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

Schwab U.S. Dividend Equity ETF (SCHD) N-CSRSCertified semi-annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-22311

Schwab Strategic Trust – Schwab U.S. REIT ETF and Fundamental Index ETFs

(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) 627-7000

Date of fiscal year end: February 28

Date of reporting period: August 31, 2014

Item 1: Report(s) to Shareholders.

Semiannual report dated August 31, 2014, enclosed.

Schwab U.S. REIT ETF^tm

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This wrapper is not part of the shareholder report.

Schwab U.S. REIT ETF^tm

Semiannual Report

August 31, 2014

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In This Report


Performance at a Glance		2
From the President		3
Fund Management		5
Performance and Fund Facts		6
Fund Expenses		7
Financial Statements and Portfolio Holdings		8
Financial Notes		14
Trustees and Officers		21
Glossary		23

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

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 schedule 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 Returns for the 6 Months Ended August 31, 2014

Schwab U.S. REIT ETF^tm (Ticker Symbol: SCHH)


Market Price Return¹			11.33%
NAV Return¹			11.33%
Dow Jones U.S. Select REIT Index^tm			11.33%
ETF Category: Morningstar Real Estate²			10.07%


Performance Details			page 6

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.

For index definitions, please see the Glossary.

Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.

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 – Dow Jones^® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). The Dow Jones U.S. Select REIT Index is a product of S&P Dow Jones Indices LLC and/or its affiliates, and has been licensed for use by Charles Schwab Investment Management, Inc. The Schwab U.S. REIT ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, or any of their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, nor any of their respective affiliates make any representation regarding the advisability of investing in such product.


¹		ETF performance must be shown based on both a market price and NAV basis. 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. REIT ETF

From the President

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

Dear Shareholder,

I’d like to thank you for trusting us to help you meet your investment goals, and for reading this important report regarding the Schwab U.S. REIT ETF. This fund is part of our line-up of products that is designed to serve as the foundation of an investor’s portfolio, and tracks the Dow Jones U.S. Select REIT Index. The fund also provides the benefits of ETF investing, including transparency, intraday trading, and potential tax efficiency.

For the six-month reporting period ended August 31, 2014, the fund’s returns were in line with the 11.3% total return of the index. U.S. REITs performed well, outperforming the broader U.S. stock market as the low yield environment enhanced the appeal of income-oriented investments such as real estate investment trusts. Generally improving property fundamentals, rising occupancy rates, and rebounding economic growth in the second quarter also supported the performance of U.S. REITs, even as the Federal Reserve reduced its policies aimed at holding down long-term interest rates.

Within this environment, the performance of U.S. REITs varied considerably from one sub-industry to another. Residential REITs were among the better performers, as were Hotel and Resort REITs, with each sub-industry generating returns of more than 15%. Industrial REITs

Asset Class Performance Comparison % returns during the six months ended 8/31/2014

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



		8.84%		S&P 500^® Index: measures U.S. large-cap stocks

		11.33%		Dow Jones U.S. Select REIT Index^TM: measures U.S. real estate investment trusts (REITs)

		1.24%		MSCI EAFE^® Index (Net): measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East

		2.74%		Barclays U.S. Aggregate Bond Index: measures the U.S. bond market

For index definitions, please see the Glossary.

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. REIT ETF 3

From the President continued

For the six-month reporting period ended August 31, 2014, the fund’s returns were in line with the 11.3% total return of the index.

and Specialized REITs generally underperformed by comparison, while still providing positive overall returns.

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

Sincerely,

Indices are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly. Index return figures assume dividends and distributions were reinvested. Past performance is not an indication of future results.

4 Schwab U.S. REIT ETF

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 fund. 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 fund. 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 fund. 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. REIT ETF 5

Schwab U.S. REIT ETF™

Performance and Fund Facts as of 08/31/14

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			3 Years			Since Inception*


Fund: Schwab U.S. REIT ETF^tm (1/13/11)
Market Price Return²		11.33	%		24.44	%		13.85	%	13.31%
NAV Return²		11.33	%		24.22	%		13.80	%	13.32%
Dow Jones U.S. Select REIT Index^tm		11.33	%		24.30	%		13.93	%	13.46%
ETF Category: Morningstar Real Estate³		10.07	%		23.51	%		14.12	%	12.52%

Fund Expense Ratio⁴: 0.07%

Statistics


Number of Holdings			91
Weighted Average Market Cap ($ x 1,000,000)			$16,720
Price/Earnings Ratio (P/E)			63.3
Price/Book Ratio (P/B)			2.5
Portfolio Turnover Rate^5,6			4%

Sector Weightings % of Investments


Specialized REITs			27.6%
Retail REITs			25.8%
Residential REITs			18.9%
Office REITs			15.5%
Diversified REITs			7.0%
Industrial REITs			5.1%
Other			0.1%
Total			100.0%

Top Equity Holdings % of Net Assets⁷


Simon Property Group, Inc.			10.0%
Public Storage			4.8%
Equity Residential			4.2%
Health Care REIT, Inc.			3.9%
ProLogis, Inc.			3.9%
HCP, Inc.			3.8%
Ventas, Inc.			3.7%
AvalonBay Communities, Inc.			3.6%
Boston Properties, Inc.			3.5%
Vornado Realty Trust			3.5%
Total			44.9%

For index definitions, please see the Glossary.

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.

Investing in REITs may pose additional risks such as real estate industry risk, interest rate risk and liquidity risk.

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 trading and management costs incurred by the fund.

Source of Sector Classification: S&P and MSCI.


*		Inception (1/13/11) 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		ETF performance must be shown based on both a market price and NAV basis. The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
⁷		This list is not a recommendation of any security by the investment adviser.

6 Schwab U.S. REIT ETF

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 the 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, 2014 and held through August 31, 2014.

Actual Return line in the table below provides 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 the fund under the heading entitled “Expenses Paid During Period.”

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

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, including any brokerage commissions you may pay when purchasing or selling shares of the fund. Therefore, the hypothetical return line of the table is 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 3/1/14		at 8/31/14		3/1/14–8/31/14

Schwab U.S. REIT ETF^tm
Actual Return		0.07%	$	1,000.00	$	1,113.30	$	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.
²		Expenses for the 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.

Schwab U.S. REIT ETF 7

Schwab U.S. REIT ETF™

Financial Statements

Financial Highlights


	3/1/14–			3/1/13–			3/1/12–			3/1/11–			1/12/11¹–
	8/31/14*			2/28/14			2/28/13			2/29/12			2/28/11


Per-Share Data ($)

Net asset value at beginning of period		33.06			31.96			28.30			27.28			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.59			0.80			0.72			0.65			0.06
Net realized and unrealized gains (losses)		3.12			1.08			3.71			0.98			2.22

Total from investment operations		3.71			1.88			4.43			1.63			2.28
Less distributions:
Distributions from net investment income		(0.37	)		(0.78	)		(0.77	)		(0.61	)		—

Net asset value at end of period		36.40			33.06			31.96			28.30			27.28

Total return (%)		11.33	²		6.08			15.83			6.15			9.12	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Total expenses		0.07	³		0.07			0.10	⁴		0.13			0.13	³
Net investment income (loss)		3.44	³		2.52			2.43			2.50			3.82	³
Portfolio turnover rate⁵		4	²		11			7			5			—	²
Net assets, end of period ($ x 1,000)		1,022,750			790,052			466,567			277,370			69,566

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Effective September 20, 2012, the annual operating expense ratio was reduced. The ratio presented for the period ended 2/28/13 is a blended ratio.

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

8 See financial notes

Schwab U.S. REIT ETF

Portfolio Holdings as of August 31, 2014 (Unaudited)

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

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

Cost

Value

Holdings by Category

($)

.8%

Common Stock

907,425,586

1,020,931,590

.1%

Other Investment Companies

1,252,391

1,259,162

.9%

Total Investments

908,677,977

1,022,190,752

.1%

Other Assets andLiabilities, Net

559,161

100

.0%

Net Assets

1,022,749,913


	Number		Value
Security	of Shares		($)

Common Stock 99.8% of net assets

Diversified REITs 7.0%
Cousins Properties, Inc.		387,780		4,920,928
Duke Realty Corp.		641,242		11,927,101
First Potomac Realty Trust		115,772		1,532,822
Liberty Property Trust		287,721		10,191,078
PS Business Parks, Inc.		39,213		3,197,428
Vornado Realty Trust		339,533		35,946,359
Washington REIT		130,527		3,626,040

				71,341,756

Industrial REITs 5.1%
DCT Industrial Trust, Inc.		630,564		5,012,984
EastGroup Properties, Inc.		61,563		3,991,745
First Industrial Realty Trust, Inc.		191,080		3,477,656
Prologis, Inc.		970,574		39,735,299

				52,217,684

Office REITs 15.5%
Alexandria Real Estate Equities, Inc.		139,577		11,034,958
BioMed Realty Trust, Inc.		375,017		8,419,132
Boston Properties, Inc.		298,134		36,199,430
Brandywine Realty Trust		337,762		5,410,947
Columbia Property Trust, Inc.		236,307		6,066,001
Corporate Office Properties Trust		169,388		4,807,232
Digital Realty Trust, Inc.		260,264		16,982,226
Douglas Emmett, Inc.		256,520		7,328,776
DuPont Fabros Technology, Inc.		127,906		3,601,833
Equity Commonwealth		235,478		6,329,649
Franklin Street Properties Corp.		171,007		2,077,735
Highwoods Properties, Inc.		178,109		7,578,538
Kilroy Realty Corp.		161,880		10,238,910
Mack-Cali Realty Corp.		164,138		3,469,877
Parkway Properties, Inc.		141,819		2,942,744
Piedmont Office Realty Trust, Inc., Class A		300,535		5,857,427
SL Green Realty Corp.		185,460		20,280,051

				158,625,466

Residential REITs 18.9%
American Campus Communities, Inc.		199,451		7,880,309
American Homes 4 Rent, Class A		268,074		4,793,163
Apartment Investment & Management Co., Class A		284,614		9,753,722
Associated Estates Realty Corp.		111,838		2,069,003
AvalonBay Communities, Inc.		237,237		36,558,222
Camden Property Trust		166,352		12,449,783
Education Realty Trust, Inc.		255,148		2,778,562
Equity Lifestyle Properties, Inc.		154,550		7,061,389
Equity Residential		653,788		43,457,288
Essex Property Trust, Inc.		121,606		23,524,681
Home Properties, Inc.		110,738		7,111,594
Mid-America Apartment Communities, Inc.		144,996		10,486,111
Post Properties, Inc.		105,154		5,785,573
Silver Bay Realty Trust Corp.		71,049		1,184,387
Sun Communities, Inc.		74,184		3,978,488
UDR, Inc.		488,940		14,629,085

				193,501,360

Retail REITs 25.7%
Acadia Realty Trust		112,076		3,230,030
Brixmor Property Group, Inc.		141,624		3,352,240
CBL & Associates Properties, Inc.		321,206		6,102,914
Cedar Realty Trust, Inc.		132,295		855,949
DDR Corp.		567,002		10,330,776
Equity One, Inc.		121,595		2,869,642
Federal Realty Investment Trust		131,048		16,352,169
General Growth Properties, Inc.		1,019,715		25,054,397
Glimcher Realty Trust		289,430		3,250,299
Inland Real Estate Corp.		159,247		1,657,761
Kimco Realty Corp.		799,861		18,788,735
Kite Realty Group Trust		157,753		4,057,407
Pennsylvania Real Estate Investment Trust		123,116		2,482,019
Ramco-Gershenson Properties Trust		147,806		2,506,790
Regency Centers Corp.		179,885		10,278,629
Rouse Properties, Inc.		56,802		992,899
Saul Centers, Inc.		26,416		1,316,838
Simon Property Group, Inc.		603,588		102,628,068
Tanger Factory Outlet Centers, Inc.		185,604		6,479,436
Taubman Centers, Inc.		123,241		9,387,267
The Macerich Co.		274,080		17,894,683
Washington Prime Group, Inc.		302,598		5,906,713
Weingarten Realty Investors		218,947		7,492,366

				263,268,027

Specialized REITs 27.6%
Ashford Hospitality Prime, Inc.		31,529		510,455
Ashford Hospitality Trust, Inc.		145,014		1,680,712
CubeSmart		263,760		4,905,936

See financial notes 9

Schwab U.S. REIT ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
DiamondRock Hospitality Co.		386,752		5,151,537
Extra Space Storage, Inc.		215,808		11,373,082
FelCor Lodging Trust, Inc.		222,114		2,296,659
HCP, Inc.		887,689		38,463,564
Health Care REIT, Inc.		593,472		40,106,838
Healthcare Realty Trust, Inc.		179,709		4,485,537
Hersha Hospitality Trust		383,713		2,605,411
Hospitality Properties Trust		289,524		8,520,691
Host Hotels & Resorts, Inc.		1,467,944		33,498,482
LaSalle Hotel Properties		202,882		7,415,337
LTC Properties, Inc.		70,250		2,876,738
Pebblebrook Hotel Trust		125,326		4,855,129
Public Storage		282,037		49,407,242
Senior Housing Properties Trust		396,210		9,243,579
Sovran Self Storage, Inc.		64,068		4,950,534
Strategic Hotels & Resorts, Inc. *		461,716		5,485,186
Sunstone Hotel Investors, Inc.		391,152		5,699,085
Universal Health Realty Income Trust		20,578		908,930
Ventas, Inc.		570,639		37,536,633

				281,977,297

Total Common Stock
(Cost $907,425,586)				1,020,931,590




Other Investment Companies 0.1% of net assets

Equity Fund 0.1%
SPDR Dow Jones REIT ETF		11,600		990,988

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (a)		268,174		268,174

Total Other Investment Companies
(Cost $1,252,391)				1,259,162



End of Investments

At 08/31/14, the tax basis cost of the fund’s investments was $909,898,447 and the unrealized appreciation and depreciation were $114,325,322 and ($2,033,017), respectively, with a net unrealized appreciation of $112,292,305.


*		Non-income producing security.
(a)		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, 2014 (see financial note 2(a) for additional information):

Quoted Prices in

Significant

Active Markets for

Other Significant

Unobservable

Identical Assets

Observable Inputs

Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Total

Common Stock¹

$1,020,931,590

$—

$1,020,931,590

Other Investment Companies¹

1,259,162

—

1,259,162

Total

$1,022,190,752

$—

$1,022,190,752


¹		As categorized in Portfolio Holdings.

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, 2014.

10 See financial notes

Schwab U.S. REIT ETF

Statement of

Assets and Liabilities

As of August 31, 2014; unaudited



Assets

Investments, at value (cost $908,677,977)		$1,022,190,752
Receivables:
Fund shares sold		1,811,559
Dividends	+	566,738

Total assets		1,024,569,049

Liabilities

Payables:
Investments bought		1,807,454
Investment adviser fees	+	11,682

Total liabilities		1,819,136

Net Assets

Total assets		1,024,569,049
Total liabilities	−	1,819,136

Net assets		$1,022,749,913

Net Assets by Source
Capital received from investors		893,299,486
Net investment income not yet distributed		8,036,611
Net realized capital gains		7,901,041
Net unrealized capital appreciation		113,512,775

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$1,022,749,913

28,100,000

$36.40

See financial notes 11

Schwab U.S. REIT ETF

Statement of

Operations

For the period March 1, 2014 through August 31, 2014; unaudited



Investment Income

Dividends		$16,755,436

Expenses

Investment adviser fees		334,565

Total expenses	−	334,565

Net investment income		16,420,871

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(1,076,192	)
Net realized gains on in-kind redemptions		11,323,619
Net realized losses on futures contracts	+	(18,931	)

Net realized gains		10,228,496
Net change in unrealized appreciation (depreciation) on investments	+	73,614,001

Net realized and unrealized gains		83,842,497

Increase in net assets resulting from operations		$100,263,368

12 See financial notes

Schwab U.S. REIT ETF

Statements of

Changes in Net Assets

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



Operations


3/1/14-8/31/14				3/1/13-2/28/14
Net investment income		$16,420,871			$14,363,480
Net realized gains		10,228,496			7,444,305
Net change in unrealized appreciation (depreciation)	+	73,614,001			7,893,159

Increase in net assets resulting from operations		100,263,368			29,700,944

Distributions to Shareholders

Distributions from net investment income		($9,996,570	)		($13,544,625	)

Transactions in Fund Shares

3/1/14-8/31/14

3/1/13-2/28/14

SHARES

VALUE

SHARES

VALUE

Shares sold

5,750,000

$197,001,714

11,200,000

$367,726,254

Shares redeemed

(1,550,000

)

(54,570,603

)

(1,900,001

)

(60,397,404

)

Net transactions in fund shares

4,200,000

$142,431,111

9,299,999

$307,328,850

Shares Outstanding and Net Assets

3/1/14-8/31/14

3/1/13-2/28/14

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

23,900,000

$790,052,004

14,600,001

$466,566,835

Total increase

4,200,000

232,697,909

9,299,999

323,485,169

End of period

28,100,000

$1,022,749,913

23,900,000

$790,052,004

Net investment income not yet distributed

$8,036,611

$1,612,310

See financial notes 13

Schwab U.S. REIT ETF

Financial Notes, unaudited

1. Business Structure of the Fund

Schwab U.S. REIT ETF 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 operational funds in the trust as of the end of the period, including the fund discussed in this report, which is highlighted:



Schwab Strategic Trust (organized January 27, 2009)		Schwab Emerging Markets Equity ETF
Schwab U.S. REIT ETF		Schwab U.S. TIPS ETF
Schwab U.S. Broad Market ETF		Schwab Short-Term U.S. Treasury ETF
Schwab U.S. Large-Cap ETF		Schwab Intermediate-Term U.S. Treasury ETF
Schwab U.S. Large-Cap Growth ETF		Schwab U.S. Aggregate Bond ETF
Schwab U.S. Large-Cap Value ETF		Schwab Fundamental U.S. Broad Market Index ETF
Schwab U.S. Mid-Cap ETF		Schwab Fundamental U.S. Large Company Index ETF
Schwab U.S. Small-Cap ETF		Schwab Fundamental U.S. Small Company Index ETF
Schwab U.S. Dividend Equity 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 fund issues and redeems shares at its 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 fund 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).

The fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, the 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 fund uses in its preparation of financial statements. The fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services - Investment Companies. 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 U.S. Securities and Exchange Commission (“SEC”).

(a) Security Valuation:

Under procedures approved by the fund’s 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 fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

The fund values the securities in its portfolio every business day. The fund uses 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.

Schwab U.S. REIT ETF

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):


	•	Securities for which no quoted value is available: The Board has adopted procedures to fair value the 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. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market 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 the 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 fund pursuant to the valuation procedures.

	•	Futures contracts (“futures”): Futures are valued at their settlement prices as of the close of their exchanges.

	•	Short-term securities (60 days or less to maturity): Short-term securities may be 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 fund discloses the fair value of its 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 fund determines 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, ETFs and futures contracts. Investments in mutual funds are valued daily at their NAV, 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 fund’s 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 fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the fund 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 fund in the absence of market information. Assumptions used by the fund due

Schwab U.S. REIT ETF

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):


		to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s 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 fund’s investments as of August 31, 2014 are disclosed in the Portfolio Holdings.

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

Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. The fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by the fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures are traded publicly on exchanges, and their market value may change daily.

As of August 31, 2014, the fund did not have any open futures contracts.

(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.

When the fund closes out a futures position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.

(d) Real Estate Investment Trusts:

The fund invests in real estate investment trusts (REITs) which report information on the source of their distributions annually. Certain distributions received from REITs during the year, which are known to be a return of capital or realized gains, are recorded as a reduction to the cost of the individual REITs or as realized gains on investments, respectively.

(e) 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 fund records certain foreign security dividends on the day it learns 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.

(f) Expenses:

Pursuant to the Investment Advisory Agreement (“Advisory Agreement”) between Charles Schwab Investment Management, Inc. (“CSIM” or the “investment adviser”) and the trust, the investment adviser will pay the operating expenses of the 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 the fund are charged directly to the fund.

(g) Distributions to Shareholders:

The fund generally makes distributions from net investment income, if any, quarterly and from net realized capital gains, if any, once a year.

(h) Accounting Estimates:

Schwab U.S. REIT ETF

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

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.

(i) Federal Income Taxes:

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

(j) Indemnification:

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

3. Risk Factors:

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

Market Risk. Stock and bond markets and the values of securities held by the fund rise and fall daily. As with any investment whose performance is tied to these markets, the value of an investment in the fund will fluctuate, which means that the investors could lose money.

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

Equity Risk. 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.

Large-Cap Risk. The fund will invest in large-cap segments of the U.S. stock market. 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 — the fund’s large-cap holdings could reduce performance.

Small- and Mid-Cap Risk. REITs and other real estate companies may be small- to medium- sized companies in relation to the equity markets as a whole. Historically, mid- and small-cap stocks have been riskier than large-cap stocks. Mid- and small-cap companies themselves may be more vulnerable to adverse business or economic events than larger, more established companies. Stock prices of smaller companies may be based in substantial part on future expectations rather than current achievements and may move sharply, especially during market upturns and downturns. During a period when mid- and small-cap stocks fall behind other types of investments — bonds or large-cap stocks, for instance — the fund’s small- and mid-cap holdings could reduce performance.

REITs Risk. In addition to the risks associated with investing in securities of real estate companies and real estate related companies, REITs are subject to certain additional risks. Equity REITs may be affected by changes in the value of the underlying properties owned by the trusts. Further, REITs are dependent upon specialized management skills and may have their investments in relatively few properties, or in a small geographic area or a single property type. Failure of a company to qualify as a REIT under federal tax law may have adverse consequences to the fund. In addition, REITs have their own expenses, and the fund will bear a proportionate share of those expenses.

Real Estate Investment Risk. The fund has a policy of concentrating its investments in real estate companies and companies related to the real estate industry. As such, the fund is subject to risks associated with the direct ownership of real estate securities and an investment in the fund will be closely linked to the performance of the real estate markets. These risks include,

Schwab U.S. REIT ETF

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

among others, declines in the value of real estate; risks related to general and local economic conditions; possible lack of availability of mortgage funds or other limits to accessing the credit or capital markets; defaults by borrowers or tenants, particularly during an economic downturn; and changes in interest rates.

Tracking Error Risk. As an index fund, the 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 the 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.

Derivatives Risk. The fund may invest in derivative instruments. The principal types of derivatives the 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. The 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. The 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 the fund to realize higher amounts of short-term capital gain. These risks could cause the fund to lose more than the principal amount invested.

Concentration Risk. To the extent that the fund’s or the index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector or asset class (including the real estate industry, as described above), 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.

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

Securities Lending Risk. 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.

Market Trading Risk. 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.

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

Lack of Government Insurance or Guarantee. An investment in the 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 fund’s prospectus for a more complete description of the principal risks of investing in the fund.

4. Affiliates and Affiliated Transactions:

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

For its advisory services to the fund, CSIM is entitled to receive an annual fee, payable monthly, equal to 0.07% of the fund’s average daily net assets.

Certain Schwab funds may own shares of other Schwab Funds. As of August 31, 2014, the percentage of outstanding shares of the fund owned by other Schwab funds is less than 1.0% for each fund.

Schwab U.S. REIT ETF

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Pursuant to an exemptive order issued by the SEC, the fund 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 fund 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 fund.

State Street Bank and Trust Company (“State Street”) serves as the fund’s transfer agent. As part of these services, the transfer agent maintains records pertaining to the sale, redemption and transfer of the fund’s shares.

State Street also serves as custodian and accountant for the fund. The custodian is responsible for the daily safekeeping of securities and cash held by the fund. The fund’s accountant maintains all books and records related to the fund’s transactions.

6. Board of Trustees:

The Board may include people who are officers and/or directors of CSIM 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 the Trustees and Officers table at the end of this report.

7. Borrowing from Banks:

The fund has access to custodian overdraft facilities and to an uncommitted line of credit of $100 million with State Street. The fund pays interest on the amounts it borrows at rates that are negotiated periodically.

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

8. Derivatives:

The fund entered into equity index futures contracts during the report period. The fund invested in futures to equitize available cash. The fair value and variation margin for futures contracts held at August 31, 2014, if any, are presented on the Portfolio Holdings and Statement of Assets and Liabilities, respectively. The net realized/unrealized gains (losses) on futures contracts are presented on the Statement of Operations. Refer to financial note 2(b) for the fund’s accounting policies with respect to futures contracts and financial note 3 for disclosures concerning the risks of investing in futures contracts. During the period, the month-end average contract values of futures contracts held by the fund was $128,320 and the month-end average number of contracts held was 1.

9. Purchases and Sales/Maturities of Investment Securities:

For the period ended August 31, 2014, purchases and sales/maturities of securities (excluding in-kind transactions and short-term obligations) were as follows:

10. In-Kind Transactions:

The consideration for the purchase of Creation Units of the 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

Schwab U.S. REIT ETF

Financial Notes, unaudited (continued)

10. In-Kind Transactions (continued):

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, CSIM 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, 2014 were as follows:

For the period ended August 31, 2014, the fund realized net capital gains or losses resulting from in-kind redemptions of Creation Units. Because such gains or losses are not taxable to the fund 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 fund’s 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, 2014 are disclosed in the fund’s Statement of Operations.

11. Federal Income Taxes

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of February 28, 2014, the fund had capital loss carryforwards of $876,325 with no expiration*.


*		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 February 28, 2014, the fund had capital losses deferred in the amount of $740,055.

As of February 28, 2014, 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 fund, and has determined that no provision for income tax is required in the fund’s financial statements. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended February 28, 2014, the fund did not incur any interest or penalties.

12. 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.

Trustees and Officers

The tables below give information about the trustees and officers for the Schwab Strategic Trust which includes the fund 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 96 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); Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) and President, PIMCO Funds.	21	Director, PS Business Parks, Inc. (2005 – 2012).


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).	21	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).	21	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.	96	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).


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

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.

Barclays U.S. Aggregate Bond Index A broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid ARM passthroughs), asset-backed securities, and commercial mortgage-backed securities.

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.

Dow Jones U.S. Select REIT Index A float-adjusted market capitalization weighted index comprised of real estate investment trusts (REITs).

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

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

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

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

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

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

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

median market cap The midpoint of the range of market caps of the stocks held by a fund. There are different ways of calculating median market cap. With a simple median, half of the stocks in the fund’s portfolio would be larger than the median, and half would be smaller. With a weighted median (the type that is calculated for this fund), 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. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.

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.

real estate investment trust (REIT) A real estate company that owns and commonly operates income producing commercial and/or residential real estate.

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

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

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

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

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

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

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

Schwab ETFs^tm are designed to be low-cost, diversified investments. The funds follow broad market indices and provide 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.

MFR63740-03

00125307

Semiannual report dated August 31, 2014, enclosed.

Schwab 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

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*	SCHWAB is a registered trademark of Charles Schwab & Co., Inc. FUNDAMENTAL INDEX is a registered trademark of Research Affiliates LLC.

This wrapper is not part of the shareholder report.

Schwab Fundamental Index* ETFs

Semiannual Report

August 31, 2014

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


*	SCHWAB is a registered trademark of Charles Schwab & Co., Inc. FUNDAMENTAL INDEX is a registered trademark of Research Affiliates LLC.

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 Fundamental U.S. Broad Market Index ETF		6
Schwab Fundamental U.S. Large Company Index ETF		7
Schwab Fundamental U.S. Small Company Index ETF		8
Schwab Fundamental International Large Company Index ETF		9
Schwab Fundamental International Small Company Index ETF		11
Schwab Fundamental Emerging Markets Large Company Index ETF		13
Fund Expenses		15
Financial Statements and Portfolio Holdings
Schwab Fundamental U.S. Broad Market Index ETF		16
Schwab Fundamental U.S. Large Company Index ETF		23
Schwab Fundamental U.S. Small Company Index ETF		30
Schwab Fundamental International Large Company Index ETF		37
Schwab Fundamental International Small Company Index ETF		44
Schwab Fundamental Emerging Markets Large Company Index ETF		51
Financial Notes		58
Trustees and Officers		68
Glossary		70

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

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 Returns for the 6 Months Ended August 31, 2014

Schwab Fundamental U.S. Broad Market Index ETF (Ticker Symbol: FNDB)


Market Price Return¹			9.02%
NAV Return¹			8.97%
Russell Fundamental U.S. Index			9.15%
ETF Category: Morningstar Large Value²			9.26%


Performance Details			page 6




Schwab Fundamental U.S. Large Company Index ETF (Ticker Symbol: FNDX)


Market Price Return¹			9.49%
NAV Return¹			9.45%
Russell Fundamental U.S. Large Company Index			9.66%
ETF Category: Morningstar Large Value²			9.26%


Performance Details			page 7




Schwab Fundamental U.S. Small Company Index ETF (Ticker Symbol: FNDA)


Market Price Return¹			3.80%
NAV Return¹			3.95%
Russell Fundamental U.S. Small Company Index			4.09%
ETF Category: Morningstar Small Blend²			1.47%


Performance Details			page 8




Schwab Fundamental International Large Company Index ETF (Ticker Symbol: FNDF)


Market Price Return¹			1.41%
NAV Return¹			1.63%
Russell Fundamental Developed ex-US Large Company Index (Net)*			1.81%
ETF Category: Morningstar Foreign Large Value²			4.78%


Performance Details			pages 9-10




Schwab Fundamental International Small Company Index ETF (Ticker Symbol: FNDC)


Market Price Return¹			1.71%
NAV Return¹			2.13%
Russell Fundamental Developed ex-US Small Company Index (Net)*			2.48%
ETF Category: Morningstar Foreign Small/Mid Blend²			1.18%


Performance Details			pages 11-12




Schwab Fundamental Emerging Markets Large Company Index ETF (Ticker Symbol: FNDE)


Market Price Return¹			15.15%
NAV Return¹			15.05%
Russell Fundamental Emerging Markets Large Company Index (Net)*			15.77%
ETF Category: Morningstar Diversified Emerging Markets²			13.81%


Performance Details			pages 13-14

For index definitions, please see the Glossary.

Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.

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 — each of the names identifying a Russell Fundamental Index is a joint trademark of Russell Investments (“Russell”) and Research Affiliates LLC (“RA”) and is used by the funds under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Index Series. Russell is the owner of the trademarks and copyrights related to the Russell Indexes. Schwab Fundamental Index ETFs are not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the funds.


*		The total returns cited are for the Russell Fundamental Developed ex-U.S. Large Company Index (Net), Russell Fundamental Developed ex-U.S. Small Company Index (Net), and Russell Fundamental Emerging Markets Large Company Index (Net), which are calculated net of foreign withholding taxes.
¹		ETF performance must be shown based on both a market price and NAV basis. 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 Fundamental Index 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,

I’d like to thank you for trusting us to help you meet your investment goals, and for reading this important report regarding the Schwab Fundamental Index ETFs.

In recent years, fundamentally weighted strategies have enjoyed significant asset growth, as investors have embraced the value of alternative strategies. Unlike traditional equity indices that are often weighted by market capitalization, fundamentally weighted indices select and weight stocks by objective non-price measures, such as dividends, cash flow, and sales. By using this weighting methodology, the Schwab Fundamental Index ETFs can serve as effective complements to capitalization-weighted and actively managed investment vehicles, potentially helping shareholders create more attractive risk-adjusted portfolios. These funds also provide the benefits of an ETF, including transparency, intraday trading, and potential tax efficiency.

For the six-month reporting period ended August 31, 2014, the funds generated positive returns that generally tracked their respective indices. Emerging markets provided strong overall returns in U.S. dollar terms, helped by stabilizing economic conditions in select markets, relatively attractive stock valuations, and the continuation of low U.S. interest rates. However, Russian stocks struggled amid political tensions,

Asset Class Performance Comparison % returns during the 6 months ended 8/31/2014

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



		8.84%		S&P 500^® Index: measures U.S. large-cap stocks

		−0.06%		Russell 2000^® Index: measures U.S. small-cap stocks

		1.24%		MSCI EAFE^® Index (Net): measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East

		2.74%		Barclays U.S. Aggregate Bond Index: measures the U.S. bond market

		0.02%		Barclays U.S. Treasury Bills 1-3 Months Index: measures short-term U.S. Treasury obligations

For index definitions, please see the Glossary.

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 Fundamental Index ETFs 3

From the President continued

For the six-month reporting period ended August 31, 2014, the funds generated positive returns that generally tracked their respective indices.

increasing market volatility and reducing returns.¹ U.S. stocks performed well, benefitting from rebounding economic growth and Federal Reserve assurances that short-term interest rates will remain low. Stocks in developed international markets generated modest returns amid slow economic growth in Europe. Reflecting these conditions, the Russell Fundamental Emerging Markets Large Company Index returned 15.8%,² and the Russell Fundamental U.S. Large Company Index returned 9.7%.

In related product news, we are excited to announce the launch of the Schwab Fundamental Global Real Estate Index Fund, which enhances our line-up of fundamentally weighted strategies. More information about this new fund can be found on www.schwabfunds.com, or by contacting us at 1-800-435-4000. For information about the performance, holdings, and portfolio characteristics of the Schwab Fundamental Index ETFs, please continue reading this report, or visit www.schwabetfs.com.

Sincerely,

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

International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.

Risks of investing in REITs are similar to those associated with direct ownership of real estate, such as changes in real estate values and property taxes, interest rates, cash flow of underlying real estate assets, supply and demand, and the management skill and creditworthiness of the issuer.

Charles Schwab Investment Management, Inc. (“CSIM”), is the investment adviser for Schwab’s proprietary funds, and Charles Schwab & Co., Inc., (“Schwab”), the distributor for Schwab Funds, are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.

Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with Charles Schwab & Co., Inc. or its affiliates.


¹		To find out more information, please read “Investments in Russian Securities” in the “News & Events” section on www.schwabetfs.com.”
²		The total return cited for the Russell Fundamental Emerging Markets Large Company Index is net of foreign withholding taxes.

4 Schwab Fundamental Index 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.

		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.

		Jane Qin, Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2013, Ms. Qin worked at The Bank of New York Mellon Corporation, where she spent more than two years as an associate equity portfolio manager, and nearly two years as a performance analyst. Prior to that, Ms. Qin worked at Wells Fargo Fund Management as a mutual fund analyst and at CIGNA Reinsurance in the Variable Annuity Death Benefits (VADBe) Risk Management group as a risk analyst.

Schwab Fundamental Index ETFs 5

Schwab Fundamental U.S. Broad Market Index ETF

Performance and Fund Facts as of 08/31/14

Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab Fundamental U.S. Broad Market Index ETF (8/15/13)
Market Price Return²		9.02	%		24.45	%	19.32%
NAV Return²		8.97	%		24.49	%	19.40%
Russell Fundamental U.S. Index		9.15	%		24.95	%	19.82%
ETF Category: Morningstar Large Value³		9.26	%		22.79	%	19.32%

Fund Expense Ratio⁴: 0.32%

Statistics


Number of Holdings			1,535
Weighted Average Market Cap ($ x 1,000,000)			$108,195
Price/Earnings Ratio (P/E)			18.8
Price/Book Ratio (P/B)			2.3
Portfolio Turnover Rate^5,6			6%

Sector Weightings % of Investments


Energy			15.1%
Information Technology			14.2%
Financials			13.7%
Consumer Discretionary			12.1%
Health Care			11.1%
Industrials			10.8%
Consumer Staples			10.5%
Utilities			4.2%
Materials			4.2%
Telecommunication Services			3.8%
Other			0.3%
Total			100.0%

Top Equity Holdings % of Net Assets⁷


Exxon Mobil Corp.			4.3%
Chevron Corp.			2.3%
Microsoft Corp.			1.9%
AT&T, Inc.			1.9%
ConocoPhillips			1.7%
Verizon Communications, Inc.			1.4%
Hewlett-Packard Co.			1.4%
Intel Corp.			1.4%
The Procter & Gamble Co.			1.3%
International Business Machines Corp.			1.3%
Total			18.9%

For index definitions, please see the Glossary.

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 — “Russell Fundamental U.S. Index” is a joint trademark of Russell Investments (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Index Series. Russell is the owner of the trademarks and copyrights related to the Russell Indexes. Schwab Fundamental U.S. Broad Market Index ETF is not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


*		Inception (8/15/13) 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		ETF performance must be shown based on both a market price and NAV basis. The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
⁷		This list is not a recommendation of any security by the investment adviser.

6 Schwab Fundamental Index ETFs

Schwab Fundamental U.S. Large Company Index ETF

Performance and Fund Facts as of 08/31/14

Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab Fundamental U.S. Large Company Index ETF (8/15/13)
Market Price Return²		9.49	%		24.27	%	19.48%
NAV Return²		9.45	%		24.53	%	19.48%
Russell Fundamental U.S. Large Company Index		9.66	%		24.99	%	19.91%
ETF Category: Morningstar Large Value³		9.26	%		22.79	%	19.32%

Fund Expense Ratio⁴: 0.32%

Statistics


Number of Holdings			634
Weighted Average Market Cap ($ x 1,000,000)			$117,992
Price/Earnings Ratio (P/E)			17.9
Price/Book Ratio (P/B)			2.3
Portfolio Turnover Rate^5,6			6%

Sector Weightings % of Investments


Energy			15.9%
Information Technology			14.1%
Financials			12.9%
Consumer Discretionary			11.8%
Health Care			11.5%
Consumer Staples			11.2%
Industrials			10.0%
Utilities			4.2%
Telecommunication Services			4.1%
Materials			4.0%
Other			0.3%
Total			100.0%

Top Equity Holdings % of Net Assets⁷


Exxon Mobil Corp.			4.7%
Chevron Corp.			2.6%
Microsoft Corp.			2.1%
AT&T, Inc.			2.0%
ConocoPhillips			1.9%
Hewlett-Packard Co.			1.5%
Verizon Communications, Inc.			1.5%
Intel Corp.			1.5%
The Procter & Gamble Co.			1.4%
International Business Machines Corp.			1.4%
Total			20.6%

For index definitions, please see the Glossary.

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 — “Russell Fundamental U.S. Large Company Index” is a joint trademark of Russell Investments (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Index Series. Russell is the owner of the trademarks and copyrights related to the Russell Indexes. Schwab Fundamental U.S. Large Company Index ETF is not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


*		Inception (8/15/13) 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		ETF performance must be shown based on both a market price and NAV basis. The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
⁷		This list is not a recommendation of any security by the investment adviser.

Schwab Fundamental Index ETFs 7

Schwab Fundamental U.S. Small Company Index ETF

Performance and Fund Facts as of 08/31/14

Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab Fundamental U.S. Small Company Index ETF (8/15/13)
Market Price Return²		3.80	%		23.80	%	18.20%
NAV Return²		3.95	%		23.74	%	18.24%
Russell Fundamental U.S. Small Company Index		4.09	%		24.26	%	18.72%
ETF Category: Morningstar Small Blend³		1.47	%		19.44	%	16.59%

Fund Expense Ratio⁴: 0.32%

Statistics


Number of Holdings			903
Weighted Average Market Cap ($ x 1,000,000)			$4,002
Price/Earnings Ratio (P/E)			40.9
Price/Book Ratio (P/B)			2.0
Portfolio Turnover Rate^5,6			15%

Sector Weightings % of Investments


Financials			21.5%
Industrials			19.6%
Information Technology			15.0%
Consumer Discretionary			14.9%
Health Care			6.7%
Materials			6.2%
Energy			6.2%
Utilities			3.8%
Consumer Staples			3.6%
Telecommunication Services			1.0%
Other			1.5%
Total			100.0%

Top Equity Holdings % of Net Assets⁷


ITT Corp.			0.5%
Dean Foods Co.			0.4%
Intercontinental Exchange, Inc.			0.3%
Protective Life Corp.			0.3%
SunEdison, Inc.			0.3%
Whiting Petroleum Corp.			0.3%
AK Steel Holding Corp.			0.3%
Endurance Specialty Holdings Ltd.			0.3%
Popular, Inc.			0.3%
Southwest Airlines Co.			0.3%
Total			3.3%

For index definitions, please see the Glossary.

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.

Investments in smaller companies typically exhibit higher volatility.

Index ownership — “Russell Fundamental U.S. Small Company Index” is a joint trademark of Russell Investments (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Index Series. Russell is the owner of the trademarks and copyrights related to the Russell Indexes. Schwab Fundamental U.S. Small Company Index ETF is not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


*		Inception (8/15/13) 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		ETF performance must be shown based on both a market price and NAV basis. The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
⁷		This list is not a recommendation of any security by the investment adviser.

8 Schwab Fundamental Index ETFs

Schwab Fundamental International Large Company Index ETF

Performance and Fund Facts as of 08/31/14

Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception**


Fund: Schwab Fundamental International Large Company Index ETF (8/15/13)
Market Price Return²		1.41	%		19.59	%	14.35%
NAV Return²		1.63	%		19.91	%	14.02%
Russell Fundamental Developed ex-US Large Company Index (Net)*		1.81	%		20.43	%	14.49%
ETF Category: Morningstar Foreign Large Value³		4.78	%		19.83	%	15.64%

Fund Expense Ratio⁴: 0.32%

For index definitions, please see the Glossary.

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.

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.

Index ownership — “Russell Fundamental Developed ex-U.S. Large Company Index” is a joint trademark of Russell Investments (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Series. Russell is the owner of the trademarks and copyrights related to the Russell Indexes. Schwab Fundamental International Large Company Index ETF is not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.


*		The total return cited is for the Russell Fundamental Developed ex-U.S. Large Company Index (Net), which is calculated net of foreign withholding taxes.
**		Inception (8/15/13) 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		ETF performance must be shown based on both a market price and NAV basis. 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 Fundamental Index ETFs 9

Schwab Fundamental International Large Company Index ETF

Performance and Fund Facts as of 08/31/14 continued

Statistics


Number of Holdings			816
Weighted Average Market Cap ($ x 1,000,000)			$65,392
Price/Earnings Ratio (P/E)			21.4
Price/Book Ratio (P/B)			1.4
Portfolio Turnover Rate^1,2			6%

Sector Weightings % of Investments


Financials			18.4%
Energy			14.4%
Industrials			12.4%
Consumer Discretionary			10.0%
Materials			9.7%
Consumer Staples			9.1%
Telecommunication Services			7.9%
Health Care			6.8%
Utilities			6.1%
Information Technology			4.8%
Other			0.4%
Total			100.0%

Top Equity Holdings % of Net Assets³


BP plc			2.4%
Royal Dutch Shell plc, A Shares			2.2%
Total S.A.			2.0%
Royal Dutch Shell plc, B Shares			1.5%
HSBC Holdings plc			1.4%
Banco Santander S.A.			1.3%
Nestle S.A. – Reg’d			1.2%
Telefonica S.A.			1.1%
Eni S.p.A.			1.1%
AstraZeneca plc			0.9%
Total			15.1%

Country Weightings % of Investments


Japan			20.2%
United Kingdom			17.0%
France			10.7%
Germany			8.6%
Canada			7.1%
Netherlands			6.0%
Switzerland			5.6%
Australia			5.5%
Spain			4.5%
Italy			4.1%
Other Countries			10.7%
Total			100.0%

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Not annualized.
²		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
³		This list is not a recommendation of any security by the investment adviser.

10 Schwab Fundamental Index ETFs

Schwab Fundamental International Small Company Index ETF

Performance and Fund Facts as of 08/31/14

Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception**


Fund: Schwab Fundamental International Small Company Index ETF (8/15/13)
Market Price Return²		1.71	%		18.30	%	13.23%
NAV Return²		2.13	%		18.32	%	12.67%
Russell Fundamental Developed ex-US Small Company Index (Net)*		2.48	%		19.36	%	13.62%
ETF Category: Morningstar Foreign Small/Mid Blend³		1.18	%		19.24	%	15.18%

Fund Expense Ratio⁴: 0.48%

For index definitions, please see the Glossary.

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.

Investments in smaller companies typically exhibit higher volatility.

Index ownership — “Russell Fundamental Developed ex-U.S. Small Company Index” is a joint trademark of Russell Investments (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Index Series. Russell is the owner of the trademarks and copyrights related to the Russell Indexes. Schwab Fundamental International Small Company Index ETF is not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.


*		The total return cited is for the Russell Fundamental Developed ex-U.S. Small Company Index (Net), which is calculated net of foreign withholding taxes.
**		Inception (8/15/13) 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		ETF performance must be shown based on both a market price and NAV basis. 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. Includes expenses of the underlying funds in which the fund invests. The annualized weighted average expense ratio of the underlying funds was 0.02%.

Schwab Fundamental Index ETFs 11

Schwab Fundamental International Small Company Index ETF

Performance and Fund Facts as of 08/31/14 continued

Statistics


Number of Holdings			1,311
Weighted Average Market Cap ($ x 1,000,000)			$3,641
Price/Earnings Ratio (P/E)			25.1
Price/Book Ratio (P/B)			1.4
Portfolio Turnover Rate^1,2			14%

Sector Weightings % of Investments


Industrials			23.9%
Consumer Discretionary			18.3%
Financials			17.4%
Materials			10.7%
Information Technology			8.7%
Consumer Staples			7.5%
Health Care			4.7%
Energy			4.0%
Utilities			1.6%
Telecommunication Services			1.1%
Other			2.1%
Total			100.0%

Top Equity Holdings % of Net Assets³


Celesio AG			0.4%
Bankia S.A.			0.3%
DCC plc			0.3%
Dixons Carphone plc.			0.3%
Alps Electric Co., Ltd.			0.3%
Casio Computer Co., Ltd.			0.3%
Koito Manufacturing Co., Ltd.			0.2%
Hongkong Land Holdings Ltd.			0.2%
NGK Insulators Ltd.			0.2%
Minebea Co., Ltd.			0.2%
Total			2.7%

Country Weightings % of Investments


Japan			36.9%
United Kingdom			12.7%
Canada			8.7%
Australia			5.9%
France			4.3%
Germany			3.7%
Switzerland			3.1%
Hong Kong			2.8%
Italy			2.4%
Spain			2.2%
Other Countries			17.3%
Total			100.0%

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Not annualized.
²		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
³		This list is not a recommendation of any security by the investment adviser.

12 Schwab Fundamental Index ETFs

Schwab Fundamental Emerging Markets Large Company Index ETF

Performance and Fund Facts as of 08/31/14

Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception**


Fund: Schwab Fundamental Emerging Markets Large Company Index ETF (8/15/13)
Market Price Return²		15.15	%		17.97	%	14.61%
NAV Return²		15.05	%		17.64	%	14.39%
Russell Fundamental Emerging Markets Large Company Index (Net)*		15.77	%		18.48	%	15.24%
ETF Category: Morningstar Diversified Emerging Markets³		13.81	%		18.29	%	12.87%

Fund Expense Ratio⁴: 0.47%

For index definitions, please see the Glossary.

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.

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

Index ownership — “Russell Fundamental Emerging Markets Large Company Index” is a joint trademark of Russell Investments (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Index Series. Russell is the owner of the trademarks and copyrights related to the Russell Indexes. Schwab Fundamental Emerging Markets Large Company Index ETF is not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.


*		The total return cited is for the Russell Fundamental Emerging Markets Large Company Index (Net), which is calculated net of foreign withholding taxes.
**		Inception (8/15/13) 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		ETF performance must be shown based on both a market price and NAV basis. 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. Includes expenses of the underlying funds in which the fund invests. The annualized weighted average expense ratio of the underlying funds was 0.01%.

Schwab Fundamental Index ETFs 13

Schwab Fundamental Emerging Markets Large Company Index ETF

Performance and Fund Facts as of 08/31/14 continued

Statistics


Number of Holdings			288
Weighted Average Market Cap ($ x 1,000,000)			$57,842
Price/Earnings Ratio (P/E)			12.4
Price/Book Ratio (P/B)			1.1
Portfolio Turnover Rate^1,2			10%

Sector Weightings % of Investments


Energy			24.6%
Financials			18.0%
Information Technology			15.2%
Materials			11.7%
Telecommunication Services			10.1%
Consumer Discretionary			5.9%
Industrials			5.4%
Utilities			3.8%
Consumer Staples			3.1%
Other			2.2%
Total			100.0%

Top Equity Holdings % of Net Assets³


Gazprom OAO			3.5%
LUKOIL OAO			3.4%
Samsung Electronics Co., Ltd.			3.2%
Petroleo Brasileiro S.A., Preferred Stock			3.1%
China Mobile Ltd.			2.2%
Petroleo Brasileiro S.A.			2.0%
China Construction Bank Corp., H Shares			1.7%
Taiwan Semiconductor Manufacturing Co., Ltd.			1.7%
Hon Hai Precision Industry, Co., Ltd.			1.6%
Itau Unibanco Holding S.A., Preferred Stock			1.6%
Total			24.0%

Country Weightings % of Investments


Republic of Korea			18.1%
Brazil			16.3%
China			14.9%
Taiwan			12.6%
Russia			11.6%
South Africa			7.0%
Mexico			3.5%
India			2.4%
United States			2.2%
Poland			2.1%
Other Countries			9.3%
Total			100.0%

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Not annualized.
²		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
³		This list is not a recommendation of any security by the investment adviser.

14 Schwab Fundamental Index ETFs

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

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, 2014 and held through August 31, 2014.

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 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 3/1/14		at 8/31/14		3/1/14–8/31/14

Schwab Fundamental U.S. Broad Market Index ETF
Actual Return		0.32%	$	1,000.00	$	1,089.70	$	1.69
Hypothetical 5% Return		0.32%	$	1,000.00	$	1,023.59	$	1.63


Schwab Fundamental U.S. Large Company Index ETF
Actual Return		0.32%	$	1,000.00	$	1,094.50	$	1.69
Hypothetical 5% Return		0.32%	$	1,000.00	$	1,023.59	$	1.63


Schwab Fundamental U.S. Small Company Index ETF
Actual Return		0.32%	$	1,000.00	$	1,039.50	$	1.65
Hypothetical 5% Return		0.32%	$	1,000.00	$	1,023.59	$	1.63


Schwab Fundamental International Large Company Index ETF
Actual Return		0.32%	$	1,000.00	$	1,016.30	$	1.63
Hypothetical 5% Return		0.32%	$	1,000.00	$	1,023.59	$	1.63


Schwab Fundamental International Small Company Index ETF
Actual Return		0.46%	$	1,000.00	$	1,021.30	$	2.34
Hypothetical 5% Return		0.46%	$	1,000.00	$	1,022.89	$	2.35


Schwab Fundamental Emerging Markets Large Company Index ETF
Actual Return		0.46%	$	1,000.00	$	1,150.50	$	2.49
Hypothetical 5% Return		0.46%	$	1,000.00	$	1,022.89	$	2.35


¹		Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights. The expenses incurred by the underlying funds in which the funds invest are not included in this ratio.
²		Expenses for each fund are equal to the 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.

Schwab Fundamental Index ETFs 15

Schwab Fundamental U.S. Broad Market Index ETF

Financial Statements

Financial Highlights


	3/1/14–			8/14/13¹–
	8/31/14*			2/28/14


Per-Share Data ($)

Net asset value at beginning of period		27.36			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.24			0.21
Net realized and unrealized gains (losses)		2.21			2.28

Total from investment operations		2.45			2.49
Less distributions:
Distributions from net investment income		(0.24	)		(0.13	)

Net asset value at end of period		29.57			27.36

Total return (%)		8.97	²		9.99	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Total expenses		0.32	³		0.32	³
Net investment income (loss)		2.01	³		2.11	³
Portfolio turnover rate⁴		6	²		5	²
Net assets, end of period ($ x 1,000)		134,546			58,823

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

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

16 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings as of August 31, 2014 (Unaudited)

This section shows the fund’s 50 largest portfolio holdings in unaffiliated issuers, any holdings exceeding 1% of the fund’s net assets as of the report date, and any affiliated issuers. The remaining securities held by the fund are grouped as “Other Securities” in each category. You can request a complete schedule of portfolio holdings as of the report date, free of charge, by calling Schwab ETFs^TM at 1-800-435-4000. This complete schedule, filed on the fund’s Form N-CSR, is also available on the SEC’s website at http://www.sec.gov.

In addition, 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 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	.8%	Common Stock		125,059,017		134,234,854
	0	.3%	Other Investment Companies		414,207		416,289
	0	.0%	Rights		1,852		1,852
	0	.0%	Short-Term Investment		5,000		5,000


	100	.1%	Total Investments		125,480,076		134,657,995
	(0	.1)%	Other Assets and Liabilities, Net				(111,842	)


	100	.0%	Net Assets				134,546,153


	Number		% of Net		Value
Security	of Shares		Assets		($)

Common Stock 99.8% of net assets

Automobiles & Components 1.0%
Other Securities				1.0		1,353,544

Banks 5.4%
Bank of America Corp.		93,515		1.1		1,504,656
Citigroup, Inc.		18,382		0.7		949,430
JPMorgan Chase & Co.		26,299		1.2		1,563,476
Wells Fargo & Co.		23,136		0.9		1,190,116
Other Securities				1.5		2,076,469

				5.4		7,284,147

Capital Goods 7.8%
3M Co.		3,569		0.4		513,936
General Electric Co.		61,744		1.2		1,604,109
United Technologies Corp.		5,836		0.5		630,171
Other Securities				5.7		7,684,632

				7.8		10,432,848

Commercial & Professional Services 1.2%
Other Securities				1.2		1,647,674

Consumer Durables & Apparel 1.1%
Other Securities				1.1		1,527,830

Consumer Services 1.8%
McDonald’s Corp.		7,126		0.5		667,849
Other Securities				1.3		1,706,236

				1.8		2,374,085

Diversified Financials 3.1%
Berkshire Hathaway, Inc., Class B *		6,570		0.7		901,732
The Charles Schwab Corp. (a)		3,583		0.1		102,151
Other Securities				2.3		3,187,511

				3.1		4,191,394

Energy 15.1%
Chevron Corp.		24,297		2.3		3,145,247
ConocoPhillips		28,335		1.7		2,301,369
Exxon Mobil Corp.		57,876		4.3		5,756,347
Occidental Petroleum Corp.		5,518		0.4		572,382
Phillips 66		12,416		0.8		1,080,440
Schlumberger Ltd.		5,557		0.5		609,270
Valero Energy Corp.		12,612		0.5		682,814
Other Securities				4.6		6,118,829

				15.1		20,266,698

Food & Staples Retailing 3.7%
Costco Wholesale Corp.		4,277		0.4		517,859
CVS Caremark Corp.		13,842		0.8		1,099,747
Wal-Mart Stores, Inc.		21,614		1.2		1,631,857
Walgreen Co.		9,132		0.4		552,669
Other Securities				0.9		1,202,797

				3.7		5,004,929

Food, Beverage & Tobacco 4.9%
Altria Group, Inc.		13,654		0.4		588,214
Archer-Daniels-Midland Co.		10,151		0.4		506,129
Mondelez International, Inc., Class A		14,050		0.4		508,469
PepsiCo, Inc.		9,450		0.6		874,030
Philip Morris International, Inc.		10,497		0.7		898,333
The Coca-Cola Co.		17,619		0.5		735,065
Other Securities				1.9		2,461,403

				4.9		6,571,643

Health Care Equipment & Services 5.8%
Abbott Laboratories		12,380		0.4		522,931
UnitedHealth Group, Inc.		10,738		0.7		930,770
WellPoint, Inc.		7,553		0.7		880,000
Other Securities				4.0		5,490,231

				5.8		7,823,932

Household & Personal Products 1.9%
The Procter & Gamble Co.		21,021		1.3		1,747,055
Other Securities				0.6		831,516

				1.9		2,578,571

Insurance 3.4%
The Travelers Cos., Inc.		6,614		0.5		626,412

See financial notes 17

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		% of Net		Value
Security	of Shares		Assets		($)
Other Securities				2.9		3,897,688

				3.4		4,524,100

Materials 4.2%
Other Securities				4.2		5,619,930

Media 3.5%
Comcast Corp., Class A		12,103		0.5		662,397
The Walt Disney Co.		9,153		0.6		822,672
Time Warner, Inc.		9,148		0.5		704,670
Other Securities				1.9		2,525,611

				3.5		4,715,350

Pharmaceuticals, Biotechnology & Life Sciences 5.3%
Amgen, Inc.		4,823		0.5		672,230
Johnson & Johnson		14,770		1.1		1,532,092
Merck & Co., Inc.		14,663		0.7		881,393
Pfizer, Inc.		47,229		1.0		1,388,060
Other Securities				2.0		2,680,941

				5.3		7,154,716

Real Estate 1.8%
Other Securities				1.8		2,426,078

Retailing 4.7%
Lowe’s Cos., Inc.		11,567		0.5		607,383
Target Corp.		9,866		0.4		592,651
The Home Depot, Inc.		8,646		0.6		808,401
Other Securities				3.2		4,283,940

				4.7		6,292,375

Semiconductors & Semiconductor Equipment 2.9%
Intel Corp.		52,871		1.4		1,846,255
Other Securities				1.5		2,001,200

				2.9		3,847,455

Software & Services 6.5%
International Business Machines Corp.		8,827		1.3		1,697,432
Microsoft Corp.		57,057		1.9		2,592,100
Oracle Corp.		14,657		0.5		608,705
Other Securities				2.8		3,850,892

				6.5		8,749,129

Technology Hardware & Equipment 4.8%
Apple, Inc.		11,830		0.9		1,212,575
Cisco Systems, Inc.		36,339		0.7		908,112
Hewlett-Packard Co.		48,636		1.4		1,848,168
Other Securities				1.8		2,547,440

				4.8		6,516,295

Telecommunication Services 3.8%
AT&T, Inc.		71,963		1.9		2,515,826
Verizon Communications, Inc.		37,310		1.4		1,858,784
Other Securities				0.5		754,069

				3.8		5,128,679

Transportation 1.9%
Other Securities				1.9		2,527,587

Utilities 4.2%
Other Securities				4.2		5,675,865

Total Common Stock
(Cost $125,059,017)						134,234,854




Other Investment Companies 0.3% of net assets

Equity Fund 0.0%
Other Securities				0.0		35,931

Money Market Fund 0.0%
Other Securities				0.0		35,440

Securities Lending Collateral 0.3%
Other Securities				0.3		344,918

Total Other Investment Companies
(Cost $414,207)						416,289




Rights 0.0% of net assets

Telecommunication Services 0.0%
Other Securities				0.0		1,852

Total Rights
(Cost $1,852)						1,852



Security	Face Amount		% of Net		Value
Rate, Maturity Date	($)		Assets		($)

Short-Term Investment 0.0% of net assets

U.S. Treasury Obligation 0.0%
Other Securities				0.0		5,000

Total Short-Term Investment
(Cost $5,000)						5,000



End of Investments.

18 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued

At 08/31/14, the tax basis cost of the fund’s investments was $125,481,848 and the unrealized appreciation and depreciation were $9,899,568 and ($723,421), respectively, with a net unrealized appreciation of $9,176,147.

For the following notes, please refer to the complete schedule of portfolio holdings.


*		Non-income producing security.
(a)		Issuer is affiliated with the fund’s adviser.
(b)		Illiquid security. At the period end, the value of these amounted to $1,852 or 0.0% of net assets.
(c)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(d)		The rate shown is the 7-day yield.
(e)		The rate shown is the purchase yield.
(f)		All or a portion of this security is on loan. Securities on loan were valued at $347,866.


CVR —		Contingent Value Rights
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, 2014 (see financial note 2(a) for additional information):


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

Common Stock¹		$134,234,854		$—		$—		$134,234,854
Other Investment Companies¹		416,289		—		—		416,289
Rights¹		—		—		1,852		1,852
Short-Term Investment¹		—		5,000		—		5,000

Total		$134,651,143		$5,000		$1,852		$134,657,995


¹		As categorized in the complete schedule of 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

February 28,

Gains

Appreciation

Gross

Transfers

August 31,

Investments in Securities

2014

(Losses)

(Depreciation)

Purchases

Sales

out

2014

Rights

$—

$1,852

$—

$1,852

Total

$—

$1,852

$—

$1,852

See financial notes 19

Schwab Fundamental U.S. Broad Market Index ETF

Statement of

Assets and Liabilities

As of August 31, 2014; unaudited



Assets

Investments in affiliated issuers, at value (cost $90,875)		$102,151
Investments in unaffiliated issuers, at value (cost $125,044,283) including securities on loan of $347,866		134,210,926
Collateral invested for securities on loan, at value (cost $344,918)	+	344,918

Total investments, at value (cost $125,480,076)		134,657,995
Receivables:
Investments sold		247,209
Dividends		319,556
Income from securities on loan	+	1,088

Total assets		135,225,848

Liabilities

Collateral held for securities on loan		344,918
Payables:
Investments bought		327,725
Investment adviser fees	+	7,052

Total liabilities		679,695

Net Assets

Total assets		135,225,848
Total liabilities	−	679,695

Net assets		$134,546,153

Net Assets by Source
Capital received from investors		124,982,529
Net investment income not yet distributed		395,001
Net realized capital losses		(9,296	)
Net unrealized capital appreciation		9,177,919

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$134,546,153

4,550,001

$29.57

20 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Statement of

Operations

For the period March 1, 2014 through August 31, 2014; unaudited



Investment Income

Dividends received from affiliated issuer		$332
Dividends received from unaffiliated issuers (net of foreign withholding tax of $325)		1,006,558
Securities on loan	+	1,131

Total investment income		1,008,021

Expenses

Investment adviser fees		138,721

Total expenses	−	138,721

Net investment income		869,300

Realized and Unrealized Gains (Losses)

Net realized gains on affiliated issuer		24
Net realized gains on unaffiliated investments		48,816
Net realized gains on futures contracts		2,259
Net realized losses on foreign currency transactions	+	(2	)

Net realized gains		51,097
Net change in unrealized appreciation (depreciation) on affiliated issuer		5,960
Net change in unrealized appreciation (depreciation) on unaffiliated investments	+	6,456,708

Net change in unrealized appreciation (depreciation)	+	6,462,668

Net realized and unrealized gains		6,513,765

Increase in net assets resulting from operations		$7,383,065

See financial notes 21

Schwab Fundamental U.S. Broad Market Index ETF

Statements of

Changes in Net Assets

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



Operations


3/1/14-8/31/14				*8/14/13-2/28/14**
Net investment income		$869,300			$315,003
Net realized gains (losses)		51,097			(61,690	)
Net change in unrealized appreciation (depreciation)	+	6,462,668			2,715,251

Increase in net assets resulting from operations		7,383,065			2,968,564

Distributions to Shareholders

Distributions from net investment income		($646,505	)		($141,500	)

Transactions in Fund Shares

3/1/14-8/31/14

8/14/13*-2/28/14

SHARES

VALUE

SHARES

VALUE

Shares sold

2,400,000

$68,986,210

2,150,001

$55,996,319

Shares redeemed

—

Net transactions in fund shares

2,400,000

$68,986,210

2,150,001

$55,996,319

Shares Outstanding and Net Assets

3/1/14-8/31/14

8/14/13*-2/28/14

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

2,150,001

$58,823,383

—

$—

Total increase

2,400,000

75,722,770

2,150,001

58,823,383

End of period

4,550,001

$134,546,153

2,150,001

$58,823,383

Net investment income not yet distributed

$395,001

$172,206


*		Commencement of operations.

22 See financial notes

Schwab Fundamental U.S. Large Company Index ETF

Financial Statements

Financial Highlights


	3/1/14–			8/14/13¹–
	8/31/14*			2/28/14


Per-Share Data ($)

Net asset value at beginning of period		27.27			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.24			0.21
Net realized and unrealized gains (losses)		2.33			2.18

Total from investment operations		2.57			2.39
Less distributions:
Distributions from net investment income		(0.23	)		(0.12	)

Net asset value at end of period		29.61			27.27

Total return (%)		9.45	²		9.59	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Total expenses		0.32	³		0.32	³
Net investment income (loss)		2.06	³		2.20	³
Portfolio turnover rate⁴		6	²		6	²
Net assets, end of period ($ x 1,000)		158,409			72,259

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

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

See financial notes 23

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings as of August 31, 2014 (Unaudited)


				Cost		Value
Holdings by Category				($)		($)

	99	.7%	Common Stock		145,798,788		158,019,577
	0	.3%	Other Investment Companies		451,241		453,367
	0	.0%	Short-Term Investment		5,000		5,000


	100	.0%	Total Investments		146,255,029		158,477,944
	(0	.0)%	Other Assets and Liabilities, Net				(68,789	)


	100	.0%	Net Assets				158,409,155


	Number		% of Net		Value
Security	of Shares		Assets		($)

Common Stock 99.7% of net assets

Automobiles & Components 1.0%
Other Securities				1.0		1,630,880

Banks 5.5%
Bank of America Corp.		120,624		1.2		1,940,840
Citigroup, Inc.		23,647		0.8		1,221,368
JPMorgan Chase & Co.		33,812		1.3		2,010,123
Wells Fargo & Co.		29,832		1.0		1,534,558
Other Securities				1.2		2,007,283

				5.5		8,714,172

Capital Goods 7.4%
3M Co.		4,655		0.4		670,320
General Electric Co.		79,565		1.3		2,067,099
United Technologies Corp.		7,664		0.5		827,559
Other Securities				5.2		8,173,013

				7.4		11,737,991

Commercial & Professional Services 0.9%
Other Securities				0.9		1,444,740

Consumer Durables & Apparel 1.0%
Other Securities				1.0		1,542,893

Consumer Services 1.6%
McDonald’s Corp.		9,277		0.5		869,440
Other Securities				1.1		1,593,619

				1.6		2,463,059

Diversified Financials 3.1%
Berkshire Hathaway, Inc., Class B *		8,486		0.7		1,164,704
The Charles Schwab Corp. (a)		4,564		0.1		130,120
Other Securities				2.3		3,606,497

				3.1		4,901,321

Energy 15.9%
Chevron Corp.		31,351		2.6		4,058,387
ConocoPhillips		36,487		1.9		2,963,474
Exxon Mobil Corp.		74,543		4.7		7,414,047
Occidental Petroleum Corp.		7,203		0.5		747,167
Phillips 66		16,157		0.9		1,405,982
Schlumberger Ltd.		7,196		0.5		788,969
Valero Energy Corp.		16,196		0.6		876,851
Other Securities				4.2		6,901,874

				15.9		25,156,751

Food & Staples Retailing 4.0%
Costco Wholesale Corp.		5,516		0.4		667,877
CVS Caremark Corp.		17,816		0.9		1,415,481
Wal-Mart Stores, Inc.		27,820		1.3		2,100,410
Walgreen Co.		11,699		0.4		708,023
Other Securities				1.0		1,457,653

				4.0		6,349,444

Food, Beverage & Tobacco 5.1%
Altria Group, Inc.		17,506		0.5		754,158
Archer-Daniels-Midland Co.		13,022		0.4		649,277
Mondelez International, Inc., Class A		17,942		0.4		649,321
PepsiCo, Inc.		12,134		0.7		1,122,274
Philip Morris International, Inc.		13,681		0.7		1,170,820
The Coca-Cola Co.		23,005		0.6		959,769
Other Securities				1.8		2,764,611

				5.1		8,070,230

Health Care Equipment & Services 5.9%
Abbott Laboratories		15,891		0.4		671,236
UnitedHealth Group, Inc.		13,992		0.8		1,212,827
WellPoint, Inc.		9,655		0.7		1,124,904
Other Securities				4.0		6,335,769

				5.9		9,344,736

Household & Personal Products 2.1%
The Procter & Gamble Co.		26,883		1.4		2,234,246
Other Securities				0.7		1,040,068

				2.1		3,274,314

Insurance 3.2%
The Travelers Cos., Inc.		8,530		0.5		807,876
Other Securities				2.7		4,262,277

				3.2		5,070,153

24 See financial notes

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		% of Net		Value
Security	of Shares		Assets		($)

Materials 4.0%
Other Securities				4.0		6,315,072

Media 3.6%
Comcast Corp., Class A		15,622		0.5		854,992
The Walt Disney Co.		11,877		0.7		1,067,505
Time Warner, Inc.		11,775		0.6		907,028
Other Securities				1.8		2,919,578

				3.6		5,749,103

Pharmaceuticals, Biotechnology & Life Sciences 5.6%
Amgen, Inc.		6,238		0.5		869,452
Johnson & Johnson		19,125		1.3		1,983,836
Merck & Co., Inc.		19,046		0.7		1,144,855
Pfizer, Inc.		60,455		1.1		1,776,773
Other Securities				2.0		3,165,636

				5.6		8,940,552

Real Estate 1.1%
Other Securities				1.1		1,803,051

Retailing 4.6%
Lowe’s Cos., Inc.		15,087		0.5		792,218
Target Corp.		12,712		0.5		763,610
The Home Depot, Inc.		11,235		0.7		1,050,472
Other Securities				2.9		4,715,573

				4.6		7,321,873

Semiconductors & Semiconductor Equipment 2.7%
Intel Corp.		67,761		1.5		2,366,214
Other Securities				1.2		1,890,537

				2.7		4,256,751

Software & Services 6.6%
International Business Machines Corp.		11,367		1.4		2,185,874
Microsoft Corp.		73,489		2.1		3,338,605
Oracle Corp.		18,905		0.5		785,125
Other Securities				2.6		4,099,616

				6.6		10,409,220

Technology Hardware & Equipment 4.8%
Apple, Inc.		15,197		1.0		1,557,693
Cisco Systems, Inc.		47,080		0.7		1,176,529
Hewlett-Packard Co.		62,916		1.5		2,390,808
Other Securities				1.6		2,555,571

				4.8		7,680,601

Telecommunication Services 4.1%
AT&T, Inc.		92,662		2.0		3,239,464
Verizon Communications, Inc.		47,936		1.5		2,388,172
Other Securities				0.6		822,830

				4.1		6,450,466

Transportation 1.7%
Other Securities				1.7		2,669,006

Utilities 4.2%
Other Securities				4.2		6,723,198

Total Common Stock
(Cost $145,798,788)						158,019,577




Other Investment Companies 0.3% of net assets

Equity Fund 0.0%
Other Securities				0.0		50,490

Money Market Fund 0.1%
Other Securities				0.1		126,046

Securities Lending Collateral 0.2%
Other Securities				0.2		276,831

Total Other Investment Companies
(Cost $451,241)						453,367



Security	Face Amount		% of Net		Value
Rate, Maturity Date	($)		Assets		($)

Short-Term Investment 0.0% of net assets

U.S. Treasury Obligation 0.0%
Other Securities				0.0		5,000

Total Short-Term Investment
(Cost $5,000)						5,000



End of Investments.

At 08/31/14, the tax basis cost of the fund’s investments was $146,262,822 and the unrealized appreciation and depreciation were $12,959,512 and ($744,390), respectively, with a net unrealized appreciation of $12,215,122.

For the following notes, please refer to the complete schedule of portfolio holdings.


*		Non-income producing security.
(a)		Issuer is affiliated with the fund’s adviser.
(b)		The rate shown is the 7-day yield.
(c)		All or a portion of this security is on loan. Securities on loan were valued at $286,168.
(d)		The rate shown is the purchase yield.


ETF —		Exchange Traded Fund
REIT —		Real Estate Investment Trust

See financial notes 25

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2014 (see financial note 2(a) for additional information):

Quoted Prices in

Significant

Active Markets for

Other Significant

Unobservable

Identical Assets

Observable Inputs

Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Total

Common Stock¹

$158,019,577

$—

$158,019,577

Other Investment Companies¹

453,367

—

453,367

Short-Term Investment¹

—

5,000

—

5,000

Total

$158,472,944

$5,000

$—

$158,477,944


¹		As categorized in the complete schedule of portfolio holdings.

26 See financial notes

Schwab Fundamental U.S. Large Company Index ETF

Statement of

Assets and Liabilities

As of August 31, 2014; unaudited



Assets

Investments in affiliated issuers, at value (cost $113,135)		$130,120
Investments in unaffiliated issuers, at value (cost $145,865,063) including securities on loan of $286,168		158,070,993
Collateral invested for securities on loan, at value (cost $276,831)	+	276,831

Total investments, at value (cost $146,255,029)		158,477,944
Receivables:
Investments sold		280,087
Dividends		410,903
Income from securities on loan	+	743

Total assets		159,169,677

Liabilities

Collateral held for securities on loan		276,831
Payables:
Investments bought		475,387
Investment adviser fees	+	8,304

Total liabilities		760,522

Net Assets

Total assets		159,169,677
Total liabilities	−	760,522

Net assets		$158,409,155

Net Assets by Source
Capital received from investors		145,496,727
Net investment income not yet distributed		530,351
Net realized capital gains		159,162
Net unrealized capital appreciation		12,222,915

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$158,409,155

5,350,001

$29.61

See financial notes 27

Schwab Fundamental U.S. Large Company Index ETF

Statement of

Operations

For the period March 1, 2014 through August 31, 2014; unaudited



Investment Income

Dividends received from affiliated issuer		$485
Dividends received from unaffiliated issuers (net of foreign withholding tax of $353)		1,386,256
Securities on loan	+	778

Total investment income		1,387,519

Expenses

Investment adviser fees		186,842

Total expenses	−	186,842

Net investment income		1,200,677

Realized and Unrealized Gains (Losses)

Net realized gains on affiliated issuer		23
Net realized losses on unaffiliated investments		(26,185	)
Net realized gains on in-kind redemptions		223,524
Net realized gains on futures contracts	+	296

Net realized gains		197,658
Net change in unrealized appreciation (depreciation) on affiliated issuer		9,074
Net change in unrealized appreciation (depreciation) on unaffiliated investments	+	9,255,141

Net change in unrealized appreciation (depreciation)	+	9,264,215

Net realized and unrealized gains		9,461,873

Increase in net assets resulting from operations		$10,662,550

28 See financial notes

Schwab Fundamental U.S. Large Company Index ETF

Statements of

Changes in Net Assets

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



Operations


3/1/14-8/31/14				*8/14/13-2/28/14**
Net investment income		$1,200,677			$400,764
Net realized gains (losses)		197,658			(40,036	)
Net change in unrealized appreciation (depreciation)	+	9,264,215			2,958,700

Increase in net assets resulting from operations		10,662,550			3,319,428

Distributions to Shareholders

Distributions from net investment income		($889,310	)		($180,240	)

Transactions in Fund Shares

3/1/14-8/31/14

8/14/13*-2/28/14

SHARES

VALUE

SHARES

VALUE

Shares sold

2,750,000

$77,831,881

2,650,001

$69,119,382

Shares redeemed

(50,000

)

(1,454,536

)

—

Net transactions in fund shares

2,700,000

$76,377,345

2,650,001

$69,119,382

Shares Outstanding and Net Assets

3/1/14-8/31/14

8/14/13*-2/28/14

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

2,650,001

$72,258,570

—

$—

Total increase

2,700,000

86,150,585

2,650,001

72,258,570

End of period

5,350,001

$158,409,155

2,650,001

$72,258,570

Net investment income not yet distributed

$530,351

$218,984


*		Commencement of operations.

See financial notes 29

Schwab Fundamental U.S. Small Company Index ETF

Financial Statements

Financial Highlights


	3/1/14–			8/14/13¹–
	8/31/14*			2/28/14


Per-Share Data ($)

Net asset value at beginning of period		28.44			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.16			0.12
Net realized and unrealized gains (losses)		0.96			3.41

Total from investment operations		1.12			3.53
Less distributions:
Distributions from net investment income		(0.14	)		(0.09	)

Net asset value at end of period		29.42			28.44

Total return (%)		3.95	²		14.14	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Total expenses		0.32	³		0.32	³
Net investment income (loss)		1.20	³		1.16	³
Portfolio turnover rate⁴		15	²		9	²
Net assets, end of period ($ x 1,000)		91,202			55,465

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

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

30 See financial notes

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings as of August 31, 2014 (Unaudited)


				Cost		Value
Holdings by Category				($)		($)

	99	.7%	Common Stock		86,047,088		90,933,975
	1	.5%	Other Investment Companies		1,386,093		1,387,815
	0	.0%	Rights		14,969		14,969


	101	.2%	Total Investments		87,448,150		92,336,759
	(1	.2)%	Other Assets and Liabilities, Net				(1,134,446	)


	100	.0%	Net Assets				91,202,313


	Number		% of Net		Value
Security	of Shares		Assets		($)

Common Stock 99.7% of net assets

Automobiles & Components 0.8%
Other Securities				0.8		711,600

Banks 4.4%
Popular, Inc. *		8,852		0.3		274,058
Other Securities				4.1		3,759,856

				4.4		4,033,914

Capital Goods 11.4%
Carlisle Cos., Inc.		2,708		0.2		224,493
GATX Corp.		3,567		0.3		236,385
Huntington Ingalls Industries, Inc.		2,180		0.2		222,600
ITT Corp.		9,777		0.5		467,927
Lennox International, Inc.		2,906		0.3		243,407
Spirit AeroSystems Holdings, Inc., Class A *		6,474		0.3		248,278
Terex Corp.		6,936		0.3		259,476
Other Securities				9.3		8,511,298

				11.4		10,413,864

Commercial & Professional Services 4.6%
United Stationers, Inc.		5,351		0.2		217,518
Other Securities				4.4		3,978,697

				4.6		4,196,215

Consumer Durables & Apparel 2.9%
Hanesbrands, Inc.		2,320		0.3		238,218
Other Securities				2.6		2,383,978

				2.9		2,622,196

Consumer Services 4.1%
Other Securities				4.1		3,716,337

Diversified Financials 3.3%
Eaton Vance Corp.		5,549		0.2		217,299
Federated Investors, Inc., Class B		7,531		0.3		231,126
Intercontinental Exchange, Inc.		1,586		0.3		299,754
SEI Investments Co.		5,945		0.2		225,286
Other Securities				2.3		2,028,466

				3.3		3,001,931

Energy 6.3%
Exterran Holdings, Inc.		4,888		0.2		227,927
McDermott International, Inc. *		35,345		0.3		254,484
Superior Energy Services, Inc.		6,568		0.3		235,397
Whiting Petroleum Corp. *		3,039		0.3		281,594
Other Securities				5.2		4,699,401

				6.3		5,698,803

Food & Staples Retailing 0.7%
The Pantry, Inc. *		10,702		0.2		226,561
Other Securities				0.5		423,265

				0.7		649,826

Food, Beverage & Tobacco 2.7%
Dean Foods Co.		22,594		0.4		365,571
Other Securities				2.3		2,063,223

				2.7		2,428,794

Health Care Equipment & Services 4.9%
Centene Corp. *		2,840		0.2		221,889
Other Securities				4.7		4,281,941

				4.9		4,503,830

Household & Personal Products 0.2%
Other Securities				0.2		214,628

Insurance 5.1%
Allied World Assurance Co. Holdings AG		6,758		0.3		249,978
Aspen Insurance Holdings Ltd.		5,219		0.2		221,912
CNO Financial Group, Inc.		12,684		0.2		226,409
Endurance Specialty Holdings Ltd.		4,756		0.3		276,181
Platinum Underwriters Holdings Ltd.		3,633		0.2		226,954
Primerica, Inc.		4,624		0.3		232,726
Protective Life Corp.		4,278		0.3		296,893
Other Securities				3.3		2,949,686

				5.1		4,680,739

Materials 6.3%
AK Steel Holding Corp. *		25,699		0.3		280,633
Cabot Corp.		3,963		0.2		217,093
Cytec Industries, Inc.		2,378		0.3		245,029
Martin Marietta Materials, Inc.		1,981		0.3		259,432

See financial notes 31

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		% of Net		Value
Security	of Shares		Assets		($)
Resolute Forest Products, Inc. *		13,516		0.3		232,340
Other Securities				4.9		4,498,249

				6.3		5,732,776

Media 2.2%
Dex Media, Inc. *(d)		23,321		0.3		266,093
Other Securities				1.9		1,728,551

				2.2		1,994,644

Pharmaceuticals, Biotechnology & Life Sciences 1.8%
Other Securities				1.8		1,671,900

Real Estate 8.9%
Corrections Corp. of America		6,078		0.2		216,620
Duke Realty Corp.		12,393		0.3		230,510
Essex Property Trust, Inc.		1,123		0.2		217,244
Jones Lang LaSalle, Inc.		1,849		0.3		247,045
Other Securities				7.9		7,231,895

				8.9		8,143,314

Retailing 5.2%
Office Depot, Inc. *		47,567		0.3		243,543
The Men’s Wearhouse, Inc.		4,492		0.3		242,703
Other Securities				4.6		4,287,050

				5.2		4,773,296

Semiconductors & Semiconductor Equipment 4.6%
Atmel Corp. *		24,680		0.2		218,665
First Solar, Inc. *		3,171		0.2		220,955
SunEdison, Inc. *		12,882		0.3		283,791
Other Securities				3.9		3,478,262

				4.6		4,201,673

Software & Services 5.7%
DST Systems, Inc.		2,576		0.3		239,079
VeriSign, Inc. *		3,794		0.2		216,543
Other Securities				5.2		4,767,410

				5.7		5,223,032

Technology Hardware & Equipment 4.8%
Sanmina Corp. *		10,041		0.3		235,763
Zebra Technologies Corp., Class A *		2,774		0.2		216,455
Other Securities				4.3		3,958,914

				4.8		4,411,132

Telecommunication Services 1.0%
Other Securities				1.0		894,329

Transportation 3.9%
Con-way, Inc.		4,637		0.3		237,646
Southwest Airlines Co.		8,390		0.3		268,564
Other Securities				3.3		2,997,526

				3.9		3,503,736

Utilities 3.9%
Questar Corp.		11,231		0.3		264,041
Other Securities				3.6		3,247,425

				3.9		3,511,466

Total Common Stock
(Cost $86,047,088)						90,933,975




Other Investment Companies 1.5% of net assets

Equity Fund 0.1%
Other Securities				0.1		69,936

Money Market Fund 0.1%
Other Securities				0.1		89,027

Securities Lending Collateral 1.3%
Other Securities				1.3		1,228,852

Total Other Investment Companies
(Cost $1,386,093)						1,387,815




Rights 0.0% of net assets

Telecommunication Services 0.0%
Other Securities				0.0		14,969

Total Rights
(Cost $14,969)						14,969



End of Investments.

At 08/31/14, the tax basis cost of the fund’s investments was $87,455,253 and the unrealized appreciation and depreciation were $7,529,962 and ($2,648,456), respectively, with a net unrealized appreciation of $4,881,506.

For the following notes, please refer to the complete schedule of portfolio holdings.


*		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 $14,969 or 0.0% of net assets.
(c)		The rate shown is the 7-day yield.
(d)		All or a portion of this security is on loan. Securities on loan were valued at $1,206,881.


ETF —		Exchange Traded Fund
REIT —		Real Estate Investment Trust

32 See financial notes

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2014 (see financial note 2(a) for additional information):

Quoted Prices in

Significant

Active Markets for

Other Significant

Unobservable

Identical Assets

Observable Inputs

Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Total

Common Stock¹

$90,933,975

$—

$90,933,975

Other Investment Companies¹

1,387,815

—

1,387,815

Rights¹

—

14,969

Total

$92,321,790

$—

$14,969

$92,336,759


¹		As categorized in the complete schedule of 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

February 28,

Gains

Appreciation

Gross

Transfers

August 31,

Investments in Securities

2014

(Losses)

(Depreciation)

Purchases

Sales

out

2014

Rights

$—

$��

$14,969

$—

$14,969

Total

$—

$14,969

$—

$14,969

See financial notes 33

Schwab Fundamental U.S. Small Company Index ETF

Statement of

Assets and Liabilities

As of August 31, 2014; unaudited



Assets

Investments, at value (cost $86,219,298) including securities on loan of $1,206,881		$91,107,907
Collateral invested for securities on loan, at value (cost $1,228,852)	+	1,228,852

Total investments, at value (cost $87,448,150)		92,336,759
Receivables:
Investments sold		1,073
Dividends		93,385
Income from securities on loan	+	4,726

Total assets		92,435,943

Liabilities

Collateral held for securities on loan		1,228,852
Payables:
Investment adviser fees	+	4,778

Total liabilities		1,233,630

Net Assets

Total assets		92,435,943
Total liabilities	−	1,233,630

Net assets		$91,202,313

Net Assets by Source
Capital received from investors		85,295,144
Net investment income not yet distributed		139,812
Net realized capital gains		878,747
Net unrealized capital appreciation		4,888,610

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$91,202,313

3,100,001

$29.42

34 See financial notes

Schwab Fundamental U.S. Small Company Index ETF

Statement of

Operations

For the period March 1, 2014 through August 31, 2014; unaudited



Investment Income

Dividends (net of foreign withholding tax of $801)		$579,249
Securities on loan	+	5,044

Total investment income		584,293

Expenses

Investment adviser fees		122,802

Total expenses	−	122,802

Net investment income		461,491

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(270,954	)
Net realized gains on in-kind redemptions		1,197,593
Net realized losses on futures contracts		(226	)
Net realized losses on foreign currency transactions	+	(17	)

Net realized gains		926,396
Net change in unrealized appreciation (depreciation) on investments		1,528,456
Net change in unrealized appreciation (depreciation) on futures contracts		(1,018	)
Net change in unrealized appreciation (depreciation) on foreign currency translations	+	1

Net change in unrealized appreciation (depreciation)	+	1,527,439

Net realized and unrealized gains		2,453,835

Increase in net assets resulting from operations		$2,915,326

See financial notes 35

Schwab Fundamental U.S. Small Company Index ETF

Statements of

Changes in Net Assets

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



Operations


3/1/14-8/31/14				*8/14/13-2/28/14**
Net investment income		$461,491			$155,554
Net realized gains (losses)		926,396			(49,772	)
Net change in unrealized appreciation (depreciation)	+	1,527,439			3,361,171

Increase in net assets resulting from operations		2,915,326			3,466,953

Distributions to Shareholders

Distributions from net investment income		($379,460	)		($95,650	)

Transactions in Fund Shares

3/1/14-8/31/14

8/14/13*-2/28/14

SHARES

VALUE

SHARES

VALUE

Shares sold

1,550,000

$44,885,652

1,950,001

$52,093,700

Shares redeemed

(400,000

)

(11,684,208

)

—

Net transactions in fund shares

1,150,000

$33,201,444

1,950,001

$52,093,700

Shares Outstanding and Net Assets

3/1/14-8/31/14

8/14/13*-2/28/14

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

1,950,001

$55,465,003

—

$—

Total increase

1,150,000

35,737,310

1,950,001

55,465,003

End of period

3,100,001

$91,202,313

1,950,001

$55,465,003

Net investment income not yet distributed

$139,812

$57,781


*		Commencement of operations.

36 See financial notes

Schwab Fundamental International Large Company Index ETF

Financial Statements

Financial Highlights


	3/1/14–			8/14/13¹–
	8/31/14*			2/28/14


Per-Share Data ($)

Net asset value at beginning of period		28.26			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.28			0.36
Net realized and unrealized gains (losses)		0.18			3.04

Total from investment operations		0.46			3.40
Less distributions:
Distributions from net investment income		—			(0.14	)

Net asset value at end of period		28.72			28.26

Total return (%)		1.63	²		13.60	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Total expenses		0.32	³		0.32	³
Net investment income (loss)		3.72	³		4.00	³
Portfolio turnover rate⁴		6	²		8	²
Net assets, end of period ($ x 1,000)		134,983			62,164

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

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

See financial notes 37

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings as of August 31, 2014 (Unaudited)


				Cost		Value
Holdings by Category				($)		($)

	99	.2%	Common Stock		131,749,328		133,951,148
	0	.4%	Other Investment Companies		571,790		573,574
	0	.4%	Preferred Stock		562,673		516,572
	0	.0%	Rights		—		2,307


	100	.0%	Total Investments		132,883,791		135,043,601
	(0	.0)%	Other Assets and Liabilities, Net				(60,502	)


	100	.0%	Net Assets				134,983,099


	Number		% of Net		Value
Security	of Shares		Assets		($)

Common Stock 99.2% of net assets

Australia 5.5%
BHP Billiton Ltd.		29,281		0.7		1,004,263
Commonwealth Bank of Australia		7,520		0.4		571,961
National Australia Bank Ltd.		15,463		0.4		509,081
Westpac Banking Corp.		15,416		0.4		505,227
Other Securities				3.6		4,800,564

				5.5		7,391,096

Austria 0.3%
Other Securities				0.3		457,654

Belgium 0.9%
Other Securities				0.9		1,213,558

Canada 7.1%
Royal Bank of Canada		7,943		0.4		591,432
Other Securities				6.7		9,061,944

				7.1		9,653,376

Denmark 0.9%
Other Securities				0.9		1,171,295

Finland 1.2%
Nokia Oyj		75,905		0.5		639,386
Other Securities				0.7		953,893

				1.2		1,593,279

France 10.7%
BNP Paribas S.A.		10,387		0.5		702,969
GDF Suez		29,140		0.5		719,493
Orange S.A.		81,686		0.9		1,239,515
Sanofi		9,729		0.8		1,070,056
Total S.A.		41,125		2.0		2,718,785
Vivendi S.A. *		24,534		0.5		639,699
Other Securities				5.5		7,306,682

				10.7		14,397,199

Germany 8.2%
Allianz SE - Reg’d		4,371		0.6		747,321
BASF SE		10,340		0.8		1,066,298
Bayer AG - Reg’d		5,123		0.5		688,635
Daimler AG - Reg’d		11,186		0.7		917,057
Deutsche Telekom AG - Reg’d		60,489		0.7		906,714
E.ON SE		55,319		0.7		1,007,740
RWE AG		14,194		0.4		556,777
Siemens AG - Reg’d		7,426		0.7		932,571
Other Securities				3.1		4,207,598

				8.2		11,030,711

Hong Kong 1.1%
Other Securities				1.1		1,469,066

Ireland 0.6%
Other Securities				0.6		801,869

Israel 0.4%
Other Securities				0.4		491,052

Italy 4.1%
Enel S.p.A.		163,654		0.6		867,865
Eni S.p.A.		57,293		1.1		1,432,351
Intesa Sanpaolo S.p.A.		198,340		0.4		591,478
UniCredit S.p.A.		87,420		0.5		678,232
Other Securities				1.5		2,032,917

				4.1		5,602,843

Japan 20.2%
Canon, Inc.		18,800		0.5		615,115
Hitachi Ltd.		67,000		0.4		507,248
Honda Motor Co., Ltd.		18,800		0.5		635,745
Nippon Telegraph & Telephone Corp.		10,100		0.5		678,616
Toyota Motor Corp.		18,800		0.8		1,072,786
Other Securities				17.5		23,823,577

				20.2		27,333,087

Luxembourg 0.6%
ArcelorMittal		35,955		0.4		524,511
Other Securities				0.2		295,477

				0.6		819,988

38 See financial notes

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		% of Net		Value
Security	of Shares		Assets		($)

Netherlands 6.0%
Royal Dutch Shell plc, A Shares		73,367		2.2		2,970,201
Royal Dutch Shell plc, B Shares		47,799		1.5		2,020,672
Other Securities				2.3		3,088,130

				6.0		8,079,003

New Zealand 0.1%
Other Securities				0.1		168,011

Norway 1.0%
Statoil A.S.A.		21,855		0.5		615,614
Other Securities				0.5		694,600

				1.0		1,310,214

Portugal 0.2%
Other Securities				0.2		300,029

Singapore 0.8%
Other Securities				0.8		1,082,445

Spain 4.5%
Banco Bilbao Vizcaya Argentaria S.A.		64,672		0.6		784,563
Banco Santander S.A.		182,241		1.3		1,821,963
Telefonica S.A.		92,308		1.1		1,467,569
Other Securities				1.5		2,041,371

				4.5		6,115,466

Sweden 2.2%
Other Securities				2.2		2,980,909

Switzerland 5.6%
Nestle S.A. - Reg’d		20,163		1.2		1,568,612
Novartis AG - Reg’d		12,784		0.9		1,149,492
Roche Holding AG		2,867		0.6		838,015
Other Securities				2.9		3,938,701

				5.6		7,494,820

United Kingdom 17.0%
Anglo American plc		26,837		0.5		681,914
AstraZeneca plc		16,873		0.9		1,279,756
Barclays plc		164,500		0.5		613,182
BHP Billiton plc		16,544		0.4		524,094
BP plc		397,761		2.4		3,181,689
British American Tobacco plc		12,314		0.5		726,707
GlaxoSmithKline plc		45,590		0.8		1,116,396
HSBC Holdings plc		170,281		1.4		1,843,817
Rio Tinto plc		11,797		0.5		629,584
Tesco plc		136,300		0.4		520,515
Vodafone Group plc		355,038		0.9		1,219,058
Other Securities				7.8		10,657,466

				17.0		22,994,178

Total Common Stock
(Cost $131,749,328)						133,951,148




Other Investment Companies 0.4% of net assets

United States 0.4%
Equity Fund 0.1%
Other Securities				0.1		100,065

Securities Lending Collateral 0.3%
Other Securities				0.3		473,509

Total Other Investment Companies
(Cost $571,790)						573,574




Preferred Stock 0.4% of net assets

Germany 0.4%
Other Securities				0.4		516,572

Total Preferred Stock
(Cost $562,673)						516,572




Rights 0.0% of net assets

Singapore 0.0%
Other Securities				0.0		2,307

Total Rights
(Cost $—)						2,307



End of Investments.

At 08/31/14, the tax basis cost of the fund’s investments was $132,890,776 and the unrealized appreciation and depreciation were $5,810,068 and ($3,657,243), respectively, with a net unrealized appreciation of $2,152,825.

For the following notes, please refer to the complete schedule of portfolio holdings.


*		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 $2,307 or 0.0% of net assets.
(c)		The rate shown is the 7-day yield.
(d)		All or a portion of this security is on loan. Securities on loan were valued at $478,698.


CDI —		CHESS Depositary Interest
CVA —		Dutch Certificate
ETF —		Exchange Traded Fund
Reg’d —		Registered
REIT —		Real Estate Investment Trust
RSP —		Risparmio (Convertible Savings Shares)

See financial notes 39

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2014 (see financial note 2(a) for additional information):


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

Common Stock¹		$133,951,148		$—		$—		$133,951,148
Other Investment Companies¹		573,574		—		—		573,574
Preferred Stock¹		516,572		—		—		516,572
Rights¹
Singapore¹		—		—		2,307		2,307

Total		$135,041,294		$—		$2,307		$135,043,601


¹		As categorized in the complete schedule of 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

February 28,

Gains

Appreciation

Gross

Transfers

August 31,

Investments in Securities

2014

(Losses)

(Depreciation)

Purchases

Sales

out

2014

Rights

Singapore

$—

$2,307

$—

$2,307

Total

$—

$2,307

$—

$2,307

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, 2014 was $2,307.

40 See financial notes

Schwab Fundamental International Large Company Index ETF

Statement of

Assets and Liabilities

As of August 31, 2014; unaudited



Assets

Investments, at value (cost $132,410,282) including securities on loan of $478,698		$134,570,092
Collateral invested for securities on loan, at value (cost $473,509)	+	473,509

Total investments, at value (cost $132,883,791)		135,043,601
Foreign currency, at value (cost $130,267)		130,152
Receivables:
Fund shares sold		11,549,175
Dividends		314,811
Foreign tax reclaims		39,885
Income from securities on loan	+	526

Total assets		147,078,150

Liabilities

Collateral held for securities on loan		473,509
Payables:
Investments bought		11,557,089
Investment adviser fees		6,801
Due to custodian	+	57,652

Total liabilities		12,095,051

Net Assets

Total assets		147,078,150
Total liabilities	−	12,095,051

Net assets		$134,983,099

Net Assets by Source
Capital received from investors		130,657,138
Net investment income not yet distributed		2,336,110
Net realized capital losses		(167,155	)
Net unrealized capital appreciation		2,157,006

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$134,983,099

4,700,001

$28.72

See financial notes 41

Schwab Fundamental International Large Company Index ETF

Statement of

Operations

For the period March 1, 2014 through August 31, 2014; unaudited



Investment Income

Dividends (net of foreign withholding tax of $191,127)		$2,008,202
Securities on loan	+	526

Total investment income		2,008,728

Expenses

Investment adviser fees		159,031

Total expenses	−	159,031

Net investment income		1,849,697

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(126,539	)
Net realized gains on foreign currency transactions	+	1,154

Net realized losses		(125,385	)
Net change in unrealized appreciation (depreciation) on investments		(620,431	)
Net change in unrealized appreciation (depreciation) on foreign currency translations	+	(4,003	)

Net change in unrealized appreciation (depreciation)	+	(624,434	)

Net realized and unrealized losses		(749,819	)

Increase in net assets resulting from operations		$1,099,878

42 See financial notes

Schwab Fundamental International Large Company Index ETF

Statements of

Changes in Net Assets

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



Operations


3/1/14-8/31/14				*8/14/13-2/28/14**
Net investment income		$1,849,697			$677,200
Net realized losses		(125,385	)		(43,417	)
Net change in unrealized appreciation (depreciation)	+	(624,434	)		2,781,440

Increase in net assets resulting from operations		1,099,878			3,415,223

Distributions to Shareholders

Distributions from net investment income		$—			($189,140	)

Transactions in Fund Shares

3/1/14-8/31/14

8/14/13*-2/28/14

SHARES

VALUE

SHARES

VALUE

Shares sold

2,500,000

$71,718,948

2,200,001

$58,938,190

Shares redeemed

—

Net transactions in fund shares

2,500,000

$71,718,948

2,200,001

$58,938,190

Shares Outstanding and Net Assets

3/1/14-8/31/14

8/14/13*-2/28/14

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

2,200,001

$62,164,273

—

$—

Total increase

2,500,000

72,818,826

2,200,001

62,164,273

End of period

4,700,001

$134,983,099

2,200,001

$62,164,273

Net investment income not yet distributed

$2,336,110

$486,413


*		Commencement of operations.

See financial notes 43

Schwab Fundamental International Small Company Index ETF

Financial Statements

Financial Highlights


	3/1/14–			8/14/13¹–
	8/31/14*			2/28/14


Per-Share Data ($)

Net asset value at beginning of period		27.75			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.29			0.15
Net realized and unrealized gains (losses)		0.30			2.78

Total from investment operations		0.59			2.93
Less distributions:
Distributions from net investment income		—			(0.18	)

Net asset value at end of period		28.34			27.75

Total return (%)		2.13	²		11.73	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Total expenses		0.46	³		0.46	³
Net investment income (loss)		2.29	³		1.09	³
Portfolio turnover rate⁴		14	²		18	²
Net assets, end of period ($ x 1,000)		36,847			24,977

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

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

44 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings as of August 31, 2014 (Unaudited)


				Cost		Value
Holdings by Category				($)		($)

	99	.3%	Common Stock		35,153,834		36,598,367
	2	.2%	Other Investment Companies		784,332		785,645
	0	.4%	Preferred Stock		160,752		149,003


	101	.9%	Total Investments		36,098,918		37,533,015
	(1	.9)%	Other Assets and Liabilities, Net				(686,416	)


	100	.0%	Net Assets				36,846,599


	Number		% of Net		Value
Security	of Shares		Assets		($)

Common Stock 99.3% of net assets

Australia 6.0%
CSR Ltd.		23,244		0.2		76,090
Dexus Property Group		66,676		0.2		75,146
Sigma Pharmaceuticals Ltd.		93,600		0.2		72,224
Sydney Airport		19,240		0.2		79,718
Transfield Services Ltd. *		42,364		0.2		69,340
Other Securities				5.0		1,832,357

				6.0		2,204,875

Austria 0.7%
Other Securities				0.7		247,618

Belgium 1.3%
Mobistar S.A. *		3,536		0.2		70,074
Other Securities				1.1		405,246

				1.3		475,320

Canada 8.9%
Methanex Corp.		1,162		0.2		77,877
Precision Drilling Corp.		5,395		0.2		68,933
Russel Metals, Inc. (b)		2,030		0.2		68,269
Other Securities				8.3		3,062,335

				8.9		3,277,414

Denmark 1.3%
Other Securities				1.3		490,806

Finland 1.4%
Other Securities				1.4		497,603

France 4.4%
Other Securities				4.4		1,620,853

Germany 3.5%
Celesio AG		4,147		0.4		141,204
Other Securities				3.1		1,148,755

				3.5		1,289,959

Hong Kong 2.8%
Hang Lung Group Ltd.		13,000		0.2		72,631
Hongkong Land Holdings Ltd.		13,000		0.2		89,050
Orient Overseas International Ltd.		13,000		0.2		77,244
Wheelock & Co., Ltd.		13,000		0.2		68,102
Other Securities				2.0		737,639

				2.8		1,044,666

Ireland 1.0%
DCC plc		1,872		0.3		111,175
Other Securities				0.7		252,244

				1.0		363,419

Israel 1.2%
Other Securities				1.2		449,711

Italy 2.4%
Banca Popolare di Milano Scarl *		90,545		0.2		72,215
Other Securities				2.2		803,818

				2.4		876,033

Japan 37.6%
Alps Electric Co., Ltd.		6,000		0.3		96,626
Canon Marketing Japan, Inc.		4,200		0.2		84,093
Casio Computer Co., Ltd.		5,500		0.3		95,933
COMSYS Holdings Corp.		4,200		0.2		80,293
Don Quijote Holdings Co., Ltd.		1,300		0.2		68,951
Ebara Corp.		13,000		0.2		73,456
Fuji Electric Co., Ltd.		14,000		0.2		67,786
Fujikura Ltd.		14,000		0.2		68,595
Fukuoka Financial Group, Inc.		14,000		0.2		67,921
Hitachi High-Technologies Corp.		2,800		0.2		78,325
IT Holdings Corp.		4,200		0.2		77,543
Itoham Foods, Inc.		14,000		0.2		67,652
Iwatani Corp.		9,000		0.2		70,347
Koito Manufacturing Co., Ltd.		3,300		0.2		90,279
Minebea Co., Ltd.		7,000		0.2		87,732
Mitsubishi Gas Chemical Co., Inc.		13,000		0.2		84,218
NGK Insulators Ltd.		3,500		0.2		88,271
NGK Spark Plug Co., Ltd.		2,500		0.2		73,038
Nippon Building Fund, Inc.		13		0.2		72,455
Nishimatsu Construction Co., Ltd.		14,000		0.2		74,794
Santen Pharmaceutical Co., Ltd.		1,400		0.2		80,859
Sohgo Security Services Co., Ltd.		2,800		0.2		69,754
Yakult Honsha Co., Ltd.		1,400		0.2		76,950
Other Securities				32.8		12,044,624

				37.6		13,840,495

See financial notes 45

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued

Number

% of Net

Value

Security

of Shares

Assets

($)

Luxembourg 0.4%

Other Securities

0.4

147,559

Netherlands 2.0%

Other Securities

2.0

737,126

New Zealand 0.7%

Other Securities

0.7

246,862

Norway 1.1%

Other Securities

1.1

422,242

Portugal 0.3%

Other Securities

0.3

128,131

Singapore 1.9%

CapitaLand Ltd.

26,000

0.2

69,169

Other Securities

1.7

643,535

1.9

712,704

Spain 2.2%

Abengoa S.A. B Shares (b)

14,800

0.2

85,192

Bankia S.A. *

60,411

0.3

117,132

Gamesa Corp. Tecnologica S.A. *

6,594

0.2

83,156

Other Securities

1.5

541,157

2.2

826,637

Sweden 2.1%

Other Securities

2.1

765,696

Switzerland 3.2%

Actelion Ltd. - Reg’d *

624

0.2

76,787

Other Securities

3.0

1,092,144

3.2

1,168,931

United Kingdom 12.9%

Dixons Carphone plc

17,914

0.3

102,521

Investec plc

7,420

0.2

67,590

London Stock Exchange Group plc

2,002

0.2

67,926

Persimmon plc *

3,978

0.2

87,469

The British Land Co. plc

6,890

0.2

83,588

Vesuvius plc

9,074

0.2

70,074

Other Securities

11.6

4,284,539

12.9

4,763,707

Total Common Stock

(Cost $35,153,834)

36,598,367

Other Investment Companies 2.2% of net assets

United States 2.2%

Equity Fund 0.1%

Other Securities

0.1

30,762

Securities Lending Collateral 2.1%

Other Securities

2.1

754,883

Total Other Investment Companies

(Cost $784,332)

785,645

Preferred Stock 0.4% of net assets

Germany 0.3%

Other Securities

0.3

114,363

Italy 0.1%

Other Securities

0.1

28,852

Sweden 0.0%

Other Securities

0.0

5,788

Total Preferred Stock

(Cost $160,752)

149,003

End of Investments.

At 08/31/14, the tax basis cost of the fund’s investments was $36,103,123 and the unrealized appreciation and depreciation were $2,754,922 and ($1,325,030), respectively, with a net unrealized appreciation of $1,429,892.

For the following notes, please refer to the complete schedule of portfolio holdings.


*		Non-income producing security.
(a)		The rate shown is the 7-day yield.
(b)		All or a portion of this security is on loan. Securities on loan were valued at $754,835.
(c)		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 $2,896 or 0.0% of net assets.
(d)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(e)		Illiquid security. At the period end, the value of these amounted to $22,659 or 0.1% of net assets.


ADR —		American Depositary Receipt
CDI —		CHESS Depositary Interest
CVA —		Dutch Certificate
ETF —		Exchange Traded Fund
Reg’d —		Registered
REIT —		Real Estate Investment Trust

46 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2014 (see financial note 2(a) for additional information):


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

Common Stock¹		$35,406,142		$—		$—		$35,406,142
Hong Kong¹		969,958		—		—		969,958
Banks		55,354		—		19,354		74,708
Luxembourg¹		144,254		—		—		144,254
Banks		—		—		3,305		3,305
Other Investment Companies¹		785,645		—		—		785,645
Preferred Stock¹		149,003		—		—		149,003

Total		$37,510,356		$—		$22,659		$37,533,015


¹		As categorized in the complete schedule of 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
	February 28,		Gains		Appreciation			Gross		Gross		Transfers		Transfers		August 31,
Investments in Securities	2014		(Losses)		(Depreciation)			Purchases		Sales		in		out		2014

Common Stock
Hong Kong		$—		$—		$643			$15,979		$—		$2,732		$—		$19,354
Luxembourg		—		—		(45,622	)	��	15,053		—		33,874		—		3,305
Portugal		—		—		(44,633	)		44,633		—		—		—		—

Total		$—		$—		($89,612	)		$75,665		$—		$36,606		$—		$22,659

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 from Level 1 to Level 3 due to valuation using unobservable inputs. There were no transfers between Level 1 and Level 2 for the period ended August 31, 2014.

See financial notes 47

Schwab Fundamental International Small Company Index ETF

Statement of

Assets and Liabilities

As of August 31, 2014; unaudited



Assets

Investments, at value (cost $35,344,035) including securities on loan of $754,835		$36,778,132
Collateral invested for securities on loan, at value (cost $754,883)	+	754,883

Total investments, at value (cost $36,098,918)		37,533,015
Cash		11,743
Foreign currency, at value (cost $16,801)		16,756
Receivables:
Investments sold		4,045
Dividends		47,263
Foreign tax reclaims		6,265
Income from securities on loan	+	651

Total assets		37,619,738

Liabilities

Collateral held for securities on loan		754,883
Payables:
Investments bought		15,462
Investment adviser fees	+	2,794

Total liabilities		773,139

Net Assets

Total assets		37,619,738
Total liabilities	−	773,139

Net assets		$36,846,599

Net Assets by Source
Capital received from investors		34,828,190
Net investment income not yet distributed		346,554
Net realized capital gains		238,273
Net unrealized capital appreciation		1,433,582

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$36,846,599

1,300,001

$28.34

48 See financial notes

Schwab Fundamental International Small Company Index ETF

Statement of

Operations

For the period March 1, 2014 through August 31, 2014; unaudited



Investment Income

Dividends (net of foreign withholding tax of $46,554)		$443,269
Securities on loan	+	671

Total investment income		443,940

Expenses

Investment adviser fees		74,364

Total expenses	−	74,364

Net investment income		369,576

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(133,961	)
Net realized gains on in-kind redemptions		392,467
Net realized gains on futures contracts		266
Net realized gains on foreign currency transactions	+	251

Net realized gains		259,023
Net change in unrealized appreciation (depreciation) on investments		70,491
Net change in unrealized appreciation (depreciation) on foreign currency translations	+	(783	)

Net change in unrealized appreciation (depreciation)	+	69,708

Net realized and unrealized gains		328,731

Increase in net assets resulting from operations		$698,307

See financial notes 49

Schwab Fundamental International Small Company Index ETF

Statements of

Changes in Net Assets

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



Operations


3/1/14-8/31/14			*8/14/13-2/28/14**
Net investment income		$369,576		$85,503
Net realized gains (losses)		259,023		(23,675	)
Net change in unrealized appreciation (depreciation)	+	69,708		1,363,874

Increase in net assets resulting from operations		698,307		1,425,702

Distributions to Shareholders

Distributions from net investment income		$—		($105,600	)

Transactions in Fund Shares

3/1/14-8/31/14

8/14/13*-2/28/14

SHARES

VALUE

SHARES

VALUE

Shares sold

500,000

$14,038,236

900,001

$23,656,700

Shares redeemed

(100,000

)

(2,866,746

)

—

Net transactions in fund shares

400,000

$11,171,490

900,001

$23,656,700

Shares Outstanding and Net Assets

3/1/14-8/31/14

8/14/13*-2/28/14

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

900,001

$24,976,802

—

$—

Total increase

400,000

11,869,797

900,001

24,976,802

End of period

1,300,001

$36,846,599

900,001

$24,976,802

Net investment income not yet distributed/Distributions in excess of net investment income

$346,554

($23,022

)


*		Commencement of operations.

50 See financial notes

Schwab Fundamental Emerging Markets Large Company Index ETF

Financial Statements

Financial Highlights


	3/1/14–			8/14/13¹–
	8/31/14*			2/28/14


Per-Share Data ($)

Net asset value at beginning of period		24.98			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.39			0.12
Net realized and unrealized gains (losses)		3.37			(0.00	)²

Total from investment operations		3.76			0.12
Less distributions:
Distributions from net investment income		—			(0.14	)

Net asset value at end of period		28.74			24.98

Total return (%)		15.05	³		0.45	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Total expenses		0.46	⁴		0.46	⁴
Net investment income (loss)		3.92	⁴		1.01	⁴
Portfolio turnover rate⁵		10	³		6	³
Net assets, end of period ($ x 1,000)		45,986			22,482

* Unaudited.

¹ Commencement of operations.

² Per-share amount was less than $0.01.

³ Not annualized.

⁴ Annualized.

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

See financial notes 51

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings as of August 31, 2014 (Unaudited)


				Cost		Value
Holdings by Category				($)		($)

	87	.3%	Common Stock		37,624,680		40,121,876
	2	.2%	Other Investment Companies		871,586		1,016,981
	10	.8%	Preferred Stock		4,356,162		4,971,631


	100	.3%	Total Investments		42,852,428		46,110,488
	(0	.3)%	Other Assets and Liabilities, Net				(124,294	)


	100	.0%	Net Assets				45,986,194


	Number		% of Net		Value
Security	of Shares		Assets		($)

Common Stock 87.3% of net assets

Brazil 7.0%
Banco do Brasil S.A.		22,400		0.8		350,283
Petroleo Brasileiro S.A.		91,200		2.0		902,401
Vale S.A.		35,446		1.0		461,303
Other Securities				3.2		1,501,131

				7.0		3,215,118

Chile 1.0%
Other Securities				1.0		451,164

China 15.0%
Bank of China Ltd., H Shares		1,136,000		1.1		527,680
China Construction Bank Corp., H Shares		1,078,000		1.7		801,182
China Mobile Ltd.		80,000		2.2		995,078
China Petroleum & Chemical Corp., H Shares		714,000		1.6		724,120
CNOOC Ltd.		218,000		1.0		438,242
Industrial & Commercial Bank of China Ltd., H Shares		912,000		1.3		604,850
PetroChina Co., Ltd., H Shares		416,000		1.3		590,440
Other Securities				4.8		2,192,792

				15.0		6,874,384

Colombia 0.3%
Other Securities				0.3		149,636

Czech Republic 0.4%
Other Securities				0.4		203,511

Greece 0.7%
Other Securities				0.7		335,055

Hungary 0.6%
Other Securities				0.6		253,674

India 2.4%
Reliance Industries Ltd. GDR (a)		13,104		0.9		436,101
Other Securities				1.5		646,989

				2.4		1,083,090

Indonesia 1.0%
Other Securities				1.0		469,929

Malaysia 2.0%
Other Securities				2.0		905,391

Mexico 3.5%
America Movil S.A.B. de C.V., Series L		415,300		1.1		507,869
Cemex S.A.B. de C.V., Series CPO *		200,000		0.6		265,688
Other Securities				1.8		831,118

				3.5		1,604,675

Peru 0.1%
Other Securities				0.1		62,028

Philippines 0.2%
Other Securities				0.2		107,615

Poland 2.1%
KGHM Polska Miedz S.A.		5,024		0.5		207,097
Other Securities				1.6		740,823

				2.1		947,920

Republic of Korea 17.4%
Hyundai Mobis Co., Ltd.		704		0.4		204,128
Hyundai Motor Co.		2,016		1.0		463,266
Kia Motors Corp.		3,712		0.5		224,049
Korea Electric Power Corp.		6,139		0.6		255,502
LG Corp.		5,828		0.9		407,520
LG Display Co., Ltd. *		7,520		0.6		259,950
LG Electronics, Inc.		4,752		0.8		354,309
POSCO		1,872		1.3		616,646
Samsung Electronics Co., Ltd.		1,216		3.2		1,479,899
Shinhan Financial Group Co., Ltd.		5,232		0.6		270,901
SK C&C Co., Ltd.		1,184		0.5		248,138
SK Holdings Co., Ltd.		1,472		0.5		233,006
SK Innovation Co., Ltd.		2,416		0.5		224,218
Other Securities				6.0		2,734,393

				17.4		7,975,925

Russia 11.1%
Gazprom OAO		446,400		3.5		1,588,021

52 See financial notes

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		% of Net		Value
Security	of Shares		Assets		($)
LUKOIL OAO *		28,288		3.4		1,567,245
MMC Norilsk Nickel OJSC		1,448		0.6		282,247
Mobile Telesystems OJSC ADR		11,200		0.4		206,640
Sberbank of Russia *		103,680		0.4		204,639
Surgutneftegas OAO *		748,800		1.1		515,293
Tatneft OAO *		38,560		0.5		237,025
Other Securities				1.2		498,671

				11.1		5,099,781

South Africa 7.0%
MTN Group Ltd.		23,184		1.1		525,441
Sasol Ltd.		10,208		1.3		593,433
Standard Bank Group Ltd.		15,856		0.4		205,740
Other Securities				4.2		1,913,758

				7.0		3,238,372

Taiwan 12.7%
Asustek Computer, Inc.		24,000		0.5		251,317
AU Optronics Corp.		512,000		0.6		254,368
Compal Electronics, Inc.		240,000		0.5		213,580
Hon Hai Precision Industry Co., Ltd.		219,864		1.6		750,276
Taiwan Semiconductor Manufacturing Co., Ltd.		183,000		1.7		759,171
Other Securities				7.8		3,596,048

				12.7		5,824,760

Thailand 1.2%
PTT PCL NVDR		24,000		0.5		241,202
Other Securities				0.7		322,605

				1.2		563,807

Turkey 1.6%
Other Securities				1.6		756,041

Total Common Stock
(Cost $37,624,680)						40,121,876




Other Investment Companies 2.2% of net assets

United States 2.2%
Equity Funds 1.7%
iShares India 50 ETF (c)		12,121		0.8		366,902
WisdomTree India Earnings Fund		17,040		0.8		388,001
Other Securities				0.1		40,554

				1.7		795,457

Securities Lending Collateral 0.5%
Other Securities				0.5		221,524

Total Other Investment Companies
(Cost $871,586)						1,016,981




Preferred Stock 10.8% of net assets

Brazil 9.3%
Banco Bradesco S.A.		23,089		0.9		421,423
Itau Unibanco Holding S.A.		40,614		1.6		732,579
Petroleo Brasileiro S.A.		136,000		3.1		1,419,231
Vale S.A.		48,000		1.2		557,109
Other Securities				2.5		1,160,726

				9.3		4,291,068

Colombia 0.1%
Other Securities				0.1		55,018

Republic of Korea 0.8%
Other Securities				0.8		369,710

Russia 0.6%
AK Transneft OAO *		101		0.5		221,920
Other Securities				0.1		33,915

				0.6		255,835

Total Preferred Stock
(Cost $4,356,162)						4,971,631



End of Investments.

At 08/31/14, the tax basis cost of the fund’s investments was $42,925,221 and the unrealized appreciation and depreciation were $4,419,953 and ($1,234,686), respectively, with a net unrealized appreciation of $3,185,267.

For the following notes, please refer to the complete schedule of portfolio holdings.


*		Non-income producing security.
(a)		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 $436,101 or 0.9% of net assets.
(b)		The rate shown is the 7-day yield.
(c)		All or a portion of this security is on loan. Securities on loan were valued at $215,912.
(d)		Illiquid security. At the period end, the value of these amounted to $896 or 0.0% of net assets.
(e)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.


ADR —		American Depositary Receipt
ETF —		Exchange Traded Fund
GDR —		Global Depositary Receipt
NVDR —		Non-Voting Depositary Receipt
Reg’d —		Registered

See financial notes 53

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of August 31, 2014 (see financial note 2(a) for additional information):


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

Common Stock¹		$36,883,504		$—		$—		$36,883,504
South Africa¹		3,060,759		—		—		3,060,759
Diversified Financials		176,717		—		896		177,613
Other Investment Companies¹		1,016,981		—		—		1,016,981
Preferred Stock¹		4,971,631		—		—		4,971,631

Total		$46,109,592		$—		$896		$46,110,488


¹		As categorized in the complete schedule of 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

February 28,

Gains

Appreciation

Gross

Transfers

August 31,

Investments in Securities

2014

(Losses)

(Depreciation)

Purchases

Sales

out

2014

Common Stock

South Africa

$—

($18,819

)

$19,715

$—

$896

Total

$—

($18,819

)

$19,715

$—

$896

54 See financial notes

Schwab Fundamental Emerging Markets Large Company Index ETF

Statement of

Assets and Liabilities

As of August 31, 2014; unaudited



Assets

Investments, at value (cost $42,630,904) including securities on loan of $215,912		$45,888,964
Collateral invested for securities on loan, at value (cost $221,524)	+	221,524

Total investments, at value (cost $42,852,428)		46,110,488
Foreign currency, at value (cost $42,541)		42,655
Receivables:
Fund shares sold		2,874,233
Dividends		70,851
Foreign tax reclaims		230
Income from securities on loan	+	143

Total assets		49,098,600

Liabilities

Collateral held for securities on loan		221,524
Payables:
Investments bought		2,886,135
Investment adviser fees		3,186
Due to custodian	+	1,561

Total liabilities		3,112,406

Net Assets

Total assets		49,098,600
Total liabilities	−	3,112,406

Net assets		$45,986,194

Net Assets by Source
Capital received from investors		42,297,470
Net investment income not yet distributed		605,912
Net realized capital losses		(175,129	)
Net unrealized capital appreciation		3,257,941

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$45,986,194

1,600,001

$28.74

See financial notes 55

Schwab Fundamental Emerging Markets Large Company Index ETF

Statement of

Operations

For the period March 1, 2014 through August 31, 2014; unaudited



Investment Income

Dividends (net of foreign withholding tax of $90,459)		$686,777
Securities on loan	+	150

Total investment income		686,927

Expenses

Investment adviser fees		72,161

Total expenses	−	72,161

Net investment income		614,766

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(107,810	)
Net realized gains on futures contracts		85
Net realized losses on foreign currency transactions	+	(22,774	)

Net realized losses		(130,499	)
Net change in unrealized appreciation (depreciation) on investments		3,778,834
Net change in unrealized appreciation (depreciation) on foreign currency translations	+	191

Net change in unrealized appreciation (depreciation)	+	3,779,025

Net realized and unrealized gains		3,648,526

Increase in net assets resulting from operations		$4,263,292

56 See financial notes

Schwab Fundamental Emerging Markets Large Company Index ETF

Statements of

Changes in Net Assets

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



Operations


3/1/14-8/31/14				*8/14/13-2/28/14**
Net investment income		$614,766			$80,648
Net realized losses		(130,499	)		(38,538	)
Net change in unrealized appreciation (depreciation)	+	3,779,025			(521,084	)

Increase (Decrease) in net assets resulting from operations		4,263,292			(478,974	)

Distributions to Shareholders

Distributions from net investment income		$—			($96,670	)

Transactions in Fund Shares

3/1/14-8/31/14

8/14/13*-2/28/14

SHARES

VALUE

SHARES

VALUE

Shares sold

700,000

$19,241,069

900,001

$23,057,477

Shares redeemed

—

Net transactions in fund shares

700,000

$19,241,069

900,001

$23,057,477

Shares Outstanding and Net Assets

3/1/14-8/31/14

8/14/13*-2/28/14

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

900,001

$22,481,833

—

$—

Total increase

700,000

23,504,361

900,001

22,481,833

End of period

1,600,001

$45,986,194

900,001

$22,481,833

Net investment income not yet distributed/Distributions in excess of net investment income

$605,912

($8,854

)


*		Commencement of operations.

See financial notes 57

Schwab Fundamental Index ETFs

Financial Notes, unaudited

1. Business Structure of the Funds

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



Schwab Strategic Trust (organized January 27, 2009)		Schwab U.S. 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		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

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).

The funds commenced operations on August 14, 2013.

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 funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services - Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

(a) Security Valuation:

Under procedures approved by the funds’ Board of Trustees (the “Board”), the investment adviser 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.

Schwab Fundamental Index ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):


	•	Securities for which no quoted value is available: The Board has adopted procedures to fair value each fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Each fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market 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.

	•	Futures contracts (“futures”): Futures are valued at their settlement prices as of the close of their exchanges.

	•	Short-term securities (60 days or less to maturity): Short-term securities may be 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, ETFs and futures contracts. 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

Schwab Fundamental Index ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):


		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, 2014 are disclosed in the Portfolio Holdings.

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

Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. A fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures are traded publicly on exchanges, and their market value may change daily.

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 be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating under Rule 2a-7 of the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the funds to terminate any loans at any given time. 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 and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. A fund retains the right to recall a security on loan. The aggregate market value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan (at market value computed at the time of the loan). Total costs and expenses, including agent fees, associated with securities lending activities under the trust’s Securities Lending Program paid to the unaffiliated lending agent are approximately 15% of the gross lending revenues.

The values of the securities on loan and the related cash collateral are disclosed in the funds’ Portfolio Holdings and the Statement of Assets and Liabilities. The following table presents the non-cash collateral as of August 31, 2014.


	Non-Cash
	Collateral Received

Schwab Fundamental U.S. Broad Market Index ETF		$13,613
Schwab Fundamental U.S. Large Company Index ETF		18,831
Schwab Fundamental U.S. Small Company Index ETF		9,746
Schwab Fundamental International Large Company Index ETF		27,832
Schwab Fundamental International Small Company Index ETF		39,918

(c) Security Transactions:

Schwab Fundamental Index ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

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.

When a fund closes out a futures position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.

(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.

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 rate 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:

Pursuant to the Investment Advisory Agreement (“Advisory 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:

Schwab Fundamental U.S. Broad Market Index ETF, Schwab Fundamental U.S. Large Company Index ETF, and Schwab Fundamental U.S. Small Company Index ETF generally make distributions from net investment income, if any, quarterly. Schwab Fundamental International Large Company Index ETF, Schwab Fundamental International Small Company Index ETF, and Schwab Fundamental Emerging Markets Large Company Index ETF generally make distributions from net investment income, if any, annually. All funds generally make distributions 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.

Schwab Fundamental Index ETFs

Financial Notes, unaudited (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) 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, 2014, if any, are reflected in the funds’ Statements of Assets and Liabilities.

(j) 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.

Market Risk. Equity 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.

Investment Style Risk. 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.

Large-Cap Risk. 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.

Mid-Cap Risk. Certain funds invest in mid-cap stocks. Mid-cap stocks tend to go in and out of favor based on market and economic conditions. Stocks of mid-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies. 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.

Small-Cap Risk. 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.

Foreign Investment Risk. 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

Schwab Fundamental Index ETFs

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of a fund’s investments, and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategy. 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. To the extent a fund’s investments in a single country or a limited number of countries represent a larger percentage of the fund’s assets, the fund’s performance may be adversely affected by the economic, political and social conditions in those countries and the fund may be subject to increased price volatility.

Emerging Markets Risk. Certain funds invest in emerging markets. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Such countries often have less uniformity in accounting and reporting requirements and greater risk associated with the custody of securities. 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.

Sampling Index Tracking Risk. 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.

Tracking Error Risk. 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.

Derivatives Risk. 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.

Liquidity Risk. A particular investment may be difficult to purchase or sell. A fund may be unable to sell a security at an advantageous time or price.

Concentration Risk. 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.

Schwab Fundamental Index ETFs

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

Shares of the Fund May Trade at Prices Other Than NAV. 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.

Lack of Government Insurance or Guarantee. 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:

Schwab

Fundamental

International

Emerging

U.S. Broad

U.S. Large

U.S. Small

Large

Small

Markets Large

Market

Company

Index ETF

0.32%

0.46%

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

Realized

Dividends

of Shares

Market

Gains (Losses)

Received

Held at

Gross

Held at

Value at

3/1/14 to

3/1/14

Fund

02/28/14

Purchases

Sales

8/31/14

Schwab Fundamental U.S. Broad Market Index ETF

2,064

2,265

(746

)

3,583

$102,151

$24

$332

Schwab Fundamental U.S. Large Company Index ETF

2,787

2,580

(803

)

4,564

130,120

485

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.

Schwab Fundamental Index ETFs

Financial Notes, unaudited (continued)

6. Board of Trustees:

7. Borrowing from Banks:

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

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

8. Derivatives:

Certain funds entered into equity index futures contracts during the report period. The funds invested in futures to equitize available cash. The fair value and variation margin for futures contracts held at August 31, 2014 are presented on the Portfolio Holdings and Statement of Assets and Liabilities, respectively. The net realized/unrealized gains (losses) on futures contracts are presented on the Statement of Operations. Refer to financial note 2(b) for the funds’ accounting policies with respect to futures contracts and financial note 3 for disclosures concerning the risks of investing in futures contracts. During the period, the month-end average contract values of futures contracts held by the funds and the month-end average number of contracts held were as follows:


	Contract Values		Number of Contracts

Schwab Fundamental U.S. Small Company Index ETF		$19,838		1
Schwab Fundamental Emerging Markets Large Company Index ETF		8,673		1

9. Purchases and Sales/Maturities of Investment Securities:

For the period ended August 31, 2014, 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 Fundamental U.S. Broad Market Index ETF		$6,080,058		$5,082,358
Schwab Fundamental U.S. Large Company Index ETF		8,183,336		6,892,212
Schwab Fundamental U.S. Small Company Index ETF		12,340,596		11,354,470
Schwab Fundamental International Large Company Index ETF		12,390,476		5,893,421
Schwab Fundamental International Small Company Index ETF		6,618,539		4,552,851
Schwab Fundamental Emerging Markets Large Company Index ETF		16,531,167		3,242,519

10. 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

Schwab Fundamental Index ETFs

Financial Notes, unaudited (continued)

10. In-Kind Transactions (continued):

to or out of the fund. From time to time, CSIM may cover the cost of any transaction fees when believed to be in the best interests of a fund.

The in-kind transactions for the period ended August 31, 2014 were as follows:


	In-Kind Purchases of Securities		In-Kind Sales of Securities

Schwab Fundamental U.S. Broad Market Index ETF		$68,173,433		$—
Schwab Fundamental U.S. Large Company Index ETF		76,761,219		1,431,817
Schwab Fundamental U.S. Small Company Index ETF		41,139,576		8,509,517
Schwab Fundamental International Large Company Index ETF		66,805,429		—
Schwab Fundamental International Small Company Index ETF		12,278,210		2,798,384
Schwab Fundamental Emerging Markets Large Company Index ETF		6,487,339		—

For the period ended August 31, 2014, there were no in-kind redemptions. However, if the funds have such transactions, they will realize net capital gains or losses resulting from in-kind redemptions of 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 will be disclosed in the funds’ Statements of Operations.

11. Federal Income Taxes

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of February 28, 2014, the funds had capital loss carryforwards available to offset future net capital gains before the expiration dates as follows:

Schwab

Fundamental

International

Emerging

U.S. Broad

U.S. Large

U.S. Small

Large

Small

Markets Large

Market

Company

Expiration Date

Index ETF

No expiration*

$605

$5,462

$—

Total

$605

$5,462

$—

* 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.

Schwab

Fundamental

International

Emerging

U.S. Broad

U.S. Large

U.S. Small

Large

Small

Markets Large

Market

Company

Index ETF

Deferred capital losses

$59,451

$27,887

$40,514

$41,217

$20,681

$23,714

Schwab Fundamental Index ETFs

Financial Notes, unaudited (continued)

11. Federal Income Taxes (continued):

to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended February 28, 2014, the funds did not incur any interest or penalties.

12. Other:

As a result of recent political and military actions undertaken by the Russian Federation, the U.S. and the European Union have instituted various economic sanctions against Russian individuals and entities. The U.S. and/or the European Union may impose additional economic sanctions, or take other actions, against individuals and/or companies in specific sectors of the Russian economy, including, but not limited to, the financial services, energy, metals and mining, engineering, and defense and defense related materials sectors. These sanctions, and the threat of additional sanctions, could have adverse consequences for the Russian economy, including continued weakening of the Russian currency, downgrades in Russia’s credit rating, and a significant decline in the value and liquidity of securities issued by Russian companies or the Russian government. Any of these events could negatively impact the investments of the Schwab Fundamental Emerging Markets Large Company Index ETF in Russian securities. These sanctions have the possibility of impairing a fund’s ability to invest in accordance with its investment strategy and/or to meet its investment objective.

In addition, as index based products, the funds will generally maintain exposure to Russian securities to the extent the indexes which they track include such securities. For this reason, the sanction instituted against Russia, and any continued disruption of the Russian economy, could negatively impact a fund’s performance to the extent its index and its portfolio contain securities of Russian issuers, and, depending on the fund’s exposure to Russian issuers, the impact could be significant.

13. Subsequent Events:

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 96 funds.

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); Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) and President, PIMCO Funds.	21	Director, PS Business Parks, Inc. (2005 – 2012).


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).	21	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).	21	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.	96	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).


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

144A securities These securities may be sold only to qualified institutional buyers under Securities Act Rule 144A.

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.

Barclays U.S. Treasury Bills 1 − 3 Months Index An index that includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value

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.

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

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.

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

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

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

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

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

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

Russell 2000 Index An index that measures the performance of the small-cap segment of the U.S. equity universe. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

Russell Fundamental Developed ex-U.S. Large Company Index An index that ranks companies in the Russell Developed ex-U.S. Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores are in the top 87.5% of the Russell Developed ex-U.S. Index. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. The Russell Developed ex-U.S. Index measures the performance of the largest investable securities in developed countries globally, excluding companies assigned to the United States.

Russell Fundamental Developed ex-U.S. Small Company Index An index that ranks companies in the Russell Developed ex-U.S. Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores are in the bottom 12.5% of the Russell Developed ex-U.S. Index. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. The Russell Developed ex- U.S. Index measures the performance of the largest investable securities in developed countries globally, excluding companies assigned to the United States.

Russell Fundamental Emerging Markets Large Company Index An index that ranks companies in the Russell Emerging Markets Index by measures of fundamental size and tracks the performance of those companies whose fundamental scores are in the top 87.5% of the Russell Emerging Markets Index. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. The Russell Emerging Markets Index measures the performance of the investable securities in emerging countries globally.

Russell Fundamental U.S. Index An index that selects, ranks, and weights securities by fundamental measures of company size as opposed to market capitalization. The fundamental overall company scores are created using as the universe the members of the Russell 3000 Index. Securities are grouped in order of decreasing company score for each index and each company receives a weight as a percentage of the sum of the weights of the individual securities within each index.

Russell Fundamental U.S. Large Company Index An index that ranks companies in the Russell 3000 Index by fundamental measures of size, and tracks the performance of those companies whose fundamental scores are in the top 87.5% of the Russell 3000 Index. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market.

Russell Fundamental U.S. Small Company Index An index that ranks companies in the Russell 3000 Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores are in the bottom 12.5% of the Russell 3000 Index. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market.

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.

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

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

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

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

Notes

Proxy Voting Policies, Procedures and Results

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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

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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

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This report is not authorized for distribution to prospective investors

unless preceded or accompanied by a current prospectus.

Printed on recycled paper.

MFR76318-01

00125308

Item 2: Code of Ethics.

Not applicable to this semi-annual report.

Item 3: Audit Committee Financial Expert.

Not applicable to this semi-annual report.

Item 4: Principal Accountant Fees and Services.

Not applicable to this semi-annual report.

Item 5: Audit Committee of Listed Registrants.

Not applicable.

Item 6: Schedule of Investments.

Except as noted below, the schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form. The schedules of investments for the 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, and Schwab Fundamental Emerging Markets Large Company Index ETF are filed under this Item.

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings as of August 31, 2014 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)

	99	.8%	Common Stock		125,059,017		134,234,854
	0	.3%	Other Investment Companies		414,207		416,289
	0	.0%	Rights		1,852		1,852
	0	.0%	Short-Term Investment		5,000		5,000


	100	.1%	Total Investments		125,480,076		134,657,995
	(0	.1)%	Other Assets and Liabilities, Net				(111,842	)


	100	.0%	Net Assets				134,546,153


	Number		Value
Security	of Shares		($)

Common Stock 99.8% of net assets

Automobiles & Components 1.0%
BorgWarner, Inc.		936		58,210
Cooper Tire & Rubber Co.		564		17,388
Dana Holding Corp.		1,183		27,481
Drew Industries, Inc.		182		8,079
Ford Motor Co.		19,603		341,288
General Motors Co.		7,935		276,138
Gentex Corp.		728		21,512
Harley-Davidson, Inc.		1,118		71,060
Johnson Controls, Inc.		4,778		233,214
Lear Corp.		819		82,826
Modine Manufacturing Co. *		91		1,294
Standard Motor Products, Inc.		79		2,971
Superior Industries International, Inc.		273		5,310
Tenneco, Inc. *		188		12,047
The Goodyear Tire & Rubber Co.		1,680		43,630
Thor Industries, Inc.		391		21,001
Tower International, Inc. *		79		2,649
TRW Automotive Holdings Corp. *		837		80,595
Visteon Corp. *		463		46,851

				1,353,544

Banks 5.4%
Associated Banc-Corp.		1,274		23,161
Astoria Financial Corp.		1,092		14,272
BancorpSouth, Inc.		637		13,485
Bank of America Corp.		93,515		1,504,656
Bank of Hawaii Corp.		364		21,130
BankUnited, Inc.		275		8,676
BB&T Corp.		4,381		163,543
BOK Financial Corp.		91		6,132
Capitol Federal Financial, Inc.		546		6,743
Cathay General Bancorp		364		9,479
CIT Group, Inc.		637		30,551
Citigroup, Inc.		18,382		949,430
City National Corp.		182		13,810
Comerica, Inc.		1,092		54,971
Commerce Bancshares, Inc.		368		16,976
Community Bank System, Inc.		91		3,216
Cullen/Frost Bankers, Inc.		273		21,458
CVB Financial Corp.		455		7,071
East West Bancorp, Inc.		364		12,682
EverBank Financial Corp.		91		1,718
F.N.B. Corp.		637		7,873
Fifth Third Bancorp		5,048		103,004
First Citizens BancShares, Inc., Class A		20		4,596
First Financial Bancorp		91		1,511
First Financial Bankshares, Inc. (f)		91		2,674
First Horizon National Corp.		1,729		21,025
First Niagara Financial Group, Inc.		1,501		13,059
First Republic Bank		182		8,900
FirstMerit Corp.		728		12,547
Fulton Financial Corp.		1,092		12,596
Glacier Bancorp, Inc.		364		9,908
Hancock Holding Co.		182		6,050
Hudson City Bancorp, Inc.		5,278		52,094
Huntington Bancshares, Inc.		5,278		51,962
Iberiabank Corp.		91		5,938
International Bancshares Corp.		364		9,595
JPMorgan Chase & Co.		26,299		1,563,476
KeyCorp		5,749		78,244
M&T Bank Corp.		558		68,986
MB Financial, Inc.		273		7,723
National Penn Bancshares, Inc.		91		910
NBT Bancorp, Inc.		182		4,370
New York Community Bancorp, Inc.		3,549		56,607
Northwest Bancshares, Inc.		364		4,590
Old National Bancorp		364		4,765
People’s United Financial, Inc.		1,820		27,209
Popular, Inc. *		1,183		36,626
Prosperity Bancshares, Inc.		91		5,496
Provident Financial Services, Inc.		455		7,740
Regions Financial Corp.		10,110		102,616
Signature Bank *		5		592
SunTrust Banks, Inc.		3,557		135,451
Susquehanna Bancshares, Inc.		637		6,574
SVB Financial Group *		91		10,130
Synovus Financial Corp.		921		22,242
TCF Financial Corp.		1,274		20,129
The PNC Financial Services Group, Inc.		2,730		231,367
Trustmark Corp.		364		8,640
U.S. Bancorp		8,752		370,035
UMB Financial Corp.		91		5,255
Umpqua Holdings Corp.		455		7,949
United Bankshares, Inc.		273		8,995
Valley National Bancorp		1,274		12,740
Washington Federal, Inc.		546		11,875
Webster Financial Corp.		364		10,738
Wells Fargo & Co.		23,136		1,190,116
Westamerica Bancorp		182		8,803
Wintrust Financial Corp.		91		4,238

See financial notes 1

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Zions Bancorp		1,456		42,428

				7,284,147

Capital Goods 7.8%
3M Co.		3,569		513,936
A.O. Smith Corp.		273		13,399
AAR Corp.		546		15,124
Actuant Corp., Class A		364		12,278
Acuity Brands, Inc.		182		22,546
AECOM Technology Corp. *		1,001		37,878
Aegion Corp. *		273		6,732
AGCO Corp.		819		40,000
Air Lease Corp.		22		834
Aircastle Ltd.		637		12,179
Albany International Corp., Class A		273		10,257
Allegion plc		91		4,680
Alliant Techsystems, Inc.		273		34,398
Allison Transmission Holdings, Inc.		91		2,792
American Science & Engineering, Inc.		13		753
AMETEK, Inc.		546		28,905
Apogee Enterprises, Inc.		273		9,967
Applied Industrial Technologies, Inc.		364		17,730
Armstrong World Industries, Inc. *		273		15,747
Astec Industries, Inc.		182		7,560
AZZ, Inc.		19		880
B/E Aerospace, Inc. *		273		23,134
Barnes Group, Inc.		364		12,463
Beacon Roofing Supply, Inc. *		273		7,786
Briggs & Stratton Corp.		637		12,829
Carlisle Cos., Inc.		364		30,176
Caterpillar, Inc.		3,976		433,662
Chart Industries, Inc. *		36		2,408
Chicago Bridge & Iron Co. N.V.		364		23,085
CIRCOR International, Inc.		91		6,478
CLARCOR, Inc.		273		17,256
Colfax Corp. *		11		700
Comfort Systems USA, Inc.		91		1,383
Crane Co.		273		18,998
Cubic Corp.		91		4,062
Cummins, Inc.		994		144,239
Curtiss-Wright Corp.		364		26,150
Danaher Corp.		1,639		125,564
Deere & Co.		2,693		226,454
DigitalGlobe, Inc. *		273		8,291
Donaldson Co., Inc.		546		22,856
Dover Corp.		1,092		95,954
Dycom Industries, Inc. *		546		17,041
Eaton Corp. plc		1,820		127,054
EMCOR Group, Inc.		728		31,450
Emerson Electric Co.		5,187		332,072
Encore Wire Corp.		273		11,589
EnerSys		273		17,551
Engility Holdings, Inc. *		91		3,198
EnPro Industries, Inc. *		91		6,179
ESCO Technologies, Inc.		91		3,276
Esterline Technologies Corp. *		182		21,336
Exelis, Inc.		2,735		47,015
Fastenal Co.		1,001		45,325
Flowserve Corp.		637		48,342
Fluor Corp.		2,002		147,928
Fortune Brands Home & Security, Inc.		461		19,920
Foster Wheeler AG		1,220		39,821
Franklin Electric Co., Inc.		182		6,909
GATX Corp.		455		30,153
Generac Holdings, Inc. *		91		4,233
General Cable Corp.		728		15,630
General Dynamics Corp.		2,825		348,181
General Electric Co.		61,744		1,604,109
Graco, Inc.		273		20,983
GrafTech International Ltd. *		1,001		8,739
Granite Construction, Inc.		546		19,257
Griffon Corp.		91		1,135
H&E Equipment Services, Inc.		273		11,168
Harsco Corp.		1,274		30,831
HEICO Corp.		93		4,818
Hexcel Corp. *		273		11,245
Hillenbrand, Inc.		364		12,172
Honeywell International, Inc.		3,399		323,687
Hubbell, Inc., Class B		273		33,006
Huntington Ingalls Industries, Inc.		364		37,168
Hyster-Yale Materials Handling, Inc.		10		771
IDEX Corp.		273		21,005
Illinois Tool Works, Inc.		2,366		208,705
Ingersoll-Rand plc		2,184		131,477
ITT Corp.		1,223		58,533
Jacobs Engineering Group, Inc. *		1,274		68,681
Joy Global, Inc.		835		52,730
Kaman Corp.		182		7,400
KBR, Inc.		2,406		52,980
Kennametal, Inc.		455		20,389
L-3 Communications Holdings, Inc.		1,585		174,271
Layne Christensen Co. *		819		9,320
Lennox International, Inc.		455		38,111
Lincoln Electric Holdings, Inc.		455		32,351
Lindsay Corp. (f)		10		778
Lockheed Martin Corp.		2,184		380,016
Masco Corp.		2,463		57,807
Masonite International Corp. *		91		5,203
MasTec, Inc. *		182		5,551
Meritor, Inc. *		1,274		17,365
Moog, Inc., Class A *		273		19,356
MRC Global, Inc. *		831		20,625
MSC Industrial Direct Co., Inc., Class A		182		16,405
Mueller Industries, Inc.		546		15,965
Mueller Water Products, Inc., Class A		1,456		13,439
MYR Group, Inc. *		91		2,128
Navistar International Corp. *		311		11,728
Nordson Corp.		182		14,753
Northrop Grumman Corp.		3,199		406,977
Orbital Sciences Corp. *		546		14,616
Oshkosh Corp.		910		45,209
Owens Corning		1,092		39,312
PACCAR, Inc.		2,008		126,122
Pall Corp.		364		30,711
Parker-Hannifin Corp.		1,118		129,129
Pentair plc		477		32,469
Polypore International, Inc. *		139		6,231
Precision Castparts Corp.		385		93,963
Quanex Building Products Corp.		364		6,574
Quanta Services, Inc. *		1,183		42,990
Raven Industries, Inc.		182		4,852
Raytheon Co.		3,292		317,151
RBC Bearings, Inc.		13		804

2 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Regal-Beloit Corp.		273		19,402
Rexnord Corp. *		91		2,658
Rockwell Automation, Inc.		546		63,669
Rockwell Collins, Inc.		910		70,052
Roper Industries, Inc.		273		41,103
Rush Enterprises, Inc., Class A *		364		13,348
Simpson Manufacturing Co., Inc.		273		8,823
Snap-on, Inc.		273		34,111
Spirit AeroSystems Holdings, Inc., Class A *		910		34,898
SPX Corp.		546		56,811
Standex International Corp.		11		821
Stanley Black & Decker, Inc.		835		76,402
TAL International Group, Inc. *		182		8,044
Teledyne Technologies, Inc. *		182		17,667
Tennant Co.		91		6,342
Terex Corp.		910		34,043
Textron, Inc.		2,184		82,992
The Babcock & Wilcox Co.		455		13,218
The Boeing Co.		2,507		317,888
The Greenbrier Cos., Inc.		182		13,017
The Manitowoc Co., Inc.		819		24,095
The Middleby Corp. *		100		8,623
The Timken Co.		637		28,850
The Toro Co.		364		22,397
Titan International, Inc.		182		2,639
TransDigm Group, Inc.		182		34,214
TriMas Corp. *		91		2,885
Trinity Industries, Inc.		1,092		52,831
Triumph Group, Inc.		182		12,625
Tutor Perini Corp. *		752		22,470
United Rentals, Inc. *		546		64,237
United Technologies Corp.		5,836		630,171
Universal Forest Products, Inc.		455		21,544
URS Corp.		1,399		84,751
Valmont Industries, Inc.		91		12,808
W.W. Grainger, Inc.		298		73,368
WABCO Holdings, Inc. *		273		28,174
Wabtec Corp.		273		22,757
Watsco, Inc.		182		16,833
Watts Water Technologies, Inc., Class A		182		11,519
WESCO International, Inc. *		455		38,215
Woodward, Inc.		273		14,259
Xylem, Inc.		1,001		37,297

				10,432,848

Commercial & Professional Services 1.2%
ABM Industries, Inc.		819		21,785
ACCO Brands Corp. *		182		1,407
Brady Corp., Class A		479		12,751
Cintas Corp.		910		60,187
Clean Harbors, Inc. *		182		11,018
Copart, Inc. *		580		19,969
Covanta Holding Corp.		728		15,281
Deluxe Corp.		364		21,676
Equifax, Inc.		546		43,003
FTI Consulting, Inc. *		459		17,029
G&K Services, Inc., Class A		182		10,172
Healthcare Services Group, Inc.		273		7,461
Herman Miller, Inc.		546		16,227
HNI Corp.		546		20,699
Huron Consulting Group, Inc. *		91		5,504
ICF International, Inc. *		182		6,148
IHS, Inc., Class A *		91		12,965
Insperity, Inc.		273		8,056
Interface, Inc.		273		4,649
Iron Mountain, Inc.		1,482		53,322
KAR Auction Services, Inc.		366		11,039
Kelly Services, Inc., Class A		1,001		16,727
Kforce, Inc.		364		7,305
Kimball International, Inc., Class B		182		2,890
Knoll, Inc.		364		6,658
Korn/Ferry International *		364		11,011
Manpowergroup, Inc.		1,304		101,164
McGrath RentCorp		182		6,734
Mobile Mini, Inc.		91		3,564
MSA Safety, Inc.		182		10,076
Navigant Consulting, Inc. *		637		10,377
Nielsen N.V.		546		25,657
On Assignment, Inc. *		91		2,690
Pitney Bowes, Inc.		2,831		76,607
Quad/Graphics, Inc.		505		11,317
R.R. Donnelley & Sons Co.		4,970		87,820
Republic Services, Inc.		2,042		80,312
Resources Connection, Inc.		637		9,752
Robert Half International, Inc.		1,215		61,005
Rollins, Inc.		182		5,415
Steelcase, Inc., Class A		1,217		19,107
Stericycle, Inc. *		182		21,631
Team, Inc. *		91		3,632
Tetra Tech, Inc.		364		9,282
The ADT Corp.		1,484		54,700
The Brink’s Co.		728		19,933
The Corporate Executive Board Co.		182		11,997
The Dun & Bradstreet Corp.		364		42,726
Towers Watson & Co., Class A		182		19,953
TrueBlue, Inc. *		546		14,818
Tyco International Ltd.		4,716		210,428
UniFirst Corp.		91		8,822
United Stationers, Inc.		655		26,626
Verisk Analytics, Inc., Class A *		277		17,781
Viad Corp.		273		5,990
Waste Connections, Inc.		364		17,858
Waste Management, Inc.		4,732		222,262
West Corp.		91		2,699

				1,647,674

Consumer Durables & Apparel 1.1%
Arctic Cat, Inc.		91		3,369
Brunswick Corp.		182		7,826
Callaway Golf Co.		1,183		9,003
Carter’s, Inc.		182		15,066
Coach, Inc.		2,228		82,057
Columbia Sportswear Co.		91		6,931
Crocs, Inc. *		364		5,624
D.R. Horton, Inc.		1,729		37,485
Deckers Outdoor Corp. *		182		16,788
Ethan Allen Interiors, Inc.		273		6,888
Fossil Group, Inc. *		277		28,057
G-III Apparel Group Ltd. *		91		7,511
Garmin Ltd.		910		49,440

See financial notes 3

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Hanesbrands, Inc.		281		28,853
Harman International Industries, Inc.		369		42,464
Hasbro, Inc.		1,183		62,291
Helen of Troy Ltd. *		182		10,596
Iconix Brand Group, Inc. *		20		833
JAKKS Pacific, Inc. *(f)		546		3,702
Jarden Corp. *		637		38,086
KB Home		728		12,922
La-Z-Boy, Inc.		546		11,652
Leggett & Platt, Inc.		1,547		54,284
Lennar Corp., Class A		376		14,732
M.D.C Holdings, Inc.		182		5,280
Mattel, Inc.		2,230		76,913
Meritage Homes Corp. *		182		7,511
Michael Kors Holdings Ltd. *		91		7,291
Mohawk Industries, Inc. *		276		40,301
Newell Rubbermaid, Inc.		1,771		59,364
NIKE, Inc., Class B		3,382		265,656
NVR, Inc. *		50		58,659
Oxford Industries, Inc.		12		736
Polaris Industries, Inc.		182		26,459
PulteGroup, Inc.		1,092		20,988
PVH Corp.		182		21,247
Quiksilver, Inc. *		1,274		3,707
Ralph Lauren Corp.		370		62,604
Skechers U.S.A., Inc., Class A *		283		16,519
Steven Madden Ltd. *		95		3,229
Sturm Ruger & Co., Inc. (f)		14		706
Tempur Sealy International, Inc. *		455		26,627
Toll Brothers, Inc. *		546		19,432
Tupperware Brands Corp.		273		20,000
Under Armour, Inc., Class A *		182		12,441
VF Corp.		1,399		89,704
Whirlpool Corp.		738		112,929
Wolverine World Wide, Inc.		492		13,067

				1,527,830

Consumer Services 1.8%
Apollo Education Group, Inc. *		2,821		78,339
Aramark		91		2,357
Bally Technologies, Inc. *		182		14,431
Bob Evans Farms, Inc.		573		24,880
Boyd Gaming Corp. *		1,274		13,568
Brinker International, Inc.		1,001		48,949
Buffalo Wild Wings, Inc. *		6		887
Burger King Worldwide, Inc.		300		9,612
Capella Education Co.		91		5,925
Career Education Corp. *		3,822		20,983
Carnival Corp.		2,730		103,412
Chipotle Mexican Grill, Inc. *		41		27,825
Choice Hotels International, Inc.		91		4,929
Churchill Downs, Inc.		9		848
Cracker Barrel Old Country Store, Inc.		95		9,539
Darden Restaurants, Inc.		1,365		64,592
DeVry Education Group, Inc.		546		23,440
DineEquity, Inc.		91		7,571
Domino’s Pizza, Inc.		364		27,464
Dunkin’ Brands Group, Inc.		91		3,962
Graham Holdings Co., Class B		55		39,534
H&R Block, Inc.		1,456		48,820
Hilton Worldwide Holdings, Inc. *		91		2,304
Houghton Mifflin Harcourt Co. *		91		1,747
Hyatt Hotels Corp., Class A *		182		11,118
International Game Technology		2,548		42,959
International Speedway Corp., Class A		273		9,143
ITT Educational Services, Inc. *		819		6,904
Jack in the Box, Inc.		546		32,460
Las Vegas Sands Corp.		463		30,794
Life Time Fitness, Inc. *		182		8,390
Marriott International, Inc., Class A		1,212		84,113
Marriott Vacations Worldwide Corp. *		91		5,423
Matthews International Corp., Class A		273		12,599
McDonald’s Corp.		7,126		667,849
MGM Resorts International *		1,638		40,082
Norwegian Cruise Line Holdings Ltd. *		26		866
Panera Bread Co., Class A *		91		13,645
Papa John’s International, Inc.		182		7,207
Penn National Gaming, Inc. *		1,009		11,392
Pinnacle Entertainment, Inc. *		364		9,096
Red Robin Gourmet Burgers, Inc. *		182		9,664
Regis Corp.		910		13,750
Royal Caribbean Cruises Ltd.		1,183		75,428
Ruby Tuesday, Inc. *		1,365		8,422
Scientific Games Corp., Class A *		91		924
SeaWorld Entertainment, Inc.		91		1,892
Service Corp. International		1,638		36,314
Six Flags Entertainment Corp.		182		6,639
Sonic Corp. *		568		11,990
Sotheby’s		273		11,141
Starbucks Corp.		1,820		141,614
Starwood Hotels & Resorts Worldwide, Inc.		934		78,960
Steiner Leisure Ltd. *		91		3,869
Strayer Education, Inc. *		364		22,102
Texas Roadhouse, Inc.		364		9,679
The Cheesecake Factory, Inc.		455		20,452
The Wendy’s Co.		2,548		20,766
Vail Resorts, Inc.		182		14,467
Weight Watchers International, Inc. (f)		481		11,876
Wyndham Worldwide Corp.		853		69,042
Wynn Resorts Ltd.		364		70,208
Yum! Brands, Inc.		2,139		154,928

				2,374,085

Diversified Financials 3.1%
Affiliated Managers Group, Inc. *		91		19,215
Ally Financial, Inc. *		546		13,432
American Express Co.		4,248		380,408
Ameriprise Financial, Inc.		837		105,261
Berkshire Hathaway, Inc., Class B *		6,570		901,732
BGC Partners, Inc., Class A		182		1,378
BlackRock, Inc.		328		108,414
Capital One Financial Corp.		3,300		270,798
Cash America International, Inc.		277		12,365
CBOE Holdings, Inc.		277		14,688
CME Group, Inc.		1,021		78,158
Discover Financial Services		1,911		119,189
ETRADE Financial Corp.		1,183		26,334
Eaton Vance Corp.		661		25,885
Ezcorp, Inc., Class A *		557		5,921
Federated Investors, Inc., Class B		1,001		30,721
First Cash Financial Services, Inc. *		103		5,949

4 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Franklin Resources, Inc.		2,325		131,409
Greenhill & Co., Inc.		182		8,922
Intercontinental Exchange, Inc.		188		35,532
Invesco Ltd.		1,674		68,366
Investment Technology Group, Inc. *		637		10,848
Janus Capital Group, Inc.		1,603		19,476
Lazard Ltd., Class A		273		14,922
Legg Mason, Inc.		1,215		59,924
Leucadia National Corp.		738		18,398
LPL Financial Holdings, Inc.		277		13,487
McGraw Hill Financial, Inc.		1,911		155,039
Moody’s Corp.		752		70,365
Morgan Stanley		5,551		190,455
MSCI, Inc. *		455		20,994
Nelnet, Inc., Class A		130		5,716
Northern Trust Corp.		1,092		75,730
PHH Corp. *		1,365		32,705
Portfolio Recovery Associates, Inc. *		91		5,172
Raymond James Financial, Inc.		364		19,889
Santander Consumer USA Holdings, Inc.		182		3,389
SEI Investments Co.		728		27,588
SLM Corp.		1,911		16,931
State Street Corp.		1,672		120,434
Stifel Financial Corp. *		91		4,357
T. Rowe Price Group, Inc.		1,114		90,228
TD Ameritrade Holding Corp.		735		24,336
The Bank of New York Mellon Corp.		4,732		185,400
The Charles Schwab Corp. (a)		3,583		102,151
The Goldman Sachs Group, Inc.		2,683		480,552
The NASDAQ OMX Group, Inc.		733		31,864
Waddell & Reed Financial, Inc., Class A		364		19,838
World Acceptance Corp. *(f)		91		7,129

				4,191,394

Energy 15.1%
Alon USA Energy, Inc.		91		1,513
Alpha Natural Resources, Inc. *		8,463		33,429
Anadarko Petroleum Corp.		2,309		260,201
Apache Corp.		2,901		295,409
Arch Coal, Inc. (f)		6,097		18,596
Atwood Oceanics, Inc. *		182		8,993
Baker Hughes, Inc.		3,197		221,041
Basic Energy Services, Inc. *		364		8,812
Bill Barrett Corp. *		364		8,288
Bristow Group, Inc.		182		13,282
C&J Energy Services, Inc. *		26		746
Cabot Oil & Gas Corp.		546		18,313
Cameron International Corp. *		1,001		74,404
CARBO Ceramics, Inc.		91		9,791
Chesapeake Energy Corp.		5,565		151,368
Chevron Corp.		24,297		3,145,247
Cimarex Energy Co.		364		52,838
Cloud Peak Energy, Inc. *		455		7,148
Comstock Resources, Inc.		364		8,874
Concho Resources, Inc. *		182		25,851
ConocoPhillips		28,335		2,301,369
CONSOL Energy, Inc.		1,183		47,651
Continental Resources, Inc. *		5		806
CVR Energy, Inc. (f)		18		893
Delek US Holdings, Inc.		387		13,537
Denbury Resources, Inc.		1,654		28,482
Devon Energy Corp.		3,822		288,255
Diamond Offshore Drilling, Inc. (f)		1,011		44,423
Dresser-Rand Group, Inc. *		463		32,086
Dril-Quip, Inc. *		91		9,234
Energen Corp.		455		36,618
Energy Transfer Partners LP		132		7,584
Energy XXI Bermuda Ltd.		459		7,574
EOG Resources, Inc.		1,456		159,985
EQT Corp.		364		36,058
EXCO Resources, Inc. (f)		1,092		5,274
Exterran Holdings, Inc.		819		38,190
Exxon Mobil Corp.		57,876		5,756,347
FMC Technologies, Inc. *		728		45,020
Forest Oil Corp. *		5,279		8,605
Forum Energy Technologies, Inc. *		23		783
Frontline Ltd. *(f)		1,729		3,544
Golar LNG Ltd.		14		882
Green Plains, Inc.		300		13,407
Gulfmark Offshore, Inc., Class A		91		3,659
Halliburton Co.		4,596		310,736
Helix Energy Solutions Group, Inc. *		910		24,861
Helmerich & Payne, Inc.		455		47,798
Hercules Offshore, Inc. *		1,562		5,264
Hess Corp.		3,571		361,028
HollyFrontier Corp.		1,482		74,144
Hornbeck Offshore Services, Inc. *		116		5,065
ION Geophysical Corp. *		1,288		4,444
Key Energy Services, Inc. *		2,002		12,613
Kinder Morgan, Inc.		2,319		93,363
Marathon Oil Corp.		11,864		494,610
Marathon Petroleum Corp.		3,563		324,269
Matrix Service Co. *		273		7,701
McDermott International, Inc. *		4,277		30,794
Murphy Oil Corp.		3,563		222,581
Nabors Industries Ltd.		3,670		99,861
National Oilwell Varco, Inc.		2,416		208,815
Newfield Exploration Co. *		1,456		65,258
Newpark Resources, Inc. *		546		6,732
Noble Energy, Inc.		1,092		78,777
Nordic American Tankers Ltd. (f)		728		6,596
North Atlantic Drilling Ltd.		91		997
Occidental Petroleum Corp.		5,518		572,382
Oceaneering International, Inc.		364		25,320
Oil States International, Inc. *		273		17,622
ONEOK, Inc.		1,274		89,435
Parker Drilling Co. *		1,638		10,287
Patterson-UTI Energy, Inc.		1,376		47,527
PBF Energy, Inc., Class A		91		2,585
PDC Energy, Inc. *		91		5,468
Peabody Energy Corp.		4,376		69,491
Penn Virginia Corp. *		1,024		15,380
Phillips 66		12,416		1,080,440
Pioneer Energy Services Corp. *		637		9,797
Pioneer Natural Resources Co.		187		39,018
QEP Resources, Inc.		1,652		58,762
Quicksilver Resources, Inc. *(f)		2,639		3,510
Range Resources Corp.		273		21,455
Rosetta Resources, Inc. *		91		4,550
Rowan Cos. plc, Class A		728		22,073
RPC, Inc.		91		2,072

See financial notes 5

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number			Value
Security	of Shares			($)
SandRidge Energy, Inc. *(f)		2,681			14,048
Schlumberger Ltd.		5,557			609,270
SEACOR Holdings, Inc. *		364			29,702
Seadrill Ltd.		2,133			79,454
SemGroup Corp., Class A		364			31,934
Ship Finance International Ltd.		364			7,204
SM Energy Co.		291			25,911
Southwestern Energy Co. *		1,001			41,221
Spectra Energy Corp.		3,388			141,144
Stone Energy Corp. *		455			16,011
Superior Energy Services, Inc.		910			32,614
Swift Energy Co. *(f)		546			6,197
Targa Resources Corp.		182			25,398
Teekay Corp.		364			22,321
Tesoro Corp.		2,228			144,241
TETRA Technologies, Inc. *		1,001			11,812
The Williams Cos., Inc.		3,387			201,323
Tidewater, Inc.		469			23,858
Ultra Petroleum Corp. *(f)		546			14,485
Unit Corp. *		374			24,613
Valero Energy Corp.		12,612			682,814
W&T Offshore, Inc.		455			6,789
Western Refining, Inc.		637			29,640
Whiting Petroleum Corp. *		364			33,728
World Fuel Services Corp.		2,044			90,713
WPX Energy, Inc. *		3,094			82,362

					20,266,698

Food & Staples Retailing 3.7%
Casey’s General Stores, Inc.		455			32,619
Costco Wholesale Corp.		4,277	��		517,859
CVS Caremark Corp.		13,842			1,099,747
Ingles Markets, Inc., Class A		91			2,297
PriceSmart, Inc.		91			8,155
Rite Aid Corp. *		2,198			13,672
Roundy’s, Inc.		856			3,201
Safeway, Inc.		7,152			248,747
SpartanNash Co.		182			3,911
SUPERVALU, Inc. *		8,788			83,925
Sysco Corp.		7,462			282,287
The Andersons, Inc.		230			15,817
The Fresh Market, Inc. *		130			4,336
The Kroger Co.		7,669			390,966
The Pantry, Inc. *		1,314			27,817
United Natural Foods, Inc. *		364			23,402
Wal-Mart Stores, Inc.		21,614			1,631,857
Walgreen Co.		9,132			552,669
Whole Foods Market, Inc.		1,575			61,645

					5,004,929

Food, Beverage & Tobacco 4.9%
Altria Group, Inc.		13,654			588,214
Archer-Daniels-Midland Co.		10,151			506,129
B&G Foods, Inc.		189			5,708
Brown-Forman Corp., Class B		546			50,592
Bunge Ltd.		3,387			286,710
Cal-Maine Foods, Inc.		91			7,199
Campbell Soup Co.		1,638			73,415
Chiquita Brands International, Inc. *		1,729			24,033
Coca-Cola Enterprises, Inc.		2,487			118,829
ConAgra Foods, Inc.		4,641			149,440
Constellation Brands, Inc., Class A *		469			40,845
Darling Ingredients, Inc. *		273			5,263
Dean Foods Co.		2,833			45,838
Dr. Pepper Snapple Group, Inc.		1,547			97,337
Flowers Foods, Inc.		1,001			19,600
Fresh Del Monte Produce, Inc.		637			20,346
General Mills, Inc.		3,658			195,264
Hormel Foods Corp.		819			41,507
Ingredion, Inc.		556			44,347
J&J Snack Foods Corp.		91			8,619
Kellogg Co.		1,765			114,672
Keurig Green Mountain, Inc.		91			12,132
Kraft Foods Group, Inc.		3,841			226,235
Lancaster Colony Corp.		182			16,091
Lorillard, Inc.		2,548			152,116
McCormick & Co., Inc. Non-Voting Shares		637			44,393
Mead Johnson Nutrition Co.		364			34,798
Molson Coors Brewing Co., Class B		819			60,565
Mondelez International, Inc., Class A		14,050			508,469
Monster Beverage Corp. *		281			24,843
PepsiCo, Inc.		9,450			874,030
Philip Morris International, Inc.		10,497			898,333
Pilgrim’s Pride Corp. *		546			16,309
Pinnacle Foods, Inc.		26			841
Post Holdings, Inc. *		273			10,093
Reynolds American, Inc.		2,170			126,880
Sanderson Farms, Inc.		273			25,476
Seaboard Corp. *		2			5,798
Snyder’s-Lance, Inc.		273			7,442
The Coca-Cola Co.		17,619			735,065
The Hain Celestial Group, Inc. *		91			8,951
The Hershey Co.		455			41,596
The J.M. Smucker Co.		742			76,129
The WhiteWave Foods Co. *		546			19,121
TreeHouse Foods, Inc. *		182			15,019
Tyson Foods, Inc., Class A		3,947			150,223
Universal Corp.		532			28,068
Vector Group Ltd.		365			8,720

					6,571,643

Health Care Equipment & Services 5.8%
Abbott Laboratories		12,380			522,931
Aetna, Inc.		4,027			330,737
Air Methods Corp. *		16			939
Alere, Inc. *		455			16,130
Align Technology, Inc. *		16			871
Allscripts Healthcare Solutions, Inc. *		910			13,445
Amedisys, Inc. *		819			17,133
AmerisourceBergen Corp.		3,203			247,880
Amsurg Corp. *		182			9,790
Analogic Corp.		91			6,570
Baxter International, Inc.		3,658			274,277
Becton Dickinson & Co.		1,457			170,717
BioScrip, Inc. *		182			1,540
Boston Scientific Corp. *		8,019			101,681
Brookdale Senior Living, Inc. *		455			15,902
C.R. Bard, Inc.		546			81,048
Cardinal Health, Inc.		4,879			359,582
CareFusion Corp. *		1,092			50,134

6 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Catamaran Corp. *		455		21,440
Centene Corp. *		364		28,439
Cerner Corp. *		364		20,988
Chemed Corp.		182		19,221
Cigna Corp.		1,093		103,398
Community Health Systems, Inc. *		1,638		88,911
CONMED Corp.		182		7,189
Covidien plc		2,366		205,440
DaVita HealthCare Partners, Inc. *		910		67,959
DENTSPLY International, Inc.		637		30,388
Edwards Lifesciences Corp. *		299		29,679
Envision Healthcare Holdings, Inc. *		22		804
Express Scripts Holding Co. *		2,784		205,821
Gentiva Health Services, Inc. *		578		10,444
Greatbatch, Inc. *		182		8,294
Haemonetics Corp. *		182		6,496
Hanger, Inc. *		91		2,038
HCA Holdings, Inc. *		4,212		294,082
Health Net, Inc. *		2,548		120,266
HealthSouth Corp.		273		10,753
Healthways, Inc. *		455		7,944
Henry Schein, Inc. *		467		55,895
Hill-Rom Holdings, Inc.		546		23,920
Hologic, Inc. *		728		18,105
Humana, Inc.		1,862		239,714
IDEXX Laboratories, Inc. *		182		22,563
Integra LifeSciences Holdings Corp. *		91		4,549
Intuitive Surgical, Inc. *		68		31,961
Invacare Corp.		728		11,168
Kindred Healthcare, Inc.		1,372		28,332
Laboratory Corp. of America Holdings *		557		59,727
LifePoint Hospitals, Inc. *		546		40,841
Magellan Health, Inc. *		455		25,416
Masimo Corp. *		182		4,084
McKesson Corp.		2,424		472,753
MEDNAX, Inc. *		364		20,839
Medtronic, Inc.		6,280		400,978
Molina Healthcare, Inc. *		364		17,414
MWI Veterinary Supply, Inc. *		12		1,705
Omnicare, Inc.		949		60,518
Orthofix International N.V. *		24		814
Owens & Minor, Inc.		1,183		40,695
Patterson Cos., Inc.		819		32,981
PharMerica Corp. *		637		15,855
Quality Systems, Inc.		91		1,425
Quest Diagnostics, Inc.		1,911		120,794
ResMed, Inc. (f)		273		14,483
Select Medical Holdings Corp.		1,011		14,174
Sirona Dental Systems, Inc. *		91		7,417
St. Jude Medical, Inc.		1,773		116,291
STERIS Corp.		455		25,612
Stryker Corp.		1,729		144,043
Team Health Holdings, Inc. *		17		995
Teleflex, Inc.		273		29,888
Tenet Healthcare Corp. *		1,004		61,425
The Cooper Cos., Inc.		91		14,836
The Ensign Group, Inc.		27		945
Thoratec Corp. *		91		2,275
Triple-S Management Corp., Class B *		182		3,483
UnitedHealth Group, Inc.		10,738		930,770
Universal Health Services, Inc., Class B		546		62,484
Varian Medical Systems, Inc. *		546		46,421
VCA, Inc. *		546		22,249
WellCare Health Plans, Inc. *		462		30,427
WellPoint, Inc.		7,553		880,000
West Pharmaceutical Services, Inc.		364		15,809
Zimmer Holdings, Inc.		1,365		135,558

				7,823,932

Household & Personal Products 1.9%
Avon Products, Inc.		5,413		75,999
Church & Dwight Co., Inc.		455		31,049
Colgate-Palmolive Co.		4,309		278,922
Elizabeth Arden, Inc. *		184		3,146
Energizer Holdings, Inc.		364		44,233
Herbalife Ltd. (f)		546		27,835
Kimberly-Clark Corp.		2,203		237,924
Nu Skin Enterprises, Inc., Class A		193		8,631
Spectrum Brands Holdings, Inc.		91		7,881
The Clorox Co.		673		59,628
The Estee Lauder Cos., Inc., Class A		651		50,016
The Procter & Gamble Co.		21,021		1,747,055
WD-40 Co.		91		6,252

				2,578,571

Insurance 3.4%
ACE Ltd.		1,490		158,432
Aflac, Inc.		2,716		166,328
Alleghany Corp. *		57		24,574
Allied World Assurance Co. Holdings AG		837		30,961
American Equity Investment Life Holding Co.		376		9,302
American Financial Group, Inc.		728		43,658
American International Group, Inc.		5,753		322,513
Aon plc		1,118		97,445
Arch Capital Group Ltd. *		1,023		56,858
Argo Group International Holdings Ltd.		188		9,896
Arthur J. Gallagher & Co.		546		25,788
Aspen Insurance Holdings Ltd.		728		30,955
Assurant, Inc.		1,118		74,627
Assured Guaranty Ltd.		554		13,379
Axis Capital Holdings Ltd.		1,207		58,202
Brown & Brown, Inc.		455		14,842
Cincinnati Financial Corp.		1,116		53,668
CNO Financial Group, Inc.		1,587		28,328
Employers Holdings, Inc.		91		1,948
Endurance Specialty Holdings Ltd.		562		32,635
Everest Re Group Ltd.		326		53,412
First American Financial Corp.		819		23,219
FNF Group *		1,773		50,194
Genworth Financial, Inc., Class A *		3,859		54,759
HCC Insurance Holdings, Inc.		742		37,204
Horace Mann Educators Corp.		273		8,135
Infinity Property & Casualty Corp.		182		12,445
Kemper Corp.		653		23,737
Lincoln National Corp.		1,389		76,451
Loews Corp.		2,507		109,656
Markel Corp. *		35		23,093

See financial notes 7

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Marsh & McLennan Cos., Inc.		2,422		128,608
Mercury General Corp.		273		13,986
MetLife, Inc.		3,844		210,421
Montpelier Re Holdings Ltd.		364		11,448
Old Republic International Corp.		1,678		25,757
PartnerRe Ltd.		560		62,546
Platinum Underwriters Holdings Ltd.		467		29,173
Primerica, Inc.		560		28,185
Principal Financial Group, Inc.		1,211		65,745
ProAssurance Corp.		273		12,613
Protective Life Corp.		560		38,864
Prudential Financial, Inc.		2,422		217,253
Reinsurance Group of America, Inc.		455		37,756
RenaissanceRe Holdings Ltd.		556		56,929
RLI Corp.		364		16,271
Safety Insurance Group, Inc.		91		5,023
Selective Insurance Group, Inc.		405		9,708
StanCorp Financial Group, Inc.		374		24,504
Stewart Information Services Corp.		184		5,928
Symetra Financial Corp.		364		8,860
The Allstate Corp.		3,852		236,859
The Chubb Corp.		2,928		269,230
The Hanover Insurance Group, Inc.		374		23,730
The Hartford Financial Services Group, Inc.		4,657		172,542
The Progressive Corp.		6,210		155,374
The Travelers Cos., Inc.		6,614		626,412
Torchmark Corp.		962		52,477
Unum Group		2,184		79,214
Validus Holdings Ltd.		649		25,382
W.R. Berkley Corp.		1,114		53,862
White Mountains Insurance Group Ltd.		61		38,689
XL Group plc		1,583		54,107

				4,524,100

Materials 4.2%
A. Schulman, Inc.		364		14,134
Air Products & Chemicals, Inc.		1,226		163,315
Airgas, Inc.		364		40,178
AK Steel Holding Corp. *		3,241		35,392
Albemarle Corp.		455		28,929
Alcoa, Inc.		18,339		304,611
Allegheny Technologies, Inc.		1,274		53,725
AptarGroup, Inc.		455		29,188
Ashland, Inc.		546		58,542
Avery Dennison Corp.		1,092		52,558
Axiall Corp.		273		11,351
Ball Corp.		1,274		81,663
Bemis Co., Inc.		910		37,073
Berry Plastics Group, Inc. *		91		2,194
Boise Cascade Co. *		91		2,735
Cabot Corp.		546		29,910
Calgon Carbon Corp. *		91		1,933
Carpenter Technology Corp.		273		14,941
Celanese Corp., Series A		819		51,220
Century Aluminum Co. *		910		22,732
CF Industries Holdings, Inc.		273		70,344
Chemtura Corp. *		728		17,974
Clearwater Paper Corp. *		91		6,297
Cliffs Natural Resources, Inc. (f)		2,871		43,266
Coeur Mining, Inc. *		1,365		10,811
Commercial Metals Co.		2,548		44,029
Compass Minerals International, Inc.		182		16,211
Crown Holdings, Inc. *		546		26,355
Cytec Industries, Inc.		374		38,537
Domtar Corp.		1,456		54,294
E.I. du Pont de Nemours & Co.		4,324		285,860
Eagle Materials, Inc.		182		18,548
Eastman Chemical Co.		926		76,367
Ecolab, Inc.		502		57,640
Ferro Corp. *		1,365		18,400
FMC Corp.		455		30,094
Freeport-McMoRan, Inc.		10,788		392,360
Globe Specialty Metals, Inc.		91		1,869
Graphic Packaging Holding Co. *		2,093		26,769
Greif, Inc., Class A		273		13,074
H.B. Fuller Co.		364		17,123
Hecla Mining Co.		364		1,190
Huntsman Corp.		1,820		48,940
Innophos Holdings, Inc.		182		10,583
Innospec, Inc.		91		3,838
International Flavors & Fragrances, Inc.		364		36,979
International Paper Co.		3,666		177,618
Intrepid Potash, Inc. *		91		1,395
Kaiser Aluminum Corp.		182		14,660
KapStone Paper & Packaging Corp. *		364		11,189
Koppers Holdings, Inc.		91		3,377
Kraton Performance Polymers, Inc. *		273		5,550
Louisiana-Pacific Corp. *		546		7,791
LSB Industries, Inc. *		21		841
LyondellBasell Industries N.V., Class A		2,833		323,954
Martin Marietta Materials, Inc.		273		35,752
Materion Corp.		182		5,939
MeadWestvaco Corp.		1,547		66,521
Minerals Technologies, Inc.		273		17,095
Monsanto Co.		1,820		210,483
Myers Industries, Inc.		364		7,174
NewMarket Corp.		47		19,124
Newmont Mining Corp.		6,305		170,802
Nucor Corp.		3,640		197,725
Olin Corp.		637		17,384
OM Group, Inc.		455		12,103
Owens-Illinois, Inc. *		1,547		47,632
P.H. Glatfelter Co.		455		11,343
Packaging Corp. of America		546		37,123
PolyOne Corp.		455		17,845
PPG Industries, Inc.		728		149,866
Praxair, Inc.		1,456		191,537
Quaker Chemical Corp.		11		858
Reliance Steel & Aluminum Co.		819		57,265
Resolute Forest Products, Inc. *		1,456		25,029
Rock-Tenn Co., Class A		546		26,841
Rockwood Holdings, Inc.		273		22,108
RPM International, Inc.		819		38,600
RTI International Metals, Inc. *		182		5,280
Schnitzer Steel Industries, Inc., Class A		819		22,678
Schweitzer-Mauduit International, Inc.		182		7,797
Sealed Air Corp.		1,456		52,562
Sensient Technologies Corp.		364		20,424
Sigma-Aldrich Corp.		547		56,888
Silgan Holdings, Inc.		364		18,327
Sonoco Products Co.		1,001		41,201

8 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Southern Copper Corp.		1,494		49,018
Steel Dynamics, Inc.		2,730		63,445
Stepan Co.		91		4,394
Stillwater Mining Co. *		455		8,445
SunCoke Energy, Inc. *		455		10,925
The Dow Chemical Co.		8,136		435,683
The Mosaic Co.		2,845		135,877
The Scotts Miracle-Gro Co., Class A		364		21,014
The Sherwin-Williams Co.		239		52,128
The Valspar Corp.		455		36,746
Tredegar Corp.		273		5,681
Tronox Ltd., Class A		91		2,763
United States Steel Corp.		3,114		120,356
Vulcan Materials Co.		728		46,141
W.R. Grace & Co. *		91		9,012
Walter Energy, Inc. (f)		3,003		16,787
Westlake Chemical Corp.		182		17,678
Worthington Industries, Inc.		546		22,080

				5,619,930

Media 3.5%
AMC Networks, Inc., Class A *		91		5,694
Cablevision Systems Corp., Class A		3,276		60,639
CBS Corp., Class B Non-Voting Shares		3,383		200,578
Central European Media Enterprises Ltd., Class A *		455		1,128
Charter Communications, Inc., Class A *		364		57,101
Cinemark Holdings, Inc.		913		32,220
Comcast Corp., Class A		12,103		662,397
Dex Media, Inc. *(f)		2,765		31,549
DIRECTV *		5,407		467,435
Discovery Communications, Inc., Class A *		928		40,572
Discovery Communications, Inc., Class C *		928		39,876
DISH Network Corp., Class A *		1,001		64,875
DreamWorks Animation SKG, Inc., Class A *		368		8,035
Gannett Co., Inc.		2,552		86,155
John Wiley & Sons, Inc., Class A		273		16,366
Lamar Advertising Co., Class A		546		28,654
Liberty Media Corp., Class A *		19		935
Liberty Media Corp., Class C *		38		1,842
Lions Gate Entertainment Corp.		182		5,899
Live Nation Entertainment, Inc. *		910		19,984
Loral Space & Communications, Inc. *		23		1,723
Meredith Corp.		301		14,021
Morningstar, Inc.		12		824
National CineMedia, Inc.		273		3,986
News Corp., Class A *		1,052		18,541
Omnicom Group, Inc.		1,911		137,611
Regal Entertainment Group, Class A		910		19,155
Scholastic Corp.		546		19,132
Scripps Networks Interactive, Inc., Class A		455		36,268
Sinclair Broadcast Group, Inc., Class A (f)		205		5,955
Sirius XM Holdings, Inc. *		2,190		7,950
The Interpublic Group of Cos., Inc.		2,615		51,071
The Madison Square Garden Co., Class A *		182		12,169
The New York Times Co., Class A		1,547		19,152
The Walt Disney Co.		9,153		822,672
Thomson Reuters Corp. (f)		2,912		110,365
Time Warner Cable, Inc.		2,141		316,718
Time Warner, Inc.		9,148		704,670
Twenty-First Century Fox, Inc., Class A		9,116		322,889
Viacom, Inc., Class B		3,186		258,544

				4,715,350

Pharmaceuticals, Biotechnology & Life Sciences 5.3%
AbbVie, Inc.		4,877		269,601
Actavis plc *		745		169,100
Agilent Technologies, Inc.		1,572		89,856
Alexion Pharmaceuticals, Inc. *		91		15,405
Allergan, Inc.		637		104,264
Amgen, Inc.		4,823		672,230
Bio-Rad Laboratories, Inc., Class A *		91		10,944
Biogen Idec, Inc. *		279		95,708
Bristol-Myers Squibb Co.		8,430		426,979
Bruker Corp. *		91		1,825
Celgene Corp. *		989		93,975
Charles River Laboratories International, Inc. *		455		26,891
Covance, Inc. *		364		30,176
Cubist Pharmaceuticals, Inc. *		91		6,282
Eli Lilly & Co.		6,946		441,488
Endo International plc *		469		29,880
Gilead Sciences, Inc. *		3,397		365,449
Hospira, Inc. *		910		48,903
Illumina, Inc. *		95		17,039
Impax Laboratories, Inc. *		273		6,727
Johnson & Johnson		14,770		1,532,092
Mallinckrodt plc *		107		8,731
Merck & Co., Inc.		14,663		881,393
Mettler-Toledo International, Inc. *		140		37,867
Mylan, Inc. *		1,092		53,071
Myriad Genetics, Inc. *(f)		91		3,293
PAREXEL International Corp. *		182		10,272
PDL BioPharma, Inc. (f)		1,092		11,018
PerkinElmer, Inc.		637		28,569
Perrigo Co., plc		182		27,071
Pfizer, Inc.		47,229		1,388,060
QIAGEN N.V. *		546		13,194
Quintiles Transnational Holdings, Inc. *		16		898
Techne Corp.		91		8,692
Thermo Fisher Scientific, Inc.		1,276		153,388
United Therapeutics Corp. *		91		10,723
Waters Corp. *		364		37,649
Zoetis, Inc.		734		26,013

				7,154,716

Real Estate 1.8%
AG Mortgage Investment Trust, Inc.		91		1,817
Alexandria Real Estate Equities, Inc.		182		14,389
American Campus Communities, Inc.		275		10,865
American Capital Agency Corp.		728		17,217
American Capital Mortgage Investment Corp.		91		1,873

See financial notes 9

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
American Tower Corp.		463		45,652
Annaly Capital Management, Inc.		10,216		121,570
Anworth Mortgage Asset Corp.		910		4,723
Apartment Investment & Management Co., Class A		1,092		37,423
Ashford Hospitality Trust, Inc.		184		2,133
AvalonBay Communities, Inc.		273		42,069
BioMed Realty Trust, Inc.		455		10,215
Boston Properties, Inc.		467		56,703
Brandywine Realty Trust		1,001		16,036
Camden Property Trust		273		20,431
Capstead Mortgage Corp.		546		7,218
CBL & Associates Properties, Inc.		983		18,677
CBRE Group, Inc., Class A *		819		26,028
Chimera Investment Corp.		4,004		13,253
Columbia Property Trust, Inc.		182		4,672
Corporate Office Properties Trust		364		10,330
Corrections Corp. of America		740		26,374
Cousins Properties, Inc.		546		6,929
Crown Castle International Corp.		588		46,752
CYS Investments, Inc.		861		8,119
DCT Industrial Trust, Inc.		1,001		7,958
DDR Corp.		910		16,580
DiamondRock Hospitality Co.		910		12,121
Digital Realty Trust, Inc.		455		29,689
Douglas Emmett, Inc.		364		10,399
Duke Realty Corp.		1,456		27,082
EastGroup Properties, Inc.		91		5,900
EPR Properties		182		10,358
Equity Commonwealth		910		24,461
Equity Lifestyle Properties, Inc.		91		4,158
Equity One, Inc.		91		2,148
Equity Residential		1,209		80,362
Essex Property Trust, Inc.		184		35,595
Extra Space Storage, Inc.		182		9,591
Federal Realty Investment Trust		182		22,710
Franklin Street Properties Corp.		91		1,106
General Growth Properties, Inc.		1,389		34,128
Glimcher Realty Trust		364		4,088
Government Properties Income Trust		91		2,186
Hatteras Financial Corp.		552		10,985
HCP, Inc.		1,300		56,329
Health Care REIT, Inc.		553		37,372
Healthcare Realty Trust, Inc.		273		6,814
Healthcare Trust of America, Inc., Class A		91		1,133
Hersha Hospitality Trust		182		1,236
Highwoods Properties, Inc.		455		19,360
Home Properties, Inc.		182		11,688
Hospitality Properties Trust		1,092		32,138
Host Hotels & Resorts, Inc.		3,094		70,605
Inland Real Estate Corp.		546		5,684
Invesco Mortgage Capital, Inc.		765		13,479
Investors Real Estate Trust		182		1,552
iStar Financial, Inc. *		1,041		15,490
Jones Lang LaSalle, Inc.		274		36,609
Kilroy Realty Corp.		182		11,511
Kimco Realty Corp.		1,729		40,614
LaSalle Hotel Properties		364		13,304
Lexington Realty Trust		728		7,921
Liberty Property Trust		637		22,563
Mack-Cali Realty Corp.		1,001		21,161
Medical Properties Trust, Inc.		91		1,282
MFA Financial, Inc.		2,030		17,133
Mid-America Apartment Communities, Inc.		281		20,322
National Retail Properties, Inc.		277		10,288
NorthStar Realty Finance Corp.		364		6,738
Omega Healthcare Investors, Inc.		273		10,284
Pennsylvania Real Estate Investment Trust		364		7,338
PennyMac Mortgage Investment Trust		91		2,026
Piedmont Office Realty Trust, Inc., Class A		1,387		27,033
Plum Creek Timber Co., Inc.		910		36,973
Post Properties, Inc.		300		16,506
Potlatch Corp.		364		15,535
Prologis, Inc.		833		34,103
PS Business Parks, Inc.		91		7,420
Public Storage		364		63,765
Rayonier, Inc.		647		22,173
Realty Income Corp.		273		12,209
Redwood Trust, Inc.		546		10,576
Regency Centers Corp.		477		27,256
Retail Properties of America, Inc., Class A		664		10,504
RLJ Lodging Trust		273		8,138
Ryman Hospitality Properties, Inc.		182		9,054
Sabra Health Care REIT, Inc.		455		12,958
Senior Housing Properties Trust		799		18,641
Simon Property Group, Inc.		651		110,689
SL Green Realty Corp.		182		19,902
Sovran Self Storage, Inc.		91		7,032
Starwood Property Trust, Inc.		102		2,433
Sun Communities, Inc.		91		4,880
Sunstone Hotel Investors, Inc.		637		9,281
Tanger Factory Outlet Centers, Inc.		182		6,354
Taubman Centers, Inc.		182		13,863
The Geo Group, Inc.		273		10,216
The Macerich Co.		364		23,766
Two Harbors Investment Corp.		91		975
UDR, Inc.		1,045		31,266
Ventas, Inc.		819		53,874
Vornado Realty Trust		729		77,179
Washington REIT		273		7,584
Weingarten Realty Investors		546		18,684
Weyerhaeuser Co.		7,593		257,782
WP Carey, Inc.		182		12,427

				2,426,078

Retailing 4.7%
Aaron’s, Inc.		1,183		30,309
Abercrombie & Fitch Co., Class A		1,274		53,253
Advance Auto Parts, Inc.		467		63,708
Aeropostale, Inc. *(f)		1,729		7,245
Amazon.com, Inc. *		354		120,020
American Eagle Outfitters, Inc.		3,655		51,462
ANN, Inc. *		637		26,397
Asbury Automotive Group, Inc. *		190		13,239
Ascena Retail Group, Inc. *		922		16,034
AutoNation, Inc. *		556		30,163
AutoZone, Inc. *		91		49,035
Barnes & Noble, Inc. *		1,274		30,398

10 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Bed Bath & Beyond, Inc. *		1,767		113,547
Best Buy Co., Inc.		7,874		251,102
Big Lots, Inc.		1,456		67,486
Brown Shoe Co., Inc.		637		19,008
Burlington Stores, Inc. *		91		3,246
Cabela’s, Inc. *		91		5,553
CarMax, Inc. *		910		47,684
Chico’s FAS, Inc.		1,389		21,946
Core-Mark Holding Co., Inc.		1,092		52,591
CST Brands, Inc.		757		26,374
Dick’s Sporting Goods, Inc.		556		25,059
Dillard’s, Inc., Class A		364		41,613
Dollar General Corp. *		1,670		106,863
Dollar Tree, Inc. *		1,365		73,198
DSW, Inc., Class A		182		5,631
Expedia, Inc.		776		66,658
Express, Inc. *		1,001		17,357
Family Dollar Stores, Inc.		819		65,381
Five Below, Inc. *		21		852
Foot Locker, Inc.		1,482		83,155
Fred’s, Inc., Class A		910		12,949
GameStop Corp., Class A		2,002		84,484
Genesco, Inc. *		182		14,433
Genuine Parts Co.		1,366		119,853
GNC Holdings, Inc., Class A		182		6,907
Group 1 Automotive, Inc.		364		29,178
Guess?, Inc.		829		19,432
hhgregg, Inc. *		557		3,983
Hibbett Sports, Inc. *		125		5,679
HSN, Inc.		182		11,027
J.C. Penney Co., Inc. *(f)		11,486		124,049
Kohl’s Corp.		4,123		242,391
L Brands, Inc.		1,486		94,881
Liberty Interactive Corp., Class A *		3,857		113,859
Lithia Motors, Inc., Class A		182		15,910
LKQ Corp. *		643		18,261
Lowe’s Cos., Inc.		11,567		607,383
Lumber Liquidators Holdings, Inc. *		91		5,207
Macy’s, Inc.		3,046		189,735
Monro Muffler Brake, Inc.		91		4,709
Murphy USA, Inc. *		649		35,351
Netflix, Inc. *		42		20,061
Nordstrom, Inc.		1,276		88,363
Nutrisystem, Inc.		1,092		17,822
O’Reilly Automotive, Inc. *		455		70,971
Office Depot, Inc. *		6,049		30,971
Outerwall, Inc. *(f)		223		13,141
Penske Automotive Group, Inc.		455		21,826
PetSmart, Inc.		860		61,550
Pier 1 Imports, Inc.		182		2,868
Pool Corp.		182		10,312
Rent-A-Center, Inc.		1,294		36,051
Ross Stores, Inc.		928		69,990
Sally Beauty Holdings, Inc. *		368		10,260
Sears Holdings Corp. *(f)		1,820		63,336
Sears Hometown & Outlet Stores, Inc. *		182		3,491
Select Comfort Corp. *		182		4,071
Signet Jewelers Ltd.		546		64,357
Sonic Automotive, Inc., Class A		637		15,734
Stage Stores, Inc.		546		9,539
Staples, Inc.		16,328		190,711
Stein Mart, Inc.		91		1,133
Target Corp.		9,866		592,651
The Bon-Ton Stores, Inc.		91		961
The Buckle, Inc. (f)		182		8,951
The Cato Corp., Class A		273		9,465
The Children’s Place, Inc.		370		19,891
The Finish Line, Inc., Class A		546		16,178
The Gap, Inc.		3,641		168,032
The Home Depot, Inc.		8,646		808,401
The Men’s Wearhouse, Inc.		637		34,417
The Pep Boys-Manny, Moe & Jack *		819		9,107
The Priceline Group, Inc. *		40		49,772
The TJX Cos., Inc.		3,935		234,565
Tiffany & Co.		469		47,341
Tractor Supply Co.		637		42,647
TripAdvisor, Inc. *		91		9,017
Tuesday Morning Corp. *		91		1,600
Ulta Salon, Cosmetics & Fragrance, Inc. *		115		11,191
Urban Outfitters, Inc. *		728		28,967
Vitamin Shoppe, Inc. *		91		3,566
Williams-Sonoma, Inc.		667		43,869

				6,292,375

Semiconductors & Semiconductor Equipment 2.9%
Advanced Energy Industries, Inc. *		91		1,752
Advanced Micro Devices, Inc. *(f)		6,097		25,424
Altera Corp.		1,183		41,807
Amkor Technology, Inc. *		1,911		19,874
Analog Devices, Inc.		1,587		81,127
Applied Materials, Inc.		9,118		210,671
Atmel Corp. *		3,059		27,103
Avago Technologies Ltd.		637		52,291
Broadcom Corp., Class A		3,003		118,258
Brooks Automation, Inc.		728		8,256
Cabot Microelectronics Corp. *		182		7,808
Cirrus Logic, Inc. *		303		7,327
Cree, Inc. *		182		8,292
Cypress Semiconductor Corp. *		1,567		17,315
Diodes, Inc. *		273		6,948
Entegris, Inc. *		910		11,047
Fairchild Semiconductor International, Inc. *		1,258		22,078
First Solar, Inc. *		374		26,060
Freescale Semiconductor Ltd. *		91		1,916
GT Advanced Technologies, Inc. *(f)		1,043		18,576
Integrated Device Technology, Inc. *		1,132		18,621
Intel Corp.		52,871		1,846,255
International Rectifier Corp. *		455		17,927
Intersil Corp., Class A		2,093		31,489
KLA-Tencor Corp.		1,001		76,496
Lam Research Corp.		839		60,333
Linear Technology Corp.		910		41,050
Marvell Technology Group Ltd.		3,731		51,898
Maxim Integrated Products, Inc.		1,820		56,220
Micrel, Inc.		455		5,701
Microchip Technology, Inc.		1,001		48,879
Micron Technology, Inc. *		4,145		135,127
Microsemi Corp. *		222		5,914
MKS Instruments, Inc.		364		12,354
NVIDIA Corp.		2,730		53,099

See financial notes 11

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
OmniVision Technologies, Inc. *		364		9,868
ON Semiconductor Corp. *		2,366		23,092
Photronics, Inc. *		728		6,428
PMC-Sierra, Inc. *		819		6,044
Power Integrations, Inc.		15		897
RF Micro Devices, Inc. *		1,638		20,426
Silicon Laboratories, Inc. *		273		12,375
Skyworks Solutions, Inc.		455		25,780
Spansion, Inc., Class A *		455		10,147
SunEdison, Inc. *		2,029		44,699
Synaptics, Inc. *		182		14,942
Teradyne, Inc.		910		18,737
Tessera Technologies, Inc.		273		8,073
Texas Instruments, Inc.		8,200		395,076
TriQuint Semiconductor, Inc. *		1,183		24,447
Veeco Instruments, Inc. *		91		3,219
Xilinx, Inc.		1,134		47,912

				3,847,455

Software & Services 6.5%
Accenture plc, Class A		2,786		225,833
ACI Worldwide, Inc. *		45		876
Activision Blizzard, Inc.		1,755		41,313
Acxiom Corp. *		728		13,501
Adobe Systems, Inc. *		1,585		113,961
Akamai Technologies, Inc. *		463		27,974
Alliance Data Systems Corp. *		187		49,488
Amdocs Ltd.		1,274		60,005
ANSYS, Inc. *		213		17,317
AOL, Inc. *		1,579		68,244
Autodesk, Inc. *		728		39,050
Automatic Data Processing, Inc.		2,143		178,898
Booz Allen Hamilton Holding Corp.		364		8,074
Broadridge Financial Solutions, Inc.		910		38,711
CA, Inc.		2,137		60,349
CACI International, Inc., Class A *		370		26,684
Cadence Design Systems, Inc. *		455		8,026
Citrix Systems, Inc. *		455		31,968
Cognizant Technology Solutions Corp., Class A *		1,092		49,937
Computer Sciences Corp.		2,050		122,569
Compuware Corp.		2,275		21,271
Convergys Corp.		1,365		26,208
Conversant, Inc. *		455		12,531
CoreLogic, Inc. *		2,052		58,010
CSG Systems International, Inc.		455		12,613
Digital River, Inc. *		819		12,506
DST Systems, Inc.		364		33,783
EarthLink Holdings Corp.		3,108		12,836
eBay, Inc. *		3,654		202,797
Electronic Arts, Inc. *		750		28,380
Equinix, Inc. *		91		19,862
Euronet Worldwide, Inc. *		184		9,807
Facebook, Inc., Class A *		372		27,833
FactSet Research Systems, Inc.		182		23,187
Fair Isaac Corp.		364		21,174
Fidelity National Information Services, Inc.		1,820		103,285
Fiserv, Inc. *		1,306		84,198
FleetCor Technologies, Inc. *		12		1,724
Gartner, Inc. *		182		13,575
Genpact Ltd. *		641		11,153
Global Cash Access Holdings, Inc. *		728		5,686
Global Payments, Inc.		273		19,853
Google, Inc., Class A *		382		222,462
Google, Inc., Class C *		394		225,210
Heartland Payment Systems, Inc.		182		8,694
IAC/InterActiveCorp		675		46,973
Informatica Corp. *		182		6,198
International Business Machines Corp.		8,827		1,697,432
Intuit, Inc.		1,114		92,663
j2 Global, Inc.		182		9,728
Jack Henry & Associates, Inc.		273		15,782
Leidos Holdings, Inc.		1,409		53,049
Manhattan Associates, Inc. *		364		10,512
ManTech International Corp., Class A		364		10,549
MasterCard, Inc., Class A		1,733		131,379
MAXIMUS, Inc.		273		11,248
Mentor Graphics Corp.		273		5,954
MICROS Systems, Inc. *		182		12,371
Microsoft Corp.		57,057		2,592,100
Monster Worldwide, Inc. *		3,654		21,084
NeuStar, Inc., Class A *		455		13,418
Nuance Communications, Inc. *		643		10,937
Oracle Corp.		14,657		608,705
Paychex, Inc.		1,547		64,433
Progress Software Corp. *		273		6,323
PTC, Inc. *		364		14,083
Rackspace Hosting, Inc. *		184		6,366
Red Hat, Inc. *		210		12,793
Rovi Corp. *		641		14,826
Salesforce.com, Inc. *		182		10,754
Sapient Corp. *		455		6,602
Science Applications International Corp.		182		8,394
Solera Holdings, Inc.		91		5,547
Sykes Enterprises, Inc. *		455		9,528
Symantec Corp.		5,678		137,862
Synopsys, Inc. *		463		18,937
Take-Two Interactive Software, Inc. *		455		10,697
TeleTech Holdings, Inc. *		273		7,330
Teradata Corp. *		731		33,385
The Western Union Co.		5,506		96,190
TIBCO Software, Inc. *		546		11,379
Total System Services, Inc.		1,183		37,217
Unisys Corp. *		546		12,782
Vantiv, Inc., Class A *		91		2,846
VeriFone Systems, Inc. *		275		9,603
VeriSign, Inc. *		546		31,163
Visa, Inc., Class A		546		116,036
Vistaprint N.V. *		182		8,787
VMware, Inc., Class A *		91		8,971
WebMD Health Corp. *		91		4,400
WEX, Inc. *		91		10,342
Xerox Corp.		13,832		191,020
Yahoo! Inc. *		2,312		89,035

				8,749,129

Technology Hardware & Equipment 4.8%
ADTRAN, Inc.		546		12,602
Amphenol Corp., Class A		547		56,346
Anixter International, Inc.		364		32,480

12 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Apple, Inc.		11,830		1,212,575
ARRIS Group, Inc. *		637		19,499
Arrow Electronics, Inc. *		1,820		113,295
Avnet, Inc.		2,366		105,311
Belden, Inc.		188		13,737
Benchmark Electronics, Inc. *		1,092		26,896
Brocade Communications Systems, Inc.		2,457		25,921
CDW Corp.		91		3,007
Checkpoint Systems, Inc. *		91		1,260
Cisco Systems, Inc.		36,339		908,112
Cognex Corp. *		182		7,640
Coherent, Inc. *		182		11,734
CommScope Holding Co., Inc. *		91		2,344
Comtech Telecommunications Corp.		273		10,385
Corning, Inc.		8,372		174,640
Diebold, Inc.		637		24,187
Dolby Laboratories, Inc., Class A *		182		8,478
EchoStar Corp., Class A *		273		13,767
Electronics For Imaging, Inc. *		364		16,031
EMC Corp.		8,240		243,327
Emulex Corp. *		1,183		6,483
F5 Networks, Inc. *		182		22,603
Fabrinet *		91		1,473
FEI Co.		91		7,648
Finisar Corp. *		364		7,393
FLIR Systems, Inc.		637		21,524
Harris Corp.		1,092		77,958
Hewlett-Packard Co.		48,636		1,848,168
Ingram Micro, Inc., Class A *		5,466		157,585
Insight Enterprises, Inc. *		819		21,491
InterDigital, Inc.		182		8,075
Itron, Inc. *		388		16,381
Jabil Circuit, Inc.		2,966		64,006
JDS Uniphase Corp. *		637		7,357
Juniper Networks, Inc.		3,731		86,522
Knowles Corp. *		91		2,996
Lexmark International, Inc., Class A		1,092		55,211
Littelfuse, Inc.		91		8,364
Motorola Solutions, Inc.		2,143		127,294
MTS Systems Corp.		91		6,468
National Instruments Corp.		364		12,067
NCR Corp. *		819		27,977
NetApp, Inc.		1,001		42,202
NETGEAR, Inc. *		182		6,046
OSI Systems, Inc. *		91		6,348
Plantronics, Inc.		182		8,687
Plexus Corp. *		455		18,741
Polycom, Inc. *		1,092		14,469
QLogic Corp. *		1,729		15,647
QUALCOMM, Inc.		3,822		290,854
Riverbed Technology, Inc. *		91		1,714
Rofin-Sinar Technologies, Inc. *		273		6,541
SanDisk Corp.		728		71,315
Sanmina Corp. *		1,638		38,460
ScanSource, Inc. *		364		14,036
SYNNEX Corp. *		467		32,569
Tech Data Corp. *		1,820		122,850
Trimble Navigation Ltd. *		455		15,133
TTM Technologies, Inc. *		182		1,392
ViaSat, Inc. *		91		5,182
Vishay Intertechnology, Inc.		1,911		30,576
Western Digital Corp.		1,034		106,512
Zebra Technologies Corp., Class A *		364		28,403

				6,516,295

Telecommunication Services 3.8%
AT&T, Inc.		71,963		2,515,826
CenturyLink, Inc.		5,138		210,607
Cincinnati Bell, Inc. *		3,218		11,810
Consolidated Communications Holdings, Inc.		364		8,874
Frontier Communications Corp.		17,836		121,285
Inteliquent, Inc.		91		1,110
Intelsat S.A. *		386		6,770
Level 3 Communications, Inc. *		637		28,640
NTELOS Holdings Corp. (f)		382		5,039
SBA Communications Corp., Class A *		182		20,073
Spok Holdings, Inc.		91		1,347
Sprint Corp. *		23,792		133,473
T-Mobile US, Inc. *		364		10,949
Telephone & Data Systems, Inc.		2,199		57,922
tw telecom, Inc. *		455		18,671
Verizon Communications, Inc.		37,310		1,858,784
Vonage Holdings Corp. *		364		1,256
Windstream Holdings, Inc.		10,287		116,243

				5,128,679

Transportation 1.9%
Alaska Air Group, Inc.		546		25,302
Allegiant Travel Co.		5		614
AMERCO		11		3,056
American Airlines Group, Inc.		182		7,082
ArcBest Corp.		376		13,498
Atlas Air Worldwide Holdings, Inc. *		282		9,433
Avis Budget Group, Inc. *		1,403		94,717
C.H. Robinson Worldwide, Inc.		1,563		106,690
Con-way, Inc.		637		32,646
Copa Holdings S.A., Class A		91		11,191
CSX Corp.		8,928		275,965
Delta Air Lines, Inc.		655		25,925
Expeditors International of Washington, Inc.		1,365		56,375
FedEx Corp.		2,515		371,918
Forward Air Corp.		182		8,425
Genesee & Wyoming, Inc., Class A *		91		8,948
Hawaiian Holdings, Inc. *		728		11,357
Heartland Express, Inc.		455		10,670
Hertz Global Holdings, Inc. *		3,094		91,428
Hub Group, Inc., Class A *		364		15,830
J.B. Hunt Transport Services, Inc.		455		34,375
JetBlue Airways Corp. *		2,275		27,823
Kansas City Southern		182		20,996
Kirby Corp. *		182		21,711
Knight Transportation, Inc.		455		11,534
Landstar System, Inc.		364		24,703
Matson, Inc.		819		22,105
Navios Maritime Holdings, Inc.		273		2,583
Norfolk Southern Corp.		1,911		204,477
Old Dominion Freight Line, Inc. *		273		18,201
Republic Airways Holdings, Inc. *		1,456		14,778
Ryder System, Inc.		748		67,574

See financial notes 13

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Saia, Inc. *		273		12,959
SkyWest, Inc.		1,638		14,693
Southwest Airlines Co.		1,130		36,171
Spirit Airlines, Inc. *		79		5,561
Swift Transportation Co. *		546		11,564
Union Pacific Corp.		4,004		421,501
United Continental Holdings, Inc. *		490		23,329
United Parcel Service, Inc., Class B		3,276		318,853
UTi Worldwide, Inc. *		1,652		15,165
Werner Enterprises, Inc.		637		15,861

				2,527,587

Utilities 4.2%
AES Corp.		8,608		130,669
AGL Resources, Inc.		739		39,396
ALLETE, Inc.		273		13,287
Alliant Energy Corp.		938		54,864
Ameren Corp.		3,185		127,368
American Electric Power Co., Inc.		4,462		239,609
American States Water Co.		182		5,879
American Water Works Co., Inc.		928		46,966
Aqua America, Inc.		547		13,680
Atlantic Power Corp. (f)		2,292		9,076
Atmos Energy Corp.		1,001		50,611
Avista Corp.		546		17,723
Black Hills Corp.		273		14,668
California Water Service Group		273		6,650
Calpine Corp. *		2,912		69,218
CenterPoint Energy, Inc.		3,836		95,286
Cleco Corp.		370		20,875
CMS Energy Corp.		2,348		71,708
Consolidated Edison, Inc.		2,912		168,576
Dominion Resources, Inc.		4,509		316,622
DTE Energy Co.		1,674		130,990
Duke Energy Corp.		3,935		291,151
Dynegy, Inc. *		91		2,974
Edison International		3,104		183,571
El Paso Electric Co.		273		10,740
Entergy Corp.		3,185		246,551
Exelon Corp.		11,376		380,186
FirstEnergy Corp.		6,380		218,451
Great Plains Energy, Inc.		1,376		35,322
Hawaiian Electric Industries, Inc. (f)		1,163		29,529
IDACORP, Inc.		273		15,485
Integrys Energy Group, Inc.		1,001		67,958
ITC Holdings Corp.		549		20,505
MDU Resources Group, Inc.		1,729		54,135
MGE Energy, Inc.		184		7,402
National Fuel Gas Co.		455		34,780
New Jersey Resources Corp.		364		19,012
NextEra Energy, Inc.		2,615		257,447
NiSource, Inc.		2,366		93,859
Northeast Utilities		1,412		64,797
Northwest Natural Gas Co.		273		12,411
NorthWestern Corp.		273		13,180
NRG Energy, Inc.		3,458		106,437
OGE Energy Corp.		1,092		40,972
Otter Tail Corp.		364		10,370
Pepco Holdings, Inc.		3,367		92,795
PG&E Corp.		4,491		208,742
Piedmont Natural Gas Co., Inc.		546		20,420
Pinnacle West Capital Corp.		1,001		57,007
PNM Resources, Inc.		728		19,081
Portland General Electric Co.		742		25,577
PPL Corp.		4,493		155,593
Public Service Enterprise Group, Inc.		5,551		207,552
Questar Corp.		1,547		36,370
SCANA Corp.		1,183		61,445
Sempra Energy		1,602		169,764
South Jersey Industries, Inc.		182		10,547
Southwest Gas Corp.		364		19,004
TECO Energy, Inc.		2,457		44,472
The Empire District Electric Co.		364		9,409
The Laclede Group, Inc.		273		13,500
The Southern Co.		7,124		316,306
UGI Corp.		1,023		54,199
UIL Holdings Corp.		273		10,169
Vectren Corp.		728		30,015
Westar Energy, Inc.		1,019		37,632
WGL Holdings, Inc.		499		21,701
Wisconsin Energy Corp.		1,183		53,625
Xcel Energy, Inc.		4,368		139,994

				5,675,865

Total Common Stock
(Cost $125,059,017)				134,234,854




Other Investment Companies 0.3% of net assets

Equity Fund 0.0%
iShares Russell 3000 ETF		300		35,931

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d)		35,440		35,440

Securities Lending Collateral 0.3%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d)		344,918		344,918

Total Other Investment Companies
(Cost $414,207)				416,289




Rights 0.0% of net assets

Telecommunication Services 0.0%
Contra Leap Wireless CVR *(b)(c)		735		1,852

Total Rights
(Cost $1,852)				1,852

14 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)

Short-Term Investment 0.0% of net assets

U.S. Treasury Obligation 0.0%
U.S. Treasury Bill
0.02%, 09/18/14 (e)		5,000		5,000

Total Short-Term Investment
(Cost $5,000)				5,000



End of Investments.


*		Non-income producing security.
(a)		Issuer is affiliated with the fund’s adviser.
(b)		Illiquid security. At the period end, the value of these amounted to $1,852 or 0.0% of net assets.
(c)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(d)		The rate shown is the 7-day yield.
(e)		The rate shown is the purchase yield.
(f)		All or a portion of this security is on loan. Securities on loan were valued at $347,866.


CVR —		Contingent Value Rights
ETF —		Exchange Traded Fund
REIT —		Real Estate Investment Trust

See financial notes 15

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings as of August 31, 2014 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)

	99	.7%	Common Stock		145,798,788		158,019,577
	0	.3%	Other Investment Companies		451,241		453,367
	0	.0%	Short-Term Investment		5,000		5,000


	100	.0%	Total Investments		146,255,029		158,477,944
	(0	.0)%	Other Assets and Liabilities, Net				(68,789	)


	100	.0%	Net Assets				158,409,155


	Number		Value
Security	of Shares		($)

Common Stock 99.7% of net assets

Automobiles & Components 1.0%
BorgWarner, Inc.		1,187		73,820
Dana Holding Corp.		1,550		36,006
Ford Motor Co.		25,308		440,612
General Motors Co.		10,486		364,913
Harley-Davidson, Inc.		1,435		91,209
Johnson Controls, Inc.		6,075		296,521
Lear Corp.		1,026		103,759
The Goodyear Tire & Rubber Co.		2,273		59,030
TRW Automotive Holdings Corp. *		1,142		109,963
Visteon Corp. *		544		55,047

				1,630,880

Banks 5.5%
Bank of America Corp.		120,624		1,940,840
BB&T Corp.		5,736		214,125
CIT Group, Inc.		864		41,437
Citigroup, Inc.		23,647		1,221,368
Comerica, Inc.		1,182		59,502
Fifth Third Bancorp		6,645		135,591
Hudson City Bancorp, Inc.		7,020		69,287
Huntington Bancshares, Inc.		6,159		60,635
JPMorgan Chase & Co.		33,812		2,010,123
KeyCorp		7,459		101,517
M&T Bank Corp.		756		93,464
New York Community Bancorp, Inc.		4,494		71,679
People’s United Financial, Inc.		2,375		35,506
Regions Financial Corp.		12,557		127,454
SunTrust Banks, Inc.		4,657		177,339
The PNC Financial Services Group, Inc.		3,494		296,117
U.S. Bancorp		11,260		476,073
Wells Fargo & Co.		29,832		1,534,558
Zions Bancorp		1,632		47,557

				8,714,172

Capital Goods 7.4%
3M Co.		4,655		670,320
AECOM Technology Corp. *		1,712		64,782
AGCO Corp.		1,284		62,711
Alliant Techsystems, Inc.		341		42,966
AMETEK, Inc.		756		40,023
Armstrong World Industries, Inc. *		485		27,975
Caterpillar, Inc.		4,998		545,132
Cummins, Inc.		1,329		192,851
Danaher Corp.		2,160		165,478
Deere & Co.		3,457		290,699
Dover Corp.		1,428		125,478
Eaton Corp. plc		2,382		166,287
EMCOR Group, Inc.		972		41,990
Emerson Electric Co.		6,668		426,885
Exelis, Inc.		3,160		54,320
Fastenal Co.		1,284		58,140
Flowserve Corp.		864		65,569
Fluor Corp.		2,440		180,292
Fortune Brands Home & Security, Inc.		597		25,796
Foster Wheeler AG		1,632		53,269
General Dynamics Corp.		3,667		451,958
General Electric Co.		79,565		2,067,099
Harsco Corp.		1,728		41,818
Honeywell International, Inc.		4,322		411,584
Hubbell, Inc., Class B		432		52,229
Illinois Tool Works, Inc.		2,996		264,277
Ingersoll-Rand plc		2,925		176,085
Jacobs Engineering Group, Inc. *		1,666		89,814
Joy Global, Inc.		1,092		68,960
KBR, Inc.		3,160		69,583
Kennametal, Inc.		708		31,725
L-3 Communications Holdings, Inc.		2,038		224,078
Lincoln Electric Holdings, Inc.		495		35,195
Lockheed Martin Corp.		2,800		487,200
Masco Corp.		3,149		73,907
MRC Global, Inc. *		1,089		27,029
Northrop Grumman Corp.		4,129		525,291
Oshkosh Corp.		1,188		59,020
Owens Corning		1,477		53,172
PACCAR, Inc.		2,619		164,499
Pall Corp.		540		45,560
Parker-Hannifin Corp.		1,446		167,013
Pentair plc		581		39,549
Precision Castparts Corp.		499		121,786
Quanta Services, Inc. *		1,623		58,980
Raytheon Co.		4,228		407,326
Rockwell Automation, Inc.		589		68,683
Rockwell Collins, Inc.		1,093		84,139
Roper Industries, Inc.		324		48,781
Snap-on, Inc.		324		40,484
SPX Corp.		649		67,528
Stanley Black & Decker, Inc.		1,070		97,905
Textron, Inc.		2,675		101,650
The Boeing Co.		3,171		402,083
The Timken Co.		869		39,357
Trinity Industries, Inc.		1,126		54,476

16 See financial notes

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
United Rentals, Inc. *		668		78,590
United Technologies Corp.		7,664		827,559
URS Corp.		1,926		116,677
W.W. Grainger, Inc.		402		98,972
WESCO International, Inc. *		561		47,118
Xylem, Inc.		1,296		48,289

				11,737,991

Commercial & Professional Services 0.9%
Cintas Corp.		1,188		78,574
Equifax, Inc.		756		59,543
Iron Mountain, Inc.		1,961		70,557
Manpowergroup, Inc.		1,629		126,378
Nielsen N.V.		876		41,163
Pitney Bowes, Inc.		3,648		98,715
R.R. Donnelley & Sons Co.		6,543		115,615
Republic Services, Inc.		2,703		106,309
Robert Half International, Inc.		1,569		78,780
The ADT Corp.		1,954		72,024
The Dun & Bradstreet Corp.		435		51,060
Tyco International Ltd.		5,918		264,061
Waste Management, Inc.		6,003		281,961

				1,444,740

Consumer Durables & Apparel 1.0%
Coach, Inc.		2,943		108,391
D.R. Horton, Inc.		2,072		44,921
Fossil Group, Inc. *		289		29,273
Garmin Ltd.		1,191		64,707
Harman International Industries, Inc.		394		45,342
Hasbro, Inc.		1,362		71,716
Jarden Corp. *		756		45,201
Leggett & Platt, Inc.		2,171		76,180
Mattel, Inc.		2,951		101,780
Mohawk Industries, Inc. *		433		63,227
Newell Rubbermaid, Inc.		2,112		70,794
NIKE, Inc., Class B		4,365		342,871
NVR, Inc. *		69		80,950
PVH Corp.		257		30,002
Ralph Lauren Corp.		467		79,016
Tupperware Brands Corp.		399		29,231
VF Corp.		1,865		119,584
Whirlpool Corp.		913		139,707

				1,542,893

Consumer Services 1.6%
Apollo Education Group, Inc. *		3,398		94,362
Brinker International, Inc.		1,142		55,844
Carnival Corp.		3,254		123,262
Chipotle Mexican Grill, Inc. *		70		47,506
Darden Restaurants, Inc.		1,926		91,138
DeVry Education Group, Inc.		862		37,006
Graham Holdings Co., Class B		70		50,316
H&R Block, Inc.		1,839		61,662
International Game Technology		3,010		50,749
Las Vegas Sands Corp.		586		38,975
Marriott International, Inc., Class A		1,510		104,794
McDonald’s Corp.		9,277		869,440
MGM Resorts International *		1,854		45,367
Royal Caribbean Cruises Ltd.		1,371		87,415
Service Corp. International		2,160		47,887
Starbucks Corp.		2,283		177,640
Starwood Hotels & Resorts Worldwide, Inc.		1,233		104,238
Wyndham Worldwide Corp.		1,199		97,047
Wynn Resorts Ltd.		398		76,766
Yum! Brands, Inc.		2,784		201,645

				2,463,059

Diversified Financials 3.1%
Ally Financial, Inc. *		775		19,065
American Express Co.		5,371		480,973
Ameriprise Financial, Inc.		1,087		136,701
Berkshire Hathaway, Inc., Class B *		8,486		1,164,704
BlackRock, Inc.		425		140,475
Capital One Financial Corp.		4,250		348,755
CME Group, Inc.		1,331		101,888
Discover Financial Services		2,484		154,927
ETRADE Financial Corp.		1,289		28,693
Franklin Resources, Inc.		3,045		172,103
Invesco Ltd.		2,354		96,137
Legg Mason, Inc.		1,581		77,975
Leucadia National Corp.		974		24,282
McGraw Hill Financial, Inc.		2,323		188,465
Moody’s Corp.		909		85,055
Morgan Stanley		7,196		246,895
Northern Trust Corp.		1,297		89,947
PHH Corp. *		1,836		43,991
State Street Corp.		2,160		155,585
T. Rowe Price Group, Inc.		1,409		114,122
The Bank of New York Mellon Corp.		6,156		241,192
The Charles Schwab Corp. (a)		4,564		130,120
The Goldman Sachs Group, Inc.		3,442		616,497
The NASDAQ OMX Group, Inc.		984		42,774

				4,901,321

Energy 15.9%
Alpha Natural Resources, Inc. *(c)		8,748		34,555
Anadarko Petroleum Corp.		3,038		342,352
Apache Corp.		3,608		367,403
Arch Coal, Inc. (c)		10,243		31,241
Baker Hughes, Inc.		4,107		283,958
Cameron International Corp. *		1,414		105,103
Chesapeake Energy Corp.		7,132		193,990
Chevron Corp.		31,351		4,058,387
Cimarex Energy Co.		377		54,725
ConocoPhillips		36,487		2,963,474
CONSOL Energy, Inc.		1,665		67,066
Denbury Resources, Inc.		2,324		40,019
Devon Energy Corp.		4,830		364,279
Diamond Offshore Drilling, Inc. (c)		1,453		63,845
Dresser-Rand Group, Inc. *		586		40,610
Energen Corp.		494		39,757
EOG Resources, Inc.		1,782		195,806
EQT Corp.		432		42,794
Exxon Mobil Corp.		74,543		7,414,047
FMC Technologies, Inc. *		1,177		72,786
Halliburton Co.		5,934		401,198
Helmerich & Payne, Inc.		469		49,268

See financial notes 17

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Hess Corp.		4,633		468,396
HollyFrontier Corp.		1,956		97,859
Kinder Morgan, Inc.		3,006		121,022
Marathon Oil Corp.		15,197		633,563
Marathon Petroleum Corp.		4,623		420,739
Murphy Oil Corp.		4,601		287,425
Nabors Industries Ltd.		4,553		123,887
National Oilwell Varco, Inc.		3,133		270,785
Newfield Exploration Co. *		1,827		81,886
Noble Energy, Inc.		1,236		89,165
Occidental Petroleum Corp.		7,203		747,167
Oceaneering International, Inc.		457		31,789
Oil States International, Inc. *		392		25,304
ONEOK, Inc.		1,531		107,476
Patterson-UTI Energy, Inc.		1,572		54,297
Peabody Energy Corp.		5,523		87,705
Phillips 66		16,157		1,405,982
Pioneer Natural Resources Co.		246		51,328
QEP Resources, Inc.		1,740		61,892
Schlumberger Ltd.		7,196		788,969
SEACOR Holdings, Inc. *		540		44,064
Seadrill Ltd.		2,743		102,177
Southwestern Energy Co. *		1,213		49,951
Spectra Energy Corp.		4,259		177,430
Tesoro Corp.		2,942		190,465
The Williams Cos., Inc.		4,340		257,970
Valero Energy Corp.		16,196		876,851
Western Refining, Inc.		899		41,830
World Fuel Services Corp.		2,782		123,465
WPX Energy, Inc. *		4,104		109,249

				25,156,751

Food & Staples Retailing 4.0%
Casey’s General Stores, Inc.		648		46,455
Costco Wholesale Corp.		5,516		667,877
CVS Caremark Corp.		17,816		1,415,481
Safeway, Inc.		9,220		320,672
SUPERVALU, Inc. *		11,216		107,113
Sysco Corp.		9,844		372,399
The Kroger Co.		9,793		499,247
United Natural Foods, Inc. *		474		30,473
Wal-Mart Stores, Inc.		27,820		2,100,410
Walgreen Co.		11,699		708,023
Whole Foods Market, Inc.		2,077		81,294

				6,349,444

Food, Beverage & Tobacco 5.1%
Altria Group, Inc.		17,506		754,158
Archer-Daniels-Midland Co.		13,022		649,277
Brown-Forman Corp., Class B		683		63,287
Bunge Ltd.		4,429		374,915
Campbell Soup Co.		1,986		89,012
Coca-Cola Enterprises, Inc.		3,131		149,599
ConAgra Foods, Inc.		5,992		192,942
Constellation Brands, Inc., Class A *		679		59,134
Dr. Pepper Snapple Group, Inc.		2,091		131,566
General Mills, Inc.		4,764		254,302
Hormel Foods Corp.		1,080		54,734
Ingredion, Inc.		688		54,875
Kellogg Co.		2,272		147,612
Kraft Foods Group, Inc.		4,780		281,542
Lorillard, Inc.		3,253		194,204
McCormick & Co., Inc. Non-Voting Shares		717		49,968
Mead Johnson Nutrition Co.		535		51,146
Molson Coors Brewing Co., Class B		982		72,619
Mondelez International, Inc., Class A		17,942		649,321
Monster Beverage Corp. *		394		34,834
PepsiCo, Inc.		12,134		1,122,274
Philip Morris International, Inc.		13,681		1,170,820
Reynolds American, Inc.		2,700		157,869
The Coca-Cola Co.		23,005		959,769
The Hershey Co.		568		51,927
The J.M. Smucker Co.		1,004		103,010
Tyson Foods, Inc., Class A		5,137		195,514

				8,070,230

Health Care Equipment & Services 5.9%
Abbott Laboratories		15,891		671,236
Aetna, Inc.		5,154		423,298
AmerisourceBergen Corp.		4,144		320,704
Baxter International, Inc.		4,735		355,030
Becton Dickinson & Co.		1,952		228,716
Boston Scientific Corp. *		9,961		126,305
C.R. Bard, Inc.		666		98,861
Cardinal Health, Inc.		6,277		462,615
CareFusion Corp. *		1,404		64,458
Catamaran Corp. *		505		23,796
Cigna Corp.		1,422		134,521
Community Health Systems, Inc. *		2,140		116,159
Covidien plc		2,938		255,107
DaVita HealthCare Partners, Inc. *		1,080		80,654
DENTSPLY International, Inc.		864		41,217
Express Scripts Holding Co. *		3,669		271,249
HCA Holdings, Inc. *		5,412		377,866
Health Net, Inc. *		3,165		149,388
Henry Schein, Inc. *		648		77,559
Humana, Inc.		2,461		316,829
Intuitive Surgical, Inc. *		97		45,591
Laboratory Corp. of America Holdings *		658		70,557
LifePoint Hospitals, Inc. *		756		56,549
Magellan Health, Inc. *		648		36,197
McKesson Corp.		3,204		624,876
Medtronic, Inc.		8,058		514,503
Omnicare, Inc.		1,249		79,649
Owens & Minor, Inc.		1,819		62,574
Patterson Cos., Inc.		1,080		43,492
Quest Diagnostics, Inc.		2,354		148,796
St. Jude Medical, Inc.		2,225		145,938
Stryker Corp.		2,112		175,951
Tenet Healthcare Corp. *		1,116		68,277
UnitedHealth Group, Inc.		13,992		1,212,827
Universal Health Services, Inc., Class B		611		69,923
Varian Medical Systems, Inc. *		698		59,344
WellCare Health Plans, Inc. *		648		42,677
WellPoint, Inc.		9,655		1,124,904
Zimmer Holdings, Inc.		1,677		166,543

				9,344,736

18 See financial notes

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Household & Personal Products 2.1%
Avon Products, Inc.		6,891		96,750
Church & Dwight Co., Inc.		648		44,219
Colgate-Palmolive Co.		5,539		358,539
Energizer Holdings, Inc.		432		52,497
Herbalife Ltd. (c)		692		35,278
Kimberly-Clark Corp.		2,933		316,764
The Clorox Co.		786		69,640
The Estee Lauder Cos., Inc., Class A		864		66,381
The Procter & Gamble Co.		26,883		2,234,246

				3,274,314

Insurance 3.2%
ACE Ltd.		1,945		206,812
Aflac, Inc.		3,424		209,686
American Financial Group, Inc.		835		50,075
American International Group, Inc.		7,412		415,517
Aon plc		1,454		126,731
Arch Capital Group Ltd. *		1,296		72,032
Assurant, Inc.		1,420		94,785
Axis Capital Holdings Ltd.		1,767		85,205
Cincinnati Financial Corp.		1,404		67,518
Everest Re Group Ltd.		444		72,745
FNF Group *		2,372		67,151
Genworth Financial, Inc., Class A *		4,681		66,423
HCC Insurance Holdings, Inc.		920		46,129
Lincoln National Corp.		1,689		92,962
Loews Corp.		3,254		142,330
Marsh & McLennan Cos., Inc.		3,218		170,876
MetLife, Inc.		4,950		270,963
PartnerRe Ltd.		756		84,438
Principal Financial Group, Inc.		1,512		82,086
Prudential Financial, Inc.		3,124		280,223
Reinsurance Group of America, Inc.		555		46,054
RenaissanceRe Holdings Ltd.		696		71,263
The Allstate Corp.		4,989		306,774
The Chubb Corp.		3,799		349,318
The Hartford Financial Services Group, Inc.		5,740		212,667
The Progressive Corp.		8,100		202,662
The Travelers Cos., Inc.		8,530		807,876
Torchmark Corp.		1,296		70,697
Unum Group		3,103		112,546
W.R. Berkley Corp.		1,436		69,431
White Mountains Insurance Group Ltd.		72		45,665
XL Group plc		2,063		70,513

				5,070,153

Materials 4.0%
Air Products & Chemicals, Inc.		1,585		211,138
Airgas, Inc.		544		60,047
Albemarle Corp.		600		38,148
Alcoa, Inc.		23,541		391,016
Allegheny Technologies, Inc.		1,742		73,460
AptarGroup, Inc.		540		34,641
Ashland, Inc.		591		63,367
Avery Dennison Corp.		1,249		60,114
Ball Corp.		1,651		105,829
Bemis Co., Inc.		1,323		53,899
Celanese Corp., Series A		1,080		67,543
CF Industries Holdings, Inc.		371		95,596
Cliffs Natural Resources, Inc. (c)		3,782		56,995
Commercial Metals Co.		2,941		50,820
Crown Holdings, Inc. *		790		38,133
Domtar Corp.		1,762		65,705
E.I. du Pont de Nemours & Co.		5,638		372,728
Eastman Chemical Co.		1,205		99,376
Ecolab, Inc.		688		78,996
FMC Corp.		648		42,859
Freeport-McMoRan, Inc.		13,861		504,125
Huntsman Corp.		2,376		63,891
International Flavors & Fragrances, Inc.		464		47,138
International Paper Co.		4,890		236,920
LyondellBasell Industries N.V., Class A		3,671		419,779
MeadWestvaco Corp.		2,108		90,644
Monsanto Co.		2,355		272,356
Newmont Mining Corp.		8,160		221,054
Nucor Corp.		4,756		258,346
Owens-Illinois, Inc. *		1,950		60,041
Packaging Corp. of America		580		39,434
PPG Industries, Inc.		881		181,363
Praxair, Inc.		1,946		255,996
Reliance Steel & Aluminum Co.		1,231		86,072
Rock-Tenn Co., Class A		694		34,117
Rockwood Holdings, Inc.		453		36,684
RPM International, Inc.		1,080		50,900
Sealed Air Corp.		1,636		59,060
Sigma-Aldrich Corp.		648		67,392
Sonoco Products Co.		1,296		53,343
Southern Copper Corp.		1,777		58,303
Steel Dynamics, Inc.		3,564		82,827
The Dow Chemical Co.		10,455		559,865
The Mosaic Co.		3,677		175,614
The Sherwin-Williams Co.		342		74,594
The Valspar Corp.		619		49,990
United States Steel Corp.		3,964		153,209
Vulcan Materials Co.		972		61,605

				6,315,072

Media 3.6%
Cablevision Systems Corp., Class A		4,228		78,260
CBS Corp., Class B Non-Voting Shares		4,304		255,184
Charter Communications, Inc., Class A *		540		84,710
Comcast Corp., Class A		15,622		854,992
DIRECTV *		6,982		603,594
Discovery Communications, Inc., Class A *		1,229		53,732
Discovery Communications, Inc., Class C *		1,229		52,810
DISH Network Corp., Class A *		1,182		76,605
Gannett Co., Inc.		3,277		110,632
News Corp., Class A *		1,459		25,715
Omnicom Group, Inc.		2,426		174,696
Scripps Networks Interactive, Inc., Class A		484		38,580
The Interpublic Group of Cos., Inc.		2,949		57,594
The Walt Disney Co.		11,877		1,067,505

See financial notes 19

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Thomson Reuters Corp. (c)		3,959		150,046
Time Warner Cable, Inc.		2,718		402,074
Time Warner, Inc.		11,775		907,028
Twenty-First Century Fox, Inc., Class A		11,877		420,683
Viacom, Inc., Class B		4,124		334,663

				5,749,103

Pharmaceuticals, Biotechnology & Life Sciences 5.6%
AbbVie, Inc.		6,321		349,425
Actavis plc *		985		223,575
Agilent Technologies, Inc.		1,954		111,691
Allergan, Inc.		816		133,563
Amgen, Inc.		6,238		869,452
Biogen Idec, Inc. *		374		128,297
Bristol-Myers Squibb Co.		10,854		549,755
Celgene Corp. *		1,262		119,915
Covance, Inc. *		388		32,165
Eli Lilly & Co.		9,095		578,078
Endo International plc *		592		37,716
Gilead Sciences, Inc. *		4,224		454,418
Hospira, Inc. *		1,252		67,283
Johnson & Johnson		19,125		1,983,836
Merck & Co., Inc.		19,046		1,144,855
Mettler-Toledo International, Inc. *		143		38,679
Mylan, Inc. *		1,404		68,234
Pfizer, Inc.		60,455		1,776,773
Thermo Fisher Scientific, Inc.		1,620		194,740
Waters Corp. *		432		44,682
Zoetis, Inc.		943		33,420

				8,940,552

Real Estate 1.1%
American Capital Agency Corp.		1,075		25,424
American Tower Corp.		644		63,498
Annaly Capital Management, Inc.		13,293		158,187
Apartment Investment & Management Co., Class A		1,512		51,816
AvalonBay Communities, Inc.		324		49,928
Boston Properties, Inc.		610		74,066
Crown Castle International Corp.		767		60,984
Equity Residential		1,416		94,121
General Growth Properties, Inc.		1,748		42,948
HCP, Inc.		1,844		79,901
Health Care REIT, Inc.		663		44,806
Hospitality Properties Trust		1,404		41,320
Host Hotels & Resorts, Inc.		3,996		91,189
Kimco Realty Corp.		1,856		43,597
Plum Creek Timber Co., Inc.		1,188		48,268
Prologis, Inc.		1,040		42,578
Public Storage		443		77,605
Rayonier, Inc.		811		27,793
Simon Property Group, Inc.		867		147,416
The Macerich Co.		494		32,253
Ventas, Inc.		927		60,978
Vornado Realty Trust		972		102,906
Weyerhaeuser Co.		10,058		341,469

				1,803,051

Retailing 4.6%
Aaron’s, Inc.		1,301		33,332
Abercrombie & Fitch Co., Class A		1,636		68,385
Advance Auto Parts, Inc.		576		78,578
Amazon.com, Inc. *		432		146,465
American Eagle Outfitters, Inc.		5,065		71,315
AutoNation, Inc. *		769		41,718
AutoZone, Inc. *		120		64,661
Bed Bath & Beyond, Inc. *		2,360		151,654
Best Buy Co., Inc.		9,825		313,319
Big Lots, Inc.		1,990		92,237
CarMax, Inc. *		1,082		56,697
Core-Mark Holding Co., Inc.		1,198		57,696
CST Brands, Inc.		1,011		35,223
Dick’s Sporting Goods, Inc.		761		34,298
Dillard’s, Inc., Class A		514		58,760
Dollar General Corp. *		2,155		137,898
Dollar Tree, Inc. *		1,750		93,844
Expedia, Inc.		910		78,169
Family Dollar Stores, Inc.		972		77,595
Foot Locker, Inc.		1,787		100,269
GameStop Corp., Class A		2,504		105,669
Genuine Parts Co.		1,729		151,702
Guess?, Inc.		1,125		26,370
J.C. Penney Co., Inc. *(c)		14,802		159,862
Kohl’s Corp.		5,284		310,646
L Brands, Inc.		1,838		117,356
Liberty Interactive Corp., Class A *		4,838		142,818
Lowe’s Cos., Inc.		15,087		792,218
Macy’s, Inc.		4,018		250,281
Murphy USA, Inc. *		870		47,389
Nordstrom, Inc.		1,740		120,495
O’Reilly Automotive, Inc. *		540		84,229
PetSmart, Inc.		1,150		82,306
Rent-A-Center, Inc.		1,758		48,978
Ross Stores, Inc.		1,284		96,839
Sears Holdings Corp. *(c)		2,423		84,320
Signet Jewelers Ltd.		589		69,425
Staples, Inc.		21,113		246,600
Target Corp.		12,712		763,610
The Gap, Inc.		4,538		209,429
The Home Depot, Inc.		11,235		1,050,472
The Priceline Group, Inc. *		44		54,750
The TJX Cos., Inc.		5,136		306,157
Tiffany & Co.		678		68,437
Tractor Supply Co.		648		43,384
Urban Outfitters, Inc. *		985		39,193
Williams-Sonoma, Inc.		864		56,825

				7,321,873

Semiconductors & Semiconductor Equipment 2.7%
Altera Corp.		1,523		53,823
Analog Devices, Inc.		2,140		109,397
Applied Materials, Inc.		11,641		268,965
Avago Technologies Ltd.		690		56,642
Broadcom Corp., Class A		4,066		160,119
Intel Corp.		67,761		2,366,214
KLA-Tencor Corp.		1,298		99,193
Lam Research Corp.		1,079		77,591
Linear Technology Corp.		1,305		58,868

20 See financial notes

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Marvell Technology Group Ltd.		4,536		63,096
Maxim Integrated Products, Inc.		2,277		70,336
Microchip Technology, Inc.		1,296		63,284
Micron Technology, Inc. *		5,326		173,628
NVIDIA Corp.		3,277		63,738
Texas Instruments, Inc.		10,531		507,384
Xilinx, Inc.		1,526		64,473

				4,256,751

Software & Services 6.6%
Accenture plc, Class A		3,616		293,113
Activision Blizzard, Inc.		2,295		54,024
Adobe Systems, Inc. *		2,076		149,264
Alliance Data Systems Corp. *		230		60,867
Amdocs Ltd.		1,651		77,762
AOL, Inc. *		2,247		97,115
Autodesk, Inc. *		972		52,138
Automatic Data Processing, Inc.		2,833		236,499
Booz Allen Hamilton Holding Corp.		334		7,408
Broadridge Financial Solutions, Inc.		1,080		45,943
CA, Inc.		2,592		73,198
CACI International, Inc., Class A *		430		31,012
Citrix Systems, Inc. *		663		46,582
Cognizant Technology Solutions Corp., Class A *		1,421		64,982
Computer Sciences Corp.		2,636		157,606
CoreLogic, Inc. *		2,610		73,785
eBay, Inc. *		4,725		262,238
Electronic Arts, Inc. *		977		36,970
Facebook, Inc., Class A *		498		37,260
Fidelity National Information Services, Inc.		2,378		134,952
Fiserv, Inc. *		1,758		113,338
Google, Inc., Class A *		486		283,027
Google, Inc., Class C *		492		281,227
IAC/InterActiveCorp		903		62,840
International Business Machines Corp.		11,367		2,185,874
Intuit, Inc.		1,425		118,532
Leidos Holdings, Inc.		1,862		70,104
MasterCard, Inc., Class A		2,376		180,125
Microsoft Corp.		73,489		3,338,605
Oracle Corp.		18,905		785,125
Paychex, Inc.		2,059		85,757
Science Applications International Corp.		158		7,287
Symantec Corp.		7,070		171,660
Teradata Corp. *		793		36,216
The Western Union Co.		7,187		125,557
Total System Services, Inc.		1,620		50,965
Visa, Inc., Class A		679		144,301
Xerox Corp.		18,702		258,275
Yahoo! Inc. *		3,056		117,687

				10,409,220

Technology Hardware & Equipment 4.8%
Amphenol Corp., Class A		759		78,185
Anixter International, Inc.		443		39,529
Apple, Inc.		15,197		1,557,693
Arrow Electronics, Inc. *		2,257		140,498
Avnet, Inc.		3,026		134,687
Cisco Systems, Inc.		47,080		1,176,529
Corning, Inc.		10,623		221,596
EMC Corp.		10,716		316,443
Harris Corp.		1,330		94,949
Hewlett-Packard Co.		62,916		2,390,808
Ingram Micro, Inc., Class A *		6,930		199,792
Jabil Circuit, Inc.		3,876		83,644
Juniper Networks, Inc.		4,569		105,955
Lexmark International, Inc., Class A		1,306		66,031
Motorola Solutions, Inc.		2,747		163,172
NetApp, Inc.		1,296		54,639
QUALCOMM, Inc.		4,978		378,826
SanDisk Corp.		895		87,674
SYNNEX Corp. *		579		40,379
Tech Data Corp. *		2,377		160,448
Vishay Intertechnology, Inc.		3,103		49,648
Western Digital Corp.		1,354		139,476

				7,680,601

Telecommunication Services 4.1%
AT&T, Inc.		92,662		3,239,464
CenturyLink, Inc.		6,675		273,608
Frontier Communications Corp.		23,170		157,556
Sprint Corp. *		30,146		169,119
Telephone & Data Systems, Inc.		2,630		69,274
Verizon Communications, Inc.		47,936		2,388,172
Windstream Holdings, Inc.		13,564		153,273

				6,450,466

Transportation 1.7%
Avis Budget Group, Inc. *		1,864		125,839
C.H. Robinson Worldwide, Inc.		2,247		153,380
CSX Corp.		11,586		358,123
Expeditors International of Washington, Inc.		1,855		76,612
FedEx Corp.		3,234		478,244
Hertz Global Holdings, Inc. *		3,780		111,699
J.B. Hunt Transport Services, Inc.		540		40,797
Kansas City Southern		280		32,301
Norfolk Southern Corp.		2,366		253,162
Ryder System, Inc.		1,007		90,972
Union Pacific Corp.		5,146		541,719
United Parcel Service, Inc., Class B		4,173		406,158

				2,669,006

Utilities 4.2%
AES Corp.		11,169		169,545
AGL Resources, Inc.		864		46,060
Alliant Energy Corp.		1,188		69,486
Ameren Corp.		4,026		161,000
American Electric Power Co., Inc.		5,620		301,794
American Water Works Co., Inc.		1,215		61,491
Atmos Energy Corp.		1,296		65,526
Calpine Corp. *		3,448		81,959
CenterPoint Energy, Inc.		5,243		130,236
CMS Energy Corp.		2,727		83,283
Consolidated Edison, Inc.		3,789		219,345
Dominion Resources, Inc.		5,782		406,012
DTE Energy Co.		2,161		169,098

See financial notes 21

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Duke Energy Corp.		5,031		372,244
Edison International		4,000		236,560
Entergy Corp.		4,012		310,569
Exelon Corp.		14,588		487,531
FirstEnergy Corp.		8,201		280,802
Great Plains Energy, Inc.		1,620		41,585
Integrys Energy Group, Inc.		1,312		89,072
MDU Resources Group, Inc.		2,055		64,342
National Fuel Gas Co.		540		41,278
NextEra Energy, Inc.		3,256		320,553
NiSource, Inc.		2,943		116,749
Northeast Utilities		1,761		80,812
NRG Energy, Inc.		4,365		134,355
OGE Energy Corp.		1,712		64,234
Pepco Holdings, Inc.		4,542		125,178
PG&E Corp.		5,751		267,306
Pinnacle West Capital Corp.		1,391		79,217
PPL Corp.		5,857		202,828
Public Service Enterprise Group, Inc.		7,150		267,338
SCANA Corp.		1,530		79,468
Sempra Energy		2,002		212,152
TECO Energy, Inc.		3,745		67,785
The Southern Co.		9,159		406,660
UGI Corp.		1,296		68,662
Vectren Corp.		1,012		41,725
Westar Energy, Inc.		1,220		45,055
Wisconsin Energy Corp.		1,546		70,080
Xcel Energy, Inc.		5,748		184,223

				6,723,198

Total Common Stock
(Cost $145,798,788)				158,019,577




Other Investment Companies 0.3% of net assets

Equity Fund 0.0%
iShares Core S&P 500 ETF		250		50,490

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b)		126,046		126,046

Securities Lending Collateral 0.2%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b)		276,831		276,831

Total Other Investment Companies
(Cost $451,241)				453,367



	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)

Short-Term Investment 0.0% of net assets

U.S. Treasury Obligation 0.0%
U.S. Treasury Bill
0.02%, 09/18/14 (d)		5,000		5,000

Total Short-Term Investment
(Cost $5,000)				5,000



End of Investments.


*		Non-income producing security.
(a)		Issuer is affiliated with the fund’s adviser.
(b)		The rate shown is the 7-day yield.
(c)		All or a portion of this security is on loan. Securities on loan were valued at $286,168.
(d)		The rate shown is the purchase yield.


ETF —		Exchange Traded Fund
REIT —		Real Estate Investment Trust

22 See financial notes

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings as of August 31, 2014 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)

	99	.7%	Common Stock		86,047,088		90,933,975
	1	.5%	Other Investment Companies		1,386,093		1,387,815
	0	.0%	Rights		14,969		14,969


	101	.2%	Total Investments		87,448,150		92,336,759
	(1	.2)%	Other Assets and Liabilities, Net				(1,134,446	)


	100	.0%	Net Assets				91,202,313


	Number		Value
Security	of Shares		($)

Common Stock 99.7% of net assets

Automobiles & Components 0.8%
Cooper Tire & Rubber Co.		4,888		150,697
Drew Industries, Inc.		1,057		46,920
Gentex Corp.		4,666		137,880
Modine Manufacturing Co. *		990		14,078
Standard Motor Products, Inc.		264		9,929
Superior Industries International, Inc.		3,038		59,089
Tenneco, Inc. *		1,742		111,627
Thor Industries, Inc.		3,171		170,315
Tower International, Inc. *		330		11,065

				711,600

Banks 4.4%
Associated Banc-Corp.		8,456		153,730
Astoria Financial Corp.		6,078		79,439
BancorpSouth, Inc.		4,030		85,315
Bank of Hawaii Corp.		2,576		149,537
BankUnited, Inc.		1,981		62,501
BOK Financial Corp.		990		66,706
Capitol Federal Financial, Inc.		6,144		75,878
Cathay General Bancorp		2,180		56,767
City National Corp.		1,388		105,321
Commerce Bancshares, Inc.		2,972		137,098
Community Bank System, Inc.		1,133		40,040
Cullen/Frost Bankers, Inc.		1,718		135,035
CVB Financial Corp.		3,105		48,252
East West Bancorp, Inc.		3,039		105,879
EverBank Financial Corp.		726		13,707
F.N.B. Corp.		5,945		73,480
First Citizens BancShares, Inc., Class A		101		23,209
First Financial Bancorp		2,611		43,369
First Financial Bankshares, Inc. (d)		330		9,699
First Horizon National Corp.		12,196		148,303
First Niagara Financial Group, Inc.		14,005		121,844
First Republic Bank		1,849		90,416
FirstMerit Corp.		4,827		83,193
Fulton Financial Corp.		8,931		103,019
Glacier Bancorp, Inc.		2,048		55,747
Hancock Holding Co.		2,048		68,076
Iberiabank Corp.		132		8,613
International Bancshares Corp.		2,733		72,042
MB Financial, Inc.		1,915		54,175
National Penn Bancshares, Inc.		1,123		11,230
NBT Bancorp, Inc.		1,981		47,564
Northwest Bancshares, Inc.		5,332		67,237
Old National Bancorp		3,369		44,100
Popular, Inc. *		8,852		274,058
Prosperity Bancshares, Inc.		1,116		67,406
Provident Financial Services, Inc.		3,171		53,939
Signature Bank *		417		49,398
Susquehanna Bancshares, Inc.		6,672		68,855
SVB Financial Group *		635		70,688
Synovus Financial Corp.		6,804		164,317
TCF Financial Corp.		9,913		156,625
Trustmark Corp.		3,435		81,530
UMB Financial Corp.		994		57,404
Umpqua Holdings Corp.		3,171		55,397
United Bankshares, Inc.		2,312		76,180
Valley National Bancorp		12,684		126,840
Washington Federal, Inc.		4,427		96,287
Webster Financial Corp.		2,974		87,733
Westamerica Bancorp		1,189		57,512
Wintrust Financial Corp.		1,057		49,224

				4,033,914

Capital Goods 11.4%
A.O. Smith Corp.		2,114		103,755
AAR Corp.		3,462		95,897
Actuant Corp., Class A		2,708		91,341
Acuity Brands, Inc.		1,342		166,247
Aegion Corp. *		2,378		58,641
Air Lease Corp.		264		10,006
Aircastle Ltd.		5,771		110,341
Albany International Corp., Class A		1,453		54,589
Allegion plc		990		50,916
Allison Transmission Holdings, Inc.		990		30,373
American Science & Engineering, Inc.		198		11,464
Apogee Enterprises, Inc.		1,981		72,326
Applied Industrial Technologies, Inc.		3,369		164,104
Astec Industries, Inc.		1,601		66,506
AZZ, Inc.		264		12,234
B/E Aerospace, Inc. *		1,783		151,091
Barnes Group, Inc.		2,642		90,462
Beacon Roofing Supply, Inc. *		2,510		71,585
Briggs & Stratton Corp.		6,076		122,371
Carlisle Cos., Inc.		2,708		224,493
Chart Industries, Inc. *		620		41,472
Chicago Bridge & Iron Co. N.V.		2,576		163,370
CIRCOR International, Inc.		726		51,684
CLARCOR, Inc.		2,170		137,166
Colfax Corp. *		198		12,595
Comfort Systems USA, Inc.		990		15,048
Crane Co.		2,180		151,706
Cubic Corp.		1,057		47,184

See financial notes 23

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Curtiss-Wright Corp.		2,378		170,835
DigitalGlobe, Inc. *		1,210		36,748
Donaldson Co., Inc.		4,854		203,188
Dycom Industries, Inc. *		2,874		89,698
Encore Wire Corp.		1,849		78,490
EnerSys		1,981		127,358
Engility Holdings, Inc. *		594		20,873
EnPro Industries, Inc. *		792		53,777
ESCO Technologies, Inc.		1,472		52,992
Esterline Technologies Corp. *		1,123		131,649
Franklin Electric Co., Inc.		1,387		52,651
GATX Corp.		3,567		236,385
Generac Holdings, Inc. *		1,651		76,805
General Cable Corp.		7,795		167,359
Graco, Inc.		1,717		131,969
GrafTech International Ltd. *		9,117		79,591
Granite Construction, Inc.		4,558		160,761
Griffon Corp.		1,057		13,181
H&E Equipment Services, Inc.		1,916		78,384
HEICO Corp.		1,128		58,442
Hexcel Corp. *		2,444		100,668
Hillenbrand, Inc.		2,708		90,556
Huntington Ingalls Industries, Inc.		2,180		222,600
Hyster-Yale Materials Handling, Inc.		198		15,264
IDEX Corp.		2,246		172,807
ITT Corp.		9,777		467,927
Kaman Corp.		1,717		69,813
Layne Christensen Co. *		4,216		47,978
Lennox International, Inc.		2,906		243,407
Lindsay Corp. (d)		132		10,267
Masonite International Corp. *		396		22,643
MasTec, Inc. *		2,180		66,490
Meritor, Inc. *		5,615		76,532
Moog, Inc., Class A *		1,981		140,453
MSC Industrial Direct Co., Inc., Class A		1,967		177,305
Mueller Industries, Inc.		5,747		168,042
Mueller Water Products, Inc., Class A		8,622		79,581
MYR Group, Inc. *		462		10,802
Navistar International Corp. *		3,501		132,023
Nordson Corp.		1,616		130,993
Orbital Sciences Corp. *		3,501		93,722
Polypore International, Inc. *		1,335		59,848
Quanex Building Products Corp.		3,567		64,420
Raven Industries, Inc.		1,255		33,458
RBC Bearings, Inc.		198		12,240
Regal-Beloit Corp.		2,319		164,811
Rexnord Corp. *		528		15,423
Rush Enterprises, Inc., Class A *		2,246		82,361
Simpson Manufacturing Co., Inc.		1,981		64,026
Spirit AeroSystems Holdings, Inc., Class A *		6,474		248,278
Standex International Corp.		132		9,851
TAL International Group, Inc. *		1,491		65,902
Teledyne Technologies, Inc. *		1,352		131,239
Tennant Co.		862		60,073
Terex Corp.		6,936		259,476
The Babcock & Wilcox Co.		4,278		124,276
The Greenbrier Cos., Inc.		1,189		85,037
The Manitowoc Co., Inc.		5,615		165,193
The Middleby Corp. *		798		68,812
The Toro Co.		2,840		174,745
Titan International, Inc.		3,162		45,849
TransDigm Group, Inc.		1,084		203,781
TriMas Corp. *		1,131		35,853
Triumph Group, Inc.		2,048		142,070
Tutor Perini Corp. *		6,078		181,611
Universal Forest Products, Inc.		2,840		134,474
Valmont Industries, Inc.		990		139,342
WABCO Holdings, Inc. *		1,717		177,194
Wabtec Corp.		1,783		148,631
Watsco, Inc.		1,388		128,376
Watts Water Technologies, Inc., Class A		1,585		100,315
Woodward, Inc.		2,813		146,923

				10,413,864

Commercial & Professional Services 4.6%
ABM Industries, Inc.		6,410		170,506
ACCO Brands Corp. *		2,246		17,362
Brady Corp., Class A		4,360		116,063
Clean Harbors, Inc. *		1,783		107,943
Copart, Inc. *		5,747		197,869
Covanta Holding Corp.		7,135		149,764
Deluxe Corp.		2,708		161,261
FTI Consulting, Inc. *		3,765		139,682
G&K Services, Inc., Class A		1,550		86,630
Healthcare Services Group, Inc.		2,642		72,206
Herman Miller, Inc.		3,567		106,011
HNI Corp.		3,963		150,237
Huron Consulting Group, Inc. *		726		43,908
ICF International, Inc. *		1,453		49,082
IHS, Inc., Class A *		801		114,118
Insperity, Inc.		2,180		64,332
Interface, Inc.		2,972		50,613
KAR Auction Services, Inc.		2,774		83,664
Kelly Services, Inc., Class A		7,254		121,214
Kforce, Inc.		3,039		60,993
Kimball International, Inc., Class B		1,123		17,833
Knoll, Inc.		3,765		68,862
Korn/Ferry International *		2,180		65,945
McGrath RentCorp		1,585		58,645
Mobile Mini, Inc.		264		10,341
MSA Safety, Inc.		1,259		69,698
Navigant Consulting, Inc. *		4,030		65,649
On Assignment, Inc. *		264		7,804
Quad/Graphics, Inc.		4,822		108,061
Resources Connection, Inc.		5,417		82,934
Rollins, Inc.		1,585		47,154
Steelcase, Inc., Class A		9,804		153,923
Stericycle, Inc. *		1,387		164,845
Team, Inc. *		264		10,536
Tetra Tech, Inc.		3,501		89,276
The Brink’s Co.		4,774		130,712
The Corporate Executive Board Co.		1,189		78,379
Towers Watson & Co., Class A		1,387		152,057
TrueBlue, Inc. *		3,501		95,017
UniFirst Corp.		726		70,386
United Stationers, Inc.		5,351		217,518
Verisk Analytics, Inc., Class A *		2,378		152,644
Viad Corp.		2,410		52,875
Waste Connections, Inc.		2,976		146,003
West Corp.		528		15,660

				4,196,215

24 See financial notes

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Consumer Durables & Apparel 2.9%
Arctic Cat, Inc.		816		30,208
Brunswick Corp.		1,486		63,898
Callaway Golf Co.		7,313		55,652
Carter’s, Inc.		1,849		153,060
Columbia Sportswear Co.		858		65,345
Crocs, Inc. *		4,360		67,362
Deckers Outdoor Corp. *		1,453		134,025
Ethan Allen Interiors, Inc.		2,048		51,671
G-III Apparel Group Ltd. *		860		70,985
Hanesbrands, Inc.		2,320		238,218
Helen of Troy Ltd. *		1,255		73,066
Iconix Brand Group, Inc. *		264		10,990
JAKKS Pacific, Inc. *(d)		7,663		51,955
KB Home		3,515		62,391
La-Z-Boy, Inc.		2,938		62,697
Lennar Corp., Class A		3,516		137,757
M.D.C Holdings, Inc.		2,312		67,071
Meritage Homes Corp. *		1,081		44,613
Michael Kors Holdings Ltd. *		802		64,256
Oxford Industries, Inc.		132		8,096
Polaris Industries, Inc.		1,364		198,298
PulteGroup, Inc.		7,531		144,746
Quiksilver, Inc. *		6,687		19,459
Skechers U.S.A., Inc., Class A *		2,327		135,827
Steven Madden Ltd. *		1,591		54,078
Sturm Ruger & Co., Inc. (d)		198		9,981
Tempur Sealy International, Inc. *		3,177		185,918
Toll Brothers, Inc. *		3,590		127,768
Under Armour, Inc., Class A *		1,548		105,821
Wolverine World Wide, Inc.		4,781		126,984

				2,622,196

Consumer Services 4.1%
Aramark		594		15,385
Bally Technologies, Inc. *		1,981		157,073
Bob Evans Farms, Inc.		3,286		142,678
Boyd Gaming Corp. *		6,366		67,798
Buffalo Wild Wings, Inc. *		330		48,757
Burger King Worldwide, Inc.		2,642		84,650
Capella Education Co.		865		56,320
Career Education Corp. *		29,927		164,299
Choice Hotels International, Inc.		1,255		67,971
Churchill Downs, Inc.		132		12,430
Cracker Barrel Old Country Store, Inc.		1,144		114,869
DineEquity, Inc.		726		60,403
Domino’s Pizza, Inc.		2,114		159,501
Dunkin’ Brands Group, Inc.		1,387		60,390
Hilton Worldwide Holdings, Inc. *		528		13,369
Houghton Mifflin Harcourt Co. *		792		15,206
Hyatt Hotels Corp., Class A *		1,585		96,828
International Speedway Corp., Class A		2,246		75,218
ITT Educational Services, Inc. *		6,474		54,576
Jack in the Box, Inc.		3,171		188,516
Life Time Fitness, Inc. *		1,753		80,813
Marriott Vacations Worldwide Corp. *		1,523		90,756
Matthews International Corp., Class A		1,984		91,562
Norwegian Cruise Line Holdings Ltd. *		462		15,389
Panera Bread Co., Class A *		792		118,752
Papa John’s International, Inc.		1,662		65,815
Penn National Gaming, Inc. *		8,918		100,684
Pinnacle Entertainment, Inc. *		2,444		61,076
Red Robin Gourmet Burgers, Inc. *		858		45,560
Regis Corp.		9,381		141,747
Ruby Tuesday, Inc. *		11,313		69,801
Scientific Games Corp., Class A *		1,255		12,738
SeaWorld Entertainment, Inc.		2,510		52,183
Six Flags Entertainment Corp.		1,783		65,044
Sonic Corp. *		4,426		93,433
Sotheby’s		1,798		73,376
Steiner Leisure Ltd. *		1,123		47,750
Strayer Education, Inc. *		3,058		185,682
Texas Roadhouse, Inc.		3,237		86,072
The Cheesecake Factory, Inc.		3,765		169,237
The Wendy’s Co.		17,837		145,372
Vail Resorts, Inc.		1,428		113,512
Weight Watchers International, Inc. (d)		5,417		133,746

				3,716,337

Diversified Financials 3.3%
Affiliated Managers Group, Inc. *		632		133,447
BGC Partners, Inc., Class A		1,651		12,498
Cash America International, Inc.		2,576		114,993
CBOE Holdings, Inc.		2,005		106,315
Eaton Vance Corp.		5,549		217,299
Ezcorp, Inc., Class A *		5,219		55,478
Federated Investors, Inc., Class B		7,531		231,126
First Cash Financial Services, Inc. *		990		57,182
Greenhill & Co., Inc.		1,783		87,403
Intercontinental Exchange, Inc.		1,586		299,754
Investment Technology Group, Inc. *		3,171		54,002
Janus Capital Group, Inc.		13,014		158,120
Lazard Ltd., Class A		2,180		119,159
LPL Financial Holdings, Inc.		2,180		106,144
MSCI, Inc. *		3,369		155,446
Nelnet, Inc., Class A		1,189		52,280
Portfolio Recovery Associates, Inc. *		198		11,252
Raymond James Financial, Inc.		3,171		173,264
Santander Consumer USA Holdings, Inc.		1,674		31,170
SEI Investments Co.		5,945		225,286
SLM Corp.		16,740		148,316
Stifel Financial Corp. *		1,189		56,929
TD Ameritrade Holding Corp.		5,879		194,654
Waddell & Reed Financial, Inc., Class A		2,444		133,198
World Acceptance Corp. *(d)		858		67,216

				3,001,931

Energy 6.3%
Alon USA Energy, Inc.		858		14,269
Atwood Oceanics, Inc. *		1,651		81,576
Basic Energy Services, Inc. *		2,510		60,767
Bill Barrett Corp. *		3,782		86,116
Bristow Group, Inc.		1,387		101,223
C&J Energy Services, Inc. *		330		9,468
Cabot Oil & Gas Corp.		3,765		126,278
CARBO Ceramics, Inc.		599		64,446
Cloud Peak Energy, Inc. *		5,704		89,610
Comstock Resources, Inc.		2,906		70,848
Concho Resources, Inc. *		1,084		153,971

See financial notes 25

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Continental Resources, Inc. *		66		10,645
CVR Energy, Inc. (d)		264		13,102
Delek US Holdings, Inc.		4,228		147,895
Dril-Quip, Inc. *		808		81,988
Energy Transfer Partners LP		1,054		60,544
Energy XXI Bermuda Ltd.		3,501		57,767
EXCO Resources, Inc. (d)		15,270		73,754
Exterran Holdings, Inc.		4,888		227,927
Forest Oil Corp. *		47,236		76,995
Forum Energy Technologies, Inc. *		396		13,484
Frontline Ltd. *(d)		15,525		31,826
Golar LNG Ltd.		264		16,632
Green Plains, Inc.		2,414		107,882
Gulfmark Offshore, Inc., Class A		1,123		45,156
Helix Energy Solutions Group, Inc. *		6,936		189,492
Hercules Offshore, Inc. *		14,138		47,645
Hornbeck Offshore Services, Inc. *		1,189		51,912
ION Geophysical Corp. *		11,594		39,999
Key Energy Services, Inc. *		16,780		105,714
Matrix Service Co. *		1,717		48,437
McDermott International, Inc. *		35,345		254,484
Newpark Resources, Inc. *		4,690		57,828
Nordic American Tankers Ltd. (d)		5,908		53,526
North Atlantic Drilling Ltd.		1,453		15,925
Parker Drilling Co. *		10,438		65,551
PBF Energy, Inc., Class A		462		13,125
PDC Energy, Inc. *		738		44,346
Penn Virginia Corp. *		6,210		93,274
Pioneer Energy Services Corp. *		5,285		81,283
Quicksilver Resources, Inc. *(d)		30,390		40,419
Range Resources Corp.		1,918		150,736
Rosetta Resources, Inc. *		1,223		61,150
Rowan Cos. plc, Class A		6,606		200,294
RPC, Inc.		594		13,525
SandRidge Energy, Inc. *(d)		21,360		111,926
SemGroup Corp., Class A		2,246		197,042
Ship Finance International Ltd.		3,919		77,557
SM Energy Co.		1,981		176,388
Stone Energy Corp. *		2,708		95,295
Superior Energy Services, Inc.		6,568		235,397
Swift Energy Co. *(d)		7,440		84,444
Targa Resources Corp.		1,189		165,925
Teekay Corp.		2,683		164,522
TETRA Technologies, Inc. *		6,211		73,290
Tidewater, Inc.		3,861		196,409
Ultra Petroleum Corp. *(d)		5,020		133,181
Unit Corp. *		2,972		195,587
W&T Offshore, Inc.		3,848		57,412
Whiting Petroleum Corp. *		3,039		281,594

				5,698,803

Food & Staples Retailing 0.7%
Ingles Markets, Inc., Class A		868		21,908
PriceSmart, Inc.		528		47,320
Rite Aid Corp. *		17,044		106,014
Roundy’s, Inc.		7,399		27,672
SpartanNash Co.		1,189		25,552
The Andersons, Inc.		2,192		150,744
The Fresh Market, Inc. *		1,321		44,055
The Pantry, Inc. *		10,702		226,561

				649,826

Food, Beverage & Tobacco 2.7%
B&G Foods, Inc.		1,453		43,881
Cal-Maine Foods, Inc.		1,057		83,619
Chiquita Brands International, Inc. *		11,825		164,367
Darling Ingredients, Inc. *		3,963		76,407
Dean Foods Co.		22,594		365,571
Flowers Foods, Inc.		7,993		156,503
Fresh Del Monte Produce, Inc.		5,681		181,451
J&J Snack Foods Corp.		594		56,258
Keurig Green Mountain, Inc.		1,090		145,319
Lancaster Colony Corp.		1,123		99,284
Pilgrim’s Pride Corp. *		2,444		73,002
Pinnacle Foods, Inc.		264		8,543
Post Holdings, Inc. *		2,114		78,155
Sanderson Farms, Inc.		1,695		158,177
Seaboard Corp. *		29		84,078
Snyder’s-Lance, Inc.		2,246		61,226
The Hain Celestial Group, Inc. *		792		77,901
The WhiteWave Foods Co. *		3,435		120,294
TreeHouse Foods, Inc. *		1,426		117,674
Universal Corp.		3,633		191,677
Vector Group Ltd.		3,575		85,407

				2,428,794

Health Care Equipment & Services 4.9%
Air Methods Corp. *		264		15,486
Alere, Inc. *		3,525		124,961
Align Technology, Inc. *		198		10,783
Allscripts Healthcare Solutions, Inc. *		3,963		58,553
Amedisys, Inc. *		6,738		140,959
Amsurg Corp. *		1,719		92,465
Analogic Corp.		594		42,887
BioScrip, Inc. *		1,321		11,176
Brookdale Senior Living, Inc. *		3,768		131,692
Centene Corp. *		2,840		221,889
Cerner Corp. *		3,567		205,673
Chemed Corp.		1,783		188,303
CONMED Corp.		1,453		57,393
Edwards Lifesciences Corp. *		2,005		199,016
Envision Healthcare Holdings, Inc. *		264		9,652
Gentiva Health Services, Inc. *		4,717		85,236
Greatbatch, Inc. *		1,061		48,350
Haemonetics Corp. *		2,023		72,201
Hanger, Inc. *		1,453		32,547
HealthSouth Corp.		2,446		96,348
Healthways, Inc. *		3,901		68,111
Hill-Rom Holdings, Inc.		3,963		173,619
Hologic, Inc. *		7,333		182,372
IDEXX Laboratories, Inc. *		1,529		189,550
Integra LifeSciences Holdings Corp. *		1,057		52,839
Invacare Corp.		5,553		85,183
Kindred Healthcare, Inc.		9,777		201,895
Masimo Corp. *		1,783		40,011
MEDNAX, Inc. *		2,906		166,368
Molina Healthcare, Inc. *		2,840		135,866
MWI Veterinary Supply, Inc. *		434		61,650
Orthofix International N.V. *		330		11,190
PharMerica Corp. *		4,558		113,449
Quality Systems, Inc.		660		10,336
ResMed, Inc. (d)		3,039		161,219

26 See financial notes

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Select Medical Holdings Corp.		5,084		71,278
Sirona Dental Systems, Inc. *		1,092		89,009
STERIS Corp.		3,501		197,071
Team Health Holdings, Inc. *		198		11,587
Teleflex, Inc.		1,783		195,203
The Cooper Cos., Inc.		930		151,618
The Ensign Group, Inc.		198		6,930
Thoratec Corp. *		330		8,250
Triple-S Management Corp., Class B *		1,189		22,757
VCA, Inc. *		3,904		159,088
West Pharmaceutical Services, Inc.		2,114		91,811

				4,503,830

Household & Personal Products 0.2%
Elizabeth Arden, Inc. *		1,651		28,232
Nu Skin Enterprises, Inc., Class A		1,663		74,370
Spectrum Brands Holdings, Inc.		797		69,020
WD-40 Co.		626		43,006

				214,628

Insurance 5.1%
Alleghany Corp. *		323		139,255
Allied World Assurance Co. Holdings AG		6,758		249,978
American Equity Investment Life Holding Co.		3,105		76,818
Argo Group International Holdings Ltd.		1,717		90,383
Arthur J. Gallagher & Co.		4,402		207,906
Aspen Insurance Holdings Ltd.		5,219		221,912
Assured Guaranty Ltd.		4,492		108,482
Brown & Brown, Inc.		3,897		127,120
CNO Financial Group, Inc.		12,684		226,409
Employers Holdings, Inc.		792		16,957
Endurance Specialty Holdings Ltd.		4,756		276,181
First American Financial Corp.		7,316		207,409
Horace Mann Educators Corp.		1,783		53,133
Infinity Property & Casualty Corp.		1,387		94,843
Kemper Corp.		5,326		193,600
Markel Corp. *		245		161,651
Mercury General Corp.		2,385		122,184
Montpelier Re Holdings Ltd.		2,576		81,015
Old Republic International Corp.		13,382		205,414
Platinum Underwriters Holdings Ltd.		3,633		226,954
Primerica, Inc.		4,624		232,726
ProAssurance Corp.		2,576		119,011
Protective Life Corp.		4,278		296,893
RLI Corp.		2,510		112,197
Safety Insurance Group, Inc.		924		51,005
Selective Insurance Group, Inc.		3,538		84,806
StanCorp Financial Group, Inc.		2,906		190,401
Stewart Information Services Corp.		1,719		55,386
Symetra Financial Corp.		3,112		75,746
The Hanover Insurance Group, Inc.		2,856		181,213
Validus Holdings Ltd.		4,954		193,751

				4,680,739

Materials 6.3%
A. Schulman, Inc.		3,173		123,208
AK Steel Holding Corp. *		25,699		280,633
Axiall Corp.		2,446		101,705
Berry Plastics Group, Inc. *		792		19,095
Boise Cascade Co. *		462		13,888
Cabot Corp.		3,963		217,093
Calgon Carbon Corp. *		528		11,215
Carpenter Technology Corp.		2,312		126,536
Century Aluminum Co. *		5,747		143,560
Chemtura Corp. *		6,682		164,978
Clearwater Paper Corp. *		1,321		91,413
Coeur Mining, Inc. *		6,870		54,410
Compass Minerals International, Inc.		1,398		124,520
Cytec Industries, Inc.		2,378		245,029
Eagle Materials, Inc.		858		87,439
Ferro Corp. *		7,333		98,849
Globe Specialty Metals, Inc.		528		10,845
Graphic Packaging Holding Co. *		12,816		163,917
Greif, Inc., Class A		2,746		131,506
H.B. Fuller Co.		3,041		143,049
Hecla Mining Co.		15,921		52,062
Innophos Holdings, Inc.		1,674		97,343
Innospec, Inc.		1,153		48,633
Intrepid Potash, Inc. *		726		11,130
Kaiser Aluminum Corp.		1,519		122,355
KapStone Paper & Packaging Corp. *		1,991		61,203
Koppers Holdings, Inc.		1,387		51,471
Kraton Performance Polymers, Inc. *		2,988		60,746
Louisiana-Pacific Corp. *		3,897		55,610
LSB Industries, Inc. *		330		13,216
Martin Marietta Materials, Inc.		1,981		259,432
Materion Corp.		2,006		65,456
Minerals Technologies, Inc.		1,849		115,784
Myers Industries, Inc.		2,404		47,383
NewMarket Corp.		366		148,922
Olin Corp.		5,620		153,370
OM Group, Inc.		2,708		72,033
P.H. Glatfelter Co.		3,303		82,344
PolyOne Corp.		2,774		108,796
Quaker Chemical Corp.		132		10,296
Resolute Forest Products, Inc. *		13,516		232,340
RTI International Metals, Inc. *		1,387		40,237
Schnitzer Steel Industries, Inc., Class A		7,507		207,869
Schweitzer-Mauduit International, Inc.		1,550		66,402
Sensient Technologies Corp.		2,642		148,243
Silgan Holdings, Inc.		2,976		149,842
Stepan Co.		1,255		60,604
Stillwater Mining Co. *		4,360		80,922
SunCoke Energy, Inc. *		3,237		77,720
The Scotts Miracle-Gro Co., Class A		3,039		175,441
Tredegar Corp.		1,915		39,851
Tronox Ltd., Class A		726		22,041
W.R. Grace & Co. *		990		98,040
Walter Energy, Inc. (d)		17,639		98,602
Westlake Chemical Corp.		1,158		112,476
Worthington Industries, Inc.		3,256		131,673

				5,732,776

Media 2.2%
AMC Networks, Inc., Class A *		924		57,819
Central European Media Enterprises Ltd., Class A *		4,030		9,994
Cinemark Holdings, Inc.		5,747		202,812

See financial notes 27

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Dex Media, Inc. *(d)		23,321		266,093
DreamWorks Animation SKG, Inc., Class A *		4,558		99,524
John Wiley & Sons, Inc., Class A		2,246		134,648
Lamar Advertising Co., Class A		3,567		187,196
Liberty Media Corp., Class A *		264		12,997
Liberty Media Corp., Class C *		528		25,592
Lions Gate Entertainment Corp.		1,783		57,787
Live Nation Entertainment, Inc. *		5,285		116,059
Loral Space & Communications, Inc. *		330		24,724
Meredith Corp.		2,576		119,990
Morningstar, Inc.		132		9,066
National CineMedia, Inc.		3,782		55,217
Regal Entertainment Group, Class A		6,780		142,719
Scholastic Corp.		4,624		162,025
Sinclair Broadcast Group, Inc., Class A (d)		2,046		59,436
Sirius XM Holdings, Inc. *		17,177		62,352
The Madison Square Garden Co., Class A *		1,255		83,909
The New York Times Co., Class A		8,456		104,685

				1,994,644

Pharmaceuticals, Biotechnology & Life Sciences 1.8%
Alexion Pharmaceuticals, Inc. *		355		60,098
Bio-Rad Laboratories, Inc., Class A *		930		111,842
Bruker Corp. *		2,510		50,351
Charles River Laboratories International, Inc. *		3,372		199,285
Cubist Pharmaceuticals, Inc. *		792		54,672
Illumina, Inc. *		858		153,891
Impax Laboratories, Inc. *		2,804		69,091
Mallinckrodt plc *		772		62,903
Myriad Genetics, Inc. *(d)		1,651		59,750
PAREXEL International Corp. *		1,321		74,557
PDL BioPharma, Inc. (d)		10,966		110,647
PerkinElmer, Inc.		4,294		192,586
Perrigo Co., plc		1,255		186,669
QIAGEN N.V. *		5,105		123,362
Quintiles Transnational Holdings, Inc. *		198		11,112
Techne Corp.		997		95,233
United Therapeutics Corp. *		474		55,851

				1,671,900

Real Estate 8.9%
AG Mortgage Investment Trust, Inc.		660		13,180
Alexandria Real Estate Equities, Inc.		1,727		136,537
American Campus Communities, Inc.		1,849		73,054
American Capital Mortgage Investment Corp.		1,057		21,753
Anworth Mortgage Asset Corp.		12,623		65,513
Ashford Hospitality Trust, Inc.		4,517		52,352
BioMed Realty Trust, Inc.		5,219		117,167
Brandywine Realty Trust		8,390		134,408
Camden Property Trust		2,246		168,091
Capstead Mortgage Corp.		6,236		82,440
CBL & Associates Properties, Inc.		7,333		139,327
CBRE Group, Inc., Class A *		6,041		191,983
Chimera Investment Corp.		37,066		122,688
Columbia Property Trust, Inc.		1,519		38,993
Corporate Office Properties Trust		4,294		121,864
Corrections Corp. of America		6,078		216,620
Cousins Properties, Inc.		4,030		51,141
CYS Investments, Inc.		8,126		76,628
DCT Industrial Trust, Inc.		8,887		70,652
DDR Corp.		7,820		142,480
DiamondRock Hospitality Co.		7,069		94,159
Digital Realty Trust, Inc.		3,171		206,908
Douglas Emmett, Inc.		3,831		109,452
Duke Realty Corp.		12,393		230,510
EastGroup Properties, Inc.		812		52,650
EPR Properties		1,743		99,194
Equity Commonwealth		6,210		166,925
Equity Lifestyle Properties, Inc.		1,321		60,356
Equity One, Inc.		462		10,903
Essex Property Trust, Inc.		1,123		217,244
Extra Space Storage, Inc.		1,256		66,191
Federal Realty Investment Trust		1,453		181,305
Franklin Street Properties Corp.		792		9,623
Glimcher Realty Trust		4,248		47,705
Government Properties Income Trust		462		11,097
Hatteras Financial Corp.		4,822		95,958
Healthcare Realty Trust, Inc.		2,972		74,181
Healthcare Trust of America, Inc., Class A		990		12,325
Hersha Hospitality Trust		1,783		12,107
Highwoods Properties, Inc.		2,915		124,033
Home Properties, Inc.		1,717		110,266
Inland Real Estate Corp.		3,699		38,507
Invesco Mortgage Capital, Inc.		4,162		73,334
Investors Real Estate Trust		1,123		9,579
iStar Financial, Inc. *		8,258		122,879
Jones Lang LaSalle, Inc.		1,849		247,045
Kilroy Realty Corp.		1,519		96,077
LaSalle Hotel Properties		2,510		91,740
Lexington Realty Trust		7,146		77,748
Liberty Property Trust		5,087		180,182
Mack-Cali Realty Corp.		8,192		173,179
Medical Properties Trust, Inc.		858		12,089
MFA Financial, Inc.		16,912		142,737
Mid-America Apartment Communities, Inc.		1,717		124,173
National Retail Properties, Inc.		2,418		89,805
NorthStar Realty Finance Corp.		2,312		42,795
Omega Healthcare Investors, Inc.		2,091		78,768
Pennsylvania Real Estate Investment Trust		3,567		71,911
PennyMac Mortgage Investment Trust		660		14,692
Piedmont Office Realty Trust, Inc., Class A		10,974		213,883
Post Properties, Inc.		1,255		69,050
Potlatch Corp.		1,864		79,556
PS Business Parks, Inc.		609		49,658
Realty Income Corp.		2,708		121,102
Redwood Trust, Inc.		4,294		83,175
Regency Centers Corp.		2,852		162,963
Retail Properties of America, Inc., Class A		6,078		96,154
RLJ Lodging Trust		2,666		79,473
Ryman Hospitality Properties, Inc.		1,272		63,282
Sabra Health Care REIT, Inc.		2,649		75,444
Senior Housing Properties Trust		4,624		107,878

28 See financial notes

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
SL Green Realty Corp.		1,552		169,711
Sovran Self Storage, Inc.		767		59,266
Starwood Property Trust, Inc.		2,246		53,567
Sun Communities, Inc.		879		47,141
Sunstone Hotel Investors, Inc.		5,040		73,433
Tanger Factory Outlet Centers, Inc.		1,811		63,222
Taubman Centers, Inc.		1,453		110,675
The Geo Group, Inc.		2,444		91,454
Two Harbors Investment Corp.		1,321		14,161
UDR, Inc.		6,820		204,054
Washington REIT		3,534		98,175
Weingarten Realty Investors		4,762		162,956
WP Carey, Inc.		1,123		76,678

				8,143,314

Retailing 5.2%
Aeropostale, Inc. *(d)		26,360		110,448
ANN, Inc. *		4,954		205,294
Asbury Automotive Group, Inc. *		1,783		124,239
Ascena Retail Group, Inc. *		7,135		124,078
Barnes & Noble, Inc. *		8,324		198,611
Brown Shoe Co., Inc.		4,239		126,492
Burlington Stores, Inc. *		792		28,251
Cabela’s, Inc. *		1,059		64,620
Chico’s FAS, Inc.		11,495		181,621
DSW, Inc., Class A		2,972		91,954
Express, Inc. *		5,285		91,642
Five Below, Inc. *		330		13,385
Fred’s, Inc., Class A		7,039		100,165
Genesco, Inc. *		1,651		130,924
GNC Holdings, Inc., Class A		2,708		102,769
Group 1 Automotive, Inc.		2,483		199,037
hhgregg, Inc. *		3,633		25,976
Hibbett Sports, Inc. *		1,133		51,472
HSN, Inc.		1,651		100,034
Lithia Motors, Inc., Class A		990		86,546
LKQ Corp. *		5,681		161,340
Lumber Liquidators Holdings, Inc. *		414		23,689
Monro Muffler Brake, Inc.		1,057		54,700
Netflix, Inc. *		335		160,009
Nutrisystem, Inc.		4,822		78,695
Office Depot, Inc. *		47,567		243,543
Outerwall, Inc. *(d)		1,453		85,625
Penske Automotive Group, Inc.		3,303		158,445
Pier 1 Imports, Inc.		3,831		60,377
Pool Corp.		1,717		97,285
Sally Beauty Holdings, Inc. *		3,171		88,407
Sears Hometown & Outlet Stores, Inc. *		2,906		55,737
Select Comfort Corp. *		2,480		55,478
Sonic Automotive, Inc., Class A		5,321		131,429
Stage Stores, Inc.		5,022		87,734
Stein Mart, Inc.		792		9,860
The Bon-Ton Stores, Inc.		3,699		39,061
The Buckle, Inc. (d)		2,048		100,721
The Cato Corp., Class A		2,444		84,733
The Children’s Place, Inc.		2,906		156,227
The Finish Line, Inc., Class A		4,504		133,453
The Men’s Wearhouse, Inc.		4,492		242,703
The Pep Boys-Manny, Moe & Jack *		7,130		79,286
TripAdvisor, Inc. *		618		61,238
Tuesday Morning Corp. *		792		13,923
Ulta Salon, Cosmetics & Fragrance, Inc. *		1,057		102,857
Vitamin Shoppe, Inc. *		1,255		49,183

				4,773,296

Semiconductors & Semiconductor Equipment 4.6%
Advanced Energy Industries, Inc. *		594		11,435
Advanced Micro Devices, Inc. *(d)		50,077		208,821
Amkor Technology, Inc. *		12,684		131,914
Atmel Corp. *		24,680		218,665
Brooks Automation, Inc.		6,408		72,667
Cabot Microelectronics Corp. *		1,453		62,334
Cirrus Logic, Inc. *		2,774		67,075
Cree, Inc. *		1,674		76,267
Cypress Semiconductor Corp. *		13,147		145,274
Diodes, Inc. *		1,657		42,171
Entegris, Inc. *		7,267		88,221
Fairchild Semiconductor International, Inc. *		9,988		175,289
First Solar, Inc. *		3,171		220,955
Freescale Semiconductor Ltd. *		594		12,504
GT Advanced Technologies, Inc. *(d)		7,993		142,355
Integrated Device Technology, Inc. *		8,918		146,701
International Rectifier Corp. *		3,435		135,339
Intersil Corp., Class A		12,156		182,887
Micrel, Inc.		4,492		56,285
Microsemi Corp. *		2,060		54,878
MKS Instruments, Inc.		3,348		113,631
OmniVision Technologies, Inc. *		3,804		103,126
ON Semiconductor Corp. *		20,522		200,295
Photronics, Inc. *		6,011		53,077
PMC-Sierra, Inc. *		8,786		64,841
Power Integrations, Inc.		198		11,836
RF Micro Devices, Inc. *		12,156		151,585
Silicon Laboratories, Inc. *		2,906		131,729
Skyworks Solutions, Inc.		3,567		202,106
Spansion, Inc., Class A *		4,360		97,228
SunEdison, Inc. *		12,882		283,791
Synaptics, Inc. *		1,123		92,198
Teradyne, Inc.		8,324		171,391
Tessera Technologies, Inc.		2,180		64,463
TriQuint Semiconductor, Inc. *		6,804		140,605
Veeco Instruments, Inc. *		1,915		67,734

				4,201,673

Software & Services 5.7%
ACI Worldwide, Inc. *		594		11,565
Acxiom Corp. *		3,968		73,587
Akamai Technologies, Inc. *		3,435		207,543
ANSYS, Inc. *		1,116		90,731
Cadence Design Systems, Inc. *		3,369		59,429
Compuware Corp.		15,987		149,478
Convergys Corp.		10,768		206,746
Conversant, Inc. *		4,426		121,892
CSG Systems International, Inc.		2,774		76,895
Digital River, Inc. *		3,312		50,574
DST Systems, Inc.		2,576		239,079
EarthLink Holdings Corp.		28,210		116,507
Equinix, Inc. *		635		138,595

See financial notes 29

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Euronet Worldwide, Inc. *		1,387		73,927
FactSet Research Systems, Inc.		1,321		168,295
Fair Isaac Corp.		2,378		138,328
FleetCor Technologies, Inc. *		408		58,625
Gartner, Inc. *		1,651		123,148
Genpact Ltd. *		5,417		94,256
Global Cash Access Holdings, Inc. *		5,813		45,400
Global Payments, Inc.		2,444		177,728
Heartland Payment Systems, Inc.		1,915		91,480
Informatica Corp. *		1,612		54,897
j2 Global, Inc.		1,193		63,766
Jack Henry & Associates, Inc.		2,250		130,072
Manhattan Associates, Inc. *		1,915		55,305
ManTech International Corp., Class A		3,501		101,459
MAXIMUS, Inc.		2,248		92,618
Mentor Graphics Corp.		2,312		50,425
MICROS Systems, Inc. *		1,922		130,638
Monster Worldwide, Inc. *		21,933		126,553
NeuStar, Inc., Class A *		3,171		93,513
Nuance Communications, Inc. *		4,624		78,654
Progress Software Corp. *		3,105		71,912
PTC, Inc. *		2,576		99,665
Rackspace Hosting, Inc. *		1,651		57,125
Red Hat, Inc. *		1,717		104,600
Rovi Corp. *		2,774		64,163
Salesforce.com, Inc. *		1,717		101,458
Sapient Corp. *		3,831		55,588
Solera Holdings, Inc.		1,123		68,458
Sykes Enterprises, Inc. *		3,699		77,457
Synopsys, Inc. *		3,699		151,289
Take-Two Interactive Software, Inc. *		3,897		91,618
TeleTech Holdings, Inc. *		1,915		51,418
TIBCO Software, Inc. *		5,702		118,830
Unisys Corp. *		4,096		95,887
Vantiv, Inc., Class A *		462		14,451
VeriFone Systems, Inc. *		2,134		74,519
VeriSign, Inc. *		3,794		216,543
Vistaprint N.V. *		1,387		66,964
VMware, Inc., Class A *		499		49,191
WebMD Health Corp. *		462		22,338
WEX, Inc. *		685		77,850

				5,223,032

Technology Hardware & Equipment 4.8%
ADTRAN, Inc.		3,780		87,242
ARRIS Group, Inc. *		4,426		135,480
Belden, Inc.		1,562		114,135
Benchmark Electronics, Inc. *		7,768		191,326
Brocade Communications Systems, Inc.		19,621		207,001
CDW Corp.		594		19,626
Checkpoint Systems, Inc. *		990		13,711
Cognex Corp. *		1,400		58,772
Coherent, Inc. *		1,255		80,910
CommScope Holding Co., Inc. *		792		20,402
Comtech Telecommunications Corp.		2,666		101,415
Diebold, Inc.		5,510		209,215
Dolby Laboratories, Inc., Class A *		1,915		89,201
EchoStar Corp., Class A *		1,529		77,107
Electronics For Imaging, Inc. *		1,849		81,430
Emulex Corp. *		8,060		44,169
F5 Networks, Inc. *		1,585		196,841
Fabrinet *		792		12,822
FEI Co.		594		49,920
Finisar Corp. *		2,418		49,110
FLIR Systems, Inc.		5,351		180,810
Insight Enterprises, Inc. *		7,135		187,222
InterDigital, Inc.		2,114		93,798
Itron, Inc. *		3,501		147,812
JDS Uniphase Corp. *		7,663		88,508
Knowles Corp. *		792		26,073
Littelfuse, Inc.		660		60,661
MTS Systems Corp.		726		51,604
National Instruments Corp.		3,039		100,743
NCR Corp. *		5,635		192,492
NETGEAR, Inc. *		2,048		68,034
OSI Systems, Inc. *		634		44,228
Plantronics, Inc.		1,860		88,778
Plexus Corp. *		3,435		141,488
Polycom, Inc. *		11,307		149,818
QLogic Corp. *		15,546		140,691
Riverbed Technology, Inc. *		528		9,947
Rofin-Sinar Technologies, Inc. *		2,357		56,474
Sanmina Corp. *		10,041		235,763
ScanSource, Inc. *		3,039		117,184
Trimble Navigation Ltd. *		3,570		118,738
TTM Technologies, Inc. *		1,585		12,125
ViaSat, Inc. *		735		41,851
Zebra Technologies Corp., Class A *		2,774		216,455

				4,411,132

Telecommunication Services 1.0%
Cincinnati Bell, Inc. *		29,927		109,832
Consolidated Communications Holdings, Inc.		3,435		83,745
Inteliquent, Inc.		726		8,857
Intelsat S.A. *		2,774		48,656
Level 3 Communications, Inc. *		4,360		196,025
NTELOS Holdings Corp. (d)		2,027		26,736
SBA Communications Corp., Class A *		1,255		138,414
Spok Holdings, Inc.		1,057		15,644
T-Mobile US, Inc. *		2,708		81,457
tw telecom, Inc. *		4,202		172,429
Vonage Holdings Corp. *		3,633		12,534

				894,329

Transportation 3.9%
Alaska Air Group, Inc.		4,492		208,159
Allegiant Travel Co.		419		51,478
AMERCO		249		69,175
American Airlines Group, Inc.		1,123		43,696
ArcBest Corp.		2,708		97,217
Atlas Air Worldwide Holdings, Inc. *		2,444		81,752
Con-way, Inc.		4,637		237,646
Copa Holdings S.A., Class A		792		97,400
Delta Air Lines, Inc.		4,624		183,018
Forward Air Corp.		1,453		67,259
Genesee & Wyoming, Inc., Class A *		528		51,918
Hawaiian Holdings, Inc. *		4,294		66,986
Heartland Express, Inc.		3,634		85,217
Hub Group, Inc., Class A *		2,777		120,772
JetBlue Airways Corp. *		17,507		214,111

30 See financial notes

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Kirby Corp. *		1,387		165,455
Knight Transportation, Inc.		4,030		102,161
Landstar System, Inc.		2,774		188,258
Matson, Inc.		4,756		128,365
Navios Maritime Holdings, Inc.		1,981		18,740
Old Dominion Freight Line, Inc. *		1,783		118,873
Republic Airways Holdings, Inc. *		10,478		106,352
Saia, Inc. *		1,397		66,316
SkyWest, Inc.		15,872		142,372
Southwest Airlines Co.		8,390		268,564
Spirit Airlines, Inc. *		264		18,583
Swift Transportation Co. *		2,972		62,947
United Continental Holdings, Inc. *		3,963		188,678
UTi Worldwide, Inc. *		13,080		120,074
Werner Enterprises, Inc.		5,309		132,194

				3,503,736

Utilities 3.9%
ALLETE, Inc.		1,997		97,194
American States Water Co.		1,471		47,513
Aqua America, Inc.		5,456	��	136,455
Atlantic Power Corp. (d)		20,348		80,578
Avista Corp.		4,492		145,810
Black Hills Corp.		2,246		120,678
California Water Service Group		2,378		57,928
Cleco Corp.		2,774		156,509
Dynegy, Inc. *		726		23,726
El Paso Electric Co.		2,863		112,630
Hawaiian Electric Industries, Inc. (d)		7,399		187,861
IDACORP, Inc.		2,510		142,367
ITC Holdings Corp.		3,567		133,227
MGE Energy, Inc.		1,809		72,776
New Jersey Resources Corp.		2,972		155,228
Northwest Natural Gas Co.		2,198		99,921
NorthWestern Corp.		2,542		122,728
Otter Tail Corp.		2,774		79,031
Piedmont Natural Gas Co., Inc.		4,756		177,874
PNM Resources, Inc.		5,747		150,629
Portland General Electric Co.		6,011		207,199
Questar Corp.		11,231		264,041
South Jersey Industries, Inc.		1,407		81,536
Southwest Gas Corp.		3,039		158,666
The Empire District Electric Co.		3,303		85,383
The Laclede Group, Inc.		2,232		110,372
UIL Holdings Corp.		2,906		108,249
WGL Holdings, Inc.		4,492		195,357

				3,511,466

Total Common Stock
(Cost $86,047,088)				90,933,975




Other Investment Companies 1.5% of net assets

Equity Fund 0.1%
iShares Russell 2000 ETF		600		69,936

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c)		89,027		89,027

Securities Lending Collateral 1.3%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c)		1,228,852		1,228,852

Total Other Investment Companies
(Cost $1,386,093)				1,387,815




Rights 0.0% of net assets

Telecommunication Services 0.0%
Contra Leap Wireless CVR *(a)(b)		5,940		14,969

Total Rights
(Cost $14,969)				14,969



End of Investments.


*		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 $14,969 or 0.0% of net assets.
(c)		The rate shown is the 7-day yield.
(d)		All or a portion of this security is on loan. Securities on loan were valued at $1,206,881.


ETF —		Exchange Traded Fund
REIT —		Real Estate Investment Trust

See financial notes 31

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings as of August 31, 2014 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)

	99	.2%	Common Stock		131,749,328		133,951,148
	0	.4%	Other Investment Companies		571,790		573,574
	0	.4%	Preferred Stock		562,673		516,572
	0	.0%	Rights		—		2,307


	100	.0%	Total Investments		132,883,791		135,043,601
	(0	.0)%	Other Assets and Liabilities, Net				(60,502	)


	100	.0%	Net Assets				134,983,099


	Number		Value
Security	of Shares		($)

Common Stock 99.2% of net assets

Australia 5.5%


Banks 1.5%
Australia & New Zealand Banking Group Ltd.		14,899		465,848
Commonwealth Bank of Australia		7,520		571,961
National Australia Bank Ltd.		15,463		509,081
Westpac Banking Corp.		15,416		505,227

				2,052,117


Capital Goods 0.1%
Leighton Holdings Ltd.		2,021		42,417
UGL Ltd.		5,170		31,431

				73,848


Commercial & Professional Services 0.1%
Brambles Ltd.		14,100		125,283
Downer EDI Ltd.		9,071		41,318

				166,601


Consumer Services 0.2%
Crown Resorts Ltd.		2,632		38,895
Tabcorp Holdings Ltd.		25,850		86,797
Tatts Group Ltd.		21,150		65,675

				191,367


Diversified Financials 0.1%
Macquarie Group Ltd.		1,980		107,965


Energy 0.3%
Caltex Australia Ltd.		3,760		100,192
Origin Energy Ltd.		7,990		116,056
Santos Ltd.		5,170		71,710
Woodside Petroleum Ltd.		3,196		127,640
WorleyParsons Ltd.		2,491		38,302

				453,900


Food & Staples Retailing 0.7%
Metcash Ltd.		25,850		67,939
Wesfarmers Ltd.		11,421		462,640
Woolworths Ltd.		11,515		389,442

				920,021


Food, Beverage & Tobacco 0.0%
Coca-Cola Amatil Ltd.		2,350		19,782


Health Care Equipment & Services 0.0%
Sonic Healthcare Ltd.		3,290		54,250


Insurance 0.4%
AMP Ltd.		19,740		108,561
Insurance Australia Group Ltd.		12,455		75,370
QBE Insurance Group Ltd.		14,335		154,455
Suncorp Group Ltd.		15,322		206,791

				545,177


Materials 1.3%
Amcor Ltd.		8,366		89,358
Arrium Ltd.		28,200		20,705
BHP Billiton Ltd.		29,281		1,004,263
BlueScope Steel Ltd. *		17,484		90,104
Boral Ltd.		9,776		50,381
Incitec Pivot Ltd.		20,445		59,279
Newcrest Mining Ltd. *		8,225		87,083
Orica Ltd.		4,465		85,610
Rio Tinto Ltd.		4,418		258,797

				1,745,580


Media 0.0%
Fairfax Media Ltd.		51,935		42,017


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
CSL Ltd.		1,598		110,407


Real Estate 0.2%
Lend Lease Group		5,875		78,577
Mirvac Group		24,393		41,865
Stockland		19,599		77,907
Westfield Corp.		16,027		114,224

				312,573


Software & Services 0.0%
Computershare Ltd.		2,444		28,162


Telecommunication Services 0.2%
Telstra Corp., Ltd.		49,350		256,633


Transportation 0.2%
Asciano Ltd.		9,400		55,213
Aurizon Holdings Ltd.		7,050		31,453
Qantas Airways Ltd. *		45,073		61,970
Toll Holdings Ltd.		11,374		63,509
Transurban Group		3,901		29,408

				241,553


Utilities 0.1%
AGL Energy Ltd.		5,243		69,143

				7,391,096

Austria 0.3%


Banks 0.1%
Erste Group Bank AG		4,841		124,535
Raiffeisen Bank International AG		940		24,144

				148,679

32 See financial notes

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Capital Goods 0.0%
Andritz AG		470		25,209


Energy 0.1%
OMV AG		3,149		121,947


Materials 0.1%
Voestalpine AG		2,256		97,023


Telecommunication Services 0.0%
Telekom Austria AG		6,909		64,796

				457,654

Belgium 0.9%


Banks 0.1%
KBC Groep N.V. *		1,520		86,843


Food & Staples Retailing 0.2%
Colruyt S.A.		940		44,946
Delhaize Group S.A.		3,392		237,024

				281,970


Food, Beverage & Tobacco 0.3%
Anheuser-Busch InBev N.V.		3,290		366,405


Insurance 0.1%
Ageas		2,820		94,887


Materials 0.1%
NV Bekaert S.A.		1,269		47,271
Solvay S.A.		517		81,549
Umicore S.A.		1,880		91,166

				219,986


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
UCB S.A.		611		59,314


Telecommunication Services 0.1%
Belgacom S.A.		2,914		104,153

				1,213,558

Canada 7.1%


Automobiles & Components 0.2%
Magna International, Inc. (d)		2,632		299,122


Banks 1.5%
Bank of Montreal		3,807		293,610
Canadian Imperial Bank of Commerce		2,303		220,608
National Bank of Canada		1,927		92,926
Royal Bank of Canada		7,943		591,432
The Bank of Nova Scotia		6,157		408,897
The Toronto-Dominion Bank		8,225		434,092

				2,041,565


Capital Goods 0.1%
Bombardier, Inc., B Shares		15,792		53,283
Finning International, Inc.		2,115		66,097
SNC-Lavalin Group, Inc.		940		48,250

				167,630


Consumer Services 0.0%
Tim Hortons, Inc.		705		56,803


Diversified Financials 0.1%
IGM Financial, Inc.		705		33,718
Onex Corp.		940		54,862

				88,580


Energy 2.2%
ARC Resources Ltd.		1,598		46,301
Baytex Energy Corp. (d)		705		31,599
Bonavista Energy Corp.		2,115		28,895
Cameco Corp.		2,209		43,294
Canadian Natural Resources Ltd.		7,426		324,423
Canadian Oil Sands Ltd.		6,627		143,078
Cenovus Energy, Inc.		7,050		225,392
Crescent Point Energy Corp. (d)		1,410		58,493
Enbridge, Inc.		3,243		162,128
Encana Corp.		18,612		430,148
Enerplus Corp.		3,525		80,882
Husky Energy, Inc. (d)		3,525		107,562
Imperial Oil Ltd.		2,444		130,362
Inter Pipeline Ltd.		329		11,004
Pacific Rubiales Energy Corp.		1,739		36,279
Pembina Pipeline Corp.		940		43,302
Pengrowth Energy Corp.		8,225		52,546
Penn West Petroleum Ltd.		12,737		99,219
Suncor Energy, Inc.		11,092		456,359
Talisman Energy, Inc.		15,275		153,912
TransCanada Corp.		5,170		278,482
Vermilion Energy, Inc.		470		30,646

				2,974,306


Food & Staples Retailing 0.4%
Alimentation Couche-Tard, Inc., B Shares		4,465		134,228
Empire Co., Ltd., A Shares		799		55,678
George Weston Ltd.		705		56,003
Loblaw Cos. Ltd.		2,797		139,753
Metro, Inc. (d)		1,457		94,680

				480,342


Food, Beverage & Tobacco 0.0%
Saputo, Inc.		1,081		65,911


Insurance 0.5%
Fairfax Financial Holdings Ltd.		188		86,831
Great-West Lifeco, Inc. (d)		1,504		44,118
Intact Financial Corp.		658		44,833
Manulife Financial Corp.		10,434		211,133
Power Corp. of Canada		4,465		131,882
Power Financial Corp.		1,974		63,965
Sun Life Financial, Inc.		3,572		133,133

				715,895


Materials 0.7%
Agrium, Inc.		1,269		120,284
Barrick Gold Corp.		12,643		232,988
First Quantum Minerals Ltd.		2,585		58,170
Goldcorp, Inc.		3,713		104,501
Kinross Gold Corp. *		12,502		49,558
Potash Corp. of Saskatchewan, Inc.		6,533		230,003
Teck Resources Ltd., Class B		6,110		139,070
Yamana Gold, Inc.		3,619		30,894

				965,468


Media 0.1%
Quebecor, Inc., Class B		1,034		26,442
Shaw Communications, Inc., B Shares		2,585		65,271
Yellow Media Ltd. *		658		10,294

				102,007

See financial notes 33

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Valeant Pharmaceuticals International, Inc. *		470		55,191


Real Estate 0.2%
Brookfield Asset Management, Inc., Class A (d)		4,230		202,580


Retailing 0.1%
Canadian Tire Corp. Ltd., Class A		705		72,999
RONA, Inc.		3,666		48,294

				121,293


Software & Services 0.0%
CGI Group, Inc., Class A *		1,645		58,354


Technology Hardware & Equipment 0.2%
BlackBerry Ltd. *		23,876		243,217
Celestica, Inc. *		4,371		48,193

				291,410


Telecommunication Services 0.3%
BCE, Inc.		3,666		165,430
Rogers Communications, Inc., B Shares		2,961		120,979
TELUS Corp.		2,489		90,978

				377,387


Transportation 0.3%
Canadian National Railway Co.		4,136		297,746
Canadian Pacific Railway Ltd.		423		84,928

				382,674


Utilities 0.2%
Atco Ltd., Class I		705		30,410
Canadian Utilities Ltd., Class A		1,081		39,005
Emera, Inc.		846		26,813
Fortis, Inc.		2,068		63,903
TransAlta Corp. (d)		4,042		46,727

				206,858

				9,653,376

Denmark 0.9%


Banks 0.1%
Danske Bank A/S		4,700		132,460


Capital Goods 0.1%
FLSmidth & Co. A/S		658		35,216
Vestas Wind Systems A/S *		1,752		73,910

				109,126


Food, Beverage & Tobacco 0.1%
Carlsberg A/S, B Shares		799		73,036


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Novo Nordisk A/S, B Shares		6,815		312,078


Telecommunication Services 0.1%
TDC A/S		12,690		109,177


Transportation 0.3%
AP Moller - Maersk A/S, A Shares		64		154,458
AP Moller - Maersk A/S, B Shares		105		263,619
DSV A/S		564		17,341

				435,418

				1,171,295

Finland 1.2%


Automobiles & Components 0.0%
Nokian Renkaat Oyj		470		15,013


Capital Goods 0.2%
Kone Oyj, B Shares		1,128		47,843
Metso Oyj		2,115		83,131
Wartsila Oyj Abp		1,175		59,215
YIT Oyj (d)		2,491		22,935

				213,124


Energy 0.0%
Neste Oil Oyj		2,961		58,113


Food & Staples Retailing 0.1%
Kesko Oyj, B Shares		2,632		96,552


Insurance 0.1%
Sampo Oyj, A Shares		2,209		108,910


Materials 0.2%
Stora Enso Oyj, R Shares		11,139		97,204
UPM-Kymmene Oyj		9,645		145,211

				242,415


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Orion Oyj, Class B		1,222		48,047


Technology Hardware & Equipment 0.5%
Nokia Oyj		75,905		639,386


Telecommunication Services 0.0%
Elisa Oyj		1,786		48,744


Utilities 0.1%
Fortum Oyj		4,888		122,975

				1,593,279

France 10.7%


Automobiles & Components 0.4%
Faurecia		752		25,368
Peugeot S.A. *		14,335		201,849
Renault S.A.		2,773		217,622
Valeo S.A.		658		79,712

				524,551


Banks 0.9%
BNP Paribas S.A.		10,387		702,969
Credit Agricole S.A.		11,750		174,659
Societe Generale S.A.		6,674		338,937

				1,216,565


Capital Goods 1.6%
Airbus Group N.V.		1,692		104,314
Alstom S.A. *		3,102		110,055
Bouygues S.A.		5,640		207,529
Compagnie de Saint-Gobain		9,588		487,871
Eiffage S.A.		1,269		82,406
Legrand S.A.		1,457		80,739
Nexans S.A. *		940		39,696
Rexel S.A.		2,491		49,709
Safran S.A.		1,128		74,119
Schneider Electric SE		4,089		346,430
Thales S.A.		752		42,093
Vallourec S.A.		2,115		94,692

34 See financial notes

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Vinci S.A.		6,204		406,553

				2,126,206


Commercial & Professional Services 0.0%
Teleperformance		188		12,231


Consumer Durables & Apparel 0.3%
Christian Dior S.A.		376		67,034
Kering		611		129,776
LVMH Moet Hennessy Louis Vuitton S.A.		1,363		237,075

				433,885


Consumer Services 0.1%
Accor S.A.		2,491		121,337
Sodexo		611		60,336

				181,673


Diversified Financials 0.0%
Wendel S.A.		235		28,438


Energy 2.1%
CGG S.A. *		2,820		25,315
Technip S.A.		705		65,468
Total S.A.		41,125		2,718,785

				2,809,568


Food & Staples Retailing 0.5%
Carrefour S.A.		12,784		444,299
Casino Guichard Perrachon S.A.		1,128		134,956
Rallye S.A.		1,175		56,259

				635,514


Food, Beverage & Tobacco 0.3%
Danone S.A.		3,995		279,634
Pernod-Ricard S.A.		1,081		127,780

				407,414


Health Care Equipment & Services 0.1%
Essilor International S.A.		752		79,956


Household & Personal Products 0.1%
L’Oreal S.A.		1,034		171,610


Insurance 0.4%
AXA S.A.		20,210		501,799
CNP Assurances		1,786		35,323
SCOR SE		1,504		46,159

				583,281


Materials 0.4%
Air Liquide S.A.		2,219		284,220
Arkema S.A.		705		53,034
Lafarge S.A.		2,632		202,118

				539,372


Media 0.1%
Eutelsat Communications S.A.		940		31,431
Publicis Groupe S.A.		658		49,143
Solocal Group *		15,463		12,221

				92,795


Pharmaceuticals, Biotechnology & Life Sciences 0.8%
Sanofi		9,729		1,070,056


Real Estate 0.0%
Unibail-Rodamco SE		94		25,308


Software & Services 0.1%
AtoS		376		28,755
Cap Gemini S.A.		1,692		120,595

				149,350


Technology Hardware & Equipment 0.1%
Alcatel-Lucent *		17,531		60,778


Telecommunication Services 1.4%
Orange S.A.		81,686		1,239,515
Vivendi S.A. *		24,534		639,699

				1,879,214


Transportation 0.1%
Air France-KLM *		11,891		124,707


Utilities 0.9%
Electricite de France S.A.		4,794		156,256
GDF Suez		29,140		719,493
Suez Environnement Co.		5,734		105,966
Veolia Environnement S.A.		14,288		263,012

				1,244,727

				14,397,199

Germany 8.2%


Automobiles & Components 1.1%
Bayerische Motoren Werke AG		3,290		383,956
Continental AG		658		140,842
Daimler AG - Reg’d		11,186		917,057
Volkswagen AG		282		63,332

				1,505,187


Banks 0.1%
Commerzbank AG *		4,935		74,884


Capital Goods 0.9%
Brenntag AG		1,410		74,801
GEA Group AG		1,222		55,419
Hochtief AG		423		33,520
Kloeckner & Co. SE *		3,102		42,535
MAN SE		423		50,285
MTU Aero Engines AG		376		32,886
OSRAM Licht AG *		235		9,849
Rheinmetall AG		564		30,574
Siemens AG - Reg’d		7,426		932,571

				1,262,440


Commercial & Professional Services 0.0%
Bilfinger SE		517		39,416


Consumer Durables & Apparel 0.1%
adidas AG		1,269		95,344


Consumer Services 0.0%
TUI AG		3,995		58,279


Diversified Financials 0.3%
Deutsche Bank AG - Reg’d		9,447		324,031
Deutsche Boerse AG		1,269		90,446

				414,477


Food & Staples Retailing 0.1%
Metro AG *		4,888		172,100


Food, Beverage & Tobacco 0.0%
Suedzucker AG		940		16,220


Health Care Equipment & Services 0.2%
Fresenius Medical Care AG & Co. KGaA		1,410		99,679

See financial notes 35

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Fresenius SE & Co. KGaA		2,820		137,919

				237,598


Household & Personal Products 0.1%
Beiersdorf AG		376		33,178
Henkel AG & Co. KGaA		564		53,779

				86,957


Insurance 0.8%
Allianz SE - Reg’d		4,371		747,321
Hannover Rueck SE		517		43,045
Muenchener Rueckversicherungs AG - Reg’d		1,598		321,206

				1,111,572


Materials 1.4%
Aurubis AG		1,081		53,240
BASF SE		10,340		1,066,298
HeidelbergCement AG		1,739		131,527
K+S AG		2,820		87,885
LANXESS AG		987		61,253
Linde AG		1,128		223,836
Salzgitter AG		1,598		59,821
ThyssenKrupp AG *		9,165		255,024

				1,938,884


Media 0.0%
ProSiebenSat.1 Media AG - Reg’d		705		28,337


Pharmaceuticals, Biotechnology & Life Sciences 0.6%
Bayer AG - Reg’d		5,123		688,635
Merck KGaA		564		49,203

				737,838


Semiconductors & Semiconductor Equipment 0.1%
Infineon Technologies AG		6,016		70,090


Software & Services 0.2%
SAP SE		3,102		241,889


Telecommunication Services 0.7%
Deutsche Telekom AG - Reg’d		60,489		906,714
Freenet AG		1,410		37,777

				944,491


Transportation 0.3%
Deutsche Lufthansa AG - Reg’d		5,170		89,721
Deutsche Post AG - Reg’d		10,387		340,470

				430,191


Utilities 1.2%
E.ON SE		55,319		1,007,740
RWE AG		14,194		556,777

				1,564,517

				11,030,711

Hong Kong 1.1%


Banks 0.1%
Hang Seng Bank Ltd.		4,700		79,383


Capital Goods 0.3%
Hutchison Whampoa Ltd.		16,000		208,099
Jardine Matheson Holdings Ltd.		1,200		72,312
Jardine Strategic Holdings Ltd.		1,200		43,680
Noble Group Ltd.		141,000		153,660

				477,751


Consumer Durables & Apparel 0.1%
Li & Fung Ltd.		94,000		116,679


Consumer Services 0.0%
Sands China Ltd.		2,400		15,638


Diversified Financials 0.1%
Hong Kong Exchanges & Clearing Ltd.		4,700		108,007


Insurance 0.1%
AIA Group Ltd.		20,200		110,251


Real Estate 0.2%
Cheung Kong (Holdings) Ltd.		3,700		67,458
New World Development Co., Ltd.		13,000		16,438
Sun Hung Kai Properties Ltd.		500		7,587
Swire Pacific Ltd., Class A		3,300		44,411
The Link REIT		16,000		94,966
The Wharf Holdings Ltd.		4,800		37,532

				268,392


Retailing 0.1%
Esprit Holdings Ltd.		61,100		99,177


Telecommunication Services 0.0%
PCCW Ltd.		49,000		31,170


Utilities 0.1%
CLP Holdings Ltd.		9,000		76,179
Hong Kong & China Gas Co., Ltd.		36,500		82,795
Power Assets Holdings Ltd.		400		3,644

				162,618

				1,469,066

Ireland 0.6%


Banks 0.1%
Bank of Ireland *		201,019		80,229


Commercial & Professional Services 0.1%
Experian plc		4,559		79,348


Food, Beverage & Tobacco 0.0%
Kerry Group plc, A Shares		752		56,708


Materials 0.2%
CRH plc		11,046		255,785
Smurfit Kappa Group plc		2,209		50,236

				306,021


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Shire plc		1,081		88,381


Technology Hardware & Equipment 0.1%
Seagate Technology plc		3,055		191,182

				801,869

Israel 0.4%


Banks 0.0%
Bank Leumi Le-Israel *		10,293		40,239


Materials 0.0%
Israel Chemicals Ltd.		5,311		41,078


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Teva Pharmaceutical Industries Ltd.		6,251		326,179

36 See financial notes

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number			Value
Security	of Shares			($)


Telecommunication Services 0.1%
Bezeq The Israeli Telecommunication Corp., Ltd.		44,133			83,556

					491,052

Italy 4.1%


Automobiles & Components 0.2%
Fiat S.p.A. *		21,667			212,336
Pirelli & C. S.p.A.		2,585			39,600

					251,936


Banks 1.1%
Banca Monte dei Paschi di Siena S.p.A. *		5,029			7,538
Banca Popolare dell’Emilia Romagna SC *		4,794			40,319
Banco Popolare SC *		2,773			43,356
Intesa Sanpaolo S.p.A.		198,340			591,478
Intesa Sanpaolo S.p.A. - RSP		11,233			29,370
UniCredit S.p.A.		87,420			678,232
Unione di Banche Italiane S.C.p.A.		10,998			86,123

					1,476,416


Capital Goods 0.1%
Finmeccanica S.p.A. *		12,925			121,217
Prysmian S.p.A.		1,739			35,413

					156,630


Consumer Durables & Apparel 0.0%
Luxottica Group S.p.A.		470			25,166


Diversified Financials 0.1%
Exor S.p.A.		1,504			59,987
Mediobanca S.p.A. *		6,110			53,520

					113,507


Energy 1.1%
Eni S.p.A.		57,293			1,432,351
Saipem S.p.A. *		3,384			80,501

					1,512,852


Insurance 0.1%
Assicurazioni Generali S.p.A.		10,105			207,108


Materials 0.0%
Italcementi S.p.A.		4,700			34,050
��

Media 0.1%
Mediaset S.p.A. *		17,343			71,685


Telecommunication Services 0.5%
Telecom Italia S.p.A. *		389,630			449,325
Telecom Italia S.p.A. - RSP		231,898			213,819

					663,144


Transportation 0.1%
Atlantia S.p.A.		2,914			74,156


Utilities 0.7%
A2A S.p.A.		32,900			36,120
Enel S.p.A.		163,654			867,865
Snam S.p.A.		11,421			66,584
Terna-Rete Elettrica Nazionale S.p.A.		8,836			45,624

					1,016,193

					5,602,843

Japan 20.2%


Automobiles & Components 2.6%
Aisin Seiki Co., Ltd.		2,200			81,427
Bridgestone Corp.		5,800			199,261
Daihatsu Motor Co., Ltd.		4,700			80,757
Denso Corp.		4,700			204,179
Fuji Heavy Industries Ltd.		4,700			133,714
Honda Motor Co., Ltd.		18,800			635,745
Isuzu Motors Ltd.		8,200			56,745
Mazda Motor Corp.		4,700			111,025
NHK Spring Co., Ltd.		4,700			44,971
Nissan Motor Co., Ltd.		35,400			340,421
Stanley Electric Co., Ltd.		800			18,967
Sumitomo Electric Industries Ltd.		14,100			206,712
Sumitomo Rubber Industries Ltd.		1,600			22,887
Suzuki Motor Corp.		4,700			152,964
Toyota Industries Corp.		1,500			72,123
Toyota Motor Corp.		18,800			1,072,786
Yamaha Motor Co., Ltd.		4,700			87,091

					3,521,775


Banks 1.0%
Mitsubishi UFJ Financial Group, Inc.		86,600			498,668
Mizuho Financial Group, Inc.		145,700			277,557
Resona Holdings, Inc.		16,600			90,155
Sumitomo Mitsui Financial Group, Inc.		9,400			380,081
Sumitomo Mitsui Trust Holdings, Inc.		7,000			28,765
The Bank of Yokohama Ltd.		5,000			27,612

					1,302,838


Capital Goods 2.9%
Asahi Glass Co., Ltd.		25,000			135,583
Daikin Industries Ltd.		1,500			103,528
FANUC Corp.		600			100,496
Furukawa Electric Co., Ltd.		9,000			19,406
Hanwa Co., Ltd.		4,000			15,787
Hino Motors Ltd.		1,100			15,618
IHI Corp.		6,000			28,300
ITOCHU Corp.		18,800			239,332
JGC Corp.		1,000			28,984
JTEKT Corp.		4,700			74,831
Kajima Corp.		11,000			56,331
Kawasaki Heavy Industries Ltd.		8,000			29,802
Kinden Corp. (d)		2,000			21,485
Komatsu Ltd.		9,400			213,091
Kubota Corp.		7,000			100,130
Kurita Water Industries Ltd.		1,000			22,477
LIXIL Group Corp.		4,700			104,148
Makita Corp.		500			27,964
Marubeni Corp.		23,500			169,885
Mitsubishi Corp.		21,800			451,487
Mitsubishi Electric Corp.		19,000			238,129
Mitsubishi Heavy Industries Ltd.		34,000			209,561
Mitsui & Co., Ltd.		23,500			383,655
Mitsui Engineering & Shipbuilding Co., Ltd.		6,000			13,111
Nagase & Co., Ltd.		4,700			57,774
Nidec Corp.		1,000			63,849
Nippon Sheet Glass Co., Ltd. *		32,000			38,196
NSK Ltd.		4,000	��		53,213
Obayashi Corp.		4,000			30,572
Shimizu Corp.		7,000			57,949

See financial notes 37

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
SMC Corp.		200		52,356
Sojitz Corp.		65,800		108,944
Sumitomo Corp.		18,800		243,042
Sumitomo Heavy Industries Ltd.		6,000		30,957
Taisei Corp.		8,000		47,745
Toshiba Corp.		53,000		233,968
TOTO Ltd.		1,000		12,177
Toyota Tsusho Corp.		4,700		124,190

				3,958,053


Commercial & Professional Services 0.2%
Dai Nippon Printing Co., Ltd.		13,600		142,893
Secom Co., Ltd.		1,700		104,060
Toppan Printing Co., Ltd.		11,000		80,897

				327,850


Consumer Durables & Apparel 1.0%
Bandai Namco Holdings, Inc.		4,700		131,474
Nikon Corp.		4,900		71,247
Panasonic Corp.		37,600		460,024
Sega Sammy Holdings, Inc.		500		9,544
Sekisui Chemical Co., Ltd.		5,000		59,200
Sekisui House Ltd.		6,400		80,581
Sharp Corp. *		47,000		148,395
Shimano, Inc.		400		47,784
Sony Corp.		18,800		360,129
Sumitomo Forestry Co., Ltd.		1,800		20,134

				1,388,512


Consumer Services 0.0%
Benesse Holdings, Inc.		700		24,830
Oriental Land Co., Ltd.		100		19,488

				44,318


Diversified Financials 0.1%
Credit Saison Co., Ltd.		1,400		27,856
Nomura Holdings, Inc.		9,400		60,390
ORIX Corp.		5,700		86,143

				174,389


Energy 0.7%
Cosmo Oil Co., Ltd.		47,000		88,222
Idemitsu Kosan Co., Ltd.		4,700		103,243
Inpex Corp.		14,700		210,839
JX Holdings, Inc.		84,600		435,521
Showa Shell Sekiyu K.K.		4,900		52,639
TonenGeneral Sekiyu K.K.		8,000		73,081

				963,545


Food & Staples Retailing 0.5%
Aeon Co., Ltd.		18,800		203,410
Lawson, Inc.		700		50,334
Seven & i Holdings Co., Ltd.		9,600		385,580
UNY Group Holdings Co., Ltd. (d)		4,700		26,467

				665,791


Food, Beverage & Tobacco 0.8%
Ajinomoto Co., Inc.		5,000		81,412
Asahi Group Holdings Ltd.		4,700		148,440
Coca-Cola West Co., Ltd.		600		9,351
Japan Tobacco, Inc.		7,500		257,304
Kewpie Corp.		1,500		25,730
Kirin Holdings Co., Ltd.		14,100		189,271
MEIJI Holdings Co., Ltd.		1,100		90,745
NH Foods Ltd.		3,300		69,948
Nisshin Seifun Group, Inc.		4,700		54,246
Nissin Foods Holdings Co., Ltd.		600		34,423
Toyo Suisan Kaisha Ltd.		200		6,266
Yamazaki Baking Co., Ltd. (d)		3,000		39,534

				1,006,670


Health Care Equipment & Services 0.2%
Alfresa Holdings Corp.		900		53,540
Medipal Holdings Corp.		9,400		121,793
Olympus Corp. *		400		14,304
Suzuken Co., Ltd.		1,000		33,354
Terumo Corp.		1,000		25,201

				248,192


Household & Personal Products 0.2%
Kao Corp.		4,700		202,912
Shiseido Co., Ltd.		4,700		86,865
Unicharm Corp.		400		26,302

				316,079


Insurance 0.3%
MS&AD Insurance Group Holdings, Inc.		1,700		38,399
NKSJ Holdings, Inc.		2,500		60,475
T&D Holdings, Inc.		4,700		58,385
The Dai-ichi Life Insurance Co., Ltd.		4,700		67,434
Tokio Marine Holdings, Inc.		4,700		143,486

				368,179


Materials 1.7%
Air Water, Inc.		1,000		15,748
Asahi Kasei Corp.		18,000		144,575
Daicel Corp.		3,000		33,325
Denki Kagaku Kogyo K.K.		5,000		16,942
DIC Corp.		6,000		13,688
Hitachi Chemical Co., Ltd.		1,300		24,227
JFE Holdings, Inc.		11,300		228,861
JSR Corp.		4,700		81,798
Kaneka Corp.		3,000		17,760
Kobe Steel Ltd.		52,000		84,594
Kuraray Co. Ltd.		4,700		58,544
Mitsubishi Chemical Holdings Corp.		32,900		164,334
Mitsubishi Materials Corp.		11,000		37,166
Mitsui Chemicals, Inc.		47,000		138,894
Mitsui Mining & Smelting Co., Ltd.		6,000		18,482
Nippon Paper Industries Co., Ltd.		100		1,615
Nippon Steel & Sumitomo Metal Corp.		94,000		266,387
Nitto Denko Corp.		1,100		57,708
Oji Holdings Corp.		13,000		52,933
Shin-Etsu Chemical Co., Ltd.		4,700		292,084
Showa Denko K.K.		47,000		67,863
Sumitomo Chemical Co., Ltd.		25,000		89,763
Sumitomo Metal Mining Co., Ltd.		5,000		75,973
Taiheiyo Cement Corp.		5,000		20,937
Taiyo Nippon Sanso Corp.		3,000		27,030
Teijin Ltd.		47,000		115,368
Toray Industries, Inc.		18,000		123,003
Tosoh Corp.		4,000		16,557
Toyo Seikan Group Holdings Ltd.		2,500		34,221
Ube Industries Ltd.		16,000		27,107

				2,347,487


Media 0.2%
Dentsu, Inc.		2,800		113,876

38 See financial notes

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Hakuhodo DY Holdings, Inc.		9,400		97,362

				211,238


Pharmaceuticals, Biotechnology & Life Sciences 0.9%
Astellas Pharma, Inc.		17,700		255,230
Chugai Pharmaceutical Co., Ltd.		900		28,546
Daiichi Sankyo Co., Ltd.		9,400		166,311
Eisai Co., Ltd.		1,800		75,294
Kyowa Hakko Kirin Co., Ltd.		2,000		27,145
Mitsubishi Tanabe Pharma Corp.		1,500		22,987
Ono Pharmaceutical Co., Ltd.		300		26,799
Otsuka Holdings Co., Ltd.		4,700		171,107
Shionogi & Co., Ltd.		1,800		42,451
Taisho Pharmaceutical Holdings Co., Ltd.		400		30,380
Takeda Pharmaceutical Co., Ltd.		7,000		320,065

				1,166,315


Real Estate 0.3%
Daito Trust Construction Co., Ltd.		900		111,455
Daiwa House Industry Co., Ltd.		5,000		94,696
Mitsubishi Estate Co., Ltd.		3,800		87,845
Mitsui Fudosan Co., Ltd.		3,800		121,259
Sumitomo Realty & Development Co., Ltd.		1,300		50,418

				465,673


Retailing 0.4%
EDION Corp.		11,800		74,740
Fast Retailing Co., Ltd.		100		31,333
Isetan Mitsukoshi Holdings Ltd.		4,700		56,553
J Front Retailing Co., Ltd.		2,000		25,374
K’s Holdings Corp.		700		19,575
Marui Group Co., Ltd.		1,900		15,985
Nitori Holdings Co., Ltd.		500		30,033
Shimamura Co., Ltd.		400		36,117
Takashimaya Co., Ltd.		2,000		17,115
Yamada Denki Co., Ltd.		56,400		181,331

				488,156


Semiconductors & Semiconductor Equipment 0.1%
Rohm Co., Ltd.		1,060		67,752
Tokyo Electron Ltd.		1,260		86,490

				154,242


Software & Services 0.5%
Fujitsu Ltd.		54,000		370,985
Konami Corp.		1,820		42,204
Nintendo Co., Ltd.		2,100		233,075
NTT Data Corp.		1,300		46,677

				692,941


Technology Hardware & Equipment 2.1%
Brother Industries Ltd.		4,700		91,254
Canon, Inc.		18,800		615,115
FUJIFILM Holdings Corp.		9,400		283,715
Hitachi Ltd.		67,000		507,248
Hoya Corp.		4,700		152,127
Ibiden Co., Ltd.		2,000		39,332
Keyence Corp.		100		42,860
Konica Minolta, Inc.		6,400		70,416
Kyocera Corp.		4,700		220,081
Murata Manufacturing Co., Ltd.		1,100		105,187
NEC Corp.		69,000		245,752
Nippon Electric Glass Co., Ltd.		11,000		55,379
Omron Corp.		1,300		56,375
Ricoh Co., Ltd.		10,700		115,925
Seiko Epson Corp.		3,000		152,188
TDK Corp.		2,000		99,726

				2,852,680


Telecommunication Services 1.3%
KDDI Corp.		6,200		358,028
Nippon Telegraph & Telephone Corp.		10,100		678,616
NTT DOCOMO, Inc.		23,500		406,842
SoftBank Corp.		3,700		267,336

				1,710,822


Transportation 1.1%
ANA Holdings, Inc.		18,000		43,820
Central Japan Railway Co.		1,460		204,907
East Japan Railway Co.		4,700		365,694
Hankyu Hanshin Holdings, Inc.		7,000		41,305
Kamigumi Co., Ltd.		2,000		18,636
Kawasaki Kisen Kaisha Ltd.		47,000		113,106
Kintetsu Corp.		8,000		28,108
Mitsui OSK Lines Ltd.		47,000		172,373
Nagoya Railroad Co., Ltd.		5,000		20,696
Nippon Express Co., Ltd.		20,000		91,640
Nippon Yusen K.K.		47,000		138,442
Odakyu Electric Railway Co., Ltd.		3,000		29,629
Seino Holdings Co., Ltd.		1,000		9,395
Tobu Railway Co., Ltd.		6,000		31,477
Tokyu Corp.		5,000		34,750
West Japan Railway Co.		1,900		89,993
Yamato Holdings Co., Ltd.		4,700		97,248

				1,531,219


Utilities 1.1%
Chubu Electric Power Co., Inc. *		18,800		217,435
Electric Power Development Co., Ltd.		1,100		36,107
Hokkaido Electric Power Co., Inc. *		4,700		40,628
Hokuriku Electric Power Co.		4,700		60,941
Kyushu Electric Power Co., Inc. *		9,400		95,552
Osaka Gas Co., Ltd.		37,000		152,438
Shikoku Electric Power Co., Inc. *		4,700		57,774
The Chugoku Electric Power Co., Inc.		4,700		62,072
The Kansai Electric Power Co., Inc. *		18,800		172,229
Toho Gas Co., Ltd.		5,000		28,830
Tohoku Electric Power Co., Inc.		10,200		112,815
Tokyo Electric Power Co., Inc. *		66,700		241,413
Tokyo Gas Co., Ltd.		26,000		147,889

				1,426,123

				27,333,087

Luxembourg 0.6%


Energy 0.1%
Tenaris S.A.		3,525		77,958


Materials 0.4%
APERAM *		2,256		72,849
ArcelorMittal		35,955		524,511

				597,360


Media 0.1%
RTL Group S.A.		188		18,283
SES S.A.		1,927		71,477

				89,760

See financial notes 39

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Telecommunication Services 0.0%
Millicom International Cellular S.A.		611		54,910

				819,988

Netherlands 6.0%


Banks 0.3%
ING Groep N.V. CVA *		29,234		402,976


Capital Goods 0.3%
Koninklijke BAM Groep N.V. (d)		7,520		17,820
Koninklijke Boskalis Westminster N.V.		470		27,113
Koninklijke Philips N.V.		10,152		310,101

				355,034


Commercial & Professional Services 0.0%
Randstad Holding N.V.		1,222		59,467


Energy 3.7%
Fugro N.V. CVA		940		34,180
Royal Dutch Shell plc, A Shares		73,367		2,970,201
Royal Dutch Shell plc, B Shares		47,799		2,020,672

				5,025,053


Food & Staples Retailing 0.2%
Koninklijke Ahold N.V.		19,470		333,397


Food, Beverage & Tobacco 0.5%
Heineken Holding N.V.		940		65,041
Heineken N.V.		1,504		114,704
Nutreco N.V.		752		28,998
Unilever N.V. CVA		10,105		421,071

				629,814


Insurance 0.2%
Aegon N.V.		21,996		174,302
Delta Lloyd N.V.		2,867		69,241

				243,543


Materials 0.3%
Akzo Nobel N.V.		3,760		266,405
Koninklijke DSM N.V.		1,833		122,701

				389,106


Media 0.1%
Reed Elsevier N.V.		2,303		52,631
Wolters Kluwer N.V.		2,679		74,387

				127,018


Semiconductors & Semiconductor Equipment 0.1%
ASML Holding N.V.		705		67,613


Software & Services 0.0%
Gemalto N.V. (d)		235		23,064


Telecommunication Services 0.2%
Koninklijke KPN N.V. *		76,751		255,269
Ziggo N.V.		235		11,205

				266,474


Transportation 0.1%
PostNL N.V. *		22,607		113,484
TNT Express N.V.		5,734		42,960

				156,444

				8,079,003

New Zealand 0.1%


Materials 0.0%
Fletcher Building Ltd.		6,909		53,208


Telecommunication Services 0.1%
Spark New Zealand Ltd.		44,134		108,432


Utilities 0.0%
Meridian Energy Ltd.		6,016		6,371

				168,011

Norway 1.0%


Banks 0.1%
DNB A.S.A.		6,063		113,463


Energy 0.5%
Aker Solutions A.S.A.		1,696		25,754
Petroleum Geo-Services A.S.A.		3,157		23,836
Statoil A.S.A.		21,855		615,614

				665,204


Food, Beverage & Tobacco 0.1%
Marine Harvest A.S.A.		3,298		44,767
Orkla A.S.A.		10,810		97,999

				142,766


Materials 0.2%
Norsk Hydro A.S.A.		18,377		108,289
Yara International A.S.A.		2,350		118,314

				226,603


Telecommunication Services 0.1%
Telenor A.S.A.		7,050		162,178

				1,310,214

Portugal 0.2%


Banks 0.0%
Banco Comercial Portugues S.A. - Reg’d *		235,384		32,090


Energy 0.0%
Galp Energia, SGPS, S.A.		2,397		42,624


Telecommunication Services 0.1%
Portugal Telecom, SGPS, S.A. - Reg’d		29,375		61,560


Utilities 0.1%
EDP - Energias de Portugal S.A.		33,746		163,755

				300,029

Singapore 0.8%


Banks 0.2%
DBS Group Holdings Ltd.		8,600		123,492
Oversea-Chinese Banking Corp., Ltd.		9,800		78,529
United Overseas Bank Ltd.		4,600		84,521

				286,542


Capital Goods 0.1%
Keppel Corp., Ltd.		9,500		82,976
Sembcorp Industries Ltd.		10,000		41,027

				124,003


Food, Beverage & Tobacco 0.1%
Wilmar International Ltd.		28,000		70,900

40 See financial notes

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Media 0.0%
Singapore Press Holdings Ltd. (d)		5,800		19,288


Retailing 0.0%
Jardine Cycle & Carriage Ltd.		1,400		50,550


Technology Hardware & Equipment 0.1%
Flextronics International Ltd. *		13,348		147,362
Venture Corp., Ltd.		6,400		41,181

				188,543


Telecommunication Services 0.1%
Singapore Telecommunications Ltd.		49,000		152,739


Transportation 0.2%
ComfortDelGro Corp., Ltd.		47,000		94,531
Hutchison Port Holdings Trust		47,000		33,840
Singapore Airlines Ltd.		7,600		61,509

				189,880

				1,082,445

Spain 4.5%


Banks 2.1%
Banco Bilbao Vizcaya Argentaria S.A.		64,672		784,563
Banco de Sabadell S.A.		26,368		83,218
Banco Popular Espanol S.A.		16,334		102,218
Banco Santander S.A.		182,241		1,821,963
CaixaBank S.A.		2,350		14,171

				2,806,133


Capital Goods 0.2%
ACS, Actividades de Construccion y Servicios S.A.		3,290		138,913
Ferrovial S.A.		3,525		71,922
Fomento de Construcciones y Contratas S.A. *(d)		1,669		31,284

				242,119


Energy 0.4%
Repsol S.A.		19,975		497,016


Food & Staples Retailing 0.0%
Distribuidora Internacional de Alimentacion S.A.		4,240		35,788


Insurance 0.0%
Mapfre S.A.		2,350		8,831


Retailing 0.1%
Inditex S.A.		3,760		109,207


Software & Services 0.0%
Amadeus IT Holding S.A., A Shares		1,316		49,056


Telecommunication Services 1.1%
Telefonica S.A.		92,308		1,467,569


Transportation 0.0%
Abertis Infraestructuras S.A.		2,750		57,993


Utilities 0.6%
Acciona S.A. *		714		57,256
Enagas S.A.		1,269		42,407
Endesa S.A.		1,880		70,006
Gas Natural SDG S.A.		3,995		122,794
Iberdrola S.A.		67,116		493,743
Red Electrica Corp. S.A.		658		55,548

				841,754

				6,115,466

Sweden 2.2%


Automobiles & Components 0.1%
Autoliv, Inc.		953		98,817


Banks 0.4%
Nordea Bank AB		15,369		200,841
Skandinaviska Enskilda Banken AB, A Shares		10,105		132,269
Svenska Handelsbanken AB, A Shares		3,149		147,981
Swedbank AB, A Shares		3,572		91,206

				572,297


Capital Goods 0.7%
Alfa Laval AB		1,739		39,813
Assa Abloy AB, B Shares		1,457		73,798
Atlas Copco AB, A Shares		4,559		133,083
Atlas Copco AB, B Shares		2,162		57,777
NCC AB, B Shares		1,504		48,068
Sandvik AB		10,059		125,751
Skanska AB, B Shares		5,405		112,112
SKF AB, B Shares		3,525		81,510
Trelleborg AB, B Shares		1,744		33,473
Volvo AB, A Shares		3,525		42,753
Volvo AB, B Shares		14,053		168,223

				916,361


Commercial & Professional Services 0.0%
Securitas AB, B Shares		5,311		58,167


Consumer Durables & Apparel 0.1%
Electrolux AB, Series B		3,713		94,433
Husqvarna AB, B Shares		5,781		43,868

				138,301


Food, Beverage & Tobacco 0.0%
Swedish Match AB		1,423		47,642


Health Care Equipment & Services 0.0%
Getinge AB, B Shares		1,128		29,562


Household & Personal Products 0.1%
Svenska Cellulosa AB S.A. B Shares		6,063		146,112


Materials 0.1%
Boliden AB		4,243		67,377
SSAB AB, A Shares *		6,394		59,297
SSAB AB, B Shares *		3,525		29,378

				156,052


Retailing 0.2%
Hennes & Mauritz AB, B Shares		4,841		206,452


Technology Hardware & Equipment 0.3%
Telefonaktiebolaget LM Ericsson, B Shares		26,555		331,973


Telecommunication Services 0.2%
Tele2 AB, B Shares		7,579		94,530
TeliaSonera AB		25,239		184,643

				279,173

				2,980,909

See financial notes 41

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Switzerland 5.6%


Capital Goods 0.5%
ABB Ltd. - Reg’d *		16,121		366,654
Geberit AG - Reg’d		188		63,943
Schindler Holding AG		198		28,689
Schindler Holding AG - Reg’d		47		6,851
Wolseley plc		2,925		157,292

				623,429


Commercial & Professional Services 0.1%
Adecco S.A. - Reg’d *		1,927		146,232
SGS S.A. - Reg’d		19		42,259

				188,491


Consumer Durables & Apparel 0.2%
Cie Financiere Richemont S.A. - Reg’d		1,551		148,267
The Swatch Group AG		94		51,092
The Swatch Group AG - Reg’d		141		14,472

				213,831


Diversified Financials 0.2%
Credit Suisse Group AG - Reg’d *		8,460		239,062
UBS AG - Reg’d *		1,739		31,254

				270,316


Energy 0.2%
Transocean Ltd.		4,136		159,506
Weatherford International plc *		6,580		155,880

				315,386


Food, Beverage & Tobacco 1.2%
Aryzta AG *		611		55,940
Coca-Cola HBC AG CDI *		470		11,037
Lindt & Spruengli AG		3		15,766
Nestle S.A. - Reg’d		20,163		1,568,612

				1,651,355


Insurance 0.6%
Baloise Holding AG - Reg’d		376		49,143
Swiss Life Holding AG - Reg’d *		282		71,250
Swiss Re AG *		2,256		185,362
Zurich Insurance Group AG *		1,551		469,102

				774,857


Materials 0.7%
Clariant AG - Reg’d *		2,491		43,953
Givaudan S.A. - Reg’d *		47		78,209
Glencore plc *		72,850		438,452
Holcim Ltd. - Reg’d *		2,259		180,059
Sika AG		10		37,888
Syngenta AG - Reg’d		423		152,185

				930,746


Pharmaceuticals, Biotechnology & Life Sciences 1.5%
Lonza Group AG - Reg’d *		470		53,936
Novartis AG - Reg’d		12,784		1,149,492
Roche Holding AG		2,867		838,015
Roche Holding AG, Bearer Shares		141		40,298

				2,081,741


Semiconductors & Semiconductor Equipment 0.1%
STMicroelectronics N.V.		11,045		92,528


Technology Hardware & Equipment 0.1%
TE Connectivity Ltd.		2,961		185,596


Telecommunication Services 0.1%
Swisscom AG - Reg’d		188		109,411


Transportation 0.1%
Kuehne & Nagel International AG - Reg’d		423		57,133

				7,494,820

United Kingdom 17.0%


Automobiles & Components 0.1%
Delphi Automotive plc		1,064		74,033
GKN plc		9,588		55,875

				129,908


Banks 2.4%
Barclays plc		164,500		613,182
HSBC Holdings plc		170,281		1,843,817
Lloyds Banking Group plc *		253,706		321,357
Royal Bank of Scotland Group plc *		22,939		138,212
Standard Chartered plc		14,100		284,043

				3,200,611


Capital Goods 0.6%
BAE Systems plc		37,177		274,812
Balfour Beatty plc		12,749		51,450
Bunzl plc		2,303		62,955
Carillion plc		6,721		37,571
Cobham plc		8,225		40,583
IMI plc		1,661		37,405
Meggitt plc		4,230		33,130
Rolls-Royce Holdings plc *		9,917		168,155
SIG plc		11,280		34,975
Smiths Group plc		2,726		59,578
The Weir Group plc		940		41,291
Travis Perkins plc		1,880		54,420

				896,325


Commercial & Professional Services 0.2%
Aggreko plc		1,334		37,707
Babcock International Group plc		940		17,500
Capita plc		2,914		59,380
G4S plc		18,384		80,908
Hays plc		15,745		34,908
Serco Group plc		7,009		36,131

				266,534


Consumer Durables & Apparel 0.1%
Barratt Developments plc		8,653		53,156
Burberry Group plc		1,598		37,712
Taylor Wimpey plc		22,374		42,583

				133,451


Consumer Services 0.4%
Carnival plc		2,181		81,352
Compass Group plc		12,819		208,527
InterContinental Hotels Group plc		1,039		39,842
Thomas Cook Group plc *		24,393		50,558
TUI Travel plc		10,575		65,420
Whitbread plc		987		71,943
William Hill plc		4,935		28,685

				546,327


Diversified Financials 0.1%
ICAP plc		5,123		32,262

42 See financial notes

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Man Group plc		58,891		115,897

				148,159


Energy 2.9%
AMEC plc		3,290		61,468
BG Group plc		23,500		468,917
BP plc		397,761		3,181,689
Ensco plc, Class A		987		49,824
John Wood Group plc		3,055		39,802
Noble Corp. plc		2,115		60,193
Petrofac Ltd.		1,410		26,437
Subsea 7 S.A.		1,645		27,456
Tullow Oil plc		1,929		23,386

				3,939,172


Food & Staples Retailing 0.7%
Booker Group plc		10,340		22,993
J Sainsbury plc		32,806		158,163
Tesco plc		136,300		520,515
William Morrison Supermarkets plc		68,526		202,003

				903,674


Food, Beverage & Tobacco 1.5%
Associated British Foods plc		2,350		111,736
British American Tobacco plc		12,314		726,707
Diageo plc		10,246		302,120
Imperial Tobacco Group plc		7,247		316,171
SABMiller plc		4,042		223,065
Tate & Lyle plc		5,405		60,725
Unilever plc		7,567		334,153

				2,074,677


Health Care Equipment & Services 0.1%
Smith & Nephew plc		5,922		102,579


Household & Personal Products 0.2%
Reckitt Benckiser Group plc		3,008		262,265


Insurance 0.8%
Amlin plc		4,841		36,171
Aviva plc		32,947		285,074
Direct Line Insurance Group plc		4,747		23,564
Friends Life Group Ltd.		16,215		82,591
Legal & General Group plc		23,500		94,330
Old Mutual plc		39,856		131,653
Prudential plc		8,225		198,065
RSA Insurance Group plc		10,274		78,181
Standard Life plc		11,327		72,311
Willis Group Holdings plc		987		41,424

				1,043,364


Materials 1.6%
Anglo American plc		26,837		681,914
Antofagasta plc		3,760		49,050
BHP Billiton plc		16,544		524,094
Johnson Matthey plc		2,444		128,179
Kazakhmys plc *		9,870		48,667
Mondi plc		3,807		65,311
Rexam plc		8,467		71,292
Rio Tinto plc		11,797		629,584
Vedanta Resources plc		2,585		43,402

				2,241,493


Media 0.5%
British Sky Broadcasting Group plc		5,739		83,254
Informa plc		3,482		29,839
ITV plc		9,400		32,970
Liberty Global plc, Class A *		2,280		99,568
Liberty Global plc, Series C *		2,604		109,186
Pearson plc		6,909		127,477
Reed Elsevier plc		3,854		62,885
WPP plc		6,678		140,073

				685,252


Pharmaceuticals, Biotechnology & Life Sciences 1.8%
AstraZeneca plc		16,873		1,279,756
GlaxoSmithKline plc		45,590		1,116,396

				2,396,152


Real Estate 0.1%
Land Securities Group plc		4,371		78,544


Retailing 0.5%
Home Retail Group plc		37,647		114,541
Inchcape plc		6,815		76,396
Kingfisher plc		27,777		140,099
Marks & Spencer Group plc		23,876		170,464
Next plc		1,081		127,374

				628,874


Software & Services 0.0%
The Sage Group plc		7,426		48,554


Telecommunication Services 1.3%
BT Group plc		74,918		481,505
Cable & Wireless Communications plc		73,931		60,826
Inmarsat plc		2,585		30,073
Vodafone Group plc		355,038		1,219,058

				1,791,462


Transportation 0.1%
Firstgroup plc *		34,075		71,926
International Consolidated Airlines Group S.A. *		6,298		37,779

				109,705


Utilities 1.0%
Centrica plc		60,207		319,364
Drax Group plc		4,700		48,980
National Grid plc		31,396		468,746
Pennon Group plc		3,102		41,909
Severn Trent plc		2,256		72,872
SSE plc		12,126		305,698
United Utilities Group plc		7,520		109,527

				1,367,096

				22,994,178

Total Common Stock
(Cost $131,749,328)				133,951,148




Other Investment Companies 0.4% of net assets

United States 0.4%


Equity Fund 0.1%
iShares MSCI EAFE ETF		1,500		100,065

See financial notes 43

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Securities Lending Collateral 0.3%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c)		473,509		473,509

Total Other Investment Companies
(Cost $571,790)				573,574




Preferred Stock 0.4% of net assets

Germany 0.4%


Automobiles & Components 0.3%
Bayerische Motoren Werke AG		517		49,562
Volkswagen AG		1,504		338,466

				388,028


Household & Personal Products 0.1%
Henkel AG & Co. KGaA		893		93,865


Utilities 0.0%
RWE AG		1,128		34,679

Total Preferred Stock
(Cost $562,673)				516,572




Rights 0.0% of net assets

Singapore 0.0%


Banks 0.0%
Oversea-Chinese Banking Corp., Ltd. *(a)(b)		1,225		2,307

Total Rights
(Cost $—)				2,307



End of Investments.


*		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 $2,307 or 0.0% of net assets.
(c)		The rate shown is the 7-day yield.
(d)		All or a portion of this security is on loan. Securities on loan were valued at $478,698.


CDI —		CHESS Depositary Interest
CVA —		Dutch Certificate
ETF —		Exchange Traded Fund
Reg’d —		Registered
REIT —		Real Estate Investment Trust
RSP —		Risparmio (Convertible Savings Shares)

44 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings as of August 31, 2014 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)

	99	.3%	Common Stock		35,153,834		36,598,367
	2	.2%	Other Investment Companies		784,332		785,645
	0	.4%	Preferred Stock		160,752		149,003


	101	.9%	Total Investments		36,098,918		37,533,015
	(1	.9)%	Other Assets and Liabilities, Net				(686,416	)


	100	.0%	Net Assets				36,846,599


	Number		Value
Security	of Shares		($)

Common Stock 99.3% of net assets

Australia 6.0%


Banks 0.2%
Bank of Queensland Ltd.		3,304		38,875
Bendigo & Adelaide Bank Ltd.		4,662		54,287

				93,162


Capital Goods 0.3%
Bradken Ltd.		6,500		28,573
Cardno Ltd. (b)		2,520		15,509
GWA Group Ltd.		9,520		27,157
Monadelphous Group Ltd. (b)		1,631		23,889
Seven Group Holdings Ltd.		533		3,849

				98,977


Commercial & Professional Services 0.5%
ALS Ltd.		5,252		36,547
Cabcharge Australia Ltd.		858		4,333
Mineral Resources Ltd.		494		4,912
SAI Global Ltd.		702		3,079
Seek Ltd.		1,148		18,758
Skilled Group Ltd.		9,100		23,151
Transfield Services Ltd. *		42,364		69,340
Transpacific Industries Group Ltd.		28,395		23,902

				184,022


Consumer Durables & Apparel 0.1%
Billabong International Ltd. *		11,596		6,128
G.U.D. Holdings Ltd.		3,250		23,862

				29,990


Consumer Services 0.2%
Ardent Leisure Group		1,716		5,024
Aristocrat Leisure Ltd.		4,592		23,751
Echo Entertainment Group Ltd.		13,182		38,960
Flight Centre Travel Group Ltd.		406		17,809
Navitas Ltd.		494		2,481

				88,025


Diversified Financials 0.3%
ASX Ltd.		1,330		46,636
Challenger Ltd.		4,984		36,593
IOOF Holdings Ltd.		1,764		15,558
Perpetual Ltd.		602		27,888	��

				126,675


Energy 0.2%
AWE Ltd. *		16,284		26,501
Beach Energy Ltd.		16,313		24,793
Whitehaven Coal Ltd. *		3,679		6,796

				58,090


Food, Beverage & Tobacco 0.4%
Bega Cheese Ltd.		624		2,953
Goodman Fielder Ltd.		89,208		53,399
GrainCorp Ltd., Class A		3,341		28,311
Treasury Wine Estates Ltd.		12,610		60,268

				144,931


Health Care Equipment & Services 0.6%
Ansell Ltd.		1,890		35,177
Cochlear Ltd.		532		36,099
Primary Health Care Ltd. (b)		8,515		35,998
Ramsay Health Care Ltd.		826		40,142
Sigma Pharmaceuticals Ltd.		93,600		72,224

				219,640


Insurance 0.1%
NIB Holdings Ltd.		9,016		28,587


Materials 0.9%
Adelaide Brighton Ltd.		9,490		31,510
Atlas Iron Ltd. (b)		4,589		2,447
CSR Ltd.		23,244		76,090
DuluxGroup Ltd.		2,534		13,604
Fortescue Metals Group Ltd.		9,035		35,238
Iluka Resources Ltd.		5,655		47,073
Mount Gibson Iron Ltd.		17,164		11,077
Nufarm Ltd.		7,560		30,476
OceanaGold Corp. *		1,209		3,321
OZ Minerals Ltd.		16,240		65,162
PanAust Ltd.		1,898		4,065

				320,063


Media 0.2%
APN News & Media Ltd. *		6,500		4,499
Seven West Media Ltd.		12,558		21,788
Southern Cross Media Group Ltd.		11,960		11,969
Ten Network Holdings Ltd. *		77,105		18,390
Village Roadshow Ltd.		520		3,618

				60,264


Real Estate 0.8%
Australand Property Group		5,330		22,383
CFS Retail Property Trust Group		21,980		44,200
Charter Hall Retail REIT		3,500		12,996
Cromwell Property Group		3,536		3,324
Dexus Property Group		66,676		75,146
Goodman Group		11,050		57,670
Investa Office Fund		5,810		19,943

See financial notes 45

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
The GPT Group		15,386		57,418

				293,080


Retailing 0.6%
Automotive Holdings Group Ltd.		7,800		29,473
Harvey Norman Holdings Ltd.		11,788		39,140
JB Hi-Fi Ltd.		2,100		33,135
Myer Holdings Ltd.		23,192		52,493
Pacific Brands Ltd.		74,100		36,732
Premier Investments Ltd.		2,702		24,387
Super Retail Group Ltd.		468		4,137

				219,497


Software & Services 0.0%
Iress Ltd.		390		3,746


Telecommunication Services 0.0%
iiNET Ltd. (b)		429		3,098


Transportation 0.2%
Sydney Airport		19,240		79,718


Utilities 0.4%
APA Group		8,232		59,670
AusNet Services		26,600		35,204
DUET Group		25,606		58,436

				153,310

				2,204,875

Austria 0.7%


Capital Goods 0.2%
Wienerberger AG		3,744		56,121
Zumtobel AG		949		19,838

				75,959


Energy 0.0%
Schoeller-Bleckmann Oilfield Equipment AG		112		11,802


Insurance 0.1%
Vienna Insurance Group AG Wiener Versicherung Gruppe		714		34,690


Materials 0.1%
Lenzing AG		247		15,051
RHI AG		560		16,825

				31,876


Real Estate 0.1%
IMMOFINANZ AG *		11,128		34,959


Transportation 0.1%
Flughafen Wien AG		52		4,672
Oesterreichische Post AG		868		40,737

				45,409


Utilities 0.1%
Verbund AG		658		12,923

				247,618

Belgium 1.3%


Diversified Financials 0.3%
Ackermans & van Haaren N.V.		168		20,378
Gimv N.V.		336		16,462
Groupe Bruxelles Lambert S.A.		559		55,091

				91,931


Energy 0.0%
Euronav S.A. *		325		3,970


Health Care Equipment & Services 0.1%
AGFA-Gevaert N.V. *		3,705		10,683
Arseus N.V.		65		3,547

				14,230


Materials 0.2%
Nyrstar N.V. *(b)		10,780		41,846
Tessenderlo Chemie N.V. *		1,521		45,669

				87,515


Media 0.1%
Telenet Group Holding N.V. *		854		50,024


Real Estate 0.1%
Befimmo S.A.		140		11,339
Cofinimmo		208		25,732

				37,071


Retailing 0.1%
D’Ieteren S.A. N.V.		1,106		46,028


Technology Hardware & Equipment 0.1%
Barco N.V.		322		22,878
EVS Broadcast Equipment S.A.		238		10,302

				33,180


Telecommunication Services 0.2%
Mobistar S.A. *		3,536		70,074


Transportation 0.0%
bpost S.A.		286		7,062


Utilities 0.1%
Elia System Operator S.A. N.V.		700		34,235

				475,320

Canada 8.9%


Automobiles & Components 0.2%
Linamar Corp.		728		42,120
Martinrea International, Inc.		2,380		31,353

				73,473


Banks 0.3%
Canadian Western Bank		560		20,996
Genworth MI Canada, Inc.		871		30,913
Home Capital Group, Inc.		442		22,093
Laurentian Bank of Canada		490		22,482

				96,484


Capital Goods 0.7%
Aecon Group, Inc.		1,428		21,800
ATS Automation Tooling Systems, Inc. *		247		3,035
Bird Construction, Inc.		1,064		14,772
CAE, Inc.		3,094		38,335
MacDonald, Dettwiler & Associates Ltd.		504		38,573
New Flyer Industries, Inc.		299		3,776
Richelieu Hardware Ltd.		91		4,161
Russel Metals, Inc. (b)		2,030		68,269
Toromont Industries Ltd.		1,482		37,147
Wajax Corp.		700		23,780

46 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
WSP Global, Inc.		532		17,891

				271,539


Commercial & Professional Services 0.5%
Morneau Shepell, Inc.		234		3,678
Newalta Corp.		1,078		21,754
Progressive Waste Solutions Ltd.		1,792		46,437
Ritchie Bros. Auctioneers, Inc.		1,050		25,003
Stantec, Inc.		420		28,690
Transcontinental, Inc., Class A		2,912		40,563

				166,125


Consumer Durables & Apparel 0.2%
Dorel Industries, Inc., Class B		1,050		35,573
Gildan Activewear, Inc.		780		44,826
Lululemon Athletica, Inc. *		238		9,503

				89,902


Consumer Services 0.0%
Great Canadian Gaming Corp. *		234		4,260


Diversified Financials 0.3%
AGF Management Ltd., Class B		3,038		34,840
CI Financial Corp.		1,833		60,292
Dundee Corp., Class A *		1,365		23,783

				118,915


Energy 2.2%
Advantage Oil & Gas Ltd. *		6,500		40,267
AltaGas Ltd.		1,162		56,335
Calfrac Well Services Ltd.		952		18,000
Enbridge Income Fund Holdings, Inc.		130		3,873
Enerflex Ltd.		1,946		37,637
Ensign Energy Services, Inc.		2,800		42,100
Freehold Royalties Ltd.		700		16,778
Gibson Energy, Inc.		1,794		60,282
Gran Tierra Energy, Inc. *		1,792		12,043
Keyera Corp.		756		66,669
Lightstream Resources Ltd.		9,240		53,494
MEG Energy Corp. *		104		3,713
Mullen Group Ltd.		1,586		42,430
NuVista Energy Ltd. *		1,680		18,043
Parkland Fuel Corp.		1,851		35,271
Pason Systems, Inc.		560		17,888
Peyto Exploration & Development Corp.		896		31,826
Precision Drilling Corp.		5,395		68,933
Savanna Energy Services Corp.		1,834		13,306
ShawCor Ltd.		871		47,318
Trican Well Service Ltd.		2,898		41,971
Trilogy Energy Corp.		117		3,115
Trinidad Drilling Ltd.		2,769		25,527
Veresen, Inc.		3,374		57,915

				814,734


Food & Staples Retailing 0.2%
The Jean Coutu Group PJC, Inc., A Shares		1,470		30,572
The North West Co., Inc.		1,400		31,801

				62,373


Food, Beverage & Tobacco 0.2%
Cott Corp.		2,800		21,011
Maple Leaf Foods, Inc.		2,509		46,838
Rogers Sugar, Inc.		949		4,278

				72,127


Insurance 0.1%
Industrial Alliance Insurance & Financial Services, Inc.		994		43,013


Materials 2.0%
Agnico Eagle Mines Ltd.		1,690		64,780
Alamos Gold, Inc.		377		3,475
Canexus Corp.		611		3,013
Canfor Corp. *		924		21,483
Cascades, Inc.		1,352		7,865
CCL Industries, Inc., Class B		294		30,719
Centerra Gold, Inc.		5,712		34,543
Chemtrade Logistics Income Fund		939		18,611
Dominion Diamond Corp. *		1,289		17,504
Eldorado Gold Corp.		5,200		43,096
Franco-Nevada Corp.		336		18,975
HudBay Minerals, Inc.		4,316		43,767
IAMGOLD Corp. *		13,143		52,948
Labrador Iron Ore Royalty Corp.		143		3,954
Lundin Mining Corp. *		9,800		52,580
Major Drilling Group International, Inc.		2,198		16,534
Methanex Corp.		1,162		77,877
Nevsun Resources Ltd.		884		3,667
New Gold, Inc. *		2,380		15,424
Pan American Silver Corp.		2,100		30,200
SEMAFO, Inc. *		1,118		4,988
Sherritt International Corp.		17,038		67,068
Silver Wheaton Corp.		910		22,785
Thompson Creek Metals Co., Inc. *		8,162		23,551
West Fraser Timber Co., Ltd.		1,204		61,102

				740,509


Media 0.4%
Aimia, Inc.		2,691		42,793
Cineplex, Inc.		910		34,361
Cogeco Cable, Inc.		420		24,277
Corus Entertainment, Inc., B Shares		1,442		32,502
Entertainment One Ltd.		650		3,827

				137,760


Real Estate 0.4%
Boardwalk Real Estate Investment Trust		253		16,061
Calloway Real Estate Investment Trust		560		13,768
Canadian Real Estate Investment Trust		294		13,110
Cominar Real Estate Investment Trust		195		3,471
Dream Office Real Estate Investment Trust		130		3,484
First Capital Realty, Inc.		854		15,210
FirstService Corp.		65		3,580
Granite Real Estate Investment Trust		644		24,086
H&R Real Estate Investment Trust		1,339		28,551
RioCan Real Estate Investment Trust		1,365		34,089

				155,410


Retailing 0.3%
Dollarama, Inc.		378		32,258
Hudson’s Bay Co.		377		5,707
Reitmans (Canada) Ltd., Class A		4,718		25,922
Sears Canada, Inc.		3,146		42,517

				106,404


Software & Services 0.2%
Constellation Software, Inc.		26		6,459
DH Corp. (b)		1,001		30,009

See financial notes 47

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Open Text Corp. (b)		602		33,898

				70,366


Telecommunication Services 0.1%
Manitoba Telecom Services, Inc.		1,040		29,606


Transportation 0.2%
TransForce, Inc.		1,960		50,574
Westshore Terminals Investment Corp.		462		15,405

				65,979


Utilities 0.4%
Capital Power Corp.		2,072		53,674
Just Energy Group, Inc.		4,721		28,115
Northland Power, Inc.		840		14,016
Superior Plus Corp.		4,578		62,630

				158,435

				3,277,414

Denmark 1.3%


Banks 0.2%
Jyske Bank A/S *		676		36,932
Sydbank A/S *		1,378		42,466

				79,398


Capital Goods 0.2%
NKT Holding A/S		585		34,546
Rockwool International A/S, B Shares		130		20,480

				55,026


Consumer Durables & Apparel 0.1%
Pandora A/S		448		33,569


Food, Beverage & Tobacco 0.1%
Royal UNIBREW *		112		19,921
Schouw & Co.		390		18,756

				38,677


Health Care Equipment & Services 0.2%
Coloplast A/S, Class B		494		41,103
GN Store Nord A/S		1,118		25,480
William Demant Holding A/S *		140		10,842

				77,425


Insurance 0.1%
Topdanmark A/S *		658		20,348
Tryg A/S		294		29,265

				49,613


Materials 0.2%
Chr Hansen Holding A/S		448		18,266
Novozymes A/S, B Shares		1,131		52,631

				70,897


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
H. Lundbeck A/S		1,261		26,576


Software & Services 0.0%
SimCorp A/S		574		16,948


Transportation 0.1%
D/S Norden A/S		1,170		37,132
Dfds A/S		65		5,545

				42,677

				490,806

Finland 1.4%


Capital Goods 0.4%
Cargotec Oyj, B Shares		798		29,001
Cramo Oyj		812		14,567
Konecranes Oyj		1,092		34,737
Outotec Oyj		2,795		25,274
Ramirent Oyj		1,443		12,887
Uponor Oyj		1,248		19,250

				135,716


Commercial & Professional Services 0.0%
Caverion Corp.		676		5,458


Consumer Durables & Apparel 0.1%
Amer Sports Oyj		2,086		41,765


Food, Beverage & Tobacco 0.0%
Raisio plc, V Shares		559		2,828


Materials 0.5%
Huhtamaki Oyj		2,106		56,590
Kemira Oyj		2,639		36,881
Metsa Board Oyj		5,577		25,564
Outokumpu Oyj *		5,200		40,275
Tikkurila Oyj		560		13,300

				172,610


Media 0.1%
Sanoma Oyj		6,630		48,861


Real Estate 0.0%
Sponda Oyj		2,590		13,578


Retailing 0.1%
Stockmann Oyj Abp, B Shares		1,470		18,656


Software & Services 0.2%
Tieto Oyj		2,132		58,131

				497,603

France 4.4%


Automobiles & Components 0.1%
Plastic Omnium S.A.		663		17,532


Banks 0.1%
Natixis		6,496		45,777


Capital Goods 0.3%
Areva S.A. *		1,053		16,977
Mersen		741		20,497
Saft Groupe S.A.		658		24,129
Zodiac Aerospace		1,651		53,987

				115,590


Commercial & Professional Services 0.4%
Bureau Veritas S.A.		1,540		36,675
Derichebourg S.A.		5,628		16,606
Edenred		1,708		50,777
Societe BIC S.A.		416		56,659

				160,717


Consumer Durables & Apparel 0.1%
Beneteau S.A. *		208		3,551
SEB S.A.		532		41,975

				45,526

48 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Consumer Services 0.1%
Club Mediterranee S.A. *		980		27,753


Diversified Financials 0.1%
Eurazeo S.A.		663		50,503


Energy 0.1%
Bourbon S.A.		1,050		30,012
Etablissements Maurel et Prom *		1,232		19,279

				49,291


Food, Beverage & Tobacco 0.1%
Remy Cointreau S.A.		247		19,680
Vilmorin & Cie S.A.		98		11,148

				30,828


Health Care Equipment & Services 0.1%
BioMerieux		210		22,074
Orpea		280		18,511

				40,585


Insurance 0.1%
Euler Hermes Group		221		25,209


Materials 0.3%
Eramet *		442		48,684
Imerys S.A.		650		52,073
Vicat		117		8,528

				109,285


Media 0.6%
Havas S.A.		3,705		30,365
IPSOS		533		15,958
JCDecaux S.A.		741		26,216
Metropole Television S.A.		2,093		39,672
Societe Television Francaise 1		2,964		44,703
Technicolor S.A. - Reg’d *		7,033		54,110

				211,024


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Ipsen S.A.		420		20,112


Real Estate 0.7%
Fonciere Des Regions		572		58,015
Gecina S.A.		260		36,816
ICADE		624		58,168
Klepierre		1,064		50,804
Mercialys S.A.		728		18,076
Nexity S.A.		1,170		47,937

				269,816


Retailing 0.0%
Groupe Fnac *		104		4,626


Software & Services 0.4%
Alten S.A.		490		22,054
Altran Technologies S.A.		2,158		22,487
Dassault Systemes S.A.		616		40,895
Sopra Group S.A.		39		3,712
UBISOFT Entertainment *		2,743		45,633

				134,781


Technology Hardware & Equipment 0.2%
Ingenico		266		25,620
Neopost S.A.		806		53,964

				79,584


Telecommunication Services 0.1%
Iliad S.A.		126		27,750


Transportation 0.4%
Aeroports de Paris		455		60,622
Bollore S.A.		65		41,097
Groupe Eurotunnel S.A. - Reg’d		3,809		49,129
Norbert Dentressangle S.A.		26		3,716

				154,564

				1,620,853

Germany 3.5%


Automobiles & Components 0.2%
ElringKlinger AG		364		12,346
Grammer AG		336		14,782
Leoni AG		702		43,372
SAF-Holland S.A.		195		2,705

				73,205


Banks 0.1%
Aareal Bank AG		494		22,159


Capital Goods 0.6%
Bauer AG *		588		11,385
BayWa AG		572		27,003
Deutz AG		2,408		14,241
DMG MORI SEIKI AG		871		25,085
Duerr AG		201		15,523
Heidelberger Druckmaschinen AG *		10,218		31,885
Indus Holding AG		650		34,072
KION Group AG		78		3,202
Krones AG		221		20,287
Norma Group SE		91		4,382
Pfeiffer Vacuum Technology AG		154		13,915
SGL Carbon SE *		546		16,020
Vossloh AG		140		9,120

				226,120


Consumer Durables & Apparel 0.2%
Gerry Weber International AG		308		13,923
Hugo Boss AG		208		29,220
Puma SE		70		17,427

				60,570


Diversified Financials 0.0%
Aurelius AG		104		3,938


Health Care Equipment & Services 0.5%
Celesio AG		4,147		141,204
Rhoen Klinikum AG		1,820		57,104

				198,308


Insurance 0.0%
Talanx AG *		434		15,106


Materials 0.4%
Evonik Industries AG		312		11,277
Fuchs Petrolub SE		364		14,636
Symrise AG		1,209		64,751
Wacker Chemie AG		442		52,625

				143,289


Media 0.3%
Axel Springer SE		676		40,149
Kabel Deutschland Holding AG		429		60,690

				100,839

See financial notes 49

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Gerresheimer AG		476		34,484
Stada Arzneimittel AG		966		38,643

				73,127


Real Estate 0.1%
Deutsche Euroshop AG		294		13,953
GAGFAH S.A. *		1,274		25,004

				38,957


Retailing 0.1%
Fielmann AG		308		19,912
Takkt AG		208		3,796

				23,708


Semiconductors & Semiconductor Equipment 0.1%
Aixtron SE *		1,540		20,254
Kontron AG *		2,268		13,569
SMA Solar Technology AG *		378		12,149

				45,972


Software & Services 0.3%
Bechtle AG		364		28,902
Software AG		1,162		30,061
United Internet AG - Reg’d		715		30,792
Wirecard AG		78		2,921

				92,676


Technology Hardware & Equipment 0.1%
Jenoptik AG		826		10,929
Wincor Nixdorf AG		780		41,621

				52,550


Telecommunication Services 0.1%
Drillisch AG		91		3,487
Telefonica Deutschland Holding AG *		6,695		51,033

				54,520


Transportation 0.2%
Fraport AG Frankfurt Airport Services Worldwide		624		42,412
Hamburger Hafen und Logistik AG		611		14,812
Sixt SE		208		7,691

				64,915

				1,289,959

Hong Kong 2.8%


Automobiles & Components 0.0%
Xinyi Glass Holdings Ltd. (b)		28,000		17,667


Banks 0.2%
Bank of East Asia Ltd.		13,000		55,354
Wing Hang Bank Ltd. (d)(e)		1,200		19,354

				74,708


Capital Goods 0.1%
Johnson Electric Holdings Ltd.		5,875		22,931


Consumer Durables & Apparel 0.1%
Techtronic Industries Co.		14,000		42,722


Consumer Services 0.2%
Cafe de Coral Holdings Ltd.		2,600		9,376
Galaxy Entertainment Group Ltd.		1,300		9,796
MGM China Holdings Ltd.		800		2,648
SJM Holdings Ltd.		14,000		35,225
Wynn Macau Ltd.		5,600		21,460

				78,505


Diversified Financials 0.2%
First Pacific Co., Ltd.		52,000		60,587


Food & Staples Retailing 0.0%
Dairy Farm International Holdings Ltd.		900		9,360


Media 0.0%
Television Broadcasts Ltd.		2,800		17,649


Real Estate 1.1%
Great Eagle Holdings Ltd.		3,000		11,032
Hang Lung Group Ltd.		13,000		72,631
Hang Lung Properties Ltd.		14,000		46,244
Henderson Land Development Co., Ltd.		4,400		29,153
Hongkong Land Holdings Ltd.		13,000		89,050
Hysan Development Co., Ltd.		1,000		4,903
Sino Land Co., Ltd.		28,000		49,496
Swire Properties Ltd.		5,600		18,787
Wheelock & Co., Ltd.		13,000		68,102

				389,398


Retailing 0.2%
Chow Sang Sang Holdings International Ltd.		13,000		32,642
Giordano International Ltd.		22,000		13,058
Luk Fook Holdings International Ltd.		5,600		17,558

				63,258


Technology Hardware & Equipment 0.1%
VTech Holdings Ltd.		2,800		34,322


Telecommunication Services 0.0%
Hutchison Telecommunications Hong Kong Holdings Ltd.		28,000		12,175


Transportation 0.6%
Cathay Pacific Airways Ltd.		28,000		52,025
MTR Corp., Ltd.		13,000		51,579
Orient Overseas International Ltd.		13,000		77,244
Pacific Basin Shipping Ltd.		66,000		40,536

				221,384

				1,044,666

Ireland 1.0%


Capital Goods 0.6%
DCC plc		1,872		111,175
Fly Leasing Ltd. ADR		286		4,147
Grafton Group plc		4,914		52,638
Kingspan Group plc		2,015		35,154

				203,114


Consumer Services 0.1%
Paddy Power plc		338		21,660


Food & Staples Retailing 0.0%
Fyffes plc		2,132		2,893


Food, Beverage & Tobacco 0.1%
C&C Group plc		5,551		31,587
Glanbia plc		1,372		20,963

				52,550


Health Care Equipment & Services 0.1%
UDG Healthcare plc		5,941		33,546

50 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Materials 0.1%
James Hardie Industries plc CDI		2,352		28,180


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
ICON plc *		130		6,440


Transportation 0.0%
Aer Lingus Group plc		6,500		11,601
Irish Continental Group plc		884		3,435

				15,036

				363,419

Israel 1.2%


Banks 0.2%
Bank Hapoalim B.M.		9,087		51,567
Israel Discount Bank Ltd., A Shares *		13,188		22,175
Mizrahi Tefahot Bank Ltd. *		1,470		18,064

				91,806


Capital Goods 0.2%
Discount Investment Corp. - Reg’d *		3,861		31,789
Elbit Systems Ltd.		416		24,796

				56,585


Energy 0.2%
Delek Group Ltd.		78		28,416
Oil Refineries Ltd. *		58,352		19,296
Paz Oil Co., Ltd.		182		28,088

				75,800


Food & Staples Retailing 0.0%
Shufersal Ltd.		3,367		9,605


Materials 0.2%
The Israel Corp., Ltd. *		98		55,311


Software & Services 0.2%
Check Point Software Technologies Ltd. *		924		65,622
NICE Systems Ltd.		455		17,609

				83,231


Telecommunication Services 0.2%
B Communications Ltd.		156		3,089
Cellcom Israel Ltd.		3,692		43,279
Partner Communications Co., Ltd. *		4,290		31,005

				77,373

				449,711

Italy 2.4%


Automobiles & Components 0.1%
Piaggio & C S.p.A. *		7,150		21,699


Banks 0.4%
Banca Carige S.p.A. *		53,610		8,559
Banca Popolare di Milano Scarl *		90,545		72,215
Banca Popolare di Sondrio Scarl		8,130		37,095
Credito Valtellinese Scarl *		22,792		26,344

				144,213


Capital Goods 0.2%
Astaldi S.p.A.		1,339		11,790
C.I.R. - Compagnie Industriali Riunite S.p.A *		20,832		30,294
Danieli & C Officine Meccaniche S.p.A.		616		14,605

				56,689


Consumer Durables & Apparel 0.2%
De’Longhi S.p.A.		826		17,615
Geox S.p.A. *(b)		3,523		12,576
Indesit Co. S.p.A. *		1,248		17,836
Prada S.p.A. (b)		1,700		12,053
Safilo Group S.p.A. *		644		13,386
Tod’s S.p.A.		112		12,436

				85,902


Consumer Services 0.2%
Autogrill S.p.A. *		3,304		27,788
Gtech S.p.A. (b)		1,430		34,112

				61,900


Energy 0.2%
ERG S.p.A.		3,016		42,349
Saras S.p.A. *		30,842		36,928

				79,277


Food & Staples Retailing 0.0%
MARR S.p.A.		182		2,853


Food, Beverage & Tobacco 0.1%
Davide Campari-Milano S.p.A.		2,652		20,488
Parmalat S.p.A.		8,750		29,390

				49,878


Health Care Equipment & Services 0.0%
Sorin S.p.A. *		4,830		12,215


Insurance 0.1%
Mediolanum S.p.A.		1,277		9,512
Societa Cattolica di Assicurazioni Scarl		756		16,510
Unipol Gruppo Finanziario S.p.A.		3,874		21,177

				47,199


Materials 0.1%
Buzzi Unicem S.p.A.		2,925		44,423


Media 0.1%
RCS MediaGroup S.p.A. *		11,518		17,720


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Recordati S.p.A.		1,274		20,809


Real Estate 0.0%
Beni Stabili S.p.A.		18,252		14,858


Retailing 0.0%
World Duty Free S.p.A. *		416		4,784


Technology Hardware & Equipment 0.0%
Esprinet S.p.A.		312		2,904


Transportation 0.2%
Ansaldo STS S.p.A.		1,773		18,777
ASTM S.p.A.		1,404		19,196
Societa Iniziative Autostradali e Servizi S.p.A.		1,876		21,189

				59,162


Utilities 0.4%
ACEA S.p.A.		2,156		29,307
Enel Green Power S.p.A.		14,911		41,246
Hera S.p.A.		17,766		50,032

See financial notes 51

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Iren S.p.A.		20,454		28,963

				149,548

				876,033

Japan 37.6%


Automobiles & Components 3.2%
Aisan Industry Co., Ltd.		1,700		14,008
Akebono Brake Industry Co., Ltd.		2,800		12,452
Calsonic Kansei Corp.		10,000		57,756
Exedy Corp.		1,400		38,785
FCC Co., Ltd. (b)		1,400		24,123
Futaba Industrial Co., Ltd.		5,600		31,265
G-Tekt Corp.		400		4,189
Keihin Corp.		2,800		39,594
Koito Manufacturing Co., Ltd.		3,300		90,279
KYB Co., Ltd.		3,000		14,150
Mitsuba Corp.		300		4,961
Mitsubishi Motors Corp.		4,200		47,828
Musashi Seimitsu Industry Co., Ltd.		1,400		31,683
NGK Spark Plug Co., Ltd.		2,500		73,038
Nifco, Inc.		1,400		47,370
Nippon Seiki Co., Ltd.		1,000		22,313
Nissan Shatai Co., Ltd.		3,500		55,894
Nissin Kogyo Co., Ltd.		1,400		25,309
NOK Corp.		2,800		60,590
Pacific Industrial Co., Ltd.		800		6,007
Press Kogyo Co., Ltd.		1,000		4,014
Riken Corp.		1,000		4,370
Sanden Corp.		3,000		18,251
Showa Corp.		1,500		16,850
Tachi-S Co., Ltd.		1,400		21,185
Takata Corp.		1,400		27,815
The Yokohama Rubber Co., Ltd.		5,500		48,920
Tokai Rika Co., Ltd.		2,800		55,658
Tokai Rubber Industries Ltd.		1,500		14,266
Topre Corp.		400		6,118
Toyo Tire & Rubber Co., Ltd.		2,000		32,709
Toyoda Gosei Co., Ltd.		2,800		53,394
Toyota Boshoku Corp. (b)		4,200		46,009
TS Tech Co., Ltd.		1,100		29,521
Unipres Corp.		2,800		55,388
Yorozu Corp. (b)		1,400		22,775

				1,158,837


Banks 2.0%
Aozora Bank Ltd.		10,000		34,172
Fukuoka Financial Group, Inc.		14,000		67,921
Hokuhoku Financial Group, Inc.		28,000		55,792
North Pacific Bank Ltd.		1,400		5,687
Senshu Ikeda Holdings, Inc.		600		3,177
Seven Bank Ltd.		8,400		34,122
Shinsei Bank Ltd.		18,000		37,946
Suruga Bank Ltd.		1,000		19,021
The 77 Bank Ltd.		3,000		16,201
The Awa Bank Ltd.		1,000		5,843
The Bank of Kyoto Ltd.		2,000		17,616
The Chiba Bank Ltd.		3,000		21,168
The Chugoku Bank Ltd.		1,800		27,272
The Daishi Bank Ltd.		5,000		17,953
The Gunma Bank Ltd.		5,000		29,504
The Hachijuni Bank Ltd.		4,000		24,181
The Higo Bank Ltd.		1,000		5,304
The Hiroshima Bank Ltd.		6,000		28,994
The Hyakugo Bank Ltd.		1,000		4,004
The Iyo Bank Ltd.		2,800		28,435
The Joyo Bank Ltd.		5,000		25,990
The Juroku Bank Ltd.		5,000		19,108
The Kagoshima Bank Ltd.		1,000		6,449
The Keiyo Bank Ltd.		1,000		5,140
The Musashino Bank Ltd.		500		17,134
The Nishi-Nippon City Bank Ltd.		14,000		36,656
The Ogaki Kyoritsu Bank Ltd.		14,000		38,812
The San-In Godo Bank Ltd.		1,000		7,056
The Shiga Bank Ltd.		1,000		5,795
The Shizuoka Bank Ltd.		6,000		62,319
TOMONY Holdings, Inc.		700		2,958
Yamaguchi Financial Group, Inc.		4,000		39,390

				751,120


Capital Goods 7.1%
Aica Kogyo Co., Ltd.		1,400		33,502
Amada Co., Ltd.		6,000		56,601
Asahi Diamond Industrial Co., Ltd.		1,400		19,676
Central Glass Co., Ltd.		14,000		52,154
Chiyoda Corp.		2,000		21,909
Chudenko Corp.		200		3,217
CKD Corp.		1,500		14,222
COMSYS Holdings Corp.		4,200		80,293
Daifuku Co., Ltd.		1,600		18,990
Daihen Corp.		1,000		4,043
DMG Mori Seiki Co., Ltd.		1,700		21,437
Ebara Corp.		13,000		73,456
Fuji Electric Co., Ltd.		14,000		67,787
Fuji Machine Manufacturing Co., Ltd.		1,500		14,295
Fujikura Ltd.		14,000		68,595
Fujitec Co., Ltd.		1,500		17,572
Furukawa Co., Ltd. (b)		4,000		9,241
Futaba Corp.		1,400		21,589
Glory Ltd.		1,400		42,383
GS Yuasa Corp.		8,000		48,207
Hazama Ando Corp.		600		4,430
Hitachi Construction Machinery Co., Ltd.		2,800		55,092
Hitachi Koki Co., Ltd.		1,400		11,792
Hitachi Zosen Corp.		2,900		14,237
Hoshizaki Electric Co., Ltd.		900		44,010
Inaba Denki Sangyo Co., Ltd.		1,400		47,976
Inabata & Co., Ltd.		2,900		28,837
Iseki & Co., Ltd.		1,000		2,686
Iwatani Corp.		9,000		70,347
Kandenko Co., Ltd.		4,000		21,562
Kanematsu Corp.		28,000		46,898
Keihan Electric Railway Co., Ltd.		14,000		62,126
Kitz Corp.		2,800		14,986
Komori Corp.		1,600		18,590
Kuroda Electric Co., Ltd.		2,800		43,125
Kyowa Exeo Corp.		4,200		57,369
Kyudenko Corp.		1,000		11,657
Mabuchi Motor Co., Ltd.		300		25,528
Maeda Corp.		2,800		25,578
Maeda Road Construction Co., Ltd.		2,000		33,749
Makino Milling Machine Co., Ltd.		1,000		7,431
Meidensha Corp.		1,000		4,024
Minebea Co., Ltd.		7,000		87,732
Mirait Holdings Corp.		2,900		33,080

52 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
MISUMI Group, Inc.		1,400		43,596
Miura Co., Ltd.		800		27,646
Nabtesco Corp.		1,400		32,276
Nachi-Fujikoshi Corp.		3,000		19,984
Namura Shipbuilding Co., Ltd.		400		3,723
NGK Insulators Ltd.		3,500		88,271
Nichias Corp.		2,600		17,369
Nichiha Corp.		300		3,078
Nippo Corp.		1,500		29,513
Nippon Densetsu Kogyo Co., Ltd.		1,000		16,769
Nippon Steel & Sumikin Bussan Corp.		2,000		7,836
Nishimatsu Construction Co., Ltd.		14,000		74,794
Nishio Rent All Co., Ltd.		100		4,582
Nisshinbo Holdings, Inc.		4,000		37,310
Nitta Corp.		100		2,441
Nitto Boseki Co., Ltd.		1,000		4,149
Nitto Kogyo Corp.		100		2,069
Noritz Corp.		1,400		24,109
NTN Corp.		14,000		58,892
Oiles Corp.		100		2,534
OKUMA Corp.		1,400		11,253
Okumura Corp.		3,000		17,558
OSG Corp.		1,400		23,921
Penta-Ocean Construction Co., Ltd.		7,500		27,579
Ryobi Ltd.		3,000		8,952
Sanki Engineering Co., Ltd. (b)		5,000		38,071
Sankyo Tateyama, Inc.		1,400		27,088
Sanwa Holdings Corp.		4,000		29,302
Shinmaywa Industries Ltd.		2,400		23,588
SHO-BOND Holdings Co., Ltd.		100		4,158
Sintokogio Ltd.		1,400		9,380
Tadano Ltd.		1,300		23,401
Taikisha Ltd.		1,400		33,246
Takara Standard Co., Ltd.		2,400		21,254
Takasago Thermal Engineering Co., Ltd.		1,500		18,944
The Japan Steel Works Ltd.		9,000		38,899
The Nippon Road Co., Ltd.		2,000		11,262
THK Co., Ltd.		2,800		66,385
Toa Corp. (b)		4,000		7,431
Toda Corp.		8,000		42,201
Toshiba Machine Co., Ltd.		1,000		4,428
Toshiba Plant Systems & Services Corp.		1,500		25,398
Totetsu Kogyo Co., Ltd.		400		9,926
Toyo Engineering Corp.		4,000		19,368
Trusco Nakayama Corp.		1,400		36,049
Tsubakimoto Chain Co.		2,600		22,175
Ushio, Inc.		2,800		31,373
Yamazen Corp.		1,700		12,960
Yuasa Trading Co., Ltd.		3,000		6,295

				2,614,797


Commercial & Professional Services 0.9%
Aeon Delight Co., Ltd.		700		17,203
Daiseki Co., Ltd.		100		1,794
Duskin Co., Ltd.		1,500		26,655
Kokuyo Co., Ltd.		4,200		33,556
Meitec Corp.		100		3,225
Moshi Moshi Hotline, Inc.		1,400		13,840
Nissha Printing Co., Ltd.		1,400		18,193
Nomura Co., Ltd.		400		3,720
Okamura Corp.		1,000		8,182
Park24 Co., Ltd.		1,400		24,392
Sato Holdings Corp.		500		14,439
Sohgo Security Services Co., Ltd.		2,800		69,754
Temp Holdings Co., Ltd.		1,400		48,381
Toppan Forms Co., Ltd.		2,600		26,304

				309,638


Consumer Durables & Apparel 2.0%
Alpine Electronics, Inc.		1,500		23,940
Asics Corp.		2,800		57,437
Casio Computer Co., Ltd.		5,500		95,933
Fujitsu General Ltd.		1,000		13,919
Funai Electric Co., Ltd.		1,800		19,597
Gunze Ltd.		14,000		39,621
Haseko Corp.		5,200		43,098
Heiwa Corp.		200		4,572
Kurabo Industries Ltd.		14,000		24,797
Misawa Homes Co., Ltd.		200		2,222
Mizuno Corp.		1,000		5,814
Onward Holdings Co., Ltd.		5,000		33,402
PanaHome Corp.		1,400		10,134
Pioneer Corp. *		16,800		52,235
Rinnai Corp.		400		35,539
Roland Corp.		200		3,635
Sangetsu Co., Ltd.		1,400		38,057
Sankyo Co., Ltd.		1,300		49,868
Seiren Co., Ltd.		400		3,600
Tamron Co., Ltd.		1,400		29,432
Token Corp.		260		11,851
Tomy Co., Ltd. (b)		2,800		15,255
TSI Holdings Co., Ltd.		5,600		38,650
Wacoal Holdings Corp.		3,000		29,831
Yamaha Corp.		4,400		63,193

				745,632


Consumer Services 0.8%
Accordia Golf Co., Ltd.		1,500		17,962
Doutor Nichires Holdings Co., Ltd.		1,100		18,032
Dynam Japan Holdings Co., Ltd.		1,800		4,831
HIS Co., Ltd.		800		23,911
McDonald’s Holdings Co. Japan Ltd. (b)		1,400		34,567
MOS Food Services, Inc.		1,400		29,918
Plenus Co., Ltd.		1,400		33,570
Resorttrust, Inc.		1,300		28,569
Round One Corp.		1,900		12,382
Royal Holdings Co., Ltd.		1,400		23,004
Saizeriya Co., Ltd.		1,400		19,150
St Marc Holdings Co., Ltd.		100		5,660
Tokyo Dome Corp.		1,000		4,640
Yoshinoya Holdings Co., Ltd. (b)		1,500		18,540
Zensho Holdings Co., Ltd. (b)		1,400		13,072

				287,808


Diversified Financials 0.7%
Acom Co., Ltd. *		7,200		24,951
AEON Financial Service Co., Ltd.		1,200		27,885
Aiful Corp. *(b)		7,150		31,660
Century Tokyo Leasing Corp.		400		11,840
Daiwa Securities Group, Inc.		4,000		32,578
Fuyo General Lease Co., Ltd.		100		4,009
Hitachi Capital Corp.		1,400		36,872
Jaccs Co., Ltd.		1,000		5,833
Mitsubishi UFJ Lease & Finance Co., Ltd.		4,800		25,644
Orient Corp. *		12,600		29,109

See financial notes 53

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
SBI Holdings, Inc.		2,600		30,834

				261,215


Energy 0.2%
Japan Petroleum Exploration Co.		900		35,087
San-Ai Oil Co., Ltd.		2,000		15,344
Shinko Plantech Co., Ltd.		1,400		10,875

				61,306


Food & Staples Retailing 1.5%
Ain Pharmaciez, Inc.		700		33,893
Arcs Co., Ltd.		1,400		29,648
Cawachi Ltd.		1,400		24,433
Cocokara fine, Inc.		1,300		34,451
Cosmos Pharmaceutical Corp.		100		12,485
FamilyMart Co., Ltd.		1,400		58,757
Heiwado Co., Ltd.		1,500		24,402
Kato Sangyo Co., Ltd.		1,400		30,565
Matsumotokiyoshi Holdings Co., Ltd.		1,400		44,270
Ministop Co., Ltd.		100		1,492
Mitsubishi Shokuhin Co., Ltd.		800		18,906
San-A Co., Ltd.		200		7,123
Sugi Holdings Co., Ltd.		1,100		45,849
Sundrug Co., Ltd. (b)		900		40,025
Tsuruha Holdings, Inc.		800		43,741
Valor Co., Ltd.		2,800		44,930
Welcia Holdings Co., Ltd.		200		5,881
Yaoko Co., Ltd.		100		6,016
Yokohama Reito Co., Ltd.		4,200		33,395

				540,262


Food, Beverage & Tobacco 2.4%
Calbee, Inc.		1,400		48,380
Coca-Cola East Japan Co., Ltd.		1,500		37,556
Dydo Drinco, Inc.		100		4,245
Ezaki Glico Co., Ltd.		2,000		39,120
Fuji Oil Co., Ltd.		2,000		32,921
Hokuto Corp.		1,400		26,495
House Foods Group, Inc. (b)		2,800		50,294
Ito En Ltd. (b)		1,400		32,600
Itoham Foods, Inc.		14,000		67,652
J-Oil Mills, Inc.		1,000		3,321
Kagome Co., Ltd. (b)		2,800		47,302
Kikkoman Corp.		2,500		54,820
Megmilk Snow Brand Co., Ltd.		2,800		36,818
Mitsui Sugar Co., Ltd.		1,000		3,764
Morinaga & Co., Ltd.		14,000		29,783
Morinaga Milk Industry Co., Ltd.		14,000		48,919
Nichirei Corp.		14,000		66,035
Nippon Flour Mills Co., Ltd.		3,000		15,103
Nippon Suisan Kaisha Ltd. *		10,000		29,071
Prima Meat Packers Ltd.		5,000		13,765
Sapporo Holdings Ltd.		14,000		59,970
Takara Holdings, Inc.		2,500		21,659
The Nisshin Oillio Group Ltd.		6,000		21,197
Warabeya Nichiyo Co., Ltd.		1,400		26,764
Yakult Honsha Co., Ltd.		1,400		76,950

				894,504


Health Care Equipment & Services 0.7%
Hogy Medical Co., Ltd.		100		5,612
Miraca Holdings, Inc.		1,400		65,226
Nichii Gakkan Co.		2,800		23,584
Nihon Kohden Corp.		500		27,723
Nikkiso Co., Ltd.		200		2,375
Nipro Corp.		4,200		37,114
Paramount Bed Holdings Co., Ltd.		100		3,085
Ship Healthcare Holdings, Inc.		100		3,196
Sysmex Corp.		1,200		46,494
Toho Holdings Co., Ltd.		2,600		50,406

				264,815


Household & Personal Products 0.5%
Fancl Corp.		3,000		37,484
Kobayashi Pharmaceutical Co., Ltd.		500		32,103
Kose Corp.		800		34,962
Lion Corp.		5,000		29,070
Mandom Corp.		300		11,580
Pigeon Corp.		300		17,760
Pola Orbis Holdings, Inc.		500		19,733

				182,692


Insurance 0.1%
Sony Financial Holdings, Inc.		1,400		22,452


Materials 4.2%
ADEKA Corp.		3,000		40,083
Aichi Steel Corp.		5,000		19,348
Asahi Holdings, Inc.		1,400		24,770
Chugoku Marine Paints Ltd.		1,000		7,499
Daido Steel Co., Ltd. (b)		7,000		30,794
Daio Paper Corp.		3,000		26,741
Dowa Holdings Co., Ltd.		4,000		35,924
Earth Chemical Co., Ltd.		500		19,324
FP Corp.		600		19,319
Fuji Seal International, Inc.		600		20,244
Fujimori Kogyo Co., Ltd.		100		3,090
Hitachi Metals Ltd.		3,000		51,172
Hokuetsu Kishu Paper Co., Ltd.		6,500		28,907
Ishihara Sangyo Kaisha Ltd. *		14,000		12,398
Kansai Paint Co., Ltd.		2,000		31,804
Konishi Co., Ltd.		100		1,981
Kureha Corp.		4,000		19,753
Kyoei Steel Ltd.		1,400		25,969
Lintec Corp.		1,400		29,999
Maruichi Steel Tube Ltd.		1,300		34,588
Mitsubishi Gas Chemical Co., Inc.		13,000		84,218
Mitsubishi Steel Manufacturing Co., Ltd.		6,000		13,457
Nihon Parkerizing Co., Ltd.		1,400		32,222
Nippon Denko Co., Ltd.		6,000		15,883
Nippon Kayaku Co., Ltd.		2,000		24,604
Nippon Light Metal Holdings Co., Ltd.		7,400		11,825
Nippon Paint Co., Ltd.		1,600		39,644
Nippon Shokubai Co., Ltd.		3,000		36,444
Nippon Soda Co., Ltd.		3,500		18,496
Nippon Synthetic Chemical Industry Co., Ltd.		1,000		7,701
Nissan Chemical Industries Ltd.		2,800		50,564
Nisshin Steel Co., Ltd.		700		7,452
Nittetsu Mining Co., Ltd.		1,000		4,389
NOF Corp.		3,000		20,561
Pacific Metals Co., Ltd. *		6,000		25,355
Rengo Co., Ltd.		14,000		65,900
Sakata INX Corp.		400		3,758
Sanyo Chemical Industries Ltd.		1,000		6,623
Sanyo Special Steel Co., Ltd.		6,000		24,720
Sumitomo Bakelite Co., Ltd.		14,000		57,005
Sumitomo Osaka Cement Co., Ltd.		14,000		49,459

54 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Toagosei Co., Ltd.		13,000		54,310
Toho Zinc Co., Ltd.		6,000		25,528
Tokai Carbon Co., Ltd.		14,000		39,486
Tokuyama Corp.		15,000		49,670
Tokyo Ohka Kogyo Co., Ltd.		1,400		37,896
Tokyo Steel Manufacturing Co., Ltd. (b)		7,100		40,733
Topy Industries Ltd.		13,000		25,153
Toyo Ink SC Holdings Co., Ltd.		4,000		18,751
Toyo Kohan Co., Ltd.		2,500		13,886
Toyobo Co., Ltd.		28,000		44,203
UACJ Corp.		2,000		8,490
Yamato Kogyo Co., Ltd.		1,400		46,359
Yodogawa Steel Works Ltd. (b)		5,000		21,562
Zeon Corp.		3,000		30,409

				1,540,423


Media 0.6%
Asatsu-DK, Inc.		1,400		37,006
Avex Group Holdings, Inc.		1,300		21,311
CyberAgent, Inc.		400		13,708
Daiichikosho Co., Ltd.		1,400		40,901
Kadokawa Corp. (b)		300		7,800
SKY Perfect JSAT Holdings, Inc.		4,300		26,367
Toei Co., Ltd.		1,000		5,506
Toho Co., Ltd.		1,900		44,059
Tokyo Broadcasting System Holdings, Inc.		1,400		16,145
TV Asahi Holdings Corp.		400		6,923
Zenrin Co., Ltd.		1,100		12,865

				232,591


Pharmaceuticals, Biotechnology & Life Sciences 0.9%
Hisamitsu Pharmaceutical Co., Inc.		1,400		55,658
Kaken Pharmaceutical Co., Ltd.		500		12,615
Kissei Pharmaceutical Co., Ltd.		1,400		35,052
KYORIN Holdings, Inc.		1,400		31,468
Mochida Pharmaceutical Co., Ltd.		200		13,765
Nichi-iko Pharmaceutical Co., Ltd.		200		3,117
Nippon Shinyaku Co., Ltd.		500		15,907
Rohto Pharmaceutical Co., Ltd.		1,500		21,269
Santen Pharmaceutical Co., Ltd.		1,400		80,859
Sawai Pharmaceutical Co., Ltd.		200		11,416
Sumitomo Dainippon Pharma Co., Ltd.		1,500		20,402
Tsumura & Co. (b)		1,300		33,274

				334,802


Real Estate 1.3%
Advance Residence Investment Corp.		14		34,527
Aeon Mall Co., Ltd.		1,400		30,551
Frontier Real Estate Investment Corp.		1		5,333
Japan Excellent, Inc.		5		6,743
Japan Prime Realty Investment Corp.		13		47,865
Japan Real Estate Investment Corp.		5		27,530
Japan Retail Fund Investment Corp. (b)		14		29,406
Kenedix Office Investment Corp.		1		5,545
Leopalace21 Corp. *		6,100		35,114
MID REIT, Inc.		1		2,402
Mori Trust Sogo REIT, Inc. (b)		13		23,939
Nippon Accommodations Fund, Inc.		1		3,639
Nippon Building Fund, Inc.		13		72,455
Nomura Real Estate Holdings, Inc.		1,400		25,295
Nomura Real Estate Office Fund, Inc.		6		27,838
NTT Urban Development Corp.		1,300		14,917
Orix JREIT, Inc.		14		18,773
Relo Holdings, Inc.		100		6,806
Tokyo Tatemono Co., Ltd.		2,000		17,134
Top REIT, Inc.		1		4,620
United Urban Investment Corp.		14		22,613

				463,045


Retailing 2.2%
ABC-Mart, Inc.		100		5,131
Adastria Holdings Co., Ltd. (b)		560		11,228
Alpen Co., Ltd.		100		1,606
AOKI Holdings, Inc.		200		2,395
Aoyama Trading Co., Ltd.		1,500		37,152
Arcland Sakamoto Co., Ltd.		300		6,954
ASKUL Corp.		100		2,406
Autobacs Seven Co., Ltd. (b)		2,800		44,796
Bic Camera, Inc. (b)		4,200		38,489
Canon Marketing Japan, Inc.		4,200		84,093
Chiyoda Co., Ltd.		1,300		27,368
DCM Holdings Co., Ltd. (b)		7,000		47,572
Don Quijote Holdings Co., Ltd.		1,300		68,951
Doshisha Co., Ltd.		1,400		25,336
Geo Holdings Corp.		2,800		24,608
Gulliver International Co., Ltd.		1,400		12,641
H2O Retailing Corp.		3,000		49,237
Happinet Corp.		400		7,393
Hikari Tsushin, Inc.		300		18,655
Izumi Co., Ltd.		1,400		43,866
Kohnan Shoji Co., Ltd.		1,700		17,886
Komeri Co., Ltd.		1,300		31,848
Rakuten, Inc.		2,600		33,687
Ryohin Keikaku Co., Ltd.		400		44,973
Sanrio Co., Ltd.		100		2,860
The Daiei, Inc. *(b)		31,100		39,217
United Arrows Ltd.		200		7,335
USS Co., Ltd.		2,800		46,224
Xebio Co., Ltd.		1,400		22,964

				806,871


Semiconductors & Semiconductor Equipment 0.5%
Advantest Corp.		3,900		45,350
Dainippon Screen Manufacturing Co., Ltd.		4,000		22,140
Disco Corp.		300		19,204
Sanken Electric Co., Ltd.		2,000		16,653
Shinko Electric Industries Co., Ltd.		2,800		20,484
Sumco Corp. (b)		4,200		36,225
Tokyo Seimitsu Co., Ltd.		500		8,399
Ulvac, Inc. *		1,700		22,926

				191,381


Software & Services 1.6%
Capcom Co., Ltd.		1,400		25,740
Dena Co., Ltd. (b)		1,400		17,466
DTS Corp.		300		6,541
Fuji Soft, Inc.		1,300		31,222
Gree, Inc. (b)		1,400		10,997
Internet Initiative Japan, Inc.		200		4,183
IT Holdings Corp.		4,200		77,543
Itochu Techno-Solutions Corp.		1,100		48,972
NEC Networks & System Integration Corp.		1,400		33,125
NET One Systems Co., Ltd. (b)		4,200		26,198

See financial notes 55

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Nexon Co., Ltd.		100		874
Nihon Unisys Ltd.		2,800		25,875
Nomura Research Institute Ltd.		1,500		47,432
NS Solutions Corp.		500		14,776
NSD Co., Ltd.		1,400		21,926
Obic Co., Ltd.		500		17,158
Otsuka Corp.		1,000		42,451
SCSK Corp.		400		11,440
Square Enix Holdings Co., Ltd.		1,500		34,509
Transcosmos, Inc.		1,400		28,449
Trend Micro, Inc.		1,400		45,146
Yahoo Japan Corp.		7,100		28,637

				600,660


Technology Hardware & Equipment 2.7%
Alps Electric Co., Ltd.		6,000		96,626
Amano Corp.		1,500		16,215
Anritsu Corp.		1,400		11,940
Azbil Corp.		1,500		38,032
Canon Electronics, Inc.		1,400		26,683
Citizen Holdings Co., Ltd.		8,400		59,755
Daiwabo Holdings Co., Ltd.		14,000		28,166
Eizo Corp.		500		12,995
Hamamatsu Photonics K.K.		900		42,841
Hirose Electric Co., Ltd. (b)		300		38,783
Hitachi High-Technologies Corp.		2,800		78,325
Hitachi Kokusai Electric, Inc.		1,000		15,498
Horiba Ltd.		500		18,795
Hosiden Corp. (b)		8,400		45,847
Japan Aviation Electronics Industry Ltd.		1,000		23,035
Macnica, Inc.		600		19,522
Melco Holdings, Inc.		1,400		30,484
Mitsumi Electric Co., Ltd.		7,500		61,510
Nichicon Corp.		1,400		10,229
Nippon Chemi-Con Corp. *		1,000		2,955
Oki Electric Industry Co., Ltd.		14,000		31,670
Riso Kagaku Corp.		500		16,220
Ryosan Co., Ltd.		2,800		61,614
Ryoyo Electro Corp.		400		4,432
Shimadzu Corp.		4,000		35,077
Siix Corp.		200		3,294
Taiyo Yuden Co., Ltd. (b)		2,800		28,300
The Nippon Signal Co., Ltd.		1,400		14,420
Toshiba TEC Corp.		5,000		31,670
Wacom Co., Ltd.		500		2,252
Yaskawa Electric Corp.		3,900		50,193
Yokogawa Electric Corp.		4,200		48,636

				1,006,014


Transportation 1.4%
Fukuyama Transporting Co., Ltd.		4,000		21,639
Hitachi Transport System, Ltd.		2,800		40,483
Japan Airport Terminal Co., Ltd. (b)		800		28,686
Keikyu Corp.		4,600		40,516
Keio Corp.		8,000		61,838
Keisei Electric Railway Co., Ltd.		2,600		26,930
Kintetsu World Express, Inc.		500		19,902
Konoike Transport Co., Ltd.		200		4,293
Mitsubishi Logistics Corp.		1,500		22,510
Mitsui-Soko Co., Ltd.		1,000		4,187
Nankai Electric Railway Co., Ltd.		10,000		49,189
Nippon Konpo Unyu Soko Co., Ltd.		2,800		49,620
Nishi-Nippon Railroad Co., Ltd.		14,000		55,119
Sankyu, Inc.		13,000		65,197
Senko Co., Ltd.		1,000		4,938
Sotetsu Holdings, Inc.		6,000		23,565
The Sumitomo Warehouse Co., Ltd.		1,000		5,400

				524,012


Utilities 0.1%
The Okinawa Electric Power Co., Inc.		1,400		45,618

				13,840,495

Luxembourg 0.4%


Banks 0.0%
Espirito Santo Financial Group S.A. *(d)(e)		8,470		3,305


Commercial & Professional Services 0.1%
Regus plc		8,218		23,584


Consumer Durables & Apparel 0.1%
Samsonite International S.A.		9,600		33,135


Household & Personal Products 0.1%
Oriflame Cosmetics S.A. (b)		1,300		24,895


Materials 0.1%
Ternium S.A.		1,625		42,461


Semiconductors & Semiconductor Equipment 0.0%
Magnachip Semiconductor Corp. *		1,092		13,464


Telecommunication Services 0.0%
Colt Group S.A. *		2,756		6,715

				147,559

Netherlands 2.0%


Capital Goods 0.5%
Aalberts Industries N.V.		1,430		39,735
AerCap Holdings N.V. *		1,079		51,199
Arcadis N.V.		936		30,995
Heijmans N.V. CVA		169		2,345
Royal Imtech N.V. *(b)		25,987		13,144
Sensata Technologies Holding N.V. *		572		28,125
TKH Group N.V.		624		21,124

				186,667


Commercial & Professional Services 0.1%
USG People N.V.		4,004		51,691


Consumer Durables & Apparel 0.1%
TomTom N.V. *		2,782		21,393


Diversified Financials 0.0%
BinckBank N.V.		1,134		12,438


Energy 0.3%
Core Laboratories N.V.		154		24,330
Koninklijke Vopak N.V.		676		34,745
SBM Offshore N.V. *		3,250		49,894

				108,969


Food & Staples Retailing 0.1%
Sligro Food Group N.V.		208		8,239
X5 Retail Group N.V. *		2,080		39,395

				47,634


Food, Beverage & Tobacco 0.2%
Corbion N.V.		2,743		46,031

56 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Koninklijke Wessanen N.V.		4,082		22,744

				68,775


Materials 0.1%
Koninklijke Ten Cate N.V.		1,008		24,981


Real Estate 0.4%
Corio N.V.		1,176		63,332
Eurocommercial Properties N.V.		429		21,128
Vastned Retail N.V.		429		20,925
Wereldhave N.V.		338		31,187

				136,572


Semiconductors & Semiconductor Equipment 0.2%
ASM International N.V.		742		28,881
NXP Semiconductor N.V. *		663		45,429

				74,310


Software & Services 0.0%
Yandex N.V., Class A *		130		3,696

				737,126

New Zealand 0.7%


Consumer Services 0.1%
SKYCITY Entertainment Group Ltd.		9,100		28,795


Energy 0.0%
Z Energy Ltd.		1,222		4,082


Health Care Equipment & Services 0.1%
Fisher & Paykel Healthcare Corp., Ltd.		4,875		20,894


Materials 0.1%
Nuplex Industries Ltd.		8,246		21,053


Media 0.1%
SKY Network Television Ltd.		5,902		32,608


Real Estate 0.0%
Kiwi Income Property Trust		12,610		12,614


Telecommunication Services 0.1%
Chorus Ltd.		17,024		25,010


Transportation 0.1%
Air New Zealand Ltd.		10,647		19,563
Auckland International Airport Ltd.		6,022		18,501
Mainfreight Ltd.		1,260		15,958

				54,022


Utilities 0.1%
Contact Energy Ltd.		5,404		25,107
Infratil Ltd.		9,142		18,481
Mighty River Power Ltd.		2,080		4,196

				47,784

				246,862

Norway 1.1%


Banks 0.1%
Sparebank 1 Nord Norge		559		3,339
SpareBank 1 SR Bank A.S.A.		1,988		19,632
Sparebanken 1 SMN		1,932		18,140

				41,111


Capital Goods 0.1%
Vard Holdings Ltd. *		26,000		21,251


Commercial & Professional Services 0.0%
Tomra Systems A.S.A.		1,820		15,394


Energy 0.2%
Fred. Olsen Energy A.S.A.		784		18,441
Kvaerner A.S.A.		7,533		12,987
TGS Nopec Geophysical Co. A.S.A.		1,694		47,717

				79,145


Food, Beverage & Tobacco 0.1%
Austevoll Seafood A.S.A.		2,296		14,645
Cermaq A.S.A.		1,680		22,165
Leroy Seafood Group A.S.A.		448		16,608

				53,418


Insurance 0.2%
Gjensidige Forsikring A.S.A.		2,506		52,293
Storebrand A.S.A. *		4,472		24,904

				77,197


Materials 0.0%
Borregaard A.S.A.		416		2,916


Media 0.1%
Schibsted A.S.A.		598		30,446


Semiconductors & Semiconductor Equipment 0.2%
REC Silicon A.S.A. *		105,118		56,803


Software & Services 0.1%
Atea A.S.A.		2,324		28,311


Transportation 0.0%
Golden Ocean Group Ltd.		9,841		16,250

				422,242

Portugal 0.3%


Banks 0.1%
Banco BPI S.A. - Reg’d *		7,995		15,417
Banco Espirito Santo S.A. - Reg’d *(d)(e)		45,383		—

				15,417


Capital Goods 0.0%
Mota-Engil, SGPS, S.A.		468		2,892


Food & Staples Retailing 0.2%
Jeronimo Martins, SGPS, S.A.		2,756		37,428
Sonae, SGPS, S.A.		25,779		39,321

				76,749


Materials 0.0%
Semapa-Sociedade de Investimento e Gestao		416		5,652


Media 0.0%
NOS, SGPS		2,590		15,147


Utilities 0.0%
REN - Redes Energeticas Nacionais, SGPS, S.A.		3,432		12,274

				128,131

Singapore 1.9%


Capital Goods 0.4%
COSCO Corp. Singapore Ltd. (b)		28,000		16,267
Sembcorp Marine Ltd.		14,000		44,425

See financial notes 57

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Singapore Technologies Engineering Ltd.		18,000		52,790
United Engineers Ltd.		14,000		31,972

				145,454


Consumer Services 0.1%
Genting Singapore plc		26,000		25,418


Diversified Financials 0.1%
Singapore Exchange Ltd.		4,600		26,834


Food & Staples Retailing 0.1%
Olam International Ltd. (b)		26,000		55,211


Food, Beverage & Tobacco 0.1%
Golden Agri-Resources Ltd.		130,000		53,127


Real Estate 0.7%
Ascendas Real Estate Investment Trust		14,000		26,363
CapitaCommercial Trust		14,000		19,071
CapitaLand Ltd.		26,000		69,169
CapitaMall Trust		14,000		22,437
City Developments Ltd.		6,000		48,223
Global Logistic Properties Ltd.		13,000		29,689
Keppel Land Ltd.		3,000		8,342
Suntec Real Estate Investment Trust		14,000		20,474
UOL Group Ltd.		3,000		15,265

				259,033


Semiconductors & Semiconductor Equipment 0.0%
Kulicke & Soffa Industries, Inc. *		299		4,392


Telecommunication Services 0.1%
M1 Ltd.		5,800		17,661
StarHub Ltd.		7,000		23,278

				40,939


Transportation 0.3%
Neptune Orient Lines Ltd. *(b)		42,000		33,823
SATS Ltd.		13,000		31,564
Singapore Post Ltd.		14,000		19,352
SMRT Corp., Ltd.		14,000		17,557

				102,296

				712,704

Spain 2.2%


Banks 0.5%
Bankia S.A. *		60,411		117,132
Bankinter S.A.		7,319		60,746
Liberbank S.A. *		3,536		3,288

				181,166


Capital Goods 0.7%
Abengoa S.A.		312		1,882
Abengoa S.A. B Shares (b)		14,800		85,192
Construcciones y Auxiliar de Ferrocarriles S.A.		29		11,492
Duro Felguera S.A.		585		3,275
Gamesa Corp. Tecnologica S.A. *		6,594		83,156
Obrascon Huarte Lain S.A.		663		24,326
Sacyr S.A. *		3,549		19,933
Zardoya Otis S.A.		2,067		30,058

				259,314


Commercial & Professional Services 0.1%
Prosegur Cia de Seguridad S.A.		3,220		21,885


Consumer Services 0.0%
Melia Hotels International S.A.		247		2,753
NH Hotel Group S.A. *		494		2,658

				5,411


Diversified Financials 0.1%
Bolsas y Mercados Espanoles S.A.		806		33,426


Energy 0.1%
Tecnicas Reunidas S.A.		364		19,953


Food, Beverage & Tobacco 0.2%
Ebro Foods S.A.		1,703		34,545
Viscofan S.A.		560		31,298

				65,843


Insurance 0.1%
Grupo Catalana Occidente S.A.		550		18,669


Materials 0.1%
Acerinox S.A.		4,046		62,087
Vidrala S.A.		78		3,591

				65,678


Media 0.1%
Atresmedia Corp de Medios de Comunicaion S.A.		936		13,697
Mediaset Espana Comunicacion S.A. *		3,549		40,736
Promotora de Informaciones S.A., Class A *		23,465		9,427

				63,860


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Almirall S.A. *		871		13,687
Grifols S.A.		770		33,473

				47,160


Software & Services 0.1%
Indra Sistemas S.A.		2,938		44,272

				826,637

Sweden 2.1%


Capital Goods 0.4%
B&B Tools AB, B Shares		208		4,371
Haldex AB		1,352		17,455
Indutrade AB		403		17,400
Lindab International AB *		1,400		13,455
Nibe Industrier AB, B Shares		624		17,276
Peab AB		6,123		43,916
Saab AB, Class B		1,358		36,720

				150,593


Commercial & Professional Services 0.2%
AF AB, B Shares		195		3,203
Intrum Justitia AB		770		23,935
Loomis AB, B Shares		1,261		37,443

				64,581


Consumer Durables & Apparel 0.2%
JM AB		1,378		44,970
Nobia AB		2,041		15,370

				60,340


Consumer Services 0.0%
Betsson AB *		117		4,045

58 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Diversified Financials 0.2%
Lundbergforetagen AB, B Shares		533		23,190
Ratos AB, B Shares		6,071		49,334

				72,524


Energy 0.1%
Lundin Petroleum AB *		1,105		20,638


Food & Staples Retailing 0.1%
Axfood AB		468		23,342


Food, Beverage & Tobacco 0.0%
AAK AB		238		13,991


Health Care Equipment & Services 0.1%
Elekta AB, B Shares (b)		1,950		22,280


Materials 0.2%
BillerudKorsnas AB		2,028		29,411
Hexpol AB		210		17,788
Holmen AB, B Shares		1,378		44,060

				91,259


Media 0.1%
Eniro AB *		2,548		7,138
Modern Times Group AB, B Shares		949		35,857

				42,995


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Meda AB, A Shares		3,262		44,008


Real Estate 0.2%
Castellum AB		1,400		22,894
Fabege AB		1,560		20,565
Kungsleden AB		2,691		18,297

				61,756


Retailing 0.1%
Bilia AB		676		18,085
Clas Ohlson AB, B Shares		715		13,718

				31,803


Technology Hardware & Equipment 0.1%
Hexagon AB, B Shares		1,330		43,613


Transportation 0.0%
SAS AB *		11,060		17,928

				765,696

Switzerland 3.2%


Banks 0.1%
Banque Cantonale Vaudoise - Reg’d		42		22,906
Valiant Holding AG - Reg’d		238		22,310

				45,216


Capital Goods 0.7%
AFG Arbonia-Forster Holding AG - Reg’d *		481		12,552
Belimo Holding AG - Reg’d		4		10,478
Bucher Industries AG - Reg’d		84		25,039
Daetwyler Holding AG		112		14,834
Georg Fischer AG - Reg’d *		91		60,312
Implenia AG - Reg’d *		252		15,931
Meyer Burger Technology AG *		1,170		12,749
OC Oerlikon Corp. AG - Reg’d *		1,988		28,219
Rieter Holding AG - Reg’d *		78		17,493
Sulzer AG - Reg’d		392		52,133

				249,740


Commercial & Professional Services 0.2%
DKSH Holding AG		308		24,213
Gategroup Holding AG *		897		22,576
Kaba Holding AG, B Shares - Reg’d *		42		20,694

				67,483


Consumer Durables & Apparel 0.1%
Forbo Holding AG - Reg’d *		18		18,583


Consumer Services 0.1%
Kuoni Reisen Holding AG - Reg’d *		94		27,763


Diversified Financials 0.4%
GAM Holding AG *		3,237		63,089
Julius Baer Group Ltd. *		1,274		58,049
Partners Group Holding AG		84		22,214

				143,352


Food, Beverage & Tobacco 0.1%
Barry Callebaut AG - Reg’d *		19		23,339
Emmi AG - Reg’d *		70		25,414

				48,753


Health Care Equipment & Services 0.3%
Nobel Biocare Holding AG - Reg’d *		2,145		39,113
Sonova Holding AG - Reg’d		322		51,613
Straumann Holding AG - Reg’d		78		19,137

				109,863


Insurance 0.1%
Helvetia Holding AG - Reg’d		84		41,869


Materials 0.2%
Ems-Chemie Holding AG - Reg’d		65		28,318
Ferrexpo plc		1,586		3,479
Schmolz + Bickenbach AG - Reg’d *		19,740		28,451

				60,248


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Actelion Ltd. - Reg’d *		624		76,787
Galenica AG - Reg’d		46		43,697

				120,484


Real Estate 0.1%
Allreal Holding AG - Reg’d *		84		11,547
Swiss Prime Site AG - Reg’d *		299		23,931

				35,478


Retailing 0.2%
Dufry AG - Reg’d *		182		31,100
Valora Holding AG - Reg’d *		104		24,074

				55,174


Software & Services 0.0%
Temenos Group AG - Reg’d *		455		17,637


Technology Hardware & Equipment 0.1%
Kudelski S.A.		182		2,722
Logitech International S.A. - Reg’d		3,653		50,257

				52,979


Transportation 0.2%
Flughafen Zuerich AG - Reg’d		42		27,516
Panalpina Welttransport Holding AG - Reg’d		299		42,539

				70,055

See financial notes 59

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Utilities 0.0%
Alpiq Holding AG - Reg’d *		39		4,254

				1,168,931

United Kingdom 12.9%


Banks 0.0%
The Paragon Group of Cos. plc		2,054		11,765


Capital Goods 1.8%
Ashtead Group plc		4,004		65,133
Bodycote plc		2,951		34,061
Brammer plc		377		2,692
Chemring Group plc		6,300		23,986
Fenner plc		3,003		18,144
Galliford Try plc		1,690		36,346
HellermannTyton Group plc		663		3,369
Interserve plc		3,263		35,874
Keller Group plc		1,988		30,358
Kier Group plc		910		25,767
Lavendon Group plc		4,494		14,796
Melrose Industries plc		7,800		35,325
Morgan Advanced Materials plc		6,202		32,764
Morgan Sindall Group plc		2,067		28,835
QinetiQ Group plc		15,106		54,339
Rotork plc		650		29,751
Senior plc		5,012		23,798
Speedy Hire plc		19,810		20,974
Spirax-Sarco Engineering plc		780		38,343
Ultra Electronics Holdings plc		910		26,976
Vesuvius plc		9,074		70,074

				651,705


Commercial & Professional Services 1.2%
Berendsen plc		3,354		59,433
Cape plc		4,238		21,889
De La Rue plc		3,289		38,836
HomeServe plc		5,018		26,893
Intertek Group plc		1,261		58,659
Mears Group plc		1,664		13,016
Michael Page International plc		5,850		44,273
Mitie Group plc		8,424		44,181
PayPoint plc		182		3,240
Rentokil Initial plc		27,248		57,380
RPS Group plc		4,277		19,753
Shanks Group plc		13,507		23,722
WS Atkins plc		1,235		28,571

				439,846


Consumer Durables & Apparel 0.6%
Bellway plc		2,028		53,753
Berkeley Group Holdings plc		882		35,125
Bovis Homes Group plc		1,526		21,390
Crest Nicholson Holdings plc		637		3,796
Guinness Peat Group plc *		62,296		32,853
Persimmon plc *		3,978		87,469
The Vitec Group plc		312		3,134

				237,520


Consumer Services 0.9%
Betfair Group plc		1,053		19,097
Bwin.Party Digital Entertainment plc		1,521		2,281
Dignity plc		130		3,092
Enterprise Inns plc *		25,337		52,598
Greene King plc		3,757		51,444
J.D. Wetherspoon plc		1,911		23,628
Ladbrokes plc		23,075		51,006
Marston’s plc		15,940		39,232
Merlin Entertainments plc (c)		507		2,896
Mitchells & Butlers plc *		6,526		44,458
Spirit Pub Co. plc		15,600		19,495
The Restaurant Group plc		2,380		25,455

				334,682


Diversified Financials 1.5%
Aberdeen Asset Management plc		6,300		45,450
Ashmore Group plc (b)		3,780		22,097
Brewin Dolphin Holdings plc		559		2,739
Close Brothers Group plc		1,742		39,143
Hargreaves Lansdown plc		156		2,907
Henderson Group plc		11,895		45,851
IG Group Holdings plc		4,228		42,621
Intermediate Capital Group plc		5,530		37,471
International Personal Finance plc		3,406		29,216
Investec plc		7,420		67,590
Jupiter Fund Management plc		3,500		21,826
London Stock Exchange Group plc		2,002		67,926
Provident Financial plc		1,768		62,805
Schroders plc		780		31,556
Tullett Prebon plc		5,304		23,827

				543,025


Energy 0.3%
Afren plc *		2,236		3,620
EnQuest plc *		11,648		23,310
Hargreaves Services plc		854		11,226
Hunting plc		1,950		28,790
Premier Oil plc		5,590		32,307

				99,253


Food & Staples Retailing 0.1%
Greggs plc		4,134		37,554


Food, Beverage & Tobacco 0.3%
Britvic plc		2,223		25,326
Cranswick plc		1,263		27,834
Dairy Crest Group plc		5,096		34,962
Devro plc		715		2,897
Greencore Group plc		5,278		23,342
Premier Foods plc *		9,893		7,065

				121,426


Health Care Equipment & Services 0.1%
Synergy Health plc		826		20,577


Household & Personal Products 0.1%
PZ Cussons plc		4,225		25,863


Insurance 0.9%
Admiral Group plc		2,392		53,033
Beazley plc		6,860		28,710
Catlin Group Ltd.		7,210		61,546
Hiscox Ltd.		4,706		50,723
Jardine Lloyd Thompson Group plc		1,274		21,962
Lancashire Holdings Ltd.		5,200		54,104
Phoenix Group Holdings		3,900		47,994
St. James’s Place plc		377		4,489

				322,561

60 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Materials 0.9%
African Barrick Gold plc		4,459		17,299
Alent plc		3,444		20,076
Croda International plc		1,064		38,557
DS Smith plc		11,752		55,428
Elementis plc		4,576		21,324
Essentra plc		1,834		26,103
Evraz plc		35,750		66,971
Polyus Gold International Ltd. *		1,014		3,187
Randgold Resources Ltd.		403		34,033
RPC Group plc		2,600		24,483
Synthomer plc		3,374		13,140
Victrex plc		624		18,011

				338,612


Media 0.3%
Daily Mail & General Trust plc, A Shares		1,599		23,050
Trinity Mirror plc *		14,625		50,034
UBM plc		5,122		53,846

				126,930


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Genus plc		602		11,238
Hikma Pharmaceuticals plc		702		20,134

				31,372


Real Estate 0.8%
Derwent London plc		406		18,819
Hammerson plc		6,669		67,284
Intu Properties plc		8,512		48,346
Savills plc		2,268		24,238
SEGRO plc		9,464		58,170
Shaftesbury plc		273		3,105
The British Land Co. plc		6,890		83,588

				303,550


Retailing 0.9%
Debenhams plc		42,700		47,122
Dixons Carphone plc		17,914		102,521
Dunelm Group plc		208		3,040
Halfords Group plc		5,915		46,857
Howden Joinery Group plc		3,262		19,145
John Menzies plc		1,470		15,124
Lookers plc		8,281		19,426
N Brown Group plc		2,158		15,877
Pendragon plc		18,928		9,980
Sports Direct International plc *		1,378		16,603
WH Smith plc		2,717		52,117

				347,812


Semiconductors & Semiconductor Equipment 0.2%
ARM Holdings plc		2,431		39,202
CSR plc		2,184		28,509

				67,711


Software & Services 0.2%
AVEVA Group plc		364		12,731
Fidessa Group plc		392		14,895
Micro Focus International plc		1,736		25,126
Moneysupermarket.com Group plc		1,222		3,967
Playtech plc		325		3,886
Telecity Group plc		260		3,200
Xchanging plc		6,422		19,651

				83,456


Technology Hardware & Equipment 0.7%
Domino Printing Sciences plc		1,391		13,387
Electrocomponents plc		10,413		42,248
Halma plc		3,341		34,290
Laird plc		6,708		32,463
Pace plc		4,270		23,472
Premier Farnell plc		7,007		22,703
Spectris plc		1,183		38,252
Spirent Communications plc		15,600		26,711
TT electronics plc		5,530		15,613

				249,139


Telecommunication Services 0.2%
Jazztel plc *		234		3,054
Kcom Group plc		10,164		16,753
TalkTalk Telecom Group plc		7,865		39,486

				59,293


Transportation 0.8%
BBA Aviation plc		8,526		45,763
easyJet plc		1,988		44,076
Go-Ahead Group plc		988		36,147
National Express Group plc		14,560		61,999
Northgate plc		5,642		47,693
Royal Mail plc		1,378		10,216
Stagecoach Group plc		5,538		33,662
Stobart Group Ltd.		6,706		13,977
Stolt-Nielsen Ltd.		756		16,522

				310,055

				4,763,707

Total Common Stock
(Cost $35,153,834)				36,598,367




Other Investment Companies 2.2% of net assets

United States 2.2%


Equity Fund 0.1%
iShares MSCI EAFE Small - Cap ETF		600		30,762


Securities Lending Collateral 2.1%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (a)		754,883		754,883

Total Other Investment Companies
(Cost $784,332)				785,645




Preferred Stock 0.4% of net assets

Germany 0.3%


Automobiles & Components 0.1%
Porsche Automobil Holding SE		574		52,358


Capital Goods 0.1%
Jungheinrich AG		322		19,695


Health Care Equipment & Services 0.0%
Draegerwerk AG & Co. KGaA (b)		130		12,339

See financial notes 61

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Materials 0.1%
Fuchs Petrolub SE		728		29,971

				114,363

Italy 0.1%


Insurance 0.1%
Unipol Gruppo Finanziario S.p.A.		5,746		28,852

Sweden 0.0%


Transportation 0.0%
SAS AB		104		5,788

Total Preferred Stock
(Cost $160,752)				149,003



End of Investments.


*		Non-income producing security.
(a)		The rate shown is the 7-day yield.
(b)		All or a portion of this security is on loan. Securities on loan were valued at $754,835.
(c)		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 $2,896 or 0.0% of net assets.
(d)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(e)		Illiquid security. At the period end, the value of these amounted to $22,659 or 0.1% of net assets.


ADR —		American Depositary Receipt
CDI —		CHESS Depositary Interest
CVA —		Dutch Certificate
ETF —		Exchange Traded Fund
Reg’d —		Registered
REIT —		Real Estate Investment Trust

62 See financial notes

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings as of August 31, 2014 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)

	87	.3%	Common Stock		37,624,680		40,121,876
	2	.2%	Other Investment Companies		871,586		1,016,981
	10	.8%	Preferred Stock		4,356,162		4,971,631


	100	.3%	Total Investments		42,852,428		46,110,488
	(0	.3)%	Other Assets and Liabilities, Net				(124,294	)


	100	.0%	Net Assets				45,986,194


	Number		Value
Security	of Shares		($)

Common Stock 87.3% of net assets

Brazil 7.0%


Banks 1.3%
Banco Bradesco S.A.		10,823		193,576
Banco do Brasil S.A.		22,400		350,283
Itau Unibanco Holding S.A.		4,150		68,995

				612,854


Capital Goods 0.2%
Embraer S.A.		8,320		81,097


Diversified Financials 0.1%
BM&FBovespa S.A.		12,320		74,331


Energy 2.4%
Cosan Ltd., A Shares		4,396		63,742
Petroleo Brasileiro S.A.		91,200		902,401
Ultrapar Participacoes S.A.		5,360		138,195

				1,104,338


Food, Beverage & Tobacco 0.7%
AMBEV S.A.		17,600		128,212
BRF S.A.		3,713		99,399
JBS S.A.		19,945		90,207

				317,818


Materials 1.3%
Companhia Siderurgica Nacional S.A.		28,800		126,395
Usinas Siderurgicas de Minas Gerais S.A. *		5,815		19,491
Vale S.A.		35,446		461,303

				607,189


Software & Services 0.2%
Cielo S.A.		4,000		75,011


Telecommunication Services 0.2%
Oi S.A.		6,400		4,262
Tim Participacoes S.A.		12,800		71,793

				76,055


Transportation 0.1%
CCR S.A.		5,538		50,144


Utilities 0.5%
Centrais Eletricas Brasileiras S.A.		24,128		87,883
Companhia de Saneamento Basico do Estado de Sao Paulo		6,064		57,969
CPFL Energia S.A.		6,976		70,429

				216,281

				3,215,118

Chile 1.0%


Banks 0.1%
Banco Santander Chile		755,984		44,792


Energy 0.2%
Empresas COPEC S.A.		7,696		96,736


Food & Staples Retailing 0.1%
Cencosud S.A.		17,344		52,041


Transportation 0.1%
Lan Airlines S.A. *		3,280		40,577


Utilities 0.5%
Empresa Nacional de Electricidad S.A.		41,920		64,045
Enersis S.A.		454,432		152,973

				217,018

				451,164

China 15.0%


Automobiles & Components 0.2%
Dongfeng Motor Group Co., Ltd., H Shares		37,500		69,483


Banks 5.1%
Agricultural Bank of China Ltd., H Shares		256,000		118,253
Bank of China Ltd., H Shares		1,136,000		527,680
Bank of Communications Co., Ltd., H Shares		86,000		62,807
BOC Hong Kong Holdings Ltd.		27,000		90,753
China CITIC Bank Corp., Ltd., H Shares		80,000		50,476
China Construction Bank Corp., H Shares		1,078,000		801,182
China Merchants Bank Co., Ltd., H Shares		34,000		65,016
China Minsheng Banking Corp., Ltd., H Shares		40,000		37,574
Industrial & Commercial Bank of China Ltd., H Shares		912,000		604,850

				2,358,591


Capital Goods 0.5%
China Communications Construction Co., Ltd., H Shares		96,000		69,986
China Railway Construction Corp., Ltd., H Shares		48,000		45,955
China Railway Group Ltd., H Shares		112,000		57,950

See financial notes 63

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings (Unaudited) continued


		Number		Value
Security		of Shares		($)
CITIC Pacific Ltd. (c)			32,000		62,264

					236,155


Consumer Durables & Apparel 0.1%
Yue Yuen Industrial Holdings Ltd.			16,000		49,651


Energy 4.2%
China Coal Energy Co., Ltd., H Shares (c)			80,000		48,722
China Petroleum & Chemical Corp., H Shares			714,000		724,120
China Shenhua Energy Co., Ltd., H Shares			52,500		151,400
CNOOC Ltd.			218,000		438,242
PetroChina Co., Ltd., H Shares			416,000		590,440

					1,952,924


Food & Staples Retailing 0.1%
China Resources Enterprise Ltd.			16,000		43,044


Food, Beverage & Tobacco 0.1%
China Mengniu Dairy Co., Ltd.			7,000		32,470


Insurance 0.6%
China Life Insurance Co., Ltd., H Shares			49,000		140,675
China Pacific Insurance (Group) Co., Ltd., H Shares			12,800		48,061
Ping An Insurance Group Co. of China Ltd., H Shares			8,000		65,134

					253,870


Materials 0.2%
China National Building Material Co., Ltd., H Shares			46,000		42,260
Jiangxi Copper Co., Ltd., H Shares			32,000		56,567

					98,827


Real Estate 0.2%
China Overseas Land & Investment Ltd.			24,200		68,071


Retailing 0.3%
Belle International Holdings Ltd.			48,000		61,377
GOME Electrical Appliances Holdings Ltd.			352,000		62,677

					124,054


Software & Services 0.1%
Tencent Holdings Ltd.			3,200		52,231


Technology Hardware & Equipment 0.2%
Kingboard Chemical Holdings Ltd.			21,000		43,625
Lenovo Group Ltd.			44,000		67,219

	��				110,844


Telecommunication Services 3.0%
China Mobile Ltd.			80,000		995,078
China Telecom Corp., Ltd., H Shares			320,000		197,777
China Unicom (Hong Kong) Ltd.			96,000		171,186

					1,364,041


Utilities 0.1%
Huaneng Power International, Inc., H Shares			50,000		60,128

					6,874,384

Colombia 0.3%


Banks 0.1%
Bancolombia S.A.			2,000		30,754


Energy 0.2%
Ecopetrol S.A.			68,592		118,882

					149,636

Czech Republic 0.4%


Telecommunication Services 0.1%
O2 Czech Republic A/S			3,792		53,273


Utilities 0.3%
CEZ A/S			5,168		150,238

					203,511

Greece 0.7%


Consumer Services 0.3%
OPAP S.A.			10,192		162,307


Telecommunication Services 0.2%
Hellenic Telecommunications Organization S.A. *			6,464		92,637


Utilities 0.2%
Public Power Corp. S.A. *			5,504		80,111

					335,055

Hungary 0.6%


Banks 0.2%
OTP Bank plc			5,024		86,849


Energy 0.3%
MOL Hungarian Oil & Gas plc			2,160		106,426


Telecommunication Services 0.1%
Magyar Telekom Telecommunications plc *			39,200		60,399

					253,674

India 2.4%


Automobiles & Components 0.3%
Mahindra & Mahindra Ltd. GDR			2,864		66,731
Tata Motors Ltd. ADR			1,792		86,357

					153,088


Banks 0.5%
ICICI Bank Ltd. ADR			2,112		112,992
State Bank of India GDR - Reg’d			1,136		92,811

					205,803


Energy 1.0%
Reliance Industries Ltd. GDR (a)			13,104		436,101


Materials 0.2%
Tata Steel Ltd. GDR			11,440		97,698


Software & Services 0.4%
Infosys Ltd. ADR			3,200		190,400

					1,083,090

64 See financial notes

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Indonesia 1.0%


Automobiles & Components 0.3%
PT Astra International Tbk		206,400		133,659


Banks 0.4%
PT Bank Central Asia Tbk		57,600		55,150
PT Bank Mandiri (Persero) Tbk		65,600		58,183
PT Bank Rakyat Indonesia (Persero) Tbk		72,000		68,015

				181,348


Telecommunication Services 0.3%
PT Telekomunikasi Indonesia (Persero) Tbk		680,000		154,922

				469,929

Malaysia 2.0%


Banks 0.6%
CIMB Group Holdings Berhad		28,800		67,432
Malayan Banking Berhad		30,400		97,411
Public Bank Berhad		16,000		97,868

				262,711


Capital Goods 0.2%
Sime Darby Berhad		36,800		110,447


Consumer Services 0.1%
Genting Berhad		19,200		58,355


Food, Beverage & Tobacco 0.1%
IOI Corp. Berhad		32,000		48,528


Materials 0.1%
Petronas Chemicals Group Berhad		24,000		47,969


Telecommunication Services 0.6%
Axiata Group Berhad		38,400		84,426
DiGi.com Berhad		27,200		49,447
Maxis Berhad		20,800		43,223
Telekom Malaysia Berhad		43,200		87,168

				264,264


Utilities 0.3%
Tenaga Nasional Berhad		28,800		113,117

				905,391

Mexico 3.5%


Banks 0.2%
Grupo Financiero Banorte S.A.B. de C.V., O Shares		8,500		59,839
Grupo Financiero Santander Mexico S.A.B. de C.V., B Shares		6,400		19,168

				79,007


Capital Goods 0.2%
Alfa S.A.B. de C.V., A Shares		22,950		73,841


Food & Staples Retailing 0.3%
Wal-Mart de Mexico S.A.B. de C.V., Series V		54,400		148,112


Food, Beverage & Tobacco 0.5%
Coca-Cola Femsa S.A.B. de C.V., Series L		4,800		52,330
Fomento Economico Mexicano S.A.B. de C.V.		14,400		139,787
Grupo Bimbo S.A.B. de C.V., Series A		17,600		55,403

				247,520


Materials 0.9%
Cemex S.A.B. de C.V., Series CPO *		200,000		265,688
Grupo Mexico S.A.B. de C.V., Series B		35,200		127,873

				393,561


Media 0.3%
Grupo Televisa S.A.B., Series CPO		20,800		154,765


Telecommunication Services 1.1%
America Movil S.A.B. de C.V., Series L		415,300		507,869

				1,604,675

Peru 0.1%


Banks 0.1%
Credicorp Ltd.		400		62,028

Philippines 0.2%


Telecommunication Services 0.2%
Philippine Long Distance Telephone Co.		1,360		107,615

Poland 2.1%


Banks 0.3%
Bank Pekao S.A.		928		52,272
Powszechna Kasa Oszczednosci Bank Polski S.A.		7,888		94,365

				146,637


Energy 0.4%
Polski Koncern Naftowy Orlen S.A.		16,400		202,246


Insurance 0.2%
Powszechny Zaklad Ubezpieczen S.A.		576		84,490


Materials 0.5%
KGHM Polska Miedz S.A.		5,024		207,097


Telecommunication Services 0.3%
Orange Polska S.A.		35,632		119,689


Utilities 0.4%
PGE S.A.		18,784		128,131
Tauron Polska Energia S.A.		38,208		59,630

				187,761

				947,920

Republic of Korea 17.4%


Automobiles & Components 1.9%
Hyundai Mobis Co., Ltd.		704		204,128
Hyundai Motor Co.		2,016		463,266
Kia Motors Corp.		3,712		224,049

				891,443


Banks 1.4%
Hana Financial Group, Inc.		3,040		127,572
KB Financial Group, Inc.		3,680		150,800
Shinhan Financial Group Co., Ltd.		5,232		270,901

See financial notes 65

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Woori Finance Holdings Co., Ltd. *		6,577		89,190

				638,463


Capital Goods 2.8%
Daelim Industrial Co., Ltd.		640		55,166
Daewoo Shipbuilding & Marine Engineering Co., Ltd.		1,760		43,134
Doosan Heavy Industries & Construction Co., Ltd.		1,350		38,412
Hyundai Engineering & Construction Co., Ltd.		912		57,475
Hyundai Heavy Industries Co., Ltd.		992		140,883
LG Corp.		5,828		407,520
Samsung C&T Corp.		2,240		164,805
Samsung Heavy Industries Co., Ltd.		2,592		69,660
SK Holdings Co., Ltd.		1,472		233,006
SK Networks Co., Ltd. *		8,928		86,555

				1,296,616


Consumer Durables & Apparel 0.8%
LG Electronics, Inc.		4,752		354,309


Energy 0.9%
GS Holdings		3,104		131,788
S-Oil Corp.		1,664		76,886
SK Innovation Co., Ltd.		2,416		224,218

				432,892


Food & Staples Retailing 0.2%
E-Mart Co., Ltd.		288		69,305


Food, Beverage & Tobacco 0.3%
KT&G Corp.		1,472		137,771


Insurance 0.4%
Samsung Fire & Marine Insurance Co., Ltd.		352		96,336
Samsung Life Insurance Co., Ltd.		608		63,861

				160,197


Materials 2.4%
Hanwha Corp.		3,040		90,695
Hyosung Corp.		736		56,908
Hyundai Steel Co.		1,104		82,423
LG Chem Ltd.		688		182,865
Lotte Chemical Corp.		320		51,600
OCI Co., Ltd. *		256		36,736
POSCO		1,872		616,646

				1,117,873


Retailing 0.1%
Lotte Shopping Co., Ltd.		160		52,389


Semiconductors & Semiconductor Equipment 3.6%
Samsung Electronics Co., Ltd.		1,216		1,479,899
SK Hynix, Inc. *		4,352		194,863

				1,674,762


Software & Services 0.7%
NAVER Corp.		80		60,595
SK C&C Co., Ltd.		1,184		248,138

				308,733


Technology Hardware & Equipment 0.9%
LG Display Co., Ltd. *		7,520		259,950
Samsung Electro-Mechanics Co., Ltd.		928		50,246
Samsung SDI Co., Ltd.		768		114,751

				424,947


Telecommunication Services 0.3%
KT Corp.		1,392		48,050
LG Uplus Corp.		6,560		70,844

				118,894


Utilities 0.7%
Korea Electric Power Corp.		6,139		255,502
Korea Gas Corp. *		752		41,829

				297,331

				7,975,925

Russia 11.1%


Banks 0.5%
Sberbank of Russia *		103,680		204,639
VTB Bank OJSC *		24,960,000		25,833

				230,472


Energy 8.9%
Bashneft OAO		736		38,570
Gazprom OAO		446,400		1,588,021
LUKOIL OAO *		28,288		1,567,245
NOVATEK OAO GDR - Reg’d		728		73,237
Rosneft OJSC GDR - Reg’d		8,709		53,177
Surgutneftegas OAO *		748,800		515,293
Tatneft OAO *		38,560		237,025

				4,072,568


Food & Staples Retailing 0.1%
Magnit OJSC *		160		39,250


Materials 0.8%
MMC Norilsk Nickel OJSC		1,448		282,247
Severstal OAO GDR - Reg’d		7,893		76,168
Uralkali OJSC GDR - Reg’d		1,410		26,268

				384,683


Telecommunication Services 0.7%
Mobile Telesystems OJSC ADR		11,200		206,640
Sistema JSFC GDR - Reg’d		4,688		106,652

				313,292


Transportation 0.1%
Aeroflot-Russian Airlines OJSC *		24,000		30,236
Globaltrans Investment plc GDR - Reg’d		3,200		29,280

				59,516

				5,099,781

South Africa 7.0%


Banks 0.8%
Barclays Africa Group Ltd.		4,944		77,437
Nedbank Group Ltd.		2,880		61,930
Standard Bank Group Ltd.		15,856		205,740

				345,107


Capital Goods 0.6%
Aveng Ltd. *		29,488		63,327
Barloworld Ltd.		7,648		72,889

66 See financial notes

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
The Bidvest Group Ltd.		5,680		150,243

				286,459


Consumer Durables & Apparel 0.2%
Steinhoff International Holdings Ltd.		15,632		77,180


Diversified Financials 0.4%
African Bank Investments Ltd. (d)(e)		30,732		896
FirstRand Ltd.		30,304		123,234
Remgro Ltd.		2,336		53,483

				177,613


Energy 1.3%
Sasol Ltd.		10,208		593,433


Food & Staples Retailing 0.1%
Shoprite Holdings Ltd.		4,432		61,446


Food, Beverage & Tobacco 0.1%
Tiger Brands Ltd.		2,032		58,655


Insurance 0.2%
Sanlam Ltd.		18,448		114,483


Materials 1.2%
AngloGold Ashanti Ltd. *		5,456		92,879
Gold Fields Ltd.		33,360		158,121
Impala Platinum Holdings Ltd.		13,936		126,120
Kumba Iron Ore Ltd.		2,304		68,998
Sappi Ltd. *		20,320		84,067

				530,185


Media 0.2%
Naspers Ltd., N Shares		816		104,002


Retailing 0.3%
Imperial Holdings Ltd.		4,528		80,977
Woolworths Holdings Ltd.		6,800		50,805

				131,782


Telecommunication Services 1.6%
MTN Group Ltd.		23,184		525,441
Telkom S.A. SOC Ltd. *		32,144		172,728
Vodacom Group Ltd.		4,960		59,858

				758,027

				3,238,372

Taiwan 12.7%


Banks 0.4%
CTBC Financial Holding Co., Ltd.		80,980		58,926
Mega Financial Holding Co., Ltd.		68,990		59,549
Taishin Financial Holding Co., Ltd.		103,748		52,758

				171,233


Capital Goods 0.3%
Far Eastern New Century Corp.		69,280		74,285
Walsin Lihwa Corp. *		160,000		57,276

				131,561


Consumer Durables & Apparel 0.1%
Pou Chen Corp.		52,000		60,106


Diversified Financials 0.2%
Fubon Financial Holding Co., Ltd.		54,000		88,162


Energy 0.2%
Formosa Petrochemical Corp.		38,000		95,984


Food, Beverage & Tobacco 0.2%
Uni-President Enterprises Corp.		47,980		87,804


Insurance 0.1%
Cathay Financial Holding Co., Ltd.		37,516		64,011


Materials 1.8%
China Steel Corp.		227,640		196,487
Formosa Chemicals & Fibre Corp.		81,000		201,616
Formosa Plastics Corp.		70,000		181,496
Nan Ya Plastics Corp.		80,000		188,689
Taiwan Cement Corp.		49,000		77,867

				846,155


Semiconductors & Semiconductor Equipment 2.7%
Advanced Semiconductor Engineering, Inc.		75,000		93,466
MediaTek, Inc.		10,000		167,110
Siliconware Precision Industries Co.		55,000		80,226
Taiwan Semiconductor Manufacturing Co., Ltd.		183,000		759,171
United Microelectronics Corp.		288,000		131,520

				1,231,493


Technology Hardware & Equipment 6.0%
Acer, Inc. *		208,000		172,229
Asustek Computer, Inc.		24,000		251,317
AU Optronics Corp.		512,000		254,368
Compal Electronics, Inc.		240,000		213,580
Delta Electronics, Inc.		16,400		115,221
Foxconn Technology Co., Ltd.		20,950		52,567
Hon Hai Precision Industry Co., Ltd.		219,864		750,276
HTC Corp. *		40,000		184,005
Innolux Corp.		224,000		113,909
Inventec Corp.		70,000		55,034
Lite-On Technology Corp.		51,210		84,892
Pegatron Corp.		54,000		114,538
Quanta Computer, Inc.		49,000		138,358
Synnex Technology International Corp.		36,000		54,920
Wistron Corp.		113,822		133,279
WPG Holdings Ltd.		48,000		62,548

				2,751,041


Telecommunication Services 0.7%
Chunghwa Telecom Co., Ltd.		65,500		203,575
Far EasTone Telecommunications Co., Ltd.		20,000		42,622
Taiwan Mobile Co., Ltd.		16,000		51,013

				297,210

				5,824,760

Thailand 1.2%


Banks 0.1%
The Siam Commercial Bank PCL NVDR		8,000		46,838


Energy 0.8%
PTT Exploration & Production PCL NVDR		16,000		82,404
PTT PCL NVDR		24,000		241,202
Thai Oil PCL NVDR		38,400		62,217

				385,823

See financial notes 67

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Materials 0.2%
PTT Global Chemical PCL NVDR		35,200		68,328


Telecommunication Services 0.1%
Advanced Info Service PCL NVDR		9,600		62,818

				563,807

Turkey 1.6%


Banks 0.8%
Akbank T.A.S.		20,304		77,530
Turkiye Garanti Bankasi A/S		24,480		96,085
Turkiye Halk Bankasi A/S		8,000		58,759
Turkiye Is Bankasi, C Shares		25,440		65,782
Turkiye Vakiflar Bankasi Tao, D Shares		24,608		56,789

				354,945


Capital Goods 0.2%
KOC Holding A/S		20,128		103,067


Diversified Financials 0.1%
Haci Omer Sabanci Holding A/S		13,200		61,169


Energy 0.3%
Tupras-Turkiye Petrol Rafinerileri A/S		5,118		120,482


Telecommunication Services 0.2%
Turk Telekomunikasyon A/S		13,088		37,967
Turkcell Iletisim Hizmetleri A/S *		13,376		78,411

				116,378

				756,041

Total Common Stock
(Cost $37,624,680)				40,121,876




Other Investment Companies 2.2% of net assets

United States 2.2%


Equity Funds 1.7%
iShares India 50 ETF (c)		12,121		366,902
iShares MSCI Emerging Markets ETF		900		40,554
WisdomTree India Earnings Fund		17,040		388,001

				795,457


Securities Lending Collateral 0.5%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b)		221,524		221,524

Total Other Investment Companies
(Cost $871,586)				1,016,981




Preferred Stock 10.8% of net assets

Brazil 9.3%


Banks 2.7%
Banco Bradesco S.A.		23,089		421,423
Itau Unibanco Holding S.A.		40,614		732,579
Itausa - Investimentos Itau S.A.		17,634		85,902

				1,239,904


Energy 3.1%
Petroleo Brasileiro S.A.		136,000		1,419,231


Food & Staples Retailing 0.1%
Cia Brasileira de Distribuicao		1,107		56,360


Materials 2.1%
Bradespar S.A.		5,120		46,794
Gerdau S.A.		28,352		164,216
Metalurgica Gerdau S.A.		19,780		140,203
Usinas Siderurgicas de Minas Gerais S.A., A Shares *		14,400		52,000
Vale S.A.		48,000		557,109

				960,322


Telecommunication Services 0.4%
Oi S.A.		46,400		30,069
Telefonica Brasil S.A.		6,582		140,756

				170,825


Utilities 0.9%
Centrais Eletricas Brasileiras S.A., B Shares		19,488		107,563
Companhia Energetica de Minas Gerais		21,452		183,692
Companhia Paranaense de Energia - Copel, B Shares		3,568		63,242
Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.		19,536		89,929

				444,426

				4,291,068

Colombia 0.1%


Banks 0.1%
Bancolombia S.A.		3,472		55,018

Republic of Korea 0.8%


Automobiles & Components 0.3%
Hyundai Motor Co.		320		47,340
Hyundai Motor Co. 2nd		432		66,891

				114,231


Consumer Durables & Apparel 0.1%
LG Electronics, Inc.		810		34,790


Materials 0.0%
LG Chem Ltd.		112		19,496


Semiconductors & Semiconductor Equipment 0.4%
Samsung Electronics Co., Ltd.		200		201,193

				369,710

Russia 0.6%


Energy 0.5%
AK Transneft OAO *		101		221,920

68 See financial notes

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Telecommunication Services 0.1%
Rostelecom OJSC *		19,200		33,915

				255,835

Total Preferred Stock
(Cost $4,356,162)				4,971,631



End of Investments.


*		Non-income producing security.
(a)		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 $436,101 or 0.9% of net assets.
(b)		The rate shown is the 7-day yield.
(c)		All or a portion of this security is on loan. Securities on loan were valued at $215,912.
(d)		Illiquid security. At the period end, the value of these amounted to $896 or 0.0% of net assets.
(e)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.


ADR —		American Depositary Receipt
ETF —		Exchange Traded Fund
GDR —		Global Depositary Receipt
NVDR —		Non-Voting Depositary Receipt
Reg’d —		Registered

See financial notes 69

Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8: Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10: Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11: Controls and Procedures.

(a)		Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, Marie Chandoha and Registrant’s Principal Financial Officer, George Pereira, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above.

(b)		During the second fiscal quarter of the period covered by this report, there have been no changes in Registrant’s internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting.

Item 12: Exhibits.

(a)

(1) Code of ethics – not applicable to this semi-annual report.

	(2)		Separate certifications for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the 1940 Act, are attached.

	(3)		Not applicable.

(b)

A certification for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, is attached. This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. section 1350 and is not being filed as part of the Form N-CSR with the Commission.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Schwab Strategic Trust – Schwab U.S. REIT ETF and Fundamental Index ETFs


By:		/s/ Marie Chandoha Marie Chandoha
		Chief Executive Officer

Date: October 16, 2014

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By		/s/ Marie Chandoha
		Marie Chandoha
		Chief Executive Officer

Date: October 16, 2014

By:		/s/ George Pereira George Pereira
		Principal Financial Officer

Date: October 16, 2014

Purchases of Securities

Sales/Maturities of Securities

$43,909,638

$35,679,796