SECURITIES AND EXCHANGE COMMISSION
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-22311
Schwab Strategic Trust – Schwab U.S. Equity ETFs,
Schwab International Equity ETFs and Schwab High
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Schwab Strategic Trust – Schwab U.S. Equity ETFs, Schwab International Equity ETFs and Schwab High Yield Bond ETF
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, 2024
Item 1: Report(s) to Shareholders.
Schwab International Dividend Equity ETF
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This annual shareholder report contains important information about the fund for the period of September 1, 2023, to August 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and othe
r i
nformation about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab International Dividend Equity ETF | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended August 31, 2024, the fund’s market price return was 15.53% and its NAV return was
15.55% (for an explanation of the market price and NAV returns, please refer to footnote 3 on the following page). The MSCI EAFE
®
Index (Net), which serves at the fund’s regulatory index and provides a broad measure of market performance, returned 19.40%
1
.
The fund generally invests in securities that are included in the Dow Jones International Dividend 100 Index (Net) which returned
15.81%
1
during the same period. The fund does not seek to track the regulatory index. Differences between the return of the fund
and the return of the Dow Jones International Dividend 100 Index (Net) may be attributable to, among other things, the operational
and transactional costs incurred by the fund and not the index.
Top detractors from total return:
■
Indonesian securities, including Class B holdings of Telkom Indonesia Persero Tbk. PT
Top contributors to total return:
■
Securities from the United King
do
m, including Unilever PLC
Portfolio holdings may have changed since the report date.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
Schwab International Dividend Equity ETF | Annual
Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will
fluct
uate 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 data quoted.
o obtain performance information
current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectu
Performance of Hypothetical $10,000 Investment (April 29, 2021 - August 31, 2024)
Average Annual Total Returns
| | |
Fund: Schwab International Dividend Equity ETF (04/29/2021) |
| | |
| | |
| | |
Dow Jones International Dividend 100 Index (Net) 4 | | |
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 www.schwabassetmanagement.com/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 fluctuations 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.
The fund may underperform other funds that do not limit their investment to dividend paying stocks. Stocks held by the fund may reduce or stop paying dividends, affecting
the fund’s ability to generate income. Diversification strategies do not ensure a profit and do not protect against losses in declining markets.
Index ownership — Dow Jones
®
is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). The Dow Jones International Dividend 100 Index is a product of
S&P Dow Jones Indices LLC and/or its affiliates, and has been licensed for use by Charles Schwab Investment Management, Inc., dba Schwab Asset Management. The
Schwab International 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 (04/29/2021) represents the date that the shares began trading in the secondary market.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.
ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking
the fund’s total assets (including the fair 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
using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded
at other times. 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.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Dow Jones International Dividend 100 Index (Net) to the MSCI EAFE
®
I
ndex
(Net). The MSCI EAFE
®
Index (Net) provides a broad measure of market performance. The fund generally invests in securities that are included in the Dow Jones
Internatio
nal
Dividend 100 Index (Net). The fund does not seek to track the regulatory index.
Schwab International Dividend Equity ETF | Annual Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Foreign Tax Paid and Passed Through | |
Gross Income from Foreign Sources | |
Qualified Dividend Income | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
Country Weightings % of Investments
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.
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI 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.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
This list is not a recommendation of any security by the investment adviser.
Schwab International Dividend Equity ETF | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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.schwabassetmanagement.com/prospectus
, the
SEC’s website at
, or by contacting Schwab ETFs at 1-877-824-5615.
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.schwabassetmanagement.com/prospectus
or the
SEC’s website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab International Dividend Equity ETF | Annual Report
Schwab International Equity ETF
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This annual shareholder report contains important information about the fund for the period of September 1, 2023, to August 31, 2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
.
You can also request this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and oth
er i
nformation about the fund are available from your financial intermediary.
This report describes changes to the fund that occurred during the reporting period.
FUND COSTS FOR THE LAST year ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab International Equity ETF | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended August 31, 2024, the fund’s market price return was 19.03% and its NAV return was
18.90% (for an explanation of the market price and NAV returns, please refer to footnote 3 on the following page). The MSCI EAFE
®
Index (Net), which serves at the fund’s regulatory index and provides a broad measure of market performance, returned 19.40%
1
.
The fund generally invests in securities that are included in the FTSE Developed ex US Index (Net) which returned 18.72%
1
during
the same period. The fund does not seek to track the regulatory index.
Top contributors to total return:
■
Japanese securities, including Hitachi Ltd.
■
Securities from the United Kingdom
Top detractors from total return:
■
Securities from Hong Kong, including AIA Group Ltd.
■
While there were no additional markets that detracted from the total return of the fund, Portuguese securities were the smallest
contributors to total return
Portfolio holdings may have changed since the report date.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other
taxes.
Schwab International Equity ETF | Annual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns
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 data quoted.
To obtain performance information
current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
Performance of Hypothetical $10,000 Investment (August 31, 2014 -
August 31,
2024)
Average Annual Total Returns
| | | |
Fund: Schwab International Equity ETF (11/03/2009) |
| | | |
| | | |
| | | |
FTSE Developed ex US Index (Net) 4 | | | |
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 www.schwabassetmanagement.com/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 fluctuations 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 FTSE nor LSEG and neither FTSE nor LSEG makes any representation regarding the advisability of investing in shares of the
fund. Fees payable under the license are paid by the investment adviser.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.
ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking
the fund’s total assets (including the fair 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
using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded
at other times. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the FTSE Developed ex US Index (Net) to the MSCI EAFE
®
MSCI EAFE
®
Index (Net) provides a broad measure of market performance. The fund generally invests in securities that are included in the FTSE Developed ex US In
dex
(Net). The fund does not seek to track the regulatory
index.
Schwab International Equity ETF | Annual Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Foreign Tax Paid and Passed Through | |
Gross Income from Foreign Sources | |
Qualified Dividend Income | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
Country Weightings % of Investments
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.
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI 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.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
This list is not a recommendation of any security by the investment adviser.
Schwab International Equity ETF | Annual Report
This is a summary of certain changes to the fund since September 1, 2023. For more complete information, you may review the fund’s
Annual Holdings and Financial Statements
at
www.schwabassetmanagement.com/prospectus
or upon request by calling
or by sending
an email request to
orders@mysummaryprospectus.com
.
■
On September 25, 2024, the Board of Trustees authorized a 2-for-1 share split for the fund, which applied to shareholders of
record as of the close of U.S. markets on October 9, 2024. Certain of the fund’s financial statements were retroactively adjusted for
the period ended August 31, 2024, and all prior periods, to reflect the share split.
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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.schwabassetmanagement.com/prospectus
, the SEC’s
website at
, or by contacting Schwab ETFs at 1-877-824-5615.
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.schwabassetmanagement.com/prospectus
or the SEC’s
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab International Equity ETF | Annual Report
Schwab International Small-Cap Equity ETF
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This annual shareholder report contains important information about the fund for the period of September 1, 2023, to August 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
.
You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab International Small-Cap Equity ETF | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended August 31, 2024, the fund’s market price return was 14.12% and its NAV return was
14.46% (for an explanation of the market price and NAV returns, please refer to footnote 3 on the following page). The MSCI EAFE
®
Index (Net), which serves at the fund’s regulatory index and provides a broad measure of market performance, returned 19.40%
1
.
The fund generally invests in securities that are included in the FTSE Developed Small Cap ex US Liquid Index (Net) which returned
14.29%
1
during the same period. The fund does not seek to track the regulatory index.
Top contributors to total return:
■
Securities from the United Kingdom, including Vistry Group
PLC
Top detractors from total return:
■
South Korean securities, including Ecopro Co
.
Ltd.
Portfolio holdings may have changed since the report date.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other ta
xes.
Schwab International Small-Cap Equity ETF | Annual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns
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 data quoted.
To obtain performance information
current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
Performance of Hypothetical $10,000 Investment (August 31, 2014 - August 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab International Small-Cap Equity ETF (01/14/2010) |
| | | |
| | | |
| | | |
FTSE Developed Small Cap ex US Liquid Index (Net) 4 | | | |
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 www.schwabassetmanagement.com/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 fluctuations in currency values, from differences in generally accepted accounting principles, or from
economic or political instability in other nations.
Small-company stocks may be 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 FTSE nor LSEG and neither FTSE nor LSEG makes any representation regarding the advisability of investing in
shares of the fund. Fees payable under the license are paid by the investment adviser.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.
ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking
the fund’s total assets (including the fair 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
using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded
at other times. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the FTSE Developed Small Cap ex US Liquid Index (Net) to the MSCI EAFE
®
Index (Net). The MSCI EAFE
®
Index (Net) provides a broad measure of market performance. The fund generally invests in securities that are included in
the
FTSE Develo
ped
Small Cap ex US Liquid Index (Net). The fund does not seek to track the regulatory in
dex.
Schwab International Small-Cap Equity ETF | Annual Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Foreign Tax Paid and Passed Through | |
Gross Income from Foreign Sources | |
Qualified Dividend Income | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
Country Weightings % of Investments
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.
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI 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.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
This list is not a recommendation of any security by the investment adviser.
Schwab International Small-Cap Equity ETF | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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.schwabassetmanagement.com/prospectus
, the
SEC’s website at
, or by contacting Schwab ETFs at 1-877-824-5615.
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.schwabassetmanagement.com/prospectus
or the
SEC’s website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab International Small-Cap Equity ETF | Annual Report
Schwab Emerging Markets Equity ETF
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This annual shareholder report contains important information about the fund for the period of September 1, 2023, to August 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab Emerging Markets Equity ETF | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended August 31, 2024, the fund’s market price return was 14.70% and its NAV return was
14.57% (for an explanation of the market price and NAV returns, please refer to footnote 3 on the following page). The MSCI
Emerging Markets Index (Net), which serves at the fund’s regulatory index and provides a broad measure of market performance,
returned 15.07%
1
. The fund generally invests in securities that are included in the FTSE Emerging Index (Net) which returned
16.04%
1
during the same period. The fund does not seek to track the regulatory index. Differences between the return of the fund
and the return of the FTSE Emerging Index (Net) may be attributable to, among other things, the trading and management costs
incurred by the fund and not the index.
Top detractors from total return:
■
Chinese securities, including Alibaba Group Holding Ltd.
Top contributors to total return:
■
Indian securities, including Reliance Industries Ltd.
Portfolio holdings may have changed since the report date.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses
or
other tax
es.
Schwab Emerging Markets Equity ETF | Annual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns
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 data quoted.
To obtain performance information
current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
Performance of Hypothetical $10,000 Investment (August 31, 2014 - August 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab Emerging Markets Equity ETF (01/14/2010) |
| | | |
| | | |
MSCI Emerging Markets Index (Net) 4,5 | | | |
FTSE Emerging Index (Net) 4 | | | |
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 www.schwabassetmanagement.com/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 fluctuations 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 FTSE nor LSEG and neither FTSE nor LSEG makes any representation regarding the advisability of investing in shares of
the fund. Fees payable under the license are paid by the investment adviser.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.
ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking
the fund’s total assets (including the fair 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
using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded
at other times. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the FTSE Emerging Index (Net) to the MSCI Emerging Markets Index (Net). The
MSCI Emerging Markets Index (Net) provi
des a bro
ad measure of market performance. The fund generally invests in securities that are included in the FTSE Emerging In
dex
(Net). The fund does not seek to track the regulatory index.
Schwab Emerging Markets Equity ETF | Annual Report
| |
| |
(exclu des in- kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Aver age Marke t Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Foreign Tax Paid and Passed T hroug h | |
Gr oss Incom e from Fore ign Sources | |
| |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
Country Weightings % of Investments
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.
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI 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.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
This list is not a recommendation of any security by the investment adviser.
Schwab Emerging Markets Equity ETF | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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.schwabassetmanagement.com/prospectus
, the
SEC’s website at
, or by contacting Schwab ETFs at 1-877-824-5615.
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.schwabassetmanagement.com/prospectus
or the
SEC’s website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Emerging Markets Equity ETF | Annual Report
Schwab U.S. Broad Market ETF
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This annual shareholder report contains important information about the fund for the period of September 1, 2023, to August 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
This report describes changes to the fund that occurred during the reporting period.
FUND COSTS FOR THE LAST year ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab U.S. Broad Market ETF | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended August 31, 2024, the fund’s market price return was 26.19% and its NAV return was
26.21% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The Dow Jones
U.S. Broad Stock Market Index returned 26.22% during the same period. Differences between the return of the fund and the return
of the Dow Jones U.S. Broad Stock Market Index may be attributable to, among other things, the operational and transactional
costs incurred by the fund and not the index.
Over the reporting period, no sectors detracted from the return of the fund. However, the smallest contributors to total return were:
■
Energy sector securities, including Chevron Corp. (which detracted from the total return of the fund)
■
Materials sector securities
Top contributors to total return:
■
Information technology sector securities, including NVIDIA Corp.
■
Financials sector securities
Portfolio holdings may have changed since the report date.
Schwab U.S. Broad Market ETF | Annual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment
returns
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 data quoted.
To obtain performance information current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
.
Performance of Hypothetical $10,000 Investment (August 31, 2014 - August 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab U.S. Broad Market ETF (11/03/2009) |
| | | |
| | | |
Dow Jones U.S. Broad Stock Market Index | | | |
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 www.schwabassetmanagement.com/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 Charles Schwab Investment Management, Inc., dba Schwab Asset Management. The
Schwab U.S. Broad Market 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.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking
the fund’s total assets (including the fair 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
using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded
at other times. Market Price and NAV returns assume that dividends and capital gain distributions have
been
reinvested
in the
fund
at Market Price and NAV, respectively.
Schwab U.S. Broad Market ETF | Annual Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Qualified Business Income Deduction (199A) | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
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.
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI 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.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
This list is not a recommendation of any security by the investment adviser.
Schwab U.S. Broad Market ETF | Annual Report
This is a summary of certain changes to the fund since September 1, 2023. For more complete information, you may review the fund’s
Annual Holdings and Financial Statements
at
www.schwabassetmanagement.com/prospectus
or upon request by calling
an email request to
orders@mysummaryprospectus.com
.
■
On September 25, 2024, the Board of Trustees authorized a 3-for-1 share split for the fund, which applied to shareholders of
record as of the close of U.S. markets on October 9, 2024. Certain of the fund’s financial statements were retroactively adjusted for
the period ended August 31, 2024, and all prior periods, to reflect the share split.
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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.schwabassetmanagement.com/prospectus
, the SEC’s
website at
, or by contacting Schwab ETFs at 1-877-824-5615.
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.schwabassetmanagement.com/prospectus
or the SEC’s
website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab U.S. Broad Market ETF | Annual Report
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This annual shareholder report contains important information about the fund for the period of September 1, 2023, to August 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
This report describes changes to the fund that occurred during the reporting period.
FUND COSTS FOR THE LAST year ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended August 31, 2024, the fund’s market price return was 26.62% and its NAV return was
26.68% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The Russell
1000
®
Index, which serves as the fund’s regulatory index and provides a broad measure of market performance, returned 26.60%.
The fund generally invests in securities that are included in the Schwab 1000 Index
®
which returned 26.69% during the same
period. The fund does not seek to track the regulatory index. Differences between the return of the fund and the return of the
Schwab 1000 Index
®
may be attributable to, among other things, the operational and transactional costs incurred by the fund and
not the index.
Over the reporting period, no sectors detracted from the return of the fund. However, the smallest contributors to total return were:
■
Energy sector securities, including Chevron Corp. (which detracted from the total return of the fund)
■
Materials sector securities
Top contributors to total return:
■
Information technology sector securities, including NVIDIA Corp.
■
Financials sector securities
Portfolio holdings may have changed since the report date.
Schwab 1000 Index
®
ETF | Annual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns
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 data quoted.
To obtain performance information
current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
Performance of Hypothetical $10,000 Investment (October 11, 2017 - August 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab 1000 Index ETF (10/11/2017) |
| | | |
| | | |
| | | |
| | | |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower
performa
nce.
Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see www.schwabassetmanagement.com/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.
Inception (10/11/2017) represents the date that the shares began trading in the secondary market.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking
the fund’s total assets (including the fair 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
using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded
at other times. 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.
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Schwab 1000 Index
®
to the Russell 1000
®
Index. The Russell 1000
®
Index
provides a broad measure of market performance. The fund generally invests in securities that are included in the Schwab 1000 Index
®
. The fund does not seek to track the
regulatory index.
A float-adjusted market capitalization weighted index developed by Charles Schwab & Co., Inc. that represents the
performance
of the largest 1,000 publicly traded
companies in the United States. As a result of corporate actions, the index may be comprised of more or less than 1,000 securities.
Schwab 1000 Index
®
ETF | Annual Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Qualified Business Income Deduction (199A) | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
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.
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI 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.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
This list is not a recommendation of any security by the investment adviser.
Schwab 1000 Index
®
ETF | Annual Report
This is a summary of certain changes to the fund since September 1, 2023. For more complete information, you may review the fund’s
Annual Holdings and Financial Statements
at
www.schwabassetmanagement.com/prospectus
or upon request by calling
or by sending
an email request to
orders@mysummaryprospectus.com
.
■
On September 25, 2024, the Board of Trustees authorized a 2-for-1 share split for the fund, which applied to shareholders of
record as of the close of U.S. markets on October 9, 2024. Certain of the fund’s financial statements were retroactively adjusted for
the period ended August 31, 2024, and all prior periods, to reflect the share split.
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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.schwabassetmanagement.com/prospectus
, the SEC’s
website at
, or by contacting Schwab ETFs at 1-877-824-5615.
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.schwabassetmanagement.com/prospectus
or the SEC’s
website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab 1000 Index
®
ETF | Annual Report
Schwab U.S. Large-Cap ETF
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This annual shareholder report contains important information about the fund for the period of September 1, 2023, to August 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
This report describes changes to the fund that occurred during the reporting period.
FUND COSTS FOR THE LAST year ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab U.S. Large-Cap ETF | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended August 31, 2024, the fund’s market price return was 26.91% and its NAV return was
26.95% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The S&P 500
®
Index, which serves at the fund’s regulatory index and provides a broad measure of market performance, returned 27.14%. The fund
generally invests in securities that are included in the Dow Jones U.S. Large-Cap Total Stock Market Index which returned 26.95%
during the same period. The fund does not seek to track the regulatory index.
Top contributors to total return:
■
Information technology sector securities, including NVIDIA Corp.
■
Financials sector securities
Over the reporting period, no sectors detracted from the return of the fund. However, the smallest contributors to total return were:
■
Energy sector securities, including Chevron Corp. (which detracted from the total return of the fund)
■
Materials sector securities
Portfolio holdings may have changed since the report date.
Schwab U.S. Large-Cap ETF | Annual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns
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 data quoted.
To obtain performance information
current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
Performance of Hypothetical $10,000 Investment (August 31, 2014 - August 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab U.S. Large-Cap ETF (11/03/2009) |
| | | |
| | | |
| | | |
Dow Jones U.S. Large-Cap Total Stock Market Index | | | |
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 www.schwabassetmanagement.com/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 Charles Schwab Investment Management, Inc., dba Schwab Asset Management.
The Schwab U.S. Large-Cap 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.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking
the fund’s total assets (including the fair 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
using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded
at other times. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Dow Jones U.S. Large-Cap Total Stock Market Index to the S&P 500
®
Index. The S&P 500
®
Index provides a broad measure of market performance. The fund generally invests in securities that are included in the Dow Jones U.S. Large-Cap
Total Stock Market Index. The fund does not seek to track the regulatory index.
Schwab U.S. Large-Cap ETF | Annual Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Qualified Business Income Deduction (199A) | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
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.
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI 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.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
This list is not a recommendation of any security by the investment adviser.
Schwab U.S. Large-Cap ETF | Annual Report
This is a summary of certain changes to the fund since S
ep
tember 1, 2023.
For more complete information, you may review the
fund’s prospectus at
www.schwabassetmanagement.com/prospectus
or upon request by calling
or by sending
an email request to
orders@mysummaryprospectus.com
.
■
Effective August 23, 2024, the fund revised its diversification policy under the Investment Company Act of 1940, as amended.
Under the revised policy, the fund will continue to track its benchmark index even if the fund becomes non-diversified as a result of
a change in relative market capitalization or index weighting of one or more constituents of the index. Shareholder approval will not
be sought if the fund crosses from diversified to non-diversified status under such circumstances.
For more complete information, you may review the fund’s Annual Holdings and Financial Statements at
www.schwabassetmanagement.com/prospectus
or upon request by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
■
On September 25, 2024, the Board of Trustees authorized a 3-for-1 share split for the fund, which applied to shareholders of
record as of the close of U.S. markets on October 9, 2024. Certain of the fund’s financial statements were retroactively adjusted for
the period ended August 31, 2024, and all prior periods, to reflect the share split.
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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.schwabassetmanagement.com/prospectus
, the SEC’s
website at
, or by contacting Schwab ETFs at 1-877-824-5615.
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.schwabassetmanagement.com/prospectus
or the SEC’s
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab U.S. Large-Cap ETF | Annual Report
Schwab U.S. Large-Cap Growth ETF
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This annual shareholder report contains important information about the fund for the period of September 1, 2023, to August 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
This report describes changes to the fund that occurred during the reporting period.
FUND COSTS FOR THE LAST year ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab U.S. Large-Cap Growth ETF | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended August 31, 2024, the fund’s market price return was 32.87% and its NAV return was
32.95% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The S&P 500
®
Index, which serves at the fund’s regulatory index and provides a broad measure of market performance, returned 27.14%. The fund
generally invests in securities that are included in the Dow Jones U.S. Large-Cap Growth Total Stock Market Index which returned
32.94% during the same period. The fund does not seek to track the regulatory index.
Top contributors to total return:
■
Information technology sector securities, including NVIDIA Corp.
■
Communication services sector securities
Over the reporting period, no sectors detracted from the return of the fund. However, the smallest contributors to total return were:
■
Real estate sector securities, including CoStar Group, Inc. (which detracted from the total return of the fund)
■
Energy sector securities
Portfolio holdings may have changed since the report date.
Schwab U.S. Large-Cap Growth ETF | Annual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns 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 data quoted.
To obtain performance information
current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
.
Performance of Hypothetical $10,000 Investment (August 31, 2014 - August 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab U.S. Large-Cap Growth ETF (12/11/2009) |
| | | |
| | | |
| | | |
Dow Jones U.S. Large-Cap Growth Total Stock Market Index | | | |
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 www.schwabassetmanagement.com/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 Charles Schwab Investment Management, Inc., dba Schwab Asset
Management. 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.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking
the fund’s total assets (including the fair 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
using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded
at other times. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Dow Jones U.S. Large-Cap Growth Total Stock Market Index to the S&P
500
®
Index. The S&P 500
®
Index provides a broad measure of market performance. The fund generally invests in securities that are
included
in the Dow Jones
U.S. Large-Cap Growth Total Stock Market Index. The fund does not seek to track the regulatory index.
Schwab U.S. Large-Cap Growth ETF | Annual Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Avera ge Marke t Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Di vidend I ncome | |
Top Equity Holdings % of Net
Portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial
market or sec
tor. 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.
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI 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., I
nc
.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amen
ded.
Amount is less than 0.05%.
This list is not a recommendation of any security by the investment adviser.
Schwab U.S. Large-Cap Growth ETF | Annual Report
This is a summary of certain changes to the fund since September 1, 2023. For more complete information, you may review the fund’s
Annual Holdings and Financial Statements
at
www.schwabassetmanagement.com/prospectus
or upon request by calling
or by sending
an email request to
orders@mysummaryprospectus.com
.
■
On September 25, 2024, the Board of Trustees authorized a 4-for-1 share split for the fund, which applied to shareholders of
record as of the close of U.S. markets on October 9, 2024. Certain of the fund’s financial statements were retroactively adjusted for
the period ended August 31, 2024, and all prior periods, to reflect the share split.
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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.schwabassetmanagement.com/prospectus
, the SEC’s
website at
, or by contacting Schwab ETFs at 1-877-824-5615.
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.schwabassetmanagement.com/prospectus
or the SEC’s
website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab U.S. Large-Cap Growth ETF | Annual Report
Schwab U.S. Large-Cap Value ETF
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This annual shareholder report contains important information about the fund for the period of September 1, 2023, to August 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
This report describes changes to the fund that occurred during the reporting period.
FUND COSTS FOR THE LAST year ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab U.S. Large-Cap Value ETF | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ending August 31, 2024, the fund’s market price return was 20.44% and its NAV return was
20.56% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The S&P 500
®
Index, which serves at the fund’s regulatory index and provides a broad measure of market performance, returned 27.14%. The fund
generally invests in securities that are included in the Dow Jones U.S. Large-Cap Value Total Stock Market Index which returned
20.60% during the same period. The fund does not seek to track the regulatory index. Differences between the return of the fund
and the return of the Dow Jones U.S. Large-Cap Value Total Stock Market Index may be attributable to, among other things, the
operational and transactional costs incurred by the fund and not the index.
Over the reporting period, no sectors detracted from the return of the fund. However, the smallest contributors to total return were:
■
Energy sector securities, including Chevron Corp. (which detracted from the total return of the fund)
■
Materials sector securities
Top contributors to total return:
■
Financials sector securities, including JPMorgan Chase & Co.
■
Industrials sector securities
Portfolio holdings may have changed since the report date.
Schwab U.S. Large-Cap Value ETF | Annual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns
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 data quoted.
To obtain performance information
current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
Performance of Hypothetical $10,000 Investment (August 31, 2014 - August 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab U.S. Large-Cap Value ETF (12/11/2009) |
| | | |
| | | |
| | | |
Dow Jones U.S. Large-Cap Value Total Stock Market Index | | | |
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 www.schwabassetmanagement.com/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 Charles Schwab Investment Management, Inc., dba Schwab Asset
Management. The Schwab U.S. Large-Cap Value 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.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking
the fund’s total assets (including the fair 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
using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded
at other times. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Dow Jones U.S. Large-Cap Value Total Stock Market Index to the S&P 500
®
Index. The S&P 500
®
Index provides a broad measure of market performance. The fund generally invests in securities that are included in the Dow Jones U.S. Large-Cap
Value Total Stock Market Index. The fund does not seek to track the regulatory index.
Schwab U.S. Large-Cap Value ETF | Annual Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Av erage Ma rket Cap (m illions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Rec eived D eduction | |
Qualified Dividend Income | |
Qualified Business Inco me Ded uction (199A) | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
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.
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI 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.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
This list is not a recommendation of any security by the investment adviser.
Schwab U.S. Large-Cap Value ETF | Annual Report
This is a summary of certain changes to the fund since
September 1, 2023
. For more complete information, you may review the fund’s
Annual Holdings and Financial Statements
at
www.schwabassetmanagement.com/prospectus
or upon request by calling
or by sending
an email request to
orders@mysummaryprospectus.com
.
■
On September 25, 2024, the Board of Trustees authorized a 3-for-1 share split for the fund, which applied to shareholders of
record as of the close of U.S. markets on October 9, 2024. Certain of the fund’s financial statements were retroactively adjusted for
the period ended August 31, 2024, and all prior periods, to reflect the share split.
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other informatio
n abo
ut the fund online at
www.schwabassetmanagement.com/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.schwabassetmanagement.com/prospectus
, the SEC’s
website at
, or by contacting Schwab ETFs at 1-877-824-5615.
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.schwabassetmanagement.com/prospectus
or the SEC’s
website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab U.S. Large-Cap Value ETF | Annual Report
Schwab U.S. Mid-Cap ETF
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This annual shareholder report contains important information about the fund for the period of September 1, 2023, to August 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
This report describes changes to the fund that occurred during the reporting period.
FUND COSTS FOR THE LAST year ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended August 31, 2024, the fund’s market price return was 15.59% and its NAV return was
15.63% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The S&P 500
®
Index, which serves at the fund’s regulatory index and provides a broad measure of market performance, returned 27.14%. The fund
generally invests in securities that are included in the Dow Jones U.S. Mid-Cap Total Stock Market Index which returned 15.68%
during the same period. The fund does not seek to track the regulatory index. Differences between the return of the fund and the
return of the Dow Jones U.S. Mid-Cap Total Stock Market Index may be attributable to, among other things, the operational and
transactional costs incurred by the fund and not the index.
Top detractors from total return:
■
Energy sector securities, including APA Corp.
■
While there were no additional sectors that detracted from the total return of the fund, securities in the consumer staples sector
were the smallest contributors to total return
Top contributors to total return:
■
Financials sector securities, including Cboe Global Markets, Inc.
■
Industrials sector securities
Portfolio holdings may have changed since the report date.
Schwab U.S. Mid-Cap ETF | Annual Report
The performance data quoted represents past performance.
Past performance does not guarantee future results.
Investment
returns
and principal value of an investment will fluctu
a
te 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 data quoted.
To obtain performance information
current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
Performance of Hypothetical $
10,
000 Investment (August 31, 2014 -
Aug
ust 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab U.S. Mid-Cap ETF (01/13/2011) |
| | | |
| | | |
| | | |
Dow Jones U.S. Mid-Cap Total Stock Market Index | | | |
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 www.schwabassetmanagement.com/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 Charles Schwab Investment Management, Inc., dba Schwab Asset Management.
The Schwab U.S. Mid-Cap 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.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking
the fund’s total assets (including the fair 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
using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded
at other times. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Dow Jones U.S. Mid-Cap Total Stock Market Index to the S&P 500
®
Index.
The S&P 500
®
Index provides a broad measure of market performance. The fund generally invests in securities that are included in the Dow Jones U.S. Mid-Cap Total Stock
Market Index. The fund does not seek to track the regulatory index.
Schwab U.S. Mid-Cap ETF | Annual Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Qualified Business Income Dedu ction (199A) | |
Sector Weightings % of Investments
Top
Equity
Holdings %
of
Net
As
sets
Portfolio holdings may
ha
ve 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.
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI 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.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
This list is not a recommendation of any security by the investment adviser.
Schwab U.S. Mid-Cap ETF | Annual Report
This is a summary of certain changes to the fund since September 1, 2023. For more complete information, you may review the fund’s
Annual Holdings and Financial Statements
at
www.schwabassetmanagement.com/prospectus
or upon request by calling
or by sending
an email request to
orders@mysummaryprospectus.com
.
■
On September 25, 2024, the Board of Trustees authorized a 3-for-1 share split for the fund, which applied to shareholders of
record as of the close of U.S. markets on October 9, 2024. Certain of the fund’s financial statements were retroactively adjusted for
the period ended August 31, 2024, and all prior periods, to reflect the share split.
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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.schwabassetmanagement.com/prospectus
, the SEC’s
website at
, or by contacting Schwab ETFs at 1-877-824-5615.
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.schwabassetmanagement.com/prospectus
or the SEC’s
website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab U.S. Mid-Cap ETF | Annual Report
Schwab U.S. Small-Cap ETF
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This annual shareholder report contains important information about the fund for the period of September 1, 2023, to August 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
This report describes changes to the fund that occurred during the reporting period.
FUND COSTS FOR THE LAST year ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab U.S. Small-Cap ETF | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended August 31, 2024, the fund’s market price return was 17.31% and its NAV return was
17.29% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The S&P 500
®
Index, which serves at the fund’s regulatory index and provides a broad measure of market performance, returned 27.14%. The fund
generally invests in securities that are included in the Dow Jones U.S. Small-Cap Total Stock Market Index which returned 17.24%
during the same period. The fund does not seek to track the regulatory index.
Top contributors to total return:
■
Financials sector securities, including Class A holdings of Affirm Holdings, Inc.
■
Industrials sector securities
Top detractors from total return:
■
Energy sector stocks, including Transocean Ltd.
■
While there were no additional sectors that detracted from the total return of the fund, securities in the utilities sector were the
smallest contributors to total return
Portfolio holdings may have changed since the report date.
Schwab U.S. Small-Cap ETF | Annual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns
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 data quoted.
To obtain performance information
current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
Performance of Hypothetical $10,000 Investment (August 31, 2014 - August 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab U.S. Small-Cap ETF (11/03/2009) |
| | | |
| | | |
| | | |
Dow Jones U.S. Small-Cap Total Stock Market Index | | | |
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 www.schwabassetmanagement.com/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 may be 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 Charles Schwab Investment Management, Inc., dba Schwab Asset Management.
The Schwab U.S. Small-Cap 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.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking
the fund’s total assets (including the fair 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
using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded
at other times. Market Price and NAV
returns
assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Dow Jones U.S. Small-Cap Total Stock Market Index to the S&P 500
®
Index. The S&P 500
®
Index provides a broad measure of market performance. The fund generally invests in securities that are included in the Dow Jones U.S. Small-Cap
Total Stock Market Index. The fund does not seek to track the regulatory
inde
x.
Schwab U.S. Small-Cap ETF | Annual Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Qualified Business Income Deduction (199A) | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
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.
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI 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.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
This list is not a recommendation of any security by the investment adviser.
Schwab U.S. Small-Cap ETF | Annual Report
This is a summary of certain changes to the fund since September 1, 2023. For more complete information, you may review the fund’s
Annual Holdings and Financial Statements
at
www.schwabassetmanagement.com/prospectus
or upon request by calling
or by sending
an email request to
orders@mysummaryprospectus.com
.
■
On September 25, 2024, the Board of Trustees authorized a 2-for-1 share split for the fund, which applied to shareholders of
record as of the close of U.S. markets on October 9, 2024. Certain of the fund’s financial statements were retroactively adjusted for
the period ended August 31, 2024, and all prior periods, to reflect the share split.
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial
information
,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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.schwabassetmanagement.com/prospectus
, the SEC’s
website at
, or by contacting Schwab ETFs at 1-877-824-5615.
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.schwabassetmanagement.com/prospectus
or the SEC’s
website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab U.S. Small-Cap ETF | Annual Report
Schwab U.S. Dividend Equity ETF
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This annual shareholder report contains important information about the fund for the period of September 1, 2023, to August 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
This report describes changes to the fund that occurred during the reporting period.
FUND COSTS FOR THE LAST year ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab U.S. Dividend Equity ETF | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended August 31, 2024, the fund’s market price return was 17.75% and its NAV return was
17.72% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The S&P 500
®
Index, which serves at the fund’s regulatory index and provides a broad measure of market performance, returned 27.14%. The fund
generally invests in securities that are included in the Dow Jones U.S. Dividend 100
TM
Index which returned 17.81% during the
same period. The fund does not seek to track the regulatory index. Differences between the return of the fund and the return of the
Dow Jones U.S. Dividend 100
TM
Index may be attributable to, among other things, the operational and transactional costs incurred
by the fund and not the index.
Over the reporting period, no sectors detracted from the return of the fund. However, the smallest contributors to total return were:
■
Materials sector securities, including Newmont Corp. (which detracted from the total return of the fund and was sold prior to the
end of the reporting period)
■
Utilities sector securities
Top contributors to total return:
■
Financials sector securities, including BlackRock, Inc.
■
Health care sector securities
Portfolio holdings may have changed since the report date.
Schwab U.S. Dividend Equity ETF | Annual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns
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 data
quoted
.
To obtain performance information
current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
Performance of Hypothetical $10,000 Investment (August 31, 2014 - August 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab U.S. Dividend Equity ETF (10/20/2011) |
| | | |
| | | |
| | | |
Dow Jones U.S. Dividend 100 TM Index | | | |
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 www.schwabassetmanagement.com/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.
The fund may underperform other funds that do not limit their investment to dividend paying stocks. Stocks held by the fund may reduce or stop paying dividends, affecting
the fund’s ability to generate income. Diversification strategies do not ensure a profit and do not protect against losses in declining markets.
Index ownership — Dow Jones
®
is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). The Dow Jones U.S. Dividend 100
TM
Index is a product of S&P
Dow Jones Indices LLC and/or its affiliates, and has been licensed for use by Charles Schwab Investment Management, Inc., dba Schwab Asset Management. 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.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking
the fund’s total assets (including the fair 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
using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded
at other times. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Dow Jones U.S. Dividend 100™ Index to the S&P 500
®
Index. The S&P
500
®
Index provides a broad measure of market performance. The fund generally invests in securities that are included in the Dow J
on
es U.S. Dividend 100™ Index. The
fund does not seek to track the
regulatory
index.
Schwab U.S. Dividend Equity ETF | Annual Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
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.
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI 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.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Amount is less than 0.05%.
This list is not a recommendation of any security by the investment adviser.
Schwab U.S. Dividend Equity ETF | Annual Report
This is a summary of certain changes to the fund since September 1, 2023. For more complete
information
, you may review the fund’s
Annual Holdings and Financial Statements
at
www.schwabassetmanagement.com/prospectus
or upon request by calling
or by sending
an email request to
orders@mysummaryprospectus.com
.
■
On September 25, 2024, the Board of Trustees authorized a 3-for-1 share split for the fund, which applied to shareholders of
record as of the close of U.S. markets on October 9, 2024. Certain of the fund’s financial statements were retroactively adjusted for
the period ended August 31, 2024, and all prior periods, to reflect the share split.
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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.schwabassetmanagement.com/prospectus
, the SEC’s
website at
, or by contacting Schwab ETFs at 1-877-824-5615.
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.schwabassetmanagement.com/prospectus
or the SEC’s
website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab U.S. Dividend Equity ETF | Annual Report
Schwab High Yield Bond ETF
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This annual shareholder report contains important information about the fund for the period of September 1, 2023, to August 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
This report describes changes to the fund that occurred during the reporting period.
FUND COSTS FOR THE LAST year ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab High Yield Bond ETF | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended August 31, 2024, the fund’s market price return was 12.13% and its NAV return was
11.95% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The Bloomberg
US Aggregate Bond Index, which serves at the fund’s regulatory index and provides a broad measure of market performance,
returned 7.30%. The fund generally invests in securities that are included in the ICE BofA US Cash Pay High Yield Constrained Index
which returned 12.37%. The fund does not seek to track the regulatory index. 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.
■
Of the fund’s return, over half came from income, with the remainder coming from price appreciation
Portfolio holdings may have changed since the report date.
Schwab High Yield Bond ETF | Annual Report
The performance data quoted represents
past
performance. Past performance does not guarantee future results. Investment returns
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 data quoted.
To obtain performance information current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus.
Performance of Hypothetical $10,000 Investment (July 11, 2023 - August 31, 2024)
1
Average Annual Total Returns
| | |
|
| | |
| | |
Bloomberg US Aggregate Bond Index 3 | | |
ICE BofA US Cash Pay High Yield Constrained Index | | |
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 www.schwabassetmanagement.com/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.
“ICE
®
” is a registered trademark of ICE Data Indices, LLC or its affiliates and “BofA
®
” is a registered trademark of Bank of America Corporation licensed by Bank of America
Corporation and its affiliates (“BofA”) and may not be used without BofA’s prior written approval. These trademarks have been licensed, along with the ICE BofA US Cash Pay
High Yield Constrained Index (“Index”) for use by Charles Schwab Investment Management, Inc., dba Schwab Asset Management, in connection with the Schwab High Yield
Bond ETF. The Schwab High Yield Bond ETF is not sponsored, endorsed, sold or promoted by ICE Data Indices, LLC, its affiliates or its Third Party Suppliers (“ICE Data and its
Suppliers”). ICE Data and its Suppliers make no representations or warranties regarding the advisability of investing in the Schwab High Yield Bond ETF.
Inception (07/11/2023) represents the date that the shares began trading in the secondary market.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
ETF performance must be shown based on both a Market Price and a NAV basis. The fund’s per
share
NAV is the value of one share of the fund. NAV is calculated by taking
the fund’s total assets (including the fair 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
using the Official Closing Price of the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded
at other times. 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.
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the ICE BofA US Cash Pay High Yield Constrained Index to the Bloomberg US
Aggregate Bond Index. The Bloomberg US Aggregate Bond Index provides a broad measure of market performance. The fund generally invests in securities that are included
in the ICE BofA US Cash Pay High Yield Constrained Index. The fund does not seek to track the regulatory index.
Schwab High Yield Bond ETF | Annual Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Average Maturity | |
Weighted Average Duration | |
Qualified Interest Income | |
Business Interest deduction (163j) | |
Portfolio Composition By Security Type % of Investments
Portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not
inclusive of operational and transaction costs incurred by the fund.
Fixed-income securities are subject to increased loss of principal during periods of rising interest rates. An investment in the fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation (FDIC) or any other government agency.
High-yield securities and unrated securities of similar credit quality (junk bonds) are subject to greater levels of credit and liquidity risks and may be more volatile than
higher-rated securities. High-yield securities are considered predominately speculative with respect to the issuer’s continuing ability to make principal and interest payments.
Includes the fund’s position(s) in money market mutual
funds
registered under the Investment Company Act of 1940, as amended.
Schwab High Yield Bond ETF | Annual Report
This is a summary of certain changes to the fund since September 1, 2023.
For more complete information, you may review the
fund’s prospectus at
www.schwabassetmanagement.com/prospectus
or upon request by calling
or by sending
an email request to
orders@mysummaryprospectus.com
.
■
Effective September 25, 2023, the management fee of the fund was reduced from 0.10% to 0.03%.
For more complete information, you may review the fund’s Annual Holdings and Financial Statements at
www.schwabassetmanagement.com/prospectus
or upon request by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
■
On September 25, 2024, the Board of Trustees authorized a 2-for-1 share split for the fund, which applied to shareholders of
record as of the close of U.S. markets on October 9, 2024. Certain of the fund’s financial statements were retroactively adjusted for
the period ended August 31, 2024, and all prior periods, to reflect the share split.
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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.schwabassetmanagement.com/prospectus
, the SEC’s
website at
, or by contacting Schwab ETFs at 1-877-824-5615.
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.schwabassetmanagement.com/prospectus
or the SEC’s
website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab High Yield Bond ETF | Annual Report
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 19(a)(1) of Form N-CSR. |
Item 3: Audit Committee Financial Expert.
Registrant’s Board of Trustees has determined that Kimberly S. Patmore, Michael J. Beer and J. Derek Penn, each currently serving on its audit, compliance and valuation committee, are each an “audit committee financial expert,” as such term is defined in Item 3 of Form N-CSR. Each member of Registrant’s audit, compliance and valuation committee is “independent” under the standards set forth in Item 3 of Form N-CSR.
The designation of each of Ms. Patmore, Mr. Beer and Mr. Penn 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, compliance and valuation 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, compliance and valuation committee or Board of Trustees.
Item 4: Principal Accountant Fees and Services.
Registrant is composed of thirty-one operational series. Thirteen 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 the last day of February, two series have a fiscal year end of March 31, and nine 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 thirty-one operational series during 2024/2025 and the thirty operational series during 2023/2024, based on their respective 2024/2025 and 2023/2024 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:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a)Audit Fees1 | | | (b)Aucdit-Related Fees | | | (c) Tax Fees2 | | | (d) All Other Fees | |
Fiscal Year
2024/2025 | | Fiscal Year
2023/2024 | | | Fiscal Year
2024/2025 | | | Fiscal Year
2023/2024 | | | Fiscal Year
2024/2025 | | | Fiscal Year
2023/2024 | | | Fiscal Year
2024/2025 | | | Fiscal Year
2023/2024 | |
| $601,700 | | $ | 558,674 | | | $ | 0 | | | $ | 0 | | | $ | 101,835 | | | $ | 98,550 | | | $ | 0 | | | $ | 0 | |
| 1 | The nature of the services includes audit of the registrant’s annual financial statements and normally provided services in connection with regulatory filings for those fiscal years. |
| 2 | The nature of the services includes tax compliance, tax advice and tax planning. |
(e)(1) Registrant’s audit, compliance and valuation 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, compliance and valuation committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by Registrant’s audit, compliance and valuation 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.
| | |
| 2024/2025: $2,757,348 | | 2023/2024: $3,399,066 |
(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, compliance and valuation 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.
(i) Not applicable.
(j) Not applicable.
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, compliance and valuation committee established in accordance with Section 3(a)58(A) of the Exchange Act. The Registrant’s audit, compliance and valuation committee members are Kimberly S. Patmore, Michael J. Beer and J. Derek Penn.
Item 6: Schedule of Investments.
The schedules of investments are included as part of the report to shareholders filed under Item 7 of this Form.
Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Annual Holdings and Financial Statements | August 31, 2024
Schwab International Equity ETFs
Schwab International Dividend Equity ETF | |
Schwab International Equity ETF | |
Schwab International Small-Cap Equity ETF | |
Schwab Emerging Markets Equity ETF | |
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset Management®
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 MSCI 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.
Schwab International Equity ETFs | Annual Holdings and Financial Statements
1
Schwab International Dividend Equity ETF
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)2 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| Commencement of operations. |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| |
| Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
2
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Dividend Equity ETF
Portfolio Holdings as of August 31, 2024
| | |
COMMON STOCKS 99.2% OF NET ASSETS |
|
|
| | |
| | |
Harvey Norman Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
BB Seguridade Participacoes SA | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
China Construction Bank Corp., H Shares | | |
People's Insurance Co. Group of China Ltd., H Shares | | |
| | |
|
|
| | |
|
|
| | |
| | |
| | |
| | |
|
|
| | |
Cie Generale des Etablissements Michelin SCA | | |
| | |
| | |
| | |
|
|
| | |
|
| | |
|
| | |
| | |
| | |
| | |
Power Grid Corp. of India Ltd. | | |
| | |
|
|
Bank Mandiri Persero Tbk. PT | | |
Bank Rakyat Indonesia Persero Tbk. PT | | |
Telkom Indonesia Persero Tbk. PT, Class B | | |
| | |
|
|
| | |
| | |
| | |
| | |
|
|
Daito Trust Construction Co. Ltd. | | |
| | |
| | |
| | |
Ono Pharmaceutical Co. Ltd. | | |
| | |
| | |
|
|
| | |
|
|
Arca Continental SAB de CV | | |
Coca-Cola Femsa SAB de CV | | |
Kimberly-Clark de Mexico SAB de CV, A Shares | | |
| | |
|
|
Koninklijke Ahold Delhaize NV | | |
| | |
| | |
|
|
| | |
|
|
Gjensidige Forsikring ASA | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
|
Schwab International Equity ETFs | Annual Holdings and Financial Statements
3
Schwab International Dividend Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
|
| | |
| | |
| | |
| | |
|
|
| | |
|
|
| | |
| | |
| | |
|
|
| | |
Jardine Cycle & Carriage Ltd. | | |
| | |
Singapore Technologies Engineering Ltd. | | |
United Overseas Bank Ltd. | | |
| | |
|
|
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
Kuehne & Nagel International AG | | |
| | |
| | |
| | |
Zurich Insurance Group AG | | |
| | |
|
|
| | |
Chicony Electronics Co. Ltd. | | |
Radiant Opto-Electronics Corp. | | |
Simplo Technology Co. Ltd. | | |
Synnex Technology International Corp. | | |
| | |
|
|
Intouch Holdings PCL NVDR | | |
PTT Exploration & Production PCL NVDR | | |
Tisco Financial Group PCL NVDR | | |
TMBThanachart Bank PCL NVDR | | |
| | |
|
| | |
United Arab Emirates 0.4% |
Abu Dhabi Islamic Bank PJSC | | |
| | |
| | |
|
|
British American Tobacco PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $703,908,871) | |
|
PREFERRED STOCKS 0.0% OF NET ASSETS |
|
|
Sberbank of Russia PJSC *(a)(b) | | |
Total Preferred Stocks
(Cost $260,897) | |
| | |
SHORT-TERM INVESTMENTS 0.4% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (c) | | |
Total Short-Term Investments
(Cost $2,922,995) | |
| | |
Total Investments in Securities
(Cost $707,092,763) | |
| | |
| | |
| | |
| | |
| | |
| | |
4
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Dividend Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
MSCI EAFE Index, expires 09/20/24 | | | |
MSCI Emerging Markets Index, expires 09/20/24 | | | |
| | | |
| Non-income producing security. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| Trading in Russian securities listed on the Moscow Exchange, Russian ADRs, and Russian GDRs are subject to trade restrictions; and therefore, the ability of the fund to buy these securities is currently not permitted, and the ability of the fund to sell these securities is uncertain. |
| The rate shown is the annualized 7-day yield. |
| American Depositary Receipt |
| Global Depositary Receipt |
| Non-Voting Depositary Receipt |
| |
| Includes holdings within sectors that are less than 1.0% of net assets. |
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at August 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
5
Schwab International Dividend Equity ETF
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $707,092,763) | | |
Foreign currency, at value (cost $1,151,644) | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Variation margin on future contracts | | |
| | |
| | |
|
|
| | |
Foreign capital gains tax | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
6
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Dividend Equity ETF
Statement of Operations
For the period September 1, 2023 through August 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $3,426,328) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated issuers (net of foreign capital gains tax paid of $318,571) | | |
Net realized gains on sales of in-kind redemptions - unaffiliated issuers | | |
Net realized losses on futures contracts | | |
Net realized losses on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers (net of change in foreign capital gains tax of ($1,356,342)) | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
7
Schwab International Dividend Equity ETF
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
8
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETF
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)2 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| Per-Share Data has been retroactively adjusted to reflect a 2-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
| Calculated based on the average shares outstanding during the period. |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
9
Schwab International Equity ETF
Portfolio Holdings as of August 31, 2024
| | |
COMMON STOCKS 99.0% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Bendigo & Adelaide Bank Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Cleanaway Waste Management Ltd. | | |
| | |
| | |
Commonwealth Bank of Australia | | |
| | |
| | |
| | |
| | |
Domain Holdings Australia Ltd. | | |
Domino's Pizza Enterprises Ltd. | | |
| | |
| | |
| | |
Flight Centre Travel Group Ltd. (a) | | |
| | |
| | |
| | |
Harvey Norman Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Insurance Australia Group Ltd. | | |
James Hardie Industries PLC * | | |
| | |
| | |
Liontown Resources Ltd. *(a) | | |
| | |
| | |
| | |
Magellan Financial Group Ltd. | | |
| | |
| | |
| | |
| | |
National Australia Bank Ltd. | | |
| | |
| | |
Northern Star Resources Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Seven Group Holdings Ltd. | | |
| | |
| | |
| | |
Star Entertainment Group Ltd. *(b) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Treasury Wine Estates Ltd. | | |
| | |
Washington H Soul Pattinson & Co. Ltd. | | |
| | |
| | |
| | |
| | |
Woodside Energy Group Ltd. | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Raiffeisen Bank International AG | | |
| | |
| | |
| | |
| | |
|
|
Ackermans & van Haaren NV | | |
| | |
| | |
| | |
| | |
| | |
Groupe Bruxelles Lambert NV | | |
| | |
| | |
10
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Agnico Eagle Mines Ltd./Mines Agnico Eagle Limitee | | |
Alimentation Couche-Tard, Inc. | | |
| | |
| | |
| | |
| | |
Brookfield Asset Management Ltd., Class A | | |
| | |
| | |
Canadian Imperial Bank of Commerce | | |
Canadian National Railway Co. | | |
Canadian Natural Resources Ltd. | | |
Canadian Pacific Kansas City Ltd. | | |
| | |
| | |
Constellation Software, Inc. | | |
| | |
| | |
Fairfax Financial Holdings Ltd. | | |
| | |
| | |
| | |
Great-West Lifeco, Inc. (a) | | |
| | |
| | |
| | |
| | |
Magna International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Restaurant Brands International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Teck Resources Ltd., Class B | | |
| | |
| | |
| | |
| | |
| | |
Wheaton Precious Metals Corp. | | |
| | |
|
|
AP Moller - Maersk AS, Class A | | |
AP Moller - Maersk AS, Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Novonesis (Novozymes) B, Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Cie Generale des Etablissements Michelin SCA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
11
Schwab International Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
La Francaise des Jeux SAEM | | |
| | |
| | |
LVMH Moet Hennessy Louis Vuitton SE | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Unibail-Rodamco-Westfield * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Bayerische Motoren Werke AG | | |
| | |
| | |
| | |
Carl Zeiss Meditec AG, Bearer Shares | | |
| | |
| | |
| | |
CTS Eventim AG & Co. KGaA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
DWS Group GmbH & Co. KGaA | | |
| | |
| | |
| | |
| | |
Fraport AG Frankfurt Airport Services Worldwide * | | |
Fresenius Medical Care AG | | |
Fresenius SE & Co. KGaA * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
AAC Technologies Holdings, Inc. | | |
| | |
| | |
| | |
| | |
BOC Hong Kong Holdings Ltd. | | |
Brightoil Petroleum Holdings Ltd. *(b) | | |
Budweiser Brewing Co. APAC Ltd. | | |
Cathay Pacific Airways Ltd. (a) | | |
| | |
China Travel International Investment Hong Kong Ltd. | | |
Chow Tai Fook Jewellery Group Ltd. | | |
| | |
CK Hutchison Holdings Ltd. | | |
CK Infrastructure Holdings Ltd. | | |
| | |
Dah Sing Banking Group Ltd. | | |
DFI Retail Group Holdings Ltd. | | |
| | |
| | |
| | |
12
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Galaxy Entertainment Group Ltd. | | |
| | |
Hang Lung Properties Ltd. | | |
| | |
Henderson Land Development Co. Ltd. | | |
Hong Kong & China Gas Co. Ltd. | | |
Hong Kong Exchanges & Clearing Ltd. | | |
Hongkong Land Holdings Ltd. | | |
Huabao International Holdings Ltd. (a) | | |
| | |
Hysan Development Co. Ltd. | | |
Jardine Matheson Holdings Ltd. | | |
Johnson Electric Holdings Ltd. | | |
Kerry Logistics Network Ltd. | | |
| | |
| | |
| | |
| | |
Melco International Development Ltd. * | | |
| | |
| | |
| | |
| | |
New World Development Co. Ltd. (a) | | |
Nexteer Automotive Group Ltd. | | |
| | |
Orient Overseas International Ltd. | | |
| | |
Power Assets Holdings Ltd. | | |
| | |
Samsonite International SA | | |
| | |
| | |
| | |
SITC International Holdings Co. Ltd. | | |
| | |
Sun Hung Kai Properties Ltd. | | |
Super Hi International Holding Ltd. *(a) | | |
Swire Pacific Ltd., A Shares | | |
Swire Pacific Ltd., B Shares | | |
| | |
Techtronic Industries Co. Ltd. | | |
United Energy Group Ltd. * | | |
Vitasoy International Holdings Ltd. | | |
| | |
| | |
| | |
Wharf Real Estate Investment Co. Ltd. | | |
| | |
Xinyi Glass Holdings Ltd. | | |
Yue Yuen Industrial Holdings Ltd. | | |
| | |
|
|
| | |
Bank of Ireland Group PLC | | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
Bezeq The Israeli Telecommunication Corp. Ltd. | | |
Big Shopping Centers Ltd. * | | |
| | |
| | |
| | |
| | |
Energix-Renewable Energies Ltd. | | |
Enlight Renewable Energy Ltd. * | | |
Fattal Holdings 1998 Ltd. * | | |
First International Bank Of Israel Ltd. | | |
| | |
Harel Insurance Investments & Financial Services Ltd. | | |
| | |
| | |
Israel Discount Bank Ltd., A Shares | | |
| | |
Mivne Real Estate KD Ltd. | | |
Mizrahi Tefahot Bank Ltd. | | |
| | |
| | |
| | |
Shapir Engineering & Industry Ltd. * | | |
| | |
Teva Pharmaceutical Industries Ltd. * | | |
Tower Semiconductor Ltd. * | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
FinecoBank Banca Fineco SpA | | |
| | |
| | |
Infrastrutture Wireless Italiane SpA | | |
| | |
| | |
| | |
| | |
Mediobanca Banca di Credito Finanziario SpA | | |
| | |
| | |
| | |
| | |
| | |
Recordati Industria Chimica e Farmaceutica SpA | | |
| | |
| | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
13
Schwab International Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
Terna - Rete Elettrica Nazionale | | |
| | |
| | |
|
|
| | |
| | |
| | |
Advance Residence Investment Corp. | | |
| | |
| | |
AEON Financial Service Co. Ltd. | | |
| | |
AEON REIT Investment Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Asahi Group Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
AZ-COM MARUWA Holdings, Inc. | | |
Bandai Namco Holdings, Inc. | | |
BayCurrent Consulting, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Canon Marketing Japan, Inc. | | |
| | |
| | |
| | |
Central Japan Railway Co. | | |
| | |
Chubu Electric Power Co., Inc. | | |
Chugai Pharmaceutical Co. Ltd. | | |
Chugin Financial Group, Inc. | | |
Chugoku Electric Power Co., Inc. | | |
Coca-Cola Bottlers Japan Holdings, Inc. | | |
| | |
Concordia Financial Group Ltd. | | |
Cosmo Energy Holdings Co. Ltd. | | |
Cosmos Pharmaceutical Corp. | | |
| | |
| | |
Dai Nippon Printing Co. Ltd. | | |
| | |
| | |
| | |
| | |
Dai-ichi Life Holdings, Inc. | | |
| | |
| | |
| | |
| | |
Daito Trust Construction Co. Ltd. | | |
Daiwa House Industry Co. Ltd. | | |
Daiwa House REIT Investment Corp. | | |
Daiwa Office Investment Corp. | | |
Daiwa Securities Group, Inc. | | |
Daiwa Securities Living Investments Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Electric Power Development Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Frontier Real Estate Investment Corp. | | |
| | |
| | |
Fuji Media Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Fukuoka Financial Group, Inc. | | |
Fuyo General Lease Co. Ltd. | | |
| | |
| | |
GMO Payment Gateway, Inc. | | |
| | |
| | |
| | |
Hakuhodo DY Holdings, Inc. | | |
| | |
Hankyu Hanshin Holdings, Inc. | | |
Harmonic Drive Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Hisamitsu Pharmaceutical Co., Inc. | | |
Hitachi Construction Machinery Co. Ltd. | | |
| | |
| | |
| | |
14
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Iida Group Holdings Co. Ltd. | | |
Industrial & Infrastructure Fund Investment Corp. | | |
| | |
| | |
Internet Initiative Japan, Inc. | | |
Invincible Investment Corp. | | |
Isetan Mitsukoshi Holdings Ltd. | | |
| | |
| | |
| | |
Itoham Yonekyu Holdings, Inc. | | |
| | |
| | |
| | |
J Front Retailing Co. Ltd. | | |
| | |
Japan Airport Terminal Co. Ltd. | | |
Japan Aviation Electronics Industry Ltd. | | |
Japan Exchange Group, Inc. | | |
Japan Hotel REIT Investment Corp. | | |
Japan Logistics Fund, Inc. | | |
Japan Metropolitan Fund Invest (a) | | |
| | |
Japan Post Holdings Co. Ltd. | | |
Japan Post Insurance Co. Ltd. | | |
Japan Prime Realty Investment Corp. | | |
Japan Real Estate Investment Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Kansai Electric Power Co., Inc. | | |
| | |
| | |
| | |
Kawasaki Heavy Industries Ltd. | | |
Kawasaki Kisen Kaisha Ltd. | | |
| | |
KDX Realty Investment Corp. | | |
| | |
| | |
| | |
Keisei Electric Railway Co. Ltd. | | |
| | |
| | |
| | |
| | |
Kintetsu Group Holdings Co. Ltd. | | |
| | |
| | |
Kobayashi Pharmaceutical Co. Ltd. | | |
| | |
| | |
Koei Tecmo Holdings Co. Ltd. | | |
Koito Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Kotobuki Spirits Co. Ltd. | | |
| | |
| | |
| | |
Kurita Water Industries Ltd. | | |
Kusuri No. Aoki Holdings Co. Ltd. | | |
| | |
Kyoto Financial Group, Inc. | | |
| | |
| | |
Kyushu Electric Power Co., Inc. | | |
Kyushu Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Matsui Securities Co. Ltd. | | |
| | |
| | |
McDonald's Holdings Co. Japan Ltd. | | |
Mebuki Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Mitsubishi Chemical Group Corp. | | |
| | |
Mitsubishi Electric Corp. | | |
Mitsubishi Estate Co. Ltd. | | |
Mitsubishi Gas Chemical Co., Inc. | | |
Mitsubishi HC Capital, Inc. | | |
Mitsubishi Heavy Industries Ltd. | | |
Mitsubishi Logistics Corp. | | |
Mitsubishi Materials Corp. | | |
| | |
Mitsubishi UFJ Financial Group, Inc. | | |
| | |
| | |
| | |
Mitsui Fudosan Logistics Park, Inc. | | |
| | |
Mitsui Mining & Smelting Co. Ltd. | | |
| | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
15
Schwab International Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
Mizuho Financial Group, Inc. | | |
| | |
| | |
Mori Hills REIT Investment Corp. | | |
| | |
Morinaga Milk Industry Co. Ltd. | | |
MS&AD Insurance Group Holdings, Inc. | | |
Murata Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
Nankai Electric Railway Co. Ltd. | | |
| | |
NEC Networks & System Integration Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nihon M&A Center Holdings, Inc. | | |
| | |
| | |
Nippon Accommodations Fund, Inc. | | |
Nippon Building Fund, Inc. | | |
Nippon Electric Glass Co. Ltd. | | |
NIPPON EXPRESS HOLDINGS, Inc. | | |
| | |
Nippon Paint Holdings Co. Ltd. | | |
Nippon Prologis REIT, Inc. | | |
Nippon Sanso Holdings Corp. | | |
| | |
| | |
| | |
Nippon Telegraph & Telephone Corp. | | |
| | |
| | |
Nishi-Nippon Railroad Co. Ltd. | | |
| | |
| | |
Nisshin Seifun Group, Inc. | | |
Nissin Foods Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nomura Real Estate Holdings, Inc. | | |
Nomura Real Estate Master Fund, Inc. | | |
Nomura Research Institute Ltd. | | |
| | |
| | |
| | |
| | |
OBIC Business Consultants Co. Ltd. | | |
| | |
Odakyu Electric Railway Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Ono Pharmaceutical Co. Ltd. | | |
Open House Group Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pan Pacific International Holdings Corp. | | |
| | |
| | |
Penta-Ocean Construction Co. Ltd. | | |
| | |
| | |
| | |
Pola Orbis Holdings, Inc. | | |
| | |
| | |
| | |
Recruit Holdings Co. Ltd. | | |
| | |
Renesas Electronics Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rohto Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Santen Pharmaceutical Co. Ltd. | | |
| | |
| | |
Sawai Group Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
Sega Sammy Holdings, Inc. | | |
| | |
| | |
| | |
Sekisui Chemical Co. Ltd. | | |
| | |
| | |
Seven & i Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
Shikoku Electric Power Co., Inc. | | |
| | |
| | |
| | |
| | |
Shin-Etsu Chemical Co. Ltd. | | |
16
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Shinko Electric Industries Co. Ltd. | | |
| | |
Ship Healthcare Holdings, Inc. | | |
| | |
Shizuoka Financial Group, Inc. | | |
SHO-BOND Holdings Co. Ltd. | | |
Skylark Holdings Co. Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
Sohgo Security Services Co. Ltd. | | |
| | |
| | |
| | |
| | |
Square Enix Holdings Co. Ltd. | | |
Stanley Electric Co. Ltd. | | |
| | |
| | |
| | |
Sumitomo Bakelite Co. Ltd. | | |
Sumitomo Chemical Co. Ltd. | | |
| | |
Sumitomo Electric Industries Ltd. | | |
Sumitomo Forestry Co. Ltd. | | |
Sumitomo Heavy Industries Ltd. | | |
Sumitomo Metal Mining Co. Ltd. | | |
Sumitomo Mitsui Financial Group, Inc. | | |
Sumitomo Mitsui Trust Holdings, Inc. | | |
Sumitomo Pharma Co. Ltd. * | | |
Sumitomo Realty & Development Co. Ltd. | | |
Sumitomo Rubber Industries Ltd. | | |
| | |
Suntory Beverage & Food Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Takeda Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Toei Animation Co. Ltd. (a) | | |
| | |
| | |
Tohoku Electric Power Co., Inc. | | |
| | |
Tokio Marine Holdings, Inc. | | |
| | |
Tokyo Electric Power Co. Holdings, Inc. * | | |
| | |
| | |
| | |
Tokyo Ohka Kogyo Co. Ltd. | | |
| | |
| | |
| | |
Tokyu Fudosan Holdings Corp. | | |
| | |
| | |
Toridoll Holdings Corp. (a) | | |
| | |
| | |
Toyo Seikan Group Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Urban Investment Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Yamaguchi Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
BE Semiconductor Industries NV | | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
17
Schwab International Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
Koninklijke Ahold Delhaize NV | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Auckland International Airport Ltd. | | |
| | |
| | |
Fisher & Paykel Healthcare Corp. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
SKYCITY Entertainment Group Ltd. | | |
| | |
| | |
|
|
| | |
| | |
AutoStore Holdings Ltd. * | | |
| | |
| | |
Gjensidige Forsikring ASA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Bank Polska Kasa Opieki SA | | |
| | |
| | |
| | |
| | |
| | |
Powszechna Kasa Oszczednosci Bank Polski SA | | |
Powszechny Zaklad Ubezpieczen SA | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
BNK Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Daewoo Engineering & Construction Co. Ltd. * | | |
| | |
DGB Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
Doosan Enerbility Co. Ltd. * | | |
| | |
| | |
Ecopro Materials Co. Ltd. * | | |
| | |
| | |
| | |
| | |
GS Engineering & Construction Corp. * | | |
| | |
| | |
Hana Financial Group, Inc. | | |
| | |
Hankook Tire & Technology Co. Ltd. | | |
| | |
| | |
Hanmi Semiconductor Co. Ltd. | | |
| | |
Hanwha Aerospace Co. Ltd. (b) | | |
| | |
Hanwha Life Insurance Co. Ltd. | | |
| | |
| | |
| | |
HD Hyundai Heavy Industries Co. Ltd. * | | |
HD Hyundai Infracore Co. Ltd. * | | |
| | |
HD Korea Shipbuilding & Offshore Engineering Co. Ltd. | | |
| | |
| | |
| | |
18
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
Hyundai Department Store Co. Ltd. | | |
Hyundai Engineering & Construction Co. Ltd. | | |
| | |
Hyundai Marine & Fire Insurance Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
KEPCO Plant Service & Engineering Co. Ltd. | | |
| | |
Korea Aerospace Industries Ltd. | | |
Korea Electric Power Corp. | | |
| | |
Korea Investment Holdings Co. Ltd. | | |
| | |
Korean Air Lines Co. Ltd. | | |
| | |
| | |
| | |
Kumho Petrochemical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
LG Energy Solution Ltd. * | | |
| | |
| | |
| | |
| | |
Lotte Chilsung Beverage Co. Ltd. | | |
| | |
Lotte Energy Materials Corp. | | |
LOTTE Fine Chemical Co. Ltd. | | |
| | |
| | |
Meritz Financial Group, Inc. | | |
Mirae Asset Securities Co. Ltd. | | |
| | |
| | |
| | |
NH Investment & Securities Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Posco International Corp. | | |
| | |
| | |
Samsung Biologics Co. Ltd. * | | |
| | |
| | |
| | |
Samsung Electro-Mechanics Co. Ltd. | | |
Samsung Electronics Co. Ltd. | | |
Samsung Fire & Marine Insurance Co. Ltd. | | |
Samsung Heavy Industries Co. Ltd. * | | |
Samsung Life Insurance Co. Ltd. | | |
| | |
| | |
Samsung Securities Co. Ltd. | | |
| | |
| | |
Shinhan Financial Group Co. Ltd. | | |
| | |
SK Biopharmaceuticals Co. Ltd. * | | |
| | |
| | |
| | |
SK IE Technology Co. Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Solus Advanced Materials Co. Ltd. | | |
| | |
Woori Financial Group, Inc. | | |
| | |
| | |
|
|
| | |
| | |
CapitaLand Integrated Commercial Trust | | |
CapitaLand Investment Ltd. | | |
| | |
| | |
| | |
Frasers Logistics & Commercial Trust | | |
| | |
Hutchison Port Holdings Trust, Class U | | |
Jardine Cycle & Carriage Ltd. | | |
| | |
| | |
| | |
Mapletree Industrial Trust | | |
Mapletree Logistics Trust | | |
Mapletree Pan Asia Commercial Trust | | |
| | |
| | |
Oversea-Chinese Banking Corp. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Singapore Technologies Engineering Ltd. | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
19
Schwab International Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Singapore Telecommunications Ltd. | | |
| | |
Suntec Real Estate Investment Trust | | |
| | |
United Overseas Bank Ltd. | | |
| | |
| | |
Wilmar International Ltd. | | |
| | |
|
|
| | |
ACS Actividades de Construccion y Servicios SA | | |
| | |
| | |
Banco Bilbao Vizcaya Argentaria SA | | |
| | |
| | |
| | |
| | |
| | |
Corp. ACCIONA Energias Renovables SA | | |
| | |
| | |
| | |
Fomento de Construcciones y Contratas SA | | |
| | |
| | |
Industria de Diseno Textil SA | | |
| | |
Merlin Properties Socimi SA | | |
Naturgy Energy Group SA (a) | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fastighets AB Balder, B Shares * | | |
| | |
H & M Hennes & Mauritz AB, B Shares | | |
| | |
| | |
| | |
Industrivarden AB, A Shares | | |
Industrivarden AB, C Shares | | |
| | |
Investment AB Latour, B Shares | | |
| | |
| | |
| | |
L E Lundbergforetagen AB, B Shares | | |
| | |
Nibe Industrier AB, B Shares | | |
| | |
| | |
| | |
| | |
| | |
Skandinaviska Enskilda Banken AB, A Shares | | |
Skandinaviska Enskilda Banken AB, C Shares | | |
| | |
| | |
| | |
| | |
Svenska Cellulosa AB SCA, B Shares | | |
Svenska Handelsbanken AB, A Shares | | |
Svenska Handelsbanken AB, B Shares (a) | | |
| | |
| | |
Swedish Orphan Biovitrum AB * | | |
| | |
Telefonaktiebolaget LM Ericsson, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Banque Cantonale Vaudoise | | |
| | |
| | |
| | |
Chocoladefabriken Lindt & Spruengli AG | | |
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates | | |
Cie Financiere Richemont SA, Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Kuehne & Nagel International AG | | |
Logitech International SA | | |
| | |
20
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
Partners Group Holding AG | | |
| | |
| | |
Roche Holding AG, Bearer Shares | | |
| | |
| | |
Schindler Holding AG, Participation Certificates | | |
| | |
| | |
| | |
| | |
| | |
| | |
Swatch Group AG, Bearer Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Zurich Insurance Group AG | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Associated British Foods PLC | | |
| | |
| | |
| | |
B&M European Value Retail SA | | |
| | |
| | |
| | |
| | |
Berkeley Group Holdings PLC | | |
| | |
British American Tobacco PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ferguson Enterprises, Inc. | | |
Flutter Entertainment PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hikma Pharmaceuticals PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
InterContinental Hotels Group PLC | | |
Intermediate Capital Group PLC | | |
International Consolidated Airlines Group SA * | | |
| | |
| | |
| | |
| | |
| | |
Land Securities Group PLC | | |
Legal & General Group PLC | | |
| | |
London Stock Exchange Group PLC | | |
| | |
Marks & Spencer Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Phoenix Group Holdings PLC | | |
| | |
Reckitt Benckiser Group PLC | | |
| | |
| | |
| | |
| | |
Rolls-Royce Holdings PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Utilities Group PLC | | |
| | |
| | |
| | |
| | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
21
Schwab International Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
Total Common Stocks
(Cost $31,319,662,484) | |
|
PREFERRED STOCKS 0.5% OF NET ASSETS |
|
|
Bayerische Motoren Werke AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Telecom Italia SpA - RSP * | | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Samsung Electronics Co. Ltd. | | |
Samsung Fire & Marine Insurance Co. Ltd. | | |
| | |
| | |
|
|
| | |
Total Preferred Stocks
(Cost $188,250,158) | |
|
WARRANTS 0.0% OF NET ASSETS |
|
|
Constellation Software, Inc. |
| | |
| |
| | |
SHORT-TERM INVESTMENTS 0.2% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (c) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (c)(d) | | |
| | |
Total Short-Term Investments
(Cost $91,491,965) | |
| | |
Total Investments in Securities
(Cost $31,599,404,607) | |
| | |
| | |
| | |
| | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
MSCI EAFE Index, expires 09/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $44,395,300. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| |
| Global Depositary Receipt |
| Real Estate Investment Trust |
| Risparmio (Savings Shares) |
22
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at August 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
23
Schwab International Equity ETF
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $31,599,404,607) including securities on loan of $44,395,300 | | |
Foreign currency, at value (cost $30,121,059) | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Variation margin on future contracts | | |
Income from securities on loan | | |
| | |
| | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
| Net Asset Value and Shares Outstanding have been retroactively adjusted to reflect a 2-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
24
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETF
Statement of Operations
For the period September 1, 2023 through August 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $96,422,784) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
Net realized losses on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Professional fees associated with the filing of foreign withholding tax claims in the European Union are deemed to be non-contingent and non-routine expenses of the fund (see financial notes 2(d) and 4 for additional information). |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
25
Schwab International Equity ETF
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES1 |
| | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS1 |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| For the period ended August 31, 2024, and the prior report period, transactions in fund shares have been retroactively adjusted to reflect a 2-for-1 share split effective after the close of U.S. markets on October 10, 2024. The retroactive adjustment of the share split does not change the transaction in fund shares values (see financial note 11 for additional information). |
26
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Small-Cap Equity ETF
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| Calculated based on the average shares outstanding during the period. |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Effective February 25, 2020, the annual operating expense ratio was reduced to 0.11%. The ratio presented for the period ended August 31, 2020, is a blended ratio. |
| Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
27
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024
| | |
COMMON STOCKS 99.5% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
APM Human Services International Ltd. * | | |
Arafura Rare Earths Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Australian Agricultural Co. Ltd. * | | |
Australian Clinical Labs Ltd. (a) | | |
Australian Ethical Investment Ltd. | | |
Australian Finance Group Ltd. | | |
| | |
| | |
| | |
| | |
BrainChip Holdings Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Cedar Woods Properties Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Charter Hall Long Wale REIT | | |
| | |
Charter Hall Social Infrastructure REIT | | |
Clinuvel Pharmaceuticals Ltd. (a) | | |
| | |
| | |
| | |
| | |
Coronado Global Resources, Inc. | | |
Corporate Travel Management Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
FleetPartners Group Ltd. * | | |
| | |
GDI Property Group Partnership | | |
| | |
| | |
| | |
| | |
Growthpoint Properties Australia Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hotel Property Investments Ltd. | | |
| | |
| | |
| | |
| | |
Ingenia Communities Group | | |
| | |
Integral Diagnostics Ltd. (a) | | |
| | |
| | |
| | |
| | |
Judo Capital Holdings Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lifestyle Communities Ltd. | | |
| | |
Macquarie Technology Group Ltd. * | | |
Mayne Pharma Group Ltd. * | | |
McMillan Shakespeare Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Navigator Global Investments Ltd. | | |
| | |
Neuren Pharmaceuticals Ltd. * | | |
| | |
| | |
| | |
Nine Entertainment Co. Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
28
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Pinnacle Investment Management Group Ltd. | | |
Platinum Asset Management Ltd. | | |
| | |
PPK Mining Equipment Group Pty. Ltd. *(b) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Reliance Worldwide Corp. Ltd. | | |
| | |
| | |
| | |
Sandfire Resources Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Strike Energy Ltd. *(a)(b) | | |
| | |
| | |
| | |
| | |
Telix Pharmaceuticals Ltd. * | | |
Temple & Webster Group Ltd. * | | |
| | |
Ventia Services Group Pty. Ltd. | | |
Virgin Australia Holdings Pty. Ltd. *(b) | | |
| | |
Vulcan Energy Resources Ltd. *(a) | | |
| | |
| | |
| | |
| | |
West African Resources Ltd. * | | |
| | |
| | |
| | |
| | |
|
|
| | |
AT&S Austria Technologie & Systemtechnik AG *(a) | | |
| | |
CA Immobilien Anlagen AG (a) | | |
| | |
| | |
| | |
| | |
Mayr Melnhof Karton AG (a) | | |
Oesterreichische Post AG (a) | | |
| | |
| | |
| | |
Schoeller-Bleckmann Oilfield Equipment AG | | |
| | |
| | |
| | |
Vienna Insurance Group AG Wiener Versicherung Gruppe | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Shurgard Self Storage Ltd. | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Alamos Gold, Inc., Class A | | |
Algonquin Power & Utilities Corp. | | |
Allied Properties Real Estate Investment Trust | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ballard Power Systems, Inc. * | | |
Bausch Health Cos., Inc. * | | |
| | |
| | |
Boardwalk Real Estate Investment Trust | | |
Bombardier, Inc., Class B * | | |
| | |
Boyd Group Services, Inc. | | |
Brookfield Infrastructure Corp., Class A | | |
Brookfield Renewable Corp., Class A | | |
| | |
| | |
Canadian Apartment Properties REIT | | |
Canadian Tire Corp. Ltd., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Chartwell Retirement Residences | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
29
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Choice Properties Real Estate Investment Trust | | |
| | |
Cogeco Communications, Inc. | | |
Colliers International Group, Inc. | | |
| | |
| | |
Descartes Systems Group, Inc. * | | |
Dream Industrial Real Estate Investment Trust | | |
| | |
Element Fleet Management Corp. | | |
| | |
| | |
| | |
Finning International, Inc. | | |
First Capital Real Estate Investment Trust | | |
First Majestic Silver Corp. | | |
First National Financial Corp. | | |
First Quantum Minerals Ltd. * | | |
| | |
| | |
| | |
| | |
Granite Real Estate Investment Trust | | |
H&R Real Estate Investment Trust | | |
| | |
| | |
| | |
| | |
Innergex Renewable Energy, Inc. | | |
Ivanhoe Mines Ltd., Class A * | | |
| | |
| | |
| | |
Laurentian Bank of Canada | | |
Lightspeed Commerce, Inc. * | | |
| | |
Lithium Americas Argentina Corp. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Northland Power, Inc. (a) | | |
NorthWest Healthcare Properties Real Estate Investment Trust | | |
Novagold Resources, Inc. * | | |
| | |
| | |
| | |
| | |
Osisko Gold Royalties Ltd. | | |
Pan American Silver Corp. | | |
Paramount Resources Ltd., Class A | | |
| | |
| | |
| | |
Premium Brands Holdings Corp. | | |
Primaris Real Estate Investment Trust | | |
| | |
| | |
| | |
RioCan Real Estate Investment Trust | | |
| | |
| | |
SmartCentres Real Estate Investment Trust | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Torex Gold Resources, Inc. * | | |
| | |
| | |
Transcontinental, Inc., Class A | | |
| | |
| | |
West Fraser Timber Co. Ltd. | | |
Westshore Terminals Investment Corp. | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
NTG Nordic Transport Group AS, Class A * | | |
Ringkjoebing Landbobank AS | | |
| | |
Scandinavian Tobacco Group AS, A Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Metsa Board OYJ, B Shares | | |
| | |
| | |
30
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Antin Infrastructure Partners SA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Etablissements Maurel et Prom SA | | |
| | |
Eutelsat Communications SACA *(a) | | |
| | |
| | |
| | |
Gaztransport Et Technigaz SA | | |
| | |
| | |
ID Logistics Group SACA * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Television Francaise 1 SA | | |
| | |
Ubisoft Entertainment SA * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
X-Fab Silicon Foundries SE *(a) | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
CompuGroup Medical SE & Co. KGaA | | |
| | |
Deutsche Beteiligungs AG (a) | | |
| | |
Deutsche Pfandbriefbank AG *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Grand City Properties SA * | | |
| | |
Hamburger Hafen und Logistik AG | | |
| | |
| | |
Hornbach Holding AG & Co. KGaA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
ProSiebenSat.1 Media SE (a) | | |
| | |
| | |
Schott Pharma AG & Co. KGaA | | |
Secunet Security Networks AG | | |
| | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
31
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Thyssenkrupp Nucera AG & Co. KGaA *(a) | | |
| | |
| | |
| | |
Vitesco Technologies Group AG, Class A | | |
| | |
| | |
Wuestenrot & Wuerttembergische AG | | |
| | |
|
|
Beijing Tong Ren Tang Chinese Medicine Co. Ltd. (a) | | |
Cafe de Coral Holdings Ltd. | | |
| | |
China Animal Healthcare Ltd. *(b) | | |
Chow Sang Sang Holdings International Ltd. | | |
CITIC Resources Holdings Ltd. | | |
CITIC Telecom International Holdings Ltd. | | |
C-Mer Medical Holdings Ltd. *(a) | | |
Cowell e Holdings, Inc. *(a) | | |
Dah Sing Financial Holdings Ltd. | | |
Everest Medicines Ltd. *(a) | | |
Far East Consortium International Ltd. | | |
Fortune Real Estate Investment Trust | | |
Giordano International Ltd. | | |
Guotai Junan International Holdings Ltd. | | |
| | |
Hutchison Telecommunications Hong Kong Holdings Ltd. | | |
| | |
Jinchuan Group International Resources Co. Ltd. (a) | | |
JS Global Lifestyle Co. Ltd. * | | |
K Wah International Holdings Ltd. | | |
LK Technology Holdings Ltd. | | |
Luk Fook Holdings International Ltd. | | |
| | |
| | |
Pacific Basin Shipping Ltd. | | |
| | |
Realord Group Holdings Ltd. *(a) | | |
SmarTone Telecommunications Holdings Ltd. | | |
Stella International Holdings Ltd. | | |
| | |
Sunlight Real Estate Investment Trust | | |
Superb Summit International Group Ltd. *(b) | | |
Texhong International Group Ltd. * | | |
Theme International Holdings Ltd. | | |
Truly International Holdings Ltd. | | |
United Laboratories International Holdings Ltd. | | |
| | |
Value Partners Group Ltd. | | |
| | |
| | |
| | |
|
|
| | |
|
|
| | |
Alony Hetz Properties & Investments Ltd. | | |
| | |
| | |
| | |
| | |
Clal Insurance Enterprises Holdings Ltd. * | | |
| | |
Delek Automotive Systems Ltd. | | |
| | |
| | |
| | |
| | |
Formula Systems 1985 Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Menora Mivtachim Holdings Ltd. | | |
Migdal Insurance & Financial Holdings Ltd. | | |
| | |
One Software Technologies Ltd. | | |
| | |
Partner Communications Co. Ltd. * | | |
| | |
| | |
Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. | | |
| | |
Sapiens International Corp. NV | | |
Sella Capital Real Estate Ltd. | | |
| | |
| | |
Summit Real Estate Holdings Ltd. | | |
| | |
|
|
| | |
| | |
| | |
Arnoldo Mondadori Editore SpA | | |
| | |
| | |
| | |
Banca Monte dei Paschi di Siena SpA | | |
Banca Popolare di Sondrio SpA | | |
32
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Danieli & C Officine Meccaniche SpA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Juventus Football Club SpA *(a) | | |
| | |
| | |
| | |
MFE-MediaForEurope NV, Class A | | |
MFE-MediaForEurope NV, Class B | | |
| | |
| | |
| | |
| | |
| | |
Salvatore Ferragamo SpA (a) | | |
| | |
| | |
| | |
| | |
Tamburi Investment Partners SpA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Advance Logistics Investment Corp. | | |
| | |
| | |
| | |
| | |
Aichi Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Arisawa Manufacturing Co. Ltd. | | |
| | |
Asahi Diamond Industrial Co. Ltd. | | |
| | |
| | |
ASKA Pharmaceutical Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Bando Chemical Industries Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Bell System24 Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Central Automotive Products Ltd. | | |
| | |
| | |
Chilled & Frozen Logistics Holdings Co. Ltd. * | | |
| | |
| | |
Chofu Seisakusho Co. Ltd. | | |
| | |
| | |
Chubu Steel Plate Co. Ltd. | | |
| | |
Chugoku Marine Paints Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Comforia Residential REIT, Inc. | | |
Computer Engineering & Consulting Ltd. | | |
| | |
| | |
| | |
Create Restaurants Holdings, Inc. | | |
Create SD Holdings Co. Ltd. | | |
| | |
| | |
| | |
Dai Nippon Toryo Co. Ltd. | | |
| | |
| | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
33
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
Daiichi Jitsugyo Co. Ltd. | | |
Daiki Aluminium Industry Co. Ltd. | | |
Daikoku Denki Co. Ltd. (a) | | |
Daikokutenbussan Co. Ltd. | | |
| | |
Dainichiseika Color & Chemicals Manufacturing Co. Ltd. | | |
| | |
Daishi Hokuetsu Financial Group, Inc. | | |
Daito Pharmaceutical Co. Ltd. | | |
| | |
Daiwabo Holdings Co. Ltd. | | |
DCM Holdings Co. Ltd. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Doutor Nichires Holdings Co. Ltd. | | |
| | |
| | |
DyDo Group Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
ESCON Japan REIT Investment Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Financial Partners Group Co. Ltd. | | |
| | |
| | |
France Bed Holdings Co. Ltd. | | |
| | |
| | |
| | |
Fuji Seal International, Inc. | | |
| | |
| | |
| | |
| | |
Fujio Food Group, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fukushima Galilei Co. Ltd. | | |
Fukuyama Transporting Co. Ltd. | | |
FULLCAST Holdings Co. Ltd. | | |
Funai Soken Holdings, Inc. | | |
| | |
Furukawa Electric Co. Ltd. | | |
| | |
| | |
| | |
Futaba Industrial Co. Ltd. | | |
| | |
| | |
| | |
Gamecard-Joyco Holdings, Inc. (a) | | |
Genki Global Dining Concepts Corp. | | |
Genky DrugStores Co. Ltd. | | |
| | |
| | |
Global One Real Estate Investment Corp. | | |
| | |
| | |
GMO Financial Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
GungHo Online Entertainment, Inc. | | |
| | |
| | |
H.U. Group Holdings, Inc. | | |
| | |
| | |
| | |
| | |
Hankyu Hanshin REIT, Inc. | | |
| | |
| | |
| | |
Health Care & Medical Investment Corp. | | |
Heiwa Real Estate Co. Ltd. | | |
Heiwa Real Estate REIT, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hodogaya Chemical Co. Ltd. | | |
| | |
Hokkaido Electric Power Co., Inc. | | |
| | |
Hokkoku Financial Holdings, Inc. | | |
| | |
Hokuetsu Industries Co. Ltd. | | |
Hokuhoku Financial Group, Inc. | | |
Hokuriku Electric Power Co. | | |
| | |
| | |
Hoosiers Holdings Co. Ltd. | | |
Hoshino Resorts REIT, Inc. | | |
| | |
| | |
34
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
Ichigo Office REIT Investment Corp. | | |
| | |
| | |
Ichiyoshi Securities Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Inaba Denki Sangyo Co. Ltd. | | |
| | |
| | |
| | |
| | |
Integrated Design & Engineering Holdings Co. Ltd. | | |
Iriso Electronics Co. Ltd. | | |
Ishihara Sangyo Kaisha Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Japan Elevator Service Holdings Co. Ltd. | | |
| | |
| | |
| | |
Japan Petroleum Exploration Co. Ltd. | | |
Japan Pulp & Paper Co. Ltd. | | |
Japan Securities Finance Co. Ltd. | | |
| | |
Japan Wool Textile Co. Ltd. | | |
| | |
JCR Pharmaceuticals Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Juroku Financial Group, Inc. | | |
| | |
| | |
Kaga Electronics Co. Ltd. | | |
Kaken Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
Kanto Denka Kogyo Co. Ltd. | | |
| | |
Katakura Industries Co. Ltd. | | |
| | |
Kawada Technologies, Inc. | | |
KeePer Technical Laboratory Co. Ltd. | | |
Keihanshin Building Co. Ltd. | | |
| | |
Kenko Mayonnaise Co. Ltd. | | |
| | |
| | |
KFC Holdings Japan Ltd. (a) | | |
| | |
| | |
Kissei Pharmaceutical Co. Ltd. | | |
Ki-Star Real Estate Co. Ltd. | | |
| | |
| | |
| | |
Koatsu Gas Kogyo Co. Ltd. | | |
| | |
| | |
Komehyo Holdings Co. Ltd. | | |
| | |
| | |
| | |
Konoike Transport Co. Ltd. | | |
Kosaido Holdings Co. Ltd. | | |
Koshidaka Holdings Co. Ltd. | | |
KPP Group Holdings Co. Ltd. | | |
| | |
| | |
Kumiai Chemical Industry Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Kyokuto Kaihatsu Kogyo Co. Ltd. | | |
Kyokuto Securities Co. Ltd. | | |
| | |
Kyorin Pharmaceutical Co. Ltd. | | |
Kyoritsu Maintenance Co. Ltd. | | |
Kyosan Electric Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
M&A Capital Partners Co. Ltd. | | |
M&A Research Institute Holdings, Inc. * | | |
| | |
| | |
Makino Milling Machine Co. Ltd. | | |
Management Solutions Co. Ltd. | | |
| | |
Mars Group Holdings Corp. | | |
| | |
| | |
| | |
Marusan Securities Co. Ltd. | | |
Maruzen Showa Unyu Co. Ltd. | | |
| | |
| | |
Matsuyafoods Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Megmilk Snow Brand Co. Ltd. | | |
| | |
Meiko Electronics Co. Ltd. | | |
Meisei Industrial Co. Ltd. | | |
MEITEC Group Holdings, Inc. | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
35
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
Mie Kotsu Group Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Miroku Jyoho Service Co. Ltd. | | |
| | |
| | |
Mitsubishi Estate Logistics REIT Investment Corp. | | |
Mitsubishi Logisnext Co. Ltd. | | |
Mitsubishi Pencil Co. Ltd. | | |
Mitsubishi Research Institute, Inc. | | |
Mitsubishi Shokuhin Co. Ltd. | | |
| | |
Mitsui DM Sugar Holdings Co. Ltd. | | |
| | |
Mitsui-Soko Holdings Co. Ltd. | | |
Mitsuuroko Group Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
Mochida Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
Moriroku Holdings Co. Ltd. | | |
| | |
| | |
| | |
Musashi Seimitsu Industry Co. Ltd. | | |
| | |
| | |
| | |
| | |
Nagatanien Holdings Co. Ltd. | | |
| | |
| | |
Namura Shipbuilding Co. Ltd. | | |
| | |
NEC Capital Solutions Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nihon Parkerizing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nippon Densetsu Kogyo Co. Ltd. | | |
Nippon Fine Chemical Co. Ltd. | | |
| | |
Nippon Kanzai Holdings Co. Ltd. | | |
Nippon Light Metal Holdings Co. Ltd. | | |
Nippon Paper Industries Co. Ltd. | | |
| | |
Nippon Parking Development Co. Ltd., Class C | | |
NIPPON REIT Investment Corp. | | |
| | |
| | |
Nippon Sheet Glass Co. Ltd. * | | |
| | |
| | |
| | |
Nippon Yakin Kogyo Co. Ltd. | | |
Nishimatsu Construction Co. Ltd. | | |
Nishimatsuya Chain Co. Ltd. | | |
Nishi-Nippon Financial Holdings, Inc. | | |
| | |
| | |
Nissei ASB Machine Co. Ltd. | | |
| | |
Nisshin Oillio Group Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nomura Micro Science Co. Ltd. (a) | | |
| | |
| | |
| | |
| | |
| | |
NS United Kaiun Kaisha Ltd. | | |
| | |
| | |
NTT UD REIT Investment Corp. | | |
| | |
| | |
| | |
| | |
| | |
Oisix ra daichi, Inc. *(a) | | |
| | |
| | |
| | |
| | |
Okasan Securities Group, Inc. | | |
Oki Electric Industry Co. Ltd. | | |
Okinawa Cellular Telephone Co. | | |
Okinawa Electric Power Co., Inc. | | |
Okinawa Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Osaka Organic Chemical Industry Ltd. | | |
| | |
| | |
OSAKA Titanium Technologies Co. Ltd. | | |
36
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
Pacific Industrial Co. Ltd. | | |
| | |
PAL GROUP Holdings Co. Ltd. | | |
Paramount Bed Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Plus Alpha Consulting Co. Ltd. | | |
| | |
| | |
| | |
Prestige International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rheon Automatic Machinery Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ryoyo Ryosan Holdings, Inc. | | |
| | |
| | |
Saibu Gas Holdings Co. Ltd. | | |
| | |
Sakai Chemical Industry Co. Ltd. | | |
Sakai Moving Service Co. Ltd. | | |
| | |
| | |
Sakura Internet, Inc. (a) | | |
| | |
| | |
Samty Residential Investment Corp. | | |
San ju San Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Sanki Engineering Co. Ltd. | | |
| | |
Sanyo Chemical Industries Ltd. | | |
| | |
Sanyo Electric Railway Co. Ltd. | | |
Sanyo Special Steel Co. Ltd. | | |
| | |
| | |
SBI Sumishin Net Bank Ltd. | | |
| | |
| | |
| | |
Seikitokyu Kogyo Co. Ltd. | | |
| | |
| | |
| | |
Senko Group Holdings Co. Ltd. | | |
| | |
Senshu Ikeda Holdings, Inc. | | |
Septeni Holdings Co. Ltd. | | |
| | |
Shibaura Machine Co. Ltd. | | |
Shibaura Mechatronics Corp. | | |
Shibusawa Warehouse Co. Ltd. | | |
| | |
| | |
| | |
Shikoku Kasei Holdings Corp. | | |
Shima Seiki Manufacturing Ltd. | | |
Shin Nippon Air Technologies Co. Ltd. | | |
Shin Nippon Biomedical Laboratories Ltd. (a) | | |
Shinagawa Refractories Co. Ltd. | | |
Shin-Etsu Polymer Co. Ltd. | | |
| | |
Shinmaywa Industries Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sinanen Holdings Co. Ltd. | | |
Sinfonia Technology Co. Ltd. | | |
| | |
| | |
SKY Perfect JSAT Holdings, Inc. | | |
| | |
Softcreate Holdings Corp. | | |
SOSiLA Logistics REIT, Inc. | | |
| | |
| | |
| | |
St. Marc Holdings Co. Ltd. | | |
Star Asia Investment Corp. | | |
| | |
| | |
Starts Proceed Investment Corp. | | |
| | |
| | |
| | |
| | |
Sumiseki Holdings, Inc. (a) | | |
Sumitomo Densetsu Co. Ltd. | | |
Sumitomo Mitsui Construction Co. Ltd. | | |
Sumitomo Osaka Cement Co. Ltd. | | |
| | |
Sumitomo Seika Chemicals Co. Ltd. | | |
Sumitomo Warehouse Co. Ltd. | | |
| | |
Sun Frontier Fudousan Co. Ltd. | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
37
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
Tachibana Eletech Co. Ltd. | | |
| | |
| | |
Taihei Dengyo Kaisha Ltd. | | |
| | |
| | |
Takamatsu Construction Group Co. Ltd. | | |
| | |
Takara Leben Real Estate Investment Corp. | | |
| | |
Takasago International Corp. | | |
Takasago Thermal Engineering Co. Ltd. | | |
Takeuchi Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Tatsuta Electric Wire & Cable Co. Ltd. * | | |
| | |
| | |
Teikoku Electric Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tokai Tokyo Financial Holdings, Inc. | | |
| | |
Tokushu Tokai Paper Co. Ltd. | | |
| | |
Tokyo Electron Device Ltd. | | |
Tokyo Kiraboshi Financial Group, Inc. | | |
Tokyo Steel Manufacturing Co. Ltd. | | |
| | |
Tokyu Construction Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Torii Pharmaceutical Co. Ltd. | | |
Torishima Pump Manufacturing Co. Ltd. | | |
| | |
Tosei REIT Investment Corp. | | |
| | |
| | |
| | |
| | |
| | |
Towa Pharmaceutical Co. Ltd. | | |
Toyo Construction Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tri Chemical Laboratories, Inc. | | |
| | |
| | |
Tsubaki Nakashima Co. Ltd. | | |
| | |
Tsuburaya Fields Holdings, Inc. (a) | | |
| | |
Tsukishima Holdings Co. Ltd. | | |
Tsurumi Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Super Markets Holdings, Inc. (a) | | |
Universal Entertainment Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Warabeya Nichiyo Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Yahagi Construction Co. Ltd. | | |
YAKUODO Holdings Co. Ltd. | | |
| | |
Yamae Group Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Yodogawa Steel Works Ltd. | | |
Yokogawa Bridge Holdings Corp. | | |
| | |
| | |
| | |
| | |
Yoshinoya Holdings Co. Ltd. (a) | | |
38
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
ZERIA Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
|
|
| | |
AMG Critical Materials NV | | |
| | |
| | |
| | |
| | |
| | |
Eurocommercial Properties NV | | |
| | |
| | |
| | |
Just Eat Takeaway.com NV * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Oceania Healthcare Ltd. * | | |
Precinct Properties Group | | |
| | |
SKY Network Television Ltd. | | |
| | |
Summerset Group Holdings Ltd. | | |
| | |
Vital Healthcare Property Trust | | |
| | |
|
|
Aker Carbon Capture ASA * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Cavendish Hydrogen ASA *(a) | | |
Crayon Group Holding ASA * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nordic Semiconductor ASA * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Wilh Wilhelmsen Holding ASA, Class A | | |
| | |
|
|
| | |
| | |
| | |
Bank Handlowy w Warszawie SA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Jastrzebska Spolka Weglowa SA * | | |
| | |
| | |
| | |
PGE Polska Grupa Energetyczna SA * | | |
Tauron Polska Energia SA * | | |
| | |
| | |
|
|
| | |
Banco Comercial Portugues SA, Class R | | |
Corticeira Amorim SGPS SA | | |
CTT-Correios de Portugal SA | | |
Greenvolt-Energias Renovaveis SA * | | |
| | |
| | |
| | |
REN - Redes Energeticas Nacionais SGPS SA | | |
Semapa-Sociedade de Investimento e Gestao | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
39
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
|
|
| | |
| | |
Advanced Nano Products Co. Ltd. | | |
Advanced Process Systems Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Bukwang Pharmaceutical Co. Ltd. * | | |
| | |
| | |
Cellivery Therapeutics, Inc. *(b) | | |
| | |
Chong Kun Dang Pharmaceutical Corp. | | |
| | |
| | |
| | |
CMG Pharmaceutical Co. Ltd. * | | |
| | |
| | |
| | |
Creative & Innovative System * | | |
| | |
Daeduck Electronics Co. Ltd. | | |
Daejoo Electronic Materials Co. Ltd. * | | |
| | |
| | |
Daewoong Pharmaceutical Co. Ltd. | | |
Daishin Securities Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Dong-A Socio Holdings Co. Ltd. | | |
| | |
Dongjin Semichem Co. Ltd. | | |
DongKook Pharmaceutical Co. Ltd. | | |
Dongkuk Steel Mill Co. Ltd. | | |
| | |
| | |
Doosan Fuel Cell Co. Ltd. * | | |
| | |
| | |
| | |
| | |
Duk San Neolux Co. Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
ESR Kendall Square REIT Co. Ltd. | | |
| | |
Eugene Investment & Securities Co. Ltd. | | |
Eugene Technology Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Grand Korea Leisure Co. Ltd. | | |
Green Cross Holdings Corp. | | |
| | |
| | |
| | |
| | |
Hanall Biopharma Co. Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hanwha General Insurance Co. Ltd. | | |
Hanwha Investment & Securities Co. Ltd. * | | |
| | |
| | |
HD Hyundai Construction Equipment Co. Ltd. | | |
HD Hyundai Electric Co. Ltd. | | |
| | |
HDC Hyundai Development Co-Engineering & Construction, Class E | | |
| | |
| | |
HLB Life Science Co. Ltd. * | | |
HLB Therapeutics Co. Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
Hyosung Advanced Materials Corp. | | |
| | |
Hyosung Heavy Industries Corp. | | |
| | |
Hyundai Bioscience Co. Ltd. * | | |
Hyundai Elevator Co. Ltd. | | |
| | |
| | |
Hyundai Home Shopping Network Corp. | | |
| | |
Il Dong Pharmaceutical Co. Ltd. * | | |
| | |
| | |
Innox Advanced Materials Co. Ltd. | | |
Intellian Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
JB Financial Group Co. Ltd. | | |
| | |
| | |
Jusung Engineering Co. Ltd. | | |
| | |
| | |
| | |
40
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
KEPCO Engineering & Construction Co., Inc. | | |
| | |
| | |
| | |
KIWOOM Securities Co. Ltd. | | |
| | |
Koh Young Technology, Inc. | | |
| | |
| | |
Korea Electric Terminal Co. Ltd. | | |
| | |
Korea Petrochemical Ind Co. Ltd. | | |
| | |
| | |
Kuk-il Paper Manufacturing Co. Ltd. *(b) | | |
| | |
| | |
Lake Materials Co. Ltd. * | | |
| | |
| | |
| | |
LigaChem Biosciences, Inc. * | | |
| | |
| | |
Lotte Tour Development Co. Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mezzion Pharma Co. Ltd. * | | |
| | |
Myoung Shin Industrial Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
NICE Information Service Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
People & Technology, Inc. * | | |
| | |
| | |
| | |
PI Advanced Materials Co. Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
Sam Chun Dang Pharm Co. Ltd. | | |
| | |
| | |
Sambu Engineering & Construction Co. Ltd. * | | |
Samwha Capacitor Co. Ltd. | | |
| | |
| | |
SeAH Besteel Holdings Corp. | | |
Sebang Global Battery Co. Ltd. | | |
| | |
| | |
Seoul Semiconductor Co. Ltd. | | |
| | |
| | |
Shin Poong Pharmaceutical Co. Ltd. * | | |
Shinhan Alpha REIT Co. Ltd. | | |
Shinsung Delta Tech Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
SM Entertainment Co. Ltd. | | |
| | |
| | |
| | |
Songwon Industrial Co. Ltd. | | |
| | |
| | |
Soulbrain Holdings Co. Ltd. | | |
| | |
| | |
Sungeel Hitech Co. Ltd. * | | |
| | |
| | |
Taekwang Industrial Co. Ltd. | | |
Taihan Electric Wire Co. Ltd. * | | |
| | |
| | |
| | |
Tokai Carbon Korea Co. Ltd. | | |
| | |
| | |
Vaxcell-Bio Therapeutics Co. Ltd. * | | |
| | |
| | |
W-Scope Chungju Plant Co. Ltd. * | | |
| | |
Youlchon Chemical Co. Ltd. | | |
| | |
Youngone Holdings Co. Ltd. | | |
Yuanta Securities Korea Co. Ltd. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Cromwell European Real Estate Investment Trust | | |
Digital Core REIT Management Pte. Ltd. | | |
Eagle Hospitality Trust *(b) | | |
| | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
41
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Far East Hospitality Trust | | |
First Real Estate Investment Trust | | |
| | |
Frasers Centrepoint Trust | | |
Golden Agri-Resources Ltd. | | |
| | |
Keppel Infrastructure Trust | | |
Lendlease Global Commercial REIT | | |
OUE Real Estate Investment Trust | | |
| | |
Parkway Life Real Estate Investment Trust | | |
Raffles Medical Group Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Atresmedia Corp. de Medios de Comunicacion SA | | |
Cia de Distribucion Integral Logista Holdings SA | | |
| | |
Construcciones y Auxiliar de Ferrocarriles SA | | |
Distribuidora Internacional de Alimentacion SA * | | |
Ence Energia y Celulosa SA | | |
| | |
| | |
| | |
Global Dominion Access SA | | |
| | |
Inmobiliaria Colonial Socimi SA | | |
Laboratorios Farmaceuticos Rovi SA | | |
Lar Espana Real Estate Socimi SA | | |
| | |
Linea Directa Aseguradora SA Cia de Seguros y Reaseguros | | |
Melia Hotels International SA | | |
| | |
| | |
| | |
Prosegur Cia de Seguridad SA | | |
| | |
Solaria Energia y Medio Ambiente SA * | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Atrium Ljungberg AB, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Cibus Nordic Real Estate AB publ | | |
| | |
| | |
Corem Property Group AB, B Shares | | |
| | |
| | |
Electrolux AB, B Shares * | | |
Electrolux Professional AB, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hufvudstaden AB, A Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
Lagercrantz Group AB, B Shares | | |
| | |
| | |
| | |
| | |
| | |
Modern Times Group MTG AB, B Shares * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Platzer Fastigheter Holding AB, B Shares | | |
| | |
| | |
Samhallsbyggnadsbolaget i Norden AB (a) | | |
42
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Scandic Hotels Group AB * | | |
| | |
| | |
| | |
| | |
| | |
Storskogen Group AB, B Shares | | |
| | |
| | |
| | |
Truecaller AB, B Shares (a) | | |
Vitec Software Group AB, B Shares | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Basilea Pharmaceutica AG * | | |
| | |
Bossard Holding AG, Class A | | |
| | |
Burckhardt Compression Holding AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Meyer Burger Technology AG *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Schweiter Technologies AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
St. Galler Kantonalbank AG | | |
| | |
| | |
Swissquote Group Holding SA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Aston Martin Lagonda Global Holdings PLC * | | |
Auction Technology Group PLC * | | |
Babcock International Group PLC | | |
| | |
Balanced Commercial Property Trust Ltd. | | |
| | |
Bank of Georgia Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
Bytes Technology Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Crest Nicholson Holdings PLC | | |
| | |
| | |
| | |
| | |
| | |
Direct Line Insurance Group PLC | | |
Diversified Energy Co. PLC | | |
| | |
| | |
| | |
| | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
43
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Great Portland Estates PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
International Distribution Services PLC | | |
International Workplace Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Jupiter Fund Management PLC | | |
| | |
| | |
| | |
| | |
Liontrust Asset Management PLC | | |
LondonMetric Property PLC | | |
| | |
| | |
Mitchells & Butlers PLC * | | |
| | |
| | |
| | |
| | |
| | |
Morgan Advanced Materials PLC | | |
| | |
| | |
Network International Holdings PLC * | | |
| | |
| | |
| | |
Oxford Nanopore Technologies PLC * | | |
| | |
| | |
Paragon Banking Group PLC | | |
| | |
| | |
| | |
Picton Property Income Ltd. | | |
| | |
| | |
| | |
Primary Health Properties PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Spire Healthcare Group PLC | | |
Spirent Communications PLC * | | |
| | |
Supermarket Income REIT PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Vanquis Banking Group PLC | | |
| | |
| | |
| | |
| | |
| | |
Watches of Switzerland Group PLC * | | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $3,744,731,712) | |
|
PREFERRED STOCKS 0.1% OF NET ASSETS |
|
|
Draegerwerk AG & Co. KGaA | | |
|
44
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
|
Danieli & C Officine Meccaniche SpA - RSP | | |
|
|
Daishin Securities Co. Ltd. | | |
|
|
| | |
Total Preferred Stocks
(Cost $2,827,436) | |
|
WARRANTS 0.0% OF NET ASSETS |
|
|
|
| | |
|
|
|
| | |
|
| | |
| | |
| |
| | |
SHORT-TERM INVESTMENTS 1.9% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (c) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (c)(d) | | |
| | |
Total Short-Term Investments
(Cost $81,085,305) | |
| | |
Total Investments in Securities
(Cost $3,828,644,453) | |
| | |
| | |
| | |
| | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
MSCI EAFE Index, expires 09/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $70,483,534. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Real Estate Investment Trust |
| Risparmio (Savings Shares) |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
45
Schwab International Small-Cap Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at August 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
46
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Small-Cap Equity ETF
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $3,828,644,453) including securities on loan of $70,483,534 | | |
| | |
Foreign currency, at value (cost $3,191,480) | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Income from securities on loan | | |
Variation margin on future contracts | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
Foreign capital gains tax | | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
47
Schwab International Small-Cap Equity ETF
Statement of Operations
For the period September 1, 2023 through August 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $12,942,656) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated issuers (net of foreign capital gains tax paid of $99) | | |
Net realized gains on sales of in-kind redemptions - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
Net realized losses on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers (net of change in foreign capital gains tax of $15,931) | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Professional fees associated with the filing of foreign withholding tax claims in the European Union are deemed to be non-contingent and non-routine expenses of the fund (see financial notes 2(d) and 4 for additional information). |
48
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Small-Cap Equity ETF
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
49
Schwab Emerging Markets Equity ETF
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| Calculated based on the average shares outstanding during the period. |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Effective February 25, 2020, the annual operating expense ratio was reduced to 0.11%. The ratio presented for the period ended August 31, 2020, is a blended ratio. |
| Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
50
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024
| | |
COMMON STOCKS 98.0% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
| | |
B3 SA - Brasil Bolsa Balcao | | |
| | |
| | |
| | |
Banco Santander Brasil SA | | |
BB Seguridade Participacoes SA | | |
| | |
Caixa Seguridade Participacoes SA | | |
| | |
Centrais Eletricas Brasileiras SA | | |
Cia de Saneamento Basico do Estado de Sao Paulo SABESP | | |
Cia Energetica de Minas Gerais | | |
Cia Paranaense de Energia - Copel | | |
Cia Siderurgica Nacional SA | | |
| | |
| | |
| | |
| | |
Diagnosticos da America SA * | | |
| | |
| | |
| | |
| | |
| | |
GPS Participacoes e Empreendimentos SA | | |
| | |
Hapvida Participacoes e Investimentos SA * | | |
| | |
Intelbras SA Industria de Telecomunicacao Eletronica Brasileira | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Multiplan Empreendimentos Imobiliarios SA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sendas Distribuidora SA * | | |
| | |
Smartfit Escola de Ginastica e Danca SA | | |
| | |
| | |
| | |
| | |
| | |
Transmissora Alianca de Energia Eletrica SA | | |
Ultrapar Participacoes SA | | |
Usinas Siderurgicas de Minas Gerais SA Usiminas | | |
| | |
Vamos Locacao de Caminhoes Maquinas e Equipamentos SA | | |
| | |
| | |
| | |
|
|
Aguas Andinas SA, Class A | | |
| | |
Banco de Credito e Inversiones SA | | |
| | |
| | |
| | |
| | |
Cia Cervecerias Unidas SA | | |
Cia Sud Americana de Vapores SA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sociedad de Inversiones Oro Blanco SA | | |
| | |
|
|
360 Security Technology, Inc., A Shares | | |
37 Interactive Entertainment Network Technology Group Co. Ltd., A Shares | | |
| | |
| | |
ACM Research Shanghai, Inc., Class A | | |
Advanced Micro-Fabrication Equipment, Inc. China, A Shares | | |
AECC Aero-Engine Control Co. Ltd., A Shares | | |
AECC Aviation Power Co. Ltd., A Shares | | |
Agricultural Bank of China Ltd., A Shares | | |
Agricultural Bank of China Ltd., H Shares | | |
Aier Eye Hospital Group Co. Ltd., A Shares | | |
Air China Ltd., A Shares * | | |
Air China Ltd., H Shares * | | |
| | |
| | |
Alibaba Group Holding Ltd. | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
51
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Alibaba Health Information Technology Ltd. * | | |
Alibaba Pictures Group Ltd. * | | |
All Winner Technology Co. Ltd., A Shares | | |
| | |
Aluminum Corp. of China Ltd., A Shares | | |
Aluminum Corp. of China Ltd., H Shares | | |
Amlogic Shanghai Co. Ltd., A Shares | | |
An Hui Wenergy Co. Ltd., A Shares | | |
Angang Steel Co. Ltd., H Shares * | | |
Angel Yeast Co. Ltd., A Shares | | |
Angelalign Technology, Inc. | | |
Anhui Anke Biotechnology Group Co. Ltd., A Shares | | |
Anhui Conch Cement Co. Ltd., A Shares | | |
Anhui Conch Cement Co. Ltd., H Shares | | |
Anhui Expressway Co. Ltd., H Shares | | |
Anhui Gujing Distillery Co. Ltd., A Shares | | |
Anhui Jianghuai Automobile Group Corp. Ltd., Class A | | |
Anhui Kouzi Distillery Co. Ltd., A Shares | | |
Anhui Yingjia Distillery Co. Ltd., A Shares | | |
Anhui Zhongding Sealing Parts Co. Ltd., A Shares | | |
Anjoy Foods Group Co. Ltd., A Shares | | |
ANTA Sports Products Ltd. | | |
Apeloa Pharmaceutical Co. Ltd., A Shares | | |
Asymchem Laboratories Tianjin Co. Ltd., A Shares | | |
Autobio Diagnostics Co. Ltd., A Shares | | |
| | |
Avary Holding Shenzhen Co. Ltd., A Shares | | |
AVIC Industry-Finance Holdings Co. Ltd., A Shares | | |
AviChina Industry & Technology Co. Ltd., H Shares | | |
| | |
BAIC BluePark New Energy Technology Co. Ltd., A Shares * | | |
BAIC Motor Corp. Ltd., H Shares | | |
| | |
Bank of Beijing Co. Ltd., A Shares | | |
Bank of Changsha Co. Ltd., A Shares | | |
Bank of Chengdu Co. Ltd., A Shares | | |
Bank of China Ltd., A Shares | | |
Bank of China Ltd., H Shares | | |
Bank of Communications Co. Ltd., A Shares | | |
Bank of Communications Co. Ltd., H Shares | | |
Bank of Guiyang Co. Ltd., A Shares | | |
Bank of Hangzhou Co. Ltd., A Shares | | |
Bank of Jiangsu Co. Ltd., A Shares | | |
Bank of Nanjing Co. Ltd., A Shares | | |
Bank of Ningbo Co. Ltd., A Shares | | |
Bank of Qingdao Co. Ltd., A Shares | | |
Bank of Shanghai Co. Ltd., A Shares | | |
| | |
Bank of Zhengzhou Co. Ltd., A Shares * | | |
Baoshan Iron & Steel Co. Ltd., A Shares | | |
| | |
| | |
| | |
Beijing Capital Eco-Environment Protection Group Co. Ltd., A Shares | | |
Beijing Capital International Airport Co. Ltd., H Shares * | | |
Beijing Dabeinong Technology Group Co. Ltd., A Shares | | |
Beijing Easpring Material Technology Co. Ltd., A Shares | | |
Beijing E-Hualu Information Technology Co. Ltd., A Shares * | | |
Beijing Enlight Media Co. Ltd., A Shares | | |
Beijing Enterprises Holdings Ltd. | | |
Beijing Enterprises Water Group Ltd. | | |
Beijing Jetsen Technology Co. Ltd., A Shares * | | |
Beijing Jingneng Clean Energy Co. Ltd., H Shares | | |
Beijing Kingsoft Office Software, Inc., A Shares | | |
Beijing New Building Materials PLC, A Shares | | |
Beijing Orient National Communication Science & Technology Co. Ltd., A Shares * | | |
Beijing Originwater Technology Co. Ltd., A Shares | | |
Beijing Roborock Technology Co. Ltd., A Shares | | |
Beijing Shiji Information Technology Co. Ltd., A Shares | | |
Beijing Shougang Co. Ltd., A Shares | | |
Beijing Shunxin Agriculture Co. Ltd., A Shares * | | |
Beijing Sinnet Technology Co. Ltd., A Shares | | |
Beijing Tiantan Biological Products Corp. Ltd., A Shares | | |
Beijing Tongrentang Co. Ltd., A Shares | | |
Beijing Ultrapower Software Co. Ltd., A Shares | | |
Beijing United Information Technology Co. Ltd., A Shares | | |
Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., A Shares | | |
Beijing Yanjing Brewery Co. Ltd., A Shares | | |
Beijing Yuanliu Hongyuan Electronic Technology Co. Ltd., A Shares | | |
Beijing Zhong Ke San Huan High-Tech Co. Ltd., A Shares | | |
Beijing-Shanghai High Speed Railway Co. Ltd., A Shares | | |
Bethel Automotive Safety Systems Co. Ltd., A Shares | | |
Bilibili, Inc., Z Shares * | | |
Bloomage Biotechnology Corp. Ltd., A Shares | | |
Blue Moon Group Holdings Ltd. | | |
52
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Bluefocus Intelligent Communications Group Co. Ltd., A Shares | | |
BOC International China Co. Ltd., A Shares | | |
BOE Technology Group Co. Ltd., A Shares | | |
BOE Technology Group Co. Ltd., B Shares | | |
Bosideng International Holdings Ltd. | | |
Bright Dairy & Food Co. Ltd., A Shares | | |
BTG Hotels Group Co. Ltd., A Shares | | |
| | |
| | |
BYD Electronic International Co. Ltd. | | |
By-health Co. Ltd., A Shares | | |
C&D International Investment Group Ltd. | | |
C&S Paper Co. Ltd., A Shares | | |
Caida Securities Co. Ltd., A Shares | | |
Caitong Securities Co. Ltd., A Shares | | |
Cambricon Technologies Corp. Ltd., Class A * | | |
Canmax Technologies Co. Ltd., A Shares | | |
CanSino Biologics, Inc., H Shares *(a) | | |
Capital Securities Co. Ltd., Class A | | |
Cathay Biotech, Inc., Class A | | |
CECEP Solar Energy Co. Ltd., A Shares | | |
CECEP Wind-Power Corp., A Shares | | |
Central China Securities Co. Ltd., A Shares | | |
CETC Cyberspace Security Technology Co. Ltd., A Shares | | |
CGN Power Co. Ltd., H Shares | | |
Changchun High-Tech Industry Group Co. Ltd., A Shares | | |
Changjiang Securities Co. Ltd., A Shares | | |
Changzhou Xingyu Automotive Lighting Systems Co. Ltd., A Shares | | |
Chaozhou Three-Circle Group Co. Ltd., A Shares | | |
Chengdu Xingrong Environment Co. Ltd., A Shares | | |
Chengxin Lithium Group Co. Ltd., A Shares | | |
Chifeng Jilong Gold Mining Co. Ltd., Class A | | |
China Baoan Group Co. Ltd., A Shares | | |
China Bohai Bank Co. Ltd., Class H * | | |
China Cinda Asset Management Co. Ltd., H Shares | | |
China CITIC Bank Corp. Ltd., A Shares | | |
China CITIC Bank Corp. Ltd., H Shares | | |
China CITIC Financial Asset Management Co. Ltd., H Shares * | | |
China Coal Energy Co. Ltd., A Shares | | |
China Coal Energy Co. Ltd., H Shares | | |
China Communications Services Corp. Ltd., H Shares | | |
China Conch Venture Holdings Ltd. | | |
China Construction Bank Corp., A Shares | | |
China Construction Bank Corp., H Shares | | |
China CSSC Holdings Ltd., A Shares | | |
| | |
China Eastern Airlines Corp. Ltd., A Shares * | | |
China Eastern Airlines Corp. Ltd., H Shares * | | |
China Energy Engineering Corp. Ltd., A Shares | | |
China Energy Engineering Corp. Ltd., H Shares | | |
China Enterprise Co. Ltd., Class A | | |
China Everbright Bank Co. Ltd., A Shares | | |
China Everbright Bank Co. Ltd., H Shares (a) | | |
China Everbright Environment Group Ltd. | | |
| | |
| | |
China Film Co. Ltd., A Shares | | |
China Galaxy Securities Co. Ltd., A Shares | | |
China Galaxy Securities Co. Ltd., H Shares | | |
| | |
China Great Wall Securities Co. Ltd., A Shares | | |
China Greatwall Technology Group Co. Ltd., A Shares * | | |
China Green Electricity Investment of Tianjin Co. Ltd., A Shares | | |
China Hongqiao Group Ltd. | | |
China International Capital Corp. Ltd., A Shares | | |
China International Capital Corp. Ltd., H Shares | | |
China International Marine Containers Group Co. Ltd., H Shares | | |
China Jinmao Holdings Group Ltd. | | |
China Jushi Co. Ltd., A Shares | | |
China Lesso Group Holdings Ltd. | | |
China Life Insurance Co. Ltd., H Shares | | |
| | |
China Longyuan Power Group Corp. Ltd., H Shares | | |
China Medical System Holdings Ltd. | | |
China Meheco Group Co. Ltd., A Shares | | |
China Meidong Auto Holdings Ltd. | | |
China Mengniu Dairy Co. Ltd. | | |
China Merchants Bank Co. Ltd., A Shares | | |
China Merchants Bank Co. Ltd., H Shares | | |
China Merchants Energy Shipping Co. Ltd., A Shares | | |
China Merchants Expressway Network & Technology Holdings Co. Ltd., A Shares | | |
China Merchants Port Holdings Co. Ltd. | | |
China Merchants Securities Co. Ltd., A Shares | | |
China Merchants Securities Co. Ltd., H Shares | | |
China Merchants Shekou Industrial Zone Holdings Co. Ltd., A Shares | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
53
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
China Minsheng Banking Corp. Ltd., A Shares | | |
China Minsheng Banking Corp. Ltd., H Shares | | |
China National Accord Medicines Corp. Ltd., B Shares | | |
China National Building Material Co. Ltd., H Shares | | |
China National Chemical Engineering Co. Ltd., A Shares | | |
China National Medicines Corp. Ltd., A Shares | | |
China National Nuclear Power Co. Ltd., A Shares | | |
China National Software & Service Co. Ltd., A Shares * | | |
China Northern Rare Earth Group High-Tech Co. Ltd., A Shares | | |
China Oilfield Services Ltd., A Shares | | |
China Oilfield Services Ltd., H Shares | | |
China Overseas Land & Investment Ltd. | | |
China Pacific Insurance Group Co. Ltd., A Shares | | |
China Pacific Insurance Group Co. Ltd., H Shares | | |
China Petroleum & Chemical Corp., A Shares | | |
China Petroleum & Chemical Corp., H Shares | | |
China Power International Development Ltd. | | |
China Railway Group Ltd., A Shares | | |
China Railway Group Ltd., H Shares | | |
China Railway Signal & Communication Corp. Ltd., A Shares | | |
China Railway Signal & Communication Corp. Ltd., H Shares | | |
China Rare Earth Resources & Technology Co. Ltd., A Shares | | |
China Reinsurance Group Corp., H Shares | | |
China Resources Beer Holdings Co. Ltd. | | |
China Resources Boya Bio-pharmaceutical Group Co. Ltd., A Shares | | |
China Resources Building Materials Technology Holdings Ltd. | | |
China Resources Double Crane Pharmaceutical Co. Ltd., A Shares | | |
China Resources Gas Group Ltd. | | |
China Resources Land Ltd. | | |
China Resources Microelectronics Ltd., A Shares | | |
China Resources Mixc Lifestyle Services Ltd. | | |
China Resources Pharmaceutical Group Ltd. | | |
China Resources Power Holdings Co. Ltd. | | |
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., A Shares | | |
China Ruyi Holdings Ltd. * | | |
China Shenhua Energy Co. Ltd., A Shares | | |
| | |
China Shenhua Energy Co. Ltd., H Shares | | |
China South Publishing & Media Group Co. Ltd., A Shares | | |
China Southern Airlines Co. Ltd., A Shares * | | |
China Southern Airlines Co. Ltd., H Shares * | | |
China Southern Power Grid Energy Efficiency&Clean Energy Co. Ltd., A Shares | | |
China State Construction Engineering Corp. Ltd., A Shares | | |
China State Construction International Holdings Ltd. | | |
China Suntien Green Energy Corp. Ltd., H Shares | | |
China Taiping Insurance Holdings Co. Ltd. | | |
China Three Gorges Renewables Group Co. Ltd., A Shares | | |
China Tourism Group Duty Free Corp. Ltd., A Shares | | |
China Tourism Group Duty Free Corp. Ltd., Class H (a) | | |
China Tower Corp. Ltd., H Shares | | |
China Traditional Chinese Medicine Holdings Co. Ltd. * | | |
China TransInfo Technology Co. Ltd., A Shares | | |
China United Network Communications Ltd., A Shares | | |
China Vanke Co. Ltd., A Shares * | | |
China Vanke Co. Ltd., H Shares *(a) | | |
China World Trade Center Co. Ltd., A Shares | | |
China XD Electric Co. Ltd., Class A | | |
China Yangtze Power Co. Ltd., A Shares | | |
China Zhenhua Group Science & Technology Co. Ltd., A Shares | | |
China Zheshang Bank Co. Ltd., A Shares | | |
Chinalin Securities Co. Ltd., A Shares | | |
Chinese Universe Publishing & Media Group Co. Ltd., A Shares | | |
Chongqing Brewery Co. Ltd., A Shares | | |
Chongqing Changan Automobile Co. Ltd., A Shares | | |
Chongqing Changan Automobile Co. Ltd., B Shares | | |
Chongqing Fuling Zhacai Group Co. Ltd., A Shares | | |
Chongqing Rural Commercial Bank Co. Ltd., H Shares | | |
Chongqing Taiji Industry Group Co. Ltd., Class A | | |
Chongqing Zhifei Biological Products Co. Ltd., A Shares | | |
| | |
Citic Pacific Special Steel Group Co. Ltd., A Shares | | |
CITIC Securities Co. Ltd., A Shares | | |
CITIC Securities Co. Ltd., H Shares | | |
CMOC Group Ltd., A Shares | | |
CMOC Group Ltd., H Shares | | |
54
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
CNGR Advanced Material Co. Ltd., A Shares | | |
CNOOC Energy Technology & Services Ltd., A Shares | | |
CNPC Capital Co. Ltd., A Shares | | |
COFCO Sugar Holding Co. Ltd., A Shares | | |
Contemporary Amperex Technology Co. Ltd., A Shares | | |
COSCO SHIPPING Development Co. Ltd., A Shares | | |
COSCO SHIPPING Development Co. Ltd., H Shares | | |
COSCO SHIPPING Energy Transportation Co. Ltd., A Shares | | |
COSCO SHIPPING Energy Transportation Co. Ltd., H Shares | | |
COSCO SHIPPING Holdings Co. Ltd., A Shares | | |
COSCO SHIPPING Holdings Co. Ltd., H Shares | | |
COSCO SHIPPING Ports Ltd. | | |
Country Garden Holdings Co. Ltd. *(b) | | |
Country Garden Services Holdings Co. Ltd. | | |
CRRC Corp. Ltd., A Shares | | |
CRRC Corp. Ltd., H Shares | | |
CSC Financial Co. Ltd., A Shares | | |
CSC Financial Co. Ltd., H Shares | | |
CSG Holding Co. Ltd., A Shares | | |
CSG Holding Co. Ltd., B Shares | | |
CSPC Innovation Pharmaceutical Co. Ltd., Class A | | |
CSPC Pharmaceutical Group Ltd. | | |
CSSC Science & Technology Co. Ltd., Class A | | |
Daan Gene Co. Ltd., A Shares | | |
Dada Nexus Ltd., ADR *(a) | | |
Daqin Railway Co. Ltd., A Shares | | |
Daqo New Energy Corp., ADR * | | |
Datang International Power Generation Co. Ltd., H Shares | | |
DHC Software Co. Ltd., A Shares | | |
Dian Diagnostics Group Co. Ltd., A Shares | | |
Do-Fluoride New Materials Co. Ltd., A Shares | | |
Dong-E-E-Jiao Co. Ltd., A Shares | | |
Dongfang Electric Corp. Ltd., A Shares | | |
Dongfang Electric Corp. Ltd., H Shares | | |
Dongfeng Motor Group Co. Ltd., H Shares * | | |
Dongguan Development Holdings Co. Ltd., A Shares | | |
Dongguan Yiheda Automation Co. Ltd., Class A | | |
Dongxing Securities Co. Ltd., A Shares | | |
East Buy Holding Ltd. *(a) | | |
East Money Information Co. Ltd., A Shares | | |
Eastern Air Logistics Co. Ltd., A Shares * | | |
Eastroc Beverage Group Co. Ltd., A Shares | | |
Ecovacs Robotics Co. Ltd., A Shares | | |
| | |
Empyrean Technology Co. Ltd., Shares A | | |
| | |
ENN Natural Gas Co. Ltd., A Shares | | |
Eoptolink Technology, Inc. Ltd., Class A | | |
Eve Energy Co. Ltd., A Shares | | |
Everbright Securities Co. Ltd., A Shares | | |
Everdisplay Optronics Shanghai Co. Ltd., Class A * | | |
Eyebright Medical Technology Beijing Co. Ltd., Class A | | |
Fangda Carbon New Material Co. Ltd., A Shares | | |
| | |
Farasis Energy Gan Zhou Co. Ltd., Class A * | | |
FAW Jiefang Group Co. Ltd., A Shares | | |
Fiberhome Telecommunication Technologies Co. Ltd., A Shares | | |
Financial Street Holdings Co. Ltd., A Shares * | | |
First Capital Securities Co. Ltd., A Shares | | |
Flat Glass Group Co. Ltd., A Shares | | |
Flat Glass Group Co. Ltd., H Shares (a) | | |
Focus Media Information Technology Co. Ltd., A Shares | | |
Foshan Haitian Flavouring & Food Co. Ltd., A Shares | | |
| | |
Founder Securities Co. Ltd., A Shares | | |
Foxconn Industrial Internet Co. Ltd., A Shares | | |
Fujian Funeng Co. Ltd., A Shares | | |
Fujian Kuncai Material Technology Co. Ltd., Class A | | |
Fujian Sunner Development Co. Ltd., A Shares | | |
Full Truck Alliance Co. Ltd., ADR | | |
Fushun Special Steel Co. Ltd., Class A | | |
Fuyao Glass Industry Group Co. Ltd., A Shares | | |
Fuyao Glass Industry Group Co. Ltd., H Shares | | |
GalaxyCore, Inc., Class A | | |
Gan & Lee Pharmaceuticals Co. Ltd., A Shares | | |
Ganfeng Lithium Group Co. Ltd., A Shares | | |
Ganfeng Lithium Group Co. Ltd., H Shares (a) | | |
G-bits Network Technology Xiamen Co. Ltd., A Shares | | |
GCL System Integration Technology Co. Ltd., A Shares * | | |
GCL Technology Holdings Ltd. * | | |
GD Power Development Co. Ltd., A Shares | | |
GDS Holdings Ltd., A shares * | | |
Geely Automobile Holdings Ltd. | | |
| | |
| | |
Genscript Biotech Corp. * | | |
GF Securities Co. Ltd., A Shares | | |
GF Securities Co. Ltd., H Shares (a) | | |
Giant Biogene Holding Co. Ltd. | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
55
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Giant Network Group Co. Ltd., Class A | | |
GigaDevice Semiconductor, Inc., A Shares * | | |
Ginlong Technologies Co. Ltd., A Shares | | |
Glarun Technology Co. Ltd., A Shares | | |
| | |
Goke Microelectronics Co. Ltd., A Shares | | |
Goldwind Science & Technology Co. Ltd., A Shares | | |
Goldwind Science & Technology Co. Ltd., H Shares | | |
Goneo Group Co. Ltd., A Shares | | |
GoodWe Technologies Co. Ltd., A Shares | | |
Gotion High-tech Co. Ltd., A Shares | | |
Grandjoy Holdings Group Co. Ltd., A Shares * | | |
Great Wall Motor Co. Ltd., A Shares | | |
Great Wall Motor Co. Ltd., H Shares | | |
Gree Electric Appliances, Inc. of Zhuhai, Class A | | |
Greentown China Holdings Ltd. | | |
GRG Banking Equipment Co. Ltd., A Shares | | |
Guangdong Baolihua New Energy Stock Co. Ltd., A Shares | | |
Guangdong Electric Power Development Co. Ltd., B Shares | | |
Guangdong Golden Dragon Development, Inc., A Shares * | | |
Guangdong Haid Group Co. Ltd., A Shares | | |
Guangdong HEC Technology Holding Co. Ltd., A Shares | | |
Guangdong Investment Ltd. | | |
Guangdong Kinlong Hardware Products Co. Ltd., A Shares | | |
Guangdong Xinbao Electrical Appliances Holdings Co. Ltd., A Shares | | |
Guanghui Energy Co. Ltd., A Shares | | |
Guangshen Railway Co. Ltd., H Shares | | |
Guangxi Guiguan Electric Power Co. Ltd., A Shares | | |
Guangxi Liugong Machinery Co. Ltd., A Shares | | |
Guangzhou Automobile Group Co. Ltd., A Shares | | |
Guangzhou Automobile Group Co. Ltd., H Shares | | |
Guangzhou Baiyun International Airport Co. Ltd., Class A | | |
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., A Shares | | |
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., H Shares | | |
Guangzhou Development Group, Inc., Class A | | |
Guangzhou Great Power Energy & Technology Co. Ltd., Class A | | |
Guangzhou Haige Communications Group, Inc. Co., A Shares | | |
| | |
Guangzhou Kingmed Diagnostics Group Co. Ltd., A Shares | | |
Guangzhou Shiyuan Electronic Technology Co. Ltd., A Shares | | |
Guangzhou Tinci Materials Technology Co. Ltd., A Shares | | |
Guangzhou Wondfo Biotech Co. Ltd., A Shares | | |
Guangzhou Yuexiu Capital Holdings Group Co. Ltd., A Shares | | |
Guangzhou Zhujiang Brewery Co. Ltd., A Shares | | |
Guizhou Panjiang Refined Coal Co. Ltd., A Shares | | |
Guobo Electronics Co. Ltd., A Shares | | |
Guolian Securities Co. Ltd., A Shares | | |
Guosen Securities Co. Ltd., A Shares (b) | | |
Guosheng Financial Holding, Inc., A Shares * | | |
Guotai Junan Securities Co. Ltd., A Shares | | |
Guotai Junan Securities Co. Ltd., H Shares (a) | | |
Guoyuan Securities Co. Ltd., A Shares | | |
| | |
Haidilao International Holding Ltd. | | |
Haier Smart Home Co. Ltd., A Shares | | |
Haier Smart Home Co. Ltd., H Shares | | |
Hainan Airlines Holding Co. Ltd., Class A * | | |
Hainan Airport Infrastructure Co. Ltd., Class A * | | |
Hainan Drinda New Energy Technology Co. Ltd., A Shares | | |
Haisco Pharmaceutical Group Co. Ltd., A Shares | | |
Haitian International Holdings Ltd. | | |
Haitong Securities Co. Ltd., A Shares | | |
Haitong Securities Co. Ltd., H Shares | | |
Hang Zhou Great Star Industrial Co. Ltd., A Shares | | |
Hangzhou Binjiang Real Estate Group Co. Ltd., A Shares | | |
Hangzhou Chang Chuan Technology Co. Ltd., A Shares | | |
Hangzhou First Applied Material Co. Ltd., A Shares | | |
Hangzhou Iron & Steel Co., Class A | | |
Hangzhou Lion Microelectronics Co. Ltd., A Shares | | |
Hangzhou Oxygen Plant Group Co. Ltd., A Shares | | |
Hangzhou Robam Appliances Co. Ltd., A Shares | | |
Hangzhou Silan Microelectronics Co. Ltd., A Shares * | | |
Hangzhou Tigermed Consulting Co. Ltd., A Shares | | |
Hangzhou Tigermed Consulting Co. Ltd., H Shares (a) | | |
Han's Laser Technology Industry Group Co. Ltd., A Shares | | |
Hansoh Pharmaceutical Group Co. Ltd. | | |
56
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Haohua Chemical Science & Technology Co. Ltd., A Shares | | |
Harbin Boshi Automation Co. Ltd., A Shares | | |
Hebei Yangyuan Zhihui Beverage Co. Ltd., Class A | | |
Hefei Meiya Optoelectronic Technology, Inc., A Shares | | |
Heilongjiang Agriculture Co. Ltd., A Shares | | |
Henan Shenhuo Coal Industry & Electricity Power Co. Ltd., Class A | | |
Henan Shuanghui Investment & Development Co. Ltd., A Shares | | |
Hengan International Group Co. Ltd. | | |
Hengdian Group DMEGC Magnetics Co. Ltd., A Shares | | |
Hengli Petrochemical Co. Ltd., A Shares | | |
Hengtong Optic-electric Co. Ltd., A Shares | | |
Hengyi Petrochemical Co. Ltd., A Shares | | |
Hesteel Co. Ltd., A Shares | | |
Hisense Home Appliances Group Co. Ltd., Class A | | |
Hisense Home Appliances Group Co. Ltd., Class H | | |
Hisense Visual Technology Co. Ltd., Class A | | |
Hithink RoyalFlush Information Network Co. Ltd., A Shares | | |
HLA Group Corp. Ltd., Class A | | |
Hongta Securities Co. Ltd., A Shares | | |
Hopson Development Holdings Ltd. * | | |
Hoshine Silicon Industry Co. Ltd., A Shares | | |
Hoymiles Power Electronics, Inc., Class A | | |
Hoyuan Green Energy Co. Ltd., A Shares | | |
Hua Hong Semiconductor Ltd. | | |
Huaan Securities Co. Ltd., A Shares | | |
Huadian Power International Corp. Ltd., A Shares | | |
Huadian Power International Corp. Ltd., H Shares | | |
Huadong Medicine Co. Ltd., A Shares | | |
Huafon Chemical Co. Ltd., A Shares | | |
Huagong Tech Co. Ltd., A Shares | | |
Huaibei Mining Holdings Co. Ltd., A Shares | | |
Hualan Biological Engineering, Inc., A Shares | | |
Huali Industrial Group Co. Ltd., A Shares | | |
Huaneng Lancang River Hydropower, Inc., A Shares | | |
Huaneng Power International, Inc., A Shares | | |
Huaneng Power International, Inc., H Shares | | |
Huatai Securities Co. Ltd., A Shares | | |
Huatai Securities Co. Ltd., H Shares | | |
Huaxi Securities Co. Ltd., A Shares | | |
Huaxia Bank Co. Ltd., A Shares | | |
| | |
Huaxia Eye Hospital Group Co. Ltd., A Shares | | |
Huaxin Cement Co. Ltd., A Shares | | |
Huaxin Cement Co. Ltd., H Shares | | |
Huayu Automotive Systems Co. Ltd., A Shares | | |
Hubei Energy Group Co. Ltd., A Shares | | |
Hubei Jumpcan Pharmaceutical Co. Ltd., A Shares | | |
Hubei Xingfa Chemicals Group Co. Ltd., A Shares | | |
Huizhou Desay Sv Automotive Co. Ltd., A Shares | | |
Humanwell Healthcare Group Co. Ltd., A Shares | | |
Hunan Gold Corp. Ltd., A Shares | | |
Hunan Valin Steel Co. Ltd., A Shares | | |
Hunan Yuneng New Energy Battery Material Co. Ltd., A Shares | | |
Hundsun Technologies, Inc., A Shares | | |
Hwatsing Technology Co. Ltd., Class A | | |
Hygeia Healthcare Holdings Co. Ltd., Class C *(a) | | |
Hygon Information Technology Co. Ltd., Class A | | |
IEIT Systems Co. Ltd., A Shares | | |
Iflytek Co. Ltd., A Shares | | |
Imeik Technology Development Co. Ltd., A Shares | | |
Industrial & Commercial Bank of China Ltd., A Shares | | |
Industrial & Commercial Bank of China Ltd., H Shares | | |
Industrial Bank Co. Ltd., A Shares | | |
Industrial Securities Co. Ltd., A Shares | | |
Ingenic Semiconductor Co. Ltd., A Shares | | |
Inner Mongolia BaoTou Steel Union Co. Ltd., A Shares * | | |
Inner Mongolia Dian Tou Energy Corp. Ltd., A Shares | | |
Inner Mongolia ERDOS Resources Co. Ltd., A Shares | | |
Inner Mongolia ERDOS Resources Co. Ltd., B Shares | | |
Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., A Shares | | |
Inner Mongolia MengDian HuaNeng Thermal Power Corp. Ltd., Class A | | |
Inner Mongolia Yili Industrial Group Co. Ltd., A Shares | | |
Inner Mongolia Yitai Coal Co. Ltd., B Shares | | |
Inner Mongolia Yuan Xing Energy Co. Ltd., A Shares | | |
Innovent Biologics, Inc. * | | |
Intco Medical Technology Co. Ltd., A Shares | | |
| | |
iRay Technology Co. Ltd., A Shares | | |
IRICO Display Devices Co. Ltd., Class A * | | |
Isoftstone Information Technology Group Co. Ltd., Class A | | |
J&T Global Express Ltd. * | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
57
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
JA Solar Technology Co. Ltd., A Shares | | |
Jafron Biomedical Co. Ltd., A Shares | | |
Jason Furniture Hangzhou Co. Ltd., A Shares | | |
JCET Group Co. Ltd., A Shares | | |
JD Health International, Inc. * | | |
| | |
| | |
Jiangling Motors Corp. Ltd., A Shares | | |
Jiangsu Eastern Shenghong Co. Ltd., A Shares | | |
Jiangsu Expressway Co. Ltd., A Shares | | |
Jiangsu Expressway Co. Ltd., H Shares | | |
Jiangsu Financial Leasing Co. Ltd., A Shares | | |
Jiangsu Hengli Hydraulic Co. Ltd., A Shares | | |
Jiangsu Hengrui Pharmaceuticals Co. Ltd., A Shares | | |
Jiangsu King's Luck Brewery JSC Ltd., A Shares | | |
Jiangsu Linyang Energy Co. Ltd., A Shares | | |
Jiangsu Nhwa Pharmaceutical Co. Ltd., Class A | | |
Jiangsu Pacific Quartz Co. Ltd., Class A | | |
Jiangsu Phoenix Publishing & Media Corp. Ltd., Class A | | |
Jiangsu Yanghe Distillery Co. Ltd., A Shares | | |
Jiangsu Yangnong Chemical Co. Ltd., A Shares | | |
Jiangsu Yoke Technology Co. Ltd., A Shares | | |
Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., A Shares | | |
Jiangsu Zhongtian Technology Co. Ltd., A Shares | | |
Jiangxi Copper Co. Ltd., A Shares | | |
Jiangxi Copper Co. Ltd., H Shares | | |
Jiangxi Special Electric Motor Co. Ltd., A Shares * | | |
Jilin Aodong Pharmaceutical Group Co. Ltd., A Shares | | |
Jinduicheng Molybdenum Co. Ltd., Class A | | |
Jinke Smart Services Group Co. Ltd., H Shares * | | |
Jinko Solar Co. Ltd., Class A | | |
Jinxin Fertility Group Ltd. (a) | | |
JiuGui Liquor Co. Ltd., A Shares | | |
Jiumaojiu International Holdings Ltd. | | |
Jizhong Energy Resources Co. Ltd., A Shares | | |
Joincare Pharmaceutical Group Industry Co. Ltd., A Shares | | |
Joinn Laboratories China Co. Ltd., A Shares | | |
Joinn Laboratories China Co. Ltd., H Shares | | |
Jointown Pharmaceutical Group Co. Ltd., A Shares | | |
Jonjee Hi-Tech Industrial & Commercial Holding Co. Ltd., A Shares | | |
| | |
| | |
Juneyao Airlines Co. Ltd., A Shares | | |
J-Yuan Trust Co. Ltd., Class A * | | |
| | |
| | |
Keda Industrial Group Co. Ltd., Shares A | | |
| | |
Kingboard Laminates Holdings Ltd. | | |
Kingdee International Software Group Co. Ltd. * | | |
Kingnet Network Co. Ltd., Class A | | |
Kingsoft Cloud Holdings Ltd. * | | |
| | |
| | |
Kuang-Chi Technologies Co. Ltd., A Shares * | | |
| | |
Kunlun Tech Co. Ltd., A Shares | | |
Kweichow Moutai Co. Ltd., A Shares | | |
Lakala Payment Co. Ltd., A Shares | | |
Lao Feng Xiang Co. Ltd., A Shares | | |
Laobaixing Pharmacy Chain JSC, A Shares | | |
LB Group Co. Ltd., A Shares | | |
Lee & Man Paper Manufacturing Ltd. | | |
Legend Holdings Corp., H Shares * | | |
Lens Technology Co. Ltd., A Shares | | |
Leo Group Co. Ltd., A shares | | |
Lepu Medical Technology Beijing Co. Ltd., A Shares | | |
Levima Advanced Materials Corp., A Shares | | |
Leyard Optoelectronic Co. Ltd., A Shares | | |
| | |
| | |
Liaoning Port Co. Ltd., A Shares | | |
Lingyi iTech Guangdong Co., A Shares | | |
Livzon Pharmaceutical Group, Inc., A Shares | | |
Livzon Pharmaceutical Group, Inc., H Shares | | |
Longfor Group Holdings Ltd. | | |
LONGi Green Energy Technology Co. Ltd., A Shares | | |
Longshine Technology Group Co. Ltd., A Shares | | |
Loongson Technology Corp. Ltd., Shares A * | | |
| | |
Luxi Chemical Group Co. Ltd., A Shares | | |
Luxshare Precision Industry Co. Ltd., A Shares | | |
| | |
Luzhou Laojiao Co. Ltd., A Shares | | |
Maanshan Iron & Steel Co. Ltd., A Shares * | | |
Mango Excellent Media Co. Ltd., A Shares | | |
Maxscend Microelectronics Co. Ltd., A Shares | | |
Meihua Holdings Group Co. Ltd., Class A | | |
Meinian Onehealth Healthcare Holdings Co. Ltd., A Shares | | |
58
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
Metallurgical Corp. of China Ltd., A Shares | | |
Metallurgical Corp. of China Ltd., H Shares | | |
Microport Scientific Corp. *(a) | | |
Micro-Tech Nanjing Co. Ltd., Class A | | |
Ming Yang Smart Energy Group Ltd., A Shares | | |
MINISO Group Holding Ltd. | | |
Minmetals New Energy Materials(Hunan) Co. Ltd., Class A * | | |
| | |
Montage Technology Co. Ltd., A Shares | | |
Muyuan Foods Co. Ltd., A Shares * | | |
Nanjing Iron & Steel Co. Ltd., A Shares | | |
Nanjing Securities Co. Ltd., A Shares | | |
NARI Technology Co. Ltd., A Shares | | |
National Silicon Industry Group Co. Ltd., A Shares | | |
NAURA Technology Group Co. Ltd., A Shares | | |
NavInfo Co. Ltd., A Shares * | | |
| | |
New China Life Insurance Co. Ltd., A Shares | | |
New China Life Insurance Co. Ltd., H Shares | | |
New Hope Liuhe Co. Ltd., A Shares * | | |
New Oriental Education & Technology Group, Inc. * | | |
Newland Digital Technology Co. Ltd., A Shares | | |
Nine Dragons Paper Holdings Ltd. * | | |
Ninestar Corp., A Shares * | | |
Ningbo Deye Technology Co. Ltd., A Shares | | |
Ningbo Joyson Electronic Corp., A Shares | | |
Ningbo Orient Wires & Cables Co. Ltd., A Shares | | |
Ningbo Ronbay New Energy Technology Co. Ltd., A Shares | | |
Ningbo Sanxing Medical Electric Co. Ltd., A Shares | | |
Ningbo Shanshan Co. Ltd., A Shares | | |
Ningbo Tuopu Group Co. Ltd., A Shares | | |
Ningbo Zhoushan Port Co. Ltd., A Shares | | |
Ningxia Baofeng Energy Group Co. Ltd., A Shares | | |
| | |
Nongfu Spring Co. Ltd., H Shares | | |
North Industries Group Red Arrow Co. Ltd., A Shares | | |
Northeast Securities Co. Ltd., A Shares | | |
Offshore Oil Engineering Co. Ltd., A Shares | | |
OFILM Group Co. Ltd., A Shares * | | |
Oppein Home Group, Inc., A Shares | | |
ORG Technology Co. Ltd., A Shares | | |
Orient Securities Co. Ltd., A Shares | | |
Orient Securities Co. Ltd., H Shares | | |
Oriental Energy Co. Ltd., A Shares * | | |
| | |
Oriental Pearl Group Co. Ltd., A Shares | | |
Ourpalm Co. Ltd., A shares * | | |
Ovctek China, Inc., A Shares | | |
Pacific Securities Co. Ltd., Class A * | | |
Pangang Group Vanadium Titanium & Resources Co. Ltd., A Shares * | | |
PDD Holdings, Inc., ADR * | | |
People.cn Co. Ltd., A Shares | | |
People's Insurance Co. Group of China Ltd., A Shares | | |
People's Insurance Co. Group of China Ltd., H Shares | | |
Perfect World Co. Ltd., A Shares | | |
PetroChina Co. Ltd., A Shares | | |
PetroChina Co. Ltd., H Shares | | |
Pharmaron Beijing Co. Ltd., A Shares | | |
Pharmaron Beijing Co. Ltd., H Shares | | |
PICC Property & Casualty Co. Ltd., H Shares | | |
Ping An Bank Co. Ltd., A Shares | | |
Ping An Healthcare & Technology Co. Ltd. *(a) | | |
Ping An Insurance Group Co. of China Ltd., A Shares | | |
Ping An Insurance Group Co. of China Ltd., H Shares | | |
Pingdingshan Tianan Coal Mining Co. Ltd., A Shares | | |
| | |
Polaris Bay Group Co. Ltd., Class A * | | |
Poly Developments & Holdings Group Co. Ltd., A Shares | | |
Poly Property Services Co. Ltd., H Shares | | |
Pop Mart International Group Ltd. | | |
Porton Pharma Solutions Ltd., A Shares | | |
Postal Savings Bank of China Co. Ltd., A Shares | | |
Postal Savings Bank of China Co. Ltd., H Shares | | |
Power Construction Corp. of China Ltd., A Shares | | |
Pylon Technologies Co. Ltd., A Shares | | |
Qi An Xin Technology Group, Inc., Class A * | | |
Qifu Technology, Inc., ADR | | |
Qingdao TGOOD Electric Co. Ltd., A Shares | | |
Qinghai Salt Lake Industry Co. Ltd., A Shares * | | |
Range Intelligent Computing Technology Group Co. Ltd., A Shares | | |
Raytron Technology Co. Ltd., A Shares | | |
Red Star Macalline Group Corp. Ltd., H Shares * | | |
Remegen Co. Ltd., Class A * | | |
Remegen Co. Ltd., H Shares * | | |
RLX Technology, Inc., ADR | | |
Rongsheng Petrochemical Co. Ltd., A Shares | | |
SAIC Motor Corp. Ltd., A Shares | | |
Sailun Group Co. Ltd., A Shares | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
59
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Sanan Optoelectronics Co. Ltd., A Shares | | |
Sangfor Technologies, Inc., A Shares | | |
Sansure Biotech, Inc., A Shares | | |
Sany Heavy Equipment International Holdings Co. Ltd. | | |
Sany Heavy Industry Co. Ltd., A Shares | | |
Sany Renewable Energy Co. Ltd., Class A | | |
Satellite Chemical Co. Ltd., A Shares | | |
SDIC Capital Co. Ltd., A Shares | | |
SDIC Power Holdings Co. Ltd., A Shares | | |
Sealand Securities Co. Ltd., A Shares | | |
| | |
Seazen Holdings Co. Ltd., A Shares * | | |
SenseTime Group, Inc., Class B *(a) | | |
Seres Group Co. Ltd., Class A * | | |
SF Holding Co. Ltd., A Shares | | |
| | |
Shaanxi Coal Industry Co. Ltd., A Shares | | |
Shaanxi Energy Investment Co. Ltd., Class A | | |
Shaanxi International Trust Co. Ltd., A Shares | | |
Shan Xi Hua Yang Group New Energy Co. Ltd., A Shares | | |
Shandong Chenming Paper Holdings Ltd., H Shares * | | |
Shandong Gold Mining Co. Ltd., A Shares | | |
Shandong Gold Mining Co. Ltd., H Shares | | |
Shandong Himile Mechanical Science & Technology Co. Ltd., A Shares | | |
Shandong Hi-speed Co. Ltd., A Shares | | |
Shandong Hualu Hengsheng Chemical Co. Ltd., A Shares | | |
Shandong Humon Smelting Co. Ltd., A Shares | | |
Shandong Linglong Tyre Co. Ltd., A Shares | | |
Shandong Nanshan Aluminum Co. Ltd., A Shares | | |
Shandong Pharmaceutical Glass Co. Ltd., A Shares | | |
Shandong Sun Paper Industry JSC Ltd., A Shares | | |
Shandong Weigao Group Medical Polymer Co. Ltd., H Shares | | |
Shanghai Aiko Solar Energy Co. Ltd., Class A * | | |
Shanghai Bairun Investment Holding Group Co. Ltd., A Shares * | | |
Shanghai Baosight Software Co. Ltd., A Shares | | |
Shanghai BOCHU Electronic Technology Corp. Ltd., A Shares | | |
Shanghai Construction Group Co. Ltd., A Shares | | |
Shanghai Electric Group Co. Ltd., A Shares * | | |
Shanghai Electric Group Co. Ltd., H Shares * | | |
| | |
Shanghai Electric Power Co. Ltd., A Shares | | |
Shanghai Fosun Pharmaceutical Group Co. Ltd., A Shares | | |
Shanghai Fosun Pharmaceutical Group Co. Ltd., H Shares | | |
Shanghai Fudan Microelectronics Group Co. Ltd., A Shares | | |
Shanghai Fudan Microelectronics Group Co. Ltd., H Shares | | |
Shanghai Industrial Holdings Ltd. | | |
Shanghai International Airport Co. Ltd., A Shares | | |
Shanghai International Port Group Co. Ltd., A Shares | | |
Shanghai Jinjiang International Hotels Co. Ltd., A Shares | | |
Shanghai Jinjiang International Hotels Co. Ltd., B Shares | | |
Shanghai Jinqiao Export Processing Zone Development Co. Ltd., A Shares | | |
Shanghai Junshi Biosciences Co. Ltd., A Shares * | | |
Shanghai Junshi Biosciences Co. Ltd., H Shares *(a) | | |
Shanghai Lingang Holdings Corp. Ltd., A Shares | | |
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., A Shares | | |
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., B Shares | | |
Shanghai M&G Stationery, Inc., A Shares | | |
Shanghai Mechanical & Electrical Industry Co. Ltd., B shares | | |
Shanghai Moons' Electric Co. Ltd., Class A | | |
Shanghai Pharmaceuticals Holding Co. Ltd., A Shares | | |
Shanghai Pharmaceuticals Holding Co. Ltd., H Shares | | |
Shanghai Pudong Development Bank Co. Ltd., A Shares | | |
Shanghai Putailai New Energy Technology Co. Ltd., A Shares | | |
Shanghai RAAS Blood Products Co. Ltd., A Shares | | |
Shanghai Rural Commercial Bank Co. Ltd., A Shares | | |
Shanghai Tunnel Engineering Co. Ltd., A Shares | | |
Shanghai United Imaging Healthcare Co. Ltd., Class A | | |
Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd., A Shares | | |
Shanghai Yuyuan Tourist Mart Group Co. Ltd., A Shares | | |
Shanghai Zhangjiang High-Tech Park Development Co. Ltd., A Shares | | |
Shanghai Zhenhua Heavy Industries Co. Ltd., B Shares | | |
Shanjin International Gold Co. Ltd., A Shares | | |
60
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Shanxi Coal International Energy Group Co. Ltd., Class A | | |
Shanxi Coking Coal Energy Group Co. Ltd., A Shares | | |
Shanxi Lu'an Environmental Energy Development Co. Ltd., A Shares | | |
Shanxi Meijin Energy Co. Ltd., A Shares * | | |
Shanxi Securities Co. Ltd., A Shares | | |
Shanxi Taigang Stainless Steel Co. Ltd., A Shares * | | |
Shanxi Xinghuacun Fen Wine Factory Co. Ltd., A Shares | | |
Shede Spirits Co. Ltd., Class A | | |
Shenergy Co. Ltd., Class A | | |
Shenghe Resources Holding Co. Ltd., A Shares | | |
Shengyi Technology Co. Ltd., A Shares | | |
Shennan Circuits Co. Ltd., A Shares | | |
Shenwan Hongyuan Group Co. Ltd., A Shares | | |
Shenwan Hongyuan Group Co. Ltd., H Shares | | |
Shenzhen Airport Co. Ltd., A Shares | | |
Shenzhen Capchem Technology Co. Ltd., A Shares | | |
Shenzhen Dynanonic Co. Ltd., A Shares * | | |
Shenzhen Energy Group Co. Ltd., A Shares | | |
Shenzhen Expressway Corp. Ltd., H Shares | | |
Shenzhen Gas Corp. Ltd., A Shares | | |
Shenzhen Goodix Technology Co. Ltd., A Shares | | |
Shenzhen Inovance Technology Co. Ltd., A Shares | | |
Shenzhen International Holdings Ltd. | | |
| | |
Shenzhen Jinjia Group Co. Ltd., A Shares | | |
Shenzhen Kaifa Technology Co. Ltd., A Shares | | |
Shenzhen Kangtai Biological Products Co. Ltd., A Shares | | |
Shenzhen Kedali Industry Co. Ltd., A Shares | | |
Shenzhen Kingdom Sci-Tech Co. Ltd., A Shares | | |
Shenzhen Kstar Science & Technology Co. Ltd., Class A | | |
Shenzhen Longsys Electronics Co. Ltd., Class A * | | |
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., A Shares | | |
Shenzhen MTC Co. Ltd., A Shares | | |
Shenzhen New Industries Biomedical Engineering Co. Ltd., A Shares | | |
Shenzhen Overseas Chinese Town Co. Ltd., A Shares * | | |
Shenzhen Salubris Pharmaceuticals Co. Ltd., A Shares | | |
Shenzhen SC New Energy Technology Corp., A Shares | | |
Shenzhen SED Industry Co. Ltd., Class A | | |
| | |
Shenzhen Senior Technology Material Co. Ltd., A Shares | | |
Shenzhen Sunway Communication Co. Ltd., A Shares | | |
Shenzhen Transsion Holdings Co. Ltd., A Shares | | |
Shenzhen YUTO Packaging Technology Co. Ltd., A Shares | | |
Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., A Shares | | |
Shenzhou International Group Holdings Ltd. | | |
Shijiazhuang Changshan BeiMing Technology Co. Ltd., A Shares * | | |
Shijiazhuang Yiling Pharmaceutical Co. Ltd., A Shares | | |
Shougang Fushan Resources Group Ltd. | | |
Siasun Robot & Automation Co. Ltd., A Shares * | | |
SICC Co. Ltd., A Shares * | | |
Sichuan Changhong Electric Co. Ltd., A Shares * | | |
Sichuan Chuantou Energy Co. Ltd., A Shares | | |
Sichuan Hebang Biotechnology Co. Ltd., A Shares * | | |
Sichuan Kelun Pharmaceutical Co. Ltd., A Shares | | |
Sichuan New Energy Power Co. Ltd., Shares A * | | |
Sichuan Road & Bridge Group Co. Ltd., A Shares | | |
Sichuan Swellfun Co. Ltd., A Shares | | |
Sichuan Yahua Industrial Group Co. Ltd., A Shares | | |
Sieyuan Electric Co. Ltd., A Shares | | |
Sino Biopharmaceutical Ltd. | | |
Sinolink Securities Co. Ltd., A Shares | | |
Sinoma International Engineering Co., A Shares | | |
Sinoma Science & Technology Co. Ltd., A Shares | | |
Sinomine Resource Group Co. Ltd., A Shares | | |
Sinopec Engineering Group Co. Ltd., H Shares | | |
Sinopec Oilfield Service Corp., H Shares * | | |
Sinopec Shanghai Petrochemical Co. Ltd., A Shares * | | |
Sinopec Shanghai Petrochemical Co. Ltd., H Shares * | | |
Sinopharm Group Co. Ltd., H Shares | | |
| | |
| | |
Skshu Paint Co. Ltd., A Shares | | |
Smoore International Holdings Ltd. (a) | | |
Songcheng Performance Development Co. Ltd., A Shares | | |
SooChow Securities Co. Ltd., A Shares | | |
Southwest Securities Co. Ltd., A Shares | | |
Spring Airlines Co. Ltd., Class A | | |
StarPower Semiconductor Ltd., A Shares | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
61
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
STO Express Co. Ltd., A Shares | | |
Sun Art Retail Group Ltd. | | |
Sungrow Power Supply Co. Ltd., A Shares | | |
Sunny Optical Technology Group Co. Ltd. | | |
Sunresin New Materials Co. Ltd., Class A | | |
Sunwoda Electronic Co. Ltd., A Shares | | |
Suofeiya Home Collection Co. Ltd., A Shares | | |
SUPCON Technology Co. Ltd., A Shares | | |
Suzhou Dongshan Precision Manufacturing Co. Ltd., A Shares | | |
Suzhou Maxwell Technologies Co. Ltd., A Shares | | |
Suzhou Nanomicro Technology Co. Ltd., Class A | | |
Suzhou Novosense Microelectronics Co. Ltd., Class A * | | |
Suzhou TFC Optical Communication Co. Ltd., Class A | | |
Taiji Computer Corp. Ltd., A Shares | | |
TAL Education Group, ADR * | | |
Tangshan Jidong Cement Co. Ltd., A Shares * | | |
TangShan Port Group Co. Ltd., A Shares | | |
Tasly Pharmaceutical Group Co. Ltd., Class A | | |
| | |
TCL Technology Group Corp., A Shares | | |
TCL Zhonghuan Renewable Energy Technology Co. Ltd., A Shares | | |
| | |
Tencent Music Entertainment Group, ADR | | |
Thunder Software Technology Co. Ltd., A Shares | | |
Tian Di Science & Technology Co. Ltd., A Shares | | |
Tianfeng Securities Co. Ltd., A Shares * | | |
Tianjin Chase Sun Pharmaceutical Co. Ltd., A Shares | | |
Tianma Microelectronics Co. Ltd., A Shares * | | |
Tianqi Lithium Corp., A Shares | | |
Tianqi Lithium Corp., H Shares | | |
Tianshan Aluminum Group Co. Ltd., A Shares | | |
TianShan Material Co. Ltd., A Shares | | |
Tianshui Huatian Technology Co. Ltd., A Shares | | |
Tingyi Cayman Islands Holding Corp. | | |
Titan Wind Energy Suzhou Co. Ltd., A Shares | | |
Tongcheng Travel Holdings Ltd. | | |
TongFu Microelectronics Co. Ltd., A Shares | | |
Tonghua Dongbao Pharmaceutical Co. Ltd., A Shares | | |
Tongkun Group Co. Ltd., A Shares | | |
Tongling Nonferrous Metals Group Co. Ltd., A Shares | | |
Tongwei Co. Ltd., A Shares | | |
| | |
Topchoice Medical Corp., A Shares | | |
Topsec Technologies Group, Inc., A Shares * | | |
Topsports International Holdings Ltd. | | |
Towngas Smart Energy Co. Ltd. * | | |
TravelSky Technology Ltd., H Shares | | |
Trina Solar Co. Ltd., A Shares | | |
| | |
Tsinghua Tongfang Co. Ltd., Class A * | | |
Tsingtao Brewery Co. Ltd., A Shares | | |
Tsingtao Brewery Co. Ltd., H Shares | | |
| | |
Unigroup Guoxin Microelectronics Co. Ltd., A Shares | | |
Uni-President China Holdings Ltd. | | |
Unisplendour Corp. Ltd., A Shares | | |
Valiant Co. Ltd., A Shares | | |
Vanchip Tianjin Technology Co. Ltd., Class A | | |
Verisilicon Microelectronics Shanghai Co. Ltd., Class A * | | |
Vipshop Holdings Ltd., ADR | | |
Walvax Biotechnology Co. Ltd., A Shares | | |
Wanda Film Holding Co. Ltd., A Shares * | | |
Wangfujing Group Co. Ltd., Class A | | |
Wangsu Science & Technology Co. Ltd., A Shares | | |
Wanhua Chemical Group Co. Ltd., A Shares | | |
Want Want China Holdings Ltd. | | |
Wanxiang Qianchao Co. Ltd., A Shares | | |
| | |
Weichai Power Co. Ltd., A Shares | | |
Weichai Power Co. Ltd., H Shares | | |
Weifu High-Technology Group Co. Ltd., A Shares | | |
Weihai Guangwei Composites Co. Ltd., A Shares | | |
Wens Foodstuff Group Co. Ltd., A Shares | | |
Western Mining Co. Ltd., A Shares | | |
Western Securities Co. Ltd., A Shares | | |
Western Superconducting Technologies Co. Ltd., A Shares | | |
Will Semiconductor Co. Ltd. Shanghai, A Shares | | |
Wingtech Technology Co. Ltd., A Shares | | |
Winner Medical Co. Ltd., A Shares | | |
Winning Health Technology Group Co. Ltd., A Shares | | |
Wolong Electric Group Co. Ltd., A Shares | | |
Wonders Information Co. Ltd., Class A * | | |
Wuchan Zhongda Group Co. Ltd., A Shares | | |
Wuhan Guide Infrared Co. Ltd., A Shares | | |
Wuliangye Yibin Co. Ltd., A Shares | | |
WUS Printed Circuit Kunshan Co. Ltd., A Shares | | |
WuXi AppTec Co. Ltd., A Shares | | |
WuXi AppTec Co. Ltd., H Shares | | |
Wuxi Autowell Technology Co. Ltd., Class A | | |
62
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Wuxi Biologics Cayman, Inc. * | | |
XCMG Construction Machinery Co. Ltd., A Shares | | |
Xiamen C & D, Inc., A Shares | | |
Xiamen Faratronic Co. Ltd., A Shares | | |
Xiamen ITG Group Corp. Ltd., A Shares | | |
Xiamen Tungsten Co. Ltd., A Shares | | |
Xiangcai Co. Ltd., A Shares | | |
| | |
Xinhua Winshare Publishing & Media Co. Ltd., H Shares | | |
Xinjiang Daqo New Energy Co. Ltd., Class A | | |
Xinxing Ductile Iron Pipes Co. Ltd., A Shares | | |
Xinyi Solar Holdings Ltd. | | |
| | |
Xtep International Holdings Ltd. | | |
Xuji Electric Co. Ltd., A Shares | | |
Yadea Group Holdings Ltd. | | |
Yangling Metron New Material, Inc., A Shares | | |
Yangtze Optical Fibre & Cable Joint Stock Co. Ltd., A Shares | | |
Yangzhou Yangjie Electronic Technology Co. Ltd., A Shares | | |
Yangzijiang Financial Holding Ltd. | | |
Yangzijiang Shipbuilding Holdings Ltd. | | |
Yankuang Energy Group Co. Ltd., A Shares | | |
Yankuang Energy Group Co. Ltd., H Shares | | |
Yanlord Land Group Ltd. * | | |
Yantai Changyu Pioneer Wine Co. Ltd., A Shares | | |
Yantai Eddie Precision Machinery Co. Ltd., A Shares | | |
Yantai Jereh Oilfield Services Group Co. Ltd., A Shares | | |
Yealink Network Technology Corp. Ltd., A Shares | | |
Yifan Pharmaceutical Co. Ltd., A Shares * | | |
Yifeng Pharmacy Chain Co. Ltd., A Shares | | |
Yihai International Holding Ltd. | | |
Yihai Kerry Arawana Holdings Co. Ltd., A Shares | | |
Yixintang Pharmaceutical Group Co. Ltd., A Shares | | |
Yonghui Superstores Co. Ltd., A Shares * | | |
YongXing Special Materials Technology Co. Ltd., A Shares | | |
Yonyou Network Technology Co. Ltd., A Shares * | | |
Youngor Fashion Co. Ltd., A Shares | | |
Youngy Co. Ltd., A Shares | | |
YTO Express Group Co. Ltd., A Shares | | |
Yuan Longping High-tech Agriculture Co. Ltd., A Shares | | |
| | |
| | |
Yunda Holding Co. Ltd., A Shares | | |
Yuneng Technology Co. Ltd., Shares A | | |
Yunnan Aluminium Co. Ltd., A Shares | | |
| | |
Yunnan Baiyao Group Co. Ltd., A Shares | | |
Yunnan Botanee Bio-Technology Group Co. Ltd., A Shares | | |
Yunnan Chihong Zinc&Germanium Co. Ltd., Class A | | |
Yunnan Copper Co. Ltd., A Shares | | |
Yunnan Energy New Material Co. Ltd., A Shares | | |
Yunnan Tin Co. Ltd., A Shares | | |
Yunnan Yuntianhua Co. Ltd., A Shares | | |
Yutong Bus Co. Ltd., A Shares | | |
| | |
Zangge Mining Co. Ltd., A Shares | | |
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., A Shares | | |
Zhaojin Mining Industry Co. Ltd., H Shares | | |
Zhefu Holding Group Co. Ltd., A Shares | | |
Zhejiang Century Huatong Group Co. Ltd., A Shares * | | |
Zhejiang China Commodities City Group Co. Ltd., A Shares | | |
Zhejiang Chint Electrics Co. Ltd., A Shares | | |
Zhejiang Crystal-Optech Co. Ltd., A Shares | | |
Zhejiang Dahua Technology Co. Ltd., A Shares | | |
Zhejiang Daily Digital Culture Group Co. Ltd., Class A | | |
Zhejiang Dingli Machinery Co. Ltd., A Shares | | |
Zhejiang Expressway Co. Ltd., H Shares | | |
Zhejiang Hailiang Co. Ltd., A Shares | | |
Zhejiang HangKe Technology, Inc. Co., A Shares | | |
Zhejiang Hisoar Pharmaceutical Co. Ltd., A Shares * | | |
Zhejiang Huace Film & Television Co. Ltd., A Shares | | |
Zhejiang Huahai Pharmaceutical Co. Ltd., A Shares | | |
Zhejiang Huayou Cobalt Co. Ltd., A Shares | | |
Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., A Shares | | |
Zhejiang Jiuzhou Pharmaceutical Co. Ltd., A Shares | | |
Zhejiang Juhua Co. Ltd., A Shares | | |
Zhejiang Leapmotor Technology Co. Ltd. *(a) | | |
Zhejiang Longsheng Group Co. Ltd., A Shares | | |
Zhejiang NHU Co. Ltd., A Shares | | |
Zhejiang Sanhua Intelligent Controls Co. Ltd., A Shares | | |
Zhejiang Shuanghuan Driveline Co. Ltd., Class A | | |
Zhejiang Supor Co. Ltd., A Shares | | |
Zhejiang Wanfeng Auto Wheel Co. Ltd., A Shares | | |
Zhejiang Weixing New Building Materials Co. Ltd., A Shares | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
63
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., A Shares | | |
Zhejiang Zheneng Electric Power Co. Ltd., Class A | | |
Zhengzhou Coal Mining Machinery Group Co. Ltd., A Shares | | |
Zheshang Securities Co. Ltd., A Shares | | |
ZhongAn Online P&C Insurance Co. Ltd., H Shares * | | |
Zhongji Innolight Co. Ltd., A Shares | | |
Zhongjin Gold Corp. Ltd., Class A | | |
Zhongshan Public Utilities Group Co. Ltd., A Shares | | |
Zhongsheng Group Holdings Ltd. | | |
Zhongtai Securities Co. Ltd., A Shares | | |
Zhuhai Huafa Properties Co. Ltd., A Shares | | |
Zhuzhou CRRC Times Electric Co. Ltd., A Shares | | |
Zhuzhou CRRC Times Electric Co. Ltd., H Shares | | |
Zhuzhou Hongda Electronics Corp. Ltd., A Shares | | |
Zhuzhou Kibing Group Co. Ltd., A Shares | | |
Zijin Mining Group Co. Ltd., A Shares | | |
Zijin Mining Group Co. Ltd., H Shares | | |
| | |
Zoomlion Heavy Industry Science & Technology Co. Ltd., A Shares | | |
Zoomlion Heavy Industry Science & Technology Co. Ltd., H Shares | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Interconexion Electrica SA ESP | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
|
|
Commercial International Bank - Egypt (CIB), GDR | | |
|
|
| | |
Alpha Services & Holdings SA | | |
Athens International Airport SA | | |
Athens Water Supply & Sewage Co. SA | | |
Autohellas Tourist & Trading SA | | |
| | |
| | |
| | |
Eurobank Ergasias Services & Holdings SA, A Shares | | |
| | |
| | |
Hellenic Telecommunications Organization SA | | |
Helleniq Energy Holdings SA | | |
Holding Co. ADMIE IPTO SA | | |
Intrakat Technical & Energy Projects SA * | | |
| | |
| | |
Metlen Energy & Metals SA | | |
Motor Oil Hellas Corinth Refineries SA | | |
National Bank of Greece SA | | |
| | |
| | |
Piraeus Financial Holdings SA | | |
Piraeus Port Authority SA | | |
| | |
| | |
| | |
| | |
Titan Cement International SA | | |
| | |
| | |
|
|
China Huishan Dairy Holdings Co. Ltd. *(b) | | |
|
|
Magyar Telekom Telecommunications PLC | | |
MOL Hungarian Oil & Gas PLC | | |
| | |
| | |
| | |
|
|
| | |
| | |
Eimskipafelag Islands Hf. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Reitir fasteignafelag Hf. | | |
| | |
|
|
| | |
| | |
| | |
| | |
Adani Energy Solutions Ltd. * | | |
| | |
Adani Green Energy Ltd. * | | |
Adani Ports & Special Economic Zone Ltd. | | |
| | |
64
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
Aditya Birla Capital Ltd. * | | |
| | |
| | |
| | |
| | |
Apollo Hospitals Enterprise Ltd. | | |
| | |
| | |
| | |
AU Small Finance Bank Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Bajaj Holdings & Investment Ltd. | | |
Balkrishna Industries Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Bharat Heavy Electricals Ltd. | | |
Bharat Petroleum Corp. Ltd. | | |
| | |
Bharti Airtel Ltd. - Partly Paid Shares | | |
| | |
| | |
Britannia Industries Ltd. | | |
| | |
| | |
CG Power & Industrial Solutions Ltd. | | |
Cholamandalam Investment & Finance Co. Ltd. | | |
| | |
| | |
| | |
Colgate-Palmolive India Ltd. | | |
Container Corp. of India Ltd. | | |
Coromandel International Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Dixon Technologies India Ltd. | | |
| | |
| | |
Dr. Reddy's Laboratories Ltd. | | |
| | |
| | |
Embassy Office Parks REIT | | |
| | |
| | |
FSN E-Commerce Ventures Ltd. * | | |
| | |
General Insurance Corp. of India | | |
GlaxoSmithKline Pharmaceuticals Ltd. | | |
Glenmark Pharmaceuticals Ltd. | | |
GMR Airports Infrastructure Ltd. * | | |
Godrej Consumer Products Ltd. | | |
| | |
| | |
| | |
| | |
Gujarat Fluorochemicals Ltd. | | |
| | |
| | |
| | |
HDFC Asset Management Co. Ltd. | | |
| | |
HDFC Life Insurance Co. Ltd. | | |
| | |
| | |
Hindustan Aeronautics Ltd. | | |
Hindustan Petroleum Corp. Ltd. | | |
| | |
| | |
Honeywell Automation India Ltd. | | |
| | |
ICICI Lombard General Insurance Co. Ltd. | | |
ICICI Prudential Life Insurance Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Indian Railway Catering & Tourism Corp. Ltd. | | |
Indian Railway Finance Corp. Ltd. | | |
Indian Renewable Energy Development Agency Ltd. * | | |
| | |
| | |
| | |
| | |
InterGlobe Aviation Ltd. * | | |
| | |
| | |
| | |
Jindal Steel & Power Ltd. | | |
Jio Financial Services Ltd. * | | |
| | |
| | |
| | |
| | |
Kalyan Jewellers India Ltd. | | |
Kansai Nerolac Paints Ltd. | | |
| | |
| | |
| | |
L&T Technology Services Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Macrotech Developers Ltd. | | |
Mahindra & Mahindra Financial Services Ltd. | | |
| | |
Mangalore Refinery & Petrochemicals Ltd. | | |
| | |
| | |
| | |
Max Financial Services Ltd. * | | |
Max Healthcare Institute Ltd. | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
65
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Mazagon Dock Shipbuilders Ltd. | | |
| | |
| | |
| | |
| | |
| | |
New India Assurance Co. Ltd. | | |
| | |
Nippon Life India Asset Management Ltd. | | |
| | |
| | |
| | |
| | |
Oil & Natural Gas Corp. Ltd. | | |
| | |
One 97 Communications Ltd. * | | |
Oracle Financial Services Software Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Power Grid Corp. of India Ltd. | | |
Prestige Estates Projects Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Samvardhana Motherson International Ltd. | | |
SBI Cards & Payment Services Ltd. | | |
SBI Life Insurance Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Solar Industries India Ltd. | | |
Sona Blw Precision Forgings Ltd. | | |
| | |
Star Health & Allied Insurance Co. Ltd. * | | |
| | |
Steel Authority of India Ltd. | | |
Sun Pharmaceutical Industries Ltd. | | |
| | |
| | |
| | |
| | |
Syngene International Ltd. | | |
| | |
Tata Consultancy Services Ltd. | | |
Tata Consumer Products Ltd. | | |
| | |
| | |
Tata Motors Ltd. - Unlisted Line *(b) | | |
| | |
| | |
| | |
| | |
Tata Teleservices Maharashtra Ltd. * | | |
| | |
| | |
| | |
Torrent Pharmaceuticals Ltd. | | |
| | |
| | |
Tube Investments of India Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Zee Entertainment Enterprises Ltd. * | | |
| | |
| | |
| | |
|
|
Adaro Energy Indonesia Tbk. PT | | |
Amman Mineral Internasional PT * | | |
Astra Agro Lestari Tbk. PT | | |
Astra International Tbk. PT | | |
| | |
Bank Central Asia Tbk. PT | | |
Bank Mandiri Persero Tbk. PT | | |
Bank Negara Indonesia Persero Tbk. PT | | |
Bank Rakyat Indonesia Persero Tbk. PT | | |
Bank Syariah Indonesia Tbk. PT | | |
| | |
| | |
Bumi Serpong Damai Tbk. PT * | | |
Charoen Pokphand Indonesia Tbk. PT | | |
Dayamitra Telekomunikasi PT | | |
Elang Mahkota Teknologi Tbk. PT | | |
GoTo Gojek Tokopedia Tbk. PT * | | |
| | |
Hanjaya Mandala Sampoerna Tbk. PT | | |
Indah Kiat Pulp & Paper Tbk. PT | | |
Indocement Tunggal Prakarsa Tbk. PT | | |
Indofood CBP Sukses Makmur Tbk. PT | | |
Indofood Sukses Makmur Tbk. PT | | |
| | |
Jasa Marga Persero Tbk. PT | | |
| | |
| | |
Merdeka Copper Gold Tbk. PT * | | |
Perusahaan Gas Negara Tbk. PT | | |
Petrindo Jaya Kreasi Tbk. PT * | | |
Sarana Menara Nusantara Tbk. PT | | |
Semen Indonesia Persero Tbk. PT | | |
Smartfren Telecom Tbk. PT * | | |
Sumber Alfaria Trijaya Tbk. PT | | |
66
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Telkom Indonesia Persero Tbk. PT, Class B | | |
Tower Bersama Infrastructure Tbk. PT | | |
Trimegah Bangun Persada Tbk. PT | | |
Unilever Indonesia Tbk. PT | | |
| | |
| | |
| | |
| | |
|
|
Agility Public Warehousing Co. KSC | | |
| | |
| | |
| | |
Kuwait Finance House KSCP | | |
| | |
Mobile Telecommunications Co. KSCP | | |
National Bank of Kuwait SAKP | | |
| | |
|
|
Alliance Bank Malaysia Bhd. | | |
| | |
| | |
| | |
| | |
| | |
Fraser & Neave Holdings Bhd. | | |
| | |
| | |
| | |
Hartalega Holdings Bhd. * | | |
| | |
Hong Leong Financial Group Bhd. | | |
| | |
| | |
| | |
| | |
| | |
Malaysia Airports Holdings Bhd. | | |
| | |
| | |
| | |
| | |
Petronas Chemicals Group Bhd. | | |
| | |
| | |
| | |
Press Metal Aluminium Holdings Bhd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
YTL Power International Bhd. | | |
| | |
|
|
| | |
| | |
| | |
| | |
America Movil SAB de CV, Series B | | |
Arca Continental SAB de CV | | |
| | |
| | |
Cemex SAB de CV, Series CPO | | |
Coca-Cola Femsa SAB de CV | | |
Concentradora Fibra Danhos SA de CV | | |
Corp. Inmobiliaria Vesta SAB de CV | | |
El Puerto de Liverpool SAB de CV, Series C1 | | |
Fibra Uno Administracion SA de CV | | |
Fomento Economico Mexicano SAB de CV | | |
| | |
Gruma SAB de CV, B Shares | | |
Grupo Aeroportuario del Centro Norte SAB de CV | | |
Grupo Aeroportuario del Pacifico SAB de CV, B Shares | | |
Grupo Aeroportuario del Sureste SAB de CV, B Shares | | |
Grupo Bimbo SAB de CV, Series A | | |
Grupo Carso SAB de CV, Series A1 | | |
Grupo Comercial Chedraui SA de CV | | |
Grupo Elektra SAB de CV (b) | | |
Grupo Financiero Banorte SAB de CV, O Shares | | |
Grupo Financiero Inbursa SAB de CV, O Shares * | | |
Grupo Mexico SAB de CV, Series B | | |
Grupo Televisa SAB, Series CPO | | |
Industrias Penoles SAB de CV * | | |
Kimberly-Clark de Mexico SAB de CV, A Shares | | |
Megacable Holdings SAB de CV, Series CPO | | |
| | |
Operadora De Sites Mexicanos SAB de CV | | |
Orbia Advance Corp. SAB de CV | | |
Prologis Property Mexico SA de CV | | |
Promotora y Operadora de Infraestructura SAB de CV | | |
Qualitas Controladora SAB de CV | | |
| | |
Wal-Mart de Mexico SAB de CV | | |
| | |
|
|
| | |
| | |
| | |
Bank of the Philippine Islands | | |
| | |
Bloomberry Resorts Corp. * | | |
Converge Information & Communications Technology Solutions, Inc. * | | |
| | |
| | |
GT Capital Holdings, Inc. | | |
International Container Terminal Services, Inc. | | |
| | |
| | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
67
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
Metropolitan Bank & Trust Co. | | |
| | |
| | |
Puregold Price Club, Inc. | | |
| | |
Semirara Mining & Power Corp. | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Ezdan Holding Group QSC * | | |
| | |
| | |
Mesaieed Petrochemical Holding Co. | | |
| | |
Qatar Aluminum Manufacturing Co. | | |
Qatar Electricity & Water Co. QSC | | |
| | |
Qatar Gas Transport Co. Ltd. | | |
Qatar International Islamic Bank QSC | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Sberbank of Russia PJSC *(b)(c) | | |
| | |
|
|
Abdullah Al Othaim Markets Co. | | |
| | |
| | |
Advanced Petrochemical Co. * | | |
| | |
Aldrees Petroleum & Transport Services Co. | | |
| | |
| | |
| | |
| | |
Arabian Contracting Services Co. * | | |
| | |
Arabian Internet & Communications Services Co. | | |
| | |
| | |
| | |
| | |
| | |
Bupa Arabia for Cooperative Insurance Co. | | |
Catrion Catering Holding Co. | | |
Co. for Cooperative Insurance | | |
| | |
| | |
Dar Al Arkan Real Estate Development Co. * | | |
Dr. Sulaiman Al Habib Medical Services Group Co. | | |
| | |
| | |
| | |
| | |
| | |
Mobile Telecommunications Co. Saudi Arabia | | |
Mouwasat Medical Services Co. | | |
| | |
National Industrialization Co., Class C * | | |
Power & Water Utility Co. for Jubail & Yanbu | | |
| | |
Rabigh Refining & Petrochemical Co. * | | |
| | |
| | |
| | |
Sahara International Petrochemical Co. | | |
SAL Saudi Logistics Services | | |
Saudi Arabian Mining Co. * | | |
| | |
Saudi Aramco Base Oil Co. | | |
| | |
Saudi Basic Industries Corp. | | |
| | |
| | |
Saudi Industrial Investment Group | | |
| | |
Saudi Kayan Petrochemical Co. * | | |
| | |
Saudi Research & Media Group * | | |
Saudi Tadawul Group Holding Co. | | |
| | |
Saudia Dairy & Foodstuff Co. | | |
| | |
| | |
Southern Province Cement Co. | | |
| | |
| | |
Yanbu National Petrochemical Co. | | |
| | |
|
|
| | |
African Rainbow Minerals Ltd. | | |
Anglo American Platinum Ltd. | | |
| | |
Aspen Pharmacare Holdings Ltd. | | |
| | |
| | |
Capitec Bank Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Growthpoint Properties Ltd. | | |
Harmony Gold Mining Co. Ltd. | | |
Impala Platinum Holdings Ltd. | | |
| | |
68
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Northam Platinum Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Advanced Energy Solution Holding Co. Ltd. | | |
| | |
Airtac International Group | | |
| | |
ASE Technology Holding Co. Ltd. | | |
| | |
Asia Vital Components Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Catcher Technology Co. Ltd. | | |
Cathay Financial Holding Co. Ltd. | | |
Chailease Holding Co. Ltd. | | |
Chang Hwa Commercial Bank Ltd. | | |
Cheng Shin Rubber Industry Co. Ltd. | | |
Chicony Electronics Co. Ltd. | | |
| | |
| | |
| | |
Chunghwa Telecom Co. Ltd. | | |
| | |
CTBC Financial Holding Co. Ltd. | | |
| | |
| | |
E.Sun Financial Holding Co. Ltd. | | |
| | |
| | |
| | |
| | |
Eternal Materials Co. Ltd. | | |
| | |
Evergreen Marine Corp. Taiwan Ltd. | | |
Far Eastern International Bank | | |
Far Eastern New Century Corp. | | |
Far EasTone Telecommunications Co. Ltd. | | |
Feng TAY Enterprise Co. Ltd. | | |
| | |
First Financial Holding Co. Ltd. | | |
Formosa Chemicals & Fibre Corp. | | |
Formosa Petrochemical Corp. | | |
| | |
Formosa Sumco Technology Corp. | | |
| | |
Foxconn Technology Co. Ltd. | | |
Fubon Financial Holding Co. Ltd. | | |
Genius Electronic Optical Co. Ltd. | | |
Giant Manufacturing Co. Ltd. | | |
Gigabyte Technology Co. Ltd. | | |
| | |
| | |
| | |
Hon Hai Precision Industry Co. Ltd. | | |
| | |
| | |
Hua Nan Financial Holdings Co. Ltd., Class C | | |
| | |
| | |
KGI Financial Holding Co. Ltd. | | |
Largan Precision Co. Ltd. | | |
Lite-On Technology Corp., ADR | | |
| | |
Mega Financial Holding Co. Ltd. | | |
Micro-Star International Co. Ltd. | | |
| | |
| | |
Nan Ya Printed Circuit Board Corp. | | |
| | |
Nien Made Enterprise Co. Ltd. | | |
Novatek Microelectronics Corp. | | |
Oneness Biotech Co. Ltd. * | | |
| | |
| | |
| | |
| | |
Powerchip Semiconductor Manufacturing Corp. * | | |
Powertech Technology, Inc. | | |
President Chain Store Corp. | | |
| | |
Realtek Semiconductor Corp. | | |
Ruentex Development Co. Ltd. | | |
Shanghai Commercial & Savings Bank Ltd. | | |
Shin Kong Financial Holding Co. Ltd. * | | |
| | |
Sino-American Silicon Products, Inc. | | |
SinoPac Financial Holdings Co. Ltd. | | |
Synnex Technology International Corp. | | |
Taishin Financial Holding Co. Ltd. | | |
| | |
Taiwan Cooperative Financial Holding Co. Ltd. | | |
Taiwan Fertilizer Co. Ltd. | | |
Taiwan Glass Industry Corp. * | | |
Taiwan High Speed Rail Corp. | | |
| | |
| | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | |
| | |
TCC Group Holdings Co. Ltd. | | |
Teco Electric & Machinery Co. Ltd. | | |
Transcend Information, Inc. | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
69
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
U-Ming Marine Transport Corp. | | |
Unimicron Technology Corp. | | |
Uni-President Enterprises Corp. | | |
United Microelectronics Corp. | | |
Vanguard International Semiconductor Corp. | | |
Voltronic Power Technology Corp. | | |
| | |
| | |
| | |
Win Semiconductors Corp. * | | |
Winbond Electronics Corp. | | |
| | |
| | |
| | |
| | |
Yang Ming Marine Transport Corp. | | |
Yuanta Financial Holding Co. Ltd. | | |
| | |
Yulon Nissan Motor Co. Ltd. | | |
Zhen Ding Technology Holding Ltd. | | |
| | |
|
|
Advanced Info Service PCL NVDR | | |
Airports of Thailand PCL NVDR | | |
Asset World Corp. PCL NVDR | | |
| | |
| | |
Bangkok Dusit Medical Services PCL NVDR | | |
Bangkok Expressway & Metro PCL NVDR | | |
Bangkok Life Assurance PCL NVDR | | |
| | |
| | |
BTS Group Holdings PCL NVDR * | | |
Bumrungrad Hospital PCL NVDR | | |
| | |
| | |
Central Retail Corp. PCL NVDR | | |
Charoen Pokphand Foods PCL NVDR | | |
| | |
| | |
Delta Electronics Thailand PCL NVDR | | |
Digital Telecommunications Infrastructure Fund, Class F | | |
Electricity Generating PCL NVDR | | |
| | |
Global Power Synergy PCL NVDR | | |
Gulf Energy Development PCL NVDR | | |
Home Product Center PCL NVDR | | |
Indorama Ventures PCL NVDR | | |
Intouch Holdings PCL NVDR | | |
| | |
| | |
| | |
| | |
| | |
Minor International PCL NVDR | | |
Muangthai Capital PCL NVDR | | |
| | |
PTT Exploration & Production PCL NVDR | | |
PTT Global Chemical PCL NVDR | | |
PTT Oil & Retail Business PCL NVDR | | |
| | |
| | |
| | |
| | |
| | |
| | |
Siam City Cement PCL NVDR | | |
| | |
Thai Life Insurance PCL NVDR | | |
| | |
Thai Union Group PCL NVDR | | |
TMBThanachart Bank PCL NVDR | | |
| | |
| | |
|
|
AG Anadolu Grubu Holding AS | | |
Ahlatci Dogal Gaz Dagitim Enerji VE Yatirim AS | | |
| | |
| | |
Aksa Akrilik Kimya Sanayii AS | | |
| | |
| | |
Alfa Solar Enerji Sanayi VE Ticaret AS | | |
Anadolu Anonim Turk Sigorta Sirketi * | | |
Anadolu Efes Biracilik Ve Malt Sanayii AS | | |
Anadolu Isuzu Otomotiv Sanayi Ve Ticaret AS, Class C | | |
| | |
Aselsan Elektronik Sanayi Ve Ticaret AS | | |
Astor Transformator Enerji Turizm Insaat Ve Petrol Sanayi Ticaret AS | | |
| | |
Baticim Bati Anadolu Cimento Sanayii AS * | | |
BIM Birlesik Magazalar AS | | |
Borusan Birlesik Boru Fabrikalari Sanayi ve Ticaret AS * | | |
Borusan Yatirim ve Pazarlama AS | | |
| | |
Cimsa Cimento Sanayi VE Ticaret AS | | |
| | |
CW Enerji Muhendislik Ticaret VE Sanayi AS | | |
Dogan Sirketler Grubu Holding AS | | |
Dogus Otomotiv Servis ve Ticaret AS | | |
EGE Endustri VE Ticaret AS | | |
EIS Eczacibasi Ilac ve Sinai ve Finansal Yatirimlar Sanayi ve Ticaret AS | | |
Emlak Konut Gayrimenkul Yatirim Ortakligi AS * | | |
| | |
| | |
Eregli Demir ve Celik Fabrikalari TAS | | |
Europen Endustri Insaat Sanayi VE Ticaret AS * | | |
Europower Enerji VE Otomasyon Teknolojileri Sanayi Ticaret AS * | | |
| | |
GEN Ilac VE Saglik Urunleri Sanayi VE Ticaret AS | | |
Girisim Elektrik Taahhut Ticaret Ve Sanayi AS * | | |
| | |
70
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Haci Omer Sabanci Holding AS | | |
| | |
| | |
Is Gayrimenkul Yatirim Ortakligi AS * | | |
Is Yatirim Menkul Degerler AS, Class A | | |
Iskenderun Demir ve Celik AS | | |
Izdemir Enerji Elektrik Uretim AS * | | |
Kaleseramik Canakkale Kalebodur Seramik Sanayi AS | | |
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS, Class D | | |
Kayseri Seker Fabrikasi AS | | |
| | |
Kimteks Poliuretan Sanayi VE Ticaret AS | | |
| | |
Kocaer Celik Sanayi Ve Ticaret AS | | |
Kontrolmatik Enerji Ve Muhendislik AS | | |
Konya Cimento Sanayii AS * | | |
Kordsa Teknik Tekstil AS * | | |
Koza Altin Isletmeleri AS * | | |
Koza Anadolu Metal Madencilik Isletmeleri AS * | | |
Margun Enerji Uretim Sanayi VE Ticaret AS * | | |
Mavi Giyim Sanayi Ve Ticaret AS, Class B | | |
| | |
| | |
MLP Saglik Hizmetleri AS * | | |
| | |
ODAS Elektrik Uretim ve Sanayi Ticaret AS * | | |
Otokar Otomotiv Ve Savunma Sanayi AS | | |
Oyak Cimento Fabrikalari AS * | | |
Oyak Yatirim Menkul Degerler AS * | | |
Pegasus Hava Tasimaciligi AS * | | |
Peker Gayrimenkul Yatirim Ortakligi AS * | | |
Petkim Petrokimya Holding AS * | | |
Politeknik Metal Sanayi ve Ticaret AS * | | |
| | |
Reeder Teknoloji Sanayi VE Ticaret AS * | | |
Sarkuysan Elektrolitik Bakir Sanayi ve Ticaret AS | | |
Sasa Polyester Sanayi AS * | | |
Selcuk Ecza Deposu Ticaret ve Sanayi AS | | |
Smart Gunes Enerjisi Teknolojileri ArGE Uretim Sanayi ve Ticaret AS * | | |
| | |
TAB Gida Sanayi Ve Ticaret AS, Class A | | |
TAV Havalimanlari Holding AS * | | |
| | |
Tofas Turk Otomobil Fabrikasi AS | | |
| | |
Turk Telekomunikasyon AS * | | |
Turk Traktor ve Ziraat Makineleri AS | | |
Turkcell Iletisim Hizmetleri AS | | |
Turkiye Garanti Bankasi AS | | |
Turkiye Halk Bankasi AS * | | |
Turkiye Is Bankasi AS, Class C | | |
Turkiye Petrol Rafinerileri AS | | |
| | |
Turkiye Sinai Kalkinma Bankasi AS * | | |
| | |
Turkiye Sise ve Cam Fabrikalari AS | | |
Turkiye Vakiflar Bankasi TAO, Class D * | | |
Ulker Biskuvi Sanayi AS * | | |
Vestel Beyaz Esya Sanayi ve Ticaret AS | | |
Vestel Elektronik Sanayi ve Ticaret AS * | | |
| | |
Yayla Agro Gida Sanayi VE Nakliyat AS | | |
YEO Teknoloji Enerji VE Endustri AS * | | |
Ziraat Gayrimenkul Yatirim Ortakligi AS | | |
Zorlu Enerji Elektrik Uretim AS * | | |
| | |
|
United Arab Emirates 1.7% |
Abu Dhabi Commercial Bank PJSC | | |
Abu Dhabi Islamic Bank PJSC | | |
Abu Dhabi National Oil Co. for Distribution PJSC | | |
Abu Dhabi Ports Co. PJSC * | | |
| | |
ADNOC Logistics & Services | | |
| | |
| | |
AL Seer Marine Supplies & Equipment Co. LLC * | | |
| | |
Alpha Dhabi Holding PJSC * | | |
Americana Restaurants International PLC - Foreign Co. | | |
Apex Investment Co. PSC * | | |
| | |
| | |
Dubai Electricity & Water Authority PJSC | | |
Dubai Financial Market PJSC | | |
| | |
| | |
| | |
| | |
Emirates Central Cooling Systems Corp. | | |
| | |
Emirates Telecommunications Group Co. PJSC | | |
| | |
First Abu Dhabi Bank PJSC | | |
| | |
| | |
National Marine Dredging Co. | | |
Pure Health Holding PJSC * | | |
| | |
| | |
| | |
Total Common Stocks
(Cost $6,566,973,279) | |
|
PREFERRED STOCKS 1.7% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
Centrais Eletricas Brasileiras SA, B Shares | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
71
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Cia Energetica de Minas Gerais | | |
Cia Paranaense de Energia - Copel, B Shares | | |
CTEEP-Cia de Transmissao de Energia Eletrica Paulista | | |
| | |
| | |
| | |
| | |
| | |
Unipar Carbocloro SA, B Shares | | |
Usinas Siderurgicas de Minas Gerais SA Usiminas, A Shares | | |
| | |
|
|
Embotelladora Andina SA, B Shares | | |
Sociedad Quimica y Minera de Chile SA, B Shares | | |
| | |
|
|
| | |
Total Preferred Stocks
(Cost $135,152,277) | |
|
RIGHTS 0.0% OF NET ASSETS |
|
|
|
expires 09/10/24, strike SAR 10.00 * | | |
|
|
|
expires 10/21/24, strike KRW 11,570.00 *(b) | | |
Total Rights
(Cost $1,240,015) | |
| | |
SHORT-TERM INVESTMENTS 1.9% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (d) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (d)(e) | | |
| | |
Total Short-Term Investments
(Cost $172,600,708) | |
| | |
Total Investments in Securities
(Cost $6,875,966,279) | |
| | |
| | |
| | |
| | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
MSCI Emerging Markets Index, expires 09/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $22,599,520. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| Trading in Russian securities listed on the Moscow Exchange, Russian ADRs, and Russian GDRs are subject to trade restrictions; and therefore, the ability of the fund to buy these securities is currently not permitted, and the ability of the fund to sell these securities is uncertain. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| American Depositary Receipt |
| Global Depositary Receipt |
| Non-Voting Depositary Receipt |
| Real Estate Investment Trust |
| |
| |
| |
72
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at August 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
73
Schwab Emerging Markets Equity ETF
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $6,875,966,279) including securities on loan of $22,599,520 | | |
Foreign currency, at value (cost $25,017,871) | | |
Deposit with broker for futures contracts | | |
| | |
| | |
Income from securities on loan | | |
Variation margin on future contracts | | |
| | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
Foreign capital gains tax | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
74
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab Emerging Markets Equity ETF
Statement of Operations
For the period September 1, 2023 through August 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $28,385,182) | | |
Interest received from securities - unaffiliated issuers | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Expense reduction by investment adviser | | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated issuers (net of foreign capital gains tax paid of $11,716,844) | | |
Net realized gains on sales of in-kind redemptions - unaffiliated issuers | | |
Net realized losses on futures contracts | | |
Net realized losses on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers (net of change in foreign capital gains tax of ($96,483,250)) | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Professional fees associated with the filing of foreign withholding tax claims in the European Union are deemed to be non-contingent and non-routine expenses of the fund (see financial notes 2(d) and 4 for additional information). |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
75
Schwab Emerging Markets Equity ETF
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
76
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETFs
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 International Dividend Equity ETF | Schwab Intermediate-Term U.S. Treasury ETF |
Schwab International Equity ETF | Schwab Long-Term U.S. Treasury ETF |
Schwab International Small-Cap Equity ETF | Schwab U.S. Aggregate Bond ETF |
Schwab Emerging Markets Equity ETF | Schwab 1-5 Year Corporate Bond ETF |
Schwab U.S. Broad Market ETF | Schwab 5-10 Year Corporate Bond ETF |
| Schwab Fundamental U.S. Broad Market ETF |
Schwab U.S. Large-Cap ETF | Schwab Fundamental U.S. Large Company ETF |
Schwab U.S. Large-Cap Growth ETF | Schwab Fundamental U.S. Small Company ETF |
Schwab U.S. Large-Cap Value ETF | Schwab Fundamental International Equity ETF |
| Schwab Fundamental International Small Equity ETF |
Schwab U.S. Small-Cap ETF | Schwab Fundamental Emerging Markets Equity ETF |
Schwab U.S. Dividend Equity ETF | |
| Schwab Crypto Thematic ETF |
Schwab Ultra-Short Income ETF | Schwab Municipal Bond ETF |
| Schwab High Yield Bond ETF |
Schwab Short-Term U.S. Treasury ETF | |
The funds issue and redeem shares at their net asset value per share (NAV) only in large blocks of shares (Creation Units). These transactions are usually in exchange for a basket of securities and/or an amount of cash. As a practical matter, only institutional investors who have entered into an authorized participant agreement purchase or redeem Creation Units. Except when aggregated in Creation Units, shares of the funds 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). A chart showing the frequency at which each fund’s daily closing market price was at a discount or premium to each fund’s NAV can be found at www.schwabassetmanagement.com
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. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
The Schwab International Dividend Equity ETF’s goal is to track as closely as possible, before fees and expenses, the total return of an index composed of high dividend yielding stocks issued by companies outside the United States. The fund generally invests in stocks that are included in the Dow Jones International Dividend 100 Index.
The Schwab International Equity ETF’s goal is to track as closely as possible, before fees and expenses, the total return of the FTSE Developed ex US Index.
The Schwab International Small-Cap Equity ETF’s goal is to track as closely as possible, before fees and expenses, the total return of the FTSE Developed Small Cap ex US Liquid Index.
The Schwab Emerging Markets Equity ETF’s goal is to track as closely as possible, before fees and expenses, the total return of the FTSE Emerging Index.
Schwab International Equity ETFs | Annual Holdings and Financial Statements
77
Schwab International Equity ETFs
Financial Notes (continued)
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The funds may invest in mutual funds and exchange-traded funds (ETFs), which are referred to as "underlying funds". For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports and holdings and financial statements, which are filed in Form N-CSR with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees (the Board) has designated authority to a Valuation Designee, the funds’ investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the funds’ portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee 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 the mean of 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.
● Futures contracts: Futures contracts are valued at their settlement prices as of the close of their exchanges.
● Mutual funds: Mutual funds are valued at their respective NAVs.
● Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value a fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s 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. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods 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. 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.
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 methods 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 it is determined 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 the Valuation Designee’s 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 investments — Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, ETFs and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held which could be Level 1, Level 2 or Level 3 in the fair value hierarchy.
78
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETFs
Financial Notes (continued)
2. Significant Accounting Policies (continued):
● 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 forward foreign currency exchange contracts, 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.
● Level 3 — significant unobservable inputs (including the Valuation Designee’s 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 readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore a fund’s results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the funds’ investments as of August 31, 2024, are disclosed in each fund’s 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 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 pursuant to Rule 2a-7 under 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 or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. 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. The aggregate fair 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. Securities lending fees paid to the unaffiliated lending agent start at 9% of gross lending revenue, with subsequent breakpoints to a low of 5%. In this context, the gross lending revenue equals the income received from the investment of cash collateral and fees paid by borrowers less any rebates paid to the borrowers. Any expenses charged by the cash collateral fund are in addition to these fees. All remaining revenue is retained by the fund, as applicable. No portion of lending revenue is paid to or retained by the investment adviser or any of its affiliates.
As of August 31, 2024, Schwab International Equity ETF, Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF had securities on loan, all of which were classified as common stocks and warrants. The value of the securities on loan and the related collateral as of August 31, 2024, are disclosed in each fund’s Portfolio Holdings and Statement of Assets and Liabilities.
Passive Foreign Investment Companies: Certain funds may own shares in certain foreign corporations that meet the Internal Revenue Code, as amended, definition of a Passive Foreign Investment Company (PFIC). The funds may elect for tax purposes to
Schwab International Equity ETFs | Annual Holdings and Financial Statements
79
Schwab International Equity ETFs
Financial Notes (continued)
2. Significant Accounting Policies (continued):
mark-to-market annually the shares of each PFIC lot held and would be required to distribute as ordinary income to shareholders any such marked to- market gains (as well as any gains realized on sale).
Central Securities Depositories Regulation: The Central Securities Depositories Regulation (CSDR) introduced measures for the authorization and supervision of European Union Central Security Depositories and created a common set of prudential, organizational, and conduct of business standards at a European level. CSDR is designed to support securities settlement and operational aspects of securities settlement, including the provision of shorter settlement periods; mandatory buy-ins; and cash penalties, to prevent and address settlement fails. CSDR measures are aimed to prevent settlement fails by ensuring that all transaction details are provided to facilitate settlement, as well as further incentivizing timely settlement by imposing cash penalty fines and buy-ins. The funds may be subject to pay cash penalties and may also receive cash penalties with certain counterparties in instances where there are settlement fails. These cash penalties are included in net realized gains (losses) on sales of securities in each fund’s Statement of Operations, if any.
(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 and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations in each fund’s Statement of Operations, if any. 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, if any.
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.
Interest income is recorded as it accrues. Dividends, in the form of cash or non-cash income such as in the form of additional securities, 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 date the ex-dividend is confirmed. 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.
The Schwab International Equity ETF, Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF filed claims to recover taxes previously withheld in certain European Union countries on the basis that those countries had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. These filings are subject to various administrative and judicial proceedings within these countries, and all professional fees associated with these filings have been paid by the investment adviser. The professional fees related to European Union foreign withholding tax claims are non-contingent and non-routine fees which are subject to repayment to the investment adviser (see financial note 4 for additional information).
For U.S. income tax purposes, European Union reclaims received reduce the amounts of foreign taxes that the fund passes through to its shareholders. If European Union reclaims received exceed foreign withholding taxes paid, the Schwab International Equity ETF, Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF will evaluate the requirements to enter into a
80
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETFs
Financial Notes (continued)
2. Significant Accounting Policies (continued):
closing agreement with the Internal Revenue Service (IRS) to address any prior years’ U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by fund shareholders on their tax returns in prior years. During the period ended August 31, 2024, the Schwab International Equity ETF, Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF did not incur any compliance fees.
Pursuant to the Amended and Restated Advisory Agreement (Advisory Agreement) between the investment adviser and the trust, the investment adviser will pay the operating expenses of the funds, excluding taxes, any brokerage expenses, and extraordinary or non-routine expenses. Taxes, any brokerage expenses and extraordinary or non-routine expenses that are specific to a fund are charged directly to the fund. The Advisory Agreement excludes paying acquired fund fees and expenses, which are indirect expenses incurred by a fund through its investments in underlying funds.
(f) Distributions to Shareholders:
The funds make distributions from net investment income, if any, semiannually for Schwab International Equity ETF, Schwab International Small Cap Equity ETF and Schwab Emerging Markets ETF, and quarterly for Schwab International Dividend Equity ETF, and from net realized capital gains, if any, once a year. To receive a distribution, you must be a registered shareholder on the record date. Distributions are paid to shareholders on the payable date.
(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 under subchapter M of the Internal Revenue Code, as amended. 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.
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 each fund’s Statement of Operations, if any. Foreign taxes accrued as of August 31, 2024, if any, are reflected in each fund’s Statement of Assets and Liabilities.
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.
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.
Schwab International Equity ETFs | Annual Holdings and Financial Statements
81
Schwab International Equity ETFs
Financial Notes (continued)
3. Risk Factors (continued):
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in the fund will fluctuate, which means that an investor could lose money over short or long periods.
Investment Style Risk. The funds are index funds. Therefore, each fund follows the securities included in its respective index, which may include real estate investment trusts, 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 the index. Errors relating to the index may occur from time to time and may not be identified by the index provider for a period of time. In addition, market disruptions could cause delays in the index’s rebalancing schedule. Such errors and/or market disruptions may result in losses for the fund.
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.
Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, a fund’s performance could be impacted.
Large-Cap Company Risk. Certain funds invest in large-cap company stocks. Large-cap companies are generally more mature and the securities issued by these companies may not be able to reach the same levels of growth as the securities issued by small- or mid-cap companies.
Mid-Cap Company Risk. Certain funds invest in mid-cap company stocks. Mid-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies and the value of securities issued by these companies may move sharply.
Small-Cap Company Risk. Certain funds invest in small-cap company stocks. Securities issued by small-cap companies may be riskier than those issued by larger companies, and their prices may move sharply, especially during market upturns and downturns.
Foreign Investment Risk. A fund’s investments in securities of foreign issuers involve certain risks that may be 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. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar. 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, in particular, many of which are issued by companies in emerging markets, may be more volatile. Foreign securities may also include investments in variable interest entities (VIEs) structures, which are created by China-based operating companies in jurisdictions outside of China to obtain indirect financing due to Chinese regulations that prohibit non-Chinese ownership of those companies. 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, regulatory and social conditions in those countries and the fund’s price may be more volatile than the price of a fund that is geographically diversified.
Emerging Markets Risk. 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, auditing, financial reporting and recordkeeping 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 developed countries. As a result, there may be an increased risk of illiquidity and 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.
82
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETFs
Financial Notes (continued)
3. Risk Factors (continued):
Sampling Index Tracking Risk. Each fund uses statistical sampling techniques, and as a result, a fund may not fully replicate its respective 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 a fund utilizes a sampling approach, it may not track the return of its respective index as well as it would if a fund purchased all of the securities in its index.
Tracking Error Risk. As index funds, each fund seeks to track the performance of its respective 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, liquidity risk and leverage risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to counterparty risk, lack of availability risk, valuation risk, correlation risk and tax risk. Counterparty risk is the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations either because the financial condition of the counterparty declines, or because the counterparty is otherwise unable or unwilling to perform under the contract. 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 gains. A fund’s use of derivatives could reduce the fund’s performance, increase its volatility, and cause the fund to lose more than the initial amount invested. A fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that a fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract. 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 fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the fund may have to sell them at a loss.
Leverage Risk. Certain fund transactions, such as derivatives transactions, may give rise to a form of leverage and may expose a fund to greater risk. Leverage tends to magnify the effect of any decrease or increase in the value of a fund’s portfolio securities which means even a small amount of leverage can have a disproportionately large impact on the fund. The use of leverage may cause a fund to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy its obligations.
Securities Lending Risk. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities 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, country 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 vulnerable to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector, country 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. An investor may pay more than NAV when buying shares of a fund in the secondary market, and an investor may receive less than NAV when selling those shares in the secondary market. The market price of fund shares may deviate, sometimes significantly, from NAV during periods of market volatility or market disruption, or as a result of other factors impacting foreign securities, including liquidity, irregular trading activity and timing differences between foreign markets where securities trade and the secondary market where fund shares are sold.
Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.
Schwab International Equity ETFs | Annual Holdings and Financial Statements
83
Schwab International Equity ETFs
Financial Notes (continued)
4. Affiliates and Affiliated Transactions:
Charles Schwab Investment Management, Inc., dba Schwab Asset Management, a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser pursuant to the Advisory Agreement between the investment adviser and the trust.
For its advisory services to the funds, the investment adviser is entitled to receive an annual management fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:
SCHWAB INTERNATIONAL DIVIDEND EQUITY ETF | SCHWAB INTERNATIONAL EQUITY ETF | SCHWAB INTERNATIONAL SMALL-CAP EQUITY ETF | SCHWAB EMERGING MARKETS EQUITY ETF |
| | | |
Investment from Affiliates
Certain funds in the Fund Complex may own shares of other funds in the Fund Complex. The table below reflects the percentages of shares of each fund in this report that are owned by other funds in the Fund Complex as of August 31, 2024, as applicable:
| |
| SCHWAB INTERNATIONAL DIVIDEND EQUITY ETF | SCHWAB INTERNATIONAL EQUITY ETF | SCHWAB INTERNATIONAL SMALL-CAP EQUITY ETF | SCHWAB EMERGING MARKETS EQUITY ETF |
Schwab International Opportunities Fund | | | | |
Schwab Monthly Income Fund - Flexible Payout | | | | |
Schwab Monthly Income Fund - Income Payout | | | | |
Schwab Monthly Income Fund - Target Payout | | | | |
Schwab Target 2010 Index Fund | | | | |
Schwab Target 2015 Index Fund | | | | |
Schwab Target 2020 Index Fund | | | | |
Schwab Target 2025 Index Fund | | | | |
Schwab Target 2030 Index Fund | | | | |
Schwab Target 2035 Index Fund | | | | |
Schwab Target 2040 Index Fund | | | | |
Schwab Target 2045 Index Fund | | | | |
Schwab Target 2050 Index Fund | | | | |
Schwab Target 2055 Index Fund | | | | |
Schwab Target 2060 Index Fund | | | | |
Schwab Target 2065 Index Fund | | | | |
Schwab VIT Balanced Portfolio | | | | |
Schwab VIT Balanced with Growth Portfolio | | | | |
Schwab VIT Growth Portfolio | | | | |
Other Affiliated Transactions
The professional fees related to European Union foreign withholding tax claims discussed in financial note 2(d) are non-contingent and non-routine fees. The investment adviser agreed to pay these professional fees, on behalf of the funds, subject to reimbursement by the funds to the extent the funds are able to successfully recover taxes withheld in the future.
84
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETFs
Financial Notes (continued)
4. Affiliates and Affiliated Transactions (continued):
During the period ended August 31, 2024, the professional fees incurred by the Schwab International Equity ETF, Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF and paid by the investment adviser were $98,451, $10,721 and $11,612, respectively, as shown as Professional fees in each fund’s Statement of Operations.
During the period ended August 31, 2024, Schwab Emerging Markets Equity ETF recovered interest on previously withheld foreign taxes from Poland. The payments received by Schwab Emerging Markets Equity ETF amounted to $261,195, and are recorded within Dividends received from securities — unaffiliated in the fund’s Statement of Operations. The investment adviser had paid upfront professional fees associated with recovering these foreign taxes in the amount of $11,612, which has been reimbursed to the investment adviser by the Schwab Emerging Markets Equity ETF and is recorded within Dividends received from securities - unaffiliated in the fund’s Statement of Operations. During the period ended August 31, 2024, Schwab International Equity ETF and Schwab International Small-Cap Equity ETF did not recover any previously withheld foreign taxes and made no reimbursements to the investment adviser.
As of August 31, 2024, the balance of professional fees related to foreign withholding tax subject to future reimbursement by the Schwab International Equity ETF and Schwab International Small-Cap Equity ETF to the investment adviser was $196,366 and $13,494 respectively. Schwab Emerging Markets Equity ETF had no balance of professional fees related to foreign withholding tax subject to future reimbursement by the funds to the investment adviser.
No other amounts for additional foreign withholding tax reclaims are reflected in the financial statements due to the uncertainty surrounding the ultimate resolution of proceedings, the likelihood of receipt of these claims, and the potential timing of payment.
The funds may engage in direct transactions with certain other funds in the Fund Complex in accordance with procedures adopted by the Board pursuant to Rule 17a-7 under the 1940 Act. When one fund is seeking to sell a security that another fund is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs while allowing each fund to execute the transaction at the current market price. This practice is limited to funds that share the same investment adviser, trustees and/or officers. The net realized gains or losses on sales of interfund transactions are recorded in Net realized gains (losses) on sales of securities - unaffiliated issuers and Net realized gains (losses) on sales of securities — affiliated issuers, as applicable in the Statement of Operations. For the period ended August 31, 2024, each fund’s purchases and sales of securities with other funds in the Fund Complex as well as any realized gains (losses) were as follows:
| | | |
Schwab International Dividend Equity ETF | | | |
Schwab International Equity ETF | | | |
Schwab International Small-Cap Equity ETF | | | |
Schwab Emerging Markets Equity ETF | | | |
Interfund Borrowing and Lending
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. 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. 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.
The Board may include people who are officers and/or directors of the investment adviser 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 funds did not pay any interested persons or non-interested persons (independent trustees). The independent trustees are paid by the investment adviser.
Schwab International Equity ETFs | Annual Holdings and Financial Statements
85
Schwab International Equity ETFs
Financial Notes (continued)
6. Borrowing from Banks:
During the period, the funds were participants with other funds in the Fund Complex in a joint, syndicated, committed $1 billion line of credit (the Syndicated Credit Facility), which matured on September 28, 2023. On September 28, 2023, the Syndicated Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on September 26, 2024. Under the terms of the Syndicated Credit Facility, in addition to the investment adviser paying the interest charged on any borrowings by a fund, the investment adviser paid a commitment fee of 0.15% per annum on the funds’ proportionate share of the unused portion of the Syndicated Credit Facility.
During the period, the funds were participants with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, which matured on September 28, 2023. On September 28, 2023, the Uncommitted Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on September 26, 2024. Under the terms of the Uncommitted Credit Facility, the investment adviser pays interest on the amount a fund borrows. There were no borrowings by any of the funds from either line of credit during the period.
The funds also have access to custodian overdraft facilities. A fund may have utilized the overdraft facility and incurred an interest expense, which is paid by the investment adviser. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
Certain funds entered into futures contracts during the report period to equitize available cash. 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.
As of August 31, 2024, the Statement of Assets and Liabilities included the following financial derivative instrument fair values held at period end:
| | |
| | |
Schwab International Dividend Equity ETF | | |
| | |
Schwab International Equity ETF | | |
| | |
Schwab International Small-Cap Equity ETF | | |
| | |
| |
| Includes cumulative unrealized appreciation of futures contracts as reported in the fund’s Portfolio Holdings. Only current day’s variation margin on futures contracts is reported in the Statement of Assets and Liabilities. |
| | |
Schwab Emerging Markets Equity ETF | | |
| | |
| |
| Includes cumulative unrealized appreciation of futures contracts as reported in the fund’s Portfolio Holdings. Only current day’s variation margin on futures contracts is reported in the Statement of Assets and Liabilities. |
86
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETFs
Financial Notes (continued)
7. Derivatives (continued):
The effects of the derivative contracts in the Statement of Operations for the period ended August 31, 2024, were:
| | |
Net Realized Gains (Losses) | | |
Schwab International Dividend Equity ETF | | |
| | |
Schwab International Equity ETF | | |
| | |
Schwab International Small-Cap Equity ETF | | |
| | |
Schwab Emerging Markets Equity ETF | | |
| | |
| |
| Statement of Operations location: Net realized gains (losses) on futures contracts. |
Net Change in Unrealized Appreciation (Depreciation) | | |
Schwab International Dividend Equity ETF | | |
| | |
Schwab International Equity ETF | | |
| | |
Schwab International Small-Cap Equity ETF | | |
| | |
Schwab Emerging Markets Equity ETF | | |
| | |
| |
| Statement of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts. |
During the period ended August 31, 2024, the month-end average notional amounts of futures contracts held by the funds and the month-end average number of contracts held were as follows:
| | |
Schwab International Dividend Equity ETF | | |
Schwab International Equity ETF | | |
Schwab International Small-Cap Equity ETF | | |
Schwab Emerging Markets Equity ETF | | |
8. Purchases and Sales of Investment Securities:For the period ended August 31, 2024, purchases and sales of securities (excluding in-kind transactions and short-term obligations) were as follows:
| | |
Schwab International Dividend Equity ETF | | |
Schwab International Equity ETF | | |
Schwab International Small-Cap Equity ETF | | |
Schwab Emerging Markets Equity ETF | | |
Schwab International Equity ETFs | Annual Holdings and Financial Statements
87
Schwab International Equity ETFs
Financial Notes (continued)
9. In-Kind Transactions:
The consideration for the purchase of Creation Units of a fund often 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. Variable charges paid to the fund generally have no effect on net asset value per share. In addition, purchasers and redeemers of shares in Creation Units are responsible for payment of the costs of transferring securities to or out of the fund. From time to time, the investment adviser 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, 2024, were as follows:
| IN-KIND PURCHASES
OF SECURITIES | IN-KIND SALES
OF SECURITIES |
Schwab International Dividend Equity ETF | | |
Schwab International Equity ETF | | |
Schwab International Small-Cap Equity ETF | | |
Schwab Emerging Markets Equity ETF | | |
For the period ended August 31, 2024, the funds may realize net capital gains or losses resulting from in-kind redemptions of Creation Units. Because such gains or losses are not taxable to the funds and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to capital received from investors at the end of the funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized gains or losses on sales of in-kind redemptions for the period ended August 31, 2024 are disclosed in the funds’ Statements of Operations, if any.
10. Federal Income Taxes:As of August 31, 2024, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
| | GROSS UNREALIZED
APPRECIATION | GROSS UNREALIZED
DEPRECIATION | NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
Schwab International Dividend Equity ETF | | | | |
Schwab International Equity ETF | | | | |
Schwab International Small-Cap Equity ETF | | | | |
Schwab Emerging Markets Equity ETF | | | | |
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, the realization for tax purposes of unrealized appreciation or depreciation on futures contracts, the realization for tax purposes of unrealized appreciation on investments in PFICs and partnership investments. The tax cost of the funds’ investments, disclosed above, have been adjusted from their book amounts to reflect these unrealized appreciation or depreciation differences, as applicable.
As of August 31, 2024, the components of distributable earnings on a tax basis were as follows:
| UNDISTRIBUTED
ORDINARY
INCOME | NET UNREALIZED
APPRECIATION
(DEPRECIATION)
ON INVESTMENTS | NET OTHER UNREALIZED
APPRECIATION
(DEPRECIATION) | CAPITAL LOSS
CARRYFORWARDS
AND OTHER LOSSES | |
Schwab International Dividend Equity ETF | | | | | |
Schwab International Equity ETF | | | | | |
Schwab International Small-Cap Equity ETF | | | | | |
Schwab Emerging Markets Equity ETF | | | | | |
88
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETFs
Financial Notes (continued)
10. Federal Income Taxes (continued):
Capital loss carryforwards have no expiration and may be used to offset future realized capital gains for federal income tax purposes. As of August 31, 2024, the funds had capital loss carryforwards available as follows:
| |
Schwab International Dividend Equity ETF | |
Schwab International Equity ETF | |
Schwab International Small-Cap Equity ETF | |
Schwab Emerging Markets Equity ETF | |
The tax basis components of distributions paid during the current and prior fiscal years were as follows:
| CURRENT FISCAL YEAR END DISTRIBUTIONS | PRIOR FISCAL YEAR END DISTRIBUTIONS |
| | |
Schwab International Dividend Equity ETF | | |
Schwab International Equity ETF | | |
Schwab International Small-Cap Equity ETF | | |
Schwab Emerging Markets Equity ETF | | |
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 reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts in the financial statements. The funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
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, 2024, 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 each fund’s Statement of Operations. During the fiscal year ended August 31, 2024, the funds did not incur any interest or penalties.
Effective September 25, 2024, the Board authorized a 2-for-1 share split for the Schwab International Equity ETF, which applied to shareholders of record as of the close of U.S. markets on October 09, 2024, and paid after the close of U.S. markets on October 10, 2024. Shares began trading at their post-split price on October 11, 2024. The share split did not change the total market value of a shareholder’s investment. The Financial Highlights, Statement of Assets and Liabilities and Statement of Changes in Net Assets for the Schwab International Equity ETF have been retroactively adjusted for the period ended August 31, 2024 and all prior periods to reflect the share split.
Other than the planned changes for the share splits discussed in Note 11, 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.
Schwab International Equity ETFs | Annual Holdings and Financial Statements
89
Schwab International Equity ETFs
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Schwab Strategic Trust and Shareholders of Schwab International Dividend Equity ETF, Schwab International Equity ETF, Schwab International Small-Cap Equity ETF, and Schwab Emerging Markets Equity ETF:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities, including the portfolio holdings, of Schwab International Dividend Equity ETF, Schwab International Equity ETF, Schwab International Small-Cap Equity ETF, and Schwab Emerging Markets Equity ETF (the “Funds”), four of the funds constituting Schwab Strategic Trust, as of August 31, 2024, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended for the Funds, except for Schwab International Dividend Equity ETF; the financial highlights for each of the three years in the period ended August 31, 2024 and for the period from April 29, 2021 (commencement of operations) through August 31, 2021; and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2024, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for the five years in the period then ended (excluding Schwab International Dividend Equity ETF) in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Schwab International Dividend Equity ETF as of August 31, 2024, and the results of its operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the three years in the period then ended and for the period from April 29, 2021 (commencement of operations) through August 31, 2021 in conformity with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2024, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
Denver, Colorado
October 17, 2024
We have served as the auditor of one or more investment companies in the Schwab Funds Complex since 2020.
90
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETFs
Investment Advisory Agreement Approval
The Investment Company Act of 1940, as amended (the 1940 Act), requires that the continuation of a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party thereto (the Independent Trustees), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.
The Board of Trustees (the Board or the Trustees, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory agreement (the Agreement) between Schwab Strategic Trust (the Trust) and Charles Schwab Investment Management, Inc. (CSIM) (dba Schwab Asset Management) (the investment adviser) with respect to the existing funds in the Trust, including Schwab International Equity ETF, Schwab International Small-Cap Equity ETF, Schwab Emerging Markets Equity ETF and Schwab International Dividend Equity ETF (the Funds), and to review certain other agreements pursuant to which the investment adviser provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by the investment adviser, including information about the investment adviser’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. As part of the renewal process, the Independent Trustees’ legal counsel, on behalf of the Independent Trustees, sends an information request letter to the investment adviser seeking certain relevant information. The responses by the investment adviser are provided to the Trustees in the Board materials for their review prior to their meeting, and the Trustees are provided with the opportunity to request any additional materials. The Board also receives data provided by an independent provider of investment company data. This information is in addition to the detailed information about the Funds that the Board reviews during the course of each year, including information that relates to the Funds’ operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. In considering the renewal, the Independent Trustees receive advice from Independent Trustees’ legal counsel, including a memorandum regarding the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees participate in question and answer sessions with representatives of the investment adviser and meet in executive session outside the presence of Fund management.
The Board, including a majority of the Independent Trustees, considered information specifically relating to the continuance of the Agreement with respect to the Funds at meetings held on May 2, 2024 and June 6, 2024, and approved the renewal of the Agreement with respect to the Funds for an additional one-year term at the meeting on June 6, 2024 called for the purpose of voting on such approval.
The Board’s approval of the continuance of the Agreement with respect to the Funds was based on consideration and evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:
1.
the nature, extent and quality of the services provided to each Fund under the Agreement, including the resources of the investment adviser and its affiliates dedicated to the Funds;
2.
each Fund’s investment performance and how it compared to that of certain other comparable exchange-traded funds and benchmark data;
3.
each Fund’s expenses and how those expenses compared to those of certain other similar exchange-traded funds;
4.
the profitability of the investment adviser and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to each Fund, including both direct and indirect benefits accruing to the investment adviser and its affiliates; and
5.
the extent to which economies of scale would be realized as each Fund grows and whether fee levels in the Agreement reflect those economies of scale for the benefit of Fund investors.
Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided by the investment adviser to the Funds and the resources of the investment adviser and its affiliates dedicated to the Funds. In this regard, the Trustees evaluated, among other things, the investment adviser’s experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by the investment adviser relating to services and support provided with respect to the Funds’ portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, and vendor and risk oversight. The Trustees also considered the investment adviser’s continued investment in its infrastructure, including the investment adviser’s technology and use of data, business continuity, cybersecurity, due diligence, risk management processes, and information security programs. The Trustees considered Schwab’s overall financial condition and reputation as a full service brokerage firm, as well as the wide range of products, services and
Schwab International Equity ETFs | Annual Holdings and Financial Statements
91
Schwab International Equity ETFs
account features that benefit Fund shareholders who are brokerage clients of Schwab. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by the investment adviser to the Funds and the resources of the investment adviser and its affiliates dedicated to the Funds supported renewal of the Agreement with respect to the Funds.
Fund Performance. The Board considered each Fund’s performance in determining whether to renew the Agreement with respect to such Fund. Specifically, the Trustees considered each Fund’s performance relative to a peer category of other exchange-traded funds and applicable indices/benchmarks, in light of total return and the market environment, as well as in consideration of each Fund’s investment style and strategy. As part of this review, the Trustees considered the composition of the peer category, selection criteria and the reputation of the independent provider of investment company data who prepared the peer category analysis. In evaluating the performance of each Fund, the Trustees considered the risk profile for such Fund and such Fund’s demonstrated performance in tracking its benchmark index. The Trustees noted that the Funds had closely tracked their respective indexes in 2023, with all of the Funds performing in their expected performance ranges. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and the investment adviser’s profitability discussed below and also noted that the Board and a designated committee of the Board review performance throughout the year. Following such evaluation, the Board concluded, within the context of its full deliberations, that the performance of each Fund supported renewal of the Agreement with respect to such Fund.
Fund Expenses. With respect to each Fund’s expenses, the Trustees considered the rate of compensation called for by the Agreement and each Fund’s operating expense ratio, in each case in comparison to those of other similar exchange-traded funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. The investment adviser reported to the Board, and the Board took into account, the risk assumed by the investment adviser in the development of the Funds and provision of services as well as the competitive marketplace for financial products. The Trustees also considered fees charged by the investment adviser to mutual funds and other exchange-traded funds that it manages. The Board evaluated the Funds’ unitary fee through review of comparative information with respect to fees paid by other similar exchange-traded funds tracking international equity indexes. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of each Fund are reasonable and supported renewal of the Agreement with respect to such Fund.
Profitability. The Trustees considered the compensation flowing to the investment adviser and its affiliates, directly or indirectly and reviewed profitability on a pre-tax basis, without regard to distribution expenses. The Trustees reviewed
profitability of the investment adviser relating to the Schwab fund complex as a whole, noting the benefits to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain costs across the Funds and other funds in the complex. The Trustees also considered any other benefits derived by the investment adviser from its relationship with the Funds, such as whether, by virtue of its management of the Funds, the investment adviser obtains investment information or other research resources that aid it in providing advisory services to other clients. The Trustees considered whether the compensation and profitability with respect to the Funds under the Agreement and other service agreements were reasonable in light of the quality of all services rendered to the Funds by the investment adviser and its affiliates. The Trustees noted that the investment adviser continues to invest substantial sums in its business in order to provide enhanced research capabilities, services and systems to benefit the Funds. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of the investment adviser with respect to each Fund is reasonable and supported renewal of the Agreement with respect to such Fund.
Economies of Scale. Although the Trustees recognized the difficulty of determining economies of scale with precision, and although the Funds do not have breakpoints in their advisory fees, the Trustees considered the potential existence of any economies of scale by way of the relatively low advisory fee and unitary fee structure of the Funds and whether those are passed along to a Fund’s shareholders through (i) the enhancement of services provided to the Funds in return for fees paid, including through investments by the investment adviser in its infrastructure, including modernizing the investment adviser’s technology and use of data, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence and information security programs, which are designed to provide enhanced services to the Funds and their shareholders; and (ii) pricing a fund to scale and keeping overall expenses down as the fund grows. The Trustees acknowledged that the investment adviser has invested in its infrastructure, as discussed above, over time and noted the impact of regulatory and other developments on the investment adviser’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Funds. Based on this evaluation, the Board concluded, within the context of its full deliberations, that each Fund obtains reasonable benefits from economies of scale.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
In the course of their deliberations, the Trustees may have accorded different weights to various factors and did not identify any particular information or factor that was all important or controlling. Based on the Trustees’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, approved the continuation of the Agreement with respect to the Funds and concluded that the compensation under the Agreement with respect to the Funds is fair and reasonable in light of the
92
Schwab International Equity ETFs | Annual Holdings and Financial Statements
Schwab International Equity ETFs
services provided and the related expenses borne by the investment adviser and its affiliates and such other matters as the Trustees considered to be relevant in the exercise of their reasonable judgment.
Schwab International Equity ETFs | Annual Holdings and Financial Statements
93
Annual Holdings and Financial Statements | August 31, 2024
Schwab U.S. Equity 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. Small-Cap ETF | |
Schwab U.S. Dividend Equity ETF | |
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset Management®
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 MSCI 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 Portfolio Holdings are sub-categories of Sector classifications.
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
1
Schwab U.S. Broad Market ETF
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)3 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| Per-Share Data has been retroactively adjusted to reflect a 3-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
| Per-Share Data has been retroactively adjusted to reflect a 2-for-1 share split effective after the close of U.S. markets on March 10, 2022. |
| Calculated based on the average shares outstanding during the period. |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
2
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024
| | |
COMMON STOCKS 99.8% OF NET ASSETS |
|
Automobiles & Components 1.5% |
| | |
American Axle & Manufacturing Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fox Factory Holding Corp. * | | |
| | |
| | |
| | |
| | |
Goodyear Tire & Rubber Co. * | | |
| | |
| | |
| | |
| | |
| | |
Luminar Technologies, Inc. *(a) | | |
Mobileye Global, Inc., Class A * | | |
Modine Manufacturing Co. * | | |
| | |
| | |
| | |
Rivian Automotive, Inc., Class A * | | |
| | |
Standard Motor Products, Inc. | | |
| | |
| | |
| | |
| | |
Winnebago Industries, Inc. | | |
Workhorse Group, Inc. *(a) | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Atlantic Union Bankshares Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Berkshire Hills Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Capitol Federal Financial, Inc. | | |
| | |
Central Pacific Financial Corp. | | |
| | |
Citizens Financial Group, Inc. | | |
Citizens Financial Services, Inc. | | |
| | |
Columbia Banking System, Inc. | | |
Columbia Financial, Inc. * | | |
| | |
Commerce Bancshares, Inc. | | |
Community Financial System, Inc. | | |
Community Trust Bancorp, Inc. | | |
| | |
CrossFirst Bankshares, Inc. * | | |
Cullen/Frost Bankers, Inc. | | |
Customers Bancorp, Inc. * | | |
| | |
Dime Community Bancshares, Inc. | | |
| | |
| | |
| | |
Enterprise Financial Services Corp. | | |
| | |
| | |
Financial Institutions, Inc. | | |
| | |
First Bancorp/Southern Pines NC | | |
| | |
| | |
First Citizens BancShares, Inc., Class A | | |
First Commonwealth Financial Corp. | | |
First Community Bankshares, Inc. | | |
| | |
First Financial Bankshares, Inc. | | |
| | |
| | |
| | |
| | |
First Interstate BancSystem, Inc., Class A | | |
| | |
First Mid Bancshares, Inc. | | |
First of Long Island Corp. | | |
| | |
| | |
| | |
German American Bancorp, Inc. | | |
| | |
Great Southern Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
Heartland Financial USA, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
Independent Bank Group, Inc. | | |
International Bancshares Corp. | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
3
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
Live Oak Bancshares, Inc. | | |
| | |
| | |
Metrocity Bankshares, Inc. | | |
Midland States Bancorp, Inc. | | |
National Bank Holdings Corp., Class A | | |
| | |
| | |
New York Community Bancorp, Inc. | | |
| | |
| | |
Northwest Bancshares, Inc. | | |
OceanFirst Financial Corp. | | |
| | |
| | |
| | |
| | |
Pacific Premier Bancorp, Inc. | | |
| | |
| | |
Peapack-Gladstone Financial Corp. | | |
| | |
Pinnacle Financial Partners, Inc. | | |
PNC Financial Services Group, Inc. | | |
| | |
| | |
| | |
Prosperity Bancshares, Inc. | | |
Provident Financial Services, Inc. | | |
| | |
| | |
| | |
Republic Bancorp, Inc., Class A | | |
| | |
Sandy Spring Bancorp, Inc. | | |
Seacoast Banking Corp. of Florida | | |
ServisFirst Bancshares, Inc. | | |
Simmons First National Corp., Class A | | |
Southside Bancshares, Inc. | | |
| | |
| | |
Stock Yards Bancorp, Inc. | | |
| | |
Texas Capital Bancshares, Inc. * | | |
| | |
| | |
| | |
| | |
Triumph Financial, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
United Community Banks, Inc. | | |
| | |
| | |
| | |
| | |
Washington Trust Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Advanced Drainage Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Albany International Corp., Class A | | |
| | |
Allison Transmission Holdings, Inc. | | |
Ameresco, Inc., Class A * | | |
American Woodmark Corp. * | | |
| | |
| | |
| | |
Applied Industrial Technologies, Inc. | | |
Archer Aviation, Inc., Class A *(a) | | |
| | |
| | |
Armstrong World Industries, Inc. | | |
Array Technologies, Inc. * | | |
| | |
| | |
Atmus Filtration Technologies, Inc. | | |
| | |
| | |
| | |
| | |
Beacon Roofing Supply, Inc. * | | |
| | |
Bloom Energy Corp., Class A * | | |
| | |
BlueLinx Holdings, Inc. * | | |
| | |
| | |
Builders FirstSource, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Centuri Holdings, Inc. *(a) | | |
ChargePoint Holdings, Inc. *(a) | | |
| | |
| | |
| | |
Comfort Systems USA, Inc. | | |
Construction Partners, Inc., Class A * | | |
Core & Main, Inc., Class A * | | |
| | |
| | |
| | |
4
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
Custom Truck One Source, Inc. * | | |
| | |
Desktop Metal, Inc., Class A *(a) | | |
Distribution Solutions Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ferguson Enterprises, Inc. | | |
| | |
| | |
| | |
| | |
Fortune Brands Innovations, Inc. | | |
Franklin Electric Co., Inc. | | |
| | |
FuelCell Energy, Inc. *(a) | | |
Gates Industrial Corp. PLC * | | |
| | |
| | |
| | |
| | |
| | |
Gibraltar Industries, Inc. * | | |
| | |
| | |
| | |
| | |
GrafTech International Ltd. * | | |
Granite Construction, Inc. | | |
Great Lakes Dredge & Dock Corp. * | | |
| | |
| | |
H&E Equipment Services, Inc. | | |
| | |
| | |
Helios Technologies, Inc. | | |
| | |
| | |
| | |
Hillman Solutions Corp. * | | |
Honeywell International, Inc. | | |
| | |
| | |
Huntington Ingalls Industries, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
| | |
Janus International Group, Inc. * | | |
| | |
John Bean Technologies Corp. | | |
Johnson Controls International PLC | | |
| | |
| | |
Kratos Defense & Security Solutions, Inc. * | | |
L3Harris Technologies, Inc. | | |
Lennox International, Inc. | | |
| | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
MDU Resources Group, Inc. | | |
| | |
| | |
Montana Technologies Corp. *(a) | | |
| | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
Mueller Water Products, Inc., Class A | | |
| | |
National Presto Industries, Inc. | | |
| | |
NEXTracker, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Preformed Line Products Co. | | |
| | |
| | |
Quanex Building Products Corp. | | |
| | |
| | |
| | |
Resideo Technologies, Inc. * | | |
| | |
| | |
Rockwell Automation, Inc. | | |
| | |
Rush Enterprises, Inc., Class A | | |
Sensata Technologies Holding PLC | | |
| | |
Shoals Technologies Group, Inc., Class A * | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
5
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
Simpson Manufacturing Co., Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
| | |
Southland Holdings, Inc. * | | |
Spirit AeroSystems Holdings, Inc., Class A * | | |
| | |
Standex International Corp. | | |
Stanley Black & Decker, Inc. | | |
| | |
Sterling Infrastructure, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Terran Orbital Corp. *(a) | | |
| | |
Thermon Group Holdings, Inc. * | | |
| | |
Titan International, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Virgin Galactic Holdings, Inc. * | | |
| | |
| | |
Watts Water Technologies, Inc., Class A | | |
WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
WillScot Holdings Corp. * | | |
| | |
| | |
| | |
| | |
Zurn Elkay Water Solutions Corp. | | |
| | |
|
Commercial & Professional Services 1.6% |
| | |
| | |
ACV Auctions, Inc., Class A * | | |
| | |
Automatic Data Processing, Inc. | | |
Barrett Business Services, Inc. | | |
Blacksky Technology, Inc. * | | |
Booz Allen Hamilton Holding Corp., Class A | | |
| | |
BrightView Holdings, Inc. * | | |
| | |
| | |
Broadridge Financial Solutions, Inc. | | |
CACI International, Inc., Class A * | | |
Casella Waste Systems, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
CSG Systems International, Inc. | | |
| | |
| | |
Driven Brands Holdings, Inc. * | | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
| | |
| | |
ExlService Holdings, Inc. * | | |
| | |
| | |
FiscalNote Holdings, Inc. * | | |
Forrester Research, Inc. * | | |
| | |
| | |
| | |
| | |
Healthcare Services Group, Inc. * | | |
Heidrick & Struggles International, Inc. | | |
| | |
Huron Consulting Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Kelly Services, Inc., Class A | | |
| | |
| | |
LanzaTech Global, Inc. *(a) | | |
| | |
| | |
Liquidity Services, Inc. * | | |
| | |
Matthews International Corp., Class A | | |
| | |
| | |
Montrose Environmental Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Paylocity Holding Corp. * | | |
| | |
| | |
| | |
| | |
Resources Connection, Inc. | | |
| | |
| | |
6
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
UL Solutions, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 5.2% |
1-800-Flowers.com, Inc., Class A * | | |
| | |
Abercrombie & Fitch Co., Class A * | | |
Academy Sports & Outdoors, Inc. | | |
| | |
A-Mark Precious Metals, Inc. | | |
| | |
American Eagle Outfitters, Inc. | | |
America's Car-Mart, Inc. * | | |
| | |
| | |
Asbury Automotive Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Boot Barn Holdings, Inc. * | | |
| | |
Burlington Stores, Inc. * | | |
| | |
Camping World Holdings, Inc., Class A | | |
| | |
| | |
| | |
Designer Brands, Inc., Class A | | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
| | |
GameStop Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Haverty Furniture Cos., Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
National Vision Holdings, Inc. * | | |
| | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. | | |
Petco Health & Wellness Co., Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Sally Beauty Holdings, Inc. * | | |
Savers Value Village, Inc. * | | |
| | |
| | |
| | |
Sonic Automotive, Inc., Class A | | |
Sportsman's Warehouse Holdings, Inc. * | | |
Stitch Fix, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Victoria's Secret & Co. * | | |
Warby Parker, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 1.1% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Century Communities, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Dream Finders Homes, Inc., Class A * | | |
Ethan Allen Interiors, Inc. | | |
| | |
| | |
| | |
G-III Apparel Group Ltd. * | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
7
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Green Brick Partners, Inc. * | | |
| | |
| | |
| | |
Installed Building Products, Inc. | | |
| | |
Johnson Outdoors, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
Levi Strauss & Co., Class A | | |
| | |
Lululemon Athletica, Inc. * | | |
| | |
Malibu Boats, Inc., Class A * | | |
| | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Peloton Interactive, Inc., Class A * | | |
| | |
| | |
Purple Innovation, Inc. * | | |
| | |
| | |
Skechers USA, Inc., Class A * | | |
Smith & Wesson Brands, Inc. | | |
Solo Brands, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Taylor Morrison Home Corp. * | | |
Tempur Sealy International, Inc. | | |
| | |
| | |
Topgolf Callaway Brands Corp. * | | |
| | |
| | |
Tupperware Brands Corp. *(a)(b) | | |
Under Armour, Inc., Class A * | | |
| | |
| | |
Vizio Holding Corp., Class A * | | |
| | |
Wolverine World Wide, Inc. | | |
Worthington Enterprises, Inc. | | |
| | |
| | |
|
|
Accel Entertainment, Inc. * | | |
| | |
Adtalem Global Education, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Bowlero Corp., Class A (a) | | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Brinker International, Inc. * | | |
Caesars Entertainment, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Chipotle Mexican Grill, Inc. * | | |
Choice Hotels International, Inc. (a) | | |
| | |
| | |
| | |
Cracker Barrel Old Country Store, Inc. | | |
| | |
Dave & Buster's Entertainment, Inc. * | | |
| | |
| | |
| | |
DoorDash, Inc., Class A * | | |
DraftKings, Inc., Class A * | | |
| | |
Dutch Bros, Inc., Class A * | | |
El Pollo Loco Holdings, Inc. * | | |
European Wax Center, Inc., Class A * | | |
| | |
| | |
First Watch Restaurant Group, Inc. * | | |
| | |
Global Business Travel Group I * | | |
Golden Entertainment, Inc. | | |
Graham Holdings Co., Class B | | |
Grand Canyon Education, Inc. * | | |
| | |
Hilton Grand Vacations, Inc. * | | |
Hilton Worldwide Holdings, Inc. | | |
Hyatt Hotels Corp., Class A | | |
| | |
| | |
Kura Sushi USA, Inc., Class A *(a) | | |
| | |
| | |
Life Time Group Holdings, Inc. * | | |
| | |
Lindblad Expeditions Holdings, Inc. * | | |
Marriott International, Inc., Class A | | |
Marriott Vacations Worldwide Corp. | | |
| | |
MGM Resorts International * | | |
| | |
Monarch Casino & Resort, Inc. | | |
Norwegian Cruise Line Holdings Ltd. * | | |
OneSpaWorld Holdings Ltd. | | |
Papa John's International, Inc. | | |
Penn Entertainment, Inc. * | | |
| | |
Planet Fitness, Inc., Class A * | | |
Playa Hotels & Resorts NV * | | |
Portillo's, Inc., Class A * | | |
RCI Hospitality Holdings, Inc. | | |
Red Rock Resorts, Inc., Class A | | |
Royal Caribbean Cruises Ltd. * | | |
Rush Street Interactive, Inc. * | | |
| | |
Service Corp. International | | |
8
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Shake Shack, Inc., Class A * | | |
Six Flags Entertainment Corp. | | |
| | |
Strategic Education, Inc. | | |
| | |
Sweetgreen, Inc., Class A * | | |
Target Hospitality Corp. * | | |
| | |
| | |
| | |
United Parks & Resorts, Inc. * | | |
| | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
Xponential Fitness, Inc., Class A * | | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.8% |
Albertsons Cos., Inc., Class A | | |
| | |
BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
| | |
| | |
| | |
| | |
Grocery Outlet Holding Corp. * | | |
Ingles Markets, Inc., Class A | | |
| | |
Performance Food Group Co. * | | |
| | |
| | |
Sprouts Farmers Market, Inc. * | | |
| | |
| | |
U.S. Foods Holding Corp. * | | |
United Natural Foods, Inc. * | | |
Walgreens Boots Alliance, Inc. | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Atlas Energy Solutions, Inc. | | |
| | |
| | |
| | |
| | |
California Resources Corp. | | |
Centrus Energy Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Clean Energy Fuels Corp. * | | |
| | |
Comstock Resources, Inc. (a) | | |
| | |
| | |
| | |
| | |
| | |
Crescent Energy Co., Class A | | |
| | |
Delek U.S. Holdings, Inc. | | |
| | |
Diamond Offshore Drilling, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Excelerate Energy, Inc., Class A | | |
Expro Group Holdings NV * | | |
| | |
Granite Ridge Resources, Inc. | | |
| | |
| | |
| | |
Helix Energy Solutions Group, Inc. * | | |
| | |
| | |
| | |
HighPeak Energy, Inc. (a) | | |
International Seaways, Inc. | | |
| | |
| | |
Kodiak Gas Services, Inc. | | |
| | |
| | |
Magnolia Oil & Gas Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
New Fortress Energy, Inc. (a) | | |
| | |
| | |
| | |
| | |
Occidental Petroleum Corp. | | |
Oceaneering International, Inc. * | | |
| | |
| | |
Par Pacific Holdings, Inc. * | | |
Patterson-UTI Energy, Inc. | | |
PBF Energy, Inc., Class A | | |
| | |
| | |
| | |
ProFrac Holding Corp., Class A * | | |
| | |
| | |
REX American Resources Corp. * | | |
Riley Exploration Permian, Inc. | | |
| | |
| | |
| | |
| | |
Select Water Solutions, Inc. | | |
Sitio Royalties Corp., Class A | | |
| | |
Southwestern Energy Co. * | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
9
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
TETRA Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Weatherford International PLC | | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 2.6% |
| | |
| | |
Alexander & Baldwin, Inc. | | |
| | |
Alexandria Real Estate Equities, Inc. | | |
American Assets Trust, Inc. | | |
American Healthcare REIT, Inc. | | |
American Homes 4 Rent, Class A | | |
| | |
Americold Realty Trust, Inc. | | |
Apartment Investment & Management Co., Class A * | | |
Apple Hospitality REIT, Inc. | | |
Armada Hoffler Properties, Inc. | | |
AvalonBay Communities, Inc. | | |
| | |
Brixmor Property Group, Inc. | | |
Broadstone Net Lease, Inc. | | |
| | |
| | |
| | |
CBL & Associates Properties, Inc. | | |
| | |
| | |
| | |
Community Healthcare Trust, Inc. | | |
| | |
| | |
| | |
| | |
DiamondRock Hospitality Co. | | |
Digital Realty Trust, Inc. | | |
Diversified Healthcare Trust (b) | | |
| | |
Easterly Government Properties, Inc. | | |
EastGroup Properties, Inc. | | |
| | |
Empire State Realty Trust, Inc., Class A | | |
| | |
| | |
| | |
Equity LifeStyle Properties, Inc. | | |
| | |
Essential Properties Realty Trust, Inc. | | |
Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Federal Realty Investment Trust | | |
| | |
First Industrial Realty Trust, Inc. | | |
Four Corners Property Trust, Inc. | | |
Franklin Street Properties Corp., Class C | | |
Gaming & Leisure Properties, Inc. | | |
| | |
Gladstone Commercial Corp. | | |
Global Medical REIT, Inc. | | |
| | |
Healthcare Realty Trust, Inc. | | |
Healthpeak Properties, Inc. | | |
Highwoods Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
Hudson Pacific Properties, Inc. | | |
Independence Realty Trust, Inc. | | |
Industrial Logistics Properties Trust | | |
Innovative Industrial Properties, Inc. | | |
InvenTrust Properties Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Lamar Advertising Co., Class A | | |
| | |
| | |
| | |
| | |
Medical Properties Trust, Inc. (a) | | |
Mid-America Apartment Communities, Inc. | | |
National Health Investors, Inc. | | |
National Storage Affiliates Trust | | |
| | |
NexPoint Diversified Real Estate Trust | | |
NexPoint Residential Trust, Inc. | | |
| | |
Office Properties Income Trust | | |
Omega Healthcare Investors, Inc. | | |
One Liberty Properties, Inc. | | |
| | |
| | |
| | |
Park Hotels & Resorts, Inc. | | |
| | |
| | |
Phillips Edison & Co., Inc. | | |
Piedmont Office Realty Trust, Inc., Class A | | |
Plymouth Industrial REIT, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Retail Opportunity Investments Corp. | | |
Rexford Industrial Realty, Inc. | | |
| | |
Ryman Hospitality Properties, Inc. | | |
Sabra Health Care REIT, Inc. | | |
| | |
| | |
| | |
| | |
Simon Property Group, Inc. | | |
| | |
10
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
Summit Hotel Properties, Inc. | | |
| | |
Sunstone Hotel Investors, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Universal Health Realty Income Trust | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Xenia Hotels & Resorts, Inc. | | |
| | |
|
|
Affiliated Managers Group, Inc. | | |
Affirm Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Ameriprise Financial, Inc. | | |
Annaly Capital Management, Inc. | | |
Apollo Commercial Real Estate Finance, Inc. | | |
Apollo Global Management, Inc. | | |
Arbor Realty Trust, Inc. (a) | | |
ARES Management Corp., Class A | | |
ARMOUR Residential REIT, Inc. | | |
Artisan Partners Asset Management, Inc., Class A | | |
AssetMark Financial Holdings, Inc. * | | |
AvidXchange Holdings, Inc. * | | |
B Riley Financial, Inc. (a) | | |
Bank of New York Mellon Corp. | | |
Berkshire Hathaway, Inc., Class B * | | |
| | |
| | |
Blackstone Mortgage Trust, Inc., Class A | | |
| | |
| | |
| | |
Bread Financial Holdings, Inc. | | |
Brightsphere Investment Group, Inc. | | |
BrightSpire Capital, Inc. | | |
| | |
| | |
Capital One Financial Corp. | | |
| | |
Cass Information Systems, Inc. | | |
Cboe Global Markets, Inc. | | |
| | |
| | |
Claros Mortgage Trust, Inc. | | |
| | |
| | |
Coinbase Global, Inc., Class A * | | |
| | |
Corebridge Financial, Inc. | | |
| | |
Credit Acceptance Corp. * | | |
Diamond Hill Investment Group, Inc. | | |
Discover Financial Services | | |
Donnelley Financial Solutions, Inc. * | | |
| | |
Ellington Financial, Inc. | | |
| | |
Encore Capital Group, Inc. * | | |
Enova International, Inc. * | | |
| | |
| | |
Euronet Worldwide, Inc. * | | |
| | |
| | |
FactSet Research Systems, Inc. | | |
Federal Agricultural Mortgage Corp., Class C | | |
| | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
| | |
Forge Global Holdings, Inc. * | | |
Franklin BSP Realty Trust, Inc. | | |
| | |
| | |
Goldman Sachs Group, Inc. | | |
Green Dot Corp., Class A * | | |
HA Sustainable Infrastructure Capital, Inc. | | |
Hamilton Lane, Inc., Class A | | |
| | |
Interactive Brokers Group, Inc., Class A | | |
Intercontinental Exchange, Inc. | | |
International Money Express, Inc. * | | |
| | |
Invesco Mortgage Capital, Inc. | | |
Jack Henry & Associates, Inc. | | |
Jackson Financial, Inc., Class A | | |
Janus Henderson Group PLC | | |
Jefferies Financial Group, Inc. | | |
| | |
KKR Real Estate Finance Trust, Inc. | | |
| | |
| | |
| | |
| | |
LPL Financial Holdings, Inc. | | |
MarketAxess Holdings, Inc. | | |
| | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
11
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
NerdWallet, Inc., Class A * | | |
New York Mortgage Trust, Inc. | | |
| | |
NMI Holdings, Inc., Class A * | | |
| | |
| | |
Open Lending Corp., Class A * | | |
| | |
| | |
PennyMac Financial Services, Inc. | | |
PennyMac Mortgage Investment Trust | | |
| | |
PJT Partners, Inc., Class A | | |
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Robinhood Markets, Inc., Class A * | | |
Rocket Cos., Inc., Class A * | | |
| | |
| | |
Shift4 Payments, Inc., Class A * | | |
| | |
SoFi Technologies, Inc. * | | |
Starwood Property Trust, Inc. | | |
| | |
StepStone Group, Inc., Class A | | |
| | |
| | |
| | |
T. Rowe Price Group, Inc. | | |
| | |
TPG RE Finance Trust, Inc. | | |
| | |
Tradeweb Markets, Inc., Class A | | |
Two Harbors Investment Corp. | | |
| | |
| | |
Victory Capital Holdings, Inc., Class A | | |
Virtu Financial, Inc., Class A | | |
Virtus Investment Partners, Inc. | | |
| | |
| | |
| | |
Waterstone Financial, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 2.5% |
| | |
Archer-Daniels-Midland Co. | | |
| | |
| | |
Boston Beer Co., Inc., Class A * | | |
| | |
Brown-Forman Corp., Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Coca-Cola Consolidated, Inc. | | |
| | |
Constellation Brands, Inc., Class A | | |
Darling Ingredients, Inc. * | | |
Duckhorn Portfolio, Inc. * | | |
| | |
Fresh Del Monte Produce, Inc. | | |
| | |
| | |
Hain Celestial Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
John B Sanfilippo & Son, Inc. | | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
| | |
McCormick & Co., Inc. - Non Voting Shares | | |
| | |
| | |
Molson Coors Beverage Co., Class B | | |
Mondelez International, Inc., Class A | | |
| | |
| | |
| | |
Philip Morris International, Inc. | | |
| | |
| | |
| | |
| | |
Tootsie Roll Industries, Inc. | | |
| | |
Turning Point Brands, Inc. | | |
Tyson Foods, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Health Care Equipment & Services 4.9% |
23andMe Holding Co., Class A * | | |
| | |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
| | |
| | |
AirSculpt Technologies, Inc. *(a) | | |
| | |
Alignment Healthcare, Inc. * | | |
Alphatec Holdings, Inc. * | | |
| | |
American Well Corp., Class A * | | |
AMN Healthcare Services, Inc. * | | |
12
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
Aveanna Healthcare Holdings, Inc. * | | |
| | |
| | |
Baxter International, Inc. | | |
| | |
Bioventus, Inc., Class A * | | |
Boston Scientific Corp. * | | |
BrightSpring Health Services, Inc. * | | |
Brookdale Senior Living, Inc. * | | |
Butterfly Network, Inc. *(a) | | |
| | |
Castle Biosciences, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Clover Health Investments Corp. * | | |
Community Health Systems, Inc. * | | |
| | |
| | |
| | |
Cross Country Healthcare, Inc. * | | |
| | |
| | |
Definitive Healthcare Corp. * | | |
| | |
| | |
| | |
Doximity, Inc., Class A * | | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Evolent Health, Inc., Class A * | | |
| | |
GE HealthCare Technologies, Inc. | | |
| | |
Globus Medical, Inc., Class A * | | |
GoodRx Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hims & Hers Health, Inc. * | | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
| | |
| | |
Inspire Medical Systems, Inc. * | | |
| | |
| | |
Integra LifeSciences Holdings Corp. * | | |
Intuitive Surgical, Inc. * | | |
| | |
iRhythm Technologies, Inc. * | | |
| | |
Lantheus Holdings, Inc. * | | |
| | |
LifeStance Health Group, Inc. * | | |
| | |
| | |
| | |
| | |
Merit Medical Systems, Inc. * | | |
| | |
Molina Healthcare, Inc. * | | |
| | |
National HealthCare Corp. | | |
| | |
| | |
| | |
| | |
| | |
OmniAb, Inc., Class A *(d) | | |
OmniAb, Inc., Class B *(d) | | |
| | |
| | |
Option Care Health, Inc. * | | |
OraSure Technologies, Inc. * | | |
Orchestra BioMed Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pediatrix Medical Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Privia Health Group, Inc. * | | |
PROCEPT BioRobotics Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Select Medical Holdings Corp. | | |
Semler Scientific, Inc. * | | |
Senseonics Holdings, Inc. * | | |
| | |
| | |
| | |
Silk Road Medical, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tandem Diabetes Care, Inc. * | | |
| | |
| | |
| | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
13
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
TransMedics Group, Inc. * | | |
Treace Medical Concepts, Inc. * | | |
| | |
U.S. Physical Therapy, Inc. | | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
| | |
Veeva Systems, Inc., Class A * | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
| | |
|
Household & Personal Products 1.3% |
| | |
| | |
Central Garden & Pet Co. * | | |
Central Garden & Pet Co., Class A * | | |
Church & Dwight Co., Inc. | | |
| | |
| | |
| | |
Edgewell Personal Care Co. | | |
| | |
| | |
Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Nu Skin Enterprises, Inc., Class A | | |
| | |
| | |
Reynolds Consumer Products, Inc. | | |
Spectrum Brands Holdings, Inc. | | |
USANA Health Sciences, Inc. * | | |
| | |
| | |
|
|
| | |
| | |
Ambac Financial Group, Inc. * | | |
American Financial Group, Inc. | | |
American International Group, Inc. | | |
| | |
| | |
Arch Capital Group Ltd. * | | |
| | |
| | |
| | |
Axis Capital Holdings Ltd. | | |
Baldwin Insurance Group, Inc., Class A * | | |
Brighthouse Financial, Inc. * | | |
| | |
| | |
Cincinnati Financial Corp. | | |
| | |
CNO Financial Group, Inc. | | |
| | |
| | |
Erie Indemnity Co., Class A | | |
| | |
| | |
F&G Annuities & Life, Inc. | | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
Genworth Financial, Inc., Class A * | | |
| | |
Goosehead Insurance, Inc., Class A * | | |
| | |
Hanover Insurance Group, Inc. | | |
Hartford Financial Services Group, Inc. | | |
| | |
Horace Mann Educators Corp. | | |
James River Group Holdings Ltd. | | |
| | |
Kinsale Capital Group, Inc. | | |
| | |
| | |
| | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
| | |
| | |
Old Republic International Corp. | | |
Oscar Health, Inc., Class A * | | |
| | |
| | |
Principal Financial Group, Inc. | | |
| | |
| | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
RenaissanceRe Holdings Ltd. | | |
| | |
Ryan Specialty Holdings, Inc. | | |
Safety Insurance Group, Inc. | | |
Selective Insurance Group, Inc. | | |
| | |
| | |
Skyward Specialty Insurance Group, Inc. * | | |
Stewart Information Services Corp. | | |
| | |
| | |
| | |
| | |
| | |
White Mountains Insurance Group Ltd. | | |
| | |
| | |
|
|
| | |
Air Products & Chemicals, Inc. | | |
| | |
| | |
Alpha Metallurgical Resources, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Axalta Coating Systems Ltd. * | | |
14
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
Carpenter Technology Corp. | | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Compass Minerals International, Inc. | | |
| | |
| | |
| | |
Danimer Scientific, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ginkgo Bioworks Holdings, Inc. *(a) | | |
Graphic Packaging Holding Co. | | |
| | |
| | |
Haynes International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
LyondellBasell Industries NV, Class A | | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
Mercer International, Inc. | | |
| | |
Minerals Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Packaging Corp. of America | | |
| | |
| | |
| | |
| | |
PureCycle Technologies, Inc. *(a) | | |
| | |
Radius Recycling, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sensient Technologies Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Summit Materials, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
U.S. Lime & Minerals, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 7.3% |
Advantage Solutions, Inc. * | | |
| | |
| | |
Altice USA, Inc., Class A * | | |
AMC Networks, Inc., Class A * | | |
| | |
Atlanta Braves Holdings, Inc., Class C * | | |
| | |
| | |
| | |
| | |
| | |
Charter Communications, Inc., Class A * | | |
Cinemark Holdings, Inc. * | | |
Clear Channel Outdoor Holdings, Inc. * | | |
| | |
EchoStar Corp., Class A * | | |
| | |
Endeavor Group Holdings, Inc., Class A (a) | | |
Eventbrite, Inc., Class A * | | |
EW Scripps Co., Class A * | | |
| | |
| | |
| | |
Getty Images Holdings, Inc. *(a) | | |
| | |
| | |
| | |
| | |
iHeartMedia, Inc., Class A * | | |
Integral Ad Science Holding Corp. * | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
15
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Interpublic Group of Cos., Inc. | | |
John Wiley & Sons, Inc., Class A | | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp.-Liberty Formula One, Class C * | | |
Liberty Media Corp.-Liberty Live, Class C * | | |
Liberty Media Corp.-Liberty SiriusXM, Class C * | | |
Lions Gate Entertainment Corp., Class A * | | |
Live Nation Entertainment, Inc. * | | |
Madison Square Garden Entertainment Corp. * | | |
Madison Square Garden Sports Corp. * | | |
| | |
| | |
MediaAlpha, Inc., Class A * | | |
Meta Platforms, Inc., Class A | | |
| | |
New York Times Co., Class A | | |
| | |
Nexstar Media Group, Inc. | | |
Nextdoor Holdings, Inc. * | | |
| | |
Paramount Global, Class B | | |
Pinterest, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sirius XM Holdings, Inc. (a) | | |
| | |
| | |
Sphere Entertainment Co. * | | |
| | |
Take-Two Interactive Software, Inc. * | | |
| | |
| | |
| | |
| | |
Trade Desk, Inc., Class A * | | |
| | |
Trump Media & Technology Group Corp. *(a) | | |
| | |
Vivid Seats, Inc., Class A * | | |
| | |
Warner Bros Discovery, Inc. * | | |
Warner Music Group Corp., Class A | | |
| | |
| | |
| | |
ZipRecruiter, Inc., Class A * | | |
ZoomInfo Technologies, Inc. * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 7.2% |
10X Genomics, Inc., Class A * | | |
| | |
| | |
4D Molecular Therapeutics, Inc. * | | |
| | |
| | |
| | |
ACADIA Pharmaceuticals, Inc. * | | |
Acrivon Therapeutics, Inc. *(a) | | |
Adaptive Biotechnologies Corp. * | | |
| | |
| | |
Agilent Technologies, Inc. | | |
Agios Pharmaceuticals, Inc. * | | |
Akero Therapeutics, Inc. * | | |
Akoya Biosciences, Inc. *(a) | | |
| | |
| | |
Allogene Therapeutics, Inc. * | | |
Alnylam Pharmaceuticals, Inc. * | | |
Alto Neuroscience, Inc. *(a) | | |
ALX Oncology Holdings, Inc. * | | |
| | |
Amicus Therapeutics, Inc. * | | |
Amneal Pharmaceuticals, Inc. * | | |
Amphastar Pharmaceuticals, Inc. * | | |
| | |
Anavex Life Sciences Corp. *(a) | | |
ANI Pharmaceuticals, Inc. * | | |
Anika Therapeutics, Inc. * | | |
Apellis Pharmaceuticals, Inc. * | | |
Apogee Therapeutics, Inc. * | | |
| | |
Arcturus Therapeutics Holdings, Inc. * | | |
Arcus Biosciences, Inc. * | | |
Arcutis Biotherapeutics, Inc. * | | |
| | |
ArriVent Biopharma, Inc. * | | |
Arrowhead Pharmaceuticals, Inc. * | | |
ARS Pharmaceuticals, Inc. * | | |
| | |
Atea Pharmaceuticals, Inc. * | | |
| | |
| | |
Avidity Biosciences, Inc. * | | |
Axsome Therapeutics, Inc. * | | |
| | |
Beam Therapeutics, Inc. * | | |
BioCryst Pharmaceuticals, Inc. * | | |
| | |
| | |
BioLife Solutions, Inc. * | | |
BioMarin Pharmaceutical, Inc. * | | |
| | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
Bioxcel Therapeutics, Inc. * | | |
Blueprint Medicines Corp. * | | |
| | |
| | |
| | |
| | |
| | |
Cargo Therapeutics, Inc. * | | |
Cassava Sciences, Inc. *(a) | | |
| | |
Catalyst Pharmaceuticals, Inc. * | | |
Celldex Therapeutics, Inc. * | | |
Century Therapeutics, Inc. * | | |
| | |
16
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Charles River Laboratories International, Inc. * | | |
Cogent Biosciences, Inc. * | | |
Coherus Biosciences, Inc. * | | |
Collegium Pharmaceutical, Inc. * | | |
Corcept Therapeutics, Inc. * | | |
Crinetics Pharmaceuticals, Inc. * | | |
| | |
| | |
Cullinan Therapeutics, Inc. * | | |
Cytek Biosciences, Inc. * | | |
| | |
| | |
Day One Biopharmaceuticals, Inc. * | | |
Denali Therapeutics, Inc. * | | |
| | |
Dynavax Technologies Corp. * | | |
Dyne Therapeutics, Inc. * | | |
Edgewise Therapeutics, Inc. * | | |
| | |
Elanco Animal Health, Inc. * | | |
| | |
Emergent BioSolutions, Inc. *(b) | | |
Enanta Pharmaceuticals, Inc. * | | |
Enliven Therapeutics, Inc. * | | |
Entrada Therapeutics, Inc. * | | |
| | |
| | |
| | |
Fate Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Halozyme Therapeutics, Inc. * | | |
Harmony Biosciences Holdings, Inc. * | | |
Heron Therapeutics, Inc. * | | |
| | |
| | |
Ideaya Biosciences, Inc. * | | |
IGM Biosciences, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Intellia Therapeutics, Inc. * | | |
Intra-Cellular Therapies, Inc. * | | |
| | |
Ionis Pharmaceuticals, Inc. * | | |
Iovance Biotherapeutics, Inc. * | | |
| | |
Ironwood Pharmaceuticals, Inc. * | | |
iTeos Therapeutics, Inc. * | | |
Jazz Pharmaceuticals PLC * | | |
| | |
Keros Therapeutics, Inc. * | | |
| | |
| | |
| | |
Kymera Therapeutics, Inc. * | | |
Kyverna Therapeutics, Inc. *(a) | | |
Lexicon Pharmaceuticals, Inc. * | | |
Ligand Pharmaceuticals, Inc. * | | |
Lyell Immunopharma, Inc. * | | |
| | |
| | |
Madrigal Pharmaceuticals, Inc. * | | |
| | |
Maravai LifeSciences Holdings, Inc., Class A * | | |
| | |
| | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
Mind Medicine MindMed, Inc. * | | |
Mineralys Therapeutics, Inc. * | | |
Mirum Pharmaceuticals, Inc. * | | |
| | |
Monte Rosa Therapeutics, Inc. * | | |
| | |
| | |
| | |
Neumora Therapeutics, Inc. * | | |
Neurocrine Biosciences, Inc. * | | |
| | |
Nurix Therapeutics, Inc. * | | |
Nuvalent, Inc., Class A * | | |
| | |
| | |
| | |
Organogenesis Holdings, Inc. * | | |
| | |
Pacific Biosciences of California, Inc. * | | |
Pacira BioSciences, Inc. * | | |
| | |
| | |
Phathom Pharmaceuticals, Inc. *(a) | | |
Phibro Animal Health Corp., Class A | | |
Pliant Therapeutics, Inc. * | | |
Poseida Therapeutics, Inc. * | | |
| | |
Prelude Therapeutics, Inc. * | | |
Prestige Consumer Healthcare, Inc. * | | |
Prime Medicine, Inc. *(a) | | |
Protagonist Therapeutics, Inc. * | | |
| | |
| | |
| | |
Recursion Pharmaceuticals, Inc., Class A *(a) | | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
Relay Therapeutics, Inc. * | | |
| | |
| | |
Revance Therapeutics, Inc. * | | |
REVOLUTION Medicines, Inc. * | | |
| | |
Rhythm Pharmaceuticals, Inc. * | | |
Rocket Pharmaceuticals, Inc. * | | |
| | |
Royalty Pharma PLC, Class A | | |
Sage Therapeutics, Inc. * | | |
Sana Biotechnology, Inc. * | | |
Sangamo Therapeutics, Inc. * | | |
Sarepta Therapeutics, Inc. * | | |
Scholar Rock Holding Corp. * | | |
| | |
Seres Therapeutics, Inc. *(a) | | |
| | |
| | |
SpringWorks Therapeutics, Inc. * | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
17
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Stoke Therapeutics, Inc. * | | |
Summit Therapeutics, Inc. * | | |
Supernus Pharmaceuticals, Inc. * | | |
Syndax Pharmaceuticals, Inc. * | | |
Tango Therapeutics, Inc. * | | |
Tarsus Pharmaceuticals, Inc. * | | |
| | |
Theravance Biopharma, Inc. * | | |
Thermo Fisher Scientific, Inc. | | |
Third Harmonic Bio, Inc. * | | |
Travere Therapeutics, Inc. * | | |
| | |
| | |
Ultragenyx Pharmaceutical, Inc. * | | |
| | |
United Therapeutics Corp. * | | |
Vanda Pharmaceuticals, Inc. * | | |
| | |
Ventyx Biosciences, Inc. * | | |
Vera Therapeutics, Inc. * | | |
| | |
| | |
Vertex Pharmaceuticals, Inc. * | | |
Verve Therapeutics, Inc. * | | |
| | |
Viking Therapeutics, Inc. * | | |
Vir Biotechnology, Inc. * | | |
Viridian Therapeutics, Inc. * | | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
Y-mAbs Therapeutics, Inc. * | | |
Zentalis Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
|
Real Estate Management & Development 0.2% |
Anywhere Real Estate, Inc. * | | |
CBRE Group, Inc., Class A * | | |
| | |
| | |
Cushman & Wakefield PLC * | | |
DigitalBridge Group, Inc. | | |
| | |
| | |
| | |
Howard Hughes Holdings, Inc. * | | |
Jones Lang LaSalle, Inc. * | | |
Kennedy-Wilson Holdings, Inc. | | |
| | |
Newmark Group, Inc., Class A | | |
Offerpad Solutions, Inc. *(a) | | |
Opendoor Technologies, Inc. * | | |
RE/MAX Holdings, Inc., Class A * | | |
| | |
| | |
Seaport Entertainment Group, Inc. * | | |
Seritage Growth Properties, Class A * | | |
| | |
| | |
| | |
Zillow Group, Inc., Class C * | | |
| | |
|
| | |
Semiconductors & Semiconductor Equipment 10.0% |
ACM Research, Inc., Class A * | | |
Advanced Micro Devices, Inc. * | | |
| | |
Allegro MicroSystems, Inc. * | | |
Alpha & Omega Semiconductor Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Credo Technology Group Holding Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
indie Semiconductor, Inc., Class A * | | |
| | |
| | |
Kulicke & Soffa Industries, Inc. | | |
| | |
Lattice Semiconductor Corp. * | | |
MACOM Technology Solutions Holdings, Inc. * | | |
| | |
| | |
Microchip Technology, Inc. | | |
| | |
| | |
Monolithic Power Systems, Inc. | | |
Navitas Semiconductor Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rigetti Computing, Inc. *(a) | | |
| | |
Silicon Laboratories, Inc. * | | |
| | |
SkyWater Technology, Inc. * | | |
| | |
SMART Global Holdings, Inc. * | | |
SolarEdge Technologies, Inc. * | | |
| | |
| | |
| | |
Ultra Clean Holdings, Inc. * | | |
| | |
Veeco Instruments, Inc. * | | |
| | |
| | |
|
18
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Software & Services 11.2% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Akamai Technologies, Inc. * | | |
Alarm.com Holdings, Inc. * | | |
Alkami Technology, Inc. * | | |
Altair Engineering, Inc., Class A * | | |
Amplitude, Inc., Class A * | | |
| | |
Appfolio, Inc., Class A * | | |
| | |
Applied Digital Corp. *(a) | | |
AppLovin Corp., Class A * | | |
| | |
| | |
| | |
Atlassian Corp., Class A * | | |
Aurora Innovation, Inc. * | | |
| | |
| | |
Bentley Systems, Inc., Class B | | |
BigCommerce Holdings, Inc. * | | |
| | |
| | |
| | |
Blend Labs, Inc., Class A * | | |
| | |
| | |
| | |
Cadence Design Systems, Inc. * | | |
CCC Intelligent Solutions Holdings, Inc. * | | |
| | |
| | |
Clear Secure, Inc., Class A | | |
Clearwater Analytics Holdings, Inc., Class A * | | |
Cloudflare, Inc., Class A * | | |
Cognizant Technology Solutions Corp., Class A | | |
CommVault Systems, Inc. * | | |
Confluent, Inc., Class A * | | |
Consensus Cloud Solutions, Inc. * | | |
| | |
| | |
Crowdstrike Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
DigitalOcean Holdings, Inc. * | | |
| | |
Dolby Laboratories, Inc., Class A | | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
E2open Parent Holdings, Inc. * | | |
| | |
Enfusion, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Expensify, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Freshworks, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Grid Dynamics Holdings, Inc. * | | |
Guidewire Software, Inc. * | | |
| | |
HashiCorp, Inc., Class A * | | |
| | |
| | |
iLearningEngines Holdings, Inc. *(a) | | |
Informatica, Inc., Class A * | | |
Instructure Holdings, Inc. * | | |
| | |
| | |
International Business Machines Corp. | | |
| | |
| | |
| | |
| | |
| | |
LiveRamp Holdings, Inc. * | | |
Manhattan Associates, Inc. * | | |
Marathon Digital Holdings, Inc. * | | |
| | |
| | |
| | |
MicroStrategy, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
Palo Alto Networks, Inc. * | | |
| | |
| | |
PowerSchool Holdings, Inc., Class A * | | |
Procore Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Rackspace Technology, Inc. * | | |
| | |
RingCentral, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
SEMrush Holdings, Inc., Class A * | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
19
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
SentinelOne, Inc., Class A * | | |
| | |
Smartsheet, Inc., Class A * | | |
Snowflake, Inc., Class A * | | |
| | |
SoundHound AI, Inc., Class A *(a) | | |
Sprinklr, Inc., Class A * | | |
Sprout Social, Inc., Class A * | | |
| | |
Squarespace, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Thoughtworks Holding, Inc. * | | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Weave Communications, Inc. * | | |
| | |
| | |
| | |
| | |
Zeta Global Holdings Corp., Class A * | | |
Zoom Video Communications, Inc., Class A * | | |
| | |
| | |
| | |
|
Technology Hardware & Equipment 8.0% |
| | |
| | |
Advanced Energy Industries, Inc. | | |
Aeva Technologies, Inc. * | | |
| | |
| | |
| | |
Arlo Technologies, Inc. * | | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
Benchmark Electronics, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
CommScope Holding Co., Inc. * | | |
| | |
| | |
| | |
| | |
Dell Technologies, Inc., Class C | | |
| | |
Digi International, Inc. * | | |
| | |
| | |
Evolv Technologies Holdings, Inc. * | | |
| | |
| | |
| | |
FARO Technologies, Inc. * | | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
| | |
Insight Enterprises, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
Kimball Electronics, Inc. * | | |
| | |
Lightwave Logic, Inc. *(a) | | |
| | |
Lumentum Holdings, Inc. * | | |
Methode Electronics, Inc. | | |
| | |
Mirion Technologies, Inc. * | | |
| | |
Napco Security Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pure Storage, Inc., Class A * | | |
Ribbon Communications, Inc. * | | |
| | |
| | |
| | |
Seagate Technology Holdings PLC | | |
| | |
Super Micro Computer, Inc. * | | |
| | |
| | |
Teledyne Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Vishay Intertechnology, Inc. | | |
| | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 0.8% |
| | |
| | |
| | |
Bandwidth, Inc., Class A * | | |
Cogent Communications Holdings, Inc. | | |
20
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Consolidated Communications Holdings, Inc. * | | |
Frontier Communications Parent, Inc. * | | |
| | |
| | |
| | |
| | |
Iridium Communications, Inc. | | |
Liberty Global Ltd., Class C * | | |
Liberty Latin America Ltd., Class C * | | |
Lumen Technologies, Inc. * | | |
Shenandoah Telecommunications Co. | | |
Telephone & Data Systems, Inc. | | |
| | |
| | |
Verizon Communications, Inc. | | |
| | |
|
|
Air Transport Services Group, Inc. * | | |
| | |
| | |
American Airlines Group, Inc. * | | |
| | |
| | |
CH Robinson Worldwide, Inc. | | |
| | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
| | |
Frontier Group Holdings, Inc. * | | |
| | |
Hawaiian Holdings, Inc. * | | |
| | |
Hertz Global Holdings, Inc. * | | |
| | |
JB Hunt Transport Services, Inc. | | |
| | |
| | |
| | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Old Dominion Freight Line, Inc. | | |
Proficient Auto Logistics, Inc. * | | |
| | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
| | |
Spirit Airlines, Inc. (a) | | |
Sun Country Airlines Holdings, Inc. * | | |
Uber Technologies, Inc. * | | |
U-Haul Holding Co., Non Voting Shares | | |
| | |
United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
| | |
Universal Logistics Holdings, Inc. | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
American Electric Power Co., Inc. | | |
American States Water Co. | | |
American Water Works Co., Inc. | | |
| | |
| | |
| | |
| | |
California Water Service Group | | |
| | |
Chesapeake Utilities Corp. | | |
Clearway Energy, Inc., Class C | | |
| | |
Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
| | |
Essential Utilities, Inc. | | |
| | |
| | |
| | |
| | |
Hawaiian Electric Industries, Inc. * | | |
| | |
| | |
| | |
Montauk Renewables, Inc. * | | |
| | |
New Jersey Resources Corp. | | |
| | |
| | |
Northwest Natural Holding Co. | | |
Northwestern Energy Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
Portland General Electric Co. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
Southwest Gas Holdings, Inc. | | |
| | |
Sunnova Energy International, Inc. * | | |
| | |
| | |
| | |
| | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
21
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $16,153,158,109) | |
| | |
SHORT-TERM INVESTMENTS 0.2% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (e) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (e)(f) | | |
| | |
Total Short-Term Investments
(Cost $42,919,537) | |
Total Investments in Securities
(Cost $16,196,077,646) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 09/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $24,884,147. |
| Issuer is an affiliated company, as the investment adviser owns at least 5% of the voting securities of such company. |
| Issuer is affiliated with the fund’s investment adviser. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Real Estate Investment Trust |
Below is a summary of the fund’s transactions with affiliated issuers and companies which are or were affiliates during the period ended August 31, 2024. An affiliated company is a company in which the investment adviser has or had an ownership of at least 5% of the voting securities of a security issue during the report period. A dash in the Value at August 31, 2023, and/or Value at August 31, 2024, columns means either the issuer was not held or not held as an affiliate at the beginning of period and is no longer held at period end or the issuer is held at period end but is no longer an affiliate.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 8/31/24 | |
COMMON STOCKS 0.2% OF NET ASSETS |
|
Consumer Durables & Apparel 0.0% |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
Equity Real Estate Investment Trusts (REITs) 0.0% |
Diversified Healthcare Trust | | | | | | | | |
|
|
| | | | | | | | |
|
Pharmaceuticals, Biotechnology & Life Sciences 0.0% |
Emergent BioSolutions, Inc. | | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
22
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Health Care Equipment & Services | | | | |
Pharmaceuticals, Biotechnology & Life Sciences | | | | |
Telecommunication Services | | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at August 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
23
Schwab U.S. Broad Market ETF
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $39,463,189) including securities on loan of $23,160 | | |
Investments in securities, at value - unaffiliated issuers (cost $16,156,614,457) including securities on loan of $24,860,987 | | |
| | |
Deposit with broker for futures contracts | | |
| | |
| | |
Variation margin on future contracts | | |
Income from securities on loan | | |
| | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
| Net Asset Value and Shares Outstanding have been retroactively adjusted to reflect a 3-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
24
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Broad Market ETF
Statement of Operations
For the period September 1, 2023 through August 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $128,754) | | |
Dividends received from securities - affiliated issuers | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on sales of in-kind redemptions - affiliated issuers | | |
Net realized gains on sales of in-kind redemptions - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
25
Schwab U.S. Broad Market ETF
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES1 |
| | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS1 |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| For the period ended August 31, 2024, and the prior report period, transactions in fund shares have been retroactively adjusted to reflect a 3-for-1 share split effective after the close of U.S. markets on October 10, 2024. The retroactive adjustment of the share split does not change the transaction in fund shares values (see financial note 11 for additional information). |
26
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)2 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| Per-Share Data has been retroactively adjusted to reflect a 2-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
| Calculated based on the average shares outstanding during the period. |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
27
Portfolio Holdings as of August 31, 2024
| | |
COMMON STOCKS 99.8% OF NET ASSETS |
|
Automobiles & Components 1.5% |
| | |
| | |
| | |
| | |
Fox Factory Holding Corp. * | | |
| | |
| | |
| | |
| | |
| | |
Rivian Automotive, Inc., Class A * | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Citizens Financial Group, Inc. | | |
Columbia Banking System, Inc. | | |
| | |
Commerce Bancshares, Inc. | | |
Cullen/Frost Bankers, Inc. | | |
| | |
| | |
First Citizens BancShares, Inc., Class A | | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
| | |
New York Community Bancorp, Inc. | | |
| | |
Pinnacle Financial Partners, Inc. | | |
PNC Financial Services Group, Inc. | | |
| | |
Prosperity Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Advanced Drainage Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Allison Transmission Holdings, Inc. | | |
| | |
| | |
Applied Industrial Technologies, Inc. | | |
| | |
| | |
| | |
Beacon Roofing Supply, Inc. * | | |
| | |
| | |
Builders FirstSource, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Comfort Systems USA, Inc. | | |
Core & Main, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ferguson Enterprises, Inc. | | |
| | |
| | |
| | |
Fortune Brands Innovations, Inc. | | |
Franklin Electric Co., Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Honeywell International, Inc. | | |
| | |
| | |
Huntington Ingalls Industries, Inc. | | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
Johnson Controls International PLC | | |
L3Harris Technologies, Inc. | | |
Lennox International, Inc. | | |
| | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
| | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
28
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rockwell Automation, Inc. | | |
| | |
Sensata Technologies Holding PLC | | |
Simpson Manufacturing Co., Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
| | |
Stanley Black & Decker, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Watts Water Technologies, Inc., Class A | | |
WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
WillScot Holdings Corp. * | | |
| | |
| | |
| | |
Zurn Elkay Water Solutions Corp. | | |
| | |
|
Commercial & Professional Services 1.5% |
Automatic Data Processing, Inc. | | |
Booz Allen Hamilton Holding Corp., Class A | | |
Broadridge Financial Solutions, Inc. | | |
CACI International, Inc., Class A * | | |
Casella Waste Systems, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
ExlService Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Paylocity Holding Corp. * | | |
| | |
| | |
| | |
| | |
| | |
Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 5.3% |
| | |
Asbury Automotive Group, Inc. * | | |
| | |
| | |
| | |
| | |
Burlington Stores, Inc. * | | |
| | |
| | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
GameStop Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 1.0% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lululemon Athletica, Inc. * | | |
| | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
29
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Skechers USA, Inc., Class A * | | |
| | |
Taylor Morrison Home Corp. * | | |
Tempur Sealy International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Caesars Entertainment, Inc. * | | |
| | |
Chipotle Mexican Grill, Inc. * | | |
Choice Hotels International, Inc. (a) | | |
| | |
| | |
| | |
DoorDash, Inc., Class A * | | |
DraftKings, Inc., Class A * | | |
| | |
| | |
| | |
Hilton Grand Vacations, Inc. * | | |
Hilton Worldwide Holdings, Inc. | | |
Hyatt Hotels Corp., Class A | | |
| | |
| | |
Marriott International, Inc., Class A | | |
| | |
MGM Resorts International * | | |
Norwegian Cruise Line Holdings Ltd. * | | |
Planet Fitness, Inc., Class A * | | |
Royal Caribbean Cruises Ltd. * | | |
Service Corp. International | | |
| | |
| | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.9% |
Albertsons Cos., Inc., Class A | | |
BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
| | |
| | |
| | |
| | |
Performance Food Group Co. * | | |
| | |
| | |
| | |
U.S. Foods Holding Corp. * | | |
Walgreens Boots Alliance, Inc. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Magnolia Oil & Gas Corp., Class A | | |
| | |
| | |
| | |
| | |
New Fortress Energy, Inc. | | |
| | |
| | |
Occidental Petroleum Corp. | | |
| | |
| | |
Patterson-UTI Energy, Inc. | | |
PBF Energy, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Southwestern Energy Co. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Weatherford International PLC | | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 2.4% |
| | |
Alexandria Real Estate Equities, Inc. | | |
American Homes 4 Rent, Class A | | |
| | |
Americold Realty Trust, Inc. | | |
AvalonBay Communities, Inc. | | |
30
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Brixmor Property Group, Inc. | | |
| | |
| | |
| | |
| | |
Digital Realty Trust, Inc. | | |
EastGroup Properties, Inc. | | |
| | |
Equity LifeStyle Properties, Inc. | | |
| | |
Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Federal Realty Investment Trust | | |
First Industrial Realty Trust, Inc. | | |
Gaming & Leisure Properties, Inc. | | |
Healthcare Realty Trust, Inc. | | |
Healthpeak Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Lamar Advertising Co., Class A | | |
Medical Properties Trust, Inc. (a) | | |
Mid-America Apartment Communities, Inc. | | |
NET Lease Office Properties | | |
| | |
Omega Healthcare Investors, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Rexford Industrial Realty, Inc. | | |
Ryman Hospitality Properties, Inc. | | |
| | |
Simon Property Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Affiliated Managers Group, Inc. | | |
Affirm Holdings, Inc., Class A * | | |
| | |
| | |
| | |
Ameriprise Financial, Inc. | | |
Annaly Capital Management, Inc. | | |
Apollo Global Management, Inc. | | |
ARES Management Corp., Class A | | |
Bank of New York Mellon Corp. | | |
Berkshire Hathaway, Inc., Class B * | | |
| | |
| | |
| | |
| | |
| | |
Capital One Financial Corp. | | |
| | |
Cboe Global Markets, Inc. | | |
| | |
| | |
Coinbase Global, Inc., Class A * | | |
Corebridge Financial, Inc. | | |
| | |
Credit Acceptance Corp. * | | |
Discover Financial Services | | |
| | |
| | |
| | |
| | |
FactSet Research Systems, Inc. | | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
| | |
Goldman Sachs Group, Inc. | | |
| | |
Interactive Brokers Group, Inc., Class A | | |
Intercontinental Exchange, Inc. | | |
| | |
Jack Henry & Associates, Inc. | | |
Janus Henderson Group PLC | | |
Jefferies Financial Group, Inc. | | |
| | |
LPL Financial Holdings, Inc. | | |
MarketAxess Holdings, Inc. | | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
| | |
Robinhood Markets, Inc., Class A * | | |
| | |
| | |
SoFi Technologies, Inc. * | | |
Starwood Property Trust, Inc. | | |
| | |
| | |
| | |
T. Rowe Price Group, Inc. | | |
| | |
Tradeweb Markets, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 2.6% |
| | |
Archer-Daniels-Midland Co. | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
31
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
Coca-Cola Consolidated, Inc. | | |
| | |
Constellation Brands, Inc., Class A | | |
Darling Ingredients, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
| | |
McCormick & Co., Inc. - Non Voting Shares | | |
Molson Coors Beverage Co., Class B | | |
Mondelez International, Inc., Class A | | |
| | |
| | |
| | |
Philip Morris International, Inc. | | |
| | |
| | |
Tyson Foods, Inc., Class A | | |
| | |
| | |
|
Health Care Equipment & Services 4.9% |
| | |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
Baxter International, Inc. | | |
| | |
Boston Scientific Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
| | |
| | |
GE HealthCare Technologies, Inc. | | |
Globus Medical, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
Inspire Medical Systems, Inc. * | | |
| | |
Intuitive Surgical, Inc. * | | |
| | |
| | |
Lantheus Holdings, Inc. * | | |
| | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
Option Care Health, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Veeva Systems, Inc., Class A * | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
|
Household & Personal Products 1.3% |
| | |
Church & Dwight Co., Inc. | | |
| | |
| | |
| | |
| | |
Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
| | |
| | |
Reynolds Consumer Products, Inc. | | |
| | |
|
|
| | |
| | |
American Financial Group, Inc. | | |
American International Group, Inc. | | |
| | |
Arch Capital Group Ltd. * | | |
| | |
| | |
Axis Capital Holdings Ltd. | | |
| | |
| | |
Cincinnati Financial Corp. | | |
| | |
Erie Indemnity Co., Class A | | |
| | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
| | |
Hartford Financial Services Group, Inc. | | |
Kinsale Capital Group, Inc. | | |
| | |
| | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
Old Republic International Corp. | | |
32
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
Principal Financial Group, Inc. | | |
| | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
RenaissanceRe Holdings Ltd. | | |
| | |
Ryan Specialty Holdings, Inc. | | |
Selective Insurance Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
|
Air Products & Chemicals, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Graphic Packaging Holding Co. | | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
| | |
LyondellBasell Industries NV, Class A | | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Packaging Corp. of America | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Summit Materials, Inc., Class A * | | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 7.5% |
| | |
| | |
Charter Communications, Inc., Class A * | | |
| | |
| | |
Endeavor Group Holdings, Inc., Class A (a) | | |
| | |
| | |
Interpublic Group of Cos., Inc. | | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp.-Liberty Formula One, Class C * | | |
Liberty Media Corp.-Liberty SiriusXM, Class C * | | |
Live Nation Entertainment, Inc. * | | |
| | |
Meta Platforms, Inc., Class A | | |
| | |
New York Times Co., Class A | | |
| | |
Nexstar Media Group, Inc. | | |
| | |
Paramount Global, Class B | | |
Pinterest, Inc., Class A * | | |
| | |
| | |
Sirius XM Holdings, Inc. (a) | | |
| | |
Take-Two Interactive Software, Inc. * | | |
| | |
Trade Desk, Inc., Class A * | | |
| | |
Warner Bros Discovery, Inc. * | | |
Warner Music Group Corp., Class A | | |
ZoomInfo Technologies, Inc. * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 7.1% |
10X Genomics, Inc., Class A * | | |
| | |
ACADIA Pharmaceuticals, Inc. * | | |
Agilent Technologies, Inc. | | |
| | |
Alnylam Pharmaceuticals, Inc. * | | |
| | |
Apellis Pharmaceuticals, Inc. * | | |
| | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
| | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
33
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Elanco Animal Health, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Halozyme Therapeutics, Inc. * | | |
| | |
| | |
Intra-Cellular Therapies, Inc. * | | |
Ionis Pharmaceuticals, Inc. * | | |
| | |
Jazz Pharmaceuticals PLC * | | |
| | |
| | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
| | |
| | |
Neurocrine Biosciences, Inc. * | | |
| | |
| | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
Royalty Pharma PLC, Class A | | |
Sarepta Therapeutics, Inc. * | | |
| | |
Thermo Fisher Scientific, Inc. | | |
United Therapeutics Corp. * | | |
| | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
| | |
|
Real Estate Management & Development 0.2% |
CBRE Group, Inc., Class A * | | |
| | |
Jones Lang LaSalle, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 10.4% |
Advanced Micro Devices, Inc. * | | |
Allegro MicroSystems, Inc. * | | |
| | |
| | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lattice Semiconductor Corp. * | | |
| | |
MACOM Technology Solutions Holdings, Inc. * | | |
| | |
Microchip Technology, Inc. | | |
| | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
SolarEdge Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
|
Software & Services 11.4% |
| | |
| | |
Akamai Technologies, Inc. * | | |
| | |
| | |
AppLovin Corp., Class A * | | |
| | |
Atlassian Corp., Class A * | | |
| | |
Bentley Systems, Inc., Class B | | |
| | |
Cadence Design Systems, Inc. * | | |
CCC Intelligent Solutions Holdings, Inc. * | | |
Cloudflare, Inc., Class A * | | |
Cognizant Technology Solutions Corp., Class A | | |
Confluent, Inc., Class A * | | |
Crowdstrike Holdings, Inc., Class A * | | |
| | |
| | |
Dolby Laboratories, Inc., Class A | | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
| | |
Informatica, Inc., Class A * | | |
International Business Machines Corp. | | |
| | |
Manhattan Associates, Inc. * | | |
| | |
| | |
| | |
| | |
34
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
Palo Alto Networks, Inc. * | | |
Procore Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Smartsheet, Inc., Class A * | | |
Snowflake, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
| | |
| | |
|
Technology Hardware & Equipment 8.2% |
Advanced Energy Industries, Inc. | | |
| | |
| | |
| | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Dell Technologies, Inc., Class C | | |
| | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
Insight Enterprises, Inc. * | | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Pure Storage, Inc., Class A * | | |
Seagate Technology Holdings PLC | | |
Super Micro Computer, Inc. * | | |
| | |
| | |
Teledyne Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 0.8% |
| | |
| | |
Iridium Communications, Inc. | | |
Liberty Global Ltd., Class C * | | |
| | |
Verizon Communications, Inc. | | |
| | |
|
|
| | |
American Airlines Group, Inc. * | | |
| | |
CH Robinson Worldwide, Inc. | | |
| | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
| | |
Hertz Global Holdings, Inc. * | | |
JB Hunt Transport Services, Inc. | | |
| | |
| | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
| | |
Old Dominion Freight Line, Inc. | | |
| | |
| | |
| | |
Uber Technologies, Inc. * | | |
U-Haul Holding Co., Non Voting Shares | | |
| | |
United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
| | |
| | |
|
|
| | |
| | |
| | |
American Electric Power Co., Inc. | | |
American Water Works Co., Inc. | | |
| | |
| | |
| | |
| | |
Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
| | |
Essential Utilities, Inc. | | |
| | |
| | |
| | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
35
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
Portland General Electric Co. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
Southwest Gas Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $2,435,308,491) | |
| | |
SHORT-TERM INVESTMENTS 0.1% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (d) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (d)(e) | | |
| | |
Total Short-Term Investments
(Cost $3,335,809) | |
Total Investments in Securities
(Cost $2,438,644,300) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 09/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $1,206,177. |
| Issuer is affiliated with the fund’s investment adviser. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Real Estate Investment Trust |
Below is a summary of the fund’s transactions with affiliated issuers during the period ended August 31, 2024:
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 8/31/24 | |
COMMON STOCKS 0.2% OF NET ASSETS |
|
|
| | | | | | | | |
36
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Portfolio Holdings as of August 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Telecommunication Services | | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at August 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
37
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $6,325,230) | | |
Investments in securities, at value - unaffiliated issuers (cost $2,432,319,070) including securities on loan of $1,206,177 | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Variation margin on future contracts | | |
Income from securities on loan | | |
| | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
| Net Asset Value and Shares Outstanding have been retroactively adjusted to reflect a 2-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
38
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Statement of Operations
For the period September 1, 2023 through August 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $15,652) | | |
Dividends received from securities - affiliated issuers | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on sales of in-kind redemptions - affiliated issuers | | |
Net realized gains on sales of in-kind redemptions - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
39
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES1 |
| | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS1 |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| For the period ended August 31, 2024, and the prior report period, transactions in fund shares have been retroactively adjusted to reflect a 2-for-1 share split effective after the close of U.S. markets on October 10, 2024. The retroactive adjustment of the share split does not change the transaction in fund shares values (see financial note 11 for additional information). |
40
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap ETF
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)3 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| Per-Share Data has been retroactively adjusted to reflect a 3-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
| Per-Share Data has been retroactively adjusted to reflect a 2-for-1 share split effective after the close of U.S. markets on March 10, 2022. |
| Calculated based on the average shares outstanding during the period. |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
41
Schwab U.S. Large-Cap ETF
Portfolio Holdings as of August 31, 2024
| | |
COMMON STOCKS 99.8% OF NET ASSETS |
|
Automobiles & Components 1.5% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rivian Automotive, Inc., Class A * | | |
| | |
| | |
|
|
| | |
| | |
| | |
Citizens Financial Group, Inc. | | |
| | |
Commerce Bancshares, Inc. | | |
Cullen/Frost Bankers, Inc. | | |
| | |
| | |
First Citizens BancShares, Inc., Class A | | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
| | |
New York Community Bancorp, Inc. | | |
PNC Financial Services Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Advanced Drainage Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Builders FirstSource, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ferguson Enterprises, Inc. | | |
| | |
Fortune Brands Innovations, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Honeywell International, Inc. | | |
| | |
| | |
Huntington Ingalls Industries, Inc. | | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
Johnson Controls International PLC | | |
L3Harris Technologies, Inc. | | |
Lennox International, Inc. | | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rockwell Automation, Inc. | | |
| | |
Sensata Technologies Holding PLC | | |
| | |
Stanley Black & Decker, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
WillScot Holdings Corp. * | | |
| | |
| | |
| | |
| | |
|
Commercial & Professional Services 1.4% |
Automatic Data Processing, Inc. | | |
Booz Allen Hamilton Holding Corp., Class A | | |
Broadridge Financial Solutions, Inc. | | |
CACI International, Inc., Class A * | | |
42
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Paylocity Holding Corp. * | | |
| | |
| | |
| | |
| | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 5.4% |
| | |
| | |
| | |
| | |
Burlington Stores, Inc. * | | |
| | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
GameStop Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 0.8% |
| | |
| | |
| | |
| | |
| | |
Lululemon Athletica, Inc. * | | |
Mohawk Industries, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Tempur Sealy International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Caesars Entertainment, Inc. * | | |
| | |
Chipotle Mexican Grill, Inc. * | | |
| | |
| | |
| | |
DoorDash, Inc., Class A * | | |
DraftKings, Inc., Class A * | | |
| | |
Hilton Worldwide Holdings, Inc. | | |
| | |
Marriott International, Inc., Class A | | |
| | |
MGM Resorts International * | | |
Norwegian Cruise Line Holdings Ltd. * | | |
Royal Caribbean Cruises Ltd. * | | |
Service Corp. International | | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.9% |
Albertsons Cos., Inc., Class A | | |
BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
| | |
| | |
| | |
| | |
Performance Food Group Co. * | | |
| | |
| | |
U.S. Foods Holding Corp. * | | |
Walgreens Boots Alliance, Inc. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
43
Schwab U.S. Large-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
New Fortress Energy, Inc. (a) | | |
| | |
Occidental Petroleum Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 2.4% |
Alexandria Real Estate Equities, Inc. | | |
American Homes 4 Rent, Class A | | |
| | |
Americold Realty Trust, Inc. | | |
AvalonBay Communities, Inc. | | |
| | |
| | |
| | |
| | |
Digital Realty Trust, Inc. | | |
EastGroup Properties, Inc. | | |
| | |
Equity LifeStyle Properties, Inc. | | |
| | |
Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Federal Realty Investment Trust | | |
Gaming & Leisure Properties, Inc. | | |
Healthcare Realty Trust, Inc. | | |
Healthpeak Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
Lamar Advertising Co., Class A | | |
| | |
Mid-America Apartment Communities, Inc. | | |
| | |
Omega Healthcare Investors, Inc. | | |
| | |
| | |
| | |
| | |
Rexford Industrial Realty, Inc. | | |
| | |
Simon Property Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Ameriprise Financial, Inc. | | |
Annaly Capital Management, Inc. | | |
Apollo Global Management, Inc. | | |
ARES Management Corp., Class A | | |
Bank of New York Mellon Corp. | | |
Berkshire Hathaway, Inc., Class B * | | |
| | |
| | |
| | |
Capital One Financial Corp. | | |
| | |
Cboe Global Markets, Inc. | | |
| | |
| | |
Coinbase Global, Inc., Class A * | | |
Corebridge Financial, Inc. | | |
| | |
Credit Acceptance Corp. * | | |
Discover Financial Services | | |
| | |
FactSet Research Systems, Inc. | | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
| | |
Goldman Sachs Group, Inc. | | |
Interactive Brokers Group, Inc., Class A | | |
Intercontinental Exchange, Inc. | | |
| | |
Jack Henry & Associates, Inc. | | |
Jefferies Financial Group, Inc. | | |
| | |
LPL Financial Holdings, Inc. | | |
MarketAxess Holdings, Inc. | | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
Robinhood Markets, Inc., Class A * | | |
| | |
| | |
SoFi Technologies, Inc. * | | |
Starwood Property Trust, Inc. | | |
| | |
| | |
T. Rowe Price Group, Inc. | | |
| | |
Tradeweb Markets, Inc., Class A | | |
| | |
| | |
| | |
| | |
|
44
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Food, Beverage & Tobacco 2.6% |
| | |
Archer-Daniels-Midland Co. | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
| | |
| | |
| | |
Constellation Brands, Inc., Class A | | |
Darling Ingredients, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
McCormick & Co., Inc. - Non Voting Shares | | |
Molson Coors Beverage Co., Class B | | |
Mondelez International, Inc., Class A | | |
| | |
| | |
Philip Morris International, Inc. | | |
| | |
Tyson Foods, Inc., Class A | | |
| | |
|
Health Care Equipment & Services 4.9% |
| | |
| | |
| | |
Baxter International, Inc. | | |
| | |
Boston Scientific Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
GE HealthCare Technologies, Inc. | | |
| | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
| | |
Intuitive Surgical, Inc. * | | |
| | |
| | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Veeva Systems, Inc., Class A * | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
|
Household & Personal Products 1.3% |
Church & Dwight Co., Inc. | | |
| | |
| | |
| | |
Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
| | |
Reynolds Consumer Products, Inc. | | |
| | |
|
|
| | |
| | |
American Financial Group, Inc. | | |
American International Group, Inc. | | |
| | |
Arch Capital Group Ltd. * | | |
| | |
| | |
| | |
| | |
Cincinnati Financial Corp. | | |
| | |
Erie Indemnity Co., Class A | | |
| | |
Fidelity National Financial, Inc. | | |
| | |
Hartford Financial Services Group, Inc. | | |
Kinsale Capital Group, Inc. | | |
| | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
Old Republic International Corp. | | |
Principal Financial Group, Inc. | | |
| | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
RenaissanceRe Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
|
|
Air Products & Chemicals, Inc. | | |
| | |
| | |
| | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
45
Schwab U.S. Large-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
LyondellBasell Industries NV, Class A | | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
| | |
Packaging Corp. of America | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 7.7% |
| | |
| | |
Charter Communications, Inc., Class A * | | |
| | |
| | |
| | |
Interpublic Group of Cos., Inc. | | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp.-Liberty Formula One, Class C * | | |
Liberty Media Corp.-Liberty SiriusXM, Class C * | | |
Live Nation Entertainment, Inc. * | | |
| | |
Meta Platforms, Inc., Class A | | |
| | |
| | |
| | |
Paramount Global, Class B | | |
Pinterest, Inc., Class A * | | |
| | |
| | |
Sirius XM Holdings, Inc. (a) | | |
| | |
Take-Two Interactive Software, Inc. * | | |
| | |
Trade Desk, Inc., Class A * | | |
Trump Media & Technology Group Corp. *(a) | | |
| | |
Warner Bros Discovery, Inc. * | | |
ZoomInfo Technologies, Inc. * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 7.1% |
| | |
Agilent Technologies, Inc. | | |
Alnylam Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
| | |
Elanco Animal Health, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Jazz Pharmaceuticals PLC * | | |
| | |
| | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
Neurocrine Biosciences, Inc. * | | |
| | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
Royalty Pharma PLC, Class A | | |
Sarepta Therapeutics, Inc. * | | |
Thermo Fisher Scientific, Inc. | | |
United Therapeutics Corp. * | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
| | |
|
Real Estate Management & Development 0.2% |
CBRE Group, Inc., Class A * | | |
| | |
Jones Lang LaSalle, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
46
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Semiconductors & Semiconductor Equipment 10.6% |
Advanced Micro Devices, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lattice Semiconductor Corp. * | | |
| | |
Microchip Technology, Inc. | | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
SolarEdge Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
|
Software & Services 11.5% |
| | |
| | |
Akamai Technologies, Inc. * | | |
| | |
AppLovin Corp., Class A * | | |
| | |
Atlassian Corp., Class A * | | |
| | |
Bentley Systems, Inc., Class B | | |
| | |
Cadence Design Systems, Inc. * | | |
Cloudflare, Inc., Class A * | | |
Cognizant Technology Solutions Corp., Class A | | |
Crowdstrike Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
| | |
International Business Machines Corp. | | |
| | |
Manhattan Associates, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
Palo Alto Networks, Inc. * | | |
Procore Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Snowflake, Inc., Class A * | | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
| | |
| | |
|
Technology Hardware & Equipment 8.3% |
| | |
| | |
| | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Dell Technologies, Inc., Class C | | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
| | |
| | |
Pure Storage, Inc., Class A * | | |
Seagate Technology Holdings PLC | | |
Super Micro Computer, Inc. * | | |
| | |
| | |
Teledyne Technologies, Inc. * | | |
| | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 0.8% |
| | |
| | |
Liberty Global Ltd., Class C * | | |
| | |
Verizon Communications, Inc. | | |
| | |
|
|
| | |
American Airlines Group, Inc. * | | |
| | |
CH Robinson Worldwide, Inc. | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
47
Schwab U.S. Large-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
Hertz Global Holdings, Inc. * | | |
JB Hunt Transport Services, Inc. | | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
Old Dominion Freight Line, Inc. | | |
| | |
| | |
Uber Technologies, Inc. * | | |
U-Haul Holding Co., Non Voting Shares | | |
| | |
United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
| | |
| | |
|
|
| | |
| | |
| | |
American Electric Power Co., Inc. | | |
American Water Works Co., Inc. | | |
| | |
| | |
| | |
| | |
Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
| | |
Essential Utilities, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
| | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $25,662,043,218) | |
| | |
SHORT-TERM INVESTMENTS 0.1% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (d) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (d)(e) | | |
| | |
Total Short-Term Investments
(Cost $31,343,110) | |
Total Investments in Securities
(Cost $25,693,386,328) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 09/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $7,142,358. |
| Issuer is affiliated with the fund’s investment adviser. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Real Estate Investment Trust |
Below is a summary of the fund’s transactions with affiliated issuers during the period ended August 31, 2024:
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 8/31/24 | |
COMMON STOCKS 0.2% OF NET ASSETS |
|
|
| | | | | | | | |
48
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Telecommunication Services | | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at August 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
49
Schwab U.S. Large-Cap ETF
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $66,903,871) | | |
Investments in securities, at value - unaffiliated issuers (cost $25,626,482,457) including securities on loan of $7,142,358 | | |
Deposit with broker for futures contracts | | |
| | |
| | |
Variation margin on future contracts | | |
Income from securities on loan | | |
| | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
| Net Asset Value and Shares Outstanding have been retroactively adjusted to reflect a 3-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
50
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap ETF
Statement of Operations
For the period September 1, 2023 through August 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $173,299) | | |
Dividends received from securities - affiliated issuers | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on sales of in-kind redemptions - affiliated issuers | | |
Net realized gains on sales of in-kind redemptions - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
51
Schwab U.S. Large-Cap ETF
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES1 |
| | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS1 |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| For the period ended August 31, 2024, and the prior report period, transactions in fund shares have been retroactively adjusted to reflect a 3-for-1 share split effective after the close of U.S. markets on October 10, 2024. The retroactive adjustment of the share split does not change the transaction in fund shares values (see financial note 11 for additional information). |
52
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Growth ETF
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)3 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| Per-Share Data has been retroactively adjusted to reflect a 4-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
| Per-Share Data has been retroactively adjusted to reflect a 2-for-1 share split effective after the close of U.S. markets on March 10, 2022. |
| Calculated based on the average shares outstanding during the period. |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
53
Schwab U.S. Large-Cap Growth ETF
Portfolio Holdings as of August 31, 2024
| | |
COMMON STOCKS 99.9% OF NET ASSETS |
|
Automobiles & Components 2.2% |
Rivian Automotive, Inc., Class A * | | |
| | |
| | |
|
|
First Citizens BancShares, Inc., Class A | | |
|
|
| | |
Builders FirstSource, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Huntington Ingalls Industries, Inc. | | |
L3Harris Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
WESCO International, Inc. | | |
WillScot Holdings Corp. * | | |
| | |
| | |
|
Commercial & Professional Services 0.6% |
CACI International, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Paylocity Holding Corp. * | | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 6.7% |
| | |
| | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
| | |
O'Reilly Automotive, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 0.6% |
| | |
| | |
Lululemon Athletica, Inc. * | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Caesars Entertainment, Inc. * | | |
Chipotle Mexican Grill, Inc. * | | |
| | |
| | |
DoorDash, Inc., Class A * | | |
DraftKings, Inc., Class A * | | |
| | |
Hilton Worldwide Holdings, Inc. | | |
Marriott International, Inc., Class A | | |
| | |
|
Consumer Staples Distribution & Retail 1.6% |
Casey's General Stores, Inc. | | |
| | |
Performance Food Group Co. * | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
New Fortress Energy, Inc. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 0.4% |
| | |
Rexford Industrial Realty, Inc. | | |
| | |
| | |
|
|
| | |
| | |
Coinbase Global, Inc., Class A * | | |
| | |
Credit Acceptance Corp. * | | |
FactSet Research Systems, Inc. | | |
| | |
Interactive Brokers Group, Inc., Class A | | |
LPL Financial Holdings, Inc. | | |
MarketAxess Holdings, Inc. | | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
54
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Growth ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Robinhood Markets, Inc., Class A * | | |
| | |
| | |
Tradeweb Markets, Inc., Class A | | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 0.3% |
| | |
Constellation Brands, Inc., Class A | | |
| | |
| | |
|
Health Care Equipment & Services 5.2% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
| | |
Intuitive Surgical, Inc. * | | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Veeva Systems, Inc., Class A * | | |
| | |
|
|
| | |
Kinsale Capital Group, Inc. | | |
| | |
| | |
RenaissanceRe Holdings Ltd. | | |
| | |
|
|
| | |
| | |
| | |
| | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 12.6% |
| | |
| | |
| | |
Charter Communications, Inc., Class A * | | |
Liberty Broadband Corp., Class C * | | |
Live Nation Entertainment, Inc. * | | |
Meta Platforms, Inc., Class A | | |
| | |
Pinterest, Inc., Class A * | | |
| | |
| | |
| | |
Take-Two Interactive Software, Inc. * | | |
Trade Desk, Inc., Class A * | | |
Warner Bros Discovery, Inc. * | | |
ZoomInfo Technologies, Inc. * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 6.9% |
Alnylam Pharmaceuticals, Inc. * | | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Jazz Pharmaceuticals PLC * | | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
Neurocrine Biosciences, Inc. * | | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
Sarepta Therapeutics, Inc. * | | |
Thermo Fisher Scientific, Inc. | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
| | |
|
Real Estate Management & Development 0.1% |
| | |
|
Semiconductors & Semiconductor Equipment 15.7% |
Advanced Micro Devices, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
SolarEdge Technologies, Inc. * | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
55
Schwab U.S. Large-Cap Growth ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
|
Software & Services 19.4% |
| | |
| | |
| | |
AppLovin Corp., Class A * | | |
Atlassian Corp., Class A * | | |
| | |
| | |
Cadence Design Systems, Inc. * | | |
Cloudflare, Inc., Class A * | | |
Crowdstrike Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
Palo Alto Networks, Inc. * | | |
Procore Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Snowflake, Inc., Class A * | | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
| | |
| | |
|
Technology Hardware & Equipment 12.8% |
| | |
| | |
Dell Technologies, Inc., Class C | | |
Pure Storage, Inc., Class A * | | |
Super Micro Computer, Inc. * | | |
Teledyne Technologies, Inc. * | | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 0.4% |
| | |
|
|
JB Hunt Transport Services, Inc. | | |
Old Dominion Freight Line, Inc. | | |
| | |
| | |
|
|
Constellation Energy Corp. | | |
Total Common Stocks
(Cost $17,389,270,350) | |
| | |
SHORT-TERM INVESTMENTS 0.1% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (b) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (b)(c) | | |
| | |
Total Short-Term Investments
(Cost $13,809,877) | |
Total Investments in Securities
(Cost $17,403,080,227) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
Russell 1000 Growth Index, e-mini, expires 09/20/24 | | | |
S&P 500 Index, e-mini, expires 09/20/24 | | | |
| | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $2,952,468. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
56
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Growth ETF
Portfolio Holdings as of August 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
57
Schwab U.S. Large-Cap Growth ETF
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $17,403,080,227) including securities on loan of $2,952,468 | | |
Deposit with broker for futures contracts | | |
| | |
| | |
Variation margin on future contracts | | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
| Net Asset Value and Shares Outstanding have been retroactively adjusted to reflect a 4-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
58
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Growth ETF
Statement of Operations
For the period September 1, 2023 through August 31, 2024 |
|
Dividends received from securities - unaffiliated issuers | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on sales of in-kind redemptions - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
59
Schwab U.S. Large-Cap Growth ETF
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES1 |
| | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS1 |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| For the period ended August 31, 2024, and the prior report period, transactions in fund shares have been retroactively adjusted to reflect a 4-for-1 share split effective after the close of U.S. markets on October 10, 2024. The retroactive adjustment of the share split does not change the transaction in fund shares values (see financial note 11 for additional information). |
60
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Value ETF
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)2 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| Per-Share Data has been retroactively adjusted to reflect a 3-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
| Calculated based on the average shares outstanding during the period. |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
61
Schwab U.S. Large-Cap Value ETF
Portfolio Holdings as of August 31, 2024
| | |
COMMON STOCKS 99.8% OF NET ASSETS |
|
Automobiles & Components 0.7% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Citizens Financial Group, Inc. | | |
| | |
Commerce Bancshares, Inc. | | |
Cullen/Frost Bankers, Inc. | | |
| | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
| | |
New York Community Bancorp, Inc. | | |
PNC Financial Services Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Advanced Drainage Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ferguson Enterprises, Inc. | | |
| | |
Fortune Brands Innovations, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Honeywell International, Inc. | | |
| | |
| | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
Johnson Controls International PLC | | |
Lennox International, Inc. | | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rockwell Automation, Inc. | | |
| | |
Sensata Technologies Holding PLC | | |
| | |
Stanley Black & Decker, Inc. | | |
| | |
| | |
| | |
| | |
Westinghouse Air Brake Technologies Corp. | | |
| | |
| | |
| | |
|
Commercial & Professional Services 2.4% |
Automatic Data Processing, Inc. | | |
Booz Allen Hamilton Holding Corp., Class A | | |
Broadridge Financial Solutions, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 3.8% |
| | |
| | |
Burlington Stores, Inc. * | | |
| | |
62
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Value ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Dick's Sporting Goods, Inc. | | |
| | |
GameStop Corp., Class A * | | |
| | |
| | |
| | |
| | |
Penske Automotive Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 1.2% |
| | |
| | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
| | |
| | |
Tempur Sealy International, Inc. | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
MGM Resorts International * | | |
Norwegian Cruise Line Holdings Ltd. * | | |
Royal Caribbean Cruises Ltd. * | | |
Service Corp. International | | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 2.4% |
Albertsons Cos., Inc., Class A | | |
BJ's Wholesale Club Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
U.S. Foods Holding Corp. * | | |
Walgreens Boots Alliance, Inc. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Occidental Petroleum Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 4.7% |
Alexandria Real Estate Equities, Inc. | | |
American Homes 4 Rent, Class A | | |
| | |
Americold Realty Trust, Inc. | | |
AvalonBay Communities, Inc. | | |
| | |
| | |
| | |
| | |
Digital Realty Trust, Inc. | | |
EastGroup Properties, Inc. | | |
Equity LifeStyle Properties, Inc. | | |
| | |
Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Federal Realty Investment Trust | | |
Gaming & Leisure Properties, Inc. | | |
Healthcare Realty Trust, Inc. | | |
Healthpeak Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
Lamar Advertising Co., Class A | | |
| | |
Mid-America Apartment Communities, Inc. | | |
| | |
Omega Healthcare Investors, Inc. | | |
| | |
| | |
| | |
| | |
Simon Property Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Ameriprise Financial, Inc. | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
63
Schwab U.S. Large-Cap Value ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Annaly Capital Management, Inc. | | |
Apollo Global Management, Inc. | | |
ARES Management Corp., Class A | | |
Bank of New York Mellon Corp. | | |
Berkshire Hathaway, Inc., Class B * | | |
| | |
Capital One Financial Corp. | | |
| | |
Cboe Global Markets, Inc. | | |
| | |
| | |
Corebridge Financial, Inc. | | |
Discover Financial Services | | |
| | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
Goldman Sachs Group, Inc. | | |
Intercontinental Exchange, Inc. | | |
| | |
Jack Henry & Associates, Inc. | | |
Jefferies Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
SoFi Technologies, Inc. * | | |
Starwood Property Trust, Inc. | | |
| | |
| | |
T. Rowe Price Group, Inc. | | |
| | |
| | |
|
Food, Beverage & Tobacco 5.3% |
| | |
Archer-Daniels-Midland Co. | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
| | |
| | |
Darling Ingredients, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
McCormick & Co., Inc. - Non Voting Shares | | |
Molson Coors Beverage Co., Class B | | |
Mondelez International, Inc., Class A | | |
| | |
Philip Morris International, Inc. | | |
| | |
Tyson Foods, Inc., Class A | | |
| | |
|
| | |
Health Care Equipment & Services 4.5% |
| | |
Baxter International, Inc. | | |
| | |
Boston Scientific Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
GE HealthCare Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
|
Household & Personal Products 2.8% |
Church & Dwight Co., Inc. | | |
| | |
| | |
| | |
Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
| | |
Reynolds Consumer Products, Inc. | | |
| | |
|
|
| | |
| | |
American Financial Group, Inc. | | |
American International Group, Inc. | | |
| | |
Arch Capital Group Ltd. * | | |
| | |
| | |
| | |
| | |
Cincinnati Financial Corp. | | |
| | |
Erie Indemnity Co., Class A | | |
Fidelity National Financial, Inc. | | |
| | |
Hartford Financial Services Group, Inc. | | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
Old Republic International Corp. | | |
Principal Financial Group, Inc. | | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
| | |
| | |
| | |
64
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Value ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
|
|
Air Products & Chemicals, Inc. | | |
| | |
| | |
| | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
LyondellBasell Industries NV, Class A | | |
| | |
| | |
| | |
Packaging Corp. of America | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 2.0% |
| | |
| | |
| | |
Interpublic Group of Cos., Inc. | | |
Liberty Media Corp.-Liberty Formula One, Class C * | | |
Liberty Media Corp.-Liberty SiriusXM, Class C * | | |
| | |
| | |
| | |
Paramount Global, Class B | | |
Sirius XM Holdings, Inc. (a) | | |
Trump Media & Technology Group Corp. *(a) | | |
| | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 7.4% |
| | |
Agilent Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Elanco Animal Health, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Royalty Pharma PLC, Class A | | |
United Therapeutics Corp. * | | |
| | |
| | |
|
Real Estate Management & Development 0.2% |
CBRE Group, Inc., Class A * | | |
Jones Lang LaSalle, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 4.6% |
| | |
| | |
| | |
| | |
Lattice Semiconductor Corp. * | | |
Microchip Technology, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Akamai Technologies, Inc. * | | |
| | |
Bentley Systems, Inc., Class B | | |
Cognizant Technology Solutions Corp., Class A | | |
| | |
Guidewire Software, Inc. * | | |
International Business Machines Corp. | | |
Manhattan Associates, Inc. * | | |
| | |
| | |
| | |
|
Technology Hardware & Equipment 3.0% |
| | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
65
Schwab U.S. Large-Cap Value ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
Seagate Technology Holdings PLC | | |
| | |
| | |
| | |
| | |
| | |
|
Telecommunication Services 1.4% |
| | |
| | |
Liberty Global Ltd., Class C * | | |
Verizon Communications, Inc. | | |
| | |
|
|
| | |
American Airlines Group, Inc. * | | |
| | |
CH Robinson Worldwide, Inc. | | |
| | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
Hertz Global Holdings, Inc. * | | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
Uber Technologies, Inc. * | | |
U-Haul Holding Co., Non Voting Shares | | |
| | |
United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
| | |
| | |
|
|
| | |
| | |
| | |
American Electric Power Co., Inc. | | |
American Water Works Co., Inc. | | |
| | |
| | |
| | |
| | |
Consolidated Edison, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Essential Utilities, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $8,491,509,844) | |
| | |
SHORT-TERM INVESTMENTS 0.0% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (d) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (d)(e) | | |
| | |
Total Short-Term Investments
(Cost $6,237,378) | |
Total Investments in Securities
(Cost $8,497,747,222) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
Russell 1000 Value Index, e-mini, expires 09/20/24 | | | |
S&P 500 Index, e-mini, expires 09/20/24 | | | |
| | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $2,855,970. |
| Issuer is affiliated with the fund’s investment adviser. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Real Estate Investment Trust |
66
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Value ETF
Portfolio Holdings as of August 31, 2024 (continued)
Below is a summary of the fund’s transactions with affiliated issuers during the period ended August 31, 2024:
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 8/31/24 | |
COMMON STOCKS 0.4% OF NET ASSETS |
|
|
| | | | | | | | |
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Telecommunication Services | | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at August 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
67
Schwab U.S. Large-Cap Value ETF
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $38,803,395) | | |
Investments in securities, at value - unaffiliated issuers (cost $8,458,943,827) including securities on loan of $2,855,970 | | |
Deposit with broker for futures contracts | | |
| | |
| | |
Variation margin on future contracts | | |
Income from securities on loan | | |
| | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
| Net Asset Value and Shares Outstanding have been retroactively adjusted to reflect a 3-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
68
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Value ETF
Statement of Operations
For the period September 1, 2023 through August 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $100,348) | | |
Dividends received from securities - affiliated issuers | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on sales of in-kind redemptions - affiliated issuers | | |
Net realized gains on sales of in-kind redemptions - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
69
Schwab U.S. Large-Cap Value ETF
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES1 |
| | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS1 |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
| For the period ended August 31, 2024, and the prior report period, transactions in fund shares have been retroactively adjusted to reflect a 3-for-1 share split effective after the close of U.S. markets on October 10, 2024. The retroactive adjustment of the share split does not change the transaction in fund shares values (see financial note 11 for additional information). |
70
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)2 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| Per-Share Data has been retroactively adjusted to reflect a 3-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
| Calculated based on the average shares outstanding during the period. |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
71
Portfolio Holdings as of August 31, 2024
| | |
COMMON STOCKS 99.9% OF NET ASSETS |
|
Automobiles & Components 0.9% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Commerce Bancshares, Inc. | | |
Cullen/Frost Bankers, Inc. | | |
| | |
First Financial Bankshares, Inc. | | |
| | |
| | |
| | |
New York Community Bancorp, Inc. | | |
Pinnacle Financial Partners, Inc. | | |
| | |
Prosperity Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Advanced Drainage Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Applied Industrial Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Comfort Systems USA, Inc. | | |
Core & Main, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Fortune Brands Innovations, Inc. | | |
| | |
| | |
| | |
| | |
Huntington Ingalls Industries, Inc. | | |
| | |
| | |
| | |
Lennox International, Inc. | | |
| | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
MDU Resources Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sensata Technologies Holding PLC | | |
Simpson Manufacturing Co., Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
WESCO International, Inc. | | |
WillScot Holdings Corp. * | | |
| | |
Zurn Elkay Water Solutions Corp. | | |
| | |
|
Commercial & Professional Services 4.4% |
Booz Allen Hamilton Holding Corp., Class A | | |
CACI International, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Dun & Bradstreet Holdings, Inc. | | |
ExlService Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Paylocity Holding Corp. * | | |
| | |
| | |
Science Applications International Corp. | | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 3.8% |
| | |
| | |
72
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
Burlington Stores, Inc. * | | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
GameStop Corp., Class A * | | |
| | |
| | |
| | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
Penske Automotive Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 3.9% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
| | |
| | |
Skechers USA, Inc., Class A * | | |
| | |
Tempur Sealy International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Caesars Entertainment, Inc. * | | |
| | |
Choice Hotels International, Inc. (a) | | |
| | |
DraftKings, Inc., Class A * | | |
| | |
Hyatt Hotels Corp., Class A | | |
| | |
Marriott Vacations Worldwide Corp. | | |
MGM Resorts International * | | |
Norwegian Cruise Line Holdings Ltd. * | | |
Planet Fitness, Inc., Class A * | | |
Service Corp. International | | |
| | |
| | |
| | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.3% |
Albertsons Cos., Inc., Class A | | |
BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
Performance Food Group Co. * | | |
U.S. Foods Holding Corp. * | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
New Fortress Energy, Inc. (a) | | |
| | |
| | |
| | |
PBF Energy, Inc., Class A | | |
| | |
Southwestern Energy Co. * | | |
| | |
| | |
| | |
| | |
Weatherford International PLC | | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 6.5% |
| | |
American Homes 4 Rent, Class A | | |
Americold Realty Trust, Inc. | | |
Brixmor Property Group, Inc. | | |
| | |
| | |
| | |
EastGroup Properties, Inc. | | |
Equity LifeStyle Properties, Inc. | | |
Federal Realty Investment Trust | | |
First Industrial Realty Trust, Inc. | | |
Gaming & Leisure Properties, Inc. | | |
Healthcare Realty Trust, Inc. | | |
Healthpeak Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
| | |
| | |
Lamar Advertising Co., Class A | | |
Medical Properties Trust, Inc. (a) | | |
| | |
Omega Healthcare Investors, Inc. | | |
| | |
| | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
73
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Rexford Industrial Realty, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
|
Affiliated Managers Group, Inc. | | |
| | |
| | |
Annaly Capital Management, Inc. | | |
Blackstone Mortgage Trust, Inc., Class A (a) | | |
| | |
| | |
Cboe Global Markets, Inc. | | |
Corebridge Financial, Inc. | | |
Credit Acceptance Corp. * | | |
| | |
| | |
Euronet Worldwide, Inc. * | | |
FactSet Research Systems, Inc. | | |
Interactive Brokers Group, Inc., Class A | | |
| | |
Jack Henry & Associates, Inc. | | |
Janus Henderson Group PLC | | |
Jefferies Financial Group, Inc. | | |
| | |
MarketAxess Holdings, Inc. | | |
| | |
| | |
| | |
| | |
Robinhood Markets, Inc., Class A * | | |
| | |
SoFi Technologies, Inc. * | | |
Starwood Property Trust, Inc. | | |
| | |
| | |
Tradeweb Markets, Inc., Class A | | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 2.4% |
Boston Beer Co., Inc., Class A * | | |
| | |
| | |
| | |
Coca-Cola Consolidated, Inc. | | |
Darling Ingredients, Inc. * | | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
| | |
Molson Coors Beverage Co., Class B | | |
| | |
| | |
| | |
| | |
|
| | |
Health Care Equipment & Services 3.7% |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Inspire Medical Systems, Inc. * | | |
Lantheus Holdings, Inc. * | | |
| | |
Option Care Health, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
| | |
|
Household & Personal Products 0.3% |
| | |
| | |
Reynolds Consumer Products, Inc. | | |
| | |
|
|
American Financial Group, Inc. | | |
| | |
Axis Capital Holdings Ltd. | | |
| | |
Erie Indemnity Co., Class A | | |
| | |
F&G Annuities & Life, Inc. | | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
| | |
Hanover Insurance Group, Inc. | | |
Kinsale Capital Group, Inc. | | |
| | |
| | |
Old Republic International Corp. | | |
| | |
Reinsurance Group of America, Inc. | | |
RenaissanceRe Holdings Ltd. | | |
| | |
Selective Insurance Group, Inc. | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
74
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Graphic Packaging Holding Co. | | |
| | |
| | |
| | |
| | |
Packaging Corp. of America | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 2.8% |
| | |
Endeavor Group Holdings, Inc., Class A (a) | | |
| | |
Interpublic Group of Cos., Inc. | | |
Liberty Media Corp.-Liberty Formula One, Class C * | | |
Liberty Media Corp.-Liberty SiriusXM, Class C * | | |
| | |
New York Times Co., Class A | | |
| | |
Nexstar Media Group, Inc. | | |
Paramount Global, Class B | | |
Pinterest, Inc., Class A * | | |
| | |
Trump Media & Technology Group Corp. *(a) | | |
ZoomInfo Technologies, Inc. * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 5.5% |
10X Genomics, Inc., Class A * | | |
| | |
Apellis Pharmaceuticals, Inc. * | | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
| | |
Elanco Animal Health, Inc. * | | |
| | |
| | |
Halozyme Therapeutics, Inc. * | | |
Intra-Cellular Therapies, Inc. * | | |
| | |
Ionis Pharmaceuticals, Inc. * | | |
Jazz Pharmaceuticals PLC * | | |
| | |
| | |
Neurocrine Biosciences, Inc. * | | |
| | |
| | |
| | |
| | |
Sarepta Therapeutics, Inc. * | | |
| | |
United Therapeutics Corp. * | | |
| | |
| | |
|
Real Estate Management & Development 0.6% |
Jones Lang LaSalle, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 2.0% |
Allegro MicroSystems, Inc. * | | |
| | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
Lattice Semiconductor Corp. * | | |
| | |
| | |
| | |
| | |
| | |
Silicon Laboratories, Inc. * | | |
SolarEdge Technologies, Inc. * | | |
| | |
| | |
| | |
|
|
AppLovin Corp., Class A * | | |
| | |
| | |
Bentley Systems, Inc., Class B | | |
| | |
CCC Intelligent Solutions Holdings, Inc. * | | |
Confluent, Inc., Class A * | | |
| | |
Dolby Laboratories, Inc., Class A | | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
Informatica, Inc., Class A * | | |
Manhattan Associates, Inc. * | | |
| | |
| | |
Procore Technologies, Inc. * | | |
| | |
| | |
Smartsheet, Inc., Class A * | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
75
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
|
Technology Hardware & Equipment 4.4% |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
Dell Technologies, Inc., Class C | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pure Storage, Inc., Class A * | | |
| | |
| | |
| | |
| | |
|
Telecommunication Services 0.4% |
Frontier Communications Parent, Inc. * | | |
| | |
Iridium Communications, Inc. | | |
Liberty Global Ltd., Class C * | | |
| | |
|
|
| | |
American Airlines Group, Inc. * | | |
| | |
CH Robinson Worldwide, Inc. | | |
| | |
Hertz Global Holdings, Inc. * | | |
| | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
| | |
U-Haul Holding Co., Non Voting Shares | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Essential Utilities, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
Portland General Electric Co. | | |
| | |
| | |
| | |
Total Common Stocks
(Cost $8,911,159,431) | |
| | |
SHORT-TERM INVESTMENTS 0.4% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (c) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (c)(d) | | |
| | |
Total Short-Term Investments
(Cost $49,766,239) | |
Total Investments in Securities
(Cost $8,960,925,670) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
S&P 400 Mid-Cap Index, e-mini, expires 09/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $45,176,601. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Real Estate Investment Trust |
76
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Portfolio Holdings as of August 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Telecommunication Services | | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at August 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
77
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $8,960,925,670) including securities on loan of $45,176,601 | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
Variation margin on future contracts | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
| Net Asset Value and Shares Outstanding have been retroactively adjusted to reflect a 3-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
78
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Statement of Operations
For the period September 1, 2023 through August 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $167,454) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on sales of in-kind redemptions - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
79
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES1 |
| | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS1 |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| For the period ended August 31, 2024, and the prior report period, transactions in fund shares have been retroactively adjusted to reflect a 3-for-1 share split effective after the close of U.S. markets on October 10, 2024. The retroactive adjustment of the share split does not change the transaction in fund shares values (see financial note 11 for additional information). |
80
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Small-Cap ETF
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)3 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| Per-Share Data has been retroactively adjusted to reflect a 2-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
| Per-Share Data has been retroactively adjusted to reflect a 2-for-1 share split effective after the close of U.S. markets on March 10, 2022. |
| Calculated based on the average shares outstanding during the period. |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
81
Schwab U.S. Small-Cap ETF
Portfolio Holdings as of August 31, 2024
| | |
COMMON STOCKS 99.9% OF NET ASSETS |
|
Automobiles & Components 1.3% |
| | |
American Axle & Manufacturing Holdings, Inc. * | | |
| | |
| | |
| | |
Faraday Future Intelligent Electric, Inc. *(a) | | |
Fox Factory Holding Corp. * | | |
| | |
| | |
Goodyear Tire & Rubber Co. * | | |
| | |
| | |
| | |
Luminar Technologies, Inc. *(a) | | |
Mobileye Global, Inc., Class A * | | |
Modine Manufacturing Co. * | | |
Mullen Automotive, Inc. * | | |
| | |
| | |
| | |
| | |
Standard Motor Products, Inc. | | |
| | |
| | |
| | |
Winnebago Industries, Inc. | | |
Workhorse Group, Inc. *(a) | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Atlantic Union Bankshares Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Berkshire Hills Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
Capitol Federal Financial, Inc. | | |
| | |
Central Pacific Financial Corp. | | |
Citizens Financial Services, Inc. | | |
| | |
Columbia Banking System, Inc. | | |
Columbia Financial, Inc. * | | |
| | |
Community Financial System, Inc. | | |
Community Trust Bancorp, Inc. | | |
| | |
CrossFirst Bankshares, Inc. * | | |
Customers Bancorp, Inc. * | | |
| | |
Dime Community Bancshares, Inc. | | |
| | |
| | |
Enterprise Financial Services Corp. | | |
| | |
Financial Institutions, Inc. | | |
| | |
First Bancorp/Southern Pines NC | | |
| | |
| | |
First Commonwealth Financial Corp. | | |
First Community Bankshares, Inc. | | |
| | |
First Financial Bankshares, Inc. | | |
First Financial Corp. (a) | | |
| | |
| | |
First Interstate BancSystem, Inc., Class A | | |
| | |
First Mid Bancshares, Inc. | | |
First of Long Island Corp. | | |
| | |
| | |
| | |
German American Bancorp, Inc. | | |
| | |
Great Southern Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
Heartland Financial USA, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Independent Bank Group, Inc. | | |
International Bancshares Corp. | | |
| | |
| | |
Live Oak Bancshares, Inc. | | |
| | |
Metrocity Bankshares, Inc. | | |
Midland States Bancorp, Inc. | | |
National Bank Holdings Corp., Class A | | |
| | |
| | |
| | |
| | |
Northwest Bancshares, Inc. | | |
OceanFirst Financial Corp. | | |
| | |
| | |
| | |
| | |
Pacific Premier Bancorp, Inc. | | |
82
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Small-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
Peapack-Gladstone Financial Corp. | | |
| | |
Pinnacle Financial Partners, Inc. | | |
| | |
| | |
| | |
Prosperity Bancshares, Inc. | | |
Provident Financial Services, Inc. | | |
| | |
| | |
Republic Bancorp, Inc., Class A | | |
| | |
Sandy Spring Bancorp, Inc. | | |
Seacoast Banking Corp. of Florida | | |
ServisFirst Bancshares, Inc. | | |
Simmons First National Corp., Class A | | |
Southside Bancshares, Inc. | | |
| | |
| | |
Stock Yards Bancorp, Inc. | | |
| | |
Texas Capital Bancshares, Inc. * | | |
| | |
| | |
| | |
| | |
Triumph Financial, Inc. * | | |
| | |
| | |
| | |
| | |
United Community Banks, Inc. | | |
| | |
| | |
| | |
| | |
Washington Trust Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Albany International Corp., Class A | | |
Allison Transmission Holdings, Inc. | | |
Ameresco, Inc., Class A * | | |
American Woodmark Corp. * | | |
Amprius Technologies, Inc. * | | |
| | |
| | |
Applied Industrial Technologies, Inc. | | |
Archer Aviation, Inc., Class A *(a) | | |
| | |
| | |
Armstrong World Industries, Inc. | | |
Array Technologies, Inc. * | | |
| | |
| | |
| | |
Atmus Filtration Technologies, Inc. | | |
| | |
| | |
Babcock & Wilcox Enterprises, Inc. * | | |
| | |
Beacon Roofing Supply, Inc. * | | |
| | |
Bloom Energy Corp., Class A * | | |
| | |
BlueLinx Holdings, Inc. * | | |
| | |
| | |
| | |
Centuri Holdings, Inc. *(a) | | |
ChargePoint Holdings, Inc. *(a) | | |
| | |
| | |
Comfort Systems USA, Inc. | | |
Construction Partners, Inc., Class A * | | |
Core & Main, Inc., Class A * | | |
| | |
| | |
Custom Truck One Source, Inc. * | | |
Desktop Metal, Inc., Class A *(a) | | |
Distribution Solutions Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Energy Vault Holdings, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Franklin Electric Co., Inc. | | |
| | |
| | |
FuelCell Energy, Inc. *(a) | | |
Gates Industrial Corp. PLC * | | |
| | |
Gibraltar Industries, Inc. * | | |
| | |
| | |
| | |
GrafTech International Ltd. * | | |
Granite Construction, Inc. | | |
Great Lakes Dredge & Dock Corp. * | | |
| | |
| | |
H&E Equipment Services, Inc. | | |
| | |
Helios Technologies, Inc. | | |
| | |
| | |
| | |
Hillman Solutions Corp. * | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
83
Schwab U.S. Small-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
Janus International Group, Inc. * | | |
| | |
John Bean Technologies Corp. | | |
| | |
| | |
Kratos Defense & Security Solutions, Inc. * | | |
| | |
| | |
| | |
| | |
Markforged Holding Corp. * | | |
| | |
| | |
| | |
MDU Resources Group, Inc. | | |
| | |
Microvast Holdings, Inc. * | | |
Montana Technologies Corp. *(a) | | |
| | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
Mueller Water Products, Inc., Class A | | |
| | |
National Presto Industries, Inc. | | |
| | |
NEXTracker, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Preformed Line Products Co. | | |
| | |
| | |
Quanex Building Products Corp. | | |
| | |
Resideo Technologies, Inc. * | | |
| | |
| | |
Rush Enterprises, Inc., Class A | | |
| | |
Shoals Technologies Group, Inc., Class A * | | |
| | |
Simpson Manufacturing Co., Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
SolarMax Technology, Inc. * | | |
Southland Holdings, Inc. * | | |
Spirit AeroSystems Holdings, Inc., Class A * | | |
| | |
Standex International Corp. | | |
| | |
Sterling Infrastructure, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Thermon Group Holdings, Inc. * | | |
| | |
| | |
| | |
Titan International, Inc. * | | |
| | |
TPI Composites, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Virgin Galactic Holdings, Inc. *(a) | | |
| | |
Watts Water Technologies, Inc., Class A | | |
| | |
Zurn Elkay Water Solutions Corp. | | |
| | |
|
Commercial & Professional Services 4.1% |
| | |
| | |
ACV Auctions, Inc., Class A * | | |
| | |
Barrett Business Services, Inc. | | |
Blacksky Technology, Inc. * | | |
| | |
BrightView Holdings, Inc. * | | |
| | |
Casella Waste Systems, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
CSG Systems International, Inc. | | |
| | |
Driven Brands Holdings, Inc. * | | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
| | |
ExlService Holdings, Inc. * | | |
| | |
| | |
FiscalNote Holdings, Inc. * | | |
Forrester Research, Inc. * | | |
| | |
| | |
| | |
Healthcare Services Group, Inc. * | | |
Heidrick & Struggles International, Inc. | | |
| | |
Huron Consulting Group, Inc. * | | |
| | |
| | |
| | |
Kelly Services, Inc., Class A | | |
| | |
| | |
LanzaTech Global, Inc. *(a) | | |
| | |
84
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Small-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Liquidity Services, Inc. * | | |
| | |
Matthews International Corp., Class A | | |
| | |
| | |
Montrose Environmental Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Resources Connection, Inc. | | |
Science Applications International Corp. | | |
| | |
| | |
Sterling Check Corp. *(a) | | |
| | |
| | |
| | |
UL Solutions, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 3.3% |
1-800-Flowers.com, Inc., Class A * | | |
| | |
Abercrombie & Fitch Co., Class A * | | |
Academy Sports & Outdoors, Inc. | | |
| | |
A-Mark Precious Metals, Inc. | | |
American Eagle Outfitters, Inc. | | |
America's Car-Mart, Inc. * | | |
| | |
| | |
Asbury Automotive Group, Inc. * | | |
| | |
| | |
| | |
| | |
Boot Barn Holdings, Inc. * | | |
| | |
| | |
Camping World Holdings, Inc., Class A | | |
| | |
| | |
| | |
Children's Place, Inc. *(a) | | |
Designer Brands, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Haverty Furniture Cos., Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
National Vision Holdings, Inc. * | | |
| | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
Petco Health & Wellness Co., Inc. * | | |
| | |
| | |
| | |
Sally Beauty Holdings, Inc. * | | |
Savers Value Village, Inc. * | | |
| | |
| | |
| | |
Sonic Automotive, Inc., Class A | | |
Sportsman's Warehouse Holdings, Inc. * | | |
Stitch Fix, Inc., Class A * | | |
Torrid Holdings, Inc. *(a) | | |
| | |
| | |
| | |
Victoria's Secret & Co. * | | |
Warby Parker, Inc., Class A * | | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 3.9% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Century Communities, Inc. | | |
| | |
| | |
| | |
Dream Finders Homes, Inc., Class A * | | |
Ethan Allen Interiors, Inc. | | |
| | |
| | |
G-III Apparel Group Ltd. * | | |
| | |
Green Brick Partners, Inc. * | | |
| | |
| | |
Installed Building Products, Inc. | | |
| | |
Johnson Outdoors, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Levi Strauss & Co., Class A | | |
| | |
| | |
Malibu Boats, Inc., Class A * | | |
| | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
85
Schwab U.S. Small-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
Peloton Interactive, Inc., Class A * | | |
Purple Innovation, Inc. * | | |
| | |
| | |
Skechers USA, Inc., Class A * | | |
Smith & Wesson Brands, Inc. | | |
Solo Brands, Inc., Class A * | | |
| | |
| | |
| | |
Taylor Morrison Home Corp. * | | |
Topgolf Callaway Brands Corp. * | | |
| | |
| | |
Tupperware Brands Corp. *(a)(b) | | |
Under Armour, Inc., Class A * | | |
| | |
Vizio Holding Corp., Class A * | | |
Wolverine World Wide, Inc. | | |
Worthington Enterprises, Inc. | | |
| | |
| | |
|
|
Accel Entertainment, Inc. * | | |
Adtalem Global Education, Inc. * | | |
| | |
| | |
| | |
Bowlero Corp., Class A (a) | | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Brinker International, Inc. * | | |
| | |
| | |
| | |
| | |
Choice Hotels International, Inc. (a) | | |
| | |
| | |
Cracker Barrel Old Country Store, Inc. (a) | | |
Dave & Buster's Entertainment, Inc. * | | |
| | |
| | |
| | |
Dutch Bros, Inc., Class A * | | |
El Pollo Loco Holdings, Inc. * | | |
European Wax Center, Inc., Class A * | | |
| | |
First Watch Restaurant Group, Inc. * | | |
| | |
Global Business Travel Group I * | | |
Golden Entertainment, Inc. | | |
Graham Holdings Co., Class B | | |
Grand Canyon Education, Inc. * | | |
| | |
Hilton Grand Vacations, Inc. * | | |
Hyatt Hotels Corp., Class A | | |
| | |
| | |
Kura Sushi USA, Inc., Class A *(a) | | |
| | |
| | |
Life Time Group Holdings, Inc. * | | |
| | |
Lindblad Expeditions Holdings, Inc. * | | |
Marriott Vacations Worldwide Corp. | | |
| | |
Monarch Casino & Resort, Inc. | | |
OneSpaWorld Holdings Ltd. | | |
Papa John's International, Inc. | | |
Penn Entertainment, Inc. * | | |
| | |
Planet Fitness, Inc., Class A * | | |
Playa Hotels & Resorts NV * | | |
Portillo's, Inc., Class A * | | |
RCI Hospitality Holdings, Inc. | | |
Red Rock Resorts, Inc., Class A | | |
Rush Street Interactive, Inc. * | | |
| | |
Shake Shack, Inc., Class A * | | |
Six Flags Entertainment Corp. | | |
Strategic Education, Inc. | | |
| | |
Sweetgreen, Inc., Class A * | | |
Target Hospitality Corp. * | | |
| | |
| | |
| | |
United Parks & Resorts, Inc. * | | |
Vacasa, Inc., Class A *(a) | | |
| | |
| | |
| | |
Xponential Fitness, Inc., Class A * | | |
| | |
|
Consumer Staples Distribution & Retail 0.6% |
| | |
| | |
Grocery Outlet Holding Corp. * | | |
Ingles Markets, Inc., Class A | | |
| | |
| | |
Sprouts Farmers Market, Inc. * | | |
United Natural Foods, Inc. * | | |
| | |
| | |
|
|
| | |
| | |
Atlas Energy Solutions, Inc. | | |
| | |
| | |
| | |
California Resources Corp. | | |
Centrus Energy Corp., Class A * | | |
| | |
| | |
| | |
Clean Energy Fuels Corp. * | | |
| | |
Comstock Resources, Inc. (a) | | |
| | |
| | |
Crescent Energy Co., Class A | | |
| | |
86
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Small-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Delek U.S. Holdings, Inc. | | |
Diamond Offshore Drilling, Inc. * | | |
| | |
| | |
| | |
| | |
Excelerate Energy, Inc., Class A | | |
Expro Group Holdings NV * | | |
Granite Ridge Resources, Inc. | | |
| | |
| | |
Helix Energy Solutions Group, Inc. * | | |
| | |
HighPeak Energy, Inc. (a) | | |
International Seaways, Inc. | | |
| | |
Kodiak Gas Services, Inc. | | |
| | |
| | |
Magnolia Oil & Gas Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
Oceaneering International, Inc. * | | |
Par Pacific Holdings, Inc. * | | |
Patterson-UTI Energy, Inc. | | |
PBF Energy, Inc., Class A | | |
| | |
| | |
ProFrac Holding Corp., Class A * | | |
| | |
REX American Resources Corp. * | | |
Riley Exploration Permian, Inc. | | |
| | |
Sable Offshore Corp. *(a) | | |
| | |
Select Water Solutions, Inc. | | |
Sitio Royalties Corp., Class A | | |
| | |
Southwestern Energy Co. * | | |
| | |
| | |
TETRA Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Weatherford International PLC | | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 5.5% |
| | |
| | |
Alexander & Baldwin, Inc. | | |
| | |
American Assets Trust, Inc. | | |
American Healthcare REIT, Inc. | | |
Apartment Investment & Management Co., Class A * | | |
Apple Hospitality REIT, Inc. | | |
Armada Hoffler Properties, Inc. | | |
| | |
| | |
Brixmor Property Group, Inc. | | |
Broadstone Net Lease, Inc. | | |
| | |
CBL & Associates Properties, Inc. | | |
| | |
| | |
| | |
Community Healthcare Trust, Inc. | | |
| | |
| | |
DiamondRock Hospitality Co. | | |
Diversified Healthcare Trust (b) | | |
| | |
Easterly Government Properties, Inc. | | |
| | |
Empire Resorts, Inc. *(a)(c) | | |
Empire State Realty Trust, Inc., Class A | | |
| | |
| | |
Essential Properties Realty Trust, Inc. | | |
First Industrial Realty Trust, Inc. | | |
Four Corners Property Trust, Inc. | | |
Franklin Street Properties Corp., Class C | | |
| | |
Gladstone Commercial Corp. | | |
Global Medical REIT, Inc. | | |
| | |
Highwoods Properties, Inc. | | |
Hudson Pacific Properties, Inc. | | |
Independence Realty Trust, Inc. | | |
Industrial Logistics Properties Trust | | |
Innovative Industrial Properties, Inc. | | |
InvenTrust Properties Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Medical Properties Trust, Inc. (a) | | |
National Health Investors, Inc. | | |
National Storage Affiliates Trust | | |
| | |
NexPoint Diversified Real Estate Trust | | |
NexPoint Residential Trust, Inc. | | |
Office Properties Income Trust | | |
One Liberty Properties, Inc. | | |
| | |
| | |
| | |
Park Hotels & Resorts, Inc. | | |
| | |
| | |
Phillips Edison & Co., Inc. | | |
Piedmont Office Realty Trust, Inc., Class A | | |
Plymouth Industrial REIT, Inc. | | |
| | |
| | |
Retail Opportunity Investments Corp. | | |
| | |
Ryman Hospitality Properties, Inc. | | |
Sabra Health Care REIT, Inc. | | |
| | |
| | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
87
Schwab U.S. Small-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
Summit Hotel Properties, Inc. | | |
Sunstone Hotel Investors, Inc. | | |
| | |
| | |
| | |
| | |
Universal Health Realty Income Trust | | |
| | |
| | |
| | |
Xenia Hotels & Resorts, Inc. | | |
| | |
|
|
Affiliated Managers Group, Inc. | | |
Affirm Holdings, Inc., Class A * | | |
| | |
| | |
Apollo Commercial Real Estate Finance, Inc. | | |
Arbor Realty Trust, Inc. (a) | | |
ARMOUR Residential REIT, Inc. | | |
Artisan Partners Asset Management, Inc., Class A | | |
AssetMark Financial Holdings, Inc. * | | |
AvidXchange Holdings, Inc. * | | |
B Riley Financial, Inc. (a) | | |
| | |
Blackstone Mortgage Trust, Inc., Class A (a) | | |
| | |
Bread Financial Holdings, Inc. | | |
Brightsphere Investment Group, Inc. | | |
BrightSpire Capital, Inc. | | |
| | |
| | |
Cass Information Systems, Inc. | | |
| | |
Claros Mortgage Trust, Inc. | | |
| | |
Diamond Hill Investment Group, Inc. | | |
Donnelley Financial Solutions, Inc. * | | |
| | |
Ellington Financial, Inc. | | |
| | |
Encore Capital Group, Inc. * | | |
Enova International, Inc. * | | |
| | |
Euronet Worldwide, Inc. * | | |
| | |
| | |
Federal Agricultural Mortgage Corp., Class C | | |
| | |
| | |
| | |
Forge Global Holdings, Inc. * | | |
Franklin BSP Realty Trust, Inc. | | |
Granite Point Mortgage Trust, Inc. | | |
Green Dot Corp., Class A * | | |
HA Sustainable Infrastructure Capital, Inc. | | |
| | |
Hamilton Lane, Inc., Class A | | |
| | |
International Money Express, Inc. * | | |
Invesco Mortgage Capital, Inc. | | |
Jackson Financial, Inc., Class A | | |
Janus Henderson Group PLC | | |
KKR Real Estate Finance Trust, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
NerdWallet, Inc., Class A * | | |
New York Mortgage Trust, Inc. | | |
| | |
NMI Holdings, Inc., Class A * | | |
| | |
Open Lending Corp., Class A * | | |
| | |
PennyMac Financial Services, Inc. | | |
PennyMac Mortgage Investment Trust | | |
| | |
PJT Partners, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rocket Cos., Inc., Class A * | | |
Shift4 Payments, Inc., Class A * | | |
| | |
StepStone Group, Inc., Class A | | |
| | |
| | |
TPG RE Finance Trust, Inc. | | |
| | |
Two Harbors Investment Corp. | | |
| | |
| | |
Victory Capital Holdings, Inc., Class A | | |
Virtu Financial, Inc., Class A | | |
Virtus Investment Partners, Inc. | | |
| | |
Waterstone Financial, Inc. | | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 1.6% |
| | |
| | |
| | |
Boston Beer Co., Inc., Class A * | | |
| | |
88
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Small-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
Coca-Cola Consolidated, Inc. | | |
Duckhorn Portfolio, Inc. * | | |
| | |
Fresh Del Monte Produce, Inc. | | |
| | |
Hain Celestial Group, Inc. * | | |
| | |
| | |
John B Sanfilippo & Son, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tootsie Roll Industries, Inc. | | |
| | |
Turning Point Brands, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Health Care Equipment & Services 6.0% |
23andMe Holding Co., Class A * | | |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
| | |
AirSculpt Technologies, Inc. *(a) | | |
Alignment Healthcare, Inc. * | | |
Alphatec Holdings, Inc. * | | |
| | |
American Well Corp., Class A * | | |
AMN Healthcare Services, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Aveanna Healthcare Holdings, Inc. * | | |
| | |
| | |
Bioventus, Inc., Class A * | | |
BrightSpring Health Services, Inc. * | | |
Brookdale Senior Living, Inc. * | | |
Butterfly Network, Inc. *(a) | | |
Castle Biosciences, Inc. * | | |
| | |
| | |
Clover Health Investments Corp. * | | |
Community Health Systems, Inc. * | | |
| | |
| | |
Cross Country Healthcare, Inc. * | | |
Definitive Healthcare Corp. * | | |
| | |
Doximity, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Evolent Health, Inc., Class A * | | |
| | |
| | |
| | |
Globus Medical, Inc., Class A * | | |
GoodRx Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Hims & Hers Health, Inc. * | | |
| | |
| | |
| | |
Inspire Medical Systems, Inc. * | | |
| | |
Integra LifeSciences Holdings Corp. * | | |
iRhythm Technologies, Inc. * | | |
Lantheus Holdings, Inc. * | | |
| | |
LifeStance Health Group, Inc. * | | |
| | |
Merit Medical Systems, Inc. * | | |
| | |
| | |
National HealthCare Corp. | | |
| | |
| | |
| | |
| | |
| | |
OmniAb, Inc., Class A *(c) | | |
OmniAb, Inc., Class B *(c) | | |
| | |
| | |
Option Care Health, Inc. * | | |
OraSure Technologies, Inc. * | | |
Orchestra BioMed Holdings, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pediatrix Medical Group, Inc. * | | |
| | |
| | |
| | |
| | |
Privia Health Group, Inc. * | | |
PROCEPT BioRobotics Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Select Medical Holdings Corp. | | |
Semler Scientific, Inc. * | | |
Senseonics Holdings, Inc. * | | |
| | |
| | |
| | |
Silk Road Medical, Inc. * | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
89
Schwab U.S. Small-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
Tandem Diabetes Care, Inc. * | | |
| | |
| | |
TransMedics Group, Inc. * | | |
Treace Medical Concepts, Inc. * | | |
| | |
U.S. Physical Therapy, Inc. | | |
| | |
| | |
| | |
| | |
|
Household & Personal Products 0.9% |
| | |
| | |
Central Garden & Pet Co. * | | |
Central Garden & Pet Co., Class A * | | |
Edgewell Personal Care Co. | | |
| | |
| | |
| | |
| | |
| | |
Nu Skin Enterprises, Inc., Class A | | |
| | |
Spectrum Brands Holdings, Inc. | | |
USANA Health Sciences, Inc. * | | |
| | |
| | |
|
|
Ambac Financial Group, Inc. * | | |
| | |
| | |
Axis Capital Holdings Ltd. | | |
Baldwin Insurance Group, Inc., Class A * | | |
Brighthouse Financial, Inc. * | | |
CNO Financial Group, Inc. | | |
| | |
| | |
F&G Annuities & Life, Inc. | | |
First American Financial Corp. | | |
Genworth Financial, Inc., Class A * | | |
Goosehead Insurance, Inc., Class A * | | |
| | |
Hanover Insurance Group, Inc. | | |
| | |
Horace Mann Educators Corp. | | |
James River Group Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Oscar Health, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Ryan Specialty Holdings, Inc. | | |
Safety Insurance Group, Inc. | | |
| | |
Selective Insurance Group, Inc. | | |
| | |
| | |
Skyward Specialty Insurance Group, Inc. * | | |
Stewart Information Services Corp. | | |
| | |
| | |
White Mountains Insurance Group Ltd. | | |
| | |
|
|
| | |
Alpha Metallurgical Resources, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Carpenter Technology Corp. | | |
| | |
| | |
| | |
| | |
| | |
Compass Minerals International, Inc. | | |
Danimer Scientific, Inc. * | | |
| | |
| | |
| | |
Ginkgo Bioworks Holdings, Inc. *(a) | | |
Graphic Packaging Holding Co. | | |
| | |
| | |
Haynes International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mercer International, Inc. | | |
| | |
Minerals Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Piedmont Lithium, Inc. *(a) | | |
PureCycle Technologies, Inc. *(a) | | |
| | |
Radius Recycling, Inc., Class A | | |
90
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Small-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
Sensient Technologies Corp. | | |
| | |
| | |
Summit Materials, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
U.S. Lime & Minerals, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 2.3% |
Advantage Solutions, Inc. * | | |
Altice USA, Inc., Class A * | | |
AMC Networks, Inc., Class A * | | |
| | |
Atlanta Braves Holdings, Inc., Class C * | | |
| | |
| | |
| | |
| | |
| | |
Cinemark Holdings, Inc. * | | |
Clear Channel Outdoor Holdings, Inc. * | | |
EchoStar Corp., Class A * | | |
Endeavor Group Holdings, Inc., Class A (a) | | |
Eventbrite, Inc., Class A * | | |
EW Scripps Co., Class A * | | |
| | |
| | |
Getty Images Holdings, Inc. *(a) | | |
| | |
| | |
| | |
Ibotta, Inc., Class A *(a) | | |
iHeartMedia, Inc., Class A * | | |
Integral Ad Science Holding Corp. * | | |
John Wiley & Sons, Inc., Class A | | |
Liberty Media Corp.-Liberty Live, Class C * | | |
Lions Gate Entertainment Corp., Class A * | | |
Madison Square Garden Entertainment Corp. * | | |
Madison Square Garden Sports Corp. * | | |
| | |
MediaAlpha, Inc., Class A * | | |
New York Times Co., Class A | | |
Nexstar Media Group, Inc. | | |
Nextdoor Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sphere Entertainment Co. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Vivid Seats, Inc., Class A * | | |
Warner Music Group Corp., Class A | | |
| | |
| | |
| | |
ZipRecruiter, Inc., Class A * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 8.4% |
10X Genomics, Inc., Class A * | | |
| | |
4D Molecular Therapeutics, Inc. * | | |
| | |
| | |
ACADIA Pharmaceuticals, Inc. * | | |
| | |
Aclaris Therapeutics, Inc. * | | |
Acrivon Therapeutics, Inc. *(a) | | |
Adaptive Biotechnologies Corp. * | | |
| | |
| | |
Agios Pharmaceuticals, Inc. * | | |
Akero Therapeutics, Inc. * | | |
Akoya Biosciences, Inc. *(a) | | |
| | |
| | |
Allogene Therapeutics, Inc. * | | |
| | |
Alto Neuroscience, Inc. *(a) | | |
ALX Oncology Holdings, Inc. * | | |
Amicus Therapeutics, Inc. * | | |
Amneal Pharmaceuticals, Inc. * | | |
Amphastar Pharmaceuticals, Inc. * | | |
Amylyx Pharmaceuticals, Inc. * | | |
| | |
Anavex Life Sciences Corp. *(a) | | |
ANI Pharmaceuticals, Inc. * | | |
Anika Therapeutics, Inc. * | | |
Apellis Pharmaceuticals, Inc. * | | |
Apogee Therapeutics, Inc. * | | |
| | |
Arcturus Therapeutics Holdings, Inc. * | | |
Arcus Biosciences, Inc. * | | |
Arcutis Biotherapeutics, Inc. * | | |
| | |
ArriVent Biopharma, Inc. * | | |
Arrowhead Pharmaceuticals, Inc. * | | |
ARS Pharmaceuticals, Inc. * | | |
| | |
Atara Biotherapeutics, Inc. * | | |
Atea Pharmaceuticals, Inc. * | | |
| | |
Avidity Biosciences, Inc. * | | |
Axsome Therapeutics, Inc. * | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
91
Schwab U.S. Small-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
Beam Therapeutics, Inc. * | | |
BioCryst Pharmaceuticals, Inc. * | | |
| | |
BioLife Solutions, Inc. * | | |
| | |
Bioxcel Therapeutics, Inc. * | | |
Blueprint Medicines Corp. * | | |
| | |
| | |
Cara Therapeutics, Inc. * | | |
| | |
Cargo Therapeutics, Inc. * | | |
Caribou Biosciences, Inc. * | | |
Cassava Sciences, Inc. *(a) | | |
Catalyst Pharmaceuticals, Inc. * | | |
Celldex Therapeutics, Inc. * | | |
Century Therapeutics, Inc. * | | |
| | |
Cogent Biosciences, Inc. * | | |
Coherus Biosciences, Inc. * | | |
Collegium Pharmaceutical, Inc. * | | |
Contineum Therapeutics, Inc., Class A *(a) | | |
Corcept Therapeutics, Inc. * | | |
Crinetics Pharmaceuticals, Inc. * | | |
| | |
| | |
Cullinan Therapeutics, Inc. * | | |
Cytek Biosciences, Inc. * | | |
| | |
Day One Biopharmaceuticals, Inc. * | | |
Denali Therapeutics, Inc. * | | |
Design Therapeutics, Inc. * | | |
| | |
Dynavax Technologies Corp. * | | |
Dyne Therapeutics, Inc. * | | |
Eagle Pharmaceuticals, Inc. * | | |
Edgewise Therapeutics, Inc. * | | |
| | |
Emergent BioSolutions, Inc. *(b) | | |
Enanta Pharmaceuticals, Inc. * | | |
Enliven Therapeutics, Inc. * | | |
Entrada Therapeutics, Inc. * | | |
| | |
| | |
Fate Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Halozyme Therapeutics, Inc. * | | |
Harmony Biosciences Holdings, Inc. * | | |
Heron Therapeutics, Inc. * | | |
| | |
| | |
Ideaya Biosciences, Inc. * | | |
IGM Biosciences, Inc. *(a) | | |
| | |
| | |
| | |
| | |
Intellia Therapeutics, Inc. * | | |
Intra-Cellular Therapies, Inc. * | | |
| | |
Ionis Pharmaceuticals, Inc. * | | |
Iovance Biotherapeutics, Inc. * | | |
| | |
Ironwood Pharmaceuticals, Inc. * | | |
iTeos Therapeutics, Inc. * | | |
Keros Therapeutics, Inc. * | | |
| | |
| | |
| | |
Kymera Therapeutics, Inc. * | | |
Kyverna Therapeutics, Inc. *(a) | | |
Lexicon Pharmaceuticals, Inc. *(a) | | |
Ligand Pharmaceuticals, Inc. * | | |
Lyell Immunopharma, Inc. * | | |
| | |
Madrigal Pharmaceuticals, Inc. * | | |
| | |
Maravai LifeSciences Holdings, Inc., Class A * | | |
| | |
| | |
| | |
Mind Medicine MindMed, Inc. *(a) | | |
Mineralys Therapeutics, Inc. * | | |
Mirum Pharmaceuticals, Inc. * | | |
Monte Rosa Therapeutics, Inc. * | | |
| | |
| | |
| | |
Neumora Therapeutics, Inc. * | | |
| | |
Nurix Therapeutics, Inc. * | | |
Nuvalent, Inc., Class A * | | |
| | |
| | |
| | |
Organogenesis Holdings, Inc. * | | |
Pacific Biosciences of California, Inc. *(a) | | |
Pacira BioSciences, Inc. * | | |
| | |
Phathom Pharmaceuticals, Inc. *(a) | | |
Phibro Animal Health Corp., Class A | | |
Pliant Therapeutics, Inc. * | | |
PMV Pharmaceuticals, Inc. * | | |
Poseida Therapeutics, Inc. * | | |
| | |
Prelude Therapeutics, Inc. * | | |
Prestige Consumer Healthcare, Inc. * | | |
Prime Medicine, Inc. *(a) | | |
| | |
Protagonist Therapeutics, Inc. * | | |
| | |
| | |
| | |
RAPT Therapeutics, Inc. * | | |
Recursion Pharmaceuticals, Inc., Class A *(a) | | |
| | |
Relay Therapeutics, Inc. * | | |
| | |
Revance Therapeutics, Inc. * | | |
REVOLUTION Medicines, Inc. * | | |
Rhythm Pharmaceuticals, Inc. * | | |
Rocket Pharmaceuticals, Inc. * | | |
Sage Therapeutics, Inc. * | | |
Sana Biotechnology, Inc. * | | |
Sangamo Therapeutics, Inc. * | | |
Scholar Rock Holding Corp. * | | |
Scilex Holding Co. *(a)(c) | | |
| | |
92
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Small-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
Seres Therapeutics, Inc. *(a) | | |
| | |
| | |
SpringWorks Therapeutics, Inc. * | | |
Stoke Therapeutics, Inc. * | | |
Summit Therapeutics, Inc. *(a) | | |
Supernus Pharmaceuticals, Inc. * | | |
Syndax Pharmaceuticals, Inc. * | | |
Tango Therapeutics, Inc. * | | |
Tarsus Pharmaceuticals, Inc. * | | |
| | |
Theravance Biopharma, Inc. * | | |
Third Harmonic Bio, Inc. * | | |
Travere Therapeutics, Inc. * | | |
| | |
| | |
Ultragenyx Pharmaceutical, Inc. * | | |
| | |
Vanda Pharmaceuticals, Inc. * | | |
| | |
Ventyx Biosciences, Inc. * | | |
Vera Therapeutics, Inc. * | | |
| | |
| | |
Verve Therapeutics, Inc. * | | |
Viking Therapeutics, Inc. * | | |
Vir Biotechnology, Inc. * | | |
Viridian Therapeutics, Inc. * | | |
| | |
Y-mAbs Therapeutics, Inc. * | | |
Zentalis Pharmaceuticals, Inc. * | | |
| | |
| | |
|
Real Estate Management & Development 0.6% |
Anywhere Real Estate, Inc. * | | |
| | |
Cushman & Wakefield PLC * | | |
DigitalBridge Group, Inc. | | |
eXp World Holdings, Inc. (a) | | |
| | |
| | |
Howard Hughes Holdings, Inc. * | | |
Kennedy-Wilson Holdings, Inc. | | |
| | |
Newmark Group, Inc., Class A | | |
Offerpad Solutions, Inc. *(a) | | |
Opendoor Technologies, Inc. * | | |
RE/MAX Holdings, Inc., Class A * | | |
| | |
| | |
Seaport Entertainment Group, Inc. * | | |
Seritage Growth Properties, Class A * | | |
| | |
| | |
| | |
| | |
|
Semiconductors & Semiconductor Equipment 2.6% |
ACM Research, Inc., Class A * | | |
| | |
Allegro MicroSystems, Inc. * | | |
Alpha & Omega Semiconductor Ltd. * | | |
| | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Credo Technology Group Holding Ltd. * | | |
| | |
| | |
| | |
| | |
indie Semiconductor, Inc., Class A * | | |
Kulicke & Soffa Industries, Inc. | | |
MACOM Technology Solutions Holdings, Inc. * | | |
| | |
| | |
Navitas Semiconductor Corp. * | | |
| | |
| | |
| | |
| | |
| | |
Rigetti Computing, Inc. *(a) | | |
| | |
Silicon Laboratories, Inc. * | | |
| | |
SkyWater Technology, Inc. * | | |
SMART Global Holdings, Inc. * | | |
| | |
Ultra Clean Holdings, Inc. * | | |
Veeco Instruments, Inc. * | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Alarm.com Holdings, Inc. * | | |
Alkami Technology, Inc. * | | |
Altair Engineering, Inc., Class A * | | |
Amplitude, Inc., Class A * | | |
Appfolio, Inc., Class A * | | |
| | |
Applied Digital Corp. *(a) | | |
| | |
| | |
Aurora Innovation, Inc. * | | |
| | |
BigCommerce Holdings, Inc. * | | |
| | |
| | |
Blend Labs, Inc., Class A * | | |
| | |
| | |
C3.ai, Inc., Class A *(a) | | |
CCC Intelligent Solutions Holdings, Inc. * | | |
| | |
| | |
| | |
Clear Secure, Inc., Class A | | |
Clearwater Analytics Holdings, Inc., Class A * | | |
CommVault Systems, Inc. * | | |
Confluent, Inc., Class A * | | |
Consensus Cloud Solutions, Inc. * | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
93
Schwab U.S. Small-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
DigitalOcean Holdings, Inc. * | | |
Dolby Laboratories, Inc., Class A | | |
| | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
E2open Parent Holdings, Inc. * | | |
Enfusion, Inc., Class A * | | |
| | |
| | |
Expensify, Inc., Class A * | | |
| | |
Freshworks, Inc., Class A * | | |
| | |
Grid Dynamics Holdings, Inc. * | | |
| | |
HashiCorp, Inc., Class A * | | |
| | |
iLearningEngines Holdings, Inc. *(a) | | |
Informatica, Inc., Class A * | | |
Instructure Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
LiveRamp Holdings, Inc. * | | |
Marathon Digital Holdings, Inc. * | | |
| | |
| | |
MicroStrategy, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
PowerSchool Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Rackspace Technology, Inc. * | | |
| | |
RingCentral, Inc., Class A * | | |
| | |
| | |
| | |
SEMrush Holdings, Inc., Class A * | | |
SentinelOne, Inc., Class A * | | |
| | |
Smartsheet, Inc., Class A * | | |
| | |
SoundHound AI, Inc., Class A *(a) | | |
Sprinklr, Inc., Class A * | | |
Sprout Social, Inc., Class A * | | |
| | |
| | |
Squarespace, Inc., Class A * | | |
| | |
| | |
| | |
Thoughtworks Holding, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Weave Communications, Inc. * | | |
| | |
| | |
| | |
Zeta Global Holdings Corp., Class A * | | |
| | |
| | |
|
Technology Hardware & Equipment 3.5% |
| | |
| | |
Advanced Energy Industries, Inc. | | |
Aeva Technologies, Inc. * | | |
Arlo Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Benchmark Electronics, Inc. | | |
| | |
| | |
| | |
CommScope Holding Co., Inc. * | | |
Comtech Telecommunications Corp. *(a) | | |
| | |
| | |
| | |
| | |
Digi International, Inc. * | | |
| | |
Evolv Technologies Holdings, Inc. * | | |
| | |
| | |
FARO Technologies, Inc. * | | |
| | |
| | |
Insight Enterprises, Inc. * | | |
| | |
| | |
| | |
Kimball Electronics, Inc. * | | |
| | |
Lightwave Logic, Inc. *(a) | | |
| | |
Lumentum Holdings, Inc. * | | |
Methode Electronics, Inc. | | |
| | |
Mirion Technologies, Inc. * | | |
Napco Security Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
94
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Small-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
| | |
| | |
| | |
Ribbon Communications, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Vishay Intertechnology, Inc. | | |
| | |
| | |
| | |
|
Telecommunication Services 0.7% |
| | |
| | |
Bandwidth, Inc., Class A * | | |
Cogent Communications Holdings, Inc. | | |
Consolidated Communications Holdings, Inc. * | | |
Frontier Communications Parent, Inc. * | | |
| | |
| | |
| | |
Iridium Communications, Inc. | | |
Liberty Latin America Ltd., Class C * | | |
Lumen Technologies, Inc. * | | |
Shenandoah Telecommunications Co. | | |
Telephone & Data Systems, Inc. | | |
| | |
| | |
|
|
Air Transport Services Group, Inc. * | | |
| | |
| | |
| | |
Frontier Group Holdings, Inc. * | | |
| | |
Hawaiian Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Proficient Auto Logistics, Inc. * | | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
Spirit Airlines, Inc. (a) | | |
Sun Country Airlines Holdings, Inc. * | | |
Universal Logistics Holdings, Inc. | | |
| | |
| | |
|
| | |
|
| | |
| | |
American States Water Co. | | |
| | |
| | |
California Water Service Group | | |
Chesapeake Utilities Corp. | | |
Clearway Energy, Inc., Class C | | |
Hawaiian Electric Industries, Inc. * | | |
| | |
| | |
| | |
Montauk Renewables, Inc. * | | |
| | |
New Jersey Resources Corp. | | |
Northwest Natural Holding Co. | | |
Northwestern Energy Group, Inc. | | |
| | |
| | |
| | |
| | |
Portland General Electric Co. | | |
| | |
Southwest Gas Holdings, Inc. | | |
| | |
Sunnova Energy International, Inc. *(a) | | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $15,107,481,211) | |
| | |
SHORT-TERM INVESTMENTS 1.2% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (d) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (d)(e) | | |
| | |
Total Short-Term Investments
(Cost $219,674,745) | |
Total Investments in Securities
(Cost $15,327,155,956) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
Russell 2000 Index, e-mini, expires 09/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $196,119,556. |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
95
Schwab U.S. Small-Cap ETF
Portfolio Holdings as of August 31, 2024 (continued)
| Issuer is an affiliated company, as the investment adviser owns at least 5% of the voting securities of such company. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Real Estate Investment Trust |
Below is a summary of the fund’s transactions with affiliated issuers and companies which are or were affiliates during the period ended August 31, 2024. An affiliated company is a company in which the investment adviser has or had an ownership of at least 5% of the voting securities of a security issue during the report period. A dash in the Value at August 31, 2023, and/or Value at August 31, 2024, columns means either the issuer was not held or not held as an affiliate at the beginning of period and is no longer held at period end or the issuer is held at period end but is no longer an affiliate.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 8/31/24 | |
COMMON STOCKS 0.0% OF NET ASSETS |
|
Consumer Durables & Apparel 0.0% |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
Equity Real Estate Investment Trusts (REITs) 0.0% |
Diversified Healthcare Trust | | | | | | | | |
|
Pharmaceuticals, Biotechnology & Life Sciences 0.0% |
Emergent BioSolutions, Inc. | | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Equity Real Estate Investment Trusts (REITs) | | | | |
Health Care Equipment & Services | | | | |
Pharmaceuticals, Biotechnology & Life Sciences | | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at August 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
96
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Small-Cap ETF
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $15,734,519) including securities on loan of $219,240 | | |
Investments in securities, at value - unaffiliated issuers (cost $15,311,421,437) including securities on loan of $195,900,316 | | |
| | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
Variation margin on future contracts | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
| Net Asset Value and Shares Outstanding have been retroactively adjusted to reflect a 2-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
97
Schwab U.S. Small-Cap ETF
Statement of Operations
For the period September 1, 2023 through August 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $155,137) | | |
| | |
Dividends received from securities - affiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on sales of in-kind redemptions - affiliated issuers | | |
Net realized gains on sales of in-kind redemptions - unaffiliated issuers | | |
Net realized losses on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
98
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Small-Cap ETF
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES1 |
| | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS1 |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| For the period ended August 31, 2024, and the prior report period, transactions in fund shares have been retroactively adjusted to reflect a 2-for-1 share split effective after the close of U.S. markets on October 10, 2024. The retroactive adjustment of the share split does not change the transaction in fund shares values (see financial note 11 for additional information). |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
99
Schwab U.S. Dividend Equity ETF
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)2 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| Per-Share Data has been retroactively adjusted to reflect a 3-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
| Calculated based on the average shares outstanding during the period. |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
100
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Dividend Equity ETF
Portfolio Holdings as of August 31, 2024
| | |
COMMON STOCKS 99.8% OF NET ASSETS |
|
Automobiles & Components 1.7% |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Central Pacific Financial Corp. | | |
| | |
Columbia Banking System, Inc. | | |
| | |
| | |
| | |
| | |
| | |
First Commonwealth Financial Corp. | | |
German American Bancorp, Inc. | | |
Heartland Financial USA, Inc. | | |
| | |
Huntington Bancshares, Inc. | | |
International Bancshares Corp. | | |
| | |
| | |
| | |
Northwest Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
| | |
| | |
|
Commercial & Professional Services 2.1% |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 5.5% |
| | |
| | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 0.8% |
| | |
Ethan Allen Interiors, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
|
Cracker Barrel Old Country Store, Inc. (a) | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Artisan Partners Asset Management, Inc., Class A | | |
| | |
| | |
Janus Henderson Group PLC | | |
| | |
T. Rowe Price Group, Inc. | | |
Virtus Investment Partners, Inc. | | |
| | |
| | |
|
Food, Beverage & Tobacco 12.7% |
| | |
| | |
| | |
| | |
| | |
|
Household & Personal Products 1.9% |
| | |
|
|
| | |
Cincinnati Financial Corp. | | |
Fidelity National Financial, Inc. | | |
| | |
| | |
|
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
101
Schwab U.S. Dividend Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
| | |
|
| | |
CF Industries Holdings, Inc. | | |
| | |
LyondellBasell Industries NV, Class A | | |
Packaging Corp. of America | | |
| | |
|
Media & Entertainment 0.7% |
Interpublic Group of Cos., Inc. | | |
Nexstar Media Group, Inc. | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 16.0% |
| | |
| | |
| | |
| | |
| | |
|
Semiconductors & Semiconductor Equipment 4.7% |
| | |
| | |
| | |
|
Technology Hardware & Equipment 4.0% |
| | |
|
Telecommunication Services 3.7% |
Verizon Communications, Inc. | | |
|
|
CH Robinson Worldwide, Inc. | | |
United Parcel Service, Inc., Class B | | |
| | |
|
|
Clearway Energy, Inc., Class A | | |
Total Common Stocks
(Cost $53,807,332,755) | |
| | |
SHORT-TERM INVESTMENTS 0.1% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (b) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (b)(c) | | |
| | |
Total Short-Term Investments
(Cost $51,569,940) | |
Total Investments in Securities
(Cost $53,858,902,695) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
Dow Jones Industrial Average Index, e-mini, expires 09/20/24 | | | |
S&P 400 Mid-Cap Index, e-mini, expires 09/20/24 | | | |
| | | |
| All or a portion of this security is on loan. Securities on loan were valued at $1,460,502. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
102
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Dividend Equity ETF
Portfolio Holdings as of August 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
103
Schwab U.S. Dividend Equity ETF
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $53,858,902,695) including securities on loan of $1,460,502 | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Variation margin on future contracts | | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
| Net Asset Value and Shares Outstanding have been retroactively adjusted to reflect a 3-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 11 for additional information). |
104
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Schwab U.S. Dividend Equity ETF
Statement of Operations
For the period September 1, 2023 through August 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $87,033) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on sales of in-kind redemptions - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
105
Schwab U.S. Dividend Equity ETF
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES1 |
| | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS1 |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| For the period ended August 31, 2024, and the prior report period, transactions in fund shares have been retroactively adjusted to reflect a 3-for-1 share split effective after the close of U.S. markets on October 10, 2024. The retroactive adjustment of the share split does not change the transaction in fund shares values (see financial note 11 for additional information). |
106
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
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 U.S. Broad Market ETF | Schwab Short-Term U.S. Treasury ETF |
| Schwab Intermediate-Term U.S. Treasury ETF |
Schwab U.S. Large-Cap ETF | Schwab Long-Term U.S. Treasury ETF |
Schwab U.S. Large-Cap Growth ETF | Schwab U.S. Aggregate Bond ETF |
Schwab U.S. Large-Cap Value ETF | Schwab 1-5 Year Corporate Bond ETF |
| Schwab 5-10 Year Corporate Bond ETF |
Schwab U.S. Small-Cap ETF | Schwab Fundamental U.S. Broad Market ETF |
Schwab U.S. Dividend Equity ETF | Schwab Fundamental U.S. Large Company ETF |
| Schwab Fundamental U.S. Small Company ETF |
Schwab International Dividend Equity ETF | Schwab Fundamental International Equity ETF |
Schwab International Equity ETF | Schwab Fundamental International Small Equity ETF |
Schwab International Small-Cap Equity ETF | Schwab Fundamental Emerging Markets Equity ETF |
Schwab Emerging Markets Equity ETF | |
Schwab Ultra-Short Income ETF | Schwab Crypto Thematic ETF |
| Schwab High Yield Bond ETF |
Schwab Municipal Bond ETF | |
The funds issue and redeem shares at their net asset value per share (NAV) only in large blocks of shares (Creation Units). These transactions are usually in exchange for a basket of securities and/or an amount of cash. As a practical matter, only institutional investors who have entered into an authorized participant agreement purchase or redeem Creation Units. Except when aggregated in Creation Units, shares of the funds 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). A chart showing the frequency at which each fund’s daily closing market price was at a discount or premium to each fund’s NAV can be found at www.schwabassetmanagement.com.
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. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
The Schwab U.S. Broad Market ETF’s goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S.Broad Stock Market Index.
The Schwab 1000 Index ETF’s goal is to track as closely as possible, before fees and expenses, the total return of the Schwab 1000 Index® .
The Schwab U.S. Large-Cap ETF’s goal is 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 Schwab U.S. Large-Cap Growth ETF’s goal is 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 Schwab U.S. Large-Cap Value ETF’s goal is 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 Schwab U.S. Mid-Cap ETF’s goal is 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 Schwab U.S. Small-Cap ETF’s goal is 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.
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
107
Financial Notes (continued)
1. Business Structure of the Funds (continued):
The Schwab U.S. Dividend Equity ETF’s goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100™ Index.
2. Significant Accounting Policies:The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The funds may invest in mutual funds and exchange-traded funds (ETFs) which are referred to as “underlying funds”. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports and holdings and financial statements, which are filed in Form N-CSR with the U.S. Securities and Exchange Commission (SEC) and available on the SEC’s website at www.sec.gov.
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees (the Board) has designated authority to a Valuation Designee, the funds’ investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the funds’ portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee 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 the mean of the most recent bid and ask quotes.
● Futures contracts: Futures contracts are valued at their settlement prices as of the close of their exchanges.
● Mutual funds: Mutual funds are valued at their respective NAVs.
● Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value a fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s 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. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods 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. 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.
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 methods 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 it is determined 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 the Valuation Designee’s judgment will be required to estimate fair value.
108
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Financial Notes (continued)
2. Significant Accounting Policies (continued):
The three levels of the fair value hierarchy are as follows:
● Level 1 — quoted prices in active markets for identical investments — Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, ETFs and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held which could be Level 1, Level 2 or Level 3 in the fair value hierarchy.
● 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 forward foreign currency exchange contracts, 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.
● Level 3 — significant unobservable inputs (including the Valuation Designee’s 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 readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore a fund’s results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the funds’ investments as of August 31, 2024, are disclosed in each fund’s 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 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 pursuant to Rule 2a-7 under 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 or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. 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. The aggregate fair 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. Securities lending fees paid to the unaffiliated lending agent start at 9% of gross lending revenue, with subsequent breakpoints to a low of 5%. In this context, the gross lending revenue equals the income received from the investment of cash collateral and fees paid by borrowers less any rebates paid to the borrowers. Any expenses charged by the cash collateral fund are in addition to these fees. All remaining revenue is retained by the fund, as applicable. No portion of lending revenue is paid to or retained by the investment adviser or any of its affiliates.
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
109
Financial Notes (continued)
2. Significant Accounting Policies (continued):
As of August 31, 2024, Schwab U.S. Broad Market ETF, Schwab 1000 Index 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 had securities on loan, all of which were classified as common stocks. The value of the securities on loan and the related collateral as of August 31, 2024 are disclosed in each fund’s Portfolio Holdings and Statement of Assets and Liabilities.
Passive Foreign Investment Companies: Certain funds may own shares in certain foreign corporations that meet the Internal Revenue Code, as amended, definition of a Passive Foreign Investment Company (PFIC). The funds may elect for tax purposes to mark-to-market annually the shares of each PFIC lot held and would be required to distribute as ordinary income to shareholders any such marked-to-market gains (as well as any gains realized on sale).
(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.
Interest income is recorded as it accrues. Dividends, in the form of cash or non-cash income such as in the form of additional securities, 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 date the ex-dividend date is confirmed. 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.
Pursuant to the Amended and Restated Advisory Agreement (Advisory Agreement) between the investment adviser and the trust, the investment adviser will pay the operating expenses of each fund, excluding taxes, any brokerage expenses, and extraordinary or non-routine expenses. Taxes, any brokerage expenses and extraordinary or non-routine expenses that are specific to a fund are charged directly to the fund. The Advisory Agreement excludes paying acquired fund fees and expenses, which are indirect expenses incurred by a fund through its investments in underlying funds.
(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. To receive a distribution, you must be a registered shareholder on the record date. Distributions are paid to shareholders on the payable date.
(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 under subchapter M of the Internal Revenue Code, as amended. 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.
110
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Financial Notes (continued)
2. Significant Accounting Policies (continued):
(i) Foreign Taxes:
The funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges 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 each fund’s Statement of Operation.
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.
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. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in a fund will fluctuate, which means that an investor could lose money over short or long periods.
Investment Style Risk. The funds are index funds. Therefore, each fund follows the securities included in its respective index, which may include real estate investment trusts, 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. Errors relating to an index may occur from time to time and may not be identified by the index provided for a period of time. In addition, market disruptions could cause delays in an index’s rebalancing schedule. Such errors and/or market disruptions may result in losses for a fund.
Schwab U.S. Dividend Equity ETF primarily invests in dividend paying stocks. As a result, fund performance will correlate with the performance of the dividend paying stock segment of the stock market, and the fund may underperform funds that do not limit their investments to dividend paying stocks. If stocks held by the fund reduce or stop paying dividends, the fund’s ability to generate income may be affected.
Non-Diversification Risk.
With respect to certain funds, to the extent that a fund becomes non-diversified as necessary to approximate the composition of its index, it may invest in the securities of relatively few issuers. As a result, a single adverse economic or regulatory occurrence may have a more significant effect on the fund’s investments, and the fund may experience increased volatility.
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.
Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, a fund’s performance could be impacted.
Large-Cap Company Risk. Certain funds invest in large-cap company stocks. Large-cap companies are generally more mature and the securities issued by these companies may not be able to reach the same levels of growth as the securities issued by small- or mid-cap companies.
Mid-Cap Company Risk. Certain funds invest in mid-cap company stocks. Mid-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies and the value of securities issued by these companies may move sharply.
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
111
Financial Notes (continued)
3. Risk Factors (continued):
Small-Cap Company Risk. Certain funds invest in small-cap company stocks. Securities issued by small-cap companies may be riskier than those issued by larger companies, and their prices may move sharply, especially during market upturns and downturns.
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 investment 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 index.
Tracking Error Risk. As index funds, each fund seeks to track the performance of its respective 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, market risk, liquidity risk and leverage 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 gains. A fund’s use of derivatives could reduce the fund’s performance, increase its volatility and cause the fund to lose more than the initial amount invested. A fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that a fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract. 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 fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the fund may have to sell them at a loss.
Leverage Risk. Certain fund transactions, such as derivatives transactions, may give rise to a form of leverage and may expose a fund to greater risk. Leverage tends to magnify the effect of any decrease or increase in the value of a fund’s portfolio securities which means even a small amount of leverage can have a disproportionately large impact on a fund. The use of leverage may cause a fund to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy its obligations.
Securities Lending Risk. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities 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 vulnerable to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector or asset class.
112
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Financial Notes (continued)
3. Risk Factors (continued):
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. An investor may pay more than NAV when buying shares of a fund in the secondary market, and an investor may receive less than NAV when selling those shares in the secondary market. The market price of fund shares may deviate, sometimes significantly, from NAV during periods of market volatility or market disruption.
Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.
4. Affiliates and Affiliated Transactions:Charles Schwab Investment Management, Inc., dba Schwab Asset Management, a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser pursuant to the Advisory Agreement between the investment adviser and the trust.
For its advisory services to the funds, the investment adviser is entitled to receive an annual management 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 GROWTH ETF | SCHWAB U.S. LARGE-CAP VALUE ETF | | | SCHWAB U.S. DIVIDEND EQUITY ETF |
| | | | | | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
113
Financial Notes (continued)
4. Affiliates and Affiliated Transactions (continued):
Investment from Affiliates
Certain funds in the Fund Complex may own shares of other funds in the Fund Complex. The table below reflects the percentages of shares of each fund in this report that are owned by other funds in the Fund Complex as of August 31, 2024, as applicable:
| |
| | | SCHWAB U.S. DIVIDEND EQUITY ETF |
Schwab Monthly Income Fund - Flexible Payout | | | |
Schwab Monthly Income Fund - Income Payout | | | |
Schwab Monthly Income Fund - Target Payout | | | |
Schwab Target 2010 Index Fund | | | |
Schwab Target 2015 Index Fund | | | |
Schwab Target 2020 Index Fund | | | |
Schwab Target 2025 Index Fund | | | |
Schwab Target 2030 Index Fund | | | |
Schwab Target 2035 Index Fund | | | |
Schwab Target 2040 Index Fund | | | |
Schwab Target 2045 Index Fund | | | |
Schwab Target 2050 Index Fund | | | |
Schwab Target 2055 Index Fund | | | |
Schwab Target 2060 Index Fund | | | |
Schwab Target 2065 Index Fund | | | |
Schwab VIT Balanced Portfolio | | | |
Schwab VIT Balanced with Growth Portfolio | | | |
Schwab VIT Growth Portfolio | | | |
The funds may engage in direct transactions with certain other funds in the Fund Complex in accordance with procedures adopted by the Board pursuant to Rule 17a-7 under the 1940 Act. When one fund is seeking to sell a security that another fund is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs while allowing each fund to execute the transaction at the current market price. This practice is limited to funds that share the same investment adviser, trustees and/or officers. The net realized gains or losses on sales of interfund transactions are recorded in Net realized gains (losses) on sales of securities — unaffiliated issuers in the Statement of Operations. For the period ended August 31, 2024, each fund’s purchases and sales of securities with other funds in the Fund Complex as well as any realized gains (losses) 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. Small-Cap ETF | | | |
Schwab U.S. Dividend Equity ETF | | | |
114
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Financial Notes (continued)
4. Affiliates and Affiliated Transactions (continued):
Interfund Borrowing and Lending
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. 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. The interfund lending facility is subject to the oversight and periodic review by the Board. The funds had no interfund borrowing or lending activity during the period.
The Board may include people who are officers and/or directors of the investment adviser 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 funds did not pay any interested persons or non-interested persons (independent trustees). The independent trustees are paid by the investment adviser.
During the period, the funds were participants with other funds in the Fund Complex in a joint, syndicated, committed $1 billion line of credit (the Syndicated Credit Facility), which matured on September 28, 2023. On September 28, 2023, the Syndicated Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on September 26, 2024. Under the terms of the Syndicated Credit Facility, in addition to the investment adviser paying the interest charged on any borrowings by a fund, the investment adviser paid a commitment fee of 0.15% per annum on the funds’ proportionate share of the unused portion of the Syndicated Credit Facility.
During the period, the funds were participants with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, which matured on September 28, 2023. On September 28, 2023, the Uncommitted Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on September 26, 2024. Under the terms of the Uncommitted Credit Facility, the investment adviser pays interest on the amount a fund borrows. There were no borrowings by any of the funds from either line of credit during the period.
The funds also have access to custodian overdraft facilities. A fund may have utilized the overdraft facility and incurred an interest expense, which is paid by the investment adviser. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
Certain funds entered into futures contracts during the report period to equitize available cash. 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.
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
115
Financial Notes (continued)
7. Derivatives (continued):
As of August 31, 2024, the Statement of Assets and Liabilities included the following financial derivative instrument fair values held at period end:
| | |
| | |
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. Small-Cap ETF | | |
| | |
Schwab U.S. Dividend Equity ETF | | |
| | |
| |
| Includes cumulative unrealized appreciation of futures contracts as reported in the fund’s Portfolio Holdings. Only current day’s variation margin on futures contracts is reported in the Statement of Assets and Liabilities. |
The effects of the derivative contracts in the Statement of Operations for the period ended August 31, 2024, were:
| | |
Net Realized Gains (Losses) | | |
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. Small-Cap ETF | | |
| | |
Schwab U.S. Dividend Equity ETF | | |
| | |
| |
| Statement of Operations location: Net realized gains (losses) on futures contracts. |
116
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Financial Notes (continued)
7. Derivatives (continued):
Net Change in Unrealized Appreciation (Depreciation) | | |
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. Small-Cap ETF | | |
| | |
Schwab U.S. Dividend Equity ETF | | |
| | |
| |
| Statement of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts. |
During the period ended August 31, 2024, the month-end average notional amounts of futures contracts held by the funds and the month-end average number of contracts held 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. Small-Cap ETF | | |
Schwab U.S. Dividend Equity ETF | | |
8. Purchases and Sales of Investment Securities:For the period ended August 31, 2024, purchases and sales/maturities of securities (excluding in-kind transactions and short-term obligations) 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. Small-Cap ETF | | |
Schwab U.S. Dividend Equity ETF | | |
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
117
Financial Notes (continued)
9. In-Kind Transactions:
The consideration for the purchase of Creation Units of a fund often 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. Variable charges paid to the fund generally have no effect on net asset value per share. In addition, purchasers and redeemers of shares in Creation Units are responsible for payment of the costs of transferring securities to or out of the fund. From time to time, the investment adviser 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, 2024, were as follows:
| IN-KIND PURCHASES
OF SECURITIES | IN-KIND SALES
OF SECURITIES |
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. Small-Cap ETF | | |
Schwab U.S. Dividend Equity ETF | | |
For the period ended August 31, 2024, the funds may realize net capital gains or losses resulting from in-kind redemptions of Creation Units. Because such gains or losses are not taxable to the funds and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to capital received from investors at the end of the funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized gains or losses on sales of in-kind redemptions for the period ended August 31, 2024 are disclosed in the funds’ Statements of Operations, if any.
10. Federal Income Taxes:As of August 31, 2024, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
| | GROSS UNREALIZED
APPRECIATION | GROSS UNREALIZED
DEPRECIATION | NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
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. Small-Cap ETF | | | | |
Schwab U.S. Dividend Equity ETF | | | | |
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, the realization for tax purposes of unrealized appreciation on investments in PFICs and the realization for tax purposes of unrealized appreciation or depreciation on futures contracts. The tax cost of the funds’ investments, disclosed above, have been adjusted from their book amounts to reflect these unrealized appreciation or depreciation differences, as applicable.
118
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Financial Notes (continued)
10. Federal Income Taxes (continued):
As of August 31, 2024, the components of distributable earnings on a tax basis were as follows:
| UNDISTRIBUTED
ORDINARY
INCOME | NET UNREALIZED
APPRECIATION
(DEPRECIATION)
ON INVESTMENTS | CAPITAL LOSS
CARRYFORWARDS
AND OTHER LOSSES | |
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. Small-Cap ETF | | | | |
Schwab U.S. Dividend Equity ETF | | | | |
Capital loss carryforwards have no expiration and may be used to offset future realized capital gains for federal income tax purposes. As of August 31, 2024, the funds had capital loss carryforwards available 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. Small-Cap ETF | |
Schwab U.S. Dividend Equity ETF | |
The tax basis components of distributions paid during the current and prior fiscal years were as follows:
| CURRENT FISCAL YEAR END DISTRIBUTIONS | PRIOR FISCAL YEAR END DISTRIBUTIONS |
| | |
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. Small-Cap ETF | | |
Schwab U.S. Dividend Equity ETF | | |
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 reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts in the financial statements. The funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
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.
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
119
Financial Notes (continued)
10. Federal Income Taxes (continued):
As of August 31, 2024, 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 each fund’s Statement of Operations. During the fiscal year ended August 31, 2024, the funds did not incur any interest or penalties.
Effective September 25, 2024, the Board authorized the following share splits for the below funds:
| |
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. Small-Cap ETF | |
Schwab U.S. Dividend Equity ETF | |
| |
| |
These share splits applied to shareholders of record as of the close of U.S. markets on October 9, 2024, and paid after the close of U.S. markets on October 10, 2024. Shares began trading at their post-split price on October 11, 2024. These share splits increased the number of shares outstanding and decreased the NAV per share. The share splits did not change the total market value of a shareholder’s investment. The Financial Highlights, Statement of Assets and Liabilities and Statement of Changes in Net Assets for the funds have been retroactively adjusted for the period ended August 31, 2024 and all prior periods to reflect the above share splits.
Other than the planned changes for the share splits discussed in Note 11,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.
120
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Schwab Strategic Trust and Shareholders of Schwab U.S. Broad Market ETF, Schwab 1000 Index 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:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities, including the portfolio holdings, of Schwab U.S. Broad Market ETF, Schwab 1000 Index ETF, Schwab U.S. Large-Cap ETF, Schwab U.S. Large-Cap Growth ETF, Schwab U.S. Large-Cap Value ETF, Schwab U.S. Mid-Cap ETF, Schwab U.S. Small-Cap ETF, and Schwab U.S. Dividend Equity ETF (the “Funds”), eight of the funds constituting Schwab Strategic Trust, as of August 31, 2024, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2024, and the results of their operations for the year then ended, the changes in 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 are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2024, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
Denver, Colorado
October 17, 2024
We have served as the auditor of one or more investment companies in the Schwab Funds Complex since 2020.
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
121
Investment Advisory Agreement Approval
The Investment Company Act of 1940, as amended (the 1940 Act), requires that the continuation of a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party thereto (the Independent Trustees), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.
The Board of Trustees (the Board or the Trustees, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory agreement (the Agreement) between Schwab Strategic Trust (the Trust) and Charles Schwab Investment Management, Inc. (CSIM) (dba Schwab Asset Management) (the investment adviser) with respect to the existing funds in the Trust, including Schwab U.S. Broad Market ETF, Schwab U.S. Large-Cap ETF, Schwab U.S. Large-Cap Growth ETF, Schwab U.S. Large-Cap Value ETF, Schwab U.S. Mid-Cap ETF, Schwab U.S. Small-Cap ETF, Schwab U.S. Dividend Equity ETF and Schwab 1000 Index ETF (the Funds), and to review certain other agreements pursuant to which the investment adviser provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by the investment adviser, including information about the investment adviser’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. As part of the renewal process, the Independent Trustees’ legal counsel, on behalf of the Independent Trustees, sends an information request letter to the investment adviser seeking certain relevant information. The responses by the investment adviser are provided to the Trustees in the Board materials for their review prior to their meeting, and the Trustees are provided with the opportunity to request any additional materials. The Board also receives data provided by an independent provider of investment company data. This information is in addition to the detailed information about the Funds that the Board reviews during the course of each year, including information that relates to the Funds’ operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. In considering the renewal, the Independent Trustees receive advice from Independent Trustees’ legal counsel, including a memorandum regarding the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees participate in question and answer
sessions with representatives of the investment adviser and meet in executive session outside the presence of Fund management.
The Board, including a majority of the Independent Trustees, considered information specifically relating to the continuance of the Agreement with respect to the Funds at meetings held on May 2, 2024 and June 6, 2024, and approved the renewal of the Agreement with respect to the Funds for an additional one-year term at the meeting on June 6, 2024 called for the purpose of voting on such approval.
The Board’s approval of the continuance of the Agreement with respect to the Funds was based on consideration and evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:
1.
the nature, extent and quality of the services provided to each Fund under the Agreement, including the resources of the investment adviser and its affiliates dedicated to the Funds;
2.
each Fund’s investment performance and how it compared to that of certain other comparable exchange-traded funds and benchmark data;
3.
each Fund’s expenses and how those expenses compared to those of certain other similar exchange-traded funds;
4.
the profitability of the investment adviser and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to each Fund, including both direct and indirect benefits accruing to the investment adviser and its affiliates; and
5.
the extent to which economies of scale would be realized as each Fund grows and whether fee levels in the Agreement reflect those economies of scale for the benefit of Fund investors.
Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided by the investment adviser to the Funds and the resources of the investment adviser and its affiliates dedicated to the Funds. In this regard, the Trustees evaluated, among other things, the investment adviser’s experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by the investment adviser relating to services and support provided with respect to the Funds’ portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, and vendor and risk oversight. The Trustees also considered the investment adviser’s continued investment in its infrastructure, including the investment adviser’s
122
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
technology and use of data, business continuity, cybersecurity, due diligence, risk management processes, and information security programs. The Trustees considered Schwab’s overall financial condition and reputation as a full service brokerage firm, as well as the wide range of products, services and account features that benefit Fund shareholders who are brokerage clients of Schwab. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by the investment adviser to the Funds and the resources of the investment adviser and its affiliates dedicated to the Funds supported renewal of the Agreement with respect to the Funds.
Fund Performance. The Board considered each Fund’s performance in determining whether to renew the Agreement with respect to such Fund. Specifically, the Trustees considered each Fund’s performance relative to a peer category of other exchange-traded funds and applicable indices/benchmarks, in light of total return and the market environment, as well as in consideration of each Fund’s investment style and strategy. As part of this review, the Trustees considered the composition of the peer category, selection criteria and the reputation of the independent provider of investment company data who prepared the peer category analysis. In evaluating the performance of each Fund, the Trustees considered the risk profile for such Fund and such Fund’s demonstrated performance in tracking its benchmark index. The Trustees noted that the Funds had closely tracked their respective indexes in 2023, with all of the Funds performing in their expected performance ranges. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and the investment adviser’s profitability discussed below and also noted that the Board and a designated committee of the Board review performance throughout the year. Although the Schwab U.S. Large-Cap Value ETF and Schwab U.S. Mid-Cap ETF had performance that ranked in the fourth quartile of a relevant peer group for more than one performance period considered, the Board noted that each Fund’s performance peer group included actively managed peers and concluded that other factors relevant to performance supported renewal of the Agreement with respect to each Fund including that the underperformance was attributable, to a significant extent, to investment decisions by the investment adviser that were reasonable and consistent with each Fund’s investment objective and policies. Following such evaluation, the Board concluded, within the context of its full deliberations, that the performance of each Fund, supported renewal of the Agreement with respect to such Fund.
Fund Expenses. With respect to each Fund’s expenses, the Trustees considered the rate of compensation called for by the Agreement and each Fund’s operating expense ratio, in each case in comparison to those of other similar exchange-traded funds, such peer groups and comparisons having been selected and calculated by an independent provider of
investment company data. The investment adviser reported to the Board, and the Board took into account, the risk assumed by the investment adviser in the development of the Funds and provision of services as well as the competitive marketplace for financial products. The Trustees also considered fees charged by the investment adviser to mutual funds and other exchange-traded funds that it manages. The Board evaluated the Funds’ unitary fee through review of comparative information with respect to fees paid by other similar exchange-traded funds tracking U.S. equity indexes. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of each Fund are reasonable and supported renewal of the Agreement with respect to such Fund.
Profitability. The Trustees considered the compensation flowing to the investment adviser and its affiliates, directly or indirectly and reviewed profitability on a pre-tax basis, without regard to distribution expenses. The Trustees reviewed profitability of the investment adviser relating to the Schwab fund complex as a whole, noting the benefits to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain costs across the Funds and other funds in the complex. The Trustees also considered any other benefits derived by the investment adviser from its relationship with the Funds, such as whether, by virtue of its management of the Funds, the investment adviser obtains investment information or other research resources that aid it in providing advisory services to other clients. The Trustees considered whether the compensation and profitability with respect to the Funds under the Agreement and other service agreements were reasonable in light of the quality of all services rendered to the Funds by the investment adviser and its affiliates. The Trustees noted that the investment adviser continues to invest substantial sums in its business in order to provide enhanced research capabilities, services and systems to benefit the Funds. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of the investment adviser with respect to each Fund is reasonable and supported renewal of the Agreement with respect to such Fund.
Economies of Scale. Although the Trustees recognized the difficulty of determining economies of scale with precision, and although the Funds do not have breakpoints in their advisory fees, the Trustees considered the potential existence of any economies of scale by way of the relatively low advisory fee and unitary fee structure of the Funds and whether those are passed along to a Fund’s shareholders through (i) the enhancement of services provided to the Funds in return for fees paid, including through investments by the investment adviser in its infrastructure, including modernizing the investment adviser’s technology and use of data, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence and information security programs, which are designed to provide enhanced services to
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
123
the Funds and their shareholders; and (ii) pricing a fund to scale and keeping overall expenses down as the fund grows. The Trustees acknowledged that the investment adviser has invested in its infrastructure, as discussed above, over time and noted the impact of regulatory and other developments on the investment adviser’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Funds. Based on this evaluation, the Board concluded, within the context of its full deliberations, that each Fund obtains reasonable benefits from economies of scale.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
In the course of their deliberations, the Trustees may have accorded different weights to various factors and did not
identify any particular information or factor that was all important or controlling. Based on the Trustees’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, approved the continuation of the Agreement with respect to the Funds and concluded that the compensation under the Agreement with respect to the Funds is fair and reasonable in light of the services provided and the related expenses borne by the investment adviser and its affiliates and such other matters as the Trustees considered to be relevant in the exercise of their reasonable judgment.
124
Schwab U.S. Equity ETFs | Annual Holdings and Financial Statements
Annual Holdings and Financial Statements | August 31, 2024
Schwab High Yield Bond ETF
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset Management®
Distributor: SEI Investments Distribution Co. (SIDCO)
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
1
Schwab High Yield Bond ETF
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)3 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| Per-Share Data has been retroactively adjusted to reflect a 2-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 10 for additional information). |
| Commencement of operations. |
| Calculated based on the average shares outstanding during the period. |
| |
| Effective September 25, 2023, the annual operating expense ratio was reduced to 0.03%. The ratio presented for the period ended August 31, 2024, is a blended ratio. |
| |
| Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
2
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024
All securities are currently in a fixed rate coupon period based on index eligibility requirements and the fund’s investment objective.Generally, for fixed rate securities, the rate shown is the interest rate that was established when the security was issued. Variable rate securities are subject to index requirements and will be removed from the index and fund prior to converting from a fixed rate coupon to a variable rate coupon. The maturity date shown for all the securities is the final legal maturity.
SECURITY RATE, MATURITY DATE | | |
CORPORATES 98.2% OF NET ASSETS |
|
Financial Institutions 11.3% |
|
|
| | |
| | |
|
| | |
|
| | |
4.20%, 06/01/32 (a)(b)(c) | | |
4.95%, 06/01/42 (a)(b)(c) | | |
|
| | |
|
| | |
Texas Capital Bancshares, Inc. |
| | |
|
5.86%, 06/19/32 (a)(b)(c) | | |
7.30%, 04/02/34 (a)(b)(c) | | |
5.46%, 06/30/35 (a)(b)(c) | | |
|
| | |
|
| | |
| | |
Brokerage/Asset Managers/Exchanges 0.8% |
|
| | |
AG TTMT Escrow Issuer LLC |
| | |
|
| | |
| | |
|
| | |
Brightsphere Investment Group, Inc. |
| | |
|
| | |
| | |
Compass Group Diversified Holdings LLC |
| | |
|
| | |
| | |
|
| | |
Jane Street Group/JSG Finance, Inc. |
| | |
| | |
Jefferies Finance LLC/JFIN Co-Issuer Corp. |
| | |
SECURITY RATE, MATURITY DATE | | |
|
| | |
|
| | |
VFH Parent LLC/Valor Co-Issuer, Inc. |
| | |
| | |
|
Bread Financial Holdings, Inc. |
| | |
Castlelake Aviation Finance DAC |
| | |
|
| | |
Enova International, Inc. |
| | |
Finance of America Funding LLC |
| | |
|
| | |
| | |
| | |
Fortress Transportation & Infrastructure Investors LLC |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
Freedom Mortgage Holdings LLC |
| | |
| | |
|
| | |
| | |
| | |
|
| | |
| | |
|
| | |
| | |
|
| | |
Macquarie Airfinance Holdings Ltd. |
| | |
| | |
| | |
Midcap Financial Issuer Trust |
| | |
Nationstar Mortgage Holdings, Inc. |
| | |
| | |
| | |
| | |
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
3
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Oxford Finance LLC/Oxford Finance Co-Issuer II, Inc. |
| | |
PennyMac Financial Services, Inc. |
| | |
| | |
| | |
| | |
| | |
|
| | |
Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc. |
| | |
| | |
| | |
| | |
|
| | |
| | |
United Wholesale Mortgage LLC |
| | |
| | |
| | |
| | |
|
Burford Capital Global Finance LLC |
| | |
| | |
|
| | |
| | |
Encore Capital Group, Inc. |
| | |
Five Point Operating Co. LP/Five Point Capital Corp. |
10.50%, 01/15/28 (a)(b)(d) | | |
Greystar Real Estate Partners LLC |
| | |
|
| | |
| | |
Icahn Enterprises LP/Icahn Enterprises Finance Corp. |
| | |
| | |
| | |
SECURITY RATE, MATURITY DATE | | |
| | |
| | |
Jefferson Capital Holdings LLC |
| | |
|
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
|
Acrisure LLC/Acrisure Finance, Inc. |
| | |
| | |
| | |
| | |
| | |
Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
|
| | |
Ardonagh Group Finance Ltd. |
| | |
|
| | |
| | |
Baldwin Insurance Group Holdings LLC/Baldwin Insurance Group Holdings Finance |
| | |
BroadStreet Partners, Inc. |
| | |
Constellation Insurance, Inc. |
6.80%, 01/24/30 (a)(b)(d) | | |
|
| | |
|
4.70%, 10/15/51 (a)(b)(c) | | |
7.95%, 10/15/54 (a)(b)(c) | | |
|
| | |
Howden U.K. Refinance PLC/Howden U.K. Refinance 2 PLC/Howden U.S. Refinance LLC |
| | |
| | |
|
| | |
| | |
| | |
Jones Deslauriers Insurance Management, Inc. |
| | |
| | |
4
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
Liberty Mutual Group, Inc. |
| | |
4.13%, 12/15/51 (a)(b)(c) | | |
| | |
|
| | |
| | |
| | |
Panther Escrow Issuer LLC |
| | |
|
| | |
|
| | |
| | |
|
Apollo Commercial Real Estate Finance, Inc. |
| | |
Blackstone Mortgage Trust, Inc. |
| | |
Brandywine Operating Partnership LP |
| | |
| | |
| | |
Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LLC |
| | |
| | |
CTR Partnership LP/CareTrust Capital Corp. |
| | |
Diversified Healthcare Trust |
| | |
| | |
Global Net Lease, Inc./Global Net Lease Operating Partnership LP |
| | |
Hudson Pacific Properties LP |
| | |
| | |
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. |
| | |
| | |
| | |
MPT Operating Partnership LP/MPT Finance Corp. |
| | |
| | |
| | |
| | |
Necessity Retail REIT, Inc./American Finance Operating Partner LP |
| | |
Office Properties Income Trust |
| | |
| | |
Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer |
| | |
| | |
| | |
RHP Hotel Properties LP/RHP Finance Corp. |
| | |
| | |
| | |
|
| | |
| | |
SECURITY RATE, MATURITY DATE | | |
|
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Starwood Property Trust, Inc. |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
|
|
|
Alcoa Nederland Holding BV |
| | |
| | |
| | |
|
| | |
Alliance Resource Operating Partners LP/Alliance Resource Finance Corp. |
| | |
|
| | |
| | |
|
| | |
| | |
ASP Unifrax Holdings, Inc. |
| | |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
Axalta Coating Systems LLC/Axalta Coating Systems Dutch Holding B BV |
| | |
Baffinland Iron Mines Corp./Baffinland Iron Mines LP |
| | |
Big River Steel LLC/BRS Finance Corp. |
| | |
|
| | |
Carpenter Technology Corp. |
| | |
Cascades, Inc./Cascades USA, Inc. |
| | |
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
5
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
|
| | |
|
| | |
|
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
Compass Minerals International, Inc. |
| | |
Consolidated Energy Finance SA |
| | |
| | |
|
| | |
CVR Partners LP/CVR Nitrogen Finance Corp. |
| | |
|
| | |
|
| | |
|
| | |
FMG Resources August 2006 Pty. Ltd. |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
GrafTech Global Enterprises, Inc. |
| | |
Graphic Packaging International LLC |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
|
| | |
|
| | |
| | |
SECURITY RATE, MATURITY DATE | | |
|
| | |
Illuminate Buyer LLC/Illuminate Holdings IV, Inc. |
| | |
|
| | |
Infrabuild Australia Pty. Ltd. |
| | |
|
| | |
|
| | |
JW Aluminum Continuous Cast Co. |
| | |
|
| | |
| | |
|
| | |
|
| | |
|
| | |
Mercer International, Inc. |
| | |
|
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
Minerals Technologies, Inc. |
| | |
|
| | |
|
| | |
| | |
| | |
Nufarm Australia Ltd./Nufarm Americas, Inc. |
| | |
|
| | |
| | |
| | |
Olympus Water U.S. Holding Corp. |
| | |
| | |
| | |
| | |
| | |
Perenti Finance Pty. Ltd. |
| | |
Polar U.S. Borrower LLC/Schenectady International Group, Inc. |
| | |
|
| | |
Rayonier AM Products, Inc. |
| | |
6
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
|
| | |
| | |
SCIL IV LLC/SCIL USA Holdings LLC |
| | |
SK Invictus Intermediate II SARL |
| | |
|
| | |
| | |
|
| | |
|
| | |
|
| | |
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc. |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
Vibrantz Technologies, Inc. |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
|
|
| | |
ACProducts Holdings, Inc. |
| | |
Advanced Drainage Systems, Inc. |
| | |
Alta Equipment Group, Inc. |
| | |
American Builders & Contractors Supply Co., Inc. |
| | |
| | |
AmeriTex HoldCo Intermediate LLC |
| | |
|
| | |
Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC |
| | |
| | |
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. |
| | |
| | |
|
| | |
|
| | |
SECURITY RATE, MATURITY DATE | | |
|
| | |
| | |
| | |
| | |
Beacon Roofing Supply, Inc. |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
Builders FirstSource, Inc. |
| | |
| | |
| | |
| | |
|
| | |
Camelot Return Merger Sub, Inc. |
| | |
|
| | |
| | |
|
| | |
| | |
| | |
Clydesdale Acquisition Holdings, Inc. |
| | |
| | |
Cornerstone Building Brands, Inc. |
| | |
| | |
|
| | |
|
| | |
Crown Americas LLC/Crown Americas Capital Corp. V |
| | |
Crown Americas LLC/Crown Americas Capital Corp. VI |
| | |
Crown Cork & Seal Co., Inc. |
| | |
Eco Material Technologies, Inc. |
| | |
EMRLD Borrower LP/Emerald Co-Issuer, Inc. |
| | |
| | |
|
| | |
|
| | |
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
7
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
|
| | |
|
| | |
| | |
|
| | |
Foundation Building Materials, Inc. |
| | |
|
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
Graham Packaging Co., Inc. |
| | |
|
| | |
|
| | |
H&E Equipment Services, Inc. |
| | |
|
| | |
| | |
Husky Injection Molding Systems Ltd./Titan Co-Borrower LLC |
| | |
Intelligent Packaging Ltd. Finco, Inc./Intelligent Packaging Ltd. Co-Issuer LLC |
| | |
|
| | |
|
| | |
James Hardie International Finance DAC |
| | |
|
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
| | |
|
| | |
SECURITY RATE, MATURITY DATE | | |
|
| | |
Mauser Packaging Solutions Holding Co. |
| | |
| | |
Maxim Crane Works Holdings Capital LLC |
| | |
MIWD Holdco II LLC/MIWD Finance Corp. |
| | |
|
| | |
Mueller Water Products, Inc. |
| | |
|
| | |
New Enterprise Stone & Lime Co., Inc. |
| | |
|
| | |
Oscar AcquisitionCo LLC/Oscar Finance, Inc. |
| | |
|
| | |
Owens-Brockway Glass Container, Inc. |
| | |
| | |
| | |
Pactiv Evergreen Group Issuer LLC/Pactiv Evergreen Group Issuer, Inc. |
| | |
Pactiv Evergreen Group Issuer, Inc./Pactiv Evergreen Group Issuer LLC |
| | |
Park River Holdings, Inc. |
| | |
| | |
|
| | |
PECF USS Intermediate Holding III Corp. |
| | |
|
| | |
| | |
|
| | |
| | |
Ritchie Bros Holdings, Inc. |
| | |
| | |
Roller Bearing Co. of America, Inc. |
| | |
|
| | |
| | |
| | |
| | |
Sealed Air Corp./Sealed Air Corp. U.S. |
| | |
| | |
|
| | |
Smyrna Ready Mix Concrete LLC |
| | |
| | |
8
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
Specialty Building Products Holdings LLC/SBP Finance Corp. |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
Standard Industries, Inc. |
| | |
| | |
| | |
| | |
|
| | |
Summit Materials LLC/Summit Materials Finance Corp. |
| | |
| | |
| | |
|
| | |
Titan International, Inc. |
| | |
TK Elevator U.S. Newco, Inc. |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Trident TPI Holdings, Inc. |
| | |
|
| | |
|
| | |
|
| | |
Trivium Packaging Finance BV |
| | |
| | |
United Rentals North America, Inc. |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Velocity Vehicle Group LLC |
| | |
|
| | |
|
| | |
|
| | |
| | |
| | |
SECURITY RATE, MATURITY DATE | | |
|
| | |
|
| | |
|
| | |
| | |
|
Advantage Sales & Marketing, Inc. |
| | |
Allen Media LLC/Allen Media Co-Issuer, Inc. |
| | |
|
| | |
| | |
| | |
|
| | |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
| | |
Banijay Entertainment SAS |
| | |
Beasley Mezzanine Holdings LLC |
| | |
Block Communications, Inc. |
| | |
British Telecommunications PLC |
4.25%, 11/23/81 (a)(b)(c) | | |
|
| | |
Cablevision Lightpath LLC |
| | |
CCO Holdings LLC/CCO Holdings Capital Corp. |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
Clear Channel Outdoor Holdings, Inc. |
| | |
| | |
| | |
| | |
| | |
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
9
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
|
| | |
Cogent Communications Group LLC |
| | |
| | |
Cogent Communications Group, Inc./Cogent Communications Finance, Inc. |
| | |
Connect Finco SARL/Connect U.S. Finco LLC |
| | |
Consolidated Communications, Inc. |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Cumulus Media New Holdings, Inc. |
| | |
|
| | |
|
| | |
Directv Financing LLC/Directv Financing Co-Obligor, Inc. |
| | |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
Frontier Communications Holdings LLC |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| | |
SECURITY RATE, MATURITY DATE | | |
| | |
| | |
Hughes Satellite Systems Corp. |
| | |
| | |
iHeartCommunications, Inc. |
| | |
| | |
| | |
| | |
|
| | |
| | |
|
| | |
Intelsat Jackson Holdings SA |
| | |
|
| | |
| | |
| | |
| | |
LCPR Senior Secured Financing DAC |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lions Gate Capital Holdings LLC |
| | |
|
| | |
| | |
| | |
McGraw-Hill Education, Inc. |
| | |
| | |
|
| | |
Millicom International Cellular SA |
| | |
|
| | |
| | |
|
| | |
| | |
|
| | |
| | |
| | |
| | |
10
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
Outfront Media Capital LLC/Outfront Media Capital Corp. |
| | |
| | |
| | |
| | |
|
| | |
| | |
|
| | |
Radiate Holdco LLC/Radiate Finance, Inc. |
| | |
| | |
|
| | |
Rogers Communications, Inc. |
5.25%, 03/15/82 (a)(b)(c) | | |
|
| | |
| | |
|
| | |
| | |
|
| | |
| | |
Sinclair Television Group, Inc. |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| | |
| | |
Telecom Italia Capital SA |
| | |
| | |
| | |
Telesat Canada/Telesat LLC |
| | |
| | |
| | |
|
| | |
|
| | |
Uniti Group LP/Uniti Fiber Holdings, Inc./CSL Capital LLC |
| | |
SECURITY RATE, MATURITY DATE | | |
Uniti Group LP/Uniti Group Finance, Inc./CSL Capital LLC |
| | |
| | |
| | |
Univision Communications, Inc. |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
|
| | |
Virgin Media Secured Finance PLC |
| | |
| | |
Virgin Media Vendor Financing Notes IV DAC |
| | |
Vmed O2 U.K. Financing I PLC |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
Windstream Escrow LLC/Windstream Escrow Finance Corp. |
| | |
|
| | |
| | |
| | |
Zayo Group Holdings, Inc. |
| | |
| | |
|
| | |
|
| | |
|
| | |
| | |
|
1011778 BC ULC/New Red Finance, Inc. |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
11
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
Adient Global Holdings Ltd. |
| | |
| | |
| | |
|
| | |
| | |
|
| | |
| | |
| | |
|
| | |
Allied Universal Holdco LLC |
| | |
Allied Universal Holdco LLC/Allied Universal Finance Corp. |
| | |
| | |
Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas Luxco 4 SARL |
| | |
Allison Transmission, Inc. |
| | |
| | |
| | |
AMC Entertainment Holdings, Inc. |
| | |
American Axle & Manufacturing, Inc. |
| | |
| | |
| | |
|
| | |
Anywhere Real Estate Group LLC/Anywhere Co-Issuer Corp. |
| | |
Anywhere Real Estate Group LLC/Realogy Co-Issuer Corp. |
| | |
| | |
|
| | |
| | |
|
| | |
| | |
|
| | |
Asbury Automotive Group, Inc. |
| | |
| | |
| | |
| | |
|
| | |
Ashton Woods USA LLC/Ashton Woods Finance Co. |
| | |
| | |
Aston Martin Capital Holdings Ltd. |
| | |
|
| | |
|
| | |
| | |
| | |
SECURITY RATE, MATURITY DATE | | |
| | |
| | |
| | |
BCPE Empire Holdings, Inc. |
| | |
|
| | |
| | |
| | |
Benteler International AG |
| | |
Bloomin' Brands, Inc./OSI Restaurant Partners LLC |
| | |
|
| | |
| | |
|
| | |
Brinker International, Inc. |
| | |
|
| | |
| | |
| | |
| | |
Brookfield Residential Properties, Inc./Brookfield Residential U.S. LLC |
| | |
| | |
Caesars Entertainment, Inc. |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
Carnival Holdings Bermuda Ltd. |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
Cedar Fair LP/Canada's Wonderland Co./Magnum Management Corp./Millennium Op |
| | |
| | |
| | |
Century Communities, Inc. |
| | |
| | |
Champions Financing, Inc. |
| | |
|
| | |
| | |
12
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
| | |
| | |
|
| | |
| | |
Clarios Global LP/Clarios U.S. Finance Co. |
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
| | |
Cushman & Wakefield U.S. Borrower LLC |
| | |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
Dealer Tire LLC/DT Issuer LLC |
| | |
Dornoch Debt Merger Sub, Inc. |
| | |
Dream Finders Homes, Inc. |
| | |
|
| | |
Evergreen Acqco 1 LP/TVI, Inc. |
| | |
Fertitta Entertainment LLC/Fertitta Entertainment Finance Co., Inc. |
| | |
| | |
|
| | |
|
| | |
| | |
|
| | |
|
| | |
| | |
Garda World Security Corp. |
| | |
| | |
| | |
| | |
Garrett Motion Holdings, Inc./Garrett LX I SARL |
| | |
Genting New York LLC/GENNY Capital, Inc. |
| | |
|
| | |
| | |
Global Auto Holdings Ltd./AAG FH U.K. Ltd. |
| | |
SECURITY RATE, MATURITY DATE | | |
Go Daddy Operating Co. LLC/GD Finance Co., Inc. |
| | |
| | |
Goodyear Tire & Rubber Co. |
| | |
| | |
| | |
| | |
| | |
| | |
GPS Hospitality Holding Co. LLC/GPS Finco, Inc. |
| | |
|
| | |
| | |
|
| | |
|
| | |
|
| | |
| | |
Hilton Domestic Operating Co., Inc. |
| | |
| | |
| | |
| | |
| | |
| | |
Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Escrow, Inc. |
| | |
| | |
| | |
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. |
| | |
International Game Technology PLC |
| | |
| | |
Jacobs Entertainment, Inc. |
| | |
Jaguar Land Rover Automotive PLC |
| | |
| | |
| | |
JB Poindexter & Co., Inc. |
| | |
|
| | |
| | |
| | |
|
| | |
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC |
| | |
|
| | |
| | |
|
| | |
|
| | |
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
13
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
|
| | |
LCM Investments Holdings II LLC |
| | |
| | |
|
| | |
|
| | |
| | |
|
| | |
| | |
|
| | |
| | |
Light & Wonder International, Inc. |
| | |
| | |
| | |
Lindblad Expeditions Holdings, Inc. |
| | |
|
| | |
| | |
| | |
Live Nation Entertainment, Inc. |
| | |
| | |
| | |
| | |
|
| | |
| | |
Macy's Retail Holdings LLC |
| | |
| | |
| | |
| | |
| | |
|
| | |
Marriott Ownership Resorts, Inc. |
| | |
| | |
Match Group Holdings II LLC |
| | |
| | |
| | |
| | |
|
| | |
| | |
Matthews International Corp. |
| | |
Mavis Tire Express Services Topco Corp. |
| | |
Merlin Entertainments Ltd. |
| | |
MGM Resorts International |
| | |
| | |
| | |
SECURITY RATE, MATURITY DATE | | |
|
| | |
| | |
Midwest Gaming Borrower LLC/Midwest Gaming Finance Corp. |
| | |
Mohegan Tribal Gaming Authority |
| | |
|
| | |
|
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
NMG Holding Co., Inc./Neiman Marcus Group LLC |
| | |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
Ontario Gaming GTA LP/OTG Co-Issuer, Inc. |
| | |
Papa John's International, Inc. |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
| | |
Penske Automotive Group, Inc. |
| | |
| | |
PetSmart, Inc./PetSmart Finance Corp. |
| | |
| | |
|
| | |
|
| | |
Premier Entertainment Sub LLC/Premier Entertainment Finance Corp. |
| | |
| | |
Prime Security Services Borrower LLC/Prime Finance, Inc. |
| | |
| | |
| | |
14
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
|
| | |
| | |
| | |
| | |
Raising Cane's Restaurants LLC |
| | |
|
| | |
| | |
6.25%, 04/22/31 (a)(b)(c)(e) | | |
Raptor Acquisition Corp./Raptor Co-Issuer LLC |
| | |
Real Hero Merger Sub 2, Inc. |
| | |
Resorts World Las Vegas LLC/RWLV Capital, Inc. |
| | |
Royal Caribbean Cruises Ltd. |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sally Holdings LLC/Sally Capital, Inc. |
| | |
Scientific Games Holdings LP/Scientific Games U.S. FinCo, Inc. |
| | |
SeaWorld Parks & Entertainment, Inc. |
| | |
Service Corp. International |
| | |
| | |
| | |
| | |
Shea Homes LP/Shea Homes Funding Corp. |
| | |
| | |
|
| | |
Six Flags Entertainment Corp. |
| | |
| | |
Six Flags Entertainment Corp./Six Flags Theme Parks, Inc. |
| | |
Sizzling Platter LLC/Sizzling Platter Finance Corp. |
| | |
|
| | |
| | |
|
| | |
Sotheby's/Bidfair Holdings, Inc. |
| | |
Speedway Motorsports LLC/Speedway Funding II, Inc. |
| | |
|
| | |
| | |
SECURITY RATE, MATURITY DATE | | |
|
| | |
| | |
| | |
|
| | |
|
| | |
Taylor Morrison Communities, Inc. |
| | |
| | |
|
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
Victra Holdings LLC/Victra Finance Corp. |
| | |
|
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
Walgreens Boots Alliance, Inc. |
| | |
| | |
| | |
| | |
| | |
|
| | |
WASH Multifamily Acquisition, Inc. |
| | |
Weekley Homes LLC/Weekley Finance Corp. |
| | |
|
| | |
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
15
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
Wolverine World Wide, Inc. |
| | |
|
| | |
Wyndham Hotels & Resorts, Inc. |
| | |
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. |
| | |
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp. |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
ZF North America Capital, Inc. |
| | |
| | |
| | |
| | |
|
| | |
| | |
Consumer Non-Cyclical 11.7% |
|
| | |
Acadia Healthcare Co., Inc. |
| | |
| | |
|
| | |
|
| | |
|
| | |
| | |
| | |
AHP Health Partners, Inc. |
| | |
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
|
| | |
|
| | |
| | |
|
| | |
| | |
SECURITY RATE, MATURITY DATE | | |
|
| | |
Bausch Health Americas, Inc. |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
C&S Group Enterprises LLC |
| | |
Catalent Pharma Solutions, Inc. |
| | |
| | |
| | |
|
| | |
| | |
| | |
Charles River Laboratories International, Inc. |
| | |
| | |
| | |
Cheplapharm Arzneimittel GmbH |
| | |
Chobani LLC/Chobani Finance Corp., Inc. |
| | |
CHS/Community Health Systems, Inc. |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Concentra Escrow Issuer Corp. |
| | |
|
| | |
Coty, Inc./HFC Prestige Products, Inc./HFC Prestige International U.S. LLC |
| | |
| | |
Darling Ingredients, Inc. |
| | |
| | |
|
| | |
| | |
| | |
16
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
Edgewell Personal Care Co. |
| | |
| | |
Elanco Animal Health, Inc. |
| | |
|
| | |
Emergent BioSolutions, Inc. |
| | |
|
| | |
| | |
| | |
Endo Finance Holdings, Inc. |
| | |
|
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
Heartland Dental LLC/Heartland Dental Finance Corp. |
| | |
Herbalife Nutrition Ltd./HLF Financing, Inc. |
| | |
H-Food Holdings LLC/Hearthside Finance Co., Inc. |
| | |
HLF Financing SARL LLC/Herbalife International, Inc. |
| | |
| | |
|
| | |
| | |
|
| | |
|
| | |
| | |
| | |
|
| | |
|
| | |
KeHE Distributors LLC/KeHE Finance Corp./NextWave Distribution, Inc. |
| | |
Kronos Acquisition Holdings, Inc. |
| | |
| | |
Lamb Weston Holdings, Inc. |
| | |
| | |
| | |
Legacy LifePoint Health LLC |
| | |
|
| | |
| | |
| | |
| | |
SECURITY RATE, MATURITY DATE | | |
MajorDrive Holdings IV LLC |
| | |
Mallinckrodt International Finance SA/Mallinckrodt CB LLC |
| | |
|
| | |
| | |
Medline Borrower LP/Medline Co-Issuer, Inc. |
| | |
ModivCare Escrow Issuer, Inc. |
| | |
MPH Acquisition Holdings LLC |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
Organon & Co./Organon Foreign Debt Co-Issuer BV |
| | |
| | |
| | |
| | |
|
| | |
| | |
P&L Development LLC/PLD Finance Corp. |
| | |
Pediatrix Medical Group, Inc. |
| | |
Performance Food Group, Inc. |
| | |
| | |
Perrigo Finance Unlimited Co. |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
Prime Healthcare Services, Inc. |
| | |
Primo Water Holdings, Inc. |
| | |
|
| | |
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
17
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
|
| | |
| | |
| | |
| | |
|
| | |
|
| | |
Simmons Foods, Inc./Simmons Prepared Foods, Inc./Simmons Pet Food, Inc./Simmons Feed |
| | |
Sotera Health Holdings LLC |
| | |
|
| | |
|
| | |
Surgery Center Holdings, Inc. |
| | |
|
| | |
|
| | |
| | |
Tempur Sealy International, Inc. |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
|
| | |
Triton Water Holdings, Inc. |
| | |
Turning Point Brands, Inc. |
| | |
U.S. Acute Care Solutions LLC |
| | |
|
| | |
| | |
| | |
| | |
United Natural Foods, Inc. |
| | |
|
| | |
| | |
|
| | |
SECURITY RATE, MATURITY DATE | | |
Winnebago Industries, Inc. |
| | |
| | |
|
Aethon United BR LP/Aethon United Finance Corp. |
| | |
AmeriGas Partners LP/AmeriGas Finance Corp. |
| | |
| | |
| | |
Antero Midstream Partners LP/Antero Midstream Finance Corp. |
| | |
| | |
| | |
| | |
|
| | |
| | |
Archrock Partners LP/Archrock Partners Finance Corp. |
| | |
| | |
| | |
Ascent Resources Utica Holdings LLC/ARU Finance Corp. |
| | |
| | |
| | |
| | |
|
| | |
| | |
|
| | |
Blue Racer Midstream LLC/Blue Racer Finance Corp. |
| | |
| | |
| | |
Borr IHC Ltd./Borr Finance LLC |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
California Resources Corp. |
| | |
Calumet Specialty Products Partners LP/Calumet Finance Corp. |
| | |
| | |
|
| | |
| | |
| | |
|
| | |
|
| | |
| | |
18
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
|
| | |
| | |
| | |
| | |
CNX Midstream Partners LP |
| | |
|
| | |
| | |
| | |
|
| | |
| | |
CQP Holdco LP/BIP-V Chinook Holdco LLC |
| | |
Crescent Energy Finance LLC |
| | |
| | |
| | |
|
| | |
| | |
Delek Logistics Partners LP/Delek Logistics Finance Corp. |
| | |
| | |
Diamond Foreign Asset Co./Diamond Finance LLC |
| | |
|
| | |
| | |
Encino Acquisition Partners Holdings LLC |
| | |
| | |
|
| | |
|
| | |
| | |
EQM Midstream Partners LP |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ferrellgas LP/Ferrellgas Finance Corp. |
| | |
FTAI Infra Escrow Holdings LLC |
| | |
Genesis Energy LP/Genesis Energy Finance Corp. |
| | |
| | |
| | |
| | |
| | |
|
| | |
SECURITY RATE, MATURITY DATE | | |
Global Partners LP/GLP Finance Corp. |
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| | |
Helix Energy Solutions Group, Inc. |
| | |
Hess Midstream Operations LP |
| | |
| | |
| | |
| | |
| | |
Hilcorp Energy I LP/Hilcorp Finance Co. |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Howard Midstream Energy Partners LLC |
| | |
| | |
Ithaca Energy North Sea PLC |
| | |
|
| | |
|
| | |
|
| | |
| | |
|
| | |
Kraken Oil & Gas Partners LLC |
| | |
Magnolia Oil & Gas Operating LLC/Magnolia Oil & Gas Finance Corp. |
| | |
Martin Midstream Partners LP/Martin Midstream Finance Corp. |
| | |
|
| | |
| | |
|
| | |
Moss Creek Resources Holdings, Inc. |
| | |
|
| | |
| | |
| | |
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
19
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
|
| | |
| | |
| | |
New Fortress Energy, Inc. |
| | |
| | |
| | |
NGL Energy Operating LLC/NGL Energy Finance Corp. |
| | |
| | |
Nine Energy Service, Inc. |
| | |
|
| | |
|
| | |
| | |
Northriver Midstream Finance LP |
| | |
|
| | |
| | |
| | |
| | |
Oceaneering International, Inc. |
| | |
PBF Holding Co. LLC/PBF Finance Corp. |
| | |
| | |
Permian Resources Operating LLC |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
| | |
Rockies Express Pipeline LLC |
| | |
| | |
| | |
|
| | |
Sitio Royalties Operating Partnership LP/Sitio Finance Corp. |
| | |
|
| | |
| | |
| | |
| | |
| | |
Solaris Midstream Holdings LLC |
| | |
South Bow Canadian Infrastructure Holdings Ltd. |
7.63%, 03/01/55 (a)(b)(c) | | |
SECURITY RATE, MATURITY DATE | | |
|
| | |
| | |
| | |
| | |
|
| | |
Strathcona Resources Ltd. |
| | |
Suburban Propane Partners LP/Suburban Energy Finance Corp. |
| | |
| | |
Summit Midstream Holdings LLC |
| | |
|
| | |
| | |
Sunoco LP/Sunoco Finance Corp. |
| | |
| | |
| | |
| | |
| | |
Superior Plus LP/Superior General Partner, Inc. |
| | |
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp. |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
|
| | |
TGNR Intermediate Holdings LLC |
| | |
|
| | |
|
| | |
Transocean Titan Financing Ltd. |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
USA Compression Partners LP/USA Compression Finance Corp. |
| | |
| | |
|
| | |
Venture Global Calcasieu Pass LLC |
| | |
| | |
| | |
| | |
|
| | |
| | |
20
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
| | |
| | |
|
| | |
Weatherford International Ltd. |
| | |
| | |
|
Adtalem Global Education, Inc. |
| | |
|
| | |
Albion Financing 1 SARL/Aggreko Holdings, Inc. |
| | |
|
| | |
|
| | |
| | |
|
| | |
| | |
|
| | |
Brand Industrial Services, Inc. |
| | |
Brundage-Bone Concrete Pumping Holdings, Inc. |
| | |
|
| | |
|
| | |
Global Infrastructure Solutions, Inc. |
| | |
Great Lakes Dredge & Dock Corp. |
| | |
|
| | |
| | |
| | |
Installed Building Products, Inc. |
| | |
|
| | |
Park-Ohio Industries, Inc. |
| | |
|
| | |
| | |
|
| | |
SECURITY RATE, MATURITY DATE | | |
|
| | |
|
| | |
Vericast Corp./Harland Clarke/Checks in the Mail/Valassis Comm/Valassis Direct |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
|
|
| | |
Acuris Finance U.S., Inc./Acuris Finance SARL |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
Castle U.S. Holding Corp. |
| | |
Central Parent LLC/CDK Global II LLC/CDK Financing Co., Inc. |
| | |
Central Parent, Inc./CDK Global, Inc. |
| | |
|
| | |
Clarivate Science Holdings Corp. |
| | |
| | |
Cloud Software Group, Inc. |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
21
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
| | |
| | |
CommScope Technologies LLC |
| | |
Conduent Business Services LLC/Conduent State & Local Solutions, Inc. |
| | |
Consensus Cloud Solutions, Inc. |
| | |
|
| | |
|
| | |
|
| | |
Crowdstrike Holdings, Inc. |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| | |
| | |
| | |
|
| | |
|
| | |
Fortress Intermediate 3, Inc. |
| | |
|
| | |
| | |
|
| | |
|
| | |
Helios Software Holdings, Inc./ION Corporate Solutions Finance SARL |
| | |
|
| | |
Insight Enterprises, Inc. |
| | |
ION Trading Technologies SARL |
| | |
Iron Mountain Information Management Services, Inc. |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
SECURITY RATE, MATURITY DATE | | |
|
| | |
|
| | |
|
| | |
| | |
|
| | |
Newfold Digital Holdings Group, Inc. |
| | |
| | |
|
| | |
|
| | |
| | |
|
| | |
| | |
Paysafe Finance PLC/Paysafe Holdings U.S. Corp. |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| | |
|
| | |
| | |
Science Applications International Corp. |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
Sensata Technologies, Inc. |
| | |
| | |
Shift4 Payments LLC/Shift4 Payments Finance Sub, Inc. |
| | |
|
| | |
| | |
|
| | |
|
| | |
|
| | |
| | |
22
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
|
| | |
|
| | |
Veritas U.S., Inc./Veritas Bermuda Ltd. |
| | |
|
| | |
|
| | |
West Technology Group LLC |
| | |
|
| | |
|
| | |
| | |
|
| | |
| | |
|
| | |
ZoomInfo Technologies LLC/ZoomInfo Finance Corp. |
| | |
| | |
|
|
| | |
|
| | |
|
| | |
| | |
American Airlines, Inc./AAdvantage Loyalty IP Ltd. |
| | |
| | |
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. |
| | |
| | |
| | |
| | |
|
| | |
Cargo Aircraft Management, Inc. |
| | |
|
| | |
First Student Bidco, Inc./First Transit Parent, Inc. |
| | |
|
| | |
|
| | |
|
| | |
| | |
| | |
JetBlue Airways Corp./JetBlue Loyalty LP |
| | |
Railworks Holdings LP/Railworks Rally, Inc. |
| | |
SECURITY RATE, MATURITY DATE | | |
|
| | |
|
| | |
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd. |
| | |
|
| | |
|
| | |
| | |
VistaJet Malta Finance PLC/Vista Management Holding, Inc. |
| | |
| | |
| | |
Watco Cos. LLC/Watco Finance Corp. |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
|
|
|
|
| | |
Algonquin Power & Utilities Corp. |
| | |
Atlantica Sustainable Infrastructure PLC |
| | |
|
| | |
| | |
| | |
| | |
| | |
Clearway Energy Operating LLC |
| | |
| | |
|
| | |
| | |
|
| | |
|
| | |
|
| | |
|
7.63%, 12/15/54 (a)(b)(c) | | |
Leeward Renewable Energy Operations LLC |
| | |
|
| | |
NextEra Energy Operating Partners LP |
| | |
| | |
| | |
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
23
Schwab High Yield Bond ETF
Portfolio Holdings as of August 31, 2024 (continued)
SECURITY RATE, MATURITY DATE | | |
|
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
Pattern Energy Operations LP/Pattern Energy Operations, Inc. |
| | |
|
| | |
| | |
|
| | |
| | |
|
| | |
Terraform Global Operating LP |
| | |
TerraForm Power Operating LLC |
| | |
| | |
|
| | |
|
| | |
| | |
Vistra Operations Co. LLC |
| | |
| | |
| | |
| | |
SECURITY RATE, MATURITY DATE | | |
| | |
| | |
| | |
Total Corporates
(Cost $422,484,294) | |
| | |
Short-Term Investments 0.7% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.24% (f) | | |
Total Short-Term Investments
(Cost $3,136,739) | |
Total Investments in Securities
(Cost $425,621,033) | |
| The effective maturity may be shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or as the result of embedded demand features (puts or calls). |
| 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 $357,518,873 or 81.4% of net assets. |
| Security is in a fixed-rate coupon period. Based on index eligibility requirements and the fund’s investment objective this security will be removed from the index prior to converting to a floating rate security. |
| Step up security that pays an initial coupon rate for a set period and increased coupon rates at one or more preset intervals. Rate shown is as of period end. |
| Perpetual security with no stated maturity date. Maturity date represents next call date. |
| The rate shown is the annualized 7-day yield. |
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
24
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $425,621,033) | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
| Net Asset Value and Shares Outstanding have been retroactively adjusted to reflect a 2-for-1 share split effective after the close of U.S. markets on October 10, 2024 (see financial note 10 for additional information). |
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
25
Schwab High Yield Bond ETF
Statement of Operations
For the period September 1, 2023 through August 31, 2024 |
|
Interest received from securities - unaffiliated issuers | | |
Dividends received from securities - unaffiliated issuers | | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
26
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES1 |
| | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS1 |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| Commencement of operations. |
| For the period ended August 31, 2024, and the prior report period, transactions in fund shares have been retroactively adjusted to reflect a 2-for-1 share split effective after the close of U.S. markets on October 10, 2024. The retroactive adjustment of the share split does not change the transaction in fund shares values (see financial note 10 for additional information). |
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
27
Schwab High Yield Bond ETF
1. Business Structure of the Fund:
Schwab High Yield Bond ETF is a series of Schwab Strategic Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the operational funds in the trust as of the end of the period, including the fund discussed in this report, which is highlighted:
|
Schwab High Yield Bond ETF | |
Schwab U.S. Broad Market ETF | Schwab Short-Term U.S. Treasury ETF |
| Schwab Intermediate-Term U.S. Treasury ETF |
Schwab U.S. Large-Cap ETF | Schwab Long-Term U.S. Treasury ETF |
Schwab U.S. Large-Cap Growth ETF | Schwab U.S. Aggregate Bond ETF |
Schwab U.S. Large-Cap Value ETF | Schwab 1-5 Year Corporate Bond ETF |
| Schwab 5-10 Year Corporate Bond ETF |
Schwab U.S. Small-Cap ETF | Schwab Fundamental U.S. Broad Market ETF |
Schwab U.S. Dividend Equity ETF | Schwab Fundamental U.S. Large Company ETF |
Schwab Municipal Bond ETF | Schwab Fundamental U.S. Small Company ETF |
Schwab International Dividend Equity ETF | Schwab Fundamental International Equity ETF |
Schwab International Equity ETF | Schwab Fundamental International Small Equity ETF |
Schwab International Small-Cap Equity ETF | Schwab Fundamental Emerging Markets Equity ETF |
Schwab Emerging Markets Equity ETF | |
| Schwab Crypto Thematic ETF |
Schwab Ultra-Short Income ETF | |
The fund issues and redeems shares at its net asset value per share (NAV) only in large blocks of shares (Creation Units). These transactions are usually in exchange for a basket of securities and/or an amount of cash. As a practical matter, only institutional investors who have entered into an authorized participant agreement purchase or redeem Creation Units. Except when aggregated in Creation Units, shares of the fund are not redeemable securities.
Individual shares of the fund trade on national securities exchanges and elsewhere during the trading day and can only be bought and sold at market prices throughout the trading day through a broker-dealer. Because fund shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount). A chart showing the frequency at which the fund’s daily closing market price was at a discount or premium to the fund’s NAV can be found at www.schwabassetmanagement.com.
The fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, the fund may also keep certain assets in segregated accounts, as required by securities law. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
The Schwab High Yield Bond ETF’s goal is to track as closely as possible, before fees and expenses, the total return of an index that measures the performance of U.S. dollar denominated below investment grade corporate debt. To pursue its goal, the fund generally invests in securities that are included in the ICE BofA US Cash Pay High Yield Constrained Index.
2. Significant Accounting Policies:The following is a summary of the significant accounting policies the fund uses in its preparation of financial statements. The fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services —Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The fund may invest in mutual funds, which are referred to as "underlying funds". For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports and holdings and financial statements, which are filed in Form N-CSR with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
28
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Financial Notes (continued)
2. Significant Accounting Policies (continued):
(a) Security Valuation
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees (the Board) has designated authority to a Valuation Designee, the fund’s investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the fund’s portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
● Bonds and notes: Fixed income investments are generally valued using an evaluated price at the mid-point of the bid/ask spread provided by an approved, independent pricing service (mid-price). To determine the evaluated mid-price, a pricing service may use a variety of techniques and inputs. Techniques may include, but are not limited to, spread models that calculate an investment-specific price relative to a benchmark or yield curve models that establish a price based on yields of comparable bonds along a range of maturities. Inputs differ by valuation approach and techniques, as appropriate, and examples of inputs may include, but are not limited to, interest rates, market conditions, comparable bonds, market trades, projected cash flows, credit reviews and issuer news.
● Short-term securities (60 days or less to maturity): Securities with remaining maturities of 60 days or less are generally valued at an evaluated price; however, such securities may be valued at their amortized cost if it approximates the security’s fair value.
● Mutual funds: Mutual funds are valued at their respective NAVs.
● Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s 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. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods 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. Due to the subjective and variable nature of fair value pricing, there can be no assurance that the fund could obtain the fair value assigned to the security upon the sale of such security.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the fund discloses the fair value of its investments in a hierarchy that prioritizes the significant inputs to valuation methods 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 it is determined 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 the Valuation Designee’s 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 investments — Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, exchange-traded funds (ETFs) and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held which could be Level 1, Level 2 or Level 3 in the fair value hierarchy.
● 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 forward foreign currency exchange contracts, 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.
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
29
Schwab High Yield Bond ETF
Financial Notes (continued)
2. Significant Accounting Policies (continued):
● Level 3 — significant unobservable inputs (including the Valuation Designee’s 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 readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore a fund’s results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the fund’s investments as of August 31, 2024, are disclosed in the fund’s Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Delayed-Delivery Transactions and When-Issued Securities: The fund may transact in securities on a delayed-delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed-delivery or when-issued basis are identified as such in the fund’s Portfolio Holdings, if any. The fund may receive compensation for interest forgone in the purchase of a delayed-delivery or when-issued security. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract’s terms, or if the issuer does not issue the securities due to political, economic, or other factors. The fund complies with Rule 18f-4 under the 1940 Act, the fund operates as a limited derivatives user, with respect to purchase commitments held within the fund, portfolio securities are no longer required to be segregated as collateral with a value at least equal to the amount of a purchase commitment and the fund’s exposure is monitored under a derivatives risk management program.
(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.
Interest income is recorded as it accrues. If the fund buys a debt security at a discount (less than face value) or a premium (more than face value), it amortizes premiums and accretes discounts from the purchase settlement date up to maturity. The fund then increases (in the case of discounts) or reduces (in the case of premiums) the income it records from the security. Certain securities may be callable (meaning that the issuer has the option to pay it off before its maturity date). The fund amortizes the premium and accretes the discount on each callable security to the security’s maturity date, except when the purchase price is higher than the call price at the security’s call date (in which case the premium is amortized to the call date). Debt securities may be placed on non-accrual status and set to accrue at a rate of interest less than the contractual coupon or have the interest receivable written off when the collection of all or a portion of interest has become doubtful.
Pursuant to the Amended and Restated Advisory Agreement (Advisory Agreement) between the investment adviser and the trust, the investment adviser will pay the operating expenses of the fund, excluding taxes, any brokerage expenses, and extraordinary or non-routine expenses. Taxes, any brokerage expenses and extraordinary or non-routine expenses that are specific to the fund are charged directly to the fund. The Advisory Agreement excludes paying acquired fund fees and expenses, which are indirect expenses incurred by a fund through its investments in underlying funds.
(f) Distributions to Shareholders:
The fund makes distributions from net investment income, if any, monthly and from net realized capital gains, if any, once a year. To receive a distribution, you must be a registered shareholder on the record date. Distributions are paid to shareholders on the payable date.
30
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Financial Notes (continued)
2. Significant Accounting Policies (continued):
(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 fund intends to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the fund distributes substantially all of its net investment income and net realized capital gains, if any, to its respective shareholders each year. As long as the fund meets the tax requirements, it is not required to pay federal income tax.
Under the fund’s organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business the fund enters into contracts with its vendors and others that provide general indemnifications. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the fund. However, based on experience, the fund expects the risk of loss attributable to these arrangements to be remote.
Investing in the fund may involve certain risks, as discussed in the fund’s prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in the fund will fluctuate, which means that an investor could lose money over short or long periods.
Investment Style Risk. The fund is an index fund. Therefore, the fund follows the securities included in the index during upturns as well as downturns. Because of its indexing strategy, the fund does not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of the fund’s expenses, the fund’s performance may be below that of the index. Errors relating to the index may occur from time to time and may not be identified by the index provider for a period of time. In addition, market disruptions could cause delays in the index’s rebalancing schedule. Such errors and/or market disruptions may result in losses for the fund.
Interest Rate Risk. Interest rates rise and fall over time. As with any investment whose yield reflects current interest rates, the fund’s yield will change over time. During periods when interest rates are low, the fund’s yield (and total return) also may be low. Changes in interest rates also may affect the fund’s share price: a rise in interest rates generally causes the fund’s share price to fall. The longer the fund’s portfolio duration, the more sensitive to interest rate movements its share price is likely to be. Also, a change in a central bank’s monetary policy or economic conditions, among other things, may result in a change in interest rates, which could have sudden and unpredictable effects on the markets and significantly impact the value of fixed-income securities in which the fund invests. A sudden or unpredictable rise in interest rates may cause volatility and the value of fixed-income securities to decline.
Credit Risk. A decline in the credit quality of an issuer, guarantor or liquidity provider of a portfolio investment or a counterparty could cause the fund to lose money or underperform. The fund could lose money if, due to a decline in credit quality, the issuer, guarantor or liquidity provider of a portfolio investment or a counterparty fails to make, or is perceived as being unable or unwilling to make, timely principal or interest payments or otherwise honor its obligations.
High-Yield Risk. High-yield securities and unrated securities of similar credit quality (junk bonds) are subject to greater levels of credit and liquidity risks, and may be more volatile than higher-rated securities. High-yield securities are considered predominately speculative with respect to the issuer’s continuing ability to make principal and interest payments.
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
31
Schwab High Yield Bond ETF
Financial Notes (continued)
3. Risk Factors (continued):
Sampling Index Tracking Risk. The fund may not fully replicate the index and may hold securities not included in the index. As a result, the 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 the fund utilizes a sampling approach it may not track the return of the index as well as it would if the fund purchased all of the securities in the index.
Tracking Error Risk. As an index fund, the fund seeks to track the performance of the index, although it may not be successful in doing so. The divergence between the performance of the fund and the index, positive or negative, is called “tracking error.” Tracking error can be caused by many factors and it may be significant.
Non-U.S. Issuer Risk. The fund may invest in U.S.-registered, dollar-denominated bonds of non-U.S. corporations. The fund’s investments in bonds of non-U.S. 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; 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 be heightened in connection with bonds issued by non-U.S. corporations and entities in emerging markets.
Privately Issued Securities Risk. Privately issued securities, including those purchased pursuant to Rule 144A under the Securities Act of 1933, as amended (the 1933 Act), are generally not traded on established markets. Privately issued securities carry the risk that the liquidity of these securities may become impaired, making it more difficult for the fund to sell these bonds. Delay or difficulty in selling such securities may result in a loss to the fund.
Portfolio Turnover Risk. The fund may engage in frequent trading of its portfolio securities in connection with its tracking of the index or in response to market conditions. A higher portfolio turnover rate may result in increased transaction costs, which may lower the fund’s performance. A higher portfolio turnover rate can also result in an increase in taxable capital gains distributions to the fund’s shareholders.
Prepayment and Extension Risk. Certain fixed-income securities are subject to the risk that the securities may be paid off earlier or later than expected, especially during periods of falling or rising interest rates, respectively. Prepayments of obligations could cause the fund to forgo future interest income on the portion of the security’s principal repaid early and force the fund to reinvest that money at the lower prevailing interest rates. Extensions of obligations could cause the fund to exhibit additional volatility and hold securities paying lower-than-market rates of interest. Either case could hurt the fund’s performance.
Derivatives Risk. The fund may invest in derivative instruments. The principal types of derivatives used by the fund are futures contracts. A futures contract is an agreement to buy or sell a financial instrument at a specific price on a specific day. The fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as market risk, credit risk and liquidity risk, are discussed elsewhere in this section. The fund’s use of derivatives is also subject to lack of availability risk, valuation risk, correlation risk and tax risk. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause the fund to realize higher amounts of short-term capital gains. 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. The fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that the fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract. 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. The fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the fund may have to sell them at a loss.
Securities Lending Risk. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
Concentration Risk. To the extent that the fund’s or the index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector or asset class, the fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more vulnerable to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector or asset class.
32
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Financial Notes (continued)
3. Risk Factors (continued):
Market Trading Risk. Although fund shares are listed on national securities exchanges, there can be no assurance that an active trading market for fund shares will develop or be maintained. If an active market is not maintained, investors may find it difficult to buy or sell fund shares.
Shares of the Fund May Trade at Prices Other Than NAV. Fund shares may be bought and sold in the secondary market at market prices. Although it is expected that the market price of the shares of the fund will approximate the fund’s NAV, there may be times when the market price and the NAV vary significantly. An investor may pay more than NAV when buying shares of the fund in the secondary market, and an investor may receive less than NAV when selling those shares in the secondary market. The market price of fund shares may deviate, sometimes significantly, from NAV during periods of market volatility or market disruption.
Please refer to the fund’s prospectus for a more complete description of the principal risks of investing in the fund.
4. Affiliates and Affiliated Transactions:Charles Schwab Investment Management, Inc., dba Schwab Asset Management, a wholly owned subsidiary of The Charles Schwab Corporation, serves as the fund’s investment adviser pursuant to the Advisory Agreement between the investment adviser and the trust.
For its advisory services to the fund, the investment adviser is entitled to receive an annual management fee, payable monthly, equal to 0.03% of the fund’s average daily net assets. Prior to September 25, 2023 the management fee for the fund was 0.10%.For the period ended August 31, 2024 the aggregate net advisory fee paid to the investment adviser was 0.03% (annualized) for the fund, as a percentage of the fund’s average daily net assets.
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the SEC, the fund may enter into interfund borrowing and lending transactions with other funds in the Fund Complex. 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. The interfund lending facility is subject to the oversight and periodic review of the Board. The fund had no interfund borrowing or lending activity during the period.
The Board may include people who are officers and/or directors of the investment adviser 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 fund did not pay any interested persons or non-interested persons (independent trustees). The independent trustees are paid by the investment adviser.
During the period, the fund was a participant with other funds in the Fund Complex in a joint syndicated, committed $1 billion line of credit (the Syndicated Credit Facility), which matured on September 28, 2023. On September 28, 2023, the Syndicated Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on September 26, 2024. Under the terms of the Syndicated Credit Facility, in addition to the investment adviser paying the interest charged on any borrowings by the fund, the investment adviser paid a commitment fee of 0.15% per annum on the fund’s proportionate share of the unused portion of the Syndicated Credit Facility.
During the period, the fund was a participant with other funds in the Fund Complex, in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, which matured on September 28, 2023. On September 28, 2023, the Uncommitted Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on September 26, 2024. Under the terms of the Uncommitted Credit Facility, the investment adviser pays interest on the amount the fund borrows. There were no borrowings by the fund from either line of credit during the period.
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
33
Schwab High Yield Bond ETF
Financial Notes (continued)
6. Borrowing from Banks (continued):
The fund also has access to custodian overdraft facilities. The fund may have utilized the overdraft facility and incurred an interest expense, which is paid by the investment adviser. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
7. Purchases and Sales/Maturities of Investment Securities:For the period ended August 31, 2024, purchases and sales/maturities of securities (excluding in-kind transactions and short-term obligations) were as follows:
| SALES/MATURITIES
OF SECURITIES |
| |
The consideration for the purchase of Creation Units of the fund often consists of the in-kind deposit of a designated portfolio of fixed-income 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. Variable charges paid to the fund generally have no effect on net asset value per share. In addition, purchasers and redeemers of shares in Creation Units are responsible for payment of the costs of transferring securities to or out of the fund. From time to time, the investment adviser may cover the cost of any transaction fees when believed to be in the best interests of the fund.
The in-kind transactions for the period ended August 31, 2024, were as follows:
IN-KIND PURCHASES
OF SECURITIES | IN-KIND SALES
OF SECURITIES |
| |
For the period ended August 31, 2024, the fund may realize net capital gains or losses resulting from in-kind redemptions of Creation Units. Because such gains or losses are not taxable to the fund and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to capital received from investors at the end of the fund’s tax year. These reclassifications have no effect on net assets or net asset value per share. The net realized gains or losses on sales of in-kind redemptions for the period ended August 31, 2024, are disclosed in the fund’s Statement of Operations, if any.
As of August 31, 2024, the tax basis cost of the fund’s investments and gross unrealized appreciation and depreciation were as follows:
| | GROSS UNREALIZED
APPRECIATION | GROSS UNREALIZED
DEPRECIATION | NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
| | | | |
| | | | |
| | | | |
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. The tax cost of the fund’s investments, disclosed above, have been adjusted from its book amounts to reflect these unrealized appreciation or depreciation differences, as applicable.
34
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Financial Notes (continued)
9. Federal Income Taxes (continued):
As of August 31, 2024, the components of distributable earnings on a tax basis were as follows:
UNDISTRIBUTED
ORDINARY
INCOME | NET UNREALIZED
APPRECIATION
(DEPRECIATION)
ON INVESTMENTS | CAPITAL LOSS
CARRYFORWARDS AND OTHER LOSSES | |
| | | |
Capital loss carryforwards have no expiration and may be used to offset future realized capital gains for federal income tax purposes. As of August 31, 2024, the fund had capital loss carryforwards of $290,593.
The tax basis components of distributions paid during the current and prior fiscal years were as follows:
Current fiscal year ended distributions | |
| |
Prior fiscal year ended distributions | |
| |
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 reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts in the financial statements. The fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
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, 2024, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the fund, and has determined that no provision for income tax is required in the fund’s financial statements. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the fund’s Statement of Operations. During the period ended August 31, 2024, the fund did not incur any interest or penalties.
Effective September 25, 2024, the Board authorized a 2-for-1 share split for the fund, which applied to shareholders of record as of the close of U.S. markets on October 9, 2024, and paid after the close of U.S. markets on October 10, 2024. Shares began trading at their post-split price on October 11, 2024. The share split did not change the total market value of a shareholder’s investment. The Financial Highlights, Statement of Assets and Liabilities and Statement of Changes in Net Assets for the fund have been retroactively adjusted for the period ended August 31, 2024 and all prior periods to reflect the share split.
Other than the planned changes for the share split discussed in Note 10, 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.
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
35
Schwab High Yield Bond ETF
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Schwab Strategic Trust and Shareholders of Schwab High Yield Bond ETF:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the portfolio holdings, of Schwab High Yield Bond ETF (the “Fund”), one of the funds constituting Schwab Strategic Trust, as of August 31, 2024, the related statement of operations for the year then ended, the statements of changes in net assets and the financial highlights for the year in the period then ended and for the period from July 11, 2023 (commencement of operations) through August 31, 2023, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of August 31, 2024, and the results of its operations for the year then ended, the changes in its net assets and the financial highlights for the year then ended and for the period from July 11, 2023 (commencement of operations) through August 31, 2023 in conformity with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2024, by correspondence with the custodian and brokers. We believe that our audit provides a reasonable basis for our opinion.
Deloitte & Touche LLP
Denver, Colorado
October 17, 2024
We have served as the auditor of one or more investment companies in the Schwab Funds Complex since 2020.
36
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Schwab High Yield Bond ETF
Investment Advisory Agreement Approval
The Investment Company Act of 1940, as amended (the 1940 Act), requires that the continuation of a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party thereto (the Independent Trustees), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.
The Board of Trustees (the Board or the Trustees, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory agreement (the Agreement) between Schwab Strategic Trust (the Trust) and Charles Schwab Investment Management, Inc. (CSIM) (dba Schwab Asset Management) (the investment adviser) with respect to the existing funds in the Trust, including Schwab High Yield Bond ETF (the Fund), and to review certain other agreements pursuant to which the investment adviser provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by the investment adviser, including information about the investment adviser’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. As part of the renewal process, the Independent Trustees’ legal counsel, on behalf of the Independent Trustees, sends an information request letter to the investment adviser seeking certain relevant information. The responses by the investment adviser are provided to the Trustees in the Board materials for their review prior to their meeting, and the Trustees are provided with the opportunity to request any additional materials. The Board also receives data provided by an independent provider of investment company data. This information is in addition to the detailed information about the Fund that the Board reviews during the course of each year, including information that relates to the Fund’s operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. In considering the renewal, the Independent Trustees receive advice from Independent Trustees’ legal counsel, including a memorandum regarding the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees participate in question and answer sessions with representatives of the investment adviser and meet in executive session outside the presence of Fund management.
The Board, including a majority of the Independent Trustees, considered information specifically relating to the continuance of the Agreement with respect to the Fund at meetings held on May 2, 2024 and June 6, 2024, and approved the renewal of the Agreement with respect to the Fund for an additional one-year term at the meeting on June 6, 2024 called for the purpose of voting on such approval.
The Board’s approval of the continuance of the Agreement with respect to the Fund was based on consideration and evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:
1.
the nature, extent and quality of the services provided to the Fund under the Agreement, including the resources of the investment adviser and its affiliates dedicated to the Fund;
2.
the Fund’s limited investment performance and how it compared to that of certain other comparable exchange-traded funds and benchmark data;
3.
the Fund’s expenses and how those expenses compared to those of certain other similar exchange-traded funds;
4.
the profitability of the investment adviser and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to the Fund, including both direct and indirect benefits accruing to the investment adviser and its affiliates; and
5.
the extent to which economies of scale would be realized as the Fund grows and whether fee levels in the Agreement reflect those economies of scale for the benefit of Fund investors.
Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided by the investment adviser to the Fund and the resources of the investment adviser and its affiliates dedicated to the Fund. In this regard, the Trustees evaluated, among other things, the investment adviser’s experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by the investment adviser relating to services and support provided with respect to the Fund’s portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, and vendor and risk oversight. The Trustees also considered the investment adviser’s continued investment in its infrastructure, including the investment adviser’s technology and use of data, business continuity, cybersecurity, due diligence, risk management processes, and information security programs. The Trustees also considered Schwab’s
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
37
Schwab High Yield Bond ETF
overall financial condition and reputation as a full service brokerage firm, as well as the wide range of products, services and account features that benefit Fund shareholders who are brokerage clients of Schwab. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by the investment adviser to the Fund and the resources of the investment adviser and its affiliates dedicated to the Fund supported renewal of the Agreement with respect to the Fund.
Fund Performance. The Board considered that the Fund commenced investment operations on July 11, 2023 and therefore had less than one year of performance history available.
Fund Expenses. With respect to the Fund’s expenses, the Trustees considered the rate of compensation called for by the Agreement and the Fund’s operating expense ratio, in each case, in comparison to those of other similar exchange-traded funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. The investment adviser reported to the Board, and the Board took into account, the risk assumed by the investment adviser in the development of the Fund and provision of services as well as the competitive marketplace for financial products. The Trustees also considered fees charged by the investment adviser to mutual funds and other exchange-traded funds that it manages. The Board evaluated the Fund’s unitary fee through review of comparative information with respect to fees paid by other similar exchange-traded funds tracking U.S. dollar denominated below investment grade corporate debt indexes. The Board also noted that, at a meeting held on September 20, 2023, it had approved an amendment to the Agreement to reflect a reduction to the advisory fee paid by the Fund to CSIM. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the Fund are reasonable and supported renewal of the Agreement with respect to the Fund.
Profitability. Although the Fund had a limited operating history, the Trustees considered the compensation flowing to the investment adviser and its affiliates, directly or indirectly and reviewed profitability on a pre-tax basis, without regard to distribution expenses. The Trustees reviewed profitability of the investment adviser relating to the Schwab fund complex as a whole, noting the benefits to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain costs across the Fund and other funds in the complex. The Trustees also considered any other benefits derived by the investment adviser from its relationship with the Fund, such as whether, by virtue of its management of the Fund, the investment adviser obtains investment information or other research resources that aid it in providing advisory services to
other clients. The Trustees considered whether the compensation and profitability with respect to the Fund under the Agreement and other service agreements were reasonable in light of the quality of all services rendered to the Fund by the investment adviser and its affiliates. The Trustees noted that the investment adviser continues to invest substantial sums in its business in order to provide enhanced research capabilities, services and systems to benefit the Fund. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of the investment adviser is reasonable and supported renewal of the Agreement with respect to the Fund.
Economies of Scale. Although the Trustees recognized the difficulty of determining economies of scale with precision, and although the Fund does not have breakpoints in its advisory fee, the Trustees considered the potential existence of any economies of scale by way of the relatively low advisory fee and unitary fee structure of the Fund and whether those are passed along to the Fund’s shareholders through (i) the enhancement of services provided to the Fund in return for fees paid, including through investments by the investment adviser in its infrastructure, including modernizing the investment adviser’s technology and use of data, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence and information security programs, which are designed to provide enhanced services to the Fund and its shareholders; and (ii) pricing a fund to scale and keeping overall expenses down as the fund grows. The Trustees acknowledged that the investment adviser has invested in its infrastructure, as discussed above, over time and noted the impact of regulatory and other developments on the investment adviser’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Fund. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the Fund obtains reasonable benefits from economies of scale.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
In the course of their deliberations, the Trustees may have accorded different weights to various factors and did not identify any particular information or factor that was all important or controlling. Based on the Trustees’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, approved the continuation of the Agreement with respect to the Fund and concluded that the compensation under the Agreement with respect to the Fund is fair and reasonable in light of the services provided and the related expenses borne by the investment adviser and its affiliates and such other matters as the Trustees considered to be relevant in the exercise of their reasonable judgment.
38
Schwab High Yield Bond ETF | Annual Holdings and Financial Statements
Item 8: Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9: Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10: Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
The remuneration paid to directors, officers and others are included as part of the report to shareholders filed under Item 7 of this Form.
Item 11: Statement Regarding Basis for Approval of Investment Advisory Contract.
The statement regarding basis for approval of investment advisory contract is included as part of the report to shareholders filed under Item 7 of this Form.
Item 12: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 14: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 16: 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, Omar Aguilar and Registrant’s Chief Financial Officer, Dana Smith, 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 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 17: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 18: Recovery of Erroneously Awarded Compensation.
(a) Not applicable.
(b) Not applicable
Item 19: Exhibits.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Schwab Strategic Trust – Schwab U.S. Equity ETFs, Schwab International Equity ETFs and Schwab High Yield Bond ETF
| | |
| By: | | /s/ Omar Aguilar |
| | Omar Aguilar Principal Executive Officer (Chief Executive Officer) |
| |
| Date: | | October 17, 2024 |
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/ Omar Aguilar |
| | Omar Aguilar Principal Executive Officer (Chief Executive Officer) |
| |
| Date: | | October 17, 2024 |
| |
| By: | | /s/ Dana Smith |
| | Dana Smith Principal Financial Officer (Chief Financial Officer) |
| |
| Date: | | October 17, 2024 |
