Schwab Strategic TrustSchwab Ariel ESG ETF
Portfolio Holdings as of December 31, 2023 (Unaudited)
The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports. You can also obtain this information at no cost by calling 1-866-414-6349 or by sending an email request to orders@mysummaryprospectus.com.
SECURITY | NUMBER OF SHARES | VALUE ($) |
COMMON STOCKS 98.9% OF NET ASSETS | ||
Automobiles & Components 3.4% | ||
BorgWarner, Inc. | 6,857 | 245,823 |
Gentex Corp. | 11,950 | 390,287 |
Phinia, Inc. | 1,372 | 41,558 |
677,668 | ||
Banks 1.7% | ||
M&T Bank Corp. | 2,468 | 338,313 |
Capital Goods 15.3% | ||
Generac Holdings, Inc. * | 3,105 | 401,290 |
Kennametal, Inc. | 12,250 | 315,927 |
Masco Corp. | 3,517 | 235,569 |
Middleby Corp. * | 1,767 | 260,049 |
nVent Electric PLC | 8,098 | 478,511 |
Resideo Technologies, Inc. * | 24,296 | 457,251 |
Sensata Technologies Holding PLC | 7,729 | 290,379 |
Simpson Manufacturing Co., Inc. | 1,639 | 324,489 |
Snap-on, Inc. | 1,073 | 309,925 |
3,073,390 | ||
Commercial & Professional Services 7.7% | ||
Brady Corp., Class A | 3,440 | 201,894 |
Brink's Co. | 7,201 | 633,328 |
Dun & Bradstreet Holdings, Inc. | 26,382 | 308,669 |
Korn Ferry | 2,929 | 173,836 |
Stericycle, Inc. * | 4,472 | 221,632 |
1,539,359 | ||
Consumer Discretionary Distribution & Retail 2.7% | ||
CarMax, Inc. * | 2,900 | 222,546 |
Leslie's, Inc. * | 45,977 | 317,701 |
540,247 | ||
Consumer Durables & Apparel 2.2% | ||
Mattel, Inc. * | 17,675 | 333,704 |
Mohawk Industries, Inc. * | 1,146 | 118,611 |
452,315 | ||
Consumer Services 14.2% | ||
ADT, Inc. | 39,120 | 266,799 |
Adtalem Global Education, Inc. * | 4,681 | 275,945 |
Lindblad Expeditions Holdings, Inc. * | 68,345 | 770,248 |
Norwegian Cruise Line Holdings Ltd. * | 41,006 | 821,760 |
OneSpaWorld Holdings Ltd. * | 51,250 | 722,625 |
2,857,377 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Financial Services 11.3% | ||
Fiserv, Inc. * | 4,316 | 573,338 |
Goldman Sachs Group, Inc. | 1,127 | 434,763 |
KKR & Co., Inc. | 6,880 | 570,008 |
Lazard Ltd., Class A | 8,233 | 286,508 |
Northern Trust Corp. | 4,793 | 404,433 |
2,269,050 | ||
Food, Beverage & Tobacco 0.5% | ||
J M Smucker Co. | 819 | 103,505 |
Health Care Equipment & Services 5.0% | ||
Envista Holdings Corp. * | 6,515 | 156,751 |
Laboratory Corp. of America Holdings | 1,260 | 286,385 |
Patterson Cos., Inc. | 8,390 | 238,696 |
Zimmer Biomet Holdings, Inc. | 2,650 | 322,505 |
1,004,337 | ||
Household & Personal Products 0.9% | ||
Reynolds Consumer Products, Inc. | 6,670 | 179,023 |
Insurance 4.4% | ||
Aflac, Inc. | 3,363 | 277,448 |
First American Financial Corp. | 5,676 | 365,761 |
Progressive Corp. | 1,513 | 240,991 |
884,200 | ||
Materials 1.5% | ||
Axalta Coating Systems Ltd. * | 8,877 | 301,552 |
Media & Entertainment 7.3% | ||
Interpublic Group of Cos., Inc. | 8,810 | 287,559 |
Madison Square Garden Entertainment Corp. * | 7,442 | 236,581 |
Madison Square Garden Sports Corp. * | 1,376 | 250,198 |
Manchester United PLC, Class A * | 19,426 | 395,902 |
Paramount Global, Class B | 6,446 | 95,336 |
Sphere Entertainment Co. * | 5,674 | 192,689 |
1,458,265 | ||
Pharmaceuticals, Biotechnology & Life Sciences 5.2% | ||
Bio-Rad Laboratories, Inc., Class A * | 511 | 164,997 |
Charles River Laboratories International, Inc. * | 1,906 | 450,578 |
Fortrea Holdings, Inc. * | 1,252 | 43,695 |
Prestige Consumer Healthcare, Inc. * | 6,467 | 395,910 |
1,055,180 | ||
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Schwab Ariel ESG ETF
Portfolio Holdings (Unaudited) continued
SECURITY | NUMBER OF SHARES | VALUE ($) |
Real Estate Management & Development 3.5% | ||
CBRE Group, Inc., Class A * | 3,612 | 336,241 |
Jones Lang LaSalle, Inc. * | 1,926 | 363,764 |
700,005 | ||
Software & Services 3.2% | ||
Fair Isaac Corp. * | 352 | 409,732 |
Hackett Group, Inc. | 10,442 | 237,764 |
647,496 | ||
Technology Hardware & Equipment 8.9% | ||
Keysight Technologies, Inc. * | 2,059 | 327,566 |
Knowles Corp. * | 19,344 | 346,451 |
Littelfuse, Inc. | 1,352 | 361,741 |
Motorola Solutions, Inc. | 868 | 271,762 |
Zebra Technologies Corp., Class A * | 1,739 | 475,321 |
1,782,841 | ||
Total Common Stocks (Cost $18,997,143) | 19,864,123 | |
SECURITY | NUMBER OF SHARES | VALUE ($) |
SHORT-TERM INVESTMENTS 1.2% OF NET ASSETS | ||
Money Market Funds 1.2% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.32% (a) | 233,101 | 233,101 |
Total Short-Term Investments (Cost $233,101) | 233,101 | |
Total Investments in Securities (Cost $19,230,244) | 20,097,224 | |
* | Non-income producing security. |
(a) | The rate shown is the annualized 7-day yield. |
The following is a summary of the inputs used to value the fund’s investments as of December 31, 2023 (see notes to portfolio holdings for additional information):
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
Common Stocks1 | $19,864,123 | $— | $— | $19,864,123 |
Short-Term Investments1 | 233,101 | — | — | 233,101 |
Total | $20,097,224 | $— | $— | $20,097,224 |
1 | As categorized in the Portfolio Holdings. |
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Schwab Ariel ESG ETF
Notes to Portfolio Holdings (Unaudited)
Pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended (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.
• Mutual funds: Mutual funds are valued at their respective net asset values (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 generally accepted accounting principles in the United States of America (GAAP), the fund discloses the fair value of its investments in a hierarchy that prioritizes the significant inputs to valuation methods used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If it is determined that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and the Valuation Designee’s judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
• Level 1 — quoted prices in active markets for identical investments —Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, exchange-traded funds (ETFs) and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held which could be Level 1, Level 2 or Level 3 in the fair value heirarchy.
• Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations.
• 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 the fund’s results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the funds’ investments as of December 31, 2023, are disclosed in each fund’s Portfolio Holdings.
REG117329DEC23
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