		17,589		484,929

				31,969,357

Pharmaceuticals, Biotechnology & Life Sciences 7.8%
Abbott Laboratories		102,133		6,693,797
Agilent Technologies, Inc.		22,344		830,303
Alexion Pharmaceuticals, Inc. *		12,768		1,368,857
Allergan, Inc.		19,684		1,695,383
Amgen, Inc.		50,530		4,240,478
Biogen Idec, Inc. *		15,990		2,343,974
Bristol-Myers Squibb Co.		109,798		3,624,432
Celgene Corp. *		28,196		2,031,240
Covance, Inc. *		3,724		177,970
Eli Lilly & Co.		64,372		2,890,947
Endo Health Solutions, Inc. *		7,304		232,413
Forest Laboratories, Inc. *		16,268		564,337
Gilead Sciences, Inc. *		49,036		2,828,887
Hospira, Inc. *		10,640		357,291
Illumina, Inc. *		7,996		336,472
Johnson & Johnson		177,688		11,981,502
Life Technologies Corp. *		11,704		558,398
Merck & Co., Inc.		197,210		8,489,891
Mettler-Toledo International, Inc. *		2,128		351,354
Mylan, Inc. *		27,346		644,545
PerkinElmer, Inc.		7,452		203,440
Perrigo Co.		5,320		585,040
Pfizer, Inc.		486,105		11,598,465
Regeneron Pharmaceuticals, Inc. *		4,788		708,863
Techne Corp.		2,235		153,254
Thermo Fisher Scientific, Inc.		23,985		1,375,540
United Therapeutics Corp. *		3,192		172,751
Vertex Pharmaceuticals, Inc. *		14,364		766,032
Warner Chilcott plc, Class A		11,704		159,408
Waters Corp. *		5,913		474,163
Watson Pharmaceuticals, Inc. *		7,980		649,173

				69,088,600

Real Estate 2.9%
Alexandria Real Estate Equities, Inc.		4,257		314,592
American Capital Agency Corp.		21,280		741,395
American Tower Corp.		25,536		1,797,734
Annaly Capital Management, Inc.		62,381		1,079,815
AvalonBay Communities, Inc.		6,384		903,464
Boston Properties, Inc.		9,576		1,073,757
BRE Properties, Inc.		4,809		240,065
Brookfield Office Properties, Inc. (a)		16,539		276,863
Camden Property Trust		5,320		369,368
CBRE Group, Inc., Class A *		18,757		324,684
Chimera Investment Corp.		65,968		167,559
DDR Corp.		15,428		234,814
Digital Realty Trust, Inc.		7,968		593,696
Equity Residential		19,684		1,188,914

48 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Essex Property Trust, Inc.		2,172		330,100
Federal Realty Investment Trust		4,256		459,265
General Growth Properties, Inc.		24,746		509,273
HCP, Inc.		27,716		1,271,056
Health Care REIT, Inc.		13,821		807,699
Host Hotels & Resorts, Inc.		48,412		740,704
Jones Lang LaSalle, Inc.		2,665		192,226
Kimco Realty Corp.		26,111		530,575
Liberty Property Trust		7,448		274,682
Piedmont Office Realty Trust, Inc., Class A		10,818		183,581
Plum Creek Timber Co., Inc.		10,640		435,495
ProLogis, Inc.		29,792		1,017,993
Public Storage		9,074		1,320,811
Rayonier, Inc.		7,980		390,940
Realty Income Corp.		8,570		361,054
Regency Centers Corp.		5,852		286,748
Simon Property Group, Inc.		19,152		3,039,422
SL Green Realty Corp.		6,396		515,518
The Macerich Co.		8,438		502,652
UDR, Inc.		14,364		362,691
Ventas, Inc.		18,620		1,219,424
Vornado Realty Trust		11,704		950,014
Weyerhaeuser Co.		34,580		861,388

				25,870,031

Retailing 4.3%
Abercrombie & Fitch Co., Class A		5,320		191,467
Advance Auto Parts, Inc.		4,805		341,732
Amazon.com, Inc. *		22,876		5,678,509
American Eagle Outfitters, Inc.		12,553		279,179
AutoNation, Inc. *(a)		2,238		89,968
AutoZone, Inc. *		1,908		690,009
Bed Bath & Beyond, Inc. *		14,924		1,002,445
Best Buy Co., Inc.		18,967		336,475
CarMax, Inc. *		14,385		440,037
Dick’s Sporting Goods, Inc.		5,786		287,911
Dollar General Corp. *		14,391		734,948
Dollar Tree, Inc. *		14,924		718,889
Expedia, Inc.		6,400		328,704
Family Dollar Stores, Inc.		6,916		440,134
Foot Locker, Inc.		10,108		349,434
GameStop Corp., Class A (a)		8,906		169,926
Genuine Parts Co.		10,155		641,390
Groupon, Inc. *(a)		20,787		86,266
Guess?, Inc.		4,256		110,911
J.C. Penney Co., Inc.		9,607		250,551
Kohl’s Corp.		14,924		779,033
Liberty Interactive Corp., Series A *		38,836		708,369
Liberty Ventures, Series A *		1,939		89,184
Limited Brands, Inc.		15,960		775,656
LKQ Corp. *		9,576		361,398
Lowe’s Cos., Inc.		77,818		2,216,257
Macy’s, Inc.		27,132		1,093,691
Netflix, Inc. *(a)		3,724		222,397
Nordstrom, Inc.		10,108		584,546
O’Reilly Automotive, Inc. *		7,995		679,175
PetSmart, Inc.		6,929		491,405
Priceline.com, Inc. *		3,192		1,929,787
Ross Stores, Inc.		14,908		1,031,484
Sally Beauty Holdings, Inc. *		11,172		307,230
Sears Holdings Corp. *(a)		3,192		168,378
Signet Jewelers Ltd.		5,852		268,373
Staples, Inc.		45,752		499,612
Target Corp.		38,909		2,493,678
The Gap, Inc.		22,344		800,362
The Home Depot, Inc.		100,548		5,706,099
The TJX Cos., Inc.		47,970		2,196,546
Tiffany & Co.		8,097		501,609
Tractor Supply Co.		4,788		457,158
TripAdvisor, Inc. *		6,400		214,016
Ulta Salon, Cosmetics & Fragrance, Inc.		3,724		350,056
Urban Outfitters, Inc. *		7,793		292,549

				38,386,933

Semiconductors & Semiconductor Equipment 2.2%
Advanced Micro Devices, Inc. *		37,772		140,512
Altera Corp.		20,850		778,330
Analog Devices, Inc.		19,171		761,856
Applied Materials, Inc.		84,588		988,834
Atmel Corp. *		28,756		170,523
Broadcom Corp., Class A *		31,388		1,115,216
Cree, Inc. *		7,464		210,485
First Solar, Inc. *(a)		3,724		74,443
Intel Corp.		326,738		8,112,904
KLA-Tencor Corp.		10,677		547,837
Lam Research Corp. *		12,768		435,772
Linear Technology Corp.		13,856		457,594
LSI Corp. *		36,748		286,267
Marvell Technology Group Ltd.		31,388		319,530
Maxim Integrated Products, Inc.		18,944		514,140
Microchip Technology, Inc.		12,269		426,348
Micron Technology, Inc. *		63,840		396,446
NVIDIA Corp. *		39,368		552,333
ON Semiconductor Corp. *		28,196		175,661
Skyworks Solutions, Inc. *		12,768		388,913
Texas Instruments, Inc.		75,012		2,178,348
Xilinx, Inc.		17,068		578,776

				19,611,068

Software & Services 9.5%
Accenture plc, Class A		45,305		2,790,788
Activision Blizzard, Inc.		26,953		316,967
Adobe Systems, Inc. *		31,755		992,979
Akamai Technologies, Inc. *		11,704		439,017
Alliance Data Systems Corp. *		3,192		439,379
ANSYS, Inc. *		5,862		408,581
Autodesk, Inc. *		14,364		446,002
Automatic Data Processing, Inc.		31,920		1,853,914
BMC Software, Inc. *		9,594		397,192
Broadridge Financial Solutions, Inc.		8,027		190,079
CA, Inc.		23,781		619,019
Citrix Systems, Inc. *		12,236		950,615
Cognizant Technology Solutions Corp., Class A *		19,684		1,265,288
Computer Sciences Corp.		9,666		311,342
eBay, Inc. *		72,352		3,434,550
Electronic Arts, Inc. *		21,500		286,595
Equinix, Inc. *		3,192		630,899
Facebook, Inc., Class A *(a)		32,984		596,351

See financial notes 49

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
FactSet Research Systems, Inc.		2,730		251,897
Fidelity National Information Services, Inc.		16,582		522,333
Fiserv, Inc. *		9,053		645,569
Genpact Ltd. *		6,426		117,275
Global Payments, Inc.		4,758		198,171
Google, Inc., Class A *		16,492		11,298,504
IAC/InterActiveCorp		4,788		248,210
Informatica Corp. *		6,916		225,462
International Business Machines Corp.		71,563		13,944,051
Intuit, Inc.		17,641		1,032,704
LinkedIn Corp., Class A *		4,264		457,527
MasterCard, Inc., Class A		6,646		2,810,593
Microsoft Corp.		485,716		14,969,767
Nuance Communications, Inc. *		14,764		352,121
Oracle Corp.		248,444		7,863,253
Paychex, Inc.		20,748		690,079
Rackspace Hosting, Inc. *		7,448		446,731
Red Hat, Inc. *		12,768		715,519
Rovi Corp. *		7,114		109,129
SAIC, Inc.		22,064		269,401
Salesforce.com, Inc. *		7,980		1,158,536
ServiceNow, Inc. *(a)		1,053		32,748
Solera Holdings, Inc.		4,303		176,982
Symantec Corp. *		46,816		834,729
Synopsys, Inc. *		9,044		298,723
Teradata Corp. *		11,172		853,317
TIBCO Software, Inc. *		10,640		318,349
Total System Services, Inc.		12,772		296,055
Vantiv, Inc., Class A *		3,192		72,012
VeriFone Systems, Inc. *		6,916		240,262
VeriSign, Inc. *		10,227		487,623
Visa, Inc., Class A		34,580		4,434,885
VMware, Inc., Class A *		4,258		379,132
Western Union Co.		40,025		704,840
Yahoo!, Inc. *		76,608		1,122,307
Zynga, Inc., Class A *		6,916		19,365

				84,967,718

Technology Hardware & Equipment 8.1%
Amphenol Corp., Class A		10,668		649,361
Apple, Inc.		60,273		40,096,011
Arrow Electronics, Inc. *		6,916		250,705
Avnet, Inc. *		9,044		291,307
Cisco Systems, Inc.		347,928		6,638,466
Corning, Inc.		98,605		1,182,274
Dell, Inc. *		102,144		1,081,705
Dolby Laboratories, Inc., Class A *		3,266		108,366
EMC Corp. *		135,915		3,573,205
F5 Networks, Inc. *		5,320		518,647
FLIR Systems, Inc.		10,112		200,218
Harris Corp.		7,455		350,609
Hewlett-Packard Co.		130,872		2,209,119
Ingram Micro, Inc., Class A *		10,640		162,473
Jabil Circuit, Inc.		12,236		278,736
JDS Uniphase Corp. *		14,712		164,627
Juniper Networks, Inc. *		33,943		591,966
Molex, Inc.		9,299		246,889
Motorola Solutions, Inc.		19,152		912,784
NCR Corp. *		10,155		227,370
NetApp, Inc. *		23,408		808,044
Palo Alto Networks, Inc. *		532		34,250
Polycom, Inc. *		11,704		121,956
QUALCOMM, Inc.		111,720		6,866,311
Riverbed Technology, Inc. *		9,818		196,262
SanDisk Corp. *		15,428		635,942
Seagate Technology plc		25,584		818,944
TE Connectivity Ltd.		27,132		954,232
Trimble Navigation Ltd. *		7,984		391,615
Western Digital Corp. *		14,936		624,624
Xerox Corp.		89,386		658,775

				71,845,793

Telecommunication Services 3.1%
AT&T, Inc.		380,571		13,944,122
CenturyLink, Inc.		40,951		1,730,589
Crown Castle International Corp. *		17,056		1,082,374
Frontier Communications Corp. (a)		66,006		304,948
Level 3 Communications, Inc. *		10,108		217,827
MetroPCS Communications, Inc. *		20,095		195,524
NII Holdings, Inc. *		10,772		67,217
SBA Communications Corp., Class A *		7,980		477,045
Sprint Nextel Corp. *		192,627		934,241
Telephone & Data Systems, Inc.		6,414		157,271
United States Cellular Corp. *		1,132		42,959
Verizon Communications, Inc.		183,528		7,880,692
Windstream Corp. (a)		37,240		367,559

				27,402,368

Transportation 1.7%
C.H. Robinson Worldwide, Inc.		10,640		602,330
CSX Corp.		67,600		1,518,296
Delta Air Lines, Inc. *		53,872		465,993
Expeditors International of Washington, Inc.		13,836		506,536
FedEx Corp.		19,152		1,678,290
Hertz Global Holdings, Inc. *		15,129		214,529
J.B. Hunt Transport Services, Inc.		6,413		336,298
Kansas City Southern		6,977		539,532
Norfolk Southern Corp.		21,280		1,541,949
Southwest Airlines Co.		51,096		456,798
Union Pacific Corp.		30,914		3,754,196
United Continental Holdings, Inc. *		21,283		392,671
United Parcel Service, Inc., Class B		47,348		3,494,756

				15,502,174

Utilities 3.7%
AGL Resources, Inc.		7,478		296,503
Alliant Energy Corp.		7,082		312,175
Ameren Corp.		15,432		504,935
American Electric Power Co., Inc.		31,388		1,349,370
American Water Works Co., Inc.		11,191		412,612
Aqua America, Inc.		9,044		226,100
Atmos Energy Corp.		5,852		204,469
Calpine Corp. *		24,767		434,661
CenterPoint Energy, Inc.		25,135		512,503
CMS Energy Corp.		18,088		417,290
Consolidated Edison, Inc.		19,152		1,160,994

50 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Dominion Resources, Inc.		37,240		1,954,355
DTE Energy Co.		10,687		624,121
Duke Energy Corp.		44,996		2,914,841
Edison International		19,198		840,680
Entergy Corp.		11,704		796,808
Exelon Corp.		55,328		2,017,812
FirstEnergy Corp.		27,664		1,208,917
Integrys Energy Group, Inc.		4,897		264,389
ITC Holdings Corp.		3,192		229,760
MDU Resources Group, Inc.		11,219		241,770
National Fuel Gas Co.		5,852		292,015
NextEra Energy, Inc.		27,132		1,826,255
NiSource, Inc.		18,088		440,262
Northeast Utilities		20,292		764,400
NRG Energy, Inc.		15,514		331,069
NV Energy, Inc.		14,939		262,030
OGE Energy Corp.		6,396		345,704
ONEOK, Inc.		12,768		568,559
Pepco Holdings, Inc.		14,411		278,276
PG&E Corp.		27,664		1,200,894
Pinnacle West Capital Corp.		6,931		356,046
PPL Corp.		37,147		1,089,522
Public Service Enterprise Group, Inc.		32,708		1,035,535
Questar Corp.		11,273		222,642
SCANA Corp.		7,448		352,737
Sempra Energy		14,364		950,897
TECO Energy, Inc.		12,815		222,468
The AES Corp. *		41,496		472,639
The Southern Co.		56,498		2,561,054
UGI Corp.		7,448		227,015
Westar Energy, Inc.		9,044		263,361
Wisconsin Energy Corp.		14,896		565,452
Xcel Energy, Inc.		31,388		875,411

				32,429,308

Total Common Stock
(Cost $792,380,201)				888,442,866




Rights 0.0% of net assets

Retailing 0.0%
Liberty Ventures *(c)(d)		642		—

Total Rights
(Cost $3,999)				—




Other Investment Company 0.0% of net assets

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund		284,948		284,948

Total Other Investment Company
(Cost $284,948)				284,948



End of Investments.



Collateral Invested for Securities on Loan 0.2% of net assets


State Street Institutional U.S. Government Money Market Fund		1,864,672		1,864,672

Total Collateral Invested for Securities on Loan
(Cost $1,864,672)				1,864,672



End of Collateral Invested for Securities on Loan

At 08/31/12, the tax basis cost of the fund’s investments was $793,158,733 and the unrealized appreciation and depreciation were $135,212,683 and ($39,643,602), respectively, with a net unrealized appreciation of $95,569,081.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Issuer is affiliated with the fund’s adviser.
(c)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(d)		Illiquid security. At the period end, the value of these amounted to $0 or 0% of net assets.


REIT —		Real Estate Investment Trust

See financial notes 51

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2012 (see financial note 2(a) for additional information):


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

Common Stock¹		$888,442,866		$—		$—		$888,442,866
Rights¹		—		—		—		—
Other Investment Company¹		284,948		—		—		284,948

Total		$888,727,814		$—		$—		$888,727,814

Other Financial Instruments
Collateral Invested for Securities on Loan		$1,864,672		$—		$—		$1,864,672


¹		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

Balance

Change in

Balance

as of

Realized

Unrealized

Gross

as of

August 31,

Gain

Gains

Gross

Transfers

August 31,

Investments in Securities

2011

(Loss)

(Losses)

Purchases

Sales

out

2012

Rights

$—

($4,000

)

$4,000

$—

Total

$—

($4,000

)

$4,000

$—

52 See financial notes

Schwab U.S. Large-Cap ETF

Statement of

Assets and Liabilities

As of August 31, 2012



Assets

Investments in affiliated issuers, at value (cost $1,080,661)		$889,908
Investments in unaffiliated issuers, at value (cost $791,588,487) including securities on loan of $1,892,672	+	887,837,906

Total investments, at value (cost $792,669,148)		888,727,814
Collateral invested for securities on loan		1,864,672
Receivables:
Fund shares sold		3,348,900
Dividends		2,057,397
Income from securities on loan		5,494
Foreign tax reclaims		1,135
Interest	+	13

Total assets		896,005,425

Liabilities

Collateral held for securities on loan		1,864,672
Payables:
Investments bought		3,327,011
Investment adviser fees	+	5,832

Total liabilities		5,197,515

Net Assets

Total assets		896,005,425
Total liabilities	—	5,197,515

Net assets		$890,807,910

Net Assets by Source
Capital received from investors		794,494,420
Net investment income not yet distributed		3,272,234
Net realized capital losses		(3,017,410	)
Net unrealized capital gains		96,058,666

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$890,807,910

26,600,000

$33.49

See financial notes 53

Schwab U.S. Large-Cap ETF

Statement of

Operations

For September 1, 2011 through August 31, 2012



Investment Income

Dividends received from affiliated issuer		$14,902
Dividends received from unaffiliated issuers (net of foreign withholding tax of $19,506)		16,748,241
Interest		337
Securities on loan	+	51,002

Total investment income		16,814,482

Expenses

Investment adviser fees		617,134

Total expenses	−	617,134

Net investment income		16,197,348

Realized and Unrealized Gains (Losses)

Net realized gains on affiliated issuer		3,572
Net realized losses on unaffiliated investments		(1,858,368	)
Net realized gains on in-kind redemptions	+	9,709,414

Net realized gains		7,854,618
Net unrealized gains on affiliated issuer		68,662
Net unrealized gains on unaffiliated investments	+	97,133,289

Net unrealized gains	+	97,201,951

Net realized and unrealized gains		105,056,569

Net increase in net assets resulting from operations		$121,253,917

54 See financial notes

Schwab U.S. Large-Cap ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/11-8/31/12				9/1/10-8/31/11
Net investment income		$16,197,348			$9,053,736
Net realized gains		7,854,618			14,320,204
Net unrealized gains	+	97,201,951			18,714,018

Net increase in net assets resulting from operations		121,253,917			42,087,958

Distributions to Shareholders

Distributions from net investment income		($14,860,890	)		($8,109,371	)

Transactions in Fund Shares

9/1/11-8/31/12

9/1/10-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares sold

6,850,000

$211,482,525

12,800,000

$387,220,506

Shares redeemed

(1,400,001

)

(42,848,148

)

(2,600,000

)

(78,921,350

)

Net transactions in fund shares

5,449,999

$168,634,377

10,200,000

$308,299,156

Shares Outstanding and Net Assets

9/1/11-8/31/12

9/1/10-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

21,150,001

$615,780,506

10,950,001

$273,502,763

Total increase

5,449,999

275,027,404

10,200,000

342,277,743

End of period

26,600,000

$890,807,910

21,150,001

$615,780,506

Net investment income not yet distributed

$3,272,234

$2,078,342

See financial notes 55

Schwab U.S. Large-Cap Growth ETF™

Financial Statements

Financial Highlights


	9/1/11–			9/1/10–			12/9/09¹–
	8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		29.44			24.21			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.36			0.27			0.15
Net realized and unrealized gains (losses)		4.59			5.20			(0.83	)

Total from investment operations		4.95			5.47			(0.68	)
Less distributions:
Distributions from net investment income		(0.34	)		(0.24	)		(0.11	)

Net asset value at end of period		34.05			29.44			24.21

Total return (%)		16.96			22.57			(2.75	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.13			0.13			0.14	^3,4
Gross operating expenses		0.13			0.13			0.14	³
Net investment income (loss)		1.17			0.93			0.86	³
Portfolio turnover rate⁵		8			10			6	²
Net assets, end of period ($ x 1,000)		475,062			309,155			108,946

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 8/31/10 is a blended rate.

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

56 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings as of August 31, 2012

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		424,801,434		474,400,052
	0	.0%	Other Investment Company		71,506		71,506


	99	.9%	Total Investments		424,872,940		474,471,558
	0	.2%	Collateral Invested for Securities on Loan		1,097,728		1,097,728
	(0	.1)%	Other Assets and Liabilities, Net				(507,567	)


	100	.0%	Net Assets				475,061,719


	Number		Value
Security	of Shares		($)

Common Stock 99.9% of net assets

Automobiles & Components 0.5%
Allison Transmission Holdings, Inc. (a)		1,674		29,747
BorgWarner, Inc. *		8,370		575,689
Gentex Corp.		10,081		176,619
Johnson Controls, Inc.		48,000		1,306,080
Visteon Corp. *		3,627		166,914

				2,255,049

Banks 0.2%
SunTrust Banks, Inc.		37,794		951,275

Capital Goods 6.9%
Aecom Technology Corp. *		7,291		141,372
AGCO Corp. *		6,736		283,518
AMETEK, Inc.		16,842		577,849
B/E Aerospace, Inc. *		6,696		269,581
Caterpillar, Inc.		41,571		3,547,253
Cooper Industries plc		11,202		819,426
Cummins, Inc.		12,276		1,192,122
Danaher Corp.		40,734		2,182,120
Deere & Co.		28,563		2,145,367
Donaldson Co., Inc.		9,522		336,031
Dover Corp.		13,129		758,987
Emerson Electric Co.		52,173		2,646,215
Fastenal Co.		20,784		895,583
First Solar, Inc. *(a)		3,906		78,081
Flowserve Corp.		3,906		498,640
Fluor Corp.		12,041		620,111
Fortune Brands Home & Security, Inc. *		10,881		277,466
Foster Wheeler AG *		8,203		179,646
Gardner Denver, Inc.		3,627		218,636
Illinois Tool Works, Inc.		29,307		1,737,612
Jacobs Engineering Group, Inc. *		8,961		354,318
Joy Global, Inc.		7,533		402,112
KBR, Inc.		10,505		284,580
Lincoln Electric Holdings, Inc.		5,933		244,736
MSC Industrial Direct Co., Inc. Class A		3,113		215,731
Navistar International Corp. *		4,761		104,647
PACCAR, Inc.		25,389		1,013,275
Pall Corp.		8,121		450,797
Pentair, Inc.		6,975		296,438
Precision Castparts Corp.		10,323		1,662,829
Quanta Services, Inc. *		14,533		348,792
Rockwell Collins, Inc.		10,362		506,391
Roper Industries, Inc.		6,975		716,960
Spirit AeroSystems Holdings, Inc., Class A *		8,398		208,774
SPX Corp.		3,641		232,660
Textron, Inc.		19,599		523,685
The Babcock & Wilcox Co. *		8,205		202,417
The Boeing Co.		47,151		3,366,581
The Timken Co.		5,580		224,093
TransDigm Group, Inc. *		3,348		464,100
URS Corp.		5,599		203,860
W.W. Grainger, Inc.		4,185		861,943
Xylem, Inc.		12,931		314,094

				32,609,429

Commercial & Professional Services 0.7%
Copart, Inc. *		8,398		224,311
Equifax, Inc.		8,417		385,330
IHS, Inc., Class A *		4,185		477,257
Nielsen Holdings N.V. *		5,076		142,331
Robert Half International, Inc.		10,190		267,997
Stericycle, Inc. *		6,138		561,750
The Dun & Bradstreet Corp.		3,360		271,992
Towers Watson & Co., Class A		4,198		228,035
Verisk Analytics, Inc., Class A *		10,044		487,335
Waste Connections, Inc.		8,091		234,235

				3,280,573

Consumer Durables & Apparel 1.8%
Coach, Inc.		20,400		1,185,852
Fossil, Inc. *		3,906		331,815
Harman International Industries, Inc.		4,904		225,731
Michael Kors Holdings Ltd. *		3,079		166,112
Mohawk Industries, Inc. *		3,921		282,508
NIKE, Inc., Class B		26,505		2,580,527
NVR, Inc. *		335		277,440
PVH Corp.		4,743		445,368
Ralph Lauren Corp.		4,464		708,214
Stanley Black & Decker, Inc.		12,276		807,515
Tempur-Pedic International, Inc. *		4,480		139,955
Toll Brothers, Inc. *		10,323		337,768
Under Armour, Inc., Class A *		5,580		324,812
VF Corp.		6,138		937,150

				8,750,767

See financial notes 57

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Consumer Services 2.2%
Apollo Group, Inc., Class A *		7,841		210,531
Burger King Worldwide, Inc. *		6,417		83,614
Chipotle Mexican Grill, Inc. *		2,232		644,244
DeVry, Inc.		3,921		75,715
Dunkin’ Brands Group, Inc.		7,254		211,309
Hyatt Hotels Corp., Class A *		2,521		95,622
Las Vegas Sands Corp.		27,760		1,176,746
Marriott International, Inc., Class A		20,659		778,431
MGM Resorts International *		22,370		220,568
Panera Bread Co., Class A *		2,232		345,737
Penn National Gaming, Inc. *		4,743		186,352
Starbucks Corp.		54,126		2,685,191
Starwood Hotels & Resorts Worldwide, Inc.		13,671		753,682
Weight Watchers International, Inc.		1,395		66,639
Wynn Resorts Ltd.		5,859		604,473
Yum! Brands, Inc.		32,643		2,080,012

				10,218,866

Diversified Financials 2.5%
Affiliated Managers Group, Inc. *		3,641		428,255
Ameriprise Financial, Inc.		15,624		857,914
BlackRock, Inc.		7,254		1,279,388
CBOE Holdings, Inc.		6,439		183,125
CIT Group, Inc. *		13,950		526,752
Discover Financial Services		37,523		1,453,266
ETRADE Financial Corp.		18,314		156,951
Franklin Resources, Inc.		10,361		1,216,381
IntercontinentalExchange, Inc. *		5,301		724,647
Leucadia National Corp.		13,855		296,220
Moody’s Corp.		13,440		532,224
MSCI, Inc., Class A *		8,455		296,601
State Street Corp.		35,154		1,462,406
T. Rowe Price Group, Inc.		17,921		1,101,066
The Charles Schwab Corp. (b)		72,675		980,386
The NASDAQ OMX Group, Inc.		9,680		221,382

				11,716,964

Energy 8.8%
Alpha Natural Resources, Inc. *		15,401		91,482
Anadarko Petroleum Corp.		35,433		2,454,444
Baker Hughes, Inc.		30,690		1,399,464
Cabot Oil & Gas Corp.		14,638		606,160
Cameron International Corp. *		17,856		976,902
Cimarex Energy Co.		6,138		351,155
Concho Resources, Inc. *		7,281		653,397
CONSOL Energy, Inc.		15,932		481,146
Continental Resources, Inc. *		4,185		309,941
Denbury Resources, Inc. *		27,442		425,077
Diamond Offshore Drilling, Inc.		4,743		317,876
EOG Resources, Inc.		19,040		2,062,032
FMC Technologies, Inc. *		17,019		797,170
Halliburton Co.		65,844		2,157,049
Helmerich & Payne, Inc.		7,254		331,072
Hess Corp.		22,041		1,113,732
HollyFrontier Corp.		13,682		551,248
Kinder Morgan, Inc.		33,664		1,204,161
Marathon Petroleum Corp.		23,994		1,241,689
Murphy Oil Corp.		13,721		704,299
Nabors Industries Ltd. *		20,439		301,884
National-Oilwell Varco, Inc.		29,961		2,360,927
Newfield Exploration Co. *		9,486		309,528
Noble Corp. *		18,442		703,378
Noble Energy, Inc.		12,834		1,128,109
Occidental Petroleum Corp.		57,474		4,885,865
Oceaneering International, Inc.		7,565		405,030
Oil States International, Inc. *		3,627		283,776
Patterson-UTI Energy, Inc.		10,911		165,738
Peabody Energy Corp.		19,079		412,679
Pioneer Natural Resources Co.		8,649		842,067
Plains Exploration & Production Co. *		9,207		362,019
QEP Resources, Inc.		12,350		354,321
Range Resources Corp.		11,439		745,708
Rowan Cos. plc, Class A *		8,818		310,217
SandRidge Energy, Inc. *		26,832		176,286
Schlumberger Ltd.		94,860		6,865,967
SM Energy Co.		4,486		211,874
Southwestern Energy Co. *		24,404		759,696
Sunoco, Inc.		7,537		355,671
Superior Energy Services, Inc. *		11,997		249,178
Ultra Petroleum Corp. *(a)		10,625		218,450
Weatherford International Ltd. *		55,521		652,927
Whiting Petroleum Corp. *		8,167		363,595
WPX Energy, Inc. *		13,671		213,268

				41,867,654

Food & Staples Retailing 4.1%
Costco Wholesale Corp.		30,800		3,014,396
CVS Caremark Corp.		91,233		4,155,663
Wal-Mart Stores, Inc.		123,876		8,993,398
Walgreen Co.		61,659		2,204,926
Whole Foods Market, Inc.		11,479		1,110,593

				19,478,976

Food, Beverage & Tobacco 2.5%
Brown-Forman Corp., Class B		11,339		726,830
Bunge Ltd.		10,323		657,059
Green Mountain Coffee Roasters, Inc. *(a)		8,679		210,986
Hillshire Brands Co.		8,370		218,206
Lorillard, Inc.		9,207		1,155,571
Monster Beverage Corp. *		10,881		641,217
PepsiCo, Inc.		111,042		8,042,772
Ralcorp Holdings, Inc. *		3,906		277,170

				11,929,811

Health Care Equipment & Services 6.6%
Aetna, Inc.		24,552		943,042
AmerisourceBergen Corp.		18,203		701,180
Baxter International, Inc.		39,339		2,308,413
Becton, Dickinson & Co.		13,392		1,017,524
C.R. Bard, Inc.		5,859		574,826
CareFusion Corp. *		15,959		419,243
Cerner Corp. *		10,323		755,024
Coventry Health Care, Inc.		10,081		419,672
Covidien plc		34,163		1,914,836
DaVita, Inc. *		6,696		651,320

58 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
DENTSPLY International, Inc.		10,066		365,094
Edwards Lifesciences Corp. *		8,091		826,172
Express Scripts Holding Co. *		56,916		3,564,080
HCA Holdings, Inc.		11,654		332,722
Henry Schein, Inc. *		6,453		495,655
Hospira, Inc. *		11,480		385,498
IDEXX Laboratories, Inc. *		3,920		372,635
Intuitive Surgical, Inc. *		2,790		1,372,094
Laboratory Corp. of America Holdings *		7,001		615,738
McKesson Corp.		16,740		1,458,221
Medtronic, Inc.		73,935		3,006,197
Omnicare, Inc.		8,091		261,987
Patterson Cos., Inc.		6,442		218,835
Quest Diagnostics, Inc.		11,160		674,845
ResMed, Inc. *		10,361		389,263
St. Jude Medical, Inc.		22,402		845,900
Stryker Corp.		20,715		1,103,281
UnitedHealth Group, Inc.		73,935		4,014,670
Universal Health Services, Inc., Class B		6,424		256,639
Varian Medical Systems, Inc. *		7,842		461,031
Zimmer Holdings, Inc.		12,603		778,613

				31,504,250

Household & Personal Products 1.4%
Church & Dwight Co., Inc.		9,765		534,536
Colgate-Palmolive Co.		31,248		3,321,975
Energizer Holdings, Inc.		4,761		328,033
Herbalife Ltd.		8,120		392,927
Mead Johnson Nutrition Co.		14,508		1,063,871
The Estee Lauder Cos., Inc., Class A		16,521		990,434

				6,631,776

Insurance 3.4%
Alleghany Corp. *		1,216		409,974
Axis Capital Holdings Ltd.		9,207		313,683
Berkshire Hathaway, Inc., Class B *		135,594		11,435,998
Erie Indemnity Co., Class A		1,953		124,543
Everest Re Group Ltd.		3,348		347,054
Loews Corp.		24,273		986,697
Markel Corp. *		709		308,344
PartnerRe Ltd.		4,743		348,136
RenaissanceRe Holdings Ltd.		3,649		281,885
The Progressive Corp.		40,329		787,625
Validus Holdings Ltd.		5,859		196,335
White Mountains Insurance Group Ltd.		405		210,738
XL Group plc		22,599		522,489

				16,273,501

Materials 4.5%
Airgas, Inc.		4,743		394,001
Albemarle Corp.		6,160		337,137
Allegheny Technologies, Inc.		7,280		215,779
Allied Nevada Gold Corp. *		5,879		191,538
AptarGroup, Inc.		4,479		226,861
Ashland, Inc.		5,041		371,169
Ball Corp.		11,525		486,009
CF Industries Holdings, Inc.		4,743		981,849
Cliffs Natural Resources, Inc.		10,081		361,303
Crown Holdings, Inc. *		10,641		385,736
Ecolab, Inc.		18,693		1,196,913
FMC Corp.		10,044		545,590
Freeport-McMoRan Copper & Gold, Inc.		67,239		2,428,000
Huntsman Corp.		13,718		197,265
LyondellBasell Industries N.V., Class A		23,800		1,162,392
Martin Marietta Materials, Inc. (a)		3,080		235,250
Molycorp, Inc. *(a)		4,255		48,975
Monsanto Co.		37,944		3,305,302
Newmont Mining Corp.		34,718		1,759,508
Nucor Corp.		20,115		757,330
Praxair, Inc.		21,204		2,237,022
Reliance Steel & Aluminum Co.		5,301		272,630
Rock-Tenn Co., Class A		5,022		335,319
Rockwood Holdings, Inc.		4,744		224,581
Royal Gold, Inc.		4,199		369,596
Sigma-Aldrich Corp.		7,304		518,803
Steel Dynamics, Inc.		15,217		185,952
The Mosaic Co.		18,485		1,070,466
The Scotts Miracle-Gro Co., Class A		2,801		116,662
Tronox Ltd., Class A		378		9,749
United States Steel Corp. (a)		11,439		222,489
Valhi, Inc.		840		10,592
Walter Energy, Inc.		4,464		145,973

				21,307,741

Media 3.8%
AMC Networks, Inc., Class A *		4,185		164,638
Charter Communications, Inc., Class A *		2,790		217,062
Clear Channel Outdoor Holdings, Inc., Class A *		4,423		23,221
Comcast Corp., Class A		191,673		6,426,796
DIRECTV *		46,314		2,412,496
Discovery Communications, Inc., Series A *		18,135		994,523
DISH Network Corp., Class A		14,839		474,700
John Wiley & Sons, Inc., Class A		3,684		181,768
Liberty Global, Inc., Series A *		18,203		1,006,080
Liberty Media Corp. - Liberty Capital, Series A *		8,121		846,858
Scripps Networks Interactive, Class A		6,441		380,663
Sirius XM Radio, Inc. *		264,734		669,777
The Washington Post Co., Class B		330		116,325
Time Warner Cable, Inc.		22,320		1,982,462
Viacom, Inc., Class B		35,991		1,799,910
Virgin Media, Inc.		19,251		530,750

				18,228,029

Pharmaceuticals, Biotechnology & Life Sciences 5.1%
Alexion Pharmaceuticals, Inc. *		13,671		1,465,668
Allergan, Inc.		21,840		1,881,079
Amgen, Inc.		55,242		4,635,909
Biogen Idec, Inc. *		17,081		2,503,904
Celgene Corp. *		31,085		2,239,363
Covance, Inc. *		4,201		200,766
Endo Health Solutions, Inc. *		8,130		258,696

See financial notes 59

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Gilead Sciences, Inc. *		53,568		3,090,338
Illumina, Inc. *		8,684		365,423
Life Technologies Corp. *		12,631		602,625
Mettler-Toledo International, Inc. *		2,241		370,011
Mylan, Inc. *		30,047		708,208
PerkinElmer, Inc.		7,841		214,059
Perrigo Co.		6,138		674,996
Regeneron Pharmaceuticals, Inc. *		5,301		784,813
Techne Corp.		2,511		172,179
Thermo Fisher Scientific, Inc.		26,226		1,504,061
United Therapeutics Corp. *		3,641		197,051
Vertex Pharmaceuticals, Inc. *		14,787		788,591
Warner Chilcott plc, Class A		12,150		165,483
Waters Corp. *		6,442		516,584
Watson Pharmaceuticals, Inc. *		8,968		729,547

				24,069,354

Real Estate 2.8%
Alexandria Real Estate Equities, Inc.		4,464		329,890
American Tower Corp.		27,900		1,964,160
AvalonBay Communities, Inc.		6,696		947,618
Boston Properties, Inc.		10,602		1,188,802
BRE Properties, Inc.		5,301		264,626
CBRE Group, Inc., Class A *		22,320		386,359
Digital Realty Trust, Inc.		8,649		644,437
Essex Property Trust, Inc.		2,511		381,622
Federal Realty Investment Trust		4,464		481,710
Host Hotels & Resorts, Inc.		51,894		793,978
Jones Lang LaSalle, Inc.		3,069		221,367
Public Storage		10,044		1,462,005
Simon Property Group, Inc.		20,721		3,288,423
SL Green Realty Corp.		6,417		517,210
The Macerich Co.		9,486		565,081

				13,437,288

Retailing 6.1%
Advance Auto Parts, Inc.		5,301		377,007
Amazon.com, Inc. *		25,110		6,233,055
AutoZone, Inc. *		2,068		747,871
Bed Bath & Beyond, Inc. *		16,740		1,124,426
CarMax, Inc. *		15,961		488,247
Dick’s Sporting Goods, Inc.		6,297		313,339
Dollar General Corp. *		15,624		797,918
Dollar Tree, Inc. *		16,740		806,366
Family Dollar Stores, Inc.		7,818		497,537
Groupon, Inc. *(a)		22,878		94,944
Kohl’s Corp.		15,903		830,137
LKQ Corp. *		10,244		386,608
Lowe’s Cos., Inc.		84,816		2,415,560
Netflix, Inc. *(a)		3,906		233,266
Nordstrom, Inc.		11,480		663,888
O’Reilly Automotive, Inc. *		8,928		758,434
PetSmart, Inc.		7,840		556,013
Priceline.com, Inc. *		3,529		2,133,527
Ross Stores, Inc.		16,182		1,119,633
Sally Beauty Holdings, Inc. *		11,422		314,105
Sears Holdings Corp. *(a)		3,359		177,187
Target Corp.		42,408		2,717,929
The Sherwin-Williams Co.		6,188		885,379
The TJX Cos., Inc.		52,452		2,401,777
Tiffany & Co.		8,999		557,488
Tractor Supply Co.		5,039		481,124
Ulta Salon, Cosmetics & Fragrance, Inc.		4,172		392,168
Urban Outfitters, Inc. *		8,121		304,862

				28,809,795

Semiconductors & Semiconductor Equipment 1.1%
Altera Corp.		22,881		854,148
Atmel Corp. *		30,539		181,096
Broadcom Corp., Class A *		33,759		1,199,457
Cree, Inc. *		8,167		230,309
Lam Research Corp. *		14,229		485,636
Marvell Technology Group Ltd.		34,727		353,521
NVIDIA Corp. *		44,919		630,214
ON Semiconductor Corp. *		31,342		195,261
Skyworks Solutions, Inc. *		13,392		407,920
Xilinx, Inc.		18,481		626,691

				5,164,253

Software & Services 15.0%
Accenture plc, Class A		49,383		3,041,993
Activision Blizzard, Inc.		29,887		351,471
Adobe Systems, Inc. *		35,154		1,099,266
Akamai Technologies, Inc. *		12,602		472,701
Alliance Data Systems Corp. *		3,627		499,257
ANSYS, Inc. *		6,696		466,711
Autodesk, Inc. *		16,010		497,110
Automatic Data Processing, Inc.		34,875		2,025,540
BMC Software, Inc. *		10,602		438,923
Citrix Systems, Inc. *		13,392		1,040,424
Cognizant Technology Solutions Corp., Class A *		21,560		1,385,877
eBay, Inc. *		78,957		3,748,089
Electronic Arts, Inc. *		23,571		314,201
Equinix, Inc. *		3,348		661,732
Facebook, Inc., Class A *(a)		35,433		640,629
FactSet Research Systems, Inc.		3,069		283,177
Fidelity National Information Services, Inc.		17,921		564,511
Fiserv, Inc. *		9,765		696,342
Genpact Ltd. *		7,358		134,283
Global Payments, Inc.		5,611		233,698
Google, Inc., Class A *		18,018		12,343,952
IAC/InterActiveCorp		5,040		261,274
Informatica Corp. *		7,422		241,957
Intuit, Inc.		19,269		1,128,007
LinkedIn Corp., Class A *		4,464		478,987
MasterCard, Inc., Class A		7,273		3,075,752
Microsoft Corp.		530,937		16,363,478
Nuance Communications, Inc. *		16,740		399,249
Oracle Corp.		271,467		8,591,931
Rackspace Hosting, Inc. *		8,370		502,033
Red Hat, Inc. *		13,719		768,813
Rovi Corp. *		7,710		118,271
Salesforce.com, Inc. *		8,928		1,296,167
ServiceNow, Inc. *(a)		837		26,031
Solera Holdings, Inc.		4,913		202,072
Symantec Corp. *		51,244		913,680
TIBCO Software, Inc. *		11,718		350,603

60 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Vantiv, Inc., Class A *		2,232		50,354
VeriFone Systems, Inc. *		7,533		261,696
Visa, Inc., Class A		37,720		4,837,590
VMware, Inc., Class A *		4,743		422,317
Zynga, Inc., Class A *		7,558		21,162

				71,251,311

Technology Hardware & Equipment 15.7%
Agilent Technologies, Inc.		24,351		904,883
Amphenol Corp., Class A		11,718		713,275
Apple, Inc.		65,896		43,836,655
Arrow Electronics, Inc. *		7,873		285,396
Cisco Systems, Inc.		381,358		7,276,311
Corning, Inc.		107,694		1,291,251
Dell, Inc. *		110,205		1,167,071
Dolby Laboratories, Inc., Class A *		3,361		111,518
EMC Corp. *		149,544		3,931,512
F5 Networks, Inc. *		5,601		546,041
FLIR Systems, Inc.		10,921		216,236
Hewlett-Packard Co.		141,437		2,387,456
Ingram Micro, Inc., Class A *		10,781		164,626
JDS Uniphase Corp. *		16,182		181,077
Juniper Networks, Inc. *		37,245		649,553
NCR Corp. *		10,921		244,521
NetApp, Inc. *		25,761		889,270
Palo Alto Networks, Inc. *		558		35,924
Polycom, Inc. *		12,132		126,415
QUALCOMM, Inc.		121,644		7,476,240
Riverbed Technology, Inc. *		11,198		223,848
Teradata Corp. *		11,997		916,331
Trimble Navigation Ltd. *		9,207		451,603
Western Digital Corp. *		16,519		690,825

				74,717,838

Telecommunication Services 0.5%
Crown Castle International Corp. *		18,693		1,186,258
Level 3 Communications, Inc. *		12,555		270,560
MetroPCS Communications, Inc. *		22,226		216,259
NII Holdings, Inc. *		11,912		74,331
SBA Communications Corp., Class A *		8,649		517,037
United States Cellular Corp. *		993		37,685

				2,302,130

Transportation 3.1%
C.H. Robinson Worldwide, Inc.		11,972		677,735
CSX Corp.		74,099		1,664,264
Delta Air Lines, Inc. *		59,637		515,860
Expeditors International of Washington, Inc.		15,121		553,580
FedEx Corp.		20,925		1,833,658
Hertz Global Holdings, Inc. *		16,649		236,083
J.B. Hunt Transport Services, Inc.		6,975		365,769
Kansas City Southern		7,812		604,102
Southwest Airlines Co.		54,975		491,476
Union Pacific Corp.		33,759		4,099,693
United Parcel Service, Inc., Class B		51,615		3,809,703

				14,851,923

Utilities 0.6%
Calpine Corp. *		27,172		476,869
EQT Corp.		10,881		587,139
ITC Holdings Corp.		3,641		262,079
NRG Energy, Inc.		16,244		346,647
ONEOK, Inc.		13,442		598,572
The AES Corp. *		45,671		520,193

				2,791,499

Total Common Stock
(Cost $424,801,434)				474,400,052




Other Investment Company 0.0% of net assets

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund		71,506		71,506

Total Other Investment Company
(Cost $71,506)				71,506



End of Investments



Collateral Invested for Securities on Loan 0.2% of net assets


State Street Institutional U.S. Government Money Market Fund		1,097,728		1,097,728

Total Collateral Invested for Securities on Loan
(Cost $1,097,728)				1,097,728



End of Collateral Invested for Securities on Loan

At 08/31/12, the tax basis cost of the fund’s investments was $425,164,612 and the unrealized appreciation and depreciation were $72,032,936 and ($22,725,990), respectively, with a net unrealized appreciation of $49,306,946.


*		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 61

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings continued

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2012 (see financial note 2(a) for additional information):


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

Common Stock¹		$474,400,052		$—		$—		$474,400,052
Other Investment Company¹		71,506		—		—		71,506

Total		$474,471,558		$—		$—		$474,471,558

Other Financial Instruments
Collateral Invested for Securities on Loan		$1,097,728		$—		$—		$1,097,728


¹		As categorized in Portfolio Holdings.

62 See financial notes

Schwab U.S. Large-Cap Growth ETF

Statement of

Assets and Liabilities

As of August 31, 2012



Assets

Investments in affiliated issuers, at value (cost $1,169,017)		$980,386
Investments in unaffiliated issuers, at value (cost $423,703,923) including securities on loan of $1,060,559	+	473,491,172

Total investments, at value (cost $424,872,940)		474,471,558
Collateral invested for securities on loan		1,097,728
Receivables:
Dividends		592,612
Income from securities on loan		2,638
Interest	+	5

Total assets		476,164,541

Liabilities

Collateral held for securities on loan		1,097,728
Payables:
Investment adviser fees	+	5,094

Total liabilities		1,102,822

Net Assets

Total assets		476,164,541
Total liabilities	—	1,102,822

Net assets		$475,061,719

Net Assets by Source
Capital received from investors		428,184,436
Net investment income not yet distributed		1,082,121
Net realized capital losses		(3,803,456	)
Net unrealized capital gains		49,598,618

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$475,061,719

13,950,000

$34.05

See financial notes 63

Schwab U.S. Large-Cap Growth ETF

Statement of

Operations

For September 1, 2011 through August 31, 2012



Investment Income

Dividends received from affiliated issuer		$15,617
Dividends received from unaffiliated issuers (net of foreign withholding tax of $16,790)		4,949,508
Interest		129
Securities on loan	+	42,348

Total investment income		5,007,602

Expenses

Investment adviser fees		501,798

Total expenses	−	501,798

Net investment income		4,505,804

Realized and Unrealized Gains (Losses)

Net realized gains on affiliated issuer		2,863
Net realized losses on unaffiliated investments		(1,901,064	)
Net realized gains on in-kind redemptions	+	10,825,074

Net realized gains		8,926,873
Net unrealized gains on affiliated issuer		62,674
Net unrealized gains on unaffiliated investments	+	43,421,454

Net unrealized gains	+	43,484,128

Net realized and unrealized gains		52,411,001

Net increase in net assets resulting from operations		$56,916,805

64 See financial notes

Schwab U.S. Large-Cap Growth ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/11-8/31/12				9/1/10-8/31/11
Net investment income		$4,505,804			$2,375,687
Net realized gains		8,926,873			4,511,853
Net unrealized gains	+	43,484,128			13,838,390

Net increase in net assets resulting from operations		56,916,805			20,725,930

Distributions to Shareholders

Distributions from net investment income		($4,082,865	)		($1,857,920	)

Transactions in Fund Shares

9/1/11-8/31/12

9/1/10-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares sold

5,050,000

$161,486,599

7,100,000

$214,473,454

Shares redeemed

(1,600,001

)

(48,413,567

)

(1,100,000

)

(33,132,421

)

Net transactions in fund shares

3,449,999

$113,073,032

6,000,000

$181,341,033

Shares Outstanding and Net Assets

9/1/11-8/31/12

9/1/10-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

10,500,001

$309,154,747

4,500,001

$108,945,704

Total increase

3,449,999

165,906,972

6,000,000

200,209,043

End of period

13,950,000

$475,061,719

10,500,001

$309,154,747

Net investment income not yet distributed

$1,082,121

$670,813

See financial notes 65

Schwab U.S. Large-Cap Value ETF™

Financial Statements

Financial Highlights


	9/1/11–			9/1/10–			12/9/09¹–
	8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		27.34			24.36			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.82			0.70			0.47
Net realized and unrealized gains (losses)		3.89			2.99			(0.78	)

Total from investment operations		4.71			3.69			(0.31	)
Less distributions:
Distributions from net investment income		(0.81	)		(0.71	)		(0.33	)

Net asset value at end of period		31.24			27.34			24.36

Total return (%)		17.53			15.12			(1.29	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.13			0.13			0.14	^3,4
Gross operating expenses		0.13			0.13			0.14	³
Net investment income (loss)		2.89			2.68			2.98	³
Portfolio turnover rate⁵		8			7			5	²
Net assets, end of period ($ x 1,000)		385,791			241,994			84,052

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 8/31/10 is a blended rate.

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

66 See financial notes

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings as of August 31, 2012

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	.5%	Common Stock		353,175,999		383,851,887
	0	.0%	Rights		4,146		—
	0	.2%	Other Investment Company		663,331		663,331


	99	.7%	Total Investments		353,843,476		384,515,218
	0	.2%	Collateral Invested for Securities on Loan		888,699		888,699
	0	.1%	Other Assets and Liabilities, Net				386,734


	100	.0%	Net Assets				385,790,651


	Number		Value
Security	of Shares		($)

Common Stock 99.5% of net assets

Automobiles & Components 1.0%
Ford Motor Co.		207,917		1,941,945
General Motors Co. *		31,698		676,752
Harley-Davidson, Inc.		12,844		538,934
Lear Corp.		5,648		219,312
The Goodyear Tire & Rubber Co. *		13,338		162,724
TRW Automotive Holdings Corp. *		5,727		250,327

				3,789,994

Banks 5.3%
BB&T Corp.		37,791		1,191,928
BOK Financial Corp.		1,398		80,483
City National Corp.		2,739		140,648
Comerica, Inc.		10,956		336,459
Commerce Bancshares, Inc.		4,893		196,845
Cullen/Frost Bankers, Inc.		3,237		179,977
Fifth Third Bancorp		51,376		777,833
First Republic Bank		4,265		139,423
Hudson City Bancorp, Inc.		26,676		191,801
Huntington Bancshares, Inc.		47,101		310,867
KeyCorp		51,870		437,264
M&T Bank Corp.		6,916		601,000
New York Community Bancorp, Inc. (a)		23,712		314,421
People’s United Financial, Inc.		19,776		236,719
PNC Financial Services Group, Inc.		28,899		1,796,362
Regions Financial Corp.		76,817		534,646
TFS Financial Corp. *		4,940		43,670
U.S. Bancorp		104,635		3,495,855
Wells Fargo & Co.		273,676		9,313,194
Zions Bancorp.		9,880		190,190

				20,509,585

Capital Goods 8.0%
3M Co.		35,321		3,270,725
Eaton Corp.		18,278		817,392
Engility Holdings, Inc. *		891		16,492
General Dynamics Corp.		16,502		1,081,046
General Electric Co.		579,709		12,005,773
Honeywell International, Inc.		39,251		2,294,221
Hubbell, Inc., Class B		2,982		241,005
Ingersoll-Rand plc		16,314		762,843
L-3 Communications Holdings, Inc.		5,434		381,684
Lockheed Martin Corp.		14,079		1,283,160
Masco Corp.		19,774		280,000
McDermott International, Inc. *		12,597		140,331
Northrop Grumman Corp.		12,751		852,914
Owens Corning *		6,255		208,667
Parker Hannifin Corp.		8,398		671,672
Raytheon Co.		18,203		1,028,834
Rockwell Automation, Inc.		7,904		569,562
Tyco International Ltd.		25,419		1,433,123
United Technologies Corp.		43,472		3,471,239

				30,810,683

Commercial & Professional Services 0.6%
Avery Dennison Corp.		5,588		174,513
Cintas Corp.		6,142		248,260
Iron Mountain, Inc.		8,480		278,144
Manpower, Inc.		4,446		164,991
Pitney Bowes, Inc. (a)		9,880		131,997
R.R. Donnelley & Sons Co. (a)		10,127		111,194
Republic Services, Inc.		16,621		459,571
Waste Management, Inc.		23,786		822,520

				2,391,190

Consumer Durables & Apparel 0.8%
D.R. Horton, Inc.		15,189		288,439
Garmin Ltd. (a)		6,669		269,094
Hasbro, Inc.		6,389		239,651
Leggett & Platt, Inc.		7,410		175,913
Lennar Corp., Class A		8,892		288,368
Mattel, Inc.		18,525		650,969
Newell Rubbermaid, Inc.		15,971		286,360
Polaris Industries, Inc.		3,558		267,526
Tupperware Brands Corp.		3,211		171,724
Whirlpool Corp.		4,238		319,800

				2,957,844

Consumer Services 1.9%
Carnival Corp.		21,936		760,741
Darden Restaurants, Inc.		7,116		369,676
H&R Block, Inc.		16,055		265,871
International Game Technology		16,434		201,974
McDonald’s Corp.		55,822		4,995,511
Royal Caribbean Cruises Ltd.		7,470		201,839
Wyndham Worldwide Corp.		8,151		424,993

				7,220,605

See financial notes 67

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Diversified Financials 8.1%
American Express Co.		56,563		3,297,623
Bank of America Corp.		590,824		4,720,684
Capital One Financial Corp.		31,808		1,798,106
Citigroup, Inc.		160,528		4,769,287
CME Group, Inc.		17,515		961,573
Eaton Vance Corp.		6,175		167,281
Invesco Ltd.		24,782		586,838
Jefferies Group, Inc.		8,151		119,738
JPMorgan Chase & Co.		208,715		7,751,675
Legg Mason, Inc.		7,052		173,338
LPL Financial Holdings, Inc.		3,000		86,010
Morgan Stanley		74,732		1,120,980
Northern Trust Corp.		11,856		550,593
NYSE Euronext		13,868		347,393
Raymond James Financial, Inc.		6,128		215,706
SEI Investments Co.		7,971		173,369
SLM Corp.		26,619		419,249
TD Ameritrade Holding Corp.		11,856		202,856
The Bank of New York Mellon Corp.		66,031		1,488,339
The Goldman Sachs Group, Inc.		22,971		2,428,494

				31,379,132

Energy 12.5%
Apache Corp.		21,424		1,837,108
Arch Coal, Inc. (a)		11,609		70,931
Chesapeake Energy Corp.		36,144		699,386
Chevron Corp.		108,411		12,159,378
Cobalt International Energy, Inc. *		10,127		229,984
ConocoPhillips		69,654		3,955,651
Devon Energy Corp.		20,995		1,214,141
Exxon Mobil Corp.		256,858		22,423,703
Marathon Oil Corp.		38,779		1,078,832
Phillips 66		34,086		1,431,612
Spectra Energy Corp.		35,517		1,003,710
The Williams Cos., Inc.		34,273		1,105,990
Tidewater, Inc.		2,739		129,911
Valero Energy Corp.		30,206		944,239

				48,284,576

Food & Staples Retailing 0.5%
Safeway, Inc. (a)		13,058		204,358
Sysco Corp.		32,310		978,993
The Kroger Co.		28,688		639,168

				1,822,519

Food, Beverage & Tobacco 9.1%
Altria Group, Inc.		112,572		3,822,945
Archer-Daniels-Midland Co.		33,005		882,884
Beam, Inc.		8,727		509,308
Campbell Soup Co.		10,868		381,902
Coca-Cola Enterprises, Inc.		16,502		487,304
ConAgra Foods, Inc.		22,659		568,967
Constellation Brands, Inc., Class A *		9,633		317,311
Dr. Pepper Snapple Group, Inc.		11,498		515,225
General Mills, Inc.		33,532		1,318,814
H.J. Heinz Co.		17,637		982,734
Hormel Foods Corp.		7,657		219,909
Ingredion, Inc.		4,233		227,862
Kellogg Co.		13,338		675,570
Kraft Foods, Inc., Class A		96,824		4,021,101
McCormick & Co., Inc. Non Voting Shares		7,263		446,239
Molson Coors Brewing Co., Class B		8,398		374,047
Philip Morris International, Inc.		94,601		8,447,869
Reynolds American, Inc.		18,067		832,889
Smithfield Foods, Inc. *		8,151		157,477
The Coca-Cola Co.		229,216		8,572,678
The Hershey Co.		8,645		620,884
The J.M. Smucker Co.		6,064		515,258
Tyson Foods, Inc., Class A		15,561		243,685

				35,142,862

Health Care Equipment & Services 1.0%
Boston Scientific Corp. *		78,499		423,895
Cardinal Health, Inc.		19,019		752,201
CIGNA Corp.		15,561		712,227
Hologic, Inc. *		14,326		281,219
Humana, Inc.		8,992		630,159
WellPoint, Inc.		18,103		1,083,827

				3,883,528

Household & Personal Products 3.3%
Avon Products, Inc.		23,465		362,534
Kimberly-Clark Corp.		21,489		1,796,481
The Clorox Co.		7,052		513,033
The Procter & Gamble Co.		150,917		10,140,113

				12,812,161

Insurance 4.3%
ACE Ltd.		18,525		1,365,848
Aflac, Inc.		25,724		1,187,934
Allied World Assurance Co. Holdings AG		1,997		156,824
American Financial Group, Inc.		4,752		178,485
American International Group, Inc. *		39,339		1,350,508
Aon plc		17,784		924,057
Arch Capital Group Ltd. *		7,478		298,447
Assurant, Inc.		4,582		161,516
Assured Guaranty Ltd.		9,139		120,635
Brown & Brown, Inc.		6,422		168,513
Cincinnati Financial Corp.		8,218		317,708
CNA Financial Corp.		1,682		43,934
Fidelity National Financial, Inc., Class A		11,992		225,929
Genworth Financial, Inc., Class A *		26,952		142,576
Hartford Financial Services Group, Inc.		24,153		433,063
HCC Insurance Holdings, Inc.		5,470		180,948
Lincoln National Corp.		15,504		360,003
Marsh & McLennan Cos., Inc.		29,607		1,011,671
MetLife, Inc.		45,635		1,557,523
Old Republic International Corp.		13,338		115,107
Principal Financial Group, Inc.		15,808		433,772
Prudential Financial, Inc.		26,676		1,454,109
Reinsurance Group of America, Inc.		4,052		238,014
The Allstate Corp.		25,248		941,245
The Chubb Corp.		15,026		1,110,271
The Travelers Cos., Inc.		21,736		1,407,189

68 See financial notes

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Torchmark Corp.		5,323		272,431
Unum Group		15,997		312,101
W.R. Berkley Corp.		6,110		228,392

				16,698,753

Materials 2.9%
Air Products & Chemicals, Inc.		10,868		897,479
Alcoa, Inc.		57,798		494,751
Bemis Co., Inc.		5,727		173,299
Celanese Corp., Series A		8,645		330,758
E.I. du Pont de Nemours & Co.		51,018		2,538,146
Eastman Chemical Co.		8,606		475,568
International Flavors & Fragrances, Inc.		4,482		271,251
International Paper Co.		22,183		766,644
MeadWestvaco Corp.		9,353		268,992
Owens-Illinois, Inc. *		8,892		155,432
PPG Industries, Inc.		8,269		909,755
Sealed Air Corp.		9,671		138,005
Sonoco Products Co.		5,481		167,664
Southern Copper Corp.		9,386		305,420
The Dow Chemical Co.		65,483		1,919,307
The Valspar Corp.		4,731		252,352
Titanium Metals Corp.		4,492		54,982
Vulcan Materials Co.		6,389		248,660
Weyerhaeuser Co.		29,146		726,027

				11,094,492

Media 3.4%
Cablevision Systems Corp., Class A		12,948		193,573
CBS Corp., Class B Non Voting Shares		33,312		1,210,558
Gannett Co., Inc.		13,091		199,769
News Corp., Class A		119,248		2,789,211
Omnicom Group, Inc.		15,067		773,992
The Interpublic Group of Cos., Inc.		24,947		265,436
The McGraw-Hill Cos., Inc.		15,158		776,089
The Walt Disney Co.		91,390		4,521,063
Time Warner, Inc.		52,858		2,196,250

				12,925,941

Pharmaceuticals, Biotechnology & Life Sciences 10.0%
Abbott Laboratories		86,409		5,663,246
Bristol-Myers Squibb Co.		92,440		3,051,444
Eli Lilly & Co.		53,864		2,419,032
Forest Laboratories, Inc. *		13,585		471,264
Johnson & Johnson		150,176		10,126,368
Merck & Co., Inc.		167,219		7,198,778
Pfizer, Inc.		411,613		9,821,086

				38,751,218

Real Estate 2.8%
American Capital Agency Corp.		18,351		639,349
Annaly Capital Management, Inc.		52,858		914,972
Brookfield Office Properties, Inc. (a)		14,193		237,591
Camden Property Trust		4,446		308,686
Chimera Investment Corp.		55,155		140,094
DDR Corp.		13,091		199,245
Equity Residential		16,484		995,633
General Growth Properties, Inc.		21,062		433,456
HCP, Inc.		23,017		1,055,560
Health Care REIT, Inc.		11,709		684,274
Kimco Realty Corp.		22,230		451,714
Liberty Property Trust		6,475		238,798
Piedmont Office Realty Trust, Inc., Class A		9,480		160,876
Plum Creek Timber Co., Inc.		8,964		366,896
ProLogis, Inc.		25,147		859,273
Rayonier, Inc.		6,723		329,360
Realty Income Corp.		7,410		312,183
Regency Centers Corp.		4,980		244,020
UDR, Inc.		12,514		315,978
Ventas, Inc.		15,808		1,035,266
Vornado Realty Trust		10,127		822,008

				10,745,232

Retailing 2.8%
Abercrombie & Fitch Co., Class A		4,693		168,901
American Eagle Outfitters, Inc.		10,868		241,704
AutoNation, Inc. *(a)		2,100		84,420
Best Buy Co., Inc.		15,561		276,052
Expedia, Inc.		5,387		276,676
Foot Locker, Inc.		8,398		290,319
GameStop Corp., Class A (a)		7,410		141,383
Genuine Parts Co.		8,416		531,555
Guess?, Inc.		3,458		90,116
J.C. Penney Co., Inc.		8,217		214,299
Liberty Interactive Corp., Series A *		32,851		599,202
Liberty Ventures, Series A *		1,609		74,012
Limited Brands, Inc.		13,621		661,981
Macy’s, Inc.		22,971		925,961
Signet Jewelers Ltd.		4,693		215,221
Staples, Inc.		38,285		418,072
The Gap, Inc.		18,772		672,413
The Home Depot, Inc.		84,381		4,788,622
TripAdvisor, Inc. *		5,478		183,184

				10,854,093

Semiconductors & Semiconductor Equipment 3.3%
Advanced Micro Devices, Inc. *		31,663		117,786
Analog Devices, Inc.		16,508		656,028
Applied Materials, Inc.		70,611		825,443
Intel Corp.		276,393		6,862,838
KLA-Tencor Corp.		9,364		480,467
Linear Technology Corp.		11,576		382,297
LSI Corp. *		30,672		238,935
Maxim Integrated Products, Inc.		16,055		435,733
Microchip Technology, Inc.		10,458		363,415
Micron Technology, Inc. *		54,093		335,918
Texas Instruments, Inc.		62,985		1,829,084

				12,527,944

Software & Services 1.1%
Broadridge Financial Solutions, Inc.		7,410		175,469
CA, Inc.		19,960		519,559
Computer Sciences Corp.		8,466		272,690
Paychex, Inc.		17,784		591,496
SAIC, Inc.		18,681		228,095

See financial notes 69

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Synopsys, Inc. *		7,871		259,979
Total System Services, Inc.		10,249		237,572
VeriSign, Inc. *		8,716		415,579
Western Union Co.		34,827		613,303
Yahoo!, Inc. *		62,782		919,756

				4,233,498

Technology Hardware & Equipment 4.2%
Avnet, Inc. *		7,904		254,588
Harris Corp.		6,193		291,257
International Business Machines Corp.		60,386		11,766,212
Jabil Circuit, Inc.		10,374		236,320
Molex, Inc.		8,398		222,967
Motorola Solutions, Inc.		16,055		765,181
SanDisk Corp. *		13,420		553,172
Seagate Technology plc		20,838		667,024
TE Connectivity Ltd.		23,671		832,509
Xerox Corp.		73,750		543,538

				16,132,768

Telecommunication Services 5.5%
AT&T, Inc.		321,841		11,792,254
CenturyLink, Inc.		34,017		1,437,559
Frontier Communications Corp. (a)		54,678		252,612
Sprint Nextel Corp. *		162,773		789,449
Telephone & Data Systems, Inc.		5,187		127,185
Verizon Communications, Inc.		155,363		6,671,287
Windstream Corp. (a)		32,301		318,811

				21,389,157

Transportation 0.4%
Norfolk Southern Corp.		17,802		1,289,933
United Continental Holdings, Inc. *		18,177		335,366

				1,625,299

Utilities 6.7%
AGL Resources, Inc.		6,422		254,632
Alliant Energy Corp.		5,976		263,422
Ameren Corp.		13,291		434,882
American Electric Power Co., Inc.		26,429		1,136,183
American Water Works Co., Inc.		9,633		355,169
Aqua America, Inc.		7,410		185,250
Atmos Energy Corp.		4,940		172,604
CenterPoint Energy, Inc.		21,918		446,908
CMS Energy Corp.		14,402		332,254
Consolidated Edison, Inc.		15,908		964,343
Dominion Resources, Inc.		31,369		1,646,245
DTE Energy Co.		9,239		539,558
Duke Energy Corp.		37,804		2,448,943
Edison International		16,527		723,717
Energen Corp.		3,984		203,383
Entergy Corp.		9,858		671,133
Exelon Corp.		46,436		1,693,521
FirstEnergy Corp.		22,989		1,004,619
Integrys Energy Group, Inc.		4,238		228,810
MDU Resources Group, Inc.		9,386		202,268
National Fuel Gas Co.		4,586		228,841
NextEra Energy, Inc.		23,071		1,552,909
NiSource, Inc.		15,438		375,761
Northeast Utilities		17,141		645,701
NV Energy, Inc.		12,948		227,108
OGE Energy Corp.		5,434		293,708
Pepco Holdings, Inc.		12,459		240,583
PG&E Corp.		23,135		1,004,290
Pinnacle West Capital Corp.		5,976		306,987
PPL Corp.		31,863		934,542
Public Service Enterprise Group, Inc.		27,864		882,174
Questar Corp.		9,778		193,116
SCANA Corp.		6,422		304,146
Sempra Energy		12,350		817,570
TECO Energy, Inc.		10,868		188,668
The Southern Co.		47,606		2,157,980
UGI Corp.		6,225		189,738
Westar Energy, Inc.		6,932		201,860
Wisconsin Energy Corp.		12,597		478,182
Xcel Energy, Inc.		26,429		737,105

				25,868,813

Total Common Stock
(Cost $353,175,999)				383,851,887




Rights 0.0% of net assets

Retailing 0.0%
Liberty Ventures *(b)(c)		537		—

Total Rights
(Cost $4,146)				—




Other Investment Company 0.2% of net assets

Money Market Fund 0.2%
State Street Institutional U.S. Government Money Market Fund		663,331		663,331

Total Other Investment Company
(Cost $663,331)				663,331



End of Investments



Collateral Invested for Securities on Loan 0.2% of net assets


State Street Institutional U.S. Government Money Market Fund		888,699		888,699

Total Collateral Invested for Securities on Loan
(Cost $888,699)				888,699



End of Collateral Invested for Securities on Loan

70 See financial notes

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings continued

At 08/31/12, the tax basis cost of the fund’s investments was $354,172,728 and the unrealized appreciation and depreciation were $42,424,788 and ($12,082,298), respectively, with a net unrealized appreciation $30,342,490.


*		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 $0 or 0% of net assets.


REIT —		Real Estate Investment Trust

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2012 (see financial note 2(a) for additional information):


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

Common Stock¹		$383,851,887		$—		$—		$383,851,887
Rights¹		—		—		—		—
Other Investment Company¹		663,331		—		—		663,331

Total		$384,515,218		$—		$—		$384,515,218

Other Financial Instruments
Collateral Invested for Securities on Loan		$888,699		$—		$—		$888,699


¹		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

Balance

Change in

Balance

as of

Realized

Unrealized

Gross

as of

August 31,

Gains

Gross

Transfers

August 31,

Investments in Securities

2011

(Losses)

Purchases

Sales

out

2012

Rights

$—

($4,146

)

$4,146

$—

Total

$—

($4,146

)

$4,146

$—

See financial notes 71

Schwab U.S. Large-Cap Value ETF

Statement of

Assets and Liabilities

As of August 31, 2012



Assets

Investments, at value (cost $353,843,476) including securities on loan of $975,468		$384,515,218
Collateral invested for securities on loan		888,699
Receivables:
Dividends		1,276,090
Income from securities on loan		2,463
Foreign tax reclaims		994
Interest	+	13

Total assets		386,683,477

Liabilities

Collateral held for securities on loan		888,699
Payables:
Investment adviser fees	+	4,127

Total liabilities		892,826

Net Assets

Total assets		386,683,477
Total liabilities	—	892,826

Net assets		$385,790,651

Net Assets by Source
Capital received from investors		355,567,898
Net investment income not yet distributed		1,739,959
Net realized capital losses		(2,188,948	)
Net unrealized capital gains		30,671,742

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$385,790,651

12,350,000

$31.24

72 See financial notes

Schwab U.S. Large-Cap Value ETF

Statement of

Operations

For September 1, 2011 through August 31, 2012



Investment Income

Dividends (net of foreign withholding tax of $2,365)		$8,964,520
Interest		148
Securities on loan	+	9,097

Total investment income		8,973,765

Expenses

Investment adviser fees		385,832

Total expenses	−	385,832

Net investment income		8,587,933

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(1,603,715	)
Net realized gains on in-kind redemptions	+	6,141,958

Net realized gains		4,538,243
Net unrealized gains on investments	+	32,475,452

Net realized and unrealized gains		37,013,695

Net increase in net assets resulting from operations		$45,601,628

See financial notes 73

Schwab U.S. Large-Cap Value ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/11-8/31/12				9/1/10-8/31/11
Net investment income		$8,587,933			$4,681,204
Net realized gains		4,538,243			599,859
Net unrealized gains	+	32,475,452			2,436,722

Net increase in net assets resulting from operations		45,601,628			7,717,785

Distributions to Shareholders

Distributions from net investment income		($7,983,125	)		($4,010,596	)

Transactions in Fund Shares

9/1/11-8/31/12

9/1/10-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares sold

4,800,000

$143,142,091

5,800,000

$165,268,749

Shares redeemed

(1,300,001

)

(36,963,776

)

(400,000

)

(11,034,472

)

Net transactions in fund shares

3,499,999

$106,178,315

5,400,000

$154,234,277

Shares Outstanding and Net Assets

9/1/11-8/31/12

9/1/10-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

8,850,001

$241,993,833

3,450,001

$84,052,367

Total increase

3,499,999

143,796,818

5,400,000

157,941,466

End of period

12,350,000

$385,790,651

8,850,001

$241,993,833

Net investment income not yet distributed

$1,739,959

$1,146,891

74 See financial notes

Schwab U.S. Mid-Cap ETF™

Financial Statements

Financial Highlights


	9/1/11–			1/12/11¹–
	8/31/12			8/31/11


Per-Share Data ($)

Net asset value at beginning of period		23.75			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.37			0.18
Net realized and unrealized gains (losses)		2.77			(1.29	)

Total from investment operations		3.14			(1.11	)
Less distributions:
Distributions from net investment income		(0.33	)		(0.14	)

Net asset value at end of period		26.56			23.75

Total return (%)		13.32			(4.49	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.13			0.13	³
Gross operating expenses		0.13			0.13	³
Net investment income (loss)		1.53			1.18	³
Portfolio turnover rate⁴		19			9	²
Net assets, end of period ($ x 1,000)		205,840			79,550

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 75

Schwab U.S. Mid-Cap ETF

Portfolio Holdings as of August 31, 2012

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


				Cost		Value
Holdings by Category				($)		($)

	99	.7%	Common Stock		203,520,707		205,354,242
	0	.1%	Other Investment Company		136,315		136,315


	99	.8%	Total Investments		203,657,022		205,490,557
	1	.2%	Collateral Invested for Securities on Loan		2,564,597		2,564,597
	(1	.0)%	Other Assets and Liabilities, Net				(2,215,280	)


	100	.0%	Net Assets				205,839,874


	Number		Value
Security	of Shares		($)

Common Stock 99.7% of net assets

Automobiles & Components 1.3%
Allison Transmission Holdings, Inc. (a)		2,661		47,286
Gentex Corp.		17,825		312,294
Lear Corp.		12,555		487,511
Tesla Motors, Inc. *(a)		7,033		200,581
The Goodyear Tire & Rubber Co. *		31,310		381,982
TRW Automotive Holdings Corp. *		12,865		562,329
Visteon Corp. *		6,510		299,590
WABCO Holdings, Inc. *		8,215		482,385

				2,773,958

Banks 3.6%
Associated Banc-Corp.		21,390		277,214
Bank of Hawaii Corp.		5,720		264,436
BankUnited, Inc.		4,805		121,326
BOK Financial Corp.		3,468		199,653
Capitol Federal Financial, Inc.		20,331		241,329
City National Corp.		6,200		318,370
Commerce Bancshares, Inc.		11,111		446,996
Cullen/Frost Bankers, Inc.		7,440		413,664
East West Bancorp, Inc.		18,135		397,882
First Citizens BancShares, Inc., Class A		775		127,984
First Horizon National Corp.		31,362		281,004
First Niagara Financial Group, Inc.		43,836		345,866
First Republic Bank		9,765		319,218
Fulton Financial Corp.		25,695		250,012
Hancock Holding Co.		9,710		287,804
Hudson City Bancorp, Inc.		60,450		434,635
Huntington Bancshares, Inc.		109,585		723,261
People’s United Financial, Inc.		45,260		541,762
Prosperity Bancshares, Inc.		5,890		247,969
Signature Bank *		5,735		370,653
TFS Financial Corp. *		11,506		101,713
Valley National Bancorp		24,250		235,225
Zions Bancorp.		23,250		447,562

				7,395,538

Capital Goods 10.0%
Acuity Brands, Inc.		5,270		338,123
Aecom Technology Corp. *		12,200		236,558
AGCO Corp. *		12,090		508,868
Air Lease Corp. *		9,048		186,570
Alliant Techsystems, Inc.		4,185		205,023
Armstrong World Industries, Inc.		2,677		117,708
B/E Aerospace, Inc. *		12,079		486,301
Carlisle Cos., Inc.		7,750		405,635
CLARCOR, Inc.		6,242		300,490
Crane Co.		6,355		241,426
Donaldson Co., Inc.		17,496		617,434
First Solar, Inc. *(a)		6,975		139,430
Fortune Brands Home & Security, Inc. *		19,530		498,015
Foster Wheeler AG *		13,950		305,505
Gardner Denver, Inc.		6,355		383,079
Graco, Inc.		7,595		375,193
Harsco Corp.		10,075		205,429
Hubbell, Inc., Class B		7,130		576,247
IDEX Corp.		10,385		413,946
Jacobs Engineering Group, Inc. *		15,965		631,256
KBR, Inc.		18,891		511,757
Kennametal, Inc.		9,920		365,453
Lennox International, Inc.		6,045		287,198
Lincoln Electric Holdings, Inc.		10,540		434,775
Masco Corp.		45,570		645,271
McDermott International, Inc. *		28,985		322,893
MRC Global, Inc. *		2,790		61,464
MSC Industrial Direct Co., Inc. Class A		5,425		375,953
Navistar International Corp. *		7,631		167,729
Nordson Corp.		7,440		437,546
Oshkosh Corp. *		11,260		285,328
Owens Corning *		14,415		480,884
Pall Corp.		14,570		808,781
Pentair, Inc.		12,385		526,362
Polypore International, Inc. *(a)		5,060		164,045
Quanta Services, Inc. *		26,350		632,400
Regal-Beloit Corp.		5,157		350,985
Sauer-Danfoss, Inc.		1,395		53,191
Seaboard Corp. *		43		89,835
Snap-On, Inc.		7,285		505,725
Spirit AeroSystems Holdings, Inc., Class A *		14,725		366,064
SPX Corp.		6,355		406,085
Terex Corp. *		13,640		301,035
The Babcock & Wilcox Co. *		14,783		364,697
The Shaw Group, Inc. *		8,370		352,210
The Timken Co.		10,075		404,612
TransDigm Group, Inc. *		5,735		794,986
Trinity Industries, Inc.		9,920		281,133
Triumph Group, Inc.		4,805		285,561
URS Corp.		9,610		349,900
Valmont Industries, Inc.		2,890		366,308

76 See financial notes

Schwab U.S. Mid-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Wabtec Corp.		6,045		472,356
WESCO International, Inc. *		5,425		313,457
Woodward, Inc.		7,285		254,465
Xylem, Inc.		23,560		572,272

				20,564,952

Commercial & Professional Services 4.1%
Avery Dennison Corp.		13,156		410,862
Cintas Corp.		14,260		576,389
Clean Harbors, Inc. *		5,890		320,357
Copart, Inc. *		14,018		374,421
Corrections Corp. of America		12,400		413,044
Covanta Holding Corp.		14,076		240,700
Equifax, Inc.		15,190		695,398
IHS, Inc., Class A *		7,181		818,921
Iron Mountain, Inc.		19,530		640,584
KAR Auction Services, Inc. *		3,885		67,987
Manpower, Inc.		10,230		379,635
Pitney Bowes, Inc. (a)		22,785		304,408
R.R. Donnelley & Sons Co. (a)		22,372		245,645
Robert Half International, Inc.		18,290		481,027
Rollins, Inc.		9,300		216,504
The Dun & Bradstreet Corp.		6,045		489,343
Towers Watson & Co., Class A		7,285		395,721
Verisk Analytics, Inc., Class A *		17,515		849,828
Waste Connections, Inc.		14,861		430,226

				8,351,000

Consumer Durables & Apparel 5.1%
D.R. Horton, Inc.		34,720		659,333
Deckers Outdoor Corp. *(a)		4,805		237,944
Fossil, Inc. *		6,510		553,024
Hanesbrands, Inc. *		12,245		397,105
Harman International Industries, Inc.		8,835		406,675
Hasbro, Inc.		14,725		552,335
Jarden Corp.		9,807		473,972
Leggett & Platt, Inc.		17,360		412,126
Lennar Corp., Class A		20,460		663,518
Mohawk Industries, Inc. *		6,975		502,549
Newell Rubbermaid, Inc.		36,735		658,659
NVR, Inc. *		640		530,035
Polaris Industries, Inc.		8,204		616,859
PulteGroup, Inc. *		43,090		589,471
PVH Corp.		8,215		771,388
Tempur-Pedic International, Inc. *		7,905		246,952
Toll Brothers, Inc. *		18,755		613,664
Tupperware Brands Corp.		7,115		380,510
Under Armour, Inc., Class A *		9,610		559,398
Whirlpool Corp.		9,610		725,171

				10,550,688

Consumer Services 2.7%
Bally Technologies, Inc. *		5,425		240,273
Brinker International, Inc.		9,368		322,821
Choice Hotels International, Inc.		3,550		111,860
DeVry, Inc.		7,130		137,680
Dunkin’ Brands Group, Inc.		13,020		379,273
Education Management Corp. *(a)		3,381		10,109
H&R Block, Inc.		37,045		613,465
International Game Technology		38,285		470,523
ITT Educational Services, Inc. *(a)		3,297		105,537
MGM Resorts International *		41,385		408,056
Panera Bread Co., Class A *		3,720		576,228
Penn National Gaming, Inc. *		8,370		328,857
Service Corp. International		27,280		355,731
Sotheby’s		8,680		271,337
The Wendy’s Co.		38,440		164,139
Weight Watchers International, Inc.		2,314		110,540
Wyndham Worldwide Corp.		18,290		953,641

				5,560,070

Diversified Financials 2.4%
Affiliated Managers Group, Inc. *		6,510		765,706
CBOE Holdings, Inc.		11,315		321,799
ETRADE Financial Corp.		32,240		276,297
Eaton Vance Corp.		14,415		390,502
Federated Investors, Inc., Class B (a)		13,330		282,863
Jefferies Group, Inc.		18,445		270,957
Legg Mason, Inc.		16,275		400,039
LPL Financial Holdings, Inc.		7,111		203,872
MSCI, Inc., Class A *		15,345		538,303
Raymond James Financial, Inc.		13,910		489,632
SEI Investments Co.		18,290		397,808
The NASDAQ OMX Group, Inc.		16,876		385,954
Waddell & Reed Financial, Inc., Class A		11,005		325,748

				5,049,480

Energy 5.3%
Alpha Natural Resources, Inc. *		27,280		162,043
Arch Coal, Inc.		26,350		160,998
Atwood Oceanics, Inc. *		6,975		322,803
Berry Petroleum Co., Class A		6,665		245,539
CARBO Ceramics, Inc. (a)		2,480		174,542
Dresser-Rand Group, Inc. *		9,610		486,458
Dril-Quip, Inc. *		4,495		314,830
Helmerich & Payne, Inc.		12,400		565,936
Laredo Petroleum Holdings, Inc. *		2,254		49,047
Newfield Exploration Co. *		16,798		548,119
Oasis Petroleum, Inc. *		8,680		254,584
Oceaneering International, Inc.		13,640		730,286
Oil States International, Inc. *		6,499		508,482
Patterson-UTI Energy, Inc.		19,278		292,833
Plains Exploration & Production Co. *		16,275		639,933
Rosetta Resources, Inc. *		6,665		286,195
Rowan Cos. plc, Class A *		15,655		550,743
RPC, Inc. (a)		9,145		112,026
SandRidge Energy, Inc. *		49,235		323,474
SEACOR Holdings, Inc. *		2,725		234,377
SM Energy Co.		7,905		373,353
Sunoco, Inc.		13,485		636,357
Superior Energy Services, Inc. *		19,646		408,047
Teekay Corp.		4,960		146,717
Tesoro Corp.		17,670		702,206
Tidewater, Inc.		6,455		306,161
Ultra Petroleum Corp. *(a)		19,375		398,350
Unit Corp. *		6,045		240,470
World Fuel Services Corp.		8,990		334,518

See financial notes 77

Schwab U.S. Mid-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
WPX Energy, Inc. *		24,955		389,298

				10,898,725

Food, Beverage & Tobacco 1.4%
Constellation Brands, Inc., Class A *		22,630		745,432
Dean Foods Co. *		22,785		374,130
Flowers Foods, Inc.		17,515		361,685
Ingredion, Inc.		9,455		508,963
Ralcorp Holdings, Inc. *		6,975		494,946
Smithfield Foods, Inc. *		18,755		362,346

				2,847,502

Health Care Equipment & Services 4.8%
Accretive Health, Inc. *(a)		5,735		68,189
Alere, Inc. *		9,930		186,485
Allscripts Healthcare Solutions, Inc. *		23,095		242,497
AMERIGROUP Corp. *		6,045		549,611
Brookdale Senior Living, Inc. *		12,555		272,820
Community Health Systems, Inc. *		11,470		310,149
Coventry Health Care, Inc.		18,290		761,413
DENTSPLY International, Inc.		17,980		652,135
Health Net, Inc. *		10,201		237,173
Hill-Rom Holdings, Inc.		7,750		214,907
HMS Holdings Corp. *		10,540		363,208
Hologic, Inc. *		33,325		654,170
IDEXX Laboratories, Inc. *		6,910		656,865
LifePoint Hospitals, Inc. *		6,045		244,339
MEDNAX, Inc. *		6,200		429,536
Omnicare, Inc.		14,415		466,758
Owens & Minor, Inc.		7,905		221,261
Patterson Cos., Inc.		11,625		394,901
Quality Systems, Inc.		4,650		82,166
ResMed, Inc. *		17,965		674,945
STERIS Corp.		6,665		228,210
Teleflex, Inc.		5,115		337,743
Tenet Healthcare Corp. *		51,377		266,647
The Cooper Cos., Inc.		5,879		492,954
Universal Health Services, Inc., Class B		11,625		464,419
VCA Antech, Inc. *		10,695		206,841
WellCare Health Plans, Inc. *		5,471		310,151

				9,990,493

Household & Personal Products 0.9%
Church & Dwight Co., Inc.		17,515		958,771
Energizer Holdings, Inc.		8,215		566,013
Nu Skin Enterprises, Inc., Class A		7,440		308,686

				1,833,470

Insurance 6.1%
Alleghany Corp. *		2,115		713,072
Allied World Assurance Co. Holdings AG		4,639		364,301
American Financial Group, Inc.		10,850		407,526
American National Insurance Co.		1,747		123,495
Arch Capital Group Ltd. *		17,050		680,465
Arthur J. Gallagher & Co.		14,815		529,192
Aspen Insurance Holdings Ltd.		8,893		258,608
Assurant, Inc.		10,850		382,463
Assured Guaranty Ltd.		20,615		272,118
Axis Capital Holdings Ltd.		16,120		549,208
Brown & Brown, Inc.		14,880		390,451
Cincinnati Financial Corp.		19,065		737,053
Erie Indemnity Co., Class A		3,410		217,456
Everest Re Group Ltd.		5,580		578,423
Fidelity National Financial, Inc., Class A		27,761		523,017
Genworth Financial, Inc., Class A *		63,395		335,360
Hanover Insurance Group, Inc.		5,735		204,682
HCC Insurance Holdings, Inc.		12,565		415,650
Markel Corp. *		1,240		539,276
Mercury General Corp.		3,255		124,634
Old Republic International Corp.		30,225		260,842
PartnerRe Ltd.		8,142		597,623
ProAssurance Corp.		3,665		327,028
Reinsurance Group of America, Inc.		9,300		546,282
RenaissanceRe Holdings Ltd.		6,510		502,898
Torchmark Corp.		12,385		633,864
Validus Holdings Ltd.		10,791		361,606
W.R. Berkley Corp.		14,260		533,039
White Mountains Insurance Group Ltd.		749		389,735

				12,499,367

Materials 7.8%
Airgas, Inc.		8,204		681,506
Albemarle Corp.		11,145		609,966
Allegheny Technologies, Inc.		13,330		395,101
Allied Nevada Gold Corp. *		10,230		333,293
AptarGroup, Inc.		7,695		389,752
Ashland, Inc.		8,990		661,934
Bemis Co., Inc.		12,865		389,295
Cabot Corp.		7,595		264,534
Coeur d’Alene Mines Corp. *		11,160		256,568
Compass Minerals International, Inc.		4,130		296,617
Cytec Industries, Inc.		5,724		391,922
Domtar Corp.		4,650		336,846
Eastman Chemical Co.		19,220		1,062,097
Greif, Inc., Class A		5,060		225,170
Huntsman Corp.		24,800		356,624
International Flavors & Fragrances, Inc.		10,075		609,739
Intrepid Potash, Inc. *		6,510		146,019
Kronos Worldwide, Inc. (a)		2,432		41,271
Martin Marietta Materials, Inc. (a)		5,735		438,039
MeadWestvaco Corp.		22,010		633,008
Molycorp, Inc. *(a)		7,595		87,419
Owens-Illinois, Inc. *		21,080		368,478
Packaging Corp. of America		12,458		398,905
Reliance Steel & Aluminum Co.		9,455		486,271
Rock-Tenn Co., Class A		8,979		599,528
Rockwood Holdings, Inc.		8,680		410,911
Royal Gold, Inc.		7,440		654,869
RPM International, Inc.		16,740		458,844
Sealed Air Corp.		22,185		316,580
Silgan Holdings, Inc.		5,890		246,968
Sonoco Products Co.		12,500		382,375
Steel Dynamics, Inc.		27,280		333,362
The Scotts Miracle-Gro Co., Class A		5,115		213,040
The Valspar Corp.		10,850		578,739

78 See financial notes

Schwab U.S. Mid-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Titanium Metals Corp.		10,385		127,112
Tronox Ltd., Class A		509		13,127
United States Steel Corp. (a)		18,803		365,718
Vulcan Materials Co.		14,725		573,097
W.R. Grace & Co. *		7,750		447,640
Walter Energy, Inc.		7,750		253,425
Westlake Chemical Corp.		2,480		170,574

				16,006,283

Media 1.7%
AMC Networks, Inc., Class A *		7,285		286,592
Cablevision Systems Corp., Class A		30,070		449,546
Charter Communications, Inc., Class A *		5,076		394,913
Clear Channel Outdoor Holdings, Inc., Class A *		5,020		26,355
Gannett Co., Inc.		29,208		445,714
John Wiley & Sons, Inc., Class A		6,510		321,203
Lamar Advertising Co., Class A *		7,285		241,279
Morningstar, Inc.		3,255		193,380
Pandora Media, Inc. *(a)		7,906		94,793
Regal Entertainment Group, Class A (a)		9,765		135,734
The Interpublic Group of Cos., Inc.		56,420		600,309
The Washington Post Co., Class B		620		218,550

				3,408,368

Pharmaceuticals, Biotechnology & Life Sciences 2.4%
Bio-Rad Laboratories, Inc., Class A *		2,480		248,942
BioMarin Pharmaceutical, Inc. *		14,570		544,044
Bruker Corp. *		11,470		138,902
Charles River Laboratories International, Inc. *		6,200		225,184
Covance, Inc. *		6,975		333,335
Dendreon Corp. *(a)		19,197		86,195
Endo Health Solutions, Inc. *		14,570		463,617
Mettler-Toledo International, Inc. *		4,030		665,393
Onyx Pharmaceuticals, Inc. *		8,060		579,675
PerkinElmer, Inc.		14,570		397,761
Salix Pharmaceuticals Ltd. *		6,665		292,993
Techne Corp.		4,650		318,851
United Therapeutics Corp. *		5,890		318,767
Warner Chilcott plc, Class A		21,700		295,554

				4,909,213

Real Estate 9.4%
Alexandria Real Estate Equities, Inc.		7,750		572,725
American Campus Communities, Inc.		11,315		527,505
Apartment Investment & Management Co., Class A		15,035		398,127
BioMed Realty Trust, Inc.		19,685		364,763
BRE Properties, Inc.		9,668		482,627
Camden Property Trust		10,020		695,689
CBRE Group, Inc., Class A *		37,975		657,347
Chimera Investment Corp.		132,990		337,795
DDR Corp.		29,450		448,229
Digital Realty Trust, Inc.		15,345		1,143,356
Douglas Emmett, Inc.		17,440		418,386
Duke Realty Corp.		33,234		481,893
Equity Lifestyle Properties, Inc.		5,270		362,365
Essex Property Trust, Inc.		4,398		668,408
Federal Realty Investment Trust		8,060		869,755
Healthcare Trust of America, Inc.		7,198		67,661
Highwoods Properties, Inc.		9,203		300,110
Home Properties, Inc.		6,045		385,973
Hospitality Properties Trust		15,810		380,547
Jones Lang LaSalle, Inc.		5,425		391,305
Kilroy Realty Corp.		8,583		405,203
Liberty Property Trust		14,586		537,932
Mack-Cali Realty Corp.		10,850		289,695
MFA Financial, Inc.		44,346		363,194
Mid-America Apartment Communities, Inc.		5,189		352,852
National Retail Properties, Inc.		11,935		370,701
OMEGA Healthcare Investors, Inc.		13,249		318,241
Piedmont Office Realty Trust, Inc., Class A		21,987		373,119
Rayonier, Inc.		15,190		744,158
Realty Income Corp.		16,895		711,786
Regency Centers Corp.		11,304		553,896
Retail Properties of America, Inc., Class A		3,856		43,264
Senior Housing Properties Trust		20,615		456,004
SL Green Realty Corp.		11,234		905,460
Taubman Centers, Inc.		7,274		582,066
The Macerich Co.		16,585		987,968
UDR, Inc.		28,985		731,871
Washington REIT		8,215		220,655
Weingarten Realty Investors		15,035		419,928

				19,322,559

Retailing 5.7%
Aaron’s, Inc.		8,835		263,902
Abercrombie & Fitch Co., Class A		10,695		384,913
Advance Auto Parts, Inc.		9,300		661,416
American Eagle Outfitters, Inc.		24,800		551,552
Ascena Retail Group, Inc. *		15,810		313,038
AutoNation, Inc. *(a)		4,782		192,236
Big Lots, Inc. *		8,215		250,065
Chico’s FAS, Inc.		20,770		393,384
Dick’s Sporting Goods, Inc.		11,315		563,034
Dillard’s, Inc., Class A		4,185		314,210
Expedia, Inc.		12,090		620,942
Foot Locker, Inc.		19,220		664,435
GameStop Corp., Class A (a)		16,343		311,824
GNC Holdings, Inc., Class A		9,595		372,766
Guess?, Inc.		7,905		206,004
HomeAway, Inc. *(a)		3,703		87,613
LKQ Corp. *		18,755		707,814
PetSmart, Inc.		13,640		967,349
Sally Beauty Holdings, Inc. *		19,491		536,003
Signet Jewelers Ltd.		10,835		496,893
Tractor Supply Co.		8,990		858,365
TripAdvisor, Inc. *		12,400		414,656
Ulta Salon, Cosmetics & Fragrance, Inc.		7,301		686,294
Urban Outfitters, Inc. *		14,570		546,958
Williams-Sonoma, Inc.		11,315		464,141

				11,829,807

See financial notes 79

Schwab U.S. Mid-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Semiconductors & Semiconductor Equipment 2.0%
Advanced Micro Devices, Inc. *		72,695		270,425
Atmel Corp. *		55,260		327,692
Cree, Inc. *		14,415		406,503
Cypress Semiconductor Corp. *		19,220		223,144
Lam Research Corp. *		24,475		835,332
LSI Corp. *		71,765		559,049
ON Semiconductor Corp. *		58,280		363,085
Skyworks Solutions, Inc. *		23,855		726,623
Teradyne, Inc. *		23,715		370,428

				4,082,281

Software & Services 8.5%
Akamai Technologies, Inc. *		22,611		848,139
Alliance Data Systems Corp. *		6,300		867,195
ANSYS, Inc. *		11,780		821,066
Ariba, Inc. *		12,516		559,340
Booz Allen Hamilton Holding Corp.		3,047		55,943
Broadridge Financial Solutions, Inc.		15,345		363,370
Cadence Design Systems, Inc. *		34,232		451,862
Computer Sciences Corp.		19,530		629,061
Compuware Corp. *		27,125		271,250
Concur Technologies, Inc. *		5,890		426,436
DST Systems, Inc.		4,340		220,819
Equinix, Inc. *		5,890		1,164,158
FactSet Research Systems, Inc.		5,157		475,836
FleetCor Technologies, Inc. *		5,547		239,519
Fortinet, Inc. *		15,532		411,753
Gartner, Inc. *		10,850		535,882
Genpact Ltd. *		13,640		248,930
Global Payments, Inc.		9,765		406,712
IAC/InterActiveCorp		8,935		463,190
Informatica Corp. *		13,501		440,133
Jack Henry & Associates, Inc.		11,005		406,745
Lender Processing Services, Inc.		10,540		295,858
MICROS Systems, Inc. *		10,075		510,400
NetSuite, Inc. *		4,811		273,650
NeuStar, Inc., Class A *		8,160		306,571
Nuance Communications, Inc. *		29,450		702,382
Parametric Technology Corp. *		14,725		312,906
Rackspace Hosting, Inc. *		14,260		855,315
Rovi Corp. *		13,795		211,615
SAIC, Inc.		42,470		518,559
ServiceNow, Inc. *(a)		1,395		43,385
Solarwinds, Inc. *		7,285		399,801
Solera Holdings, Inc.		8,820		362,767
Splunk, Inc. *		1,763		60,647
Synopsys, Inc. *		18,600		614,358
TIBCO Software, Inc. *		21,080		630,714
Total System Services, Inc.		23,715		549,714
Vantiv, Inc., Class A *		3,691		83,269
VeriFone Systems, Inc. *		13,330		463,084

				17,502,334

Technology Hardware & Equipment 3.9%
Acme Packet, Inc. *		7,033		134,260
Anixter International, Inc.		3,565		214,363
Arrow Electronics, Inc. *		13,950		505,687
Avnet, Inc. *		18,290		589,121
AVX Corp.		6,312		64,635
Brocade Communications Systems, Inc. *		56,110		325,438
Diebold, Inc.		8,060		262,595
Dolby Laboratories, Inc., Class A *		6,510		216,002
EchoStar Corp., Class A *		5,044		136,238
FLIR Systems, Inc.		19,530		386,694
Harris Corp.		14,260		670,648
Ingram Micro, Inc., Class A *		19,065		291,122
IPG Photonics Corp. *		4,030		247,805
Jabil Circuit, Inc.		24,335		554,351
JDS Uniphase Corp. *		29,760		333,014
Lexmark International, Inc., Class A (a)		8,790		190,831
Molex, Inc.		18,600		493,830
National Instruments Corp.		11,625		299,460
NCR Corp. *		19,840		444,218
Palo Alto Networks, Inc. *		620		39,916
Polycom, Inc. *		20,099		209,432
Riverbed Technology, Inc. *		19,840		396,602
Trimble Navigation Ltd. *		15,810		775,480
Zebra Technologies Corp., Class A *		6,510		242,758

				8,024,500

Telecommunication Services 1.6%
Clearwire Corp., Class A *(a)		45,105		72,168
Frontier Communications Corp. (a)		126,945		586,486
Level 3 Communications, Inc. *		20,476		441,258
MetroPCS Communications, Inc. *		40,765		396,644
NII Holdings, Inc. *		21,235		132,506
SBA Communications Corp., Class A *		15,157		906,086
Telephone & Data Systems, Inc.		11,935		292,646
tw telecom, Inc. *		18,968		477,045
United States Cellular Corp. *		2,015		76,469

				3,381,308

Transportation 1.8%
Hertz Global Holdings, Inc. *		29,760		421,997
J.B. Hunt Transport Services, Inc.		12,090		634,000
Kansas City Southern		13,795		1,066,767
Kirby Corp. *		6,975		367,234
Landstar System, Inc.		5,890		278,420
Ryder System, Inc.		6,355		254,263
United Continental Holdings, Inc. *		41,695		769,273

				3,791,954

Utilities 7.2%
AGL Resources, Inc.		14,725		583,846
Alliant Energy Corp.		13,795		608,084
American Water Works Co., Inc.		22,010		811,509
Aqua America, Inc.		17,360		434,000
Atmos Energy Corp.		11,470		400,762
Cleco Corp.		7,595		310,863
CMS Energy Corp.		33,170		765,232
Energen Corp.		9,145		466,852
GenOn Energy, Inc. *		95,480		241,564
Great Plains Energy, Inc.		17,205		366,811
Hawaiian Electric Industries, Inc.		11,935		316,636

80 See financial notes

Schwab U.S. Mid-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
IDACORP, Inc.		6,200		256,990
Integrys Energy Group, Inc.		9,765		527,212
ITC Holdings Corp.		6,510		468,590
MDU Resources Group, Inc.		21,855		470,975
National Fuel Gas Co.		10,417		519,808
NiSource, Inc.		35,786		871,031
NRG Energy, Inc.		29,140		621,848
NV Energy, Inc.		29,605		519,272
OGE Energy Corp.		12,400		670,220
Pepco Holdings, Inc.		28,985		559,700
Piedmont Natural Gas Co., Inc.		8,990		280,758
Pinnacle West Capital Corp.		13,625		699,916
Questar Corp.		22,630		446,943
SCANA Corp.		14,741		698,134
TECO Energy, Inc.		25,168		436,916
UGI Corp.		14,260		434,645
Vectren Corp.		10,075		284,216
Westar Energy, Inc.		15,761		458,960
WGL Holdings, Inc.		6,355		248,099

				14,780,392

Total Common Stock
(Cost $203,520,707)				205,354,242




Other Investment Company 0.1% of net assets

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund		136,315		136,315

Total Other Investment Company
(Cost $136,315)				136,315



End of Investments



Collateral Invested for Securities on Loan 1.2% of net assets


State Street Institutional U.S. Government Money Market Fund		2,564,597		2,564,597

Total Collateral Invested for Securities on Loan
(Cost $2,564,597)				2,564,597



End of Collateral Invested for Securities on Loan

At 08/31/12, the tax basis cost of the fund’s investments was $203,946,284 and the unrealized appreciation and depreciation were $16,542,066 and ($14,997,793), respectively, with a net unrealized appreciation of $1,544,273.


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


REIT —		Real Estate Investment Trust

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2012 (see financial note 2(a) for additional information):


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

Common Stock¹		$205,354,242		$—		$—		$205,354,242
Other Investment Company¹		136,315		—		—		136,315

Total		$205,490,557		$—		$—		$205,490,557

Other Financial Instruments
Collateral Invested for Securities on Loan		$2,564,597		$—		$—		$2,564,597


¹		As categorized in Portfolio Holdings.

See financial notes 81

Schwab U.S. Mid-Cap ETF

Statement of

Assets and Liabilities

As of August 31, 2012



Assets

Investments, at value (cost $203,657,022) including securities on loan of $2,507,985		$205,490,557
Collateral invested for securities on loan		2,564,597
Receivables:
Fund shares sold		1,327,992
Dividends		331,841
Income from securities on loan		11,883
Interest	+	3

Total assets		209,726,873

Liabilities

Collateral held for securities on loan		2,564,597
Payables:
Investments bought		1,320,209
Investment adviser fees	+	2,193

Total liabilities		3,886,999

Net Assets

Total assets		209,726,873
Total liabilities	—	3,886,999

Net assets		$205,839,874

Net Assets by Source
Capital received from investors		205,677,935
Net investment income not yet distributed		564,147
Net realized capital losses		(2,235,743	)
Net unrealized capital gains		1,833,535

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$205,839,874

7,750,001

$26.56

82 See financial notes

Schwab U.S. Mid-Cap ETF

Statement of

Operations

For September 1, 2011 through August 31, 2012



Investment Income

Dividends		$2,504,601
Interest		74
Securities on loan	+	76,475

Total investment income		2,581,150

Expenses

Investment adviser fees		202,663

Total expenses	−	202,663

Net investment income		2,378,487

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(2,100,408	)
Net realized gains on in-kind redemptions	+	5,490,632

Net realized gains		3,390,224
Net unrealized gains on investments	+	12,136,881

Net realized and unrealized gains		15,527,105

Net increase in net assets resulting from operations		$17,905,592

See financial notes 83

Schwab U.S. Mid-Cap ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/11-8/31/12				*1/12/11-8/31/11**
Net investment income		$2,378,487			$448,890
Net realized gains		3,390,224			473,873
Net unrealized gains (losses)	+	12,136,881			(10,303,346	)

Net increase (decrease) in net assets resulting from operations		17,905,592			(9,380,583	)

Distributions to Shareholders

Distributions from net investment income		($1,917,350	)		($326,850	)

Transactions in Fund Shares

9/1/11-8/31/12

1/12/11*-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares sold

6,500,000

$161,782,743

4,750,001

$123,751,580

Shares redeemed

(2,100,000

)

(51,481,582

)

(1,400,000

)

(34,493,676

)

Net transactions in fund shares

4,400,000

$110,301,161

3,350,001

$89,257,904

Shares Outstanding and Net Assets

9/1/11-8/31/12

1/12/11*-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

3,350,001

$79,550,471

—

$—

Total increase

4,400,000

126,289,403

3,350,001

79,550,471

End of period

7,750,001

$205,839,874

3,350,001

$79,550,471

Net investment income not yet distributed

$564,147

$122,040


*		Commencement of operations.

84 See financial notes

Schwab U.S. Small-Cap ETF™

Financial Statements

Financial Highlights


	9/1/11–			9/1/10–			10/30/09¹–
	8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		32.34			26.48			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.49			0.39			0.23
Net realized and unrealized gains (losses)		4.16			5.86			1.45	²

Total from investment operations		4.65			6.25			1.68
Less distributions:
Distributions from net investment income		(0.44	)		(0.39	)		(0.20	)

Net asset value at end of period		36.55			32.34			26.48

Total return (%)		14.52			23.55			6.67	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.13			0.13			0.14	^4,5
Gross operating expenses		0.13			0.13			0.14	⁴
Net investment income (loss)		1.44			1.17			1.05	⁴
Portfolio turnover rate⁶		12			11			8	³
Net assets, end of period ($ x 1,000)		641,516			462,523			193,310

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 8/31/10 is a blended rate.

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

See financial notes 85

Schwab U.S. Small-Cap ETF

Portfolio Holdings as of August 31, 2012

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		618,217,534		640,571,485
	0	.0%	Rights		—		47,346
	0	.0%	Other Investment Company		248,097		248,097


	99	.9%	Total Investments		618,465,631		640,866,928
	3	.1%	Collateral Invested for Securities on Loan		19,789,415		19,789,415
	(3	.0)%	Other Assets and Liabilities, Net				(19,140,143	)


	100	.0%	Net Assets				641,516,200


	Number		Value
Security	of Shares		($)

Common Stock 99.9% of net assets

Automobiles & Components 1.0%
American Axle & Manufacturing Holdings, Inc. *		26,676		297,971
Cooper Tire & Rubber Co.		24,713		494,013
Dana Holding Corp.		60,372		824,681
Dorman Products, Inc. *		10,362		305,472
Drew Industries, Inc. *		7,706		223,243
Exide Technologies *		29,465		90,163
Federal-Mogul Corp. *		10,164		95,135
Fuel Systems Solutions, Inc. *		6,373		112,165
Modine Manufacturing Co. *		18,252		127,946
Standard Motor Products, Inc.		8,246		145,459
Superior Industries International, Inc.		9,529		162,851
Tenneco, Inc. *		24,921		756,851
Tesla Motors, Inc. *(a)		22,151		631,746
Thor Industries, Inc.		17,781		559,035
Tower International, Inc. *		2,560		19,277
WABCO Holdings, Inc. *		26,676		1,566,415
Winnebago Industries, Inc. *		11,658		134,067

				6,546,490

Banks 7.2%
1st Source Corp.		6,060		138,350
Arrow Financial Corp. (a)		5,616		137,255
Associated Banc-Corp.		71,604		927,988
Astoria Financial Corp.		38,259		385,268
BancFirst Corp.		2,904		120,168
BancorpSouth, Inc.		30,956		456,291
Bank Mutual Corp.		18,519		80,743
Bank of Hawaii Corp.		18,603		860,017
Bank of the Ozarks, Inc.		10,962		351,880
BankFinancial Corp.		6,904		53,092
BankUnited, Inc.		16,146		407,686
BBCN Bancorp, Inc. *		27,379		342,785
Beneficial Mutual Bancorp, Inc. *		14,526		127,974
Berkshire Hills Bancorp, Inc.		9,828		218,673
Boston Private Financial Holdings, Inc.		30,975		293,953
Brookline Bancorp, Inc.		27,963		237,406
Camden National Corp.		3,028		111,794
Capital City Bank Group, Inc. (a)		5,323		47,588
CapitalSource, Inc.		109,069		755,848
Capitol Federal Financial, Inc.		68,094		808,276
Cardinal Financial Corp.		11,152		144,418
Cascade Bancorp *(a)		7,059		36,848
Cathay General Bancorp		31,239		511,382
Centerstate Banks, Inc.		10,970		89,735
Central Pacific Financial Corp. *		6,737		93,644
Chemical Financial Corp.		9,934		227,886
Citizens Republic Bancorp, Inc. *		15,978		327,070
City Holding Co.		5,892		201,035
Clifton Savings Bancorp, Inc.		5,616		54,812
CoBiz Financial, Inc.		14,889		105,414
Columbia Banking System, Inc.		15,608		278,447
Community Bank System, Inc.		16,497		462,576
Community Trust Bancorp, Inc.		5,539		190,486
CVB Financial Corp.		37,303		445,771
CYS Investments, Inc.		64,584		928,718
Dime Community Bancshares		12,541		175,323
Doral Financial Corp. *		47,214		50,991
East West Bancorp, Inc.		58,968		1,293,758
ESSA Bancorp, Inc.		4,227		42,862
EverBank Financial Corp.		7,617		90,414
F.N.B. Corp.		55,569		608,481
First Bancorp		6,228		61,844
First Busey Corp.		33,051		158,645
First Citizens BancShares, Inc., Class A		2,347		387,584
First Commonwealth Financial Corp.		41,453		288,513
First Community Bancshares, Inc.		5,843		86,827
First Financial Bancorp		22,963		373,838
First Financial Bankshares, Inc. (a)		12,420		431,968
First Financial Corp.		4,399		134,038
First Financial Holdings, Inc.		6,505		83,134
First Horizon National Corp.		104,247		934,053
First Interstate BancSystem, Inc.		6,172		88,260
First Merchants Corp.		11,086		156,091
First Midwest Bancorp, Inc.		29,778		351,678
First Niagara Financial Group, Inc.		144,261		1,138,219
FirstMerit Corp.		44,577		699,413
Flagstar Bancorp, Inc. *		79,176		74,703
Flushing Financial Corp.		12,509		190,637
Fulton Financial Corp.		79,539		773,914
Glacier Bancorp, Inc.		28,547		439,909
Great Southern Bancorp, Inc.		3,713		109,088
Hancock Holding Co.		30,921		916,498
Heartland Financial USA, Inc.		6,050		158,450
Home BancShares, Inc.		10,003		315,195
HomeTrust Bancshares, Inc. *		8,073		101,558
Hudson Valley Holding Corp.		6,953		117,436
IBERIABANK Corp.		11,652		546,595
Independent Bank Corp.		8,471		247,014
International Bancshares Corp.		22,779		415,945

86 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Investors Bancorp, Inc. *		18,377		315,533
Kearny Financial Corp.		6,538		63,222
Lakeland Financial Corp.		6,051		160,715
MB Financial, Inc.		21,622		441,521
Meridian Interstate Bancorp, Inc. *		3,971		59,168
MGIC Investment Corp. *		74,457		87,859
National Penn Bancshares, Inc.		50,844		452,512
Nationstar Mortgage Holdings, Inc. *		6,877		186,504
NBT Bancorp, Inc.		13,161		276,776
Northfield Bancorp, Inc.		6,284		94,260
Northwest Bancshares, Inc.		38,705		467,556
Ocwen Financial Corp. *		47,385		1,219,216
Old National Bancorp		37,770		498,564
Oriental Financial Group, Inc.		18,252		193,471
Oritani Financial Corp.		17,199		251,621
Pacific Capital Bancorp *		2,179		100,060
PacWest Bancorp		12,420		289,138
Park National Corp. (a)		5,275		355,271
Pinnacle Financial Partners, Inc. *		13,496		258,313
Popular, Inc. *		40,580		642,787
PrivateBancorp, Inc.		24,808		404,370
Prosperity Bancshares, Inc.		19,305		812,740
Provident Financial Services, Inc.		22,476		347,029
Provident New York Bancorp		14,712		126,229
Radian Group, Inc. (a)		53,028		178,174
Renasant Corp.		9,939		181,784
Republic Bancorp, Inc., Class A		4,060		91,553
Rockville Financial, Inc.		5,168		61,964
Roma Financial Corp.		3,109		29,225
S&T Bancorp, Inc.		12,636		219,235
S.Y. Bancorp, Inc.		4,923		115,149
Sandy Spring Bancorp, Inc.		9,617		176,376
SCBT Financial Corp.		5,986		240,697
Signature Bank *		18,603		1,202,312
Simmons First National Corp., Class A		6,451		150,179
Southside Bancshares, Inc.		6,887		150,894
State Bank Financial Corp.		12,285		199,017
StellarOne Corp.		9,130		120,973
Sterling Bancorp		12,248		121,623
Sterling Financial Corp.		10,881		230,677
Susquehanna Bancshares, Inc.		73,320		770,593
SVB Financial Group *		17,901		1,038,079
Synovus Financial Corp.		290,925		605,124
TCF Financial Corp.		60,324		670,803
Territorial Bancorp, Inc.		4,023		92,770
Texas Capital Bancshares, Inc.		14,775		679,945
Tompkins Financial Corp.		4,914		190,860
TowneBank (a)		11,799		173,681
TriCo Bancshares		5,892		90,501
TrustCo Bank Corp.		37,044		206,706
Trustmark Corp.		22,630		536,105
UMB Financial Corp.		13,819		677,546
Umpqua Holdings Corp.		44,522		562,758
Union First Market Bankshares Corp.		9,183		134,806
United Bankshares, Inc. (a)		19,921		484,678
United Financial Bancorp, Inc.		5,720		81,624
Univest Corp. of Pennsylvania		6,640		109,095
Valley National Bancorp		77,827		754,922
ViewPoint Financial Group, Inc.		14,264		262,886
Washington Federal, Inc.		42,657		686,778
Washington Trust Bancorp, Inc.		5,808		143,806
Webster Financial Corp.		29,378		625,164
WesBanco, Inc.		9,878		200,721
Westamerica Bancorp		11,583		539,189
Western Alliance Bancorp *		32,643		303,906
Westfield Financial, Inc.		10,555		76,418
Wilshire Bancorp, Inc. *		26,148		163,686
Wintrust Financial Corp.		14,416		539,303
WSFS Financial Corp.		3,369		136,680

				46,117,553

Capital Goods 10.9%
3D Systems Corp. *(a)		16,793		734,022
A.O. Smith Corp.		15,375		841,166
A123 Systems, Inc. *		40,311		10,428
AAON, Inc.		8,405		154,652
AAR Corp.		16,341		243,154
Accuride Corp. *		17,266		86,675
Aceto Corp.		10,349		92,520
Actuant Corp., Class A		27,240		765,989
Acuity Brands, Inc.		17,199		1,103,488
Aegion Corp. *		15,569		303,907
Aerovironment, Inc. *		6,899		164,610
Air Lease Corp. *		28,642		590,598
Aircastle Ltd.		18,954		216,455
Albany International Corp., Class A		10,649		224,907
Alliant Techsystems, Inc.		13,164		644,904
Altra Holdings, Inc.		10,584		194,851
Ameresco, Inc., Class A *		7,308		87,769
American Railcar Industries, Inc. *		3,675		104,884
American Science & Engineering, Inc.		3,540		210,524
American Superconductor Corp. *		14,526		54,472
American Woodmark Corp. *		4,087		79,124
Ampco-Pittsburgh Corp.		3,314		55,874
API Technologies Corp. *(a)		13,437		41,386
Apogee Enterprises, Inc.		11,076		175,001
Applied Industrial Technologies, Inc.		15,145		616,099
Armstrong World Industries, Inc.		8,562		376,471
Astec Industries, Inc. *		7,376		216,338
Astronics Corp. *		4,050		113,400
AZZ, Inc.		9,864		313,281
Badger Meter, Inc.		5,942		201,493
Barnes Group, Inc.		20,007		473,566
Beacon Roofing Supply, Inc. *		18,314		515,356
Belden, Inc.		18,954		646,900
Blount International, Inc. *		19,253		247,979
Brady Corp., Class A		18,619		522,822
Briggs & Stratton Corp.		19,127		331,280
Builders FirstSource, Inc. *		18,665		83,059
CAI International, Inc. *		5,047		100,284
Capstone Turbine Corp. *(a)		102,624		102,491
Carlisle Cos., Inc.		24,921		1,304,365
Cascade Corp.		3,382		165,955
Ceradyne, Inc.		9,293		220,709
Chart Industries, Inc. *		11,659		813,798
CIRCOR International, Inc.		6,965		221,835
CLARCOR, Inc.		20,358		980,034
Colfax Corp. *		18,008		592,283
Columbus McKinnon Corp. *		7,652		113,403
Comfort Systems USA, Inc.		15,252		157,401

See financial notes 87

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number			Value
Security	of Shares			($)
Commercial Vehicle Group, Inc. *		10,246	��		86,579
Crane Co.		20,140			765,119
Cubic Corp.		6,339			320,056
Curtiss-Wright Corp.		18,498			556,050
DigitalGlobe, Inc. *		14,027			291,341
Douglas Dynamics, Inc.		10,881			152,552
Ducommun, Inc. *		4,413			64,783
DXP Enterprises, Inc. *		3,690			170,146
Dycom Industries, Inc. *		13,295			193,043
Dynamic Materials Corp.		5,323			86,020
Edgen Group, Inc. *		6,054			44,981
EMCOR Group, Inc.		27,378			756,454
Encore Wire Corp.		7,504			212,513
Energy Recovery, Inc. *		27,378			68,993
EnerSys *		18,957			706,148
Enphase Energy, Inc. *(a)		3,159			15,669
EnPro Industries, Inc. *		8,161			306,364
ESCO Technologies, Inc.		10,391			368,153
Esterline Technologies Corp. *		12,063			721,367
Exelis, Inc.		73,557			742,926
Federal Signal Corp. *		25,059			149,602
Franklin Electric Co., Inc.		7,728			419,089
FreightCar America, Inc.		4,923			88,220
FuelCell Energy, Inc. *		56,843			56,275
Furmanite Corp. *		14,056			68,593
GATX Corp.		18,495			761,254
GenCorp, Inc. *		21,762			198,687
Generac Holdings, Inc.		10,989			236,813
General Cable Corp. *		19,692			533,456
GeoEye, Inc. *		6,897			185,046
Gibraltar Industries, Inc. *		12,348			134,964
Global Power Equipment Group, Inc.		7,371			143,734
Graco, Inc.		24,921			1,231,097
GrafTech International Ltd. *		54,756			513,064
Graham Corp.		3,995			75,945
Granite Construction, Inc.		13,579			374,373
Great Lakes Dredge & Dock Co.		22,602			165,221
Griffon Corp.		20,369			196,968
H&E Equipment Services, Inc. *		12,348			218,560
Harsco Corp.		31,870			649,829
HEICO Corp., Class A		17,773			528,391
Hexcel Corp. *		40,365			915,075
Houston Wire & Cable Co.		6,282			68,914
Huntington Ingalls Industries, Inc. *		18,129			726,429
IDEX Corp.		33,696			1,343,123
II-VI, Inc. *		20,938			389,447
Interline Brands, Inc. *		12,735			324,233
ITT Corp.		36,776			731,842
John Bean Technologies Corp.		11,340			180,986
Kaman Corp.		10,533			345,482
Kaydon Corp.		12,769			283,983
Kennametal, Inc.		32,292			1,189,637
L.B. Foster Co.		3,991			128,311
Lawson Products, Inc.		1,173			9,384
Layne Christensen Co. *		7,722			150,116
Lennox International, Inc.		19,319			917,846
Lindsay Corp.		4,952			323,663
MasTec, Inc. *		23,980			437,395
Meritor, Inc. *		38,133			170,455
Michael Baker Corp. *		3,312			79,057
Moog, Inc., Class A *		16,529			605,457
MRC Global, Inc. *		9,126			201,046
Mueller Industries, Inc.		14,927			643,354
Mueller Water Products, Inc., Class A		61,740			236,464
MYR Group, Inc. *		8,142			165,608
NACCO Industries, Inc., Class��A		2,181			232,058
Nordson Corp.		24,219			1,424,319
Nortek, Inc. *		4,212			216,792
Northwest Pipe Co. *		3,674			92,732
Orbital Sciences Corp. *		23,419			323,182
Orion Marine Group, Inc. *		10,344			78,821
Oshkosh Corp. *		37,206			942,800
Otter Tail Corp.		14,040			317,866
Pike Electric Corp. *		7,986			71,075
Polypore International, Inc. *(a)		16,033			519,790
Powell Industries, Inc. *		3,630			137,650
Preformed Line Products Co.		1,404			82,724
Primoris Services Corp.		11,166			137,342
Proto Labs, Inc. *(a)		1,743			54,835
Quanex Building Products Corp.		14,588			255,290
Raven Industries, Inc.		14,742			447,715
RBC Bearings, Inc. *		9,126			419,705
Regal-Beloit Corp.		16,848			1,146,675
Rexnord Corp. *		10,530			158,476
Robbins & Myers, Inc.		15,093			902,863
Rush Enterprises, Inc., Class A *		13,279			226,274
Sauer-Danfoss, Inc.		4,356			166,094
Seaboard Corp. *		156			325,914
Simpson Manufacturing Co., Inc.		15,906			404,490
Snap-On, Inc.		23,517			1,632,550
Standex International Corp.		5,616			250,698
Sterling Construction Co., Inc. *		6,899			66,851
Sun Hydraulics Corp.		7,994			185,061
TAL International Group, Inc.		10,383			353,126
Taser International, Inc. *		22,059			118,016
Tecumseh Products Co., Class A *		5,891			31,163
Teledyne Technologies, Inc. *		15,093			973,649
Tennant Co.		6,722			281,988
Terex Corp. *		43,479			959,582
Textainer Group Holdings Ltd. (a)		7,316			258,401
The Gorman-Rupp Co.		7,302			201,097
The Greenbrier Cos., Inc. *		9,681			139,890
The Keyw Holding Corp. *(a)		6,602			74,339
The Manitowoc Co., Inc.		52,122			671,331
The Middleby Corp. *		7,438			856,486
The Shaw Group, Inc. *		26,676			1,122,526
The Toro Co.		24,219			900,947
Thermon Group Holdings, Inc. *		5,445			124,473
Titan International, Inc. (a)		16,673			348,132
Titan Machinery, Inc. *		6,787			156,440
Tredegar Corp.		9,045			146,348
Trex Co., Inc. *		5,570			171,277
TriMas Corp. *		12,098			260,107
Trinity Industries, Inc.		31,568			894,637
Triumph Group, Inc.		15,444			917,837
Tutor Perini Corp. *		12,883			136,689
Twin Disc, Inc. (a)		3,640			67,376
United Rentals, Inc. *		32,994			1,066,036
Universal Forest Products, Inc.		7,751			297,871
USG Corp. *(a)		26,221			539,104
Valmont Industries, Inc.		9,126			1,156,720
Vicor Corp. *		8,712			52,446
Wabash National Corp. *		27,237			182,216

88 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Wabtec Corp.		19,305		1,508,493
Watsco, Inc.		10,530		794,594
Watts Water Technologies, Inc., Class A		11,854		434,449
WESCO International, Inc. *		17,550		1,014,039
Woodward, Inc.		23,868		833,709

				70,003,883

Commercial & Professional Services 3.1%
ABM Industries, Inc.		17,613		356,135
Acacia Research Corp. *		17,125		451,073
Acco Brands Corp. *		44,226		291,449
American Reprographics Co. *		15,231		61,229
CBIZ, Inc. *		16,966		93,992
CDI Corp.		5,324		87,686
Cenveo, Inc. *(a)		21,304		42,821
Clean Harbors, Inc. *		18,954		1,030,908
Consolidated Graphics, Inc. *		3,717		99,579
Corrections Corp. of America		40,365		1,344,558
CoStar Group, Inc. *		10,179		827,044
Courier Corp.		5,967		66,950
Covanta Holding Corp.		46,683		798,279
CRA International, Inc. *		4,096		64,922
Deluxe Corp.		20,367		577,812
EnergySolutions, Inc. *		33,051		80,975
EnerNOC, Inc. *		14,391		142,039
Ennis, Inc.		10,317		150,525
Exponent, Inc. *		5,196		270,504
FTI Consulting, Inc. *		16,497		429,087
Fuel Tech, Inc. *		6,438		31,739
G&K Services, Inc., Class A		7,419		232,734
Healthcare Services Group, Inc.		24,748		523,915
Heidrick & Struggles International, Inc.		7,324		90,232
Herman Miller, Inc.		23,074		451,328
Higher One Holdings, Inc. *(a)		12,636		155,802
Hill International, Inc. *		10,372		39,517
HNI Corp.		14,889		412,723
Huron Consulting Group, Inc. *		9,075		292,850
ICF International, Inc. *		7,777		171,405
Innerworkings, Inc. *		11,622		140,045
Insperity, Inc.		9,187		224,622
Interface, Inc.		22,553		309,653
KAR Auction Services, Inc. *		12,385		216,738
Kelly Services, Inc., Class A		11,624		143,440
Kforce, Inc. *		13,689		160,435
Kimball International, Inc., Class B		9,946		111,694
Knoll, Inc.		18,850		274,079
Korn/Ferry International *		20,358		291,119
McGrath Rentcorp		9,700		244,246
Metalico, Inc. *		16,704		38,419
Mine Safety Appliances Co.		12,716		443,407
Mistras Group, Inc. *		6,540		142,637
Mobile Mini, Inc. *		15,344		262,382
Monster Worldwide, Inc. *		48,864		340,582
Multi-Color Corp.		5,253		107,161
Navigant Consulting, Inc. *		21,066		232,779
On Assignment, Inc. *		14,908		246,131
Pendrell Corp. *		59,579		71,495
Performant Financial Corp. *		3,159		34,275
Quad Graphics, Inc. (a)		8,713		159,622
Resources Connection, Inc.		17,199		192,285
Rollins, Inc.		31,239		727,244
RPX Corp. *		8,591		100,858
Schawk, Inc.		3,878		50,647
Standard Parking Corp. *		6,188		142,881
Steelcase, Inc., Class A		33,777		327,637
Swisher Hygiene, Inc. *(a)		46,619		82,516
Sykes Enterprises, Inc. *		15,745		212,400
Team, Inc. *		7,662		239,591
Tetra Tech, Inc. *		24,693		640,536
The Advisory Board Co. *		12,858		569,995
The Brink’s Co.		18,546		412,834
The Corporate Executive Board Co.		13,213		615,197
The Geo Group, Inc.		25,623		674,141
TMS International Corp., Class A *		5,082		51,176
TrueBlue, Inc. *		15,914		247,144
United Stationers, Inc.		16,107		389,628
US Ecology, Inc.		7,170		134,796
Viad Corp.		8,154		166,912
WageWorks, Inc. *		2,503		42,701

				19,885,892

Consumer Durables & Apparel 3.4%
American Greetings Corp., Class A (a)		14,792		212,857
Arctic Cat, Inc. *		4,792		207,302
Beazer Homes USA, Inc. *		47,034		138,280
Blyth, Inc.		4,374		185,108
Brookfield Residential Properties, Inc. *		12,817		181,617
Brunswick Corp.		36,504		864,780
Callaway Golf Co.		25,787		148,275
Carter’s, Inc. *		20,709		1,153,698
Cavco Industries, Inc. *		2,541		116,378
Columbia Sportswear Co.		5,823		304,485
Crocs, Inc. *		35,514		621,140
CSS Industries, Inc.		3,607		72,032
Deckers Outdoor Corp. *(a)		15,300		757,656
Ethan Allen Interiors, Inc.		10,759		237,559
Fifth & Pacific Cos., Inc. *		37,770		500,452
G-III Apparel Group Ltd. *		6,534		207,389
Hanesbrands, Inc. *		39,312		1,274,888
Helen of Troy Ltd. *		11,717		368,382
Hovnanian Enterprises, Inc., Class A *(a)		38,912		113,623
Iconix Brand Group, Inc. *		28,048		524,498
iRobot Corp. *		11,934		300,617
JAKKS Pacific, Inc.		8,775		146,016
Jarden Corp.		31,941		1,543,708
K-Swiss, Inc., Class A *		10,896		30,836
KB Home (a)		26,874		296,689
Kenneth Cole Productions, Inc., Class A *		4,020		60,983
La-Z-Boy, Inc. *		20,841		287,606
Leapfrog Enterprises, Inc. *		18,369		199,120
M.D.C Holdings, Inc.		14,547		504,490
M/I Homes, Inc. *		7,697		148,552
Maidenform Brands, Inc. *		9,296		206,278
Marine Products Corp.		6,171		36,224
Meritage Homes Corp. *		10,702		398,864
Movado Group, Inc.		7,047		247,772

See financial notes 89

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
National Presto Industries, Inc. (a)		1,885		137,077
Oxford Industries, Inc.		5,808		316,710
Perry Ellis International, Inc. *		5,239		108,028
Pool Corp.		19,305		760,424
PulteGroup, Inc. *		135,486		1,853,448
Quiksilver, Inc. *		53,391		167,114
Sealy Corp. *(a)		19,971		31,954
Skechers U.S.A., Inc., Class A *		15,979		346,265
Skullcandy, Inc. *(a)		6,534		100,232
Smith & Wesson Holding Corp. *		25,785		207,311
Standard Pacific Corp. *		42,873		287,249
Steven Madden Ltd. *		16,497		708,051
Sturm Ruger & Co., Inc. (a)		7,557		327,218
The Jones Group, Inc.		32,104		406,758
The Ryland Group, Inc.		17,483		468,719
The Warnaco Group, Inc. *		16,848		866,324
True Religion Apparel, Inc.		10,232		237,280
Tumi Holdings, Inc. *(a)		7,394		155,718
UniFirst Corp.		5,967		378,964
Universal Electronics, Inc. *		5,710		87,192
Vera Bradley, Inc. *(a)		9,323		197,927
Weyco Group, Inc.		3,035		69,623
Wolverine World Wide, Inc.		19,656		924,422
Zagg, Inc. *(a)		9,075		68,335

				21,810,497

Consumer Services 3.7%
AFC Enterprises, Inc. *		9,829		236,093
Ambassadors Group, Inc.		7,127		38,700
American Public Education, Inc. *		7,131		240,315
Ameristar Casinos, Inc.		13,118		221,038
Bally Technologies, Inc. *		17,207		762,098
Biglari Holdings, Inc. *		483		169,726
BJ’s Restaurants, Inc. *		9,294		381,519
Bloomin’ Brands, Inc. *		11,934		154,903
Bob Evans Farms, Inc.		11,674		459,255
Boyd Gaming Corp. *(a)		22,518		135,333
Bravo Brio Restaurant Group, Inc. *		7,275		117,637
Bridgepoint Education, Inc. *(a)		7,391		72,875
Brinker International, Inc.		30,888		1,064,400
Buffalo Wild Wings, Inc. *		7,371		565,945
Caesars Entertainment Corp. *(a)		706		5,069
Cambium Learning Group, Inc. *		3,438		3,300
Capella Education Co. *		4,462		138,634
Career Education Corp. *		24,183		76,176
Caribou Coffee Co., Inc. *		8,230		105,262
CEC Entertainment, Inc.		7,371		218,992
Choice Hotels International, Inc.		11,583		364,980
Churchill Downs, Inc.		5,265		301,316
Chuy’s Holdings, Inc. *		2,106		43,426
Coinstar, Inc. *(a)		12,216		624,482
Corinthian Colleges, Inc. *		30,867		62,351
Cracker Barrel Old Country Store, Inc.		9,126		574,755
Del Frisco’s Restaurant Group, Inc. *		2,106		31,253
Denny’s Corp. *		38,859		190,021
DineEquity, Inc. *		6,669		353,257
Domino’s Pizza, Inc.		22,815		808,564
Education Management Corp. *(a)		10,993		32,869
Gaylord Entertainment Co. *		16,688		676,532
Grand Canyon Education, Inc. *		14,742		311,351
Hillenbrand, Inc.		25,059		454,069
Ignite Restaurant Group, Inc. *		2,224		33,316
International Speedway Corp., Class A		11,769		313,173
Interval Leisure Group, Inc.		15,622		288,226
Isle of Capri Casinos, Inc. *		9,560		59,846
ITT Educational Services, Inc. *(a)		10,584		338,794
Jack in the Box, Inc. *		17,451		455,297
K12, Inc. *(a)		15,444		325,096
Krispy Kreme Doughnuts, Inc. *		23,166		170,965
Life Time Fitness, Inc. *		15,977		758,588
Lincoln Educational Services Corp.		9,142		38,853
Marriott Vacations Worldwide Corp. *		12,227		392,731
Matthews International Corp., Class A		11,261		337,042
Morgans Hotel Group Co. *		11,408		59,093
National American University Holdings, Inc.		3,994		16,216
Orient-Express Hotels Ltd., Class A *		37,311		327,964
Papa John’s International, Inc. *		7,722		397,606
Peet’s Coffee & Tea, Inc. *		5,292		388,962
Pinnacle Entertainment, Inc. *		25,059		277,403
Red Robin Gourmet Burgers, Inc. *		5,378		166,772
Regis Corp.		22,931		412,987
Ruby Tuesday, Inc. *		24,921		168,466
Scientific Games Corp., Class A *		24,171		177,173
Service Corp. International		88,452		1,153,414
Shuffle Master, Inc. *		21,429		325,078
Six Flags Entertainment Corp.		22,113		1,221,301
Sonic Corp. *		24,034		225,199
Sotheby’s		26,734		835,705
Speedway Motorsports, Inc.		5,141		78,812
Steiner Leisure Ltd. *		5,616		262,492
Stewart Enterprises, Inc., Class A		32,397		238,442
Strayer Education, Inc. (a)		4,914		318,329
Texas Roadhouse, Inc.		27,027		464,054
The Cheesecake Factory, Inc.		20,834		691,897
The Marcus Corp.		7,726		99,743
The Wendy’s Co.		123,507		527,375
Universal Technical Institute, Inc.		8,806		105,760
Vail Resorts, Inc.		14,742		759,950
WMS Industries, Inc. *		22,122		352,403

				23,561,019

Diversified Financials 2.1%
Artio Global Investors, Inc.		12,530		38,843
Asset Acceptance Capital Corp. *		4,267		27,778
BGC Partners, Inc., Class A		37,415		168,742
Calamos Asset Management, Inc., Class A		7,985		88,873
Cardtronics, Inc. *		17,200		485,900
Cash America International, Inc.		11,723		455,087
Cohen & Steers, Inc. (a)		8,262		278,842
Cowen Group, Inc., Class A *		32,869		85,788
Credit Acceptance Corp. *		2,598		255,799
DFC Global Corp. *		17,159		319,501
Duff & Phelps Corp., Class A		12,918		171,163
Encore Capital Group, Inc. *		8,636		242,067
Epoch Holding Corp.		7,439		156,665
Evercore Partners, Inc., Class A		10,262		253,471

90 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


		Number		Value
Security		of Shares		($)
EZCORP, Inc., Class A *			18,191		412,026
FBR & Co. *			18,954		57,431
Federated Investors, Inc., Class B (a)			42,822		908,683
Financial Engines, Inc. *			16,708		355,880
First Cash Financial Services, Inc. *			10,430		465,387
Gain Capital Holdings, Inc.			9,828		43,931
GAMCO Investors, Inc., Class A			1,527		68,868
GFI Group, Inc.			26,511		74,231
Gleacher & Co., Inc. *			29,415		24,414
Green Dot Corp., Class A *(a)			8,208		93,982
Greenhill & Co., Inc.			11,622		507,300
HFF, Inc., Class A *			14,208		188,966
ICG Group, Inc. *			14,672		133,809
Interactive Brokers Group, Inc., Class A			15,900		219,738
INTL FCStone, Inc. *			6,630		120,202
Investment Technology Group, Inc. *			15,444		130,811
Janus Capital Group, Inc.			73,901		644,417
KBW, Inc.			11,545		176,523
Knight Capital Group, Inc., Class A *			39,317		108,515
Ladenburg Thalmann Financial Services, Inc. *			44,001		61,161
Life Partners Holdings, Inc. (a)			3,510		5,581
MarketAxess Holdings, Inc.			13,091		426,374
Nelnet, Inc., Class A			10,829		259,355
Netspend Holdings, Inc. *			13,437		127,383
NewStar Financial, Inc. *			12,531		148,242
Oppenheimer Holdings, Inc., Class A			4,225		63,037
PHH Corp. *			22,464		391,997
PICO Holdings, Inc. *			9,178		199,897
Piper Jaffray Cos., Inc. *			7,785		191,589
Portfolio Recovery Associates, Inc. *			7,020		704,457
Pzena Investment Management, Inc., Class A			3,993		20,085
Safeguard Scientifics, Inc. *			7,624		118,629
Stifel Financial Corp. *			22,464		734,123
SWS Group, Inc. *			13,074		78,052
The First Marblehead Corp. *			25,787		29,913
Virtus Investment Partners, Inc. *			2,457		210,417
Waddell & Reed Financial, Inc., Class A			35,100		1,038,960
Westwood Holdings Group, Inc.			3,159		116,093
WisdomTree Investments, Inc. *			25,034		156,212
World Acceptance Corp. *			5,809		424,057

					13,269,247

Energy 5.3%
Abraxas Petroleum Corp. *			36,681		74,462
Alon USA Energy, Inc.			4,902		67,059
Amyris, Inc. *			8,073		25,188
Apco Oil & Gas International, Inc. (a)			3,630		58,443
Approach Resources, Inc. *			8,122		233,426
Atwood Oceanics, Inc. *			23,166		1,072,122
Basic Energy Services, Inc. *			11,624		129,026
Berry Petroleum Co., Class A			22,113		814,643
Bill Barrett Corp. *			17,074		374,433
Bonanza Creek Energy, Inc. *			3,993		80,339
BPZ Resources, Inc. *(a)			42,858		98,145
Bristow Group, Inc.			14,040		658,336
C&J Energy Services, Inc. *(a)			17,920		360,730
Cal Dive International, Inc. *			38,133		56,818
CARBO Ceramics, Inc. (a)			8,073		568,178
Carrizo Oil & Gas, Inc. *			14,069		355,102
Ceres, Inc. *(a)			2,116		14,452
Cheniere Energy, Inc. *			87,176		1,286,718
Clayton Williams Energy, Inc. *			3,630		174,421
Clean Energy Fuels Corp. *(a)			20,436		268,529
Cloud Peak Energy, Inc. *			24,071		423,409
Comstock Resources, Inc. *			18,906		311,760
Contango Oil & Gas Co. *			5,265		292,365
Crosstex Energy, Inc.			18,581		230,404
CVR Energy, Inc. *			6,669		198,870
Dawson Geophysical Co. *			3,267		69,489
Delek US Holdings, Inc.			7,722		202,780
Dresser-Rand Group, Inc. *			30,537		1,545,783
Dril-Quip, Inc. *			14,742		1,032,530
Emerald Oil, Inc. *			21,792		27,022
Endeavour International Corp. *(a)			21,411		180,923
Energy Partners Ltd. *			11,430		196,825
EXCO Resources, Inc. (a)			60,327		413,240
Exterran Holdings, Inc. *			25,524		469,386
Forest Oil Corp. *			46,639		345,595
Forum Energy Technologies, Inc. *			6,090		144,150
FX Energy, Inc. *			20,825		159,311
Gastar Exploration Ltd. *			23,607		37,771
Gevo, Inc. *(a)			14,040		49,702
Global Geophysical Services, Inc. *			8,581		39,387
GMX Resources, Inc. *(a)			23,868		18,856
Goodrich Petroleum Corp. *(a)			10,800		137,160
Green Plains Renewable Energy, Inc. *			10,881		50,053
Gulf Island Fabrication, Inc.			4,923		128,096
Gulfmark Offshore, Inc., Class A *			10,536		369,603
Gulfport Energy Corp. *			18,122		476,609
Hallador Energy Co. (a)			2,216		17,019
Harvest Natural Resources, Inc. *(a)			17,550		149,702
Helix Energy Solutions Group, Inc. *			41,769		735,970
Hercules Offshore, Inc. *	��		62,127		255,342
Hornbeck Offshore Services, Inc. *			12,858		499,405
Houston American Energy Corp. *(a)			7,020		6,318
Hyperdynamics Corp. *(a)			61,776		43,243
ION Geophysical Corp. *			47,214		308,307
Isramco, Inc. *(a)			426		43,708
James River Coal Co. *(a)			14,040		40,014
Key Energy Services, Inc. *			59,837		473,311
KiOR, Inc., Class A *(a)			1,615		12,355
Kodiak Oil & Gas Corp. *			104,949		938,244
Laredo Petroleum Holdings, Inc. *			6,897		150,079
Lufkin Industries, Inc.			13,313		697,867
Magnum Hunter Resources Corp. *(a)			65,963		283,641
Matador Resources Co. *			5,746		58,494
Matrix Service Co. *			10,271		119,760
McMoRan Exploration Co. *(a)			42,750		539,932
Midstates Petroleum Co., Inc. *			11,934		97,262
Newpark Resources, Inc. *			36,318		249,868
Northern Oil and Gas, Inc. *			24,921		407,209
Oasis Petroleum, Inc. *			27,820		815,961
Overseas Shipholding Group, Inc. (a)			11,019		66,224
OYO Geospace Corp. *			2,516		230,440
Parker Drilling Co. *			46,851		193,963
PDC Energy, Inc. *			11,806		328,561
Penn Virginia Corp.			18,355		112,149

See financial notes 91

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
PetroQuest Energy, Inc. *		27,729		176,634
PHI, Inc. *		5,447		150,065
Pioneer Energy Services Corp. *		24,366		187,618
Quicksilver Resources, Inc. *(a)		47,796		162,506
Renewable Energy Group, Inc. *		3,226		17,162
Rentech, Inc. *		88,620		194,964
Resolute Energy Corp. *		20,103		181,731
Rex Energy Corp. *		17,145		212,427
Rosetta Resources, Inc. *		21,060		904,316
RPC, Inc. (a)		28,999		355,238
Sanchez Energy Corp. *		5,265		100,456
SEACOR Holdings, Inc. *		8,424		724,548
SemGroup Corp., Class A *		14,648		520,590
Ship Finance International Ltd. (a)		16,938		273,379
Solazyme, Inc. *(a)		13,738		164,719
Stone Energy Corp. *		19,451		457,682
Swift Energy Co. *		16,859		328,582
Targa Resources Corp.		12,923		585,024
Teekay Corp.		15,968		472,333
Tesco Corp. *		13,074		132,832
Tesoro Corp.		56,511		2,245,747
TETRA Technologies, Inc. *		29,939		191,909
Unit Corp. *		19,052		757,889
USEC, Inc. *(a)		48,458		30,044
VAALCO Energy, Inc. *		22,519		166,866
Venoco, Inc. *		12,636		141,270
W&T Offshore, Inc.		14,403		248,596
Warren Resources, Inc. *		28,191		82,036
Western Refining, Inc.		21,916		612,991
Willbros Group, Inc. *		19,608		96,079
World Fuel Services Corp.		28,782		1,070,978

				34,143,208

Food & Staples Retailing 0.9%
Arden Group, Inc., Class A		520		46,935
Casey’s General Stores, Inc.		15,093		853,509
Chefs’ Warehouse, Inc. *		4,265		65,553
Harris Teeter Supermarkets, Inc.		17,067		666,808
Ingles Markets, Inc., Class A		4,780		76,337
Nash Finch Co.		4,946		97,387
Natural Grocers by Vitamin Cottage, Inc. *		1,404		30,158
PriceSmart, Inc.		7,371		539,115
Rite Aid Corp. *		240,085		285,701
Roundy’s, Inc. (a)		7,546		56,520
Spartan Stores, Inc.		9,075		138,938
SUPERVALU, Inc. (a)		84,990		202,276
Susser Holdings Corp. *		6,255		212,795
The Andersons, Inc.		7,302		293,321
The Fresh Market, Inc. *		12,636		729,350
The Pantry, Inc. *		9,100		127,582
United Natural Foods, Inc. *		19,305		1,109,651
Village Super Market, Inc., Class A		2,457		81,892
Weis Markets, Inc.		4,445		187,357

				5,801,185

Food, Beverage & Tobacco 1.8%
Alico, Inc.		1,522		48,141
Alliance One International, Inc. *		34,568		100,247
Annie’s, Inc. *		1,937		80,482
B&G Foods, Inc.		19,021		556,745
Cal-Maine Foods, Inc.		5,178		208,052
Calavo Growers, Inc.		5,967		157,768
Central European Distribution Corp. *(a)		31,247		85,304
Chiquita Brands International, Inc. *		18,289		109,734
Coca-Cola Bottling Co. Consolidated		1,854		127,259
Darling International, Inc. *		46,166		767,279
Dean Foods Co. *		74,763		1,227,608
Diamond Foods, Inc. (a)		8,654		170,224
Dole Food Co., Inc. *(a)		14,646		188,641
Flowers Foods, Inc.		55,809		1,152,456
Fresh Del Monte Produce, Inc.		15,254		376,774
Harbinger Group, Inc. *		3,805		31,810
J&J Snack Foods Corp.		5,547		316,734
Lancaster Colony Corp.		7,871		570,175
Limoneira Co. (a)		3,661		64,910
National Beverage Corp. *		4,088		60,829
Pilgrim’s Pride Corp. *		22,764		121,104
Post Holdings, Inc. *		10,861		324,201
Sanderson Farms, Inc.		8,105		356,782
Seneca Foods Corp., Class A *		4,081		116,757
Smart Balance, Inc. *		23,166		268,494
Snyders-Lance, Inc.		25,974		607,532
Star Scientific, Inc. *(a)		52,563		197,637
The Boston Beer Co., Inc., Class A *(a)		3,539		364,623
The Hain Celestial Group, Inc. *		15,444		1,065,482
Tootsie Roll Industries, Inc. (a)		11,606		294,444
TreeHouse Foods, Inc. *		14,742		765,847
Universal Corp.		9,308		441,478
Vector Group Ltd. (a)		20,829		354,301

				11,679,854

Health Care Equipment & Services 7.0%
Abaxis, Inc. *		8,714		326,514
ABIOMED, Inc. *		13,227		295,359
Accretive Health, Inc. *(a)		18,324		217,872
Accuray, Inc. *		29,835		182,889
Air Methods Corp. *		4,563		531,772
Alere, Inc. *		31,857		598,274
Align Technology, Inc. *		25,623		869,901
Allscripts Healthcare Solutions, Inc. *		73,992		776,916
Almost Family, Inc. *		3,468		76,573
Alphatec Holdings, Inc. *		22,155		36,777
Amedisys, Inc. *		11,704		164,792
AMERIGROUP Corp. *		19,305		1,755,211
AMN Healthcare Services, Inc. *		16,061		134,912
AmSurg Corp. *		12,557		369,301
Analogic Corp.		4,914		341,572
AngioDynamics, Inc. *		9,930		113,599
ArthroCare Corp. *		10,896		322,304
Assisted Living Concepts, Inc., Class A		8,119		63,247
athenahealth, Inc. *		14,391		1,271,733
Atrion Corp.		702		152,446
Bio-Reference Labs, Inc. *		9,711		253,651
BioScrip, Inc. *		23,043		195,866
Brookdale Senior Living, Inc. *		40,187		873,264
Cantel Medical Corp.		9,828		253,169

92 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Centene Corp. *		21,060		855,247
Chemed Corp.		8,073		533,060
Community Health Systems, Inc. *		37,908		1,025,032
Computer Programs & Systems, Inc.		4,389		221,864
Conceptus, Inc. *		10,059		191,222
CONMED Corp.		11,259		304,218
CorVel Corp. *		2,638		115,544
Cross Country Healthcare, Inc. *		12,711		51,480
CryoLife, Inc. *		11,070		59,778
Cyberonics, Inc. *		11,232		560,814
Dexcom, Inc. *		26,621		354,059
Emeritus Corp. *		11,934		238,919
Endologix, Inc. *		20,697		247,743
ePocrates, Inc. *		6,058		54,037
ExamWorks Group, Inc. *		13,659		171,967
Gentiva Health Services, Inc. *		12,044		132,243
Globus Medical, Inc., Class A *		3,159		50,291
Greatbatch, Inc. *		9,455		218,883
Greenway Medical Technologies *		2,866		43,162
Haemonetics Corp. *		9,916		730,512
Hanger, Inc. *		13,318		381,028
Health Management Associates, Inc., Class A *		101,545		777,835
Health Net, Inc. *		34,398		799,754
HEALTHSOUTH Corp. *		37,822		866,124
HealthStream, Inc. *		8,424		239,410
Healthways, Inc. *		13,338		139,782
Hill-Rom Holdings, Inc.		24,837		688,730
HMS Holdings Corp. *		34,398		1,185,355
ICU Medical, Inc. *		4,741		263,126
Insulet Corp. *		16,199		339,693
Integra LifeSciences Holdings Corp. *		8,092		318,339
Invacare Corp.		12,560		172,574
IPC The Hospitalist Co. *		6,534		288,737
IRIS International, Inc. *		7,101		90,183
Kindred Healthcare, Inc. *		20,977		234,103
Landauer, Inc.		3,708		217,437
LHC Group, Inc. *		6,343		110,368
LifePoint Hospitals, Inc. *		19,114		772,588
Magellan Health Services, Inc. *		10,780		534,796
MAKO Surgical Corp. *(a)		14,887		245,338
Masimo Corp. *		20,742		457,983
MedAssets, Inc. *		21,533		367,568
MedCath Corp. *		8,092		64,493
Medidata Solutions, Inc. *		9,985		350,274
MEDNAX, Inc. *		19,656		1,361,768
Merge Healthcare, Inc. *		23,351		73,789
Meridian Bioscience, Inc.		16,252		287,335
Merit Medical Systems, Inc. *		16,748		238,659
Metropolitan Health Networks, Inc. *		15,919		127,989
Molina Healthcare, Inc. *		12,000		290,880
MWI Veterinary Supply, Inc. *		5,055		509,645
National Healthcare Corp.		4,356		194,670
Natus Medical, Inc. *		11,583		135,637
Navidea Biopharmaceuticals, Inc. *(a)		34,019		123,829
Neogen Corp. *		9,248		361,042
NuVasive, Inc. *		17,550		369,954
NxStage Medical, Inc. *		19,920		253,980
Omnicell, Inc. *		12,950		185,962
OraSure Technologies, Inc. *		21,762		211,309
Orthofix International N.V. *		7,295		308,724
Owens & Minor, Inc.		25,305		708,287
Palomar Medical Technologies, Inc. *		7,117		62,274
PharMerica Corp. *		11,781		148,441
PSS World Medical, Inc. *		20,328		438,882
Quality Systems, Inc.		14,842		262,258
Quidel Corp. *		11,633		188,920
RTI Biologics, Inc. *		21,811		83,318
Select Medical Holdings Corp. *		19,305		199,807
Sirona Dental Systems, Inc. *		22,815		1,212,389
Skilled Healthcare Group, Inc., Class A *		9,583		54,815
Staar Surgical Co. *		10,758		70,465
STERIS Corp.		21,025		719,896
Sun Healthcare Group, Inc. *		10,164		85,886
Sunrise Senior Living, Inc. *(a)		21,819		313,757
SurModics, Inc. *		6,357		118,494
Symmetry Medical, Inc. *		14,261		132,770
Team Health Holdings, Inc. *		15,444		440,926
Teleflex, Inc.		16,497		1,089,297
Tenet Healthcare Corp. *		171,639		890,806
The Cooper Cos., Inc.		18,954		1,589,293
The Ensign Group, Inc.		6,897		203,048
Thoratec Corp. *		24,219		820,782
Triple-S Management Corp., Class B *		8,203		167,669
Unilife Corp. *(a)		27,534		82,327
Universal American Corp. *		18,331		165,896
Vanguard Health Systems, Inc. *		15,795		154,001
VCA Antech, Inc. *		34,124		659,958
Vocera Communications, Inc. *		2,270		63,923
Volcano Corp. *		20,833		589,157
WellCare Health Plans, Inc. *		17,550		994,910
West Pharmaceutical Services, Inc.		13,459		637,284
Wright Medical Group, Inc. *		15,639		323,727
Zeltiq Aesthetics, Inc. *(a)		2,541		13,467

				44,965,909

Household & Personal Products 0.5%
Central Garden & Pet Co., Class A *		19,457		229,593
Elizabeth Arden, Inc. *		10,811		503,144
Inter Parfums, Inc.		6,897		114,490
Medifast, Inc. *		5,942		165,722
Nature’s Sunshine Products, Inc.		4,035		63,632
Nu Skin Enterprises, Inc., Class A		23,868		990,283
Prestige Brands Holdings, Inc., Class A *		21,411		343,861
Revlon, Inc., Class A *		4,814		63,882
Spectrum Brands Holdings, Inc.		9,885		364,065
USANA Health Sciences, Inc. *(a)		3,041		137,909
WD-40 Co.		6,019		293,787

				3,270,368

Insurance 3.0%
American Equity Investment Life Holding Co.		23,442		270,990
American National Insurance Co.		5,688		402,085
AMERISAFE, Inc. *		7,495		188,424
AmTrust Financial Services, Inc.		10,585		275,959

See financial notes 93

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Argo Group International Holdings Ltd.		12,218		361,164
Arthur J. Gallagher & Co.		47,736		1,705,130
Aspen Insurance Holdings Ltd.		29,133		847,188
Baldwin & Lyons, Inc., Class B		3,654		82,288
Citizens, Inc. *		15,472		151,161
CNO Financial Group, Inc.		86,906		773,463
Crawford & Co., Class B		10,362		46,318
Donegal Group, Inc., Class A		3,709		53,150
eHealth, Inc. *		9,126		150,944
EMC Insurance Group, Inc.		2,054		40,341
Employers Holdings, Inc.		12,503		227,930
Endurance Specialty Holdings Ltd.		17,901		676,837
Enstar Group Ltd. *		3,995		369,378
FBL Financial Group, Inc., Class A		4,594		152,153
First American Financial Corp.		43,524		838,707
Flagstone Reinsurance Holdings S.A.		21,792		186,104
Global Indemnity plc *		5,729		115,554
Greenlight Capital Re Ltd., Class A *		12,002		291,409
Hanover Insurance Group, Inc.		18,036		643,705
Hilltop Holdings, Inc. *		16,466		184,419
Horace Mann Educators Corp.		16,050		281,998
Infinity Property & Casualty Corp.		4,696		263,446
Kansas City Life Insurance Co.		1,604		56,717
Kemper Corp.		17,562		537,397
Maiden Holdings Ltd.		25,059		230,042
MBIA, Inc. *(a)		63,180		687,398
Meadowbrook Insurance Group, Inc.		20,262		153,789
Mercury General Corp.		10,533		403,309
Montpelier Re Holdings Ltd.		22,903		493,789
National Financial Partners Corp. *		16,497		243,166
National Interstate Corp.		2,813		69,903
National Western Life Insurance Co., Class A		843		116,680
OneBeacon Insurance Group Ltd., Class A		9,077		117,184
Platinum Underwriters Holdings Ltd.		13,764		546,981
Presidential Life Corp.		10,881		151,681
Primerica, Inc.		15,657		456,558
ProAssurance Corp.		11,934		1,064,871
Protective Life Corp.		33,345		941,996
RLI Corp.		7,020		444,787
Safety Insurance Group, Inc.		5,808		263,044
Seabright Holdings, Inc.		8,194		89,970
Selective Insurance Group, Inc.		21,411		383,899
StanCorp Financial Group, Inc.		17,681		552,001
State Auto Financial Corp.		5,556		78,062
Stewart Information Services Corp.		7,169		141,731
Symetra Financial Corp.		31,240		381,753
The Navigators Group, Inc. *		4,595		223,133
The Phoenix Cos., Inc. *		2,200		67,843
Tower Group, Inc.		14,288		266,328
United Fire Group, Inc.		8,806		194,965
Universal Insurance Holdings, Inc.		10,056		35,196

				18,974,418

Materials 5.3%
A. Schulman, Inc.		11,666		283,367
A.M. Castle & Co. *		7,441		96,956
AK Steel Holding Corp. (a)		42,966		224,283
AMCOL International Corp.		10,517		316,246
American Vanguard Corp.		9,706		285,551
Balchem Corp.		11,451		417,732
Boise, Inc.		39,567		297,940
Buckeye Technologies, Inc.		15,616		473,477
Cabot Corp.		23,336		812,793
Calgon Carbon Corp. *		22,047		300,942
Carpenter Technology Corp.		18,954		895,766
Century Aluminum Co. *		24,921		155,258
Chemtura Corp. *		39,099		646,306
Clearwater Paper Corp. *		9,131		344,421
Coeur d’Alene Mines Corp. *		35,588		818,168
Commercial Metals Co.		45,861		584,269
Compass Minerals International, Inc.		13,338		957,935
Cytec Industries, Inc.		18,603		1,273,747
Deltic Timber Corp.		5,265		322,955
Domtar Corp.		14,742		1,067,911
Eagle Materials, Inc.		17,822		760,108
Ferro Corp. *		34,503		113,170
Flotek Industries, Inc. *		19,756		233,713
FutureFuel Corp.		5,531		57,080
General Moly, Inc. *(a)		25,920		70,243
Georgia Gulf Corp.		14,391		570,459
Globe Specialty Metals, Inc.		21,132		308,316
Graphic Packaging Holding Co. *		51,207		286,247
Greif, Inc., Class A		16,497		734,117
H.B. Fuller Co.		19,612		596,401
Hawkins, Inc.		3,398		131,231
Haynes International, Inc.		4,914		239,558
Headwaters, Inc. *		24,333		161,814
Hecla Mining Co.		110,831		599,596
Horsehead Holding Corp. *		17,199		152,039
Innophos Holdings, Inc.		9,126		431,569
Intrepid Potash, Inc. *		20,718		464,705
Kaiser Aluminum Corp.		6,669		372,464
KapStone Paper and Packaging Corp. *		16,935		339,208
Koppers Holdings, Inc.		8,177		265,017
Kraton Performance Polymers, Inc. *		12,660		271,557
Kronos Worldwide, Inc. (a)		7,995		135,675
Louisiana-Pacific Corp. *		54,405		730,115
LSB Industries, Inc. *		7,286		274,682
Materion Corp.		8,096		171,959
McEwen Mining, Inc. *		81,365		322,205
Metals USA Holdings Corp. *		5,229		72,108
Minerals Technologies, Inc.		7,371		499,828
Myers Industries, Inc.		13,243		195,996
Neenah Paper, Inc.		7,020		195,928
NewMarket Corp.		3,751		923,196
NL Industries, Inc.		3,042		35,470
Noranda Aluminium Holding Corp.		12,636		75,311
Olin Corp.		28,318		606,855
Olympic Steel, Inc.		4,032		63,544
OM Group, Inc. *		12,901		237,894
Omnova Solutions, Inc. *		18,156		141,435
P.H. Glatfelter Co.		18,603		312,530
Packaging Corp. of America		40,365		1,292,487
PolyOne Corp.		36,028		568,522
Quaker Chemical Corp.		5,083		239,155
Resolute Forest Products *(a)		29,170		366,667
RPM International, Inc.		53,352		1,462,378
RTI International Metals, Inc. *		11,814		256,246

94 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Schnitzer Steel Industries, Inc., Class A		9,447		260,926
Schweitzer-Mauduit International, Inc.		12,636		407,890
Sensient Technologies Corp.		19,841		711,300
Silgan Holdings, Inc.		19,305		809,459
Spartech Corp. *		11,716		59,283
Stepan Co.		3,159		301,748
Stillwater Mining Co. *		45,762		481,874
STR Holdings, Inc. *(a)		16,497		52,625
SunCoke Energy, Inc. *		27,963		442,375
Texas Industries, Inc. (a)		9,828		382,899
TPC Group, Inc. *		5,811		238,425
United States Lime & Minerals, Inc. *		761		33,484
US Antimony Corp. *(a)		16,670		43,342
US Silica Holdings, Inc. *(a)		5,026		59,809
W.R. Grace & Co. *		24,921		1,439,437
Wausau Paper Corp.		19,440		174,571
Westlake Chemical Corp.		7,774		534,696
Worthington Industries, Inc.		21,295		445,066
Zep, Inc.		8,808		127,452
Zoltek Cos., Inc. *		11,065		94,384

				34,015,866

Media 1.5%
Arbitron, Inc.		11,232		395,030
Ascent Capital Group, Inc., Class A *		5,714		294,557
Belo Corp., Class A		37,044		270,421
Cinemark Holdings, Inc.		39,222		918,579
Crown Media Holdings, Inc., Class A *(a)		13,106		22,542
Cumulus Media, Inc. *		21,316		59,045
Digital Domain Media Group, Inc. *(a)		2,904		6,011
Digital Generation, Inc. *		9,522		106,170
Dolan Co. *		10,898		38,688
DreamWorks Animation SKG, Inc., Class A *(a)		27,090		459,717
Entercom Communications Corp., Class A *		10,533		66,674
Entravision Communications Corp., Class A		20,102		22,916
Fisher Communications, Inc. *		2,406		85,798
Harte-Hanks, Inc.		17,676		123,025
Journal Communications, Inc., Class A *		16,555		88,735
Lamar Advertising Co., Class A *		23,168		767,324
LIN TV Corp., Class A *		12,891		52,209
Live Nation Entertainment, Inc. *		63,859		544,079
Martha Stewart Living Omnimedia, Class A		11,259		33,327
Meredith Corp. (a)		14,454		470,622
Morningstar, Inc.		10,262		609,666
National CineMedia, Inc.		21,992		318,884
Pandora Media, Inc. *(a)		25,726		308,455
ReachLocal, Inc. *		3,702		46,534
Regal Entertainment Group, Class A (a)		30,768		427,675
Scholastic Corp.		9,801		299,421
Sinclair Broadcast Group, Inc.		19,318		223,316
The E.W. Scripps Co., Class A *		12,636		131,035
The Madison Square Garden Co., Class A *		24,219		1,022,284
The McClatchy Co., Class A *(a)		20,334		31,721
The New York Times Co., Class A *		50,895		467,725
Valassis Communications, Inc. *(a)		18,252		457,578
World Wrestling Entertainment, Inc., Class A (a)		10,897		96,765

				9,266,528

Pharmaceuticals, Biotechnology & Life Sciences 5.9%
Achillion Pharmaceuticals, Inc. *		18,410		129,422
Acorda Therapeutics, Inc. *		15,662		357,877
Aegerion Pharmaceuticals, Inc. *		8,424		117,262
Affymax, Inc. *		14,113		249,659
Affymetrix, Inc. *		24,932		94,991
Akorn, Inc. *		25,894		358,373
Alkermes plc *		38,674		709,668
Allos Therapeutics, Inc. *(a)		21,429		38,786
Alnylam Pharmaceuticals, Inc. *		17,793		325,434
AMAG Pharmaceuticals, Inc. *		8,327		123,156
Arena Pharmaceuticals, Inc. *(a)		77,494		700,546
ARIAD Pharmaceuticals, Inc. *		67,392		1,385,580
Arqule, Inc. *		24,137		126,478
Array BioPharma, Inc. *		31,864		176,527
Auxilium Pharmaceuticals, Inc. *		19,066		444,238
AVANIR Pharmaceuticals, Inc. *(a)		53,737		178,407
AVEO Pharmaceuticals, Inc. *(a)		17,125		164,229
Bio-Rad Laboratories, Inc., Class A *		8,073		810,368
BioCryst Pharmaceuticals, Inc. *		15,466		67,586
BioMarin Pharmaceutical, Inc. *		45,981		1,716,931
Bruker Corp. *		36,864		446,423
Cadence Pharmaceuticals, Inc. *(a)		30,537		120,316
Cell Therapeutics, Inc. *(a)		76,284		33,184
Cepheid, Inc. *		26,046		982,976
Charles River Laboratories International, Inc. *		19,621		712,635
ChemoCentryx, Inc. *		1,786		18,753
Clovis Oncology, Inc. *(a)		6,920		121,031
Codexis, Inc. *		6,555		14,880
Cubist Pharmaceuticals, Inc. *		25,974		1,199,999
Curis, Inc. *(a)		30,384		133,690
Cytori Therapeutics, Inc. *(a)		20,697		65,196
Dendreon Corp. *(a)		61,042		274,079
Depomed, Inc. *		20,130		106,488
Dyax Corp. *		39,222		88,642
Dynavax Technologies Corp. *		57,285		223,984
Emergent Biosolutions, Inc. *		9,258		136,370
Endocyte, Inc. *(a)		12,348		118,417
Enzo Biochem, Inc. *		12,938		24,323
Enzon Pharmaceuticals, Inc. *		14,611		98,770
Exact Sciences Corp. *		22,648		224,895
Exelixis, Inc. *(a)		62,127		275,223
Fluidigm Corp. *		6,415		100,331
Genomic Health, Inc. *		7,988		275,266
Geron Corp. *		52,665		145,355
Halozyme Therapeutics, Inc. *		36,842		213,684
Hi-Tech Pharmacal Co., Inc. *		3,993		142,510
Idenix Pharmaceuticals, Inc. *		40,210		227,186
ImmunoGen, Inc. *		30,409		437,586
Immunomedics, Inc. *		26,564		89,521
Impax Laboratories, Inc. *		27,729		656,345

See financial notes 95

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Incyte Corp. *(a)		39,087		782,131
InterMune, Inc. *		26,148		192,711
Ironwood Pharmaceuticals, Inc. *		29,672		371,790
Isis Pharmaceuticals, Inc. *		37,770		514,050
Jazz Pharmaceuticals plc *		13,385		609,151
Lexicon Pharmaceuticals, Inc. *		97,206		217,741
Luminex Corp. *		16,561		320,290
MannKind Corp. *(a)		32,775		88,492
MAP Pharmaceuticals, Inc. *		10,042		134,964
Medicis Pharmaceutical Corp., Class A		23,608		745,068
Medivation, Inc. *		14,742		1,545,846
Merrimack Pharmaceuticals, Inc. *(a)		8,775		69,849
Metabolix, Inc. *(a)		12,402		20,711
Momenta Pharmaceuticals, Inc. *		17,905		252,640
Myriad Genetics, Inc. *		35,100		877,149
Nektar Therapeutics *(a)		45,546		390,785
Neurocrine Biosciences, Inc. *		25,785		190,293
Novavax, Inc. *		39,222		80,013
NPS Pharmaceuticals, Inc. *		33,976		258,897
Obagi Medical Products, Inc. *		7,512		100,360
Oncothyreon, Inc. *(a)		23,868		126,262
Onyx Pharmaceuticals, Inc. *		25,623		1,842,806
Opko Health, Inc. *(a)		61,740		274,126
Optimer Pharmaceuticals, Inc. *(a)		16,497		247,950
Osiris Therapeutics, Inc. *(a)		9,126		82,590
Pacific Biosciences of California, Inc. *(a)		17,199		33,882
Pain Therapeutics, Inc. *		17,550		69,849
Par Pharmaceutical Cos., Inc. *		15,093		751,631
PAREXEL International Corp. *		23,772		684,396
PDL BioPharma, Inc.		55,932		411,660
Pharmacyclics, Inc. *		21,411		1,432,824
POZEN, Inc. *		12,636		82,260
Progenics Pharmaceuticals, Inc. *		15,093		61,579
Questcor Pharmaceuticals, Inc. *(a)		23,868		1,036,826
Rigel Pharmaceuticals, Inc. *		27,873		259,776
Sagent Pharmaceuticals, Inc. *		5,808		83,984
Salix Pharmaceuticals Ltd. *		21,762		956,658
Sangamo BioSciences, Inc. *(a)		20,709		111,207
Santarus, Inc. *		21,452		132,573
Savient Pharmaceuticals, Inc. *(a)		25,422		33,557
Seattle Genetics, Inc. *(a)		41,418		1,099,234
Sequenom, Inc. *(a)		45,036		165,282
SIGA Technologies, Inc. *(a)		14,526		42,997
Spectrum Pharmaceuticals, Inc. *(a)		22,815		272,867
Sucampo Pharmaceuticals, Inc., Class A *		5,082		24,241
Synageva BioPharma Corp. *		3,985		199,091
Synergy Pharmaceuticals, Inc. *(a)		17,550		86,872
Targacept, Inc. *		11,118		50,031
TESARO, Inc. *		1,755		21,727
The Medicines Co. *		21,762		559,066
Theravance, Inc. *		28,137		750,414
Vanda Pharmaceuticals, Inc. *		11,662		51,196
ViroPharma, Inc. *		28,000		744,800
VIVUS, Inc. *		40,365		865,829
XenoPort, Inc. *		20,007		186,465
ZIOPHARM Oncology, Inc. *(a)		27,600		137,172

				37,720,187

Real Estate 10.4%
Acadia Realty Trust		18,603		463,215
Alexander & Baldwin, Inc. *		16,679		494,032
Alexander’s, Inc.		1,089		489,658
American Assets Trust, Inc.		13,564		369,755
American Campus Communities, Inc.		36,153		1,685,453
American Capital Mortgage Investment Corp.		12,893		318,844
American Realty Capital Trust, Inc.		65,988		778,658
AmREIT, Inc., Class B		702		10,179
Anworth Mortgage Asset Corp.		57,915		397,297
Apartment Investment & Management Co., Class A		48,087		1,273,344
ARMOUR Residential REIT, Inc.		109,161		814,341
Ashford Hospitality Trust		26,898		222,715
Associated Estates Realty Corp.		20,358		309,645
AV Homes, Inc. *		3,906		57,574
BioMed Realty Trust, Inc.		62,829		1,164,221
Brandywine Realty Trust		56,834		693,375
Campus Crest Communities, Inc.		15,093		163,004
CapLease, Inc.		26,325		128,993
Capstead Mortgage Corp.		37,120		532,301
CBL & Associates Properties, Inc.		60,723		1,297,651
Cedar Realty Trust, Inc.		21,429		117,645
Chesapeake Lodging Trust		12,718		236,936
Colonial Properties Trust		34,616		758,783
Colony Financial, Inc.		13,074		251,152
CommonWealth REIT		33,203		497,049
Coresite Realty Corp.		9,477		257,680
Corporate Office Properties Trust		28,546		638,289
Cousins Properties, Inc.		33,777		269,878
CreXus Investment Corp.		26,874		276,265
CubeSmart		44,928		579,571
DCT Industrial Trust, Inc.		97,521		616,333
DiamondRock Hospitality Co.		74,412		715,843
Douglas Emmett, Inc.		56,862		1,364,119
Duke Realty Corp.		108,108		1,567,566
DuPont Fabros Technology, Inc.		25,974		715,843
EastGroup Properties, Inc.		11,211		600,910
Education Realty Trust, Inc.		43,875		507,195
Entertainment Properties Trust		18,519		844,281
Equity Lifestyle Properties, Inc.		16,497		1,134,334
Equity One, Inc.		24,454		518,425
Excel Trust, Inc.		13,363		156,882
Extra Space Storage, Inc.		42,120		1,436,713
FelCor Lodging Trust, Inc. *		49,755		230,863
First Industrial Realty Trust, Inc. *		31,962		412,310
First Potomac Realty Trust		19,820		253,894
Forest City Enterprises, Inc., Class A *		52,319		788,971
Forestar Group, Inc. *		13,689		196,985
Franklin Street Properties Corp.		29,218		324,904
Getty Realty Corp. (a)		11,462		205,284
Glimcher Realty Trust		55,279		579,324
Government Properties Income Trust		14,650		330,943
Hatteras Financial Corp.		40,014		1,160,006
Healthcare Realty Trust, Inc.		30,888		749,343
Healthcare Trust of America, Inc.		22,850		214,790
Hersha Hospitality Trust		69,770		347,455
Highwoods Properties, Inc.		30,186		984,365

96 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Home Properties, Inc.		19,656		1,255,036
Hospitality Properties Trust		50,544		1,216,594
Hudson Pacific Properties, Inc.		9,250		164,095
Inland Real Estate Corp.		31,076		254,823
Invesco Mortgage Capital		45,803		938,503
Investors Real Estate Trust		34,175		285,361
iStar Financial, Inc. *		30,522		219,148
Kennedy-Wilson Holdings, Inc.		18,061		249,964
Kilroy Realty Corp.		27,729		1,309,086
Kite Realty Group Trust		23,970		123,206
LaSalle Hotel Properties		33,776		920,396
Lexington Realty Trust		53,909		505,666
LTC Properties, Inc.		12,030		405,892
Mack-Cali Realty Corp.		35,451		946,542
Medical Properties Trust, Inc.		53,733		553,987
MFA Financial, Inc.		146,016		1,195,871
Mid-America Apartment Communities, Inc.		16,497		1,121,796
Monmouth Real Estate Investment Corp.		14,646		163,596
National Health Investors, Inc.		9,300		485,832
National Retail Properties, Inc.		38,031		1,181,243
NorthStar Realty Finance Corp.		53,001		311,116
OMEGA Healthcare Investors, Inc.		43,524		1,045,446
Parkway Properties, Inc.		8,775		101,878
Pebblebrook Hotel Trust		20,822		492,024
Pennsylvania REIT		22,155		348,277
Pennymac Mortgage Investment Trust		16,306		351,231
Post Properties, Inc.		21,142		1,079,299
Potlatch Corp.		15,860		571,912
PS Business Parks, Inc.		7,437		506,980
Ramco-Gershenson Properties Trust		17,504		226,852
Redwood Trust, Inc.		28,215		404,321
Resource Capital Corp.		34,398		205,700
Retail Opportunity Investments Corp.		22,113		277,960
Retail Properties of America, Inc., Class A		12,636		141,776
RLJ Lodging Trust		25,324		451,780
Rouse Properties, Inc. (a)		9,015		125,309
Sabra Healthcare REIT, Inc.		14,632		280,495
Saul Centers, Inc.		3,109		134,029
Select Income REIT		3,215		79,764
Senior Housing Properties Trust		65,988		1,459,655
Sovran Self Storage, Inc.		11,523		655,083
Starwood Property Trust, Inc.		47,034		1,107,651
Strategic Hotels & Resorts, Inc. *		64,751		394,981
Summit Hotel Properties, Inc.		11,352		96,719
Sun Communities, Inc.		9,828		450,221
Sunstone Hotel Investors, Inc. *		46,851		488,656
Tanger Factory Outlet Centers		37,206		1,248,261
Taubman Centers, Inc.		23,166		1,853,743
Tejon Ranch Co. *		5,827		162,923
The Howard Hughes Corp. *		10,029		659,808
The St. Joe Co. *(a)		36,405		697,884
Two Harbors Investment Corp.		105,300		1,220,427
Universal Health Realty Income Trust		4,690		202,467
Urstadt Biddle Properties, Class A		8,351		162,844
Walter Investment Management Corp.		12,636		353,682
Washington REIT		26,325		707,089
Weingarten Realty Investors		49,140		1,372,480
Winthrop Realty Trust		10,166		115,486

				66,548,230

Retailing 4.4%
1-800-FLOWERS.COM, Inc., Class A *		9,525		34,242
Aaron’s, Inc.		29,133		870,203
Aeropostale, Inc. *		32,044		446,373
America’s Car-Mart, Inc. *		3,861		176,100
Ann, Inc. *		19,257		685,164
Asbury Automotive Group, Inc. *		13,689		379,048
Ascena Retail Group, Inc. *		50,658		1,003,028
Barnes & Noble, Inc. *(a)		16,416		196,500
bebe stores, Inc.		14,199		77,101
Big 5 Sporting Goods Corp.		7,986		68,041
Big Lots, Inc. *		26,676		812,017
Blue Nile, Inc. *(a)		5,380		201,320
Body Central Corp. *		5,154		45,252
Brown Shoe Co., Inc.		16,497		247,620
Cabela’s, Inc. *		20,007		960,536
CafePress, Inc. *		1,860		17,279
Chico’s FAS, Inc.		68,796		1,302,996
Christopher & Banks Corp.		12,636		31,085
Citi Trends, Inc. *		5,910		68,645
Coldwater Creek, Inc. *		32,688		18,632
Collective Brands, Inc. *		24,342		526,761
Conn’s, Inc. *		6,148		142,388
Core-Mark Holding Co., Inc.		4,535		206,524
Dillard’s, Inc., Class A		13,338		1,001,417
DSW, Inc., Class A		9,833		634,425
Express, Inc. *		29,052		453,502
Five Below, Inc. *(a)		3,861		124,093
Francesca’s Holdings Corp. *		6,171		218,021
Fred’s, Inc., Class A		13,733		183,061
Genesco, Inc. *		9,612		679,088
GNC Holdings, Inc., Class A		30,888		1,199,999
Gordmans Stores, Inc. *		3,390		59,596
Group 1 Automotive, Inc.		9,126		502,021
Haverty Furniture Cos., Inc.		8,084		105,739
hhgregg, Inc. *(a)		8,627		61,165
Hibbett Sports, Inc. *		10,461		607,156
HomeAway, Inc. *(a)		11,723		277,366
Hot Topic, Inc.		16,079		151,947
HSN, Inc.		16,848		758,665
Jos. A. Bank Clothiers, Inc. *		10,896		524,860
Kayak Software Corp. *(a)		1,404		38,329
Kirkland’s, Inc. *		6,483		62,885
Lithia Motors, Inc., Class A		8,908		260,203
Lumber Liquidators Holdings, Inc. *		9,363		436,878
MarineMax, Inc. *		9,284		66,938
Mattress Firm Holding Corp. *(a)		4,958		159,598
Monro Muffler Brake, Inc.		12,127		410,499
New York & Co., Inc. *		10,359		38,639
NutriSystem, Inc.		11,265		115,804
Office Depot, Inc. *		110,775		169,486
OfficeMax, Inc.		36,504		212,088
Orbitz Worldwide, Inc. *		9,075		25,773
Overstock.com, Inc. *(a)		4,748		41,545
Pacific Sunwear Of California, Inc. *(a)		26,511		64,687

See financial notes 97

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Penske Automotive Group, Inc.		17,495		466,067
PetMed Express, Inc. (a)		7,500		77,100
Pier 1 Imports, Inc.		43,464		803,215
RadioShack Corp. (a)		39,416		95,781
Rent-A-Center, Inc.		24,219		854,446
Rue21, Inc. *		6,318		178,863
Saks, Inc. *(a)		44,458		522,381
Select Comfort Corp. *		22,176		633,568
Shoe Carnival, Inc.		5,821		128,062
Shutterfly, Inc. *		13,338		396,805
Sonic Automotive, Inc., Class A		13,872		247,893
Stage Stores, Inc.		12,078		258,711
Stamps.com, Inc. *		5,835		129,187
Stein Mart, Inc. *		10,338		93,456
Systemax, Inc. *		4,357		50,759
Teavana Holdings, Inc. *		2,790		30,690
The Buckle, Inc. (a)		10,896		496,204
The Cato Corp., Class A		10,975		322,336
The Children’s Place Retail Stores, Inc. *		10,179		579,592
The Finish Line, Inc., Class A		20,572		472,333
The Men’s Wearhouse, Inc.		21,060		665,496
The Pep Boys-Manny, Moe & Jack		20,762		186,650
The Wet Seal, Inc., Class A *		35,918		104,162
Tilly’s, Inc. *		2,972		54,506
Vitamin Shoppe, Inc. *		10,934		586,172
VOXX International Corp. *		7,698		57,735
Williams-Sonoma, Inc.		36,153		1,482,996
Zumiez, Inc. *		8,468		247,181

				28,384,675

Semiconductors & Semiconductor Equipment 3.1%
Advanced Energy Industries, Inc. *		14,309		182,726
Amkor Technology, Inc. *(a)		32,039		150,263
ANADIGICS, Inc. *		26,874		31,443
Applied Micro Circuits Corp. *		24,282		124,081
ATMI, Inc. *		12,453		235,486
Brooks Automation, Inc.		26,220		210,022
Cabot Microelectronics Corp.		10,179		338,655
Cavium, Inc. *		19,222		620,871
CEVA, Inc. *		9,508		153,269
Cirrus Logic, Inc. *		25,879		1,078,378
Cohu, Inc.		8,933		78,610
Cymer, Inc. *		11,583		656,756
Cypress Semiconductor Corp. *		61,740		716,801
Diodes, Inc. *		13,822		255,569
DSP Group, Inc. *		8,111		46,476
Entegris, Inc. *		53,973		474,423
Entropic Communications, Inc. *		34,184		185,619
Exar Corp. *		14,889		113,305
Fairchild Semiconductor International, Inc. *		50,652		735,467
FEI Co.		15,444		829,497
FormFactor, Inc. *		23,166		117,915
GT Advanced Technologies, Inc. *		53,352		309,442
Hittite Microwave Corp. *		11,259		589,634
Inphi Corp. *		9,126		108,417
Integrated Device Technology, Inc. *		56,388		299,984
Intermolecular, Inc. *		5,743		42,498
International Rectifier Corp. *		27,541		479,489
Intersil Corp., Class A		50,270		443,884
IXYS Corp. *		10,005		97,349
Kopin Corp. *		26,874		93,790
Kulicke & Soffa Industries, Inc. *		29,184		330,655
Lattice Semiconductor Corp. *		47,940		186,487
LTX-Credence Corp. *		19,608		111,570
M/A-COM Technology Solutions Holdings, Inc. *		2,457		28,305
MaxLinear, Inc., Class A *		6,743		38,503
MEMC Electronic Materials, Inc. *		91,018		243,928
Micrel, Inc.		22,464		223,292
Microsemi Corp. *		35,451		705,829
MIPS Technologies, Inc. *		18,972		125,974
MKS Instruments, Inc.		20,824		564,539
Monolithic Power Systems, Inc. *		15,093		325,405
Nanometrics, Inc. *		8,354		127,231
OmniVision Technologies, Inc. *		23,494		381,778
Peregrine Semiconductor Corp. *		2,457		39,066
Pericom Semiconductor Corp. *		9,443		75,827
Photronics, Inc. *		23,249		136,472
PMC-Sierra, Inc. *		92,976		543,910
Power Integrations, Inc.		11,132		385,612
Rambus, Inc. *		39,723		170,014
RF Micro Devices, Inc. *		109,707		411,401
Rubicon Technology, Inc. *(a)		7,276		61,264
Rudolph Technologies, Inc. *		12,711		118,721
Semtech Corp. *		25,945		636,171
Sigma Designs, Inc. *		12,484		85,765
Silicon Image, Inc. *		31,428		148,654
Silicon Laboratories, Inc. *		17,022		650,921
Spansion, Inc., Class A *		19,044		217,673
SunPower Corp. *		18,156		81,339
Supertex, Inc. *		4,146		71,684
Teradyne, Inc. *		75,114		1,173,281
Tessera Technologies, Inc.		20,592		314,440
TriQuint Semiconductor, Inc. *		65,432		363,802
Ultratech, Inc. *		10,198		336,330
Veeco Instruments, Inc. *		15,365		527,019
Volterra Semiconductor Corp. *		11,232		267,659

				20,010,640

Software & Services 8.6%
Accelrys, Inc. *		21,871		168,188
ACI Worldwide, Inc. *		15,795		685,187
Actuate Corp. *		18,882		131,985
Acxiom Corp. *		31,070		530,054
Advent Software, Inc. *		12,704		301,847
Ancestry.com, Inc. *(a)		11,039		343,092
Angie’s List, Inc. *		3,267		31,233
AOL, Inc. *		38,259		1,288,181
Ariba, Inc. *		40,365		1,803,912
Aspen Technology, Inc. *		37,359		910,812
Bankrate, Inc. *		17,430		299,447
Bazaarvoice, Inc. *(a)		8,552		126,912
Blackbaud, Inc.		17,708		431,721
Blucora, Inc. *		17,550		270,446
Booz Allen Hamilton Holding Corp.		9,633		176,862
Bottomline Technologies, Inc. *		16,146		362,316
Brightcove, Inc. *		1,985		25,646
BroadSoft, Inc. *		9,828		355,872
CACI International, Inc., Class A *		10,533		562,357
Cadence Design Systems, Inc. *		111,969		1,477,991

98 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Carbonite, Inc. *(a)		5,764		43,576
Cass Information Systems, Inc.		3,763		150,595
CIBER, Inc. *		25,059		86,955
CommVault Systems, Inc. *		16,191		816,350
Compuware Corp. *		86,841		868,410
comScore, Inc. *		14,040		198,245
Concur Technologies, Inc. *		18,954		1,372,270
Constant Contact, Inc. *		13,689		267,620
Convergys Corp.		40,419		626,899
CoreLogic, Inc. *		43,875		1,079,325
Cornerstone OnDemand, Inc. *		10,896		292,122
CSG Systems International, Inc. *		13,338		282,899
DealerTrack Holdings, Inc. *		16,855		466,715
Deltek, Inc. *		6,973		90,231
Demand Media, Inc. *(a)		13,655		138,598
Demandware, Inc. *(a)		2,188		56,888
Dice Holdings, Inc. *		19,656		156,855
Digital River, Inc. *		14,820		246,901
DST Systems, Inc.		14,040		714,355
E2open, Inc. *		702		8,958
EarthLink, Inc.		42,825		286,071
Ebix, Inc. (a)		13,093		314,101
Echo Global Logistics, Inc. *		5,936		105,127
Eloqua, Inc. *		1,755		24,552
Envestnet, Inc. *		8,851		102,141
Envivio, Inc. *		2,995		7,877
EPAM Systems, Inc. *		3,226		56,455
EPIQ Systems, Inc.		12,285		143,980
Euronet Worldwide, Inc. *		21,060		374,026
ExactTarget, Inc. *(a)		3,861		81,737
Exlservice Holdings, Inc. *		10,881		280,403
Fair Isaac Corp.		13,579		579,959
FalconStor Software, Inc. *		13,461		24,634
FleetCor Technologies, Inc. *		17,655		762,343
Forrester Research, Inc.		5,661		165,754
Fortinet, Inc. *		50,544		1,339,921
Gartner, Inc. *		35,100		1,733,589
Global Cash Access Holdings, Inc. *		19,122		146,666
Guidewire Software, Inc. *		7,236		206,588
Heartland Payment Systems, Inc.		14,370		436,561
iGate Corp. *		12,470		200,892
Imperva, Inc. *		2,808		85,054
Infoblox, Inc. *		2,831		61,687
Interactive Intelligence Group, Inc. *		6,669		197,136
Internap Network Services Corp. *		21,066		151,675
IntraLinks Holdings, Inc. *		14,341		77,728
j2 Global, Inc.		18,224		537,061
Jack Henry & Associates, Inc.		35,100		1,297,296
JDA Software Group, Inc. *		16,791		517,163
Jive Software, Inc. *(a)		6,395		96,501
Kenexa Corp. *		9,454		433,371
Keynote Systems, Inc.		6,019		79,029
KIT Digital, Inc. *(a)		17,067		55,468
Lender Processing Services, Inc.		33,496		940,233
Limelight Networks, Inc. *		24,570		56,757
Lionbridge Technologies, Inc. *		22,971		80,628
Liquidity Services, Inc. *		9,126		478,111
LivePerson, Inc. *		21,060		347,490
LogMeIn, Inc. *		8,788		193,160
Manhattan Associates, Inc. *		8,212		415,363
ManTech International Corp., Class A		8,801		197,142
Marchex, Inc., Class B		9,233		31,300
MAXIMUS, Inc.		13,393		728,445
Mentor Graphics Corp. *		37,475		619,462
MICROS Systems, Inc. *		32,643		1,653,694
MicroStrategy, Inc., Class A *		3,510		440,540
Millennial Media, Inc. *(a)		3,815		43,987
ModusLink Global Solutions, Inc. *		17,247		52,603
MoneyGram International, Inc. *		8,476		135,192
Monotype Imaging Holdings, Inc. *		14,076		212,407
Move, Inc. *		14,243		110,811
NCI, Inc., Class A *		2,808		20,526
Netscout Systems, Inc. *		13,672		324,710
NetSuite, Inc. *		15,031		854,963
NeuStar, Inc., Class A *		26,676		1,002,217
NIC, Inc.		25,393		366,421
OpenTable, Inc. *(a)		8,874		376,701
OPNET Technologies, Inc.		5,808		181,326
Parametric Technology Corp. *		48,438		1,029,308
Pegasystems, Inc.		6,384		172,560
Perficient, Inc. *		14,742		157,887
Progress Software Corp. *		24,610		473,250
Proofpoint, Inc. *(a)		2,424		31,464
PROS Holdings, Inc. *		7,988		138,033
QLIK Technologies, Inc. *		30,805		651,526
Quest Software, Inc. *		22,901		640,083
QuinStreet, Inc. *		11,155		95,598
RealD, Inc. *(a)		16,000		158,560
RealNetworks, Inc. *		9,438		74,938
RealPage, Inc. *(a)		15,147		386,400
Responsys, Inc. *		8,553		82,023
Rosetta Stone, Inc. *		4,814		55,409
Saba Software, Inc. *		10,713		100,702
Sapient Corp. *		43,256		437,318
SciQuest, Inc. *		6,767		114,024
ServiceSource International, Inc. *		16,146		149,512
Solarwinds, Inc. *		23,166		1,271,350
Sourcefire, Inc. *		11,699		607,061
Splunk, Inc. *		6,318		217,339
SS&C Technologies Holdings, Inc. *		13,458		298,498
Synchronoss Technologies, Inc. *		13,689		314,984
Syntel, Inc.		6,093		355,222
Take-Two Interactive Software, Inc. *		35,802		366,971
Tangoe, Inc. *		8,313		134,671
TechTarget *		6,591		37,041
TeleCommunication Systems, Inc., Class A *		19,608		34,510
TeleNav, Inc. *		8,350		50,434
TeleTech Holdings, Inc. *		9,642		159,189
The Active Network, Inc. *		13,723		154,521
The Ultimate Software Group, Inc. *		10,881		1,079,286
TiVo, Inc. *		47,919		435,584
TNS, Inc. *		9,677		141,381
Travelzoo, Inc. *(a)		3,020		68,131
Tyler Technologies, Inc. *		11,792		474,746
Unisys Corp. *		15,774		333,305
United Online, Inc.		35,033		174,464
ValueClick, Inc. *		31,946		519,442
VASCO Data Security International, Inc. *		10,359		97,582
Verint Systems, Inc. *		8,778		251,314
VirnetX Holding Corp. *(a)		16,497		429,087
Virtusa Corp. *		8,349		141,098

See financial notes 99

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
VistaPrint N.V. *(a)		15,444		557,065
Vocus, Inc. *		8,189		159,030
Web.com Group, Inc. *		12,196		203,063
WebMD Health Corp. *		17,638		263,512
Websense, Inc. *		16,146		248,325
Wright Express Corp. *		15,444		1,016,833
XO Group, Inc. *		9,919		78,757
Yelp, Inc. *(a)		2,851		62,722
Zillow, Inc., ClassA *(a)		4,671		194,360

				54,955,036

Technology Hardware & Equipment 4.8%
Acme Packet, Inc. *		22,168		423,187
ADTRAN, Inc.		25,672		520,885
Aeroflex Holding Corp. *		7,050		50,055
Anaren, Inc. *		6,071		119,659
Anixter International, Inc.		11,934		717,591
Arris Group, Inc. *		47,385		645,858
Aruba Networks, Inc. *		43,467		854,127
Audience, Inc. *		2,124		38,381
Aviat Networks, Inc. *		22,518		51,341
Avid Technology, Inc. *		11,583		106,679
AVX Corp.		20,390		208,794
Bel Fuse, Inc., Class B		4,488		87,426
Benchmark Electronics, Inc. *		22,929		368,010
Black Box Corp.		7,023		182,528
Brightpoint, Inc. *		26,949		241,733
Brocade Communications Systems, Inc. *		179,010		1,038,258
Calix, Inc. *		13,961		74,133
Checkpoint Systems, Inc. *		16,179		129,270
Ciena Corp. *		41,067		561,386
Cognex Corp.		15,354		554,126
Coherent, Inc. *		9,477		446,272
Comtech Telecommunications Corp.		7,456		209,663
Comverse Technology, Inc. *		86,767		520,602
CTS Corp.		13,502		132,995
Daktronics, Inc.		15,444		147,645
Diebold, Inc.		24,921		811,926
Digi International, Inc. *		10,039		103,703
DTS, Inc. *		8,775		196,999
Echelon Corp. *		12,548		41,785
EchoStar Corp., Class A *		16,134		435,779
Electro Rent Corp.		7,085		121,295
Electro Scientific Industries, Inc.		9,814		120,320
Electronics for Imaging, Inc. *		18,584		287,123
Emulex Corp. *		33,932		232,434
Extreme Networks, Inc. *		36,681		130,584
Fabrinet *		7,675		91,947
FARO Technologies, Inc. *		6,669		263,092
Finisar Corp. *		35,580		488,869
Fusion-io, Inc. *(a)		23,868		668,781
Harmonic, Inc. *		45,762		209,132
Imation Corp. *		17,550		100,211
Infinera Corp. *		43,500		247,080
Insight Enterprises, Inc. *		17,414		312,755
InterDigital, Inc.		17,901		604,159
Intermec, Inc. *		19,719		116,736
Intevac, Inc. *		8,512		52,774
InvenSense, Inc. *(a)		13,563		170,623
IPG Photonics Corp. *		13,338		820,154
Itron, Inc. *		16,146		700,091
Ixia *		22,113		328,157
KEMET Corp. *		17,452		81,326
Lexmark International, Inc., Class A (a)		28,208		612,396
Littelfuse, Inc.		9,189		471,304
Loral Space & Communications, Inc.		4,845		355,720
Maxwell Technologies, Inc. *		11,294		85,947
Measurement Specialties, Inc. *		5,636		183,057
Mercury Computer Systems, Inc. *		12,148		118,564
Methode Electronics, Inc.		14,391		135,131
MTS Systems Corp.		6,318		321,018
Multi-Fineline Electronix, Inc. *		3,907		95,722
National Instruments Corp.		38,259		985,552
NeoPhotonics Corp. *		6,300		34,965
NETGEAR, Inc. *		14,878		544,088
Newport Corp. *		14,870		184,834
Novatel Wireless, Inc. *		12,725		25,832
Oclaro, Inc. *(a)		41,067		105,542
OCZ Technology Group, Inc. *(a)		26,102		147,737
Oplink Communications, Inc. *		7,597		122,084
OSI Systems, Inc. *		7,797		577,758
Park Electrochemical Corp.		7,460		193,811
Plantronics, Inc.		17,058		608,288
Plexus Corp. *		13,745		410,838
Power-One, Inc. *		25,585		157,092
Pulse Electronics Corp.		16,704		18,708
QLogic Corp. *		39,166		476,650
Quantum Corp. *		91,887		147,019
Rofin-Sinar Technologies, Inc. *		11,120		241,638
Rogers Corp. *		6,334		252,030
Sanmina-SCI Corp. *		31,962		276,152
ScanSource, Inc. *		11,583		350,270
SeaChange International, Inc. *		11,150		90,984
ShoreTel, Inc. *		9,608		38,432
Silicon Graphics International Corp. *(a)		12,636		107,911
Sonus Networks, Inc. *		82,882		159,962
STEC, Inc. *		14,794		109,624
Stratasys, Inc. *		8,775		567,392
Super Micro Computer, Inc. *		11,564		142,584
Sycamore Networks, Inc. *		7,591		112,195
Symmetricom, Inc. *		16,890		104,042
Synaptics, Inc. *		14,391		437,774
SYNNEX Corp. *		9,649		333,180
Tech Data Corp. *		16,497		801,424
Tellabs, Inc.		131,873		468,149
TTM Technologies, Inc. *		21,544		228,366
Ubiquiti Networks, Inc. *(a)		2,904		34,906
Universal Display Corp. *(a)		15,978		645,032
ViaSat, Inc. *		16,679		645,477
Viasystems Group, Inc. *		1,717		26,116
Vishay Intertechnology, Inc. *		57,151		546,364
Vishay Precision Group, Inc. *		5,221		70,692
Zebra Technologies Corp., Class A *		20,624		769,069

				30,847,861

Telecommunication Services 0.7%
Alaska Communications Systems Group, Inc. (a)		16,531		35,542
Atlantic Tele-Network, Inc.		3,861		145,482

100 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Boingo Wireless, Inc. *(a)		5,082		37,149
Cbeyond, Inc. *		12,285		99,509
Cincinnati Bell, Inc. *		83,889		393,439
Clearwire Corp., Class A *(a)		143,608		229,773
Cogent Communications Group, Inc.		18,416		360,954
Consolidated Communications Holdings, Inc. (a)		15,093		245,714
Elephant Talk Communications, Inc. *(a)		34,503		44,164
Fairpoint Communications, Inc. *(a)		7,260		47,408
General Communication, Inc., Class A *		14,041		123,842
Globalstar, Inc. *(a)		41,667		12,083
Hawaiian Telcom Holdco, Inc. *(a)		3,770		64,731
IDT Corp., Class B		6,130		61,607
Iridium Communications, Inc. *		17,974		133,187
Leap Wireless International, Inc. *		25,059		137,073
Lumos Networks Corp.		5,733		49,762
Neutral Tandem, Inc. *		12,715		139,865
NTELOS Holdings Corp.		5,733		98,436
Premiere Global Services, Inc. *		19,896		184,237
Shenandoah Telecommunications Co.		9,981		153,508
tw telecom, Inc. *		61,776		1,553,666
USA Mobility, Inc.		8,776		100,134
Vonage Holdings Corp. *		56,916		121,800

				4,573,065

Transportation 2.4%
Air Transport Services Group, Inc. *		22,183		103,151
Alaska Air Group, Inc. *		28,584		958,993
Allegiant Travel Co. *		5,967		395,254
AMERCO		2,457		228,624
Arkansas Best Corp.		10,299		94,545
Atlas Air Worldwide Holdings, Inc. *		10,533		542,449
Avis Budget Group, Inc. *		41,911		688,179
Baltic Trading Ltd.		15,093		46,486
Celadon Group, Inc.		9,126		150,670
Con-way, Inc.		22,092		669,609
Dollar Thrifty Automotive Group, Inc. *		11,583		1,009,574
Eagle Bulk Shipping, Inc. *(a)		5,967		17,066
Forward Air Corp.		11,331		380,948
Genco Shipping & Trading Ltd. *(a)		12,801		36,995
Genesee & Wyoming, Inc., Class A *		16,146		1,026,240
Hawaiian Holdings, Inc. *		20,334		120,581
Heartland Express, Inc.		21,153		275,412
Hub Group, Inc., Class A *		14,937		449,604
JetBlue Airways Corp. *		94,723		464,143
Kirby Corp. *		22,464		1,182,730
Knight Transportation, Inc.		22,357		319,705
Landstar System, Inc.		19,305		912,547
Marten Transport Ltd.		6,171		108,856
Matson, Inc.		16,679		378,447
Old Dominion Freight Line, Inc. *		21,762		974,502
Pacer International, Inc. *		13,814		56,637
Patriot Transportation Holding, Inc. *		3,160		81,054
RailAmerica, Inc. *		8,378		229,557
Republic Airways Holdings, Inc. *		17,793		79,179
Roadrunner Transportation Systems, Inc. *		4,978		87,015
Ryder System, Inc.		21,060		842,611
SkyWest, Inc.		20,134		176,575
Spirit Airlines, Inc. *		11,583		226,448
Swift Transporation Co. *		29,323		238,982
Universal Truckload Services, Inc.		2,268		32,160
US Airways Group, Inc. *		63,954		681,750
UTI Worldwide, Inc.		40,344		553,923
Werner Enterprises, Inc.		20,502		456,169
Wesco Aircraft Holdings, Inc. *		8,748		121,947
Zipcar, Inc. *(a)		10,164		80,296

				15,479,613

Utilities 2.9%
ALLETE, Inc.		13,496		560,894
American States Water Co.		7,371		321,228
Avista Corp.		23,868		606,247
Black Hills Corp.		15,654		535,367
California Water Service Group		16,475		301,328
CH Energy Group, Inc.		6,694		436,181
Chesapeake Utilities Corp.		3,781		177,064
Cleco Corp.		24,921		1,020,017
Connecticut Water Service, Inc.		3,408		105,137
El Paso Electric Co.		15,975		528,613
Genie Energy Ltd., Class B		6,841		48,571
GenOn Energy, Inc. *		307,635		778,317
Great Plains Energy, Inc.		55,107		1,174,881
Hawaiian Electric Industries, Inc.		38,961		1,033,635
IDACORP, Inc.		19,733		817,933
MGE Energy, Inc.		9,828		485,896
Middlesex Water Co.		6,048		113,400
New Jersey Resources Corp.		16,507		739,679
Northwest Natural Gas Co.		10,552		518,842
NorthWestern Corp.		15,093		552,404
Ormat Technologies, Inc.		7,111		135,038
Piedmont Natural Gas Co., Inc.		29,484		920,785
PNM Resources, Inc.		28,680		589,948
Portland General Electric Co.		29,748		798,436
SJW Corp.		5,309		124,124
South Jersey Industries, Inc.		11,824		598,531
Southwest Gas Corp.		18,603		795,278
The Empire District Electric Co.		16,550		349,371
The Laclede Group, Inc.		8,349		352,745
UIL Holdings Corp.		20,019		704,268
Unitil Corp.		5,283		139,471
UNS Energy Corp.		15,999		640,920
Vectren Corp.		33,345		940,662
WGL Holdings, Inc.		20,365		795,050

				18,740,261

Total Common Stock
(Cost $618,217,534)				640,571,485




Rights 0.0% of net assets

Banks 0.0%
Hampton Roads Bancshares *(b)(c)		9,275		47,346

See financial notes 101

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Forest Laboratories, Inc. *(b)(c)		5,521		—

Total Rights
(Cost $—)				47,346




Other Investment Company 0.0% of net assets

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund		248,097		248,097

Total Other Investment Company
(Cost $248,097)				248,097



End of Investments



Collateral Invested for Securities on Loan 3.1% of net assets


State Street Institutional U.S. Government Money Market Fund		19,789,415		19,789,415

Total Collateral Invested for Securities on Loan
(Cost $19,789,415)				19,789,415



End of Collateral Invested for Securities on Loan

At 08/31/12, the tax basis cost of the fund’s investments was $620,021,591 and the unrealized appreciation and depreciation were $79,897,315 and ($59,051,977), respectively, with a net unrealized appreciation of $20,845,338.


*		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 $47,346 or 0% of net assets.


REIT —		Real Estate Investment Trust

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2012 (see financial note 2(a) for additional information):


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

Common Stock¹		$640,571,485		$—		$—		$640,571,485
Rights¹		—		—		47,346		47,346
Other Investment Company¹		248,097		—		—		248,097

Total		$640,819,582		$—		$47,346		$640,866,928

Other Financial Instruments
Collateral Invested for Securities on Loan		$19,789,415		$—		$—		$19,789,415


¹		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

Balance

Change in

Balance

as of

Realized

Unrealized

Gross

as of

August 31,

Gains

Gross

Transfers

August 31,

Investments in Securities

2011

(Losses)

Purchases

Sales

out

2012

Rights

$—

$47,346

$—

$47,346

Total

$—

$47,346

$—

$47,346

102 See financial notes

Schwab U.S. Small-Cap ETF

Statement of

Assets and Liabilities

As of August 31, 2012



Assets

Investments, at value (cost $618,465,631) including securities on loan of $19,210,842		$640,866,928
Collateral invested for securities on loan		19,789,415
Cash		71
Receivables:
Investments sold		47,212
Dividends		508,773
Income from securities on loan		100,007
Interest	+	11

Total assets		661,312,417

Liabilities

Collateral held for securities on loan		19,789,415
Payables:
Investment adviser fees	+	6,802

Total liabilities		19,796,217

Net Assets

Total assets		661,312,417
Total liabilities	—	19,796,217

Net assets		$641,516,200

Net Assets by Source
Capital received from investors		622,887,214
Net investment income not yet distributed		1,521,196
Net realized capital losses		(5,293,507	)
Net unrealized capital gains		22,401,297

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$641,516,200

17,550,000

$36.55

See financial notes 103

Schwab U.S. Small-Cap ETF

Statement of

Operations

For September 1, 2011 through August 31, 2012



Investment Income

Dividends (net of foreign withholding tax of $252)		$8,045,028
Interest		299
Securities on loan	+	796,642

Total investment income		8,841,969

Expenses

Investment adviser fees		734,009

Total expenses	−	734,009

Net investment income		8,107,960

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(3,934,799	)
Net realized gains on in-kind redemptions	+	33,128,006

Net realized gains		29,193,207
Net unrealized gains on investments	+	34,591,730

Net realized and unrealized gains		63,784,937

Net increase in net assets resulting from operations		$71,892,897

104 See financial notes

Schwab U.S. Small-Cap ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/11-8/31/12				9/1/10-8/31/11
Net investment income		$8,107,960			$4,865,989
Net realized gains		29,193,207			16,916,401
Net unrealized gains	+	34,591,730			9,815,575

Net increase in net assets resulting from operations		71,892,897			31,597,965

Distributions to Shareholders

Distributions from net investment income		($7,088,515	)		($4,559,215	)

Transactions in Fund Shares

9/1/11-8/31/12

9/1/10-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares sold

7,400,000

$254,626,339

9,400,000

$323,402,760

Shares redeemed

(4,150,001

)

(140,437,449

)

(2,400,000

)

(81,228,190

)

Net transactions in fund shares

3,249,999

$114,188,890

7,000,000

$242,174,570

Shares Outstanding and Net Assets

9/1/11-8/31/12

9/1/10-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

14,300,001

$462,522,928

7,300,001

$193,309,608

Total increase

3,249,999

178,993,272

7,000,000

269,213,320

End of period

17,550,000

$641,516,200

14,300,001

$462,522,928

Net investment income not yet distributed

$1,521,196

$508,004

See financial notes 105

Schwab U.S. Dividend Equity ETF™

Financial Statements

Financial Highlights


	10/19/11¹–
	8/31/12


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.62
Net realized and unrealized gains (losses)		3.43

Total from investment operations		4.05
Less distributions:
Distributions from net investment income		(0.47	)

Net asset value at end of period		28.58

Total return (%)		16.31	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.17	³
Gross operating expenses		0.17	³
Net investment income (loss)		3.19	³
Portfolio turnover rate⁴		17	²
Net assets, end of period ($ x 1,000)		504,464

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.

106 See financial notes

Schwab U.S. Dividend Equity ETF

Portfolio Holdings as of August 31, 2012

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

Cost

Value

Holdings by Category

($)

.7%

Common Stock

480,428,338

502,803,587

.1%

Other Investment Company

428,571

.8%

Total Investments

480,856,909

503,232,158

.2%

Other Assets and
Liabilities, Net

1,231,638

100

.0%

Net Assets

504,463,796


	Number		Value
Security	of Shares		($)

Common Stock 99.7% of net assets

Banks 0.0%
First Financial Bancorp		10,660		173,545

Capital Goods 13.7%
3M Co.		120,385		11,147,651
Eaton Corp.		62,481		2,794,150
Emerson Electric Co.		137,675		6,982,876
General Dynamics Corp.		56,485		3,700,332
Honeywell International, Inc.		133,792		7,820,143
Illinois Tool Works, Inc.		77,665		4,604,758
Lockheed Martin Corp.		48,366		4,408,077
Northrop Grumman Corp.		43,777		2,928,244
Raytheon Co.		62,491		3,531,991
The Boeing Co.		123,915		8,847,531
United Technologies Corp.		148,265		11,838,960
Watsco, Inc.		4,947		373,301

				68,978,014

Commercial & Professional Services 0.6%
Waste Management, Inc.		81,195		2,807,723

Consumer Durables & Apparel 1.0%
Hasbro, Inc.		21,886		820,944
Leggett & Platt, Inc.		25,973		616,599
Mattel, Inc.		63,540		2,232,796
Polaris Industries, Inc.		12,007		902,806
Tupperware Brands Corp.		10,599		566,834

				5,139,979

Consumer Services 3.8%
Darden Restaurants, Inc.		24,004		1,247,008
H&R Block, Inc.		55,068		911,926
McDonald’s Corp.		190,279		17,028,068
Strayer Education, Inc.		2,187		141,674

				19,328,676

Diversified Financials 0.9%
Eaton Vance Corp.		21,663		586,850
Federated Investors, Inc., Class B		19,208		407,594
T. Rowe Price Group, Inc.		47,302		2,906,235
Waddell & Reed Financial, Inc., Class A		15,900		470,640

				4,371,319

Energy 12.0%
Chevron Corp.		212,511		23,835,234
ConocoPhillips		236,873		13,452,018
Exxon Mobil Corp.		264,402		23,082,294
RPC, Inc.		13,521		165,632

				60,535,178

Food & Staples Retailing 6.5%
Sysco Corp.		110,141		3,337,272
Wal-Mart Stores, Inc.		323,706		23,501,056
Walgreen Co.		161,686		5,781,891

				32,620,219

Food, Beverage & Tobacco 15.1%
Altria Group, Inc.		383,368		13,019,177
Campbell Soup Co.		36,717		1,290,235
ConAgra Foods, Inc.		77,660		1,950,043
Flowers Foods, Inc.		25,780		532,357
General Mills, Inc.		113,318		4,456,797
H.J. Heinz Co.		60,368		3,363,705
Kellogg Co.		45,537		2,306,449
McCormick & Co., Inc. Non Voting Shares		24,710		1,518,182
PepsiCo, Inc.		292,642		21,196,060
Reynolds American, Inc.		62,133		2,864,331
The Coca-Cola Co.		574,346		21,480,541
The Hershey Co.		29,662		2,130,325
Universal Corp.		4,283		203,143

				76,311,345

Health Care Equipment & Services 3.4%
Baxter International, Inc.		103,088		6,049,204
Becton, Dickinson & Co.		35,658		2,709,295
Medtronic, Inc.		195,214		7,937,401
Meridian Bioscience, Inc.		7,477		132,193
Owens & Minor, Inc.		11,740		328,603

				17,156,696

Household & Personal Products 7.7%
Avon Products, Inc.		80,837		1,248,932
Colgate-Palmolive Co.		82,261		8,745,167
Kimberly-Clark Corp.		73,782		6,168,175
The Procter & Gamble Co.		339,949		22,841,173

				39,003,447

See financial notes 107

Schwab U.S. Dividend Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Insurance 1.8%
Aflac, Inc.		88,255		4,075,616
Arthur J. Gallagher & Co.		22,244		794,556
Erie Indemnity Co., Class A		4,995		318,531
Mercury General Corp.		4,776		182,873
The Chubb Corp.		50,842		3,756,715

				9,128,291

Materials 4.0%
Air Products & Chemicals, Inc.		37,070		3,061,241
E.I. du Pont de Nemours & Co.		174,740		8,693,315
Greif, Inc., Class A		7,431		330,680
International Paper Co.		75,900		2,623,104
PPG Industries, Inc.		28,598		3,146,352
RPM International, Inc.		24,515		671,956
Sonoco Products Co.		19,072		583,412
Southern Copper Corp.		32,123		1,045,282

				20,155,342

Media 0.6%
Meredith Corp.		6,606		215,091
The McGraw-Hill Cos., Inc.		52,249		2,675,149

				2,890,240

Pharmaceuticals, Biotechnology & Life Sciences 12.1%
Abbott Laboratories		294,407		19,295,435
Bristol-Myers Squibb Co.		316,651		10,452,650
Eli Lilly & Co.		183,918		8,259,757
Johnson & Johnson		339,591		22,898,621

				60,906,463

Retailing 3.7%
Genuine Parts Co.		29,304		1,850,841
RadioShack Corp.		18,415		44,748
The Cato Corp., Class A		5,057		148,524
The Home Depot, Inc.		288,764		16,387,357

				18,431,470

Semiconductors & Semiconductor Equipment 4.9%
Intel Corp.		822,510		20,422,923
Linear Technology Corp.		39,889		1,317,334
Maxim Integrated Products, Inc.		55,421		1,504,126
Microchip Technology, Inc.		36,006		1,251,209

				24,495,592

Software & Services 1.8%
Automatic Data Processing, Inc.		92,491		5,371,878
CA, Inc.		68,134		1,773,528
Paychex, Inc.		60,716		2,019,414

				9,164,820

Technology Hardware & Equipment 0.3%
Harris Corp.		21,538		1,012,932
Molex, Inc.		27,566		731,877

				1,744,809

Telecommunication Services 1.0%
CenturyLink, Inc.		116,495		4,923,079

Transportation 1.7%
CSX Corp.		194,508		4,368,650
Norfolk Southern Corp.		61,081		4,425,929

				8,794,579

Utilities 3.1%
CenterPoint Energy, Inc.		74,130		1,511,511
Entergy Corp.		33,182		2,259,031
Exelon Corp.		158,502		5,780,568
New Jersey Resources Corp.		7,598		340,466
PPL Corp.		108,376		3,178,668
Questar Corp.		33,015		652,046
WGL Holdings, Inc.		9,536		372,286
Wisconsin Energy Corp.		43,419		1,648,185

				15,742,761

Total Common Stock
(Cost $480,428,338)				502,803,587




Other Investment Company 0.1% of net assets

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund		428,571		428,571

Total Other Investment Company
(Cost $428,571)				428,571



End of Investments

At 08/31/12, the tax basis cost of the fund’s investments was $480,906,351 and the unrealized appreciation and depreciation were $26,356,667 and ($4,030,860), respectively, with a net unrealized appreciation of $22,325,807.

108 See financial notes

Schwab U.S. Dividend Equity ETF

Portfolio Holdings continued

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2012 (see financial note 2(a) for additional information):

Quoted Prices in

Significant

Active Markets for

Significant Other

Unobservable

Identical Assets

Observable Inputs

Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Total²

Common Stock¹

$502,803,587

$—

$502,803,587

Other Investment Company¹

428,571

—

428,571

Total

$503,232,158

$—

$503,232,158


¹		As categorized in Portfolio Holdings.
²		The fund had no Other Financial Instruments.

See financial notes 109

Schwab U.S. Dividend Equity ETF

Statement of

Assets and Liabilities

As of August 31, 2012



Assets

Investments, at value (cost $480,856,909)		$503,232,158
Receivables:
Investments sold		2,848,238
Dividends		2,121,082
Interest	+	11

Total assets		508,201,489

Liabilities

Payables:
Investments bought		872,345
Investment adviser fees		7,196
Fund shares redeemed	+	2,858,152

Total liabilities		3,737,693

Net Assets

Total assets		508,201,489
Total liabilities	—	3,737,693

Net assets		$504,463,796

Net Assets by Source
Capital received from investors		479,731,248
Net investment income not yet distributed		2,747,882
Net realized capital losses		(390,583	)
Net unrealized capital gains		22,375,249

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$504,463,796

17,650,001

$28.58

110 See financial notes

Schwab U.S. Dividend Equity ETF

Statement of

Operations

For October 19, 2011* through August 31, 2012



Investment Income

Dividends		$8,274,206
Interest	+	72

Total investment income		8,274,278

Expenses

Investment adviser fees		417,031

Total expenses	−	417,031

Net investment income		7,857,247

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(397,073	)
Net realized gains on in-kind redemptions	+	5,442,892

Net realized gains		5,045,819
Net unrealized gains on investments	+	22,375,249

Net realized and unrealized gains		27,421,068

Net increase in net assets resulting from operations		$35,278,315


*		Commencement of operations.

See financial notes 111

Schwab U.S. Dividend Equity ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on October 19, 2011, it has no prior report period.


*10/19/11-8/31/12**
Net investment income		$7,857,247
Net realized gains		5,045,819
Net unrealized gains	+	22,375,249

Net increase in net assets resulting from operations		35,278,315

Distributions to Shareholders

Distributions from net investment income		($5,109,365	)

Transactions in Fund Shares


		*10/19/11-8/31/12**
			SHARES		VALUE
Shares sold			19,900,001		$536,746,165
Shares redeemed	+		(2,250,000	)	(62,451,319	)

Net transactions in fund shares			17,650,001		$474,294,846

Shares Outstanding and Net Assets

		*10/19/11-8/31/12**
			SHARES		NET ASSETS
Beginning of period			—		$—
Total increase	+		17,650,001		504,463,796

End of period			17,650,001		$504,463,796


Net investment income not yet distributed					$2,747,882


*		Commencement of operations.

112 See financial notes

Schwab U.S. ETFs

Financial Notes

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 as of the end of the period, including the funds discussed in this report, which are highlighted:



Schwab Strategic Trust (organized January 27, 2009)		Schwab U.S. REIT ETF
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 Short-Term U.S. Treasury ETF
Schwab U.S. Small-Cap ETF		Schwab Intermediate-Term U.S. Treasury ETF
Schwab U.S. Dividend Equity ETF		Schwab U.S. Aggregate Bond ETF

The funds issue and redeem shares at their net assets value per share (“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 or large investors purchase or redeem Creation Units. Except when aggregated in Creation Units, shares of the fund are not redeemable securities.

Individual shares of the funds trade on national securities exchanges and elsewhere during the trading day and can only be bought and sold at market prices throughout the trading day through a broker-dealer. Because fund shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).

Schwab U.S. Dividend Equity ETF commenced operations on October 19, 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 their preparation of financial statements. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

(a) Security Valuation:

Under procedures approved by the funds’ Board of Trustees (the Board), the investment adviser and administrator have formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair market value. Among other things, these procedures allow the funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

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 at halfway between the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.

	•	Securities for which no quoted value is available: The Board 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 it 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; or 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 Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activity, recent transactions,

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Financial Notes (continued)

2. Significant Accounting Policies (continued):


		market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. The Board convenes on a regular basis to review fair value determinations made by the funds pursuant to the procedures.


	•	Bonds and notes: valued 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.

	•	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.

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 prices 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 levels associated with valuing the funds’ investments as of August 31, 2012 are disclosed in the Portfolio Holdings.

(b) Accounting Policies for certain Portfolio Investments (if held):

Securities Lending: Under the Securities Lending Program, a fund (the “lender”) may make short-term loans of its securities to another party (the “borrower”) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash,

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Financial Notes (continued)

2. Significant Accounting Policies (continued):

securities issued or fully guaranteed by the U.S. government or foreign government, or letters of credit issued by a bank. Collateral at the individual loan level is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities and is marked to market daily. The cash collateral of securities loaned is invested in money market portfolios registered under Rule 2a-7 of the 1940 Act. Securities lending income, as disclosed in a fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent which are subject to adjustments pursuant to the securities lending agreement.

If applicable, the value of the securities on loan as of August 31, 2012 and the value of the related collateral are disclosed in the Portfolio Holdings and the Statement of Assets and Liabilities.

(c) Security Transactions:

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

(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 are charged directly to the fund.

(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 to 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 differences 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 be remote.

(j) New Accounting Pronouncements:

In December 2011, Accounting Standards Update (“ASU”) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities,” was issued and is effective for interim and annual periods beginning after January 1, 2013. The ASU enhances disclosure requirements with respect to an entity’s rights of offset and related arrangements associated with its financial and derivative instruments. Management is currently evaluating the impact the adoption of ASU 2011-11 may have on the funds’ financial statement disclosures.

115

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Financial Notes (continued)

3. Risk Factors:

Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.

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

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

Certain funds primarily invest in dividend paying stocks. As a result, fund performance will correlate directly with the performance of the dividend paying stock segment of the stock market, and a fund may underperform funds that do not limit their investments to dividend paying stocks. If stocks held by a fund reduce or stop paying dividends, a fund’s ability to generate income may be affected.

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. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

Certain funds invest in large-cap stocks. Large-cap stocks tend to go in and out of favor based on market and economic conditions. During a period when large-cap U.S. stocks fall behind other types of investments — mid- or small-cap stocks, for instance — a fund’s large-cap holdings could reduce performance.

Certain funds invest in mid-cap stocks. Historically, mid-cap stocks have been riskier than large-cap stocks. Mid-cap companies themselves may be more vulnerable to adverse business or economic events than larger, more established companies. Stock prices of midsized companies may be based in substantial part on future expectations rather than current achievements and may move sharply, especially during market upturns and downturns. During a period when mid-cap stocks fall behind other types of investments — bonds or large-cap stocks, for instance — a fund’s mid-cap holdings could reduce performance.

Certain funds invest in small-cap stocks. Historically, small-cap stocks have been riskier than large- and mid-cap stocks, and their prices may move sharply, especially during market upturns and downturns. Small-cap companies 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 — large-cap and mid-cap stocks, for instance — a fund’s small-cap holdings could reduce performance.

Certain funds invest in growth stocks. Growth stocks can be volatile. Growth companies usually invest a high portion of earnings in their businesses and may lack the dividends of value stocks that can cushion stock prices in a falling market. The prices of growth stocks are based largely on projections of the issuer’s future earnings and revenues. If a company’s earnings or revenues fall short of expectations, its stock price may fall dramatically. Growth stocks may also be more expensive relative to their earnings or assets compared to value or other stocks.

Certain funds emphasize a “value” style of investing, which targets undervalued companies with characteristics for improved valuations. This style of investing is subject to the risk that the valuations never improve or that the returns on “value” securities may not move in tandem with the returns on other styles of investing or the stock market in general.

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

As an index fund, each fund seeks to track the performance of its benchmark index, although it may not be successful in doing so. The divergence between the performance of a fund and its benchmark index, positive or negative, is called “tracking error.” Tracking error can be caused by many factors and it may be significant.

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Financial Notes (continued)

3. Risk Factors (continued):

securities and other traditional investments. Certain of these risks, such as market risk and liquidity risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to leverage risk, credit risk, lack of availability risk, valuation risk, correlation risk and tax risk. Leverage risk is the risk that use of derivatives may magnify the effect of any decrease or increase in the value of the fund’s portfolio securities. Credit risk is the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause a fund to realize higher amounts of short-term capital gain. These risks could cause a fund to lose more than the principal amount invested.

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

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.

To the extent that a fund’s or an index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector or asset class, the fund 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.

Although fund shares are listed on national securities exchanges, there can be no assurance that an active trading market for fund shares will develop or be maintained. If an active market is not maintained, investors may find it difficult to buy or sell fund shares.

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 a fund will approximate a 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 a 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 more 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 CSIM and the trust.

For its advisory services to the following funds, CSIM is entitled to receive an annual fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Dividend

Market

Large-Cap

Growth

Value

Mid-Cap

Small-Cap

Equity

ETF

0.06%

0.08%

0.13%

0.17%

Subsequent to the reporting period ended August 31, 2012, and effective September 20, 2012, the management fee of each fund has been reduced as follows:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Dividend

Market

Large-Cap

Growth

Value

Mid-Cap

Small-Cap

Equity

ETF

0.04%

0.07%

0.10%

0.07%

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Financial Notes (continued)

4. Affiliates and Affiliated Transactions (continued):

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. Below is the summary of investment activities involving The Charles Schwab Corporation shares owned by the funds during the report period:


	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			8/31/12		8/31/12		Period		Period

Schwab U.S. Broad Market ETF		52,662		25,661	*		(5,701	)		72,622		$979,671		$6,675		$16,205
Schwab U.S. Large-Cap ETF		52,452		16,988			(3,472	)		65,968		889,908		3,572		14,902
Schwab U.S. Large-Cap Growth ETF		53,760		26,891			(7,976	)		72,675		980,386		2,863		15,617


*		Includes 5,141 shares received in connection with a merger between optionsXpress Holdings, Inc. and The Charles Schwab Corporation.

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/or officers. For the period ended August 31, 2012, the funds had no direct 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 with other 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 (“State Street”) 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 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 its 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 interested persons for their services as trustees.

7. Borrowing from Banks:

The funds have access to custodian overdraft facilities and to an uncommitted line of credit of $100 million with State Street. The funds pay interest on the amounts they borrow at rates that are negotiated periodically.

There were no borrowings from the line of credit by the funds during the period. However, the funds may have utilized their overdraft facility and incurred interest expense, which is disclosed on the Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

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Financial Notes (continued)

8. Purchases and Sales/Maturities of Investment Securities:

For the period ended August 31, 2012, 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		$57,883,485		$48,499,586
Schwab U.S. Large-Cap ETF		37,901,543		31,161,121
Schwab U.S. Large-Cap Growth ETF		35,022,341		31,054,892
Schwab U.S. Large-Cap Value ETF		25,196,663		24,224,665
Schwab U.S. Mid-Cap ETF		32,778,687		29,359,767
Schwab U.S. Small-Cap ETF		79,475,535		65,162,172
Schwab U.S. Dividend Equity ETF		51,307,818		48,631,075

9. 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 may pay a purchase transaction fee and a redemption transaction fee directly to the applicable fund, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.

The in-kind transactions for the period ended August 31, 2012 were as follows:


	In-kind Purchases of Securities		In-kind Sales of Securities

Schwab U.S. Broad Market ETF		$282,954,250		$77,189,302
Schwab U.S. Large-Cap ETF		210,187,380		42,591,819
Schwab U.S. Large-Cap Growth ETF		159,114,156		46,614,519
Schwab U.S. Large-Cap Value ETF		139,625,012		33,871,880
Schwab U.S. Mid-Cap ETF		159,826,402		50,188,177
Schwab U.S. Small-Cap ETF		251,225,593		138,041,051
Schwab U.S. Dividend Equity ETF		532,171,822		59,466,047

For the period ended August 31, 2012, 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 capital received from investors 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 August 31, 2012 are disclosed in the funds’ Statements of Operations.

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Financial Notes (continued)

10. Federal Income Taxes

As of August 31, 2012, the components of distributable earnings on a tax-basis were as follows:


	Schwab U.S.						Schwab U.S.			Schwab U.S.									Schwab U.S.
	Broad			Schwab U.S.			Large-Cap			Large-Cap			Schwab U.S.			Schwab U.S.			Dividend
	Market			Large-Cap			Growth			Value			Mid-Cap			Small-Cap			Equity
	ETF			ETF			ETF			ETF			ETF			ETF			ETF

Undistributed ordinary income		$4,029,472			$3,272,234			$1,082,121			$1,690,952			$564,147			$1,531,491			$2,747,882
Undistributed long-term capital gains		—			—			—			—			—			—			—
Unrealized appreciation		151,158,596			135,212,683			72,032,936			42,424,788			16,542,066			79,897,315			26,356,667
Unrealized depreciation		(49,955,747	)		(39,643,602	)		(22,725,990	)		(12,082,298	)		(14,997,793	)		(59,051,977	)		(4,030,860	)
Other unrealized appreciation/(depreciation)		(2	)		—			—			—			—			(1	)		—

Net unrealized appreciation/(depreciation)		101,202,847			95,569,081			49,306,946			30,342,490			1,544,273			20,845,337			22,325,807

The primary difference between book-basis and tax-basis unrealized appreciation or unrealized depreciation of investments is the tax deferral of losses on wash sales and Real Estate Investment Trusts (REITs).

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of August 31, 2012, the following funds had capital loss carryforwards available to offset future net capital gains before the expiration dates:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Dividend

Market

Large-Cap

Growth

Value

Mid-Cap

Small-Cap

Equity

Expiration Date

ETF

August 31, 2019

$—

$721,062

$691,441

$295,384

$218,695

$927,631

$—

No expiration

1,084,809

1,748,175

2,600,479

1,253,997

982,935

2,820,210

—

Total

$1,084,809

$2,469,237

$3,291,920

$1,549,381

$1,201,630

$3,747,841

$—

For tax purposes, realized net capital losses and late-year ordinary losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. For the year ended August 31, 2012, the funds had capital losses deferred as follows:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Dividend

Market

Large-Cap

Growth

Value

Mid-Cap

Small-Cap

Equity

ETF

Deferred capital losses

$1,853,313

$58,588

$219,862

$261,308

$744,851

$—

$341,141

The tax-basis components of distributions paid during the current and prior fiscal years were:


	Schwab U.S.				Schwab U.S.		Schwab U.S.						Schwab U.S.
	Broad		Schwab U.S.		Large-Cap		Large-Cap		Schwab U.S.		Schwab U.S.		Dividend
	Market		Large-Cap		Growth		Value		Mid-Cap		Small-Cap		Equity
	ETF		ETF		ETF		ETF		ETF		ETF		ETF

Current period distributions
Ordinary Income		$16,859,390		$14,860,890		$4,082,865		$7,983,125		$1,917,350		$7,088,515		$5,109,365
Long-term capital gains		—		—		—		—		—		—		—

Prior period distributions
Ordinary Income		9,531,396		8,109,371		1,857,920		4,010,596		326,850		4,559,215		—
Long-term capital gains		—		—		—		—		—		—		—

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Financial Notes (continued)

10. Federal Income Taxes (continued):

Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as short-term capital gains and losses, in-kind transactions, capital losses related to wash sales and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the funds for financial reporting purposes. The funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.

The permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments have no impact on net assets or the results of operations. As of August 31, 2012, the funds made the following reclassifications:


	Schwab U.S.						Schwab U.S.			Schwab U.S.									Schwab U.S.
	Broad			Schwab U.S.			Large-Cap			Large-Cap			Schwab U.S.			Schwab U.S.			Dividend
	Market			Large-Cap			Growth			Value			Mid-Cap			Small-Cap			Equity
	ETF			ETF			ETF			ETF			ETF			ETF			ETF

Capital shares		$16,860,128			$9,655,720			$10,810,296			$6,056,073			$5,381,732			$32,843,558			$5,436,402
Undistributed net investment income		(138,276	)		(142,566	)		(11,631	)		(11,740	)		(19,030	)		(6,253	)		—
Net realized gains and losses		(16,721,852	)		(9,513,154	)		(10,798,665	)		(6,044,333	)		(5,362,702	)		(32,837,305	)		(5,436,402	)

For the period ended August 31, 2012, the following funds reclassified non-taxable security gains and losses realized on the in-kind redemption of Creation Units (Note 9) as an increase or decrease to capital received from investors in the Statement of Assets and Liabilities as follows:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Dividend

Market

Large-Cap

Growth

Value

Mid-Cap

Small-Cap

Equity

ETF

$16,926,932

$9,709,414

$10,825,074

$6,141,958

$5,490,632

$33,128,006

$5,442,892

As of August 31, 2012, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, 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, 2012, 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. However, such losses must be utilized prior to the pre-enactment capital losses, which increases the likelihood that the pre-enactment capital losses will expire unused. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital loss, 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.

The funds have adopted the noted provisions of the Act for the period ending August 31, 2012.

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Schwab U.S. ETFs

Financial Notes (continued)

11. 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.

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Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of:

Schwab U.S. Broad Market ETF

Schwab U.S. Large-Cap ETF

Schwab U.S. Large-Cap Growth ETF

Schwab U.S. Large-Cap Value ETF

Schwab U.S. Mid-Cap ETF

Schwab U.S. Small-Cap ETF

Schwab U.S. Dividend Equity ETF

In our opinion, the accompanying statements of assets and liabilities, including the portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Schwab U.S. Broad Market ETF, Schwab U.S. Large-Cap ETF, Schwab U.S. Large-Cap Growth ETF, Schwab U.S. Large-Cap Value ETF, Schwab U.S. Mid-Cap ETF, Schwab U.S. Small-Cap ETF and Schwab U.S. Dividend Equity ETF (seven of the funds constituting Schwab Strategic Trust, hereafter referred to as the “Funds”) at August 31, 2012, and the results of their operations, changes in their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2012 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 18, 2012

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Other Federal Tax Information (unaudited)

For corporate shareholders, the following percentage of the funds’ dividend distributions paid during the period ended August 31, 2012 qualify for the corporate dividends received deduction:


Schwab U.S. Broad Market ETF	92.60	%
Schwab U.S. Large-Cap ETF	96.95	%
Schwab U.S. Large-Cap Growth ETF	100.00	%
Schwab U.S. Large-Cap Value ETF	99.44	%
Schwab U.S. Mid-Cap ETF	80.19	%
Schwab U.S. Small-Cap ETF	70.01	%
Schwab U.S. Dividend Equity ETF	100.00	%

For the period ended August 31, 2012, the funds designated the following amounts of the dividend distributions as qualified dividends for the purpose of the maximum rate under section 1(h)(ii) of the Internal Revenue Code. Shareholders will be notified in January 2013 via IRS form 1099 of the amount for use in preparing their 2012 income tax return.


Schwab U.S. Broad Market ETF			$17,469,711
Schwab U.S. Large-Cap ETF			14,727,185
Schwab U.S. Large-Cap Growth ETF			4,586,543
Schwab U.S. Large-Cap Value ETF			8,536,428
Schwab U.S. Mid-Cap ETF			1,691,392
Schwab U.S. Small-Cap ETF			5,014,730
Schwab U.S. Dividend Equity ETF			—

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Other Information (unaudited)

Frequency Distribution of Discounts and Premiums

Bid/Offer Midpoint vs. NAV as of August 31, 2012

The following charts are provided to show the frequency at which the daily market price on the NYSE Arca, Inc. (“Exchange”), the secondary market for shares of each fund, was at a discount or premium to such fund’s daily NAV. The market price of each fund generally is determined using the midpoint between the highest bid and lowest offer on the Exchange, as of the time that the fund’s NAV is calculated (referred to as the “Bid/Offer Midpoint”). Each fund’s Bid/Offer Midpoint may at times be at, above or below its NAV. The discount or premium is the percentage difference between the NAV and the Bid/Offer Midpoint of a Fund. A discount is the amount that a fund is trading below the reported NAV, expressed as a percentage of NAV. A premium is the amount that a fund is trading above the reported NAV, expressed as a percentage of NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Bid/Offer Midpoint of each fund will fluctuate in accordance with changes in its NAV, as well as supply and demand.


	Bid/Offer Midpoint Above NAV						Bid/Offer Midpoint Below NAV
	50-99		100-199		>200		50-99		100-199		>200
	Basis Points		Basis Points		Basis Points		Basis Points		Basis Points		Basis Points

Schwab U.S. Broad Market ETF
Commencement of trading 11/3/09 through 8/31/12		1		—		—		—		—		—

Schwab U.S. Large-Cap ETF
Commencement of trading 11/3/09 through 8/31/12		—		—		—		—		—		—

Schwab U.S. Large-Cap Growth ETF
Commencement of trading 12/11/10 through 8/31/12		—		—		—		—		—		—

Schwab U.S. Large-Cap Value ETF
Commencement of trading 12/11/10 through 8/31/12		—		—		—		—		—		—

Schwab U.S. Mid-Cap ETF
Commencement of trading 01/13/11 through 8/31/12		—		—		—		—		—		—

Schwab U.S. Small-Cap ETF
Commencement of trading 11/3/09 through 8/31/12		1		—		—		—		—		—

Schwab U.S. Dividend Equity ETF
Commencement of trading 10/20/11 through 8/31/12		—		—		—		—		—		—

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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.

The Board of Trustees (the “Board” or the “Trustees”, as appropriate) calls and holds a meeting each year that is dedicated, in part, to considering whether to renew the investment advisory agreement between Schwab Strategic Trust (the “Trust”) and Charles Schwab Investment Management, Inc. (“CSIM”) (the “Agreement”) with respect to the existing funds in the Trust, including Schwab U.S. Broad Market ETF, Schwab U.S. Large-Cap ETF, Schwab U.S. Large-Cap Growth ETF, Schwab U.S. Large-Cap Value ETF, Schwab U.S. Mid-Cap ETF, Schwab U.S. Small-Cap ETF and Schwab U.S. Dividend Equity ETF (the “Funds”), and to review certain other agreements pursuant to which CSIM provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by CSIM, including information about CSIM’s affiliates, personnel and operations. The Board also receives extensive data provided by third parties. This information is in addition to the detailed information about the Fund that the Board reviews during the course of each year, including information that relates to Fund operations and Fund performance. In addition, the Independent Trustees meet in executive session outside the presence of fund management and participate in question and answer sessions with representatives of CSIM.

The Board, including a majority of the Independent Trustees, considered information specifically relating to its consideration of the continuance of the Agreement with respect to the Funds at a meeting held on August 28, 2012, and approved the renewal of the Agreement with respect to the Funds for an additional one year term. The Board’s approval of the Agreement with respect to the Funds was based on consideration and evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:


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

2.	each Fund’s investment performance and how it compared to that of certain other comparable exchange-traded funds;

3.	each Fund’s 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 the Funds, including both direct and indirect benefits accruing to CSIM and its affiliates; and

5.	the extent to which economies of scale would be realized as the Funds grow and whether fee levels in the Agreement 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 provided by CSIM to the Funds and the resources of CSIM and its affiliates dedicated to the Funds. In this regard, the Trustees evaluated, among other things, CSIM’s personnel, experience, track record and compliance program. The Trustees also considered Schwab’s wide range of products, services, and channel alternatives such as free advice, investment research tools and Internet access and an array of account features that benefit the Funds and their shareholders. The Trustees also considered Schwab’s excellent reputation as a full service brokerage firm and its overall financial condition. Finally, the Trustees considered that the vast majority of the Funds’ shareholders are also brokerage clients of Schwab. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by CSIM to the Funds and the resources of CSIM and its affiliates dedicated to the funds supported renewal of the Agreement with respect to the Funds.

Fund Performance. The Board considered each Fund’s performance in determining whether to renew the Agreement with respect to the Fund. Specifically, the Trustees considered each Fund’s performance relative to a peer category of other exchange-traded funds and appropriate indices/benchmarks, in light of total return, yield, if applicable, and market trends. As part of this review, the Trustees considered the composition of the peer category, selection criteria and the reputation of the third party who prepared the peer category analysis. In evaluating the performance of the Funds, the Trustees considered both risk and shareholder risk expectations for such Fund and the appropriateness of the benchmark used to compare the performance of the Fund. The Trustees further considered the level of Fund performance in the context of its review of Fund expenses and adviser profitability discussed below. Following such

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evaluation the Board concluded, within the context of its full deliberations, that the performance of the Fund supported renewal of the Agreement with respect to the Funds.

Fund Expenses. With respect to the Funds’ expenses, the Trustees considered the rate of compensation called for by the Agreement, and each Fund’s operating expense ratio, in comparison to those of other comparable exchange-traded funds, such peer groups and comparisons having been selected and calculated by an independent third party. The Trustees also considered fees charged by CSIM to mutual funds that it manages. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the Fund are reasonable and supported renewal of the Agreement with respect to the Funds.

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

Economies of Scale. The Trustees considered the existence of any economies of scale and whether those are passed along to the Funds’ shareholders by way of the relatively low advisory fee and unitary fee structure of the Funds. Based on this evaluation, and in consideration of the previously negotiated commitments made by CSIM and Schwab as discussed above, the Board concluded, within the context of its full deliberations, that the Fund obtains reasonable benefit from economies of scale.

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, approved the continuation of the Agreement with respect to the Funds and concluded that the compensation under the Agreement with respect to the Funds is fair and reasonable in light of such services and expenses and such other matters as the Trustees have considered to be relevant in the exercise of their reasonable judgment.

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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 91 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 (January 2009 – present). 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).	17	Director, PS Business Parks, Inc. (2005 – Feb. 2012). Trustee, PIMCO Funds (investment company consisting of 84 portfolios) (1997 – 2008). Trustee, PIMCO Variable Insurance Trust (investment company consisting of 16 portfolios) (1997 – 2008). Director and Chairman, PIMCO Strategic Global Government Fund (investment company consisting of one portfolio) (1997 – 2008). Director, PCM 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, Inc. (certified public accountants and advisers) (May 1987 – present).	17	None


Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Advisor (January 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).	17	None

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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.	91	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 – Oct. 2011), Charles Schwab Investment Management, Inc.; President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; 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 Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust (June 2006 – June 2007).


Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President and Chief Investment Officer — Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer — Equities, Schwab Funds and Laudus Funds (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009).


Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds and Laudus Funds (June 2011 – present); Senior Managing Director, Global Head of Active Fixed Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies, Loomis, Sayles & Company (April 2006 – Jan. 2008); Managing Director, Head of Market-Based Strategies State Street Research (August 2003 – Jan. 2005).

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Officers of the Trust (continued)


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

David Lekich 1964 Secretary and Chief Legal Officer (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President, Charles Schwab & Co., Inc. (Sept. 2011 – present); Senior Vice President and Chief Counsel, Charles Schwab Investment Management Inc. (Sept. 2011 – present); Vice President, Charles Schwab & Co., Inc., (March 2004 – Sept. 2011) and Charles Schwab Investment Management, Inc. (Jan 2011 – Sept. 2011); Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds (April 2011 – present); Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.


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 (March 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary, 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 owns stock of The Charles Schwab Corporation, the parent company of the investment adviser.
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.

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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.

dividend yield A stock’s indicated annual dividend divided by current price. At the portfolio level, it is the value-weighted average of the dividend yield of the securities in the portfolio.

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.

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.

131

SEC yield A standard yield calculation developed by the Securities and Exchange Commission (SEC) that allows for fairer comparisons of bond funds. It is based on the most recent 30-day period covered by the fund’s filings with the SEC. The yield figure reflects the dividends and interest earned during the period, after the deduction of the fund’s expenses. This is also referred to as the “standardized yield.”

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.

132

PRIVACY NOTICE
THIS IS NOT PART OF THE SHAREHOLDER REPORT

A Commitment to Your Privacy

Your Privacy Is Not for Sale

We do not and will not sell your personal information to anyone, for any reason.

We are committed to protecting the privacy of information we maintain about you. Below are details about our commitment, including the types of information we collect and how we use and share that information. This Privacy Notice applies to you only if you are an individual who invests directly in the funds by placing orders through the funds’ transfer agent. If you place orders through your brokerage account at Charles Schwab & Co., Inc. or an account with another broker-dealer, investment advisor, 401(k) plan, employee benefit plan, administrator, bank or other financial intermediary, you are covered by the privacy policies of that financial institution and should consult those policies.

How We Collect Information About You

We collect personal information about you in a number of ways.


•	APPLICATION AND REGISTRATION INFORMATION.

We collect personal information from you when you open an account or utilize one of our services. We may also collect information about you from third parties such as consumer reporting agencies to verify your identity. The information we collect may include personal information, including your Social Security number, as well as details about your interests, investments and investment experience.


•	TRANSACTION AND EXPERIENCE INFORMATION.

Once your account has been opened, we collect and maintain personal information about your account activity, including your transactions, balances, positions and history. This information allows us to administer your account and provide the services you have requested.


•	WEBSITE USAGE.

When you visit our websites, we may use devices known as “cookies,” graphic interchange format files (GIFs), or other similar web tools to enhance your web experience. These tools help us to recognize you, maintain your web session, and provide a more personalized experience. To learn more, please click the Privacy link on our website.

How We Share and Use Your Information

We provide access to information about you to our affiliated companies, outside companies and other third parties in certain limited circumstances, including:


•	to help us process transactions for your account;

•	when we use other companies to provide services for us, such as printing and mailing your account statements;

•	when we believe that disclosure is required or permitted under law (for example, to cooperate with regulators or law enforcement, resolve consumer disputes, perform credit/authentication checks, or for risk control).

State Laws

We will comply with state laws that apply to the disclosure or use of information about you.

Safeguarding Your Information — Security Is a Partnership

We take precautions to ensure the information we collect about you is protected and is accessed only by authorized individuals or organizations.

Companies we use to provide support services are not allowed to use information about our shareholders for their own purposes and are contractually obligated to maintain strict confidentiality. We limit their use of information to the performance of the specific services we have requested.

We restrict access to personal information by our employees and agents. Our employees are trained about privacy and are required to safeguard personal information.

We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

Contact Us

To provide us with updated information, report suspected fraud or identity theft, or for any other questions, please call the number below.

Schwab ETF^tm direct investors: 1-800-435-4000

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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 each a solid investment option 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 fund’s 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. Dividend Equity 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 U.S. Aggregate Bond ETF^tm

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.

MFR57932-02

00088952

Annual report dated August 31, 2012, 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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This wrapper is not part of the shareholder report.

Schwab International ETFs

Annual Report

August 31, 2012

Schwab International

Equity ETF^tm

Schwab International Small-Cap

Equity ETF^tm

Schwab Emerging Markets

Equity ETF^tm

This page is intentionally left blank.

In This Report


Performance at a Glance		2
From the President		3
Fund Management		5
Performance and Fund Facts
Schwab International Equity ETF™		6
Schwab International Small-Cap Equity ETF™		8
Schwab Emerging Markets Equity ETF™		10
Fund Expenses		12
Financial Statements and Portfolio Holdings
Schwab International Equity ETF™		13
Schwab International Small-Cap Equity ETF™		34
Schwab Emerging Markets Equity ETF™		55
Financial Notes		72
Report of Independent Registered Public Accounting Firm		81
Other Federal Tax Information		82
Other Information		83
Investment Advisory Agreement Approval		84
Trustees and Officers		86
Glossary		89

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	-0.79%	*
Market Price Return¹	-0.27%
FTSE Developed ex-US Index	-0.85%
ETF Category: Morningstar Foreign Large Blend²	-1.62%


Performance Details	pages 6-7




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


NAV Return¹	-5.91%
Market Price Return¹	-5.35%
FTSE Developed Small Cap ex-US Liquid Index	-6.14%
ETF Category: Morningstar Foreign Small/Mid Blend²	-6.67%


Performance Details	pages 8-9




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


NAV Return¹	-7.04%
Market Price Return¹	-6.62%
FTSE All-Emerging Index	-6.64%
ETF Category: Morningstar Diversified Emerging Markets²	-5.83%


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.


*		Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semiannual reports.
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. 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		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.

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.

Dear Shareholder,

As President and CEO of Charles Schwab Investment Management, Inc., I’d like to thank you for trusting us to help you meet your investment objectives, and for reading this important report concerning the Schwab International ETFs. For the 12 months ended August 31, 2012, international stocks endured strong headwinds and lackluster global growth, posting mixed returns in local-currency terms that generally translated into losses in U.S. dollar terms as many major currencies depreciated versus the U.S. dollar.

European developments dominated the headlines, while economic growth around the globe remained subdued. The euro zone continued to face challenging times amid economic austerity measures brought on by the region’s sovereign debt crisis. The European Central Bank worked diligently in this environment to ensure stability and adequate liquidity in the financial markets. Greece restructured its debt in 2012, giving investor confidence a temporary lift, but attention soon turned to the much larger debt markets of Italy and Spain. Emerging economies generally faced slower-growth scenarios, while economic activity in China—a relative bright spot among developing markets in recent years—slowed but remained robust.

The often-challenging international backdrop translated into declines for many major world currencies versus the U.S. dollar, weighing on international stock returns for U.S. investors. Illustrating this performance, the FTSE Developed ex-US Index (Net) returned -0.85% in U.S. dollar terms, weighed down by modest declines in the value of Australian, Canadian, British, and Japanese

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.



		18.00%		S&P 500^® Index: measures U.S. large-cap stocks

		13.40%		Russell 2000^® Index: measures U.S. small-cap stocks

		0.47%		MSCI EAFE^® Index: measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East

		5.78%		Barclays U.S. Aggregate Bond Index: measures the U.S. bond market

		0.05%		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.

Schwab International ETFs 3

From the President continued

The often-challenging international backdrop translated into declines for many major world currencies versus the U.S. dollar, weighing on international stock returns for U.S. investors.

currencies relative to the U.S. dollar, in addition to the double-digit depreciation of the euro. Losses for international small-cap and emerging-market stocks were generally more pronounced in U.S. dollar terms.

Thank you for investing in the Schwab International ETFs. As you may be aware, we recently announced that effective September 20, 2012, we reduced the operating expense ratios (OERs) on our entire suite of ETFs. As a result, Schwab ETFs now have some of the lowest OERs in their respective Lipper categories.*

We encourage you to review your investment portfolio regularly to ensure that it meets your current financial plan. For answers to frequently asked questions or for more information about the Schwab International ETFs, please visit www.schwabetfs.com. We are also happy to hear from you at 1-800-435-4000.

Sincerely,

Indices are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly. Index return figures assume dividends and distributions were reinvested.


*		This claim is based on expense ratio data comparisons between Schwab and non-Schwab ETFs in their respective Lipper categories. Expense ratio data for non-Schwab ETFs were obtained from the funds’ prospectuses as of 9/4/12. Expense ratio data for Schwab ETFs^tm are as of 9/20/12. ETFs in the same Lipper category may track different indexes, have differences in holdings, and show different performances. Expense ratios are subject to change. Information has been sourced from Lipper, a Thomson Reuters Company (“Lipper Content”). All such information is protected by copyright: ^© 2012 THOMSON REUTERS. All rights reserved.

4 Schwab International ETFs

Fund Management



		Agnes Hong, CFA, a managing director and portfolio manager of the investment adviser, has day-to-day responsibility for the co-management of the funds. Prior to joining the firm in September 2009, she worked for five years as a portfolio manager for a major asset management firm. Prior to that, she worked in strategy and management consulting for five years. In addition, she also worked as a senior product manager servicing global financial services clients.

		Ferian Juwono, CFA, a managing director and portfolio manager of the investment adviser, has day-to-day responsibility for the 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 is comprised of large- and mid-capitalization companies in developed countries outside the U.S., as defined by the index provider. The index defines the large- and mid-capitalization universe as approximately the top 90% of the eligible universe. 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 12-month period that ended August 31, 2012, the fund closely tracked the index. The fund’s market price return was -0.27% and its NAV return was -0.79% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned -0.85% during the same period. Because the return of the index does not include operational and transactional costs, the return of the fund tends to differ from that of the index.

Market Highlights. Large- and mid-cap international stocks generated modestly negative overall returns in U.S. dollar terms, with country markets in the index generating mixed results. The euro zone’s sovereign debt crisis weighed on the performance of international stocks, as did lackluster overall growth in developed economies around the world. The decline of most major currencies from the British pound to Swiss franc versus the U.S. dollar also reduced international stock returns in U.S. dollar terms.

Contributors and Detractors. U.K. stocks were some of the biggest contributors to the index’s return, and to the return of the fund. The large average weight of this market reflected part of the reason for this contribution, with shares of U.K. companies representing approximately 19% of the fund. Stocks of U.K. companies benefitted from being alternatives to the crisis-plagued euro zone. U.K. stocks returned nearly 8% in U.S. dollar terms, a return that would have been higher for U.S. investors if not for the roughly 2% depreciation of the British pound versus the U.S. dollar. The fund’s holdings of mobile communications provider Vodafone Group provided one example of this market’s performance, returning approximately 19% for the fund.

German stocks, which represented an average weight of nearly 7%, also provided meaningful contributions. Shares of German companies returned approximately 5% for the fund in U.S. dollar terms, benefitting from the country’s safe-haven allure compared with many of Europe’s more debt-challenged members. Although modest once converted into U.S. dollars, the return on German stocks was far more significant in local-currency terms that excluded the euro’s roughly 12% decline versus the U.S. dollar. Shares of pharmaceutical manufacturer Bayer AG provided one example of the performance of German stocks, returning 24% for the fund.

Japanese stocks were some of the bigger detractors from the performance of the index, and from the performance of the fund. Shares of Japanese companies represented an average weight of approximately 17% of the fund. With Japan continuing to grapple with deflation and uninspiring economic growth, stocks in the country returned approximately -5% in U.S. dollar terms, which included a 2% depreciation in the value of the yen relative to the U.S. dollar. Shares of imaging solutions company Canon Inc. provided one example of the performance of Japanese stocks, returning -25% for the fund.

As of 08/31/12:

Statistics


Number of Holdings			1,078
Weighted Average Market Cap ($ x 1,000,000)			$46,533
Price/Earnings Ratio (P/E)			18.6
Price/Book Ratio (P/B)			1.1
Portfolio Turnover Rate¹			8%

Sector Weightings % of Investments


Financials			23.8%
Industrials			12.0%
Consumer Staples			11.3%
Consumer Discretionary			10.3%
Materials			10.1%
Energy			9.7%
Health Care			8.6%
Information Technology			5.6%
Telecommunication Services			4.9%
Utilities			3.7%
Total			100.0%

Top Equity Holdings % of Net Assets²


Nestle S.A. – Reg’d			1.7%
Samsung Electronics Co., Ltd. GDR – Reg’d			1.3%
Novartis AG – Reg’d			1.2%
HSBC Holdings plc			1.2%
Vodafone Group plc			1.1%
BP plc			1.1%
Royal Dutch Shell plc, A Shares			1.0%
Roche Holding AG			1.0%
Total S.A.			0.9%
GlaxoSmithKline plc			0.9%
Total			11.4%

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

Source of Sector Classification: S&P and MSCI.


¹		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
²		This list is not a recommendation of any security by the investment adviser.

6 Schwab International ETFs

Schwab International Equity ETF^tm

Performance and Fund Facts as of 08/31/12

November 3, 2009 – August 31, 2012
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	1 Year				Since Inception**


Fund: Schwab International Equity ETF^tm (11/3/09)
NAV Return²		-0.79	%	*	2.25%
Market Price Return²		-0.27	%		2.46%
FTSE Developed ex-US Index		-0.85	%		2.40%
ETF Category: Morningstar Foreign Large Blend³		-1.62	%		2.93%

Fund Expense Ratio⁴: 0.13%

Country Weightings % of Investments


United Kingdom			19.2%
Japan			16.3%
Canada			9.0%
France			8.4%
Australia			7.7%
Switzerland			7.3%
Germany			6.9%
Republic of Korea			5.0%
Hong Kong			4.2%
Sweden			2.7%
Other Countries			13.3%
Total			100.0%

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


*		Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semiannual reports.
**		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 dated December 17, 2011. Effective September 20, 2012, the management fee was reduced to 0.09%. For more information, see financial note 4 or refer to the prospectus supplement dated September 20, 2012.

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 is comprised of small-capitalization companies in developed countries outside the U.S., as defined by the index provider. The index defines the small-capitalization universe as approximately the bottom 10% of the eligible universe with a minimum free-float capitalization of $150 million. 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 12-month period that ended August 31, 2012, the fund closely tracked the index. The fund’s market price return was -5.35% and its NAV return was -5.91% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned -6.14% during the same period. Because the return of the index does not include operational and transactional costs, the return of the fund tends to differ from that of the index.

Market Highlights. Small-cap international stocks generated modestly negative overall returns in U.S. dollar terms, with country markets in the index generating mixed results. The euro zone’s sovereign debt crisis weighed on the performance of international stocks, as did lackluster overall growth in developed economies around the world. The decline of most major currencies from the British pound to Swiss franc versus the U.S. dollar also reduced international stock returns in U.S. dollar terms.

Contributors and Detractors. U.K. stocks were some of the biggest contributors to the index’s return, and to the return of the fund. The large average weight of this market reflected part of the reason for this contribution, with shares of U.K. companies representing approximately 17% of the fund. Stocks of U.K. companies benefitted from being alternatives to the crisis-plagued euro zone. U.K. stocks returned approximately 13% for the fund in U.S. dollar terms, a return that would have been higher still for U.S. investors if not for the roughly 2% depreciation of the British pound versus the U.S. dollar. Aberdeen Asset Management was a key U.K. performer. Stock of this large money management firm returned nearly 42% for the fund.

Singaporean stocks, which represented an average weight of nearly 2% of the fund, also positively contributed to performance. Stocks in Singapore returned approximately 4% for the fund in U.S. dollar terms, which included a roughly 3% decline in the value of Singapore’s dollar relative to the U.S. dollar. Like other countries in the region, Singapore faced its share of challenges, enduring economic contraction toward the latter part of the report period as manufacturing output slowed amid lackluster global demand. Shares of SATS Ltd. provided one example of this market’s performance. The ground-handling and in-flight catering company returned approximately 23% for the fund.

Japanese stocks were some of the bigger detractors from the fund’s performance. Shares of Japanese companies represented an average weight of approximately 15%. With Japan continuing to grapple with deflation and uninspiring economic growth, stocks in the country returned approximately -6% in U.S. dollar terms, which included a 2% depreciation in the value of the yen relative to the U.S. dollar. Shares of capacitor manufacturer and marketer Nichicon Corp. provided one example of the performance of Japanese stocks, returning -47% for the fund.

As of 08/31/12:

Statistics


Number of Holdings			1,035
Weighted Average Market Cap ($ x 1,000,000)			$1,950
Price/Earnings Ratio (P/E)			25.5
Price/Book Ratio (P/B)			1.3
Portfolio Turnover Rate¹			25%

Sector Weightings % of Investments


Industrials			19.8%
Financials			18.3%
Consumer Discretionary			16.0%
Materials			12.9%
Energy			9.4%
Information Technology			7.6%
Consumer Staples			6.4%
Health Care			5.7%
Utilities			2.7%
Telecommunication Services			1.1%
Other			0.1%
Total			100.0%

Top Equity Holdings % of Net Assets²


Catamaran Corp.			0.6%
Pembina Pipeline Corp.			0.5%
Franco-Nevad Corp.			0.5%
Athabasca Oil Corp.			0.5%
Metro, Inc.			0.5%
Progress Energy Resources Corp.			0.4%
Viterra, Inc.			0.4%
Baytex Energy Corp.			0.4%
Croda International plc			0.4%
Onex Corp.			0.3%
Total			4.5%

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

Source of Sector Classification: S&P and MSCI.


¹		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
²		This list is not a recommendation of any security by the investment adviser.

8 Schwab International ETFs

Schwab International Small-Cap Equity ETF^tm

Performance and Fund Facts as of 08/31/12

January 14, 2010 – August 31, 2012
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	1 Year			Since Inception*


Fund: Schwab International Small-Cap Equity ETF^tm (1/14/10)
NAV Return²		-5.91	%	2.18%
Market Price Return²		-5.35	%	2.24%
FTSE Developed Small Cap ex-US Liquid Index		-6.14	%	2.39%
ETF Category: Morningstar Foreign Small/Mid Blend³		-6.67	%	1.50%

Fund Expense Ratio⁴: 0.35%

Country Weightings % of Investments


Canada			21.9%
United Kingdom			19.3%
Japan			14.1%
Australia			7.2%
Germany			4.5%
Republic of Korea			4.3%
Hong Kong			3.9%
Switzerland			3.3%
France			3.0%
Sweden			2.5%
Other Countries			16.0%
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 dated December 17, 2011. Effective September 20, 2012, the management fee was reduced to 0.20%. For more information, see financial note 4 or refer to the prospectus supplement dated September 20, 2012.

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 is comprised of the large- and mid-capitalization companies in emerging market countries, as defined by the index provider. The index defines the large- and mid-capitalization universe as approximately the top 90% of the eligible universe. 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 12-month period that ended August 31, 2012, the fund closely tracked the index. The fund’s market price return was -6.62% and its NAV return was -7.04% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned -6.64% during the same period. Because the return of the index does not include operational and transactional costs, the return of the fund tends to differ from that of the index.

Market Highlights. Emerging market stocks generated disappointing returns, as global economic growth softened and the euro zone’s sovereign debt crisis continued, while the country markets represented by the index generated mixed returns. Particularly weighing on performance were signs of a slowdown in manufacturing activity in countries such as Brazil and Taiwan, while China, Russia, and India were relative bright spots of economic activity.

Contributors and Detractors. Malaysian stocks were some of the biggest contributors to the index’s return, and to the return of the fund. The relatively large average weight of this market compared with other markets reflected part of the reason for this contribution. Shares of companies in Malaysia represented an average weight of approximately 5% of the fund. Malaysian stocks returned nearly 11% in U.S. dollar terms, a return that would have been higher for U.S. investors if not for the roughly 5% depreciation of the Malaysian ringgit versus the U.S. dollar. The fund’s shares of Malayan Banking provided one example of the performance of this market, returning 9% for the fund as Malaysia enjoyed moderate economic growth and unemployment levels that hovered around 3.1% in early 2012.

Turkish stocks, which represented an average weight of nearly 2%, also positively contributed to performance. Stocks in Turkey returned an impressive 22% for the fund in U.S. dollar terms, a return that was more noteworthy still when considering the roughly 6% decline in the value of Turkey’s lira relative to the U.S. dollar. Turkey enjoyed respectable economic growth in recent years, holding up better than many other economies around the world. Shares of retail and commercial banking company Turkiye Garanti Bankasi provided one example of the performance of Turkish stocks, returning approximately 21% for the fund.

Brazilian stocks were some of the most significant detractors from the performance of the index and fund. Shares of companies in Brazil represented an average weight of approximately 18%. With Brazil facing decelerating economic growth, lighter demand for private-sector loans, and continuing to grapple with inflation concerns, stocks in the country returned approximately -16% in U.S. dollar terms. However, returns would have been far better for U.S. investors if not for the sharp 22% depreciation in the value of Brazil’s real relative to the U.S. dollar. ADRs representing common stock of metals producer Vale SA provided one example of the performance of Brazilian stocks, returning -39% for the fund.

As of 08/31/12:

Statistics


Number of Holdings			611
Weighted Average Market Cap ($ x 1,000,000)			$29,315
Price/Earnings Ratio (P/E)			13.6
Price/Book Ratio (P/B)			1.4
Portfolio Turnover Rate¹			9%

Sector Weightings % of Investments


Financials			26.7%
Energy			14.9%
Materials			11.8%
Telecommunication Services			9.8%
Consumer Staples			9.8%
Information Technology			9.0%
Consumer Discretionary			6.1%
Industrials			5.9%
Utilities			4.0%
Health Care			1.5%
Other			0.5%
Total			100.0%

Top Equity Holdings % of Net Assets²


Taiwan Semiconductor Manufacturing Co, Ltd. ADR			2.4%
China Mobile Ltd.			2.0%
Petroleo Brasileiro S.A. ADR, Pfd			1.8%
America Movil S.A.B. de C.V., Series L			1.5%
China Construction Bank Corp., H Shares			1.5%
Gazprom OAO ADR			1.4%
Companhia de Bebidas das Americas ADR			1.3%
Petroleo Brasileiro S.A. ADR			1.2%
MTN Group Ltd.			1.2%
LUKOIL OAO ADR			1.1%
Total			15.4%

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

Source of Sector Classification: S&P and MSCI.


¹		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
²		This list is not a recommendation of any security by the investment adviser.

10 Schwab International ETFs

Schwab Emerging Markets Equity ETF^tm

Performance and Fund Facts as of 08/31/12

January 14, 2010 – August 31, 2012
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


Fund and Inception Date	1 Year			Since Inception*


Fund: Schwab Emerging Markets Equity ETF^tm (1/14/10)
NAV Return²		-7.04	%	-0.77%
Market Price Return²		-6.62	%	-0.49%
FTSE All-Emerging Index		-6.64	%	-0.31%
ETF Category: Morningstar Diversified Emerging Markets³		-5.83	%	-0.73%

Fund Expense Ratio⁴: 0.25%

Country Weightings % of Investments


Brazil			16.8%
China			16.6%
Taiwan			13.1%
South Africa			10.7%
India			8.9%
Russia			6.7%
Mexico			5.9%
Malaysia			5.0%
Indonesia			3.2%
Thailand			2.6%
Other Countries			10.5%
Total			100.0%

Emerging markets involve heightened risks related to the same factors as international investing, 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 dated December 17, 2011. Effective September 20, 2012, the management fee was reduced to 0.15%. For more information, see financial note 4 or refer to the prospectus supplement dated September 20, 2012.

Schwab International ETFs 11

Fund Expenses (Unaudited)

Examples for a $1,000 Investment


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio¹		Account Value		(Net of Expenses)		During Period²
	(Annualized)		at 3/1/12		at 8/31/12		3/1/12–8/31/12

Schwab International Equity ETF^tm
Actual Return		0.13%	$	1,000	$	958.90	$	0.64
Hypothetical 5% Return		0.13%	$	1,000	$	1,024.48	$	0.66


Schwab International Small-Cap Equity ETF^tm
Actual Return		0.35%	$	1,000	$	938.70	$	1.71
Hypothetical 5% Return		0.35%	$	1,000	$	1,023.38	$	1.78


Schwab Emerging Markets Equity ETF^tm
Actual Return		0.25%	$	1,000	$	886.40	$	1.19
Hypothetical 5% Return		0.25%	$	1,000	$	1,023.88	$	1.27


¹		Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights which covers a 12-month period.
²		Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by 366 days of the fiscal year.

12 Schwab International ETFs

Schwab International Equity ETF™

Financial Statements

Financial Highlights


	9/1/11–			9/1/10–			10/30/09¹–
	8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		25.99			23.82			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.76			0.68			0.38
Net realized and unrealized gains (losses)		(1.04	)		1.96	²		(1.52	)

Total from investment operations		(0.28	)		2.64			(1.14	)
Less distributions:
Distributions from net investment income		(0.75	)		(0.47	)		(0.04	)

Net asset value at end of period		24.96			25.99			23.82

Total return (%)		(0.75	)		11.04			(4.57	)³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.13			0.13			0.14	^4,5
Gross operating expenses		0.13			0.13			0.14	⁴
Net investment income (loss)		3.40			3.10			2.94	⁴
Portfolio turnover rate⁶		8			6			6	³
Net assets, end of period ($ x 1,000)		768,666			634,208			285,869

¹ Commencement of operations.

³ Not annualized.

⁴ Annualized.

⁵ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended 8/31/10 is a blended rate.

⁶ 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 August 31, 2012

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	.0%	Common Stock		787,965,765		760,958,498
	0	.4%	Preferred Stock		2,782,165		3,228,286
	0	.0%	Warrants		—		74
	0	.0%	Other Investment Company		250,173		250,173


	99	.4%	Total Investments		790,998,103		764,437,031
	0	.3%	Collateral Invested for Securities on Loan		2,686,618		2,686,618
	0	.3%	Other Assets and Liabilities, Net				1,542,671


	100	.0%	Net Assets				768,666,320


	Number		Value
Security	of Shares		($)

Common Stock 99.0% of net assets

Australia 7.6%


Banks 2.4%
Australia & New Zealand Banking Group Ltd.		158,928		4,076,538
Bank of Queensland Ltd.		16,940		132,175
Bendigo & Adelaide Bank Ltd.		28,952		226,797
Commonwealth Bank of Australia		97,328		5,505,946
National Australia Bank Ltd.		140,448		3,659,129
Westpac Banking Corp.		182,952		4,683,306

				18,283,891


Capital Goods 0.0%
CSR Ltd.		72,688		102,162
GWA Group Ltd.		53,900		107,507
Leighton Holdings Ltd.		2,772		45,807

				255,476


Commercial & Professional Services 0.1%
ALS Ltd.		7,700		65,650
Brambles Ltd.		112,864		794,313
Downer EDI Ltd. *		42,812		157,509

				1,017,472


Consumer Services 0.1%
Crown Ltd.		41,888		388,737
Echo Entertainment Group Ltd.		99,792		420,770
Flight Centre Ltd.		1,232		30,430
Tatts Group Ltd.		83,468		234,627

				1,074,564


Diversified Financials 0.2%
ASX Ltd.		13,860		436,297
Challenger Ltd.		28,952		108,312
IOOF Holdings Ltd.		26,180		165,311
Macquarie Group Ltd.		21,560		598,472

				1,308,392


Energy 0.6%
Aquila Resources Ltd. *		15,400		36,605
Caltex Australia Ltd.		1,540		24,859
Energy Resources of Australia Ltd. *		60,060		83,793
New Hope Corp., Ltd.		24,640		110,515
Oil Search Ltd.		95,788		744,420
Origin Energy Ltd.		71,294		876,777
Paladin Energy Ltd. *		51,436		69,901
Santos Ltd.		55,440		643,417
Whitehaven Coal Ltd.		9,548		32,266
Woodside Petroleum Ltd.		37,576		1,331,969
WorleyParsons Ltd.		16,324		447,393

				4,401,915


Food & Staples Retailing 0.6%
Metcash Ltd.		64,372		243,482
Wesfarmers Ltd.		57,596		2,054,719
Wesfarmers Ltd., Price Protected Shares		13,244		490,132
Woolworths Ltd.		69,916		2,140,183

				4,928,516


Food, Beverage & Tobacco 0.1%
Coca-Cola Amatil Ltd.		36,960		522,907
Goodman Fielder Ltd.		56,672		30,455
Treasury Wine Estates Ltd.		52,821		258,201

				811,563


Health Care Equipment & Services 0.1%
Ansell Ltd.		6,160		96,509
Cochlear Ltd.		3,080		214,536
Ramsay Health Care Ltd.		9,240		237,772
Sonic Healthcare Ltd.		19,404		268,912

				817,729


Insurance 0.4%
AMP Ltd.		175,605		809,396
Insurance Australia Group Ltd.		158,312		678,971
QBE Insurance Group Ltd.		59,444		800,464
Suncorp Group Ltd.		56,980		541,162

				2,829,993


Materials 1.6%
Adelaide Brighton Ltd.		34,804		105,027
Alumina Ltd.		72,072		55,117
Amcor Ltd.		114,884		894,013
Atlas Iron Ltd.		37,884		52,854
BHP Billiton Ltd.		186,956		6,142,134
Boral Ltd.		36,652		130,679
DuluxGroup Ltd.		21,252		72,038
Fortescue Metals Group Ltd.		140,756		514,943
Gunns Ltd. *(a)(b)		346,320		—
Iluka Resources Ltd.		37,268		354,334
Incitec Pivot Ltd.		119,504		359,389
James Hardie Industries SE CDI		10,780		93,358
Lynas Corp., Ltd. *		100,716		66,614
Newcrest Mining Ltd.		40,040		1,020,000
Nufarm Ltd.		15,708		94,966
Orica Ltd.		21,252		531,502

14 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
OZ Minerals Ltd.		16,840		108,597
Rio Tinto Ltd.		33,572		1,708,381
Sims Metal Management Ltd.		2,772		26,126

				12,330,072


Media 0.0%
Consolidated Media Holdings Ltd.		47,124		168,016


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
CSL Ltd.		34,188		1,569,782


Real Estate 0.7%
CFS Retail Property Trust Group		259,952		514,459
Commonwealth Property Office Fund		336,976		358,695
Dexus Property Group		379,764		374,806
Goodman Group		29,568		121,923
GPT Group		130,972		475,089
Lend Lease Group		43,469		381,396
Mirvac Group		199,276		278,021
Stockland		180,180		592,138
Westfield Group		136,752		1,400,544
Westfield Retail Trust		158,312		472,826

				4,969,897


Retailing 0.0%
Harvey Norman Holdings Ltd.		41,580		88,090


Software & Services 0.1%
Computershare Ltd.		39,424		342,239


Telecommunication Services 0.1%
Telstra Corp., Ltd.		226,688		901,942


Transportation 0.2%
Asciano Ltd.		62,216		288,051
Macquarie Atlas Roads Group *		57,288		89,990
Qantas Airways Ltd. *		45,584		54,175
QR National Ltd.		41,580		150,398
Sydney Airport		23,650		79,434
Toll Holdings Ltd.		15,400		73,687
Transurban Group		137,368		858,876

				1,594,611


Utilities 0.1%
AGL Energy Ltd.		45,276		709,811
APA Group		21,868		108,930
Envestra Ltd.		94,864		86,763
SP Ausnet		70,840		77,236

				982,740

				58,676,900

Austria 0.3%


Banks 0.1%
Erste Group Bank AG *		16,632		336,692
Raiffeisen Bank International AG		3,388		113,533

				450,225


Capital Goods 0.0%
Andritz AG		4,312		222,928
Strabag SE		3,388		76,315

				299,243


Energy 0.1%
OMV AG		11,088		368,628


Insurance 0.0%
Vienna Insurance Group AG		2,772		116,319


Materials 0.1%
Voestalpine AG		11,396		327,012


Real Estate 0.0%
Immofinanz AG *		56,728		182,625


Telecommunication Services 0.0%
Telekom Austria AG		22,792		182,316

				1,926,368

Belgium 0.9%


Banks 0.0%
Dexia S.A. *		253,176		63,826
KBC GROEP N.V.		8,624		187,897

				251,723


Capital Goods 0.0%
NV Bekaert S.A.		6,160		161,195


Diversified Financials 0.0%
Groupe Bruxelles Lambert S.A.		5,544		383,653


Food & Staples Retailing 0.0%
Colruyt S.A.		6,160		293,078
Delhaize Group		1,540		61,166

				354,244


Food, Beverage & Tobacco 0.5%
Anheuser-Busch InBev N.V.		48,048		4,044,497


Insurance 0.1%
Ageas		17,432		388,923


Materials 0.1%
Solvay S.A.		2,156		242,440
Umicore S.A.		6,776		322,172

				564,612


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
UCB S.A.		8,932		439,093


Telecommunication Services 0.1%
Belgacom S.A.		12,012		356,725
Telenet Group Holding N.V.		4,620		179,917

				536,642

				7,124,582

Canada 9.0%


Automobiles & Components 0.1%
Magna International, Inc.		14,000		603,496


Banks 2.4%
Bank of Montreal		30,800		1,798,344
Bank of Nova Scotia		61,600		3,261,489
Canadian Imperial Bank of Commerce		30,800		2,379,170
National Bank of Canada		5,300		397,480
Royal Bank of Canada		92,400		5,165,636
The Toronto-Dominion Bank		61,600		5,033,616

				18,035,735


Capital Goods 0.1%
Bombardier, Inc., B Shares		123,200		436,946
Finning International, Inc.		19,600		450,451

				887,397

See financial notes 15

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Consumer Services 0.0%
Tim Hortons, Inc.		5,000		252,318


Diversified Financials 0.1%
CI Financial Corp.		12,600		283,192
IGM Financial, Inc.		5,000		192,076

				475,268


Energy 2.3%
Cameco Corp.		5,700		124,067
Canadian Natural Resources Ltd.		67,900		2,063,455
Canadian Oil Sands Ltd.		30,800		656,667
Cenovus Energy, Inc.		45,440		1,487,270
Crescent Point Energy Corp.		300		12,461
Enbridge, Inc.		61,600		2,422,553
EnCana Corp.		51,700		1,143,126
Husky Energy, Inc.		30,800		813,656
Imperial Oil Ltd.		30,800		1,404,781
MEG Energy Corp. *		5,100		200,620
Nexen, Inc.		30,800		773,394
Pacific Rubiales Energy Corp.		15,000		366,317
Penn West Petroleum Ltd.		30,800		436,322
Suncor Energy, Inc.		95,300		2,975,318
Talisman Energy, Inc.		61,600		855,165
TransCanada Corp.		47,300		2,128,105

				17,863,277


Food & Staples Retailing 0.2%
Alimentation Couche-Tard, Inc., B Shares		6,000		304,849
Loblaw Cos. Ltd.		2,000		70,203
Shoppers Drug Mart Corp.		19,400		823,495

				1,198,547


Food, Beverage & Tobacco 0.1%
Saputo, Inc.		12,200		513,788


Insurance 0.6%
Great-West Lifeco, Inc.		30,800		679,451
Intact Financial Corp.		2,500		152,252
Manulife Financial Corp.		123,200		1,378,252
Power Corp. of Canada		30,800		733,757
Power Financial Corp.		30,800		775,267
Sun Life Financial, Inc.		30,800		718,151

				4,437,130


Materials 1.7%
Agnico-Eagle Mines Ltd.		5,200		250,871
Agrium, Inc.		5,000		491,513
Barrick Gold Corp.		61,600		2,372,616
Eldorado Gold Corp.		30,800		408,544
First Quantum Minerals Ltd.		32,100		617,702
Goldcorp, Inc.		56,300		2,308,822
IAMGOLD Corp.		12,100		158,047
Kinross Gold Corp.		61,600		546,807
Osisko Mining Corp. *		30,800		298,684
Potash Corp. of Saskatchewan, Inc.		58,300		2,384,342
Silver Wheaton Corp.		26,900		928,968
Teck Resources Ltd., Class B		41,700		1,151,044
Turquoise Hill Resources Ltd. *		33,300		267,250
Yamana Gold, Inc.		30,800		526,208

				12,711,418


Media 0.2%
Shaw Communications, Inc., B Shares		30,800		629,202
Thomson Reuters Corp.		30,800		873,267

				1,502,469


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Valeant Pharmaceuticals International, Inc. *		20,800		1,063,765


Real Estate 0.3%
Brookfield Asset Management, Inc., Class A		30,800		1,060,218
Brookfield Office Properties, Inc.		61,600		1,033,065

				2,093,283


Retailing 0.0%
Canadian Tire Corp. Ltd., Class A		4,600		332,211


Software & Services 0.1%
CGI Group, Inc., A Shares *		25,400		662,508


Technology Hardware & Equipment 0.0%
Research In Motion Ltd. *		32,200		214,373


Telecommunication Services 0.2%
BCE, Inc.		30,800		1,367,641
Rogers Communications, Inc., B Shares		10,900		439,269

				1,806,910


Transportation 0.4%
Canadian National Railway Co.		30,800		2,815,180
Canadian Pacific Railway Ltd.		7,110		587,042

				3,402,222


Utilities 0.1%
Canadian Utilities Ltd., Class A		4,000		275,543
Fortis, Inc.		11,300		372,029
TransAlta Corp.		11,000		165,973

				813,545

				68,869,660

Denmark 1.1%


Banks 0.1%
Danske Bank A/S *		67,280		1,172,264


Capital Goods 0.0%
FLSmidth & Co. A/S		4,312		242,972
Rockwool International A/S, B Shares		924		82,060

				325,032


Food, Beverage & Tobacco 0.1%
Carlsberg A/S, B Shares		8,316		721,663


Health Care Equipment & Services 0.1%
Coloplast A/S, B Shares		1,848		369,819
William Demant Holding A/S *		1,848		159,744

				529,563


Materials 0.1%
Novozymes A/S, B Shares		17,864		496,499


Pharmaceuticals, Biotechnology & Life Sciences 0.6%
Novo Nordisk A/S, B Shares		28,336		4,472,213


Transportation 0.1%
AP Moller - Maersk A/S, B Shares		70		458,733
DSV A/S		15,092		329,081

				787,814

				8,505,048

16 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Finland 0.6%


Automobiles & Components 0.0%
Nokian Renkaat Oyj		8,624		340,140


Capital Goods 0.2%
Kone Oyj, B Shares		14,784		906,604
Wartsila Oyj Abp		14,784		476,876

				1,383,480


Food & Staples Retailing 0.0%
Kesko Oyj, B Shares		3,696		98,068


Insurance 0.1%
Sampo Oyj, A Shares		33,880		974,118


Materials 0.1%
Stora Enso Oyj, R Shares		47,432		286,982
UPM-Kymmene Oyj		36,652		406,790

				693,772


Technology Hardware & Equipment 0.1%
Nokia Oyj		257,180		732,636


Utilities 0.1%
Fortum Oyj		28,336		524,690

				4,746,904

France 8.4%


Automobiles & Components 0.2%
Compagnie Generale des Etablissements Michelin, B Shares		9,660		694,665
Peugeot S.A. *		9,548		72,392
Renault S.A.		15,708		735,864
Valeo S.A.		4,928		233,593

				1,736,514


Banks 0.6%
BNP Paribas S.A.		68,684		2,991,640
Credit Agricole S.A. *		40,348		235,883
Natixis		20,944		57,367
Societe Generale *		52,360		1,389,295

				4,674,185


Capital Goods 1.1%
Alstom S.A.		17,864		637,472
Bouygues S.A.		16,940		422,253
Compagnie de Saint-Gobain		33,264		1,143,621
Eiffage S.A.		1,232		38,365
European Aeronautic Defence & Space Co., N.V.		21,868		835,759
Legrand S.A.		11,746		406,790
Rexel S.A.		6,468		126,574
Safran S.A.		12,628		443,385
Schneider Electric S.A.		33,264		2,105,269
Thales S.A. *		4,620		153,857
Vallourec S.A.		7,392		343,541
Vinci S.A.		36,344		1,584,624
Wendel		2,156		162,596
Zodiac Aerospace		2,464		235,487

				8,639,593


Commercial & Professional Services 0.2%
Bureau Veritas S.A.		4,620		427,154
Edenred		18,480		494,765
Societe BIC S.A.		2,772		298,991

				1,220,910


Consumer Durables & Apparel 0.6%
Christian Dior S.A.		4,312		616,360
Hermes International		2,464		711,090
LVMH Moet Hennessy Louis Vuitton S.A.		21,560		3,527,494

				4,854,944


Consumer Services 0.2%
Accor S.A.		18,480		587,243
Sodexo		11,704		927,514

				1,514,757


Diversified Financials 0.0%
Eurazeo		2,727		120,257


Energy 1.0%
Compagnie Generale De Geophysique-Veritas *		10,780		313,412
Technip S.A.		6,776		715,236
Total S.A.		132,132		6,612,962

				7,641,610


Food & Staples Retailing 0.2%
Carrefour S.A.		38,192		802,270
Casino Guichard Perrachon S.A.		4,004		356,119

				1,158,389


Food, Beverage & Tobacco 0.5%
Danone S.A.		40,348		2,520,046
Pernod-Ricard S.A.		15,092		1,629,741

				4,149,787


Health Care Equipment & Services 0.2%
bioMerieux		1,232		107,758
Essilor International S.A.		14,168		1,239,220

				1,346,978


Household & Personal Products 0.3%
L’Oreal S.A.		16,632		2,049,083


Insurance 0.3%
AXA S.A.		139,849		2,028,979
CNP Assurances		11,088		134,747
SCOR SE		10,780		265,581

				2,429,307


Materials 0.5%
Air Liquide S.A.		19,005		2,241,065
Arkema S.A.		3,080		262,757
Eramet		924		102,494
Imerys S.A.		2,464		122,030
Lafarge S.A.		13,860		662,395

				3,390,741


Media 0.4%
Eutelsat Communications		7,700		237,211
JC Decaux S.A.		3,388		77,468
Lagardere S.C.A.		8,008		225,552
Publicis Groupe		8,316		432,553
SES		20,636		532,199
Societe Television Francaise 1		9,856		92,307
Vivendi		81,472		1,601,022

				3,198,312

See financial notes 17

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Pharmaceuticals, Biotechnology & Life Sciences 0.8%
Sanofi		73,612		6,035,854


Real Estate 0.2%
Fonciere Des Regions		2,464		173,618
Gecina S.A.		1,540		147,898
Klepierre		5,544		179,317
Unibail-Rodamco SE		5,852		1,196,091

				1,696,924


Retailing 0.1%
PPR		6,160		964,373


Semiconductors & Semiconductor Equipment 0.0%
STMicroelectronics N.V.		20,328		120,866


Software & Services 0.1%
AtoS		4,004		234,940
Cap Gemini S.A.		8,932		329,038
Dassault Systemes S.A.		3,080		299,755

				863,733


Technology Hardware & Equipment 0.1%
Alcatel-Lucent *		232,848		265,622
Gemalto N.V.		4,928		391,402

				657,024


Telecommunication Services 0.2%
France Telecom S.A.		116,116		1,609,275


Transportation 0.1%
Aeroports de Paris		2,464		195,701
Bollore		616		142,870
Groupe Eurotunnel S.A. - Reg’d		26,180		196,679

				535,250


Utilities 0.5%
Electricite de France S.A.		20,944		427,414
GDF Suez		105,336		2,599,091
Suez Environnement Co.		25,256		283,651
Veolia Environnement		32,340		343,075

				3,653,231

				64,261,897

Germany 6.5%


Automobiles & Components 0.7%
Bayerische Motoren Werke AG		18,172		1,320,749
Continental AG		4,312		429,713
Daimler AG - Reg’d		65,604		3,225,060
Volkswagen AG		1,540		251,381

				5,226,903


Banks 0.1%
Commerzbank AG *		287,056		455,911


Capital Goods 0.8%
Bilfinger Berger SE		2,156		181,620
Brenntag AG		616		73,570
GEA Group AG		13,244		350,575
Hochtief AG *		4,004		188,053
MAN SE		8,932		826,170
Siemens AG - Reg’d		51,128		4,860,581

				6,480,569


Consumer Durables & Apparel 0.2%
Adidas AG		14,784		1,159,298
Puma SE		616		179,597

				1,338,895


Diversified Financials 0.3%
Deutsche Bank AG - Reg’d		54,208		1,932,007
Deutsche Boerse AG		13,860		715,069

				2,647,076


Food & Staples Retailing 0.1%
Metro AG		12,320		371,928


Food, Beverage & Tobacco 0.0%
Suedzucker AG		3,696		124,204


Health Care Equipment & Services 0.3%
Celesio AG		5,236		95,931
Fresenius Medical Care AG & Co. KGaA		14,476		1,046,100
Fresenius SE & Co. KGaA		8,624		922,040

				2,064,071


Household & Personal Products 0.1%
Beiersdorf AG		4,928		354,069
Henkel AG & Co. KGaA		8,932		555,396

				909,465


Insurance 0.6%
Allianz SE - Reg’d		24,948		2,744,375
Hannover Rueckversicherung AG - Reg’d		4,004		245,135
Muenchener Rueckversicherungs-Gesellschaft AG - Reg’d		12,628		1,873,501

				4,863,011


Materials 1.0%
BASF SE		54,208		4,223,427
HeidelbergCement AG		12,936		655,005
K+S AG		12,328		604,484
Lanxess AG		4,928		374,693
Linde AG		7,700		1,215,658
Salzgitter AG		3,080		113,597
ThyssenKrupp AG		24,640		491,970
Wacker Chemie AG		1,232		79,355

				7,758,189


Media 0.1%
Axel Springer AG		3,696		168,509
Kabel Deutschland Holding AG *		4,620		306,899

				475,408


Pharmaceuticals, Biotechnology & Life Sciences 0.6%
Bayer AG - Reg’d		53,284		4,142,033
Merck KGaA		4,004		458,978
QIAGEN N.V. *		14,476		260,841

				4,861,852


Retailing 0.0%
Fielmann AG		924		84,150


Semiconductors & Semiconductor Equipment 0.1%
Infineon Technologies AG		71,764		497,070


Software & Services 0.5%
SAP AG		58,520		3,865,995
Software AG		2,156		74,708

				3,940,703


Telecommunication Services 0.3%
Deutsche Telekom AG - Reg’d		177,408		2,121,062

18 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Transportation 0.2%
Deutsche Lufthansa AG - Reg’d		13,860		171,386
Deutsche Post AG - Reg’d		54,208		1,055,344
Fraport AG		2,772		154,771
Hamburger Hafen und Logistik AG		2,772		67,716

				1,449,217


Utilities 0.5%
E.ON AG		124,124		2,860,840
RWE AG		30,492		1,281,621

				4,142,461

				49,812,145

Greece 0.1%


Banks 0.1%
Alpha Bank AE *		38,141		64,903
Eurobank Ergasias S.A. *		37,009		31,629
National Bank of Greece S.A. ADR *		65,656		111,615

				208,147


Food, Beverage & Tobacco 0.0%
Coca Cola Hellenic Bottling Co. S.A. ADR *		9,856		180,759


Telecommunication Services 0.0%
Hellenic Telecommunications Organization S.A. *		38,631		125,632


Utilities 0.0%
Public Power Corp. S.A. *		14,592		48,558

				563,096

Hong Kong 4.2%


Automobiles & Components 0.0%
Geely Automobile Holdings Ltd. (c)		210,000		67,417
Xinyi Glass Holdings Ltd.		156,000		71,400

				138,817


Banks 0.4%
BOC Hong Kong Holdings Ltd.		308,000		974,878
Dah Sing Banking Group Ltd.		260,160		238,148
Hang Seng Bank Ltd.		61,600		876,795
The Bank of East Asia Ltd. (c)		184,800		673,083

				2,762,904


Capital Goods 0.4%
Hutchison Whampoa Ltd.		218,000		1,907,017
Jardine Matheson Holdings Ltd.		11,000		592,020
Jardine Strategic Holdings Ltd.		5,000		166,200
Johnson Electric Holdings Ltd.		322,000		188,893
Melco International Development Ltd. (c)		81,000		65,583
Shun Tak Holdings Ltd.		178,000		64,487

				2,984,200


Consumer Durables & Apparel 0.1%
Hutchison Harbour Ring Ltd.		814,000		65,068
Techtronic Industries Co., Ltd.		154,000		233,891
Texwinca Holdings Ltd.		12,000		9,762
Yue Yuen Industrial Holdings Ltd.		40,000		115,520

				424,241


Consumer Services 0.2%
Cafe de Coral Holdings Ltd.		10,000		27,913
China Travel International Investment Hong Kong Ltd.		616,000		105,628
Galaxy Entertainment Group Ltd. *(c)		140,000		398,001
Sands China Ltd.		123,200		435,221
SJM Holdings Ltd.		49,000		103,228
Wynn Macau Ltd.		80,000		183,594

				1,253,585


Diversified Financials 0.1%
First Pacific Co., Ltd.		12,000		12,872
Hong Kong Exchanges & Clearing Ltd. (c)		83,200		1,104,864

				1,117,736


Energy 0.0%
Brightoil Petroleum Holdings Ltd. (c)		308,000		55,594


Food, Beverage & Tobacco 0.2%
China Huiyuan Juice Group Ltd. *(c)		154,000		46,262
China Mengniu Dairy Co., Ltd.		74,000		222,775
China Yurun Food Group Ltd. *(c)		15,000		9,167
Tingyi Cayman Islands Holding Corp.		28,000		82,850
Want Want China Holdings Ltd.		616,000		762,430

				1,123,484


Household & Personal Products 0.1%
Hengan International Group Co., Ltd.		99,500		1,000,612


Insurance 0.3%
AIA Group Ltd.		753,400		2,588,636


Materials 0.1%
China Zhongwang Holdings Ltd. *		123,200		49,876
Fosun International		154,000		72,669
Hidili Industry International Development Ltd. (c)		125,000		26,753
Huabao International Holdings Ltd. (c)		175,000		89,798
Lee & Man Paper Manufacturing Ltd.		165,000		67,649
Mongolian Mining Corp. *		100,000		46,285
Nine Dragons Paper Holdings Ltd. (c)		62,000		27,897
Shougang Fushan Resources Group Ltd. (c)		140,000		36,822
United Co. RUSAL plc *(c)		20,000		10,830

				428,579


Media 0.0%
Television Broadcasts Ltd.		24,000		173,280


Real Estate 1.2%
Agile Property Holdings Ltd. (c)		30,000		34,424
Cheung Kong (Holdings) Ltd.		102,000		1,387,397
Evergrande Real Estate Group Ltd. (c)		145,000		55,336
Hang Lung Group Ltd.		50,000		312,006
Hang Lung Properties Ltd.		137,000		468,074
Henderson Land Development Co., Ltd.		70,000		430,492
Hongkong Land Holdings Ltd.		219,000		1,335,900
Hopewell Holdings Ltd.		154,000		493,396
Hysan Development Co., Ltd.		31,000		139,088
Kerry Properties Ltd.		43,000		204,293
Kowloon Development Co., Ltd.		25,000		24,625
New World Development Co., Ltd.		433,000		538,162
Sino Land Co., Ltd.		105,000		171,926

See financial notes 19

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Sun Hung Kai Properties Ltd.		120,000		1,556,422
Swire Pacific Ltd., Class A		52,000		614,446
Swire Properties Ltd.		36,000		103,040
The Link REIT		154,000		686,982
Wharf Holdings Ltd.		93,000		572,538
Wheelock & Co., Ltd.		30,000		114,295

				9,242,842


Retailing 0.3%
Belle International Holdings Ltd.		308,000		555,939
Chow Tai Fook Jewellery Group Ltd. (c)		30,000		35,894
Esprit Holdings Ltd. (c)		61,600		94,192
Golden Eagle Retail Group Ltd. (c)		20,000		36,667
GOME Electrical Appliances Holdings Ltd.		1,232,000		106,423
L’Occitane International S.A.		15,500		39,568
Li & Fung Ltd.		294,000		477,602
Lifestyle International Holdings Ltd.		154,000		336,740
Parkson Retail Group Ltd.		308,000		250,172

				1,933,197


Semiconductors & Semiconductor Equipment 0.0%
ASM Pacific Technology Ltd. (c)		24,400		271,802
GCL- Poly Energy Holdings Ltd. (c)		401,000		61,523

				333,325


Software & Services 0.2%
Tencent Holdings Ltd.		55,300		1,689,747


Technology Hardware & Equipment 0.1%
AAC Technologies Holdings, Inc.		68,000		231,014
Foxconn International Holdings Ltd. *		97,000		30,515
Kingboard Chemical Holdings Ltd.		47,000		102,771
VTech Holdings Ltd.		10,900		133,224

				497,524


Telecommunication Services 0.0%
PCCW Ltd.		308,000		118,336


Transportation 0.1%
Cathay Pacific Airways Ltd.		62,000		101,038
Hopewell Highway Infrastructure Ltd. (c)		1,781,000		902,412

				1,003,450


Utilities 0.4%
Cheung Kong Infrastructure Holdings Ltd.		22,000		133,028
CLP Holdings Ltd.		104,500		871,030
ENN Energy Holdings Ltd.		40,000		157,808
Hong Kong & China Gas Co., Ltd.		477,000		1,124,198
Power Assets Holdings Ltd.		92,500		749,541

				3,035,605

				31,905,694

Ireland 0.1%


Food, Beverage & Tobacco 0.0%
Kerry Group plc, A Shares		9,548		458,423


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Elan Corp. plc *		43,428		498,417


Transportation 0.0%
Ryanair Holdings plc *		11,021		58,068

				1,014,908

Israel 0.5%


Banks 0.1%
Bank Hapoalim B.M.		70,224		216,068
Bank Leumi Le-Israel *		60,060		137,661
First International Bank of Israel Ltd. *		8,316		85,691
Israel Discount Bank, A Shares *		56,370		58,914
Mizrahi Tefahot Bank Ltd. *		6,776		52,586

				550,920


Capital Goods 0.0%
Delek Group Ltd.		308		44,897
Elbit Systems Ltd.		924		28,707
Ormat Industries Ltd.		2,156		10,324

				83,928


Energy 0.0%
Avner Oil Exploration LP *		80,080		40,201
Delek Drilling - LP *		14,784		41,178
Isramco Negev 2 LP *		598,203		71,984
Oil Refineries Ltd. *		49,280		18,539
Ratio Oil Exploration 1992 LP *		480,480		33,039

				204,941


Food, Beverage & Tobacco 0.0%
Osem Investments Ltd.		4,004		49,070
Strauss Group Ltd. *		1,232		11,424

				60,494


Insurance 0.0%
Migdal Insurance & Financial Holding Ltd.		25,256		25,672


Materials 0.1%
Israel Chemicals Ltd.		31,416		338,905
The Israel Corp., Ltd.		196		112,457

				451,362


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Teva Pharmaceutical Industries Ltd.		58,362		2,327,879


Real Estate 0.0%
Azrieli Group		2,464		45,746
Gazit-Globe Ltd.		4,620		44,498
Jerusalem Economy Ltd. *		8,008		28,929

				119,173


Software & Services 0.0%
NICE Systems Ltd. *		3,080		96,685


Telecommunication Services 0.0%
Bezeq Israeli Telecommunication Corp., Ltd.		113,960		129,466

				4,050,520

Italy 2.0%


Automobiles & Components 0.1%
Fiat S.p.A. *		40,040		218,638
Pirelli & C. S.p.A.		29,619		326,679

				545,317

20 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Banks 0.4%
Banca Carige S.p.A.		65,912		53,256
Banca Monte dei Paschi di Siena S.p.A. *		308,000		86,964
Banco Popolare Societa Cooperativa *		92,400		135,105
Intesa Sanpaolo S.p.A.		749,364		1,180,717
UniCredit S.p.A. *		287,672		1,141,498
Unione di Banche Italiane S.c.p.A.		43,428		146,049

				2,743,589


Capital Goods 0.1%
Fiat Industrial S.p.A.		54,516		550,083
Finmeccanica S.p.A. *		7,084		31,503
Prysmian S.p.A.		2,156		36,172

				617,758


Consumer Durables & Apparel 0.0%
Luxottica Group S.p.A.		8,316		303,987


Consumer Services 0.0%
Autogrill S.p.A.		14,168		121,082


Diversified Financials 0.0%
EXOR S.p.A.		5,852		140,078
Mediobanca S.p.A.		36,036		169,066

				309,144


Energy 0.7%
Eni S.p.A.		162,008		3,598,199
Saipem S.p.A.		21,560		1,025,909
Tenaris S.A.		28,336		591,125

				5,215,233


Food, Beverage & Tobacco 0.0%
Parmalat S.p.A.		72,380		157,745


Insurance 0.2%
Assicurazioni Generali S.p.A.		101,948		1,457,252


Materials 0.0%
Buzzi Unicem S.p.A.		4,928		51,154


Media 0.0%
Mediaset S.p.A.		51,128		102,728


Telecommunication Services 0.1%
Telecom Italia S.p.A.		773,080		721,106
Telecom Italia S.p.A. - RSP		399,168		316,734

				1,037,840


Transportation 0.1%
Atlantia S.p.A.		31,262		440,162


Utilities 0.3%
A2A S.p.A.		78,232		41,732
Enel Green Power S.p.A.		31,108		51,250
Enel S.p.A.		470,624		1,554,240
Snam S.p.A.		105,028		442,705
Terna-Rete Elettrica Nazionale S.p.A.		96,404		335,631

				2,425,558

				15,528,549

Japan 16.2%


Automobiles & Components 1.9%
Aisin Seiki Co., Ltd.		2,200		69,962
Bridgestone Corp.		30,800		713,946
Denso Corp.		30,800		1,026,667
Honda Motor Co., Ltd.		92,400		2,917,149
Isuzu Motors Ltd.		36,000		183,448
Mitsubishi Motors Corp. *		616,000		574,304
NHK Spring Co., Ltd.		5,000		49,234
Nissan Motor Co., Ltd.		154,000		1,435,760
Nok Corp.		30,800		515,300
Sumitomo Rubber Industries Ltd.		30,800		375,658
Suzuki Motor Corp.		30,800		561,717
Toyota Motor Corp.		148,700		5,877,733
Yamaha Motor Co., Ltd.		30,800		266,697

				14,567,575


Banks 1.8%
Aozora Bank Ltd.		308,000		916,526
Fukuoka Financial Group, Inc.		27,000		106,207
Hokuhoku Financial Group, Inc.		308,000		464,164
Mitsubishi UFJ Financial Group, Inc.		862,400		3,921,001
Mizuho Financial Group, Inc.		1,395,700		2,245,954
Resona Holdings, Inc.		154,000		599,872
Sapporo Hokuyo Holdings, Inc.		61,600		157,344
Senshu Ikeda Holdings, Inc.		49,280		286,365
Shinsei Bank Ltd.		318,000		369,579
Sumitomo Mitsui Financial Group, Inc.		92,400		2,860,506
Sumitomo Mitsui Trust Holdings, Inc.		241,000		670,983
The 77 Bank Ltd.		28,000		106,922
The Awa Bank Ltd.		5,000		30,843
The Bank of Yokohama Ltd.		62,000		287,433
The Chiba Bank Ltd.		45,000		260,345
The Hokkoku Bank Ltd.		2,000		7,637
The Joyo Bank Ltd.		37,000		177,676
The Juroku Bank Ltd.		20,000		66,411
The Nanto Bank Ltd.		4,000		18,442
The San-In Godo Bank Ltd.		2,000		14,381
The Shiga Bank Ltd.		8,000		48,633
The Shizuoka Bank Ltd.		20,000		207,663
Yamaguchi Financial Group, Inc.		9,000		75,172

				13,900,059


Capital Goods 2.1%
Chiyoda Corp.		1,000		13,155
COMSYS Holdings Corp.		30,800		393,359
Daikin Industries Ltd.		30,800		820,153
FANUC Corp.		12,090		1,974,854
Hitachi Cable Ltd. *		7,000		9,655
Hoshizaki Electric Co., Ltd.		1,600		44,751
IHI Corp.		308,000		660,843
ITOCHU Corp.		61,600		624,654
JTEKT Corp.		30,800		241,129
Kandenko Co., Ltd.		2,000		9,757
Kawasaki Heavy Industries Ltd.		308,000		652,976
Keihan Electric Railway Co., Ltd.		8,000		38,825
Komatsu Ltd.		61,600		1,211,545
LIXIL Group Corp.		30,800		661,236
Mitsubishi Corp.		92,400		1,698,130
Mitsubishi Electric Corp.		34,000		276,169
Mitsubishi Heavy Industries Ltd.		308,000		1,274,483
Mitsui & Co., Ltd.		92,400		1,289,824
SMC Corp.		2,000		313,921
Sojitz Corp.		154,000		206,513
Sumitomo Corp.		92,400		1,222,559
Sumitomo Electric Industries Ltd.		61,600		692,312
The Japan Steel Works Ltd.		1,000		5,338
THK Co., Ltd.		30,800		480,685

See financial notes 21

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Toyota Tsusho Corp.		30,800		628,588
Ushio, Inc.		30,800		361,890

				15,807,304


Commercial & Professional Services 0.2%
Kokuyo Co., Ltd.		9,300		71,858
Nissha Printing Co., Ltd. *		3,200		30,692
Secom Co., Ltd.		30,800		1,555,735

				1,658,285


Consumer Durables & Apparel 0.7%
Haseko Corp. *		164,000		102,631
Makita Corp.		25,400		864,184
NAMCO BANDAI Holdings, Inc.		30,800		487,765
Nikon Corp.		30,800		846,508
Panasonic Corp.		184,800		1,255,602
Sega Sammy Holdings, Inc.		30,800		636,061
Sony Corp.		72,600		816,866
Sumitomo Forestry Co., Ltd.		30,800		255,290
TSI Holdings Co., Ltd.		33,800		215,405

				5,480,312


Consumer Services 0.0%
Benesse Holdings, Inc.		2,000		98,978
Oriental Land Co., Ltd.		2,000		269,732

				368,710


Diversified Financials 0.4%
Acom Co., Ltd. *		400		9,241
Credit Saison Co., Ltd.		30,800		720,240
Daiwa Securities Group, Inc.		130,000		469,859
Mitsubishi UFJ Lease & Finance Co., Ltd.		6,160		264,731
Nomura Holdings, Inc.		257,300		847,808
ORIX Corp.		6,160		569,584

				2,881,463


Energy 0.3%
Cosmo Oil Co., Ltd.		30,000		57,471
Idemitsu Kosan Co., Ltd.		1,000		80,332
Inpex Corp.		155		880,907
JX Holdings, Inc.		126,600		654,827
Showa Shell Sekiyu K.K.		30,800		158,524
TonenGeneral Sekiyu K.K.		15,000		126,820

				1,958,881


Food & Staples Retailing 0.3%
Aeon Co., Ltd.		61,600		708,046
Seven & i Holdings Co., Ltd.		61,600		1,868,455

				2,576,501


Food, Beverage & Tobacco 0.7%
Ajinomoto Co., Inc.		27,000		411,379
Asahi Group Holdings Ltd.		30,800		745,415
Japan Tobacco, Inc.		61,600		1,857,441
Kagome Co., Ltd.		30,800		698,212
Kewpie Corp.		30,800		476,357
Kirin Holdings Co., Ltd.		35,000		435,824
Nissin Foods Holdings Co., Ltd.		6,000		231,801
Sapporo Holdings Ltd.		10,000		28,480
Yakult Honsha Co., Ltd.		9,000		386,207

				5,271,116


Health Care Equipment & Services 0.2%
Alfresa Holdings Corp.		1,900		93,787
M3, Inc.		32		169,400
Medipal Holdings Corp.		14,400		206,161
Miraca Holdings, Inc.		2,100		94,004
Olympus Corp. *		22,300		440,019
Suzuken Co., Ltd.		2,100		71,099
Terumo Corp.		6,100		269,942

				1,344,412


Household & Personal Products 0.2%
Kao Corp.		30,800		929,900
Kobayashi Pharmaceutical Co., Ltd.		1,300		69,483
Lion Corp.		11,000		64,061
Shiseido Co., Ltd.		14,200		202,210
Unicharm Corp.		6,200		360,677

				1,626,331


Insurance 0.5%
Sony Financial Holdings, Inc.		55,200		908,015
T&D Holdings, Inc.		61,600		623,081
The Dai-ichi Life Insurance Co., Ltd.		449		457,028
Tokio Marine Holdings, Inc.		61,600		1,474,309

				3,462,433


Materials 1.1%
Asahi Kasei Corp.		60,000		311,877
Hitachi Chemical Co., Ltd.		30,800		440,562
JFE Holdings, Inc.		33,900		427,755
JSR Corp.		30,800		523,167
Kobe Steel Ltd.		308,000		236,015
Kuraray Co. Ltd.		30,800		355,203
Mitsubishi Chemical Holdings Corp.		154,000		595,939
Nippon Paper Group, Inc. (c)		5,200		61,430
Nippon Steel Corp.		308,000		593,972
Nissan Chemical Industries Ltd.		11,200		124,302
Nitto Denko Corp.		20,100		927,989
Shin-Etsu Chemical Co., Ltd.		30,800		1,646,207
Showa Denko K.K.		308,000		519,234
Sumitomo Chemical Co., Ltd.		20,000		52,107
Sumitomo Metal Industries Ltd.		308,000		436,628
Sumitomo Metal Mining Co., Ltd.		22,000		227,024
Sumitomo Osaka Cement Co., Ltd.		37,000		120,026
Taiheiyo Cement Corp.		32,000		69,068
Tokyo Steel Manufacturing Co., Ltd.		45,200		147,203
Toray Industries, Inc.		50,000		305,236

				8,120,944


Media 0.2%
Dentsu, Inc.		28,400		721,063
Hakuhodo DY Holdings, Inc.		6,160		403,586
SKY Perfect JSAT Holdings, Inc.		131		58,557

				1,183,206


Pharmaceuticals, Biotechnology & Life Sciences 0.9%
Astellas Pharma, Inc.		30,800		1,502,631
Chugai Pharmaceutical Co., Ltd.		30,800		613,640
Daiichi Sankyo Co., Ltd.		30,800		507,433
Dainippon Sumitomo Pharma Co., Ltd.		30,800		339,862
Eisai Co., Ltd.		30,800		1,406,258
Kissei Pharmaceutical Co., Ltd.		1,700		29,592
Otsuka Holdings Co., Ltd.		30,800		939,341
Shionogi & Co., Ltd.		30,800		443,709
Takeda Pharmaceutical Co., Ltd.		30,800		1,443,627

				7,226,093

22 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Real Estate 0.5%
Aeon Mall Co., Ltd.		7,500		175,000
Daito Trust Construction Co., Ltd.		3,800		370,779
Daiwa House Industry Co., Ltd.		22,000		306,258
Mitsubishi Estate Co., Ltd.		54,000		946,896
Mitsui Fudosan Co., Ltd.		45,000		835,057
Nomura Real Estate Holdings, Inc.		6,500		108,167
NTT Urban Development Corp.		308		233,262
Sumitomo Real Estate Sales Co., Ltd.		3,080		149,083
Sumitomo Realty & Development Co., Ltd.		30,000		731,418
Tokyo Tatemono Co., Ltd. *		1,000		3,308
Tokyu Land Corp.		32,000		156,935

				4,016,163


Retailing 0.4%
Aoyama Trading Co., Ltd.		4,100		80,481
DeNA Co., Ltd.		1,900		52,899
Fast Retailing Co., Ltd.		3,000		700,000
Isetan Mitsukoshi Holdings Ltd.		61,600		641,962
J Front Retailing Co., Ltd.		34,000		169,783
Komeri Co., Ltd.		1,000		25,249
Marui Group Co., Ltd.		30,800		225,395
Point, Inc.		3,080		110,376
USS Co., Ltd.		3,080		330,815
Yamada Denki Co., Ltd.		12,320		593,185

				2,930,145


Semiconductors & Semiconductor Equipment 0.1%
Tokyo Electron Ltd.		19,400		910,536
Ulvac, Inc. *		9,600		77,119

				987,655


Software & Services 0.3%
Gree, Inc. (c)		1,700		28,268
KONAMI Corp.		24,500		562,280
Nintendo Co., Ltd.		4,500		503,448
Nomura Research Institute Ltd.		30,800		643,142
NTT Data Corp.		100		298,084
Trend Micro, Inc.		2,800		77,599
Yahoo! Japan Corp.		924		317,795

				2,430,616


Technology Hardware & Equipment 1.4%
Alps Electric Co., Ltd.		30,800		164,031
Brother Industries Ltd.		30,800		311,934
Canon, Inc.		83,900		2,780,594
FUJIFILM Holdings Corp.		30,800		510,973
Fujitsu Ltd.		71,000		288,353
Hamamatsu Photonics K.K.		2,100		74,264
Hitachi Ltd.		308,000		1,766,181
Hoya Corp.		30,800		694,672
Keyence Corp.		2,100		553,027
Konica Minolta Holdings, Inc.		10,000		73,946
Kyocera Corp.		10,500		901,149
Murata Manufacturing Co., Ltd.		28,200		1,390,192
NEC Corp. *		82,000		117,292
Nippon Electric Glass Co., Ltd.		10,000		47,510
OMRON Corp.		30,800		601,052
Ricoh Co., Ltd.		15,000		118,008
Seiko Epson Corp.		5,200		33,338
Taiyo Yuden Co., Ltd.		3,300		28,617
Toshiba Corp.		125,000		399,106
Yokogawa Electric Corp.		10,000		116,603

				10,970,842


Telecommunication Services 0.8%
KDDI Corp.		174		1,244,445
Nippon Telegraph & Telephone Corp.		30,800		1,421,992
NTT DoCoMo, Inc.		1,024		1,741,977
SOFTBANK Corp.		44,700		1,821,111

				6,229,525


Transportation 0.8%
All Nippon Airways Co., Ltd. (c)		308,000		680,511
Central Japan Railway Co.		152		1,321,992
East Japan Railway Co.		30,800		2,061,200
Fukuyama Transporting Co., Ltd.		2,000		11,162
Kawasaki Kisen Kaisha Ltd. *		6,000		8,046
Kintetsu Corp.		7,000		28,787
Nishi-Nippon Railroad Co., Ltd.		15,000		63,985
Sotetsu Holdings, Inc.		4,000		13,742
Tobu Railway Co., Ltd.		10,000		55,556
Tokyu Corp.		192,000		944,061
West Japan Railway Co.		30,800		1,347,254

				6,536,296


Utilities 0.4%
Chubu Electric Power Co., Inc.		37,000		439,464
Electric Power Development Co., Ltd.		11,000		262,848
Hokkaido Electric Power Co., Inc.		3,000		23,065
Hokuriku Electric Power Co.		2,000		23,091
Kyushu Electric Power Co., Inc.		30,800		233,262
Osaka Gas Co., Ltd.		92,000		401,839
Shikoku Electric Power Co., Inc.		8,500		103,238
The Chugoku Electric Power Co., Inc.		31,400		396,209
The Kansai Electric Power Co., Inc.		31,600		235,688
The Tokyo Electric Power Co., Inc. *		92,400		154,590
Toho Gas Co., Ltd.		22,000		143,576
Tohoku Electric Power Co., Inc. *		17,600		122,953
Tokyo Gas Co., Ltd.		100,000		551,724

				3,091,547

				124,626,414

Netherlands 2.2%


Capital Goods 0.2%
Koninklijke Boskalis Westminster N.V.		2,464		83,455
Koninklijke Philips Electronics N.V.		67,144		1,547,128

				1,630,583


Commercial & Professional Services 0.0%
Randstad Holding N.V.		8,932		291,039


Diversified Financials 0.2%
ING Groep N.V. CVA *		223,916		1,716,621


Energy 0.1%
Fugro N.V. CVA		5,236		319,241
SBM Offshore N.V. *		10,164		144,004

				463,245


Food & Staples Retailing 0.1%
Koninklijke Ahold N.V.		73,920		915,922


Food, Beverage & Tobacco 0.7%
DE Master Blenders 1753 N.V. *		47,740		563,490
Heineken Holding N.V.		6,776		314,229
Heineken N.V.		16,940		941,128

See financial notes 23

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Unilever N.V. CVA		94,556		3,305,079

				5,123,926


Insurance 0.1%
AEGON N.V.		124,124		638,819


Materials 0.3%
Akzo Nobel N.V.		14,168		818,289
ArcelorMittal		77,616		1,159,833
Koninklijke DSM N.V.		11,396		535,586

				2,513,708


Media 0.1%
Reed Elsevier N.V.		42,812		560,151
Wolters Kluwer N.V.		18,480		333,105

				893,256


Real Estate 0.0%
Corio N.V.		4,997		213,212


Semiconductors & Semiconductor Equipment 0.2%
ASML Holding N.V.		26,180		1,486,150


Telecommunication Services 0.1%
Koninklijke (Royal) KPN N.V.		97,944		841,986


Transportation 0.1%
Koninklijke Vopak N.V.		1,540		99,000
PostNL N.V.		21,413		76,898
TNT Express N.V.		27,720		312,792

				488,690

				17,217,157

New Zealand 0.1%


Consumer Services 0.0%
SKYCITY Entertainment Group Ltd.		57,288		174,435


Health Care Equipment & Services 0.0%
Fisher & Paykel Healthcare Corp., Ltd.		19,096		32,985


Real Estate 0.0%
Kiwi Income Property Trust		157,080		138,187


Telecommunication Services 0.0%
Chorus Ltd. *		28,644		77,552
Telecom Corp. of New Zealand Ltd.		122,584		242,271

				319,823


Transportation 0.1%
Auckland International Airport Ltd.		178,640		373,150

				1,038,580

Norway 0.9%


Banks 0.1%
DnB A.S.A.		71,456		821,574


Capital Goods 0.1%
Orkla A.S.A.		61,600		455,367


Energy 0.5%
Aker Solutions A.S.A.		6,468		118,138
Kvaerner A.S.A.		16,016		39,401
Seadrill Ltd.		21,560		886,965
Statoil A.S.A.		86,240		2,215,367
Subsea 7 S.A.		12,628		290,384

				3,550,255


Insurance 0.0%
Gjensidige Forsikring A.S.A.		6,160		79,120
Storebrand A.S.A. *		23,657		99,937

				179,057


Materials 0.1%
Norsk Hydro A.S.A.		61,689		264,435
Yara International A.S.A.		15,400		753,982

				1,018,417


Telecommunication Services 0.1%
Telenor A.S.A.		55,132		1,007,938

				7,032,608

Portugal 0.2%


Banks 0.0%
Banco Comercial Portugues S.A. - Reg’d *		322,784		35,398
Banco Espirito Santo S.A. - Reg’d *		22,019		15,376

				50,774


Energy 0.0%
Galp Energia, SGPS, S.A.		20,944		315,347


Food & Staples Retailing 0.1%
Jeronimo Martins, SGPS, S.A.		20,944		350,591


Telecommunication Services 0.0%
Portugal Telecom, SGPS, S.A. - Reg’d		35,112		171,723


Utilities 0.1%
EDP - Energias de Portugal S.A.		217,756		531,945

				1,420,380

Republic of Korea 5.0%


Automobiles & Components 0.7%
Halla Climate Control Corp.		250		5,310
Hankook Tire Co., Ltd. (a)(b)		5,820		213,385
Hyundai Mobis		4,316		1,169,699
Hyundai Motor Co.		11,262		2,387,142
Hyundai Wia Corp.		322		51,083
Kia Motors Corp.		21,068		1,375,908

				5,202,527


Banks 0.3%
BS Financial Group, Inc.		4,800		49,919
DGB Financial Group, Inc.		1,200		13,855
Hana Financial Group, Inc.		8,880		265,314
Industrial Bank of Korea		3,300		35,047
KB Financial Group, Inc. ADR		32,360		1,047,170
Shinhan Financial Group Co., Ltd. ADR		18,236		1,146,315
Woori Finance Holdings Co., Ltd.		7,200		68,534

				2,626,154


Capital Goods 0.6%
CJ Corp.		1,000		71,918
Daelim Industrial Co., Ltd.		1,800		140,875
Daewoo Engineering & Construction Co., Ltd. *		7,000		61,694
Daewoo International Corp.		1,690		51,164
Daewoo Shipbuilding & Marine Engineering Co., Ltd.		4,930		105,802
Doosan Corp.		1,746		208,512

24 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Doosan Heavy Industries & Construction Co., Ltd.		2,150		112,178
Doosan Infracore Co., Ltd. *		4,610		71,915
GS Engineering & Construction Corp.		2,000		123,741
Hyundai Development Co.		4,000		73,505
Hyundai Engineering & Construction Co., Ltd.		5,409		302,241
Hyundai Heavy Industries Co., Ltd.		4,038		823,882
Hyundai Mipo Dockyard Co., Ltd.		620		66,938
KCC Corp.		300		74,827
LG Corp.		5,536		305,435
LS Corp.		1,683		130,235
Samsung C&T Corp.		10,000		568,470
Samsung Engineering Co., Ltd.		2,432		412,612
Samsung Heavy Industries Co., Ltd.		14,240		466,247
Samsung Techwin Co., Ltd.		3,201		200,869
SK Holdings Co., Ltd.		2,020		297,314
STX Offshore & Shipbuilding Co., Ltd.		3,100		26,010

				4,696,384


Consumer Durables & Apparel 0.1%
LG Electronics, Inc.		6,330		392,757
Woongjin Coway Co., Ltd.		4,500		155,668

				548,425


Consumer Services 0.0%
Kangwon Land, Inc.		7,430		151,923


Diversified Financials 0.1%
Daewoo Securities Co., Ltd.		20,008		198,383
Hyundai Securities Co., Ltd.		9,000		67,265
Korea Investment Holdings Co., Ltd.		2,650		89,102
Samsung Card Co., Ltd.		2,960		93,786
Samsung Securities Co., Ltd.		3,836		164,140
Woori Investment & Securities Co., Ltd.		5,000		48,915

				661,591


Energy 0.2%
GS Holdings		2,180		124,887
S-Oil Corp.		6,110		554,659
SK Innovation Co., Ltd.		4,815		693,844

				1,373,390


Food & Staples Retailing 0.0%
E-Mart Co., Ltd.		1,147		249,694
Shinsegae Co., Ltd.		352		70,113

				319,807


Food, Beverage & Tobacco 0.1%
CJ CheilJedang Corp.		500		134,846
KT&G Corp.		3,506		265,432
Lotte Chilsung Beverage Co., Ltd.		55		67,767
Lotte Confectionery Co., Ltd.		50		71,565
NongShim Co., Ltd.		270		59,491
ORION Corp.		264		214,062

				813,163


Household & Personal Products 0.1%
Amorepacific Corp.		203		209,150
AMOREPACIFIC Group		700		267,754
LG Household & Health Care Ltd.		620		339,883

				816,787


Insurance 0.2%
Dongbu Insurance Co., Ltd.		3,650		149,104
Hyundai Marine & Fire Insurance Co., Ltd.		6,000		172,921
Korea Life Insurance Co., Ltd.		20,000		125,151
Samsung Fire & Marine Insurance Co., Ltd.		2,930		604,270
Samsung Life Insurance Co., Ltd.		5,624		478,322

				1,529,768


Materials 0.6%
Cheil Industries, Inc.		3,550		323,829
Hanwha Chemical Corp.		5,040		92,838
Hanwha Corp.		4,090		118,775
Honam Petrochemical Corp.		1,026		211,598
Hyosung Corp.		1,350		72,222
Hyundai Steel Co.		2,037		150,088
Korea Zinc Co., Ltd.		611		220,248
Kumho Petro Chemical Co., Ltd.		828		82,098
LG Chem Ltd.		3,595		953,703
OCI Co., Ltd.		1,338		224,056
POSCO ADR		24,212		1,973,278

				4,422,733


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Celltrion, Inc.		4,633		123,111
Yuhan Corp.		434		51,256

				174,367


Retailing 0.1%
Hyundai Department Store Co., Ltd.		1,016		127,601
Lotte Midopa Co., Ltd.		5,500		64,471
Lotte Shopping Co., Ltd.		582		163,886

				355,958


Semiconductors & Semiconductor Equipment 1.4%
Samsung Electronics Co., Ltd. GDR - Reg’d		17,950		9,836,600
SK Hynix, Inc. *		33,220		620,702

				10,457,302


Software & Services 0.1%
Daum Communications Corp.		376		37,546
NCsoft Corp.		1,050		233,667
NHN Corp.		3,259		745,366
SK C&C Co. Ltd.		1,000		96,508

				1,113,087


Technology Hardware & Equipment 0.1%
LG Display Co., Ltd. ADR *		46,604		548,063
Samsung Electro-Mechanics Co., Ltd.		2,664		228,452
Samsung SDI Co., Ltd.		1,000		126,033

				902,548


Telecommunication Services 0.1%
KT Corp. ADR		21,252		321,118
LG Uplus Corp.		12,400		83,058
SK Telecom Co., Ltd. ADR		34,804		499,089

				903,265


Transportation 0.1%
CJ Korea Express Co., Ltd. *		1,164		95,921
Hanjin Shipping Co., Ltd. *		4,500		57,905
Hyundai Glovis Co., Ltd.		500		100,474
Hyundai Merchant Marine Co., Ltd. *		3,567		86,139
Korean Air Lines Co., Ltd. *		2,299		96,245

				436,684

See financial notes 25

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Utilities 0.1%
Korea Electric Power Corp. ADR *		75,072		804,021

				38,309,884

Singapore 1.7%


Banks 0.5%
DBS Group Holdings Ltd.		61,000		706,630
Oversea-Chinese Banking Corp., Ltd.		308,000		2,293,827
United Overseas Bank Ltd.		30,000		459,115

				3,459,572


Capital Goods 0.3%
Cosco Corp. Singapore Ltd. (c)		28,000		21,773
Fraser and Neave Ltd.		39,000		256,686
Keppel Corp., Ltd.		48,000		430,592
Noble Group Ltd.		358,181		344,571
Singapore Technologies Engineering Ltd.		308,000		841,975
Yangzijiang Shipbuilding Holdings Ltd.		355,000		280,323

				2,175,920


Consumer Services 0.1%
Genting Singapore plc		308,000		337,037


Diversified Financials 0.0%
Singapore Exchange Ltd.		8,000		45,150


Food & Staples Retailing 0.0%
Olam International Ltd. (c)		154,772		238,225


Food, Beverage & Tobacco 0.1%
Golden Agri-Resources Ltd.		616,000		350,617
Indofood Agri Resources Ltd. (c)		37,000		41,378
Wilmar International Ltd.		266,000		667,453

				1,059,448


Media 0.0%
Singapore Press Holdings Ltd. (c)		24,000		76,383


Real Estate 0.3%
CapitaCommercial Trust		308,000		350,617
Capitaland Ltd.		308,000		743,210
CapitaMall Trust		308,000		488,889
Keppel Land Ltd.		33,000		89,682
Wing Tai Holdings Ltd.		443,000		543,362
Yanlord Land Group Ltd. *(c)		388,000		362,370

				2,578,130


Retailing 0.1%
Jardine Cycle & Carriage Ltd.		8,000		296,873


Technology Hardware & Equipment 0.0%
Venture Corp., Ltd.		23,000		143,082


Telecommunication Services 0.2%
Singapore Telecommunications Ltd.		616,000		1,674,074


Transportation 0.1%
ComfortDelGro Corp., Ltd.		308,000		413,580
Hutchison Port Holdings Trust		95,000		66,500
Neptune Orient Lines Ltd. *(c)		335,000		292,729
Singapore Post Ltd.		308,000		266,667

				1,039,476

				13,123,370

Spain 2.4%


Banks 0.9%
Banco Bilbao Vizcaya Argentaria S.A.		298,144		2,282,297
Banco de Sabadell S.A.		206,360		598,269
Banco Popular Espanol S.A. (c)		73,961		169,022
Banco Santander S.A.		563,024		4,023,952
Bankinter S.A.		21,252		80,204

				7,153,744


Capital Goods 0.0%
ACS, Actividades de Construccion y Servicios S.A.		12,320		245,209
Zardoya Otis S.A.		9,286		107,803

				353,012


Diversified Financials 0.1%
CaixaBank (c)		82,544		315,470
Corporacion Financiera Alba S.A.		2,464		80,038

				395,508


Energy 0.2%
Repsol S.A.		73,612		1,357,951


Food & Staples Retailing 0.0%
Distribuidora Internacional de Alimentacion S.A. *		33,880		180,261


Insurance 0.0%
Mapfre S.A.		45,584		110,895


Materials 0.0%
Acerinox S.A.		14,784		158,660


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Grifols S.A. *		14,784		417,429


Retailing 0.2%
Inditex S.A.		15,708		1,750,512


Software & Services 0.1%
Amadeus IT Holding S.A.		24,024		537,813


Telecommunication Services 0.4%
Telefonica S.A.		265,496		3,359,963


Transportation 0.1%
Abertis Infraestructuras S.A.		23,100		314,324
Ferrovial S.A.		31,108		368,001

				682,325


Utilities 0.3%
Enagas S.A.		13,860		257,952
Gas Natural SDG S.A.		32,956		407,352
Iberdrola S.A.		293,524		1,166,939
Red Electrica Corporacion S.A.	��	1,540		66,815

				1,899,058

				18,357,131

Sweden 2.7%


Banks 0.6%
Nordea Bank AB		196,504		1,817,654
Skandinaviska Enskilda Banken AB, A Shares		131,516		1,006,979
Svenska Handelsbanken AB, A Shares		36,652		1,278,072

26 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Swedbank AB, A Shares		41,580		727,783

				4,830,488


Capital Goods 0.9%
Alfa Laval AB		21,868		374,504
Assa Abloy AB, B Shares		29,568		904,234
Atlas Copco AB, A Shares		44,660		999,541
Atlas Copco AB, B Shares		26,796		530,930
Hexagon AB, B Shares		15,092		303,132
Sandvik AB		57,288		766,534
Scania AB, B Shares		26,488		456,024
Skanska AB, B Shares		26,796		412,766
SKF AB, B Shares		32,956		685,832
Volvo AB, B Shares		90,552		1,148,028

				6,581,525


Commercial & Professional Services 0.0%
Securitas AB, B Shares		30,492		227,298


Consumer Durables & Apparel 0.0%
Electrolux AB, Series B		12,320		298,434


Diversified Financials 0.2%
Industrivarden AB, A Shares		17,864		251,302
Investment AB Kinnevik, B Shares		8,624		174,391
Investor AB, B Shares		36,344		753,044
Ratos AB, B Shares		3,080		27,606

				1,206,343


Energy 0.0%
Lundin Petroleum AB *		10,780		243,385


Food, Beverage & Tobacco 0.1%
Swedish Match AB		23,716		985,652


Health Care Equipment & Services 0.1%
Elekta AB, B Shares		2,156		109,889
Getinge AB, B Shares		12,936		385,444

				495,333


Materials 0.2%
Boliden AB		11,704		171,981
Holmen AB, B Shares		9,240		238,617
SSAB AB, A Shares		7,084		53,545
Svenska Cellulosa AB, B Shares		35,420		633,336

				1,097,479


Media 0.0%
Modern Times Group, B Shares		2,464		112,564


Retailing 0.2%
Hennes & Mauritz AB, B Shares		37,268		1,348,518


Technology Hardware & Equipment 0.2%
Telefonaktiebolaget LM Ericsson, B Shares		184,184		1,724,556


Telecommunication Services 0.2%
Tele2 AB, B Shares		28,028		493,119
TeliaSonera AB		132,440		915,448

				1,408,567

				20,560,142

Switzerland 7.2%


Banks 0.0%
Banque Cantonale Vaudoise - Reg’d		308		163,764


Capital Goods 0.6%
ABB Ltd. - Reg’d *		158,004		2,755,035
Geberit AG - Reg’d *		3,696		781,025
Schindler Holding AG		3,696		436,490
Schindler Holding AG - Reg’d		5,236		619,460
Sulzer AG - Reg’d		924		125,224

				4,717,234


Commercial & Professional Services 0.1%
Adecco S.A. - Reg’d *		10,472		476,000
SGS S.A. - Reg’d		308		622,725

				1,098,725


Consumer Durables & Apparel 0.4%
Compagnie Financiere Richemont S.A., A Shares		31,108		1,912,002
Swatch Group AG		2,156		884,490
Swatch Group AG - Reg’d		5,236		370,741

				3,167,233


Diversified Financials 0.7%
Credit Suisse Group AG - Reg’d *		73,304		1,418,986
GAM Holding AG *		11,704		138,836
Julius Baer Group Ltd. *		16,632		547,707
Pargesa Holding S.A.		1,540		98,129
UBS AG - Reg’d *		251,020		2,814,291

				5,017,949


Energy 0.1%
Transocean Ltd.		21,252		1,030,698


Food, Beverage & Tobacco 1.8%
Aryzta AG *		5,852		288,423
Nestle S.A. - Reg’d		212,828		13,259,859

				13,548,282


Health Care Equipment & Services 0.1%
Nobel Biocare Holding AG - Reg’d *		7,084		67,300
Sonova Holding AG - Reg’d *		3,388		314,758
Straumann Holding AG - Reg’d		616		73,395

				455,453


Insurance 0.5%
Baloise Holding AG - Reg’d		2,772		204,423
Swiss Re AG *		23,408		1,470,679
Zurich Insurance Group AG *		8,624		2,077,690

				3,752,792


Materials 0.5%
Givaudan S.A. - Reg’d *		924		873,949
Holcim Ltd. - Reg’d *		13,244		814,021
Syngenta AG - Reg’d		7,392		2,497,885

				4,185,855


Pharmaceuticals, Biotechnology & Life Sciences 2.2%
Actelion Ltd. - Reg’d *		924		43,765
Novartis AG - Reg’d		162,008		9,566,397
Roche Holding AG		41,580		7,586,190

				17,196,352


Real Estate 0.0%
Swiss Prime Site AG - Reg’d *		1,848		152,383


Telecommunication Services 0.1%
Swisscom AG - Reg’d		1,848		743,778

See financial notes 27

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Transportation 0.1%
Kuehne & Nagel International AG - Reg’d		3,080		351,455

				55,581,953

United Kingdom 19.1%


Automobiles & Components 0.0%
GKN plc		101,332		343,630


Banks 2.2%
Barclays plc		742,280		2,160,519
HSBC Holdings plc		1,077,692		9,364,998
Lloyds Banking Group plc *		2,678,984		1,417,396
Royal Bank of Scotland Group plc *		121,412		436,408
Standard Chartered plc		147,889		3,268,627

				16,647,948


Capital Goods 0.7%
BAE Systems plc		207,900		1,051,744
Bunzl plc		16,632		296,932
Cobham plc		60,060		209,204
IMI plc		9,240		126,217
Invensys plc		47,432		181,943
Meggitt plc		30,800		193,337
Rolls-Royce Holdings plc *		108,724		1,417,800
Smiths Group plc		28,336		470,328
The Weir Group plc		9,240		239,665
Wolseley plc		20,020		808,325

				4,995,495


Commercial & Professional Services 0.3%
Aggreko plc		16,632		623,452
Capita plc		38,500		441,514
Experian plc		60,676		967,602
G4S plc		87,472		351,508
Hays plc		95,172		103,927
Rentokil Initial plc		137,368		167,896

				2,655,899


Consumer Durables & Apparel 0.1%
Burberry Group plc		30,492		655,285


Consumer Services 0.5%
Carnival plc		17,556		602,039
Compass Group plc		138,600		1,560,831
Intercontinental Hotels Group plc		16,016		408,296
Ladbrokes plc		87,164		234,944
TUI Travel plc		60,676		204,025
Whitbread plc		18,172		614,793
William Hill plc		71,456		340,832

				3,965,760


Diversified Financials 0.2%
3i Group plc		66,220		216,357
Ashmore Group plc		21,252		111,056
Hargreaves Lansdown plc		14,168		139,748
ICAP plc		51,436		259,556
Investec plc		15,400		91,825
London Stock Exchange Group plc		6,160		97,206
Man Group plc		92,092		104,294
Schroders plc		9,548		215,503
Schroders plc, Non-Voting Shares		6,160		113,497

				1,349,042


Energy 3.7%
AMEC plc		20,328		358,074
BG Group plc		206,976		4,234,305
BP plc		1,166,396		8,176,651
Cairn Energy plc *		21,868		99,687
Essar Energy plc *		27,412		43,671
John Wood Group plc		31,108		405,412
Petrofac Ltd.		9,240		220,439
Royal Dutch Shell plc, A Shares		226,072		7,914,157
Royal Dutch Shell plc, B Shares		153,692		5,545,112
Tullow Oil plc		60,984		1,320,256

				28,317,764


Food & Staples Retailing 0.5%
J Sainsbury plc		120,736		628,242
Tesco plc		486,640		2,601,766
William Morrison Supermarkets plc		162,624		723,251

				3,953,259


Food, Beverage & Tobacco 2.6%
Associated British Foods plc		22,792		479,310
British American Tobacco plc		123,200		6,460,533
Diageo plc		154,000		4,219,453
Imperial Tobacco Group plc		60,984		2,378,979
SABMiller plc		73,304		3,236,240
Tate & Lyle plc		33,880		353,015
Unilever plc		80,696		2,901,848

				20,029,378


Health Care Equipment & Services 0.1%
Smith & Nephew plc		52,360		554,717


Household & Personal Products 0.4%
Reckitt Benckiser Group plc		49,280		2,786,551


Insurance 0.8%
Aviva plc		172,788		894,975
Legal & General Group plc		405,020		823,441
Old Mutual plc		318,007		840,497
Prudential plc		180,488		2,256,157
Resolution Ltd.		214,406		734,911
Standard Life plc		131,208		552,897

				6,102,878


Materials 2.2%
Anglo American plc		85,316		2,371,455
Antofagasta plc		16,016		281,610
BHP Billiton plc		134,288		3,916,122
CRH plc		44,968		791,388
Eurasian Natural Resources Corp.		25,872		124,062
Fresnillo plc		12,628		313,100
Glencore International plc		229,460		1,403,364
Johnson Matthey plc		12,054		459,695
Kazakhmys plc		19,712		185,666
Lonmin plc		13,552		123,340
Randgold Resources Ltd.		5,236		525,609
Rexam plc		63,756		429,169
Rio Tinto plc		86,856		3,773,835
Vedanta Resources plc		7,392		101,854
Xstrata plc		145,068		2,194,048

				16,994,317


Media 0.5%
Aegis Group plc		45,629		172,128
British Sky Broadcasting Group plc		71,148		859,991

28 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Daily Mail & General Trust plc, A Shares		13,552		103,214
ITV plc		281,512		372,467
Pearson plc		43,736		830,144
Reed Elsevier plc		64,372		603,758
WPP plc		75,152		972,847

				3,914,549


Pharmaceuticals, Biotechnology & Life Sciences 1.5%
AstraZeneca plc		88,088		4,108,592
GlaxoSmithKline plc		291,984		6,608,764
Shire plc		32,340		984,197

				11,701,553


Real Estate 0.3%
British Land Co. plc		84,392		723,168
Capital Shopping Centres Group plc		66,528		356,952
Hammerson plc		65,296		473,968
Land Securities Group plc		48,356		607,538
SEGRO plc		60,676		223,107

				2,384,733


Retailing 0.2%
Kingfisher plc		128,128		560,880
Marks & Spencer Group plc		86,856		493,613
Next plc		9,856		559,658

				1,614,151


Semiconductors & Semiconductor Equipment 0.1%
ARM Holdings plc		86,548		789,069


Software & Services 0.0%
The Sage Group plc		79,156		372,405

				372,405


Telecommunication Services 1.4%
BT Group plc		460,152		1,590,401
Inmarsat plc		26,796		243,664
Vodafone Group plc		2,985,136		8,605,717

				10,439,782


Transportation 0.0%
International Consolidated Airlines Group S.A. *		70,840		159,552


Utilities 0.8%
Centrica plc		329,868		1,711,732
Drax Group plc		22,484		166,420
National Grid plc		202,664		2,200,196
Severn Trent plc		13,552		372,603
SSE plc		52,668		1,144,404
United Utilities Group plc		33,880		381,536

				5,976,891

				146,704,608

Total Common Stock
(Cost $787,965,765)				760,958,498




Preferred Stock 0.4% of net assets

Germany 0.4%


Automobiles & Components 0.3%
Porsche Automobil Holding SE		9,856		510,605
Volkswagen AG		11,088		1,962,290

				2,472,895


Household & Personal Products 0.1%
Henkel AG & Co. KGaA		9,240		699,870

				3,172,765

Italy 0.0%


Diversified Financials 0.0%
EXOR S.p.A.		2,772		55,521

Total Preferred Stock
(Cost $2,782,165)				3,228,286




Warrants 0.0% of net assets

Israel 0.0%


Energy 0.0%
Isramco Negev 2 LP *		29,600		74

Total Warrants
(Cost $—)				74




Other Investment Company 0.0% of net assets

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund		250,173		250,173

Total Other Investment Company
(Cost $250,173)				250,173



End of Investments



Collateral Invested for Securities on Loan 0.3% of net assets


State Street Institutional U.S. Government Money Market Fund		2,686,618		2,686,618

Total Collateral Invested for Securities on Loan
(Cost $2,686,618)				2,686,618



End of Collateral Invested for Securities on Loan

At 08/31/12, the tax basis cost of the fund’s investments was $793,246,211 and the unrealized appreciation and depreciation were $65,911,759 and ($94,720,939), respectively, with a net unrealized depreciation of ($28,809,180).


*		Non-income producing security.
(a)		Illiquid security. At the period end, the value of these amounted to $213,385 or 0% of net assets.
(b)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(c)		All or a portion of this security is on loan.

See financial notes 29

Schwab International Equity ETF

Portfolio Holdings continued


ADR —		American Depositary Receipt
CDI —		CHESS Depositary Interest
CVA —		Dutch Certificate
GDR —		Global Depositary Receipt
Reg’d —		Registered
REIT —		Real Estate Investment Trust
RSP —		Risparmio (Convertible Savings Shares)

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2012 (see financial note 2(a) for additional information):


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

Common Stock¹		$722,648,614		$—		$—		$722,648,614
Republic of Korea¹		33,107,357		—		—		33,107,357
Automobiles & Components		4,989,142		—		213,385		5,202,527
Preferred Stock¹		3,228,286		—		—		3,228,286
Warrants¹		74		—		—		74
Other Investment Company¹		250,173		—		—		250,173

Total		$764,223,646		$—		$213,385		$764,437,031

Other Financial Instruments
Collateral Invested for Securities on Loan		$2,686,618		$—		$—		$2,686,618


¹		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:


	Balance				Change in												Balance
	as of		Realized		Unrealized								Gross		Gross		as of
	August 31,		Gains		Gains			Gross		Gross			Transfers		Transfers		August 31,
Investments in Securities	2011		(Losses)		(Losses)			Purchases		Sales			in		out		2012

Common Stock
Australia		$9,160		$—		($53,146	)		$43,986		$—			$—		$—		$—
Japan		199,871		—		31,463			—		(231,334	)		—		—		$—
Republic of Korea		—		—		(4,252	)		54,031		—			163,606		—		$213,385

Total		$209,031		$—		($25,935	)		$98,017		($231,334	)		$163,606		$—		$213,385

All net realized and change in unrealized gains (losses) on Level 3 investments in the tables above are reflected on the accompanying Statement of Operations. Changes in net unrealized gains (losses) for Level 3 investments held by the fund at August 31, 2012 are ($80,042).

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were transfers in and out of Level 3 from Level 1 due to the result of fair valued securities for which no quoted value was available. There were no transfers between Level 1 and Level 2 for the period ended August 31, 2012.

30 See financial notes

Schwab International Equity ETF

Statement of

Assets and Liabilities

As of August 31, 2012



Assets

Investments, at value (cost $790,998,103) including securities on loan of $2,952,767		$764,437,031
Collateral invested for securities on loan		2,686,618
Foreign currency, at value (cost $1,528,466)		1,543,097
Receivables:
Dividends		2,034,079
Foreign tax reclaims		652,683
Income from securities on loan		9,031
Interest	+	16

Total assets		771,362,555

Liabilities

Collateral held for securities on loan		2,686,618
Payables:
Investment adviser fees		8,236
Due to custodian	+	1,381

Total liabilities		2,696,235

Net Assets

Total assets		771,362,555
Total liabilities	—	2,696,235

Net assets		$768,666,320

Net Assets by Source
Capital received from investors		802,643,444
Net investment income not yet distributed		17,242,772
Net realized capital losses		(24,657,711	)
Net unrealized capital losses		(26,562,185	)

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$768,666,320

30,800,000

$24.96

See financial notes 31

Schwab International Equity ETF

Statement of

Operations

For September 1, 2011 through August 31, 2012



Investment Income

Dividends (net of foreign withholding tax of $1,965,794)		$24,000,308
Interest		3,763
Securities on loan	+	254,676

Total investment income		24,258,747

Expenses

Investment adviser fees		893,428

Total expenses	−	893,428

Net investment income		23,365,319

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(18,820,574	)
Net realized losses on foreign currency transactions	+	(330,156	)

Net realized losses		(19,150,730	)
Net unrealized losses on investments		(6,152,346	)
Net unrealized losses on foreign currency translations	+	(65,073	)

Net unrealized losses	+	(6,217,419	)

Net realized and unrealized losses		(25,368,149	)

Net decrease in net assets resulting from operations		($2,002,830	)

32 See financial notes

Schwab International Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/11-8/31/12				9/1/10-8/31/11
Net investment income		$23,365,319			$16,338,245
Net realized losses		(19,150,730	)		(3,996,445	)
Net unrealized losses	+	(6,217,419	)		(1,919,270	)

Net increase (decrease) in net assets resulting from operations		(2,002,830	)		10,422,530

Distributions to Shareholders

Distributions from net investment income		($19,440,541	)		($7,027,040	)

Transactions in Fund Shares

9/1/11-8/31/12

9/1/10-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares sold

6,400,000

$155,902,019

12,400,000

$344,943,232

Shares redeemed

)

(24

)

—

Net transactions in fund shares

6,399,999

$155,901,995

12,400,000

$344,943,232

Shares Outstanding and Net Assets

9/1/11-8/31/12

9/1/10-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

24,400,001

$634,207,696

12,000,001

$285,868,974

Total increase

6,399,999

134,458,624

12,400,000

348,338,722

End of period

30,800,000

$768,666,320

24,400,001

$634,207,696

Net investment income not yet distributed

$17,242,772

$13,591,511

See financial notes 33

Schwab International Small-Cap Equity ETF™

Financial Statements

Financial Highlights


	9/1/11–			9/1/10–			1/13/10¹–
	8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		27.48			23.54			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.67			0.72			0.21
Net realized and unrealized gains (losses)		(2.39	)		3.88			(1.67	)

Total from investment operations		(1.72	)		4.60			(1.46	)
Less distributions:
Distributions from net investment income		(0.82	)		(0.66	)		—

Net asset value at end of period		24.94			27.48			23.54

Total return (%)		(5.91	)		19.52			(5.84	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.35			0.35			0.35	³
Gross operating expenses		0.35			0.35			0.35	³
Net investment income (loss)		2.65			2.46			2.18	³
Portfolio turnover rate⁴		25			18			7	²
Net assets, end of period ($ x 1,000)		159,610			162,139			58,848

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.

34 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings as of August 31, 2012

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	.5%	Common Stock		165,608,987		157,289,538
	0	.4%	Other Investment Companies		533,441		600,081
	0	.5%	Preferred Stock		787,961		819,744
	0	.0%	Rights		—		20,535


	99	.4%	Total Investments		166,930,389		158,729,898
	3	.6%	Collateral Invested for Securities on Loan		5,730,800		5,730,800
	(3	.0)%	Other Assets and Liabilities, Net				(4,851,097	)


	100	.0%	Net Assets				159,609,601


	Number		Value
Security	of Shares		($)

Common Stock 98.5% of net assets

Australia 7.1%


Capital Goods 0.7%
Ausdrill Ltd.		16,000		46,298
Boart Longyear Ltd.		61,952		90,274
Bradken Ltd.		22,713		131,447
Cardno Ltd.		12,800		98,682
Emeco Holdings Ltd.		56,740		45,738
Macmahon Holdings Ltd.		206,517		126,988
Monadelphous Group Ltd. (c)		9,565		198,589
NRW Holdings Ltd.		47,744		121,872
Seven Group Holdings Ltd.		12,800		107,413
UGL Ltd.		17,742		191,239

				1,158,540


Commercial & Professional Services 0.5%
Cabcharge Australia Ltd. (c)		27,104		156,019
Mineral Resources Ltd.		6,400		47,423
SAI Global Ltd.		37,841		168,159
Seek Ltd.		35,848		264,146
Transfield Services Ltd.		72,793		138,043
Transpacific Industries Group Ltd. *		48,000		44,149

				817,939


Consumer Durables & Apparel 0.1%
Billabong International Ltd.		28,763		40,129
G.U.D. Holdings Ltd. (c)		19,018		167,846

				207,975


Consumer Services 0.3%
Invocare Ltd.		36,169		333,419
Navitas Ltd. (c)		34,165		151,118

				484,537


Diversified Financials 0.1%
FlexiGroup Ltd.		32,000		112,109


Energy 0.5%
Aurora Oil & Gas Ltd. *		73,088		245,481
AWE Ltd.		83,941		124,051
Beach Energy Ltd.		73,744		89,929
Coalspur Mines Ltd. *(c)		65,600		40,677
Drillsearch Energy Ltd. *		35,904		53,431
Karoon Gas Australia Ltd. *		36,800		152,124
Linc Energy Ltd. *		121,344		66,463

				772,156


Food, Beverage & Tobacco 0.3%
Australian Agricultural Co., Ltd. *		34,165		45,547
GrainCorp Ltd.		38,400		365,891
Senex Energy Ltd. *		88,614		65,020

				476,458


Health Care Equipment & Services 0.3%
Primary Health Care Ltd.		95,670		368,785
Sigma Pharmaceuticals Ltd.		160,320		113,493

				482,278


Materials 1.5%
Bathurst Resources Ltd. *(c)		89,614		32,414
Beadell Resources Ltd. *		48,823		39,356
Coal of Africa Ltd. *(c)		97,013		28,072
CuDeco Ltd. *(c)		15,168		65,210
Discovery Metals Ltd. *(c)		48,000		47,869
Evolution Mining Ltd. *		51,200		82,279
Gindalbie Metals Ltd. *(c)		152,626		52,051
Gryphon Minerals Ltd. *(c)		47,835		30,897
Independence Group NL		31,725		114,752
Integra Mining Ltd. *		145,385		70,617
Intrepid Mines Ltd. *(c)		60,597		17,222
Kingsgate Consolidated Ltd.		23,915		105,780
Medusa Mining Ltd. (c)		32,548		167,174
Mineral Deposits Ltd. *		5,312		27,448
Mount Gibson Iron Ltd.		149,013		112,418
PanAust Ltd. *		80,704		221,019
Perseus Mining Ltd. *		85,214		215,758
Regis Resources Ltd. *		52,610		257,713
Resolute Mining Ltd. *		95,680		145,849
Sandfire Resources NL *		15,189		113,019
Silver Lake Resources Ltd. *(c)		25,600		78,575
St. Barbara Ltd. *(c)		54,697		83,659
Sundance Resources Ltd. *		489,280		161,807
Western Areas NL (c)		16,000		65,810

				2,336,768


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Acrux Ltd. *		19,200		66,075
Mesoblast Ltd. *(c)		41,024		269,216
Pharmaxis Ltd. *(c)		44,800		50,002

				385,293


Real Estate 1.0%
Abacus Property Group		70,059		146,253
Aspen Group (c)		64,000		18,519
BWP Trust		116,664		238,721
Centro Retail Australia		134,529		297,522

See financial notes 35

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Challenger Diversified Property Group		25,626		61,176
Charter Hall Group		47,835		131,992
Charter Hall Retail REIT		65,888		236,960
FKP Property Group (c)		199,650		61,899
Investa Office Fund		122,081		357,046

				1,550,088


Retailing 0.6%
Automotive Holdings Group		54,625		167,098
David Jones Ltd. (c)		71,488		178,788
JB Hi-Fi Ltd. (c)		11,095		104,686
Myer Holdings Ltd. (c)		82,005		168,648
Pacific Brands Ltd.		181,376		114,340
Premier Investments Ltd.		12,800		65,215
Super Retail Group Ltd.		16,000		131,455
Wotif.com Holdings Ltd. (c)		18,797		83,725

				1,013,955


Semiconductors & Semiconductor Equipment 0.0%
Silex Systems Ltd. *		15,552		59,467


Software & Services 0.2%
carsales.com Ltd. (c)		15,937		119,902
Iress Ltd. (c)		29,760		225,745

				345,647


Telecommunication Services 0.1%
TPG Telecom Ltd.		62,600		134,564


Transportation 0.3%
Australian Infrastructure Fund		64,000		203,714
Virgin Australia Holdings Ltd. *		424,000		197,182
Virgin Australia International Holdings Ltd. (a)(b)		424,000		—

				400,896


Utilities 0.4%
DUET Group		96,000		208,343
Energy World Corp. Ltd. *		147,200		77,583
Hastings Diversified Utilities Fund		38,400		103,577
Infigen Energy *(c)		133,696		42,141
Spark Infrastructure Group (d)		147,200		246,441

				678,085

				11,416,755

Austria 0.7%


Automobiles & Components 0.1%
Semperit AG Holding		2,680		98,000


Capital Goods 0.1%
Wienerberger AG		17,792		136,848


Energy 0.1%
Schoeller-Bleckmann Oilfield Equipment AG		1,637		156,739


Materials 0.0%
Mayr Melnhof Karton AG		680		63,086


Real Estate 0.3%
Atrium European Real Estate Ltd.		27,555		135,459
CA Immobilien Anlagen AG *		12,800		126,010
Conwert Immobilien Invest SE		12,800		140,369
S IMMO AG		6,400		37,754

				439,592


Transportation 0.1%
Oesterreichische Post AG		4,583		153,954

				1,048,219

Belgium 1.1%


Consumer Durables & Apparel 0.0%
Van de Velde N.V.		832		36,181


Diversified Financials 0.4%
Ackermans & van Haaren N.V.		3,695		285,880
RHJ International *		21,067		97,988
Sofina S.A.		2,594		198,571

				582,439


Materials 0.2%
Nyrstar *		26,541		128,132
Tessenderlo Chemie N.V.		4,511		129,871

				258,003


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
ThromboGenics N.V. *		2,560		90,095


Real Estate 0.2%
Befimmo S.C.A. Sicafi		2,325		134,928
Cofinimmo		1,664		183,529

				318,457


Retailing 0.1%
D’Ieteren S.A. N.V.		4,480		198,550


Semiconductors & Semiconductor Equipment 0.0%
Melexis N.V.		3,200		52,437


Technology Hardware & Equipment 0.1%
Barco N.V.		1,088		65,499
EVS Broadcast Equipment S.A.		2,702		131,126

				196,625

				1,732,787

Canada 21.8%


Automobiles & Components 0.1%
Linamar Corp.		7,200		150,515


Banks 0.4%
Canadian Western Bank		7,200		205,235
Genworth MI Canada, Inc.		7,200		142,490
Home Capital Group, Inc.		7,200		372,093

				719,818


Capital Goods 0.8%
Aecon Group, Inc.		7,200		90,105
ATS Automation Tooling Systems, Inc. *		14,400		128,992
CAE, Inc.		32,000		326,858
Russel Metals, Inc.		7,200		182,764
Superior Plus Corp.		12,800		115,049
Toromont Industries Ltd.		8,500		174,591
Westport Innovations, Inc. *(c)		6,400		225,558

				1,243,917


Commercial & Professional Services 0.5%
Progressive Waste Solutions Ltd.		14,000		277,489
Ritchie Bros. Auctioneers, Inc.		14,400		268,053
Stantec, Inc.		7,200		230,187

36 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Transcontinental, Inc., Class A		7,200		71,573

				847,302


Consumer Durables & Apparel 0.4%
Dorel Industries, Inc., Class B		6,400		212,393
Gildan Activewear, Inc.		12,800		387,820

				600,213


Diversified Financials 0.6%
AGF Management Ltd., Class B		7,200		83,028
Canaccord Financial, Inc.		7,200		36,698
Dundee Corp., Class A *		7,200		166,785
GMP Capital, Inc.		6,400		34,048
Onex Corp.		15,700		616,641
TMX Group, Inc.		1,800		90,926

				1,028,126


Energy 6.0%
Advantage Oil & Gas Ltd. *		21,600		75,294
AltaGas Ltd.		12,800		402,347
Athabasca Oil Corp. *		54,000		743,092
Bankers Petroleum Ltd. *		34,000		92,334
Baytex Energy Corp. (c)		12,800		582,378
Birchcliff Energy Ltd. *		12,800		87,422
BlackPearl Resources, Inc. *		38,400		123,739
Bonavista Energy Corp.		12,800		214,403
Calfrac Well Services Ltd.		7,200		175,467
Celtic Exploration Ltd. *		15,500		259,786
Crew Energy, Inc. *		7,200		45,746
Denison Mines Corp. *		64,000		89,497
Enerflex Ltd.		7,200		89,521
Enerplus Corp.		19,200		302,344
Ensign Energy Services, Inc.		14,400		219,170
Gibson Energy, Inc.		6,400		140,536
Keyera Corp.		6,400		291,838
Legacy Oil & Gas, Inc. *		14,000		91,787
Mullen Group Ltd.		7,200		168,682
Nuvista Energy Ltd. *		14,400		63,912
Paramount Resources Ltd., A Shares *		7,200		175,759
Pason Systems, Inc.		7,200		108,564
Pembina Pipeline Corp.		32,060		868,058
Pengrowth Energy Corp.		44,804		302,371
PetroBakken Energy Ltd., A Shares (c)		6,800		89,578
Petrobank Energy & Resources Ltd. *		9,600		120,334
Petrominerales Ltd.		12,800		120,756
Peyto Exploration & Development Corp.		12,800		264,989
Precision Drilling Corp. *		32,000		236,388
Progress Energy Resources Corp.		32,000		712,408
Savanna Energy Services Corp.		14,400		106,667
ShawCor Ltd., Class A		7,200		253,461
SouthGobi Resources Ltd. *(c)		12,800		34,891
Tourmaline Oil Corp. *		16,000		447,160
Trican Well Service Ltd.		21,000		253,230
Trilogy Energy Corp.		8,000		175,103
Trinidad Drilling Ltd.		19,200		126,463
Uranium One, Inc. *		70,400		168,358
Veresen, Inc. (c)		19,200		254,288
Vermilion Energy, Inc.		9,600		436,881

				9,515,002


Food & Staples Retailing 0.8%
Empire Co., Ltd., A Shares		6,400		370,828
Metro, Inc.		12,800		742,695
The Jean Coutu Group, Inc., A Shares		14,400		210,269

				1,323,792


Food, Beverage & Tobacco 0.6%
Cott Corp. *		14,400		118,778
Maple Leaf Foods, Inc.		14,400		161,240
Viterra, Inc.		42,600		696,726

				976,744


Health Care Equipment & Services 0.7%
Catamaran Corp. *		10,700		927,691
Extendicare, Inc. (c)		14,400		116,589

				1,044,280


Insurance 0.1%
Industrial Alliance Insurance & Financial Services, Inc.		7,200		183,274


Materials 4.9%
Alacer Gold Corp. *		32,000		191,964
Alamos Gold, Inc.		15,000		281,654
AuRico Gold, Inc. *		35,827		248,685
Aurizon Mines Ltd. *		21,600		87,770
B2Gold Corp. *		25,600		97,798
Banro Corp. *		12,800		54,995
Canfor Corp. *		14,400		190,424
Capstone Mining Corp. *		28,800		70,625
CCL Industries, Inc., Class B		7,200		263,894
Centerra Gold, Inc.		19,200		145,919
CGA Mining Ltd. *		32,000		78,472
China Gold International Resources Corp. Ltd. *		21,000		72,777
Detour Gold Corp. *		12,800		321,670
Dundee Precious Metals, Inc. *		14,000		120,586
Endeavour Silver Corp. *		6,400		56,811
First Majestic Silver Corp. *		12,800		252,278
Franco-Nevada Corp.		15,800		818,779
Gabriel Resources Ltd. *		21,600		50,561
Harry Winston Diamond Corp. *		7,200		90,470
HudBay Minerals, Inc.		22,700		193,911
Imperial Metals Corp. *		14,000		162,010
Inmet Mining Corp.		7,900		352,312
Katanga Mining Ltd. *		64,000		29,832
Kirkland Lake Gold, Inc. *		6,800		93,919
Lundin Mining Corp. *		57,600		260,903
Major Drilling Group International, Inc.		13,600		128,717
Methanex Corp.		14,400		428,710
Nevsun Resources Ltd.		12,800		51,363
New Gold, Inc. *		51,200		566,554
NovaGold Resources, Inc. *		32,000		149,162
OceanaGold Corp. *(c)		27,200		71,662
Pan American Silver Corp.		19,360		339,587
Pretium Resources, Inc. *		6,400		94,620
Rubicon Minerals Corp. *		32,000		111,871
Seabridge Gold, Inc. *		6,400		107,202
SEMAFO, Inc.		34,400		129,673
Sherritt International Corp.		30,100		133,900
Silver Standard Resources, Inc. *		7,200		106,813
Silvercorp Metals, Inc.		21,000		123,423
Sino-Forest Corp. *(a)(b)		17,700		—
Tahoe Resources, Inc. *		12,800		232,951

See financial notes 37

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Taseko Mines Ltd. *		21,600		64,788
Thompson Creek Metals Co., Inc. *		14,400		40,565
West Fraser Timber Co., Ltd.		6,400		360,517

				7,831,097


Media 1.1%
Aimia, Inc.		25,600		376,146
Astral Media, Inc., A Shares		7,200		345,463
Cineplex, Inc.		6,400		192,937
Cogeco Cable, Inc.		6,400		237,815
Corus Entertainment, Inc.		6,400		150,134
Imax Corp. *		6,800		137,537
Quebecor, Inc., Class B		6,800		243,239
Torstar Corp.		6,800		59,397

				1,742,668


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Nordion, Inc.		14,400		150,296


Real Estate 2.5%
Allied Properties Real Estate Investment Trust		7,200		223,256
Artis Real Estate Investment Trust		12,800		215,311
Boardwalk Real Estate Investment Trust		7,200		469,421
Calloway Real Estate Investment Trust		12,800		380,037
Canadian Apartment Properties Real Estate Investment Trust		7,200		180,939
Canadian Real Estate Investment Trust		7,200		304,970
Chartwell Seniors Housing Real Estate Investment Trust		25,600		268,491
Cominar Real Estate Investment Trust		12,800		313,888
Dundee Real Estate Investment Trust		9,600		371,996
First Capital Realty, Inc.		14,400		280,894
FirstService Corp. *		2,500		67,766
H&R Real Estate Investment Trust (c)		21,000		538,380
InnVest Real Estate Investment Trust		19,200		98,446
Morguard Real Estate Investment Trust		7,200		124,615
Primaris Retail Real Estate Investment Trust		7,200		174,008

				4,012,418


Retailing 0.4%
Dollarama, Inc.		7,000		420,631
Reitmans (Canada) Ltd., Class A		6,800		86,133
RONA, Inc.		12,800		166,672

				673,436


Software & Services 0.5%
MacDonald, Dettwiler & Associates Ltd.		6,400		383,605
Open Text Corp. *		6,400		343,655

				727,260


Technology Hardware & Equipment 0.1%
Celestica, Inc. *		15,000		116,887


Telecommunication Services 0.1%
Manitoba Telecom Services, Inc.		6,400		220,759


Transportation 0.1%
TransForce, Inc.		7,200		132,348


Utilities 1.0%
ATCO Ltd., Class I		6,400		495,476
Atlantic Power Corp.		12,800		180,550
Capital Power Corp.		6,400		141,574
Emera, Inc.		14,000		488,301
Innergex Renewable Energy, Inc.		6,400		70,884
Just Energy Group, Inc. (c)		6,400		70,819
Northland Power, Inc.		6,400		119,783

				1,567,387

				34,807,539

Denmark 0.9%


Banks 0.2%
Jyske Bank A/S *		8,451		242,315
Sydbank A/S *		10,981		187,428

				429,743


Capital Goods 0.1%
NKT Holding A/S		2,934		96,236


Consumer Durables & Apparel 0.1%
Bang & Olufsen A/S *		3,200		38,975
Pandora A/S (c)		5,056		68,465

				107,440


Health Care Equipment & Services 0.2%
GN Store Nord A/S		24,000		325,400


Insurance 0.1%
Topdanmark A/S *		1,600		302,326


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Alk-Abello A/S		1,718		109,273


Software & Services 0.1%
SimCorp A/S		680		117,331

				1,487,749

Finland 1.9%


Capital Goods 0.6%
Cargotec Oyj, B Shares		5,312		125,144
Cramo Oyj		6,034		61,531
Konecranes Oyj (c)		6,037		152,802
Outotec Oyj		5,120		231,819
Ramirent Oyj		12,674		95,854
Uponor Oyj		6,400		64,739
YIT Oyj		14,028		259,399

				991,288


Commercial & Professional Services 0.1%
Lassila & Tikanoja Oyj *		6,402		84,732


Consumer Durables & Apparel 0.1%
Amer Sports Oyj		15,320		186,832


Diversified Financials 0.1%
Pohjola Bank plc, A Shares		20,774		234,754


Materials 0.4%
Huhtamaki Oyj		14,795		212,786
Kemira Oyj		12,800		162,635
Metsa Board Oyj *		39,269		101,472
Tikkurila Oyj		6,400		110,521

				587,414

38 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Orion Oyj, Class B		8,057		165,743


Real Estate 0.1%
Citycon Oyj		35,281		107,177
Sponda Oyj		36,404		144,545

				251,722


Retailing 0.1%
Stockmann Oyj Abp, B Shares		5,058		94,933


Software & Services 0.1%
Tieto Oyj		10,476		180,116


Telecommunication Services 0.2%
Elisa Oyj		13,210		279,907

				3,057,441

France 3.0%


Capital Goods 0.2%
Mersen		2,240		64,941
Nexans S.A.		3,916		182,809
Saft Groupe S.A.		3,297		81,040

				328,790


Commercial & Professional Services 0.1%
Teleperformance		8,355		207,154


Consumer Durables & Apparel 0.1%
Beneteau		6,474		69,853
Nexity		4,060		99,487

				169,340


Energy 0.3%
Bourbon S.A.		7,488		198,211
Etablissements Maurel et Prom		13,201		207,333
Maurel & Prom Nigeria *		16,083		41,964

				447,508


Food & Staples Retailing 0.1%
Rallye S.A.		3,844		115,804


Food, Beverage & Tobacco 0.2%
Remy Cointreau S.A.		3,081		352,670


Health Care Equipment & Services 0.2%
Medica S.A.		9,046		154,960
Orpea		4,480		173,195

				328,155


Materials 0.1%
S.A. des Ciments Vicat		2,560		126,139


Media 0.5%
Havas S.A.		67,075		341,151
Ipsos		4,204		125,537
Metropole Television S.A.		11,834		179,747
Societe d’Edition de Canal +		17,295		100,521

				746,956


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Virbac S.A.		952		172,499


Real Estate 0.1%
Mercialys		3,959		81,517
Societe Immobiliere de Location pour l’Industrie et le Commerce		1,637		159,689

				241,206


Retailing 0.2%
CFAO		6,272		294,730


Semiconductors & Semiconductor Equipment 0.0%
Silicon-On-Insulator Technologies *(c)		19,200		64,376


Software & Services 0.3%
Alten		4,967		149,510
Altran Technologies S.A. *		22,862		127,086
Groupe Steria SCA		4,132		56,433
UbiSoft Entertainment S.A. *		17,309		131,126

				464,155


Technology Hardware & Equipment 0.3%
Ingenico		4,160		221,152
Neopost S.A.		3,595		192,408

				413,560


Utilities 0.2%
Rubis		4,508		249,682

				4,722,724

Germany 4.0%


Automobiles & Components 0.3%
ElringKlinger AG		6,400		188,006
Leoni AG		6,400		240,403

				428,409


Banks 0.1%
Aareal Bank AG *		4,800		96,201


Capital Goods 0.9%
Bauer AG		2,630		54,037
Deutz AG *		20,203		75,634
Gildemeister AG		9,497		138,564
Krones AG		2,730		133,483
KUKA AG *		4,601		115,005
MTU Aero Engines Holding AG		4,727		361,495
Pfeiffer Vacuum Technology AG		1,574		156,738
Rheinmetall AG		1,718		85,203
SGL Carbon SE (c)		4,800		185,384
Vossloh AG		1,152		100,819

				1,406,362


Consumer Durables & Apparel 0.2%
Gerry Weber International AG		3,494		141,507
Rational AG		612		146,455

				287,962


Energy 0.0%
CropEnergies AG		3,200		18,022


Health Care Equipment & Services 0.1%
Rhoen Klinikum AG (c)		8,451		201,865


Materials 0.7%
Aurubis AG		6,150		333,804
Fuchs Petrolub AG		5,941		328,040
Symrise AG		12,962		439,753

				1,101,597


Media 0.1%
Sky Deutschland AG *		64,704		225,430


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
MorphoSys AG *		5,711		140,375

See financial notes 39

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Stada Arzneimittel AG		8,731		246,081

				386,456


Real Estate 0.5%
Alstria Office REIT-AG		8,609		94,648
Deutsche Euroshop AG		6,037		221,250
Deutsche Wohnen AG		13,581		230,248
DIC Asset AG		6,400		57,100
GAGFAH S.A. *		12,674		137,502
IVG Immobilien AG *		19,200		43,781

				784,529


Retailing 0.2%
BayWa AG		1,920		76,078
Douglas Holding AG		4,537		205,308

				281,386


Semiconductors & Semiconductor Equipment 0.2%
Aixtron SE (c)		12,751		189,175
Dialog Semiconductor plc *		8,628		186,136

				375,311


Software & Services 0.2%
Bechtle AG		960		37,833
Wirecard AG		11,618		249,322

				287,155


Technology Hardware & Equipment 0.1%
Wincor Nixdorf AG		4,089		156,197


Telecommunication Services 0.2%
Freenet AG		19,660		302,086

				6,338,968

Greece 0.2%


Banks 0.1%
Bank of Cyprus plc *		243,519		52,182
Piraeus Bank S.A. *		138,078		44,034

				96,216


Energy 0.0%
Motor Oil (Hellas) Corinth Refineries S.A.		11,800		70,800


Materials 0.1%
Titan Cement Co. S.A. *		8,550		142,799


Retailing 0.0%
JUMBO S.A. *		15,000		67,122

				376,937

Hong Kong 3.9%


Automobiles & Components 0.1%
Minth Group Ltd.		144,000		160,407


Capital Goods 0.1%
China Liansu Group Holdings Ltd. (c)		64,000		30,365
China Singyes Solar Technologies Holdings Ltd.		76,800		27,725
Haitian International Holdings Ltd. (c)		68,000		68,647
Lonking Holdings Ltd. (c)		128,000		19,638
Singamas Container Holdings Ltd.		256,000		56,110

				202,485


Consumer Durables & Apparel 0.5%
Daphne International Holdings Ltd.		145,000		145,070
Haier Electronics Group Co., Ltd. *		68,000		80,044
Ports Design Ltd. (c)		72,000		56,718
Samsonite International S.A.		76,800		142,980
Skyworth Digital Holdings Ltd.		328,000		134,055
Stella International Holdings Ltd.		72,000		171,547
Trinity Ltd.		162,000		105,476
YGM Trading Ltd.		16,000		34,697

				870,587


Consumer Services 0.1%
Ajisen China Holdings Ltd. (c)		204,000		125,195


Diversified Financials 0.0%
Value Partners Group Ltd. (c)		128,000		54,459


Energy 0.1%
Sino Oil & Gas Holdings Ltd. *(c)		4,160,000		83,669
United Energy Group Ltd. *(c)		512,000		75,253

				158,922


Food, Beverage & Tobacco 0.2%
C.P. Pokphand Co., Ltd.		1,254,000		158,442
Global Bio-Chem Technology Group Co., Ltd. (c)		256,000		25,414
Uni-President China Holdings Ltd. (c)		128,000		132,023

				315,879


Household & Personal Products 0.1%
Vinda International Holdings Ltd. (c)		64,000		100,007


Materials 0.4%
China Lumena New Materials Corp. (c)		256,000		42,247
China Precious Metal Resources Holdings Co., Ltd. *(c)		256,000		44,888
China Shanshui Cement Group Ltd.		288,000		150,382
China Vanadium Titano - Magnetite Mining Co., Ltd. (c)		192,000		27,725
Dongyue Group (c)		192,000		91,591
Fufeng Group Ltd.		144,000		47,714
North Mining Shares Co., Ltd. *		1,280,000		65,186
West China Cement Ltd. (c)		640,000		99,842
Yingde Gases (c)		96,000		74,386

				643,961


Media 0.1%
Phoenix Satellite Television Holdings Ltd.		128,000		38,452
VODone Ltd.		703,999		58,997

				97,449


Pharmaceuticals, Biotechnology & Life Sciences 0.4%
Anxin-China Holdings Ltd.		512,000		108,259
China Medical System Holdings Ltd. (c)		288,600		152,184
China Shineway Pharmaceutical Group Ltd.		64,000		96,376
Sino Biopharmaceutical Ltd.		512,000		200,014

				556,833


Real Estate 0.2%
C C Land Holdings Ltd.		256,000		53,469
Glorious Property Holdings Ltd. *(c)		384,000		54,459
Kaisa Group Holdings Ltd. *(c)		256,000		45,218
Lai Sun Development Co., Ltd. *		2,432,000		43,584

40 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Yuexiu Real Estate Investment Trust		256,000		119,151

				315,881


Retailing 0.6%
China ZhengTong Auto Services Holdings Ltd. *(c)		96,000		57,430
Chow Sang Sang Holdings International Ltd. (c)		26,000		52,561
Emperor Watch & Jewellery Ltd. (c)		830,000		79,188
Giordano International Ltd. (c)		128,000		98,852
Hengdeli Holdings Ltd. (c)		288,000		75,748
Intime Department Store Group Co., Ltd.		96,000		98,646
Luk Fook Holdings International Ltd. (c)		80,000		204,429
New World Department Store China Ltd.		128,000		69,477
PCD Stores Group Ltd.		512,000		34,986
SA SA International Holdings Ltd. (c)		256,000		167,338
Silver Base Group Holdings Ltd. (c)		196,800		81,194

				1,019,849


Semiconductors & Semiconductor Equipment 0.0%
Apollo Solar Energy Technology Holdings Ltd. *		2,560,000		70,302


Software & Services 0.2%
Chinasoft International Ltd. *		200,000		45,125
G-Resources Group Ltd. *		4,080,000		186,740
Hi Sun Technology China Ltd. *(c)		279,000		16,367
Kingdee International Software Group Co., Ltd. *(c)		256,000		38,286
Kingsoft Corp., Ltd.		128,000		59,245

				345,763


Technology Hardware & Equipment 0.3%
China Wireless Technologies Ltd.		512,000		91,096
Digital China Holdings Ltd.		128,000		206,285
Ju Teng International Holdings Ltd.		128,000		56,935
Tech Pro Technology Development Ltd. *		128,000		47,528

				401,844


Telecommunication Services 0.1%
SmarTone Telecommunications Holding Ltd.		64,000		136,478


Transportation 0.1%
Pacific Basin Shipping Ltd.		432,000		179,901


Utilities 0.3%
China Gas Holdings Ltd.		560,000		306,127
China Water Affairs Group Ltd. (c)		256,000		63,701
Towngas China Co., Ltd.		136,000		105,030

				474,858

				6,231,060

Ireland 1.1%


Banks 0.2%
The Governor & Co. of the Bank of Ireland *		3,264,000		362,056


Capital Goods 0.4%
DCC plc		9,615		251,484
Grafton Group plc		42,560		164,159
Kingspan Group plc		21,760		215,149

				630,792


Consumer Services 0.1%
Paddy Power plc		2,560		181,351


Food, Beverage & Tobacco 0.2%
C&C Group plc		51,200		232,658


Health Care Equipment & Services 0.1%
United Drug plc		46,160		151,280


Materials 0.1%
Smurfit Kappa Group plc		25,425		207,705

				1,765,842

Israel 0.2%


Health Care Equipment & Services 0.0%
Given Imaging Ltd. *		3,840		52,618


Semiconductors & Semiconductor Equipment 0.1%
Nova Measuring Instruments Ltd. *		6,400		48,966
Tower Semiconductor Ltd. *		4,266		32,427

				81,393


Software & Services 0.1%
Allot Communications Ltd. *		3,200		83,311
Retalix Ltd. *		3,200		66,267

				149,578


Technology Hardware & Equipment 0.0%
Ceragon Networks Ltd. *		6,400		44,964

				328,553

Italy 1.9%


Automobiles & Components 0.0%
Piaggio & C S.p.A.		22,400		59,068


Banks 0.4%
Banca Popolare dell’Emilia Romagna Scrl		34,551		188,927
Banca Popolare di Milano Scarl *		444,800		230,379
Banca Popolare di Sondrio Scrl		33,600		192,705
Credito Emiliano S.p.A.		14,646		62,436

				674,447


Capital Goods 0.3%
C.I.R. S.p.A - Compagnie Industriali Riunite		68,369		79,888
Danieli & C Officine Meccaniche S.p.A.		9,569		118,205
Impregilo S.p.A.		51,200		185,223

				383,316


Consumer Durables & Apparel 0.1%
Tod’s S.p.A.		1,977		210,949


Diversified Financials 0.2%
Azimut Holding S.p.A.		22,641		240,869
Banca Generali S.p.A.		9,497		112,527

				353,396


Energy 0.1%
ERG S.p.A.		15,307		103,997


Health Care Equipment & Services 0.2%
DiaSorin S.p.A. (c)		4,480		137,110

See financial notes 41

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Sorin S.p.A. *		90,688		194,788

				331,898


Insurance 0.2%
Fondiaria-Sai S.p.A. *		78,936		102,384
Societa Cattolica di Assicurazioni Scrl *		8,873		119,338

				221,722


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Recordati S.p.A.		15,083		108,464


Real Estate 0.0%
Beni Stabili S.p.A.		102,505		45,417


Retailing 0.0%
Yoox S.p.A. *(c)		3,841		45,027


Transportation 0.1%
Ansaldo STS S.p.A.		23,153		182,110


Utilities 0.2%
ACEA S.p.A.		12,746		70,853
Hera S.p.A.		89,071		131,585
IREN S.p.A.		92,915		51,392

				253,830

				2,973,641

Japan 14.1%


Automobiles & Components 0.7%
Akebono Brake Industry Co., Ltd. (c)		12,800		64,736
Daido Metal Co., Ltd.		7,000		57,931
Keihin Corp.		6,400		83,453
Musashi Seimitsu Industry Co., Ltd.		6,400		119,908
Nissin Kogyo Co., Ltd.		12,800		174,100
Press Kogyo Co., Ltd.		32,000		127,509
Showa Corp.		6,400		55,336
Toyo Tire & Rubber Co., Ltd.		20,000		54,151
TPR Co., Ltd.		3,200		40,337
TS Tech Co., Ltd.		12,800		230,825
Unipres Corp.		6,400		175,816

				1,184,102


Banks 0.7%
FIDEA Holdings Co., Ltd.		23,900		47,007
Kiyo Holdings, Inc.		128,000		173,282
The Bank of Okinawa Ltd.		3,200		138,135
The Fukui Bank Ltd.		72,000		168,276
The Miyazaki Bank Ltd.		31,000		77,203
The Oita Bank Ltd.		68,000		213,640
The Toho Bank Ltd.		23,000		73,142
The Tokyo Tomin Bank Ltd.		6,400		61,466
The Tsukuba Bank Ltd.		18,200		60,434
The Yachiyo Bank Ltd.		2,200		42,005
TOMONY Holdings, Inc.		12,800		52,966

				1,107,556


Capital Goods 3.5%
Aica Kogyo Co., Ltd.		12,800		205,487
Amano Corp.		6,800		58,013
Asahi Diamond Industrial Co., Ltd.		6,800		74,774
Central Glass Co., Ltd.		64,000		209,247
Daifuku Co., Ltd.		36,000		188,966
Denyo Co., Ltd.		6,400		70,212
Futaba Corp.		14,400		185,011
Hanwa Co., Ltd.		72,000		242,759
Hitachi Zosen Corp.		170,000		188,889
Inaba Denki Sangyo Co., Ltd.		7,200		200,460
Iseki & Co., Ltd.		68,000		167,612
Iwatani Corp.		64,000		222,324
Kitz Corp.		6,400		26,646
Kyowa Exeo Corp.		21,600		231,724
Maeda Corp.		32,000		136,909
Meidensha Corp.		72,000		262,989
Mirait Holdings Corp.		12,800		91,545
Miura Co., Ltd.		6,800		169,870
Nachi-Fujikoshi Corp.		26,000		75,377
Nichias Corp. (c)		19,000		98,033
Nippo Corp.		8,000		87,356
Nitto Boseki Co., Ltd.		64,000		219,055
Noritz Corp.		12,800		227,392
Oiles Corp.		6,400		128,490
Okumura Corp.		72,000		225,287
OSG Corp.		21,600		307,034
Penta-Ocean Construction Co., Ltd. (c)		32,000		74,381
Sanwa Holdings Corp.		64,000		266,462
SHO-BOND Holdings Co., Ltd.		7,200		241,747
Sintokogio Ltd.		18,800		148,383
Taikisha Ltd.		6,400		146,064
Takasago Thermal Engineering Co., Ltd.		12,800		98,902
Toyo Construction Co., Ltd.		64,000		42,503
Toyo Tanso Co., Ltd.		6,400		161,757
Tsubakimoto Chain Co.		24,000		141,916

				5,623,576


Commercial & Professional Services 0.4%
Daiseki Co., Ltd.		7,200		117,517
Duskin Co., Ltd.		14,400		288,184
Meitec Corp.		7,500		166,284
Mitsubishi Pencil Co., Ltd.		6,400		116,230

				688,215


Consumer Durables & Apparel 0.7%
JVC Kenwood Corp.		11,600		40,889
Mizuno Corp.		39,000		190,268
Pioneer Corp. *(c)		65,300		172,632
Sangetsu Co., Ltd.		7,200		186,667
Seiko Holdings Corp. *		18,000		49,655
Tamron Co., Ltd.		6,400		212,026
Token Corp.		640		26,891
Tomy Co., Ltd.		28,800		163,678

				1,042,706


Consumer Services 0.6%
Accordia Golf Co., Ltd.		384		245,211
Colowide Co., Ltd. (c)		8,000		68,250
Doutor Nichires Holdings Co., Ltd.		19,200		237,609
HIS Co., Ltd.		1,600		55,295
Saizeriya Co., Ltd. (c)		15,500		237,746
Zensho Holdings Co., Ltd. (c)		6,400		82,554

				926,665


Diversified Financials 0.4%
Aiful Corp. *(c)		56,350		102,193
Fuyo General Lease Co., Ltd.		6,400		186,033
IBJ Leasing Co., Ltd.		6,400		159,142
Jaccs Co., Ltd.		14,000		50,421

42 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Japan Securities Finance Co., Ltd.		12,800		58,197
Orient Corp. *		41,000		52,363

				608,349


Energy 0.1%
Itochu Enex Co., Ltd.		6,400		34,166
Shinko Plantech Co., Ltd.		6,400		53,129

				87,295


Food & Staples Retailing 0.5%
Ain Pharmaciez, Inc.		1,400		94,943
Arcs Co., Ltd.		6,400		148,925
Cocokara fine, Inc.		6,400		220,772
Izumiya Co., Ltd.		23,000		111,328
Ministop Co., Ltd.		2,600		43,333
Okuwa Co., Ltd.		4,000		52,005
Valor Co., Ltd.		6,400		111,734

				783,040


Food, Beverage & Tobacco 0.8%
Fuji Oil Co., Ltd.		19,200		256,245
Fujiya Co., Ltd. *(c)		64,000		160,204
Hokuto Corp.		6,400		124,976
Megmilk Snow Brand Co., Ltd.		6,400		109,936
Morinaga Milk Industry Co., Ltd.		72,000		248,276
Nippon Suisan Kaisha Ltd.		19,200		42,176
The Nisshin Oillio Group Ltd.		64,000		248,480
Yonekyu Corp.		19,200		170,667

				1,360,960


Health Care Equipment & Services 0.5%
Nagaileben Co., Ltd.		6,400		98,738
Nihon Kohden Corp.		6,400		216,930
Nikkiso Co., Ltd.		5,000		57,088
Ship Healthcare Holdings, Inc.		6,400		186,197
Toho Holdings Co., Ltd.		12,800		229,517

				788,470


Household & Personal Products 0.3%
Aderans Co., Ltd. *		8,100		98,586
Fancl Corp.		13,600		157,711
Mandom Corp.		7,200		191,173

				447,470


Materials 1.6%
Adeka Corp.		21,600		169,379
Asahi Holdings, Inc. (c)		6,400		105,931
Earth Chemical Co., Ltd.		6,400		236,955
FP Corp.		700		51,941
Kureha Corp.		32,000		132,823
Kyoei Steel Ltd.		6,400		118,192
Nifco, Inc.		6,400		150,559
Nippon Light Metal Co., Ltd.		144,000		143,448
Nippon Soda Co., Ltd.		64,000		274,636
NOF Corp.		32,000		152,031
Sanyo Special Steel Co., Ltd.		30,000		99,617
Sumitomo Light Metal Industries Ltd. (c)		64,000		56,398
Toagosei Co., Ltd.		72,000		265,747
Tokyo Ohka Kogyo Co., Ltd.		6,400		143,285
Toyo Ink SC Holdings Co., Ltd.		72,000		259,310
Yodogawa Steel Works Ltd.		64,000		220,690

				2,580,942


Media 0.3%
Avex Group Holdings, Inc.		6,400		114,840
Kadokawa Group Holdings, Inc. (c)		6,400		175,571
Shochiku Co., Ltd. (c)		20,000		194,636

				485,047


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
KYORIN Holdings, Inc.		7,000		161,635
Nichi-iko Pharmaceutical Co., Ltd.		7,200		161,563
Seikagaku Corp.		14,800		168,981

				492,179


Real Estate 0.3%
Daibiru Corp.		6,400		41,849
Daikyo, Inc.		25,000		60,026
Goldcrest Co., Ltd.		1,920		28,077
Heiwa Real Estate Co., Ltd.		32,000		73,972
Kenedix, Inc. *		332		32,606
Leopalace21 Corp. *(c)		38,400		124,077
TOC Co., Ltd.		12,800		65,389

				425,996


Retailing 0.6%
AOKI Holdings, Inc.		2,600		55,254
Arc Land Sakamoto Co., Ltd.		2,400		37,119
DCM Holdings Co., Ltd. (c)		6,400		42,094
EDION Corp.		12,800		56,235
Geo Holdings Corp.		64		75,443
Gulliver International Co., Ltd.		940		28,212
Honeys Co., Ltd.		1,280		17,868
Joshin Denki Co., Ltd.		10,000		114,048
Megane TOP Co., Ltd.		4,600		52,580
Nissen Holdings Co., Ltd.		7,500		29,981
The Daiei, Inc. *(c)		17,450		38,555
Tsutsumi Jewelry Co., Ltd.		6,400		163,474
Xebio Co., Ltd.		6,400		134,784
Yellow Hat Ltd.		6,400		100,455

				946,102


Semiconductors & Semiconductor Equipment 0.0%
Sanken Electric Co., Ltd.		18,000		54,253


Software & Services 0.5%
eAccess Ltd. (c)		320		58,319
Fuji Soft, Inc.		6,400		113,860
GMO internet, Inc.		11,000		67,012
Ines Corp.		7,800		46,421
IT Holdings Corp.		6,400		80,838
Net One Systems Co., Ltd.		12,800		169,032
Nihon Unisys Ltd.		12,800		85,006
SCSK Corp.		6,400		100,782
Transcosmos, Inc.		3,800		47,706

				768,976


Technology Hardware & Equipment 0.9%
Anritsu Corp.		12,000		144,827
Canon Electronics, Inc.		6,400		136,746
Daiwabo Holdings Co., Ltd.		64,000		112,797
Horiba Ltd.		7,200		212,322
Hosiden Corp.		25,600		131,760
Nichicon Corp.		23,200		177,778
Nippon Chemi-Con Corp. *		12,000		23,142
Oki Electric Industry Co., Ltd. *(c)		64,000		74,380
Riso Kagaku Corp.		2,600		44,794
Ryosan Co., Ltd.		7,200		131,678

See financial notes 43

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Star Micronics Co., Ltd.		6,400		62,202
Wacom Co., Ltd.		64		143,939

				1,396,365


Transportation 0.4%
Iino Kaiun Kaisha Ltd.		12,800		46,590
Japan Airport Terminal Co., Ltd.		8,100		94,552
Nippon Konpo Unyu Soko Co., Ltd.		6,400		82,636
Sankyu, Inc.		64,000		239,489
The Sumitomo Warehouse Co., Ltd.		32,000		140,996

				604,263


Utilities 0.0%
The Okinawa Electric Power Co., Inc.		1,100		35,627

				22,438,154

Netherlands 1.7%


Capital Goods 0.4%
Aalberts Industries N.V.		9,600		164,753
Arcadis N.V.		7,069		147,914
Koninklijke BAM Groep N.V.		28,462		81,439
Royal Imtech N.V.		9,665		250,477

				644,583


Consumer Durables & Apparel 0.1%
Koninklijke Ten Cate N.V.		4,305		103,428


Diversified Financials 0.0%
BinckBank N.V.		11,023		78,184


Food & Staples Retailing 0.1%
Sligro Food Group N.V.		4,655		113,245


Food, Beverage & Tobacco 0.3%
CSM N.V.		9,497		160,411
Nutreco N.V.		4,655		341,026

				501,437


Health Care Equipment & Services 0.1%
Mediq N.V.		7,040		83,211


Insurance 0.1%
Delta Lloyd N.V.		9,600		132,564


Real Estate 0.3%
Eurocommercial Properties N.V.		5,763		203,762
Nieuwe Steen Investments N.V.		7,616		63,581
VastNed Retail N.V.		3,009		122,888
Wereldhave N.V.		2,458		126,504

				516,735


Semiconductors & Semiconductor Equipment 0.1%
ASM International N.V.		6,656		234,917


Software & Services 0.1%
Unit 4 N.V.		4,780		118,817


Technology Hardware & Equipment 0.1%
TKH Group N.V.		6,704		137,319

				2,664,440

New Zealand 0.3%


Insurance 0.0%
TOWER Ltd.		28,800		42,574


Real Estate 0.1%
AMP NZ Office Ltd.		64,000		49,361
Goodman Property Trust		154,834		125,016

				174,377


Transportation 0.1%
Freightways Ltd.		19,200		61,701
Mainfreight Ltd.		6,400		49,618

				111,319


Utilities 0.1%
Infratil Ltd.		108,564		182,290

				510,560

Norway 2.0%


Banks 0.1%
Sparebanken 1 SMN		19,607		114,748


Capital Goods 0.1%
Kongsberg Gruppen A.S.A.		7,040		138,552


Commercial & Professional Services 0.1%
Tomra Systems A.S.A.		31,263		269,318


Energy 0.9%
BW Offshore Ltd.		67,178		49,173
DNO International A.S.A. *		134,400		199,309
Dockwise Ltd. *		4,973		84,135
Fred. Olsen Energy A.S.A.		3,767		159,979
Frontline Ltd. (c)		6,400		19,865
Norwegian Energy Co. A.S.A. *		20,288		18,248
Petroleum Geo-Services A.S.A.		24,000		365,024
Prosafe SE		25,600		195,696
Songa Offshore SE *		22,400		51,703
TGS Nopec Geophysical Co. A.S.A.		11,840		346,053

				1,489,185


Food, Beverage & Tobacco 0.2%
Cermaq A.S.A. *		8,000		107,035
Marine Harvest *		288,000		223,141

				330,176


Media 0.2%
Schibsted A.S.A.		9,262		331,305


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Algeta A.S.A. *		5,900		150,747


Real Estate 0.1%
Norwegian Property A.S.A.		75,548		109,165


Semiconductors & Semiconductor Equipment 0.1%
Nordic Semiconductor A.S.A. *(c)		26,485		72,242
Renewable Energy Corp. A.S.A. *(c)		54,400		16,285

				88,527


Software & Services 0.1%
Atea A.S.A.		15,083		140,610
Opera Software A.S.A.		6,400		38,891

				179,501

				3,201,224

Portugal 0.2%


Capital Goods 0.1%
Sonae		142,899		90,782

44 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Materials 0.0%
Portucel-Empresa Produtora de Pasta e Papel S.A.		23,915		63,817


Media 0.1%
Zon Multimedia Servicos de Telecomunicacoes e Multimedia, SGPS, S.A.		57,767		161,650

				316,249

Republic of Korea 4.2%


Automobiles & Components 0.2%
Nexen Tire Corp.		6,130		105,352
S&T Dynamics Co., Ltd.		3,200		35,113
Ssangyong Motor Co. *		20,300		93,214

				233,679


Banks 0.2%
Jeonbuk Bank		18,054		71,842
KB Financial Group, Inc. ADR		3,500		113,260
Shinhan Financial Group Co., Ltd. ADR		1,755		110,319

				295,421


Capital Goods 0.4%
Doosan Engineering & Construction Co., Ltd. *		14,500		35,272
Hanjin Heavy Industries & Construction Holdings Co., Ltd.		6,000		38,074
Hyundai Elevator Co., Ltd.		969		80,449
Kolon Global Corp.		7,200		25,986
LG International Corp.		4,863		174,440
LS Industrial Systems Co., Ltd.		976		55,483
STX Engine Co., Ltd.		2,200		17,470
Sung Kwang Bend Co., Ltd.		3,300		69,948
Taihan Electric Wire Co., Ltd. *		18,020		28,905
TK Corp. *		3,300		82,891

				608,918


Consumer Durables & Apparel 0.2%
Fila Korea Ltd.		1,500		100,077
LG Fashion Corp.		2,000		58,433
Youngone Corp.		4,000		121,450
Youngone Holdings Co., Ltd.		1,180		64,168

				344,128


Consumer Services 0.3%
Hana Tour Service, Inc.		2,970		127,084
Hotel Shilla Co., Ltd.		7,420		351,177

				478,261


Diversified Financials 0.3%
KIWOOM Securities Co., Ltd.		1,800		96,138
Macquarie Korea Infrastructure Fund		59,000		347,877
TONGYANG Securities, Inc.		27,220		93,202

				537,217


Food, Beverage & Tobacco 0.2%
Binggrae Co., Ltd.		960		72,425
Daesang Corp.		14,040		219,641
Samyang Holdings Corp.		1,310		65,233

				357,299


Health Care Equipment & Services 0.0%
Chabio & Diostech Co., Ltd. *		6,400		53,135


Insurance 0.3%
Korean Reinsurance Co.		15,300		149,005
LIG Insurance Co., Ltd.		6,400		138,196
Meritz Fire & Marine Insurance Co., Ltd.		19,082		211,905

				499,106


Materials 0.6%
Capro Corp.		2,950		38,220
Kolon Industries, Inc.		1,920		108,638
OCI Materials Co., Ltd.		1,706		69,540
Poongsan Corp.		5,250		138,581
Seah Besteel Corp.		5,890		183,507
SK Chemicals Co., Ltd.		5,070		272,128
Taekwang Industrial Co., Ltd.		70		55,155
Young Poong Corp.		100		81,789

				947,558


Media 0.1%
CJ CGV Co., Ltd.		2,000		49,708
CJ E&M Corp. *		1,500		37,942
SM Entertainment Co. *		1,728		85,439

				173,089


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Dong-A Pharmaceutical Co., Ltd.		3,000		252,771
Green Cross Corp.		400		55,349
Ilyang Pharmaceutical Co., Ltd. *		1,500		33,381
LG Life Sciences Ltd. *		1,920		66,672
Medipost Co., Ltd. *		701		66,849
RNL BIO Co., Ltd. *		10,000		43,274

				518,296


Retailing 0.3%
CJ O Shopping Co., Ltd.		408		78,031
Dongsuh Cos., Inc.		800		22,351
GS Home Shopping, Inc.		448		41,972
Himart Co., Ltd.		2,000		108,934
Hyundai Greenfood Co. Ltd.		7,400		114,461
Hyundai Home Shopping Network Corp.		1,000		101,355

				467,104


Semiconductors & Semiconductor Equipment 0.2%
GemVax & Kael Co., Ltd. *		2,295		90,819
Seoul Semiconductor Co., Ltd.		11,280		205,791
Silicon Works Co., Ltd.		1,920		49,666
Wonik IPS Co., Ltd. *		5,500		27,921

				374,197


Technology Hardware & Equipment 0.4%
3S Korea Co., Ltd. *		4,157		56,788
Daeduck Electronics Co., Ltd.		9,350		86,939
Daeduck GDS Co., Ltd.		3,200		37,792
LG Innotek Co., Ltd. *		2,750		217,649
Partron Co., Ltd.		3,200		32,293
SFA Engineering Corp.		3,616		156,798

				588,259


Telecommunication Services 0.1%
SK Broadband Co., Ltd. *		59,000		164,839

See financial notes 45

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Transportation 0.1%
Asiana Airlines, Inc. *		12,280		83,553


Utilities 0.0%
Samchully Co., Ltd.		590		52,520

				6,776,579

Singapore 2.3%


Capital Goods 0.1%
Gallant Venture Ltd. *		320,000		71,830
STX OSV Holdings Ltd. (c)		64,000		77,986

				149,816


Consumer Durables & Apparel 0.0%
China Hongxing Sports Ltd. *(a)(b)		884,000		—


Energy 0.3%
Ezion Holdings Ltd. (c)		64,000		54,129
Ezra Holdings Ltd. *(c)		144,000		124,098
Sakari Resources Ltd. (c)		144,000		215,873
Swiber Holdings Ltd. *(c)		64,000		30,271

				424,371


Food, Beverage & Tobacco 0.1%
GMG Global Ltd.		1,216,000		118,929
Super Group Ltd.		64,000		103,639

				222,568


Health Care Equipment & Services 0.2%
Biosensors International Group Ltd. *		128,000		126,727
Raffles Medical Group Ltd.		64,000		121,597

				248,324


Real Estate 1.0%
CDL Hospitality Trusts		144,000		234,343
Fortune Real Estate Investment Trust		128,000		92,911
Lippo Malls Indonesia Retail Trust		192,000		66,955
Mapletree Commercial Trust		128,000		112,875
Mapletree Industrial Trust		128,000		139,554
Mapletree Logistics Trust		384,000		341,703
Parkway Life Real Estate Investment Trust		64,000		98,509
Suntec Real Estate Investment Trust		420,000		486,532

				1,573,382


Software & Services 0.0%
CSE Global Ltd.		64,000		42,585


Technology Hardware & Equipment 0.1%
LionGold Corp., Ltd. *(c)		204,000		202,790


Transportation 0.3%
Goodpack Ltd.		77,000		113,889
SATS Ltd.		192,000		401,731

				515,620


Utilities 0.2%
Cityspring Infrastructure Trust		128,000		42,585
Hyflux Ltd. (c)		192,000		209,331
Sound Global Ltd. (c)		128,000		59,003

				310,919

				3,690,375

Spain 1.3%


Capital Goods 0.3%
Abengoa S.A. (c)		6,037		104,671
Construcciones y Auxiliar de Ferrocarriles S.A.		476		213,569
Gamesa Corporacion Tecnologica S.A.		17,124		32,053
Obrascon Huarte Lain S.A.		9,108		191,382

				541,675


Commercial & Professional Services 0.1%
Prosegur, Compagnia de Seguridad S.A. - Reg’d		38,400		188,773


Consumer Services 0.1%
Melia Hotels International S.A.		13,048		86,347
NH Hoteles S.A. *		25,600		79,865

				166,212


Diversified Financials 0.1%
Bolsas y Mercados Espanoles		6,400		146,178


Energy 0.1%
Tecnicas Reunidas S.A.		4,184		187,488


Food, Beverage & Tobacco 0.2%
Ebro Foods S.A.		12,818		210,688
Viscofan S.A.		3,767		167,188

				377,876


Insurance 0.1%
Grupo Catalana Occidente S.A.		8,139		122,085


Materials 0.1%
Ence Energia Y Celulosa S.A.		31,572		74,817
Tubacex S.A. *(c)		28,025		60,230

				135,047


Media 0.0%
Antena 3 de Television S.A.		11,983		51,658


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Almirall S.A. *		7,616		57,888
Faes Farma S.A.		52,114		94,593
Zeltia S.A. *(c)		48,606		87,919

				240,400

				2,157,392

Sweden 2.5%


Capital Goods 0.4%
Lindab International AB		9,952		71,540
NCC AB, B Shares		9,998		182,698
Peab AB		27,032		120,103
Trelleborg AB, B Shares		31,183		323,996

				698,337


Commercial & Professional Services 0.1%
Intrum Justitia AB		3,200		47,239
Loomis AB, B Shares		11,049		144,335

				191,574


Consumer Durables & Apparel 0.1%
JM AB		8,681		149,127


Consumer Services 0.2%
Betsson AB *		4,560		134,975

46 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Rezidor Hotel Group AB *		30,732		106,746
SkiStar AB		3,834		47,045

				288,766


Diversified Financials 0.2%
Avanza Bank Holding AB		5,562		110,036
Investment AB Oresund *		4,480		63,090
L E Lundbergforetagen AB, B Shares		5,706		192,422

				365,548


Food & Staples Retailing 0.2%
Axfood AB		5,568		196,766
Hakon Invest AB		5,480		84,662

				281,428


Food, Beverage & Tobacco 0.2%
AarhusKarlshamn AB		7,728		273,681


Materials 0.1%
Billerud AB		10,250		84,750
Hoganas AB, B Shares		3,755		123,907

				208,657


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Meda AB, A Shares		22,924		226,067


Real Estate 0.7%
Castellum AB		22,790		304,766
Fabege AB		19,648		174,473
Hufvudstaden AB, A Shares		16,009		196,678
Kungsleden AB		23,188		122,915
Wallenstam AB, B Shares		12,800		139,760
Wihlborgs Fastigheter AB		7,966		116,092

				1,054,684


Retailing 0.1%
Mekonomen AB		2,688		82,406


Technology Hardware & Equipment 0.1%
Axis Communications AB (c)		5,465		130,814

				3,951,089

Switzerland 3.0%


Automobiles & Components 0.1%
Rieter Holding AG - Reg’d *		748		110,637


Banks 0.2%
Basler Kantonalbank		680		74,596
St. Galler Kantonalbank AG - Reg’d		340		119,210
Valiant Holding AG - Reg’d *		2,050		165,382

				359,188


Capital Goods 0.9%
Belimo Holding AG - Reg’d		72		129,548
Bucher Industries AG - Reg’d		1,280		214,990
Georg Fischer AG - Reg’d *		680		247,166
Huber & Suhner AG - Reg’d		3,369		138,990
Kaba Holding AG, B Shares - Reg’d		680		264,476
Meyer Burger Technology AG *(c)		5,202		75,633
OC Oerlikon Corp. AG - Reg’d *		29,071		258,789
Schweiter Technologies AG *		152		73,080
Zehnder Group AG		768		43,495

				1,446,167


Commercial & Professional Services 0.0%
Gategroup Holding AG *		1,600		38,631


Consumer Durables & Apparel 0.2%
Forbo Holding AG - Reg’d *		476		267,332


Consumer Services 0.1%
Kuoni Reisen Holding AG - Reg’d *		408		101,679


Diversified Financials 0.2%
Bank Sarasin & Cie AG, B Shares - Reg’d *		5,418		153,281
Vontobel Holding AG - Reg’d		4,967		113,668

				266,949


Health Care Equipment & Services 0.2%
Galenica AG - Reg’d		576		337,401


Insurance 0.2%
Helvetia Holding AG - Reg’d		816		269,402


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Tecan Group AG - Reg’d *		1,867		127,688


Real Estate 0.2%
Allreal Holding AG - Reg’d *		1,288		187,264
Mobimo Holding AG - Reg’d *		960		222,314

				409,578


Retailing 0.2%
Dufry AG - Reg’d *		2,298		281,279
Valora Holding AG - Reg’d		408		65,873

				347,152


Software & Services 0.1%
Temenos Group AG - Reg’d *		6,632		94,335


Technology Hardware & Equipment 0.1%
Ascom Holding AG - Reg’d *		5,624		41,327
Logitech International S.A. - Reg’d *(c)		22,726		211,848

				253,175


Transportation 0.2%
Flughafen Zuerich AG - Reg’d		408		157,401
Panalpina Welttransport Holding AG - Reg’d		2,458		231,582

				388,983

				4,818,297

United Kingdom 19.1%


Banks 0.1%
Paragon Group Cos. plc		51,981		156,129


Capital Goods 2.4%
Ashtead Group plc		58,560		263,601
Balfour Beatty plc		70,114		312,269
Bodycote plc		23,192		128,267
Carillion plc		50,186		221,283
Chemring Group plc		21,826		114,056
Cookson Group plc		34,196		325,348
Fenner plc		22,144		122,330
Galliford Try plc		6,400		64,805
Kier Group plc		4,480		91,865
Melrose plc		139,356		523,926
Morgan Crucible Co. plc		31,360		128,013
Qinetiq Group plc		78,897		214,291
Senior plc		64,000		200,666
SIG plc		90,688		141,235
Spirax-Sarco Engineering plc		10,386		324,818

See financial notes 47

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Travis Perkins plc		25,600		417,190
Ultra Electronics Holdings plc		8,681		211,791

				3,805,754


Commercial & Professional Services 1.6%
Babcock International Group plc		38,400		571,501
Berendsen plc		27,104		233,765
Cape plc		12,800		49,282
De La Rue plc		13,667		226,631
Homeserve plc		40,776		143,134
ITE Group plc		49,097		158,150
Michael Page International plc		42,123		242,468
Mitie Group plc		53,195		241,563
Regus plc		109,255		180,650
RPS Group plc		40,046		154,374
Shanks Group plc		44,800		63,900
Sthree plc		12,800		58,096
WS Atkins plc		17,439		183,231

				2,506,745


Consumer Durables & Apparel 1.1%
Barratt Developments plc *		119,360		284,378
Bellway plc		18,242		251,790
Bovis Homes Group plc		15,817		118,882
Persimmon plc		32,320		358,322
Redrow plc *		55,839		137,561
Taylor Wimpey plc		397,760		323,788
The Berkeley Group Holdings plc *		11,588		265,780

				1,740,501


Consumer Services 1.1%
Betfair Group plc		6,400		73,394
Bwin.Party Digital Entertainment plc		89,600		133,920
Dignity plc		9,105		130,880
Domino’s Pizza Group plc		18,490		158,003
Greene King plc		30,367		268,419
J.D. Wetherspoon plc		20,232		143,935
Marston’s plc		98,755		174,426
Millennium & Copthorne Hotels plc		24,690		188,356
Mitchells & Butlers plc *		51,619		220,551
Rank Group plc		32,000		67,092
Restaurant Group plc		31,111		162,823

				1,721,799


Diversified Financials 1.5%
Aberdeen Asset Management plc		118,400		524,125
Close Brothers Group plc		17,511		216,807
Henderson Group plc		81,604		137,522
IG Group Holdings plc		40,712		278,382
Intermediate Capital Group plc		57,111		255,718
International Personal Finance		44,073		202,520
Jupiter Fund Management plc		32,000		114,564
Provident Financial plc		16,000		335,460
Rathbone Brothers plc		9,497		192,932
Tullett Prebon plc		30,223		139,214

				2,397,244


Energy 0.9%
Afren plc *		118,912		243,270
Anglo Pacific Group plc		6,400		23,762
Bumi plc *		13,760		69,501
Enquest plc *		90,688		160,177
Hunting plc		19,520		246,952
Premier Oil plc *		59,200		351,579
Salamander Energy plc *		45,861		142,773
SOCO International plc *		44,443		237,751

				1,475,765


Food & Staples Retailing 0.1%
Booker Group plc		136,675		205,365


Food, Beverage & Tobacco 0.5%
Britvic plc		36,711		186,359
Cranswick plc		12,074		159,847
Dairy Crest Group plc		31,653		171,944
Devro plc		40,555		201,427
Greggs plc		17,280		134,708

				854,285


Household & Personal Products 0.1%
PZ Cussons plc		26,667		128,764


Insurance 1.2%
Amlin plc		55,604		340,557
Beazley plc		92,843		244,353
Catlin Group Ltd.		44,725		325,785
Hiscox Ltd.		46,304		341,773
Jardine Lloyd Thompson Group plc		18,797		229,296
Lancashire Holdings Ltd.		20,672		263,003
Phoenix Group Holdings		10,325		80,358
St. James’s Place plc		22,713		125,437

				1,950,562


Materials 1.7%
AZ Electronic Materials S.A.		32,000		157,971
Centamin plc *		92,391		116,666
Croda International plc		15,279		571,764
DS Smith plc		140,312		359,926
Elementis plc		32,000		111,921
Filtrona plc		28,800		244,733
Hochschild Mining plc (c)		23,895		164,149
Kenmare Resources plc *		212,972		129,559
Mondi plc		47,955		422,359
Petropavlovsk plc		24,338		134,489
RPC Group plc		6,400		44,209
Talvivaara Mining Co. plc *		24,167		48,136
Victrex plc		10,548		224,838

				2,730,720


Media 0.6%
Informa plc		67,200		434,207
Rightmove plc		10,240		261,536
UBM plc		22,400		239,803

				935,546


Pharmaceuticals, Biotechnology & Life Sciences 0.4%
BTG plc *		44,800		215,040
Dechra Pharmaceuticals plc		9,600		75,067
Genus plc		7,465		162,560
Hikma Pharmaceuticals plc		20,076		232,780

				685,447


Real Estate 1.0%
Big Yellow Group plc		23,116		111,471
Capital & Counties Properties plc		77,813		265,728
Derwent London plc		10,332		314,596
Grainger plc		49,025		76,311
Great Portland Estates plc		40,339		281,791
Helical Bar plc		19,704		57,117
London & Stamford Property plc		32,000		61,145

48 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Savills plc		22,190		137,880
Shaftesbury plc		27,953		231,097
Unite Group plc		26,341		102,505

				1,639,641


Retailing 1.0%
Carpetright plc *(c)		7,141		76,221
Debenhams plc		200,135		306,759
Dixons Retail plc *		286,711		79,922
Dunelm Group plc		9,600		89,964
Halfords Group plc		27,483		102,409
Home Retail Group plc		82,880		123,547
Howden Joinery Group plc		86,400		199,675
Inchcape plc		49,280		288,439
N Brown Group plc		38,400		163,277
Ocado Group plc *(c)		32,262		31,002
Sports Direct International plc *		9,604		46,679
WH Smith plc		15,360		146,504

				1,654,398


Semiconductors & Semiconductor Equipment 0.1%
CSR plc		21,067		108,952
Wolfson Microelectronics plc *		12,800		43,711

				152,663


Software & Services 0.6%
Aveva Group plc		7,796		229,453
Computacenter plc		12,800		77,705
Fidessa Group plc		6,253		142,225
Micro Focus International plc		26,063		224,787
SDL plc		6,400		65,364
Telecity Group plc		17,920		247,630

				987,164


Technology Hardware & Equipment 1.5%
Domino Printing Sciences plc		10,930		97,740
Electrocomponents plc		58,605		206,928
Halma plc		35,200		227,274
Imagination Technologies Group plc *		29,760		282,198
Laird plc		56,320		209,506
Oxford Instruments plc		8,088		168,162
Premier Farnell plc		57,600		174,927
Renishaw plc		3,200		79,545
Rotork plc		10,345		361,164
Spectris plc		10,375		284,924
Spirent Communications plc		90,688		228,310

				2,320,678


Telecommunication Services 0.3%
Cable & Wireless Communications plc		153,028		82,520
Colt Group S.A. *		75,548		140,756
Kcom Group plc		57,600		71,361
TalkTalk Telecom Group plc		64,000		197,210

				491,847


Transportation 1.0%
BBA Aviation plc		54,400		164,258
easyJet plc		26,936		227,182
FirstGroup plc		57,418		223,440
Go-Ahead Group plc		9,046		186,787
National Express Group plc		71,920		248,231
Stagecoach Group plc		70,964		323,043
Stobart Group Ltd.		75,548		134,396

				1,507,337


Utilities 0.3%
Pennon Group plc		36,639		428,610

				30,476,964

Total Common Stock
(Cost $165,608,987)				157,289,538




Other Investment Companies 0.4% of net assets

Switzerland 0.3%
BB Biotech AG - Reg’d *		1,646		155,080
Schroder ImmoPLUS		144		172,177
Swisscanto Real Estate Fund Ifca		882		111,199

				438,456

United Kingdom 0.1%
F&C Commercial Property Trust Ltd.		68,004		112,227

United States 0.0%
State Street Institutional U.S. Government Money Market Fund		49,398		49,398

Total Other Investment Companies
(Cost $533,441)				600,081




Preferred Stock 0.5% of net assets

Germany 0.5%


Capital Goods 0.1%
Jungheinrich AG		1,841		57,434
KSB AG		136		60,840

				118,274


Materials 0.2%
Fuchs Petrolub AG		6,150		360,471


Media 0.2%
ProSiebenSat.1 Media AG		12,763		308,161


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Biotest AG		640		32,838

Total Preferred Stock
(Cost $787,961)				819,744




Rights 0.0% of net assets

Australia 0.0%


Food, Beverage & Tobacco 0.0%
GrainCorp Ltd. *(a)		3,491		1,467


Real Estate 0.0%
FKP Property Group *(a)(b)		171,129		17,685

				19,152

See financial notes 49

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Norway 0.0%


Semiconductors & Semiconductor Equipment 0.0%
Renewable Energy Corp. A.S.A. *(a)(b)		34,244		1,383

Total Rights
(Cost $—)				20,535



End of Investments



Collateral Invested for Securities on Loan 3.6% of net assets


State Street Institutional U.S. Government Money Market Fund		5,730,800		5,730,800

Total Collateral Invested for Securities on Loan
(Cost $5,730,800)				5,730,800



End of Collateral Invested for Securities on Loan

At 08/31/12, the tax basis cost of the fund’s investments was $169,472,071 and the unrealized appreciation and depreciation were $16,542,098 and ($27,284,271), respectively, with a net unrealized depreciation of ($10,742,173).


*		Non-income producing security.
(a)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(b)		Illiquid security. At the period end, the value of these amounted to $19,068 or 0% of net assets.
(c)		All or a portion of this security is on loan.
(d)		Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $246,441 or 0.2% of net assets.


ADR —		American Depositary Receipt
Reg’d —		Registered
REIT —		Real Estate Investment Trust

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2012 (see financial note 2(a) for additional information):


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

Common Stock¹		$157,289,538		$—		$—		$157,289,538
Other Investment Companies¹		600,081		—		—		600,081
Preferred Stock¹		819,744		—		—		819,744
Rights¹		—		—		20,535		20,535

Total		$158,709,363		$—		$20,535		$158,729,898

Other Financial Instruments
Collateral Invested for Securities on Loan		$5,730,800		$—		$—		$5,730,800


¹		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:


	Balance					Change in												Balance
	as of		Realized			Unrealized								Gross		Gross		as of
	August 31,		Gains			Gains			Gross		Gross			Transfers		Transfers		August 31,
Investments in Securities	2011		(Losses)			(Losses)			Purchases		Sales			in		out		2012

Common Stock
China		$63,455		$—			($63,455	)		$—		$—			$—		$—		$—
Hong Kong		47,513		(33,059	)		(6,678	)		—		(7,776	)		—		—		—
Rights
Australia		—		—			19,152			—		—			—		—		19,152
Norway		—		—			1,383			—		—			—		—		1,383

Total		$110,968		($33,059	)		($49,598	)		$—		($7,776	)		$—		$—		$20,535

50 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued

All net realized and change in unrealized gains (losses) on Level 3 investments in the tables above are reflected on the accompanying Statement of Operations. Changes in net unrealized gains (losses) for Level 3 investments held by the fund at August 31, 2012 are ($42,920).

See financial notes 51

Schwab International Small-Cap Equity ETF

Statement of

Assets and Liabilities

As of August 31, 2012



Assets

Investments, at value (cost $166,930,389) including securities on loan of $5,376,021		$158,729,898
Collateral invested for securities on loan		5,730,800
Foreign currency, at value (cost $536,532)		543,100
Receivables:
Dividends		279,315
Foreign tax reclaims		48,057
Income from securities on loan		13,823
Interest	+	3

Total assets		165,344,996

Liabilities

Collateral held for securities on loan		5,730,800
Payables:
Investment adviser fees	+	4,595

Total liabilities		5,735,395

Net Assets

Total assets		165,344,996
Total liabilities	—	5,735,395

Net assets		$159,609,601

Net Assets by Source
Capital received from investors		176,555,115
Net investment income not yet distributed		1,658,420
Net realized capital losses		(10,410,444	)
Net unrealized capital losses		(8,193,490	)

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$159,609,601

6,400,000

$24.94

52 See financial notes

Schwab International Small-Cap Equity ETF

Statement of

Operations

For September 1, 2011 through August 31, 2012



Investment Income

Dividends (net of foreign withholding tax of $354,309)		$4,415,607
Interest		170
Securities on loan	+	167,713

Total investment income		4,583,490

Expenses

Investment adviser fees		534,208

Total expenses	−	534,208

Net investment income		4,049,282

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(8,403,953	)
Net realized gains on in-kind redemptions		2,225,079
Net realized losses on foreign currency transactions	+	(66,874	)

Net realized losses		(6,245,748	)
Net unrealized losses on investments		(8,325,384	)
Net unrealized gains on foreign currency translations	+	6,239

Net unrealized losses	+	(8,319,145	)

Net realized and unrealized losses		(14,564,893	)

Net decrease in net assets resulting from operations		($10,515,611	)

See financial notes 53

Schwab International Small-Cap Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/11-8/31/12				9/1/10-8/31/11
Net investment income		$4,049,282			$3,146,034
Net realized gains (losses)		(6,245,748	)		1,158,799
Net unrealized gains (losses)	+	(8,319,145	)		2,001,625

Net increase (decrease) in net assets resulting from operations		(10,515,611	)		6,306,458

Distributions to Shareholders

Distributions from net investment income		($4,859,831	)		($2,126,721	)

Transactions in Fund Shares

9/1/11-8/31/12

9/1/10-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares sold

900,000

$23,266,002

3,800,000

$110,560,371

Shares redeemed

(400,001

)

(10,419,659

)

(400,000

)

(11,449,115

)

Net transactions in fund shares

499,999

$12,846,343

3,400,000

$99,111,256

Shares Outstanding and Net Assets

9/1/11-8/31/12

9/1/10-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

5,900,001

$162,138,700

2,500,001

$58,847,707

Total increase

499,999

(2,529,099

)

3,400,000

103,290,993

End of period

6,400,000

$159,609,601

5,900,001

$162,138,700

Net investment income not yet distributed

$1,658,420

$2,235,289

54 See financial notes

Schwab Emerging Markets Equity ETF™

Financial Statements

Financial Highlights


	9/1/11–			9/1/10–			1/13/10¹–
	8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		26.10			24.30			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.63			0.62			0.27
Net realized and unrealized gains (losses)		(2.51	)		1.41	²		(0.97	)

Total from investment operations		(1.88	)		2.03			(0.70	)
Less distributions:
Distributions from net investment income		(0.57	)		(0.23	)		—

Net asset value at end of period		23.65			26.10			24.30

Total return (%)		(7.04	)		8.31			(2.80	)³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.25			0.25			0.30	^4,5
Gross operating expenses		0.25			0.25			0.30	⁴
Net investment income (loss)		2.96			2.78			2.94	⁴
Portfolio turnover rate⁶		9			9			23	³
Net assets, end of period ($ x 1,000)		515,595			396,661			148,222

¹ Commencement of operations.

³ Not annualized.

⁴ Annualized.

⁵ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended 8/31/10 is a blended rate.

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

See financial notes 55

Schwab Emerging Markets Equity ETF

Portfolio Holdings as of August 31, 2012

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


				Cost		Value
Holdings by Category				($)		($)

	92	.7%	Common Stock		513,775,712		477,817,874
	0	.0%	Corporate Bonds		752		257
	6	.7%	Preferred Stock		44,216,997		34,274,447
	0	.0%	Rights		—		23,654
	0	.2%	Other Investment Company		1,195,351		1,195,351


	99	.6%	Total Investments		559,188,812		513,311,583
	0	.9%	Collateral Invested for Securities on Loan		4,594,077		4,594,077
	(0	.5)%	Other Assets and Liabilities, Net				(2,310,174	)


	100	.0%	Net Assets				515,595,486


	Number		Value
Security	of Shares		($)

Common Stock 92.7% of net assets

Brazil 10.1%


Banks 1.7%
Banco Bradesco S.A. ADR		307,380		5,047,180
Banco do Brasil S.A.		174,400		1,992,357
Banco Santander Brasil S.A. ADR		123,388		935,281
Itau Unibanco Holding S.A.		43,600		607,892

				8,582,710


Capital Goods 0.2%
Embraer S.A. ADR		29,328		790,390
Weg S.A.		43,600		431,906

				1,222,296


Consumer Durables & Apparel 0.2%
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes		53,192		432,813
MRV Engenharia e Participacoes S.A.		52,320		303,753
PDG Realty S.A. Empreendimentos e Participacoes		195,328		380,250

				1,116,816


Diversified Financials 0.5%
BM&FBOVESPA S.A.		351,888		1,864,319
CETIP S.A. - Mercados Organizados		22,903		294,605
Grupo BTG Pactual		29,328		451,689

				2,610,613


Energy 1.6%
OGX Petroleo e Gas Participacoes S.A. *		196,200		609,182
OSX Brasil S.A. *		8,696		47,786
Petroleo Brasileiro S.A. ADR		302,148		6,387,409
Ultrapar Participacoes S.A. ADR		63,656		1,392,793

				8,437,170


Food, Beverage & Tobacco 1.1%
BRF - Brasil Foods S.A. ADR		175,944		2,834,458
Companhia de Bebidas das Americas ADR (a)		21,800		675,146
Cosan S.A. Industria e Comercio		21,800		363,145
JBS S.A. *		91,560		260,369
Souza Cruz S.A.		109,000		1,461,713

				5,594,831


Health Care Equipment & Services 0.0%
Amil Participacoes S.A.		21,800		221,325


Household & Personal Products 0.3%
Hypermarcas S.A. *		29,328		188,336
Natura Cosmeticos S.A.		43,600		1,093,734

				1,282,070


Insurance 0.1%
Porto Seguro S.A.		17,440		161,073
Sul America S.A.		11,093		78,836

				239,909


Materials 1.5%
Braskem S.A. ADR (a)		21,800		274,026
Companhia Siderurgica Nacional S.A. ADR		172,002		829,050
Duratex S.A.		51,998		312,903
Fibria Celulose S.A. ADR *(a)		10,900		84,257
Gerdau S.A.		21,800		159,010
Gerdau S.A. ADR		139,084		1,242,020
MMX Mineracao e Metalicos S.A. *		43,600		117,109
Usinas Siderurgicas de Minas Gerais S.A.		43,600		203,705
Vale S.A. ADR		263,920		4,320,370

				7,542,450


Real Estate 0.2%
BR Malls Participacoes S.A.		68,096		849,082
Multiplan Empreendimentos Imobiliarios S.A.		10,900		278,805

				1,127,887


Retailing 0.2%
Cia Hering		17,222		376,430
Lojas Americanas S.A.		19,512		127,416
Lojas Renner S.A.		21,800		718,985

				1,222,831


Software & Services 0.5%
Cielo S.A.		41,628		1,231,166
Redecard S.A.		87,200		1,441,837

				2,673,003

56 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Telecommunication Services 0.4%
Oi S.A. ADR (a)		164,817		613,119
Oi S.A. ADR		28,122		124,581
Telefonica Brasil S.A. ADR		33,790		722,092
Tim Participacoes S.A.		42,225		167,939
Tim Participacoes S.A. ADR		34,069		664,686

				2,292,417


Transportation 0.6%
All America Latina Logistica S.A.		131,672		579,498
CCR S.A.		261,600		2,351,635

				2,931,133


Utilities 1.0%
Centrais Eletricas Brasileiras S.A. ADR		73,684		478,946
Companhia de Saneamento Basico do Estado de Sao Paulo ADR		8,720		742,159
Companhia Energetica de Minas Gerais ADR		89,929		1,528,793
Companhia Paranaense de Energia ADR		21,800		387,822
CPFL Energia S.A. ADR		21,582		452,790
EDP - Energias do Brasil S.A.		65,400		418,047
Light S.A.		21,800		264,516
Tractebel Energia S.A.		43,600		725,431

				4,998,504

				52,095,965

Chile 2.5%


Banks 0.5%
Banco de Chile		16,608		2,339
Banco de Chile ADR (a)		9,784		824,400
Banco de Credito e Inversiones		4,423		278,981
Banco Santander Chile ADR		11,336		842,151
Corpbanca S.A.		32,225,077		383,776
Sociedad Matriz Banco de Chile S.A., B Shares		845,120		286,792

				2,618,439


Capital Goods 0.2%
Empresas Copec S.A.		81,096		1,167,999


Food & Staples Retailing 0.2%
Cencosud S.A.		149,428		866,172


Food, Beverage & Tobacco 0.0%
Cia Cervecerias Unidas S.A.		16,350		213,309


Materials 0.5%
Cap S.A.		21,364		719,562
Empresas CMPC S.A.		210,588		782,328
Sociedad Quimica y Minera de Chile S.A. ADR		20,146		1,241,799

				2,743,689


Retailing 0.3%
S.A.C.I. Falabella		144,534		1,316,454


Telecommunication Services 0.0%
Empresa Nacional de Telecomunicaciones S.A.		8,720		168,169


Transportation 0.3%
Lan Airlines S.A. ADR (a)		58,648		1,383,506


Utilities 0.5%
Colbun S.A. *		1,997,534		566,031
Empresa Nacional de Electricidad S.A. ADR		23,789		1,171,846
Enersis S.A. ADR		43,600		718,092

				2,455,969

				12,933,706

China 16.5%


Automobiles & Components 0.4%
Brilliance China Automotive Holdings Ltd. *		592,000		578,548
Dongfeng Motor Group Co., Ltd., H Shares		506,000		654,986
Great Wall Motor Co., Ltd., H Shares (a)		225,000		508,235
Guangzhou Automobile Group Co., Ltd., H Shares		215,662		150,425

				1,892,194


Banks 4.4%
Agricultural Bank of China Ltd., H Shares		3,488,000		1,286,147
Bank of China Ltd., H Shares		13,496,000		4,906,846
Bank of Communications Co., Ltd., H Shares		1,402,200		916,571
China CITIC Bank Corp., Ltd., H Shares		1,806,800		861,906
China Construction Bank Corp., H Shares		11,554,000		7,597,151
China Merchants Bank Co., Ltd., H Shares		562,658		970,619
China Minsheng Banking Corp., Ltd., H Shares (a)		872,100		710,610
Chongqing Rural Commercial Bank, H Shares		73,684		30,210
Industrial & Commercial Bank of China Ltd., H Shares		10,300,936		5,577,944

				22,858,004


Capital Goods 0.8%
Beijing Enterprises Holdings Ltd.		109,000		720,928
China Communications Construction Co., Ltd., H Shares		872,000		670,056
China International Marine Containers (Group) Co., Ltd., B Shares		367,000		463,230
China Railway Construction Corp., Ltd., H Shares (a)		327,000		247,055
China Railway Group Ltd., H Shares		436,000		164,141
Citic Pacific Ltd. (a)		218,000		266,729
CITIC Resources Holdings Ltd. *		436,000		53,964
CSR Corp., Ltd., H Shares (a)		464,000		314,668
Metallurgical Corp. of China Ltd., H Shares *(a)		298,000		63,010
Shanghai Electric Group Co., Ltd., H Shares		436,000		174,822

See financial notes 57

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Shanghai Industrial Holdings Ltd.		218,000		598,666
Shanghai Waigaoqiao Free Trade Zone Development Co., Ltd., B Shares		43,600		28,776
Shanghai Zhenhua Heavy Industry Co., Ltd., B Shares *		675,800		202,064
Weichai Power Co., Ltd., H Shares (a)		30,000		79,291
Zhuzhou CSR Times Electric Co., Ltd., H Shares		74,000		178,602
Zoomlion Heavy Industry Science & Technology Co., Ltd., H Shares (a)		190,100		203,427

				4,429,429


Commercial & Professional Services 0.0%
Tianjin Capital Environmental Protection Group Co., Ltd., H Shares		52,000		11,397


Consumer Durables & Apparel 0.0%
Shanghai Haixin Group Co., B Shares *		109,000		43,382
Weiqiao Textile Co., Ltd., H Shares		148,000		51,329

				94,711


Consumer Services 0.0%
Shanghai Jinjiang International Hotels Development Co., Ltd., B Shares		21,800		27,359


Diversified Financials 0.1%
China Everbright Ltd.		100,000		121,579
CITIC Securities Co., Ltd., H Shares (a)		70,000		117,505
Far East Horizon Ltd.		296,000		205,316
Haitong Securities Co., Ltd., H Shares *		162,800		178,621

				623,021


Energy 3.3%
China Coal Energy Co., H Shares		654,000		544,701
China Oilfield Services Ltd., H Shares		436,000		695,914
China Petroleum & Chemical Corp., H Shares		3,052,000		2,872,470
China Shenhua Energy Co., Ltd., H Shares		436,000		1,588,010
CNOOC Ltd.		2,616,000		4,951,217
Inner Mongolia Yitai Coal Co., Ltd., B Shares		152,600		831,060
Kunlun Energy Co., Ltd.		436,000		745,381
PetroChina Co., Ltd., H Shares		3,488,000		4,204,712
Yanzhou Coal Mining Co., Ltd., H Shares		436,000		621,713

				17,055,178


Food & Staples Retailing 0.1%
Lianhua Supermarket Holdings Co., Ltd., H Shares (a)		100,000		87,027
Shanghai Friendship Group, Inc. Ltd., B Shares		59,200		64,942
Wumart Stores, Inc., H Shares		80,000		134,911

				286,880


Food, Beverage & Tobacco 0.2%
Anhui Gujing Distillery Co., Ltd., B Shares		13,000		39,388
China Agri-Industries Holdings Ltd.		218,000		107,929
China Foods Ltd. (a)		180,000		179,159
Tsingtao Brewery Co., Ltd., H Shares		80,000		429,073
Yantai Changyu Pioneer Wine Co., Ltd., B Shares		28,580		158,371

				913,920


Health Care Equipment & Services 0.2%
Shandong Weigao Group Medical Polymer Co., Ltd., H Shares		176,000		193,784
Shanghai Pharmaceuticals Holding Co., Ltd., H Shares		109,000		186,064
Sinopharm Group Co., H Shares		191,600		608,921

				988,769


Insurance 1.6%
China Life Insurance Co., Ltd., H Shares		1,308,000		3,499,243
China Pacific Insurance (Group) Co., Ltd., H Shares		305,300		905,321
China Taiping Insurance Holdings Co., Ltd. *		218,000		290,620
New China Life Insurance Co., Ltd., H Shares (a)		28,000		83,932
PICC Property & Casualty Co., Ltd., H Shares		872,000		1,048,930
Ping An Insurance (Group) Co., H Shares		347,000		2,505,334

				8,333,380


Materials 0.6%
Aluminum Corp. of China Ltd., H Shares *(a)		436,000		166,952
Angang Steel Co., Ltd., H Shares *(a)		150,000		73,296
Anhui Conch Cement Co., Ltd., H Shares (a)		218,000		544,139
BBMG Corp., H Shares		218,000		132,662
Bengang Steel Plates Co., B Shares		109,000		31,760
China BlueChemical Ltd., H Shares		872,000		502,542
China National Building Material Co., Ltd., H Shares (a)		436,000		408,104
China Resources Cement Holdings Ltd.		200,000		88,187
Jiangxi Copper Co., Ltd., H Shares		221,000		479,824
Maanshan Iron & Steel Co., Ltd., H Shares *(a)		436,000		87,130
Zhaojin Mining Industry Co., Ltd., H Shares		109,000		144,186

58 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Zijin Mining Group Co., Ltd., H Shares (a)		1,308,000		409,791

				3,068,573


Real Estate 0.8%
China Overseas Land & Investment Ltd.		650,000		1,468,235
China Resources Land Ltd.		436,000		842,067
China Vanke Co., Ltd., B Shares		457,800		572,527
Guangzhou R&F Properties Co., Ltd., H Shares (a)		217,200		250,909
Sino-Ocean Land Holdings Ltd. (a)		872,000		391,240
Yuexiu Property Co., Ltd.		2,180,000		508,725

				4,033,703


Retailing 0.1%
China Resources Enterprise Ltd.		178,000		528,980


Technology Hardware & Equipment 0.3%
BOE Technology Group Co., Ltd., B Shares *		238,800		31,404
BYD Co., Ltd., H Shares *(a)		80,000		139,449
Lenovo Group Ltd.		1,308,000		1,062,420
ZTE Corp., H Shares (a)		148,560		196,516

				1,429,789


Telecommunication Services 2.7%
China Mobile Ltd.		981,000		10,472,432
China Telecom Corp., Ltd., H Shares		3,488,000		1,915,730
China Unicom (Hong Kong) Ltd.		872,000		1,380,585

				13,768,747


Transportation 0.6%
Air China Ltd., H Shares		872,000		525,027
China COSCO Holdings Co., Ltd., H Shares *(a)		566,000		214,542
China Merchants Holdings International Co., Ltd.		436,000		1,250,733
China Shipping Container Lines Co., Ltd., H Shares *(a)		296,000		56,481
Cosco Pacific Ltd.		436,000		537,956
Guangdong Provincial Expressway Development Co., Ltd., B Shares		87,200		25,633
Jiangsu Expressway Co., Ltd., H Shares		96,000		79,090
Shanghai Jinjiang International Industrial Investment Co., Ltd., B Shares		21,800		14,584
Zhejiang Expressway Co., Ltd., H Shares		436,000		287,809

				2,991,855


Utilities 0.3%
China Longyuan Power Group Corp., H Shares		436,000		282,750
China Resources Power Holdings Co., Ltd.		436,000		932,007
Datang International Power Generation Co., Ltd., H Shares		1,308,000		438,459
Huadian Energy Co., Ltd., B Shares *		174,400		39,066
Huaneng Power International, Inc., H Shares		200,000		137,953

				1,830,235

				85,166,124

Colombia 1.1%


Banks 0.2%
Bancolombia S.A. ADR		20,356		1,169,656


Diversified Financials 0.2%
Corp. Financiera Colombiana S.A.		25,724		465,401
Grupo de Inversiones Suramericana S.A.		28,340		471,091

				936,492


Energy 0.5%
Ecopetrol S.A. ADR		46,870		2,711,429


Food & Staples Retailing 0.1%
Almacenes Exito S.A.		27,250		445,203


Materials 0.0%
Cementos Argos S.A.		43,600		169,715


Utilities 0.1%
Interconexion Electrica S.A. ESP		45,780		275,082
Isagen S.A. ESP		38,368		51,851

				326,933

				5,759,428

Czech Republic 0.5%


Banks 0.1%
Komercni Banka A/S		2,834		550,041


Telecommunication Services 0.1%
Telefonica Czech Republic A/S		15,636		331,565


Utilities 0.3%
CEZ A/S		34,880		1,369,833

				2,251,439

Egypt 0.5%


Banks 0.1%
Commercial International Bank GDR - Reg’d		132,980		678,198


Capital Goods 0.3%
Orascom Construction Industries GDR		30,302		1,362,075


Telecommunication Services 0.1%
Orascom Telecom Holding SAE GDR - Reg’d *		194,686		570,430
Orascom Telecom Media & Technology Holding SAE GDR - Reg’d (b)(c)		176,826		82,578

				653,008

				2,693,281

See financial notes 59

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Hungary 0.4%


Banks 0.1%
OTP Bank plc		53,628		850,935


Energy 0.2%
MOL Hungarian Oil & Gas plc		12,320		907,789


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Richter Gedeon Nyrt.		2,398		409,310

				2,168,034

India 8.9%


Automobiles & Components 0.5%
Bajaj Auto Ltd.		21,120		614,027
Hero Motocorp Ltd.		13,953		442,232
Mahindra & Mahindra Ltd.		40,548		556,300
Maruti Suzuki India Ltd.		13,080		268,843
Tata Motors Ltd.		153,690		647,363

				2,528,765


Banks 1.6%
Axis Bank Ltd.		55,424		988,216
Bank of Baroda		16,200		184,017
Canara Bank		36,188		206,947
HDFC Bank Ltd.		184,210		1,971,585
Housing Development Finance Corp., Ltd.		177,120		2,341,327
ICICI Bank Ltd.		90,616		1,469,649
State Bank of India		25,070		828,088
Union Bank of India Ltd.		43,820		123,484

				8,113,313


Capital Goods 0.4%
Bharat Heavy Electricals Ltd.		122,080		468,019
Cummins India Ltd.		26,160		216,334
Jaiprakash Associates Ltd.		203,394		236,029
Larsen & Toubro Ltd.		41,056		991,175
Siemens Ltd.		13,298		162,098

				2,073,655


Consumer Durables & Apparel 0.1%
Titan Industries Ltd.		106,820		423,151


Diversified Financials 0.4%
Bajaj Holdings & Investment Ltd.		25,070		345,121
IDFC Ltd.		204,048		491,733
Kotak Mahindra Bank Ltd.		54,936		566,989
Power Finance Corp., Ltd.		43,600		125,646
Rural Electrification Corp., Ltd.		43,600		147,907
Shriram Transport Finance Co., Ltd.		8,720		99,569

				1,776,965


Energy 1.3%
Bharat Petroleum Corp., Ltd.		64,092		385,819
Cairn India Ltd. *		40,112		245,215
Coal India Ltd.		87,854		555,079
Hindustan Petroleum Corp., Ltd.		60,604		324,511
Indian Oil Corp., Ltd.		60,168		262,360
Oil & Natural Gas Corp., Ltd.		255,714		1,268,341
Reliance Industries Ltd.		249,256		3,434,244
The Great Eastern Shipping Co., Ltd.		51,884		234,772

				6,710,341


Food, Beverage & Tobacco 0.9%
ITC Ltd.		900,248		4,331,710
Nestle India Ltd.		5,668		472,322

				4,804,032


Household & Personal Products 0.3%
Colgate-Palmolive (India) Ltd.		17,440		378,507
Dabur India Ltd.		34,444		75,885
Hindustan Unilever Ltd.		120,772		1,118,376

				1,572,768


Materials 0.7%
Asian Paints Ltd.		4,696		307,357
Hindalco Industries Ltd.		285,362		532,761
Jindal Steel & Power Ltd.		74,774		473,378
JSW Steel Ltd.		36,624		456,738
Sesa Goa Ltd.		75,210		231,816
Sterlite Industries (India) Ltd. ADR		75,148		530,545
Tata Chemicals Ltd.		58,424		320,242
Tata Steel Ltd.		42,728		277,607
Ultratech Cement Ltd.		15,260		464,700

				3,595,144


Media 0.1%
Zee Entertainment Enterprises Ltd.		114,232		335,662


Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Cipla Ltd.		113,796		770,130
Dr. Reddys Laboratories Ltd.		17,876		539,124
Lupin Ltd.		48,396		516,021
Piramal Healthcare Ltd.		14,170		122,302
Sun Pharmaceutical Industries Ltd.		62,130		746,565

				2,694,142


Real Estate 0.1%
DLF Ltd.		86,546		303,475
Unitech Ltd. *		482,384		159,566

				463,041


Software & Services 1.2%
HCL Technologies Ltd.		42,728		418,177
Infosys Ltd.		91,560		3,887,329
Mphasis Ltd.		13,080		90,437
Satyam Computer Services Ltd. *		40,984		68,706
Tata Consultancy Services Ltd.		53,192		1,284,975
Wipro Ltd. ADR		73,220		569,652

				6,319,276


Telecommunication Services 0.3%
Bharti Airtel Ltd.		265,960		1,184,807
Idea Cellular Ltd. *		288,632		387,351

				1,572,158


Transportation 0.0%
Adani Ports & Special Economic Zone Ltd.		65,400		133,739
Container Corp. Of India Ltd.		4,360		73,401

				207,140

60 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Utilities 0.5%
GAIL India Ltd.		72,376		461,970
NHPC Ltd.		218,000		70,152
NTPC Ltd.		255,714		772,544
Power Grid Corp. of India Ltd.		209,498		449,879
Reliance Infrastructure Ltd.		19,620		156,642
Reliance Power Ltd. *		121,644		166,639
Tata Power Co., Ltd.		218,000		389,951
Torrent Power Ltd.		10,900		29,060

				2,496,837

				45,686,390

Indonesia 3.2%


Automobiles & Components 0.7%
Astra International Tbk PT		4,708,000		3,332,879


Banks 0.9%
Bank Danamon Indonesia Tbk PT		218,000		137,179
PT Bank Central Asia Tbk		2,071,000		1,683,298
PT Bank Mandiri (Persero) Tbk		1,417,459		1,159,537
PT Bank Negara Indonesia (Persero) Tbk		654,316		255,619
PT Bank Rakyat Indonesia (Persero) Tbk		2,180,000		1,588,988

				4,824,621


Capital Goods 0.2%
PT United Tractors Tbk		436,000		916,812


Energy 0.2%
PT Adaro Energy Tbk		2,056,000		295,408
PT Bumi Resources Tbk		3,597,000		264,069
PT Tambang Batubara Bukit Asam (Persero) Tbk		218,000		333,802

				893,279


Food, Beverage & Tobacco 0.3%
Charoen Pokphand Indonesia Tbk PT		1,367,000		387,090
PT Astra Agro Lestari Tbk		98,100		229,432
PT Gudang Garam Tbk		82,840		435,268
PT Indofood Sukses Makmur Tbk		786,400		445,365

				1,497,155


Household & Personal Products 0.1%
PT Unilever Indonesia Tbk		260,000		738,962


Materials 0.2%
PT Indocement Tunggal Prakarsa Tbk		218,000		462,979
PT Semen Gresik (Persero) Tbk		471,000		612,522
PT Vale Indonesia Tbk		545,000		131,463

				1,206,964


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
PT Kalbe Farma Tbk		1,090,000		442,973


Telecommunication Services 0.3%
Indosat Tbk PT		148,000		79,161
PT Telekomunikasi Indonesia (Persero) Tbk		1,744,000		1,701,017

				1,780,178


Transportation 0.1%
Jasa Marga Persero Tbk PT		440,000		265,338


Utilities 0.1%
PT Perusahaan Gas Negara (Persero) Tbk		1,744,000		676,749

				16,575,910

Malaysia 5.0%


Automobiles & Components 0.1%
UMW Holdings Berhad		201,000		656,169


Banks 1.3%
Alliance Financial Group Berhad		352,200		465,542
CIMB Group Holdings Berhad		821,600		2,048,412
Hong Leong Bank Berhad		114,600		492,951
Malayan Banking Berhad		792,000		2,319,347
Public Bank Berhad - Foreign Market		235,200		1,079,458
RHB Capital Berhad		114,600		267,015

				6,672,725


Capital Goods 0.6%
Gamuda Berhad		481,800		531,992
IJM Corp. Berhad		226,500		372,607
Sime Darby Berhad		719,400		2,258,702

				3,163,301


Consumer Services 0.4%
Berjaya Sports Toto Berhad		201,000		283,696
Genting Berhad		460,200		1,328,534
Genting Malaysia Berhad		516,300		583,306

				2,195,536


Diversified Financials 0.1%
AMMB Holdings Berhad		438,600		891,378


Energy 0.1%
Petronas Dagangan Berhad		59,200		424,414


Food, Beverage & Tobacco 0.6%
British American Tobacco Malaysia Berhad		21,800		445,001
Felda Global Ventures Holdings Berhad *		87,200		139,542
IOI Corp. Berhad		790,800		1,300,916
Kuala Lumpur Kepong Berhad		93,000		691,733
PPB Group Berhad		93,000		413,730

				2,990,922


Health Care Equipment & Services 0.1%
IHH Healthcare Berhad *		327,000		334,902


Materials 0.2%
Lafarge Malayan Cement Berhad		65,400		180,010
Petronas Chemicals Group Berhad		457,800		949,446

				1,129,456


Real Estate 0.1%
SP Setia Berhad		363,000		413,596
UEM Land Holdings Berhad *		218,000		129,076

				542,672


Telecommunication Services 0.9%
Axiata Group Berhad		1,056,000		2,024,465

See financial notes 61

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Digi.com Berhad		937,400		1,443,077
Maxis Berhad		373,800		842,231
Telekom Malaysia Berhad		109,000		212,104

				4,521,877


Transportation 0.1%
AirAsia Berhad		283,400		312,924


Utilities 0.4%
Petronas Gas Berhad		130,800		811,299
Tenaga Nasional Berhad		218,250		477,782
YTL Corp. Berhad		837,440		485,123
YTL Power International Berhad		392,400		218,523

				1,992,727

				25,829,003

Mexico 5.9%


Banks 0.6%
Grupo Financiero Banorte S.A.B. de C.V., O Shares		381,600		1,936,499
Grupo Financiero Inbursa S.A.B. de C.V., O Shares		348,800		940,939

				2,877,438


Capital Goods 0.2%
Alfa S.A.B. de C.V., A Shares		34,360		541,813
Grupo Carso S.A.B. de C.V., Series A1		152,600		499,726

				1,041,539


Food & Staples Retailing 0.6%
Organizacion Soriana S.A.B. de C.V., B Shares		29,600		87,800
Wal-Mart de Mexico S.A.B. de C.V., Series V		1,172,800		3,113,370

				3,201,170


Food, Beverage & Tobacco 1.2%
Arca Continental S.A.B. de C.V.		43,600		272,467
Coca-Cola Femsa S.A.B. de C.V., Series L		77,600		941,960
Fomento Economico Mexicano S.A.B. de C.V.		392,600		3,293,089
Grupo Bimbo S.A.B. de C.V., Series A		305,200		660,775
Grupo Modelo S.A.B. de C.V., Series C		109,000		981,625

				6,149,916


Household & Personal Products 0.1%
Kimberly-Clark de Mexico S.A.B. de C.V., A Shares		261,600		525,923


Materials 1.2%
Cemex S.A.B. de C.V., Series CPO *		2,170,400		1,596,364
Grupo Mexico S.A.B. de C.V., Series B		792,000		2,337,284
Industrias Penoles S.A.B. de C.V.		27,250		1,107,330
Mexichem S.A.B. de C.V.		113,297		503,580
Minera Frisco S.A.B. de C.V., Series A1 *		130,800		498,295

				6,042,853


Media 0.4%
Grupo Televisa S.A.B., Series CPO		499,200		2,287,372


Retailing 0.1%
Grupo Elektra S.A. de C.V.		13,200		530,400


Telecommunication Services 1.5%
America Movil S.A.B. de C.V., Series L		5,952,800		7,607,154

				30,263,765

Pakistan 0.0%


Energy 0.0%
Oil & Gas Development Co., Ltd. GDR - Reg’d (c)		9,984		177,715

Peru 0.5%


Banks 0.2%
Credicorp Ltd.		10,132		1,221,210


Materials 0.3%
Companhia de Minas Buenaventura S.A. ADR		42,074		1,458,285

				2,679,495

Philippines 1.0%


Banks 0.2%
Bank of the Philippine Islands		377,379		672,690
BDO Unibank, Inc. *		304,760		442,201

				1,114,891


Capital Goods 0.3%
Aboitiz Equity Ventures, Inc.		305,200		351,805
DMCI Holdings, Inc.		152,600		209,995
San Miguel Corp.		141,700		377,193
SM Investments Corp.		47,960		808,168

				1,747,161


Consumer Services 0.0%
Jollibee Foods Corp.		69,760		165,799


Diversified Financials 0.1%
Ayala Corp.		26,400		257,882


Real Estate 0.2%
Ayala Land, Inc.		872,000		464,237
SM Prime Holdings, Inc.		1,090,000		362,686

				826,923


Telecommunication Services 0.1%
Philippine Long Distance Telephone Co.		8,720		567,862


Utilities 0.1%
Aboitiz Power Corp.		436,000		352,323
Energy Development Corp.		1,876,800		266,745

				619,068

				5,299,586

62 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Poland 1.4%


Banks 0.5%
Bank Handlowy w Warszawie S.A.		9,374		220,910
Bank Pekao S.A.		19,620		890,448
BRE Bank S.A. *		1,308		120,264
Get Bank S.A. *		322,920		145,972
Powszechna Kasa Oszczednosci Bank Polski S.A.		97,446		1,045,438

				2,423,032


Energy 0.2%
Polski Koncern Naftowy Orlen S.A. *		46,434		546,439
Polskie Gornictwo Naftowe I Gazownictwo S.A. *		239,800		294,122

				840,561


Insurance 0.2%
Powszechny Zaklad Ubezpieczen S.A.		10,900		1,134,903


Materials 0.2%
Jastrzebska Spolka Weglowa S.A.		8,800		232,842
KGHM Polska Miedz S.A.		26,392		1,033,156
Synthos S.A.		43,400		71,411

				1,337,409


Telecommunication Services 0.1%
Telekomunikacja Polska S.A.		105,294		526,740


Utilities 0.2%
PGE S.A.		173,092		974,924
Tauron Polska Energia S.A.		95,048		139,781

				1,114,705

				7,377,350

Russia 6.6%


Banks 0.9%
Sberbank of Russia ADR		360,628		4,150,828
VTB Bank OJSC GDR - Reg’d		204,484		668,663

				4,819,491


Energy 3.8%
Gazprom OAO ADR		750,112		7,249,832
LUKOIL OAO ADR		102,242		5,807,346
NovaTek OAO GDR - Reg’d		15,696		1,872,533
Rosneft Oil Co. OJSC GDR - Reg’d		319,344		1,887,323
Surgutneftegas OAO ADR		119,028		1,034,353
Tatneft OAO ADR		44,254		1,689,175

				19,540,562


Food & Staples Retailing 0.3%
Magnit OJSC GDR - Reg’d		53,080		1,692,721


Materials 0.7%
MMC Norilsk Nickel OJSC ADR		82,840		1,212,778
Novolipetsk Steel OJSC GDR - Reg’d		12,644		228,603
Severstal OAO GDR - Reg’d		48,832		553,755
Uralkali OJSC GDR - Reg’d		40,548		1,567,586

				3,562,722


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Pharmstandard OJSC GDR - Reg’d *		5,450		78,753


Real Estate 0.0%
LSR Group GDR - Reg’d		9,680		39,930


Telecommunication Services 0.6%
Mobile TeleSystems OJSC ADR		87,976		1,619,638
Rostelecom OJSC ADR		40,112		918,565
Sistema JSFC GDR - Reg’d		20,644		406,893

				2,945,096


Utilities 0.3%
Federal Hydrogenerating Co. JSC ADR		566,832		1,401,209

				34,080,484

South Africa 10.7%


Banks 1.1%
ABSA Group Ltd.		59,732		1,008,113
Nedbank Group Ltd.		42,510		933,066
Standard Bank Group Ltd.		260,984		3,437,056

				5,378,235


Capital Goods 0.5%
Aveng Ltd.		85,892		313,567
Barloworld Ltd.		38,586		325,041
Bidvest Group Ltd.		57,552		1,392,965
Reunert Ltd.		37,496		316,570

				2,348,143


Consumer Durables & Apparel 0.2%
Steinhoff International Holdings Ltd. *		291,279		907,860


Consumer Services 0.0%
Sun International Ltd.		17,440		175,880


Diversified Financials 1.1%
African Bank Investments Ltd.		130,800		504,360
FirstRand Ltd.		707,192		2,303,188
Investec Ltd.		55,154		333,404
JSE Ltd.		29,032		243,527
Remgro Ltd.		83,930		1,432,939
RMB Holdings Ltd.		159,794		689,341

				5,506,759


Energy 0.9%
Sasol Ltd.		101,588		4,371,954


Food & Staples Retailing 0.6%
Clicks Group Ltd.		41,056		280,088
Massmart Holdings Ltd.		17,282		348,880
Pick n Pay Stores Ltd.		46,216		243,623
Shoprite Holdings Ltd.		89,598		1,796,425
The Spar Group Ltd.		38,804		570,423

				3,239,439


Food, Beverage & Tobacco 0.3%
AVI Ltd.		84,802		583,558
Tiger Brands Ltd.		27,468		902,401

				1,485,959

See financial notes 63

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Health Care Equipment & Services 0.2%
Life Healthcare Group Holdings Ltd.		132,762		502,475
Mediclinic International Ltd.		43,600		226,315
Netcare Ltd.		242,198		503,735

				1,232,525


Insurance 0.5%
Discovery Holdings Ltd.		70,196		480,383
MMI Holdings Ltd.		243,070		561,208
Sanlam Ltd.		362,970		1,592,529

				2,634,120


Materials 1.8%
AECI Ltd.		26,596		261,905
African Rainbow Minerals Ltd.		15,696		273,751
Anglo American Platinum Ltd.		17,004		845,187
AngloGold Ashanti Ltd.		60,822		1,897,075
ArcelorMittal South Africa Ltd. *		27,468		132,313
Exxaro Resources Ltd.		14,606		259,298
Gold Fields Ltd.		126,004		1,510,374
Harmony Gold Mining Co., Ltd.		88,290		714,826
Impala Platinum Holdings Ltd.		102,879		1,623,409
Kumba Iron Ore Ltd.		15,696		893,881
Mondi Ltd.		6,752		60,162
Nampak Ltd.		140,174		449,867
Northam Platinum Ltd.		21,120		67,656
Pretoria Portland Cement Co., Ltd.		102,678		324,048
Sappi Ltd. *		24,048		67,050

				9,380,802


Media 0.7%
Naspers Ltd., N Shares		65,618		3,806,988


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Aspen Pharmacare Holdings Ltd. *		71,504		1,217,481


Real Estate 0.3%
Capital Property Fund		16,568		21,446
Fountainhead Property Trust		287,478		285,824
Growthpoint Properties Ltd.		346,184		1,126,633
Hyprop Investments Ltd.		2,398		20,911

				1,454,814


Retailing 0.9%
Imperial Holdings Ltd.		39,028		945,313
Mr. Price Group Ltd.		43,600		704,035
The Foschini Group Ltd.		48,178		771,671
Truworths International Ltd.		79,570		899,216
Woolworths Holdings Ltd.		150,638		1,072,347

				4,392,582


Telecommunication Services 1.4%
Allied Technologies Ltd.		6,456		31,979
MTN Group Ltd.		334,592		6,232,538
Telkom SA Ltd. *		94,424		215,209
Vodacom Group Ltd.		72,812		924,177

				7,403,903

				54,937,444

Taiwan 13.0%


Automobiles & Components 0.2%
Cheng Shin Rubber Industry Co., Ltd.		302,224		734,597
China Motor Corp.		50,000		45,741
Yulon Motor Co., Ltd.		234,000		425,014

				1,205,352


Banks 1.2%
Chang Hwa Commercial Bank		992,956		512,209
China Development Financial Holding Corp. *		2,421,268		573,971
Chinatrust Financial Holding Co., Ltd.		1,968,380		1,176,388
E.Sun Financial Holding Co., Ltd.		956,093		533,096
First Financial Holding Co., Ltd.		1,069,715		619,664
Hua Nan Financial Holdings Co., Ltd.		1,387,668		745,933
Mega Financial Holding Co., Ltd.		1,570,069		1,182,099
SinoPac Financial Holdings Co., Ltd.		899,049		357,206
Taishin Financial Holding Co., Ltd.		474,326		181,331
Taiwan Cooperative Financial Holding		914,800		502,436

				6,384,333


Capital Goods 0.3%
Far Eastern New Century Corp.		691,592		727,360
Taiwan Glass Industrial Corp.		244,036		242,398
Walsin Lihwa Corp. *		872,000		274,256

				1,244,014


Commercial & Professional Services 0.0%
Taiwan Secom Co., Ltd.		48,000		98,561


Consumer Durables & Apparel 0.2%
Formosa Taffeta Co., Ltd.		218,000		198,704
Giant Manufacturing Co., Ltd.		38,000		191,580
Pou Chen Corp.		452,580		436,699
Tatung Co., Ltd. *		436,000		89,089

				916,072


Diversified Financials 0.4%
Capital Securities Corp.		673,629		228,284
Fubon Financial Holding Co., Ltd.		1,200,078		1,192,024
Yuanta Financial Holding Co., Ltd.		1,773,316		822,981

				2,243,289


Energy 0.2%
Formosa Petrochemical Corp.		296,000		843,992


Food & Staples Retailing 0.1%
President Chain Store Corp.		111,000		591,116


Food, Beverage & Tobacco 0.3%
Uni-President Enterprises Corp.		814,134		1,303,386


Insurance 0.3%
Cathay Financial Holding Co., Ltd.		1,171,551		1,118,706

64 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Shin Kong Financial Holding Co., Ltd. *		1,333,151		360,985

				1,479,691


Materials 2.0%
Asia Cement Corp.		459,187		527,396
China Steel Corp.		1,845,519		1,580,500
Feng Hsin Iron & Steel Co.		60,000		92,751
Formosa Chemicals & Fibre Corp.		684,000		1,765,323
Formosa Plastics Corp.		1,090,000		2,936,897
Nan Ya Plastics Corp.		1,308,000		2,458,696
Oriental Union Chemical Corp.		91,300		102,271
Taiwan Cement Corp.		623,690		677,811
Taiwan Fertilizer Co., Ltd.		82,000		202,324

				10,343,969


Real Estate 0.0%
Cathay Real Estate Development Co., Ltd.		296,000		127,488


Retailing 0.1%
Hotai Motor Co., Ltd.		50,000		360,589


Semiconductors & Semiconductor Equipment 3.5%
Advanced Semiconductor Engineering, Inc.		1,242,488		929,242
Epistar Corp.		89,000		180,668
Inotera Memories, Inc. *		557,000		95,403
Macronix International Co., Ltd.		678,383		183,010
MediaTek, Inc.		218,099		2,330,195
MStar Semiconductor, Inc.		72,255		575,367
Novatek Microelectronics Corp.		41,000		132,099
Siliconware Precision Industries Co. ADR		138,866		773,484
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		830,148		12,203,176
United Microelectronics Corp. ADR		416,598		845,694

				18,248,338


Technology Hardware & Equipment 3.4%
Acer, Inc. *		436,086		385,112
Advantech Co., Ltd.		47,500		164,936
Asustek Computer, Inc.		121,426		1,212,192
AU Optronics Corp. ADR *		152,600		462,378
Catcher Technology Co., Ltd.		108,000		539,080
Cheng Uei Precision Industry Co., Ltd.		70,929		140,906
Chicony Electronics Co., Ltd.		85,956		181,377
Chimei Innolux Corp. *		872,000		278,914
Compal Communications, Inc. *		218,000		238,373
Compal Electronics, Inc.		657,610		576,350
Delta Electronics, Inc.		328,000		1,117,024
Foxconn Technology Co., Ltd.		246,557		938,449
Hon Hai Precision Industry Co., Ltd.		1,931,880		5,469,715
HTC Corp.		142,750		1,229,658
Inventec Corp.		683,145		223,526
Largan Precision Co., Ltd.		12,000		249,608
Lite-On Technology Corp.		438,835		531,126
Nan Ya Printed Circuit Board Corp.		30,000		48,079
Pegatron Corp.		244,441		306,459
Quanta Computer, Inc.		436,000		1,125,265
Synnex Technology International Corp.		224,053		499,708
TPK Holding Co., Ltd.		32,396		418,592
Unimicron Technology Corp.		436,000		495,670
Wistron Corp.		478,891		535,636
Yageo Corp.		320,000		92,097

				17,460,230


Telecommunication Services 0.7%
Chunghwa Telecom Co., Ltd. ADR (a)		63,220		1,899,129
Far EasTone Telecommunications Co., Ltd.		252,000		620,934
Taiwan Mobile Co., Ltd.		279,600		1,036,213

				3,556,276


Transportation 0.1%
China Airlines Ltd. *		338,000		129,779
Eva Airways Corp. *		268,000		150,325
Evergreen Marine Corp., Ltd.		313,199		167,313
U-Ming Marine Transport Corp.		30,000		45,074
Yang Ming Marine Transport Corp.		233,200		93,043

				585,534

				66,992,230

Thailand 2.6%


Banks 0.8%
Bangkok Bank PCL NVDR		87,200		523,172
Kasikornbank PCL NVDR		261,600		1,410,895
Krung Thai Bank PCL NVDR		741,200		392,658
Siam Commercial Bank PCL NVDR		327,000		1,565,342

				3,892,067


Energy 0.6%
Banpu PCL NVDR		21,800		313,069
IRPC PCL NVDR		2,637,800		316,519
PTT Exploration & Production PCL NVDR		218,000		1,036,605
PTT PCL NVDR		130,800		1,377,501
Thai Oil PCL NVDR		87,200		182,275

				3,225,969


Food & Staples Retailing 0.2%
Big C Supercenter PCL NVDR		43,600		248,368
CP ALL PCL NVDR		849,600		935,414

				1,183,782


Food, Beverage & Tobacco 0.1%
Charoen Pokphand Foods PCL NVDR		675,800		684,750


Health Care Equipment & Services 0.0%
Bangkok Dusit Medical Services PCL NVDR		59,200		195,538


Materials 0.3%
Indorama Ventures PCL NVDR		218,000		200,016
PTT Global Chemical PCL NVDR		225,014		448,807
Siam Cement PCL NVDR		65,400		692,925

				1,341,748

See financial notes 65

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Media 0.1%
BEC World PCL NVDR		152,600		253,238


Real Estate 0.1%
Central Pattana PCL NVDR		87,200		146,794
Land & Houses PCL NVDR		436,000		112,705

				259,499


Telecommunication Services 0.3%
Advanced Info Service PCL NVDR		196,200		1,358,717
Total Access Communication PCL NVDR		65,400		182,101

				1,540,818


Transportation 0.0%
Airports of Thailand PCL NVDR		65,400		140,359
Thai Airways International PCL NVDR *		65,400		42,995

				183,354


Utilities 0.1%
Electricity Generating PCL NVDR		43,600		166,970
Glow Energy PCL NVDR		97,900		195,269

				362,239

				13,123,002

Turkey 2.0%


Automobiles & Components 0.0%
Ford Otomotiv Sanayi A/S		15,260		149,826


Banks 0.9%
Akbank T.A.S.		261,420		1,032,422
Turkiye Garanti Bankasi A/S		262,908		1,127,957
Turkiye Halk Bankasi A/S		82,186		741,371
Turkiye Is Bankasi, C Shares		262,908		801,139
Turkiye Vakiflar Bankasi Tao, D Shares		186,504		422,649
Yapi ve Kredi Bankasi A/S *		169,386		395,037

				4,520,575


Capital Goods 0.2%
Dogan Sirketler Grubu Holdings A/S *		304,096		140,502
Enka Insaat ve Sanayi A/S		41,589		115,293
KOC Holding A/S		156,110		635,414

				891,209


Consumer Durables & Apparel 0.1%
Arcelik A/S		32,482		179,736
Turkiye Sise ve Cam Fabrikalari A/S		67,660		99,366

				279,102


Diversified Financials 0.1%
Haci Omer Sabanci Holding A/S		129,320		556,246


Energy 0.1%
Tupras-Turkiye Petrol Rafinerileri A/S		20,492		468,891


Food & Staples Retailing 0.1%
BIM Birlesik Magazalar A/S		15,696		645,349


Food, Beverage & Tobacco 0.1%
Anadolu Efes Biracilik ve Malt Sanayii A/S		40,984		572,588


Materials 0.1%
Eregli Demir ve Celik Fabrikalari T.A.S.		315,637		352,434


Real Estate 0.0%
Emlak Konut Gayrimenkul Yatirim Ortakligi A/S		135,160		197,753


Telecommunication Services 0.2%
Turk Telekomunikasyon A/S		130,496		516,802
Turkcell Iletisim Hizmetleri A/S *		127,966		760,173

				1,276,975


Transportation 0.1%
Turk Hava Yollari Anonim Ortakligi *		158,268		313,393

				10,224,341

United Arab Emirates 0.3%


Banks 0.1%
Abu Dhabi Commercial Bank PJSC		92,088		84,491
First Gulf Bank PJSC		120,000		311,680

				396,171


Diversified Financials 0.0%
Dubai Financial Market *		253,255		65,227


Energy 0.0%
Dana Gas PJSC *		460,448		47,637


Real Estate 0.1%
Aldar Properties PJSC		192,704		62,958
Emaar Properties PJSC		495,540		446,566

				509,524


Transportation 0.1%
DP World Ltd.		47,512		484,623

				1,503,182

Total Common Stock
(Cost $513,775,712)				477,817,874



Security	Face Amount		Value
Rate, Maturity Date	(local currency)		($)

Corporate Bonds 0.0% of net assets

India 0.0%


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Dr. Reddy’s Laboratories Ltd. 9.25%, 03/24/14 (INR)		285,360		257

Total Corporate Bond
(Cost $752)				257

66 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Preferred Stock 6.7% of net assets

Brazil 6.6%


Banks 1.6%
Itau Unibanco Holding S.A. ADR		361,448		5,714,493
Itausa - Investimentos Itau S.A.		494,847		2,280,288

				7,994,781


Energy 1.8%
Petroleo Brasileiro S.A. ADR		450,388		9,268,985


Food & Staples Retailing 0.2%
Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR		21,800		934,784


Food, Beverage & Tobacco 1.3%
Companhia de Bebidas das Americas ADR		175,944		6,617,254


Materials 1.4%
Bradespar S.A.		43,600		569,429
Klabin S.A.		109,000		488,849
Metalurgica Gerdau S.A.		43,600		477,461
Usinas Siderurgicas de Minas Gerais S.A., A Shares		87,200		350,253
Vale S.A. ADR		333,322		5,373,151

				7,259,143


Retailing 0.1%
Lojas Americanas S.A.		96,562		695,286


Utilities 0.2%
AES Tiete S.A.		21,800		298,145
Centrais Eletricas Brasileiras S.A. ADR		47,524		430,092
Cia de Transmissao de Energia Electrica Paulista		4,159		92,443
Companhia Energetica de Sao Paulo, B Shares		21,800		337,897

				1,158,577

				33,928,810

Chile 0.0%


Food, Beverage & Tobacco 0.0%
Embotelladora Andina S.A., B Shares		20,274		110,850

Colombia 0.1%


Diversified Financials 0.0%
Grupo de Inversiones Suramericana S.A.		5,872		104,370


Materials 0.1%
Inversiones Argos S.A.		13,516		130,417

				234,787

Total Preferred Stock
(Cost $44,216,997)				34,274,447




Rights 0.0% of net assets

Thailand 0.0%


Diversified Financials 0.0%
KTB Investment & Securities Co., Ltd. *(c)(d)		185,300		23,654

Total Rights
(Cost $—)				23,654




Other Investment Company 0.2% of net assets

United States 0.2%
State Street Institutional U.S. Government Money Market Fund		1,195,351		1,195,351

Total Other Investment Company
(Cost $1,195,351)				1,195,351



End of Investments



Collateral Invested for Securities on Loan 0.9% of net assets


State Street Institutional U.S. Government Money Market Fund		4,594,077		4,594,077

Total Collateral Invested for Securities on Loan
(Cost $4,594,077)				4,594,077



End of Collateral Invested for Securities on Loan

At 08/31/12, the tax basis cost of the fund’s investments was $561,015,599 and the unrealized appreciation and depreciation were $34,899,106 and ($82,603,122), respectively, with a net unrealized depreciation of ($47,704,016).


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $82,578 or 0.0% of net assets.
(c)		Illiquid security. At the period end, the value of these amounted to $283,947 or 0.1% of net assets.
(d)		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
INR —		Indian Rupee

See financial notes 67

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2012 (see financial note 2(a) for additional information):


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

Common Stock¹		$477,817,874		$—		$—		$477,817,874
Corporate Bonds¹		—		257		—		257
Preferred Stock¹		34,274,447		—		—		34,274,447
Rights¹		—		—		23,654		23,654
Other Investment Company¹		1,195,351		—		—		1,195,351

Total		$513,287,672		$257		$23,654		$513,311,583

Other Financial Instruments
Collateral Invested for Securities on Loan		$4,594,077		$—		$—		$4,594,077


¹		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

Balance

Change in

Balance

as of

Realized

Unrealized

Gross

as of

August 31,

Gains

Gross

Transfers

August 31,

Investments in Securities

2011

(Losses)

Purchases

Sales

out

2012

Rights

$—

$23,654

$—

$23,654

Total

$—

$23,654

$—

$23,654

All net realized and change in unrealized gains (losses) on Level 3 investments in the tables above are reflected on the accompanying Statement of Operations. Changes in net unrealized gains (losses) for Level 3 investments held by the fund at August 31, 2012 are $23,654.

68 See financial notes

Schwab Emerging Markets Equity ETF

Statement of

Assets and Liabilities

As of August 31, 2012



Assets

Investments, at value (cost $559,188,812) including securities on loan of $4,308,511		$513,311,583
Collateral invested for securities on loan		4,594,077
Foreign currency, at value (cost $600,597)		599,646
Receivables:
Dividends		1,686,519
Income from securities on loan		7,409
Foreign tax reclaims		731
Interest	+	237

Total assets		520,200,202

Liabilities

Collateral held for securities on loan		4,594,077
Payables:
Investments bought		12
Investment adviser fees	+	10,627

Total liabilities		4,604,716

Net Assets

Total assets		520,200,202
Total liabilities	—	4,604,716

Net assets		$515,595,486

Net Assets by Source
Capital received from investors		570,223,194
Net investment income not yet distributed		11,484,623
Net realized capital losses		(20,232,668	)
Net unrealized capital losses		(45,879,663	)

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$515,595,486

21,800,000

$23.65

See financial notes 69

Schwab Emerging Markets Equity ETF

Statement of

Operations

For September 1, 2011 through August 31, 2012



Investment Income

Dividends (net of foreign withholding tax of $1,726,010)		$15,121,308
Interest (net of foreign withholding tax of $71)		1,903
Securities on loan	+	121,678

Total investment income		15,244,889

Expenses

Investment adviser fees		1,187,474

Total expenses	−	1,187,474

Net investment income		14,057,415

Realized and Unrealized Gains (Losses)

Net realized losses on investments (net of foreign capital gains tax of $2,651)		(16,191,170	)
Net realized gains on in-kind redemptions		2,277,963
Net realized losses on foreign currency transactions*	+	(221,610	)

Net realized losses		(14,134,817	)
Net unrealized losses on investments (net of foreign capital gains tax of $177,964)		(31,224,070	)
Net unrealized losses on foreign currency translations	+	(2,900	)

Net unrealized losses	+	(31,226,970	)

Net realized and unrealized losses		(45,361,787	)

Net decrease in net assets resulting from operations		($31,304,372	)


*		Includes foreign currency acquisition costs on Brazilian real of $73,205

70 See financial notes

Schwab Emerging Markets Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/11-8/31/12				9/1/10-8/31/11
Net investment income		$14,057,415			$9,204,802
Net realized losses		(14,134,817	)		(3,072,159	)
Net unrealized losses	+	(31,226,970	)		(12,954,201	)

Net decrease in net assets resulting from operations		(31,304,372	)		(6,821,558	)

Distributions to Shareholders

Distributions from net investment income		($9,535,681	)		($2,235,300	)

Transactions in Fund Shares

9/1/11-8/31/12

9/1/10-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares sold

7,800,000

$186,779,297

9,600,000

$269,795,240

Shares redeemed

(1,200,001

)

(27,004,871

)

(500,000

)

(12,298,874

)

Net transactions in fund shares

6,599,999

$159,774,426

9,100,000

$257,496,366

Shares Outstanding and Net Assets

9/1/11-8/31/12

9/1/10-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

15,200,001

$396,661,113

6,100,001

$148,221,605

Total increase

6,599,999

118,934,373

9,100,000

248,439,508

End of period

21,800,000

$515,595,486

15,200,001

$396,661,113

Net investment income not yet distributed

$11,484,623

$7,150,418

See financial notes 71

Schwab International ETFs

Financial Notes

1. Business Structure of the Funds



Schwab Strategic Trust (organized January 27, 2009)		Schwab U.S. Mid-Cap ETF
Schwab International Equity ETF		Schwab U.S. Small-Cap ETF
Schwab International Small-Cap Equity ETF		Schwab U.S. Dividend Equity 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 Short-Term U.S. Treasury ETF
Schwab U.S. Large-Cap Growth ETF		Schwab Intermediate-Term U.S. Treasury ETF
Schwab U.S. Large-Cap Value ETF		Schwab U.S. Aggregate Bond ETF

The funds issue and redeem shares at their net assets value per share (“NAV”) only in large blocks of shares, typically 100,000 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 or large investors purchase or redeem Creation Units. Except when aggregated in Creation Units, shares of the fund are not redeemable securities.

2. Significant Accounting Policies:

(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 at halfway between the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.

	•	Securities for which no quoted value is available: The Board 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 it 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; or 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 Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activity, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing

Schwab International ETFs

Financial Notes (continued)

2. Significant Accounting Policies (continued):


		Committee regularly reviews these inputs and assumptions to calibrate the valuations. The Board convenes on a regular basis to review fair value determinations made by the funds pursuant to the procedures.


	•	Bonds and notes: valued 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.

	•	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.

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 prices for such investments, even in situations where the funds hold a large position and a sale could reasonably impact the quoted price. Investments in underlying funds are valued at their NAV daily and are classified as Level 1 prices.

	•	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 levels associated with valuing the funds’ investments as of August 31, 2012 are disclosed in the Portfolio Holdings.

(b) Accounting Policies for certain Portfolio Investments (if held):

Schwab International ETFs

Financial Notes (continued)

2. Significant Accounting Policies (continued):

If applicable, the value of the securities on loan as of August 31, 2012 and the value of the related collateral are disclosed in the Portfolio Holdings and the Statement of Assets and Liabilities.

(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.

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. These realized and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations on the Statement of Operations. 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. In those instances, the funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.

(d) Investment Income:

(e) Expenses:

Expenses that are specific to a fund are charged directly to the fund.

(f) Distributions to Shareholders:

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

(g) Accounting Estimates:

Schwab International ETFs

Financial Notes (continued)

2. Significant Accounting Policies (continued):

(h) Federal Income Taxes:

(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 August 31, 2012, if any, are reflected in the funds’ Statements of Assets and Liabilities.

(j) Indemnification:

(k) New Accounting Pronouncements:

3. Risk Factors:

Certain funds invest in large- and mid-cap stocks. Both large- and mid-cap stocks tend to go in and out of favor based on market and economic conditions. However, stocks of mid-cap companies tend to be more vulnerable to adverse business or economic events than larger more established companies. During a period when large- and mid-cap U.S. stocks fall behind other types of investments — small-cap stocks, for instance — a fund’s large- and mid-cap holdings could reduce performance.

Schwab International ETFs

Financial Notes (continued)

3. Risk Factors (continued):

A fund’s investments in securities of foreign issuers may 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; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may be heightened in connection with investments in emerging markets. Foreign securities also include ADRs, GDRs, and EDRs, which are receipts issued by U.S. and foreign banks that represent shares of foreign-based corporations. 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.

Certain funds invest in emerging markets. Emerging markets 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 and greater risk associated with the custody of securities. It is sometimes difficult to obtain and enforce court judgments in such countries, and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers (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 a fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar.

To the extent a fund uses statistical sampling techniques, the fund may not fully replicate the index and may hold securities not included in the index. As a result, a fund is subject to the risk that the adviser’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. If a fund uses a sampling approach it may not track the return of the index as well as it would if a fund purchased all of the securities in its benchmark index.

Each fund may invest in derivative instruments. The principal types of derivatives a fund may use are futures contracts. A futures contract is an agreement to buy or sell a financial instrument at a specific price on a specific day. 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. Certain of these risks, such as market risk and liquidity risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to leverage risk, credit risk, lack of availability risk, valuation risk, correlation risk and tax risk. Leverage risk is the risk that use of derivatives may magnify the effect of any decrease or increase in the value of the fund’s portfolio securities. Credit risk is the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause a fund to realize higher amounts of short-term capital gain. These risks could cause a fund to lose more than the principal amount invested.

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

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.

Schwab International ETFs

Financial Notes (continued)

3. Risk Factors (continued):

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 more complete description of the principal risks of investing in the funds.

4. Affiliates and Affiliated Transactions:

For its advisory services to the following funds, CSIM is entitled to receive an annual fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:


		Schwab		Schwab
Schwab		International		Emerging
International		Small-Cap		Markets
Equity ETF		Equity ETF		Equity ETF

	0.13%		0.35%		0.25%

Subsequent to the reporting period ended August 31, 2012, and effective September 20, 2012, the management fee of each fund has been reduced as follows:


		Schwab		Schwab
Schwab		International		Emerging
International		Small-Cap		Markets
Equity ETF		Equity ETF		Equity ETF

	0.09%		0.20%		0.15%

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

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 August 31, 2012, there were no transactions involving affiliates.

Schwab International ETFs

Financial Notes (continued)

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. Borrowing from Banks:

8. Purchases and Sales/Maturities of Investment Securities:

For the period ended August 31, 2012, 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		$74,259,096		$52,366,879
Schwab International Small-Cap Equity ETF		41,142,402		37,723,487
Schwab Emerging Markets Equity ETF		103,918,732		43,031,266

9. In-Kind Transactions:

The in-kind transactions for the period ended August 31, 2012 were as follows:


	In-kind Purchases of Securities		In-kind Sales of Securities

Schwab International Equity ETF		$138,562,880		$—
Schwab International Small-Cap Equity ETF		20,513,159		10,069,724
Schwab Emerging Markets Equity ETF		122,406,348		17,783,532

Schwab International ETFs

Financial Notes (continued)

10. Federal Income Taxes

As of August 31, 2012, the components of distributable earnings on a tax-basis were as follows:


				Schwab			Schwab
	Schwab			International			Emerging
	International			Small-Cap			Markets
	Equity ETF			Equity ETF			Equity ETF

Undistributed ordinary income		$19,101,601			$4,190,265			$12,058,836
Undistributed long-term capital gains		—			—			—
Unrealized appreciation		65,911,759			16,542,098			34,899,106
Unrealized depreciation		(94,720,939	)		(27,284,271	)		(82,603,122	)
Other unrealized appreciation/(depreciation)		(1,113	)		7,001			(2,434	)

Net unrealized appreciation/(depreciation)		(28,810,293	)		(10,735,172	)		(47,706,450	)

The primary difference between book-basis and tax-basis unrealized appreciation or unrealized depreciation of investments is the tax deferral of losses on wash sales and Passive Foreign Investment Companies (PFIC).

Schwab

International

Emerging

International

Small-Cap

Markets

Expiration Date

Equity ETF

August 31, 2019

$2,345,874

$215,545

$1,091,404

No expiration

5,735,648

3,734,494

4,557,003

Total

$8,081,522

$3,950,039

$5,648,407

Schwab

International

Emerging

International

Small-Cap

Markets

Equity ETF

Deferred capital losses

$16,186,912

$6,450,568

$13,331,689

The tax-basis components of distributions paid during the current and prior fiscal years were:


			Schwab		Schwab
	Schwab		International		Emerging
	International		Small-Cap		Markets
	Equity ETF		Equity ETF		Equity ETF

Current period distributions
Ordinary Income		$19,440,541		$4,859,831		$9,535,681
Long-term capital gains		—		—		—

Prior period distributions
Ordinary Income		7,027,040		2,126,721		2,235,300
Long-term capital gains		—		—		—

Schwab International ETFs

Financial Notes (continued)

10. Federal Income Taxes (continued):

which the net investment income and net realized gains are recorded by the funds for financial reporting purposes. The funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.


				Schwab			Schwab
	Schwab			International			Emerging
	International			Small-Cap			Markets
	Equity ETF			Equity ETF			Equity ETF

Capital shares		$—			$2,052,221			$2,248,286
Undistributed net investment income		(273,517	)		233,680			(187,529	)
Net realized gains and losses		273,517			(2,285,901	)		(2,060,757	)

Schwab

International

Emerging

International

Small-Cap

Markets

Equity ETF

$—

$2,225,079

$2,277,963

Certain of the enacted provisions include:

The funds have adopted the noted provisions of the Act for the period ending August 31, 2012.

11. Subsequent Events:

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of:

Schwab International Equity ETF

Schwab International Small-Cap Equity ETF

Schwab Emerging Markets Equity ETF

In our opinion, the accompanying statements of assets and liabilities, including the portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Schwab International Equity ETF, Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF (three of the funds constituting Schwab Strategic Trust, hereafter referred to as the “Funds”) at August 31, 2012, and the results of their operations for the year then ended, changes in their net assets for each of the two years in the period then ended and the financial highlights for each of the three years or periods in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2012 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 18, 2012

Other Federal Tax Information (unaudited)

The funds may elect to pass on the benefits of the foreign tax credit to its shareholders for the period ended August 31, 2012, and the respective foreign source income on the funds as follows:


	Foreign Tax Credit		Foreign Source Income

Schwab International Equity ETF		$1,662,947		$25,957,482
Schwab International Small-Cap Equity ETF		282,713		4,769,916
Schwab Emerging Markets Equity ETF		1,540,675		16,847,317


Schwab International Equity ETF			$17,005,828
Schwab International Small-Cap Equity ETF			4,720,032
Schwab Emerging Markets Equity ETF			9,535,681

Other Information (unaudited)

Frequency Distribution of Discounts and Premiums

Bid/Offer Midpoint vs. NAV as of August 31, 2012


	Bid/Offer Midpoint Above NAV						Bid/Offer Midpoint Below NAV
	50-99		100-199		>200		50-99		100-199		>200
	Basis Points		Basis Points		Basis Points		Basis Points		Basis Points		Basis Points

Schwab International Equity ETF
Commencement of trading 11/3/09 through 8/31/12		272		99		10		42		18		2

Schwab International Small-Cap Equity ETF
Commencement of trading 1/14/10 through 8/31/12		227		109		1		44		20		5

Schwab Emerging Markets Equity ETF
Commencement of trading 1/14/10 through 8/31/12		184		151		14		42		20		6

Investment Advisory Agreement Approval

The Board of Trustees (the “Board” or the “Trustees”, as appropriate) calls and holds a meeting each year that is dedicated, in part, to considering whether to renew the investment advisory agreement between Schwab Strategic Trust (the “Trust”) and Charles Schwab Investment Management, Inc. (“CSIM”) (the “Agreement”) with respect to the existing funds in the Trust, including Schwab International Equity ETF, Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF (the “Funds”), and to review certain other agreements pursuant to which CSIM provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by CSIM, including information about CSIM’s affiliates, personnel and operations. The Board also receives extensive data provided by third parties. This information is in addition to the detailed information about the Fund that the Board reviews during the course of each year, including information that relates to Fund operations and Fund performance. In addition, the Independent Trustees meet in executive session outside the presence of fund management and participate in question and answer sessions with representatives of CSIM.


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

2.	each Fund’s investment performance and how it compared to that of certain other comparable exchange-traded funds;

3.	each Fund’s 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 the Funds, including both direct and indirect benefits accruing to CSIM and its affiliates; and

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

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 (January 2009 – present). 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).	17	Director, PS Business Parks, Inc. (2005 – Feb. 2012). Trustee, PIMCO Funds (investment company consisting of 84 portfolios) (1997 – 2008). Trustee, PIMCO Variable Insurance Trust (investment company consisting of 16 portfolios) (1997 – 2008). Director and Chairman, PIMCO Strategic Global Government Fund (investment company consisting of one portfolio) (1997 – 2008). Director, PCM 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, Inc. (certified public accountants and advisers) (May 1987 – present).	17	None


Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Advisor (January 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).	17	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.	91	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 – Oct. 2011), Charles Schwab Investment Management, Inc.; President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; 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 Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust (June 2006 – June 2007).


Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President and Chief Investment Officer — Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer — Equities, Schwab Funds and Laudus Funds (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009).


Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds and Laudus Funds (June 2011 – present); Senior Managing Director, Global Head of Active Fixed Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies, Loomis, Sayles & Company (April 2006 – Jan. 2008); Managing Director, Head of Market-Based Strategies State Street Research (August 2003 – Jan. 2005).

Officers of the Trust (continued)


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

David Lekich 1964 Secretary and Chief Legal Officer (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President, Charles Schwab & Co., Inc. (Sept. 2011 – present); Senior Vice President and Chief Counsel, Charles Schwab Investment Management Inc. (Sept. 2011 – present); Vice President, Charles Schwab & Co., Inc., (March 2004 – Sept. 2011) and Charles Schwab Investment Management, Inc. (Jan 2011 – Sept. 2011); Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds (April 2011 – present); Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.


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 (March 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary, 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 owns stock of The Charles Schwab Corporation, the parent company of the investment adviser.
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.

ask See “offer.”

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.

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

cap, capitalization See “market cap.”

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

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

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.

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.

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.

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.

PRIVACY NOTICE
THIS IS NOT PART OF THE SHAREHOLDER REPORT

A Commitment to Your Privacy

Your Privacy Is Not for Sale

We do not and will not sell your personal information to anyone, for any reason.

How We Collect Information About You

We collect personal information about you in a number of ways.


•	APPLICATION AND REGISTRATION INFORMATION.


•	TRANSACTION AND EXPERIENCE INFORMATION.


•	WEBSITE USAGE.

How We Share and Use Your Information

We provide access to information about you to our affiliated companies, outside companies and other third parties in certain limited circumstances, including:


•	to help us process transactions for your account;

•	when we use other companies to provide services for us, such as printing and mailing your account statements;

•	when we believe that disclosure is required or permitted under law (for example, to cooperate with regulators or law enforcement, resolve consumer disputes, perform credit/authentication checks, or for risk control).

State Laws

We will comply with state laws that apply to the disclosure or use of information about you.

Safeguarding Your Information — Security Is a Partnership

We take precautions to ensure the information we collect about you is protected and is accessed only by authorized individuals or organizations.

We restrict access to personal information by our employees and agents. Our employees are trained about privacy and are required to safeguard personal information.

We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

Contact Us

To provide us with updated information, report suspected fraud or identity theft, or for any other questions, please call the number below.

Schwab ETF^tm direct investors: 1-800-435-4000

Notes

Proxy Voting Policies, Procedures and Results

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. Dividend Equity 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 U.S. Aggregate Bond ETF^tm

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.

MFR57933-02

00088951


Item 2:	Code of Ethics.

(a)

Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other persons who perform a similar function, regardless of whether these individuals are employed by Registrant or a third party.

(c)

During the period covered by the report, no amendments were made to the provisions of this code of ethics.

(d)

During the period covered by the report, Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics.

(f)(1)

Registrant has filed this code of ethics as an exhibit pursuant to Item 12(a)(1) of Form N-CSR.


Item 3:	Audit Committee Financial Expert.

Registrant’s Board of Trustees has determined that Mark A. Goldfarb, currently serving on its audit committee, is an “audit committee financial expert,” as such term is defined in Item 3 of Form N-CSR. Each member of Registrant’s audit committee is “independent” under the standards set forth in Item 3 of Form N-CSR.

The designation of Mr. Goldfarb as an “audit committee financial expert” pursuant to Item 3 of Form N-CSR does not (i) impose upon such individual any duties, obligations, or liability that are greater than the duties, obligations and liability imposed upon such individual as a member of Registrant’s audit committee or Board of Trustees in the absence of such designation; and (ii) affect the duties, obligations or liability of any other member of Registrant’s audit committee or Board of Trustees.


Item 4:	Principal Accountant Fees and Services.

Registrant is composed of fifteen series. Ten series have a fiscal year-end of August 31, whose annual financial statements are reported in Item 1, and four series has a fiscal year-end of December 31. Principal accountant fees disclosed in Items 4(a)-(d) and 4(g) include fees billed for services rendered to each of the fifteen series, based on their respective 2012 and 2011 fiscal years, as applicable.

(a) Below are the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of Registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements.

Audit Fees

2012: $225,950 2011: $151,783

(b) Below are the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of Registrant’s financial statements and are not reported under paragraph (a) above.

Audit-Related Fees

For services rendered to Registrant:

2012: $31,336 2011: $20,009

Nature of these services: tax provision review.

In each of the last two fiscal years there were no “Audit-Related Fees” required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

(c) Below are the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning.

Tax Fees

For services rendered to Registrant:

2012: $109,088 2011: $73,360

Nature of these services: preparation and review of tax returns.

In each of the last two fiscal years there were no “Tax Fees” required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X

(d) Below are the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) above.

		All Other Fees

		For services rendered to Registrant:

2012: None 2011: None

In each of the last two fiscal years there were no “All Other Fees” required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

(e)(1) Registrant’s audit committee does not have pre-approval policies and procedures as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

(2) There were no services described in each of paragraphs (b) through (d) above (including services required to be approved by Registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by Registrant’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g) Below are the aggregate non-audit fees billed in each of the last two fiscal years by Registrant’s principal accountant for services rendered to Registrant, to Registrant’s investment adviser, and to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant.

2012: $140,424 2011: $93,369

(h) During the past fiscal year, all non-audit services provided by Registrant’s principal accountant to either Registrant’s investment adviser or to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant were pre-approved. Included in the audit committee’s pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant’s independence.


Item 5:	Audit Committee of Listed Registrants.

The Registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act and has separately-designated standing audit committee established in accordance with Section 3(a)58)(A) of the Exchange Act. The Registrant’s audit committee members are Robert W. Burns, Mark A. Goldfarb, and Charles A. Ruffel.


Item 6:	Schedule of Investments.

The schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form.


Item 7:	Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.


Item 8:	Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.


Item 9:	Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.


Item 10:	Submission of Matters to a Vote of Security Holders.

Not applicable.


Item 11:	Controls and Procedures.

(a)

Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, Marie Chandoha and Registrant’s Principal Financial Officer, George Pereira, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above.

(b)

During the second fiscal quarter of the period covered by this report, there have been no changes in Registrant’s internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting.


Item 12:	Exhibits.

(a)(1)

Registrant’s code of ethics (that is the subject of the disclosure required by Item 2(a)) is attached.

(2)	Separate certifications for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the 1940 Act, are attached.

(3)	Not applicable.

(b)	A certification for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, is attached. This

certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. section 1350 and is not being filed as part of the Form N-CSR with the Commission.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(Registrant) Schwab Strategic Trust

By:		/s/ Marie Chandoha Marie Chandoha
		Chief Executive Officer

Date:		10/15/2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By:		/s/ Marie Chandoha Marie Chandoha
		Chief Executive Officer

Date:		10/15/2012

By:		/s/ George Pereira
		George Pereira
		Principal Financial Officer

Date:		10/12/2012

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