Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-22311
Schwab Strategic Trust
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Marie Chandoha
Schwab Strategic Trust
211 Main Street, San Francisco, California 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 636-7000
Date of fiscal year end: August 31
Date of reporting period: August 31, 2015
Item 1: Report(s) to Shareholders.
Table of Contents
Annual report dated August 31, 2015, enclosed.
Schwab International Equity ETFs
Schwab International
Equity ETF™
Equity ETF™
Schwab International Small-Cap
Equity ETF™
Equity ETF™
Schwab Emerging Markets
Equity ETF™
Equity ETF™
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Schwab International Equity ETFs
Annual Report
August 31, 2015
Schwab International
Equity ETF
Equity ETF
Schwab International Small-Cap
Equity ETF
Equity ETF
Schwab Emerging Markets
Equity ETF
Equity ETF
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In This Report
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Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: SEI Investments Distribution Co. (SIDCO)
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS), which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Charles Schwab & Co, Inc.
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.csimfunds.com.
| Total Returns for the 12 Months Ended August 31, 2015 | |
| Schwab International Equity ETF (Ticker Symbol: SCHF) | |
| Market Price Return1 | -9.20% |
| NAV Return1 | -9.24% * |
| FTSE Developed ex US Index (Net)** | -9.31% |
| ETF Category: Morningstar Foreign Large Blend2 | -9.06% |
| Performance Details | pages 6-7 |
| Schwab International Small-Cap Equity ETF (Ticker Symbol: SCHC) | |
| Market Price Return1 | -9.73% |
| NAV Return1 | -9.29% |
| FTSE Developed Small Cap ex US Liquid Index (Net)** | -9.47% |
| ETF Category: Morningstar Foreign Small/Mid Blend2 | -5.59% |
| Performance Details | pages 8-9 |
| Schwab Emerging Markets Equity ETF (Ticker Symbol: SCHE) | |
| Market Price Return1 | -21.68% |
| NAV Return1 | -21.62% |
| FTSE Emerging Index (Net)** | -21.49% |
| ETF Category: Morningstar Diversified Emerging Markets2 | -23.69% |
| Performance Details | pages 10-11 |
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 cannot be invested in 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 — “FTSE” is a trademark of the London Stock Exchange Group companies (LSEG) and is used by the Schwab International Equity ETFs under license. The Schwab International Equity ETFs are not sponsored, endorsed, sold or promoted by LSEG and LSEG does not make any representation regarding the advisability of investing in shares of the funds. Fees payable under the license are paid by the Adviser.
| * | Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semi-annual reports. |
| ** | The total return cited for the index is calculated net of foreign withholding taxes; the underlying tax rate information is available from FTSE. |
| 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. |
2Schwab International Equity ETFs
From the President
Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.
Dear Shareholder,
At Charles Schwab Investment Management, our goal is to provide foundational products with consistent performance that help investors to build well-diversified portfolios. The Schwab International Equity ETFs track international stock indices constructed by an industry-leading index provider and offer the benefits of ETF investing, including transparency, intraday trading, and potential tax efficiency, at some of the lowest operating expense ratios in the industry.
For the 12-month reporting period ended August 31, 2015, the funds produced negative returns that closely tracked their respective indices. Disappointing global growth weighed on international markets, with emerging markets suffering the steepest losses of the reporting period as a result of falling commodity prices and the deceleration of the Chinese economy. Concerns remained in many regions around the risk of deflation, despite aggressive stimulus policies by several central banks around the globe. Anticipation surrounding a Federal Reserve increase in short-term interest rates added to market volatility, as did the debt crisis in Greece and geopolitical tensions in Russia.
As the Federal Reserve ended its policies of quantitative easing to stimulate the economy, the moves by many other central banks to propel economic growth and combat deflation also created heightened currency volatility. This divergence in policies contributed to the appreciation of the U.S. dollar versus many international currencies, generally reducing returns on overseas
Asset Class Performance Comparison % returns during the 12 months ended 8/31/2015
For index definitions, please see the Glossary.
Data source: Index provider websites and CSIM
Nothing in this report represents a recommendation of a security by the investment adviser.
Management views and portfolio holdings may have changed since the report date.
Schwab International Equity ETFs3
From the President continued
For the 12-month reporting period ended August 31, 2015, the funds produced negative returns that closely tracked their respective indices.
investments in U.S. dollar terms. Reflecting these conditions, the FTSE Developed ex-U.S. Index returned -9.3% and the FTSE Emerging Index returned -21.5%.1
For more information about the Schwab International Equity ETFs, please continue reading this report. In addition, you can find further details about these ETFs by visiting our website at www.csimfunds.com. We are also happy to hear from you at 1-800-435-4000.
Sincerely,
| 1 | The total returns cited for the FTSE Developed ex-U.S. Index and the FTSE Emerging Index are net of foreign withholding taxes. |
Index figures assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Past performance is not an indication of future results.
4Schwab International Equity ETFs
Fund Management
 | Agnes Hong, CFA, Vice President and Head of Passive Equity Products, leads the portfolio management teams of Schwab’s passive equity 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 (currently BlackRock), where she managed institutional index funds and quantitative active funds. Prior to that, Ms. Hong worked in management consulting and product management, servicing global financial services clients. |
 | Ferian Juwono, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors), where he spent over three years as a portfolio manager, managing equity index funds for institutional clients, and nearly two years as a senior business analyst. Prior to that, Mr. Juwono worked for over four years as a senior financial analyst with Union Bank of California. |
 | Chuck Craig, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2012, Mr. Craig worked at Guggenheim Funds (formerly Claymore Group), where he spent over five years as a managing director of portfolio management and supervision, and three years as vice president of product research and development. Prior to that, he worked as an equity research analyst at First Trust Portfolios (formerly Niké Securities), and a trader and analyst at PMA Securities, Inc. |
Schwab International Equity ETFs5
Schwab International Equity ETF
The Schwab International Equity ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the FTSE Developed ex-US Index (the index). The index is comprised of large and mid capitalization companies in developed countries outside the United States, as defined by the index provider. The index defines the large and mid capitalization universe as approximately the top 90% of the eligible universe. The fund invests in a representative sample of securities included in the index which, when taken together, are expected to perform similarly to the index as a whole. Due to the use of representative sampling, the fund may not hold all of the securities included in the index.
Market Highlights. After weakening at the end of 2014, international large-cap equities made relatively steady gains through the first five months of 2015, after which time a combination of concerns began to weigh on international markets, including slowing growth in China, uncertainty over Greek debt negotiations, and a lack of clarity regarding the timing of the U.S. Federal Reserve’s widely anticipated rate hike. Declining energy and metals prices also dampened returns around the globe. Toward the end of the period, market volatility increased dramatically on a global basis, resulting in wide swings in daily market gains and losses. Over the period, the depreciation of many overseas currencies versus the U.S. dollar reduced the returns of international equities in U.S. dollar terms.
Performance. During the 12-month reporting period ended August 31, 2015, the fund closely tracked the index. The fund’s market price return was –9.20% and its NAV return was –9.24%. The index (net) returned –9.31% during the same period.
Contributors and Detractors. From a geographic standpoint, stocks from most countries represented in the fund lost ground for the 12-month reporting period, with only a few posting positive absolute returns. Japan was one of the bright spots, providing the greatest contribution to the fund’s returns. Representing an average weight of approximately 20% of the fund—the fund’s largest country position—the fund’s Japan stocks returned nearly 5% in U.S. dollar terms. The strongest contribution among Japanese companies came from Mitsubishi UFJ Financial Group, one of the world’s largest bank holding/financial services companies. Mitsubishi’s performance was driven by offshore loans and its investment banking business; it returned more than 17% for the fund over the reporting period. KDDI Corporation, a Japanese telecommunications operator, also contributed notably, with the fund’s holding up more than 32%.
Danish stocks also provided meaningful contributions to the returns of the index and the fund. Although representing an average portfolio weight of less than 2%, the fund’s Danish stocks were the strongest performers across the portfolio, up more than 11%. Among them, the strongest contributors to fund performance were Novo Nordisk, a multinational pharmaceutical company that focuses on diabetes care and other biopharmaceuticals, and Pandora, which designs, manufactures and markets jewelry around the world. The fund’s holdings in these two companies returned 22% and 56%, respectively, for the 12-month reporting period.
Stocks from the United Kingdom were among the biggest detractors from the fund’s and the index’s returns. Constituting an average portfolio weight of roughly 18%, the fund’s British stocks fell more than 11% in U.S. dollar terms. Among them, the two weakest contributors to performance were HSBC Holdings, one of the world’s largest banking and financial services institutions, and multinational oil and gas company Royal Dutch Shell; the fund’s holdings in these two companies returned –22% and –31%, respectively.
Canadian stocks also detracted from the performance of the index and the fund. Representing an average weight of less than 8% of them both, the fund’s Canadian stocks fell more than 24% in U.S. dollar terms over the reporting period. Among them, the two companies detracting the most from fund performance for the period were in the banking sector: Royal Bank of Canada fell 23%, and Bank of Nova Scotia fell 29%.
As of 08/31/15:
| Statistics | |
| Number of Holdings | 1,211 |
| Weighted Average Market Cap (millions) | $52,353 |
| Price/Earnings Ratio (P/E) | 17.9 |
| Price/Book Ratio (P/B) | 1.6 |
| Portfolio Turnover Rate1 | 4% |
| Sector Weightings % of Investments | |
| Financials | 26.1% |
| Industrials | 12.9% |
| Consumer Discretionary | 12.8% |
| Health Care | 11.1% |
| Consumer Staples | 10.7% |
| Materials | 7.3% |
| Energy | 5.7% |
| Information Technology | 5.4% |
| Telecommunication Services | 4.4% |
| Utilities | 3.4% |
| Other | 0.2% |
| Total | 100.0% |
| Top Equity Holdings % of Net Assets2 | |
| Nestle S.A. – Reg'd | 1.6% |
| Novartis AG – Reg'd | 1.5% |
| Roche Holding AG | 1.3% |
| Toyota Motor Corp. | 1.1% |
| HSBC Holdings plc | 1.1% |
| Sanofi | 0.8% |
| Bayer AG – Reg'd | 0.8% |
| Novo Nordisk A/S, B Shares | 0.7% |
| GlaxoSmithKline plc | 0.7% |
| Royal Dutch Shell plc, A Shares | 0.7% |
| Total | 10.3% |
Management views and portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of trading and management costs incurred by the fund.
Source of Sector Classification: S&P and MSCI.
| 1 | Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
| 2 | This list is not a recommendation of any security by the investment adviser. |
6Schwab International Equity ETFs
Schwab International Equity ETF
Performance and Fund Facts as of 08/31/15
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.csimfunds.com.
November 3, 2009 – August 31, 2015
Performance of Hypothetical
$10,000 Investment1
Performance of Hypothetical
$10,000 Investment1
Average Annual Total Returns1
| Fund and Inception Date | 1 Year | 5 Years | Since Inception* |
| Fund: Schwab International Equity ETF (11/3/09) | |||
| Market Price Return2 | -9.20% | 6.43% | 4.86% |
| NAV Return2 | -9.24%** | 6.38% | 4.84% |
| FTSE Developed ex US Index (Net)3 | -9.31% | 6.38% | 4.90% |
| ETF Category: Morningstar Foreign Large Blend4 | -9.06% | 5.96% | 4.67% |
Fund Expense Ratio5: 0.08%
Country Weightings % of Investments
| Japan | 22.0% |
| United Kingdom | 18.0% |
| Switzerland | 8.2% |
| France | 8.1% |
| Germany | 7.6% |
| Canada | 6.9% |
| Australia | 5.7% |
| Republic of Korea | 3.4% |
| Hong Kong | 3.1% |
| Spain | 2.9% |
| Sweden | 2.6% |
| Other Countries | 11.5% |
| Total | 100.0% |
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 cannot be invested in directly. Performance results less than one year are not annualized.
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 — “FTSE” is a trademark of the London Stock Exchange Group companies (LSEG) and is used by the fund under license. The Schwab International Equity ETF is not sponsored, endorsed, sold or promoted by LSEG and LSEG does not make any representation regarding the advisability of investing in shares of the fund. Fees payable under the license are paid by the Adviser.
| * | Inception (11/3/09) represents the date that the shares began trading in the secondary market. |
| ** | Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semi-annual reports. |
| 1 | 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 | The total return cited for the index is calculated net of foreign withholding taxes; the underlying tax rate information is available from FTSE. |
| 4 | 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. |
| 5 | As stated in the prospectus. |
Schwab International Equity ETFs7
Schwab International Small-Cap Equity ETF
The Schwab International Small-Cap Equity ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the FTSE Developed Small Cap ex US Liquid Index (the index). The index is comprised of small capitalization companies in developed countries outside the United States, as defined by the index provider. The index defines the small capitalization universe as approximately the bottom 10% of the eligible universe with a minimum free float capitalization of $150 million. The fund invests in a representative sample of securities included in the index which, when taken together, are expected to perform similarly to the index as a whole. Due to the use of representative sampling, the fund may not hold all of the securities included in the index.
Market Highlights. After weakening over the first five months of the reporting period, international small-cap equities recouped much of their losses until May, when a combination of concerns began to weigh on international markets, including slowing growth in China, uncertainty over Greek debt negotiations, and a lack of clarity regarding the timing of the U.S. Federal Reserve’s widely anticipated rate hike. As a result, international small-cap stocks followed the trajectory of most other markets, reversing their gains and closing out the period close to their 12-month low. Declining energy and metals prices also dampened returns around the globe. Toward the end of the period, market volatility increased dramatically on a global basis, resulting in wide swings in daily market gains and losses. Over the period, the depreciation of many overseas currencies versus the U.S. dollar reduced the returns of international equities in U.S. dollar terms.
Performance. During the 12-month reporting period ended August 31, 2015, the fund generally tracked the index. The fund’s market price return was –9.73% and its NAV return was –9.29%. The index (net) returned –9.47% during the same period. Differences between the return of the fund and the return of the index may be attributable to, among other things, the operational and transactional costs incurred by the fund and not the index.
Contributors and Detractors. United Kingdom stocks were the top contributors to the performance of the index and the fund. Shares of British companies represented an average portfolio weight of approximately 20% and returned roughly 3% for the fund in U.S. dollar terms. Among the fund’s UK holdings, the two that contributed the most to fund performance were Betfair Group, one of the world’s largest international online sports betting providers, and Bellway, the fourth-largest homebuilder in the UK. The fund’s holdings in these two companies returned more than 179% and 48%, respectively.
Italian stocks also provided meaningful contributions to the returns of the index and the fund. Representing an average weight of 3.5% of the fund and the index, Italian stocks returned roughly 8% in U.S. dollar terms for the fund while returning nearly 6% for the index. Among the fund’s Italian holdings, the two strongest contributors were Recordati, an international pharmaceutical group that works in a number of therapeutic areas, and Sorin, a medical products company that focuses on cardiovascular diseases. The fund’s holdings in these two companies returned more than 50% and 24%, respectively.
Canadian stocks were among the biggest detractors from the fund’s and the index’s returns. Constituting an average portfolio weight of roughly 16%, the fund’s Canadian stocks fell more than 33% in U.S. dollar terms. The Canadian companies with the most impact were Baytex Energy and Enerplus, two companies relating to oil and gas exploration and production that were negatively affected by sharply falling oil prices during the period; the fund’s holdings in these companies were down more than 86% and 70%, respectively.
Australian stocks also detracted from the performance of the index and the fund. Representing an average weight of less than 5% of the fund, the fund’s and the index’s Australian stocks fell 33% in U.S. dollar terms over the reporting period. Among them, the two companies detracting the most from fund performance for the period were Beach Energy, another oil and gas exploration and production company, and G8 Education, the largest publicly traded child care center operator in Australia. The fund’s holdings in these two companies were down more than 68% and 53%, respectively.
As of 08/31/15:
| Statistics | |
| Number of Holdings | 1,643 |
| Weighted Average Market Cap (millions) | $2,193 |
| Price/Earnings Ratio (P/E) | 26.0 |
| Price/Book Ratio (P/B) | 1.5 |
| Portfolio Turnover Rate1 | 23% |
| Sector Weightings % of Investments | |
| Financials | 21.7% |
| Industrials | 20.8% |
| Consumer Discretionary | 16.7% |
| Information Technology | 9.0% |
| Materials | 8.4% |
| Health Care | 7.1% |
| Consumer Staples | 6.0% |
| Energy | 5.3% |
| Utilities | 2.0% |
| Telecommunication Services | 1.4% |
| Other | 1.6% |
| Total | 100.0% |
| Top Equity Holdings % of Net Assets2 | |
| Deutsche Annington Immobilien SE | 0.9% |
| Gildan Activewear, Inc. | 0.5% |
| Constellation Software, Inc. | 0.4% |
| Dollarama, Inc. | 0.4% |
| Open Text Corp. | 0.3% |
| Onex Corp. | 0.3% |
| Rightmove plc | 0.3% |
| Elisa Oyj | 0.3% |
| Keyera Corp. | 0.3% |
| Bellway plc | 0.3% |
| Total | 4.0% |
Management views and portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of trading and management costs incurred by the fund.
Source of Sector Classification: S&P and MSCI.
| 1 | Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
| 2 | This list is not a recommendation of any security by the investment adviser. |
8Schwab International Equity ETFs
Schwab International Small-Cap Equity ETF
Performance and Fund Facts as of 08/31/15
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.csimfunds.com.
January 14, 2010 – August 31, 2015
Performance of Hypothetical
$10,000 Investment1
Performance of Hypothetical
$10,000 Investment1
Average Annual Total Returns1
| Fund and Inception Date | 1 Year | 5 Years | Since Inception* |
| Fund: Schwab International Small-Cap Equity ETF (1/14/10) | |||
| Market Price Return2 | -9.73% | 7.52% | 5.58% |
| NAV Return2 | -9.29% | 7.64% | 5.62% |
| FTSE Developed Small Cap ex US Liquid Index (Net)3 | -9.47% | 7.68% | 5.80% |
| ETF Category: Morningstar Foreign Small/Mid Blend4 | -5.59% | 8.50% | 6.48% |
Fund Expense Ratio5: 0.18%
Country Weightings % of Investments
| United Kingdom | 19.3% |
| Japan | 18.3% |
| Canada | 13.9% |
| Germany | 5.7% |
| Republic of Korea | 5.4% |
| Australia | 4.3% |
| Italy | 4.0% |
| France | 3.5% |
| Switzerland | 3.5% |
| Sweden | 3.4% |
| Other Countries | 18.7% |
| Total | 100.0% |
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 cannot be invested in directly. Performance results less than one year are not annualized.
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.
Small-company stocks are subject to greater volatility than many other asset classes.
Index ownership — “FTSE” is a trademark of the London Stock Exchange Group companies (LSEG) and is used by the fund under license. The Schwab International Small-Cap Equity ETF is not sponsored, endorsed, sold or promoted by LSEG and LSEG does not make any representation regarding the advisability of investing in shares of the fund. Fees payable under the license are paid by the Adviser.
| * | Inception (1/14/10) 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 | The total return cited for the index is calculated net of foreign withholding taxes; the underlying tax rate information is available from FTSE. |
| 4 | 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. |
| 5 | As stated in the prospectus. |
Schwab International Equity ETFs9
Schwab Emerging Markets Equity ETF
The Schwab Emerging Markets Equity ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the FTSE Emerging Index (the index). The index comprises large and mid capitalization companies in emerging market countries, as defined by the index provider. The index defines the large and mid capitalization universe as approximately the top 90% of the eligible universe. The fund invests in a representative sample of securities included in the index which, when taken together, are expected to perform similarly to the index as a whole. Due to the use of representative sampling, the fund may not hold all of the securities included in the index.
Market Highlights. Despite showing some strength early in the second quarter of 2015, emerging markets equities generally struggled over the reporting period, ultimately succumbing to a series of headwinds including slowing growth and a currency devaluation in China, uncertainty over Greek debt negotiations, and a lack of clarity regarding the timing of the U.S. Federal Reserve’s widely anticipated rate hike. For the 12-month reporting period, not one of the index’s emerging markets countries posted a positive return. Declining energy and metals prices weighed heavily on emerging markets performance, and stock-price volatility increased dramatically toward the end of the period.
Performance. During the 12-month reporting period ended August 31, 2015, the fund closely tracked the index. The fund’s market price return was –21.68% and its NAV return was –21.62%. The index (net) returned –21.49% during the same period.
Contributors and Detractors. Due to weak performance throughout the emerging markets universe for the period, top contributors to the performance of the index and the fund were generally countries whose stocks were down least and, for the most part, came from countries constituting small allocations in the portfolios of both the fund and the index. For the 12-month reporting period, Hungarian stocks, where the fund’s holdings constituted an average weight of roughly 0.3%, provided the strongest contribution to performance. Among them, the fund’s two strongest contributions came from OTP Bank, one of the largest independent financial services providers in Central and Eastern Europe, and integrated oil and gas company MOL. The fund’s holdings in these companies were up more than 14% and nearly 4%, respectively.
Brazilian stocks were among the biggest detractors from the fund’s and the index’s returns. Constituting an average portfolio weight of roughly 10%, the fund’s and the index’s Brazilian stocks fell more than 52% in U.S. dollar terms, as economic growth has steadily eroded as a result of sharply falling commodity prices and inflation has risen. The fund’s holding of Petroleo Brasileiro (Petrobras), which is involved in the entire oil and gas productive chain, was the largest detractor from performance for the period, down more than 75.8%. The fund’s holding of Itaú, the largest bank in Latin American, also detracted notably from the fund’s returns, down more than 53% for the period.
Chinese stocks also detracted from the performance of the index and the fund. Constituting the largest country representation in the fund and the index—at an average portfolio weight of roughly 25%—the fund’s and the index’s Chinese stocks fell more than 7% in U.S. dollar terms. Among them, the two companies detracting the most from fund performance for the period were PetroChina and CNOOC, two of China’s largest oil and gas producers and distributors. The fund’s holdings in these two companies were down more than 39% and 35%, respectively.
As of 08/31/15:
| Statistics | |
| Number of Holdings | 708 |
| Weighted Average Market Cap (millions) | $40,222 |
| Price/Earnings Ratio (P/E) | 13.1 |
| Price/Book Ratio (P/B) | 1.5 |
| Portfolio Turnover Rate1 | 8% |
| Sector Weightings % of Investments | |
| Financials | 30.5% |
| Information Technology | 13.8% |
| Energy | 9.3% |
| Consumer Staples | 8.4% |
| Telecommunication Services | 8.0% |
| Consumer Discretionary | 7.7% |
| Materials | 7.1% |
| Industrials | 7.0% |
| Utilities | 3.8% |
| Health Care | 3.0% |
| Other | 1.4% |
| Total | 100.0% |
| Top Equity Holdings % of Net Assets2 | |
| Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 3.1% |
| Tencent Holdings Ltd. | 3.0% |
| China Mobile Ltd. | 2.2% |
| China Construction Bank Corp., H Shares | 2.1% |
| Naspers Ltd., N Shares | 1.6% |
| Industrial & Commercial Bank of China Ltd., H Shares | 1.4% |
| Hon Hai Precision Industry Co., Ltd. | 1.2% |
| Bank of China Ltd., H Shares | 1.1% |
| Infosys Ltd. | 1.1% |
| America Movil S.A.B. de C.V., Series L | 0.9% |
| Total | 17.7% |
Management views and portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of trading and management costs incurred by the fund.
Source of Sector Classification: S&P and MSCI.
| 1 | Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
| 2 | This list is not a recommendation of any security by the investment adviser. |
10Schwab International Equity ETFs
Schwab Emerging Markets Equity ETF
Performance and Fund Facts as of 08/31/15
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.csimfunds.com.
January 14, 2010 – August 31, 2015
Performance of Hypothetical
$10,000 Investment1
Performance of Hypothetical
$10,000 Investment1
Average Annual Total Returns1
| Fund and Inception Date | 1 Year | 5 Years | Since Inception* |
| Fund: Schwab Emerging Markets Equity ETF (1/14/10) | |||
| Market Price Return2 | -21.68% | -0.89% | -1.22% |
| NAV Return2 | -21.62% | -0.88% | -1.26% |
| FTSE Emerging Index (Net)3 | -21.49% | -0.71% | -0.97% |
| ETF Category: Morningstar Diversified Emerging Markets4 | -23.69% | -2.57% | -2.67% |
Fund Expense Ratio5: 0.14%
Country Weightings % of Investments
| China | 26.3% |
| Taiwan | 13.9% |
| India | 12.4% |
| South Africa | 9.6% |
| Brazil | 7.9% |
| Mexico | 5.5% |
| Russia | 4.2% |
| Malaysia | 4.0% |
| Thailand | 2.7% |
| Other Countries | 13.5% |
| Total | 100.0% |
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 cannot be invested in directly. Performance results less than one year are not annualized.
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.
Emerging markets involve heightened risks related to the same factors as international investing, as well as increased volatility and lower trading volume.
Index ownership — “FTSE” is a trademark of the London Stock Exchange Group companies (LSEG) and is used by the fund under license. The Schwab Emerging Markets Equity ETF is not sponsored, endorsed, sold or promoted by LSEG and LSEG does do not make any representation regarding the advisability of investing in shares of the fund. Fees payable under the license are paid by the Adviser.
| * | Inception (1/14/10) 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 | The total return cited for the index is calculated net of foreign withholding taxes; the underlying tax rate information is available from FTSE. |
| 4 | 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. |
| 5 | As stated in the prospectus. |
Schwab International Equity ETFs11
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you may incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares; and, (2) ongoing costs, including management fees and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning March 1, 2015 and held through August 31, 2015.
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.
| Expense Ratio1 (Annualized) | Beginning Account Value at 3/1/15 | Ending Account Value (Net of Expenses) at 8/31/15 | Expenses Paid During Period2 3/1/15–8/31/15 | |
| Schwab International Equity ETF | ||||
| Actual Return | 0.08% | $1,000.00 | $ 932.00 | $0.39 |
| Hypothetical 5% Return | 0.08% | $1,000.00 | $1,024.80 | $ 0.41 |
| Schwab International Small-Cap Equity ETF | ||||
| Actual Return | 0.18% | $1,000.00 | $ 966.50 | $0.89 |
| Hypothetical 5% Return | 0.18% | $1,000.00 | $ 1,024.29 | $ 0.92 |
| Schwab Emerging Markets Equity ETF | ||||
| Actual Return | 0.14% | $1,000.00 | $ 841.60 | $ 0.65 |
| Hypothetical 5% Return | 0.14% | $1,000.00 | $1,024.49 | $ 0.71 |
| 1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights which covers a 12-month period. |
| 2 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by 365 days of the fiscal year. |
12Schwab International Equity ETFs
Schwab International Equity ETF
Financial Statements
Financial Highlights
| 9/1/14– 8/31/15 | 9/1/13– 8/31/14 | 9/1/12– 8/31/13 | 9/1/11– 8/31/12 | 9/1/10– 8/31/11 | ||
| Per-Share Data ($) | ||||||
| Net asset value at beginning of period | 32.37 | 28.32 | 24.96 | 25.99 | 23.82 | |
| Income (loss) from investment operations: | ||||||
| Net investment income (loss) | 0.87 1 | 0.88 | 0.66 | 0.76 | 0.68 | |
| Net realized and unrealized gains (losses) | (3.85) | 3.87 | 3.42 | (1.04) | 1.96 2 | |
| Total from investment operations | (2.98) | 4.75 | 4.08 | (0.28) | 2.64 | |
| Less distributions: | ||||||
| Distributions from net investment income | (0.84) | (0.70) | (0.72) | (0.75) | (0.47) | |
| Net asset value at end of period | 28.55 | 32.37 | 28.32 | 24.96 | 25.99 | |
| Total return (%) | (9.27) | 16.90 | 16.55 | (0.75) | 11.04 | |
| Ratios/Supplemental Data (%) | ||||||
| Ratios to average net assets: | ||||||
| Total expenses | 0.08 | 0.09 3 | 0.09 | 0.13 | 0.13 | |
| Net investment income (loss) | 2.86 | 3.44 | 3.03 | 3.40 | 3.10 | |
| Portfolio turnover rate4 | 4 | 7 | 9 | 8 | 6 | |
| Net assets, end of period ($ x 1,000) | 4,042,603 | 2,654,016 | 1,464,105 | 768,666 | 634,208 | |
1
Calculated based on the average shares outstanding during the period.
2
The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of sales and repurchases of fund shares in relation to fluctuating market values.
3
Effective April 18, 2014, the annual operating expense ratio was reduced to 0.08%. The ratio presented for the period ended 8/31/14 is a blended ratio.
4
Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
See financial notes 13
Schwab International Equity ETF
Condensed Portfolio Holdings as of August 31, 2015
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™ 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 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.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.1% | Common Stock | 4,119,071,698 | 4,008,525,131 |
| 0.4% | Preferred Stock | 17,399,990 | 16,044,197 |
| 0.0% | Rights | — | 49,248 |
| 0.2% | Other Investment Companies | 6,997,929 | 6,997,929 |
| 99.7% | Total Investments | 4,143,469,617 | 4,031,616,505 |
| 0.3% | Other Assets and Liabilities, Net | 10,986,080 | |
| 100.0% | Net Assets | 4,042,602,585 | |
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Common Stock 99.1% of net assets | |||||
| Australia 5.7% | |||||
| Australia & New Zealand Banking Group Ltd. | 787,934 | 0.4 | 15,601,857 | ||
| BHP Billiton Ltd. | 905,028 | 0.4 | 16,155,978 | ||
| Commonwealth Bank of Australia | 450,750 | 0.6 | 23,992,501 | ||
| National Australia Bank Ltd. | 711,234 | 0.4 | 15,716,825 | ||
| Westpac Banking Corp. | 864,120 | 0.5 | 19,052,412 | ||
| Other Securities | 3.4 | 140,146,500 | |||
| 5.7 | 230,666,073 | ||||
| Austria 0.2% | |||||
| Other Securities | 0.2 | 7,081,698 | |||
| Belgium 1.1% | |||||
| Anheuser-Busch InBev N.V. | 218,307 | 0.6 | 23,839,975 | ||
| Other Securities | 0.5 | 22,295,953 | |||
| 1.1 | 46,135,928 | ||||
| Canada 6.9% | |||||
| Royal Bank of Canada | 394,384 | 0.5 | 21,739,288 | ||
| The Bank of Nova Scotia | 344,088 | 0.4 | 15,573,829 | ||
| The Toronto-Dominion Bank | 510,540 | 0.5 | 20,137,647 | ||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Valeant Pharmaceuticals International, Inc. * | 86,930 | 0.5 | 19,926,930 | ||
| Other Securities | 5.0 | 202,544,114 | |||
| 6.9 | 279,921,808 | ||||
| Denmark 1.6% | |||||
| Novo Nordisk A/S, B Shares | 525,205 | 0.7 | 29,110,379 | ||
| Other Securities | 0.9 | 34,485,974 | |||
| 1.6 | 63,596,353 | ||||
| Finland 0.7% | |||||
| Other Securities | 0.7 | 30,036,567 | |||
| France 8.1% | |||||
| BNP Paribas S.A. | 267,042 | 0.4 | 16,837,136 | ||
| Sanofi | 320,261 | 0.8 | 31,640,011 | ||
| Total S.A. | 559,891 | 0.6 | 25,599,330 | ||
| Other Securities | 6.3 | 253,579,508 | |||
| 8.1 | 327,655,985 | ||||
| Germany 7.2% | |||||
| Allianz SE - Reg'd | 127,440 | 0.5 | 20,312,799 | ||
| BASF SE | 255,174 | 0.5 | 20,534,945 | ||
| Bayer AG - Reg'd | 233,093 | 0.8 | 31,589,797 | ||
| Daimler AG - Reg'd | 263,957 | 0.5 | 21,194,429 | ||
| SAP SE | 253,678 | 0.4 | 17,051,924 | ||
| Siemens AG - Reg'd | 218,756 | 0.5 | 21,682,963 | ||
| Other Securities | 4.0 | 157,313,780 | |||
| 7.2 | 289,680,637 | ||||
| Greece 0.0% | |||||
| Other Securities | 0.0 | 1,068,307 | |||
| Hong Kong 3.1% | |||||
| AIA Group Ltd. | 3,431,938 | 0.5 | 18,975,173 | ||
| Other Securities | 2.6 | 105,741,301 | |||
| 3.1 | 124,716,474 | ||||
| Ireland 0.3% | |||||
| Other Securities | 0.3 | 10,384,695 | |||
| Israel 0.7% | |||||
| Teva Pharmaceutical Industries Ltd. | 270,980 | 0.4 | 17,701,432 | ||
| Other Securities | 0.3 | 9,247,086 | |||
| 0.7 | 26,948,518 | ||||
| Italy 2.2% | |||||
| Other Securities | 2.2 | 88,069,062 | |||
| Japan 21.9% | |||||
| Honda Motor Co., Ltd. | 490,558 | 0.4 | 15,479,587 | ||
| Mitsubishi UFJ Financial Group, Inc. | 4,118,148 | 0.7 | 27,189,258 | ||
| Sumitomo Mitsui Financial Group, Inc. | 377,196 | 0.4 | 15,450,765 | ||
14 See financial notes
Schwab International Equity ETF
Condensed Portfolio Holdings continued
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Toyota Motor Corp. | 745,526 | 1.1 | 44,244,940 | ||
| Other Securities | 19.3 | 784,690,908 | |||
| 21.9 | 887,055,458 | ||||
| Netherlands 2.5% | |||||
| ING Groep N.V. CVA | 1,029,432 | 0.4 | 15,739,210 | ||
| Unilever N.V. CVA | 440,461 | 0.4 | 17,636,523 | ||
| Other Securities | 1.7 | 69,054,009 | |||
| 2.5 | 102,429,742 | ||||
| New Zealand 0.2% | |||||
| Other Securities | 0.2 | 6,445,207 | |||
| Norway 0.5% | |||||
| Other Securities | 0.5 | 21,928,177 | |||
| Portugal 0.1% | |||||
| Other Securities | 0.1 | 5,127,049 | |||
| Republic of Korea 3.4% | |||||
| Samsung Electronics Co., Ltd. GDR | 60,074 | 0.7 | 27,724,151 | ||
| Other Securities | 2.7 | 108,624,566 | |||
| 3.4 | 136,348,717 | ||||
| Singapore 1.1% | |||||
| Other Securities | 1.1 | 45,366,031 | |||
| Spain 2.9% | |||||
| Banco Bilbao Vizcaya Argentaria S.A. | 1,666,131 | 0.4 | 15,426,188 | ||
| Banco Santander S.A. | 3,885,951 | 0.6 | 23,773,969 | ||
| Telefonica S.A. | 1,206,737 | 0.4 | 17,023,548 | ||
| Other Securities | 1.5 | 62,502,400 | |||
| 2.9 | 118,726,105 | ||||
| Sweden 2.6% | |||||
| Other Securities | 2.6 | 103,571,744 | |||
| Switzerland 8.2% | |||||
| Nestle S.A. - Reg'd | 885,532 | 1.6 | 65,289,728 | ||
| Novartis AG - Reg'd | 601,132 | 1.5 | 58,866,863 | ||
| Roche Holding AG | 194,453 | 1.3 | 53,084,734 | ||
| UBS Group AG * | 1,008,761 | 0.5 | 20,893,938 | ||
| Other Securities | 3.3 | 133,836,808 | |||
| 8.2 | 331,972,071 | ||||
| United Kingdom 17.9% | |||||
| AstraZeneca plc | 355,561 | 0.6 | 22,530,338 | ||
| Barclays plc | 4,577,233 | 0.5 | 18,405,518 | ||
| BP plc | 4,995,697 | 0.7 | 27,698,595 | ||
| British American Tobacco plc | 509,842 | 0.7 | 27,280,128 | ||
| BT Group plc | 2,270,932 | 0.4 | 15,275,296 | ||
| Diageo plc | 708,000 | 0.5 | 18,838,041 | ||
| GlaxoSmithKline plc | 1,360,745 | 0.7 | 28,054,333 | ||
| HSBC Holdings plc | 5,407,501 | 1.1 | 43,138,916 | ||
| Lloyds Banking Group plc | 15,596,790 | 0.5 | 18,561,810 | ||
| Prudential plc | 729,350 | 0.4 | 15,906,279 | ||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Reckitt Benckiser Group plc | 179,885 | 0.4 | 15,927,498 | ||
| Royal Dutch Shell plc, A Shares | 1,064,975 | 0.7 | 27,762,942 | ||
| Royal Dutch Shell plc, B Shares | 698,198 | 0.5 | 18,324,885 | ||
| Vodafone Group plc | 7,329,294 | 0.6 | 25,554,656 | ||
| Other Securities | 9.6 | 400,333,490 | |||
| 17.9 | 723,592,725 | ||||
| Total Common Stock | |||||
| (Cost $4,119,071,698) | 4,008,525,131 | ||||
| Preferred Stock 0.4% of net assets | |||||
| Germany 0.4% | |||||
| Other Securities | 0.4 | 16,044,197 | |||
| Total Preferred Stock | |||||
| (Cost $17,399,990) | 16,044,197 | ||||
| Rights 0.0% of net assets | |||||
| Australia 0.0% | |||||
| Other Securities | 0.0 | 49,248 | |||
| Total Rights | |||||
| (Cost $—) | 49,248 | ||||
| Other Investment Companies 0.2% of net assets | |||||
| United States 0.2% | |||||
| Money Market Fund 0.0% | |||||
| Other Securities | 0.0 | 1,354,841 | |||
| Securities Lending Collateral 0.2% | |||||
| Other Securities | 0.2 | 5,643,088 | |||
| Total Other Investment Companies | |||||
| (Cost $6,997,929) | 6,997,929 | ||||
End of Investments.
At 08/31/15, the tax basis cost of the fund's investments was $4,152,351,001 and the unrealized appreciation and depreciation were $286,249,865 and ($406,984,361), respectively, with a net unrealized depreciation of ($120,734,496).
See financial notes 15
Schwab International Equity ETF
Condensed Portfolio Holdings continued
For the following notes, please refer to the complete schedule of portfolio holdings.
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $6,407,040. Non-cash collateral pledged to the fund for securities on loan amounted to $1,335,511. |
| (b) | Fair-valued by management in accordance with procedures approved by the Board of Trustees. |
| (c) | Illiquid security. At the period end, the value of these amounted to $0 or 0.0% of net assets. |
| (d) | The rate shown is the 7-day yield. |
| (e) | 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 $2,908,252 or 0.1% of net assets. |
| ADR — | American Depositary Receipt |
| CDI — | CHESS Depositary Interest |
| CVA — | Dutch Certificate |
| GDR — | Global Depositary Receipt |
| Reg'd — | Registered |
| REIT — | Real Estate Investment Trust |
| RSP — | Risparmio (Convertible Savings Shares) |
In addition to the above, the fund held the following at 08/31/15:
| Number of Contracts | Contract Value ($) | Unrealized Depreciation ($) | ||||
| Futures Contracts | ||||||
| MSCI EAFE, e-mini, Long, expires 09/18/15 | 25 | 2,165,875 | (131,890) | |||
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2015 (see financial note 2(a) for additional information):
Assets Valuation Input
| Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
| Common Stock1 | $3,872,176,414 | $— | $— | $3,872,176,414 | |||||
| Republic of Korea1 | 121,280,949 | — | — | 121,280,949 | |||||
| Capital Goods | 12,565,993 | — | 2,501,775 | 15,067,768 | |||||
| Preferred Stock1 | 16,044,197 | — | — | 16,044,197 | |||||
| Rights 1 | 49,248 | — | — | 49,248 | |||||
| Other Investment Companies1 | 6,997,929 | — | — | 6,997,929 | |||||
| Total | $4,029,114,730 | $— | $2,501,775 | $4,031,616,505 | |||||
| Liabilities Valuation Input | |||||||||
| Other Financial Instruments | |||||||||
| Futures Contracts2 | ($131,890) | $— | $— | ($131,890) |
| 1 | As categorized in the complete schedule of portfolio holdings. |
| 2 | Futures contracts are not included in Investments in the schedule of condensed portfolio holdings and are valued at unrealized appreciation or depreciation. |
16 See financial notes
Schwab International Equity ETF
Condensed Portfolio Holdings continued
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
| Investments in Securities | Balance as of August 31, 2014 | Realized Gains (Losses) | Change in Unrealized Appreciation (Depreciation) | Gross Purchases | Gross Sales | Gross Transfers in | Gross Transfers out | Balance as of August 31, 2015 | ||||||||
| Common Stock | ||||||||||||||||
| Australia | $— | ($55,236) | $55,236 | $— | $— | $— | $— | $— | ||||||||
| Hong Kong | 331,291 | 10,065 | 36,065 | 19,286 | (396,707) | — | — | — | ||||||||
| Republic of Korea | — | — | (514,567) | 1,742,341 | — | 1,274,001 | — | 2,501,775 | ||||||||
| Rights | ||||||||||||||||
| Singapore | 85,210 | — | (85,210) | — | — | — | — | — | ||||||||
| Total | $416,501 | ($45,171) | ($508,476) | $1,761,627 | ($396,707) | $1,274,001 | $— | $2,501,775 |
All net realized and change in unrealized gains (losses) in the tables above are reflected on the accompanying Statement of Operations. The net change in unrealized appreciation (depreciation) for Level 3 investments held by the fund at August 31, 2015 was ($991,649).
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 out of Level 1 to Level 3. Transfers from Level 1 to Level 3 were the result of the availability of current and reliable market-based data provided by third-party pricing services or other valuation techniques, which utilize significant observable inputs. There were no transfers between any other Levels for the period ended August 31, 2015.
See financial notes 17
Schwab International Equity ETF
Statement of
Assets and Liabilities
As of August 31, 2015
| Assets | ||
| Investments, at value (cost $4,137,826,529) including securities on loan of $6,407,040 | $4,025,973,417 | |
| Collateral invested for securities on loan, at value (cost $5,643,088) | + | 5,643,088 |
| Total investments, at value (cost $4,143,469,617) | 4,031,616,505 | |
| Deposit with broker for futures contracts | 511,500 | |
| Foreign currency, at value (cost $2,374,336) | 2,332,657 | |
| Receivables: | ||
| Fund shares sold | 28,549,030 | |
| Dividends | 9,876,967 | |
| Foreign tax reclaims | 3,039,534 | |
| Income from securities on loan | + | 15,539 |
| Total assets | 4,075,941,732 | |
| Liabilities | ||
| Collateral held for securities on loan | 5,643,088 | |
| Payables: | ||
| Investments bought | 27,620,482 | |
| Investment adviser fees | 61,077 | |
| Variation margin on futures contracts | + | 14,500 |
| Total liabilities | 33,339,147 | |
| Net Assets | ||
| Total assets | 4,075,941,732 | |
| Total liabilities | – | 33,339,147 |
| Net assets | $4,042,602,585 | |
| Net Assets by Source | ||
| Capital received from investors | 4,162,105,362 | |
| Net investment income not yet distributed | 70,763,746 | |
| Net realized capital losses | (78,054,398) | |
| Net unrealized capital depreciation | (112,212,125) | |
| Net Asset Value (NAV) | ||||
| Net Assets | ÷ | Shares Outstanding | = | NAV |
| $4,042,602,585 | 141,600,000 | $28.55 | ||
18 See financial notes
Schwab International Equity ETF
Statement of
Operations
For the period September 1, 2014 through August 31, 2015
| Investment Income | ||
| Dividends (net of foreign withholding tax of $8,485,298) | $97,208,592 | |
| Securities on loan | + | 458,125 |
| Total investment income | 97,666,717 | |
| Expenses | ||
| Investment adviser fees | 2,653,659 | |
| Total expenses | – | 2,653,659 |
| Net investment income | 95,013,058 | |
| Realized and Unrealized Gains (Losses) | ||
| Net realized losses on investments | (28,403,124) | |
| Net realized gains on in-kind redemptions | 6,764,737 | |
| Net realized losses on futures contracts | (827,237) | |
| Net realized losses on foreign currency transactions | + | (1,447,984) |
| Net realized losses | (23,913,608) | |
| Net change in unrealized appreciation (depreciation) on investments | (419,365,163) | |
| Net change in unrealized appreciation (depreciation) on futures contracts | (177,554) | |
| Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (180,180) |
| Net change in unrealized appreciation (depreciation) | + | (419,722,897) |
| Net realized and unrealized losses | (443,636,505) | |
| Decrease in net assets resulting from operations | ($348,623,447) | |
See financial notes 19
Schwab International Equity ETF
Statement of
Changes in Net Assets
For the current and prior report periods
| Operations | |||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||
| Net investment income | $95,013,058 | $71,574,846 | |
| Net realized losses | (23,913,608) | (9,108,631) | |
| Net change in unrealized appreciation (depreciation) | + | (419,722,897) | 217,599,236 |
| Increase (decrease) in net assets resulting from operations | (348,623,447) | 280,065,451 | |
| Distributions to Shareholders | |||
| Distributions from net investment income | ($79,192,160) | ($41,541,200) | |
| Transactions in Fund Shares | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | VALUE | SHARES | VALUE | ||
| Shares sold | 60,400,000 | $1,838,831,135 | 30,300,000 | $951,386,985 | |
| Shares redeemed | + | (800,000) | (22,428,935) | — | — |
| Net transactions in fund shares | 59,600,000 | $1,816,402,200 | 30,300,000 | $951,386,985 | |
| Shares Outstanding and Net Assets | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | NET ASSETS | SHARES | NET ASSETS | ||
| Beginning of period | 82,000,000 | $2,654,015,992 | 51,700,000 | $1,464,104,756 | |
| Total increase | + | 59,600,000 | 1,388,586,593 | 30,300,000 | 1,189,911,236 |
| End of period | 141,600,000 | $4,042,602,585 | 82,000,000 | $2,654,015,992 | |
| Net investment income not yet distributed | $70,763,746 | $55,410,148 | |||
20 See financial notes
Schwab International Small-Cap Equity ETF
Financial Statements
Financial Highlights
| 9/1/14– 8/31/15 | 9/1/13– 8/31/14 | 9/1/12– 8/31/13 | 9/1/11– 8/31/12 | 9/1/10– 8/31/11 | ||
| Per-Share Data ($) | ||||||
| Net asset value at beginning of period | 33.32 | 28.61 | 24.94 | 27.48 | 23.54 | |
| Income (loss) from investment operations: | ||||||
| Net investment income (loss) | 0.73 1 | 0.71 | 0.76 | 0.67 | 0.72 | |
| Net realized and unrealized gains (losses) | (3.84) | 4.90 | 3.72 | (2.39) | 3.88 | |
| Total from investment operations | (3.11) | 5.61 | 4.48 | (1.72) | 4.60 | |
| Less distributions: | ||||||
| Distributions from net investment income | (0.75) | (0.90) | (0.81) | (0.82) | (0.66) | |
| Net asset value at end of period | 29.46 | 33.32 | 28.61 | 24.94 | 27.48 | |
| Total return (%) | (9.29) | 19.84 | 18.23 | (5.91) | 19.52 | |
| Ratios/Supplemental Data (%) | ||||||
| Ratios to average net assets: | ||||||
| Total expenses | 0.18 2 | 0.19 | 0.21 3 | 0.35 | 0.35 | |
| Net investment income (loss) | 2.40 | 2.21 | 2.86 | 2.65 | 2.46 | |
| Portfolio turnover rate4 | 23 | 16 | 20 | 25 | 18 | |
| Net assets, end of period ($ x 1,000) | 609,773 | 403,229 | 280,422 | 159,610 | 162,139 | |
1
Calculated based on the average shares outstanding during the period.
2
Effective March 4, 2015, the annual operating expense ratio was reduced. The ratio presented for the period ended 8/31/15 is a blended ratio.
3
Effective September 20, 2012, the annual operating expense ratio was reduced. The ratio presented for the period ended 8/31/13 is a blended ratio.
4
Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
See financial notes 21
Schwab International Small-Cap Equity ETF
Condensed Portfolio Holdings as of August 31, 2015
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™ 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 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.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.0% | Common Stock | 593,339,624 | 603,888,842 |
| 0.3% | Preferred Stock | 1,798,214 | 2,006,072 |
| 0.0% | Rights | 17,940 | 35,681 |
| 1.9% | Other Investment Companies | 10,747,636 | 11,370,259 |
| 101.2% | Total Investments | 605,903,414 | 617,300,854 |
| (1.2%) | Other Assets and Liabilities, Net | (7,527,831) | |
| 100.0% | Net Assets | 609,773,023 | |
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Common Stock 99.0% of net assets | |||||
| Australia 4.3% | |||||
| Other Securities | 4.3 | 26,360,329 | |||
| Austria 0.8% | |||||
| Other Securities | 0.8 | 4,865,683 | |||
| Belgium 1.6% | |||||
| Ackermans & van Haaren N.V. | 10,178 | 0.2 | 1,507,668 | ||
| Other Securities | 1.4 | 8,056,833 | |||
| 1.6 | 9,564,501 | ||||
| Canada 14.0% | |||||
| AltaGas Ltd. | 50,618 | 0.2 | 1,376,064 | ||
| CCL Industries, Inc., Class B | 12,068 | 0.3 | 1,560,087 | ||
| Constellation Software, Inc. | 5,804 | 0.4 | 2,452,512 | ||
| Dollarama, Inc. | 42,343 | 0.4 | 2,390,685 | ||
| Element Financial Corp. * | 92,801 | 0.2 | 1,312,675 | ||
| Empire Co., Ltd., A Shares | 19,317 | 0.2 | 1,279,960 | ||
| Gildan Activewear, Inc. | 88,696 | 0.5 | 2,753,209 | ||
| H&R Real Estate Investment Trust | 95,961 | 0.2 | 1,489,361 | ||
| Keyera Corp. | 62,117 | 0.3 | 1,885,219 | ||
| Methanex Corp. | 34,107 | 0.2 | 1,380,173 | ||
| Onex Corp. | 33,754 | 0.3 | 2,032,090 | ||
| Open Text Corp. | 45,401 | 0.3 | 2,036,135 | ||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Progressive Waste Solutions Ltd. | 46,683 | 0.2 | 1,274,353 | ||
| Other Securities | 10.3 | 62,410,369 | |||
| 14.0 | 85,632,892 | ||||
| Denmark 1.6% | |||||
| Genmab A/S * | 17,231 | 0.3 | 1,545,631 | ||
| Other Securities | 1.3 | 8,119,340 | |||
| 1.6 | 9,664,971 | ||||
| Finland 1.8% | |||||
| Amer Sports Oyj | 46,422 | 0.2 | 1,270,747 | ||
| Elisa Oyj | 57,614 | 0.3 | 1,917,327 | ||
| Huhtamaki Oyj | 39,842 | 0.2 | 1,295,092 | ||
| Other Securities | 1.1 | 6,757,878 | |||
| 1.8 | 11,241,044 | ||||
| France 3.6% | |||||
| Orpea | 16,248 | 0.2 | 1,251,654 | ||
| Teleperformance | 22,776 | 0.3 | 1,601,667 | ||
| Other Securities | 3.1 | 18,903,908 | |||
| 3.6 | 21,757,229 | ||||
| Germany 5.5% | |||||
| Deutsche Annington Immobilien SE | 160,066 | 0.9 | 5,234,444 | ||
| Dialog Semiconductor plc * | 27,345 | 0.2 | 1,310,322 | ||
| Freenet AG | 41,274 | 0.2 | 1,312,042 | ||
| LEG Immobilien AG * | 21,094 | 0.3 | 1,580,764 | ||
| Other Securities | 3.9 | 23,981,116 | |||
| 5.5 | 33,418,688 | ||||
| Greece 0.3% | |||||
| Other Securities | 0.3 | 2,011,619 | |||
| Hong Kong 2.2% | |||||
| Other Securities | 2.2 | 13,181,096 | |||
| Ireland 0.9% | |||||
| Kingspan Group plc | 65,929 | 0.3 | 1,617,828 | ||
| Paddy Power plc | 12,753 | 0.2 | 1,400,394 | ||
| Other Securities | 0.4 | 2,144,835 | |||
| 0.9 | 5,163,057 | ||||
| Israel 0.4% | |||||
| Other Securities | 0.4 | 2,652,920 | |||
| Italy 4.0% | |||||
| Banca Popolare dell'Emilia Romagna SC | 171,832 | 0.2 | 1,470,988 | ||
| Banca Popolare di Milano Scarl | 1,634,064 | 0.3 | 1,733,011 | ||
| Other Securities | 3.5 | 21,240,749 | |||
| 4.0 | 24,444,748 | ||||
| Japan 18.6% | |||||
| Other Securities | 18.6 | 113,156,748 | |||
| Netherlands 1.9% | |||||
| Other Securities | 1.9 | 11,817,270 | |||
22 See financial notes
Schwab International Small-Cap Equity ETF
Condensed Portfolio Holdings continued
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| New Zealand 0.6% | |||||
| Other Securities | 0.6 | 3,485,468 | |||
| Norway 1.1% | |||||
| Other Securities | 1.1 | 6,510,009 | |||
| Portugal 0.4% | |||||
| Other Securities | 0.4 | 2,647,250 | |||
| Republic of Korea 5.5% | |||||
| Hanssem Co., Ltd. | 5,700 | 0.3 | 1,534,940 | ||
| Other Securities | 5.2 | 31,703,362 | |||
| 5.5 | 33,238,302 | ||||
| Singapore 1.7% | |||||
| Other Securities | 1.7 | 10,334,879 | |||
| Spain 2.1% | |||||
| Merlin Properties Socimi S.A. * | 113,302 | 0.2 | 1,311,444 | ||
| Other Securities | 1.9 | 11,595,886 | |||
| 2.1 | 12,907,330 | ||||
| Sweden 3.4% | |||||
| Other Securities | 3.4 | 20,977,773 | |||
| Switzerland 3.3% | |||||
| Other Securities | 3.3 | 20,396,030 | |||
| United Kingdom 19.4% | |||||
| Amlin plc | 196,327 | 0.3 | 1,558,067 | ||
| Bellway plc | 45,873 | 0.3 | 1,756,056 | ||
| Betfair Group plc | 27,410 | 0.2 | 1,365,873 | ||
| Booker Group plc | 541,408 | 0.2 | 1,406,406 | ||
| BTG plc * | 138,762 | 0.2 | 1,346,655 | ||
| Close Brothers Group plc | 59,074 | 0.2 | 1,354,660 | ||
| Essentra plc | 98,196 | 0.2 | 1,287,492 | ||
| Great Portland Estates plc | 133,968 | 0.3 | 1,707,065 | ||
| Greene King plc | 109,929 | 0.2 | 1,388,071 | ||
| Halma plc | 139,390 | 0.3 | 1,618,583 | ||
| Henderson Group plc | 366,243 | 0.2 | 1,461,153 | ||
| Hiscox Ltd. | 108,544 | 0.2 | 1,502,466 | ||
| Howden Joinery Group plc | 229,621 | 0.3 | 1,700,805 | ||
| IG Group Holdings plc | 140,349 | 0.3 | 1,564,962 | ||
| Man Group plc | 572,359 | 0.2 | 1,418,144 | ||
| Rightmove plc | 35,106 | 0.3 | 2,009,081 | ||
| Shaftesbury plc | 100,836 | 0.2 | 1,395,772 | ||
| Spirax-Sarco Engineering plc | 28,140 | 0.2 | 1,365,030 | ||
| Other Securities | 15.1 | 91,252,665 | |||
| 19.4 | 118,459,006 | ||||
| Total Common Stock | |||||
| (Cost $593,339,624) | 603,888,842 | ||||
| Preferred Stock 0.3% of net assets | |||||
| Germany 0.3% | |||||
| Other Securities | 0.3 | 1,703,495 | |||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Republic of Korea 0.0% | |||||
| Other Securities | 0.0 | 42,853 | |||
| Sweden 0.0% | |||||
| Other Securities | 0.0 | 259,724 | |||
| Total Preferred Stock | |||||
| (Cost $1,798,214) | 2,006,072 | ||||
| Rights 0.0% of net assets | |||||
| Germany 0.0% | |||||
| Other Securities | 0.0 | 35,681 | |||
| Total Rights | |||||
| (Cost $17,940) | 35,681 | ||||
| Other Investment Companies 1.9% of net assets | |||||
| Switzerland 0.2% | |||||
| BB Biotech AG - Reg'd * | 4,373 | 0.2 | 1,279,726 | ||
| United Kingdom 0.1% | |||||
| Other Securities | 0.1 | 645,856 | |||
| United States 1.6% | |||||
| Equity Fund 0.1% | |||||
| Other Securities | 0.1 | 588,720 | |||
| Money Market Fund 0.1% | |||||
| Other Securities | 0.1 | 206,690 | |||
| Securities Lending Collateral 1.4% | |||||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d) | 1.4 | 8,649,267 | |||
| 1.6 | 9,444,677 | ||||
| Total Other Investment Companies | |||||
| (Cost $10,747,636) | 11,370,259 | ||||
End of Investments.
At 08/31/15, the tax basis cost of the fund's investments was $612,114,955 and the unrealized appreciation and depreciation were $70,752,434 and ($65,566,535), respectively, with a net unrealized appreciation of $5,185,899.
See financial notes 23
Schwab International Small-Cap Equity ETF
Condensed Portfolio Holdings continued
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 $136,812 or 0.0% of net assets. |
| (c) | All or a portion of this security is on loan. Securities on loan were valued at $7,876,658. Non-cash collateral pledged to the fund for securities on loan amounted to $641,711. |
| (d) | The rate shown is the 7-day yield. |
| (e) | 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 $4,418,389 or 0.7% of net assets. |
| CVA — | Dutch Certificate |
| ETF — | Exchange Traded Fund |
| Reg'd — | Registered |
| REIC — | Real Estate Investment Company |
| REIT — | Real Estate Investment Trust |
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2015 (see financial note 2(a) for additional information):
| Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
| Common Stock1 | $590,707,746 | $— | $— | $590,707,746 | |||||
| Hong Kong | 12,949,755 | — | 231,341 | 13,181,096 | |||||
| Preferred Stock1 | 2,006,072 | — | — | 2,006,072 | |||||
| Rights 1 | |||||||||
| Germany 1 | — | — | 35,681 | 35,681 | |||||
| Other Investment Companies1 | 11,370,259 | — | — | 11,370,259 | |||||
| Total | $617,033,832 | $— | $267,022 | $617,300,854 |
| 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:
| Investments in Securities | Balance as of August 31, 2014 | Realized Gains (Losses) | Change in Unrealized Appreciation (Depreciation) | Gross Purchases | Gross Sales | Gross Transfers in | Gross Transfers out | Balance as of August 31, 2015 | ||||||||
| Common Stock | ||||||||||||||||
| Australia | $93,288 | ($82,313) | $7,318 | $11,240 | ($29,533) | $— | $— | $— | ||||||||
| Hong Kong | 107,869 | — | (470,126) | 668,132 | (304,207) | 229,673 | — | 231,341 | ||||||||
| Spain | 27,964 | — | (27,964) | — | — | — | — | — | ||||||||
| Rights | ||||||||||||||||
| Germany | — | — | 17,741 | 17,940 | — | — | — | 35,681 | ||||||||
| Total | $229,121 | ($82,313) | ($473,031) | $697,312 | ($333,740) | $229,673 | $— | $267,022 |
All net realized and change in unrealized gains (losses) in the table above are reflected on the accompanying Statement of Operations. The net change in unrealized appreciation (depreciation) for Level 3 Investments held by the fund at August 31, 2015 was ($521,479).
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 security transfers out of Level 1 to Level 3 due to the result of fair valued securities for which no quoted value was available. There were no transfers between Level 1 and Level 2 for the period ended August 31, 2015.
24 See financial notes
Schwab International Small-Cap Equity ETF
Statement of
Assets and Liabilities
As of August 31, 2015
| Assets | ||
| Investments, at value (cost $597,254,147) including securities on loan of $7,876,658 | $608,651,587 | |
| Collateral invested for securities on loan, at value (cost $8,649,267) | + | 8,649,267 |
| Total investments, at value (cost $605,903,414) | 617,300,854 | |
| Foreign currency, at value (cost $335,675) | 333,057 | |
| Receivables: | ||
| Dividends | 782,258 | |
| Foreign tax reclaims | 174,050 | |
| Income from securities on loan | + | 49,772 |
| Total assets | 618,639,991 | |
| Liabilities | ||
| Collateral held for securities on loan | 8,649,267 | |
| Payables: | ||
| Investments bought | 197,027 | |
| Investment adviser fees | + | 20,674 |
| Total liabilities | 8,866,968 | |
| Net Assets | ||
| Total assets | 618,639,991 | |
| Total liabilities | – | 8,866,968 |
| Net assets | $609,773,023 | |
| Net Assets by Source | ||
| Capital received from investors | 632,684,789 | |
| Net investment income not yet distributed | 4,819,562 | |
| Net realized capital losses | (39,114,850) | |
| Net unrealized capital appreciation | 11,383,522 | |
| Net Asset Value (NAV) | ||||
| Net Assets | ÷ | Shares Outstanding | = | NAV |
| $609,773,023 | 20,700,000 | $29.46 | ||
See financial notes 25
Schwab International Small-Cap Equity ETF
Statement of
Operations
For the period September 1, 2014 through August 31, 2015
| Investment Income | ||
| Dividends (net of foreign withholding tax of $1,085,327) | $11,963,578 | |
| Securities on loan | + | 235,707 |
| Total investment income | 12,199,285 | |
| Expenses | ||
| Investment adviser fees | 869,357 | |
| Total expenses | – | 869,357 |
| Net investment income | 11,329,928 | |
| Realized and Unrealized Gains (Losses) | ||
| Net realized losses on investments | (15,151,269) | |
| Net realized gains on in-kind redemptions | 5,271,166 | |
| Net realized gains on futures contracts | 39,689 | |
| Net realized losses on foreign currency transactions | + | (317,967) |
| Net realized losses | (10,158,381) | |
| Net change in unrealized appreciation (depreciation) on investments | (49,949,433) | |
| Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (8,856) |
| Net change in unrealized appreciation (depreciation) | + | (49,958,289) |
| Net realized and unrealized losses | (60,116,670) | |
| Decrease in net assets resulting from operations | ($48,786,742) | |
26 See financial notes
Schwab International Small-Cap Equity ETF
Statement of
Changes in Net Assets
For the current and prior report periods
| Operations | |||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||
| Net investment income | $11,329,928 | $7,886,966 | |
| Net realized gains (losses) | (10,158,381) | 8,930,216 | |
| Net change in unrealized appreciation (depreciation) | + | (49,958,289) | 41,051,758 |
| Increase (decrease) in net assets resulting from operations | (48,786,742) | 57,868,940 | |
| Distributions to Shareholders | |||
| Distributions from net investment income | ($9,800,110) | ($9,580,780) | |
| Transactions in Fund Shares | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | VALUE | SHARES | VALUE | ||
| Shares sold | 9,200,000 | $284,437,217 | 3,400,000 | $110,086,847 | |
| Shares redeemed | + | (600,000) | (19,306,798) | (1,100,000) | (35,567,269) |
| Net transactions in fund shares | 8,600,000 | $265,130,419 | 2,300,000 | $74,519,578 | |
| Shares Outstanding and Net Assets | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | NET ASSETS | SHARES | NET ASSETS | ||
| Beginning of period | 12,100,000 | $403,229,456 | 9,800,000 | $280,421,718 | |
| Total increase | + | 8,600,000 | 206,543,567 | 2,300,000 | 122,807,738 |
| End of period | 20,700,000 | $609,773,023 | 12,100,000 | $403,229,456 | |
| Net investment income not yet distributed | $4,819,562 | $1,843,057 | |||
See financial notes 27
Schwab Emerging Markets Equity ETF
Financial Statements
Financial Highlights
| 9/1/14– 8/31/15 | 9/1/13– 8/31/14 | 9/1/12– 8/31/13 | 9/1/11– 8/31/12 | 9/1/10– 8/31/11 | ||
| Per-Share Data ($) | ||||||
| Net asset value at beginning of period | 27.34 | 22.94 | 23.65 | 26.10 | 24.30 | |
| Income (loss) from investment operations: | ||||||
| Net investment income (loss) | 0.66 1 | 0.63 | 0.50 | 0.63 | 0.62 | |
| Net realized and unrealized gains (losses) | (6.49) | 4.40 | (0.65) | (2.51) | 1.41 2 | |
| Total from investment operations | (5.83) | 5.03 | (0.15) | (1.88) | 2.03 | |
| Less distributions: | ||||||
| Distributions from net investment income | (0.68) | (0.63) | (0.56) | (0.57) | (0.23) | |
| Net asset value at end of period | 20.83 | 27.34 | 22.94 | 23.65 | 26.10 | |
| Total return (%) | (21.62) | 22.31 | (0.89) | (7.04) | 8.31 | |
| Ratios/Supplemental Data (%) | ||||||
| Ratios to average net assets: | ||||||
| Total expenses | 0.14 | 0.14 | 0.15 | 0.25 | 0.25 | |
| Net investment income (loss) | 2.66 | 2.89 | 2.63 | 2.96 | 2.78 | |
| Portfolio turnover rate3 | 8 | 9 | 15 | 9 | 9 | |
| Net assets, end of period ($ x 1,000) | 1,276,740 | 1,273,840 | 811,915 | 515,595 | 396,661 | |
1
Calculated based on the average shares outstanding during the period.
2
The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of sales and repurchases of fund shares in relation to fluctuating market values.
3
Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
28 See financial notes
Schwab Emerging Markets Equity ETF
Condensed Portfolio Holdings as of August 31, 2015
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™ 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 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.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 97.5% | Common Stock | 1,419,144,154 | 1,244,294,754 |
| 2.0% | Preferred Stock | 48,701,294 | 25,853,511 |
| 1.4% | Other Investment Companies | 18,318,299 | 18,318,299 |
| 100.9% | Total Investments | 1,486,163,747 | 1,288,466,564 |
| (0.9%) | Other Assets and Liabilities, Net | (11,726,607) | |
| 100.0% | Net Assets | 1,276,739,957 | |
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Common Stock 97.5% of net assets | |||||
| Brazil 6.3% | |||||
| Ambev S.A. ADR | 2,023,164 | 0.8 | 10,662,074 | ||
| BRF S.A. ADR | 384,091 | 0.6 | 7,316,934 | ||
| Itau Unibanco Holding S.A. ADR | 1,297,899 | 0.7 | 9,500,621 | ||
| Other Securities | 4.2 | 52,960,261 | |||
| 6.3 | 80,439,890 | ||||
| Chile 1.4% | |||||
| Other Securities | 1.4 | 18,074,660 | |||
| China 26.5% | |||||
| Bank of China Ltd., H Shares | 32,104,743 | 1.1 | 14,664,524 | ||
| China Construction Bank Corp., H Shares | 38,841,165 | 2.1 | 27,313,933 | ||
| China Life Insurance Co., Ltd., H Shares | 3,229,117 | 0.9 | 11,166,423 | ||
| China Merchants Bank Co., Ltd., H Shares | 1,936,084 | 0.4 | 4,611,597 | ||
| China Mobile Ltd. | 2,266,387 | 2.2 | 27,459,660 | ||
| China Overseas Land & Investment Ltd. | 1,614,710 | 0.4 | 4,729,507 | ||
| China Petroleum & Chemical Corp., H Shares | 11,120,471 | 0.6 | 7,404,034 | ||
| CNOOC Ltd. | 7,023,157 | 0.7 | 8,708,658 | ||
| Industrial & Commercial Bank of China Ltd., H Shares | 30,566,991 | 1.4 | 18,063,989 | ||
| PetroChina Co., Ltd., H Shares | 8,927,884 | 0.6 | 7,418,736 | ||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Ping An Insurance Group Co. of China Ltd., H Shares | 2,093,678 | 0.8 | 10,252,202 | ||
| Tencent Holdings Ltd. | 2,270,349 | 3.0 | 38,610,331 | ||
| Other Securities | 12.3 | 158,394,246 | |||
| 26.5 | 338,797,840 | ||||
| Colombia 0.5% | |||||
| Other Securities | 0.5 | 6,711,696 | |||
| Czech Republic 0.3% | |||||
| Other Securities | 0.3 | 3,366,827 | |||
| Egypt 0.3% | |||||
| Other Securities | 0.3 | 3,301,536 | |||
| Hungary 0.3% | |||||
| Other Securities | 0.3 | 3,943,611 | |||
| India 12.6% | |||||
| HDFC Bank Ltd. | 383,246 | 0.5 | 5,923,522 | ||
| Housing Development Finance Corp., Ltd. | 655,318 | 0.9 | 11,693,200 | ||
| ICICI Bank Ltd. | 1,180,060 | 0.4 | 4,933,263 | ||
| Infosys Ltd. | 827,760 | 1.1 | 13,627,688 | ||
| Reliance Industries Ltd. | 693,136 | 0.7 | 8,924,484 | ||
| Sun Pharmaceutical Industries Ltd. | 471,544 | 0.5 | 6,376,751 | ||
| Tata Consultancy Services Ltd. | 201,320 | 0.6 | 7,765,243 | ||
| Other Securities | 7.9 | 101,120,890 | |||
| 12.6 | 160,365,041 | ||||
| Indonesia 2.5% | |||||
| PT Bank Central Asia Tbk | 5,159,717 | 0.4 | 4,737,391 | ||
| PT Telekomunikasi Indonesia (Persero) Tbk | 23,311,509 | 0.4 | 4,761,853 | ||
| Other Securities | 1.7 | 21,873,078 | |||
| 2.5 | 31,372,322 | ||||
| Malaysia 4.1% | |||||
| Public Bank Berhad | 1,257,654 | 0.4 | 5,389,945 | ||
| Other Securities | 3.7 | 46,522,014 | |||
| 4.1 | 51,911,959 | ||||
| Mexico 5.5% | |||||
| America Movil S.A.B. de C.V., Series L | 12,985,183 | 0.9 | 11,816,671 | ||
| Fomento Economico Mexicano S.A.B. de C.V. | 950,550 | 0.7 | 8,460,348 | ||
| Grupo Financiero Banorte S.A.B. de C.V., O Shares | 955,326 | 0.4 | 4,577,936 | ||
| Grupo Televisa S.A.B., Series CPO | 1,160,145 | 0.6 | 7,083,245 | ||
| Wal-Mart de Mexico S.A.B. de C.V., Series V | 2,427,055 | 0.5 | 5,804,393 | ||
| Other Securities | 2.4 | 32,972,991 | |||
| 5.5 | 70,715,584 | ||||
| Pakistan 0.0% | |||||
| Other Securities | 0.0 | 137,863 | |||
See financial notes 29
Schwab Emerging Markets Equity ETF
Condensed Portfolio Holdings continued
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Peru 0.2% | |||||
| Other Securities | 0.2 | 3,241,590 | |||
| Philippines 1.9% | |||||
| Other Securities | 1.9 | 24,584,712 | |||
| Poland 1.9% | |||||
| Other Securities | 1.9 | 23,865,052 | |||
| Russia 4.0% | |||||
| Gazprom PAO ADR | 2,490,310 | 0.9 | 10,982,267 | ||
| LUKOIL PJSC ADR | 217,753 | 0.6 | 8,213,643 | ||
| Magnit PJSC GDR - Reg'd | 125,381 | 0.5 | 6,268,423 | ||
| Other Securities | 2.0 | 25,159,074 | |||
| 4.0 | 50,623,407 | ||||
| South Africa 9.7% | |||||
| FirstRand Ltd. | 1,319,879 | 0.4 | 5,264,889 | ||
| MTN Group Ltd. | 744,757 | 0.8 | 9,936,457 | ||
| Naspers Ltd., N Shares | 157,144 | 1.6 | 20,365,308 | ||
| Sasol Ltd. | 235,049 | 0.6 | 7,529,613 | ||
| Standard Bank Group Ltd. | 510,210 | 0.4 | 5,620,513 | ||
| Steinhoff International Holdings Ltd. | 974,146 | 0.5 | 5,835,659 | ||
| Other Securities | 5.4 | 68,774,440 | |||
| 9.7 | 123,326,879 | ||||
| Taiwan 14.0% | |||||
| Cathay Financial Holding Co., Ltd. | 3,178,189 | 0.4 | 4,581,296 | ||
| Chunghwa Telecom Co., Ltd. ADR (a) | 171,040 | 0.4 | 5,204,747 | ||
| Formosa Plastics Corp. | 2,505,560 | 0.4 | 5,521,535 | ||
| Fubon Financial Holding Co., Ltd. | 3,191,114 | 0.4 | 5,482,643 | ||
| Hon Hai Precision Industry Co., Ltd. | 5,373,304 | 1.2 | 15,276,328 | ||
| MediaTek, Inc. | 617,713 | 0.4 | 4,765,366 | ||
| Nan Ya Plastics Corp. | 2,565,816 | 0.4 | 4,676,447 | ||
| Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 2,001,202 | 3.1 | 39,783,896 | ||
| Other Securities | 7.3 | 93,911,122 | |||
| 14.0 | 179,203,380 | ||||
| Thailand 2.7% | |||||
| Other Securities | 2.7 | 34,812,777 | |||
| Turkey 1.7% | |||||
| Other Securities | 1.7 | 21,430,282 | |||
| United Arab Emirates 1.1% | |||||
| Other Securities | 1.1 | 14,067,846 | |||
| Total Common Stock | |||||
| (Cost $1,419,144,154) | 1,244,294,754 | ||||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Preferred Stock 2.0% of net assets | |||||
| Brazil 1.7% | |||||
| Banco Bradesco S.A. | 1,060,940 | 0.5 | 6,714,165 | ||
| Petroleo Brasileiro S.A. * | 1,903,006 | 0.4 | 4,801,599 | ||
| Other Securities | 0.8 | 10,033,589 | |||
| 1.7 | 21,549,353 | ||||
| Colombia 0.1% | |||||
| Other Securities | 0.1 | 961,232 | |||
| Russia 0.2% | |||||
| Other Securities | 0.2 | 3,342,926 | |||
| Total Preferred Stock | |||||
| (Cost $48,701,294) | 25,853,511 | ||||
| Other Investment Companies 1.4% of net assets | |||||
| United States 1.4% | |||||
| Money Market Fund 0.3% | |||||
| Other Securities | 0.3 | 3,645,321 | |||
| Securities Lending Collateral 1.1% | |||||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (e) | 1.1 | 14,672,978 | |||
| Total Other Investment Companies | |||||
| (Cost $18,318,299) | 18,318,299 | ||||
End of Investments.
At 08/31/15, the tax basis cost of the fund's investments was $1,498,219,850 and the unrealized appreciation and depreciation were $95,198,942 and ($304,952,228), respectively, with a net unrealized depreciation of ($209,753,286).
For the following notes, please refer to the complete schedule of portfolio holdings.
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $14,164,116. Non-cash collateral pledged to the fund for securities on loan amounted to $977,527. |
| (b) | Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $2,726,988 or 0.2% of net assets. |
| (c) | Fair-valued by management in accordance with procedures approved by the Board of Trustees. |
| (d) | Illiquid security. At the period end, the value of these amounted to $4,231,025 or 0.3% of net assets. |
| (e) | The rate shown is the 7-day yield. |
| (f) | Securities are traded on separate exchanges for the same entity. |
30 See financial notes
Schwab Emerging Markets Equity ETF
Condensed Portfolio Holdings continued
| ADR — | American Depositary Receipt |
| GDR — | Global Depositary Receipt |
| NVDR — | Non-Voting Depositary Receipt |
| Reg'd — | Registered |
In addition to the above, the fund held the following at 8/31/15:
| Number of Contracts | Contract Value ($) | Unrealized Depreciation ($) | ||||
| Futures Contracts | ||||||
| MSCI EAFE, e-mini, Long, expires 09/18/15 | 100 | 4,087,500 | (65,459) | |||
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2015 (see financial note 2(a) for additional information):
Assets Valuation Input
| Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
| Common Stock1 | $905,359,051 | $— | $— | $905,359,051 | |||||
| China | 334,783,719 | — | 4,014,121 | 338,797,840 | |||||
| Pakistan | — | — | 137,863 | 137,863 | |||||
| Preferred Stock1 | 25,853,511 | — | — | 25,853,511 | |||||
| Other Investment Companies1 | 18,318,299 | — | — | 18,318,299 | |||||
| Total | $1,284,314,580 | $— | $4,151,984 | $1,288,466,564 | |||||
| Liabilities Valuation Input | |||||||||
| Other Financial Instruments | |||||||||
| Futures Contracts2 | ($65,459) | $— | $— | ($65,459) |
| 1 | As categorized in the complete schedule of portfolio holdings. |
| 2 | Futures contracts are not included in Investments in the schedule of condensed portfolio holdings and are valued at unrealized appreciation or depreciation. |
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
| Investments in Securities | Balance as of August 31, 2014 | Realized Gains (Losses) | Change in Unrealized Appreciation (Depreciation) | Gross Purchases | Gross Sales | Gross Transfers in | Gross Transfers out | Balance as of August 31, 2015 | ||||||||
| Common Stock | ||||||||||||||||
| China | $— | ($55,246) | $304,520 | $1,641,631 | ($225,409) | $2,348,625 | $— | $4,014,121 | ||||||||
| Pakistan | 239,616 | — | (101,753) | — | — | — | — | 137,863 | ||||||||
| Warrants | ||||||||||||||||
| Thailand | — | 7,413 | — | — | (7,413) | — | — | — | ||||||||
| Total | $239,616 | ($47,833) | $202,767 | $1,641,631 | ($232,822) | $2,348,625 | $— | $4,151,984 |
All net realized and change in unrealized gains (losses) in the table above are reflected on the accompanying Statement of Operations. The net change in unrealized appreciation (depreciation) for Level 3 Investments held by the fund at August 31, 2015 was $324,314.
See financial notes 31
Schwab Emerging Markets Equity ETF
Condensed Portfolio Holdings continued
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 security transfers out of Level 1 to Level 3 due to the result of fair valued securities for which no quoted value was available. There were no transfers between Level 1 and Level 2 for the period ended August 31, 2015.
32 See financial notes
Schwab Emerging Markets Equity ETF
Statement of
Assets and Liabilities
As of August 31, 2015
| Assets | ||
| Investments, at value (cost $1,471,490,769) including securities on loan of $14,164,116 | $1,273,793,586 | |
| Collateral invested for securities on loan, at value (cost $14,672,978) | + | 14,672,978 |
| Total investments, at value (cost $1,486,163,747) | 1,288,466,564 | |
| Deposit with broker for futures contracts | 148,000 | |
| Foreign currency, at value (cost $1,233,500) | 1,218,766 | |
| Receivables: | ||
| Fund shares sold | 8,331,184 | |
| Dividends | 2,187,373 | |
| Income from securities on loan | 33,678 | |
| Foreign tax reclaims | 17,198 | |
| Variation margin on futures contracts | + | 4,628 |
| Total assets | 1,300,407,391 | |
| Liabilities | ||
| Collateral held for securities on loan | 14,672,978 | |
| Payables: | ||
| Investments bought | 7,635,391 | |
| Investment adviser fees | 33,363 | |
| Foreign capital gains tax | + | 1,325,702 |
| Total liabilities | 23,667,434 | |
| Net Assets | ||
| Total assets | 1,300,407,391 | |
| Total liabilities | – | 23,667,434 |
| Net assets | $1,276,739,957 | |
| Net Assets by Source | ||
| Capital received from investors | 1,581,371,407 | |
| Net investment income not yet distributed | 23,218,412 | |
| Net realized capital losses | (128,673,223) | |
| Net unrealized capital depreciation | (199,176,639) | |
| Net Asset Value (NAV) | ||||
| Net Assets | ÷ | Shares Outstanding | = | NAV |
| $1,276,739,957 | 61,300,000 | $20.83 | ||
See financial notes 33
Schwab Emerging Markets Equity ETF
Statement of
Operations
For the period September 1, 2014 through August 31, 2015
| Investment Income | ||
| Dividends (net of foreign withholding tax of $4,440,716) | $35,849,195 | |
| Securities on loan | + | 585,840 |
| Total investment income | 36,435,035 | |
| Expenses | ||
| Investment adviser fees | �� | 1,819,239 |
| Total expenses | – | 1,819,239 |
| Net investment income | 34,615,796 | |
| Realized and Unrealized Gains (Losses) | ||
| Net realized losses on investments | (49,128,438) | |
| Net realized gains on in-kind redemptions | 3,243,692 | |
| Net realized losses on futures contracts | (482,766) | |
| Net realized losses on foreign currency transactions | + | (789,218) |
| Net realized losses | (47,156,730) | |
| Net change in unrealized appreciation (depreciation) on investments (net of foreign capital gains tax of ($572,542)) | (323,824,876) | |
| Net change in unrealized appreciation (depreciation) on futures contracts | (63,830) | |
| Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (88,986) |
| Net change in unrealized appreciation (depreciation) | + | (323,977,692) |
| Net realized and unrealized losses | (371,134,422) | |
| Decrease in net assets resulting from operations | ($336,518,626) | |
34 See financial notes
Schwab Emerging Markets Equity ETF
Statement of
Changes in Net Assets
For the current and prior report periods
| Operations | |||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||
| Net investment income | $34,615,796 | $28,297,970 | |
| Net realized losses | (47,156,730) | (22,626,739) | |
| Net change in unrealized appreciation (depreciation) | + | (323,977,692) | 194,891,120 |
| Increase (decrease) in net assets resulting from operations | (336,518,626) | 200,562,351 | |
| Distributions to Shareholders | |||
| Distributions from net investment income | ($32,001,840) | ($23,217,480) | |
| Transactions in Fund Shares | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | VALUE | SHARES | VALUE | ||
| Shares sold | 15,600,000 | $393,111,059 | 11,200,000 | $284,579,691 | |
| Shares redeemed | + | (900,000) | (21,690,338) | — | — |
| Net transactions in fund shares | 14,700,000 | $371,420,721 | 11,200,000 | $284,579,691 | |
| Shares Outstanding and Net Assets | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | NET ASSETS | SHARES | NET ASSETS | ||
| Beginning of period | 46,600,000 | $1,273,839,702 | 35,400,000 | $811,915,140 | |
| Total increase | + | 14,700,000 | 2,900,255 | 11,200,000 | 461,924,562 |
| End of period | 61,300,000 | $1,276,739,957 | 46,600,000 | $1,273,839,702 | |
| Net investment income not yet distributed | $23,218,412 | $21,366,306 | |||
See financial notes 35
Schwab International Equity ETFs
Financial Notes
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. REIT ETF |
| Schwab International Equity ETF | Schwab U.S. TIPS ETF |
| Schwab International Small-Cap Equity ETF | Schwab Short-Term U.S. Treasury ETF |
| Schwab Emerging Markets Equity ETF | Schwab Intermediate-Term U.S. Treasury ETF |
| Schwab U.S. Broad Market ETF | Schwab U.S. Aggregate Bond ETF |
| Schwab U.S. Large-Cap ETF | Schwab Fundamental U.S. Broad Market Index ETF |
| Schwab U.S. Large-Cap Growth ETF | Schwab Fundamental U.S. Large Company Index ETF |
| Schwab U.S. Large-Cap Value ETF | Schwab Fundamental U.S. Small Company Index ETF |
| Schwab U.S. Mid-Cap ETF | Schwab Fundamental International Large Company Index ETF |
| Schwab U.S. Small-Cap ETF | Schwab Fundamental International Small Company Index ETF |
| Schwab U.S. Dividend Equity ETF | Schwab Fundamental Emerging Markets Large Company Index ETF |
The funds issue and redeem shares at their net assets value per share (NAV) only in large blocks of shares, typically 100,000 shares or more (Creation Units). These transactions are usually in exchange for a basket of securities and/or an amount of cash. As a practical matter, only institutions or large investors purchase or redeem Creation Units. Except when aggregated in Creation Units, shares of the fund are not redeemable securities.
Individual shares of the funds trade on national securities exchanges and elsewhere during the trading day and can only be bought and sold at market prices throughout the trading day through a broker-dealer. Because fund shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board 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).
The funds invest in certain other investment companies (underlying funds). For specific investments in underlying funds, please refer to the complete schedule of portfolio holdings on Form N-CSR, which is filed with the U.S. Securities and Exchange Commission (SEC). For more information about United States underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the SEC.
(a) Security Valuation:
Under procedures approved by the funds’ Board of Trustees (the Board), the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair market value. Among other things, these procedures allow the funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:
• Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at halfway between the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.
36
Schwab International Equity ETFs
Financial Notes (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.
• Bonds and notes: Bonds and notes are valued at halfway between the most recent bid and ask quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by independent bond-pricing services.
• Futures contracts: Futures contracts are valued at their settlement prices as of the close of their exchanges.
• Short-term securities (60 days or less to maturity): A short-term security may be valued at its amortized cost when it approximates the security's 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 significant 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, without consideration to the classification level of the specific investments held by an underlying fund.
• 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
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Financial Notes (continued)
2. Significant Accounting Policies (continued):
active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the funds’ results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the funds' investments as of August 31, 2015 are disclosed in the Condensed 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 contracts 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 each 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 value of the securities on loan and the related collateral as of August 31, 2015, if any, are disclosed in each fund's Condensed Portfolio Holdings. The value of the securities on loan and the investments of cash collateral are also disclosed in each fund's Statement of Assets and Liabilities.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the 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 appreciation or depreciation arises 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
38
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Financial Notes (continued)
2. Significant Accounting Policies (continued):
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 contract 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:
The funds make distributions from net investment income and 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.
(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 net realized 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, 2015, if any, are reflected in each fund's Statement of Assets and Liabilities.
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Schwab International Equity ETFs
Financial Notes (continued)
2. Significant Accounting Policies (continued):
(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.
(k) New Accounting Pronouncements:
In June 2014, Accounting Standards Update (ASU) No. 2014-11, Topic 806 Transfers and Servicing — Repurchase-to-Maturity Transactions, Repurchase Financings and Disclosures, was issued and is effective for interim periods beginning after March 15, 2015 and annual periods beginning after December 15, 2014. The ASU modifies accounting guidance and enhances disclosure requirements for repurchase agreement and securities lending transactions. Management is currently evaluating the impact the adoption of ASU 2014-11 may have on the funds’ financial statement disclosures.
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, the funds follow the securities included in the 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 the funds' expenses, the funds' performance may be below that of their respective 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- and Mid-Cap Risk. Certain funds invest in large- and mid-cap stocks. Both large- and mid-cap stocks tend to go in and out of favor based on market and economic conditions. However, stocks of mid-cap companies tend to be more vulnerable to adverse business or economic events than larger more established companies. During a period when large- and mid-cap stocks fall behind other types of investments—small-cap stocks, for instance—a fund’s large- and 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 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 American Depositary receipts (ADRs), Global Depositary receipts (GDRs), and European Depositary receipts (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
40
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Financial Notes (continued)
3. Risk Factors (continued):
markets, may be more volatile. To the extent a fund's investments in a single country or a limited number of countries represent a large 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. Emerging market 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, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.
Sampling Index Tracking Risk. Each fund uses statistical sampling techniques, and as a result, a fund may not fully replicate the index and may hold securities not included in the index. As a result, a fund is subject to the risk that the investment adviser’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. Because each fund utilizes a sampling approach, it may not track the return of the index as well as it would if a fund purchased all of the securities in its benchmark index.
Tracking Error Risk. As an index fund, each fund seeks to track the performance of the index, although it may not be successful in doing so. The divergence between the performance of a fund and the 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. The fund's use of derivatives could reduce the fund's performance, increase the fund's volatility, and cause the fund to lose more than the initial amount invested. Furthermore, the use of derivatives subject to regulation by the Commodity Futures Trading Commission (CFTC) could cause the fund to become a commodity pool, which would require the fund to comply with certain CFTC rules.
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.
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.
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.
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 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
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Schwab International Equity ETFs
Financial Notes (continued)
3. Risk Factors (continued):
fund in the secondary market, and may receive less than NAV when they sell those shares in the secondary market. (See the unaudited Frequency Distribution of Discounts and Premiums in Other Information for an overview showing the frequency at which the daily closing price was at a discount or a premium to a fund's daily NAV.)
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 International Equity ETF | Schwab International Small-Cap Equity ETF | Schwab Emerging Markets Equity ETF | ||
| 0.08% | 0.18%* | 0.14% |
*Prior to March 4, 2015, the advisory fee was 0.19%.
Certain Schwab funds may own shares of other Schwab funds. The table below reflects the percentages of shares of each fund in this report that are owned by other Schwab funds as of August 31, 2015, as applicable:
| Underlying Funds | |||||||
| Schwab International Equity ETF | Schwab International Small-Cap Equity ETF | Schwab Emerging Markets Equity ETF | |||||
| Schwab VIT Balanced Portfolio | 0.1% | 0.2% | 0.2% | ||||
| Schwab VIT Balanced with Growth Portfolio | 0.5% | 0.5% | 0.5% | ||||
| Schwab VIT Growth Portfolio | 0.6% | 1.0% | 0.7% | ||||
Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions with other funds in the Fund Complex (for definition refer to Trustees and Officers section). All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds/portfolios. The interfund lending facility is subject to the oversight and periodic review of the Board. The funds had no interfund borrowing or lending activity during the period.
5. Other Service Providers:
SEI Investments Distribution Co. is the principal underwriter and distributor of shares of the funds.
State Street Bank and Trust Company (State Street) serves as the funds’ transfer agent. As part of these services, the transfer agent maintains records pertaining to the sale, redemption and transfer of the funds’ shares.
State Street also serves as custodian and accountant for the funds. The custodian is responsible for the daily safekeeping of securities and cash held by the funds. The funds’ accountant maintains all books and records related to the funds’ transactions.
6. Board of Trustees:
The Board may include people who are officers and/or directors of CSIM or its affiliates. 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.
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Schwab International Equity ETFs
Financial Notes (continued)
7. Borrowing from Banks:
The funds have access to custodian overdraft facilities. During the period, the funds also had access 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 an interest expense, which is disclosed on a fund's Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
Effective October 8, 2015, the existing line of credit was terminated and the funds became participants in a syndicated, committed line of credit of $530 million with State Street, as agent.
8. Derivatives:
Certain funds entered into equity index futures contracts during the report period. The funds invested in futures contracts to equitize available cash. The fair value and variation margin for futures contracts held at August 31, 2015 are presented on the Condensed Portfolio Holdings and Statement of Assets and Liabilities, respectively. The net realized and change in 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 International Equity ETF | $4,871,444 | 53 | |
| Schwab International Small-Cap Equity ETF | 559,785* | 6* | |
| Schwab Emerging Markets Equity ETF | 2,106,731 | 45 |
| * | During the period, the fund did not hold futures contracts at any month-end. The average value and number of contracts were calculated by aggregating the highest daily values held each month during the period. |
9. Purchases and Sales/Maturities of Investment Securities:
For the period ended August 31, 2015, purchases and sales/maturities of securities (excluding in-kind transactions and short-term obligations) were as follows:
| Purchases of Securities | Sales/Maturities of Securities | ||
| Schwab International Equity ETF | $287,350,973 | $132,543,764 | |
| Schwab International Small-Cap Equity ETF | 136,300,742 | 107,131,896 | |
| Schwab Emerging Markets Equity ETF | 246,770,177 | 106,588,738 |
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 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.
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Schwab International Equity ETFs
Financial Notes (continued)
10. In-Kind Transactions (continued):
The in-kind transactions for the period ended August 31, 2015 were as follows:
| In-Kind Purchases of Securities | In-Kind Sales of Securities | ||
| Schwab International Equity ETF | $1,696,523,566 | $21,727,044 | |
| Schwab International Small-Cap Equity ETF | 257,035,447 | 19,037,251 | |
| Schwab Emerging Markets Equity ETF | 241,396,487 | 12,579,607 |
For the period ended August 31, 2015, the funds realized net capital gains or losses resulting from in-kind redemptions of Creation Units. Because such gains or losses are not taxable to the funds and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to capital received from investors at the end of the funds' tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized in-kind gains or losses for the period ended August 31, 2015 are disclosed in the funds' Statements of Operations.
11. Federal Income Taxes
As of August 31, 2015, the components of distributable earnings on a tax-basis were as follows:
| Schwab International Equity ETF | Schwab International Small-Cap Equity ETF | Schwab Emerging Markets Equity ETF | |||
| Undistributed ordinary income | $77,629,354 | $10,434,209 | $26,337,843 | ||
| Undistributed long-term capital gains | — | — | — | ||
| Unrealized appreciation | 286,249,865 | 70,752,434 | 95,198,942 | ||
| Unrealized depreciation | (406,984,361) | (65,566,535) | (304,952,228) | ||
| Other unrealized appreciation (depreciation) | (227,123) | (13,918) | (1,413,997) | ||
| Net unrealized appreciation (depreciation) | (120,961,619) | 5,171,981 | (211,167,283) |
The primary difference between book-basis and tax-basis unrealized appreciation or unrealized depreciation of investments is the tax deferral of losses on wash sales.
Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of August 31, 2015, the funds had capital loss carryforwards available to offset future net capital gains before the expiration dates as follows:
| Expiration Date | Schwab International Equity ETF | Schwab International Small-Cap Equity ETF | Schwab Emerging Markets Equity ETF | |||
| August 31, 2019 | $2,345,874 | $215,545 | $1,091,404 | |||
| No expiration* | 73,824,638 | 38,302,411 | 118,710,606 | |||
| Total | $76,170,512 | $38,517,956 | $119,802,010 |
| * | 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. |
For tax purposes, net realized capital losses and late-year ordinary losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. For the year ended August 31, 2015, the funds had no capital losses deferred and no capital loss carryforwards utilized.
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Schwab International Equity ETFs
Financial Notes (continued)
11. Federal Income Taxes (continued):
The tax-basis components of distributions paid during the current and prior fiscal years were:
| Schwab International Equity ETF | Schwab International Small-Cap Equity ETF | Schwab Emerging Markets Equity ETF | |||
| Current period distributions | |||||
| Ordinary income | $79,192,160 | $9,800,110 | $32,001,840 | ||
| Long-term capital gains | — | — | — | ||
| Prior period distributions | |||||
| Ordinary income | 41,541,200 | 9,580,780 | 23,217,480 | ||
| Long-term capital gains | — | — | — |
Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as short-term capital gains and losses, in-kind transactions, capital losses related to wash sales, and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes. The fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
The permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments have no impact on net assets or the results of operations. As of August 31, 2015, the funds made the following reclassifications:
| Schwab International Equity ETF | Schwab International Small-Cap Equity ETF | Schwab Emerging Markets Equity ETF | |||
| Capital shares | $6,613,628 | $4,549,736 | $3,195,104 | ||
| Undistributed net investment income | (467,300) | 1,446,687 | (761,850) | ||
| Net realized gains and losses | (6,146,328) | (5,996,423) | (2,433,254) |
For the period ended August 31, 2015, the following funds reclassified non-taxable security gains and losses realized on the in-kind redemption of Creation Units (Note 10) as an increase or decrease to capital received from investors in the Statement of Assets and Liabilities as follows:
| Schwab International Equity ETF | Schwab International Small-Cap Equity ETF | Schwab Emerging Markets Equity ETF | |||
| $6,764,737 | $5,271,166 | $3,243,692 |
As of August 31, 2015, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds' financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended August 31, 2015, 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
45
Schwab International Equity ETFs
Financial Notes (continued)
12. Other (continued):
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 a fund's investment 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:
Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
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Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of:
Schwab International Equity ETF
Schwab International Small-Cap Equity ETF
Schwab Emerging Markets Equity ETF
Schwab International Equity ETF
Schwab International Small-Cap Equity ETF
Schwab Emerging Markets Equity ETF
In our opinion, the accompanying statements of assets and liabilities, including the condensed portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Schwab International Equity ETF, Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF (three of the funds constituting Schwab Strategic Trust, hereafter referred to as the “Funds”) at August 31, 2015, the results of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
San Francisco, California
October 16, 2015
San Francisco, California
October 16, 2015
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Other Federal Tax Information (unaudited)
The funds may elect to pass on the benefits of the foreign tax credit to its shareholders for the period ended August 31, 2015, and the respective foreign source income on the funds as follows:
| Foreign Tax Credit | Foreign Source Income | ||
| Schwab International Equity ETF | $7,994,705 | $105,697,221 | |
| Schwab International Small-Cap Equity ETF | 1,010,226 | 13,024,570 | |
| Schwab Emerging Markets Equity ETF | 4,439,769 | 40,289,920 |
For the period ended August 31, 2015, the funds designated the following amounts of the dividend distributions as qualified dividends for the purpose of the maximum rate under section 1(h)(ii) of the Internal Revenue Code. Shareholders will be notified in January 2016 via IRS form 1099 of the amount for use in preparing their 2015 income tax return.
| Schwab International Equity ETF | $75,074,637 |
| Schwab International Small-Cap Equity ETF | 6,204,166 |
| Schwab Emerging Markets Equity ETF | 21,682,051 |
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Other Information (unaudited)
Frequency Distribution of Discounts and Premiums
Market Price vs. NAV as of August 31, 2015
Market Price vs. NAV as of August 31, 2015
The following charts are provided to show the frequency at which the daily closing market price on the NYSE Arca, Inc. (Exchange), the secondary market for shares of each fund, was at a discount or premium to such fund's daily NAV. The “Market Price” of each fund generally is determined using the midpoint between the highest bid and lowest offer on the Exchange, as of the time that the fund's NAV is calculated. The discount or premium is the percentage difference between the NAV and the Market Price of a fund. A discount is the amount that a fund is trading below the reported NAV, expressed as a percentage of NAV. A premium is the amount that a fund is trading above the reported NAV, expressed as a percentage of NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of each fund will fluctuate in accordance with changes in its NAV, as well as supply and demand. The data presented below represents past performance and can not be used to predict future results. The chart does not include days in which the NAV equals the Market Price.
| Number of Days Market Price Above NAV | Number of Days Market Price Below NAV | ||||||||||||||
| 1-49 Basis Points | 50-99 Basis Points | 100-199 Basis Points | >200 Basis Points | 1-49 Basis Points | 50-99 Basis Points | 100-199 Basis Points | >200 Basis Points | ||||||||
| Schwab International Equity ETF | |||||||||||||||
| Commencement of trading | |||||||||||||||
| 11/3/09 through 8/31/15 | 556 | 497 | 129 | 11 | 169 | 64 | 26 | 2 | |||||||
| Schwab International Small-Cap Equity ETF | |||||||||||||||
| Commencement of trading | |||||||||||||||
| 1/14/10 through 8/31/15 | 426 | 578 | 181 | 3 | 135 | 55 | 27 | 5 | |||||||
| Schwab Emerging Markets Equity ETF | |||||||||||||||
| Commencement of trading | |||||||||||||||
| 1/14/10 through 8/31/15 | 393 | 413 | 223 | 17 | 226 | 92 | 38 | 8 | |||||||
49
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 95 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, and Position(s) with the trust; (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
| Robert W. Burns 1959 Trustee (Trustee Schwab Strategic Trust since 2009) | Retired/Private Investor (Jan. 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 Schwab Strategic Trust since 2012) | CEO and Owner, Kochis Global (wealth management consulting) (May 2012 – present); Chairman and CEO, Aspiriant, LLC (wealth management) (Jan. 2008 – April 2012). | 21 | None |
| Charles A. Ruffel 1956 Trustee (Trustee Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2015) | Co-Chief Executive Officer, Kudu Investment Management, LLC (financial services) (Jan. 2015 – present); Partner, Kudu Advisors, LLC (financial services) (June 2008 – Jan. 2015); Advisor, Asset International, Inc. (publisher of financial services information) (Aug. 2008 – Jan. 2015). | 95 | None |
| Interested Trustees | |||
| Name, Year of Birth, and Position(s) with the trust; (Terms of office, and length of Time Served) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
| Walter W. Bettinger II2 1960 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust and Laudus Institutional Trust since 2010) | Director, President and Chief Executive Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (2008 – present); Director, Charles Schwab Bank (2006 – present); and Director, Schwab Holdings, Inc. (2008 – present). | 95 | Director, The Charles Schwab Corporation (2008 – present) |
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| 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 since 2010) | 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; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (January 2011 – present); 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 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 Funds plc and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present). |
| Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer 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, Laudus Funds and Schwab ETFs (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 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, Laudus Funds and Schwab ETFs (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 since 2011) | Senior Vice President (Sept. 2011 – present), Vice President (March 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present), Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; 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 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. |
51
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 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. 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.
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 pass-throughs), 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.
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.
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.
FTSE Developed ex-US Index An index comprised of approximately 85% large-cap stocks and 15% mid-cap stocks from more than 20 developed markets, excluding the US. This index defines the large- and mid-cap stocks as approximately the top 90% of the eligible universe. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
FTSE Developed Small Cap ex-US Liquid Index An index comprised of small-cap companies in developed countries excluding the United States, as defined by the index provider. The index defines the small-cap universe as approximately the bottom 10% of the eligible universe with a minimum free float capitalization of $150 million. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
FTSE Emerging Index An index comprised of large- and mid-cap companies in emerging countries, as defined by the index provider. The index defines the large and mid-cap universe as approximately the top 90% of the eligible universe. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
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. Free-float market capitalization is a variation of market capitalization that only includes shares generally available to the public, and excludes shares of a company held by entities such as the government. Modified market capitalization weighting represents a mix between conventional market capitalization weighting and equal weighting.
market price return The return based on the change in market price per share of the fund over a given time period. Market price returns assume that dividends and capital gain distributions have been reinvested in the fund at market price.
median market cap The midpoint of the range of market caps of the stocks held by a fund. There are different ways of calculating median market cap. With a simple median, half of the stocks in the fund’s portfolio would be larger than the median,
52
and half would be smaller. With a weighted median (the type that is calculated for these funds), half of the fund’s assets are invested in stocks that are larger than the median market cap, and half in stocks that are smaller.
MSCI EAFE (Europe, Australasia, Far East) Index A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. 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.
MSCI Emerging Markets Index A free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
net asset value (NAV) The value of one share of a fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding.
NAV return The return based on the change in NAV of the fund over a given time period. NAV returns assume that dividends and capital gain distributions have been reinvested in the fund.
offer (ask) The lowest price at which an individual is willing to sell a security.
open The price at which a security opened for trading on a given day.
outstanding shares, shares outstanding When speaking of the fund, indicates all shares currently held by investors.
price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.
price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.
primary market The market that deals with the issuance of new securities.
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.
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.
53
PRIVACY NOTICE
THIS IS NOT PART OF THE SHAREHOLDER REPORT
THIS IS NOT PART OF THE SHAREHOLDER REPORT
A Commitment to Your Privacy
Your Privacy Is Not for Sale
We do not and will not sell your personal information to anyone, for any reason.
We are committed to protecting the privacy of information we maintain about you. Below are details about our commitment, including the types of information we collect and how we use and share that information. This Privacy Notice applies to you only if you are an individual who invests directly in the funds by placing orders through the funds’ transfer agent. If you place orders through your brokerage account at Charles Schwab & Co., Inc. or an account with another broker-dealer, investment advisor, 401(k) plan, employee benefit plan, administrator, bank or other financial intermediary, you are covered by the privacy policies of that financial institution and should consult those policies.
How We Collect Information About You
We collect personal information about you in a number of ways.
• APPLICATION AND REGISTRATION
INFORMATION.
INFORMATION.
We collect personal information from you when you open an account or utilize one of our services. We may also collect information about you from third parties such as consumer reporting agencies to verify your identity. The information we collect may include personal information, including your Social Security number, as well as details about your interests, investments and investment experience.
• TRANSACTION AND EXPERIENCE INFORMATION.
Once your account has been opened, we collect and maintain personal information about your account activity, including your transactions, balances, positions and history. This information allows us to administer your account and provide the services you have requested.
• WEBSITE USAGE.
When you visit our websites, we may use devices known as “cookies,” graphic interchange format files (GIFs), or other similar web tools to enhance your web experience. These
tools help us to recognize you, maintain your web session, and provide a more personalized experience. To learn more, please go to www.schwab.com/privacy.
How We Share and Use Your Information
We provide access to information about you to our affiliated companies, outside companies and other third parties in certain limited circumstances, including:
• to help us process transactions for your account;
• when we use other companies to provide services for us, such as printing and mailing your account statements;
• when we believe that disclosure is required or permitted under law (for example, to cooperate with regulators or law enforcement, resolve consumer disputes, perform credit/authentication checks, or for risk control).
State Laws
We will comply with state laws that apply to the disclosure or use of information about you.
Safeguarding Your Information — Security Is a Partnership
We take precautions to ensure the information we collect about you is protected and is accessed only by authorized individuals or organizations.
Companies we use to provide support services are not allowed to use information about our shareholders for their own purposes and are contractually obligated to maintain strict confidentiality. We limit their use of information to the performance of the specific services we have requested.
We restrict access to personal information by our employees and agents. Our employees are trained about privacy and are required to safeguard personal information.
We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.
Contact Us
To provide us with updated information, report suspected fraud or identity theft, or for any other questions, please call the number below.
Schwab ETF™ direct investors: 1-800-435-4000
© 2015 Schwab ETFs. All rights reserved.
54
Notes
Notes
Schwab ETFs™ 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.csimfunds.com/schwabetfs_prospectus, the SEC’s website at 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.csimfunds.com/schwabetfs_prospectus or the SEC’s website at www.sec.gov.
Schwab ETFs™
U.S. ETFs
Schwab U.S. Broad Market ETF™
Schwab U.S. Large-Cap ETF™
Schwab U.S. Large-Cap Growth ETF™
Schwab U.S. Large-Cap Value ETF™
Schwab U.S. Mid-Cap ETF™
Schwab U.S. Small-Cap ETF™
Schwab U.S. Dividend Equity ETF™
Schwab U.S. REIT ETF™
Schwab U.S. Large-Cap ETF™
Schwab U.S. Large-Cap Growth ETF™
Schwab U.S. Large-Cap Value ETF™
Schwab U.S. Mid-Cap ETF™
Schwab U.S. Small-Cap ETF™
Schwab U.S. Dividend Equity ETF™
Schwab U.S. REIT ETF™
International ETFs
Schwab International Equity ETF™
Schwab International Small-Cap Equity ETF™
Schwab Emerging Markets Equity ETF™
Schwab International Small-Cap Equity ETF™
Schwab Emerging Markets Equity ETF™
Fixed Income ETFs
Schwab U.S. Aggregate Bond ETF™
Schwab Short-Term U.S. Treasury ETF™
Schwab Intermediate-Term U.S. Treasury ETF™
Schwab U.S. TIPS ETF™
Schwab Short-Term U.S. Treasury ETF™
Schwab Intermediate-Term U.S. Treasury ETF™
Schwab U.S. TIPS ETF™
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
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
211 Main Street, San Francisco, CA 94105
Schwab ETFs™
1-800-435-4000
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
© 2015 Charles Schwab Investment Management, Inc. All rights reserved.
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© 2015 Charles Schwab Investment Management, Inc. All rights reserved.
Printed on recycled paper.
MFR57933-05
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00153420
Table of Contents
Annual report dated August 31, 2015, enclosed.
Schwab U.S. Equity ETFs
Schwab U.S. Broad Market ETF™
Schwab U.S. Large-Cap ETF™
Schwab U.S. Large-Cap
Growth ETF™
Growth ETF™
Schwab U.S. Large-Cap
Value ETF™
Value ETF™
Schwab U.S. Mid-Cap ETF™
Schwab U.S. Small-Cap ETF™
Schwab U.S. Dividend
Equity ETF™
Equity ETF™
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Schwab U.S. Equity ETFs
Annual Report
August 31, 2015
Schwab U.S. Broad Market ETF
Schwab U.S. Large-Cap ETF
Schwab U.S. Large-Cap
Growth ETF
Growth ETF
Schwab U.S. Large-Cap
Value ETF
Value ETF
Schwab U.S. Mid-Cap ETF
Schwab U.S. Small-Cap ETF
Schwab U.S. Dividend
Equity ETF
Equity ETF
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In This Report
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Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: SEI Investments Distribution Co. (SIDCO)
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS), which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Charles Schwab & Co., Inc. The Industry classifications used in the schedules of Portfolio Holdings are sub-categories of Sector classifications.
Performance at a Glance
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. To obtain performance information current to the most recent month end, please visit www.csimfunds.com.
| Total Returns for the 12 Months Ended August 31, 2015 | |
| Schwab U.S. Broad Market ETF (Ticker Symbol: SCHB) | |
| Market Price Return1 | 0.32% |
| NAV Return1 | 0.33% |
| Dow Jones U.S. Broad Stock Market Index | 0.31% |
| ETF Category: Morningstar Large Blend2 | -1.09% |
| Performance Details | pages 6-7 |
| Schwab U.S. Large-Cap ETF (Ticker Symbol: SCHX) | |
| Market Price Return1 | 0.49% |
| NAV Return1 | 0.43% |
| Dow Jones U.S. Large-Cap Total Stock Market Index | 0.44% |
| ETF Category: Morningstar Large Blend2 | -1.09% |
| Performance Details | pages 8-9 |
| Schwab U.S. Large-Cap Growth ETF (Ticker Symbol: SCHG) | |
| Market Price Return1 | 4.87% |
| NAV Return1 | 4.87% |
| Dow Jones U.S. Large-Cap Growth Total Stock Market Index | 4.93% |
| ETF Category: Morningstar Large Growth2 | 4.36% |
| Performance Details | pages 10-11 |
| Schwab U.S. Large-Cap Value ETF (Ticker Symbol: SCHV) | |
| Market Price Return1 | -3.62% |
| NAV Return1 | -3.71% |
| Dow Jones U.S. Large-Cap Value Total Stock Market Index | -3.69% |
| ETF Category: Morningstar Large Value2 | -2.02% |
| Performance Details | pages 12-13 |
| Total Returns for the 12 Months Ended August 31, 2015 | |
| Schwab U.S. Mid-Cap ETF (Ticker Symbol: SCHM) | |
| Market Price Return1 | 1.79% |
| NAV Return1 | 1.71% |
| Dow Jones U.S. Mid-Cap Total Stock Market Index | 1.72% |
| ETF Category: Morningstar Mid-Cap Blend2 | -2.14% |
| Performance Details | pages 14-15 |
| Schwab U.S. Small-Cap ETF (Ticker Symbol: SCHA) | |
| Market Price Return1 | -0.41% |
| NAV Return1 | -0.54% |
| Dow Jones U.S. Small-Cap Total Stock Market Index | -0.61% |
| ETF Category: Morningstar Small Blend2 | -1.17% |
| Performance Details | pages 16-17 |
| Schwab U.S. Dividend Equity ETF (Ticker Symbol: SCHD) | |
| Market Price Return1 | -3.50% |
| NAV Return1 | -3.47% |
| Dow Jones U.S. Dividend 100TM Index | -3.40% |
| ETF Category: Morningstar Large Value2 | -2.02% |
| Performance Details | pages 18-19 |
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 cannot be invested in 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 Indexes are a product of S&P Dow Jones Indices LLC and/or its affiliates, and have been licensed for use by CSIM. The Schwab U.S. Equity ETFs, based on their respective Dow Jones Indexes, are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, 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 products.
| 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. |
2Schwab U.S. Equity ETFs
From the President
Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.
Dear Shareholder,
At Charles Schwab Investment Management, our goal is to provide foundational products with consistent performance that help investors to build well-diversified portfolios. The Schwab U.S. Equity ETFs track U.S. stock indices constructed by an industry-leading index provider, and offer the benefits of ETF investing, including transparency, intraday trading, and potential tax efficiency, at some of the lowest operating expense ratios in the industry.
For the 12-month reporting period ended August 31, 2015, the funds produced returns that closely tracked their respective indices. U.S. economic news was mixed, as improving consumer sentiment and the conclusion of the Federal Reserve’s bond buying program were offset by falling commodity prices and continued speculation surrounding the timing of a potential short-term interest rate increase. International developments also played a role in the performance of U.S. equities. The debt crisis in Greece, aggressive stimulus policies by central banks in Europe and Japan, and the deceleration of the Chinese economy weighed heavily on markets, and contributed to heightened volatility and uncertainty over the reporting period.
Reflecting these conditions, the Dow Jones U.S. Broad Stock Market Index returned 0.3% for the reporting period. Large-cap stocks generally outperformed small-cap stocks, and growth stocks generally outperformed value stocks. From a sector standpoint, the Health Care and Consumer Discretionary sectors performed well, while the Energy sector
Asset Class Performance Comparison % returns during the 12 months ended 8/31/2015
For index definitions, please see the Glossary.
Data source: Index provider websites and CSIM.
Nothing in this report represents a recommendation of a security by the investment adviser.
Management views and portfolio holdings may have changed since the report date.
Schwab U.S. Equity ETFs3
From the President continued
For the 12-month reporting period ended August 31, 2015, the funds produced returns that closely tracked their respective indices.
underperformed by comparison, in part due to the extreme fluctuations in the price of crude oil during the 12-month reporting period.
For more information about the Schwab U.S. Equity ETFs, please continue reading this report. In addition, you can find further details about these ETFs by visiting our website at www.csimfunds.com. We are also happy to hear from you at 1-800-435-4000.
Sincerely,
Index figures assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Past performance is not an indication of future results.
4Schwab U.S. Equity ETFs
Fund Management
 | Agnes Hong, CFA, Vice President and Head of Passive Equity Products, leads the portfolio management teams of Schwab’s passive equity 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 (currently BlackRock), where she managed institutional index funds and quantitative active funds. Prior to that, Ms. Hong worked in management consulting and product management, servicing global financial services clients. |
 | Ferian Juwono, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors), where he spent over three years as a portfolio manager, managing equity index funds for institutional clients, and nearly two years as a senior business analyst. Prior to that, Mr. Juwono worked for over four years as a senior financial analyst with Union Bank of California. |
 | Chuck Craig, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2012, Mr. Craig worked at Guggenheim Funds (formerly Claymore Group), where he spent over five years as a managing director of portfolio management and supervision, and three years as vice president of product research and development. Prior to that, he worked as an equity research analyst at First Trust Portfolios (formerly Niké Securities), and a trader and analyst at PMA Securities, Inc. |
Schwab U.S. Equity ETFs5
Schwab U.S. Broad Market ETF
The Schwab U.S. Broad Market ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Broad Stock Market Index (the index). The index includes the largest 2,500 publicly traded U.S. companies for which pricing information is readily available. The index is a float-adjusted market capitalization weighted index that reflects the shares of securities actually available to investors in the marketplace. The fund invests in a representative sample of securities included in the index that, when taken together, are expected to perform similarly to the index as a whole. Due to the use of representative sampling, the fund may not hold all of the securities in the index.
Market Highlights. U.S. stocks posted a marginally positive return for the 12-month reporting period, despite achieving multiple record highs during the period. Toward the end of the period, market volatility across the globe increased dramatically, with wide swings in daily gains and losses, triggered primarily by worries over slowing growth in China. Declining energy and metals prices also weighed on the market. The Federal Reserve concluded its bond-buying program in October and continued to ponder its plans for increasing interest rates throughout the period. As of the period-end, however, as a result of mixed economic signals, no action had been taken. Within the index, stocks in the Health Care and Consumer Discretionary sectors were among the better performers, while stocks in the Energy and Materials sectors were the weakest.
Performance. During the 12-month reporting period ended August 31, 2015, the fund closely tracked the index. The fund’s market price return was 0.32% and its NAV return was 0.33%. The index returned 0.31% during the same period.
Contributors and Detractors. The Health Care sector contributed the most to both the index’s and the fund’s returns. Representing approximately 14% of both the fund and the index, the Health Care sector returned over 14% for the reporting period. Within the sector, the fund’s strongest contributors to performance were UnitedHealth Group, a diversified managed care company, and Allergan, a global pharmaceutical company. The fund’s holdings in these two companies returned more than 35% and 46%, respectively.
Consumer Discretionary stocks also provided meaningful contributions to the returns of the index and the fund. Representing an average weight of roughly 13% of the fund and the index, the sector returned more than 9%. Two of the fund’s strongest contributors within the sector were Amazon.com, Inc. and The Home Depot, which returned over 51% and 27% for the fund, respectively, reflecting consumer optimism over the period.
The Energy sector was the largest detractor from the performance of both the fund and the index. While representing only roughly 7% of both the fund and the index on average, the sector’s return for both was roughly –32%. With oil prices falling sharply throughout the period—recovering only marginally in the last two weeks of August—oil companies were among the largest detractors to performance. Among the fund’s holdings, Chevron Corporation and Exxon Mobil Corporation were particularly detrimental, with those positions down more than 34% and 21%, respectively.
The Materials sector also detracted from both fund and index performance, as global commodity prices declined significantly during the period. Constituting less than 4% of both the fund and the index, the sector fell more than 13% for the period. Within the sector, Freeport-MacMoRan Inc., a large global producer of copper and gold, was the fund’s largest detractor, down more than 69% for the period. LyondellBasell, a multinational chemical company that manufactures materials for a wide range of industrial applications, was also a significant detractor from performance, down more than 22% for the 12-month reporting period.
As of 08/31/15:
| Statistics | |
| Number of Holdings | 1,989 |
| Weighted Average Market Cap (millions) | $105,387 |
| Price/Earnings Ratio (P/E) | 22.6 |
| Price/Book Ratio (P/B) | 2.4 |
| Portfolio Turnover Rate1 | 3% |
| Sector Weightings % of Investments | |
| Information Technology | 19.1% |
| Financials | 18.0% |
| Health Care | 14.7% |
| Consumer Discretionary | 13.5% |
| Industrials | 10.6% |
| Consumer Staples | 8.4% |
| Energy | 6.6% |
| Materials | 3.3% |
| Utilities | 3.0% |
| Telecommunication Services | 2.2% |
| Other | 0.6% |
| Total | 100.0% |
| Top Equity Holdings % of Net Assets2 | |
| Apple, Inc. | 3.0% |
| Microsoft Corp. | 1.6% |
| Exxon Mobil Corp. | 1.5% |
| Johnson & Johnson | 1.2% |
| Wells Fargo & Co. | 1.2% |
| General Electric Co. | 1.2% |
| Berkshire Hathaway, Inc., Class B | 1.1% |
| JPMorgan Chase & Co. | 1.1% |
| AT&T, Inc. | 0.9% |
| Pfizer, Inc. | 0.9% |
| Total | 13.7% |
Management views and portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of trading and management costs incurred by the fund.
Source of Sector Classification: S&P and MSCI.
| 1 | Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
| 2 | This list is not a recommendation of any security by the investment adviser. |
6Schwab U.S. Equity ETFs
Schwab U.S. Broad Market ETF
Performance and Fund Facts as of 08/31/15
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.csimfunds.com.
November 3, 2009 – August 31, 2015
Performance of Hypothetical
$10,000 Investment1
Performance of Hypothetical
$10,000 Investment1
Average Annual Total Returns1
| Fund and Inception Date | 1 Year | 5 Years | Since Inception* |
| Fund: Schwab U.S. Broad Market ETF (11/3/09) | |||
| Market Price Return2 | 0.32% | 16.03% | 14.31% |
| NAV Return2 | 0.33% | 16.02% | 14.32% |
| Dow Jones U.S. Broad Stock Market Index | 0.31% | 16.02% | 14.35% |
| ETF Category: Morningstar Large Blend3 | -1.09% | 14.93% | 13.30% |
Fund Expense Ratio4: 0.04%
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
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 — Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). The Dow Jones U.S. Broad Stock Market Index is a product of S& P Dow Jones Indices LLC and/or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Broad Market ETF is not sponsored, endorsed, soldor 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.
| * | Inception (11/3/09) 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 U.S. Equity ETFs7
Schwab U.S. Large-Cap ETF
The Schwab U.S. Large-Cap ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Total Stock Market Index (the index). The index includes the large-cap portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The index comprises the components ranked 1–750 by full market capitalization. The fund will generally give the same weight to a given stock as does the index.
Market Highlights. U.S. stocks posted a marginally positive return for the 12-month reporting period, despite achieving multiple record highs during the period. Toward the end of the period, market volatility across the globe increased dramatically, with wide swings in daily gains and losses, triggered primarily by worries over slowing growth in China. Declining energy and metals prices also weighed on the market. The Federal Reserve concluded its bond-buying program in October and continued to ponder its plans for increasing interest rates throughout the period. As of the period-end, however, as a result of mixed economic signals, no action had been taken. Within the index, stocks in the Health Care and Consumer Discretionary sectors were among the better performers, while stocks in the Energy and Materials sectors were the weakest.
Performance. During the 12-month reporting period ended August 31, 2015, the fund closely tracked the index. The fund’s market price return was 0.49% and its NAV return was 0.43%. The index returned 0.44% during the same period.
Contributors and Detractors. The Health Care sector contributed the most to both the index’s and the fund’s returns. Representing approximately 14% of both the fund and the index, the sector returned over 12% for the reporting period. Within the sector, the fund’s strongest contributors were UnitedHealth Group, a diversified managed care company, and Allergan, a global pharmaceutical company. The fund’s holdings in these two companies returned more than 35% and 46%, respectively.
Consumer Discretionary stocks also provided meaningful contributions to the returns of the index and the fund. Representing an average weight of over 13% of the fund and the index, the sector returned more than 10%. Two of the fund’s strongest contributors within the sector were Amazon.com, Inc. and The Home Depot, which returned over 51% and 27% for the fund, respectively, reflecting consumer optimism over the period.
The Energy sector was the largest detractor from the performance of both the fund and the index. While representing only roughly 8% of both the fund and the index on average, the sector’s return for both was roughly –31%. With oil prices falling sharply throughout the period—recovering only marginally in the last two weeks of August—oil companies were among the largest detractors to performance. Among the fund’s holdings, Chevron Corporation and Exxon Mobil Corporation were particularly detrimental, with those positions down more than 34% and 21%, respectively.
The Materials sector also detracted from both fund and index performance, as global commodity prices declined significantly during the period. Constituting just over 3% of both the fund and the index, the sector fell more than 12% for the period. Within the sector, Freeport-MacMoRan Inc., a large global producer of copper and gold, was the fund’s largest detractor, down more than 69% for the period. LyondellBasell, a multinational chemical company that manufactures materials for a wind range of industrial applications, was also a significant detractor from performance, down more than 22% for the 12-month reporting period.
As of 08/31/15:
| Statistics | |
| Number of Holdings | 744 |
| Weighted Average Market Cap (millions) | $119,176 |
| Price/Earnings Ratio (P/E) | 21.5 |
| Price/Book Ratio (P/B) | 2.5 |
| Portfolio Turnover Rate1 | 4% |
| Sector Weightings % of Investments | |
| Information Technology | 19.4% |
| Financials | 17.1% |
| Health Care | 14.9% |
| Consumer Discretionary | 13.5% |
| Industrials | 10.1% |
| Consumer Staples | 9.2% |
| Energy | 7.0% |
| Materials | 3.1% |
| Utilities | 3.0% |
| Telecommunication Services | 2.4% |
| Other | 0.3% |
| Total | 100.0% |
| Top Equity Holdings % of Net Assets2 | |
| Apple, Inc. | 3.4% |
| Microsoft Corp. | 1.8% |
| Exxon Mobil Corp. | 1.7% |
| Johnson & Johnson | 1.4% |
| Wells Fargo & Co. | 1.3% |
| General Electric Co. | 1.3% |
| Berkshire Hathaway, Inc., Class B | 1.3% |
| JPMorgan Chase & Co. | 1.2% |
| AT&T, Inc. | 1.1% |
| Pfizer, Inc. | 1.0% |
| Total | 15.5% |
Management views and portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of trading and management costs incurred by the fund.
Source of Sector Classification: S&P and MSCI.
| 1 | Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
| 2 | This list is not a recommendation of any security by the investment adviser. |
8Schwab U.S. Equity ETFs
Schwab U.S. Large-Cap ETF
Performance and Fund Facts as of 08/31/15
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.csimfunds.com.
November 3, 2009 – August 31, 2015
Performance of Hypothetical
$10,000 Investment1
Performance of Hypothetical
$10,000 Investment1
Average Annual Total Returns1
| Fund and Inception Date | 1 Year | 5 Years | Since Inception* |
| Fund: Schwab U.S. Large-Cap ETF (11/3/09) | |||
| Market Price Return2 | 0.49% | 15.85% | 14.03% |
| NAV Return2 | 0.43% | 15.84% | 14.03% |
| Dow Jones U.S. Large-Cap Total Stock Market Index | 0.44% | 15.94% | 14.12% |
| ETF Category: Morningstar Large Blend3 | -1.09% | 14.93% | 13.30% |
Fund Expense Ratio4: 0.04%
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
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 — Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). The Dow Jones U.S. Large-Cap Total Stock Market Index is a product of S&P Dow Jones Indices LLC and/or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Large-Cap ETF is not sponsored, endorsed, soldor 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.
| * | Inception (11/3/09) 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 U.S. Equity ETFs9
Schwab U.S. Large-Cap Growth ETF
The Schwab U.S. Large-Cap Growth ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index (the index). The index includes the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The index includes the components ranked 1-750 by full market capitalization and that are classified as “growth” based on a number of factors. The fund will generally give the same weight to a given stock as does the index.
Market Highlights. U.S. stocks posted a marginally positive return for the 12-month reporting period, despite achieving multiple record highs during the period. Toward the end of the period, market volatility across the globe increased dramatically, with wide swings in daily gains and losses, triggered primarily by worries over slowing growth in China. Declining energy and metals prices also weighed on the market. The Federal Reserve concluded its bond-buying program in October and continued to ponder its plans for increasing interest rates throughout the period. As of the period-end, however, as a result of mixed economic signals, no action had been taken. Within the index, stocks in the Health Care and Consumer Discretionary sectors were among the better performers, while stocks in the Energy and Utilities sectors were the weakest.
Performance. During the 12-month reporting period ended August 31, 2015 the fund closely tracked the index. The fund’s market price return was 4.87%, as was its NAV return.
Contributors and Detractors. The Health Care sector contributed the most to both the index’s and the fund’s returns. Representing more than 16% of both the fund and the index, the sector returned over 17% for the reporting period. Within the sector, the fund’s strongest contributors were UnitedHealth Group, a diversified managed care company, and Allergan, a global pharmaceutical company, up more than 35% and 46%, respectively.
Consumer Discretionary stocks also provided meaningful contributions to the returns of the index and the fund. Representing an average weight of over 18% of both the fund and the index, the sector returned more than 15%. Within the sector, two of the fund’s strongest contributors were Amazon.com, Inc. and The Home Depot, which returned over 51% and 27% for the fund, respectively, reflecting consumer optimism over the period.
The Energy sector was the largest detractor from the performance of both the fund and the index. While constituting less than 6% of both the fund and the index on average, the sector’s return for both was roughly –36%. Among the fund’s holdings, the two largest detractors from performance were Halliburton and Schlumberger Limited, two large global oil field services companies with operations in scores of countries; the fund’s positions in these two companies were down more than 40% and 27%, respectively.
The Industrials sector, constituting nearly 12% of both the fund and the index, also detracted from performance over the period, with the sector down nearly 4%. Within the sector, Caterpillar Inc. and Union Pacific were the two largest detractors. Caterpillar, the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives, was down more than 27% for the period; Union Pacific Corporation, which operates long-haul freight locomotives over 32,000 miles across 23 states in the western two-thirds of the United States, fell nearly 17%. Both companies suffered as a result of declining commodity prices, which resulted in significant decreases in demand.
As of 08/31/15:
| Statistics | |
| Number of Holdings | 398 |
| Weighted Average Market Cap (millions) | $127,087 |
| Price/Earnings Ratio (P/E) | 24.8 |
| Price/Book Ratio (P/B) | 3.2 |
| Portfolio Turnover Rate1 | 10% |
| Sector Weightings % of Investments | |
| Information Technology | 26.5% |
| Consumer Discretionary | 19.6% |
| Health Care | 16.8% |
| Industrials | 11.1% |
| Financials | 10.9% |
| Consumer Staples | 6.2% |
| Energy | 5.0% |
| Materials | 3.0% |
| Telecommunication Services | 0.4% |
| Utilities | 0.1% |
| Other | 0.4% |
| Total | 100.0% |
| Top Equity Holdings % of Net Assets2 | |
| Apple, Inc. | 6.9% |
| Berkshire Hathaway, Inc., Class B | 2.6% |
| Amazon.com, Inc. | 2.1% |
| Facebook, Inc., Class A | 2.0% |
| Google, Inc., Class A | 2.0% |
| Google, Inc., Class C | 1.9% |
| The Walt Disney Co. | 1.7% |
| Gilead Sciences, Inc. | 1.6% |
| The Home Depot, Inc. | 1.6% |
| Comcast Corp., Class A | 1.5% |
| Total | 23.9% |
Management views and portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of trading and management costs incurred by the fund.
Source of Sector Classification: S&P and MSCI.
| 1 | Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
| 2 | This list is not a recommendation of any security by the investment adviser. |
10Schwab U.S. Equity ETFs
Schwab U.S. Large-Cap Growth ETF
Performance and Fund Facts as of 08/31/15
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.csimfunds.com.
December 11, 2009 – August 31, 2015
Performance of Hypothetical
$10,000 Investment1
Performance of Hypothetical
$10,000 Investment1
Average Annual Total Returns1
| Fund and Inception Date | 1 Year | 5 Years | Since Inception* |
| Fund: Schwab U.S. Large-Cap Growth ETF (12/11/09) | |||
| Market Price Return2 | 4.87% | 17.87% | 14.62% |
| NAV Return2 | 4.87% | 17.85% | 14.62% |
| Dow Jones U.S. Large-Cap Growth Total Stock Market Index | 4.93% | 17.98% | 14.74% |
| ETF Category: Morningstar Large Growth3 | 4.36% | 18.13% | 15.06% |
Fund Expense Ratio4: 0.07%
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 cannot be invested in directly. Performance results less than one year are not annualized.
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 — Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). The Dow Jones U.S. Large-Cap Growth Total Stock Market Index is a product of S&P Dow Jones Indices LLC and/or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Large-Cap Growth ETF is not sponsored, endorsed,sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, 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.
| * | Inception (12/11/09) 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 U.S. Equity ETFs11
Schwab U.S. Large-Cap Value ETF
The Schwab U.S. Large-Cap Value ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Value Total Stock Market Index (the index). The index includes the large-cap value portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The index includes the components ranked 1-750 by full market capitalization and that are classified as “value” based on a number of factors. The fund will generally give the same weight to a given stock as does the index.
Market Highlights. U.S. stocks posted a marginally positive return for the 12-month reporting period, despite achieving multiple record highs during the period. Toward the end of the period, market volatility across the globe increased dramatically, with wide swings in daily gains and losses, triggered primarily by worries over slowing growth in China. Declining energy and metals prices also weighed on the market. The Federal Reserve concluded its bond-buying program in October and continued to ponder its plans for increasing interest rates throughout the period. As of the period-end, however, as a result of mixed economic signals, no action had been taken. Within the index, stocks in the Health Care and Consumer Staples sectors were among the better performers, while stocks in the Energy and Materials sectors were the weakest.
Performance. During the 12-month reporting period ended August 31, 2015, the fund closely tracked the index. The fund’s market price return was –3.62% and its NAV return was –3.71% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned –3.69% during the same period.
Contributors and Detractors. The Health Care sector contributed the most to both the index’s and the fund’s returns. Representing more than 12% of both the fund and the index, the sector returned over 7% for the reporting period. Within the sector, the fund’s strongest contributors were Pfizer Inc. and Eli Lilly and Company, two large, multinational pharmaceutical companies. For the 12-month reporting period, the fund’s holdings in the two companies were up more than 13% and 33%, respectively.
The Financials sector was also a significant contributor to the performance of both the index and the fund. With the largest sector representation in the index and the fund—an average weight of over 22%—the sector returned roughly 3.5% for the 12-month reporting period. Within this sector, the fund’s strongest contributions came from two multinational banking and financial services holding companies: JPMorgan Chase & Co. and Wells Fargo & Company. The fund’s holdings in the two companies returned over 10% and 6%, respectively.
The Energy sector was the largest detractor from the performance of both the fund and the index. While representing just over 10% of both the fund and the index on average, the sector’s return for both was roughly –28%. With oil prices falling sharply throughout the period—recovering only marginally in the last two weeks of August—oil companies were among the largest detractors to performance. Among the fund’s holdings, Exxon Mobil Corporation and Chevron Corporation were particularly detrimental, with those positions down more than 21% and 34%, respectively.
The Information Technology sector also detracted from both fund and index performance during the period. Constituting more than 12% of both the fund and the index, the sector fell more than 9% for the period. Within the sector, the fund’s largest detractors were large, multinational technology companies International Business Machines Corporation (IBM) and Microsoft Corporation, down more than 20% and 1%, respectively. Microsoft’s results were dampened by significant, one-time impairment and restructuring charges incurred during the period, and IBM struggled as it attempts to shift its business from on-premise hardware to cloud-based subscriptions.
As of 08/31/15:
| Statistics | |
| Number of Holdings | 352 |
| Weighted Average Market Cap (millions) | $111,139 |
| Price/Earnings Ratio (P/E) | 19.1 |
| Price/Book Ratio (P/B) | 2.0 |
| Portfolio Turnover Rate1 | 15% |
| Sector Weightings % of Investments | |
| Financials | 23.3% |
| Health Care | 12.9% |
| Information Technology | 12.3% |
| Consumer Staples | 12.1% |
| Energy | 9.1% |
| Industrials | 9.1% |
| Consumer Discretionary | 7.4% |
| Utilities | 5.9% |
| Telecommunication Services | 4.4% |
| Materials | 3.2% |
| Other | 0.3% |
| Total | 100.0% |
| Top Equity Holdings % of Net Assets2 | |
| Microsoft Corp. | 3.7% |
| Exxon Mobil Corp. | 3.3% |
| Johnson & Johnson | 2.7% |
| General Electric Co. | 2.6% |
| Wells Fargo & Co. | 2.6% |
| JPMorgan Chase & Co. | 2.5% |
| AT&T, Inc. | 2.1% |
| Pfizer, Inc. | 2.1% |
| The Procter & Gamble Co. | 2.0% |
| Verizon Communications, Inc. | 2.0% |
| Total | 25.6% |
Management views and portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of trading and management costs incurred by the fund.
Source of Sector Classification: S&P and MSCI.
| 1 | Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
| 2 | This list is not a recommendation of any security by the investment adviser. |
12Schwab U.S. Equity ETFs
Schwab U.S. Large-Cap Value ETF
Performance and Fund Facts as of 08/31/15
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.csimfunds.com.
December 11, 2009 – August 31, 2015
Performance of Hypothetical
$10,000 Investment1
Performance of Hypothetical
$10,000 Investment1
Average Annual Total Returns1
| Fund and Inception Date | 1 Year | 5 Years | Since Inception* |
| Fund: Schwab U.S. Large-Cap Value ETF (12/11/09) | |||
| Market Price Return2 | -3.62% | 13.86% | 11.61% |
| NAV Return2 | -3.71% | 13.84% | 11.60% |
| Dow Jones U.S. Large-Cap Value Total Stock Market Index | -3.69% | 14.00% | 11.77% |
| ETF Category: Morningstar Large Value3 | -2.02% | 14.42% | 12.37% |
Fund Expense Ratio4: 0.07%
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 cannot be invested in directly. Performance results less than one year are not annualized.
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 — Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). The Dow Jones U.S. Large-Cap Value Total Stock Market Index is a product of S&P Dow Jones Indices LLC and/or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Large-Cap Value ETF is not sponsored, endorsed, sold orpromoted 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.
| * | Inception (12/11/09) 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 U.S. Equity ETFs13
Schwab U.S. Mid-Cap ETF
The Schwab U.S. Mid-Cap ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Mid-Cap Total Stock Market Index (the index). The index includes the mid-cap portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The index includes the components ranked 501–1,000 by full market capitalization. The fund will generally give the same weight to a given security as does the index.
Market Highlights. U.S. stocks posted a marginally positive return for the 12-month reporting period, despite achieving multiple record highs during the period. Toward the end of the period, market volatility across the globe increased dramatically, with wide swings in daily gains and losses, triggered primarily by worries over slowing growth in China. Declining energy and metals prices also weighed on the market. The Federal Reserve concluded its bond-buying program in October and continued to ponder its plans for increasing interest rates throughout the period. As of the period-end, however, as a result of mixed economic signals, no action had been taken. Within the index, stocks in the Health Care and Consumer Discretionary sectors were among the better performers, while stocks in the Energy and Telecommunications Services sectors were the weakest.
Performance. During the 12-month reporting period ended August 31, 2015, the fund closely tracked the index. The fund’s market price return was 1.79% and its NAV return was 1.71%.
Contributors and Detractors. The Health Care sector contributed the most to both the index’s and the fund’s returns. Representing more than 10% of both the fund and the index, the sector returned over 22% for the reporting period. Within the sector, the fund’s strongest contributors were Incyte Corporation, a Delaware-based biopharmaceutical company that focuses on developing cancer-treating drugs, and BioMarin Pharmaceutical Inc., a California-based developer of biopharmaceuticals for serious diseases and medical conditions. The fund’s holdings in these two companies were up more than 114% and 81%, respectively.
Consumer Discretionary stocks also provided meaningful contributions to the returns of both the index and the fund. Representing an average weight of over 15% of the fund and the index, the sector returned more than 12%, reflecting consumer optimism over the period. Within the sector, the two strongest contributors to fund performance were ULTA Salon, Cosmetics & Fragrance, Inc., a chain of beauty superstores across the United States, and Mohawk Industries, Inc., a flooring manufacturer that services both residential and commercial markets. The fund’s holdings in these two companies were up more than 62% and 34%, respectively.
The Energy sector was the largest detractor from the performance of both the fund and the index. While representing just under 5% of both the fund and the index on average, the sector fell roughly 43%. With oil prices falling sharply throughout the period—recovering only marginally in the last two weeks of August—the fund’s holdings in companies relating to oil exploration and production were the largest detractors to performance. The two with the most impact were Whiting Petroleum Corporation, a Colorado-based independent oil exploration and production company, and Helmerich & Payne, Inc., which drills oil and natural gas wells for exploration and production companies across the country. The fund’s positions in these companies were down more than 79% and 41%, respectively.
The Industrials sector also detracted from both fund and index performance during the period. Constituting more than 17% of both the fund and the index, the sector fell more than 3% for the period. Within the sector, the fund’s two largest detractors were United Rentals, Inc., the largest equipment rental company in the world, and Trinity Industries, Inc., which owns a variety of businesses that provide products and services to the industrial, energy, transportation, and construction industries. The fund’s positions in these companies were down more than 41% and 43%, respectively.
As of 08/31/15:
| Statistics | |
| Number of Holdings | 498 |
| Weighted Average Market Cap (millions) | $7,074 |
| Price/Earnings Ratio (P/E) | 24.7 |
| Price/Book Ratio (P/B) | 2.3 |
| Portfolio Turnover Rate1 | 12% |
| Sector Weightings % of Investments | |
| Financials | 23.2% |
| Consumer Discretionary | 16.2% |
| Industrials | 16.2% |
| Information Technology | 13.6% |
| Health Care | 10.2% |
| Materials | 7.2% |
| Utilities | 4.7% |
| Energy | 3.7% |
| Consumer Staples | 2.7% |
| Telecommunication Services | 1.0% |
| Other | 1.3% |
| Total | 100.0% |
| Top Equity Holdings % of Net Assets2 | |
| BioMarin Pharmaceutical, Inc. | 0.8% |
| Incyte Corp. | 0.8% |
| Skyworks Solutions, Inc. | 0.7% |
| Endo International plc | 0.6% |
| Hospira, Inc. | 0.6% |
| WestRock Co. | 0.6% |
| Level 3 Communications, Inc. | 0.5% |
| Akamai Technologies, Inc. | 0.5% |
| Advance Auto Parts, Inc. | 0.5% |
| Vulcan Materials Co. | 0.5% |
| Total | 6.1% |
Management views and portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of trading and management costs incurred by the fund.
Source of Sector Classification: S&P and MSCI.
| 1 | Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
| 2 | This list is not a recommendation of any security by the investment adviser. |
14Schwab U.S. Equity ETFs
Schwab U.S. Mid-Cap ETF
Performance and Fund Facts as of 08/31/15
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.csimfunds.com.
January 13, 2011 – August 31, 2015
Performance of Hypothetical
$10,000 Investment1
Performance of Hypothetical
$10,000 Investment1
Average Annual Total Returns1
| Fund and Inception Date | 1 Year | 3 Years | Since Inception* |
| Fund: Schwab U.S. Mid-Cap ETF (1/13/11) | |||
| Market Price Return2 | 1.79% | 17.08% | 12.50% |
| NAV Return2 | 1.71% | 17.09% | 12.48% |
| Dow Jones U.S. Mid-Cap Total Stock Market Index | 1.72% | 17.13% | 12.55% |
| ETF Category: Morningstar Mid-Cap Blend3 | -2.14% | 15.76% | 11.42% |
Fund Expense Ratio4: 0.07%
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 cannot be invested in directly. Performance results less than one year are not annualized.
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 — Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). The Dow Jones U.S. Mid-Cap Total Stock Market Index is a product of S&P Dow Jones Indices LLC and/or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Mid-Cap ETF is not sponsored, endorsed, sold orpromoted 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.
| * | 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. |
Schwab U.S. Equity ETFs15
Schwab U.S. Small-Cap ETF
The Schwab U.S. Small-Cap ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Small-Cap Total Stock Market Index (the index). The index includes the small-cap portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The index includes the components ranked 751- 2,500 by full market capitalization. The fund will generally give the same weight to a given stock as does the index.
Market Highlights. U.S. stocks posted a marginally positive return for the 12-month reporting period, despite achieving multiple record highs during the period. Toward the end of the period, market volatility across the globe increased dramatically, with wide swings in daily gains and losses, triggered primarily by worries over slowing growth in China. Declining energy and metals prices also weighed on the market. The Federal Reserve concluded its bond-buying program in October and continued to ponder its plans for increasing interest rates throughout the period. As of the period-end, however, as a result of mixed economic signals, no action had been taken. Within the index, stocks in the Health Care and Consumer Staples sectors were among the better performers, while stocks in the Energy and Materials sectors were the weakest.
Performance. During the 12-month reporting period ended August 31, 2015, the fund closely tracked the index. The fund’s market price return was –0.41% and its NAV return was –0.54%. The index returned –0.61% during the same period.
Contributors and Detractors. The Health Care sector contributed the most to both the index’s and the fund’s returns. Representing more than 12% of both the fund and the index, the sector returned over 26% for the reporting period. Within the sector, the fund’s strongest contributor was Receptos, Inc., a biopharmaceutical company that was acquired by Celgene a few days before the close of the reporting period, helping to buoy its stock price. Anacor Pharmaceuticals, Inc., a biopharmaceutical company that in July achieved positive results in two late-state trials for a topical ointment to treat eczema, was another strong contributor. The fund’s holdings in the two companies were up 352% and 425%, respectively.
Consumer Discretionary stocks also provided meaningful contributions to the returns of the index and the fund. Representing an average weight of over 14% of the fund and the index, the sector returned more than 4%, reflecting relative consumer optimism over the period. Within the sector, the two strongest contributors to fund performance were Sketchers USA, Inc., a global leader in high-performance and lifestyle footwear, and Domino’s Pizza, Inc., the world leader in pizza delivery through a network of company- and franchise-owned stores in the United States and abroad . The fund’s holdings in these two companies were up 141% and 42%, respectively.
The Energy sector was the largest detractor from the performance of both the fund and the index. While representing just over 4% of both the fund and the index on average, the sector fell more than 50%. With oil prices falling sharply throughout the period—recovering only marginally in the last two weeks of August—the fund’s holdings in companies relating to oil exploration and production were the largest detractors from performance. The two with the most detrimental impact were Newfield Exploration Company and Energen Corporation, both independent crude oil and natural gas exploration and production companies headquartered in the Southeast. The fund’s positions in these companies were down more than 25% and 35%, respectively.
The Materials sector also detracted from both fund and index performance as a result of steeply falling commodity prices over the reporting period. Constituting just over 5% of both the fund and the index, the Materials sector fell nearly 20% for the period. Within the sector, the fund’s two largest detractors were United States Steel Corporation, an integrated steel producer with major production operations in the United States, Canada and Central Europe; and U.S. Silica Holdings, Inc., a leading producer of commercial silica serving a variety of industries but with significant operations in the oil and gas exploration industry. The fund’s positions in these companies were down more than 57% and 71%, respectively.
As of 08/31/15:
| Statistics | |
| Number of Holdings | 1,743 |
| Weighted Average Market Cap (millions) | $3,065 |
| Price/Earnings Ratio (P/E) | 37.7 |
| Price/Book Ratio (P/B) | 2.0 |
| Portfolio Turnover Rate1 | 9% |
| Sector Weightings % of Investments | |
| Financials | 24.5% |
| Information Technology | 16.1% |
| Industrials | 14.2% |
| Consumer Discretionary | 13.9% |
| Health Care | 13.5% |
| Materials | 4.6% |
| Energy | 3.4% |
| Consumer Staples | 3.3% |
| Utilities | 3.1% |
| Telecommunication Services | 0.5% |
| Other | 2.9% |
| Total | 100.0% |
| Top Equity Holdings % of Net Assets2 | |
| Palo Alto Networks, Inc. | 0.4% |
| Alaska Air Group, Inc. | 0.4% |
| Alkermes plc | 0.4% |
| Acuity Brands, Inc. | 0.3% |
| Qorvo, Inc. | 0.3% |
| The WhiteWave Foods Co. | 0.3% |
| Splunk, Inc. | 0.3% |
| E*TRADE Financial Corp. | 0.3% |
| Alnylam Pharmaceuticals, Inc. | 0.3% |
| Rite Aid Corp. | 0.3% |
| Total | 3.3% |
Management views and portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of trading and management costs incurred by the fund.
Source of Sector Classification: S&P and MSCI.
| 1 | Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
| 2 | This list is not a recommendation of any security by the investment adviser. |
16Schwab U.S. Equity ETFs
Schwab U.S. Small-Cap ETF
Performance and Fund Facts as of 08/31/15
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.csimfunds.com.
November 3, 2009 – August 31, 2015
Performance of Hypothetical
$10,000 Investment1
Performance of Hypothetical
$10,000 Investment1
Average Annual Total Returns1
| Fund and Inception Date | 1 Year | 5 Years | Since Inception* |
| Fund: Schwab U.S. Small-Cap ETF (11/3/09) | |||
| Market Price Return2 | -0.41% | 16.81% | 16.13% |
| NAV Return2 | -0.54% | 16.77% | 16.13% |
| Dow Jones U.S. Small-Cap Total Stock Market Index | -0.61% | 16.79% | 16.19% |
| ETF Category: Morningstar Small Blend3 | -1.17% | 16.12% | 15.13% |
Fund Expense Ratio4: 0.08%
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
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.
Small-company stocks are subject to greater volatility than many other asset classes.
Index ownership — Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). The Dow Jones U.S. Small-Cap Total Stock Market Index is a product of S&P Dow Jones Indices LLC and/or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Small-Cap ETF is not sponsored, endorsed, sold orpromoted 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.
| * | Inception (11/3/09) 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 U.S. Equity ETFs17
Schwab U.S. Dividend Equity ETF
The Schwab U.S. Dividend Equity ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100TM Index (the index). The 100-component index is a subset of the Dow Jones U.S. Broad Market Index, excluding REITs, master limited partnerships, preferred stocks, and convertibles. The index is modified market capitalization weighted. No single stock can represent more than 4.5% of the index, and no single sector can represent more than 25% of the index. The fund will generally give the same weight to a given stock as does the index.
Market Highlights. U.S. stocks posted a marginally positive return for the 12-month reporting period, despite achieving multiple record highs during the period. Toward the end of the period, market volatility across the globe increased dramatically, with wide swings in daily gains and losses, triggered primarily by worries over slowing growth in China. Declining energy and metals prices also weighed on the market. The Federal Reserve concluded its bond-buying program in October and continued to ponder its plans for increasing interest rates throughout the period. As of the period-end, however, as a result of mixed economic signals, no action had been taken. Within the index, stocks in the Health Care and Financials sectors were the strongest performers, while stocks in the Energy and Materials sectors were the weakest.
Performance. During the 12-month reporting period ended August 31, 2015, the fund closely tracked the index. The fund’s market price return was –3.50% and its NAV return was –3.47%. The index returned –3.40% during the same period.
Contributors and Detractors. The Consumer Discretionary sector contributed the most to the fund’s returns. Representing more than 9% of the fund and the index, the sector returned over 14% for the reporting period. Within the sector, two of the fund’s strongest contributors were The Home Depot and Target Corporation; the fund’s holdings in the two companies were up over 27% and 33%, respectively, reflecting consumer optimism over the period.
Health Care stocks also provided meaningful contributions to the returns of both the index and the fund. Representing an average weight of over 11% of the fund and the index, the sector returned more than 6% for the period. Within the sector, the fund’s strongest contributors were Pfizer Inc. and Eli Lilly and Company, two large, multinational pharmaceutical companies. For the 12-month reporting period, the fund’s holdings in the two companies were up more than 13% and 33%, respectively.
The Energy sector was the largest detractor from the performance of both the fund and the index. Representing roughly 12% of the fund and the index on average, the sector fell more than 28% for the reporting period. With oil prices falling sharply throughout the period—recovering only marginally in the last two weeks of August—oil companies were among the largest detractors to performance. Among the fund’s holdings, Chevron Corporation and Exxon Mobil Corporation were particularly detrimental, with those positions down more than 34% and 21%, respectively.
The Information Technology sector also detracted from both fund and index performance during the period. Constituting nearly 16% of both the fund and the index, the sector fell more than 5% for the period. Within the sector, the fund’s largest detractors were its positions in large, multinational technology companies Intel Corporation and Qualcomm Corporation, down more than 15% and 23%, respectively. Intel’s results were dampened by weaker-than-expected demand for business desktop PCs and lower-than-expected inventory levels across its PC supply chain; and Qualcomm struggled as its margins showed signs of trending downward, along with downward pricing pressures in emerging markets, where some of the company’s brightest opportunities lie.
As of 08/31/15:
| Statistics | |
| Number of Holdings | 101 |
| Weighted Average Market Cap (millions) | $131,509 |
| Price/Earnings Ratio (P/E) | 18.1 |
| Price/Book Ratio (P/B) | 3.6 |
| Portfolio Turnover Rate1 | 19% |
| Sector Weightings % of Investments | |
| Consumer Staples | 22.3% |
| Information Technology | 19.5% |
| Industrials | 14.2% |
| Health Care | 12.0% |
| Energy | 11.8% |
| Consumer Discretionary | 10.0% |
| Telecommunication Services | 4.7% |
| Materials | 3.0% |
| Financials | 2.0% |
| Utilities | 0.5% |
| Total | 100.0% |
| Top Equity Holdings % of Net Assets2 | |
| Verizon Communications, Inc. | 4.7% |
| Johnson & Johnson | 4.6% |
| Pfizer, Inc. | 4.6% |
| Microsoft Corp. | 4.5% |
| The Procter & Gamble Co. | 4.3% |
| Exxon Mobil Corp. | 4.3% |
| The Coca-Cola Co. | 3.8% |
| The Home Depot, Inc. | 3.8% |
| Chevron Corp. | 3.8% |
| PepsiCo, Inc. | 3.4% |
| Total | 41.8% |
Management views and portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of trading and management costs incurred by the fund.
Source of Sector Classification: S&P and MSCI.
| 1 | Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
| 2 | This list is not a recommendation of any security by the investment adviser. |
18Schwab U.S. Equity ETFs
Schwab U.S. Dividend Equity ETF
Performance and Fund Facts as of 08/31/15
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.csimfunds.com.
October 20, 2011 – August 31, 2015
Performance of Hypothetical
$10,000 Investment1
Performance of Hypothetical
$10,000 Investment1
Average Annual Total Returns1
| Fund and Inception Date | 1 Year | 3 Years | Since Inception* |
| Fund: Schwab U.S. Dividend Equity ETF (10/20/11) | |||
| Market Price Return2 | -3.50% | 11.57% | 13.37% |
| NAV Return2 | -3.47% | 11.62% | 13.38% |
| Dow Jones U.S. Dividend 100 Index | -3.40% | 11.74% | 13.53% |
| ETF Category: Morningstar Large Value3 | -2.02% | 12.76% | 14.20% |
Fund Expense Ratio4: 0.07%
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 cannot be invested in directly. Performance results less than one year are not annualized.
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 — Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). The Dow Jones U.S. Dividend 100 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Dividend Equity ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, 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.
| * | Inception (10/20/11) 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. |
Schwab U.S. Equity ETFs19
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you may incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares; and, (2) ongoing costs, including management fees and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning March 1, 2015 and held through August 31, 2015.
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.
| Expense Ratio1 (Annualized) | Beginning Account Value at 3/1/15 | Ending Account Value (Net of Expenses) at 8/31/15 | Expenses Paid During Period2 3/1/15–8/31/15 | |
| Schwab U.S. Broad Market ETF | ||||
| Actual Return | 0.04% | $1,000.00 | $ 946.40 | $ 0.20 |
| Hypothetical 5% Return | 0.04% | $1,000.00 | $ 1,025.00 | $ 0.20 |
| Schwab U.S. Large-Cap ETF | ||||
| Actual Return | 0.04% | $1,000.00 | $ 946.90 | $ 0.20 |
| Hypothetical 5% Return | 0.04% | $1,000.00 | $ 1,025.00 | $ 0.20 |
| Schwab U.S. Large-Cap Growth ETF | ||||
| Actual Return | 0.07% | $1,000.00 | $ 960.00 | $ 0.35 |
| Hypothetical 5% Return | 0.07% | $1,000.00 | $ 1,024.85 | $0.36 |
| Schwab U.S. Large-Cap Value ETF | ||||
| Actual Return | 0.07% | $1,000.00 | $ 934.10 | $ 0.34 |
| Hypothetical 5% Return | 0.07% | $1,000.00 | $ 1,024.85 | $0.36 |
| Schwab U.S. Mid-Cap ETF | ||||
| Actual Return | 0.07% | $1,000.00 | $ 957.50 | $ 0.35 |
| Hypothetical 5% Return | 0.07% | $1,000.00 | $ 1,024.85 | $0.36 |
| Schwab U.S. Small-Cap ETF | ||||
| Actual Return | 0.08% | $1,000.00 | $ 945.10 | $0.39 |
| Hypothetical 5% Return | 0.08% | $1,000.00 | $1,024.80 | $ 0.41 |
| Schwab U.S. Dividend Equity ETF | ||||
| Actual Return | 0.07% | $1,000.00 | $ 912.40 | $ 0.34 |
| Hypothetical 5% Return | 0.07% | $1,000.00 | $ 1,024.85 | $0.36 |
| 1 | Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights which covers a 12-month period. |
| 2 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 184 days of the period, and divided by the 365 days of the fiscal year. |
20Schwab U.S. Equity ETFs
Schwab U.S. Broad Market ETF
Financial Statements
Financial Highlights
| 9/1/14– 8/31/15 | 9/1/13– 8/31/14 | 9/1/12– 8/31/13 | 9/1/11– 8/31/12 | 9/1/10– 8/31/11 | ||
| Per-Share Data ($) | ||||||
| Net asset value at beginning of period | 48.75 | 39.79 | 33.84 | 29.47 | 25.11 | |
| Income (loss) from investment operations: | ||||||
| Net investment income (loss)1 | 0.99 | 0.85 | 0.80 | 0.65 | 0.56 | |
| Net realized and unrealized gains (losses) | (0.79) | 8.93 | 5.92 | 4.32 | 4.32 | |
| Total from investment operations | 0.20 | 9.78 | 6.72 | 4.97 | 4.88 | |
| Less distributions: | ||||||
| Distributions from net investment income | (0.93) | (0.82) | (0.77) | (0.60) | (0.52) | |
| Net asset value at end of period | 48.02 | 48.75 | 39.79 | 33.84 | 29.47 | |
| Total return (%) | 0.33 | 24.77 | 20.12 | 17.07 | 19.41 | |
| Ratios/Supplemental Data (%) | ||||||
| Ratios to average net assets: | ||||||
| Total expenses | 0.04 | 0.04 | 0.04 | 0.06 | 0.06 | |
| Net investment income (loss) | 1.98 | 1.90 | 2.15 | 2.06 | 1.83 | |
| Portfolio turnover rate2 | 3 | 4 | 4 | 5 | 3 | |
| Net assets, end of period ($ x 1,000) | 4,919,185 | 3,654,037 | 2,182,671 | 1,072,825 | 742,651 | |
1
Calculated based on the average shares outstanding during the period.
2
Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
See financial notes 21
Schwab U.S. Broad Market ETF
Condensed Portfolio Holdings as of August 31, 2015
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™ 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 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.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.6% | Common Stock | 4,269,255,785 | 4,899,860,956 |
| 0.0% | Rights | 21,491 | 21,491 |
| 0.6% | Other Investment Companies | 31,483,198 | 31,483,198 |
| 100.2% | Total Investments | 4,300,760,474 | 4,931,365,645 |
| (0.2%) | Other Assets and Liabilities, Net | (12,180,608) | |
| 100.0% | Net Assets | 4,919,185,037 | |
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Common Stock 99.6% of net assets | |||||
| Automobiles & Components 1.1% | |||||
| Other Securities | 1.1 | 55,911,609 | |||
| Banks 6.2% | |||||
| Bank of America Corp. | 2,382,218 | 0.8 | 38,925,442 | ||
| Citigroup, Inc. | 690,687 | 0.8 | 36,937,941 | ||
| JPMorgan Chase & Co. | 847,778 | 1.1 | 54,342,570 | ||
| Wells Fargo & Co. | 1,066,366 | 1.2 | 56,869,299 | ||
| Other Securities | 2.3 | 117,846,626 | |||
| 6.2 | 304,921,878 | ||||
| Capital Goods 7.4% | |||||
| 3M Co. | 144,194 | 0.4 | 20,495,735 | ||
| General Electric Co. | 2,288,075 | 1.2 | 56,790,021 | ||
| The Boeing Co. | 148,120 | 0.4 | 19,356,322 | ||
| Other Securities | 5.4 | 267,884,304 | |||
| 7.4 | 364,526,382 | ||||
| Commercial & Professional Services 1.1% | |||||
| Other Securities | 1.1 | 53,978,488 | |||
| Consumer Durables & Apparel 1.7% | |||||
| Other Securities | 1.7 | 85,025,166 | |||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Consumer Services 2.3% | |||||
| McDonald's Corp. | 220,009 | 0.4 | 20,905,255 | ||
| Starbucks Corp. | 341,234 | 0.4 | 18,668,912 | ||
| Other Securities | 1.5 | 73,856,889 | |||
| 2.3 | 113,431,056 | ||||
| Diversified Financials 4.7% | |||||
| Berkshire Hathaway, Inc., Class B * | 415,788 | 1.1 | 55,732,224 | ||
| The Charles Schwab Corp. (b) | 263,047 | 0.2 | 7,991,368 | ||
| Other Securities | 3.4 | 167,420,337 | |||
| 4.7 | 231,143,929 | ||||
| Energy 6.6% | |||||
| Chevron Corp. | 428,954 | 0.7 | 34,740,984 | ||
| Exxon Mobil Corp. | 955,962 | 1.5 | 71,926,581 | ||
| Schlumberger Ltd. | 288,280 | 0.5 | 22,304,224 | ||
| Other Securities | 3.9 | 197,008,449 | |||
| 6.6 | 325,980,238 | ||||
| Food & Staples Retailing 2.1% | |||||
| CVS Health Corp. | 258,064 | 0.5 | 26,425,754 | ||
| Wal-Mart Stores, Inc. | 358,863 | 0.5 | 23,229,202 | ||
| Other Securities | 1.1 | 52,831,037 | |||
| 2.1 | 102,485,993 | ||||
| Food, Beverage & Tobacco 4.7% | |||||
| Altria Group, Inc. | 451,453 | 0.5 | 24,188,852 | ||
| PepsiCo, Inc. | 334,920 | 0.6 | 31,124,116 | ||
| Philip Morris International, Inc. | 352,061 | 0.6 | 28,094,468 | ||
| The Coca-Cola Co. | 894,300 | 0.7 | 35,163,876 | ||
| Other Securities | 2.3 | 113,878,304 | |||
| 4.7 | 232,449,616 | ||||
| Health Care Equipment & Services 5.2% | |||||
| Medtronic plc | 324,062 | 0.5 | 23,426,442 | ||
| UnitedHealth Group, Inc. | 218,500 | 0.5 | 25,280,450 | ||
| Other Securities | 4.2 | 208,177,186 | |||
| 5.2 | 256,884,078 | ||||
| Household & Personal Products 1.7% | |||||
| The Procter & Gamble Co. | 615,779 | 0.9 | 43,517,102 | ||
| Other Securities | 0.8 | 37,509,755 | |||
| 1.7 | 81,026,857 | ||||
| Insurance 3.1% | |||||
| Other Securities | 3.1 | 154,235,125 | |||
| Materials 3.3% | |||||
| Other Securities | 3.3 | 160,311,172 | |||
| Media 3.3% | |||||
| Comcast Corp., Class A | 579,787 | 0.7 | 32,659,402 | ||
| The Walt Disney Co. | 354,784 | 0.7 | 36,145,394 | ||
| Other Securities | 1.9 | 91,677,850 | |||
| 3.3 | 160,482,646 | ||||
22 See financial notes
Schwab U.S. Broad Market ETF
Condensed Portfolio Holdings continued
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Pharmaceuticals, Biotechnology & Life Sciences 9.5% | |||||
| AbbVie, Inc. | 392,144 | 0.5 | 24,473,707 | ||
| Allergan plc * | 89,173 | 0.6 | 27,085,407 | ||
| Amgen, Inc. | 173,342 | 0.5 | 26,309,849 | ||
| Bristol-Myers Squibb Co. | 378,897 | 0.5 | 22,533,005 | ||
| Celgene Corp. * | 180,610 | 0.4 | 21,326,429 | ||
| Gilead Sciences, Inc. | 338,149 | 0.7 | 35,529,315 | ||
| Johnson & Johnson | 631,139 | 1.2 | 59,314,443 | ||
| Merck & Co., Inc. | 646,113 | 0.7 | 34,793,185 | ||
| Pfizer, Inc. | 1,406,576 | 0.9 | 45,319,879 | ||
| Other Securities | 3.5 | 170,594,504 | |||
| 9.5 | 467,279,723 | ||||
| Real Estate 4.0% | |||||
| Other Securities | 4.0 | 197,904,877 | |||
| Retailing 5.1% | |||||
| Amazon.com, Inc. * | 87,227 | 0.9 | 44,737,856 | ||
| The Home Depot, Inc. | 295,271 | 0.7 | 34,387,261 | ||
| Other Securities | 3.5 | 171,878,123 | |||
| 5.1 | 251,003,240 | ||||
| Semiconductors & Semiconductor Equipment 2.3% | |||||
| Intel Corp. | 1,077,002 | 0.6 | 30,737,637 | ||
| Other Securities | 1.7 | 81,333,728 | |||
| 2.3 | 112,071,365 | ||||
| Software & Services 10.8% | |||||
| Facebook, Inc., Class A * | 478,831 | 0.9 | 42,821,856 | ||
| Google, Inc., Class A * | 65,322 | 0.9 | 42,316,898 | ||
| Google, Inc., Class C * | 65,290 | 0.8 | 40,365,542 | ||
| International Business Machines Corp. | 209,616 | 0.6 | 31,000,110 | ||
| MasterCard, Inc., Class A | 219,055 | 0.4 | 20,234,110 | ||
| Microsoft Corp. | 1,847,193 | 1.6 | 80,389,839 | ||
| Oracle Corp. | 726,946 | 0.5 | 26,962,427 | ||
| Visa, Inc., Class A | 439,784 | 0.6 | 31,356,599 | ||
| Other Securities | 4.5 | 215,569,016 | |||
| 10.8 | 531,016,397 | ||||
| Technology Hardware & Equipment 6.0% | |||||
| Apple, Inc. | 1,314,390 | 3.0 | 148,210,616 | ||
| Cisco Systems, Inc. | 1,159,143 | 0.6 | 29,998,621 | ||
| QUALCOMM, Inc. | 369,050 | 0.4 | 20,880,849 | ||
| Other Securities | 2.0 | 96,982,901 | |||
| 6.0 | 296,072,987 | ||||
| Telecommunication Services 2.2% | |||||
| AT&T, Inc. | 1,397,267 | 0.9 | 46,389,264 | ||
| Verizon Communications, Inc. | 927,794 | 0.9 | 42,687,802 | ||
| Other Securities | 0.4 | 18,794,740 | |||
| 2.2 | 107,871,806 | ||||
| Transportation 2.2% | |||||
| Other Securities | 2.2 | 105,247,507 | |||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Utilities 3.0% | |||||
| Other Securities | 3.0 | 148,598,821 | |||
| Total Common Stock | |||||
| (Cost $4,269,255,785) | 4,899,860,956 | ||||
| Rights 0.0% of net assets | |||||
| Telecommunication Services 0.0% | |||||
| Other Securities | 0.0 | 21,491 | |||
| Total Rights | |||||
| (Cost $21,491) | 21,491 | ||||
| Other Investment Companies 0.6% of net assets | |||||
| Money Market Fund 0.1% | |||||
| Other Securities | 0.1 | 5,899,506 | |||
| Securities Lending Collateral 0.5% | |||||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (e) | 0.5 | 25,583,692 | |||
| Total Other Investment Companies | |||||
| (Cost $31,483,198) | 31,483,198 | ||||
End of Investments.
At 08/31/15, the tax basis cost of the fund's investments was $4,300,230,102 and the unrealized appreciation and depreciation were $805,877,326 and ($174,741,783), respectively, with a net unrealized appreciation of $631,135,543.
For the following notes, please refer to the complete schedule of portfolio holdings.
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $26,535,735. Non-cash collateral pledged to the fund for securities on loan amounted to $1,634,609. |
| (b) | Issuer is affiliated with the fund's adviser. |
| (c) | Illiquid security. At the period end, the value of these amounted to $21,491 or 0.0% of net assets. |
| (d) | Fair-valued by management in accordance with procedures approved by the Board of Trustees. |
| (e) | The rate shown is the 7-day yield. |
| CVR — | Contingent Value Rights |
| REIT — | Real Estate Investment Trust |
See financial notes 23
Schwab U.S. Broad Market ETF
Condensed Portfolio Holdings continued
In addition to the above, the fund held the following at 08/31/15:
| Number of Contracts | Contract Value ($) | Unrealized Appreciation ($) | ||||
| Futures Contracts | ||||||
| S&P 500 Index, e-mini, Long, expires 09/18/15 | 100 | 9,846,000 | 2,558 | |||
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2015 (see financial note 2(a) for additional information):
| Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
| Common Stock1 | $4,899,860,956 | $— | $— | $4,899,860,956 | |||||
| Rights 1 | — | — | 21,491 | 21,491 | |||||
| Other Investment Companies1 | 31,483,198 | — | — | 31,483,198 | |||||
| Total | $4,931,344,154 | $— | $21,491 | $4,931,365,645 | |||||
| Other Financial Instruments | |||||||||
| Futures Contracts2 | $2,558 | $— | $— | $2,558 |
| 1 | As categorized in the complete schedule of portfolio holdings. |
| 2 | Futures contracts are not included in Investments in the schedule of condensed portfolio holdings and are valued at unrealized appreciation or depreciation. |
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
| Investments in Securities | Balance as of August 31, 2014 | Realized Gains (Losses) | Change in Unrealized Appreciation (Depreciation) | Gross Purchases | Gross Sales | Gross Transfers in | Gross Transfers out | Balance as of August 31, 2015 | ||||||||
| Rights | $21,491 | $— | $— | $— | $— | $— | $— | $21,491 | ||||||||
| Total | $21,491 | $— | $— | $— | $— | $— | $— | $21,491 |
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, 2015.
24 See financial notes
Schwab U.S. Broad Market ETF
Statement of
Assets and Liabilities
As of August 31, 2015
| Assets | ||
| Investments in affiliated issuers, at value (cost $6,153,220) | $7,991,368 | |
| Investments in unaffiliated issuers, at value (cost $4,269,023,562) including securities on loan of $26,535,735 | 4,897,790,585 | |
| Collateral invested for securities on loan, at value (cost $25,583,692) | + | 25,583,692 |
| Total investments, at value (cost $4,300,760,474) | 4,931,365,645 | |
| Cash | 2,977,625 | |
| Deposit with broker for futures contracts | 460,000 | |
| Receivables: | ||
| Investments sold | 22,994 | |
| Fund shares sold | 36,203,947 | |
| Dividends | 9,470,116 | |
| Income from securities on loan | 62,517 | |
| Foreign tax reclaims | + | 2,127 |
| Total assets | 4,980,564,971 | |
| Liabilities | ||
| Collateral held for securities on loan | 25,583,692 | |
| Payables: | ||
| Investments bought | 35,656,750 | |
| Investment adviser fees | 36,992 | |
| Variation margin on futures contracts | + | 102,500 |
| Total liabilities | 61,379,934 | |
| Net Assets | ||
| Total assets | 4,980,564,971 | |
| Total liabilities | – | 61,379,934 |
| Net assets | $4,919,185,037 | |
| Net Assets by Source | ||
| Capital received from investors | 4,273,630,236 | |
| Net investment income not yet distributed | 15,537,648 | |
| Net realized capital losses | (590,576) | |
| Net unrealized capital appreciation | 630,607,729 | |
| Net Asset Value (NAV) | ||||
| Net Assets | ÷ | Shares Outstanding | = | NAV |
| $4,919,185,037 | 102,450,000 | $48.02 | ||
See financial notes 25
Schwab U.S. Broad Market ETF
Statement of
Operations
For the period September 1, 2014 through August 31, 2015
| Investment Income | ||
| Dividends received from affiliated issuer | $57,517 | |
| Dividends received from unaffiliated issuers (net of foreign withholding tax of $12,616) | 91,999,964 | |
| Interest | 20 | |
| Securities on loan | + | 931,745 |
| Total investment income | 92,989,246 | |
| Expenses | ||
| Investment adviser fees | 1,839,848 | |
| Total expenses | – | 1,839,848 |
| Net investment income | 91,149,398 | |
| Realized and Unrealized Gains (Losses) | ||
| Net realized gains on affiliated issuer | 287,068 | |
| Net realized gains on unaffiliated investments | 3,241,362 | |
| Net realized gains on in-kind redemptions | 131,258,184 | |
| Net realized gains on futures contracts | + | 629,760 |
| Net realized gains | 135,416,374 | |
| Net change in unrealized appreciation (depreciation) on affiliated issuer | 156,944 | |
| Net change in unrealized appreciation (depreciation) on unaffiliated investments | (225,223,923) | |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | (17,200) |
| Net change in unrealized appreciation (depreciation) | + | (225,084,179) |
| Net realized and unrealized losses | (89,667,805) | |
| Increase in net assets resulting from operations | $1,481,593 | |
26 See financial notes
Schwab U.S. Broad Market ETF
Statement of
Changes in Net Assets
For the current and prior report periods
| Operations | |||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||
| Net investment income | $91,149,398 | $56,700,065 | |
| Net realized gains | 135,416,374 | 44,443,785 | |
| Net change in unrealized appreciation (depreciation) | + | (225,084,179) | 525,734,296 |
| Increase in net assets resulting from operations | 1,481,593 | 626,878,146 | |
| Distributions to Shareholders | |||
| Distributions from net investment income | ($84,285,250) | ($53,302,780) | |
| Transactions in Fund Shares | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | VALUE | SHARES | VALUE | ||
| Shares sold | 33,800,000 | $1,665,831,746 | 22,550,000 | $1,006,196,263 | |
| Shares redeemed | + | (6,300,000) | (317,879,850) | (2,450,000) | (108,405,676) |
| Net transactions in fund shares | 27,500,000 | $1,347,951,896 | 20,100,000 | $897,790,587 | |
| Shares Outstanding and Net Assets | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | NET ASSETS | SHARES | NET ASSETS | ||
| Beginning of period | 74,950,000 | $3,654,036,798 | 54,850,000 | $2,182,670,845 | |
| Total increase | + | 27,500,000 | 1,265,148,239 | 20,100,000 | 1,471,365,953 |
| End of period | 102,450,000 | $4,919,185,037 | 74,950,000 | $3,654,036,798 | |
| Net investment income not yet distributed | $15,537,648 | $9,607,306 | |||
See financial notes 27
Schwab U.S. Large-Cap ETF
Financial Statements
Financial Highlights
| 9/1/14– 8/31/15 | 9/1/13– 8/31/14 | 9/1/12– 8/31/13 | 9/1/11– 8/31/12 | 9/1/10– 8/31/11 | ||
| Per-Share Data ($) | ||||||
| Net asset value at beginning of period | 47.99 | 39.06 | 33.49 | 29.11 | 24.98 | |
| Income (loss) from investment operations: | ||||||
| Net investment income (loss) | 1.01 1 | 0.83 | 0.77 | 0.64 | 0.53 | |
| Net realized and unrealized gains (losses) | (0.77) | 8.92 | 5.56 | 4.35 | 4.13 | |
| Total from investment operations | 0.24 | 9.75 | 6.33 | 4.99 | 4.66 | |
| Less distributions: | ||||||
| Distributions from net investment income | (0.93) | (0.82) | (0.76) | (0.61) | (0.53) | |
| Net asset value at end of period | 47.30 | 47.99 | 39.06 | 33.49 | 29.11 | |
| Total return (%) | 0.43 | 25.16 | 19.17 | 17.36 | 18.66 | |
| Ratios/Supplemental Data (%) | ||||||
| Ratios to average net assets: | ||||||
| Total expenses | 0.04 | 0.04 | 0.04 | 0.08 | 0.08 | |
| Net investment income (loss) | 2.04 | 1.95 | 2.18 | 2.10 | 1.88 | |
| Portfolio turnover rate2 | 4 | 5 | 5 | 4 | 5 | |
| Net assets, end of period ($ x 1,000) | 4,329,918 | 3,191,644 | 1,781,282 | 890,808 | 615,781 | |
1
Calculated based on the average shares outstanding during the period.
2
Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
28 See financial notes
Schwab U.S. Large-Cap ETF
Condensed Portfolio Holdings as of August 31, 2015
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™ 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 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.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.6% | Common Stock | 3,843,160,621 | 4,313,972,672 |
| 0.3% | Other Investment Companies | 12,914,422 | 12,914,422 |
| 99.9% | Total Investments | 3,856,075,043 | 4,326,887,094 |
| 0.1% | Other Assets and Liabilities, Net | 3,031,068 | |
| 100.0% | Net Assets | 4,329,918,162 | |
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Common Stock 99.6% of net assets | |||||
| Automobiles & Components 1.1% | |||||
| Other Securities | 1.1 | 49,056,203 | |||
| Banks 5.9% | |||||
| Bank of America Corp. | 2,392,294 | 0.9 | 39,090,084 | ||
| Citigroup, Inc. | 693,418 | 0.9 | 37,083,995 | ||
| JPMorgan Chase & Co. | 843,890 | 1.2 | 54,093,349 | ||
| Wells Fargo & Co. | 1,070,833 | 1.3 | 57,107,524 | ||
| Other Securities | 1.6 | 67,936,613 | |||
| 5.9 | 255,311,565 | ||||
| Capital Goods 7.2% | |||||
| 3M Co. | 143,751 | 0.5 | 20,432,767 | ||
| General Electric Co. | 2,293,483 | 1.3 | 56,924,248 | ||
| The Boeing Co. | 145,804 | 0.4 | 19,053,667 | ||
| Other Securities | 5.0 | 214,379,845 | |||
| 7.2 | 310,790,527 | ||||
| Commercial & Professional Services 0.8% | |||||
| Other Securities | 0.8 | 36,318,176 | |||
| Consumer Durables & Apparel 1.6% | |||||
| Other Securities | 1.6 | 69,559,668 | |||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Consumer Services 2.1% | |||||
| McDonald's Corp. | 219,217 | 0.5 | 20,829,999 | ||
| Starbucks Corp. | 345,569 | 0.4 | 18,906,080 | ||
| Other Securities | 1.2 | 49,157,782 | |||
| 2.1 | 88,893,861 | ||||
| Diversified Financials 5.0% | |||||
| Berkshire Hathaway, Inc., Class B * | 415,706 | 1.3 | 55,721,232 | ||
| The Charles Schwab Corp. (b) | 266,524 | 0.2 | 8,096,999 | ||
| Other Securities | 3.5 | 150,632,170 | |||
| 5.0 | 214,450,401 | ||||
| Energy 7.0% | |||||
| Chevron Corp. | 429,861 | 0.8 | 34,814,442 | ||
| Exxon Mobil Corp. | 952,290 | 1.7 | 71,650,300 | ||
| Schlumberger Ltd. | 288,775 | 0.5 | 22,342,522 | ||
| Other Securities | 4.0 | 175,625,486 | |||
| 7.0 | 304,432,750 | ||||
| Food & Staples Retailing 2.3% | |||||
| CVS Health Corp. | 257,125 | 0.6 | 26,329,600 | ||
| Wal-Mart Stores, Inc. | 361,151 | 0.5 | 23,377,304 | ||
| Other Securities | 1.2 | 47,553,070 | |||
| 2.3 | 97,259,974 | ||||
| Food, Beverage & Tobacco 5.1% | |||||
| Altria Group, Inc. | 454,595 | 0.6 | 24,357,200 | ||
| PepsiCo, Inc. | 336,501 | 0.7 | 31,271,038 | ||
| Philip Morris International, Inc. | 353,758 | 0.7 | 28,229,888 | ||
| The Coca-Cola Co. | 897,792 | 0.8 | 35,301,182 | ||
| Other Securities | 2.3 | 101,178,697 | |||
| 5.1 | 220,338,005 | ||||
| Health Care Equipment & Services 5.0% | |||||
| Medtronic plc | 322,984 | 0.5 | 23,348,513 | ||
| UnitedHealth Group, Inc. | 216,691 | 0.6 | 25,071,149 | ||
| Other Securities | 3.9 | 168,112,703 | |||
| 5.0 | 216,532,365 | ||||
| Household & Personal Products 1.8% | |||||
| The Procter & Gamble Co. | 618,730 | 1.0 | 43,725,649 | ||
| Other Securities | 0.8 | 35,059,994 | |||
| 1.8 | 78,785,643 | ||||
| Insurance 3.1% | |||||
| Other Securities | 3.1 | 133,971,175 | |||
| Materials 3.0% | |||||
| Other Securities | 3.0 | 131,706,140 | |||
| Media 3.4% | |||||
| Comcast Corp., Class A | 574,175 | 0.7 | 32,343,278 | ||
| The Walt Disney Co. | 356,323 | 0.8 | 36,302,187 | ||
| Other Securities | 1.9 | 80,527,565 | |||
| 3.4 | 149,173,030 | ||||
See financial notes 29
Schwab U.S. Large-Cap ETF
Condensed Portfolio Holdings continued
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Pharmaceuticals, Biotechnology & Life Sciences 9.9% | |||||
| AbbVie, Inc. | 389,880 | 0.6 | 24,332,411 | ||
| Allergan plc * | 89,340 | 0.6 | 27,136,132 | ||
| Amgen, Inc. | 172,735 | 0.6 | 26,217,718 | ||
| Bristol-Myers Squibb Co. | 378,212 | 0.5 | 22,492,268 | ||
| Celgene Corp. * | 181,740 | 0.5 | 21,459,859 | ||
| Eli Lilly & Co. | 223,120 | 0.4 | 18,373,932 | ||
| Gilead Sciences, Inc. | 334,470 | 0.8 | 35,142,763 | ||
| Johnson & Johnson | 631,165 | 1.4 | 59,316,887 | ||
| Merck & Co., Inc. | 643,817 | 0.8 | 34,669,545 | ||
| Pfizer, Inc. | 1,409,674 | 1.0 | 45,419,696 | ||
| Other Securities | 2.7 | 112,687,256 | |||
| 9.9 | 427,248,467 | ||||
| Real Estate 3.2% | |||||
| Other Securities | 3.2 | 137,663,576 | |||
| Retailing 5.2% | |||||
| Amazon.com, Inc. * | 86,946 | 1.0 | 44,593,734 | ||
| The Home Depot, Inc. | 296,191 | 0.8 | 34,494,404 | ||
| Other Securities | 3.4 | 147,030,581 | |||
| 5.2 | 226,118,719 | ||||
| Semiconductors & Semiconductor Equipment 2.2% | |||||
| Intel Corp. | 1,083,070 | 0.7 | 30,910,818 | ||
| Other Securities | 1.5 | 63,385,853 | |||
| 2.2 | 94,296,671 | ||||
| Software & Services 11.1% | |||||
| Facebook, Inc., Class A * | 479,366 | 1.0 | 42,869,701 | ||
| Google, Inc., Class A * | 65,146 | 1.0 | 42,202,882 | ||
| Google, Inc., Class C * | 65,535 | 0.9 | 40,517,014 | ||
| International Business Machines Corp. | 207,841 | 0.7 | 30,737,605 | ||
| MasterCard, Inc., Class A | 219,964 | 0.5 | 20,318,075 | ||
| Microsoft Corp. | 1,840,558 | 1.8 | 80,101,084 | ||
| Oracle Corp. | 727,669 | 0.6 | 26,989,243 | ||
| Visa, Inc., Class A | 440,252 | 0.7 | 31,389,968 | ||
| Other Securities | 3.9 | 164,312,246 | |||
| 11.1 | 479,437,818 | ||||
| Technology Hardware & Equipment 6.1% | |||||
| Apple, Inc. | 1,313,390 | 3.4 | 148,097,856 | ||
| Cisco Systems, Inc. | 1,160,016 | 0.7 | 30,021,214 | ||
| QUALCOMM, Inc. | 369,507 | 0.5 | 20,906,706 | ||
| Other Securities | 1.5 | 67,081,098 | |||
| 6.1 | 266,106,874 | ||||
| Telecommunication Services 2.4% | |||||
| AT&T, Inc. | 1,401,563 | 1.1 | 46,531,892 | ||
| Verizon Communications, Inc. | 928,545 | 1.0 | 42,722,356 | ||
| Other Securities | 0.3 | 15,649,169 | |||
| 2.4 | 104,903,417 | ||||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Transportation 2.1% | |||||
| Other Securities | 2.1 | 90,988,473 | |||
| Utilities 3.0% | |||||
| Other Securities | 3.0 | 130,629,174 | |||
| Total Common Stock | |||||
| (Cost $3,843,160,621) | 4,313,972,672 | ||||
| Other Investment Companies 0.3% of net assets | |||||
| Money Market Fund 0.1% | |||||
| Other Securities | 0.1 | 2,966,213 | |||
| Securities Lending Collateral 0.2% | |||||
| Other Securities | 0.2 | 9,948,209 | |||
| Total Other Investment Companies | |||||
| (Cost $12,914,422) | 12,914,422 | ||||
End of Investments.
At 08/31/15, the tax basis cost of the fund's investments was $3,855,885,866 and the unrealized appreciation and depreciation were $622,683,517 and ($151,682,289), respectively, with a net unrealized appreciation of $471,001,228.
For the following notes, please refer to the complete schedule of portfolio holdings.
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $10,546,024. Non-cash collateral pledged to the fund for securities on loan amounted to $705,622. |
| (b) | Issuer is affiliated with the fund's adviser. |
| (c) | The rate shown is the 7-day yield. |
| REIT — | Real Estate Investment Trust |
In addition to the above, the fund held the following at 08/31/15:
| Number of Contracts | Contract Value ($) | Unrealized Depreciation ($) | ||||
| Futures Contracts | ||||||
| S&P 500 Index, e-mini, Long, expires 09/18/15 | 85 | 8,369,100 | (165,126) | |||
30 See financial notes
Schwab U.S. Large-Cap ETF
Condensed Portfolio Holdings continued
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2015 (see financial note 2(a) for additional information):
Assets Valuation Input
| Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
| Common Stock1 | $4,313,972,672 | $— | $— | $4,313,972,672 | |||||
| Other Investment Companies1 | 12,914,422 | — | — | 12,914,422 | |||||
| Total | $4,326,887,094 | $— | $— | $4,326,887,094 | |||||
| Liabilities Valuation Input | |||||||||
| Other Financial Instruments | |||||||||
| Futures Contracts2 | ($165,126) | $— | $— | ($165,126) |
| 1 | As categorized in the complete schedule of portfolio holdings. |
| 2 | Futures contracts are not included in Investments in the schedule of condensed portfolio holdings and are valued at unrealized appreciation or depreciation. |
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, 2015.
See financial notes 31
Schwab U.S. Large-Cap ETF
Statement of
Assets and Liabilities
As of August 31, 2015
| Assets | ||
| Investments in affiliated issuers, at value (cost $6,500,597) | $8,096,999 | |
| Investments in unaffiliated issuers, at value (cost $3,839,626,237) including securities on loan of $10,546,024 | 4,308,841,886 | |
| Collateral invested for securities on loan, at value (cost $9,948,209) | + | 9,948,209 |
| Total investments, at value (cost $3,856,075,043) | 4,326,887,094 | |
| Cash | 3,090,833 | |
| Deposit with broker for futures contracts | 391,000 | |
| Receivables: | ||
| Investments sold | 11,575 | |
| Fund shares sold | 26,170,533 | |
| Dividends | 9,228,628 | |
| Income from securities on loan | 18,730 | |
| Foreign tax reclaims | + | 2,374 |
| Total assets | 4,365,800,767 | |
| Liabilities | ||
| Collateral held for securities on loan | 9,948,209 | |
| Payables: | ||
| Investments bought | 25,814,487 | |
| Investment adviser fees | 32,784 | |
| Variation margin on futures contracts | + | 87,125 |
| Total liabilities | 35,882,605 | |
| Net Assets | ||
| Total assets | 4,365,800,767 | |
| Total liabilities | – | 35,882,605 |
| Net assets | $4,329,918,162 | |
| Net Assets by Source | ||
| Capital received from investors | 3,848,871,169 | |
| Net investment income not yet distributed | 15,543,069 | |
| Net realized capital losses | (5,143,001) | |
| Net unrealized capital appreciation | 470,646,925 | |
| Net Asset Value (NAV) | ||||
| Net Assets | ÷ | Shares Outstanding | = | NAV |
| $4,329,918,162 | 91,550,000 | $47.30 | ||
32 See financial notes
Schwab U.S. Large-Cap ETF
Statement of
Operations
For the period September 1, 2014 through August 31, 2015
| Investment Income | ||
| Dividends received from affiliated issuer | $56,377 | |
| Dividends received from unaffiliated issuers (net of foreign withholding tax of $10,297) | 83,120,742 | |
| Interest | 37 | |
| Securities on loan | + | 241,312 |
| Total investment income | 83,418,468 | |
| Expenses | ||
| Investment adviser fees | 1,600,825 | |
| Total expenses | – | 1,600,825 |
| Net investment income | 81,817,643 | |
| Realized and Unrealized Gains (Losses) | ||
| Net realized gains on affiliated issuer | 347,126 | |
| Net realized losses on unaffiliated investments | (1,131,094) | |
| Net realized gains on in-kind redemptions | 139,163,818 | |
| Net realized gains on futures contracts | + | 372,478 |
| Net realized gains | 138,752,328 | |
| Net change in unrealized appreciation (depreciation) on affiliated issuer | 32,834 | |
| Net change in unrealized appreciation (depreciation) on unaffiliated investments | (244,302,912) | |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | (170,988) |
| Net change in unrealized appreciation (depreciation) | + | (244,441,066) |
| Net realized and unrealized losses | (105,688,738) | |
| Decrease in net assets resulting from operations | ($23,871,095) | |
See financial notes 33
Schwab U.S. Large-Cap ETF
Statement of
Changes in Net Assets
For the current and prior report periods
| Operations | |||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||
| Net investment income | $81,817,643 | $48,304,376 | |
| Net realized gains | 138,752,328 | 25,664,180 | |
| Net change in unrealized appreciation (depreciation) | + | (244,441,066) | 451,922,393 |
| Increase (decrease) in net assets resulting from operations | (23,871,095) | 525,890,949 | |
| Distributions to Shareholders | |||
| Distributions from net investment income | ($74,777,650) | ($44,577,680) | |
| Transactions in Fund Shares | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | VALUE | SHARES | VALUE | ||
| Shares sold | 32,300,000 | $1,580,631,648 | 22,650,000 | $1,002,867,160 | |
| Shares redeemed | + | (7,250,000) | (343,709,219) | (1,750,000) | (73,817,744) |
| Net transactions in fund shares | 25,050,000 | $1,236,922,429 | 20,900,000 | $929,049,416 | |
| Shares Outstanding and Net Assets | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | NET ASSETS | SHARES | NET ASSETS | ||
| Beginning of period | 66,500,000 | $3,191,644,478 | 45,600,000 | $1,781,281,793 | |
| Total increase | + | 25,050,000 | 1,138,273,684 | 20,900,000 | 1,410,362,685 |
| End of period | 91,550,000 | $4,329,918,162 | 66,500,000 | $3,191,644,478 | |
| Net investment income not yet distributed | $15,543,069 | $9,252,242 | |||
34 See financial notes
Schwab U.S. Large-Cap Growth ETF
Financial Statements
Financial Highlights
| 9/1/14– 8/31/15 | 9/1/13– 8/31/14 | 9/1/12– 8/31/13 | 9/1/11– 8/31/12 | 9/1/10– 8/31/11 | ||
| Per-Share Data ($) | ||||||
| Net asset value at beginning of period | 50.11 | 39.60 | 34.05 | 29.44 | 24.21 | |
| Income (loss) from investment operations: | ||||||
| Net investment income (loss) | 0.66 1 | 0.56 | 0.55 | 0.36 | 0.27 | |
| Net realized and unrealized gains (losses) | 1.79 | 10.50 | 5.52 | 4.59 | 5.20 | |
| Total from investment operations | 2.45 | 11.06 | 6.07 | 4.95 | 5.47 | |
| Less distributions: | ||||||
| Distributions from net investment income | (0.63) | (0.55) | (0.52) | (0.34) | (0.24) | |
| Net asset value at end of period | 51.93 | 50.11 | 39.60 | 34.05 | 29.44 | |
| Total return (%) | 4.87 | 28.11 | 18.02 | 16.96 | 22.57 | |
| Ratios/Supplemental Data (%) | ||||||
| Ratios to average net assets: | ||||||
| Total expenses | 0.07 | 0.07 | 0.07 | 0.13 | 0.13 | |
| Net investment income (loss) | 1.25 | 1.29 | 1.55 | 1.17 | 0.93 | |
| Portfolio turnover rate2 | 10 | 7 | 11 | 8 | 10 | |
| Net assets, end of period ($ x 1,000) | 2,246,101 | 1,485,805 | 827,613 | 475,062 | 309,155 | |
1
Calculated based on the average shares outstanding during the period.
2
Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
See financial notes 35
Schwab U.S. Large-Cap Growth ETF
Condensed Portfolio Holdings as of August 31, 2015
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™ 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 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.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.7% | Common Stock | 1,921,151,032 | 2,238,699,341 |
| 0.4% | Other Investment Companies | 8,760,129 | 8,719,193 |
| 100.1% | Total Investments | 1,929,911,161 | 2,247,418,534 |
| (0.1%) | Other Assets and Liabilities, Net | (1,317,446) | |
| 100.0% | Net Assets | 2,246,101,088 | |
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Common Stock 99.7% of net assets | |||||
| Automobiles & Components 0.5% | |||||
| Other Securities | 0.5 | 11,772,777 | |||
| Banks 0.1% | |||||
| Other Securities | 0.1 | 3,288,679 | |||
| Capital Goods 6.6% | |||||
| 3M Co. | 150,046 | 0.9 | 21,327,538 | ||
| Caterpillar, Inc. | 142,345 | 0.5 | 10,880,852 | ||
| Danaher Corp. | 144,575 | 0.6 | 12,580,917 | ||
| The Boeing Co. | 151,566 | 0.9 | 19,806,645 | ||
| Other Securities | 3.7 | 82,551,042 | |||
| 6.6 | 147,146,994 | ||||
| Commercial & Professional Services 1.0% | |||||
| Other Securities | 1.0 | 23,192,298 | |||
| Consumer Durables & Apparel 2.5% | |||||
| NIKE, Inc., Class B | 164,147 | 0.8 | 18,343,427 | ||
| Other Securities | 1.7 | 38,228,452 | |||
| 2.5 | 56,571,879 | ||||
| Consumer Services 2.5% | |||||
| Starbucks Corp. | 354,553 | 0.9 | 19,397,595 | ||
| Other Securities | 1.6 | 35,911,235 | |||
| 2.5 | 55,308,830 | ||||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Diversified Financials 6.6% | |||||
| American Express Co. | 208,700 | 0.7 | 16,011,464 | ||
| Berkshire Hathaway, Inc., Class B * | 432,260 | 2.6 | 57,940,130 | ||
| Morgan Stanley | 359,153 | 0.6 | 12,372,821 | ||
| The Charles Schwab Corp. (b) | 273,886 | 0.4 | 8,320,657 | ||
| Other Securities | 2.3 | 54,622,331 | |||
| 6.6 | 149,267,403 | ||||
| Energy 5.0% | |||||
| EOG Resources, Inc. | 129,601 | 0.5 | 10,149,054 | ||
| Schlumberger Ltd. | 300,691 | 1.0 | 23,264,463 | ||
| Other Securities | 3.5 | 78,046,566 | |||
| 5.0 | 111,460,083 | ||||
| Food & Staples Retailing 2.8% | |||||
| Costco Wholesale Corp. | 103,361 | 0.6 | 14,475,708 | ||
| CVS Health Corp. | 266,648 | 1.2 | 27,304,755 | ||
| Walgreens Boots Alliance, Inc. | 206,821 | 0.8 | 17,900,357 | ||
| Other Securities | 0.2 | 2,943,683 | |||
| 2.8 | 62,624,503 | ||||
| Food, Beverage & Tobacco 2.4% | |||||
| PepsiCo, Inc. | 351,703 | 1.5 | 32,683,760 | ||
| Other Securities | 0.9 | 21,361,331 | |||
| 2.4 | 54,045,091 | ||||
| Health Care Equipment & Services 7.3% | |||||
| Express Scripts Holding Co. * | 160,508 | 0.6 | 13,418,469 | ||
| McKesson Corp. | 54,497 | 0.5 | 10,767,517 | ||
| Medtronic plc | 336,806 | 1.1 | 24,347,706 | ||
| UnitedHealth Group, Inc. | 226,742 | 1.2 | 26,234,049 | ||
| Other Securities | 3.9 | 88,880,697 | |||
| 7.3 | 163,648,438 | ||||
| Household & Personal Products 1.0% | |||||
| Colgate-Palmolive Co. | 203,548 | 0.6 | 12,784,850 | ||
| Other Securities | 0.4 | 9,653,916 | |||
| 1.0 | 22,438,766 | ||||
| Insurance 0.6% | |||||
| Other Securities | 0.6 | 12,765,197 | |||
| Materials 3.0% | |||||
| Monsanto Co. | 112,724 | 0.5 | 11,007,498 | ||
| Other Securities | 2.5 | 55,477,805 | |||
| 3.0 | 66,485,303 | ||||
| Media 5.1% | |||||
| Comcast Corp., Class A | 593,879 | 1.5 | 33,453,204 | ||
| The Walt Disney Co. | 369,780 | 1.7 | 37,673,186 | ||
| Time Warner Cable, Inc. | 66,674 | 0.6 | 12,402,698 | ||
| Other Securities | 1.3 | 31,185,858 | |||
| 5.1 | 114,714,946 | ||||
| Pharmaceuticals, Biotechnology & Life Sciences 9.6% | |||||
| Allergan plc * | 92,840 | 1.3 | 28,199,222 | ||
| Amgen, Inc. | 179,931 | 1.2 | 27,309,927 | ||
36 See financial notes
Schwab U.S. Large-Cap Growth ETF
Condensed Portfolio Holdings continued
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Biogen, Inc. * | 55,684 | 0.7 | 16,554,853 | ||
| Celgene Corp. * | 187,797 | 1.0 | 22,175,070 | ||
| Gilead Sciences, Inc. | 347,827 | 1.6 | 36,546,183 | ||
| Thermo Fisher Scientific, Inc. | 94,696 | 0.5 | 11,872,038 | ||
| Other Securities | 3.3 | 72,339,944 | |||
| 9.6 | 214,997,237 | ||||
| Real Estate 3.5% | |||||
| Simon Property Group, Inc. | 73,064 | 0.6 | 13,101,836 | ||
| Other Securities | 2.9 | 66,617,591 | |||
| 3.5 | 79,719,427 | ||||
| Retailing 9.0% | |||||
| Amazon.com, Inc. * | 90,362 | 2.1 | 46,345,766 | ||
| Lowe's Cos., Inc. | 220,206 | 0.7 | 15,231,649 | ||
| Netflix, Inc. * | 99,893 | 0.5 | 11,490,692 | ||
| The Home Depot, Inc. | 307,004 | 1.6 | 35,753,686 | ||
| The Priceline Group, Inc. * | 12,215 | 0.7 | 15,252,138 | ||
| The TJX Cos., Inc. | 159,587 | 0.5 | 11,222,158 | ||
| Other Securities | 2.9 | 66,670,454 | |||
| 9.0 | 201,966,543 | ||||
| Semiconductors & Semiconductor Equipment 1.6% | |||||
| Other Securities | 1.6 | 35,745,967 | |||
| Software & Services 15.8% | |||||
| Accenture plc, Class A | 147,203 | 0.6 | 13,876,827 | ||
| Facebook, Inc., Class A * | 498,427 | 2.0 | 44,574,327 | ||
| Google, Inc., Class A * | 67,845 | 2.0 | 43,951,348 | ||
| Google, Inc., Class C * | 67,789 | 1.9 | 41,910,549 | ||
| MasterCard, Inc., Class A | 228,640 | 0.9 | 21,119,477 | ||
| Oracle Corp. | 753,899 | 1.2 | 27,962,114 | ||
| salesforce.com, Inc. * | 144,312 | 0.4 | 10,009,480 | ||
| Visa, Inc., Class A | 456,870 | 1.5 | 32,574,831 | ||
| Other Securities | 5.3 | 118,827,625 | |||
| 15.8 | 354,806,578 | ||||
| Technology Hardware & Equipment 9.1% | |||||
| Apple, Inc. | 1,364,785 | 6.9 | 153,893,157 | ||
| EMC Corp. | 458,598 | 0.5 | 11,405,332 | ||
| QUALCOMM, Inc. | 385,071 | 1.0 | 21,787,317 | ||
| Other Securities | 0.7 | 17,642,650 | |||
| 9.1 | 204,728,456 | ||||
| Telecommunication Services 0.4% | |||||
| Other Securities | 0.4 | 9,286,845 | |||
| Transportation 3.6% | |||||
| Union Pacific Corp. | 206,543 | 0.8 | 17,708,997 | ||
| United Parcel Service, Inc., Class B | 163,937 | 0.7 | 16,008,448 | ||
| Other Securities | 2.1 | 46,523,255 | |||
| 3.6 | 80,240,700 | ||||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Utilities 0.1% | |||||
| Other Securities | 0.1 | 2,476,401 | |||
| Total Common Stock | |||||
| (Cost $1,921,151,032) | 2,238,699,341 | ||||
| Other Investment Companies 0.4% of net assets | |||||
| Equity Fund 0.1% | |||||
| Other Securities | 0.1 | 1,916,000 | |||
| Money Market Fund 0.0% | |||||
| Other Securities | 0.0 | 204,594 | |||
| Securities Lending Collateral 0.3% | |||||
| Other Securities | 0.3 | 6,598,599 | |||
| Total Other Investment Companies | |||||
| (Cost $8,760,129) | 8,719,193 | ||||
End of Investments.
At 08/31/15, the tax basis cost of the fund's investments was $1,929,937,747 and the unrealized appreciation and depreciation were $380,506,676 and ($63,025,889), respectively, with a net unrealized appreciation of $317,480,787.
For the following notes, please refer to the complete schedule of portfolio holdings.
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $6,850,810. Non-cash collateral pledged to the fund for securities on loan amounted to $331,973. |
| (b) | Issuer is affiliated with the fund's adviser. |
| (c) | The rate shown is the 7-day yield. |
| ETF — | Exchange Traded Fund |
In addition to the above, the fund held the following at 08/31/15:
| Number of Contracts | Contract Value ($) | Unrealized Depreciation ($) | ||||
| Futures Contracts | ||||||
| S&P 500 Index, e-mini, Long, expires 09/18/15 | 30 | 2,953,800 | (25,633) | |||
See financial notes 37
Schwab U.S. Large-Cap Growth ETF
Condensed Portfolio Holdings continued
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2015 (see financial note 2(a) for additional information):
Assets Valuation Input
| Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
| Common Stock1 | $2,238,699,341 | $— | $— | $2,238,699,341 | |||||
| Other Investment Companies1 | 8,719,193 | — | — | 8,719,193 | |||||
| Total | $2,247,418,534 | $— | $— | $2,247,418,534 | |||||
| Liabilities Valuation Input | |||||||||
| Other Financial Instruments | |||||||||
| Futures Contracts2 | ($25,633) | $— | $— | ($25,633) |
| 1 | As categorized in the complete schedule of portfolio holdings. |
| 2 | Futures contracts are not included in Investments in the schedule of condensed portfolio holdings and are valued at unrealized appreciation or depreciation. |
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, 2015.
38 See financial notes
Schwab U.S. Large-Cap Growth ETF
Statement of
Assets and Liabilities
As of August 31, 2015
| Assets | ||
| Investments in affiliated issuers, at value (cost $6,731,675) | $8,320,657 | |
| Investments in unaffiliated issuers, at value (cost $1,916,580,887) including securities on loan of $6,850,810 | 2,232,499,278 | |
| Collateral invested for securities on loan, at value (cost $6,598,599) | + | 6,598,599 |
| Total investments, at value (cost $1,929,911,161) | 2,247,418,534 | |
| Cash | 3,085,363 | |
| Deposit with broker for futures contracts | 138,000 | |
| Receivables: | ||
| Investments sold | 14,246 | |
| Fund shares sold | 15,668,061 | |
| Dividends | 2,010,775 | |
| Income from securities on loan | + | 6,993 |
| Total assets | 2,268,341,972 | |
| Liabilities | ||
| Collateral held for securities on loan | 6,598,599 | |
| Payables: | ||
| Investments bought | 10,388,696 | |
| Investment adviser fees | 29,541 | |
| Fund shares redeemed | 5,193,298 | |
| Variation margin on futures contracts | + | 30,750 |
| Total liabilities | 22,240,884 | |
| Net Assets | ||
| Total assets | 2,268,341,972 | |
| Total liabilities | – | 22,240,884 |
| Net assets | $2,246,101,088 | |
| Net Assets by Source | ||
| Capital received from investors | 1,925,265,105 | |
| Net investment income not yet distributed | 3,997,292 | |
| Net realized capital losses | (643,049) | |
| Net unrealized capital appreciation | 317,481,740 | |
| Net Asset Value (NAV) | ||||
| Net Assets | ÷ | Shares Outstanding | = | NAV |
| $2,246,101,088 | 43,250,000 | $51.93 | ||
See financial notes 39
Schwab U.S. Large-Cap Growth ETF
Statement of
Operations
For the period September 1, 2014 through August 31, 2015
| Investment Income | ||
| Dividends received from affiliated issuer | $55,572 | |
| Dividends received from unaffiliated issuers (net of foreign withholding tax of $8,962) | 25,198,476 | |
| Securities on loan | + | 100,622 |
| Total investment income | 25,354,670 | |
| Expenses | ||
| Investment adviser fees | 1,343,224 | |
| Total expenses | – | 1,343,224 |
| Net investment income | 24,011,446 | |
| Realized and Unrealized Gains (Losses) | ||
| Net realized gains on affiliated issuer | 263,641 | |
| Net realized gains on unaffiliated investments | 6,975,930 | |
| Net realized gains on in-kind redemptions | 101,367,173 | |
| Net realized gains on futures contracts | + | 282,847 |
| Net realized gains | 108,889,591 | |
| Net change in unrealized appreciation (depreciation) on affiliated issuer | 52,619 | |
| Net change in unrealized appreciation (depreciation) on unaffiliated investments | (71,652,470) | |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | (25,633) |
| Net change in unrealized appreciation (depreciation) | + | (71,625,484) |
| Net realized and unrealized gains | 37,264,107 | |
| Increase in net assets resulting from operations | $61,275,553 | |
40 See financial notes
Schwab U.S. Large-Cap Growth ETF
Statement of
Changes in Net Assets
For the current and prior report periods
| Operations | |||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||
| Net investment income | $24,011,446 | $14,972,635 | |
| Net realized gains | 108,889,591 | 11,034,748 | |
| Net change in unrealized appreciation (depreciation) | + | (71,625,484) | 248,390,394 |
| Increase in net assets resulting from operations | 61,275,553 | 274,397,777 | |
| Distributions to Shareholders | |||
| Distributions from net investment income | ($22,727,825) | ($13,914,310) | |
| Transactions in Fund Shares | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | VALUE | SHARES | VALUE | ||
| Shares sold | 20,150,000 | $1,054,286,554 | 9,250,000 | $420,385,407 | |
| Shares redeemed | + | (6,550,000) | (332,537,817) | (500,000) | (22,677,152) |
| Net transactions in fund shares | 13,600,000 | $721,748,737 | 8,750,000 | $397,708,255 | |
| Shares Outstanding and Net Assets | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | NET ASSETS | SHARES | NET ASSETS | ||
| Beginning of period | 29,650,000 | $1,485,804,623 | 20,900,000 | $827,612,901 | |
| Total increase | + | 13,600,000 | 760,296,465 | 8,750,000 | 658,191,722 |
| End of period | 43,250,000 | $2,246,101,088 | 29,650,000 | $1,485,804,623 | |
| Net investment income not yet distributed | $3,997,292 | $2,968,776 | |||
See financial notes 41
Schwab U.S. Large-Cap Value ETF
Financial Statements
Financial Highlights
| 9/1/14– 8/31/15 | 9/1/13– 8/31/14 | 9/1/12– 8/31/13 | 9/1/11– 8/31/12 | 9/1/10– 8/31/11 | ||
| Per-Share Data ($) | ||||||
| Net asset value at beginning of period | 43.54 | 36.49 | 31.24 | 27.34 | 24.36 | |
| Income (loss) from investment operations: | ||||||
| Net investment income (loss) | 1.20 1 | 1.00 | 0.93 | 0.82 | 0.70 | |
| Net realized and unrealized gains (losses) | (2.75) | 7.03 | 5.24 | 3.89 | 2.99 | |
| Total from investment operations | (1.55) | 8.03 | 6.17 | 4.71 | 3.69 | |
| Less distributions: | ||||||
| Distributions from net investment income | (1.10) | (0.98) | (0.92) | (0.81) | (0.71) | |
| Net asset value at end of period | 40.89 | 43.54 | 36.49 | 31.24 | 27.34 | |
| Total return (%) | (3.71) | 22.25 | 20.06 | 17.53 | 15.12 | |
| Ratios/Supplemental Data (%) | ||||||
| Ratios to average net assets: | ||||||
| Total expenses | 0.07 | 0.07 | 0.07 | 0.13 | 0.13 | |
| Net investment income (loss) | 2.75 | 2.54 | 2.73 | 2.89 | 2.68 | |
| Portfolio turnover rate2 | 15 | 9 | 9 | 8 | 7 | |
| Net assets, end of period ($ x 1,000) | 1,435,194 | 1,162,576 | 700,693 | 385,791 | 241,994 | |
1
Calculated based on the average shares outstanding during the period.
2
Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
42 See financial notes
Schwab U.S. Large-Cap Value ETF
Condensed Portfolio Holdings as of August 31, 2015
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™ 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 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.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.6% | Common Stock | 1,366,886,273 | 1,429,395,755 |
| 0.3% | Other Investment Companies | 4,667,322 | 4,662,205 |
| 99.9% | Total Investments | 1,371,553,595 | 1,434,057,960 |
| 0.1% | Other Assets and Liabilities, Net | 1,136,374 | |
| 100.0% | Net Assets | 1,435,194,334 | |
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Common Stock 99.6% of net assets | |||||
| Automobiles & Components 1.7% | |||||
| Ford Motor Co. | 600,306 | 0.6 | 8,326,244 | ||
| Other Securities | 1.1 | 16,596,126 | |||
| 1.7 | 24,922,370 | ||||
| Banks 11.6% | |||||
| Bank of America Corp. | 1,587,240 | 1.8 | 25,935,502 | ||
| Citigroup, Inc. | 456,654 | 1.7 | 24,421,856 | ||
| JPMorgan Chase & Co. | 559,589 | 2.5 | 35,869,655 | ||
| The PNC Financial Services Group, Inc. | 78,544 | 0.5 | 7,156,929 | ||
| U.S. Bancorp | 266,213 | 0.8 | 11,274,121 | ||
| Wells Fargo & Co. | 705,715 | 2.6 | 37,635,781 | ||
| Other Securities | 1.7 | 24,534,739 | |||
| 11.6 | 166,828,583 | ||||
| Capital Goods 7.8% | |||||
| General Dynamics Corp. | 47,421 | 0.5 | 6,735,205 | ||
| General Electric Co. | 1,518,201 | 2.6 | 37,681,749 | ||
| Honeywell International, Inc. | 117,773 | 0.8 | 11,691,326 | ||
| Lockheed Martin Corp. | 40,644 | 0.6 | 8,176,760 | ||
| United Technologies Corp. | 125,198 | 0.8 | 11,469,389 | ||
| Other Securities | 2.5 | 36,614,547 | |||
| 7.8 | 112,368,976 | ||||
| Commercial & Professional Services 0.6% | |||||
| Other Securities | 0.6 | 9,177,191 | |||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Consumer Durables & Apparel 0.7% | |||||
| Other Securities | 0.7 | 10,219,685 | |||
| Consumer Services 1.6% | |||||
| McDonald's Corp. | 145,282 | 1.0 | 13,804,696 | ||
| Other Securities | 0.6 | 9,685,628 | |||
| 1.6 | 23,490,324 | ||||
| Diversified Financials 3.3% | |||||
| The Bank of New York Mellon Corp. | 168,649 | 0.5 | 6,712,230 | ||
| The Goldman Sachs Group, Inc. | 60,839 | 0.8 | 11,474,236 | ||
| Other Securities | 2.0 | 28,821,221 | |||
| 3.3 | 47,007,687 | ||||
| Energy 9.1% | |||||
| Chevron Corp. | 284,197 | 1.6 | 23,017,115 | ||
| ConocoPhillips | 186,740 | 0.6 | 9,178,271 | ||
| Exxon Mobil Corp. | 629,540 | 3.3 | 47,366,590 | ||
| Kinder Morgan, Inc. | 262,599 | 0.6 | 8,510,834 | ||
| Occidental Petroleum Corp. | 116,202 | 0.6 | 8,483,908 | ||
| Other Securities | 2.4 | 34,039,391 | |||
| 9.1 | 130,596,109 | ||||
| Food & Staples Retailing 1.7% | |||||
| Wal-Mart Stores, Inc. | 238,052 | 1.1 | 15,409,106 | ||
| Other Securities | 0.6 | 9,117,651 | |||
| 1.7 | 24,526,757 | ||||
| Food, Beverage & Tobacco 7.8% | |||||
| Altria Group, Inc. | 296,887 | 1.1 | 15,907,205 | ||
| Mondelez International, Inc., Class A | 246,477 | 0.7 | 10,440,766 | ||
| Philip Morris International, Inc. | 234,677 | 1.3 | 18,727,224 | ||
| The Coca-Cola Co. | 590,240 | 1.6 | 23,208,237 | ||
| Other Securities | 3.1 | 42,793,067 | |||
| 7.8 | 111,076,499 | ||||
| Health Care Equipment & Services 2.7% | |||||
| Abbott Laboratories | 225,862 | 0.7 | 10,229,290 | ||
| Other Securities | 2.0 | 28,740,760 | |||
| 2.7 | 38,970,050 | ||||
| Household & Personal Products 2.6% | |||||
| The Procter & Gamble Co. | 408,567 | 2.0 | 28,873,430 | ||
| Other Securities | 0.6 | 8,675,861 | |||
| 2.6 | 37,549,291 | ||||
| Insurance 5.6% | |||||
| American International Group, Inc. | 200,999 | 0.8 | 12,128,280 | ||
| MetLife, Inc. | 168,138 | 0.6 | 8,423,714 | ||
| Other Securities | 4.2 | 60,066,436 | |||
| 5.6 | 80,618,430 | ||||
See financial notes 43
Schwab U.S. Large-Cap Value ETF
Condensed Portfolio Holdings continued
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Materials 3.2% | |||||
| E.I. du Pont de Nemours & Co. | 136,935 | 0.5 | 7,052,152 | ||
| The Dow Chemical Co. | 163,960 | 0.5 | 7,174,890 | ||
| Other Securities | 2.2 | 31,510,893 | |||
| 3.2 | 45,737,935 | ||||
| Media 1.8% | |||||
| Time Warner, Inc. | 125,005 | 0.6 | 8,887,855 | ||
| Twenty-First Century Fox, Inc., Class A | 268,066 | 0.5 | 7,342,328 | ||
| Other Securities | 0.7 | 9,642,897 | |||
| 1.8 | 25,873,080 | ||||
| Pharmaceuticals, Biotechnology & Life Sciences 10.2% | |||||
| AbbVie, Inc. | 259,929 | 1.1 | 16,222,169 | ||
| Bristol-Myers Squibb Co. | 252,414 | 1.0 | 15,011,061 | ||
| Eli Lilly & Co. | 147,497 | 0.8 | 12,146,378 | ||
| Johnson & Johnson | 417,038 | 2.7 | 39,193,231 | ||
| Merck & Co., Inc. | 427,635 | 1.6 | 23,028,145 | ||
| Pfizer, Inc. | 925,825 | 2.1 | 29,830,081 | ||
| Other Securities | 0.9 | 10,266,652 | |||
| 10.2 | 145,697,717 | ||||
| Real Estate 2.8% | |||||
| Other Securities | 2.8 | 40,173,411 | |||
| Retailing 1.5% | |||||
| Target Corp. | 95,833 | 0.5 | 7,447,182 | ||
| Other Securities | 1.0 | 13,321,425 | |||
| 1.5 | 20,768,607 | ||||
| Semiconductors & Semiconductor Equipment 2.8% | |||||
| Intel Corp. | 716,890 | 1.4 | 20,460,041 | ||
| Texas Instruments, Inc. | 157,822 | 0.5 | 7,550,204 | ||
| Other Securities | 0.9 | 11,711,745 | |||
| 2.8 | 39,721,990 | ||||
| Software & Services 6.4% | |||||
| International Business Machines Corp. | 137,662 | 1.4 | 20,358,833 | ||
| Microsoft Corp. | 1,219,793 | 3.7 | 53,085,392 | ||
| Other Securities | 1.3 | 18,014,871 | |||
| 6.4 | 91,459,096 | ||||
| Technology Hardware & Equipment 3.2% | |||||
| Cisco Systems, Inc. | 763,393 | 1.4 | 19,756,611 | ||
| Hewlett-Packard Co. | 273,518 | 0.5 | 7,674,915 | ||
| Other Securities | 1.3 | 18,316,905 | |||
| 3.2 | 45,748,431 | ||||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Telecommunication Services 4.4% | |||||
| AT&T, Inc. | 925,597 | 2.1 | 30,729,820 | ||
| Verizon Communications, Inc. | 613,748 | 2.0 | 28,238,545 | ||
| Other Securities | 0.3 | 4,112,003 | |||
| 4.4 | 63,080,368 | ||||
| Transportation 0.6% | |||||
| Other Securities | 0.6 | 9,097,457 | |||
| Utilities 5.9% | |||||
| Duke Energy Corp. | 104,818 | 0.5 | 7,432,644 | ||
| NextEra Energy, Inc. | 68,072 | 0.5 | 6,698,966 | ||
| Other Securities | 4.9 | 70,554,101 | |||
| 5.9 | 84,685,711 | ||||
| Total Common Stock | |||||
| (Cost $1,366,886,273) | 1,429,395,755 | ||||
| Other Investment Companies 0.3% of net assets | |||||
| Equity Fund 0.1% | |||||
| Other Securities | 0.1 | 774,160 | |||
| Money Market Fund 0.0% | |||||
| Other Securities | 0.0 | 308,513 | |||
| Securities Lending Collateral 0.2% | |||||
| Other Securities | 0.2 | 3,579,532 | |||
| Total Other Investment Companies | |||||
| (Cost $4,667,322) | 4,662,205 | ||||
End of Investments.
At 08/31/15, the tax basis cost of the fund's investments was $1,371,731,239 and the unrealized appreciation and depreciation were $138,383,286 and ($76,056,565), respectively, with a net unrealized appreciation $62,326,721.
For the following notes, please refer to the complete schedule of portfolio holdings.
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $3,916,690. Non-cash collateral pledged to the fund for securities on loan amounted to $387,720. |
| (b) | The rate shown is the 7-day yield. |
| ETF — | Exchange Traded Fund |
| REIT — | Real Estate Investment Trust |
44 See financial notes
Schwab U.S. Large-Cap Value ETF
Condensed Portfolio Holdings continued
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2015 (see financial note 2(a) for additional information):
| Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
| Common Stock1 | $1,429,395,755 | $— | $— | $1,429,395,755 | |||||
| Other Investment Companies1 | 4,662,205 | — | — | 4,662,205 | |||||
| Total | $1,434,057,960 | $— | $— | $1,434,057,960 |
| 1 | As categorized in the complete schedule of 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, 2015.
See financial notes 45
Schwab U.S. Large-Cap Value ETF
Statement of
Assets and Liabilities
As of August 31, 2015
| Assets | ||
| Investments, at value (cost $1,367,974,063) including securities on loan of $3,916,690 | $1,430,478,428 | |
| Collateral invested for securities on loan, at value (cost $3,579,532) | + | 3,579,532 |
| Total investments, at value (cost $1,371,553,595) | 1,434,057,960 | |
| Receivables: | ||
| Fund shares sold | 8,201,248 | |
| Dividends | 4,655,652 | |
| Income from securities on loan | 6,445 | |
| Foreign tax reclaims | + | 1,576 |
| Total assets | 1,446,922,881 | |
| Liabilities | ||
| Collateral held for securities on loan | 3,579,532 | |
| Payables: | ||
| Investments bought | 8,130,093 | |
| Investment adviser fees | + | 18,922 |
| Total liabilities | 11,728,547 | |
| Net Assets | ||
| Total assets | 1,446,922,881 | |
| Total liabilities | – | 11,728,547 |
| Net assets | $1,435,194,334 | |
| Net Assets by Source | ||
| Capital received from investors | 1,368,643,090 | |
| Net investment income not yet distributed | 7,079,782 | |
| Net realized capital losses | (3,032,903) | |
| Net unrealized capital appreciation | 62,504,365 | |
| Net Asset Value (NAV) | ||||
| Net Assets | ÷ | Shares Outstanding | = | NAV |
| $1,435,194,334 | 35,100,000 | $40.89 | ||
46 See financial notes
Schwab U.S. Large-Cap Value ETF
Statement of
Operations
For the period September 1, 2014 through August 31, 2015
| Investment Income | ||
| Dividends (net of foreign withholding tax of $1,182) | $36,889,576 | |
| Securities on loan | + | 84,985 |
| Total investment income | 36,974,561 | |
| Expenses | ||
| Investment adviser fees | 918,094 | |
| Total expenses | – | 918,094 |
| Net investment income | 36,056,467 | |
| Realized and Unrealized Gains (Losses) | ||
| Net realized losses on investments | (244,230) | |
| Net realized gains on in-kind redemptions | 61,436,196 | |
| Net realized gains on futures contracts | + | 86,841 |
| Net realized gains | 61,278,807 | |
| Net change in unrealized appreciation (depreciation) on investments | (156,701,092) | |
| Net realized and unrealized losses | (95,422,285) | |
| Decrease in net assets resulting from operations | ($59,365,818) | |
See financial notes 47
Schwab U.S. Large-Cap Value ETF
Statement of
Changes in Net Assets
For the current and prior report periods
| Operations | |||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||
| Net investment income | $36,056,467 | $22,801,496 | |
| Net realized gains | 61,278,807 | 15,739,141 | |
| Net change in unrealized appreciation (depreciation) | + | (156,701,092) | 135,710,697 |
| Increase (decrease) in net assets resulting from operations | (59,365,818) | 174,251,334 | |
| Distributions to Shareholders | |||
| Distributions from net investment income | ($32,821,400) | ($21,232,840) | |
| Transactions in Fund Shares | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | VALUE | SHARES | VALUE | ||
| Shares sold | 12,900,000 | $560,369,492 | 8,900,000 | $364,173,324 | |
| Shares redeemed | + | (4,500,000) | (195,564,092) | (1,400,000) | (55,308,685) |
| Net transactions in fund shares | 8,400,000 | $364,805,400 | 7,500,000 | $308,864,639 | |
| Shares Outstanding and Net Assets | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | NET ASSETS | SHARES | NET ASSETS | ||
| Beginning of period | 26,700,000 | $1,162,576,152 | 19,200,000 | $700,693,019 | |
| Total increase | + | 8,400,000 | 272,618,182 | 7,500,000 | 461,883,133 |
| End of period | 35,100,000 | $1,435,194,334 | 26,700,000 | $1,162,576,152 | |
| Net investment income not yet distributed | $7,079,782 | $4,194,771 | |||
48 See financial notes
Schwab U.S. Mid-Cap ETF
Financial Statements
Financial Highlights
| 9/1/14– 8/31/15 | 9/1/13– 8/31/14 | 9/1/12– 8/31/13 | 9/1/11– 8/31/12 | 1/12/11 1– 8/31/11 | ||
| Per-Share Data ($) | ||||||
| Net asset value at beginning of period | 40.56 | 32.94 | 26.56 | 23.75 | 25.00 | |
| Income (loss) from investment operations: | ||||||
| Net investment income (loss) | 0.59 2 | 0.56 | 0.51 | 0.37 | 0.18 | |
| Net realized and unrealized gains (losses) | 0.12 | 7.62 | 6.40 | 2.77 | (1.29) | |
| Total from investment operations | 0.71 | 8.18 | 6.91 | 3.14 | (1.11) | |
| Less distributions: | ||||||
| Distributions from net investment income | (0.57) | (0.56) | (0.53) | (0.33) | (0.14) | |
| Net asset value at end of period | 40.70 | 40.56 | 32.94 | 26.56 | 23.75 | |
| Total return (%) | 1.71 | 24.97 | 26.27 | 13.32 | (4.49) 3 | |
| Ratios/Supplemental Data (%) | ||||||
| Ratios to average net assets: | ||||||
| Total expenses | 0.07 | 0.07 | 0.07 | 0.13 | 0.13 4 | |
| Net investment income (loss) | 1.42 | 1.53 | 1.70 | 1.53 | 1.18 4 | |
| Portfolio turnover rate5 | 12 | 9 | 25 | 19 | 9 3 | |
| Net assets, end of period ($ x 1,000) | 1,841,785 | 1,190,517 | 611,081 | 205,840 | 79,550 | |
1
Commencement of operations.
2
Calculated based on the average shares outstanding during the period.
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 49
Schwab U.S. Mid-Cap ETF
Condensed Portfolio Holdings as of August 31, 2015
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™ 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 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.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.8% | Common Stock | 1,734,587,881 | 1,837,931,571 |
| 1.4% | Other Investment Companies | 25,229,153 | 25,229,153 |
| 101.2% | Total Investments | 1,759,817,034 | 1,863,160,724 |
| (1.2%) | Other Assets and Liabilities, Net | (21,375,712) | |
| 100.0% | Net Assets | 1,841,785,012 | |
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Common Stock 99.8% of net assets | |||||
| Automobiles & Components 1.1% | |||||
| Other Securities | 1.1 | 20,944,673 | |||
| Banks 3.7% | |||||
| Other Securities | 3.7 | 67,359,015 | |||
| Capital Goods 11.2% | |||||
| Snap-on, Inc. | 43,581 | 0.4 | 6,962,936 | ||
| TransDigm Group, Inc. * | 37,210 | 0.5 | 8,551,974 | ||
| Wabtec Corp. | 72,309 | 0.4 | 6,924,310 | ||
| Other Securities | 9.9 | 183,924,380 | |||
| 11.2 | 206,363,600 | ||||
| Commercial & Professional Services 3.1% | |||||
| Equifax, Inc. | 88,778 | 0.5 | 8,691,366 | ||
| Other Securities | 2.6 | 47,634,868 | |||
| 3.1 | 56,326,234 | ||||
| Consumer Durables & Apparel 5.6% | |||||
| D.R. Horton, Inc. | 249,619 | 0.4 | 7,580,929 | ||
| Hanesbrands, Inc. | 297,409 | 0.5 | 8,954,985 | ||
| Jarden Corp. * | 146,769 | 0.4 | 7,535,120 | ||
| Lennar Corp., Class A | 133,462 | 0.4 | 6,793,216 | ||
| Mohawk Industries, Inc. * | 46,086 | 0.5 | 9,077,559 | ||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Newell Rubbermaid, Inc. | 203,019 | 0.5 | 8,553,190 | ||
| Other Securities | 2.9 | 54,854,715 | |||
| 5.6 | 103,349,714 | ||||
| Consumer Services 2.7% | |||||
| H&R Block, Inc. | 202,505 | 0.4 | 6,889,220 | ||
| Norwegian Cruise Line Holdings Ltd. * | 120,262 | 0.4 | 6,927,091 | ||
| Other Securities | 1.9 | 35,706,376 | |||
| 2.7 | 49,522,687 | ||||
| Diversified Financials 3.2% | |||||
| Voya Financial, Inc. | 159,986 | 0.4 | 6,892,197 | ||
| Other Securities | 2.8 | 52,880,535 | |||
| 3.2 | 59,772,732 | ||||
| Energy 3.8% | |||||
| Tesoro Corp. | 93,783 | 0.5 | 8,628,974 | ||
| Other Securities | 3.3 | 60,712,897 | |||
| 3.8 | 69,341,871 | ||||
| Food & Staples Retailing 0.5% | |||||
| Other Securities | 0.5 | 9,860,025 | |||
| Food, Beverage & Tobacco 1.3% | |||||
| Other Securities | 1.3 | 23,704,371 | |||
| Health Care Equipment & Services 4.5% | |||||
| Hologic, Inc. * | 181,627 | 0.4 | 7,048,944 | ||
| Other Securities | 4.1 | 76,513,400 | |||
| 4.5 | 83,562,344 | ||||
| Household & Personal Products 0.9% | |||||
| Other Securities | 0.9 | 16,206,017 | |||
| Insurance 6.3% | |||||
| FNF Group | 206,467 | 0.4 | 7,517,463 | ||
| Markel Corp. * | 10,426 | 0.5 | 8,588,417 | ||
| Other Securities | 5.4 | 99,738,830 | |||
| 6.3 | 115,844,710 | ||||
| Materials 7.3% | |||||
| International Flavors & Fragrances, Inc. | 61,454 | 0.4 | 6,732,286 | ||
| Martin Marietta Materials, Inc. | 46,185 | 0.4 | 7,749,843 | ||
| Sealed Air Corp. | 154,845 | 0.4 | 7,966,775 | ||
| Vulcan Materials Co. | 99,410 | 0.5 | 9,306,764 | ||
| WestRock Co. | 193,685 | 0.6 | 11,495,205 | ||
| Other Securities | 5.0 | 90,857,558 | |||
| 7.3 | 134,108,431 | ||||
| Media 2.1% | |||||
| Other Securities | 2.1 | 38,930,739 | |||
| Pharmaceuticals, Biotechnology & Life Sciences 5.8% | |||||
| Alkermes plc * | 112,894 | 0.4 | 6,723,967 | ||
| BioMarin Pharmaceutical, Inc. * | 118,821 | 0.8 | 15,356,426 | ||
50 See financial notes
Schwab U.S. Mid-Cap ETF
Condensed Portfolio Holdings continued
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Endo International plc * | 151,500 | 0.6 | 11,665,500 | ||
| Hospira, Inc. * | 128,027 | 0.6 | 11,518,589 | ||
| Incyte Corp. * | 120,760 | 0.8 | 14,031,104 | ||
| Jazz Pharmaceuticals plc * | 45,497 | 0.4 | 7,680,804 | ||
| Other Securities | 2.2 | 40,127,681 | |||
| 5.8 | 107,104,071 | ||||
| Real Estate 10.3% | |||||
| CBRE Group, Inc., Class A * | 212,445 | 0.4 | 6,802,489 | ||
| Extra Space Storage, Inc. | 90,779 | 0.4 | 6,670,441 | ||
| Realty Income Corp. | 172,786 | 0.4 | 7,721,806 | ||
| SL Green Realty Corp. | 73,715 | 0.4 | 7,630,240 | ||
| Other Securities | 8.7 | 160,051,484 | |||
| 10.3 | 188,876,460 | ||||
| Retailing 4.9% | |||||
| Advance Auto Parts, Inc. | 54,639 | 0.5 | 9,575,485 | ||
| Foot Locker, Inc. | 102,860 | 0.4 | 7,281,459 | ||
| LKQ Corp. * | 226,692 | 0.4 | 6,798,493 | ||
| Signet Jewelers Ltd. | 60,522 | 0.5 | 8,352,036 | ||
| Staples, Inc. | 474,832 | 0.4 | 6,747,363 | ||
| Tractor Supply Co. | 101,723 | 0.5 | 8,677,989 | ||
| Ulta Salon, Cosmetics & Fragrance, Inc. * | 47,861 | 0.4 | 7,566,345 | ||
| Other Securities | 1.8 | 35,018,799 | |||
| 4.9 | 90,017,969 | ||||
| Semiconductors & Semiconductor Equipment 1.9% | |||||
| Skyworks Solutions, Inc. | 142,390 | 0.7 | 12,437,766 | ||
| Other Securities | 1.2 | 22,045,512 | |||
| 1.9 | 34,483,278 | ||||
| Software & Services 8.2% | |||||
| Akamai Technologies, Inc. * | 134,400 | 0.5 | 9,584,064 | ||
| ServiceNow, Inc. * | 101,659 | 0.4 | 7,213,723 | ||
| Other Securities | 7.3 | 135,130,711 | |||
| 8.2 | 151,928,498 | ||||
| Technology Hardware & Equipment 3.6% | |||||
| Harris Corp. | 91,271 | 0.4 | 7,011,438 | ||
| Palo Alto Networks, Inc. * | 51,612 | 0.5 | 8,475,723 | ||
| Other Securities | 2.7 | 50,749,562 | |||
| 3.6 | 66,236,723 | ||||
| Telecommunication Services 1.0% | |||||
| Level 3 Communications, Inc. * | 219,580 | 0.5 | 9,821,813 | ||
| Other Securities | 0.5 | 8,130,370 | |||
| 1.0 | 17,952,183 | ||||
| Transportation 2.1% | |||||
| Alaska Air Group, Inc. | 98,015 | 0.4 | 7,337,403 | ||
| Expeditors International of Washington, Inc. | 142,004 | 0.4 | 6,953,936 | ||
| Other Securities | 1.3 | 24,420,090 | |||
| 2.1 | 38,711,429 | ||||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Utilities 4.7% | |||||
| American Water Works Co., Inc. | 134,341 | 0.4 | 6,977,672 | ||
| CMS Energy Corp. | 204,267 | 0.4 | 6,695,872 | ||
| Other Securities | 3.9 | 73,750,253 | |||
| 4.7 | 87,423,797 | ||||
| Total Common Stock | |||||
| (Cost $1,734,587,881) | 1,837,931,571 | ||||
| Other Investment Companies 1.4% of net assets | |||||
| Money Market Fund 0.0% | |||||
| Other Securities | 0.0 | 161,224 | |||
| Securities Lending Collateral 1.4% | |||||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b) | 1.4 | 25,067,929 | |||
| Total Other Investment Companies | |||||
| (Cost $25,229,153) | 25,229,153 | ||||
End of Investments.
At 08/31/15, the tax basis cost of the fund's investments was $1,760,811,639 and the unrealized appreciation and depreciation were $218,264,826 and ($115,915,741), respectively, with a net unrealized appreciation of $102,349,085.
For the following notes, please refer to the complete schedule of portfolio holdings.
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $26,279,336. Non-cash collateral pledged to the fund for securities on loan amounted to $1,593,243. |
| (b) | The rate shown is the 7-day yield. |
In addition to the above, the fund held the following at 08/31/15:
| Number of Contracts | Contract Value ($) | Unrealized Depreciation ($) | ||||
| Futures Contracts | ||||||
| S&P 500 Index, e-mini, Long, expires 09/18/15 | 18 | 1,772,280 | (7,955) | |||
See financial notes 51
Schwab U.S. Mid-Cap ETF
Condensed Portfolio Holdings continued
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2015 (see financial note 2(a) for additional information):
Assets Valuation Input
| Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
| Common Stock1 | $1,837,931,571 | $— | $— | $1,837,931,571 | |||||
| Other Investment Companies1 | 25,229,153 | — | — | 25,229,153 | |||||
| Total | $1,863,160,724 | $— | $— | $1,863,160,724 | |||||
| Liabilities Valuation Input | |||||||||
| Other Financial Instruments | |||||||||
| Futures Contracts2 | ($7,955) | $— | $— | ($7,955) |
| 1 | As categorized in the complete schedule of portfolio holdings. |
| 2 | Futures contracts are not included in Investments in the schedule of condensed portfolio holdings and are valued at unrealized appreciation or depreciation. |
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, 2015.
52 See financial notes
Schwab U.S. Mid-Cap ETF
Statement of
Assets and Liabilities
As of August 31, 2015
| Assets | ||
| Investments, at value (cost $1,734,749,105) including securities on loan of $26,279,336 | $1,838,092,795 | |
| Collateral invested for securities on loan, at value (cost $25,067,929) | + | 25,067,929 |
| Total investments, at value (cost $1,759,817,034) | 1,863,160,724 | |
| Deposit with broker for futures contracts | 82,800 | |
| Receivables: | ||
| Investments sold | 12,523,695 | |
| Fund shares sold | 28,520,793 | |
| Dividends | 1,720,479 | |
| Income from securities on loan | + | 44,706 |
| Total assets | 1,906,053,197 | |
| Liabilities | ||
| Collateral held for securities on loan | 25,067,929 | |
| Payables: | ||
| Investments bought | 37,122,464 | |
| Investment adviser fees | 24,219 | |
| Fund shares redeemed | 2,035,123 | |
| Variation margin on futures contracts | + | 18,450 |
| Total liabilities | 64,268,185 | |
| Net Assets | ||
| Total assets | 1,906,053,197 | |
| Total liabilities | – | 64,268,185 |
| Net assets | $1,841,785,012 | |
| Net Assets by Source | ||
| Capital received from investors | 1,738,524,286 | |
| Net investment income not yet distributed | 1,663,249 | |
| Net realized capital losses | (1,738,258) | |
| Net unrealized capital appreciation | 103,335,735 | |
| Net Asset Value (NAV) | ||||
| Net Assets | ÷ | Shares Outstanding | = | NAV |
| $1,841,785,012 | 45,250,000 | $40.70 | ||
See financial notes 53
Schwab U.S. Mid-Cap ETF
Statement of
Operations
For the period September 1, 2014 through August 31, 2015
| Investment Income | ||
| Dividends (net of foreign withholding tax of $15,244) | $22,666,977 | |
| Interest | 16 | |
| Securities on loan | + | 775,203 |
| Total investment income | 23,442,196 | |
| Expenses | ||
| Investment adviser fees | 1,099,636 | |
| Total expenses | – | 1,099,636 |
| Net investment income | 22,342,560 | |
| Realized and Unrealized Gains (Losses) | ||
| Net realized gains on investments | 5,071,035 | |
| Net realized gains on in-kind redemptions | 73,137,909 | |
| Net realized gains on futures contracts | + | 115,447 |
| Net realized gains | 78,324,391 | |
| Net change in unrealized appreciation (depreciation) on investments | (100,417,501) | |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | (7,955) |
| Net change in unrealized appreciation (depreciation) | + | (100,425,456) |
| Net realized and unrealized losses | (22,101,065) | |
| Increase in net assets resulting from operations | $241,495 | |
54 See financial notes
Schwab U.S. Mid-Cap ETF
Statement of
Changes in Net Assets
For the current and prior report periods
| Operations | |||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||
| Net investment income | $22,342,560 | $14,575,387 | |
| Net realized gains | 78,324,391 | 33,308,554 | |
| Net change in unrealized appreciation (depreciation) | + | (100,425,456) | 142,865,701 |
| Increase in net assets resulting from operations | 241,495 | 190,749,642 | |
| Distributions to Shareholders | |||
| Distributions from net investment income | ($20,721,520) | ($14,140,400) | |
| Transactions in Fund Shares | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | VALUE | SHARES | VALUE | ||
| Shares sold | 21,550,000 | $898,836,550 | 13,850,000 | $515,129,958 | |
| Shares redeemed | + | (5,650,000) | (227,088,435) | (3,050,000) | (112,303,454) |
| Net transactions in fund shares | 15,900,000 | $671,748,115 | 10,800,000 | $402,826,504 | |
| Shares Outstanding and Net Assets | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | NET ASSETS | SHARES | NET ASSETS | ||
| Beginning of period | 29,350,000 | $1,190,516,922 | 18,550,000 | $611,081,176 | |
| Total increase | + | 15,900,000 | 651,268,090 | 10,800,000 | 579,435,746 |
| End of period | 45,250,000 | $1,841,785,012 | 29,350,000 | $1,190,516,922 | |
| Net investment income not yet distributed | $1,663,249 | $1,026,552 | |||
See financial notes 55
Schwab U.S. Small-Cap ETF
Financial Statements
Financial Highlights
| 9/1/14– 8/31/15 | 9/1/13– 8/31/14 | 9/1/12– 8/31/13 | 9/1/11– 8/31/12 | 9/1/10– 8/31/11 | ||
| Per-Share Data ($) | ||||||
| Net asset value at beginning of period | 54.53 | 45.71 | 36.55 | 32.34 | 26.48 | |
| Income (loss) from investment operations: | ||||||
| Net investment income (loss) | 0.80 1 | 0.73 | 0.74 | 0.49 | 0.39 | |
| Net realized and unrealized gains (losses) | (1.07) | 8.84 | 9.18 | 4.16 | 5.86 | |
| Total from investment operations | (0.27) | 9.57 | 9.92 | 4.65 | 6.25 | |
| Less distributions: | ||||||
| Distributions from net investment income | (0.72) | (0.75) | (0.76) | (0.44) | (0.39) | |
| Net asset value at end of period | 53.54 | 54.53 | 45.71 | 36.55 | 32.34 | |
| Total return (%) | (0.54) | 21.01 | 27.47 | 14.52 | 23.55 | |
| Ratios/Supplemental Data (%) | ||||||
| Ratios to average net assets: | ||||||
| Total expenses | 0.08 | 0.08 | 0.09 2 | 0.13 | 0.13 | |
| Net investment income (loss) | 1.44 | 1.41 | 1.74 | 1.44 | 1.17 | |
| Portfolio turnover rate3 | 9 | 13 | 22 | 12 | 11 | |
| Net assets, end of period ($ x 1,000) | 2,893,741 | 2,104,717 | 1,446,857 | 641,516 | 462,523 | |
1
Calculated based on the average shares outstanding during the period.
2
Effective September 20, 2012, the annual operating expense ratio was reduced to 0.10%. On March 11, 2013, the rate was further reduced to 0.08%. The ratio presented for the period ended 8/31/13 is a blended ratio.
3
Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
56 See financial notes
Schwab U.S. Small-Cap ETF
Condensed Portfolio Holdings as of August 31, 2015
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™ 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 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.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.8% | Common Stock | 2,640,079,527 | 2,888,774,055 |
| 0.0% | Rights | 115,419 | 115,419 |
| 0.0% | Warrants | — | — |
| 3.0% | Other Investment Companies | 85,686,833 | 85,686,833 |
| 102.8% | Total Investments | 2,725,881,779 | 2,974,576,307 |
| (2.8%) | Other Assets and Liabilities, Net | (80,835,560) | |
| 100.0% | Net Assets | 2,893,740,747 | |
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Common Stock 99.8% of net assets | |||||
| Automobiles & Components 1.2% | |||||
| Other Securities | 1.2 | 34,917,914 | |||
| Banks 8.6% | |||||
| East West Bancorp, Inc. | 164,955 | 0.2 | 6,665,832 | ||
| Signature Bank * | 58,827 | 0.3 | 7,852,816 | ||
| SVB Financial Group * | 58,508 | 0.3 | 7,318,181 | ||
| Other Securities | 7.8 | 225,350,935 | |||
| 8.6 | 247,187,764 | ||||
| Capital Goods 9.2% | |||||
| Acuity Brands, Inc. | 49,799 | 0.3 | 9,704,331 | ||
| Allegion plc | 110,027 | 0.2 | 6,558,709 | ||
| HD Supply Holdings, Inc. * | 207,428 | 0.2 | 6,845,124 | ||
| Huntington Ingalls Industries, Inc. | 55,441 | 0.2 | 6,241,548 | ||
| Spirit AeroSystems Holdings, Inc., Class A * | 154,325 | 0.3 | 7,887,551 | ||
| The Middleby Corp. * | 65,338 | 0.2 | 7,092,440 | ||
| Other Securities | 7.8 | 220,775,679 | |||
| 9.2 | 265,105,382 | ||||
| Commercial & Professional Services 3.0% | |||||
| KAR Auction Services, Inc. | 164,610 | 0.2 | 6,097,154 | ||
| Other Securities | 2.8 | 81,904,200 | |||
| 3.0 | 88,001,354 | ||||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Consumer Durables & Apparel 2.6% | |||||
| Skechers U.S.A., Inc., Class A * | 47,167 | 0.2 | 6,638,284 | ||
| Other Securities | 2.4 | 68,627,226 | |||
| 2.6 | 75,265,510 | ||||
| Consumer Services 4.3% | |||||
| Domino's Pizza, Inc. | 62,720 | 0.2 | 6,644,557 | ||
| Service Corp. International | 232,034 | 0.2 | 6,879,808 | ||
| Other Securities | 3.9 | 111,104,827 | |||
| 4.3 | 124,629,192 | ||||
| Diversified Financials 2.8% | |||||
| CBOE Holdings, Inc. | 94,437 | 0.2 | 5,974,085 | ||
| E*TRADE Financial Corp. * | 334,863 | 0.3 | 8,803,548 | ||
| Other Securities | 2.3 | 66,065,484 | |||
| 2.8 | 80,843,117 | ||||
| Energy 3.5% | |||||
| Newfield Exploration Co. * | 190,618 | 0.2 | 6,349,486 | ||
| Other Securities | 3.3 | 95,141,866 | |||
| 3.5 | 101,491,352 | ||||
| Food & Staples Retailing 0.9% | |||||
| Rite Aid Corp. * | 1,044,724 | 0.3 | 8,618,973 | ||
| Other Securities | 0.6 | 17,194,794 | |||
| 0.9 | 25,813,767 | ||||
| Food, Beverage & Tobacco 2.1% | |||||
| Pinnacle Foods, Inc. | 125,973 | 0.2 | 5,648,629 | ||
| The Hain Celestial Group, Inc. * | 118,100 | 0.2 | 7,187,566 | ||
| The WhiteWave Foods Co. * | 205,631 | 0.3 | 9,487,814 | ||
| Other Securities | 1.4 | 37,886,500 | |||
| 2.1 | 60,210,509 | ||||
| Health Care Equipment & Services 7.0% | |||||
| athenahealth, Inc. * | 44,105 | 0.2 | 5,864,642 | ||
| Brookdale Senior Living, Inc. * | 208,105 | 0.2 | 5,706,239 | ||
| Centene Corp. * | 136,545 | 0.3 | 8,427,557 | ||
| DexCom, Inc. * | 84,611 | 0.3 | 7,965,280 | ||
| Teleflex, Inc. | 47,767 | 0.2 | 6,247,924 | ||
| Other Securities | 5.8 | 167,196,908 | |||
| 7.0 | 201,408,550 | ||||
| Household & Personal Products 0.5% | |||||
| Other Securities | 0.5 | 12,798,859 | |||
| Insurance 3.4% | |||||
| Assurant, Inc. | 78,228 | 0.2 | 5,816,252 | ||
| Other Securities | 3.2 | 93,783,423 | |||
| 3.4 | 99,599,675 | ||||
| Materials 4.7% | |||||
| Cytec Industries, Inc. | 82,186 | 0.2 | 6,098,201 | ||
| Other Securities | 4.5 | 130,904,295 | |||
| 4.7 | 137,002,496 | ||||
See financial notes 57
Schwab U.S. Small-Cap ETF
Condensed Portfolio Holdings continued
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Media 1.9% | |||||
| Other Securities | 1.9 | 54,167,635 | |||
| Pharmaceuticals, Biotechnology & Life Sciences 6.9% | |||||
| Alkermes plc * | 172,133 | 0.4 | 10,252,241 | ||
| Alnylam Pharmaceuticals, Inc. * | 84,359 | 0.3 | 8,681,385 | ||
| Anacor Pharmaceuticals, Inc. * | 50,183 | 0.2 | 6,544,365 | ||
| Isis Pharmaceuticals, Inc. * | 137,169 | 0.2 | 6,883,140 | ||
| United Therapeutics Corp. * | 52,970 | 0.3 | 7,978,341 | ||
| Other Securities | 5.5 | 159,082,198 | |||
| 6.9 | 199,421,670 | ||||
| Real Estate 10.4% | |||||
| Mid-America Apartment Communities, Inc. | 85,554 | 0.2 | 6,723,689 | ||
| Omega Healthcare Investors, Inc. | 182,746 | 0.2 | 6,173,160 | ||
| Starwood Property Trust, Inc. | 273,559 | 0.2 | 5,821,336 | ||
| Other Securities | 9.8 | 282,567,953 | |||
| 10.4 | 301,286,138 | ||||
| Retailing 4.3% | |||||
| Liberty Ventures, Series A * | 150,743 | 0.2 | 5,989,019 | ||
| Other Securities | 4.1 | 117,885,315 | |||
| 4.3 | 123,874,334 | ||||
| Semiconductors & Semiconductor Equipment 2.9% | |||||
| Qorvo, Inc. * | 172,913 | 0.3 | 9,598,401 | ||
| Other Securities | 2.6 | 74,888,774 | |||
| 2.9 | 84,487,175 | ||||
| Software & Services 8.6% | |||||
| Broadridge Financial Solutions, Inc. | 138,192 | 0.3 | 7,295,156 | ||
| CoStar Group, Inc. * | 37,047 | 0.2 | 6,558,801 | ||
| Fortinet, Inc. * | 162,902 | 0.2 | 6,864,690 | ||
| Splunk, Inc. * | 142,799 | 0.3 | 8,849,254 | ||
| SS&C Technologies Holdings, Inc. | 85,693 | 0.2 | 5,804,844 | ||
| The Ultimate Software Group, Inc. * | 32,430 | 0.2 | 5,713,842 | ||
| Other Securities | 7.2 | 208,799,686 | |||
| 8.6 | 249,886,273 | ||||
| Technology Hardware & Equipment 5.0% | |||||
| CDW Corp. | 160,306 | 0.2 | 6,372,164 | ||
| Palo Alto Networks, Inc. * | 79,243 | 0.4 | 13,013,285 | ||
| Other Securities | 4.4 | 126,213,644 | |||
| 5.0 | 145,599,093 | ||||
| Telecommunication Services 0.5% | |||||
| Other Securities | 0.5 | 15,644,609 | |||
| Transportation 2.4% | |||||
| Alaska Air Group, Inc. | 151,596 | 0.4 | 11,348,476 | ||
| JetBlue Airways Corp. * | 303,975 | 0.2 | 6,784,722 | ||
| Other Securities | 1.8 | 51,692,506 | |||
| 2.4 | 69,825,704 | ||||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Utilities 3.1% | |||||
| Atmos Energy Corp. | 115,548 | 0.2 | 6,330,875 | ||
| Other Securities | 2.9 | 83,975,108 | |||
| 3.1 | 90,305,983 | ||||
| Total Common Stock | |||||
| (Cost $2,640,079,527) | 2,888,774,055 | ||||
| Rights 0.0% of net assets | |||||
| Pharmaceuticals, Biotechnology & Life Sciences 0.0% | |||||
| Other Securities | 0.0 | — | |||
| Telecommunication Services 0.0% | |||||
| Other Securities | 0.0 | 115,419 | |||
| Total Rights | |||||
| (Cost $115,419) | 115,419 | ||||
| Warrants 0.0% of net assets | |||||
| Energy 0.0% | |||||
| Other Securities | 0.0 | — | |||
| Total Warrants | |||||
| (Cost $—) | — | ||||
| Other Investment Companies 3.0% of net assets | |||||
| Money Market Fund 0.3% | |||||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d) | 7,775,150 | 0.3 | 7,775,150 | ||
| Securities Lending Collateral 2.7% | |||||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d) | 2.7 | 77,911,683 | |||
| Total Other Investment Companies | |||||
| (Cost $85,686,833) | 85,686,833 | ||||
End of Investments.
At 08/31/15, the tax basis cost of the fund's investments was $2,727,145,511 and the unrealized appreciation and depreciation were $471,769,085 and ($224,338,289), respectively, with a net unrealized appreciation of $247,430,796.
58 See financial notes
Schwab U.S. Small-Cap ETF
Condensed Portfolio Holdings continued
For the following notes, please refer to the complete schedule of portfolio holdings.
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $75,089,306. Non-cash collateral pledged to the fund for securities on loan amounted to $35,619. |
| (b) | Fair-valued by management in accordance with procedures approved by the Board of Trustees. |
| (c) | Illiquid security. At the period end, the value of these amounted to $115,419 or 0.0% of net assets. |
| (d) | The rate shown is the 7-day yield. |
| CVR — | Contingent Value Rights |
| REIT — | Real Estate Investment Trust |
In addition to the above, the fund held the following at 8/31/15:
| Number of Contracts | Contract Value ($) | Unrealized Appreciation ($) | ||||
| Futures Contracts | ||||||
| Russell 2000 Index, e-mini, Long, expires 09/18/15 | 22 | 2,546,500 | 83,695 | |||
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2015 (see financial note 2(a) for additional information):
| Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
| Common Stock1 | $2,888,774,055 | $— | $— | $2,888,774,055 | |||||
| Rights 1 | — | — | 115,419 | 115,419 | |||||
| Warrants 1 | — | — | — | — | |||||
| Other Investment Companies1 | 85,686,833 | — | — | 85,686,833 | |||||
| Total | $2,974,460,888 | $— | $115,419 | $2,974,576,307 | |||||
| Other Financial Instruments | |||||||||
| Futures Contracts2 | $83,695 | $— | $— | $83,695 |
| 1 | As categorized in the complete schedule of portfolio holdings. |
| 2 | Futures contracts are not included in Investments in the schedule of condensed portfolio holdings and are valued at unrealized appreciation or depreciation. |
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
| Investments in Securities | Balance as of August 31, 2014 | Realized Gains (Losses) | Change in Unrealized Appreciation (Depreciation) | Gross Purchases | Gross Sales | Gross Transfers in | Gross Transfers out | Balance as of August 31, 2015 | ||||||||
| Rights | $115,419 | $— | $— | $— | $— | $— | $— | $115,419 | ||||||||
| Total | $115,419 | $— | $— | $— | $— | $— | $— | $115,419 |
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, 2015.
See financial notes 59
Schwab U.S. Small-Cap ETF
Statement of
Assets and Liabilities
As of August 31, 2015
| Assets | ||
| Investments, at value (cost $2,647,970,096) including securities on loan of $75,089,306 | $2,896,664,624 | |
| Collateral invested for securities on loan, at value (cost $77,911,683) | + | 77,911,683 |
| Total investments, at value (cost $2,725,881,779) | 2,974,576,307 | |
| Deposit with broker for futures contracts | 464,100 | |
| Receivables: | ||
| Investments sold | 51,974 | |
| Dividends | 2,386,940 | |
| Income from securities on loan | + | 259,965 |
| Total assets | 2,977,739,286 | |
| Liabilities | ||
| Collateral held for securities on loan | 77,911,683 | |
| Payables: | ||
| Investments bought | 5,985,785 | |
| Investment adviser fees | 43,753 | |
| Variation margin on futures contracts | + | 57,318 |
| Total liabilities | 83,998,539 | |
| Net Assets | ||
| Total assets | 2,977,739,286 | |
| Total liabilities | – | 83,998,539 |
| Net assets | $2,893,740,747 | |
| Net Assets by Source | ||
| Capital received from investors | 2,659,204,504 | |
| Net investment income not yet distributed | 4,406,447 | |
| Net realized capital losses | (18,648,427) | |
| Net unrealized capital appreciation | 248,778,223 | |
| Net Asset Value (NAV) | ||||
| Net Assets | ÷ | Shares Outstanding | = | NAV |
| $2,893,740,747 | 54,050,000 | $53.54 | ||
60 See financial notes
Schwab U.S. Small-Cap ETF
Statement of
Operations
For the period September 1, 2014 through August 31, 2015
| Investment Income | ||
| Dividends (net of foreign withholding tax of $9,439) | $35,280,770 | |
| Interest | 24 | |
| Securities on loan | + | 3,675,466 |
| Total investment income | 38,956,260 | |
| Expenses | ||
| Investment adviser fees | 2,050,585 | |
| Total expenses | – | 2,050,585 |
| Net investment income | 36,905,675 | |
| Realized and Unrealized Gains (Losses) | ||
| Net realized losses on investments | (1,218,955) | |
| Net realized gains on in-kind redemptions | 71,857,698 | |
| Net realized losses on futures contracts | + | (296,021) |
| Net realized gains | 70,342,722 | |
| Net change in unrealized appreciation (depreciation) on investments | (155,349,342) | |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | 62,305 |
| Net change in unrealized appreciation (depreciation) | + | (155,287,037) |
| Net realized and unrealized losses | (84,944,315) | |
| Decrease in net assets resulting from operations | ($48,038,640) | |
See financial notes 61
Schwab U.S. Small-Cap ETF
Statement of
Changes in Net Assets
For the current and prior report periods
| Operations | |||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||
| Net investment income | $36,905,675 | $26,692,311 | |
| Net realized gains | 70,342,722 | 76,440,009 | |
| Net change in unrealized appreciation (depreciation) | + | (155,287,037) | 218,372,146 |
| Increase (decrease) in net assets resulting from operations | (48,038,640) | 321,504,466 | |
| Distributions to Shareholders | |||
| Distributions from net investment income | ($32,271,525) | ($27,201,420) | |
| Transactions in Fund Shares | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | VALUE | SHARES | VALUE | ||
| Shares sold | 19,700,000 | $1,097,023,969 | 10,900,000 | $564,215,091 | |
| Shares redeemed | + | (4,250,000) | (227,689,724) | (3,950,000) | (200,658,054) |
| Net transactions in fund shares | 15,450,000 | $869,334,245 | 6,950,000 | $363,557,037 | |
| Shares Outstanding and Net Assets | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | NET ASSETS | SHARES | NET ASSETS | ||
| Beginning of period | 38,600,000 | $2,104,716,667 | 31,650,000 | $1,446,856,584 | |
| Total increase | + | 15,450,000 | 789,024,080 | 6,950,000 | 657,860,083 |
| End of period | 54,050,000 | $2,893,740,747 | 38,600,000 | $2,104,716,667 | |
| Net investment income not yet distributed | $4,406,447 | $428,607 | |||
62 See financial notes
Schwab U.S. Dividend Equity ETF
Financial Statements
Financial Highlights
| 9/1/14– 8/31/15 | 9/1/13– 8/31/14 | 9/1/12– 8/31/13 | 10/19/11 1– 8/31/12 | |||
| Per-Share Data ($) | ||||||
| Net asset value at beginning of period | 38.90 | 33.00 | 28.58 | 25.00 | ||
| Income (loss) from investment operations: | ||||||
| Net investment income (loss) | 1.19 2 | 1.04 | 0.91 | 0.62 | ||
| Net realized and unrealized gains (losses) | (2.46) | 5.86 | 4.40 | 3.43 | ||
| Total from investment operations | (1.27) | 6.90 | 5.31 | 4.05 | ||
| Less distributions: | ||||||
| Distributions from net investment income | (1.11) | (1.00) | (0.89) | (0.47) | ||
| Net asset value at end of period | 36.52 | 38.90 | 33.00 | 28.58 | ||
| Total return (%) | (3.47) | 21.15 | 18.93 | 16.31 3 | ||
| Ratios/Supplemental Data (%) | ||||||
| Ratios to average net assets: | ||||||
| Total expenses | 0.07 | 0.07 | 0.07 | 0.17 4 | ||
| Net investment income (loss) | 3.03 | 3.01 | 3.09 | 3.19 4 | ||
| Portfolio turnover rate5 | 19 | 26 | 13 | 17 3 | ||
| Net assets, end of period ($ x 1,000) | 2,497,808 | 2,075,331 | 1,141,690 | 504,464 | ||
1
Commencement of operations.
2
Calculated based on the average shares outstanding during the period.
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 63
Schwab U.S. Dividend Equity ETF
Condensed Portfolio Holdings as of August 31, 2015
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™ 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 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.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.6% | Common Stock | 2,594,120,757 | 2,487,882,717 |
| 0.0% | Other Investment Companies | 839,284 | 848,642 |
| 99.6% | Total Investments | 2,594,960,041 | 2,488,731,359 |
| 0.4% | Other Assets and Liabilities, Net | 9,076,324 | |
| 100.0% | Net Assets | 2,497,807,683 | |
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Common Stock 99.6% of net assets | |||||
| Banks 0.2% | |||||
| Other Securities | 0.2 | 4,817,740 | |||
| Capital Goods 12.1% | |||||
| 3M Co. | 392,143 | 2.2 | 55,739,206 | ||
| Caterpillar, Inc. | 374,894 | 1.1 | 28,656,897 | ||
| Eaton Corp. plc | 294,438 | 0.7 | 16,800,632 | ||
| Emerson Electric Co. | 423,702 | 0.8 | 20,219,059 | ||
| Lockheed Martin Corp. | 166,175 | 1.3 | 33,431,087 | ||
| PACCAR, Inc. | 219,617 | 0.5 | 12,950,815 | ||
| Raytheon Co. | 190,689 | 0.8 | 19,557,064 | ||
| Rockwell Automation, Inc. | 83,964 | 0.4 | 9,389,694 | ||
| The Boeing Co. | 404,675 | 2.1 | 52,882,929 | ||
| United Technologies Corp. | 510,900 | 1.9 | 46,803,549 | ||
| Other Securities | 0.3 | 6,421,265 | |||
| 12.1 | 302,852,197 | ||||
| Commercial & Professional Services 0.1% | |||||
| Other Securities | 0.1 | 2,008,784 | |||
| Consumer Durables & Apparel 0.7% | |||||
| Other Securities | 0.7 | 18,124,985 | |||
| Consumer Services 2.8% | |||||
| McDonald's Corp. | 594,078 | 2.3 | 56,449,292 | ||
| Other Securities | 0.5 | 13,329,745 | |||
| 2.8 | 69,779,037 | ||||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Diversified Financials 0.6% | |||||
| T. Rowe Price Group, Inc. | 161,200 | 0.5 | 11,587,056 | ||
| Other Securities | 0.1 | 4,137,992 | |||
| 0.6 | 15,725,048 | ||||
| Energy 11.7% | |||||
| Chevron Corp. | 1,162,182 | 3.8 | 94,125,120 | ||
| ConocoPhillips | 761,252 | 1.5 | 37,415,536 | ||
| Exxon Mobil Corp. | 1,427,801 | 4.3 | 107,427,747 | ||
| The Williams Cos., Inc. | 415,553 | 0.8 | 20,029,655 | ||
| Valero Energy Corp. | 319,021 | 0.8 | 18,930,706 | ||
| Other Securities | 0.5 | 14,663,900 | |||
| 11.7 | 292,592,664 | ||||
| Food & Staples Retailing 3.1% | |||||
| Sysco Corp. | 366,658 | 0.6 | 14,618,655 | ||
| Wal-Mart Stores, Inc. | 976,388 | 2.5 | 63,201,595 | ||
| 3.1 | 77,820,250 | ||||
| Food, Beverage & Tobacco 12.1% | |||||
| Altria Group, Inc. | 1,218,342 | 2.6 | 65,278,764 | ||
| General Mills, Inc. | 373,713 | 0.8 | 21,211,950 | ||
| Kellogg Co. | 155,261 | 0.4 | 10,290,699 | ||
| PepsiCo, Inc. | 916,705 | 3.4 | 85,189,396 | ||
| Reynolds American, Inc. | 190,519 | 0.6 | 15,955,966 | ||
| The Coca-Cola Co. | 2,430,552 | 3.8 | 95,569,305 | ||
| Other Securities | 0.5 | 8,865,286 | |||
| 12.1 | 302,361,366 | ||||
| Health Care Equipment & Services 0.8% | |||||
| Baxter International, Inc. | 334,212 | 0.5 | 12,850,452 | ||
| Other Securities | 0.3 | 6,913,697 | |||
| 0.8 | 19,764,149 | ||||
| Household & Personal Products 7.0% | |||||
| Colgate-Palmolive Co. | 528,393 | 1.3 | 33,188,364 | ||
| Kimberly-Clark Corp. | 225,733 | 1.0 | 24,047,337 | ||
| The Procter & Gamble Co. | 1,528,914 | 4.3 | 108,048,352 | ||
| Other Securities | 0.4 | 8,978,089 | |||
| 7.0 | 174,262,142 | ||||
| Insurance 1.2% | |||||
| Aflac, Inc. | 270,921 | 0.6 | 15,875,971 | ||
| Other Securities | 0.6 | 14,421,437 | |||
| 1.2 | 30,297,408 | ||||
| Materials 3.0% | |||||
| E.I. du Pont de Nemours & Co. | 561,291 | 1.2 | 28,906,487 | ||
| International Paper Co. | 262,638 | 0.5 | 11,330,203 | ||
| The Dow Chemical Co. | 672,493 | 1.2 | 29,428,294 | ||
| Other Securities | 0.1 | 4,731,831 | |||
| 3.0 | 74,396,815 | ||||
| Media 0.6% | |||||
| Omnicom Group, Inc. | 152,761 | 0.4 | 10,231,932 | ||
| Other Securities | 0.2 | 4,330,349 | |||
| 0.6 | 14,562,281 | ||||
64 See financial notes
Schwab U.S. Dividend Equity ETF
Condensed Portfolio Holdings continued
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Pharmaceuticals, Biotechnology & Life Sciences 11.2% | |||||
| Eli Lilly & Co. | 604,935 | 2.0 | 49,816,397 | ||
| Johnson & Johnson | 1,229,374 | 4.6 | 115,536,568 | ||
| Pfizer, Inc. | 3,542,544 | 4.6 | 114,140,768 | ||
| 11.2 | 279,493,733 | ||||
| Retailing 5.9% | |||||
| Target Corp. | 393,129 | 1.2 | 30,550,054 | ||
| The Home Depot, Inc. | 815,107 | 3.8 | 94,927,361 | ||
| Other Securities | 0.9 | 20,666,473 | |||
| 5.9 | 146,143,888 | ||||
| Semiconductors & Semiconductor Equipment 6.0% | |||||
| Analog Devices, Inc. | 193,285 | 0.4 | 10,796,900 | ||
| Intel Corp. | 2,925,446 | 3.3 | 83,492,229 | ||
| Texas Instruments, Inc. | 645,320 | 1.2 | 30,872,109 | ||
| Other Securities | 1.1 | 24,253,413 | |||
| 6.0 | 149,414,651 | ||||
| Software & Services 10.9% | |||||
| Accenture plc, Class A | 387,918 | 1.5 | 36,569,030 | ||
| Automatic Data Processing, Inc. | 293,190 | 0.9 | 22,669,451 | ||
| International Business Machines Corp. | 568,478 | 3.4 | 84,072,211 | ||
| Microsoft Corp. | 2,607,900 | 4.5 | 113,495,808 | ||
| Paychex, Inc. | 202,512 | 0.4 | 9,044,186 | ||
| Other Securities | 0.2 | 5,457,154 | |||
| 10.9 | 271,307,840 | ||||
| Technology Hardware & Equipment 2.5% | |||||
| QUALCOMM, Inc. | 1,019,371 | 2.3 | 57,676,011 | ||
| Other Securities | 0.2 | 5,950,708 | |||
| 2.5 | 63,626,719 | ||||
| Telecommunication Services 4.7% | |||||
| Verizon Communications, Inc. | 2,561,260 | 4.7 | 117,843,573 | ||
| Security | Number of Shares | % of Net Assets | Value ($) | ||
| Transportation 1.9% | |||||
| United Parcel Service, Inc., Class B | 430,162 | 1.7 | 42,005,319 | ||
| Other Securities | 0.2 | 5,996,011 | |||
| 1.9 | 48,001,330 | ||||
| Utilities 0.5% | |||||
| Other Securities | 0.5 | 12,686,117 | |||
| Total Common Stock | |||||
| (Cost $2,594,120,757) | 2,487,882,717 | ||||
| Other Investment Companies 0.0% of net assets | |||||
| Equity Fund 0.0% | |||||
| Other Securities | 0.0 | 566,775 | |||
| Money Market Fund 0.0% | |||||
| Other Securities | 0.0 | 281,867 | |||
| Total Other Investment Companies | |||||
| (Cost $839,284) | 848,642 | ||||
End of Investments.
At 08/31/15, the tax basis cost of the fund's investments was $2,595,093,098 and the unrealized appreciation and depreciation were $97,641,336 and ($204,003,075), respectively, with a net unrealized depreciation of ($106,361,739).
For the following notes, please refer to the complete schedule of portfolio holdings.
| (a) | The rate shown is the 7-day yield. |
| ETF — | Exchange Traded Fund |
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2015 (see financial note 2(a) for additional information):
| Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||
| Common Stock1 | $2,487,882,717 | $— | $— | $2,487,882,717 | |||||
| Other Investment Companies1 | 848,642 | — | — | 848,642 | |||||
| Total | $2,488,731,359 | $— | $— | $2,488,731,359 |
| 1 | As categorized in the complete schedule of 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, 2015.
See financial notes 65
Schwab U.S. Dividend Equity ETF
Statement of
Assets and Liabilities
As of August 31, 2015
| Assets | ||
| Investments, at value (cost $2,594,960,041) | $2,488,731,359 | |
| Receivables: | ||
| Investments sold | 568,985 | |
| Dividends | + | 12,220,349 |
| Total assets | 2,501,520,693 | |
| Liabilities | ||
| Payables: | ||
| Investments bought | 3,679,853 | |
| Investment adviser fees | + | 33,157 |
| Total liabilities | 3,713,010 | |
| Net Assets | ||
| Total assets | 2,501,520,693 | |
| Total liabilities | – | 3,713,010 |
| Net assets | $2,497,807,683 | |
| Net Assets by Source | ||
| Capital received from investors | 2,612,872,865 | |
| Net investment income not yet distributed | 15,960,054 | |
| Net realized capital losses | (24,796,554) | |
| Net unrealized capital depreciation | (106,228,682) | |
| Net Asset Value (NAV) | ||||
| Net Assets | ÷ | Shares Outstanding | = | NAV |
| $2,497,807,683 | 68,400,001 | $36.52 | ||
66 See financial notes
Schwab U.S. Dividend Equity ETF
Statement of
Operations
For the period September 1, 2014 through August 31, 2015
| Investment Income | ||
| Dividends | $81,793,574 | |
| Expenses | ||
| Investment adviser fees | 1,844,644 | |
| Total expenses | – | 1,844,644 |
| Net investment income | 79,948,930 | |
| Realized and Unrealized Gains (Losses) | ||
| Net realized losses on investments | (15,706,600) | |
| Net realized gains on in-kind redemptions | 234,095,564 | |
| Net realized gains on futures contracts | + | 188,024 |
| Net realized gains | 218,576,988 | |
| Net change in unrealized appreciation (depreciation) on investments | + | (396,180,173) |
| Net realized and unrealized losses | (177,603,185) | |
| Decrease in net assets resulting from operations | ($97,654,255) | |
See financial notes 67
Schwab U.S. Dividend Equity ETF
Statement of
Changes in Net Assets
For the current and prior report periods
| Operations | |||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||
| Net investment income | $79,948,930 | $48,439,591 | |
| Net realized gains | 218,576,988 | 51,936,047 | |
| Net change in unrealized appreciation (depreciation) | + | (396,180,173) | 188,477,636 |
| Increase (decrease) in net assets resulting from operations | (97,654,255) | 288,853,274 | |
| Distributions to Shareholders | |||
| Distributions from net investment income | ($74,347,401) | ($42,886,221) | |
| Transactions in Fund Shares | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | VALUE | SHARES | VALUE | ||
| Shares sold | 44,400,000 | $1,752,473,550 | 27,100,000 | $991,701,989 | |
| Shares redeemed | + | (29,350,000) | (1,157,995,283) | (8,350,000) | (304,028,292) |
| Net transactions in fund shares | 15,050,000 | $594,478,267 | 18,750,000 | $687,673,697 | |
| Shares Outstanding and Net Assets | |||||
| 9/1/14-8/31/15 | 9/1/13-8/31/14 | ||||
| SHARES | NET ASSETS | SHARES | NET ASSETS | ||
| Beginning of period | 53,350,001 | $2,075,331,072 | 34,600,001 | $1,141,690,322 | |
| Total increase | + | 15,050,000 | 422,476,611 | 18,750,000 | 933,640,750 |
| End of period | 68,400,001 | $2,497,807,683 | 53,350,001 | $2,075,331,072 | |
| Net investment income not yet distributed | $15,960,054 | $11,194,378 | |||
68 See financial notes
Schwab U.S. Equity ETFs
Financial Notes
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 Emerging Markets Equity ETF |
| Schwab U.S. Broad Market ETF | Schwab U.S. TIPS ETF |
| Schwab U.S. Large-Cap ETF | Schwab Short-Term U.S. Treasury ETF |
| Schwab U.S. Large-Cap Growth ETF | Schwab Intermediate-Term U.S. Treasury ETF |
| Schwab U.S. Large-Cap Value ETF | Schwab U.S. Aggregate Bond ETF |
| Schwab U.S. Mid-Cap ETF | Schwab Fundamental U.S. Broad Market Index ETF |
| Schwab U.S. Small-Cap ETF | Schwab Fundamental U.S. Large Company Index ETF |
| Schwab U.S. Dividend Equity ETF | Schwab Fundamental U.S. Small Company Index ETF |
| Schwab U.S. REIT ETF | Schwab Fundamental International Large Company Index ETF |
| Schwab International Equity ETF | Schwab Fundamental International Small Company Index ETF |
| Schwab International Small-Cap Equity ETF | Schwab Fundamental Emerging Markets Large Company Index ETF |
The funds issue and redeem shares at their net assets value per share (NAV) only in large blocks of shares, typically 50,000 shares or more (Creation Units). These transactions are usually in exchange for a basket of securities and/or an amount of cash. As a practical matter, only institutions or large investors purchase or redeem Creation Units. Except when aggregated in Creation Units, shares of the fund are not redeemable securities.
Individual shares of the funds trade on national securities exchanges and elsewhere during the trading day and can only be bought and sold at market prices throughout the trading day through a broker-dealer. Because fund shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board 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).
The funds invest in certain other investment companies (underlying funds). For specific investments in underlying funds, please refer to the complete schedule of portfolio holdings on Form N-CSR, which is filed with the U.S. Securities and Exchange Commission (SEC). For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the SEC.
(a) Security Valuation:
Under procedures approved by the funds’ Board of Trustees (the Board), the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair market value. Among other things, these procedures allow the funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:
• Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at halfway between the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.
69
Schwab U.S. Equity ETFs
Financial Notes (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 contracts are valued at their settlement prices as of the close of their exchanges.
• Short-term securities (60 days or less to maturity): A short-term security may be valued at its amortized cost when it approximates the security's 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 significant 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, without consideration to the classification level of the specific investments held by an underlying fund.
• 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
70
Schwab U.S. Equity ETFs
Financial Notes (continued)
2. Significant Accounting Policies (continued):
changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the funds’ results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the funds' investments as of August 31, 2015 are disclosed in the Condensed 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 contracts 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 each 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 value of the securities on loan and the related collateral as of August 31, 2015, if any, are disclosed in each fund's Condensed Portfolio Holdings. The value of the securities on loan and the investments of cash collateral are also disclosed in each fund's Statement of Assets and Liabilities.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
When a fund closes out a futures contract 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.
71
Schwab U.S. Equity ETFs
Financial Notes (continued)
2. Significant Accounting Policies (continued):
(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:
The funds make distributions from net investment income, if any, quarterly and from net realized capital gains, if any, once a year.
(g) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
(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 net realized capital gains, if any, to their respective shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax.
(i) Indemnification:
Under the funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss attributable to these arrangements to be remote.
(j) New Accounting Pronouncements:
In June 2014, Accounting Standards Update (ASU) No. 2014-11, Topic 806 Transfers and Servicing — Repurchase-to-Maturity Transactions, Repurchase Financings and Disclosures, was issued and is effective for interim periods beginning after March 15, 2015 and annual periods beginning after December 15, 2014. The ASU modifies accounting guidance and enhances disclosure requirements for repurchase agreement and securities lending transactions. Management is currently evaluating the impact the adoption of ASU 2014-11 may have on the funds’ financial statement disclosures.
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, the funds follow the securities included in the 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 the funds' expenses, the funds' performance may be below that of their respective index.
Certain funds primarily invest in dividend paying stocks. As a result, fund performance will correlate directly with the performance of the dividend paying stock segment of the stock market, and a fund may underperform funds that do not limit their investments to dividend paying stocks. If stocks held by a fund reduce or stop paying dividends, the fund’s ability to generate income may be affected.
72
Schwab U.S. Equity ETFs
Financial Notes (continued)
3. Risk Factors (continued):
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. 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. Historically, mid-cap stocks have been riskier than large-cap stocks. Mid-cap companies themselves may be more vulnerable to adverse business or economic events than larger, more established companies. Stock prices of mid-sized companies may be based in substantial part on future expectations rather than current achievements and may move sharply, especially during market upturns and downturns. During a period when mid-cap stocks fall behind other types of investments—bonds or large-cap stocks, for instance—a fund’s mid-cap holdings could reduce performance.
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.
Growth Investing Risk. Certain funds invest in growth stocks. Growth stocks can be volatile. Growth companies usually invest a high portion of earnings in their businesses and may lack the dividends of value stocks that can cushion stock prices in a falling market. The prices of growth stocks are based largely on projections of the issuer’s future earnings and revenues. If a company’s earnings or revenues fall short of expectations, its stock price may fall dramatically. Growth stocks may also be more expensive relative to their earnings or assets compared to value or other stocks.
Value Investing Risk. Certain funds emphasize a “value” style of investing, which targets undervalued companies with characteristics for improved valuations. This style of investing is subject to the risk that the valuations never improve or that the returns on “value” securities may not move in tandem with the returns on other styles of investing or the stock market in general.
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 the benchmark index, although it may not be successful in doing so. The divergence between the performance of a fund and the 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. The fund's use of derivatives could reduce the fund's performance, increase the
73
Schwab U.S. Equity ETFs
Financial Notes (continued)
3. Risk Factors (continued):
fund's volatility, and cause the fund to lose more than the initial amount invested. Furthermore, the use of derivatives subject to regulation by the Commodity Futures Trading Commission (CFTC) could cause the fund to become a commodity pool, which would require the fund to comply with certain CFTC rules.
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.
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.
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.
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 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. (See the unaudited Frequency Distribution of Discounts and Premiums in Other Information for an overview showing the frequency at which the daily closing price was at a discount or a premium to a fund's daily NAV.)
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 U.S. Broad Market ETF | Schwab U.S. Large-Cap ETF | Schwab U.S. Large-Cap Growth ETF | Schwab U.S. Large-Cap Value ETF | Schwab U.S. Mid-Cap ETF | Schwab U.S. Small-Cap ETF | Schwab U.S. Dividend Equity ETF | ||||||
| 0.04% | 0.04% | 0.07% | 0.07% | 0.07% | 0.08% | 0.07% |
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:
| Fund | Balance of Shares Held at 8/31/14 | Gross Purchases | Gross Sales | Balance of Shares Held at 8/31/15 | Market Value at 8/31/15 | Realized Gains (Losses) 9/1/14 to 8/31/15 | Dividends Received 9/1/14 to 8/31/15 | |||||||
| Schwab U.S. Broad Market ETF | 192,519 | 84,736 | (14,208) | 263,047 | $7,991,368 | $287,068 | $57,517 | |||||||
| Schwab U.S. Large-Cap ETF | 191,618 | 102,279 | (27,373) | 266,524 | 8,096,999 | 347,126 | 56,377 | |||||||
| Schwab U.S. Large-Cap Growth ETF | 175,888 | 130,092 | (32,094) | 273,886 | 8,320,657 | 263,641 | 55,572 |
74
Schwab U.S. Equity ETFs
Financial Notes (continued)
4. Affiliates and Affiliated Transactions (continued):
Certain Schwab funds may own shares of other Schwab funds. The table below reflects the percentages of shares of each fund in this report that are owned by other Schwab funds as of August 31, 2015, as applicable:
| Underlying Funds | ||||
| Schwab U.S. Large-Cap ETF | Schwab U.S. Small-Cap ETF | |||
| Schwab VIT Balanced Portfolio | 0.2% | 0.1% | ||
| Schwab VIT Balanced with Growth Portfolio | 0.6% | 0.2% | ||
| Schwab VIT Growth Portfolio | 0.8% | 0.3% | ||
Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions with other funds in the Fund Complex (for definition refer to Trustees and Officers section). All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds/portfolios. The interfund lending facility is subject to the oversight and periodic review of the Board. The funds had no interfund borrowing or lending activity during the period.
5. Other Service Providers:
SEI Investments Distribution Co. is the principal underwriter and distributor of shares of the funds.
State Street Bank and Trust Company (State Street) serves as the funds’ transfer agent. As part of these services, the transfer agent maintains records pertaining to the sale, redemption and transfer of the funds’ shares.
State Street also serves as custodian and accountant for the funds. The custodian is responsible for the daily safekeeping of securities and cash held by the funds. The funds’ accountant maintains all books and records related to the funds’ transactions.
6. Board of Trustees:
The Board may include people who are officers and/or directors of CSIM or its affiliates. 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 funds have access to custodian overdraft facilities. During the period, the funds also had access 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 an interest expense, which is disclosed on a fund's Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
Effective October 8, 2015, the existing line of credit was terminated and the funds became participants in a syndicated, committed line of credit of $530 million with State Street, as agent.
8. Derivatives:
Certain funds entered into equity index futures contracts during the report period. The fund invested in futures contracts to equitize available cash. The fair value and variation margin for futures contracts held at August 31, 2015 are presented on the Condensed Portfolio Holdings and Statement of Assets and Liabilities, respectively. The net realized and change in unrealized gains (losses) on futures contracts are presented on the Statement of Operations. Refer to financial note 2(b) for the fund’s
75
Schwab U.S. Equity ETFs
Financial Notes (continued)
8. Derivatives (continued):
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 U.S. Broad Market ETF | $3,980,677 | 39 | |
| Schwab U.S. Large-Cap ETF | 4,391,712 | 43 | |
| Schwab U.S. Large-Cap Growth ETF | 677,375 | 7 | |
| Schwab U.S. Large-Cap Value ETF | 17,120* | 1* | |
| Schwab U.S. Mid-Cap ETF | 1,761,189 | 17 | |
| Schwab U.S. Small-Cap ETF | 3,488,268 | 29 | |
| Schwab U.S. Dividend Equity ETF | 1,313,400* | 13* |
| * | During the period, the fund did not hold futures contracts at any month-end. The average value and number of contracts were calculated by aggregating the highest daily values held each month during the period. |
9. Purchases and Sales/Maturities of Investment Securities:
For the period ended August 31, 2015, purchases and sales/maturities of securities (excluding in-kind transactions and short-term obligations) were as follows:
| Purchases of Securities | Sales/Maturities of Securities | ||
| Schwab U.S. Broad Market ETF | $208,575,786 | $141,027,686 | |
| Schwab U.S. Large-Cap ETF | 199,721,798 | 152,250,447 | |
| Schwab U.S. Large-Cap Growth ETF | 252,800,424 | 199,070,175 | |
| Schwab U.S. Large-Cap Value ETF | 216,599,560 | 202,290,586 | |
| Schwab U.S. Mid-Cap ETF | 232,957,189 | 189,514,457 | |
| Schwab U.S. Small-Cap ETF | 313,457,568 | 233,959,432 | |
| Schwab U.S. Dividend Equity ETF | 504,732,724 | 497,962,216 |
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 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, 2015 were as follows:
| In-Kind Purchases of Securities | In-Kind Sales of Securities | ||
| Schwab U.S. Broad Market ETF | $1,609,563,059 | $280,676,033 | |
| Schwab U.S. Large-Cap ETF | 1,533,292,628 | 311,874,532 | |
| Schwab U.S. Large-Cap Growth ETF | 1,003,930,450 | 311,582,867 | |
| Schwab U.S. Large-Cap Value ETF | 548,435,956 | 192,162,652 | |
| Schwab U.S. Mid-Cap ETF | 880,329,414 | 216,310,060 | |
| Schwab U.S. Small-Cap ETF | 1,042,746,657 | 186,900,852 | |
| Schwab U.S. Dividend Equity ETF | 1,668,071,098 | 1,078,132,904 |
76
Schwab U.S. Equity ETFs
Financial Notes (continued)
10. In-Kind Transactions (continued):
For the period ended August 31, 2015, the funds realized net capital gains or losses resulting from in-kind redemptions of Creation Units. Because such gains or losses are not taxable to the funds and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to capital received from investors at the end of the funds' tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized in-kind gains or losses for the period ended August 31, 2015 are disclosed in the funds' Statements of Operations.
11. Federal Income Taxes
As of August 31, 2015, the components of distributable earnings on a tax-basis were as follows:
| Schwab U.S. Broad Market ETF | Schwab U.S. Large-Cap ETF | Schwab U.S. Large-Cap Growth ETF | Schwab U.S. Large-Cap Value ETF | Schwab U.S. Mid-Cap ETF | Schwab U.S. Small-Cap ETF | Schwab U.S. Dividend Equity ETF | |||||||
| Undistributed ordinary income | $15,617,403 | $15,533,235 | $3,986,797 | $7,079,782 | $1,630,917 | $4,717,033 | $15,960,054 | ||||||
| Undistributed long-term capital gains | — | — | — | — | — | — | — | ||||||
| Unrealized appreciation | 805,877,326 | 622,683,517 | 380,506,676 | 138,383,286 | 218,264,826 | 471,769,085 | 97,641,336 | ||||||
| Unrealized depreciation | (174,741,783) | (151,682,289) | (63,025,889) | (76,056,565) | (115,915,741) | (224,338,289) | (204,003,075) | ||||||
| Net unrealized appreciation (depreciation) | 631,135,543 | 471,001,228 | 317,480,787 | 62,326,721 | 102,349,085 | 247,430,796 | (106,361,739) |
The primary difference between book-basis and tax-basis unrealized appreciation or unrealized depreciation of investments is the tax deferral of losses on wash sales.
Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of August 31, 2015, the funds had capital loss carryforwards available to offset future net capital gains before the expiration dates as follows:
| Expiration Date | Schwab U.S. Broad Market ETF | Schwab U.S. Large-Cap ETF | Schwab U.S. Large-Cap Growth ETF | Schwab U.S. Large-Cap Value ETF | Schwab U.S. Mid-Cap ETF | Schwab U.S. Small-Cap ETF | Schwab U.S. Dividend Equity ETF | |||||||
| August 31, 2019 | $— | $721,062 | $631,601 | $295,384 | $218,695 | $927,631 | $— | |||||||
| No expiration* | 1,198,145 | 4,766,408 | — | 2,559,875 | 500,581 | 16,683,955 | 24,663,497 | |||||||
| Total | $1,198,145 | $5,487,470 | $631,601 | $2,855,259 | $719,276 | $17,611,586 | $24,663,497 |
| * | 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. |
For tax purposes, net realized capital losses and late-year ordinary losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. For the year ended August 31, 2015, the funds had no capital losses deferred and had capital loss carryforwards utilized as follows:
| Schwab U.S. Broad Market ETF | Schwab U.S. Large-Cap ETF | Schwab U.S. Large-Cap Growth ETF | Schwab U.S. Large-Cap Value ETF | Schwab U.S. Mid-Cap ETF | Schwab U.S. Small-Cap ETF | Schwab U.S. Dividend Equity ETF | |||||||
| Capital loss carryforwards utilized | $3,662,223 | $— | $7,653,867 | $— | $6,694,975 | $— | $— |
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Schwab U.S. Equity ETFs
Financial Notes (continued)
11. Federal Income Taxes (continued):
The tax-basis components of distributions paid during the current and prior fiscal years were:
| Schwab U.S. Broad Market ETF | Schwab U.S. Large-Cap ETF | Schwab U.S. Large-Cap Growth ETF | Schwab U.S. Large-Cap Value ETF | Schwab U.S. Mid-Cap ETF | Schwab U.S. Small-Cap ETF | Schwab U.S. Dividend Equity ETF | |||||||
| Current period distributions | |||||||||||||
| Ordinary income | $84,285,250 | $74,777,650 | $22,727,825 | $32,821,400 | $20,721,520 | $32,271,525 | $74,347,401 | ||||||
| Long-term capital gains | — | — | — | — | — | — | — | ||||||
| Prior period distributions | |||||||||||||
| Ordinary income | 53,302,780 | 44,577,680 | 13,914,310 | 21,232,840 | 14,140,400 | 27,201,420 | 42,886,221 | ||||||
| Long-term capital gains | — | — | — | — | — | — | — |
Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as short-term capital gains and losses, in-kind transactions, capital losses related to wash sales, and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes. The fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
The permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments have no impact on net assets or the results of operations. As of August 31, 2015, the funds made the following reclassifications:
| Schwab U.S. Broad Market ETF | Schwab U.S. Large-Cap ETF | Schwab U.S. Large-Cap Growth ETF | Schwab U.S. Large-Cap Value ETF | Schwab U.S. Mid-Cap ETF | Schwab U.S. Small-Cap ETF | Schwab U.S. Dividend Equity ETF | |||||||
| Capital shares | $131,659,359 | $139,267,009 | $101,393,278 | $61,452,844 | $73,303,091 | $72,647,002 | $234,237,111 | ||||||
| Undistributed net investment income | (933,806) | (749,166) | (255,105) | (350,056) | (984,343) | (656,310) | (835,853) | ||||||
| Net realized gains and losses | (130,725,553) | (138,517,843) | (101,138,173) | (61,102,788) | (72,318,748) | (71,990,692) | (233,401,258) |
For the period ended August 31, 2015, the following funds reclassified non-taxable security gains and losses realized on the in-kind redemption of Creation Units (Note 10) as an increase or decrease to capital received from investors in the Statement of Assets and Liabilities as follows:
| Schwab U.S. Broad Market ETF | Schwab U.S. Large-Cap ETF | Schwab U.S. Large-Cap Growth ETF | Schwab U.S. Large-Cap Value ETF | Schwab U.S. Mid-Cap ETF | Schwab U.S. Small-Cap ETF | Schwab U.S. Dividend Equity ETF | |||||||
| $131,258,184 | $139,163,818 | $101,367,173 | $61,436,196 | $73,137,909 | $71,857,698 | $234,095,564 |
As of August 31, 2015, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds' financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended August 31, 2015, the funds 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.
78
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of:
Schwab U.S. Broad Market ETF
Schwab U.S. Large-Cap ETF
Schwab U.S. Large-Cap Growth ETF
Schwab U.S. Large-Cap Value ETF
Schwab U.S. Mid-Cap ETF
Schwab U.S. Small-Cap ETF
Schwab U.S. Dividend Equity ETF
Schwab U.S. Broad Market ETF
Schwab U.S. Large-Cap ETF
Schwab U.S. Large-Cap Growth ETF
Schwab U.S. Large-Cap Value ETF
Schwab U.S. Mid-Cap ETF
Schwab U.S. Small-Cap ETF
Schwab U.S. Dividend Equity ETF
In our opinion, the accompanying statements of assets and liabilities, including the condensed portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Schwab U.S. Broad Market ETF, Schwab U.S. Large-Cap ETF, Schwab U.S. Large-Cap Growth ETF, Schwab U.S. Large-Cap Value ETF, Schwab U.S. Mid-Cap ETF, Schwab U.S. Small-Cap ETF and Schwab U.S. Dividend Equity ETF (seven of the funds constituting Schwab Strategic Trust, hereafter referred to as the “Funds”) at August 31, 2015, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
San Francisco, California
October 16, 2015
San Francisco, California
October 16, 2015
79
Other Federal Tax Information (unaudited)
For corporate shareholders, the following percentage of the funds’ dividend distributions paid during the period ended August 31, 2015 qualify for the corporate dividends received deduction:
| Schwab U.S. Broad Market ETF | 87.64% |
| Schwab U.S. Large-Cap ETF | 89.91% |
| Schwab U.S. Large-Cap Growth ETF | 81.97% |
| Schwab U.S. Large-Cap Value ETF | 96.70% |
| Schwab U.S. Mid-Cap ETF | 76.65% |
| Schwab U.S. Small-Cap ETF | 62.84% |
| Schwab U.S. Dividend Equity ETF | 100.00% |
For the period ended August 31, 2015, the funds designated the following amounts of the dividend distributions as qualified dividends for the purpose of the maximum rate under section 1(h)(ii) of the Internal Revenue Code. Shareholders will be notified in January 2016 via IRS form 1099 of the amount for use in preparing their 2015 income tax return.
| Schwab U.S. Broad Market ETF | $79,704,651 |
| Schwab U.S. Large-Cap ETF | 72,734,667 |
| Schwab U.S. Large-Cap Growth ETF | 13,743,922 |
| Schwab U.S. Large-Cap Value ETF | 32,430,126 |
| Schwab U.S. Mid-Cap ETF | 16,656,365 |
| Schwab U.S. Small-Cap ETF | 21,459,214 |
| Schwab U.S. Dividend Equity ETF | 74,347,401 |
80
Other Information (unaudited)
Frequency Distribution of Discounts and Premiums
Market Price vs. NAV as of August 31, 2015
Market Price vs. NAV as of August 31, 2015
The following charts are provided to show the frequency at which the daily closing market price on the NYSE Arca, Inc. (Exchange), the secondary market for shares of each fund, was at a discount or premium to such fund's daily NAV. The “Market Price” of each fund generally is determined using the midpoint between the highest bid and lowest offer on the Exchange, as of the time that the fund's NAV is calculated. The discount or premium is the percentage difference between the NAV and the Market Price of a fund. A discount is the amount that a fund is trading below the reported NAV, expressed as a percentage of NAV. A premium is the amount that a fund is trading above the reported NAV, expressed as a percentage of NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of each fund will fluctuate in accordance with changes in its NAV, as well as supply and demand. The data presented below represents past performance and can not be used to predict future results. The chart does not include days in which the NAV equals the Market Price.
| Number of Days Market Price Above NAV | Number of Days Market Price Below NAV | ||||||||||||||
| 1-49 Basis Points | 50-99 Basis Points | 100-199 Basis Points | >200 Basis Points | 1-49 Basis Points | 50-99 Basis Points | 100-199 Basis Points | >200 Basis Points | ||||||||
| Schwab U.S. Broad Market ETF | |||||||||||||||
| Commencement of trading | |||||||||||||||
| 11/3/09 through 8/31/15 | 1,043 | 1 | — | — | 250 | — | — | — | |||||||
| Schwab U.S. Large-Cap ETF | |||||||||||||||
| Commencement of trading | |||||||||||||||
| 11/3/09 through 8/31/15 | 998 | — | — | — | 285 | — | — | — | |||||||
| Schwab U.S. Large-Cap Growth ETF | |||||||||||||||
| Commencement of trading | |||||||||||||||
| 12/11/09 through 8/31/15 | 952 | — | 1 | — | 269 | — | — | — | |||||||
| Schwab U.S. Large-Cap Value ETF | |||||||||||||||
| Commencement of trading | |||||||||||||||
| 12/11/09 through 8/31/15 | 963 | — | — | — | 250 | — | — | — | |||||||
| Schwab U.S. Mid-Cap ETF | |||||||||||||||
| Commencement of trading | |||||||||||||||
| 1/13/11 through 8/31/15 | 895 | — | — | — | 176 | — | — | — | |||||||
| Schwab U.S. Small-Cap ETF | |||||||||||||||
| Commencement of trading | |||||||||||||||
| 11/3/09 through 8/31/15 | 947 | 1 | — | — | 417 | — | — | — | |||||||
| Schwab U.S. Dividend Equity ETF | |||||||||||||||
| Commencement of trading | |||||||||||||||
| 10/20/11 through 8/31/15 | 585 | — | — | — | 207 | — | — | — | |||||||
81
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 95 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, and Position(s) with the trust; (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
| Robert W. Burns 1959 Trustee (Trustee Schwab Strategic Trust since 2009) | Retired/Private Investor (Jan. 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 Schwab Strategic Trust since 2012) | CEO and Owner, Kochis Global (wealth management consulting) (May 2012 – present); Chairman and CEO, Aspiriant, LLC (wealth management) (Jan. 2008 – April 2012). | 21 | None |
| Charles A. Ruffel 1956 Trustee (Trustee Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2015) | Co-Chief Executive Officer, Kudu Investment Management, LLC (financial services) (Jan. 2015 – present); Partner, Kudu Advisors, LLC (financial services) (June 2008 – Jan. 2015); Advisor, Asset International, Inc. (publisher of financial services information) (Aug. 2008 – Jan. 2015). | 95 | None |
| Interested Trustees | |||
| Name, Year of Birth, and Position(s) with the trust; (Terms of office, and length of Time Served) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
| Walter W. Bettinger II2 1960 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust and Laudus Institutional Trust since 2010) | Director, President and Chief Executive Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (2008 – present); Director, Charles Schwab Bank (2006 – present); and Director, Schwab Holdings, Inc. (2008 – present). | 95 | Director, The Charles Schwab Corporation (2008 – present) |
82
| 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 since 2010) | 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; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (January 2011 – present); 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 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 Funds plc and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present). |
| Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer 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, Laudus Funds and Schwab ETFs (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 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, Laudus Funds and Schwab ETFs (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 since 2011) | Senior Vice President (Sept. 2011 – present), Vice President (March 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present), Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; 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 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. |
83
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. 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.
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 pass-throughs), 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.
dividend yield A stock’s indicated annual dividend divided by current price. At the portfolio level, it is the value-weighted average of the dividend yield of the securities in the portfolio.
Dow Jones U.S. Broad Stock Market Index An index that is a subset of the Dow Jones U.S. Total Stock Market Index, which measures all U.S. equity securities with readily available prices. The index includes approximately 2,500 stocks and is float-adjusted market cap weighted.
Dow Jones U.S. Dividend 100 Index An index that is designed to measure the performance of high dividend yielding stocks issued by U.S. companies that have a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios. The 100-component index is a subset of the Dow Jones U.S. Broad Market Index, excluding REITs, master limited partnerships, preferred stocks and convertibles. All index eligible stocks must have sustained at least 10 consecutive years of dividend payments, have a minimum float-adjusted market capitalization of $500 million and meet minimum liquidity criteria. The index is modified market capitalization weighted.
Dow Jones U.S. Large-Cap Growth Total Stock Market Index An index that includes the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index. The index is float-adjusted market capitalization weighted and includes components ranked 1-750 by full market capitalization and that are classified as “growth” based on a number of factors.
Dow Jones U.S. Large-Cap Total Stock Market Index An index that is a subset of the Dow Jones U.S. Total Stock Market Index, which measures all U.S. equity securities with readily available prices. The index represents the largest 750 stocks and is float-adjusted market cap weighted.
Dow Jones U.S. Large-Cap Value Total Stock Market Index An index that includes the large-cap value portion of the Dow Jones U.S. Total Stock Market Index. The index is float-adjusted market capitalization weighted and includes the components ranked 1-750 by full market capitalization and that are classified as “value” based on a number of factors.
Dow Jones U.S. Mid-Cap Total Stock Market Index is a subset of the Dow Jones U.S. Total Stock Market Index, which measures all U.S. equity securities with readily available prices. The index includes the components ranked 501-1000 by full market capitalization and is float-adjusted market cap weighted.
Dow Jones U.S. Small-Cap Total Stock Market Index is a subset of the Dow Jones U.S. Total Stock Market Index, which measures all U.S. equity securities with readily available prices. The index includes components ranked 751-2500 by full market capitalization and is float-adjusted market cap weighted.
Dow Jones U.S. Total Stock Market Index An index that measures all U.S. equity securities with readily available prices.
exchange A marketplace, or any organization or group that provides or maintains a marketplace for trading securities, options, futures, or commodities.
expense ratio The amount that is taken from the fund’s assets each year to cover the operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.
gross domestic product (GDP) The output of goods and services produced by labor and property located in the United States.
inception date The date that the shares began trading in the secondary market.
indicative optimized portfolio value (IOPV) A calculation disseminated by the stock exchange that approximates the fund’s NAV every 15 seconds throughout the trading day.
liquidity The ability to convert a security or asset quickly into cash.
84
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding. Free-float market capitalization is a variation of market capitalization that only includes shares generally available to the public, and excludes shares of a company held by entities such as the government. Modified market capitalization weighting represents a mix between conventional market capitalization weighting and equal weighting.
market price return The return based on the change in market price per share of the fund over a given time period. Market price returns assume that dividends and capital gain distributions have been reinvested in the fund at market price.
median market cap The midpoint of the range of market caps of the stocks held by a fund. There are different ways of calculating median market cap. With a simple median, half of the stocks in the fund’s portfolio would be larger than the median, and half would be smaller. With a weighted median (the type that is calculated for these funds), half of the fund’s assets are invested in stocks that are larger than the median market cap, and half in stocks that are smaller.
MSCI EAFE (Europe, Australasia, Far East) Index A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. 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.
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.
S&P 500 Index A market capitalization index that is designed to measure the performance of 500 leading publicly held companies in leading industries of the U.S. economy.
SEC yield A standard yield calculation developed by the Securities and Exchange Commission (SEC) that allows for fairer comparisons of bond funds. It is based on the most recent 30-day period covered by the fund’s filings with the SEC. The yield figure reflects the dividends and interest earned during the period, after the deduction of the fund’s expenses. This is also referred to as the “standardized yield.”
sampling If a fund uses a sampling method, the fund will not fully replicate the benchmark index and may hold securities not included in the index. A fund that utilizes a sampling approach may not track the return of the index.
secondary market The market in which investors purchase securities from other investors rather than directly from the issuing companies. Organized exchanges facilitate the trading of securities in the secondary market.
spread The gap between bid and ask prices of a security.
stock A share of ownership, or equity, in the issuing company.
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
tracking error The difference between the performance of the fund and its benchmark index, positive or negative.
85
PRIVACY NOTICE
THIS IS NOT PART OF THE SHAREHOLDER REPORT
THIS IS NOT PART OF THE SHAREHOLDER REPORT
A Commitment to Your Privacy
Your Privacy Is Not for Sale
We do not and will not sell your personal information to anyone, for any reason.
We are committed to protecting the privacy of information we maintain about you. Below are details about our commitment, including the types of information we collect and how we use and share that information. This Privacy Notice applies to you only if you are an individual who invests directly in the funds by placing orders through the funds’ transfer agent. If you place orders through your brokerage account at Charles Schwab & Co., Inc. or an account with another broker-dealer, investment advisor, 401(k) plan, employee benefit plan, administrator, bank or other financial intermediary, you are covered by the privacy policies of that financial institution and should consult those policies.
How We Collect Information About You
We collect personal information about you in a number of ways.
• APPLICATION AND REGISTRATION
INFORMATION.
INFORMATION.
We collect personal information from you when you open an account or utilize one of our services. We may also collect information about you from third parties such as consumer reporting agencies to verify your identity. The information we collect may include personal information, including your Social Security number, as well as details about your interests, investments and investment experience.
• TRANSACTION AND EXPERIENCE INFORMATION.
Once your account has been opened, we collect and maintain personal information about your account activity, including your transactions, balances, positions and history. This information allows us to administer your account and provide the services you have requested.
• WEBSITE USAGE.
When you visit our websites, we may use devices known as “cookies,” graphic interchange format files (GIFs), or other similar web tools to enhance your web experience. These
tools help us to recognize you, maintain your web session, and provide a more personalized experience. To learn more, please go to www.schwab.com/privacy.
How We Share and Use Your Information
We provide access to information about you to our affiliated companies, outside companies and other third parties in certain limited circumstances, including:
• to help us process transactions for your account;
• when we use other companies to provide services for us, such as printing and mailing your account statements;
• when we believe that disclosure is required or permitted under law (for example, to cooperate with regulators or law enforcement, resolve consumer disputes, perform credit/authentication checks, or for risk control).
State Laws
We will comply with state laws that apply to the disclosure or use of information about you.
Safeguarding Your Information — Security Is a Partnership
We take precautions to ensure the information we collect about you is protected and is accessed only by authorized individuals or organizations.
Companies we use to provide support services are not allowed to use information about our shareholders for their own purposes and are contractually obligated to maintain strict confidentiality. We limit their use of information to the performance of the specific services we have requested.
We restrict access to personal information by our employees and agents. Our employees are trained about privacy and are required to safeguard personal information.
We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.
Contact Us
To provide us with updated information, report suspected fraud or identity theft, or for any other questions, please call the number below.
Schwab ETF™ direct investors: 1-800-435-4000
© 2015 Schwab ETFs. All rights reserved.
86
Notes
Notes
Schwab ETFs™ 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.csimfunds.com/schwabetfs_prospectus, the SEC’s website at 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.csimfunds.com/schwabetfs_prospectus or the SEC’s website at www.sec.gov.
Schwab ETFs™
U.S. ETFs
Schwab U.S. Broad Market ETF™
Schwab U.S. Large-Cap ETF™
Schwab U.S. Large-Cap Growth ETF™
Schwab U.S. Large-Cap Value ETF™
Schwab U.S. Mid-Cap ETF™
Schwab U.S. Small-Cap ETF™
Schwab U.S. Dividend Equity ETF™
Schwab U.S. REIT ETF™
Schwab U.S. Large-Cap ETF™
Schwab U.S. Large-Cap Growth ETF™
Schwab U.S. Large-Cap Value ETF™
Schwab U.S. Mid-Cap ETF™
Schwab U.S. Small-Cap ETF™
Schwab U.S. Dividend Equity ETF™
Schwab U.S. REIT ETF™
International ETFs
Schwab International Equity ETF™
Schwab International Small-Cap Equity ETF™
Schwab Emerging Markets Equity ETF™
Schwab International Small-Cap Equity ETF™
Schwab Emerging Markets Equity ETF™
Fixed Income ETFs
Schwab U.S. Aggregate Bond ETF™
Schwab Short-Term U.S. Treasury ETF™
Schwab Intermediate-Term U.S. Treasury ETF™
Schwab U.S. TIPS ETF™
Schwab Short-Term U.S. Treasury ETF™
Schwab Intermediate-Term U.S. Treasury ETF™
Schwab U.S. TIPS ETF™
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
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
211 Main Street, San Francisco, CA 94105
Schwab ETFs™
1-800-435-4000
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
© 2015 Charles Schwab Investment Management, Inc. All rights reserved.
Printed on recycled paper.
© 2015 Charles Schwab Investment Management, Inc. All rights reserved.
Printed on recycled paper.
MFR57932-05
00153419
00153419
Table of Contents
Item 2: Code of Ethics.
| (a) | Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other persons who perform a similar function, regardless of whether these individuals are employed by Registrant or a third party. |
| (c) | During the period covered by the report, no amendments were made to the provisions of this code of ethics. |
| (d) | During the period covered by the report, Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics. |
| (f)(1) | Registrant has filed this code of ethics as an exhibit pursuant to Item 12(a)(1) of Form N-CSR. |
Item 3: Audit Committee Financial Expert.
Registrant’s Board of Trustees has determined that Robert W. Burns, currently serving on its audit committee, is an “audit committee financial expert,” as such term is defined in Item 3 of Form N-CSR. Each member of Registrant’s audit committee is “independent” under the standards set forth in Item 3 of Form N-CSR.
The designation of Mr. Burns as an “audit committee financial expert” pursuant to Item 3 of Form N-CSR does not (i) impose upon such individual any duties, obligations, or liability that are greater than the duties, obligations and liability imposed upon such individual as a member of Registrant’s audit committee or Board of Trustees in the absence of such designation; and (ii) affect the duties, obligations or liability of any other member of Registrant’s audit committee or Board of Trustees.
Item 4: Principal Accountant Fees and Services.
Registrant is composed of twenty-one series. Ten series have a fiscal year-end of August 31, whose annual financial statements are reported in Item 1, seven series have a fiscal year-end of February 28 and four series have a fiscal year-end of December 31. Principal accountant fees disclosed in Items 4(a)-(d) and 4(g) include fees billed for services rendered to each of the twenty-one series, based on their respective 2015 and 2014 fiscal years, as applicable.
The following table presents fees billed by the principal accountant in each of the last two fiscal years for the services rendered to the Funds:
Table of Contents
| (a) Audit Fees | (b) Audit-Related Fees1 | (c) Tax Fees2 | (d) All Other Fees3 | |||||||||||||||||||||||||
| Fiscal Year 2015 | Fiscal Year 2014 | Fiscal Year 2015 | Fiscal Year 2014 | Fiscal Year 2015 | Fiscal Year 2014 | Fiscal Year 2015 | Fiscal Year 2014 | |||||||||||||||||||||
| $454,657 | $ | 325,414 | $ | 0 | $ | 45,626 | $ | 100,482 | $ | 151,099 | None | None | ||||||||||||||||
| 1 | The nature of the services includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees. |
| 2 | The nature of the services includes tax compliance, tax advice and tax planning. |
| 3 | The nature of the services include agreed upon procedures relating to Charles Schwab Investment Management., Inc.’s, (“CSIM”) expenses for purposes of Section 15(c) of the Investment Company Act of 1940. |
(e)(1) Registrant’s audit committee does not have pre-approval policies and procedures as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) There were no services described in each of paragraphs (b) through (d) above (including services required to be approved by Registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by Registrant’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) Below are the aggregate non-audit fees billed in each of the last two fiscal years by Registrant’s principal accountant for services rendered to Registrant, to Registrant’s investment adviser, and to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant.
2015: $100,482 | 2014: $196,725 |
(h) During the past fiscal year, all non-audit services provided by Registrant’s principal accountant to either Registrant’s investment adviser or to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant were pre-approved. Included in the audit committee’s pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
The Registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act and has separately-designated standing audit committee established in accordance with Section 3(a)58)(A) of the Exchange Act. The Registrant’s audit committee has one member, Robert W. Burns.
Table of Contents
Item 6: Schedule of Investments.
The schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form. The schedules of investments for the Schwab International Equity ETF, Schwab International Small-Cap Equity ETF, Schwab Emerging Markets Equity ETF, Schwab U.S. Broad Market ETF, Schwab U.S. Large-Cap ETF, Schwab U.S. Large-Cap Growth ETF, Schwab U.S. Large-Cap Value ETF, Schwab U.S. Mid-Cap ETF, Schwab U.S. Small-Cap ETF, and Schwab U.S. Dividend Equity ETF are filed under this Item.
Table of Contents
Schwab International Equity ETF
Portfolio Holdings as of August 31, 2015
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 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.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.1% | Common Stock | 4,119,071,698 | 4,008,525,131 |
| 0.4% | Preferred Stock | 17,399,990 | 16,044,197 |
| 0.0% | Rights | — | 49,248 |
| 0.2% | Other Investment Companies | 6,997,929 | 6,997,929 |
| 99.7% | Total Investments | 4,143,469,617 | 4,031,616,505 |
| 0.3% | Other Assets and Liabilities, Net | 10,986,080 | |
| 100.0% | Net Assets | 4,042,602,585 | |
| Security | Number of Shares | Value ($) |
| Common Stock 99.1% of net assets | ||
| Australia 5.7% | ||
| Banks 1.9% | ||
| Australia & New Zealand Banking Group Ltd. | 787,934 | 15,601,857 |
| Bank of Queensland Ltd. | 86,537 | 777,309 |
| Bendigo & Adelaide Bank Ltd. | 133,104 | 1,035,174 |
| Commonwealth Bank of Australia | 450,750 | 23,992,501 |
| National Australia Bank Ltd. | 711,234 | 15,716,825 |
| Westpac Banking Corp. | 864,120 | 19,052,412 |
| 76,176,078 | ||
| Capital Goods 0.0% | ||
| CIMIC Group Ltd. | 22,656 | 376,011 |
| GWA Group Ltd. | 225,461 | 423,577 |
| 799,588 | ||
| Commercial & Professional Services 0.1% | ||
| ALS Ltd. | 67,968 | 253,940 |
| Brambles Ltd. | 413,750 | 2,886,347 |
| Downer EDI Ltd. | 196,824 | 505,129 |
| Recall Holdings Ltd. | 103,512 | 513,694 |
| Seek Ltd. | 80,712 | 706,104 |
| 4,865,214 | ||
| Consumer Services 0.1% | ||
| Aristocrat Leisure Ltd. | 125,390 | 750,276 |
| Crown Resorts Ltd. | 100,931 | 818,589 |
| Echo Entertainment Group Ltd. | 229,392 | 800,127 |
| Flight Centre Travel Group Ltd. | 19,824 | 520,147 |
| Tabcorp Holdings Ltd. | 121,299 | 398,156 |
| Tatts Group Ltd. | 383,736 | 1,001,143 |
| 4,288,438 | ||
| Security | Number of Shares | Value ($) |
| Diversified Financials 0.2% | ||
| ASX Ltd. | 69,739 | 1,949,971 |
| Challenger Ltd. | 133,104 | 674,703 |
| IOOF Holdings Ltd. | 120,360 | 764,550 |
| Macquarie Group Ltd. | 93,494 | 5,032,835 |
| Perpetual Ltd. | 7,080 | 216,535 |
| 8,638,594 | ||
| Energy 0.3% | ||
| Caltex Australia Ltd. | 66,274 | 1,497,880 |
| Oil Search Ltd. | 368,415 | 1,776,077 |
| Origin Energy Ltd. | 327,242 | 1,916,305 |
| Santos Ltd. | 254,880 | 926,976 |
| Whitehaven Coal Ltd. * | 364,282 | 300,870 |
| Woodside Petroleum Ltd. | 172,752 | 3,950,963 |
| 10,369,071 | ||
| Food & Staples Retailing 0.4% | ||
| Wesfarmers Ltd. | 315,907 | 9,106,304 |
| Woolworths Ltd. | 341,448 | 6,390,635 |
| 15,496,939 | ||
| Food, Beverage & Tobacco 0.1% | ||
| Coca-Cola Amatil Ltd. | 169,920 | 1,011,904 |
| Treasury Wine Estates Ltd. | 131,790 | 556,858 |
| 1,568,762 | ||
| Health Care Equipment & Services 0.1% | ||
| Ansell Ltd. | 28,320 | 444,314 |
| Cochlear Ltd. | 9,912 | 600,326 |
| Ramsay Health Care Ltd. | 42,480 | 1,881,057 |
| Sonic Healthcare Ltd. | 134,520 | 1,976,024 |
| 4,901,721 | ||
| Insurance 0.4% | ||
| AMP Ltd. | 807,165 | 3,404,825 |
| Insurance Australia Group Ltd. | 727,824 | 2,616,073 |
| Medibank Pvt Ltd. * | 878,535 | 1,451,211 |
| QBE Insurance Group Ltd. | 372,671 | 3,487,506 |
| Suncorp Group Ltd. | 359,805 | 3,272,724 |
| 14,232,339 | ||
| Materials 1.0% | ||
| Adelaide Brighton Ltd. | 160,008 | 511,604 |
| Alumina Ltd. | 557,904 | 518,139 |
| Amcor Ltd. | 407,951 | 3,968,054 |
| BHP Billiton Ltd. | 905,028 | 16,155,978 |
| BlueScope Steel Ltd. | 171,336 | 523,530 |
| Boral Ltd. | 211,059 | 843,915 |
| CSR Ltd. | 203,207 | 448,038 |
| DuluxGroup Ltd. | 97,704 | 389,975 |
| Fortescue Metals Group Ltd. (a) | 529,584 | 717,107 |
| Iluka Resources Ltd. | 171,336 | 902,512 |
| Incitec Pivot Ltd. | 549,408 | 1,367,155 |
| James Hardie Industries plc CDI | 108,150 | 1,347,143 |
| Newcrest Mining Ltd. * | 195,408 | 1,551,586 |
| Orica Ltd. | 97,704 | 1,098,578 |
| Orora Ltd. | 505,995 | 821,480 |
| OZ Minerals Ltd. | 143,016 | 381,231 |
| Rio Tinto Ltd. | 127,991 | 4,563,274 |
| Sims Metal Management Ltd. | 53,808 | 437,930 |
| South32 Ltd. * | 1,268,798 | 1,367,261 |
| 37,914,490 | ||
See financial notes 1
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Media 0.0% | ||
| Fairfax Media Ltd. | 798,887 | 484,247 |
| REA Group Ltd. | 9,912 | 290,290 |
| 774,537 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.2% | ||
| CSL Ltd. | 144,048 | 9,382,022 |
| Real Estate 0.5% | ||
| Dexus Property Group | 407,139 | 2,127,285 |
| Federation Centres | 691,718 | 1,387,813 |
| Goodman Group | 319,694 | 1,382,547 |
| Lend Lease Group | 199,697 | 1,973,558 |
| Mirvac Group | 916,152 | 1,136,635 |
| Scentre Group | 1,369,696 | 3,699,684 |
| Stockland | 828,360 | 2,296,209 |
| The GPT Group | 601,872 | 1,915,870 |
| Westfield Corp. | 572,064 | 3,954,256 |
| 19,873,857 | ||
| Retailing 0.0% | ||
| Harvey Norman Holdings Ltd. | 191,160 | 588,169 |
| Software & Services 0.0% | ||
| Computershare Ltd. | 181,248 | 1,272,108 |
| Telecommunication Services 0.1% | ||
| Telstra Corp., Ltd. | 1,173,864 | 4,801,856 |
| TPG Telecom Ltd. | 50,976 | 339,349 |
| 5,141,205 | ||
| Transportation 0.2% | ||
| Asciano Ltd. | 286,032 | 1,721,622 |
| Aurizon Holdings Ltd. | 510,144 | 1,793,866 |
| Macquarie Atlas Roads Group | 263,376 | 638,584 |
| Qantas Airways Ltd. * | 196,095 | 467,112 |
| Sydney Airport | 134,810 | 549,548 |
| Transurban Group | 636,231 | 4,366,221 |
| 9,536,953 | ||
| Utilities 0.1% | ||
| AGL Energy Ltd. | 249,538 | 2,988,009 |
| APA Group | 250,369 | 1,556,667 |
| AusNet Services | 325,680 | 301,312 |
| 4,845,988 | ||
| 230,666,073 | ||
| Austria 0.2% | ||
| Banks 0.1% | ||
| Erste Group Bank AG * | 82,508 | 2,455,015 |
| Capital Goods 0.0% | ||
| ANDRITZ AG | 20,704 | 991,054 |
| Energy 0.0% | ||
| OMV AG | 50,976 | 1,304,588 |
| Insurance 0.0% | ||
| Vienna Insurance Group AG Wiener Versicherung Gruppe | 12,744 | 417,251 |
| Materials 0.1% | ||
| voestalpine AG | 52,392 | 1,913,790 |
| 7,081,698 | ||
| Security | Number of Shares | Value ($) |
| Belgium 1.1% | ||
| Banks 0.1% | ||
| KBC Groep N.V. | 82,375 | 5,461,460 |
| Diversified Financials 0.0% | ||
| Groupe Bruxelles Lambert S.A. | 25,488 | 1,977,731 |
| Food & Staples Retailing 0.1% | ||
| Colruyt S.A. | 28,320 | 1,380,524 |
| Delhaize Group S.A. | 23,204 | 2,077,666 |
| 3,458,190 | ||
| Food, Beverage & Tobacco 0.6% | ||
| Anheuser-Busch InBev N.V. | 218,307 | 23,839,975 |
| Insurance 0.1% | ||
| Ageas | 56,794 | 2,322,774 |
| Materials 0.1% | ||
| Solvay S.A. | 13,118 | 1,541,895 |
| Umicore S.A. | 31,152 | 1,244,567 |
| 2,786,462 | ||
| Media 0.0% | ||
| Telenet Group Holding N.V. * | 21,240 | 1,195,682 |
| Pharmaceuticals, Biotechnology & Life Sciences 0.1% | ||
| UCB S.A. | 41,064 | 3,107,664 |
| Telecommunication Services 0.0% | ||
| Proximus | 55,224 | 1,985,990 |
| 46,135,928 | ||
| Canada 6.9% | ||
| Automobiles & Components 0.1% | ||
| Magna International, Inc. | 123,689 | 6,035,242 |
| Banks 1.9% | ||
| Bank of Montreal | 172,752 | 9,218,633 |
| Canadian Imperial Bank of Commerce | 114,247 | 8,302,550 |
| National Bank of Canada | 88,352 | 2,875,341 |
| Royal Bank of Canada | 394,384 | 21,739,288 |
| The Bank of Nova Scotia | 344,088 | 15,573,829 |
| The Toronto-Dominion Bank | 510,540 | 20,137,647 |
| 77,847,288 | ||
| Capital Goods 0.1% | ||
| Bombardier, Inc., B Shares | 495,600 | 480,514 |
| Finning International, Inc. | 70,950 | 1,189,699 |
| SNC-Lavalin Group, Inc. | 40,645 | 1,206,672 |
| 2,876,885 | ||
| Consumer Services 0.0% | ||
| Restaurant Brands International, Inc. | 51,399 | 1,950,110 |
| Diversified Financials 0.1% | ||
| CI Financial Corp. | 56,640 | 1,338,841 |
| IGM Financial, Inc. | 39,656 | 1,122,171 |
| 2,461,012 | ||
| Energy 1.4% | ||
| ARC Resources Ltd. | 77,136 | 1,146,749 |
| Cameco Corp. | 136,919 | 1,904,826 |
| Canadian Natural Resources Ltd. | 305,932 | 6,817,650 |
| Canadian Oil Sands Ltd. | 141,600 | 819,481 |
| Cenovus Energy, Inc. | 263,811 | 3,781,192 |
| Crescent Point Energy Corp. | 110,835 | 1,406,159 |
2 See financial notes
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Enbridge, Inc. | 237,173 | 9,691,917 |
| Encana Corp. | 216,931 | 1,602,730 |
| Husky Energy, Inc. | 93,879 | 1,653,202 |
| Imperial Oil Ltd. | 85,384 | 2,980,900 |
| Inter Pipeline Ltd. | 72,353 | 1,533,525 |
| MEG Energy Corp. * | 39,131 | 347,635 |
| Pembina Pipeline Corp. | 74,084 | 2,032,368 |
| Suncor Energy, Inc. | 394,001 | 11,033,805 |
| Tourmaline Oil Corp. * | 39,648 | 992,317 |
| TransCanada Corp. | 201,234 | 6,942,233 |
| 54,686,689 | ||
| Food & Staples Retailing 0.3% | ||
| Alimentation Couche-Tard, Inc., B Shares | 97,106 | 4,068,891 |
| George Weston Ltd. | 11,416 | 935,417 |
| Loblaw Cos. Ltd. | 72,624 | 3,832,888 |
| Metro, Inc. | 72,441 | 1,891,470 |
| 10,728,666 | ||
| Food, Beverage & Tobacco 0.0% | ||
| Saputo, Inc. | 88,074 | 2,005,744 |
| Insurance 0.6% | ||
| Fairfax Financial Holdings Ltd. | 4,857 | 2,233,234 |
| Great-West Lifeco, Inc. | 92,364 | 2,334,612 |
| Intact Financial Corp. | 29,944 | 2,049,155 |
| Manulife Financial Corp. | 505,544 | 8,123,661 |
| Power Corp. of Canada | 141,600 | 3,065,073 |
| Power Financial Corp. | 106,200 | 2,581,367 |
| Sun Life Financial, Inc. | 141,600 | 4,450,742 |
| 24,837,844 | ||
| Materials 0.6% | ||
| Agnico Eagle Mines Ltd. | 55,253 | 1,338,032 |
| Agrium, Inc. | 40,308 | 4,138,652 |
| Barrick Gold Corp. | 351,168 | 2,415,022 |
| First Quantum Minerals Ltd. | 191,861 | 989,227 |
| Franco-Nevada Corp. | 50,976 | 2,183,865 |
| Goldcorp, Inc. | 225,737 | 3,096,355 |
| Potash Corp. of Saskatchewan, Inc. | 240,990 | 6,205,425 |
| Silver Wheaton Corp. | 111,690 | 1,354,047 |
| Teck Resources Ltd., Class B | 174,331 | 1,238,202 |
| Turquoise Hill Resources Ltd. * | 185,496 | 549,308 |
| Yamana Gold, Inc. | 281,409 | 522,420 |
| 24,030,555 | ||
| Media 0.2% | ||
| Shaw Communications, Inc., B Shares | 141,600 | 2,812,843 |
| Thomson Reuters Corp. | 115,273 | 4,434,177 |
| 7,247,020 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.5% | ||
| Valeant Pharmaceuticals International, Inc. * | 86,930 | 19,926,930 |
| Real Estate 0.2% | ||
| Brookfield Asset Management, Inc., Class A | 253,648 | 7,894,449 |
| RioCan Real Estate Investment Trust | 84,357 | 1,541,314 |
| 9,435,763 | ||
| Retailing 0.1% | ||
| Canadian Tire Corp., Ltd., Class A | 22,656 | 2,114,901 |
| Security | Number of Shares | Value ($) |
| Software & Services 0.1% | ||
| CGI Group, Inc., Class A * | 92,155 | 3,366,203 |
| Technology Hardware & Equipment 0.0% | ||
| BlackBerry Ltd. * | 148,989 | 1,117,557 |
| Telecommunication Services 0.2% | ||
| BCE, Inc. | 75,048 | 3,000,792 |
| Rogers Communications, Inc., B Shares | 89,619 | 3,025,020 |
| TELUS Corp. | 45,139 | 1,460,190 |
| 7,486,002 | ||
| Transportation 0.4% | ||
| Canadian National Railway Co. | 208,668 | 11,481,837 |
| Canadian Pacific Railway Ltd. | 47,001 | 6,750,411 |
| 18,232,248 | ||
| Utilities 0.1% | ||
| Canadian Utilities Ltd., Class A | 63,720 | 1,741,824 |
| Fortis, Inc. | 66,854 | 1,793,325 |
| 3,535,149 | ||
| 279,921,808 | ||
| Denmark 1.6% | ||
| Banks 0.2% | ||
| Danske Bank A/S | 257,712 | 7,970,015 |
| Jyske Bank A/S - Reg’d * | 2,832 | 158,074 |
| 8,128,089 | ||
| Capital Goods 0.1% | ||
| Vestas Wind Systems A/S | 66,552 | 3,551,878 |
| Commercial & Professional Services 0.0% | ||
| ISS A/S | 28,320 | 985,942 |
| Consumer Durables & Apparel 0.1% | ||
| Pandora A/S | 32,343 | 3,731,483 |
| Food, Beverage & Tobacco 0.1% | ||
| Carlsberg A/S, B Shares | 38,232 | 2,881,297 |
| Health Care Equipment & Services 0.1% | ||
| Coloplast A/S, Class B | 35,425 | 2,409,690 |
| William Demant Holding A/S * | 8,496 | 689,394 |
| 3,099,084 | ||
| Materials 0.1% | ||
| Chr Hansen Holding A/S | 25,488 | 1,281,469 |
| Novozymes A/S, B Shares | 82,128 | 3,573,115 |
| 4,854,584 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.7% | ||
| Novo Nordisk A/S, B Shares | 525,205 | 29,110,379 |
| Telecommunication Services 0.0% | ||
| TDC A/S | 138,626 | 875,953 |
| Transportation 0.2% | ||
| AP Moller - Maersk A/S, A Shares | 800 | 1,334,324 |
| AP Moller - Maersk A/S, B Shares | 1,510 | 2,568,409 |
| DSV A/S | 69,384 | 2,474,931 |
| 6,377,664 | ||
| 63,596,353 | ||
| Finland 0.7% | ||
| Automobiles & Components 0.0% | ||
| Nokian Renkaat Oyj | 39,648 | 1,070,212 |
See financial notes 3
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Capital Goods 0.2% | ||
| Kone Oyj, B Shares | 116,366 | 4,600,091 |
| Metso Oyj | 12,789 | 315,262 |
| Wartsila Oyj Abp | 44,258 | 1,830,902 |
| 6,746,255 | ||
| Energy 0.0% | ||
| Neste Oyj | 53,808 | 1,379,477 |
| Food & Staples Retailing 0.0% | ||
| Kesko Oyj, B Shares | 16,992 | 610,598 |
| Insurance 0.1% | ||
| Sampo Oyj, A Shares | 112,700 | 5,433,842 |
| Materials 0.1% | ||
| Stora Enso Oyj, R Shares | 218,064 | 1,938,843 |
| UPM-Kymmene Oyj | 168,504 | 2,807,585 |
| 4,746,428 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.0% | ||
| Orion Oyj, Class B | 42,821 | 1,697,565 |
| Technology Hardware & Equipment 0.2% | ||
| Nokia Oyj | 1,059,461 | 6,624,161 |
| Utilities 0.1% | ||
| Fortum Oyj | 106,285 | 1,728,029 |
| 30,036,567 | ||
| France 8.1% | ||
| Automobiles & Components 0.4% | ||
| Cie Generale des Etablissements Michelin | 58,056 | 5,613,314 |
| Peugeot S.A. * | 113,803 | 1,963,750 |
| Renault S.A. | 52,719 | 4,376,616 |
| Valeo S.A. | 22,656 | 2,843,236 |
| 14,796,916 | ||
| Banks 0.8% | ||
| BNP Paribas S.A. | 267,042 | 16,837,136 |
| Credit Agricole S.A. | 307,272 | 4,160,843 |
| Natixis S.A. | 279,670 | 1,773,675 |
| Societe Generale S.A. | 199,656 | 9,721,513 |
| 32,493,167 | ||
| Capital Goods 1.3% | ||
| Airbus Group SE | 160,008 | 10,414,893 |
| Alstom S.A. * | 70,800 | 2,195,099 |
| Bouygues S.A. | 38,232 | 1,453,954 |
| Compagnie de Saint-Gobain | 130,272 | 5,979,650 |
| Eiffage S.A. | 5,664 | 362,703 |
| Legrand S.A. | 79,645 | 4,589,726 |
| Rexel S.A. | 59,472 | 911,280 |
| Safran S.A. | 87,792 | 6,848,582 |
| Schneider Electric SE | 154,473 | 9,749,987 |
| Thales S.A. | 21,240 | 1,461,522 |
| Vinci S.A. | 126,024 | 8,106,857 |
| Zodiac Aerospace | 56,640 | 1,720,222 |
| 53,794,475 | ||
| Commercial & Professional Services 0.1% | ||
| Bureau Veritas S.A. | 84,960 | 1,937,748 |
| Edenred | 56,640 | 1,199,808 |
| Societe BIC S.A. | 11,556 | 1,831,564 |
| 4,969,120 | ||
| Security | Number of Shares | Value ($) |
| Consumer Durables & Apparel 0.5% | ||
| Christian Dior SE | 10,638 | 1,971,548 |
| Hermes International | 7,096 | 2,517,705 |
| Kering | 18,432 | 3,154,753 |
| LVMH Moet Hennessy Louis Vuitton SE | 67,983 | 11,323,403 |
| 18,967,409 | ||
| Consumer Services 0.1% | ||
| Accor S.A. | 63,720 | 3,018,718 |
| Sodexo S.A. | 25,508 | 2,241,663 |
| 5,260,381 | ||
| Diversified Financials 0.1% | ||
| Eurazeo S.A. | 13,348 | 865,977 |
| Wendel S.A. | 9,912 | 1,270,016 |
| 2,135,993 | ||
| Energy 0.7% | ||
| Technip S.A. | 31,152 | 1,695,026 |
| Total S.A. | 559,891 | 25,599,330 |
| 27,294,356 | ||
| Food & Staples Retailing 0.2% | ||
| Carrefour S.A. | 175,584 | 5,701,578 |
| Casino Guichard Perrachon S.A. | 18,408 | 1,163,315 |
| 6,864,893 | ||
| Food, Beverage & Tobacco 0.4% | ||
| Danone S.A. | 148,086 | 9,190,880 |
| Pernod-Ricard S.A. | 59,507 | 6,235,687 |
| 15,426,567 | ||
| Health Care Equipment & Services 0.2% | ||
| BioMerieux | 5,664 | 640,997 |
| Essilor International S.A. | 61,017 | 7,274,518 |
| 7,915,515 | ||
| Household & Personal Products 0.3% | ||
| L'Oreal S.A. | 65,870 | 11,270,377 |
| Insurance 0.4% | ||
| AXA S.A. | 524,739 | 13,214,623 |
| CNP Assurances | 36,816 | 567,219 |
| SCOR SE | 39,648 | 1,396,740 |
| 15,178,582 | ||
| Materials 0.3% | ||
| Air Liquide S.A. | 99,414 | 11,902,380 |
| Arkema S.A. | 14,160 | 998,147 |
| Imerys S.A. | 9,912 | 682,710 |
| 13,583,237 | ||
| Media 0.5% | ||
| Eutelsat Communications S.A. | 35,400 | 1,066,015 |
| JCDecaux S.A. | 15,576 | 559,016 |
| Numericable-SFR SAS * | 34,264 | 1,760,118 |
| Publicis Groupe S.A. | 49,041 | 3,490,451 |
| SES S.A. | 94,872 | 2,814,400 |
| Societe Television Francaise 1 | 45,312 | 727,564 |
| Vivendi S.A. | 337,325 | 8,332,405 |
| 18,749,969 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.8% | ||
| Ipsen S.A. | 16,992 | 1,137,992 |
| Sanofi | 320,261 | 31,640,011 |
| 32,778,003 | ||
4 See financial notes
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Real Estate 0.1% | ||
| Fonciere Des Regions | 9,912 | 825,982 |
| Gecina S.A. | 14,160 | 1,783,369 |
| Klepierre | 36,209 | 1,591,241 |
| 4,200,592 | ||
| Semiconductors & Semiconductor Equipment 0.0% | ||
| STMicroelectronics N.V. | 202,488 | 1,468,644 |
| Software & Services 0.2% | ||
| Atos SE | 18,408 | 1,397,010 |
| Cap Gemini S.A. | 41,064 | 3,686,497 |
| Dassault Systemes S.A. | 42,540 | 2,950,052 |
| 8,033,559 | ||
| Technology Hardware & Equipment 0.1% | ||
| Alcatel-Lucent * | 828,360 | 2,778,962 |
| Ingenico Group | 12,717 | 1,573,133 |
| 4,352,095 | ||
| Telecommunication Services 0.2% | ||
| Iliad S.A. | 5,664 | 1,277,553 |
| Orange S.A. | 533,832 | 8,428,054 |
| 9,705,607 | ||
| Transportation 0.1% | ||
| Aeroports de Paris | 11,328 | 1,299,131 |
| Air France-KLM * | 47,151 | 326,400 |
| Bollore S.A. | 283,200 | 1,528,874 |
| Groupe Eurotunnel SE - Reg'd | 139,689 | 1,888,432 |
| 5,042,837 | ||
| Utilities 0.3% | ||
| Electricite de France S.A. | 83,544 | 1,805,756 |
| Engie | 369,576 | 6,619,545 |
| Suez Environnement Co. | 107,616 | 1,939,589 |
| Veolia Environnement S.A. | 137,352 | 3,008,801 |
| 13,373,691 | ||
| 327,655,985 | ||
| Germany 7.2% | ||
| Automobiles & Components 0.9% | ||
| Bayerische Motoren Werke AG | 86,848 | 8,001,087 |
| Continental AG | 29,736 | 6,312,318 |
| Daimler AG - Reg'd | 263,957 | 21,194,429 |
| Volkswagen AG | 10,716 | 2,001,613 |
| 37,509,447 | ||
| Banks 0.1% | ||
| Commerzbank AG * | 310,104 | 3,471,934 |
| Capital Goods 0.7% | ||
| Brenntag AG | 31,405 | 1,744,685 |
| GEA Group AG | 60,888 | 2,374,230 |
| HOCHTIEF AG | 18,408 | 1,552,737 |
| MAN SE | 9,339 | 978,416 |
| MTU Aero Engines AG | 4,654 | 416,559 |
| OSRAM Licht AG | 24,072 | 1,272,031 |
| Siemens AG - Reg'd | 218,756 | 21,682,963 |
| 30,021,621 | ||
| Security | Number of Shares | Value ($) |
| Consumer Durables & Apparel 0.2% | ||
| adidas AG | 55,963 | 4,183,779 |
| HUGO BOSS AG | 10,986 | 1,254,369 |
| Puma SE | 2,832 | 567,061 |
| 6,005,209 | ||
| Diversified Financials 0.4% | ||
| Deutsche Bank AG - Reg'd | 400,846 | 11,801,359 |
| Deutsche Boerse AG | 55,254 | 4,939,965 |
| 16,741,324 | ||
| Food & Staples Retailing 0.0% | ||
| METRO AG | 56,640 | 1,651,997 |
| Health Care Equipment & Services 0.4% | ||
| Celesio AG | 24,072 | 672,833 |
| Fresenius Medical Care AG & Co. KGaA | 66,552 | 5,086,521 |
| Fresenius SE & Co. KGaA | 118,944 | 8,403,097 |
| 14,162,451 | ||
| Household & Personal Products 0.1% | ||
| Beiersdorf AG | 22,656 | 1,872,982 |
| Henkel AG & Co. KGaA | 41,064 | 3,764,718 |
| 5,637,700 | ||
| Insurance 0.8% | ||
| Allianz SE - Reg'd | 127,440 | 20,312,799 |
| Hannover Rueck SE | 18,408 | 1,869,142 |
| Muenchener Rueckversicherungs-Gesellschaft AG - Reg'd | 46,039 | 8,449,899 |
| 30,631,840 | ||
| Materials 1.1% | ||
| BASF SE | 255,174 | 20,534,945 |
| Evonik Industries AG | 10,721 | 398,888 |
| Fuchs Petrolub SE | 14,160 | 552,940 |
| HeidelbergCement AG | 47,485 | 3,584,018 |
| K+S AG - Reg'd | 56,648 | 2,115,908 |
| LANXESS AG | 22,656 | 1,149,988 |
| Linde AG | 50,424 | 8,751,861 |
| Symrise AG | 33,600 | 2,025,128 |
| ThyssenKrupp AG | 133,744 | 2,896,047 |
| Wacker Chemie AG | 5,664 | 488,174 |
| 42,497,897 | ||
| Media 0.1% | ||
| Axel Springer SE | 16,992 | 1,027,563 |
| Kabel Deutschland Holding AG * | 11,363 | 1,538,691 |
| ProSiebenSat.1 Media SE | 50,482 | 2,455,207 |
| RTL Group S.A. | 9,912 | 862,189 |
| 5,883,650 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.9% | ||
| Bayer AG - Reg'd | 233,093 | 31,589,797 |
| Merck KGaA | 36,816 | 3,517,585 |
| QIAGEN N.V. * | 66,552 | 1,757,277 |
| 36,864,659 | ||
| Real Estate 0.1% | ||
| Deutsche Wohnen AG | 73,380 | 1,927,290 |
| Retailing 0.0% | ||
| Fielmann AG | 8,496 | 559,857 |
| Semiconductors & Semiconductor Equipment 0.1% | ||
| Infineon Technologies AG | 329,928 | 3,605,900 |
See financial notes 5
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Software & Services 0.5% | ||
| SAP SE | 253,678 | 17,051,924 |
| United Internet AG - Reg'd | 27,146 | 1,318,428 |
| Wirecard AG | 45,312 | 1,884,406 |
| 20,254,758 | ||
| Telecommunication Services 0.4% | ||
| Deutsche Telekom AG - Reg'd | 862,970 | 14,741,268 |
| Telefonica Deutschland Holding AG | 110,838 | 673,504 |
| 15,414,772 | ||
| Transportation 0.2% | ||
| Deutsche Lufthansa AG - Reg'd * | 63,720 | 775,028 |
| Deutsche Post AG - Reg'd | 249,216 | 6,856,896 |
| Fraport AG Frankfurt Airport Services Worldwide | 12,744 | 769,388 |
| 8,401,312 | ||
| Utilities 0.2% | ||
| E.ON SE | 559,320 | 6,332,984 |
| RWE AG | 140,184 | 2,104,035 |
| 8,437,019 | ||
| 289,680,637 | ||
| Greece 0.0% | ||
| Banks 0.0% | ||
| Alpha Bank AE * | 579,607 | 54,554 |
| National Bank of Greece S.A. * | 392,438 | 228,658 |
| Piraeus Bank S.A. * | 292,888 | 28,223 |
| 311,435 | ||
| Consumer Services 0.0% | ||
| OPAP S.A. | 30,562 | 239,713 |
| Telecommunication Services 0.0% | ||
| Hellenic Telecommunications Organization S.A. | 56,631 | 517,159 |
| 1,068,307 | ||
| Hong Kong 3.1% | ||
| Automobiles & Components 0.0% | ||
| Xinyi Glass Holdings Ltd. | 639,106 | 286,977 |
| Banks 0.2% | ||
| BOC Hong Kong Holdings Ltd. | 1,200,241 | 4,057,563 |
| Hang Seng Bank Ltd. | 266,964 | 4,750,206 |
| The Bank of East Asia Ltd. | 356,912 | 1,227,309 |
| 10,035,078 | ||
| Capital Goods 0.4% | ||
| CK Hutchison Holdings Ltd. | 762,185 | 10,159,123 |
| Hopewell Holdings Ltd. | 315,426 | 1,076,511 |
| Jardine Matheson Holdings Ltd. | 65,494 | 3,270,770 |
| Jardine Strategic Holdings Ltd. | 67,038 | 1,912,594 |
| Johnson Electric Holdings Ltd. | 283,450 | 982,011 |
| Shun Tak Holdings Ltd. | 409,334 | 179,578 |
| 17,580,587 | ||
| Consumer Durables & Apparel 0.2% | ||
| Li & Fung Ltd. | 1,555,255 | 1,025,458 |
| Prada S.p.A. (a) | 82,704 | 335,083 |
| Samsonite International S.A. | 426,706 | 1,329,662 |
| Techtronic Industries Co., Ltd. | 430,018 | 1,556,378 |
| Security | Number of Shares | Value ($) |
| Texwinca Holdings Ltd. | 151,036 | 143,824 |
| Yue Yuen Industrial Holdings Ltd. | 476,705 | 1,706,901 |
| 6,097,306 | ||
| Consumer Services 0.2% | ||
| China Travel International Investment Hong Kong Ltd. | 1,524,308 | 531,046 |
| Galaxy Entertainment Group Ltd. | 605,134 | 1,940,320 |
| Melco International Development Ltd. (a) | 146,818 | 228,087 |
| MGM China Holdings Ltd. | 215,712 | 356,827 |
| Sands China Ltd. | 634,988 | 2,204,009 |
| Shangri-La Asia Ltd. | 67,082 | 65,870 |
| SJM Holdings Ltd. | 319,350 | 288,855 |
| Wynn Macau Ltd. (a) | 566,400 | 874,078 |
| 6,489,092 | ||
| Diversified Financials 0.2% | ||
| Hong Kong Exchanges & Clearing Ltd. | 347,382 | 8,166,786 |
| Energy 0.0% | ||
| Brightoil Petroleum Holdings Ltd. * | 2,454,499 | 807,604 |
| Food, Beverage & Tobacco 0.1% | ||
| China Mengniu Dairy Co., Ltd. | 462,356 | 1,616,744 |
| Tingyi Cayman Islands Holding Corp. | 478,280 | 735,621 |
| Want Want China Holdings Ltd. (a) | 1,722,696 | 1,389,262 |
| 3,741,627 | ||
| Insurance 0.5% | ||
| AIA Group Ltd. | 3,431,938 | 18,975,173 |
| Materials 0.0% | ||
| Huabao International Holdings Ltd. | 510,160 | 169,833 |
| Shougang Fushan Resources Group Ltd. (a) | 723,060 | 91,432 |
| United Co. RUSAL plc *(a) | 539,686 | 233,978 |
| 495,243 | ||
| Media 0.0% | ||
| Television Broadcasts Ltd. | 141,600 | 531,682 |
| Real Estate 0.8% | ||
| Cheung Kong Property Holdings Ltd. * | 729,446 | 5,110,795 |
| Great Eagle Holdings Ltd. | 69,894 | 217,346 |
| Hang Lung Properties Ltd. | 455,326 | 1,028,149 |
| Henderson Land Development Co., Ltd. | 299,887 | 1,847,679 |
| Hongkong Land Holdings Ltd. | 271,952 | 1,881,908 |
| Hysan Development Co., Ltd. | 148,224 | 596,717 |
| Kerry Properties Ltd. | 186,186 | 557,353 |
| Link REIT | 708,000 | 3,754,660 |
| New World China Land Ltd. | 445,484 | 270,163 |
| New World Development Co., Ltd. | 1,416,000 | 1,439,743 |
| Shui On Land Ltd. | 2,124,000 | 465,907 |
| Sino Land Co., Ltd. | 667,226 | 991,793 |
| Sun Hung Kai Properties Ltd. | 461,315 | 5,845,270 |
| Swire Pacific Ltd., Class A | 197,434 | 2,166,665 |
| Swire Properties Ltd. | 566,400 | 1,732,076 |
| The Wharf Holdings Ltd. | 445,656 | 2,515,784 |
| Wheelock & Co., Ltd. | 167,908 | 761,539 |
| 31,183,547 | ||
6 See financial notes
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Retailing 0.0% | ||
| Chow Tai Fook Jewellery Group Ltd. (a) | 571,618 | 506,708 |
| Esprit Holdings Ltd. (a) | 708,000 | 593,803 |
| L'Occitane International S.A. | 163,880 | 371,318 |
| Parkson Retail Group Ltd. | 1,524,308 | 218,319 |
| Sa Sa International Holdings Ltd. (a) | 641,918 | 268,361 |
| 1,958,509 | ||
| Semiconductors & Semiconductor Equipment 0.0% | ||
| ASM Pacific Technology Ltd. | 53,322 | 413,157 |
| Semiconductor Manufacturing International Corp. * | 9,418,053 | 826,353 |
| Xinyi Solar Holdings Ltd. (a) | 639,106 | 213,583 |
| 1,453,093 | ||
| Technology Hardware & Equipment 0.1% | ||
| AAC Technologies Holdings, Inc. (a) | 249,456 | 1,404,992 |
| FIH Mobile Ltd. | 1,416,000 | 630,344 |
| VTech Holdings Ltd. | 54,328 | 628,448 |
| 2,663,784 | ||
| Telecommunication Services 0.0% | ||
| PCCW Ltd. | 1,416,000 | 747,278 |
| Transportation 0.1% | ||
| MTR Corp., Ltd. | 642,349 | 2,863,615 |
| Utilities 0.3% | ||
| Cheung Kong Infrastructure Holdings Ltd. | 170,924 | 1,409,287 |
| CLP Holdings Ltd. | 349,782 | 2,895,274 |
| Hong Kong & China Gas Co., Ltd. | 2,063,834 | 3,893,298 |
| Power Assets Holdings Ltd. | 283,700 | 2,441,634 |
| 10,639,493 | ||
| 124,716,474 | ||
| Ireland 0.3% | ||
| Banks 0.1% | ||
| Bank of Ireland * | 7,563,903 | 3,008,749 |
| Food, Beverage & Tobacco 0.1% | ||
| Kerry Group plc, A Shares | 43,896 | 3,263,455 |
| Materials 0.1% | ||
| Smurfit Kappa Group plc | 73,378 | 2,167,731 |
| Transportation 0.0% | ||
| Ryanair Holdings plc | 141,222 | 1,944,760 |
| 10,384,695 | ||
| Israel 0.7% | ||
| Banks 0.1% | ||
| Bank Hapoalim B.M. | 322,848 | 1,633,832 |
| Bank Leumi Le-Israel * | 373,124 | 1,357,160 |
| First International Bank of Israel Ltd. | 38,232 | 476,169 |
| Israel Discount Bank Ltd., A Shares * | 259,134 | 478,846 |
| Mizrahi Tefahot Bank Ltd. | 31,152 | 361,939 |
| 4,307,946 | ||
| Energy 0.0% | ||
| Delek Group Ltd. | 1,416 | 332,923 |
| Security | Number of Shares | Value ($) |
| Food, Beverage & Tobacco 0.0% | ||
| Osem Investments Ltd. | 18,408 | 346,754 |
| Materials 0.0% | ||
| Israel Chemicals Ltd. | 144,432 | 811,323 |
| The Israel Corp., Ltd. | 1,416 | 427,940 |
| 1,239,263 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.5% | ||
| Teva Pharmaceutical Industries Ltd. | 270,980 | 17,701,432 |
| Real Estate 0.0% | ||
| Azrieli Group | 11,328 | 445,720 |
| Gazit-Globe Ltd. | 21,240 | 217,785 |
| 663,505 | ||
| Software & Services 0.0% | ||
| NICE-Systems Ltd. | 14,160 | 884,314 |
| Telecommunication Services 0.1% | ||
| Bezeq The Israeli Telecommunication Corp., Ltd. | 747,840 | 1,340,286 |
| Utilities 0.0% | ||
| Kenon Holdings Ltd. * | 9,449 | 132,095 |
| 26,948,518 | ||
| Italy 2.2% | ||
| Automobiles & Components 0.2% | ||
| Fiat Chrysler Automobiles N.V. * | 251,169 | 3,529,192 |
| Pirelli & C. S.p.A. | 128,856 | 2,157,084 |
| 5,686,276 | ||
| Banks 0.6% | ||
| Banca Monte dei Paschi di Siena S.p.A. * | 649,215 | 1,362,505 |
| Banco Popolare SC * | 110,842 | 1,902,720 |
| Intesa Sanpaolo S.p.A. | 3,438,048 | 12,535,487 |
| UniCredit S.p.A. | 1,232,123 | 8,048,859 |
| Unione di Banche Italiane S.C.p.A. | 230,808 | 1,799,997 |
| 25,649,568 | ||
| Capital Goods 0.1% | ||
| CNH Industrial N.V. | 250,632 | 1,977,065 |
| Finmeccanica S.p.A. * | 87,792 | 1,187,337 |
| Prysmian S.p.A. | 49,125 | 1,049,699 |
| 4,214,101 | ||
| Consumer Durables & Apparel 0.1% | ||
| Luxottica Group S.p.A. | 58,627 | 3,967,769 |
| Diversified Financials 0.1% | ||
| EXOR S.p.A. | 39,648 | 1,820,116 |
| Mediobanca S.p.A. | 165,672 | 1,661,437 |
| 3,481,553 | ||
| Energy 0.3% | ||
| Eni S.p.A. | 696,672 | 11,420,481 |
| Saipem S.p.A. * | 52,591 | 505,899 |
| Tenaris S.A. | 130,272 | 1,690,329 |
| 13,616,709 | ||
| Food, Beverage & Tobacco 0.0% | ||
| Parmalat S.p.A. | 136,473 | 353,852 |
See financial notes 7
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Insurance 0.2% | ||
| Assicurazioni Generali S.p.A. | 348,336 | 6,373,768 |
| Mediolanum S.p.A. | 67,666 | 533,771 |
| UnipolSai S.p.A. | 126,024 | 288,351 |
| 7,195,890 | ||
| Media 0.0% | ||
| Mediaset S.p.A. | 247,800 | 1,186,163 |
| Telecommunication Services 0.2% | ||
| Telecom Italia S.p.A. * | 3,105,748 | 3,768,829 |
| Telecom Italia S.p.A. - RSP | 1,835,136 | 1,837,276 |
| 5,606,105 | ||
| Transportation 0.1% | ||
| Atlantia S.p.A. | 143,170 | 3,827,667 |
| Utilities 0.3% | ||
| Enel Green Power S.p.A. | 143,016 | 272,424 |
| Enel S.p.A. | 1,908,262 | 8,587,039 |
| Snam S.p.A. | 482,856 | 2,360,016 |
| Terna Rete Elettrica Nazionale S.p.A. | 443,208 | 2,063,930 |
| 13,283,409 | ||
| 88,069,062 | ||
| Japan 21.9% | ||
| Automobiles & Components 2.8% | ||
| Aisin Seiki Co., Ltd. | 45,771 | 1,654,305 |
| Bridgestone Corp. | 187,552 | 6,295,068 |
| Daihatsu Motor Co., Ltd. | 121,938 | 1,492,215 |
| Denso Corp. | 141,600 | 6,343,577 |
| Fuji Heavy Industries Ltd. | 169,114 | 5,959,495 |
| Honda Motor Co., Ltd. | 490,558 | 15,479,587 |
| Isuzu Motors Ltd. | 171,768 | 1,958,142 |
| Koito Manufacturing Co., Ltd. | 22,190 | 761,731 |
| KYB Co., Ltd. | 107,856 | 318,624 |
| Mazda Motor Corp. | 143,836 | 2,481,241 |
| Mitsubishi Motors Corp. | 142,100 | 1,091,679 |
| NGK Spark Plug Co., Ltd. | 61,458 | 1,512,297 |
| Nissan Motor Co., Ltd. | 708,000 | 6,409,011 |
| NOK Corp. | 61,358 | 1,518,950 |
| Stanley Electric Co., Ltd. | 48,504 | 945,785 |
| Sumitomo Electric Industries Ltd. | 283,200 | 3,895,650 |
| Sumitomo Rubber Industries Ltd. | 86,070 | 1,220,186 |
| Suzuki Motor Corp. | 141,600 | 4,825,162 |
| Toyota Industries Corp. | 38,762 | 1,928,744 |
| Toyota Motor Corp. | 745,526 | 44,244,940 |
| Yamaha Motor Co., Ltd. | 92,590 | 1,790,142 |
| 112,126,531 | ||
| Banks 2.2% | ||
| Aozora Bank Ltd. | 416,364 | 1,525,483 |
| Fukuoka Financial Group, Inc. | 263,973 | 1,313,494 |
| Hokuhoku Financial Group, Inc. | 691,128 | 1,562,644 |
| Mitsubishi UFJ Financial Group, Inc. | 4,118,148 | 27,189,258 |
| Mizuho Financial Group, Inc. | 7,080,000 | 14,529,818 |
| North Pacific Bank Ltd. | 283,200 | 1,140,418 |
| Resona Holdings, Inc. | 708,000 | 3,586,008 |
| Seven Bank Ltd. | 141,600 | 605,263 |
| Shinsei Bank Ltd. | 491,882 | 1,063,441 |
| Sumitomo Mitsui Financial Group, Inc. | 377,196 | 15,450,765 |
| Security | Number of Shares | Value ($) |
| Sumitomo Mitsui Trust Holdings, Inc. | 1,349,016 | 5,579,295 |
| Suruga Bank Ltd. | 55,834 | 1,071,666 |
| The 77 Bank Ltd. | 67,082 | 398,003 |
| The Bank of Kyoto Ltd. | 116,292 | 1,263,824 |
| The Bank of Yokohama Ltd. | 505,287 | 3,095,474 |
| The Chiba Bank Ltd. | 181,968 | 1,328,891 |
| The Chugoku Bank Ltd. | 47,398 | 703,627 |
| The Gunma Bank Ltd. | 147,093 | 984,383 |
| The Hachijuni Bank Ltd. | 183,374 | 1,268,040 |
| The Hiroshima Bank Ltd. | 186,704 | 1,056,888 |
| The Iyo Bank Ltd. | 141,600 | 1,589,108 |
| The Joyo Bank Ltd. | 191,810 | 1,027,229 |
| The Juroku Bank Ltd. | 145,412 | 595,159 |
| The Shiga Bank Ltd. | 81,142 | 415,134 |
| The Shizuoka Bank Ltd. | 153,848 | 1,624,998 |
| Yamaguchi Financial Group, Inc. | 72,311 | 893,855 |
| 90,862,166 | ||
| Capital Goods 2.7% | ||
| Amada Holdings Co., Ltd. | 197,477 | 1,732,211 |
| Asahi Glass Co., Ltd. | 200,246 | 1,191,380 |
| Chiyoda Corp. | 17,872 | 129,042 |
| COMSYS Holdings Corp. | 49,955 | 622,454 |
| Daikin Industries Ltd. | 89,549 | 5,348,481 |
| DMG Mori Co., Ltd. | 26,678 | 383,709 |
| Ebara Corp. | 43,180 | 172,456 |
| FANUC Corp. | 51,360 | 8,355,509 |
| Fuji Electric Co., Ltd. | 163,799 | 651,492 |
| Hino Motors Ltd. | 141,600 | 1,561,064 |
| Hoshizaki Electric Co., Ltd. | 6,024 | 386,240 |
| IHI Corp. | 388,244 | 1,204,602 |
| ITOCHU Corp. | 462,456 | 5,554,357 |
| JGC Corp. | 67,082 | 981,445 |
| JTEKT Corp. | 69,994 | 987,084 |
| Kajima Corp. | 243,832 | 1,372,228 |
| Kawasaki Heavy Industries Ltd. | 423,394 | 1,603,646 |
| Keihan Electric Railway Co., Ltd. | 112,074 | 723,207 |
| Komatsu Ltd. | 283,700 | 4,716,043 |
| Kubota Corp. | 351,427 | 5,505,501 |
| Kurita Water Industries Ltd. | 34,295 | 714,851 |
| LIXIL Group Corp. | 81,342 | 1,679,397 |
| Makita Corp. | 28,520 | 1,616,804 |
| Marubeni Corp. | 393,868 | 2,161,992 |
| Minebea Co., Ltd. | 103,638 | 1,242,613 |
| MISUMI Group, Inc. | 56,315 | 653,837 |
| Mitsubishi Corp. | 424,800 | 7,904,642 |
| Mitsubishi Electric Corp. | 568,282 | 5,678,834 |
| Mitsubishi Heavy Industries Ltd. | 852,888 | 4,077,760 |
| Mitsui & Co., Ltd. | 542,398 | 7,065,027 |
| Mitsui Engineering & Shipbuilding Co., Ltd. | 315,132 | 491,480 |
| Nabtesco Corp. | 28,514 | 569,645 |
| NGK Insulators Ltd. | 54,428 | 1,227,476 |
| Nidec Corp. | 63,099 | 4,949,615 |
| NSK Ltd. | 98,014 | 1,208,342 |
| NTN Corp. | 78,330 | 408,504 |
| Obayashi Corp. | 127,540 | 1,105,062 |
| Seibu Holdings, Inc. | 38,991 | 856,492 |
| Shimizu Corp. | 191,810 | 1,878,768 |
| SMC Corp. | 20,192 | 4,909,496 |
| Sojitz Corp. | 708,000 | 1,501,473 |
| Sumitomo Corp. | 406,661 | 4,320,469 |
8 See financial notes
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Sumitomo Heavy Industries Ltd. | 86,180 | 375,484 |
| Taisei Corp. | 203,058 | 1,377,346 |
| The Japan Steel Works Ltd. | 98,014 | 325,945 |
| THK Co., Ltd. | 71,600 | 1,246,065 |
| Toshiba Corp. | 1,355,571 | 4,295,410 |
| TOTO Ltd. | 93,796 | 1,383,894 |
| Toyota Tsusho Corp. | 76,239 | 1,757,740 |
| 110,166,614 | ||
| Commercial & Professional Services 0.3% | ||
| Dai Nippon Printing Co., Ltd. | 179,156 | 1,845,742 |
| Recruit Holdings Co., Ltd. | 109,111 | 3,358,370 |
| Secom Co., Ltd. | 58,518 | 3,748,610 |
| Sohgo Security Services Co., Ltd. | 19,339 | 845,787 |
| Toppan Printing Co., Ltd. | 174,938 | 1,453,666 |
| 11,252,175 | ||
| Consumer Durables & Apparel 0.9% | ||
| Asics Corp. | 51,466 | 1,507,648 |
| Bandai Namco Holdings, Inc. | 67,182 | 1,556,687 |
| Casio Computer Co., Ltd. | 65,676 | 1,264,907 |
| Haseko Corp. | 144,006 | 1,695,726 |
| Iida Group Holdings Co., Ltd. | 37,617 | 666,760 |
| Nikon Corp. | 141,600 | 1,816,958 |
| Panasonic Corp. | 607,674 | 6,706,803 |
| Rinnai Corp. | 15,670 | 1,175,395 |
| Sega Sammy Holdings, Inc. | 52,722 | 556,434 |
| Sekisui Chemical Co., Ltd. | 113,480 | 1,253,866 |
| Sekisui House Ltd. | 167,108 | 2,499,346 |
| Sharp Corp. *(a) | 398,086 | 581,435 |
| Shimano, Inc. | 20,434 | 2,753,536 |
| Sony Corp. * | 348,850 | 9,102,312 |
| Sumitomo Forestry Co., Ltd. | 87,583 | 982,901 |
| Wacoal Holdings Corp. | 29,120 | 374,618 |
| Yamaha Corp. | 38,932 | 892,463 |
| 35,387,795 | ||
| Consumer Services 0.1% | ||
| Benesse Holdings, Inc. | 37,156 | 987,270 |
| Oriental Land Co., Ltd. | 74,312 | 4,102,996 |
| Resorttrust, Inc. | 30,526 | 813,624 |
| 5,903,890 | ||
| Diversified Financials 0.6% | ||
| AEON Financial Service Co., Ltd. | 19,339 | 439,809 |
| Aiful Corp. * | 95,502 | 369,604 |
| Credit Saison Co., Ltd. | 65,976 | 1,322,950 |
| Daiwa Securities Group, Inc. | 462,356 | 3,213,238 |
| Jafco Co., Ltd. | 4,718 | 206,341 |
| Japan Exchange Group, Inc. | 69,894 | 2,180,132 |
| Mitsubishi UFJ Lease & Finance Co., Ltd. | 283,200 | 1,369,437 |
| Nomura Holdings, Inc. | 991,200 | 6,266,108 |
| Okasan Securities Group, Inc. | 41,774 | 258,535 |
| ORIX Corp. | 350,582 | 4,727,078 |
| SBI Holdings, Inc. | 107,772 | 1,312,633 |
| Tokai Tokyo Financial Holdings, Inc. | 27,114 | 181,230 |
| Zenkoku Hosho Co., Ltd. | 30,546 | 1,102,766 |
| 22,949,861 | ||
| Energy 0.2% | ||
| Cosmo Oil Co., Ltd. * | 174,938 | 272,833 |
| Idemitsu Kosan Co., Ltd. | 34,720 | 595,356 |
| Inpex Corp. | 283,200 | 2,855,720 |
| Security | Number of Shares | Value ($) |
| Japan Petroleum Exploration Co., Ltd. | 9,336 | 275,030 |
| JX Holdings, Inc. | 849,600 | 3,287,349 |
| Showa Shell Sekiyu K.K. | 141,600 | 1,211,694 |
| 8,497,982 | ||
| Food & Staples Retailing 0.5% | ||
| Aeon Co., Ltd. | 266,864 | 4,010,062 |
| FamilyMart Co., Ltd. | 20,684 | 959,228 |
| Lawson, Inc. | 14,660 | 1,047,618 |
| Seven & i Holdings Co., Ltd. | 232,484 | 10,148,454 |
| Sugi Holdings Co., Ltd. | 13,354 | 645,744 |
| Sundrug Co., Ltd. | 12,048 | 678,032 |
| Tsuruha Holdings, Inc. | 12,048 | 980,264 |
| 18,469,402 | ||
| Food, Beverage & Tobacco 1.0% | ||
| Ajinomoto Co., Inc. | 148,224 | 3,267,570 |
| Asahi Group Holdings Ltd. | 141,600 | 4,676,767 |
| Calbee, Inc. | 20,000 | 766,596 |
| Japan Tobacco, Inc. | 308,102 | 11,007,366 |
| Kewpie Corp. | 73,712 | 1,627,704 |
| Kikkoman Corp. | 64,270 | 2,071,002 |
| Kirin Holdings Co., Ltd. | 301,215 | 4,429,303 |
| MEIJI Holdings Co., Ltd. | 17,972 | 2,928,968 |
| NH Foods Ltd. | 48,804 | 1,127,625 |
| Nisshin Seifun Group, Inc. | 111,268 | 1,522,320 |
| Nissin Foods Holdings Co., Ltd. | 23,496 | 1,116,780 |
| Sapporo Holdings Ltd. | 72,706 | 283,780 |
| Suntory Beverage & Food Ltd. | 36,924 | 1,563,066 |
| Toyo Suisan Kaisha Ltd. | 30,726 | 1,153,635 |
| Yakult Honsha Co., Ltd. | 31,952 | 1,787,635 |
| Yamazaki Baking Co., Ltd. | 27,714 | 467,674 |
| 39,797,791 | ||
| Health Care Equipment & Services 0.4% | ||
| Alfresa Holdings Corp. | 87,166 | 1,592,487 |
| Hoya Corp. | 123,622 | 4,845,011 |
| M3, Inc. | 26,914 | 624,518 |
| Miraca Holdings, Inc. | 10,042 | 431,727 |
| Nipro Corp. | 58,846 | 673,511 |
| Olympus Corp. | 74,509 | 2,723,727 |
| Suzuken Co., Ltd. | 25,508 | 877,735 |
| Sysmex Corp. | 33,126 | 2,011,861 |
| Terumo Corp. | 132,569 | 3,626,408 |
| 17,406,985 | ||
| Household & Personal Products 0.3% | ||
| Kao Corp. | 157,966 | 7,237,094 |
| Kobayashi Pharmaceutical Co., Ltd. | 5,018 | 390,475 |
| Lion Corp. | 67,082 | 587,871 |
| Pigeon Corp. | 25,331 | 672,024 |
| Shiseido Co., Ltd. | 141,600 | 2,973,150 |
| Unicharm Corp. | 86,438 | 1,748,232 |
| 13,608,846 | ||
| Insurance 0.7% | ||
| MS&AD Insurance Group Holdings, Inc. | 141,600 | 4,470,533 |
| Sompo Japan Nipponkoa Holdings, Inc. | 135,485 | 4,497,720 |
| Sony Financial Holdings, Inc. | 43,480 | 815,889 |
| T&D Holdings, Inc. | 251,641 | 3,394,044 |
See financial notes 9
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| The Dai-ichi Life Insurance Co., Ltd. | 364,835 | 6,659,364 |
| Tokio Marine Holdings, Inc. | 195,073 | 7,848,958 |
| 27,686,508 | ||
| Materials 1.4% | ||
| Air Water, Inc. | 68,488 | 1,095,831 |
| Asahi Kasei Corp. | 385,432 | 3,080,021 |
| Daicel Corp. | 96,608 | 1,277,105 |
| Denki Kagaku Kogyo K.K. | 53,022 | 226,203 |
| DIC Corp. | 250,220 | 604,980 |
| Dowa Holdings Co., Ltd. | 22,090 | 192,673 |
| Hitachi Chemical Co., Ltd. | 30,526 | 470,038 |
| Hitachi Metals Ltd. | 69,894 | 887,048 |
| JFE Holdings, Inc. | 145,918 | 2,266,705 |
| JSR Corp. | 110,101 | 1,733,488 |
| Kaneka Corp. | 43,180 | 350,257 |
| Kansai Paint Co., Ltd. | 61,458 | 960,527 |
| Kobe Steel Ltd. | 1,416,000 | 1,904,592 |
| Kuraray Co., Ltd. | 141,600 | 1,676,742 |
| Maruichi Steel Tube Ltd. | 6,224 | 158,701 |
| Mitsubishi Chemical Holdings Corp. | 567,833 | 3,236,393 |
| Mitsubishi Gas Chemical Co., Inc. | 92,937 | 454,006 |
| Mitsubishi Materials Corp. | 635,792 | 2,046,119 |
| Mitsui Chemicals, Inc. | 127,540 | 432,553 |
| Mitsui Mining & Smelting Co., Ltd. | 93,796 | 192,724 |
| Nippon Kayaku Co., Ltd. | 45,605 | 467,772 |
| Nippon Paint Holdings Co., Ltd. | 67,082 | 1,381,662 |
| Nippon Paper Industries Co., Ltd. | 16,566 | 271,623 |
| Nippon Shokubai Co., Ltd. | 47,011 | 726,200 |
| Nippon Steel & Sumitomo Metal Corp. | 2,425,072 | 4,996,827 |
| Nissan Chemical Industries Ltd. | 40,327 | 929,765 |
| Nisshin Steel Co., Ltd. | 21,990 | 207,225 |
| Nitto Denko Corp. | 44,686 | 3,013,360 |
| Oji Holdings Corp. | 169,314 | 785,200 |
| Shin-Etsu Chemical Co., Ltd. | 132,369 | 7,288,842 |
| Sumitomo Chemical Co., Ltd. | 378,433 | 1,886,154 |
| Sumitomo Metal Mining Co., Ltd. | 146,818 | 1,866,952 |
| Sumitomo Osaka Cement Co., Ltd. | 69,894 | 271,651 |
| Taiheiyo Cement Corp. | 271,952 | 922,328 |
| Taiyo Nippon Sanso Corp. | 24,902 | 305,354 |
| Teijin Ltd. | 327,340 | 1,042,647 |
| Toray Industries, Inc. | 431,358 | 3,815,784 |
| Tosoh Corp. | 176,520 | 834,641 |
| Toyo Seikan Group Holdings Ltd. | 27,757 | 456,032 |
| Toyobo Co., Ltd. | 152,442 | 218,879 |
| Ube Industries Ltd. | 170,720 | 295,839 |
| Zeon Corp. | 38,962 | 324,080 |
| 55,555,523 | ||
| Media 0.1% | ||
| Dentsu, Inc. | 68,088 | 3,494,718 |
| Hakuhodo DY Holdings, Inc. | 124,072 | 1,242,921 |
| Shochiku Co., Ltd. | 38,962 | 311,220 |
| Toho Co., Ltd. | 30,326 | 684,672 |
| 5,733,531 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 1.3% | ||
| Astellas Pharma, Inc. | 687,205 | 10,207,278 |
| Chugai Pharmaceutical Co., Ltd. | 62,964 | 2,356,247 |
| Daiichi Sankyo Co., Ltd. | 173,532 | 3,347,205 |
| Eisai Co., Ltd. | 73,800 | 5,038,752 |
| Hisamitsu Pharmaceutical Co., Inc. | 14,460 | 501,748 |
| Kaken Pharmaceutical Co., Ltd. | 13,654 | 645,603 |
| Security | Number of Shares | Value ($) |
| Kyowa Hakko Kirin Co., Ltd. | 47,194 | 794,063 |
| Mitsubishi Tanabe Pharma Corp. | 127,670 | 2,288,231 |
| Nippon Shinyaku Co., Ltd. | 16,466 | 566,598 |
| Ono Pharmaceutical Co., Ltd. | 26,458 | 3,379,707 |
| Otsuka Holdings Co., Ltd. | 106,250 | 3,625,836 |
| Rohto Pharmaceutical Co., Ltd. | 27,714 | 479,566 |
| Santen Pharmaceutical Co., Ltd. | 118,232 | 1,848,823 |
| Sawai Pharmaceutical Co., Ltd. | 5,018 | 317,184 |
| Shionogi & Co., Ltd. | 82,948 | 3,258,097 |
| Sumitomo Dainippon Pharma Co., Ltd. | 50,510 | 540,174 |
| Taisho Pharmaceutical Holdings Co., Ltd. | 9,180 | 595,410 |
| Takeda Pharmaceutical Co., Ltd. | 210,288 | 10,345,646 |
| Tsumura & Co. | 40,026 | 891,448 |
| 51,027,616 | ||
| Real Estate 0.8% | ||
| Aeon Mall Co., Ltd. | 37,442 | 631,835 |
| Daikyo, Inc. | 180,322 | 282,718 |
| Daito Trust Construction Co., Ltd. | 20,675 | 2,263,954 |
| Daiwa House Industry Co., Ltd. | 229,226 | 5,638,674 |
| Hulic Co., Ltd. | 63,770 | 587,262 |
| Mitsubishi Estate Co., Ltd. | 356,840 | 7,682,432 |
| Mitsui Fudosan Co., Ltd. | 299,666 | 8,308,601 |
| Nomura Real Estate Holdings, Inc. | 30,481 | 572,973 |
| NTT Urban Development Corp. | 78,530 | 734,204 |
| Sumitomo Real Estate Sales Co., Ltd. | 14,760 | 389,142 |
| Sumitomo Realty & Development Co., Ltd. | 114,706 | 3,881,745 |
| Tokyo Tatemono Co., Ltd. | 46,877 | 589,516 |
| Tokyu Fudosan Holdings Corp. | 141,600 | 974,497 |
| 32,537,553 | ||
| Retailing 0.6% | ||
| Aoyama Trading Co., Ltd. | 26,408 | 987,154 |
| Don Quijote Holdings Co., Ltd. | 30,385 | 1,180,949 |
| Fast Retailing Co., Ltd. | 14,614 | 5,940,989 |
| Isetan Mitsukoshi Holdings Ltd. | 146,836 | 2,353,060 |
| J Front Retailing Co., Ltd. | 51,616 | 838,651 |
| Marui Group Co., Ltd. | 141,600 | 1,715,301 |
| Nitori Holdings Co., Ltd. | 17,872 | 1,423,153 |
| Rakuten, Inc. | 283,200 | 4,052,224 |
| Ryohin Keikaku Co., Ltd. | 7,611 | 1,693,218 |
| Sanrio Co., Ltd. | 27,114 | 896,081 |
| Shimamura Co., Ltd. | 8,584 | 794,047 |
| Start Today Co., Ltd. | 7,330 | 223,798 |
| Takashimaya Co., Ltd. | 90,984 | 788,325 |
| USS Co., Ltd. | 121,838 | 2,165,607 |
| Yamada Denki Co., Ltd. | 258,692 | 996,899 |
| 26,049,456 | ||
| Semiconductors & Semiconductor Equipment 0.1% | ||
| Advantest Corp. | 101,226 | 814,419 |
| Disco Corp. | 6,024 | 455,336 |
| Rohm Co., Ltd. | 18,778 | 1,021,141 |
| Sumco Corp. | 45,147 | 416,134 |
| Tokyo Electron Ltd. | 48,404 | 2,547,516 |
| 5,254,546 | ||
| Software & Services 0.5% | ||
| Dena Co., Ltd. | 26,914 | 492,152 |
| Fujitsu Ltd. | 497,506 | 2,471,827 |
10 See financial notes
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Gree, Inc. | 72,606 | 342,704 |
| Kakaku.com, Inc. | 24,802 | 394,589 |
| Konami Corp. | 34,244 | 752,783 |
| Nexon Co., Ltd. | 34,644 | 483,132 |
| Nintendo Co., Ltd. | 28,920 | 5,968,471 |
| Nomura Research Institute Ltd. | 33,038 | 1,342,676 |
| NTT Data Corp. | 37,156 | 1,790,577 |
| Obic Co., Ltd. | 27,114 | 1,210,437 |
| Otsuka Corp. | 20,184 | 1,065,954 |
| Square Enix Holdings Co., Ltd. | 29,826 | 778,968 |
| Trend Micro, Inc. | 23,496 | 836,615 |
| Yahoo Japan Corp. | 424,800 | 1,721,144 |
| 19,652,029 | ||
| Technology Hardware & Equipment 1.5% | ||
| Alps Electric Co., Ltd. | 47,698 | 1,497,635 |
| Anritsu Corp. | 77,324 | 516,195 |
| Azbil Corp. | 10,042 | 255,639 |
| Brother Industries Ltd. | 88,772 | 1,213,807 |
| Canon, Inc. | 308,808 | 9,446,311 |
| Citizen Holdings Co., Ltd. | 108,044 | 816,671 |
| FUJIFILM Holdings Corp. | 141,600 | 5,829,454 |
| Hamamatsu Photonics K.K. | 60,452 | 1,499,016 |
| Hirose Electric Co., Ltd. | 5,992 | 685,309 |
| Hitachi Ltd. | 1,416,000 | 7,966,570 |
| Ibiden Co., Ltd. | 35,963 | 508,945 |
| Japan Aviation Electronics Industry Ltd. | 23,496 | 430,426 |
| Japan Display, Inc. * | 152,142 | 479,583 |
| Keyence Corp. | 11,748 | 5,466,598 |
| Konica Minolta, Inc. | 98,014 | 1,077,317 |
| Kyocera Corp. | 83,742 | 4,115,061 |
| Murata Manufacturing Co., Ltd. | 56,169 | 8,134,389 |
| NEC Corp. | 620,636 | 1,961,493 |
| Omron Corp. | 45,692 | 1,719,318 |
| Ricoh Co., Ltd. | 177,750 | 1,738,851 |
| Seiko Epson Corp. | 73,006 | 1,184,988 |
| Shimadzu Corp. | 40,368 | 594,602 |
| Taiyo Yuden Co., Ltd. | 24,602 | 300,864 |
| TDK Corp. | 28,920 | 1,801,758 |
| Topcon Corp. | 19,454 | 309,505 |
| Yaskawa Electric Corp. | 61,458 | 704,927 |
| Yokogawa Electric Corp. | 142,600 | 1,677,993 |
| 61,933,225 | ||
| Telecommunication Services 1.1% | ||
| KDDI Corp. | 503,630 | 12,542,438 |
| Nippon Telegraph & Telephone Corp. | 187,720 | 7,171,265 |
| NTT DOCOMO, Inc. | 382,024 | 8,002,376 |
| SoftBank Group Corp. | 254,882 | 14,855,234 |
| 42,571,313 | ||
| Transportation 1.2% | ||
| ANA Holdings, Inc. | 350,494 | 1,029,342 |
| Central Japan Railway Co. | 53,198 | 8,729,152 |
| East Japan Railway Co. | 108,056 | 9,991,067 |
| Hankyu Hanshin Holdings, Inc. | 306,696 | 1,842,428 |
| Japan Airlines Co., Ltd. | 52,722 | 1,877,257 |
| Japan Airport Terminal Co., Ltd. | 10,721 | 480,381 |
| Kawasaki Kisen Kaisha Ltd. | 188,998 | 421,087 |
| Keikyu Corp. | 140,194 | 1,127,938 |
| Keio Corp. | 203,058 | 1,524,799 |
| Keisei Electric Railway Co., Ltd. | 141,238 | 1,508,124 |
| Security | Number of Shares | Value ($) |
| Kintetsu Group Holdings Co., Ltd. | 465,168 | 1,662,068 |
| Mitsui OSK Lines Ltd. | 437,048 | 1,233,407 |
| Nagoya Railroad Co., Ltd. | 218,509 | 870,899 |
| Nippon Express Co., Ltd. | 242,681 | 1,177,509 |
| Nippon Yusen K.K. | 448,296 | 1,180,067 |
| Odakyu Electric Railway Co., Ltd. | 174,430 | 1,594,821 |
| Tobu Railway Co., Ltd. | 320,756 | 1,431,935 |
| Tokyu Corp. | 269,140 | 1,912,197 |
| West Japan Railway Co. | 66,076 | 4,464,499 |
| Yamato Holdings Co., Ltd. | 141,600 | 2,765,164 |
| 46,824,141 | ||
| Utilities 0.6% | ||
| Chubu Electric Power Co., Inc. | 268,667 | 4,164,632 |
| Electric Power Development Co., Ltd. | 41,484 | 1,300,814 |
| Hokkaido Electric Power Co., Inc. * | 44,286 | 486,768 |
| Hokuriku Electric Power Co. | 98,407 | 1,422,693 |
| Kyushu Electric Power Co., Inc. * | 141,600 | 1,689,595 |
| Osaka Gas Co., Ltd. | 458,503 | 1,863,750 |
| The Chugoku Electric Power Co., Inc. | 142,200 | 2,081,634 |
| The Kansai Electric Power Co., Inc. * | 283,200 | 3,536,933 |
| Toho Gas Co., Ltd. | 188,998 | 1,140,055 |
| Tohoku Electric Power Co., Inc. | 141,600 | 1,945,488 |
| Tokyo Electric Power Co., Inc. * | 424,800 | 2,909,469 |
| Tokyo Gas Co., Ltd. | 595,264 | 3,258,148 |
| 25,799,979 | ||
| 887,055,458 | ||
| Netherlands 2.5% | ||
| Banks 0.4% | ||
| ING Groep N.V. CVA | 1,029,432 | 15,739,210 |
| Capital Goods 0.2% | ||
| Boskalis Westminster | 11,328 | 589,337 |
| Koninklijke Philips N.V. | 285,279 | 7,326,493 |
| 7,915,830 | ||
| Commercial & Professional Services 0.1% | ||
| Randstad Holding N.V. | 41,064 | 2,592,787 |
| Energy 0.0% | ||
| Koninklijke Vopak N.V. | 30,055 | 1,236,606 |
| Food & Staples Retailing 0.1% | ||
| Koninklijke Ahold N.V. | 219,540 | 4,333,193 |
| Food, Beverage & Tobacco 0.2% | ||
| Heineken Holding N.V. | 31,152 | 2,171,141 |
| Heineken N.V. | 62,631 | 4,947,550 |
| 7,118,691 | ||
| Household & Personal Products 0.4% | ||
| Unilever N.V. CVA | 440,461 | 17,636,523 |
| Insurance 0.1% | ||
| Aegon N.V. | 570,648 | 3,507,808 |
| NN Group N.V. | 25,994 | 792,963 |
| 4,300,771 | ||
| Materials 0.2% | ||
| Akzo Nobel N.V. | 65,136 | 4,403,907 |
| ArcelorMittal | 280,368 | 2,179,903 |
See financial notes 11
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Koninklijke DSM N.V. | 52,392 | 2,753,862 |
| OCI N.V. * | 18,408 | 542,055 |
| 9,879,727 | ||
| Media 0.3% | ||
| Altice N.V., A Shares * | 70,748 | 2,015,519 |
| Altice N.V., B Shares * | 23,582 | 739,333 |
| RELX N.V. | 302,648 | 4,657,772 |
| Wolters Kluwer N.V. | 84,960 | 2,689,333 |
| 10,101,957 | ||
| Real Estate 0.2% | ||
| Unibail-Rodamco SE | 27,556 | 7,140,188 |
| Semiconductors & Semiconductor Equipment 0.2% | ||
| ASML Holding N.V. | 92,951 | 8,507,100 |
| Software & Services 0.0% | ||
| Gemalto N.V. | 21,240 | 1,527,922 |
| Telecommunication Services 0.1% | ||
| Koninklijke KPN N.V. | 854,191 | 3,323,123 |
| Transportation 0.0% | ||
| TNT Express N.V. | 127,440 | 1,076,114 |
| 102,429,742 | ||
| New Zealand 0.2% | ||
| Consumer Services 0.0% | ||
| SKYCITY Entertainment Group Ltd. | 263,376 | 647,118 |
| Health Care Equipment & Services 0.0% | ||
| Fisher & Paykel Healthcare Corp., Ltd. | 97,004 | 445,351 |
| Ryman Healthcare Ltd. | 107,212 | 519,374 |
| 964,725 | ||
| Materials 0.0% | ||
| Fletcher Building Ltd. | 186,255 | 849,211 |
| Real Estate 0.0% | ||
| Kiwi Property Group Ltd. | 713,127 | 591,580 |
| Telecommunication Services 0.1% | ||
| Spark New Zealand Ltd. | 563,568 | 1,206,253 |
| Transportation 0.1% | ||
| Auckland International Airport Ltd. | 496,334 | 1,555,802 |
| Utilities 0.0% | ||
| Contact Energy Ltd. | 191,847 | 630,518 |
| 6,445,207 | ||
| Norway 0.5% | ||
| Banks 0.1% | ||
| DNB A.S.A. | 328,512 | 4,638,489 |
| Energy 0.1% | ||
| Seadrill Ltd. | 68,344 | 505,319 |
| Statoil A.S.A. | 297,155 | 4,390,642 |
| Subsea 7 S.A. * | 97,704 | 820,273 |
| 5,716,234 | ||
| Food, Beverage & Tobacco 0.1% | ||
| Marine Harvest A.S.A. | 32,266 | 384,016 |
| Orkla A.S.A. | 283,200 | 2,060,140 |
| 2,444,156 | ||
| Insurance 0.0% | ||
| Gjensidige Forsikring A.S.A. | 62,304 | 913,149 |
| Security | Number of Shares | Value ($) |
| Materials 0.1% | ||
| Norsk Hydro A.S.A. | 237,888 | 813,059 |
| Yara International A.S.A. | 49,987 | 2,201,456 |
| 3,014,515 | ||
| Media 0.0% | ||
| Schibsted A.S.A., B Shares * | 25,488 | 784,204 |
| Schibsted A.S.A., Class A | 25,488 | 820,983 |
| 1,605,187 | ||
| Telecommunication Services 0.1% | ||
| Telenor A.S.A. | 182,664 | 3,596,447 |
| 21,928,177 | ||
| Portugal 0.1% | ||
| Banks 0.0% | ||
| Banco Comercial Portugues S.A. - Reg'd * | 11,874,576 | 838,244 |
| Banco Espirito Santo S.A. - Reg'd *(b)(c) | 505,213 | — |
| 838,244 | ||
| Energy 0.0% | ||
| Galp Energia, SGPS, S.A. | 140,184 | 1,476,044 |
| Food & Staples Retailing 0.0% | ||
| Jeronimo Martins, SGPS, S.A. | 21,545 | 298,144 |
| Utilities 0.1% | ||
| EDP - Energias de Portugal S.A. | 717,912 | 2,514,617 |
| 5,127,049 | ||
| Republic of Korea 3.4% | ||
| Automobiles & Components 0.3% | ||
| Hankook Tire Co., Ltd. | 22,037 | 688,452 |
| Hanon Systems | 3,558 | 109,350 |
| Hyundai Mobis Co., Ltd. | 18,134 | 3,166,071 |
| Hyundai Motor Co. | 43,845 | 5,523,488 |
| Hyundai Wia Corp. | 5,062 | 447,245 |
| Kia Motors Corp. | 71,324 | 2,936,782 |
| 12,871,388 | ||
| Banks 0.3% | ||
| BNK Financial Group, Inc. | 77,689 | 913,022 |
| Hana Financial Group, Inc. | 81,059 | 1,864,134 |
| Industrial Bank of Korea | 70,000 | 781,230 |
| KB Financial Group, Inc. ADR | 141,600 | 4,235,256 |
| Shinhan Financial Group Co., Ltd. ADR | 134,304 | 4,508,586 |
| 12,302,228 | ||
| Capital Goods 0.4% | ||
| Cheil Industries, Inc. * | 6,000 | 902,980 |
| CJ Corp. | 4,000 | 972,310 |
| Daelim Industrial Co., Ltd. | 14,143 | 804,755 |
| Daewoo International Corp. | 15,027 | 276,972 |
| Daewoo Shipbuilding & Marine Engineering Co., Ltd. | 29,644 | 168,678 |
| Doosan Corp. | 1,746 | 152,051 |
| Doosan Heavy Industries & Construction Co., Ltd. | 14,480 | 225,265 |
| GS Engineering & Construction Corp. * | 14,464 | 297,779 |
| Hanwha Techwin Co., Ltd. * | 14,690 | 388,752 |
12 See financial notes
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Hyundai Development Co-Engineering & Construction | 17,197 | 870,937 |
| Hyundai Engineering & Construction Co., Ltd. | 20,409 | 572,884 |
| Hyundai Heavy Industries Co., Ltd. * | 11,564 | 894,615 |
| KCC Corp. | 1,332 | 442,029 |
| KEPCO Engineering & Construction Co., Inc. | 2,732 | 58,209 |
| Korea Aerospace Industries Ltd. | 14,000 | 1,092,539 |
| LG Corp. | 25,925 | 1,275,701 |
| LG Hausys Ltd. | 1,709 | 226,855 |
| Neo Holdings Co., Ltd. *(b)(c) | 1,746 | — |
| Samsung C&T Corp. (b) | 47,482 | 2,501,775 |
| Samsung Heavy Industries Co., Ltd. | 48,686 | 463,088 |
| SK Holdings Co., Ltd. | 10,862 | 2,479,594 |
| 15,067,768 | ||
| Commercial & Professional Services 0.0% | ||
| S-1 Corp. | 6,932 | 550,340 |
| Consumer Durables & Apparel 0.1% | ||
| Coway Co., Ltd. | 14,000 | 999,028 |
| LG Electronics, Inc. | 30,304 | 1,140,163 |
| 2,139,191 | ||
| Consumer Services 0.0% | ||
| Kangwon Land, Inc. | 34,840 | 1,253,386 |
| Diversified Financials 0.1% | ||
| Daewoo Securities Co., Ltd. | 73,600 | 771,626 |
| Korea Investment Holdings Co., Ltd. | 18,000 | 1,062,270 |
| Samsung Card Co., Ltd. | 6,960 | 213,316 |
| Samsung Securities Co., Ltd. | 14,820 | 566,361 |
| 2,613,573 | ||
| Energy 0.1% | ||
| GS Holdings Corp. | 14,877 | 584,263 |
| S-Oil Corp. | 18,785 | 952,949 |
| SK Innovation Co., Ltd. * | 17,871 | 1,509,459 |
| 3,046,671 | ||
| Food & Staples Retailing 0.0% | ||
| E-Mart Co., Ltd. | 6,079 | 1,174,425 |
| Food, Beverage & Tobacco 0.2% | ||
| CJ CheilJedang Corp. | 2,200 | 731,008 |
| KT&G Corp. | 37,444 | 3,498,256 |
| Lotte Chilsung Beverage Co., Ltd. | 207 | 399,911 |
| Lotte Confectionery Co., Ltd. | 300 | 494,103 |
| Orion Corp. | 1,677 | 1,322,884 |
| 6,446,162 | ||
| Household & Personal Products 0.1% | ||
| Amorepacific Corp. | 8,240 | 2,636,939 |
| AMOREPACIFIC Group | 8,200 | 1,192,475 |
| LG Household & Health Care Ltd. | 2,720 | 1,844,380 |
| 5,673,794 | ||
| Insurance 0.1% | ||
| Dongbu Insurance Co., Ltd. | 12,977 | 583,705 |
| Hanwha Life Insurance Co., Ltd. | 45,793 | 307,803 |
| Hyundai Marine & Fire Insurance Co., Ltd. | 51,234 | 1,212,895 |
| Security | Number of Shares | Value ($) |
| Samsung Fire & Marine Insurance Co., Ltd. | 10,193 | 2,322,565 |
| Samsung Life Insurance Co., Ltd. | 23,416 | 1,946,136 |
| 6,373,104 | ||
| Materials 0.3% | ||
| Hanwha Chemical Corp. | 21,562 | 330,882 |
| Hyosung Corp. | 7,728 | 836,342 |
| Hyundai Steel Co. | 20,000 | 894,525 |
| Korea Zinc Co., Ltd. | 3,129 | 1,357,157 |
| Kumho Petrochemical Co., Ltd. | 4,781 | 221,517 |
| LG Chem Ltd. | 11,820 | 2,338,516 |
| Lotte Chemical Corp. | 3,908 | 816,128 |
| POSCO ADR | 98,180 | 3,966,472 |
| Samsung Fine Chemicals Co., Ltd. | 4,781 | 143,703 |
| 10,905,242 | ||
| Media 0.0% | ||
| Cheil Worldwide, Inc. * | 27,000 | 397,210 |
| Pharmaceuticals, Biotechnology & Life Sciences 0.0% | ||
| Celltrion, Inc. * | 18,215 | 1,093,439 |
| Yuhan Corp. | 2,866 | 602,157 |
| 1,695,596 | ||
| Retailing 0.1% | ||
| Hotel Shilla Co., Ltd. | 8,804 | 896,962 |
| Hyundai Department Store Co., Ltd. | 5,016 | 638,265 |
| Lotte Shopping Co., Ltd. | 3,588 | 811,490 |
| 2,346,717 | ||
| Semiconductors & Semiconductor Equipment 0.1% | ||
| SK Hynix, Inc. | 149,765 | 4,533,153 |
| Software & Services 0.2% | ||
| Daum Kakao Corp. | 7,509 | 856,448 |
| NAVER Corp. | 7,403 | 3,101,405 |
| NCSoft Corp. | 4,310 | 796,225 |
| NHN Entertainment Corp. * | 2,478 | 119,212 |
| Samsung SDS Co., Ltd. | 7,760 | 1,682,892 |
| 6,556,182 | ||
| Technology Hardware & Equipment 0.8% | ||
| LG Display Co., Ltd. ADR | 141,600 | 1,418,832 |
| Samsung Electro-Mechanics Co., Ltd. | 18,815 | 965,606 |
| Samsung Electronics Co., Ltd. GDR | 60,074 | 27,724,151 |
| Samsung SDI Co., Ltd. | 15,303 | 1,093,303 |
| 31,201,892 | ||
| Telecommunication Services 0.1% | ||
| KT Corp. ADR | 97,704 | 1,207,621 |
| LG Uplus Corp. | 87,570 | 814,433 |
| SK Telecom Co., Ltd. ADR | 112,220 | 2,551,883 |
| 4,573,937 | ||
| Transportation 0.0% | ||
| CJ Korea Express Co., Ltd. * | 3,145 | 473,312 |
| Hyundai Glovis Co., Ltd. | 6,249 | 908,753 |
| Hyundai Merchant Marine Co., Ltd. * | 13,216 | 94,979 |
| Korean Air Lines Co., Ltd. * | 4,781 | 134,608 |
| 1,611,652 | ||
See financial notes 13
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Utilities 0.1% | ||
| Korea Electric Power Corp. ADR | 141,600 | 2,891,472 |
| Korea Gas Corp. | 3,633 | 123,634 |
| 3,015,106 | ||
| 136,348,717 | ||
| Singapore 1.1% | ||
| Banks 0.4% | ||
| DBS Group Holdings Ltd. | 492,191 | 6,198,193 |
| Oversea-Chinese Banking Corp., Ltd. | 851,539 | 5,391,933 |
| United Overseas Bank Ltd. | 334,876 | 4,601,785 |
| 16,191,911 | ||
| Capital Goods 0.1% | ||
| Keppel Corp., Ltd. | 406,148 | 1,969,831 |
| Noble Group Ltd. (a) | 1,416,181 | 547,273 |
| Singapore Technologies Engineering Ltd. | 605,362 | 1,317,777 |
| Yangzijiang Shipbuilding Holdings Ltd. | 929,456 | 724,953 |
| 4,559,834 | ||
| Consumer Services 0.0% | ||
| Genting Singapore plc | 1,696,388 | 926,199 |
| Diversified Financials 0.0% | ||
| Singapore Exchange Ltd. | 191,522 | 985,925 |
| Food & Staples Retailing 0.0% | ||
| Olam International Ltd. | 242,931 | 356,568 |
| Food, Beverage & Tobacco 0.1% | ||
| Golden Agri-Resources Ltd. | 2,832,000 | 632,546 |
| Wilmar International Ltd. | 634,383 | 1,281,991 |
| 1,914,537 | ||
| Media 0.0% | ||
| Singapore Press Holdings Ltd. | 378,402 | 1,057,154 |
| Real Estate 0.2% | ||
| CapitaLand Commercial Trust Ltd. | 1,416,000 | 1,335,375 |
| CapitaLand Ltd. | 979,393 | 1,958,369 |
| CapitaLand Mall Trust | 1,416,000 | 1,927,760 |
| City Developments Ltd. | 170,019 | 1,059,680 |
| Global Logistic Properties Ltd. | 959,806 | 1,510,863 |
| Wing Tai Holdings Ltd. | 408,149 | 476,073 |
| 8,268,120 | ||
| Technology Hardware & Equipment 0.0% | ||
| Venture Corp., Ltd. | 102,232 | 580,641 |
| Telecommunication Services 0.2% | ||
| Singapore Telecommunications Ltd. | 2,087,444 | 5,535,730 |
| Transportation 0.1% | ||
| ComfortDelGro Corp., Ltd. | 919,494 | 1,832,077 |
| Hutchison Port Holdings Trust | 1,416,000 | 743,400 |
| SIA Engineering Co., Ltd. | 177,971 | 441,678 |
| Singapore Airlines Ltd. | 143,633 | 1,010,310 |
| Singapore Post Ltd. | 762,154 | 961,947 |
| 4,989,412 | ||
| 45,366,031 | ||
| Security | Number of Shares | Value ($) |
| Spain 2.9% | ||
| Banks 1.2% | ||
| Banco Bilbao Vizcaya Argentaria S.A. | 1,666,131 | 15,426,188 |
| Banco de Sabadell S.A. | 1,338,127 | 2,848,804 |
| Banco Popular Espanol S.A. | 451,178 | 1,931,687 |
| Banco Santander S.A. | 3,885,951 | 23,773,969 |
| Bankia S.A. | 1,273,287 | 1,536,575 |
| Bankinter S.A. | 164,256 | 1,236,808 |
| CaixaBank S.A. | 526,752 | 2,278,270 |
| 49,032,301 | ||
| Capital Goods 0.1% | ||
| ACS, Actividades de Construccion y Servicios S.A. | 56,640 | 1,836,363 |
| Ferrovial S.A. | 143,016 | 3,416,517 |
| Zardoya Otis S.A. | 42,546 | 454,321 |
| 5,707,201 | ||
| Diversified Financials 0.0% | ||
| Corporacion Financiera Alba S.A. | 11,328 | 532,980 |
| Energy 0.1% | ||
| Repsol S.A. | 305,856 | 4,371,286 |
| Food & Staples Retailing 0.0% | ||
| Distribuidora Internacional de Alimentacion S.A. * | 195,816 | 1,177,363 |
| Insurance 0.0% | ||
| Mapfre S.A. | 209,568 | 617,579 |
| Media 0.0% | ||
| Mediaset Espana Comunicacion S.A. | 38,232 | 456,021 |
| Pharmaceuticals, Biotechnology & Life Sciences 0.1% | ||
| Grifols S.A. | 47,384 | 1,940,842 |
| Retailing 0.3% | ||
| Industria de Diseno Textil S.A. | 332,860 | 11,092,113 |
| Software & Services 0.1% | ||
| Amadeus IT Holding S.A., A Shares | 110,448 | 4,617,372 |
| Telecommunication Services 0.4% | ||
| Telefonica S.A. | 1,206,737 | 17,023,548 |
| Transportation 0.1% | ||
| Abertis Infraestructuras S.A. | 125,629 | 2,077,724 |
| Aena S.A. *(e) | 16,133 | 1,852,895 |
| 3,930,619 | ||
| Utilities 0.5% | ||
| Acciona S.A. | 13,739 | 1,022,352 |
| Enagas S.A. | 63,720 | 1,743,545 |
| Endesa S.A. | 91,312 | 1,892,829 |
| Gas Natural SDG S.A. | 119,842 | 2,430,521 |
| Iberdrola S.A. | 1,374,393 | 9,324,741 |
| Red Electrica Corp. S.A. | 22,711 | 1,812,892 |
| 18,226,880 | ||
| 118,726,105 | ||
| Sweden 2.6% | ||
| Banks 0.7% | ||
| Nordea Bank AB | 889,248 | 10,500,887 |
| Skandinaviska Enskilda Banken AB, A Shares | 463,032 | 5,377,779 |
14 See financial notes
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Svenska Handelsbanken AB, A Shares | 430,227 | 6,413,920 |
| Swedbank AB, A Shares | 291,862 | 6,652,263 |
| 28,944,849 | ||
| Capital Goods 0.7% | ||
| Alfa Laval AB | 100,536 | 1,691,941 |
| Assa Abloy AB, B Shares | 247,374 | 4,725,768 |
| Atlas Copco AB, A Shares | 161,722 | 4,069,137 |
| Atlas Copco AB, B Shares | 123,192 | 2,804,949 |
| Sandvik AB | 263,376 | 2,539,013 |
| Skanska AB, B Shares | 123,192 | 2,410,050 |
| SKF AB, B Shares | 133,104 | 2,539,647 |
| Trelleborg AB, B Shares | 67,328 | 1,097,370 |
| Volvo AB, B Shares | 416,304 | 4,518,617 |
| 26,396,492 | ||
| Commercial & Professional Services 0.1% | ||
| Securitas AB, B Shares | 140,184 | 1,784,258 |
| Consumer Durables & Apparel 0.1% | ||
| Electrolux AB, Series B | 86,376 | 2,433,929 |
| Husqvarna AB, B Shares | 39,764 | 257,744 |
| 2,691,673 | ||
| Diversified Financials 0.2% | ||
| Industrivarden AB, A Shares | 82,128 | 1,548,626 |
| Investment AB Kinnevik, B Shares | 39,648 | 1,118,148 |
| Investor AB, B Shares | 126,156 | 4,533,157 |
| 7,199,931 | ||
| Energy 0.0% | ||
| Lundin Petroleum AB * | 56,665 | 738,593 |
| Food, Beverage & Tobacco 0.1% | ||
| Swedish Match AB | 93,568 | 2,760,092 |
| Health Care Equipment & Services 0.0% | ||
| Elekta AB, B Shares | 39,648 | 245,077 |
| Getinge AB, B Shares | 59,472 | 1,319,069 |
| 1,564,146 | ||
| Household & Personal Products 0.1% | ||
| Svenska Cellulosa AB SCA, B Shares | 162,840 | 4,632,695 |
| Materials 0.0% | ||
| Boliden AB | 53,808 | 887,156 |
| Holmen AB, B Shares | 15,576 | 437,620 |
| 1,324,776 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.0% | ||
| Meda AB, A Shares | 48,144 | 737,033 |
| Retailing 0.2% | ||
| Hennes & Mauritz AB, B Shares | 246,771 | 9,475,029 |
| Technology Hardware & Equipment 0.3% | ||
| Hexagon AB, B Shares | 69,384 | 2,230,689 |
| Telefonaktiebolaget LM Ericsson, B Shares | 798,624 | 7,769,531 |
| 10,000,220 | ||
| Telecommunication Services 0.1% | ||
| Tele2 AB, B Shares | 128,856 | 1,270,299 |
| TeliaSonera AB | 719,534 | 4,051,658 |
| 5,321,957 | ||
| 103,571,744 | ||
| Security | Number of Shares | Value ($) |
| Switzerland 8.2% | ||
| Banks 0.0% | ||
| Banque Cantonale Vaudoise - Reg'd | 1,416 | 841,942 |
| Capital Goods 0.6% | ||
| ABB Ltd. - Reg'd * | 677,814 | 13,085,970 |
| Geberit AG - Reg'd | 13,482 | 4,284,182 |
| Schindler Holding AG | 16,992 | 2,605,774 |
| Schindler Holding AG - Reg'd | 11,518 | 1,793,714 |
| Sulzer AG - Reg'd | 4,248 | 433,344 |
| 22,202,984 | ||
| Commercial & Professional Services 0.2% | ||
| Adecco S.A. - Reg'd * | 48,144 | 3,781,125 |
| DKSH Holding AG * | 11,328 | 690,539 |
| SGS S.A. - Reg'd | 1,416 | 2,498,005 |
| 6,969,669 | ||
| Consumer Durables & Apparel 0.4% | ||
| Cie Financiere Richemont S.A. - Reg'd | 143,016 | 10,699,765 |
| The Swatch Group AG | 9,912 | 3,795,474 |
| The Swatch Group AG - Reg'd | 17,474 | 1,293,768 |
| 15,789,007 | ||
| Diversified Financials 0.9% | ||
| Credit Suisse Group AG - Reg'd * | 404,064 | 10,842,729 |
| GAM Holding AG * | 53,808 | 993,199 |
| Julius Baer Group Ltd. * | 60,956 | 2,966,960 |
| Pargesa Holding S.A. | 7,080 | 434,149 |
| Partners Group Holding AG | 3,636 | 1,174,025 |
| UBS Group AG * | 1,008,761 | 20,893,938 |
| 37,305,000 | ||
| Energy 0.1% | ||
| Transocean Ltd. (a) | 141,466 | 1,933,903 |
| Food, Beverage & Tobacco 1.7% | ||
| Aryzta AG * | 26,904 | 1,379,350 |
| Chocoladefabriken Lindt & Sprungli AG | 200 | 1,129,207 |
| Chocoladefabriken Lindt & Sprungli AG - Reg'd | 22 | 1,480,658 |
| Nestle S.A. - Reg'd | 885,532 | 65,289,728 |
| 69,278,943 | ||
| Health Care Equipment & Services 0.1% | ||
| Sonova Holding AG - Reg'd | 15,576 | 2,027,836 |
| Insurance 0.6% | ||
| Baloise Holding AG - Reg'd | 12,744 | 1,560,302 |
| Swiss Life Holding AG - Reg'd * | 7,885 | 1,845,989 |
| Swiss Re AG | 107,616 | 9,242,034 |
| Zurich Insurance Group AG * | 42,480 | 11,671,512 |
| 24,319,837 | ||
| Materials 0.6% | ||
| Clariant AG - Reg'd * | 46,164 | 833,009 |
| Givaudan S.A. - Reg'd * | 2,880 | 4,958,585 |
| LafargeHolcim Ltd. - Reg'd *(f) | 61,078 | 3,884,284 |
| LafargeHolcim Ltd. - Reg’d *(f) | 48,648 | 3,087,450 |
| Sika AG | 367 | 1,214,795 |
| Syngenta AG - Reg'd | 27,746 | 9,611,613 |
| 23,589,736 | ||
See financial notes 15
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Pharmaceuticals, Biotechnology & Life Sciences 2.9% | ||
| Actelion Ltd. - Reg'd * | 32,568 | 4,445,454 |
| Galenica AG - Reg'd | 445 | 572,442 |
| Lonza Group AG - Reg'd * | 11,328 | 1,553,273 |
| Novartis AG - Reg'd | 601,132 | 58,866,863 |
| Roche Holding AG | 194,453 | 53,084,734 |
| 118,522,766 | ||
| Real Estate 0.0% | ||
| Swiss Prime Site AG - Reg'd * | 21,240 | 1,665,947 |
| Retailing 0.0% | ||
| Dufry AG - Reg'd * | 11,784 | 1,584,117 |
| Telecommunication Services 0.1% | ||
| Swisscom AG - Reg'd | 7,504 | 4,054,434 |
| Transportation 0.0% | ||
| Kuehne & Nagel International AG - Reg'd | 14,160 | 1,885,950 |
| 331,972,071 | ||
| United Kingdom 17.9% | ||
| Automobiles & Components 0.1% | ||
| GKN plc | 465,864 | 2,090,027 |
| Banks 2.3% | ||
| Barclays plc | 4,577,233 | 18,405,518 |
| HSBC Holdings plc | 5,407,501 | 43,138,916 |
| Lloyds Banking Group plc | 15,596,790 | 18,561,810 |
| Royal Bank of Scotland Group plc * | 848,374 | 4,394,564 |
| Standard Chartered plc | 589,376 | 6,934,422 |
| 91,435,230 | ||
| Capital Goods 0.9% | ||
| Ashtead Group plc | 145,848 | 2,120,891 |
| BAE Systems plc | 955,800 | 6,647,433 |
| Bunzl plc | 76,464 | 2,045,092 |
| Cobham plc | 276,120 | 1,195,878 |
| DCC plc | 23,201 | 1,733,844 |
| IMI plc | 92,491 | 1,476,567 |
| Meggitt plc | 181,248 | 1,330,798 |
| Melrose Industries plc | 388,870 | 1,596,879 |
| Rolls-Royce Holdings plc * | 564,984 | 6,460,610 |
| Smiths Group plc | 130,272 | 2,262,046 |
| The Weir Group plc | 50,976 | 1,100,751 |
| Travis Perkins plc | 69,384 | 2,185,474 |
| Wolseley plc | 85,019 | 5,501,041 |
| 35,657,304 | ||
| Commercial & Professional Services 0.4% | ||
| Aggreko plc | 72,507 | 1,189,873 |
| Babcock International Group plc | 97,865 | 1,458,504 |
| Capita plc | 177,000 | 3,364,714 |
| Experian plc | 278,952 | 4,757,923 |
| G4S plc | 402,144 | 1,586,446 |
| Intertek Group plc | 35,400 | 1,380,730 |
| Rentokil Initial plc | 631,536 | 1,440,442 |
| 15,178,632 | ||
| Consumer Durables & Apparel 0.3% | ||
| Barratt Developments plc | 186,150 | 1,830,880 |
| Berkeley Group Holdings plc | 51,470 | 2,669,304 |
| Burberry Group plc | 137,997 | 2,994,698 |
| Security | Number of Shares | Value ($) |
| Persimmon plc * | 64,054 | 2,071,772 |
| Taylor Wimpey plc | 991,200 | 3,068,750 |
| 12,635,404 | ||
| Consumer Services 0.5% | ||
| Carnival plc | 61,954 | 3,163,470 |
| Compass Group plc | 443,695 | 7,062,871 |
| InterContinental Hotels Group plc | 62,696 | 2,368,234 |
| Merlin Entertainments plc (e) | 176,625 | 1,055,357 |
| TUI AG | 108,464 | 1,928,412 |
| Whitbread plc | 58,056 | 4,283,248 |
| William Hill plc | 400,964 | 2,220,058 |
| 22,081,650 | ||
| Diversified Financials 0.3% | ||
| 3i Group plc | 304,440 | 2,302,749 |
| Aberdeen Asset Management plc | 391,130 | 1,918,369 |
| Ashmore Group plc | 97,704 | 394,756 |
| Hargreaves Lansdown plc | 65,136 | 1,127,016 |
| ICAP plc | 236,472 | 1,651,534 |
| Investec plc | 111,864 | 919,590 |
| London Stock Exchange Group plc | 66,252 | 2,567,769 |
| Provident Financial plc | 28,988 | 1,315,215 |
| Schroders plc | 43,896 | 1,915,992 |
| 14,112,990 | ||
| Energy 2.3% | ||
| Amec Foster Wheeler plc | 93,456 | 1,159,225 |
| BG Group plc | 948,805 | 14,513,822 |
| BP plc | 4,995,697 | 27,698,595 |
| John Wood Group plc | 143,016 | 1,404,436 |
| Petrofac Ltd. | 73,632 | 1,010,155 |
| Royal Dutch Shell plc, A Shares | 1,064,975 | 27,762,942 |
| Royal Dutch Shell plc, B Shares | 698,198 | 18,324,885 |
| Tullow Oil plc * | 250,778 | 860,875 |
| 92,734,935 | ||
| Food & Staples Retailing 0.3% | ||
| J Sainsbury plc | 447,836 | 1,671,649 |
| Tesco plc | 2,237,280 | 6,584,233 |
| William Morrison Supermarkets plc | 747,648 | 1,937,553 |
| 10,193,435 | ||
| Food, Beverage & Tobacco 2.0% | ||
| Associated British Foods plc | 104,784 | 5,160,273 |
| British American Tobacco plc | 509,842 | 27,280,128 |
| Coca-Cola HBC AG CDI * | 56,640 | 1,164,692 |
| Diageo plc | 708,000 | 18,838,041 |
| Imperial Tobacco Group plc | 280,368 | 13,621,798 |
| SABMiller plc | 257,987 | 12,117,785 |
| Tate & Lyle plc | 155,760 | 1,298,409 |
| 79,481,126 | ||
| Health Care Equipment & Services 0.1% | ||
| Smith & Nephew plc | 240,720 | 4,305,745 |
| Household & Personal Products 0.7% | ||
| Reckitt Benckiser Group plc | 179,885 | 15,927,498 |
| Unilever plc | 332,783 | 13,425,046 |
| 29,352,544 | ||
| Insurance 1.1% | ||
| Admiral Group plc | 43,972 | 1,048,249 |
| Aviva plc | 1,209,549 | 9,000,066 |
| Direct Line Insurance Group plc | 380,264 | 2,065,092 |
| Legal & General Group plc | 1,862,040 | 7,236,867 |
16 See financial notes
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Old Mutual plc | 1,461,463 | 4,499,956 |
| Prudential plc | 729,350 | 15,906,279 |
| RSA Insurance Group plc | 217,226 | 1,717,241 |
| St. James's Place plc | 97,704 | 1,375,711 |
| Standard Life plc | 493,358 | 3,157,303 |
| 46,006,764 | ||
| Materials 1.3% | ||
| Anglo American plc | 392,232 | 4,470,104 |
| Antofagasta plc | 73,632 | 689,668 |
| BHP Billiton plc | 584,760 | 10,180,766 |
| CRH plc | 217,818 | 6,438,779 |
| Croda International plc | 45,837 | 2,038,782 |
| DS Smith plc | 252,699 | 1,534,006 |
| Fresnillo plc | 35,400 | 337,833 |
| Glencore plc * | 2,931,455 | 6,686,222 |
| Johnson Matthey plc | 55,266 | 2,299,226 |
| Mondi plc | 95,125 | 2,162,347 |
| Polymetal International plc | 48,238 | 357,967 |
| Randgold Resources Ltd. | 24,072 | 1,465,730 |
| Rexam plc | 233,993 | 1,937,961 |
| Rio Tinto plc | 347,664 | 12,768,810 |
| 53,368,201 | ||
| Media 0.7% | ||
| Daily Mail & General Trust plc, A Shares | 62,304 | 786,711 |
| Informa plc | 110,448 | 983,542 |
| ITV plc | 1,294,224 | 4,980,273 |
| Pearson plc | 201,072 | 3,503,789 |
| RELX plc | 295,944 | 4,756,442 |
| Sky plc | 317,695 | 5,096,254 |
| WPP plc | 395,657 | 8,221,112 |
| 28,328,123 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 1.6% | ||
| AstraZeneca plc | 355,561 | 22,530,338 |
| GlaxoSmithKline plc | 1,360,745 | 28,054,333 |
| Hikma Pharmaceuticals plc | 36,832 | 1,288,733 |
| Shire plc | 166,482 | 12,866,479 |
| 64,739,883 | ||
| Real Estate 0.4% | ||
| Capital & Counties Properties plc | 117,296 | 800,080 |
| Derwent London plc | 15,663 | 869,397 |
| Hammerson plc | 300,192 | 2,899,447 |
| Intu Properties plc | 305,856 | 1,519,413 |
| Land Securities Group plc | 222,312 | 4,280,787 |
| Segro plc | 278,952 | 1,800,202 |
| The British Land Co. plc | 304,509 | 3,840,346 |
| 16,009,672 | ||
| Retailing 0.4% | ||
| Dixons Carphone plc | 195,954 | 1,300,142 |
| Inchcape plc | 82,012 | 921,412 |
| Kingfisher plc | 754,728 | 4,134,669 |
| Marks & Spencer Group plc | 461,616 | 3,702,470 |
| Next plc | 45,312 | 5,536,859 |
| Sports Direct International plc * | 81,725 | 998,003 |
| 16,593,555 | ||
| Semiconductors & Semiconductor Equipment 0.1% | ||
| ARM Holdings plc | 390,916 | 5,612,471 |
| Software & Services 0.1% | ||
| The Sage Group plc | 345,652 | 2,740,464 |
| Security | Number of Shares | Value ($) |
| Telecommunication Services 1.1% | ||
| BT Group plc | 2,270,932 | 15,275,296 |
| Inmarsat plc | 123,192 | 1,858,694 |
| TalkTalk Telecom Group plc | 143,065 | 662,082 |
| Vodafone Group plc | 7,329,294 | 25,554,656 |
| 43,350,728 | ||
| Transportation 0.1% | ||
| easyJet plc | 61,390 | 1,589,052 |
| International Consolidated Airlines Group S.A. * | 325,680 | 2,699,829 |
| Royal Mail plc | 150,719 | 1,075,579 |
| 5,364,460 | ||
| Utilities 0.8% | ||
| Centrica plc | 1,396,601 | 5,223,869 |
| Drax Group plc | 103,368 | 465,176 |
| National Grid plc | 1,022,887 | 13,531,096 |
| Pennon Group plc | 115,993 | 1,374,551 |
| Severn Trent plc | 72,216 | 2,306,887 |
| SSE plc | 298,776 | 6,759,503 |
| United Utilities Group plc | 194,549 | 2,558,300 |
| 32,219,382 | ||
| 723,592,725 | ||
| Total Common Stock | ||
| (Cost $4,119,071,698) | 4,008,525,131 | |
| Preferred Stock 0.4% of net assets | ||
| Germany 0.4% | ||
| Automobiles & Components 0.3% | ||
| Porsche Automobil Holding SE | 45,312 | 3,153,454 |
| Volkswagen AG | 41,477 | 7,877,506 |
| 11,030,960 | ||
| Household & Personal Products 0.1% | ||
| Henkel AG & Co. KGaA | 47,954 | 5,013,237 |
| Total Preferred Stock | ||
| (Cost $17,399,990) | 16,044,197 | |
| Rights 0.0% of net assets | ||
| Australia 0.0% | ||
| Banks 0.0% | ||
| Commonwealth Bank of Australia * | 19,568 | 49,248 |
| Total Rights | ||
| (Cost $—) | 49,248 | |
| Other Investment Companies 0.2% of net assets | ||
| United States 0.2% | ||
| Money Market Fund 0.0% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d) | 1,354,841 | 1,354,841 |
See financial notes 17
Schwab International Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Securities Lending Collateral 0.2% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d) | 5,643,088 | 5,643,088 |
| Total Other Investment Companies | ||
| (Cost $6,997,929) | 6,997,929 | |
End of Investments
At 08/31/15, the tax basis cost of the fund's investments was $4,152,351,001 and the unrealized appreciation and depreciation were $286,249,865 and ($406,984,361), respectively, with a net unrealized depreciation of ($120,734,496).
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $6,407,040. Non-cash collateral pledged to the fund for securities on loan amounted to $1,335,511. |
| (b) | Fair-valued by management in accordance with procedures approved by the Board of Trustees. |
| (c) | Illiquid security. At the period end, the value of these amounted to $0 or 0.0% of net assets. |
| (d) | The rate shown is the 7-day yield. |
| (e) | 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 $2,908,252 or 0.1% of net assets. |
| (f) | Securities are traded on separate exchanges for the same entity. |
| ADR — | American Depositary Receipt |
| CDI — | CHESS Depositary Interest |
| CVA — | Dutch Certificate |
| GDR — | Global Depositary Receipt |
| Reg'd — | Registered |
| REIT — | Real Estate Investment Trust |
| RSP — | Risparmio (Convertible Savings Shares) |
In addition to the above, the fund held the following at 8/31/15:
| Number of Contracts | Contract Value ($) | Unrealized Depreciation ($) | ||||
| Futures Contracts | ||||||
| MSCI EAFE, e-mini, Long, expires 09/18/15 | 25 | 2,165,875 | (131,890) | |||
18 See financial notes
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2015
This section shows all the securities in the fund's portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be viewed and copied at the SEC's Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund's website at www.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.0% | Common Stock | 593,339,624 | 603,888,842 |
| 0.3% | Preferred Stock | 1,798,214 | 2,006,072 |
| 0.0% | Rights | 17,940 | 35,681 |
| 1.9% | Other Investment Companies | 10,747,636 | 11,370,259 |
| 101.2% | Total Investments | 605,903,414 | 617,300,854 |
| (1.2%) | Other Assets and Liabilities, Net | (7,527,831) | |
| 100.0% | Net Assets | 609,773,023 | |
| Security | Number of Shares | Value ($) |
| Common Stock 99.0% of net assets | ||
| Australia 4.3% | ||
| Automobiles & Components 0.0% | ||
| ARB Corp., Ltd. | 23,436 | 225,299 |
| Banks 0.0% | ||
| Genworth Mortgage Insurance Australia Ltd. | 76,467 | 145,286 |
| Capital Goods 0.1% | ||
| Bradken Ltd. * | 84,060 | 69,427 |
| Cardno Ltd. | 37,789 | 74,746 |
| Monadelphous Group Ltd. | 24,652 | 131,252 |
| Seven Group Holdings Ltd. | 50,618 | 177,993 |
| UGL Ltd. | 63,040 | 89,384 |
| 542,802 | ||
| Commercial & Professional Services 0.3% | ||
| Cabcharge Australia Ltd. | 46,667 | 103,224 |
| McMillan Shakespeare Ltd. | 23,436 | 239,754 |
| Mineral Resources Ltd. | 53,904 | 167,000 |
| SAI Global Ltd. | 101,338 | 316,112 |
| SKILLED Group Ltd. | 116,762 | 137,412 |
| Spotless Group Holdings Ltd. | 169,010 | 238,441 |
| Transfield Services Ltd. * | 238,752 | 198,038 |
| Transpacific Industries Group Ltd. | 469,344 | 227,928 |
| Veda Group Ltd. | 263,456 | 390,364 |
| 2,018,273 | ||
| Consumer Durables & Apparel 0.1% | ||
| G.U.D. Holdings Ltd. | 39,841 | 251,665 |
| Consumer Services 0.5% | ||
| Ainsworth Game Technology Ltd. | 78,747 | 168,041 |
| Ardent Leisure Group | 181,825 | 315,817 |
| Domino's Pizza Enterprises Ltd. | 22,876 | 643,041 |
| Security | Number of Shares | Value ($) |
| G8 Education Ltd. | 156,380 | 345,901 |
| InvoCare Ltd. | 43,264 | 355,795 |
| Mantra Group Ltd. | 61,547 | 148,791 |
| Navitas Ltd. (c) | 126,410 | 356,681 |
| Retail Food Group Ltd. | 55,920 | 208,530 |
| Slater & Gordon Ltd. | 96,811 | 224,434 |
| 2,767,031 | ||
| Diversified Financials 0.2% | ||
| BT Investment Management Ltd. | 57,942 | 395,170 |
| FlexiGroup Ltd. | 115,342 | 231,414 |
| Magellan Financial Group Ltd. | 40,899 | 555,551 |
| OzForex Group Ltd. | 94,296 | 174,481 |
| 1,356,616 | ||
| Energy 0.2% | ||
| AWE Ltd. * | 217,727 | 143,552 |
| Beach Energy Ltd. | 531,846 | 252,625 |
| Drillsearch Energy Ltd. * | 157,610 | 69,836 |
| Karoon Gas Australia Ltd. * | 51,024 | 69,634 |
| Liquefied Natural Gas Ltd. *(c) | 151,404 | 299,473 |
| Paladin Energy Ltd. * | 495,798 | 68,542 |
| Senex Energy Ltd. * | 605,613 | 64,402 |
| 968,064 | ||
| Food, Beverage & Tobacco 0.2% | ||
| Australian Agricultural Co., Ltd. * | 117,264 | 110,568 |
| GrainCorp Ltd., Class A | 67,523 | 390,144 |
| Select Harvests Ltd. | 38,547 | 329,848 |
| Tassal Group Ltd. | 48,874 | 130,281 |
| 960,841 | ||
| Health Care Equipment & Services 0.3% | ||
| Australian Pharmaceutical Industries Ltd. | 163,123 | 187,925 |
| Capitol Health Ltd. | 208,110 | 91,475 |
| Estia Health Ltd. * | 39,044 | 187,118 |
| Greencross Ltd. | 33,608 | 139,861 |
| Japara Healthcare Ltd. | 118,007 | 224,212 |
| Primary Health Care Ltd. | 180,962 | 531,133 |
| Regis Healthcare Ltd. * | 42,030 | 178,187 |
| Sigma Pharmaceuticals Ltd. | 555,216 | 316,864 |
| 1,856,775 | ||
| Household & Personal Products 0.0% | ||
| Asaleo Care Ltd. | 141,724 | 181,358 |
| Insurance 0.1% | ||
| Cover-More Group Ltd. | 111,005 | 194,382 |
| nib Holdings Ltd. | 195,496 | 422,720 |
| Steadfast Group Ltd. | 141,279 | 154,246 |
| 771,348 | ||
| Materials 0.4% | ||
| Arrium Ltd. | 1,321,955 | 103,092 |
| Evolution Mining Ltd. | 304,506 | 220,197 |
| Independence Group NL | 94,224 | 221,108 |
| Jacana Minerals Ltd. (a)(b) | 8,715 | — |
| Northern Star Resources Ltd. | 226,762 | 324,741 |
| Pact Group Holdings Ltd. | 84,104 | 262,949 |
| Perseus Mining Ltd. * | 420,300 | 113,229 |
| Regis Resources Ltd. * | 157,610 | 162,578 |
| Sandfire Resources NL | 60,093 | 258,174 |
| Saracen Mineral Holdings Ltd. * | 420,051 | 131,030 |
| Sirius Resources NL * | 104,618 | 201,739 |
| Syrah Resources Ltd. * | 59,161 | 124,149 |
See financial notes 19
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| TFS Corp., Ltd. | 134,600 | 146,954 |
| Western Areas Ltd. | 92,644 | 181,277 |
| 2,451,217 | ||
| Media 0.1% | ||
| APN News & Media Ltd. * | 267,083 | 95,621 |
| Nine Entertainment Co. Holdings Ltd. | 217,032 | 255,415 |
| Southern Cross Media Group Ltd. | 273,362 | 182,172 |
| Ten Network Holdings Ltd. * | 873,470 | 114,561 |
| 647,769 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.1% | ||
| Mayne Pharma Group Ltd. * | 289,701 | 226,949 |
| Mesoblast Ltd. *(c) | 83,879 | 197,427 |
| Sirtex Medical Ltd. | 17,315 | 425,836 |
| 850,212 | ||
| Real Estate 0.6% | ||
| Abacus Property Group | 202,570 | 440,889 |
| Aveo Group | 184,298 | 363,229 |
| BWP Trust | 254,178 | 569,430 |
| Charter Hall Group | 143,360 | 451,260 |
| Charter Hall Retail REIT | 145,491 | 414,646 |
| Cromwell Property Group | 586,692 | 426,334 |
| Investa Office Fund | 238,050 | 649,747 |
| New South Resources Ltd. * | 121,764 | 136,393 |
| 3,451,928 | ||
| Retailing 0.4% | ||
| Automotive Holdings Group Ltd. | 150,589 | 437,716 |
| Breville Group Ltd. (c) | 42,265 | 194,165 |
| JB Hi-Fi Ltd. (c) | 43,900 | 591,335 |
| Myer Holdings Ltd. (c) | 247,055 | 211,931 |
| Premier Investments Ltd. | 36,561 | 321,407 |
| Super Retail Group Ltd. | 59,095 | 369,518 |
| The Reject Shop Ltd. | 16,254 | 97,948 |
| Thorn Group Ltd. | 96,284 | 170,651 |
| 2,394,671 | ||
| Software & Services 0.3% | ||
| Altium Ltd. | 50,832 | 146,312 |
| carsales.com Ltd. | 93,407 | 645,653 |
| IRESS Ltd. | 63,008 | 422,573 |
| iSentia Group Ltd. | 77,658 | 192,695 |
| NEXTDC Ltd. * | 101,451 | 169,740 |
| SMS Management & Technology Ltd. | 46,872 | 150,199 |
| Technology One Ltd. | 77,349 | 193,025 |
| 1,920,197 | ||
| Telecommunication Services 0.1% | ||
| M2 Group Ltd. | 66,044 | 428,888 |
| Vocus Communications Ltd. | 78,606 | 323,778 |
| 752,666 | ||
| Transportation 0.1% | ||
| Qube Holdings Ltd. | 267,528 | 417,261 |
| Virgin Australia Holdings Ltd. * | 679,467 | 223,994 |
| Virgin Australia International Holdings Ltd. (a)(b) | 424,000 | — |
| 641,255 | ||
| Security | Number of Shares | Value ($) |
| Utilities 0.2% | ||
| DUET Group | 725,295 | 1,126,093 |
| Energy World Corp., Ltd. * | 420,300 | 78,963 |
| 1,205,056 | ||
| 26,360,329 | ||
| Austria 0.8% | ||
| Capital Goods 0.2% | ||
| Semperit AG Holding | 2,811 | 109,925 |
| Wienerberger AG | 44,014 | 782,671 |
| Zumtobel Group AG | 10,039 | 288,867 |
| 1,181,463 | ||
| Energy 0.0% | ||
| Schoeller-Bleckmann Oilfield Equipment AG | 4,246 | 231,697 |
| Insurance 0.1% | ||
| UNIQA Insurance Group AG | 34,665 | 289,335 |
| Materials 0.1% | ||
| Lenzing AG | 1,773 | 123,152 |
| Mayr Melnhof Karton AG | 3,343 | 392,751 |
| RHI AG | 10,974 | 229,081 |
| 744,984 | ||
| Real Estate 0.3% | ||
| BUWOG AG * | 18,476 | 390,550 |
| CA Immobilien Anlagen AG * | 31,102 | 578,332 |
| Conwert Immobilien Invest SE * | 32,706 | 424,373 |
| S IMMO AG * | 25,300 | 218,369 |
| 1,611,624 | ||
| Transportation 0.1% | ||
| Flughafen Wien AG | 1,868 | 170,797 |
| Oesterreichische Post AG | 12,675 | 487,637 |
| 658,434 | ||
| Utilities 0.0% | ||
| EVN AG | 13,355 | 148,146 |
| 4,865,683 | ||
| Belgium 1.6% | ||
| Capital Goods 0.1% | ||
| Cie d'Entreprises CFE | 2,114 | 265,298 |
| Consumer Durables & Apparel 0.0% | ||
| Van de Velde N.V. | 3,214 | 196,090 |
| Diversified Financials 0.4% | ||
| Ackermans & van Haaren N.V. | 10,178 | 1,507,668 |
| BHF Kleinwort Benson Group * | 24,476 | 151,032 |
| Gimv N.V. | 5,835 | 276,562 |
| KBC Ancora | 6,664 | 266,796 |
| 2,202,058 | ||
| Energy 0.1% | ||
| Euronav S.A. | 39,855 | 531,648 |
| Health Care Equipment & Services 0.1% | ||
| AGFA-Gevaert N.V. * | 73,765 | 224,488 |
| Fagron | 10,818 | 287,281 |
| Ion Beam Applications | 6,032 | 186,916 |
| 698,685 | ||
| Household & Personal Products 0.1% | ||
| Ontex Group N.V. | 22,187 | 693,111 |
20 See financial notes
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Materials 0.2% | ||
| Bekaert N.V. | 12,892 | 373,705 |
| Nyrstar N.V. * | 117,796 | 295,790 |
| Tessenderlo Chemie N.V. * | 10,491 | 370,582 |
| 1,040,077 | ||
| Media 0.0% | ||
| Kinepolis Group N.V. | 4,261 | 176,153 |
| Pharmaceuticals, Biotechnology & Life Sciences 0.0% | ||
| ThromboGenics N.V. * | 9,770 | 32,754 |
| Real Estate 0.3% | ||
| Befimmo S.A. | 9,144 | 563,522 |
| Cofinimmo S.A. | 7,591 | 795,879 |
| Warehouses De Pauw SCA | 3,960 | 315,528 |
| 1,674,929 | ||
| Retailing 0.1% | ||
| D'Ieteren S.A. N.V. | 13,490 | 497,755 |
| Semiconductors & Semiconductor Equipment 0.1% | ||
| Melexis N.V. | 8,969 | 446,360 |
| Software & Services 0.0% | ||
| Econocom Group S.A. N.V. | 20,990 | 185,026 |
| Technology Hardware & Equipment 0.0% | ||
| Barco N.V. | 4,214 | 261,068 |
| Telecommunication Services 0.0% | ||
| Mobistar S.A. * | 10,605 | 220,665 |
| Utilities 0.1% | ||
| Elia System Operator S.A. N.V. | 9,798 | 442,824 |
| 9,564,501 | ||
| Canada 14.0% | ||
| Automobiles & Components 0.2% | ||
| Linamar Corp. | 19,180 | 996,264 |
| Martinrea International, Inc. | 32,439 | 285,015 |
| 1,281,279 | ||
| Banks 0.3% | ||
| Canadian Western Bank | 29,907 | 555,207 |
| Genworth MI Canada, Inc. | 15,611 | 357,627 |
| Home Capital Group, Inc. | 26,957 | 557,172 |
| Laurentian Bank of Canada | 8,495 | 309,153 |
| 1,779,159 | ||
| Capital Goods 0.8% | ||
| Aecon Group, Inc. | 27,857 | 267,159 |
| ATS Automation Tooling Systems, Inc. * | 37,917 | 387,862 |
| CAE, Inc. | 102,902 | 1,117,575 |
| MacDonald, Dettwiler & Associates Ltd. | 13,985 | 814,504 |
| Russel Metals, Inc. | 27,857 | 462,922 |
| Toromont Industries Ltd. | 33,535 | 883,177 |
| WSP Global, Inc. | 30,535 | 968,491 |
| 4,901,690 | ||
| Commercial & Professional Services 0.5% | ||
| Black Diamond Group Ltd. | 8,313 | 58,731 |
| Progressive Waste Solutions Ltd. | 46,683 | 1,274,353 |
| Ritchie Bros. Auctioneers, Inc. | 34,444 | 940,511 |
| Stantec, Inc. | 35,745 | 828,543 |
| Transcontinental, Inc., Class A | 25,300 | 272,871 |
| 3,375,009 | ||
| Security | Number of Shares | Value ($) |
| Consumer Durables & Apparel 0.5% | ||
| Dorel Industries, Inc., Class B | 12,051 | 320,907 |
| Gildan Activewear, Inc. | 88,696 | 2,753,209 |
| 3,074,116 | ||
| Consumer Services 0.2% | ||
| Amaya, Inc. * | 37,120 | 764,999 |
| Great Canadian Gaming Corp. * | 21,114 | 292,152 |
| 1,057,151 | ||
| Diversified Financials 0.7% | ||
| Canaccord Genuity Group, Inc. | 37,479 | 174,367 |
| Element Financial Corp. * | 92,801 | 1,312,675 |
| Onex Corp. | 33,754 | 2,032,090 |
| Sprott, Inc. | 59,533 | 100,676 |
| TMX Group Ltd. | 13,054 | 477,322 |
| 4,097,130 | ||
| Energy 3.1% | ||
| Advantage Oil & Gas Ltd. * | 62,593 | 344,838 |
| AltaGas Ltd. | 50,618 | 1,376,064 |
| Bankers Petroleum Ltd. * | 101,297 | 178,916 |
| Baytex Energy Corp. | 75,579 | 432,286 |
| Bellatrix Exploration Ltd. *(c) | 46,908 | 87,787 |
| Birchcliff Energy Ltd. * | 44,274 | 228,940 |
| Bonavista Energy Corp. | 78,316 | 240,746 |
| Bonterra Energy Corp. | 11,933 | 196,148 |
| Calfrac Well Services Ltd. | 30,536 | 105,574 |
| Canadian Energy Services & Technology Corp. | 69,193 | 399,921 |
| Enerflex Ltd. | 32,743 | 311,311 |
| Enerplus Corp. | 76,020 | 478,803 |
| Ensign Energy Services, Inc. | 49,524 | 391,576 |
| Gibson Energy, Inc. | 47,450 | 691,868 |
| Gran Tierra Energy, Inc. * | 104,634 | 257,161 |
| Kelt Exploration Ltd. * | 48,316 | 228,779 |
| Keyera Corp. | 62,117 | 1,885,219 |
| Mullen Group Ltd. | 30,712 | 441,117 |
| NuVista Energy Ltd. * | 55,900 | 239,061 |
| Pacific Exploration & Production Corp. | 116,075 | 389,098 |
| Paramount Resources Ltd., A Shares * | 19,970 | 211,332 |
| Parex Resources, Inc. * | 51,144 | 348,648 |
| Parkland Fuel Corp. | 26,812 | 457,648 |
| Pason Systems, Inc. | 27,857 | 429,213 |
| Pengrowth Energy Corp. | 201,022 | 291,599 |
| Penn West Petroleum Ltd. | 186,033 | 144,017 |
| Peyto Exploration & Development Corp. | 50,618 | 1,186,223 |
| PrairieSky Royalty Ltd. | 55,464 | 1,148,882 |
| Precision Drilling Corp. | 110,607 | 527,056 |
| Raging River Exploration, Inc. * | 63,645 | 402,296 |
| Secure Energy Services, Inc. | 48,209 | 385,889 |
| Seven Generations Energy Ltd., A Shares * | 53,097 | 548,330 |
| ShawCor Ltd. | 24,035 | 529,294 |
| Surge Energy, Inc. | 82,432 | 187,106 |
| TORC Oil & Gas Ltd. | 41,700 | 195,258 |
| Trican Well Service Ltd. * | 35,787 | 49,491 |
| Trilogy Energy Corp. | 15,242 | 55,103 |
| Trinidad Drilling Ltd. | 20,552 | 42,633 |
| Veresen, Inc. | 104,234 | 1,064,668 |
See financial notes 21
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Vermilion Energy, Inc. | 35,737 | 1,224,271 |
| Whitecap Resources, Inc. | 105,678 | 901,500 |
| 19,235,670 | ||
| Food & Staples Retailing 0.3% | ||
| Empire Co., Ltd., A Shares | 19,317 | 1,279,960 |
| The Jean Coutu Group PJC, Inc., A Shares | 31,861 | 484,441 |
| The North West Co., Inc. | 11,094 | 225,882 |
| 1,990,283 | ||
| Food, Beverage & Tobacco 0.2% | ||
| Cott Corp. | 37,760 | 394,202 |
| Maple Leaf Foods, Inc. | 34,934 | 586,041 |
| 980,243 | ||
| Health Care Equipment & Services 0.1% | ||
| Chartwell Retirement Residences | 61,945 | 542,862 |
| Extendicare, Inc. | 33,979 | 200,733 |
| 743,595 | ||
| Insurance 0.2% | ||
| Industrial Alliance Insurance & Financial Services, Inc. | 38,845 | 1,226,807 |
| Materials 2.3% | ||
| Alacer Gold Corp. * | 84,306 | 181,855 |
| Alamos Gold, Inc., Class A * | 101,914 | 415,163 |
| B2Gold Corp. * | 353,321 | 408,955 |
| Canfor Corp. * | 31,477 | 475,526 |
| Capstone Mining Corp. * | 107,592 | 50,137 |
| Cascades, Inc. | 18,916 | 121,984 |
| CCL Industries, Inc., Class B | 12,068 | 1,560,087 |
| Centerra Gold, Inc. | 54,258 | 271,188 |
| China Gold International Resources Corp., Ltd. * | 68,318 | 97,047 |
| Detour Gold Corp. * | 64,224 | 641,516 |
| Dominion Diamond Corp. | 29,652 | 348,559 |
| First Majestic Silver Corp. * | 2,560 | 8,735 |
| HudBay Minerals, Inc. | 87,476 | 433,271 |
| IAMGOLD Corp. * | 154,478 | 256,593 |
| Imperial Metals Corp. * | 20,641 | 136,055 |
| Kinross Gold Corp. * | 425,294 | 751,177 |
| Lundin Mining Corp. * | 235,670 | 791,766 |
| Major Drilling Group International, Inc. | 13,853 | 42,064 |
| Methanex Corp. | 34,107 | 1,380,173 |
| Nevsun Resources Ltd. | 76,020 | 225,689 |
| New Gold, Inc. * | 190,900 | 434,744 |
| Norbord, Inc. | 16,246 | 263,868 |
| NOVAGOLD RESOURCES, Inc. * | 93,468 | 345,631 |
| OceanaGold Corp. | 120,195 | 209,585 |
| Osisko Gold Royalties Ltd. | 32,468 | 372,632 |
| Pan American Silver Corp. | 56,674 | 388,902 |
| Pretium Resources, Inc. * | 40,411 | 213,824 |
| Primero Mining Corp. * | 60,528 | 173,327 |
| SEMAFO, Inc. * | 106,035 | 259,808 |
| Silver Standard Resources, Inc. * | 22,100 | 140,689 |
| Stella-Jones, Inc. | 16,560 | 556,356 |
| Tahoe Resources, Inc. | 80,492 | 665,473 |
| Torex Gold Resources, Inc. * | 307,659 | 286,732 |
| West Fraser Timber Co., Ltd. | 22,870 | 880,594 |
| 13,789,705 | ||
| Security | Number of Shares | Value ($) |
| Media 0.5% | ||
| Aimia, Inc. | 68,961 | 593,982 |
| Cineplex, Inc. | 25,300 | 910,078 |
| Cogeco Cable, Inc. | 5,619 | 280,464 |
| Corus Entertainment, Inc., B Shares | 28,058 | 301,352 |
| Quebecor, Inc., Class B | 34,686 | 735,171 |
| Torstar Corp., Class B | 26,562 | 79,257 |
| 2,900,304 | ||
| Real Estate 1.5% | ||
| Allied Properties Real Estate Investment Trust | 27,180 | 712,134 |
| Artis Real Estate Investment Trust | 51,804 | 477,352 |
| Boardwalk Real Estate Investment Trust | 14,953 | 612,843 |
| Canadian Apartment Properties REIT | 43,470 | 914,814 |
| Canadian Real Estate Investment Trust | 24,860 | 766,073 |
| Colliers International Group, Inc. | 11,452 | 499,395 |
| Cominar Real Estate Investment Trust | 54,477 | 664,533 |
| Dream Office Real Estate Investment Trust | 37,742 | 603,078 |
| Dream Unlimited Corp., Class A * | 24,229 | 150,236 |
| First Capital Realty, Inc. | 33,397 | 436,508 |
| Granite Real Estate Investment Trust | 17,884 | 516,962 |
| H&R Real Estate Investment Trust | 95,961 | 1,489,361 |
| InnVest Real Estate Investment Trust | 23,436 | 92,476 |
| Morguard Real Estate Investment Trust | 15,761 | 171,292 |
| Northern Property Real Estate Investment Trust | 12,256 | 190,680 |
| Smart Real Estate Investment Trust | 36,458 | 802,049 |
| 9,099,786 | ||
| Retailing 0.6% | ||
| AutoCanada, Inc. | 6,688 | 151,052 |
| Dollarama, Inc. | 42,343 | 2,390,685 |
| Hudson's Bay Co. | 41,489 | 711,596 |
| RONA, Inc. | 48,122 | 513,591 |
| 3,766,924 | ||
| Software & Services 0.9% | ||
| Constellation Software, Inc. | 5,804 | 2,452,512 |
| DH Corp. | 37,054 | 1,188,624 |
| Open Text Corp. | 45,401 | 2,036,135 |
| 5,677,271 | ||
| Technology Hardware & Equipment 0.2% | ||
| Avigilon Corp. * | 13,950 | 145,738 |
| Celestica, Inc. * | 52,817 | 638,330 |
| Sierra Wireless, Inc. * | 11,592 | 257,019 |
| 1,041,087 | ||
| Telecommunication Services 0.1% | ||
| Manitoba Telecom Services, Inc. | 20,961 | 447,263 |
| Transportation 0.1% | ||
| TransForce, Inc. | 29,257 | 520,711 |
| Westshore Terminals Investment Corp. | 20,395 | 406,060 |
| 926,771 | ||
22 See financial notes
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Utilities 0.7% | ||
| Algonquin Power & Utilities Corp. | 67,351 | 495,072 |
| Atco Ltd., Class I | 29,214 | 871,699 |
| Capital Power Corp. | 39,655 | 609,802 |
| Emera, Inc. | 13,577 | 464,914 |
| Innergex Renewable Energy, Inc. | 28,648 | 227,160 |
| Just Energy Group, Inc. | 44,312 | 264,107 |
| Northland Power, Inc. | 33,744 | 416,442 |
| Superior Plus Corp. | 50,618 | 436,749 |
| TransAlta Corp. | 92,145 | 455,704 |
| 4,241,649 | ||
| 85,632,892 | ||
| Denmark 1.6% | ||
| Banks 0.2% | ||
| Spar Nord Bank A/S | 31,752 | 376,579 |
| Sydbank A/S | 25,890 | 984,131 |
| 1,360,710 | ||
| Capital Goods 0.3% | ||
| FLSmidth & Co. A/S | 18,476 | 698,427 |
| NKT Holding A/S | 10,048 | 543,351 |
| Rockwool International A/S, B Shares | 2,793 | 379,889 |
| Solar A/S, B Shares | 2,120 | 136,060 |
| 1,757,727 | ||
| Consumer Durables & Apparel 0.0% | ||
| Bang & Olufsen A/S * | 12,650 | 88,878 |
| Food, Beverage & Tobacco 0.1% | ||
| Royal Unibrew A/S | 15,118 | 501,584 |
| Schouw & Co. | 4,180 | 231,872 |
| 733,456 | ||
| Health Care Equipment & Services 0.2% | ||
| Ambu A/S, Class B | 8,501 | 262,902 |
| GN Store Nord A/S | 60,937 | 1,086,813 |
| 1,349,715 | ||
| Insurance 0.1% | ||
| Topdanmark A/S * | 30,941 | 860,266 |
| Pharmaceuticals, Biotechnology & Life Sciences 0.4% | ||
| ALK-Abello A/S | 2,313 | 281,266 |
| Bavarian Nordic A/S * | 7,041 | 318,169 |
| Genmab A/S * | 17,231 | 1,545,631 |
| 2,145,066 | ||
| Retailing 0.1% | ||
| Matas A/S | 15,130 | 302,098 |
| Software & Services 0.1% | ||
| SimCorp A/S | 14,206 | 680,330 |
| Transportation 0.1% | ||
| Dfds A/S | 2,372 | 386,725 |
| 9,664,971 | ||
| Finland 1.8% | ||
| Capital Goods 0.5% | ||
| Cargotec Oyj, B Shares | 15,820 | 500,945 |
| Cramo Oyj | 9,069 | 184,132 |
| Konecranes Oyj | 21,702 | 684,040 |
| Outotec Oyj (c) | 73,135 | 424,899 |
| Security | Number of Shares | Value ($) |
| Ramirent Oyj | 30,511 | 246,834 |
| Uponor Oyj | 20,782 | 333,925 |
| Valmet Oyj | 50,412 | 507,250 |
| YIT Oyj | 47,524 | 275,838 |
| 3,157,863 | ||
| Commercial & Professional Services 0.1% | ||
| Caverion Corp. | 47,044 | 490,229 |
| Consumer Durables & Apparel 0.2% | ||
| Amer Sports Oyj | 46,422 | 1,270,747 |
| Food, Beverage & Tobacco 0.1% | ||
| Raisio Oyj, V Shares | 45,196 | 210,671 |
| Health Care Equipment & Services 0.0% | ||
| Oriola-KD Oyj, B Shares * | 38,191 | 183,582 |
| Materials 0.4% | ||
| Huhtamaki Oyj | 39,842 | 1,295,092 |
| Kemira Oyj | 26,983 | 320,787 |
| Metsa Board Oyj | 78,764 | 483,638 |
| Outokumpu Oyj *(c) | 76,443 | 328,741 |
| 2,428,258 | ||
| Media 0.0% | ||
| Sanoma Oyj (c) | 21,222 | 78,852 |
| Real Estate 0.1% | ||
| Citycon Oyj * | 140,838 | 352,861 |
| Sponda Oyj | 89,743 | 360,999 |
| 713,860 | ||
| Software & Services 0.1% | ||
| Tieto Oyj | 27,373 | 702,069 |
| Telecommunication Services 0.3% | ||
| Elisa Oyj | 57,614 | 1,917,327 |
| Transportation 0.0% | ||
| Finnair Oyj * | 26,954 | 87,586 |
| 11,241,044 | ||
| France 3.6% | ||
| Automobiles & Components 0.2% | ||
| Faurecia | 23,031 | 830,186 |
| Plastic Omnium S.A. | 23,114 | 597,884 |
| 1,428,070 | ||
| Capital Goods 0.3% | ||
| LISI | 6,536 | 188,948 |
| Manitou BF S.A. | 4,183 | 80,617 |
| Mersen | 8,759 | 197,958 |
| Nexans S.A. * | 14,584 | 569,660 |
| Saft Groupe S.A. | 12,070 | 440,626 |
| Tarkett S.A. | 7,314 | 170,135 |
| 1,647,944 | ||
| Commercial & Professional Services 0.4% | ||
| Derichebourg S.A. * | 9,074 | 29,821 |
| Elior Participations S.C.A. (e) | 22,380 | 454,140 |
| Elis S.A. | 12,600 | 199,915 |
| Teleperformance | 22,776 | 1,601,667 |
| 2,285,543 | ||
| Consumer Durables & Apparel 0.1% | ||
| Beneteau S.A. | 15,324 | 226,651 |
| Trigano S.A. | 3,454 | 144,901 |
| 371,552 | ||
See financial notes 23
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Diversified Financials 0.2% | ||
| Coface S.A. * | 27,765 | 260,894 |
| Euronext N.V. (e) | 25,091 | 1,146,648 |
| 1,407,542 | ||
| Energy 0.2% | ||
| Bourbon S.A. | 10,165 | 139,526 |
| CGG S.A. * | 61,516 | 293,843 |
| Etablissements Maurel et Prom * | 32,595 | 171,438 |
| Gaztransport Et Technigaz S.A. | 5,200 | 269,830 |
| MPI | 47,851 | 146,374 |
| 1,021,011 | ||
| Food & Staples Retailing 0.0% | ||
| Rallye S.A. | 11,861 | 289,594 |
| Food, Beverage & Tobacco 0.1% | ||
| Bonduelle S.C.A. | 6,948 | 193,541 |
| Vilmorin & Cie S.A. | 2,763 | 213,217 |
| 406,758 | ||
| Health Care Equipment & Services 0.4% | ||
| Korian S.A. | 16,402 | 574,234 |
| Orpea | 16,248 | 1,251,654 |
| Sartorius Stedim Biotech | 1,420 | 454,501 |
| 2,280,389 | ||
| Materials 0.1% | ||
| Eramet *(c) | 3,195 | 180,790 |
| Vicat | 7,988 | 536,138 |
| 716,928 | ||
| Media 0.4% | ||
| Havas S.A. | 67,930 | 573,150 |
| IPSOS | 15,375 | 350,497 |
| Metropole Television S.A. | 27,175 | 524,799 |
| Societe d'Edition de Canal | 501 | 4,485 |
| Solocal Group * | 214,125 | 78,936 |
| Technicolor S.A. - Reg'd | 106,225 | 787,827 |
| 2,319,694 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.4% | ||
| Boiron S.A. | 1,532 | 163,369 |
| DBV Technologies S.A. * | 7,475 | 613,942 |
| Eurofins Scientific SE | 3,186 | 1,066,868 |
| Genfit * | 7,101 | 298,216 |
| Virbac S.A. | 1,760 | 404,079 |
| 2,546,474 | ||
| Real Estate 0.1% | ||
| Mercialys S.A. | 16,856 | 378,687 |
| Nexity S.A. | 10,876 | 485,573 |
| 864,260 | ||
| Retailing 0.0% | ||
| Groupe Fnac S.A. * | 4,224 | 240,152 |
| Semiconductors & Semiconductor Equipment 0.0% | ||
| SOITEC * | 89,565 | 58,207 |
| Software & Services 0.4% | ||
| Alten S.A. | 9,580 | 456,104 |
| Altran Technologies S.A. | 46,577 | 522,156 |
| GameLoft SE * | 23,436 | 91,385 |
| Sopra Steria Group | 4,643 | 487,941 |
| UBISOFT Entertainment * | 38,717 | 724,269 |
| 2,281,855 | ||
| Security | Number of Shares | Value ($) |
| Technology Hardware & Equipment 0.1% | ||
| Neopost S.A. | 13,568 | 467,871 |
| Parrot S.A. * | 3,542 | 150,259 |
| 618,130 | ||
| Utilities 0.2% | ||
| Rubis S.C.A. | 13,733 | 973,126 |
| 21,757,229 | ||
| Germany 5.5% | ||
| Automobiles & Components 0.2% | ||
| ElringKlinger AG | 15,195 | 363,505 |
| Leoni AG | 13,962 | 846,832 |
| 1,210,337 | ||
| Banks 0.1% | ||
| Aareal Bank AG | 20,598 | 765,796 |
| Capital Goods 1.3% | ||
| Bauer AG | 3,781 | 68,209 |
| BayWa AG | 7,512 | 253,610 |
| Deutz AG | 40,420 | 236,417 |
| DMG Mori AG | 14,643 | 560,069 |
| Duerr AG | 5,838 | 451,362 |
| Heidelberger Druckmaschinen AG * | 56,181 | 135,974 |
| Indus Holding AG | 5,770 | 270,087 |
| KION Group AG * | 22,020 | 978,547 |
| Kloeckner & Co. SE (c) | 42,329 | 383,421 |
| Krones AG | 5,913 | 632,339 |
| KUKA AG | 9,522 | 757,741 |
| Nordex SE * | 23,201 | 668,375 |
| Norma Group SE | 13,980 | 688,302 |
| Pfeiffer Vacuum Technology AG | 4,012 | 424,550 |
| Rational AG | 1,572 | 645,298 |
| Rheinmetall AG | 4,901 | 302,146 |
| SGL Carbon SE *(c) | 24,274 | 393,298 |
| Vossloh AG * | 2,770 | 200,660 |
| Wacker Neuson SE | 6,720 | 111,892 |
| 8,162,297 | ||
| Commercial & Professional Services 0.1% | ||
| Bertrandt AG | 1,307 | 141,880 |
| Bilfinger SE | 11,820 | 474,477 |
| 616,357 | ||
| Consumer Durables & Apparel 0.1% | ||
| Gerry Weber International AG | 11,817 | 261,641 |
| Diversified Financials 0.1% | ||
| Aurelius AG | 5,838 | 282,592 |
| Deutsche Beteiligungs AG | 4,848 | 149,113 |
| Grenkeleasing AG | 2,304 | 378,984 |
| 810,689 | ||
| Food, Beverage & Tobacco 0.0% | ||
| KWS Saat SE | 687 | 224,469 |
| Health Care Equipment & Services 0.1% | ||
| Carl Zeiss Meditec AG | 4,997 | 132,839 |
| CompuGroup Medical AG | 6,280 | 193,616 |
| Rhoen-Klinikum AG | 18,521 | 495,784 |
| 822,239 | ||
24 See financial notes
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Materials 0.3% | ||
| Aurubis AG | 17,483 | 1,159,710 |
| Salzgitter AG | 16,238 | 505,357 |
| 1,665,067 | ||
| Media 0.2% | ||
| CTS Eventim AG & Co., KGaA | 12,357 | 431,649 |
| Stroeer SE | 8,770 | 515,906 |
| 947,555 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.4% | ||
| Gerresheimer AG | 10,609 | 768,282 |
| MorphoSys AG * | 9,634 | 680,402 |
| STADA Arzneimittel AG | 25,334 | 871,189 |
| 2,319,873 | ||
| Real Estate 1.6% | ||
| alstria Office REIT-AG * | 33,998 | 454,280 |
| Deutsche Annington Immobilien SE | 160,066 | 5,234,444 |
| Deutsche Euroshop AG | 18,712 | 831,857 |
| DIC Asset AG | 12,690 | 115,061 |
| Grand City Properties S.A. | 28,592 | 504,908 |
| LEG Immobilien AG * | 21,094 | 1,580,764 |
| Patrizia Immobilien AG * | 15,207 | 356,806 |
| TAG Immobilien AG | 43,914 | 501,405 |
| 9,579,525 | ||
| Retailing 0.0% | ||
| Takkt AG | 9,591 | 195,483 |
| Semiconductors & Semiconductor Equipment 0.3% | ||
| AIXTRON SE *(c) | 37,491 | 239,450 |
| Dialog Semiconductor plc * | 27,345 | 1,310,322 |
| 1,549,772 | ||
| Software & Services 0.2% | ||
| Bechtle AG | 4,805 | 416,398 |
| Nemetschek AG | 6,730 | 235,052 |
| Software AG | 21,055 | 581,782 |
| 1,233,232 | ||
| Technology Hardware & Equipment 0.1% | ||
| Jenoptik AG | 19,459 | 262,518 |
| Wincor Nixdorf AG | 10,221 | 435,200 |
| 697,718 | ||
| Telecommunication Services 0.3% | ||
| Drillisch AG | 15,596 | 704,604 |
| Freenet AG | 41,274 | 1,312,042 |
| 2,016,646 | ||
| Transportation 0.1% | ||
| Hamburger Hafen und Logistik AG | 6,948 | 126,471 |
| Sixt SE | 4,761 | 213,521 |
| 339,992 | ||
| 33,418,688 | ||
| Greece 0.3% | ||
| Banks 0.0% | ||
| Eurobank Ergasias S.A. * | 3,024,936 | 122,020 |
| Capital Goods 0.0% | ||
| Ellaktor S.A. * | 63,114 | 87,692 |
| Metka S.A. | 9,700 | 73,256 |
| 160,948 | ||
| Security | Number of Shares | Value ($) |
| Diversified Financials 0.0% | ||
| Hellenic Exchanges - Athens Stock Exchange S.A. Holding | 18,680 | 90,212 |
| Energy 0.1% | ||
| Hellenic Petroleum S.A. * | 22,250 | 107,952 |
| Motor Oil Hellas Corinth Refineries S.A. * | 17,505 | 182,413 |
| 290,365 | ||
| Materials 0.1% | ||
| Mytilineos Holdings S.A. * | 25,651 | 130,489 |
| Titan Cement Co. S.A. | 15,548 | 326,131 |
| 456,620 | ||
| Real Estate 0.0% | ||
| Grivalia Properties REIC | 12,800 | 111,871 |
| Retailing 0.1% | ||
| FF Group * | 11,964 | 254,707 |
| JUMBO S.A. | 34,100 | 286,568 |
| 541,275 | ||
| Utilities 0.0% | ||
| Public Power Corp. S.A. | 33,915 | 154,287 |
| The Athens Water Supply & Sewage Co. S.A. | 15,118 | 84,021 |
| 238,308 | ||
| 2,011,619 | ||
| Hong Kong 2.2% | ||
| Automobiles & Components 0.1% | ||
| Minth Group Ltd. | 233,970 | 406,954 |
| Nexteer Automotive Group Ltd. | 259,457 | 244,390 |
| Xinchen China Power Holdings Ltd. *(c) | 293,980 | 60,693 |
| 712,037 | ||
| Capital Goods 0.1% | ||
| FDG Electric Vehicles Ltd. *(c) | 4,140,000 | 256,411 |
| Louis XIII Holdings Ltd. * | 480,581 | 146,964 |
| Summit Ascent Holdings Ltd. *(c) | 349,512 | 147,471 |
| 550,846 | ||
| Consumer Durables & Apparel 0.2% | ||
| Goodbaby International Holdings Ltd. * | 414,000 | 162,394 |
| Haier Healthwise Holdings Ltd. *(c) | 1,118,945 | 76,521 |
| Man Wah Holdings Ltd. (c) | 331,200 | 350,001 |
| Pacific Textiles Holdings Ltd. | 220,485 | 315,790 |
| Stella International Holdings Ltd. | 139,437 | 344,002 |
| 1,248,708 | ||
| Consumer Services 0.1% | ||
| China LotSynergy Holdings Ltd. | 2,893,932 | 119,491 |
| Dynam Japan Holdings Co., Ltd. | 133,436 | 173,207 |
| NagaCorp Ltd. (c) | 507,535 | 313,033 |
| REXLot Holdings Ltd. (a)(c) | 3,330,028 | 94,529 |
| 700,260 | ||
| Diversified Financials 0.3% | ||
| China Financial International Investments Ltd. * | 1,488,651 | 167,112 |
| China LNG Group Ltd. (c) | 5,903,230 | 205,660 |
| China Smarter Energy Group Holdings Ltd. *(c) | 1,564,827 | 179,702 |
See financial notes 25
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Guotai Junan International Holdings Ltd. (c) | 877,491 | 229,844 |
| Haitong International Securities Group Ltd. | 885,825 | 451,482 |
| Shenwan Hongyuan HK Ltd. | 163,007 | 63,940 |
| Sun Hung Kai & Co., Ltd. | 179,961 | 114,942 |
| Value Partners Group Ltd. | 353,709 | 319,021 |
| 1,731,703 | ||
| Energy 0.1% | ||
| NewOcean Energy Holdings Ltd. (c) | 423,966 | 175,603 |
| Sino Oil & Gas Holdings Ltd. *(c) | 8,407,435 | 196,353 |
| SPT Energy Group, Inc. *(c) | 516,073 | 50,608 |
| Yanchang Petroleum International Ltd. * | 2,083,575 | 62,641 |
| 485,205 | ||
| Food, Beverage & Tobacco 0.1% | ||
| Imperial Pacific International Holdings Ltd. *(c) | 15,879,004 | 389,289 |
| Health Care Equipment & Services 0.1% | ||
| Town Health International Medical Group Ltd. (c) | 1,650,211 | 368,367 |
| Materials 0.2% | ||
| AMVIG Holdings Ltd. | 276,064 | 106,863 |
| G-Resources Group Ltd. | 10,605,868 | 281,909 |
| KuangChi Science Ltd. *(c) | 702,086 | 165,782 |
| MMG Ltd. * | 816,645 | 168,597 |
| Superb Summit International Group Ltd. *(a)(b)(c) | 1,120,000 | 52,748 |
| Yingde Gases Group Co., Ltd. | 451,517 | 188,179 |
| 964,078 | ||
| Media 0.0% | ||
| Hong Kong Television Network Ltd. * | 243,858 | 53,806 |
| TOM Group Ltd. * | 708,864 | 142,686 |
| 196,492 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.1% | ||
| China Animal Healthcare Ltd. *(a)(b)(c) | 192,752 | 84,064 |
| Lee's Pharmaceutical Holdings Ltd. | 112,684 | 158,193 |
| The United Laboratories International Holdings Ltd. * | 223,087 | 111,687 |
| 353,944 | ||
| Real Estate 0.4% | ||
| Far East Consortium International Ltd. | 557,151 | 222,859 |
| Fortune Real Estate Investment Trust (c) | 513,418 | 502,153 |
| Goldin Properties Holdings Ltd. *(c) | 520,950 | 497,420 |
| K Wah International Holdings Ltd. | 461,939 | 208,616 |
| Lai Sun Development Co., Ltd. | 5,258,945 | 90,250 |
| Midland Holdings Ltd. *(c) | 440,970 | 177,525 |
| Sunlight Real Estate Investment Trust | 461,939 | 223,517 |
| Yuexiu Real Estate Investment Trust | 584,885 | 307,912 |
| 2,230,252 | ||
| Retailing 0.1% | ||
| Chow Sang Sang Holdings International Ltd. | 110,984 | 218,530 |
| Giordano International Ltd. | 461,939 | 251,531 |
| Security | Number of Shares | Value ($) |
| Luk Fook Holdings International Ltd. | 119,951 | 309,549 |
| Springland International Holdings Ltd. | 414,000 | 109,509 |
| 889,119 | ||
| Semiconductors & Semiconductor Equipment 0.0% | ||
| United Photovoltaics Group Ltd. * | 1,295,940 | 110,363 |
| Varitronix International Ltd. | 210,150 | 147,782 |
| 258,145 | ||
| Technology Hardware & Equipment 0.1% | ||
| GCL New Energy Holdings Ltd. *(c) | 2,115,961 | 128,322 |
| Ju Teng International Holdings Ltd. | 492,041 | 187,927 |
| Suncorp Technologies Ltd. *(c) | 5,667,290 | 165,996 |
| TCL Communication Technology Holdings Ltd. (c) | 175,443 | 118,621 |
| Truly International Holdings Ltd. | 635,968 | 156,734 |
| 757,600 | ||
| Telecommunication Services 0.1% | ||
| APT Satellite Holdings Ltd. | 133,847 | 97,405 |
| CITIC Telecom International Holdings Ltd. | 621,000 | 198,719 |
| SmarTone Telecommunications Holding Ltd. | 177,533 | 318,412 |
| 614,536 | ||
| Transportation 0.1% | ||
| Pacific Basin Shipping Ltd. | 653,135 | 204,788 |
| SITC International Holdings Co., Ltd. | 446,971 | 224,349 |
| 429,137 | ||
| Utilities 0.0% | ||
| CGN Meiya Power Holdings Co., Ltd. *(e) | 420,300 | 100,329 |
| Kong Sun Holdings Ltd. * | 1,972,332 | 201,049 |
| 301,378 | ||
| 13,181,096 | ||
| Ireland 0.9% | ||
| Capital Goods 0.3% | ||
| Kingspan Group plc | 65,929 | 1,617,828 |
| Consumer Services 0.2% | ||
| Paddy Power plc | 12,753 | 1,400,394 |
| Food, Beverage & Tobacco 0.3% | ||
| C&C Group plc | 143,388 | 570,365 |
| Glanbia plc | 58,602 | 1,173,407 |
| 1,743,772 | ||
| Insurance 0.0% | ||
| FBD Holdings plc | 2,994 | 20,179 |
| Real Estate 0.1% | ||
| Green REIT plc | 225,863 | 380,884 |
| 5,163,057 | ||
| Israel 0.4% | ||
| Capital Goods 0.0% | ||
| Electra Ltd. | 728 | 94,815 |
| Energy 0.0% | ||
| Naphtha Israel Petroleum Corp., Ltd. * | 25,502 | 145,846 |
26 See financial notes
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Food & Staples Retailing 0.0% | ||
| Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. | 5,049 | 224,585 |
| Insurance 0.0% | ||
| Menorah Mivtachim Holdings Ltd. | 23,436 | 223,087 |
| Pharmaceuticals, Biotechnology & Life Sciences 0.0% | ||
| Compugen Ltd. * | 21,136 | 108,359 |
| Real Estate 0.2% | ||
| Africa Israel Properties Ltd. | 7,081 | 104,031 |
| Alony Hetz Properties & Investments Ltd. | 29,274 | 224,638 |
| Jerusalem Oil Exploration * | 4,260 | 171,190 |
| Nitsba Holdings 1995 Ltd. * | 10,818 | 194,459 |
| Reit 1 Ltd. | 62,767 | 178,525 |
| 872,843 | ||
| Semiconductors & Semiconductor Equipment 0.1% | ||
| EZchip Semiconductor Ltd. * | 11,939 | 267,047 |
| Nova Measuring Instruments Ltd. * | 22,653 | 247,014 |
| Tower Semiconductor Ltd. * | 18,521 | 225,637 |
| 739,698 | ||
| Technology Hardware & Equipment 0.1% | ||
| Ituran Location and Control Ltd. | 10,039 | 243,687 |
| 2,652,920 | ||
| Italy 4.0% | ||
| Automobiles & Components 0.1% | ||
| Brembo S.p.A. | 7,734 | 320,727 |
| Piaggio & C S.p.A. | 88,670 | 250,771 |
| 571,498 | ||
| Banks 1.0% | ||
| Banca Carige S.p.A. * | 245,219 | 455,290 |
| Banca Popolare dell'Emilia Romagna SC | 171,832 | 1,470,988 |
| Banca Popolare di Milano Scarl | 1,634,064 | 1,733,011 |
| Banca Popolare di Sondrio Scarl | 175,010 | 863,619 |
| Credito Emiliano S.p.A. | 29,471 | 236,604 |
| Credito Valtellinese Scarl * | 430,477 | 596,666 |
| FinecoBank Banca Fineco S.p.A. | 65,619 | 508,433 |
| 5,864,611 | ||
| Capital Goods 0.3% | ||
| Astaldi S.p.A. (c) | 20,148 | 220,001 |
| C.I.R. - Compagnie Industriali Riunite S.p.A * | 87,184 | 80,496 |
| Cofide S.p.A. * | 56,482 | 26,220 |
| Danieli & C Officine Meccaniche S.p.A. | 15,418 | 227,178 |
| Industria Macchine Automatiche S.p.A. | 4,823 | 222,544 |
| Interpump Group S.p.A. | 35,196 | 478,766 |
| Salini Impregilo S.p.A | 84,104 | 351,133 |
| 1,606,338 | ||
| Consumer Durables & Apparel 0.3% | ||
| Brunello Cucinelli S.p.A. | 6,948 | 126,199 |
| De'Longhi S.p.A. | 17,888 | 442,159 |
| Moncler S.p.A. | 49,090 | 887,236 |
| Security | Number of Shares | Value ($) |
| Safilo Group S.p.A. * | 8,365 | 97,479 |
| Tod's S.p.A. | 6,877 | 628,398 |
| 2,181,471 | ||
| Consumer Services 0.1% | ||
| Autogrill S.p.A. * | 43,356 | 375,284 |
| Diversified Financials 0.4% | ||
| Anima Holding S.p.A. (e) | 76,212 | 722,019 |
| Azimut Holding S.p.A. | 45,037 | 992,121 |
| Banca Generali S.p.A. | 21,563 | 645,591 |
| Cerved Information Solutions S.p.A. * | 36,870 | 303,649 |
| DeA Capital S.p.A. | 18,396 | 27,786 |
| 2,691,166 | ||
| Energy 0.1% | ||
| ERG S.p.A. | 31,986 | 456,247 |
| Saras S.p.A. * | 140,784 | 357,458 |
| 813,705 | ||
| Food & Staples Retailing 0.0% | ||
| MARR S.p.A. | 2,247 | 43,054 |
| Health Care Equipment & Services 0.2% | ||
| Amplifon S.p.A. | 24,882 | 199,901 |
| DiaSorin S.p.A. | 8,925 | 410,419 |
| Sorin S.p.A. * | 173,901 | 545,597 |
| 1,155,917 | ||
| Insurance 0.2% | ||
| Societa Cattolica di Assicurazioni Scarl | 54,931 | 388,689 |
| Unipol Gruppo Finanziario S.p.A. | 208,826 | 983,692 |
| 1,372,381 | ||
| Materials 0.3% | ||
| Buzzi Unicem S.p.A. | 29,112 | 495,497 |
| Cementir Holding S.p.A. | 17,050 | 101,636 |
| Italcementi S.p.A. | 68,728 | 767,787 |
| Italmobiliare S.p.A. | 2,344 | 97,625 |
| Italmobiliare S.p.A. - RSP | 7,283 | 209,891 |
| Zignago Vetro S.p.A. | 5,357 | 32,924 |
| 1,705,360 | ||
| Media 0.0% | ||
| RAI Way S.p.A. (e) | 7,414 | 40,723 |
| RCS MediaGroup S.p.A. * | 165,466 | 178,544 |
| 219,267 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.2% | ||
| Recordati S.p.A. | 44,645 | 1,062,025 |
| Real Estate 0.1% | ||
| Beni Stabili S.p.A. | 406,009 | 314,359 |
| Immobiliare Grande Distribuzione | 119,025 | 111,562 |
| 425,921 | ||
| Retailing 0.2% | ||
| World Duty Free S.p.A. * | 39,769 | 455,861 |
| Yoox S.p.A. * | 20,314 | 640,973 |
| 1,096,834 | ||
| Technology Hardware & Equipment 0.1% | ||
| Ei Towers S.p.A. | 6,506 | 398,032 |
See financial notes 27
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Transportation 0.1% | ||
| Ansaldo STS S.p.A. | 46,472 | 493,901 |
| ASTM S.p.A. | 8,926 | 118,319 |
| Societa Iniziative Autostradali e Servizi S.p.A. | 12,948 | 148,129 |
| 760,349 | ||
| Utilities 0.3% | ||
| A2A S.p.A. | 552,157 | 676,849 |
| ACEA S.p.A. | 19,952 | 273,863 |
| Falck Renewables S.p.A. | 23,356 | 29,834 |
| Hera S.p.A. | 295,603 | 755,189 |
| Iren S.p.A. | 232,357 | 365,800 |
| 2,101,535 | ||
| 24,444,748 | ||
| Japan 18.6% | ||
| Automobiles & Components 0.7% | ||
| Akebono Brake Industry Co., Ltd. | 47,939 | 143,597 |
| Daido Metal Co., Ltd. | 14,968 | 131,419 |
| Eagle Industry Co., Ltd. | 8,967 | 183,950 |
| FCC Co., Ltd. | 11,933 | 182,168 |
| HI-LEX Corp. | 9,405 | 292,973 |
| Keihin Corp. | 23,935 | 331,813 |
| Mitsuba Corp. | 13,686 | 237,276 |
| Musashi Seimitsu Industry Co., Ltd. | 15,137 | 281,793 |
| Nippon Seiki Co., Ltd. | 16,451 | 329,196 |
| Nissin Kogyo Co., Ltd. | 25,587 | 353,660 |
| Pacific Industrial Co., Ltd. | 21,576 | 222,374 |
| Press Kogyo Co., Ltd. | 41,938 | 165,073 |
| Sanden Holdings Corp. | 40,455 | 151,558 |
| Showa Corp. | 23,935 | 202,446 |
| Topre Corp. | 14,968 | 290,875 |
| TPR Co., Ltd. | 13,147 | 318,192 |
| Unipres Corp. | 11,933 | 223,722 |
| Yorozu Corp. | 6,300 | 125,548 |
| 4,167,633 | ||
| Banks 1.3% | ||
| Ashikaga Holdings Co., Ltd. | 82,800 | 341,626 |
| Bank of the Ryukyus Ltd. | 23,935 | 340,109 |
| FIDEA Holdings Co., Ltd. | 117,846 | 229,498 |
| Jimoto Holdings, Inc. | 77,944 | 135,711 |
| Kansai Urban Banking Corp. | 19,148 | 212,993 |
| The Aichi Bank Ltd. | 4,381 | 233,538 |
| The Akita Bank Ltd. | 76,509 | 229,808 |
| The Aomori Bank Ltd. | 86,980 | 268,437 |
| The Bank of Iwate Ltd. | 6,439 | 284,796 |
| The Bank of Nagoya Ltd. | 70,460 | 269,781 |
| The Bank of Okinawa Ltd. | 7,146 | 282,750 |
| The Chiba Kogyo Bank Ltd. | 31,757 | 179,769 |
| The Eighteenth Bank Ltd. | 60,934 | 176,992 |
| The Fukui Bank Ltd. | 163,869 | 332,647 |
| The Higashi-Nippon Bank Ltd. | 58,080 | 213,274 |
| The Kiyo Bank Ltd. | 41,926 | 643,152 |
| The Minato Bank Ltd. | 69,435 | 134,074 |
| The Miyazaki Bank Ltd. | 67,494 | 224,451 |
| The Ogaki Kyoritsu Bank Ltd. | 118,468 | 420,359 |
| The Oita Bank Ltd. | 71,943 | 302,768 |
| The Tochigi Bank Ltd. | 43,932 | 235,276 |
| The Toho Bank Ltd. | 139,855 | 566,644 |
| The Towa Bank Ltd. | 282,492 | 263,412 |
| Security | Number of Shares | Value ($) |
| The Yamagata Bank Ltd. | 62,976 | 260,354 |
| The Yamanashi Chuo Bank Ltd. | 59,941 | 293,807 |
| Tokyo TY Financial Group, Inc. | 13,256 | 367,539 |
| TOMONY Holdings, Inc. | 86,373 | 343,539 |
| Tsukuba Bank Ltd. | 56,099 | 206,925 |
| 7,994,029 | ||
| Capital Goods 4.3% | ||
| Aica Kogyo Co., Ltd. | 27,802 | 593,045 |
| Aida Engineering Ltd. | 23,935 | 221,604 |
| Asahi Diamond Industrial Co., Ltd. | 22,890 | 214,384 |
| Bunka Shutter Co., Ltd. | 10,500 | 79,886 |
| Central Glass Co., Ltd. | 103,849 | 430,187 |
| Chiyoda Integre Co., Ltd. | 6,820 | 160,335 |
| Chudenko Corp. | 16,407 | 326,014 |
| CKD Corp. | 16,282 | 149,136 |
| Daifuku Co., Ltd. | 38,096 | 556,107 |
| Daihen Corp. | 50,974 | 246,489 |
| Daiho Corp. | 36,858 | 175,797 |
| Denyo Co., Ltd. | 16,685 | 261,045 |
| Fudo Tetra Corp. | 64,797 | 91,968 |
| Fuji Machine Manufacturing Co., Ltd. | 40,620 | 364,687 |
| Fujitec Co., Ltd. | 30,543 | 271,191 |
| Fukushima Industries Corp. | 5,430 | 117,261 |
| Furukawa Co., Ltd. | 109,432 | 266,390 |
| Futaba Corp. | 21,041 | 288,221 |
| Giken Ltd. (c) | 6,652 | 87,387 |
| Hanwa Co., Ltd. | 120,486 | 506,064 |
| Hazama Ando Corp. | 73,495 | 482,143 |
| Hibiya Engineering Ltd. | 9,405 | 116,180 |
| Hitachi Koki Co., Ltd. | 20,700 | 155,782 |
| Hitachi Zosen Corp. | 57,682 | 299,869 |
| Inaba Denki Sangyo Co., Ltd. | 8,360 | 270,768 |
| Inabata & Co., Ltd. | 20,700 | 225,473 |
| Iseki & Co., Ltd. | 89,946 | 143,991 |
| Iwatani Corp. | 68,977 | 413,230 |
| Juki Corp. | 10,710 | 130,268 |
| Kanamoto Co., Ltd. | 11,664 | 308,961 |
| Kanematsu Corp. | 113,950 | 175,836 |
| Kato Works Co., Ltd. | 17,934 | 81,098 |
| Kitz Corp. | 41,500 | 177,732 |
| Komori Corp. | 22,890 | 261,983 |
| Kumagai Gumi Co., Ltd. | 142,472 | 465,560 |
| Kuroda Electric Co., Ltd. | 22,094 | 409,847 |
| Kyowa Exeo Corp. | 51,754 | 532,551 |
| Kyudenko Corp. | 11,933 | 234,948 |
| Maeda Corp. | 47,939 | 384,904 |
| Makino Milling Machine Co., Ltd. | 32,971 | 256,019 |
| Meidensha Corp. | 65,942 | 212,760 |
| Mirait Holdings Corp. | 33,847 | 317,285 |
| Miura Co., Ltd. | 31,050 | 347,947 |
| MonotaRO Co., Ltd. | 10,181 | 515,834 |
| Morita Holdings Corp. | 14,968 | 152,910 |
| Nachi-Fujikoshi Corp. | 62,976 | 291,014 |
| Namura Shipbuilding Co., Ltd. | 21,138 | 154,543 |
| Nichias Corp. | 28,453 | 182,197 |
| Nippon Carbon Co., Ltd. | 18,910 | 47,905 |
| Nippon Densetsu Kogyo Co., Ltd. | 12,440 | 229,737 |
| Nippon Sheet Glass Co., Ltd. * | 354,432 | 321,719 |
| Nippon Steel & Sumikin Bussan Corp. | 49,491 | 164,990 |
| Nishimatsu Construction Co., Ltd. | 112,467 | 505,793 |
| Nishio Rent All Co., Ltd. | 5,932 | 152,234 |
28 See financial notes
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Nissei ASB Machine Co., Ltd. | 5,486 | 106,655 |
| Nitta Corp. | 7,484 | 179,465 |
| Nitto Boseki Co., Ltd. | 100,465 | 476,687 |
| Nitto Kogyo Corp. | 13,534 | 256,083 |
| Noritz Corp. | 22,890 | 344,715 |
| Obara Group, Inc. | 4,787 | 196,718 |
| Oiles Corp. | 21,138 | 330,715 |
| Okabe Co., Ltd. | 23,935 | 200,866 |
| Okumura Corp. | 98,982 | 542,345 |
| Organo Corp. | 10,500 | 41,676 |
| OSG Corp. | 28,891 | 586,236 |
| Penta-Ocean Construction Co., Ltd. | 119,951 | 578,053 |
| Raito Kogyo Co., Ltd. | 18,272 | 180,029 |
| Ryobi Ltd. | 31,488 | 125,760 |
| Sanki Engineering Co., Ltd. | 23,228 | 178,832 |
| Sankyo Tateyama, Inc. | 12,709 | 195,588 |
| Shima Seiki Manufacturing Ltd. | 16,692 | 237,326 |
| Shinmaywa Industries Ltd. | 34,454 | 361,073 |
| SHO-BOND Holdings Co., Ltd. | 7,584 | 314,787 |
| Sintokogio Ltd. | 34,306 | 279,974 |
| Sodick Co., Ltd. | 18,441 | 125,694 |
| Star Micronics Co., Ltd. | 18,575 | 265,478 |
| Sumitomo Mitsui Construction Co., Ltd. | 282,416 | 372,873 |
| Taikisha Ltd. | 17,275 | 391,587 |
| Takara Standard Co., Ltd. | 32,971 | 226,091 |
| Takasago Thermal Engineering Co., Ltd. | 35,668 | 542,444 |
| Takuma Co., Ltd. | 38,972 | 304,547 |
| Tatsuta Electric Wire & Cable Co., Ltd. | 20,559 | 78,717 |
| Teikoku Sen-I Co., Ltd. | 9,236 | 106,700 |
| Tekken Corp. | 34,454 | 97,802 |
| The Nippon Road Co., Ltd. | 20,969 | 110,049 |
| Toa Corp. | 98,982 | 206,646 |
| TOKAI Holdings Corp. | 45,580 | 187,683 |
| Tokyu Construction Co., Ltd. | 34,792 | 329,302 |
| Toshiba Machine Co., Ltd. | 67,904 | 243,745 |
| Toshiba Plant Systems & Services Corp. | 14,968 | 163,656 |
| Totetsu Kogyo Co., Ltd. | 16,620 | 354,247 |
| Toyo Engineering Corp. | 59,941 | 153,333 |
| Trusco Nakayama Corp. | 10,989 | 427,101 |
| Tsubakimoto Chain Co. | 52,457 | 404,731 |
| Tsugami Corp. | 37,489 | 159,317 |
| Wakita & Co., Ltd. | 14,968 | 137,471 |
| YAMABIKO Corp. | 4,180 | 145,559 |
| Yamazen Corp. | 46,456 | 364,180 |
| Yokogawa Bridge Holdings Corp. | 10,450 | 89,250 |
| 26,232,995 | ||
| Commercial & Professional Services 0.9% | ||
| Aeon Delight Co., Ltd. | 7,484 | 237,764 |
| Benefit One, Inc. | 3,150 | 56,666 |
| Daiseki Co., Ltd. | 25,149 | 438,917 |
| Duskin Co., Ltd. | 26,363 | 525,367 |
| Kokuyo Co., Ltd. | 43,152 | 436,915 |
| Meitec Corp. | 15,338 | 591,700 |
| Mitsubishi Pencil Co., Ltd. | 10,431 | 457,919 |
| Moshi Moshi Hotline, Inc. | 14,968 | 153,033 |
| Nihon M&A Center, Inc. | 11,057 | 451,641 |
| Nippon Parking Development Co., Ltd. (c) | 77,944 | 107,411 |
| Security | Number of Shares | Value ($) |
| Nissha Printing Co., Ltd. | 14,594 | 250,730 |
| Nomura Co., Ltd. | 15,760 | 238,770 |
| Okamura Corp. | 41,400 | 371,348 |
| Pilot Corp. | 12,500 | 607,542 |
| Sato Holdings Corp. | 7,484 | 157,109 |
| TechnoPro Holdings, Inc. | 6,582 | 191,999 |
| 5,274,831 | ||
| Consumer Durables & Apparel 0.9% | ||
| Alpine Electronics, Inc. | 22,283 | 314,060 |
| Chofu Seisakusho Co., Ltd. | 7,484 | 162,050 |
| Cleanup Corp. | 23,071 | 161,441 |
| Descente Ltd. | 22,388 | 311,845 |
| Foster Electric Co., Ltd. | 10,291 | 202,449 |
| Fujibo Holdings, Inc. | 59,941 | 113,269 |
| Fujitsu General Ltd. | 19,486 | 241,515 |
| Gunze Ltd. | 133,436 | 417,314 |
| JVC Kenwood Corp. | 71,943 | 157,914 |
| Komatsu Seiren Co., Ltd. | 13,485 | 74,889 |
| Kurabo Industries Ltd. | 84,060 | 164,395 |
| Mizuno Corp. | 58,458 | 269,172 |
| Pioneer Corp. * | 137,685 | 249,954 |
| Sangetsu Co., Ltd. | 28,435 | 496,032 |
| Seiko Holdings Corp. | 55,492 | 330,154 |
| Seiren Co., Ltd. | 22,890 | 257,639 |
| Starts Corp., Inc. | 10,000 | 167,265 |
| Tamron Co., Ltd. | 11,664 | 234,079 |
| The Japan Wool Textile Co., Ltd. | 23,935 | 201,063 |
| Token Corp. | 2,971 | 205,446 |
| Tomy Co., Ltd. | 26,532 | 132,895 |
| TSI Holdings Co., Ltd. | 50,251 | 388,954 |
| Yondoshi Holdings, Inc. | 6,877 | 149,587 |
| 5,403,381 | ||
| Consumer Services 0.8% | ||
| Accordia Golf Co., Ltd. | 40,017 | 403,191 |
| Atom Corp. | 29,912 | 218,197 |
| Colowide Co., Ltd. | 24,522 | 371,315 |
| Create Restaurants Holdings, Inc. | 5,250 | 117,013 |
| Doutor Nichires Holdings Co., Ltd. | 18,086 | 278,636 |
| Fuji Kyuko Co., Ltd. | 23,935 | 242,737 |
| Fujita Kanko, Inc. | 31,520 | 101,178 |
| JP-Holdings, Inc. | 41,400 | 105,563 |
| Kisoji Co., Ltd. | 14,968 | 261,849 |
| Kyoritsu Maintenance Co., Ltd. | 5,283 | 323,035 |
| Matsuya Foods Co., Ltd. | 8,923 | 170,972 |
| MOS Food Services, Inc. | 20,149 | 446,592 |
| Ohsho Food Service Corp. | 4,449 | 149,053 |
| Plenus Co., Ltd. | 8,967 | 146,805 |
| Royal Holdings Co., Ltd. | 10,450 | 190,917 |
| Saizeriya Co., Ltd. | 9,574 | 222,552 |
| St Marc Holdings Co., Ltd. | 5,840 | 180,234 |
| Tokyo Dome Corp. | 80,979 | 331,440 |
| Tokyotokeiba Co., Ltd. | 40,455 | 105,490 |
| Yomiuri Land Co., Ltd. | 45,359 | 152,713 |
| Yoshinoya Holdings Co., Ltd. | 23,228 | 276,585 |
| Zensho Holdings Co., Ltd. *(c) | 43,152 | 412,345 |
| 5,208,412 | ||
| Diversified Financials 0.5% | ||
| Financial Products Group Co., Ltd. | 24,558 | 171,644 |
| Fuyo General Lease Co., Ltd. | 13,585 | 531,360 |
| GCA Savvian Corp. | 5,430 | 70,393 |
| IBJ Leasing Co., Ltd. | 21,238 | 439,358 |
See financial notes 29
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Ichiyoshi Securities Co., Ltd. | 15,406 | 133,866 |
| J Trust Co., Ltd. | 36,882 | 313,475 |
| Jaccs Co., Ltd. | 46,456 | 187,840 |
| Japan Securities Finance Co., Ltd. | 47,939 | 260,691 |
| kabu.com Securities Co., Ltd. | 106,960 | 350,399 |
| Kyokuto Securities Co., Ltd. | 10,979 | 161,444 |
| Marusan Securities Co., Ltd. | 22,621 | 246,958 |
| Mito Securities Co., Ltd. | 28,453 | 97,438 |
| Monex Group, Inc. | 78,551 | 204,180 |
| Ricoh Leasing Co., Ltd. | 4,618 | 129,373 |
| 3,298,419 | ||
| Energy 0.2% | ||
| Itochu Enex Co., Ltd. | 23,935 | 206,988 |
| Modec, Inc. (c) | 9,236 | 122,933 |
| Nippon Gas Co., Ltd. | 13,585 | 447,284 |
| San-Ai Oil Co., Ltd. | 22,452 | 150,255 |
| Shinko Plantech Co., Ltd. | 23,935 | 194,941 |
| 1,122,401 | ||
| Food & Staples Retailing 0.8% | ||
| Ain Pharmaciez, Inc. | 8,698 | 399,784 |
| Arcs Co., Ltd. | 22,890 | 452,190 |
| Axial Retailing, Inc. | 10,350 | 347,605 |
| Cocokara fine, Inc. | 8,967 | 359,982 |
| Daikokutenbussan Co., Ltd. | 2,090 | 76,574 |
| Heiwado Co., Ltd. | 11,933 | 252,672 |
| Kato Sangyo Co., Ltd. | 7,484 | 168,781 |
| Kobe Bussan Co., Ltd. | 1,360 | 127,263 |
| Kusuri No Aoki Co., Ltd. | 6,360 | 298,621 |
| San-A Co., Ltd. | 5,932 | 276,078 |
| Toho Co., Ltd. | 3,245 | 62,043 |
| United Super Markets Holdings, Inc. | 29,668 | 255,833 |
| Valor Co., Ltd. | 19,530 | 549,551 |
| Welcia Holdings Co., Ltd. | 7,484 | 359,425 |
| Yaoko Co., Ltd. | 8,026 | 419,232 |
| Yokohama Reito Co., Ltd. | 28,791 | 238,529 |
| 4,644,163 | ||
| Food, Beverage & Tobacco 0.9% | ||
| Ariake Japan Co., Ltd. | 7,484 | 312,490 |
| Fuji Oil Co., Ltd. | 20,700 | 286,966 |
| Hokuto Corp. | 17,120 | 310,798 |
| Itoham Foods, Inc. | 44,973 | 279,446 |
| Kameda Seika Co., Ltd. | 5,932 | 249,645 |
| Key Coffee, Inc. | 20,700 | 387,575 |
| Marudai Food Co., Ltd. | 44,973 | 190,380 |
| Maruha Nichiro Corp. | 22,890 | 344,148 |
| Megmilk Snow Brand Co., Ltd. | 23,935 | 454,663 |
| Morinaga & Co., Ltd. | 74,978 | 400,303 |
| Morinaga Milk Industry Co., Ltd. | 113,950 | 553,835 |
| Nippon Flour Mills Co., Ltd. | 35,937 | 229,231 |
| Nippon Suisan Kaisha Ltd. | 111,084 | 348,326 |
| Prima Meat Packers Ltd. | 40,835 | 116,253 |
| Rock Field Co., Ltd. | 9,136 | 223,302 |
| Sakata Seed Corp. | 14,968 | 242,457 |
| Showa Sangyo Co., Ltd. | 44,973 | 178,133 |
| The Nisshin Oillio Group Ltd. | 44,973 | 169,597 |
| 5,277,548 | ||
| Health Care Equipment & Services 0.7% | ||
| A/S One Corp. | 6,439 | 214,660 |
| Asahi Intecc Co., Ltd. | 19,482 | 790,148 |
| BML, Inc. | 4,449 | 135,469 |
| Security | Number of Shares | Value ($) |
| Eiken Chemical Co., Ltd. | 5,663 | 106,498 |
| Hogy Medical Co., Ltd. | 5,932 | 288,315 |
| Jeol Ltd. | 40,173 | 243,654 |
| Mani, Inc. | 8,898 | 200,523 |
| Nagaileben Co., Ltd. | 14,767 | 299,520 |
| Nichii Gakkan Co. | 20,700 | 159,198 |
| Nikkiso Co., Ltd. | 32,087 | 253,392 |
| Paramount Bed Holdings Co., Ltd. | 8,967 | 268,599 |
| Ship Healthcare Holdings, Inc. | 14,968 | 329,287 |
| Toho Holdings Co., Ltd. | 25,390 | 558,984 |
| Tokai Corp. | 5,494 | 167,515 |
| Tsukui Corp. | 10,772 | 98,844 |
| Vital KSK Holdings, Inc. | 20,700 | 142,800 |
| 4,257,406 | ||
| Household & Personal Products 0.3% | ||
| Aderans Co., Ltd. | 16,367 | 120,742 |
| Artnature, Inc. | 8,967 | 77,176 |
| Dr Ci:Labo Co., Ltd. | 8,826 | 158,553 |
| Earth Chemical Co., Ltd. | 8,529 | 324,100 |
| Fancl Corp. | 22,890 | 319,971 |
| Mandom Corp. | 7,287 | 266,081 |
| Milbon Co., Ltd. | 4,887 | 175,421 |
| Noevir Holdings Co., Ltd. | 5,932 | 133,731 |
| 1,575,775 | ||
| Materials 1.8% | ||
| ADEKA Corp. | 49,917 | 628,571 |
| Aichi Steel Corp. | 74,978 | 292,648 |
| Asahi Holdings, Inc. | 22,247 | 330,442 |
| Chugoku Marine Paints Ltd. | 31,612 | 213,903 |
| Dai Nippon Toryo Co., Ltd. | 138,931 | 201,773 |
| Dainichiseika Color & Chemicals Manufacturing Co., Ltd. | 59,941 | 285,398 |
| Daio Paper Corp. | 27,068 | 338,839 |
| Fuji Seal International, Inc. | 7,315 | 250,202 |
| Fujimi, Inc. | 12,512 | 193,279 |
| Fujimori Kogyo Co., Ltd. | 4,787 | 132,725 |
| Godo Steel Ltd. | 89,655 | 145,744 |
| Hokuetsu Kishu Paper Co., Ltd. | 64,797 | 386,050 |
| Ihara Chemical Industry Co., Ltd. | 19,144 | 206,629 |
| Ishihara Sangyo Kaisha Ltd. * | 199,668 | 181,239 |
| Kanto Denka Kogyo Co., Ltd. | 7,350 | 59,863 |
| Kumiai Chemical Industry Co., Ltd. | 27,613 | 219,200 |
| Kureha Corp. | 55,492 | 195,986 |
| Kyoei Steel Ltd. | 13,585 | 237,094 |
| Nihon Nohyaku Co., Ltd. | 27,408 | 214,180 |
| Nihon Parkerizing Co., Ltd. | 43,140 | 367,732 |
| Nippon Light Metal Holdings Co., Ltd. | 239,388 | 369,399 |
| Nippon Soda Co., Ltd. | 49,491 | 284,241 |
| Nippon Yakin Kogyo Co., Ltd. * | 54,716 | 83,980 |
| NOF Corp. | 59,507 | 443,903 |
| OSAKA Titanium Technologies Co., Ltd. | 8,501 | 222,372 |
| Pacific Metals Co., Ltd. * | 47,939 | 126,587 |
| Sakata INX Corp. | 26,552 | 206,614 |
| Sanyo Chemical Industries Ltd. | 30,234 | 226,284 |
| Sanyo Special Steel Co., Ltd. | 44,973 | 179,617 |
| Shin-Etsu Polymer Co., Ltd. | 21,576 | 106,825 |
| Sumitomo Bakelite Co., Ltd. | 71,021 | 274,273 |
| Sumitomo Seika Chemicals Co., Ltd. | 13,485 | 86,350 |
| Taiyo Holdings Co., Ltd. | 9,199 | 329,823 |
30 See financial notes
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Takasago International Corp. | 32,971 | 188,001 |
| Takiron Co., Ltd. | 14,710 | 60,814 |
| Toagosei Co., Ltd. | 43,390 | 319,020 |
| Toho Titanium Co., Ltd. * | 15,056 | 198,287 |
| Toho Zinc Co., Ltd. | 44,973 | 117,271 |
| Tokai Carbon Co., Ltd. | 88,082 | 215,871 |
| Tokuyama Corp. * | 118,468 | 200,404 |
| Tokyo Ohka Kogyo Co., Ltd. | 21,170 | 596,572 |
| Tokyo Rope Manufacturing Co., Ltd. * | 55,492 | 90,209 |
| Tokyo Steel Manufacturing Co., Ltd. | 43,727 | 283,250 |
| Topy Industries Ltd. | 111,687 | 246,074 |
| Toyo Ink SC Holdings Co., Ltd. | 74,978 | 285,224 |
| UACJ Corp. | 109,432 | 203,179 |
| Yodogawa Steel Works Ltd. | 59,941 | 256,215 |
| 11,282,156 | ||
| Media 0.1% | ||
| Avex Group Holdings, Inc. | 12,540 | 159,977 |
| Kadokawa Dwango * | 18,710 | 221,552 |
| Next Co., Ltd. | 11,550 | 69,004 |
| Toei Co., Ltd. | 23,935 | 178,547 |
| Tv Tokyo Holdings Corp. | 7,315 | 126,580 |
| Wowow, Inc. | 1,260 | 35,247 |
| 790,907 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.3% | ||
| ASKA Pharmaceutical Co., Ltd. | 13,485 | 160,126 |
| JCR Pharmaceuticals Co., Ltd. | 5,056 | 124,496 |
| Nichi-iko Pharmaceutical Co., Ltd. | 23,722 | 716,446 |
| Seikagaku Corp. | 16,282 | 230,287 |
| Towa Pharmaceutical Co., Ltd. | 4,381 | 341,269 |
| ZERIA Pharmaceutical Co., Ltd. | 16,182 | 226,603 |
| 1,799,227 | ||
| Real Estate 0.5% | ||
| Daibiru Corp. | 23,935 | 203,828 |
| Heiwa Real Estate Co., Ltd. | 23,935 | 305,347 |
| Keihanshin Building Co., Ltd. | 46,287 | 270,805 |
| Kenedix, Inc. | 108,387 | 383,694 |
| Leopalace21 Corp. * | 103,500 | 503,899 |
| Open House Co., Ltd. | 2,520 | 46,518 |
| Relo Holdings, Inc. | 3,573 | 374,740 |
| Takara Leben Co., Ltd. | 41,524 | 190,171 |
| TOC Co., Ltd. | 39,024 | 263,412 |
| Unizo Holdings Co., Ltd. | 5,721 | 260,593 |
| 2,803,007 | ||
| Retailing 1.0% | ||
| Adastria Co., Ltd. | 6,752 | 363,271 |
| AOKI Holdings, Inc. | 20,700 | 250,070 |
| Arata Corp. | 4,769 | 106,253 |
| Arcland Sakamoto Co., Ltd. | 7,922 | 171,272 |
| ASKUL Corp. | 9,390 | 325,436 |
| Belluna Co., Ltd. | 31,588 | 175,945 |
| Chiyoda Co., Ltd. | 11,933 | 333,811 |
| Chori Co., Ltd. | 12,038 | 176,520 |
| DCM Holdings Co., Ltd. | 47,939 | 378,179 |
| EDION Corp. | 42,051 | 306,053 |
| Fuji Co., Ltd. | 11,933 | 291,075 |
| Geo Holdings Corp. | 20,197 | 306,826 |
| Gulliver International Co., Ltd. | 28,015 | 247,589 |
| Ikyu Corp. | 5,250 | 103,323 |
| Jin Co., Ltd. | 4,618 | 215,686 |
| Laox Co., Ltd. *(c) | 94,560 | 327,724 |
| Security | Number of Shares | Value ($) |
| Matsuya Co., Ltd. | 17,891 | 293,939 |
| Nishimatsuya Chain Co., Ltd. | 21,576 | 193,175 |
| Pal Co., Ltd. | 4,720 | 140,605 |
| PALTAC Corp. | 20,700 | 390,650 |
| Tsutsumi Jewelry Co., Ltd. | 5,932 | 125,459 |
| United Arrows Ltd. | 11,933 | 471,668 |
| Xebio Co., Ltd. | 13,754 | 260,814 |
| Yellow Hat Ltd. | 13,047 | 284,766 |
| 6,240,109 | ||
| Semiconductors & Semiconductor Equipment 0.2% | ||
| Sanken Electric Co., Ltd. | 43,490 | 167,235 |
| Shindengen Electric Manufacturing Co., Ltd. | 28,453 | 108,943 |
| Tokyo Seimitsu Co., Ltd. | 20,579 | 395,838 |
| Ulvac, Inc. | 22,890 | 365,114 |
| 1,037,130 | ||
| Software & Services 0.8% | ||
| Ateam, Inc. | 4,393 | 67,607 |
| Broadleaf Co., Ltd. | 10,350 | 103,598 |
| COOKPAD, Inc. | 17,750 | 368,666 |
| Dip Corp. | 10,500 | 184,986 |
| F@N Communications, Inc. | 12,271 | 92,854 |
| Fuji Soft, Inc. | 8,698 | 145,918 |
| GMO internet, Inc. | 23,807 | 339,861 |
| GMO Payment Gateway, Inc. | 4,449 | 150,338 |
| Gurunavi, Inc. | 11,933 | 192,310 |
| Ines Corp. | 16,800 | 148,058 |
| Internet Initiative Japan, Inc. | 11,226 | 198,888 |
| IT Holdings Corp. | 30,443 | 714,193 |
| KLab, Inc. * | 10,012 | 118,969 |
| Koei Tecmo Holdings Co., Ltd. | 14,968 | 270,865 |
| Marvelous, Inc. | 11,495 | 101,495 |
| NEC Networks & System Integration Corp. | 8,967 | 163,749 |
| NET One Systems Co., Ltd. | 45,849 | 278,457 |
| Nihon Unisys Ltd. | 32,802 | 348,361 |
| NSD Co., Ltd. | 25,086 | 312,372 |
| SMS Co., Ltd. | 10,450 | 161,081 |
| Transcosmos, Inc. | 9,345 | 214,530 |
| 4,677,156 | ||
| Technology Hardware & Equipment 1.0% | ||
| Ai Holdings Corp. | 19,719 | 435,108 |
| Amano Corp. | 35,818 | 454,283 |
| Canon Electronics, Inc. | 13,716 | 242,097 |
| Daiwabo Holdings Co., Ltd. | 62,976 | 110,689 |
| Denki Kogyo Co., Ltd. | 29,936 | 131,665 |
| Eizo Corp. | 7,146 | 163,223 |
| Enplas Corp. | 3,742 | 133,086 |
| Hakuto Co., Ltd. | 14,992 | 174,186 |
| Hitachi Kokusai Electric, Inc. | 19,486 | 243,123 |
| Hitachi Maxell Ltd. | 14,968 | 231,835 |
| Horiba Ltd. | 13,923 | 491,157 |
| Hosiden Corp. | 24,442 | 131,906 |
| Japan Cash Machine Co., Ltd. | 6,708 | 80,816 |
| Japan Digital Laboratory Co., Ltd. | 7,484 | 109,248 |
| Koa Corp. | 14,968 | 132,901 |
| Mitsumi Electric Co., Ltd. | 38,803 | 221,576 |
| Nichicon Corp. | 35,089 | 257,119 |
| Nippon Chemi-Con Corp. | 44,973 | 107,993 |
| Nippon Signal Co., Ltd. | 39,410 | 364,555 |
| Nohmi Bosai Ltd. | 8,967 | 105,664 |
See financial notes 31
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Oki Electric Industry Co., Ltd. | 304,652 | 532,956 |
| Riso Kagaku Corp. | 11,664 | 228,015 |
| Ryosan Co., Ltd. | 19,196 | 462,693 |
| Siix Corp. | 2,310 | 62,904 |
| SMK Corp. | 29,936 | 133,642 |
| Tabuchi Electric Co., Ltd. | 11,833 | 86,903 |
| Tamura Corp. | 29,936 | 87,448 |
| Toyo Corp. | 20,700 | 179,354 |
| Wacom Co., Ltd. (c) | 67,542 | 244,118 |
| 6,340,263 | ||
| Transportation 0.5% | ||
| Hamakyorex Co., Ltd. | 9,236 | 168,128 |
| Iino Kaiun Kaisha Ltd. | 64,483 | 306,492 |
| Japan Transcity Corp. | 56,653 | 201,489 |
| Kintetsu World Express, Inc. | 5,932 | 222,478 |
| Konoike Transport Co., Ltd. | 11,821 | 133,929 |
| Maruzen Showa Unyu Co., Ltd. | 46,456 | 162,539 |
| Mitsui-Soko Holdings Co., Ltd. | 35,937 | 109,426 |
| Nippon Konpo Unyu Soko Co., Ltd. | 23,935 | 423,852 |
| Nissin Corp. | 55,492 | 168,969 |
| Sankyu, Inc. | 113,950 | 573,582 |
| Senko Co., Ltd. | 29,936 | 211,208 |
| The Sumitomo Warehouse Co., Ltd. | 47,939 | 243,681 |
| Trancom Co., Ltd. | 2,966 | 162,269 |
| 3,088,042 | ||
| Utilities 0.1% | ||
| Saibu Gas Co., Ltd. | 109,432 | 272,711 |
| Shizuoka Gas Co., Ltd. | 23,228 | 160,623 |
| The Okinawa Electric Power Co., Inc. | 8,850 | 208,424 |
| 641,758 | ||
| 113,156,748 | ||
| Netherlands 1.9% | ||
| Capital Goods 0.6% | ||
| Aalberts Industries N.V. | 39,834 | 1,236,808 |
| Arcadis N.V. | 27,856 | 699,163 |
| Grontmij N.V. * | 28,856 | 143,656 |
| IMCD Group N.V. | 13,119 | 488,035 |
| Koninklijke BAM Groep N.V. * | 77,050 | 426,320 |
| TKH Group N.V. | 16,608 | 643,880 |
| 3,637,862 | ||
| Commercial & Professional Services 0.1% | ||
| Brunel International N.V. | 7,074 | 123,652 |
| USG People N.V. | 24,962 | 368,644 |
| 492,296 | ||
| Consumer Durables & Apparel 0.1% | ||
| TomTom N.V. * | 42,917 | 430,440 |
| Diversified Financials 0.0% | ||
| BinckBank N.V. | 30,119 | 253,450 |
| Energy 0.2% | ||
| Fugro N.V. CVA * | 22,244 | 464,342 |
| SBM Offshore N.V. * | 68,008 | 811,561 |
| 1,275,903 | ||
| Food, Beverage & Tobacco 0.1% | ||
| Corbion N.V. | 24,443 | 536,812 |
| Wessanen | 4,452 | 46,991 |
| 583,803 | ||
| Security | Number of Shares | Value ($) |
| Insurance 0.1% | ||
| Delta Lloyd N.V. | 80,666 | 855,686 |
| Materials 0.1% | ||
| APERAM S.A. * | 17,106 | 577,606 |
| Koninklijke Ten Cate N.V. | 9,007 | 242,670 |
| 820,276 | ||
| Real Estate 0.4% | ||
| Eurocommercial Properties N.V. | 17,132 | 759,218 |
| NSI N.V. | 51,451 | 216,709 |
| Vastned Retail N.V. | 6,729 | 306,834 |
| Wereldhave N.V. | 14,546 | 831,890 |
| 2,114,651 | ||
| Semiconductors & Semiconductor Equipment 0.1% | ||
| ASM International N.V. | 18,289 | 688,866 |
| Transportation 0.1% | ||
| PostNL N.V. * | 176,010 | 664,037 |
| 11,817,270 | ||
| New Zealand 0.6% | ||
| Energy 0.1% | ||
| Z Energy Ltd. | 87,990 | 322,617 |
| Health Care Equipment & Services 0.1% | ||
| Ebos Group Ltd. | 25,164 | 173,533 |
| Metlifecare Ltd. | 48,874 | 134,630 |
| Summerset Group Holdings Ltd. | 47,404 | 115,572 |
| 423,735 | ||
| Insurance 0.0% | ||
| TOWER Ltd. | 87,768 | 114,771 |
| Materials 0.0% | ||
| Nuplex Industries Ltd. | 91,327 | 225,548 |
| Real Estate 0.2% | ||
| Argosy Property Ltd. | 354,432 | 249,133 |
| Goodman Property Trust | 613,375 | 462,220 |
| Precinct Properties New Zealand Ltd. | 253,462 | 185,383 |
| 896,736 | ||
| Retailing 0.1% | ||
| Trade Me Group Ltd. | 116,835 | 258,950 |
| Telecommunication Services 0.0% | ||
| Chorus Ltd. * | 158,382 | 256,756 |
| Transportation 0.0% | ||
| Freightways Ltd. | 76,020 | 252,733 |
| Utilities 0.1% | ||
| Genesis Energy Ltd. | 212,647 | 241,039 |
| Infratil Ltd. | 259,288 | 492,583 |
| 733,622 | ||
| 3,485,468 | ||
| Norway 1.1% | ||
| Banks 0.1% | ||
| SpareBank 1 SMN | 48,927 | 354,461 |
| SpareBank 1 SR-Bank A.S.A. | 43,356 | 232,150 |
| 586,611 | ||
| Diversified Financials 0.0% | ||
| Aker A.S.A., A Shares | 9,802 | 174,170 |
32 See financial notes
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Energy 0.4% | ||
| Akastor A.S.A. * | 84,349 | 119,199 |
| Aker Solutions A.S.A. | 60,032 | 246,988 |
| BW LPG Ltd. (e) | 32,126 | 203,818 |
| BW Offshore Ltd. | 42,880 | 15,852 |
| Det Norske Oljeselskap A.S.A. * | 37,470 | 216,184 |
| DNO A.S.A. *(c) | 245,326 | 278,665 |
| Fred. Olsen Energy A.S.A. * | 13,575 | 60,692 |
| Petroleum Geo-Services A.S.A. | 81,577 | 359,756 |
| Prosafe SE | 69,649 | 183,561 |
| TGS Nopec Geophysical Co. A.S.A. | 39,699 | 757,483 |
| 2,442,198 | ||
| Food, Beverage & Tobacco 0.2% | ||
| Austevoll Seafood A.S.A. | 27,449 | 160,397 |
| Bakkafrost P/F | 11,836 | 355,696 |
| Leroy Seafood Group A.S.A. | 5,589 | 185,957 |
| Salmar A.S.A. | 19,680 | 295,712 |
| 997,762 | ||
| Insurance 0.1% | ||
| Storebrand A.S.A. * | 173,945 | 589,743 |
| Real Estate 0.1% | ||
| Entra A.S.A. (e) | 21,010 | 174,761 |
| Norwegian Property A.S.A. * | 142,025 | 165,814 |
| 340,575 | ||
| Retailing 0.0% | ||
| XXL A.S.A. (e) | 26,260 | 274,799 |
| Semiconductors & Semiconductor Equipment 0.1% | ||
| Nordic Semiconductor A.S.A. * | 64,506 | 358,783 |
| Software & Services 0.1% | ||
| Atea A.S.A. | 34,376 | 296,188 |
| Opera Software A.S.A. (c) | 34,057 | 211,601 |
| 507,789 | ||
| Transportation 0.0% | ||
| Norwegian Air Shuttle A.S.A. * | 3,378 | 149,857 |
| Stolt-Nielsen Ltd. | 5,838 | 87,722 |
| 237,579 | ||
| 6,510,009 | ||
| Portugal 0.4% | ||
| Banks 0.0% | ||
| Banco BPI S.A. - Reg'd * | 127,607 | 132,260 |
| Capital Goods 0.0% | ||
| Mota-Engil, SGPS, S.A. | 11,872 | 28,640 |
| Food & Staples Retailing 0.1% | ||
| Sonae, SGPS, S.A. | 377,055 | 479,949 |
| Materials 0.1% | ||
| Altri, SGPS, S.A. | 42,660 | 158,698 |
| Portucel S.A. | 78,906 | 283,102 |
| Semapa-Sociedade de Investimento e Gestao | 17,292 | 251,787 |
| 693,587 | ||
| Media 0.1% | ||
| NOS, SGPS S.A. | 90,502 | 730,641 |
| Telecommunication Services 0.0% | ||
| Pharol SGPS S.A. * | 232,398 | 67,704 |
| Security | Number of Shares | Value ($) |
| Transportation 0.1% | ||
| CTT-Correios de Portugal S.A. | 49,723 | 514,469 |
| 2,647,250 | ||
| Republic of Korea 5.5% | ||
| Automobiles & Components 0.2% | ||
| Halla Holdings Corp. | 4,476 | 190,734 |
| Hanil E-Hwa Co., Ltd. | 5,165 | 50,002 |
| Kumho Tire Co., Inc. * | 56,400 | 303,280 |
| Nexen Tire Corp. | 12,130 | 146,657 |
| S&T Motiv Co., Ltd. | 3,000 | 164,109 |
| SL Corp. | 6,000 | 78,884 |
| Ssangyong Motor Co. * | 15,562 | 113,549 |
| Sungwoo Hitech Co., Ltd. | 18,057 | 119,540 |
| 1,166,755 | ||
| Banks 0.1% | ||
| JB Financial Group Co., Ltd. | 49,294 | 265,902 |
| Kwangju Bank * | 15,610 | 103,209 |
| 369,111 | ||
| Capital Goods 0.3% | ||
| Hanjin Heavy Industries & Construction Co., Ltd. * | 27,262 | 91,968 |
| Hyundai Corp. | 5,000 | 138,026 |
| Hyundai Elevator Co., Ltd. * | 3,611 | 202,417 |
| Hyundai Rotem Co., Ltd. * | 8,000 | 116,001 |
| iMarketKorea, Inc. | 10,000 | 269,710 |
| IS Dongseo Co., Ltd. | 3,300 | 173,545 |
| Korea Electric Terminal Co., Ltd. | 2,500 | 214,542 |
| Kumho Industrial Co., Ltd. * | 12,885 | 194,460 |
| LG International Corp. | 8,287 | 184,272 |
| LS Industrial Systems Co., Ltd. | 6,471 | 236,354 |
| S&T Dynamics Co., Ltd. | 7,620 | 83,754 |
| Sung Kwang Bend Co., Ltd. | 11,516 | 100,774 |
| 2,005,823 | ||
| Consumer Durables & Apparel 0.6% | ||
| Cuckoo Electronics Co., Ltd. | 1,000 | 230,818 |
| Fila Korea Ltd. | 3,900 | 346,227 |
| Handsome Co., Ltd. | 5,000 | 165,293 |
| Hansae Co., Ltd. | 6,201 | 329,252 |
| Hanssem Co., Ltd. | 5,700 | 1,534,940 |
| Hyundai Livart Furniture Co., Ltd. | 4,000 | 195,138 |
| LF Corp. | 6,858 | 189,606 |
| Youngone Corp. | 11,060 | 573,222 |
| Youngone Holdings Co., Ltd. | 1,780 | 126,417 |
| 3,690,913 | ||
| Consumer Services 0.1% | ||
| Grand Korea Leisure Co., Ltd. | 7,500 | 198,478 |
| Hana Tour Service, Inc. | 3,838 | 511,084 |
| 709,562 | ||
| Diversified Financials 0.2% | ||
| Daishin Securities Co., Ltd. | 17,563 | 152,205 |
| Hankook Tire Worldwide Co., Ltd. | 10,435 | 151,750 |
| KIWOOM Securities Co., Ltd. | 3,840 | 185,060 |
| Kyobo Securities Co., Ltd. | 9,106 | 78,530 |
| Meritz Financial Group, Inc. | 12,000 | 165,377 |
| Meritz Securities Co., Ltd. | 113,646 | 467,940 |
See financial notes 33
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| SK Securities Co., Ltd. * | 100,000 | 101,459 |
| Yuanta Securities Korea Co., Ltd. * | 29,845 | 105,224 |
| 1,407,545 | ||
| Energy 0.1% | ||
| Hankook Shell Oil Co., Ltd. | 250 | 101,036 |
| SK Gas Ltd. | 1,701 | 127,134 |
| 228,170 | ||
| Food & Staples Retailing 0.2% | ||
| Dongsuh Co., Inc. | 12,421 | 470,481 |
| GS Retail Co., Ltd. | 6,520 | 368,240 |
| Hyundai Greenfood Co., Ltd. | 24,270 | 560,195 |
| 1,398,916 | ||
| Food, Beverage & Tobacco 0.4% | ||
| Binggrae Co., Ltd. | 2,060 | 125,751 |
| Daesang Corp. | 8,535 | 227,311 |
| Dongwon F&B Co., Ltd. | 377 | 137,062 |
| Dongwon Industries Co., Ltd. | 500 | 146,269 |
| Lotte Food Co., Ltd. | 260 | 242,249 |
| Maeil Dairy Industry Co., Ltd. | 3,000 | 86,874 |
| Muhak Co., Ltd. * | 4,735 | 203,372 |
| Ottogi Corp. | 443 | 390,282 |
| Samlip General Foods Co., Ltd. | 791 | 244,774 |
| Samyang Corp. | 671 | 50,775 |
| Samyang Holdings Corp. | 2,310 | 349,601 |
| 2,204,320 | ||
| Health Care Equipment & Services 0.1% | ||
| Chabiotech Co., Ltd. * | 13,147 | 163,400 |
| i-SENS, Inc. * | 2,000 | 94,356 |
| Medipost Co., Ltd. * | 2,401 | 177,423 |
| Osstem Implant Co., Ltd. * | 3,810 | 208,741 |
| 643,920 | ||
| Household & Personal Products 0.1% | ||
| Cosmax, Inc. | 2,067 | 378,360 |
| Korea Kolmar Co., Ltd. | 4,700 | 413,274 |
| 791,634 | ||
| Insurance 0.2% | ||
| KB Insurance Co., Ltd. | 15,300 | 316,284 |
| Korean Reinsurance Co. | 32,174 | 378,117 |
| Meritz Fire & Marine Insurance Co., Ltd. | 21,092 | 275,520 |
| Tongyang Life Insurance | 15,897 | 201,611 |
| 1,171,532 | ||
| Materials 0.6% | ||
| AK Holdings, Inc. | 2,743 | 197,129 |
| Dongkuk Steel Mill Co., Ltd. * | 45,018 | 226,470 |
| Hanil Cement Co., Ltd. | 1,791 | 196,098 |
| Hansol Paper Co., Ltd. * | 5,915 | 98,771 |
| Huchems Fine Chemical Corp. | 8,000 | 132,234 |
| Kolon Corp. | 2,000 | 141,873 |
| Kolon Industries, Inc. | 6,146 | 287,879 |
| Namhae Chemical Corp. | 16,004 | 141,401 |
| OCI Materials Co., Ltd. | 2,229 | 206,740 |
| Poongsan Corp. | 7,750 | 160,864 |
| Seah Besteel Corp. | 5,000 | 134,855 |
| SeAH Steel Corp. | 1,235 | 72,048 |
| SK Chemicals Co., Ltd. | 6,209 | 359,600 |
| Soulbrain Co., Ltd. | 5,000 | 183,259 |
| Ssangyong Cement Industrial Co., Ltd. * | 20,662 | 330,173 |
| Security | Number of Shares | Value ($) |
| Taekwang Industrial Co., Ltd. | 223 | 224,178 |
| Young Poong Corp. | 186 | 203,967 |
| 3,297,539 | ||
| Media 0.3% | ||
| CJ CGV Co., Ltd. | 4,453 | 429,205 |
| CJ E&M Corp. * | 6,923 | 483,483 |
| CJ Hellovision Co., Ltd. | 12,500 | 122,596 |
| KT Skylife Co., Ltd. | 6,000 | 99,683 |
| SBS Media Holdings Co., Ltd. | 20,000 | 59,353 |
| SM Entertainment Co. * | 4,749 | 176,670 |
| YG Entertainment, Inc. | 3,256 | 160,219 |
| 1,531,209 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.9% | ||
| Bukwang Pharmaceutical Co., Ltd. | 6,711 | 139,866 |
| Chong Kun Dang Pharmaceutical Corp. | 2,380 | 145,084 |
| Chongkundang Holdings Corp. | 1,200 | 85,631 |
| Daewoong Pharmaceutical Co., Ltd. | 1,946 | 125,044 |
| Dong-A Socio Holdings Co., Ltd. | 943 | 130,756 |
| Dong-A ST Co., Ltd. | 1,504 | 150,050 |
| Green Cross Corp. | 2,070 | 345,656 |
| Green Cross Holdings Corp. | 9,900 | 363,272 |
| Hanmi Pharm Co., Ltd. * | 2,382 | 876,068 |
| Hanmi Science Co., Ltd. * | 4,321 | 584,536 |
| Humedix Co., Ltd. * | 1,462 | 82,572 |
| Huons Co., Ltd. | 2,736 | 244,511 |
| Ilyang Pharmaceutical Co., Ltd. * | 5,031 | 202,474 |
| Komipharm International Co., Ltd. * | 10,456 | 165,316 |
| Kwang Dong Pharmaceutical Co., Ltd. | 15,000 | 156,626 |
| LG Life Sciences Ltd. * | 3,920 | 194,881 |
| Medy-Tox, Inc. | 1,658 | 713,665 |
| Pharmicell Co., Ltd. * | 18,684 | 83,567 |
| Seegene, Inc. * | 4,809 | 189,880 |
| ViroMed Co., Ltd. * | 4,507 | 602,077 |
| 5,581,532 | ||
| Real Estate 0.0% | ||
| Korea Real Estate Investment & Trust Co., Ltd. | 63,994 | 189,101 |
| Retailing 0.2% | ||
| CJ O Shopping Co., Ltd. | 1,206 | 203,116 |
| GS Home Shopping, Inc. | 1,222 | 206,637 |
| Hyundai Home Shopping Network Corp. | 2,269 | 246,516 |
| Interpark Holdings Corp. | 17,914 | 201,443 |
| Kolao Holdings | 8,234 | 124,963 |
| LOTTE Himart Co., Ltd. | 3,750 | 205,770 |
| 1,188,445 | ||
| Semiconductors & Semiconductor Equipment 0.3% | ||
| Dongbu HiTek Co., Ltd. * | 5,765 | 75,794 |
| Eo Technics Co., Ltd. | 2,946 | 268,758 |
| GemVax & Kael Co., Ltd. * | 9,103 | 260,141 |
| Hansol Technics Co., Ltd. * | 6,471 | 114,621 |
| Iljin Display Co., Ltd. | 9,756 | 58,812 |
| Jusung Engineering Co., Ltd. * | 18,985 | 78,893 |
| Koh Young Technology, Inc. | 4,112 | 132,112 |
| LEENO Industrial, Inc. | 3,922 | 152,370 |
| Lumens Co., Ltd. | 7,066 | 23,837 |
| Seoul Semiconductor Co., Ltd. * | 14,380 | 172,037 |
| Silicon Works Co., Ltd. | 5,000 | 149,440 |
34 See financial notes
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| STS Semiconductor & Telecommunications * | 24,996 | 63,296 |
| Wonik IPS Co., Ltd. * | 20,482 | 192,222 |
| 1,742,333 | ||
| Software & Services 0.2% | ||
| Ahnlab, Inc. | 2,000 | 76,094 |
| Com2uSCorp * | 3,687 | 329,811 |
| Daou Technology, Inc. | 9,600 | 242,689 |
| Gamevil, Inc. * | 1,824 | 111,653 |
| GOLFZON Co., Ltd. * | 626 | 49,223 |
| Hancom, Inc. | 8,000 | 173,494 |
| Posco ICT Co., Ltd. | 22,300 | 95,969 |
| Webzen, Inc. * | 6,000 | 158,275 |
| WeMade Entertainment Co., Ltd. * | 3,856 | 168,226 |
| 1,405,434 | ||
| Technology Hardware & Equipment 0.2% | ||
| Daeduck Electronics Co. | 14,350 | 88,448 |
| Daeduck GDS Co., Ltd. | 2,940 | 22,272 |
| Green Cross Cell Corp. * | 2,115 | 81,006 |
| Humax Co., Ltd. | 8,338 | 130,066 |
| KH Vatec Co., Ltd. | 6,981 | 96,208 |
| KONA I Co., Ltd. | 6,331 | 227,761 |
| LG Innotek Co., Ltd. | 5,550 | 431,236 |
| Partron Co., Ltd. | 14,480 | 95,493 |
| SFA Engineering Corp. | 4,581 | 168,677 |
| Sindoh Co., Ltd. | 1,859 | 90,691 |
| 1,431,858 | ||
| Transportation 0.2% | ||
| Asiana Airlines, Inc. * | 28,700 | 123,026 |
| Eusu Holdings Co., Ltd. * | 8,808 | 69,332 |
| Hanjin Kal Corp. | 9,947 | 206,467 |
| Hanjin Transportation Co., Ltd. | 4,586 | 186,115 |
| Pan Ocean Co., Ltd. * | 72,531 | 304,781 |
| 889,721 | ||
| Utilities 0.0% | ||
| E1 Corp. | 1,395 | 79,849 |
| Samchully Co., Ltd. | 1,163 | 113,080 |
| 192,929 | ||
| 33,238,302 | ||
| Singapore 1.7% | ||
| Capital Goods 0.1% | ||
| Sarine Technologies Ltd. | 104,605 | 103,470 |
| United Engineers Ltd. | 161,958 | 225,085 |
| Vard Holdings Ltd. * | 123,040 | 30,972 |
| 359,527 | ||
| Consumer Durables & Apparel 0.0% | ||
| China Hongxing Sports Ltd. *(a)(b) | 884,000 | — |
| Consumer Services 0.1% | ||
| Genting Hong Kong Ltd. (c) | 724,339 | 224,545 |
| GuocoLeisure Ltd. | 458,973 | 266,864 |
| OUE Ltd. | 119,951 | 153,521 |
| Raffles Education Corp., Ltd. (c) | 791,994 | 157,242 |
| 802,172 | ||
| Diversified Financials 0.0% | ||
| ARA Asset Management Ltd. | 149,956 | 153,114 |
| Security | Number of Shares | Value ($) |
| Energy 0.1% | ||
| Boustead Singapore Ltd. | 158,787 | 95,139 |
| Ezion Holdings Ltd. (c) | 498,701 | 254,602 |
| Ezra Holdings Ltd. * | 404,710 | 37,306 |
| 387,047 | ||
| Food, Beverage & Tobacco 0.1% | ||
| China Fishery Group Ltd. * | 193,340 | 10,830 |
| First Resources Ltd. (c) | 229,452 | 248,114 |
| Super Group Ltd. | 119,951 | 67,192 |
| 326,136 | ||
| Health Care Equipment & Services 0.1% | ||
| Biosensors International Group Ltd. * | 479,942 | 233,114 |
| Raffles Medical Group Ltd. | 95,947 | 297,304 |
| Religare Health Trust | 239,971 | 160,797 |
| 691,215 | ||
| Materials 0.0% | ||
| Midas Holdings Ltd. (c) | 479,942 | 88,481 |
| Media 0.1% | ||
| Asian Pay Television Trust | 521,949 | 301,630 |
| Real Estate 1.0% | ||
| AIMS AMP Capital Industrial REIT | 229,452 | 227,776 |
| Ascendas India Trust | 239,971 | 150,588 |
| Ascott Residence Trust | 285,631 | 253,165 |
| Cache Logistics Trust | 229,452 | 164,324 |
| Cambridge Industrial Trust | 461,939 | 201,441 |
| CapitaLand Retail China Trust | 180,397 | 180,359 |
| CDL Hospitality Trusts | 256,491 | 240,068 |
| Far East Hospitality Trust | 319,467 | 141,578 |
| First Real Estate Investment Trust | 180,397 | 158,613 |
| Frasers Centrepoint Trust | 239,971 | 330,953 |
| Frasers Commercial Trust (c) | 173,960 | 171,456 |
| Keppel REIT | 688,494 | 478,426 |
| Lippo Malls Indonesia Retail Trust | 719,982 | 168,471 |
| Mapletree Commercial Trust | 664,490 | 621,943 |
| Mapletree Greater China Commercial Trust | 688,494 | 463,780 |
| Mapletree Industrial Trust | 455,938 | 496,253 |
| Mapletree Logistics Trust | 548,988 | 381,485 |
| OUE Hospitality Trust | 262,492 | 154,484 |
| Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (c) | 239,971 | 131,871 |
| Soilbuild Business Space REIT | 315,220 | 176,575 |
| SPH REIT (c) | 179,961 | 122,501 |
| Starhill Global REIT | 719,982 | 393,098 |
| Ying Li International Real Estate Ltd. * | 742,346 | 70,008 |
| 5,879,216 | ||
| Retailing 0.0% | ||
| OSIM International Ltd. (c) | 89,946 | 94,072 |
| Software & Services 0.0% | ||
| CSE Global Ltd. | 239,971 | 83,377 |
| Silverlake Axis Ltd. | 278,978 | 110,776 |
| 194,153 | ||
| Transportation 0.1% | ||
| SATS Ltd. | 269,976 | 681,496 |
| Tiger Airways Holdings Ltd. *(c) | 543,863 | 104,122 |
| 785,618 | ||
See financial notes 35
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Utilities 0.0% | ||
| China Everbright Water Ltd. *(c) | 139,437 | 71,187 |
| SIIC Environment Holdings Ltd. *(c) | 1,679,935 | 201,311 |
| 272,498 | ||
| 10,334,879 | ||
| Spain 2.1% | ||
| Automobiles & Components 0.0% | ||
| Cie Automotive S.A. | 16,358 | 252,942 |
| Banks 0.0% | ||
| Liberbank S.A. * | 217,032 | 152,476 |
| Capital Goods 0.5% | ||
| Abengoa S.A., B Shares (c) | 263,483 | 321,508 |
| Construcciones y Auxiliar de Ferrocarriles S.A. | 1,055 | 329,459 |
| Fomento de Construcciones y Contratas S.A. * | 47,676 | 437,144 |
| Gamesa Corp. Tecnologica S.A. | 77,832 | 1,171,240 |
| Obrascon Huarte Lain S.A. (c) | 18,067 | 280,380 |
| Sacyr S.A. * | 73,513 | 224,874 |
| 2,764,605 | ||
| Commercial & Professional Services 0.1% | ||
| Applus Services S.A. | 28,592 | 289,425 |
| Prosegur Cia de Seguridad S.A. | 86,112 | 420,690 |
| 710,115 | ||
| Consumer Services 0.1% | ||
| Melia Hotels International S.A. | 26,322 | 375,309 |
| NH Hotel Group S.A. * | 58,485 | 328,645 |
| 703,954 | ||
| Diversified Financials 0.2% | ||
| Bolsas y Mercados Espanoles SHMSF S.A. | 25,300 | 985,115 |
| Energy 0.1% | ||
| Tecnicas Reunidas S.A. | 11,181 | 537,652 |
| Food, Beverage & Tobacco 0.3% | ||
| Deoleo S.A. * | 65,030 | 22,953 |
| Ebro Foods S.A. | 40,294 | 814,044 |
| Viscofan S.A. | 16,414 | 956,378 |
| 1,793,375 | ||
| Insurance 0.1% | ||
| Grupo Catalana Occidente S.A. | 19,364 | 613,384 |
| Materials 0.0% | ||
| Ence Energia y Celulosa S.A. | 67,741 | 222,778 |
| Media 0.1% | ||
| Atresmedia Corp de Medios de Comunicaion S.A. | 27,618 | 409,105 |
| Promotora de Informaciones S.A., Class A * | 19,155 | 128,028 |
| 537,133 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.2% | ||
| Almirall S.A. | 24,859 | 486,897 |
| Faes Farma S.A. | 101,338 | 286,144 |
| Zeltia S.A. * | 81,837 | 320,027 |
| 1,093,068 | ||
| Security | Number of Shares | Value ($) |
| Real Estate 0.3% | ||
| Inmobiliaria Colonial S.A. * | 639,476 | 449,266 |
| Merlin Properties Socimi S.A. * | 113,302 | 1,311,444 |
| 1,760,710 | ||
| Software & Services 0.1% | ||
| Indra Sistemas S.A. * | 43,356 | 513,980 |
| Telecommunication Services 0.0% | ||
| Let's GOWEX S.A. *(a)(b)(c) | 5,361 | — |
| Transportation 0.0% | ||
| Cia de Distribucion Integral Logista Holdings S.A. | 13,889 | 266,043 |
| 12,907,330 | ||
| Sweden 3.4% | ||
| Capital Goods 0.6% | ||
| Concentric AB | 13,960 | 165,343 |
| Haldex AB | 12,712 | 140,075 |
| Indutrade AB | 11,684 | 557,263 |
| Lindab International AB | 29,838 | 223,119 |
| NCC AB, B Shares | 34,639 | 1,008,727 |
| Nibe Industrier AB, B Shares | 14,949 | 450,483 |
| Peab AB | 76,105 | 539,939 |
| Saab AB, Class B | 9,354 | 238,556 |
| 3,323,505 | ||
| Commercial & Professional Services 0.2% | ||
| AF AB, B Shares | 22,078 | 303,125 |
| Intrum Justitia AB | 13,790 | 472,275 |
| Loomis AB, B Shares | 24,120 | 611,723 |
| 1,387,123 | ||
| Consumer Durables & Apparel 0.1% | ||
| JM AB | 22,401 | 587,134 |
| Nobia AB | 15,354 | 179,864 |
| 766,998 | ||
| Consumer Services 0.2% | ||
| Betsson AB * | 53,722 | 948,417 |
| Rezidor Hotel Group AB | 46,444 | 191,572 |
| 1,139,989 | ||
| Diversified Financials 0.3% | ||
| Avanza Bank Holding AB | 11,099 | 455,196 |
| Investment AB Oresund | 12,932 | 262,138 |
| L E Lundbergfortagen AB, B Shares | 13,937 | 669,975 |
| Ratos AB, B Shares | 74,905 | 462,128 |
| 1,849,437 | ||
| Food & Staples Retailing 0.3% | ||
| Axfood AB | 41,104 | 694,654 |
| ICA Gruppen AB | 26,984 | 1,000,144 |
| 1,694,798 | ||
| Food, Beverage & Tobacco 0.1% | ||
| AAK AB | 12,343 | 817,509 |
| Health Care Equipment & Services 0.0% | ||
| Lifco AB, B Shares | 7,642 | 160,311 |
| Materials 0.4% | ||
| BillerudKorsnas AB | 60,773 | 927,504 |
| Hexpol AB | 92,418 | 924,153 |
36 See financial notes
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| SSAB AB, A Shares *(c) | 75,978 | 318,408 |
| SSAB AB, B Shares * | 71,721 | 261,603 |
| 2,431,668 | ||
| Media 0.1% | ||
| Modern Times Group MTG AB, B Shares | 17,047 | 461,471 |
| Pharmaceuticals, Biotechnology & Life Sciences 0.1% | ||
| Swedish Orphan Biovitrum AB * | 54,933 | 699,186 |
| Real Estate 0.8% | ||
| Castellum AB | 62,970 | 889,792 |
| Fabege AB | 50,805 | 717,895 |
| Fastighets AB Balder, B Shares * | 35,397 | 619,064 |
| Hemfosa Fastigheter AB | 31,552 | 345,816 |
| Hufvudstaden AB, A Shares | 52,909 | 679,036 |
| Kungsleden AB | 62,370 | 417,135 |
| Wallenstam AB, B Shares | 92,496 | 703,102 |
| Wihlborgs Fastigheter AB | 31,486 | 548,252 |
| 4,920,092 | ||
| Retailing 0.0% | ||
| Mekonomen AB | 7,992 | 201,089 |
| Software & Services 0.1% | ||
| NetEnt AB * | 9,146 | 414,441 |
| Technology Hardware & Equipment 0.0% | ||
| Axis Communications AB * | 5,459 | 215,458 |
| Telecommunication Services 0.1% | ||
| Com Hem Holding AB | 33,059 | 279,542 |
| Transportation 0.0% | ||
| SAS AB *(c) | 118,549 | 215,156 |
| 20,977,773 | ||
| Switzerland 3.3% | ||
| Automobiles & Components 0.1% | ||
| Autoneum Holding AG * | 1,876 | 353,259 |
| Banks 0.2% | ||
| Liechtensteinische Landesbank AG | 3,416 | 131,758 |
| St. Galler Kantonalbank AG - Reg'd | 729 | 272,513 |
| Valiant Holding AG - Reg'd | 5,386 | 607,634 |
| 1,011,905 | ||
| Capital Goods 0.9% | ||
| AFG Arbonia-Forster Holding AG - Reg'd * | 4,626 | 73,429 |
| Belimo Holding AG - Reg'd | 106 | 241,803 |
| Bucher Industries AG - Reg'd | 2,711 | 615,901 |
| Burckhardt Compression Holding AG | 1,153 | 399,118 |
| Conzzeta AG - Reg'd | 288 | 185,240 |
| Daetwyler Holding AG | 2,119 | 276,310 |
| Georg Fischer AG - Reg'd | 1,525 | 916,214 |
| Huber & Suhner AG - Reg'd | 7,150 | 312,380 |
| Implenia AG - Reg'd | 4,194 | 231,157 |
| Meyer Burger Technology AG *(c) | 32,167 | 260,117 |
| OC Oerlikon Corp. AG - Reg'd * | 74,605 | 810,043 |
| Rieter Holding AG - Reg'd * | 2,800 | 401,303 |
| Schweiter Technologies AG | 482 | 390,265 |
| SFS Group AG * | 4,554 | 302,329 |
| Zehnder Group AG - Reg'd | 3,799 | 129,442 |
| 5,545,051 | ||
| Security | Number of Shares | Value ($) |
| Commercial & Professional Services 0.2% | ||
| Gategroup Holding AG * | 7,282 | 253,389 |
| Kaba Holding AG, B Shares - Reg'd * | 1,456 | 963,590 |
| 1,216,979 | ||
| Consumer Durables & Apparel 0.1% | ||
| Forbo Holding AG - Reg'd * | 535 | 578,124 |
| Consumer Services 0.0% | ||
| Kuoni Reisen Holding AG - Reg'd * | 1,078 | 225,621 |
| Diversified Financials 0.4% | ||
| Cembra Money Bank AG * | 10,434 | 639,279 |
| EFG International AG * | 28,440 | 326,440 |
| Leonteq AG * | 3,344 | 771,466 |
| Vontobel Holding AG - Reg'd | 13,087 | 688,825 |
| 2,426,010 | ||
| Food, Beverage & Tobacco 0.1% | ||
| Emmi AG - Reg'd * | 916 | 354,020 |
| Health Care Equipment & Services 0.1% | ||
| Straumann Holding AG - Reg'd | 2,602 | 779,618 |
| Materials 0.0% | ||
| Schmolz + Bickenbach AG - Reg'd * | 192,303 | 157,096 |
| Pharmaceuticals, Biotechnology & Life Sciences 0.2% | ||
| Basilea Pharmaceutica - Reg'd * | 893 | 93,082 |
| Cosmo Pharmaceuticals S.A. * | 1,756 | 288,717 |
| Siegfried Holding AG - Reg'd * | 420 | 78,567 |
| Tecan Group AG - Reg'd | 5,085 | 654,653 |
| 1,115,019 | ||
| Real Estate 0.2% | ||
| Allreal Holding AG - Reg'd * | 4,225 | 571,460 |
| Mobimo Holding AG - Reg'd * | 2,836 | 586,233 |
| Plazza AG - Reg’d * | 188 | 39,289 |
| 1,196,982 | ||
| Retailing 0.0% | ||
| Valora Holding AG - Reg'd * | 1,500 | 292,384 |
| Semiconductors & Semiconductor Equipment 0.1% | ||
| ams AG | 21,133 | 785,617 |
| Software & Services 0.1% | ||
| Temenos Group AG - Reg'd * | 16,790 | 595,519 |
| Technology Hardware & Equipment 0.2% | ||
| Ascom Holding AG - Reg'd | 14,012 | 245,596 |
| Kudelski S.A. | 13,093 | 173,978 |
| Logitech International S.A. - Reg'd | 53,699 | 713,543 |
| 1,133,117 | ||
| Telecommunication Services 0.1% | ||
| Sunrise Communications Group AG *(e) | 10,500 | 681,868 |
| Transportation 0.3% | ||
| Flughafen Zuerich AG - Reg'd | 1,277 | 1,016,133 |
| Panalpina Welttransport Holding AG - Reg'd | 5,295 | 666,358 |
| 1,682,491 | ||
| Utilities 0.0% | ||
| BKW AG | 6,973 | 265,350 |
| 20,396,030 | ||
See financial notes 37
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| United Kingdom 19.4% | ||
| Banks 0.2% | ||
| Bank of Georgia Holdings plc | 9,944 | 266,572 |
| The Paragon Group of Cos. plc | 95,711 | 606,184 |
| Virgin Money Holdings UK plc | 31,520 | 205,837 |
| 1,078,593 | ||
| Capital Goods 2.3% | ||
| Balfour Beatty plc | 236,866 | 992,717 |
| Bodycote plc | 73,958 | 729,121 |
| Carillion plc | 165,075 | 866,511 |
| Chemring Group plc | 64,462 | 223,071 |
| Diploma plc | 32,538 | 363,315 |
| Fenner plc | 72,582 | 190,610 |
| Galliford Try plc | 29,936 | 801,584 |
| Grafton Group plc | 81,469 | 938,492 |
| HellermannTyton Group plc | 77,936 | 569,361 |
| Interserve plc | 53,255 | 478,742 |
| Keller Group plc | 25,300 | 382,304 |
| Kier Group plc | 27,390 | 631,466 |
| Morgan Advanced Materials plc | 124,213 | 639,983 |
| Morgan Sindall Group plc | 20,343 | 256,871 |
| QinetiQ Group plc | 251,826 | 902,041 |
| Rotork plc | 342,006 | 1,099,877 |
| Senior plc | 161,955 | 711,890 |
| SIG plc | 217,792 | 629,063 |
| Speedy Hire plc | 186,429 | 136,913 |
| Spirax-Sarco Engineering plc | 28,140 | 1,365,030 |
| Ultra Electronics Holdings plc | 26,819 | 724,721 |
| Vesuvius plc | 104,194 | 639,078 |
| 14,272,761 | ||
| Commercial & Professional Services 1.5% | ||
| AA plc * | 188,662 | 965,079 |
| APR Energy plc | 35,862 | 41,918 |
| Berendsen plc | 70,090 | 1,075,828 |
| Cape plc | 36,329 | 143,876 |
| De La Rue plc | 38,921 | 293,167 |
| Hays plc | 481,978 | 1,183,828 |
| HomeServe plc | 98,825 | 639,738 |
| Michael Page International plc | 119,160 | 929,169 |
| Mitie Group plc | 168,529 | 769,039 |
| Regus plc | 241,000 | 1,059,341 |
| RPS Group plc | 90,099 | 323,913 |
| Serco Group plc | 414,906 | 721,082 |
| Shanks Group plc | 177,442 | 255,167 |
| WS Atkins plc | 41,275 | 931,900 |
| 9,333,045 | ||
| Consumer Durables & Apparel 0.7% | ||
| Bellway plc | 45,873 | 1,756,056 |
| Bovis Homes Group plc | 54,324 | 921,560 |
| Crest Nicholson Holdings plc | 84,048 | 714,840 |
| Redrow plc | 85,191 | 631,404 |
| Ted Baker plc | 7,899 | 372,478 |
| 4,396,338 | ||
| Consumer Services 1.5% | ||
| Betfair Group plc | 27,410 | 1,365,873 |
| Bwin.Party Digital Entertainment plc | 267,183 | 478,320 |
| Dignity plc | 19,543 | 727,984 |
| Domino's Pizza Group plc | 52,861 | 703,654 |
| Enterprise Inns plc * | 191,552 | 352,939 |
| Security | Number of Shares | Value ($) |
| Greene King plc | 109,929 | 1,388,071 |
| J.D. Wetherspoon plc | 31,475 | 364,032 |
| Ladbrokes plc | 307,630 | 473,135 |
| Marston's plc | 213,870 | 499,319 |
| Mitchells & Butlers plc * | 91,582 | 509,888 |
| SSP Group plc | 172,449 | 782,419 |
| The Restaurant Group plc | 78,463 | 804,306 |
| Thomas Cook Group plc * | 537,380 | 885,998 |
| 9,335,938 | ||
| Diversified Financials 1.8% | ||
| Allied Minds plc * | 33,917 | 253,675 |
| Brewin Dolphin Holdings plc | 92,166 | 401,723 |
| Close Brothers Group plc | 59,074 | 1,354,660 |
| Henderson Group plc | 366,243 | 1,461,153 |
| IG Group Holdings plc | 140,349 | 1,564,962 |
| Intermediate Capital Group plc | 127,831 | 1,049,866 |
| International Personal Finance plc | 101,714 | 621,990 |
| Jupiter Fund Management plc | 137,222 | 941,905 |
| Kennedy Wilson Europe Real Estate plc | 37,770 | 687,789 |
| Man Group plc | 572,359 | 1,418,144 |
| SVG Capital plc * | 80,808 | 578,412 |
| Tullett Prebon plc | 99,375 | 576,661 |
| 10,910,940 | ||
| Energy 0.4% | ||
| Cairn Energy plc * | 220,129 | 513,255 |
| Genel Energy plc * | 54,258 | 296,869 |
| Hunting plc | 52,622 | 419,231 |
| Lamprell plc * | 95,956 | 195,913 |
| Ophir Energy plc * | 264,404 | 393,844 |
| Premier Oil plc * | 198,157 | 320,918 |
| Soco International plc | 95,106 | 225,260 |
| Stobart Group Ltd. (c) | 124,615 | 217,532 |
| 2,582,822 | ||
| Food & Staples Retailing 0.3% | ||
| Booker Group plc | 541,408 | 1,406,406 |
| Greggs plc | 39,053 | 684,724 |
| 2,091,130 | ||
| Food, Beverage & Tobacco 0.4% | ||
| Britvic plc | 91,605 | 943,249 |
| Dairy Crest Group plc | 61,293 | 552,414 |
| Devro plc | 83,893 | 372,889 |
| Greencore Group plc | 152,790 | 698,628 |
| Premier Foods plc * | 227,922 | 121,814 |
| 2,688,994 | ||
| Health Care Equipment & Services 0.4% | ||
| Al Noor Hospitals Group plc | 17,600 | 230,355 |
| NMC Health plc | 23,287 | 271,123 |
| Spire Healthcare Group plc (e) | 66,372 | 363,405 |
| Synergy Health plc * | 21,636 | 540,738 |
| UDG Healthcare plc | 96,958 | 752,318 |
| 2,157,939 | ||
| Insurance 1.3% | ||
| Amlin plc | 196,327 | 1,558,067 |
| Beazley plc | 225,113 | 1,158,811 |
| esure Group plc | 93,828 | 355,429 |
| Hiscox Ltd. | 108,544 | 1,502,466 |
| Jardine Lloyd Thompson Group plc | 44,148 | 715,662 |
| Just Retirement Group plc | 77,942 | 223,567 |
38 See financial notes
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Lancashire Holdings Ltd. | 77,905 | 781,213 |
| Phoenix Group Holdings | 75,978 | 985,665 |
| Saga plc | 184,154 | 575,521 |
| 7,856,401 | ||
| Materials 1.1% | ||
| Acacia Mining plc | 52,388 | 192,811 |
| Alent plc | 86,222 | 632,547 |
| Centamin plc | 412,690 | 381,148 |
| Elementis plc | 190,304 | 694,840 |
| Essentra plc | 98,196 | 1,287,492 |
| Evraz plc * | 172,501 | 209,460 |
| Hochschild Mining plc * | 94,707 | 98,684 |
| KAZ Minerals plc * | 101,754 | 272,932 |
| Lonmin plc * | 208,964 | 112,807 |
| Petra Diamonds Ltd. * | 184,637 | 354,965 |
| RPC Group plc | 89,469 | 903,366 |
| Synthomer plc | 97,614 | 516,148 |
| Vedanta Resources plc | 40,165 | 338,211 |
| Victrex plc | 31,894 | 880,991 |
| 6,876,402 | ||
| Media 0.7% | ||
| Cineworld Group plc | 75,978 | 689,440 |
| Entertainment One Ltd. | 65,011 | 301,561 |
| ITE Group plc | 111,470 | 258,018 |
| Rightmove plc | 35,106 | 2,009,081 |
| UBM plc | 159,644 | 1,209,247 |
| 4,467,347 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.5% | ||
| BTG plc * | 138,762 | 1,346,655 |
| Dechra Pharmaceuticals plc | 37,968 | 555,042 |
| Genus plc | 25,839 | 547,225 |
| Indivior plc * | 201,259 | 691,814 |
| 3,140,736 | ||
| Real Estate 1.6% | ||
| Big Yellow Group plc | 57,830 | 599,473 |
| Countrywide plc | 61,538 | 494,522 |
| Development Securities plc | 40,053 | 157,084 |
| Foxtons Group plc | 99,494 | 368,017 |
| Grainger plc | 194,180 | 703,318 |
| Great Portland Estates plc | 133,968 | 1,707,065 |
| Hansteen Holdings plc | 234,630 | 414,990 |
| Helical Bar plc | 56,747 | 370,927 |
| Londonmetric Property plc | 277,218 | 691,984 |
| Redefine International plc | 309,555 | 251,140 |
| Savills plc | 54,310 | 754,265 |
| Shaftesbury plc | 100,836 | 1,395,772 |
| ST Modwen Properties plc | 50,318 | 345,620 |
| The Unite Group plc | 86,958 | 867,982 |
| Workspace Group plc | 40,251 | 555,607 |
| 9,677,766 | ||
| Retailing 1.4% | ||
| Card Factory plc | 50,165 | 300,128 |
| Connect Group plc | 77,903 | 184,814 |
| Debenhams plc | 514,407 | 598,907 |
| Dunelm Group plc | 37,968 | 543,947 |
| Halfords Group plc | 84,755 | 679,140 |
| Home Retail Group plc | 342,849 | 802,026 |
| Howden Joinery Group plc | 229,621 | 1,700,805 |
| Mothercare plc * | 35,462 | 136,079 |
| N Brown Group plc | 70,590 | 326,028 |
| Security | Number of Shares | Value ($) |
| Ocado Group plc * | 149,711 | 789,316 |
| Pets at Home Group plc | 97,316 | 449,615 |
| Poundland Group plc | 60,794 | 322,579 |
| SuperGroup plc * | 14,395 | 324,787 |
| WH Smith plc | 45,389 | 1,047,124 |
| 8,205,295 | ||
| Semiconductors & Semiconductor Equipment 0.1% | ||
| Imagination Technologies Group plc * | 84,494 | 318,382 |
| Software & Services 1.2% | ||
| AVEVA Group plc | 24,162 | 804,539 |
| Computacenter plc | 37,054 | 439,956 |
| Fidessa Group plc | 18,445 | 532,759 |
| Just Eat plc * | 128,886 | 781,211 |
| Micro Focus International plc | 61,758 | 1,239,539 |
| Moneysupermarket.com Group plc | 149,303 | 741,928 |
| Playtech plc | 65,221 | 860,157 |
| SDL plc | 26,149 | 153,931 |
| Telecity Group plc | 70,882 | 1,185,010 |
| Xchanging plc | 56,564 | 81,993 |
| Zoopla Property Group plc (e) | 63,187 | 255,879 |
| 7,076,902 | ||
| Technology Hardware & Equipment 1.0% | ||
| Electrocomponents plc | 173,895 | 490,772 |
| Halma plc | 139,390 | 1,618,583 |
| Laird plc | 101,865 | 597,220 |
| Oxford Instruments plc | 21,007 | 271,393 |
| Pace plc | 129,194 | 677,568 |
| Premier Farnell plc | 151,584 | 304,476 |
| Renishaw plc | 12,650 | 421,216 |
| Spectris plc | 43,144 | 1,210,324 |
| Spirent Communications plc | 247,617 | 298,003 |
| Xaar plc | 29,201 | 229,047 |
| 6,118,602 | ||
| Telecommunication Services 0.2% | ||
| Cable & Wireless Communications plc | 938,680 | 866,214 |
| KCOM Group plc | 190,673 | 275,660 |
| 1,141,874 | ||
| Transportation 0.7% | ||
| BBA Aviation plc | 201,849 | 904,633 |
| Firstgroup plc * | 467,674 | 784,018 |
| Go-Ahead Group plc | 16,157 | 628,940 |
| National Express Group plc | 158,805 | 722,957 |
| Northgate plc | 39,012 | 299,822 |
| Stagecoach Group plc | 164,830 | 919,983 |
| 4,260,353 | ||
| Utilities 0.1% | ||
| Infinis Energy plc | 37,260 | 73,638 |
| Telecom Plus plc | 23,160 | 396,808 |
| 470,446 | ||
| 118,459,006 | ||
| Total Common Stock | ||
| (Cost $593,339,624) | 603,888,842 | |
See financial notes 39
Schwab International Small-Cap Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Preferred Stock 0.3% of net assets | ||
| Germany 0.3% | ||
| Capital Goods 0.1% | ||
| Jungheinrich AG | 7,121 | 497,256 |
| Health Care Equipment & Services 0.2% | ||
| Draegerwerk AG & Co. KGaA | 2,556 | 242,924 |
| Sartorius AG | 2,982 | 656,572 |
| 899,496 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.0% | ||
| Biotest AG | 7,186 | 174,042 |
| Transportation 0.0% | ||
| Sixt SE | 3,644 | 132,701 |
| 1,703,495 | ||
| Republic of Korea 0.0% | ||
| Diversified Financials 0.0% | ||
| Daishin Securities Co., Ltd. | 7,069 | 42,853 |
| Sweden 0.0% | ||
| Real Estate 0.0% | ||
| Klovern AB | 7,496 | 259,724 |
| Total Preferred Stock | ||
| (Cost $1,798,214) | 2,006,072 | |
| Rights 0.0% of net assets | ||
| Germany 0.0% | ||
| Real Estate 0.0% | ||
| Patrizia Immobilien AG *(a) | 1,521 | 35,681 |
| Total Rights | ||
| (Cost $17,940) | 35,681 | |
| Other Investment Companies 1.9% of net assets | ||
| Switzerland 0.2% | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.2% | ||
| BB Biotech AG - Reg'd * | 4,373 | 1,279,726 |
| United Kingdom 0.1% | ||
| Real Estate 0.1% | ||
| F&C Commercial Property Trust Ltd. | 230,491 | 510,473 |
| UK Commercial Property Trust Ltd. | 101,470 | 135,383 |
| 645,856 | ||
| United States 1.6% | ||
| Equity Fund 0.1% | ||
| iShares MSCI EAFE Small-Cap ETF | 12,000 | 588,720 |
| Money Market Fund 0.1% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d) | 206,690 | 206,690 |
| Security | Number of Shares | Value ($) |
| Securities Lending Collateral 1.4% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d) | 8,649,267 | 8,649,267 |
| 9,444,677 | ||
| Total Other Investment Companies | ||
| (Cost $10,747,636) | 11,370,259 | |
End of Investments
At 08/31/15, the tax basis cost of the fund's investments was $612,114,955 and the unrealized appreciation and depreciation were $70,752,434 and ($65,566,535), respectively, with a net unrealized appreciation of $5,185,899.
| * | 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 $136,812 or 0.0% of net assets. |
| (c) | All or a portion of this security is on loan. Securities on loan were valued at $7,876,658. Non-cash collateral pledged to the fund for securities on loan amounted to $641,711. |
| (d) | The rate shown is the 7-day yield. |
| (e) | 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 $4,418,389 or 0.7% of net assets. |
| CVA — | Dutch Certificate |
| ETF — | Exchange Traded Fund |
| Reg'd — | Registered |
| REIC — | Real Estate Investment Company |
| REIT — | Real Estate Investment Trust |
40 See financial notes
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2015
This section shows all the securities in the fund's portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be viewed and copied at the SEC's Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund's website at www.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 97.5% | Common Stock | 1,419,144,154 | 1,244,294,754 |
| 2.0% | Preferred Stock | 48,701,294 | 25,853,511 |
| 1.4% | Other Investment Companies | 18,318,299 | 18,318,299 |
| 100.9% | Total Investments | 1,486,163,747 | 1,288,466,564 |
| (0.9%) | Other Assets and Liabilities, Net | (11,726,607) | |
| 100.0% | Net Assets | 1,276,739,957 | |
| Security | Number of Shares | Value ($) |
| Common Stock 97.5% of net assets | ||
| Brazil 6.3% | ||
| Banks 1.0% | ||
| Banco Bradesco S.A. | 255,934 | 1,768,648 |
| Banco do Brasil S.A. | 370,698 | 1,814,687 |
| Itau Unibanco Holding S.A. ADR | 1,297,899 | 9,500,621 |
| 13,083,956 | ||
| Capital Goods 0.3% | ||
| Embraer S.A. | 315,837 | 1,992,706 |
| WEG S.A. | 275,250 | 1,265,822 |
| 3,258,528 | ||
| Consumer Durables & Apparel 0.0% | ||
| Cyrela Brazil Realty S.A. Empreendimentos e Participacoes | 183,900 | 424,122 |
| Consumer Services 0.2% | ||
| Estacio Participacoes S.A. | 110,953 | 379,871 |
| Kroton Educacional S.A. | 777,626 | 1,853,193 |
| 2,233,064 | ||
| Diversified Financials 0.3% | ||
| BM&FBovespa S.A. - Bolsa de Valores Mercadorias e Futuros | 789,874 | 2,337,797 |
| CETIP S.A. - Mercados Organizados | 84,506 | 759,156 |
| Grupo BTG Pactual | 122,662 | 996,855 |
| 4,093,808 | ||
| Energy 0.6% | ||
| Cosan S.A. Industria e Comercio | 61,300 | 305,469 |
| Petroleo Brasileiro S.A. * | 1,529,470 | 4,459,598 |
| Ultrapar Participacoes S.A. ADR | 157,670 | 2,752,919 |
| 7,517,986 | ||
| Security | Number of Shares | Value ($) |
| Food & Staples Retailing 0.1% | ||
| Raia Drogasil S.A. | 122,600 | 1,336,322 |
| Food, Beverage & Tobacco 1.6% | ||
| Ambev S.A. ADR | 2,023,164 | 10,662,074 |
| BRF S.A. ADR | 384,091 | 7,316,934 |
| JBS S.A. | 257,460 | 1,000,222 |
| M Dias Branco S.A. | 20,921 | 363,594 |
| Souza Cruz S.A. | 183,900 | 1,340,025 |
| 20,682,849 | ||
| Health Care Equipment & Services 0.0% | ||
| Qualicorp S.A. | 78,464 | 367,734 |
| Household & Personal Products 0.1% | ||
| Hypermarcas S.A. * | 122,303 | 553,045 |
| Natura Cosmeticos S.A. | 66,373 | 431,705 |
| 984,750 | ||
| Insurance 0.2% | ||
| BB Seguridade Participacoes S.A. | 255,841 | 2,015,962 |
| Porto Seguro S.A. | 49,040 | 448,089 |
| Sul America S.A. | 122,600 | 589,059 |
| 3,053,110 | ||
| Materials 0.8% | ||
| ALROSA AO * | 651,062 | 634,279 |
| Companhia Siderurgica Nacional S.A. | 306,589 | 294,615 |
| Duratex S.A. | 176,687 | 266,322 |
| Fibria Celulose S.A. ADR (a) | 82,184 | 1,168,657 |
| Klabin S.A. | 231,050 | 1,285,215 |
| Usinas Siderurgicas de Minas Gerais S.A. | 89,791 | 237,898 |
| Vale S.A. | 601,456 | 2,959,185 |
| Vale S.A. ADR | 826,588 | 3,207,161 |
| 10,053,332 | ||
| Real Estate 0.1% | ||
| BR Malls Participacoes S.A. | 191,336 | 588,362 |
| Multiplan Empreendimentos Imobiliarios S.A. | 30,650 | 346,535 |
| 934,897 | ||
| Retailing 0.2% | ||
| B2W Cia Digital * | 45,656 | 195,548 |
| Lojas Americanas S.A. | 68,282 | 233,402 |
| Lojas Renner S.A. | 57,017 | 1,542,265 |
| 1,971,215 | ||
| Software & Services 0.3% | ||
| Cielo S.A. | 360,854 | 3,799,506 |
| TOTVS S.A. | 54,156 | 471,342 |
| 4,270,848 | ||
| Telecommunication Services 0.1% | ||
| Tim Participacoes S.A. | 412,131 | 995,745 |
| Transportation 0.1% | ||
| CCR S.A. | 399,199 | 1,630,883 |
| Localiza Rent a Car S.A. | 49,330 | 303,517 |
| 1,934,400 | ||
| Utilities 0.3% | ||
| Companhia de Saneamento Basico do Estado de Sao Paulo | 147,120 | 635,376 |
| CPFL Energia S.A. ADR | 82,227 | 716,197 |
See financial notes 41
Schwab Emerging Markets Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| EDP - Energias do Brasil S.A. | 183,900 | 566,001 |
| Tractebel Energia S.A. | 110,146 | 1,014,290 |
| Transmissora Alianca de Energia Eletrica S.A. | 61,300 | 311,360 |
| 3,243,224 | ||
| 80,439,890 | ||
| Chile 1.4% | ||
| Banks 0.3% | ||
| Banco de Chile ADR | 16,076 | 1,005,072 |
| Banco de Credito e Inversiones | 12,785 | 558,573 |
| Banco Santander Chile ADR | 82,771 | 1,591,686 |
| Corpbanca S.A. | 90,614,372 | 845,602 |
| 4,000,933 | ||
| Energy 0.1% | ||
| Empresas COPEC S.A. | 162,195 | 1,586,101 |
| Food & Staples Retailing 0.1% | ||
| Cencosud S.A. | 521,663 | 1,060,828 |
| Food, Beverage & Tobacco 0.1% | ||
| Cia Cervecerias Unidas S.A. | 89,927 | 996,691 |
| Materials 0.1% | ||
| Empresas CMPC S.A. | 504,615 | 1,381,011 |
| Sociedad Quimica y Minera de Chile S.A. ADR | 42,910 | 672,829 |
| 2,053,840 | ||
| Retailing 0.1% | ||
| S.A.C.I. Falabella | 192,490 | 1,188,598 |
| Telecommunication Services 0.0% | ||
| ENTEL Chile S.A. | 41,071 | 384,485 |
| Transportation 0.1% | ||
| Latam Airlines Group S.A. ADR *(a) | 133,149 | 734,982 |
| Utilities 0.5% | ||
| Colbun S.A. | 4,700,306 | 1,277,133 |
| Empresa Nacional de Electricidad S.A. ADR | 63,139 | 2,343,720 |
| Enersis S.A. ADR | 176,322 | 2,447,349 |
| 6,068,202 | ||
| 18,074,660 | ||
| China 26.5% | ||
| Automobiles & Components 0.6% | ||
| Brilliance China Automotive Holdings Ltd. | 1,275,871 | 1,540,913 |
| Byd Co., Ltd., H Shares *(a) | 301,200 | 1,230,054 |
| Chongqing Changan Automobile Co., Ltd., B Shares | 382,600 | 612,156 |
| Dongfeng Motor Group Co., Ltd., H Shares | 1,314,995 | 1,323,470 |
| Geely Automobile Holdings Ltd. | 1,848,891 | 715,695 |
| Great Wall Motor Co., Ltd., H Shares | 478,563 | 1,278,218 |
| Guangzhou Automobile Group Co., Ltd., H Shares | 1,228,055 | 863,595 |
| Weifu High-Technology Group Co., Ltd., B Shares | 125,500 | 335,042 |
| 7,899,143 | ||
| Security | Number of Shares | Value ($) |
| Banks 6.2% | ||
| Agricultural Bank of China Ltd., H Shares | 11,034,000 | 4,456,284 |
| Bank of China Ltd., H Shares | 32,104,743 | 14,664,524 |
| Bank of Communications Co., Ltd., H Shares | 3,595,134 | 2,709,090 |
| China CITIC Bank Corp., Ltd., H Shares * | 3,407,338 | 2,088,355 |
| China Construction Bank Corp., H Shares | 38,841,165 | 27,313,933 |
| China Everbright Bank Co., Ltd., H Shares | 1,405,677 | 642,073 |
| China Merchants Bank Co., Ltd., H Shares | 1,936,084 | 4,611,597 |
| China Minsheng Banking Corp., Ltd., H Shares | 2,791,966 | 2,705,488 |
| Chongqing Rural Commercial Bank Co., Ltd., H Shares | 1,442,112 | 842,932 |
| Huishang Bank Corp., Ltd., H Shares (a) | 901,570 | 404,831 |
| Industrial & Commercial Bank of China Ltd., H Shares | 30,566,991 | 18,063,989 |
| 78,503,096 | ||
| Capital Goods 1.8% | ||
| AviChina Industry & Technology Co., Ltd., H Shares | 1,248,847 | 868,547 |
| Beijing Enterprises Holdings Ltd. | 289,388 | 1,689,642 |
| China Communications Construction Co., Ltd., H Shares | 2,014,987 | 2,397,169 |
| China International Marine Containers Group Co., Ltd., H Shares | 427,436 | 761,107 |
| China Railway Construction Corp., Ltd., H Shares | 909,904 | 1,192,847 |
| China Railway Group Ltd., H Shares | 1,618,600 | 1,451,509 |
| China State Construction International Holdings Ltd. | 762,964 | 1,008,090 |
| CIMC Enric Holdings Ltd. (a) | 503,284 | 264,953 |
| CITIC Ltd. | 2,223,900 | 4,074,732 |
| CRRC Corp., Ltd., H Shares * | 1,941,963 | 2,270,203 |
| Fosun International Ltd. | 919,500 | 1,542,377 |
| Haitian International Holdings Ltd. | 228,863 | 415,199 |
| Shanghai Electric Group Co., Ltd., H Shares (a) | 1,226,000 | 677,064 |
| Shanghai Industrial Holdings Ltd. | 370,347 | 903,163 |
| Sinopec Engineering Group Co., Ltd., H shares | 613,000 | 529,154 |
| Weichai Power Co., Ltd., H Shares | 500,900 | 539,030 |
| Zhuzhou CSR Times Electric Co., Ltd., H Shares | 306,500 | 2,030,797 |
| Zoomlion Heavy Industry Science & Technology Co., Ltd., H Shares (a) | 1,025,863 | 412,990 |
| 23,028,573 | ||
| Commercial & Professional Services 0.1% | ||
| China Everbright International Ltd. | 1,330,173 | 1,740,370 |
| Consumer Durables & Apparel 0.5% | ||
| ANTA Sports Products Ltd. | 483,228 | 1,217,103 |
| Belle International Holdings Ltd. | 2,452,000 | 2,243,170 |
42 See financial notes
Schwab Emerging Markets Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Haier Electronics Group Co., Ltd. | 622,338 | 1,116,186 |
| Shanghai Haixin Group Co., B Shares | 489,300 | 280,859 |
| Shenzhou International Group Holdings Ltd. | 249,186 | 1,258,783 |
| 6,116,101 | ||
| Diversified Financials 0.7% | ||
| China Cinda Asset Management Co., Ltd., H Shares | 3,321,124 | 1,234,164 |
| China Everbright Ltd. | 335,833 | 701,995 |
| China Galaxy Securities Co., Ltd., H Shares | 1,303,005 | 892,763 |
| CITIC Securities Co., Ltd., H Shares | 877,721 | 1,759,961 |
| Far East Horizon Ltd. | 1,440,552 | 1,146,858 |
| Haitong Securities Co., Ltd., H Shares | 1,299,825 | 1,875,090 |
| Huatai Securities Co., Ltd., H Shares *(b) | 402,624 | 732,511 |
| 8,343,342 | ||
| Energy 2.3% | ||
| China Coal Energy Co., Ltd., H Shares (a) | 1,494,918 | 698,267 |
| China Oilfield Services Ltd., H Shares | 829,112 | 892,226 |
| China Petroleum & Chemical Corp., H Shares | 11,120,471 | 7,404,034 |
| China Shenhua Energy Co., Ltd., H Shares | 1,467,614 | 2,545,110 |
| CNOOC Ltd. | 7,023,157 | 8,708,658 |
| Inner Mongolia Yitai Coal Co., Ltd., B Shares | 546,900 | 462,677 |
| Kunlun Energy Co., Ltd. | 1,226,000 | 866,895 |
| PetroChina Co., Ltd., H Shares | 8,927,884 | 7,418,736 |
| Yanzhou Coal Mining Co., Ltd., H Shares (a) | 948,184 | 447,785 |
| 29,444,388 | ||
| Food & Staples Retailing 0.1% | ||
| China Resources Enterprise Ltd. | 537,915 | 1,690,083 |
| Food, Beverage & Tobacco 0.3% | ||
| Anhui Gujing Distillery Co., Ltd., B Shares | 84,900 | 230,050 |
| China Agri-Industries Holdings Ltd. * | 1,228,524 | 466,044 |
| China Huishan Dairy Holdings Co., Ltd. (a) | 4,291,000 | 1,572,434 |
| China Yurun Food Group Ltd. *(a) | 613,000 | 141,582 |
| Tsingtao Brewery Co., Ltd., H Shares (a) | 185,562 | 912,241 |
| Yantai Changyu Pioneer Wine Co., Ltd., B Shares | 105,100 | 328,181 |
| 3,650,532 | ||
| Health Care Equipment & Services 0.2% | ||
| Shandong Weigao Group Medical Polymer Co., Ltd., H Shares | 859,662 | 601,205 |
| Shanghai Pharmaceuticals Holding Co., Ltd., H Shares | 306,500 | 639,098 |
| Sinopharm Group Co., Ltd., H Shares | 481,585 | 1,823,797 |
| 3,064,100 | ||
| Security | Number of Shares | Value ($) |
| Household & Personal Products 0.2% | ||
| Hengan International Group Co., Ltd. | 306,500 | 3,007,635 |
| Insurance 2.5% | ||
| China Life Insurance Co., Ltd., H Shares | 3,229,117 | 11,166,423 |
| China Pacific Insurance (Group) Co., Ltd., H Shares | 1,048,260 | 3,814,289 |
| China Taiping Insurance Holdings Co., Ltd. * | 543,043 | 1,534,525 |
| New China Life Insurance Co., Ltd., H Shares | 303,727 | 1,187,467 |
| PICC Property & Casualty Co., Ltd., H Shares | 1,608,874 | 3,055,803 |
| Ping An Insurance Group Co. of China Ltd., H Shares | 2,093,678 | 10,252,202 |
| The People's Insurance Co. Group of China Ltd., H Shares | 2,717,732 | 1,286,969 |
| 32,297,678 | ||
| Materials 0.7% | ||
| Aluminum Corp. of China Ltd., H Shares * | 1,660,879 | 555,051 |
| Anhui Conch Cement Co., Ltd., H Shares | 606,559 | 1,835,318 |
| BBMG Corp., H Shares | 885,244 | 571,122 |
| China BlueChemical Ltd., H Shares | 1,685,750 | 478,532 |
| China National Building Material Co., Ltd., H Shares | 1,429,361 | 833,635 |
| China Resources Cement Holdings Ltd. | 1,226,000 | 602,714 |
| China Zhongwang Holdings Ltd. (a) | 1,716,400 | 595,753 |
| Jiangxi Copper Co., Ltd., H Shares | 616,786 | 779,135 |
| Lee & Man Paper Manufacturing Ltd. | 1,226,000 | 702,375 |
| Nine Dragons Paper Holdings Ltd. | 613,000 | 344,069 |
| Zhaojin Mining Industry Co., Ltd., H Shares (a) | 859,881 | 428,273 |
| Zijin Mining Group Co., Ltd., H Shares | 3,333,752 | 860,318 |
| 8,586,295 | ||
| Media 0.1% | ||
| Alibaba Pictures Group Ltd. *(a) | 5,274,308 | 1,231,798 |
| Pharmaceuticals, Biotechnology & Life Sciences 0.3% | ||
| China Medical System Holdings Ltd. | 434,144 | 471,674 |
| CSPC Pharmaceutical Group Ltd. | 1,885,633 | 1,727,472 |
| Shanghai Fosun Pharmaceutical Group Co., Ltd., H Shares | 156,908 | 458,573 |
| Sino Biopharmaceutical Ltd. | 1,405,391 | 1,668,324 |
| 4,326,043 | ||
| Real Estate 1.6% | ||
| China Merchants Property Development Co., Ltd., B Shares (c)(d) | 164,200 | 313,991 |
| China Overseas Land & Investment Ltd. | 1,614,710 | 4,729,507 |
| China Resources Land Ltd. | 1,101,396 | 2,748,498 |
See financial notes 43
Schwab Emerging Markets Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| China Vanke Co., Ltd., H Shares (a) | 763,405 | 1,735,627 |
| Country Garden Holdings Co., Ltd. | 2,489,786 | 873,829 |
| Dalian Wanda Commercial Properties Co., Ltd., H Shares (b) | 156,016 | 958,234 |
| Evergrande Real Estate Group Ltd. (a) | 3,044,868 | 2,003,707 |
| Greentown China Holdings Ltd. *(a) | 613,000 | 475,369 |
| Guangzhou R&F Properties Co., Ltd., H Shares * | 544,728 | 497,632 |
| Longfor Properties Co., Ltd. | 613,000 | 741,132 |
| Renhe Commercial Holdings Co., Ltd. *(a) | 8,582,000 | 476,159 |
| Shanghai Jinqiao Export Processing Zone Development Co., Ltd., B Shares | 227,000 | 333,690 |
| Shanghai Lujiazui Finance & Trade Zone Development Co., Ltd., B Shares | 337,200 | 871,662 |
| Shimao Property Holdings Ltd. | 613,000 | 860,567 |
| Sino-Ocean Land Holdings Ltd. | 2,251,188 | 1,176,420 |
| SOHO China Ltd. | 516,933 | 220,779 |
| Sunac China Holdings Ltd. | 783,491 | 423,588 |
| Yuexiu Property Co., Ltd. | 5,495,860 | 865,149 |
| 20,305,540 | ||
| Retailing 0.1% | ||
| GOME Electrical Appliances Holdings Ltd. | 6,743,000 | 1,070,172 |
| Zhongsheng Group Holdings Ltd. (a) | 306,500 | 128,136 |
| 1,198,308 | ||
| Semiconductors & Semiconductor Equipment 0.1% | ||
| GCL-Poly Energy Holdings Ltd. * | 4,521,790 | 723,482 |
| Software & Services 3.1% | ||
| Kingsoft Corp., Ltd. (a) | 352,194 | 742,557 |
| Tencent Holdings Ltd. | 2,270,349 | 38,610,331 |
| TravelSky Technology Ltd., H Shares | 512,340 | 620,754 |
| 39,973,642 | ||
| Technology Hardware & Equipment 0.3% | ||
| Kingboard Chemical Holdings Ltd. | 440,262 | 571,485 |
| Lenovo Group Ltd. | 3,062,345 | 2,513,082 |
| ZTE Corp., H Shares | 468,334 | 943,914 |
| 4,028,481 | ||
| Telecommunication Services 2.8% | ||
| Alibaba Health Information Technology Ltd. *(a) | 863,552 | 597,240 |
| China Mobile Ltd. | 2,266,387 | 27,459,660 |
| China Telecom Corp., Ltd., H Shares | 7,822,861 | 4,098,143 |
| China Unicom (Hong Kong) Ltd. | 2,452,000 | 3,220,800 |
| 35,375,843 | ||
| Transportation 0.7% | ||
| Air China Ltd., H Shares | 1,083,657 | 783,025 |
| China COSCO Holdings Co., Ltd., H Shares *(a)(c)(d) | 1,548,961 | 987,331 |
| Security | Number of Shares | Value ($) |
| China Eastern Airlines Corp., Ltd., H Shares * | 723,018 | 385,296 |
| China Merchants Holdings International Co., Ltd. | 606,830 | 2,027,974 |
| China Shipping Container Lines Co., Ltd., H Shares *(a)(c)(d) | 2,436,000 | 977,537 |
| China Shipping Development Co., Ltd., H Shares (c)(d) | 428,191 | 303,323 |
| China Southern Airlines Co., Ltd., H Shares | 548,294 | 357,273 |
| COSCO Pacific Ltd. (c)(d) | 1,088,000 | 1,431,939 |
| Jiangsu Expressway Co., Ltd., H Shares | 480,704 | 568,157 |
| Sinotrans Ltd., H Shares | 728,628 | 334,697 |
| Zhejiang Expressway Co., Ltd., H Shares | 1,226,000 | 1,316,162 |
| 9,472,714 | ||
| Utilities 1.2% | ||
| Beijing Enterprises Water Group Ltd. * | 1,639,294 | 1,173,938 |
| Beijing Jingneng Clean Energy Co., Ltd., H Shares (a) | 620,572 | 179,364 |
| CGN Power Co., Ltd., H Shares (b) | 2,416,406 | 957,202 |
| China Gas Holdings Ltd. | 684,196 | 999,361 |
| China Longyuan Power Group Corp., Ltd., H Shares | 1,226,000 | 1,301,925 |
| China Resources Gas Group Ltd. | 292,487 | 771,783 |
| China Resources Power Holdings Co., Ltd. | 832,029 | 2,037,653 |
| Datang International Power Generation Co., Ltd., H Shares | 1,852,702 | 748,248 |
| ENN Energy Holdings Ltd. | 302,583 | 1,544,139 |
| Guangdong Electric Power Development Co., Ltd., B Shares | 443,200 | 280,215 |
| Guangdong Investment Ltd. | 944,113 | 1,276,676 |
| Huadian Energy Co., Ltd., B Shares * | 404,000 | 234,320 |
| Huadian Fuxin Energy Corp., Ltd., H Shares | 1,108,581 | 389,074 |
| Huadian Power International Corp., Ltd., H Shares | 661,062 | 538,229 |
| Huaneng Power International, Inc., H Shares | 1,658,355 | 1,910,841 |
| Huaneng Renewables Corp., Ltd., H Shares | 1,226,000 | 447,685 |
| 14,790,653 | ||
| 338,797,840 | ||
| Colombia 0.5% | ||
| Banks 0.1% | ||
| Bancolombia S.A. ADR | 49,040 | 1,691,880 |
| Diversified Financials 0.1% | ||
| Corp. Financiera Colombiana S.A. | 45,614 | 541,146 |
| Grupo de Inversiones Suramericana S.A. | 96,854 | 1,105,203 |
| 1,646,349 | ||
| Energy 0.1% | ||
| Ecopetrol S.A. ADR | 101,275 | 1,061,362 |
44 See financial notes
Schwab Emerging Markets Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Food & Staples Retailing 0.0% | ||
| Almacenes Exito S.A. | 97,237 | 527,440 |
| Materials 0.1% | ||
| Cementos Argos S.A. | 184,513 | 582,139 |
| Cemex Latam Holdings S.A. * | 68,656 | 259,665 |
| 841,804 | ||
| Utilities 0.1% | ||
| Interconexion Electrica S.A. ESP | 174,092 | 373,677 |
| Isagen S.A. ESP | 598,901 | 569,184 |
| 942,861 | ||
| 6,711,696 | ||
| Czech Republic 0.3% | ||
| Banks 0.1% | ||
| Komercni Banka A/S | 6,743 | 1,533,992 |
| Utilities 0.2% | ||
| CEZ A/S | 80,303 | 1,832,835 |
| 3,366,827 | ||
| Egypt 0.3% | ||
| Banks 0.2% | ||
| Commercial International Bank Egypt SAE GDR - Reg'd | 471,050 | 2,637,880 |
| Telecommunication Services 0.1% | ||
| Global Telecom Holding SAE GDR * | 449,704 | 584,615 |
| Orascom Telecom Media & Technology Holding SAE GDR *(b)(d) | 176,826 | 79,041 |
| 663,656 | ||
| 3,301,536 | ||
| Hungary 0.3% | ||
| Banks 0.1% | ||
| OTP Bank plc | 90,294 | 1,738,272 |
| Energy 0.1% | ||
| MOL Hungarian Oil & Gas plc | 23,741 | 1,175,910 |
| Pharmaceuticals, Biotechnology & Life Sciences 0.1% | ||
| Richter Gedeon Nyrt | 67,430 | 1,029,429 |
| 3,943,611 | ||
| India 12.6% | ||
| Automobiles & Components 0.9% | ||
| Bajaj Auto Ltd. | 30,262 | 1,016,412 |
| Bharat Forge Ltd. | 22,970 | 403,560 |
| Bosch Ltd. | 2,977 | 1,039,451 |
| Hero MotoCorp Ltd. | 39,233 | 1,414,808 |
| Mahindra & Mahindra Ltd. | 136,086 | 2,499,397 |
| Maruti Suzuki India Ltd. | 36,780 | 2,305,673 |
| Tata Motors Ltd. * | 455,350 | 2,330,008 |
| 11,009,309 | ||
| Banks 2.8% | ||
| Axis Bank Ltd. | 469,663 | 3,587,385 |
| Bank of Baroda | 227,150 | 631,304 |
| HDFC Bank Ltd. | 383,246 | 5,923,522 |
| Security | Number of Shares | Value ($) |
| Housing Development Finance Corp., Ltd. | 655,318 | 11,693,200 |
| ICICI Bank Ltd. | 1,180,060 | 4,933,263 |
| IndusInd Bank Ltd. | 123,937 | 1,599,761 |
| Kotak Mahindra Bank Ltd. | 308,952 | 3,028,868 |
| LIC Housing Finance Ltd. | 111,041 | 739,995 |
| Oriental Bank of Commerce | 56,155 | 114,929 |
| State Bank of India | 704,950 | 2,623,082 |
| Yes Bank Ltd. | 63,104 | 654,487 |
| 35,529,796 | ||
| Capital Goods 0.6% | ||
| ABB India Ltd. | 22,068 | 407,515 |
| Bharat Electronics Ltd. | 5,299 | 268,561 |
| Bharat Heavy Electricals Ltd. | 343,280 | 1,169,398 |
| Cummins India Ltd. | 46,035 | 761,075 |
| Eicher Motors Ltd. | 5,086 | 1,454,822 |
| Larsen & Toubro Ltd. | 111,861 | 2,697,285 |
| Siemens Ltd. | 37,393 | 711,494 |
| 7,470,150 | ||
| Consumer Durables & Apparel 0.1% | ||
| Titan Co., Ltd. | 127,751 | 649,181 |
| Diversified Financials 0.3% | ||
| Bajaj Holdings & Investment Ltd. | 13,861 | 330,381 |
| IDFC Ltd. | 425,451 | 831,701 |
| Mahindra & Mahindra Financial Services Ltd. | 129,343 | 491,591 |
| Power Finance Corp., Ltd. | 172,866 | 582,894 |
| Rural Electrification Corp., Ltd. | 168,575 | 642,221 |
| Shriram Transport Finance Co., Ltd. | 57,622 | 704,770 |
| 3,583,558 | ||
| Energy 1.5% | ||
| Bharat Petroleum Corp., Ltd. | 97,091 | 1,289,970 |
| Cairn India Ltd. | 204,129 | 457,390 |
| Coal India Ltd. | 557,950 | 3,074,915 |
| Essar Oil Ltd. * | 96,942 | 254,842 |
| Hindustan Petroleum Corp., Ltd. | 30,884 | 391,887 |
| Indian Oil Corp., Ltd. | 169,188 | 1,054,832 |
| Oil & Natural Gas Corp., Ltd. | 885,009 | 3,185,899 |
| Reliance Industries Ltd. | 693,136 | 8,924,484 |
| The Great Eastern Shipping Co., Ltd. | 90,960 | 503,479 |
| 19,137,698 | ||
| Food, Beverage & Tobacco 0.5% | ||
| ITC Ltd. | 844,230 | 4,129,393 |
| Nestle India Ltd. | 13,922 | 1,249,346 |
| United Spirits Ltd. * | 29,256 | 1,455,626 |
| 6,834,365 | ||
| Household & Personal Products 0.5% | ||
| Colgate-Palmolive (India) Ltd. | 23,620 | 694,583 |
| Dabur India Ltd. | 232,010 | 952,995 |
| Godrej Consumer Products Ltd. | 37,393 | 749,463 |
| Hindustan Unilever Ltd. | 329,534 | 4,267,707 |
| 6,664,748 | ||
| Materials 0.6% | ||
| Ambuja Cements Ltd. | 285,776 | 890,753 |
| Asian Paints Ltd. | 130,729 | 1,668,847 |
| Hindalco Industries Ltd. | 540,746 | 651,173 |
| JSW Steel Ltd. | 73,277 | 1,014,193 |
See financial notes 45
Schwab Emerging Markets Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| NMDC Ltd. | 329,794 | 501,078 |
| Pidilite Industries Ltd. | 29,040 | 249,379 |
| Tata Steel Ltd. | 120,148 | 407,392 |
| Ultratech Cement Ltd. | 42,910 | 1,865,383 |
| Vedanta Ltd. | 605,644 | 898,786 |
| 8,146,984 | ||
| Media 0.1% | ||
| Zee Entertainment Enterprises Ltd. | 268,644 | 1,555,084 |
| Pharmaceuticals, Biotechnology & Life Sciences 1.3% | ||
| Aurobindo Pharma Ltd. | 94,774 | 1,073,559 |
| Cipla Ltd. | 237,844 | 2,440,696 |
| Dr. Reddy's Laboratories Ltd. | 43,674 | 2,826,836 |
| Glenmark Pharmaceuticals Ltd. | 46,588 | 809,324 |
| Lupin Ltd. | 92,354 | 2,689,068 |
| Piramal Enterprises Ltd. | 39,845 | 583,724 |
| Sun Pharmaceutical Industries Ltd. | 471,544 | 6,376,751 |
| Wockhardt Ltd. | 13,017 | 262,856 |
| 17,062,814 | ||
| Real Estate 0.0% | ||
| DLF Ltd. | 243,361 | 405,998 |
| Software & Services 2.3% | ||
| HCL Technologies Ltd. | 237,308 | 3,466,535 |
| Infosys Ltd. | 827,760 | 13,627,688 |
| Oracle Financial Services Software Ltd. | 8,582 | 535,208 |
| Tata Consultancy Services Ltd. | 201,320 | 7,765,243 |
| Tech Mahindra Ltd. | 197,808 | 1,532,473 |
| Wipro Ltd. ADR | 176,087 | 2,061,979 |
| 28,989,126 | ||
| Telecommunication Services 0.5% | ||
| Bharti Airtel Ltd. | 596,942 | 3,181,595 |
| Bharti Infratel Ltd. | 230,443 | 1,385,778 |
| Idea Cellular Ltd. | 589,706 | 1,382,560 |
| Reliance Communications Ltd. * | 277,689 | 252,312 |
| 6,202,245 | ||
| Transportation 0.2% | ||
| Adani Ports & Special Economic Zone Ltd. | 438,831 | 2,346,483 |
| Utilities 0.4% | ||
| GAIL India Ltd. | 203,516 | 906,523 |
| NTPC Ltd. | 936,664 | 1,711,288 |
| Power Grid Corp. of India Ltd. | 589,093 | 1,157,804 |
| Reliance Infrastructure Ltd. | 71,108 | 365,354 |
| Tata Power Co., Ltd. | 698,820 | 636,533 |
| 4,777,502 | ||
| 160,365,041 | ||
| Indonesia 2.5% | ||
| Automobiles & Components 0.3% | ||
| PT Astra International Tbk | 8,549,557 | 3,605,418 |
| Banks 1.0% | ||
| PT Bank Central Asia Tbk | 5,159,717 | 4,737,391 |
| PT Bank Danamon Indonesia Tbk | 1,145,308 | 288,161 |
| PT Bank Mandiri (Persero) Tbk | 3,984,959 | 2,581,006 |
| Security | Number of Shares | Value ($) |
| PT Bank Negara Indonesia (Persero) Tbk | 3,678,747 | 1,296,071 |
| PT Bank Rakyat Indonesia (Persero) Tbk | 4,634,660 | 3,504,859 |
| 12,407,488 | ||
| Capital Goods 0.1% | ||
| PT United Tractors Tbk | 555,586 | 756,269 |
| Energy 0.0% | ||
| PT Adaro Energy Tbk | 8,195,970 | 347,089 |
| PT Tambang Batubara Bukit Asam (Persero) Tbk | 507,868 | 211,461 |
| 558,550 | ||
| Food, Beverage & Tobacco 0.2% | ||
| PT Astra Agro Lestari Tbk | 190,410 | 232,083 |
| PT Charoen Pokphand Indonesia Tbk | 3,767,295 | 501,412 |
| PT Gudang Garam Tbk | 207,378 | 656,820 |
| PT Indofood Sukses Makmur Tbk | 2,175,188 | 820,534 |
| 2,210,849 | ||
| Household & Personal Products 0.1% | ||
| PT Unilever Indonesia Tbk | 575,052 | 1,625,903 |
| Materials 0.2% | ||
| PT Indocement Tunggal Prakarsa Tbk | 613,000 | 856,237 |
| PT Semen Indonesia (Persero) Tbk | 1,329,308 | 875,167 |
| PT Vale Indonesia Tbk | 1,206,608 | 132,684 |
| 1,864,088 | ||
| Media 0.0% | ||
| PT Media Nusantara Citra Tbk | 2,779,654 | 374,907 |
| PT Surya Citra Media Tbk | 1,006,568 | 195,583 |
| 570,490 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.1% | ||
| PT Kalbe Farma Tbk | 11,611,064 | 1,384,237 |
| Telecommunication Services 0.4% | ||
| PT Telekomunikasi Indonesia (Persero) Tbk | 23,311,509 | 4,761,853 |
| PT Tower Bersama Infrastructure Tbk * | 402,624 | 205,610 |
| 4,967,463 | ||
| Transportation 0.0% | ||
| PT Jasa Marga Persero Tbk | 1,231,048 | 451,238 |
| Utilities 0.1% | ||
| PT Perusahaan Gas Negara (Persero) Tbk | 4,904,000 | 970,329 |
| 31,372,322 | ||
| Malaysia 4.1% | ||
| Automobiles & Components 0.1% | ||
| UMW Holdings Berhad | 426,300 | 862,750 |
| Banks 1.2% | ||
| Alliance Financial Group Berhad | 704,380 | 630,588 |
| AMMB Holdings Berhad | 752,072 | 841,604 |
| CIMB Group Holdings Berhad | 2,268,424 | 2,700,505 |
| Hong Leong Bank Berhad | 224,944 | 700,540 |
| Malayan Banking Berhad | 2,131,500 | 4,445,700 |
46 See financial notes
Schwab Emerging Markets Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Public Bank Berhad | 1,257,654 | 5,389,945 |
| RHB Capital Berhad | 310,144 | 478,508 |
| 15,187,390 | ||
| Capital Goods 0.4% | ||
| Gamuda Berhad | 1,342,016 | 1,386,750 |
| IJM Corp. Berhad | 617,568 | 926,352 |
| Sime Darby Berhad | 1,400,700 | 2,484,575 |
| 4,797,677 | ||
| Consumer Services 0.3% | ||
| Berjaya Sports Toto Berhad | 371,100 | 260,653 |
| Genting Berhad | 1,096,200 | 1,787,850 |
| Genting Malaysia Berhad | 1,415,720 | 1,334,822 |
| 3,383,325 | ||
| Energy 0.1% | ||
| Bumi Armada Berhad * | 1,035,300 | 210,758 |
| Petronas Dagangan Berhad | 121,800 | 613,640 |
| SapuraKencana Petroleum Berhad | 1,313,380 | 537,860 |
| 1,362,258 | ||
| Food, Beverage & Tobacco 0.4% | ||
| British American Tobacco Malaysia Berhad | 60,900 | 901,610 |
| Felda Global Ventures Holdings Berhad | 548,100 | 159,210 |
| IOI Corp. Berhad | 2,094,192 | 1,994,469 |
| Kuala Lumpur Kepong Berhad | 249,448 | 1,236,549 |
| PPB Group Berhad | 249,448 | 911,079 |
| 5,202,917 | ||
| Health Care Equipment & Services 0.1% | ||
| IHH Healthcare Berhad | 1,218,000 | 1,696,500 |
| Materials 0.2% | ||
| Lafarge Malaysia Berhad | 182,700 | 404,550 |
| Petronas Chemicals Group Berhad | 1,278,900 | 1,848,315 |
| 2,252,865 | ||
| Media 0.0% | ||
| Astro Malaysia Holdings Berhad | 854,500 | 590,012 |
| Real Estate 0.1% | ||
| IOI Properties Group Berhad | 852,600 | 371,490 |
| KLCCP Stapled Group | 188,244 | 313,740 |
| SP Setia Berhad Group | 988,716 | 727,413 |
| 1,412,643 | ||
| Telecommunication Services 0.6% | ||
| Axiata Group Berhad | 1,723,952 | 2,520,254 |
| DiGi.com Berhad | 1,948,800 | 2,426,720 |
| Maxis Berhad | 1,038,524 | 1,624,548 |
| Telekom Malaysia Berhad | 304,500 | 470,525 |
| 7,042,047 | ||
| Transportation 0.1% | ||
| Malaysia Airports Holdings Berhad | 304,500 | 313,200 |
| MISC Berhad | 730,800 | 1,409,400 |
| 1,722,600 | ||
| Utilities 0.5% | ||
| Petronas Gas Berhad | 345,436 | 1,753,499 |
| Tenaga Nasional Berhad | 1,200,174 | 3,194,749 |
| Security | Number of Shares | Value ($) |
| YTL Corp. Berhad | 2,323,312 | 862,944 |
| YTL Power International Berhad | 1,592,701 | 587,783 |
| 6,398,975 | ||
| 51,911,959 | ||
| Mexico 5.5% | ||
| Banks 0.6% | ||
| Grupo Elektra S.A.B. de C.V. | 18,390 | 319,041 |
| Grupo Financiero Banorte S.A.B. de C.V., O Shares | 955,326 | 4,577,936 |
| Grupo Financiero Inbursa S.A.B. de C.V., O Shares | 935,175 | 1,970,110 |
| Grupo Financiero Santander Mexico S.A.B. de C.V., B Shares | 549,010 | 854,597 |
| 7,721,684 | ||
| Capital Goods 0.3% | ||
| Alfa S.A.B. de C.V., A Shares | 1,103,400 | 2,195,621 |
| Grupo Carso S.A.B. de C.V., Series A1 | 188,948 | 856,910 |
| Promotora y Operadora de Infraestructura S.A.B. de C.V. * | 71,496 | 750,580 |
| 3,803,111 | ||
| Consumer Services 0.0% | ||
| Alsea S.A.B. de C.V. | 111,041 | 341,593 |
| Diversified Financials 0.1% | ||
| Gentera S.A.B. de C.V. | 490,400 | 782,068 |
| Food & Staples Retailing 0.5% | ||
| Controladora Comercial Mexicana S.A.B. de C.V. | 245,200 | 698,923 |
| Organizacion Soriana S.A.B. de C.V., B Shares * | 71,196 | 138,064 |
| Wal-Mart de Mexico S.A.B. de C.V., Series V | 2,427,055 | 5,804,393 |
| 6,641,380 | ||
| Food, Beverage & Tobacco 1.1% | ||
| Arca Continental S.A.B. de C.V. | 150,195 | 855,252 |
| Coca-Cola Femsa S.A.B. de C.V., Series L | 199,375 | 1,431,745 |
| Fomento Economico Mexicano S.A.B. de C.V. | 950,550 | 8,460,348 |
| Gruma S.A.B. de C.V., B Shares | 61,300 | 822,399 |
| Grupo Bimbo S.A.B. de C.V., Series A * | 858,200 | 2,203,293 |
| Grupo Lala S.A.B. de C.V. | 259,513 | 585,374 |
| 14,358,411 | ||
| Household & Personal Products 0.1% | ||
| Kimberly-Clark de Mexico S.A.B. de C.V., A Shares | 367,800 | 823,057 |
| Materials 0.9% | ||
| Alpek S.A.B. de C.V. | 294,680 | 367,736 |
| Cemex S.A.B. de C.V., Series CPO * | 5,499,591 | 4,303,315 |
| Grupo Mexico S.A.B. de C.V., Series B | 1,704,420 | 4,311,837 |
| Industrias CH S.A.B. de C.V., Series B * | 61,300 | 208,011 |
See financial notes 47
Schwab Emerging Markets Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Industrias Penoles S.A.B. de C.V. | 61,300 | 870,986 |
| Mexichem S.A.B. de C.V. | 551,700 | 1,411,142 |
| 11,473,027 | ||
| Media 0.6% | ||
| Grupo Televisa S.A.B., Series CPO | 1,160,145 | 7,083,245 |
| Pharmaceuticals, Biotechnology & Life Sciences 0.0% | ||
| Genomma Lab Internacional S.A.B. de C.V., B Shares * | 715,208 | 578,389 |
| Real Estate 0.2% | ||
| Concentradora Fibra Danhos S.A. de C.V. | 142,592 | 286,969 |
| Fibra Uno Administracion S.A. de C.V. | 866,603 | 1,853,539 |
| 2,140,508 | ||
| Telecommunication Services 0.9% | ||
| America Movil S.A.B. de C.V., Series L | 12,985,183 | 11,816,671 |
| Transportation 0.2% | ||
| Grupo Aeroportuario del Pacifico S.A.B. de C.V., B Shares | 50,328 | 421,040 |
| Grupo Aeroportuario del Sureste S.A.B. de C.V., B Shares | 122,600 | 1,781,280 |
| OHL Mexico S.A.B. de C.V. * | 367,800 | 488,354 |
| 2,690,674 | ||
| Utilities 0.0% | ||
| Infraestructura Energetica Nova S.A.B. de C.V. | 104,370 | 461,766 |
| 70,715,584 | ||
| Pakistan 0.0% | ||
| Energy 0.0% | ||
| Oil & Gas Development Co., Ltd. GDR - Reg'd (d) | 9,984 | 137,863 |
| Peru 0.2% | ||
| Banks 0.1% | ||
| Credicorp Ltd. | 23,294 | 2,561,874 |
| Materials 0.1% | ||
| Companhia de Minas Buenaventura S.A. ADR | 107,550 | 679,716 |
| 3,241,590 | ||
| Philippines 1.9% | ||
| Banks 0.3% | ||
| Bank of the Philippine Islands | 885,901 | 1,603,492 |
| BDO Unibank, Inc. | 772,440 | 1,627,842 |
| Metropolitan Bank & Trust Co. | 395,210 | 708,148 |
| 3,939,482 | ||
| Capital Goods 0.5% | ||
| Aboitiz Equity Ventures, Inc. | 858,200 | 1,011,699 |
| Alliance Global Group, Inc. | 1,900,300 | 805,005 |
| DMCI Holdings, Inc. | 2,145,500 | 522,375 |
| JG Summit Holdings, Inc. | 899,437 | 1,366,282 |
| LT Group, Inc. | 1,348,600 | 375,092 |
| SM Investments Corp. | 127,913 | 2,402,816 |
| 6,483,269 | ||
| Security | Number of Shares | Value ($) |
| Consumer Services 0.1% | ||
| Jollibee Foods Corp. | 196,160 | 803,694 |
| Diversified Financials 0.2% | ||
| Ayala Corp. | 106,132 | 1,675,769 |
| GT Capital Holdings, Inc. | 24,520 | 666,247 |
| 2,342,016 | ||
| Food, Beverage & Tobacco 0.1% | ||
| Universal Robina Corp. | 380,060 | 1,577,485 |
| Real Estate 0.3% | ||
| Ayala Land, Inc. | 2,452,000 | 1,885,952 |
| Megaworld Corp. | 4,675,126 | 433,104 |
| SM Prime Holdings, Inc. | 4,168,560 | 1,739,130 |
| 4,058,186 | ||
| Telecommunication Services 0.1% | ||
| Philippine Long Distance Telephone Co. | 39,314 | 2,117,943 |
| Transportation 0.1% | ||
| International Container Terminal Services, Inc. | 570,090 | 1,133,716 |
| Utilities 0.2% | ||
| Aboitiz Power Corp. | 1,085,984 | 1,004,895 |
| Energy Development Corp. | 5,274,324 | 677,063 |
| Manila Electric Co. | 73,560 | 446,963 |
| 2,128,921 | ||
| 24,584,712 | ||
| Poland 1.9% | ||
| Banks 0.7% | ||
| Bank Handlowy w Warszawie S.A. | 26,359 | 610,862 |
| Bank Millennium S.A. * | 257,460 | 406,051 |
| Bank Pekao S.A. | 55,170 | 2,353,680 |
| Bank Zachodni WBK S.A. * | 13,155 | 1,056,542 |
| Getin Noble Bank S.A. * | 882,769 | 205,913 |
| mBank S.A. * | 8,452 | 817,722 |
| Powszechna Kasa Oszczednosci Bank Polski S.A. | 375,156 | 2,957,375 |
| 8,408,145 | ||
| Consumer Durables & Apparel 0.1% | ||
| LPP S.A. | 613 | 1,267,385 |
| Energy 0.4% | ||
| Polski Koncern Naftowy Orlen S.A. | 168,575 | 3,298,979 |
| Polskie Gornictwo Naftowe i Gazownictwo S.A. | 885,069 | 1,592,943 |
| 4,891,922 | ||
| Food & Staples Retailing 0.0% | ||
| Eurocash S.A. | 8,288 | 91,390 |
| Insurance 0.2% | ||
| Powszechny Zaklad Ubezpieczen S.A. | 25,746 | 2,939,943 |
| Materials 0.1% | ||
| Grupa Azoty S.A. * | 5,700 | 135,979 |
| KGHM Polska Miedz S.A. | 73,091 | 1,521,433 |
| 1,657,412 | ||
| Media 0.1% | ||
| Cyfrowy Polsat S.A. * | 133,196 | 798,615 |
48 See financial notes
Schwab Emerging Markets Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Software & Services 0.0% | ||
| Asseco Poland S.A. | 27,444 | 381,109 |
| Telecommunication Services 0.1% | ||
| Orange Polska S.A. | 296,079 | 557,211 |
| Utilities 0.2% | ||
| Enea S.A. | 107,888 | 406,083 |
| Energa S.A. | 110,340 | 571,785 |
| PGE S.A. | 378,281 | 1,565,204 |
| Tauron Polska Energia S.A. | 354,465 | 328,848 |
| 2,871,920 | ||
| 23,865,052 | ||
| Russia 4.0% | ||
| Banks 0.4% | ||
| Sberbank of Russia * | 4,011,001 | 4,478,712 |
| VTB Bank JSC GDR - Reg’d | 492,980 | 1,025,398 |
| 5,504,110 | ||
| Diversified Financials 0.1% | ||
| Moscow Exchange MICEX-RTS PJSC | 816,782 | 909,698 |
| Energy 2.1% | ||
| Gazprom PAO | 1 | 2 |
| Gazprom PAO ADR | 2,490,310 | 10,982,267 |
| LUKOIL PJSC * | 1 | 38 |
| LUKOIL PJSC ADR | 217,753 | 8,213,643 |
| NovaTek OAO * | 351,860 | 3,338,240 |
| Rosneft OJSC GDR - Reg'd | 385,518 | 1,452,632 |
| Surgutneftegas OAO * | 1,435,006 | 737,613 |
| Surgutneftegas OAO ADR | 25,273 | 131,925 |
| Tatneft PAO * | 1 | 5 |
| Tatneft PAO ADR | 84,657 | 2,405,106 |
| 27,261,471 | ||
| Food & Staples Retailing 0.5% | ||
| Magnit PJSC GDR - Reg'd | 125,381 | 6,268,423 |
| Materials 0.6% | ||
| Magnitogorsk Iron & Steel Works OJSC * | 1,958,845 | 653,242 |
| MMC Norilsk Nickel PJSC *(f) | 1 | 158 |
| MMC Norilsk Nickel PJSC ADR (f) | 222,919 | 3,529,922 |
| Novolipetsk Steel OJSC GDR - Reg'd | 35,119 | 417,916 |
| PhosAgro OAO GDR - Reg'd | 33,292 | 467,753 |
| Severstal PAO GDR - Reg'd | 106,121 | 1,130,189 |
| Uralkali PJSC GDR - Reg'd * | 73,972 | 1,143,607 |
| 7,342,787 | ||
| Telecommunication Services 0.2% | ||
| MegaFon PJSC GDR - Reg'd | 26,159 | 336,143 |
| Mobile TeleSystems PJSC ADR | 160,081 | 1,221,418 |
| Rostelecom PJSC * | 325,374 | 397,403 |
| 1,954,964 | ||
| Transportation 0.0% | ||
| Aeroflot-Russian Airlines PJSC * | 490,400 | 294,005 |
| Utilities 0.1% | ||
| E.ON Russia JSC * | 4,694,067 | 201,357 |
| Federal Grid Co. Unified Energy System JSC * | 249,040,715 | 242,566 |
| Inter RAO JSC * | 12,458,000 | 212,484 |
| Security | Number of Shares | Value ($) |
| Rosseti JSC * | 36,458,226 | 247,004 |
| RusHydro PJSC * | 23,122,189 | 184,538 |
| 1,087,949 | ||
| 50,623,407 | ||
| South Africa 9.7% | ||
| Banks 0.8% | ||
| Barclays Africa Group Ltd. | 142,829 | 1,871,042 |
| Capitec Bank Holdings Ltd. | 21,696 | 789,785 |
| Nedbank Group Ltd. | 77,851 | 1,385,022 |
| Standard Bank Group Ltd. | 510,210 | 5,620,513 |
| 9,666,362 | ||
| Capital Goods 0.3% | ||
| Barloworld Ltd. | 108,501 | 696,932 |
| Reunert Ltd. | 105,436 | 510,637 |
| The Bidvest Group Ltd. | 138,538 | 3,330,740 |
| 4,538,309 | ||
| Consumer Durables & Apparel 0.5% | ||
| Steinhoff International Holdings Ltd. | 974,146 | 5,835,659 |
| Consumer Services 0.0% | ||
| Sun International Ltd. | 49,040 | 383,580 |
| Diversified Financials 1.2% | ||
| Brait SE * | 111,583 | 1,221,299 |
| Coronation Fund Managers Ltd. | 126,278 | 703,160 |
| FirstRand Ltd. | 1,319,879 | 5,264,889 |
| Investec Ltd. | 141,603 | 1,152,104 |
| JSE Ltd. | 81,567 | 846,463 |
| Remgro Ltd. | 209,646 | 3,998,435 |
| RMB Holdings Ltd. | 361,057 | 1,827,844 |
| 15,014,194 | ||
| Energy 0.6% | ||
| Exxaro Resources Ltd. | 55,783 | 285,218 |
| Sasol Ltd. | 235,049 | 7,529,613 |
| 7,814,831 | ||
| Food & Staples Retailing 0.4% | ||
| Clicks Group Ltd. | 115,316 | 795,825 |
| Massmart Holdings Ltd. | 48,487 | 418,916 |
| Pick n Pay Stores Ltd. | 129,956 | 613,321 |
| Shoprite Holdings Ltd. | 191,417 | 2,343,169 |
| The SPAR Group Ltd. | 77,851 | 1,115,155 |
| 5,286,386 | ||
| Food, Beverage & Tobacco 0.2% | ||
| AVI Ltd. | 172,074 | 1,050,794 |
| Pioneer Foods Ltd. | 40,711 | 610,776 |
| Tiger Brands Ltd. | 69,122 | 1,562,303 |
| 3,223,873 | ||
| Health Care Equipment & Services 0.4% | ||
| Life Healthcare Group Holdings Ltd. | 457,298 | 1,312,155 |
| Mediclinic International Ltd. | 175,075 | 1,406,223 |
| Netcare Ltd. | 681,043 | 2,046,582 |
| 4,764,960 | ||
See financial notes 49
Schwab Emerging Markets Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Insurance 0.6% | ||
| Discovery Ltd. | 228,894 | 2,312,538 |
| MMI Holdings Ltd. | 628,325 | 1,331,565 |
| Sanlam Ltd. | 762,194 | 3,665,519 |
| 7,309,622 | ||
| Materials 0.7% | ||
| Aeci Ltd. | 74,786 | 549,214 |
| Anglo American Platinum Ltd. * | 24,332 | 587,358 |
| AngloGold Ashanti Ltd. * | 171,027 | 1,376,932 |
| Gold Fields Ltd. | 354,314 | 1,137,662 |
| Impala Platinum Holdings Ltd. * | 239,683 | 894,819 |
| Mondi Ltd. | 57,891 | 1,342,108 |
| Nampak Ltd. | 320,015 | 744,532 |
| Northam Platinum Ltd. * | 106,110 | 301,669 |
| PPC Ltd. | 262,151 | 428,873 |
| Sappi Ltd. * | 259,299 | 831,016 |
| Sibanye Gold Ltd. | 345,868 | 396,343 |
| 8,590,526 | ||
| Media 1.6% | ||
| Naspers Ltd., N Shares | 157,144 | 20,365,308 |
| Pharmaceuticals, Biotechnology & Life Sciences 0.3% | ||
| Aspen Pharmacare Holdings Ltd. * | 136,909 | 3,535,270 |
| Real Estate 0.4% | ||
| Capital Property Fund * | 768,922 | 904,324 |
| Growthpoint Properties Ltd. | 1,034,007 | 2,039,288 |
| Hyprop Investments Ltd. | 89,256 | 834,404 |
| Redefine Properties Ltd. | 1,447,542 | 1,252,825 |
| Resilient Property Income Fund Ltd. | 91,657 | 773,929 |
| 5,804,770 | ||
| Retailing 0.7% | ||
| Imperial Holdings Ltd. | 86,433 | 1,202,246 |
| Mr. Price Group Ltd. | 94,593 | 1,701,843 |
| The Foschini Group Ltd. | 74,623 | 843,319 |
| Truworths International Ltd. | 204,129 | 1,352,421 |
| Woolworths Holdings Ltd. | 441,982 | 3,315,469 |
| 8,415,298 | ||
| Software & Services 0.0% | ||
| EOH Holdings Ltd. | 23,425 | 279,915 |
| Telecommunication Services 1.0% | ||
| MTN Group Ltd. | 744,757 | 9,936,457 |
| Telkom S.A. SOC Ltd. | 134,860 | 645,616 |
| Vodacom Group Ltd. | 161,219 | 1,719,726 |
| 12,301,799 | ||
| Transportation 0.0% | ||
| Grindrod Ltd. | 183,287 | 196,217 |
| 123,326,879 | ||
| Taiwan 14.0% | ||
| Automobiles & Components 0.2% | ||
| Cheng Shin Rubber Industry Co., Ltd. | 1,065,277 | 1,709,106 |
| Yulon Motor Co., Ltd. | 388,192 | 351,372 |
| 2,060,478 | ||
| Security | Number of Shares | Value ($) |
| Banks 1.5% | ||
| Chang Hwa Commercial Bank Ltd. | 1,605,094 | 779,459 |
| China Development Financial Holding Corp. | 5,522,308 | 1,593,757 |
| CTBC Financial Holding Co., Ltd. | 6,816,623 | 4,106,399 |
| E.Sun Financial Holding Co., Ltd. | 3,088,587 | 1,855,848 |
| Far Eastern International Bank | 757,829 | 246,895 |
| First Financial Holding Co., Ltd. | 3,094,945 | 1,498,198 |
| Hua Nan Financial Holdings Co., Ltd. | 3,453,715 | 1,634,719 |
| Mega Financial Holding Co., Ltd. | 4,291,548 | 3,218,397 |
| SinoPac Financial Holdings Co., Ltd. | 3,956,734 | 1,362,043 |
| Taishin Financial Holding Co., Ltd. | 4,039,848 | 1,415,487 |
| Taiwan Cooperative Financial Holding Co., Ltd. | 3,007,863 | 1,275,772 |
| 18,986,974 | ||
| Capital Goods 0.2% | ||
| Far Eastern New Century Corp. | 1,966,799 | 1,783,273 |
| Taiwan Glass Industry Corp. * | 635,252 | 255,772 |
| Teco Electric & Machinery Co., Ltd. | 613,000 | 461,596 |
| Walsin Lihwa Corp. * | 2,452,000 | 547,887 |
| 3,048,528 | ||
| Consumer Durables & Apparel 0.2% | ||
| Formosa Taffeta Co., Ltd. | 613,000 | 533,191 |
| Giant Manufacturing Co., Ltd. | 91,752 | 664,113 |
| Pou Chen Corp. | 1,081,792 | 1,748,902 |
| 2,946,206 | ||
| Diversified Financials 0.6% | ||
| Capital Securities Corp. | 1,050,789 | 267,413 |
| Fubon Financial Holding Co., Ltd. | 3,191,114 | 5,482,643 |
| Yuanta Financial Holding Co., Ltd. | 4,250,700 | 1,704,931 |
| 7,454,987 | ||
| Energy 0.1% | ||
| Formosa Petrochemical Corp. | 693,660 | 1,554,211 |
| Food & Staples Retailing 0.1% | ||
| President Chain Store Corp. | 210,400 | 1,406,504 |
| Food, Beverage & Tobacco 0.3% | ||
| Uni-President Enterprises Corp. | 2,109,676 | 3,760,794 |
| Insurance 0.4% | ||
| Cathay Financial Holding Co., Ltd. | 3,178,189 | 4,581,296 |
| Shin Kong Financial Holding Co., Ltd. | 4,080,308 | 968,158 |
| 5,549,454 | ||
| Materials 1.6% | ||
| Asia Cement Corp. | 987,286 | 1,060,538 |
| China Steel Corp. | 5,111,956 | 3,063,780 |
| Formosa Chemicals & Fibre Corp. | 1,901,008 | 4,066,577 |
| Formosa Plastics Corp. | 2,505,560 | 5,521,535 |
| Nan Ya Plastics Corp. | 2,565,816 | 4,676,447 |
| Taiwan Cement Corp. | 1,415,246 | 1,515,900 |
| Taiwan Fertilizer Co., Ltd. | 183,508 | 232,092 |
| YFY, Inc. | 1,226,000 | 367,016 |
| 20,503,885 | ||
50 See financial notes
Schwab Emerging Markets Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Real Estate 0.0% | ||
| Cathay Real Estate Development Co., Ltd. | 768,276 | 297,525 |
| Retailing 0.1% | ||
| Hotai Motor Co., Ltd. | 141,160 | 1,553,211 |
| Semiconductors & Semiconductor Equipment 4.3% | ||
| Advanced Semiconductor Engineering, Inc. | 2,699,524 | 2,787,804 |
| Epistar Corp. | 343,828 | 277,928 |
| Hermes Microvision, Inc. | 26,000 | 1,102,778 |
| Inotera Memories, Inc. * | 1,072,000 | 645,783 |
| MediaTek, Inc. | 617,713 | 4,765,366 |
| Novatek Microelectronics Corp. | 301,608 | 1,010,428 |
| Realtek Semiconductor Corp. | 162,336 | 291,383 |
| Siliconware Precision Industries Co., Ltd. ADR | 290,201 | 1,790,540 |
| Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 2,001,202 | 39,783,896 |
| United Microelectronics Corp. ADR | 1,051,606 | 1,714,118 |
| Vanguard International Semiconductor Corp. | 300,000 | 341,161 |
| 54,511,185 | ||
| Technology Hardware & Equipment 3.5% | ||
| Acer, Inc. * | 1,226,086 | 452,208 |
| Advantech Co., Ltd. | 142,516 | 906,713 |
| Asustek Computer, Inc. | 292,426 | 2,660,379 |
| AU Optronics Corp. ADR | 379,282 | 1,187,153 |
| Catcher Technology Co., Ltd. | 311,224 | 3,175,755 |
| Chicony Electronics Co., Ltd. | 231,952 | 576,030 |
| Compal Electronics, Inc. | 1,842,638 | 1,076,043 |
| Delta Electronics, Inc. | 819,700 | 4,106,562 |
| Foxconn Technology Co., Ltd. | 461,699 | 1,298,422 |
| Hon Hai Precision Industry Co., Ltd. | 5,373,304 | 15,276,328 |
| HTC Corp. | 308,778 | 437,031 |
| Innolux Corp. | 4,166,029 | 1,472,502 |
| Inventec Corp. | 1,469,145 | 672,801 |
| Largan Precision Co., Ltd. | 44,256 | 4,107,854 |
| Lite-On Technology Corp. | 937,601 | 858,757 |
| Pegatron Corp. | 869,657 | 2,250,588 |
| Quanta Computer, Inc. | 1,226,000 | 2,253,344 |
| Synnex Technology International Corp. | 619,101 | 658,375 |
| TPK Holding Co., Ltd. | 92,756 | 232,346 |
| Unimicron Technology Corp. | 898,348 | 347,897 |
| Wistron Corp. | 1,366,668 | 676,277 |
| 44,683,365 | ||
| Telecommunication Services 0.7% | ||
| Chunghwa Telecom Co., Ltd. ADR (a) | 171,040 | 5,204,747 |
| Far EasTone Telecommunications Co., Ltd. | 647,280 | 1,420,451 |
| Taiwan Mobile Co., Ltd. | 725,524 | 2,180,854 |
| 8,806,052 | ||
| Transportation 0.2% | ||
| China Airlines Ltd. * | 1,453,872 | 522,815 |
| Eva Airways Corp. * | 1,119,675 | 676,224 |
| Evergreen Marine Corp., Ltd. | 1,238,380 | 542,381 |
| Security | Number of Shares | Value ($) |
| U-Ming Marine Transport Corp. | 191,576 | 189,892 |
| Wan Hai Lines Ltd. | 216,000 | 148,709 |
| 2,080,021 | ||
| 179,203,380 | ||
| Thailand 2.7% | ||
| Banks 0.6% | ||
| Bangkok Bank PCL NVDR | 245,200 | 1,125,273 |
| Kasikornbank PCL NVDR | 503,300 | 2,534,402 |
| Krung Thai Bank PCL NVDR | 2,113,200 | 1,072,960 |
| The Siam Commercial Bank PCL NVDR | 674,300 | 2,671,240 |
| TMB Bank PCL NVDR | 6,436,500 | 423,773 |
| 7,827,648 | ||
| Capital Goods 0.0% | ||
| Berli Jucker PCL NVDR | 183,900 | 155,195 |
| Consumer Services 0.1% | ||
| Minor International PCL NVDR | 941,580 | 696,105 |
| Energy 0.4% | ||
| Banpu PCL NVDR | 613,000 | 352,289 |
| IRPC PCL NVDR | 4,979,000 | 527,834 |
| PTT Exploration & Production PCL NVDR | 636,304 | 1,411,247 |
| PTT PCL NVDR | 370,400 | 2,769,346 |
| Thai Oil PCL NVDR | 260,900 | 374,846 |
| 5,435,562 | ||
| Food & Staples Retailing 0.3% | ||
| Big C Supercenter PCL NVDR | 122,600 | 678,926 |
| CP ALL PCL NVDR | 2,059,300 | 2,929,957 |
| 3,608,883 | ||
| Food, Beverage & Tobacco 0.1% | ||
| Charoen Pokphand Foods PCL NVDR | 1,564,800 | 829,438 |
| Health Care Equipment & Services 0.1% | ||
| Bangkok Dusit Medical Services PCL NVDR | 1,444,100 | 785,603 |
| Materials 0.2% | ||
| Indorama Ventures PCL NVDR | 403,700 | 245,520 |
| PTT Global Chemical PCL NVDR | 858,214 | 1,436,542 |
| The Siam Cement PCL NVDR | 141,000 | 1,888,129 |
| 3,570,191 | ||
| Media 0.1% | ||
| BEC World PCL NVDR | 674,300 | 696,027 |
| Real Estate 0.1% | ||
| Central Pattana PCL NVDR | 736,800 | 924,982 |
| Land & Houses PCL NVDR | 1,226,000 | 266,782 |
| 1,191,764 | ||
| Retailing 0.0% | ||
| Home Product Center PCL NVDR | 947,619 | 192,987 |
| Technology Hardware & Equipment 0.0% | ||
| Delta Electronics Thailand PCL NVDR | 115,600 | 280,575 |
See financial notes 51
Schwab Emerging Markets Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Telecommunication Services 0.5% | ||
| Advanced Info Service PCL NVDR | 551,700 | 3,663,122 |
| Intouch Holding PCL NVDR | 674,300 | 1,448,489 |
| Total Access Communication PCL NVDR | 285,400 | 535,449 |
| True Corp. PCL NVDR * | 3,837,407 | 1,038,439 |
| 6,685,499 | ||
| Transportation 0.1% | ||
| Airports of Thailand PCL NVDR | 208,900 | 1,608,492 |
| Utilities 0.1% | ||
| Electricity Generating PCL NVDR | 122,600 | 543,825 |
| Glow Energy PCL NVDR | 255,900 | 704,983 |
| 1,248,808 | ||
| 34,812,777 | ||
| Turkey 1.7% | ||
| Banks 0.6% | ||
| Akbank T.A.S. | 842,674 | 1,974,248 |
| Turkiye Garanti Bankasi A/S | 903,562 | 2,290,721 |
| Turkiye Halk Bankasi A/S | 239,737 | 918,264 |
| Turkiye Is Bankasi, C Shares | 651,892 | 1,090,592 |
| Turkiye Vakiflar Bankasi T.A.O., Class D | 524,229 | 693,329 |
| Yapi ve Kredi Bankasi A/S | 399,380 | 492,537 |
| 7,459,691 | ||
| Capital Goods 0.2% | ||
| Enka Insaat ve Sanayi A/S | 273,778 | 467,426 |
| KOC Holding A/S | 370,117 | 1,443,088 |
| 1,910,514 | ||
| Consumer Durables & Apparel 0.0% | ||
| Arcelik A/S | 91,337 | 428,289 |
| Diversified Financials 0.1% | ||
| Haci Omer Sabanci Holding A/S | 363,555 | 1,086,544 |
| Energy 0.1% | ||
| Tupras-Turkiye Petrol Rafinerileri A/S * | 60,094 | 1,550,347 |
| Food & Staples Retailing 0.1% | ||
| BIM Birlesik Magazalar A/S | 96,398 | 1,670,656 |
| Food, Beverage & Tobacco 0.1% | ||
| Anadolu Efes Biracilik Ve Malt Sanayii A/S | 115,440 | 860,546 |
| Coca-Cola Icecek A/S | 26,982 | 333,683 |
| 1,194,229 | ||
| Materials 0.1% | ||
| Eregli Demir ve Celik Fabrikalari T.A.S. | 625,982 | 851,559 |
| Koza Altin Isletmeleri A/S | 42,946 | 359,973 |
| Petkim Petrokimya Holding A/S * | 406,442 | 550,114 |
| 1,761,646 | ||
| Real Estate 0.1% | ||
| Emlak Konut Gayrimenkul Yatirim Ortakligi A/S | 1,350,257 | 1,154,978 |
| Telecommunication Services 0.2% | ||
| Turk Telekomunikasyon A/S | 244,587 | 514,212 |
| Turkcell Iletisim Hizmetleri A/S | 359,831 | 1,409,163 |
| 1,923,375 | ||
| Security | Number of Shares | Value ($) |
| Transportation 0.1% | ||
| TAV Havalimanlari Holding A/S | 47,940 | 387,011 |
| Turk Hava Yollari Anonim Ortakligi * | 326,539 | 903,002 |
| 1,290,013 | ||
| 21,430,282 | ||
| United Arab Emirates 1.1% | ||
| Banks 0.4% | ||
| Abu Dhabi Commercial Bank PJSC | 557,954 | 1,215,239 |
| Dubai Islamic Bank PJSC | 323,664 | 616,830 |
| First Gulf Bank PJSC | 537,259 | 2,098,982 |
| Union National Bank PJSC | 416,370 | 674,481 |
| 4,605,532 | ||
| Capital Goods 0.0% | ||
| Arabtec Holding PJSC * | 1,034,422 | 554,801 |
| Diversified Financials 0.0% | ||
| Dubai Financial Market PJSC | 1,270,392 | 594,894 |
| Energy 0.1% | ||
| Dana Gas PJSC * | 6,087,094 | 894,905 |
| Real Estate 0.4% | ||
| Aldar Properties PJSC | 1,541,082 | 977,585 |
| Deyaar Development PJSC * | 915,209 | 165,697 |
| Emaar Malls Group PJSC * | 899,884 | 698,240 |
| Emaar Properties PJSC | 1,647,906 | 3,028,373 |
| 4,869,895 | ||
| Transportation 0.2% | ||
| DP World Ltd. | 114,252 | 2,547,819 |
| 14,067,846 | ||
| Total Common Stock | ||
| (Cost $1,419,144,154) | 1,244,294,754 | |
| Preferred Stock 2.0% of net assets | ||
| Brazil 1.7% | ||
| Banks 0.8% | ||
| Banco Bradesco S.A. | 1,060,940 | 6,714,165 |
| Itausa - Investimentos Itau S.A. | 1,531,807 | 3,061,721 |
| 9,775,886 | ||
| Energy 0.4% | ||
| Petroleo Brasileiro S.A. * | 1,903,006 | 4,801,599 |
| Food & Staples Retailing 0.1% | ||
| Cia Brasileira de Distribuicao | 61,300 | 1,068,721 |
| Materials 0.1% | ||
| Braskem S.A., A Shares | 114,143 | 440,934 |
| Gerdau S.A. | 391,094 | 563,729 |
| Suzano Papel e Celulose S.A., A Shares | 122,600 | 591,752 |
| 1,596,415 | ||
| Retailing 0.1% | ||
| Lojas Americanas S.A. | 229,875 | 1,028,750 |
| Telecommunication Services 0.1% | ||
| Telefonica Brasil S.A. | 152,796 | 1,694,401 |
52 See financial notes
Schwab Emerging Markets Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Utilities 0.1% | ||
| Companhia Energetica de Minas Gerais | 341,427 | 704,930 |
| Companhia Energetica de Sao Paulo, B Shares | 80,593 | 356,913 |
| Companhia Paranaense de Energia - Copel, B Shares | 61,300 | 521,738 |
| 1,583,581 | ||
| 21,549,353 | ||
| Colombia 0.1% | ||
| Banks 0.0% | ||
| Grupo Aval Acciones y Valores | 1,200,254 | 457,831 |
| Diversified Financials 0.1% | ||
| Grupo de Inversiones Suramericana S.A. | 44,392 | 503,401 |
| 961,232 | ||
| Russia 0.2% | ||
| Energy 0.2% | ||
| AK Transneft OAO * | 350 | 828,312 |
| Surgutneftegas OAO * | 4,152,845 | 2,514,614 |
| 3,342,926 | ||
| Total Preferred Stock | ||
| (Cost $48,701,294) | 25,853,511 | |
| Other Investment Companies 1.4% of net assets | ||
| United States 1.4% | ||
| Money Market Fund 0.3% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (e) | 3,645,321 | 3,645,321 |
| Securities Lending Collateral 1.1% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (e) | 14,672,978 | 14,672,978 |
| Total Other Investment Companies | ||
| (Cost $18,318,299) | 18,318,299 | |
End of Investments
At 08/31/15, the tax basis cost of the fund's investments was $1,498,219,850 and the unrealized appreciation and depreciation were $95,198,942 and ($304,952,228), respectively, with a net unrealized depreciation of ($209,753,286).
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $14,164,116. Non-cash collateral pledged to the fund for securities on loan amounted to $977,527. |
| (b) | Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $2,726,988 or 0.2% of net assets. |
| (c) | Fair-valued by management in accordance with procedures approved by the Board of Trustees. |
| (d) | Illiquid security. At the period end, the value of these amounted to $4,231,025 or 0.3% of net assets. |
| (e) | The rate shown is the 7-day yield. |
| (f) | Securities are traded on separate exchanges for the same entity. |
| ADR — | American Depositary Receipt |
| GDR — | Global Depositary Receipt |
| NVDR — | Non-Voting Depositary Receipt |
| Reg'd — | Registered |
In addition to the above, the fund held the following at 8/31/15:
| Number of Contracts | Contract Value ($) | Unrealized Depreciation ($) | ||||
| Futures Contracts | ||||||
| MSCI EAFE, e-mini, Long, expires 09/18/15 | 100 | 4,087,500 | (65,459) | |||
See financial notes 53
Table of Contents
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2015
This section shows all the securities in the fund's portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be viewed and copied at the SEC's Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund's website at www.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.6% | Common Stock | 4,269,255,785 | 4,899,860,956 |
| 0.0% | Rights | 21,491 | 21,491 |
| 0.6% | Other Investment Companies | 31,483,198 | 31,483,198 |
| 100.2% | Total Investments | 4,300,760,474 | 4,931,365,645 |
| (0.2%) | Other Assets and Liabilities, Net | (12,180,608) | |
| 100.0% | Net Assets | 4,919,185,037 | |
| Security | Number of Shares | Value ($) |
| Common Stock 99.6% of net assets | ||
| Automobiles & Components 1.1% | ||
| American Axle & Manufacturing Holdings, Inc. * | 14,656 | 296,051 |
| Autoliv, Inc. (a) | 20,940 | 2,139,021 |
| BorgWarner, Inc. | 53,300 | 2,326,012 |
| Cooper Tire & Rubber Co. | 12,888 | 497,477 |
| Cooper-Standard Holding, Inc. * | 6,238 | 358,186 |
| Dana Holding Corp. | 34,850 | 611,269 |
| Delphi Automotive plc | 68,062 | 5,140,042 |
| Dorman Products, Inc. * | 8,200 | 412,870 |
| Drew Industries, Inc. | 4,272 | 236,071 |
| Federal-Mogul Holdings Corp. * | 18,820 | 173,144 |
| Ford Motor Co. | 899,707 | 12,478,936 |
| General Motors Co. | 302,311 | 8,900,036 |
| Gentex Corp. | 62,700 | 971,850 |
| Gentherm, Inc. * | 7,402 | 337,457 |
| Harley-Davidson, Inc. | 49,394 | 2,768,534 |
| Horizon Global Corp. * | 3,503 | 36,641 |
| Johnson Controls, Inc. | 153,903 | 6,331,570 |
| Lear Corp. | 17,568 | 1,805,815 |
| Remy International, Inc. | 11,813 | 346,121 |
| Standard Motor Products, Inc. | 5,068 | 179,407 |
| Tenneco, Inc. * | 12,800 | 602,240 |
| Tesla Motors, Inc. * | 22,037 | 5,488,535 |
| The Goodyear Tire & Rubber Co. | 61,946 | 1,844,132 |
| Thor Industries, Inc. | 10,250 | 559,445 |
| Visteon Corp. * | 10,744 | 1,070,747 |
| 55,911,609 | ||
| Banks 6.2% | ||
| Associated Banc-Corp. | 43,370 | 796,273 |
| Astoria Financial Corp. | 18,479 | 298,805 |
| BancFirst Corp. | 4,115 | 248,834 |
| Security | Number of Shares | Value ($) |
| BancorpSouth, Inc. | 20,770 | 493,495 |
| Bank of America Corp. | 2,382,218 | 38,925,442 |
| Bank of Hawaii Corp. | 10,250 | 636,115 |
| Bank of the Ozarks, Inc. | 16,400 | 685,520 |
| BankUnited, Inc. | 23,075 | 822,393 |
| Banner Corp. | 9,056 | 402,177 |
| BB&T Corp. | 175,083 | 6,464,064 |
| BBCN Bancorp, Inc. | 44,426 | 646,398 |
| Beneficial Bancorp, Inc. * | 20,348 | 253,129 |
| BofI Holding, Inc. * | 2,936 | 340,106 |
| BOK Financial Corp. | 4,694 | 297,036 |
| Boston Private Financial Holdings, Inc. | 16,929 | 201,455 |
| Brookline Bancorp, Inc. | 18,480 | 194,964 |
| Capital Bank Financial Corp., Class A * | 12,616 | 388,194 |
| Capitol Federal Financial, Inc. | 35,462 | 427,317 |
| Cathay General Bancorp | 16,488 | 488,539 |
| Central Pacific Financial Corp. | 8,744 | 181,351 |
| Chemical Financial Corp. | 6,308 | 201,478 |
| CIT Group, Inc. | 47,150 | 2,048,196 |
| Citigroup, Inc. | 690,687 | 36,937,941 |
| Citizens Financial Group, Inc. | 88,036 | 2,185,054 |
| City Holding Co. | 4,100 | 195,242 |
| City National Corp. | 10,250 | 899,745 |
| Columbia Banking System, Inc. | 14,350 | 434,948 |
| Comerica, Inc. | 43,244 | 1,902,736 |
| Commerce Bancshares, Inc. | 20,770 | 930,704 |
| Community Bank System, Inc. | 8,200 | 292,412 |
| Cullen/Frost Bankers, Inc. | 12,800 | 827,648 |
| CVB Financial Corp. | 20,714 | 336,603 |
| Eagle Bancorp, Inc. * | 6,665 | 279,330 |
| East West Bancorp, Inc. | 34,850 | 1,408,288 |
| Essent Group Ltd. * | 9,596 | 257,077 |
| EverBank Financial Corp. | 22,938 | 453,714 |
| F.N.B. Corp. | 44,278 | 556,132 |
| Fifth Third Bancorp | 197,744 | 3,939,060 |
| First BanCorp (Puerto Rico) * | 33,032 | 132,458 |
| First Citizens BancShares, Inc., Class A | 1,547 | 366,917 |
| First Commonwealth Financial Corp. | 26,825 | 237,401 |
| First Financial Bancorp | 28,138 | 518,865 |
| First Financial Bankshares, Inc. (a) | 12,688 | 395,104 |
| First Horizon National Corp. | 55,626 | 808,246 |
| First Interstate BancSystem, Inc., Class A | 8,544 | 227,954 |
| First Merchants Corp. | 10,775 | 280,366 |
| First Midwest Bancorp, Inc. | 20,500 | 361,620 |
| First Niagara Financial Group, Inc. | 78,344 | 724,682 |
| First Republic Bank | 32,909 | 1,984,742 |
| FirstMerit Corp. | 35,629 | 639,897 |
| Flagstar Bancorp, Inc. * | 18,872 | 383,668 |
| Fulton Financial Corp. | 49,520 | 602,163 |
| German American Bancorp, Inc. | 8,300 | 240,534 |
| Glacier Bancorp, Inc. | 14,985 | 389,760 |
| Great Western Bancorp, Inc. | 12,300 | 309,591 |
| Hancock Holding Co. | 18,450 | 518,076 |
| Hanmi Financial Corp. | 9,056 | 219,517 |
| Hilltop Holdings, Inc. * | 15,210 | 314,087 |
| Home BancShares, Inc. | 16,400 | 625,168 |
| Hudson City Bancorp, Inc. | 108,650 | 1,010,445 |
See financial notes 1
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Huntington Bancshares, Inc. | 192,700 | 2,102,357 |
| IBERIABANK Corp. | 8,705 | 530,134 |
| Independent Bank Corp. | 4,372 | 198,008 |
| International Bancshares Corp. | 22,586 | 579,331 |
| Investors Bancorp, Inc. | 76,989 | 906,930 |
| JPMorgan Chase & Co. | 847,778 | 54,342,570 |
| KeyCorp | 197,880 | 2,718,871 |
| Lakeland Bancorp, Inc. | 23,450 | 259,357 |
| Lakeland Financial Corp. | 4,864 | 199,862 |
| LegacyTexas Financial Group, Inc. | 8,344 | 236,302 |
| M&T Bank Corp. | 29,233 | 3,456,510 |
| MB Financial, Inc. | 12,341 | 406,513 |
| MGIC Investment Corp. * | 77,021 | 813,342 |
| National Bank Holdings Corp., Class A | 15,203 | 306,645 |
| National Penn Bancshares, Inc. | 27,228 | 327,144 |
| NBT Bancorp, Inc. | 29,604 | 766,744 |
| New York Community Bancorp, Inc. | 98,706 | 1,743,148 |
| Northfield Bancorp, Inc. | 12,591 | 188,487 |
| Northwest Bancshares, Inc. | 30,750 | 394,830 |
| Ocwen Financial Corp. *(a) | 25,556 | 190,137 |
| Old National Bancorp | 55,354 | 763,885 |
| Oritani Financial Corp. | 14,350 | 216,398 |
| PacWest Bancorp | 27,376 | 1,167,313 |
| Park National Corp. | 5,670 | 477,471 |
| People's United Financial, Inc. | 77,900 | 1,207,450 |
| Pinnacle Financial Partners, Inc. | 6,608 | 313,351 |
| Popular, Inc. * | 22,560 | 662,362 |
| PrivateBancorp, Inc. | 18,450 | 698,332 |
| Prosperity Bancshares, Inc. | 12,621 | 652,127 |
| Provident Financial Services, Inc. | 16,400 | 310,616 |
| Radian Group, Inc. | 49,210 | 884,796 |
| Regions Financial Corp. | 312,330 | 2,995,245 |
| Renasant Corp. | 4,606 | 144,352 |
| S&T Bancorp, Inc. | 6,209 | 185,773 |
| Sandy Spring Bancorp, Inc. | 4,506 | 115,669 |
| Signature Bank * | 11,150 | 1,488,413 |
| Simmons First National Corp., Class A | 4,864 | 213,384 |
| South State Corp. | 5,196 | 390,479 |
| State Bank Financial Corp. | 6,409 | 129,462 |
| Sterling Bancorp | 17,524 | 245,862 |
| Stock Yards Bancorp, Inc. | 12,856 | 453,045 |
| SunTrust Banks, Inc. | 119,456 | 4,822,439 |
| SVB Financial Group * | 11,150 | 1,394,642 |
| Synovus Financial Corp. | 31,251 | 950,968 |
| TCF Financial Corp. | 41,248 | 640,169 |
| Texas Capital Bancshares, Inc. * | 8,448 | 455,009 |
| TFS Financial Corp. | 28,700 | 492,779 |
| The PNC Financial Services Group, Inc. | 121,604 | 11,080,556 |
| TrustCo Bank Corp. | 20,630 | 122,130 |
| Trustmark Corp. | 16,400 | 377,692 |
| U.S. Bancorp | 405,984 | 17,193,422 |
| UMB Financial Corp. | 8,200 | 411,066 |
| Umpqua Holdings Corp. | 46,143 | 771,050 |
| Union Bankshares Corp. | 10,505 | 247,918 |
| United Bankshares, Inc. | 14,733 | 551,309 |
| United Community Banks, Inc. | 10,570 | 206,855 |
| United Financial Bancorp, Inc. | 12,592 | 158,030 |
| Valley National Bancorp | 53,457 | 505,703 |
| Washington Federal, Inc. | 24,600 | 558,174 |
| Security | Number of Shares | Value ($) |
| Webster Financial Corp. | 20,839 | 737,284 |
| Wells Fargo & Co. | 1,066,366 | 56,869,299 |
| WesBanco, Inc. | 13,190 | 406,120 |
| Westamerica Bancorp | 6,150 | 277,611 |
| Western Alliance Bancorp * | 20,614 | 629,139 |
| Wintrust Financial Corp. | 10,250 | 522,750 |
| WSFS Financial Corp. | 7,296 | 200,859 |
| Zions Bancorp | 47,818 | 1,386,722 |
| 304,921,878 | ||
| Capital Goods 7.4% | ||
| 3M Co. | 144,194 | 20,495,735 |
| A.O. Smith Corp. | 16,400 | 1,057,964 |
| AAON, Inc. | 9,621 | 198,962 |
| AAR Corp. | 8,200 | 199,506 |
| Actuant Corp., Class A | 18,450 | 395,568 |
| Acuity Brands, Inc. | 10,250 | 1,997,417 |
| AECOM * | 31,818 | 874,995 |
| Aegion Corp. * | 8,420 | 154,928 |
| Aerojet Rocketdyne Holdings, Inc. * | 12,618 | 259,552 |
| AGCO Corp. | 20,900 | 1,024,936 |
| Air Lease Corp. | 19,559 | 629,213 |
| Aircastle Ltd. | 18,450 | 383,391 |
| Albany International Corp., Class A | 6,448 | 205,691 |
| Allegion plc | 21,032 | 1,253,718 |
| Allison Transmission Holdings, Inc. | 37,576 | 1,074,674 |
| Altra Industrial Motion Corp. | 4,706 | 117,697 |
| Ameresco, Inc., Class A * | 59,932 | 339,814 |
| American Railcar Industries, Inc. (a) | 2,403 | 99,628 |
| AMETEK, Inc. | 55,350 | 2,978,937 |
| Apogee Enterprises, Inc. | 6,209 | 323,799 |
| Applied Industrial Technologies, Inc. | 10,250 | 433,985 |
| Armstrong World Industries, Inc. * | 10,417 | 579,289 |
| Astec Industries, Inc. | 4,236 | 167,364 |
| Astronics Corp. * | 3,403 | 175,799 |
| AZZ, Inc. | 4,472 | 226,283 |
| B/E Aerospace, Inc. | 21,534 | 1,049,782 |
| Babcock & Wilcox Enterprises, Inc. * | 13,305 | 245,477 |
| Barnes Group, Inc. | 10,434 | 403,065 |
| Beacon Roofing Supply, Inc. * | 10,250 | 371,563 |
| Briggs & Stratton Corp. | 10,491 | 209,610 |
| Builders FirstSource, Inc. * | 20,730 | 307,011 |
| BWX Technologies, Inc. | 26,650 | 706,758 |
| Carlisle Cos., Inc. | 14,350 | 1,445,045 |
| Caterpillar, Inc. | 135,467 | 10,355,097 |
| Chart Industries, Inc. * | 11,830 | 302,375 |
| Chicago Bridge & Iron Co. N.V. (a) | 23,154 | 1,025,259 |
| CIRCOR International, Inc. | 4,100 | 185,484 |
| CLARCOR, Inc. | 12,300 | 693,351 |
| Colfax Corp. * | 21,367 | 828,826 |
| Columbus McKinnon Corp. | 15,350 | 291,804 |
| Comfort Systems USA, Inc. | 8,512 | 235,953 |
| Continental Building Products, Inc. * | 16,792 | 335,672 |
| Crane Co. | 12,300 | 646,242 |
| Cubic Corp. | 4,871 | 205,167 |
| Cummins, Inc. | 39,309 | 4,785,871 |
| Curtiss-Wright Corp. | 10,250 | 673,528 |
| Danaher Corp. | 138,804 | 12,078,724 |
| Deere & Co. | 80,442 | 6,578,547 |
| DigitalGlobe, Inc. * | 14,999 | 345,877 |
2 See financial notes
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Donaldson Co., Inc. | 32,800 | 1,026,968 |
| Dover Corp. | 37,628 | 2,331,055 |
| DXP Enterprises, Inc. * | 7,624 | 226,814 |
| Dycom Industries, Inc. * | 6,631 | 471,398 |
| Eaton Corp. plc | 106,637 | 6,084,707 |
| EMCOR Group, Inc. | 14,350 | 661,392 |
| Emerson Electric Co. | 154,381 | 7,367,061 |
| Encore Wire Corp. | 4,571 | 148,420 |
| EnerSys | 10,444 | 558,441 |
| EnPro Industries, Inc. | 4,252 | 201,715 |
| ESCO Technologies, Inc. | 8,200 | 296,102 |
| Esterline Technologies Corp. * | 8,200 | 670,022 |
| Fastenal Co. | 59,891 | 2,308,199 |
| Federal Signal Corp. | 14,396 | 203,703 |
| Flowserve Corp. | 32,883 | 1,484,010 |
| Fluor Corp. | 32,045 | 1,461,893 |
| Fortune Brands Home & Security, Inc. | 35,350 | 1,691,497 |
| Franklin Electric Co., Inc. | 8,294 | 242,931 |
| GATX Corp. | 12,300 | 609,711 |
| Generac Holdings, Inc. * | 14,644 | 452,792 |
| General Cable Corp. | 14,520 | 211,266 |
| General Dynamics Corp. | 70,983 | 10,081,715 |
| General Electric Co. | 2,288,075 | 56,790,021 |
| Gibraltar Industries, Inc. * | 19,450 | 318,786 |
| Graco, Inc. | 14,350 | 990,006 |
| Granite Construction, Inc. | 6,791 | 234,290 |
| Great Lakes Dredge & Dock Corp. * | 12,718 | 70,585 |
| Griffon Corp. | 10,315 | 171,642 |
| H&E Equipment Services, Inc. | 8,298 | 171,852 |
| Harsco Corp. | 22,550 | 260,678 |
| HD Supply Holdings, Inc. * | 34,998 | 1,154,934 |
| HEICO Corp. | 13,142 | 668,928 |
| Hexcel Corp. | 20,956 | 1,011,337 |
| Hillenbrand, Inc. | 16,400 | 442,144 |
| Honeywell International, Inc. | 177,124 | 17,583,099 |
| Hubbell, Inc., Class B | 12,300 | 1,213,641 |
| Huntington Ingalls Industries, Inc. | 12,300 | 1,384,734 |
| Hyster-Yale Materials Handling, Inc. | 2,708 | 164,538 |
| IDEX Corp. | 18,450 | 1,325,263 |
| Illinois Tool Works, Inc. | 82,251 | 6,952,677 |
| Ingersoll-Rand plc | 58,077 | 3,211,077 |
| Insteel Industries, Inc. | 11,350 | 196,469 |
| ITT Corp. | 20,500 | 766,905 |
| Jacobs Engineering Group, Inc. * | 28,700 | 1,159,767 |
| John Bean Technologies Corp. | 6,209 | 205,642 |
| Joy Global, Inc. | 22,763 | 551,320 |
| Kaman Corp. | 6,150 | 238,805 |
| KBR, Inc. | 33,352 | 581,659 |
| Kennametal, Inc. | 18,450 | 562,725 |
| KLX, Inc. * | 10,767 | 420,990 |
| L-3 Communications Holdings, Inc. | 19,478 | 2,054,345 |
| Lennox International, Inc. | 12,300 | 1,451,892 |
| Lincoln Electric Holdings, Inc. | 17,524 | 1,027,783 |
| Lindsay Corp. (a) | 2,271 | 173,118 |
| Lockheed Martin Corp. | 60,675 | 12,206,596 |
| Masco Corp. | 86,100 | 2,258,403 |
| Masonite International Corp. * | 3,128 | 206,604 |
| MasTec, Inc. * | 12,879 | 213,276 |
| Meritor, Inc. * | 23,074 | 291,886 |
| Moog, Inc., Class A * | 12,300 | 776,130 |
| Security | Number of Shares | Value ($) |
| MRC Global, Inc. * | 25,112 | 326,205 |
| MSC Industrial Direct Co., Inc., Class A | 10,250 | 693,823 |
| Mueller Industries, Inc. | 16,570 | 527,092 |
| Mueller Water Products, Inc., Class A | 34,851 | 311,916 |
| Nordson Corp. | 12,300 | 818,196 |
| Nortek, Inc. * | 2,503 | 204,770 |
| Northrop Grumman Corp. | 46,327 | 7,585,583 |
| NOW, Inc. *(a) | 23,616 | 402,889 |
| Orbital ATK, Inc. | 11,974 | 906,552 |
| Oshkosh Corp. | 20,500 | 862,025 |
| Owens Corning | 24,875 | 1,101,714 |
| PACCAR, Inc. | 82,000 | 4,835,540 |
| Parker-Hannifin Corp. | 34,850 | 3,751,951 |
| Pentair plc | 43,584 | 2,409,759 |
| Powell Industries, Inc. | 2,200 | 64,592 |
| Precision Castparts Corp. | 32,800 | 7,552,200 |
| Primoris Services Corp. | 10,648 | 195,604 |
| Proto Labs, Inc. * | 4,393 | 319,942 |
| Quanex Building Products Corp. | 8,244 | 147,980 |
| Quanta Services, Inc. * | 47,403 | 1,149,049 |
| Raven Industries, Inc. | 8,200 | 148,584 |
| Raytheon Co. | 70,562 | 7,236,839 |
| RBC Bearings, Inc. * | 6,150 | 380,439 |
| Regal Beloit Corp. | 10,250 | 683,368 |
| Rexnord Corp. * | 16,800 | 336,840 |
| Rockwell Automation, Inc. | 32,800 | 3,668,024 |
| Rockwell Collins, Inc. | 31,144 | 2,549,136 |
| Roper Technologies, Inc. | 22,550 | 3,655,129 |
| Rush Enterprises, Inc., Class A * | 6,539 | 166,875 |
| Sensata Technologies Holding N.V. * | 37,641 | 1,784,183 |
| Simpson Manufacturing Co., Inc. | 8,734 | 304,904 |
| Snap-on, Inc. | 12,600 | 2,013,102 |
| SolarCity Corp. *(a) | 11,651 | 562,510 |
| Spirit AeroSystems Holdings, Inc., Class A * | 29,451 | 1,505,241 |
| SPX Corp. | 9,134 | 536,440 |
| Standex International Corp. | 2,050 | 164,041 |
| Stanley Black & Decker, Inc. | 35,078 | 3,561,119 |
| Sun Hydraulics Corp. | 4,571 | 147,460 |
| TASER International, Inc. * | 11,140 | 260,676 |
| Teledyne Technologies, Inc. * | 8,247 | 807,464 |
| Tennant Co. | 6,150 | 352,518 |
| Terex Corp. | 26,650 | 621,745 |
| Textron, Inc. | 63,550 | 2,465,740 |
| The Boeing Co. | 148,120 | 19,356,322 |
| The Greenbrier Cos., Inc. (a) | 4,606 | 192,070 |
| The Manitowoc Co., Inc. | 34,850 | 595,238 |
| The Middleby Corp. * | 12,399 | 1,345,911 |
| The Timken Co. | 18,450 | 585,788 |
| The Toro Co. | 12,594 | 897,952 |
| TransDigm Group, Inc. * | 10,779 | 2,477,338 |
| Trex Co., Inc. * | 9,392 | 364,504 |
| TriMas Corp. * | 8,819 | 160,859 |
| Trinity Industries, Inc. | 36,900 | 995,931 |
| Triumph Group, Inc. | 10,552 | 521,163 |
| Tutor Perini Corp. * | 8,808 | 155,902 |
| United Rentals, Inc. * | 22,988 | 1,593,758 |
| United Technologies Corp. | 188,702 | 17,286,990 |
| Universal Forest Products, Inc. | 4,172 | 250,570 |
See financial notes 3
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| USG Corp. * | 18,926 | 577,432 |
| Valmont Industries, Inc. | 5,247 | 557,704 |
| W.W. Grainger, Inc. | 13,173 | 2,943,375 |
| Wabash National Corp. * | 14,621 | 178,815 |
| WABCO Holdings, Inc. * | 14,350 | 1,654,842 |
| Wabtec Corp. | 20,700 | 1,982,232 |
| Watsco, Inc. | 6,150 | 753,129 |
| Watts Water Technologies, Inc., Class A | 6,244 | 342,483 |
| WESCO International, Inc. * | 10,250 | 573,693 |
| Woodward, Inc. | 12,300 | 560,880 |
| Xylem, Inc. | 41,000 | 1,330,450 |
| 364,526,382 | ||
| Commercial & Professional Services 1.1% | ||
| ABM Industries, Inc. | 8,756 | 280,280 |
| Acacia Research Corp. | 27,736 | 264,047 |
| ACCO Brands Corp. * | 25,808 | 196,141 |
| Brady Corp., Class A | 10,250 | 225,090 |
| CEB, Inc. | 6,540 | 468,395 |
| Cintas Corp. | 26,650 | 2,264,983 |
| Civeo Corp. | 101,992 | 198,884 |
| Clean Harbors, Inc. * | 12,300 | 604,176 |
| Copart, Inc. * | 25,040 | 876,901 |
| Covanta Holding Corp. | 30,750 | 608,850 |
| Deluxe Corp. | 12,300 | 713,523 |
| Equifax, Inc. | 28,700 | 2,809,730 |
| Essendant, Inc. | 12,300 | 424,350 |
| Exponent, Inc. | 4,672 | 199,728 |
| FTI Consulting, Inc. * | 8,672 | 345,666 |
| G&K Services, Inc., Class A | 6,150 | 415,802 |
| Healthcare Services Group, Inc. | 16,400 | 548,416 |
| Herman Miller, Inc. | 12,556 | 340,393 |
| HNI Corp. | 12,300 | 574,902 |
| Huron Consulting Group, Inc. * | 5,500 | 398,145 |
| ICF International, Inc. * | 4,306 | 147,308 |
| IHS, Inc., Class A * | 15,157 | 1,758,515 |
| Insperity, Inc. | 6,159 | 273,398 |
| Interface, Inc. | 12,535 | 303,848 |
| KAR Auction Services, Inc. | 31,728 | 1,175,205 |
| Kelly Services, Inc., Class A | 6,609 | 95,500 |
| Kforce, Inc. | 8,312 | 222,678 |
| Knoll, Inc. | 10,427 | 249,414 |
| Korn/Ferry International | 10,320 | 351,602 |
| ManpowerGroup, Inc. | 18,450 | 1,603,305 |
| Matthews International Corp., Class A | 8,200 | 416,396 |
| McGrath RentCorp | 4,502 | 115,476 |
| Mobile Mini, Inc. | 8,200 | 278,882 |
| MSA Safety, Inc. | 6,465 | 294,028 |
| Navigant Consulting, Inc. * | 12,352 | 195,038 |
| Nielsen Holdings plc | 79,037 | 3,574,844 |
| On Assignment, Inc. * | 11,375 | 409,273 |
| Pitney Bowes, Inc. | 47,150 | 934,042 |
| Quad/Graphics, Inc. | 11,095 | 160,212 |
| R.R. Donnelley & Sons Co. | 39,864 | 625,865 |
| Republic Services, Inc. | 63,591 | 2,605,959 |
| Robert Half International, Inc. | 34,850 | 1,778,395 |
| Rollins, Inc. | 24,834 | 693,365 |
| RPX Corp. * | 24,306 | 334,694 |
| Steelcase, Inc., Class A | 16,846 | 296,995 |
| Security | Number of Shares | Value ($) |
| Stericycle, Inc. * | 20,500 | 2,893,370 |
| Team, Inc. * | 6,150 | 257,316 |
| Tetra Tech, Inc. | 12,900 | 335,142 |
| The ADT Corp. | 42,064 | 1,378,858 |
| The Advisory Board Co. * | 8,200 | 398,766 |
| The Brink's Co. | 12,300 | 352,518 |
| The Dun & Bradstreet Corp. | 8,794 | 931,900 |
| Towers Watson & Co., Class A | 14,512 | 1,723,010 |
| TrueBlue, Inc. * | 12,300 | 295,200 |
| Tyco International plc | 104,550 | 3,794,119 |
| UniFirst Corp. | 4,100 | 444,481 |
| US Ecology, Inc. | 5,262 | 262,890 |
| Verisk Analytics, Inc. * | 32,800 | 2,397,024 |
| WageWorks, Inc. * | 6,640 | 297,538 |
| Waste Connections, Inc. | 27,080 | 1,287,925 |
| Waste Management, Inc. | 98,400 | 4,925,904 |
| West Corp. | 14,375 | 349,888 |
| 53,978,488 | ||
| Consumer Durables & Apparel 1.7% | ||
| Arctic Cat, Inc. | 4,100 | 108,363 |
| Beazer Homes USA, Inc. * | 10,915 | 182,281 |
| Brunswick Corp. | 20,500 | 1,019,055 |
| Carter's, Inc. | 12,914 | 1,269,575 |
| Cavco Industries, Inc. * | 2,194 | 156,981 |
| Coach, Inc. | 62,270 | 1,883,667 |
| Columbia Sportswear Co. | 8,200 | 503,234 |
| Crocs, Inc. * | 22,601 | 332,913 |
| D.R. Horton, Inc. | 72,307 | 2,195,964 |
| Deckers Outdoor Corp. * | 6,850 | 441,071 |
| Ethan Allen Interiors, Inc. | 4,672 | 138,992 |
| Fossil Group, Inc. * | 12,300 | 757,434 |
| G-III Apparel Group Ltd. * | 10,379 | 719,576 |
| Garmin Ltd. | 26,650 | 1,002,306 |
| GoPro, Inc., Class A * | 6,503 | 302,975 |
| Hanesbrands, Inc. | 90,200 | 2,715,922 |
| Harman International Industries, Inc. | 16,400 | 1,602,936 |
| Hasbro, Inc. | 26,650 | 1,987,823 |
| Helen of Troy Ltd. * | 8,314 | 707,854 |
| iRobot Corp. * | 4,711 | 138,032 |
| Jarden Corp. * | 44,178 | 2,268,099 |
| Kate Spade & Co. * | 24,841 | 470,985 |
| KB Home | 16,694 | 244,567 |
| La-Z-Boy, Inc. | 12,834 | 354,347 |
| Leggett & Platt, Inc. | 31,091 | 1,381,062 |
| Lennar Corp., Class A | 40,734 | 2,073,361 |
| LGI Homes, Inc. * | 6,376 | 166,031 |
| Libbey, Inc. | 6,582 | 231,950 |
| lululemon athletica, Inc. * | 23,375 | 1,496,234 |
| M.D.C Holdings, Inc. | 10,250 | 292,022 |
| Mattel, Inc. | 80,614 | 1,888,786 |
| Meritage Homes Corp. * | 6,459 | 272,182 |
| Michael Kors Holdings Ltd. * | 45,856 | 1,992,902 |
| Mohawk Industries, Inc. * | 14,514 | 2,858,823 |
| Movado Group, Inc. | 4,372 | 123,771 |
| NACCO Industries, Inc., Class A | 2,050 | 107,912 |
| Newell Rubbermaid, Inc. | 65,600 | 2,763,728 |
| NIKE, Inc., Class B | 159,008 | 17,769,144 |
| NVR, Inc. * | 848 | 1,288,918 |
| Oxford Industries, Inc. | 4,102 | 345,224 |
4 See financial notes
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Polaris Industries, Inc. | 14,464 | 1,878,440 |
| PulteGroup, Inc. | 77,900 | 1,611,751 |
| PVH Corp. | 18,833 | 2,240,750 |
| Ralph Lauren Corp. | 14,350 | 1,595,576 |
| Skechers U.S.A., Inc., Class A * | 8,444 | 1,188,409 |
| Smith & Wesson Holding Corp. * | 15,182 | 274,491 |
| Standard Pacific Corp. * | 36,937 | 312,118 |
| Steven Madden Ltd. * | 14,913 | 609,345 |
| Sturm Ruger & Co., Inc. | 4,153 | 261,182 |
| Taylor Morrison Home Corp., Class A * | 6,940 | 138,453 |
| Tempur Sealy International, Inc. * | 14,350 | 1,047,837 |
| The Ryland Group, Inc. | 8,670 | 374,891 |
| Toll Brothers, Inc. * | 34,850 | 1,288,404 |
| TopBuild Corp. * | 9,540 | 302,609 |
| TRI Pointe Group, Inc. * | 27,527 | 382,075 |
| Tumi Holdings, Inc. * | 14,428 | 284,520 |
| Tupperware Brands Corp. | 10,978 | 562,403 |
| Under Armour, Inc., Class A * | 41,044 | 3,920,933 |
| Universal Electronics, Inc. * | 2,393 | 109,097 |
| VF Corp. | 79,154 | 5,733,124 |
| Vista Outdoor, Inc. * | 13,100 | 612,556 |
| Whirlpool Corp. | 18,300 | 3,076,230 |
| Wolverine World Wide, Inc. | 24,600 | 662,970 |
| 85,025,166 | ||
| Consumer Services 2.3% | ||
| American Public Education, Inc. * | 4,102 | 89,957 |
| Aramark | 47,731 | 1,495,890 |
| Belmond Ltd., Class A * | 20,500 | 233,085 |
| BJ's Restaurants, Inc. * | 5,076 | 218,217 |
| Bloomin' Brands, Inc. | 16,752 | 346,766 |
| Bob Evans Farms, Inc. | 6,285 | 284,019 |
| Boyd Gaming Corp. * | 10,997 | 177,052 |
| Bright Horizons Family Solutions, Inc. * | 8,920 | 545,190 |
| Brinker International, Inc. | 16,895 | 897,631 |
| Buffalo Wild Wings, Inc. * | 4,114 | 780,344 |
| Carnival Corp. | 100,539 | 4,949,535 |
| Chipotle Mexican Grill, Inc. * | 6,986 | 4,960,130 |
| Choice Hotels International, Inc. | 9,319 | 475,269 |
| Churchill Downs, Inc. | 4,575 | 607,880 |
| ClubCorp Holdings, Inc. | 13,300 | 299,383 |
| Cracker Barrel Old Country Store, Inc. (a) | 6,150 | 886,707 |
| Darden Restaurants, Inc. | 30,750 | 2,091,307 |
| Denny's Corp. * | 20,730 | 232,798 |
| DeVry Education Group, Inc. | 12,880 | 336,941 |
| Diamond Resorts International, Inc. * | 11,160 | 283,352 |
| DineEquity, Inc. | 4,635 | 442,643 |
| Domino's Pizza, Inc. | 12,450 | 1,318,953 |
| Dunkin' Brands Group, Inc. | 23,251 | 1,166,270 |
| Extended Stay America, Inc. | 12,330 | 231,434 |
| Fiesta Restaurant Group, Inc. * | 4,742 | 244,877 |
| Graham Holdings Co., Class B | 1,012 | 669,499 |
| Grand Canyon Education, Inc. * | 10,454 | 386,380 |
| H&R Block, Inc. | 65,770 | 2,237,495 |
| Hilton Worldwide Holdings, Inc. | 119,315 | 2,962,591 |
| Houghton Mifflin Harcourt Co. * | 23,918 | 540,068 |
| Hyatt Hotels Corp., Class A * | 12,406 | 635,559 |
| Security | Number of Shares | Value ($) |
| International Speedway Corp., Class A | 6,292 | 201,910 |
| Interval Leisure Group, Inc. | 10,443 | 209,487 |
| Jack in the Box, Inc. | 8,756 | 684,544 |
| K12, Inc. * | 15,256 | 201,684 |
| Krispy Kreme Doughnuts, Inc. * | 14,521 | 248,890 |
| La Quinta Holdings, Inc. * | 21,180 | 399,243 |
| Las Vegas Sands Corp. | 86,673 | 4,006,893 |
| Marriott International, Inc., Class A | 49,972 | 3,531,022 |
| Marriott Vacations Worldwide Corp. | 6,352 | 451,056 |
| McDonald's Corp. | 220,009 | 20,905,255 |
| MGM Resorts International * | 96,940 | 1,980,484 |
| Norwegian Cruise Line Holdings Ltd. * | 31,677 | 1,824,595 |
| Panera Bread Co., Class A * | 6,264 | 1,116,871 |
| Papa John's International, Inc. | 8,456 | 568,666 |
| Penn National Gaming, Inc. * | 14,550 | 264,228 |
| Pinnacle Entertainment, Inc. * | 12,899 | 487,195 |
| Popeyes Louisiana Kitchen, Inc. * | 6,150 | 342,063 |
| Red Robin Gourmet Burgers, Inc. * | 5,008 | 394,580 |
| Regis Corp. * | 12,556 | 136,107 |
| Royal Caribbean Cruises Ltd. | 35,822 | 3,158,068 |
| Scientific Games Corp., Class A *(a) | 19,650 | 216,543 |
| SeaWorld Entertainment, Inc. | 15,024 | 267,427 |
| Service Corp. International | 47,585 | 1,410,895 |
| ServiceMaster Global Holdings, Inc. * | 18,920 | 665,606 |
| Six Flags Entertainment Corp. | 24,606 | 1,106,532 |
| Sonic Corp. | 14,350 | 387,450 |
| Sotheby's | 14,446 | 508,644 |
| Starbucks Corp. | 341,234 | 18,668,912 |
| Starwood Hotels & Resorts Worldwide, Inc. | 43,450 | 3,105,371 |
| Texas Roadhouse, Inc. | 14,350 | 516,457 |
| The Cheesecake Factory, Inc. | 10,692 | 580,255 |
| The Wendy's Co. | 84,050 | 765,696 |
| Vail Resorts, Inc. | 8,200 | 884,862 |
| Wyndham Worldwide Corp. | 31,144 | 2,381,893 |
| Wynn Resorts Ltd. | 18,450 | 1,384,673 |
| Yum! Brands, Inc. | 102,547 | 8,180,174 |
| Zoe's Kitchen, Inc. *(a) | 7,516 | 259,603 |
| 113,431,056 | ||
| Diversified Financials 4.7% | ||
| Affiliated Managers Group, Inc. * | 12,300 | 2,293,212 |
| Ally Financial, Inc. * | 96,777 | 2,115,545 |
| American Express Co. | 200,239 | 15,362,336 |
| Ameriprise Financial, Inc. | 43,119 | 4,858,218 |
| Artisan Partners Asset Management, Inc., Class A | 7,113 | 290,708 |
| Berkshire Hathaway, Inc., Class B * | 415,788 | 55,732,224 |
| BGC Partners, Inc., Class A | 27,168 | 238,263 |
| BlackRock, Inc. | 28,837 | 8,722,327 |
| Capital One Financial Corp. | 127,124 | 9,883,891 |
| Cash America International, Inc. | 6,293 | 173,687 |
| CBOE Holdings, Inc. | 22,592 | 1,429,170 |
| CME Group, Inc. | 71,830 | 6,783,625 |
| Cohen & Steers, Inc. | 6,150 | 184,377 |
| Credit Acceptance Corp. * | 2,050 | 417,811 |
| Discover Financial Services | 105,124 | 5,648,313 |
See financial notes 5
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| E*TRADE Financial Corp. * | 63,998 | 1,682,507 |
| Eaton Vance Corp. | 26,650 | 923,955 |
| Encore Capital Group, Inc. *(a) | 4,372 | 177,634 |
| Evercore Partners, Inc., Class A | 9,170 | 480,325 |
| Federated Investors, Inc., Class B | 24,600 | 762,600 |
| Financial Engines, Inc. | 10,250 | 332,715 |
| First Cash Financial Services, Inc. * | 6,165 | 254,430 |
| FNFV Group * | 20,534 | 297,127 |
| Franklin Resources, Inc. | 88,636 | 3,596,849 |
| GAMCO Investors, Inc., Class A | 2,522 | 147,537 |
| Greenhill & Co., Inc. | 4,694 | 164,806 |
| HFF, Inc., Class A | 10,250 | 372,383 |
| Interactive Brokers Group, Inc., Class A | 14,941 | 596,445 |
| Intercontinental Exchange, Inc. | 25,251 | 5,767,581 |
| Invesco Ltd. | 97,418 | 3,322,928 |
| Investment Technology Group, Inc. | 8,744 | 143,576 |
| Janus Capital Group, Inc. | 41,000 | 610,080 |
| KCG Holdings, Inc., Class A * | 21,452 | 246,698 |
| Lazard Ltd., Class A | 30,814 | 1,532,380 |
| Legg Mason, Inc. | 23,543 | 1,043,661 |
| LendingClub Corp. * | 15,656 | 196,483 |
| Leucadia National Corp. | 66,097 | 1,418,442 |
| LPL Financial Holdings, Inc. (a) | 17,563 | 706,384 |
| MarketAxess Holdings, Inc. | 9,660 | 873,457 |
| McGraw Hill Financial, Inc. | 63,550 | 6,163,714 |
| Moody's Corp. | 43,244 | 4,424,294 |
| Morgan Stanley | 354,666 | 12,218,244 |
| MSCI, Inc. | 28,700 | 1,736,924 |
| Navient Corp. | 99,224 | 1,269,075 |
| Nelnet, Inc., Class A | 6,226 | 234,409 |
| NewStar Financial, Inc. * | 10,385 | 118,285 |
| Northern Trust Corp. | 49,200 | 3,436,128 |
| NorthStar Asset Management Group, Inc. | 41,349 | 694,663 |
| PHH Corp. * | 12,488 | 202,306 |
| PICO Holdings, Inc. * | 4,400 | 56,980 |
| Piper Jaffray Cos. * | 6,555 | 274,392 |
| PRA Group, Inc. * | 12,300 | 655,467 |
| Raymond James Financial, Inc. | 27,314 | 1,447,369 |
| Santander Consumer USA Holdings, Inc. * | 19,691 | 442,260 |
| SEI Investments Co. | 29,288 | 1,481,387 |
| SLM Corp. * | 99,224 | 841,420 |
| Springleaf Holdings, Inc. * | 14,811 | 662,940 |
| State Street Corp. | 95,108 | 6,840,167 |
| Stifel Financial Corp. * | 12,975 | 604,635 |
| Synchrony Financial * | 26,994 | 889,452 |
| T. Rowe Price Group, Inc. | 57,400 | 4,125,912 |
| TD Ameritrade Holding Corp. | 60,914 | 2,038,182 |
| The Bank of New York Mellon Corp. | 254,792 | 10,140,722 |
| The Charles Schwab Corp. (b) | 263,047 | 7,991,368 |
| The Goldman Sachs Group, Inc. | 91,155 | 17,191,833 |
| The NASDAQ OMX Group, Inc. | 26,738 | 1,368,718 |
| Virtus Investment Partners, Inc. | 1,097 | 126,221 |
| Voya Financial, Inc. | 51,431 | 2,215,647 |
| Waddell & Reed Financial, Inc., Class A | 18,750 | 732,563 |
| Security | Number of Shares | Value ($) |
| Walter Investment Management Corp. *(a) | 16,564 | 272,312 |
| WisdomTree Investments, Inc. | 24,600 | 461,250 |
| 231,143,929 | ||
| Energy 6.6% | ||
| Anadarko Petroleum Corp. | 113,750 | 8,142,225 |
| Antero Resources Corp. *(a) | 15,320 | 395,869 |
| Apache Corp. | 88,753 | 4,015,186 |
| Atwood Oceanics, Inc. | 11,660 | 222,823 |
| Baker Hughes, Inc. | 98,400 | 5,510,400 |
| Basic Energy Services, Inc. * | 12,924 | 67,334 |
| Bill Barrett Corp. *(a) | 30,820 | 168,585 |
| Bristow Group, Inc. | 8,472 | 313,972 |
| Cabot Oil & Gas Corp. | 98,400 | 2,329,128 |
| Cameron International Corp. * | 48,185 | 3,216,831 |
| CARBO Ceramics, Inc. (a) | 7,438 | 203,950 |
| Carrizo Oil & Gas, Inc. * | 8,200 | 298,726 |
| Cheniere Energy, Inc. * | 51,846 | 3,222,229 |
| Chevron Corp. | 428,954 | 34,740,984 |
| Cimarex Energy Co. | 20,500 | 2,265,455 |
| Clean Energy Fuels Corp. *(a) | 51,600 | 274,512 |
| Cobalt International Energy, Inc. * | 81,008 | 648,874 |
| Columbia Pipeline Group, Inc. | 75,693 | 1,919,574 |
| Comstock Resources, Inc. (a) | 71,272 | 217,380 |
| Concho Resources, Inc. * | 28,575 | 3,090,672 |
| ConocoPhillips | 281,562 | 13,838,772 |
| Continental Resources, Inc. * | 20,778 | 666,974 |
| Core Laboratories N.V. (a) | 10,270 | 1,188,034 |
| CVR Energy, Inc. | 4,100 | 164,861 |
| Delek US Holdings, Inc. | 12,315 | 378,809 |
| Denbury Resources, Inc. | 89,796 | 389,715 |
| Devon Energy Corp. | 88,638 | 3,781,297 |
| Diamond Offshore Drilling, Inc. (a) | 19,354 | 458,883 |
| Diamondback Energy, Inc. * | 14,714 | 1,004,819 |
| Dril-Quip, Inc. * | 9,147 | 630,594 |
| Energen Corp. | 16,400 | 852,800 |
| Ensco plc, Class A | 47,891 | 867,306 |
| EOG Resources, Inc. | 123,000 | 9,632,130 |
| EQT Corp. | 34,850 | 2,712,027 |
| Era Group, Inc. * | 4,100 | 69,290 |
| Evolution Petroleum Corp. | 47,484 | 278,731 |
| Exterran Holdings, Inc. | 14,378 | 320,917 |
| Exxon Mobil Corp. | 955,962 | 71,926,581 |
| FMC Technologies, Inc. * | 53,488 | 1,860,313 |
| Forum Energy Technologies, Inc. * | 12,932 | 203,291 |
| Frank's International N.V. (a) | 19,472 | 317,588 |
| Geospace Technologies Corp. * | 16,664 | 295,119 |
| Green Plains, Inc. | 7,165 | 152,328 |
| Gulfport Energy Corp. * | 25,385 | 909,545 |
| Halcon Resources Corp. *(a) | 180,604 | 207,695 |
| Halliburton Co. | 195,429 | 7,690,131 |
| Helmerich & Payne, Inc. | 23,750 | 1,401,487 |
| Hess Corp. | 61,601 | 3,662,179 |
| HollyFrontier Corp. | 45,599 | 2,136,769 |
| Hornbeck Offshore Services, Inc. *(a) | 11,960 | 236,210 |
| Kinder Morgan, Inc. | 396,798 | 12,860,223 |
| Kosmos Energy Ltd. * | 21,360 | 149,520 |
| Laredo Petroleum, Inc. *(a) | 25,652 | 261,394 |
| Marathon Oil Corp. | 152,260 | 2,632,575 |
6 See financial notes
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Marathon Petroleum Corp. | 126,392 | 5,979,606 |
| Matador Resources Co. * | 28,245 | 647,093 |
| Matrix Service Co. * | 23,388 | 467,760 |
| McDermott International, Inc. * | 109,824 | 557,906 |
| Memorial Resource Development Corp. * | 13,228 | 256,755 |
| Murphy Oil Corp. | 37,436 | 1,160,516 |
| Nabors Industries Ltd. | 96,362 | 1,112,017 |
| National Oilwell Varco, Inc. | 98,688 | 4,177,463 |
| Natural Gas Services Group, Inc. * | 5,704 | 123,720 |
| Newfield Exploration Co. * | 37,356 | 1,244,328 |
| Newpark Resources, Inc. * | 20,530 | 150,485 |
| Noble Corp. plc | 42,020 | 547,100 |
| Noble Energy, Inc. | 98,506 | 3,291,085 |
| Northern Oil & Gas, Inc. *(a) | 38,744 | 233,626 |
| Oasis Petroleum, Inc. *(a) | 26,698 | 297,950 |
| Occidental Petroleum Corp. | 177,231 | 12,939,635 |
| Oceaneering International, Inc. | 24,600 | 1,077,972 |
| Oil States International, Inc. * | 12,300 | 348,951 |
| ONEOK, Inc. | 46,200 | 1,663,662 |
| Parsley Energy, Inc., Class A * | 13,228 | 227,522 |
| Patterson-UTI Energy, Inc. | 36,900 | 600,732 |
| PBF Energy, Inc., Class A | 20,592 | 616,113 |
| PDC Energy, Inc. * | 8,200 | 460,676 |
| PHI, Inc. * | 4,324 | 109,657 |
| Phillips 66 | 127,640 | 10,092,495 |
| Pioneer Energy Services Corp. * | 55,816 | 184,751 |
| Pioneer Natural Resources Co. | 33,698 | 4,146,876 |
| QEP Resources, Inc. | 46,100 | 647,244 |
| Range Resources Corp. | 36,900 | 1,425,078 |
| Rice Energy, Inc. * | 14,132 | 274,867 |
| RigNet, Inc. * | 3,252 | 93,755 |
| Rowan Cos. plc, Class A | 24,392 | 438,324 |
| RPC, Inc. | 43,934 | 510,513 |
| RSP Permian, Inc. * | 8,732 | 209,044 |
| Sanchez Energy Corp. *(a) | 21,780 | 140,263 |
| Schlumberger Ltd. | 288,280 | 22,304,224 |
| SEACOR Holdings, Inc. * | 4,100 | 264,491 |
| SemGroup Corp., Class A | 10,250 | 563,750 |
| SM Energy Co. | 14,350 | 526,645 |
| Southwestern Energy Co. * | 89,015 | 1,445,604 |
| Spectra Energy Corp. | 154,680 | 4,496,548 |
| Superior Energy Services, Inc. | 35,150 | 559,237 |
| Synergy Resources Corp. * | 19,842 | 213,103 |
| Targa Resources Corp. | 11,226 | 741,590 |
| Teekay Corp. | 8,446 | 310,475 |
| Tesco Corp. | 7,420 | 62,996 |
| Tesoro Corp. | 29,656 | 2,728,649 |
| The Williams Cos., Inc. | 151,753 | 7,314,495 |
| Tidewater, Inc. (a) | 12,432 | 222,906 |
| Transocean Ltd. (a) | 72,145 | 1,026,623 |
| Ultra Petroleum Corp. *(a) | 35,850 | 305,442 |
| Unit Corp. * | 9,188 | 139,658 |
| US Silica Holdings, Inc. (a) | 11,555 | 232,256 |
| Valero Energy Corp. | 119,948 | 7,117,714 |
| W&T Offshore, Inc. (a) | 52,400 | 187,068 |
| Weatherford International plc * | 170,150 | 1,727,022 |
| Western Refining, Inc. | 14,350 | 617,337 |
| World Fuel Services Corp. | 16,400 | 633,860 |
| WPX Energy, Inc. * | 51,900 | 379,389 |
| 325,980,238 |
| Security | Number of Shares | Value ($) |
| Food & Staples Retailing 2.1% | ||
| Casey's General Stores, Inc. | 8,312 | 879,908 |
| Costco Wholesale Corp. | 99,900 | 13,990,995 |
| CVS Health Corp. | 258,064 | 26,425,754 |
| PriceSmart, Inc. | 4,100 | 348,541 |
| Rite Aid Corp. * | 201,257 | 1,660,370 |
| SpartanNash Co. | 18,584 | 525,927 |
| Sprouts Farmers Market, Inc. * | 42,003 | 855,601 |
| SUPERVALU, Inc. * | 47,269 | 389,497 |
| Sysco Corp. | 133,250 | 5,312,677 |
| The Andersons, Inc. | 6,550 | 231,739 |
| The Fresh Market, Inc. * | 8,500 | 183,005 |
| The Kroger Co. | 225,788 | 7,789,686 |
| United Natural Foods, Inc. * | 11,250 | 541,688 |
| Wal-Mart Stores, Inc. | 358,863 | 23,229,202 |
| Walgreens Boots Alliance, Inc. | 199,163 | 17,237,558 |
| Weis Markets, Inc. | 4,100 | 166,665 |
| Whole Foods Market, Inc. | 82,942 | 2,717,180 |
| 102,485,993 | ||
| Food, Beverage & Tobacco 4.7% | ||
| Altria Group, Inc. | 451,453 | 24,188,852 |
| Archer-Daniels-Midland Co. | 141,545 | 6,368,110 |
| B&G Foods, Inc. | 12,300 | 373,797 |
| Boulder Brands, Inc. *(a) | 10,250 | 84,050 |
| Brown-Forman Corp., Class B | 35,787 | 3,510,705 |
| Bunge Ltd. | 32,800 | 2,376,360 |
| Cal-Maine Foods, Inc. (a) | 4,806 | 255,295 |
| Campbell Soup Co. | 39,538 | 1,897,429 |
| Coca-Cola Enterprises, Inc. | 52,289 | 2,692,361 |
| ConAgra Foods, Inc. | 98,820 | 4,118,818 |
| Constellation Brands, Inc., Class A | 39,352 | 5,037,056 |
| Darling Ingredients, Inc. * | 37,855 | 486,058 |
| Dean Foods Co. | 20,653 | 339,948 |
| Diamond Foods, Inc. * | 8,200 | 247,394 |
| Dr. Pepper Snapple Group, Inc. | 43,901 | 3,368,524 |
| Flowers Foods, Inc. | 37,632 | 873,439 |
| Fresh Del Monte Produce, Inc. | 10,250 | 405,797 |
| General Mills, Inc. | 138,265 | 7,847,921 |
| Hormel Foods Corp. | 32,800 | 2,004,080 |
| Ingredion, Inc. | 18,450 | 1,592,973 |
| J&J Snack Foods Corp. | 5,157 | 587,692 |
| Kellogg Co. | 57,926 | 3,839,335 |
| Keurig Green Mountain, Inc. | 27,115 | 1,534,709 |
| Lancaster Colony Corp. | 4,112 | 389,941 |
| McCormick & Co., Inc. Non-Voting Shares | 29,100 | 2,307,048 |
| Mead Johnson Nutrition Co. | 45,412 | 3,557,576 |
| Molson Coors Brewing Co., Class B | 34,850 | 2,372,936 |
| Mondelez International, Inc., Class A | 375,096 | 15,889,067 |
| Monster Beverage Corp. * | 33,846 | 4,686,317 |
| PepsiCo, Inc. | 334,920 | 31,124,116 |
| Philip Morris International, Inc. | 352,061 | 28,094,468 |
| Pilgrim's Pride Corp. (a) | 18,827 | 394,896 |
| Pinnacle Foods, Inc. | 20,833 | 934,152 |
| Post Holdings, Inc. * | 14,063 | 918,033 |
| Reynolds American, Inc. | 94,659 | 7,927,691 |
| Sanderson Farms, Inc. (a) | 4,214 | 290,935 |
| Seaboard Corp. * | 76 | 252,338 |
See financial notes 7
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Snyder's-Lance, Inc. | 12,300 | 415,371 |
| The Boston Beer Co., Inc., Class A * | 2,050 | 420,393 |
| The Coca-Cola Co. | 894,300 | 35,163,876 |
| The Hain Celestial Group, Inc. * | 22,929 | 1,395,459 |
| The Hershey Co. | 34,850 | 3,119,772 |
| The J.M. Smucker Co. | 22,909 | 2,696,847 |
| The Kraft Heinz Co. | 133,417 | 9,694,079 |
| The WhiteWave Foods Co. * | 38,986 | 1,798,814 |
| Tootsie Roll Industries, Inc. (a) | 6,591 | 204,848 |
| TreeHouse Foods, Inc. * | 11,341 | 900,135 |
| Tyson Foods, Inc., Class A | 63,550 | 2,686,894 |
| Universal Corp. | 6,150 | 302,641 |
| Vector Group Ltd. | 20,154 | 480,270 |
| 232,449,616 | ||
| Health Care Equipment & Services 5.2% | ||
| Abaxis, Inc. | 4,711 | 221,511 |
| Abbott Laboratories | 339,378 | 15,370,430 |
| ABIOMED, Inc. * | 6,615 | 634,378 |
| Acadia Healthcare Co., Inc. * | 10,279 | 750,675 |
| Aetna, Inc. | 80,837 | 9,257,453 |
| Air Methods Corp. * | 6,492 | 243,125 |
| Alere, Inc. * | 18,450 | 958,846 |
| Align Technology, Inc. * | 14,945 | 845,887 |
| Allscripts Healthcare Solutions, Inc. * | 43,050 | 592,799 |
| Amedisys, Inc. * | 11,030 | 426,199 |
| AmerisourceBergen Corp. | 51,938 | 5,195,878 |
| AMN Healthcare Services, Inc. * | 15,350 | 515,760 |
| Amsurg Corp. * | 9,463 | 742,088 |
| Analogic Corp. | 2,254 | 181,627 |
| Anthem, Inc. | 63,624 | 8,974,165 |
| athenahealth, Inc. * | 8,200 | 1,090,354 |
| Baxter International, Inc. | 125,050 | 4,808,172 |
| Becton Dickinson & Co. | 47,312 | 6,671,938 |
| Boston Scientific Corp. * | 319,917 | 5,355,411 |
| Brookdale Senior Living, Inc. * | 39,704 | 1,088,684 |
| C.R. Bard, Inc. | 16,761 | 3,248,114 |
| Cantel Medical Corp. | 8,753 | 434,411 |
| Cardinal Health, Inc. | 76,144 | 6,264,367 |
| Cardiovascular Systems, Inc. * | 6,163 | 148,405 |
| Centene Corp. * | 24,600 | 1,518,312 |
| Cerner Corp. * | 68,332 | 4,220,184 |
| Chemed Corp. | 4,147 | 565,443 |
| Cigna Corp. | 60,295 | 8,488,933 |
| Community Health Systems, Inc. * | 26,667 | 1,432,018 |
| Computer Programs & Systems, Inc. | 2,247 | 103,407 |
| CONMED Corp. | 6,187 | 328,282 |
| Cyberonics, Inc. * | 4,494 | 293,638 |
| Cynosure, Inc., Class A * | 9,388 | 297,036 |
| DaVita HealthCare Partners, Inc. * | 39,899 | 3,017,960 |
| DENTSPLY International, Inc. | 32,800 | 1,719,048 |
| DexCom, Inc. * | 18,450 | 1,736,883 |
| Diplomat Pharmacy, Inc. * | 8,988 | 354,936 |
| Edwards Lifesciences Corp. * | 26,650 | 3,754,452 |
| Endologix, Inc. * | 12,421 | 161,225 |
| Envision Healthcare Holdings, Inc. * | 44,617 | 1,827,958 |
| ExamWorks Group, Inc. * | 5,242 | 187,768 |
| Express Scripts Holding Co. * | 155,593 | 13,007,575 |
| Globus Medical, Inc., Class A * | 12,829 | 313,284 |
| Security | Number of Shares | Value ($) |
| Greatbatch, Inc. * | 4,506 | 256,031 |
| Haemonetics Corp. * | 12,300 | 444,153 |
| Halyard Health, Inc. * | 10,549 | 331,661 |
| Hanger, Inc. * | 6,683 | 119,826 |
| HCA Holdings, Inc. * | 70,051 | 6,067,818 |
| Health Net, Inc. * | 22,550 | 1,444,553 |
| HealthEquity, Inc. * | 11,560 | 338,939 |
| HealthSouth Corp. | 20,500 | 875,350 |
| HealthStream, Inc. * | 8,692 | 215,996 |
| HeartWare International, Inc. * | 2,580 | 220,848 |
| Henry Schein, Inc. * | 20,500 | 2,804,605 |
| Hill-Rom Holdings, Inc. | 14,350 | 758,254 |
| Hologic, Inc. * | 64,065 | 2,486,363 |
| Humana, Inc. | 34,862 | 6,372,425 |
| ICU Medical, Inc. * | 2,236 | 253,831 |
| IDEXX Laboratories, Inc. * | 24,628 | 1,760,163 |
| IMS Health Holdings, Inc. * | 27,463 | 820,320 |
| Insulet Corp. * | 10,250 | 304,528 |
| Integra LifeSciences Holdings Corp. * | 6,164 | 369,717 |
| Intuitive Surgical, Inc. * | 8,292 | 4,236,797 |
| Invacare Corp. | 22,650 | 398,414 |
| IPC Healthcare, Inc. * | 4,100 | 325,540 |
| Kindred Healthcare, Inc. | 20,500 | 411,640 |
| Laboratory Corp. of America Holdings * | 22,844 | 2,691,252 |
| LifePoint Health, Inc. * | 12,300 | 960,999 |
| Magellan Health, Inc. * | 8,200 | 459,200 |
| Masimo Corp. * | 12,300 | 499,749 |
| McKesson Corp. | 53,300 | 10,531,014 |
| MedAssets, Inc. * | 12,326 | 260,325 |
| Medidata Solutions, Inc. * | 11,854 | 569,229 |
| MEDNAX, Inc. * | 21,100 | 1,699,605 |
| Medtronic plc | 324,062 | 23,426,442 |
| Meridian Bioscience, Inc. | 14,350 | 274,516 |
| Merit Medical Systems, Inc. * | 10,250 | 233,188 |
| Molina Healthcare, Inc. * | 6,339 | 472,826 |
| National HealthCare Corp. | 2,103 | 126,937 |
| Natus Medical, Inc. * | 6,707 | 272,841 |
| Neogen Corp. * | 8,790 | 453,916 |
| NuVasive, Inc. * | 10,437 | 550,239 |
| NxStage Medical, Inc. * | 12,726 | 221,051 |
| Omnicell, Inc. * | 6,509 | 221,176 |
| Owens & Minor, Inc. | 14,350 | 487,757 |
| Patterson Cos., Inc. | 18,644 | 854,455 |
| PharMerica Corp. * | 10,815 | 353,867 |
| Premier, Inc., Class A * | 8,276 | 295,039 |
| Quest Diagnostics, Inc. | 35,150 | 2,383,170 |
| Quidel Corp. * | 6,739 | 138,756 |
| ResMed, Inc. | 32,800 | 1,703,632 |
| SeaSpine Holdings Corp. * | 2,054 | 29,023 |
| Select Medical Holdings Corp. | 18,762 | 242,030 |
| Sirona Dental Systems, Inc. * | 12,375 | 1,180,327 |
| St. Jude Medical, Inc. | 66,411 | 4,702,563 |
| STERIS Corp. | 12,300 | 787,815 |
| Stryker Corp. | 66,655 | 6,575,516 |
| Team Health Holdings, Inc. * | 14,878 | 873,934 |
| Teleflex, Inc. | 10,250 | 1,340,700 |
| Tenet Healthcare Corp. * | 21,558 | 1,061,300 |
| The Cooper Cos., Inc. | 10,250 | 1,664,805 |
| The Ensign Group, Inc. | 6,150 | 288,743 |
| The Spectranetics Corp. * | 8,984 | 151,380 |
8 See financial notes
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Thoratec Corp. * | 12,300 | 772,686 |
| Tornier N.V. * | 8,372 | 186,193 |
| UnitedHealth Group, Inc. | 218,500 | 25,280,450 |
| Universal American Corp. * | 18,450 | 131,918 |
| Universal Health Services, Inc., Class B | 20,500 | 2,811,370 |
| Varian Medical Systems, Inc. * | 24,805 | 2,015,406 |
| VCA, Inc. * | 18,450 | 1,021,761 |
| Veeva Systems, Inc., Class A * | 7,722 | 200,000 |
| WellCare Health Plans, Inc. * | 10,250 | 929,367 |
| West Pharmaceutical Services, Inc. | 16,400 | 915,940 |
| Wright Medical Group, Inc. * | 12,300 | 283,761 |
| Zeltiq Aesthetics, Inc. * | 8,684 | 280,233 |
| Zimmer Biomet Holdings, Inc. | 39,097 | 4,048,885 |
| 256,884,078 | ||
| Household & Personal Products 1.7% | ||
| Avon Products, Inc. | 112,775 | 585,302 |
| Church & Dwight Co., Inc. | 32,800 | 2,829,984 |
| Colgate-Palmolive Co. | 196,051 | 12,313,963 |
| Coty, Inc., Class A * | 19,120 | 579,527 |
| Edgewell Personal Care Co. | 14,464 | 1,273,700 |
| Energizer Holdings, Inc. | 14,464 | 604,016 |
| Herbalife Ltd. *(a) | 18,706 | 1,076,904 |
| HRG Group, Inc. * | 34,078 | 438,925 |
| Kimberly-Clark Corp. | 84,824 | 9,036,301 |
| Nu Skin Enterprises, Inc., Class A | 14,350 | 655,508 |
| Revlon, Inc., Class A * | 6,509 | 217,010 |
| Spectrum Brands Holdings, Inc. | 4,542 | 446,388 |
| The Clorox Co. | 28,847 | 3,206,921 |
| The Estee Lauder Cos., Inc., Class A | 50,618 | 4,037,798 |
| The Procter & Gamble Co. | 615,779 | 43,517,102 |
| WD-40 Co. | 2,478 | 207,508 |
| 81,026,857 | ||
| Insurance 3.1% | ||
| ACE Ltd. | 76,050 | 7,769,268 |
| Aflac, Inc. | 103,528 | 6,066,741 |
| Alleghany Corp. * | 3,189 | 1,498,160 |
| Allied World Assurance Co. Holdings AG | 24,600 | 982,524 |
| Ambac Financial Group, Inc. * | 10,355 | 168,269 |
| American Equity Investment Life Holding Co. | 12,899 | 312,930 |
| American Financial Group, Inc. | 16,946 | 1,170,291 |
| American International Group, Inc. | 303,492 | 18,312,707 |
| American National Insurance Co. | 2,177 | 216,154 |
| AMERISAFE, Inc. | 4,106 | 191,914 |
| AmTrust Financial Services, Inc. | 6,683 | 388,616 |
| Aon plc | 66,387 | 6,203,201 |
| Arch Capital Group Ltd. * | 29,718 | 2,029,145 |
| Argo Group International Holdings Ltd. | 6,739 | 377,249 |
| Arthur J. Gallagher & Co. | 33,982 | 1,485,693 |
| Aspen Insurance Holdings Ltd. | 16,400 | 752,924 |
| Assurant, Inc. | 17,002 | 1,264,099 |
| Assured Guaranty Ltd. | 37,475 | 946,619 |
| Axis Capital Holdings Ltd. | 23,319 | 1,305,864 |
| Brown & Brown, Inc. | 26,650 | 854,399 |
| Security | Number of Shares | Value ($) |
| Cincinnati Financial Corp. | 34,850 | 1,823,700 |
| CNA Financial Corp. | 8,216 | 295,612 |
| CNO Financial Group, Inc. | 51,658 | 924,162 |
| Employers Holdings, Inc. | 8,200 | 180,810 |
| Endurance Specialty Holdings Ltd. | 13,124 | 836,655 |
| Enstar Group Ltd. * | 2,450 | 357,970 |
| Erie Indemnity Co., Class A | 6,164 | 505,263 |
| Everest Re Group Ltd. | 9,648 | 1,696,215 |
| FBL Financial Group, Inc., Class A | 4,372 | 249,379 |
| First American Financial Corp. | 24,600 | 955,956 |
| FNF Group | 61,609 | 2,243,184 |
| Greenlight Capital Re Ltd., Class A * | 6,150 | 156,825 |
| HCC Insurance Holdings, Inc. | 21,456 | 1,657,905 |
| Horace Mann Educators Corp. | 8,805 | 292,502 |
| Infinity Property & Casualty Corp. | 2,050 | 158,424 |
| Kemper Corp. | 12,300 | 435,666 |
| Lincoln National Corp. | 58,469 | 2,969,641 |
| Loews Corp. | 69,935 | 2,549,131 |
| Maiden Holdings Ltd. | 10,615 | 152,113 |
| Markel Corp. * | 3,310 | 2,726,612 |
| Marsh & McLennan Cos., Inc. | 121,581 | 6,532,547 |
| Mercury General Corp. | 8,200 | 417,052 |
| MetLife, Inc. | 254,213 | 12,736,071 |
| National General Holdings Corp. | 10,894 | 199,687 |
| Old Republic International Corp. | 53,444 | 839,605 |
| PartnerRe Ltd. | 10,884 | 1,506,454 |
| Primerica, Inc. | 10,250 | 435,523 |
| Principal Financial Group, Inc. | 63,592 | 3,201,857 |
| ProAssurance Corp. | 13,172 | 635,286 |
| Prudential Financial, Inc. | 102,706 | 8,288,374 |
| Reinsurance Group of America, Inc. | 16,400 | 1,490,432 |
| RenaissanceRe Holdings Ltd. | 12,098 | 1,233,391 |
| RLI Corp. | 8,200 | 427,302 |
| Safety Insurance Group, Inc. | 4,100 | 215,578 |
| Selective Insurance Group, Inc. | 12,300 | 372,936 |
| StanCorp Financial Group, Inc. | 10,250 | 1,165,527 |
| Stewart Information Services Corp. | 4,872 | 188,741 |
| Symetra Financial Corp. | 23,023 | 724,534 |
| The Allstate Corp. | 97,924 | 5,707,011 |
| The Chubb Corp. | 53,586 | 6,473,725 |
| The Hanover Insurance Group, Inc. | 9,128 | 720,199 |
| The Hartford Financial Services Group, Inc. | 98,489 | 4,525,570 |
| The Navigators Group, Inc. * | 2,056 | 156,359 |
| The Progressive Corp. | 120,997 | 3,625,070 |
| The Travelers Cos., Inc. | 76,197 | 7,585,411 |
| Torchmark Corp. | 30,966 | 1,810,272 |
| United Fire Group, Inc. | 4,306 | 142,959 |
| Unum Group | 59,838 | 2,006,967 |
| Validus Holdings Ltd. | 20,739 | 918,323 |
| W.R. Berkley Corp. | 24,744 | 1,343,104 |
| White Mountains Insurance Group Ltd. | 1,412 | 1,015,666 |
| Willis Group Holdings plc | 37,852 | 1,631,043 |
| XL Group plc | 66,990 | 2,498,057 |
| 154,235,125 | ||
| Materials 3.3% | ||
| A. Schulman, Inc. | 6,303 | 216,382 |
| Air Products & Chemicals, Inc. | 43,127 | 6,017,510 |
See financial notes 9
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Airgas, Inc. | 14,764 | 1,425,021 |
| AK Steel Holding Corp. *(a) | 53,100 | 164,079 |
| Albemarle Corp. | 25,568 | 1,155,929 |
| Alcoa, Inc. | 281,364 | 2,658,890 |
| AptarGroup, Inc. | 14,350 | 966,616 |
| Ashland, Inc. | 16,400 | 1,721,508 |
| Avery Dennison Corp. | 21,124 | 1,226,882 |
| Axalta Coating Systems Ltd. * | 19,709 | 575,306 |
| Axiall Corp. | 16,415 | 414,643 |
| Balchem Corp. | 8,200 | 479,946 |
| Ball Corp. | 31,116 | 2,050,856 |
| Bemis Co., Inc. | 24,600 | 1,043,532 |
| Berry Plastics Group, Inc. * | 27,127 | 802,959 |
| Boise Cascade Co. * | 8,332 | 270,373 |
| Cabot Corp. | 14,350 | 486,034 |
| Calgon Carbon Corp. | 12,370 | 201,136 |
| Carpenter Technology Corp. | 8,488 | 331,032 |
| Celanese Corp., Series A | 36,900 | 2,237,616 |
| CF Industries Holdings, Inc. | 56,159 | 3,222,403 |
| Chemtura Corp. * | 24,600 | 669,120 |
| Clearwater Paper Corp. * | 6,150 | 344,769 |
| Cliffs Natural Resources, Inc. (a) | 55,861 | 221,768 |
| Coeur Mining, Inc. * | 52,784 | 177,354 |
| Commercial Metals Co. | 26,650 | 418,405 |
| Compass Minerals International, Inc. | 8,200 | 664,200 |
| Crown Holdings, Inc. * | 33,094 | 1,640,470 |
| Cytec Industries, Inc. | 20,500 | 1,521,100 |
| Deltic Timber Corp. | 2,278 | 141,487 |
| Domtar Corp. | 16,400 | 659,444 |
| E.I. du Pont de Nemours & Co. | 207,428 | 10,682,542 |
| Eagle Materials, Inc. | 10,832 | 886,383 |
| Eastman Chemical Co. | 34,850 | 2,525,231 |
| Ecolab, Inc. | 62,283 | 6,797,567 |
| Ferro Corp. * | 18,727 | 230,342 |
| Flotek Industries, Inc. *(a) | 8,712 | 170,407 |
| FMC Corp. | 30,797 | 1,303,021 |
| Freeport-McMoRan, Inc. | 234,003 | 2,489,792 |
| Globe Specialty Metals, Inc. | 10,713 | 147,197 |
| Graphic Packaging Holding Co. | 73,919 | 1,042,258 |
| H.B. Fuller Co. | 10,492 | 380,230 |
| Haynes International, Inc. | 4,100 | 156,702 |
| Headwaters, Inc. * | 19,442 | 392,340 |
| Hecla Mining Co. | 178,980 | 368,699 |
| Horsehead Holding Corp. *(a) | 43,560 | 356,321 |
| Huntsman Corp. | 45,888 | 758,529 |
| Innophos Holdings, Inc. | 6,150 | 295,630 |
| Innospec, Inc. | 2,936 | 144,158 |
| International Flavors & Fragrances, Inc. | 18,450 | 2,021,197 |
| International Paper Co. | 100,473 | 4,334,405 |
| Kaiser Aluminum Corp. | 4,100 | 342,678 |
| KapStone Paper & Packaging Corp. | 20,540 | 447,567 |
| Kraton Performance Polymers, Inc. * | 6,448 | 136,117 |
| Louisiana-Pacific Corp. * | 30,750 | 505,530 |
| LSB Industries, Inc. * | 4,102 | 98,079 |
| LyondellBasell Industries N.V., Class A | 91,107 | 7,778,716 |
| Martin Marietta Materials, Inc. | 13,018 | 2,184,420 |
| Materion Corp. | 4,206 | 130,218 |
| Security | Number of Shares | Value ($) |
| Minerals Technologies, Inc. | 8,228 | 442,584 |
| Monsanto Co. | 109,448 | 10,687,597 |
| Myers Industries, Inc. | 8,200 | 116,932 |
| Neenah Paper, Inc. | 2,503 | 144,473 |
| NewMarket Corp. | 2,176 | 833,930 |
| Newmont Mining Corp. | 117,006 | 1,997,292 |
| Nucor Corp. | 70,206 | 3,039,218 |
| Olin Corp. | 20,500 | 409,180 |
| OM Group, Inc. | 6,150 | 206,025 |
| Owens-Illinois, Inc. * | 38,950 | 812,107 |
| P.H. Glatfelter Co. | 8,644 | 156,111 |
| Packaging Corp. of America | 22,550 | 1,513,330 |
| Platform Specialty Products Corp. * | 20,942 | 400,830 |
| PolyOne Corp. | 20,500 | 665,635 |
| PPG Industries, Inc. | 62,844 | 5,988,405 |
| Praxair, Inc. | 65,712 | 6,949,044 |
| Quaker Chemical Corp. | 4,100 | 325,376 |
| Rayonier Advanced Materials, Inc. | 15,504 | 105,737 |
| Reliance Steel & Aluminum Co. | 16,447 | 955,900 |
| Resolute Forest Products, Inc. * | 21,106 | 212,959 |
| Royal Gold, Inc. | 14,365 | 691,244 |
| RPM International, Inc. | 30,750 | 1,348,387 |
| Schweitzer-Mauduit International, Inc. | 8,200 | 289,706 |
| Sealed Air Corp. | 43,319 | 2,228,763 |
| Sensient Technologies Corp. | 12,300 | 801,345 |
| Sigma-Aldrich Corp. | 27,303 | 3,806,311 |
| Silgan Holdings, Inc. | 10,351 | 541,978 |
| Sonoco Products Co. | 22,550 | 886,666 |
| Steel Dynamics, Inc. | 49,200 | 958,416 |
| Stepan Co. | 4,100 | 184,623 |
| Stillwater Mining Co. * | 24,982 | 238,578 |
| Summit Materials, Inc., Class A * | 12,300 | 288,558 |
| SunCoke Energy, Inc. | 12,806 | 147,013 |
| The Chemours Co. | 41,477 | 401,083 |
| The Dow Chemical Co. | 248,524 | 10,875,410 |
| The Mosaic Co. | 74,369 | 3,036,486 |
| The Scotts Miracle-Gro Co., Class A | 10,250 | 637,447 |
| The Sherwin-Williams Co. | 18,997 | 4,859,623 |
| The Valspar Corp. | 16,924 | 1,240,529 |
| TimkenSteel Corp. | 8,917 | 159,347 |
| United States Steel Corp. | 31,680 | 518,918 |
| Vulcan Materials Co. | 28,806 | 2,696,818 |
| W.R. Grace & Co. * | 17,071 | 1,689,005 |
| Westlake Chemical Corp. | 8,494 | 469,124 |
| WestRock Co. | 63,219 | 3,752,048 |
| Worthington Industries, Inc. | 14,382 | 368,035 |
| 160,311,172 | ||
| Media 3.3% | ||
| AMC Networks, Inc., Class A * | 14,350 | 1,038,653 |
| Cable One, Inc. * | 1,012 | 420,324 |
| Cablevision Systems Corp., Class A | 47,814 | 1,203,478 |
| Carmike Cinemas, Inc. * | 4,872 | 116,197 |
| CBS Corp., Class B Non-Voting Shares | 109,124 | 4,936,770 |
| Charter Communications, Inc., Class A *(a) | 17,774 | 3,227,936 |
| Cinemark Holdings, Inc. | 24,600 | 874,530 |
10 See financial notes
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Clear Channel Outdoor Holdings, Inc., Class A * | 16,820 | 137,251 |
| Comcast Corp., Class A | 579,787 | 32,659,402 |
| Discovery Communications, Inc., Class A *(a) | 33,230 | 883,918 |
| Discovery Communications, Inc., Class C * | 61,532 | 1,560,452 |
| DISH Network Corp., Class A * | 47,682 | 2,826,112 |
| DreamWorks Animation SKG, Inc., Class A *(a) | 14,995 | 299,000 |
| Gannett Co., Inc. * | 25,767 | 337,805 |
| Global Eagle Entertainment, Inc. *(a) | 20,790 | 244,698 |
| Gray Television, Inc. * | 12,326 | 142,858 |
| John Wiley & Sons, Inc., Class A | 10,650 | 549,114 |
| Liberty Broadband Corp., Class A * | 5,424 | 295,445 |
| Liberty Broadband Corp., Class C * | 13,526 | 724,047 |
| Liberty Global plc LiLAC, Class A * | 3,189 | 109,606 |
| Liberty Global plc LiLAC, Class C * | 6,378 | 212,069 |
| Liberty Global plc, Class A * | 64,223 | 3,090,411 |
| Liberty Global plc, Series C * | 127,657 | 5,727,970 |
| Liberty Media Corp., Class A * | 22,964 | 855,409 |
| Liberty Media Corp., Class C * | 45,928 | 1,663,512 |
| Lions Gate Entertainment Corp. | 17,804 | 653,229 |
| Live Nation Entertainment, Inc. * | 30,841 | 759,305 |
| Loral Space & Communications, Inc. * | 4,100 | 222,261 |
| Media General, Inc. * | 22,650 | 266,137 |
| Meredith Corp. | 10,250 | 484,005 |
| Morningstar, Inc. | 4,414 | 352,149 |
| National CineMedia, Inc. | 14,378 | 189,071 |
| New Media Investment Group, Inc. | 14,132 | 210,849 |
| News Corp., Class A * | 111,420 | 1,518,655 |
| Nexstar Broadcasting Group, Inc., Class A | 4,960 | 230,541 |
| Omnicom Group, Inc. | 57,608 | 3,858,584 |
| Regal Entertainment Group, Class A | 18,450 | 350,919 |
| Rentrak Corp. *(a) | 2,436 | 111,179 |
| Scholastic Corp. | 4,502 | 194,531 |
| Scripps Networks Interactive, Inc., Class A | 23,436 | 1,244,217 |
| Sinclair Broadcast Group, Inc., Class A | 15,501 | 415,117 |
| Sirius XM Holdings, Inc. * | 639,053 | 2,437,987 |
| Starz, Class A * | 24,747 | 930,735 |
| TEGNA, Inc. | 51,592 | 1,227,374 |
| The E.W. Scripps Co., Class A | 17,523 | 307,003 |
| The Interpublic Group of Cos., Inc. | 98,435 | 1,858,453 |
| The Madison Square Garden Co., Class A * | 12,753 | 898,321 |
| The New York Times Co., Class A | 36,900 | 448,704 |
| The Walt Disney Co. | 354,784 | 36,145,394 |
| Time Warner Cable, Inc. | 62,213 | 11,572,862 |
| Time Warner, Inc. | 189,629 | 13,482,622 |
| Time, Inc. | 24,993 | 519,105 |
| Tribune Media Co., Class A | 21,485 | 858,111 |
| Twenty-First Century Fox, Inc., Class A | 401,631 | 11,000,673 |
| Viacom, Inc., Class B | 88,241 | 3,597,586 |
| 160,482,646 |
| Security | Number of Shares | Value ($) |
| Pharmaceuticals, Biotechnology & Life Sciences 9.5% | ||
| AbbVie, Inc. | 392,144 | 24,473,707 |
| ACADIA Pharmaceuticals, Inc. * | 21,250 | 778,388 |
| Accelerate Diagnostics, Inc. *(a) | 12,448 | 244,230 |
| Acceleron Pharma, Inc. * | 6,250 | 181,125 |
| Achillion Pharmaceuticals, Inc. * | 27,215 | 201,119 |
| Acorda Therapeutics, Inc. * | 8,441 | 269,859 |
| Aegerion Pharmaceuticals, Inc. *(a) | 16,954 | 299,916 |
| Affymetrix, Inc. * | 16,824 | 156,968 |
| Agilent Technologies, Inc. | 77,900 | 2,828,549 |
| Agios Pharmaceuticals, Inc. * | 2,150 | 185,760 |
| Akorn, Inc. * | 20,327 | 808,811 |
| Alexion Pharmaceuticals, Inc. * | 50,418 | 8,681,475 |
| Alkermes plc * | 32,868 | 1,957,618 |
| Allergan plc * | 89,173 | 27,085,407 |
| Alnylam Pharmaceuticals, Inc. * | 16,947 | 1,744,016 |
| AMAG Pharmaceuticals, Inc. * | 4,616 | 288,685 |
| Amgen, Inc. | 173,342 | 26,309,849 |
| Anacor Pharmaceuticals, Inc. * | 9,152 | 1,193,512 |
| Arena Pharmaceuticals, Inc. * | 70,300 | 190,513 |
| ARIAD Pharmaceuticals, Inc. * | 41,680 | 393,459 |
| Array BioPharma, Inc. * | 31,720 | 187,148 |
| Baxalta, Inc. * | 125,050 | 4,395,508 |
| Bio-Rad Laboratories, Inc., Class A * | 4,100 | 571,253 |
| Bio-Techne Corp. | 8,200 | 774,736 |
| BioCryst Pharmaceuticals, Inc. * | 14,766 | 171,876 |
| Biogen, Inc. * | 53,373 | 15,867,793 |
| BioMarin Pharmaceutical, Inc. * | 36,362 | 4,699,425 |
| Bluebird Bio, Inc. * | 7,532 | 1,002,283 |
| Bristol-Myers Squibb Co. | 378,897 | 22,533,005 |
| Bruker Corp. * | 25,063 | 460,658 |
| Cambrex Corp. * | 6,549 | 313,108 |
| Catalent, Inc. * | 17,556 | 558,105 |
| Celgene Corp. * | 180,610 | 21,326,429 |
| Celldex Therapeutics, Inc. * | 24,236 | 359,662 |
| Cepheid, Inc. * | 16,400 | 799,336 |
| Charles River Laboratories International, Inc. * | 10,544 | 726,376 |
| Chimerix, Inc. * | 6,814 | 333,477 |
| Clovis Oncology, Inc. * | 6,308 | 491,141 |
| Depomed, Inc. * | 12,868 | 346,535 |
| Dyax Corp. * | 37,802 | 870,202 |
| Eli Lilly & Co. | 223,470 | 18,402,755 |
| Emergent Biosolutions, Inc. * | 10,345 | 344,385 |
| Endo International plc * | 45,308 | 3,488,716 |
| Endocyte, Inc. *(a) | 44,968 | 236,981 |
| Epizyme, Inc. *(a) | 8,496 | 169,920 |
| Exact Sciences Corp. *(a) | 19,253 | 425,684 |
| Exelixis, Inc. *(a) | 95,568 | 568,630 |
| Foundation Medicine, Inc. *(a) | 7,076 | 166,569 |
| Genomic Health, Inc. * | 4,498 | 123,785 |
| Gilead Sciences, Inc. | 338,149 | 35,529,315 |
| Halozyme Therapeutics, Inc. * | 20,500 | 357,930 |
| Hospira, Inc. * | 36,864 | 3,316,654 |
| Illumina, Inc. * | 32,655 | 6,452,955 |
| ImmunoGen, Inc. * | 46,400 | 624,544 |
| Impax Laboratories, Inc. * | 18,454 | 755,876 |
| Incyte Corp. * | 36,160 | 4,201,430 |
| Intercept Pharmaceuticals, Inc. * | 2,651 | 503,054 |
| Intra-Cellular Therapies, Inc. * | 15,818 | 423,764 |
See financial notes 11
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Intrexon Corp. * | 6,679 | 297,216 |
| Ironwood Pharmaceuticals, Inc. * | 27,893 | 306,823 |
| Isis Pharmaceuticals, Inc. * | 26,745 | 1,342,064 |
| Jazz Pharmaceuticals plc * | 13,223 | 2,232,307 |
| Johnson & Johnson | 631,139 | 59,314,443 |
| Juno Therapeutics, Inc. *(a) | 6,724 | 244,148 |
| Kite Pharma, Inc. *(a) | 4,600 | 244,582 |
| KYTHERA Biopharmaceuticals, Inc. * | 5,716 | 427,100 |
| Lannett Co., Inc. * | 5,476 | 262,574 |
| Lexicon Pharmaceuticals, Inc. *(a) | 27,810 | 332,051 |
| Ligand Pharmaceuticals, Inc. * | 5,028 | 462,274 |
| Lion Biotechnologies, Inc. * | 22,592 | 160,629 |
| Luminex Corp. * | 10,250 | 186,755 |
| MacroGenics, Inc. * | 7,224 | 190,352 |
| Mallinckrodt plc * | 25,659 | 2,212,832 |
| MannKind Corp. *(a) | 80,464 | 304,959 |
| Medivation, Inc. * | 16,400 | 1,444,184 |
| Merck & Co., Inc. | 646,113 | 34,793,185 |
| Merrimack Pharmaceuticals, Inc. * | 26,850 | 270,917 |
| Mettler-Toledo International, Inc. * | 6,397 | 1,897,030 |
| MiMedx Group, Inc. * | 17,364 | 168,604 |
| Momenta Pharmaceuticals, Inc. * | 10,536 | 205,557 |
| Mylan N.V. * | 92,953 | 4,609,539 |
| Myriad Genetics, Inc. *(a) | 20,500 | 769,980 |
| Nektar Therapeutics * | 30,750 | 339,788 |
| Neurocrine Biosciences, Inc. * | 16,488 | 764,713 |
| NewLink Genetics Corp. *(a) | 7,050 | 316,616 |
| Novavax, Inc. * | 80,537 | 867,384 |
| Ophthotech Corp. * | 6,916 | 304,512 |
| OPKO Health, Inc. *(a) | 62,101 | 671,933 |
| Pacira Pharmaceuticals, Inc. * | 7,209 | 414,878 |
| PAREXEL International Corp. * | 14,350 | 943,082 |
| PDL BioPharma, Inc. | 41,000 | 231,650 |
| PerkinElmer, Inc. | 28,700 | 1,397,116 |
| Perrigo Co., plc | 33,424 | 6,115,589 |
| Pfizer, Inc. | 1,406,576 | 45,319,879 |
| Portola Pharmaceuticals, Inc. * | 15,368 | 724,755 |
| Prestige Brands Holdings, Inc. * | 10,543 | 490,460 |
| PTC Therapeutics, Inc. * | 5,085 | 194,196 |
| Puma Biotechnology, Inc. * | 4,993 | 458,957 |
| Quintiles Transnational Holdings, Inc. * | 22,613 | 1,684,895 |
| Raptor Pharmaceutical Corp. * | 34,260 | 415,574 |
| Regeneron Pharmaceuticals, Inc. * | 16,573 | 8,510,236 |
| Relypsa, Inc. * | 8,332 | 191,303 |
| Retrophin, Inc. * | 8,988 | 246,451 |
| Sagent Pharmaceuticals, Inc. * | 13,032 | 260,379 |
| Sangamo BioSciences, Inc. * | 28,362 | 214,417 |
| Sarepta Therapeutics, Inc. *(a) | 12,432 | 443,822 |
| Seattle Genetics, Inc. * | 25,319 | 1,019,596 |
| Synergy Pharmaceuticals, Inc. *(a) | 70,672 | 494,704 |
| Synta Pharmaceuticals Corp. * | 24,904 | 49,808 |
| TESARO, Inc. * | 4,386 | 225,791 |
| The Medicines Co. * | 12,342 | 506,022 |
| TherapeuticsMD, Inc. * | 60,232 | 369,222 |
| Theravance Biopharma, Inc. *(a) | 4,535 | 66,030 |
| Theravance, Inc. (a) | 24,696 | 343,521 |
| Thermo Fisher Scientific, Inc. | 90,355 | 11,327,806 |
| Ultragenyx Pharmaceutical, Inc. * | 6,165 | 688,137 |
| United Therapeutics Corp. * | 10,462 | 1,575,786 |
| Vertex Pharmaceuticals, Inc. * | 55,672 | 7,099,293 |
| Security | Number of Shares | Value ($) |
| VWR Corp. * | 10,250 | 269,063 |
| Waters Corp. * | 20,500 | 2,488,290 |
| ZIOPHARM Oncology, Inc. *(a) | 47,696 | 415,432 |
| Zoetis, Inc. | 111,089 | 4,984,563 |
| 467,279,723 | ||
| Real Estate 4.0% | ||
| Acadia Realty Trust | 16,541 | 488,787 |
| Alexander & Baldwin, Inc. | 10,250 | 346,758 |
| Alexander's, Inc. | 1,299 | 471,537 |
| Alexandria Real Estate Equities, Inc. | 16,864 | 1,450,135 |
| Altisource Residential Corp. | 24,762 | 378,116 |
| American Assets Trust, Inc. | 17,115 | 659,270 |
| American Campus Communities, Inc. | 22,832 | 781,996 |
| American Capital Agency Corp. | 86,616 | 1,656,964 |
| American Capital Mortgage Investment Corp. | 14,500 | 221,415 |
| American Homes 4 Rent, Class A | 31,038 | 495,987 |
| American Tower Corp. | 93,979 | 8,663,924 |
| Annaly Capital Management, Inc. | 207,186 | 2,084,291 |
| Anworth Mortgage Asset Corp. | 33,536 | 168,686 |
| Apartment Investment & Management Co., Class A | 32,806 | 1,182,000 |
| Apollo Commercial Real Estate Finance, Inc. | 25,888 | 423,787 |
| ARMOUR Residential REIT, Inc. | 10,625 | 227,056 |
| Ashford Hospitality Prime, Inc. | 660 | 9,128 |
| Ashford Hospitality Trust, Inc. | 16,400 | 126,936 |
| AvalonBay Communities, Inc. | 29,347 | 4,844,016 |
| BioMed Realty Trust, Inc. | 41,719 | 771,801 |
| Blackstone Mortgage Trust, Inc., Class A | 21,321 | 590,378 |
| Boston Properties, Inc. | 34,850 | 3,951,293 |
| Brandywine Realty Trust | 34,850 | 422,382 |
| Brixmor Property Group, Inc. | 39,781 | 907,802 |
| Camden Property Trust | 18,450 | 1,328,953 |
| Campus Crest Communities, Inc. | 32,928 | 170,238 |
| Capstead Mortgage Corp. | 24,600 | 256,332 |
| Care Capital Properties, Inc. * | 18,297 | 581,662 |
| CareTrust REIT, Inc. | 4,234 | 47,463 |
| CBL & Associates Properties, Inc. | 38,950 | 579,576 |
| CBRE Group, Inc., Class A * | 67,867 | 2,173,101 |
| Cedar Realty Trust, Inc. | 41,440 | 259,414 |
| Chambers Street Properties | 65,952 | 446,495 |
| Chesapeake Lodging Trust | 15,206 | 439,605 |
| Chimera Investment Corp. | 44,241 | 619,816 |
| Colony Capital, Inc., Class A | 29,168 | 633,237 |
| Columbia Property Trust, Inc. | 27,279 | 583,225 |
| Communications Sales & Leasing, Inc. * | 26,507 | 532,791 |
| CoreSite Realty Corp. | 4,100 | 199,629 |
| Corporate Office Properties Trust | 16,936 | 356,164 |
| Corrections Corp. of America | 27,038 | 794,376 |
| Cousins Properties, Inc. | 53,810 | 493,438 |
| Crown Castle International Corp. | 76,583 | 6,386,256 |
| CubeSmart | 33,252 | 840,943 |
| CyrusOne, Inc. | 8,316 | 263,285 |
| CYS Investments, Inc. | 38,212 | 298,436 |
| DCT Industrial Trust, Inc. | 17,238 | 553,512 |
12 See financial notes
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| DDR Corp. | 69,831 | 1,067,716 |
| DiamondRock Hospitality Co. | 43,088 | 506,715 |
| Digital Realty Trust, Inc. | 31,269 | 1,979,953 |
| Douglas Emmett, Inc. | 28,700 | 792,981 |
| Duke Realty Corp. | 83,147 | 1,501,635 |
| DuPont Fabros Technology, Inc. | 14,350 | 383,576 |
| EastGroup Properties, Inc. | 8,200 | 442,800 |
| Education Realty Trust, Inc. | 8,200 | 239,850 |
| Empire State Realty Trust, Inc., Class A | 18,547 | 300,647 |
| EPR Properties | 14,104 | 717,753 |
| Equinix, Inc. | 13,891 | 3,747,375 |
| Equity Commonwealth * | 27,369 | 703,110 |
| Equity LifeStyle Properties, Inc. | 20,500 | 1,143,080 |
| Equity One, Inc. | 19,178 | 450,875 |
| Equity Residential | 81,106 | 5,778,802 |
| Essex Property Trust, Inc. | 14,547 | 3,122,077 |
| Extra Space Storage, Inc. | 28,434 | 2,089,330 |
| Federal Realty Investment Trust | 15,750 | 2,033,010 |
| FelCor Lodging Trust, Inc. | 28,700 | 231,609 |
| First Industrial Realty Trust, Inc. | 20,500 | 397,495 |
| First Potomac Realty Trust | 32,460 | 341,155 |
| Forest City Enterprises, Inc., Class A * | 48,352 | 1,041,019 |
| Forestar Group, Inc. * | 10,464 | 135,300 |
| Franklin Street Properties Corp. | 34,472 | 358,854 |
| Gaming & Leisure Properties, Inc. | 21,367 | 661,095 |
| General Growth Properties, Inc. | 148,216 | 3,761,722 |
| Government Properties Income Trust | 16,966 | 268,741 |
| Hatteras Financial Corp. | 21,100 | 342,453 |
| HCP, Inc. | 105,363 | 3,904,753 |
| Health Care REIT, Inc. | 80,262 | 5,084,598 |
| Healthcare Realty Trust, Inc. | 18,756 | 429,512 |
| Healthcare Trust of America, Inc., Class A | 26,764 | 642,604 |
| Hersha Hospitality Trust | 14,565 | 355,969 |
| Highwoods Properties, Inc. | 22,786 | 864,501 |
| Home Properties, Inc. | 12,300 | 912,783 |
| Hospitality Properties Trust | 33,866 | 871,034 |
| Host Hotels & Resorts, Inc. | 167,130 | 2,963,215 |
| Hudson Pacific Properties, Inc. | 20,854 | 592,045 |
| InfraREIT, Inc. * | 8,288 | 233,556 |
| Inland Real Estate Corp. | 16,688 | 140,346 |
| Invesco Mortgage Capital, Inc. | 32,984 | 448,582 |
| Investors Real Estate Trust | 48,768 | 326,258 |
| Iron Mountain, Inc. | 46,083 | 1,305,992 |
| iStar, Inc. * | 16,424 | 204,807 |
| Jones Lang LaSalle, Inc. | 10,250 | 1,525,917 |
| Kennedy-Wilson Holdings, Inc. | 32,852 | 787,134 |
| Kilroy Realty Corp. | 19,336 | 1,254,133 |
| Kimco Realty Corp. | 92,250 | 2,126,362 |
| Kite Realty Group Trust | 18,764 | 441,142 |
| Lamar Advertising Co., Class A | 19,142 | 1,021,034 |
| LaSalle Hotel Properties | 23,322 | 733,710 |
| Lexington Realty Trust | 41,014 | 330,983 |
| Liberty Property Trust | 33,048 | 1,015,896 |
| LTC Properties, Inc. | 6,344 | 258,772 |
| Mack-Cali Realty Corp. | 19,648 | 368,007 |
| Medical Properties Trust, Inc. | 46,738 | 545,432 |
| MFA Financial, Inc. | 79,950 | 568,444 |
| Security | Number of Shares | Value ($) |
| Mid-America Apartment Communities, Inc. | 17,958 | 1,411,319 |
| Monmouth Real Estate Investment Corp. | 41,440 | 394,509 |
| Monogram Residential Trust, Inc. | 60,212 | 557,563 |
| National Health Investors, Inc. | 6,375 | 351,263 |
| National Retail Properties, Inc. | 27,319 | 949,335 |
| New Residential Investment Corp. | 52,849 | 748,342 |
| New Senior Investment Group, Inc. | 26,179 | 298,179 |
| New York Mortgage Trust, Inc. | 18,489 | 120,918 |
| New York REIT, Inc. | 33,776 | 323,574 |
| NorthStar Realty Finance Corp. | 50,101 | 703,919 |
| Omega Healthcare Investors, Inc. | 47,798 | 1,614,616 |
| One Liberty Properties, Inc. | 6,248 | 136,394 |
| Outfront Media, Inc. | 30,052 | 680,077 |
| Paramount Group, Inc. | 33,442 | 549,786 |
| Parkway Properties, Inc. | 15,253 | 241,608 |
| Pebblebrook Hotel Trust | 17,518 | 666,735 |
| Pennsylvania Real Estate Investment Trust | 14,350 | 284,704 |
| PennyMac Mortgage Investment Trust | 19,894 | 299,803 |
| Piedmont Office Realty Trust, Inc., Class A | 41,000 | 695,360 |
| Plum Creek Timber Co., Inc. | 39,834 | 1,533,211 |
| Post Properties, Inc. | 12,300 | 680,928 |
| Potlatch Corp. | 10,250 | 338,455 |
| Prologis, Inc. | 123,174 | 4,680,612 |
| PS Business Parks, Inc. | 4,378 | 319,419 |
| Public Storage | 32,800 | 6,601,656 |
| QTS Realty Trust, Inc., Class A | 7,124 | 286,314 |
| RAIT Financial Trust | 68,389 | 354,939 |
| Ramco-Gershenson Properties Trust | 15,192 | 235,476 |
| Rayonier, Inc. | 28,700 | 660,100 |
| Realogy Holdings Corp. * | 33,687 | 1,357,586 |
| Realty Income Corp. | 53,954 | 2,411,204 |
| Redwood Trust, Inc. | 22,550 | 329,005 |
| Regency Centers Corp. | 20,500 | 1,215,855 |
| Retail Opportunity Investments Corp. | 19,224 | 306,238 |
| Retail Properties of America, Inc., Class A | 53,780 | 734,097 |
| RLJ Lodging Trust | 31,803 | 875,855 |
| Rouse Properties, Inc. | 22,056 | 342,750 |
| Ryman Hospitality Properties, Inc. | 10,999 | 563,479 |
| Sabra Health Care REIT, Inc. | 15,540 | 372,494 |
| Saul Centers, Inc. | 2,405 | 118,663 |
| Select Income REIT | 11,059 | 205,144 |
| Senior Housing Properties Trust | 58,373 | 916,456 |
| Silver Bay Realty Trust Corp. | 9,285 | 145,403 |
| Simon Property Group, Inc. | 70,480 | 12,638,474 |
| SL Green Realty Corp. | 21,200 | 2,194,412 |
| Sovran Self Storage, Inc. | 8,799 | 789,534 |
| Spirit Realty Capital, Inc. | 92,530 | 888,288 |
| STAG Industrial, Inc. | 12,342 | 210,555 |
| Starwood Property Trust, Inc. | 53,679 | 1,142,289 |
| Starwood Waypoint Residential Trust | 8,901 | 214,425 |
| STORE Capital Corp. | 12,800 | 258,048 |
| Strategic Hotels & Resorts, Inc. * | 54,166 | 730,699 |
| Summit Hotel Properties, Inc. | 21,380 | 259,339 |
See financial notes 13
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Sun Communities, Inc. | 10,444 | 681,053 |
| Sunstone Hotel Investors, Inc. | 42,266 | 584,539 |
| Tanger Factory Outlet Centers, Inc. | 20,705 | 655,106 |
| Taubman Centers, Inc. | 14,350 | 990,006 |
| The Geo Group, Inc. | 18,522 | 556,216 |
| The Howard Hughes Corp. * | 7,650 | 960,763 |
| The Macerich Co. | 30,750 | 2,342,535 |
| The St. Joe Co. * | 22,550 | 393,497 |
| Two Harbors Investment Corp. | 78,484 | 742,459 |
| UDR, Inc. | 55,703 | 1,799,207 |
| Universal Health Realty Income Trust | 4,100 | 188,600 |
| Urban Edge Properties | 19,542 | 408,623 |
| Urstadt Biddle Properties, Inc., Class A | 20,636 | 370,003 |
| Ventas, Inc. | 73,338 | 4,035,057 |
| VEREIT, Inc. | 201,704 | 1,641,871 |
| Vornado Realty Trust | 39,230 | 3,420,464 |
| Washington Real Estate Investment Trust | 14,350 | 353,010 |
| Weingarten Realty Investors | 28,700 | 908,068 |
| Western Asset Mortgage Capital Corp. (a) | 9,316 | 119,058 |
| Weyerhaeuser Co. | 129,723 | 3,624,461 |
| Whitestone REIT | 5,240 | 59,841 |
| WP Carey, Inc. | 20,696 | 1,189,399 |
| WP GLIMCHER, Inc. | 41,358 | 500,845 |
| Xenia Hotels & Resorts, Inc. | 25,954 | 480,149 |
| 197,904,877 | ||
| Retailing 5.1% | ||
| Aaron's, Inc. | 18,450 | 694,642 |
| Abercrombie & Fitch Co., Class A (a) | 15,707 | 311,941 |
| Advance Auto Parts, Inc. | 16,414 | 2,876,553 |
| Amazon.com, Inc. * | 87,227 | 44,737,856 |
| American Eagle Outfitters, Inc. | 43,831 | 746,004 |
| Asbury Automotive Group, Inc. * | 6,476 | 521,771 |
| Ascena Retail Group, Inc. * | 41,241 | 497,783 |
| AutoNation, Inc. * | 14,408 | 862,175 |
| AutoZone, Inc. * | 7,070 | 5,062,049 |
| Barnes & Noble Education, Inc. * | 5,495 | 70,886 |
| Barnes & Noble, Inc. | 8,765 | 136,822 |
| Bed Bath & Beyond, Inc. * | 45,528 | 2,827,744 |
| Best Buy Co., Inc. | 67,219 | 2,469,626 |
| Big Lots, Inc. | 14,478 | 694,799 |
| Blue Nile, Inc. * | 2,303 | 78,440 |
| Burlington Stores, Inc. * | 14,010 | 743,791 |
| Cabela's, Inc. * | 10,532 | 473,624 |
| Caleres, Inc. | 12,312 | 409,990 |
| CarMax, Inc. * | 51,250 | 3,126,250 |
| Chico's FAS, Inc. | 41,000 | 611,310 |
| Conn's, Inc. *(a) | 9,132 | 272,590 |
| Core-Mark Holding Co., Inc. | 4,100 | 246,451 |
| CST Brands, Inc. | 17,101 | 593,747 |
| Dick's Sporting Goods, Inc. | 20,900 | 1,047,717 |
| Dillard's, Inc., Class A | 8,200 | 758,582 |
| Dollar General Corp. | 67,976 | 5,063,532 |
| Dollar Tree, Inc. * | 51,455 | 3,923,958 |
| DSW, Inc., Class A | 16,830 | 499,683 |
| Expedia, Inc. | 23,548 | 2,707,785 |
| Security | Number of Shares | Value ($) |
| Express, Inc. * | 18,942 | 386,417 |
| Five Below, Inc. * | 8,376 | 323,900 |
| Foot Locker, Inc. | 36,900 | 2,612,151 |
| GameStop Corp., Class A (a) | 27,038 | 1,148,574 |
| Genesco, Inc. * | 6,150 | 368,324 |
| Genuine Parts Co. | 34,850 | 2,909,626 |
| GNC Holdings, Inc., Class A | 21,386 | 1,000,865 |
| Group 1 Automotive, Inc. | 6,150 | 537,510 |
| Groupon, Inc. * | 132,387 | 595,742 |
| Guess?, Inc. | 15,350 | 339,389 |
| Hibbett Sports, Inc. * | 4,694 | 185,413 |
| HSN, Inc. | 8,294 | 504,358 |
| J.C. Penney Co., Inc. * | 72,469 | 660,193 |
| Kohl's Corp. | 47,608 | 2,429,436 |
| L Brands, Inc. | 53,494 | 4,488,147 |
| Liberty Interactive Corp. QVC Group, Class A * | 105,733 | 2,859,020 |
| Liberty TripAdvisor Holdings, Inc., Class A * | 16,572 | 420,432 |
| Liberty Ventures, Series A * | 31,400 | 1,247,522 |
| Lithia Motors, Inc., Class A | 4,100 | 437,060 |
| LKQ Corp. * | 66,000 | 1,979,340 |
| Lowe's Cos., Inc. | 217,993 | 15,078,576 |
| Macy's, Inc. | 82,609 | 4,841,713 |
| MarineMax, Inc. * | 9,988 | 162,804 |
| Mattress Firm Holding Corp. *(a) | 3,221 | 193,550 |
| Monro Muffler Brake, Inc. | 6,360 | 403,160 |
| Murphy USA, Inc. * | 10,524 | 537,882 |
| Netflix, Inc. * | 94,636 | 10,885,979 |
| Nordstrom, Inc. | 33,341 | 2,429,892 |
| O'Reilly Automotive, Inc. * | 23,863 | 5,728,790 |
| Office Depot, Inc. * | 113,144 | 897,232 |
| Orbitz Worldwide, Inc. * | 23,711 | 271,965 |
| Outerwall, Inc. (a) | 6,223 | 383,337 |
| Penske Automotive Group, Inc. | 8,554 | 432,832 |
| Pool Corp. | 12,300 | 857,064 |
| Rent-A-Center, Inc. | 12,565 | 337,873 |
| Restoration Hardware Holdings, Inc. * | 6,310 | 583,549 |
| Ross Stores, Inc. | 102,916 | 5,003,776 |
| Sally Beauty Holdings, Inc. * | 34,850 | 910,979 |
| Sears Holdings Corp. *(a) | 11,750 | 313,490 |
| Select Comfort Corp. * | 14,350 | 349,423 |
| Shutterfly, Inc. * | 8,216 | 319,274 |
| Signet Jewelers Ltd. | 18,450 | 2,546,100 |
| Sonic Automotive, Inc., Class A | 10,260 | 220,693 |
| Staples, Inc. | 147,883 | 2,101,417 |
| Target Corp. | 145,824 | 11,331,983 |
| The Buckle, Inc. (a) | 6,150 | 259,530 |
| The Cato Corp., Class A | 6,169 | 216,717 |
| The Children's Place, Inc. | 4,494 | 269,280 |
| The Finish Line, Inc., Class A | 10,694 | 282,001 |
| The Gap, Inc. | 58,308 | 1,913,085 |
| The Home Depot, Inc. | 295,271 | 34,387,261 |
| The Men's Wearhouse, Inc. | 12,300 | 694,335 |
| The Michaels Cos., Inc. * | 10,710 | 280,709 |
| The Priceline Group, Inc. * | 11,694 | 14,601,596 |
| The TJX Cos., Inc. | 156,294 | 10,990,594 |
| Tiffany & Co. | 26,697 | 2,195,828 |
| Tractor Supply Co. | 32,800 | 2,798,168 |
| TripAdvisor, Inc. * | 24,674 | 1,724,713 |
14 See financial notes
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Ulta Salon, Cosmetics & Fragrance, Inc. * | 14,350 | 2,268,591 |
| Urban Outfitters, Inc. * | 24,942 | 769,710 |
| Vitamin Shoppe, Inc. * | 8,200 | 293,560 |
| Williams-Sonoma, Inc. | 18,844 | 1,432,709 |
| 251,003,240 | ||
| Semiconductors & Semiconductor Equipment 2.3% | ||
| Advanced Energy Industries, Inc. * | 6,709 | 162,827 |
| Advanced Micro Devices, Inc. *(a) | 135,510 | 245,273 |
| Altera Corp. | 68,684 | 3,334,608 |
| Amkor Technology, Inc. * | 31,010 | 167,454 |
| Analog Devices, Inc. | 70,378 | 3,931,315 |
| Applied Materials, Inc. | 278,833 | 4,485,029 |
| Applied Micro Circuits Corp. * | 68,750 | 402,188 |
| Atmel Corp. | 102,500 | 837,425 |
| Avago Technologies Ltd. | 57,950 | 7,299,961 |
| Broadcom Corp., Class A | 123,384 | 6,375,251 |
| Brooks Automation, Inc. | 16,400 | 170,232 |
| Cabot Microelectronics Corp. * | 6,150 | 266,787 |
| Cavium, Inc. * | 13,986 | 951,328 |
| Cirrus Logic, Inc. * | 16,501 | 497,670 |
| Cree, Inc. *(a) | 26,212 | 713,491 |
| Cypress Semiconductor Corp. * | 97,894 | 978,940 |
| Diodes, Inc. * | 8,200 | 161,458 |
| Entegris, Inc. * | 30,750 | 422,197 |
| Fairchild Semiconductor International, Inc. * | 27,244 | 370,518 |
| First Solar, Inc. * | 15,314 | 732,622 |
| FormFactor, Inc. * | 33,584 | 223,334 |
| Freescale Semiconductor Ltd. * | 21,596 | 771,625 |
| Integrated Device Technology, Inc. * | 31,314 | 594,653 |
| Intel Corp. | 1,077,002 | 30,737,637 |
| Intersil Corp., Class A | 31,276 | 329,649 |
| KLA-Tencor Corp. | 38,950 | 1,951,784 |
| Kulicke & Soffa Industries, Inc. * | 18,450 | 194,832 |
| Lam Research Corp. | 41,019 | 2,984,953 |
| Lattice Semiconductor Corp. * | 25,324 | 105,854 |
| Linear Technology Corp. | 51,403 | 2,070,513 |
| Marvell Technology Group Ltd. | 90,996 | 1,025,525 |
| Maxim Integrated Products, Inc. | 65,694 | 2,211,917 |
| Microchip Technology, Inc. | 49,200 | 2,091,000 |
| Micron Technology, Inc. * | 249,889 | 4,100,678 |
| Microsemi Corp. * | 22,550 | 716,188 |
| MKS Instruments, Inc. | 12,300 | 414,510 |
| Monolithic Power Systems, Inc. | 6,608 | 317,779 |
| Nanometrics, Inc. * | 16,050 | 222,935 |
| NVIDIA Corp. | 116,004 | 2,607,770 |
| OmniVision Technologies, Inc. * | 12,540 | 299,706 |
| ON Semiconductor Corp. * | 98,400 | 940,212 |
| PMC-Sierra, Inc. * | 49,200 | 309,468 |
| Power Integrations, Inc. | 6,178 | 242,487 |
| Qorvo, Inc. * | 35,017 | 1,943,794 |
| Rambus, Inc. * | 24,600 | 330,378 |
| Semtech Corp. * | 16,400 | 277,980 |
| Silicon Laboratories, Inc. * | 10,250 | 445,670 |
| Skyworks Solutions, Inc. | 43,050 | 3,760,417 |
| SunEdison, Inc. * | 65,619 | 682,438 |
| SunPower Corp. * | 16,797 | 407,495 |
| Synaptics, Inc. * | 8,200 | 574,738 |
| Teradyne, Inc. | 41,000 | 739,640 |
| Security | Number of Shares | Value ($) |
| Tessera Technologies, Inc. | 12,300 | 402,702 |
| Texas Instruments, Inc. | 246,764 | 11,805,190 |
| Veeco Instruments, Inc. * | 8,347 | 192,565 |
| Xilinx, Inc. | 60,558 | 2,536,775 |
| 112,071,365 | ||
| Software & Services 10.8% | ||
| Accenture plc, Class A | 141,903 | 13,377,196 |
| ACI Worldwide, Inc. * | 25,170 | 536,876 |
| Activision Blizzard, Inc. | 109,196 | 3,126,281 |
| Actua Corp. * | 8,692 | 123,687 |
| Acxiom Corp. * | 20,500 | 429,680 |
| Adobe Systems, Inc. * | 108,919 | 8,557,766 |
| Akamai Technologies, Inc. * | 41,000 | 2,923,710 |
| Alliance Data Systems Corp. * | 13,616 | 3,501,899 |
| Amdocs Ltd. | 35,438 | 2,027,408 |
| ANSYS, Inc. * | 20,647 | 1,829,324 |
| Aspen Technology, Inc. * | 20,653 | 782,129 |
| Autodesk, Inc. * | 51,250 | 2,395,937 |
| Automatic Data Processing, Inc. | 108,844 | 8,415,818 |
| Bankrate, Inc. * | 30,950 | 305,167 |
| Blackbaud, Inc. | 14,350 | 819,959 |
| Blackhawk Network Holdings, Inc. * | 8,870 | 350,454 |
| Booz Allen Hamilton Holding Corp. | 17,621 | 470,481 |
| Bottomline Technologies (DE), Inc. * | 10,250 | 274,085 |
| Broadridge Financial Solutions, Inc. | 28,721 | 1,516,182 |
| BroadSoft, Inc. * | 10,730 | 338,639 |
| CA, Inc. | 76,303 | 2,082,309 |
| CACI International, Inc., Class A * | 6,150 | 482,283 |
| Cadence Design Systems, Inc. * | 68,466 | 1,370,689 |
| Cardtronics, Inc. * | 10,250 | 353,625 |
| Cass Information Systems, Inc. | 2,290 | 110,378 |
| CDK Global, Inc. | 35,930 | 1,779,972 |
| Citrix Systems, Inc. * | 37,047 | 2,523,271 |
| Cognizant Technology Solutions Corp., Class A * | 137,890 | 8,678,797 |
| CommVault Systems, Inc. * | 10,250 | 367,360 |
| Computer Sciences Corp. | 34,850 | 2,160,352 |
| comScore, Inc. * | 6,831 | 356,647 |
| Constant Contact, Inc. * | 7,202 | 178,322 |
| Convergys Corp. | 28,700 | 648,620 |
| CoreLogic, Inc. * | 22,991 | 872,508 |
| Cornerstone OnDemand, Inc. * | 16,752 | 598,716 |
| CoStar Group, Inc. * | 7,350 | 1,301,244 |
| CSG Systems International, Inc. | 8,200 | 253,462 |
| Cvent, Inc. * | 11,550 | 364,287 |
| Dealertrack Technologies, Inc. * | 9,200 | 577,392 |
| Demandware, Inc. * | 6,389 | 356,442 |
| DHI Group, Inc. * | 12,318 | 96,080 |
| DST Systems, Inc. | 8,200 | 839,844 |
| EarthLink Holdings Corp. | 66,800 | 560,452 |
| eBay, Inc. * | 254,633 | 6,903,101 |
| Ebix, Inc. (a) | 8,632 | 245,062 |
| Electronic Arts, Inc. * | 73,800 | 4,881,870 |
| Ellie Mae, Inc. * | 5,144 | 372,580 |
| Endurance International Group Holdings, Inc. * | 15,022 | 229,686 |
| Envestnet, Inc. * | 6,606 | 206,305 |
| EPAM Systems, Inc. * | 4,606 | 325,230 |
| Euronet Worldwide, Inc. * | 12,300 | 792,981 |
| Everi Holdings, Inc. * | 14,421 | 74,557 |
See financial notes 15
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| EVERTEC, Inc. | 12,358 | 223,680 |
| ExlService Holdings, Inc. * | 6,150 | 222,507 |
| Facebook, Inc., Class A * | 478,831 | 42,821,856 |
| FactSet Research Systems, Inc. | 10,250 | 1,618,680 |
| Fair Isaac Corp. | 6,606 | 565,275 |
| Fidelity National Information Services, Inc. | 68,090 | 4,702,295 |
| FireEye, Inc. * | 6,707 | 253,390 |
| Fiserv, Inc. * | 55,914 | 4,767,787 |
| FleetCor Technologies, Inc. * | 16,561 | 2,470,239 |
| Fortinet, Inc. * | 28,778 | 1,212,705 |
| Gartner, Inc. * | 20,500 | 1,752,955 |
| Genpact Ltd. * | 29,153 | 670,519 |
| Gigamon, Inc. * | 15,050 | 342,839 |
| Global Payments, Inc. | 16,942 | 1,887,169 |
| Gogo, Inc. *(a) | 14,476 | 230,024 |
| Google, Inc., Class A * | 65,322 | 42,316,898 |
| Google, Inc., Class C * | 65,290 | 40,365,542 |
| GrubHub, Inc. * | 5,076 | 134,260 |
| Guidewire Software, Inc. * | 14,887 | 832,332 |
| Heartland Payment Systems, Inc. | 6,749 | 402,105 |
| HomeAway, Inc. * | 19,568 | 561,406 |
| IAC/InterActiveCorp | 18,450 | 1,287,810 |
| Imperva, Inc. * | 6,614 | 394,062 |
| Infoblox, Inc. * | 10,865 | 209,043 |
| Internap Corp. * | 36,550 | 291,304 |
| International Business Machines Corp. | 209,616 | 31,000,110 |
| Intuit, Inc. | 66,172 | 5,674,249 |
| j2 Global, Inc. | 10,371 | 721,614 |
| Jack Henry & Associates, Inc. | 20,500 | 1,393,180 |
| Leidos Holdings, Inc. | 15,242 | 641,383 |
| LinkedIn Corp., Class A * | 24,343 | 4,396,346 |
| LivePerson, Inc. * | 13,228 | 121,036 |
| LogMeIn, Inc. * | 4,554 | 283,896 |
| Manhattan Associates, Inc. * | 24,600 | 1,438,608 |
| ManTech International Corp., Class A | 10,395 | 284,719 |
| Marketo, Inc. * | 7,614 | 213,268 |
| MasterCard, Inc., Class A | 219,055 | 20,234,110 |
| MAXIMUS, Inc. | 13,138 | 795,506 |
| Mentor Graphics Corp. | 21,412 | 553,286 |
| Microsoft Corp. | 1,847,193 | 80,389,839 |
| MicroStrategy, Inc., Class A * | 2,050 | 407,335 |
| Monotype Imaging Holdings, Inc. | 8,200 | 173,676 |
| Monster Worldwide, Inc. * | 41,260 | 299,960 |
| NetSuite, Inc. * | 8,735 | 776,105 |
| NeuStar, Inc., Class A *(a) | 12,414 | 346,971 |
| NIC, Inc. | 12,300 | 231,732 |
| Nuance Communications, Inc. * | 52,525 | 865,087 |
| Oracle Corp. | 726,946 | 26,962,427 |
| Pandora Media, Inc. * | 37,048 | 664,641 |
| Paychex, Inc. | 73,800 | 3,295,908 |
| Paycom Software, Inc. * | 10,268 | 395,729 |
| PayPal Holdings, Inc. * | 254,633 | 8,912,155 |
| Pegasystems, Inc. | 8,444 | 206,962 |
| Perficient, Inc. * | 14,718 | 243,730 |
| Progress Software Corp. * | 12,778 | 346,156 |
| Proofpoint, Inc. * | 12,831 | 722,899 |
| PROS Holdings, Inc. * | 4,606 | 101,885 |
| PTC, Inc. * | 26,877 | 890,166 |
| Qlik Technologies, Inc. * | 19,607 | 742,321 |
| Security | Number of Shares | Value ($) |
| Qualys, Inc. * | 7,238 | 210,336 |
| Rackspace Hosting, Inc. * | 24,600 | 748,086 |
| RealPage, Inc. * | 15,350 | 282,594 |
| Red Hat, Inc. * | 43,050 | 3,108,640 |
| Sabre Corp. | 23,901 | 650,585 |
| salesforce.com, Inc. * | 137,161 | 9,513,487 |
| Science Applications International Corp. | 8,710 | 424,787 |
| SciQuest, Inc. * | 18,550 | 203,679 |
| ServiceNow, Inc. * | 28,719 | 2,037,900 |
| ServiceSource International, Inc. * | 71,116 | 337,090 |
| Silver Spring Networks, Inc. * | 25,688 | 297,981 |
| SolarWinds, Inc. * | 12,877 | 511,861 |
| Solera Holdings, Inc. | 14,750 | 710,508 |
| Splunk, Inc. * | 27,661 | 1,714,152 |
| SPS Commerce, Inc. * | 2,936 | 199,707 |
| SS&C Technologies Holdings, Inc. | 17,220 | 1,166,483 |
| Stamps.com, Inc. * | 3,672 | 302,352 |
| Sykes Enterprises, Inc. * | 8,712 | 219,107 |
| Symantec Corp. | 162,533 | 3,330,301 |
| Synchronoss Technologies, Inc. * | 8,200 | 331,198 |
| Synopsys, Inc. * | 33,053 | 1,551,177 |
| Syntel, Inc. * | 4,920 | 218,694 |
| Tableau Software, Inc., Class A * | 10,325 | 972,305 |
| Take-Two Interactive Software, Inc. * | 20,500 | 597,165 |
| Tangoe, Inc. * | 15,504 | 116,280 |
| TeleTech Holdings, Inc. | 8,270 | 223,704 |
| Teradata Corp. * | 35,854 | 1,048,012 |
| Textura Corp. *(a) | 12,700 | 328,422 |
| The Ultimate Software Group, Inc. * | 6,150 | 1,083,569 |
| The Western Union Co. | 120,290 | 2,218,148 |
| TiVo, Inc. * | 30,750 | 279,825 |
| Total System Services, Inc. | 35,385 | 1,621,695 |
| Twitter, Inc. * | 120,278 | 3,342,526 |
| Tyler Technologies, Inc. * | 8,200 | 1,131,928 |
| Unisys Corp. * | 10,250 | 134,993 |
| Vantiv, Inc., Class A * | 33,063 | 1,456,095 |
| VASCO Data Security International, Inc. *(a) | 11,040 | 184,589 |
| VeriFone Systems, Inc. * | 27,544 | 860,475 |
| Verint Systems, Inc. * | 13,459 | 717,768 |
| VeriSign, Inc. *(a) | 25,282 | 1,742,941 |
| Virtusa Corp. * | 4,706 | 249,042 |
| Visa, Inc., Class A | 439,784 | 31,356,599 |
| VMware, Inc., Class A * | 18,642 | 1,475,514 |
| Web.com Group, Inc. * | 8,200 | 176,546 |
| WebMD Health Corp. * | 10,662 | 438,528 |
| WEX, Inc. * | 8,347 | 789,042 |
| Workday, Inc., Class A * | 19,884 | 1,397,050 |
| Xerox Corp. | 248,128 | 2,523,462 |
| Xoom Corp. * | 8,652 | 214,829 |
| Yahoo! Inc. * | 203,187 | 6,550,749 |
| Zendesk, Inc. * | 11,260 | 232,857 |
| Zillow Group, Inc., Class A *(a) | 9,372 | 237,861 |
| Zillow Group, Inc., Class C *(a) | 18,797 | 463,534 |
| Zynga, Inc., Class A * | 185,320 | 468,860 |
| 531,016,397 |
16 See financial notes
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Technology Hardware & Equipment 6.0% | ||
| Amphenol Corp., Class A | 73,800 | 3,864,168 |
| Anixter International, Inc. * | 6,197 | 394,501 |
| Apple, Inc. | 1,314,390 | 148,210,616 |
| ARRIS Group, Inc. * | 30,750 | 812,415 |
| Arrow Electronics, Inc. * | 23,191 | 1,296,841 |
| Avnet, Inc. | 34,850 | 1,477,640 |
| AVX Corp. | 14,408 | 188,168 |
| Badger Meter, Inc. | 2,536 | 147,823 |
| Belden, Inc. | 12,300 | 619,797 |
| Benchmark Electronics, Inc. * | 12,488 | 266,869 |
| Brocade Communications Systems, Inc. | 102,865 | 1,095,512 |
| CalAmp Corp. * | 8,744 | 145,325 |
| CDW Corp. | 27,272 | 1,084,062 |
| Ciena Corp. * | 20,500 | 458,380 |
| Cisco Systems, Inc. | 1,159,143 | 29,998,621 |
| Cognex Corp. | 20,500 | 728,980 |
| Coherent, Inc. * | 6,150 | 358,545 |
| CommScope Holding Co., Inc. * | 27,957 | 904,409 |
| Comtech Telecommunications Corp. | 4,242 | 113,177 |
| Corning, Inc. | 295,420 | 5,084,178 |
| Cray, Inc. * | 15,792 | 334,632 |
| Daktronics, Inc. | 10,515 | 91,375 |
| Diebold, Inc. | 14,350 | 446,572 |
| Dolby Laboratories, Inc., Class A | 10,692 | 348,132 |
| DTS, Inc. * | 4,206 | 111,585 |
| EchoStar Corp., Class A * | 8,474 | 377,940 |
| Electronics For Imaging, Inc. * | 10,250 | 448,643 |
| EMC Corp. | 456,316 | 11,348,579 |
| F5 Networks, Inc. * | 17,045 | 2,069,433 |
| Fabrinet * | 8,212 | 163,255 |
| FARO Technologies, Inc. * | 6,150 | 238,928 |
| FEI Co. | 9,271 | 699,775 |
| Finisar Corp. * | 20,500 | 316,315 |
| FLIR Systems, Inc. | 34,850 | 997,755 |
| Harmonic, Inc. * | 32,976 | 190,272 |
| Harris Corp. | 29,092 | 2,234,847 |
| Hewlett-Packard Co. | 420,786 | 11,807,255 |
| II-VI, Inc. * | 17,276 | 291,792 |
| Infinera Corp. * | 41,000 | 894,620 |
| Ingram Micro, Inc., Class A | 34,850 | 943,041 |
| Insight Enterprises, Inc. * | 10,250 | 259,428 |
| InterDigital, Inc. | 10,250 | 507,068 |
| InvenSense, Inc. *(a) | 14,482 | 147,861 |
| IPG Photonics Corp. * | 9,370 | 791,015 |
| Itron, Inc. * | 8,200 | 246,000 |
| Jabil Circuit, Inc. | 45,100 | 872,685 |
| Juniper Networks, Inc. | 90,369 | 2,323,387 |
| Keysight Technologies, Inc. * | 38,950 | 1,247,958 |
| Knowles Corp. *(a) | 18,814 | 306,292 |
| Lexmark International, Inc., Class A | 13,475 | 403,981 |
| Littelfuse, Inc. | 4,100 | 367,975 |
| Lumentum Holdings, Inc. * | 11,038 | 217,890 |
| Methode Electronics, Inc. | 8,812 | 234,135 |
| Motorola Solutions, Inc. | 52,399 | 3,396,503 |
| MTS Systems Corp. | 2,481 | 147,719 |
| National Instruments Corp. | 22,550 | 658,685 |
| NCR Corp. * | 34,850 | 874,386 |
| NetApp, Inc. | 73,876 | 2,361,077 |
| Security | Number of Shares | Value ($) |
| NETGEAR, Inc. * | 8,200 | 249,116 |
| NetScout Systems, Inc. * | 15,998 | 584,727 |
| Newport Corp. * | 8,312 | 127,174 |
| Nimble Storage, Inc. * | 10,540 | 280,996 |
| OSI Systems, Inc. * | 4,147 | 302,897 |
| Palo Alto Networks, Inc. * | 15,876 | 2,607,157 |
| Plantronics, Inc. | 12,300 | 653,868 |
| Plexus Corp. * | 6,692 | 254,764 |
| Polycom, Inc. * | 30,880 | 332,269 |
| QLogic Corp. * | 34,270 | 354,352 |
| QUALCOMM, Inc. | 369,050 | 20,880,849 |
| Rofin-Sinar Technologies, Inc. * | 6,343 | 161,556 |
| Rogers Corp. * | 7,588 | 422,348 |
| SanDisk Corp. | 50,317 | 2,745,296 |
| Sanmina Corp. * | 16,400 | 315,536 |
| ScanSource, Inc. * | 4,676 | 178,623 |
| Seagate Technology plc | 72,942 | 3,749,219 |
| ShoreTel, Inc. * | 17,804 | 132,462 |
| Silicon Graphics International Corp. * | 25,188 | 125,940 |
| Super Micro Computer, Inc. * | 8,244 | 225,473 |
| SYNNEX Corp. | 4,556 | 360,790 |
| TE Connectivity Ltd. | 94,398 | 5,596,857 |
| Tech Data Corp. * | 10,250 | 668,710 |
| Trimble Navigation Ltd. * | 57,400 | 1,084,860 |
| Ubiquiti Networks, Inc. (a) | 6,754 | 237,471 |
| Universal Display Corp. * | 8,742 | 322,055 |
| ViaSat, Inc. * | 10,250 | 602,393 |
| Viavi Solutions, Inc. * | 55,350 | 297,230 |
| Vishay Intertechnology, Inc. | 31,221 | 308,463 |
| Western Digital Corp. | 47,844 | 3,921,294 |
| Zebra Technologies Corp., Class A * | 12,300 | 1,019,424 |
| 296,072,987 | ||
| Telecommunication Services 2.2% | ||
| 8x8, Inc. * | 71,280 | 550,994 |
| AT&T, Inc. | 1,397,267 | 46,389,264 |
| Atlantic Tele-Network, Inc. | 4,100 | 292,945 |
| CenturyLink, Inc. | 119,586 | 3,233,606 |
| Cincinnati Bell, Inc. * | 119,288 | 409,158 |
| Cogent Communications Holdings, Inc. | 10,250 | 284,643 |
| Consolidated Communications Holdings, Inc. | 18,726 | 365,344 |
| Frontier Communications Corp. | 275,325 | 1,395,898 |
| General Communication, Inc., Class A * | 14,439 | 243,297 |
| inContact, Inc. * | 48,854 | 368,848 |
| Iridium Communications, Inc. *(a) | 19,842 | 147,823 |
| Level 3 Communications, Inc. * | 62,335 | 2,788,245 |
| Premiere Global Services, Inc. * | 14,350 | 154,693 |
| SBA Communications Corp., Class A * | 28,981 | 3,425,554 |
| Shenandoah Telecommunications Co. | 8,544 | 330,567 |
| Spok Holdings, Inc. | 12,416 | 204,988 |
| Sprint Corp. * | 131,138 | 663,558 |
| T-Mobile US, Inc. * | 57,530 | 2,278,763 |
| Telephone & Data Systems, Inc. | 26,650 | 757,926 |
| United States Cellular Corp. * | 4,100 | 151,372 |
| Verizon Communications, Inc. | 927,794 | 42,687,802 |
See financial notes 17
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Vonage Holdings Corp. * | 80,004 | 444,022 |
| Zayo Group Holdings, Inc. * | 10,815 | 302,496 |
| 107,871,806 | ||
| Transportation 2.2% | ||
| Air Transport Services Group, Inc. * | 35,050 | 318,604 |
| Alaska Air Group, Inc. | 32,800 | 2,455,408 |
| Allegiant Travel Co. | 4,100 | 833,366 |
| AMERCO | 967 | 362,200 |
| American Airlines Group, Inc. | 156,274 | 6,091,561 |
| ArcBest Corp. | 6,499 | 187,691 |
| Atlas Air Worldwide Holdings, Inc. * | 6,264 | 258,766 |
| Avis Budget Group, Inc. * | 23,236 | 1,025,405 |
| C.H. Robinson Worldwide, Inc. | 33,560 | 2,262,951 |
| Con-way, Inc. | 12,386 | 435,987 |
| CSX Corp. | 228,072 | 6,244,611 |
| Delta Air Lines, Inc. | 187,498 | 8,208,662 |
| Expeditors International of Washington, Inc. | 47,150 | 2,308,935 |
| FedEx Corp. | 59,831 | 9,011,147 |
| Forward Air Corp. | 8,200 | 369,164 |
| Genesee & Wyoming, Inc., Class A * | 10,250 | 700,895 |
| Hawaiian Holdings, Inc. * | 13,164 | 298,296 |
| Heartland Express, Inc. | 10,755 | 217,681 |
| Hertz Global Holdings, Inc. * | 100,750 | 1,856,822 |
| Hub Group, Inc., Class A * | 8,328 | 313,882 |
| J.B. Hunt Transport Services, Inc. | 21,238 | 1,545,702 |
| JetBlue Airways Corp. * | 63,550 | 1,418,436 |
| Kansas City Southern | 24,624 | 2,283,630 |
| Kirby Corp. * | 12,300 | 867,519 |
| Knight Transportation, Inc. | 10,250 | 278,800 |
| Landstar System, Inc. | 9,624 | 637,109 |
| Matson, Inc. | 10,250 | 386,220 |
| Norfolk Southern Corp. | 71,814 | 5,595,029 |
| Old Dominion Freight Line, Inc. * | 14,908 | 991,233 |
| Ryder System, Inc. | 12,300 | 1,008,231 |
| Saia, Inc. * | 5,240 | 196,762 |
| SkyWest, Inc. | 29,236 | 464,852 |
| Southwest Airlines Co. | 151,873 | 5,573,739 |
| Spirit Airlines, Inc. * | 16,625 | 852,031 |
| Swift Transportation Co. * | 25,149 | 490,154 |
| Union Pacific Corp. | 202,118 | 17,329,597 |
| United Continental Holdings, Inc. * | 86,282 | 4,915,486 |
| United Parcel Service, Inc., Class B | 158,775 | 15,504,379 |
| UTi Worldwide, Inc. * | 20,680 | 147,242 |
| Werner Enterprises, Inc. | 8,788 | 232,794 |
| Wesco Aircraft Holdings, Inc. * | 10,526 | 147,785 |
| XPO Logistics, Inc. *(a) | 17,628 | 618,743 |
| 105,247,507 | ||
| Utilities 3.0% | ||
| AES Corp. | 143,911 | 1,726,932 |
| AGL Resources, Inc. | 25,197 | 1,536,765 |
| ALLETE, Inc. | 10,250 | 489,745 |
| Alliant Energy Corp. | 24,600 | 1,394,082 |
| Ameren Corp. | 53,758 | 2,165,910 |
| American Electric Power Co., Inc. | 110,700 | 6,009,903 |
| American States Water Co. | 8,200 | 309,550 |
| American Water Works Co., Inc. | 38,953 | 2,023,219 |
| Aqua America, Inc. | 37,722 | 956,630 |
| Security | Number of Shares | Value ($) |
| Atmos Energy Corp. | 24,658 | 1,351,012 |
| Avista Corp. | 16,400 | 514,796 |
| Black Hills Corp. | 19,354 | 769,902 |
| California Water Service Group | 19,318 | 398,530 |
| Calpine Corp. * | 88,156 | 1,405,207 |
| CenterPoint Energy, Inc. | 94,859 | 1,766,275 |
| Chesapeake Utilities Corp. | 4,354 | 214,522 |
| Cleco Corp. | 17,476 | 936,364 |
| CMS Energy Corp. | 61,500 | 2,015,970 |
| Connecticut Water Service, Inc. | 4,354 | 151,301 |
| Consolidated Edison, Inc. | 65,600 | 4,126,896 |
| Dominion Resources, Inc. | 133,914 | 9,340,501 |
| DTE Energy Co. | 39,634 | 3,093,830 |
| Duke Energy Corp. | 160,495 | 11,380,700 |
| Dynegy, Inc. * | 22,782 | 586,636 |
| Edison International | 72,256 | 4,225,531 |
| El Paso Electric Co. | 10,250 | 362,850 |
| Entergy Corp. | 41,000 | 2,678,530 |
| Eversource Energy | 70,319 | 3,321,870 |
| Exelon Corp. | 193,080 | 5,939,141 |
| FirstEnergy Corp. | 94,380 | 3,016,385 |
| Great Plains Energy, Inc. | 33,306 | 829,986 |
| Hawaiian Electric Industries, Inc. | 28,704 | 811,462 |
| IDACORP, Inc. | 12,300 | 730,251 |
| ITC Holdings Corp. | 34,918 | 1,141,819 |
| MDU Resources Group, Inc. | 41,506 | 743,372 |
| MGE Energy, Inc. | 13,080 | 503,057 |
| Middlesex Water Co. | 4,372 | 99,507 |
| National Fuel Gas Co. | 18,536 | 1,000,203 |
| New Jersey Resources Corp. | 20,500 | 579,535 |
| NextEra Energy, Inc. | 98,814 | 9,724,286 |
| NiSource, Inc. | 75,693 | 1,270,885 |
| Northwest Natural Gas Co. | 8,200 | 360,636 |
| NorthWestern Corp. | 11,842 | 611,521 |
| NRG Energy, Inc. | 77,241 | 1,538,641 |
| NRG Yield, Inc., Class A (a) | 8,482 | 133,422 |
| NRG Yield, Inc., Class C (a) | 20,574 | 330,418 |
| OGE Energy Corp. | 45,948 | 1,288,382 |
| ONE Gas, Inc. | 11,189 | 480,791 |
| Ormat Technologies, Inc. | 8,615 | 303,248 |
| Otter Tail Corp. | 15,090 | 389,473 |
| Pattern Energy Group, Inc. | 8,516 | 193,058 |
| Pepco Holdings, Inc. | 57,692 | 1,325,762 |
| PG&E Corp. | 108,848 | 5,396,684 |
| Piedmont Natural Gas Co., Inc. | 18,898 | 729,085 |
| Pinnacle West Capital Corp. | 24,600 | 1,464,438 |
| PNM Resources, Inc. | 18,450 | 472,504 |
| Portland General Electric Co. | 16,400 | 566,456 |
| PPL Corp. | 147,888 | 4,583,049 |
| Public Service Enterprise Group, Inc. | 114,800 | 4,620,700 |
| Questar Corp. | 39,103 | 755,079 |
| SCANA Corp. | 32,852 | 1,737,542 |
| Sempra Energy | 53,392 | 5,064,231 |
| SJW Corp. | 9,065 | 260,528 |
| South Jersey Industries, Inc. | 16,400 | 395,240 |
| Southwest Gas Corp. | 10,250 | 564,672 |
| Talen Energy Corp. * | 18,472 | 263,226 |
| TECO Energy, Inc. | 52,566 | 1,107,566 |
| TerraForm Power, Inc., Class A * | 14,354 | 322,965 |
| The Empire District Electric Co. | 8,556 | 185,237 |
| The Laclede Group, Inc. | 10,690 | 565,929 |
18 See financial notes
Schwab U.S. Broad Market ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| The Southern Co. | 207,165 | 8,993,033 |
| UGI Corp. | 36,900 | 1,257,552 |
| UIL Holdings Corp. | 12,801 | 582,830 |
| Unitil Corp. | 6,610 | 238,026 |
| Vectren Corp. | 18,450 | 742,243 |
| WEC Energy Group, Inc. | 72,249 | 3,442,665 |
| Westar Energy, Inc. | 33,286 | 1,216,603 |
| WGL Holdings, Inc. | 12,300 | 666,660 |
| Xcel Energy, Inc. | 112,804 | 3,804,878 |
| 148,598,821 | ||
| Total Common Stock | ||
| (Cost $4,269,255,785) | 4,899,860,956 | |
| Rights 0.0% of net assets | ||
| Telecommunication Services 0.0% | ||
| Leap Wireless CVR *(c)(d) | 8,528 | 21,491 |
| Total Rights | ||
| (Cost $21,491) | 21,491 | |
| Other Investment Companies 0.6% of net assets | ||
| Money Market Fund 0.1% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (e) | 5,899,506 | 5,899,506 |
| Securities Lending Collateral 0.5% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (e) | 25,583,692 | 25,583,692 |
| Total Other Investment Companies | ||
| (Cost $31,483,198) | 31,483,198 | |
End of Investments
At 08/31/15, the tax basis cost of the fund's investments was $4,300,230,102 and the unrealized appreciation and depreciation were $805,877,326 and ($174,741,783), respectively, with a net unrealized appreciation of $631,135,543.
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $26,535,735. Non-cash collateral pledged to the fund for securities on loan amounted to $1,634,609. |
| (b) | Issuer is affiliated with the fund's adviser. |
| (c) | Illiquid security. At the period end, the value of these amounted to $21,491 or 0.0% of net assets. |
| (d) | Fair-valued by management in accordance with procedures approved by the Board of Trustees. |
| (e) | The rate shown is the 7-day yield. |
| CVR — | Contingent Value Rights |
| REIT — | Real Estate Investment Trust |
In addition to the above, the fund held the following at 08/31/15:
| Number of Contracts | Contract Value ($) | Unrealized Appreciation ($) | ||||
| Futures Contracts | ||||||
| S&P 500 Index, e-mini, Long, expires 09/18/15 | 100 | 9,846,000 | 2,558 | |||
See financial notes 19
Schwab U.S. Large-Cap ETF
Portfolio Holdings as of August 31, 2015
This section shows all the securities in the fund's portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be viewed and copied at the SEC's Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund's website at www.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.6% | Common Stock | 3,843,160,621 | 4,313,972,672 |
| 0.3% | Other Investment Companies | 12,914,422 | 12,914,422 |
| 99.9% | Total Investments | 3,856,075,043 | 4,326,887,094 |
| 0.1% | Other Assets and Liabilities, Net | 3,031,068 | |
| 100.0% | Net Assets | 4,329,918,162 | |
| Security | Number of Shares | Value ($) |
| Common Stock 99.6% of net assets | ||
| Automobiles & Components 1.1% | ||
| Autoliv, Inc. (a) | 21,027 | 2,147,908 |
| BorgWarner, Inc. | 50,030 | 2,183,309 |
| Delphi Automotive plc | 66,725 | 5,039,072 |
| Ford Motor Co. | 902,705 | 12,520,518 |
| General Motors Co. | 311,794 | 9,179,215 |
| Harley-Davidson, Inc. | 49,515 | 2,775,316 |
| Johnson Controls, Inc. | 147,360 | 6,062,391 |
| Lear Corp. | 17,361 | 1,784,537 |
| Tesla Motors, Inc. * | 22,251 | 5,541,834 |
| The Goodyear Tire & Rubber Co. | 61,206 | 1,822,103 |
| 49,056,203 | ||
| Banks 5.9% | ||
| Bank of America Corp. | 2,392,294 | 39,090,084 |
| BB&T Corp. | 177,014 | 6,535,357 |
| BOK Financial Corp. | 4,004 | 253,373 |
| CIT Group, Inc. | 40,397 | 1,754,846 |
| Citigroup, Inc. | 693,418 | 37,083,995 |
| Citizens Financial Group, Inc. | 92,230 | 2,289,148 |
| Comerica, Inc. | 40,469 | 1,780,636 |
| Cullen/Frost Bankers, Inc. | 11,315 | 731,628 |
| Fifth Third Bancorp | 189,156 | 3,767,987 |
| First Republic Bank | 30,660 | 1,849,105 |
| Hudson City Bancorp, Inc. | 101,093 | 940,165 |
| Huntington Bancshares, Inc. | 181,398 | 1,979,052 |
| JPMorgan Chase & Co. | 843,890 | 54,093,349 |
| KeyCorp | 201,868 | 2,773,666 |
| M&T Bank Corp. | 29,795 | 3,522,961 |
| New York Community Bancorp, Inc. | 97,218 | 1,716,870 |
| People's United Financial, Inc. | 69,780 | 1,081,590 |
| Regions Financial Corp. | 301,137 | 2,887,904 |
| SunTrust Banks, Inc. | 115,858 | 4,677,187 |
| Security | Number of Shares | Value ($) |
| The PNC Financial Services Group, Inc. | 118,515 | 10,799,087 |
| U.S. Bancorp | 404,143 | 17,115,456 |
| Wells Fargo & Co. | 1,070,833 | 57,107,524 |
| Zions Bancorp | 51,055 | 1,480,595 |
| 255,311,565 | ||
| Capital Goods 7.2% | ||
| 3M Co. | 143,751 | 20,432,767 |
| AGCO Corp. | 19,218 | 942,451 |
| Allison Transmission Holdings, Inc. | 36,814 | 1,052,880 |
| AMETEK, Inc. | 54,015 | 2,907,087 |
| B/E Aerospace, Inc. | 25,048 | 1,221,090 |
| Carlisle Cos., Inc. | 15,742 | 1,585,219 |
| Caterpillar, Inc. | 137,270 | 10,492,919 |
| Chicago Bridge & Iron Co. N.V. (a) | 23,636 | 1,046,602 |
| Colfax Corp. * | 20,489 | 794,768 |
| Cummins, Inc. | 38,672 | 4,708,316 |
| Danaher Corp. | 140,583 | 12,233,533 |
| Deere & Co. | 77,244 | 6,317,014 |
| Donaldson Co., Inc. | 29,596 | 926,651 |
| Dover Corp. | 37,204 | 2,304,788 |
| Eaton Corp. plc | 106,691 | 6,087,788 |
| Emerson Electric Co. | 154,342 | 7,365,200 |
| Fastenal Co. | 60,692 | 2,339,070 |
| Flowserve Corp. | 30,082 | 1,357,601 |
| Fluor Corp. | 32,114 | 1,465,041 |
| Fortune Brands Home & Security, Inc. | 37,143 | 1,777,293 |
| General Dynamics Corp. | 70,928 | 10,073,904 |
| General Electric Co. | 2,293,483 | 56,924,248 |
| Honeywell International, Inc. | 178,756 | 17,745,108 |
| Hubbell, Inc., Class B | 11,561 | 1,140,724 |
| IDEX Corp. | 19,506 | 1,401,116 |
| Illinois Tool Works, Inc. | 77,375 | 6,540,509 |
| Ingersoll-Rand plc | 59,491 | 3,289,257 |
| Jacobs Engineering Group, Inc. * | 29,543 | 1,193,833 |
| Joy Global, Inc. | 25,784 | 624,488 |
| KLX, Inc. * | 11,718 | 458,174 |
| L-3 Communications Holdings, Inc. | 19,022 | 2,006,250 |
| Lincoln Electric Holdings, Inc. | 18,320 | 1,074,468 |
| Lockheed Martin Corp. | 60,592 | 12,189,899 |
| Masco Corp. | 80,616 | 2,114,558 |
| MSC Industrial Direct Co., Inc., Class A | 10,050 | 680,285 |
| Nordson Corp. | 13,109 | 872,011 |
| Northrop Grumman Corp. | 44,095 | 7,220,115 |
| Oshkosh Corp. | 18,711 | 786,798 |
| Owens Corning | 29,615 | 1,311,648 |
| PACCAR, Inc. | 78,776 | 4,645,421 |
| Parker-Hannifin Corp. | 30,952 | 3,332,292 |
| Pentair plc | 40,477 | 2,237,973 |
| Precision Castparts Corp. | 31,284 | 7,203,141 |
| Quanta Services, Inc. * | 48,225 | 1,168,974 |
| Raytheon Co. | 68,394 | 7,014,489 |
| Rockwell Automation, Inc. | 29,744 | 3,326,272 |
| Rockwell Collins, Inc. | 29,638 | 2,425,870 |
| Roper Technologies, Inc. | 22,633 | 3,668,583 |
| Sensata Technologies Holding N.V. * | 36,859 | 1,747,117 |
| Snap-on, Inc. | 12,830 | 2,049,849 |
| SolarCity Corp. *(a) | 10,992 | 530,694 |
20 See financial notes
Schwab U.S. Large-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| SPX Corp. | 9,613 | 564,571 |
| Stanley Black & Decker, Inc. | 35,092 | 3,562,540 |
| Textron, Inc. | 62,358 | 2,419,490 |
| The Boeing Co. | 145,804 | 19,053,667 |
| The Timken Co. | 16,872 | 535,686 |
| TransDigm Group, Inc. * | 11,212 | 2,576,854 |
| Trinity Industries, Inc. | 34,858 | 940,817 |
| United Rentals, Inc. * | 22,682 | 1,572,543 |
| United Technologies Corp. | 189,945 | 17,400,861 |
| W.W. Grainger, Inc. | 13,278 | 2,966,836 |
| WABCO Holdings, Inc. * | 13,116 | 1,512,537 |
| Wabtec Corp. | 21,059 | 2,016,610 |
| Xylem, Inc. | 40,412 | 1,311,369 |
| 310,790,527 | ||
| Commercial & Professional Services 0.8% | ||
| Cintas Corp. | 22,368 | 1,901,056 |
| Copart, Inc. * | 24,597 | 861,387 |
| Equifax, Inc. | 28,810 | 2,820,499 |
| IHS, Inc., Class A * | 15,045 | 1,745,521 |
| ManpowerGroup, Inc. | 19,570 | 1,700,633 |
| Nielsen Holdings plc | 85,580 | 3,870,783 |
| Republic Services, Inc. | 56,534 | 2,316,763 |
| Robert Half International, Inc. | 30,450 | 1,553,863 |
| Rollins, Inc. | 25,192 | 703,361 |
| Stericycle, Inc. * | 18,908 | 2,668,675 |
| The ADT Corp. | 37,229 | 1,220,367 |
| The Dun & Bradstreet Corp. | 7,330 | 776,760 |
| Towers Watson & Co., Class A | 15,442 | 1,833,429 |
| Tyco International plc | 95,988 | 3,483,405 |
| Verisk Analytics, Inc. * | 36,208 | 2,646,081 |
| Waste Connections, Inc. | 29,638 | 1,409,583 |
| Waste Management, Inc. | 96,005 | 4,806,010 |
| 36,318,176 | ||
| Consumer Durables & Apparel 1.6% | ||
| Carter's, Inc. | 12,982 | 1,276,260 |
| Coach, Inc. | 62,399 | 1,887,570 |
| D.R. Horton, Inc. | 72,011 | 2,186,974 |
| Fossil Group, Inc. * | 9,982 | 614,692 |
| Garmin Ltd. | 26,549 | 998,508 |
| Hanesbrands, Inc. | 89,216 | 2,686,294 |
| Harman International Industries, Inc. | 16,840 | 1,645,942 |
| Hasbro, Inc. | 25,648 | 1,913,084 |
| Jarden Corp. * | 43,547 | 2,235,703 |
| Leggett & Platt, Inc. | 31,144 | 1,383,416 |
| Lennar Corp., Class A | 42,724 | 2,174,652 |
| lululemon athletica, Inc. * | 22,818 | 1,460,580 |
| Mattel, Inc. | 73,785 | 1,728,782 |
| Michael Kors Holdings Ltd. * | 45,836 | 1,992,033 |
| Mohawk Industries, Inc. * | 13,456 | 2,650,428 |
| Newell Rubbermaid, Inc. | 58,686 | 2,472,441 |
| NIKE, Inc., Class B | 159,178 | 17,788,141 |
| NVR, Inc. * | 784 | 1,191,641 |
| Polaris Industries, Inc. | 14,267 | 1,852,855 |
| PulteGroup, Inc. | 78,862 | 1,631,655 |
| PVH Corp. | 18,542 | 2,206,127 |
| Ralph Lauren Corp. | 14,746 | 1,639,608 |
| Toll Brothers, Inc. * | 39,086 | 1,445,009 |
| TopBuild Corp. * | 8,947 | 283,799 |
| Security | Number of Shares | Value ($) |
| Under Armour, Inc., Class A * | 37,056 | 3,539,960 |
| VF Corp. | 77,376 | 5,604,344 |
| Whirlpool Corp. | 18,258 | 3,069,170 |
| 69,559,668 | ||
| Consumer Services 2.1% | ||
| Aramark | 46,115 | 1,445,244 |
| Carnival Corp. | 102,791 | 5,060,401 |
| Chipotle Mexican Grill, Inc. * | 6,891 | 4,892,679 |
| Darden Restaurants, Inc. | 27,932 | 1,899,655 |
| Dunkin' Brands Group, Inc. | 22,787 | 1,142,996 |
| Extended Stay America, Inc. | 13,098 | 245,849 |
| H&R Block, Inc. | 66,728 | 2,270,087 |
| Hilton Worldwide Holdings, Inc. | 120,116 | 2,982,480 |
| Hyatt Hotels Corp., Class A * | 13,243 | 678,439 |
| Las Vegas Sands Corp. | 85,902 | 3,971,250 |
| Marriott International, Inc., Class A | 47,064 | 3,325,542 |
| McDonald's Corp. | 219,217 | 20,829,999 |
| MGM Resorts International * | 95,004 | 1,940,932 |
| Norwegian Cruise Line Holdings Ltd. * | 31,335 | 1,804,896 |
| Royal Caribbean Cruises Ltd. | 38,035 | 3,353,166 |
| Starbucks Corp. | 345,569 | 18,906,080 |
| Starwood Hotels & Resorts Worldwide, Inc. | 39,218 | 2,802,910 |
| Wyndham Worldwide Corp. | 26,606 | 2,034,827 |
| Wynn Resorts Ltd. | 18,814 | 1,411,991 |
| Yum! Brands, Inc. | 98,965 | 7,894,438 |
| 88,893,861 | ||
| Diversified Financials 5.0% | ||
| Affiliated Managers Group, Inc. * | 12,011 | 2,239,331 |
| Ally Financial, Inc. * | 97,827 | 2,138,498 |
| American Express Co. | 198,085 | 15,197,081 |
| Ameriprise Financial, Inc. | 41,265 | 4,649,328 |
| Berkshire Hathaway, Inc., Class B * | 415,706 | 55,721,232 |
| BlackRock, Inc. | 28,616 | 8,655,482 |
| Capital One Financial Corp. | 125,031 | 9,721,160 |
| CME Group, Inc. | 73,893 | 6,978,455 |
| Discover Financial Services | 101,355 | 5,445,804 |
| Eaton Vance Corp. | 27,544 | 954,951 |
| Franklin Resources, Inc. | 92,697 | 3,761,644 |
| Intercontinental Exchange, Inc. | 24,871 | 5,680,785 |
| Invesco Ltd. | 96,128 | 3,278,926 |
| Lazard Ltd., Class A | 29,728 | 1,478,373 |
| Legg Mason, Inc. | 22,280 | 987,672 |
| LendingClub Corp. * | 13,098 | 164,380 |
| Leucadia National Corp. | 78,278 | 1,679,846 |
| LPL Financial Holdings, Inc. (a) | 17,220 | 692,588 |
| McGraw Hill Financial, Inc. | 62,724 | 6,083,601 |
| Moody's Corp. | 40,798 | 4,174,043 |
| Morgan Stanley | 351,823 | 12,120,302 |
| MSCI, Inc. | 24,102 | 1,458,653 |
| Navient Corp. | 83,882 | 1,072,851 |
| Northern Trust Corp. | 49,772 | 3,476,077 |
| Raymond James Financial, Inc. | 28,626 | 1,516,892 |
| Santander Consumer USA Holdings, Inc. * | 22,702 | 509,887 |
| SEI Investments Co. | 31,818 | 1,609,354 |
| State Street Corp. | 92,714 | 6,667,991 |
See financial notes 21
Schwab U.S. Large-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Synchrony Financial * | 27,730 | 913,704 |
| T. Rowe Price Group, Inc. | 58,974 | 4,239,051 |
| TD Ameritrade Holding Corp. | 61,008 | 2,041,328 |
| The Bank of New York Mellon Corp. | 254,648 | 10,134,990 |
| The Charles Schwab Corp. (b) | 266,524 | 8,096,999 |
| The Goldman Sachs Group, Inc. | 92,050 | 17,360,630 |
| The NASDAQ OMX Group, Inc. | 28,208 | 1,443,968 |
| Voya Financial, Inc. | 48,852 | 2,104,544 |
| 214,450,401 | ||
| Energy 7.0% | ||
| Anadarko Petroleum Corp. | 117,897 | 8,439,067 |
| Antero Resources Corp. *(a) | 27,958 | 722,435 |
| Apache Corp. | 86,317 | 3,904,981 |
| Baker Hughes, Inc. | 97,401 | 5,454,456 |
| Cabot Oil & Gas Corp. | 95,305 | 2,255,869 |
| Cameron International Corp. * | 46,330 | 3,092,991 |
| Cheniere Energy, Inc. * | 50,147 | 3,116,636 |
| Chevron Corp. | 429,861 | 34,814,442 |
| Cimarex Energy Co. | 21,588 | 2,385,690 |
| Cobalt International Energy, Inc. * | 64,907 | 519,905 |
| Columbia Pipeline Group, Inc. | 70,340 | 1,783,822 |
| Concho Resources, Inc. * | 27,379 | 2,961,313 |
| ConocoPhillips | 280,888 | 13,805,645 |
| Continental Resources, Inc. * | 18,648 | 598,601 |
| Core Laboratories N.V. (a) | 9,749 | 1,127,764 |
| CVR Energy, Inc. | 7,042 | 283,159 |
| Denbury Resources, Inc. | 59,748 | 259,306 |
| Devon Energy Corp. | 92,880 | 3,962,261 |
| Diamond Offshore Drilling, Inc. (a) | 16,424 | 389,413 |
| Ensco plc, Class A | 53,349 | 966,150 |
| EOG Resources, Inc. | 129,763 | 10,161,741 |
| EQT Corp. | 36,009 | 2,802,220 |
| Exxon Mobil Corp. | 952,290 | 71,650,300 |
| FMC Technologies, Inc. * | 53,128 | 1,847,792 |
| Halliburton Co. | 198,679 | 7,818,019 |
| Helmerich & Payne, Inc. | 24,633 | 1,453,593 |
| Hess Corp. | 54,055 | 3,213,570 |
| HollyFrontier Corp. | 46,207 | 2,165,260 |
| Kinder Morgan, Inc. | 394,017 | 12,770,091 |
| Marathon Oil Corp. | 155,446 | 2,687,661 |
| Marathon Petroleum Corp. | 125,356 | 5,930,592 |
| Murphy Oil Corp. | 38,730 | 1,200,630 |
| Nabors Industries Ltd. | 66,784 | 770,687 |
| National Oilwell Varco, Inc. | 86,566 | 3,664,339 |
| Noble Corp. plc | 55,080 | 717,142 |
| Noble Energy, Inc. | 98,208 | 3,281,129 |
| Oasis Petroleum, Inc. *(a) | 33,074 | 369,106 |
| Occidental Petroleum Corp. | 174,970 | 12,774,560 |
| Oceaneering International, Inc. | 23,817 | 1,043,661 |
| ONEOK, Inc. | 46,118 | 1,660,709 |
| Peabody Energy Corp. (a) | 201,540 | 544,158 |
| Phillips 66 | 123,578 | 9,771,312 |
| Pioneer Natural Resources Co. | 34,096 | 4,195,854 |
| QEP Resources, Inc. | 38,400 | 539,136 |
| Range Resources Corp. | 36,640 | 1,415,037 |
| Schlumberger Ltd. | 288,775 | 22,342,522 |
| SM Energy Co. | 17,816 | 653,847 |
| Southwestern Energy Co. * | 88,330 | 1,434,479 |
| Spectra Energy Corp. | 152,725 | 4,439,716 |
| Superior Energy Services, Inc. | 34,808 | 553,795 |
| Security | Number of Shares | Value ($) |
| Tesoro Corp. | 28,559 | 2,627,714 |
| The Williams Cos., Inc. | 153,304 | 7,389,253 |
| Transocean Ltd. (a) | 77,664 | 1,105,159 |
| Valero Energy Corp. | 115,551 | 6,856,796 |
| Weatherford International plc * | 171,159 | 1,737,264 |
| 304,432,750 | ||
| Food & Staples Retailing 2.3% | ||
| Costco Wholesale Corp. | 99,904 | 13,991,555 |
| CVS Health Corp. | 257,125 | 26,329,600 |
| Sprouts Farmers Market, Inc. * | 35,509 | 723,318 |
| Sysco Corp. | 132,308 | 5,275,120 |
| The Kroger Co. | 221,983 | 7,658,414 |
| Wal-Mart Stores, Inc. | 361,151 | 23,377,304 |
| Walgreens Boots Alliance, Inc. | 198,740 | 17,200,947 |
| Whole Foods Market, Inc. | 82,531 | 2,703,716 |
| 97,259,974 | ||
| Food, Beverage & Tobacco 5.1% | ||
| Altria Group, Inc. | 454,595 | 24,357,200 |
| Archer-Daniels-Midland Co. | 142,412 | 6,407,116 |
| Brown-Forman Corp., Class B | 35,433 | 3,475,977 |
| Bunge Ltd. | 32,038 | 2,321,153 |
| Campbell Soup Co. | 38,899 | 1,866,763 |
| Coca-Cola Enterprises, Inc. | 49,517 | 2,549,630 |
| ConAgra Foods, Inc. | 93,844 | 3,911,418 |
| Constellation Brands, Inc., Class A | 37,864 | 4,846,592 |
| Dr. Pepper Snapple Group, Inc. | 44,182 | 3,390,085 |
| Flowers Foods, Inc. | 40,789 | 946,713 |
| General Mills, Inc. | 136,644 | 7,755,913 |
| Hormel Foods Corp. | 31,158 | 1,903,754 |
| Ingredion, Inc. | 17,173 | 1,482,717 |
| Kellogg Co. | 57,150 | 3,787,902 |
| Keurig Green Mountain, Inc. | 26,196 | 1,482,694 |
| McCormick & Co., Inc. Non-Voting Shares | 29,312 | 2,323,855 |
| Mead Johnson Nutrition Co. | 46,436 | 3,637,796 |
| Molson Coors Brewing Co., Class B | 38,005 | 2,587,761 |
| Mondelez International, Inc., Class A | 367,420 | 15,563,911 |
| Monster Beverage Corp. * | 33,533 | 4,642,979 |
| PepsiCo, Inc. | 336,501 | 31,271,038 |
| Philip Morris International, Inc. | 353,758 | 28,229,888 |
| Pilgrim's Pride Corp. (a) | 10,070 | 211,218 |
| Reynolds American, Inc. | 94,017 | 7,873,924 |
| The Coca-Cola Co. | 897,792 | 35,301,182 |
| The Hershey Co. | 33,137 | 2,966,424 |
| The J.M. Smucker Co. | 22,663 | 2,667,888 |
| The Kraft Heinz Co. | 135,131 | 9,818,619 |
| Tyson Foods, Inc., Class A | 65,182 | 2,755,895 |
| 220,338,005 | ||
| Health Care Equipment & Services 5.0% | ||
| Abbott Laboratories | 341,300 | 15,457,477 |
| Aetna, Inc. | 80,100 | 9,173,052 |
| AmerisourceBergen Corp. | 47,909 | 4,792,816 |
| Anthem, Inc. | 59,652 | 8,413,915 |
| Baxter International, Inc. | 121,953 | 4,689,093 |
| Becton Dickinson & Co. | 48,461 | 6,833,970 |
| Boston Scientific Corp. * | 306,647 | 5,133,271 |
| C.R. Bard, Inc. | 17,076 | 3,309,158 |
22 See financial notes
Schwab U.S. Large-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Cardinal Health, Inc. | 75,420 | 6,204,803 |
| Cerner Corp. * | 70,041 | 4,325,732 |
| Cigna Corp. | 58,884 | 8,290,278 |
| Community Health Systems, Inc. * | 26,481 | 1,422,030 |
| DaVita HealthCare Partners, Inc. * | 38,811 | 2,935,664 |
| DENTSPLY International, Inc. | 32,996 | 1,729,320 |
| Edwards Lifesciences Corp. * | 24,187 | 3,407,465 |
| Envision Healthcare Holdings, Inc. * | 39,584 | 1,621,756 |
| Express Scripts Holding Co. * | 153,611 | 12,841,880 |
| HCA Holdings, Inc. * | 67,072 | 5,809,777 |
| Henry Schein, Inc. * | 18,746 | 2,564,640 |
| Hologic, Inc. * | 57,225 | 2,220,902 |
| Humana, Inc. | 33,767 | 6,172,270 |
| IDEXX Laboratories, Inc. * | 22,564 | 1,612,649 |
| IMS Health Holdings, Inc. * | 35,109 | 1,048,706 |
| Intuitive Surgical, Inc. * | 8,479 | 4,332,345 |
| Laboratory Corp. of America Holdings * | 22,597 | 2,662,153 |
| McKesson Corp. | 52,462 | 10,365,442 |
| MEDNAX, Inc. * | 22,824 | 1,838,473 |
| Medtronic plc | 322,984 | 23,348,513 |
| Patterson Cos., Inc. | 18,997 | 870,633 |
| Premier, Inc., Class A * | 6,008 | 214,185 |
| Quest Diagnostics, Inc. | 33,266 | 2,255,435 |
| ResMed, Inc. | 30,170 | 1,567,030 |
| Sirona Dental Systems, Inc. * | 13,110 | 1,250,432 |
| St. Jude Medical, Inc. | 64,129 | 4,540,974 |
| Stryker Corp. | 68,217 | 6,729,607 |
| Tenet Healthcare Corp. * | 24,387 | 1,200,572 |
| The Cooper Cos., Inc. | 11,304 | 1,835,996 |
| UnitedHealth Group, Inc. | 216,691 | 25,071,149 |
| Universal Health Services, Inc., Class B | 20,705 | 2,839,484 |
| Varian Medical Systems, Inc. * | 21,156 | 1,718,925 |
| Zimmer Biomet Holdings, Inc. | 37,470 | 3,880,393 |
| 216,532,365 | ||
| Household & Personal Products 1.8% | ||
| Avon Products, Inc. | 105,842 | 549,320 |
| Church & Dwight Co., Inc. | 29,838 | 2,574,423 |
| Colgate-Palmolive Co. | 199,329 | 12,519,855 |
| Coty, Inc., Class A * | 15,100 | 457,681 |
| Edgewell Personal Care Co. | 13,520 | 1,190,571 |
| Energizer Holdings, Inc. | 13,520 | 564,595 |
| Herbalife Ltd. *(a) | 18,055 | 1,039,426 |
| Kimberly-Clark Corp. | 82,852 | 8,826,224 |
| The Clorox Co. | 30,054 | 3,341,103 |
| The Estee Lauder Cos., Inc., Class A | 50,104 | 3,996,796 |
| The Procter & Gamble Co. | 618,730 | 43,725,649 |
| 78,785,643 | ||
| Insurance 3.1% | ||
| ACE Ltd. | 73,645 | 7,523,573 |
| Aflac, Inc. | 100,822 | 5,908,169 |
| Alleghany Corp. * | 3,763 | 1,767,820 |
| American Financial Group, Inc. | 16,679 | 1,151,852 |
| American International Group, Inc. | 301,860 | 18,214,232 |
| Aon plc | 64,273 | 6,005,669 |
| Arch Capital Group Ltd. * | 30,019 | 2,049,697 |
| Arthur J. Gallagher & Co. | 39,267 | 1,716,753 |
| Security | Number of Shares | Value ($) |
| Axis Capital Holdings Ltd. | 22,144 | 1,240,064 |
| Brown & Brown, Inc. | 27,817 | 891,813 |
| Cincinnati Financial Corp. | 34,035 | 1,781,052 |
| CNA Financial Corp. | 7,500 | 269,850 |
| Erie Indemnity Co., Class A | 5,565 | 456,163 |
| Everest Re Group Ltd. | 9,969 | 1,752,650 |
| FNF Group | 60,849 | 2,215,512 |
| Genworth Financial, Inc., Class A * | 124,402 | 644,402 |
| HCC Insurance Holdings, Inc. | 22,718 | 1,755,420 |
| Lincoln National Corp. | 57,196 | 2,904,985 |
| Loews Corp. | 66,520 | 2,424,654 |
| Markel Corp. * | 3,095 | 2,549,506 |
| Marsh & McLennan Cos., Inc. | 123,051 | 6,611,530 |
| MetLife, Inc. | 255,808 | 12,815,981 |
| PartnerRe Ltd. | 11,063 | 1,531,230 |
| Principal Financial Group, Inc. | 60,920 | 3,067,322 |
| Prudential Financial, Inc. | 103,309 | 8,337,036 |
| Reinsurance Group of America, Inc. | 14,988 | 1,362,110 |
| RenaissanceRe Holdings Ltd. | 9,736 | 992,585 |
| The Allstate Corp. | 92,279 | 5,378,020 |
| The Chubb Corp. | 51,513 | 6,223,286 |
| The Hartford Financial Services Group, Inc. | 95,585 | 4,392,131 |
| The Progressive Corp. | 125,203 | 3,751,082 |
| The Travelers Cos., Inc. | 72,062 | 7,173,772 |
| Torchmark Corp. | 28,474 | 1,664,590 |
| Unum Group | 55,906 | 1,875,087 |
| W.R. Berkley Corp. | 24,100 | 1,308,148 |
| Willis Group Holdings plc | 39,204 | 1,689,300 |
| XL Group plc | 69,030 | 2,574,129 |
| 133,971,175 | ||
| Materials 3.0% | ||
| Air Products & Chemicals, Inc. | 45,931 | 6,408,752 |
| Airgas, Inc. | 15,255 | 1,472,413 |
| Albemarle Corp. | 25,250 | 1,141,553 |
| Alcoa, Inc. | 299,996 | 2,834,962 |
| Ashland, Inc. | 13,520 | 1,419,194 |
| Avery Dennison Corp. | 20,912 | 1,214,569 |
| Axalta Coating Systems Ltd. * | 19,630 | 573,000 |
| Ball Corp. | 31,593 | 2,082,295 |
| Celanese Corp., Series A | 34,818 | 2,111,364 |
| CF Industries Holdings, Inc. | 53,392 | 3,063,633 |
| Crown Holdings, Inc. * | 31,164 | 1,544,799 |
| E.I. du Pont de Nemours & Co. | 205,362 | 10,576,143 |
| Eastman Chemical Co. | 35,064 | 2,540,737 |
| Ecolab, Inc. | 60,841 | 6,640,187 |
| FMC Corp. | 29,691 | 1,256,226 |
| Freeport-McMoRan, Inc. | 116,285 | 1,237,272 |
| Huntsman Corp. | 42,206 | 697,665 |
| International Flavors & Fragrances, Inc. | 18,320 | 2,006,956 |
| International Paper Co. | 94,814 | 4,090,276 |
| LyondellBasell Industries N.V., Class A | 90,188 | 7,700,251 |
| Martin Marietta Materials, Inc. | 13,339 | 2,238,284 |
| Monsanto Co. | 108,426 | 10,587,799 |
| Newmont Mining Corp. | 124,764 | 2,129,722 |
| Nucor Corp. | 72,024 | 3,117,919 |
| Owens-Illinois, Inc. * | 38,852 | 810,064 |
| Packaging Corp. of America | 24,353 | 1,634,330 |
See financial notes 23
Schwab U.S. Large-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| PPG Industries, Inc. | 60,674 | 5,781,625 |
| Praxair, Inc. | 65,517 | 6,928,423 |
| Reliance Steel & Aluminum Co. | 17,033 | 989,958 |
| Royal Gold, Inc. | 16,860 | 811,303 |
| RPM International, Inc. | 28,177 | 1,235,561 |
| Sealed Air Corp. | 47,082 | 2,422,369 |
| Sigma-Aldrich Corp. | 27,592 | 3,846,601 |
| The Chemours Co. | 41,068 | 397,128 |
| The Dow Chemical Co. | 245,804 | 10,756,383 |
| The Mosaic Co. | 68,279 | 2,787,832 |
| The Sherwin-Williams Co. | 17,846 | 4,565,185 |
| The Valspar Corp. | 19,266 | 1,412,198 |
| Vulcan Materials Co. | 30,963 | 2,898,756 |
| W.R. Grace & Co. * | 16,745 | 1,656,750 |
| Westlake Chemical Corp. | 9,294 | 513,308 |
| WestRock Co. | 60,192 | 3,572,395 |
| 131,706,140 | ||
| Media 3.4% | ||
| AMC Networks, Inc., Class A * | 13,536 | 979,736 |
| Cablevision Systems Corp., Class A | 50,376 | 1,267,964 |
| CBS Corp., Class B Non-Voting Shares | 102,725 | 4,647,279 |
| Charter Communications, Inc., Class A *(a) | 19,542 | 3,549,023 |
| Comcast Corp., Class A | 574,175 | 32,343,278 |
| Discovery Communications, Inc., Class A *(a) | 33,061 | 879,423 |
| Discovery Communications, Inc., Class C * | 60,891 | 1,544,196 |
| DISH Network Corp., Class A * | 49,151 | 2,913,180 |
| Gannett Co., Inc. * | 25,974 | 340,519 |
| Liberty Global plc LiLAC, Class A * | 2,844 | 97,748 |
| Liberty Global plc LiLAC, Class C * | 6,737 | 224,005 |
| Liberty Global plc, Class A * | 57,015 | 2,743,562 |
| Liberty Global plc, Series C * | 134,885 | 6,052,290 |
| Liberty Media Corp., Class A * | 22,390 | 834,027 |
| Liberty Media Corp., Class C * | 44,780 | 1,621,932 |
| News Corp., Class A * | 110,107 | 1,500,758 |
| Omnicom Group, Inc. | 54,193 | 3,629,847 |
| Scripps Networks Interactive, Inc., Class A | 21,452 | 1,138,887 |
| Sirius XM Holdings, Inc. * | 574,361 | 2,191,187 |
| TEGNA, Inc. | 51,949 | 1,235,867 |
| The Interpublic Group of Cos., Inc. | 93,479 | 1,764,883 |
| The Madison Square Garden Co., Class A * | 12,921 | 910,155 |
| The Walt Disney Co. | 356,323 | 36,302,187 |
| Time Warner Cable, Inc. | 64,182 | 11,939,136 |
| Time Warner, Inc. | 188,209 | 13,381,660 |
| Tribune Media Co., Class A | 22,764 | 909,194 |
| Twenty-First Century Fox, Inc., Class A | 400,383 | 10,966,490 |
| Viacom, Inc., Class B | 80,074 | 3,264,617 |
| 149,173,030 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 9.9% | ||
| AbbVie, Inc. | 389,880 | 24,332,411 |
| Agilent Technologies, Inc. | 76,166 | 2,765,588 |
| Alexion Pharmaceuticals, Inc. * | 50,837 | 8,753,623 |
| Security | Number of Shares | Value ($) |
| Allergan plc * | 89,340 | 27,136,132 |
| Amgen, Inc. | 172,735 | 26,217,718 |
| Baxalta, Inc. * | 129,141 | 4,539,306 |
| Biogen, Inc. * | 53,854 | 16,010,794 |
| BioMarin Pharmaceutical, Inc. * | 37,306 | 4,821,427 |
| Bristol-Myers Squibb Co. | 378,212 | 22,492,268 |
| Celgene Corp. * | 181,740 | 21,459,859 |
| Eli Lilly & Co. | 223,120 | 18,373,932 |
| Endo International plc * | 46,261 | 3,562,097 |
| Gilead Sciences, Inc. | 334,470 | 35,142,763 |
| Hospira, Inc. * | 41,075 | 3,695,518 |
| Illumina, Inc. * | 32,918 | 6,504,926 |
| Incyte Corp. * | 38,251 | 4,444,384 |
| Jazz Pharmaceuticals plc * | 14,574 | 2,460,383 |
| Johnson & Johnson | 631,165 | 59,316,887 |
| Mallinckrodt plc * | 27,088 | 2,336,069 |
| Medivation, Inc. * | 17,670 | 1,556,020 |
| Merck & Co., Inc. | 643,817 | 34,669,545 |
| Mettler-Toledo International, Inc. * | 6,106 | 1,810,734 |
| Mylan N.V. * | 92,355 | 4,579,884 |
| PerkinElmer, Inc. | 25,652 | 1,248,739 |
| Perrigo Co., plc | 33,250 | 6,083,753 |
| Pfizer, Inc. | 1,409,674 | 45,419,696 |
| Puma Biotechnology, Inc. * | 3,014 | 277,047 |
| Quintiles Transnational Holdings, Inc. * | 22,544 | 1,679,753 |
| Regeneron Pharmaceuticals, Inc. * | 17,057 | 8,758,770 |
| Seattle Genetics, Inc. * | 24,208 | 974,856 |
| Thermo Fisher Scientific, Inc. | 89,861 | 11,265,874 |
| Vertex Pharmaceuticals, Inc. * | 55,691 | 7,101,716 |
| Waters Corp. * | 18,671 | 2,266,286 |
| Zoetis, Inc. | 115,661 | 5,189,709 |
| 427,248,467 | ||
| Real Estate 3.2% | ||
| Alexandria Real Estate Equities, Inc. | 15,262 | 1,312,379 |
| American Campus Communities, Inc. | 28,905 | 989,996 |
| American Capital Agency Corp. | 76,594 | 1,465,243 |
| American Tower Corp. | 97,123 | 8,953,769 |
| Annaly Capital Management, Inc. | 212,194 | 2,134,672 |
| Apartment Investment & Management Co., Class A | 38,019 | 1,369,824 |
| AvalonBay Communities, Inc. | 30,649 | 5,058,924 |
| Boston Properties, Inc. | 35,602 | 4,036,555 |
| Brixmor Property Group, Inc. | 34,256 | 781,722 |
| Camden Property Trust | 18,320 | 1,319,590 |
| Care Capital Properties, Inc. * | 18,519 | 588,719 |
| CBRE Group, Inc., Class A * | 60,999 | 1,953,188 |
| Corrections Corp. of America | 24,191 | 710,732 |
| Crown Castle International Corp. | 78,305 | 6,529,854 |
| DDR Corp. | 68,413 | 1,046,035 |
| Digital Realty Trust, Inc. | 31,327 | 1,983,626 |
| Duke Realty Corp. | 81,050 | 1,463,763 |
| Equinix, Inc. | 13,052 | 3,521,038 |
| Equity Residential | 83,528 | 5,951,370 |
| Essex Property Trust, Inc. | 14,239 | 3,055,974 |
| Extra Space Storage, Inc. | 27,388 | 2,012,470 |
| Federal Realty Investment Trust | 17,203 | 2,220,563 |
| General Growth Properties, Inc. | 140,018 | 3,553,657 |
| HCP, Inc. | 106,927 | 3,962,715 |
| Health Care REIT, Inc. | 79,888 | 5,060,905 |
24 See financial notes
Schwab U.S. Large-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Host Hotels & Resorts, Inc. | 174,906 | 3,101,083 |
| Iron Mountain, Inc. | 43,653 | 1,237,126 |
| Jones Lang LaSalle, Inc. | 11,197 | 1,666,897 |
| Kilroy Realty Corp. | 22,364 | 1,450,529 |
| Kimco Realty Corp. | 89,811 | 2,070,143 |
| Lamar Advertising Co., Class A | 17,515 | 934,250 |
| Liberty Property Trust | 38,066 | 1,170,149 |
| National Retail Properties, Inc. | 27,619 | 959,760 |
| Plum Creek Timber Co., Inc. | 40,571 | 1,561,578 |
| Prologis, Inc. | 120,867 | 4,592,946 |
| Public Storage | 34,338 | 6,911,209 |
| Rayonier, Inc. | 27,480 | 632,040 |
| Realogy Holdings Corp. * | 31,768 | 1,280,250 |
| Realty Income Corp. | 50,268 | 2,246,477 |
| Regency Centers Corp. | 20,152 | 1,195,215 |
| Senior Housing Properties Trust | 59,238 | 930,037 |
| Simon Property Group, Inc. | 70,719 | 12,681,331 |
| SL Green Realty Corp. | 22,859 | 2,366,135 |
| Taubman Centers, Inc. | 13,338 | 920,189 |
| The Macerich Co. | 31,273 | 2,382,377 |
| UDR, Inc. | 62,322 | 2,013,001 |
| Ventas, Inc. | 74,079 | 4,075,827 |
| VEREIT, Inc. | 202,520 | 1,648,513 |
| Vornado Realty Trust | 38,527 | 3,359,169 |
| Weingarten Realty Investors | 24,172 | 764,802 |
| Weyerhaeuser Co. | 117,923 | 3,294,769 |
| WP Carey, Inc. | 20,541 | 1,180,491 |
| 137,663,576 | ||
| Retailing 5.2% | ||
| Advance Auto Parts, Inc. | 16,505 | 2,892,501 |
| Amazon.com, Inc. * | 86,946 | 44,593,734 |
| AutoNation, Inc. * | 17,209 | 1,029,786 |
| AutoZone, Inc. * | 7,058 | 5,053,457 |
| Bed Bath & Beyond, Inc. * | 38,492 | 2,390,738 |
| Best Buy Co., Inc. | 66,797 | 2,454,122 |
| CarMax, Inc. * | 46,425 | 2,831,925 |
| Dick's Sporting Goods, Inc. | 22,269 | 1,116,345 |
| Dillard's, Inc., Class A | 6,376 | 589,844 |
| Dollar General Corp. | 68,295 | 5,087,294 |
| Dollar Tree, Inc. * | 52,872 | 4,032,019 |
| Expedia, Inc. | 23,350 | 2,685,016 |
| Foot Locker, Inc. | 31,802 | 2,251,264 |
| GameStop Corp., Class A (a) | 25,750 | 1,093,860 |
| Genuine Parts Co. | 33,454 | 2,793,074 |
| Groupon, Inc. * | 70,532 | 317,394 |
| Kohl's Corp. | 44,305 | 2,260,884 |
| L Brands, Inc. | 56,974 | 4,780,119 |
| Liberty Interactive Corp. QVC Group, Class A * | 99,045 | 2,678,177 |
| LKQ Corp. * | 66,406 | 1,991,516 |
| Lowe's Cos., Inc. | 210,989 | 14,594,109 |
| Macy's, Inc. | 77,203 | 4,524,868 |
| Netflix, Inc. * | 97,426 | 11,206,913 |
| Nordstrom, Inc. | 31,827 | 2,319,552 |
| O'Reilly Automotive, Inc. * | 22,750 | 5,461,592 |
| Ross Stores, Inc. | 97,016 | 4,716,918 |
| Sally Beauty Holdings, Inc. * | 26,498 | 692,658 |
| Signet Jewelers Ltd. | 18,353 | 2,532,714 |
| Staples, Inc. | 143,076 | 2,033,110 |
| Target Corp. | 146,119 | 11,354,907 |
| Security | Number of Shares | Value ($) |
| The Gap, Inc. | 60,831 | 1,995,865 |
| The Home Depot, Inc. | 296,191 | 34,494,404 |
| The Priceline Group, Inc. * | 11,894 | 14,851,324 |
| The TJX Cos., Inc. | 156,025 | 10,971,678 |
| Tiffany & Co. | 26,767 | 2,201,586 |
| Tractor Supply Co. | 31,309 | 2,670,971 |
| TripAdvisor, Inc. * | 27,323 | 1,909,878 |
| Ulta Salon, Cosmetics & Fragrance, Inc. * | 15,115 | 2,389,530 |
| Urban Outfitters, Inc. * | 23,903 | 737,647 |
| Williams-Sonoma, Inc. | 20,195 | 1,535,426 |
| 226,118,719 | ||
| Semiconductors & Semiconductor Equipment 2.2% | ||
| Altera Corp. | 69,695 | 3,383,692 |
| Analog Devices, Inc. | 71,601 | 3,999,632 |
| Applied Materials, Inc. | 275,485 | 4,431,176 |
| Avago Technologies Ltd. | 59,001 | 7,432,356 |
| Broadcom Corp., Class A | 122,814 | 6,345,799 |
| First Solar, Inc. * | 16,738 | 800,746 |
| Freescale Semiconductor Ltd. * | 26,582 | 949,775 |
| Intel Corp. | 1,083,070 | 30,910,818 |
| KLA-Tencor Corp. | 36,677 | 1,837,884 |
| Lam Research Corp. | 36,753 | 2,674,516 |
| Linear Technology Corp. | 54,029 | 2,176,288 |
| Marvell Technology Group Ltd. | 92,394 | 1,041,280 |
| Maxim Integrated Products, Inc. | 64,444 | 2,169,829 |
| Microchip Technology, Inc. | 44,260 | 1,881,050 |
| Micron Technology, Inc. * | 243,316 | 3,992,816 |
| NVIDIA Corp. | 117,361 | 2,638,275 |
| Skyworks Solutions, Inc. | 43,968 | 3,840,605 |
| Texas Instruments, Inc. | 236,884 | 11,332,531 |
| Xilinx, Inc. | 58,668 | 2,457,603 |
| 94,296,671 | ||
| Software & Services 11.1% | ||
| Accenture plc, Class A | 143,121 | 13,492,017 |
| Activision Blizzard, Inc. | 112,402 | 3,218,069 |
| Adobe Systems, Inc. * | 107,434 | 8,441,089 |
| Akamai Technologies, Inc. * | 41,672 | 2,971,630 |
| Alliance Data Systems Corp. * | 14,276 | 3,671,644 |
| Amdocs Ltd. | 35,176 | 2,012,419 |
| ANSYS, Inc. * | 20,162 | 1,786,353 |
| Autodesk, Inc. * | 51,809 | 2,422,071 |
| Automatic Data Processing, Inc. | 108,766 | 8,409,787 |
| Box, Inc., Class A *(a) | 9,735 | 131,228 |
| CA, Inc. | 72,127 | 1,968,346 |
| Cadence Design Systems, Inc. * | 62,309 | 1,247,426 |
| CDK Global, Inc. | 35,944 | 1,780,666 |
| Citrix Systems, Inc. * | 35,392 | 2,410,549 |
| Cognizant Technology Solutions Corp., Class A * | 138,392 | 8,710,392 |
| Computer Sciences Corp. | 31,808 | 1,971,778 |
| eBay, Inc. * | 250,326 | 6,786,338 |
| Electronic Arts, Inc. * | 71,915 | 4,757,177 |
| Facebook, Inc., Class A * | 479,366 | 42,869,701 |
| FactSet Research Systems, Inc. | 9,230 | 1,457,602 |
| Fidelity National Information Services, Inc. | 64,476 | 4,452,713 |
| FireEye, Inc. * | 6,267 | 236,767 |
See financial notes 25
Schwab U.S. Large-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Fiserv, Inc. * | 53,924 | 4,598,099 |
| FleetCor Technologies, Inc. * | 16,860 | 2,514,838 |
| Gartner, Inc. * | 20,290 | 1,734,998 |
| Global Payments, Inc. | 13,966 | 1,555,673 |
| Google, Inc., Class A * | 65,146 | 42,202,882 |
| Google, Inc., Class C * | 65,535 | 40,517,014 |
| IAC/InterActiveCorp | 16,989 | 1,185,832 |
| International Business Machines Corp. | 207,841 | 30,737,605 |
| Intuit, Inc. | 62,326 | 5,344,455 |
| Jack Henry & Associates, Inc. | 18,608 | 1,264,600 |
| LinkedIn Corp., Class A * | 24,639 | 4,449,803 |
| MasterCard, Inc., Class A | 219,964 | 20,318,075 |
| Microsoft Corp. | 1,840,558 | 80,101,084 |
| NetSuite, Inc. * | 7,489 | 665,398 |
| Nuance Communications, Inc. * | 56,866 | 936,583 |
| Oracle Corp. | 727,669 | 26,989,243 |
| Paychex, Inc. | 76,042 | 3,396,036 |
| PayPal Holdings, Inc. * | 250,326 | 8,761,410 |
| Rackspace Hosting, Inc. * | 24,619 | 748,664 |
| Red Hat, Inc. * | 42,178 | 3,045,673 |
| Sabre Corp. | 29,528 | 803,752 |
| salesforce.com, Inc. * | 138,461 | 9,603,655 |
| ServiceNow, Inc. * | 31,499 | 2,235,169 |
| Solera Holdings, Inc. | 14,703 | 708,244 |
| Symantec Corp. | 155,746 | 3,191,236 |
| Synopsys, Inc. * | 35,000 | 1,642,550 |
| Teradata Corp. * | 35,506 | 1,037,840 |
| The Western Union Co. | 123,122 | 2,270,370 |
| Total System Services, Inc. | 37,386 | 1,713,400 |
| Twitter, Inc. * | 123,149 | 3,422,311 |
| Vantiv, Inc., Class A * | 31,426 | 1,384,001 |
| VeriSign, Inc. *(a) | 23,112 | 1,593,341 |
| Visa, Inc., Class A | 440,252 | 31,389,968 |
| VMware, Inc., Class A * | 21,235 | 1,680,750 |
| Workday, Inc., Class A * | 23,660 | 1,662,352 |
| Xerox Corp. | 238,202 | 2,422,514 |
| Yahoo! Inc. * | 198,593 | 6,402,638 |
| 479,437,818 | ||
| Technology Hardware & Equipment 6.1% | ||
| 3D Systems Corp. *(a) | 15,112 | 207,488 |
| Amphenol Corp., Class A | 69,756 | 3,652,424 |
| Apple, Inc. | 1,313,390 | 148,097,856 |
| Arrow Electronics, Inc. * | 22,090 | 1,235,273 |
| Avnet, Inc. | 31,144 | 1,320,506 |
| Cisco Systems, Inc. | 1,160,016 | 30,021,214 |
| Corning, Inc. | 283,188 | 4,873,665 |
| EMC Corp. | 440,013 | 10,943,123 |
| F5 Networks, Inc. * | 16,730 | 2,031,189 |
| FLIR Systems, Inc. | 31,831 | 911,322 |
| Harris Corp. | 28,018 | 2,152,343 |
| Hewlett-Packard Co. | 411,680 | 11,551,741 |
| Jabil Circuit, Inc. | 42,136 | 815,332 |
| Juniper Networks, Inc. | 80,159 | 2,060,888 |
| Keysight Technologies, Inc. * | 37,880 | 1,213,675 |
| Motorola Solutions, Inc. | 42,251 | 2,738,710 |
| National Instruments Corp. | 20,491 | 598,542 |
| NCR Corp. * | 44,472 | 1,115,802 |
| NetApp, Inc. | 69,989 | 2,236,848 |
| QUALCOMM, Inc. | 369,507 | 20,906,706 |
| Security | Number of Shares | Value ($) |
| SanDisk Corp. | 48,829 | 2,664,110 |
| Seagate Technology plc | 74,112 | 3,809,357 |
| TE Connectivity Ltd. | 92,488 | 5,483,614 |
| Trimble Navigation Ltd. * | 64,916 | 1,226,912 |
| Western Digital Corp. | 51,711 | 4,238,234 |
| 266,106,874 | ||
| Telecommunication Services 2.4% | ||
| AT&T, Inc. | 1,401,563 | 46,531,892 |
| CenturyLink, Inc. | 126,949 | 3,432,701 |
| Frontier Communications Corp. | 285,473 | 1,447,348 |
| Level 3 Communications, Inc. * | 69,732 | 3,119,112 |
| SBA Communications Corp., Class A * | 29,665 | 3,506,403 |
| Sprint Corp. * | 185,248 | 937,355 |
| T-Mobile US, Inc. * | 63,399 | 2,511,234 |
| Verizon Communications, Inc. | 928,545 | 42,722,356 |
| Windstream Holdings, Inc. (a) | 40,308 | 289,815 |
| Zayo Group Holdings, Inc. * | 14,487 | 405,201 |
| 104,903,417 | ||
| Transportation 2.1% | ||
| American Airlines Group, Inc. | 160,559 | 6,258,590 |
| Avis Budget Group, Inc. * | 22,884 | 1,009,871 |
| C.H. Robinson Worldwide, Inc. | 33,730 | 2,274,414 |
| CSX Corp. | 224,141 | 6,136,981 |
| Delta Air Lines, Inc. | 186,222 | 8,152,799 |
| Expeditors International of Washington, Inc. | 46,196 | 2,262,218 |
| FedEx Corp. | 59,197 | 8,915,660 |
| Genesee & Wyoming, Inc., Class A * | 11,182 | 764,625 |
| Hertz Global Holdings, Inc. * | 112,750 | 2,077,982 |
| J.B. Hunt Transport Services, Inc. | 20,277 | 1,475,760 |
| Kansas City Southern | 23,977 | 2,223,627 |
| Kirby Corp. * | 12,951 | 913,434 |
| Norfolk Southern Corp. | 70,206 | 5,469,749 |
| Southwest Airlines Co. | 151,011 | 5,542,104 |
| Union Pacific Corp. | 198,144 | 16,988,867 |
| United Continental Holdings, Inc. * | 89,163 | 5,079,616 |
| United Parcel Service, Inc., Class B | 158,138 | 15,442,176 |
| 90,988,473 | ||
| Utilities 3.0% | ||
| AES Corp. | 162,964 | 1,955,568 |
| AGL Resources, Inc. | 26,181 | 1,596,779 |
| Alliant Energy Corp. | 27,573 | 1,562,562 |
| Ameren Corp. | 55,225 | 2,225,015 |
| American Electric Power Co., Inc. | 111,033 | 6,027,982 |
| American Water Works Co., Inc. | 38,985 | 2,024,881 |
| Aqua America, Inc. | 38,700 | 981,432 |
| Calpine Corp. * | 80,710 | 1,286,517 |
| CenterPoint Energy, Inc. | 97,304 | 1,811,800 |
| CMS Energy Corp. | 60,556 | 1,985,026 |
| Consolidated Edison, Inc. | 67,707 | 4,259,447 |
| Dominion Resources, Inc. | 137,158 | 9,566,770 |
| DTE Energy Co. | 42,816 | 3,342,217 |
| Duke Energy Corp. | 159,600 | 11,317,236 |
| Edison International | 73,502 | 4,298,397 |
| Entergy Corp. | 40,861 | 2,669,449 |
| Eversource Energy | 69,692 | 3,292,250 |
26 See financial notes
Schwab U.S. Large-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Exelon Corp. | 197,431 | 6,072,978 |
| FirstEnergy Corp. | 98,225 | 3,139,271 |
| ITC Holdings Corp. | 34,996 | 1,144,369 |
| MDU Resources Group, Inc. | 53,388 | 956,179 |
| National Fuel Gas Co. | 18,362 | 990,814 |
| NextEra Energy, Inc. | 100,931 | 9,932,620 |
| NiSource, Inc. | 70,340 | 1,181,009 |
| NRG Energy, Inc. | 73,311 | 1,460,355 |
| OGE Energy Corp. | 43,992 | 1,233,536 |
| Pepco Holdings, Inc. | 63,443 | 1,457,920 |
| PG&E Corp. | 111,213 | 5,513,941 |
| Pinnacle West Capital Corp. | 24,026 | 1,430,268 |
| PPL Corp. | 149,313 | 4,627,210 |
| Public Service Enterprise Group, Inc. | 112,008 | 4,508,322 |
| SCANA Corp. | 31,671 | 1,675,079 |
| Sempra Energy | 52,155 | 4,946,902 |
| TECO Energy, Inc. | 52,487 | 1,105,901 |
| The Southern Co. | 208,517 | 9,051,723 |
| UGI Corp. | 41,565 | 1,416,535 |
| WEC Energy Group, Inc. | 70,182 | 3,344,172 |
| Westar Energy, Inc. | 31,203 | 1,140,470 |
| Xcel Energy, Inc. | 121,443 | 4,096,272 |
| 130,629,174 | ||
| Total Common Stock | ||
| (Cost $3,843,160,621) | 4,313,972,672 | |
| Other Investment Companies 0.3% of net assets | ||
| Money Market Fund 0.1% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c) | 2,966,213 | 2,966,213 |
| Securities Lending Collateral 0.2% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c) | 9,948,209 | 9,948,209 |
| Total Other Investment Companies | ||
| (Cost $12,914,422) | 12,914,422 | |
End of Investments.
At 08/31/15, the tax basis cost of the fund's investments was $3,855,885,866 and the unrealized appreciation and depreciation were $622,683,517 and ($151,682,289), respectively, with a net unrealized appreciation of $471,001,228.
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $10,546,024. Non-cash collateral pledged to the fund for securities on loan amounted to $705,622. |
| (b) | Issuer is affiliated with the fund's adviser. |
| (c) | The rate shown is the 7-day yield. |
| REIT — | Real Estate Investment Trust |
In addition to the above, the fund held the following at 08/31/15:
| Number of Contracts | Contract Value ($) | Unrealized Depreciation ($) | ||||
| Futures Contracts | ||||||
| S&P 500 Index, e-mini, Long, expires 09/18/15 | 85 | 8,369,100 | (165,126) | |||
See financial notes 27
Schwab U.S. Large-Cap Growth ETF
Portfolio Holdings as of August 31, 2015
This section shows all the securities in the fund's portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be viewed and copied at the SEC's Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund's website at www.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.7% | Common Stock | 1,921,151,032 | 2,238,699,341 |
| 0.4% | Other Investment Companies | 8,760,129 | 8,719,193 |
| 100.1% | Total Investments | 1,929,911,161 | 2,247,418,534 |
| (0.1%) | Other Assets and Liabilities, Net | (1,317,446) | |
| 100.0% | Net Assets | 2,246,101,088 | |
| Security | Number of Shares | Value ($) |
| Common Stock 99.7% of net assets | ||
| Automobiles & Components 0.5% | ||
| BorgWarner, Inc. | 52,472 | 2,289,878 |
| Lear Corp. | 18,273 | 1,878,282 |
| Tesla Motors, Inc. * | 22,952 | 5,716,425 |
| The Goodyear Tire & Rubber Co. | 63,426 | 1,888,192 |
| 11,772,777 | ||
| Banks 0.1% | ||
| CIT Group, Inc. | 40,011 | 1,738,078 |
| Zions Bancorp | 53,469 | 1,550,601 |
| 3,288,679 | ||
| Capital Goods 6.6% | ||
| 3M Co. | 150,046 | 21,327,538 |
| AMETEK, Inc. | 56,404 | 3,035,663 |
| B/E Aerospace, Inc. | 25,124 | 1,224,795 |
| Carlisle Cos., Inc. | 14,754 | 1,485,728 |
| Caterpillar, Inc. | 142,345 | 10,880,852 |
| Chicago Bridge & Iron Co. N.V. (a) | 22,010 | 974,603 |
| Colfax Corp. * | 23,016 | 892,791 |
| Cummins, Inc. | 39,239 | 4,777,348 |
| Danaher Corp. | 144,575 | 12,580,917 |
| Deere & Co. | 79,703 | 6,518,111 |
| Donaldson Co., Inc. | 28,872 | 903,982 |
| Dover Corp. | 38,342 | 2,375,287 |
| Fastenal Co. | 62,760 | 2,418,770 |
| Flowserve Corp. | 31,444 | 1,419,068 |
| Fluor Corp. | 34,008 | 1,551,445 |
| Fortune Brands Home & Security, Inc. | 41,377 | 1,979,889 |
| IDEX Corp. | 18,402 | 1,321,816 |
| Illinois Tool Works, Inc. | 81,789 | 6,913,624 |
| Jacobs Engineering Group, Inc. * | 29,521 | 1,192,944 |
| Security | Number of Shares | Value ($) |
| KLX, Inc. * | 12,470 | 487,577 |
| Lincoln Electric Holdings, Inc. | 18,250 | 1,070,363 |
| MSC Industrial Direct Co., Inc., Class A | 11,619 | 786,490 |
| Nordson Corp. | 14,114 | 938,863 |
| PACCAR, Inc. | 83,924 | 4,948,998 |
| Pentair plc | 44,308 | 2,449,789 |
| Precision Castparts Corp. | 33,031 | 7,605,388 |
| Quanta Services, Inc. * | 53,738 | 1,302,609 |
| Roper Technologies, Inc. | 23,733 | 3,846,882 |
| Sensata Technologies Holding N.V. * | 42,992 | 2,037,821 |
| Snap-on, Inc. | 14,651 | 2,340,790 |
| SolarCity Corp. *(a) | 11,306 | 545,854 |
| SPX Corp. | 9,067 | 532,505 |
| Stanley Black & Decker, Inc. | 36,335 | 3,688,729 |
| The Boeing Co. | 151,566 | 19,806,645 |
| TransDigm Group, Inc. * | 11,472 | 2,636,610 |
| United Rentals, Inc. * | 23,157 | 1,605,475 |
| W.W. Grainger, Inc. | 13,937 | 3,114,083 |
| WABCO Holdings, Inc. * | 12,622 | 1,455,569 |
| Wabtec Corp. | 22,669 | 2,170,783 |
| 147,146,994 | ||
| Commercial & Professional Services 1.0% | ||
| Copart, Inc. * | 27,201 | 952,579 |
| Equifax, Inc. | 29,034 | 2,842,429 |
| IHS, Inc., Class A * | 15,873 | 1,841,586 |
| ManpowerGroup, Inc. | 18,302 | 1,590,444 |
| Nielsen Holdings plc | 87,401 | 3,953,147 |
| Robert Half International, Inc. | 31,378 | 1,601,219 |
| Rollins, Inc. | 23,446 | 654,612 |
| Stericycle, Inc. * | 20,121 | 2,839,878 |
| The Dun & Bradstreet Corp. | 8,157 | 864,397 |
| Towers Watson & Co., Class A | 15,771 | 1,872,491 |
| Verisk Analytics, Inc. * | 37,701 | 2,755,189 |
| Waste Connections, Inc. | 29,948 | 1,424,327 |
| 23,192,298 | ||
| Consumer Durables & Apparel 2.5% | ||
| Carter's, Inc. | 12,599 | 1,238,608 |
| D.R. Horton, Inc. | 79,290 | 2,408,037 |
| Fossil Group, Inc. * | 10,086 | 621,096 |
| Hanesbrands, Inc. | 95,276 | 2,868,760 |
| Harman International Industries, Inc. | 16,316 | 1,594,726 |
| Jarden Corp. * | 45,290 | 2,325,189 |
| Lennar Corp., Class A | 45,129 | 2,297,066 |
| lululemon athletica, Inc. * | 24,604 | 1,574,902 |
| Michael Kors Holdings Ltd. * | 47,209 | 2,051,703 |
| Mohawk Industries, Inc. * | 14,796 | 2,914,368 |
| NIKE, Inc., Class B | 164,147 | 18,343,427 |
| NVR, Inc. * | 877 | 1,332,996 |
| Polaris Industries, Inc. | 15,700 | 2,038,959 |
| PVH Corp. | 19,312 | 2,297,742 |
| Ralph Lauren Corp. | 14,217 | 1,580,788 |
| Toll Brothers, Inc. * | 38,330 | 1,417,060 |
| Under Armour, Inc., Class A * | 39,138 | 3,738,853 |
| VF Corp. | 81,839 | 5,927,599 |
| 56,571,879 | ||
28 See financial notes
Schwab U.S. Large-Cap Growth ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Consumer Services 2.5% | ||
| Chipotle Mexican Grill, Inc. * | 7,221 | 5,126,982 |
| Dunkin' Brands Group, Inc. | 23,445 | 1,176,001 |
| Extended Stay America, Inc. | 13,247 | 248,646 |
| Hilton Worldwide Holdings, Inc. | 123,124 | 3,057,169 |
| Hyatt Hotels Corp., Class A * | 13,567 | 695,037 |
| Las Vegas Sands Corp. | 85,271 | 3,942,078 |
| Marriott International, Inc., Class A | 48,816 | 3,449,339 |
| Norwegian Cruise Line Holdings Ltd. * | 35,508 | 2,045,261 |
| Royal Caribbean Cruises Ltd. | 41,207 | 3,632,809 |
| Starbucks Corp. | 354,553 | 19,397,595 |
| Starwood Hotels & Resorts Worldwide, Inc. | 41,635 | 2,975,654 |
| Wynn Resorts Ltd. | 19,708 | 1,479,085 |
| Yum! Brands, Inc. | 101,331 | 8,083,174 |
| 55,308,830 | ||
| Diversified Financials 6.6% | ||
| Affiliated Managers Group, Inc. * | 12,618 | 2,352,500 |
| Ally Financial, Inc. * | 107,538 | 2,350,781 |
| American Express Co. | 208,700 | 16,011,464 |
| Ameriprise Financial, Inc. | 42,836 | 4,826,332 |
| Berkshire Hathaway, Inc., Class B * | 432,260 | 57,940,130 |
| BlackRock, Inc. | 30,290 | 9,161,816 |
| Franklin Resources, Inc. | 90,893 | 3,688,438 |
| Intercontinental Exchange, Inc. | 27,169 | 6,205,671 |
| Lazard Ltd., Class A | 31,841 | 1,583,453 |
| LendingClub Corp. * | 20,553 | 257,940 |
| Leucadia National Corp. | 72,341 | 1,552,438 |
| LPL Financial Holdings, Inc. (a) | 17,403 | 699,949 |
| McGraw Hill Financial, Inc. | 65,989 | 6,400,273 |
| Moody's Corp. | 42,735 | 4,372,218 |
| Morgan Stanley | 359,153 | 12,372,821 |
| MSCI, Inc. | 25,588 | 1,548,586 |
| Raymond James Financial, Inc. | 30,916 | 1,638,239 |
| SEI Investments Co. | 29,978 | 1,516,287 |
| T. Rowe Price Group, Inc. | 60,672 | 4,361,103 |
| TD Ameritrade Holding Corp. | 62,950 | 2,106,307 |
| The Charles Schwab Corp. (b) | 273,886 | 8,320,657 |
| 149,267,403 | ||
| Energy 5.0% | ||
| Anadarko Petroleum Corp. | 118,526 | 8,484,091 |
| Antero Resources Corp. *(a) | 12,508 | 323,207 |
| Baker Hughes, Inc. | 100,376 | 5,621,056 |
| Cabot Oil & Gas Corp. | 96,197 | 2,276,983 |
| Cameron International Corp. * | 46,775 | 3,122,699 |
| Cheniere Energy, Inc. * | 51,076 | 3,174,373 |
| Cimarex Energy Co. | 23,470 | 2,593,670 |
| Concho Resources, Inc. * | 29,501 | 3,190,828 |
| Continental Resources, Inc. * | 20,352 | 653,299 |
| Core Laboratories N.V. (a) | 11,934 | 1,380,525 |
| Denbury Resources, Inc. | 88,030 | 382,050 |
| Devon Energy Corp. | 90,178 | 3,846,994 |
| EOG Resources, Inc. | 129,601 | 10,149,054 |
| EQT Corp. | 36,860 | 2,868,445 |
| FMC Technologies, Inc. * | 54,028 | 1,879,094 |
| Halliburton Co. | 201,734 | 7,938,233 |
| Hess Corp. | 56,739 | 3,373,134 |
| Security | Number of Shares | Value ($) |
| HollyFrontier Corp. | 46,878 | 2,196,703 |
| Nabors Industries Ltd. | 69,788 | 805,354 |
| National Oilwell Varco, Inc. | 91,805 | 3,886,106 |
| Noble Energy, Inc. | 100,812 | 3,368,129 |
| Oasis Petroleum, Inc. *(a) | 36,221 | 404,226 |
| Oceaneering International, Inc. | 24,812 | 1,087,262 |
| ONEOK, Inc. | 47,817 | 1,721,890 |
| Pioneer Natural Resources Co. | 34,917 | 4,296,886 |
| Range Resources Corp. | 38,602 | 1,490,809 |
| Schlumberger Ltd. | 300,691 | 23,264,463 |
| SM Energy Co. | 14,342 | 526,351 |
| Southwestern Energy Co. * | 95,387 | 1,549,085 |
| Superior Energy Services, Inc. | 35,631 | 566,889 |
| Tesoro Corp. | 29,522 | 2,716,319 |
| Weatherford International plc * | 178,323 | 1,809,979 |
| Whiting Petroleum Corp. * | 26,482 | 511,897 |
| 111,460,083 | ||
| Food & Staples Retailing 2.8% | ||
| Costco Wholesale Corp. | 103,361 | 14,475,708 |
| CVS Health Corp. | 266,648 | 27,304,755 |
| Walgreens Boots Alliance, Inc. | 206,821 | 17,900,357 |
| Whole Foods Market, Inc. | 89,856 | 2,943,683 |
| 62,624,503 | ||
| Food, Beverage & Tobacco 2.4% | ||
| Brown-Forman Corp., Class B | 36,433 | 3,574,077 |
| Constellation Brands, Inc., Class A | 39,049 | 4,998,272 |
| Keurig Green Mountain, Inc. | 20,000 | 1,132,000 |
| Mead Johnson Nutrition Co. | 48,039 | 3,763,375 |
| Monster Beverage Corp. * | 34,866 | 4,827,547 |
| PepsiCo, Inc. | 351,703 | 32,683,760 |
| The Hershey Co. | 34,250 | 3,066,060 |
| 54,045,091 | ||
| Health Care Equipment & Services 7.3% | ||
| Aetna, Inc. | 81,642 | 9,349,642 |
| AmerisourceBergen Corp. | 49,136 | 4,915,565 |
| Becton Dickinson & Co. | 48,752 | 6,875,007 |
| C.R. Bard, Inc. | 17,652 | 3,420,781 |
| Cerner Corp. * | 71,148 | 4,394,101 |
| Cigna Corp. | 60,820 | 8,562,848 |
| Community Health Systems, Inc. * | 31,523 | 1,692,785 |
| DaVita HealthCare Partners, Inc. * | 40,905 | 3,094,054 |
| DENTSPLY International, Inc. | 33,086 | 1,734,037 |
| Edwards Lifesciences Corp. * | 25,186 | 3,548,204 |
| Envision Healthcare Holdings, Inc. * | 42,033 | 1,722,092 |
| Express Scripts Holding Co. * | 160,508 | 13,418,469 |
| HCA Holdings, Inc. * | 69,413 | 6,012,554 |
| Henry Schein, Inc. * | 19,376 | 2,650,831 |
| Hologic, Inc. * | 55,626 | 2,158,845 |
| IDEXX Laboratories, Inc. * | 22,730 | 1,624,513 |
| Intuitive Surgical, Inc. * | 8,511 | 4,348,695 |
| Laboratory Corp. of America Holdings * | 24,785 | 2,919,921 |
| McKesson Corp. | 54,497 | 10,767,517 |
| MEDNAX, Inc. * | 22,835 | 1,839,359 |
| Medtronic plc | 336,806 | 24,347,706 |
| Premier, Inc., Class A * | 6,945 | 247,589 |
| ResMed, Inc. | 32,476 | 1,686,803 |
See financial notes 29
Schwab U.S. Large-Cap Growth ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Sirona Dental Systems, Inc. * | 13,071 | 1,246,712 |
| Stryker Corp. | 70,470 | 6,951,866 |
| Tenet Healthcare Corp. * | 22,512 | 1,108,266 |
| The Cooper Cos., Inc. | 11,536 | 1,873,677 |
| UnitedHealth Group, Inc. | 226,742 | 26,234,049 |
| Universal Health Services, Inc., Class B | 21,720 | 2,978,681 |
| Varian Medical Systems, Inc. * | 23,671 | 1,923,269 |
| 163,648,438 | ||
| Household & Personal Products 1.0% | ||
| Church & Dwight Co., Inc. | 30,610 | 2,641,031 |
| Colgate-Palmolive Co. | 203,548 | 12,784,850 |
| Edgewell Personal Care Co. | 14,732 | 1,297,300 |
| Energizer Holdings, Inc. | 14,732 | 615,208 |
| Herbalife Ltd. *(a) | 17,066 | 982,490 |
| The Estee Lauder Cos., Inc., Class A | 51,622 | 4,117,887 |
| 22,438,766 | ||
| Insurance 0.6% | ||
| Alleghany Corp. * | 3,770 | 1,771,108 |
| Arch Capital Group Ltd. * | 30,323 | 2,070,454 |
| Erie Indemnity Co., Class A | 5,729 | 469,606 |
| Everest Re Group Ltd. | 10,406 | 1,829,479 |
| Markel Corp. * | 3,144 | 2,589,870 |
| PartnerRe Ltd. | 11,266 | 1,559,327 |
| RenaissanceRe Holdings Ltd. | 11,830 | 1,206,069 |
| W.R. Berkley Corp. | 23,384 | 1,269,284 |
| 12,765,197 | ||
| Materials 3.0% | ||
| Airgas, Inc. | 15,815 | 1,526,464 |
| Axalta Coating Systems Ltd. * | 33,173 | 968,320 |
| Ball Corp. | 31,699 | 2,089,281 |
| CF Industries Holdings, Inc. | 56,910 | 3,265,496 |
| Crown Holdings, Inc. * | 37,206 | 1,844,301 |
| Ecolab, Inc. | 62,921 | 6,867,198 |
| FMC Corp. | 30,380 | 1,285,378 |
| LyondellBasell Industries N.V., Class A | 93,057 | 7,945,207 |
| Martin Marietta Materials, Inc. | 14,110 | 2,367,658 |
| Monsanto Co. | 112,724 | 11,007,498 |
| Packaging Corp. of America | 22,970 | 1,541,517 |
| PPG Industries, Inc. | 64,318 | 6,128,862 |
| Praxair, Inc. | 67,173 | 7,103,545 |
| Royal Gold, Inc. | 15,755 | 758,130 |
| Sigma-Aldrich Corp. | 29,200 | 4,070,772 |
| The Sherwin-Williams Co. | 18,652 | 4,771,368 |
| The Valspar Corp. | 17,463 | 1,280,038 |
| W.R. Grace & Co. * | 16,821 | 1,664,270 |
| 66,485,303 | ||
| Media 5.1% | ||
| AMC Networks, Inc., Class A * | 14,109 | 1,021,210 |
| Charter Communications, Inc., Class A *(a) | 19,102 | 3,469,114 |
| Comcast Corp., Class A | 593,879 | 33,453,204 |
| Discovery Communications, Inc., Class A *(a) | 33,988 | 904,081 |
| Security | Number of Shares | Value ($) |
| Discovery Communications, Inc., Class C * | 62,834 | 1,593,470 |
| DISH Network Corp., Class A * | 52,418 | 3,106,815 |
| Liberty Global plc LiLAC, Class A * | 2,966 | 101,941 |
| Liberty Global plc LiLAC, Class C * | 6,969 | 231,719 |
| Liberty Global plc, Class A * | 59,822 | 2,878,635 |
| Liberty Global plc, Series C * | 139,448 | 6,257,032 |
| Liberty Media Corp., Class A * | 27,408 | 1,020,948 |
| Liberty Media Corp., Class C * | 45,909 | 1,662,824 |
| Scripps Networks Interactive, Inc., Class A | 22,042 | 1,170,210 |
| Sirius XM Holdings, Inc. * | 614,556 | 2,344,531 |
| The Madison Square Garden Co., Class A * | 14,380 | 1,012,927 |
| The Walt Disney Co. | 369,780 | 37,673,186 |
| Time Warner Cable, Inc. | 66,674 | 12,402,698 |
| Tribune Media Co., Class A | 22,762 | 909,114 |
| Viacom, Inc., Class B | 85,879 | 3,501,287 |
| 114,714,946 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 9.6% | ||
| Agilent Technologies, Inc. | 80,159 | 2,910,573 |
| Alexion Pharmaceuticals, Inc. * | 52,412 | 9,024,822 |
| Allergan plc * | 92,840 | 28,199,222 |
| Amgen, Inc. | 179,931 | 27,309,927 |
| Biogen, Inc. * | 55,684 | 16,554,853 |
| BioMarin Pharmaceutical, Inc. * | 38,705 | 5,002,234 |
| Celgene Corp. * | 187,797 | 22,175,070 |
| Endo International plc * | 48,797 | 3,757,369 |
| Gilead Sciences, Inc. | 347,827 | 36,546,183 |
| Illumina, Inc. * | 35,059 | 6,928,009 |
| Incyte Corp. * | 39,018 | 4,533,501 |
| Jazz Pharmaceuticals plc * | 14,592 | 2,463,421 |
| Mallinckrodt plc * | 27,142 | 2,340,726 |
| Medivation, Inc. * | 18,388 | 1,619,247 |
| Mettler-Toledo International, Inc. * | 6,427 | 1,905,927 |
| Perrigo Co., plc | 34,033 | 6,227,018 |
| Puma Biotechnology, Inc. * | 4,742 | 435,885 |
| Regeneron Pharmaceuticals, Inc. * | 17,866 | 9,174,191 |
| Seattle Genetics, Inc. * | 22,907 | 922,465 |
| Thermo Fisher Scientific, Inc. | 94,696 | 11,872,038 |
| Vertex Pharmaceuticals, Inc. * | 58,741 | 7,490,652 |
| Waters Corp. * | 19,036 | 2,310,590 |
| Zoetis, Inc. | 117,970 | 5,293,314 |
| 214,997,237 | ||
| Real Estate 3.5% | ||
| American Campus Communities, Inc. | 25,235 | 864,299 |
| American Tower Corp. | 99,320 | 9,156,311 |
| AvalonBay Communities, Inc. | 30,573 | 5,046,379 |
| Boston Properties, Inc. | 36,123 | 4,095,626 |
| Care Capital Properties, Inc. * | 20,020 | 636,436 |
| CBRE Group, Inc., Class A * | 65,505 | 2,097,470 |
| Crown Castle International Corp. | 82,635 | 6,890,933 |
| Digital Realty Trust, Inc. | 30,617 | 1,938,668 |
| Equinix, Inc. | 14,154 | 3,818,325 |
| Essex Property Trust, Inc. | 15,203 | 3,262,868 |
| Extra Space Storage, Inc. | 28,141 | 2,067,801 |
| Federal Realty Investment Trust | 16,093 | 2,077,284 |
| Host Hotels & Resorts, Inc. | 180,357 | 3,197,730 |
30 See financial notes
Schwab U.S. Large-Cap Growth ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Jones Lang LaSalle, Inc. | 10,602 | 1,578,320 |
| Public Storage | 34,398 | 6,923,285 |
| Realogy Holdings Corp. * | 33,290 | 1,341,587 |
| Simon Property Group, Inc. | 73,064 | 13,101,836 |
| SL Green Realty Corp. | 23,750 | 2,458,362 |
| Taubman Centers, Inc. | 14,059 | 969,930 |
| Ventas, Inc. | 80,080 | 4,406,002 |
| Vornado Realty Trust | 43,468 | 3,789,975 |
| 79,719,427 | ||
| Retailing 9.0% | ||
| Advance Auto Parts, Inc. | 18,110 | 3,173,777 |
| Amazon.com, Inc. * | 90,362 | 46,345,766 |
| AutoNation, Inc. * | 17,799 | 1,065,092 |
| AutoZone, Inc. * | 7,385 | 5,287,586 |
| Bed Bath & Beyond, Inc. * | 43,057 | 2,674,270 |
| CarMax, Inc. * | 50,485 | 3,079,585 |
| Dick's Sporting Goods, Inc. | 22,242 | 1,114,991 |
| Dollar General Corp. | 71,919 | 5,357,246 |
| Dollar Tree, Inc. * | 52,903 | 4,034,383 |
| Expedia, Inc. | 23,829 | 2,740,097 |
| Groupon, Inc. * | 85,284 | 383,778 |
| L Brands, Inc. | 56,784 | 4,764,178 |
| Liberty Interactive Corp. QVC Group, Class A * | 105,184 | 2,844,175 |
| LKQ Corp. * | 78,737 | 2,361,323 |
| Lowe's Cos., Inc. | 220,206 | 15,231,649 |
| Netflix, Inc. * | 99,893 | 11,490,692 |
| Nordstrom, Inc. | 32,584 | 2,374,722 |
| O'Reilly Automotive, Inc. * | 23,752 | 5,702,143 |
| Ross Stores, Inc. | 99,168 | 4,821,548 |
| Sally Beauty Holdings, Inc. * | 28,881 | 754,949 |
| Signet Jewelers Ltd. | 20,356 | 2,809,128 |
| The Home Depot, Inc. | 307,004 | 35,753,686 |
| The Priceline Group, Inc. * | 12,215 | 15,252,138 |
| The TJX Cos., Inc. | 159,587 | 11,222,158 |
| Tiffany & Co. | 25,637 | 2,108,643 |
| Tractor Supply Co. | 31,287 | 2,669,094 |
| TripAdvisor, Inc. * | 26,872 | 1,878,353 |
| Ulta Salon, Cosmetics & Fragrance, Inc. * | 15,073 | 2,382,890 |
| Urban Outfitters, Inc. * | 24,573 | 758,323 |
| Williams-Sonoma, Inc. | 20,126 | 1,530,180 |
| 201,966,543 | ||
| Semiconductors & Semiconductor Equipment 1.6% | ||
| Altera Corp. | 71,149 | 3,454,284 |
| Avago Technologies Ltd. | 61,167 | 7,705,207 |
| Broadcom Corp., Class A | 128,583 | 6,643,884 |
| First Solar, Inc. * | 17,340 | 829,546 |
| Freescale Semiconductor Ltd. * | 29,324 | 1,047,746 |
| Lam Research Corp. | 37,366 | 2,719,124 |
| Micron Technology, Inc. * | 255,043 | 4,185,256 |
| NVIDIA Corp. | 118,688 | 2,668,106 |
| Skyworks Solutions, Inc. | 44,856 | 3,918,171 |
| Xilinx, Inc. | 61,462 | 2,574,643 |
| 35,745,967 | ||
| Security | Number of Shares | Value ($) |
| Software & Services 15.8% | ||
| Accenture plc, Class A | 147,203 | 13,876,827 |
| Activision Blizzard, Inc. | 119,544 | 3,422,545 |
| Adobe Systems, Inc. * | 111,667 | 8,773,676 |
| Akamai Technologies, Inc. * | 44,134 | 3,147,195 |
| Alliance Data Systems Corp. * | 14,821 | 3,811,813 |
| ANSYS, Inc. * | 21,742 | 1,926,341 |
| Autodesk, Inc. * | 55,740 | 2,605,845 |
| Automatic Data Processing, Inc. | 111,102 | 8,590,407 |
| Box, Inc., Class A *(a) | 3,141 | 42,341 |
| CDK Global, Inc. | 41,411 | 2,051,501 |
| Citrix Systems, Inc. * | 37,728 | 2,569,654 |
| Cognizant Technology Solutions Corp., Class A * | 145,973 | 9,187,541 |
| eBay, Inc. * | 260,138 | 7,052,341 |
| Electronic Arts, Inc. * | 71,972 | 4,760,948 |
| Facebook, Inc., Class A * | 498,427 | 44,574,327 |
| FactSet Research Systems, Inc. | 9,109 | 1,438,493 |
| Fidelity National Information Services, Inc. | 67,989 | 4,695,320 |
| FireEye, Inc. * | 7,379 | 278,779 |
| Fiserv, Inc. * | 55,741 | 4,753,035 |
| FleetCor Technologies, Inc. * | 18,183 | 2,712,176 |
| Gartner, Inc. * | 20,173 | 1,724,993 |
| Global Payments, Inc. | 15,283 | 1,702,373 |
| Google, Inc., Class A * | 67,845 | 43,951,348 |
| Google, Inc., Class C * | 67,789 | 41,910,549 |
| IAC/InterActiveCorp | 18,577 | 1,296,675 |
| Intuit, Inc. | 65,178 | 5,589,013 |
| Jack Henry & Associates, Inc. | 19,297 | 1,311,424 |
| LinkedIn Corp., Class A * | 25,380 | 4,583,628 |
| MasterCard, Inc., Class A | 228,640 | 21,119,477 |
| NetSuite, Inc. * | 10,489 | 931,948 |
| Nuance Communications, Inc. * | 61,223 | 1,008,343 |
| Oracle Corp. | 753,899 | 27,962,114 |
| PayPal Holdings, Inc. * | 260,138 | 9,104,830 |
| Rackspace Hosting, Inc. * | 27,714 | 842,783 |
| Red Hat, Inc. * | 43,334 | 3,129,148 |
| Sabre Corp. | 29,800 | 811,156 |
| salesforce.com, Inc. * | 144,312 | 10,009,480 |
| ServiceNow, Inc. * | 31,446 | 2,231,408 |
| Synopsys, Inc. * | 35,174 | 1,650,716 |
| Teradata Corp. * | 35,672 | 1,042,693 |
| Twitter, Inc. * | 126,147 | 3,505,625 |
| Vantiv, Inc., Class A * | 34,725 | 1,529,289 |
| VeriSign, Inc. * | 25,960 | 1,789,682 |
| Visa, Inc., Class A | 456,870 | 32,574,831 |
| VMware, Inc., Class A * | 20,331 | 1,609,199 |
| Workday, Inc., Class A * | 22,954 | 1,612,748 |
| 354,806,578 | ||
| Technology Hardware & Equipment 9.1% | ||
| 3D Systems Corp. *(a) | 21,450 | 294,509 |
| Amphenol Corp., Class A | 72,173 | 3,778,978 |
| Apple, Inc. | 1,364,785 | 153,893,157 |
| EMC Corp. | 458,598 | 11,405,332 |
| F5 Networks, Inc. * | 16,904 | 2,052,315 |
| FLIR Systems, Inc. | 34,073 | 975,510 |
| Juniper Networks, Inc. | 87,419 | 2,247,542 |
| Keysight Technologies, Inc. * | 38,357 | 1,228,958 |
See financial notes 31
Schwab U.S. Large-Cap Growth ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| National Instruments Corp. | 23,628 | 690,174 |
| NetApp, Inc. | 73,617 | 2,352,799 |
| QUALCOMM, Inc. | 385,071 | 21,787,317 |
| SanDisk Corp. | 50,199 | 2,738,857 |
| Trimble Navigation Ltd. * | 67,884 | 1,283,008 |
| 204,728,456 | ||
| Telecommunication Services 0.4% | ||
| Level 3 Communications, Inc. * | 70,995 | 3,175,606 |
| SBA Communications Corp., Class A * | 31,044 | 3,669,401 |
| T-Mobile US, Inc. * | 61,647 | 2,441,838 |
| 9,286,845 | ||
| Transportation 3.6% | ||
| American Airlines Group, Inc. | 162,235 | 6,323,920 |
| Avis Budget Group, Inc. * | 25,592 | 1,129,375 |
| C.H. Robinson Worldwide, Inc. | 33,885 | 2,284,866 |
| Delta Air Lines, Inc. | 194,206 | 8,502,339 |
| FedEx Corp. | 63,230 | 9,523,070 |
| Genesee & Wyoming, Inc., Class A * | 12,195 | 833,894 |
| Hertz Global Holdings, Inc. * | 103,136 | 1,900,796 |
| J.B. Hunt Transport Services, Inc. | 20,997 | 1,528,162 |
| Kansas City Southern | 25,299 | 2,346,229 |
| Kirby Corp. * | 13,573 | 957,304 |
| Southwest Airlines Co. | 164,378 | 6,032,673 |
| Union Pacific Corp. | 206,543 | 17,708,997 |
| United Continental Holdings, Inc. * | 90,585 | 5,160,627 |
| United Parcel Service, Inc., Class B | 163,937 | 16,008,448 |
| 80,240,700 | ||
| Utilities 0.1% | ||
| Calpine Corp. * | 81,678 | 1,301,948 |
| ITC Holdings Corp. | 35,916 | 1,174,453 |
| 2,476,401 | ||
| Total Common Stock | ||
| (Cost $1,921,151,032) | 2,238,699,341 | |
| Other Investment Companies 0.4% of net assets | ||
| Equity Fund 0.1% | ||
| iShares Russell 1000 Growth ETF | 20,000 | 1,916,000 |
| Money Market Fund 0.0% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c) | 204,594 | 204,594 |
| Security | Number of Shares | Value ($) |
| Securities Lending Collateral 0.3% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c) | 6,598,599 | 6,598,599 |
| Total Other Investment Companies | ||
| (Cost $8,760,129) | 8,719,193 | |
End of Investments
At 08/31/15, the tax basis cost of the fund's investments was $1,929,937,747 and the unrealized appreciation and depreciation were $380,506,676 and ($63,025,889), respectively, with a net unrealized appreciation of $317,480,787.
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $6,850,810. Non-cash collateral pledged to the fund for securities on loan amounted to $331,973. |
| (b) | Issuer is affiliated with the fund's adviser. |
| (c) | The rate shown is the 7-day yield. |
| ETF — | Exchange Traded Fund |
In addition to the above, the fund held the following at 08/31/15:
| Number of Contracts | Contract Value ($) | Unrealized Depreciation ($) | ||||
| Futures Contracts | ||||||
| S&P 500 Index, e-mini, Long, expires 09/18/15 | 30 | 2,953,800 | (25,633) | |||
32 See financial notes
Schwab U.S. Large-Cap Value ETF
Portfolio Holdings as of August 31, 2015
This section shows all the securities in the fund's portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be viewed and copied at the SEC's Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund's website at www.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.6% | Common Stock | 1,366,886,273 | 1,429,395,755 |
| 0.3% | Other Investment Companies | 4,667,322 | 4,662,205 |
| 99.9% | Total Investments | 1,371,553,595 | 1,434,057,960 |
| 0.1% | Other Assets and Liabilities, Net | 1,136,374 | |
| 100.0% | Net Assets | 1,435,194,334 | |
| Security | Number of Shares | Value ($) |
| Common Stock 99.6% of net assets | ||
| Automobiles & Components 1.7% | ||
| Autoliv, Inc. (a) | 13,790 | 1,408,648 |
| Delphi Automotive plc | 43,637 | 3,295,466 |
| Ford Motor Co. | 600,306 | 8,326,244 |
| General Motors Co. | 203,458 | 5,989,804 |
| Harley-Davidson, Inc. | 32,433 | 1,817,870 |
| Johnson Controls, Inc. | 99,279 | 4,084,338 |
| 24,922,370 | ||
| Banks 11.6% | ||
| Bank of America Corp. | 1,587,240 | 25,935,502 |
| BB&T Corp. | 115,938 | 4,280,431 |
| BOK Financial Corp. | 3,205 | 202,812 |
| Citigroup, Inc. | 456,654 | 24,421,856 |
| Citizens Financial Group, Inc. | 60,196 | 1,494,065 |
| Comerica, Inc. | 26,863 | 1,181,972 |
| Cullen/Frost Bankers, Inc. | 7,994 | 516,892 |
| Fifth Third Bancorp | 124,438 | 2,478,805 |
| First Republic Bank | 19,436 | 1,172,185 |
| Hudson City Bancorp, Inc. | 71,756 | 667,331 |
| Huntington Bancshares, Inc. | 121,770 | 1,328,511 |
| JPMorgan Chase & Co. | 559,589 | 35,869,655 |
| KeyCorp | 130,761 | 1,796,656 |
| M&T Bank Corp. | 20,072 | 2,373,313 |
| New York Community Bancorp, Inc. | 65,887 | 1,163,564 |
| People's United Financial, Inc. | 46,145 | 715,247 |
| Regions Financial Corp. | 205,495 | 1,970,697 |
| SunTrust Banks, Inc. | 79,075 | 3,192,258 |
| The PNC Financial Services Group, Inc. | 78,544 | 7,156,929 |
| U.S. Bancorp | 266,213 | 11,274,121 |
| Wells Fargo & Co. | 705,715 | 37,635,781 |
| 166,828,583 | ||
| Security | Number of Shares | Value ($) |
| Capital Goods 7.8% | ||
| AGCO Corp. | 12,742 | 624,868 |
| Allison Transmission Holdings, Inc. | 26,155 | 748,033 |
| Eaton Corp. plc | 67,985 | 3,879,224 |
| Emerson Electric Co. | 100,107 | 4,777,106 |
| General Dynamics Corp. | 47,421 | 6,735,205 |
| General Electric Co. | 1,518,201 | 37,681,749 |
| Honeywell International, Inc. | 117,773 | 11,691,326 |
| Hubbell, Inc., Class B | 8,042 | 793,504 |
| Ingersoll-Rand plc | 39,760 | 2,198,330 |
| Joy Global, Inc. | 14,480 | 350,705 |
| L-3 Communications Holdings, Inc. | 12,209 | 1,287,683 |
| Lockheed Martin Corp. | 40,644 | 8,176,760 |
| Masco Corp. | 52,997 | 1,390,111 |
| Northrop Grumman Corp. | 29,365 | 4,808,225 |
| Oshkosh Corp. | 12,374 | 520,327 |
| Owens Corning | 18,398 | 814,847 |
| Parker-Hannifin Corp. | 21,444 | 2,308,661 |
| Raytheon Co. | 46,128 | 4,730,888 |
| Rockwell Automation, Inc. | 20,472 | 2,289,384 |
| Rockwell Collins, Inc. | 20,080 | 1,643,548 |
| Textron, Inc. | 41,586 | 1,613,537 |
| The Timken Co. | 10,313 | 327,438 |
| Trinity Industries, Inc. | 23,277 | 628,246 |
| United Technologies Corp. | 125,198 | 11,469,389 |
| Xylem, Inc. | 27,115 | 879,882 |
| 112,368,976 | ||
| Commercial & Professional Services 0.6% | ||
| Cintas Corp. | 14,306 | 1,215,867 |
| Republic Services, Inc. | 37,556 | 1,539,045 |
| The ADT Corp. | 25,753 | 844,184 |
| Tyco International plc | 64,801 | 2,351,628 |
| Waste Management, Inc. | 64,452 | 3,226,467 |
| 9,177,191 | ||
| Consumer Durables & Apparel 0.7% | ||
| Coach, Inc. | 40,902 | 1,237,286 |
| Garmin Ltd. | 17,963 | 675,588 |
| Hasbro, Inc. | 17,033 | 1,270,492 |
| Leggett & Platt, Inc. | 20,203 | 897,417 |
| Mattel, Inc. | 50,276 | 1,177,967 |
| Newell Rubbermaid, Inc. | 40,776 | 1,717,893 |
| PulteGroup, Inc. | 50,299 | 1,040,686 |
| TopBuild Corp. * | 5,869 | 186,165 |
| Whirlpool Corp. | 11,994 | 2,016,191 |
| 10,219,685 | ||
| Consumer Services 1.6% | ||
| Aramark | 29,066 | 910,928 |
| Carnival Corp. | 68,509 | 3,372,698 |
| Darden Restaurants, Inc. | 19,698 | 1,339,661 |
| H&R Block, Inc. | 40,917 | 1,391,996 |
| McDonald's Corp. | 145,282 | 13,804,696 |
| MGM Resorts International * | 64,211 | 1,311,831 |
| Wyndham Worldwide Corp. | 17,763 | 1,358,514 |
| 23,490,324 | ||
See financial notes 33
Schwab U.S. Large-Cap Value ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Diversified Financials 3.3% | ||
| Capital One Financial Corp. | 82,862 | 6,442,521 |
| CME Group, Inc. | 48,055 | 4,538,314 |
| Discover Financial Services | 67,673 | 3,636,070 |
| Eaton Vance Corp. | 17,668 | 612,550 |
| Invesco Ltd. | 64,425 | 2,197,537 |
| Legg Mason, Inc. | 15,045 | 666,945 |
| Navient Corp. | 62,494 | 799,298 |
| Northern Trust Corp. | 32,830 | 2,292,847 |
| Santander Consumer USA Holdings, Inc. * | 15,049 | 338,001 |
| State Street Corp. | 62,325 | 4,482,414 |
| Synchrony Financial * | 18,494 | 609,377 |
| The Bank of New York Mellon Corp. | 168,649 | 6,712,230 |
| The Goldman Sachs Group, Inc. | 60,839 | 11,474,236 |
| The NASDAQ OMX Group, Inc. | 18,023 | 922,597 |
| Voya Financial, Inc. | 29,776 | 1,282,750 |
| 47,007,687 | ||
| Energy 9.1% | ||
| Apache Corp. | 54,611 | 2,470,602 |
| Chesapeake Energy Corp. (a) | 77,446 | 604,853 |
| Chevron Corp. | 284,197 | 23,017,115 |
| Cobalt International Energy, Inc. * | 48,246 | 386,450 |
| Columbia Pipeline Group, Inc. | 46,855 | 1,188,243 |
| ConocoPhillips | 186,740 | 9,178,271 |
| CONSOL Energy, Inc. (a) | 34,212 | 521,049 |
| CVR Energy, Inc. | 2,976 | 119,665 |
| Diamond Offshore Drilling, Inc. (a) | 8,964 | 212,536 |
| Ensco plc, Class A | 34,808 | 630,373 |
| Exxon Mobil Corp. | 629,540 | 47,366,590 |
| Helmerich & Payne, Inc. | 16,187 | 955,195 |
| Kinder Morgan, Inc. | 262,599 | 8,510,834 |
| Marathon Oil Corp. | 100,559 | 1,738,665 |
| Marathon Petroleum Corp. | 82,359 | 3,896,404 |
| Murphy Oil Corp. | 24,841 | 770,071 |
| Noble Corp. plc | 37,757 | 491,596 |
| Occidental Petroleum Corp. | 116,202 | 8,483,908 |
| Phillips 66 | 81,822 | 6,469,666 |
| QEP Resources, Inc. | 24,657 | 346,184 |
| Spectra Energy Corp. | 102,007 | 2,965,343 |
| The Williams Cos., Inc. | 102,043 | 4,918,473 |
| Transocean Ltd. (a) | 53,140 | 756,182 |
| Valero Energy Corp. | 77,483 | 4,597,841 |
| 130,596,109 | ||
| Food & Staples Retailing 1.7% | ||
| Sprouts Farmers Market, Inc. * | 21,881 | 445,716 |
| Sysco Corp. | 89,645 | 3,574,146 |
| The Kroger Co. | 147,762 | 5,097,789 |
| Wal-Mart Stores, Inc. | 238,052 | 15,409,106 |
| 24,526,757 | ||
| Food, Beverage & Tobacco 7.8% | ||
| Altria Group, Inc. | 296,887 | 15,907,205 |
| Archer-Daniels-Midland Co. | 93,087 | 4,187,984 |
| Bunge Ltd. | 21,795 | 1,579,048 |
| Campbell Soup Co. | 26,533 | 1,273,319 |
| Coca-Cola Enterprises, Inc. | 33,510 | 1,725,430 |
| Security | Number of Shares | Value ($) |
| ConAgra Foods, Inc. | 64,935 | 2,706,491 |
| Dr. Pepper Snapple Group, Inc. | 27,135 | 2,082,068 |
| Flowers Foods, Inc. | 27,491 | 638,066 |
| General Mills, Inc. | 91,428 | 5,189,453 |
| Hormel Foods Corp. | 19,990 | 1,221,389 |
| Ingredion, Inc. | 10,999 | 949,654 |
| Kellogg Co. | 38,100 | 2,525,268 |
| McCormick & Co., Inc. Non-Voting Shares | 19,270 | 1,527,726 |
| Molson Coors Brewing Co., Class B | 23,610 | 1,607,605 |
| Mondelez International, Inc., Class A | 246,477 | 10,440,766 |
| Philip Morris International, Inc. | 234,677 | 18,727,224 |
| Pilgrim's Pride Corp. (a) | 9,197 | 192,907 |
| Reynolds American, Inc. | 62,751 | 5,255,396 |
| The Coca-Cola Co. | 590,240 | 23,208,237 |
| The J.M. Smucker Co. | 15,097 | 1,777,219 |
| The Kraft Heinz Co. | 89,589 | 6,509,537 |
| Tyson Foods, Inc., Class A | 43,626 | 1,844,507 |
| 111,076,499 | ||
| Health Care Equipment & Services 2.7% | ||
| Abbott Laboratories | 225,862 | 10,229,290 |
| Anthem, Inc. | 40,205 | 5,670,915 |
| Baxter International, Inc. | 82,500 | 3,172,125 |
| Boston Scientific Corp. * | 201,992 | 3,381,346 |
| Cardinal Health, Inc. | 49,635 | 4,083,471 |
| Humana, Inc. | 22,782 | 4,164,322 |
| IMS Health Holdings, Inc. * | 18,482 | 552,057 |
| Patterson Cos., Inc. | 13,016 | 596,523 |
| Quest Diagnostics, Inc. | 21,531 | 1,459,802 |
| St. Jude Medical, Inc. | 42,334 | 2,997,671 |
| Zimmer Biomet Holdings, Inc. | 25,710 | 2,662,528 |
| 38,970,050 | ||
| Household & Personal Products 2.6% | ||
| Avon Products, Inc. | 63,830 | 331,278 |
| Coty, Inc., Class A * | 9,467 | 286,945 |
| Kimberly-Clark Corp. | 54,954 | 5,854,249 |
| The Clorox Co. | 19,820 | 2,203,389 |
| The Procter & Gamble Co. | 408,567 | 28,873,430 |
| 37,549,291 | ||
| Insurance 5.6% | ||
| ACE Ltd. | 49,451 | 5,051,914 |
| Aflac, Inc. | 66,248 | 3,882,133 |
| American Financial Group, Inc. | 10,636 | 734,522 |
| American International Group, Inc. | 200,999 | 12,128,280 |
| Aon plc | 42,221 | 3,945,130 |
| Arthur J. Gallagher & Co. | 26,951 | 1,178,298 |
| Axis Capital Holdings Ltd. | 15,100 | 845,600 |
| Brown & Brown, Inc. | 17,046 | 546,495 |
| Cincinnati Financial Corp. | 21,914 | 1,146,760 |
| CNA Financial Corp. | 4,274 | 153,778 |
| FNF Group | 41,159 | 1,498,599 |
| Genworth Financial, Inc., Class A * | 73,947 | 383,045 |
| HCC Insurance Holdings, Inc. | 15,108 | 1,167,395 |
| Lincoln National Corp. | 38,902 | 1,975,832 |
| Loews Corp. | 45,377 | 1,653,992 |
| Marsh & McLennan Cos., Inc. | 81,068 | 4,355,784 |
| MetLife, Inc. | 168,138 | 8,423,714 |
34 See financial notes
Schwab U.S. Large-Cap Value ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Principal Financial Group, Inc. | 40,788 | 2,053,676 |
| Prudential Financial, Inc. | 68,507 | 5,528,515 |
| Reinsurance Group of America, Inc. | 8,395 | 762,937 |
| The Allstate Corp. | 62,669 | 3,652,349 |
| The Chubb Corp. | 34,953 | 4,222,672 |
| The Hartford Financial Services Group, Inc. | 62,773 | 2,884,419 |
| The Progressive Corp. | 80,191 | 2,402,522 |
| The Travelers Cos., Inc. | 48,207 | 4,799,007 |
| Torchmark Corp. | 19,345 | 1,130,909 |
| Unum Group | 37,787 | 1,267,376 |
| Willis Group Holdings plc | 26,407 | 1,137,878 |
| XL Group plc | 45,720 | 1,704,899 |
| 80,618,430 | ||
| Materials 3.2% | ||
| Air Products & Chemicals, Inc. | 29,029 | 4,050,416 |
| Albemarle Corp. | 16,540 | 747,773 |
| Alcoa, Inc. | 198,336 | 1,874,275 |
| Ashland, Inc. | 9,494 | 996,585 |
| Avery Dennison Corp. | 13,548 | 786,868 |
| Celanese Corp., Series A | 22,969 | 1,392,840 |
| E.I. du Pont de Nemours & Co. | 136,935 | 7,052,152 |
| Eastman Chemical Co. | 22,084 | 1,600,207 |
| Freeport-McMoRan, Inc. | 158,236 | 1,683,631 |
| Huntsman Corp. | 30,236 | 499,801 |
| International Flavors & Fragrances, Inc. | 12,081 | 1,323,473 |
| International Paper Co. | 63,613 | 2,744,265 |
| Newmont Mining Corp. | 80,771 | 1,378,761 |
| Nucor Corp. | 47,448 | 2,054,024 |
| Owens-Illinois, Inc. * | 23,276 | 485,305 |
| Reliance Steel & Aluminum Co. | 11,456 | 665,823 |
| RPM International, Inc. | 19,835 | 869,765 |
| Sealed Air Corp. | 31,051 | 1,597,574 |
| The Chemours Co. | 27,337 | 264,349 |
| The Dow Chemical Co. | 163,960 | 7,174,890 |
| The Mosaic Co. | 47,437 | 1,936,853 |
| Vulcan Materials Co. | 20,263 | 1,897,022 |
| Westlake Chemical Corp. | 6,461 | 356,841 |
| WestRock Co. | 38,828 | 2,304,442 |
| 45,737,935 | ||
| Media 1.8% | ||
| Cablevision Systems Corp., Class A | 31,864 | 802,017 |
| CBS Corp., Class B Non-Voting Shares | 69,029 | 3,122,872 |
| Gannett Co., Inc. * | 16,727 | 219,291 |
| News Corp., Class A * | 74,154 | 1,010,719 |
| Omnicom Group, Inc. | 37,414 | 2,505,990 |
| TEGNA, Inc. | 33,512 | 797,250 |
| The Interpublic Group of Cos., Inc. | 62,752 | 1,184,758 |
| Time Warner, Inc. | 125,005 | 8,887,855 |
| Twenty-First Century Fox, Inc., Class A | 268,066 | 7,342,328 |
| 25,873,080 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 10.2% | ||
| AbbVie, Inc. | 259,929 | 16,222,169 |
| Baxalta, Inc. * | 82,500 | 2,899,875 |
| Security | Number of Shares | Value ($) |
| Bristol-Myers Squibb Co. | 252,414 | 15,011,061 |
| Eli Lilly & Co. | 147,497 | 12,146,378 |
| Hospira, Inc. * | 25,757 | 2,317,357 |
| Johnson & Johnson | 417,038 | 39,193,231 |
| Merck & Co., Inc. | 427,635 | 23,028,145 |
| Mylan N.V. * | 62,326 | 3,090,746 |
| PerkinElmer, Inc. | 18,048 | 878,577 |
| Pfizer, Inc. | 925,825 | 29,830,081 |
| Quintiles Transnational Holdings, Inc. * | 14,496 | 1,080,097 |
| 145,697,717 | ||
| Real Estate 2.8% | ||
| Alexandria Real Estate Equities, Inc. | 11,044 | 949,674 |
| American Capital Agency Corp. | 52,478 | 1,003,904 |
| Annaly Capital Management, Inc. | 141,111 | 1,419,577 |
| Apartment Investment & Management Co., Class A | 22,739 | 819,286 |
| Brixmor Property Group, Inc. | 27,661 | 631,224 |
| Camden Property Trust | 12,765 | 919,463 |
| Corrections Corp. of America | 17,256 | 506,981 |
| DDR Corp. | 47,906 | 732,483 |
| Duke Realty Corp. | 49,496 | 893,898 |
| Equity Residential | 55,215 | 3,934,069 |
| General Growth Properties, Inc. | 93,779 | 2,380,111 |
| HCP, Inc. | 70,093 | 2,597,647 |
| Health Care REIT, Inc. | 52,420 | 3,320,807 |
| Iron Mountain, Inc. | 27,279 | 773,087 |
| Kilroy Realty Corp. | 13,399 | 869,059 |
| Kimco Realty Corp. | 61,277 | 1,412,435 |
| Lamar Advertising Co., Class A | 11,373 | 606,636 |
| Liberty Property Trust | 22,020 | 676,895 |
| National Retail Properties, Inc. | 19,902 | 691,594 |
| Plum Creek Timber Co., Inc. | 26,201 | 1,008,476 |
| Prologis, Inc. | 78,143 | 2,969,434 |
| Rayonier, Inc. | 19,907 | 457,861 |
| Realty Income Corp. | 36,339 | 1,623,990 |
| Regency Centers Corp. | 13,030 | 772,809 |
| Senior Housing Properties Trust | 37,563 | 589,739 |
| The Macerich Co. | 21,190 | 1,614,254 |
| UDR, Inc. | 40,800 | 1,317,840 |
| VEREIT, Inc. | 135,248 | 1,100,919 |
| Weingarten Realty Investors | 16,477 | 521,332 |
| Weyerhaeuser Co. | 78,788 | 2,201,337 |
| WP Carey, Inc. | 14,905 | 856,590 |
| 40,173,411 | ||
| Retailing 1.5% | ||
| Best Buy Co., Inc. | 44,699 | 1,642,241 |
| Dillard's, Inc., Class A | 3,853 | 356,441 |
| Foot Locker, Inc. | 21,344 | 1,510,942 |
| GameStop Corp., Class A (a) | 16,522 | 701,855 |
| Genuine Parts Co. | 22,793 | 1,902,988 |
| Kohl's Corp. | 30,479 | 1,555,343 |
| Macy's, Inc. | 51,340 | 3,009,037 |
| Staples, Inc. | 95,966 | 1,363,677 |
| Target Corp. | 95,833 | 7,447,182 |
| The Gap, Inc. | 38,979 | 1,278,901 |
| 20,768,607 | ||
See financial notes 35
Schwab U.S. Large-Cap Value ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Semiconductors & Semiconductor Equipment 2.8% | ||
| Analog Devices, Inc. | 48,013 | 2,682,006 |
| Applied Materials, Inc. | 185,696 | 2,986,920 |
| Intel Corp. | 716,890 | 20,460,041 |
| KLA-Tencor Corp. | 24,432 | 1,224,288 |
| Linear Technology Corp. | 35,480 | 1,429,134 |
| Marvell Technology Group Ltd. | 62,847 | 708,286 |
| Maxim Integrated Products, Inc. | 41,990 | 1,413,803 |
| Microchip Technology, Inc. | 29,819 | 1,267,308 |
| Texas Instruments, Inc. | 157,822 | 7,550,204 |
| 39,721,990 | ||
| Software & Services 6.4% | ||
| Amdocs Ltd. | 24,134 | 1,380,706 |
| CA, Inc. | 47,618 | 1,299,495 |
| Cadence Design Systems, Inc. * | 41,978 | 840,400 |
| Computer Sciences Corp. | 21,473 | 1,331,111 |
| International Business Machines Corp. | 137,662 | 20,358,833 |
| Microsoft Corp. | 1,219,793 | 53,085,392 |
| Paychex, Inc. | 48,634 | 2,171,995 |
| Solera Holdings, Inc. | 10,166 | 489,696 |
| Symantec Corp. | 102,972 | 2,109,896 |
| The Western Union Co. | 78,951 | 1,455,857 |
| Total System Services, Inc. | 24,192 | 1,108,719 |
| Xerox Corp. | 155,548 | 1,581,923 |
| Yahoo! Inc. * | 131,671 | 4,245,073 |
| 91,459,096 | ||
| Technology Hardware & Equipment 3.2% | ||
| Arrow Electronics, Inc. * | 14,565 | 814,475 |
| Avnet, Inc. | 20,511 | 869,666 |
| Cisco Systems, Inc. | 763,393 | 19,756,611 |
| Corning, Inc. | 192,383 | 3,310,911 |
| Harris Corp. | 18,843 | 1,447,519 |
| Hewlett-Packard Co. | 273,518 | 7,674,915 |
| Jabil Circuit, Inc. | 30,618 | 592,458 |
| Motorola Solutions, Inc. | 28,912 | 1,874,076 |
| NCR Corp. * | 24,753 | 621,053 |
| Seagate Technology plc | 47,134 | 2,422,688 |
| TE Connectivity Ltd. | 62,096 | 3,681,672 |
| Western Digital Corp. | 32,728 | 2,682,387 |
| 45,748,431 | ||
| Telecommunication Services 4.4% | ||
| AT&T, Inc. | 925,597 | 30,729,820 |
| CenturyLink, Inc. | 84,840 | 2,294,074 |
| Frontier Communications Corp. | 184,098 | 933,377 |
| Sprint Corp. * | 117,566 | 594,884 |
| Verizon Communications, Inc. | 613,748 | 28,238,545 |
| Windstream Holdings, Inc. (a) | 14,640 | 105,262 |
| Zayo Group Holdings, Inc. * | 6,593 | 184,406 |
| 63,080,368 | ||
| Security | Number of Shares | Value ($) |
| Transportation 0.6% | ||
| CSX Corp. | 149,488 | 4,092,982 |
| Expeditors International of Washington, Inc. | 29,029 | 1,421,550 |
| Norfolk Southern Corp. | 45,988 | 3,582,925 |
| 9,097,457 | ||
| Utilities 5.9% | ||
| AES Corp. | 104,763 | 1,257,156 |
| AGL Resources, Inc. | 17,766 | 1,083,548 |
| Alliant Energy Corp. | 16,343 | 926,158 |
| Ameren Corp. | 36,098 | 1,454,388 |
| American Electric Power Co., Inc. | 75,575 | 4,102,967 |
| American Water Works Co., Inc. | 26,751 | 1,389,447 |
| Aqua America, Inc. | 25,674 | 651,093 |
| CenterPoint Energy, Inc. | 64,042 | 1,192,462 |
| CMS Energy Corp. | 43,603 | 1,429,306 |
| Consolidated Edison, Inc. | 43,654 | 2,746,273 |
| Dominion Resources, Inc. | 89,491 | 6,241,997 |
| DTE Energy Co. | 26,281 | 2,051,495 |
| Duke Energy Corp. | 104,818 | 7,432,644 |
| Edison International | 48,517 | 2,837,274 |
| Entergy Corp. | 26,741 | 1,746,990 |
| Eversource Energy | 47,153 | 2,227,508 |
| Exelon Corp. | 130,808 | 4,023,654 |
| FirstEnergy Corp. | 62,615 | 2,001,175 |
| MDU Resources Group, Inc. | 28,161 | 504,364 |
| National Fuel Gas Co. | 12,397 | 668,942 |
| NextEra Energy, Inc. | 68,072 | 6,698,966 |
| NiSource, Inc. | 46,855 | 786,696 |
| NRG Energy, Inc. | 50,270 | 1,001,378 |
| OGE Energy Corp. | 29,709 | 833,040 |
| Pepco Holdings, Inc. | 39,645 | 911,042 |
| PG&E Corp. | 73,454 | 3,641,849 |
| Pinnacle West Capital Corp. | 16,421 | 977,542 |
| PPL Corp. | 101,619 | 3,149,173 |
| Public Service Enterprise Group, Inc. | 77,234 | 3,108,669 |
| SCANA Corp. | 21,198 | 1,121,162 |
| Sempra Energy | 35,285 | 3,346,782 |
| TECO Energy, Inc. | 34,856 | 734,416 |
| The Southern Co. | 137,935 | 5,987,758 |
| UGI Corp. | 26,153 | 891,294 |
| WEC Energy Group, Inc. | 46,750 | 2,227,638 |
| Westar Energy, Inc. | 20,763 | 758,888 |
| Xcel Energy, Inc. | 75,321 | 2,540,577 |
| 84,685,711 | ||
| Total Common Stock | ||
| (Cost $1,366,886,273) | 1,429,395,755 | |
| Other Investment Companies 0.3% of net assets | ||
| Equity Fund 0.1% | ||
| iShares Russell 1000 Value ETF (a) | 8,000 | 774,160 |
| Money Market Fund 0.0% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b) | 308,513 | 308,513 |
36 See financial notes
Schwab U.S. Large-Cap Value ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Securities Lending Collateral 0.2% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b) | 3,579,532 | 3,579,532 |
| Total Other Investment Companies | ||
| (Cost $4,667,322) | 4,662,205 | |
End of Investments
At 08/31/15, the tax basis cost of the fund's investments was $1,371,731,239 and the unrealized appreciation and depreciation were $138,383,286 and ($76,056,565), respectively, with a net unrealized appreciation $62,326,721.
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $3,916,690. Non-cash collateral pledged to the fund for securities on loan amounted to $387,720. |
| (b) | The rate shown is the 7-day yield. |
| ETF — | Exchange Traded Fund |
| REIT — | Real Estate Investment Trust |
See financial notes 37
Schwab U.S. Mid-Cap ETF
Portfolio Holdings as of August 31, 2015
This section shows all the securities in the fund's portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be viewed and copied at the SEC's Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund's website at www.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.8% | Common Stock | 1,734,587,881 | 1,837,931,571 |
| 1.4% | Other Investment Companies | 25,229,153 | 25,229,153 |
| 101.2% | Total Investments | 1,759,817,034 | 1,863,160,724 |
| (1.2%) | Other Assets and Liabilities, Net | (21,375,712) | |
| 100.0% | Net Assets | 1,841,785,012 | |
| Security | Number of Shares | Value ($) |
| Common Stock 99.8% of net assets | ||
| Automobiles & Components 1.1% | ||
| Dana Holding Corp. | 129,045 | 2,263,449 |
| Gentex Corp. | 218,707 | 3,389,959 |
| Lear Corp. | 58,256 | 5,988,134 |
| The Goodyear Tire & Rubber Co. | 201,592 | 6,001,395 |
| Visteon Corp. * | 33,130 | 3,301,736 |
| 20,944,673 | ||
| Banks 3.7% | ||
| Associated Banc-Corp. | 112,315 | 2,062,103 |
| BankUnited, Inc. | 78,573 | 2,800,342 |
| BOK Financial Corp. | 15,649 | 990,269 |
| City National Corp. | 35,646 | 3,129,006 |
| Commerce Bancshares, Inc. | 62,148 | 2,784,852 |
| Cullen/Frost Bankers, Inc. | 40,391 | 2,611,682 |
| East West Bancorp, Inc. | 108,006 | 4,364,522 |
| First Niagara Financial Group, Inc. | 267,693 | 2,476,160 |
| First Republic Bank | 99,587 | 6,006,092 |
| Hudson City Bancorp, Inc. | 359,879 | 3,346,875 |
| Huntington Bancshares, Inc. | 605,690 | 6,608,078 |
| Nationstar Mortgage Holdings, Inc. *(a) | 26,480 | 442,746 |
| New York Community Bancorp, Inc. | 324,989 | 5,739,306 |
| Ocwen Financial Corp. *(a) | 74,913 | 557,353 |
| People's United Financial, Inc. | 225,783 | 3,499,636 |
| Popular, Inc. * | 77,498 | 2,275,341 |
| Prosperity Bancshares, Inc. | 47,263 | 2,442,079 |
| Signature Bank * | 37,328 | 4,982,915 |
| SVB Financial Group * | 38,010 | 4,754,291 |
| TFS Financial Corp. | 62,818 | 1,078,585 |
| Zions Bancorp | 151,958 | 4,406,782 |
| 67,359,015 | ||
| Security | Number of Shares | Value ($) |
| Capital Goods 11.2% | ||
| A.O. Smith Corp. | 54,573 | 3,520,504 |
| Acuity Brands, Inc. | 32,276 | 6,289,624 |
| AECOM * | 109,481 | 3,010,727 |
| AGCO Corp. | 59,364 | 2,911,211 |
| Allegion plc | 71,821 | 4,281,250 |
| Allison Transmission Holdings, Inc. | 122,415 | 3,501,069 |
| Armstrong World Industries, Inc. * | 34,236 | 1,903,864 |
| B/E Aerospace, Inc. | 77,879 | 3,796,601 |
| Babcock & Wilcox Enterprises, Inc. * | 40,328 | 744,052 |
| BWX Technologies, Inc. | 80,640 | 2,138,573 |
| Carlisle Cos., Inc. | 48,250 | 4,858,775 |
| Chicago Bridge & Iron Co. N.V. (a) | 71,969 | 3,186,787 |
| CLARCOR, Inc. | 35,503 | 2,001,304 |
| Colfax Corp. * | 71,202 | 2,761,926 |
| Crane Co. | 35,725 | 1,876,991 |
| Donaldson Co., Inc. | 95,898 | 3,002,566 |
| EMCOR Group, Inc. | 48,668 | 2,243,108 |
| Fortune Brands Home & Security, Inc. | 120,425 | 5,762,336 |
| Generac Holdings, Inc. * | 51,170 | 1,582,176 |
| Graco, Inc. | 43,316 | 2,988,371 |
| HD Supply Holdings, Inc. * | 133,265 | 4,397,745 |
| Hexcel Corp. | 71,842 | 3,467,095 |
| Hubbell, Inc., Class B | 39,637 | 3,910,983 |
| IDEX Corp. | 57,594 | 4,136,977 |
| ITT Corp. | 66,480 | 2,487,017 |
| Jacobs Engineering Group, Inc. * | 95,041 | 3,840,607 |
| Joy Global, Inc. | 64,861 | 1,570,933 |
| KBR, Inc. | 105,691 | 1,843,251 |
| Kennametal, Inc. | 59,709 | 1,821,125 |
| KLX, Inc. * | 40,602 | 1,587,538 |
| Lennox International, Inc. | 31,324 | 3,697,485 |
| Lincoln Electric Holdings, Inc. | 58,305 | 3,419,588 |
| Masco Corp. | 254,108 | 6,665,253 |
| MSC Industrial Direct Co., Inc., Class A | 36,221 | 2,451,799 |
| Nordson Corp. | 43,854 | 2,917,168 |
| NOW, Inc. *(a) | 79,664 | 1,359,068 |
| Oshkosh Corp. | 58,414 | 2,456,309 |
| Owens Corning | 88,357 | 3,913,332 |
| Quanta Services, Inc. * | 156,720 | 3,798,893 |
| Regal Beloit Corp. | 32,810 | 2,187,443 |
| Sensata Technologies Holding N.V. * | 126,982 | 6,018,947 |
| Snap-on, Inc. | 43,581 | 6,962,936 |
| SolarCity Corp. *(a) | 39,288 | 1,896,825 |
| Spirit AeroSystems Holdings, Inc., Class A * | 96,500 | 4,932,115 |
| SPX Corp. | 30,907 | 1,815,168 |
| Teledyne Technologies, Inc. * | 26,076 | 2,553,101 |
| Terex Corp. | 79,509 | 1,854,945 |
| The Manitowoc Co., Inc. | 103,174 | 1,762,212 |
| The Middleby Corp. * | 43,145 | 4,683,390 |
| The Timken Co. | 57,604 | 1,828,927 |
| The Toro Co. | 41,578 | 2,964,511 |
| TransDigm Group, Inc. * | 37,210 | 8,551,974 |
| Trinity Industries, Inc. | 113,653 | 3,067,494 |
| Triumph Group, Inc. | 39,295 | 1,940,780 |
| United Rentals, Inc. * | 72,327 | 5,014,431 |
38 See financial notes
Schwab U.S. Mid-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| USG Corp. * | 68,402 | 2,086,945 |
| Valmont Industries, Inc. | 17,775 | 1,889,305 |
| WABCO Holdings, Inc. * | 40,065 | 4,620,296 |
| Wabtec Corp. | 72,309 | 6,924,310 |
| Watsco, Inc. | 20,380 | 2,495,735 |
| WESCO International, Inc. * | 32,106 | 1,796,973 |
| Woodward, Inc. | 43,873 | 2,000,609 |
| Xylem, Inc. | 135,909 | 4,410,247 |
| 206,363,600 | ||
| Commercial & Professional Services 3.1% | ||
| Cintas Corp. | 69,770 | 5,929,752 |
| Clean Harbors, Inc. * | 39,618 | 1,946,036 |
| Copart, Inc. * | 88,321 | 3,093,002 |
| Equifax, Inc. | 88,778 | 8,691,366 |
| KAR Auction Services, Inc. | 106,294 | 3,937,130 |
| ManpowerGroup, Inc. | 57,777 | 5,020,821 |
| Pitney Bowes, Inc. | 147,808 | 2,928,077 |
| Robert Half International, Inc. | 101,428 | 5,175,871 |
| Rollins, Inc. | 75,373 | 2,104,414 |
| The ADT Corp. | 129,518 | 4,245,600 |
| The Dun & Bradstreet Corp. | 27,090 | 2,870,727 |
| Towers Watson & Co., Class A | 50,517 | 5,997,883 |
| Waste Connections, Inc. | 92,211 | 4,385,555 |
| 56,326,234 | ||
| Consumer Durables & Apparel 5.6% | ||
| Brunswick Corp. | 69,090 | 3,434,464 |
| Carter's, Inc. | 39,534 | 3,886,588 |
| D.R. Horton, Inc. | 249,619 | 7,580,929 |
| Fossil Group, Inc. * | 28,915 | 1,780,586 |
| Hanesbrands, Inc. | 297,409 | 8,954,985 |
| Harman International Industries, Inc. | 53,152 | 5,195,076 |
| Hasbro, Inc. | 82,417 | 6,147,484 |
| Jarden Corp. * | 146,769 | 7,535,120 |
| Leggett & Platt, Inc. | 103,487 | 4,596,893 |
| Lennar Corp., Class A | 133,462 | 6,793,216 |
| lululemon athletica, Inc. * | 77,471 | 4,958,919 |
| Mohawk Industries, Inc. * | 46,086 | 9,077,559 |
| Newell Rubbermaid, Inc. | 203,019 | 8,553,190 |
| NVR, Inc. * | 2,883 | 4,382,016 |
| Polaris Industries, Inc. | 45,165 | 5,865,579 |
| PulteGroup, Inc. | 247,806 | 5,127,106 |
| Toll Brothers, Inc. * | 120,243 | 4,445,384 |
| TopBuild Corp. * | 27,824 | 882,577 |
| Tupperware Brands Corp. | 37,939 | 1,943,615 |
| Vista Outdoor, Inc. * | 47,229 | 2,208,428 |
| 103,349,714 | ||
| Consumer Services 2.7% | ||
| Aramark | 168,171 | 5,270,479 |
| Brinker International, Inc. | 46,629 | 2,477,399 |
| Darden Restaurants, Inc. | 93,819 | 6,380,630 |
| Domino's Pizza, Inc. | 41,721 | 4,419,923 |
| Dunkin' Brands Group, Inc. | 72,044 | 3,613,727 |
| Extended Stay America, Inc. | 30,612 | 574,587 |
| Graham Holdings Co., Class B | 3,282 | 2,171,240 |
| H&R Block, Inc. | 202,505 | 6,889,220 |
| Security | Number of Shares | Value ($) |
| Norwegian Cruise Line Holdings Ltd. * | 120,262 | 6,927,091 |
| Panera Bread Co., Class A * | 18,792 | 3,350,614 |
| Service Corp. International | 149,594 | 4,435,462 |
| Six Flags Entertainment Corp. | 66,985 | 3,012,315 |
| 49,522,687 | ||
| Diversified Financials 3.2% | ||
| CBOE Holdings, Inc. | 60,870 | 3,850,636 |
| E*TRADE Financial Corp. * | 215,274 | 5,659,553 |
| Eaton Vance Corp. | 88,466 | 3,067,116 |
| Federated Investors, Inc., Class B | 72,159 | 2,236,929 |
| Lazard Ltd., Class A | 96,629 | 4,805,360 |
| Legg Mason, Inc. | 71,572 | 3,172,787 |
| LendingClub Corp. * | 30,703 | 385,323 |
| LPL Financial Holdings, Inc. (a) | 55,923 | 2,249,223 |
| MSCI, Inc. | 83,747 | 5,068,368 |
| Navient Corp. | 298,522 | 3,818,096 |
| Raymond James Financial, Inc. | 95,211 | 5,045,231 |
| Santander Consumer USA Holdings, Inc. * | 71,521 | 1,606,362 |
| SEI Investments Co. | 97,720 | 4,942,678 |
| The NASDAQ OMX Group, Inc. | 87,989 | 4,504,157 |
| Voya Financial, Inc. | 159,986 | 6,892,197 |
| Waddell & Reed Financial, Inc., Class A | 63,187 | 2,468,716 |
| 59,772,732 | ||
| Energy 3.8% | ||
| Atwood Oceanics, Inc. | 35,364 | 675,806 |
| Cobalt International Energy, Inc. * | 215,916 | 1,729,487 |
| Core Laboratories N.V. (a) | 32,269 | 3,732,878 |
| CVR Energy, Inc. | 14,919 | 599,893 |
| Denbury Resources, Inc. | 286,653 | 1,244,074 |
| Diamond Offshore Drilling, Inc. (a) | 51,145 | 1,212,648 |
| Dril-Quip, Inc. * | 28,801 | 1,985,541 |
| Energen Corp. | 59,570 | 3,097,640 |
| EP Energy Corp., Class A *(a) | 26,884 | 190,608 |
| Frank's International N.V. (a) | 20,991 | 342,363 |
| Gulfport Energy Corp. * | 76,585 | 2,744,040 |
| Helmerich & Payne, Inc. | 79,534 | 4,693,301 |
| Kosmos Energy Ltd. * | 85,978 | 601,846 |
| Laredo Petroleum, Inc. *(a) | 97,345 | 991,946 |
| Nabors Industries Ltd. | 217,473 | 2,509,638 |
| Newfield Exploration Co. * | 121,539 | 4,048,464 |
| Noble Corp. plc | 179,135 | 2,332,338 |
| Oasis Petroleum, Inc. *(a) | 105,349 | 1,175,695 |
| Oceaneering International, Inc. | 73,867 | 3,236,852 |
| Oil States International, Inc. * | 37,986 | 1,077,663 |
| Patterson-UTI Energy, Inc. | 105,952 | 1,724,899 |
| QEP Resources, Inc. | 120,196 | 1,687,552 |
| Rowan Cos. plc, Class A | 97,318 | 1,748,804 |
| RPC, Inc. | 47,855 | 556,075 |
| SM Energy Co. | 49,155 | 1,803,988 |
| Superior Energy Services, Inc. | 112,068 | 1,783,002 |
| Targa Resources Corp. | 35,991 | 2,377,565 |
| Teekay Corp. | 36,388 | 1,337,623 |
| Tesoro Corp. | 93,783 | 8,628,974 |
| Ultra Petroleum Corp. *(a) | 115,444 | 983,583 |
| Western Refining, Inc. | 52,467 | 2,257,130 |
See financial notes 39
Schwab U.S. Mid-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Whiting Petroleum Corp. * | 153,796 | 2,972,877 |
| World Fuel Services Corp. | 53,717 | 2,076,162 |
| WPX Energy, Inc. * | 161,548 | 1,180,916 |
| 69,341,871 | ||
| Food & Staples Retailing 0.5% | ||
| Rite Aid Corp. * | 700,910 | 5,782,507 |
| Sprouts Farmers Market, Inc. * | 109,359 | 2,227,643 |
| United Natural Foods, Inc. * | 38,419 | 1,849,875 |
| 9,860,025 | ||
| Food, Beverage & Tobacco 1.3% | ||
| Flowers Foods, Inc. | 138,733 | 3,219,993 |
| Ingredion, Inc. | 53,420 | 4,612,283 |
| Pilgrim's Pride Corp. (a) | 37,434 | 785,178 |
| Pinnacle Foods, Inc. | 83,532 | 3,745,575 |
| Seaboard Corp. * | 223 | 740,414 |
| The Hain Celestial Group, Inc. * | 76,221 | 4,638,810 |
| The WhiteWave Foods Co. * | 129,218 | 5,962,118 |
| 23,704,371 | ||
| Health Care Equipment & Services 4.5% | ||
| Align Technology, Inc. * | 54,458 | 3,082,323 |
| athenahealth, Inc. * | 28,806 | 3,830,334 |
| Brookdale Senior Living, Inc. * | 137,087 | 3,758,926 |
| Centene Corp. * | 88,963 | 5,490,796 |
| Community Health Systems, Inc. * | 87,366 | 4,691,554 |
| DENTSPLY International, Inc. | 103,785 | 5,439,372 |
| Envision Healthcare Holdings, Inc. * | 137,310 | 5,625,591 |
| Hologic, Inc. * | 181,627 | 7,048,944 |
| IDEXX Laboratories, Inc. * | 69,496 | 4,966,879 |
| Inovalon Holdings, Inc., Class A * | 14,214 | 311,145 |
| MEDNAX, Inc. * | 71,098 | 5,726,944 |
| Patterson Cos., Inc. | 61,960 | 2,839,627 |
| Premier, Inc., Class A * | 23,224 | 827,936 |
| ResMed, Inc. | 105,227 | 5,465,490 |
| Sirona Dental Systems, Inc. * | 41,122 | 3,922,216 |
| Team Health Holdings, Inc. * | 54,360 | 3,193,106 |
| Teleflex, Inc. | 30,906 | 4,042,505 |
| Tenet Healthcare Corp. * | 76,271 | 3,754,821 |
| The Cooper Cos., Inc. | 36,151 | 5,871,645 |
| Veeva Systems, Inc., Class A * | 26,650 | 690,235 |
| WellCare Health Plans, Inc. * | 32,888 | 2,981,955 |
| 83,562,344 | ||
| Household & Personal Products 0.9% | ||
| Avon Products, Inc. | 317,211 | 1,646,325 |
| Coty, Inc., Class A * | 50,904 | 1,542,900 |
| Edgewell Personal Care Co. | 45,459 | 4,003,120 |
| Energizer Holdings, Inc. | 46,157 | 1,927,516 |
| Herbalife Ltd. *(a) | 51,513 | 2,965,603 |
| Nu Skin Enterprises, Inc., Class A | 45,187 | 2,064,142 |
| Spectrum Brands Holdings, Inc. | 20,924 | 2,056,411 |
| 16,206,017 | ||
| Security | Number of Shares | Value ($) |
| Insurance 6.3% | ||
| Alleghany Corp. * | 12,083 | 5,676,472 |
| Allied World Assurance Co. Holdings AG | 72,438 | 2,893,174 |
| American Financial Group, Inc. | 54,735 | 3,779,999 |
| American National Insurance Co. | 6,366 | 632,080 |
| AmTrust Financial Services, Inc. | 24,631 | 1,432,293 |
| Arch Capital Group Ltd. * | 94,241 | 6,434,775 |
| Arthur J. Gallagher & Co. | 124,775 | 5,455,163 |
| Assurant, Inc. | 50,236 | 3,735,047 |
| Assured Guaranty Ltd. | 111,609 | 2,819,243 |
| Axis Capital Holdings Ltd. | 75,921 | 4,251,576 |
| Brown & Brown, Inc. | 89,365 | 2,865,042 |
| Cincinnati Financial Corp. | 109,581 | 5,734,374 |
| CNO Financial Group, Inc. | 148,775 | 2,661,585 |
| Erie Indemnity Co., Class A | 18,896 | 1,548,905 |
| Everest Re Group Ltd. | 32,926 | 5,788,720 |
| FNF Group | 206,467 | 7,517,463 |
| Genworth Financial, Inc., Class A * | 333,431 | 1,727,173 |
| HCC Insurance Holdings, Inc. | 69,695 | 5,385,333 |
| Markel Corp. * | 10,426 | 8,588,417 |
| Old Republic International Corp. | 182,832 | 2,872,291 |
| PartnerRe Ltd. | 35,945 | 4,975,147 |
| Reinsurance Group of America, Inc. | 48,078 | 4,369,329 |
| RenaissanceRe Holdings Ltd. | 34,314 | 3,498,312 |
| Torchmark Corp. | 93,734 | 5,479,690 |
| Validus Holdings Ltd. | 63,721 | 2,821,566 |
| W.R. Berkley Corp. | 74,306 | 4,033,330 |
| White Mountains Insurance Group Ltd. | 4,499 | 3,236,176 |
| Willis Group Holdings plc | 130,704 | 5,632,035 |
| 115,844,710 | ||
| Materials 7.3% | ||
| Airgas, Inc. | 50,379 | 4,862,581 |
| Albemarle Corp. | 83,026 | 3,753,606 |
| Allegheny Technologies, Inc. | 81,907 | 1,581,624 |
| AptarGroup, Inc. | 46,815 | 3,153,458 |
| Ashland, Inc. | 45,275 | 4,752,517 |
| Avery Dennison Corp. | 67,603 | 3,926,382 |
| Axalta Coating Systems Ltd. * | 99,137 | 2,893,809 |
| Axiall Corp. | 45,283 | 1,143,849 |
| Bemis Co., Inc. | 73,220 | 3,105,992 |
| Carpenter Technology Corp. | 37,942 | 1,479,738 |
| Crown Holdings, Inc. * | 102,319 | 5,071,953 |
| Cytec Industries, Inc. | 53,492 | 3,969,107 |
| Eagle Materials, Inc. | 37,980 | 3,107,903 |
| Graphic Packaging Holding Co. | 243,914 | 3,439,187 |
| Huntsman Corp. | 158,570 | 2,621,162 |
| International Flavors & Fragrances, Inc. | 61,454 | 6,732,286 |
| Martin Marietta Materials, Inc. | 46,185 | 7,749,843 |
| NewMarket Corp. | 7,991 | 3,062,471 |
| Owens-Illinois, Inc. * | 123,253 | 2,569,825 |
| Packaging Corp. of America | 74,139 | 4,975,468 |
| Platform Specialty Products Corp. * | 97,322 | 1,862,743 |
| Reliance Steel & Aluminum Co. | 54,272 | 3,154,289 |
| Royal Gold, Inc. | 49,192 | 2,367,119 |
| RPM International, Inc. | 98,674 | 4,326,855 |
| Sealed Air Corp. | 154,845 | 7,966,775 |
40 See financial notes
Schwab U.S. Mid-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Silgan Holdings, Inc. | 30,398 | 1,591,639 |
| Sonoco Products Co. | 74,544 | 2,931,070 |
| Steel Dynamics, Inc. | 180,770 | 3,521,400 |
| The Scotts Miracle-Gro Co., Class A | 34,031 | 2,116,388 |
| The Valspar Corp. | 56,147 | 4,115,575 |
| Vulcan Materials Co. | 99,410 | 9,306,764 |
| W.R. Grace & Co. * | 54,577 | 5,399,848 |
| WestRock Co. | 193,685 | 11,495,205 |
| 134,108,431 | ||
| Media 2.1% | ||
| AMC Networks, Inc., Class A * | 44,225 | 3,201,005 |
| Cable One, Inc. * | 3,282 | 1,363,146 |
| Cablevision Systems Corp., Class A | 162,082 | 4,079,604 |
| Cinemark Holdings, Inc. | 77,766 | 2,764,581 |
| Discovery Communications, Inc., Class A *(a) | 110,319 | 2,934,485 |
| Gannett Co., Inc. * | 83,382 | 1,093,138 |
| Liberty Media Corp., Class A * | 72,726 | 2,709,043 |
| Lions Gate Entertainment Corp. | 74,584 | 2,736,487 |
| Morningstar, Inc. | 15,564 | 1,241,696 |
| Regal Entertainment Group, Class A | 62,862 | 1,195,635 |
| TEGNA, Inc. | 166,807 | 3,968,339 |
| The Interpublic Group of Cos., Inc. | 304,237 | 5,743,995 |
| The Madison Square Garden Co., Class A * | 43,324 | 3,051,743 |
| Tribune Media Co., Class A | 71,303 | 2,847,842 |
| 38,930,739 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 5.8% | ||
| Alkermes plc * | 112,894 | 6,723,967 |
| Bio-Rad Laboratories, Inc., Class A * | 15,055 | 2,097,613 |
| Bio-Techne Corp. | 27,763 | 2,623,048 |
| BioMarin Pharmaceutical, Inc. * | 118,821 | 15,356,426 |
| Bruker Corp. * | 84,540 | 1,553,845 |
| Endo International plc * | 151,500 | 11,665,500 |
| Hospira, Inc. * | 128,027 | 11,518,589 |
| Incyte Corp. * | 120,760 | 14,031,104 |
| Intercept Pharmaceuticals, Inc. * | 10,260 | 1,946,938 |
| Jazz Pharmaceuticals plc * | 45,497 | 7,680,804 |
| Juno Therapeutics, Inc. *(a) | 19,317 | 701,400 |
| Medivation, Inc. * | 58,507 | 5,152,127 |
| Mettler-Toledo International, Inc. * | 20,715 | 6,143,033 |
| PerkinElmer, Inc. | 83,900 | 4,084,252 |
| Puma Biotechnology, Inc. * | 14,008 | 1,287,615 |
| Quintiles Transnational Holdings, Inc. * | 74,116 | 5,522,383 |
| Seattle Genetics, Inc. * | 75,070 | 3,023,069 |
| United Therapeutics Corp. * | 34,555 | 5,204,674 |
| VWR Corp. * | 30,007 | 787,684 |
| 107,104,071 | ||
| Real Estate 10.3% | ||
| Alexandria Real Estate Equities, Inc. | 54,043 | 4,647,158 |
| American Campus Communities, Inc. | 83,152 | 2,847,956 |
| Security | Number of Shares | Value ($) |
| American Homes 4 Rent, Class A | 104,867 | 1,675,775 |
| Apartment Investment & Management Co., Class A | 115,797 | 4,172,166 |
| BioMed Realty Trust, Inc. | 150,131 | 2,777,424 |
| Brixmor Property Group, Inc. | 126,114 | 2,877,922 |
| Camden Property Trust | 64,397 | 4,638,516 |
| CBL & Associates Properties, Inc. | 127,789 | 1,901,500 |
| CBRE Group, Inc., Class A * | 212,445 | 6,802,489 |
| Chimera Investment Corp. | 149,444 | 2,093,710 |
| Communications Sales & Leasing, Inc. | 80,524 | 1,618,532 |
| Corrections Corp. of America | 91,508 | 2,688,505 |
| DDR Corp. | 221,898 | 3,392,820 |
| Douglas Emmett, Inc. | 103,789 | 2,867,690 |
| Duke Realty Corp. | 257,475 | 4,649,999 |
| Equity LifeStyle Properties, Inc. | 59,996 | 3,345,377 |
| Extra Space Storage, Inc. | 90,779 | 6,670,441 |
| Federal Realty Investment Trust | 51,325 | 6,625,031 |
| Forest City Enterprises, Inc., Class A * | 144,673 | 3,114,810 |
| Gaming & Leisure Properties, Inc. | 69,360 | 2,145,998 |
| Highwoods Properties, Inc. | 69,870 | 2,650,868 |
| Home Properties, Inc. | 43,054 | 3,195,037 |
| Hospitality Properties Trust | 115,815 | 2,978,762 |
| Iron Mountain, Inc. | 139,375 | 3,949,888 |
| Jones Lang LaSalle, Inc. | 33,524 | 4,990,718 |
| Kilroy Realty Corp. | 64,241 | 4,166,671 |
| Lamar Advertising Co., Class A | 61,366 | 3,273,262 |
| Liberty Property Trust | 112,549 | 3,459,756 |
| MFA Financial, Inc. | 280,427 | 1,993,836 |
| Mid-America Apartment Communities, Inc. | 55,724 | 4,379,349 |
| National Retail Properties, Inc. | 100,642 | 3,497,310 |
| Omega Healthcare Investors, Inc. | 118,557 | 4,004,855 |
| Outfront Media, Inc. | 104,018 | 2,353,927 |
| Paramount Group, Inc. | 108,230 | 1,779,301 |
| Piedmont Office Realty Trust, Inc., Class A | 115,989 | 1,967,173 |
| Plum Creek Timber Co., Inc. | 131,124 | 5,046,963 |
| Rayonier, Inc. | 95,062 | 2,186,426 |
| Realogy Holdings Corp. * | 110,027 | 4,434,088 |
| Realty Income Corp. | 172,786 | 7,721,806 |
| Regency Centers Corp. | 70,479 | 4,180,110 |
| Retail Properties of America, Inc., Class A | 172,071 | 2,348,769 |
| RLJ Lodging Trust | 98,283 | 2,706,714 |
| Senior Housing Properties Trust | 173,085 | 2,717,435 |
| SL Green Realty Corp. | 73,715 | 7,630,240 |
| Starwood Property Trust, Inc. | 174,567 | 3,714,786 |
| Tanger Factory Outlet Centers, Inc. | 72,437 | 2,291,907 |
| Taubman Centers, Inc. | 47,767 | 3,295,445 |
| The Howard Hughes Corp. * | 26,726 | 3,356,518 |
| Two Harbors Investment Corp. | 275,508 | 2,606,306 |
| UDR, Inc. | 191,031 | 6,170,301 |
| Urban Edge Properties | 71,874 | 1,502,885 |
| Weingarten Realty Investors | 84,434 | 2,671,492 |
| WP Carey, Inc. | 71,337 | 4,099,737 |
| 188,876,460 |
See financial notes 41
Schwab U.S. Mid-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Retailing 4.9% | ||
| Abercrombie & Fitch Co., Class A (a) | 50,977 | 1,012,403 |
| Advance Auto Parts, Inc. | 54,639 | 9,575,485 |
| AutoNation, Inc. * | 56,379 | 3,373,719 |
| Cabela's, Inc. * | 35,867 | 1,612,939 |
| Dick's Sporting Goods, Inc. | 72,099 | 3,614,323 |
| Dillard's, Inc., Class A | 17,937 | 1,659,352 |
| Foot Locker, Inc. | 102,860 | 7,281,459 |
| GameStop Corp., Class A (a) | 79,482 | 3,376,395 |
| GNC Holdings, Inc., Class A | 65,057 | 3,044,668 |
| Groupon, Inc. * | 275,920 | 1,241,640 |
| HSN, Inc. | 24,581 | 1,494,771 |
| J.C. Penney Co., Inc. * | 233,124 | 2,123,760 |
| LKQ Corp. * | 226,692 | 6,798,493 |
| Penske Automotive Group, Inc. | 32,581 | 1,648,599 |
| Sally Beauty Holdings, Inc. * | 95,616 | 2,499,402 |
| Sears Holdings Corp. *(a) | 33,004 | 880,547 |
| Signet Jewelers Ltd. | 60,522 | 8,352,036 |
| Staples, Inc. | 474,832 | 6,747,363 |
| Tractor Supply Co. | 101,723 | 8,677,989 |
| Ulta Salon, Cosmetics & Fragrance, Inc. * | 47,861 | 7,566,345 |
| Urban Outfitters, Inc. * | 73,237 | 2,260,094 |
| Williams-Sonoma, Inc. | 63,269 | 4,810,342 |
| zulily, Inc., Class A * | 20,611 | 365,845 |
| 90,017,969 | ||
| Semiconductors & Semiconductor Equipment 1.9% | ||
| Atmel Corp. | 316,603 | 2,586,647 |
| Cree, Inc. *(a) | 82,296 | 2,240,097 |
| First Solar, Inc. * | 58,578 | 2,802,372 |
| Freescale Semiconductor Ltd. * | 75,874 | 2,710,978 |
| Marvell Technology Group Ltd. | 319,541 | 3,601,227 |
| ON Semiconductor Corp. * | 332,643 | 3,178,404 |
| Skyworks Solutions, Inc. | 142,390 | 12,437,766 |
| SunEdison, Inc. * | 198,461 | 2,063,994 |
| Teradyne, Inc. | 158,636 | 2,861,793 |
| 34,483,278 | ||
| Software & Services 8.2% | ||
| Akamai Technologies, Inc. * | 134,400 | 9,584,064 |
| Amdocs Ltd. | 116,400 | 6,659,244 |
| ANSYS, Inc. * | 66,848 | 5,922,733 |
| Aspen Technology, Inc. * | 65,092 | 2,465,034 |
| Booz Allen Hamilton Holding Corp. | 73,756 | 1,969,285 |
| Broadridge Financial Solutions, Inc. | 88,739 | 4,684,532 |
| Cadence Design Systems, Inc. * | 215,173 | 4,307,763 |
| CDK Global, Inc. | 119,129 | 5,901,651 |
| Computer Sciences Corp. | 104,571 | 6,482,356 |
| CoStar Group, Inc. * | 24,095 | 4,265,779 |
| DST Systems, Inc. | 21,090 | 2,160,038 |
| FactSet Research Systems, Inc. | 28,893 | 4,562,782 |
| FireEye, Inc. * | 25,170 | 950,923 |
| Fortinet, Inc. * | 106,011 | 4,467,303 |
| Gartner, Inc. * | 61,363 | 5,247,150 |
| Genpact Ltd. * | 117,605 | 2,704,915 |
| Global Payments, Inc. | 49,363 | 5,498,545 |
| GoDaddy, Inc., Class A * | 15,752 | 395,060 |
| IAC/InterActiveCorp | 57,767 | 4,032,137 |
| Security | Number of Shares | Value ($) |
| Jack Henry & Associates, Inc. | 61,348 | 4,169,210 |
| Leidos Holdings, Inc. | 47,311 | 1,990,847 |
| NetSuite, Inc. * | 26,188 | 2,326,804 |
| Pandora Media, Inc. * | 142,800 | 2,561,832 |
| PTC, Inc. * | 85,055 | 2,817,022 |
| Sabre Corp. | 103,416 | 2,814,983 |
| ServiceNow, Inc. * | 101,659 | 7,213,723 |
| SolarWinds, Inc. * | 49,423 | 1,964,564 |
| Solera Holdings, Inc. | 49,623 | 2,390,340 |
| Splunk, Inc. * | 93,545 | 5,796,984 |
| Synopsys, Inc. * | 115,003 | 5,397,091 |
| Syntel, Inc. * | 23,646 | 1,051,065 |
| Tableau Software, Inc., Class A * | 31,001 | 2,919,364 |
| Teradata Corp. * | 104,573 | 3,056,669 |
| The Ultimate Software Group, Inc. * | 21,481 | 3,784,737 |
| Total System Services, Inc. | 123,052 | 5,639,473 |
| Vantiv, Inc., Class A * | 107,091 | 4,716,288 |
| VeriSign, Inc. *(a) | 77,836 | 5,366,014 |
| WEX, Inc. * | 28,752 | 2,717,926 |
| Yelp, Inc. * | 40,044 | 972,268 |
| 151,928,498 | ||
| Technology Hardware & Equipment 3.6% | ||
| 3D Systems Corp. *(a) | 78,322 | 1,075,361 |
| Anixter International, Inc. * | 20,422 | 1,300,064 |
| Arrow Electronics, Inc. * | 73,587 | 4,114,985 |
| Avnet, Inc. | 104,254 | 4,420,370 |
| Brocade Communications Systems, Inc. | 322,387 | 3,433,421 |
| CDW Corp. | 107,553 | 4,275,232 |
| CommScope Holding Co., Inc. * | 93,845 | 3,035,886 |
| Dolby Laboratories, Inc., Class A | 31,460 | 1,024,338 |
| EchoStar Corp., Class A * | 32,305 | 1,440,803 |
| FEI Co. | 31,356 | 2,366,751 |
| FLIR Systems, Inc. | 102,930 | 2,946,886 |
| Harris Corp. | 91,271 | 7,011,438 |
| Ingram Micro, Inc., Class A | 117,060 | 3,167,644 |
| IPG Photonics Corp. * | 26,558 | 2,242,026 |
| Jabil Circuit, Inc. | 145,252 | 2,810,626 |
| Keysight Technologies, Inc. * | 127,651 | 4,089,938 |
| National Instruments Corp. | 75,918 | 2,217,565 |
| NCR Corp. * | 125,634 | 3,152,157 |
| Palo Alto Networks, Inc. * | 51,612 | 8,475,723 |
| Trimble Navigation Ltd. * | 192,355 | 3,635,509 |
| 66,236,723 | ||
| Telecommunication Services 1.0% | ||
| Frontier Communications Corp. | 842,620 | 4,272,083 |
| Level 3 Communications, Inc. * | 219,580 | 9,821,813 |
| Telephone & Data Systems, Inc. | 73,102 | 2,079,021 |
| United States Cellular Corp. * | 12,626 | 466,152 |
| Windstream Holdings, Inc. (a) | 63,192 | 454,351 |
| Zayo Group Holdings, Inc. * | 30,703 | 858,763 |
| 17,952,183 | ||
| Transportation 2.1% | ||
| Alaska Air Group, Inc. | 98,015 | 7,337,403 |
| AMERCO | 4,599 | 1,722,602 |
| Avis Budget Group, Inc. * | 76,641 | 3,382,167 |
42 See financial notes
Schwab U.S. Mid-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Expeditors International of Washington, Inc. | 142,004 | 6,953,936 |
| Genesee & Wyoming, Inc., Class A * | 37,951 | 2,595,089 |
| J.B. Hunt Transport Services, Inc. | 68,311 | 4,971,675 |
| Kirby Corp. * | 42,061 | 2,966,562 |
| Landstar System, Inc. | 33,312 | 2,205,254 |
| Old Dominion Freight Line, Inc. * | 50,196 | 3,337,532 |
| Ryder System, Inc. | 39,517 | 3,239,209 |
| 38,711,429 | ||
| Utilities 4.7% | ||
| AGL Resources, Inc. | 86,963 | 5,303,873 |
| Alliant Energy Corp. | 84,262 | 4,775,128 |
| American Water Works Co., Inc. | 134,341 | 6,977,672 |
| Aqua America, Inc. | 132,492 | 3,359,997 |
| Atmos Energy Corp. | 75,291 | 4,125,194 |
| Cleco Corp. | 45,814 | 2,454,714 |
| CMS Energy Corp. | 204,267 | 6,695,872 |
| Great Plains Energy, Inc. | 111,828 | 2,786,754 |
| ITC Holdings Corp. | 114,985 | 3,760,009 |
| MDU Resources Group, Inc. | 143,908 | 2,577,392 |
| National Fuel Gas Co. | 62,400 | 3,367,104 |
| NRG Energy, Inc. | 245,338 | 4,887,133 |
| OGE Energy Corp. | 147,381 | 4,132,563 |
| Pepco Holdings, Inc. | 186,598 | 4,288,022 |
| Pinnacle West Capital Corp. | 82,920 | 4,936,228 |
| Questar Corp. | 132,135 | 2,551,527 |
| SCANA Corp. | 108,633 | 5,745,599 |
| TECO Energy, Inc. | 179,361 | 3,779,136 |
| UGI Corp. | 130,449 | 4,445,702 |
| Vectren Corp. | 62,116 | 2,498,927 |
| Westar Energy, Inc. | 108,762 | 3,975,251 |
| 87,423,797 | ||
| Total Common Stock | ||
| (Cost $1,734,587,881) | 1,837,931,571 | |
| Other Investment Companies 1.4% of net assets | ||
| Money Market Fund 0.0% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b) | 161,224 | 161,224 |
| Securities Lending Collateral 1.4% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b) | 25,067,929 | 25,067,929 |
| Total Other Investment Companies | ||
| (Cost $25,229,153) | 25,229,153 | |
End of Investments
At 08/31/15, the tax basis cost of the fund's investments was $1,760,811,639 and the unrealized appreciation and depreciation were $218,264,826 and ($115,915,741), respectively, with a net unrealized appreciation of $102,349,085.
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $26,279,336. Non-cash collateral pledged to the fund for securities on loan amounted to $1,593,243. |
| (b) | The rate shown is the 7-day yield. |
In addition to the above, the fund held the following at 08/31/15:
| Number of Contracts | Contract Value ($) | Unrealized Depreciation ($) | ||||
| Futures Contracts | ||||||
| S&P 500 Index, e-mini, Long, expires 09/18/15 | 18 | 1,772,280 | (7,955) | |||
See financial notes 43
Schwab U.S. Small-Cap ETF
Portfolio Holdings as of August 31, 2015
This section shows all the securities in the fund's portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be viewed and copied at the SEC's Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund's website at www.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.8% | Common Stock | 2,640,079,527 | 2,888,774,055 |
| 0.0% | Rights | 115,419 | 115,419 |
| 0.0% | Warrants | — | — |
| 3.0% | Other Investment Companies | 85,686,833 | 85,686,833 |
| 102.8% | Total Investments | 2,725,881,779 | 2,974,576,307 |
| (2.8%) | Other Assets and Liabilities, Net | (80,835,560) | |
| 100.0% | Net Assets | 2,893,740,747 | |
| Security | Number of Shares | Value ($) |
| Common Stock 99.8% of net assets | ||
| Automobiles & Components 1.2% | ||
| American Axle & Manufacturing Holdings, Inc. * | 87,000 | 1,757,400 |
| Cooper Tire & Rubber Co. | 62,355 | 2,406,903 |
| Cooper-Standard Holding, Inc. * | 15,211 | 873,416 |
| Dana Holding Corp. | 187,249 | 3,284,347 |
| Dorman Products, Inc. * | 35,199 | 1,772,270 |
| Drew Industries, Inc. | 27,337 | 1,510,643 |
| Federal-Mogul Holdings Corp. * | 43,897 | 403,852 |
| Fox Factory Holding Corp. * | 23,393 | 351,363 |
| Gentex Corp. | 339,984 | 5,269,752 |
| Gentherm, Inc. * | 40,137 | 1,829,846 |
| Horizon Global Corp. * | 20,901 | 218,624 |
| Metaldyne Performance Group, Inc. | 11,175 | 210,984 |
| Modine Manufacturing Co. * | 56,399 | 500,823 |
| Remy International, Inc. | 36,305 | 1,063,737 |
| Standard Motor Products, Inc. | 22,982 | 813,563 |
| Superior Industries International, Inc. | 27,242 | 520,322 |
| Tenneco, Inc. * | 69,573 | 3,273,410 |
| Thor Industries, Inc. | 53,585 | 2,924,669 |
| Visteon Corp. * | 53,480 | 5,329,817 |
| Winnebago Industries, Inc. | 29,403 | 602,173 |
| 34,917,914 | ||
| Banks 8.6% | ||
| 1st Source Corp. | 18,425 | 551,645 |
| Ameris Bancorp | 28,558 | 778,777 |
| Arrow Financial Corp. | 17,320 | 476,820 |
| Associated Banc-Corp. | 175,635 | 3,224,659 |
| Astoria Financial Corp. | 105,057 | 1,698,772 |
| Security | Number of Shares | Value ($) |
| BancFirst Corp. | 7,235 | 437,500 |
| BancorpSouth, Inc. | 97,747 | 2,322,469 |
| Bank Mutual Corp. | 46,603 | 336,940 |
| Bank of Hawaii Corp. | 51,291 | 3,183,119 |
| Bank of the Ozarks, Inc. | 80,816 | 3,378,109 |
| BankUnited, Inc. | 115,304 | 4,109,435 |
| Banner Corp. | 23,876 | 1,060,333 |
| BBCN Bancorp, Inc. | 90,188 | 1,312,235 |
| Beneficial Bancorp, Inc. * | 44,116 | 548,803 |
| Berkshire Hills Bancorp, Inc. | 34,326 | 960,441 |
| BNC Bancorp | 36,253 | 748,987 |
| BofI Holding, Inc. * | 15,176 | 1,757,988 |
| Boston Private Financial Holdings, Inc. | 98,945 | 1,177,446 |
| Brookline Bancorp, Inc. | 72,110 | 760,761 |
| Bryn Mawr Bank Corp. | 20,708 | 614,613 |
| Camden National Corp. | 9,292 | 371,773 |
| Capital Bank Financial Corp., Class A * | 31,849 | 979,994 |
| Capitol Federal Financial, Inc. | 139,680 | 1,683,144 |
| Cardinal Financial Corp. | 37,422 | 834,885 |
| Cascade Bancorp * | 37,128 | 200,862 |
| Cathay General Bancorp | 87,974 | 2,606,670 |
| Centerstate Banks, Inc. | 48,909 | 675,922 |
| Central Pacific Financial Corp. | 36,288 | 752,613 |
| Chemical Financial Corp. | 36,777 | 1,174,657 |
| City Holding Co. | 19,880 | 946,686 |
| City National Corp. | 55,854 | 4,902,864 |
| Clifton Bancorp, Inc. | 24,447 | 337,124 |
| CoBiz Financial, Inc. | 39,574 | 509,713 |
| Columbia Banking System, Inc. | 58,897 | 1,785,168 |
| Commerce Bancshares, Inc. | 94,891 | 4,252,066 |
| Community Bank System, Inc. | 43,499 | 1,551,174 |
| Community Trust Bancorp, Inc. | 16,683 | 585,573 |
| Customers Bancorp, Inc. * | 26,743 | 655,471 |
| CVB Financial Corp. | 115,041 | 1,869,416 |
| Dime Community Bancshares, Inc. | 36,814 | 626,942 |
| Eagle Bancorp, Inc. * | 32,451 | 1,360,021 |
| East West Bancorp, Inc. | 164,955 | 6,665,832 |
| Enterprise Financial Services Corp. | 18,990 | 454,051 |
| Essent Group Ltd. * | 67,464 | 1,807,361 |
| EverBank Financial Corp. | 91,759 | 1,814,993 |
| F.N.B. Corp. | 194,926 | 2,448,271 |
| FCB Financial Holdings, Inc., Class A * | 7,418 | 244,646 |
| Federal Agricultural Mortgage Corp., Class C | 13,686 | 323,948 |
| Financial Institutions, Inc. | 15,861 | 392,877 |
| First Bancorp (North Carolina) | 22,207 | 377,963 |
| First BanCorp (Puerto Rico) * | 121,335 | 486,553 |
| First Busey Corp. | 60,760 | 388,864 |
| First Citizens BancShares, Inc., Class A | 9,955 | 2,361,127 |
| First Commonwealth Financial Corp. | 104,070 | 921,020 |
| First Community Bancshares, Inc. | 17,344 | 307,162 |
| First Financial Bancorp | 72,893 | 1,344,147 |
| First Financial Bankshares, Inc. (a) | 72,653 | 2,262,414 |
| First Financial Corp. | 10,261 | 337,484 |
| First Horizon National Corp. | 268,484 | 3,901,073 |
| First Interstate BancSystem, Inc., Class A | 20,909 | 557,852 |
44 See financial notes
Schwab U.S. Small-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| First Merchants Corp. | 44,650 | 1,161,793 |
| First Midwest Bancorp, Inc. | 89,154 | 1,572,677 |
| First NBC Bank Holding Co. * | 16,327 | 571,445 |
| First Niagara Financial Group, Inc. | 404,830 | 3,744,677 |
| FirstMerit Corp. | 193,590 | 3,476,876 |
| Flagstar Bancorp, Inc. * | 24,271 | 493,429 |
| Flushing Financial Corp. | 34,185 | 681,991 |
| Fulton Financial Corp. | 212,161 | 2,579,878 |
| German American Bancorp, Inc. | 14,690 | 425,716 |
| Glacier Bancorp, Inc. | 89,352 | 2,324,046 |
| Great Southern Bancorp, Inc. | 11,424 | 460,044 |
| Great Western Bancorp, Inc. | 58,788 | 1,479,694 |
| Hancock Holding Co. | 86,797 | 2,437,260 |
| Hanmi Financial Corp. | 38,264 | 927,519 |
| Heartland Financial USA, Inc. | 14,752 | 536,530 |
| Hilltop Holdings, Inc. * | 91,040 | 1,879,976 |
| Home BancShares, Inc. | 66,377 | 2,530,291 |
| HomeTrust Bancshares, Inc. * | 26,020 | 473,304 |
| IBERIABANK Corp. | 38,307 | 2,332,896 |
| Independent Bank Corp. | 28,347 | 1,283,836 |
| Independent Bank Group, Inc. | 7,419 | 314,491 |
| International Bancshares Corp. | 65,150 | 1,671,097 |
| Investors Bancorp, Inc. | 396,346 | 4,668,956 |
| Kearny Financial Corp. * | 16,061 | 182,292 |
| Lakeland Bancorp, Inc. | 38,005 | 420,335 |
| Lakeland Financial Corp. | 16,663 | 684,683 |
| LegacyTexas Financial Group, Inc. | 44,605 | 1,263,214 |
| MainSource Financial Group, Inc. | 21,283 | 440,771 |
| MB Financial, Inc. | 72,658 | 2,393,355 |
| Meridian Bancorp, Inc. * | 26,672 | 339,801 |
| Metro Bancorp, Inc. | 14,168 | 405,772 |
| MGIC Investment Corp. * | 384,377 | 4,059,021 |
| National Bank Holdings Corp., Class A | 39,209 | 790,846 |
| National Penn Bancshares, Inc. | 161,351 | 1,938,632 |
| Nationstar Mortgage Holdings, Inc. *(a) | 46,188 | 772,263 |
| NBT Bancorp, Inc. | 47,313 | 1,225,407 |
| NMI Holdings, Inc., Class A * | 39,292 | 326,909 |
| Northfield Bancorp, Inc. | 61,979 | 927,826 |
| Northwest Bancshares, Inc. | 116,713 | 1,498,595 |
| OceanFirst Financial Corp. | 19,124 | 352,264 |
| Ocwen Financial Corp. *(a) | 120,420 | 895,925 |
| OFG Bancorp (a) | 49,794 | 430,220 |
| Old National Bancorp | 122,583 | 1,691,645 |
| Opus Bank | 5,863 | 215,700 |
| Oritani Financial Corp. | 46,979 | 708,443 |
| PacWest Bancorp | 110,729 | 4,721,485 |
| Park National Corp. | 13,453 | 1,132,877 |
| Park Sterling Corp. | 33,048 | 238,276 |
| Peoples Financial Services Corp. (a) | 8,985 | 321,214 |
| Pinnacle Financial Partners, Inc. | 39,063 | 1,852,367 |
| Popular, Inc. * | 116,655 | 3,424,991 |
| PrivateBancorp, Inc. | 80,385 | 3,042,572 |
| Prosperity Bancshares, Inc. | 68,255 | 3,526,736 |
| Provident Financial Services, Inc. | 68,796 | 1,302,996 |
| Radian Group, Inc. | 238,340 | 4,285,353 |
| Renasant Corp. | 40,718 | 1,276,102 |
| Republic Bancorp, Inc., Class A | 14,753 | 368,677 |
| S&T Bancorp, Inc. | 36,176 | 1,082,386 |
| Sandy Spring Bancorp, Inc. | 29,772 | 764,247 |
| Security | Number of Shares | Value ($) |
| ServisFirst Bancshares, Inc. | 3,471 | 130,128 |
| Signature Bank * | 58,827 | 7,852,816 |
| Simmons First National Corp., Class A | 19,130 | 839,233 |
| South State Corp. | 26,573 | 1,996,961 |
| Southside Bancshares, Inc. | 27,491 | 715,866 |
| Southwest Bancorp, Inc. | 23,238 | 387,610 |
| Square 1 Financial, Inc., Class A * | 6,959 | 175,436 |
| State Bank Financial Corp. | 39,146 | 790,749 |
| Sterling Bancorp | 130,586 | 1,832,122 |
| Stock Yards Bancorp, Inc. | 17,959 | 632,875 |
| Stonegate Mortgage Corp. * | 9,120 | 65,755 |
| Sun Bancorp, Inc. * | 7,829 | 155,484 |
| SVB Financial Group * | 58,508 | 7,318,181 |
| Synovus Financial Corp. | 160,847 | 4,894,574 |
| TCF Financial Corp. | 210,020 | 3,259,510 |
| Texas Capital Bancshares, Inc. * | 52,385 | 2,821,456 |
| TFS Financial Corp. | 87,360 | 1,499,971 |
| The Bancorp, Inc. * | 42,231 | 309,976 |
| The First of Long Island Corp. | 14,498 | 370,134 |
| Tompkins Financial Corp. | 12,565 | 659,537 |
| Towne Bank | 59,207 | 1,087,041 |
| TriCo Bancshares | 22,193 | 526,862 |
| TrustCo Bank Corp. | 92,002 | 544,652 |
| Trustmark Corp. | 79,672 | 1,834,846 |
| UMB Financial Corp. | 45,681 | 2,289,989 |
| Umpqua Holdings Corp. | 249,438 | 4,168,109 |
| Union Bankshares Corp. | 51,095 | 1,205,842 |
| United Bankshares, Inc. | 71,791 | 2,686,419 |
| United Community Banks, Inc. | 66,741 | 1,306,121 |
| United Financial Bancorp, Inc. | 56,731 | 711,974 |
| Univest Corp. of Pennsylvania | 21,055 | 407,414 |
| Valley National Bancorp | 252,061 | 2,384,497 |
| Walker & Dunlop, Inc. * | 31,615 | 769,193 |
| Washington Federal, Inc. | 113,832 | 2,582,848 |
| Washington Trust Bancorp, Inc. | 18,462 | 712,818 |
| Waterstone Financial, Inc. | 37,274 | 480,089 |
| Webster Financial Corp. | 102,258 | 3,617,888 |
| WesBanco, Inc. | 40,501 | 1,247,026 |
| Westamerica Bancorp | 31,913 | 1,440,553 |
| Western Alliance Bancorp * | 106,799 | 3,259,505 |
| Wilshire Bancorp, Inc. | 78,287 | 836,105 |
| Wintrust Financial Corp. | 52,170 | 2,660,670 |
| WSFS Financial Corp. | 32,186 | 886,081 |
| 247,187,764 | ||
| Capital Goods 9.2% | ||
| A.O. Smith Corp. | 85,714 | 5,529,410 |
| AAON, Inc. | 47,779 | 988,070 |
| AAR Corp. | 36,663 | 892,011 |
| Actuant Corp., Class A | 69,343 | 1,486,714 |
| Acuity Brands, Inc. | 49,799 | 9,704,331 |
| Advanced Drainage Systems, Inc. | 27,668 | 786,048 |
| AECOM * | 169,363 | 4,657,482 |
| Aegion Corp. * | 42,846 | 788,366 |
| Aerojet Rocketdyne Holdings, Inc. * | 68,808 | 1,415,381 |
| Aerovironment, Inc. * | 24,302 | 584,463 |
| Air Lease Corp. | 109,922 | 3,536,191 |
| Aircastle Ltd. | 70,655 | 1,468,211 |
| Alamo Group, Inc. | 9,878 | 508,618 |
| Albany International Corp., Class A | 30,955 | 987,464 |
See financial notes 45
Schwab U.S. Small-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Allegion plc | 110,027 | 6,558,709 |
| Altra Industrial Motion Corp. | 26,188 | 654,962 |
| Ameresco, Inc., Class A * | 19,522 | 110,690 |
| American Railcar Industries, Inc. (a) | 11,536 | 478,283 |
| American Science & Engineering, Inc. | 9,135 | 359,097 |
| American Woodmark Corp. * | 13,173 | 873,106 |
| Apogee Enterprises, Inc. | 32,976 | 1,719,698 |
| Applied Industrial Technologies, Inc. | 46,629 | 1,974,272 |
| Armstrong World Industries, Inc. * | 52,210 | 2,903,398 |
| Astec Industries, Inc. | 23,444 | 926,272 |
| Astronics Corp. * | 21,782 | 1,125,258 |
| AZZ, Inc. | 28,566 | 1,445,440 |
| Babcock & Wilcox Enterprises, Inc. * | 61,349 | 1,131,889 |
| Barnes Group, Inc. | 57,556 | 2,223,388 |
| Beacon Roofing Supply, Inc. * | 57,136 | 2,071,180 |
| Blount International, Inc. * | 55,295 | 380,983 |
| Briggs & Stratton Corp. | 54,531 | 1,089,529 |
| Builders FirstSource, Inc. * | 70,900 | 1,050,029 |
| BWX Technologies, Inc. | 122,747 | 3,255,250 |
| CAI International, Inc. * | 20,680 | 272,149 |
| Capstone Turbine Corp. *(a) | 444,424 | 178,481 |
| Chart Industries, Inc. * | 34,765 | 888,593 |
| CIRCOR International, Inc. | 20,128 | 910,591 |
| CLARCOR, Inc. | 56,967 | 3,211,230 |
| Columbus McKinnon Corp. | 22,755 | 432,573 |
| Comfort Systems USA, Inc. | 45,784 | 1,269,132 |
| Continental Building Products, Inc. * | 35,135 | 702,349 |
| Crane Co. | 55,843 | 2,933,991 |
| Cubic Corp. | 24,088 | 1,014,587 |
| Curtiss-Wright Corp. | 54,817 | 3,602,025 |
| DigitalGlobe, Inc. * | 75,156 | 1,733,097 |
| Douglas Dynamics, Inc. | 26,490 | 588,608 |
| DXP Enterprises, Inc. * | 14,491 | 431,107 |
| Dycom Industries, Inc. * | 40,495 | 2,878,790 |
| EMCOR Group, Inc. | 71,632 | 3,301,519 |
| Encore Wire Corp. | 19,482 | 632,581 |
| EnerSys | 50,065 | 2,676,976 |
| Engility Holdings, Inc. | 21,065 | 585,607 |
| EnPro Industries, Inc. | 26,216 | 1,243,687 |
| ESCO Technologies, Inc. | 31,403 | 1,133,962 |
| Esterline Technologies Corp. * | 35,436 | 2,895,476 |
| Federal Signal Corp. | 68,523 | 969,600 |
| Franklin Electric Co., Inc. | 45,962 | 1,346,227 |
| GATX Corp. | 51,175 | 2,536,745 |
| Generac Holdings, Inc. * | 79,062 | 2,444,597 |
| General Cable Corp. | 58,965 | 857,941 |
| Gibraltar Industries, Inc. * | 33,926 | 556,047 |
| Global Brass & Copper Holdings, Inc. | 26,468 | 519,832 |
| Global Power Equipment Group, Inc. | 17,589 | 80,909 |
| Graco, Inc. | 67,466 | 4,654,479 |
| Graham Corp. | 12,302 | 227,587 |
| Granite Construction, Inc. | 40,633 | 1,401,838 |
| Great Lakes Dredge & Dock Corp. * | 62,777 | 348,412 |
| Griffon Corp. | 50,409 | 838,806 |
| H&E Equipment Services, Inc. | 37,509 | 776,811 |
| Harsco Corp. | 86,902 | 1,004,587 |
| HD Supply Holdings, Inc. * | 207,428 | 6,845,124 |
| Security | Number of Shares | Value ($) |
| HEICO Corp. | 64,391 | 3,277,502 |
| Hexcel Corp. | 110,365 | 5,326,215 |
| Hillenbrand, Inc. | 70,423 | 1,898,604 |
| Huntington Ingalls Industries, Inc. | 55,441 | 6,241,548 |
| Hyster-Yale Materials Handling, Inc. | 12,234 | 743,338 |
| Insteel Industries, Inc. | 19,578 | 338,895 |
| ITT Corp. | 108,889 | 4,073,537 |
| John Bean Technologies Corp. | 33,979 | 1,125,384 |
| Kadant, Inc. | 10,936 | 486,543 |
| Kaman Corp. | 29,394 | 1,141,369 |
| KBR, Inc. | 166,777 | 2,908,591 |
| Kennametal, Inc. | 89,812 | 2,739,266 |
| Kratos Defense & Security Solutions, Inc. * | 60,710 | 281,694 |
| L.B. Foster Co., Class A | 12,348 | 221,400 |
| Lennox International, Inc. | 47,152 | 5,565,822 |
| Lindsay Corp. (a) | 14,308 | 1,090,699 |
| Lydall, Inc. * | 20,599 | 559,469 |
| Masonite International Corp. * | 22,796 | 1,505,676 |
| MasTec, Inc. * | 74,695 | 1,236,949 |
| Meritor, Inc. * | 110,569 | 1,398,698 |
| Moog, Inc., Class A * | 44,986 | 2,838,617 |
| MRC Global, Inc. * | 116,787 | 1,517,063 |
| Mueller Industries, Inc. | 62,827 | 1,998,527 |
| Mueller Water Products, Inc., Class A | 188,133 | 1,683,790 |
| MYR Group, Inc. * | 23,053 | 661,391 |
| National Presto Industries, Inc. | 6,686 | 548,586 |
| Navistar International Corp. * | 76,795 | 1,370,023 |
| NCI Building Systems, Inc. * | 31,351 | 326,991 |
| Nortek, Inc. * | 10,277 | 840,761 |
| NOW, Inc. *(a) | 122,692 | 2,093,125 |
| Orbital ATK, Inc. | 68,167 | 5,160,924 |
| PGT, Inc. * | 51,552 | 689,250 |
| Plug Power, Inc. *(a) | 166,661 | 284,990 |
| Ply Gem Holdings, Inc. * | 21,990 | 299,064 |
| Powell Industries, Inc. | 11,498 | 337,581 |
| Power Solutions International, Inc. *(a) | 4,985 | 156,728 |
| Preformed Line Products Co. | 3,573 | 108,262 |
| Primoris Services Corp. | 43,969 | 807,711 |
| Proto Labs, Inc. * | 25,278 | 1,840,997 |
| Quanex Building Products Corp. | 42,215 | 757,759 |
| Raven Industries, Inc. | 43,302 | 784,632 |
| RBC Bearings, Inc. * | 25,445 | 1,574,028 |
| Regal Beloit Corp. | 51,124 | 3,408,437 |
| Rexnord Corp. * | 116,265 | 2,331,113 |
| Rush Enterprises, Inc., Class A * | 40,567 | 1,035,270 |
| Simpson Manufacturing Co., Inc. | 46,915 | 1,637,803 |
| Spirit AeroSystems Holdings, Inc., Class A * | 154,325 | 7,887,551 |
| Standex International Corp. | 15,238 | 1,219,345 |
| Stock Building Supply Holdings, Inc. * | 17,965 | 338,281 |
| Sun Hydraulics Corp. | 29,317 | 945,766 |
| TAL International Group, Inc. * | 39,177 | 718,114 |
| TASER International, Inc. * | 62,064 | 1,452,298 |
| Teledyne Technologies, Inc. * | 40,105 | 3,926,681 |
| Tennant Co. | 21,700 | 1,243,844 |
| Terex Corp. | 120,268 | 2,805,852 |
| Textainer Group Holdings Ltd. (a) | 28,349 | 498,092 |
| The ExOne Co. *(a) | 12,942 | 95,383 |
46 See financial notes
Schwab U.S. Small-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| The Gorman-Rupp Co. | 19,851 | 479,799 |
| The Greenbrier Cos., Inc. (a) | 30,893 | 1,288,238 |
| The KEYW Holding Corp. *(a) | 38,497 | 323,375 |
| The Manitowoc Co., Inc. | 154,941 | 2,646,392 |
| The Middleby Corp. * | 65,338 | 7,092,440 |
| The Toro Co. | 63,103 | 4,499,244 |
| Thermon Group Holdings, Inc. * | 39,487 | 903,463 |
| Titan International, Inc. | 65,519 | 601,464 |
| Titan Machinery, Inc. *(a) | 16,904 | 196,594 |
| Trex Co., Inc. * | 38,187 | 1,482,037 |
| TriMas Corp. * | 52,278 | 953,551 |
| Triumph Group, Inc. | 54,872 | 2,710,128 |
| Tutor Perini Corp. * | 46,065 | 815,350 |
| Twin Disc, Inc. | 10,842 | 151,680 |
| Universal Forest Products, Inc. | 22,362 | 1,343,062 |
| USG Corp. * | 104,034 | 3,174,077 |
| Valmont Industries, Inc. | 26,012 | 2,764,815 |
| Wabash National Corp. * | 95,816 | 1,171,830 |
| Watsco, Inc. | 31,885 | 3,904,637 |
| Watts Water Technologies, Inc., Class A | 31,769 | 1,742,530 |
| WESCO International, Inc. * | 50,974 | 2,853,015 |
| Woodward, Inc. | 66,469 | 3,030,986 |
| 265,105,382 | ||
| Commercial & Professional Services 3.0% | ||
| ABM Industries, Inc. | 63,041 | 2,017,942 |
| Acacia Research Corp. | 54,302 | 516,955 |
| ACCO Brands Corp. * | 137,976 | 1,048,618 |
| Barrett Business Services, Inc. | 8,197 | 292,223 |
| Brady Corp., Class A | 55,143 | 1,210,940 |
| CBIZ, Inc. * | 49,331 | 480,977 |
| CDI Corp. | 15,192 | 155,414 |
| CEB, Inc. | 38,299 | 2,742,974 |
| Civeo Corp. | 121,814 | 237,537 |
| Clean Harbors, Inc. * | 60,327 | 2,963,262 |
| Covanta Holding Corp. | 150,461 | 2,979,128 |
| Deluxe Corp. | 56,530 | 3,279,305 |
| Ennis, Inc. | 28,413 | 463,984 |
| Essendant, Inc. | 43,914 | 1,515,033 |
| Exponent, Inc. | 28,684 | 1,226,241 |
| Franklin Covey Co. * | 16,932 | 283,272 |
| FTI Consulting, Inc. * | 46,161 | 1,839,977 |
| G&K Services, Inc., Class A | 22,382 | 1,513,247 |
| GP Strategies Corp. * | 19,722 | 483,386 |
| Healthcare Services Group, Inc. | 80,342 | 2,686,637 |
| Heidrick & Struggles International, Inc. | 18,631 | 363,118 |
| Heritage-Crystal Clean, Inc. * | 20,477 | 244,086 |
| Herman Miller, Inc. | 67,383 | 1,826,753 |
| HNI Corp. | 50,541 | 2,362,286 |
| Huron Consulting Group, Inc. * | 26,068 | 1,887,063 |
| ICF International, Inc. * | 23,037 | 788,096 |
| InnerWorkings, Inc. * | 45,691 | 331,717 |
| Insperity, Inc. | 26,315 | 1,168,123 |
| Interface, Inc. | 75,876 | 1,839,234 |
| KAR Auction Services, Inc. | 164,610 | 6,097,154 |
| Kelly Services, Inc., Class A | 34,204 | 494,248 |
| Kforce, Inc. | 30,655 | 821,247 |
| Kimball International, Inc., Class B | 38,270 | 418,291 |
| Knoll, Inc. | 54,071 | 1,293,378 |
| Security | Number of Shares | Value ($) |
| Korn/Ferry International | 56,725 | 1,932,621 |
| Matthews International Corp., Class A | 34,746 | 1,764,402 |
| McGrath RentCorp | 26,610 | 682,547 |
| Mistras Group, Inc. * | 17,588 | 257,488 |
| Mobile Mini, Inc. | 52,268 | 1,777,635 |
| MSA Safety, Inc. | 37,211 | 1,692,356 |
| Multi-Color Corp. | 14,086 | 928,127 |
| Navigant Consulting, Inc. * | 55,324 | 873,566 |
| NL Industries, Inc. * | 11,215 | 43,178 |
| On Assignment, Inc. * | 53,622 | 1,929,320 |
| Pendrell Corp. * | 109,836 | 162,557 |
| Performant Financial Corp. * | 37,417 | 97,284 |
| Pitney Bowes, Inc. | 232,438 | 4,604,597 |
| Quad/Graphics, Inc. | 33,192 | 479,292 |
| R.R. Donnelley & Sons Co. | 240,097 | 3,769,523 |
| Resources Connection, Inc. | 41,440 | 650,194 |
| RPX Corp. * | 67,091 | 923,843 |
| SP Plus Corp. * | 19,848 | 455,909 |
| Steelcase, Inc., Class A | 99,895 | 1,761,149 |
| Team, Inc. * | 21,681 | 907,133 |
| Tetra Tech, Inc. | 72,314 | 1,878,718 |
| The Advisory Board Co. * | 49,395 | 2,402,079 |
| The Brink's Co. | 56,953 | 1,632,273 |
| TriNet Group, Inc. * | 29,771 | 501,344 |
| TrueBlue, Inc. * | 46,805 | 1,123,320 |
| UniFirst Corp. | 17,576 | 1,905,414 |
| US Ecology, Inc. | 25,682 | 1,283,073 |
| Viad Corp. | 24,324 | 665,018 |
| WageWorks, Inc. * | 36,949 | 1,655,685 |
| West Corp. | 57,102 | 1,389,863 |
| 88,001,354 | ||
| Consumer Durables & Apparel 2.6% | ||
| Arctic Cat, Inc. | 13,313 | 351,863 |
| Beazer Homes USA, Inc. * | 31,698 | 529,357 |
| Brunswick Corp. | 106,473 | 5,292,773 |
| Callaway Golf Co. | 84,789 | 750,383 |
| Cavco Industries, Inc. * | 10,514 | 752,277 |
| Columbia Sportswear Co. | 31,918 | 1,958,808 |
| Crocs, Inc. * | 83,861 | 1,235,272 |
| Deckers Outdoor Corp. * | 37,585 | 2,420,098 |
| Ethan Allen Interiors, Inc. | 32,021 | 952,625 |
| G-III Apparel Group Ltd. * | 43,774 | 3,034,851 |
| GoPro, Inc., Class A * | 34,295 | 1,597,804 |
| Helen of Troy Ltd. * | 30,381 | 2,586,638 |
| Hovnanian Enterprises, Inc., Class A *(a) | 128,866 | 240,979 |
| Iconix Brand Group, Inc. * | 55,346 | 768,756 |
| Installed Building Products, Inc. * | 19,776 | 528,415 |
| iRobot Corp. * | 34,907 | 1,022,775 |
| Kate Spade & Co. * | 146,053 | 2,769,165 |
| KB Home | 104,267 | 1,527,512 |
| La-Z-Boy, Inc. | 58,640 | 1,619,050 |
| LeapFrog Enterprises, Inc. * | 104,414 | 98,995 |
| LGI Homes, Inc. *(a) | 18,036 | 469,657 |
| Libbey, Inc. | 25,983 | 915,641 |
| M.D.C Holdings, Inc. | 44,957 | 1,280,825 |
| M/I Homes, Inc. * | 30,908 | 772,082 |
| Marine Products Corp. | 15,205 | 106,739 |
| Meritage Homes Corp. * | 45,660 | 1,924,112 |
See financial notes 47
Schwab U.S. Small-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Movado Group, Inc. | 19,084 | 540,268 |
| NACCO Industries, Inc., Class A | 4,972 | 261,726 |
| Oxford Industries, Inc. | 17,336 | 1,458,998 |
| Perry Ellis International, Inc. * | 15,209 | 376,575 |
| Skechers U.S.A., Inc., Class A * | 47,167 | 6,638,284 |
| Smith & Wesson Holding Corp. * | 57,433 | 1,038,389 |
| Standard Pacific Corp. * | 162,886 | 1,376,387 |
| Steven Madden Ltd. * | 62,365 | 2,548,234 |
| Sturm Ruger & Co., Inc. | 21,271 | 1,337,733 |
| Taylor Morrison Home Corp., Class A * | 35,717 | 712,554 |
| Tempur Sealy International, Inc. * | 69,713 | 5,090,443 |
| The Ryland Group, Inc. | 52,708 | 2,279,094 |
| TRI Pointe Group, Inc. * | 166,888 | 2,316,405 |
| Tumi Holdings, Inc. * | 67,396 | 1,329,049 |
| Tupperware Brands Corp. | 57,584 | 2,950,028 |
| Unifi, Inc. * | 14,591 | 423,577 |
| Universal Electronics, Inc. * | 18,820 | 858,004 |
| Vera Bradley, Inc. * | 28,334 | 306,574 |
| Vince Holding Corp. * | 22,816 | 209,451 |
| Vista Outdoor, Inc. * | 72,900 | 3,408,804 |
| WCI Communities, Inc. * | 21,849 | 544,477 |
| William Lyon Homes, Class A * | 20,787 | 471,033 |
| Wolverine World Wide, Inc. | 121,780 | 3,281,971 |
| 75,265,510 | ||
| Consumer Services 4.3% | ||
| 2U, Inc. * | 11,023 | 385,474 |
| American Public Education, Inc. * | 18,686 | 409,784 |
| Apollo Education Group, Inc. * | 111,806 | 1,242,165 |
| Ascent Capital Group, Inc., Class A * | 15,190 | 426,535 |
| Belmond Ltd., Class A * | 91,103 | 1,035,841 |
| Biglari Holdings, Inc. * | 1,690 | 630,809 |
| BJ's Restaurants, Inc. * | 25,945 | 1,115,376 |
| Bloomin' Brands, Inc. | 138,970 | 2,876,679 |
| Bob Evans Farms, Inc. | 27,214 | 1,229,801 |
| Bojangles', Inc. * | 8,484 | 176,637 |
| Boyd Gaming Corp. * | 95,256 | 1,533,622 |
| Bravo Brio Restaurant Group, Inc. * | 18,993 | 242,161 |
| Bridgepoint Education, Inc. * | 19,941 | 161,123 |
| Bright Horizons Family Solutions, Inc. * | 43,504 | 2,658,965 |
| Brinker International, Inc. | 68,826 | 3,656,725 |
| Buffalo Wild Wings, Inc. * | 21,718 | 4,119,470 |
| Caesars Entertainment Corp. *(a) | 45,708 | 436,511 |
| Capella Education Co. | 11,955 | 582,806 |
| Carriage Services, Inc. | 17,381 | 398,894 |
| Chegg, Inc. *(a) | 58,525 | 434,841 |
| Choice Hotels International, Inc. | 39,502 | 2,014,602 |
| Churchill Downs, Inc. | 14,409 | 1,914,524 |
| Chuy's Holdings, Inc. * | 19,087 | 584,826 |
| ClubCorp Holdings, Inc. | 61,785 | 1,390,780 |
| Cracker Barrel Old Country Store, Inc. (a) | 27,051 | 3,900,213 |
| Dave & Buster's Entertainment, Inc. * | 20,471 | 705,021 |
| Del Frisco's Restaurant Group, Inc. * | 29,571 | 438,834 |
| Denny's Corp. * | 100,540 | 1,129,064 |
| DeVry Education Group, Inc. | 65,149 | 1,704,298 |
| Security | Number of Shares | Value ($) |
| Diamond Resorts International, Inc. * | 53,405 | 1,355,953 |
| DineEquity, Inc. | 18,988 | 1,813,354 |
| Domino's Pizza, Inc. | 62,720 | 6,644,557 |
| El Pollo Loco Holdings, Inc. *(a) | 15,775 | 205,233 |
| Fiesta Restaurant Group, Inc. * | 29,900 | 1,544,036 |
| Graham Holdings Co., Class B | 5,034 | 3,330,293 |
| Grand Canyon Education, Inc. * | 53,042 | 1,960,432 |
| Houghton Mifflin Harcourt Co. * | 126,846 | 2,864,183 |
| International Speedway Corp., Class A | 29,221 | 937,702 |
| Interval Leisure Group, Inc. | 43,905 | 880,734 |
| Intrawest Resorts Holdings, Inc. * | 19,630 | 176,474 |
| Isle of Capri Casinos, Inc. * | 26,583 | 490,722 |
| Jack in the Box, Inc. | 42,389 | 3,313,972 |
| K12, Inc. * | 34,031 | 449,890 |
| Krispy Kreme Doughnuts, Inc. * | 75,985 | 1,302,383 |
| La Quinta Holdings, Inc. * | 101,100 | 1,905,735 |
| LifeLock, Inc. *(a) | 82,684 | 698,680 |
| Marriott Vacations Worldwide Corp. | 31,113 | 2,209,334 |
| Noodles & Co. *(a) | 13,120 | 156,390 |
| Panera Bread Co., Class A * | 29,080 | 5,184,964 |
| Papa John's International, Inc. | 33,584 | 2,258,524 |
| Penn National Gaming, Inc. * | 77,419 | 1,405,929 |
| Pinnacle Entertainment, Inc. * | 69,872 | 2,639,065 |
| Popeyes Louisiana Kitchen, Inc. * | 26,190 | 1,456,688 |
| Potbelly Corp. *(a) | 21,177 | 223,629 |
| Red Robin Gourmet Burgers, Inc. * | 16,310 | 1,285,065 |
| Regis Corp. * | 54,708 | 593,035 |
| Ruby Tuesday, Inc. * | 76,037 | 500,323 |
| Ruth's Hospitality Group, Inc. | 38,047 | 611,796 |
| Scientific Games Corp., Class A *(a) | 60,852 | 670,589 |
| SeaWorld Entertainment, Inc. | 76,238 | 1,357,036 |
| Service Corp. International | 232,034 | 6,879,808 |
| ServiceMaster Global Holdings, Inc. * | 117,424 | 4,130,976 |
| Shake Shack, Inc., Class A *(a) | 14,415 | 719,885 |
| Six Flags Entertainment Corp. | 102,542 | 4,611,314 |
| Sonic Corp. | 59,134 | 1,596,618 |
| Sotheby's | 70,528 | 2,483,291 |
| Speedway Motorsports, Inc. | 12,301 | 238,024 |
| Steiner Leisure Ltd. * | 14,671 | 934,103 |
| Strayer Education, Inc. * | 13,136 | 686,225 |
| Texas Roadhouse, Inc. | 69,960 | 2,517,860 |
| The Cheesecake Factory, Inc. | 52,581 | 2,853,571 |
| The Habit Restaurants, Inc., Class A *(a) | 11,661 | 290,592 |
| The Marcus Corp. | 23,302 | 452,292 |
| The Wendy's Co. | 309,837 | 2,822,615 |
| Universal Technical Institute, Inc. | 20,693 | 92,291 |
| Vail Resorts, Inc. | 41,373 | 4,464,560 |
| Weight Watchers International, Inc. *(a) | 31,797 | 195,552 |
| Zoe's Kitchen, Inc. *(a) | 20,166 | 696,534 |
| 124,629,192 |
48 See financial notes
Schwab U.S. Small-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Diversified Financials 2.8% | ||
| Arlington Asset Investment Corp., Class A (a) | 26,755 | 445,471 |
| Artisan Partners Asset Management, Inc., Class A | 39,170 | 1,600,878 |
| BGC Partners, Inc., Class A | 217,494 | 1,907,422 |
| Cash America International, Inc. | 32,875 | 907,350 |
| CBOE Holdings, Inc. | 94,437 | 5,974,085 |
| Cohen & Steers, Inc. | 20,909 | 626,852 |
| Cowen Group, Inc., Class A * | 135,687 | 717,784 |
| Credit Acceptance Corp. * | 9,906 | 2,018,942 |
| Diamond Hill Investment Group, Inc. | 2,842 | 553,394 |
| E*TRADE Financial Corp. * | 334,863 | 8,803,548 |
| Encore Capital Group, Inc. *(a) | 28,508 | 1,158,280 |
| Enova International, Inc. * | 29,959 | 389,467 |
| Evercore Partners, Inc., Class A | 45,602 | 2,388,633 |
| Ezcorp, Inc., Class A * | 55,655 | 351,740 |
| Federated Investors, Inc., Class B | 109,299 | 3,388,269 |
| Financial Engines, Inc. | 58,551 | 1,900,565 |
| First Cash Financial Services, Inc. * | 31,741 | 1,309,951 |
| FNFV Group * | 88,835 | 1,285,442 |
| GAMCO Investors, Inc., Class A | 4,949 | 289,517 |
| Green Dot Corp., Class A * | 47,535 | 840,894 |
| Greenhill & Co., Inc. | 30,840 | 1,082,792 |
| HFF, Inc., Class A | 36,322 | 1,319,578 |
| Interactive Brokers Group, Inc., Class A | 67,414 | 2,691,167 |
| INTL FCStone, Inc. * | 16,969 | 449,000 |
| Investment Technology Group, Inc. | 37,518 | 616,046 |
| Janus Capital Group, Inc. | 167,747 | 2,496,075 |
| KCG Holdings, Inc., Class A * | 73,068 | 840,282 |
| Ladenburg Thalmann Financial Services, Inc. * | 121,825 | 317,963 |
| MarketAxess Holdings, Inc. | 42,431 | 3,836,611 |
| Moelis & Co., Class A | 15,233 | 415,556 |
| Nelnet, Inc., Class A | 20,042 | 754,581 |
| NewStar Financial, Inc. * | 27,401 | 312,097 |
| NorthStar Asset Management Group, Inc. | 222,883 | 3,744,434 |
| On Deck Capital, Inc. *(a) | 11,478 | 105,942 |
| PHH Corp. * | 57,320 | 928,584 |
| PICO Holdings, Inc. * | 29,878 | 386,920 |
| Piper Jaffray Cos. * | 18,587 | 778,052 |
| PRA Group, Inc. * | 54,499 | 2,904,252 |
| Pzena Investment Management, Inc., Class A | 13,652 | 138,022 |
| RCS Capital Corp., Class A *(a) | 38,020 | 77,561 |
| Safeguard Scientifics, Inc. * | 27,337 | 478,397 |
| SLM Corp. * | 483,611 | 4,101,021 |
| Springleaf Holdings, Inc. * | 52,151 | 2,334,279 |
| Stifel Financial Corp. * | 76,088 | 3,545,701 |
| The JG Wentworth Co., Class A * | 12,011 | 64,739 |
| Virtu Financial, Inc., Class A | 18,877 | 444,365 |
| Virtus Investment Partners, Inc. | 8,279 | 952,582 |
| Waddell & Reed Financial, Inc., Class A | 96,772 | 3,780,882 |
| Walter Investment Management Corp. *(a) | 45,702 | 751,341 |
| Westwood Holdings Group, Inc. | 8,996 | 499,368 |
| Security | Number of Shares | Value ($) |
| WisdomTree Investments, Inc. | 130,641 | 2,449,519 |
| World Acceptance Corp. *(a) | 10,296 | 386,924 |
| 80,843,117 | ||
| Energy 3.5% | ||
| Alon USA Energy, Inc. | 29,855 | 553,512 |
| Approach Resources, Inc. *(a) | 44,668 | 114,350 |
| Arch Coal, Inc. * | 23,000 | 214,130 |
| Atwood Oceanics, Inc. | 69,569 | 1,329,464 |
| Basic Energy Services, Inc. * | 43,476 | 226,510 |
| Bill Barrett Corp. *(a) | 56,710 | 310,204 |
| Bonanza Creek Energy, Inc. * | 44,491 | 340,356 |
| Bristow Group, Inc. | 38,558 | 1,428,960 |
| C&J Energy Services Ltd. * | 34,800 | 192,792 |
| California Resources Corp. | 361,638 | 1,403,155 |
| CARBO Ceramics, Inc. (a) | 22,313 | 611,822 |
| Carrizo Oil & Gas, Inc. * | 55,544 | 2,023,468 |
| Clayton Williams Energy, Inc. * | 7,146 | 363,589 |
| Clean Energy Fuels Corp. *(a) | 83,670 | 445,124 |
| Cloud Peak Energy, Inc. * | 65,353 | 312,387 |
| Comstock Resources, Inc. | 46,000 | 140,300 |
| Contango Oil & Gas Co. * | 12,207 | 113,647 |
| Delek US Holdings, Inc. | 61,029 | 1,877,252 |
| Diamondback Energy, Inc. * | 71,675 | 4,894,686 |
| Dril-Quip, Inc. * | 45,717 | 3,151,730 |
| Eclipse Resources Corp. *(a) | 51,248 | 197,305 |
| Energen Corp. | 90,723 | 4,717,596 |
| Energy XXI Ltd. (a) | 108,772 | 206,667 |
| EP Energy Corp., Class A *(a) | 42,489 | 301,247 |
| Era Group, Inc. * | 22,391 | 378,408 |
| Evolution Petroleum Corp. | 31,805 | 186,695 |
| EXCO Resources, Inc. (a) | 185,019 | 154,620 |
| Exterran Holdings, Inc. | 78,983 | 1,762,901 |
| Fairmount Santrol Holdings, Inc. *(a) | 30,657 | 153,592 |
| Forum Energy Technologies, Inc. * | 73,867 | 1,161,189 |
| Frank's International N.V. (a) | 40,114 | 654,259 |
| Geospace Technologies Corp. * | 15,861 | 280,898 |
| Goodrich Petroleum Corp. *(a) | 37,935 | 34,642 |
| Green Plains, Inc. | 41,179 | 875,466 |
| Gulf Island Fabrication, Inc. | 15,280 | 192,986 |
| Gulfmark Offshore, Inc., Class A (a) | 28,750 | 259,613 |
| Gulfport Energy Corp. * | 123,992 | 4,442,633 |
| Halcon Resources Corp. *(a) | 454,345 | 522,497 |
| Helix Energy Solutions Group, Inc. * | 112,554 | 782,250 |
| Hornbeck Offshore Services, Inc. *(a) | 36,980 | 730,355 |
| Isramco, Inc. * | 1,266 | 165,846 |
| Jones Energy, Inc., Class A * | 31,767 | 188,378 |
| Key Energy Services, Inc. * | 161,857 | 115,113 |
| Kosmos Energy Ltd. * | 127,823 | 894,761 |
| Laredo Petroleum, Inc. *(a) | 143,782 | 1,465,139 |
| Magnum Hunter Resources Corp. *(a) | 272,071 | 217,657 |
| Matador Resources Co. * | 89,311 | 2,046,115 |
| Matrix Service Co. * | 28,357 | 567,140 |
| McDermott International, Inc. * | 280,391 | 1,424,386 |
| Memorial Resource Development Corp. * | 79,216 | 1,537,583 |
| Midstates Petroleum Co., Inc. *(a) | 6,386 | 32,377 |
| Natural Gas Services Group, Inc. * | 14,690 | 318,626 |
See financial notes 49
Schwab U.S. Small-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Newfield Exploration Co. * | 190,618 | 6,349,486 |
| Newpark Resources, Inc. * | 95,726 | 701,672 |
| Northern Oil & Gas, Inc. *(a) | 65,114 | 392,637 |
| Nuverra Environmental Solutions, Inc. *(a) | 24,466 | 73,398 |
| Oil States International, Inc. * | 63,266 | 1,794,856 |
| Parker Drilling Co. * | 138,579 | 467,011 |
| Parsley Energy, Inc., Class A * | 70,700 | 1,216,040 |
| Patterson-UTI Energy, Inc. | 168,004 | 2,735,105 |
| PBF Energy, Inc., Class A | 96,501 | 2,887,310 |
| PDC Energy, Inc. * | 47,361 | 2,660,741 |
| Penn Virginia Corp. *(a) | 85,835 | 105,577 |
| PetroQuest Energy, Inc. * | 66,448 | 95,685 |
| PHI, Inc. * | 16,262 | 412,404 |
| Pioneer Energy Services Corp. * | 78,585 | 260,116 |
| Resolute Energy Corp. *(a) | 86,037 | 43,019 |
| REX American Resources Corp. * | 5,581 | 299,253 |
| Rex Energy Corp. *(a) | 54,618 | 188,432 |
| Rice Energy, Inc. * | 79,025 | 1,537,036 |
| RigNet, Inc. * | 14,181 | 408,838 |
| Rowan Cos. plc, Class A | 142,172 | 2,554,831 |
| RPC, Inc. | 75,002 | 871,523 |
| RSP Permian, Inc. * | 53,485 | 1,280,431 |
| Sanchez Energy Corp. *(a) | 59,814 | 385,202 |
| SandRidge Energy, Inc. *(a) | 440,849 | 235,017 |
| SEACOR Holdings, Inc. * | 21,017 | 1,355,807 |
| SemGroup Corp., Class A | 52,125 | 2,866,875 |
| Seventy Seven Energy, Inc. * | 40,982 | 117,618 |
| Solazyme, Inc. *(a) | 92,721 | 245,711 |
| Stone Energy Corp. * | 67,274 | 381,444 |
| Swift Energy Co. *(a) | 48,941 | 29,462 |
| Synergy Resources Corp. * | 103,580 | 1,112,449 |
| Targa Resources Corp. | 55,336 | 3,655,496 |
| Teekay Corp. | 54,988 | 2,021,359 |
| Tesco Corp. | 37,308 | 316,745 |
| TETRA Technologies, Inc. * | 99,678 | 766,524 |
| Tidewater, Inc. (a) | 56,346 | 1,010,284 |
| TransAtlantic Petroleum Ltd. * | 18,018 | 54,595 |
| Triangle Petroleum Corp. *(a) | 75,450 | 304,818 |
| Ultra Petroleum Corp. *(a) | 176,419 | 1,503,090 |
| Unit Corp. * | 52,992 | 805,478 |
| US Silica Holdings, Inc. (a) | 61,832 | 1,242,823 |
| VAALCO Energy, Inc. * | 49,211 | 87,596 |
| Vantage Drilling Co. * | 240,465 | 33,280 |
| W&T Offshore, Inc. (a) | 42,737 | 152,571 |
| Western Refining, Inc. | 80,355 | 3,456,872 |
| World Fuel Services Corp. | 82,681 | 3,195,621 |
| WPX Energy, Inc. * | 246,626 | 1,802,836 |
| 101,491,352 | ||
| Food & Staples Retailing 0.9% | ||
| Casey's General Stores, Inc. | 44,579 | 4,719,133 |
| Ingles Markets, Inc., Class A | 13,197 | 655,891 |
| Natural Grocers by Vitamin Cottage, Inc. * | 10,234 | 248,481 |
| PriceSmart, Inc. | 23,561 | 2,002,921 |
| Rite Aid Corp. * | 1,044,724 | 8,618,973 |
| Smart & Final Stores, Inc. * | 29,429 | 479,693 |
| SpartanNash Co. | 40,156 | 1,136,415 |
| SUPERVALU, Inc. * | 232,497 | 1,915,775 |
| The Andersons, Inc. | 30,278 | 1,071,236 |
| Security | Number of Shares | Value ($) |
| The Chefs' Warehouse, Inc. * | 22,842 | 345,828 |
| The Fresh Market, Inc. * | 51,131 | 1,100,850 |
| United Natural Foods, Inc. * | 58,841 | 2,833,194 |
| Village Super Market, Inc., Class A | 5,034 | 139,895 |
| Weis Markets, Inc. | 13,419 | 545,482 |
| 25,813,767 | ||
| Food, Beverage & Tobacco 2.1% | ||
| Alico, Inc. | 3,516 | 147,918 |
| B&G Foods, Inc. | 65,345 | 1,985,835 |
| Boulder Brands, Inc. *(a) | 69,654 | 571,163 |
| Cal-Maine Foods, Inc. (a) | 34,119 | 1,812,401 |
| Calavo Growers, Inc. | 18,756 | 1,092,537 |
| Coca-Cola Bottling Co. Consolidated | 4,983 | 768,528 |
| Darling Ingredients, Inc. * | 187,685 | 2,409,875 |
| Dean Foods Co. | 110,398 | 1,817,151 |
| Diamond Foods, Inc. * | 29,908 | 902,324 |
| Fresh Del Monte Produce, Inc. | 39,168 | 1,550,661 |
| Freshpet, Inc. *(a) | 19,146 | 248,707 |
| J&J Snack Foods Corp. | 17,459 | 1,989,628 |
| Lancaster Colony Corp. | 21,667 | 2,054,682 |
| Landec Corp. * | 29,649 | 394,332 |
| Limoneira Co. (a) | 11,357 | 215,556 |
| National Beverage Corp. * | 14,174 | 374,477 |
| Pinnacle Foods, Inc. | 125,973 | 5,648,629 |
| Post Holdings, Inc. * | 71,112 | 4,642,191 |
| Sanderson Farms, Inc. (a) | 23,257 | 1,605,663 |
| Seaboard Corp. * | 301 | 999,392 |
| Seneca Foods Corp., Class A * | 9,165 | 270,184 |
| Snyder's-Lance, Inc. | 62,388 | 2,106,843 |
| The Boston Beer Co., Inc., Class A * | 10,226 | 2,097,046 |
| The Hain Celestial Group, Inc. * | 118,100 | 7,187,566 |
| The WhiteWave Foods Co. * | 205,631 | 9,487,814 |
| Tootsie Roll Industries, Inc. (a) | 23,894 | 742,625 |
| TreeHouse Foods, Inc. * | 48,175 | 3,823,650 |
| Universal Corp. | 24,579 | 1,209,533 |
| Vector Group Ltd. | 86,177 | 2,053,598 |
| 60,210,509 | ||
| Health Care Equipment & Services 7.0% | ||
| AAC Holdings, Inc. *(a) | 5,688 | 134,294 |
| Abaxis, Inc. | 24,201 | 1,137,931 |
| ABIOMED, Inc. * | 43,386 | 4,160,717 |
| Acadia Healthcare Co., Inc. * | 62,651 | 4,575,403 |
| Accuray, Inc. * | 85,234 | 587,262 |
| Aceto Corp. | 33,972 | 761,312 |
| Air Methods Corp. * | 40,409 | 1,513,317 |
| Alere, Inc. * | 92,187 | 4,790,958 |
| Align Technology, Inc. * | 87,779 | 4,968,291 |
| Allscripts Healthcare Solutions, Inc. * | 199,370 | 2,745,325 |
| Amedisys, Inc. * | 39,554 | 1,528,367 |
| AMN Healthcare Services, Inc. * | 52,345 | 1,758,792 |
| Amsurg Corp. * | 54,563 | 4,278,830 |
| Analogic Corp. | 13,677 | 1,102,093 |
| AngioDynamics, Inc. * | 31,715 | 468,113 |
| Antares Pharma, Inc. *(a) | 146,238 | 263,228 |
| athenahealth, Inc. * | 44,105 | 5,864,642 |
| Atrion Corp. | 1,781 | 689,247 |
50 See financial notes
Schwab U.S. Small-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| BioScrip, Inc. *(a) | 78,066 | 189,700 |
| Brookdale Senior Living, Inc. * | 208,105 | 5,706,239 |
| Cantel Medical Corp. | 39,606 | 1,965,646 |
| Capital Senior Living Corp. * | 33,009 | 687,908 |
| Cardiovascular Systems, Inc. * | 34,359 | 827,365 |
| Castlight Health, Inc., Class B *(a) | 13,423 | 71,008 |
| Centene Corp. * | 136,545 | 8,427,557 |
| Chemed Corp. | 20,025 | 2,730,409 |
| Civitas Solutions, Inc. * | 13,511 | 327,777 |
| Computer Programs & Systems, Inc. | 11,079 | 509,856 |
| CONMED Corp. | 30,677 | 1,627,722 |
| CorVel Corp. * | 9,313 | 279,669 |
| Cyberonics, Inc. * | 29,723 | 1,942,101 |
| Cynosure, Inc., Class A * | 25,211 | 797,676 |
| DexCom, Inc. * | 84,611 | 7,965,280 |
| Diplomat Pharmacy, Inc. * | 40,977 | 1,618,182 |
| Endologix, Inc. * | 80,412 | 1,043,748 |
| Entellus Medical, Inc. * | 5,715 | 127,216 |
| Exactech, Inc. * | 10,843 | 212,631 |
| ExamWorks Group, Inc. * | 38,955 | 1,395,368 |
| GenMark Diagnostics, Inc. * | 45,672 | 472,248 |
| Globus Medical, Inc., Class A * | 75,921 | 1,853,991 |
| Greatbatch, Inc. * | 29,676 | 1,686,190 |
| Haemonetics Corp. * | 58,741 | 2,121,137 |
| Halyard Health, Inc. * | 52,657 | 1,655,536 |
| Hanger, Inc. * | 38,552 | 691,237 |
| Health Net, Inc. * | 87,960 | 5,634,718 |
| HealthEquity, Inc. * | 38,363 | 1,124,803 |
| HealthSouth Corp. | 103,603 | 4,423,848 |
| HealthStream, Inc. * | 34,826 | 865,426 |
| Healthways, Inc. * | 41,225 | 503,357 |
| HeartWare International, Inc. * | 17,874 | 1,530,014 |
| Hill-Rom Holdings, Inc. | 64,514 | 3,408,920 |
| HMS Holdings Corp. * | 103,098 | 1,077,374 |
| ICU Medical, Inc. * | 15,809 | 1,794,638 |
| Inovalon Holdings, Inc., Class A * | 23,982 | 524,966 |
| Insulet Corp. * | 64,139 | 1,905,570 |
| Integra LifeSciences Holdings Corp. * | 32,376 | 1,941,912 |
| Invacare Corp. | 34,035 | 598,676 |
| IPC Healthcare, Inc. * | 18,789 | 1,491,847 |
| K2M Group Holdings, Inc. * | 29,149 | 618,833 |
| Kindred Healthcare, Inc. | 95,311 | 1,913,845 |
| Landauer, Inc. | 12,391 | 475,938 |
| LDR Holding Corp. * | 31,451 | 1,173,751 |
| LHC Group, Inc. * | 13,222 | 572,513 |
| LifePoint Health, Inc. * | 51,497 | 4,023,461 |
| Magellan Health, Inc. * | 31,066 | 1,739,696 |
| Masimo Corp. * | 52,658 | 2,139,495 |
| MedAssets, Inc. * | 68,236 | 1,441,144 |
| Medidata Solutions, Inc. * | 63,142 | 3,032,079 |
| Meridian Bioscience, Inc. | 45,553 | 871,429 |
| Merit Medical Systems, Inc. * | 52,049 | 1,184,115 |
| Molina Healthcare, Inc. * | 45,905 | 3,424,054 |
| National HealthCare Corp. | 10,847 | 654,725 |
| National Research Corp., Class A | 10,269 | 130,930 |
| Natus Medical, Inc. * | 38,275 | 1,557,027 |
| Neogen Corp. * | 45,193 | 2,333,766 |
| Nevro Corp. * | 14,390 | 647,982 |
| NuVasive, Inc. * | 55,742 | 2,938,718 |
| NxStage Medical, Inc. * | 68,299 | 1,186,354 |
| Security | Number of Shares | Value ($) |
| Omnicell, Inc. * | 39,431 | 1,339,865 |
| OraSure Technologies, Inc. * | 69,563 | 375,640 |
| Orthofix International N.V. * | 22,387 | 839,065 |
| Owens & Minor, Inc. | 73,801 | 2,508,496 |
| PharMerica Corp. * | 37,204 | 1,217,315 |
| Quality Systems, Inc. | 53,354 | 725,081 |
| Quidel Corp. * | 32,834 | 676,052 |
| SeaSpine Holdings Corp. * | 9,685 | 136,849 |
| Select Medical Holdings Corp. | 114,691 | 1,479,514 |
| STERIS Corp. | 68,103 | 4,361,997 |
| Surgical Care Affiliates, Inc. * | 30,358 | 1,109,585 |
| SurModics, Inc. * | 16,420 | 373,555 |
| Symmetry Surgical, Inc. * | 10,208 | 91,566 |
| Tandem Diabetes Care, Inc. * | 19,633 | 225,387 |
| Team Health Holdings, Inc. * | 82,969 | 4,873,599 |
| Teleflex, Inc. | 47,767 | 6,247,924 |
| The Ensign Group, Inc. | 27,390 | 1,285,960 |
| The Providence Service Corp. * | 14,690 | 658,553 |
| The Spectranetics Corp. * | 49,821 | 839,484 |
| Thoratec Corp. * | 63,454 | 3,986,180 |
| Tornier N.V. * | 39,534 | 879,236 |
| Triple-S Management Corp., Class B * | 27,231 | 572,940 |
| Universal American Corp. * | 57,665 | 412,305 |
| US Physical Therapy, Inc. | 13,232 | 608,010 |
| Vascular Solutions, Inc. * | 18,502 | 639,429 |
| VCA, Inc. * | 93,836 | 5,196,638 |
| Veeva Systems, Inc., Class A * | 41,169 | 1,066,277 |
| WellCare Health Plans, Inc. * | 50,172 | 4,549,095 |
| West Pharmaceutical Services, Inc. | 81,161 | 4,532,842 |
| Wright Medical Group, Inc. * | 60,648 | 1,399,149 |
| Zeltiq Aesthetics, Inc. * | 32,647 | 1,053,519 |
| 201,408,550 | ||
| Household & Personal Products 0.5% | ||
| Central Garden & Pet Co., Class A * | 48,924 | 618,889 |
| Elizabeth Arden, Inc. *(a) | 32,993 | 363,913 |
| HRG Group, Inc. * | 124,524 | 1,603,869 |
| Inter Parfums, Inc. | 17,028 | 437,620 |
| Medifast, Inc. * | 12,309 | 341,821 |
| Natural Health Trends Corp. (a) | 7,828 | 209,321 |
| Nu Skin Enterprises, Inc., Class A | 68,803 | 3,142,921 |
| Revlon, Inc., Class A * | 14,251 | 475,128 |
| Spectrum Brands Holdings, Inc. | 32,464 | 3,190,562 |
| Synutra International, Inc. *(a) | 26,462 | 132,310 |
| USANA Health Sciences, Inc. * | 6,774 | 992,323 |
| WD-40 Co. | 15,407 | 1,290,182 |
| 12,798,859 | ||
| Insurance 3.4% | ||
| Allied World Assurance Co. Holdings AG | 109,775 | 4,384,413 |
| Ambac Financial Group, Inc. * | 57,884 | 940,615 |
| American Equity Investment Life Holding Co. | 93,330 | 2,264,186 |
| American National Insurance Co. | 9,842 | 977,212 |
| AMERISAFE, Inc. | 22,953 | 1,072,823 |
| AmTrust Financial Services, Inc. | 36,367 | 2,114,741 |
| Argo Group International Holdings Ltd. | 32,148 | 1,799,645 |
See financial notes 51
Schwab U.S. Small-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Aspen Insurance Holdings Ltd. | 70,770 | 3,249,051 |
| Assurant, Inc. | 78,228 | 5,816,252 |
| Assured Guaranty Ltd. | 170,232 | 4,300,060 |
| Baldwin & Lyons, Inc., Class B | 10,843 | 248,522 |
| Citizens, Inc. *(a) | 48,139 | 302,794 |
| CNO Financial Group, Inc. | 227,463 | 4,069,313 |
| Crawford & Co., Class B | 28,312 | 180,631 |
| Donegal Group, Inc., Class A | 8,661 | 123,766 |
| eHealth, Inc. * | 26,768 | 399,914 |
| EMC Insurance Group, Inc. | 7,165 | 163,935 |
| Employers Holdings, Inc. | 38,564 | 850,336 |
| Endurance Specialty Holdings Ltd. | 71,800 | 4,577,250 |
| Enstar Group Ltd. * | 12,537 | 1,831,781 |
| FBL Financial Group, Inc., Class A | 13,197 | 752,757 |
| Fidelity & Guaranty Life | 12,278 | 302,775 |
| First American Financial Corp. | 123,486 | 4,798,666 |
| Global Indemnity plc * | 8,094 | 217,243 |
| Greenlight Capital Re Ltd., Class A * | 32,940 | 839,970 |
| Horace Mann Educators Corp. | 48,067 | 1,596,786 |
| Infinity Property & Casualty Corp. | 13,103 | 1,012,600 |
| James River Group Holdings Ltd. | 12,085 | 333,546 |
| Kansas City Life Insurance Co. | 3,643 | 168,525 |
| Kemper Corp. | 56,878 | 2,014,619 |
| Maiden Holdings Ltd. | 63,927 | 916,074 |
| MBIA, Inc. * | 176,578 | 1,239,577 |
| Mercury General Corp. | 41,523 | 2,111,860 |
| National General Holdings Corp. | 79,460 | 1,456,502 |
| National Interstate Corp. | 7,636 | 211,517 |
| National Western Life Insurance Co., Class A | 2,242 | 509,876 |
| Old Republic International Corp. | 278,288 | 4,371,904 |
| OneBeacon Insurance Group Ltd., Class A | 25,145 | 363,345 |
| Primerica, Inc. | 56,964 | 2,420,400 |
| ProAssurance Corp. | 61,622 | 2,972,029 |
| RLI Corp. | 42,745 | 2,227,442 |
| Safety Insurance Group, Inc. | 14,116 | 742,219 |
| Selective Insurance Group, Inc. | 67,022 | 2,032,107 |
| StanCorp Financial Group, Inc. | 47,718 | 5,426,014 |
| State Auto Financial Corp. | 16,834 | 368,665 |
| State National Cos., Inc. | 34,278 | 325,641 |
| Stewart Information Services Corp. | 26,308 | 1,019,172 |
| Symetra Financial Corp. | 107,606 | 3,386,361 |
| The Hanover Insurance Group, Inc. | 50,315 | 3,969,853 |
| The Navigators Group, Inc. * | 11,433 | 869,480 |
| Third Point Reinsurance Ltd. * | 62,104 | 868,835 |
| United Fire Group, Inc. | 27,437 | 910,908 |
| Validus Holdings Ltd. | 95,299 | 4,219,840 |
| White Mountains Insurance Group Ltd. | 6,889 | 4,955,327 |
| 99,599,675 | ||
| Materials 4.7% | ||
| A. Schulman, Inc. | 32,651 | 1,120,909 |
| AK Steel Holding Corp. *(a) | 216,313 | 668,407 |
| Allegheny Technologies, Inc. | 124,887 | 2,411,568 |
| American Vanguard Corp. | 31,854 | 425,569 |
| AptarGroup, Inc. | 71,616 | 4,824,054 |
| Axiall Corp. | 80,383 | 2,030,475 |
| Balchem Corp. | 35,757 | 2,092,857 |
| Security | Number of Shares | Value ($) |
| Bemis Co., Inc. | 111,483 | 4,729,109 |
| Berry Plastics Group, Inc. * | 135,625 | 4,014,500 |
| Boise Cascade Co. * | 45,733 | 1,484,036 |
| Cabot Corp. | 71,883 | 2,434,677 |
| Calgon Carbon Corp. | 62,109 | 1,009,892 |
| Carpenter Technology Corp. | 56,049 | 2,185,911 |
| Century Aluminum Co. * | 58,961 | 330,182 |
| Chemtura Corp. * | 75,315 | 2,048,568 |
| Clearwater Paper Corp. * | 22,128 | 1,240,496 |
| Cliffs Natural Resources, Inc. (a) | 172,610 | 685,262 |
| Coeur Mining, Inc. * | 148,325 | 498,372 |
| Commercial Metals Co. | 127,008 | 1,994,026 |
| Compass Minerals International, Inc. | 38,369 | 3,107,889 |
| Cytec Industries, Inc. | 82,186 | 6,098,201 |
| Deltic Timber Corp. | 12,058 | 748,922 |
| Domtar Corp. | 73,903 | 2,971,640 |
| Eagle Materials, Inc. | 56,559 | 4,628,223 |
| Ferro Corp. * | 96,854 | 1,191,304 |
| Flotek Industries, Inc. *(a) | 55,626 | 1,088,045 |
| FutureFuel Corp. | 28,368 | 285,949 |
| Globe Specialty Metals, Inc. | 73,583 | 1,011,030 |
| Gold Resource Corp. (a) | 66,102 | 157,323 |
| Graphic Packaging Holding Co. | 376,923 | 5,314,614 |
| Greif, Inc., Class A | 37,623 | 1,101,601 |
| H.B. Fuller Co. | 56,783 | 2,057,816 |
| Hawkins, Inc. | 12,348 | 469,841 |
| Haynes International, Inc. | 13,475 | 515,015 |
| Headwaters, Inc. * | 80,748 | 1,629,495 |
| Hecla Mining Co. | 429,607 | 884,990 |
| Horsehead Holding Corp. *(a) | 71,087 | 581,492 |
| Innophos Holdings, Inc. | 24,914 | 1,197,616 |
| Innospec, Inc. | 28,747 | 1,411,478 |
| Intrepid Potash, Inc. * | 68,459 | 541,511 |
| Kaiser Aluminum Corp. | 19,538 | 1,632,986 |
| KapStone Paper & Packaging Corp. | 96,679 | 2,106,635 |
| Koppers Holdings, Inc. | 25,445 | 529,256 |
| Kraton Performance Polymers, Inc. * | 33,412 | 705,327 |
| Kronos Worldwide, Inc. | 25,346 | 187,814 |
| Louisiana-Pacific Corp. * | 158,061 | 2,598,523 |
| LSB Industries, Inc. * | 20,728 | 495,606 |
| Materion Corp. | 24,995 | 773,845 |
| McEwen Mining, Inc. (a) | 284,550 | 259,652 |
| Mercer International, Inc. * | 44,681 | 511,597 |
| Minerals Technologies, Inc. | 39,098 | 2,103,081 |
| Myers Industries, Inc. | 25,574 | 364,685 |
| Neenah Paper, Inc. | 19,880 | 1,147,474 |
| NewMarket Corp. | 11,988 | 4,594,281 |
| Olin Corp. | 89,264 | 1,781,709 |
| OM Group, Inc. | 36,129 | 1,210,322 |
| OMNOVA Solutions, Inc. * | 44,611 | 280,603 |
| P.H. Glatfelter Co. | 48,726 | 879,992 |
| Platform Specialty Products Corp. * | 151,980 | 2,908,897 |
| PolyOne Corp. | 100,366 | 3,258,884 |
| Quaker Chemical Corp. | 15,861 | 1,258,729 |
| Rayonier Advanced Materials, Inc. | 47,709 | 325,375 |
| Rentech, Inc. * | 30,534 | 214,654 |
| Resolute Forest Products, Inc. * | 111,343 | 1,123,451 |
| Schnitzer Steel Industries, Inc., Class A | 29,777 | 515,440 |
52 See financial notes
Schwab U.S. Small-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Schweitzer-Mauduit International, Inc. | 36,387 | 1,285,553 |
| Sensient Technologies Corp. | 54,419 | 3,545,398 |
| Silgan Holdings, Inc. | 47,774 | 2,501,447 |
| Sonoco Products Co. | 121,963 | 4,795,585 |
| Steel Dynamics, Inc. | 285,798 | 5,567,345 |
| Stepan Co. | 20,845 | 938,650 |
| Stillwater Mining Co. * | 147,188 | 1,405,645 |
| Summit Materials, Inc., Class A * | 48,921 | 1,147,687 |
| SunCoke Energy, Inc. | 76,171 | 874,443 |
| The Scotts Miracle-Gro Co., Class A | 51,238 | 3,186,491 |
| TimkenSteel Corp. | 42,706 | 763,156 |
| Tredegar Corp. | 30,808 | 446,408 |
| Trinseo S.A. *(a) | 10,636 | 309,933 |
| Tronox Ltd., Class A | 69,451 | 559,081 |
| United States Lime & Minerals, Inc. | 1,774 | 87,352 |
| United States Steel Corp. | 166,732 | 2,731,070 |
| Valhi, Inc. (a) | 18,812 | 53,050 |
| Wausau Paper Corp. | 59,531 | 463,747 |
| Worthington Industries, Inc. | 52,707 | 1,348,772 |
| 137,002,496 | ||
| Media 1.9% | ||
| AMC Entertainment Holdings, Inc., Class A | 22,216 | 643,820 |
| Cable One, Inc. * | 5,034 | 2,090,822 |
| Carmike Cinemas, Inc. * | 28,691 | 684,280 |
| Central European Media Enterprises Ltd., Class A *(a) | 93,176 | 204,987 |
| Cinemark Holdings, Inc. | 127,921 | 4,547,591 |
| Clear Channel Outdoor Holdings, Inc., Class A * | 47,651 | 388,832 |
| Crown Media Holdings, Inc., Class A * | 27,418 | 146,686 |
| Cumulus Media, Inc., Class A * | 138,650 | 198,269 |
| DreamWorks Animation SKG, Inc., Class A * | 85,563 | 1,706,126 |
| Entercom Communications Corp., Class A * | 19,829 | 218,516 |
| Global Eagle Entertainment, Inc. *(a) | 56,518 | 665,217 |
| Gray Television, Inc. * | 63,575 | 736,834 |
| Harte-Hanks, Inc. | 48,943 | 188,431 |
| Hemisphere Media Group, Inc. *(a) | 15,175 | 206,532 |
| John Wiley & Sons, Inc., Class A | 53,450 | 2,755,882 |
| Liberty Broadband Corp., Class A * | 28,239 | 1,538,178 |
| Liberty Broadband Corp., Class C * | 74,203 | 3,972,087 |
| Lions Gate Entertainment Corp. | 108,685 | 3,987,653 |
| Live Nation Entertainment, Inc. * | 165,587 | 4,076,752 |
| Loral Space & Communications, Inc. * | 14,343 | 777,534 |
| Media General, Inc. * | 107,402 | 1,261,973 |
| Meredith Corp. | 41,145 | 1,942,867 |
| Morningstar, Inc. | 23,068 | 1,840,365 |
| National CineMedia, Inc. | 73,937 | 972,271 |
| New Media Investment Group, Inc. | 46,489 | 693,616 |
| Nexstar Broadcasting Group, Inc., Class A | 35,064 | 1,629,775 |
| Regal Entertainment Group, Class A | 95,286 | 1,812,340 |
| Security | Number of Shares | Value ($) |
| Rentrak Corp. *(a) | 13,520 | 617,053 |
| Scholastic Corp. | 29,523 | 1,275,689 |
| SFX Entertainment, Inc. *(a) | 48,935 | 49,914 |
| Sinclair Broadcast Group, Inc., Class A | 82,545 | 2,210,555 |
| Sizmek, Inc. * | 26,462 | 173,855 |
| Starz, Class A * | 96,974 | 3,647,192 |
| The E.W. Scripps Co., Class A | 60,270 | 1,055,930 |
| The McClatchy Co., Class A * | 82,937 | 104,501 |
| The New York Times Co., Class A | 155,136 | 1,886,454 |
| Time, Inc. | 124,867 | 2,593,488 |
| World Wrestling Entertainment, Inc., Class A (a) | 33,139 | 664,768 |
| 54,167,635 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 6.9% | ||
| ACADIA Pharmaceuticals, Inc. * | 90,806 | 3,326,224 |
| Accelerate Diagnostics, Inc. *(a) | 31,793 | 623,779 |
| Acceleron Pharma, Inc. * | 10,312 | 298,842 |
| Achillion Pharmaceuticals, Inc. * | 123,716 | 914,261 |
| Acorda Therapeutics, Inc. * | 46,514 | 1,487,053 |
| Aduro Biotech, Inc. *(a) | 8,110 | 157,010 |
| Aegerion Pharmaceuticals, Inc. *(a) | 34,997 | 619,097 |
| Affymetrix, Inc. * | 85,765 | 800,187 |
| Agios Pharmaceuticals, Inc. * | 13,040 | 1,126,656 |
| Akebia Therapeutics, Inc. * | 24,448 | 170,158 |
| Akorn, Inc. * | 88,924 | 3,538,286 |
| Alkermes plc * | 172,133 | 10,252,241 |
| Alnylam Pharmaceuticals, Inc. * | 84,359 | 8,681,385 |
| AMAG Pharmaceuticals, Inc. * | 35,534 | 2,222,296 |
| Anacor Pharmaceuticals, Inc. * | 50,183 | 6,544,365 |
| Arena Pharmaceuticals, Inc. * | 286,573 | 776,613 |
| ARIAD Pharmaceuticals, Inc. * | 209,256 | 1,975,377 |
| Array BioPharma, Inc. * | 149,603 | 882,658 |
| Atara Biotherapeutics, Inc. * | 18,402 | 745,833 |
| aTyr Pharma, Inc. * | 8,154 | 118,070 |
| Bellicum Pharmaceuticals, Inc. *(a) | 8,017 | 136,770 |
| Bio-Rad Laboratories, Inc., Class A * | 24,195 | 3,371,089 |
| Bio-Techne Corp. | 42,721 | 4,036,280 |
| BioCryst Pharmaceuticals, Inc. * | 71,680 | 834,355 |
| Bluebird Bio, Inc. * | 40,473 | 5,385,742 |
| Blueprint Medicines Corp. * | 9,775 | 267,444 |
| Bruker Corp. * | 130,314 | 2,395,171 |
| Cambrex Corp. * | 34,736 | 1,660,728 |
| Catalent, Inc. * | 111,713 | 3,551,356 |
| Celldex Therapeutics, Inc. * | 112,475 | 1,669,129 |
| Cepheid, Inc. * | 84,562 | 4,121,552 |
| Charles River Laboratories International, Inc. * | 53,483 | 3,684,444 |
| Chimerix, Inc. * | 45,199 | 2,212,039 |
| Clovis Oncology, Inc. * | 36,785 | 2,864,080 |
| Coherus Biosciences, Inc. * | 13,566 | 374,422 |
| Depomed, Inc. * | 68,861 | 1,854,427 |
| Dyax Corp. * | 165,418 | 3,807,922 |
| Emergent Biosolutions, Inc. * | 36,796 | 1,224,939 |
| Enanta Pharmaceuticals, Inc. * | 15,346 | 599,108 |
| Endocyte, Inc. *(a) | 38,997 | 205,514 |
| Epizyme, Inc. *(a) | 24,241 | 484,820 |
| Exact Sciences Corp. *(a) | 109,328 | 2,417,242 |
| Exelixis, Inc. *(a) | 244,244 | 1,453,252 |
See financial notes 53
Schwab U.S. Small-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| FibroGen, Inc. * | 13,066 | 320,117 |
| Fluidigm Corp. * | 31,921 | 389,117 |
| Foundation Medicine, Inc. *(a) | 15,887 | 373,980 |
| Genomic Health, Inc. * | 18,409 | 506,616 |
| Halozyme Therapeutics, Inc. * | 123,773 | 2,161,077 |
| ImmunoGen, Inc. * | 96,932 | 1,304,705 |
| Impax Laboratories, Inc. * | 77,537 | 3,175,916 |
| INC Research Holdings, Inc., Class A * | 32,559 | 1,335,245 |
| Infinity Pharmaceuticals, Inc. * | 52,293 | 461,224 |
| Insys Therapeutics, Inc. *(a) | 28,280 | 916,838 |
| Intercept Pharmaceuticals, Inc. * | 15,501 | 2,941,470 |
| Intra-Cellular Therapies, Inc. * | 31,099 | 833,142 |
| Intrexon Corp. * | 42,575 | 1,894,587 |
| Invitae Corp. * | 6,858 | 70,020 |
| Ironwood Pharmaceuticals, Inc. * | 135,440 | 1,489,840 |
| Isis Pharmaceuticals, Inc. * | 137,169 | 6,883,140 |
| Juno Therapeutics, Inc. *(a) | 26,556 | 964,248 |
| Karyopharm Therapeutics, Inc. * | 21,165 | 293,347 |
| Keryx Biopharmaceuticals, Inc. *(a) | 118,955 | 735,142 |
| Kindred Biosciences, Inc. * | 16,295 | 96,466 |
| Kite Pharma, Inc. *(a) | 14,512 | 771,603 |
| KYTHERA Biopharmaceuticals, Inc. * | 22,029 | 1,646,007 |
| Lannett Co., Inc. * | 29,502 | 1,414,621 |
| Lexicon Pharmaceuticals, Inc. *(a) | 41,395 | 494,256 |
| Ligand Pharmaceuticals, Inc. * | 21,281 | 1,956,575 |
| Lion Biotechnologies, Inc. * | 51,588 | 366,791 |
| Luminex Corp. * | 46,601 | 849,070 |
| MacroGenics, Inc. * | 30,682 | 808,471 |
| MannKind Corp. *(a) | 293,622 | 1,112,827 |
| Merrimack Pharmaceuticals, Inc. * | 112,013 | 1,130,211 |
| MiMedx Group, Inc. *(a) | 104,368 | 1,013,413 |
| Momenta Pharmaceuticals, Inc. * | 65,302 | 1,274,042 |
| Myriad Genetics, Inc. *(a) | 81,319 | 3,054,342 |
| Nektar Therapeutics * | 146,217 | 1,615,698 |
| Neurocrine Biosciences, Inc. * | 88,988 | 4,127,263 |
| NewLink Genetics Corp. *(a) | 24,194 | 1,086,553 |
| Novavax, Inc. * | 308,208 | 3,319,400 |
| OncoMed Pharmaceuticals, Inc. *(a) | 14,229 | 278,746 |
| Ophthotech Corp. * | 12,558 | 552,929 |
| OPKO Health, Inc. *(a) | 358,255 | 3,876,319 |
| Orexigen Therapeutics, Inc. *(a) | 140,849 | 390,152 |
| Organovo Holdings, Inc. *(a) | 85,105 | 232,337 |
| Osiris Therapeutics, Inc. *(a) | 13,256 | 238,608 |
| Pacira Pharmaceuticals, Inc. * | 41,170 | 2,369,333 |
| PAREXEL International Corp. * | 62,840 | 4,129,845 |
| PDL BioPharma, Inc. | 180,673 | 1,020,802 |
| Phibro Animal Health Corp., Class A | 15,335 | 541,326 |
| Portola Pharmaceuticals, Inc. * | 61,855 | 2,917,082 |
| PRA Health Sciences, Inc. * | 18,871 | 710,116 |
| Prestige Brands Holdings, Inc. * | 59,666 | 2,775,662 |
| PTC Therapeutics, Inc. * | 25,467 | 972,585 |
| Raptor Pharmaceutical Corp. * | 87,811 | 1,065,147 |
| Relypsa, Inc. * | 29,842 | 685,172 |
| Retrophin, Inc. * | 35,039 | 960,769 |
| Revance Therapeutics, Inc. * | 14,511 | 439,103 |
| Sagent Pharmaceuticals, Inc. * | 26,469 | 528,851 |
| Sangamo BioSciences, Inc. * | 77,241 | 583,942 |
| Sarepta Therapeutics, Inc. *(a) | 44,819 | 1,600,038 |
| SciClone Pharmaceuticals, Inc. * | 56,683 | 445,528 |
| Security | Number of Shares | Value ($) |
| Sequenom, Inc. *(a) | 145,265 | 312,320 |
| Spark Therapeutics, Inc. *(a) | 7,891 | 344,127 |
| Spectrum Pharmaceuticals, Inc. * | 60,962 | 443,194 |
| Sunesis Pharmaceuticals, Inc. *(a) | 47,916 | 57,020 |
| Synergy Pharmaceuticals, Inc. *(a) | 114,777 | 803,439 |
| Synta Pharmaceuticals Corp. * | 146,869 | 293,738 |
| TESARO, Inc. * | 29,320 | 1,509,394 |
| The Medicines Co. * | 73,968 | 3,032,688 |
| TherapeuticsMD, Inc. * | 142,021 | 870,589 |
| Theravance Biopharma, Inc. *(a) | 27,449 | 399,657 |
| Theravance, Inc. (a) | 88,832 | 1,235,653 |
| Ultragenyx Pharmaceutical, Inc. * | 39,812 | 4,443,815 |
| United Therapeutics Corp. * | 52,970 | 7,978,341 |
| Versartis, Inc. *(a) | 20,220 | 262,253 |
| Vitae Pharmaceuticals, Inc. * | 7,955 | 61,731 |
| VIVUS, Inc. *(a) | 64,837 | 73,266 |
| VWR Corp. * | 52,965 | 1,390,331 |
| XBiotech, Inc. *(a) | 7,132 | 136,792 |
| XOMA Corp. *(a) | 97,639 | 81,128 |
| ZIOPHARM Oncology, Inc. *(a) | 151,344 | 1,318,206 |
| 199,421,670 | ||
| Real Estate 10.4% | ||
| Acadia Realty Trust | 78,204 | 2,310,928 |
| AG Mortgage Investment Trust, Inc. | 36,172 | 597,923 |
| Agree Realty Corp. | 15,297 | 435,200 |
| Alexander & Baldwin, Inc. | 52,057 | 1,761,088 |
| Alexander's, Inc. | 3,637 | 1,320,231 |
| Altisource Portfolio Solutions S.A. *(a) | 17,839 | 480,047 |
| Altisource Residential Corp. | 68,346 | 1,043,643 |
| American Assets Trust, Inc. | 44,668 | 1,720,611 |
| American Capital Mortgage Investment Corp. | 55,824 | 852,432 |
| American Homes 4 Rent, Class A | 167,173 | 2,671,425 |
| American Residential Properties, Inc. | 36,145 | 612,658 |
| Anworth Mortgage Asset Corp. | 114,982 | 578,359 |
| Apollo Commercial Real Estate Finance, Inc. | 80,985 | 1,325,724 |
| Apollo Residential Mortgage, Inc. | 37,181 | 519,047 |
| ARMOUR Residential REIT, Inc. | 53,685 | 1,147,248 |
| Ashford Hospitality Prime, Inc. | 31,030 | 429,145 |
| Ashford Hospitality Trust, Inc. | 106,696 | 825,827 |
| BioMed Realty Trust, Inc. | 228,626 | 4,229,581 |
| Blackstone Mortgage Trust, Inc., Class A | 105,582 | 2,923,566 |
| Brandywine Realty Trust | 212,307 | 2,573,161 |
| Campus Crest Communities, Inc. | 79,431 | 410,658 |
| Capstead Mortgage Corp. | 106,149 | 1,106,073 |
| CareTrust REIT, Inc. | 59,046 | 661,906 |
| CBL & Associates Properties, Inc. | 196,240 | 2,920,051 |
| Cedar Realty Trust, Inc. | 67,151 | 420,365 |
| Chambers Street Properties | 280,545 | 1,899,290 |
| Chesapeake Lodging Trust | 68,452 | 1,978,947 |
| Chimera Investment Corp. | 235,205 | 3,295,222 |
| Colony Capital, Inc., Class A | 128,931 | 2,799,092 |
| Columbia Property Trust, Inc. | 142,870 | 3,054,561 |
| Communications Sales & Leasing, Inc. * | 140,239 | 2,818,804 |
| CoreSite Realty Corp. | 29,966 | 1,459,045 |
54 See financial notes
Schwab U.S. Small-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Corporate Office Properties Trust | 105,239 | 2,213,176 |
| Cousins Properties, Inc. | 242,163 | 2,220,635 |
| CubeSmart | 189,244 | 4,785,981 |
| CyrusOne, Inc. | 73,696 | 2,333,215 |
| CYS Investments, Inc. | 188,278 | 1,470,451 |
| DCT Industrial Trust, Inc. | 100,559 | 3,228,949 |
| DiamondRock Hospitality Co. | 224,490 | 2,640,002 |
| Douglas Emmett, Inc. | 157,149 | 4,342,027 |
| DuPont Fabros Technology, Inc. | 77,121 | 2,061,444 |
| Dynex Capital, Inc. | 46,661 | 312,629 |
| EastGroup Properties, Inc. | 35,237 | 1,902,798 |
| Education Realty Trust, Inc. | 54,484 | 1,593,657 |
| Empire State Realty Trust, Inc., Class A | 126,197 | 2,045,653 |
| EPR Properties | 65,970 | 3,357,213 |
| Equity Commonwealth * | 149,487 | 3,840,321 |
| Equity LifeStyle Properties, Inc. | 93,822 | 5,231,515 |
| Equity One, Inc. | 85,543 | 2,011,116 |
| FelCor Lodging Trust, Inc. | 150,175 | 1,211,912 |
| First Industrial Realty Trust, Inc. | 125,900 | 2,441,201 |
| First Potomac Realty Trust | 70,484 | 740,787 |
| Forest City Enterprises, Inc., Class A * | 221,180 | 4,762,005 |
| Forestar Group, Inc. * | 43,555 | 563,166 |
| Franklin Street Properties Corp. | 108,771 | 1,132,306 |
| FRP Holdings, Inc. * | 6,883 | 214,130 |
| Gaming & Leisure Properties, Inc. | 106,738 | 3,302,474 |
| Getty Realty Corp. | 31,997 | 504,273 |
| Government Properties Income Trust | 81,785 | 1,295,474 |
| Hatteras Financial Corp. | 109,724 | 1,780,821 |
| Healthcare Realty Trust, Inc. | 114,955 | 2,632,469 |
| Healthcare Trust of America, Inc., Class A | 142,998 | 3,433,382 |
| Hersha Hospitality Trust | 58,499 | 1,429,716 |
| Highwoods Properties, Inc. | 106,301 | 4,033,060 |
| Home Properties, Inc. | 65,412 | 4,854,225 |
| Hospitality Properties Trust | 174,746 | 4,494,467 |
| Hudson Pacific Properties, Inc. | 83,605 | 2,373,546 |
| InfraREIT, Inc. * | 22,122 | 623,398 |
| Inland Real Estate Corp. | 94,071 | 791,137 |
| Invesco Mortgage Capital, Inc. | 139,545 | 1,897,812 |
| Investors Real Estate Trust | 131,254 | 878,089 |
| iStar, Inc. * | 93,176 | 1,161,905 |
| Kennedy-Wilson Holdings, Inc. | 93,274 | 2,234,845 |
| Kite Realty Group Trust | 97,800 | 2,299,278 |
| Ladder Capital Corp., Class A | 19,493 | 303,701 |
| LaSalle Hotel Properties | 129,516 | 4,074,573 |
| Lexington Realty Trust | 247,553 | 1,997,753 |
| LTC Properties, Inc. | 40,656 | 1,658,358 |
| Mack-Cali Realty Corp. | 96,248 | 1,802,725 |
| Marcus & Millichap, Inc. * | 14,942 | 634,437 |
| Medical Properties Trust, Inc. | 268,959 | 3,138,752 |
| MFA Financial, Inc. | 417,509 | 2,968,489 |
| Mid-America Apartment Communities, Inc. | 85,554 | 6,723,689 |
| Monmouth Real Estate Investment Corp. | 62,784 | 597,704 |
| Monogram Residential Trust, Inc. | 178,902 | 1,656,633 |
| National Health Investors, Inc. | 39,039 | 2,151,049 |
| National Storage Affiliates Trust | 34,874 | 451,270 |
| New Residential Investment Corp. | 260,431 | 3,687,703 |
| Security | Number of Shares | Value ($) |
| New Senior Investment Group, Inc. | 102,666 | 1,169,366 |
| New York Mortgage Trust, Inc. (a) | 127,188 | 831,810 |
| New York REIT, Inc. | 181,891 | 1,742,516 |
| Newcastle Investment Corp. | 77,667 | 380,568 |
| NorthStar Realty Finance Corp. | 314,887 | 4,424,162 |
| Omega Healthcare Investors, Inc. | 182,746 | 6,173,160 |
| One Liberty Properties, Inc. | 14,690 | 320,683 |
| Outfront Media, Inc. | 157,826 | 3,571,602 |
| Paramount Group, Inc. | 162,573 | 2,672,700 |
| Parkway Properties, Inc. | 90,880 | 1,439,539 |
| Pebblebrook Hotel Trust | 81,516 | 3,102,499 |
| Pennsylvania Real Estate Investment Trust | 78,126 | 1,550,020 |
| PennyMac Mortgage Investment Trust | 80,095 | 1,207,032 |
| Piedmont Office Realty Trust, Inc., Class A | 181,238 | 3,073,796 |
| Post Properties, Inc. | 61,881 | 3,425,732 |
| Potlatch Corp. | 45,482 | 1,501,816 |
| PS Business Parks, Inc. | 22,155 | 1,616,429 |
| QTS Realty Trust, Inc., Class A | 45,832 | 1,841,988 |
| RAIT Financial Trust | 83,275 | 432,197 |
| Ramco-Gershenson Properties Trust | 91,934 | 1,424,977 |
| Redwood Trust, Inc. | 98,974 | 1,444,031 |
| Resource Capital Corp. | 157,396 | 509,963 |
| Retail Opportunity Investments Corp. | 115,134 | 1,834,085 |
| Retail Properties of America, Inc., Class A | 278,501 | 3,801,539 |
| Rexford Industrial Realty, Inc. | 61,673 | 796,815 |
| RLJ Lodging Trust | 152,180 | 4,191,037 |
| Rouse Properties, Inc. | 42,463 | 659,875 |
| Ryman Hospitality Properties, Inc. | 60,050 | 3,076,361 |
| Sabra Health Care REIT, Inc. | 71,498 | 1,713,807 |
| Saul Centers, Inc. | 15,188 | 749,376 |
| Select Income REIT | 40,735 | 755,634 |
| Silver Bay Realty Trust Corp. | 46,904 | 734,517 |
| Sovran Self Storage, Inc. | 41,852 | 3,755,380 |
| Spirit Realty Capital, Inc. | 501,981 | 4,819,018 |
| STAG Industrial, Inc. | 73,028 | 1,245,858 |
| Starwood Property Trust, Inc. | 273,559 | 5,821,336 |
| Starwood Waypoint Residential Trust | 42,641 | 1,027,222 |
| STORE Capital Corp. | 57,784 | 1,164,925 |
| Strategic Hotels & Resorts, Inc. * | 313,217 | 4,225,297 |
| Summit Hotel Properties, Inc. | 102,121 | 1,238,728 |
| Sun Communities, Inc. | 58,680 | 3,826,523 |
| Sunstone Hotel Investors, Inc. | 244,733 | 3,384,657 |
| Tanger Factory Outlet Centers, Inc. | 109,473 | 3,463,726 |
| Tejon Ranch Co. * | 17,375 | 410,571 |
| The Geo Group, Inc. | 85,691 | 2,573,301 |
| The Howard Hughes Corp. * | 41,315 | 5,188,751 |
| The St. Joe Co. * | 104,409 | 1,821,937 |
| Two Harbors Investment Corp. | 419,794 | 3,971,251 |
| Universal Health Realty Income Trust | 16,516 | 759,736 |
| Urban Edge Properties | 109,265 | 2,284,731 |
| Urstadt Biddle Properties, Inc., Class A | 33,797 | 605,980 |
| Washington Real Estate Investment Trust | 80,277 | 1,974,814 |
See financial notes 55
Schwab U.S. Small-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Western Asset Mortgage Capital Corp. (a) | 47,110 | 602,066 |
| Whitestone REIT | 27,391 | 312,805 |
| WP GLIMCHER, Inc. | 211,419 | 2,560,284 |
| Xenia Hotels & Resorts, Inc. | 128,230 | 2,372,255 |
| 301,286,138 | ||
| Retailing 4.3% | ||
| 1-800-Flowers.com, Inc., Class A * | 23,102 | 193,826 |
| Aaron's, Inc. | 74,227 | 2,794,647 |
| Abercrombie & Fitch Co., Class A (a) | 77,300 | 1,535,178 |
| America's Car-Mart, Inc. * | 8,028 | 287,402 |
| American Eagle Outfitters, Inc. | 201,347 | 3,426,926 |
| Asbury Automotive Group, Inc. * | 31,793 | 2,561,562 |
| Ascena Retail Group, Inc. * | 207,383 | 2,503,110 |
| Barnes & Noble Education, Inc. * | 44,123 | 569,187 |
| Barnes & Noble, Inc. | 70,459 | 1,099,865 |
| Big Lots, Inc. | 61,012 | 2,927,966 |
| Blue Nile, Inc. * | 12,623 | 429,939 |
| Boot Barn Holdings, Inc. * | 13,247 | 289,314 |
| Burlington Stores, Inc. * | 85,837 | 4,557,086 |
| Cabela's, Inc. * | 54,551 | 2,453,158 |
| Caleres, Inc. | 49,990 | 1,664,667 |
| Chico's FAS, Inc. | 181,214 | 2,701,901 |
| Conn's, Inc. *(a) | 29,085 | 868,187 |
| Core-Mark Holding Co., Inc. | 26,634 | 1,600,970 |
| CST Brands, Inc. | 88,948 | 3,088,275 |
| DSW, Inc., Class A | 82,466 | 2,448,416 |
| Etsy, Inc. *(a) | 18,468 | 264,646 |
| Express, Inc. * | 96,280 | 1,964,112 |
| Five Below, Inc. * | 62,247 | 2,407,091 |
| Francesca's Holdings Corp. * | 45,408 | 510,386 |
| Fred's, Inc., Class A | 41,187 | 540,373 |
| FTD Cos., Inc. * | 22,779 | 680,864 |
| Genesco, Inc. * | 27,041 | 1,619,485 |
| GNC Holdings, Inc., Class A | 99,730 | 4,667,364 |
| Group 1 Automotive, Inc. | 24,492 | 2,140,601 |
| Guess?, Inc. | 74,886 | 1,655,729 |
| Haverty Furniture Cos., Inc. | 26,255 | 606,753 |
| Hibbett Sports, Inc. * | 27,571 | 1,089,054 |
| HSN, Inc. | 36,998 | 2,249,848 |
| J.C. Penney Co., Inc. * | 350,726 | 3,195,114 |
| Lands' End, Inc. *(a) | 15,907 | 404,674 |
| Liberty TripAdvisor Holdings, Inc., Class A * | 79,603 | 2,019,528 |
| Liberty Ventures, Series A * | 150,743 | 5,989,019 |
| Lithia Motors, Inc., Class A | 25,613 | 2,730,346 |
| Lumber Liquidators Holdings, Inc. *(a) | 30,792 | 465,267 |
| MarineMax, Inc. * | 28,697 | 467,761 |
| Mattress Firm Holding Corp. *(a) | 18,428 | 1,107,339 |
| Monro Muffler Brake, Inc. | 35,873 | 2,273,989 |
| Murphy USA, Inc. * | 49,366 | 2,523,096 |
| Nutrisystem, Inc. | 36,810 | 1,029,944 |
| Office Depot, Inc. * | 556,357 | 4,411,911 |
| Orbitz Worldwide, Inc. * | 108,792 | 1,247,844 |
| Outerwall, Inc. (a) | 20,120 | 1,239,392 |
| Overstock.com, Inc. * | 18,484 | 363,211 |
| Party City Holdco, Inc. * | 21,179 | 358,772 |
| Penske Automotive Group, Inc. | 47,246 | 2,390,648 |
| Security | Number of Shares | Value ($) |
| PetMed Express, Inc. (a) | 23,196 | 384,590 |
| Pier 1 Imports, Inc. | 106,593 | 1,085,117 |
| Pool Corp. | 50,484 | 3,517,725 |
| Rent-A-Center, Inc. | 61,991 | 1,666,938 |
| Restoration Hardware Holdings, Inc. * | 41,857 | 3,870,935 |
| Sears Holdings Corp. *(a) | 56,551 | 1,508,781 |
| Sears Hometown & Outlet Stores, Inc. * | 9,064 | 69,612 |
| Select Comfort Corp. * | 61,932 | 1,508,044 |
| Shoe Carnival, Inc. | 18,641 | 482,802 |
| Shutterfly, Inc. * | 43,953 | 1,708,014 |
| Sonic Automotive, Inc., Class A | 38,031 | 818,047 |
| Stage Stores, Inc. | 39,685 | 426,217 |
| Stein Mart, Inc. | 33,186 | 356,418 |
| Systemax, Inc. * | 10,933 | 99,709 |
| The Buckle, Inc. (a) | 32,996 | 1,392,431 |
| The Cato Corp., Class A | 30,541 | 1,072,905 |
| The Children's Place, Inc. | 22,474 | 1,346,642 |
| The Container Store Group, Inc. *(a) | 13,665 | 231,075 |
| The Finish Line, Inc., Class A | 53,765 | 1,417,783 |
| The Men's Wearhouse, Inc. | 51,972 | 2,933,819 |
| The Michaels Cos., Inc. * | 85,112 | 2,230,786 |
| The Pep Boys-Manny, Moe & Jack * | 65,507 | 792,635 |
| Tile Shop Holdings, Inc. *(a) | 32,285 | 384,192 |
| Travelport Worldwide Ltd. (a) | 33,899 | 449,162 |
| Tuesday Morning Corp. * | 52,570 | 416,880 |
| Vitamin Shoppe, Inc. * | 35,203 | 1,260,267 |
| Wayfair, Inc., Class A *(a) | 12,269 | 457,634 |
| Weyco Group, Inc. | 5,888 | 158,682 |
| Winmark Corp. | 2,342 | 231,624 |
| zulily, Inc., Class A * | 20,998 | 372,715 |
| Zumiez, Inc. * | 26,015 | 606,410 |
| 123,874,334 | ||
| Semiconductors & Semiconductor Equipment 2.9% | ||
| Advanced Energy Industries, Inc. * | 45,527 | 1,104,940 |
| Advanced Micro Devices, Inc. *(a) | 712,639 | 1,289,877 |
| Amkor Technology, Inc. * | 129,890 | 701,406 |
| Applied Micro Circuits Corp. * | 92,132 | 538,972 |
| Atmel Corp. | 479,336 | 3,916,175 |
| Brooks Automation, Inc. | 82,699 | 858,416 |
| Cabot Microelectronics Corp. * | 27,152 | 1,177,854 |
| Cavium, Inc. * | 62,937 | 4,280,975 |
| CEVA, Inc. * | 20,293 | 390,640 |
| Cirrus Logic, Inc. * | 74,169 | 2,236,937 |
| Cohu, Inc. | 26,485 | 256,905 |
| Cypress Semiconductor Corp. * | 382,239 | 3,822,390 |
| Diodes, Inc. * | 41,100 | 809,259 |
| Entegris, Inc. * | 165,113 | 2,267,002 |
| Exar Corp. * | 50,026 | 295,153 |
| Fairchild Semiconductor International, Inc. * | 129,245 | 1,757,732 |
| FormFactor, Inc. * | 68,442 | 455,139 |
| Inphi Corp. * | 30,743 | 729,839 |
| Integrated Device Technology, Inc. * | 166,627 | 3,164,247 |
| Integrated Silicon Solution, Inc. | 36,416 | 800,060 |
| Intersil Corp., Class A | 146,258 | 1,541,559 |
| IXYS Corp. | 29,795 | 351,283 |
| Kulicke & Soffa Industries, Inc. * | 85,618 | 904,126 |
| Lattice Semiconductor Corp. * | 144,037 | 602,075 |
56 See financial notes
Schwab U.S. Small-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| M/A-COM Technology Solutions Holdings, Inc. * | 23,165 | 683,599 |
| Microsemi Corp. * | 107,161 | 3,403,433 |
| MKS Instruments, Inc. | 63,276 | 2,132,401 |
| Monolithic Power Systems, Inc. | 40,665 | 1,955,580 |
| Nanometrics, Inc. * | 27,469 | 381,544 |
| OmniVision Technologies, Inc. * | 66,337 | 1,585,454 |
| ON Semiconductor Corp. * | 488,738 | 4,669,892 |
| PDF Solutions, Inc. * | 32,021 | 390,016 |
| Photronics, Inc. * | 78,300 | 713,313 |
| PMC-Sierra, Inc. * | 234,196 | 1,473,093 |
| Power Integrations, Inc. | 34,169 | 1,341,133 |
| Qorvo, Inc. * | 172,913 | 9,598,401 |
| Rambus, Inc. * | 127,565 | 1,713,198 |
| Rudolph Technologies, Inc. * | 36,925 | 471,163 |
| Semtech Corp. * | 75,232 | 1,275,182 |
| Silicon Laboratories, Inc. * | 44,734 | 1,945,034 |
| SolarEdge Technologies, Inc. * | 8,008 | 201,161 |
| SunEdison Semiconductor Ltd. * | 48,469 | 581,628 |
| SunEdison, Inc. * | 333,765 | 3,471,156 |
| SunPower Corp. * | 62,228 | 1,509,651 |
| Synaptics, Inc. * | 42,229 | 2,959,831 |
| Teradyne, Inc. | 246,029 | 4,438,363 |
| Tessera Technologies, Inc. | 52,487 | 1,718,424 |
| Ultratech, Inc. * | 30,420 | 523,224 |
| Veeco Instruments, Inc. * | 47,609 | 1,098,340 |
| 84,487,175 | ||
| Software & Services 8.6% | ||
| A10 Networks, Inc. * | 23,556 | 156,412 |
| ACI Worldwide, Inc. * | 134,466 | 2,868,160 |
| Actua Corp. * | 44,363 | 631,285 |
| Acxiom Corp. * | 92,024 | 1,928,823 |
| Angie's List, Inc. *(a) | 51,294 | 271,345 |
| Aspen Technology, Inc. * | 101,118 | 3,829,339 |
| Bankrate, Inc. * | 68,106 | 671,525 |
| Barracuda Networks, Inc. * | 10,899 | 286,535 |
| Bazaarvoice, Inc. * | 67,248 | 349,017 |
| Benefitfocus, Inc. *(a) | 14,536 | 533,180 |
| Blackbaud, Inc. | 52,355 | 2,991,565 |
| Blackhawk Network Holdings, Inc. * | 61,302 | 2,422,042 |
| Blucora, Inc. * | 51,987 | 725,739 |
| Booz Allen Hamilton Holding Corp. | 113,212 | 3,022,760 |
| Bottomline Technologies (DE), Inc. * | 43,061 | 1,151,451 |
| Broadridge Financial Solutions, Inc. | 138,192 | 7,295,156 |
| BroadSoft, Inc. * | 31,486 | 993,698 |
| CACI International, Inc., Class A * | 27,695 | 2,171,842 |
| Carbonite, Inc. * | 14,063 | 154,834 |
| Cardtronics, Inc. * | 52,523 | 1,812,043 |
| Cass Information Systems, Inc. | 11,210 | 540,322 |
| ChannelAdvisor Corp. * | 22,911 | 260,727 |
| Ciber, Inc. * | 74,853 | 255,997 |
| CommVault Systems, Inc. * | 48,778 | 1,748,204 |
| comScore, Inc. * | 38,502 | 2,010,189 |
| Comverse, Inc. * | 28,508 | 537,091 |
| Constant Contact, Inc. * | 35,298 | 873,978 |
| Convergys Corp. | 115,707 | 2,614,978 |
| CoreLogic, Inc. * | 104,165 | 3,953,062 |
| Cornerstone OnDemand, Inc. * | 54,263 | 1,939,360 |
| CoStar Group, Inc. * | 37,047 | 6,558,801 |
| Coupons.com, Inc. *(a) | 19,175 | 179,094 |
| Security | Number of Shares | Value ($) |
| CSG Systems International, Inc. | 35,698 | 1,103,425 |
| Cvent, Inc. * | 21,009 | 662,624 |
| Dealertrack Technologies, Inc. * | 52,056 | 3,267,035 |
| Demandware, Inc. * | 36,967 | 2,062,389 |
| DHI Group, Inc. * | 40,217 | 313,693 |
| DST Systems, Inc. | 32,495 | 3,328,138 |
| EarthLink Holdings Corp. | 124,547 | 1,044,949 |
| Ebix, Inc. (a) | 33,549 | 952,456 |
| Ellie Mae, Inc. * | 32,305 | 2,339,851 |
| Endurance International Group Holdings, Inc. * | 65,711 | 1,004,721 |
| EnerNOC, Inc. * | 30,605 | 285,851 |
| Envestnet, Inc. * | 40,394 | 1,261,505 |
| EPAM Systems, Inc. * | 28,772 | 2,031,591 |
| Epiq Systems, Inc. | 33,664 | 428,206 |
| ePlus, Inc. * | 6,633 | 502,251 |
| Euronet Worldwide, Inc. * | 56,778 | 3,660,478 |
| Everi Holdings, Inc. * | 81,740 | 422,596 |
| EVERTEC, Inc. | 73,939 | 1,338,296 |
| Everyday Health, Inc. * | 8,668 | 84,600 |
| ExlService Holdings, Inc. * | 38,547 | 1,394,630 |
| Fair Isaac Corp. | 36,444 | 3,118,513 |
| Five9, Inc. * | 12,545 | 49,302 |
| Forrester Research, Inc. | 13,221 | 417,916 |
| Fortinet, Inc. * | 162,902 | 6,864,690 |
| Genpact Ltd. * | 179,009 | 4,117,207 |
| Gigamon, Inc. * | 28,400 | 646,952 |
| GoDaddy, Inc., Class A * | 26,202 | 657,146 |
| Gogo, Inc. *(a) | 60,712 | 964,714 |
| GrubHub, Inc. * | 19,828 | 524,451 |
| Guidewire Software, Inc. * | 84,522 | 4,725,625 |
| Heartland Payment Systems, Inc. | 41,241 | 2,457,139 |
| HomeAway, Inc. * | 99,158 | 2,844,843 |
| Hortonworks, Inc. *(a) | 6,650 | 158,004 |
| HubSpot, Inc. * | 10,706 | 506,287 |
| Imperva, Inc. * | 28,595 | 1,703,690 |
| Infoblox, Inc. * | 56,674 | 1,090,408 |
| Interactive Intelligence Group, Inc. * | 20,737 | 726,002 |
| Internap Corp. * | 61,217 | 487,899 |
| Intralinks Holdings, Inc. * | 45,539 | 466,319 |
| j2 Global, Inc. | 52,267 | 3,636,738 |
| Jive Software, Inc. * | 49,954 | 225,293 |
| Leidos Holdings, Inc. | 71,936 | 3,027,067 |
| Liquidity Services, Inc. * | 33,192 | 248,940 |
| LivePerson, Inc. * | 60,196 | 550,793 |
| LogMeIn, Inc. * | 28,391 | 1,769,895 |
| Manhattan Associates, Inc. * | 85,144 | 4,979,221 |
| ManTech International Corp., Class A | 25,981 | 711,620 |
| Marketo, Inc. * | 31,514 | 882,707 |
| MAXIMUS, Inc. | 76,209 | 4,614,455 |
| Mentor Graphics Corp. | 114,191 | 2,950,695 |
| MicroStrategy, Inc., Class A * | 10,337 | 2,053,962 |
| MoneyGram International, Inc. * | 36,336 | 317,577 |
| Monotype Imaging Holdings, Inc. | 43,628 | 924,041 |
| Monster Worldwide, Inc. * | 106,283 | 772,677 |
| NeuStar, Inc., Class A *(a) | 64,329 | 1,797,996 |
| New Relic, Inc. * | 5,612 | 182,727 |
| NIC, Inc. | 69,284 | 1,305,311 |
| OPOWER, Inc. *(a) | 7,627 | 69,101 |
| Pandora Media, Inc. * | 215,845 | 3,872,259 |
| Paycom Software, Inc. * | 29,058 | 1,119,895 |
See financial notes 57
Schwab U.S. Small-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Paylocity Holding Corp. * | 23,200 | 766,064 |
| Pegasystems, Inc. | 40,725 | 998,170 |
| Perficient, Inc. * | 43,360 | 718,042 |
| Progress Software Corp. * | 56,360 | 1,526,792 |
| Proofpoint, Inc. * | 40,585 | 2,286,559 |
| PROS Holdings, Inc. * | 35,306 | 780,969 |
| PTC, Inc. * | 129,727 | 4,296,558 |
| Q2 Holdings, Inc. * | 19,767 | 517,105 |
| Qlik Technologies, Inc. * | 103,067 | 3,902,117 |
| Qualys, Inc. * | 24,413 | 709,442 |
| RealNetworks, Inc. * | 27,069 | 117,209 |
| RealPage, Inc. * | 57,609 | 1,060,582 |
| RetailMeNot, Inc. * | 45,674 | 411,066 |
| RingCentral, Inc., Class A * | 38,263 | 658,506 |
| Rocket Fuel, Inc. *(a) | 30,713 | 188,271 |
| Rovi Corp. * | 98,154 | 1,086,565 |
| Science Applications International Corp. | 45,641 | 2,225,912 |
| SciQuest, Inc. * | 30,327 | 332,990 |
| ServiceSource International, Inc. * | 77,054 | 365,236 |
| Shutterstock, Inc. *(a) | 17,391 | 582,772 |
| Silver Spring Networks, Inc. * | 33,007 | 382,881 |
| SolarWinds, Inc. * | 77,867 | 3,095,213 |
| Splunk, Inc. * | 142,799 | 8,849,254 |
| SPS Commerce, Inc. * | 18,419 | 1,252,860 |
| SS&C Technologies Holdings, Inc. | 85,693 | 5,804,844 |
| Stamps.com, Inc. * | 17,516 | 1,442,267 |
| Sykes Enterprises, Inc. * | 43,670 | 1,098,300 |
| Synchronoss Technologies, Inc. * | 42,875 | 1,731,721 |
| Syntel, Inc. * | 34,720 | 1,543,304 |
| Tableau Software, Inc., Class A * | 46,934 | 4,419,775 |
| Take-Two Interactive Software, Inc. * | 95,473 | 2,781,128 |
| Tangoe, Inc. * | 41,642 | 312,315 |
| TeleTech Holdings, Inc. | 19,725 | 533,561 |
| Textura Corp. *(a) | 22,151 | 572,825 |
| The Rubicon Project, Inc. * | 22,324 | 321,466 |
| The Ultimate Software Group, Inc. * | 32,430 | 5,713,842 |
| TiVo, Inc. * | 116,482 | 1,059,986 |
| TrueCar, Inc. *(a) | 17,949 | 106,079 |
| Tyler Technologies, Inc. * | 38,156 | 5,267,054 |
| Unisys Corp. * | 56,966 | 750,242 |
| Varonis Systems, Inc. * | 6,015 | 119,097 |
| VASCO Data Security International, Inc. *(a) | 31,957 | 534,321 |
| VeriFone Systems, Inc. * | 129,830 | 4,055,889 |
| Verint Systems, Inc. * | 70,328 | 3,750,592 |
| VirnetX Holding Corp. *(a) | 49,315 | 179,013 |
| Virtusa Corp. * | 31,692 | 1,677,141 |
| Web.com Group, Inc. * | 56,427 | 1,214,873 |
| WebMD Health Corp. * | 40,356 | 1,659,842 |
| WEX, Inc. * | 44,388 | 4,195,998 |
| Workiva, Inc. * | 9,144 | 131,034 |
| XO Group, Inc. * | 31,583 | 462,691 |
| Xoom Corp. * | 34,216 | 849,583 |
| Yelp, Inc. * | 73,851 | 1,793,102 |
| Zendesk, Inc. * | 58,840 | 1,216,811 |
| Zillow Group, Inc., Class A *(a) | 50,993 | 1,294,202 |
| Zillow Group, Inc., Class C *(a) | 101,986 | 2,514,975 |
| Zynga, Inc., Class A * | 750,731 | 1,899,349 |
| 249,886,273 |
| Security | Number of Shares | Value ($) |
| Technology Hardware & Equipment 5.0% | ||
| ADTRAN, Inc. | 61,159 | 979,767 |
| Aerohive Networks, Inc. *(a) | 9,156 | 56,950 |
| Anixter International, Inc. * | 31,846 | 2,027,316 |
| Arista Networks, Inc. * | 5,775 | 431,912 |
| ARRIS Group, Inc. * | 149,778 | 3,957,135 |
| Avid Technology, Inc. * | 36,005 | 299,202 |
| AVX Corp. | 58,645 | 765,904 |
| Badger Meter, Inc. | 16,431 | 957,763 |
| Belden, Inc. | 49,196 | 2,478,986 |
| Benchmark Electronics, Inc. * | 63,011 | 1,346,545 |
| Black Box Corp. | 20,924 | 322,230 |
| Brocade Communications Systems, Inc. | 493,762 | 5,258,565 |
| CalAmp Corp. * | 42,326 | 703,458 |
| Calix, Inc. * | 54,654 | 437,779 |
| CDW Corp. | 160,306 | 6,372,164 |
| Checkpoint Systems, Inc. | 50,253 | 406,044 |
| Ciena Corp. * | 138,464 | 3,096,055 |
| Cognex Corp. | 98,966 | 3,519,231 |
| Coherent, Inc. * | 28,150 | 1,641,145 |
| CommScope Holding Co., Inc. * | 141,883 | 4,589,915 |
| Comtech Telecommunications Corp. | 17,749 | 473,543 |
| Control4 Corp. *(a) | 17,583 | 157,720 |
| Cray, Inc. * | 46,304 | 981,182 |
| CTS Corp. | 35,198 | 663,482 |
| Daktronics, Inc. | 44,989 | 390,954 |
| Diebold, Inc. | 72,091 | 2,243,472 |
| Dolby Laboratories, Inc., Class A | 49,275 | 1,604,394 |
| DTS, Inc. * | 17,704 | 469,687 |
| EchoStar Corp., Class A * | 48,759 | 2,174,651 |
| Electro Rent Corp. | 22,082 | 235,394 |
| Electronics For Imaging, Inc. * | 52,250 | 2,286,983 |
| Extreme Networks, Inc. * | 118,448 | 355,344 |
| Fabrinet * | 30,986 | 616,002 |
| FARO Technologies, Inc. * | 19,499 | 757,536 |
| FEI Co. | 47,915 | 3,616,624 |
| Finisar Corp. * | 120,035 | 1,852,140 |
| GSI Group, Inc. * | 31,032 | 403,106 |
| Harmonic, Inc. * | 105,539 | 608,960 |
| II-VI, Inc. * | 71,113 | 1,201,099 |
| Infinera Corp. * | 172,178 | 3,756,924 |
| Ingram Micro, Inc., Class A | 177,699 | 4,808,535 |
| Insight Enterprises, Inc. * | 44,744 | 1,132,471 |
| InterDigital, Inc. | 42,368 | 2,095,945 |
| InvenSense, Inc. *(a) | 82,745 | 844,826 |
| IPG Photonics Corp. * | 40,398 | 3,410,399 |
| Itron, Inc. * | 44,727 | 1,341,810 |
| Ixia * | 68,676 | 1,062,418 |
| Knowles Corp. *(a) | 104,147 | 1,695,513 |
| Lexmark International, Inc., Class A | 70,887 | 2,125,192 |
| Littelfuse, Inc. | 26,122 | 2,344,450 |
| Lumentum Holdings, Inc. * | 52,785 | 1,041,976 |
| Maxwell Technologies, Inc. *(a) | 36,845 | 196,752 |
| Methode Electronics, Inc. | 42,514 | 1,129,597 |
| MTS Systems Corp. | 17,881 | 1,064,635 |
| NETGEAR, Inc. * | 40,147 | 1,219,666 |
| NetScout Systems, Inc. * | 108,248 | 3,956,464 |
| Newport Corp. * | 47,226 | 722,558 |
| Nimble Storage, Inc. * | 31,167 | 830,912 |
58 See financial notes
Schwab U.S. Small-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| OSI Systems, Inc. * | 21,012 | 1,534,717 |
| Palo Alto Networks, Inc. * | 79,243 | 13,013,285 |
| Park Electrochemical Corp. | 25,250 | 444,653 |
| PC Connection, Inc. | 22,944 | 483,430 |
| Plantronics, Inc. | 44,106 | 2,344,675 |
| Plexus Corp. * | 37,514 | 1,428,158 |
| Polycom, Inc. * | 154,958 | 1,667,348 |
| QLogic Corp. * | 100,866 | 1,042,954 |
| Quantum Corp. * | 290,389 | 339,755 |
| RealD, Inc. * | 54,451 | 512,384 |
| Rofin-Sinar Technologies, Inc. * | 30,844 | 785,597 |
| Rogers Corp. * | 20,593 | 1,146,206 |
| Ruckus Wireless, Inc. * | 65,341 | 739,660 |
| Sanmina Corp. * | 92,636 | 1,782,317 |
| ScanSource, Inc. * | 34,081 | 1,301,894 |
| ShoreTel, Inc. * | 70,372 | 523,568 |
| Silicon Graphics International Corp. * | 42,756 | 213,780 |
| Sonus Networks, Inc. * | 58,575 | 412,368 |
| Super Micro Computer, Inc. * | 41,172 | 1,126,054 |
| SYNNEX Corp. | 31,843 | 2,521,647 |
| Tech Data Corp. * | 40,922 | 2,669,751 |
| TTM Technologies, Inc. * | 67,623 | 461,189 |
| Ubiquiti Networks, Inc. (a) | 29,613 | 1,041,193 |
| Universal Display Corp. * | 46,842 | 1,725,659 |
| ViaSat, Inc. * | 51,312 | 3,015,606 |
| Viavi Solutions, Inc. * | 263,951 | 1,417,417 |
| Vishay Intertechnology, Inc. | 153,691 | 1,518,467 |
| Zebra Technologies Corp., Class A * | 58,687 | 4,863,979 |
| 145,599,093 | ||
| Telecommunication Services 0.5% | ||
| 8x8, Inc. * | 91,244 | 705,316 |
| Atlantic Tele-Network, Inc. | 12,348 | 882,265 |
| Cincinnati Bell, Inc. * | 254,444 | 872,743 |
| Cogent Communications Holdings, Inc. | 48,083 | 1,335,265 |
| Consolidated Communications Holdings, Inc. | 51,384 | 1,002,502 |
| FairPoint Communications, Inc. * | 25,557 | 418,112 |
| General Communication, Inc., Class A * | 34,951 | 588,924 |
| Globalstar, Inc. *(a) | 295,459 | 520,008 |
| IDT Corp., Class B | 22,800 | 356,136 |
| inContact, Inc. * | 68,676 | 518,504 |
| Intelsat S.A. *(a) | 16,515 | 159,700 |
| Iridium Communications, Inc. *(a) | 94,178 | 701,626 |
| NTELOS Holdings Corp. * | 27,378 | 251,056 |
| Pacific DataVision, Inc. *(a) | 14,413 | 460,784 |
| Premiere Global Services, Inc. * | 53,153 | 572,989 |
| Shenandoah Telecommunications Co. | 25,361 | 981,217 |
| Spok Holdings, Inc. | 23,191 | 382,883 |
| Telephone & Data Systems, Inc. | 113,063 | 3,215,512 |
| United States Cellular Corp. * | 17,404 | 642,556 |
| Vonage Holdings Corp. * | 193,966 | 1,076,511 |
| 15,644,609 | ||
| Security | Number of Shares | Value ($) |
| Transportation 2.4% | ||
| Air Transport Services Group, Inc. * | 60,869 | 553,299 |
| Alaska Air Group, Inc. | 151,596 | 11,348,476 |
| Allegiant Travel Co. | 15,429 | 3,136,098 |
| AMERCO | 7,075 | 2,650,012 |
| ArcBest Corp. | 27,156 | 784,265 |
| Atlas Air Worldwide Holdings, Inc. * | 28,392 | 1,172,873 |
| Celadon Group, Inc. | 33,738 | 644,058 |
| Con-way, Inc. | 65,284 | 2,297,997 |
| Echo Global Logistics, Inc. * | 26,846 | 624,438 |
| Forward Air Corp. | 34,310 | 1,544,636 |
| Hawaiian Holdings, Inc. * | 60,025 | 1,360,166 |
| Heartland Express, Inc. | 63,792 | 1,291,150 |
| Hub Group, Inc., Class A * | 37,921 | 1,429,242 |
| JetBlue Airways Corp. * | 303,975 | 6,784,722 |
| Knight Transportation, Inc. | 71,443 | 1,943,250 |
| Landstar System, Inc. | 50,935 | 3,371,897 |
| Marten Transport Ltd. | 28,238 | 522,685 |
| Matson, Inc. | 49,370 | 1,860,262 |
| Old Dominion Freight Line, Inc. * | 80,239 | 5,335,091 |
| Park-Ohio Holdings Corp. | 10,843 | 390,999 |
| Republic Airways Holdings, Inc. * | 62,120 | 191,330 |
| Roadrunner Transportation Systems, Inc. * | 31,357 | 679,820 |
| Ryder System, Inc. | 64,281 | 5,269,114 |
| Saia, Inc. * | 28,185 | 1,058,347 |
| SkyWest, Inc. | 58,821 | 935,254 |
| Spirit Airlines, Inc. * | 84,839 | 4,347,999 |
| Swift Transportation Co. * | 96,974 | 1,890,023 |
| Universal Truckload Services, Inc. | 8,812 | 172,980 |
| UTi Worldwide, Inc. * | 106,407 | 757,618 |
| Virgin America, Inc. *(a) | 15,160 | 494,671 |
| Werner Enterprises, Inc. | 49,889 | 1,321,560 |
| Wesco Aircraft Holdings, Inc. * | 60,784 | 853,407 |
| XPO Logistics, Inc. *(a) | 79,999 | 2,807,965 |
| 69,825,704 | ||
| Utilities 3.1% | ||
| ALLETE, Inc. | 49,839 | 2,381,308 |
| American States Water Co. | 44,736 | 1,688,784 |
| Atmos Energy Corp. | 115,548 | 6,330,875 |
| Avista Corp. | 64,382 | 2,020,951 |
| Black Hills Corp. | 50,854 | 2,022,972 |
| California Water Service Group | 53,424 | 1,102,137 |
| Chesapeake Utilities Corp. | 16,831 | 829,263 |
| Cleco Corp. | 70,345 | 3,769,085 |
| Connecticut Water Service, Inc. | 12,595 | 437,676 |
| Dynegy, Inc. * | 130,159 | 3,351,594 |
| El Paso Electric Co. | 47,982 | 1,698,563 |
| Great Plains Energy, Inc. | 175,887 | 4,383,104 |
| Hawaiian Electric Industries, Inc. | 122,931 | 3,475,259 |
| IDACORP, Inc. | 59,111 | 3,509,420 |
| MGE Energy, Inc. | 41,595 | 1,599,744 |
| Middlesex Water Co. | 18,767 | 427,137 |
| New Jersey Resources Corp. | 96,501 | 2,728,083 |
| Northwest Natural Gas Co. | 30,383 | 1,336,244 |
| NorthWestern Corp. | 58,499 | 3,020,888 |
| NRG Yield, Inc., Class A (a) | 38,999 | 613,454 |
| NRG Yield, Inc., Class C (a) | 65,967 | 1,059,430 |
| ONE Gas, Inc. | 59,097 | 2,539,398 |
See financial notes 59
Schwab U.S. Small-Cap ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| Ormat Technologies, Inc. | 42,640 | 1,500,928 |
| Otter Tail Corp. | 41,321 | 1,066,495 |
| Pattern Energy Group, Inc. | 64,702 | 1,466,794 |
| Piedmont Natural Gas Co., Inc. | 91,910 | 3,545,888 |
| PNM Resources, Inc. | 93,410 | 2,392,230 |
| Portland General Electric Co. | 100,289 | 3,463,982 |
| Questar Corp. | 205,478 | 3,967,780 |
| SJW Corp. | 16,843 | 484,068 |
| South Jersey Industries, Inc. | 75,968 | 1,830,829 |
| Southwest Gas Corp. | 52,490 | 2,891,674 |
| Talen Energy Corp. * | 93,531 | 1,332,817 |
| TerraForm Power, Inc., Class A * | 70,944 | 1,596,240 |
| The Empire District Electric Co. | 48,021 | 1,039,655 |
| The Laclede Group, Inc. | 49,410 | 2,615,766 |
| UIL Holdings Corp. | 65,943 | 3,002,385 |
| Unitil Corp. | 14,527 | 523,117 |
| Vectren Corp. | 96,693 | 3,889,959 |
| Vivint Solar, Inc. *(a) | 24,879 | 309,495 |
| WGL Holdings, Inc. | 56,467 | 3,060,512 |
| 90,305,983 | ||
| Total Common Stock | ||
| (Cost $2,640,079,527) | 2,888,774,055 | |
| Rights 0.0% of net assets | ||
| Pharmaceuticals, Biotechnology & Life Sciences 0.0% | ||
| Forest Laboratories, Inc., CVR *(b)(c) | 5,521 | — |
| Telecommunication Services 0.0% | ||
| Leap Wireless CVR *(b)(c) | 45,801 | 115,419 |
| Total Rights | ||
| (Cost $115,419) | 115,419 | |
| Warrants 0.0% of net assets | ||
| Energy 0.0% | ||
| Magnum Hunter Resources Corp. *(a)(b)(c) | 11,911 | — |
| Total Warrants | ||
| (Cost $—) | — | |
| Other Investment Companies 3.0% of net assets | ||
| Money Market Fund 0.3% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d) | 7,775,150 | 7,775,150 |
| Security | Number of Shares | Value ($) |
| Securities Lending Collateral 2.7% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d) | 77,911,683 | 77,911,683 |
| Total Other Investment Companies | ||
| (Cost $85,686,833) | 85,686,833 | |
End of Investments
At 08/31/15, the tax basis cost of the fund's investments was $2,727,145,511 and the unrealized appreciation and depreciation were $471,769,085 and ($224,338,289), respectively, with a net unrealized appreciation of $247,430,796.
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $75,089,306. Non-cash collateral pledged to the fund for securities on loan amounted to $35,619. |
| (b) | Fair-valued by management in accordance with procedures approved by the Board of Trustees. |
| (c) | Illiquid security. At the period end, the value of these amounted to $115,419 or 0.0% of net assets. |
| (d) | The rate shown is the 7-day yield. |
| CVR — | Contingent Value Rights |
| REIT — | Real Estate Investment Trust |
In addition to the above, the fund held the following at 08/31/15:
| Number of Contracts | Contract Value ($) | Unrealized Appreciation ($) | ||||
| Futures Contracts | ||||||
| Russell 2000 Index, e-mini, Long, expires 09/18/15 | 22 | 2,546,500 | 83,695 | |||
60 See financial notes
Schwab U.S. Dividend Equity ETF
Portfolio Holdings as of August 31, 2015
This section shows all the securities in the fund's portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be viewed and copied at the SEC's Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund's website at www.csimfunds.com/schwabetfs_prospectus.
| Holdings by Category | Cost ($) | Value ($) | |
| 99.6% | Common Stock | 2,594,120,757 | 2,487,882,717 |
| 0.0% | Other Investment Companies | 839,284 | 848,642 |
| 99.6% | Total Investments | 2,594,960,041 | 2,488,731,359 |
| 0.4% | Other Assets and Liabilities, Net | 9,076,324 | |
| 100.0% | Net Assets | 2,497,807,683 | |
| Security | Number of Shares | Value ($) |
| Common Stock 99.6% of net assets | ||
| Banks 0.2% | ||
| PacWest Bancorp | 60,190 | 2,566,502 |
| Umpqua Holdings Corp. | 134,724 | 2,251,238 |
| 4,817,740 | ||
| Capital Goods 12.1% | ||
| 3M Co. | 392,143 | 55,739,206 |
| Caterpillar, Inc. | 374,894 | 28,656,897 |
| Eaton Corp. plc | 294,438 | 16,800,632 |
| Emerson Electric Co. | 423,702 | 20,219,059 |
| Fastenal Co. | 166,613 | 6,421,265 |
| Lockheed Martin Corp. | 166,175 | 33,431,087 |
| PACCAR, Inc. | 219,617 | 12,950,815 |
| Raytheon Co. | 190,689 | 19,557,064 |
| Rockwell Automation, Inc. | 83,964 | 9,389,694 |
| The Boeing Co. | 404,675 | 52,882,929 |
| United Technologies Corp. | 510,900 | 46,803,549 |
| 302,852,197 | ||
| Commercial & Professional Services 0.1% | ||
| R.R. Donnelley & Sons Co. | 127,948 | 2,008,784 |
| Consumer Durables & Apparel 0.7% | ||
| Garmin Ltd. | 73,585 | 2,767,532 |
| Hasbro, Inc. | 68,732 | 5,126,720 |
| Leggett & Platt, Inc. | 86,298 | 3,833,357 |
| Mattel, Inc. | 207,169 | 4,853,970 |
| Tupperware Brands Corp. | 30,127 | 1,543,406 |
| 18,124,985 | ||
| Security | Number of Shares | Value ($) |
| Consumer Services 2.8% | ||
| Cracker Barrel Old Country Store, Inc. | 15,268 | 2,201,340 |
| Darden Restaurants, Inc. | 77,535 | 5,273,155 |
| H&R Block, Inc. | 172,112 | 5,855,250 |
| McDonald's Corp. | 594,078 | 56,449,292 |
| 69,779,037 | ||
| Diversified Financials 0.6% | ||
| Cohen & Steers, Inc. | 10,020 | 300,399 |
| Federated Investors, Inc., Class B | 58,709 | 1,819,979 |
| T. Rowe Price Group, Inc. | 161,200 | 11,587,056 |
| Waddell & Reed Financial, Inc., Class A | 51,641 | 2,017,614 |
| 15,725,048 | ||
| Energy 11.7% | ||
| Chevron Corp. | 1,162,182 | 94,125,120 |
| ConocoPhillips | 761,252 | 37,415,536 |
| Exxon Mobil Corp. | 1,427,801 | 107,427,747 |
| Helmerich & Payne, Inc. | 66,214 | 3,907,288 |
| HollyFrontier Corp. | 122,372 | 5,734,352 |
| ONEOK, Inc. | 127,368 | 4,586,522 |
| RPC, Inc. | 37,499 | 435,738 |
| The Williams Cos., Inc. | 415,553 | 20,029,655 |
| Valero Energy Corp. | 319,021 | 18,930,706 |
| 292,592,664 | ||
| Food & Staples Retailing 3.1% | ||
| Sysco Corp. | 366,658 | 14,618,655 |
| Wal-Mart Stores, Inc. | 976,388 | 63,201,595 |
| 77,820,250 | ||
| Food, Beverage & Tobacco 12.1% | ||
| Altria Group, Inc. | 1,218,342 | 65,278,764 |
| B&G Foods, Inc. | 34,593 | 1,051,281 |
| Campbell Soup Co. | 108,384 | 5,201,348 |
| Flowers Foods, Inc. | 112,566 | 2,612,657 |
| General Mills, Inc. | 373,713 | 21,211,950 |
| Kellogg Co. | 155,261 | 10,290,699 |
| PepsiCo, Inc. | 916,705 | 85,189,396 |
| Reynolds American, Inc. | 190,519 | 15,955,966 |
| The Coca-Cola Co. | 2,430,552 | 95,569,305 |
| 302,361,366 | ||
| Health Care Equipment & Services 0.8% | ||
| Baxter International, Inc. | 334,212 | 12,850,452 |
| Computer Programs & Systems, Inc. | 7,553 | 347,589 |
| Meridian Bioscience, Inc. | 26,086 | 499,025 |
| Quest Diagnostics, Inc. | 89,485 | 6,067,083 |
| 19,764,149 | ||
| Household & Personal Products 7.0% | ||
| Colgate-Palmolive Co. | 528,393 | 33,188,364 |
| Kimberly-Clark Corp. | 225,733 | 24,047,337 |
See financial notes 61
Schwab U.S. Dividend Equity ETF
Portfolio Holdings continued
| Security | Number of Shares | Value ($) |
| The Clorox Co. | 80,760 | 8,978,089 |
| The Procter & Gamble Co. | 1,528,914 | 108,048,352 |
| 174,262,142 | ||
| Insurance 1.2% | ||
| Aflac, Inc. | 270,921 | 15,875,971 |
| Mercury General Corp. | 23,149 | 1,177,358 |
| PartnerRe Ltd. | 30,160 | 4,174,446 |
| Principal Financial Group, Inc. | 171,060 | 8,612,871 |
| Safety Insurance Group, Inc. | 8,687 | 456,762 |
| 30,297,408 | ||
| Materials 3.0% | ||
| Compass Minerals International, Inc. | 20,565 | 1,665,765 |
| E.I. du Pont de Nemours & Co. | 561,291 | 28,906,487 |
| International Paper Co. | 262,638 | 11,330,203 |
| Schweitzer-Mauduit International, Inc. | 18,869 | 666,642 |
| Sonoco Products Co. | 61,023 | 2,399,424 |
| The Dow Chemical Co. | 672,493 | 29,428,294 |
| 74,396,815 | ||
| Media 0.6% | ||
| Meredith Corp. | 22,076 | 1,042,428 |
| Omnicom Group, Inc. | 152,761 | 10,231,932 |
| TEGNA, Inc. | 138,206 | 3,287,921 |
| 14,562,281 | ||
| Pharmaceuticals, Biotechnology & Life Sciences 11.2% | ||
| Eli Lilly & Co. | 604,935 | 49,816,397 |
| Johnson & Johnson | 1,229,374 | 115,536,568 |
| Pfizer, Inc. | 3,542,544 | 114,140,768 |
| 279,493,733 | ||
| Retailing 5.9% | ||
| American Eagle Outfitters, Inc. | 106,594 | 1,814,230 |
| Genuine Parts Co. | 94,510 | 7,890,640 |
| Staples, Inc. | 396,951 | 5,640,674 |
| Target Corp. | 393,129 | 30,550,054 |
| The Gap, Inc. | 162,174 | 5,320,929 |
| The Home Depot, Inc. | 815,107 | 94,927,361 |
| 146,143,888 | ||
| Semiconductors & Semiconductor Equipment 6.0% | ||
| Analog Devices, Inc. | 193,285 | 10,796,900 |
| Intel Corp. | 2,925,446 | 83,492,229 |
| Linear Technology Corp. | 152,362 | 6,137,141 |
| Maxim Integrated Products, Inc. | 175,917 | 5,923,125 |
| Microchip Technology, Inc. | 125,145 | 5,318,663 |
| Texas Instruments, Inc. | 645,320 | 30,872,109 |
| Xilinx, Inc. | 164,108 | 6,874,484 |
| 149,414,651 | ||
| Software & Services 10.9% | ||
| Accenture plc, Class A | 387,918 | 36,569,030 |
| Automatic Data Processing, Inc. | 293,190 | 22,669,451 |
| Security | Number of Shares | Value ($) |
| CA, Inc. | 199,969 | 5,457,154 |
| International Business Machines Corp. | 568,478 | 84,072,211 |
| Microsoft Corp. | 2,607,900 | 113,495,808 |
| Paychex, Inc. | 202,512 | 9,044,186 |
| 271,307,840 | ||
| Technology Hardware & Equipment 2.5% | ||
| Harris Corp. | 77,463 | 5,950,708 |
| QUALCOMM, Inc. | 1,019,371 | 57,676,011 |
| 63,626,719 | ||
| Telecommunication Services 4.7% | ||
| Verizon Communications, Inc. | 2,561,260 | 117,843,573 |
| Transportation 1.9% | ||
| C.H. Robinson Worldwide, Inc. | 88,922 | 5,996,011 |
| United Parcel Service, Inc., Class B | 430,162 | 42,005,319 |
| 48,001,330 | ||
| Utilities 0.5% | ||
| Alliant Energy Corp. | 69,116 | 3,916,804 |
| Questar Corp. | 107,147 | 2,069,008 |
| WEC Energy Group, Inc. | 140,615 | 6,700,305 |
| 12,686,117 | ||
| Total Common Stock | ||
| (Cost $2,594,120,757) | 2,487,882,717 | |
| Other Investment Companies 0.0% of net assets | ||
| Equity Fund 0.0% | ||
| Vanguard Dividend Appreciation ETF | 7,500 | 566,775 |
| Money Market Fund 0.0% | ||
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (a) | 281,867 | 281,867 |
| Total Other Investment Companies | ||
| (Cost $839,284) | 848,642 | |
End of Investments
At 08/31/15, the tax basis cost of the fund's investments was $2,595,093,098 and the unrealized appreciation and depreciation were $97,641,336 and ($204,003,075), respectively, with a net unrealized depreciation of ($106,361,739).
| (a) | The rate shown is the 7-day yield. |
| ETF — | Exchange Traded Fund |
62 See financial notes
Table of Contents
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of:
Schwab U.S. Broad Market ETF
Schwab U.S. Large-Cap ETF
Schwab U.S. Large-Cap Growth ETF
Schwab U.S. Large-Cap Value ETF
Schwab U.S. Mid-Cap ETF
Schwab U.S. Small-Cap ETF
Schwab U.S. Dividend Equity ETF
Schwab International Equity ETF
Schwab International Small-Cap Equity ETF
Schwab Emerging Markets Equity ETF
In our opinion, the accompanying statements of assets and liabilities, including the condensed portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights (included in Item 1 of this Form N-CSR) and the portfolio holdings (included in Item 6 of this Form N-CSR) present fairly, in all material respects, the financial position of Schwab U.S. Broad Market ETF, Schwab U.S. Large-Cap ETF, Schwab U.S. Large-Cap Growth ETF, Schwab U.S. Large-Cap Value ETF, Schwab U.S. Mid-Cap ETF, Schwab U.S. Small-Cap ETF, Schwab U.S. Dividend Equity ETF, Schwab International Equity ETF, Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF (ten of the funds constituting Schwab Strategic Trust, hereafter referred to as the “Funds”) at August 31, 2015, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements, financial highlights and portfolio holdings (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
October 16, 2015
| PricewaterhouseCoopers LLP, Three Embarcadero Center, San Francisco, CA 94111-4004 | ||
| T: (415) 498 5000, F: (415) 498 7100, www.pwc.com/us | ||
Table of Contents
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
| (a) | Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, Marie Chandoha and Registrant’s Principal Financial Officer, George Pereira, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above. |
| (b) | During the second fiscal quarter of the period covered by this report, there have been no changes in Registrant’s internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting. |
Item 12: Exhibits.
(a) | (1) | Registrant’s code of ethics (that is the subject of the disclosure required by Item 2(a)) is attached. |
| (2) | Separate certifications for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the 1940 Act, are attached. |
| (3) | Not applicable. |
Table of Contents
| (b) | A certification for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, is attached. This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. section 1350 and is not being filed as part of the Form N-CSR with the Commission. |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| (Registrant ) Schwab Strategic Trust | ||
| By: | /s/ Marie Chandoha | |
| Marie Chandoha | ||
| Chief Executive Officer | ||
| Date: | October 14, 2015 | |
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 14, 2015 | |
| By: | /s/ George Pereira | |
| George Pereira | ||
| Principal Financial Officer | ||
| Date: | October 12, 2015 | |