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. REIT ETF
and Schwab Fundamental Index ETFs
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Schwab Strategic Trust – Schwab U.S. REIT ETF and Schwab Fundamental Index ETFs
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: February 28
Date of reporting period: August 31, 2024
Item 1: Report(s) to Shareholders.
Schwab U.S. REIT ETF
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This
semiannual shareholder report
contains important information about the fund for the period of March 1, 2024, 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
shar
eholders
and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST six months ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
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.
information current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
Average Annual Total Returns
| | | | |
Fund: Schwab U.S. REIT ETF (01/13/2011) |
| | | | |
| | | | |
| | | | |
Dow Jones Equity All REIT Capped Index 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.
Small-company stocks may be subject to greater volatility than many other asset classes.
The fund is subject to risks associated with the direct ownership of real estate securities, and an investment in the fund will be closely linked to the performance of the real
estate markets.
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 Equity All REIT Capped Index (the Index) is a
product of S&P Dow Jones Indices LLC, and the trademark and Index have been licensed for use by Charles Schwab Investment Management, Inc. The Schwab U.S. REIT ETF
is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, or any of their respective affiliates and neither S&P Dow Jones Indices LLC, Dow
Jones, nor any of their respective affiliates make any representation regarding the advisability of investing in such product.
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 Equity All REIT Capped 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 Equity All REIT Capped Index. The
fund does not seek to track the regulatory index.
The inception date of the Dow Jones Equity All REIT Capped Index is April 13, 2020. The fund began tracking the index on June 22, 2020.
An internally calculated index, comprised of the Dow Jones U.S. Select REIT Index from inception of the Schwab U.S. REIT ETF until the close of business on June 19, 2020,
and the Dow Jones Equity All REIT Capped Index thereafter. The REIT Spliced Index is published with the permission of S&P Dow Jones Indices LLC, but is not calculated,
sponsored or endorsed by S&P Dow Jones Indices LLC.
Schwab
U.S.
REIT
ETF |
Report
| |
| |
(not annualized; excludes in-kind transactions) | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Industry 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.
This list is not a recommendation of any security by the investment adviser.
Schwab U.S. REIT ETF | Semiannual 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 U.S. REIT ETF | Semiannual Report
Schwab Fundamental U.S. Broad Market ETF
(formerly Schwab Fundamental U.S. Broad Market Index ETF)
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This
semiannual shareholder report
contains important information about the fund for the period of March 1, 2024, 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 ho
ld fun
d 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 six months ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab Fundamental U.S. Broad Market ETF | | |
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.
information current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
Average Annual Total Returns
| | | | |
Fund: Schwab Fundamental U.S. Broad Market ETF (08/15/2013) |
| | | | |
| | | | |
| | | | |
RAFI Fundamental High Liquidity US All Index 4 | | | | |
| | | | |
Fundamental US All Spliced Index 5 | | | | |
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 — The RAFI Fundamental High Liquidity US All Index (the Index) is a service mark of RAFI Indices, LLC or its affiliates (collectively, RAFI) and has been licensed
for use by Charles Schwab Investment Management, Inc. The intellectual and other property rights to the Index are owned by or licensed to RAFI. The Schwab Fundamental
U.S. Broad Market ETF is not sponsored, endorsed, sold or promoted by RAFI, its agents or service providers (collectively, the RAFI Parties). The RAFI Parties: (i) make no
representation or warranty as to the results to be obtained from the use of the Index or otherwise; and (ii) shall not be liable (whether in negligence or otherwise) to any
person for any error in the Index. For full disclaimer, please see the fund’s statement of additional information.
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 Russell RAFI™ US Index to the Russell 3000
®
Index. The Russell 3000
®
Index provides a broad measure of market performance. The fund does not seek to track the regulatory index.
Effective June 21, 2024, the fund changed its comparative index from the Russell RAFI™ US Index to the RAFI Fundamental High Liquidity US All Index in connection with a
change to the fund’s investment objective and investment strategy to invest its assets in accordance with the index. The inception date of the RAFI Fundamental High
Liquidity US All Index is January 31, 2024. The fund began tracking the index on June 21, 2024.
The Fundamental US All Spliced Index is an internally calculated index comprised of the Russell RAFI™ US Index from the inception of the fund until the close of business
on June 21, 2024, and the RAFI Fundamental High Liquidity US All Index from June 22, 2024, forward.
Schwab
Fundamental
U.S.
Broad
Market ETF | Semiannual Report
| |
| |
(not annualized; excludes in-kind transactions) | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
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 a
nd i
ts 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 Fundamental U.S. Broad Market ETF | Semiannual 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 Fundamental U.S. Broad Market ETF | Semiannual Report
Schwab Fundamental U.S. Large Company ETF
(formerly Schwab Fundamental U.S. Large Company Index ETF)
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This
semiannual shareholder report
contains important information about the fund for the period of March 1, 2024, 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 ho
ld 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 six months ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab Fundamental U.S. Large Company ETF | | |
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.
information current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
Average Annual Total Returns
| | | | |
Fund: Schwab Fundamental U.S. Large Company ETF (08/15/2013) |
| | | | |
| | | | |
| | | | |
RAFI Fundamental High Liquidity US Large Index 4 | | | | |
Russell RAFI™ US Large Company Index | | | | |
Fundamental US Large Spliced Index 5 | | | | |
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 — The RAFI Fundamental High Liquidity US Large Index (the Index) is a service mark of RAFI Indices, LLC or its affiliates (collectively, RAFI) and has been
licensed for use by Charles Schwab Investment Management, Inc. The intellectual and other property rights to the Index are owned by or licensed to RAFI. The Schwab
Fundamental U.S. Large Company ETF is not sponsored, endorsed, sold or promoted by RAFI, its agents or service providers (collectively, the RAFI Parties). The RAFI Parties: (i)
make no representation or warranty as to the results to be obtained from the use of the Index or otherwise; and (ii) shall not be liable (whether in negligence or otherwise) to
any person for any error in the Index. For full disclaimer, please see the fund’s statement of additional information.
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 Russell RAFI™ US Large Company Index to the Russell 1000
®
Index. The
Russell 1000
®
Index provides a broad measure of market performance. The fund does not seek to track the regulatory index.
Effective June 21, 2024, the fund changed its comparative index from the Russell RAFI™ US Large Company Index to the RAFI Fundamental High Liquidity US Large Index in
connection with a change to the fund’s investment objective and investment strategy to invest its assets in accordance with the index. The inception date of the RAFI
Fundamental High Liquidity US Large Index is January 31, 2024. The fund began tracking the index on June 21, 2024.
The Fundamental US Large Spliced Index is an internally calculated index comprised of the Russell RAFI™ US Large Company Index from the inception of the fund until the
close of business on June 21, 2024, and the RAFI Fundamental High Liquidity US Large Index from June 22, 2024, forward.
Schwab
Fundamental
U.S. Large Company ETF | Semiannual Report
| |
| |
(not annualized; excludes in-kind transactions) | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
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 ex
clus
ive 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 Fundamental U.S. Large Company ETF | Semiannual 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 Fundamental U.S. Large Company ETF | Semiannual Report
Schwab Fundamental U.S. Small Company ETF
(formerly Schwab Fundamental U.S. Small Company Index ETF)
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This
semiannual shareholder report
contains important information about the fund for the period of March 1, 2024, 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 six months ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab Fundamental U.S. Small Company ETF | | |
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.
information current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
Average Annual Total Returns
| | | | |
Fund: Schwab Fundamental U.S. Small Company ETF (08/15/2013) |
| | | | |
| | | | |
| | | | |
RAFI Fundamental High Liquidity US Small Index 4 | | | | |
Russell RAFI™ US Small Company Index | | | | |
Fundamental US Small Spliced Index 5 | | | | |
| | | | |
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 — The RAFI Fundamental High Liquidity US Small Index (the Index) is a service mark of RAFI Indices, LLC or its affiliates (collectively, RAFI) and has been
licensed for use by Charles Schwab Investment Management, Inc. The intellectual and other property rights to the Index are owned by or licensed to RAFI. The Schwab
Fundamental U.S. Small Company ETF is not sponsored, endorsed, sold or promoted by RAFI, its agents or service providers (collectively, the RAFI Parties). The RAFI
Parties: (i) make no representation or warranty as to the results to be obtained from the use of the Index or otherwise; and (ii) shall not be liable (whether in negligence or
otherwise) to any person for any error in the Index. For full disclaimer, please see the fund’s statement of additional information.
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 Russell RAFI™ US Small Company Index to the S&P 500
®
Index. The S&P
500
®
Index provides a broad measure of market performance. The fund does not seek to track the regulatory index.
Effective June 21, 2024, the fund changed its comparative index from the Russell RAFI™ US Small Company Index to the RAFI Fundamental High Liquidity US Small Index in
connection with a change to the fund’s investment objective and investment strategy to invest its assets in accordance with the index. The inception date of the RAFI
Fundamental High Liquidity US Small Index is January 31, 2024. The fund began tracking the index on June 21, 2024.
The Fundamental US Small Spliced Index is an internally calculated index comprised of the Russell RAFI™ US Small Company Index from the inception of the fund until the
close of business on June 21, 2024, and the RAFI Fundamental High Liquidity US Small Index from June 22, 2024, forward.
Schwab Fundamental U.S. Small
Company
ETF |
Semiannual
Report
| |
| |
(not annualized; excludes in-kind transactions) | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
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
a
nd 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 Fundamental U.S. Small Company ETF | Semiannual 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 Fundamental U.S. Small Company ETF | Semiannual Report
Schwab Fundamental International Equity ETF
(formerly Schwab Fundamental International Large Company Index ETF)
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This
semiannual shareholder report
contains important information about the fund for the period of March 1, 2024, 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 six months ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab Fundamental International Equity ETF | | |
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.
information current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
Average Annual Total Returns
| | | | |
Fund: Schwab Fundamental International Equity ETF (08/15/2013) |
| | | | |
| | | | |
| | | | |
RAFI Fundamental High Liquidity Developed ex US Large Index (Net) 4,6 | | | | |
Russell RAFI™ Developed ex US Large Company Index (Net) 4 | | | | |
Fundamental Developed ex US Large Spliced Index 4,7 | | | | |
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 — The RAFI Fundamental High Liquidity Developed ex US Large Index (the Index) is a service mark of RAFI Indices, LLC or its affiliates (collectively, RAFI) and
has been licensed for use by Charles Schwab Investment Management, Inc. The intellectual and other property rights to the Index are owned by or licensed to RAFI. The
Schwab Fundamental International Equity ETF is not sponsored, endorsed, sold or promoted by RAFI, its agents or service providers (collectively, the RAFI Parties). The RAFI
Parties: (i) make no representation or warranty as to the results to be obtained from the use of the Index or otherwise; and (ii) shall not be liable (whether in negligence or
otherwise) to any person for any error in the Index. For full disclaimer, please see the fund’s statement of additional information.
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.
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.
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 Russell RAFI™ Developed ex US Large Company Index (Net) to the MSCI
EAFE
®
Index (Net). The MSCI EAFE
®
Index (Net) provides a broad measure of market performance. The fund does not seek to track the regulatory index.
Effective June 21, 2024, the fund changed its comparative index from the Russell RAFI™ Developed ex US Large Company Index (Net) to the RAFI Fundamental High
Liquidity Developed ex US Large Index (Net) in connection with a change to the fund’s investment objective and investment strategy to invest its assets in accordance with
the index. The inception date of the RAFI Fundamental High Liquidity Developed ex US Large Index (Net) is January 31, 2024. The fund began tracking the index on June 21,
2024.
The Fundamental Developed ex US Large Spliced Index is an internally calculated index comprised of the Russell RAFI™ Developed ex US Large Company Index (Net) from
the inception of the fund until the close of business on June 21, 2024, and the RAFI Fundamental High Liquidity Developed ex US Large Index (Net) from June 22, 2024,
forward.
Schwab
Fundamental
International
Equity
ETF
| Semiannual Report
| |
| |
(not annualized; excludes in-kind transactions) | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
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 actu
all
y 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 Fundamental International Equity ETF | Semiannual 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 Fundamental International Equity ETF | Semiannual Report
Schwab Fundamental International Small Equity ETF
(formerly Schwab Fundamental International Small Company Index ETF)
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This
semiannual shareholder report
contains important information about the fund for the period of March 1, 2024, 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 six months ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab Fundamental International Small Equity ETF | | |
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.
information current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
Average Annual Total Returns
| | | | |
Fund: Schwab Fundamental International Small Equity ETF (08/15/2013) |
| | | | |
| | | | |
| | | | |
RAFI Fundamental High Liquidity Developed ex US Small Index (Net) 4,6 | | | | |
Russell RAFI™ Developed ex US Small Company Index (Net) 4 | | | | |
Fundamental Developed ex US Small Spliced Index 4,7 | | | | |
S&P Developed ex-U.S. Small Cap 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 — The RAFI Fundamental High Liquidity Developed ex US Small Index (the Index) is a service mark of RAFI Indices, LLC or its affiliates (collectively, RAFI) and
has been licensed for use by Charles Schwab Investment Management, Inc. The intellectual and other property rights to the Index are owned by or licensed to RAFI. The
Schwab Fundamental International Small Equity ETF is not sponsored, endorsed, sold or promoted by RAFI, its agents or service providers (collectively, the RAFI Parties). The
RAFI Parties: (i) make no representation or warranty as to the results to be obtained from the use of the Index or otherwise; and (ii) shall not be liable (whether in negligence
or otherwise) to any person for any error in the Index. For full disclaimer, please see the fund’s statement of additional information.
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.
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.
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 Russell RAFI™ Developed ex US Small Company Index (Net) to the MSCI
EAFE
®
Index (Net). The MSCI EAFE
®
Index (Net) provides a broad measure of market performance. The fund does not seek to track the regulatory index.
Effective June 21, 2024, the fund changed its comparative index from the Russell RAFI™ Developed ex US Small Company Index (Net) to the RAFI Fundamental High
Liquidity Developed ex US Small Index (Net) in connection with a change to the fund’s investment objective and investment strategy to invest its assets in accordance with
the index. The inception date of the RAFI Fundamental High Liquidity Developed ex US Small Index (Net) is January 31, 2024. The fund began tracking the index on June 21,
2024.
The Fundamental Developed ex US Small Spliced Index is an internally calculated index comprised of the Russell RAFI™ Developed ex US Small Company Index (Net) from
the inception of the fund until the close of business on June 21, 2024, and the RAFI Fundamental High Liquidity Developed ex US Small Index (Net) from June 22, 2024,
forward.
Schwab Fundamental International Small Equity ETF | Semiannual Report
| |
| |
(not annualized; excludes in-kind transactions) | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
Country Weightings % of Investments
Portfolio holdings may have changed since the repo
rt d
ate.
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
1
940, as amended.
This list is not a recommendation of any security by the investment adviser.
Schwab Fundamental International Small Equity
ETF
| Semiannual 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 Fundamental International Small Equity ETF | Semiannual Report
Schwab Fundamental Emerging Markets Equity ETF
(formerly Schwab Fundamental Emerging Markets Large Company Index ETF)
Principal U.S. Listing Exchange: NYSE Arca, Inc.
This
semiannual shareholder report
contains important information about the fund for the period of March 1, 2024, 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 in
for
mation about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST six months ENDED August 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab Fundamental Emerging Markets Equity ETF | | |
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.
information current to the most recent month end, please visit
www.schwabassetmanagement.com/prospectus
Average Annual Total Returns
| | | | |
Fund: Schwab Fundamental Emerging Markets Equity ETF (08/15/2013) |
| | | | |
| | | | |
MSCI Emerging Markets Index (Net) 4,5 | | | | |
RAFI Fundamental High Liquidity Emerging Markets Index (Net) 4,6 | | | | |
Russell RAFI™ Emerging Markets Large Company Index (Net) 4 | | | | |
Fundamental Emerging Markets Spliced Index 4,7 | | | | |
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 — The RAFI Fundamental High Liquidity Emerging Markets Index (the Index) is a service mark of RAFI Indices, LLC or its affiliates (collectively, RAFI) and has
been licensed for use by Charles Schwab Investment Management, Inc. The intellectual and other property rights to the Index are owned by or licensed to RAFI. The Schwab
Fundamental Emerging Markets Equity ETF is not sponsored, endorsed, sold or promoted by RAFI, its agents or service providers (collectively, the RAFI Parties). The RAFI
Parties: (i) make no representation or warranty as to the results to be obtained from the use of the Index or otherwise; and (ii) shall not be liable (whether in negligence or
otherwise) to any person for any error in the Index. For full disclaimer, please see the fund’s statement of additional information.
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.
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.
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 Russell RAFI™ Emerging Markets Large Company Index (Net) to the MSCI
Emerging Markets Index (Net). The MSCI Emerging Markets Index (Net) provides a broad measure of market performance. The fund does not seek to track the regulatory
index.
Effective June 21, 2024, the fund changed its comparative index from the Russell RAFI™ Emerging Markets Large Company Index (Net) to the RAFI Fundamental High
Liquidity Emerging Markets Index (Net) in connection with a change to the fund’s investment objective and investment strategy to invest its assets in accordance with the
index. The inception date of the RAFI Fundamental High Liquidity Emerging Markets Index (Net) is January 31, 2024. The fund began tracking the index on June 21, 2024.
The Fundamental Emerging Markets Spliced Index is an internally calculated index comprised of the Russell RAFI™ Emerging Markets Large Company Index (Net) from the
inception of the fund until the close of business on June 21, 2024, and the RAFI Fundamental High Liquidity Emerging Markets Index (Net) from June 22, 2024, forward.
Schwab Fundamental Emerging Markets Equity ETF | Semiannual Report
| |
| |
(not annualized; excludes in-kind transactions) | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Sector Weightings % of Investments
Top Equity Holdings % of Net A
sse
ts
Country Weightings % of Investments
Portfolio holdings may have changed since t
he
report date.
An index is a statistical composite of a specified financial
marke
t 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 mu
tua
l funds registered under the Investment Company Act of 1940, as
am
ended.
This list is not a recommendation of any security by the investment adviser.
Schwab Fundamental Emerging Markets Equity ETF | Semiannual 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 Fundamental Emerging Markets Equity ETF | Semiannual Report
Item 2: Code of Ethics.
Not applicable to this semi-annual report.
Item 3: Audit Committee Financial Expert.
Not applicable to this semi-annual report.
Item 4: Principal Accountant Fees and Services.
Not applicable to this semi-annual report.
Item 5: Audit Committee of Listed Registrants.
Not applicable to this semi-annual report.
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.
Semiannual Holdings and Financial Statements | August 31, 2024
Schwab U.S. REIT 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. REIT ETF | Semiannual Holdings and Financial Statements
1
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 March 10, 2022 (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. |
2
Schwab U.S. REIT ETF | Semiannual Holdings and Financial Statements
Portfolio Holdings as of August 31, 2024 (Unaudited)
| | |
COMMON STOCKS 99.8% OF NET ASSETS |
|
|
Digital Realty Trust, Inc. | | |
| | |
| | |
|
|
Alexander & Baldwin, Inc. | | |
American Assets Trust, Inc. | | |
Armada Hoffler Properties, Inc. | | |
Broadstone Net Lease, Inc. | | |
Empire State Realty Trust, Inc., Class A | | |
Essential Properties Realty Trust, Inc. | | |
| | |
| | |
| | |
|
|
Alexandria Real Estate Equities, Inc. | | |
American Healthcare REIT, Inc. | | |
| | |
Global Medical REIT, Inc. | | |
Healthcare Realty Trust, Inc. | | |
Healthpeak Properties, Inc. | | |
| | |
Medical Properties Trust, Inc. (a) | | |
National Health Investors, Inc. | | |
Omega Healthcare Investors, Inc. | | |
Sabra Health Care REIT, Inc. | | |
| | |
| | |
| | |
|
Hotel & Resort REITs 2.5% |
Apple Hospitality REIT, Inc. | | |
DiamondRock Hospitality Co. | | |
Host Hotels & Resorts, Inc. | | |
Park Hotels & Resorts, Inc. | | |
| | |
| | |
Ryman Hospitality Properties, Inc. | | |
| | |
Summit Hotel Properties, Inc. | | |
Sunstone Hotel Investors, Inc. | | |
Xenia Hotels & Resorts, Inc. | | |
| | |
|
|
Americold Realty Trust, Inc. | | |
EastGroup Properties, Inc. | | |
First Industrial Realty Trust, Inc. | | |
Innovative Industrial Properties, Inc. | | |
| | |
Plymouth Industrial REIT, Inc. | | |
| | |
Rexford Industrial Realty, Inc. | | |
| | |
| | |
| | |
|
| | |
Multi-Family Residential REITs 9.6% |
Apartment Investment & Management Co., Class A * | | |
AvalonBay Communities, Inc. | | |
| | |
| | |
| | |
| | |
Essex Property Trust, Inc. | | |
Independence Realty Trust, Inc. | | |
Mid-America Apartment Communities, Inc. | | |
NexPoint Residential Trust, Inc. | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Easterly Government Properties, Inc. | | |
| | |
Highwoods Properties, Inc. | | |
Hudson Pacific Properties, Inc. | | |
| | |
| | |
NET Lease Office Properties | | |
| | |
Piedmont Office Realty Trust, Inc., Class A | | |
| | |
| | |
| | |
|
Other Specialized REITs 7.5% |
| | |
| | |
Four Corners Property Trust, Inc. | | |
Gaming & Leisure Properties, Inc. | | |
| | |
Lamar Advertising Co., Class A | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Brixmor Property Group, Inc. | | |
Federal Realty Investment Trust | | |
| | |
InvenTrust Properties Corp. | | |
| | |
| | |
| | |
| | |
| | |
Schwab U.S. REIT ETF | Semiannual Holdings and Financial Statements
3
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
Phillips Edison & Co., Inc. | | |
| | |
| | |
Retail Opportunity Investments Corp. | | |
Simon Property Group, Inc. | | |
| | |
| | |
| | |
| | |
|
|
| | |
Extra Space Storage, Inc. | | |
National Storage Affiliates Trust | | |
| | |
| | |
|
Single-Family Residential REITs 4.7% |
American Homes 4 Rent, Class A | | |
Equity LifeStyle Properties, Inc. | | |
| | |
| | |
| | |
| | |
|
Telecom Tower REITs 12.7% |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $6,627,797,197) | |
| | |
SHORT-TERM INVESTMENTS 0.3% 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 $18,780,236) | |
Total Investments in Securities
(Cost $6,646,577,433) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
Dow Jones U.S. Real Estate 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 $12,092,850. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Real Estate Investment Trust |
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. |
4
Schwab U.S. REIT ETF | Semiannual Holdings and Financial Statements
Statement of Assets and Liabilities
As of August 31, 2024; unaudited
|
Investments in securities, at value - unaffiliated issuers (cost $6,646,577,433) including securities on loan of $12,092,850 | | |
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 | | |
| | |
| | |
Schwab U.S. REIT ETF | Semiannual Holdings and Financial Statements
5
Statement of Operations
For the period March 1, 2024 through August 31, 2024; unaudited |
|
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 | | |
6
Schwab U.S. REIT ETF | Semiannual Holdings and Financial Statements
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
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 U.S. REIT ETF | Semiannual Holdings and Financial Statements
7
Financial Notes, unaudited
1. Business Structure of the Fund:
Schwab U.S. REIT ETF is a series of Schwab Strategic Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the operational funds in the trust as of the end of the period, including the fund discussed in this report, which is highlighted:
|
| Schwab Short-Term U.S. Treasury ETF |
Schwab U.S. Broad Market ETF | Schwab Intermediate-Term U.S. Treasury ETF |
| Schwab Long-Term U.S. Treasury ETF |
Schwab U.S. Large-Cap ETF | Schwab U.S. Aggregate Bond ETF |
Schwab U.S. Large-Cap Growth ETF | Schwab 1-5 Year Corporate Bond ETF |
Schwab U.S. Large-Cap Value ETF | Schwab 5-10 Year Corporate Bond ETF |
| Schwab Fundamental U.S. Broad Market ETF |
Schwab U.S. Small-Cap ETF | Schwab Fundamental U.S. Large Company ETF |
Schwab U.S. Dividend Equity 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 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 U.S. REIT ETF’s goal is to track as closely as possible, before fees and expenses, the total return of an index composed of U.S. real estate investment trusts classified as equities.
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.
8
Schwab U.S. REIT ETF | Semiannual Holdings and Financial Statements
Financial Notes, unaudited (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:
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 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, exchage-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.
● 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
Schwab U.S. REIT ETF | Semiannual Holdings and Financial Statements
9
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
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):
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. The fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by the fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures contracts are traded publicly on exchanges, and their value may change daily.
Securities Lending: Under the trust’s Securities Lending Program, the 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 the 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. The fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the fund 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 agreements. Securities lending income, as disclosed in the 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 the 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 the fund, including collateral received from the loan. Securities lending fees paid to the unaffiliated lending agents 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, the fund 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 the fund’s Portfolio Holdings and Statement of Assets and Liabilities.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
When the 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.
The fund invests in real estate investment trusts (REITs) which report information on the source of their distributions annually. The fund’s policy is to record all REIT distributions initially as dividend income on the ex-dividend date and then re-designate them as return of capital and/or capital gain distributions at the end of the reporting period based on information provided annually by each REIT, and management estimates such re-designations when actual information has not yet been reported.
10
Schwab U.S. REIT ETF | Semiannual Holdings and Financial Statements
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(d) Investment Income:
Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date). Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
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, 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 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.
Schwab U.S. REIT ETF | Semiannual Holdings and Financial Statements
11
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
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, the fund’s performance could be impacted.
Large-Cap Company Risk. 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. 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. 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.
Real Estate Investment Risk. Due to the composition of the index, the fund concentrates its investments in real estate companies and companies related to the real estate industry. As such, the fund is subject to risks associated with the direct ownership of real estate securities and an investment in the fund will be closely linked to the performance of the real estate markets. These risks include, among others: declines in the value of (or income generated by) real estate; risks related to general and local economic conditions; possible lack of availability of mortgage funds or other limits to accessing the credit or capital markets; defaults by borrowers or tenants, particularly during an economic downturn; and changes in interest rates.
REITs Risk. In addition to the risks associated with investing in securities of real estate companies and real estate related companies, REITs are subject to certain additional risks. Equity REITs may be affected by changes in the value of the underlying properties owned by the trusts. Further, REITs are dependent upon specialized management skills and cash flows, and may have their investments in relatively few properties, or in a small geographic area or a single property type. Failure of a company to qualify as a REIT under federal tax law may have adverse consequences to the fund. In addition, REITs have their own expenses, and the fund will bear a proportionate share of those expenses. The value of a REIT may be affected by changes in interest rates.
Tracking Error Risk. As an index fund, the fund seeks to track the performance of its 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.
Derivatives Risk. The principal types of derivatives used by the fund are futures contracts. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. The fund’s use of derivatives that are 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.
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 liquidity risk, leverage risk, market risk and operational risk are discussed elsewhere in this section. The 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 derivatives 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 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 could 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.
Concentration Risk. To the extent that the fund’s or the index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector or asset class (including the real estate industry, as described above), the fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more vulnerable to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector or asset class.
12
Schwab U.S. REIT ETF | Semiannual Holdings and Financial Statements
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
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.
Leverage Risk. Certain fund transactions, such as derivatives transactions, may give rise to a form of leverage and may expose the fund to greater risk. Leverage tends to magnify the effect of any decrease or increase in the value of the 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 the 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.
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, 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 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 0.07% of the fund’s average daily net assets.
Schwab U.S. REIT ETF | Semiannual Holdings and Financial Statements
13
Financial Notes, unaudited (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 percentage of shares of the fund that are owned by other funds in the Fund Complex as of August 31, 2024, as applicable:
Schwab MarketTrack All Equity Portfolio | |
Schwab MarketTrack Balanced Portfolio | |
Schwab MarketTrack Conservative Portfolio | |
Schwab MarketTrack Growth Portfolio | |
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 fund 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, the fund’s purchases and sales of securities with other funds in the Fund Complex was $6,818,091 and $52,298,677, respectively, and includes realized losses of $8,028,185.
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.
14
Schwab U.S. REIT ETF | Semiannual Holdings and Financial Statements
Financial Notes, unaudited (continued)
6. Borrowing from Banks:
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), 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, 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.
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.
The fund entered into futures contracts during the report period to equitize available cash. Refer to financial note 2(b) for the fund’s accounting policies with respect to futures contracts and financial note 3 for disclosures concerning the risks of investing in futures contracts.
As of August 31, 2024, the Statement of Assets and Liabilities included the following financial derivative instrument fair values held at period end:
| |
| 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) | | |
| | |
Net Change in Unrealized Appreciation (Depreciation) | | |
| | |
| |
| Statement of Operations location: Net realized gains (losses) on futures contracts. |
| 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 fund and the month-end average number of contracts held were as follows:
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 U.S. REIT ETF | Semiannual Holdings and Financial Statements
15
Financial Notes, unaudited (continued)
9. In-Kind Transactions:
The consideration for the purchase of Creation Units of the 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 the 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.
10. Federal Income Taxes: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.
Capital loss carryforwards have no expiration and may be used to offset future realized capital gains for federal income tax purposes. As of February 29, 2024, the fund had capital loss carryforwards of $882,499,697.
The tax basis components of distributions and components of distributable earnings on a tax basis are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of August 31, 2024. The tax basis components of distributions paid during the fiscal year ended February 29, 2024, were as follows:
| PRIOR FISCAL YEAR END 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.
16
Schwab U.S. REIT ETF | Semiannual Holdings and Financial Statements
Financial Notes, unaudited (continued)
10. Federal Income Taxes (continued):
As of February 29, 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 February 29, 2024, the fund did not incur any interest or penalties.
The Board authorized a 2-for-1 share split for the Schwab U.S. REIT ETF which applied to shareholders of record as of the close of U.S. markets on March 8, 2022, and paid after the close of U.S. markets on March 10, 2022. Shares began trading at their post-split price on March 11, 2022. The share split increased the number of shares outstanding and decreased the NAV per share. The share split did not change the total value of a shareholder’s investment. The Financial Highlights for the fund have been retroactively adjusted for the period ended February 28, 2023, and prior report periods, to reflect the above share split.
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 U.S. REIT ETF | Semiannual Holdings and Financial Statements
17
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. REIT 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 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 considered Schwab’s overall
18
Schwab U.S. REIT ETF | Semiannual Holdings and Financial Statements
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 the Fund’s performance in determining whether to renew the Agreement with respect to the Fund. Specifically, the Trustees considered the 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 the 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 the Fund, the Trustees considered the risk profile for the Fund and the Fund’s demonstrated performance in tracking its benchmark index. The Trustees noted that the Fund had closely tracked its index in 2023, performing in its expected performance range. 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 the Fund supported renewal of the Agreement with respect to the Fund.
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. REIT indexes. 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. 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
Schwab U.S. REIT ETF | Semiannual Holdings and Financial Statements
19
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.
20
Schwab U.S. REIT ETF | Semiannual Holdings and Financial Statements
Semiannual Holdings and Financial Statements | August 31, 2024
Schwab Fundamental Index* ETFs
Schwab Fundamental U.S. Broad Market ETF (formerly Schwab Fundamental U.S. Broad Market Index ETF) | |
Schwab Fundamental U.S. Large Company ETF (formerly Schwab Fundamental U.S. Large Company Index ETF) | |
Schwab Fundamental U.S. Small Company ETF (formerly Schwab Fundamental U.S. Small Company Index ETF) | |
Schwab Fundamental International Equity ETF (formerly Schwab Fundamental International Large Company Index ETF) | |
Schwab Fundamental International Small Equity ETF (formerly Schwab Fundamental International Small Company Index ETF) | |
Schwab Fundamental Emerging Markets Equity ETF (formerly Schwab Fundamental Emerging Markets Large Company Index ETF) | |
*
SCHWAB is a registered trademark of Charles Schwab & Co., Inc.
FUNDAMENTAL INDEX is a registered trademark of Research Affiliates LLC.
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 Fundamental Index ETFs | Semiannual Holdings and Financial Statements
1
Schwab Fundamental U.S. Broad Market 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) | | | | | | |
| |
| 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. |
2
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (Unaudited)
| | |
COMMON STOCKS 99.8% OF NET ASSETS |
|
Automobiles & Components 1.5% |
| | |
American Axle & Manufacturing Holdings, Inc. * | | |
| | |
| | |
| | |
Cooper-Standard Holdings, Inc. * | | |
| | |
| | |
| | |
Fox Factory Holding Corp. * | | |
| | |
| | |
| | |
Goodyear Tire & Rubber Co. * | | |
| | |
| | |
| | |
Modine Manufacturing Co. * | | |
| | |
| | |
Standard Motor Products, Inc. | | |
| | |
| | |
| | |
| | |
Winnebago Industries, Inc. | | |
| | |
|
|
| | |
| | |
| | |
Atlantic Union Bankshares Corp. | | |
| | |
| | |
| | |
| | |
| | |
Bank of NT Butterfield & Son Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Capitol Federal Financial, Inc. | | |
| | |
Central Pacific Financial Corp. | | |
| | |
Citizens Financial Group, Inc. | | |
| | |
Columbia Banking System, Inc. | | |
| | |
Commerce Bancshares, Inc. | | |
Community Financial System, Inc. | | |
| | |
| | |
Cullen/Frost Bankers, Inc. | | |
Customers Bancorp, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Enterprise Financial Services Corp. | | |
| | |
| | |
First Bancorp/Southern Pines NC | | |
| | |
First Citizens BancShares, Inc., Class A | | |
First Commonwealth Financial Corp. | | |
| | |
First Financial Bankshares, Inc. | | |
| | |
| | |
First Interstate BancSystem, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
Heartland Financial USA, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
Independent Bank Group, Inc. | | |
International Bancshares Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
New York Community Bancorp, Inc. | | |
| | |
Northwest Bancshares, Inc. | | |
OceanFirst Financial Corp. | | |
| | |
| | |
Pacific Premier Bancorp, Inc. | | |
| | |
| | |
Pinnacle Financial Partners, Inc. | | |
PNC Financial Services Group, Inc. | | |
| | |
| | |
Prosperity Bancshares, Inc. | | |
Provident Financial Services, Inc. | | |
| | |
| | |
| | |
Sandy Spring Bancorp, Inc. | | |
Seacoast Banking Corp. of Florida | | |
ServisFirst Bancshares, Inc. | | |
Simmons First National Corp., Class A | | |
Southside Bancshares, Inc. | | |
| | |
| | |
Texas Capital Bancshares, Inc. * | | |
| | |
| | |
| | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
3
Schwab Fundamental U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
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. | | |
| | |
| | |
Armstrong World Industries, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Beacon Roofing Supply, Inc. * | | |
BlueLinx Holdings, Inc. * | | |
| | |
| | |
Builders FirstSource, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Comfort Systems USA, Inc. | | |
Construction Partners, Inc., Class A * | | |
Core & Main, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fortune Brands Innovations, Inc. | | |
Franklin Electric Co., Inc. | | |
| | |
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. | | |
| | |
| | |
| | |
John Bean Technologies Corp. | | |
Johnson Controls International PLC | | |
| | |
| | |
Kratos Defense & Security Solutions, Inc. * | | |
L3Harris Technologies, Inc. | | |
Lennox International, Inc. | | |
| | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
4
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
MDU Resources Group, Inc. | | |
| | |
| | |
| | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
Mueller Water Products, Inc., Class A | | |
| | |
National Presto Industries, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Quanex Building Products Corp. | | |
| | |
| | |
| | |
Resideo Technologies, Inc. * | | |
| | |
Rockwell Automation, Inc. | | |
| | |
Rush Enterprises, Inc., Class A | | |
Sensata Technologies Holding PLC | | |
| | |
Simpson Manufacturing Co., Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
| | |
Spirit AeroSystems Holdings, Inc., Class A * | | |
| | |
Standex International Corp. | | |
Stanley Black & Decker, Inc. | | |
Sterling Infrastructure, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Thermon Group Holdings, Inc. * | | |
| | |
Titan International, 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. | | |
Barrett Business Services, 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. | | |
| | |
| | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
| | |
| | |
ExlService Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Healthcare Services Group, Inc. * | | |
Heidrick & Struggles International, Inc. | | |
| | |
Huron Consulting Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Kelly Services, Inc., Class A | | |
| | |
| | |
| | |
| | |
Matthews International Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
5
Schwab Fundamental U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
Resources Connection, Inc. | | |
| | |
| | |
Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 4.3% |
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. * | | |
| | |
Burlington Stores, Inc. * | | |
| | |
Camping World Holdings, Inc., Class A | | |
| | |
Children's Place, Inc. *(a) | | |
| | |
ContextLogic, 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. * | | |
OneWater Marine, Inc., Class A * | | |
O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. | | |
Petco Health & Wellness Co., Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Sally Beauty Holdings, Inc. * | | |
| | |
| | |
| | |
Sonic Automotive, Inc., Class A | | |
Sportsman's Warehouse Holdings, Inc. * | | |
Stitch Fix, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Victoria's Secret & Co. * | | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 1.8% |
| | |
| | |
| | |
| | |
| | |
| | |
Century Communities, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Ethan Allen Interiors, Inc. | | |
| | |
G-III Apparel Group Ltd. * | | |
| | |
Green Brick Partners, Inc. * | | |
| | |
| | |
| | |
Hovnanian Enterprises, Inc., Class A * | | |
Installed Building Products, Inc. | | |
| | |
6
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
Levi Strauss & Co., Class A | | |
| | |
Lululemon Athletica, Inc. * | | |
| | |
| | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Peloton Interactive, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Skechers USA, Inc., Class A * | | |
Smith & Wesson Brands, Inc. | | |
| | |
| | |
| | |
| | |
Taylor Morrison Home Corp. * | | |
Tempur Sealy International, Inc. | | |
| | |
| | |
Topgolf Callaway Brands Corp. * | | |
| | |
Tupperware Brands Corp. *(a)(b) | | |
Under Armour, Inc., Class A * | | |
| | |
| | |
| | |
Wolverine World Wide, Inc. | | |
Worthington Enterprises, Inc. | | |
| | |
| | |
|
|
| | |
Adtalem Global Education, Inc. * | | |
| | |
| | |
Arcos Dorados Holdings, Inc., Class 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 * | | |
| | |
| | |
| | |
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 | | |
International Game Technology PLC | | |
| | |
| | |
| | |
| | |
Marriott International, Inc., Class A | | |
Marriott Vacations Worldwide Corp. | | |
| | |
MGM Resorts International * | | |
Papa John's International, Inc. | | |
Penn Entertainment, Inc. * | | |
| | |
Planet Fitness, Inc., Class A * | | |
Red Rock Resorts, Inc., Class A | | |
Royal Caribbean Cruises Ltd. * | | |
| | |
Service Corp. International | | |
| | |
Strategic Education, Inc. | | |
| | |
| | |
| | |
United Parks & Resorts, Inc. * | | |
| | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 3.3% |
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. | | |
| | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
7
Schwab Fundamental U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
California Resources Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Crescent Energy Co., Class A | | |
| | |
Delek U.S. Holdings, Inc. | | |
| | |
| | |
Diamond Offshore Drilling, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Expro Group Holdings NV * | | |
| | |
| | |
| | |
| | |
Helix Energy Solutions Group, Inc. * | | |
| | |
| | |
| | |
International Seaways, Inc. | | |
| | |
| | |
| | |
Magnolia Oil & Gas Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Occidental Petroleum Corp. | | |
Oceaneering International, Inc. * | | |
Oil States International, Inc. * | | |
| | |
| | |
Par Pacific Holdings, Inc. * | | |
Patterson-UTI Energy, Inc. | | |
PBF Energy, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
REX American Resources Corp. * | | |
| | |
| | |
| | |
Select Water Solutions, Inc. | | |
| | |
| | |
Southwestern Energy Co. * | | |
| | |
| | |
| | |
| | |
Teekay Tankers Ltd., Class A | | |
| | |
| | |
Tsakos Energy Navigation Ltd. | | |
| | |
| | |
| | |
| | |
Weatherford International PLC | | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 2.3% |
| | |
| | |
Alexander & Baldwin, Inc. | | |
Alexandria Real Estate Equities, Inc. | | |
American Assets Trust, Inc. | | |
American Homes 4 Rent, Class A | | |
| | |
Americold Realty Trust, Inc. | | |
Apple Hospitality REIT, Inc. | | |
AvalonBay Communities, Inc. | | |
| | |
Brixmor Property Group, Inc. | | |
Broadstone Net Lease, Inc. | | |
| | |
| | |
| | |
CBL & Associates Properties, 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. | | |
8
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
Extra Space Storage, Inc. | | |
Federal Realty Investment Trust | | |
First Industrial Realty Trust, Inc. | | |
Four Corners Property Trust, Inc. | | |
Gaming & Leisure Properties, 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 | | |
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 | | |
| | |
Office Properties Income Trust | | |
Omega Healthcare Investors, Inc. | | |
| | |
| | |
Park Hotels & Resorts, Inc. | | |
| | |
| | |
Phillips Edison & Co., Inc. | | |
Piedmont Office Realty Trust, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
Retail Opportunity Investments Corp. | | |
Rexford Industrial Realty, Inc. | | |
| | |
Ryman Hospitality Properties, Inc. | | |
Sabra Health Care REIT, Inc. | | |
| | |
| | |
Simon Property Group, Inc. | | |
| | |
| | |
| | |
| | |
Sunstone Hotel Investors, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Xenia Hotels & Resorts, Inc. | | |
| | |
|
|
Affiliated Managers Group, Inc. | | |
| | |
| | |
| | |
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 | | |
Artisan Partners Asset Management, Inc., Class A | | |
B Riley Financial, Inc. (a) | | |
Bank of New York Mellon Corp. | | |
Berkshire Hathaway, Inc., Class B * | | |
| | |
| | |
Blackstone Mortgage Trust, Inc., Class A (a) | | |
| | |
| | |
Bread Financial Holdings, Inc. | | |
Brightsphere Investment Group, Inc. | | |
BrightSpire Capital, Inc. | | |
| | |
Capital One Financial Corp. | | |
| | |
Cboe Global Markets, Inc. | | |
| | |
| | |
Claros Mortgage Trust, Inc. | | |
| | |
| | |
Coinbase Global, Inc., Class A * | | |
Compass Diversified Holdings | | |
Corebridge Financial, Inc. | | |
| | |
Credit Acceptance Corp. * | | |
Diamond Hill Investment Group, Inc. | | |
Discover Financial Services | | |
Donnelley Financial Solutions, 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. | | |
| | |
| | |
Franklin BSP Realty Trust, Inc. | | |
| | |
| | |
Goldman Sachs Group, Inc. | | |
Granite Point Mortgage Trust, Inc. | | |
Green Dot Corp., Class A * | | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
9
Schwab Fundamental U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
HA Sustainable Infrastructure Capital, Inc. | | |
Hamilton Lane, Inc., Class A | | |
| | |
Interactive Brokers Group, Inc., Class A | | |
Intercontinental Exchange, 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 | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
New York Mortgage Trust, Inc. | | |
NMI Holdings, Inc., Class A * | | |
| | |
| | |
Pagseguro Digital Ltd., Class A * | | |
| | |
PennyMac Financial Services, Inc. | | |
PennyMac Mortgage Investment Trust | | |
| | |
PJT Partners, Inc., Class A | | |
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
| | |
| | |
Rocket Cos., Inc., Class A * | | |
| | |
| | |
| | |
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. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 3.4% |
| | |
| | |
Archer-Daniels-Midland Co. | | |
| | |
Boston Beer Co., Inc., Class A * | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
| | |
| | |
| | |
Coca-Cola Consolidated, Inc. | | |
Coca-Cola Europacific Partners PLC | | |
| | |
Constellation Brands, Inc., Class A | | |
Darling Ingredients, 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. | | |
| | |
| | |
| | |
Seneca Foods Corp., Class A * | | |
| | |
| | |
Tyson Foods, Inc., Class A | | |
| | |
| | |
| | |
| | |
|
Health Care Equipment & Services 5.8% |
| | |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
10
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
AMN Healthcare Services, Inc. * | | |
| | |
| | |
Baxter International, Inc. | | |
| | |
Boston Scientific Corp. * | | |
Brookdale Senior Living, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Clover Health Investments Corp. * | | |
Community Health Systems, Inc. * | | |
| | |
| | |
Cross Country Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
GE HealthCare Technologies, Inc. | | |
Globus Medical, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
| | |
| | |
Integra LifeSciences Holdings Corp. * | | |
Intuitive Surgical, 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. * | | |
| | |
| | |
Pediatrix Medical Group, Inc. * | | |
| | |
| | |
| | |
Privia Health Group, Inc. * | | |
| | |
| | |
| | |
| | |
Select Medical Holdings Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
U.S. Physical Therapy, Inc. | | |
| | |
Universal Health Services, Inc., Class B | | |
| | |
Veeva Systems, Inc., Class A * | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
| | |
|
Household & Personal Products 1.2% |
| | |
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. | | |
| | |
| | |
Cincinnati Financial Corp. | | |
| | |
CNO Financial Group, Inc. | | |
| | |
| | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
11
Schwab Fundamental U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
Erie Indemnity Co., Class A | | |
| | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
Genworth Financial, 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. | | |
| | |
Principal Financial Group, Inc. | | |
| | |
| | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
RenaissanceRe Holdings Ltd. | | |
| | |
Safety Insurance Group, Inc. | | |
Selective Insurance Group, Inc. | | |
Stewart Information Services Corp. | | |
| | |
| | |
Universal Insurance Holdings, Inc. | | |
| | |
| | |
White Mountains Insurance Group Ltd. | | |
| | |
| | |
|
|
| | |
Air Products & Chemicals, Inc. | | |
| | |
| | |
Alpha Metallurgical Resources, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Ardagh Metal Packaging SA | | |
| | |
| | |
| | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
| | |
Carpenter Technology Corp. | | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Compass Minerals International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Graphic Packaging Holding Co. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
LyondellBasell Industries NV, Class A | | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
Mercer International, Inc. | | |
| | |
Minerals Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Packaging Corp. of America | | |
| | |
| | |
| | |
| | |
Radius Recycling, Inc., Class A | | |
Rayonier Advanced Materials, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Sensient Technologies Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
12
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
Summit Materials, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 6.1% |
| | |
| | |
AMC Entertainment Holdings, Inc., Class A * | | |
AMC Networks, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Charter Communications, Inc., Class A * | | |
Cinemark Holdings, Inc. * | | |
Clear Channel Outdoor Holdings, Inc. * | | |
| | |
EchoStar Corp., Class A * | | |
| | |
Endeavor Group Holdings, Inc., Class A (a) | | |
EW Scripps Co., Class A * | | |
| | |
| | |
| | |
| | |
iHeartMedia, Inc., Class A * | | |
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 SiriusXM, Class C * | | |
Lions Gate Entertainment Corp., Class A * | | |
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 5.5% |
| | |
Agilent Technologies, Inc. | | |
| | |
| | |
Amphastar Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
Corcept Therapeutics, Inc. * | | |
| | |
Elanco Animal Health, Inc. * | | |
| | |
Emergent BioSolutions, Inc. *(b) | | |
| | |
| | |
| | |
| | |
Halozyme Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Ironwood Pharmaceuticals, Inc. * | | |
Jazz Pharmaceuticals PLC * | | |
| | |
| | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
| | |
Neurocrine Biosciences, Inc. * | | |
| | |
Pacira BioSciences, Inc. * | | |
| | |
| | |
Prestige Consumer Healthcare, Inc. * | | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
| | |
Royalty Pharma PLC, Class A | | |
Supernus Pharmaceuticals, Inc. * | | |
Thermo Fisher Scientific, Inc. | | |
United Therapeutics Corp. * | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
Vir Biotechnology, Inc. * | | |
| | |
West Pharmaceutical Services, Inc. | | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
13
Schwab Fundamental U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
|
Real Estate Management & Development 0.3% |
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 | | |
Opendoor Technologies, Inc. * | | |
Seaport Entertainment Group, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 4.0% |
Advanced Micro Devices, Inc. * | | |
Allegro MicroSystems, Inc. * | | |
Alpha & Omega Semiconductor Ltd. * | | |
| | |
| | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Kulicke & Soffa Industries, Inc. | | |
| | |
Lattice Semiconductor Corp. * | | |
| | |
| | |
Microchip Technology, Inc. | | |
| | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Silicon Laboratories, Inc. * | | |
| | |
SMART Global Holdings, Inc. * | | |
SolarEdge Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Ultra Clean Holdings, Inc. * | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Akamai Technologies, Inc. * | | |
Alarm.com Holdings, Inc. * | | |
| | |
| | |
AppLovin Corp., Class A * | | |
| | |
| | |
Bentley Systems, Inc., Class B | | |
| | |
Cadence Design Systems, Inc. * | | |
| | |
Check Point Software Technologies Ltd. * | | |
Cognizant Technology Solutions Corp., Class A | | |
CommVault Systems, Inc. * | | |
Consensus Cloud Solutions, Inc. * | | |
Dolby Laboratories, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
| | |
International Business Machines Corp. | | |
| | |
| | |
LiveRamp Holdings, Inc. * | | |
Manhattan Associates, Inc. * | | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
Palo Alto Networks, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
RingCentral, Inc., Class A * | | |
| | |
| | |
| | |
Snowflake, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
14
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
| | |
|
Technology Hardware & Equipment 6.9% |
| | |
Advanced Energy Industries, Inc. | | |
| | |
| | |
| | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
Benchmark Electronics, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
CommScope Holding Co., Inc. * | | |
Comtech Telecommunications Corp. * | | |
| | |
| | |
| | |
Dell Technologies, Inc., Class C | | |
| | |
| | |
| | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
Insight Enterprises, Inc. * | | |
| | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
Kimball Electronics, Inc. * | | |
| | |
| | |
Lumentum Holdings, Inc. * | | |
Methode Electronics, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pure Storage, Inc., Class A * | | |
| | |
| | |
| | |
Seagate Technology Holdings PLC | | |
Super Micro Computer, Inc. * | | |
| | |
| | |
Teledyne Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Vishay Intertechnology, Inc. | | |
| | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 3.1% |
| | |
| | |
Cogent Communications Holdings, Inc. | | |
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. | | |
| | |
Covenant Logistics Group, Inc., Class A | | |
| | |
| | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
| | |
Genco Shipping & Trading Ltd. | | |
| | |
| | |
Hertz Global Holdings, Inc. * | | |
| | |
JB Hunt Transport Services, Inc. | | |
| | |
| | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Old Dominion Freight Line, Inc. | | |
| | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
| | |
| | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
15
Schwab Fundamental U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
Uber Technologies, Inc. * | | |
U-Haul Holding Co., Non Voting Shares | | |
| | |
United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
| | |
| | |
ZIM Integrated Shipping Services Ltd. (a) | | |
| | |
|
|
| | |
| | |
| | |
| | |
American Electric Power Co., Inc. | | |
American States Water Co. | | |
American Water Works Co., Inc. | | |
Atlantica Sustainable Infrastructure PLC | | |
| | |
| | |
| | |
| | |
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. * | | |
| | |
| | |
| | |
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. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $595,474,762) | |
|
INVESTMENT COMPANIES 0.1% OF NET ASSETS |
|
|
iShares Core S&P Total U.S. Stock Market ETF | | |
Total Investment Companies
(Cost $337,261) | |
| | |
SHORT-TERM INVESTMENTS 0.1% 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 $1,156,276) | |
Total Investments in Securities
(Cost $596,968,299) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
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 $631,137. |
| 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 |
16
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Broad Market ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
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 February 29, 2024, 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 0.1% OF NET ASSETS |
|
Consumer Durables & Apparel 0.0% |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
Equity Real Estate Investment Trusts (REITs) 0.0% |
Ashford Hospitality Trust, Inc. | | | | | | | | |
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) | |
| | | | |
| | | | |
Health Care Equipment & Services | | | | |
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 Fundamental Index ETFs | Semiannual Holdings and Financial Statements
17
Schwab Fundamental U.S. Broad Market ETF
Statement of Assets and Liabilities
As of August 31, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $821,267) including securities on loan of $21,120 | | |
Investments in securities, at value - unaffiliated issuers (cost $596,147,032) including securities on loan of $610,017 | | |
| | |
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). |
18
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Broad Market ETF
Statement of Operations
For the period March 1, 2024 through August 31, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $7,118) | | |
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 Fundamental Index ETFs | Semiannual Holdings and Financial Statements
19
Schwab Fundamental U.S. Broad Market ETF
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
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). |
20
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Large Company 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 Fundamental Index ETFs | Semiannual Holdings and Financial Statements
21
Schwab Fundamental U.S. Large Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited)
| | |
COMMON STOCKS 99.8% OF NET ASSETS |
|
Automobiles & Components 1.6% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Goodyear Tire & Rubber Co. * | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Citizens Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
First Citizens BancShares, Inc., Class A | | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
| | |
New York Community Bancorp, Inc. | | |
PNC Financial Services Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Allison Transmission Holdings, Inc. | | |
| | |
Beacon Roofing Supply, Inc. * | | |
| | |
| | |
Builders FirstSource, 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. | | |
| | |
| | |
| | |
MDU Resources Group, Inc. | | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Resideo Technologies, Inc. * | | |
Rockwell Automation, Inc. | | |
| | |
Rush Enterprises, Inc., Class A | | |
Sensata Technologies Holding PLC | | |
| | |
Stanley Black & Decker, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
| | |
22
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Large Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
|
Commercial & Professional Services 1.1% |
| | |
Automatic Data Processing, Inc. | | |
Booz Allen Hamilton Holding Corp., Class A | | |
Broadridge Financial Solutions, Inc. | | |
CACI International, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 4.3% |
Academy Sports & Outdoors, Inc. | | |
| | |
| | |
American Eagle Outfitters, Inc. | | |
Asbury Automotive Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Burlington Stores, Inc. * | | |
| | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 1.6% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lululemon Athletica, Inc. * | | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Skechers USA, Inc., Class A * | | |
| | |
Taylor Morrison Home Corp. * | | |
Tempur Sealy International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Caesars Entertainment, Inc. * | | |
| | |
Chipotle Mexican Grill, Inc. * | | |
| | |
| | |
| | |
| | |
Hilton Worldwide Holdings, Inc. | | |
| | |
Marriott International, Inc., Class A | | |
Marriott Vacations Worldwide Corp. | | |
| | |
MGM Resorts International * | | |
Penn Entertainment, Inc. * | | |
Service Corp. International | | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 3.5% |
Albertsons Cos., Inc., Class A | | |
| | |
BJ's Wholesale Club Holdings, Inc. * | | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
23
Schwab Fundamental U.S. Large Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
Casey's General Stores, Inc. | | |
| | |
| | |
| | |
| | |
Performance Food Group Co. * | | |
| | |
Sprouts Farmers Market, Inc. * | | |
| | |
| | |
U.S. Foods Holding Corp. * | | |
United Natural Foods, Inc. * | | |
Walgreens Boots Alliance, Inc. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Delek U.S. Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Occidental Petroleum Corp. | | |
| | |
| | |
PBF Energy, Inc., Class A | | |
| | |
| | |
| | |
| | |
Southwestern Energy Co. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 1.8% |
Alexandria Real Estate Equities, Inc. | | |
| | |
AvalonBay Communities, Inc. | | |
Brixmor Property Group, Inc. | | |
| | |
| | |
| | |
Digital Realty Trust, Inc. | | |
| | |
| | |
| | |
Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Gaming & Leisure Properties, Inc. | | |
Healthpeak Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
Lamar Advertising Co., Class A | | |
Medical Properties Trust, Inc. (a) | | |
Mid-America Apartment Communities, Inc. | | |
Park Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Simon Property Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Affiliated Managers Group, Inc. | | |
| | |
| | |
Ameriprise Financial, Inc. | | |
Annaly Capital Management, Inc. | | |
Apollo Global Management, Inc. | | |
Bank of New York Mellon Corp. | | |
Berkshire Hathaway, Inc., Class B * | | |
| | |
| | |
| | |
Bread Financial Holdings, Inc. | | |
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. | | |
Jackson Financial, Inc., Class A | | |
Janus Henderson Group PLC | | |
Jefferies Financial Group, Inc. | | |
| | |
24
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Large Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
LPL Financial Holdings, Inc. | | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
| | |
| | |
| | |
Starwood Property Trust, Inc. | | |
| | |
| | |
T. Rowe Price Group, Inc. | | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 3.5% |
| | |
Archer-Daniels-Midland Co. | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
| | |
Coca-Cola Europacific Partners PLC | | |
| | |
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 5.9% |
| | |
| | |
Baxter International, Inc. | | |
| | |
Boston Scientific Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Community Health Systems, Inc. * | | |
| | |
| | |
| | |
| | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
GE HealthCare Technologies, Inc. | | |
| | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
Intuitive Surgical, Inc. * | | |
| | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
|
Household & Personal Products 1.2% |
Church & Dwight Co., Inc. | | |
| | |
| | |
Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
American Financial Group, Inc. | | |
American International Group, Inc. | | |
| | |
Arch Capital Group Ltd. * | | |
| | |
| | |
| | |
| | |
Cincinnati Financial Corp. | | |
CNO Financial Group, Inc. | | |
| | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
Genworth Financial, Inc., Class A * | | |
| | |
Hanover Insurance Group, Inc. | | |
Hartford Financial Services Group, Inc. | | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
25
Schwab Fundamental U.S. Large Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
Old Republic International Corp. | | |
| | |
Principal Financial Group, Inc. | | |
| | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, 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 | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 6.4% |
| | |
| | |
Charter Communications, Inc., Class A * | | |
| | |
| | |
| | |
Interpublic Group of Cos., Inc. | | |
Liberty Media Corp.-Liberty SiriusXM, Class C * | | |
Meta Platforms, Inc., Class A | | |
| | |
| | |
Nexstar Media Group, Inc. | | |
| | |
Paramount Global, Class B | | |
Take-Two Interactive Software, Inc. * | | |
| | |
| | |
Warner Bros Discovery, Inc. * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 5.7% |
| | |
Agilent Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Jazz Pharmaceuticals PLC * | | |
| | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
| | |
| | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
Thermo Fisher Scientific, Inc. | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
| | |
|
Real Estate Management & Development 0.2% |
Anywhere Real Estate, Inc. * | | |
CBRE Group, Inc., Class A * | | |
26
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Large Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
Jones Lang LaSalle, Inc. * | | |
| | |
|
Semiconductors & Semiconductor Equipment 4.1% |
Advanced Micro Devices, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Microchip Technology, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Akamai Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Cadence Design Systems, Inc. * | | |
Check Point Software Technologies Ltd. * | | |
Cognizant Technology Solutions Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
International Business Machines Corp. | | |
| | |
| | |
| | |
| | |
Palo Alto Networks, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Technology Hardware & Equipment 7.1% |
| | |
| | |
| | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Dell Technologies, Inc., Class C | | |
| | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
Insight Enterprises, Inc. * | | |
| | |
| | |
Keysight Technologies, Inc. * | | |
| | |
| | |
| | |
Seagate Technology Holdings PLC | | |
| | |
| | |
Teledyne Technologies, Inc. * | | |
| | |
Vishay Intertechnology, Inc. | | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 3.4% |
| | |
Frontier Communications Parent, Inc. * | | |
Liberty Global Ltd., Class C * | | |
Liberty Latin America Ltd., Class C * | | |
Lumen Technologies, Inc. * | | |
Telephone & Data Systems, Inc. | | |
| | |
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 | | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
27
Schwab Fundamental U.S. Large Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
United Parcel Service, Inc., Class B | | |
| | |
ZIM Integrated Shipping Services Ltd. (a) | | |
| | |
|
|
| | |
| | |
| | |
American Electric Power Co., Inc. | | |
American Water Works Co., Inc. | | |
| | |
| | |
| | |
Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
| | |
Essential Utilities, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
Portland General Electric Co. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $12,972,714,593) | |
| | |
SHORT-TERM INVESTMENTS 0.1% 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 $15,617,476) | |
Total Investments in Securities
(Cost $12,988,332,069) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
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 $8,530,061. |
| Issuer is affiliated with the fund’s investment adviser. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
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 February 29, 2024, 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 0.1% OF NET ASSETS |
|
|
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
28
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Large Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (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 Fundamental Index ETFs | Semiannual Holdings and Financial Statements
29
Schwab Fundamental U.S. Large Company ETF
Statement of Assets and Liabilities
As of August 31, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $15,816,482) | | |
Investments in securities, at value - unaffiliated issuers (cost $12,972,515,587) including securities on loan of $8,530,061 | | |
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). |
30
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Large Company ETF
Statement of Operations
For the period March 1, 2024 through August 31, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $152,497) | | |
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 Fundamental Index ETFs | Semiannual Holdings and Financial Statements
31
Schwab Fundamental U.S. Large Company ETF
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
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). |
32
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Small Company 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 Fundamental Index ETFs | Semiannual Holdings and Financial Statements
33
Schwab Fundamental U.S. Small Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited)
| | |
COMMON STOCKS 99.9% OF NET ASSETS |
|
Automobiles & Components 1.4% |
American Axle & Manufacturing Holdings, Inc. * | | |
Cooper-Standard Holdings, Inc. * | | |
| | |
Fox Factory Holding Corp. * | | |
| | |
| | |
Modine Manufacturing Co. * | | |
| | |
| | |
Standard Motor Products, Inc. | | |
| | |
| | |
Winnebago Industries, Inc. | | |
| | |
|
|
| | |
| | |
| | |
Atlantic Union Bankshares Corp. | | |
| | |
| | |
| | |
| | |
Bank of NT Butterfield & Son Ltd. | | |
| | |
| | |
| | |
Berkshire Hills Bancorp, Inc. | | |
| | |
| | |
| | |
Capitol Federal Financial, Inc. | | |
| | |
Central Pacific Financial Corp. | | |
| | |
Columbia Banking System, Inc. | | |
Commerce Bancshares, Inc. | | |
Community Financial System, Inc. | | |
| | |
Cullen/Frost Bankers, Inc. | | |
Customers Bancorp, Inc. * | | |
| | |
| | |
| | |
Enterprise Financial Services Corp. | | |
| | |
| | |
First Bancorp/Southern Pines NC | | |
| | |
First Commonwealth Financial Corp. | | |
| | |
First Financial Bankshares, Inc. | | |
| | |
First Interstate BancSystem, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Heartland Financial USA, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Independent Bank Group, Inc. | | |
International Bancshares Corp. | | |
| | |
| | |
Midland States Bancorp, Inc. | | |
National Bank Holdings Corp., Class A | | |
| | |
| | |
Northwest Bancshares, Inc. | | |
NU Holdings Ltd., Class A * | | |
OceanFirst Financial Corp. | | |
| | |
| | |
Pacific Premier Bancorp, Inc. | | |
| | |
| | |
| | |
Pinnacle Financial Partners, Inc. | | |
| | |
| | |
Prosperity Bancshares, Inc. | | |
Provident Financial Services, Inc. | | |
| | |
| | |
Sandy Spring Bancorp, Inc. | | |
Seacoast Banking Corp. of Florida | | |
ServisFirst Bancshares, Inc. | | |
Simmons First National Corp., Class A | | |
Southside Bancshares, Inc. | | |
| | |
Texas Capital Bancshares, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
United Community Banks, Inc. | | |
| | |
| | |
| | |
Washington Trust Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Advanced Drainage Systems, Inc. | | |
| | |
Albany International Corp., Class A | | |
Ameresco, Inc., Class A * | | |
American Woodmark Corp. * | | |
34
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Small Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
Applied Industrial Technologies, Inc. | | |
| | |
| | |
Armstrong World Industries, Inc. | | |
| | |
| | |
| | |
| | |
| | |
BlueLinx Holdings, Inc. * | | |
| | |
| | |
| | |
Comfort Systems USA, Inc. | | |
Construction Partners, Inc., Class A * | | |
Core & Main, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Franklin Electric Co., Inc. | | |
| | |
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. * | | |
| | |
| | |
| | |
John Bean Technologies Corp. | | |
| | |
| | |
Kratos Defense & Security Solutions, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
Mueller Water Products, Inc., Class A | | |
| | |
National Presto Industries, Inc. | | |
| | |
| | |
Quanex Building Products Corp. | | |
| | |
| | |
| | |
Simpson Manufacturing Co., Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
Spirit AeroSystems Holdings, Inc., Class A * | | |
| | |
Standex International Corp. | | |
Sterling Infrastructure, Inc. * | | |
| | |
| | |
| | |
| | |
Thermon Group Holdings, Inc. * | | |
Titan International, Inc. * | | |
| | |
TPI Composites, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Watts Water Technologies, Inc., Class A | | |
WillScot Holdings Corp. * | | |
| | |
Zurn Elkay Water Solutions Corp. | | |
| | |
|
Commercial & Professional Services 6.1% |
| | |
| | |
Barrett Business Services, Inc. | | |
| | |
BrightView Holdings, Inc. * | | |
| | |
Casella Waste Systems, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
CSG Systems International, Inc. | | |
| | |
| | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
| | |
ExlService Holdings, Inc. * | | |
| | |
| | |
| | |
Healthcare Services Group, Inc. * | | |
Heidrick & Struggles International, Inc. | | |
| | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
35
Schwab Fundamental U.S. Small Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
Huron Consulting Group, Inc. * | | |
| | |
| | |
| | |
Kelly Services, Inc., Class A | | |
| | |
| | |
Matthews International Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Resources Connection, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 4.3% |
1-800-Flowers.com, Inc., Class A * | | |
| | |
Abercrombie & Fitch Co., Class A * | | |
A-Mark Precious Metals, Inc. | | |
American Eagle Outfitters, Inc. | | |
America's Car-Mart, Inc. * | | |
| | |
| | |
Boot Barn Holdings, Inc. * | | |
| | |
| | |
Camping World Holdings, Inc., Class A | | |
Children's Place, Inc. *(a) | | |
| | |
ContextLogic, Inc., Class A * | | |
| | |
Designer Brands, Inc., Class A | | |
| | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
GameStop Corp., Class A * | | |
| | |
| | |
Haverty Furniture Cos., Inc. | | |
| | |
| | |
| | |
| | |
National Vision Holdings, Inc. * | | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
OneWater Marine, Inc., Class A * | | |
Petco Health & Wellness Co., Inc. * | | |
| | |
| | |
| | |
Sally Beauty Holdings, Inc. * | | |
| | |
| | |
| | |
Sonic Automotive, Inc., Class A | | |
Sportsman's Warehouse Holdings, Inc. * | | |
Stitch Fix, Inc., Class A * | | |
| | |
| | |
| | |
Victoria's Secret & Co. * | | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 3.9% |
| | |
| | |
| | |
Century Communities, Inc. | | |
| | |
| | |
| | |
Ethan Allen Interiors, Inc. | | |
G-III Apparel Group Ltd. * | | |
| | |
Green Brick Partners, Inc. * | | |
| | |
Hovnanian Enterprises, Inc., Class A * | | |
Installed Building Products, Inc. | | |
| | |
| | |
| | |
Levi Strauss & Co., Class A | | |
| | |
| | |
Malibu Boats, Inc., Class A * | | |
| | |
| | |
| | |
Peloton Interactive, Inc., Class A * | | |
| | |
Smith & Wesson Brands, Inc. | | |
| | |
| | |
| | |
| | |
Topgolf Callaway Brands Corp. * | | |
Tupperware Brands Corp. *(a)(b) | | |
Under Armour, Inc., Class A * | | |
| | |
Wolverine World Wide, Inc. | | |
Worthington Enterprises, Inc. | | |
| | |
| | |
|
|
| | |
Adtalem Global Education, Inc. * | | |
| | |
Arcos Dorados Holdings, Inc., Class A | | |
| | |
| | |
36
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Small Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Brinker International, Inc. * | | |
| | |
| | |
| | |
Choice Hotels International, Inc. (a) | | |
| | |
Cracker Barrel Old Country Store, Inc. | | |
Dave & Buster's Entertainment, Inc. * | | |
| | |
| | |
DoorDash, Inc., Class A * | | |
| | |
| | |
Golden Entertainment, Inc. | | |
Graham Holdings Co., Class B | | |
Grand Canyon Education, Inc. * | | |
| | |
Hilton Grand Vacations, Inc. * | | |
Hyatt Hotels Corp., Class A | | |
International Game Technology PLC | | |
| | |
| | |
| | |
| | |
Papa John's International, Inc. | | |
| | |
Planet Fitness, Inc., Class A * | | |
Red Rock Resorts, Inc., Class A | | |
Royal Caribbean Cruises Ltd. * | | |
| | |
Strategic Education, Inc. | | |
| | |
| | |
| | |
United Parks & Resorts, Inc. * | | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
|
Consumer Staples Distribution & Retail 0.7% |
| | |
| | |
Grocery Outlet Holding Corp. * | | |
Ingles Markets, Inc., Class A | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
California Resources Corp. | | |
| | |
| | |
| | |
| | |
Comstock Resources, Inc. (a) | | |
| | |
| | |
| | |
Crescent Energy Co., Class A | | |
| | |
| | |
Diamond Offshore Drilling, Inc. * | | |
| | |
| | |
| | |
Expro Group Holdings NV * | | |
| | |
| | |
Helix Energy Solutions Group, Inc. * | | |
| | |
International Seaways, Inc. | | |
| | |
| | |
Magnolia Oil & Gas Corp., Class A | | |
| | |
| | |
Newpark Resources, Inc. * | | |
| | |
| | |
Oceaneering International, Inc. * | | |
Oil States International, Inc. * | | |
Par Pacific Holdings, Inc. * | | |
Patterson-UTI Energy, Inc. | | |
| | |
| | |
| | |
REX American Resources Corp. * | | |
| | |
| | |
Select Water Solutions, Inc. | | |
| | |
| | |
| | |
| | |
Teekay Tankers Ltd., Class A | | |
| | |
| | |
Tsakos Energy Navigation Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Weatherford International PLC | | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 8.3% |
| | |
| | |
Alexander & Baldwin, Inc. | | |
American Assets Trust, Inc. | | |
American Homes 4 Rent, Class A | | |
Americold Realty Trust, Inc. | | |
Apple Hospitality REIT, Inc. | | |
| | |
Broadstone Net Lease, Inc. | | |
| | |
CBL & Associates Properties, Inc. | | |
| | |
| | |
| | |
| | |
| | |
DiamondRock Hospitality Co. | | |
Diversified Healthcare Trust (b) | | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
37
Schwab Fundamental U.S. Small Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
Easterly Government Properties, Inc. | | |
EastGroup Properties, Inc. | | |
| | |
Empire State Realty Trust, Inc., Class A | | |
| | |
Equity LifeStyle Properties, Inc. | | |
Essential Properties Realty Trust, Inc. | | |
Federal Realty Investment Trust | | |
First Industrial Realty Trust, Inc. | | |
Four Corners Property Trust, Inc. | | |
| | |
| | |
Healthcare Realty Trust, Inc. | | |
Highwoods Properties, Inc. | | |
Hudson Pacific Properties, Inc. | | |
Independence Realty Trust, Inc. | | |
Industrial Logistics Properties Trust | | |
Innovative Industrial Properties, Inc. | | |
InvenTrust Properties Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
National Health Investors, Inc. | | |
National Storage Affiliates Trust | | |
| | |
Office Properties Income Trust | | |
Omega Healthcare Investors, Inc. | | |
| | |
| | |
| | |
| | |
Phillips Edison & Co., Inc. | | |
Piedmont Office Realty Trust, Inc., Class A | | |
| | |
| | |
Retail Opportunity Investments Corp. | | |
Rexford Industrial Realty, Inc. | | |
| | |
Ryman Hospitality Properties, Inc. | | |
Sabra Health Care REIT, Inc. | | |
| | |
| | |
| | |
| | |
Sunstone Hotel Investors, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Xenia Hotels & Resorts, Inc. | | |
| | |
|
|
| | |
Apollo Commercial Real Estate Finance, Inc. | | |
Apollo Global Management, Inc. | | |
Arbor Realty Trust, Inc. (a) | | |
ARES Management Corp., Class A | | |
Artisan Partners Asset Management, Inc., Class A | | |
| | |
B Riley Financial, Inc. (a) | | |
| | |
Blackstone Mortgage Trust, Inc., Class A (a) | | |
Brightsphere Investment Group, Inc. | | |
BrightSpire Capital, Inc. | | |
| | |
| | |
Claros Mortgage Trust, Inc. | | |
| | |
Coinbase Global, Inc., Class A * | | |
Compass Diversified Holdings | | |
Credit Acceptance Corp. * | | |
Diamond Hill Investment Group, Inc. | | |
Donnelley Financial Solutions, Inc. * | | |
Encore Capital Group, Inc. * | | |
Enova International, Inc. * | | |
| | |
Euronet Worldwide, Inc. * | | |
| | |
FactSet Research Systems, Inc. | | |
Federal Agricultural Mortgage Corp., Class C | | |
| | |
| | |
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 | | |
| | |
Interactive Brokers Group, Inc., Class A | | |
KKR Real Estate Finance Trust, Inc. | | |
| | |
MarketAxess Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
New York Mortgage Trust, Inc. | | |
NMI Holdings, Inc., Class A * | | |
Pagseguro Digital Ltd., Class A * | | |
PennyMac Financial Services, Inc. | | |
PennyMac Mortgage Investment Trust | | |
| | |
PJT Partners, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Rocket Cos., Inc., Class A * | | |
StepStone Group, Inc., Class A | | |
| | |
| | |
| | |
| | |
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. | | |
| | |
38
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Small Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 2.3% |
| | |
| | |
Boston Beer Co., Inc., Class A * | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
Coca-Cola Consolidated, Inc. | | |
| | |
Fresh Del Monte Produce, Inc. | | |
Hain Celestial Group, Inc. * | | |
| | |
John B Sanfilippo & Son, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Seneca Foods Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Health Care Equipment & Services 4.2% |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
| | |
| | |
AMN Healthcare Services, Inc. * | | |
| | |
| | |
Brookdale Senior Living, Inc. * | | |
| | |
Clover Health Investments Corp. * | | |
| | |
| | |
Cross Country Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Evolent Health, Inc., Class A * | | |
| | |
Globus Medical, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Integra LifeSciences Holdings Corp. * | | |
| | |
| | |
| | |
Merit Medical Systems, Inc. * | | |
| | |
| | |
National HealthCare Corp. | | |
| | |
OmniAb, Inc., Class A *(c) | | |
OmniAb, Inc., Class B *(c) | | |
| | |
| | |
Option Care Health, Inc. * | | |
| | |
| | |
Pediatrix Medical Group, Inc. * | | |
| | |
| | |
Privia Health Group, Inc. * | | |
| | |
| | |
Select Medical Holdings Corp. | | |
| | |
| | |
U.S. Physical Therapy, Inc. | | |
| | |
Veeva Systems, Inc., Class A * | | |
| | |
| | |
|
Household & Personal Products 1.1% |
| | |
Central Garden & Pet Co. * | | |
Central Garden & Pet Co., Class A * | | |
| | |
Edgewell Personal Care Co. | | |
| | |
| | |
| | |
| | |
Nu Skin Enterprises, Inc., Class A | | |
Reynolds Consumer Products, Inc. | | |
Spectrum Brands Holdings, Inc. | | |
USANA Health Sciences, Inc. * | | |
| | |
| | |
|
|
Ambac Financial Group, Inc. * | | |
| | |
| | |
Axis Capital Holdings Ltd. | | |
| | |
| | |
| | |
Erie Indemnity Co., Class A | | |
Horace Mann Educators Corp. | | |
James River Group Holdings Ltd. | | |
| | |
Kinsale Capital Group, Inc. | | |
| | |
| | |
RenaissanceRe Holdings Ltd. | | |
| | |
Safety Insurance Group, Inc. | | |
Selective Insurance Group, Inc. | | |
Stewart Information Services Corp. | | |
| | |
Universal Insurance Holdings, Inc. | | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
39
Schwab Fundamental U.S. Small Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
White Mountains Insurance Group Ltd. | | |
| | |
|
|
| | |
Alpha Metallurgical Resources, Inc. | | |
| | |
| | |
Ardagh Metal Packaging SA | | |
| | |
| | |
| | |
| | |
| | |
Carpenter Technology Corp. | | |
| | |
| | |
Compass Minerals International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Haynes International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mercer International, Inc. | | |
| | |
Minerals Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Radius Recycling, Inc., Class A | | |
Rayonier Advanced Materials, Inc. * | | |
| | |
| | |
| | |
Sensient Technologies Corp. | | |
| | |
| | |
| | |
Summit Materials, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
Media & Entertainment 3.4% |
AMC Entertainment Holdings, Inc., Class A *(a) | | |
AMC Networks, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Cinemark Holdings, Inc. * | | |
Clear Channel Outdoor Holdings, Inc. * | | |
EchoStar Corp., Class A * | | |
Endeavor Group Holdings, Inc., Class A (a) | | |
EW Scripps Co., Class A * | | |
| | |
| | |
| | |
iHeartMedia, Inc., Class A * | | |
John Wiley & Sons, Inc., Class A | | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp.-Liberty Formula One, Class C * | | |
Lions Gate Entertainment Corp., Class A * | | |
Live Nation Entertainment, Inc. * | | |
| | |
New York Times Co., Class A | | |
Pinterest, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Sirius XM Holdings, Inc. (a) | | |
| | |
| | |
| | |
| | |
| | |
Trade Desk, Inc., Class A * | | |
| | |
Warner Music Group Corp., Class A | | |
| | |
| | |
| | |
ZoomInfo Technologies, Inc. * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 2.7% |
| | |
Amphastar Pharmaceuticals, Inc. * | | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
Corcept Therapeutics, Inc. * | | |
Elanco Animal Health, Inc. * | | |
Emergent BioSolutions, Inc. *(b) | | |
| | |
| | |
Halozyme Therapeutics, Inc. * | | |
| | |
| | |
Ironwood Pharmaceuticals, Inc. * | | |
40
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Small Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
Jazz Pharmaceuticals PLC * | | |
Ligand Pharmaceuticals, Inc. * | | |
| | |
| | |
Neurocrine Biosciences, Inc. * | | |
Pacira BioSciences, Inc. * | | |
Prestige Consumer Healthcare, Inc. * | | |
| | |
Royalty Pharma PLC, Class A | | |
Supernus Pharmaceuticals, Inc. * | | |
United Therapeutics Corp. * | | |
Vir Biotechnology, Inc. * | | |
| | |
|
Real Estate Management & Development 1.3% |
| | |
| | |
Cushman & Wakefield PLC * | | |
DigitalBridge Group, Inc. | | |
eXp World Holdings, Inc. (a) | | |
Howard Hughes Holdings, Inc. * | | |
Kennedy-Wilson Holdings, Inc. | | |
| | |
Newmark Group, Inc., Class A | | |
Opendoor Technologies, Inc. * | | |
Seaport Entertainment Group, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 2.5% |
Allegro MicroSystems, Inc. * | | |
Alpha & Omega Semiconductor Ltd. * | | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Kulicke & Soffa Industries, Inc. | | |
Lattice Semiconductor Corp. * | | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Silicon Laboratories, Inc. * | | |
SMART Global Holdings, Inc. * | | |
SolarEdge Technologies, Inc. * | | |
| | |
Ultra Clean Holdings, Inc. * | | |
| | |
| | |
| | |
|
|
| | |
Alarm.com Holdings, Inc. * | | |
AppLovin Corp., Class A * | | |
| | |
Bentley Systems, Inc., Class B | | |
| | |
| | |
CommVault Systems, Inc. * | | |
Consensus Cloud Solutions, Inc. * | | |
Dolby Laboratories, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
| | |
LiveRamp Holdings, Inc. * | | |
Manhattan Associates, Inc. * | | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
RingCentral, Inc., Class A * | | |
| | |
Snowflake, Inc., Class A * | | |
| | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
| | |
|
Technology Hardware & Equipment 3.7% |
| | |
Advanced Energy Industries, Inc. | | |
| | |
| | |
Benchmark Electronics, Inc. | | |
| | |
| | |
CommScope Holding Co., Inc. * | | |
Comtech Telecommunications Corp. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Kimball Electronics, Inc. * | | |
| | |
| | |
Lumentum Holdings, Inc. * | | |
Methode Electronics, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Pure Storage, Inc., Class A * | | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
41
Schwab Fundamental U.S. Small Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
Super Micro Computer, Inc. * | | |
| | |
| | |
| | |
Vishay Intertechnology, Inc. | | |
| | |
| | |
|
Telecommunication Services 0.3% |
| | |
Cogent Communications Holdings, Inc. | | |
Consolidated Communications Holdings, Inc. * | | |
| | |
Iridium Communications, Inc. | | |
Liberty Latin America Ltd., Class C * | | |
Shenandoah Telecommunications Co. | | |
| | |
| | |
|
|
Air Transport Services Group, Inc. * | | |
| | |
| | |
American Airlines Group, Inc. * | | |
| | |
| | |
Covenant Logistics Group, Inc., Class A | | |
| | |
| | |
Genco Shipping & Trading Ltd. | | |
Global Ship Lease, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
| | |
United Airlines Holdings, Inc. * | | |
| | |
| | |
|
|
| | |
American States Water Co. | | |
Atlantica Sustainable Infrastructure PLC | | |
| | |
| | |
| | |
California Water Service Group | | |
| | |
Chesapeake Utilities Corp. | | |
Clearway Energy, Inc., Class C | | |
Essential Utilities, Inc. | | |
Hawaiian Electric Industries, Inc. * | | |
| | |
| | |
New Jersey Resources Corp. | | |
Northwest Natural Holding Co. | | |
Northwestern Energy Group, Inc. | | |
| | |
| | |
| | |
| | |
Southwest Gas Holdings, Inc. | | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $7,521,193,613) | |
| | |
SHORT-TERM INVESTMENTS 0.6% 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 $52,099,305) | |
Total Investments in Securities
(Cost $7,573,292,918) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
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 $42,448,329. |
| 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 |
42
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Small Company ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
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 February 29, 2024, 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 0.5% OF NET ASSETS |
|
Consumer Durables & Apparel 0.1% |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
Equity Real Estate Investment Trusts (REITs) 0.2% |
Ashford Hospitality Trust, Inc. | | | | | | | | |
Diversified Healthcare Trust | | | | | | | | |
| | | | | | | | |
|
Pharmaceuticals, Biotechnology & Life Sciences 0.2% |
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) | |
| | | | |
| | | | |
Health Care Equipment & Services | | | | |
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 Fundamental Index ETFs | Semiannual Holdings and Financial Statements
43
Schwab Fundamental U.S. Small Company ETF
Statement of Assets and Liabilities
As of August 31, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $22,537,382) including securities on loan of $3,243,360 | | |
Investments in securities, at value - unaffiliated issuers (cost $7,550,755,536) including securities on loan of $39,204,969 | | |
| | |
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). |
44
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental U.S. Small Company ETF
Statement of Operations
For the period March 1, 2024 through August 31, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $25,075) | | |
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 Fundamental Index ETFs | Semiannual Holdings and Financial Statements
45
Schwab Fundamental U.S. Small Company ETF
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
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). |
46
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International 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. |
| Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
47
Schwab Fundamental International Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited)
| | |
COMMON STOCKS 98.5% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Commonwealth Bank of Australia | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Insurance Australia Group Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
National Australia Bank Ltd. | | |
Northern Star Resources Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Treasury Wine Estates Ltd. | | |
| | |
| | |
| | |
| | |
Woodside Energy Group Ltd. | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Raiffeisen Bank International AG | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Groupe Bruxelles Lambert NV | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Agnico Eagle Mines Ltd./Mines Agnico Eagle Limitee | | |
Algonquin Power & Utilities Corp. | | |
Alimentation Couche-Tard, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Bausch Health Cos., Inc. * | | |
| | |
| | |
Brookfield Infrastructure Corp., Class A (a) | | |
Canadian Imperial Bank of Commerce | | |
Canadian National Railway Co. | | |
Canadian Natural Resources Ltd. | | |
Canadian Pacific Kansas City Ltd. | | |
Canadian Tire Corp. Ltd., Class A | | |
CCL Industries, Inc., Class B | | |
| | |
| | |
| | |
Constellation Software, Inc. | | |
| | |
| | |
| | |
| | |
Fairfax Financial Holdings Ltd. | | |
Finning International, Inc. | | |
First Quantum Minerals Ltd. * | | |
| | |
| | |
| | |
| | |
Great-West Lifeco, Inc. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
48
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
Magna International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Northland Power, Inc. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Restaurant Brands International, Inc. | | |
RioCan Real Estate Investment Trust | | |
Rogers Communications, Inc., Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Teck Resources Ltd., Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
West Fraser Timber Co. Ltd. | | |
Wheaton Precious Metals Corp. | | |
| | |
| | |
| | |
|
|
| | |
GCL Technology Holdings Ltd. * | | |
| | |
SITC International Holdings Co. Ltd. | | |
Xinyi Glass Holdings Ltd. | | |
| | |
|
|
AP Moller - Maersk AS, Class A | | |
AP Moller - Maersk AS, Class B | | |
| | |
| | |
| | |
| | |
| | |
Novonesis (Novozymes) B, Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Cie Generale des Etablissements Michelin SCA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
LVMH Moet Hennessy Louis Vuitton SE | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
49
Schwab Fundamental International Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
Unibail-Rodamco-Westfield * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Bayerische Motoren Werke AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fresenius Medical Care AG | | |
Fresenius SE & Co. KGaA * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | | |
ProSiebenSat.1 Media SE (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
BOC Hong Kong Holdings Ltd. | | |
| | |
| | |
Galaxy Entertainment Group Ltd. | | |
| | |
| | |
Hong Kong & China Gas Co. Ltd. | | |
Hong Kong Exchanges & Clearing Ltd. | | |
Hongkong Land Holdings Ltd. | | |
Jardine Matheson Holdings Ltd. | | |
| | |
| | |
| | |
New World Development Co. Ltd. (a) | | |
Orient Overseas International Ltd. | | |
Pacific Basin Shipping Ltd. | | |
| | |
Sun Hung Kai Properties Ltd. | | |
Swire Pacific Ltd., A Shares | | |
Techtronic Industries Co. Ltd. | | |
| | |
Wharf Real Estate Investment Co. Ltd. | | |
Yue Yuen Industrial Holdings Ltd. | | |
| | |
|
|
| | |
Bank of Ireland Group PLC | | |
| | |
| | |
Flutter Entertainment PLC * | | |
| | |
| | |
| | |
James Hardie Industries PLC * | | |
| | |
| | |
| | |
| | |
Ryanair Holdings PLC, ADR | | |
| | |
| | |
| | |
|
|
| | |
|
|
| | |
| | |
Check Point Software Technologies Ltd. * | | |
| | |
| | |
Israel Discount Bank Ltd., A Shares | | |
| | |
Teva Pharmaceutical Industries Ltd. * | | |
50
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
ZIM Integrated Shipping Services Ltd. (a) | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mediobanca Banca di Credito Finanziario SpA | | |
| | |
| | |
| | |
| | |
| | |
| | |
Terna - Rete Elettrica Nazionale | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Asahi Group Holdings Ltd. | | |
| | |
| | |
Bandai Namco Holdings, Inc. | | |
| | |
| | |
| | |
Central Japan Railway Co. | | |
Chubu Electric Power Co., Inc. | | |
Chugai Pharmaceutical Co. Ltd. | | |
Chugoku Electric Power Co., Inc. | | |
Coca-Cola Bottlers Japan Holdings, Inc. | | |
| | |
Cosmo Energy Holdings Co. Ltd. | | |
Dai Nippon Printing Co. Ltd. | | |
| | |
| | |
| | |
Dai-ichi Life Holdings, Inc. | | |
| | |
| | |
Daito Trust Construction Co. Ltd. | | |
Daiwa House Industry Co. Ltd. | | |
Daiwa Securities Group, Inc. | | |
Daiwabo Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Electric Power Development Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Fuji Media Holdings, Inc. | | |
| | |
| | |
| | |
Furukawa Electric Co. Ltd. | | |
Hakuhodo DY Holdings, Inc. | | |
Hankyu Hanshin Holdings, Inc. | | |
| | |
| | |
| | |
Hitachi Construction Machinery Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Iida Group Holdings Co. Ltd. | | |
| | |
| | |
Isetan Mitsukoshi Holdings Ltd. | | |
| | |
| | |
| | |
| | |
Japan Exchange Group, Inc. | | |
| | |
Japan Post Holdings Co. Ltd. | | |
Japan Post Insurance Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Kansai Electric Power Co., Inc. | | |
| | |
| | |
Kawasaki Heavy Industries Ltd. | | |
Kawasaki Kisen Kaisha Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Kintetsu Group Holdings Co. Ltd. | | |
| | |
| | |
Koito Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
51
Schwab Fundamental International Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
Kurita Water Industries Ltd. | | |
| | |
Kyushu Electric Power Co., Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mitsubishi Chemical Group Corp. | | |
| | |
Mitsubishi Electric Corp. | | |
Mitsubishi Estate Co. Ltd. | | |
Mitsubishi Gas Chemical Co., Inc. | | |
Mitsubishi Heavy Industries Ltd. | | |
Mitsubishi Materials Corp. | | |
| | |
Mitsubishi UFJ Financial Group, Inc. | | |
| | |
| | |
| | |
Mitsui Mining & Smelting Co. Ltd. | | |
| | |
Mizuho Financial Group, Inc. | | |
Morinaga Milk Industry Co. Ltd. | | |
MS&AD Insurance Group Holdings, Inc. | | |
Murata Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
NIPPON EXPRESS HOLDINGS, Inc. | | |
Nippon Paint Holdings Co. Ltd. | | |
Nippon Paper Industries Co. Ltd. | | |
Nippon Sanso Holdings Corp. | | |
| | |
Nippon Telegraph & Telephone Corp. | | |
| | |
| | |
| | |
Nisshin Seifun Group, Inc. | | |
Nissin Foods Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Nomura Research Institute Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ono Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Pan Pacific International Holdings Corp. | | |
| | |
| | |
Recruit Holdings Co. Ltd. | | |
Renesas Electronics Corp. | | |
| | |
| | |
| | |
| | |
| | |
Ryohin Keikaku Co. Ltd. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Sekisui Chemical Co. Ltd. | | |
| | |
Seven & i Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Shin-Etsu Chemical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Stanley Electric 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 Realty & Development Co. Ltd. | | |
Sumitomo Rubber Industries Ltd. | | |
| | |
Suntory Beverage & Food Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Takeda Pharmaceutical Co. Ltd. | | |
| | |
52
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
Tohoku Electric Power Co., Inc. | | |
Tokio Marine Holdings, Inc. | | |
Tokyo Electric Power Co. Holdings, Inc. * | | |
| | |
| | |
| | |
Tokyu Fudosan Holdings Corp. | | |
| | |
| | |
| | |
| | |
Toyo Seikan Group Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
B&M European Value Retail SA | | |
| | |
Millicom International Cellular SA * | | |
| | |
| | |
| | |
| | |
|
|
Golden Agri-Resources Ltd. | | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Koninklijke Ahold Delhaize NV | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Bank Polska Kasa Opieki SA | | |
| | |
| | |
PGE Polska Grupa Energetyczna SA * | | |
Powszechna Kasa Oszczednosci Bank Polski SA | | |
Powszechny Zaklad Ubezpieczen SA | | |
| | |
|
|
| | |
| | |
| | |
| | |
|
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
53
Schwab Fundamental International Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
|
BNK Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Doosan Enerbility Co. Ltd. * | | |
| | |
GS Engineering & Construction Corp. * | | |
| | |
Hana Financial Group, Inc. | | |
Hankook Tire & Technology Co. Ltd. | | |
| | |
| | |
| | |
| | |
Hyundai Engineering & Construction Co. Ltd. | | |
| | |
Hyundai Marine & Fire Insurance Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Korea Electric Power Corp. | | |
| | |
| | |
Korean Air Lines Co. Ltd. | | |
| | |
| | |
Kumho Petrochemical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Posco International Corp. | | |
| | |
Samsung Electro-Mechanics Co. Ltd. | | |
Samsung Electronics Co. Ltd. | | |
Samsung Fire & Marine Insurance Co. Ltd. | | |
Samsung Life Insurance Co. Ltd. | | |
| | |
| | |
Shinhan Financial Group Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Woori Financial Group, Inc. | | |
| | |
|
| | |
|
| | |
| | |
Jardine Cycle & Carriage Ltd. | | |
| | |
Oversea-Chinese Banking Corp. Ltd. | | |
| | |
Singapore Telecommunications Ltd. | | |
United Overseas Bank Ltd. | | |
| | |
Wilmar International Ltd. | | |
| | |
|
|
| | |
| | |
ACS Actividades de Construccion y Servicios SA | | |
| | |
| | |
Banco Bilbao Vizcaya Argentaria SA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Industria de Diseno Textil SA | | |
International Consolidated Airlines Group SA * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Electrolux AB, B Shares * | | |
| | |
| | |
| | |
H & M Hennes & Mauritz AB, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
Skandinaviska Enskilda Banken AB, A Shares | | |
| | |
| | |
| | |
| | |
Svenska Cellulosa AB SCA, B Shares | | |
54
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
Svenska Handelsbanken AB, A Shares | | |
Svenska Handelsbanken AB, B Shares (a) | | |
| | |
| | |
Telefonaktiebolaget LM Ericsson, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Chocoladefabriken Lindt & Spruengli AG | | |
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates | | |
Cie Financiere Richemont SA, Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Kuehne & Nagel International AG | | |
Logitech International SA | | |
| | |
| | |
| | |
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 | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Berkeley Group Holdings PLC | | |
| | |
British American Tobacco PLC | | |
| | |
| | |
| | |
| | |
CK Hutchison Holdings Ltd. | | |
Coca-Cola Europacific Partners PLC | | |
| | |
| | |
| | |
| | |
Direct Line Insurance Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
InterContinental Hotels Group PLC | | |
International Distribution Services PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
Legal & General Group PLC | | |
| | |
London Stock Exchange Group PLC | | |
| | |
Marks & Spencer Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Phoenix Group Holdings PLC | | |
| | |
Reckitt Benckiser Group PLC | | |
| | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
55
Schwab Fundamental International Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Utilities Group PLC | | |
| | |
| | |
| | |
|
|
| | |
| | |
Ferguson Enterprises, Inc. | | |
Lululemon Athletica, Inc. * | | |
| | |
Total Common Stocks
(Cost $10,762,216,999) | |
|
PREFERRED STOCKS 1.1% OF NET ASSETS |
|
|
Bayerische Motoren Werke AG | | |
| | |
| | |
| | |
| | |
| | |
|
|
Telecom Italia SpA - RSP * | | |
|
|
| | |
| | |
| | |
Samsung Electronics Co. Ltd. | | |
| | |
|
|
| | |
Total Preferred Stocks
(Cost $147,521,937) | |
|
WARRANTS 0.0% OF NET ASSETS |
|
|
Constellation Software, Inc. |
| | |
| |
| | |
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 $56,200,658) | |
Total Investments in Securities
(Cost $10,965,939,594) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
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 $34,844,388. |
| 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. |
| American Depositary Receipt |
| Global Depositary Receipt |
| Real Estate Investment Trust |
| Risparmio (Savings Shares) |
56
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (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 Fundamental Index ETFs | Semiannual Holdings and Financial Statements
57
Schwab Fundamental International Equity ETF
Statement of Assets and Liabilities
As of August 31, 2024; unaudited
|
Investments in securities, at value - unaffiliated issuers (cost $10,965,939,594) including securities on loan of $34,844,388 | | |
Foreign currency, at value (cost $11,516,015) | | |
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 | | |
| | |
58
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Equity ETF
Statement of Operations
For the period March 1, 2024 through August 31, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $28,637,278) | | |
| | |
Interest received from securities - unaffiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains 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 Fundamental Index ETFs | Semiannual Holdings and Financial Statements
59
Schwab Fundamental International Equity ETF
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
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 |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
60
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Small 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. |
| Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
61
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited)
| | |
COMMON STOCKS 99.4% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Bendigo & Adelaide Bank Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Cleanaway Waste Management Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Domino's Pizza Enterprises Ltd. | | |
| | |
| | |
| | |
| | |
FleetPartners Group Ltd. * | | |
Flight Centre Travel Group Ltd. (a) | | |
| | |
| | |
| | |
Harvey Norman Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Magellan Financial Group Ltd. | | |
McMillan Shakespeare Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Nine Entertainment Co. Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Platinum Asset Management Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Reliance Worldwide Corp. Ltd. | | |
| | |
| | |
Sandfire Resources Ltd. * | | |
| | |
Seven Group Holdings Ltd. | | |
| | |
| | |
Star Entertainment Group Ltd. *(b) | | |
| | |
| | |
| | |
| | |
Ventia Services Group Pty. Ltd. | | |
| | |
Washington H Soul Pattinson & Co. Ltd. | | |
| | |
West African Resources Ltd. * | | |
| | |
| | |
| | |
|
|
| | |
AT&S Austria Technologie & Systemtechnik AG *(a) | | |
| | |
| | |
| | |
Mayr Melnhof Karton AG (a) | | |
Oesterreichische Post AG (a) | | |
| | |
Schoeller-Bleckmann Oilfield Equipment AG | | |
| | |
| | |
| | |
| | |
Vienna Insurance Group AG Wiener Versicherung Gruppe | | |
| | |
|
|
Ackermans & van Haaren NV | | |
| | |
| | |
| | |
| | |
| | |
| | |
62
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Titan Cement International SA | | |
| | |
| | |
|
|
| | |
|
|
| | |
| | |
| | |
Ag Growth International, Inc. | | |
| | |
Alamos Gold, Inc., Class A | | |
| | |
Allied Properties Real Estate Investment Trust | | |
| | |
| | |
Artis Real Estate Investment Trust (a) | | |
| | |
| | |
| | |
Badger Infrastructure Solution | | |
| | |
| | |
| | |
| | |
| | |
Boardwalk Real Estate Investment Trust | | |
Bombardier, Inc., Class B * | | |
| | |
Boyd Group Services, Inc. | | |
Brookfield Business Corp., Class A | | |
Brookfield Infrastructure Corp., Class A (a) | | |
Brookfield Reinsurance Ltd. * | | |
Brookfield Renewable Corp., Class A | | |
| | |
| | |
| | |
Canaccord Genuity Group, Inc. | | |
Canada Goose Holdings, Inc. * | | |
Canadian Apartment Properties REIT | | |
Canadian Solar, Inc. *(a) | | |
Canadian Utilities Ltd., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
CES Energy Solutions Corp. | | |
Chartwell Retirement Residences | | |
Chemtrade Logistics Income Fund | | |
China Gold International Resources Corp. Ltd. * | | |
Choice Properties Real Estate Investment Trust | | |
| | |
| | |
| | |
Cogeco Communications, Inc. | | |
| | |
Colliers International Group, Inc. | | |
Crombie Real Estate Investment Trust | | |
CT Real Estate Investment Trust | | |
Curaleaf Holdings, Inc. * | | |
| | |
Descartes Systems Group, Inc. * | | |
Doman Building Materials Group Ltd. | | |
Dream Industrial Real Estate Investment Trust | | |
Dundee Precious Metals, Inc. | | |
| | |
Element Fleet Management Corp. | | |
| | |
| | |
Ensign Energy Services, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
First Capital Real Estate Investment Trust | | |
First Majestic Silver Corp. | | |
| | |
| | |
| | |
| | |
| | |
Granite Real Estate Investment Trust | | |
H&R Real Estate Investment Trust | | |
| | |
| | |
| | |
Innergex Renewable Energy, Inc. | | |
| | |
International Petroleum Corp. *(c) | | |
International Petroleum Corp. *(c) | | |
| | |
Killam Apartment Real Estate Investment Trust | | |
Labrador Iron Ore Royalty Corp. | | |
Lassonde Industries, Inc., Class A | | |
Laurentian Bank of Canada | | |
| | |
Major Drilling Group International, Inc. * | | |
| | |
Martinrea International, Inc. | | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
63
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
North American Construction Group Ltd. | | |
| | |
NorthWest Healthcare Properties Real Estate Investment Trust | | |
| | |
| | |
| | |
Pan American Silver Corp. | | |
Paramount Resources Ltd., Class A | | |
| | |
| | |
Peyto Exploration & Development Corp. | | |
| | |
Precision Drilling Corp. * | | |
Premium Brands Holdings Corp. | | |
| | |
| | |
| | |
| | |
RioCan Real Estate Investment Trust | | |
| | |
Secure Energy Services, Inc. | | |
| | |
Sienna Senior Living, Inc. | | |
Sleep Country Canada Holdings, Inc. | | |
SmartCentres Real Estate Investment Trust | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tamarack Valley Energy Ltd. | | |
Teekay Tankers Ltd., Class A | | |
TELUS International CDA, Inc. * | | |
| | |
Torex Gold Resources, Inc. * | | |
| | |
Transcontinental, Inc., Class A | | |
| | |
| | |
Westshore Terminals Investment Corp. | | |
| | |
| | |
| | |
|
|
AAC Technologies Holdings, Inc. | | |
Alibaba Health Information Technology Ltd. * | | |
Bosideng International Holdings Ltd. | | |
Budweiser Brewing Co. APAC Ltd. | | |
China Medical System Holdings Ltd. | | |
China Water Affairs Group Ltd. | | |
Chow Tai Fook Jewellery Group Ltd. | | |
| | |
Health & Happiness H&H International Holdings Ltd. | | |
Hopson Development Holdings Ltd. * | | |
Jinchuan Group International Resources Co. Ltd. (a) | | |
| | |
| | |
Kerry Logistics Network Ltd. | | |
Lee & Man Paper Manufacturing Ltd. | | |
Nexteer Automotive Group Ltd. | | |
Powerlong Real Estate Holdings Ltd. *(a) | | |
| | |
Theme International Holdings Ltd. | | |
Towngas Smart Energy Co. Ltd. * | | |
| | |
Want Want China Holdings Ltd. | | |
Xinyi Glass Holdings Ltd. | | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Novonesis (Novozymes) B, Class B | | |
| | |
Ringkjoebing Landbobank AS | | |
| | |
| | |
Scandinavian Tobacco Group AS, A Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Metsa Board OYJ, B Shares | | |
| | |
| | |
64
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Eutelsat Communications SACA *(a) | | |
| | |
Gaztransport Et Technigaz SA | | |
| | |
| | |
| | |
ID Logistics Group SACA * | | |
| | |
| | |
| | |
| | |
La Francaise des Jeux SAEM | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Television Francaise 1 SA | | |
| | |
Ubisoft Entertainment SA * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Carl Zeiss Meditec AG, Bearer Shares | | |
| | |
| | |
CompuGroup Medical SE & Co. KGaA | | |
CTS Eventim AG & Co. KGaA | | |
| | |
Deutsche Pfandbriefbank AG *(a) | | |
| | |
| | |
| | |
DWS Group GmbH & Co. KGaA | | |
| | |
| | |
| | |
Fraport AG Frankfurt Airport Services Worldwide * | | |
| | |
| | |
Heidelberger Druckmaschinen AG * | | |
| | |
| | |
| | |
| | |
Hornbach Holding AG & Co. KGaA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
ProSiebenSat.1 Media SE (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
65
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
Vitesco Technologies Group AG, Class A | | |
| | |
| | |
Wuestenrot & Wuerttembergische AG | | |
| | |
|
|
| | |
|
|
| | |
| | |
| | |
|
|
| | |
| | |
Brightoil Petroleum Holdings Ltd. *(b) | | |
Cafe de Coral Holdings Ltd. | | |
Cathay Pacific Airways Ltd. (a) | | |
CITIC Telecom International Holdings Ltd. | | |
CK Infrastructure Holdings Ltd. | | |
Cowell e Holdings, Inc. *(a) | | |
Dah Sing Financial Holdings Ltd. | | |
DFI Retail Group Holdings Ltd. | | |
Fortune Real Estate Investment Trust | | |
Futu Holdings Ltd., ADR * | | |
Giordano International Ltd. | | |
Grand Pharmaceutical Group Ltd. | | |
| | |
Hang Lung Properties Ltd. | | |
Henderson Land Development Co. Ltd. | | |
HK Electric Investments & HK Electric Investments Ltd. | | |
| | |
Hongkong Land Holdings Ltd. | | |
Hysan Development Co. Ltd. | | |
Johnson Electric Holdings Ltd. | | |
| | |
Kingboard Laminates Holdings Ltd. | | |
Luk Fook Holdings International Ltd. | | |
| | |
Melco International Development Ltd. * | | |
Melco Resorts & Entertainment Ltd., ADR * | | |
| | |
Nine Dragons Paper Holdings Ltd. * | | |
| | |
PAX Global Technology Ltd. | | |
| | |
| | |
Sino Biopharmaceutical Ltd. | | |
| | |
| | |
| | |
Stella International Holdings Ltd. | | |
Sun Art Retail Group Ltd. | | |
| | |
Texhong International Group Ltd. * | | |
United Energy Group Ltd. * | | |
| | |
United Laboratories International Holdings Ltd. | | |
Vitasoy International Holdings Ltd. | | |
| | |
| | |
| | |
| | |
|
|
| | |
|
|
Gulf Keystone Petroleum Ltd. | | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Glenveagh Properties PLC * | | |
| | |
| | |
Irish Continental Group PLC | | |
| | |
| | |
| | |
|
|
| | |
|
|
Alony Hetz Properties & Investments Ltd. | | |
| | |
| | |
Bezeq The Israeli Telecommunication Corp. Ltd. | | |
| | |
Clal Insurance Enterprises Holdings Ltd. * | | |
| | |
Delek Automotive Systems Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Fattal Holdings 1998 Ltd. * | | |
| | |
First International Bank Of Israel Ltd. | | |
Formula Systems 1985 Ltd. | | |
| | |
| | |
Harel Insurance Investments & Financial Services Ltd. | | |
| | |
| | |
| | |
66
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
Migdal Insurance & Financial Holdings Ltd. | | |
Mivne Real Estate KD Ltd. | | |
Mizrahi Tefahot Bank Ltd. | | |
| | |
| | |
| | |
Partner Communications Co. Ltd. * | | |
| | |
| | |
| | |
Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. | | |
| | |
| | |
| | |
Tower Semiconductor Ltd. * | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Banca Monte dei Paschi di Siena SpA | | |
Banca Popolare di Sondrio SpA | | |
| | |
| | |
| | |
CIR SpA-Compagnie Industriali * | | |
| | |
Danieli & C Officine Meccaniche SpA | | |
| | |
| | |
| | |
| | |
| | |
| | |
FinecoBank Banca Fineco SpA | | |
Infrastrutture Wireless Italiane SpA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Recordati Industria Chimica e Farmaceutica SpA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
Advance Residence Investment Corp. | | |
| | |
AEON Financial Service Co. Ltd. (a) | | |
| | |
| | |
AEON REIT Investment Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Bando Chemical Industries Ltd. | | |
BayCurrent Consulting, Inc. | | |
| | |
Bell System24 Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Canon Marketing Japan, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Chugin Financial Group, Inc. | | |
Chugoku Marine Paints Ltd. | | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
67
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
Comforia Residential REIT, Inc. | | |
Concordia Financial Group Ltd. | | |
Cosmos Pharmaceutical Corp. | | |
Create SD Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Daiki Aluminium Industry Co. Ltd. | | |
Daikokutenbussan Co. Ltd. | | |
| | |
| | |
Daishi Hokuetsu Financial Group, Inc. | | |
Daiwa House REIT Investment Corp. | | |
Daiwa Office Investment Corp. | | |
Daiwa Securities Living Investments Corp. | | |
DCM Holdings Co. Ltd. (a) | | |
| | |
| | |
| | |
| | |
| | |
Doutor Nichires Holdings Co. Ltd. | | |
| | |
| | |
DyDo Group Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Frontier Real Estate Investment Corp. | | |
| | |
| | |
| | |
Fuji Media Holdings, Inc. | | |
| | |
| | |
Fuji Seal International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Fukuoka Financial Group, Inc. | | |
| | |
Fukushima Galilei Co. Ltd. | | |
| | |
Fukuyama Transporting Co. Ltd. | | |
| | |
| | |
| | |
Futaba Industrial Co. Ltd. | | |
Fuyo General Lease Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
GungHo Online Entertainment, Inc. | | |
| | |
| | |
H.U. Group Holdings, Inc. | | |
| | |
| | |
Hagiwara Electric Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
Harmonic Drive Systems, Inc. | | |
| | |
| | |
Heiwa Real Estate Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Hisamitsu Pharmaceutical Co., Inc. (a) | | |
| | |
| | |
Hokkaido Electric Power Co., Inc. | | |
Hokkoku Financial Holdings, Inc. | | |
| | |
Hokuhoku Financial Group, Inc. | | |
Hokuriku Electric Power Co. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Inaba Denki Sangyo Co. Ltd. | | |
| | |
| | |
Industrial & Infrastructure Fund Investment Corp. | | |
| | |
Integrated Design & Engineering Holdings Co. Ltd. | | |
Internet Initiative Japan, Inc. | | |
Invincible Investment Corp. | | |
68
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
Iriso Electronics Co. Ltd. | | |
Ishihara Sangyo Kaisha Ltd. | | |
| | |
| | |
Itoham Yonekyu Holdings, Inc. | | |
| | |
| | |
| | |
J Front Retailing Co. Ltd. (a) | | |
| | |
| | |
| | |
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 Petroleum Exploration Co. Ltd. | | |
Japan Prime Realty Investment Corp. | | |
Japan Pulp & Paper Co. Ltd. | | |
Japan Real Estate Investment Corp. | | |
| | |
Japan Wool Textile Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Juroku Financial Group, Inc. | | |
| | |
| | |
Kaga Electronics Co. Ltd. | | |
| | |
| | |
Kaken Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Kanto Denka Kogyo Co. Ltd. | | |
| | |
| | |
Kawada Technologies, Inc. | | |
KDX Realty Investment Corp. | | |
| | |
| | |
| | |
Keisei Electric Railway Co. Ltd. | | |
| | |
| | |
| | |
Kissei Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
Kobayashi Pharmaceutical Co. Ltd. | | |
| | |
Koei Tecmo Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Konoike Transport Co. Ltd. | | |
| | |
KPP Group Holdings Co. Ltd. | | |
| | |
Kumiai Chemical Industry Co. Ltd. | | |
| | |
| | |
Kurita Water Industries Ltd. | | |
Kusuri No. Aoki Holdings Co. Ltd. | | |
| | |
| | |
Kyokuto Kaihatsu Kogyo Co. Ltd. | | |
Kyorin Pharmaceutical Co. Ltd. | | |
Kyoritsu Maintenance Co. Ltd. | | |
Kyoto Financial Group, Inc. | | |
| | |
| | |
Kyushu Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Makino Milling Machine Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Maruzen Showa Unyu Co. Ltd. | | |
| | |
| | |
| | |
McDonald's Holdings Co. Japan Ltd. | | |
| | |
Mebuki Financial Group, Inc. | | |
| | |
Megmilk Snow Brand Co. Ltd. | | |
| | |
Meiko Electronics Co. Ltd. | | |
Meisei Industrial Co. Ltd. | | |
MEITEC Group Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Mitsubishi HC Capital, Inc. | | |
Mitsubishi Logisnext Co. Ltd. | | |
Mitsubishi Logistics Corp. | | |
Mitsubishi Paper Mills Ltd. | | |
Mitsubishi Pencil Co. Ltd. | | |
Mitsubishi Shokuhin Co. Ltd. | | |
| | |
Mitsui DM Sugar Holdings Co. Ltd. | | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
69
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
Mitsui Matsushima Holdings Co. Ltd. (a) | | |
Mitsui-Soko Holdings Co. Ltd. | | |
Mitsuuroko Group Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
Mochida Pharmaceutical Co. Ltd. | | |
| | |
| | |
Mori Hills REIT Investment Corp. | | |
| | |
Morinaga Milk Industry Co. Ltd. | | |
| | |
Musashi Seimitsu Industry Co. Ltd. | | |
| | |
| | |
| | |
| | |
Nankai Electric Railway Co. Ltd. | | |
| | |
NEC Networks & System Integration Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nihon M&A Center Holdings, Inc. | | |
Nihon Parkerizing Co. Ltd. | | |
| | |
| | |
| | |
Nippon Accommodations Fund, Inc. | | |
Nippon Building Fund, Inc. | | |
| | |
| | |
| | |
Nippon Densetsu Kogyo Co. Ltd. | | |
Nippon Electric Glass Co. Ltd. | | |
| | |
Nippon Kanzai Holdings Co. Ltd. | | |
| | |
Nippon Light Metal Holdings Co. Ltd. | | |
Nippon Paint Holdings Co. Ltd. | | |
Nippon Prologis REIT, Inc. | | |
NIPPON REIT Investment Corp. | | |
| | |
Nippon Sanso Holdings Corp. | | |
| | |
Nippon Sheet Glass Co. Ltd. * | | |
| | |
| | |
| | |
Nippon Television Holdings, Inc. | | |
| | |
Nippon Yakin Kogyo Co. Ltd. | | |
| | |
Nishimatsu Construction Co. Ltd. | | |
Nishimatsuya Chain Co. Ltd. | | |
Nishi-Nippon Financial Holdings, Inc. | | |
| | |
Nishi-Nippon Railroad Co. Ltd. | | |
| | |
| | |
| | |
Nisshin Oillio Group Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nomura Real Estate Holdings, Inc. | | |
Nomura Real Estate Master Fund, Inc. | | |
| | |
| | |
| | |
| | |
| | |
NS United Kaiun Kaisha Ltd. | | |
| | |
| | |
NTT UD REIT Investment Corp. | | |
| | |
Odakyu Electric Railway Co. Ltd. | | |
| | |
| | |
| | |
| | |
Oki Electric Industry Co. Ltd. | | |
Okinawa Cellular Telephone Co. | | |
Okinawa Electric Power Co., Inc. | | |
| | |
| | |
| | |
| | |
Open House Group Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pacific Industrial Co. Ltd. | | |
| | |
PAL GROUP Holdings Co. Ltd. | | |
| | |
Paramount Bed Holdings Co. Ltd. | | |
| | |
| | |
Penta-Ocean Construction Co. Ltd. | | |
| | |
| | |
| | |
| | |
Pola Orbis Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
70
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rohto Pharmaceutical Co. Ltd. | | |
| | |
| | |
Ryoyo Ryosan Holdings, Inc. | | |
| | |
Saibu Gas Holdings Co. Ltd. | | |
| | |
Sakai Chemical Industry Co. Ltd. | | |
Sakai Moving Service Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sanki Engineering Co. Ltd. | | |
| | |
Sanoh Industrial Co. Ltd. | | |
Santen Pharmaceutical Co. Ltd. | | |
Sanyo Chemical Industries Ltd. | | |
| | |
Sanyo Special Steel Co. Ltd. | | |
| | |
| | |
Sawai Group Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
Sega Sammy Holdings, Inc. | | |
| | |
Seikitokyu Kogyo Co. Ltd. | | |
| | |
| | |
| | |
| | |
Senko Group Holdings Co. Ltd. | | |
Senshu Ikeda Holdings, Inc. | | |
| | |
| | |
| | |
Shibaura Machine Co. Ltd. | | |
| | |
Shikoku Electric Power Co., Inc. | | |
Shinagawa Refractories Co. Ltd. | | |
Shindengen Electric Manufacturing Co. Ltd. | | |
Shin-Etsu Polymer Co. Ltd. | | |
Shinko Electric Industries Co. Ltd. | | |
Shinmaywa Industries Ltd. | | |
| | |
| | |
Ship Healthcare Holdings, Inc. | | |
Shizuoka Financial Group, Inc. | | |
| | |
SHO-BOND Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
Sinfonia Technology Co. Ltd. | | |
| | |
SKY Perfect JSAT Holdings, Inc. | | |
Skylark Holdings Co. Ltd. * | | |
| | |
| | |
Sohgo Security Services Co. Ltd. | | |
| | |
Square Enix Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
Sumitomo Bakelite Co. Ltd. | | |
Sumitomo Densetsu Co. Ltd. | | |
Sumitomo Mitsui Construction Co. Ltd. | | |
Sumitomo Osaka Cement Co. Ltd. | | |
Sumitomo Pharma Co. Ltd. * | | |
| | |
Sumitomo Seika Chemicals Co. Ltd. | | |
Sumitomo Warehouse Co. Ltd. | | |
Sun Frontier Fudousan Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Tachibana Eletech Co. Ltd. | | |
| | |
| | |
Taihei Dengyo Kaisha Ltd. | | |
| | |
| | |
Takamatsu Construction Group Co. Ltd. | | |
| | |
| | |
Takasago Thermal Engineering Co. Ltd. | | |
| | |
Takeuchi Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tokai Tokyo Financial Holdings, Inc. | | |
| | |
| | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
71
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
Tokyo Kiraboshi Financial Group, Inc. | | |
Tokyo Ohka Kogyo Co. Ltd. | | |
| | |
Tokyo Steel Manufacturing Co. Ltd. | | |
| | |
| | |
Tokyu Construction Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Towa Pharmaceutical Co. Ltd. | | |
Toyo Construction Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tsubaki Nakashima Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Super Markets Holdings, Inc. (a) | | |
United Urban Investment Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Warabeya Nichiyo Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Yamae Group Holdings Co. Ltd. | | |
Yamaguchi Financial Group, Inc. | | |
Yamaichi Electronics Co. Ltd. | | |
| | |
| | |
| | |
| | |
Yodogawa Steel Works Ltd. | | |
Yokogawa Bridge Holdings Corp. | | |
| | |
| | |
| | |
Yoshinoya Holdings Co. Ltd. (a) | | |
| | |
| | |
| | |
| | |
| | |
ZERIA Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
|
|
| | |
| | |
International Workplace Group PLC | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Espirito Santo Financial Group SA *(b) | | |
Grand City Properties SA * | | |
| | |
Samsonite International SA | | |
| | |
| | |
| | |
|
|
| | |
AMG Critical Materials NV | | |
| | |
| | |
| | |
| | |
BE Semiconductor Industries NV | | |
| | |
| | |
| | |
| | |
Eurocommercial Properties NV | | |
| | |
| | |
| | |
| | |
| | |
Just Eat Takeaway.com NV * | | |
| | |
| | |
| | |
MFE-MediaForEurope NV, Class A | | |
MFE-MediaForEurope NV, Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
72
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
|
|
| | |
| | |
Auckland International Airport Ltd. | | |
| | |
| | |
| | |
Fisher & Paykel Healthcare Corp. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
SKYCITY Entertainment Group Ltd. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Gjensidige Forsikring ASA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nordic Semiconductor ASA * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Wilh Wilhelmsen Holding ASA, Class A | | |
Wilh Wilhelmsen Holding ASA, Class B | | |
| | |
|
| | |
|
| | |
| | |
Bank Handlowy w Warszawie SA | | |
Bank Polska Kasa Opieki SA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Jastrzebska Spolka Weglowa SA * | | |
| | |
| | |
| | |
| | |
| | |
Tauron Polska Energia SA * | | |
| | |
|
|
Banco Comercial Portugues SA, Class R | | |
| | |
| | |
REN - Redes Energeticas Nacionais SGPS SA | | |
| | |
| | |
|
|
| | |
| | |
Asia Paper Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Chong Kun Dang Pharmaceutical Corp. | | |
| | |
| | |
| | |
| | |
| | |
Daeduck Electronics Co. Ltd. | | |
| | |
Daesang Holdings Co. Ltd. | | |
Daewoo Engineering & Construction Co. Ltd. * | | |
Daishin Securities Co. Ltd. | | |
| | |
| | |
| | |
DGB Financial Group, Inc. | | |
| | |
Dongjin Semichem Co. Ltd. | | |
| | |
| | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
73
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Green Cross Holdings Corp. | | |
| | |
| | |
| | |
Hanjin Transportation Co. Ltd. | | |
| | |
| | |
| | |
Hanwha Aerospace Co. Ltd. (b) | | |
Hanwha General Insurance Co. Ltd. | | |
Hanwha Life Insurance Co. Ltd. | | |
| | |
| | |
HD Hyundai Construction Equipment Co. Ltd. | | |
HD Hyundai Heavy Industries Co. Ltd. * | | |
HD Hyundai Infracore Co. Ltd. * | | |
| | |
HD Korea Shipbuilding & Offshore Engineering Co. Ltd. | | |
| | |
HDC Hyundai Development Co-Engineering & Construction, Class E | | |
| | |
| | |
| | |
| | |
| | |
Hyosung Advanced Materials Corp. | | |
| | |
Hyosung Heavy Industries Corp. | | |
| | |
| | |
Hyundai Department Store Co. Ltd. | | |
Hyundai Elevator Co. Ltd. | | |
| | |
Hyundai Home Shopping Network Corp. | | |
Hyundai Marine & Fire Insurance Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
JB Financial Group Co. Ltd. | | |
| | |
| | |
| | |
| | |
KEPCO Plant Service & Engineering Co. Ltd. | | |
| | |
| | |
| | |
KIWOOM Securities Co. Ltd. | | |
| | |
| | |
Korea Aerospace Industries Ltd. | | |
| | |
Korea Electric Terminal Co. Ltd. | | |
Korea Investment Holdings Co. Ltd. | | |
| | |
Korea Petrochemical Ind Co. Ltd. | | |
| | |
| | |
| | |
| | |
Kwang Dong Pharmaceutical Co. Ltd. | | |
| | |
| | |
LG Energy Solution Ltd. * | | |
| | |
Lotte Chilsung Beverage Co. Ltd. | | |
| | |
LOTTE Fine Chemical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Macquarie Korea Infrastructure Fund | | |
| | |
Meritz Financial Group, Inc. | | |
Mirae Asset Securities Co. Ltd. | | |
Namyang Dairy Products Co. Ltd. | | |
| | |
| | |
| | |
NH Investment & Securities Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Posco International Corp. | | |
| | |
| | |
Samsung Biologics Co. Ltd. * | | |
| | |
| | |
Samsung Heavy Industries Co. Ltd. * | | |
Samsung Securities Co. Ltd. | | |
| | |
| | |
| | |
SeAH Besteel Holdings Corp. | | |
| | |
SeAH Steel Holdings Corp. | | |
Sebang Global Battery Co. Ltd. | | |
| | |
Seohee Construction Co. Ltd. | | |
Seoul Semiconductor Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
74
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Songwon Industrial Co. Ltd. | | |
| | |
| | |
Taekwang Industrial Co. Ltd. | | |
Taihan Electric Wire Co. Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
Youngone Holdings Co. Ltd. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
CapitaLand Integrated Commercial Trust | | |
CapitaLand Investment Ltd. | | |
| | |
| | |
| | |
Frasers Logistics & Commercial Trust | | |
| | |
Geo Energy Resources Ltd. | | |
| | |
Hutchison Port Holdings Trust, Class U | | |
| | |
Jardine Cycle & Carriage Ltd. | | |
| | |
Keppel Infrastructure Trust | | |
| | |
Manulife U.S. Real Estate Investment Trust * | | |
Mapletree Industrial Trust | | |
Mapletree Logistics Trust | | |
Mapletree Pan Asia Commercial Trust | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Singapore Technologies Engineering Ltd. | | |
| | |
Suntec Real Estate Investment Trust | | |
| | |
| | |
|
|
Abengoa SA, B Shares *(b) | | |
| | |
| | |
| | |
Atresmedia Corp. de Medios de Comunicacion SA | | |
| | |
| | |
Cia de Distribucion Integral Logista Holdings SA | | |
| | |
Construcciones y Auxiliar de Ferrocarriles SA | | |
Corp. ACCIONA Energias Renovables SA | | |
| | |
| | |
| | |
Ence Energia y Celulosa SA | | |
| | |
| | |
| | |
Grupo Catalana Occidente SA | | |
| | |
Inmobiliaria Colonial Socimi SA | | |
International Consolidated Airlines Group SA * | | |
Linea Directa Aseguradora SA Cia de Seguros y Reaseguros | | |
| | |
Melia Hotels International SA | | |
Merlin Properties Socimi SA | | |
| | |
Obrascon Huarte Lain SA *(a) | | |
Prosegur Cia de Seguridad SA | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Coor Service Management Holding AB | | |
Corem Property Group AB, B Shares | | |
| | |
| | |
Electrolux Professional AB, B Shares | | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
75
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
Fastighets AB Balder, B Shares * | | |
| | |
| | |
| | |
| | |
| | |
Industrivarden AB, A Shares | | |
Industrivarden AB, C Shares | | |
| | |
| | |
| | |
Investment AB Latour, B Shares | | |
| | |
| | |
| | |
| | |
L E Lundbergforetagen AB, B Shares | | |
Lagercrantz Group AB, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
New Wave Group AB, B Shares | | |
Nibe Industrier AB, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Samhallsbyggnadsbolaget i Norden AB (a) | | |
Samhallsbyggnadsbolaget i Norden AB, D Shares (a) | | |
Scandic Hotels Group AB * | | |
| | |
| | |
Storskogen Group AB, B Shares | | |
| | |
Swedish Orphan Biovitrum AB * | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Banque Cantonale Vaudoise | | |
| | |
| | |
| | |
| | |
Bossard Holding AG, Class A | | |
| | |
Burckhardt Compression Holding AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schweiter Technologies AG | | |
| | |
| | |
| | |
| | |
St. Galler Kantonalbank AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Babcock International Group PLC | | |
Bank of Georgia Group PLC | | |
| | |
| | |
| | |
76
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Crest Nicholson Holdings PLC | | |
| | |
| | |
| | |
| | |
| | |
Diversified Energy Co. PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hikma Pharmaceuticals PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
InterContinental Hotels Group PLC | | |
Intermediate Capital Group PLC | | |
| | |
| | |
| | |
| | |
| | |
Johnson Service Group PLC | | |
Jupiter Fund Management PLC | | |
| | |
| | |
| | |
| | |
| | |
Land Securities Group PLC | | |
Liontrust Asset Management PLC | | |
LondonMetric Property PLC | | |
| | |
| | |
Mitchells & Butlers PLC * | | |
| | |
| | |
| | |
Morgan Advanced Materials PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
Paragon Banking Group PLC | | |
| | |
| | |
| | |
Pinewood Technologies Group PLC | | |
Polar Capital Holdings PLC | | |
| | |
Primary Health Properties PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rolls-Royce Holdings PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Spire Healthcare Group PLC | | |
Spirent Communications PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
77
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
Vanquis Banking Group PLC | | |
| | |
| | |
| | |
| | |
Watches of Switzerland Group PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Coronado Global Resources, Inc. | | |
| | |
Kulicke & Soffa Industries, Inc. | | |
Magnachip Semiconductor Corp. * | | |
Mercer International, Inc. | | |
SolarEdge Technologies, Inc. * | | |
| | |
Total Common Stocks
(Cost $2,879,727,613) | |
|
PREFERRED STOCKS 0.2% OF NET ASSETS |
|
|
Draegerwerk AG & Co. KGaA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Danieli & C Officine Meccaniche SpA - RSP | | |
|
|
Daishin Securities Co. Ltd. | | |
Total Preferred Stocks
(Cost $4,766,154) | |
|
RIGHTS 0.0% OF NET ASSETS |
|
|
Macquarie Korea Infrastructure Fund |
expires 10/07/24, strike KRW 11,570.00 *(b) | | |
| |
|
| | |
WARRANTS 0.0% OF NET ASSETS |
|
|
|
| | |
| |
| | |
SHORT-TERM INVESTMENTS 1.7% 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 $55,395,745) | |
Total Investments in Securities
(Cost $2,939,889,512) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
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 $52,021,579. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| Security is traded on separate exchanges for the same issuer. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| American Depositary Receipt |
| |
| Real Estate Investment Trust |
| Risparmio (Savings Shares) |
| |
78
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Small Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (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 Fundamental Index ETFs | Semiannual Holdings and Financial Statements
79
Schwab Fundamental International Small Equity ETF
Statement of Assets and Liabilities
As of August 31, 2024; unaudited
|
Investments in securities, at value - unaffiliated issuers (cost $2,939,889,512) including securities on loan of $52,021,579 | | |
Foreign currency, at value (cost $1,648,293) | | |
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 | | |
| | |
80
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental International Small Equity ETF
Statement of Operations
For the period March 1, 2024 through August 31, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $7,245,524) | | |
| | |
Interest 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 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 Fundamental Index ETFs | Semiannual Holdings and Financial Statements
81
Schwab Fundamental International Small Equity ETF
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
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) | | | | | |
| | | | | |
82
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental 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. |
| Includes additional variable charges paid by the cash purchasers and redeemers of creation units to the fund to offset the transaction costs of the fund of buying or selling portfolio securities (see financial note 9 for additional information). |
| |
| |
| 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 Fundamental Index ETFs | Semiannual Holdings and Financial Statements
83
Schwab Fundamental Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited)
| | |
COMMON STOCKS 95.3% OF NET ASSETS |
|
|
| | |
B3 SA - Brasil Bolsa Balcao | | |
| | |
| | |
Banco Santander Brasil 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 | | |
| | |
| | |
| | |
| | |
Marfrig Global Foods SA * | | |
| | |
| | |
| | |
| | |
Ultrapar Participacoes SA | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
|
|
Agile Group Holdings Ltd. *(a) | | |
Agricultural Bank of China Ltd., A Shares | | |
Agricultural Bank of China Ltd., H Shares | | |
Alibaba Group Holding Ltd. | | |
Aluminum Corp. of China Ltd., A Shares | | |
Aluminum Corp. of China Ltd., H Shares | | |
Anhui Conch Cement Co. Ltd., A Shares | | |
Anhui Conch Cement Co. Ltd., H Shares | | |
ANTA Sports Products Ltd. | | |
BAIC Motor Corp. Ltd., H Shares | | |
| | |
Bank of Beijing 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 | | |
BOE Technology Group Co. Ltd., A Shares | | |
| | |
| | |
| | |
China CITIC Bank Corp. Ltd., A Shares | | |
China CITIC Bank Corp. 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 Construction Bank Corp., A Shares | | |
China Construction Bank Corp., H Shares | | |
China Everbright Bank Co. Ltd., A Shares | | |
China Everbright Bank Co. Ltd., H Shares (a) | | |
| | |
China Hongqiao Group Ltd. | | |
China Life Insurance Co. Ltd., H Shares | | |
China Mengniu Dairy Co. Ltd. | | |
China Merchants Bank Co. Ltd., A Shares | | |
China Merchants Bank Co. Ltd., H Shares | | |
China Minsheng Banking Corp. Ltd., A Shares | | |
China Minsheng Banking Corp. Ltd., H Shares | | |
China National Building Material Co. Ltd., H Shares | | |
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 Railway Group Ltd., A Shares | | |
China Railway Group Ltd., H Shares | | |
China Resources Building Materials Technology Holdings Ltd. | | |
China Resources Gas Group Ltd. | | |
China Resources Land Ltd. | | |
China Shenhua Energy Co. Ltd., A Shares | | |
China Shenhua Energy Co. Ltd., H Shares | | |
China State Construction Engineering Corp. Ltd., A Shares | | |
China Tower Corp. Ltd., H Shares | | |
China United Network Communications Ltd., A Shares | | |
China Vanke Co. Ltd., A Shares * | | |
China Vanke Co. Ltd., H Shares *(a) | | |
China Yongda Automobiles Services Holdings Ltd. | | |
CITIC Securities Co. Ltd., A Shares | | |
CITIC Securities Co. Ltd., H Shares | | |
COSCO SHIPPING Holdings Co. Ltd., A Shares | | |
COSCO SHIPPING Holdings Co. Ltd., H Shares | | |
Country Garden Holdings Co. Ltd. *(a)(b) | | |
CRRC Corp. Ltd., A Shares | | |
84
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
CRRC Corp. Ltd., H Shares | | |
Dongfeng Motor Group Co. Ltd., H Shares * | | |
| | |
GCL Technology Holdings Ltd. * | | |
Geely Automobile Holdings Ltd. | | |
Guangzhou R&F Properties Co. Ltd., H Shares *(a) | | |
Haier Smart Home Co. Ltd., A Shares | | |
Haier Smart Home Co. Ltd., H Shares | | |
Hengan International Group Co. Ltd. | | |
Huaneng Power International, Inc., A Shares | | |
Huaneng Power International, Inc., H Shares | | |
Industrial & Commercial Bank of China Ltd., A Shares | | |
Industrial & Commercial Bank of China Ltd., H Shares | | |
Industrial Bank Co. Ltd., A Shares | | |
| | |
| | |
Jiangxi Copper Co. Ltd., A Shares | | |
Jiangxi Copper Co. Ltd., H Shares | | |
| | |
| | |
| | |
Kweichow Moutai Co. Ltd., A Shares | | |
| | |
Longfor Group Holdings Ltd. | | |
| | |
| | |
Midea Group Co. Ltd., A Shares | | |
| | |
PDD Holdings, Inc., ADR * | | |
People's Insurance Co. Group of China Ltd., A Shares | | |
People's Insurance Co. Group of China Ltd., H Shares | | |
PetroChina Co. Ltd., A Shares | | |
PetroChina Co. Ltd., H Shares | | |
PICC Property & Casualty Co. Ltd., H Shares | | |
Ping An Bank Co. Ltd., A Shares | | |
Ping An Insurance Group Co. of China Ltd., A Shares | | |
Ping An Insurance Group Co. of China Ltd., H Shares | | |
Postal Savings Bank of China Co. Ltd., A Shares | | |
Postal Savings Bank of China Co. Ltd., H Shares | | |
| | |
Shanghai Pharmaceuticals Holding Co. Ltd., A Shares | | |
Shanghai Pudong Development Bank Co. Ltd., A Shares | | |
Shenzhou International Group Holdings Ltd. | | |
Sinopharm Group Co. Ltd., H Shares | | |
Sunac China Holdings Ltd. *(a) | | |
Sunny Optical Technology Group Co. Ltd. | | |
| | |
Tingyi Cayman Islands Holding Corp. | | |
Vipshop Holdings Ltd., ADR | | |
Weichai Power Co. Ltd., A Shares | | |
| | |
Weichai Power Co. Ltd., H Shares | | |
| | |
Yankuang Energy Group Co. Ltd., A Shares | | |
Yankuang Energy Group Co. Ltd., H Shares | | |
Zhongsheng Group Holdings Ltd. | | |
Zijin Mining Group Co. Ltd., A Shares | | |
Zijin Mining Group Co. Ltd., H Shares | | |
ZTO Express Cayman, Inc., ADR | | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
|
|
Alpha Services & Holdings SA | | |
Eurobank Ergasias Services & Holdings SA, A Shares | | |
National Bank of Greece SA | | |
| | |
|
|
Beijing Enterprises Holdings Ltd. | | |
BOC Hong Kong Holdings Ltd. | | |
China Everbright Environment Group Ltd. (a) | | |
China Jinmao Holdings Group Ltd. | | |
China Overseas Land & Investment Ltd. | | |
China Resources Power Holdings Co. Ltd. | | |
China Taiping Insurance Holdings Co. Ltd. | | |
| | |
CSPC Pharmaceutical Group Ltd. | | |
| | |
| | |
Nine Dragons Paper Holdings Ltd. * | | |
Orient Overseas International Ltd. | | |
Sino Biopharmaceutical Ltd. | | |
| | |
|
|
MOL Hungarian Oil & Gas PLC | | |
| | |
| | |
|
|
| | |
Bharat Petroleum Corp. Ltd. | | |
| | |
Bharti Airtel Ltd. - Partly Paid Shares | | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
85
Schwab Fundamental Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
Hindustan Petroleum Corp. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Oil & Natural Gas Corp. Ltd. | | |
| | |
| | |
Power Grid Corp. of India Ltd. | | |
| | |
| | |
| | |
| | |
Steel Authority of India Ltd. | | |
Sun Pharmaceutical Industries Ltd. | | |
Tata Consultancy Services Ltd. | | |
| | |
Tata Motors Ltd. - Unlisted Line *(b) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Adaro Energy Indonesia Tbk. PT | | |
Astra International Tbk. PT | | |
Bank Central Asia Tbk. PT | | |
Bank Mandiri Persero Tbk. PT | | |
Bank Rakyat Indonesia Persero Tbk. PT | | |
Telkom Indonesia Persero Tbk. PT, Class B | | |
| | |
| | |
|
|
Kuwait Finance House KSCP | | |
Mobile Telecommunications Co. KSCP | | |
National Bank of Kuwait SAKP | | |
| | |
|
|
| | |
| | |
| | |
| | |
Petronas Chemicals Group Bhd. | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
America Movil SAB de CV, Series B | | |
Cemex SAB de CV, Series CPO | | |
Fibra Uno Administracion SA de CV | | |
Fomento Economico Mexicano SAB de CV | | |
Grupo Bimbo SAB de CV, Series A | | |
Grupo Financiero Banorte SAB de CV, O Shares | | |
Grupo Mexico SAB de CV, Series B | | |
Grupo Televisa SAB, Series CPO | | |
| | |
| | |
Orbia Advance Corp. SAB de CV | | |
Wal-Mart de Mexico SAB de CV | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Federal Grid Co-Rosseti PJSC *(b)(c) | | |
| | |
GMK Norilskiy Nickel PAO *(b)(c) | | |
Inter RAO UES PJSC *(b)(c) | | |
| | |
| | |
Mobile TeleSystems PJSC *(b)(c) | | |
| | |
Novolipetsk Steel PJSC *(b)(c) | | |
Rosneft Oil Co. PJSC *(b)(c) | | |
Sberbank of Russia PJSC *(b)(c) | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Saudi Arabian Mining Co. * | | |
| | |
| | |
Saudi Basic Industries Corp. | | |
| | |
| | |
| | |
| | |
|
|
| | |
Anglo American Platinum Ltd. | | |
86
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
Impala Platinum Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
ASE Technology Holding Co. Ltd. | | |
| | |
| | |
| | |
Catcher Technology Co. Ltd. | | |
Cathay Financial Holding Co. Ltd. | | |
Chailease Holding Co. Ltd. | | |
| | |
Chunghwa Telecom Co. Ltd. | | |
| | |
CTBC Financial Holding Co. Ltd. | | |
| | |
E.Sun Financial Holding Co. Ltd. | | |
Evergreen Marine Corp. Taiwan Ltd. | | |
Far Eastern New Century Corp. | | |
Far EasTone Telecommunications Co. Ltd. | | |
First Financial Holding Co. Ltd. | | |
Formosa Chemicals & Fibre Corp. | | |
Formosa Petrochemical Corp. | | |
| | |
Fubon Financial Holding Co. Ltd. | | |
Hon Hai Precision Industry Co. Ltd. | | |
| | |
| | |
KGI Financial Holding Co. Ltd. | | |
Largan Precision Co. Ltd. | | |
Lite-On Technology Corp., ADR | | |
| | |
Mega Financial Holding Co. Ltd. | | |
Micro-Star International Co. Ltd. | | |
| | |
Novatek Microelectronics Corp. | | |
| | |
| | |
Powertech Technology, Inc. | | |
President Chain Store Corp. | | |
| | |
Realtek Semiconductor Corp. | | |
Shin Kong Financial Holding Co. Ltd. * | | |
Synnex Technology International Corp. | | |
Taiwan Cooperative Financial Holding Co. Ltd. | | |
| | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | |
| | |
TCC Group Holdings Co. Ltd. | | |
Unimicron Technology Corp. | | |
Uni-President Enterprises Corp. | | |
United Microelectronics Corp. | | |
| | |
| | |
| | |
| | |
| | |
Yang Ming Marine Transport Corp. | | |
Yuanta Financial Holding Co. Ltd. | | |
Zhen Ding Technology Holding Ltd. | | |
| | |
|
|
Advanced Info Service PCL NVDR | | |
| | |
Bangkok Dusit Medical Services PCL NVDR | | |
| | |
Charoen Pokphand Foods PCL NVDR | | |
| | |
| | |
| | |
PTT Exploration & Production PCL NVDR | | |
PTT Global Chemical PCL NVDR | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
BIM Birlesik Magazalar AS | | |
Eregli Demir ve Celik Fabrikalari TAS | | |
Haci Omer Sabanci Holding AS | | |
| | |
| | |
Turkcell Iletisim Hizmetleri AS | | |
Turkiye Is Bankasi AS, Class C | | |
Turkiye Petrol Rafinerileri AS | | |
| | |
| | |
|
United Arab Emirates 1.0% |
Abu Dhabi Commercial Bank PJSC | | |
| | |
| | |
| | |
Emirates Telecommunications Group Co. PJSC | | |
First Abu Dhabi Bank PJSC | | |
| | |
|
|
| | |
|
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
87
Schwab Fundamental Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (continued)
| | |
|
Yum China Holdings, Inc. (d) | | |
Yum China Holdings, Inc. (d) | | |
| | |
Total Common Stocks
(Cost $4,847,499,989) | |
|
PREFERRED STOCKS 4.1% OF NET ASSETS |
|
|
| | |
Centrais Eletricas Brasileiras SA, B Shares | | |
Cia Energetica de Minas Gerais | | |
Cia Paranaense de Energia - Copel, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Sociedad Quimica y Minera de Chile SA, B Shares | | |
|
|
| | |
|
|
Surgutneftegas PJSC *(b)(c) | | |
| | |
| | |
| | |
Total Preferred Stocks
(Cost $195,872,229) | |
| | |
SHORT-TERM INVESTMENTS 1.4% 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 $89,327,093) | |
Total Investments in Securities
(Cost $5,132,699,311) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
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 $28,550,468. |
| 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. |
| Security is traded on separate exchanges for the same issuer. |
| 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 |
| |
| Includes holdings within sectors that are less than 1.0% of net assets. |
88
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental Emerging Markets Equity ETF
Portfolio Holdings as of August 31, 2024 (Unaudited) (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 Fundamental Index ETFs | Semiannual Holdings and Financial Statements
89
Schwab Fundamental Emerging Markets Equity ETF
Statement of Assets and Liabilities
As of August 31, 2024; unaudited
|
Investments in securities, at value - unaffiliated issuers (cost $5,132,699,311) including securities on loan of $28,550,468 | | |
Foreign currency, at value (cost $13,857,081) | | |
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 | | |
| | |
90
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental Emerging Markets Equity ETF
Statement of Operations
For the period March 1, 2024 through August 31, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $21,370,554) | | |
Interest received from securities - unaffiliated issuers | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - unaffiliated issuers (net of foreign capital gains tax paid of $7,716,495) | | |
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 ($19,573,037)) | | |
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 Fundamental Index ETFs | Semiannual Holdings and Financial Statements
91
Schwab Fundamental Emerging Markets Equity ETF
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
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 |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
92
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental Index ETFs
Financial Notes, unaudited
1. Business Structure of the Funds:
Each of the funds in this report is a series of Schwab Strategic Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the operational funds in the trust as of the end of the period, including the funds discussed in this report, which are highlighted:
|
Schwab Fundamental U.S. Broad Market ETF | |
Schwab Fundamental U.S. Large Company ETF | Schwab International Dividend Equity ETF |
Schwab Fundamental U.S. Small Company ETF | Schwab International Equity ETF |
Schwab Fundamental International Equity ETF | Schwab International Small-Cap Equity ETF |
Schwab Fundamental International Small Equity ETF | Schwab Emerging Markets Equity ETF |
Schwab Fundamental Emerging Markets Equity 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 U.S. Dividend Equity ETF | Schwab Crypto Thematic ETF |
Schwab Municipal Bond ETF | Schwab High Yield Bond ETF |
Schwab Ultra-Short Income ETF | |
Effective June 21, 2024, the following name changes occurred: Schwab Fundamental U.S. Broad Market Index ETF changed to Schwab Fundamental U.S. Broad Market ETF, Schwab Fundamental U.S. Large Company Index ETF changed to Schwab Fundamental U.S. Large Company ETF, Schwab Fundamental U.S. Small Company Index ETF changed to Schwab Fundamental U.S. Small Company ETF, Schwab Fundamental International Large Company Index ETF changed to Schwab Fundamental International Equity ETF, Schwab Fundamental International Small Company Index ETF changed to Schwab Fundamental International Small Equity ETF and Schwab Fundamental Emerging Markets Large Company Index ETF changed to Schwab Fundamental Emerging Markets Equity 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 Fundamental U.S. Broad Market 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. based companies based on their fundamental size and weight.
The Schwab Fundamental U.S. Large Company 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 large U.S. companies based on their fundamental size and weight.
The Schwab Fundamental U.S. Small Company 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 small U.S. companies based on their fundamental size and weight.
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
93
Schwab Fundamental Index ETFs
Financial Notes, unaudited (continued)
1. Business Structure of the Funds (continued):
The Schwab Fundamental International Equity 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 large non-U.S. developed market companies based on their fundamental size and weight.
The Schwab Fundamental International Small Equity 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 small non-U.S. developed market companies based on their fundamental size and weight.
The Schwab Fundamental Emerging Markets Equity 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 large sized companies, based on their fundamental size and weight, in emerging market countries.
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. 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
94
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental Index ETFs
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
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.
● 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
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
95
Schwab Fundamental Index ETFs
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
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 agents 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 Fundamental U.S. Broad Market ETF, Schwab Fundamental U.S. Large Company ETF, Schwab Fundamental U.S. Small Company ETF, Schwab Fundamental International Equity ETF, Schwab Fundamental International Small Equity ETF and Schwab Fundamental 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 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 Schwab Fundamental International Equity ETF, Schwab Fundamental International Small Equity ETF and Schwab Fundamental Emerging Markets Equity ETF 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.
96
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental Index ETFs
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(d) Investment Income:
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 Fundamental International Equity ETF, Schwab Fundamental International Small Equity ETF and Schwab Fundamental 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 expenses 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 Fundamental International Equity ETF, Schwab Fundamental International Small Equity ETF and Schwab Fundamental Emerging Markets Equity ETF will evaluate the requirements for entering into a 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 Fundamental International Equity ETF, Schwab Fundamental International Small Equity ETF and Schwab Fundamental 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 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:
Schwab Fundamental U.S. Broad Market ETF, Schwab Fundamental U.S. Large Company ETF and Schwab Fundamental U.S. Small Company ETF make distributions from net investment income, if any, quarterly. Schwab Fundamental International Equity ETF, Schwab Fundamental International Small Equity ETF and Schwab Fundamental Emerging Markets Equity ETF make distributions from net investment income, if any, semiannually. All funds make distributions 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.
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
97
Schwab Fundamental Index ETFs
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(h) Federal Income Taxes:
The funds intend to meet federal income and excise tax requirements for regulated investment companies 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. 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.
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 their respective securities included in the index during upturns as well as downturns. Because of their indexing strategies, the funds do not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of the funds’ expenses, the funds’ performance may be below that of their respective index. Errors relating to an 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 an index’s rebalancing schedule. Such errors and/or market disruptions may result in losses for a fund.
New Index Risk. Each fund’s comparative index was recently constituted and has not previously been utilized for a registered fund, which may create additional risks for investing in 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.
98
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental Index ETFs
Financial Notes, unaudited (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.
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 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. Certain funds invest in emerging markets. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, 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.
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 use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures and swaps. An option is the right, but not the obligation, to buy or sell an instrument at a specific price on or before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. A swap is an agreement whereby two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities and a predetermined amount. A fund’s use of derivatives that are 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.
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 liquidity risk, leverage risk and market 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 derivatives 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 the fund to realize higher amounts of short-term capital gains. A fund’s use of derivatives could reduce the fund’s performance, increase the fund’s volatility, and could cause the fund to lose more than the initial amount invested. A fund’s use of derivatives also could create a risk of counterparty
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
99
Schwab Fundamental Index ETFs
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
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.
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.
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 FUNDAMENTAL U.S. BROAD MARKET ETF | SCHWAB FUNDAMENTAL U.S. LARGE COMPANY ETF | SCHWAB FUNDAMENTAL U.S. SMALL COMPANY ETF | SCHWAB FUNDAMENTAL INTERNATIONAL EQUITY ETF | SCHWAB FUNDAMENTAL INTERNATIONAL SMALL EQUITY ETF | SCHWAB FUNDAMENTAL EMERGING MARKETS EQUITY ETF |
| | | | | |
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.
For the period ended August 31, 2024, the professional fees incurred by the Schwab Fundamental International Equity ETF and Schwab Fundamental International Small Equity ETF and paid by the investment adviser were $30,857 and $1,111, respectively, as shown as Professional fees in each fund’s Statement of Operations.
100
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental Index ETFs
Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
During the period ended August 31, 2024, Schwab Fundamental International Equity ETF, Schwab Fundamental International Small Equity ETF and Schwab Fundamental Emerging Markets 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 Fundamental International Equity ETF and Schwab Fundamental International Small Equity ETF to the investment adviser were $88,615 and $22,615, respectively. Schwab Fundamental Emerging Markets Equity ETF had no balance of professional fees related to foreign withholding tax subject to future reimbursement by the fund 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 Fundamental U.S. Broad Market ETF | | | |
Schwab Fundamental U.S. Large Company ETF | | | |
Schwab Fundamental U.S. Small Company ETF | | | |
Schwab Fundamental International Equity ETF | | | |
Schwab Fundamental International Small Equity ETF | | | |
Schwab Fundamental 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.
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), 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, 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.
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
101
Schwab Fundamental Index ETFs
Financial Notes, unaudited (continued)
6. Borrowing from Banks (continued):
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, if any. 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 Fundamental U.S. Broad Market ETF | | |
| | |
Schwab Fundamental U.S. Large Company ETF | | |
| | |
Schwab Fundamental U.S. Small Company ETF | | |
| | |
Schwab Fundamental International Equity ETF | | |
| | |
Schwab Fundamental International Small Equity ETF | | |
| | |
Schwab Fundamental 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. |
The effects of the derivative contracts in the Statement of Operations for the period ended August 31, 2024, were:
| | |
Net Realized Gains (Losses) | | |
Schwab Fundamental U.S. Broad Market ETF | | |
| | |
Schwab Fundamental U.S. Large Company ETF | | |
| | |
Schwab Fundamental U.S. Small Company ETF | | |
| | |
Schwab Fundamental International Equity ETF | | |
| | |
Schwab Fundamental International Small Equity ETF | | |
| | |
Schwab Fundamental Emerging Markets Equity ETF | | |
| | |
| |
| Statement of Operations location: Net realized gains (losses) on futures contracts. |
102
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental Index ETFs
Financial Notes, unaudited (continued)
7. Derivatives (continued):
Net Change in Unrealized Appreciation (Depreciation) | | |
Schwab Fundamental U.S. Broad Market ETF | | |
| | |
Schwab Fundamental U.S. Large Company ETF | | |
| | |
Schwab Fundamental U.S. Small Company ETF | | |
| | |
Schwab Fundamental International Equity ETF | | |
| | |
Schwab Fundamental International Small Equity ETF | | |
| | |
Schwab Fundamental 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 Fundamental U.S. Broad Market ETF | | |
Schwab Fundamental U.S. Large Company ETF | | |
Schwab Fundamental U.S. Small Company ETF | | |
Schwab Fundamental International Equity ETF | | |
Schwab Fundamental International Small Equity ETF | | |
Schwab Fundamental 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 Fundamental U.S. Broad Market ETF | | |
Schwab Fundamental U.S. Large Company ETF | | |
Schwab Fundamental U.S. Small Company ETF | | |
Schwab Fundamental International Equity ETF | | |
Schwab Fundamental International Small Equity ETF | | |
Schwab Fundamental Emerging Markets Equity ETF | | |
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 funds, generally have no effect on net asset value per share. When variable charges for the Schwab
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
103
Schwab Fundamental Index ETFs
Financial Notes, unaudited (continued)
9. In-Kind Transactions (continued):
Fundamental Emerging Markets Equity ETF in prior periods were larger than other funds they were disclosed in Other Capital in the Financial Highlights. 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 Fundamental U.S. Broad Market ETF | | |
Schwab Fundamental U.S. Large Company ETF | | |
Schwab Fundamental U.S. Small Company ETF | | |
Schwab Fundamental International Equity ETF | | |
Schwab Fundamental International Small Equity ETF | | |
Schwab Fundamental 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 Fundamental U.S. Broad Market ETF | | | | |
Schwab Fundamental U.S. Large Company ETF | | | | |
Schwab Fundamental U.S. Small Company ETF | | | | |
Schwab Fundamental International Equity ETF | | | | |
Schwab Fundamental International Small Equity ETF | | | | |
Schwab Fundamental 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 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.
Capital loss carryforwards have no expiration and may be used to offset future realized capital gains for federal income tax purposes. As of February 29, 2024, the funds had capital loss carryforwards available as follows:
| |
Schwab Fundamental U.S. Broad Market ETF | |
Schwab Fundamental U.S. Large Company ETF | |
Schwab Fundamental U.S. Small Company ETF | |
Schwab Fundamental International Equity ETF | |
Schwab Fundamental International Small Equity ETF | |
Schwab Fundamental Emerging Markets Equity ETF | |
104
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental Index ETFs
Financial Notes, unaudited (continued)
10. Federal Income Taxes (continued):
The tax basis components of distributions and components of distributable earnings on a tax basis are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of August 31, 2024. The tax basis components of distributions paid during the fiscal year ended February 29, 2024, were as follows:
| PRIOR FISCAL YEAR END DISTRIBUTIONS |
| |
Schwab Fundamental U.S. Broad Market ETF | |
Schwab Fundamental U.S. Large Company ETF | |
Schwab Fundamental U.S. Small Company ETF | |
Schwab Fundamental International Equity ETF | |
Schwab Fundamental International Small Equity ETF | |
Schwab Fundamental 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.
As of February 29, 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 February 29, 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 Fundamental U.S. Broad Market ETF | |
Schwab Fundamental U.S. Large Company ETF | |
Schwab Fundamental U.S. Small Company 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.
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
105
Schwab Fundamental Index 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 Fundamental U.S. Broad Market Index ETF, Schwab Fundamental U.S. Large Company Index ETF, Schwab Fundamental U.S. Small Company Index ETF, Schwab Fundamental International Large Company Index ETF, Schwab Fundamental International Small Company Index ETF, and Schwab Fundamental Emerging Markets Large Company Index ETF (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
106
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
Schwab Fundamental Index ETFs
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 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 noted that, at a meeting held on February 27, 2024, the Trustees had approved each Fund’s transition to a new benchmark index which will be relevant in measuring Fund performance going forward. 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 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
Schwab Fundamental Index ETFs | Semiannual Holdings and Financial Statements
107
Schwab Fundamental Index ETFs
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.
108
Schwab Fundamental Index ETFs | Semiannual 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 Principal Executive Officer, Omar Aguilar and Registrant’s Principal 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 13: Exhibits.
(a) (1) Code of ethics – not applicable to this semi-annual report.
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 Fundamental Index ETFs and Schwab U.S. REIT 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 |
