Schwab U.S. Small-Cap ETF NCSR Certified 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, 2013

Item 1: Report(s) to Shareholders.

Annual report dated August 31, 2013, enclosed.

Schwab U.S. Equity 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. Equity ETFs

Annual Report

August 31, 2013

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™		44
Schwab U.S. Large-Cap Growth ETF™		57
Schwab U.S. Large-Cap Value ETF™		67
Schwab U.S. Mid-Cap ETF™		76
Schwab U.S. Small-Cap ETF™		87
Schwab U.S. Dividend Equity ETF™		109
Financial Notes		116
Report of Independent Registered Public Accounting Firm		125
Other Federal Tax Information		126
Other Information		127
Trustees and Officers		128
Glossary		131
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 12 Months Ended August 31, 2013

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


Market Price Return¹			20.06%
NAV Return¹			20.12%
Dow Jones U.S. Broad Stock Market Index			20.10%
ETF Category: Morningstar Large Blend²			19.40%


Performance Details			pages 6-7




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


Market Price Return¹			19.14%
NAV Return¹			19.17%
Dow Jones U.S. Large-Cap Total Stock Market Index			19.25%
ETF Category: Morningstar Large Blend²			19.40%


Performance Details			pages 8-9




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


Market Price Return¹			17.82%
NAV Return¹			18.02%
Dow Jones U.S. Large-Cap Growth Total Stock Market Index			18.12%
ETF Category: Morningstar Large Growth²			19.29%


Performance Details			pages 10-11




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


Market Price Return¹			20.09%
NAV Return¹			20.06%
Dow Jones U.S. Large-Cap Value Total Stock Market Index			20.23%
ETF Category: Morningstar Large Value²			19.65%


Performance Details			pages 12-13




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


Market Price Return¹			26.18%
NAV Return¹			26.27%
Dow Jones U.S. Mid-Cap Total Stock Market Index			26.38%
ETF Category: Morningstar Mid-Cap Blend²			25.73%


Performance Details			pages 14-15




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


Market Price Return¹			27.33%
NAV Return¹			27.47%
Dow Jones U.S. Small-Cap Total Stock Market Index			27.50%
ETF Category: Morningstar Small Blend²			28.10%


Performance Details			pages 16-17




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


Market Price Return¹			18.77%
NAV Return¹			18.93%
Dow Jones U.S. Dividend 100^tm Index			19.04%
ETF Category: Morningstar Large Blend²			19.40%


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.

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

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. Shares are bought and sold at market price, which may be higher or lower than the net asset value (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. Equity 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.


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 U.S. Equity 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 goals, and for reading this annual report concerning the Schwab U.S. Equity ETFs. These funds are part of our line-up of core investment solutions and are available at some of the lowest operating expense ratios in the industry. The funds are designed to track market-leading U.S. stock indices and provide the benefits of an ETF, including transparency, trading flexibility, and potential tax efficiency.

For the 12 months ended August 31, 2013, the funds generated returns that were closely aligned with their respective indices, and reflected a remarkable rally by U.S. stocks. The backdrop for these results included efforts by the Federal Reserve to stimulate the U.S. economy by attempting to hold down interest rates. Encouraged by developments such as an improving housing market, the Fed revealed in May that it was starting to consider “tapering” some of its stimulative policies. Market volatility and bond yields rose in response, and income-oriented stocks suffered sharp subsequent losses.

Amid this environment, small- and mid-cap stocks solidly outperformed large-cap stocks, while value stocks outperformed growth stocks. From a sector standpoint, shares of companies in the Consumer Discretionary and Health Care sectors were generally some of the better performers, while shares of companies involved in Information Technology and Telecommunication Services underperformed by comparison. Reflecting the overall performance of

Asset Class Performance Comparison % returns during the 12 months ended 8/31/2013

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



		18.70%		S&P 500^® Index: measures U.S. large-cap stocks

		26.27%		Russell 2000^® Index: measures U.S. small-cap stocks

		18.66%		MSCI EAFE^® Index (Net): measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East

		−2.47%		Barclays U.S. Aggregate Bond Index: measures the U.S. bond market

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

These figures assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and you cannot invest in them directly. Remember that past performance is not an indication of future results.

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

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

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

Schwab U.S. Equity ETFs 3

From the President continued

For the 12 months ended August 31, 2013, the funds generated returns that were closely aligned with their respective indices, and reflected a remarkable rally by U.S. stocks.

the U.S. stock market, the Dow Jones U.S. Broad Stock Market Index returned 20.1% for the 12 months ending August 31, 2013.

For more information about the Schwab U.S. Equity ETFs, please continue reading this report. In addition, you can find further details about these ETFs and about ETF investing by visiting www.schwabetfs.com, or by contacting us at 1-800-435-4000.

Sincerely,

4 Schwab U.S. Equity ETFs

Fund Management



		Agnes Hong, CFA, Managing Director and Head of Passive Equity Strategies, leads the portfolio management teams of Schwab’s index mutual funds and equity ETFs. She also has overall responsibility for all aspects of the management of the funds. Prior to joining CSIM in 2009, Ms. Hong spent five years as a portfolio manager at Barclays Global Investors (subsequently acquired by BlackRock), where she managed institutional index funds and quantitative active funds. Prior to that, Ms. Hong worked in management consulting and product management, servicing global financial services clients.

		Ferian Juwono, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors), where he spent over three years as a portfolio manager, managing equity index funds for institutional clients, and nearly two years as a senior business analyst. Prior to that, Mr. Juwono worked for over four years as a senior financial analyst with Union Bank of California.

		Chuck Craig, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2012, Mr. Craig worked at Guggenheim Funds (formerly Claymore Group), where he spent over five years as a managing director of portfolio management and supervision, and three years as vice president of product research and development. Prior to that, he worked as an equity research analyst at First Trust Portfolios (formerly Niké Securities), and a trader and analyst at PMA Securities, Inc.

Schwab U.S. Equity 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 (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 ended August 31, 2013, the fund closely tracked the index. The fund’s market price return was 20.06% and its NAV return was 20.12% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 20.10% during the same period. Differences between the return of the fund and the return of the index may be attributable to, among other things, the operational and transactional costs incurred by the fund and not the index.

Market Highlights. U.S. stocks generated impressive returns for the 12 months. Some signs of improvement in the U.S. housing market and other sectors of the economy supported these results, as did continued policies by the Federal Reserve aimed at keeping interest rates low, which made financing more affordable for businesses and individuals. Within the index, stocks in the Consumer Discretionary and Health Care sectors were some of the better performers, while stocks in the Telecommunication Services and Information Technology sectors underperformed by comparison.

Contributors and Detractors. The Financials sector contributed the most 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 representing approximately 17% of the fund. The fund’s Financials stocks returned roughly 27% for the 12 months. One example from this sector was Bank of America, which offers banking, investing, asset management, and other financial products and services. Bank of America holdings represented one of the fund’s largest positions within this sector and returned around 77%.

Consumer Discretionary stocks, which represented an average weight of roughly 13% of the index and fund, also provided meaningful contributions. The fund’s Consumer Discretionary stocks returned around 31%, reflecting the overall performance of companies involved in retailing, consumer services, media, and other activities. One example from this sector was Home Depot, a home improvement retailer. Home Depot holdings represented the fund’s second-largest position within this sector and returned approximately 33%.

The Telecommunication Services sector generated positive returns for the index and fund, but contributed the least to the fund’s performance. The Telecommunication Services sector represented an average weight of roughly 3% of the fund and returned approximately 6%. One example from this sector was AT&T, a communications holding company. The fund’s AT&T holdings represented the fund’s largest position in this sector and returned around -3%.

The Utilities sector generated positive returns for the index and fund, but was another weak overall contributor to performance. The Utilities sector represented an average weight of approximately 3% of the fund and returned roughly 9%. The fund’s holdings of Exelon Corporation, a utility services holding company, provided one example from this sector. The fund’s holdings of Exelon Corporation detracted more from performance for the 12 months than any other position within this sector, and returned about -12%.

As of 08/31/13:

Statistics


Number of Holdings			1,950
Weighted Average Market Cap ($ x 1,000,000)			$85,968
Price/Earnings Ratio (P/E)			20.4
Price/Book Ratio (P/B)			2.2
Portfolio Turnover Rate¹			4%

Sector Weightings % of Investments


Information Technology			17.6%
Financials			17.4%
Consumer Discretionary			13.0%
Health Care			12.5%
Industrials			11.2%
Energy			9.8%
Consumer Staples			9.0%
Materials			3.8%
Utilities			3.2%
Telecommunication Services			2.3%
Other			0.2%
Total			100.0%

Top Equity Holdings % of Net Assets²


Apple, Inc.			2.5%
Exxon Mobil Corp.			2.1%
Microsoft Corp.			1.4%
Johnson & Johnson			1.3%
General Electric Co.			1.3%
Chevron Corp.			1.3%
Google, Inc., Class A			1.3%
The Procter & Gamble Co.			1.2%
Berkshire Hathaway, Inc., Class B			1.1%
Wells Fargo & Co.			1.1%
Total			14.6%

Management 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. Equity ETFs

Schwab U.S. Broad Market ETF^tm

Performance and Fund Facts as of 08/31/13

November 3, 2009 – August 31, 2013
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


	1 Year			3 Years			Since Inception


Fund: Schwab U.S. Broad Market ETF^tm (11/3/09)
Market Price Return²		20.06	%		18.87	%	15.60%
NAV Return²		20.12	%		18.86	%	15.61%
Dow Jones U.S. Broad Stock Market Index		20.10	%		18.87	%	15.66%
ETF Category: Morningstar Large Blend³		19.40	%		17.47	%	14.32%

Fund Expense Ratio⁴: 0.04%

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.

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

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.

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

During the 12-month period ended August 31, 2013, the fund closely tracked the index. The fund’s market price return was 19.14% and its NAV return was 19.17% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 19.25% during the same period. Differences between the return of the fund and the return of the index may be attributable to, among other things, the operational and transactional costs incurred by the fund and not the index.

Contributors and Detractors. The Financials sector contributed the most 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 representing approximately 16% of the fund. The fund’s Financials stocks returned roughly 28% for the 12 months. One example from this sector was Bank of America, which offers banking, investing, asset management, and other financial products and services. Bank of America holdings represented one of the fund’s largest positions within this sector and returned around 77%.

Consumer Discretionary stocks, which represented an average weight of roughly 12% of the index and fund, also provided meaningful contributions. The fund’s Consumer Discretionary stocks returned around 30%, reflecting the overall performance of companies involved in retailing, consumer services, media, and other activities. One example from this sector was Home Depot, a home improvement retailer. Home Depot holdings represented the fund’s largest position within this sector and returned approximately 33%.

The Telecommunication Services sector generated positive returns for the index and fund, but contributed the least to the fund’s performance. The Telecommunication Services sector represented an average weight of roughly 3% of the fund, and underperformed all other sectors in the index, returning approximately 5%. One example from this sector was CenturyLink Inc., an integrated communications company. The fund’s CenturyLink Inc. holdings returned around -16%.

The Utilities sector generated positive returns for the index and fund, but was another weak overall contributor to performance. The Utilities sector represented an average weight of approximately 4% of the fund and returned roughly 9%. The fund’s holdings of Exelon Corporation, a utility services holding company, provided one example from this sector. The fund’s holdings of Exelon Corporation detracted more from performance for the 12 months than any other position within this sector, and returned about -12%.

As of 08/31/13:

Statistics


Number of Holdings			765
Weighted Average Market Cap ($ x 1,000,000)			$96,236
Price/Earnings Ratio (P/E)			19.5
Price/Book Ratio (P/B)			2.2
Portfolio Turnover Rate¹			5%

Sector Weightings % of Investments


Information Technology			17.8%
Financials			16.7%
Consumer Discretionary			12.8%
Health Care			12.6%
Industrials			10.6%
Energy			10.3%
Consumer Staples			9.6%
Materials			3.6%
Utilities			3.3%
Telecommunication Services			2.5%
Other			0.2%
Total			100.0%

Top Equity Holdings % of Net Assets²


Apple, Inc.			2.8%
Exxon Mobil Corp.			2.4%
Microsoft Corp.			1.6%
Johnson & Johnson			1.5%
General Electric Co.			1.5%
Chevron Corp.			1.5%
Google Inc., Class A			1.4%
The Procter & Gamble Co.			1.3%
Berkshire Hathaway, Inc., Class B			1.3%
Wells Fargo & Co.			1.3%
Total			16.6%

Management 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. Equity ETFs

Schwab U.S. Large-Cap ETF^tm

Performance and Fund Facts as of 08/31/13

November 3, 2009 – August 31, 2013
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


	1 Year			3 Years			Since Inception


Fund: Schwab U.S. Large-Cap ETF^tm (11/3/09)
Market Price Return²		19.14	%		18.40	%	15.03%
NAV Return²		19.17	%		18.39	%	15.04%
Dow Jones U.S. Large-Cap Total Stock Market Index		19.25	%		18.52	%	15.15%
ETF Category: Morningstar Large Blend³		19.40	%		17.47	%	14.32%

Fund Expense Ratio⁴: 0.04%

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

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.

Schwab U.S. Equity 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 (the index). The index includes the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The index 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 the index does.

During the 12-month period ended August 31, 2013, the fund closely tracked the index. The fund’s market price return was 17.82% and its NAV return was 18.02% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 18.12% during the same period. Differences between the return of the fund and the return of the index may be attributable to, among other things, the operational and transactional costs incurred by the fund and not the index.

Market Highlights. U.S. stocks generated impressive returns for the 12 months. Some signs of improvement in the U.S. housing market and other sectors of the economy supported these results, as did continued policies by the Federal Reserve aimed at keeping interest rates low, which made financing more affordable for businesses and individuals. Within the index, stocks in the Health Care and Consumer Discretionary sectors were some of the better performers, while stocks in the Information Technology and Materials sectors underperformed by comparison.

Contributors and Detractors. The Health Care 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 Health Care stocks representing approximately 14% of the fund. In addition, the fund’s Health Care stocks generated higher overall returns than stocks in any other sector, returning roughly 33%. One example from this sector was Gilead Sciences, Inc., a research-based biopharmaceutical company. Gilead Sciences, Inc. holdings represented one of the fund’s largest positions within this sector and returned around 109%, outperforming other Health Care holdings.

Consumer Discretionary stocks, which represented an average weight of roughly 14% of the index and fund, also provided meaningful contributions. The fund’s Consumer Discretionary stocks returned around 27%, reflecting the overall performance of companies involved in retailing, consumer services, media, and other activities. One example from this sector was Comcast Corporation, a company that provides media and television broadcasting services. Comcast Corporation holdings represented the fund’s largest position within this sector and returned approximately 28%.

The Utilities sector generated solid returns for the index and fund, but was the weakest contributor to the fund’s performance. The Utilities sector represented an average weight of less than 1% of the fund and returned roughly 17%. The fund’s holdings of Calpine Corporation provided one example from this sector. Calpine Corporation acquires, develops, owns, and operates power generation facilities, and the fund’s holdings of this company returned approximately 10%.

The Telecommunication Services sector also generated positive results for the index and fund, but was another comparatively weak contributor to the fund’s overall return. The Telecommunication Services sector represented an average weight of less than 1% of the fund, while returning approximately 19%. One example from this sector was United States Cellular Corporation, the fund’s only holdings in this sector to generate a negative return. United States Cellular Corporation provides cellular telephone service throughout the U.S., and the fund’s holdings of this company returned around -5%.

As of 08/31/13:

Statistics


Number of Holdings			410
Weighted Average Market Cap ($ x 1,000,000)			$91,667
Price/Earnings Ratio (P/E)			20.5
Price/Book Ratio (P/B)			3.4
Portfolio Turnover Rate¹			11%

Sector Weightings % of Investments


Information Technology			27.7%
Health Care			16.1%
Consumer Discretionary			14.4%
Industrials			11.1%
Financials			9.6%
Energy			9.0%
Consumer Staples			7.2%
Materials			3.7%
Telecommunication Services			0.5%
Utilities			0.5%
Other			0.2%
Total			100.0%

Top Equity Holdings % of Net Assets²


Apple, Inc.			5.7%
Microsoft Corp.			3.1%
Johnson & Johnson			3.0%
Google, Inc., Class A			2.8%
Berkshire Hathaway, Inc., Class B			2.5%
Cisco Systems, Inc.			1.5%
PepsiCo, Inc.			1.5%
Wal-Mart Stores, Inc.			1.5%
Oracle Corp.			1.4%
QUALCOMM, Inc.			1.4%
Total			24.4%

Management 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. Equity ETFs

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

Performance and Fund Facts as of 08/31/13

December 11, 2009 – August 31, 2013
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


	1 Year			3 Years			Since Inception


Fund: Schwab U.S. Large-Cap Growth ETF^tm (12/11/09)
Market Price Return²		17.82	%		19.17	%	13.92%
NAV Return²		18.02	%		19.16	%	13.93%
Dow Jones U.S. Large-Cap Growth Total Stock Market Index		18.12	%		19.33	%	14.07%
ETF Category: Morningstar Large Growth³		19.29	%		19.75	%	14.69%

Fund Expense Ratio⁴: 0.07%

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

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.

Schwab U.S. Equity 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 (the index). The index includes the large-cap value portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The index 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 the index does.

During the 12-month period ended August 31, 2013, the fund closely tracked the index. The fund’s market price return was 20.09% and its NAV return was 20.06% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 20.23% during the same period. Differences between the return of the fund and the return of the index may be attributable to, among other things, the operational and transactional costs incurred by the fund and not the index.

Market Highlights. U.S. stocks generated impressive returns for the 12 months. Some signs of improvement in the U.S. housing market and other sectors of the economy supported these results, as did continued policies by the Federal Reserve aimed at keeping interest rates low, which made financing more affordable for businesses and individuals. Within the index, stocks in the Consumer Discretionary and Financials sectors were some of the better performers, while stocks in the Telecommunication Services and Utilities sectors underperformed by comparison.

Contributors and Detractors. The Financials sector was the biggest contributor to the index’s return, and to the return of the fund. Financials stocks represented an average weight of approximately 23% of the fund, more than twice the size of any other sector. The fund’s Financials stocks returned roughly 31% for the 12 months. One example from this sector was Bank of America, which offers banking, investing, asset management, and other financial products and services. Bank of America holdings represented one of the fund’s largest positions within this sector and returned around 77%.

Consumer Discretionary stocks, which represented an average weight of roughly 11% of the index and fund, also provided meaningful contributions. The fund’s Consumer Discretionary stocks returned around 33%, reflecting the overall performance of companies involved in retailing, consumer services, media, and other activities. One example from this sector was Home Depot, a home improvement retailer. Home Depot holdings represented the fund’s largest position within this sector and returned approximately 33%.

The Telecommunication Services sector generated modestly positive results for the index and fund, but was the weakest contributor to the fund’s performance. The Telecommunication Services sector represented an average weight of approximately 5% of the fund, while returning roughly 4% and underperforming other sectors. One example among the fund’s Telecommunication Services holdings was AT&T, the fund’s largest position in this sector. The fund’s AT&T holdings returned around -3%.

The Utilities sector generated respectable returns for the index and fund, but was another comparatively weak contributor to the fund’s overall performance. The Utilities sector represented an average weight of roughly 6% of the fund and returned about 8%. The fund’s holdings of Exelon Corporation, a utility services holding company, provided one example from this sector. The fund’s holdings of Exelon Corporation detracted more from performance for the 12 months than any other position within this sector, and returned about -12%.

As of 08/31/13:

Statistics


Number of Holdings			357
Weighted Average Market Cap ($ x 1,000,000)			$100,684
Price/Earnings Ratio (P/E)			18.4
Price/Book Ratio (P/B)			1.6
Portfolio Turnover Rate¹			9%

Sector Weightings % of Investments


Financials			23.9%
Consumer Staples			12.0%
Energy			11.7%
Consumer Discretionary			11.2%
Industrials			10.0%
Health Care			9.1%
Information Technology			7.8%
Utilities			6.2%
Telecommunication Services			4.4%
Materials			3.5%
Other			0.2%
Total			100.0%

Top Equity Holdings % of Net Assets²


Exxon Mobil Corp.			4.8%
General Electric Co.			3.0%
Chevron Corp.			2.9%
The Procter & Gamble Co.			2.7%
Wells Fargo & Co.			2.5%
JPMorgan Chase & Co.			2.4%
International Business Machines Corp.			2.4%
Pfizer, Inc.			2.4%
AT&T, Inc.			2.3%
Bank of America Corp.			1.9%
Total			27.3%

Management 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. Equity ETFs

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

Performance and Fund Facts as of 08/31/13

December 11, 2009 – August 31, 2013
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


	1 Year			3 Years			Since Inception


Fund: Schwab U.S. Large-Cap Value ETF^tm (12/11/09)
Market Price Return²		20.09	%		17.56	%	13.31%
NAV Return²		20.06	%		17.55	%	13.30%
Dow Jones U.S. Large-Cap Value Total Stock Market Index		20.23	%		17.77	%	13.51%
ETF Category: Morningstar Large Value³		19.65	%		17.72	%	13.71%

Fund Expense Ratio⁴: 0.07%

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

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.

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

During the 12-month period ended August 31, 2013, the fund closely tracked the index. The fund’s market price return was 26.18% and its NAV return was 26.27% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 26.38% during the same period. Differences between the return of the fund and the return of the index may be attributable to, among other things, the operational and transactional costs incurred by the fund and not the index.

Market Highlights. U.S. stocks generated impressive returns for the 12 months. Some signs of improvement in the U.S. housing market and other sectors of the economy supported these results, as did continued policies by the Federal Reserve aimed at keeping interest rates low, which made financing more affordable for businesses and individuals. Within the index, stocks in the Consumer Staples and Consumer Discretionary sectors were some of the better performers, while stocks in the Utilities and Financials sectors generated double-digit returns, but underperformed by comparison.

Contributors and Detractors. Consumer Discretionary stocks, which represented an average weight of roughly 16% of the index and fund, contributed the most to the returns of the fund and index. The fund’s Consumer Discretionary stocks returned around 39%, reflecting the overall performance of companies involved in retailing, consumer services, media, and other activities. One example from this sector was Tesla Motors, Inc., which designs, manufactures, and sells high-performance electric vehicles. Easily outperforming any other stocks in this sector, the fund’s Tesla Motors, Inc. holdings generated a triple-digit return of approximately 493%.

The Industrials sector also provided a meaningful contribution to the index’s return, and to the return of the fund. Industrials stocks represented an average weight of approximately 16% of the fund and returned roughly 30%. One example from this sector was United Continental Holdings Inc., an airline holding company. United Continental Holdings Inc. represented the fund’s largest position within this sector and returned around 54%.

The Telecommunication Services sector generated positive results for the index and fund, but was the weakest contributor to the fund’s performance. The Telecommunication Services sector represented an average weight of approximately 1% of the fund and returned roughly 28%. One example among the fund’s Telecommunication Services holdings was Windstream Holdings Inc., which offers telecommunication services to residential and business customers. The fund’s Windstream Holdings Inc. stock returned around -2%, and was the fund’s only position in this sector to generate negative returns.

The Utilities sector also performed well, but was another comparatively weak contributor to the overall returns generated by the fund and index. The Utilities sector represented an average weight of roughly 6% of the fund and returned about 17%. The fund’s holdings of Hawaiian Electric Industries, Inc., a diversified holding company, provided one example from this sector. The fund’s holdings of Hawaiian Electric Industries, Inc. were the only stocks within this sector to detract from performance, returning about -1%.

As of 08/31/13:

Statistics


Number of Holdings			587
Weighted Average Market Cap ($ x 1,000,000)			$5,209
Price/Earnings Ratio (P/E)			26.8
Price/Book Ratio (P/B)			2.4
Portfolio Turnover Rate¹			25%

Sector Weightings % of Investments


Financials			21.1%
Consumer Discretionary			16.6%
Industrials			15.8%
Information Technology			13.1%
Health Care			9.3%
Materials			7.6%
Energy			6.3%
Utilities			5.5%
Consumer Staples			3.5%
Telecommunication Services			1.1%
Other			0.1%
Total			100.0%

Top Equity Holdings % of Net Assets²


Tesla Motors, Inc.			0.6%
Green Mountain Coffee Roasters, Inc.			0.5%
PVH Corp.			0.5%
United Continental Holdings, Inc.			0.5%
Best Buy Co., Inc.			0.4%
Hertz Global Holdings, Inc.			0.4%
Illumina, Inc.			0.4%
Alliance Data Systems Corp.			0.4%
Affiliated Managers Group, Inc.			0.4%
BioMarin Pharmaceutical, Inc.			0.4%
Total			4.5%

Management 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. Equity ETFs

Schwab U.S. Mid-Cap ETF^tm

Performance and Fund Facts as of 08/31/13

January 13, 2011 – August 31, 2013
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


	1 Year			Since Inception


Fund: Schwab U.S. Mid-Cap ETF^tm (1/13/11)
Market Price Return²		26.18	%	12.28%
NAV Return²		26.27	%	12.28%
Dow Jones U.S. Mid-Cap Total Stock Market Index		26.38	%	12.39%
ETF Category: Morningstar Mid-Cap Blend³		25.73	%	12.01%

Fund Expense Ratio⁴: 0.07%

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

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.

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

During the 12-month period ended August 31, 2013, the fund closely tracked the index. The fund’s market price return was 27.33% and its NAV return was 27.47% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 27.50% during the same period. Differences between the return of the fund and the return of the index may be attributable to, among other things, the operational and transactional costs incurred by the fund and not the index.

Market Highlights. U.S. stocks generated impressive returns for the 12 months. Some signs of improvement in the U.S. housing market and other sectors of the economy supported these results, as did continued policies by the Federal Reserve aimed at keeping interest rates low, which made financing more affordable for businesses and individuals. Within the index, stocks in the Consumer Discretionary and Industrials sectors were some of the better performers, while stocks in the Utilities and Materials sectors generated double-digit returns, but underperformed by comparison.

Contributors and Detractors. The Industrials sector contributed the most to the index’s return, and to the return of the fund. Industrials stocks represented an average weight of approximately 17% of the fund and returned roughly 36%, reflecting the performance of companies involved in commercial services and supplies, transportation, and in the production of capital goods for industries like aerospace and defense. One example of the performance of the Industrials sector was United Rentals, Inc., an equipment rental company. The fund’s United Rentals, Inc. holdings returned 64%.

The Financials sector was the next biggest contributor to the index’s return, and to the return of the fund. Financials stocks represented an average weight of approximately 23% of the fund, larger than any other sector. The fund’s Financials stocks returned roughly 22% for the 12 months, and one example from this sector was Waddell & Reed Financial, Inc., a company that serves as an investment advisor and exclusive underwriter and distributor for a family of mutual funds through its subsidiaries. The fund’s Waddell & Reed Financial, Inc. holdings returned approximately 71%.

The Telecommunication Services sector generated positive results for the index and fund, but contributed the least to performance. The Telecommunication Services sector represented an average weight of less than 1% of the fund, well below the size of other sectors, and returned around 30%. One example among the fund’s Telecommunication Services holdings was Cincinnati Bell Inc., a local exchange and wireless provider of telecommunications products and services. The fund’s Cincinnati Bell Inc. holdings returned roughly -36%.

After the Telecommunication Services sector, the Utilities sector was smallest sector in the index and fund, representing an average weight of approximately 3%. Utilities stocks generated a return of approximately 12% for the fund. Shares of Northwest Natural Gas Company, a company that distributes natural gas to customers, underperformed other stocks in this sector. The fund’s holdings of Northwest Natural Gas Company returned about -13%.

As of 08/31/13:

Statistics


Number of Holdings			1,784
Weighted Average Market Cap ($ x 1,000,000)			$2,106
Price/Earnings Ratio (P/E)			48.7
Price/Book Ratio (P/B)			2.7
Portfolio Turnover Rate¹			22%

Sector Weightings % of Investments


Financials			22.9%
Industrials			15.9%
Information Technology			15.7%
Consumer Discretionary			14.9%
Health Care			11.9%
Energy			5.8%
Materials			5.5%
Consumer Staples			3.7%
Utilities			2.9%
Telecommunication Services			0.7%
Other			0.1%
Total			100.0%

Top Equity Holdings % of Net Assets²


GameStop Corp., Class A	0.3%
The Goodyear Tire & Rubber Co.	0.3%
Energen Corp.	0.2%
Incyte Corp.	0.2%
Nu Skin Enterprises, Inc., Class A	0.2%
Jazz Pharmaceuticals plc	0.2%
Harman International Industries, Inc.	0.2%
Alkermes plc	0.2%
Graco, Inc.	0.2%	��
CBOE Holdings, Inc.	0.2%
Total	2.2%

Management 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. Equity ETFs

Schwab U.S. Small-Cap ETF^tm

Performance and Fund Facts as of 08/31/13

November 3, 2009 – August 31, 2013
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


	1 Year			3 Years			Since Inception


Fund: Schwab U.S. Small-Cap ETF^tm (11/3/09)
Market Price Return²		27.33	%		21.76	%	19.62%
NAV Return²		27.47	%		21.72	%	19.64%
Dow Jones U.S. Small-Cap Total Stock Market Index		27.50	%		21.81	%	19.78%
ETF Category: Morningstar Small Blend³		28.10	%		21.18	%	18.05%

Fund Expense Ratio⁴: 0.08%

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

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. Effective March 11, 2013, the management fee was further reduced to 0.08%. For more information, see financial note 4 or refer to the prospectus supplement dated March 11, 2013.

Schwab U.S. Equity 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 (the index). The 100-component index is a subset of the Dow Jones U.S. Broad Market Index, 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 the index does.

During the 12-month period ended August 31, 2013, the fund closely tracked the index. The fund’s market price return was 18.77% and its NAV return was 18.93% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 19.04% during the same period. Differences between the return of the fund and the return of the index may be attributable to, among other things, the operational and transactional costs incurred by the fund and not the index.

Market Highlights. U.S. stocks generated impressive returns for the 12 months. Some signs of improvement in the U.S. housing market and other sectors of the economy supported these results, as did continued policies by the Federal Reserve aimed at keeping interest rates low, which made financing more affordable for businesses and individuals. Within the index, stocks in the Industrials and Materials were some of the better performers, while stocks in the Telecommunication Services and Utilities sectors underperformed by comparison.

Contributors and Detractors. The Industrials sector contributed the most to the index’s return, and to the return of the fund. Industrials stocks represented an average weight of approximately 17% of the fund and returned roughly 30%, reflecting the performance of companies involved in commercial services and supplies, transportation, and in the production of capital goods for industries like aerospace and defense. One example of the performance of the Industrials sector was the Boeing Company, which develops, produces, and markets commercial jet aircraft. The fund’s Boeing Company holdings returned approximately 49% for the 12 months.

Consumer Staples stocks, which represented approximately 28% of the index and the fund, provided the next biggest contribution to performance. The fund’s Consumer Staples holdings returned approximately 13%. The Procter & Gamble Company—which manufactures and markets consumer products—provided one example of this sector’s performance, with the fund’s holdings returning about 20%.

The Telecommunication Services sector detracted the most from the fund’s performance, and was the only sector to generate a negative overall return. The Telecommunication Services sector represented an average weight of roughly 1% of the fund, and the only company within this sector was CenturyLink Inc., an integrated communications company. The fund’s holdings of this company returned roughly -16%.

After the Telecommunication Services sector, the Utilities sector was smallest sector in the fund and index, and provided one of the smallest contributions to performance. Utilities stocks generated a return of approximately 4% for the fund, and represented an average weight of roughly 3%. One example of the performance of the Utilities sector was the Exelon Corporation, a utility services holding company. The fund’s Exelon Corporation holdings returned approximately -5%.

As of 08/31/13:

Statistics


Number of Holdings			101
Weighted Average Market Cap ($ x 1,000,000)			$115,565
Price/Earnings Ratio (P/E)			16.0
Price/Book Ratio (P/B)			3.4
Portfolio Turnover Rate¹			13%

Sector Weightings % of Investments


Consumer Staples			26.2%
Industrials			18.8%
Energy			12.7%
Information Technology			12.6%
Health Care			12.0%
Consumer Discretionary			9.1%
Materials			3.4%
Financials			2.6%
Utilities			1.8%
Telecommunication Services			0.6%
Other			0.2%
Total			100.0%

Top Equity Holdings % of Net Assets²


Johnson & Johnson			4.6%
The Procter & Gamble Co.			4.5%
Chevron Corp.			4.5%
Microsoft Corp.			4.4%
Exxon Mobil Corp.			4.3%
The Coca-Cola Co.			4.3%
PepsiCo, Inc.			3.9%
Wal-Mart Stores, Inc.			3.8%
Intel Corp.			3.5%
The Home Depot, Inc.			3.5%
Total			41.3%

Management 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. Equity ETFs

Schwab U.S. Dividend Equity ETF^tm

Performance and Fund Facts as of 08/31/13

October 20, 2011 – August 31, 2013
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


	1 Year			Since Inception


Fund: Schwab U.S. Dividend Equity ETF^tm (10/20/11)
Market Price Return²		18.77	%	19.26%
NAV Return²		18.93	%	19.28%
Dow Jones U.S. Dividend 100^tm Index		19.04	%	19.48%
ETF Category: Morningstar Large Blend³		19.40	%	18.99%

Fund Expense Ratio⁴: 0.07%

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

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.


*		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.

Schwab U.S. Equity ETFs 19

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

As a fund shareholder, you may 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, 2013 and held through August 31, 2013.

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 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 a 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 a fund. Therefore, the hypothetical return lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, 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 3/1/13		at 8/31/13		3/1/13–8/31/13

Schwab U.S. Broad Market ETF^tm
Actual Return		0.04%	$	1,000.00	$	1,093.80	$	0.21
Hypothetical 5% Return		0.04%	$	1,000.00	$	1,025.00	$	0.20


Schwab U.S. Large-Cap ETF^tm
Actual Return		0.04%	$	1,000.00	$	1,090.30	$	0.21
Hypothetical 5% Return		0.04%	$	1,000.00	$	1,025.00	$	0.20


Schwab U.S. Large-Cap Growth ETF^tm
Actual Return		0.07%	$	1,000.00	$	1,104.90	$	0.37
Hypothetical 5% Return		0.07%	$	1,000.00	$	1,024.85	$	0.36


Schwab U.S. Large-Cap Value ETF^tm
Actual Return		0.07%	$	1,000.00	$	1,075.30	$	0.37
Hypothetical 5% Return		0.07%	$	1,000.00	$	1,024.85	$	0.36


Schwab U.S. Mid-Cap ETF^tm
Actual Return		0.07%	$	1,000.00	$	1,093.80	$	0.37
Hypothetical 5% Return		0.07%	$	1,000.00	$	1,024.85	$	0.36


Schwab U.S. Small-Cap ETF^tm
Actual Return		0.08%	$	1,000.00	$	1,119.20	$	0.43
Hypothetical 5% Return		0.08%	$	1,000.00	$	1,024.80	$	0.41


Schwab U.S. Dividend Equity ETF^tm
Actual Return		0.07%	$	1,000.00	$	1,093.70	$	0.37
Hypothetical 5% Return		0.07%	$	1,000.00	$	1,024.85	$	0.36


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 365 days of the fiscal year.

20 Schwab U.S. Equity ETFs

Schwab U.S. Broad Market ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			9/1/10–			10/30/09¹–
	8/31/13			8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		33.84			29.47			25.11			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.80	²		0.65	²		0.56	²		0.42	²
Net realized and unrealized gains (losses)		5.92			4.32			4.32			(0.05	)

Total from investment operations		6.72			4.97			4.88			0.37
Less distributions:
Distributions from net investment income		(0.77	)		(0.60	)		(0.52	)		(0.26	)

Net asset value at end of period		39.79			33.84			29.47			25.11

Total return (%)		20.12			17.07			19.41			1.42	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.04			0.06			0.06			0.07	^4,5
Gross operating expenses		0.04			0.06			0.06			0.07	⁴
Net investment income (loss)		2.15			2.06			1.83			1.92	⁴
Portfolio turnover rate⁶		4			5			3			2	³
Net assets, end of period ($ x 1,000)		2,182,671			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 ratio was reduced. The ratio presented for period ended 8/31/10 is a blended ratio.

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, 2013

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		1,846,144,107		2,176,087,406
	0	.2%	Other Investment Companies		3,570,939		3,585,252


	99	.9%	Total Investments		1,849,715,046		2,179,672,658
	0	.5%	Collateral Invested for Securities on Loan		11,366,609		11,366,609
	(0	.4)%	Other Assets and Liabilities, Net				(8,368,422	)


	100	.0%	Net Assets				2,182,670,845


	Number		Value
Security	of Shares		($)

Common Stock 99.7% of net assets

Automobiles & Components 1.2%
Allison Transmission Holdings, Inc.		11,006		247,745
American Axle & Manufacturing Holdings, Inc. *		7,985		153,552
Autoliv, Inc.		11,410		923,982
BorgWarner, Inc.		14,261		1,377,327
Cooper Tire & Rubber Co.		7,170		228,938
Dana Holding Corp.		18,649		390,883
Delphi Automotive plc		34,735		1,911,120
Dorman Products, Inc.		4,388		220,453
Drew Industries, Inc.		2,366		99,277
Federal-Mogul Corp. *		10,243		156,308
Ford Motor Co.		474,655		7,684,664
General Motors Co. *		92,208		3,142,449
Gentex Corp.		17,055		384,249
Harley-Davidson, Inc.		28,522		1,710,750
Johnson Controls, Inc.		82,428		3,340,807
Lear Corp.		13,164		905,025
Tenneco, Inc. *		7,082		326,693
Tesla Motors, Inc. *		8,841		1,494,129
The Goodyear Tire & Rubber Co. *		29,104		585,572
Thor Industries, Inc.		5,485		280,997
TRW Automotive Holdings Corp. *		15,173		1,047,999
Visteon Corp. *		5,979		428,156

				27,041,075

Banks 3.4%
Associated Banc-Corp.		23,357		372,544
Astoria Financial Corp.		9,902		121,795
BancFirst Corp.		2,209		112,836
BancorpSouth, Inc.		11,240		217,831
Bank of Hawaii Corp.		5,485		282,478
Bank of the Ozarks, Inc.		4,388		199,127
BankUnited, Inc.		7,799		230,460
Banner Corp.		5,244		179,659
BB&T Corp.		88,438		3,003,354
BBCN Bancorp, Inc.		7,991		106,760
Beneficial Mutual Bancorp, Inc. *		10,044		93,007
Berkshire Hills Bancorp, Inc.		2,500		62,125
BOK Financial Corp.		2,788		178,683
Boston Private Financial Holdings, Inc.		9,305		95,097
Brookline Bancorp, Inc.		9,903		89,622
CapitalSource, Inc.		32,984		380,965
Capitol Federal Financial, Inc.		19,261		235,755
Cathay General Bancorp		8,864		195,185
Central Pacific Financial Corp.		4,932		83,795
Chemical Financial Corp.		3,449		93,951
CIT Group, Inc. *		25,231		1,207,808
City Holding Co.		2,194		89,625
City National Corp.		5,485		359,103
Columbia Banking System, Inc.		7,679		178,153
Comerica, Inc.		23,231		948,754
Commerce Bancshares, Inc.		10,435		450,688
Community Bank System, Inc.		4,388		145,857
Community Trust Bancorp, Inc.		1,450		54,694
Cullen/Frost Bankers, Inc. (a)		7,082		501,689
CVB Financial Corp.		11,184		142,484
East West Bancorp, Inc.		18,649		545,110
EverBank Financial Corp.		6,015		84,571
F.N.B. Corp.		16,653		201,002
Fifth Third Bancorp		114,096		2,086,816
First BanCorp *		17,784		113,640
First Citizens BancShares, Inc., Class A		947		191,521
First Commonwealth Financial Corp.		14,436		105,816
First Financial Bancorp		6,638		99,570
First Financial Bankshares, Inc. (a)		3,485		200,388
First Financial Holdings, Inc.		1,550		83,437
First Horizon National Corp.		29,895		330,639
First Interstate BancSystem, Inc.		4,732		107,558
First Midwest Bancorp, Inc.		10,970		164,879
First Niagara Financial Group, Inc.		42,130		425,513
First Republic Bank		8,776		388,601
FirstMerit Corp.		19,428		411,096
Flagstar Bancorp, Inc. *		10,295		149,278
Fulton Financial Corp.		26,648		322,174
Glacier Bancorp, Inc.		8,314		196,210
Hancock Holding Co.		9,873		317,417
Hanmi Financial Corp.		5,244		85,635
Home BancShares, Inc.		8,776		223,086
Home Loan Servicing Solutions Ltd.		10,549		240,517
Hudson City Bancorp, Inc.		58,141		534,316
Huntington Bancshares, Inc.		103,118		849,692
IBERIABANK Corp.		3,291		172,251
Independent Bank Corp.		2,466		87,568
International Bancshares Corp.		6,738		147,697
Investors Bancorp, Inc.		6,582		137,037
Kearny Financial Corp. *		2,207		21,584
KeyCorp		117,827		1,375,041
M&T Bank Corp.		14,908		1,689,673

22 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
MB Financial, Inc.		6,623		178,755
MGIC Investment Corp. *		35,920		259,342
National Bank Holdings Corp., Class A		3,872		75,698
National Penn Bancshares, Inc.		14,839		148,984
Nationstar Mortgage Holdings, Inc. *(a)		3,449		171,415
NBT Bancorp, Inc.		7,951		170,310
New York Community Bancorp, Inc.		52,962		775,893
Northfield Bancorp, Inc.		6,873		82,476
Northwest Bancshares, Inc.		16,455		219,510
Ocwen Financial Corp. *		15,358		774,658
OFG Bancorp		11,850		203,583
Old National Bancorp		12,155		159,717
Oritani Financial Corp.		7,679		119,101
PacWest Bancorp		5,485		182,376
Park National Corp. (a)		1,371		104,319
People’s United Financial, Inc.		41,686		592,775
Pinnacle Financial Partners, Inc. *		3,749		104,785
Popular, Inc. *		12,077		375,112
PrivateBancorp, Inc.		9,873		215,429
Prosperity Bancshares, Inc.		5,485		328,003
Provident Financial Services, Inc.		8,776		141,996
Radian Group, Inc.		26,338		356,880
Regions Financial Corp.		180,494		1,696,644
Renasant Corp.		2,700		67,959
S&T Bancorp, Inc.		3,350		75,308
Sandy Spring Bancorp, Inc.		2,600		58,110
Signature Bank *		5,485		481,144
State Bank Financial Corp.		3,550		53,818
Sterling Financial Corp.		4,443		107,521
SunTrust Banks, Inc.		68,922		2,206,882
Susquehanna Bancshares, Inc.		22,090		278,555
SVB Financial Group *		5,485		454,158
Synovus Financial Corp.		94,772		302,323
TCF Financial Corp.		22,188		311,741
Texas Capital Bancshares, Inc. *		4,636		204,355
TFS Financial Corp. *		15,358		167,095
The PNC Financial Services Group, Inc.		65,377		4,724,796
TrustCo Bank Corp.		11,100		64,824
Trustmark Corp.		8,776		218,171
U.S. Bancorp		226,260		8,174,774
UMB Financial Corp.		4,388		262,095
Umpqua Holdings Corp.		17,552		285,044
United Bankshares, Inc.		5,526		153,457
United Community Banks, Inc. *		5,805		84,637
Valley National Bancorp (a)		28,679		289,371
ViewPoint Financial Group, Inc.		4,532		90,141
Washington Federal, Inc.		13,164		274,996
Webster Financial Corp.		11,309		299,236
Wells Fargo & Co.		595,757		24,473,698
WesBanco, Inc.		2,800		80,332
Westamerica Bancorp		3,291		154,907
Western Alliance Bancorp *		11,084		181,445
Wintrust Financial Corp.		5,485		217,425
Zions Bancorp		22,093		617,941

				75,357,237

Capital Goods 8.2%
3M Co.		77,053		8,751,680
A.O. Smith Corp.		8,776		369,031
AAON, Inc.		3,750		87,450
AAR Corp.		4,388		110,095
Actuant Corp., Class A		9,873		352,664
Acuity Brands, Inc.		5,485		468,967
AECOM Technology Corp. *		13,417		390,837
Aegion Corp. *		4,608		98,611
AGCO Corp.		11,370		643,087
Air Lease Corp.		7,920		204,336
Aircastle Ltd.		9,873		160,930
Albany International Corp., Class A		3,589		115,817
Alliant Techsystems, Inc.		3,691		357,141
Altra Holdings, Inc.		2,800		69,580
American Railcar Industries, Inc. (a)		1,450		51,287
AMETEK, Inc.		29,619		1,271,247
Apogee Enterprises, Inc.		3,350		93,465
Applied Industrial Technologies, Inc.		5,485		261,196
Armstrong World Industries, Inc. *		2,413		117,175
Astec Industries, Inc.		2,330		80,525
AZZ, Inc.		2,566		96,328
B/E Aerospace, Inc. *		13,164		897,653
Barnes Group, Inc.		5,669		177,270
Beacon Roofing Supply, Inc. *		5,485		199,270
Blount International, Inc. *		5,485		63,681
Brady Corp., Class A		5,485		181,005
Briggs & Stratton Corp.		5,726		109,309
Builders FirstSource, Inc. *		11,200		63,616
Carlisle Cos., Inc.		7,679		511,421
Caterpillar, Inc.		78,984		6,519,339
Chart Industries, Inc. *		3,312		378,164
Chicago Bridge & Iron Co. N.V.		12,671		758,106
CIRCOR International, Inc.		2,194		126,133
CLARCOR, Inc.		6,582		352,532
Colfax Corp. *		10,149		528,661
Comfort Systems USA, Inc.		4,700		70,970
Crane Co.		6,582		377,873
Cubic Corp.		1,547		77,675
Cummins, Inc.		21,202		2,612,086
Curtiss-Wright Corp.		5,485		229,054
Danaher Corp.		70,361		4,610,053
Deere & Co.		47,250		3,951,990
DigitalGlobe, Inc. *		8,328		251,506
Donaldson Co., Inc.		17,552		618,532
Dover Corp.		21,940		1,865,997
DXP Enterprises, Inc. *		1,150		78,177
Dycom Industries, Inc. *		3,772		95,847
Eaton Corp. plc		57,081		3,614,369
EMCOR Group, Inc.		7,679		288,654
Emerson Electric Co.		87,304		5,270,542
Encore Wire Corp.		2,665		100,550
EnerSys, Inc.		5,679		291,219
EnPro Industries, Inc. *		2,346		133,675
ESCO Technologies, Inc.		4,388		134,492
Esterline Technologies Corp. *		4,388		334,761
Exelis, Inc.		21,940		322,737
Fastenal Co.		32,254		1,418,853
Flowserve Corp.		17,635		983,857

See financial notes 23

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Fluor Corp.		20,107		1,275,387
Fortune Brands Home & Security, Inc.		19,149		705,449
Foster Wheeler AG *		12,769		295,985
Franklin Electric Co., Inc.		4,482		160,993
GATX Corp.		6,582		297,901
GenCorp, Inc. *(a)		6,900		103,983
Generac Holdings, Inc.		7,973		315,651
General Cable Corp.		5,610		171,273
General Dynamics Corp.		39,751		3,309,271
General Electric Co.		1,251,038		28,949,019
Graco, Inc.		7,679		533,614
GrafTech International Ltd. *		20,486		160,201
Granite Construction, Inc.		3,932		111,354
Great Lakes Dredge & Dock Corp.		7,000		47,110
Greenbrier Cos., Inc. *		2,700		60,939
Griffon Corp.		5,550		61,217
H&E Equipment Services, Inc.		4,486		108,023
Harsco Corp.		9,873		232,312
HD Supply Holdings, Inc. *		8,816		200,476
HEICO Corp.		5,925		370,312
Hexcel Corp. *		11,426		406,423
Honeywell International, Inc.		95,166		7,572,359
Hubbell, Inc., Class B		6,582		667,152
Huntington Ingalls Industries, Inc.		6,582		416,772
Hyster-Yale Materials Handling, Inc.		1,755		132,696
IDEX Corp.		9,873		586,160
II-VI, Inc. *		8,796		169,587
Illinois Tool Works, Inc.		50,346		3,598,229
Ingersoll-Rand plc		34,383		2,033,411
ITT Corp.		10,970		360,364
Jacobs Engineering Group, Inc. *		15,358		895,064
John Bean Technologies Corp.		3,350		73,399
Joy Global, Inc.		13,164		646,616
Kaman Corp.		3,291		115,843
Kaydon Corp.		5,485		156,048
KBR, Inc.		17,646		526,910
Kennametal, Inc.		9,873		419,800
L-3 Communications Holdings, Inc.		12,067		1,090,012
Lennox International, Inc.		6,582		451,854
Lincoln Electric Holdings, Inc.		10,970		685,954
Lindsay Corp.		1,318		100,194
Lockheed Martin Corp.		32,238		3,946,576
Masco Corp.		46,074		871,720
MasTec, Inc. *		7,161		227,720
Moog, Inc., Class A *		6,582		334,366
MRC Global, Inc. *		12,227		320,959
MSC Industrial Direct Co., Inc., Class A		5,485		416,860
Mueller Industries, Inc.		4,473		239,484
Mueller Water Products, Inc., Class A		18,650		140,808
National Presto Industries, Inc. (a)		500		34,490
Navistar International Corp. *		9,303		318,814
Nordson Corp.		6,582		438,690
Nortek, Inc. *		1,550		103,773
Northrop Grumman Corp.		29,672		2,737,835
Orbital Sciences Corp. *		6,582		114,264
Oshkosh Corp. *		10,970		492,772
Owens Corning *		13,439		503,156
PACCAR, Inc.		43,880		2,352,407
Pall Corp.		14,261		986,006
Parker Hannifin Corp.		18,649		1,863,968
Pentair Ltd. - Reg’d		25,387		1,526,013
Polypore International, Inc. *(a)		5,538		236,750
Powell Industries, Inc. *		1,250		65,913
Precision Castparts Corp.		17,552		3,707,684
Primoris Services Corp.		8,832		198,543
Proto Labs, Inc. *		1,247		88,587
Quanex Building Products Corp.		4,432		73,748
Quanta Services, Inc. *		25,484		666,152
Raven Industries, Inc.		4,388		128,173
Raytheon Co.		39,820		3,002,826
RBC Bearings, Inc. *		3,291		196,571
Regal-Beloit Corp.		5,485		349,395
Rockwell Automation, Inc.		17,552		1,706,581
Rockwell Collins, Inc.		16,849		1,192,404
Roper Industries, Inc.		12,067		1,492,688
Rush Enterprises, Inc., Class A *		3,680		92,110
Sensata Technologies Holding N.V. *		15,193		566,395
Simpson Manufacturing Co., Inc.		6,582		205,819
Snap-On, Inc.		6,882		644,155
Solarcity Corp. *		4,784		149,931
Spirit AeroSystems Holdings, Inc., Class A *		13,651		308,240
SPX Corp.		6,582		487,331
Standex International Corp.		1,097		58,569
Stanley Black & Decker, Inc.		20,843		1,777,074
Sun Hydraulics Corp.		2,665		81,656
TAL International Group, Inc. *(a)		3,303		141,368
Teledyne Technologies, Inc. *		4,435		342,249
Tennant Co.		3,291		169,059
Terex Corp. *		14,261		413,569
Textainer Group Holdings Ltd. (a)		4,513		157,323
Textron, Inc.		34,007		916,149
The Babcock & Wilcox Co.		14,261		441,948
The Boeing Co.		82,454		8,568,620
The Gorman-Rupp Co.		1,650		57,701
The Manitowoc Co., Inc.		18,649		372,607
The Middleby Corp. *		2,227		414,088
The Toro Co.		6,876		363,122
Thermon Group Holdings, Inc. *		2,200		45,540
Timken Co.		9,873		553,480
Titan International, Inc.		4,388		71,261
TransDigm Group, Inc.		5,514		755,418
Trex Co., Inc. *		1,450		64,192
TriMas Corp. *		3,589		126,117
Trinity Industries, Inc.		9,873		416,838
Triumph Group, Inc.		5,787		416,490
Tutor Perini Corp. *		4,996		95,823
United Rentals, Inc. *		11,103		608,111
United Technologies Corp.		102,345		10,244,734
Universal Forest Products, Inc.		2,266		84,839
URS Corp.		9,873		488,911
USG Corp. *		10,349		241,546
Valmont Industries, Inc.		2,541		342,933
W.W. Grainger, Inc.		7,055		1,745,054
Wabash National Corp. *		7,950		82,839
WABCO Holdings, Inc. *		7,679		598,885
Wabtec Corp.		11,170		653,668
Watsco, Inc.		3,291		295,532

24 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Watts Water Technologies, Inc., Class A		3,385		175,377
WESCO International, Inc. *		5,485		404,628
Woodward, Inc.		6,582		253,802
Xylem, Inc.		21,940		543,673

				178,441,865

Commercial & Professional Services 1.1%
ABM Industries, Inc.		4,944		119,398
Acacia Research Corp.		5,738		126,064
Acco Brands Corp. *		13,164		86,751
Cintas Corp.		14,261		681,105
Clean Harbors, Inc. *		6,582		374,055
Copart, Inc. *		13,604		432,199
Covanta Holding Corp.		16,455		347,694
Deluxe Corp.		6,582		259,002
Equifax, Inc.		15,358		907,504
Exponent, Inc.		1,383		90,075
FTI Consulting, Inc. *		6,582		220,102
G&K Services, Inc., Class A		3,291		169,289
Healthcare Services Group, Inc.		8,776		212,467
Herman Miller, Inc.		6,838		174,164
HNI Corp.		6,582		220,365
Huron Consulting Group, Inc. *		2,194		104,434
ICF International, Inc. *		2,400		78,936
IHS, Inc., Class A *		5,818		623,399
Innerworkings, Inc. *		4,500		46,215
Insperity, Inc.		3,300		105,270
Interface, Inc.		6,817		120,388
Iron Mountain, Inc.		20,215		521,547
KAR Auction Services, Inc.		9,273		247,033
Kelly Services, Inc., Class A		3,750		68,250
Kforce, Inc.		4,500		73,215
Kimball International, Inc., Class B		4,400		43,296
Knoll, Inc.		5,662		86,232
Korn/Ferry International *		5,555		98,379
Manpowergroup, Inc.		9,873		640,264
McGrath Rentcorp		2,596		85,876
Mine Safety Appliances Co.		3,606		173,557
Mistras Group, Inc. *		2,400		43,752
Mobile Mini, Inc. *		4,388		133,307
Navigant Consulting, Inc. *		6,634		90,554
Nielsen Holdings N.V.		25,275		871,988
On Assignment, Inc. *		4,432		133,713
Performant Financial Corp. *		4,700		50,901
Pitney Bowes, Inc. (a)		25,231		411,770
Quad/Graphics, Inc.		10,262		321,611
R.R. Donnelley & Sons Co. (a)		21,757		362,907
Republic Services, Inc.		37,298		1,212,558
Robert Half International, Inc.		18,649		657,750
Rollins, Inc.		8,932		221,067
Steelcase, Inc., Class A		9,222		133,903
Stericycle, Inc. *		10,970		1,234,783
Team, Inc. *		3,291		128,349
Tetra Tech, Inc. *		7,182		163,606
The ADT Corp. *		27,754		1,105,442
The Advisory Board Co. *		4,388		240,331
The Brink’s Co.		6,582		170,013
The Corporate Executive Board Co.		3,681		238,676
The Dun & Bradstreet Corp.		4,982		495,609
Towers Watson & Co., Class A		6,758		555,846
TrueBlue, Inc. *		6,582		160,074
Tyco International Ltd.		55,947		1,848,489
UniFirst Corp.		2,194		210,361
United Stationers, Inc.		6,582		261,569
Verisk Analytics, Inc., Class A *		17,552		1,091,383
Viad Corp.		2,400		54,168
WageWorks, Inc. *		2,800		116,872
Waste Connections, Inc.		14,691		622,311
Waste Management, Inc.		52,656		2,129,409
West Corp.		2,669		58,371

				23,067,968

Consumer Durables & Apparel 1.5%
Arctic Cat, Inc.		2,194		117,774
Brunswick Corp.		10,970		398,869
Carter’s, Inc.		5,813		428,069
Coach, Inc.		35,104		1,853,842
Columbia Sportswear Co. (a)		2,194		124,158
Crocs, Inc. *		12,118		163,108
D.R. Horton, Inc.		35,104		626,606
Deckers Outdoor Corp. *		3,991		234,391
Ethan Allen Interiors, Inc.		2,766		72,110
Fifth & Pacific Cos., Inc. *		13,405		319,575
Fossil Group, Inc. *		6,582		764,434
G-III Apparel Group Ltd. *		1,550		71,006
Garmin Ltd.		14,261		581,421
Hanesbrands, Inc.		12,067		717,745
Harman International Industries, Inc.		8,776		561,840
Hasbro, Inc.		14,261		650,016
Helen of Troy Ltd. *		5,485		220,387
Iconix Brand Group, Inc. *		8,790		288,488
iRobot Corp. *		2,805		91,639
Jarden Corp. *		13,848		594,772
KB Home		9,070		145,392
La-Z-Boy, Inc.		8,776		186,578
Leapfrog Enterprises, Inc. *		6,069		58,384
Leggett & Platt, Inc.		16,796		485,740
Lennar Corp., Class A		19,249		612,311
M.D.C Holdings, Inc.		5,485		152,648
Maidenform Brands, Inc. *		2,600		60,944
Mattel, Inc.		40,965		1,659,083
Meritage Homes Corp. *		3,600		143,712
Michael Kors Holdings Ltd. *		21,235		1,573,301
Mohawk Industries, Inc. *		7,843		921,474
Movado Group, Inc.		2,466		105,076
NACCO Industries, Inc., Class A		1,097		60,971
Newell Rubbermaid, Inc.		35,104		888,131
NIKE, Inc., Class B		88,106		5,534,819
NVR, Inc. *		648		554,565
Oxford Industries, Inc.		2,196		136,240
Polaris Industries, Inc.		7,793		851,074
PulteGroup, Inc.		41,686		641,548
PVH Corp.		10,256		1,320,460
Quiksilver, Inc. *		16,970		84,002
Ralph Lauren Corp.		7,679		1,270,183
Skechers U.S.A., Inc., Class A *		4,632		142,341
Smith & Wesson Holding Corp. *		5,485		60,006
Standard Pacific Corp. *		19,783		141,251
Steven Madden Ltd. *		5,485		296,190

See financial notes 25

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Sturm Ruger & Co., Inc. (a)		2,247		117,675
Taylor Morrison Home Corp., Class A *		4,081		84,109
Tempur Sealy International, Inc. *		7,679		295,718
The Jones Group, Inc.		8,776		129,270
The Ryland Group, Inc.		4,858		169,156
Toll Brothers, Inc. *		18,649		570,846
Tumi Holdings, Inc. *		7,757		159,484
Tupperware Brands Corp.		7,679		620,233
Under Armour, Inc., Class A *		9,004		654,051
VF Corp.		10,320		1,932,007
Whirlpool Corp.		9,176		1,180,492
Wolverine World Wide, Inc.		6,582		370,238

				33,249,953

Consumer Services 2.2%
AFC Enterprises, Inc. *		3,291		134,766
American Public Education, Inc. *		2,196		87,884
Apollo Group, Inc., Class A *		8,190		152,088
Ascent Capital Group, Inc., Class A *		1,483		109,505
Bally Technologies, Inc. *		4,782		344,926
BJ’s Restaurants, Inc. *		3,291		102,811
Bloomin’ Brands, Inc. *		9,128		205,380
Bob Evans Farms, Inc.		3,426		167,977
Boyd Gaming Corp. *		6,232		75,532
Bright Horizons Family Solutions, Inc. *		5,108		185,982
Brinker International, Inc.		9,271		370,747
Buffalo Wild Wings, Inc. *		2,208		229,433
Burger King Worldwide, Inc.		10,970		214,573
Caesars Entertainment Corp. *(a)		12,202		261,977
Carnival Corp.		53,842		1,943,158
Chipotle Mexican Grill, Inc. *		3,827		1,562,067
Choice Hotels International, Inc.		3,319		127,383
Churchill Downs, Inc.		1,434		116,154
Cracker Barrel Old Country Store, Inc.		3,291		323,900
Darden Restaurants, Inc.		16,455		760,385
Denny’s Corp. *		11,200		62,944
DeVry, Inc.		4,680		140,447
DineEquity, Inc.		1,541		102,122
Domino’s Pizza, Inc.		6,732		413,614
Dunkin’ Brands Group, Inc.		8,819		380,011
Grand Canyon Education, Inc. *		3,749		129,378
H&R Block, Inc.		35,274		984,497
Hillenbrand, Inc.		8,776		217,294
Hyatt Hotels Corp., Class A *		6,688		290,259
International Game Technology		32,048		605,387
International Speedway Corp., Class A		3,433		106,389
Interval Leisure Group, Inc.		5,678		122,645
ITT Educational Services, Inc. *(a)		3,696		106,482
Jack in the Box, Inc. *		4,944		195,239
K12, Inc. *		4,388		159,328
Krispy Kreme Doughnuts, Inc. *		7,850		154,802
Las Vegas Sands Corp.		42,315		2,384,450
Life Time Fitness, Inc. *		4,633		231,604
Marriott International, Inc., Class A		30,049		1,201,659
Marriott Vacations Worldwide Corp. *		3,493		152,295
Matthews International Corp., Class A		4,388		161,917
McDonald’s Corp.		121,814		11,494,369
MGM Resorts International *		44,338		784,339
Multimedia Games Holding Co., Inc. *		5,204		204,205
Norwegian Cruise Line Holdings Ltd. *		5,923		184,146
Orient-Express Hotels Ltd., Class A *		10,970		132,737
Outerwall, Inc. *(a)		3,364		209,140
Panera Bread Co., Class A *		3,405		558,488
Papa John’s International, Inc. *		2,322		158,198
Penn National Gaming, Inc. *		7,879		414,357
Pinnacle Entertainment, Inc. *		7,181		170,046
Red Robin Gourmet Burgers, Inc. *		3,102		201,196
Regis Corp.		6,838		107,904
Royal Caribbean Cruises Ltd.		17,055		625,748
SeaWorld Entertainment, Inc.		2,714		81,230
Service Corp. International		25,666		464,041
SHFL Entertainment, Inc. *		6,013		136,916
Six Flags Entertainment Corp.		13,170		434,742
Sonic Corp. *		7,679		122,557
Sotheby’s		7,775		358,505
Starbucks Corp.		91,824		6,475,428
Starwood Hotels & Resorts Worldwide, Inc.		23,437		1,498,562
Steiner Leisure Ltd. *		1,466		81,685
Stewart Enterprises, Inc., Class A		9,873		129,139
Strayer Education, Inc. (a)		1,398		55,864
Texas Roadhouse, Inc.		7,679		190,823
The Cheesecake Factory, Inc.		5,927		247,571
The Wendy’s Co.		44,977		340,026
Vail Resorts, Inc.		4,388		298,384
Weight Watchers International, Inc. (a)		2,794		100,416
WMS Industries, Inc. *		5,485		140,964
Wyndham Worldwide Corp.		16,849		1,000,157
Wynn Resorts Ltd.		9,873		1,392,488
Yum! Brands, Inc.		54,897		3,843,888

				48,417,650

Diversified Financials 7.3%
Affiliated Managers Group, Inc. *		6,582		1,147,374
American Express Co.		115,303		8,291,439
Ameriprise Financial, Inc.		24,264		2,090,344
Artisan Partners Asset Management, Inc.		4,728		226,897
Bank of America Corp.		1,303,848		18,410,334
Berkshire Hathaway, Inc., Class B *		220,067		24,475,852
BlackRock, Inc.		15,006		3,906,362
Capital One Financial Corp.		70,208		4,531,926
Cash America International, Inc.		3,434		146,907
CBOE Holdings, Inc.		12,109		555,682
Citigroup, Inc.		368,135		17,791,965
CME Group, Inc.		36,595		2,602,271
Cohen & Steers, Inc. (a)		3,291		102,679
Credit Acceptance Corp. *		1,097		117,982
DFC Global Corp. *		4,388		49,584
Discover Financial Services		59,137		2,794,223

26 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


		Number		Value
Security		of Shares		($)
ETRADE Financial Corp.			34,455		483,748
Eaton Vance Corp.			14,261		549,762
Encore Capital Group, Inc. *			2,466		105,717
Evercore Partners, Inc., Class A			5,358		238,913
EZCORP, Inc., Class A *			6,582		111,762
Federated Investors, Inc., Class B (a)			13,164		357,534
Financial Engines, Inc.			5,485		293,173
First Cash Financial Services, Inc. *			3,306		182,723
Franklin Resources, Inc.			49,827		2,300,014
GAMCO Investors, Inc., Class A			1,569		90,186
Greenhill & Co., Inc.			2,788		132,123
HFF, Inc., Class A			5,485		126,155
ING US, Inc.			7,142		205,690
Interactive Brokers Group, Inc., Class A			4,979		83,548
IntercontinentalExchange, Inc. *			8,776		1,577,486
Invesco Ltd.			55,947		1,698,551
Janus Capital Group, Inc.			21,940		183,418
JPMorgan Chase & Co.			457,204		23,102,518
KCG Holdings, Inc., Class A *			7,162		62,166
Legg Mason, Inc.			15,509		504,353
Leucadia National Corp.			35,601		887,533
LPL Financial Holdings, Inc.			3,932		144,619
MarketAxess Holdings, Inc.			3,660		185,782
McGraw Hill Financial, Inc.			34,007		1,984,989
Moody’s Corp.			23,231		1,476,562
Morgan Stanley			166,244		4,282,445
MSCI, Inc. *			15,358		576,079
Nelnet, Inc., Class A			3,367		127,542
NewStar Financial, Inc. *			5,620		74,015
Northern Trust Corp.			26,328		1,444,617
NYSE Euronext			29,330		1,225,994
PHH Corp. *			6,770		141,290
PICO Holdings, Inc. *	��		2,500		52,725
Piper Jaffray Cos., Inc. *			3,696		120,157
Portfolio Recovery Associates, Inc. *			6,582		349,109
Raymond James Financial, Inc.			13,350		558,431
SEI Investments Co.			15,946		474,553
SLM Corp.			56,429		1,353,732
State Street Corp.			55,000		3,669,600
Stifel Financial Corp. *			7,257		290,425
T. Rowe Price Group, Inc.			30,716		2,154,420
TD Ameritrade Holding Corp.			28,522		732,160
The Bank of New York Mellon Corp.			140,960		4,192,150
The Charles Schwab Corp. (b)			131,904		2,754,156
The Goldman Sachs Group, Inc.			51,941		7,901,784
The NASDAQ OMX Group, Inc.			14,349		428,461
Virtus Investment Partners, Inc. *			1,327		231,296
Waddell & Reed Financial, Inc., Class A			10,173		484,438
Walter Investment Management Corp. *			3,349		122,875
WisdomTree Investments, Inc. *			13,164		147,437
World Acceptance Corp. *			2,194		187,960

					158,388,697

Energy 9.8%
Alon USA Energy, Inc.			4,996		62,050
Alpha Natural Resources, Inc. *			24,134		146,735
Anadarko Petroleum Corp.			60,335		5,515,826
Apache Corp.			47,171		4,041,611
Approach Resources, Inc. *			3,341		77,845
Arch Coal, Inc. (a)			25,198		112,635
Atwood Oceanics, Inc. *			6,582		366,486
Baker Hughes, Inc.			52,656		2,447,977
Berry Petroleum Co., Class A			6,582		270,849
Bill Barrett Corp. *			10,585		227,895
Bonanza Creek Energy, Inc. *			2,500		99,250
Bristow Group, Inc.			3,885		255,245
C&J Energy Services, Inc. *			5,005		102,753
Cabot Oil & Gas Corp.			52,656		2,060,429
Cameron International Corp. *			30,716		1,744,362
CARBO Ceramics, Inc. (a)			2,341		191,002
Carrizo Oil & Gas, Inc. *			4,388		150,333
Cheniere Energy, Inc. *			29,106		814,677
Chesapeake Energy Corp.			62,687		1,617,952
Chevron Corp.			234,991		28,299,966
Cimarex Energy Co.			10,970		919,396
Clean Energy Fuels Corp. *(a)			7,679		96,602
Cloud Peak Energy, Inc. *			7,679		120,868
Cobalt International Energy, Inc. *			33,352		813,789
Comstock Resources, Inc.			5,485		80,081
Concho Resources, Inc. *			12,414		1,198,075
ConocoPhillips			148,507		9,846,014
CONSOL Energy, Inc.			26,951		841,680
Continental Resources, Inc. *			6,782		625,707
Core Laboratories N.V.			5,505		834,063
Crosstex Energy, Inc.			6,087		118,757
CVR Energy, Inc.			2,194		93,947
Delek US Holdings, Inc.			3,472		86,314
Denbury Resources, Inc. *			47,220		816,434
Devon Energy Corp.			46,074		2,630,365
Diamond Offshore Drilling, Inc.			8,079		517,298
Diamondback Energy, Inc. *			3,772		151,785
Dresser-Rand Group, Inc. *			8,925		543,890
Dril-Quip, Inc. *			4,435		452,414
Energen Corp.			8,776		581,937
Energy XXI Bermuda Ltd.			9,388		249,439
Ensco plc, Class A			27,550		1,530,678
EOG Resources, Inc.			32,910		5,168,516
EPL Oil & Gas, Inc. *			5,515		186,628
EQT Corp.			18,649		1,598,592
Era Group, Inc. *			2,194		54,477
EXCO Resources, Inc.			18,649		135,765
Exterran Holdings, Inc. *			7,707		211,403
Exxon Mobil Corp.			537,576		46,855,124
FMC Technologies, Inc. *			28,710		1,539,717
Forum Energy Technologies, Inc. *			7,924		207,371
Geospace Technologies Corp. *			1,442		100,594
Gulfmark Offshore, Inc., Class A			3,291		151,320
Gulfport Energy Corp. *			9,559		563,981
Halcon Resources Corp. *(a)			42,783		203,219
Halliburton Co.			104,894		5,034,912
Helix Energy Solutions Group, Inc. *			12,067		302,037
Helmerich & Payne, Inc.			12,467		785,920
Hercules Offshore, Inc. *			19,215		138,348

See financial notes 27

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Hess Corp.		36,201		2,709,645
HollyFrontier Corp.		24,633		1,095,676
Hornbeck Offshore Services, Inc. *		4,388		239,058
ION Geophysical Corp. *		20,843		99,838
Key Energy Services, Inc. *		20,162		134,481
Kinder Morgan, Inc.		75,943		2,880,518
Kodiak Oil & Gas Corp. *		29,655		296,254
Laredo Petroleum Holdings, Inc. *		11,719		307,741
Marathon Oil Corp.		86,663		2,983,807
Marathon Petroleum Corp.		39,103		2,835,359
McDermott International, Inc. *		28,540		214,050
Murphy Oil Corp.		23,037		1,553,155
Nabors Industries Ltd.		36,201		557,495
National Oilwell Varco, Inc.		51,559		3,830,834
Newfield Exploration Co. *		16,242		386,884
Newpark Resources, Inc. *		11,000		122,430
Noble Corp.		30,959		1,151,675
Noble Energy, Inc.		43,880		2,695,548
Oasis Petroleum, Inc. *		8,776		344,019
Occidental Petroleum Corp.		98,730		8,708,973
Oceaneering International, Inc.		13,164		1,021,263
Oil States International, Inc. *		6,582		587,246
Parker Drilling Co. *		13,745		78,896
Patterson-UTI Energy, Inc.		19,746		386,824
PDC Energy, Inc. *		4,388		251,783
Peabody Energy Corp.		34,007		584,920
Phillips 66		76,790		4,384,709
Pioneer Energy Services Corp. *		7,211		48,746
Pioneer Natural Resources Co.		16,462		2,880,356
QEP Resources, Inc.		21,007		573,911
Range Resources Corp.		19,746		1,480,555
Rentech, Inc.		44,320		85,538
Resolute Energy Corp. *		9,947		77,985
Rex Energy Corp. *		8,864		184,371
Rosetta Resources, Inc. *		8,790		408,999
Rowan Cos. plc, Class A *		15,358		543,980
RPC, Inc. (a)		17,598		251,299
Sanchez Energy Corp. *(a)		3,872		93,548
SandRidge Energy, Inc. *(a)		42,227		217,469
Schlumberger Ltd.		160,862		13,020,170
SEACOR Holdings, Inc.		2,194		182,278
SemGroup Corp., Class A		5,485		290,376
SM Energy Co.		7,679		524,629
Solazyme, Inc. *(a)		6,598		74,228
Southwestern Energy Co. *		41,686		1,592,405
Spectra Energy Corp.		80,235		2,656,581
Stone Energy Corp. *		5,835		159,879
Superior Energy Services, Inc. *		18,949		465,387
Swift Energy Co. *		5,490		61,927
Targa Resources Corp.		4,388		298,779
Teekay Corp.		4,634		185,128
Tesoro Corp.		17,552		808,972
TETRA Technologies, Inc. *		9,916		116,513
The Williams Cos., Inc.		81,186		2,942,181
Tidewater, Inc.		6,582		355,165
Transocean Ltd.		43,880		1,980,304
Ultra Petroleum Corp. *		18,649		386,034
Unit Corp. *		5,485		252,584
VAALCO Energy, Inc. *		9,947		55,305
Valero Energy Corp.		68,014		2,416,537
W&T Offshore, Inc.		10,970		169,487
Weatherford International Ltd. *		91,051		1,357,570
Western Refining, Inc.		7,679		225,225
Whiting Petroleum Corp. *		13,758		694,366
World Fuel Services Corp.		8,776		334,804
WPX Energy, Inc. *		23,216		433,211

				214,323,198

Food & Staples Retailing 2.0%
Casey’s General Stores, Inc.		5,485		361,681
Costco Wholesale Corp.		52,656		5,890,627
CVS Caremark Corp.		150,431		8,732,520
Harris Teeter Supermarkets, Inc.		5,696		279,958
PriceSmart, Inc.		2,194		188,618
Rite Aid Corp. *		93,929		324,994
Safeway, Inc.		28,741		744,392
Spartan Stores, Inc.		4,432		91,122
Sprouts Farmers Market, Inc. *		3,018		111,545
SUPERVALU, Inc. *		25,350		181,759
Susser Holdings Corp. *		1,650		78,722
Sysco Corp.		71,305		2,283,186
The Andersons, Inc.		3,291		216,087
The Fresh Market, Inc. *		4,688		228,821
The Kroger Co.		63,868		2,337,569
United Natural Foods, Inc. *		5,485		332,556
Wal-Mart Stores, Inc.		197,648		14,424,351
Walgreen Co.		104,490		5,022,834
Weis Markets, Inc.		2,194		103,074
Whole Foods Market, Inc.		42,356		2,234,279

				44,168,695

Food, Beverage & Tobacco 4.9%
Altria Group, Inc.		243,090		8,235,889
Annie’s, Inc. *		1,150		52,819
Archer-Daniels-Midland Co.		79,145		2,786,695
B&G Foods, Inc.		6,582		222,932
Beam, Inc.		18,749		1,174,625
Boulder Brands, Inc. *		5,485		85,347
Brown-Forman Corp., Class B		17,946		1,202,203
Bunge Ltd.		17,552		1,330,091
Cal-Maine Foods, Inc.		1,450		66,163
Campbell Soup Co.		21,431		925,391
Coca-Cola Enterprises, Inc.		31,038		1,160,821
ConAgra Foods, Inc.		49,509		1,674,394
Constellation Brands, Inc., Class A *		17,734		962,069
Darling International, Inc. *		14,261		288,500
Dean Foods Co. *		11,123		213,117
Dole Food Co., Inc. *		4,400		60,368
Dr. Pepper Snapple Group, Inc.		25,404		1,137,083
Flowers Foods, Inc.		20,478		425,738
Fresh Del Monte Produce, Inc.		5,485		158,297
General Mills, Inc.		78,046		3,849,229
Green Mountain Coffee Roasters, Inc. *		15,511		1,338,754
Hillshire Brands Co.		14,279		461,354
Hormel Foods Corp.		17,552		727,179
Ingredion, Inc.		9,873		621,407
J&J Snack Foods Corp.		2,246		172,762
Kellogg Co.		31,242		1,896,702
Kraft Foods Group, Inc.		71,472		3,700,105
Lancaster Colony Corp.		2,206		162,737

28 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Lorillard, Inc.		46,815		1,980,274
McCormick & Co., Inc. Non Voting Shares		15,758		1,066,029
Mead Johnson Nutrition Co.		25,231		1,893,082
Molson Coors Brewing Co., Class B		18,649		909,885
Mondelez International, Inc., Class A		214,315		6,573,041
Monster Beverage Corp. *		17,588		1,009,375
PepsiCo, Inc.		187,283		14,932,074
Philip Morris International, Inc.		197,225		16,456,454
Pilgrim’s Pride Corp. *		10,250		157,132
Pinnacle Foods, Inc.		6,962		188,670
Post Holdings, Inc. *		3,291		140,526
Reynolds American, Inc.		39,720		1,891,864
Sanderson Farms, Inc.		3,291		215,495
Seaboard Corp.		76		203,680
Smithfield Foods, Inc. *		14,853		498,021
Snyders-Lance, Inc.		6,582		177,056
The Boston Beer Co., Inc., Class A *		1,097		232,388
The Coca-Cola Co.		462,331		17,651,798
The Hain Celestial Group, Inc. *		5,485		448,563
The Hershey Co.		18,649		1,714,776
The J.M. Smucker Co.		13,211		1,402,215
Tootsie Roll Industries, Inc. (a)		3,427		102,776
TreeHouse Foods, Inc. *		4,388		285,352
Tyson Foods, Inc., Class A		34,007		984,503
Universal Corp.		3,291		161,325
Vector Group Ltd.		6,079		99,270
WhiteWave Foods Co., Class A *		16,659		318,520

				106,786,915

Health Care Equipment & Services 4.5%
Abaxis, Inc.		2,805		109,900
Abbott Laboratories		190,905		6,362,864
ABIOMED, Inc. *		3,756		88,454
Acadia Healthcare Co., Inc. *		8,330		319,289
Aetna, Inc.		46,144		2,925,068
Air Methods Corp.		3,633		148,662
Alere, Inc. *		9,873		307,741
Align Technology, Inc. *		8,274		360,333
Allscripts Healthcare Solutions, Inc. *		23,037		334,958
AmerisourceBergen Corp.		28,113		1,600,192
AmSurg Corp. *		3,549		132,342
Analogic Corp.		1,301		97,107
ArthroCare Corp. *		3,385		107,203
athenahealth, Inc. *		4,388		462,890
Baxter International, Inc.		66,917		4,654,747
Becton Dickinson & Co.		23,637		2,301,771
Bio-Reference Labs, Inc. *(a)		2,766		80,020
BioScrip, Inc. *		6,700		81,740
Boston Scientific Corp. *		171,249		1,811,814
Brookdale Senior Living, Inc. *		10,970		274,469
C.R. Bard, Inc.		9,137		1,049,567
Cantel Medical Corp.		4,941		127,972
Cardinal Health, Inc.		40,883		2,055,597
CareFusion Corp. *		27,425		983,186
Centene Corp. *		6,582		376,161
Cerner Corp. *		35,104		1,616,890
Chemed Corp.		2,241		156,063
Cigna Corp.		35,232		2,772,406
Community Health Systems, Inc.		12,067		473,750
Computer Programs & Systems, Inc.		1,294		71,118
CONMED Corp.		3,328		103,468
Covidien plc		58,141		3,453,575
Cyberonics, Inc. *		2,588		131,652
DaVita HealthCare Partners, Inc. *		10,167		1,093,054
DENTSPLY International, Inc.		17,552		737,008
Dexcom, Inc. *		9,873		267,065
Edwards Lifesciences Corp. *		14,261		1,003,689
Emeritus Corp. *		3,479		75,877
Endologix, Inc. *		6,703		106,041
Express Scripts Holding Co. *		98,333		6,281,512
Globus Medical, Inc., Class A *		7,111		125,296
Greatbatch, Inc. *		2,600		88,322
Haemonetics Corp. *		6,582		262,293
Hanger, Inc. *		3,824		117,435
HCA Holdings, Inc.		29,229		1,116,256
Health Management Associates, Inc., Class A *		31,813		409,115
Health Net, Inc. *		12,067		364,182
HEALTHSOUTH Corp. *		10,970		345,116
HealthStream, Inc. *		2,300		76,245
HeartWare International, Inc. *		1,627		127,882
Henry Schein, Inc. *		10,970		1,108,519
Hill-Rom Holdings, Inc.		7,679		262,161
HMS Holdings Corp. *		10,047		251,075
Hologic, Inc. *		30,716		655,479
Humana, Inc.		19,746		1,818,212
ICU Medical, Inc. *		1,283		91,709
IDEXX Laboratories, Inc. *		6,596		618,837
Insulet Corp. *		5,485		182,870
Integra LifeSciences Holdings Corp. *		3,305		134,315
Intuitive Surgical, Inc. *		4,877		1,885,058
IPC The Hospitalist Co. *		1,583		81,430
Kindred Healthcare, Inc.		10,970		161,259
Laboratory Corp. of America Holdings *		12,067		1,155,053
Landauer, Inc.		1,150		54,602
LifePoint Hospitals, Inc. *		6,582		297,704
Magellan Health Services, Inc. *		4,388		246,649
Masimo Corp.		6,582		162,839
McKesson Corp.		28,522		3,462,856
MedAssets, Inc. *		6,608		148,151
Medidata Solutions, Inc. *		2,805		250,879
MEDNAX, Inc. *		5,785		563,285
Medtronic, Inc.		123,005		6,365,509
Meridian Bioscience, Inc.		7,679		172,701
Merit Medical Systems, Inc. *		5,485		70,208
Molina Healthcare, Inc. *		3,480		116,197
MWI Veterinary Supply, Inc. *		1,344		204,396
National Healthcare Corp.		1,150		53,061
Neogen Corp. *		3,291		178,043
NuVasive, Inc. *		5,672		133,405
NxStage Medical, Inc. *		6,582		81,288
Omnicare, Inc.		14,261		775,371
Omnicell, Inc. *		3,650		79,351
Orthofix International N.V. *		2,232		49,260
Owens & Minor, Inc.		7,679		261,931

See financial notes 29

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Patterson Cos., Inc.		10,067		401,472
Quest Diagnostics, Inc.		18,949		1,110,790
Quidel Corp. *		3,880		102,898
ResMed, Inc. (a)		17,552		829,156
Select Medical Holdings Corp.		10,185		86,267
Sirona Dental Systems, Inc. *		6,657		431,174
St. Jude Medical, Inc.		37,881		1,909,581
STERIS Corp.		6,582		269,138
Stryker Corp.		34,501		2,307,772
Team Health Holdings, Inc. *		8,207		315,395
Teleflex, Inc.		5,485		422,784
Tenet Healthcare Corp. *		14,602		570,208
The Cooper Cos., Inc.		5,485		716,396
The Ensign Group, Inc.		1,650		63,773
Thoratec Corp. *		6,582		235,175
Triple-S Management Corp., Class B *		3,604		67,215
UnitedHealth Group, Inc.		124,355		8,921,228
Universal American Corp.		9,873		72,073
Universal Health Services, Inc., Class B		10,970		743,218
Vanguard Health Systems, Inc. *		8,173		171,224
Varian Medical Systems, Inc. *		13,369		941,846
VCA Antech, Inc. *		9,873		269,434
Volcano Corp. *		6,582		140,986
WellCare Health Plans, Inc. *		5,485		349,230
WellPoint, Inc.		36,541		3,111,101
West Pharmaceutical Services, Inc.		4,388		324,493
Wright Medical Group, Inc. *		6,582		158,429
Zimmer Holdings, Inc.		20,990		1,660,099

				97,365,575

Household & Personal Products 2.0%
Avon Products, Inc.		51,559		1,019,321
Church & Dwight Co., Inc.		17,552		1,041,711
Colgate-Palmolive Co.		107,706		6,222,176
Coty, Inc., Class A *		10,543		171,851
Elizabeth Arden, Inc. *		2,688		93,354
Energizer Holdings, Inc.		7,793		770,182
Harbinger Group, Inc. *		6,900		63,411
Herbalife Ltd. (a)		14,261		870,064
Kimberly-Clark Corp.		46,609		4,357,009
Nu Skin Enterprises, Inc., Class A		7,679		642,809
Prestige Brands Holdings, Inc. *		5,778		187,612
Revlon, Inc., Class A *		3,650		81,687
Spectrum Brands Holdings, Inc.		2,636		159,583
The Clorox Co.		15,505		1,282,264
The Estee Lauder Cos., Inc., Class A		28,822		1,883,806
The Procter & Gamble Co.		330,743		25,761,572
WD-40 Co.		1,525		88,725

				44,697,137

Insurance 3.2%
ACE Ltd.		40,789		3,578,011
Aflac, Inc.		57,044		3,296,573
Alleghany Corp. *		2,194		849,275
Allied World Assurance Co. Holdings AG		4,388		402,511
Ambac Financial Group, Inc. *		7,162		158,710
American Equity Investment Life Holding Co.		7,181		142,256
American Financial Group, Inc.		9,322		480,363
American International Group, Inc. *		178,101		8,274,572
American National Insurance Co.		1,128		118,406
AMERISAFE, Inc.		2,200		71,698
AmTrust Financial Services, Inc. (a)		3,825		136,640
Aon plc		37,391		2,482,015
Arch Capital Group Ltd. *		16,455		877,216
Argo Group International Holdings Ltd.		4,789		195,583
Arthur J. Gallagher & Co.		15,358		634,900
Aspen Insurance Holdings Ltd.		8,776		312,162
Assurant, Inc.		9,378		497,409
Assured Guaranty Ltd.		23,270		462,840
Axis Capital Holdings Ltd.		14,302		614,843
Brown & Brown, Inc.		14,261		444,088
Cincinnati Financial Corp.		18,649		851,886
CNA Financial Corp.		4,404		155,373
CNO Financial Group, Inc.		27,833		378,251
Employers Holdings, Inc.		4,388		116,326
Endurance Specialty Holdings Ltd.		5,260		263,631
Enstar Group Ltd. *		1,097		147,843
Erie Indemnity Co., Class A		3,305		243,777
Everest Re Group Ltd.		6,021		824,576
FBL Financial Group, Inc., Class A		2,466		108,701
Fidelity National Financial, Inc., Class A		25,372		601,570
First American Financial Corp.		13,164		275,128
Genworth Financial, Inc., Class A *		58,141		686,064
Greenlight Capital Re Ltd., Class A *		3,291		88,363
Hartford Financial Services Group, Inc.		52,745		1,561,252
HCC Insurance Holdings, Inc.		13,164		555,521
Hilltop Holdings, Inc. *		15,420		241,477
Horace Mann Educators Corp.		4,993		131,616
Infinity Property & Casualty Corp.		1,097		66,379
Kemper Corp.		6,582		223,459
Lincoln National Corp.		33,351		1,402,076
Loews Corp.		37,533		1,668,717
Maiden Holdings Ltd.		5,850		76,518
Markel Corp. *		1,497		764,518
Marsh & McLennan Cos., Inc.		65,354		2,694,545
MBIA, Inc. *		18,064		213,697
Mercury General Corp.		4,388		192,545
MetLife, Inc.		131,297		6,064,608
Montpelier Re Holdings Ltd.		6,723		167,067
Old Republic International Corp.		28,666		407,057
OneBeacon Insurance Group Ltd., Class A		3,127		44,654
PartnerRe Ltd.		7,102		618,939
Platinum Underwriters Holdings Ltd.		3,685		212,919
Primerica, Inc.		5,485		203,658
Principal Financial Group, Inc.		34,049		1,393,285
ProAssurance Corp.		7,454		351,382
Protective Life Corp.		9,873		412,593
Prudential Financial, Inc.		56,141		4,203,838
Reinsurance Group of America, Inc.		8,776		568,773

30 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
RenaissanceRe Holdings Ltd.		5,521		482,535
RLI Corp.		2,194		171,329
Safety Insurance Group, Inc.		2,194		110,007
Selective Insurance Group, Inc.		6,582		150,925
StanCorp Financial Group, Inc.		5,485		286,975
Symetra Financial Corp.		9,103		157,209
The Allstate Corp.		56,220		2,694,062
The Chubb Corp.		31,932		2,655,784
The Hanover Insurance Group, Inc.		6,582		350,623
The Navigators Group, Inc. *		1,103		60,367
The Progressive Corp.		68,425		1,715,415
The Travelers Cos., Inc.		46,103		3,683,630
Torchmark Corp.		11,114		765,643
Tower Group International Ltd.		4,873		68,856
United Fire Group, Inc.		2,400		68,856
Unum Group		32,201		950,896
Validus Holdings Ltd.		11,209		387,944
W.R. Berkley Corp.		13,308		547,225
White Mountains Insurance Group Ltd.		512		286,592
Willis Group Holdings plc		20,698		854,413
XL Group plc		34,771		1,027,831

				70,689,770

Materials 3.8%
A. Schulman, Inc.		3,444		92,850
Air Products & Chemicals, Inc.		25,384		2,592,722
Airgas, Inc.		8,093		822,653
Albemarle Corp.		10,970		684,199
Alcoa, Inc.		127,556		982,181
Allegheny Technologies, Inc.		12,567		335,665
AMCOL International Corp.		2,752		90,733
American Vanguard Corp.		2,566		64,355
Aptargroup, Inc.		7,679		451,602
Ashland, Inc.		8,776		765,355
Avery Dennison Corp.		13,164		562,893
Axiall Corp.		8,791		351,904
Balchem Corp.		4,388		210,010
Ball Corp.		18,791		834,696
Bemis Co., Inc.		13,164		523,796
Berry Plastics Group, Inc. *		9,228		212,336
Boise, Inc.		14,261		121,932
Cabot Corp.		7,679		307,083
Calgon Carbon Corp. *		6,652		114,414
Carpenter Technology Corp.		5,485		294,928
Celanese Corp., Series A		19,746		972,293
CF Industries Holdings, Inc.		7,679		1,461,621
Chemtura Corp. *		13,164		288,555
Clearwater Paper Corp. *		3,291		156,849
Cliffs Natural Resources, Inc. (a)		17,552		366,310
Coeur Mining, Inc. *		10,243		147,909
Commercial Metals Co.		14,261		212,204
Compass Minerals International, Inc.		4,388		323,527
Crown Holdings, Inc. *		17,846		775,587
Cytec Industries, Inc.		5,485		410,168
Deltic Timber Corp.		1,325		79,699
Domtar Corp.		4,388		289,608
E.I. du Pont de Nemours & Co.		112,991		6,397,550
Eagle Materials, Inc.		6,067		389,259
Eastman Chemical Co.		18,649		1,417,324
Ecolab, Inc.		31,813		2,906,118
Ferro Corp. *		17,960		132,006
Flotek Industries, Inc. *		4,900		96,971
FMC Corp.		16,502		1,099,198
Freeport-McMoRan Copper & Gold, Inc.		125,409		3,789,860
Globe Specialty Metals, Inc.		5,948		76,432
Graphic Packaging Holding Co. *		25,973		215,836
Greif, Inc., Class A		4,388		236,382
H.B. Fuller Co.		5,727		213,560
Haynes International, Inc.		2,194		97,041
Headwaters, Inc. *		17,960		153,738
Hecla Mining Co.		30,243		103,431
Horsehead Holding Corp. *		5,012		59,492
Huntsman Corp.		21,940		383,950
Innophos Holdings, Inc.		3,291		161,160
International Flavors & Fragrances, Inc.		9,873		780,066
International Paper Co.		53,776		2,538,765
Kaiser Aluminum Corp.		2,194		151,649
KapStone Paper and Packaging Corp.		5,505		231,210
Koppers Holdings, Inc.		3,291		127,592
Kraton Performance Polymers, Inc. *		3,589		66,576
Kronos Worldwide, Inc. (a)		5,620		83,232
Louisiana-Pacific Corp. *		16,455		246,167
LSB Industries, Inc. *		2,196		65,924
LyondellBasell Industries N.V., Class A		45,699		3,205,785
Martin Marietta Materials, Inc.		5,485		526,834
Materion Corp.		2,300		67,620
MeadWestvaco Corp.		20,843		747,222
Minerals Technologies, Inc.		4,416		196,070
Molycorp, Inc. *(a)		16,970		103,517
Monsanto Co.		64,723		6,335,735
Myers Industries, Inc.		4,388		81,441
Neenah Paper, Inc.		1,550		56,730
NewMarket Corp.		1,223		335,322
Newmont Mining Corp.		60,412		1,919,289
Nucor Corp.		37,804		1,719,704
Olin Corp.		10,970		253,407
OM Group, Inc. *		3,291		93,530
Owens-Illinois, Inc. *		20,843		591,733
P.H. Glatfelter Co.		4,832		123,796
Packaging Corp. of America		12,067		640,034
PolyOne Corp.		10,970		296,409
PPG Industries, Inc.		17,127		2,675,409
Praxair, Inc.		36,201		4,249,997
Quaker Chemical Corp.		2,194		145,594
Reliance Steel & Aluminum Co.		8,823		588,406
Resolute Forest Products *		11,576		145,973
Rock-Tenn Co., Class A		8,917		990,768
Rockwood Holdings, Inc.		9,076		579,593
Royal Gold, Inc.		7,694		446,483
RPM International, Inc.		16,455		559,141
RTI International Metals, Inc. *		3,449		106,816
Schweitzer-Mauduit International, Inc.		4,388		251,301
Sealed Air Corp.		23,306		661,890
Sensient Technologies Corp.		6,582		272,890
Sigma-Aldrich Corp.		14,414		1,188,723

See financial notes 31

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number			Value
Security	of Shares			($)
Silgan Holdings, Inc.		5,586			263,548
Sonoco Products Co.		12,067			449,254
Steel Dynamics, Inc.		26,328			401,765
Stepan Co.		2,194			123,829
Stillwater Mining Co. *		13,546			154,289
SunCoke Energy, Inc. *		7,088			111,494
Texas Industries, Inc. *		2,388			140,176
The Dow Chemical Co.		145,358			5,436,389
The Mosaic Co.		33,163			1,381,239
The Scotts Miracle-Gro Co., Class A		5,485			289,114
The Sherwin-Williams Co.		10,420			1,796,408
The Valspar Corp.		10,970			681,895
Tredegar Corp.		2,706			60,479
Tronox Ltd., Class A		10,062			214,924
United States Steel Corp. (a)		17,385			311,192
Valhi, Inc.		7,695			151,745
Vulcan Materials Co.		15,464			739,179
W.R. Grace & Co. *		8,679			697,358
Walter Energy, Inc. (a)		7,863			101,747
Wausau Paper Corp.		1,703			18,682
Westlake Chemical Corp.		2,341			236,862
Worthington Industries, Inc.		7,711	��		257,008

					82,296,864

Media 3.6%
AMC Networks, Inc., Class A *		7,679			475,944
Arbitron, Inc.		3,291			154,874
Belo Corp., Class A		12,067			170,627
Cablevision Systems Corp., Class A		25,895			459,118
CBS Corp., Class B Non Voting Shares		68,944			3,523,038
Charter Communications, Inc., Class A *		7,971			967,839
Cinemark Holdings, Inc.		13,164			387,943
Clear Channel Outdoor Holdings, Inc., Class A *		19,043			143,965
Comcast Corp., Class A		317,560			13,366,100
DIRECTV *		67,370			3,919,587
Discovery Communications, Inc., class A *		29,713			2,303,055
DISH Network Corp., Class A		24,795			1,114,783
DreamWorks Animation SKG, Inc., Class A *		8,324			235,569
Gannett Co., Inc.		30,716			739,948
John Wiley & Sons, Inc., Class A		5,885			257,763
Lamar Advertising Co., Class A *		7,679			323,056
Liberty Global plc, Class A *		43,118			3,349,406
Liberty Media Corp. *		13,311			1,816,685
Live Nation Entertainment, Inc. *		16,546			278,966
Loral Space & Communications, Inc.		2,194			145,045
Meredith Corp.		5,485			235,910
Morningstar, Inc.		3,291			247,121
National CineMedia, Inc.		7,707			138,572
News Corp., Class A *		59,958			941,341
Nexstar Broadcasting Group, Inc., Class A		3,054			102,523
Omnicom Group, Inc.		31,907			1,935,160
Regal Entertainment Group, Class A (a)		9,873			176,628
Scholastic Corp.		2,596			76,608
Scripps Networks Interactive, Inc., Class A		10,970			806,624
Sinclair Broadcast Group, Inc., Class A		5,850			139,932
Sirius XM Radio, Inc.		396,288			1,418,711
Starz, Class A *		13,311			332,243
The Interpublic Group of Cos., Inc.		52,691			828,302
The Madison Square Garden Co., Class A *		7,035			409,437
The New York Times Co., Class A *		19,746			220,168
The Walt Disney Co.		218,774			13,308,022
The Washington Post Co., Class B		412			232,368
Time Warner Cable, Inc.		35,136			3,771,850
Time Warner, Inc.		112,360			6,801,151
Twenty-First Century Fox, Inc.		239,972			7,518,323
Valassis Communications, Inc.		5,485			151,112
Viacom, Inc., Class B		53,876			4,286,375

					78,211,792

Pharmaceuticals, Biotechnology & Life Sciences 8.0%
AbbVie, Inc.		190,905			8,134,462
ACADIA Pharmaceuticals, Inc. *		11,720			233,931
Achillion Pharmaceuticals, Inc. *		8,056			51,961
Acorda Therapeutics, Inc. *		4,629			156,414
Actavis, Inc. *		15,372			2,077,987
Aegerion Pharmaceuticals, Inc. *		2,948			255,533
Agilent Technologies, Inc.		41,686			1,944,235
Akorn, Inc. *		7,770			139,627
Alexion Pharmaceuticals, Inc. *		23,737			2,557,899
Alkermes plc *		17,620			559,435
Allergan, Inc.		37,298			3,296,397
Alnylam Pharmaceuticals, Inc. *		7,048			365,086
Amgen, Inc.		90,572			9,866,914
Arena Pharmaceuticals, Inc. *(a)		23,343			149,629
ARIAD Pharmaceuticals, Inc. *		21,940			408,084
Array BioPharma, Inc. *		11,000			61,710
Auxilium Pharmaceuticals, Inc. *		5,485			95,713
AVANIR Pharmaceuticals, Inc., Class A *		30,243			154,239
Bio-Rad Laboratories, Inc., Class A *		2,194			250,138
Biogen Idec, Inc. *		28,595			6,091,307
BioMarin Pharmaceutical, Inc. *		17,188			1,125,298
Bristol-Myers Squibb Co.		199,117			8,301,188
Bruker Corp. *		9,873			197,855
Celgene Corp. *		50,231			7,031,335
Celldex Therapeutics, Inc. *		9,460			205,471
Cepheid, Inc. *		8,776			314,005
Charles River Laboratories International, Inc. *		5,779			266,123
Clovis Oncology, Inc. *		3,449			222,461
Covance, Inc. *		7,679			622,306
Cubist Pharmaceuticals, Inc. *		7,679			486,541
Eli Lilly & Co.		119,593			6,147,080
Emergent Biosolutions, Inc. *		5,580			98,096
Endo Health Solutions, Inc. *		14,261			585,984
Exact Sciences Corp. *		6,798			78,653

32 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Exelixis, Inc. *(a)		17,593		88,141
Forest Laboratories, Inc. *		27,866		1,185,141
Genomic Health, Inc. *		2,592		81,700
Gilead Sciences, Inc. *		184,342		11,110,292
Halozyme Therapeutics, Inc. *		10,970		91,161
Hospira, Inc. *		19,746		770,686
Idenix Pharmaceuticals, Inc. *(a)		14,512		69,367
Illumina, Inc. *		15,358		1,195,467
ImmunoGen, Inc. *		9,873		157,968
Impax Laboratories, Inc. *		9,877		201,293
Incyte Corp. *		15,526		526,176
Infinity Pharmaceuticals, Inc. *		8,063		149,246
Intercept Pharmaceuticals, Inc. *		2,248		102,824
InterMune, Inc. *		9,584		136,955
Ironwood Pharmaceuticals, Inc. *		11,126		129,618
Isis Pharmaceuticals, Inc. *		14,356		370,815
Jazz Pharmaceuticals plc *		6,320		554,201
Johnson & Johnson		339,594		29,344,318
Lexicon Pharmaceuticals, Inc. *		52,819		131,519
Life Technologies Corp. *		21,940		1,632,555
Ligand Pharmaceuticals, Inc., Class B *		3,122		150,137
Luminex Corp. *		5,485		111,346
Mallinckrodt plc *		7,224		315,328
MannKind Corp. *(a)		43,297		250,690
Medivation, Inc. *		8,776		496,107
Merck & Co., Inc.		366,430		17,328,475
Merrimack Pharmaceuticals, Inc. *(a)		10,247		34,635
Mettler-Toledo International, Inc. *		3,538		779,174
Momenta Pharmaceuticals, Inc. *		5,771		81,313
Mylan, Inc. *		50,462		1,783,327
Myriad Genetics, Inc. *		10,970		287,085
Nektar Therapeutics *		16,455		200,422
Neurocrine Biosciences, Inc. *		8,864		129,148
NPS Pharmaceuticals, Inc. *		13,279		333,303
Onyx Pharmaceuticals, Inc. *		9,030		1,115,927
Opko Health, Inc. *(a)		19,746		182,453
Optimer Pharmaceuticals, Inc. *		6,809		85,181
Pacira Pharmaceuticals, Inc. *		3,350		121,337
PAREXEL International Corp. *		7,679		356,536
PDL BioPharma, Inc. (a)		21,940		174,204
PerkinElmer, Inc.		15,358		552,427
Perrigo Co.		10,887		1,323,315
Pfizer, Inc.		805,537		22,724,199
Pharmacyclics, Inc. *		6,582		733,893
Puma Biotechnology, Inc. *		3,772		191,014
Questcor Pharmaceuticals, Inc.		7,679		512,036
Quintiles Transnational Holdings, Inc. *		3,014		130,386
Regeneron Pharmaceuticals, Inc. *		9,349		2,265,356
Salix Pharmaceuticals Ltd. *		6,582		440,599
Santarus, Inc. *		6,844		154,127
Sarepta Therapeutics, Inc. *(a)		3,291		112,322
Seattle Genetics, Inc. *		12,108		513,379
Sequenom, Inc. *(a)		16,036		46,825
Synageva BioPharma Corp. *		4,646		217,944
Techne Corp.		4,388		340,114
The Medicines Co. *		6,624		209,385
Theravance, Inc. *		8,901		319,101
Thermo Fisher Scientific, Inc.		43,329		3,848,915
United Therapeutics Corp. *		6,582		466,730
Vertex Pharmaceuticals, Inc. *		27,853		2,093,153
ViroPharma, Inc. *		8,832		266,285
VIVUS, Inc. *(a)		10,970		137,454
Warner Chilcott plc, Class A		22,346		479,322
Waters Corp. *		10,970		1,084,385
Zoetis, Inc.		59,627		1,738,127

				175,779,461

Real Estate 3.4%
Acadia Realty Trust		5,538		129,202
AG Mortgage Investment Trust, Inc.		2,400		42,144
Alexander & Baldwin, Inc. *		5,485		197,295
Alexander’s, Inc.		699		191,477
Alexandria Real Estate Equities, Inc.		9,240		569,831
Altisource Portfolio Solutions S.A. *		2,522		328,869
American Assets Trust, Inc.		3,751		111,067
American Campus Communities, Inc.		12,349		411,345
American Capital Agency Corp.		46,914		1,067,763
American Capital Mortgage Investment Corp.		7,829		156,893
American Homes 4 Rent, Class A *		8,063		128,040
American Tower Corp.		48,268		3,354,143
Annaly Capital Management, Inc.		119,573		1,395,417
Anworth Mortgage Asset Corp.		24,134		106,914
Apartment Investment & Management Co., Class A		17,558		483,372
Apollo Residential Mortgage, Inc.		2,600		39,546
ARMOUR Residential REIT, Inc.		45,731		191,156
Ashford Hospitality Trust Inc.		8,776		101,187
Associated Estates Realty Corp.		4,993		68,754
AvalonBay Communities, Inc.		14,720		1,823,808
Aviv REIT, Inc. (a)		5,915		134,389
BioMed Realty Trust, Inc.		22,659		417,152
Boston Properties, Inc.		18,649		1,911,522
Brandywine Realty Trust		18,649		239,080
BRE Properties, Inc.		9,076		435,557
Camden Property Trust		9,873		610,053
Campus Crest Communities, Inc.		11,850		125,373
CapLease, Inc.		21,159		180,063
Capstead Mortgage Corp.		13,164		154,545
CBL & Associates Properties, Inc.		20,843		400,186
CBRE Group, Inc., Class A *		36,418		796,462
Chesapeake Lodging Trust		8,535		187,855
Chimera Investment Corp.		118,566		348,584
Colonial Properties Trust		10,970		242,327
Colony Financial, Inc.		7,941		156,994
CommonWealth REIT		14,980		367,759
Coresite Realty Corp.		2,194		66,763
Corporate Office Properties Trust		9,312		212,127
Corrections Corp. of America		14,649		482,538
Cousins Properties, Inc.		20,352		202,095
CubeSmart		13,164		219,181
CYS Investments, Inc.		19,905		152,870
DCT Industrial Trust, Inc.		37,298		249,524
DDR Corp.		29,619		459,687
DiamondRock Hospitality Co.		23,075		223,597

See financial notes 33

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Digital Realty Trust, Inc. (a)		15,358		853,905
Douglas Emmett, Inc.		15,358		354,770
Duke Realty Corp.		37,517		547,373
DuPont Fabros Technology, Inc.		7,679		175,004
EastGroup Properties, Inc.		4,388		246,606
Education Realty Trust, Inc.		13,164		113,079
EPR Properties		5,079		248,769
Equity Lifestyle Properties, Inc.		10,970		381,208
Equity One, Inc.		7,038		149,628
Equity Residential		38,703		2,008,299
Essex Property Trust, Inc.		4,388		628,844
Excel Trust, Inc.		11,850		138,171
Extra Space Storage, Inc.		12,067		497,522
Federal Realty Investment Trust		7,679		747,243
FelCor Lodging Trust, Inc. *		15,358		84,623
First Industrial Realty Trust, Inc.		10,970		165,976
First Potomac Realty Trust		5,815		72,339
Forest City Enterprises, Inc., Class A *		15,646		280,063
Forestar Group, Inc. *		3,750		74,850
Franklin Street Properties Corp.		9,873		120,253
General Growth Properties, Inc.		53,971		1,035,164
Getty Realty Corp.		2,800		51,128
Glimcher Realty Trust		16,455		162,905
Government Properties Income Trust		5,494		128,450
Hatteras Financial Corp.		11,570		211,731
HCP, Inc.		54,218		2,208,299
Health Care REIT, Inc.		34,337		2,109,665
Healthcare Realty Trust, Inc.		10,179		228,926
Healthcare Trust of America, Inc.		21,656		223,057
Hersha Hospitality Trust		17,830		93,429
Highwoods Properties, Inc.		12,303		415,595
Home Properties, Inc.		6,582		379,781
Hospitality Properties Trust		15,358		414,973
Host Hotels & Resorts, Inc.		89,937		1,531,627
Hudson Pacific Properties, Inc.		11,324		225,914
Inland Real Estate Corp.		9,064		88,918
Invesco Mortgage Capital, Inc.		13,664		209,196
Investors Real Estate Trust		10,147		82,698
iStar Financial, Inc. *		8,800		97,504
Jones Lang LaSalle, Inc.		5,485		451,086
Kennedy-Wilson Holdings, Inc.		5,485		101,143
Kilroy Realty Corp.		8,776		428,181
Kimco Realty Corp.		49,365		988,781
LaSalle Hotel Properties		9,873		261,931
Lexington Realty Trust		21,954		257,301
Liberty Property Trust		17,800		615,880
LTC Properties, Inc.		3,485		123,474
Mack-Cali Realty Corp.		10,193		220,169
Medical Properties Trust, Inc.		15,964		184,384
MFA Financial, Inc.		42,783		308,038
Mid-America Apartment Communities, Inc.		4,688		289,062
National Health Investors, Inc.		2,535		139,172
National Retail Properties, Inc.		14,930		457,306
NorthStar Realty Finance Corp.		23,952		209,820
OMEGA Healthcare Investors, Inc.		13,164		373,858
Parkway Properties, Inc.		5,520		90,252
Pebblebrook Hotel Trust		6,936		177,562
Pennsylvania REIT		7,679		142,445
Pennymac Mortgage Investment Trust		6,880		144,824
Piedmont Office Realty Trust, Inc., Class A		21,940		376,929
Plum Creek Timber Co., Inc.		19,746		874,945
Post Properties, Inc.		6,582		297,704
Potlatch Corp.		5,485		211,502
Prologis, Inc.		60,509		2,132,337
PS Business Parks, Inc.		1,691		122,885
Public Storage		17,552		2,679,664
Ramco-Gershenson Properties Trust		5,485		79,423
Rayonier, Inc.		15,358		848,376
Realogy Holdings Corp. *		18,439		780,523
Realty Income Corp.		24,424		964,748
Redwood Trust, Inc. (a)		12,067		214,672
Regency Centers Corp.		10,970		521,624
Resource Capital Corp.		10,250		59,655
Retail Opportunity Investments Corp.		5,815		75,246
Retail Properties of America, Inc., Class A		15,223		203,075
RLJ Lodging Trust		14,550		334,359
Rouse Properties, Inc. (a)		4,596		85,210
Ryman Hospitality Properties, Inc.		6,234		205,971
Sabra Health Care REIT, Inc.		4,432		97,992
Saul Centers, Inc.		1,452		63,031
Select Income REIT		2,674		65,058
Senior Housing Properties Trust		24,561		558,763
Silver Bay Realty Trust Corp.		1,524		24,033
Simon Property Group, Inc.		37,898		5,519,086
SL Green Realty Corp.		10,970		956,474
Sovran Self Storage, Inc.		3,299		218,625
Spirit Realty Capital, Inc.		49,645		432,408
STAG Industrial, Inc.		3,650		73,000
Starwood Property Trust, Inc.		20,665		515,178
Strategic Hotels & Resorts, Inc. *		21,940		177,933
Summit Hotel Properties, Inc.		11,850		113,049
Sun Communities, Inc.		3,303		141,930
Sunstone Hotel Investors, Inc. *		16,465		198,074
Tanger Factory Outlet Centers		11,175		344,749
Taubman Centers, Inc.		7,679		517,641
The Geo Group, Inc.		9,945		310,383
The Howard Hughes Corp. *		3,291		336,340
The Macerich Co.		16,455		926,087
The St. Joe Co. *		12,067		233,014
Two Harbors Investment Corp.		42,270		401,988
UDR, Inc.		29,972		677,067
Universal Health Realty Income Trust		2,194		88,001
Ventas, Inc.		35,404		2,204,253
Vornado Realty Trust		20,140		1,637,382
Washington REIT		7,679		187,060
Weingarten Realty Investors		15,358		440,928
Weyerhaeuser Co.		69,684		1,907,948
WP Carey, Inc.		6,626		435,527

				74,498,510

Retailing 4.5%
Aaron’s, Inc.		9,873		267,262
Abercrombie & Fitch Co., Class A		9,873		348,616

34 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Advance Auto Parts, Inc.		8,790		703,815
Aeropostale, Inc. *		9,873		80,267
Amazon.com, Inc. *		43,888		12,331,650
American Eagle Outfitters, Inc.		21,940		317,472
Ann, Inc. *		6,699		232,455
Asbury Automotive Group, Inc. *		3,617		177,703
Ascena Retail Group, Inc. *		17,552		286,449
AutoNation, Inc. *		4,588		214,443
AutoZone, Inc. *		4,541		1,906,948
Barnes & Noble, Inc. *		4,953		67,708
Bed Bath & Beyond, Inc. *		26,400		1,946,736
Best Buy Co., Inc.		32,159		1,157,724
Big Lots, Inc. *		7,807		276,524
Blue Nile, Inc. *		1,350		48,843
Brown Shoe Co., Inc.		6,594		147,837
Cabela’s, Inc. *		5,767		377,912
CarMax, Inc. *		27,425		1,304,333
Chico’s FAS, Inc.		21,940		342,264
Conn’s, Inc. *		2,400		159,864
Core-Mark Holding Co., Inc.		1,097		69,221
CST Brands, Inc. *		7,415		218,742
Dick’s Sporting Goods, Inc.		11,370		527,682
Dillard’s, Inc., Class A		4,388		334,629
Dollar General Corp. *		36,527		1,971,362
Dollar Tree, Inc. *		28,582		1,506,271
DSW, Inc., Class A		3,572		307,513
Expedia, Inc.		11,185		523,011
Express, Inc. *		10,365		217,561
Family Dollar Stores, Inc.		11,448		814,983
Five Below, Inc. *		4,564		167,727
Foot Locker, Inc.		19,746		635,821
Francesca’s Holdings Corp. *		3,750		90,450
Fred’s, Inc., Class A		3,750		58,613
GameStop Corp., Class A		14,649		735,526
Genesco, Inc. *		3,291		202,989
Genuine Parts Co.		18,649		1,436,159
GNC Holdings, Inc., Class A		9,873		502,240
Group 1 Automotive, Inc.		3,291		252,518
Groupon, Inc. *		33,813		343,540
Guess?, Inc.		7,033		214,506
Hibbett Sports, Inc. *		2,788		144,418
HomeAway, Inc. *		3,434		108,308
HSN, Inc.		4,482		241,401
J.C. Penney Co., Inc. *(a)		16,896		210,862
Jos. A. Bank Clothiers, Inc. *		4,388		174,555
Kohl’s Corp.		25,689		1,318,103
L Brands, Inc.		28,716		1,647,150
Liberty Interactive Corp., Class A *		62,055		1,401,202
Liberty Ventures, Series A *		4,474		383,153
Lithia Motors, Inc., Class A		2,194		143,970
LKQ Corp. *		35,504		1,038,137
Lowe’s Cos., Inc.		129,313		5,925,122
Lumber Liquidators Holdings, Inc. *		2,866		284,938
Macy’s, Inc.		48,409		2,150,812
Monro Muffler Brake, Inc.		3,501		154,989
Netflix, Inc. *		6,582		1,868,696
Nordstrom, Inc.		18,093		1,008,323
O’Reilly Automotive, Inc. *		14,349		1,760,766
Office Depot, Inc. *		33,500		140,365
OfficeMax, Inc.		10,150		110,330
Penske Automotive Group, Inc.		4,742		185,080
PetSmart, Inc.		13,307		937,212
Pier 1 Imports, Inc.		13,164		288,555
Pool Corp.		6,582		342,856
Priceline.com, Inc. *		6,209		5,827,333
Rent-A-Center, Inc.		6,847		256,831
Restoration Hardware Holdings, Inc. *		3,451		239,948
Ross Stores, Inc.		27,633		1,858,596
rue21, Inc. *		1,550		63,318
Saks, Inc. *		12,249		195,127
Sally Beauty Holdings, Inc. *		18,649		487,298
Sears Holdings Corp. *(a)		3,932		173,952
Select Comfort Corp. *		7,679		189,671
Shutterfly, Inc. *		4,404		228,832
Signet Jewelers Ltd.		9,873		655,567
Sonic Automotive, Inc., Class A		5,495		119,736
Stage Stores, Inc.		4,388		81,748
Staples, Inc.		82,275		1,144,445
Target Corp.		78,433		4,965,593
The Buckle, Inc. (a)		3,291		170,408
The Cato Corp., Class A		3,310		83,280
The Children’s Place Retail Stores, Inc. *		2,588		137,630
The Finish Line, Inc., Class A		5,929		124,272
The Gap, Inc.		35,624		1,440,635
The Home Depot, Inc.		176,151		13,121,488
The Men’s Wearhouse, Inc.		6,582		247,812
Tiffany & Co.		14,308		1,103,290
Tile Shop Holdings, Inc. *		6,235		165,664
TJX Cos., Inc.		88,006		4,639,676
Tractor Supply Co.		8,776		1,073,919
TripAdvisor, Inc. *		13,238		979,215
Ulta Salon, Cosmetics & Fragrance, Inc. *		7,679		762,064
Urban Outfitters, Inc. *		13,506		566,307
Vitamin Shoppe, Inc. *		4,388		184,823
Williams-Sonoma, Inc.		10,267		579,161

				97,664,831

Semiconductors & Semiconductor Equipment 2.1%
Advanced Energy Industries, Inc. *		3,850		70,186
Advanced Micro Devices, Inc. *(a)		72,612		237,441
Altera Corp.		39,492		1,388,934
Analog Devices, Inc.		36,201		1,675,382
Applied Materials, Inc.		149,225		2,239,867
Atmel Corp. *		54,850		398,211
ATMI, Inc. *		4,388		107,725
Avago Technologies Ltd.		25,803		993,674
Broadcom Corp., Class A		61,744		1,559,653
Brooks Automation, Inc.		8,776		77,229
Cabot Microelectronics Corp. *		3,291		118,871
Cavium, Inc. *		5,671		215,328
Cirrus Logic, Inc. *		8,877		199,732
Cree, Inc. *		15,368		852,770
Cypress Semiconductor Corp. *		17,435		197,364
Diodes, Inc. *		4,388		109,261
Entegris, Inc. *		16,455		154,677
Entropic Communications, Inc. *		10,250		42,845
Fairchild Semiconductor International, Inc. *		14,855		181,380
First Solar, Inc. *		8,643		317,371

See financial notes 35

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Freescale Semiconductor Ltd. *		7,366		105,481
Hittite Microwave Corp. *		2,788		170,514
Integrated Device Technology, Inc. *		17,019		148,235
Intel Corp.		604,447		13,285,745
International Rectifier Corp. *		8,776		209,571
Intersil Corp., Class A		25,621		265,690
KLA-Tencor Corp.		20,843		1,149,491
Kulicke & Soffa Industries, Inc. *		9,873		109,195
Lam Research Corp. *		21,959		1,024,827
Lattice Semiconductor Corp. *		13,888		66,107
Linear Technology Corp.		27,578		1,057,065
LSI Corp. *		67,187		497,856
Marvell Technology Group Ltd.		63,626		770,511
Maxim Integrated Products, Inc.		35,198		980,088
Micrel, Inc.		5,650		51,980
Microchip Technology, Inc.		23,037		894,066
Micron Technology, Inc. *		122,270		1,659,204
Microsemi Corp. *		12,067		310,605
MKS Instruments, Inc.		6,582		164,879
Monolithic Power Systems, Inc.		3,749		114,794
NVIDIA Corp.		74,071		1,092,547
OmniVision Technologies, Inc. *		6,822		105,400
ON Semiconductor Corp. *		52,656		381,229
PMC-Sierra, Inc. *		26,328		164,023
Power Integrations, Inc.		3,319		172,986
Rambus, Inc. *		13,164		107,418
RF Micro Devices, Inc. *		42,783		212,204
Semtech Corp. *		8,776		260,823
Silicon Image, Inc. *		11,100		60,162
Silicon Laboratories, Inc. *		5,485		212,215
Skyworks Solutions, Inc. *		23,037		584,218
Spansion, Inc., Class A *		5,650		58,591
SunEdison, Inc. *		29,673		218,393
SunPower Corp. *(a)		9,173		197,128
Teradyne, Inc. *		21,940		336,779
Tessera Technologies, Inc.		6,582		120,714
Texas Instruments, Inc.		137,219		5,241,766
TriQuint Semiconductor, Inc. *		19,746		148,885
Ultratech, Inc. *		4,388		124,093
Veeco Instruments, Inc. *		4,535		159,269
Xilinx, Inc.		31,140		1,352,099

				45,484,747

Software & Services 9.3%
Accelrys, Inc. *		6,800		61,472
Accenture plc, Class A		78,116		5,643,881
ACI Worldwide, Inc. *		4,578		222,811
Activision Blizzard, Inc.		50,462		823,540
Acxiom Corp. *		10,970		272,934
Adobe Systems, Inc. *		61,376		2,807,952
Advent Software, Inc.		4,388		118,432
Akamai Technologies, Inc. *		21,940		1,008,801
Alliance Data Systems Corp. *		5,832		1,141,322
Amdocs Ltd.		19,237		709,076
Angie’s List, Inc. *(a)		5,244		109,914
ANSYS, Inc. *		11,117		933,606
AOL, Inc. *		12,125		399,276
Aspen Technology, Inc. *		11,123		371,842
Autodesk, Inc. *		27,425		1,007,869
Automatic Data Processing, Inc.		58,335		4,151,119
Blackbaud, Inc.		7,679		276,598
Blucora, Inc. *		4,600		92,092
BMC Software, Inc. *		17,908		823,768
Booz Allen Hamilton Holding Corp.		6,242		126,276
Bottomline Technologies (de), Inc. *		5,485		149,302
Broadridge Financial Solutions, Inc.		15,379		457,679
BroadSoft, Inc. *		3,291		105,937
CA, Inc.		41,042		1,200,478
CACI International, Inc., Class A *		3,291		221,813
Cadence Design Systems, Inc. *		37,017		498,619
Cardtronics, Inc. *		5,485		190,275
Cass Information Systems, Inc.		1,337		70,166
Citrix Systems, Inc. *		23,037		1,630,328
Cognizant Technology Solutions Corp., Class A *		37,149		2,723,022
CommVault Systems, Inc. *		5,485		459,808
Computer Sciences Corp.		18,649		935,247
Compuware Corp.		28,522		304,330
comScore, Inc. *		3,972		113,162
Comverse, Inc. *		2,465		74,566
Concur Technologies, Inc. *		5,485		535,994
Convergys Corp.		15,358		270,762
CoreLogic, Inc. *		12,508		321,456
Cornerstone OnDemand, Inc. *		3,729		192,081
CoStar Group, Inc. *		3,291		488,746
CSG Systems International, Inc.		4,388		103,294
Dealertrack Technologies, Inc. *		5,388		213,311
Demand Media, Inc. *		4,900		31,752
Demandware, Inc. *		1,550		65,224
Dice Holdings, Inc. *		6,600		54,978
Digital River, Inc. *		4,993		86,279
DST Systems, Inc.		4,388		313,172
EarthLink, Inc.		12,543		61,712
eBay, Inc. *		141,586		7,077,884
Ebix, Inc. (a)		3,291		37,419
Electronic Arts, Inc. *		39,492		1,052,067
Ellie Mae, Inc. *		1,650		47,916
EPAM Systems, Inc. *		2,700		86,346
EPIQ Systems, Inc.		3,850		47,163
Equinix, Inc. *		6,164		1,070,933
Euronet Worldwide, Inc. *		6,582		226,092
Exlservice Holdings, Inc. *		3,291		89,219
Facebook, Inc., Class A *		66,336		2,738,350
FactSet Research Systems, Inc. (a)		5,485		561,390
Fair Isaac Corp.		3,747		187,650
Fidelity National Information Services, Inc.		36,641		1,629,059
Fiserv, Inc. *		16,469		1,585,471
FleetCor Technologies, Inc. *		8,019		826,839
Forrester Research, Inc.		1,550		51,119
Fortinet, Inc. *		15,436		305,633
Gartner, Inc. *		10,970		635,931
Genpact Ltd.		15,811		304,362
Global Cash Access Holdings, Inc. *		7,750		59,675
Global Payments, Inc.		9,318		444,003
Google, Inc., Class A *		32,466		27,495,455
Guidewire Software, Inc. *		3,699		170,006

36 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Heartland Payment Systems, Inc.		3,890		143,735
IAC/InterActiveCorp		9,873		484,666
iGate Corp. *		4,839		112,991
Imperva, Inc. *		1,450		68,440
Infoblox, Inc. *		4,400		153,560
Informatica Corp. *		12,667		453,099
Interactive Intelligence Group, Inc. *		1,550		91,295
International Business Machines Corp.		125,997		22,965,473
Intuit, Inc.		33,210		2,109,831
j2 Global, Inc.		5,606		276,039
Jack Henry & Associates, Inc.		10,970		547,403
Jive Software, Inc. *		9,994		123,826
Lender Processing Services, Inc.		10,970		349,943
LinkedIn Corp., Class A *		8,379		2,011,295
Liquidity Services, Inc. *(a)		3,291		97,545
LogMeIn, Inc. *		2,648		78,884
Manhattan Associates, Inc. *		3,291		287,962
ManTech International Corp., Class A		5,630		160,173
Mastercard, Inc., Class A		12,740		7,721,459
MAXIMUS, Inc.		7,420		278,324
Mentor Graphics Corp.		11,882		263,305
MICROS Systems, Inc. *		9,873		482,790
Microsoft Corp.		909,261		30,369,317
MicroStrategy, Inc., Class A *		1,097		100,716
Monotype Imaging Holdings, Inc.		4,388		112,991
Monster Worldwide, Inc. *		16,515		74,318
Netscout Systems, Inc. *		3,803		94,467
NetSuite, Inc. *		3,338		331,897
NeuStar, Inc., Class A *		8,776		443,539
NIC, Inc.		6,582		146,515
Nuance Communications, Inc. *		29,161		556,683
OpenTable, Inc. *		2,694		200,811
Oracle Corp.		446,662		14,230,651
Pandora Media, Inc. *		11,236		206,967
Paychex, Inc.		39,492		1,527,551
Pegasystems, Inc.		2,316		85,345
Progress Software Corp. *		7,060		172,688
Proofpoint, Inc. *		3,550		102,275
PROS Holdings, Inc. *		2,700		88,560
PTC, Inc. *		14,488		377,702
QLIK Technologies, Inc. *		9,062		297,143
QuinStreet, Inc. *		6,600		57,486
Rackspace Hosting, Inc. *		13,164		590,010
RealPage, Inc. *		3,916		81,100
Red Hat, Inc. *		23,037		1,163,829
Responsys, Inc. *		5,000		71,750
Rovi Corp. *		13,502		242,091
SAIC, Inc.		34,215		515,620
Salesforce.com, Inc. *		65,142		3,200,426
Sapient Corp. *		12,635		188,893
ServiceNow, Inc. *		6,022		282,311
SolarWinds, Inc. *		7,159		260,946
Solera Holdings, Inc.		8,079		417,038
Sourcefire, Inc. *		3,791		286,069
Splunk, Inc. *		2,766		152,711
SS&C Technologies Holdings, Inc. *		7,334		259,550
Symantec Corp.		87,246		2,234,370
Synchronoss Technologies, Inc. *		4,388		150,859
Synopsys, Inc. *		17,805		645,609
Syntel, Inc.		1,507		108,308
Take-Two Interactive Software, Inc. *		10,970		201,409
Tangoe, Inc. *		3,650		75,884
TeleTech Holdings, Inc. *		4,458		109,087
Teradata Corp. *		20,843		1,220,566
The Western Union Co.		74,596		1,307,668
TIBCO Software, Inc. *		18,140		408,876
TiVo, Inc. *		16,455		192,030
Total System Services, Inc.		19,184		530,821
Tyler Technologies, Inc. *		4,388		324,229
Ultimate Software Group, Inc. *		3,291		461,431
Unisys Corp. *		5,485		138,003
United Online, Inc.		10,450		82,032
ValueClick, Inc. *		9,873		208,913
Vantiv, Inc., Class A *		14,103		372,460
VeriFone Systems, Inc. *		15,155		300,372
Verint Systems, Inc. *		6,156		204,071
VeriSign, Inc. *		19,746		947,611
VirnetX Holding Corp. *(a)		4,730		91,525
Virtusa Corp. *		2,800		73,696
Visa, Inc., Class A		61,280		10,688,458
VMware, Inc., Class A *		10,065		846,970
Web.com Group, Inc. *		4,388		123,829
WebMD Health Corp. *		5,897		185,284
WEX, Inc. *		4,535		362,936
Workday, Inc., Class A *		2,414		175,087
Yahoo! Inc. *		119,627		3,244,284
Yelp, Inc. *		7,247		376,699
Zillow, Inc., Class A *		1,507		145,350
Zynga, Inc., Class A *		55,070		155,848

				202,952,635

Technology Hardware & Equipment 6.2%
3D Systems Corp. *(a)		11,004		565,606
ADTRAN, Inc.		7,679		185,217
Amphenol Corp., Class A		19,746		1,496,154
Anixter International, Inc. *		3,338		278,923
Apple, Inc.		113,514		55,286,994
ARRIS Group, Inc. *		16,455		257,850
Arrow Electronics, Inc. *		12,708		589,905
Aruba Networks, Inc. *		12,067		200,674
Avnet, Inc. *		18,649		719,105
AVX Corp.		12,669		163,050
Badger Meter, Inc.		1,583		71,362
Belden, Inc.		6,582		373,331
Benchmark Electronics, Inc. *		6,770		148,737
Black Box Corp.		1,650		43,841
Brocade Communications Systems, Inc. *		55,215		408,591
CDW Corp. *		8,589		188,357
Ciena Corp. *		10,970		218,522
Cisco Systems, Inc.		645,838		15,054,484
Cognex Corp.		5,485		312,535
Coherent, Inc.		3,291		184,724
Comtech Telecommunications Corp.		2,336		55,994
Corning, Inc.		182,600		2,563,704
Daktronics, Inc.		5,750		61,468
Dell, Inc.		175,767		2,420,312

See financial notes 37

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Diebold, Inc.		7,679		217,162
Dolby Laboratories, Inc., Class A (a)		3,291		103,436
DTS, Inc. *		2,300		46,138
EchoStar Corp., Class A *		4,662		187,692
Electro Rent Corp.		2,800		47,600
Electronics for Imaging, Inc. *		5,485		160,601
EMC Corp.		254,175		6,552,631
F5 Networks, Inc. *		8,503		708,980
Fabrinet *		4,400		61,424
FARO Technologies, Inc. *		3,291		122,195
FEI Co.		4,459		349,051
Finisar Corp. *		10,970		224,556
FLIR Systems, Inc.		18,649		583,341
Harmonic, Inc. *		17,728		125,337
Harris Corp.		13,458		762,127
Hewlett-Packard Co.		237,040		5,295,474
Infinera Corp. *		21,940		203,384
Ingram Micro, Inc., Class A *		18,649		412,143
Insight Enterprises, Inc. *		5,485		104,818
InterDigital, Inc.		5,485		194,937
Intermec, Inc. *		8,150		80,440
InvenSense, Inc. *(a)		11,760		210,151
IPG Photonics Corp.		3,385		181,978
Itron, Inc. *		4,388		164,374
Ixia *		6,621		96,137
Jabil Circuit, Inc.		24,134		550,738
JDS Uniphase Corp. *		29,619		380,012
Juniper Networks, Inc. *		64,723		1,223,265
Lexmark International, Inc., Class A		5,537		189,144
Littelfuse, Inc.		2,194		161,851
Measurement Specialties, Inc. *		1,683		79,673
Methode Electronics, Inc.		5,000		119,450
Molex, Inc.		17,552		509,359
Motorola Solutions, Inc.		34,315		1,921,983
MTS Systems Corp.		1,528		91,940
National Instruments Corp.		12,067		334,859
NCR Corp. *		18,649		663,531
NetApp, Inc.		44,977		1,868,345
NETGEAR, Inc. *		4,388		126,989
Newport Corp. *		4,500		69,030
OSI Systems, Inc. *		2,241		162,921
Palo Alto Networks, Inc. *		3,782		181,612
Park Electrochemical Corp.		2,566		68,358
Plantronics, Inc.		6,582		284,342
Plexus Corp. *		3,833		125,492
Polycom, Inc. *		16,585		164,689
QLogic Corp. *		7,392		78,281
QUALCOMM, Inc.		207,950		13,782,926
Quantum Corp. *		34,250		49,320
RealD, Inc. *(a)		5,715		46,806
Riverbed Technology, Inc. *		15,462		238,733
Rofin-Sinar Technologies, Inc. *		3,484		78,355
Rogers Corp. *		1,583		87,809
SanDisk Corp.		29,619		1,634,376
Sanmina Corp. *		8,776		142,786
ScanSource, Inc. *		2,770		85,815
Seagate Technology plc		42,230		1,618,254
Sonus Networks, Inc. *		31,233		107,754
Super Micro Computer, Inc. *		4,432		56,907
Synaptics, Inc. *		4,388		169,640
SYNNEX Corp. *		2,650		125,901
TE Connectivity Ltd.		52,660		2,580,340
Tech Data Corp. *		5,485		269,643
Trimble Navigation Ltd. *		30,716		775,579
TTM Technologies, Inc. *		7,147		68,182
Ubiquiti Networks, Inc.		7,144		250,469
Universal Display Corp. *		2,964		102,584
ViaSat, Inc. *		5,485		349,559
Vishay Intertechnology, Inc. *		16,926		207,343
Western Digital Corp.		27,425		1,700,350
Xerox Corp.		157,441		1,571,261
Zebra Technologies Corp., Class A *		6,582		300,139

				134,802,242

Telecommunication Services 2.3%
AT&T, Inc.		650,183		21,995,691
Atlantic Tele-Network, Inc.		2,194		103,645
CenturyLink, Inc.		75,975		2,516,292
Cincinnati Bell, Inc. *		24,134		72,161
Cogent Communications Group, Inc.		5,485		170,200
Consolidated Communications Holdings, Inc.		3,291		54,894
Crown Castle International Corp. *		35,210		2,444,278
Frontier Communications Corp. (a)		119,573		517,751
General Communication, Inc., Class A *		7,768		69,524
Leap Wireless International, Inc. *		11,240		170,623
Level 3 Communications, Inc. *		19,746		441,521
NII Holdings, Inc. *(a)		19,746		118,081
NTELOS Holdings Corp.		3,449		57,322
Premiere Global Services, Inc. *		7,679		74,333
SBA Communications Corp., Class A *		14,961		1,122,075
Shenandoah Telecommunications Co.		6,698		114,871
Sprint Corp. *		103,738		696,082
T-Mobile US, Inc. *		18,940		442,249
Telephone & Data Systems, Inc.		14,261		394,887
tw telecom, Inc. *		18,649		533,734
United States Cellular Corp.		2,194		93,859
USA Mobility, Inc.		6,698		94,576
Verizon Communications, Inc.		346,156		16,400,871
Vonage Holdings Corp. *		42,837		133,651
Windstream Corp. (a)		71,305		575,431

				49,408,602

Transportation 1.9%
Alaska Air Group, Inc.		8,776		496,897
Allegiant Travel Co.		2,194		207,355
AMERCO		1,097		179,469
Atlas Air Worldwide Holdings, Inc. *		3,291		152,044
Avis Budget Group, Inc. *		15,323		410,197
C.H. Robinson Worldwide, Inc.		19,746		1,122,955
Con-way, Inc.		6,668		277,389
CSX Corp.		126,221		3,106,299
Delta Air Lines, Inc.		101,330		1,999,241

38 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Expeditors International of Washington, Inc.		25,231		1,023,369
FedEx Corp.		36,678		3,937,750
Forward Air Corp.		4,388		161,610
Genesee & Wyoming, Inc., Class A *		5,485		474,891
Heartland Express, Inc.		5,990		83,381
Hertz Global Holdings, Inc. *		50,881		1,222,670
Hub Group, Inc., Class A *		4,516		167,769
J.B. Hunt Transport Services, Inc.		10,467		753,624
JetBlue Airways Corp. *		34,007		209,143
Kansas City Southern		13,188		1,390,279
Kirby Corp. *		6,582		529,390
Knight Transportation, Inc.		5,485		89,296
Landstar System, Inc.		6,582		359,706
Matson, Inc.		5,485		146,066
Norfolk Southern Corp.		38,459		2,775,201
Old Dominion Freight Line, Inc. *		8,237		357,651
Roadrunner Transportation Systems, Inc. *		2,700		73,224
Ryder System, Inc.		6,582		366,025
Saia, Inc. *		5,204		156,172
SkyWest, Inc.		5,920		76,309
Southwest Airlines Co.		89,954		1,152,311
Spirit Airlines, Inc. *		10,586		329,966
Swift Transportation Co. *		9,909		177,966
Union Pacific Corp.		56,330		8,648,908
United Continental Holdings, Inc. *		39,814		1,133,106
United Parcel Service, Inc., Class B		86,810		7,429,200
US Airways Group, Inc. *		19,746		319,095
UTI Worldwide, Inc.		13,164		217,338
Werner Enterprises, Inc.		4,976		114,647
Wesco Aircraft Holdings, Inc. *		5,761		110,208

				41,938,117

Utilities 3.3%
AES Corp.		77,201		981,225
AGL Resources, Inc.		13,761		604,796
ALLETE, Inc.		5,485		258,892
Alliant Energy Corp.		13,164		653,066
Ameren Corp.		28,980		979,814
American Electric Power Co., Inc.		59,238		2,535,386
American States Water Co.		2,194		115,404
American Water Works Co., Inc.		20,846		849,266
Aqua America, Inc.		16,455		499,738
Atmos Energy Corp.		10,970		442,640
Avista Corp.		8,776		230,546
Black Hills Corp.		4,912		235,874
California Water Service Group		4,776		95,281
Calpine Corp. *		47,177		911,931
CenterPoint Energy, Inc.		51,021		1,169,912
Chesapeake Utilities Corp.		4,249		221,840
Cleco Corp.		6,982		315,307
CMS Energy Corp.		32,910		873,102
Connecticut Water Service, Inc.		2,448		74,566
Consolidated Edison, Inc.		35,104		1,973,898
Dominion Resources, Inc.		68,642		4,005,261
DTE Energy Co.		20,346		1,360,537
Duke Energy Corp.		84,745		5,559,272
Dynegy, Inc. *		9,456		183,730
Edison International		38,901		1,785,167
El Paso Electric Co.		5,485		188,684
Entergy Corp.		21,940		1,387,266
Exelon Corp.		103,118		3,144,068
FirstEnergy Corp.		50,462		1,890,811
Great Plains Energy, Inc.		18,058		395,831
Hawaiian Electric Industries, Inc.		10,970		274,360
IDACORP, Inc.		6,582		315,080
Integrys Energy Group, Inc.		9,176		513,122
ITC Holdings Corp.		6,582		585,074
MDU Resources Group, Inc.		22,446		599,308
MGE Energy, Inc.		2,522		131,421
National Fuel Gas Co.		9,959		650,124
New Jersey Resources Corp.		5,485		236,294
NextEra Energy, Inc.		50,762		4,079,234
NiSource, Inc.		36,941		1,080,894
Northeast Utilities		37,917		1,553,460
Northwest Natural Gas Co.		4,388		180,084
NorthWestern Corp.		4,388		176,266
NRG Energy, Inc.		38,748		1,017,135
NV Energy, Inc.		27,425		643,116
OGE Energy Corp.		22,940		807,717
ONEOK, Inc.		24,134		1,241,453
Ormat Technologies, Inc.		4,803		120,411
Otter Tail Corp.		3,647		95,843
Pepco Holdings, Inc.		31,008		587,292
PG&E Corp.		53,805		2,225,375
Piedmont Natural Gas Co., Inc.		8,279		267,081
Pinnacle West Capital Corp.		13,164		714,410
PNM Resources, Inc.		9,873		216,317
Portland General Electric Co.		8,776		252,837
PPL Corp.		76,790		2,357,453
Public Service Enterprise Group, Inc.		61,432		1,991,625
Questar Corp.		20,996		460,232
SCANA Corp.		17,604		847,105
Sempra Energy		27,425		2,315,219
SJW Corp.		5,253		137,366
South Jersey Industries, Inc.		4,388		253,451
Southwest Gas Corp.		5,485		256,588
TECO Energy, Inc.		23,037		380,802
The Empire District Electric Co.		4,744		100,430
The Laclede Group, Inc.		4,221		187,961
The Southern Co.		105,312		4,383,085
UGI Corp.		13,164		516,029
UIL Holdings Corp.		5,802		219,084
Unitil Corp.		3,751		105,553
UNS Energy Corp.		4,388		200,663
Vectren Corp.		9,873		321,860
Westar Energy, Inc.		14,747		458,779
WGL Holdings, Inc.		6,582		274,733
Wisconsin Energy Corp.		28,522		1,170,543
Xcel Energy, Inc.		58,327		1,628,490

				71,053,870

Total Common Stock
(Cost $1,846,144,107)				2,176,087,406

See financial notes 39

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Other Investment Companies 0.2% of net assets

Equity Fund 0.1%
iShares Russell 3000 ETF (a)		25,000		2,444,750

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund 0.00% (c)		1,140,502		1,140,502

Total Other Investment Companies
(Cost $3,570,939)				3,585,252



End of Investments



Collateral Invested for Securities on Loan 0.5% of net assets


State Street Institutional U.S. Government Money Market Fund 0.00% (c)		11,366,609		11,366,609

Total Collateral Invested for Securities on Loan
(Cost $11,366,609)				11,366,609



End of Collateral Invested for Securities on Loan

At 08/31/13, the tax basis cost of the fund’s investments was $1,850,027,269 and the unrealized appreciation and depreciation were $354,686,596 and ($25,041,207), respectively, with a net unrealized appreciation of $329,645,389.


*		Non-income producing security.
(a)		All or a portion of this security is on loan. Securities on loan were valued at $11,108,873.
(b)		Issuer is affiliated with the fund’s adviser.
(c)		The rate shown is the 7-day yield.


ETF —		Exchange Traded Fund
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, 2013 (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		$2,176,087,406		$—		$—		$2,176,087,406
Other Investment Companies¹		3,585,252		—		—		3,585,252

Total		$2,179,672,658		$—		$—		$2,179,672,658

Other Financial Instruments
Collateral Invested for Securities on Loan		$11,366,609		$—		$—		$11,366,609


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

2012

(Losses)

Purchases

Sales

out

2013

Rights

$—

$1,461

$4,273

$2,849

($8,583

)

$—

Total

$—

$1,461

$4,273

$2,849

($8,583

)

$—

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, 2013.

40 See financial notes

Schwab U.S. Broad Market ETF

Statement of

Assets and Liabilities

As of August 31, 2013



Assets

Investments in affiliated issuers, at value (cost $2,209,329)		$2,754,156
Investments in unaffiliated issuers, at value (cost $1,847,505,717) including securities on loan of $11,108,873	+	2,176,918,502

Total investments, at value (cost $1,849,715,046)		2,179,672,658
Collateral invested for securities on loan		11,366,609
Receivables:
Investments sold		338,170
Dividends		4,306,407
Income from securities on loan		28,060
Foreign tax reclaims	+	4,888

Total assets		2,195,716,792

Liabilities

Collateral held for securities on loan		11,366,609
Payables:
Investments bought		1,672,193
Investment adviser fees	+	7,145

Total liabilities		13,045,947

Net Assets

Total assets		2,195,716,792
Total liabilities	−	13,045,947

Net assets		$2,182,670,845

Net Assets by Source
Capital received from investors		1,852,975,170
Net investment income not yet distributed		6,683,670
Net realized capital losses		(6,945,607	)
Net unrealized capital gains		329,957,612

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$2,182,670,845

54,850,000

$39.79

See financial notes 41

Schwab U.S. Broad Market ETF

Statement of

Operations

For the period September 1, 2012 through August 31, 2013



Investment Income

Dividends received from affiliated issuer		$26,192
Dividends received from unaffiliated issuers (net of foreign withholding tax of $22,508)		35,434,851
Interest		416
Securities on loan	+	261,975

Total investment income		35,723,434

Expenses

Investment adviser fees		664,055

Total expenses	−	664,055

Net investment income		35,059,379

Realized and Unrealized Gains (Losses)

Net realized gains on affiliated issuer		36,297
Net realized losses on unaffiliated investments		(4,007,257	)
Net realized gains on in-kind redemptions	+	25,270,092

Net realized gains		21,299,132
Net unrealized gains on affiliated issuer		763,957
Net unrealized gains on unaffiliated investments	+	227,720,387

Net unrealized gains	+	228,484,344

Net realized and unrealized gains		249,783,476

Net increase in net assets resulting from operations		$284,842,855

42 See financial notes

Schwab U.S. Broad Market ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/12-8/31/13				9/1/11-8/31/12
Net investment income		$35,059,379			$18,738,862
Net realized gains		21,299,132			13,587,585
Net unrealized gains	+	228,484,344			107,871,937

Net increase in net assets resulting from operations		284,842,855			140,198,384

Distributions to Shareholders

Distributions from net investment income		($32,174,430	)		($16,859,390	)

Transactions in Fund Shares

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

25,500,000

$945,290,050

9,500,000

$299,666,505

Shares redeemed

(2,350,000

)

(88,113,025

)

(3,000,001

)

(92,831,011

)

Net transactions in fund shares

23,150,000

$857,177,025

6,499,999

$206,835,494

Shares Outstanding and Net Assets

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

31,700,000

$1,072,825,395

25,200,001

$742,650,907

Total increase

23,150,000

1,109,845,450

6,499,999

330,174,488

End of period

54,850,000

$2,182,670,845

31,700,000

$1,072,825,395

Net investment income not yet distributed

$6,683,670

$4,010,063

See financial notes 43

Schwab U.S. Large-Cap ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			9/1/10–			10/30/09¹–
	8/31/13			8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		33.49			29.11			24.98			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.77			0.64			0.53			0.34
Net realized and unrealized gains (losses)		5.56			4.35			4.13			(0.12	)

Total from investment operations		6.33			4.99			4.66			0.22
Less distributions:
Distributions from net investment income		(0.76	)		(0.61	)		(0.53	)		(0.24	)

Net asset value at end of period		39.06			33.49			29.11			24.98

Total return (%)		19.17			17.36			18.66			0.83	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.04			0.08			0.08			0.08	³
Gross operating expenses		0.04			0.08			0.08			0.08	³
Net investment income (loss)		2.18			2.10			1.88			2.01	³
Portfolio turnover rate⁴		5			4			5			3	²
Net assets, end of period ($ x 1,000)		1,781,282			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.

44 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings as of August 31, 2013

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		1,511,770,197		1,774,928,368
	0	.2%	Other Investment Companies		3,833,776		3,841,203


	99	.9%	Total Investments		1,515,603,973		1,778,769,571
	0	.2%	Collateral Invested for Securities on Loan		4,225,304		4,225,304
	(0	.1)%	Other Assets and Liabilities, Net				(1,713,082	)


	100	.0%	Net Assets				1,781,281,793


	Number			Value
Security	of Shares			($)

Common Stock 99.7% of net assets

Automobiles & Components 1.2%
Allison Transmission Holdings, Inc.		4,560			102,646
Autoliv, Inc.		10,445			845,836
BorgWarner, Inc.		13,083			1,263,556
Delphi Automotive plc		32,217			1,772,579
Ford Motor Co.		438,188			7,094,264
General Motors Co. *		84,380			2,875,670
Harley-Davidson, Inc.		24,675			1,480,006
Johnson Controls, Inc.		75,803			3,072,296
Lear Corp.		10,210			701,938
Tesla Motors, Inc. *(a)		8,341			1,409,629
TRW Automotive Holdings Corp. *		13,297			918,424

					21,536,844

Banks 2.9%
BB&T Corp.		77,078			2,617,569
BOK Financial Corp.		2,762			177,017
CIT Group, Inc. *		21,986			1,052,470
Comerica, Inc.		21,185			865,195
Cullen/Frost Bankers, Inc.		7,022			497,438
Fifth Third Bancorp		96,702			1,768,680
First Republic Bank		6,814			301,724
Hudson City Bancorp, Inc.		54,766			503,299
Huntington Bancshares, Inc.		94,852			781,580
KeyCorp		103,969			1,213,318
M&T Bank Corp.		13,211			1,497,335
New York Community Bancorp, Inc.		48,458			709,910
Ocwen Financial Corp. *		12,786			644,926
People’s United Financial, Inc.		37,498			533,221
Regions Financial Corp.		155,952	��		1,465,949
SunTrust Banks, Inc.		59,280			1,898,146
The PNC Financial Services Group, Inc.		58,239			4,208,932
U.S. Bancorp		204,375			7,384,069
Wells Fargo & Co.		546,435			22,447,550
Zions Bancorp		20,064			561,190

					51,129,518

Capital Goods 7.9%
3M Co.		70,103			7,962,299
AGCO Corp.		10,944			618,993
AMETEK, Inc.		26,562			1,140,041
B/E Aerospace, Inc. *		11,344			773,547
Carlisle Cos., Inc.		6,855			456,543
Caterpillar, Inc.		73,722			6,085,014
Chicago Bridge & Iron Co. N.V.		11,668			698,096
Colfax Corp. *		9,239			481,260
Cummins, Inc.		19,352			2,384,166
Danaher Corp.		64,359			4,216,802
Deere & Co.		42,933			3,590,916
Donaldson Co., Inc.		14,876			524,230
Dover Corp.		19,234			1,635,852
Eaton Corp. plc		52,030			3,294,540
Emerson Electric Co.		79,828			4,819,216
Fastenal Co.		29,552			1,299,993
Flowserve Corp.		15,362			857,046
Fluor Corp.		18,282			1,159,627
Fortune Brands Home & Security, Inc.		17,798			655,678
General Dynamics Corp.		36,533			3,041,372
General Electric Co.		1,146,551			26,531,190
Honeywell International, Inc.		88,159			7,014,812
Hubbell, Inc., Class B		5,662			573,900
IDEX Corp.		8,892			527,918
Illinois Tool Works, Inc.		45,823			3,274,970
Ingersoll-Rand plc		30,483			1,802,765
Jacobs Engineering Group, Inc. *		14,160			825,245
Joy Global, Inc.		11,856			582,367
KBR, Inc.		16,416			490,182
L-3 Communications Holdings, Inc.		10,222			923,353
Lincoln Electric Holdings, Inc.		9,120			570,274
Lockheed Martin Corp.		29,524			3,614,328
Masco Corp.		40,136			759,373
MSC Industrial Direct Co., Inc., Class A		4,955			376,580
Nordson Corp.		6,077			405,032
Northrop Grumman Corp.		25,997			2,398,743
Oshkosh Corp. *		9,511			427,234
Owens Corning *		12,768			478,034
PACCAR, Inc.		39,216			2,102,370
Pall Corp.		11,946			825,946
Parker Hannifin Corp.		16,458			1,644,977
Pentair Ltd. - Reg’d		23,084			1,387,579
Precision Castparts Corp.		16,142			3,409,836
Quanta Services, Inc. *		22,847			597,221
Raytheon Co.		35,892			2,706,616
Rockwell Automation, Inc.		15,504			1,507,454
Rockwell Collins, Inc.		15,546			1,100,190
Roper Industries, Inc.		10,944			1,353,773
Sensata Technologies Holding N.V. *		13,980			521,174
Snap-On, Inc.		6,390			598,104

See financial notes 45

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
SPX Corp.		5,476		405,443
Stanley Black & Decker, Inc.		17,612		1,501,599
Terex Corp. *		12,119		351,451
Textron, Inc.		31,078		837,241
The Boeing Co.		76,045		7,902,596
Timken Co.		8,592		481,668
TransDigm Group, Inc.		5,202		712,674
United Rentals, Inc. *		10,198		558,545
United Technologies Corp.		94,463		9,455,746
Valmont Industries, Inc.		2,415		325,928
W.W. Grainger, Inc.		6,596		1,631,521
WABCO Holdings, Inc. *		6,830		532,672
Wabtec Corp.		10,291		602,229
Xylem, Inc.		20,172		499,862

				140,825,946

Commercial & Professional Services 0.8%
Cintas Corp.		11,328		541,025
Copart, Inc. *		11,465		364,243
Equifax, Inc.		12,990		767,579
IHS, Inc., Class A *		5,493		588,575
Iron Mountain, Inc.		19,206		495,515
Manpowergroup, Inc.		9,122		591,561
Nielsen Holdings N.V. (a)		23,712		818,064
Republic Services, Inc.		32,548		1,058,135
Robert Half International, Inc.		15,504		546,826
Rollins, Inc.		7,057		174,661
Stericycle, Inc. *		9,362		1,053,787
The ADT Corp. *		24,407		972,131
The Dun & Bradstreet Corp.		4,274		425,177
Towers Watson & Co., Class A		6,384		525,084
Tyco International Ltd.		51,072		1,687,419
Verisk Analytics, Inc., Class A *		15,904		988,911
Waste Connections, Inc.		13,680		579,485
Waste Management, Inc.		49,902		2,018,037

				14,196,215

Consumer Durables & Apparel 1.4%
Carter’s, Inc.		5,589		411,574
Coach, Inc.		31,119		1,643,394
D.R. Horton, Inc.		30,713		548,227
Fossil Group, Inc. *		5,714		663,624
Garmin Ltd.		12,768		520,551
Hanesbrands, Inc.		10,651		633,521
Hasbro, Inc.		12,768		581,965
Jarden Corp. *		12,244		525,880
Leggett & Platt, Inc.		15,504		448,376
Lennar Corp., Class A		18,240		580,214
Mattel, Inc.		37,674		1,525,797
Michael Kors Holdings Ltd. *		19,354		1,433,938
Mohawk Industries, Inc. *		6,733		791,060
Newell Rubbermaid, Inc.		31,115		787,210
NIKE, Inc., Class B		80,830		5,077,741
NVR, Inc. *		588		503,216
Polaris Industries, Inc.		7,296		796,796
PulteGroup, Inc.		37,000		569,430
PVH Corp.		8,882		1,143,557
Ralph Lauren Corp.		6,609		1,093,195
Toll Brothers, Inc. *		15,885		486,240
Tupperware Brands Corp.		5,857		473,070
Under Armour, Inc., Class A *		9,120		662,477
VF Corp.		9,551		1,788,043
Whirlpool Corp.		8,498		1,093,268

				24,782,364

Consumer Services 2.0%
Burger King Worldwide, Inc.		5,955		116,480
Carnival Corp.		49,342		1,780,753
Chipotle Mexican Grill, Inc. *		3,654		1,491,453
Darden Restaurants, Inc.		14,132		653,040
Dunkin’ Brands Group, Inc.		7,690		331,362
H&R Block, Inc.		29,800		831,718
Hyatt Hotels Corp., Class A *		5,930		257,362
International Game Technology		28,782		543,692
Las Vegas Sands Corp.		38,714		2,181,534
Marriott International, Inc., Class A		26,609		1,064,094
McDonald’s Corp.		110,843		10,459,145
MGM Resorts International *		40,623		718,621
Norwegian Cruise Line Holdings Ltd. *		5,190		161,357
Panera Bread Co., Class A *		2,978		488,452
Penn National Gaming, Inc. *		7,481		393,426
Royal Caribbean Cruises Ltd.		15,504		568,842
Starbucks Corp.		82,622		5,826,503
Starwood Hotels & Resorts Worldwide, Inc.		21,430		1,370,234
Wyndham Worldwide Corp.		15,546		922,810
Wynn Resorts Ltd.		8,844		1,247,358
Yum! Brands, Inc.		50,302		3,522,146

				34,930,382

Diversified Financials 7.8%
Affiliated Managers Group, Inc. *		5,732		999,202
American Express Co.		105,482		7,585,211
Ameriprise Financial, Inc.		22,218		1,914,081
Bank of America Corp.		1,198,330		16,920,420
Berkshire Hathaway, Inc., Class B *		202,400		22,510,928
BlackRock, Inc.		13,827		3,599,445
Capital One Financial Corp.		65,418		4,222,732
Citigroup, Inc.		338,229		16,346,608
CME Group, Inc.		33,992		2,417,171
Discover Financial Services		54,374		2,569,171
Eaton Vance Corp.		12,768		492,206
Franklin Resources, Inc.		45,506		2,100,557
ING US, Inc.		7,061		203,357
IntercontinentalExchange, Inc. *		7,913		1,422,362
Invesco Ltd.		49,518		1,503,366
JPMorgan Chase & Co.		419,385		21,191,524
Legg Mason, Inc.		12,382		402,663
Leucadia National Corp.		31,540		786,292
LPL Financial Holdings, Inc.		3,916		144,030
McGraw Hill Financial, Inc.		30,629		1,787,815
Moody’s Corp.		21,310		1,354,464
Morgan Stanley		152,484		3,927,988
MSCI, Inc. *		13,228		496,182
Northern Trust Corp.		23,970		1,315,234
NYSE Euronext		26,874		1,123,333
Raymond James Financial, Inc.		12,556		525,217
SEI Investments Co.		14,891		443,156
SLM Corp.		49,594		1,189,760

46 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
State Street Corp.		50,208		3,349,878
T. Rowe Price Group, Inc.		28,937		2,029,641
TD Ameritrade Holding Corp.		24,624		632,098
The Bank of New York Mellon Corp.		128,023		3,807,404
The Charles Schwab Corp. (b)		120,748		2,521,218
The Goldman Sachs Group, Inc.		47,560		7,235,303
The NASDAQ OMX Group, Inc.		12,994		388,001

				139,458,018

Energy 10.3%
Anadarko Petroleum Corp.		55,346		5,059,731
Apache Corp.		43,106		3,693,322
Baker Hughes, Inc.		48,641		2,261,320
Cabot Oil & Gas Corp.		46,452		1,817,667
Cameron International Corp. *		27,466		1,559,794
Cheniere Energy, Inc. *		26,681		746,801
Chesapeake Energy Corp.		57,000		1,471,170
Chevron Corp.		214,955		25,887,031
Cimarex Energy Co.		10,032		840,782
Cobalt International Energy, Inc. *		30,789		751,252
Concho Resources, Inc. *		11,856		1,144,223
ConocoPhillips		136,638		9,059,099
CONSOL Energy, Inc.		24,713		771,787
Continental Resources, Inc. *		6,384		588,988
Core Laboratories N.V.		4,994		756,641
CVR Energy, Inc.		1,465		62,731
Denbury Resources, Inc. *		42,864		741,119
Devon Energy Corp.		41,724		2,382,023
Diamond Offshore Drilling, Inc.		7,596		486,372
Dresser-Rand Group, Inc. *		8,326		507,386
Ensco plc, Class A		25,560		1,420,114
EOG Resources, Inc.		30,096		4,726,577
EQT Corp.		16,416		1,407,179
Exxon Mobil Corp.		492,081		42,889,780
FMC Technologies, Inc. *		26,448		1,418,406
Halliburton Co.		95,667		4,592,016
Helmerich & Payne, Inc.		12,573		792,602
Hess Corp.		32,863		2,459,796
HollyFrontier Corp.		22,261		990,169
Kinder Morgan, Inc.		70,224		2,663,596
Marathon Oil Corp.		77,979		2,684,817
Marathon Petroleum Corp.		36,005		2,610,723
Murphy Oil Corp.		20,248		1,365,120
Nabors Industries Ltd.		31,924		491,630
National Oilwell Varco, Inc.		47,033		3,494,552
Newfield Exploration Co. *		14,596		347,677
Noble Corp.		27,644		1,028,357
Noble Energy, Inc.		39,475		2,424,949
Oasis Petroleum, Inc. *		7,700		301,840
Occidental Petroleum Corp.		89,801		7,921,346
Oceaneering International, Inc.		11,857		919,866
Oil States International, Inc. *		7,070		630,785
Peabody Energy Corp.		29,541		508,105
Phillips 66		68,200		3,894,220
Pioneer Natural Resources Co.		15,033		2,630,324
QEP Resources, Inc.		19,253		525,992
Range Resources Corp.		18,240		1,367,635
Rowan Cos. plc, Class A *		13,732		486,387
Schlumberger Ltd.		146,903		11,890,329
SM Energy Co.		7,296		498,463
Southwestern Energy Co. *		38,312		1,463,518
Spectra Energy Corp.		74,784		2,476,098
Superior Energy Services, Inc. *		17,328		425,576
Tesoro Corp.		15,120		696,881
The Williams Cos., Inc.		75,227		2,726,226
Transocean Ltd.		39,510		1,783,086
Valero Energy Corp.		60,887		2,163,315
Weatherford International Ltd. *		82,992		1,237,411
Whiting Petroleum Corp. *		12,946		653,385

				183,598,087

Food & Staples Retailing 2.1%
Costco Wholesale Corp.		49,045		5,486,664
CVS Caremark Corp.		135,994		7,894,452
Safeway, Inc.		26,477		685,754
Sprouts Farmers Market, Inc. *		2,064		76,285
Sysco Corp.		64,879		2,077,426
The Kroger Co.		57,849		2,117,273
Wal-Mart Stores, Inc.		180,822		13,196,390
Walgreen Co.		94,969		4,565,160
Whole Foods Market, Inc.		37,865		1,997,379

				38,096,783

Food, Beverage & Tobacco 5.2%
Altria Group, Inc.		221,954		7,519,801
Archer-Daniels-Midland Co.		72,430		2,550,260
Beam, Inc.		17,623		1,104,081
Brown-Forman Corp., Class B		16,548		1,108,551
Bunge Ltd.		15,892		1,204,296
Campbell Soup Co.		19,579		845,421
Coca-Cola Enterprises, Inc.		28,475		1,064,965
ConAgra Foods, Inc.		45,685		1,545,067
Constellation Brands, Inc., Class A *		16,761		909,284
Dr. Pepper Snapple Group, Inc.		22,964		1,027,869
Flowers Foods, Inc.		18,739		389,584
General Mills, Inc.		71,405		3,521,695
Green Mountain Coffee Roasters, Inc. *		13,680		1,180,721
Hillshire Brands Co.		12,870		415,830
Hormel Foods Corp.		14,609		605,251
Ingredion, Inc.		8,289		521,710
Kellogg Co.		27,987		1,699,091
Kraft Foods Group, Inc.		66,107		3,422,359
Lorillard, Inc.		42,384		1,792,843
McCormick & Co., Inc. Non Voting Shares		14,592		987,149
Mead Johnson Nutrition Co.		22,234		1,668,217
Molson Coors Brewing Co., Class B		17,328		845,433
Mondelez International, Inc., Class A		198,938		6,101,428
Monster Beverage Corp. *		16,084		923,061
PepsiCo, Inc.		170,914		13,626,973
Philip Morris International, Inc.		181,866		15,174,899
Reynolds American, Inc.		35,035		1,668,717
The Coca-Cola Co.		425,780		16,256,280
The Hershey Co.		16,581		1,524,623
The J.M. Smucker Co.		11,989		1,272,512
Tyson Foods, Inc., Class A		31,281		905,585

				93,383,556

See financial notes 47

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Health Care Equipment & Services 4.3%
Abbott Laboratories		172,010		5,733,093
Aetna, Inc.		42,036		2,664,662
AmerisourceBergen Corp.		25,906		1,474,570
Baxter International, Inc.		59,642		4,148,697
Becton Dickinson & Co.		21,192		2,063,677
Boston Scientific Corp. *		149,812		1,585,011
C.R. Bard, Inc.		8,460		971,800
Cardinal Health, Inc.		37,409		1,880,924
CareFusion Corp. *		24,624		882,770
Cerner Corp. *		32,135		1,480,138
Cigna Corp.		31,268		2,460,479
Community Health Systems, Inc.		10,126		397,547
Covidien plc		52,116		3,095,690
DaVita HealthCare Partners, Inc. *		9,256		995,113
DENTSPLY International, Inc.		15,554		653,112
Edwards Lifesciences Corp. *		12,768		898,612
Express Scripts Holding Co. *		90,288		5,767,597
HCA Holdings, Inc.		26,794		1,023,263
Henry Schein, Inc. *		9,546		964,623
Hologic, Inc. *		29,184		622,787
Humana, Inc.		17,434		1,605,323
IDEXX Laboratories, Inc. *		5,762		540,591
Intuitive Surgical, Inc. *		4,661		1,801,570
Laboratory Corp. of America Holdings *		10,307		986,586
McKesson Corp.		24,983		3,033,186
MEDNAX, Inc. *		5,502		535,730
Medtronic, Inc.		111,732		5,782,131
Omnicare, Inc.		12,522		680,821
Patterson Cos., Inc.		8,845		352,739
Quest Diagnostics, Inc.		17,335		1,016,178
ResMed, Inc. (a)		16,178		764,249
Sirona Dental Systems, Inc. *		6,082		393,931
St. Jude Medical, Inc.		31,202		1,572,893
Stryker Corp.		31,962		2,137,938
Tenet Healthcare Corp. *		11,366		443,842
The Cooper Cos., Inc.		6,097		796,329
UnitedHealth Group, Inc.		112,544		8,073,907
Universal Health Services, Inc., Class B		10,036		679,939
Varian Medical Systems, Inc. *		11,898		838,214
WellPoint, Inc.		33,284		2,833,800
Zimmer Holdings, Inc.		18,588		1,470,125

				76,104,187

Household & Personal Products 2.2%
Avon Products, Inc.		47,138		931,918
Church & Dwight Co., Inc.		15,118		897,253
Colgate-Palmolive Co.		97,038		5,605,885
Coty, Inc., Class A *		6,222		101,419
Energizer Holdings, Inc.		6,661		658,307
Herbalife Ltd. (a)		11,910		726,629
Kimberly-Clark Corp.		42,568		3,979,257
The Clorox Co.		14,593		1,206,841
The Estee Lauder Cos., Inc., Class A		26,462		1,729,556
The Procter & Gamble Co.		303,827		23,665,085

				39,502,150

Insurance 3.2%
ACE Ltd.		37,394		3,280,202
Aflac, Inc.		51,233		2,960,755
Alleghany Corp. *		1,824		706,052
American Financial Group, Inc.		8,445		435,171
American International Group, Inc. *		162,914		7,568,984
Aon plc		34,272		2,274,975
Arch Capital Group Ltd. *		14,872		792,826
Arthur J. Gallagher & Co.		13,692		566,027
Axis Capital Holdings Ltd.		12,007		516,181
Brown & Brown, Inc.		12,815		399,059
Cincinnati Financial Corp.		16,463		752,030
CNA Financial Corp.		2,781		98,114
Erie Indemnity Co., Class A		2,813		207,487
Everest Re Group Ltd.		5,635		771,713
Fidelity National Financial, Inc., Class A		23,712		562,212
Genworth Financial, Inc., Class A *		53,820		635,076
Hartford Financial Services Group, Inc.		50,288		1,488,525
HCC Insurance Holdings, Inc.		10,779		454,874
Lincoln National Corp.		29,325		1,232,823
Loews Corp.		34,229		1,521,821
Markel Corp. *		1,567		800,267
Marsh & McLennan Cos., Inc.		60,492		2,494,085
MetLife, Inc.		122,231		5,645,850
PartnerRe Ltd.		6,574		572,924
Principal Financial Group, Inc.		30,420		1,244,786
Prudential Financial, Inc.		51,298		3,841,194
Reinsurance Group of America, Inc.		8,208		531,961
RenaissanceRe Holdings Ltd.		5,018		438,573
The Allstate Corp.		51,678		2,476,410
The Chubb Corp.		28,720		2,388,642
The Progressive Corp.		60,727		1,522,426
The Travelers Cos., Inc.		41,600		3,323,840
Torchmark Corp.		10,316		710,669
Unum Group		29,407		868,389
Validus Holdings Ltd.		11,083		383,583
W.R. Berkley Corp.		12,140		499,197
White Mountains Insurance Group Ltd.		666		372,794
Willis Group Holdings plc		18,994		784,072
XL Group plc		31,652		935,633

				57,060,202

Materials 3.6%
Air Products & Chemicals, Inc.		23,162		2,365,767
Airgas, Inc.		7,590		771,523
Albemarle Corp.		10,149		632,993
Alcoa, Inc.		117,648		905,890
Ashland, Inc.		9,253		806,954
Avery Dennison Corp.		10,792		461,466
Axiall Corp.		7,600		304,228
Ball Corp.		16,810		746,700
Bemis Co., Inc.		11,856		471,750
Celanese Corp., Series A		17,338		853,723
CF Industries Holdings, Inc.		6,530		1,242,920
Cliffs Natural Resources, Inc. (a)		19,040		397,365
Crown Holdings, Inc. *		16,416		713,439
E.I. du Pont de Nemours & Co.		101,568		5,750,780

48 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Eastman Chemical Co.		17,328		1,316,928
Ecolab, Inc.		29,216		2,668,882
FMC Corp.		15,521		1,033,854
Freeport-McMoRan Copper & Gold, Inc.		114,519		3,460,764
Huntsman Corp.		21,046		368,305
International Flavors & Fragrances, Inc.		9,120		720,571
International Paper Co.		49,437		2,333,921
LyondellBasell Industries N.V., Class A		41,618		2,919,503
Martin Marietta Materials, Inc.		4,860		466,803
MeadWestvaco Corp.		19,306		692,120
Monsanto Co.		59,006		5,776,097
Newmont Mining Corp.		54,778		1,740,297
Nucor Corp.		34,930		1,588,966
Owens-Illinois, Inc. *		18,240		517,834
Packaging Corp. of America		10,639		564,293
PPG Industries, Inc.		15,693		2,451,403
Praxair, Inc.		32,868		3,858,703
Reliance Steel & Aluminum Co.		8,208		547,391
Rock-Tenn Co., Class A		8,208		911,991
Rockwood Holdings, Inc.		8,466		540,639
Royal Gold, Inc.		6,826		396,113
RPM International, Inc.		14,377		488,530
Sealed Air Corp.		21,923		622,613
Sigma-Aldrich Corp.		13,082		1,078,873
The Dow Chemical Co.		134,229		5,020,165
The Mosaic Co.		30,354		1,264,244
The Sherwin-Williams Co.		9,348		1,611,595
The Valspar Corp.		9,162		569,510
Valhi, Inc.		2,160		42,595
Vulcan Materials Co.		14,042		671,208
W.R. Grace & Co. *		7,560		607,446
Westlake Chemical Corp.		2,040		206,407

				63,484,062

Media 3.8%
AMC Networks, Inc., Class A *		6,485		401,940
Cablevision Systems Corp., Class A		23,277		412,701
CBS Corp., Class B Non Voting Shares		63,306		3,234,937
Charter Communications, Inc., Class A *		7,153		868,517
Comcast Corp., Class A		293,445		12,351,100
DIRECTV *		61,610		3,584,470
Discovery Communications, Inc., class A *		26,948		2,088,740
DISH Network Corp., Class A		22,322		1,003,597
Gannett Co., Inc.		24,651		593,843
Lamar Advertising Co., Class A *		5,959		250,695
Liberty Global plc, Class A *		39,356		3,057,174
Liberty Media Corp. *		12,353		1,685,937
News Corp., Class A *		54,907		862,040
Omnicom Group, Inc.		28,519		1,729,677
Scripps Networks Interactive, Inc., Class A		9,421		692,726
Sirius XM Radio, Inc.		350,372		1,254,332
The Interpublic Group of Cos., Inc.		46,559		731,908
The Madison Square Garden Co., Class A *		6,660		387,612
The Walt Disney Co.		200,641		12,204,992
Time Warner Cable, Inc.		32,038		3,439,279
Time Warner, Inc.		103,227		6,248,330
Twenty-First Century Fox, Inc.		219,629		6,880,977
Viacom, Inc., Class B		49,172		3,912,124

				67,877,648

Pharmaceuticals, Biotechnology & Life Sciences 8.3%
AbbVie, Inc.		175,104		7,461,181
Actavis, Inc. *		13,970		1,888,465
Agilent Technologies, Inc.		38,304		1,786,499
Alexion Pharmaceuticals, Inc. *		21,518		2,318,780
Allergan, Inc.		32,657		2,886,226
Amgen, Inc.		82,681		9,007,268
Biogen Idec, Inc. *		26,174		5,575,585
BioMarin Pharmaceutical, Inc. *		15,263		999,269
Bristol-Myers Squibb Co.		183,611		7,654,743
Celgene Corp. *		46,212		6,468,756
Covance, Inc. *		6,384		517,359
Eli Lilly & Co.		110,103		5,659,294
Endo Health Solutions, Inc. *		12,244		503,106
Forest Laboratories, Inc. *		25,728		1,094,212
Gilead Sciences, Inc. *		168,102		10,131,507
Hospira, Inc. *		18,240		711,907
Illumina, Inc. *		13,696		1,066,097
Johnson & Johnson		311,333		26,902,284
Life Technologies Corp. *		18,724		1,393,253
Mallinckrodt plc *		6,506		283,987
Medivation, Inc. *		7,984		451,335
Merck & Co., Inc.		335,899		15,884,664
Mettler-Toledo International, Inc. *		3,178		699,891
Mylan, Inc. *		42,067		1,486,648
Onyx Pharmaceuticals, Inc. *		7,930		979,989
PerkinElmer, Inc.		12,772		459,409
Perrigo Co.		10,061		1,222,915
Pfizer, Inc.		741,322		20,912,694
Pharmacyclics, Inc. *		5,520		615,480
Quintiles Transnational Holdings, Inc. *		2,446		105,814
Regeneron Pharmaceuticals, Inc. *		8,387		2,032,254
Seattle Genetics, Inc. *		11,308		479,459
Thermo Fisher Scientific, Inc.		39,339		3,494,483
Vertex Pharmaceuticals, Inc. *		25,772		1,936,766
Warner Chilcott plc, Class A		20,064		430,373
Waters Corp. *		9,471		936,208
Zoetis, Inc.		54,843		1,598,673

				148,036,833

Real Estate 2.8%
Alexandria Real Estate Equities, Inc.		9,083		560,149
American Campus Communities, Inc.		11,324		377,202
American Capital Agency Corp.		43,160		982,322
American Tower Corp.		43,776		3,041,994
Annaly Capital Management, Inc.		107,701		1,256,871
Apartment Investment & Management Co., Class A		15,938		438,773
AvalonBay Communities, Inc.		13,361		1,655,428
Boston Properties, Inc.		16,616		1,703,140
BRE Properties, Inc.		8,229		394,910

See financial notes 49

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Camden Property Trust		9,120		563,525
CBL & Associates Properties, Inc.		17,671		339,283
CBRE Group, Inc., Class A *		33,192		725,909
Corrections Corp. of America		12,231		402,889
DDR Corp.		26,448		410,473
Digital Realty Trust, Inc. (a)		13,859		770,560
Duke Realty Corp.		35,260		514,443
Equity Residential		35,180		1,825,490
Essex Property Trust, Inc.		4,078		584,418
Extra Space Storage, Inc.		11,255		464,044
Federal Realty Investment Trust		7,296		709,974
General Growth Properties, Inc.		49,486		949,141
HCP, Inc.		50,630		2,062,160
Health Care REIT, Inc.		32,885		2,020,454
Host Hotels & Resorts, Inc.		82,231		1,400,394
Jones Lang LaSalle, Inc.		4,750		390,640
Kilroy Realty Corp.		8,244		402,225
Kimco Realty Corp.		44,731		895,962
Liberty Property Trust		12,768		441,773
National Retail Properties, Inc.		12,555		384,560
Plum Creek Timber Co., Inc.		18,240		808,214
Prologis, Inc.		54,557		1,922,589
Public Storage		16,142		2,464,399
Rayonier, Inc.		13,680		755,683
Realogy Holdings Corp. *		12,962		548,681
Realty Income Corp.		21,325		842,337
Regency Centers Corp.		10,032		477,022
Senior Housing Properties Trust		20,612		468,923
Simon Property Group, Inc.		34,264		4,989,866
SL Green Realty Corp.		10,426		909,043
Taubman Centers, Inc.		7,473		503,755
The Macerich Co.	��	14,960		841,949
Two Harbors Investment Corp.		38,513		366,259
UDR, Inc.		27,534		621,993
Ventas, Inc.		32,180		2,003,527
Vornado Realty Trust		19,943		1,621,366
Weingarten Realty Investors		12,212		350,607
Weyerhaeuser Co.		66,002		1,807,135
WP Carey, Inc.		6,111		401,676

				49,374,130

Retailing 4.4%
Abercrombie & Fitch Co., Class A		9,120		322,027
Advance Auto Parts, Inc.		8,225		658,576
Amazon.com, Inc. *		40,454		11,366,765
American Eagle Outfitters, Inc.		19,353		280,038
AutoNation, Inc. *		3,758		175,649
AutoZone, Inc. *		4,206		1,766,268
Bed Bath & Beyond, Inc. *		24,101		1,777,208
Best Buy Co., Inc.		29,257		1,053,252
CarMax, Inc. *		25,079		1,192,757
CST Brands, Inc. *		6,717		198,151
Dick’s Sporting Goods, Inc.		10,456		485,263
Dillard’s, Inc., Class A		3,110		237,169
Dollar General Corp. *		33,276		1,795,906
Dollar Tree, Inc. *		24,695		1,301,426
Expedia, Inc.		10,090		471,808
Family Dollar Stores, Inc.		10,416		741,515
Foot Locker, Inc.		17,328		557,962
Genuine Parts Co.		17,375		1,338,049
J.C. Penney Co., Inc. *(a)		16,447		205,259
Kohl’s Corp.		22,980		1,179,104
L Brands, Inc.		26,020		1,492,507
Liberty Interactive Corp., Class A *		56,906		1,284,937
LKQ Corp. *		32,832		960,008
Lowe’s Cos., Inc.		118,326		5,421,697
Macy’s, Inc.		42,320		1,880,278
Netflix, Inc. *		6,488		1,842,008
Nordstrom, Inc.		16,187		902,101
O’Reilly Automotive, Inc. *		12,351		1,515,591
PetSmart, Inc.		11,869		835,934
Priceline.com, Inc. *		5,674		5,325,219
Ross Stores, Inc.		24,678		1,659,842
Sally Beauty Holdings, Inc. *		16,942		442,694
Sears Holdings Corp. *(a)		3,832		169,528
Signet Jewelers Ltd.		8,592		570,509
Staples, Inc.		74,282		1,033,263
Target Corp.		70,782		4,481,208
The Gap, Inc.		31,783		1,285,305
The Home Depot, Inc.		162,261		12,086,822
Tiffany & Co.		13,027		1,004,512
TJX Cos., Inc.		79,441		4,188,129
Tractor Supply Co.		7,538		922,425
TripAdvisor, Inc. *		12,030		889,859
Ulta Salon, Cosmetics & Fragrance, Inc. *		6,384		633,548
Urban Outfitters, Inc. *		11,943		500,770
Williams-Sonoma, Inc.		9,400		530,254

				78,963,100

Semiconductors & Semiconductor Equipment 2.0%
Altera Corp.		35,670		1,254,514
Analog Devices, Inc.		33,789		1,563,755
Applied Materials, Inc.		132,320		1,986,123
Avago Technologies Ltd.		23,746		914,458
Broadcom Corp., Class A		57,745		1,458,639
Cree, Inc. *		12,784		709,384
Freescale Semiconductor Ltd. *		5,562		79,648
Intel Corp.		553,635		12,168,897
KLA-Tencor Corp.		18,277		1,007,977
Lam Research Corp. *		18,353		856,534
Linear Technology Corp.		25,106		962,313
LSI Corp. *		62,968		466,593
Marvell Technology Group Ltd.		49,894		604,216
Maxim Integrated Products, Inc.		32,244		897,834
Microchip Technology, Inc.		21,009		815,359
Micron Technology, Inc. *		112,745		1,529,950
NVIDIA Corp.		67,488		995,448
ON Semiconductor Corp. *		48,336		349,953
Skyworks Solutions, Inc. *		21,888		555,080
Texas Instruments, Inc.		121,783		4,652,111
Xilinx, Inc.		29,228		1,269,080

				35,097,866

Software & Services 9.5%
Accenture plc, Class A		71,693		5,179,819
Activision Blizzard, Inc.		45,953		749,953
Adobe Systems, Inc. *		55,016		2,516,982
Akamai Technologies, Inc. *		20,064		922,543
Alliance Data Systems Corp. *		5,472		1,070,870
Amdocs Ltd.		17,696		652,275

50 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
ANSYS, Inc. *		10,042		843,327
Autodesk, Inc. *		24,624		904,932
Automatic Data Processing, Inc.		53,280		3,791,405
BMC Software, Inc. *		14,337		659,502
CA, Inc.		37,591		1,099,537
Cadence Design Systems, Inc. *		31,029		417,961
Citrix Systems, Inc. *		20,976		1,484,472
Cognizant Technology Solutions Corp., Class A *		33,470		2,453,351
Computer Sciences Corp.		16,906		847,836
Concur Technologies, Inc. *		4,850		473,942
eBay, Inc. *		128,734		6,435,413
Electronic Arts, Inc. *		33,412		890,096
Equinix, Inc. *		5,472		950,705
Facebook, Inc., Class A *		62,648		2,586,109
FactSet Research Systems, Inc. (a)		4,630		473,880
Fidelity National Information Services, Inc.		32,276		1,434,991
Fiserv, Inc. *		14,743		1,419,309
FleetCor Technologies, Inc. *		7,462		769,407
Fortinet, Inc. *		14,150		280,170
Gartner, Inc. *		10,170		589,555
Genpact Ltd.		14,666		282,321
Global Payments, Inc.		8,588		409,218
Google, Inc., Class A *		29,756		25,200,356
IAC/InterActiveCorp		8,608		422,567
Informatica Corp. *		11,856		424,089
International Business Machines Corp.		115,656		21,080,619
Intuit, Inc.		30,581		1,942,811
Jack Henry & Associates, Inc.		9,408		469,459
LinkedIn Corp., Class A *		7,523		1,805,821
Mastercard, Inc., Class A		11,698		7,089,924
MICROS Systems, Inc. *		8,630		422,007
Microsoft Corp.		833,043		27,823,636
NetSuite, Inc. *		2,910		289,341
Nuance Communications, Inc. *		28,346		541,125
Oracle Corp.		407,956		12,997,478
Paychex, Inc.		35,568		1,375,770
Rackspace Hosting, Inc. *		11,898		533,268
Red Hat, Inc. *		21,018		1,061,829
SAIC, Inc.		31,154		469,491
Salesforce.com, Inc. *		59,446		2,920,582
ServiceNow, Inc. *		1,433		67,179
SolarWinds, Inc. *		6,590		240,206
Solera Holdings, Inc.		7,343		379,046
Symantec Corp.		77,546		1,985,953
Synopsys, Inc. *		16,474		597,347
Teradata Corp. *		18,878		1,105,496
The Western Union Co.		61,482		1,077,779
TIBCO Software, Inc. *		16,600		374,164
Total System Services, Inc.		17,642		488,154
Vantiv, Inc., Class A *		12,715		335,803
VeriFone Systems, Inc. *		11,856		234,986
VeriSign, Inc. *		17,447		837,282
Visa, Inc., Class A		55,913		9,752,345
VMware, Inc., Class A *		9,338		785,793
Workday, Inc., Class A *		2,394		173,637
Yahoo! Inc. *		107,004		2,901,948

				168,797,172

Technology Hardware & Equipment 6.3%
3D Systems Corp. *(a)		10,201		524,331
Amphenol Corp., Class A		17,398		1,318,246
Apple, Inc.		104,011		50,658,558
Arrow Electronics, Inc. *		11,856		550,356
Avnet, Inc. *		15,504		597,834
Cisco Systems, Inc.		594,774		13,864,182
Corning, Inc.		164,355		2,307,544
Dell, Inc.		160,784		2,213,996
EMC Corp.		231,720		5,973,742
F5 Networks, Inc. *		8,450		704,561
FLIR Systems, Inc.		14,952		467,699
Harris Corp.		12,775		723,448
Hewlett-Packard Co.		212,842		4,754,890
Jabil Circuit, Inc.		20,976		478,672
JDS Uniphase Corp. *		24,972		320,391
Juniper Networks, Inc. *		55,650		1,051,785
Molex, Inc.		15,759		457,326
Motorola Solutions, Inc.		30,350		1,699,903
National Instruments Corp.		10,371		287,795
NCR Corp. *		17,375		618,203
NetApp, Inc.		40,128		1,666,917
Palo Alto Networks, Inc. *		3,256		156,353
QUALCOMM, Inc.		191,896		12,718,867
SanDisk Corp.		26,448		1,459,401
Seagate Technology plc		35,076		1,344,112
TE Connectivity Ltd.		45,740		2,241,260
Trimble Navigation Ltd. *		29,664		749,016
Western Digital Corp.		23,435		1,452,970
Xerox Corp.		135,175		1,349,047

				112,711,405

Telecommunication Services 2.5%
AT&T, Inc.		597,374		20,209,162
CenturyLink, Inc.		67,740		2,243,549
Crown Castle International Corp. *		32,226		2,237,129
Frontier Communications Corp. (a)		113,126		489,835
Level 3 Communications, Inc. *		17,328		387,454
SBA Communications Corp., Class A *		14,318		1,073,850
Sprint Corp. *		98,486		660,841
T-Mobile US, Inc. *		17,005		397,067
tw telecom, Inc. *		16,677		477,296
Verizon Communications, Inc.		315,706		14,958,150
Windstream Corp. (a)		63,840		515,189

				43,649,522

Transportation 1.9%
C.H. Robinson Worldwide, Inc.		18,240		1,037,309
CSX Corp.		113,394		2,790,626
Delta Air Lines, Inc.		93,710		1,848,898
Expeditors International of Washington, Inc.		22,301		904,529
FedEx Corp.		33,322		3,577,450
Genesee & Wyoming, Inc., Class A *		5,245		454,112
Hertz Global Holdings, Inc. *		44,125		1,060,324
J.B. Hunt Transport Services, Inc.		9,633		693,576
Kansas City Southern		12,017		1,266,832
Kirby Corp. *		6,073		488,451

See financial notes 51

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Norfolk Southern Corp.		34,747		2,507,344
Southwest Airlines Co.		81,686		1,046,398
Union Pacific Corp.		51,484		7,904,853
United Continental Holdings, Inc. *		36,483		1,038,306
United Parcel Service, Inc., Class B		78,958		6,757,226

				33,376,234

Utilities 3.3%
AES Corp.		71,136		904,139
AGL Resources, Inc.		12,798		562,472
Alliant Energy Corp.		12,022		596,411
Ameren Corp.		26,452		894,342
American Electric Power Co., Inc.		53,808		2,302,982
American Water Works Co., Inc.		20,698		843,237
Aqua America, Inc.		15,504		470,856
Calpine Corp. *		42,247		816,634
CenterPoint Energy, Inc.		46,875		1,074,844
CMS Energy Corp.		28,698		761,358
Consolidated Edison, Inc.		32,832		1,846,143
Dominion Resources, Inc.		63,840		3,725,064
DTE Energy Co.		20,478		1,369,364
Duke Energy Corp.		77,686		5,096,202
Edison International		35,788		1,642,311
Entergy Corp.		19,794		1,251,575
Exelon Corp.		94,848		2,891,916
FirstEnergy Corp.		45,984		1,723,020
Integrys Energy Group, Inc.		8,317		465,087
ITC Holdings Corp.		5,980		531,562
MDU Resources Group, Inc.		20,569		549,192
National Fuel Gas Co.		9,162		598,095
NextEra Energy, Inc.		47,202		3,793,153
NiSource, Inc.		34,074		997,005
Northeast Utilities		34,732		1,422,970
NRG Energy, Inc.		35,610		934,762
NV Energy, Inc.		25,579		599,828
OGE Energy Corp.		21,912		771,522
ONEOK, Inc.		22,368		1,150,610
Pepco Holdings, Inc.		27,415		519,240
PG&E Corp.		48,430		2,003,065
Pinnacle West Capital Corp.		12,066		654,822
PPL Corp.		71,136		2,183,875
Public Service Enterprise Group, Inc.		55,888		1,811,889
Questar Corp.		19,253		422,026
SCANA Corp.		15,186		730,750
Sempra Energy		24,814		2,094,798
TECO Energy, Inc.		21,935		362,586
The Southern Co.		96,778		4,027,900
UGI Corp.		12,768		500,506
Westar Energy, Inc.		13,764		428,198
Wisconsin Energy Corp.		25,536		1,047,997
Xcel Energy, Inc.		56,656		1,581,836

				58,956,144

Total Common Stock
(Cost $1,511,770,197)				1,774,928,368




Other Investment Companies 0.2% of net assets

Equity Fund 0.1%
iShares Russell 1000 ETF		28,000		2,555,560

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund 0.00% (c)		1,285,643		1,285,643

Total Other Investment Companies
(Cost $3,833,776)				3,841,203



End of Investments.



Collateral Invested for Securities on Loan 0.2% of net assets


State Street Institutional U.S. Government Money Market Fund 0.00% (c)		4,225,304		4,225,304

Total Collateral Invested for Securities on Loan
(Cost $4,225,304)				4,225,304



End of Collateral Invested for Securities on Loan

At 08/31/13, the tax basis cost of the fund’s investments was $1,516,040,534 and the unrealized appreciation and depreciation were $281,487,689 and ($18,758,652), respectively, with a net unrealized appreciation of $262,729,037.


*		Non-income producing security.
(a)		All or a portion of this security is on loan. Securities on loan were valued at $5,390,058.
(b)		Issuer is affiliated with the fund’s adviser.
(c)		The rate shown is the 7-day yield.


ETF —		Exchange Traded Fund
Reg’d —		Registered
REIT —		Real Estate Investment Trust

52 See financial notes

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, 2013 (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		$1,774,928,368		$—		$—		$1,774,928,368
Other Investment Companies¹		3,841,203		—		—		3,841,203

Total		$1,778,769,571		$—		$—		$1,778,769,571

Other Financial Instruments
Collateral Invested for Securities on Loan		$4,225,304		$—		$—		$4,225,304


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

2012

(Losses)

Purchases

Sales

out

2013

Rights

$—

$1,451

$4,000

$2,667

($8,118

)

$—

Total

$—

$1,451

$4,000

$2,667

($8,118

)

$—

See financial notes 53

Schwab U.S. Large-Cap ETF

Statement of

Assets and Liabilities

As of August 31, 2013



Assets

Investments in affiliated issuers, at value (cost $2,047,367)		$2,521,218
Investments in unaffiliated issuers, at value (cost $1,513,556,606) including securities on loan of $5,390,058	+	1,776,248,353

Total investments, at value (cost $1,515,603,973)		1,778,769,571
Collateral invested for securities on loan		4,225,304
Receivables:
Investments sold		340,723
Fund shares sold		5,880,592
Dividends		3,745,981
Income from securities on loan		6,834
Foreign tax reclaims	+	4,391

Total assets		1,792,973,396

Liabilities

Collateral held for securities on loan		4,225,304
Payables:
Investments bought		7,460,495
Investment adviser fees	+	5,804

Total liabilities		11,691,603

Net Assets

Total assets		1,792,973,396
Total liabilities	−	11,691,603

Net assets		$1,781,281,793

Net Assets by Source
Capital received from investors		1,519,705,863
Net investment income not yet distributed		5,860,258
Net realized capital losses		(7,449,926	)
Net unrealized capital gains		263,165,598

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$1,781,281,793

45,600,000

$39.06

54 See financial notes

Schwab U.S. Large-Cap ETF

Statement of

Operations

For the period September 1, 2012 through August 31, 2013



Investment Income

Dividends received from affiliated issuer		$22,984
Dividends received from unaffiliated issuers (net of foreign withholding tax of $19,605)		28,486,469
Interest		301
Securities on loan	+	65,473

Total investment income		28,575,227

Expenses

Investment adviser fees		534,231

Total expenses	−	534,231

Net investment income		28,040,996

Realized and Unrealized Gains (Losses)

Net realized gains on affiliated issuer		28,354
Net realized losses on unaffiliated investments		(4,638,065	)
Net realized gains on in-kind redemptions	+	21,650,149

Net realized gains		17,040,438
Net unrealized gains on affiliated issuer		664,604
Net unrealized gains on unaffiliated investments	+	166,442,328

Net unrealized gains	+	167,106,932

Net realized and unrealized gains		184,147,370

Net increase in net assets resulting from operations		$212,188,366

See financial notes 55

Schwab U.S. Large-Cap ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/12-8/31/13				9/1/11-8/31/12
Net investment income		$28,040,996			$16,197,348
Net realized gains		17,040,438			7,854,618
Net unrealized gains	+	167,106,932			97,201,951

Net increase in net assets resulting from operations		212,188,366			121,253,917

Distributions to Shareholders

Distributions from net investment income		($25,323,080	)		($14,860,890	)

Transactions in Fund Shares

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

20,800,000

$771,113,187

6,850,000

$211,482,525

Shares redeemed

(1,800,000

)

(67,504,590

)

(1,400,001

)

(42,848,148

)

Net transactions in fund shares

19,000,000

$703,608,597

5,449,999

$168,634,377

Shares Outstanding and Net Assets

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

26,600,000

$890,807,910

21,150,001

$615,780,506

Total increase

19,000,000

890,473,883

5,449,999

275,027,404

End of period

45,600,000

$1,781,281,793

26,600,000

$890,807,910

Net investment income not yet distributed

$5,860,258

$3,272,234

56 See financial notes

Schwab U.S. Large-Cap Growth ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			9/1/10–			12/9/09¹–
	8/31/13			8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		34.05			29.44			24.21			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.55			0.36			0.27			0.15
Net realized and unrealized gains (losses)		5.52			4.59			5.20			(0.83	)

Total from investment operations		6.07			4.95			5.47			(0.68	)
Less distributions:
Distributions from net investment income		(0.52	)		(0.34	)		(0.24	)		(0.11	)

Net asset value at end of period		39.60			34.05			29.44			24.21

Total return (%)		18.02			16.96			22.57			(2.75	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.07			0.13			0.13			0.14	^3,4
Gross operating expenses		0.07			0.13			0.13			0.14	³
Net investment income (loss)		1.55			1.17			0.93			0.86	³
Portfolio turnover rate⁵		11			8			10			6	²
Net assets, end of period ($ x 1,000)		827,613			475,062			309,155			108,946

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Effective June 14, 2010, the annual operating expense ratio was reduced. The ratio presented for period ended 8/31/10 is a blended ratio.

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

See financial notes 57

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings as of August 31, 2013

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		684,426,677		825,128,444
	0	.2%	Other Investment Companies		1,546,911		1,561,974


	99	.9%	Total Investments		685,973,588		826,690,418
	0	.4%	Collateral Invested for Securities on Loan		2,908,780		2,908,780
	(0	.3)%	Other Assets and Liabilities, Net				(1,986,297	)


	100	.0%	Net Assets				827,612,901


	Number		Value
Security	of Shares		($)

Common Stock 99.7% of net assets

Automobiles & Components 0.7%
Allison Transmission Holdings, Inc.		5,497		123,737
Autoliv, Inc.		9,712		786,478
BorgWarner, Inc.		11,856		1,145,053
Johnson Controls, Inc.		70,342		2,850,961
Tesla Motors, Inc. *(a)		7,321		1,237,249

				6,143,478

Banks 0.3%
CIT Group, Inc. *		20,623		987,223
SunTrust Banks, Inc.		55,374		1,773,075

				2,760,298

Capital Goods 7.0%
AGCO Corp.		9,828		555,872
AMETEK, Inc.		24,950		1,070,854
B/E Aerospace, Inc. *		11,348		773,820
Caterpillar, Inc.		67,406		5,563,691
Chicago Bridge & Iron Co. N.V.		10,879		650,891
Colfax Corp. *		8,663		451,256
Cummins, Inc.		18,409		2,267,989
Danaher Corp.		59,572		3,903,157
Deere & Co.		39,655		3,316,744
Donaldson Co., Inc.		13,582		478,630
Dover Corp.		17,559		1,493,393
Emerson Electric Co.		73,708		4,449,752
Fastenal Co.		27,726		1,219,667
Flowserve Corp.		14,712		820,782
Fluor Corp.		16,634		1,055,095
Fortune Brands Home & Security, Inc.		16,741		616,738
Illinois Tool Works, Inc.		42,293		3,022,681
Jacobs Engineering Group, Inc. *		13,382		779,903
Joy Global, Inc.		10,903		535,555
KBR, Inc.		14,896		444,795
Lincoln Electric Holdings, Inc.		8,447		528,191
MSC Industrial Direct Co., Inc., Class A		4,842		367,992
Nordson Corp.		5,761		383,971
PACCAR, Inc.		36,272		1,944,542
Pall Corp.		11,392		787,643
Pentair Ltd. - Reg’d		20,666		1,242,233
Precision Castparts Corp.		14,905		3,148,532
Quanta Services, Inc. *		21,228		554,900
Roper Industries, Inc.		10,143		1,254,689
Sensata Technologies Holding N.V. *		12,989		484,230
SPX Corp.		4,787		354,429
Stanley Black & Decker, Inc.		16,445		1,402,101
Textron, Inc.		28,949		779,886
The Boeing Co.		69,738		7,247,173
TransDigm Group, Inc.		4,687		642,119
United Rentals, Inc. *		9,495		520,041
Valmont Industries, Inc.		2,353		317,561
W.W. Grainger, Inc.		6,092		1,506,856
WABCO Holdings, Inc. *		6,454		503,347
Wabtec Corp.		9,738		569,868

				58,011,569

Commercial & Professional Services 0.8%
Copart, Inc. *		10,671		339,018
Equifax, Inc.		12,247		723,675
IHS, Inc., Class A *		5,183		555,358
Nielsen Holdings N.V. (a)		21,270		733,815
Robert Half International, Inc.		14,009		494,097
Rollins, Inc.		6,755		167,186
Stericycle, Inc. *		8,839		994,918
The Dun & Bradstreet Corp.		4,199		417,716
Towers Watson & Co., Class A		5,699		468,743
Verisk Analytics, Inc., Class A *		14,853		923,560
Waste Connections, Inc.		12,980		549,833

				6,367,919

Consumer Durables & Apparel 1.9%
Carter’s, Inc.		5,205		383,296
Coach, Inc.		29,424		1,553,882
D.R. Horton, Inc.		28,686		512,045
Fossil Group, Inc. *		5,467		634,937
Jarden Corp. *		10,815		464,504
Michael Kors Holdings Ltd. *		18,096		1,340,733
Mohawk Industries, Inc. *		6,190		727,263
NIKE, Inc., Class B		74,115		4,655,904
NVR, Inc. *		474		405,654
PulteGroup, Inc.		34,929		537,557
PVH Corp.		8,252		1,062,445
Ralph Lauren Corp.		6,175		1,021,407
Toll Brothers, Inc. *		14,822		453,702
Under Armour, Inc., Class A *		7,783		565,357
VF Corp.		8,878		1,662,050

				15,980,736

58 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Consumer Services 2.0%
Burger King Worldwide, Inc.		6,482		126,788
Chipotle Mexican Grill, Inc. *		3,141		1,282,062
Dunkin’ Brands Group, Inc.		7,636		329,035
Hyatt Hotels Corp., Class A *		5,997		260,270
Las Vegas Sands Corp.		36,402		2,051,253
Marriott International, Inc., Class A		24,304		971,917
Panera Bread Co., Class A *		2,803		459,748
Penn National Gaming, Inc. *		7,106		373,704
Starbucks Corp.		76,601		5,401,902
Starwood Hotels & Resorts Worldwide, Inc.		19,868		1,270,360
Wynn Resorts Ltd.		8,154		1,150,040
Yum! Brands, Inc.		45,883		3,212,728

				16,889,807

Diversified Financials 6.0%
Affiliated Managers Group, Inc. *		5,617		979,155
American Express Co.		97,645		7,021,652
Berkshire Hathaway, Inc., Class B *		186,907		20,787,797
BlackRock, Inc.		12,739		3,316,217
Discover Financial Services		50,297		2,376,533
Franklin Resources, Inc.		42,408		1,957,553
IntercontinentalExchange, Inc. *		7,402		1,330,510
McGraw Hill Financial, Inc.		28,336		1,653,972
Moody’s Corp.		19,873		1,263,128
MSCI, Inc. *		11,796		442,468
SEI Investments Co.		13,837		411,789
State Street Corp.		46,528		3,104,348
T. Rowe Price Group, Inc.		26,568		1,863,480
TD Ameritrade Holding Corp.		23,657		607,275
The Charles Schwab Corp. (b)		111,623		2,330,688

				49,446,565

Energy 8.9%
Anadarko Petroleum Corp.		51,129		4,674,213
Baker Hughes, Inc.		45,377		2,109,577
Cabot Oil & Gas Corp.		43,160		1,688,851
Cameron International Corp. *		25,410		1,443,034
Cheniere Energy, Inc. *		24,837		695,188
Concho Resources, Inc. *		10,698		1,032,464
CONSOL Energy, Inc.		23,202		724,598
Continental Resources, Inc. *		5,735		529,111
Core Laboratories N.V.		4,661		706,188
CVR Energy, Inc.		1,468		62,860
Denbury Resources, Inc. *		38,335		662,812
Diamond Offshore Drilling, Inc.		7,206		461,400
Dresser-Rand Group, Inc. *		7,751		472,346
Ensco plc, Class A		23,889		1,327,273
EOG Resources, Inc.		28,111		4,414,833
EQT Corp.		15,387		1,318,974
FMC Technologies, Inc. *		24,408		1,309,001
Halliburton Co.		88,532		4,249,536
Helmerich & Payne, Inc.		10,625		669,800
Hess Corp.		30,547		2,286,443
HollyFrontier Corp.		20,913		930,210
Kinder Morgan, Inc.		64,183		2,434,461
Marathon Petroleum Corp.		33,175		2,405,519
National Oilwell Varco, Inc.		44,253		3,287,998
Noble Corp.		25,926		964,447
Noble Energy, Inc.		36,442		2,238,632
Oasis Petroleum, Inc. *		7,261		284,631
Occidental Petroleum Corp.		82,289		7,258,713
Oceaneering International, Inc.		11,025		855,320
Oil States International, Inc. *		5,634		502,666
Peabody Energy Corp.		28,222		485,418
Pioneer Natural Resources Co.		13,939		2,438,907
Range Resources Corp.		16,741		1,255,240
Rowan Cos. plc, Class A *		12,436		440,483
Schlumberger Ltd.		136,177		11,022,166
SM Energy Co.		6,910		472,091
Southwestern Energy Co. *		36,069		1,377,836
Superior Energy Services, Inc. *		16,458		404,209
Tesoro Corp.		13,583		626,040
Transocean Ltd.		36,926		1,666,470
Weatherford International Ltd. *		78,425		1,169,317
Whiting Petroleum Corp. *		12,198		615,633

				73,974,909

Food & Staples Retailing 3.7%
Costco Wholesale Corp.		44,516		4,980,005
CVS Caremark Corp.		125,101		7,262,113
Wal-Mart Stores, Inc.		167,403		12,217,071
Walgreen Co.		89,081		4,282,124
Whole Foods Market, Inc.		35,384		1,866,506

				30,607,819

Food, Beverage & Tobacco 2.5%
Brown-Forman Corp., Class B		15,563		1,042,565
Bunge Ltd.		14,950		1,132,911
Flowers Foods, Inc.		17,677		367,505
Green Mountain Coffee Roasters, Inc. *		12,587		1,086,384
Lorillard, Inc.		38,325		1,621,147
Mead Johnson Nutrition Co.		20,761		1,557,698
Monster Beverage Corp. *		14,776		847,995
PepsiCo, Inc.		158,378		12,627,478

				20,283,683

Health Care Equipment & Services 6.2%
Aetna, Inc.		38,671		2,451,355
AmerisourceBergen Corp.		23,620		1,344,450
Baxter International, Inc.		55,710		3,875,188
Becton Dickinson & Co.		19,889		1,936,791
C.R. Bard, Inc.		7,531		865,086
CareFusion Corp. *		22,732		814,942
Cerner Corp. *		30,758		1,416,713
Community Health Systems, Inc.		9,424		369,986
Covidien plc		48,090		2,856,546
DaVita HealthCare Partners, Inc. *		8,590		923,511
DENTSPLY International, Inc.		14,472		607,679
Edwards Lifesciences Corp. *		11,318		796,561
Express Scripts Holding Co. *		83,690		5,346,117
HCA Holdings, Inc.		25,311		966,627
Henry Schein, Inc. *		8,962		905,610
Hologic, Inc. *		27,354		583,734
IDEXX Laboratories, Inc. *		5,579		523,422
Intuitive Surgical, Inc. *		4,067		1,571,977

See financial notes 59

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Laboratory Corp. of America Holdings *		9,502		909,531
McKesson Corp.		23,144		2,809,913
MEDNAX, Inc. *		5,119		498,437
Medtronic, Inc.		103,405		5,351,209
Patterson Cos., Inc.		8,868		353,656
Quest Diagnostics, Inc.		16,197		949,468
ResMed, Inc. (a)		14,265		673,879
Sirona Dental Systems, Inc. *		6,235		403,841
Stryker Corp.		29,303		1,960,078
The Cooper Cos., Inc.		5,048		659,319
UnitedHealth Group, Inc.		104,215		7,476,384
Universal Health Services, Inc., Class B		8,965		607,379
Varian Medical Systems, Inc. *		11,095		781,643

				51,591,032

Household & Personal Products 1.1%
Church & Dwight Co., Inc.		14,115		837,725
Colgate-Palmolive Co.		89,912		5,194,216
Coty, Inc., Class A *		5,799		94,524
Energizer Holdings, Inc.		6,288		621,443
Herbalife Ltd. (a)		10,538		642,923
The Estee Lauder Cos., Inc., Class A		24,574		1,606,157

				8,996,988

Insurance 0.4%
Alleghany Corp. *		1,722		666,569
Erie Indemnity Co., Class A		2,597		191,555
Everest Re Group Ltd.		4,973		681,052
Markel Corp. *		1,313		670,549
PartnerRe Ltd.		6,027		525,253
RenaissanceRe Holdings Ltd.		4,424		386,658
White Mountains Insurance Group Ltd.		544		304,504

				3,426,140

Materials 3.7%
Airgas, Inc.		6,692		680,242
Ball Corp.		15,307		679,937
CF Industries Holdings, Inc.		6,042		1,150,034
Cliffs Natural Resources, Inc. (a)		15,002		313,092
Crown Holdings, Inc. *		14,655		636,906
Ecolab, Inc.		27,273		2,491,388
FMC Corp.		14,005		932,873
Freeport-McMoRan Copper & Gold, Inc.		106,046		3,204,710
LyondellBasell Industries N.V., Class A		39,045		2,739,007
Monsanto Co.		54,531		5,338,040
Newmont Mining Corp.		51,064		1,622,303
Nucor Corp.		32,655		1,485,476
Praxair, Inc.		30,172		3,542,193
Rock-Tenn Co., Class A		7,246		805,103
Royal Gold, Inc.		6,546		379,864
Sigma-Aldrich Corp.		12,317		1,015,783
The Mosaic Co.		28,448		1,184,859
The Sherwin-Williams Co.		9,014		1,554,014
W.R. Grace & Co. *		7,393		594,028

				30,349,852

Media 3.9%
AMC Networks, Inc., Class A *		5,970		370,021
Charter Communications, Inc., Class A *		6,780		823,228
Comcast Corp., Class A		269,058		11,324,651
DIRECTV *		57,059		3,319,693
Discovery Communications, Inc., class A *		24,793		1,921,705
DISH Network Corp., Class A		20,813		935,752
Liberty Global plc, Class A *		36,911		2,867,246
Liberty Media Corp. *		11,441		1,561,468
Scripps Networks Interactive, Inc., Class A		8,789		646,255
Sirius XM Radio, Inc.		322,082		1,153,054
The Madison Square Garden Co., Class A *		6,288		365,962
Time Warner Cable, Inc.		29,727		3,191,193
Viacom, Inc., Class B		45,586		3,626,822

				32,107,050

Pharmaceuticals, Biotechnology & Life Sciences 9.8%
Actavis, Inc. *		13,110		1,772,210
Agilent Technologies, Inc.		34,989		1,631,887
Alexion Pharmaceuticals, Inc. *		20,037		2,159,187
Allergan, Inc.		30,275		2,675,705
Amgen, Inc.		76,619		8,346,874
Biogen Idec, Inc. *		24,290		5,174,256
BioMarin Pharmaceutical, Inc. *		14,818		970,134
Celgene Corp. *		42,804		5,991,704
Covance, Inc. *		5,857		474,651
Endo Health Solutions, Inc. *		11,400		468,426
Forest Laboratories, Inc. *		23,907		1,016,765
Gilead Sciences, Inc. *		156,366		9,424,179
Illumina, Inc. *		12,592		980,161
Johnson & Johnson		287,678		24,858,256
Life Technologies Corp. *		17,667		1,314,601
Mallinckrodt plc *		6,000		261,900
Medivation, Inc. *		7,618		430,646
Mettler-Toledo International, Inc. *		3,080		678,308
Onyx Pharmaceuticals, Inc. *		7,335		906,459
Perrigo Co.		9,027		1,097,232
Pharmacyclics, Inc. *		5,429		605,334
Quintiles Transnational Holdings, Inc. *		2,385		103,175
Regeneron Pharmaceuticals, Inc. *		7,753		1,878,629
Seattle Genetics, Inc. *		10,616		450,118
Thermo Fisher Scientific, Inc.		36,698		3,259,883
Vertex Pharmaceuticals, Inc. *		23,831		1,790,900
Warner Chilcott plc, Class A		18,127		388,824
Waters Corp. *		8,822		872,055
Zoetis, Inc.		50,844		1,482,103

				81,464,562

Real Estate 2.9%
Alexandria Real Estate Equities, Inc.		6,807		419,788
American Campus Communities, Inc.		10,877		362,313
American Tower Corp.		40,613		2,822,197
AvalonBay Communities, Inc.		12,399		1,536,236
Boston Properties, Inc.		15,569		1,595,822

60 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
BRE Properties, Inc.		8,042		385,936
CBRE Group, Inc., Class A *		31,595		690,983
Corrections Corp. of America		11,475		377,986
Digital Realty Trust, Inc. (a)		12,958		720,465
Essex Property Trust, Inc.		3,862		553,463
Extra Space Storage, Inc.		10,564		435,554
Federal Realty Investment Trust		6,849		666,476
Host Hotels & Resorts, Inc.		78,064		1,329,430
Jones Lang LaSalle, Inc.		4,598		378,140
Public Storage		14,795		2,258,753
Realogy Holdings Corp. *		15,092		638,844
Simon Property Group, Inc.		31,729		4,620,694
SL Green Realty Corp.		9,317		812,349
Taubman Centers, Inc.		6,435		433,783
The Macerich Co.		14,031		789,665
Ventas, Inc.		29,956		1,865,061

				23,693,938

Retailing 5.8%
Advance Auto Parts, Inc.		7,613		609,573
Amazon.com, Inc. *		37,408		10,510,900
AutoZone, Inc. *		3,699		1,553,358
Bed Bath & Beyond, Inc. *		22,323		1,646,098
CarMax, Inc. *		22,841		1,086,318
Dick’s Sporting Goods, Inc.		9,965		462,476
Dollar General Corp. *		30,519		1,647,110
Dollar Tree, Inc. *		22,640		1,193,128
Family Dollar Stores, Inc.		9,629		685,489
J.C. Penney Co., Inc. *(a)		14,915		186,139
LKQ Corp. *		30,282		885,446
Lowe’s Cos., Inc.		109,590		5,021,414
Netflix, Inc. *		5,676		1,611,473
Nordstrom, Inc.		15,330		854,341
O’Reilly Automotive, Inc. *		11,400		1,398,894
PetSmart, Inc.		10,947		770,997
Priceline.com, Inc. *		5,313		4,986,410
Ross Stores, Inc.		22,375		1,504,942
Sally Beauty Holdings, Inc. *		15,615		408,020
Sears Holdings Corp. *(a)		3,840		169,882
Target Corp.		65,543		4,149,527
Tiffany & Co.		12,196		940,434
TJX Cos., Inc.		73,517		3,875,816
Tractor Supply Co.		7,115		870,663
Ulta Salon, Cosmetics & Fragrance, Inc. *		6,118		607,150
Urban Outfitters, Inc. *		11,394		477,750

				48,113,748

Semiconductors & Semiconductor Equipment 0.8%
Altera Corp.		32,828		1,154,561
Broadcom Corp., Class A		53,768		1,358,180
Cree, Inc. *		12,198		676,867
Marvell Technology Group Ltd.		43,763		529,970
NVIDIA Corp.		58,315		860,146
Skyworks Solutions, Inc. *		19,671		498,856
Xilinx, Inc.		26,869		1,166,652

				6,245,232

Software & Services 15.5%
Accenture plc, Class A		66,641		4,814,812
Activision Blizzard, Inc.		43,195		704,942
Adobe Systems, Inc. *		51,235		2,344,001
Akamai Technologies, Inc. *		18,160		834,997
Alliance Data Systems Corp. *		5,086		995,330
Amdocs Ltd.		16,432		605,684
ANSYS, Inc. *		9,390		788,572
Autodesk, Inc. *		22,904		841,722
Automatic Data Processing, Inc.		49,441		3,518,222
BMC Software, Inc. *		13,267		610,282
Citrix Systems, Inc. *		19,100		1,351,707
Cognizant Technology Solutions Corp., Class A *		31,014		2,273,326
Concur Technologies, Inc. *		4,719		461,141
eBay, Inc. *		119,329		5,965,257
Electronic Arts, Inc. *		30,792		820,299
Equinix, Inc. *		5,018		871,827
Facebook, Inc., Class A *		57,175		2,360,184
FactSet Research Systems, Inc. (a)		4,269		436,932
Fidelity National Information Services, Inc.		30,140		1,340,024
Fiserv, Inc. *		13,662		1,315,241
FleetCor Technologies, Inc. *		6,918		713,315
Fortinet, Inc. *		13,628		269,834
Gartner, Inc. *		9,767		566,193
Genpact Ltd.		13,975		269,019
Global Payments, Inc.		7,849		374,005
Google, Inc., Class A *		27,503		23,292,291
IAC/InterActiveCorp		7,811		383,442
Informatica Corp. *		11,313		404,666
Intuit, Inc.		28,607		1,817,403
Jack Henry & Associates, Inc.		8,845		441,365
LinkedIn Corp., Class A *		7,302		1,752,772
Mastercard, Inc., Class A		10,665		6,463,843
MICROS Systems, Inc. *		8,380		409,782
Microsoft Corp.		769,732		25,709,049
NetSuite, Inc. *		2,774		275,819
Nuance Communications, Inc. *		26,547		506,782
Oracle Corp.		376,363		11,990,925
Rackspace Hosting, Inc. *		11,111		497,995
Red Hat, Inc. *		19,231		971,550
Salesforce.com, Inc. *		55,372		2,720,426
ServiceNow, Inc. *		1,254		58,788
SolarWinds, Inc. *		6,335		230,911
Solera Holdings, Inc.		6,869		354,578
Symantec Corp.		70,827		1,813,879
Synopsys, Inc. *		15,573		564,677
Teradata Corp. *		16,987		994,759
TIBCO Software, Inc. *		16,140		363,796
Vantiv, Inc., Class A *		11,127		293,864
VeriFone Systems, Inc. *		11,286		223,689
Visa, Inc., Class A		51,759		9,027,805
VMware, Inc., Class A *		8,922		750,786
Workday, Inc., Class A *		2,333		169,212

				127,931,722

Technology Hardware & Equipment 11.5%
3D Systems Corp. *(a)		9,442		485,319
Amphenol Corp., Class A		16,399		1,242,552

See financial notes 61

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Apple, Inc.		96,033		46,772,873
Cisco Systems, Inc.		547,294		12,757,423
Corning, Inc.		151,522		2,127,369
Dell, Inc.		150,156		2,067,648
EMC Corp.		215,203		5,547,933
F5 Networks, Inc. *		8,055		671,626
FLIR Systems, Inc.		14,755		461,536
Hewlett-Packard Co.		197,051		4,402,119
JDS Uniphase Corp. *		24,244		311,051
Juniper Networks, Inc. *		51,496		973,274
National Instruments Corp.		9,743		270,368
NetApp, Inc.		37,807		1,570,503
Palo Alto Networks, Inc. *		3,370		161,827
QUALCOMM, Inc.		176,697		11,711,477
SanDisk Corp.		24,830		1,370,120
Trimble Navigation Ltd. *		25,502		643,926
Western Digital Corp.		21,810		1,352,220

				94,901,164

Telecommunication Services 0.5%
Crown Castle International Corp. *		30,137		2,092,111
Level 3 Communications, Inc. *		16,765		374,865
SBA Communications Corp., Class A *		12,992		974,400
T-Mobile US, Inc. *		16,568		386,863
tw telecom, Inc. *		15,605		446,615

				4,274,854

Transportation 3.3%
C.H. Robinson Worldwide, Inc.		16,512		939,037
CSX Corp.		104,960		2,583,066
Delta Air Lines, Inc.		86,011		1,696,997
Expeditors International of Washington, Inc.		21,171		858,696
FedEx Corp.		30,583		3,283,391
Genesee & Wyoming, Inc., Class A *		5,070		438,961
Hertz Global Holdings, Inc. *		40,861		981,890
J.B. Hunt Transport Services, Inc.		9,212		663,264
Kansas City Southern		11,320		1,193,354
Kirby Corp. *		5,757		463,035
Southwest Airlines Co.		72,802		932,594
Union Pacific Corp.		47,691		7,322,476
United Parcel Service, Inc., Class B		72,578		6,211,225

				27,567,986

Utilities 0.5%
AES Corp.		63,350		805,178
Calpine Corp. *		39,387		761,351
ITC Holdings Corp.		5,464		485,695
NRG Energy, Inc.		32,934		864,517
ONEOK, Inc.		21,008		1,080,652

				3,997,393

Total Common Stock
(Cost $684,426,677)				825,128,444




Other Investment Companies 0.2% of net assets

Equity Fund 0.1%
iShares Russell 1000 Growth ETF		13,000		976,690

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund 0.00% (c)		585,284		585,284

Total Other Investment Companies
(Cost $1,546,911)				1,561,974



End of Investments



Collateral Invested for Securities on Loan 0.4% of net assets


State Street Institutional U.S. Government Money Market Fund 0.00% (c)		2,908,780		2,908,780

Total Collateral Invested for Securities on Loan
(Cost $2,908,780)				2,908,780



End of Collateral Invested for Securities on Loan

At 08/31/13, the tax basis cost of the fund’s investments was $686,233,090 and the unrealized appreciation and depreciation were $152,246,575 and ($11,789,247), respectively, with a net unrealized appreciation of $140,457,328.


*		Non-income producing security.
(a)		All or a portion of this security is on loan. Securities on loan were valued at $4,083,471.
(b)		Issuer is affiliated with the fund’s adviser.
(c)		The rate shown is the 7-day yield.


ETF —		Exchange Traded Fund
Reg’d —		Registered

62 See financial notes

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, 2013 (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		$825,128,444		$—		$—		$825,128,444
Other Investment Companies¹		1,561,974		—		—		1,561,974

Total		$826,690,418		$—		$—		$826,690,418

Other Financial Instruments
Collateral Invested for Securities on Loan		$2,908,780		$—		$—		$2,908,780


¹		As categorized in Portfolio Holdings.

See financial notes 63

Schwab U.S. Large-Cap Growth ETF

Statement of

Assets and Liabilities

As of August 31, 2013



Assets

Investments in affiliated issuers, at value (cost $1,844,951)		$2,330,688
Investments in unaffiliated issuers, at value (cost $684,128,637) including securities on loan of $4,083,471	+	824,359,730

Total investments, at value (cost $685,973,588)		826,690,418
Collateral invested for securities on loan		2,908,780
Receivables:
Investments sold		316,728
Fund shares sold		3,959,870
Dividends		1,165,965
Income from securities on loan		5,020
Foreign tax reclaims	+	4,096

Total assets		835,050,877

Liabilities

Collateral held for securities on loan		2,908,780
Payables:
Investments bought		4,524,461
Investment adviser fees	+	4,735

Total liabilities		7,437,976

Net Assets

Total assets		835,050,877
Total liabilities	−	7,437,976

Net assets		$827,612,901

Net Assets by Source
Capital received from investors		694,079,961
Net investment income not yet distributed		2,061,801
Net realized capital losses		(9,245,691	)
Net unrealized capital gains		140,716,830

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$827,612,901

20,900,000

$39.60

64 See financial notes

Schwab U.S. Large-Cap Growth ETF

Statement of

Operations

For the period September 1, 2012 through August 31, 2013



Investment Income

Dividends received from affiliated issuer		$22,671
Dividends received from unaffiliated issuers (net of foreign withholding tax of $20,951)		10,064,120
Interest		133
Securities on loan	+	39,243

Total investment income		10,126,167

Expenses

Investment adviser fees		451,754

Total expenses	−	451,754

Net investment income		9,674,413

Realized and Unrealized Gains (Losses)

Net realized gains on affiliated issuer		7,651
Net realized losses on unaffiliated investments		(5,552,759	)
Net realized gains on in-kind redemptions	+	5,917,362

Net realized gains		372,254
Net unrealized gains on affiliated issuer		674,368
Net unrealized gains on unaffiliated investments	+	90,443,844

Net unrealized gains	+	91,118,212

Net realized and unrealized gains		91,490,466

Net increase in net assets resulting from operations		$101,164,879

See financial notes 65

Schwab U.S. Large-Cap Growth ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/12-8/31/13				9/1/11-8/31/12
Net investment income		$9,674,413			$4,505,804
Net realized gains		372,254			8,926,873
Net unrealized gains	+	91,118,212			43,484,128

Net increase in net assets resulting from operations		101,164,879			56,916,805

Distributions to Shareholders

Distributions from net investment income		($8,617,825	)		($4,082,865	)

Transactions in Fund Shares

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

7,700,000

$287,234,792

5,050,000

$161,486,599

Shares redeemed

(750,000

)

(27,230,664

)

(1,600,001

)

(48,413,567

)

Net transactions in fund shares

6,950,000

$260,004,128

3,449,999

$113,073,032

Shares Outstanding and Net Assets

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

13,950,000

$475,061,719

10,500,001

$309,154,747

Total increase

6,950,000

352,551,182

3,449,999

165,906,972

End of period

20,900,000

$827,612,901

13,950,000

$475,061,719

Net investment income not yet distributed

$2,061,801

$1,082,121

66 See financial notes

Schwab U.S. Large-Cap Value ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			9/1/10–			12/9/09¹–
	8/31/13			8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		31.24			27.34			24.36			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.93			0.82			0.70			0.47
Net realized and unrealized gains (losses)		5.24			3.89			2.99			(0.78	)

Total from investment operations		6.17			4.71			3.69			(0.31	)
Less distributions:
Distributions from net investment income		(0.92	)		(0.81	)		(0.71	)		(0.33	)

Net asset value at end of period		36.49			31.24			27.34			24.36

Total return (%)		20.06			17.53			15.12			(1.29	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.07			0.13			0.13			0.14	^3,4
Gross operating expenses		0.07			0.13			0.13			0.14	³
Net investment income (loss)		2.73			2.89			2.68			2.98	³
Portfolio turnover rate⁵		9			8			7			5	²
Net assets, end of period ($ x 1,000)		700,693			385,791			241,994			84,052

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Effective June 14, 2010, the annual operating expense ratio was reduced. The ratio presented for period ended 8/31/10 is a blended ratio.

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

See financial notes 67

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings as of August 31, 2013

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


				Cost		Value
Holdings by Category				($)		($)

	99	.6%	Common Stock		614,434,757		697,927,846
	0	.2%	Other Investment Companies		1,563,643		1,565,314


	99	.8%	Total Investments		615,998,400		699,493,160
	0	.1%	Collateral Invested for Securities on Loan		910,622		910,622
	0	.1%	Other Assets and Liabilities, Net				289,237


	100	.0%	Net Assets				700,693,019


	Number		Value
Security	of Shares		($)

Common Stock 99.6% of net assets

Automobiles & Components 1.7%
Delphi Automotive plc		25,398		1,397,398
Ford Motor Co.		343,953		5,568,599
General Motors Co. *		67,971		2,316,452
Harley-Davidson, Inc.		19,557		1,173,029
Lear Corp.		8,023		551,581
TRW Automotive Holdings Corp. *		10,530		727,307

				11,734,366

Banks 5.4%
BB&T Corp.		61,142		2,076,382
BOK Financial Corp.		2,499		160,161
Comerica, Inc.		16,175		660,587
Cullen/Frost Bankers, Inc. (a)		5,226		370,210
Fifth Third Bancorp		77,004		1,408,403
First Republic Bank		5,892		260,898
Hudson City Bancorp, Inc.		41,270		379,271
Huntington Bancshares, Inc.		74,760		616,022
KeyCorp		79,344		925,945
M&T Bank Corp.		10,631		1,204,918
New York Community Bancorp, Inc.		38,476		563,673
Ocwen Financial Corp. *		10,044		506,619
People’s United Financial, Inc.		29,073		413,418
Regions Financial Corp.		122,500		1,151,500
The PNC Financial Services Group, Inc.		46,290		3,345,378
U.S. Bancorp		162,215		5,860,828
Wells Fargo & Co.		431,485		17,725,404
Zions Bancorp		15,971		446,709

				38,076,326

Capital Goods 8.8%
3M Co.		55,508		6,304,599
Carlisle Cos., Inc.		5,471		364,369
Eaton Corp. plc		41,397		2,621,258
General Dynamics Corp.		28,920		2,407,590
General Electric Co.		905,560		20,954,658
Honeywell International, Inc.		68,950		5,486,351
Hubbell, Inc., Class B		4,547		460,884
IDEX Corp.		7,096		421,290
Ingersoll-Rand plc		24,251		1,434,204
L-3 Communications Holdings, Inc.		7,967		719,659
Lockheed Martin Corp.		23,465		2,872,585
Masco Corp.		31,410		594,277
Northrop Grumman Corp.		20,505		1,891,996
Oshkosh Corp. *		7,507		337,214
Owens Corning *		10,220		382,637
Parker Hannifin Corp.		13,105		1,309,845
Raytheon Co.		28,489		2,148,355
Rockwell Automation, Inc.		12,469		1,212,361
Rockwell Collins, Inc.		11,762		832,397
Snap-On, Inc.		5,047		472,399
Terex Corp. *		9,505		275,645
Timken Co.		7,382		413,835
United Technologies Corp.		74,128		7,420,213
Xylem, Inc.		16,133		399,776

				61,738,397

Commercial & Professional Services 0.8%
Cintas Corp.		8,927		426,354
Iron Mountain, Inc.		15,238		393,140
Manpowergroup, Inc.		6,669		432,485
Republic Services, Inc.		25,630		833,231
The ADT Corp. *		18,878		751,911
Tyco International Ltd.		40,950		1,352,988
Waste Management, Inc.		38,535		1,558,355

				5,748,464

Consumer Durables & Apparel 0.8%
Garmin Ltd.		9,070		369,784
Hanesbrands, Inc.		8,922		530,681
Hasbro, Inc.		9,748		444,314
Leggett & Platt, Inc.		12,523		362,165
Lennar Corp., Class A		14,383		457,523
Mattel, Inc.		30,373		1,230,106
Newell Rubbermaid, Inc.		25,278		639,533
Polaris Industries, Inc.		5,708		623,371
Tupperware Brands Corp.		4,392		354,742
Whirlpool Corp.		6,978		897,720

				5,909,939

Consumer Services 1.9%
Carnival Corp.		39,096		1,410,975
Darden Restaurants, Inc.		10,995		508,079
H&R Block, Inc.		23,247		648,824
International Game Technology		23,345		440,987
McDonald’s Corp.		87,584		8,264,426
MGM Resorts International *		33,607		594,508
Norwegian Cruise Line Holdings Ltd. *		4,190		130,267

68 See financial notes

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Royal Caribbean Cruises Ltd.		12,627		463,285
Wyndham Worldwide Corp.		12,137		720,452

				13,181,803

Diversified Financials 9.7%
Ameriprise Financial, Inc.		17,551		1,512,019
Bank of America Corp.		943,912		13,328,038
Capital One Financial Corp.		50,888		3,284,820
Citigroup, Inc.		266,433		12,876,707
CME Group, Inc.		26,831		1,907,952
Eaton Vance Corp.		10,948		422,045
ING US, Inc.		5,602		161,338
Invesco Ltd.		38,819		1,178,545
JPMorgan Chase & Co.		331,123		16,731,645
Legg Mason, Inc.		9,270		301,460
Leucadia National Corp.		26,205		653,291
LPL Financial Holdings, Inc.		3,755		138,109
Morgan Stanley		119,561		3,079,891
Northern Trust Corp.		19,277		1,057,729
NYSE Euronext		21,424		895,523
Raymond James Financial, Inc.		9,819		410,729
SLM Corp.		38,683		928,005
The Bank of New York Mellon Corp.		101,529		3,019,473
The Goldman Sachs Group, Inc.		37,854		5,758,729
The NASDAQ OMX Group, Inc.		10,241		305,796

				67,951,844

Energy 11.7%
Apache Corp.		34,117		2,923,145
Chesapeake Energy Corp.		45,174		1,165,941
Chevron Corp.		169,809		20,450,098
Cimarex Energy Co.		7,443		623,798
Cobalt International Energy, Inc. *		24,138		588,967
ConocoPhillips		107,154		7,104,310
Devon Energy Corp.		33,102		1,889,793
Exxon Mobil Corp.		389,404		33,940,453
Marathon Oil Corp.		61,897		2,131,114
Murphy Oil Corp.		15,969		1,076,630
Nabors Industries Ltd.		26,458		407,453
Newfield Exploration Co. *		11,672		278,027
Phillips 66		54,550		3,114,805
QEP Resources, Inc.		15,448		422,039
Spectra Energy Corp.		58,483		1,936,372
The Williams Cos., Inc.		59,635		2,161,172
Valero Energy Corp.		48,194		1,712,333

				81,926,450

Food & Staples Retailing 0.6%
Safeway, Inc.		21,044		545,040
Sprouts Farmers Market, Inc. *		1,628		60,171
Sysco Corp.		51,698		1,655,370
The Kroger Co.		45,612		1,669,399

				3,929,980

Food, Beverage & Tobacco 8.1%
Altria Group, Inc.		176,442		5,977,855
Archer-Daniels-Midland Co.		57,684		2,031,054
Beam, Inc.		14,163		887,312
Campbell Soup Co.		15,387		664,411
Coca-Cola Enterprises, Inc.		22,104		826,690
ConAgra Foods, Inc.		36,547		1,236,019
Constellation Brands, Inc., Class A *		13,622		738,993
Dr. Pepper Snapple Group, Inc.		18,054		808,097
General Mills, Inc.		56,303		2,776,864
Hillshire Brands Co.		10,381		335,410
Hormel Foods Corp.		11,730		485,974
Ingredion, Inc.		6,964		438,314
Kellogg Co.		22,095		1,341,387
Kraft Foods Group, Inc.		51,775		2,680,392
McCormick & Co., Inc. Non Voting Shares		11,524		779,599
Molson Coors Brewing Co., Class B		14,026		684,328
Mondelez International, Inc., Class A		155,642		4,773,540
Philip Morris International, Inc.		143,284		11,955,617
Reynolds American, Inc.		28,222		1,344,214
The Coca-Cola Co.		335,418		12,806,259
The Hershey Co.		13,174		1,211,349
The J.M. Smucker Co.		9,491		1,007,375
Tyson Foods, Inc., Class A		24,626		712,923

				56,503,976

Health Care Equipment & Services 2.3%
Abbott Laboratories		136,441		4,547,579
Boston Scientific Corp. *		117,387		1,241,954
Cardinal Health, Inc.		29,882		1,502,467
Cigna Corp.		24,839		1,954,581
Humana, Inc.		13,701		1,261,588
Omnicare, Inc.		9,013		490,037
St. Jude Medical, Inc.		24,912		1,255,814
Tenet Healthcare Corp. *		8,990		351,060
WellPoint, Inc.		26,766		2,278,857
Zimmer Holdings, Inc.		14,658		1,159,301

				16,043,238

Household & Personal Products 3.4%
Avon Products, Inc.		38,089		753,020
Kimberly-Clark Corp.		33,507		3,132,234
The Clorox Co.		11,548		955,020
The Procter & Gamble Co.		240,035		18,696,326

				23,536,600

Insurance 6.0%
ACE Ltd.		29,638		2,599,845
Aflac, Inc.		40,870		2,361,877
American Financial Group, Inc.		6,916		356,381
American International Group, Inc. *		129,758		6,028,557
Aon plc		26,975		1,790,601
Arch Capital Group Ltd. *		11,801		629,111
Arthur J. Gallagher & Co.		11,013		455,277
Axis Capital Holdings Ltd.		10,128		435,403
Brown & Brown, Inc.		10,413		324,261
Cincinnati Financial Corp.		12,825		585,846
CNA Financial Corp.		2,737		96,561
Fidelity National Financial, Inc., Class A		18,598		440,959
Genworth Financial, Inc., Class A *		44,147		520,935
Hartford Financial Services Group, Inc.		39,714		1,175,534
HCC Insurance Holdings, Inc.		9,302		392,544

See financial notes 69

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings continued


		Number		Value
Security		of Shares		($)
Lincoln National Corp.			23,891		1,004,378
Loews Corp.			26,753		1,189,438
Marsh & McLennan Cos., Inc.			48,023		1,979,988
MetLife, Inc.			95,670		4,418,997
Principal Financial Group, Inc.			23,757		972,136
Prudential Financial, Inc.			40,986		3,069,032
Reinsurance Group of America, Inc.			6,210		402,470
The Allstate Corp.			40,829		1,956,526
The Chubb Corp.			22,557		1,876,066
The Progressive Corp.			48,980		1,227,929
The Travelers Cos., Inc.			32,789		2,619,841
Torchmark Corp.			7,888		543,404
Unum Group			24,028		709,547
Validus Holdings Ltd.			8,303		287,367
W.R. Berkley Corp.			9,287		381,881
Willis Group Holdings plc			15,141		625,021
XL Group plc			24,810		733,384

					42,191,097

Materials 3.5%
Air Products & Chemicals, Inc.			18,145		1,853,330
Albemarle Corp.			7,706		480,623
Alcoa, Inc.			95,504		735,381
Ashland, Inc.			6,580		573,842
Avery Dennison Corp.			8,490		363,032
Axiall Corp.			6,462		258,674
Bemis Co., Inc.			8,926		355,166
Celanese Corp., Series A			13,531		666,266
E.I. du Pont de Nemours & Co.			80,186		4,540,131
Eastman Chemical Co.			13,623		1,035,348
Huntsman Corp.			15,866		277,655
International Flavors & Fragrances, Inc.			7,339		579,854
International Paper Co.			38,735		1,828,679
Martin Marietta Materials, Inc.			3,980		382,279
MeadWestvaco Corp.			15,394		551,875
Owens-Illinois, Inc. *			14,360		407,680
Packaging Corp. of America			8,495		450,575
PPG Industries, Inc.			12,418		1,939,816
Reliance Steel & Aluminum Co.			6,927		461,962
Rockwood Holdings, Inc.			6,751		431,119
RPM International, Inc.			12,068		410,071
Sealed Air Corp.			17,095		485,498
The Dow Chemical Co.			105,524		3,946,598
The Valspar Corp.			6,847		425,610
Valhi, Inc.			1,752		34,549
Vulcan Materials Co.			11,986		572,931
Westlake Chemical Corp.			1,857		187,891

					24,236,435

Media 3.7%
Cablevision Systems Corp., Class A			19,040		337,579
CBS Corp., Class B Non Voting Shares			49,712		2,540,283
Gannett Co., Inc.			20,655		497,579
Lamar Advertising Co., Class A *			5,247		220,741
News Corp., Class A *			43,510		683,107
Omnicom Group, Inc.			22,610		1,371,297
The Interpublic Group of Cos., Inc.			37,329		586,812
The Walt Disney Co.			157,821		9,600,251
Time Warner, Inc.			81,436		4,929,321
Twenty-First Century Fox, Inc.			174,075		5,453,770

					26,220,740

Pharmaceuticals, Biotechnology & Life Sciences 6.8%
AbbVie, Inc.			138,819		5,915,078
Bristol-Myers Squibb Co.			144,072		6,006,362
Eli Lilly & Co.			86,362		4,439,007
Hospira, Inc. *			14,306		558,363
Merck & Co., Inc.			264,484		12,507,448
Mylan, Inc. *			33,194		1,173,076
PerkinElmer, Inc.			10,028		360,707
Pfizer, Inc.			584,835		16,498,195

					47,458,236

Real Estate 2.7%
American Capital Agency Corp.			34,765		791,251
Annaly Capital Management, Inc.			82,561		963,487
Apartment Investment & Management Co., Class A			12,556		345,667
Camden Property Trust			7,331		452,982
CBL & Associates Properties, Inc.			14,895		285,984
DDR Corp.			21,223		329,381
Duke Realty Corp.			27,825		405,967
Equity Residential			28,126		1,459,458
General Growth Properties, Inc.			39,079		749,535
HCP, Inc.			39,602		1,612,989
Health Care REIT, Inc.			24,769		1,521,807
Kilroy Realty Corp.			6,822		332,845
Kimco Realty Corp.			35,034		701,731
Liberty Property Trust			12,376		428,210
National Retail Properties, Inc.			10,600		324,678
Plum Creek Timber Co., Inc.			13,887		615,333
Prologis, Inc.			43,448		1,531,108
Rayonier, Inc.			11,266		622,334
Realty Income Corp.			17,226		680,427
Regency Centers Corp.			8,454		401,988
Senior Housing Properties Trust			16,258		369,870
Two Harbors Investment Corp.			32,207		306,289
UDR, Inc.			23,200		524,088
Vornado Realty Trust			14,846		1,206,980
Weingarten Realty Investors			9,668		277,568
Weyerhaeuser Co.	��		50,375		1,379,267
WP Carey, Inc.			4,872		320,237

					18,941,461

Retailing 3.0%
Abercrombie & Fitch Co., Class A			6,973		246,217
American Eagle Outfitters, Inc.			14,711		212,868
AutoNation, Inc. *			3,783		176,817
Best Buy Co., Inc.			23,494		845,784
CST Brands, Inc. *			5,277		155,672
Dillard’s, Inc., Class A			2,796		213,223
Expedia, Inc.			8,190		382,964
Foot Locker, Inc.			13,086		421,369
Genuine Parts Co.			13,702		1,055,191
Kohl’s Corp.			17,748		910,650
L Brands, Inc.			21,281		1,220,678
Liberty Interactive Corp., Class A *			43,871		990,607

70 See financial notes

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Macy’s, Inc.		33,432		1,485,384
Signet Jewelers Ltd.		7,058		468,651
Staples, Inc.		57,044		793,482
The Gap, Inc.		25,241		1,020,746
The Home Depot, Inc.		128,014		9,535,763
TripAdvisor, Inc. *		9,645		713,441
Williams-Sonoma, Inc.		7,475		421,665

				21,271,172

Semiconductors & Semiconductor Equipment 3.2%
Analog Devices, Inc.		27,145		1,256,270
Applied Materials, Inc.		105,299		1,580,538
Avago Technologies Ltd.		18,882		727,146
Freescale Semiconductor Ltd. *		4,412		63,180
Intel Corp.		435,750		9,577,785
KLA-Tencor Corp.		14,355		791,678
Lam Research Corp. *		14,467		675,175
Linear Technology Corp.		20,939		802,592
LSI Corp. *		47,727		353,657
Maxim Integrated Products, Inc.		25,070		698,074
Microchip Technology, Inc.		16,990		659,382
Micron Technology, Inc. *		90,340		1,225,914
ON Semiconductor Corp. *		37,400		270,776
Texas Instruments, Inc.		96,796		3,697,607

				22,379,774

Software & Services 3.4%
CA, Inc.		29,605		865,946
Cadence Design Systems, Inc. *		25,835		347,997
Computer Sciences Corp.		12,808		642,321
International Business Machines Corp.		91,306		16,642,345
Paychex, Inc.		28,431		1,099,711
SAIC, Inc.		23,505		354,220
The Western Union Co.		47,954		840,634
Total System Services, Inc.		14,277		395,045
VeriSign, Inc. *		13,216		634,236
Yahoo! Inc. *		83,020		2,251,502

				24,073,957

Technology Hardware & Equipment 1.1%
Arrow Electronics, Inc. *		9,124		423,536
Avnet, Inc. *		11,471		442,322
Harris Corp.		9,519		539,061
Jabil Circuit, Inc.		17,045		388,967
Molex, Inc.		12,510		363,040
Motorola Solutions, Inc.		23,509		1,316,739
NCR Corp. *		14,679		522,279
Seagate Technology plc		28,154		1,078,861
TE Connectivity Ltd.		36,194		1,773,506
Xerox Corp.		108,369		1,081,523

				7,929,834

Telecommunication Services 4.4%
AT&T, Inc.		471,468		15,949,762
CenturyLink, Inc.		53,069		1,757,645
Frontier Communications Corp. (a)		83,262		360,525
Sprint Corp. *		74,766		501,680
Verizon Communications, Inc.		250,639		11,875,276
Windstream Corp. (a)		53,969		435,530

				30,880,418

Transportation 0.4%
Norfolk Southern Corp.		27,465		1,981,874
United Continental Holdings, Inc. *		31,188		887,611

				2,869,485

Utilities 6.2%
AGL Resources, Inc.		10,589		465,387
Alliant Energy Corp.		9,667		479,580
Ameren Corp.		21,013		710,450
American Electric Power Co., Inc.		42,347		1,812,452
American Water Works Co., Inc.		15,556		633,751
Aqua America, Inc.		12,959		393,565
CenterPoint Energy, Inc.		38,046		872,395
CMS Energy Corp.		24,043		637,861
Consolidated Edison, Inc.		25,750		1,447,922
Dominion Resources, Inc.		50,340		2,937,339
DTE Energy Co.		15,282		1,021,907
Duke Energy Corp.		61,699		4,047,454
Edison International		28,645		1,314,519
Entergy Corp.		15,708		993,217
Exelon Corp.		74,578		2,273,883
FirstEnergy Corp.		36,770		1,377,772
Integrys Energy Group, Inc.		7,169		400,890
MDU Resources Group, Inc.		16,935		452,165
National Fuel Gas Co.		7,019		458,200
NextEra Energy, Inc.		37,173		2,987,222
NiSource, Inc.		27,754		812,082
Northeast Utilities		28,203		1,155,477
NV Energy, Inc.		20,011		469,258
OGE Energy Corp.		17,764		625,470
Pepco Holdings, Inc.		21,585		408,820
PG&E Corp.		38,523		1,593,311
Pinnacle West Capital Corp.		9,276		503,409
PPL Corp.		55,680		1,709,376
Public Service Enterprise Group, Inc.		44,472		1,441,782
Questar Corp.		14,874		326,038
SCANA Corp.		12,088		581,675
Sempra Energy		19,604		1,654,970
TECO Energy, Inc.		17,559		290,250
The Southern Co.		76,136		3,168,780
UGI Corp.		9,486		371,851
Westar Energy, Inc.		10,530		327,588
Wisconsin Energy Corp.		20,144		826,710
Xcel Energy, Inc.		43,305		1,209,076

				43,193,854

Total Common Stock
(Cost $614,434,757)				697,927,846




Other Investment Companies 0.2% of net assets

Equity Fund 0.1%
iShares Russell 1000 Value ETF		14,000		1,182,580

See financial notes 71

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund 0.00% (b)		382,734		382,734

Total Other Investment Companies
(Cost $1,563,643)				1,565,314



End of Investments



Collateral Invested for Securities on Loan 0.1% of net assets


State Street Institutional U.S. Government Money Market Fund 0.00% (b)		910,622		910,622

Total Collateral Invested for Securities on Loan
(Cost $910,622)				910,622



End of Collateral Invested for Securities on Loan

At 08/31/13, the tax basis cost of the fund’s investments was $616,542,131 and the unrealized appreciation and depreciation were $88,084,933 and ($5,133,904), respectively, with a net unrealized appreciation $82,951,029.


*		Non-income producing security.
(a)		All or a portion of this security is on loan. Securities on loan were valued at $873,252.
(b)		The rate shown is the 7-day yield.


ETF —		Exchange Traded Fund
REIT —		Real Estate Investment Trust

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2013 (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		$697,927,846		$—		$—		$697,927,846
Other Investment Companies¹		1,565,314		—		—		1,565,314

Total		$699,493,160		$—		$—		$699,493,160

Other Financial Instruments
Collateral Invested for Securities on Loan		$910,622		$—		$—		$910,622


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	2012		(Losses)			(Losses)		Purchases		Sales			in		out		2013

Rights		$—		($129	)		$4,146		$2,764		($6,781	)		$—		$—		$—

Total		$—		($129	)		$4,146		$2,764		($6,781	)		$—		$—		$—

72 See financial notes

Schwab U.S. Large-Cap Value ETF

Statement of

Assets and Liabilities

As of August 31, 2013



Assets

Investments, at value (cost $615,998,400) including securities on loan of $873,252		$699,493,160
Collateral invested for securities on loan		910,622
Receivables:
Dividends		1,965,759
Income from securities on loan	+	936

Total assets		702,370,477

Liabilities

Collateral held for securities on loan		910,622
Payables:
Investments bought		762,851
Investment adviser fees	+	3,985

Total liabilities		1,677,458

Net Assets

Total assets		702,370,477
Total liabilities	−	1,677,458

Net assets		$700,693,019

Net Assets by Source
Capital received from investors		617,086,628
Net investment income not yet distributed		2,758,069
Net realized capital losses		(2,646,438	)
Net unrealized capital gains		83,494,760

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$700,693,019

19,200,000

$36.49

See financial notes 73

Schwab U.S. Large-Cap Value ETF

Statement of

Operations

For the period September 1, 2012 through August 31, 2013



Investment Income

Dividends		$14,756,624
Interest		147
Securities on loan	+	19,464

Total investment income		14,776,235

Expenses

Investment adviser fees		381,550

Total expenses	−	381,550

Net investment income		14,394,685

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(596,696	)
Net realized gains on in-kind redemptions	+	16,945,870

Net realized gains		16,349,174
Net unrealized gains on investments	+	52,823,018

Net realized and unrealized gains		69,172,192

Net increase in net assets resulting from operations		$83,566,877

74 See financial notes

Schwab U.S. Large-Cap Value ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/12-8/31/13				9/1/11-8/31/12
Net investment income		$14,394,685			$8,587,933
Net realized gains		16,349,174			4,538,243
Net unrealized gains	+	52,823,018			32,475,452

Net increase in net assets resulting from operations		83,566,877			45,601,628

Distributions to Shareholders

Distributions from net investment income		($13,282,460	)		($7,983,125	)

Transactions in Fund Shares

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

9,400,000

$328,362,220

4,800,000

$143,142,091

Shares redeemed

(2,550,000

)

(83,744,269

)

(1,300,001

)

(36,963,776

)

Net transactions in fund shares

6,850,000

$244,617,951

3,499,999

$106,178,315

Shares Outstanding and Net Assets

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

12,350,000

$385,790,651

8,850,001

$241,993,833

Total increase

6,850,000

314,902,368

3,499,999

143,796,818

End of period

19,200,000

$700,693,019

12,350,000

$385,790,651

Net investment income not yet distributed

$2,758,069

$1,739,959

See financial notes 75

Schwab U.S. Mid-Cap ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			1/12/11¹–
	8/31/13			8/31/12			8/31/11


Per-Share Data ($)

Net asset value at beginning of period		26.56			23.75			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.51			0.37			0.18
Net realized and unrealized gains (losses)		6.40			2.77			(1.29	)

Total from investment operations		6.91			3.14			(1.11	)
Less distributions:
Distributions from net investment income		(0.53	)		(0.33	)		(0.14	)

Net asset value at end of period		32.94			26.56			23.75

Total return (%)		26.27			13.32			(4.49	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.07			0.13			0.13	³
Gross operating expenses		0.07			0.13			0.13	³
Net investment income (loss)		1.70			1.53			1.18	³
Portfolio turnover rate⁴		25			19			9	²
Net assets, end of period ($ x 1,000)		611,081			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.

76 See financial notes

Schwab U.S. Mid-Cap ETF

Portfolio Holdings as of August 31, 2013

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		549,296,637		610,190,297
	0	.1%	Other Investment Companies		348,920		350,750


	99	.9%	Total Investments		549,645,557		610,541,047
	1	.6%	Collateral Invested for Securities on Loan		9,782,107		9,782,107
	(1	.5)%	Other Assets and Liabilities, Net				(9,241,978	)


	100	.0%	Net Assets				611,081,176


	Number		Value
Security	of Shares		($)

Common Stock 99.8% of net assets

Automobiles & Components 1.9%
Allison Transmission Holdings, Inc.		14,483		326,012
Dana Holding Corp.		40,216		842,927
Gentex Corp.		39,463		889,102
Lear Corp.		25,043		1,721,706
Tesla Motors, Inc. *(a)		20,726		3,502,694
The Goodyear Tire & Rubber Co. *		65,080		1,309,410
TRW Automotive Holdings Corp. *		32,453		2,241,529
Visteon Corp. *		13,731		983,277

				11,816,657

Banks 4.0%
Associated Banc-Corp.		46,381		739,777
Bank of Hawaii Corp.		12,485		642,978
BankUnited, Inc.		14,509		428,741
BOK Financial Corp.		7,251		464,717
City National Corp.		13,047		854,187
Commerce Bancshares, Inc.		21,241		917,399
Cullen/Frost Bankers, Inc.		16,229		1,149,662
East West Bancorp, Inc.		37,230		1,088,233
First Horizon National Corp.		63,601		703,427
First Niagara Financial Group, Inc.		97,314		982,871
First Republic Bank		18,770		831,136
Fulton Financial Corp.		51,248		619,588
Hancock Holding Co.		23,383		751,763
Hudson City Bancorp, Inc.		131,217		1,205,884
Huntington Bancshares, Inc.		229,209		1,888,682
Nationstar Mortgage Holdings, Inc. *		4,624		229,813
New York Community Bancorp, Inc.		119,493		1,750,573
Ocwen Financial Corp. *		30,696		1,548,306
People’s United Financial, Inc.		86,323		1,227,513
Popular, Inc. *		27,975		868,904
Prosperity Bancshares, Inc.		12,364		739,367
Signature Bank *		12,707		1,114,658
SVB Financial Group *		12,064		998,899
TCF Financial Corp.		44,263		621,895
TFS Financial Corp. *		20,595		224,074
Valley National Bancorp (a)		54,966		554,607
Zions Bancorp		48,690		1,361,859

				24,509,513

Capital Goods 10.9%
A.O. Smith Corp.		21,165		889,988
Acuity Brands, Inc.		11,723		1,002,316
AECOM Technology Corp. *		28,857		840,604
AGCO Corp.		26,514		1,499,632
Air Lease Corp.		19,470		502,326
Armstrong World Industries, Inc. *		5,827		282,959
B/E Aerospace, Inc. *		27,860		1,899,773
Carlisle Cos., Inc.		16,871		1,123,609
Chicago Bridge & Iron Co. N.V.		28,667		1,715,147
CLARCOR, Inc.		13,636		730,344
Colfax Corp. *		22,349		1,164,159
Crane Co.		13,251		760,740
Donaldson Co., Inc.		36,148		1,273,855
EMCOR Group, Inc.		19,052		716,165
Fortune Brands Home & Security, Inc.		44,960		1,656,326
Foster Wheeler AG *		27,501		637,473
GATX Corp.		12,718		575,617
Generac Holdings, Inc.		18,581		735,622
Graco, Inc.		16,761		1,164,722
HD Supply Holdings, Inc. *		14,281		324,750
Hexcel Corp. *		27,221		968,251
Hubbell, Inc., Class B		14,285		1,447,928
IDEX Corp.		22,535		1,337,903
ITT Corp.		23,748		780,122
Jacobs Engineering Group, Inc. *		34,779		2,026,920
KBR, Inc.		39,505		1,179,619
Kennametal, Inc.		20,901		888,711
Lennox International, Inc.		12,424		852,908
Lincoln Electric Holdings, Inc.		22,669		1,417,493
Masco Corp.		96,983		1,834,918
MRC Global, Inc. *		27,944		733,530
MSC Industrial Direct Co., Inc., Class A		12,956		984,656
Nordson Corp.		15,028		1,001,616
Oshkosh Corp. *		24,145		1,084,593
Owens Corning *		31,724		1,187,747
Pall Corp.		30,141		2,083,949
Quanta Services, Inc. *		58,635		1,532,719
Regal-Beloit Corp.		12,392		789,370
Sensata Technologies Holding N.V. *		34,559		1,288,359
Snap-On, Inc.		16,071		1,504,246
Spirit AeroSystems Holdings, Inc., Class A *		30,470		688,013
SPX Corp.		12,378		916,467
Teledyne Technologies, Inc. *		10,117		780,729
Terex Corp. *		30,551		885,979
Textainer Group Holdings Ltd. (a)		4,524		157,707
The Babcock & Wilcox Co.		30,432		943,088
The Manitowoc Co., Inc.		36,069		720,659
The Middleby Corp. *		5,048		938,625
The Toro Co.		16,036		846,861

See financial notes 77

Schwab U.S. Mid-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Timken Co.		21,757		1,219,697
TransDigm Group, Inc.		12,365		1,694,005
Trinity Industries, Inc.		20,856		880,540
Triumph Group, Inc.		13,809		993,834
United Rentals, Inc. *		25,521		1,397,785
URS Corp.		21,237		1,051,656
USG Corp. *		24,305		567,279
Valmont Industries, Inc.		6,599		890,601
WABCO Holdings, Inc. *		17,350		1,353,126
Wabtec Corp.		26,102		1,527,489
Watsco, Inc.		8,017		719,927
WESCO International, Inc. *		12,004		885,535
Woodward, Inc.		15,720		606,163
Xylem, Inc.		51,338		1,272,156

				66,359,606

Commercial & Professional Services 2.5%
Cintas Corp.		28,954		1,382,843
Clean Harbors, Inc. *		14,567		827,843
Copart, Inc. *		29,216		928,192
Covanta Holding Corp.		34,293		724,611
Equifax, Inc.		32,125		1,898,266
Iron Mountain, Inc.		46,010		1,187,058
KAR Auction Services, Inc.		25,318		674,471
Manpowergroup, Inc.		20,893		1,354,911
Pitney Bowes, Inc. (a)		56,763		926,372
Robert Half International, Inc.		37,337		1,316,876
Rollins, Inc.		18,185		450,079
The Dun & Bradstreet Corp.		10,820		1,076,374
Towers Watson & Co., Class A		15,008		1,234,408
Waste Connections, Inc.		33,044		1,399,744

				15,382,048

Consumer Durables & Apparel 4.7%
Brunswick Corp.		24,521		891,584
Carter’s, Inc.		13,495		993,772
D.R. Horton, Inc.		76,860		1,371,951
Fossil Group, Inc. *		14,124		1,640,361
Hanesbrands, Inc.		26,548		1,579,075
Harman International Industries, Inc.		18,562		1,188,339
Hasbro, Inc.		31,621		1,441,285
Jarden Corp. *		26,904		1,155,527
Leggett & Platt, Inc.		39,084		1,130,309
Lennar Corp., Class A		44,943		1,429,637
Mohawk Industries, Inc. *		16,353		1,921,314
Newell Rubbermaid, Inc.		77,794		1,968,188
NVR, Inc. *		1,213		1,038,098
Polaris Industries, Inc.		16,969		1,853,185
PulteGroup, Inc.		93,542		1,439,611
PVH Corp.		21,999		2,832,371
Taylor Morrison Home Corp., Class A *		7,663		157,934
Tempur Sealy International, Inc. *		16,480		634,645
Toll Brothers, Inc. *		41,232		1,262,112
Tupperware Brands Corp.		14,310		1,155,819
Under Armour, Inc., Class A *		21,127		1,534,665

				28,619,782

Consumer Services 2.8%
Apollo Group, Inc., Class A *		27,630		513,089
Bally Technologies, Inc. *		10,554		761,260
Bloomin’ Brands, Inc. *		11,985		269,662
Brinker International, Inc.		18,592		743,494
Burger King Worldwide, Inc.		16,969		331,914
Choice Hotels International, Inc.		7,267		278,907
Darden Restaurants, Inc.		35,146		1,624,097
Domino’s Pizza, Inc.		15,247		936,776
Dunkin’ Brands Group, Inc.		20,405		879,251
H&R Block, Inc.		73,764		2,058,753
International Game Technology		70,580		1,333,256
MGM Resorts International *		99,939		1,767,921
Norwegian Cruise Line Holdings Ltd. *		12,530		389,558
Panera Bread Co., Class A *		7,573		1,242,123
Penn National Gaming, Inc. *		18,385		966,867
SeaWorld Entertainment, Inc.		7,074		211,725
Service Corp. International		58,285		1,053,793
Six Flags Entertainment Corp.		26,020		858,920
Sotheby’s		18,496		852,851
Weight Watchers International, Inc.		7,308		262,650

				17,336,867

Diversified Financials 2.4%
Affiliated Managers Group, Inc. *		14,053		2,449,719
CBOE Holdings, Inc.		23,132		1,061,527
Credit Acceptance Corp. *		3,213		345,558
ETRADE Financial Corp.		78,399		1,100,722
Eaton Vance Corp.		33,019		1,272,882
Federated Investors, Inc., Class B (a)		25,998		706,106
ING US, Inc.		17,662		508,666
Legg Mason, Inc.		30,637		996,315
LPL Financial Holdings, Inc.		9,782		359,782
MSCI, Inc. *		33,153		1,243,569
Raymond James Financial, Inc.		30,161		1,261,635
SEI Investments Co.		37,216		1,107,548
The NASDAQ OMX Group, Inc.		31,291		934,349
Waddell & Reed Financial, Inc., Class A		23,527		1,120,356

				14,468,734

Energy 6.3%
Atwood Oceanics, Inc. *		15,722		875,401
Berry Petroleum Co., Class A		12,401		510,301
Cheniere Energy, Inc. *		64,767		1,812,828
Cimarex Energy Co.		23,222		1,946,236
Core Laboratories N.V.		12,441		1,884,936
CVR Energy, Inc.		3,970		169,995
Dresser-Rand Group, Inc. *		20,682		1,260,361
Dril-Quip, Inc. *		9,925		1,012,449
Energen Corp.		19,895		1,319,237
Forum Energy Technologies, Inc. *		5,012		131,164
Gulfport Energy Corp. *		18,550		1,094,450
Helix Energy Solutions Group, Inc. *		26,744		669,402
Helmerich & Payne, Inc.		28,445		1,793,173
Kodiak Oil & Gas Corp. *		71,761		716,892
Laredo Petroleum Holdings, Inc. *		15,777		414,304
McDermott International, Inc. *		65,039		487,793

78 See financial notes

Schwab U.S. Mid-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Nabors Industries Ltd.		80,272		1,236,189
Newfield Exploration Co. *		37,068		882,960
Oasis Petroleum, Inc. *		19,558		766,674
Oceaneering International, Inc.		29,407		2,281,395
Oil States International, Inc. *		14,602		1,302,790
Patterson-UTI Energy, Inc.		40,308		789,634
QEP Resources, Inc.		47,933		1,309,530
Rosetta Resources, Inc. *		16,349		760,719
Rowan Cos. plc, Class A *		34,263		1,213,596
RPC, Inc. (a)		17,531		250,343
SandRidge Energy, Inc. *(a)		96,271		495,796
SM Energy Co.		17,620		1,203,798
Superior Energy Services, Inc. *		43,974		1,080,001
Targa Resources Corp.		7,817		532,260
Teekay Corp.		10,099		403,455
Tesoro Corp.		37,153		1,712,382
Tidewater, Inc.		13,532		730,187
Ultra Petroleum Corp. *		42,197		873,478
Unit Corp. *		12,004		552,784
Western Refining, Inc.		14,696		431,034
Whiting Petroleum Corp. *		32,335		1,631,947
World Fuel Services Corp.		18,947		722,828
WPX Energy, Inc. *		55,140		1,028,912

				38,291,614

Food & Staples Retailing 0.6%
PriceSmart, Inc.		5,001		429,936
Safeway, Inc.		64,422		1,668,530
Sprouts Farmers Market, Inc. *		5,000		184,800
The Fresh Market, Inc. *		11,242		548,722
United Natural Foods, Inc. *		13,532		820,445

				3,652,433

Food, Beverage & Tobacco 2.1%
Constellation Brands, Inc., Class A *		41,715		2,263,039
Dean Foods Co. *		25,665		491,741
Flowers Foods, Inc.		47,407		985,592
Green Mountain Coffee Roasters, Inc. *		33,325		2,876,281
Hillshire Brands Co.		33,879		1,094,631
Ingredion, Inc.		20,943		1,318,152
Pilgrim’s Pride Corp. *		16,111		246,982
Pinnacle Foods, Inc.		8,000		216,800
Seaboard Corp.		83		222,440
Smithfield Foods, Inc. *		33,783		1,132,744
The Hain Celestial Group, Inc. *		12,730		1,041,059
WhiteWave Foods Co., Class A *		46,794		894,701

				12,784,162

Health Care Equipment & Services 4.3%
Align Technology, Inc. *		19,504		849,399
athenahealth, Inc. *		9,918		1,046,250
Brookdale Senior Living, Inc. *		27,137		678,968
Centene Corp. *		14,226		813,016
Community Health Systems, Inc.		25,398		997,126
DENTSPLY International, Inc.		39,393		1,654,112
Health Management Associates, Inc., Class A *		70,287		903,891
Health Net, Inc. *		20,553		620,290
HMS Holdings Corp. *		23,967		598,935
Hologic, Inc. *		72,013		1,536,757
IDEXX Laboratories, Inc. *		14,703		1,379,435
LifePoint Hospitals, Inc. *		13,043		589,935
MEDNAX, Inc. *		13,386		1,303,395
Omnicare, Inc.		28,114		1,528,558
Owens & Minor, Inc.		17,348		591,740
Patterson Cos., Inc.		23,046		919,074
ResMed, Inc. (a)		38,723		1,829,275
Sirona Dental Systems, Inc. *		14,889		964,361
STERIS Corp.		16,081		657,552
Team Health Holdings, Inc. *		19,107		734,282
Teleflex, Inc.		11,225		865,223
Tenet Healthcare Corp. *		28,728		1,121,828
The Cooper Cos., Inc.		13,163		1,719,219
Universal Health Services, Inc., Class B		23,856		1,616,244
WellCare Health Plans, Inc. *		11,904		757,928

				26,276,793

Household & Personal Products 0.8%
Coty, Inc., Class A *		15,582		253,987
Energizer Holdings, Inc.		16,881		1,668,349
Herbalife Ltd. (a)		27,902		1,702,301
Nu Skin Enterprises, Inc., Class A		14,264		1,194,040
Spectrum Brands Holdings, Inc.		6,132		371,231

				5,189,908

Insurance 5.8%
Alleghany Corp. *		4,526		1,751,969
Allied World Assurance Co. Holdings AG		9,275		850,796
American Financial Group, Inc.		20,603		1,061,673
American National Insurance Co.		1,797		188,631
AmTrust Financial Services, Inc. (a)		7,989		285,378
Arch Capital Group Ltd. *		36,255		1,932,754
Arthur J. Gallagher & Co.		34,645		1,432,224
Aspen Insurance Holdings Ltd.		19,313		686,963
Assurant, Inc.		20,860		1,106,414
Assured Guaranty Ltd.		51,789		1,030,083
Axis Capital Holdings Ltd.		29,881		1,284,584
Brown & Brown, Inc.		31,290		974,371
Cincinnati Financial Corp.		39,099		1,786,042
CNO Financial Group, Inc.		60,174		817,765
Erie Indemnity Co., Class A		6,971		514,181
Everest Re Group Ltd.		13,381		1,832,528
Fidelity National Financial, Inc., Class A		59,207		1,403,798
First American Financial Corp.		29,206		610,405
Genworth Financial, Inc., Class A *		134,673		1,589,141
HCC Insurance Holdings, Inc.		26,784		1,130,285
Markel Corp. *		3,548		1,811,964
Mercury General Corp.		9,926		435,553
Old Republic International Corp.		66,567		945,251
PartnerRe Ltd.		15,763		1,373,746
ProAssurance Corp.		16,209		764,092
Protective Life Corp.		21,189		885,488
Reinsurance Group of America, Inc.		19,599		1,270,211
RenaissanceRe Holdings Ltd.		12,133		1,060,424
Torchmark Corp.		25,621		1,765,031

See financial notes 79

Schwab U.S. Mid-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Validus Holdings Ltd.		26,568		919,519
W.R. Berkley Corp.		30,297		1,245,813
White Mountains Insurance Group Ltd.		1,426		798,204

				35,545,281

Materials 7.6%
Airgas, Inc.		17,670		1,796,155
Albemarle Corp.		22,631		1,411,495
Allegheny Technologies, Inc.		28,283		755,439
Allied Nevada Gold Corp. *		22,484		104,326
Aptargroup, Inc.		18,043		1,061,109
Ashland, Inc.		19,743		1,721,787
Avery Dennison Corp.		27,626		1,181,288
Axiall Corp.		18,877		755,646
Bemis Co., Inc.		27,372		1,089,132
Cabot Corp.		16,480		659,035
Carpenter Technology Corp.		11,964		643,304
Chemtura Corp. *		26,567		582,349
Cliffs Natural Resources, Inc. (a)		41,247		860,825
Coeur Mining, Inc. *		27,875		402,515
Compass Minerals International, Inc.		8,701		641,525
Crown Holdings, Inc. *		38,481		1,672,384
Cytec Industries, Inc.		10,006		748,249
Domtar Corp.		9,541		629,706
Eagle Materials, Inc.		12,718		815,987
Graphic Packaging Holding Co. *		51,002		423,827
Greif, Inc., Class A		8,294		446,798
Huntsman Corp.		52,934		926,345
International Flavors & Fragrances, Inc.		22,215		1,755,207
Kronos Worldwide, Inc. (a)		6,160		91,230
Louisiana-Pacific Corp. *		37,854		566,296
Martin Marietta Materials, Inc.		12,492		1,199,856
MeadWestvaco Corp.		48,432		1,736,287
NewMarket Corp.		2,855		782,784
Owens-Illinois, Inc. *		45,330		1,286,919
Packaging Corp. of America		26,103		1,384,503
Reliance Steel & Aluminum Co.		20,965		1,398,156
Rock-Tenn Co., Class A		19,503		2,166,978
Rockwood Holdings, Inc.		21,112		1,348,212
Royal Gold, Inc.		17,127		993,880
RPM International, Inc.		36,209		1,230,382
Sealed Air Corp.		53,563		1,521,189
Silgan Holdings, Inc.		12,438		586,825
Sonoco Products Co.		26,779		996,982
Steel Dynamics, Inc.		60,737		926,847
The Scotts Miracle-Gro Co., Class A		10,680		562,943
The Valspar Corp.		22,130		1,375,601
Tronox Ltd., Class A		6,603		141,040
United States Steel Corp. (a)		37,540		671,966
Valhi, Inc.		6,096		120,213
Vulcan Materials Co.		35,697		1,706,316
W.R. Grace & Co. *		19,065		1,531,873
Walter Energy, Inc. (a)		17,232		222,982
Westlake Chemical Corp.		5,470		553,454

				46,188,147

Media 1.6%
AMC Networks, Inc., Class A *		15,339		950,711
Cablevision Systems Corp., Class A		59,143		1,048,605
Cinemark Holdings, Inc.		27,875		821,476
Clear Channel Outdoor Holdings, Inc., Class A *		10,773		81,444
Gannett Co., Inc.		62,041		1,494,568
John Wiley & Sons, Inc., Class A		12,870		563,706
Lamar Advertising Co., Class A *		15,237		641,021
Morningstar, Inc.		5,696		427,713
Regal Entertainment Group, Class A (a)		21,907		391,916
The Interpublic Group of Cos., Inc.		115,934		1,822,482
The Madison Square Garden Co., Class A *		16,844		980,321
The Washington Post Co., Class B		1,237		697,668

				9,921,631

Pharmaceuticals, Biotechnology & Life Sciences 5.0%
Alkermes plc *		36,554		1,160,589
ARIAD Pharmaceuticals, Inc. *		50,232		934,315
Bio-Rad Laboratories, Inc., Class A *		5,470		623,635
BioMarin Pharmaceutical, Inc. *		37,333		2,444,191
Bruker Corp. *		25,724		515,509
Cepheid, Inc. *		17,996		643,897
Charles River Laboratories International, Inc. *		13,251		610,208
Covance, Inc. *		15,135		1,226,540
Cubist Pharmaceuticals, Inc. *		17,896		1,133,891
Endo Health Solutions, Inc. *		30,430		1,250,369
Hospira, Inc. *		44,824		1,749,481
Illumina, Inc. *		33,421		2,601,491
Incyte Corp. *		36,446		1,235,155
Jazz Pharmaceuticals plc *		13,472		1,181,360
Medivation, Inc. *		20,447		1,155,869
Mettler-Toledo International, Inc. *		8,087		1,781,000
Onyx Pharmaceuticals, Inc. *		19,741		2,439,593
PerkinElmer, Inc.		30,429		1,094,531
Pharmacyclics, Inc. *		14,238		1,587,537
Quintiles Transnational Holdings, Inc. *		6,236		269,769
Salix Pharmaceuticals Ltd. *		14,257		954,364
Seattle Genetics, Inc. *		28,625		1,213,700
Techne Corp.		9,637		746,964
United Therapeutics Corp. *		12,866		912,328
Warner Chilcott plc, Class A		48,360		1,037,322

				30,503,608

Real Estate 8.9%
Alexandria Real Estate Equities, Inc.		18,688		1,152,489
American Campus Communities, Inc.		28,600		952,666
American Homes 4 Rent, Class A *		12,000		190,560
Apartment Investment & Management Co., Class A		40,264		1,108,468
BioMed Realty Trust, Inc.		51,958		956,547
BRE Properties, Inc.		20,991		1,007,358
Camden Property Trust		22,385		1,383,169
CBL & Associates Properties, Inc.		44,540		855,168
CBRE Group, Inc., Class A *		82,455		1,803,291
Chimera Investment Corp.		283,560		833,666
Corrections Corp. of America		31,549		1,039,224
CYS Investments, Inc.		47,556		365,230

80 See financial notes

Schwab U.S. Mid-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
DDR Corp.		67,766		1,051,728
Douglas Emmett, Inc.		36,181		835,781
Duke Realty Corp.		86,153		1,256,972
EPR Properties		12,718		622,928
Equity Lifestyle Properties, Inc.		20,491		712,062
Equity One, Inc.		16,765		356,424
Essex Property Trust, Inc.		10,307		1,477,096
Extra Space Storage, Inc.		28,384		1,170,272
Federal Realty Investment Trust		17,246		1,678,208
Forest City Enterprises, Inc., Class A *		40,296		721,298
Hatteras Financial Corp.		27,253		498,730
Healthcare Trust of America, Inc.		14,644		150,833
Highwoods Properties, Inc.		24,124		814,909
Home Properties, Inc.		15,183		876,059
Hospitality Properties Trust		37,719		1,019,167
Invesco Mortgage Capital, Inc.		35,692		546,445
Jones Lang LaSalle, Inc.		11,670		959,741
Kilroy Realty Corp.		20,971		1,023,175
LaSalle Hotel Properties		25,990		689,515
Liberty Property Trust		39,051		1,351,165
Mack-Cali Realty Corp.		23,046		497,794
MFA Financial, Inc.		98,742		710,942
Mid-America Apartment Communities, Inc.		11,615		716,181
National Retail Properties, Inc.		31,978		979,486
OMEGA Healthcare Investors, Inc.		31,055		881,962
Piedmont Office Realty Trust, Inc., Class A		46,292		795,297
Post Properties, Inc.		14,880		673,022
Rayonier, Inc.		33,797		1,866,946
Realogy Holdings Corp. *		39,056		1,653,241
Realty Income Corp.		52,821		2,086,430
Regency Centers Corp.		25,480		1,211,574
Retail Properties of America, Inc., Class A		8,979		119,780
RLJ Lodging Trust		32,896		755,950
Senior Housing Properties Trust		51,859		1,179,792
SL Green Realty Corp.		24,408		2,128,134
Starwood Property Trust, Inc.		44,432		1,107,690
Tanger Factory Outlet Centers		24,799		765,049
Taubman Centers, Inc.		17,363		1,170,440
The Geo Group, Inc.		19,404		605,599
The Howard Hughes Corp. *		8,012		818,826
Two Harbors Investment Corp.		100,053		951,504
UDR, Inc.		67,923		1,534,381
Weingarten Realty Investors		30,851		885,732
WP Carey, Inc.		15,614		1,026,308

				54,582,404

Retailing 5.5%
Aaron’s, Inc.		19,527		528,596
Abercrombie & Fitch Co., Class A		21,297		751,997
Advance Auto Parts, Inc.		19,875		1,591,391
American Eagle Outfitters, Inc.		47,535		687,832
Ascena Retail Group, Inc. *		35,022		571,559
AutoNation, Inc. *		10,630		496,846
Best Buy Co., Inc.		72,912		2,624,832
Cabela’s, Inc. *		12,164		797,107
Chico’s FAS, Inc.		43,347		676,213
Dick’s Sporting Goods, Inc.		26,857		1,246,433
Dillard’s, Inc., Class A		8,394		640,126
DSW, Inc., Class A		8,834		760,519
Foot Locker, Inc.		40,451		1,302,522
GameStop Corp., Class A (a)		32,219		1,617,716
GNC Holdings, Inc., Class A		19,467		990,286
Groupon, Inc. *		73,891		750,733
Guess?, Inc.		17,137		522,679
HomeAway, Inc. *		8,587		270,834
HSN, Inc.		9,364		504,345
J.C. Penney Co., Inc. *(a)		38,708		483,076
LKQ Corp. *		81,174		2,373,528
Penske Automotive Group, Inc.		11,410		445,332
Pier 1 Imports, Inc.		29,383		644,075
Sally Beauty Holdings, Inc. *		41,426		1,082,461
Sears Holdings Corp. *(a)		9,802		433,641
Signet Jewelers Ltd.		22,269		1,478,662
The Buckle, Inc. (a)		7,440		385,243
Tractor Supply Co.		19,162		2,344,854
TripAdvisor, Inc. *		30,136		2,229,160
Ulta Salon, Cosmetics & Fragrance, Inc. *		15,899		1,577,817
Urban Outfitters, Inc. *		29,194		1,224,104
Williams-Sonoma, Inc.		23,271		1,312,717

				33,347,236

Semiconductors & Semiconductor Equipment 1.8%
Atmel Corp. *		121,226		880,101
Cree, Inc. *		32,098		1,781,118
First Solar, Inc. *		17,496		642,453
Freescale Semiconductor Ltd. *		13,751		196,914
Lam Research Corp. *		44,208		2,063,187
LSI Corp. *		151,797		1,124,816
Marvell Technology Group Ltd.		115,193		1,394,987
ON Semiconductor Corp. *		123,713		895,682
Skyworks Solutions, Inc. *		51,118		1,296,353
Teradyne, Inc. *		50,292		771,982

				11,047,593

Software & Services 7.8%
Akamai Technologies, Inc. *		48,437		2,227,133
Alliance Data Systems Corp. *		13,190		2,581,283
Amdocs Ltd.		43,272		1,595,006
ANSYS, Inc. *		24,822		2,084,552
AOL, Inc. *		21,241		699,466
Aspen Technology, Inc. *		25,336		846,983
Booz Allen Hamilton Holding Corp.		11,732		237,338
Broadridge Financial Solutions, Inc.		32,082		954,760
Cadence Design Systems, Inc. *		77,769		1,047,549
CommVault Systems, Inc. *		11,687		979,721
Computer Sciences Corp.		40,307		2,021,396
Compuware Corp.		58,485		624,035
Concur Technologies, Inc. *		12,489		1,220,425
CoreLogic, Inc. *		27,083		696,033
CoStar Group, Inc. *		7,263		1,078,628
DST Systems, Inc.		8,399		599,437
Electronic Arts, Inc. *		81,492		2,170,947
FactSet Research Systems, Inc. (a)		11,004		1,126,259
FleetCor Technologies, Inc. *		17,865		1,842,060
Fortinet, Inc. *		36,582		724,324
Gartner, Inc. *		25,027		1,450,815
Genpact Ltd.		37,332		718,641

See financial notes 81

Schwab U.S. Mid-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Global Payments, Inc.		21,722		1,035,053
IAC/InterActiveCorp		20,548		1,008,701
Informatica Corp. *		29,691		1,062,047
Jack Henry & Associates, Inc.		22,939		1,144,656
Lender Processing Services, Inc.		23,490		749,331
MAXIMUS, Inc.		19,504		731,595
MICROS Systems, Inc. *		20,950		1,024,455
NetSuite, Inc. *		7,628		758,452
NeuStar, Inc., Class A *		17,464		882,631
PTC, Inc. *		33,053		861,692
SAIC, Inc.		75,450		1,137,032
ServiceNow, Inc. *		3,501		164,127
SolarWinds, Inc. *		16,932		617,171
Solera Holdings, Inc.		18,783		969,579
Splunk, Inc. *		6,974		385,035
Synopsys, Inc. *		42,362		1,536,046
Syntel, Inc.		4,524		325,140
Tableau Software, Inc., Class A *		2,120		153,297
TIBCO Software, Inc. *		42,923		967,484
Total System Services, Inc.		44,287		1,225,421
Ultimate Software Group, Inc. *		7,740		1,085,225
Vantiv, Inc., Class A *		29,510		779,359
VeriFone Systems, Inc. *		29,789		590,418
WEX, Inc. *		10,501		840,395

				47,561,133

Technology Hardware & Equipment 3.5%
3D Systems Corp. *(a)		25,080		1,289,112
Anixter International, Inc. *		7,428		620,684
Arrow Electronics, Inc. *		29,166		1,353,886
Aruba Networks, Inc. *		29,006		482,370
Avnet, Inc. *		36,513		1,407,941
AVX Corp.		12,926		166,358
Brocade Communications Systems, Inc. *		125,788		930,831
CDW Corp. *		6,325		138,707
Dolby Laboratories, Inc., Class A (a)		13,155		413,462
EchoStar Corp., Class A *		10,791		434,446
FEI Co.		11,356		888,948
FLIR Systems, Inc.		38,568		1,206,407
Harris Corp.		29,705		1,682,194
Ingram Micro, Inc., Class A *		41,587		919,073
IPG Photonics Corp.		7,881		423,682
Jabil Circuit, Inc.		48,791		1,113,411
JDS Uniphase Corp. *		64,830		831,769
Molex, Inc.		36,800		1,067,936
National Instruments Corp.		26,182		726,550
NCR Corp. *		43,923		1,562,780
Palo Alto Networks, Inc. *		9,008		432,564
Polycom, Inc. *		45,283		449,660
Riverbed Technology, Inc. *		42,680		658,979
Trimble Navigation Ltd. *		68,694		1,734,523
Zebra Technologies Corp., Class A *		14,228		648,797

				21,585,070

Telecommunication Services 1.1%
Frontier Communications Corp. (a)		275,566		1,193,201
Level 3 Communications, Inc. *		44,548		996,093
T-Mobile US, Inc. *		44,226		1,032,677
Telephone & Data Systems, Inc.		26,041		721,075
tw telecom, Inc. *		40,864		1,169,528
United States Cellular Corp.		3,614		154,607
Windstream Corp. (a)		160,564		1,295,752

				6,562,933

Transportation 2.4%
Alaska Air Group, Inc.		19,127		1,082,971
AMERCO		1,763		288,427
Avis Budget Group, Inc. *		29,179		781,122
Genesee & Wyoming, Inc., Class A *		13,472		1,166,406
Hertz Global Holdings, Inc. *		108,487		2,606,943
J.B. Hunt Transport Services, Inc.		24,947		1,796,184
Kirby Corp. *		15,077		1,212,643
Landstar System, Inc.		12,770		697,880
Old Dominion Freight Line, Inc. *		19,342		839,830
Ryder System, Inc.		14,343		797,614
United Continental Holdings, Inc. *		96,623		2,749,890
US Airways Group, Inc. *		51,496		832,175

				14,852,085

Utilities 5.5%
AGL Resources, Inc.		31,591		1,388,424
Alliant Energy Corp.		30,328		1,504,572
American Water Works Co., Inc.		47,808		1,947,698
Aqua America, Inc.		37,516		1,139,361
Atmos Energy Corp.		24,941		1,006,369
Cleco Corp.		16,900		763,204
CMS Energy Corp.		70,625		1,873,681
Great Plains Energy, Inc.		40,654		891,136
Hawaiian Electric Industries, Inc.		27,113		678,096
IDACORP, Inc.		13,817		661,420
Integrys Energy Group, Inc.		21,618		1,208,879
ITC Holdings Corp.		14,194		1,261,705
MDU Resources Group, Inc.		52,080		1,390,536
National Fuel Gas Co.		23,024		1,503,007
NRG Energy, Inc.		86,898		2,281,072
NV Energy, Inc.		62,926		1,475,615
OGE Energy Corp.		53,158		1,871,693
Pepco Holdings, Inc.		66,273		1,255,211
Piedmont Natural Gas Co., Inc.		20,844		672,427
Pinnacle West Capital Corp.		29,462		1,598,903
Questar Corp.		46,600		1,021,472
SCANA Corp.		38,355		1,845,643
TECO Energy, Inc.		56,287		930,424
UGI Corp.		31,232		1,224,294
Vectren Corp.		22,669		739,009
Westar Energy, Inc.		34,670		1,078,584
WGL Holdings, Inc.		14,198		592,624

				33,805,059

Total Common Stock
(Cost $549,296,637)				610,190,297




Other Investment Companies 0.1% of net assets

Equity Fund 0.0%
SPDR S&P MidCap 400 ETF Trust		501		107,720

82 See financial notes

Schwab U.S. Mid-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund 0.00% (b)		243,030		243,030

Total Other Investment Companies
(Cost $348,920)				350,750



End of Investments



Collateral Invested for Securities on Loan 1.6% of net assets


State Street Institutional U.S. Government Money Market Fund 0.00% (b)		9,782,107		9,782,107

Total Collateral Invested for Securities on Loan
(Cost $9,782,107)				9,782,107



End of Collateral Invested for Securities on Loan

At 08/31/13, the tax basis cost of the fund’s investments was $550,198,435 and the unrealized appreciation and depreciation were $73,773,637 and ($13,431,025), respectively, with a net unrealized appreciation of $60,342,612.


*		Non-income producing security.
(a)		All or a portion of this security is on loan. Securities on loan were valued at $13,174,490.
(b)		The rate shown is the 7-day yield.


ETF —		Exchange Traded Fund

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2013 (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		$610,190,297		$—		$—		$610,190,297
Other Investment Companies¹		350,750		—		—		350,750

Total		$610,541,047		$—		$—		$610,541,047

Other Financial Instruments
Collateral Invested for Securities on Loan		$9,782,107		$—		$—		$9,782,107


¹		As categorized in Portfolio Holdings.

See financial notes 83

Schwab U.S. Mid-Cap ETF

Statement of

Assets and Liabilities

As of August 31, 2013



Assets

Investments, at value (cost $549,645,557) including securities on loan of $13,174,490		$610,541,047
Collateral invested for securities on loan		9,782,107
Receivables:
Investments sold		4,943,578
Dividends		574,665
Income from securities on loan	+	18,876

Total assets		625,860,273

Liabilities

Collateral held for securities on loan		9,782,107
Payables:
Investment adviser fees		3,579
Fund shares redeemed	+	4,993,411

Total liabilities		14,779,097

Net Assets

Total assets		625,860,273
Total liabilities	−	14,779,097

Net assets		$611,081,176

Net Assets by Source
Capital received from investors		557,910,676
Net investment income not yet distributed		986,406
Net realized capital losses		(8,711,396	)
Net unrealized capital gains		60,895,490

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$611,081,176

18,550,000

$32.94

84 See financial notes

Schwab U.S. Mid-Cap ETF

Statement of

Operations

For the period September 1, 2012 through August 31, 2013



Investment Income

Dividends (net of foreign withholding tax of $550)		$7,096,127
Interest		63
Securities on loan	+	173,056

Total investment income		7,269,246

Expenses

Investment adviser fees		293,352

Total expenses	−	293,352

Net investment income		6,975,894

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(6,580,727	)
Net realized gains on in-kind redemptions	+	27,097,153

Net realized gains		20,516,426
Net unrealized gains on investments	+	59,061,955

Net realized and unrealized gains		79,578,381

Net increase in net assets resulting from operations		$86,554,275

See financial notes 85

Schwab U.S. Mid-Cap ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/12-8/31/13				9/1/11-8/31/12
Net investment income		$6,975,894			$2,378,487
Net realized gains		20,516,426			3,390,224
Net unrealized gains	+	59,061,955			12,136,881

Net increase in net assets resulting from operations		86,554,275			17,905,592

Distributions to Shareholders

Distributions from net investment income		($6,489,136	)		($1,917,350	)

Transactions in Fund Shares

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

14,550,000

$441,831,535

6,500,000

$161,782,743

Shares redeemed

(3,750,001

)

(116,655,372

)

(2,100,000

)

(51,481,582

)

Net transactions in fund shares

10,799,999

$325,176,163

4,400,000

$110,301,161

Shares Outstanding and Net Assets

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

7,750,001

$205,839,874

3,350,001

$79,550,471

Total increase

10,799,999

405,241,302

4,400,000

126,289,403

End of period

18,550,000

$611,081,176

7,750,001

$205,839,874

Net investment income not yet distributed

$986,406

$564,147

86 See financial notes

Schwab U.S. Small-Cap ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			9/1/10–			10/30/09¹–
	8/31/13			8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		36.55			32.34			26.48			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.74			0.49			0.39			0.23
Net realized and unrealized gains (losses)		9.18			4.16			5.86			1.45	²

Total from investment operations		9.92			4.65			6.25			1.68
Less distributions:
Distributions from net investment income		(0.76	)		(0.44	)		(0.39	)		(0.20	)

Net asset value at end of period		45.71			36.55			32.34			26.48

Total return (%)		27.47			14.52			23.55			6.67	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.09	⁴		0.13			0.13			0.14	^5,6
Gross operating expenses		0.09	⁴		0.13			0.13			0.14	⁵
Net investment income (loss)		1.74			1.44			1.17			1.05	⁵
Portfolio turnover rate⁷		22			12			11			8	³
Net assets, end of period ($ x 1,000)		1,446,857			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 Effective September 20, 2012, the annual operating expense ratio was reduced to 0.10%. On March 11, 2013, the rate was further reduced to 0.08%. The ratio presented for the period ended 8/31/13 is a blended ratio. Please see financial note 4 for additional information.

⁵ Annualized.

⁶ Effective June 14, 2010, the annual operating expense ratio was reduced. The ratio presented for period ended 8/31/10 is a blended ratio.

⁷ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

See financial notes 87

Schwab U.S. Small-Cap ETF

Portfolio Holdings as of August 31, 2013

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		1,259,013,061		1,444,684,613
	0	.1%	Other Investment Companies		1,702,649		1,702,312
	0	.0%	Rights		—		24,716
	0	.0%	Warrants		9,004		6,187


	100	.0%	Total Investments		1,260,724,714		1,446,417,828
	3	.1%	Collateral Invested for Securities on Loan		45,001,086		45,001,086
	(3	.1)%	Other Assets and Liabilities, Net				(44,562,330	)


	100	.0%	Net Assets				1,446,856,584


	Number		Value
Security	of Shares		($)

Common Stock 99.9% of net assets

Automobiles & Components 1.5%
American Axle & Manufacturing Holdings, Inc. *		50,909		978,980
Cooper Tire & Rubber Co.		47,494		1,516,484
Dana Holding Corp.		108,470		2,273,531
Dorman Products, Inc.		20,261		1,017,913
Drew Industries, Inc.		13,960		585,762
Federal-Mogul Corp. *		25,889		395,066
Fox Factory Holding Corp. *		6,400		116,224
Fuel Systems Solutions, Inc. *		10,845		206,055
Gentex Corp.		106,068		2,389,712
Gentherm, Inc. *		22,306		373,179
Modine Manufacturing Co. *		34,900		454,747
Remy International, Inc.		10,395		203,118
Standard Motor Products, Inc.		14,643		448,955
Superior Industries International, Inc.		17,330		302,235
Tenneco, Inc. *		45,295		2,089,458
The Goodyear Tire & Rubber Co. *		180,016		3,621,920
Thor Industries, Inc.		32,701		1,675,272
Visteon Corp. *		37,246		2,667,186
Winnebago Industries, Inc. *		18,058		402,152

				21,717,949

Banks 8.2%
1st Source Corp.		4,218		108,656
Ameris Bancorp *		18,058		345,991
Arrow Financial Corp. (a)		9,289		235,848
Associated Banc-Corp.		122,908		1,960,383
Astoria Financial Corp.		61,454		755,884
BancFirst Corp.		4,307		220,002
Bancorp, Inc. *		25,721		406,649
BancorpSouth, Inc.		62,820		1,217,452
Bank Mutual Corp.		31,902		189,498
Bank of Hawaii Corp.		32,701		1,684,101
Bank of the Ozarks, Inc.		22,474		1,019,870
BankUnited, Inc.		34,900		1,031,295
Banner Corp.		12,820		439,213
BBCN Bancorp, Inc.		59,092		789,469
Beneficial Mutual Bancorp, Inc. *		26,412		244,575
Berkshire Hills Bancorp, Inc.		18,758		466,136
BNC Bancorp		14,643		190,652
BofI Holding, Inc. *		8,528		552,359
Boston Private Financial Holdings, Inc.		59,078		603,777
Bridge Capital Holdings *		6,980		111,959
Brookline Bancorp, Inc.		52,782		477,677
Bryn Mawr Bank Corp.		9,029		227,621
Camden National Corp.		6,171		235,485
Capital Bank Financial Corp., Class A *		8,001		158,020
CapitalSource, Inc.		146,736		1,694,801
Capitol Federal Financial, Inc.		99,086		1,212,813
Cardinal Financial Corp.		23,168		380,882
Cascade Bancorp *(a)		5,071		30,375
Cathay General Bancorp		52,275		1,151,095
Centerstate Banks, Inc.		22,809		208,702
Central Pacific Financial Corp.		21,295		361,802
Chemical Financial Corp.		20,558		560,000
Citizens & Northern Corp.		9,712		186,470
City Holding Co.		12,151		496,368
City National Corp.		34,551		2,262,054
Clifton Savings Bancorp, Inc.		6,477		78,048
CoBiz Financial, Inc.		26,145		234,259
Columbia Banking System, Inc.		37,604		872,413
Commerce Bancshares, Inc.		55,623		2,402,357
Community Bank System, Inc.		29,969		996,170
Community Trust Bancorp, Inc.		11,078		417,862
CommunityOne Bancorp *		8,346		70,858
CVB Financial Corp.		66,918		852,535
Dime Community Bancshares, Inc.		23,423		372,894
Eagle Bancorp, Inc. *		16,077		409,642
East West Bancorp, Inc.		99,362		2,904,351
Enterprise Financial Services Corp.		12,943		213,948
EverBank Financial Corp.		17,968		252,630
F.N.B. Corp.		105,383		1,271,973
Federal Agricultural Mortgage Corp., Class C		7,830		263,479
Financial Institutions, Inc.		6,980		129,409
First Bancorp		12,839		180,516
First BanCorp *		55,936		357,431
First Busey Corp.		55,893		266,051
First Citizens BancShares, Inc., Class A		4,098		828,779
First Commonwealth Financial Corp.		72,306		530,003
First Community Bancshares, Inc.		12,102		182,135
First Connecticut Bancorp, Inc.		9,029		126,406
First Financial Bancorp		43,246		648,690
First Financial Bankshares, Inc. (a)		22,788		1,310,310

88 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
First Financial Corp.		9,100		276,822
First Financial Holdings, Inc.		18,155		977,284
First Horizon National Corp.		179,431		1,984,507
First Interstate BancSystem, Inc.		14,870		337,995
First Merchants Corp.		21,156		361,344
First Midwest Bancorp, Inc.		57,206		859,806
First Niagara Financial Group, Inc.		257,898		2,604,770
FirstMerit Corp.		120,640		2,552,742
Flagstar Bancorp, Inc. *		16,306		236,437
Flushing Financial Corp.		21,295		381,180
Franklin Financial Corp.		9,029		161,800
Fulton Financial Corp.		144,224		1,743,668
German American Bancorp, Inc.		8,346		199,219
Glacier Bancorp, Inc.		54,471		1,285,516
Great Southern Bancorp, Inc.		7,710		204,932
Hancock Holding Co.		62,722		2,016,512
Hanmi Financial Corp.		23,672		386,564
Heartland Financial USA, Inc.		11,121		302,158
Home BancShares, Inc.		34,835		885,506
Home Loan Servicing Solutions Ltd.		49,035		1,117,998
HomeStreet, Inc.		6,147		120,666
HomeTrust Bancshares, Inc. *		16,796		274,615
Hudson Valley Holding Corp.		12,056		221,348
IBERIABANK Corp.		22,306		1,167,496
Independent Bank Corp.		16,931		601,220
Independent Bank Group, Inc.		4,383		150,162
International Bancshares Corp.		41,877		917,944
Investors Bancorp, Inc.		34,900		726,618
Kearny Financial Corp. *		10,773		105,360
Lakeland Bancorp, Inc.		20,257		221,004
Lakeland Financial Corp.		12,662		393,788
MainSource Financial Group, Inc.		14,643		208,663
MB Financial, Inc.		41,197		1,111,907
Meridian Interstate Bancorp, Inc. *		6,247		122,566
Metro Bancorp, Inc. *		9,712		184,722
MGIC Investment Corp. *		252,196		1,820,855
National Bank Holdings Corp., Class A		5,961		116,538
National Bankshares, Inc.		4,098		149,700
National Penn Bancshares, Inc.		83,760		840,950
Nationstar Mortgage Holdings, Inc. *(a)		12,768		634,570
NBT Bancorp, Inc.		32,430		694,651
Northfield Bancorp, Inc.		18,160		217,920
Northwest Bancshares, Inc.		65,552		874,464
OceanFirst Financial Corp.		13,127		214,101
OFG Bancorp		33,989		583,931
Old National Bancorp		71,166		935,121
OmniAmerican Bancorp, Inc. *		6,147		139,844
Oritani Financial Corp.		28,755		445,990
PacWest Bancorp		28,947		962,488
Park National Corp. (a)		9,570		728,181
Park Sterling Corp.		32,018		191,147
Peoples Bancorp, Inc.		7,583		158,940
Pinnacle Financial Partners, Inc. *		24,429		682,791
Popular, Inc. *		75,000		2,329,500
PrivateBancorp, Inc.		44,577		972,670
Prosperity Bancshares, Inc.		34,626		2,070,635
Provident Financial Services, Inc.		40,729		658,995
Provident New York Bancorp		33,060		336,551
Radian Group, Inc.		127,006		1,720,931
Renasant Corp.		18,760		472,189
Republic Bancorp, Inc., Class A		8,409		222,082
Rockville Financial, Inc.		20,613		269,000
Roma Financial Corp. *		6,402		114,980
S&T Bancorp, Inc.		21,877		491,795
S.Y. Bancorp, Inc.		10,151		269,509
Sandy Spring Bancorp, Inc.		18,434		412,000
Security National Financial Corp., Class A *(a)		6,980		41,671
Signature Bank *		34,541		3,029,936
Simmons First National Corp., Class A		12,150		294,151
Southside Bancshares, Inc.		12,869		320,181
Southwest Bancorp, Inc. *		13,127		189,554
State Bank Financial Corp.		23,686		359,080
StellarOne Corp.		16,631		340,603
Sterling Bancorp		22,842		289,865
Sterling Financial Corp.		21,748		526,302
Sun Bancorp, Inc. *		30,652		111,573
Susquehanna Bancshares, Inc.		137,756		1,737,103
SVB Financial Group *		33,049		2,736,457
Synovus Financial Corp.		720,965		2,299,878
Taylor Capital Group, Inc. *		11,548		244,356
TCF Financial Corp.		122,908		1,726,857
Territorial Bancorp, Inc.		8,372		183,431
Texas Capital Bancshares, Inc. *		30,652		1,351,140
TFS Financial Corp. *		59,938		652,125
The First of Long Island Corp.		4,098		150,929
Tompkins Financial Corp.		8,607		373,544
TowneBank		24,519		344,492
TriCo Bancshares		10,142		207,911
TrustCo Bank Corp.		70,372		410,972
Trustmark Corp.		49,545		1,231,689
UMB Financial Corp.		24,355		1,454,724
Umpqua Holdings Corp.		84,443		1,371,354
Union First Market Bankshares Corp.		14,247		304,743
United Bankshares, Inc. (a)		32,018		889,140
United Community Banks, Inc. *		34,217		498,884
United Financial Bancorp, Inc.		12,813		200,652
Univest Corp. of Pennsylvania		13,603		259,273
Valley National Bancorp (a)		143,848		1,451,426
ViewPoint Financial Group, Inc.		23,672		470,836
Walker & Dunlop, Inc. *		14,309		207,910
Washington Federal, Inc.		76,984		1,608,196
Washington Trust Bancorp, Inc.		10,355		310,754
Waterstone Financial, Inc. *		4,781		46,710
Webster Financial Corp.		67,211		1,778,403
WesBanco, Inc.		20,511		588,461
Westamerica Bancorp		19,424		914,288
Western Alliance Bancorp *		55,157		902,920
Wilshire Bancorp, Inc.		48,199		391,858
Wintrust Financial Corp.		27,920		1,106,749
WSFS Financial Corp.		5,912		352,355

				118,792,377

Capital Goods 10.5%
A.O. Smith Corp.		57,482		2,417,118
AAON, Inc.		20,472		477,407
AAR Corp.		29,795		747,557
Aceto Corp.		19,033		279,785

See financial notes 89

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Actuant Corp., Class A		54,474		1,945,811
Acuity Brands, Inc.		31,036		2,653,578
AECOM Technology Corp. *		76,201		2,219,735
Aegion Corp. *		29,286		626,720
Aerovironment, Inc. *		15,404		337,502
Air Lease Corp.		54,980		1,418,484
Aircastle Ltd.		42,563		693,777
Alamo Group, Inc.		6,727		305,137
Albany International Corp., Class A		21,656		698,839
Alliant Techsystems, Inc.		23,673		2,290,599
Altra Holdings, Inc.		20,075		498,864
Ameresco, Inc., Class A *		14,975		128,186
American Railcar Industries, Inc. (a)		7,672		271,359
American Science & Engineering, Inc.		5,231		294,924
American Woodmark Corp. *		7,228		252,040
Apogee Enterprises, Inc.		20,257		565,170
Applied Industrial Technologies, Inc.		31,335		1,492,173
Argan, Inc.		11,815		209,716
Armstrong World Industries, Inc. *		16,009		777,397
Astec Industries, Inc.		15,633		540,276
Astronics Corp. *		8,001		372,287
AZZ, Inc.		18,741		703,537
Barnes Group, Inc.		34,519		1,079,409
Beacon Roofing Supply, Inc. *		36,266		1,317,544
Blount International, Inc. *		36,722		426,342
Brady Corp., Class A		34,900		1,151,700
Briggs & Stratton Corp.		36,266		692,318
Builders FirstSource, Inc. *		40,922		232,437
CAI International, Inc. *		11,597		254,206
Capstone Turbine Corp. *(a)		226,242		251,129
Chart Industries, Inc. *		21,906		2,501,227
CIRCOR International, Inc.		13,032		749,210
CLARCOR, Inc.		36,266		1,942,407
Columbus McKinnon Corp. *		14,307		306,170
Comfort Systems USA, Inc.		27,948		422,015
Commercial Vehicle Group, Inc. *		21,231		148,829
Crane Co.		35,784		2,054,359
Cubic Corp.		14,761		741,150
Curtiss-Wright Corp.		34,900		1,457,424
DigitalGlobe, Inc. *		55,084		1,663,537
Douglas Dynamics, Inc.		17,499		246,036
DXP Enterprises, Inc. *		7,205		489,796
Dycom Industries, Inc. *		24,355		618,861
Edgen Group, Inc. *		31,483		232,030
EMCOR Group, Inc.		50,226		1,887,995
Encore Wire Corp.		13,960		526,711
EnerSys, Inc.		35,583		1,824,696
Engility Holdings, Inc. *		12,444		418,865
EnPro Industries, Inc. *		15,326		873,275
ESCO Technologies, Inc.		19,424		595,346
Esterline Technologies Corp. *		22,989		1,753,831
Exelis, Inc.		138,989		2,044,528
Federal Signal Corp. *		46,661		544,534
Foster Wheeler AG *		73,969		1,714,601
Franklin Electric Co., Inc.		27,920		1,002,886
FreightCar America, Inc.		10,151		182,515
GATX Corp.		34,927		1,580,796
GenCorp, Inc. *(a)		45,359		683,560
Generac Holdings, Inc.		50,722		2,008,084
General Cable Corp.		36,949		1,128,053
Gibraltar Industries, Inc. *		21,195		272,992
Global Brass & Copper Holdings, Inc. *		5,156		101,831
Global Power Equipment Group, Inc.		13,984		259,823
Graco, Inc.		44,839		3,115,862
GrafTech International Ltd. *		94,988		742,806
Graham Corp.		8,017		276,667
Granite Construction, Inc.		26,404		747,761
Great Lakes Dredge & Dock Corp.		41,625		280,136
Greenbrier Cos., Inc. *		18,173		410,165
Griffon Corp.		33,144		365,578
H&E Equipment Services, Inc.		21,106		508,232
Harsco Corp.		60,771		1,429,942
HD Supply Holdings, Inc. *		39,259		892,750
HEICO Corp.		33,247		2,077,938
Hexcel Corp. *		72,768		2,588,358
Huntington Ingalls Industries, Inc.		36,949		2,339,611
Hyster-Yale Materials Handling, Inc.		4,608		348,411
II-VI, Inc. *		40,609		782,942
Insteel Industries, Inc.		11,713		187,291
ITT Corp.		66,490		2,184,196
John Bean Technologies Corp.		21,596		473,168
Kadant, Inc.		8,346		259,310
Kaman Corp.		19,898		700,410
Kaydon Corp.		23,672		673,468
Kennametal, Inc.		58,091		2,470,029
Kratos Defense & Security Solutions, Inc. *		37,632		317,614
L.B. Foster Co., Class A		6,980		296,092
Layne Christensen Co. *		14,629		278,097
Lennox International, Inc.		33,384		2,291,812
Lindsay Corp.		9,611		730,628
LMI Aerospace, Inc. *		6,980		84,388
Lydall, Inc. *		12,444		193,255
MasTec, Inc. *		41,197		1,310,065
Meritor, Inc. *		72,867		542,859
Michael Baker Corp.		6,630		268,117
Moog, Inc., Class A *		32,701		1,661,211
MRC Global, Inc. *		75,058		1,970,273
Mueller Industries, Inc.		20,824		1,114,917
Mueller Water Products, Inc., Class A		118,660		895,883
MYR Group, Inc. *		15,401		337,590
National Presto Industries, Inc. (a)		3,645		251,432
Navistar International Corp. *		59,938		2,054,075
NCI Building Systems, Inc. *		13,960		167,241
Nortek, Inc. *		11,078		741,672
Orbital Sciences Corp. *		44,612		774,464
PGT, Inc. *		22,476		228,806
Pike Electric Corp.		16,507		183,228
Ply Gem Holdings, Inc. *		11,476		176,042
Polypore International, Inc. *(a)		34,900		1,491,975
Powell Industries, Inc. *		6,618		348,967
Power Solutions International, Inc. *		3,664		192,873
Preformed Line Products Co.		2,109		145,373
Primoris Services Corp.		22,606		508,183
Proto Labs, Inc. *		7,180		510,067
Quanex Building Products Corp.		27,604		459,331

90 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Raven Industries, Inc.		27,237		795,593
RBC Bearings, Inc. *		17,203		1,027,535
Regal-Beloit Corp.		33,384		2,126,561
Rexnord Corp. *		31,017		595,216
Rush Enterprises, Inc., Class A *		25,564		639,867
Simpson Manufacturing Co., Inc.		29,969		937,131
Solarcity Corp. *		9,185		287,858
Spirit AeroSystems Holdings, Inc., Class A *		81,713		1,845,080
Standex International Corp.		9,278		495,352
Sun Hydraulics Corp.		19,459		596,224
TAL International Group, Inc. *(a)		24,126		1,032,593
Taser International, Inc. *		37,734		439,224
Teledyne Technologies, Inc. *		27,920		2,154,586
Tennant Co.		13,960		717,125
Textainer Group Holdings Ltd. (a)		12,445		433,833
The Babcock & Wilcox Co.		82,952		2,570,682
The ExOne Co. *(a)		3,810		261,023
The Gorman-Rupp Co.		11,087		387,712
The Keyw Holding Corp. *(a)		20,397		235,381
The Manitowoc Co., Inc.		96,354		1,925,153
The Middleby Corp. *		13,660		2,539,940
The Toro Co.		42,465		2,242,577
Thermon Group Holdings, Inc. *		13,496		279,367
Titan International, Inc.		39,016		633,620
Titan Machinery, Inc. *(a)		12,556		220,483
Trex Co., Inc. *		11,477		508,087
TriMas Corp. *		24,168		849,264
Trinity Industries, Inc.		58,473		2,468,730
Triumph Group, Inc.		38,013		2,735,796
Tutor Perini Corp. *		26,973		517,342
Twin Disc, Inc.		6,146		162,193
Universal Forest Products, Inc.		14,794		553,887
URS Corp.		57,336		2,839,279
USG Corp. *		64,869		1,514,042
Wabash National Corp. *		50,909		530,472
Watsco, Inc.		21,824		1,959,795
Watts Water Technologies, Inc., Class A		20,940		1,084,901
WESCO International, Inc. *		32,701		2,412,353
Woodward, Inc.		44,613		1,720,277

				151,258,731

Commercial & Professional Services 3.2%
ABM Industries, Inc.		38,315		925,307
Acacia Research Corp.		36,268		796,808
Acco Brands Corp. *		84,443		556,479
Barrett Business Services, Inc.		4,781		307,275
CBIZ, Inc. *		40,708		278,850
CDI Corp.		11,081		150,258
Clean Harbors, Inc. *		39,681		2,255,071
Consolidated Graphics, Inc. *		6,477		346,519
Covanta Holding Corp.		96,458		2,038,158
Deluxe Corp.		37,533		1,476,924
EnerNOC, Inc. *		17,130		248,556
Ennis, Inc.		16,692		297,284
Exponent, Inc.		9,712		632,543
Franklin Covey Co. *		11,761		184,765
FTI Consulting, Inc. *		29,770		995,509
G&K Services, Inc., Class A		14,368		739,090
GP Strategies Corp. *		13,960		352,350
Healthcare Services Group, Inc.		51,592		1,249,042
Heidrick & Struggles International, Inc.		12,706		191,225
Heritage-Crystal Clean, Inc. *		4,781		72,623
Herman Miller, Inc.		43,929		1,118,872
HNI Corp.		33,384		1,117,696
Huron Consulting Group, Inc. *		17,375		827,050
ICF International, Inc. *		14,643		481,608
Innerworkings, Inc. *		24,165		248,175
Insperity, Inc.		16,260		518,694
Interface, Inc.		43,246		763,724
KAR Auction Services, Inc.		68,751		1,831,527
Kelly Services, Inc., Class A		21,164		385,185
Kforce, Inc.		20,257		329,581
Kimball International, Inc., Class B		24,844		244,465
Knoll, Inc.		35,583		541,929
Korn/Ferry International *		36,949		654,367
McGrath Rentcorp		17,220		569,638
Mine Safety Appliances Co.		22,306		1,073,588
Mistras Group, Inc. *		12,251		223,336
Mobile Mini, Inc. *		28,603		868,959
Multi-Color Corp.		9,096		284,978
Navigant Consulting, Inc. *		38,315		523,000
NL Industries, Inc.		6,335		69,242
On Assignment, Inc. *		32,701		986,589
Pendrell Corp. *		125,037		240,071
Performant Financial Corp. *		18,173		196,814
Pitney Bowes, Inc. (a)		146,583		2,392,235
Quad/Graphics, Inc.		18,741		587,343
R.R. Donnelley & Sons Co. (a)		133,302		2,223,477
Resources Connection, Inc.		30,093		368,338
RPX Corp. *		18,058		283,330
Schawk, Inc.		9,785		122,312
Standard Parking Corp. *		11,253		250,379
Steelcase, Inc., Class A		59,255		860,383
Swisher Hygiene, Inc. *(a)		78,829		65,428
Team, Inc. *		14,786		576,654
Tetra Tech, Inc. *		48,177		1,097,472
The Advisory Board Co. *		25,822		1,414,271
The Brink’s Co.		36,266		936,751
The Corporate Executive Board Co.		25,038		1,623,464
TMS International Corp., Class A		10,487		182,579
TrueBlue, Inc. *		30,652		745,457
UniFirst Corp.		11,078		1,062,159
United Stationers, Inc.		28,603		1,136,683
US Ecology, Inc.		12,952		363,822
Viad Corp.		15,326		345,908
WageWorks, Inc. *		21,141		882,425
West Corp.		16,067		351,385

				46,065,979

Consumer Durables & Apparel 2.6%
Arctic Cat, Inc.		9,782		525,098
Beazer Homes USA, Inc. *(a)		19,684		333,447
Black Diamond, Inc. *		15,326		159,390
Blyth, Inc. (a)		9,075		83,762
Brunswick Corp.		65,687		2,388,379
Callaway Golf Co.		52,423		362,767
Cavco Industries, Inc. *		5,155		270,844
Columbia Sportswear Co. (a)		9,029		510,951

See financial notes 91

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Crocs, Inc. *		66,235		891,523
Deckers Outdoor Corp. *		25,721		1,510,594
Ethan Allen Interiors, Inc.		19,424		506,384
Fifth & Pacific Cos., Inc. *		88,680		2,114,131
G-III Apparel Group Ltd. *		12,241		560,760
Harman International Industries, Inc.		49,527		3,170,719
Helen of Troy Ltd. *		23,672		951,141
Hovnanian Enterprises, Inc., Class A *(a)		75,019		386,348
Iconix Brand Group, Inc. *		42,052		1,380,147
iRobot Corp. *		19,497		636,967
JAKKS Pacific, Inc. (a)		18,202		94,468
KB Home		61,454		985,108
La-Z-Boy, Inc.		39,681		843,618
Leapfrog Enterprises, Inc. *		31,050		298,701
Libbey, Inc. *		16,009		379,734
M.D.C Holdings, Inc.		29,286		815,029
M/I Homes, Inc. *		17,433		326,520
Maidenform Brands, Inc. *		17,179		402,676
Marine Products Corp.		8,562		74,575
Meritage Homes Corp. *		23,287		929,617
Movado Group, Inc.		13,127		559,342
NACCO Industries, Inc., Class A		4,787		266,062
Oxford Industries, Inc.		9,712		602,533
Perry Ellis International, Inc.		8,566		156,929
Quiksilver, Inc. *		93,472		462,686
Skechers U.S.A., Inc., Class A *		28,603		878,970
Smith & Wesson Holding Corp. *		49,543		542,000
Standard Pacific Corp. *		104,445		745,737
Steinway Musical Instruments, Inc. *		5,464		219,981
Steven Madden Ltd. *		30,652		1,655,208
Sturm Ruger & Co., Inc. (a)		13,127		687,461
Taylor Morrison Home Corp., Class A *		20,785		428,379
Tempur Sealy International, Inc. *		43,929		1,691,706
The Jones Group, Inc.		58,572		862,766
The Ryland Group, Inc.		34,217		1,191,436
TRI Pointe Homes, Inc. *		10,780		151,243
Tumi Holdings, Inc. *		34,999		719,579
Unifi, Inc. *		11,078		250,917
Universal Electronics, Inc. *		11,819		356,461
Vera Bradley, Inc. *(a)		15,835		310,999
WCI Communities, Inc. *		5,100		77,265
William Lyon Homes, Class A *		6,420		132,316
Wolverine World Wide, Inc.		38,287		2,153,644

				36,997,018

Consumer Services 4.3%
AFC Enterprises, Inc. *		16,692		683,537
American Public Education, Inc. *		13,353		534,387
Apollo Group, Inc., Class A *		73,968		1,373,586
Ascent Capital Group, Inc., Class A *		9,030		666,775
Bally Technologies, Inc. *		28,761		2,074,531
Biglari Holdings, Inc. *		835		348,571
BJ’s Restaurants, Inc. *		16,692		521,458
Bloomin’ Brands, Inc. *		32,747		736,807
Bob Evans Farms, Inc.		20,940		1,026,688
Boyd Gaming Corp. *		48,149		583,566
Bravo Brio Restaurant Group, Inc. *		13,096		196,178
Bridgepoint Education, Inc. *(a)		12,782		211,159
Bright Horizons Family Solutions, Inc. *		12,862		468,305
Brinker International, Inc.		52,076		2,082,519
Buffalo Wild Wings, Inc. *		13,960		1,450,584
Caesars Entertainment Corp. *(a)		18,431		395,714
Capella Education Co. *		8,259		448,877
Carriage Services, Inc.		11,761		207,229
CEC Entertainment, Inc.		12,472		504,742
Choice Hotels International, Inc.		20,257		777,464
Churchill Downs, Inc.		9,314		754,434
Chuy’s Holdings, Inc. *		10,791		387,936
Cracker Barrel Old Country Store, Inc.		17,375		1,710,047
Del Frisco’s Restaurant Group, Inc. *		11,598		223,029
Denny’s Corp. *		71,849		403,791
DeVry, Inc.		42,563		1,277,316
Diamond Resorts International, Inc. *		11,300		183,512
DineEquity, Inc.		11,761		779,401
Domino’s Pizza, Inc.		40,799		2,506,690
Education Management Corp. *(a)		14,687		119,258
Fiesta Restaurant Group, Inc. *		14,280		466,528
Grand Canyon Education, Inc. *		31,335		1,081,371
Hillenbrand, Inc.		47,494		1,175,951
Ignite Restaurant Group, Inc. *		4,486		67,111
International Speedway Corp., Class A		19,132		592,901
Interval Leisure Group, Inc.		29,286		632,578
Isle of Capri Casinos, Inc. *		16,796		125,298
ITT Educational Services, Inc. *(a)		12,251		352,951
Jack in the Box, Inc. *		32,701		1,291,362
K12, Inc. *		27,571		1,001,103
Krispy Kreme Doughnuts, Inc. *		49,543		976,988
Life Time Fitness, Inc. *		29,187		1,459,058
LifeLock, Inc. *		12,231		154,233
Marriott Vacations Worldwide Corp. *		21,623		942,763
Matthews International Corp., Class A		20,940		772,686
Multimedia Games Holding Co., Inc. *		20,940		821,686
Noodles & Co. *		3,995		182,412
Orient-Express Hotels Ltd., Class A *		66,918		809,708
Outerwall, Inc. *(a)		20,940		1,301,840
Papa John’s International, Inc. *		12,044		820,558
Pinnacle Entertainment, Inc. *		43,929		1,040,239
Red Robin Gourmet Burgers, Inc. *		9,712		629,920
Regis Corp.		42,563		671,644
Ruby Tuesday, Inc. *		44,348		321,966
Ruth’s Hospitality Group, Inc.		25,146		297,226
Scientific Games Corp., Class A *		38,890		555,738
SeaWorld Entertainment, Inc.		19,220		575,255
Service Corp. International		154,925		2,801,044
SHFL Entertainment, Inc. *		42,157		959,915
Six Flags Entertainment Corp.		69,352		2,289,309
Sonic Corp. *		38,998		622,408
Sotheby’s		50,909		2,347,414

92 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Speedway Motorsports, Inc.		8,982		158,802
Steiner Leisure Ltd. *		9,837		548,118
Stewart Enterprises, Inc., Class A		56,143		734,350
Strayer Education, Inc. (a)		8,385		335,065
Texas Roadhouse, Inc.		43,246		1,074,663
The Cheesecake Factory, Inc.		36,949		1,543,360
The Marcus Corp.		16,097		197,993
The Wendy’s Co.		212,282		1,604,852
Town Sports International Holdings, Inc.		16,692		193,794
Universal Technical Institute, Inc.		15,573		165,541
Vail Resorts, Inc.		26,473		1,800,164
Weight Watchers International, Inc. (a)		20,257		728,037
WMS Industries, Inc. *		41,197		1,058,763

				61,922,757

Diversified Financials 2.6%
Arlington Asset Investment Corp., Class A		10,261		238,260
Artisan Partners Asset Management, Inc.		8,346		400,525
BGC Partners, Inc., Class A		80,195		448,290
Cash America International, Inc.		21,041		900,134
CBOE Holdings, Inc.		66,465		3,050,079
Cohen & Steers, Inc. (a)		13,379		417,425
Cowen Group, Inc., Class A *		57,206		185,347
Credit Acceptance Corp. *		7,945		854,485
DFC Global Corp. *		32,018		361,803
Diamond Hill Investment Group, Inc.		1,366		149,864
ETRADE Financial Corp.		211,174		2,964,883
Encore Capital Group, Inc. *		16,009		686,306
Evercore Partners, Inc., Class A		21,247		947,404
EZCORP, Inc., Class A *		36,554		620,687
Federated Investors, Inc., Class B (a)		68,434		1,858,668
Financial Engines, Inc.		31,405		1,678,597
First Cash Financial Services, Inc. *		20,257		1,119,604
FXCM, Inc., Class A (a)		18,741		355,892
GAMCO Investors, Inc., Class A		3,530		202,904
GFI Group, Inc.		55,419		222,230
Green Dot Corp., Class A *		14,885		341,760
Greenhill & Co., Inc.		19,408		919,745
HFF, Inc., Class A		24,300		558,900
ICG Group, Inc. *		27,310		341,921
Interactive Brokers Group, Inc., Class A		30,528		512,260
INTL FCStone, Inc. *		11,548		221,953
Investment Technology Group, Inc. *		28,308		481,236
Janus Capital Group, Inc.		140,256		1,172,540
KCG Holdings, Inc., Class A *		70,991		616,202
Ladenburg Thalmann Financial Services, Inc. *		64,340		107,448
MarketAxess Holdings, Inc.		27,920		1,417,219
Marlin Business Services Corp.		6,980		170,033
Medallion Financial Corp.		13,960		197,394
Nelnet, Inc., Class A		18,741		709,909
NewStar Financial, Inc. *		15,390		202,686
Oppenheimer Holdings, Inc., Class A		8,599		150,483
PHH Corp. *		42,563		888,290
PICO Holdings, Inc. *		16,891		356,231
Piper Jaffray Cos., Inc. *		12,127		394,249
Portfolio Recovery Associates, Inc. *		37,339		1,980,461
Pzena Investment Management, Inc., Class A		15,327		99,779
RCS Capital Corp., Class A		1,764		28,012
Safeguard Scientifics, Inc. *		15,326		222,840
Stifel Financial Corp. *		42,563		1,703,371
Virtus Investment Partners, Inc. *		4,230		737,289
Waddell & Reed Financial, Inc., Class A		63,739		3,035,251
Walter Investment Management Corp. *		25,584		938,677
Westwood Holdings Group, Inc.		5,092		241,921
WisdomTree Investments, Inc. *		44,992		503,910
World Acceptance Corp. *		9,029		773,514

				37,688,871

Energy 5.8%
Alon USA Energy, Inc.		9,955		123,641
Alpha Natural Resources, Inc. *		165,471		1,006,064
Amyris, Inc. *(a)		33,384		85,463
Apco Oil & Gas International, Inc. *		14,687		213,108
Approach Resources, Inc. *		25,038		583,385
Arch Coal, Inc. (a)		159,174		711,508
Athlon Energy, Inc. *		11,500		319,700
Atwood Oceanics, Inc. *		41,180		2,292,902
Basic Energy Services, Inc. *		20,257		235,791
Berry Petroleum Co., Class A		33,384		1,373,752
Bill Barrett Corp. *		37,094		798,634
Bonanza Creek Energy, Inc. *		17,220		683,634
BPZ Resources, Inc. *(a)		89,714		204,548
Bristow Group, Inc.		26,655		1,751,233
C&J Energy Services, Inc. *		31,335		643,308
CARBO Ceramics, Inc. (a)		14,643		1,194,722
Carrizo Oil & Gas, Inc. *		27,237		933,140
Clayton Williams Energy, Inc. *		4,218		207,779
Clean Energy Fuels Corp. *(a)		49,543		623,251
Cloud Peak Energy, Inc. *		45,978		723,694
Comstock Resources, Inc.		33,691		491,889
Contango Oil & Gas Co.		9,278		332,709
Crosstex Energy, Inc.		30,845		601,786
Delek US Holdings, Inc.		25,439		632,413
Diamondback Energy, Inc. *		26,488		1,065,877
Dril-Quip, Inc. *		26,837		2,737,642
Endeavour International Corp. *(a)		35,148		175,740
Energen Corp.		53,738		3,563,367
Energy XXI Bermuda Ltd.		59,679		1,585,671
EPL Oil & Gas, Inc. *		25,721		870,399
Era Group, Inc. *		14,047		348,787
Evolution Petroleum Corp. *		14,643		164,734
EXCO Resources, Inc.		109,631		798,114
Exterran Holdings, Inc. *		49,301		1,352,326
Forest Oil Corp. *		89,374		496,919
Forum Energy Technologies, Inc. *		14,091		368,761
Geospace Technologies Corp. *		9,029		629,863
Goodrich Petroleum Corp. *		19,454		417,288

See financial notes 93

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Green Plains Renewable Energy, Inc. *		17,499		281,559
Gulf Island Fabrication, Inc.		11,552		271,356
Gulfmark Offshore, Inc., Class A		18,058		830,307
Gulfport Energy Corp. *		50,109		2,956,431
Halcon Resources Corp. *(a)		183,728		872,708
Harvest Natural Resources, Inc. *		30,780		145,282
Helix Energy Solutions Group, Inc. *		71,849		1,798,380
Hercules Offshore, Inc. *		119,343		859,270
Hornbeck Offshore Services, Inc. *		23,672		1,289,651
ION Geophysical Corp. *		90,057		431,373
Isramco, Inc. *		778		82,001
Jones Energy, Inc., Class A *		9,100		135,135
Key Energy Services, Inc. *		115,245		768,684
KiOR, Inc., Class A *(a)		6,548		14,471
Kodiak Oil & Gas Corp. *		198,322		1,981,237
Laredo Petroleum Holdings, Inc. *		43,009		1,129,416
Magnum Hunter Resources Corp. *		118,548		551,248
Matador Resources Co. *		30,511		516,856
Matrix Service Co. *		19,210		299,484
McDermott International, Inc. *		177,382		1,330,365
Midstates Petroleum Co., Inc. *		24,829		112,227
Natural Gas Services Group, Inc. *		9,712		266,303
Newpark Resources, Inc. *		64,869		721,992
Northern Oil and Gas, Inc. *		43,929		565,805
Nuverra Environmental Solutions, Inc. *(a)		109,686		252,278
Panhandle Oil and Gas, Inc., Class A		5,464		155,505
Parker Drilling Co. *		88,008		505,166
Patterson-UTI Energy, Inc.		105,432		2,065,413
PBF Energy, Inc. (a)		29,221		641,985
PDC Energy, Inc. *		25,623		1,470,248
Penn Virginia Corp. *		44,945		216,185
PetroQuest Energy, Inc. *		46,320		194,544
PHI, Inc. *		10,142		355,781
Pioneer Energy Services Corp. *		45,956		310,663
Quicksilver Resources, Inc. *(a)		100,207		167,346
Rentech, Inc.		167,520		323,314
Resolute Energy Corp. *		45,820		359,229
Rex Energy Corp. *		30,596		636,397
RigNet, Inc. *		6,147		223,198
Rosetta Resources, Inc. *		44,581		2,074,354
RPC, Inc. (a)		49,543		707,474
Sanchez Energy Corp. *(a)		9,105		219,977
SandRidge Energy, Inc. *(a)		264,024		1,359,724
SEACOR Holdings, Inc.		13,960		1,159,797
SemGroup Corp., Class A		31,335		1,658,875
Solazyme, Inc. *(a)		28,720		323,100
Stone Energy Corp. *		36,949		1,012,403
Swift Energy Co. *		32,039		361,400
Synergy Resources Corp. *		31,335		293,296
Targa Resources Corp.		21,623		1,472,310
Teekay Corp.		28,544		1,140,333
Tesco Corp. *		23,204		358,502
TETRA Technologies, Inc. *		58,615		688,726
Tidewater, Inc.		36,949		1,993,768
Triangle Petroleum Corp. *		34,046		226,406
Ultra Petroleum Corp. *		111,117		2,300,122
Unit Corp. *		32,701		1,505,881
VAALCO Energy, Inc. *		47,078		261,754
Vantage Drilling Co. *		133,320		229,310
W&T Offshore, Inc.		26,043		402,364
Western Refining, Inc.		40,226		1,179,829
Willbros Group, Inc. *		36,575		333,198
World Fuel Services Corp.		53,610		2,045,221
WPX Energy, Inc. *		146,313		2,730,201

				83,470,660

Food & Staples Retailing 1.1%
Arden Group, Inc., Class A		872		115,714
Casey’s General Stores, Inc.		28,003		1,846,518
Fairway Group Holdings Corp. *		9,960		230,873
Harris Teeter Supermarkets, Inc.		36,949		1,816,043
Ingles Markets, Inc., Class A		10,395		259,771
Nash Finch Co.		6,348		155,082
Natural Grocers by Vitamin Cottage, Inc. *(a)		5,842		225,209
PriceSmart, Inc.		13,196		1,134,460
Rite Aid Corp. *		536,394		1,855,923
Roundy’s, Inc.		22,465		189,605
Spartan Stores, Inc.		16,692		343,188
SUPERVALU, Inc. *		149,825		1,074,245
Susser Holdings Corp. *		12,444		593,703
The Andersons, Inc.		13,127		861,919
The Chefs’ Warehouse, Inc. *		8,639		199,475
The Fresh Market, Inc. *		30,652		1,496,124
The Pantry, Inc. *		19,004		216,836
United Natural Foods, Inc. *		35,667		2,162,490
Village Super Market, Inc., Class A		4,098		143,389
Weis Markets, Inc.		8,346		392,095

				15,312,662

Food, Beverage & Tobacco 2.0%
Alico, Inc.		2,052		82,614
Alliance One International, Inc. *		61,454		173,915
Annie’s, Inc. *(a)		10,616		487,593
B&G Foods, Inc.		39,681		1,343,995
Boulder Brands, Inc. *		45,295		704,790
Cal-Maine Foods, Inc.		10,395		474,324
Calavo Growers, Inc.		10,142		251,116
Chiquita Brands International, Inc. *		34,332		423,314
Coca-Cola Bottling Co. Consolidated		3,614		227,104
Darling International, Inc. *		88,691		1,794,219
Dean Foods Co. *		70,142		1,343,911
Diamond Foods, Inc. *(a)		16,333		338,093
Dole Food Co., Inc. *		27,920		383,062
Fresh Del Monte Produce, Inc.		28,603		825,483
J&J Snack Foods Corp.		11,078		852,120
Lancaster Colony Corp.		14,261		1,052,034
Limoneira Co.		6,477		140,551
National Beverage Corp.		8,437		135,076
Pilgrim’s Pride Corp. *		44,612		683,902
Pinnacle Foods, Inc.		21,725		588,748
Post Holdings, Inc. *		24,355		1,039,958
Sanderson Farms, Inc.		13,960		914,101
Seaboard Corp.		229		613,720
Seneca Foods Corp., Class A *		6,477		190,877

94 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Smithfield Foods, Inc. *		90,600		3,037,818
Snyders-Lance, Inc.		36,266		975,555
The Boston Beer Co., Inc., Class A *		6,147		1,302,180
The Hain Celestial Group, Inc. *		34,300		2,805,054
Tootsie Roll Industries, Inc. (a)		16,009		480,110
TreeHouse Foods, Inc. *		26,755		1,739,878
Universal Corp.		17,375		851,723
Vector Group Ltd. (a)		43,246		706,207
WhiteWave Foods Co., Class A *		127,736		2,442,312

				29,405,457

Health Care Equipment & Services 5.9%
Abaxis, Inc.		15,326		600,473
ABIOMED, Inc. *		26,699		628,761
Acadia Healthcare Co., Inc. *		25,038		959,707
Accretive Health, Inc. *(a)		40,030		375,481
Accuray, Inc. *(a)		49,835		329,908
Air Methods Corp.		26,404		1,080,452
Alere, Inc. *		57,206		1,783,111
Align Technology, Inc. *		52,928		2,305,014
Allscripts Healthcare Solutions, Inc. *		129,888		1,888,572
Amedisys, Inc. *		24,424		397,867
AMN Healthcare Services, Inc. *		35,917		488,471
AmSurg Corp. *		23,573		879,037
Analogic Corp.		9,029		673,925
AngioDynamics, Inc. *		25,798		281,198
Antares Pharma, Inc. *(a)		85,809		377,560
ArthroCare Corp. *		20,940		663,170
athenahealth, Inc. *		26,837		2,831,035
Atrion Corp.		1,011		241,629
Bio-Reference Labs, Inc. *(a)		18,058		522,418
BioScrip, Inc. *		39,935		487,207
Brookdale Senior Living, Inc. *		72,634		1,817,303
Cantel Medical Corp.		23,853		617,793
Capital Senior Living Corp. *		20,257		421,751
Cardiovascular Systems, Inc. *		14,643		300,474
Centene Corp. *		40,262		2,300,973
Chemed Corp.		13,960		972,174
Computer Programs & Systems, Inc.		7,613		418,410
CONMED Corp.		20,487		636,941
CorVel Corp. *		8,896		293,034
Cyberonics, Inc. *		16,692		849,122
Cynosure, Inc., Class A *		15,825		363,184
Dexcom, Inc. *		52,275		1,414,039
Emeritus Corp. *		27,402		597,638
Endologix, Inc. *		38,998		616,948
Exactech, Inc. *		6,147		117,039
ExamWorks Group, Inc. *		18,815		442,152
Five Star Quality Care, Inc. *		34,302		178,027
GenMark Diagnostics, Inc. *		19,424		223,376
Gentiva Health Services, Inc. *		17,375		199,291
Globus Medical, Inc., Class A *		6,477		114,125
Greatbatch, Inc. *		17,755		603,137
Greenway Medical Technologies *(a)		11,871		161,683
Haemonetics Corp. *		36,949		1,472,418
Hanger, Inc. *		25,721		789,892
Health Management Associates, Inc., Class A *		189,566		2,437,819
Health Net, Inc. *		58,574		1,767,763
HEALTHSOUTH Corp. *		64,440		2,027,282
HealthStream, Inc. *		14,729		488,266
Healthways, Inc. *		25,158		480,015
HeartWare International, Inc. *		10,083		792,524
Hill-Rom Holdings, Inc.		44,031		1,503,218
HMS Holdings Corp. *		65,552		1,638,144
ICU Medical, Inc. *		9,510		679,775
Insulet Corp. *		39,681		1,322,965
Integra LifeSciences Holdings Corp. *		15,326		622,849
Invacare Corp.		21,395		321,139
IPC The Hospitalist Co. *		12,389		637,290
Kindred Healthcare, Inc.		39,903		586,574
Landauer, Inc.		7,023		333,452
LHC Group, Inc. *		11,421		258,457
LifePoint Hospitals, Inc. *		35,008		1,583,412
Magellan Health Services, Inc. *		20,257		1,138,646
MAKO Surgical Corp. *(a)		31,127		465,349
Masimo Corp.		37,835		936,038
MedAssets, Inc. *		38,724		868,192
Medidata Solutions, Inc. *		16,692		1,492,932
Merge Healthcare, Inc. *		48,941		129,694
Meridian Bioscience, Inc.		31,335		704,724
Merit Medical Systems, Inc. *		29,626		379,213
Molina Healthcare, Inc. *		21,623		721,992
MWI Veterinary Supply, Inc. *		8,747		1,330,244
National Healthcare Corp.		6,376		294,189
National Research Corp., Class A *		6,420		105,224
Natus Medical, Inc. *		24,126		317,257
Navidea Biopharmaceuticals, Inc. *(a)		87,508		256,398
Neogen Corp. *		16,692		903,037
NuVasive, Inc. *		32,701		769,128
NxStage Medical, Inc. *		39,681		490,060
Omnicell, Inc. *		24,764		538,369
OraSure Technologies, Inc. *		45,617		218,049
Orthofix International N.V. *		14,293		315,446
Owens & Minor, Inc.		47,494		1,620,020
PharMerica Corp. *		21,873		269,038
PhotoMedex, Inc. *(a)		9,029		147,534
Quality Systems, Inc.		29,820		616,976
Quidel Corp. *		21,623		573,442
RTI Biologics, Inc. *		39,064		130,083
Select Medical Holdings Corp.		32,336		273,886
Spectranetics Corp. *		30,095		475,200
STERIS Corp.		43,929		1,796,257
SurModics, Inc. *		9,289		183,922
Symmetry Medical, Inc. *		29,595		232,321
Team Health Holdings, Inc. *		49,837		1,915,236
TearLab Corp. *(a)		18,678		245,429
Teleflex, Inc.		30,052		2,316,408
The Ensign Group, Inc.		13,104		506,470
The Providence Service Corp. *		9,712		260,670
Thoratec Corp. *		42,282		1,510,736
Tornier NV *		19,160		363,657
Triple-S Management Corp., Class B *		17,169		320,202
Universal American Corp.		27,968		204,166
US Physical Therapy, Inc.		9,029		248,568

See financial notes 95

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Vanguard Health Systems, Inc. *		24,266		508,373
Vascular Solutions, Inc. *		10,395		163,929
VCA Antech, Inc. *		66,235		1,807,553
Vocera Communications, Inc. *		5,132		83,190
Volcano Corp. *		40,514		867,810
WellCare Health Plans, Inc. *		32,940		2,097,290
West Pharmaceutical Services, Inc.		25,721		1,902,068
Wright Medical Group, Inc. *		35,348		850,826

				86,062,305

Household & Personal Products 0.6%
Central Garden & Pet Co., Class A *		33,039		206,824
Elizabeth Arden, Inc. *		18,542		643,964
Harbinger Group, Inc. *		7,802		71,700
Inter Parfums, Inc.		12,227		324,871
Lifevantage Corp. *(a)		92,182		222,159
Medifast, Inc. *		8,965		222,870
Nature’s Sunshine Products, Inc.		6,980		121,871
Nu Skin Enterprises, Inc., Class A		38,699		3,239,493
Prestige Brands Holdings, Inc. *		38,315		1,244,088
Revlon, Inc., Class A *		6,147		137,570
Spectrum Brands Holdings, Inc.		16,893		1,022,702
Star Scientific, Inc. *(a)		98,403		193,854
Synutra International, Inc. *(a)		15,568		74,726
USANA Health Sciences, Inc. *(a)		4,489		340,940
WD-40 Co.		11,078		644,518

				8,712,150

Insurance 3.5%
Allied World Assurance Co. Holdings AG		25,022		2,295,268
Ambac Financial Group, Inc. *		31,018		687,359
American Equity Investment Life Holding Co.		47,494		940,856
American National Insurance Co.		5,464		573,556
AMERISAFE, Inc.		13,960		454,956
AmTrust Financial Services, Inc. (a)		22,283		795,938
Argo Group International Holdings Ltd.		17,724		723,848
Aspen Insurance Holdings Ltd.		50,429		1,793,760
Assurant, Inc.		56,027		2,971,672
Assured Guaranty Ltd.		145,589		2,895,765
Baldwin & Lyons, Inc., Class B		6,147		145,008
Citizens, Inc. *		36,751		276,735
CNO Financial Group, Inc.		166,154		2,258,033
Crawford & Co., Class B		21,674		164,289
Donegal Group, Inc., Class A		7,706		103,877
eHealth, Inc. *		14,247		394,215
EMC Insurance Group, Inc.		4,141		115,534
Employers Holdings, Inc.		22,989		609,438
Endurance Specialty Holdings Ltd.		31,335		1,570,510
Enstar Group Ltd. *		6,147		828,431
FBL Financial Group, Inc., Class A		8,346		367,892
First American Financial Corp.		81,028		1,693,485
Global Indemnity plc *		8,586		210,615
Greenlight Capital Re Ltd., Class A *		22,306		598,916
Hilltop Holdings, Inc. *		29,031		454,625
Horace Mann Educators Corp.		29,286		771,979
Infinity Property & Casualty Corp.		8,346		505,016
Kansas City Life Insurance Co.		3,012		131,504
Kemper Corp.		39,751		1,349,546
Maiden Holdings Ltd.		38,998		510,094
MBIA, Inc. *		104,121		1,231,751
Meadowbrook Insurance Group, Inc.		37,407		223,694
Mercury General Corp.		27,237		1,195,160
Montpelier Re Holdings Ltd.		39,452		980,382
National Interstate Corp.		13,641		343,071
National Western Life Insurance Co., Class A		1,466		290,327
Old Republic International Corp.		175,670		2,494,514
OneBeacon Insurance Group Ltd., Class A		16,692		238,362
Platinum Underwriters Holdings Ltd.		23,291		1,345,754
Primerica, Inc.		34,036		1,263,757
ProAssurance Corp.		45,978		2,167,403
Protective Life Corp.		57,891		2,419,265
RLI Corp.		12,444		971,752
Safety Insurance Group, Inc.		9,378		470,213
Selective Insurance Group, Inc.		41,880		960,308
StanCorp Financial Group, Inc.		32,602		1,705,737
State Auto Financial Corp.		11,463		214,014
Stewart Information Services Corp.		13,960		427,036
Symetra Financial Corp.		54,474		940,766
The Hanover Insurance Group, Inc.		32,502		1,731,382
The Navigators Group, Inc. *		7,663		419,396
Tower Group International Ltd.		29,462		416,298
United Fire Group, Inc.		16,692		478,893

				50,121,955

Materials 5.4%
A. Schulman, Inc.		22,306		601,370
A.M. Castle & Co. *		12,780		202,052
Advanced Emissions Solutions, Inc. *		6,980		272,569
AEP Industries, Inc. *		2,732		213,752
AK Steel Holding Corp. *(a)		107,017		359,577
Allegheny Technologies, Inc.		79,764		2,130,496
Allied Nevada Gold Corp. *		61,454		285,147
AMCOL International Corp.		18,741		617,891
American Vanguard Corp.		17,891		448,706
Aptargroup, Inc.		49,940		2,936,971
Balchem Corp.		22,306		1,067,565
Berry Plastics Group, Inc. *		56,252		1,294,359
Boise Cascade Co. *		17,234		398,105
Boise, Inc.		68,434		585,111
Cabot Corp.		44,313		1,772,077
Calgon Carbon Corp. *		40,514		696,841
Carpenter Technology Corp.		32,602		1,753,010
Century Aluminum Co. *		37,878		295,827
Chemtura Corp. *		73,215		1,604,873
Clearwater Paper Corp. *		16,311		777,382
Coeur Mining, Inc. *		76,202		1,100,357
Commercial Metals Co.		88,008		1,309,559
Compass Minerals International, Inc.		24,456		1,803,141
Cytec Industries, Inc.		26,872		2,009,488
Deltic Timber Corp.		8,047		484,027

96 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Domtar Corp.		24,739		1,632,774
Eagle Materials, Inc.		33,517		2,150,451
Ferro Corp. *		64,869		476,787
Flotek Industries, Inc. *		29,969		593,087
FutureFuel Corp.		11,438		184,609
General Moly, Inc. *		44,344		73,168
Globe Specialty Metals, Inc.		47,494		610,298
Graphic Packaging Holding Co. *		138,478		1,150,752
Greif, Inc., Class A		22,407		1,207,065
H.B. Fuller Co.		37,632		1,403,297
Hawkins, Inc.		6,980		258,818
Haynes International, Inc.		9,029		399,353
Headwaters, Inc. *		55,157		472,144
Hecla Mining Co.		253,004		865,274
Horsehead Holding Corp. *		32,541		386,262
Innophos Holdings, Inc.		15,326		750,514
Intrepid Potash, Inc. (a)		40,514		503,994
Kaiser Aluminum Corp.		12,044		832,481
KapStone Paper and Packaging Corp.		29,207		1,226,694
Koppers Holdings, Inc.		15,326		594,189
Kraton Performance Polymers, Inc. *		24,355		451,785
Kronos Worldwide, Inc. (a)		16,693		247,223
Landec Corp. *		19,424		256,397
Louisiana-Pacific Corp. *		102,955		1,540,207
LSB Industries, Inc. *		13,789		413,946
Materion Corp.		13,960		410,424
McEwen Mining, Inc. *(a)		196,950		533,735
Mercer International, Inc. *		27,908		191,170
Minerals Technologies, Inc.		25,622		1,137,617
Molycorp, Inc. *(a)		92,106		561,847
Myers Industries, Inc.		22,613		419,697
Neenah Paper, Inc.		12,251		448,387
NewMarket Corp.		7,913		2,169,586
Noranda Aluminum Holding Corp.		55,221		150,753
Olin Corp.		59,225		1,368,097
OM Group, Inc. *		24,355		692,169
Omnova Solutions, Inc. *		37,989		293,275
P.H. Glatfelter Co.		32,018		820,301
PolyOne Corp.		73,466		1,985,051
Quaker Chemical Corp.		9,029		599,164
Resolute Forest Products *		70,004		882,750
RTI International Metals, Inc. *		22,989		711,969
Schnitzer Steel Industries, Inc., Class A		17,375		438,719
Schweitzer-Mauduit International, Inc.		23,090		1,322,364
Sensient Technologies Corp.		36,950		1,531,947
Silgan Holdings, Inc.		33,353		1,573,595
Sonoco Products Co.		76,126		2,834,171
Steel Dynamics, Inc.		160,444		2,448,375
Stepan Co.		13,449		759,062
Stillwater Mining Co. *		88,691		1,010,190
SunCoke Energy, Inc. *		52,275		822,286
Taminco Corp. *		11,572		228,547
Texas Industries, Inc. *		15,326		899,636
The Scotts Miracle-Gro Co., Class A		28,704		1,512,988
Tredegar Corp.		18,799		420,158
Tronox Ltd., Class A		17,375		371,130
United States Lime & Minerals, Inc. *		1,665		97,935
United States Steel Corp. (a)		106,619		1,908,480
Universal Stainless & Alloy Products, Inc. *		4,781		131,669
US Silica Holdings, Inc. (a)		24,741		581,413
Walter Energy, Inc. (a)		47,494		614,572
Wausau Paper Corp.		36,268		397,860
Worthington Industries, Inc.		39,681		1,322,568
Zep, Inc.		16,639		234,277
Zoltek Cos., Inc. *		20,171		279,167

				78,818,923

Media 1.7%
Arbitron, Inc.		19,948		938,753
Belo Corp., Class A		69,800		986,972
Carmike Cinemas, Inc. *		13,127		230,116
Central European Media Enterprises Ltd., Class A *		25,038		108,915
Cinemark Holdings, Inc.		76,434		2,252,510
Clear Channel Outdoor Holdings, Inc., Class A *		31,483		238,012
Crown Media Holdings, Inc., Class A *		27,384		84,069
Cumulus Media, Inc., Class A *		55,369		265,771
Digital Generation, Inc. *(a)		19,803		242,983
DreamWorks Animation SKG, Inc., Class A *		52,559		1,487,420
E.W. Scripps Co., Class A *		22,792		346,666
Entercom Communications Corp., Class A *		15,565		123,430
Gray Television, Inc. *		34,900		230,340
Harte-Hanks, Inc.		32,379		268,746
Hemisphere Media Group, Inc. *(a)		1,608		19,071
John Wiley & Sons, Inc., Class A		34,036		1,490,777
Journal Communications, Inc., Class A *		27,503		197,747
Live Nation Entertainment, Inc. *		106,749		1,799,788
Loral Space & Communications, Inc.		9,216		609,270
Meredith Corp.		26,480		1,138,905
Morningstar, Inc.		16,692		1,253,402
National CineMedia, Inc.		43,369		779,775
Nexstar Broadcasting Group, Inc., Class A		22,852		767,142
ReachLocal, Inc. *		7,699		84,535
Regal Entertainment Group, Class A (a)		57,107		1,021,644
Rentrak Corp. *		8,346		207,398
Saga Communications, Inc., Class A		3,415		167,881
Scholastic Corp.		19,796		584,180
Sinclair Broadcast Group, Inc., Class A		50,022		1,196,526
Starz, Class A *		83,079		2,073,652
The McClatchy Co., Class A *(a)		50,301		155,933
The New York Times Co., Class A *		91,423		1,019,366
The Washington Post Co., Class B		3,250		1,833,000
Valassis Communications, Inc.		29,286		806,829

See financial notes 97

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
World Wrestling Entertainment, Inc., Class A		22,586		220,665

				25,232,189

Pharmaceuticals, Biotechnology & Life Sciences 6.0%
ACADIA Pharmaceuticals, Inc. *		53,496		1,067,780
Achillion Pharmaceuticals, Inc. *		50,243		324,067
Acorda Therapeutics, Inc. *		31,650		1,069,453
Aegerion Pharmaceuticals, Inc. *		11,410		989,019
Affymetrix, Inc. *		52,282		291,211
Agios Pharmaceuticals, Inc. *(a)		4,400		103,752
Akorn, Inc. *		51,028		916,973
Alkermes plc *		99,346		3,154,235
Alnylam Pharmaceuticals, Inc. *		36,949		1,913,958
AMAG Pharmaceuticals, Inc. *		15,913		376,502
Arena Pharmaceuticals, Inc. *(a)		163,422		1,047,535
ARIAD Pharmaceuticals, Inc. *		136,868		2,545,745
Array BioPharma, Inc. *		86,320		484,255
Astex Pharmaceuticals *		64,869		424,892
Auxilium Pharmaceuticals, Inc. *		36,901		643,922
AVANIR Pharmaceuticals, Inc., Class A *		112,759		575,071
AVEO Pharmaceuticals, Inc. *		27,237		57,742
Bio-Rad Laboratories, Inc., Class A *		14,643		1,669,448
Biotime, Inc. *(a)		21,623		81,735
Bluebird Bio, Inc. *(a)		4,348		108,265
Bruker Corp. *		67,751		1,357,730
Cadence Pharmaceuticals, Inc. *		44,764		243,964
Cambrex Corp. *		22,989		313,340
Celldex Therapeutics, Inc. *		58,572		1,272,184
Cepheid, Inc. *		48,860		1,748,211
Charles River Laboratories International, Inc. *		36,266		1,670,049
ChemoCentryx, Inc. *		13,546		109,723
Chimerix, Inc. *		3,830		60,361
Clovis Oncology, Inc. *		15,649		1,009,361
Cubist Pharmaceuticals, Inc. *		47,494		3,009,220
Curis, Inc. *(a)		63,641		278,748
Dendreon Corp. *(a)		117,977		335,055
Depomed, Inc. *		45,700		327,669
Dyax Corp. *		82,056		366,790
Dynavax Technologies Corp. *		145,238		184,452
Emergent Biosolutions, Inc. *		20,577		361,744
Enanta Pharmaceuticals, Inc. *		2,055		38,182
Endocyte, Inc. *		21,802		313,077
Epizyme, Inc. *(a)		3,892		108,003
Exact Sciences Corp. *		47,719		552,109
Exelixis, Inc. *(a)		138,234		692,552
Fluidigm Corp. *		16,009		327,544
Furiex Pharmaceuticals, Inc. *		4,098		157,609
Genomic Health, Inc. *		13,523		426,245
GTx, Inc. *(a)		18,058		27,990
Halozyme Therapeutics, Inc. *		64,083		532,530
Hi-Tech Pharmacal Co., Inc.		8,710		375,488
Hyperion Therapeutics, Inc. *		4,683		114,172
Idenix Pharmaceuticals, Inc. *(a)		74,286		355,087
ImmunoGen, Inc. *		63,503		1,016,048
Impax Laboratories, Inc. *		48,593		990,325
Incyte Corp. *		100,452		3,404,318
Infinity Pharmaceuticals, Inc. *		31,065		575,013
Intercept Pharmaceuticals, Inc. *		7,321		334,863
InterMune, Inc. *		59,255		846,754
Intrexon Corp. *(a)		7,700		167,321
Ironwood Pharmaceuticals, Inc. *		67,909		791,140
Isis Pharmaceuticals, Inc. *		83,421		2,154,764
Jazz Pharmaceuticals plc *		36,870		3,233,130
Keryx Biopharmaceuticals, Inc. *		59,938		511,271
KYTHERA Biopharmaceuticals, Inc. *		3,241		85,562
Lexicon Pharmaceuticals, Inc. *		387,615		965,161
Ligand Pharmaceuticals, Inc., Class B *		15,326		737,027
Luminex Corp. *		28,339		575,282
MannKind Corp. *(a)		115,973		671,484
Merrimack Pharmaceuticals, Inc. *(a)		18,945		64,034
MiMedx Group, Inc. *(a)		52,932		326,590
Momenta Pharmaceuticals, Inc. *		30,652		431,887
Myriad Genetics, Inc. *		58,572		1,532,829
Nektar Therapeutics *		87,175		1,061,791
Neurocrine Biosciences, Inc. *		44,705		651,352
NewLink Genetics Corp. *(a)		11,761		203,583
Novavax, Inc. *		107,176		337,604
NPS Pharmaceuticals, Inc. *		65,252		1,637,825
OncoMed Pharmaceuticals, Inc. *		3,600		58,428
Onconova Therapeutics, Inc. *(a)		3,800		92,492
Opko Health, Inc. *(a)		156,604		1,447,021
Optimer Pharmaceuticals, Inc. *(a)		35,608		445,456
Orexigen Therapeutics, Inc. *		53,641		367,977
Organovo Holdings, Inc. *(a)		43,400		247,814
Osiris Therapeutics, Inc. *(a)		12,251		213,780
Pacira Pharmaceuticals, Inc. *		15,488		560,975
PAREXEL International Corp. *		41,880		1,944,488
PDL BioPharma, Inc. (a)		106,066		842,164
Peregrine Pharmaceuticals, Inc. *(a)		90,740		124,314
Pernix Therapeutics Holdings *		8,346		22,868
Portola Pharmaceuticals, Inc. *		6,238		140,979
PTC Therapeutics, Inc. *(a)		6,090		109,255
Puma Biotechnology, Inc. *		6,174		312,651
Questcor Pharmaceuticals, Inc.		43,247		2,883,710
Raptor Pharmaceutical Corp. *(a)		40,514		548,560
Receptos, Inc. *		3,824		60,572
Rigel Pharmaceuticals, Inc. *		70,925		223,414
Sagent Pharmaceuticals, Inc. *		9,732		214,688
Salix Pharmaceuticals Ltd. *		38,416		2,571,567
Sangamo BioSciences, Inc. *(a)		39,666		391,503
Santarus, Inc. *		44,049		991,983
Sarepta Therapeutics, Inc. *(a)		22,313		761,543
Sciclone Pharmaceuticals, Inc. *		38,998		204,740
Sequenom, Inc. *(a)		85,251		248,933
Spectrum Pharmaceuticals, Inc. (a)		38,460		294,604
Sunesis Pharmaceuticals, Inc. *(a)		22,989		110,577
Supernus Pharmaceuticals, Inc. *(a)		9,029		59,772
Synageva BioPharma Corp. *		7,180		336,814
Synergy Pharmaceuticals, Inc. *(a)		52,653		233,779
Synta Pharmaceuticals Corp. *(a)		31,335		184,877
Techne Corp.		25,721		1,993,635
TESARO, Inc. *		9,198		318,067
The Medicines Co. *		45,614		1,441,859
TherapeuticsMD, Inc. *(a)		21,936		45,627

98 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Theravance, Inc. *		51,379		1,841,937
Threshold Pharmaceuticals, Inc. *		30,780		133,893
Trius Therapeutics, Inc. *		22,255		304,226
United Therapeutics Corp. *		34,036		2,413,493
Vical, Inc. *		50,226		64,792
ViroPharma, Inc. *		48,860		1,473,129
VIVUS, Inc. *(a)		75,414		944,937
XenoPort, Inc. *		35,148		171,874
XOMA Corp. *(a)		63,503		296,559
ZIOPHARM Oncology, Inc. *(a)		64,891		194,024

				86,712,057

Real Estate 8.7%
Acadia Realty Trust		40,085		935,183
AG Mortgage Investment Trust, Inc.		20,257		355,713
Agree Realty Corp.		8,654		234,523
Alexander & Baldwin, Inc. *		32,018		1,151,687
Alexander’s, Inc.		1,873		513,071
Altisource Portfolio Solutions S.A. *		10,262		1,338,165
Altisource Residential Corp. *		15,268		289,329
American Assets Trust, Inc.		25,038		741,375
American Capital Mortgage Investment Corp.		42,563		852,962
American Homes 4 Rent, Class A *		33,000		524,040
American Residential Properties, Inc. *(a)		10,264		175,104
AmREIT, Inc., Class B		12,599		212,545
Anworth Mortgage Asset Corp.		106,749		472,898
Apollo Commercial Real Estate Finance, Inc.		25,038		376,071
Apollo Residential Mortgage, Inc.		23,127		351,762
ARMOUR Residential REIT, Inc.		282,082		1,179,103
Ashford Hospitality Trust Inc.		53,001		611,102
Associated Estates Realty Corp.		37,085		510,660
Aviv REIT, Inc. (a)		9,840		223,565
BioMed Realty Trust, Inc.		140,325		2,583,383
Brandywine Realty Trust		115,240		1,477,377
Campus Crest Communities, Inc.		47,739		505,079
CapLease, Inc.		65,609		558,333
Capstead Mortgage Corp.		70,557		828,339
Cedar Realty Trust, Inc.		44,782		218,536
Chesapeake Lodging Trust		36,266		798,215
Chimera Investment Corp.		746,560		2,194,886
Colonial Properties Trust		61,174		1,351,334
Colony Financial, Inc.		47,768		944,373
CommonWealth REIT		87,427		2,146,333
Coresite Realty Corp.		15,914		484,263
Corporate Office Properties Trust		64,096		1,460,107
Cousins Properties, Inc.		124,426		1,235,550
CubeSmart		91,423		1,522,193
CyrusOne, Inc.		12,976		247,323
CYS Investments, Inc.		129,027		990,927
DCT Industrial Trust, Inc.		228,866		1,531,114
DiamondRock Hospitality Co.		144,436		1,399,585
Douglas Emmett, Inc.		96,222		2,222,728
DuPont Fabros Technology, Inc.		47,551		1,083,687
EastGroup Properties, Inc.		22,306		1,253,597
Education Realty Trust, Inc.		85,126		731,232
EPR Properties		34,217		1,675,949
Equity Lifestyle Properties, Inc.		58,572		2,035,377
Equity One, Inc.		46,661		992,013
Excel Trust, Inc.		33,562		391,333
FelCor Lodging Trust, Inc. *		82,634		455,313
First Industrial Realty Trust, Inc.		72,882		1,102,705
First Potomac Realty Trust		42,263		525,752
Forest City Enterprises, Inc., Class A *		110,058		1,970,038
Forestar Group, Inc. *		26,112		521,195
Franklin Street Properties Corp.		63,659		775,367
Getty Realty Corp.		19,933		363,977
Glimcher Realty Trust		107,432		1,063,577
Government Properties Income Trust		39,881		932,418
Hatteras Financial Corp.		72,985		1,335,625
Healthcare Realty Trust, Inc.		70,818		1,592,697
Healthcare Trust of America, Inc.		40,112		413,154
Hersha Hospitality Trust		129,811		680,210
Highwoods Properties, Inc.		65,771		2,221,744
Home Properties, Inc.		40,857		2,357,449
Hospitality Properties Trust		101,460		2,741,449
Hudson Pacific Properties, Inc.		32,018		638,759
Inland Real Estate Corp.		63,991		627,752
Invesco Mortgage Capital, Inc.		99,086		1,517,007
Investors Real Estate Trust		70,483		574,436
iStar Financial, Inc. *		55,157		611,140
Kennedy-Wilson Holdings, Inc.		39,246		723,696
Kite Realty Group Trust		59,599		343,886
LaSalle Hotel Properties		70,585		1,872,620
Lexington Realty Trust		135,246		1,585,083
LTC Properties, Inc.		25,537		904,776
Mack-Cali Realty Corp.		61,656		1,331,770
Medical Properties Trust, Inc.		110,909		1,280,999
MFA Financial, Inc.		267,029		1,922,609
Mid-America Apartment Communities, Inc.		31,473		1,940,625
Monmouth Real Estate Investment Corp., Class A		33,194		298,082
National Health Investors, Inc.		18,058		991,384
New York Mortgage Trust, Inc. (a)		47,270		285,511
NorthStar Realty Finance Corp.		171,903		1,505,870
OMEGA Healthcare Investors, Inc.		83,726		2,377,818
One Liberty Properties, Inc.		8,346		178,354
Parkway Properties, Inc.		31,029		507,324
Pebblebrook Hotel Trust		45,978		1,177,037
Pennsylvania REIT		46,557		863,632
Pennymac Mortgage Investment Trust		51,929		1,093,105
Piedmont Office Realty Trust, Inc., Class A		123,795		2,126,798
Post Properties, Inc.		40,233		1,819,739
Potlatch Corp.		29,286		1,129,268
PS Business Parks, Inc.		13,127		953,939
RAIT Financial Trust		51,714		319,593
Ramco-Gershenson Properties Trust		44,069		638,119
Redwood Trust, Inc. (a)		61,454		1,093,267
Resource Capital Corp.		93,817		546,015
Retail Opportunity Investments Corp.		42,674		552,202

See financial notes 99

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Retail Properties of America, Inc., Class A		23,784		317,279
Rexford Industrial Realty, Inc. *		11,700		154,206
RLJ Lodging Trust		90,284		2,074,726
Rouse Properties, Inc. (a)		16,823		311,898
Ryman Hospitality Properties, Inc.		38,155		1,260,641
Sabra Health Care REIT, Inc.		27,920		617,311
Saul Centers, Inc.		9,378		407,099
Select Income REIT		23,421		569,833
Silver Bay Realty Trust Corp.		23,133		364,807
Sovran Self Storage, Inc.		22,989		1,523,481
Spirit Realty Capital, Inc.		255,237		2,223,114
STAG Industrial, Inc.		30,652		613,040
Starwood Property Trust, Inc.		121,835		3,037,347
Strategic Hotels & Resorts, Inc. *		133,986		1,086,626
Summit Hotel Properties, Inc.		48,961		467,088
Sun Communities, Inc.		24,429		1,049,714
Sunstone Hotel Investors, Inc. *		120,026		1,443,913
Tanger Factory Outlet Centers		69,701		2,150,276
Tejon Ranch Co. *		11,022		327,464
The Geo Group, Inc.		52,859		1,649,729
The Howard Hughes Corp. *		21,222		2,168,888
The St. Joe Co. *		68,154		1,316,054
Thomas Properties Group, Inc.		23,672		130,196
Universal Health Realty Income Trust		9,385		376,432
Urstadt Biddle Properties, Inc., Class A		18,875		368,629
Washington REIT		49,543		1,206,867
Western Asset Mortgage Capital Corp. (a)		16,692		260,562
Whitestone REIT		12,444		176,456
Winthrop Realty Trust		23,800		282,744

				125,233,329

Retailing 4.9%
1-800-FLOWERS.COM, Inc., Class A *		19,806		107,745
Aaron’s, Inc.		52,958		1,433,573
Aeropostale, Inc. *		58,572		476,190
America’s Car-Mart, Inc. *		6,477		265,557
Ann, Inc. *		34,720		1,204,784
Asbury Automotive Group, Inc. *		22,990		1,129,499
Ascena Retail Group, Inc. *		94,025		1,534,488
Barnes & Noble, Inc. *		28,366		387,763
bebe stores, Inc.		29,533		170,701
Big 5 Sporting Goods Corp.		13,477		225,470
Big Lots, Inc. *		42,563		1,507,581
Blue Nile, Inc. *		9,065		327,972
Brown Shoe Co., Inc.		27,920		625,966
Cabela’s, Inc. *		33,718		2,209,540
Chico’s FAS, Inc.		119,901		1,870,456
Christopher & Banks Corp. *		28,603		158,461
Conn’s, Inc. *		16,607		1,106,192
Core-Mark Holding Co., Inc.		8,532		538,369
Destination Maternity Corp.		9,029		250,735
DSW, Inc., Class A		23,873		2,055,226
Express, Inc. *		63,026		1,322,916
Five Below, Inc. *		30,384		1,116,612
Francesca’s Holdings Corp. *		32,694		788,579
Fred’s, Inc., Class A		25,348		396,189
GameStop Corp., Class A (a)		87,366		4,386,647
Genesco, Inc. *		17,576		1,084,088
GNC Holdings, Inc., Class A		52,841		2,688,022
Gordmans Stores, Inc. *		7,035		97,224
Group 1 Automotive, Inc.		16,009		1,228,371
Groupon, Inc. *		196,371		1,995,129
Guess?, Inc.		45,096		1,375,428
Haverty Furniture Cos., Inc.		14,732		356,662
hhgregg, Inc. *		11,191		202,669
Hibbett Sports, Inc. *		19,258		997,564
HomeAway, Inc. *		24,355		768,157
HSN, Inc.		26,404		1,422,119
Jos. A. Bank Clothiers, Inc. *		20,940		832,993
Liberty Ventures, Series A *		26,178		2,241,884
Lithia Motors, Inc., Class A		15,343		1,006,808
Lumber Liquidators Holdings, Inc. *		19,757		1,964,241
MarineMax, Inc. *		19,213		235,167
Mattress Firm Holding Corp. *		5,774		237,311
Monro Muffler Brake, Inc.		21,623		957,250
New York & Co., Inc. *		21,671		106,188
Nutrisystem, Inc.		23,456		296,953
Office Depot, Inc. *		215,014		900,909
OfficeMax, Inc.		64,869		705,126
Orbitz Worldwide, Inc. *		18,829		179,064
Overstock.com, Inc. *		10,377		291,905
Penske Automotive Group, Inc.		32,018		1,249,662
PetMed Express, Inc.		15,519		236,975
Pier 1 Imports, Inc.		77,054		1,689,024
Pool Corp.		34,900		1,817,941
RadioShack Corp. *(a)		73,654		240,849
Rent-A-Center, Inc.		41,880		1,570,919
Restoration Hardware Holdings, Inc. *		19,714		1,370,714
RetailMeNot, Inc. *		6,700		214,132
rue21, Inc. *		11,623		474,799
Saks, Inc. *		76,097		1,212,225
Sears Hometown and Outlet Stores, Inc. *		6,155		197,452
Select Comfort Corp. *		41,017		1,013,120
Shoe Carnival, Inc.		10,534		267,458
Shutterfly, Inc. *		22,989		1,194,508
Sonic Automotive, Inc., Class A		25,391		553,270
Stage Stores, Inc.		22,306		415,561
Stein Mart, Inc.		21,650		263,047
Systemax, Inc.		9,058		82,337
The Bon-Ton Stores, Inc. (a)		7,663		84,370
The Buckle, Inc. (a)		20,352		1,053,826
The Cato Corp., Class A		19,842		499,225
The Children’s Place Retail Stores, Inc. *		16,593		882,416
The Finish Line, Inc., Class A		37,632		788,767
The Men’s Wearhouse, Inc.		36,081		1,358,450
The Pep Boys-Manny, Moe & Jack *		39,687		445,685
The Wet Seal, Inc., Class A *		65,904		240,550
Tile Shop Holdings, Inc. *		18,645		495,398
Tilly’s, Inc., Class A *		8,418		116,253
Tuesday Morning Corp. *		32,018		394,142
Vitacost.com, Inc. *		15,326		126,286
Vitamin Shoppe, Inc. *		21,623		910,761
VOXX International Corp. *		16,044		195,095

100 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number			Value
Security	of Shares			($)
West Marine, Inc. *		11,761			133,605
Weyco Group, Inc.		4,914			122,604
Winmark Corp.		1,366			98,967
Zumiez, Inc. *		15,697			419,110

					70,197,946

Semiconductors & Semiconductor Equipment 3.0%
Advanced Energy Industries, Inc. *		26,404			481,345
Advanced Micro Devices, Inc. *(a)		449,020			1,468,295
Amkor Technology, Inc. *		91,471			366,799
Applied Micro Circuits Corp. *		46,872			504,343
Atmel Corp. *		311,607			2,262,267
ATMI, Inc. *		23,672			581,148
Brooks Automation, Inc.		50,226			441,989
Cabot Microelectronics Corp. *		17,375			627,585
Cavium, Inc. *		37,632			1,428,887
CEVA, Inc. *		17,454			316,441
Cirrus Logic, Inc. *		46,732			1,051,470
Cohu, Inc.		18,510			183,804
Cypress Semiconductor Corp. *		101,285			1,146,546
Diodes, Inc. *		26,404			657,460
Entegris, Inc. *		104,017			977,760
Entropic Communications, Inc. *		55,840			233,411
Exar Corp. *		34,217			418,132
Fairchild Semiconductor International, Inc. *		95,671			1,168,143
First Solar, Inc. *		49,087			1,802,475
FormFactor, Inc. *		40,039			243,037
GT Advanced Technologies, Inc. *(a)		77,463			500,411
Hittite Microwave Corp. *		20,257			1,238,918
Inphi Corp. *		13,984			177,876
Integrated Device Technology, Inc. *		108,948			948,937
Integrated Silicon Solution, Inc. *		20,940			217,985
Intermolecular, Inc. *		11,852			70,993
International Rectifier Corp. *		52,275			1,248,327
Intersil Corp., Class A		94,988			985,025
IXYS Corp.		13,959			129,400
Kulicke & Soffa Industries, Inc. *		56,523			625,144
Lattice Semiconductor Corp. *		88,008			418,918
LTX-Credence Corp. *		31,335			127,220
M/A-COM Technology Solutions Holdings, Inc. *		9,863			161,359
Micrel, Inc.		32,018			294,566
Microsemi Corp. *		68,434			1,761,491
MKS Instruments, Inc.		39,681			994,009
Monolithic Power Systems, Inc.		24,355			745,750
Nanometrics, Inc. *		15,458			220,895
NVE Corp. *		3,415			168,428
OmniVision Technologies, Inc. *		37,632			581,414
PDF Solutions, Inc. *		18,058			358,451
Peregrine Semiconductor Corp. *(a)		11,071			121,892
Photronics, Inc. *		48,512			353,167
PMC-Sierra, Inc. *		151,511			943,913
Power Integrations, Inc.		21,623			1,126,991
Rambus, Inc. *		77,463			632,098
RF Micro Devices, Inc. *		210,233			1,042,756
Rudolph Technologies, Inc. *		24,109			249,528
Semtech Corp. *		50,226			1,492,717
Silicon Image, Inc. *		57,935			314,008
Silicon Laboratories, Inc. *		28,603			1,106,650
Spansion, Inc., Class A *		34,900			361,913
SunEdison, Inc. *		173,817			1,279,293
SunPower Corp. *(a)		24,687			530,524
Supertex, Inc.		8,495			195,895
Teradyne, Inc. *		138,337			2,123,473
Tessera Technologies, Inc.		39,681			727,749
TriQuint Semiconductor, Inc. *		121,542			916,427
Ultratech, Inc. *		20,257			572,868
Veeco Instruments, Inc. *		29,286			1,028,524
Volterra Semiconductor Corp. *		18,415			422,072

					43,879,312

Software & Services 7.7%
Accelrys, Inc. *		42,563			384,770
ACI Worldwide, Inc. *		29,490			1,435,278
Actuate Corp. *		34,945			242,868
Acxiom Corp. *		54,576			1,357,851
Advent Software, Inc.		29,572			798,148
Angie’s List, Inc. *(a)		25,038			524,796
AOL, Inc. *		57,889			1,906,285
Aspen Technology, Inc. *		69,219			2,313,991
Bankrate, Inc. *		29,988			515,794
Bazaarvoice, Inc. *		28,699			307,079
Blackbaud, Inc.		34,123			1,229,110
Blackhawk Network Holdings, Inc. *		7,244			177,550
Blucora, Inc. *		30,652			613,653
Booz Allen Hamilton Holding Corp.		27,501			556,345
Bottomline Technologies (de), Inc. *		26,474			720,622
Broadridge Financial Solutions, Inc.		88,178			2,624,177
BroadSoft, Inc. *		20,940			674,059
CACI International, Inc., Class A *		17,044			1,148,766
Carbonite, Inc. *		7,903			121,706
Cardtronics, Inc. *		33,384			1,158,091
Cass Information Systems, Inc.		7,013			368,042
ChannelAdvisor Corp. *		4,192			128,359
CIBER, Inc. *		52,559			191,315
CommVault Systems, Inc. *		31,518			2,642,154
Computer Task Group, Inc.		10,395	��		185,863
Compuware Corp.		157,712			1,682,787
comScore, Inc. *		24,355			693,874
Comverse, Inc. *		16,009			484,272
Constant Contact, Inc. *		22,601			432,357
Convergys Corp.		77,566			1,367,489
CoreLogic, Inc. *		70,488			1,811,542
Cornerstone OnDemand, Inc. *		23,672			1,219,345
CoStar Group, Inc. *		19,675			2,921,934
CSG Systems International, Inc.		25,038			589,395
Cyan, Inc. *(a)		5,936			55,205
Dealertrack Technologies, Inc. *		32,018			1,267,593
Demand Media, Inc. *		28,612			185,406
Demandware, Inc. *		6,477			272,552
Dice Holdings, Inc. *		37,632			313,475
Digital River, Inc. *		26,032			449,833
DST Systems, Inc.		22,306			1,591,979
E2open, Inc. *(a)		3,591			72,646

See financial notes 101

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
EarthLink, Inc.		76,780		377,758
Ebix, Inc. (a)		23,586		268,173
Ellie Mae, Inc. *		7,883		228,922
Envestnet, Inc. *		18,428		509,166
EPAM Systems, Inc. *		11,548		369,305
EPIQ Systems, Inc.		25,532		312,767
ePlus, Inc.		2,732		141,927
Euronet Worldwide, Inc. *		34,520		1,185,762
EVERTEC, Inc.		18,667		445,581
Exlservice Holdings, Inc. *		19,424		526,585
Fair Isaac Corp.		26,404		1,322,312
Forrester Research, Inc.		9,750		321,555
Gigamon, Inc. *		4,974		168,121
Global Cash Access Holdings, Inc. *		49,071		377,847
Global Eagle Entertainment, Inc. *		30,636		270,516
Gogo, Inc. *(a)		7,524		85,021
Guidance Software, Inc. *		9,712		81,775
Guidewire Software, Inc. *		21,623		993,793
Heartland Payment Systems, Inc.		26,756		988,634
Higher One Holdings, Inc. *		26,412		195,977
iGate Corp. *		22,989		536,793
Imperva, Inc. *		8,586		405,259
Infoblox, Inc. *		30,077		1,049,687
Interactive Intelligence Group, Inc. *		11,078		652,494
Internap Network Services Corp. *		39,681		289,274
IntraLinks Holdings, Inc. *		30,002		234,616
j2 Global, Inc.		31,819		1,566,768
Jive Software, Inc. *		20,445		253,314
Lender Processing Services, Inc.		63,503		2,025,746
Limelight Networks, Inc. *		51,391		103,810
Lionbridge Technologies, Inc. *		48,209		169,214
Liquidity Services, Inc. *(a)		18,741		555,483
LivePerson, Inc. *		37,632		350,730
LogMeIn, Inc. *		16,729		498,357
Manhattan Associates, Inc. *		14,643		1,281,262
ManTech International Corp., Class A		17,375		494,319
Marin Software, Inc. *		3,830		50,556
Marketo, Inc. *(a)		4,474		156,948
MAXIMUS, Inc.		50,156		1,881,352
Mentor Graphics Corp.		71,166		1,577,039
MicroStrategy, Inc., Class A *		6,147		564,356
Millennial Media, Inc. *(a)		10,592		69,378
Model N, Inc. *(a)		3,425		49,354
MoneyGram International, Inc. *		13,941		282,445
Monotype Imaging Holdings, Inc.		27,920		718,940
Monster Worldwide, Inc. *		88,691		399,109
Move, Inc. *		29,969		434,550
Netscout Systems, Inc. *		27,237		676,567
NeuStar, Inc., Class A *		47,779		2,414,751
NIC, Inc.		43,929		977,860
OpenTable, Inc. *		16,793		1,251,750
Pandora Media, Inc. *		73,716		1,357,849
Pegasystems, Inc.		13,127		483,730
Perficient, Inc. *		26,412		426,026
Progress Software Corp. *		40,719		995,987
Proofpoint, Inc. *		10,142		292,191
PROS Holdings, Inc. *		14,643		480,290
PTC, Inc. *		86,811		2,263,163
QLIK Technologies, Inc. *		55,840		1,830,994
Qualys, Inc. *		5,961		119,160
QuinStreet, Inc. *		18,058		157,285
Rally Software Development Corp. *		8,850		228,595
RealNetworks, Inc. *		19,694		150,659
RealPage, Inc. *		27,081		560,847
Responsys, Inc. *		22,443		322,057
Rosetta Stone, Inc. *		9,867		152,346
Rovi Corp. *		76,300		1,368,059
Sapient Corp. *		83,077		1,242,001
SciQuest, Inc. *		11,761		244,629
SeaChange International, Inc. *		19,196		191,960
ServiceSource International, Inc. *		40,546		491,012
Shutterstock, Inc. *		3,241		160,883
Silver Spring Networks, Inc. *(a)		3,465		70,651
Sourcefire, Inc. *		22,989		1,734,750
Splunk, Inc. *		20,257		1,118,389
SPS Commerce, Inc. *		10,292		641,603
SS&C Technologies Holdings, Inc. *		41,939		1,484,221
Stamps.com, Inc. *		10,395		435,343
Sykes Enterprises, Inc. *		29,286		498,741
Synchronoss Technologies, Inc. *		20,257		696,436
Syntel, Inc.		12,444		894,350
Tableau Software, Inc., Class A *		5,938		429,377
Take-Two Interactive Software, Inc. *		69,117		1,268,988
Tangoe, Inc. *		23,304		484,490
TeleNav, Inc. *		12,240		66,341
TeleTech Holdings, Inc. *		16,092		393,771
Textura Corp. *		3,710		140,794
The Active Network, Inc. *		28,705		281,309
TiVo, Inc. *		93,472		1,090,818
Travelzoo, Inc. *		6,163		166,463
Tremor Video, Inc. *		5,008		39,864
Trulia, Inc. *		13,135		545,365
Tyler Technologies, Inc. *		20,257		1,496,790
Ultimate Software Group, Inc. *		20,839		2,921,836
Unisys Corp. *		33,384		839,941
United Online, Inc.		68,255		535,802
ValueClick, Inc. *		53,641		1,135,044
VASCO Data Security International, Inc. *		22,306		176,217
Verint Systems, Inc. *		38,998		1,292,784
VirnetX Holding Corp. *(a)		31,335		606,332
Virtusa Corp. *		15,326		403,380
Vocus, Inc. *		13,926		128,676
Vringo, Inc. *(a)		39,681		124,202
Web.com Group, Inc. *		21,343		602,299
WebMD Health Corp. *		36,168		1,136,399
WEX, Inc. *		28,103		2,249,083
XO Group, Inc. *		20,552		245,802
Xoom Corp. *(a)		4,781		128,561
Yelp, Inc. *		12,249		636,703
Zillow, Inc., Class A *		16,378		1,579,658
Zynga, Inc., Class A *		361,061		1,021,803

				112,145,033

Technology Hardware & Equipment 4.9%
ADTRAN, Inc.		43,733		1,054,840
Aeroflex Holding Corp. *		14,717		103,313

102 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Anaren, Inc. *		9,009		221,441
Anixter International, Inc. *		20,257		1,692,675
ARRIS Group, Inc. *		85,809		1,344,627
Aruba Networks, Inc. *		80,195		1,333,643
Audience, Inc. *		4,236		44,309
Avid Technology, Inc. *		24,126		130,039
AVX Corp.		35,553		457,567
Badger Meter, Inc.		10,610		478,299
Belden, Inc.		32,502		1,843,513
Benchmark Electronics, Inc. *		40,234		883,941
Black Box Corp.		11,841		314,615
Brocade Communications Systems, Inc. *		328,324		2,429,598
CalAmp Corp. *		23,672		387,984
Calix, Inc. *		24,159		310,443
CDW Corp. *		17,365		380,814
Checkpoint Systems, Inc. *		30,615		449,122
Ciena Corp. *		76,097		1,515,852
Cognex Corp.		29,969		1,707,634
Coherent, Inc.		18,058		1,013,596
Comtech Telecommunications Corp.		12,039		288,575
Control4 Corp. *		2,900		58,812
Cray, Inc. *		27,237		666,217
CTS Corp.		24,722		344,130
Daktronics, Inc.		27,470		293,654
Diebold, Inc.		47,494		1,343,130
Digi International, Inc. *		20,999		195,081
Dolby Laboratories, Inc., Class A (a)		35,583		1,118,374
DTS, Inc. *		13,444		269,687
EchoStar Corp., Class A *		29,286		1,179,054
Electro Rent Corp.		14,643		248,931
Electro Scientific Industries, Inc.		20,422		224,438
Electronics for Imaging, Inc. *		34,402		1,007,291
Emulex Corp. *		71,186		512,539
Extreme Networks, Inc. *		65,325		243,662
Fabrinet *		17,511		244,454
FARO Technologies, Inc. *		12,444		462,046
FEI Co.		30,720		2,404,762
Finisar Corp. *		69,797		1,428,745
Fusion-io, Inc. *(a)		52,387		560,017
Globecomm Systems, Inc. *		17,375		241,512
GSI Group, Inc. *		21,788		183,673
Harmonic, Inc. *		75,078		530,801
Infinera Corp. *		84,443		782,787
Ingram Micro, Inc., Class A *		108,514		2,398,159
Insight Enterprises, Inc. *		33,384		637,968
InterDigital, Inc.		29,969		1,065,098
Intermec, Inc. *		41,458		409,190
InvenSense, Inc. *(a)		28,193		503,809
IPG Photonics Corp. (a)		21,623		1,162,452
Itron, Inc. *		28,603		1,071,468
Ixia *		38,315		556,334
KEMET Corp. *		36,431		149,367
Lexmark International, Inc., Class A		46,530		1,589,465
Littelfuse, Inc.		16,247		1,198,541
Maxwell Technologies, Inc. *		23,485		207,607
Measurement Specialties, Inc. *		11,459		542,469
Methode Electronics, Inc.		26,336		629,167
MTS Systems Corp.		11,761		707,659
Multi-Fineline Electronix, Inc. *		7,929		119,411
NETGEAR, Inc. *		28,603		827,771
Newport Corp. *		28,830		442,252
Oplink Communications, Inc. *		14,052		261,227
OSI Systems, Inc. *		13,960		1,014,892
Park Electrochemical Corp.		14,215		378,688
PC Connection, Inc.		12,885		191,342
Plantronics, Inc.		31,029		1,340,453
Plexus Corp. *		23,672		775,021
Polycom, Inc. *		127,464		1,265,718
Procera Networks, Inc. *		14,643		189,627
QLogic Corp. *		67,751		717,483
Quantum Corp. *		192,864		277,724
RealD, Inc. *(a)		32,701		267,821
Riverbed Technology, Inc. *		120,962		1,867,653
Rofin-Sinar Technologies, Inc. *		20,940		470,941
Rogers Corp. *		12,533		695,206
Ruckus Wireless, Inc. *(a)		6,405		87,044
Sanmina Corp. *		62,820		1,022,081
ScanSource, Inc. *		20,503		635,183
ShoreTel, Inc. *		42,655		209,436
Silicon Graphics International Corp. *		26,412		389,313
Sonus Networks, Inc. *		210,374		725,790
STEC, Inc. *		30,832		209,966
Super Micro Computer, Inc. *		21,164		271,746
Synaptics, Inc. *		22,989		888,755
SYNNEX Corp. *		19,623		932,289
Tech Data Corp. *		27,237		1,338,971
Tellabs, Inc.		250,747		556,658
TTM Technologies, Inc. *		39,439		376,248
Ubiquiti Networks, Inc.		14,193		497,607
Universal Display Corp. *		28,603		989,950
ViaSat, Inc. *		30,170		1,922,734
Viasystems Group, Inc. *		3,452		48,742
Vishay Intertechnology, Inc. *		99,086		1,213,803
Zebra Technologies Corp., Class A *		37,533		1,711,505
Zygo Corp. *		13,944		192,567

				71,082,608

Telecommunication Services 0.7%
8x8, Inc. *		50,226		464,590
Atlantic Tele-Network, Inc.		6,980		329,735
Boingo Wireless, Inc. *		10,487		74,982
Cbeyond, Inc. *		22,989		150,808
Cincinnati Bell, Inc. *		154,243		461,187
Cogent Communications Group, Inc.		31,401		974,373
Consolidated Communications Holdings, Inc.		27,920		465,706
Fairpoint Communications, Inc. *(a)		21,232		198,307
General Communication, Inc., Class A *		23,672		211,864
IDT Corp., Class B		12,741		211,755
inContact, Inc. *		38,315		311,501
Intelsat S.A. *		13,988		319,346
Iridium Communications, Inc. *		43,520		291,149
Leap Wireless International, Inc. *		37,204		564,757
NII Holdings, Inc. *(a)		114,209		682,970
NTELOS Holdings Corp.		11,842		196,814

See financial notes 103

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Premiere Global Services, Inc. *		33,384		323,157
Shenandoah Telecommunications Co.		16,365		280,660
Straight Path Communications, Inc., Class B *		6,370		32,742
Telephone & Data Systems, Inc.		74,014		2,049,448
United States Cellular Corp.		10,395		444,698
USA Mobility, Inc.		16,009		226,047
Vonage Holdings Corp. *		117,977		368,088

				9,634,684

Transportation 2.3%
Air Transport Services Group, Inc. *		39,446		252,849
Alaska Air Group, Inc.		51,845		2,935,464
Allegiant Travel Co.		11,078		1,046,982
AMERCO		5,363		877,387
Arkansas Best Corp.		17,570		437,142
Atlas Air Worldwide Holdings, Inc. *		18,058		834,280
Avis Budget Group, Inc. *		79,582		2,130,410
Celadon Group, Inc.		16,796		304,679
Con-way, Inc.		41,880		1,742,208
Echo Global Logistics, Inc. *		10,449		226,221
Forward Air Corp.		20,940		771,220
Hawaiian Holdings, Inc. *		42,606		298,242
Heartland Express, Inc.		34,287		477,275
Hub Group, Inc., Class A *		26,404		980,909
JetBlue Airways Corp. *		169,036		1,039,571
Knight Transportation, Inc.		44,357		722,132
Landstar System, Inc.		34,318		1,875,479
Marten Transport Ltd.		17,127		302,977
Matson, Inc.		32,018		852,639
Old Dominion Freight Line, Inc. *		52,176		2,265,482
Park-Ohio Holdings Corp. *		6,147		212,502
Patriot Transportation Holding, Inc. *		5,071		157,302
Republic Airways Holdings, Inc. *		29,818		333,067
Roadrunner Transportation Systems, Inc. *		17,578		476,715
Ryder System, Inc.		37,632		2,092,716
Saia, Inc. *		17,726		531,957
SkyWest, Inc.		35,583		458,665
Spirit Airlines, Inc. *		53,800		1,676,946
Swift Transportation Co. *		63,503		1,140,514
Universal Truckload Services, Inc.		4,530		114,156
US Airways Group, Inc. *		142,292		2,299,439
UTI Worldwide, Inc.		78,146		1,290,190
Werner Enterprises, Inc.		33,384		769,167
Wesco Aircraft Holdings, Inc. *		30,856		590,275
XPO Logistics, Inc. *(a)		20,527		471,300

				32,988,459

Utilities 2.8%
ALLETE, Inc.		26,404		1,246,269
American States Water Co.		14,643		770,222
Atmos Energy Corp.		67,997		2,743,679
Avista Corp.		44,131		1,159,321
Black Hills Corp.		32,702		1,570,350
California Water Service Group		35,368		705,592
Chesapeake Utilities Corp.		7,074		369,334
Cleco Corp.		43,714		1,974,124
Connecticut Water Service, Inc.		8,443		257,174
Dynegy, Inc. *		73,215		1,422,567
El Paso Electric Co.		29,969		1,030,934
Great Plains Energy, Inc.		111,899		2,452,826
Hawaiian Electric Industries, Inc.		72,816		1,821,128
IDACORP, Inc.		37,050		1,773,584
MGE Energy, Inc.		17,375		905,411
Middlesex Water Co.		12,509		250,430
New Jersey Resources Corp.		31,335		1,349,912
Northwest Natural Gas Co.		20,257		831,347
NorthWestern Corp.		27,920		1,121,546
Ormat Technologies, Inc.		13,032		326,712
Otter Tail Corp.		27,237		715,788
Piedmont Natural Gas Co., Inc.		55,942		1,804,689
PNM Resources, Inc.		59,938		1,313,242
Portland General Electric Co.		56,523		1,628,428
SJW Corp.		10,889		284,747
South Jersey Industries, Inc.		23,672		1,367,295
Southwest Gas Corp.		34,218		1,600,718
The Empire District Electric Co.		32,018		677,821
The Laclede Group, Inc.		22,465		1,000,366
UIL Holdings Corp.		37,533		1,417,246
Unitil Corp.		9,499		267,302
UNS Energy Corp.		30,553		1,397,189
Vectren Corp.		59,573		1,942,080
WGL Holdings, Inc.		36,949		1,542,251
York Water Co.		9,712		189,578

				41,231,202

Total Common Stock
(Cost $1,259,013,061)				1,444,684,613




Other Investment Companies 0.1% of net assets

Equity Fund 0.0%
iShares Russell 2000 ETF		2,500		250,950

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund 0.00% (d)		1,451,362		1,451,362

Total Other Investment Companies
(Cost $1,702,649)				1,702,312




Rights 0.0% of net assets

Consumer Services 0.0%
Biglari Holdings, Inc. *		835		24,716

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

Total Rights
(Cost $—)				24,716

104 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Warrants 0.0% of net assets

Real Estate 0.0%
Tejon Ranch Co. *		1,628		6,187

Total Warrants
(Cost $9,004)				6,187



End of Investments



Collateral Invested for Securities on Loan 3.1% of net assets


State Street Institutional U.S. Government Money Market Fund 0.00% (d)		45,001,086		45,001,086

Total Collateral Invested for Securities on Loan
(Cost $45,001,086)				45,001,086



End of Collateral Invested for Securities on Loan

At 08/31/13, the tax basis cost of the fund’s investments was $1,262,786,015 and the unrealized appreciation and depreciation were $229,113,793 and ($45,481,980), respectively, with a net unrealized appreciation of $183,631,813.


*		Non-income producing security.
(a)		All or a portion of this security is on loan. Securities on loan were valued at $44,139,164.
(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 0.0% of net assets.
(d)		The rate shown is the 7-day yield.


ETF —		Exchange Traded Fund
REIT —		Real Estate Investment Trust

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2013 (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		$1,444,684,613		$—		$—		$1,444,684,613
Other Investment Companies¹		1,702,312		—		—		1,702,312
Rights¹		24,716		—		—		24,716
Warrants¹		6,187		—		—		6,187

Total		$1,446,417,828		$—		$—		$1,446,417,828

Other Financial Instruments
Collateral Invested for Securities on Loan		$45,001,086		$—		$—		$45,001,086


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

2012

(Losses)

Purchases

Sales

out

2013

Rights

$47,346

$—

($47,346

)

$—

Total

$47,346

$—

($47,346

)

$—

See financial notes 105

Schwab U.S. Small-Cap ETF

Statement of

Assets and Liabilities

As of August 31, 2013



Assets

Investments, at value (cost $1,260,724,714) including securities on loan of $44,139,164		$1,446,417,828
Collateral invested for securities on loan		45,001,086
Receivables:
Investments sold		16,406
Dividends		1,211,403
Income from securities on loan	+	158,323

Total assets		1,492,805,046

Liabilities

Collateral held for securities on loan		45,001,086
Payables:
Investments bought		937,822
Investment adviser fees	+	9,554

Total liabilities		45,948,462

Net Assets

Total assets		1,492,805,046
Total liabilities	−	45,948,462

Net assets		$1,446,856,584

Net Assets by Source
Capital received from investors		1,276,401,995
Net investment income not yet distributed		1,480,574
Net realized capital losses		(16,719,099	)
Net unrealized capital gains		185,693,114

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$1,446,856,584

31,650,000

$45.71

106 See financial notes

Schwab U.S. Small-Cap ETF

Statement of

Operations

For the period September 1, 2012 through August 31, 2013



Investment Income

Dividends (net of foreign withholding tax of $763)		$16,687,448
Interest		205
Securities on loan	+	1,228,864

Total investment income		17,916,517

Expenses

Investment adviser fees		874,621

Total expenses	−	874,621

Net investment income		17,041,896

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(12,168,500	)
Net realized gains on in-kind redemptions	+	51,705,928

Net realized gains		39,537,428
Net unrealized gains on investments	+	163,291,817

Net realized and unrealized gains		202,829,245

Net increase in net assets resulting from operations		$219,871,141

See financial notes 107

Schwab U.S. Small-Cap ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/12-8/31/13				9/1/11-8/31/12
Net investment income		$17,041,896			$8,107,960
Net realized gains		39,537,428			29,193,207
Net unrealized gains	+	163,291,817			34,591,730

Net increase in net assets resulting from operations		219,871,141			71,892,897

Distributions to Shareholders

Distributions from net investment income		($16,364,820	)		($7,088,515	)

Transactions in Fund Shares

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

19,050,000

$801,652,843

7,400,000

$254,626,339

Shares redeemed

(4,950,000

)

(199,818,780

)

(4,150,001

)

(140,437,449

)

Net transactions in fund shares

14,100,000

$601,834,063

3,249,999

$114,188,890

Shares Outstanding and Net Assets

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

17,550,000

$641,516,200

14,300,001

$462,522,928

Total increase

14,100,000

805,340,384

3,249,999

178,993,272

End of period

31,650,000

$1,446,856,584

17,550,000

$641,516,200

Net investment income not yet distributed

$1,480,574

$1,521,196

108 See financial notes

Schwab U.S. Dividend Equity ETF™

Financial Statements

Financial Highlights


	9/1/12–			10/19/11¹–
	8/31/13			8/31/12


Per-Share Data ($)

Net asset value at beginning of period		28.58			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.91			0.62
Net realized and unrealized gains (losses)		4.40			3.43

Total from investment operations		5.31			4.05
Less distributions:
Distributions from net investment income		(0.89	)		(0.47	)

Net asset value at end of period		33.00			28.58

Total return (%)		18.93			16.31	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.07			0.17	³
Gross operating expenses		0.07			0.17	³
Net investment income (loss)		3.09			3.19	³
Portfolio turnover rate⁴		13			17	²
Net assets, end of period ($ x 1,000)		1,141,690			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.

See financial notes 109

Schwab US Dividend Equity ETF

Portfolio Holdings as of August 31, 2013

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

Cost

Value

Holdings by Category

($)

.5%

Common Stock

1,034,463,752

1,135,929,153

.2%

Other Investment Companies

2,146,400

2,154,854

.7%

Total Investments

1,036,610,152

1,138,084,007

.3%

Other Assets and
Liabilities, Net

3,606,315

100

.0%

Net Assets

1,141,690,322


	Number		Value
Security	of Shares		($)

Common Stock 99.5% of net assets

Banks 0.0%
First Financial Bancorp		21,808		327,120

Capital Goods 16.3%
3M Co.		230,302		26,157,701
Eaton Corp. plc		171,703		10,872,234
Emerson Electric Co.		261,027		15,758,200
General Dynamics Corp.		120,651		10,044,196
Honeywell International, Inc.		285,470		22,714,848
Illinois Tool Works, Inc.		150,511		10,757,021
Lockheed Martin Corp.		96,686		11,836,300
Northrop Grumman Corp.		86,001		7,935,312
Raytheon Co.		117,919		8,892,272
Rockwell Automation, Inc.		50,872		4,946,285
The Boeing Co.		247,778		25,749,090
United Technologies Corp.		307,083		30,739,008

				186,402,467

Commercial & Professional Services 0.6%
Waste Management, Inc.		159,563		6,452,728

Consumer Durables & Apparel 1.0%
Garmin Ltd.		39,276		1,601,282
Hasbro, Inc.		42,317		1,928,809
Leggett & Platt, Inc.		52,730		1,524,952
Mattel, Inc.		125,099		5,066,509
Tupperware Brands Corp.		19,466		1,572,269

				11,693,821

Consumer Services 3.5%
Cracker Barrel Old Country Store, Inc.		8,452		831,846
Darden Restaurants, Inc.		47,327		2,186,981
H&R Block, Inc.		99,091		2,765,630
McDonald’s Corp.		364,054		34,352,135

				40,136,592

Diversified Financials 1.3%
Federated Investors, Inc., Class B		33,715		915,699
McGraw Hill Financial, Inc.		99,176		5,788,903
T. Rowe Price Group, Inc.		94,363		6,618,621
Waddell & Reed Financial, Inc., Class A		31,704		1,509,745

				14,832,968

Energy 12.6%
Chevron Corp.		425,011		51,184,075
ConocoPhillips		443,902		29,430,703
Diamond Offshore Drilling, Inc.		25,495		1,632,445
Exxon Mobil Corp.		566,197		49,349,730
HollyFrontier Corp.		73,781		3,281,779
RPC, Inc.		22,353		319,201
The Williams Cos., Inc.		247,772		8,979,257

				144,177,190

Food & Staples Retailing 5.7%
Sysco Corp.		215,978		6,915,616
Wal-Mart Stores, Inc.		594,738		43,403,979
Walgreen Co.		312,633		15,028,268

				65,347,863

Food, Beverage & Tobacco 13.2%
Altria Group, Inc.		728,762		24,690,457
Campbell Soup Co.		64,412		2,781,310
ConAgra Foods, Inc.		150,650		5,094,983
Flowers Foods, Inc.		61,859		1,286,049
General Mills, Inc.		234,134		11,547,489
Kellogg Co.		91,784		5,572,207
PepsiCo, Inc.		561,414		44,761,538
Reynolds American, Inc.		115,235		5,488,643
The Coca-Cola Co.		1,279,486		48,850,775
Universal Corp.		8,394		411,474

				150,484,925

Health Care Equipment & Services 3.6%
Baxter International, Inc.		196,731		13,684,608
Becton Dickinson & Co.		70,283		6,844,159
Medtronic, Inc.		367,209		19,003,066
Meridian Bioscience, Inc.		13,997		314,792
Owens & Minor, Inc.		22,700		774,297

				40,620,922

Household & Personal Products 7.2%
Colgate-Palmolive Co.		318,220		18,383,570
Kimberly-Clark Corp.		139,742		13,063,082
The Procter & Gamble Co.		659,273		51,350,774

				82,797,426

110 See financial notes

Schwab US Dividend Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Insurance 1.3%
Aflac, Inc.		169,085		9,771,422
Arthur J. Gallagher & Co.		46,469		1,921,029
Erie Indemnity Co., Class A		9,441		696,368
Mercury General Corp.		12,940		567,807
PartnerRe Ltd.		21,191		1,846,796

				14,803,422

Materials 3.4%
Air Products & Chemicals, Inc.		75,474		7,708,914
E.I. du Pont de Nemours & Co.		334,157		18,919,969
Greif, Inc., Class A		11,525		620,852
International Paper Co.		161,005		7,601,046
RPM International, Inc.		47,607		1,617,686
Schweitzer-Mauduit International, Inc.		11,236		643,486
Sonoco Products Co.		36,275		1,350,518

				38,462,471

Media 0.2%
Gannett Co., Inc.		82,647		1,990,966
Meredith Corp.		13,613		585,495

				2,576,461

Pharmaceuticals, Biotechnology & Life Sciences 8.4%
Bristol-Myers Squibb Co.		595,860		24,841,403
Eli Lilly & Co.		359,880		18,497,832
Johnson & Johnson		609,014		52,624,900

				95,964,135

Retailing 4.3%
Genuine Parts Co.		56,487		4,350,064
L Brands, Inc.		86,789		4,978,217
The Home Depot, Inc.		530,286		39,501,004

				48,829,285

Semiconductors & Semiconductor Equipment 6.1%
Analog Devices, Inc.		111,577		5,163,784
Intel Corp.		1,804,401		39,660,734
Linear Technology Corp.		84,881		3,253,489
Maxim Integrated Products, Inc.		105,571		2,939,624
Microchip Technology, Inc.		71,416		2,771,655
Texas Instruments, Inc.		402,807		15,387,227

				69,176,513

Software & Services 6.2%
Automatic Data Processing, Inc.		175,841		12,512,845
CA, Inc.		119,758		3,502,921
Microsoft Corp.		1,489,249		49,740,917
Paychex, Inc.		118,032		4,565,478

				70,322,161

Technology Hardware & Equipment 0.4%
Harris Corp.		39,612		2,243,227
Molex, Inc.		49,707		1,442,497
MTS Systems Corp.		5,668		341,044

				4,026,768

Telecommunication Services 0.6%
CenturyLink, Inc.		221,495		7,335,914

Transportation 1.8%
C.H. Robinson Worldwide, Inc.		57,943		3,295,219
CSX Corp.		370,128		9,108,850
Norfolk Southern Corp.		114,319		8,249,259

				20,653,328

Utilities 1.8%
CenterPoint Energy, Inc.		155,463		3,564,767
Entergy Corp.		64,784		4,096,292
New Jersey Resources Corp.		15,038		647,837
PPL Corp.		214,252		6,577,536
Questar Corp.		62,982		1,380,566
WGL Holdings, Inc.		19,418		810,507
Wisconsin Energy Corp.		83,508		3,427,168

				20,504,673

Total Common Stock
(Cost $1,034,463,752)				1,135,929,153




Other Investment Companies 0.2% of net assets

Equity Fund 0.2%
Vanguard Dividend Appreciation ETF		25,000		1,682,250

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund 0.00% (a)		472,604		472,604

Total Other Investment Companies
(Cost $2,146,400)				2,154,854



End of Investments

At 08/31/13, the tax basis cost of the fund’s investments was $1,036,720,106 and the unrealized appreciation and depreciation were $108,370,482 and ($7,006,581), respectively, with a net unrealized appreciation of $101,363,901.


(a)		The rate shown is the 7-day yield.

See financial notes 111

Schwab US 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, 2013 (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

$1,135,929,153

$—

$1,135,929,153

Other Investment Companies¹

2,154,854

—

2,154,854

Total

$1,138,084,007

$—

$1,138,084,007


¹		As categorized in Portfolio Holdings.

112 See financial notes

Schwab U.S. Dividend Equity ETF

Statement of

Assets and Liabilities

As of August 31, 2013



Assets

Investments, at value (cost $1,036,610,152)		$1,138,084,007
Receivables:
Dividends	+	4,759,548

Total assets		1,142,843,555

Liabilities

Payables:
Investments bought		1,146,740
Investment adviser fees	+	6,493

Total liabilities		1,153,233

Net Assets

Total assets		1,142,843,555
Total liabilities	−	1,153,233

Net assets		$1,141,690,322

Net Assets by Source
Capital received from investors		1,037,579,768
Net investment income not yet distributed		6,027,574
Net realized capital losses		(3,390,875	)
Net unrealized capital gains		101,473,855

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$1,141,690,322

34,600,001

$33.00

See financial notes 113

Schwab U.S. Dividend Equity ETF

Statement of

Operations

For the period September 1, 2012 through August 31, 2013



Investment Income

Dividends		$24,629,418
Interest	+	194

Total investment income		24,629,612

Expenses

Investment adviser fees		571,540

Total expenses	−	571,540

Net investment income		24,058,072

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(3,047,689	)
Net realized gains on in-kind redemptions	+	19,619,102

Net realized gains		16,571,413
Net unrealized gains on investments	+	79,098,606

Net realized and unrealized gains		95,670,019

Net increase in net assets resulting from operations		$119,728,091

114 See financial notes

Schwab U.S. Dividend Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/12-8/31/13				*10/19/11-8/31/12**
Net investment income		$24,058,072			$7,857,247
Net realized gains		16,571,413			5,045,819
Net unrealized gains	+	79,098,606			22,375,249

Net increase in net assets resulting from operations		119,728,091			35,278,315

Distributions to Shareholders

Distributions from net investment income		($20,742,506	)		($5,109,365	)

Transactions in Fund Shares

9/1/12-8/31/13

10/19/11*-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

22,050,000

$691,326,939

19,900,001

$536,746,165

Shares redeemed

(5,100,000

)

(153,085,998

)

(2,250,000

)

(62,451,319

)

Net transactions in fund shares

16,950,000

$538,240,941

17,650,001

$474,294,846

Shares Outstanding and Net Assets

9/1/12-8/31/13

10/19/11*-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

17,650,001

$504,463,796

—

$—

Total increase

16,950,000

637,226,526

17,650,001

504,463,796

End of period

34,600,001

$1,141,690,322

17,650,001

$504,463,796

Net investment income not yet distributed

$6,027,574

$2,747,882


*		Commencement of operations.

See financial notes 115

Schwab U.S. Equity 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 Emerging Markets Equity 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
Schwab U.S. Mid-Cap ETF		Schwab Fundamental U.S. Broad Market Index ETF
Schwab U.S. Small-Cap ETF		Schwab Fundamental U.S. Large Company Index ETF
Schwab U.S. Dividend Equity ETF		Schwab Fundamental U.S. Small Company Index ETF
Schwab U.S. REIT ETF		Schwab Fundamental International Large Company Index ETF
Schwab International Equity ETF		Schwab Fundamental International Small Company Index ETF
Schwab International Small-Cap Equity ETF		Schwab Fundamental Emerging Markets Large Company Index 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).

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”). For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the Securities Exchange Commission (“SEC”).

(a) Security Valuation:

Under procedures approved by the funds’ Board of Trustees (the “Board”), the investment adviser has 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: Traded securities are 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

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Financial Notes (continued)

2. Significant Accounting Policies (continued):


		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 activities, recent transactions, 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. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the funds pursuant to the valuation procedures.


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

	•	Underlying funds: Mutual funds are valued at their respective NAVs. Exchange traded funds (ETFs) traded on a recognized securities exchange are valued at the last reported sale price that day or the official closing price, if applicable.

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 inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. 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 and ETFs. Investments in mutual funds are valued daily at their NAVs, and investments in ETFs are valued daily at the last reported sale price or the official closing price, which 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, 2013 are disclosed in the Portfolio Holdings.

117

Schwab U.S. Equity ETFs

Financial Notes (continued)

2. Significant Accounting Policies (continued):

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

Securities Lending: Under the trust’s Securities Lending Program, a fund (lender) may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, 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 prior day’s 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 lending agent provides the fund with indemnification against borrower default. The fund bears the risk of loss with respect to the investment of cash collateral. The cash collateral of securities loaned is invested in money market portfolios operating 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. On loans collateralized by U.S. Treasury and/or federal agency obligations, a fee is received from the borrower, and is allocated between the fund and the lending agent.

The values of the securities on loan and the related cash collateral are disclosed in the Portfolio Holdings and the Statement of Assets and Liabilities for each fund. The following table presents the non-cash collateral as of August 31, 2013.


	Non-Cash
	Collateral Received

Schwab U.S. Broad Market ETF		$146,328
Schwab U.S. Large-Cap ETF		1,303,879
Schwab U.S. Large-Cap Growth ETF		1,254,383
Schwab U.S. Large-Cap Value ETF		6,431
Schwab U.S. Mid-Cap ETF		3,779,146
Schwab U.S. Small-Cap ETF		1,039,200

(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. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.

(e) Expenses:

Pursuant to the Investment Advisory Agreement (“Advisor Agreement”) between Charles Schwab Investment Management, Inc. (“CSIM” or the “investment adviser”) and the trust, the investment adviser will pay the operating expenses of each fund, excluding interest expense, taxes, any brokerage expenses, and extraordinary or non-routine expenses. Interest expense, taxes, any brokerage expenses and extraordinary or non-routine 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 quarterly and from net realized capital gains, if any, once a year.

(g) Accounting Estimates:

The accounting policies described in this report conform to GAAP. 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.

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Financial Notes (continued)

2. Significant Accounting Policies (continued):

(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 attributable to these arrangements to be remote.

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.

119

Schwab U.S. Equity ETFs

Financial Notes (continued)

3. Risk Factors (continued):

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 certain 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 their respective benchmark index.

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.

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.

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 the fund’s NAV, there may be times when the market price and the NAV vary significantly. Investors may pay more than NAV when they buy shares of 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:

CSIM, a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser pursuant to an Advisory Agreement between CSIM and the trust.

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Financial Notes (continued)

4. Affiliates and Affiliated Transactions (continued):

For its advisory services to the 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:

Effective September 20, 2012:

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%


*Effective March 11, 2013 the management fee of the Schwab U.S. Small-Cap ETF was further reduced to 0.08%.

Prior to September 20, 2012, the rate was:

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%

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							Balance				Realized		Dividends
	of Shares							of Shares		Market		Gain (Loss)		Received
	Held at		Gross		Gross			Held at		Value at		9/1/12 to		9/1/12 to
Fund	9/1/12		Purchases		Sales			8/31/13		8/31/13		8/31/13		8/31/13

Schwab U.S. Broad Market ETF		72,622		64,082		(4,800	)		131,904		$2,754,156		$36,297		$26,192
Schwab U.S. Large-Cap ETF		65,968		59,004		(4,224	)		120,748		2,521,218		28,354		22,984
Schwab U.S. Large-Cap Growth ETF		72,675		45,116		(6,168	)		111,623		2,330,688		7,651		22,671

Certain Schwab funds may own shares of other Schwab funds. As of August 31, 2013, outstanding shares of Schwab U.S. Large-Cap ETF and Schwab U.S. Small-Cap ETF were owned by other Schwab funds. The percentages of the outstanding shares of these funds owned by other Schwab funds are less than 1%.

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 to be charged on a 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. The funds had no interfund borrowing or lending activity during the period.

5. Other Service Providers:

SEI Investments Distribution Co. 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 by the funds. The funds’ accountant maintains all books and records related to the funds’ transactions.

6. Board of Trustees:

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Financial Notes (continued)

6. Board of Trustees (continued):

limitations throughout the report period. The trust did not pay any of these interested persons for their services as trustees. For information regarding the trustees please refer to Trustees and Officers table at the end of this report.

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.

8. Purchases and Sales/Maturities of Investment Securities:

For the period ended August 31, 2013, 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		$88,352,844		$66,262,045
Schwab U.S. Large-Cap ETF		82,066,286		66,546,078
Schwab U.S. Large-Cap Growth ETF		73,119,497		69,268,836
Schwab U.S. Large-Cap Value ETF		53,227,956		45,490,959
Schwab U.S. Mid-Cap ETF		109,003,663		102,495,969
Schwab U.S. Small-Cap ETF		244,857,335		217,501,303
Schwab U.S. Dividend Equity ETF		109,495,680		102,756,994

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 are subject to a standard creation transaction fee and a standard redemption transaction fee paid to the custodian to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units. Purchasers and redeemers of Creation Units for cash are subject to an additional variable charge paid to the fund that will offset the transaction costs to the fund of buying or selling portfolio securities. In addition, purchasers and redeemers of shares in Creation Units are responsible for payment of the costs of transferring securities to or out of the fund. From time to time, the Adviser may cover the cost of any transaction fees when believed to be in the best interests of the fund.

The in-kind transactions for the period ended August 31, 2013 were as follows:


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

Schwab U.S. Broad Market ETF		$920,775,635		$74,215,612
Schwab U.S. Large-Cap ETF		755,360,238		59,767,121
Schwab U.S. Large-Cap Growth ETF		275,468,745		17,808,913
Schwab U.S. Large-Cap Value ETF		317,819,914		76,066,374
Schwab U.S. Mid-Cap ETF		429,206,802		107,455,652
Schwab U.S. Small-Cap ETF		778,410,792		189,850,950
Schwab U.S. Dividend Equity ETF		668,834,636		136,435,524

For the period ended August 31, 2013, the funds realized net capital gains or losses resulting from in-kind redemptions of 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, 2013 are disclosed in the funds’ Statements of Operations.

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Financial Notes (continued)

10. Federal Income Taxes

As of August 31, 2013, 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		$6,720,486			$5,860,258			$2,061,801			$2,758,069			$986,406			$1,630,276			$6,027,574
Undistributed long-term capital gains		—			—			—			—			—			—			—
Unrealized appreciation		354,686,596			281,487,689			152,246,575			88,084,933			73,773,637			229,113,793			108,370,482
Unrealized depreciation		(25,041,207	)		(18,758,652	)		(11,789,247	)		(5,133,904	)		(13,431,025	)		(45,481,980	)		(7,006,581	)

Net unrealized appreciation/(depreciation)		329,645,389			262,729,037			140,457,328			82,951,029			60,342,612			183,631,813			101,363,901

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, 2013, the funds had capital loss carryforwards available to offset future net capital gains before the expiration dates 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

Expiration Date

ETF

August 31, 2019

$—

$721,062

$691,441

$295,384

$218,695

$927,631

$—

No expiration*

4,554,355

5,529,477

6,744,656

1,569,350

5,846,538

4,840,344

372,704

Total

$4,554,355

$6,250,539

$7,436,097

$1,864,734

$6,065,233

$5,767,975

$372,704


*		As a result of the passage of the Regulated Investment Company Modernization Act of 2010, capital losses incurred after December 31, 2010 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 may increase the likelihood that the pre-enactment capital losses may 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.

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, 2013, 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

$2,115,845

$762,826

$1,550,092

$237,973

$2,093,285

$9,039,525

$2,908,217

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Financial Notes (continued)

10. Federal Income Taxes (continued):

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		$32,174,430		$25,323,080		$8,617,825		$13,282,460		$6,489,136		$16,364,820		$20,742,506
Long-term capital gains		—		—		—		—		—		—		—

Prior 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		—		—		—		—		—		—		—

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 fund for financial reporting purposes. The fund 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, 2013, 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		$25,266,947			$21,602,846			$5,891,397			$16,900,779			$27,056,578			$51,680,718			$19,607,579
Undistributed net investment income		(211,342	)		(129,892	)		(76,908	)		(94,115	)		(64,499	)		(717,698	)		(35,874	)
Net realized gains and losses		(25,055,605	)		(21,472,954	)		(5,814,489	)		(16,806,664	)		(26,992,079	)		(50,963,020	)		(19,571,705	)

For the period ended August 31, 2013, 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

$25,270,092

$21,650,148

$5,917,362

$16,945,870

$27,097,153

$51,705,928

$19,619,102

As of August 31, 2013, 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, 2013, the funds did not incur any interest or penalties.

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.

124

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, 2013, the results of each of their operations for the year then ended and the changes in each of 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 audit 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, 2013 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 17, 2013

125

Other Federal Tax Information (unaudited)

For corporate shareholders, the following percentage of the funds’ dividend distributions paid during the period ended August 31, 2013 qualify for the corporate dividends received deduction:


Schwab U.S. Broad Market ETF	90.81	%
Schwab U.S. Large-Cap ETF	94.04	%
Schwab U.S. Large-Cap Growth ETF	97.97	%
Schwab U.S. Large-Cap Value ETF	96.46	%
Schwab U.S. Mid-Cap ETF	73.94	%
Schwab U.S. Small-Cap ETF	66.00	%
Schwab U.S. Dividend Equity ETF	100.00	%

For the period ended August 31, 2013, 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 2014 via IRS form 1099 of the amount for use in preparing their 2013 income tax return.


Schwab U.S. Broad Market ETF			$30,348,208
Schwab U.S. Large-Cap ETF			24,488,848
Schwab U.S. Large-Cap Growth ETF			8,321,898
Schwab U.S. Large-Cap Value ETF			13,071,263
Schwab U.S. Mid-Cap ETF			5,090,046
Schwab U.S. Small-Cap ETF			10,996,731
Schwab U.S. Dividend Equity ETF			20,742,506

126

Other Information (unaudited)

Frequency Distribution of Discounts and Premiums

Bid/Offer Midpoint vs. NAV as of August 31, 2013

The following charts are provided to show the frequency at which the daily closing 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
	>0-49		50-99		100-199		>200		>0-49		50-99		100-199		>200
	Basis		Basis		Basis		Basis		Basis		Basis		Basis		Basis
	Points		Points		Points		Points		Points		Points		Points		Points

Schwab U.S. Broad Market ETF
Commencement of trading 11/3/09 through 8/31/13		705		1		—		—		162		—		—		—

Schwab U.S. Large-Cap ETF
Commencement of trading 11/3/09 through 8/31/13		679		—		—		—		201		—		—		—

Schwab U.S. Large-Cap Growth ETF
Commencement of trading 12/11/09 through 8/31/13		617		—		—		—		191		—		—		—

Schwab U.S. Large-Cap Value ETF
Commencement of trading 12/11/09 through 8/31/13		630		—		—		—		138		—		—		—

Schwab U.S. Mid-Cap ETF
Commencement of trading 01/13/11 through 8/31/13		500		—		—		—		105		—		—		—

Schwab U.S. Small-Cap ETF
Commencement of trading 11/3/09 through 8/31/13		634		1		—		—		253		—		—		—

Schwab U.S. Dividend Equity ETF
Commencement of trading 10/20/11 through 8/31/13		276		—		—		—		83		—		—		—

127

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 99 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/Private Investor (January 2009 – present). Consulting Managing Director, PIMCO (investment adviser) (March 2003 – December 2008).	23	Director, PS Business Parks, Inc. (2005 – 2012). Trustee, PIMCO Funds (investment company consisting of 84 portfolios) (1997 – 2008). Trustee, PIMCO Variable Insurance Trust (investment company consisting of 16 portfolios) (2006 – 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).


Stephen Timothy Kochis 1946 Trustee (Trustee of Schwab Strategic Trust since 2012.)	CEO and Owner, Kochis Global (wealth management consulting) (May 2012 – present); Chairman and CEO, Aspiriant (wealth management) (January 2008 – April 2012).	23	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).	23	None

128

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. Until October 2008, President and Chief Operating Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation. From 2004 through 2007, Executive Vice President and President, Schwab Investor Services. From 2004 through 2005, Executive Vice President and Chief Operating Officer, Individual Investor Enterprise, and from 2002 through 2004, Executive Vice President, Corporate Services.	99	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).


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).


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).

129

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 Chief Legal Officer and Secretary (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 Schwab ETF’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.

130

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. Free-float market capitalization is a variation of market capitalization that only includes shares generally available to the public, and excludes shares of a company held by entities such as the government. Modified market capitalization weighting represents a mix between conventional market capitalization weighting and equal weighting.

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.

131

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.

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

133

Notes

Schwab ETFs^tm are designed to be low-cost, diversified investments. Each fund follows broad market indices and provides exposure to specific segments of the market, making each an 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^tm

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

Fundamental Index* ETFs

Schwab Fundamental U.S. Broad Market Index ETF

Schwab Fundamental U.S. Large Company Index ETF

Schwab Fundamental U.S. Small Company Index ETF

Schwab Fundamental International Large Company Index ETF

Schwab Fundamental International Small Company Index ETF

Schwab Fundamental Emerging Markets Large Company Index ETF


*		FUNDAMENTAL INDEX is a registered trademark of Research Affiliates LLC.

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.

MFR57932-03
00103210

Annual report dated August 31, 2013, enclosed.

Schwab International Equity ETFs

Schwab International

Equity ETF^tm

Schwab International Small-Cap

Equity ETF^tm

Schwab Emerging Markets

Equity ETF^tm

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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™		35
Schwab Emerging Markets Equity ETF™		59
Financial Notes		77
Report of Independent Registered Public Accounting Firm		87
Other Federal Tax Information		88
Other Information		89
Trustees and Officers		90
Glossary		93

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


Total Return for the 12 Months Ended August 31, 2013

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


Market Price Return¹	15.86%
NAV Return¹	16.60%	*
FTSE Developed ex-US Index (Net)	16.64%
ETF Category: Morningstar Foreign Large Blend²	15.50%


Performance Details	pages 6-7




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


Market Price Return¹	18.78%
NAV Return¹	18.23%
FTSE Developed Small Cap ex-US Liquid Index (Net)	18.19%
ETF Category: Morningstar Foreign Small/Mid Blend²	19.72%


Performance Details	pages 8-9




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


Market Price Return¹	-2.79%
NAV Return¹	-0.89%
FTSE Emerging Index (Net)	-0.59%
ETF Category: Morningstar Diversified Emerging Markets²	-0.46%


Performance Details	pages 10-11

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

Index ownership — “FTSE^®” is a trademark owned by the London Stock Exchange plc 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 semi-annual 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 Equity 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 goals, and for reading this annual report concerning the Schwab International Equity ETFs. These funds are part of our line-up of core investment solutions and are available at some of the lowest operating expense ratios in the industry. The funds are designed to track market-leading international stock indices and provide the benefits of an ETF, including transparency, trading flexibility, and potential tax efficiency.

For the 12 months ended August 31, 2013, the funds generated returns that were closely aligned with their respective indices, and reflected a mixed performance by overseas equities. The environment for these returns included generally volatile conditions for emerging markets, and policies by many central banks meant to stimulate economic growth. In the U.S., signs of economic improvement led the Federal Reserve to announce that it was starting to consider “tapering” some of its stimulative policies. Bond yields rose sharply around the world in response to this announcement, while income-oriented stocks suffered steep subsequent losses.

Amid this backdrop, stocks in developed international markets solidly outperformed stocks in emerging markets. Japanese equities were some of the better performers, while select euro zone markets also performed well. Among emerging markets, stocks in China generated solid returns as the country’s economy seemed to stabilize, while stocks in Brazil, India, and Russia faced

Asset Class Performance Comparison % returns during the 12 months ended 8/31/2013

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



		18.70%		S&P 500^® Index: measures U.S. large-cap stocks

		26.27%		Russell 2000^® Index: measures U.S. small-cap stocks

		18.66%		MSCI EAFE^® Index (Net): measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East

		−2.47%		Barclays U.S. Aggregate Bond Index: measures the U.S. bond market

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

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

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

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

Schwab International Equity ETFs 3

From the President continued

For the 12 months ended August 31, 2013, the funds generated returns that were closely aligned with their respective indices, and reflected a mixed performance by overseas equities.

headwinds and underperformed. Reflecting these developments, the FTSE Developed ex-U.S. Index returned 16.6% for the 12 months ended August 31, 2013, while the FTSE Emerging Index returned -0.6%.* The depreciation of many foreign currencies versus the U.S. dollar played a role in these performances, reducing the returns of international investments in U.S. dollar terms.

For more information about the Schwab International Equity ETFs, please continue reading this report. In addition, you can find further details about these ETFs and about ETF investing by visiting www.schwabetfs.com, or by contacting us at 1-800-435-4000.

Sincerely,


*		The total returns cited for the FTSE Developed ex-U.S. Index and the FTSE Emerging Index are net of foreign withholding taxes; the underlying tax rate information is available from FTSE.

4 Schwab International Equity ETFs

Fund Management



		Agnes Hong, CFA, Managing Director and Head of Passive Equity Strategies, leads the portfolio management teams of Schwab’s index mutual funds and equity ETFs. She also has overall responsibility for all aspects of the management of the funds. Prior to joining CSIM in 2009, Ms. Hong spent five years as a portfolio manager at Barclays Global Investors (subsequently acquired by BlackRock), where she managed institutional index funds and quantitative active funds. Prior to that, Ms. Hong worked in management consulting and product management, servicing global financial services clients.

		Ferian Juwono, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors), where he spent over three years as a portfolio manager, managing equity index funds for institutional clients, and nearly two years as a senior business analyst. Prior to that, Mr. Juwono worked for over four years as a senior financial analyst with Union Bank of California.

		Chuck Craig, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2012, Mr. Craig worked at Guggenheim Funds (formerly Claymore Group), where he spent over five years as a managing director of portfolio management and supervision, and three years as vice president of product research and development. Prior to that, he worked as an equity research analyst at First Trust Portfolios (formerly Niké Securities), and a trader and analyst at PMA Securities, Inc.

Schwab International Equity 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 ended August 31, 2013, the fund closely tracked the index. The fund’s market price return was 15.86% and its NAV return was 16.60% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 16.64% during the same period. Differences between the return of the fund and the return of the index may be attributable to, among other things, the operational and transactional costs incurred by the fund and not the index.

Market Highlights. Large-cap international stocks performed very well, with most country markets in the index generating positive returns. Signs of stabilization regarding the euro zone’s sovereign debt crisis and early evidence of possible economic improvement in the region provided positive catalysts for these results. However, many foreign currencies depreciated versus the U.S. dollar, reducing the returns of overseas investments in U.S. dollar terms.

Contributors and Detractors. Japanese stocks were some of the biggest contributors to the returns of both the fund and index. Japanese companies represented an average weight of approximately 18% of the fund, and returned roughly 25% in U.S. dollar terms. One example from this market was Toyota Motor Corporation, which manufactures, sells, leases, and repairs passenger cars, trucks, busses, and their parts. Toyota Motor Corporation holdings represented the fund’s largest position in Japan and returned roughly 57%.

U.K. stocks, which represented an average weight of about 18% for the fund, also provided meaningful contributions. Shares of U.K. companies returned approximately 15% for the fund. One example from this market was HSBC Holdings plc, a holding company for the HSBC Group, which provides a variety of international banking and financial services. Shares of HSBC Holdings plc returned approximately 26% for the fund in U.S. dollar terms, contributing more to its return than any other U.K. holding.

Canadian stocks were some of the smallest contributors to the performances of the index and fund. Shares of Canadian companies represented an average weight of approximately 8% of the fund, and returned roughly 3% in U.S. dollar terms. One example from this market was Barrick Gold Corporation, an international company with operating mines and development projects in many parts of the world. Shares of Barrick Gold Corporation lost nearly half their value over the 12 months, returning -49%.

Stocks from Norway also provided limited contributions to the returns of both the fund and index. Holdings in this country represented roughly 1% of the fund and returned approximately 5% in U.S. dollar terms. Statoil ASA—a company that explores for, produces, transports, refines, and trades oil and natural gas—provided one example from this market, returning approximately -10% for the fund.

As of 08/31/13:

Statistics


Number of Holdings			1,143
Weighted Average Market Cap ($ x 1,000,000)			$51,907
Price/Earnings Ratio (P/E)			18.6
Price/Book Ratio (P/B)			1.6
Portfolio Turnover Rate¹			9%

Sector Weightings % of Investments


Financials			25.6%
Industrials			12.7%
Consumer Discretionary			11.6%
Consumer Staples			10.6%
Health Care			9.1%
Materials			8.8%
Energy			8.2%
Information Technology			5.2%
Telecommunication Services			4.7%
Utilities			3.3%
Other			0.2%
Total			100.0%

Top Equity Holdings % of Net Assets²


Nestle S.A. – Reg’d			1.5%
HSBC Holdings plc			1.4%
Roche Holding AG			1.2%
Novartis AG – Reg’d			1.2%
Toyota Motor Corp.			1.2%
Vodafone Group plc			1.1%
Samsung Electronics Co., Ltd. GDR – Reg’d			0.9%
BP plc			0.9%
Royal Dutch Shell plc, A Shares			0.9%
GlaxoSmithKline plc			0.9%
Total			11.2%

Management 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 Equity ETFs

Schwab International Equity ETF^tm

Performance and Fund Facts as of 08/31/13

November 3, 2009 – August 31, 2013
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


	1 Year				3 Years			Since Inception**


Fund: Schwab International Equity ETF^tm (11/3/09)
Market Price Return²		15.86	%			8.72	%	5.81%
NAV Return²		16.60	%	*		8.70	%	5.82%
FTSE Developed ex-US Index (Net)		16.64	%			8.75	%	5.95%
ETF Category: Morningstar Foreign Large Blend³		15.50	%			7.81	%	5.85%

Fund Expense Ratio⁴: 0.09%

Country Weightings % of Investments


Japan			19.9%
United Kingdom			18.7%
Canada			8.2%
France			8.0%
Switzerland			7.7%
Germany			7.4%
Australia			7.1%
Republic of Korea			3.9%
Hong Kong			3.2%
Sweden			2.8%
Other Countries			13.1%
Total			100.0%

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

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 semi-annual 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.

Schwab International Equity 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 ended August 31, 2013, the fund closely tracked the index. The fund’s market price return was 18.78% and its NAV return was 18.23% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 18.19% during the same period.

Market Highlights. Small-cap international stocks performed very well, with most country markets in the index generating positive returns. Signs of stabilization regarding the euro zone’s sovereign debt crisis and early evidence of possible economic improvement in the region provided positive catalysts for these results. However, many foreign currencies depreciated versus the U.S. dollar, reducing the returns of overseas investments in U.S. dollar terms.

Contributors and Detractors. U.K. stocks were overwhelmingly the top contributors to the performances of the index and fund. Shares of U.K. companies represented an average weight of approximately 19%, and returned roughly 31% for the fund in U.S. dollar terms. Within this market, holdings of Ashtead Group Plc—an international equipment rental company servicing customers in the U.S. and U.K.—generated significant contributions thanks in part to a triple-digit return of about 124%.

Japanese stocks provided the next biggest contribution to the returns generated by the index and fund. Japanese companies represented an average weight of approximately 14% for the fund, and returned roughly 15% in U.S. dollar terms. One example from this market was AIFUL Corporation, a consumer financing firm. AIFUL Corporation holdings represented one of the fund’s largest positions in Japan and provided a triple-digit return of roughly 184%.

Stocks from Australia generated negative returns for the 12 months, representing the only market to detract from the overall returns of the index and fund. Australian stocks represented an average weight of roughly 7% for the fund, and returned approximately -11% in U.S. dollar terms. One example from this market was Perseus Mining Limited, a mineral exploration company. The fund’s Perseus Mining Limited holdings returned about -73%.

Beyond Australian stocks, Canadian stocks represented an average weight of approximately 19% of the fund, and returned roughly 3% in U.S. dollar terms. One example from this market was Athabasca Oil Corp, which develops oil sands in Alberta, Canada. Shares of Athabasca Oil Corp lost nearly half their value over the 12 months, returning -48%.

As of 08/31/13:

Statistics


Number of Holdings			1,295
Weighted Average Market Cap ($ x 1,000,000)			$2,124
Price/Earnings Ratio (P/E)			15.0
Price/Book Ratio (P/B)			1.1
Portfolio Turnover Rate¹			20%

Sector Weightings % of Investments


Industrials			20.5%
Financials			18.6%
Consumer Discretionary			18.1%
Materials			10.7%
Energy			8.8%
Information Technology			8.2%
Health Care			5.9%
Consumer Staples			5.2%
Utilities			2.4%
Telecommunication Services			1.2%
Other			0.4%
Total			100.0%

Top Equity Holdings % of Net Assets²


Tourmaline Oil Corp.			0.4%
Travis Perkins plc			0.4%
Mondi plc			0.4%
Methanex Corp.			0.4%
Onex Corp.			0.4%
Taylor Wimpey plc			0.4%
Symrise AG			0.4%
Ashtead Group plc			0.3%
Vermilion Energy, Inc.			0.3%
Gildan Activewear, Inc.			0.3%
Total			3.7%

Management 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 Equity ETFs

Schwab International Small-Cap Equity ETF^tm

Performance and Fund Facts as of 08/31/13

January 14, 2010 – August 31, 2013
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


	1 Year			3 Years			Since Inception*


Fund: Schwab International Small-Cap Equity ETF^tm (1/14/10)
Market Price Return²		18.78	%		10.05	%	6.55%
NAV Return²		18.23	%		9.96	%	6.37%
FTSE Developed Small Cap ex-US Liquid Index (Net)		18.19	%		9.84	%	6.52%
ETF Category: Morningstar Foreign Small/Mid Blend³		19.72	%		10.14	%	6.48%

Fund Expense Ratio⁴: 0.20%

Country Weightings % of Investments


United Kingdom			22.5%
Canada			17.1%
Japan			13.2%
Australia			5.5%
Germany			5.5%
Republic of Korea			4.3%
Switzerland			3.6%
Sweden			3.1%
France			3.0%
Italy			2.7%
Other Countries			19.5%
Total			100.0%

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

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.

Schwab International Equity 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 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 ended August 31, 2013, the fund closely tracked the index. The fund’s market price return was -2.79% and its NAV return was -0.89% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). Most of the difference between the fund’s market price return and its NAV return occurred toward the end of the report period.* The index returned -0.59% during the same period. Differences between the return of the fund and the return of the index may be attributable to, among other things, the operational and transactional costs incurred by the fund and not the index.

Market Highlights. Emerging market stocks generated disappointing returns, as economic growth showed signs of stabilizing in China, but remained limited or lackluster in major emerging market countries such as Brazil, Russia, and India. Inflation became a concern for some overseas economies, also weighing on the overall performance of emerging market stocks. In addition, the depreciation of foreign currencies such as the Brazilian real, Russian ruble, and Indian rupee versus the U.S. dollar reduced the returns of international investments in U.S. dollar terms.

Contributors and Detractors. Chinese stocks contributed the most to the returns generated by both the index and fund. The large average weight for this market represented part of the reason for this contribution, with Chinese stocks representing approximately 19% of the fund. The fund’s Chinese stocks returned roughly 15% in U.S. dollar terms. One example from this market was Tencent Holdings Limited, a company that provides Internet, mobile, and telecommunication services in China. The fund’s holdings of this company returned roughly 39%.

Stocks from Taiwan also provided meaningful contributions to the performances of the index and fund. Taiwanese companies represented an average weight of approximately 13% of the fund, and returned roughly 10% in U.S. dollar terms. One example from this market is Taiwan Semiconductor Manufacturing Company Ltd., which manufactures integrated circuits. The fund held American Depositary Receipts representing common stock of Taiwan Semiconductor Manufacturing Company Ltd.—a position that was twice the size of the fund’s next largest holdings in this market—that returned about 16%.

Brazilian stocks were among the biggest detractors from the returns of the index and fund. Stocks from Brazil represented an average weight of approximately 15% of the fund, and returned roughly -15% in U.S. dollar terms. One example from this market was Petroleo Brasileiro Petrobras SA, a multinational energy corporation. The fund’s holdings in the ordinary shares of this firm returned about -4%, while the fund’s holdings in an American Depositary Receipt (ADR) based on the firm’s securities returned about -32%.

Stocks from India also performed poorly, reducing the fund’s and index’s returns. This country market represented an average weight of approximately 9% of the fund, while returning about -9% in U.S. dollar terms. One example from this market was India’s Housing Development Finance Corporation Ltd., or HDFC, which provides long-term housing loans to low and middle income individuals, and to corporations. The fund’s HDFC holdings returned roughly -17%.

As of 08/31/13:

Statistics


Number of Holdings			645
Weighted Average Market Cap ($ x 1,000,000)			$28,728
Price/Earnings Ratio (P/E)			14.1
Price/Book Ratio (P/B)			1.5
Portfolio Turnover Rate¹			15%

Sector Weightings % of Investments


Financials			29.0%
Energy			13.8%
Information Technology			10.9%
Materials			10.3%
Consumer Staples			9.2%
Telecommunication Services			9.1%
Consumer Discretionary			6.5%
Industrials			5.6%
Utilities			3.7%
Health Care			1.7%
Other			0.2%
Total			100.0%

Top Equity Holdings % of Net Assets²


Taiwan Semiconductor Manufacturing Co., Ltd. ADR			2.6%
China Mobile Ltd.			1.9%
China Construction Bank Corp., H Shares			1.7%
Industrial & Commercial Bank of China Ltd., H Shares			1.5%
Tencent Holdings Ltd.			1.4%
Gazprom OAO ADR			1.3%
LUKOIL OAO ADR			1.2%
Bank of China Ltd., H Shares			1.1%
Naspers Ltd., N Shares			1.1%
CNOOC Ltd.			1.1%
Total			14.9%

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

Source of Sector Classification: S&P and MSCI.


*		As a result of differing global market hours, the market price returns and the net asset value returns of an international ETF may differ, and particularly during times of higher market volatility in overseas markets, the difference may be substantial.
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 Equity ETFs

Schwab Emerging Markets Equity ETF^tm

Performance and Fund Facts as of 08/31/13

January 14, 2010 – August 31, 2013
Performance of Hypothetical
$10,000 Investment¹

Average Annual Total Returns¹


	1 Year			3 Years			Since Inception*


Fund: Schwab Emerging Markets Equity ETF^tm (1/14/10)
Market Price Return²		-2.79	%		-0.56	%	-1.13%
NAV Return²		-0.89	%		-0.07	%	-0.80%
FTSE Emerging Index (Net)		-0.59	%		0.17	%	-0.39%
ETF Category: Morningstar Diversified Emerging Markets³		-0.46	%		-0.95	%	-1.38%

Fund Expense Ratio⁴: 0.15%

Country Weightings % of Investments


China			21.8%
Brazil			13.7%
Taiwan			13.6%
South Africa			9.3%
India			8.0%
Russia			7.1%
Mexico			5.6%
Malaysia			4.9%
Thailand			2.8%
Indonesia			2.8%
Other Countries			10.4%
Total			100.0%

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

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.

Schwab International Equity 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 3/1/13		at 8/31/13		3/1/13–8/31/13

Schwab International Equity ETF^tm
Actual Return		0.09%	$	1,000.00	$	1,026.50	$	0.46
Hypothetical 5% Return		0.09%	$	1,000.00	$	1,024.75	$	0.46


Schwab International Small-Cap Equity ETF^tm
Actual Return		0.20%	$	1,000.00	$	1,029.10	$	1.02
Hypothetical 5% Return		0.20%	$	1,000.00	$	1,024.20	$	1.02


Schwab Emerging Markets Equity ETF^tm
Actual Return		0.15%	$	1,000.00	$	888.10	$	0.71
Hypothetical 5% Return		0.15%	$	1,000.00	$	1,024.45	$	0.77


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 365 days of the fiscal year.

12 Schwab International Equity ETFs

Schwab International Equity ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			9/1/10–			10/30/09¹–
	8/31/13			8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		24.96			25.99			23.82			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.66			0.76			0.68			0.38
Net realized and unrealized gains (losses)		3.42			(1.04	)		1.96	²		(1.52	)

Total from investment operations		4.08			(0.28	)		2.64			(1.14	)
Less distributions:
Distributions from net investment income		(0.72	)		(0.75	)		(0.47	)		(0.04	)

Net asset value at end of period		28.32			24.96			25.99			23.82

Total return (%)		16.55			(0.75	)		11.04			(4.57	)³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.09			0.13			0.13			0.14	^4,5
Gross operating expenses		0.09			0.13			0.13			0.14	^4,5
Net investment income (loss)		3.03			3.40			3.10			2.94	⁴
Portfolio turnover rate⁶		9			8			6			6	³
Net assets, end of period ($ x 1,000)		1,464,105			768,666			634,208			285,869

¹ Commencement of operations.

³ Not annualized.

⁴ Annualized.

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

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, 2013

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


				Cost		Value
Holdings by Category				($)		($)

	98	.9%	Common Stock		1,359,988,894		1,448,397,192
	0	.2%	Other Investment Companies		3,002,028		2,931,925
	0	.5%	Preferred Stock		5,345,884		6,953,128
	0	.0%	Rights		—		44


	99	.6%	Total Investments		1,368,336,806		1,458,282,289
	0	.1%	Collateral Invested for Securities on Loan		2,005,746		2,005,746
	0	.3%	Other Assets and Liabilities, Net				3,816,721


	100	.0%	Net Assets				1,464,104,756


	Number		Value
Security	of Shares		($)

Common Stock 98.9% of net assets

Australia 7.1%


Banks 2.4%
Australia & New Zealand Banking Group Ltd.		284,867		7,532,848
Bank of Queensland Ltd.		28,435		243,126
Bendigo & Adelaide Bank Ltd.		48,598		437,599
Commonwealth Bank of Australia		163,673		10,618,273
National Australia Bank Ltd.		235,752		6,813,605
Westpac Banking Corp.		328,914		9,195,610

				34,841,061


Capital Goods 0.1%
CSR Ltd.		122,012		244,507
GWA Group Ltd.		90,475		228,852
Leighton Holdings Ltd.		12,408		192,291

				665,650


Commercial & Professional Services 0.1%
ALS Ltd.		26,522		217,321
Brambles Ltd.		189,358		1,484,134
Downer EDI Ltd.		71,863		266,260

				1,967,715


Consumer Services 0.1%
Aristocrat Leisure Ltd.		31,537		126,960
Crown Ltd.		70,312		914,927
Flight Centre Ltd.		7,238		302,986
TABCORP Holdings Ltd.		41,238		118,266
Tatts Group Ltd.		140,107		400,564

				1,863,703


Diversified Financials 0.2%
ASX Ltd.		25,688		811,061
Challenger Ltd.		48,598		225,076
IOOF Holdings Ltd.		43,945		332,687
Macquarie Group Ltd.		36,190		1,413,722
Perpetual Ltd.		2,585		88,524

				2,871,070


Energy 0.5%
Caltex Australia Ltd.		6,204		104,489
Energy Resources of Australia Ltd. *		100,815		123,013
New Hope Corp., Ltd.		41,360		158,400
Oil Search Ltd.		160,787		1,202,921
Origin Energy Ltd.		119,573		1,411,094
Santos Ltd.		93,060		1,236,627
Whitehaven Coal Ltd.		92,967		164,360
Woodside Petroleum Ltd.		63,074		2,144,832
WorleyParsons Ltd.		27,401		537,147

				7,082,883


Food & Staples Retailing 0.6%
Metcash Ltd.		108,053		312,772
Wesfarmers Ltd.		96,679		3,501,115
Wesfarmers Ltd., Price Protected Shares		22,231		811,999
Woolworths Ltd.		117,359		3,728,433

				8,354,319


Food, Beverage & Tobacco 0.1%
Coca-Cola Amatil Ltd.		62,040		678,543
Treasury Wine Estates Ltd.		88,560		375,449

				1,053,992


Health Care Equipment & Services 0.1%
Ansell Ltd.		10,340		178,845
Cochlear Ltd.		5,170		264,077
Ramsay Health Care Ltd.		15,510		515,952
Sonic Healthcare Ltd.		49,115		675,849

				1,634,723


Insurance 0.4%
AMP Ltd.		294,735		1,244,277
Insurance Australia Group Ltd.		265,738		1,377,474
QBE Insurance Group Ltd.		99,781		1,350,823
Suncorp Group Ltd.		131,459		1,443,644

				5,416,218


Materials 1.4%
Adelaide Brighton Ltd.		58,421		174,309
Alumina Ltd. *		263,670		237,186
Amcor Ltd.		192,841		1,791,392
Arrium Ltd.		172,828		173,170
BHP Billiton Ltd.		312,418		9,947,615
BlueScope Steel Ltd. *		62,557		278,582
Boral Ltd.		77,108		288,440
DuluxGroup Ltd.		35,673		143,610
Fortescue Metals Group Ltd.		236,269		911,174
Gunns Ltd. *(b)(c)		346,320		—
Iluka Resources Ltd.		62,557		598,951
Incitec Pivot Ltd.		200,596		462,731
James Hardie Industries plc CDI		25,403		221,953
Newcrest Mining Ltd.		71,346		842,597
Nufarm Ltd.		26,367		110,374

14 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Orica Ltd.		35,673		595,728
Rio Tinto Ltd.		54,097		2,808,980
Sims Metal Management Ltd.		15,013		125,958

				19,712,750


Media 0.0%
Fairfax Media Ltd.		291,851		139,066
Seven West Media Ltd.		67,727		141,755

				280,821


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
CSL Ltd.		57,387		3,475,085


Real Estate 0.5%
CFS Retail Property Trust Group		307,098		552,504
Commonwealth Property Office Fund		565,622		579,337
Dexus Property Group		637,461		584,787
Goodman Group		93,239		384,490
GPT Group		219,797		694,955
Lend Lease Group		72,938		622,338
Mirvac Group		334,499		490,081
Stockland		302,445		1,004,759
Westfield Group		229,548		2,265,271
Westfield Retail Trust		265,738		691,104

				7,869,626


Retailing 0.0%
Harvey Norman Holdings Ltd.		69,795		187,110


Software & Services 0.0%
Computershare Ltd.		66,176		568,768


Telecommunication Services 0.1%
Telstra Corp., Ltd.		380,512		1,660,624


Transportation 0.2%
Asciano Ltd.		104,434		518,089
Aurizon Holdings Ltd.		115,808		469,307
Macquarie Atlas Roads Group		96,162		200,413
Qantas Airways Ltd. *		76,516		93,364
Sydney Airport		23,650		79,621
Toll Holdings Ltd.		28,435		138,278
Transurban Group		230,582		1,386,232

				2,885,304


Utilities 0.1%
AGL Energy Ltd.		75,999		1,066,094
APA Group		36,707		195,831
Envestra Ltd.		159,236		160,970
SP Ausnet		118,910		122,323

				1,545,218

				103,936,640

Austria 0.3%


Banks 0.1%
Erste Group Bank AG		30,366		971,185
Raiffeisen Bank International AG		5,687		194,671

				1,165,856


Capital Goods 0.0%
Andritz AG		4,948		272,069
Strabag SE		5,687		121,819

				393,888


Energy 0.1%
OMV AG		18,612		857,244


Insurance 0.0%
Vienna Insurance Group AG		4,653		236,092


Materials 0.1%
Voestalpine AG		19,129		816,611


Real Estate 0.0%
Immofinanz AG *		95,184		374,521


Telecommunication Services 0.0%
Telekom Austria AG		12,118		86,925

				3,931,137

Belgium 1.0%


Banks 0.1%
KBC GROEP N.V.		30,233		1,326,715


Diversified Financials 0.1%
Groupe Bruxelles Lambert S.A.		9,306		739,935


Food & Staples Retailing 0.1%
Colruyt S.A.		10,340		571,006
Delhaize Group		2,585		164,549

				735,555


Food, Beverage & Tobacco 0.4%
Anheuser-Busch InBev N.V.		79,861		7,411,347


Insurance 0.1%
Ageas		29,136		1,144,110


Materials 0.1%
Solvay S.A.		3,619		502,970
Umicore S.A.		11,374		525,072

				1,028,042


Media 0.0%
Telenet Group Holding N.V.		7,755		373,086


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
UCB S.A.		14,993		869,870


Telecommunication Services 0.0%
Belgacom S.A.		20,163		481,223

				14,109,883

Canada 8.1%


Automobiles & Components 0.1%
Magna International, Inc.		25,611		1,965,557


Banks 2.3%
Bank of Montreal		58,236		3,649,618
Bank of Nova Scotia		117,409		6,510,974
Canadian Imperial Bank of Commerce		51,700		4,031,512
National Bank of Canada		10,857		839,722
Royal Bank of Canada		155,100		9,542,127
The Toronto-Dominion Bank		103,400		8,784,442

				33,358,395


Capital Goods 0.1%
Bombardier, Inc., B Shares		206,800		939,020
Finning International, Inc.		26,000		515,613
SNC-Lavalin Group, Inc.		6,209		232,903

				1,687,536

See financial notes 15

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Consumer Services 0.0%
Tim Hortons, Inc.		11,424		623,777


Diversified Financials 0.1%
CI Financial Corp.		23,360		709,724
IGM Financial, Inc.		14,484		648,890

				1,358,614


Energy 2.0%
ARC Resources Ltd.		16,544		395,525
Cameco Corp.		29,514		560,959
Canadian Natural Resources Ltd.		111,748		3,404,665
Canadian Oil Sands Ltd.		51,700		990,480
Cenovus Energy, Inc.		71,076		2,033,438
Crescent Point Energy Corp.		40,713		1,482,788
Enbridge, Inc.		103,400		4,233,431
EnCana Corp.		79,384		1,353,795
Husky Energy, Inc.		51,700		1,459,499
Imperial Oil Ltd.		51,700		2,155,433
MEG Energy Corp. *		7,765		250,933
Pacific Rubiales Energy Corp.		23,300		440,202
Pembina Pipeline Corp.		14,526		450,004
Penn West Petroleum Ltd.		51,700		582,231
Suncor Energy, Inc.		144,079		4,848,616
Talisman Energy, Inc.		103,400		1,102,711
TransCanada Corp.		73,576		3,202,080

				28,946,790


Food & Staples Retailing 0.2%
Alimentation Couche-Tard, Inc., B Shares		7,920		456,025
George Weston Ltd.		4,224		333,307
Loblaw Cos. Ltd.		7,860		335,069
Metro, Inc.		8,864		566,678
Shoppers Drug Mart Corp.		25,672		1,434,361

				3,125,440


Food, Beverage & Tobacco 0.1%
Saputo, Inc.		16,168		716,670


Health Care Equipment & Services 0.1%
Catamaran Corp. *		19,144		1,046,759


Insurance 0.6%
Fairfax Financial Holdings Ltd.		186		76,306
Great-West Lifeco, Inc.		51,700		1,458,029
Intact Financial Corp.		3,268		188,880
Manulife Financial Corp.		184,601		3,022,144
Power Corp. of Canada		51,700		1,415,881
Power Financial Corp.		51,700		1,553,598
Sun Life Financial, Inc.		51,700		1,573,691

				9,288,529


Materials 1.1%
Agnico Eagle Mines Ltd.		20,192		607,732
Agrium, Inc.		13,728		1,172,521
Barrick Gold Corp.		103,400		1,971,158
Eldorado Gold Corp.		77,550		659,421
First Quantum Minerals Ltd.		60,564		1,004,137
Franco-Nevada Corp.		20,680		940,000
Goldcorp, Inc.		79,865		2,354,537
IAMGOLD Corp.		28,188		168,877
Kinross Gold Corp.		104,966		578,114
Potash Corp. of Saskatchewan, Inc.		88,160		2,603,265
Silver Wheaton Corp.		35,732		943,008
Teck Resources Ltd., Class B		56,644		1,424,020
Turquoise Hill Resources Ltd. *		83,754		435,086
Yamana Gold, Inc.		80,140		914,670

				15,776,546


Media 0.2%
Shaw Communications, Inc., B Shares		51,700		1,243,858
Thomson Reuters Corp.		51,700		1,691,804

				2,935,662


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Valeant Pharmaceuticals International, Inc. *		26,889		2,640,725


Real Estate 0.2%
Brookfield Asset Management, Inc., Class A		51,700		1,785,412
Brookfield Office Properties, Inc.		51,120		816,544

				2,601,956


Retailing 0.0%
Canadian Tire Corp. Ltd., Class A		6,008		507,397


Software & Services 0.1%
CGI Group, Inc., Class A *		33,720		1,117,181


Technology Hardware & Equipment 0.0%
Blackberry Ltd. *		54,594		550,650


Telecommunication Services 0.2%
BCE, Inc.		51,700		2,116,715
Rogers Communications, Inc., B Shares		30,658		1,208,708

				3,325,423


Transportation 0.4%
Canadian National Railway Co.		41,377		3,874,510
Canadian Pacific Railway Ltd.		17,334		2,035,418

				5,909,928


Utilities 0.1%
Canadian Utilities Ltd., Class A		18,808		609,223
Fortis, Inc.		24,601		707,783
TransAlta Corp.		27,401		351,701

				1,668,707

				119,152,242

Denmark 1.0%


Banks 0.1%
Danske Bank A/S *		105,985		2,116,946


Capital Goods 0.0%
FLSmidth & Co. A/S		7,238		393,799
Rockwool International A/S, B Shares		1,551		243,999

				637,798


Food, Beverage & Tobacco 0.1%
Carlsberg A/S, B Shares		13,959		1,350,907


Health Care Equipment & Services 0.1%
Coloplast A/S Class B		15,510		840,290
William Demant Holding A/S *		3,102		265,384

				1,105,674


Pharmaceuticals, Biotechnology & Life Sciences 0.6%
Novo Nordisk A/S, B Shares		41,295		6,883,291

16 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Novozymes A/S, B Shares		29,986		1,090,284

				7,973,575


Telecommunication Services 0.0%
TDC A/S		39,672		323,205


Transportation 0.1%
AP Moller - Maersk A/S, A Shares		50		401,955
AP Moller - Maersk A/S, B Shares		70		593,917
DSV A/S		25,333		663,176

				1,659,048

				15,167,153

Finland 0.7%


Automobiles & Components 0.0%
Nokian Renkaat Oyj		14,476		674,763


Capital Goods 0.2%
Kone Oyj, B Shares		21,324		1,740,494
Metso Oyj		4,698		180,330
Wartsila Oyj Abp		24,816		1,156,082

				3,076,906


Energy 0.0%
Neste Oil Oyj		7,830		143,512


Food & Staples Retailing 0.0%
Kesko Oyj, B Shares		6,204		186,681


Insurance 0.2%
Sampo Oyj, A Shares		51,610		2,144,349


Materials 0.1%
Stora Enso Oyj, R Shares		79,618		613,633
UPM-Kymmene Oyj		61,523		741,070

				1,354,703


Technology Hardware & Equipment 0.1%
Nokia Oyj *		387,009		1,493,167


Utilities 0.1%
Fortum Oyj		47,564		944,532

				10,018,613

France 8.0%


Automobiles & Components 0.2%
Compagnie Generale des Etablissements Michelin, B Shares		16,139		1,540,524
Peugeot S.A. *		16,027		227,182
Renault S.A.		17,578		1,253,485
Valeo S.A.		8,272		621,398

				3,642,589


Banks 0.8%
BNP Paribas S.A.		107,536		6,723,304
Credit Agricole S.A. *		112,189		1,130,943
Natixis		35,156		151,123
Societe Generale		72,897		3,183,080

				11,188,450


Capital Goods 1.2%
Alstom S.A.		25,850		907,535
Bouygues S.A.		13,959		435,586
Compagnie de Saint-Gobain		38,775		1,806,889
Eiffage S.A.		2,068		109,429
European Aeronautic Defence & Space Co., N.V.		51,190		2,943,300
Legrand S.A.		19,688		996,238
Rexel S.A.		10,857		249,099
Safran S.A.		21,197		1,174,335
Schneider Electric S.A.		54,808		4,184,424
Thales S.A.		7,755		381,216
Vallourec S.A.		12,408		742,634
Vinci S.A.		46,013		2,370,484
Zodiac Aerospace		4,136		597,456

				16,898,625


Commercial & Professional Services 0.1%
Bureau Veritas S.A.		31,020		935,042
Edenred		20,680		617,908
Societe BIC S.A.		4,364		500,515

				2,053,465


Consumer Durables & Apparel 0.6%
Christian Dior S.A.		6,204		1,060,614
Hermes International		1,034		345,903
Kering		10,340		2,330,107
LVMH Moet Hennessy Louis Vuitton S.A.		26,367		4,608,436

				8,345,060


Consumer Services 0.1%
Accor S.A.		23,265		877,522
Sodexo		11,374		1,001,401

				1,878,923


Diversified Financials 0.0%
Eurazeo S.A.		4,600		284,626
Wendel		3,619		439,646

				724,272


Energy 0.9%
CGG *		20,873		494,316
Technip S.A.		11,374		1,319,803
Total S.A.		207,034		11,442,588

				13,256,707


Food & Staples Retailing 0.2%
Carrefour S.A.		64,108		2,002,160
Casino Guichard Perrachon S.A.		6,721		634,630

				2,636,790


Food, Beverage & Tobacco 0.5%
Danone S.A.		62,557		4,647,355
Pernod-Ricard S.A.		25,333		2,934,216

				7,581,571


Health Care Equipment & Services 0.2%
bioMerieux		2,068		206,478
Essilor International S.A.		22,360		2,408,540

				2,615,018


Household & Personal Products 0.3%
L’Oreal S.A.		26,884		4,475,467


Insurance 0.3%
AXA S.A.		176,297		3,832,190
CNP Assurances		13,442		237,155
SCOR SE		14,476		451,910

				4,521,255

See financial notes 17

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Materials 0.4%
Air Liquide S.A.		31,020		4,070,255
Arkema S.A.		5,170		521,309
Eramet		1,551		143,140
Imerys S.A.		3,619		235,141
Lafarge S.A.		20,163		1,228,316

				6,198,161


Media 0.2%
Eutelsat Communications		12,925		385,851
JC Decaux S.A.		5,687		190,097
Lagardere S.C.A.		13,442		408,287
Publicis Groupe		13,959		1,036,645
SES		34,639		1,015,355
Societe Television Francaise 1		16,544		220,003

				3,256,238


Pharmaceuticals, Biotechnology & Life Sciences 0.8%
Sanofi		118,393		11,347,856


Real Estate 0.1%
Fonciere Des Regions		3,619		279,211
Gecina S.A.		2,585		306,806
Klepierre		9,306		368,249

				954,266


Retailing 0.0%
Groupe Fnac *		1,285		28,907


Semiconductors & Semiconductor Equipment 0.0%
STMicroelectronics N.V.		87,695		698,665


Software & Services 0.1%
AtoS		6,721		498,062
Cap Gemini S.A.		14,993		819,259
Dassault Systemes S.A.		5,170		658,879

				1,976,200


Technology Hardware & Equipment 0.1%
Alcatel-Lucent *		302,445		776,870


Telecommunication Services 0.4%
Iliad S.A.		2,068		494,926
Orange		194,909		1,972,786
Vivendi		136,648		2,764,925

				5,232,637


Transportation 0.1%
Aeroports de Paris		4,136		402,758
Bollore S.A.		1,034		454,773
Groupe Eurotunnel S.A. - Reg’d		43,945		325,772

				1,183,303


Utilities 0.4%
Electricite de France S.A.		30,503		852,691
GDF Suez		134,937		2,918,018
Suez Environnement Co.		39,292		584,163
Veolia Environnement		50,149		770,704

				5,125,576

				116,596,871

Germany 6.9%


Automobiles & Components 0.8%
Bayerische Motoren Werke AG		30,503		2,867,374
Continental AG		8,789		1,323,484
Daimler AG - Reg’d		107,645		7,369,562
Volkswagen AG		2,585		573,323

				12,133,743


Banks 0.1%
Commerzbank AG *		94,006		1,090,320


Capital Goods 0.8%
Brenntag AG		1,034		156,795
GEA Group AG		22,231		896,709
Hochtief AG		6,721		475,729
MAN SE		13,442		1,534,243
Osram Licht AG *		7,742		309,219
Siemens AG - Reg’d		83,905		8,860,929

				12,233,624


Commercial & Professional Services 0.0%
Bilfinger SE		3,619		334,136


Consumer Durables & Apparel 0.2%
Adidas AG		24,816		2,617,791
Puma SE		1,034		293,206

				2,910,997


Diversified Financials 0.4%
Deutsche Bank AG - Reg’d		103,725		4,480,645
Deutsche Boerse AG		23,265		1,627,427

				6,108,072


Food & Staples Retailing 0.1%
Metro AG		20,680		757,523


Food, Beverage & Tobacco 0.0%
Suedzucker AG		6,204		199,729


Health Care Equipment & Services 0.2%
Celesio AG		8,789		182,761
Fresenius Medical Care AG & Co. KGaA		24,299		1,575,920
Fresenius SE & Co. KGaA		14,476		1,737,777

				3,496,458


Household & Personal Products 0.1%
Beiersdorf AG		8,272		711,166
Henkel AG & Co. KGaA		14,993		1,216,039

				1,927,205


Insurance 0.8%
Allianz SE - Reg’d		46,530		6,650,824
Hannover Rueck SE		6,721		467,841
Muenchener Rueckversicherungs-Gesellschaft AG - Reg’d		21,197		3,854,356

				10,973,021


Materials 1.1%
BASF SE		96,679		8,430,315
Fuchs Petrolub SE		2,585		176,224
HeidelbergCement AG		21,714		1,504,616
K+S AG		20,688		500,983
Lanxess AG		8,272		531,902
Linde AG		16,554		3,175,990
Salzgitter AG		5,170		195,993
ThyssenKrupp AG *		41,360		867,416
Wacker Chemie AG		2,068		202,524

				15,585,963


Media 0.1%
Axel Springer AG		6,204		309,227

18 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Kabel Deutschland Holding AG		7,755		878,391

				1,187,618


Pharmaceuticals, Biotechnology & Life Sciences 0.8%
Bayer AG - Reg’d		89,441		9,911,419
Merck KGaA		6,721		1,018,723
QIAGEN N.V. *		24,299		487,018

				11,417,160


Retailing 0.0%
Fielmann AG		1,551		157,476


Semiconductors & Semiconductor Equipment 0.1%
Infineon Technologies AG		120,461		1,089,642


Software & Services 0.5%
SAP AG		92,757		6,840,765
Software AG		3,619		110,496
United Internet AG - Reg’d		10,065		346,922

				7,298,183


Telecommunication Services 0.3%
Deutsche Telekom AG - Reg’d		294,396		3,762,343
Telefonica Deutschland Holding AG		20,358		141,925

				3,904,268


Transportation 0.2%
Deutsche Lufthansa AG - Reg’d *		23,265		414,296
Deutsche Post AG - Reg’d		90,992		2,622,808
Fraport AG		4,653		299,655

				3,336,759


Utilities 0.3%
E.ON SE		175,009		2,764,587
RWE AG		51,183		1,403,453

				4,168,040

				100,309,937

Greece 0.0%


Telecommunication Services 0.0%
Hellenic Telecommunications Organization S.A. *		38,631		348,422

Hong Kong 3.2%


Automobiles & Components 0.0%
Xinyi Glass Holdings Ltd. (a)		456,000		426,339


Banks 0.3%
Bank of East Asia Ltd.		156,000		603,528
BOC Hong Kong Holdings Ltd.		517,000		1,630,126
Hang Seng Bank Ltd.		103,400		1,606,791

				3,840,445


Capital Goods 0.4%
Hopewell Holdings Ltd.		258,500		820,064
Hutchison Whampoa Ltd.		218,000		2,527,365
Jardine Matheson Holdings Ltd.		24,600		1,306,752
Jardine Strategic Holdings Ltd.		20,000		649,000
Johnson Electric Holdings Ltd.		531,000		348,549
Shun Tak Holdings Ltd.		178,000		92,278

				5,744,008


Consumer Durables & Apparel 0.2%
Li & Fung Ltd.		694,000		1,020,272
Prada S.p.A.		31,200		307,397
Samsonite International S.A.		156,600		405,919
Techtronic Industries Co., Ltd.		258,500		634,716
Yue Yuen Industrial Holdings Ltd.		40,000		123,285

				2,491,589


Consumer Services 0.3%
China Travel International Investment Hong Kong Ltd.		1,034,000		194,682
Galaxy Entertainment Group Ltd. *		157,000		955,638
Melco International Development Ltd.		81,000		184,680
Sands China Ltd.		255,900		1,471,827
Shangri-La Asia Ltd.		250,000		384,943
SJM Holdings Ltd.		149,000		381,992
Wynn Macau Ltd.		80,000		241,927

				3,815,689


Diversified Financials 0.1%
Hong Kong Exchanges & Clearing Ltd.		130,100		1,996,531


Energy 0.0%
Brightoil Petroleum Holdings Ltd. *(a)		1,338,000		226,037


Food & Staples Retailing 0.0%
Sun Art Retail Group Ltd.		258,500		352,027


Food, Beverage & Tobacco 0.1%
China Mengniu Dairy Co., Ltd.		74,000		313,009
Tingyi Cayman Islands Holding Corp.		178,000		440,731
Want Want China Holdings Ltd.		736,000		1,091,509

				1,845,249


Insurance 0.4%
AIA Group Ltd.		1,265,000		5,554,685


Materials 0.0%
Huabao International Holdings Ltd. (a)		175,000		77,859
Shougang Fushan Resources Group Ltd. (a)		1,034,000		346,694
United Co. RUSAL plc *(a)		389,000		113,373

				537,926


Media 0.0%
Television Broadcasts Ltd.		24,000		157,227


Real Estate 0.8%
Cheung Kong (Holdings) Ltd.		159,000		2,269,847
Hang Lung Group Ltd.		50,000		245,345
Hang Lung Properties Ltd.		175,000		547,270
Henderson Land Development Co., Ltd.		77,000		451,808
Hongkong Land Holdings Ltd.		134,000		865,640
Hutchison Harbour Ring Ltd.		1,232,000		95,327
Hysan Development Co., Ltd.		31,000		134,723
Kerry Properties Ltd.		65,500		265,230
Lifestyle Properties Development Ltd. *(b)		12,925		467
New World Development Co., Ltd.		517,000		725,389
Sino Land Co., Ltd.		225,000		302,344
Sun Hung Kai Properties Ltd.		170,000		2,205,458
Swire Pacific Ltd., Class A		72,000		825,441
Swire Properties Ltd.		206,800		578,711
The Link REIT		258,500		1,185,092

See financial notes 19

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Wharf Holdings Ltd.		129,000		1,060,527
Wheelock & Co., Ltd.		120,000		612,813

				12,371,432


Retailing 0.1%
Esprit Holdings Ltd.		168,100		287,017
Lifestyle International Holdings Ltd.		258,500		556,710

				843,727


Semiconductors & Semiconductor Equipment 0.0%
ASM Pacific Technology Ltd.		51,700		532,708
Semiconductor Manufacturing International Corp. *		2,088,000		148,096

				680,804


Technology Hardware & Equipment 0.1%
AAC Technologies Holdings, Inc.		68,000		310,430
VTech Holdings Ltd.		38,900		571,882

				882,312


Telecommunication Services 0.0%
PCCW Ltd.		517,000		232,685


Transportation 0.1%
Cathay Pacific Airways Ltd.		62,000		106,340
Hopewell Highway Infrastructure Ltd.		775,500		370,028
MTR Corp., Ltd.		150,000		565,808

				1,042,176


Utilities 0.3%
Cheung Kong Infrastructure Holdings Ltd.		72,000		486,536
CLP Holdings Ltd.		124,500		995,435
Hong Kong & China Gas Co., Ltd.		566,300		1,308,689
Power Assets Holdings Ltd.		142,500		1,228,480

				4,019,140

				47,060,028

Ireland 0.2%


Banks 0.0%
Bank of Ireland *		2,834,715		826,066


Food, Beverage & Tobacco 0.1%
Kerry Group plc, A Shares		16,027		1,008,688


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Elan Corp. plc *		72,380		1,092,314


Transportation 0.0%
Ryanair Holdings plc		11,021		96,000

				3,023,068

Israel 0.4%


Banks 0.1%
Bank Hapoalim B.M.		117,876		548,435
Bank Leumi Le-Israel *		100,815		331,935
First International Bank of Israel Ltd.		13,959		205,219
Israel Discount Bank Ltd., A Shares *		94,617		149,224
Mizrahi Tefahot Bank Ltd.		11,374		122,377

				1,357,190


Energy 0.0%
Delek Group Ltd.		517		144,353


Food, Beverage & Tobacco 0.0%
Osem Investments Ltd.		6,721		138,534


Materials 0.0%
Israel Chemicals Ltd.		52,734		367,373
The Israel Corp., Ltd. *		196		83,389

				450,762


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Teva Pharmaceutical Industries Ltd.		97,863		3,782,171


Real Estate 0.0%
Azrieli Group		4,136		122,801
Gazit-Globe Ltd.		7,755		94,137

				216,938


Software & Services 0.0%
NICE Systems Ltd.		5,170		195,520


Telecommunication Services 0.0%
Bezeq The Israeli Telecommunication Corp., Ltd.		191,290		313,061

				6,598,529

Italy 1.9%


Automobiles & Components 0.1%
Fiat S.p.A. *		70,342		529,620
Pirelli & C. S.p.A.		47,047		553,983

				1,083,603


Banks 0.4%
Banca Monte dei Paschi di Siena S.p.A. *		517,000		149,023
Banco Popolare Societa Cooperativa *		155,100		220,058
Intesa Sanpaolo S.p.A.		1,255,276		2,457,983
UniCredit S.p.A.		449,993		2,538,398
Unione di Banche Italiane S.c.p.A.		72,897		350,845

				5,716,307


Capital Goods 0.1%
Fiat Industrial S.p.A.		91,509		1,093,817
Finmeccanica S.p.A. *		26,100		133,188
Prysmian S.p.A.		14,131		313,037

				1,540,042


Consumer Durables & Apparel 0.0%
Luxottica Group S.p.A.		13,959		726,130


Consumer Services 0.0%
Autogrill S.p.A. *		23,782		374,426


Diversified Financials 0.1%
EXOR S.p.A.		14,476		493,236
Mediobanca S.p.A.		60,489		375,354

				868,590


Energy 0.5%
Eni S.p.A.		259,534		5,913,589
Saipem S.p.A.		31,020		688,806
Tenaris S.A.		47,564		1,048,016

				7,650,411


Food, Beverage & Tobacco 0.0%
Parmalat S.p.A.		121,495		392,178

20 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Insurance 0.2%
Assicurazioni Generali S.p.A.		127,182		2,431,682


Materials 0.0%
Buzzi Unicem S.p.A.		8,272		111,038


Media 0.0%
Mediaset S.p.A. *		85,822		351,264


Telecommunication Services 0.1%
Telecom Italia S.p.A.		1,039,170		725,547
Telecom Italia S.p.A. - RSP		670,032		371,425

				1,096,972


Transportation 0.1%
Atlantia S.p.A.		52,371		943,310


Utilities 0.3%
Enel Green Power S.p.A.		52,217		109,959
Enel S.p.A.		789,976		2,606,239
Snam S.p.A.		176,297		822,927
Terna-Rete Elettrica Nazionale S.p.A.		161,821		689,635

				4,228,760

				27,514,713

Japan 19.8%


Automobiles & Components 2.8%
Aisin Seiki Co., Ltd.		25,900		999,149
Bridgestone Corp.		62,700		2,064,118
Daihatsu Motor Co., Ltd.		11,000		206,625
Denso Corp.		51,700		2,371,197
Fuji Heavy Industries Ltd.		71,000		1,728,777
Honda Motor Co., Ltd.		196,000		7,081,690
Isuzu Motors Ltd.		96,000		588,045
Koito Manufacturing Co., Ltd.		7,000		124,069
Mazda Motor Corp. *		224,000		901,799
Mitsubishi Motors Corp. *		103,400		1,090,751
NGK Spark Plug Co., Ltd.		14,000		271,538
NHK Spring Co., Ltd.		5,000		53,254
Nissan Motor Co., Ltd.		258,500		2,574,066
Nok Corp.		51,700		758,256
Stanley Electric Co., Ltd.		9,700		186,951
Sumitomo Rubber Industries Ltd.		51,700		729,802
Suzuki Motor Corp.		51,700		1,112,882
The Yokohama Rubber Co., Ltd.		18,000		159,058
Toyoda Gosei Co., Ltd.		4,700		114,057
Toyota Industries Corp.		11,300		459,532
Toyota Motor Corp.		278,670		16,871,017
Yamaha Motor Co., Ltd.		51,700		672,893

				41,119,526


Banks 2.2%
Aozora Bank Ltd.		297,000		856,658
Fukuoka Financial Group, Inc.		107,000		458,034
Hokuhoku Financial Group, Inc.		517,000		964,287
Mitsubishi UFJ Financial Group, Inc.		1,507,800		8,851,784
Mizuho Financial Group, Inc.		2,585,000		5,269,327
North Pacific Bank Ltd.		103,400		404,684
Resona Holdings, Inc.		258,500		1,235,657
Senshu Ikeda Holdings, Inc.		70,180		340,475
Seven Bank Ltd.		51,700		169,672
Shinsei Bank Ltd.		517,000		1,022,249
Sumitomo Mitsui Financial Group, Inc.		144,600		6,410,946
Sumitomo Mitsui Trust Holdings, Inc.		374,000		1,631,473
Suruga Bank Ltd.		15,000		236,508
The 77 Bank Ltd.		28,000		126,709
The Awa Bank Ltd.		44,000		221,088
The Bank of Kyoto Ltd.		23,000		189,410
The Bank of Yokohama Ltd.		162,000		853,631
The Chiba Bank Ltd.		45,000		308,668
The Chugoku Bank Ltd.		10,000		134,434
The Gunma Bank Ltd.		29,000		156,653
The Hachijuni Bank Ltd.		31,000		175,040
The Hiroshima Bank Ltd.		38,000		152,596
The Iyo Bank Ltd.		19,000		190,552
The Joyo Bank Ltd.		37,000		191,571
The Juroku Bank Ltd.		47,000		171,014
The Shizuoka Bank Ltd.		60,000		637,212
Yamaguchi Financial Group, Inc.		16,000		149,376

				31,509,708


Capital Goods 2.9%
Amada Co., Ltd.		21,000		155,817
Asahi Glass Co., Ltd.		56,000		328,757
COMSYS Holdings Corp.		51,700		642,858
Daikin Industries Ltd.		51,700		2,497,661
Ebara Corp.		31,000		165,561
FANUC Corp.		19,690		3,012,250
Furukawa Electric Co., Ltd.		46,000		92,830
GS Yuasa Corp.		19,000		93,920
Hino Motors Ltd.		14,000		183,642
Hitachi Construction Machinery Co., Ltd.		5,500		108,358
IHI Corp.		277,000		1,123,641
ITOCHU Corp.		151,700		1,722,405
JGC Corp.		13,000		445,854
JTEKT Corp.		51,700		678,162
Kajima Corp.		39,000		139,520
Kawasaki Heavy Industries Ltd.		302,000		1,058,839
Keihan Electric Railway Co., Ltd.		80,000		322,886
Komatsu Ltd.		103,900		2,282,062
Kubota Corp.		147,000		2,001,651
LIXIL Group Corp.		51,700		1,048,069
Makita Corp.		20,400		1,083,259
Marubeni Corp.		103,000		751,649
MISUMI Group, Inc.		5,000		123,070
Mitsubishi Corp.		155,100		2,911,830
Mitsubishi Electric Corp.		178,000		1,779,728
Mitsubishi Heavy Industries Ltd.		517,000		2,840,167
Mitsui & Co., Ltd.		155,100		2,164,113
Nabtesco Corp.		4,900		105,376
NGK Insulators Ltd.		19,000		264,914
Nidec Corp.		14,900		1,116,190
NSK Ltd.		28,000		262,834
NTN Corp. *		32,000		118,718
Obayashi Corp.		41,000		234,011
Shimizu Corp.		37,000		162,911
SMC Corp.		4,000		840,646
Sojitz Corp.		258,500		463,701
Sumitomo Corp.		155,100		1,969,674
Sumitomo Electric Industries Ltd.		103,400		1,396,372
Sumitomo Heavy Industries Ltd.		25,000		113,387
Taisei Corp.		60,000		246,445

See financial notes 21

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
The Japan Steel Works Ltd.		26,000		133,558
THK Co., Ltd.		51,700		1,008,022
Toshiba Corp.		433,000		1,725,557
TOTO Ltd.		17,000		211,211
Toyota Tsusho Corp.		51,700		1,192,449
Ushio, Inc.		51,700		580,680

				41,905,215


Commercial & Professional Services 0.2%
Dai Nippon Printing Co., Ltd.		31,000		301,422
Secom Co., Ltd.		34,700		1,991,143
Toppan Printing Co., Ltd.		33,000		243,174

				2,535,739


Consumer Durables & Apparel 0.6%
Asics Corp.		8,200		144,251
Casio Computer Co., Ltd.		12,000		103,226
Haseko Corp. *		268,500		314,707
NAMCO BANDAI Holdings, Inc.		51,700		826,231
Nikon Corp.		51,700		874,708
Panasonic Corp. *		258,500		2,355,389
Sega Sammy Holdings, Inc.		37,700		901,434
Sekisui Chemical Co., Ltd.		21,000		193,487
Sekisui House Ltd.		37,000		449,136
Sharp Corp. *		75,000		293,533
Shimano, Inc.		4,900		407,022
Sony Corp.		103,400		2,078,223
Sumitomo Forestry Co., Ltd.		51,700		493,209

				9,434,556


Consumer Services 0.1%
Benesse Holdings, Inc.		4,700		170,535
Oriental Land Co., Ltd.		7,100		1,146,970

				1,317,505


Diversified Financials 0.5%
Aiful Corp. *		10,000		82,862
Credit Saison Co., Ltd.		51,700		1,190,868
Daiwa Securities Group, Inc.		160,000		1,298,069
Mitsubishi UFJ Lease & Finance Co., Ltd.		103,400		470,024
Nomura Holdings, Inc.		386,000		2,698,833
ORIX Corp.		151,700		2,093,480
SBI Holdings, Inc.		15,200		159,258

				7,993,394


Energy 0.2%
Cosmo Oil Co., Ltd. *		125,000		258,625
Idemitsu Kosan Co., Ltd.		2,100		175,294
Inpex Corp.		235		1,067,039
JX Holdings, Inc.		247,700		1,312,786
Showa Shell Sekiyu K.K.		51,700		514,813
TonenGeneral Sekiyu K.K.		19,000		172,930

				3,501,487


Food & Staples Retailing 0.4%
Aeon Co., Ltd.		103,400		1,416,395
Lawson, Inc.		5,600		422,362
Seven & i Holdings Co., Ltd.		103,400		3,567,334

				5,406,091


Food, Beverage & Tobacco 0.8%
Ajinomoto Co., Inc.		82,000		1,053,886
Asahi Group Holdings Ltd.		51,700		1,287,823
Japan Tobacco, Inc.		121,400		4,126,474
Kagome Co., Ltd.		51,700		887,882
Kewpie Corp.		51,700		781,968
Kikkoman Corp.		11,000		188,014
Kirin Holdings Co., Ltd.		85,000		1,169,546
MEIJI Holdings Co., Ltd.		5,100		264,577
Nippon Meat Packers, Inc.		15,000		211,130
Nisshin Seifun Group, Inc.		13,500		152,316
Nissin Foods Holdings Co., Ltd.		6,000		237,273
Sapporo Holdings Ltd.		52,000		187,087
Toyo Suisan Kaisha Ltd.		7,000		211,038
Yakult Honsha Co., Ltd.		13,000		551,852
Yamazaki Baking Co., Ltd.		20,000		214,850

				11,525,716


Health Care Equipment & Services 0.3%
Alfresa Holdings Corp.		3,600		170,983
M3, Inc.		96		251,558
Medipal Holdings Corp.		14,400		161,003
Miraca Holdings, Inc.		5,200		232,666
Olympus Corp. *		42,300		1,223,537
Suzuken Co., Ltd.		4,600		142,058
Sysmex Corp.		10,000		581,970
Terumo Corp.		18,500		889,976

				3,653,751


Household & Personal Products 0.2%
Kao Corp.		51,700		1,512,297
Lion Corp.		30,000		181,624
Shiseido Co., Ltd.		51,700		822,015
Unicharm Corp.		8,600		447,026

				2,962,962


Insurance 0.5%
MS&AD Insurance Group Holdings, Inc.		51,700		1,309,428
NKSJ Holdings, Inc.		21,000		514,967
Sony Financial Holdings, Inc.		31,300		511,378
T&D Holdings, Inc.		103,400		1,260,423
The Dai-ichi Life Insurance Co., Ltd.		1,034		1,388,995
Tokio Marine Holdings, Inc.		76,900		2,378,754

				7,363,945


Materials 1.4%
Air Water, Inc.		9,000		121,174
Asahi Kasei Corp.		120,000		885,491
Daicel Corp.		19,000		164,990
Daido Steel Co., Ltd.		23,000		123,070
Denki Kagaku Kogyo K.K.		38,000		139,428
DIC Corp.		45,000		115,579
Dowa Holdings Co., Ltd.		16,000		143,505
Hitachi Chemical Co., Ltd.		51,700		855,739
JFE Holdings, Inc.		54,800		1,216,475
JSR Corp.		51,700		906,324
Kaneka Corp.		19,000		122,000
Kansai Paint Co., Ltd.		17,000		197,870
Kobe Steel Ltd. *		517,000		827,284
Kuraray Co. Ltd.		51,700		574,884
Maruichi Steel Tube Ltd.		4,600		106,614
Mitsubishi Chemical Holdings Corp.		258,500		1,222,484
Mitsubishi Gas Chemical Co., Inc.		31,000		250,553
Mitsubishi Materials Corp.		91,000		357,081
Mitsui Chemicals, Inc.		65,000		173,572
Nippon Kayaku Co., Ltd.		10,000		126,790
Nippon Paint Co., Ltd.		15,000		216,786

22 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Nippon Paper Industries Co., Ltd.		10,500		143,403
Nippon Shokubai Co., Ltd.		15,000		152,729
Nippon Steel & Sumitomo Metal Corp.		854,000		2,437,140
Nissan Chemical Industries Ltd.		11,200		154,105
Nitto Denko Corp.		20,100		1,073,475
Oji Holdings Corp.		66,000		265,036
Shin-Etsu Chemical Co., Ltd.		51,700		3,124,711
Showa Denko K.K.		517,000		653,396
Sumitomo Chemical Co., Ltd.		97,000		353,932
Sumitomo Metal Mining Co., Ltd.		65,000		878,459
Sumitomo Osaka Cement Co., Ltd.		37,000		136,890
Taiheiyo Cement Corp.		84,000		315,915
Taiyo Nippon Sanso Corp.		18,000		118,331
Teijin Ltd.		67,000		147,500
Toray Industries, Inc.		185,000		1,138,868
Tosoh Corp.		37,000		132,742
Toyo Seikan Group Holdings Ltd.		13,000		220,608
Toyobo Co., Ltd.		75,000		123,834
Ube Industries Ltd.		83,000		147,195
Zeon Corp.		12,000		140,284

				20,706,246


Media 0.1%
Dentsu, Inc.		28,400		950,864
Hakuhodo DY Holdings, Inc.		10,340		706,090
Toho Co., Ltd.		6,800		135,147

				1,792,101


Pharmaceuticals, Biotechnology & Life Sciences 1.0%
Astellas Pharma, Inc.		51,700		2,650,471
Chugai Pharmaceutical Co., Ltd.		51,700		1,063,350
Daiichi Sankyo Co., Ltd.		51,700		891,043
Dainippon Sumitomo Pharma Co., Ltd.		42,700		548,792
Eisai Co., Ltd.		51,700		2,110,365
Hisamitsu Pharmaceutical Co., Inc.		4,800		258,309
Kyowa Hakko Kirin Co., Ltd.		10,000		101,208
Mitsubishi Tanabe Pharma Corp.		9,800		133,743
Ono Pharmaceutical Co., Ltd.		5,200		314,284
Otsuka Holdings Co., Ltd.		51,700		1,604,510
Santen Pharmaceutical Co., Ltd.		4,800		223,085
Sawai Pharmaceutical Co., Ltd.		1,000		130,765
Shionogi & Co., Ltd.		51,700		1,011,711
Taisho Pharmaceutical Holdings Co., Ltd.		2,600		173,837
Takeda Pharmaceutical Co., Ltd.		69,900		3,184,559
Tsumura & Co.		3,900		104,859

				14,504,891


Real Estate 0.8%
Aeon Mall Co., Ltd.		8,200		214,538
Daito Trust Construction Co., Ltd.		6,900		632,931
Daiwa House Industry Co., Ltd.		47,000		847,882
Hulic Co., Ltd.		18,800		232,425
Mitsubishi Estate Co., Ltd.		138,711		3,619,224
Mitsui Fudosan Co., Ltd.		87,000		2,753,249
Nomura Real Estate Holdings, Inc.		6,500		149,060
NTT Urban Development Corp.		517		613,350
Sumitomo Real Estate Sales Co., Ltd.		5,170		301,405
Sumitomo Realty & Development Co., Ltd.		42,000		1,853,539
Tokyo Tatemono Co., Ltd.		67,000		572,930
Tokyu Land Corp.		32,000		298,099

				12,088,632


Retailing 0.4%
Aoyama Trading Co., Ltd.		4,100		101,669
Fast Retailing Co., Ltd.		5,500		1,788,208
Isetan Mitsukoshi Holdings Ltd.		91,400		1,190,534
J Front Retailing Co., Ltd.		34,000		272,374
Komeri Co., Ltd.		4,500		112,001
Marui Group Co., Ltd.		51,700		484,778
Nitori Holdings Co., Ltd.		6,500		582,327
Point, Inc.		5,170		243,970
Sanrio Co., Ltd.		3,700		191,194
Takashimaya Co., Ltd.		15,000		132,243
USS Co., Ltd.		5,170		647,600
Yamada Denki Co., Ltd.		20,680		655,504

				6,402,402


Semiconductors & Semiconductor Equipment 0.1%
Advantest Corp.		13,000		160,322
Dainippon Screen Manufacturing Co., Ltd. *		45,000		213,270
Disco Corp.		2,000		118,025
Rohm Co., Ltd.		6,500		229,883
Sumco Corp.		7,600		63,517
Tokyo Electron Ltd.		19,400		809,693

				1,594,710


Software & Services 0.4%
DeNA Co., Ltd.		11,200		220,199
Fujitsu Ltd.		240,000		887,937
KONAMI Corp.		24,500		542,363
Nintendo Co., Ltd.		10,300		1,167,365
Nomura Research Institute Ltd.		37,700		1,177,705
NTT Data Corp.		100		358,763
Trend Micro, Inc.		17,000		596,035
Yahoo! Japan Corp.		1,551		769,849

				5,720,216


Technology Hardware & Equipment 1.4%
Alps Electric Co., Ltd.		51,700		372,541
Brother Industries Ltd.		51,700		528,513
Canon, Inc.		121,700		3,656,644
FUJIFILM Holdings Corp.		51,700		1,132,905
Hamamatsu Photonics K.K.		2,100		68,063
Hirose Electric Co., Ltd.		1,500		198,135
Hitachi Ltd.		517,000		3,124,711
Hoya Corp.		51,700		1,103,924
Ibiden Co., Ltd.		6,600		95,386
Keyence Corp.		5,500		1,821,842
Konica Minolta, Inc.		70,000		577,180
Kyocera Corp.		17,500		1,797,890
Murata Manufacturing Co., Ltd.		27,200		1,871,274
NEC Corp.		212,000		451,593
OMRON Corp.		37,700		1,183,468
Ricoh Co., Ltd.		93,000		1,011,374
Seiko Epson Corp.		10,800		152,894
Taiyo Yuden Co., Ltd.		8,000		101,350
TDK Corp.		8,300		301,157
Yaskawa Electric Corp.		14,000		166,662
Yokogawa Electric Corp.		10,000		126,280

				19,843,786

See financial notes 23

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Telecommunication Services 0.9%
KDDI Corp.		56,600		2,708,424
Nippon Telegraph & Telephone Corp.		51,700		2,632,029
NTT DoCoMo, Inc.		1,651		2,650,283
SoftBank Corp.		89,600		5,652,795

				13,643,531


Transportation 1.0%
ANA Holdings, Inc. (a)		517,000		1,053,865
Central Japan Railway Co.		18,700		2,146,074
East Japan Railway Co.		51,700		3,973,073
Hankyu Hanshin Holdings, Inc.		69,000		373,429
Japan Airlines Co., Ltd.		4,670		247,982
Keikyu Corp.		26,000		222,861
Keio Corp.		28,000		189,777
Kintetsu Corp.		132,000		491,056
Mitsubishi Logistics Corp.		6,000		77,419
Mitsui OSK Lines Ltd. *		86,000		340,967
Nippon Express Co., Ltd.		33,000		154,716
Nippon Yusen K.K.		120,000		342,455
Odakyu Electric Railway Co., Ltd.		30,000		274,270
Tobu Railway Co., Ltd.		89,000		449,014
Tokyu Corp.		192,000		1,234,796
West Japan Railway Co.		51,700		2,139,347
Yamato Holdings Co., Ltd.		51,700		1,113,936

				14,825,037


Utilities 0.6%
Chubu Electric Power Co., Inc.		103,400		1,294,147
Electric Power Development Co., Ltd.		11,000		339,703
Hokkaido Electric Power Co., Inc. *		16,500		194,068
Hokuriku Electric Power Co.		16,700		221,441
Kyushu Electric Power Co., Inc. *		51,700		672,893
Osaka Gas Co., Ltd.		142,000		574,571
Shikoku Electric Power Co., Inc. *		12,200		190,744
The Chugoku Electric Power Co., Inc.		52,300		724,412
The Kansai Electric Power Co., Inc. *		103,400		1,162,414
Toho Gas Co., Ltd.		45,000		224,736
Tohoku Electric Power Co., Inc. *		51,700		568,560
Tokyo Electric Power Co., Inc. *		155,100		790,399
Tokyo Gas Co., Ltd.		247,000		1,283,902

				8,241,990

				289,593,137

Netherlands 2.5%


Capital Goods 0.2%
Koninklijke Boskalis Westminster N.V.		4,136		163,339
Koninklijke Philips N.V.		114,774		3,539,866

				3,703,205


Commercial & Professional Services 0.0%
Randstad Holding N.V.		14,993		694,809


Diversified Financials 0.3%
ING Groep N.V. CVA *		375,859		4,071,418


Energy 0.1%
Fugro N.V. CVA		8,789		538,839
Koninklijke Vopak N.V.		2,585		144,677
SBM Offshore N.V. *		18,740		367,323

				1,050,839


Food & Staples Retailing 0.1%
Koninklijke Ahold N.V.		124,080		1,972,341


Food, Beverage & Tobacco 0.7%
DE Master Blenders 1753 N.V. *		80,135		1,306,032
Heineken Holding N.V.		11,374		684,798
Heineken N.V.		28,435		1,947,834
Unilever N.V. CVA		158,719		5,948,980

				9,887,644


Insurance 0.1%
AEGON N.V.		208,351		1,482,452


Materials 0.3%
Akzo Nobel N.V.		23,782		1,395,316
ArcelorMittal		102,366		1,311,059
Koninklijke DSM N.V.		19,129		1,407,724

				4,114,099


Media 0.1%
Reed Elsevier N.V.		71,863		1,294,876
Wolters Kluwer N.V.		31,020		730,936

				2,025,812


Real Estate 0.2%
Corio N.V.		8,341		326,763
Unibail-Rodamco SE		10,340		2,319,199

				2,645,962


Semiconductors & Semiconductor Equipment 0.2%
ASML Holding N.V.		30,136		2,634,983


Technology Hardware & Equipment 0.1%
Gemalto N.V.		7,258		833,295


Telecommunication Services 0.1%
Koninklijke (Royal) KPN N.V. *		312,094		909,475
Ziggo N.V.		10,340		409,098

				1,318,573


Transportation 0.0%
TNT Express N.V.		46,530		409,234

				36,844,666

New Zealand 0.1%


Consumer Services 0.0%
SKYCITY Entertainment Group Ltd.		96,162		289,362


Materials 0.0%
Fletcher Building Ltd.		39,809		269,758


Real Estate 0.0%
Kiwi Income Property Trust		263,670		235,576


Telecommunication Services 0.0%
Chorus Ltd.		48,081		108,232
Telecom Corp. of New Zealand Ltd.		205,766		362,112

				470,344


Transportation 0.1%
Auckland International Airport Ltd.		299,860		714,427

				1,979,467

24 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number			Value
Security	of Shares			($)

Norway 0.7%


Banks 0.1%
DnB A.S.A.		119,944			1,859,293


Energy 0.3%
Aker Solutions A.S.A.		14,511			219,849
Seadrill Ltd.		36,190			1,667,628
Statoil A.S.A.		113,600			2,491,285
Subsea 7 S.A.		21,197			434,074

					4,812,836


Food, Beverage & Tobacco 0.1%
Orkla A.S.A.		103,400			745,067


Insurance 0.0%
Gjensidige Forsikring A.S.A.		10,340			146,702


Materials 0.1%
Norsk Hydro A.S.A.		86,856			349,210
Yara International A.S.A.		18,522			731,390

					1,080,600


Media 0.0%
Schibsted A.S.A.		2,088			102,075


Telecommunication Services 0.1%
Telenor A.S.A.		66,693			1,384,246

��					10,130,819

Portugal 0.2%


Banks 0.0%
Banco Espirito Santo S.A. - Reg’d *		110,222			115,399


Energy 0.0%
Galp Energia, SGPS, S.A.		24,816			416,719


Food & Staples Retailing 0.1%
Jeronimo Martins, SGPS, S.A.		35,156			680,980


Telecommunication Services 0.0%
Portugal Telecom, SGPS, S.A. - Reg’d		58,938			222,034


Utilities 0.1%
EDP - Energias de Portugal S.A.		262,119			924,215

					2,359,347

Republic of Korea 3.9%


Automobiles & Components 0.5%
Hankook Tire Co., Ltd.		7,937			411,847
Hyundai Mobis		7,816			1,964,474
Hyundai Motor Co.		13,795			3,094,415
Hyundai Wia Corp.		2,062			318,574
Kia Motors Corp.		26,068			1,578,100
Mando Corp.		1,575			176,647

					7,544,057


Banks 0.4%
BS Financial Group, Inc.		4,800			61,619
Hana Financial Group, Inc.		35,600			1,122,472
KB Financial Group, Inc. ADR		51,700			1,634,237
Shinhan Financial Group Co., Ltd. ADR		61,134			2,188,597
Woori Finance Holdings Co., Ltd.		31,050			310,486

					5,317,411


Capital Goods 0.4%
CJ Corp.		1,000			95,942
Daelim Industrial Co., Ltd.		1,800			141,885
Daewoo International Corp.		5,027			158,502
Daewoo Shipbuilding & Marine Engineering Co., Ltd.		5,280			141,031
Doosan Corp.		1,746			217,847
Doosan Heavy Industries & Construction Co., Ltd.		2,150			82,607
Hyundai Development Co.		6,680			129,382
Hyundai Engineering & Construction Co., Ltd.		5,409			279,696
Hyundai Heavy Industries Co., Ltd.		5,447			1,116,339
KCC Corp.		300			113,103
LG Corp.		5,536			334,140
LG Hausys Ltd.		1,709			189,367
LS Corp.		1,683			107,192
Neo Holdings Co., Ltd. *(b)(c)		1,746			—
Samsung C&T Corp.		13,827			713,740
Samsung Engineering Co., Ltd.		3,352			254,257
Samsung Heavy Industries Co., Ltd.		17,240			613,468
Samsung Techwin Co., Ltd.		3,201			191,475
SK Holdings Co., Ltd.		3,220			542,444

					5,422,417


Commercial & Professional Services 0.0%
S-1 Corp.		6,932			396,543


Consumer Durables & Apparel 0.0%
Coway Co., Ltd.		4,500			238,368
LG Electronics, Inc.		6,445			420,357

					658,725


Consumer Services 0.0%
Kangwon Land, Inc.		7,430			185,407


Diversified Financials 0.1%
Daewoo Securities Co., Ltd.		20,008			168,528
Korea Investment Holdings Co., Ltd.		2,650	��		93,820
Samsung Card Co., Ltd.		2,960			96,529
Samsung Securities Co., Ltd.		8,799			355,907
Woori Investment & Securities Co., Ltd.		24,960			245,092

					959,876


Energy 0.1%
GS Holdings		8,180			417,824
S-Oil Corp.		5,866			405,846
SK Innovation Co., Ltd.		5,855			738,435

					1,562,105


Food & Staples Retailing 0.0%
E-Mart Co., Ltd.		3,079			571,392


Food, Beverage & Tobacco 0.1%
CJ CheilJedang Corp.		500			114,634
KT&G Corp.		13,630			891,436
Lotte Chilsung Beverage Co., Ltd.		55			68,970
Lotte Confectionery Co., Ltd.		50			68,105
NongShim Co., Ltd.		270			58,133
ORION Corp.		464			412,147

					1,613,425


Household & Personal Products 0.1%
Amorepacific Corp.		203			164,587
AMOREPACIFIC Group		700			231,431

See financial notes 25

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
LG Household & Health Care Ltd.		1,120		495,401

				891,419


Insurance 0.2%
Dongbu Insurance Co., Ltd.		3,650		154,871
Hanwha Life Insurance Co., Ltd.		20,000		117,112
Hyundai Marine & Fire Insurance Co., Ltd.		6,000		159,993
Samsung Fire & Marine Insurance Co., Ltd.		4,570		1,029,233
Samsung Life Insurance Co., Ltd.		8,602		821,415

				2,282,624


Materials 0.4%
Cheil Industries, Inc.		3,550		282,388
Hanwha Corp.		11,020		323,636
Hyosung Corp.		7,728		494,291
Hyundai Steel Co.		6,037		399,185
Korea Zinc Co., Ltd.		1,111		319,773
Kumho Petro Chemical Co., Ltd.		1,158		96,183
LG Chem Ltd.		3,825		990,665
Lotte Chemical Corp.		1,026		158,515
POSCO ADR		40,514		2,917,818

				5,982,454


Media 0.0%
Cheil Worldwide, Inc. *		10,000		214,405


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Celltrion, Inc.		12,220		496,484
Yuhan Corp.		434		76,631

				573,115


Retailing 0.1%
Hyundai Department Store Co., Ltd.		2,016		269,696
Lotte Shopping Co., Ltd.		1,388		425,759

				695,455


Semiconductors & Semiconductor Equipment 1.1%
Samsung Electronics Co., Ltd. GDR - Reg’d		22,801		13,885,809
SK Hynix, Inc. *		56,400		1,435,341

				15,321,150


Software & Services 0.1%
Daum Communications Corp.		1,876		143,651
Naver Corp.		2,870		1,154,303
NCSoft Corp.		1,400		204,315
NHN Entertainment Corp. *		1,320		129,048
SK C&C Co. Ltd.		2,800		276,204

				1,907,521


Technology Hardware & Equipment 0.1%
LG Display Co., Ltd. ADR *		51,700		671,066
Samsung Electro-Mechanics Co., Ltd.		8,664		636,892
Samsung SDI Co., Ltd.		2,800		426,287

				1,734,245


Telecommunication Services 0.1%
KT Corp. ADR		35,673		573,265
LG Uplus Corp. *		12,570		147,776
SK Telecom Co., Ltd. ADR		51,700		1,133,781

				1,854,822


Transportation 0.0%
CJ Korea Express Co., Ltd. *		1,164		105,909
Hyundai Glovis Co., Ltd.		2,135		359,664
Hyundai Merchant Marine Co., Ltd. *		9,660		161,428

				627,001


Utilities 0.1%
Korea Electric Power Corp. ADR		51,700		709,324
Korea Gas Corp.		3,115		155,743

				865,067

				57,180,636

Singapore 1.4%


Banks 0.4%
DBS Group Holdings Ltd.		150,000		1,856,276
Oversea-Chinese Banking Corp., Ltd.		319,000		2,471,048
United Overseas Bank Ltd.		75,000		1,168,396

				5,495,720


Capital Goods 0.2%
Keppel Corp., Ltd.		75,000		593,303
Noble Group Ltd.		517,181		328,112
SembCorp Marine Ltd. (a)		50,000		163,697
Singapore Technologies Engineering Ltd.		517,000		1,603,540
Yangzijiang Shipbuilding Holdings Ltd.		517,000		382,663

				3,071,315


Consumer Services 0.1%
Genting Singapore plc		517,000		532,489


Diversified Financials 0.0%
Singapore Exchange Ltd.		32,000		182,213


Food & Staples Retailing 0.0%
Olam International Ltd. (a)		154,772		173,956


Food, Beverage & Tobacco 0.1%
Golden Agri-Resources Ltd.		1,034,000		453,526
Wilmar International Ltd.		266,000		656,276

				1,109,802


Media 0.0%
Singapore Press Holdings Ltd. (a)		170,000		523,282


Real Estate 0.3%
CapitaCommercial Trust		517,000		548,686
Capitaland Ltd.		517,000		1,235,050
CapitaMall Trust		517,000		753,178
City Developments Ltd.		21,000		163,987
Global Logistic Properties Ltd.		65,000		137,459
Keppel Land Ltd.		33,000		87,104
Keppel REIT		6,000		5,639
Wing Tai Holdings Ltd.		589,000		973,401
Yanlord Land Group Ltd.		355,000		325,318

				4,229,822


Retailing 0.0%
Jardine Cycle & Carriage Ltd.		10,000		259,800


Technology Hardware & Equipment 0.0%
Venture Corp., Ltd.		23,000		136,910


Telecommunication Services 0.2%
Singapore Telecommunications Ltd.		1,034,000		2,842,639

26 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Transportation 0.1%
ComfortDelGro Corp., Ltd.		517,000		747,104
Hutchison Port Holdings Trust		95,000		70,300
Neptune Orient Lines Ltd. *(a)		544,000		443,125
Singapore Post Ltd.		517,000		504,143

				1,764,672

				20,322,620

Spain 2.5%


Banks 1.0%
Banco Bilbao Vizcaya Argentaria S.A.		510,896		4,863,880
Banco de Sabadell S.A.		350,810		806,736
Banco Popular Espanol S.A. *		99,296		465,200
Banco Santander S.A.		1,030,094		7,253,227
Bankinter S.A.		35,673		159,225
CaixaBank		138,556		513,387

				14,061,655


Capital Goods 0.1%
ACS, Actividades de Construccion y Servicios S.A.		20,680		580,959
Ferrovial S.A.		52,217		864,110
Zardoya Otis S.A.		15,556		228,710

				1,673,779


Diversified Financials 0.0%
Corporacion Financiera Alba S.A.		4,136		214,877


Energy 0.2%
Repsol S.A.		111,672		2,584,986


Food & Staples Retailing 0.0%
Distribuidora Internacional de Alimentacion S.A.		56,870		448,433


Insurance 0.0%
Mapfre S.A.		76,516		257,179


Materials 0.0%
Acerinox S.A.		24,816		257,165


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Grifols S.A.		24,816		994,433


Retailing 0.2%
Inditex S.A.		26,367		3,481,968


Software & Services 0.1%
Amadeus IT Holding S.A.		40,326		1,299,570


Telecommunication Services 0.4%
Telefonica S.A. *		410,533		5,562,154


Transportation 0.1%
Abertis Infraestructuras S.A.		38,775		683,080


Utilities 0.3%
Acciona S.A.		2,610		133,239
Enagas S.A.		23,265		527,035
Gas Natural SDG S.A.		55,319		1,081,025
Iberdrola S.A.		492,701		2,606,499
Red Electrica Corporacion S.A.		8,327		430,909

				4,778,707

				36,297,986

Sweden 2.7%


Banks 0.7%
Nordea Bank AB		324,676		3,773,454
Skandinaviska Enskilda Banken AB, A Shares		169,059		1,733,083
Svenska Handelsbanken AB, A Shares		61,523		2,635,846
Swedbank AB, A Shares		90,475		2,044,433

				10,186,816


Capital Goods 0.8%
Alfa Laval AB		36,707		791,854
Assa Abloy AB, B Shares		30,316		1,288,789
Atlas Copco AB, A Shares		69,795		1,883,098
Atlas Copco AB, B Shares		44,979		1,102,428
Sandvik AB		96,162		1,284,207
Scania AB, B Shares		39,292		784,283
Skanska AB, B Shares		44,979		804,292
SKF AB, B Shares		48,598		1,284,838
Volvo AB, B Shares		151,998		2,186,725

				11,410,514


Commercial & Professional Services 0.0%
Securitas AB, B Shares		51,183		538,574


Consumer Durables & Apparel 0.1%
Electrolux AB, Series B		31,537		832,828
Husqvarna AB, B Shares		14,592		91,753

				924,581


Diversified Financials 0.2%
Industrivarden AB, A Shares		29,986		549,746
Investment AB Kinnevik, B Shares		14,476		451,411
Investor AB, B Shares		61,006		1,755,330

				2,756,487


Energy 0.0%
Lundin Petroleum AB *		20,705		443,223


Food, Beverage & Tobacco 0.1%
Swedish Match AB		34,234		1,193,367


Health Care Equipment & Services 0.1%
Elekta AB, B Shares		14,476		227,450
Getinge AB, B Shares		21,714		746,463

				973,913


Household & Personal Products 0.1%
Svenska Cellulosa AB, B Shares		59,455		1,450,067


Materials 0.0%
Boliden AB		19,646		286,337
Holmen AB, B Shares		5,687		163,119
SSAB AB, A Shares		11,891		82,830

				532,286


Media 0.0%
Modern Times Group AB, B Shares		4,658		210,440


Retailing 0.2%
Hennes & Mauritz AB, B Shares		83,754		3,072,256


Technology Hardware & Equipment 0.3%
Hexagon AB, B Shares		25,333		726,237
Telefonaktiebolaget LM Ericsson, B Shares		310,200		3,640,258

				4,366,495

See financial notes 27

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Telecommunication Services 0.1%
Tele2 AB		47,047		590,377
TeliaSonera AB		222,310		1,589,424

				2,179,801

				40,238,820

Switzerland 7.7%


Banks 0.0%
Banque Cantonale Vaudoise - Reg’d		517		276,410


Capital Goods 0.7%
ABB Ltd. - Reg’d *		265,221		5,660,551
Geberit AG - Reg’d *		6,204		1,506,420
Schindler Holding AG		6,204		853,682
Schindler Holding AG - Reg’d		8,789		1,186,760
Sulzer AG - Reg’d		1,551		225,730

				9,433,143


Commercial & Professional Services 0.2%
Adecco S.A. - Reg’d *		17,578		1,104,752
SGS S.A. - Reg’d		517		1,174,950

				2,279,702


Consumer Durables & Apparel 0.5%
Compagnie Financiere Richemont S.A., A Shares		52,217		4,950,647
The Swatch Group AG		3,619		2,080,420
The Swatch Group AG - Reg’d		8,789		878,523

				7,909,590


Diversified Financials 0.9%
Credit Suisse Group AG - Reg’d *		125,979		3,623,720
GAM Holding AG *		19,646		345,554
Julius Baer Group Ltd. *		30,691		1,349,561
Pargesa Holding S.A.		2,585		183,395
UBS AG - Reg’d *		412,086		7,964,168

				13,466,398


Energy 0.1%
Transocean Ltd.		35,673		1,617,222


Food, Beverage & Tobacco 1.5%
Aryzta AG *		9,823		625,790
Lindt & Spruengli AG		5		230,588
Nestle S.A. - Reg’d		331,914		21,732,464

				22,588,842


Health Care Equipment & Services 0.0%
Sonova Holding AG - Reg’d *		5,687		628,229


Insurance 0.5%
Baloise Holding AG - Reg’d		4,653		491,549
Swiss Re AG *		39,292		3,008,847
Zurich Insurance Group AG *		15,510		3,852,548

				7,352,944


Materials 0.6%
Clariant AG - Reg’d *		8,292		134,198
Givaudan S.A. - Reg’d *		1,551		2,084,302
Holcim Ltd. - Reg’d *		22,231		1,505,671
Syngenta AG - Reg’d		12,145		4,751,712

				8,475,883


Pharmaceuticals, Biotechnology & Life Sciences 2.5%
Actelion Ltd. - Reg’d *		8,272		561,137
Lonza Group AG - Reg’d *		2,995		211,680
Novartis AG - Reg’d		244,024		17,757,431
Roche Holding AG		72,380		18,017,372

				36,547,620


Real Estate 0.0%
Swiss Prime Site AG - Reg’d *		3,309		242,390


Telecommunication Services 0.1%
Swisscom AG - Reg’d		3,102		1,402,620


Transportation 0.1%
Kuehne & Nagel International AG - Reg’d		5,170		642,646

				112,863,639

United Kingdom 18.6%


Automobiles & Components 0.1%
GKN plc		170,093		863,024


Banks 2.5%
Barclays plc		1,289,915		5,653,882
HSBC Holdings plc		1,960,550		20,501,564
Lloyds Banking Group plc *		4,179,503		4,690,557
Royal Bank of Scotland Group plc *		203,758		1,051,800
Standard Chartered plc		248,209		5,532,786

				37,430,589


Capital Goods 0.8%
BAE Systems plc		348,975		2,348,799
Bunzl plc		27,918		587,766
Cobham plc		100,815		443,992
IMI plc		21,714		482,008
Invensys plc		63,687		481,652
Meggitt plc		66,176		538,966
Melrose Industries plc		41,360		188,356
Rolls-Royce Holdings plc *		182,501		3,139,297
Smiths Group plc		47,564		943,254
The Weir Group plc		18,612		626,202
Wolseley plc		32,115		1,619,526

				11,399,818


Commercial & Professional Services 0.4%
Aggreko plc		27,918		702,642
Babcock International Group plc		25,850		455,056
Capita plc		64,625		953,199
Experian plc		101,849		1,780,318
G4S plc		146,828		590,534
Intertek Group plc		12,925		640,198
Rentokil Initial plc		230,582		358,471

				5,480,418


Consumer Durables & Apparel 0.1%
Burberry Group plc		51,183		1,214,545


Consumer Services 0.4%
Carnival plc		13,769		513,739
Compass Group plc		191,290		2,532,960
InterContinental Hotels Group plc		24,988		696,931
Ladbrokes plc		146,311		417,576
TUI Travel plc		101,849		542,603
Whitbread plc		21,197		1,009,921
William Hill plc		146,547		941,232

				6,654,962

28 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Diversified Financials 0.3%
3i Group plc		111,155		616,425
Aberdeen Asset Management plc		143,006		779,123
Ashmore Group plc		35,673		184,144
Hargreaves Lansdown plc		23,782		367,332
ICAP plc		86,339		490,692
Investec plc		40,843		259,670
London Stock Exchange Group plc		10,340		249,521
Man Group plc		69,795		87,938
Schroders plc		16,027		573,443
Schroders plc, Non-Voting Shares		10,340		296,387

				3,904,675


Energy 3.1%
AMEC plc		34,122		548,419
BG Group plc		346,475		6,576,258
BP plc		1,943,733		13,416,170
Cairn Energy plc *		36,707		154,731
Essar Energy plc *		46,013		90,751
John Wood Group plc		52,217		650,639
Petrofac Ltd.		26,884		575,978
Royal Dutch Shell plc, A Shares		397,974		12,851,196
Royal Dutch Shell plc, B Shares		266,271		8,950,473
Tullow Oil plc		102,366		1,596,168

				45,410,783


Food & Staples Retailing 0.5%
J Sainsbury plc		202,664		1,205,725
Tesco plc		816,860		4,631,730
William Morrison Supermarkets plc		272,976		1,225,418

				7,062,873


Food, Beverage & Tobacco 2.3%
Associated British Foods plc		38,258		1,091,895
British American Tobacco plc		186,202		9,375,571
Coca-Cola HBC AG CDI *		20,680		570,060
Diageo plc		258,500		7,893,508
Imperial Tobacco Group plc		102,366		3,376,022
SABMiller plc		123,046		5,851,049
Tate & Lyle plc		56,870		708,177
Unilever plc		135,454		5,152,438

				34,018,720


Health Care Equipment & Services 0.1%
Smith & Nephew plc		87,890		1,019,678


Household & Personal Products 0.3%
Reckitt Benckiser Group plc		77,550		5,260,339


Insurance 0.9%
Admiral Group plc		7,238		141,187
Aviva plc		290,037		1,735,411
Legal & General Group plc		679,855		1,964,516
Old Mutual plc		533,695		1,494,287
Prudential plc		302,962		5,052,069
Resolution Ltd.		359,870		1,774,149
RSA Insurance Group plc		113,876		208,920
Standard Life plc		220,242		1,128,373

				13,498,912


Materials 1.7%
Anglo American plc		143,209		3,275,322
Antofagasta plc		26,884		355,568
BHP Billiton plc		225,412		6,548,397
CRH plc		75,482		1,599,655
Croda International plc		3,619		145,498
Fresnillo plc		21,197		427,249
Glencore Xstrata plc *		1,031,945		4,871,957
Johnson Matthey plc		20,205		887,958
Lonmin plc *		34,704		182,739
Polymetal International plc		10,882		127,176
Randgold Resources Ltd.		8,789		691,342
Rexam plc		96,284		726,687
Rio Tinto plc		125,661		5,662,437
Vedanta Resources plc		12,408		223,033

				25,725,018


Media 0.6%
British Sky Broadcasting Group plc		119,427		1,550,907
Daily Mail & General Trust plc, A Shares		22,748		277,992
Informa plc		40,326		317,204
ITV plc		472,538		1,203,176
Pearson plc		73,414		1,443,400
Reed Elsevier plc		108,053		1,322,970
WPP plc		126,148		2,331,904

				8,447,553


Pharmaceuticals, Biotechnology & Life Sciences 1.5%
AstraZeneca plc		144,799		7,118,391
GlaxoSmithKline plc		490,988		12,497,730
Shire plc		54,285		1,996,050

				21,612,171


Real Estate 0.3%
British Land Co. plc		141,658		1,222,750
Hammerson plc		109,604		819,757
Intu Properties plc		111,672		528,428
Land Securities Group plc		81,169		1,108,698
SEGRO plc		101,849		460,047

				4,139,680


Retailing 0.3%
Kingfisher plc		275,561		1,641,122
Marks & Spencer Group plc		145,794		1,063,819
Next plc		16,544		1,252,469

				3,957,410


Semiconductors & Semiconductor Equipment 0.1%
ARM Holdings plc		153,032		2,071,346


Software & Services 0.0%
The Sage Group plc		126,296		672,259


Telecommunication Services 1.4%
BT Group plc		772,398		3,886,759
Inmarsat plc		44,979		483,567
Vodafone Group plc		5,166,114		16,482,395

				20,852,721


Transportation 0.1%
easyJet plc		19,129		364,853
International Consolidated Airlines Group S.A. *		118,910		526,626

				891,479


Utilities 0.8%
Centrica plc		553,707		3,305,348
Drax Group plc		37,741		407,503
National Grid plc		340,186		3,907,286
Severn Trent plc		26,367		688,487
SSE plc		92,543		2,237,510

See financial notes 29

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
United Utilities Group plc		65,142		683,712

				11,229,846

				272,818,819

Total Common Stock
(Cost $1,359,988,894)				1,448,397,192




Other Investment Companies 0.2% of net assets

United States 0.2%


Equity Fund 0.2%
iShares MSCI EAFE ETF		45,000		2,662,650


Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund 0.00% (d)		269,275		269,275

Total Other Investment Companies
(Cost $3,002,028)				2,931,925




Preferred Stock 0.5% of net assets

Germany 0.5%


Automobiles & Components 0.4%
Porsche Automobil Holding SE		16,544		1,387,429
Volkswagen AG		17,920		4,066,605

				5,454,034


Household & Personal Products 0.1%
Henkel AG & Co. KGaA		15,510		1,499,094

Total Preferred Stock
(Cost $5,345,884)				6,953,128




Rights 0.0% of net assets

Hong Kong 0.0%


Consumer Services 0.0%
New Hotel *(b)(c)		6,025		—

Italy 0.0%


Capital Goods 0.0%
Fiat Industrial S.p.A. *(b)		89,739		44

Total Rights
(Cost $—)				44



End of Investments



Collateral Invested for Securities on Loan 0.1% of net assets


State Street Institutional U.S. Government Money Market Fund 0.00% (d)		2,005,746		2,005,746

Total Collateral Invested for Securities on Loan
(Cost $2,005,746)				2,005,746



End of Collateral Invested for Securities on Loan

At 08/31/13, the tax basis cost of the fund’s investments was $1,371,621,538 and the unrealized appreciation and depreciation were $158,249,092 and ($71,588,341), respectively, with a net unrealized appreciation of $86,660,751.


*		Non-income producing security.
(a)		All or a portion of this security is on loan. Securities on loan were valued at $1,819,613.
(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 0.0% of net assets.
(d)		The rate shown is the 7-day yield.


ADR —		American Depositary Receipt
CDI —		CHESS Depositary Interest
CVA —		Dutch Certificate
ETF —		Exchange Traded Fund
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, 2013 (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		$1,401,337,164		$—		$—		$1,401,337,164
Hong Kong¹		34,688,596		—		—		34,688,596
Real Estate		12,370,965		—		467		12,371,432
Other Investment Companies¹		2,931,925		—		—		2,931,925
Preferred Stock¹		6,953,128		—		—		6,953,128

30 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued

Quoted Prices in

Significant

Active Markets for

Significant Other

Unobservable

Identical Assets

Observable Inputs

Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Total

Rights¹

Italy¹

$—

$44

Total

$1,458,281,778

$—

$511

$1,458,282,289

Other Financial Instruments

Collateral Invested for Securities on Loan

$2,005,746

$—

$2,005,746


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	2012		(Losses)		(Losses)			Purchases		Sales			in		out		2013

Common Stock
Hong Kong		$—		$—		$467			$—		$—			$—		$—		$467
Republic of Korea		213,385		2,485		(11,417	)		—		(204,453	)		—		—		—
Rights
Italy		—		—		44			—		—			—		—		44

Total		$213,385		$2,485		($10,906	)		$—		($204,453	)		$—		$—		$511

All net realized and change in unrealized gains (losses) in the tables above are reflected on the accompanying Statement of Operations. The change in net unrealized gains (losses) for Level 3 investments held by the fund at August 31, 2013 was $511.

See financial notes 31

Schwab International Equity ETF

Statement of

Assets and Liabilities

As of August 31, 2013



Assets

Investments, at value (cost $1,368,336,806) including securities on loan of $1,819,613		$1,458,282,289
Collateral invested for securities on loan		2,005,746
Foreign currency, at value (cost $1,366,169)		1,357,298
Receivables:
Investments sold		1,379
Dividends		3,535,383
Foreign tax reclaims		940,673
Income from securities on loan	+	4,272

Total assets		1,466,127,040

Liabilities

Collateral held for securities on loan		2,005,746
Payables:
Investments bought		5,522
Investment adviser fees	+	11,016

Total liabilities		2,022,284

Net Assets

Total assets		1,466,127,040
Total liabilities	−	2,022,284

Net assets		$1,464,104,756

Net Assets by Source
Capital received from investors		1,387,702,549
Net investment income not yet distributed		25,144,598
Net realized capital losses		(38,653,927	)
Net unrealized capital gains		89,911,536

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$1,464,104,756

51,700,000

$28.32

32 See financial notes

Schwab International Equity ETF

Statement of

Operations

For the period September 1, 2012 through August 31, 2013



Investment Income

Dividends (net of foreign withholding tax of $2,862,929)		$35,178,874
Interest		502
Securities on loan	+	226,523

Total investment income		35,405,899

Expenses

Investment adviser fees		1,037,521

Total expenses	−	1,037,521

Net investment income		34,368,378

Realized and Unrealized Gains (Losses)

Net realized losses on investments (net of foreign capital gains tax of $8,158)		(13,947,994	)
Net realized gains on in-kind redemptions		3,707,114
Net realized losses on foreign currency transactions	+	(394,628	)

Net realized losses		(10,635,508	)
Net unrealized gains on investments		116,506,555
Net unrealized losses on foreign currency translations	+	(32,834	)

Net unrealized gains	+	116,473,721

Net realized and unrealized gains		105,838,213

Net increase in net assets resulting from operations		$140,206,591

See financial notes 33

Schwab International Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/12-8/31/13				9/1/11-8/31/12
Net investment income		$34,368,378			$23,365,319
Net realized losses		(10,635,508	)		(19,150,730	)
Net unrealized gains (losses)	+	116,473,721			(6,217,419	)

Net increase (decrease) in net assets resulting from operations		140,206,591			(2,002,830	)

Distributions to Shareholders

Distributions from net investment income		($26,201,560	)		($19,440,541	)

Transactions in Fund Shares

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

21,400,000

$595,025,541

6,400,000

$155,902,019

Shares redeemed

(500,000

)

(13,592,136

)

(24

)

Net transactions in fund shares

20,900,000

$581,433,405

6,399,999

$155,901,995

Shares Outstanding and Net Assets

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

30,800,000

$768,666,320

24,400,001

$634,207,696

Total increase

20,900,000

695,438,436

6,399,999

134,458,624

End of period

51,700,000

$1,464,104,756

30,800,000

$768,666,320

Net investment income not yet distributed

$25,144,598

$17,242,772

34 See financial notes

Schwab International Small-Cap Equity ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			9/1/10–			1/13/10¹–
	8/31/13			8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		24.94			27.48			23.54			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.76			0.67			0.72			0.21
Net realized and unrealized gains (losses)		3.72			(2.39	)		3.88			(1.67	)

Total from investment operations		4.48			(1.72	)		4.60			(1.46	)
Less distributions:
Distributions from net investment income		(0.81	)		(0.82	)		(0.66	)		—

Net asset value at end of period		28.61			24.94			27.48			23.54

Total return (%)		18.23			(5.91	)		19.52			(5.84	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.21	³		0.35			0.35			0.35	⁴
Gross operating expenses		0.21	³		0.35			0.35			0.35	⁴
Net investment income (loss)		2.86			2.65			2.46			2.18	⁴
Portfolio turnover rate⁵		20			25			18			7	²
Net assets, end of period ($ x 1,000)		280,422			159,610			162,139			58,848

¹ Commencement of operations.

² Not annualized.

³ Effective September 20, 2012, the annual operating expense ratio was reduced. The ratio presented for the period ended 8/31/13 is a blended ratio. Please see financial note 4 for additional information.

⁴ Annualized.

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

See financial notes 35

Schwab International Small-Cap Equity ETF

Portfolio Holdings as of August 31, 2013

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


				Cost		Value
Holdings by Category				($)		($)

	98	.9%	Common Stock		257,396,353		277,444,377
	0	.6%	Other Investment Companies		1,381,912		1,549,053
	0	.2%	Preferred Stock		578,865		638,580
	0	.0%	Rights		5,815		27,836
	0	.0%	Warrants		—		143


	99	.7%	Total Investments		259,362,945		279,659,989
	6	.0%	Collateral Invested for Securities on Loan		16,962,784		16,962,784
	(5	.7)%	Other Assets and Liabilities, Net				(16,201,055	)


	100	.0%	Net Assets				280,421,718


	Number		Value
Security	of Shares		($)

Common Stock 98.9% of net assets

Australia 5.5%


Capital Goods 0.4%
Ausdrill Ltd.		49,283		64,524
Boart Longyear Ltd. (c)		102,487		41,989
Bradken Ltd. (c)		37,546		190,610
Cardno Ltd. (c)		21,176		120,706
Forge Group Ltd.		2,977		14,000
Monadelphous Group Ltd. (c)		19,054		315,141
NRW Holdings Ltd. (c)		78,990		96,383
Seven Group Holdings Ltd. (c)		21,176		142,019
UGL Ltd. (c)		29,341		193,642

				1,179,014


Commercial & Professional Services 0.5%
Cabcharge Australia Ltd. (c)		44,821		165,268
Mineral Resources Ltd.		22,540		222,032
SAI Global Ltd. (c)		42,352		160,690
Seek Ltd.		59,303		565,155
Skilled Group Ltd.		12,081		33,571
Transfield Services Ltd. (c)		120,411		122,794
Transpacific Industries Group Ltd. *		79,410		68,605

				1,338,115


Consumer Durables & Apparel 0.1%
G.U.D. Holdings Ltd. (c)		31,459		167,553


Consumer Services 0.3%
Ainsworth Game Technology Ltd.		24,850		89,859
Ardent Leisure Group		52,940		86,286
Invocare Ltd.		38,653		378,689
Navitas Ltd.		56,491		312,448

				867,282


Diversified Financials 0.1%
FlexiGroup Ltd.		52,940		207,936


Energy 0.5%
Aurora Oil & Gas Ltd. *		105,880		311,197
AWE Ltd. *		138,847		161,382
Beach Energy Ltd.		158,820		197,327
Buru Energy Ltd. *(c)		24,247		36,928
Drillsearch Energy Ltd. *(c)		65,016		83,096
Horizon Oil Ltd. *(c)		168,266		48,706
Karoon Gas Australia Ltd. *		60,881		290,639
Linc Energy Ltd. *(c)		46,920		62,684
Roc Oil Co., Ltd. *		53,037		25,508
Senex Energy Ltd. *		146,579		97,260

				1,314,727


Food, Beverage & Tobacco 0.2%
GrainCorp Ltd.		57,890		641,403


Health Care Equipment & Services 0.3%
Australian Pharmaceutical Industries Ltd.		68,245		29,479
Primary Health Care Ltd.		130,087		596,689
Sigma Pharmaceuticals Ltd.		265,236		151,189

				777,357


Materials 0.6%
Beadell Resources Ltd. *(c)		80,736		65,436
CuDeco Ltd. *(c)		25,094		32,743
Evolution Mining Ltd. *		84,704		70,161
Imdex Ltd.		60,802		37,366
Independence Group NL		52,460		174,279
Kingsgate Consolidated Ltd. (c)		39,538		78,528
Medusa Mining Ltd. (c)		23,442		55,119
Mineral Deposits Ltd. *		8,781		23,541
Northern Star Resources Ltd.		47,802		41,510
PanAust Ltd.		133,516		259,237
Papillon Resources Ltd. *(c)		40,156		40,414
Perseus Mining Ltd. *(c)		140,962		97,927
Regis Resources Ltd. *		87,038		334,113
Resolute Mining Ltd.		158,295		134,641
Sandfire Resources NL *		25,115		139,804
Silver Lake Resources Ltd. *(c)		80,630		70,377
Sirius Resources NL *(c)		31,068		76,648
Troy Resources Ltd. (c)		15,882		25,037
Western Areas Ltd. (c)		26,470		69,312

				1,826,193


Media 0.1%
REA Group Ltd. (c)		4,905		158,057
Southern Cross Media Group Ltd.		52,940		79,450

				237,507


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Acrux Ltd.		31,764		93,642
Mesoblast Ltd. *(c)		42,285		206,383
Sirtex Medical Ltd.		7,359		85,402
Starpharma Holdings Ltd. *(c)		49,000		43,206

				428,633


Real Estate 0.6%
Abacus Property Group (c)		115,881		232,221
BWP Trust (c)		125,730		257,557

36 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Challenger Diversified Property Group		42,378		96,625
Charter Hall Group (c)		79,122		245,236
Charter Hall Retail REIT		98,149		321,692
FKP Property Group		76,986		85,709
Investa Office Fund		151,264		396,086

				1,635,126


Retailing 0.8%
ARB Corp., Ltd.		9,800		107,184
Automotive Holdings Group Ltd.		90,357		316,272
Breville Group Ltd. (c)		7,959		62,239
Cash Converters International Ltd. (c)		24,893		26,162
David Jones Ltd. (c)		118,264		297,036
JB Hi-Fi Ltd. (c)		18,342		308,102
Myer Holdings Ltd. (c)		135,659		332,268
Pacific Brands Ltd.		300,078		203,121
Premier Investments Ltd.		21,176		153,146
Reject Shop Ltd. (c)		5,294		79,827
Super Retail Group Ltd.		26,470		288,092
Wotif.com Holdings Ltd. (c)		31,074		127,310

				2,300,759


Semiconductors & Semiconductor Equipment 0.0%
Silex Systems Ltd. *		25,724		54,986


Software & Services 0.3%
carsales.com Ltd.		42,171		418,414
Iress Ltd. (a)		43,142		339,672
SMS Management & Technology Ltd.		19,600		80,126
UXC Ltd.		56,668		55,518

				893,730


Telecommunication Services 0.2%
iiNET Ltd.		4,964		26,085
M2 Telecommunications Group Ltd. (c)		15,344		84,730
TPG Telecom Ltd.		103,556		332,958

				443,773


Transportation 0.1%
Mermaid Marine Australia Ltd.		15,805		54,195
Qube Holdings Ltd. (c)		52,940		85,108
Virgin Australia Holdings Ltd. *		505,235		175,495
Virgin Australia International Holdings Ltd. (a)(b)		424,000		—

				314,798


Utilities 0.3%
DUET Group		205,800		381,255
Energy World Corp. Ltd. *		243,535		95,438
Infigen Energy *		221,193		54,176
Spark Infrastructure Group		243,535		351,385

				882,254

				15,511,146

Austria 0.8%


Capital Goods 0.2%
Wienerberger AG		29,432		424,959


Energy 0.1%
Schoeller-Bleckmann Oilfield Equipment AG		2,684		283,130


Materials 0.1%
Mayr Melnhof Karton AG		1,101		117,957
RHI AG		3,374		106,152

				224,109


Real Estate 0.3%
Atrium European Real Estate Ltd.		45,570		263,188
CA Immobilien Anlagen AG *		21,176		271,436
Conwert Immobilien Invest SE *		21,176		227,570
S IMMO AG *		10,588		64,781

				826,975


Technology Hardware & Equipment 0.0%
Kapsch TrafficCom AG		1,470		59,604


Transportation 0.1%
Oesterreichische Post AG		7,560		314,011


Utilities 0.0%
EVN AG		5,627		70,933

				2,203,721

Belgium 1.3%


Consumer Durables & Apparel 0.0%
Van de Velde N.V.		1,376		66,171


Diversified Financials 0.4%
Ackermans & van Haaren N.V.		6,087		544,586
KBC Ancora *		2,820		64,180
RHJ International *		34,842		171,366
Sofina S.A.		4,267		399,873

				1,180,005


Health Care Equipment & Services 0.0%
Agfa Gevaert N.V. *		19,284		38,142


Materials 0.2%
NV Bekaert S.A.		5,412		192,180
Nyrstar *(c)		43,878		204,237
Tessenderlo Chemie N.V.		7,436		178,943

				575,360


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
ThromboGenics N.V. *(c)		5,880		177,746


Real Estate 0.2%
Befimmo S.A.		3,834		249,742
Cofinimmo		2,752		304,637

				554,379


Retailing 0.1%
D’Ieteren S.A. N.V.		7,405		341,846


Semiconductors & Semiconductor Equipment 0.0%
Melexis N.V.		5,294		128,863


Technology Hardware & Equipment 0.2%
Barco N.V.		1,796		128,167
EVS Broadcast Equipment S.A.		4,457		301,784

				429,951


Telecommunication Services 0.0%
Mobistar S.A.		1,534		22,817

See financial notes 37

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Utilities 0.1%
Elia System Operator S.A. N.V.		4,116		171,450

				3,686,730

Canada 17.0%


Automobiles & Components 0.1%
Linamar Corp.		11,679		363,135
Martinrea International, Inc.		4,687		52,606

				415,741


Banks 0.5%
Canadian Western Bank		11,679		330,586
Genworth MI Canada, Inc.		11,679		311,654
Home Capital Group, Inc.		10,588		642,667
Laurentian Bank of Canada		3,557		149,476

				1,434,383


Capital Goods 1.0%
Aecon Group, Inc.		11,679		143,151
ATS Automation Tooling Systems, Inc. *		23,358		280,987
CAE, Inc.		52,940		565,081
Genivar, Inc.		4,805		110,958
MacDonald, Dettwiler & Associates Ltd.		7,893		608,679
Russel Metals, Inc. (c)		11,679		291,394
Toromont Industries Ltd.		21,176		452,467
Westport Innovations, Inc. *(c)		10,588		290,068

				2,742,785


Commercial & Professional Services 0.6%
Progressive Waste Solutions Ltd.		22,807		551,528
Ritchie Bros. Auctioneers, Inc. (c)		23,358		430,448
Stantec, Inc.		11,679		534,960
Transcontinental, Inc., Class A		10,588		137,406

				1,654,342


Consumer Durables & Apparel 0.4%
Dorel Industries, Inc., Class B		7,880		268,916
Gildan Activewear, Inc.		21,176		929,022

				1,197,938


Diversified Financials 0.6%
AGF Management Ltd., Class B		11,679		141,711
Canaccord Financial, Inc. (c)		11,254		66,890
Dundee Corp., Class A *		11,679		219,431
GMP Capital, Inc.		5,726		31,103
Onex Corp.		22,559		1,071,173
TMX Group Ltd.		5,472		249,298

				1,779,606


Energy 5.2%
Advantage Oil & Gas Ltd. *		35,054		127,270
AltaGas Ltd.		21,176		721,257
Athabasca Oil Corp. *		78,792		563,173
Bankers Petroleum Ltd. *		55,673		187,353
Baytex Energy Corp. (c)		21,176		836,080
Birchcliff Energy Ltd. *		21,176		142,525
BlackPearl Resources, Inc. *		63,528		124,057
Bonavista Energy Corp. (c)		31,764		391,743
Bonterra Energy Corp. (c)		3,756		183,510
Calfrac Well Services Ltd.		10,588		329,614
Coastal Energy Co. *		9,456		148,442
Crew Energy, Inc. *		21,410		121,977
Denison Mines Corp. *(c)		105,880		120,444
Enerflex Ltd.		11,679		156,436
Enerplus Corp. (c)		31,764		524,833
Ensign Energy Services, Inc.		31,764		529,350
Gibson Energy, Inc.		21,176		453,470
Kelt Exploration Ltd. *		10,371		78,060
Keyera Corp.		14,017		765,759
Legacy Oil & Gas, Inc. *		22,807		132,531
Lightstream Resources Ltd. (c)		38,881		266,480
Mullen Group Ltd.		11,679		279,548
Niko Resources Ltd. *		14,573		67,691
Nuvista Energy Ltd. *		23,358		164,296
Paramount Resources Ltd., A Shares *		10,588		335,837
Parkland Fuel Corp.		11,254		185,629
Pason Systems, Inc.		11,679		237,256
Pengrowth Energy Corp. (c)		98,000		540,677
Petrominerales Ltd.		17,687		108,144
Peyto Exploration & Development Corp.		21,176		577,126
Precision Drilling Corp.		52,940		520,417
Savanna Energy Services Corp.		23,358		171,161
Secure Energy Services, Inc.		11,270		143,159
ShawCor Ltd.		11,679		463,108
Tourmaline Oil Corp. *		31,764		1,225,514
Trican Well Service Ltd.		31,764		445,943
Trilogy Energy Corp.		12,770		332,172
Trinidad Drilling Ltd.		31,764		273,407
Veresen, Inc. (c)		31,764		361,632
Vermilion Energy, Inc. (c)		17,858		957,990
Whitecap Resources, Inc.		16,856		177,364

				14,472,435


Food & Staples Retailing 0.4%
Empire Co., Ltd., A Shares		8,478		651,542
The Jean Coutu Group, Inc., A Shares		23,358		400,998
The North West Co., Inc.		2,450		53,766

				1,106,306


Food, Beverage & Tobacco 0.2%
Cott Corp.		23,358		186,881
Maple Leaf Foods, Inc.		23,358		304,458

				491,339


Health Care Equipment & Services 0.1%
Extendicare, Inc. (c)		23,358		145,254


Insurance 0.2%
Industrial Alliance Insurance & Financial Services, Inc.		17,640		691,119


Materials 3.5%
Alacer Gold Corp.		52,940		162,599
Alamos Gold, Inc.		24,182		394,055
Argonaut Gold, Inc. *		16,548		114,200
AuRico Gold, Inc.		58,183		248,749
B2Gold Corp. *		81,521		216,380
Banro Corp. *(c)		29,955		25,840
Canexus Corp.		17,118		122,839
Canfor Corp. *		23,358		460,340
Capstone Mining Corp. *		59,618		124,334
CCL Industries, Inc., Class B		10,214		697,910
Centerra Gold, Inc.		31,764		200,238

38 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
China Gold International Resources Corp. Ltd. *		48,585		180,541
Continental Gold Ltd. *		10,022		44,272
Detour Gold Corp. *		25,554		281,969
Dominion Diamond Corp. *		11,679		145,918
Dundee Precious Metals, Inc. *		22,807		142,909
Endeavour Mining Corp. *		44,372		34,491
Endeavour Silver Corp. *		10,588		52,393
First Majestic Silver Corp. *		21,176		299,503
Gabriel Resources Ltd. *		45,786		73,785
Golden Star Resources Ltd. *(c)		36,148		19,875
HudBay Minerals, Inc.		36,568		239,881
Imperial Metals Corp. *		22,807		264,846
Katanga Mining Ltd. *		49,000		25,547
Kirkland Lake Gold, Inc. *(c)		14,036		60,008
Lundin Mining Corp. *		95,292		392,044
Major Drilling Group International, Inc.		22,267		142,691
Methanex Corp.		23,358		1,083,870
Nevsun Resources Ltd.		31,764		100,570
New Gold, Inc. *		79,744		536,717
Norbord, Inc. (c)		788		19,773
NovaGold Resources, Inc. *		52,940		144,031
OceanaGold Corp. *		44,534		78,945
Osisko Mining Corp. *		79,154		392,431
Pan American Silver Corp.		31,980		389,556
Pretium Resources, Inc. *		10,588		88,827
Rubicon Minerals Corp. *		52,940		81,801
Seabridge Gold, Inc. *(c)		10,588		152,662
SEMAFO, Inc.		37,984		79,576
Sherritt International Corp.		48,531		169,300
Silver Standard Resources, Inc. *		11,679		98,312
Silvercorp Metals, Inc.		34,230		125,900
Tahoe Resources, Inc. *		21,176		377,390
Taseko Mines Ltd. *(c)		35,054		71,444
Thompson Creek Metals Co., Inc. *(c)		24,894		91,326
Torex Gold Resources, Inc. *		111,067		168,459
West Fraser Timber Co., Ltd.		6,179		488,509

				9,907,556


Media 0.9%
Aimia, Inc.		42,352		643,169
Cineplex, Inc.		10,588		392,646
Cogeco Cable, Inc.		8,557		392,280
Corus Entertainment, Inc.		10,588		253,434
Imax Corp. *		11,128		303,702
Quebecor, Inc., Class B		22,256		476,176
Torstar Corp.		11,128		63,399

				2,524,806


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Nordion, Inc. *		23,358		183,339
Paladin Labs, Inc. *		333		18,956

				202,295


Real Estate 1.2%
Allied Properties Real Estate Investment Trust		2,940		87,121
Artis Real Estate Investment Trust		12,164		156,244
Boardwalk Real Estate Investment Trust		3,111		165,533
Calloway Real Estate Investment Trust		15,190		350,627
Canadian Apartment Properties Real Estate Investment Trust		11,679		228,067
Canadian Real Estate Investment Trust		8,294		320,863
Chartwell Retirement Residences		28,490		260,080
Cominar Real Estate Investment Trust		17,569		310,609
Dream Unlimited Corp. *(c)		11,679		125,769
Dundee Real Estate Investment Trust		13,504		373,795
First Capital Realty, Inc.		17,842		284,315
FirstService Corp.		3,418		119,204
H&R Real Estate Investment Trust		31,312		608,787
InnVest Real Estate Investment Trust		9,800		37,439
Morguard Real Estate Investment Trust		6,607		98,770

				3,527,223


Retailing 0.4%
Dollarama, Inc.		11,395		803,126
RONA, Inc.		21,176		215,795

				1,018,921


Software & Services 0.4%
Constellation Software, Inc.		1,764		288,872
Davis & Henderson Corp. (c)		6,748		166,253
Open Text Corp. (c)		10,588		726,677

				1,181,802


Technology Hardware & Equipment 0.1%
Celestica, Inc. *		24,182		256,743
Wi-Lan, Inc.		11,032		35,975

				292,718


Telecommunication Services 0.1%
Manitoba Telecom Services, Inc.		10,588		338,246


Transportation 0.2%
TransForce, Inc.		11,679		230,170
Westshore Terminals Investment Corp.		8,557		238,078

				468,248


Utilities 0.8%
Algonquin Power & Utilities Corp.		28,157		179,902
ATCO Ltd., Class I		20,319		834,217
Atlantic Power Corp.		13,063		52,009
Capital Power Corp. (c)		10,588		207,364
Emera, Inc.		13,364		377,901
Innergex Renewable Energy, Inc.		10,588		86,519
Just Energy Group, Inc. (c)		10,588		64,136
Northland Power, Inc.		10,588		143,930
Superior Plus Corp.		21,176		220,613

				2,166,591

				47,759,654

Denmark 1.7%


Banks 0.4%
Jyske Bank A/S *		13,973		643,405

See financial notes 39

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Sydbank A/S *		14,210		342,104

				985,509


Capital Goods 0.3%
NKT Holding A/S		4,823		216,966
Vestas Wind Systems A/S *		38,134		711,809

				928,775


Consumer Durables & Apparel 0.2%
Bang & Olufsen A/S *		5,294		48,660
Pandora A/S		11,441		410,937

				459,597


Food, Beverage & Tobacco 0.0%
East Asiatic Co., Ltd. A/S *		1,031		16,675


Health Care Equipment & Services 0.3%
GN Store Nord A/S		39,705		815,527


Insurance 0.2%
Topdanmark A/S *		23,584		595,295


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Alk-Abello A/S		2,806		234,852
Bavarian Nordic A/S *		2,949		33,361
Genmab A/S *		7,887		232,678

				500,891


Software & Services 0.1%
SimCorp A/S		11,020		344,780

				4,647,049

Finland 2.3%


Capital Goods 0.7%
Cargotec Oyj, B Shares		8,781		296,413
Cramo Oyj		2,977		46,713
Konecranes Oyj		9,968		309,537
Outotec Oyj (c)		33,875		438,189
Ramirent Oyj		20,957		224,940
Uponor Oyj		10,588		187,501
YIT Oyj		23,194		318,069

				1,821,362


Commercial & Professional Services 0.1%
Caverion Corp. *		23,194		150,471
Lassila & Tikanoja Oyj *		10,590		203,176

				353,647


Consumer Durables & Apparel 0.3%
Amer Sports Oyj		33,761		666,869


Diversified Financials 0.2%
Pohjola Bank plc, A Shares		34,344		556,565


Materials 0.4%
Huhtamaki Oyj		24,464		477,422
Kemira Oyj		21,176		332,559
Metsa Board Oyj		64,941		202,946
Outokumpu Oyj *(c)		173,294		104,290
Rautaruukki Oyj		8,375		58,971

				1,176,188


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Orion Oyj, Class B		13,292		307,245


Real Estate 0.2%
Citycon Oyj		47,159		146,754
Sponda Oyj		49,658		246,201

				392,955


Retailing 0.0%
Stockmann Oyj Abp, B Shares		5,580		96,829


Software & Services 0.1%
Tieto Oyj		17,302		343,813


Telecommunication Services 0.2%
Elisa Oyj		29,400		616,781


Transportation 0.0%
Finnair Oyj		21,176		83,768

				6,416,022

France 3.0%


Automobiles & Components 0.1%
Faurecia *		7,371		187,050
Plastic Omnium S.A.		2,940		193,718

				380,768


Capital Goods 0.2%
Mersen		3,697		96,669
Nexans S.A.		6,472		365,553
Saft Groupe S.A.		5,432		131,649

				593,871


Commercial & Professional Services 0.2%
Derichebourg S.A. *		9,940		30,408
Teleperformance		10,643		478,625

				509,033


Consumer Durables & Apparel 0.1%
Nexity S.A.		6,698		246,059


Energy 0.3%
Bourbon S.A.		13,623		355,584
Etablissements Maurel et Prom		21,823		358,978
Maurel & Prom Nigeria		26,594		122,734

				837,296


Food & Staples Retailing 0.1%
Rallye S.A.		6,348		222,780


Food, Beverage & Tobacco 0.0%
Vilmorin & Cie S.A.		564		67,059


Health Care Equipment & Services 0.2%
Medica S.A.		14,948		323,842
Orpea		7,405		339,893

				663,735


Materials 0.1%
S.A. des Ciments Vicat		3,382		219,854


Media 0.6%
Havas S.A.		76,224		551,995
Ipsos		6,924		265,317
Metropole Television S.A.		19,543		373,141
Societe d’Edition de Canal +		28,596		199,846
Solocal Group *(c)		14,196		31,635
Technicolor S.A. *		37,203		176,601

				1,598,535


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Eurofins Scientific		686		158,569

40 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Virbac S.A.		1,537		280,899

				439,468


Real Estate 0.1%
Mercialys S.A.		10,588		203,835


Semiconductors & Semiconductor Equipment 0.0%
Silicon-On-Insulator Technologies *(c)		7,477		17,352


Software & Services 0.4%
Alten S.A.		8,190		328,948
Altran Technologies S.A. *		37,807		275,185
GameLoft SE *		9,800		83,349
Groupe Steria SCA		6,811		102,203
UbiSoft Entertainment��*		28,621		431,364

				1,221,049


Technology Hardware & Equipment 0.3%
Ingenico		5,748		400,188
Neopost S.A.		5,935		414,772

				814,960


Utilities 0.2%
Rubis		7,433		448,305
Sechilienne-Sidec		1,590		31,155

				479,460

				8,515,114

Germany 5.3%


Automobiles & Components 0.2%
ElringKlinger AG		6,373		231,137
Leoni AG		7,765		425,376

				656,513


Banks 0.1%
Aareal Bank AG *		10,194		275,624


Capital Goods 1.2%
Bauer AG		893		20,783
BayWa AG		3,172		151,828
Deutz AG *		33,393		299,902
Duerr AG		1,050		70,334
Gildemeister AG		15,697		348,556
Heidelberger Druckmaschinen AG *		23,497		63,206
Kloeckner & Co. SE *		17,723		227,853
Krones AG		4,485		379,082
KUKA AG		7,578		317,857
Nordex SE *		8,591		99,880
NORMA Group AG		5,880		236,013
Pfeiffer Vacuum Technology AG		2,580		299,749
Rational AG		992		294,246
Rheinmetall AG		2,806		137,288
SGL Carbon SE (c)		7,941		250,728
Vossloh AG		1,901		156,290

				3,353,595


Consumer Durables & Apparel 0.1%
Gerry Weber International AG		6,884		308,581


Food, Beverage & Tobacco 0.0%
KWS Saat AG		315		101,015


Health Care Equipment & Services 0.2%
Carl Zeiss Meditec AG		2,105		63,993
Draegerwerk AG & Co. KGaA		236		23,728
Rhoen Klinikum AG		13,230		306,597

				394,318


Materials 0.6%
Aurubis AG		10,163		585,018
Symrise AG		22,762		992,862

				1,577,880


Media 0.7%
CTS Eventim AG		2,105		88,544
ProSiebenSat.1 Media AG - Reg’d		21,098		892,321
Sky Deutschland AG *		109,593		916,189

				1,897,054


Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Gerresheimer AG		4,051		243,846
MorphoSys AG *		6,814		491,297
Stada Arzneimittel AG		14,428		696,306

				1,431,449


Real Estate 0.8%
Alstria Office REIT-AG *		14,224		167,677
Deutsche Euroshop AG		9,968		406,275
Deutsche Wohnen AG		26,470		463,167
DIC Asset AG		10,588		103,454
GAGFAH S.A. *		20,957		255,558
GSW Immobilien AG		9,800		425,983
LEG Immobilien AG *		4,165		223,468
Patrizia Immobilien AG *		5,821		51,557
TAG Immobilien AG		9,800		114,311

				2,211,450


Retailing 0.0%
Delticom AG		350		17,837


Semiconductors & Semiconductor Equipment 0.2%
Aixtron SE *		21,086		329,060
Dialog Semiconductor plc *		14,243		258,612
SMA Solar Technology AG		1,257		40,211

				627,883


Software & Services 0.3%
Bechtle AG		2,636		127,320
Wirecard AG		21,303		665,034

				792,354


Technology Hardware & Equipment 0.2%
Jenoptik AG		8,135		110,915
Wincor Nixdorf AG		6,727		420,804

				531,719


Telecommunication Services 0.2%
Freenet AG *		27,081		637,227
QSC AG		5,392		25,155

				662,382

				14,839,654

Greece 0.9%


Banks 0.3%
Alpha Bank AE *		343,000		229,758
National Bank of Greece S.A. *		67,732		273,293
Piraeus Bank S.A. *		173,807		254,392

				757,443

See financial notes 41

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Capital Goods 0.1%
Ellaktor S.A. *		16,000		42,617
Frigoglass S.A. *		5,400		33,466
Metka S.A.		3,200		42,027

				118,110


Consumer Services 0.1%
Intralot S.A. Integrated Lottery Systems & Services		19,200		38,229
OPAP S.A.		33,750		333,771

				372,000


Diversified Financials 0.0%
Hellenic Exchanges S.A. Holding Clearing Settlement and Registry		9,401		69,047
Marfin Investment Group Holdings S.A. *		75,016		27,795

				96,842


Energy 0.0%
Motor Oil (Hellas) Corinth Refineries S.A.		11,800		109,850


Materials 0.2%
Mytilineos Holdings S.A. *		14,000		73,841
Titan Cement Co. S.A. *		11,550		223,574
Viohalco Hellenic Copper and Aluminum Industry S.A. *		23,738		124,578

				421,993


Real Estate 0.0%
Eurobank Properties Real Estate Investment Co. *		9,800		84,253


Retailing 0.1%
Folli Follie Group *		4,702		105,401
JUMBO S.A. *		15,000		158,034

				263,435


Utilities 0.1%
Athens Water Supply & Sewage Co. S.A.		6,118		48,565
Public Power Corp. S.A.		18,352		172,780

				221,345

				2,445,271

Hong Kong 1.7%


Automobiles & Components 0.1%
Minth Group Ltd.		226,000		406,861


Capital Goods 0.0%
Singamas Container Holdings Ltd.		420,000		95,327


Consumer Durables & Apparel 0.0%
Stella International Holdings Ltd.		52,500		128,637


Consumer Services 0.1%
NagaCorp Ltd.		107,343		89,425
Regal Hotels International Holdings Ltd.		64,000		32,849
REXLot Holdings Ltd.		2,625,000		182,799

				305,073


Diversified Financials 0.0%
Value Partners Group Ltd.		210,000		119,700


Energy 0.2%
Anton Oilfield Services Group (c)		196,041		125,142
Honghua Group Ltd. (c)		393,677		115,751
Newocean Energy Holdings Ltd. (c)		140,626		90,675
Sino Oil & Gas Holdings Ltd. *(c)		6,880,000		173,899

				505,467


Materials 0.1%
CST Mining Group Ltd. *		1,320,000		13,277
G-Resources Group Ltd. *(c)		5,940,000		214,485
Yingde Gases		157,500		141,162

				368,924


Real Estate 0.2%
K Wah International Holdings Ltd.		210,000		98,847
Lai Sun Development Co., Ltd. *		2,325,000		66,862
Sunlight Real Estate Investment Trust		210,000		81,515
Yuexiu Real Estate Investment Trust		420,000		210,693

				457,917


Retailing 0.5%
Chow Sang Sang Holdings International Ltd.		26,000		71,585
Emperor Watch & Jewellery Ltd.		1,240,000		92,747
Giordano International Ltd. (c)		210,000		201,757
Luk Fook Holdings International Ltd. (c)		80,000		273,393
New World Department Store China Ltd.		210,000		110,763
SA SA International Holdings Ltd.		392,000		420,087
Trinity Ltd. (c)		244,000		85,902

				1,256,234


Technology Hardware & Equipment 0.1%
Ju Teng International Holdings Ltd. (c)		210,000		117,533
TCL Communication Technology Holdings Ltd.		98,000		54,343
Truly International Holdings (c)		392,000		242,144

				414,020


Telecommunication Services 0.1%
SmarTone Telecommunications Holding Ltd. (c)		105,000		151,927


Transportation 0.2%
Pacific Basin Shipping Ltd.		689,000		431,824


Utilities 0.1%
Towngas China Co., Ltd. (c)		218,000		205,225

				4,847,136

Ireland 1.1%


Capital Goods 0.4%
Grafton Group plc		70,408		594,176
Kingspan Group plc		35,997		555,823

				1,149,999


Consumer Services 0.2%
Paddy Power plc		5,880		471,792


Food, Beverage & Tobacco 0.3%
C&C Group plc		84,704		469,101

42 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Glanbia plc		20,556		273,762

				742,863


Materials 0.2%
Smurfit Kappa Group plc		31,764		643,757


Transportation 0.0%
Aer Lingus Group plc		42,352		94,379

				3,102,790

Israel 0.4%


Capital Goods 0.0%
Clal Industries Ltd.		8,768		37,304


Food & Staples Retailing 0.1%
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd.		2,450		123,878


Health Care Equipment & Services 0.0%
Given Imaging Ltd. *		6,344		116,399


Insurance 0.1%
Menorah Mivtachim Holdings Ltd. *		9,800		108,233
Phoenix Holdings Ltd.		5,075		17,341

				125,574


Materials 0.1%
Frutarom Industries Ltd.		9,800		161,035


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Kamada Ltd. *		3,506		45,835


Real Estate 0.0%
Africa Israel Investments Ltd. *		26,560		46,991
Jerusalem Economy Ltd.		6,314		51,824

				98,815


Semiconductors & Semiconductor Equipment 0.0%
Nova Measuring Instruments Ltd. *		10,588		96,066


Software & Services 0.1%
Allot Communications Ltd. *		5,294		67,322
Babylon Ltd.		8,841		66,846

				134,168


Technology Hardware & Equipment 0.0%
Gilat Satellite Networks Ltd. *		7,517		36,304
Ituran Location and Control Ltd.		4,233		78,451

				114,755

				1,053,829

Italy 2.7%


Automobiles & Components 0.0%
Piaggio & C S.p.A.		37,058		95,286


Banks 0.5%
Banca Carige S.p.A. *(c)		35,550		23,415
Banca Piccolo Credito Valtellinese Scarl *		61,923		78,263
Banca Popolare dell’Emilia Romagna Scrl *		57,134		405,313
Banca Popolare di Milano Scarl *(c)		735,899		369,124
Banca Popolare di Sondrio Scrl		55,587		305,355
Credito Emiliano S.p.A.		24,192		135,509

				1,316,979


Capital Goods 0.2%
Danieli & C Officine Meccaniche S.p.A.		15,810		273,722
Interpump Group S.p.A.		14,700		150,997
Trevi Finanziaria Industriale S.p.A.		2,128		17,341

				442,060


Consumer Durables & Apparel 0.4%
Brunello Cucinelli S.p.A.		2,940		86,838
De’Longhi S.p.A.		5,294		78,463
Safilo Group S.p.A. *		2,583		45,299
Salvatore Ferragamo Italia S.p.A.		9,800		321,765
Tod’s S.p.A.		3,240		578,037

				1,110,402


Diversified Financials 0.3%
Azimut Holding S.p.A.		26,168		560,708
Banca Generali S.p.A.		15,697		354,144

				914,852


Energy 0.1%
Cam Finanziaria S.p.A. *		41,893		44,109
ERG S.p.A.		22,494		218,895
Saras S.p.A. *		58,800		70,944

				333,948


Health Care Equipment & Services 0.3%
DiaSorin S.p.A.		7,405		298,786
Sorin S.p.A. *		150,039		401,618

				700,404


Insurance 0.3%
Fondiaria-Sai S.p.A. *		151,363		285,210
Milano Assicurazioni S.p.A. *		134,243		84,807
Societa Cattolica di Assicurazioni Scrl		8,967		200,888
Unipol Gruppo Finanziario S.p.A.		44,661		160,769

				731,674


Materials 0.0%
Italcementi S.p.A.		4,273		27,496
Italcementi S.p.A. RSP		9,952		32,413
Italmobiliare S.p.A. *		3,067		44,849

				104,758


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Recordati S.p.A.		24,927		280,370


Real Estate 0.0%
Beni Stabili S.p.A.		169,565		103,969


Retailing 0.1%
Yoox S.p.A. *		6,345		196,195


Transportation 0.1%
Ansaldo STS S.p.A.		43,058		371,885


Utilities 0.3%
A2A S.p.A.		211,259		183,296
ACEA S.p.A.		21,081		194,582
Hera S.p.A.		147,334		289,858
IREN S.p.A.		97,069		111,996

				779,732

				7,482,514

See financial notes 43

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Japan 13.1%


Automobiles & Components 0.8%
Akebono Brake Industry Co., Ltd. (c)		21,000		90,537
Daido Metal Co., Ltd.		7,000		57,076
Keihin Corp.		10,500		152,607
Mitsuba Corp.		3,000		48,311
Musashi Seimitsu Industry Co., Ltd. (c)		10,500		257,377
Nifco, Inc. (c)		10,500		250,206
Nissin Kogyo Co., Ltd.		14,200		252,261
Press Kogyo Co., Ltd.		28,000		110,156
Showa Corp.		10,500		131,738
Toyo Tire & Rubber Co., Ltd.		20,000		108,648
TPR Co., Ltd.		10,500		179,789
TS Tech Co., Ltd.		11,400		384,589
Unipres Corp.		8,000		174,326

				2,197,621


Banks 0.6%
Bank of the Ryukyus Ltd. (c)		10,500		131,524
FIDEA Holdings Co., Ltd.		52,500		100,061
Kiyo Holdings, Inc.		315,000		414,157
The Bank of Nagoya Ltd.		27,000		92,738
The Bank of Okinawa Ltd. (c)		3,200		125,241
The Chiba Kogyo Bank Ltd. *		9,800		66,222
The Fukui Bank Ltd.		113,000		237,252
The Miyazaki Bank Ltd.		31,000		90,047
The Oita Bank Ltd.		48,000		146,767
The Toho Bank Ltd.		23,000		67,278
The Tokyo Tomin Bank Ltd.		10,500		115,793
The Tsukuba Bank Ltd.		26,400		87,449
The Yachiyo Bank Ltd.		2,200		64,555
TOMONY Holdings, Inc.		21,000		74,056

				1,813,140


Capital Goods 2.9%
Aica Kogyo Co., Ltd. (c)		19,600		356,382
Aida Engineering Ltd.		10,500		84,116
Asahi Diamond Industrial Co., Ltd.		10,900		102,651
Central Glass Co., Ltd.		105,000		322,122
Denyo Co., Ltd.		10,500		117,826
Endo Lighting Corp. (c)		1,600		34,343
Futaba Corp.		19,600		227,133
Hanwa Co., Ltd.		98,000		424,502
Hazama Ando Corp.		29,400		61,728
Hitachi Zosen Corp.		272,500		399,939
Hosokawa Micron Corp.		3,000		18,804
Inaba Denki Sangyo Co., Ltd.		11,300		314,417
Japan Bridge Corp. *(c)		11,100		19,346
Kanamoto Co., Ltd.		3,000		69,622
Kitz Corp. (c)		31,500		134,842
Komori Corp.		7,900		91,468
Kyowa Exeo Corp.		33,900		366,244
Maeda Corp.		32,000		171,228
Makino Milling Machine Co., Ltd.		6,000		34,245
Mirait Holdings Corp.		21,000		166,091
Mitsui Matsushima Co., Ltd.		15,000		22,474
Miura Co., Ltd.		10,900		280,846
MonotaRO Co., Ltd.		4,800		119,566
Nachi-Fujikoshi Corp.		26,000		129,318
Namura Shipbuilding Co., Ltd.		5,500		52,974
NEC Capital Solutions Ltd.		1,800		40,361
Nichias Corp.		19,000		121,031
Nishimatsu Construction Co., Ltd.		12,000		27,641
Nishio Rent All Co., Ltd.		2,000		43,785
Nitto Boseki Co., Ltd. (c)		78,000		287,785
Noritz Corp.		21,000		422,076
Obara Group, Inc. (c)		1,500		40,361
Oiles Corp. (c)		10,500		227,519
Okabe Co., Ltd.		10,500		109,693
Okumura Corp.		113,000		420,374
OSG Corp. (c)		9,800		156,816
Penta-Ocean Construction Co., Ltd.		52,500		124,140
Sankyo Tateyama, Inc.		10,500		213,927
Sanwa Holdings Corp.		45,000		251,796
Shima Seiki Manufacturing Ltd.		9,800		189,378
Sintokogio Ltd.		27,000		192,631
Sodick Co., Ltd.		9,800		43,049
Sumitomo Densetsu Co., Ltd.		2,800		35,216
Sumitomo Mitsui Construction Co., Ltd. *		119,000		92,177
Tadano Ltd. (c)		10,000		140,345
Taikisha Ltd.		10,500		233,298
Takasago Thermal Engineering Co., Ltd.		21,000		166,947
Takuma Co., Ltd.		4,000		34,857
Tatsuta Electric Wire and Cable Co., Ltd.		3,500		29,144
The Nippon Road Co., Ltd.		6,000		30,637
Toa Corp. *		16,000		22,178
Totetsu Kogyo Co., Ltd.		1,700		32,765
Tsubakimoto Chain Co. (c)		24,000		161,443
Tsugami Corp. (c)		5,000		22,219
Wakita & Co., Ltd. (c)		3,000		32,839
YAMABIKO Corp. (c)		900		23,859
Yokogawa Bridge Holdings Corp.		2,000		24,706

				8,117,220


Commercial & Professional Services 0.4%
Daiseki Co., Ltd. (c)		11,300		196,136
Duskin Co., Ltd.		12,100		228,891
Meitec Corp.		11,600		288,359
Mitsubishi Pencil Co., Ltd.		10,500		235,973
Moshi Moshi Hotline, Inc.		1,900		20,837
Nissha Printing Co., Ltd. (c)		5,100		85,195
Pilot Corp.		2,200		74,219
Temp Holdings Co., Ltd. (c)		1,700		37,044

				1,166,654


Consumer Durables & Apparel 0.6%
Alpine Electronics, Inc.		10,500		102,844
Fujibo Holdings, Inc.		10,000		19,467
Gunze Ltd.		105,000		262,192
JVC Kenwood Corp.		31,500		64,532
Mizuno Corp.		39,000		238,893
Pressance Corp.		1,200		33,279
Sangetsu Co., Ltd.		11,300		288,388
Seiko Holdings Corp. (c)		18,000		71,732
Tamron Co., Ltd.		10,500		203,761
Token Corp.		1,050		53,723
Tomy Co., Ltd.		39,200		182,985
Touei Housing Corp.		1,600		33,071
TSI Holdings Co., Ltd.		29,400		192,974

				1,747,841

44 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number			Value
Security	of Shares			($)


Consumer Services 0.7%
Accordia Golf Co., Ltd.		420			456,322
Colowide Co., Ltd. (c)		8,000			84,228
Doutor Nichires Holdings Co., Ltd.		21,000			327,259
HIS Co., Ltd.		4,100			208,103
Resorttrust, Inc.		9,800			315,130
Round One Corp.		3,600			20,290
Saizeriya Co., Ltd. (c)		6,400			84,081
Tokyo Dome Corp.		22,000			147,541
Tokyotokeiba Co., Ltd. (c)		27,000			115,028
Yomiuri Land Co., Ltd.		5,000			41,890
Yoshinoya Holdings Co., Ltd. (c)		10,000			115,171
Zensho Holdings Co., Ltd. (c)		10,500			118,682

					2,033,725


Diversified Financials 0.5%
Fuyo General Lease Co., Ltd.		9,800			316,628
IBJ Leasing Co., Ltd. (c)		9,800			222,539
Ichiyoshi Securities Co., Ltd.		5,200			63,599
Jaccs Co., Ltd.		14,000			60,786
Japan Securities Finance Co., Ltd.		21,000			129,277
kabu.com Securities Co., Ltd.		36,900			165,855
Kyokuto Securities Co., Ltd.		1,500			23,559
Marusan Securities Co., Ltd.		3,900			23,611
Monex Group, Inc.		137			50,547
Okasan Securities Group, Inc.		14,000			105,448
Tokai Tokyo Financial Holdings, Inc.		16,500			114,019
Toyo Securities Co., Ltd.		4,000			11,945
Zenkoku Hosho Co., Ltd.		2,200			78,255

					1,366,068


Energy 0.1%
Itochu Enex Co., Ltd.		10,500			52,439
Japan Drilling Co., Ltd.		600			38,526
Modec, Inc.		3,200			91,256
Shinko Plantech Co., Ltd. (c)		10,500			84,437
Toyo Kanetsu KK		17,000			45,569

					312,227


Food & Staples Retailing 0.3%
Ain Pharmaciez, Inc.		1,400			58,360
Arcs Co., Ltd. (c)		10,500			191,668
Cocokara fine, Inc.		10,500			309,387
Izumiya Co., Ltd. (c)		10,000			44,234
Kusuri No Aoki Co., Ltd.		700			50,155
Ministop Co., Ltd.		2,600			39,352
Okuwa Co., Ltd.		4,000			35,795
Valor Co., Ltd.		10,500			152,178

					881,129
			��

Food, Beverage & Tobacco 0.5%
Fuji Oil Co., Ltd.		19,600			344,995
Fujiya Co., Ltd.		98,000			185,782
Hokuto Corp. (c)		10,500			184,177
Maruha Nichiro Holdings, Inc.		98,000			183,784
Megmilk Snow Brand Co., Ltd.		10,500			151,536
Morinaga Milk Industry Co., Ltd.		98,000			291,658

					1,341,932


Health Care Equipment & Services 0.5%
Asahi Intecc Co., Ltd. (c)		400			23,646
Jeol Ltd.		7,000			30,750
Nagaileben Co., Ltd.		10,500			158,385
Nihon Kohden Corp.		10,500			388,473
Nikkiso Co., Ltd.		5,000			54,681
Ship Healthcare Holdings, Inc.		10,500			380,981
Toho Holdings Co., Ltd.		21,000			346,094
Tokai Corp.		500			13,739
Tsukui Corp.		3,800			42,990

					1,439,739


Household & Personal Products 0.3%
Aderans Co., Ltd. (c)		12,200			174,952
Dr Ci:Labo Co., Ltd. (c)		20			51,919
Fancl Corp.		9,800			123,255
Mandom Corp.		11,300			365,092

					715,218


Materials 1.4%
Adeka Corp.		31,500			344,810
Asahi Holdings, Inc.		10,500			176,578
Daio Paper Corp. (c)		10,000			54,833
Earth Chemical Co., Ltd.		9,800			361,076
Fujimi, Inc.		10,500			133,986
Fujimori Kogyo Co., Ltd.		1,200			36,692
Hokuetsu Kishu Paper Co., Ltd.		13,500			56,551
Ishihara Sangyo Kaisha Ltd. *(c)		98,000			74,912
Konishi Co., Ltd.		900			17,016
Kureha Corp.		32,000			108,281
Kurimoto Ltd.		8,000			22,015
Kyoei Steel Ltd. (c)		10,500			172,084
Nihon Nohyaku Co., Ltd.		3,000			33,389
Nihon Parkerizing Co., Ltd.		7,000			135,270
Nippon Coke & Engineering Co., Ltd.		49,000			55,934
Nippon Light Metal Holdings Co., Ltd.		236,400			301,177
Nippon Soda Co., Ltd.		33,000			191,714
NOF Corp.		32,000			191,449
Sanyo Special Steel Co., Ltd. (c)		30,000			133,007
Sumitomo Light Metal Industries Ltd.		105,000			103,807
Toagosei Co., Ltd.		58,000			234,684
Toho Zinc Co., Ltd.		25,000			73,128
Tokuyama Corp.		98,000			347,592
Tokyo Ohka Kogyo Co., Ltd.		10,500			221,205
Tokyo Steel Manufacturing Co., Ltd.		14,400			70,595
Topy Industries Ltd.		50,000			97,844
Toyo Ink SC Holdings Co., Ltd.		50,000			231,871

					3,981,500


Media 0.2%
Avex Group Holdings, Inc.		9,800			276,376
Kadokawa Corp. (c)		9,800			330,612

					606,988


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
ASKA Pharmaceutical Co., Ltd.		2,000			14,147
JCR Pharmaceuticals Co., Ltd. (c)		2,300			42,875
Nichi-iko Pharmaceutical Co., Ltd.		11,300			237,137
Seikagaku Corp.		19,600			263,291

					557,450


Real Estate 0.5%
Daibiru Corp.		10,500			111,084
Daikyo, Inc.		105,000			306,069
Goldcrest Co., Ltd.		1,900			42,545
Heiwa Real Estate Co., Ltd.		10,500			166,733

See financial notes 45

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Iida Home Max (c)		1,800		32,252
Kenedix, Inc. *(c)		53,700		233,704
Leopalace21 Corp. *		31,500		194,879
Takara Leben Co., Ltd.		20,600		71,176
TOC Co., Ltd. (c)		21,000		167,161

				1,325,603


Retailing 0.8%
AOKI Holdings, Inc.		2,600		74,967
Arata Corp.		11,000		38,903
Arc Land Sakamoto Co., Ltd.		10,500		150,145
ASKUL Corp.		9,800		191,875
Bic Camera, Inc. (c)		105		45,643
DCM Holdings Co., Ltd.		21,000		144,045
EDION Corp. (c)		21,000		114,081
Geo Holdings Corp.		105		93,640
Gulliver International Co., Ltd. (c)		19,600		105,476
Joshin Denki Co., Ltd.		10,000		77,766
Matsuya Co., Ltd. *		9,800		113,267
Start Today Co., Ltd.		9,800		219,742
Tsutsumi Jewelry Co., Ltd.		4,000		94,542
United Arrows Ltd.		9,800		395,037
Xebio Co., Ltd. (c)		10,500		237,150
Yellow Hat Ltd.		10,500		184,391

				2,280,670


Semiconductors & Semiconductor Equipment 0.2%
Sanken Electric Co., Ltd. (c)		18,000		95,398
Shindengen Electric Manufacturing Co., Ltd.		9,000		50,726
Tokyo Seimitsu Co., Ltd.		10,500		197,875
Ulvac, Inc. *		9,800		86,299

				430,298


Software & Services 0.4%
Dwango Co., Ltd.		14		48,871
Fuji Soft, Inc.		9,800		166,804
GMO internet, Inc.		15,100		167,444
Ines Corp. (c)		9,800		56,933
Internet Initiative Japan, Inc.		2,400		69,470
IT Holdings Corp.		9,800		117,262
Net One Systems Co., Ltd.		19,600		146,828
Nihon Unisys Ltd.		19,600		160,012
Transcosmos, Inc.		9,800		148,626

				1,082,250


Technology Hardware & Equipment 0.9%
Ai Holdings Corp.		9,800		100,182
Amano Corp.		10,900		109,539
Canon Electronics, Inc.		10,500		184,819
Daiwabo Holdings Co., Ltd.		105,000		174,438
Enplas Corp.		1,400		103,307
Hitachi Kokusai Electric, Inc.		3,000		30,790
Horiba Ltd.		10,300		334,883
Hosiden Corp.		42,000		223,880
Japan Cash Machine Co., Ltd.		2,500		35,520
Mitsumi Electric Co., Ltd.		9,800		71,916
Nichicon Corp.		20,500		210,610
Nippon Chemi-Con Corp. *		5,000		19,722
Oki Electric Industry Co., Ltd. *		105,000		176,579
Riso Kagaku Corp.		2,600		63,307
Ryosan Co., Ltd.		11,300		190,954
Star Micronics Co., Ltd. (c)		10,500		101,345
Toko, Inc. *		5,000		16,307
Topcon Corp. (c)		10,500		140,193
Wacom Co., Ltd.		42,000		361,718

				2,650,009


Transportation 0.3%
Iino Kaiun Kaisha Ltd.		2,300		11,979
Japan Airport Terminal Co., Ltd. (c)		21,000		386,332
Mitsui-Soko Co., Ltd.		6,000		28,008
Nippon Konpo Unyu Soko Co., Ltd.		10,500		163,415
The Sumitomo Warehouse Co., Ltd.		32,000		169,271

				759,005

				36,806,287

Netherlands 1.9%


Capital Goods 0.4%
Aalberts Industries N.V.		20,115		499,971
Arcadis N.V.		11,678		288,724
Grontmij *		8,206		34,885
Koninklijke BAM Groep N.V.		47,062		191,691
Royal Imtech N.V. *		79,940		193,952

				1,209,223


Commercial & Professional Services 0.0%
USG People N.V.		2,168		15,723


Consumer Durables & Apparel 0.0%
TomTom N.V. *(c)		12,699		77,546


Diversified Financials 0.1%
BinckBank N.V.		18,229		158,643


Food & Staples Retailing 0.1%
Sligro Food Group N.V.		4,150		158,037


Food, Beverage & Tobacco 0.3%
CSM N.V.		15,697		370,702
Nutreco N.V.		12,804		601,048

				971,750


Insurance 0.2%
Delta Lloyd N.V.		29,844		568,641


Materials 0.1%
APERAM		7,595		102,551
Koninklijke Ten Cate N.V.		7,107		172,198

				274,749


Real Estate 0.3%
Eurocommercial Properties N.V.		9,530		354,997
VastNed Retail N.V.		4,969		206,359
Wereldhave N.V.		4,049		268,979

				830,335


Retailing 0.0%
Beter Bed Holding N.V.		3,172		62,864


Semiconductors & Semiconductor Equipment 0.1%
ASM International N.V.		11,008		343,428


Software & Services 0.1%
Unit 4 N.V.		5,294		184,988


Technology Hardware & Equipment 0.1%
TKH Group N.V.		11,056		312,197


Transportation 0.1%
PostNL N.V. *		79,290		279,153

				5,447,277

46 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

New Zealand 0.6%


Energy 0.0%
New Zealand Oil & Gas Ltd.		112,639		74,498


Health Care Equipment & Services 0.2%
Ryman Healthcare Ltd.		79,875		417,064


Insurance 0.0%
Tower Ltd.		36,652		49,049


Materials 0.0%
Nuplex Industries Ltd. (c)		45,049		111,164


Real Estate 0.1%
Goodman Property Trust		256,147		208,050
Precinct Properties New Zealand Ltd.		105,880		85,998

				294,048


Retailing 0.1%
Kathmandu Holdings Ltd.		29,469		66,792
Trade Me Ltd.		32,493		109,337

				176,129


Transportation 0.1%
Freightways Ltd.		31,764		102,461
Mainfreight Ltd.		10,588		86,818

				189,279


Utilities 0.1%
Infratil Ltd.		155,710		286,068

				1,597,299

Norway 2.1%


Banks 0.1%
SpareBank 1 SR Bank A.S.A.		9,001		72,261
Sparebanken 1 SMN		32,417		258,130

				330,391


Commercial & Professional Services 0.2%
Tomra Systems A.S.A.		47,728		426,386


Diversified Financials 0.0%
Aker A.S.A., A Shares		2,940		88,749


Energy 0.9%
BW Offshore Ltd.		63,238		74,913
Det Norske Oljeselskap A.S.A. *(c)		11,350		149,920
DNO International A.S.A. *		222,348		481,811
Fred. Olsen Energy A.S.A.		6,200		286,504
Kvaerner A.S.A. (c)		20,857		32,910
Petroleum Geo-Services A.S.A.		39,705		508,582
Prosafe SE		42,352		377,322
Songa Offshore SE *(c)		24,084		25,387
TGS Nopec Geophysical Co. A.S.A.		19,579		576,332

				2,513,681


Food, Beverage & Tobacco 0.3%
Austevoll Seafood A.S.A.		15,882		86,297
Cermaq A.S.A.		13,235		218,118
Marine Harvest		476,482		442,000

				746,415


Insurance 0.1%
Storebrand A.S.A. *		58,800		328,900


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Algeta A.S.A. *		9,749		410,099


Real Estate 0.1%
Norwegian Property A.S.A.		124,973		164,564


Semiconductors & Semiconductor Equipment 0.1%
Nordic Semiconductor A.S.A. *(c)		43,781		159,308
Renewable Energy Corp. A.S.A. *(c)		296,452		135,927

				295,235


Software & Services 0.1%
Atea A.S.A.		24,927		247,094
Opera Software A.S.A.		10,588		98,477

				345,571


Transportation 0.1%
Golden Ocean Group Ltd. *		36,592		46,572
Norwegian Air Shuttle A.S.A. *		1,456		52,078
Wilh Wilhelmsen A.S.A.		13,507		116,810

				215,460

				5,865,451

Portugal 0.4%


Banks 0.1%
Banco Comercial Portugues S.A. - Reg’d *		1,905,595		241,221


Capital Goods 0.1%
Mota - Engil SGPS S.A.		5,545		20,071
Sonae		236,391		258,715

				278,786


Materials 0.1%
Altri SGPS S.A.		28,430		70,252
Portucel S.A.		39,538		136,854
Semapa-Sociedade de Investimento e Gestao		2,695		23,738

				230,844


Media 0.1%
ZON OPTIMUS, SGPS, S.A.		86,172		473,027

				1,223,878

Republic of Korea 4.3%


Automobiles & Components 0.1%
Kumho Tire Co., Inc. *		13,440		129,551
Nexen Tire Corp.		9,130		129,542
Ssangyong Motor Co. *		20,300		154,163

				413,256


Banks 0.0%
JB Financial Group Co., Ltd. *		18,054		100,187


Capital Goods 0.4%
Hanjin Heavy Industries & Construction Co., Ltd. *		9,500		104,410
Hyundai Elevator Co., Ltd. *		2,790		167,141
iMarketKorea, Inc.		6,000		133,507
Korea Electric Terminal Co., Ltd.		2,000		69,006
Kumho Electric Co., Ltd.		890		22,610
LG International Corp.		9,293		264,546
LS Industrial Systems Co., Ltd.		2,126		118,553
S&T Dynamics Co., Ltd.		3,200		36,034

See financial notes 47

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Sung Kwang Bend Co., Ltd.		3,300		85,023
Taihan Electric Wire Co., Ltd. *		19,579		42,066
TK Corp. *		3,399		72,111

				1,115,007


Commercial & Professional Services 0.1%
KEPCO Plant Service & Engineer Co., Ltd.		2,850		135,561


Consumer Durables & Apparel 0.2%
Fila Korea Ltd.		1,500		88,510
Handsome Co., Ltd.		2,000		47,655
Hanssem Co., Ltd.		2,000		66,844
LG Fashion Corp.		5,800		135,066
Youngone Corp.		4,000		109,905
Youngone Holdings Co., Ltd.		1,780		98,457

				546,437


Consumer Services 0.3%
Grand Korea Leisure Co., Ltd.		2,500		72,519
Hana Tour Service, Inc.		2,970		166,419
Hotel Shilla Co., Ltd.		7,420		449,859
MegaStudy Co., Ltd.		600		39,404
Paradise Co., Ltd.		7,840		156,793

				884,994


Diversified Financials 0.2%
KIWOOM Securities Co., Ltd.		2,840		132,527
Macquarie Korea Infrastructure Fund		48,740		300,330
TONGYANG Securities, Inc.		32,590		87,784

				520,641


Energy 0.0%
SK Gas Co., Ltd.		2,000		129,724


Food & Staples Retailing 0.0%
Dongsuh Cos., Inc.		3,600		94,050


Food, Beverage & Tobacco 0.3%
Binggrae Co., Ltd.		960		78,007
Daesang Corp.		7,130		198,154
Lotte Samkang Co., Ltd.		160		87,924
Maeil Dairy Industry Co., Ltd.		2,000		59,367
Namyang Dairy Products Co., Ltd.		80		58,015
Ottogi Corp.		400		117,472
Samyang Holdings Corp.		1,310		100,429

				699,368


Health Care Equipment & Services 0.0%
Chabio & Diostech Co., Ltd. *		6,400		56,675
Osstem Implant Co., Ltd. *		1,091		26,635

				83,310


Household & Personal Products 0.0%
Able C&C Co., Ltd.		530		16,687


Insurance 0.2%
Korean Reinsurance Co.		23,700		249,800
LIG Insurance Co., Ltd.		7,100		157,344
Meritz Fire & Marine Insurance Co., Ltd.		19,082		220,035

				627,179


Materials 0.6%
CNK International Co., Ltd. *		6,671		30,349
Foosung Co., Ltd. *		20,000		76,483
Hanil Cement Co., Ltd.		1,330		71,409
Hansol Paper Co.		7,690		77,936
Huchems Fine Chemical Corp.		4,000		77,294
Kolon Industries, Inc.		2,920		140,995
Lock & Lock Co., Ltd.		2,000		41,530
Poongsan Corp.		5,250		121,312
Seah Besteel Corp.		5,000		133,778
SK Chemicals Co., Ltd.		5,070		212,611
Soulbrain Co., Ltd.		1,540		65,065
Ssangyong Cement Industrial Co., Ltd. *		7,030		34,705
Taekwang Industrial Co., Ltd.		240		249,935
Young Poong Corp.		186		220,844

				1,554,246


Media 0.2%
CJ CGV Co., Ltd.		4,500		196,613
CJ E&M Corp. *		3,000		103,103
KT Skylife Co., Ltd.		2,500		74,321
SBS Media Holdings Co., Ltd.		3,500		15,182
SM Entertainment Co. *		1,728		51,993
YG Entertainment, Inc.		582		26,530

				467,742


Pharmaceuticals, Biotechnology & Life Sciences 0.4%
Chong Kun Dang Pharm Corp.		1,310		67,031
Daewoong Pharmaceutical Co., Ltd.		1,946		122,890
Dong-A Pharmaceutical Co., Ltd.		1,113		141,375
Dong-A ST Co., Ltd. *		1,254		137,821
Green Cross Cell Corp. *		1,150		35,172
Green Cross Corp.		452		51,102
Hanmi Pharm Co., Ltd. *		920		110,229
Ilyang Pharmaceutical Co., Ltd.		1,500		37,296
Komipharm International Co., Ltd. *		3,742		25,181
LG Life Sciences Ltd. *		3,920		182,219
Medipost Co., Ltd. *		1,901		92,306
Medy-Tox, Inc.		416		40,474
Seegene, Inc. *		1,250		59,907
ViroMed Co., Ltd. *		1,507		45,276

				1,148,279


Retailing 0.3%
CJ O Shopping Co., Ltd.		618		185,781
GS Home Shopping, Inc.		705		134,262
Hyundai Greenfood Co. Ltd.		13,170		207,033
Hyundai Home Shopping Network Corp.		1,540		227,521
Interpark Corp.		7,700		57,574
Lotte Himart Co., Ltd.		2,000		143,237

				955,408


Semiconductors & Semiconductor Equipment 0.3%
Duksan Hi-Metal Co., Ltd. *		3,430		74,622
GemVax & Kael Co., Ltd. *		3,295		61,741
Hansol Technics Co., Ltd. *		1,340		23,117
Iljin Display Co., Ltd.		3,430		53,147
Seoul Semiconductor Co., Ltd.		11,280		380,556
Silicon Works Co., Ltd.		1,920		41,858
STS Semiconductor & Telecommunications *		2,630		10,804
Wonik IPS Co., Ltd. *		9,800		58,268

				704,113


Software & Services 0.1%
Ahnlab, Inc.		1,335		69,754

48 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Com2uSCorp *		964		23,230
Daou Technology, Inc.		4,100		51,894
Gamevil, Inc. *		891		44,789
Haansoft, Inc.		5,000		67,564

				257,231


Technology Hardware & Equipment 0.3%
3S Korea Co., Ltd. *		4,761		23,847
Daeduck Electronics Co., Ltd.		9,350		76,397
Daeduck GDS Co., Ltd.		3,200		55,060
Humax Co., Ltd.		9,800		114,770
Interflex Co., Ltd. *		629		22,836
LG Innotek Co., Ltd. *		2,750		208,842
Partron Co., Ltd.		11,480		188,222
SFA Engineering Corp.		3,616		162,875
Sindoh Co., Ltd.		750		41,890

				894,739


Telecommunication Services 0.1%
SK Broadband Co., Ltd. *		50,200		227,020


Transportation 0.1%
Asiana Airlines, Inc. *		23,700		102,375
Hanjin Transportation Co., Ltd.		3,950		73,659

				176,034


Utilities 0.1%
E1 Corp.		1,395		94,252
Samchully Co., Ltd.		1,305		151,068

				245,320

				11,996,533

Singapore 2.2%


Capital Goods 0.1%
Gallant Venture Ltd. *(c)		525,000		117,192
Tat Hong Holdings Ltd. (c)		105,000		69,493
United Engineers Ltd.		14,000		18,641
Vard Holdings Ltd. *(c)		105,000		70,727
Yoma Strategic Holdings Ltd. (c)		184,813		99,879

				375,932


Commercial & Professional Services 0.1%
Blumont Group Ltd. *(c)		257,251		368,725


Consumer Durables & Apparel 0.0%
China Hongxing Sports Ltd. *(a)(b)		884,000		—


Consumer Services 0.1%
GuocoLeisure Ltd. (c)		105,000		62,091
Raffles Education Corp., Ltd. *		210,000		47,699

				109,790


Diversified Financials 0.0%
Asiasons Capital Ltd. *(c)		86,937		66,390


Energy 0.2%
Ezion Holdings Ltd. (c)		143,000		254,247
Ezra Holdings Ltd. *(c)		226,000		146,920
Swiber Holdings Ltd. (c)		196,000		95,947

				497,114


Food, Beverage & Tobacco 0.2%
First Resources Ltd. (c)		98,000		140,466
GMG Global Ltd.		2,006,000		161,831
Pacific Andes Resources Development Ltd.		420,000		40,791
Super Group Ltd.		40,000		135,971

				479,059


Health Care Equipment & Services 0.1%
Biosensors International Group Ltd. (c)		210,000		138,986
Raffles Medical Group Ltd.		105,000		245,075

				384,061


Materials 0.2%
LionGold Corp., Ltd. *(c)		327,000		435,402
Midas Holdings Ltd. (c)		210,000		75,661

				511,063


Real Estate 1.0%
Ascendas India Trust (c)		105,000		49,344
Ascott Residence Trust (c)		105,000		98,277
Cache Logistics Trust		98,000		87,503
Cambridge Industrial Trust		98,000		49,509
CDL Hospitality Trusts (c)		226,000		276,139
Far East Hospitality Trust (c)		98,000		66,779
Fortune Real Estate Investment Trust (c)		210,000		171,154
Frasers Centrepoint Trust		105,000		147,210
Frasers Commercial Trust		125,000		117,975
Keppel REIT (c)		294,000		276,327
Lippo Malls Indonesia Retail Trust		315,000		106,090
Mapletree Commercial Trust		294,000		259,056
Mapletree Industrial Trust		210,000		210,535
Mapletree Logistics Trust		499,000		412,332
Parkway Life Real Estate Investment Trust		105,000		181,751
Religare Health Trust		105,000		62,091
Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (c)		105,000		91,286
Starhill Global REIT (c)		315,000		188,741
Ying Li International Real Estate Ltd. *		196,000		60,638

				2,912,737


Software & Services 0.0%
CSE Global Ltd.		105,000		71,960


Transportation 0.1%
SATS Ltd.		125,000		294,694


Utilities 0.1%
Cityspring Infrastructure Trust		294,000		104,774
Hyflux Ltd. (c)		98,000		90,573
Sound Global Ltd. *(c)		98,000		48,741

				244,088

				6,315,613

Spain 1.6%


Capital Goods 0.4%
Abengoa S.A. (c)		37,108		96,638
Construcciones y Auxiliar de Ferrocarriles S.A.		763		338,047
Fomento de Construcciones y Contratas S.A. *(c)		1,384		24,573
Gamesa Corp. Tecnologica S.A.		32,522		227,283
Obrascon Huarte Lain S.A.		7,571		259,561

See financial notes 49

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Sacyr Vallehermoso S.A. *		30,723		109,340

				1,055,442


Commercial & Professional Services 0.1%
Prosegur, Compagnia de Seguridad S.A. - Reg’d		63,528		331,721


Consumer Services 0.1%
Melia Hotels International S.A.		11,012		98,811
NH Hoteles S.A. *		10,737		40,704

				139,515
				��

Diversified Financials 0.1%
Bolsas y Mercados Espanoles S.A. (c)		10,588		306,661


Energy 0.1%
Tecnicas Reunidas S.A.		6,904		300,875


Food, Beverage & Tobacco 0.3%
Ebro Foods S.A.		21,405		463,307
Viscofan S.A.		6,200		322,680

				785,987


Insurance 0.1%
Grupo Catalana Occidente S.A.		13,456		347,764


Materials 0.1%
Ence Energia Y Celulosa S.A.		54,310		170,439
Tubacex S.A.		46,327		161,575

				332,014


Media 0.1%
Atresmedia Corporacion de Medios de Comunicaion S.A.		19,815		192,825


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Almirall S.A.		12,594		153,610
Faes Farma S.A.		42,352		121,464
Zeltia S.A. *		42,238		122,807

				397,881


Software & Services 0.1%
Indra Sistemas S.A.		15,680		226,709

				4,417,394

Sweden 3.1%


Capital Goods 0.6%
Concentric AB		3,191		34,971
Haldex AB		5,356		43,368
Lindab International AB *(c)		12,482		112,445
NCC AB, B Shares		16,526		431,439
Peab AB		44,708		247,848
Saab AB, Class B		3,920		71,690
Trelleborg AB, B Shares		51,579		868,696

				1,810,457


Commercial & Professional Services 0.2%
Intrum Justitia AB		5,294		128,798
Loomis AB, B Shares		18,255		392,564

				521,362


Consumer Durables & Apparel 0.1%
JM AB		10,588		271,951
Nobia AB		6,448		50,511

				322,462


Consumer Services 0.2%
Betsson AB *		7,526		200,674
Rezidor Hotel Group AB *		50,830		248,861
SkiStar AB		735		8,968

				458,503


Diversified Financials 0.3%
Avanza Bank Holding AB (c)		9,165		212,621
Investment AB Oresund *		7,405		134,978
L E Lundbergforetagen AB, B Shares		9,432		368,007

				715,606


Food & Staples Retailing 0.2%
Axfood AB		7,990		355,437
ICA Gruppen AB *(c)		11,302		338,474

				693,911


Food, Beverage & Tobacco 0.2%
AarhusKarlshamn AB		7,953		436,698


Materials 0.3%
BillerudKorsnas AB		25,423		230,556
Hexpol AB		3,499		241,414
Hoganas AB, B Shares		6,188		306,689

				778,659


Media 0.0%
Eniro AB *		15,822		43,380


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Active Biotech AB *(c)		4,840		42,107
Meda AB, A Shares		37,910		416,612
Swedish Orphan Biovitrum AB *		22,971		158,835

				617,554


Real Estate 0.6%
Castellum AB		37,694		515,314
Fabege AB		32,499		337,810
Hufvudstaden AB, A Shares		26,479		321,905
Kungsleden AB		26,068		172,395
Wallenstam AB, B Shares		21,176		273,387
Wihlborgs Fastigheter AB		13,160		204,195

				1,825,006


Retailing 0.1%
CDON Group AB *		12,313		37,654
Mekonomen AB		4,443		146,580

				184,234


Technology Hardware & Equipment 0.1%
Axis Communications AB (c)		9,027		245,728


Transportation 0.0%
SAS AB *		22,309		42,177

				8,695,737

Switzerland 3.5%


Banks 0.2%
Basler Kantonalbank		1,101		98,599
St. Galler Kantonalbank AG - Reg’d		545		213,640
Valiant Holding AG - Reg’d		3,384		317,930

				630,169


Capital Goods 0.9%
AFG Arbonia-Forster Holding AG *		1,960		63,589

50 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Belimo Holding AG - Reg’d		113		283,591
Bucher Industries AG - Reg’d		1,161		284,273
Burckhardt Compression Holding AG		210		84,854
Georg Fischer AG - Reg’d *		1,101		595,725
Huber & Suhner AG - Reg’d		5,545		269,103
Meyer Burger Technology AG *(c)		9,127		92,503
OC Oerlikon Corp. AG - Reg’d *		32,276		399,815
Rieter Holding AG - Reg’d *		1,210		220,484
Schweiter Technologies AG		234		147,442

				2,441,379


Commercial & Professional Services 0.2%
Gategroup Holding AG *		2,647		64,018
Kaba Holding AG, B Shares - Reg’d *		986		399,465

				463,483


Consumer Durables & Apparel 0.1%
Forbo Holding AG - Reg’d *		381		268,261


Consumer Services 0.1%
Kuoni Reisen Holding AG - Reg’d *		654		237,955


Diversified Financials 0.1%
Vontobel Holding AG - Reg’d		8,190		302,162


Food, Beverage & Tobacco 0.0%
Emmi AG *		420		117,004


Health Care Equipment & Services 0.1%
Nobel Biocare Holding AG - Reg’d *		16,892		242,764
Straumann Holding AG - Reg’d		429		78,125

				320,889


Insurance 0.2%
Helvetia Holding AG - Reg’d		1,319		564,437


Materials 0.0%
Schmolz + Bickenbach AG - Reg’d *		31,764		115,487


Pharmaceuticals, Biotechnology & Life Sciences 0.4%
Acino Holding AG - Reg’d *		400		31,424
Basilea Pharmaceutica *		397		28,400
Galenica AG - Reg’d		945		721,622
Tecan Group AG - Reg’d		3,078		316,581

				1,098,027


Real Estate 0.2%
Allreal Holding AG - Reg’d *		2,119		289,760
Mobimo Holding AG - Reg’d *		1,586		328,291

				618,051


Retailing 0.3%
Dufry AG - Reg’d *		4,758		630,726
Valora Holding AG - Reg’d		654		132,567

				763,293


Semiconductors & Semiconductor Equipment 0.1%
Ams AG		1,913		149,774


Software & Services 0.1%
Temenos Group AG - Reg’d *		10,943		264,655


Technology Hardware & Equipment 0.1%
Kudelski S.A.		4,523		59,909
Logitech International S.A. - Reg’d		37,589		274,540

				334,449


Transportation 0.3%
Flughafen Zuerich AG - Reg’d		654		331,594
Panalpina Welttransport Holding AG - Reg’d		4,049		601,444

				933,038


Utilities 0.1%
Alpiq Holding AG *		397		50,668
BKW AG		3,374		110,730

				161,398

				9,783,911

United Kingdom 22.4%


Banks 0.2%
Paragon Group Cos. plc		85,988		425,382


Capital Goods 3.2%
Ashtead Group plc		96,878		966,601
Balfour Beatty plc		115,977		442,054
Bodycote plc		38,353		372,582
Carillion plc		83,023		367,947
Chemring Group plc		36,104		171,513
DCC plc		15,897		629,286
Fenner plc		36,627		194,338
Galliford Try plc		14,700		216,707
Interserve plc		28,851		249,926
Keller Group plc		10,588		181,966
Kier Group plc		7,405		169,302
Morgan Crucible Co. plc		51,879		236,341
Morgan Sindall Group plc		9,800		102,706
Qinetiq Group plc		130,498		379,511
Rotork plc		17,089		716,388
Senior plc		105,880		442,549
SIG plc		150,039		405,935
Speedy Hire plc		48,295		42,397
Spirax-Sarco Engineering plc		16,532		760,040
Travis Perkins plc		46,550		1,134,129
Ultra Electronics Holdings plc		14,337		411,400
Vesuvius plc		56,563		403,100

				8,996,718


Commercial & Professional Services 1.4%
Berendsen plc		44,821		596,963
Cape plc		15,213		59,656
De La Rue plc		22,587		347,826
Hays plc		111,287		176,454
Homeserve plc		55,707		208,453
ITE Group plc		46,594		200,660
Michael Page International plc		65,011		465,518
Mitie Group plc		87,992		376,902
Regus plc		180,749		494,614
RPS Group plc		66,221		256,093
Shanks Group plc		74,116		107,484
Sthree plc		21,176		111,620
WS Atkins plc		28,833		526,301

				3,928,544


Consumer Durables & Apparel 1.7%
Barratt Developments plc *		197,475		927,114
Bellway plc		30,169		625,824
Bovis Homes Group plc		26,153		300,791
Persimmon plc *		53,465		908,928
Redrow plc *		92,361		321,465
Taylor Wimpey plc		658,075		1,011,869

See financial notes 51

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
The Berkeley Group Holdings plc		21,982		720,544

				4,816,535


Consumer Services 1.5%
Betfair Group plc		10,588		162,066
Bwin.Party Digital Entertainment plc		148,232		252,230
Dignity plc		13,972		313,393
Domino’s Pizza Group plc		30,551		267,488
Enterprise Inns plc *		80,024		176,647
Greene King plc		50,219		647,883
J.D. Wetherspoon plc		22,198		243,800
Marston’s plc		151,035		364,706
Millennium & Copthorne Hotels plc		40,816		347,892
Mitchells & Butlers plc *		66,846		440,501
Spirit Pub Co. plc		62,330		71,350
The Restaurant Group plc		51,466		430,307
Thomas Cook Group plc *		219,688		479,168

				4,197,431


Diversified Financials 1.6%
Brewin Dolphin Holdings plc		13,874		56,487
Close Brothers Group plc		28,946		464,333
F&C Asset Management plc		105,880		158,872
Henderson Group plc		135,001		344,575
IG Group Holdings plc		67,349		591,755
Intermediate Capital Group plc		94,475		639,524
International Personal Finance plc		51,710		476,342
Jupiter Fund Management plc		52,940		272,785
Provident Financial plc		26,470		690,767
Rathbone Brothers plc		8,632		207,770
SVG Capital plc *		33,784		207,317
Tullett Prebon plc		49,993		264,251

				4,374,778


Energy 1.0%
Afren plc *		196,729		423,614
Anglo Pacific Group plc		10,588		32,102
Bumi plc *		12,033		40,504
Enquest plc *		150,039		288,727
Genel Energy plc *		12,374		177,536
Heritage Oil plc *(c)		36,743		99,040
Hunting plc		32,289		409,073
Lamprell plc *		22,018		50,408
Ophir Energy plc *		62,106		309,831
Premier Oil plc		97,939		545,104
Salamander Energy plc *		75,855		150,195
SOCO International plc		61,531		378,921

				2,905,055


Food & Staples Retailing 0.2%
Booker Group plc		226,102		436,147
Greggs plc		28,581		184,143

				620,290


Food, Beverage & Tobacco 0.6%
Britvic plc		60,710		538,587
Cranswick plc		19,947		344,970
Dairy Crest Group plc		52,347		408,117
Devro plc		67,069		333,138
Greencore Group plc		21,196		48,609
Premier Foods plc *		30,748		62,547

				1,735,968


Health Care Equipment & Services 0.1%
Synergy Health plc		5,880		100,690
United Drug plc		49,044		257,187

				357,877


Household & Personal Products 0.1%
PZ Cussons plc		63,528		394,069


Insurance 1.5%
Amlin plc		91,962		557,928
Beazley plc		153,580		472,770
Catlin Group Ltd.		73,959		534,854
Direct Line Insurance Group plc		105,375		353,394
Hiscox Ltd.		68,159		680,057
Jardine Lloyd Thompson Group plc		26,826		374,927
Lancashire Holdings Ltd.		34,190		380,268
Phoenix Group Holdings		20,390		236,087
St. James’s Place plc		58,621		538,191

				4,128,476


Materials 1.7%
Alent plc		56,563		310,615
Aquarius Platinum Ltd. *		55,748		40,531
AZ Electronic Materials S.A.		75,470		356,888
Centamin plc *		216,757		146,057
DS Smith plc		196,963		785,471
Elementis plc		82,582		316,555
Essentra plc		47,646		567,518
Hochschild Mining plc		39,518		159,795
Kenmare Resources plc *		352,327		143,884
Mondi plc		72,259		1,111,627
New World Resources plc (c)		35,433		37,546
Petra Diamonds Ltd. *		30,199		56,105
Petropavlovsk plc		33,740		55,324
RPC Group plc		26,470		183,972
Synthomer plc		27,617		96,122
Talvivaara Mining Co. plc *		238,253		32,764
Victrex plc		17,415		422,408

				4,823,182


Media 0.4%
Perform Group plc *		7,205		58,290
Rightmove plc		16,932		609,229
UBM plc		37,058		396,116

				1,063,635


Pharmaceuticals, Biotechnology & Life Sciences 0.5%
BTG plc *		74,116		441,517
Dechra Pharmaceuticals plc		15,882		167,799
Genus plc		12,320		278,244
Hikma Pharmaceuticals plc		31,318		491,241

				1,378,801


Real Estate 1.3%
Big Yellow Group plc		38,236		239,547
Capital & Counties Properties plc		128,706		632,526
Derwent London plc		17,076		611,768
Development Securities plc		16,767		49,539
Grainger plc		81,102		215,911
Great Portland Estates plc		66,719		550,613
Hansteen Holdings plc		98,000		149,019
Helical Bar plc		32,566		135,009
Londonmetric Property plc		115,774		193,239
Savills plc		36,684		343,316
Shaftesbury plc		46,214		424,284
Unite Group plc		43,555		241,271

				3,786,042

52 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Retailing 1.8%
Carphone Warehouse Group plc		20,993		76,720
Darty plc		102,216		127,285
Debenhams plc		296,475		491,179
Dixons Retail plc *		673,152		429,536
Dunelm Group plc		15,882		231,921
Halfords Group plc		45,446		254,487
Home Retail Group plc		154,287		340,100
Howden Joinery Group plc		142,938		622,206
Inchcape plc		81,521		742,758
Mothercare plc *		14,842		99,872
N Brown Group plc		63,528		531,649
Ocado Group plc *		77,606		396,761
Sports Direct International plc *		15,886		165,875
SuperGroup plc *		3,944		67,416
WH Smith plc		25,409		333,111

				4,910,876


Semiconductors & Semiconductor Equipment 0.2%
CSR plc		34,842		268,947
Imagination Technologies Group plc *		41,408		158,213

				427,160


Software & Services 0.8%
Aveva Group plc		12,063		432,918
Computacenter plc		19,056		148,715
Fidessa Group plc		10,318		340,287
Micro Focus International plc		39,182		479,734
Moneysupermarket.com Group plc		49,000		128,857
Playtech plc		10,504		110,003
SDL plc		10,588		57,325
Telecity Group plc		29,642		375,767
Xchanging plc		23,650		45,913

				2,119,519


Technology Hardware & Equipment 1.1%
Diploma plc		4,374		40,597
Domino Printing Sciences plc		18,054		186,697
Electrocomponents plc		96,934		388,963
Halma plc		58,234		492,299
Laird plc		59,375		197,655
Oxford Instruments plc		13,364		295,414
Pace plc		53,968		238,678
Premier Farnell plc		95,292		326,949
Renishaw plc		5,294		139,218
Spectris plc		17,160		589,561
Spirent Communications plc		150,039		291,744

				3,187,775


Telecommunication Services 0.3%
Cable & Wireless Communications plc		253,171		151,209
Colt Group S.A. *		124,973		202,020
Kcom Group plc		95,292		124,559
TalkTalk Telecom Group plc		105,880		390,629

				868,417


Transportation 0.9%
BBA Aviation plc		89,998		428,652
FirstGroup plc		237,470		420,975
Go-Ahead Group plc		14,948		342,915
National Express Group plc		118,953		485,782
Stagecoach Group plc		117,371		580,088
Stobart Group Ltd. (c)		124,973		222,319

				2,480,731


Utilities 0.3%
APR Energy plc (c)		11,123		173,782
Pennon Group plc		60,597		656,632
Telecom Plus plc		1,281		26,692

				857,106

				62,784,367

Total Common Stock
(Cost $257,396,353)				277,444,377




Other Investment Companies 0.6% of net assets

Switzerland 0.1%


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
BB Biotech AG - Reg’d *		2,693		349,189

United Kingdom 0.1%


Real Estate 0.1%
F&C Commercial Property Trust Ltd.		112,481		201,836

United States 0.4%


Equity Fund 0.3%
iShares MSCI EAFE Small Cap ETF		15,000		668,700


Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund 0.00% (d)		329,328		329,328

				998,028

Total Other Investment Companies
(Cost $1,381,912)				1,549,053




Preferred Stock 0.2% of net assets

Germany 0.1%


Capital Goods 0.1%
Jungheinrich AG		3,011		163,100
KSB AG		218		126,193

				289,293


Health Care Equipment & Services 0.0%
Draegerwerk AG & Co. KGaA		708		84,955


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Biotest AG		1,050		87,710

				461,958

Italy 0.1%


Insurance 0.1%
Unipol Gruppo Finanziario S.p.A.		58,800		176,622

Total Preferred Stock
(Cost $578,865)				638,580

See financial notes 53

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Rights 0.0% of net assets

Australia 0.0%


Software & Services 0.0%
Iress Ltd. *(a)		9,293		13,988

Germany 0.0%


Capital Goods 0.0%
Gildemeister AG *		15,697		11,798

Singapore 0.0%


Capital Goods 0.0%
United Engineers Ltd. *		14,000		2,050

Total Rights
(Cost $5,815)				27,836




Warrants 0.0% of net assets

Israel 0.0%


Real Estate 0.0%
Africa Israel Investments Ltd. *		3,484		143

Total Warrants
(Cost $—)				143



End of Investments



Collateral Invested for Securities on Loan 6.0% of net assets


State Street Institutional U.S. Government Money Market Fund 0.00% (d)		16,962,784		16,962,784

Total Collateral Invested for Securities on Loan
(Cost $16,962,784)				16,962,784



End of Collateral Invested for Securities on Loan

At 08/31/13, the tax basis cost of the fund’s investments was $262,677,998 and the unrealized appreciation and depreciation were $38,907,833 and ($21,925,842), respectively, with a net unrealized appreciation of $16,981,991.


*		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 $0 or 0.0% of net assets.
(c)		All or a portion of this security is on loan. Securities on loan were valued at $15,929,612.
(d)		The rate shown is the 7-day yield.


ETF —		Exchange Traded Fund
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, 2013 (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		$277,444,377		$—		$—		$277,444,377
Preferred Stock¹		638,580		—		—		638,580
Rights¹		13,848		—		—		13,848
Australia¹		—		—		13,988		13,988
Other Investment Companies¹		1,549,053		—		—		1,549,053
Warrants¹		143		—		—		143

Total		$279,646,001		$—		$13,988		$279,659,989

Other Financial Instruments
Collateral Invested for Securities on Loan		$16,962,784		$—		$—		$16,962,784


¹		As categorized in Portfolio Holdings.

54 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued

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	2012		(Losses)			(Losses)			Purchases		Sales			in		out		2013

Common Stock
China		$—		($122,920	)		$122,920			$—		$—			$—		$—		$—
Rights
Australia		19,152		1,242			(5,164	)		—		(1,242	)		—		—		13,988
Norway		1,383		—			(1,383	)		—		—			—		—		—

Total		$20,535		($121,678	)		$116,373			$—		($1,242	)		$—		$—		$13,988

All net realized and change in unrealized gains (losses) in the table above are reflected on the accompanying Statement of Operations. The change in net unrealized gains (losses) for Level 3 investments held by the fund at August 31, 2013 was $13,988.

See financial notes 55

Schwab International Small-Cap Equity ETF

Statement of

Assets and Liabilities

As of August 31, 2013



Assets

Investments, at value (cost $259,362,945) including securities on loan of $15,929,612		$279,659,989
Collateral invested for securities on loan		16,962,784
Foreign currency, at value (cost $512,153)		508,404
Receivables:
Dividends		430,438
Foreign tax reclaims		114,669
Income from securities on loan	+	29,041

Total assets		297,705,325

Liabilities

Collateral held for securities on loan		16,962,784
Payables:
Investments bought		316,148
Investment adviser fees	+	4,675

Total liabilities		17,283,607

Net Assets

Total assets		297,705,325
Total liabilities	−	17,283,607

Net assets		$280,421,718

Net Assets by Source
Capital received from investors		274,637,460
Net investment income not yet distributed		2,553,743
Net realized capital losses		(17,059,538	)
Net unrealized capital gains		20,290,053

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$280,421,718

9,800,000

$28.61

56 See financial notes

Schwab International Small-Cap Equity ETF

Statement of

Operations

For the period September 1, 2012 through August 31, 2013



Investment Income

Dividends (net of foreign withholding tax of $599,813)		$6,701,809
Securities on loan	+	262,887

Total investment income		6,964,696

Expenses

Investment adviser fees		467,093

Total expenses	−	467,093

Net investment income		6,497,603

Realized and Unrealized Gains (Losses)

Net realized losses on investments (net of foreign capital gains tax of $2)		(6,528,798	)
Net realized gains on in-kind redemptions		5,539,748
Net realized losses on foreign currency transactions	+	(40,310	)

Net realized losses		(1,029,360	)
Net unrealized gains on investments		28,497,535
Net unrealized losses on foreign currency translations	+	(13,992	)

Net unrealized gains	+	28,483,543

Net realized and unrealized gains		27,454,183

Net increase in net assets resulting from operations		$33,951,786

See financial notes 57

Schwab International Small-Cap Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/12-8/31/13				9/1/11-8/31/12
Net investment income		$6,497,603			$4,049,282
Net realized losses		(1,029,360	)		(6,245,748	)
Net unrealized gains (losses)	+	28,483,543			(8,319,145	)

Net increase (decrease) in net assets resulting from operations		33,951,786			(10,515,611	)

Distributions to Shareholders

Distributions from net investment income		($6,079,500	)		($4,859,831	)

Transactions in Fund Shares

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

4,100,000

$112,716,098

900,000

$23,266,002

Shares redeemed

(700,000

)

(19,776,267

)

(400,001

)

(10,419,659

)

Net transactions in fund shares

3,400,000

$92,939,831

499,999

$12,846,343

Shares Outstanding and Net Assets

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

6,400,000

$159,609,601

5,900,001

$162,138,700

Total increase or decrease

3,400,000

120,812,117

499,999

(2,529,099

)

End of period

9,800,000

$280,421,718

6,400,000

$159,609,601

Net investment income not yet distributed

$2,553,743

$1,658,420

58 See financial notes

Schwab Emerging Markets Equity ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			9/1/10–			1/13/10¹–
	8/31/13			8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		23.65			26.10			24.30			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.50			0.63			0.62			0.27
Net realized and unrealized gains (losses)		(0.65	)		(2.51	)		1.41	²		(0.97	)

Total from investment operations		(0.15	)		(1.88	)		2.03			(0.70	)
Less distributions:
Distributions from net investment income		(0.56	)		(0.57	)		(0.23	)		—

Net asset value at end of period		22.94			23.65			26.10			24.30

Total return (%)		(0.89	)		(7.04	)		8.31			(2.80	)³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.15			0.25			0.25			0.30	^4,5
Gross operating expenses		0.15			0.25			0.25			0.30	^4,5
Net investment income (loss)		2.63			2.96			2.78			2.94	⁴
Portfolio turnover rate⁶		15			9			9			23	³
Net assets, end of period ($ x 1,000)		811,915			515,595			396,661			148,222

¹ Commencement of operations.

³ Not annualized.

⁴ Annualized.

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

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

See financial notes 59

Schwab Emerging Markets Equity ETF

Portfolio Holdings as of August 31, 2013

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	.9%	Common Stock		812,360,114		754,429,870
	0	.0%	Corporate Bonds		2,401		226
	0	.2%	Other Investment Companies		1,506,169		1,507,290
	6	.5%	Preferred Stock		65,137,149		52,964,856
	0	.0%	Rights		—		39,538


	99	.6%	Total Investments		879,005,833		808,941,780
	1	.3%	Collateral Invested for Securities on Loan		10,689,828		10,689,828
	(0	.9)%	Other Assets and Liabilities, Net				(7,716,468	)


	100	.0%	Net Assets				811,915,140


	Number		Value
Security	of Shares		($)

Common Stock 92.9% of net assets

Brazil 7.3%


Banks 0.9%
Banco Bradesco S.A.		177,000		2,352,852
Banco do Brasil S.A.		283,200		2,745,987
Banco Santander Brasil S.A.		241,754		1,387,146
Itau Unibanco Holding S.A.		77,880		920,263

				7,406,248


Capital Goods 0.3%
Embraer S.A. ADR		47,552		1,566,839
Weg S.A.		70,800		833,922

				2,400,761


Consumer Durables & Apparel 0.1%
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes		86,376		571,189
MRV Engenharia e Participacoes S.A.		84,960		297,710
PDG Realty S.A. Empreendimentos e Participacoes *		317,184		306,884

				1,175,783


Diversified Financials 0.5%
BM&FBovespa S.A.		571,392		2,809,849
CETIP S.A. - Mercados Organizados		37,183		366,011
Grupo BTG Pactual		47,552		542,091

				3,717,951


Energy 1.2%
Cosan S.A. Industria e Comercio		35,400		619,187
Petroleo Brasileiro S.A.		1,007,902		6,771,073
Ultrapar Participacoes S.A. ADR		106,200		2,326,842

				9,717,102


Food & Staples Retailing 0.0%
Raia Drogasil S.A.		35,400		251,368


Food, Beverage & Tobacco 1.1%
BRF S.A. ADR		255,831		5,937,838
Companhia de Bebidas das Americas ADR		35,400		1,228,380
JBS S.A.		148,680		460,325
Souza Cruz S.A.		141,600		1,489,147

				9,115,690


Household & Personal Products 0.2%
Hypermarcas S.A.		70,762		483,415
Natura Cosmeticos S.A.		60,380		1,137,142

				1,620,557


Insurance 0.2%
BB Seguridade Participacoes S.A.		147,838		1,196,535
Porto Seguro S.A.		28,320		306,288
Sul America S.A.		34,359		202,350

				1,705,173


Materials 1.0%
Companhia Siderurgica Nacional S.A.		236,400		837,324
Duratex S.A.		92,805		471,599
Fibria Celulose S.A. ADR *(a)		35,400		403,560
Gerdau S.A.		35,400		212,948
Usinas Siderurgicas de Minas Gerais S.A. *		70,800		303,488
Vale S.A.		384,095		5,561,396

				7,790,315


Real Estate 0.2%
BR Malls Participacoes S.A.		110,528		841,560
BR Properties S.A.		70,800		540,560
Multiplan Empreendimentos Imobiliarios S.A.		17,700		356,949

				1,739,069


Retailing 0.2%
Cia Hering		35,400		475,187
Lojas Americanas S.A.		31,616		180,743
Lojas Renner S.A.		35,400		854,621

				1,510,551


Software & Services 0.4%
Cielo S.A.		102,660		2,522,451
Totvs S.A.		35,400		556,941

				3,079,392


Telecommunication Services 0.2%
Oi S.A. ADR (a)		267,633		390,744
Tim Participacoes S.A.		303,523		1,197,647

				1,588,391


Transportation 0.4%
All America Latina Logistica S.A.		213,816		830,187
CCR S.A.		318,600		2,325,303

60 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Localiza Rent a Car S.A.		14,210		186,203

				3,341,693


Utilities 0.4%
Centrais Eletricas Brasileiras S.A.		30,000		62,469
Centrais Eletricas Brasileiras S.A. ADR		89,652		190,062
Companhia de Saneamento Basico do Estado de Sao Paulo		84,960		700,137
CPFL Energia S.A. ADR		35,046		572,301
EDP - Energias do Brasil S.A.		106,200		478,016
Light S.A.		35,400		268,046
Tractebel Energia S.A.		70,800		1,018,577

				3,289,608

				59,449,652

Chile 2.0%


Banks 0.5%
Banco de Chile		43,757		6,256
Banco de Chile ADR (a)		16,228		1,342,056
Banco de Credito e Inversiones		7,228		345,593
Banco Santander Chile ADR		47,806		1,064,161
Corp. Financiera Colombiana S.A. *		1,078		20,596
Corpbanca S.A.		52,328,733		497,484
Sociedad Matriz Banco de Chile S.A., B Shares		1,372,256		473,442

				3,749,588


Energy 0.2%
Empresas COPEC S.A.		141,600		1,882,899


Food & Staples Retailing 0.1%
Cencosud S.A.		271,588		1,097,240


Food, Beverage & Tobacco 0.1%
Cia Cervecerias Unidas S.A.		26,550		355,449


Materials 0.3%
Cap S.A.		28,674		612,073
Empresas CMPC S.A.		424,800		1,254,553
Sociedad Quimica y Minera de Chile S.A. ADR		32,658		846,169

				2,712,795


Retailing 0.2%
S.A.C.I. Falabella		130,626		1,293,885


Telecommunication Services 0.0%
Empresa Nacional de Telecomunicaciones S.A.		14,160		224,465


Transportation 0.2%
Latam Airlines Group S.A.		95,232		1,198,019


Utilities 0.4%
Colbun S.A.		3,243,702		835,547
Empresa Nacional de Electricidad S.A. ADR		38,613		1,549,540
Enersis S.A. ADR		70,800		1,118,640

				3,503,727

				16,018,067

China 21.7%


Automobiles & Components 0.8%
Brilliance China Automotive Holdings Ltd. *		864,000		1,270,195
BYD Co., Ltd., H Shares *(a)		80,000		287,321
Chongqing Changan Automobile Co., Ltd., B Shares		247,800		316,365
Dongfeng Motor Group Co., Ltd., H Shares		778,000		1,077,546
Geely Automobile Holdings Ltd. (a)		1,005,000		528,784
Great Wall Motor Co., Ltd., H Shares		361,000		1,838,891
Guangzhou Automobile Group Co., Ltd., H Shares		709,662		723,902

				6,043,004


Banks 5.5%
Agricultural Bank of China Ltd., H Shares		5,664,000		2,432,312
Bank of China Ltd., H Shares		21,792,000		9,161,498
Bank of Communications Co., Ltd., H Shares		2,978,200		1,966,417
China CITIC Bank Corp., Ltd., H Shares		2,894,800		1,381,249
China Construction Bank Corp., H Shares		18,762,000		13,742,928
China Merchants Bank Co., Ltd., H Shares		1,001,158		1,735,217
China Minsheng Banking Corp., Ltd., H Shares (a)		1,524,600		1,639,735
Industrial & Commercial Bank of China Ltd., H Shares		18,761,336		12,314,970

				44,374,326


Capital Goods 1.0%
Beijing Enterprises Holdings Ltd.		177,000		1,255,416
China Communications Construction Co., Ltd., H Shares		1,416,000		1,084,680
China International Marine Containers Group Co., Ltd., H Shares		554,900		915,960
China Railway Construction Corp., Ltd., H Shares		531,000		505,362
China Railway Group Ltd., H Shares		908,000		466,037
Citic Pacific Ltd. (a)		354,000		409,494
CSR Corp., Ltd., H Shares		736,000		535,314
Shanghai Electric Group Co., Ltd., H Shares		708,000		262,040
Shanghai Industrial Holdings Ltd.		354,000		1,159,548
Shanghai Zhenhua Heavy Industry Co., Ltd., B Shares *		1,097,400		431,278
Zhuzhou CSR Times Electric Co., Ltd., H Shares		154,000		485,570

See financial notes 61

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Zoomlion Heavy Industry Science & Technology Co., Ltd., H Shares (a)		298,900		232,817

				7,743,516


Consumer Durables & Apparel 0.2%
Anta Sports Products Ltd. (a)		354,000		457,428
Haier Electronics Group Co., Ltd.		354,000		619,034
Shenzhou International Group Holdings Ltd.		126,000		409,471

				1,485,933


Diversified Financials 0.2%
China Everbright Ltd.		100,000		134,633
CITIC Securities Co., Ltd., H Shares		327,000		636,761
Far East Horizon Ltd.		432,000		261,281
Haitong Securities Co., Ltd., H Shares		548,000		794,326

				1,827,001


Energy 3.3%
China Coal Energy Co., H Shares (a)		1,234,000		727,249
China Oilfield Services Ltd., H Shares		708,000		1,824,234
China Petroleum & Chemical Corp., H Shares		6,440,000		4,642,474
China Shenhua Energy Co., Ltd., H Shares		708,000		2,200,402
CNOOC Ltd.		4,308,000		8,555,555
Inner Mongolia Yitai Coal Co., Ltd., B Shares		495,600		1,025,892
Kunlun Energy Co., Ltd.		708,000		1,031,724
PetroChina Co., Ltd., H Shares		5,664,000		6,164,779
Yanzhou Coal Mining Co., Ltd., H Shares (a)		708,000		629,991

				26,802,300


Food & Staples Retailing 0.1%
China Resources Enterprise Ltd.		328,000		934,798
Wumart Stores, Inc., H Shares		80,000		151,450

				1,086,248


Food, Beverage & Tobacco 0.2%
China Agri-Industries Holdings Ltd.		710,000		333,282
China Yurun Food Group Ltd. *(a)		354,000		223,692
Tsingtao Brewery Co., Ltd., H Shares		116,000		859,409
Yantai Changyu Pioneer Wine Co., Ltd., B Shares		70,780		233,670

				1,650,053


Health Care Equipment & Services 0.2%
Shandong Weigao Group Medical Polymer Co., Ltd., H Shares		476,000		448,721
Shanghai Pharmaceuticals Holding Co., Ltd., H Shares		177,000		335,995
Sinopharm Group Co., H Shares		300,400		753,092

				1,537,808


Household & Personal Products 0.2%
Hengan International Group Co., Ltd.		177,000		1,939,048


Insurance 1.6%
China Life Insurance Co., Ltd., H Shares		2,124,000		5,215,228
China Pacific Insurance (Group) Co., Ltd., H Shares		519,700		1,735,818
China Taiping Insurance Holdings Co., Ltd. *		354,000		484,819
New China Life Insurance Co., Ltd., H Shares *		41,600		113,463
People’s Insurance Co. Group of China Ltd., H Shares (a)		316,000		153,224
PICC Property & Casualty Co., Ltd., H Shares		1,188,000		1,654,596
Ping An Insurance (Group) Co., H Shares		551,000		3,861,917

				13,219,065


Materials 0.8%
Aluminum Corp. of China Ltd., H Shares *(a)		708,000		237,388
Anhui Conch Cement Co., Ltd., H Shares		354,000		1,143,570
BBMG Corp., H Shares (c)(d)		354,000		242,410
China BlueChemical Ltd., H Shares		1,416,000		743,206
China National Building Material Co., Ltd., H Shares		708,000		650,990
China Resources Cement Holdings Ltd.		708,000		449,211
China Zhongwang Holdings Ltd. *(a)		566,400		171,650
Fosun International		531,000		386,897
Jiangxi Copper Co., Ltd., H Shares		357,000		687,813
Lee & Man Paper Manufacturing Ltd.		708,000		419,081
Maanshan Iron & Steel Co., Ltd., H Shares *(a)		708,000		194,475
Nine Dragons Paper Holdings Ltd.		354,000		240,583
Zhaojin Mining Industry Co., Ltd., H Shares		177,000		167,769
Zijin Mining Group Co., Ltd., H Shares (a)		2,124,000		534,123

				6,269,166


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd. *(a)		84,000		315,227


Real Estate 1.5%
Agile Property Holdings Ltd.		354,000		377,081
China Overseas Land & Investment Ltd.		922,000		2,746,595
China Resources Land Ltd.		708,000		1,935,624
China Vanke Co., Ltd., B Shares		583,700		1,175,770
Country Garden Holdings Co., Ltd.		708,000		442,819

62 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Evergrande Real Estate Group Ltd. *(a)		1,062,000		451,950
Greentown China Holdings Ltd.		354,000		661,034
Guangzhou R&F Properties Co., Ltd., H Shares		326,000		532,235
Hopson Development Holdings Ltd. *		256,000		313,298
KWG Property Holding Ltd.		531,000		358,821
Longfor Properties Co., Ltd.		177,000		295,822
Renhe Commercial Holdings Co., Ltd. *(a)		3,540,000		205,432
Shimao Property Holdings Ltd.		354,000		902,074
Sino-Ocean Land Holdings Ltd.		1,416,000		838,161
SOHO China Ltd. (a)		177,000		150,422
Yuexiu Property Co., Ltd.		3,540,000		999,768

				12,386,906


Retailing 0.3%
Belle International Holdings Ltd.		1,242,000		1,716,992
Golden Eagle Retail Group Ltd. (a)		167,000		231,729
GOME Electrical Appliances Holdings Ltd. *		3,894,000		401,733
Zhongsheng Group Holdings Ltd. (a)		177,000		234,649

				2,585,103


Semiconductors & Semiconductor Equipment 0.1%
GCL- Poly Energy Holdings Ltd. *(a)		3,195,000		844,649


Software & Services 1.4%
Tencent Holdings Ltd.		247,800		11,619,220


Technology Hardware & Equipment 0.4%
BOE Technology Group Co., Ltd., B Shares *		374,800		87,968
Kingboard Chemical Holdings Ltd.		211,000		458,767
Lenovo Group Ltd.		1,896,000		1,833,797
ZTE Corp., H Shares *(a)		230,160		445,218

				2,825,750


Telecommunication Services 2.5%
China Mobile Ltd.		1,416,000		15,220,210
China Telecom Corp., Ltd., H Shares		5,664,000		2,855,958
China Unicom (Hong Kong) Ltd.		1,416,000		2,147,447

				20,223,615


Transportation 0.6%
Air China Ltd., H Shares		1,170,000		746,866
China COSCO Holdings Co., Ltd., H Shares *(a)		906,000		415,939
China Merchants Holdings International Co., Ltd.		708,000		2,392,139
Cosco Pacific Ltd.		708,000		1,040,854
Zhejiang Expressway Co., Ltd., H Shares		708,000		592,557

				5,188,355


Utilities 0.8%
China Gas Holdings Ltd.		708,000		738,641
China Longyuan Power Group Corp., H Shares		708,000		747,772
China Resources Power Holdings Co., Ltd.		708,000		1,625,193
Datang International Power Generation Co., Ltd., H Shares		2,124,000		914,856
ENN Energy Holdings Ltd.		238,000		1,181,652
Huaneng Power International, Inc., H Shares		1,048,000		1,044,702

				6,252,816

				176,219,109

Colombia 1.1%


Banks 0.2%
Bancolombia S.A. ADR		33,004		1,817,530


Diversified Financials 0.2%
Corp. Financiera Colombiana S.A.		41,814		832,998
Grupo de Inversiones Suramericana S.A.		47,082		930,651

				1,763,649


Energy 0.4%
Ecopetrol S.A. ADR (a)		67,485		3,013,880


Food & Staples Retailing 0.1%
Almacenes Exito S.A.		45,312		748,259


Materials 0.1%
Cementos Argos S.A.		70,800		334,880
Cemex Latam Holdings S.A. *		39,648		307,095

				641,975


Utilities 0.1%
Interconexion Electrica S.A. ESP		100,536		479,682
Isagen S.A. ESP *		345,858		547,379

				1,027,061

				9,012,354

Czech Republic 0.3%


Banks 0.1%
Komercni Banka A/S		4,602		988,708


Telecommunication Services 0.1%
Telefonica Czech Republic A/S		25,292		376,874


Utilities 0.1%
CEZ A/S		46,374		1,068,902

				2,434,484

Egypt 0.3%


Banks 0.2%
Commercial International Bank GDR - Reg’d		215,940		1,025,715


Telecommunication Services 0.1%
Orascom Telecom Holding SAE GDR - Reg’d *		316,134		943,344

See financial notes 63

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Orascom Telecom Media & Technology Holding SAE GDR (b)(d)		176,826		70,872

				1,014,216

				2,039,931

Hungary 0.4%


Banks 0.2%
OTP Bank plc		66,198		1,226,744


Energy 0.1%
MOL Hungarian Oil & Gas plc		14,868		1,052,313


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Richter Gedeon Nyrt		38,940		623,050

				2,902,107

India 8.0%


Automobiles & Components 0.5%
Bajaj Auto Ltd.		34,176		950,224
Hero Motocorp Ltd.		22,657		701,794
Mahindra & Mahindra Ltd.		65,844		780,571
Maruti Suzuki India Ltd.		21,240		399,773
Tata Motors Ltd.		249,570		1,130,374

				3,962,736


Banks 1.3%
Axis Bank Ltd.		82,988		1,046,237
Bank of Baroda		26,264		183,176
Canara Bank		58,764		180,374
HDFC Bank Ltd.		295,840		2,659,739
Housing Development Finance Corp., Ltd.		308,864		3,359,545
ICICI Bank Ltd.		136,097		1,655,637
IndusInd Bank Ltd.		42,834		231,286
State Bank of India		40,710		935,923
Yes Bank Ltd.		35,046		129,082

				10,380,999


Capital Goods 0.2%
Bharat Heavy Electricals Ltd.		198,240		357,054
Cummins India Ltd.		42,480		252,938
Jaiprakash Associates Ltd.		330,282		165,466
Larsen & Toubro Ltd.		85,098		933,219
Siemens Ltd.		21,594		141,421

				1,850,098


Consumer Durables & Apparel 0.1%
Titan Industries Ltd.		131,808		448,171


Diversified Financials 0.3%
Bajaj Holdings & Investment Ltd.		40,710		495,889
IDFC Ltd.		331,344		403,711
Kotak Mahindra Bank Ltd.		89,208		890,595
Power Finance Corp., Ltd.		70,800		116,911
Rural Electrification Corp., Ltd.		70,800		180,938
Shriram Transport Finance Co., Ltd.		14,160		111,113

				2,199,157


Energy 1.1%
Bharat Petroleum Corp., Ltd.		104,076		430,040
Cairn India Ltd.		65,136		316,166
Coal India Ltd.		142,662		542,837
Essar Oil Ltd. *		110,214		96,168
Hindustan Petroleum Corp., Ltd.		98,412		249,866
Indian Oil Corp., Ltd.		97,704		309,660
Oil & Natural Gas Corp., Ltd.		449,934		1,696,701
Reliance Industries Ltd.		381,274		4,927,362
The Great Eastern Shipping Co., Ltd.		107,616		411,765

				8,980,565


Food, Beverage & Tobacco 0.5%
ITC Ltd.		617,730		2,886,231
Nestle India Ltd.		9,204		682,144
United Spirits Ltd.		29,736		990,532

				4,558,907


Household & Personal Products 0.3%
Colgate-Palmolive (India) Ltd.		28,320		515,778
Dabur India Ltd.		134,108		331,058
Hindustan Unilever Ltd.		196,116		1,874,337

				2,721,173


Materials 0.6%
Ambuja Cements Ltd.		165,082		428,758
Asian Paints Ltd.		75,562		481,426
Hindalco Industries Ltd.		463,386		736,775
Jindal Steel & Power Ltd.		121,422		407,711
JSW Steel Ltd.		59,472		487,379
Sesa Goa Ltd.		122,130		348,903
Sterlite Industries (India) Ltd. ADR		121,932		731,592
Tata Chemicals Ltd.		94,872		355,608
Tata Steel Ltd.		69,384		287,744
Ultratech Cement Ltd.		24,780		553,153

				4,819,049


Media 0.1%
Zee Entertainment Enterprises Ltd.		185,496		649,952


Pharmaceuticals, Biotechnology & Life Sciences 0.6%
Cipla Ltd.		137,352		866,791
Dr. Reddys Laboratories Ltd.		29,028		1,007,391
Lupin Ltd.		78,588		947,053
Piramal Healthcare Ltd.		23,010		218,903
Sun Pharmaceutical Industries Ltd.		201,780		1,591,762
Wockhardt Ltd.		19,525		138,732

				4,770,632


Real Estate 0.1%
DLF Ltd.		140,538		276,099
Unitech Ltd. *		783,216		196,189

				472,288


Software & Services 1.6%
HCL Technologies Ltd.		69,384		1,092,638
Infosys Ltd.		138,110		6,492,341
Mphasis Ltd.		48,498	��	308,884
Oracle Financial Services Software Ltd. *		4,956		222,517
Tata Consultancy Services Ltd.		86,376		2,658,085
Tech Mahindra Ltd.		35,260		733,805
Wipro Ltd. ADR (a)		131,512		1,186,238

				12,694,508

64 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Telecommunication Services 0.4%
Bharti Airtel Ltd.		431,880		1,955,128
Idea Cellular Ltd. *		468,696		1,134,320

				3,089,448


Transportation 0.0%
Adani Ports & Special Economic Zone Ltd.		106,200		202,450
Container Corp. Of India Ltd.		7,080		111,644

				314,094


Utilities 0.3%
GAIL India Ltd.		117,528		525,558
NHPC Ltd.		177,000		42,864
NTPC Ltd.		415,242		822,691
Power Grid Corp. of India Ltd.		340,194		502,799
Reliance Infrastructure Ltd.		31,860		165,063
Reliance Power Ltd. *		197,532		202,405
Tata Power Co., Ltd.		354,000		406,401

				2,667,781

				64,579,558

Indonesia 2.8%


Automobiles & Components 0.4%
PT Astra International Tbk		5,313,800		2,944,001


Banks 0.9%
PT Bank Danamon Indonesia Tbk		354,000		131,291
PT Bank Central Asia Tbk		3,363,000		2,787,102
PT Bank Mandiri (Persero) Tbk		2,301,459		1,496,370
PT Bank Negara Indonesia (Persero) Tbk		1,062,316		374,535
PT Bank Rakyat Indonesia (Persero) Tbk		3,540,000		2,139,560

				6,928,858


Capital Goods 0.1%
PT United Tractors Tbk		708,000		1,024,396


Energy 0.1%
PT Adaro Energy Tbk		3,894,000		331,632
PT Bumi Resources Tbk *		5,841,000		219,305
PT Indo Tambangraya Megah Tbk		51,500		151,151
PT Tambang Batubara Bukit Asam (Persero) Tbk		354,000		392,253

				1,094,341


Food, Beverage & Tobacco 0.3%
PT Astra Agro Lestari Tbk		153,000		276,717
PT Charoen Pokphand Indonesia Tbk		2,183,000		674,691
PT Gudang Garam Tbk		129,200		449,005
PT Indofood Sukses Makmur Tbk		1,262,400		751,429

				2,151,842


Household & Personal Products 0.1%
PT Unilever Indonesia Tbk		396,000		1,131,428


Materials 0.2%
PT Indocement Tunggal Prakarsa Tbk		354,000		638,627
PT Semen Indonesia (Persero) Tbk		778,000		897,692
PT Vale Indonesia Tbk		885,000		186,401

				1,722,720


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
PT Kalbe Farma Tbk		8,850,000		1,094,093


Telecommunication Services 0.4%
PT Indosat Tbk		216,000		81,594
PT Telekomunikasi Indonesia Persero Tbk		14,160,000		2,852,747

				2,934,341


Transportation 0.0%
PT Jasa Marga Persero Tbk		712,000		355,348


Utilities 0.2%
PT Perusahaan Gas Negara (Persero) Tbk		2,832,000		1,400,439

				22,781,807

Malaysia 4.8%


Automobiles & Components 0.1%
UMW Holdings Berhad		247,800		949,029


Banks 1.3%
Alliance Financial Group Berhad		569,800		876,015
CIMB Group Holdings Berhad		1,324,800		2,936,158
Hong Leong Bank Berhad		182,600		783,822
Malayan Banking Berhad		1,281,600		3,901,667
Public Bank Berhad - Foreign Market		371,200		1,939,201
RHB Capital Berhad		182,600		415,815

				10,852,678


Capital Goods 0.5%
Gamuda Berhad		781,000		1,062,812
IJM Corp. Berhad		362,500		610,282
Sime Darby Berhad		814,200		2,327,525

				4,000,619


Consumer Services 0.4%
Berjaya Sports Toto Berhad		330,146		401,030
Genting Berhad		637,200		1,809,902
Genting Malaysia Berhad		829,100		1,062,641

				3,273,573


Diversified Financials 0.2%
AMMB Holdings Berhad		566,400		1,281,179


Energy 0.2%
Petronas Dagangan Berhad		106,200		898,808
Sapurakencana Petroleum Berhad *		498,100		544,388

				1,443,196


Food, Beverage & Tobacco 0.5%
British American Tobacco Malaysia Berhad		35,400		669,688
Felda Global Ventures Holdings Berhad		141,600		188,383
IOI Corp. Berhad		1,227,000		2,017,140
Kuala Lumpur Kepong Berhad		147,400		965,689
PPB Group Berhad		147,400		598,620

				4,439,520

See financial notes 65

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Health Care Equipment & Services 0.1%
IHH Healthcare Berhad *		531,000		648,241


Materials 0.2%
Lafarge Malaysia Berhad		106,200		305,854
Petronas Chemicals Group Berhad		637,200		1,284,196

				1,590,050


Media 0.0%
Astro Malaysia Holdings Berhad		177,000		159,501


Real Estate 0.1%
SP Setia Berhad		580,600		567,388
UEM Land Holdings Berhad		354,000		271,582

				838,970


Telecommunication Services 0.8%
Axiata Group Berhad		1,539,700		3,159,320
DiGi.com Berhad		1,380,600		1,975,438
Maxis Berhad		605,000		1,259,822
Telekom Malaysia Berhad		177,000		291,520

				6,686,100


Utilities 0.4%
Petronas Gas Berhad		195,300		1,197,455
Tenaga Nasional Berhad		354,250		941,503
YTL Corp. Berhad		1,354,240		639,036
YTL Power International Berhad		885,000		431,083

				3,209,077

				39,371,733

Mexico 5.6%


Banks 0.8%
Grupo Financiero Banorte S.A.B. de C.V., O Shares		612,800		3,831,836
Grupo Financiero Inbursa S.A.B. de C.V., O Shares		566,400		1,208,139
Grupo Financiero Santander Mexico S.A.B. de C.V., B Shares		460,200		1,254,245

				6,294,220


Capital Goods 0.3%
Alfa S.A.B. de C.V., A Shares		637,200		1,610,657
Grupo Carso S.A.B. de C.V., Series A1		247,800		1,224,524

				2,835,181


Food & Staples Retailing 0.5%
Organizacion Soriana S.A.B. de C.V., B Shares *		43,200		134,498
Wal-Mart de Mexico S.A.B. de C.V., Series V		1,557,600		3,737,680

				3,872,178


Food, Beverage & Tobacco 1.1%
Arca Continental S.A.B. de C.V.		106,200		672,817
Coca-Cola Femsa S.A.B. de C.V., Series L		118,400		1,411,454
Fomento Economico Mexicano S.A.B. de C.V.		589,600		5,585,126
Grupo Bimbo S.A.B. de C.V., Series A		495,600		1,442,036

				9,111,433


Household & Personal Products 0.1%
Kimberly-Clark de Mexico S.A.B. de C.V., A Shares		212,400		602,267


Materials 1.2%
Cemex S.A.B. de C.V., Series CPO *		2,938,200		3,338,264
Grupo Mexico S.A.B. de C.V., Series B		1,097,400		3,139,655
Industrias CH S.A.B. de C.V., Series B *		35,400		203,566
Industrias Penoles S.A.B. de C.V.		35,400		1,081,195
Mexichem S.A.B. de C.V.		318,600		1,269,437
Minera Frisco S.A.B. de C.V., Series A1 *		177,000		481,076

				9,513,193


Media 0.5%
Grupo Televisa S.A.B., Series CPO		798,400		4,008,743


Retailing 0.1%
Grupo Elektra S.A. de C.V.		17,750		580,079


Telecommunication Services 1.0%
America Movil S.A.B. de C.V., Series L		8,566,800		8,251,127


Transportation 0.0%
Grupo Aeroportuario del Sureste S.A.B. de C.V., B Shares		35,400		397,561

				45,465,982

Pakistan 0.0%


Energy 0.0%
Oil & Gas Development Co., Ltd. GDR - Reg’d (d)		9,984		209,664

Peru 0.3%


Banks 0.2%
Credicorp Ltd.		16,388		1,986,881


Materials 0.1%
Companhia de Minas Buenaventura S.A. ADR		68,322		862,907

				2,849,788

Philippines 1.5%


Banks 0.3%
Bank of the Philippine Islands		612,659		1,263,781
BDO Unibank, Inc.		493,800		819,309
Metropolitan Bank & Trust		197,886		361,608

				2,444,698


Capital Goods 0.4%
Aboitiz Equity Ventures, Inc.		495,600		511,157
Alliance Global Group, Inc. *		1,097,400		639,740
DMCI Holdings, Inc.		247,800		268,080
San Miguel Corp.		230,100		386,939

66 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
SM Investments Corp.		97,335		1,462,207

				3,268,123


Consumer Services 0.1%
Bloomberry Resorts Corp. *		389,400		94,294
Jollibee Foods Corp.		113,280		408,926

				503,220


Diversified Financials 0.1%
Ayala Corp.		42,720		522,027


Food, Beverage & Tobacco 0.1%
Universal Robina Corp.		219,480		590,037


Real Estate 0.2%
Ayala Land, Inc.		1,416,000		841,345
SM Prime Holdings, Inc.		1,770,000		642,915

				1,484,260


Telecommunication Services 0.1%
Philippine Long Distance Telephone Co.		19,525		1,259,932


Transportation 0.1%
International Container Terminal Services, Inc.		329,220		701,253


Utilities 0.1%
Aboitiz Power Corp.		708,000		515,919
Energy Development Corp.		3,046,400		393,437
Manila Electric Co.		42,480		247,641

				1,156,997

				11,930,547

Poland 1.7%


Banks 0.7%
Bank Handlowy w Warszawie S.A.		15,222		480,955
Bank Pekao S.A.		31,860		1,712,189
BRE Bank S.A.		3,186		434,935
Getin Noble Bank S.A. *		585,169		374,118
Powszechna Kasa Oszczednosci Bank Polski S.A. *		200,718		2,374,954

				5,377,151


Energy 0.2%
Polski Koncern Naftowy Orlen S.A.		97,350		1,352,722
Polskie Gornictwo Naftowe I Gazownictwo S.A.		389,400		743,261

				2,095,983


Insurance 0.3%
Powszechny Zaklad Ubezpieczen S.A.		17,700		2,394,167


Materials 0.3%
Jastrzebska Spolka Weglowa S.A.		14,240		298,764
KGHM Polska Miedz S.A.		42,270		1,600,587
Synthos S.A.		174,522		238,787

				2,138,138


Telecommunication Services 0.0%
Telekomunikacja Polska S.A.		170,982		403,988


Utilities 0.2%
PGE S.A.		281,076		1,474,938
Tauron Polska Energia S.A.		204,763		270,678

				1,745,616

				14,155,043

Russia 7.0%


Banks 1.1%
Sberbank of Russia		1		3
Sberbank of Russia ADR		685,758		7,227,889
VTB Bank OJSC GDR - Reg’d		602,862		1,597,584

				8,825,476


Energy 3.9%
Gazprom OAO		1		4
Gazprom OAO ADR		1,391,220		10,934,989
LUKOIL OAO		1		58
LUKOIL OAO ADR		166,026		9,621,207
NovaTek OAO GDR - Reg’d		25,488		3,053,462
Rosneft OJSC GDR - Reg’d		488,520		3,590,622
Surgutneftegas OAO		1		1
Surgutneftegas OAO ADR		193,284		1,505,682
Tatneft OAO		1		6
Tatneft OAO ADR		71,862		2,723,570

				31,429,601


Food & Staples Retailing 0.6%
Magnit OJSC GDR - Reg’d		90,624		5,029,632


Materials 0.5%
MMC Norilsk Nickel OJSC		1		131
MMC Norilsk Nickel OJSC ADR		134,520		1,752,796
Novolipetsk Steel OJSC GDR - Reg’d		20,532		329,539
Severstal OAO GDR - Reg’d		79,296		654,985
Uralkali OJSC GDR - Reg’d		65,844		1,547,334

				4,284,785


Real Estate 0.0%
LSR Group GDR - Reg’d		48,144		202,205


Telecommunication Services 0.7%
MegaFon OAO GDR		27,628		933,826
Mobile TeleSystems OJSC ADR		142,784		3,021,310
Rostelecom OJSC ADR		64,831		1,201,318
Sistema JSFC GDR - Reg’d		33,428		740,096

				5,896,550


Utilities 0.2%
RusHydro JSC ADR		920,432		1,445,078
Russian Grids OAO *		1		—

				1,445,078

				57,113,327

South Africa 9.3%


Banks 0.8%
Barclays Africa Group Ltd.		96,996		1,297,574
Nedbank Group Ltd.		69,030		1,270,729
Standard Bank Group Ltd.		366,390		4,096,441

				6,664,744


Capital Goods 0.4%
Aveng Ltd.		139,476		370,992

See financial notes 67

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Barloworld Ltd.		62,658		536,946
Bidvest Group Ltd.		73,278		1,808,731
Reunert Ltd.		60,888		406,673

				3,123,342


Consumer Durables & Apparel 0.2%
Steinhoff International Holdings Ltd. *		454,890		1,304,128


Consumer Services 0.0%
Sun International Ltd.		28,320		260,828


Diversified Financials 0.9%
African Bank Investments Ltd.		212,400		338,687
FirstRand Ltd.		770,304		2,261,795
Investec Ltd.		89,562		581,047
JSE Ltd.		47,120		361,647
Remgro Ltd.		136,290		2,488,646
RMB Holdings Ltd.		259,482		1,024,398

				7,056,220


Energy 0.9%
Exxaro Resources Ltd.		41,064		651,146
Sasol Ltd.		150,096		7,061,884

				7,713,030


Food & Staples Retailing 0.5%
Clicks Group Ltd.		66,624		356,703
Massmart Holdings Ltd.		28,026		431,049
Pick n Pay Stores Ltd.		75,048		280,596
Shoprite Holdings Ltd.		126,732		1,994,349
The Spar Group Ltd.		63,012		709,124

				3,771,821


Food, Beverage & Tobacco 0.2%
AVI Ltd.		120,714		648,303
Tiger Brands Ltd.		44,958		1,241,361

				1,889,664


Health Care Equipment & Services 0.3%
Life Healthcare Group Holdings Ltd.		264,084		912,857
Mediclinic International Ltd.		89,681		645,483
Netcare Ltd.		393,294		891,738

				2,450,078


Insurance 0.5%
Discovery Holdings Ltd.		113,988		941,979
MMI Holdings Ltd.		394,710		792,812
Sanlam Ltd.		462,324		2,077,997

				3,812,788


Materials 1.2%
AECI Ltd.		43,188		493,408
African Rainbow Minerals Ltd.		25,488		468,694
Anglo American Platinum Ltd. *		19,116		764,845
AngloGold Ashanti Ltd.		98,766		1,350,185
Gold Fields Ltd.		204,612		1,077,105
Harmony Gold Mining Co., Ltd.		143,370		541,085
Impala Platinum Holdings Ltd.		147,618		1,636,036
Kumba Iron Ore Ltd.		19,116		839,977
Mondi Ltd.		42,170		646,612
Nampak Ltd.		227,622		666,796
Northam Platinum Ltd. *		34,176		139,160
PPC Ltd.		166,734		482,407
Sappi Ltd. *		84,960		203,005
Sibanye Gold Ltd. *		199,792		205,625

				9,514,940


Media 1.1%
Naspers Ltd., N Shares		104,784		8,680,363


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Aspen Pharmacare Holdings Ltd. *		97,350		2,243,299


Real Estate 0.3%
Capital Property Fund		534,540		512,044
Fountainhead Property Trust		466,726		342,718
Growthpoint Properties Ltd.		562,152		1,303,692

				2,158,454


Retailing 0.6%
Imperial Holdings Ltd.		54,162		1,101,275
Mr. Price Group Ltd.		70,800		865,694
The Foschini Group Ltd.		71,154		668,602
Truworths International Ltd.		129,210		1,034,841
Woolworths Holdings Ltd.		221,604		1,475,989

				5,146,401


Telecommunication Services 1.1%
MTN Group Ltd.		436,836		8,012,855
Telkom SA SOC Ltd. *		153,312		342,822
Vodacom Group Ltd.		93,102		1,055,114

				9,410,791


Transportation 0.0%
Grindrod Ltd.		105,846		240,714

				75,441,605

Taiwan 13.6%


Automobiles & Components 0.2%
Cheng Shin Rubber Industry Co., Ltd.		492,557		1,267,419
Yulon Motor Co., Ltd.		222,666		366,838

				1,634,257


Banks 1.4%
Chang Hwa Commercial Bank		1,644,542		890,293
China Development Financial Holding Corp.		3,917,268		1,074,730
CTBC Financial Holding Co., Ltd.		3,601,188		2,268,456
E.Sun Financial Holding Co., Ltd.		1,650,102		1,044,944
First Financial Holding Co., Ltd.		1,716,786		992,511
Hua Nan Financial Holdings Co., Ltd.		2,313,851		1,260,364
Mega Financial Holding Co., Ltd.		2,522,069		1,925,823
SinoPac Financial Holdings Co., Ltd.		1,557,976		695,049
Taishin Financial Holding Co., Ltd.		1,415,281		610,106
Taiwan Cooperative Financial Holding		1,674,449		895,293

				11,657,569


Capital Goods 0.2%
Far Eastern New Century Corp.		1,121,583		1,204,996
Taiwan Glass Industrial Corp.		380,036		348,610

68 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Walsin Lihwa Corp. *		1,416,000		418,774

				1,972,380


Commercial & Professional Services 0.0%
Taiwan Secom Co., Ltd.		48,000		113,887


Consumer Durables & Apparel 0.2%
Formosa Taffeta Co., Ltd.		354,000		324,136
Giant Manufacturing Co., Ltd.		38,000		255,877
Pou Chen Corp.		715,580		781,950

				1,361,963


Diversified Financials 0.6%
Capital Securities Corp.		1,081,629		356,031
Fubon Financial Holding Co., Ltd.		2,005,078		2,747,187
Yuanta Financial Holding Co., Ltd.		2,861,316		1,434,268

				4,537,486


Energy 0.2%
Formosa Petrochemical Corp.		562,000		1,427,325


Food & Staples Retailing 0.1%
President Chain Store Corp.		141,000		984,778


Food, Beverage & Tobacco 0.3%
Uni-President Enterprises Corp.		1,294,922		2,358,377


Insurance 0.4%
Cathay Financial Holding Co., Ltd.		1,739,540		2,464,753
Shin Kong Financial Holding Co., Ltd. *		2,149,151		725,373

				3,190,126


Materials 2.0%
Asia Cement Corp.		745,810		932,122
China Steel Corp.		2,961,734		2,504,031
Formosa Chemicals & Fibre Corp.		1,123,500		2,917,207
Formosa Plastics Corp.		1,469,120		3,662,429
Nan Ya Plastics Corp.		2,145,060		4,200,589
Taiwan Cement Corp.		895,690		1,182,300
Taiwan Fertilizer Co., Ltd.		82,000		188,254
YFY, Inc.		708,000		345,429

				15,932,361


Real Estate 0.0%
Cathay Real Estate Development Co., Ltd.		432,000		313,268


Retailing 0.1%
Hotai Motor Co., Ltd.		65,000		642,951


Semiconductors & Semiconductor Equipment 3.9%
Advanced Semiconductor Engineering, Inc.		2,265,488		2,002,445
Epistar Corp.		89,000		145,733
Macronix International Co., Ltd. *		1,086,383		253,766
MediaTek, Inc.		354,099		4,342,740
MStar Semiconductor, Inc.		72,255		659,179
Novatek Microelectronics Corp.		79,000		328,677
Realtek Semiconductor Corp.		101,000		224,111
Siliconware Precision Industries Co. ADR		225,498		1,237,984
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		1,286,082		21,297,518
United Microelectronics Corp. ADR		707,862		1,387,410

				31,879,563


Technology Hardware & Equipment 3.1%
Acer, Inc. *		708,086		472,065
Advantech Co., Ltd.		47,500		241,274
Asustek Computer, Inc.		176,426		1,406,125
AU Optronics Corp. ADR *		247,800		951,552
Catcher Technology Co., Ltd.		120,200		572,390
Chicony Electronics Co., Ltd.		86,815		200,758
Compal Communications, Inc.		354,000		446,574
Compal Electronics, Inc.		1,065,610		717,541
Delta Electronics, Inc.		654,000		2,961,353
Foxconn Technology Co., Ltd.		401,684		1,024,194
Hon Hai Precision Industry Co., Ltd.		2,485,880		6,745,424
HTC Corp.		202,650		1,059,825
Innolux Corp. *		2,006,000		1,005,531
Inventec Corp.		1,091,145		887,880
Largan Precision Co., Ltd.		17,000		593,661
Lite-On Technology Corp.		714,345		1,210,289
Pegatron Corp. *		380,441		588,629
Quanta Computer, Inc.		708,000		1,492,917
Synnex Technology International Corp.		360,053		567,311
TPK Holding Co., Ltd.		54,996		584,428
Unimicron Technology Corp.		708,000		574,927
Wistron Corp.		787,735		706,802
Yageo Corp. *		456,000		151,774

				25,163,224


Telecommunication Services 0.7%
Chunghwa Telecom Co., Ltd. ADR		102,660		3,228,657
Far EasTone Telecommunications Co., Ltd.		388,000		981,523
Taiwan Mobile Co., Ltd.		415,600		1,499,935

				5,710,115


Transportation 0.2%
China Airlines Ltd. *		934,000		327,725
Eva Airways Corp. *		404,000		214,660
Evergreen Marine Corp., Ltd. *		449,199		253,687
U-Ming Marine Transport Corp.		190,000		292,704
Yang Ming Marine Transport Corp. *		369,200		161,624

				1,250,400

				110,130,030

Thailand 2.8%


Banks 0.8%
Bangkok Bank PCL NVDR		141,600		787,400
Bank of Ayudhya PCL NVDR		283,200		334,315
Kasikornbank PCL NVDR		424,800		2,098,267
Krung Thai Bank PCL NVDR		1,497,700		767,693
Siam Commercial Bank PCL NVDR		503,900		2,105,454
TMB Bank PCL NVDR		3,717,000		281,748

				6,374,877

See financial notes 69

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Energy 0.6%
Banpu PCL NVDR		35,400		303,523
IRPC PCL NVDR		4,283,400		396,537
PTT Exploration & Production PCL NVDR		409,804		2,119,676
PTT PCL NVDR		206,100		2,093,653
Thai Oil PCL NVDR		141,600		239,739

				5,153,128


Food & Staples Retailing 0.2%
Big C Supercenter PCL NVDR		70,800		411,295
CP ALL PCL NVDR		1,366,400		1,390,171

				1,801,466


Food, Beverage & Tobacco 0.1%
Charoen Pokphand Foods PCL NVDR		1,097,400		790,919


Health Care Equipment & Services 0.0%
Bangkok Dusit Medical Services PCL NVDR		86,400		346,244


Materials 0.3%
Indorama Ventures PCL NVDR		354,000		190,252
PTT Global Chemical PCL NVDR		361,014		773,842
Siam Cement PCL NVDR		106,200		1,296,570

				2,260,664


Media 0.1%
BEC World PCL NVDR		389,400		659,282


Real Estate 0.1%
Central Pattana PCL NVDR		426,000		489,655
Land & Houses PCL NVDR		708,000		211,147

				700,802


Telecommunication Services 0.4%
Advanced Info Service PCL NVDR		318,600		2,375,396
Shin Corp. PCL NVDR		389,400		919,366
Total Access Communication PCL NVDR		106,200		328,267

				3,623,029


Transportation 0.1%
Airports of Thailand PCL NVDR		106,200		539,413
Thai Airways International PCL NVDR		177,000		89,077

				628,490


Utilities 0.1%
Electricity Generating PCL NVDR		70,800		283,728
Glow Energy PCL NVDR		152,300		296,888

				580,616

				22,919,517

Turkey 1.9%


Automobiles & Components 0.1%
Ford Otomotiv Sanayi A/S		24,780		310,016


Banks 0.8%
Akbank T.A.S.		424,484		1,411,996
Turkiye Garanti Bankasi A/S		472,590		1,632,299
Turkiye Halk Bankasi A/S		133,458		851,198
Turkiye Is Bankasi, C Shares		426,924		1,001,201
Turkiye Vakiflar Bankasi Tao, D Shares		302,784		594,204
Yapi ve Kredi Bankasi A/S		275,058		547,889

				6,038,787


Capital Goods 0.2%
Dogan Sirketler Grubu Holdings A/S *		493,680		208,299
Enka Insaat ve Sanayi A/S		77,059		184,873
KOC Holding A/S		253,486		1,024,764
Turkiye Sise ve Cam Fabrikalari A/S		115,003		148,391

				1,566,327


Consumer Durables & Apparel 0.0%
Arcelik A/S		52,746		266,544


Diversified Financials 0.1%
Haci Omer Sabanci Holding A/S		209,968		896,221


Energy 0.1%
Tupras-Turkiye Petrol Rafinerileri A/S		43,542		837,408


Food & Staples Retailing 0.1%
BIM Birlesik Magazalar A/S		55,735		1,025,420


Food, Beverage & Tobacco 0.1%
Anadolu Efes Biracilik ve Malt Sanayii A/S		61,242		707,592


Materials 0.1%
Eregli Demir ve Celik Fabrikalari T.A.S.		580,421		629,329


Real Estate 0.0%
Emlak Konut Gayrimenkul Yatirim Ortakligi A/S		219,480		256,280


Telecommunication Services 0.2%
Turk Telekomunikasyon A/S		211,824		648,488
Turkcell Iletisim Hizmetleri A/S *		207,798		1,090,857

				1,739,345


Transportation 0.1%
Turk Hava Yollari Anonim Ortakligi		295,534		916,362

				15,189,631

United Arab Emirates 0.5%


Banks 0.1%
First Gulf Bank PJSC		206,938		904,250


Capital Goods 0.0%
Arabtec Holding Co. *		93,810		58,231


Diversified Financials 0.1%
Dubai Financial Market *		733,744		359,576


Energy 0.0%
Dana Gas PJSC *		1,372,458		212,984


Real Estate 0.2%
Aldar Properties PJSC		451,350		302,289
Emaar Properties PJSC		865,176		1,354,395

				1,656,684

70 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Transportation 0.1%
DP World Ltd.		66,078		1,024,209

				4,215,934

Total Common Stock
(Cost $812,360,114)				754,429,870



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		226

Total Corporate Bond
(Cost $2,401)				226



	Number		Value
Security	of Shares		($)

Other Investment Companies 0.2% of net assets

United States 0.2%


Equity Fund 0.1%
Vanguard FTSE Emerging Markets ETF		16,000		603,520


Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund 0.00% (e)		903,770		903,770

Total Other Investment Companies
(Cost $1,506,169)				1,507,290




Preferred Stock 6.5% of net assets

Brazil 6.3%


Banks 2.2%
Banco Bradesco S.A.		566,400		6,602,282
Itau Unibanco Holding S.A. ADR		647,764		7,883,288
Itausa - Investimentos Itau S.A.		883,775		3,108,009

				17,593,579


Energy 1.0%
Petroleo Brasileiro S.A.		1,196,437		8,455,385


Food & Staples Retailing 0.2%
Cia Brasileira de Distribuicao Grupo Pao de Acucar		35,400		1,455,194


Food, Beverage & Tobacco 0.9%
Companhia de Bebidas das Americas ADR		210,984		7,338,024


Materials 1.5%
Bradespar S.A.		70,800		734,745
Braskem S.A., A Shares *		70,800		522,691
Gerdau S.A.		225,852		1,629,380
Klabin S.A.		177,000		916,570
Metalurgica Gerdau S.A.		70,800		630,505
Usinas Siderurgicas de Minas Gerais S.A., A Shares *		141,600		614,124
Vale S.A. ADR		545,345		7,078,578

				12,126,593


Retailing 0.1%
Lojas Americanas S.A.		156,674		996,513


Telecommunication Services 0.1%
Telefonica Brasil S.A.		58,348		1,140,844


Utilities 0.3%
AES Tiete S.A.		35,400		299,318
Centrais Eletricas Brasileiras S.A. B Shares		77,119		297,485
Companhia Energetica de Minas Gerais		164,755		1,289,098
Companhia Energetica de Sao Paulo, B Shares		35,400		316,444
Companhia Paranaense de Energia - Copel, B Shares		35,400		425,151

				2,627,496

				51,733,628

Chile 0.1%


Food, Beverage & Tobacco 0.1%
Embotelladora Andina S.A., B Shares		79,650		406,030

Colombia 0.1%


Diversified Financials 0.1%
Grupo Aval Acciones y Valores		219,480		156,399
Grupo de Inversiones Suramericana S.A.		19,824		399,019

				555,418


Materials 0.0%
Grupo Argos S.A.		23,718		267,479

				822,897

Russia 0.0%


Energy 0.0%
AK Transneft OAO		1		2,301

Total Preferred Stock
(Cost $65,137,149)				52,964,856




Rights 0.0% of net assets

China 0.0%


Banks 0.0%
China Merchants Bank *(c)		174,202		39,538

Total Rights
(Cost $—)				39,538



End of Investments

See financial notes 71

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Collateral Invested for Securities on Loan 1.3%
State Street Institutional U.S. Government Money Market Fund 0.00% (e)		10,689,828		10,689,828

Total Collateral Invested for Securities on Loan
(Cost $10,689,828)				10,689,828



End of Collateral Invested for Securities on Loan

At 08/31/13, the tax basis cost of the fund’s investments was $883,616,125 and the unrealized appreciation and depreciation were $52,281,900 and ($126,956,245), respectively, with a net unrealized depreciation of ($74,674,345).


*		Non-income producing security.
(a)		All or a portion of this security is on loan. Securities on loan were valued at $10,370,114.
(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 $70,872 or 0.0% of net assets.
(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 $522,946 or 0.1% of net assets.
(e)		The rate shown is the 7-day yield.


ADR —		American Depositary Receipt
ETF —		Exchange Traded Fund
GDR —		Global Depositary Receipt
NVDR —		Non-Voting Depositary Receipt
Reg’d —		Registered
INR —		Indian rupee

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2013 (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		$578,001,097		$—		$—		$578,001,097
China¹		169,949,943		—		—		169,949,943
Materials		6,026,756		—		242,410		6,269,166
Pakistan¹		—		—		209,664		209,664
Corporate Bonds¹		—		226		—		226
Other Investment Companies¹		1,507,290		—		—		1,507,290
Preferred Stock¹		52,964,856		—		—		52,964,856
Rights¹
China¹		—		—		39,538		39,538

Total		$808,449,942		$226		$491,612		$808,941,780

Other Financial Instruments
Collateral Invested for Securities on Loan		$10,689,828		$—		$—		$10,689,828


¹		As categorized in Portfolio Holdings.

72 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued

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	2012		(Losses)			(Losses)			Purchases		Sales			in		out		2013

Common Stock
China		$—		($85	)		($7,932	)		$122,921		($5,156	)		$132,662		$—		$242,410
Pakistan		—		—			$31,949			—		—			177,715		—		$209,664
Rights
China		—		—			$39,538			—		—			—		—		39,538
Thailand		23,654		—			(23,654	)		—		—			—		—		—

Total		$23,654		($85	)		$39,901			$122,921		($5,156	)		$310,377		$—		$491,612

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 or Level 2 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, 2013.

See financial notes 73

Schwab Emerging Markets Equity ETF

Statement of

Assets and Liabilities

As of August 31, 2013



Assets

Investments, at value (cost $879,005,833) including securities on loan of $10,370,114		$808,941,780
Collateral invested for securities on loan		10,689,828
Cash		115,382
Foreign currency, at value (cost $1,582,232)		1,577,140
Receivables:
Investments sold		374
Dividends		2,354,326
Income from securities on loan		16,714
Foreign tax reclaims		1,557
Interest	+	166

Total assets		823,697,267

Liabilities

Collateral held for securities on loan		10,689,828
Payables:
Investments bought		1,082,550
Investment adviser fees	+	9,749

Total liabilities		11,782,127

Net Assets

Total assets		823,697,267
Total liabilities	−	11,782,127

Net assets		$811,915,140

Net Assets by Source
Capital received from investors		922,175,891
Net investment income not yet distributed		16,348,414
Net realized capital losses		(56,519,098	)
Net unrealized capital losses		(70,090,067	)

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$811,915,140

35,400,000

$22.94

74 See financial notes

Schwab Emerging Markets Equity ETF

Statement of

Operations

For the period September 1, 2012 through August 31, 2013



Investment Income

Dividends (net of foreign withholding tax of $2,571,977)		$20,916,984
Interest (net of foreign withholding tax of $79)		2,354
Securities on loan	+	153,086

Total investment income		21,072,424

Expenses

Investment adviser fees		1,163,340

Total expenses	−	1,163,340

Net investment income		19,909,084

Realized and Unrealized Gains (Losses)

Net realized losses on investments (net of foreign capital gains tax of $4,076)		(36,290,970	)
Net realized gains on in-kind redemptions		1,447,373
Net realized losses on foreign currency transactions	+	(302,121	)

Net realized losses		(35,145,718	)
Net unrealized losses on investments		(24,186,824	)
Net unrealized losses on foreign currency translations	+	(23,580	)

Net unrealized losses	+	(24,210,404	)

Net realized and unrealized losses		(59,356,122	)

Net decrease in net assets resulting from operations		($39,447,038	)

See financial notes 75

Schwab Emerging Markets Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods



Operations


9/1/12-8/31/13				9/1/11-8/31/12
Net investment income		$19,909,084			$14,057,415
Net realized losses		(35,145,718	)		(14,134,817	)
Net unrealized losses	+	(24,210,404	)		(31,226,970	)

Net decrease in net assets resulting from operations		(39,447,038	)		(31,304,372	)

Distributions to Shareholders

Distributions from net investment income		($14,760,500	)		($9,535,681	)

Transactions in Fund Shares

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

14,400,000

$368,497,242

7,800,000

$186,779,297

Shares redeemed

(800,000

)

(17,970,050

)

(1,200,001

)

(27,004,871

)

Net transactions in fund shares

13,600,000

$350,527,192

6,599,999

$159,774,426

Shares Outstanding and Net Assets

9/1/12-8/31/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

21,800,000

$515,595,486

15,200,001

$396,661,113

Total increase

13,600,000

296,319,654

6,599,999

118,934,373

End of period

35,400,000

$811,915,140

21,800,000

$515,595,486

Net investment income not yet distributed

$16,348,414

$11,484,623

76 See financial notes

Schwab International Equity ETFs

Financial Notes

1. Business Structure of the Funds



Schwab Strategic Trust (organized January 27, 2009)		Schwab U.S. REIT ETF
Schwab International Equity ETF		Schwab U.S. TIPS ETF
Schwab International Small-Cap Equity ETF		Schwab Short-Term U.S. Treasury ETF
Schwab Emerging Markets Equity ETF		Schwab Intermediate-Term U.S. Treasury ETF
Schwab U.S. Broad Market ETF		Schwab U.S. Aggregate Bond ETF
Schwab U.S. Large-Cap ETF		Schwab Fundamental U.S. Broad Market Index ETF
Schwab U.S. Large-Cap Growth ETF		Schwab Fundamental U.S. Large Company Index ETF
Schwab U.S. Large-Cap Value ETF		Schwab Fundamental U.S. Small Company Index ETF
Schwab U.S. Mid-Cap ETF		Schwab Fundamental International Large Company Index ETF
Schwab U.S. Small-Cap ETF		Schwab Fundamental International Small Company Index ETF
Schwab U.S. Dividend Equity ETF		Schwab Fundamental Emerging Markets Large Company Index 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: Traded securities are 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

Schwab International Equity ETFs

Financial Notes (continued)

2. Significant Accounting Policies (continued):


		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 activities, recent transactions, 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. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the funds pursuant to the valuation procedures.


	•	Bonds and notes: Bonds and notes are 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 independent bond-pricing services.

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

	•	Underlying funds: Mutual funds are valued at their respective NAVs. Exchange traded funds (ETFs) traded on a recognized securities exchange are valued at the last reported sale price that day or the official closing price, if applicable.

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 and ETFs. Investments in mutual funds are valued daily at their NAVs, and investments in ETFs are valued daily at the last reported sale price or the official closing price, which 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.

Schwab International Equity ETFs

Financial Notes (continued)

2. Significant Accounting Policies (continued):

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, 2013 are disclosed in the Portfolio Holdings.

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


	Non-Cash
	Collateral Received

Schwab International Small-Cap Equity ETF		$234,677

(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 difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or 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:

Schwab International Equity ETFs

Financial Notes (continued)

2. Significant Accounting Policies (continued):

Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.

(e) Expenses:

(f) Distributions to Shareholders:

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

(g) Accounting Estimates:

(h) Federal Income Taxes:

(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 and capital gains on investments. 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, 2013, if any, are reflected in the funds’ Statements of Assets and Liabilities.

(j) Indemnification:

3. Risk Factors:

Schwab International Equity ETFs

Financial Notes (continued)

3. Risk Factors (continued):

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.

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.

Each fund uses statistical sampling techniques, and as a result, a 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. Because each 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.

Schwab International Equity ETFs

Financial Notes (continued)

3. Risk Factors (continued):

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.

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:

CSIM, a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser pursuant to an Advisory Agreement between CSIM and the trust.

For its advisory services to the 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:

Effective September 20, 2012:


		Schwab		Schwab
Schwab		International		Emerging
International		Small-Cap		Markets
Equity ETF		Equity ETF		Equity ETF

	0.09%		0.20%		0.15%

Prior to September 20, 2012, the rate was:


		Schwab		Schwab
Schwab		International		Emerging
International		Small-Cap		Markets
Equity ETF		Equity ETF		Equity ETF

	0.13%		0.35%		0.25%

Certain Schwab funds may own shares of other Schwab Funds. As of August 31, 2013, the percentages of the outstanding shares of the funds owned by other Schwab funds are less than 1%.

Schwab International Equity ETFs

Financial Notes (continued)

4. Affiliates and Affiliated Transactions (continued):

lending facility is subject to the oversight and periodic review of the Board. The funds had no interfund borrowing or lending activity during the period.

5. Other Service Providers:

SEI Investments Distribution Co. is the principal underwriter and distributor of shares of the funds.

6. Board of Trustees:

The Board 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. For information regarding the trustees please refer to Trustees and Officers table at the end of this report.

7. Borrowing from Banks:

8. Purchases and Sales/Maturities of Investment Securities:

For the period ended August 31, 2013, 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		$183,203,567		$98,505,973
Schwab International Small-Cap Equity ETF		57,252,317		45,101,343
Schwab Emerging Markets Equity ETF		231,622,603		107,791,694

9. In-Kind Transactions:

Schwab International Equity ETFs

Financial Notes (continued)

9. In-Kind Transactions (continued):

The in-kind transactions for the period ended August 31, 2013 were as follows:


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

Schwab International Equity ETF		$514,396,148		$11,799,922
Schwab International Small-Cap Equity ETF		99,642,611		18,626,668
Schwab Emerging Markets Equity ETF		242,520,117		11,503,090

10. Federal Income Taxes

As of August 31, 2013, 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		$27,795,469			$5,857,054			$16,576,433
Undistributed long-term capital gains		—			—			—
Unrealized appreciation		158,249,092			38,907,833			52,281,900
Unrealized depreciation		(71,588,341	)		(21,925,842	)		(126,956,245	)
Other unrealized appreciation/(depreciation)		(33,947	)		(6,991	)		(26,014	)

Net unrealized appreciation/(depreciation)		86,626,804			16,975,000			(74,700,359	)

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 the realization for tax purposes of unrealized gains on investments in 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*

23,051,268

11,827,747

18,095,395

Total

$25,397,142

$12,043,292

$19,186,799


*		As a result of the passage of the Regulated Investment Company Modernization Act of 2010, capital losses incurred after December 31, 2010 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 may increase the likelihood that the pre-enactment capital losses may 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.

Schwab International Equity ETFs

Financial Notes (continued)

10. Federal Income Taxes (continued):

Schwab

International

Emerging

International

Small-Cap

Markets

Equity ETF

Deferred capital losses

$12,622,924

$5,004,504

$32,950,026

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		$26,201,560			$6,079,500		$14,760,500
Long-term capital gains		—			—		—

Prior period distributions
Ordinary Income		19,440,541			4,859,831		9,535,681
Long-term capital gains		—			—		—

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 non-U.S. currency gains and losses, short-term capital gains and losses, in-kind transactions, capital losses related to wash sales, unrealized appreciation of certain investments in non-U.S. securities 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.


				Schwab			Schwab
	Schwab			International			Emerging
	International			Small-Cap			Markets
	Equity ETF			Equity ETF			Equity ETF

Capital shares		$3,625,700			$5,142,514			$1,425,505
Undistributed net investment income		(264,992	)		477,220			(284,793	)
Net realized gains and losses		(3,360,708	)		(5,619,734	)		(1,140,712	)

Schwab

International

Emerging

International

Small-Cap

Markets

Equity ETF

$3,707,114

$5,539,748

$1,447,373

Schwab International Equity ETFs

Financial Notes (continued)

10. Federal Income Taxes (continued):

to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended August 31, 2013, the funds did not incur any interest or penalties.

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, 2013, the results of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the four 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 audit 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, 2013 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 17, 2013

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, 2013, and the respective foreign source income on the funds as follows:


	Foreign Tax Credit		Foreign Source Income

Schwab International Equity ETF		$2,635,554		$37,985,307
Schwab International Small-Cap Equity ETF		420,088		7,564,509
Schwab Emerging Markets Equity ETF		2,330,466		23,470,500


Schwab International Equity ETF			$21,932,587
Schwab International Small-Cap Equity ETF			3,954,865
Schwab Emerging Markets Equity ETF			11,161,291

Other Information (unaudited)

Frequency Distribution of Discounts and Premiums

Bid/Offer Midpoint vs. NAV as of August 31, 2013


	Bid/Offer Midpoint Above NAV								Bid/Offer Midpoint Below NAV
	>0-49		50-99		100-199		>200		>0-49		50-99		100-199		>200
	Basis		Basis		Basis		Basis		Basis		Basis		Basis		Basis
	Points		Points		Points		Points		Points		Points		Points		Points

Schwab International Equity ETF
Commencement of trading 11/3/09 through 8/31/13		299		359		110		10		103		51		20		2

Schwab International Small-Cap Equity ETF
Commencement of trading 1/14/10 through 8/31/13		234		359		150		1		93		44		23		5

Schwab Emerging Markets Equity ETF
Commencement of trading 1/14/10 through 8/31/13		225		271		174		14		136		54		27		7

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/Private Investor (January 2009 – present). Consulting Managing Director, PIMCO (investment adviser) (March 2003 – December 2008).	23	Director, PS Business Parks, Inc. (2005 – 2012). Trustee, PIMCO Funds (investment company consisting of 84 portfolios) (1997 – 2008). Trustee, PIMCO Variable Insurance Trust (investment company consisting of 16 portfolios) (2006 – 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).


Stephen Timothy Kochis 1946 Trustee (Trustee of Schwab Strategic Trust since 2012.)	CEO and Owner, Kochis Global (wealth management consulting) (May 2012 – present); Chairman and CEO, Aspiriant (wealth management) (January 2008 – April 2012).	23	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).	23	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. Until October 2008, President and Chief Operating Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation. From 2004 through 2007, Executive Vice President and President, Schwab Investor Services. From 2004 through 2005, Executive Vice President and Chief Operating Officer, Individual Investor Enterprise, and from 2002 through 2004, Executive Vice President, Corporate Services.	99	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).


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).


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).

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 Chief Legal Officer and Secretary (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 Schwab ETF’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.

European Depositary Receipt (EDR) A negotiable security (receipt) that is issued by a European bank, and that represents shares of foreign-based corporations.

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

Global Depositary Receipt (GDR) A negotiable security (receipt) that is issued by a foreign bank, and that represents shares of foreign-based corporations.

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.

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