UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-6200
Schwab Investments – Schwab Taxable Bond Funds, Schwab Tax-Free Bond Funds and Schwab High Yield Municipal Bond Fund (effective July 1, 2021, Schwab High Yield Municipal Bond Fund changed its name to Schwab Opportunistic Municipal Bond Fund)
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Jonathan de St. Paer
Schwab Investments – Schwab Taxable Bond Funds, Schwab Tax-Free Bond Funds and Schwab High Yield Municipal Bond Fund (effective July 1, 2021, Schwab High Yield Municipal Bond Fund changed its name to Schwab Opportunistic Municipal Bond Fund)
211 Main Street, San Francisco, California 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 627-7000
Date of fiscal year end: August 31
Date of reporting period: August 31, 2020
Explanatory Note: The Registrant is filing this amendment to its Form N-CSR for the period ended August 31, 2020, originally filed with the Securities and Exchange Commission on November 6, 2020 (Accession Number 0001193125-20-287811). This N-CSR amendment is being filed solely to file the letter of the former auditor of the Wasmer Schroeder High Yield Municipal Bond Fund, a series of Advisors Series Trust which re-organized into the Schwab High Yield Municipal Bond Fund (effective July 1, 2021, Schwab High Yield Municipal Bond Fund changed its name to Schwab Opportunistic Municipal Bond Fund), a series of Schwab Investments, as required by Item 13(a)(4) of Form N-CSR. Other than the aforementioned correction, this amended Form N-CSR does not reflect events occurring after the filing of the original Form N-CSR, or modify or update the disclosures contained therein.
Item 1: Report(s) to Shareholders.
Annual Report | August 31, 2020
Schwab Taxable Bond Funds
Schwab Treasury Inflation
Protected Securities Index Fund
Schwab U.S. Aggregate
Bond Index Fund
Schwab Short-Term
Bond Index Fund
| New Notice Regarding Shareholder Report Delivery Options |
| Beginning on January 1, 2021, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary (such as a bank or broker-dealer). Instead, the reports will be made available on a fund’s website www.schwabfunds.com/schwabfunds_prospectus, and you will be notified by mail each time a report is posted and the mailing will provide a website link to access the report. You will continue to receive other fund regulatory documents (such as prospectuses or supplements) in paper unless you have elected to receive all fund documents electronically. |
| If you would like to receive a fund’s future shareholder reports in paper free of charge after January 1, 2021, you can make that request: |
| • If you invest through Charles Schwab & Co, Inc. (broker-dealer), by calling 1-866-345-5954 and using the unique identifier attached to this mailing; |
| • If you invest through another financial intermediary (such as a bank or broker-dealer) by contacting them directly; or |
| • If owned directly through a fund by calling 1-800-407-0256. |
| If you already receive shareholder reports and other fund documents electronically, you will not be affected by this change and you need not take any action. |
Three ways for investors to include bond funds in an asset allocation strategy.
Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM)
Distributor: Charles Schwab & Co., Inc. (Schwab)
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
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 may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabfunds.com/schwabfunds_prospectus.
| Total Returns for the 12 Months Ended August 31, 2020 |
| Schwab Treasury Inflation Protected Securities Index Fund (Ticker Symbol: SWRSX) | 8.88% |
| Bloomberg Barclays US Treasury Inflation-Linked Bond Index (Series-L)SM | 8.99% |
| Fund Category: Morningstar Inflation Protected Bond1 | 8.00% |
| Performance Details | pages 7-9 |
| |
| Schwab U.S. Aggregate Bond Index Fund (Ticker Symbol: SWAGX) | 6.33% |
| Bloomberg Barclays US Aggregate Bond Index | 6.47% |
| Fund Category: Morningstar Intermediate Core Bond1 | 6.17% |
| Performance Details | pages 10-12 |
| |
| Schwab Short-Term Bond Index Fund (Ticker Symbol: SWSBX) | 4.59% |
| Bloomberg Barclays US Government/Credit 1-5 Year Index | 4.72% |
| Fund Category: Morningstar Short-Term Bond1 | 3.28% |
| Performance Details | pages 13-15 |
All total return figures on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
Index ownership — Bloomberg Index Services Limited and its affiliates (collectively, Bloomberg) and Bloomberg’s licensors, including Barclays’, own all proprietary rights in the Bloomberg Barclays Indices. The funds are not sponsored, endorsed, sold or promoted by Bloomberg or Barclays. Neither Bloomberg nor Barclays endorses or recommends the funds. Neither Bloomberg nor Barclays guarantees the timeliness, accurateness or completeness of any data or information relating to the Bloomberg Barclays Indices, and neither shall be liable in any way in respect of the use or accuracy of the Bloomberg Barclays Indices.
| 1 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
Jonathan de St. Paer
President of Charles Schwab
Investment Management, Inc.
and the funds covered
in this report.
Dear Shareholder,
The 12-month reporting period ended August 31, 2020 has been witness to a number of historic events that have significantly impacted lives on both a personal and economic level. This period was also one of the most volatile investing environments on record. Up until the last week of February, the outlook for bond yields was favorable. U.S. stock market performance was also strong, with the longest bull market cycle in history continuing and major equity indices hitting new highs. But the rapid spread of COVID-19 around the world brought many economies to an abrupt halt. A new record was set for the fastest U.S. market decline, with the S&P 500® Index, a bellwether for the overall U.S. stock market, dropping 30% over just 22 trading days in late February and early March. Against this backdrop, the U.S. Federal Reserve cut interest rates to near zero in March and the bond market generally saw prices rise as yields pushed down to historic lows. (Bond yields and bond prices typically move in opposite directions.) By the end of the reporting period, however, stocks had rebounded. Major equity indices reached new highs in August, while bond yields remained relatively low. In this environment, the broad U.S. bond market, as measured by the Bloomberg Barclays US Aggregate Bond Index, returned 6.5% during the 12-month period ended August 31, 2020, while the S&P 500® Index returned 21.9% during the same period.
This varied performance of asset classes is a good reminder of the importance of diversification. At Charles Schwab Investment Management, we believe that maintaining exposure to a mix of asset classes that perform differently over time is one of the best ways to help weather market cycles. In addition to providing diversification, an allocation to fixed income can also provide income and help to manage overall portfolio volatility. Whether you are looking to capture the performance of U.S. investment grade bonds, short-term bonds, or inflation-protected securities, the Schwab Taxable Bond Funds are intended to offer simple, low-cost access to the fixed income market and can serve as part of the core of a diversified portfolio.
Thank you for investing with Charles Schwab Investment Management. For more information about the Schwab Taxable Bond Funds, please continue reading this report. In addition, you can find further details about these funds by visiting our website at www.schwabfunds.com. We are also happy to hear from you at 1-877-824-5615.
Sincerely,
“ In addition to providing diversification, an allocation to fixed income can also provide income and help to manage overall portfolio volatility.”
Past performance cannot guarantee future results.
Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.
Management views may have changed since the report date.
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
The Investment Environment
For the 12-month reporting period ended August 31, 2020, most fixed-income markets generated positive returns. Up until the final week of the first half of the reporting period, global equity markets were positive, with major market indices hitting new highs in mid-February. However, beginning in late February, the COVID-19 outbreak wreaked havoc on the global economy, prompting dramatic social distancing restrictions, shuttering businesses, and resulting in a new record for the fastest U.S. market decline with the S&P 500® Index, a bellwether for the overall U.S. stock market, dropping 30% in just 22 trading days in late February and early March. As investors flocked to the perceived safety of fixed-income securities, bond prices soared as yields were driven to historically low levels. (Bond yields and bond prices typically move in opposite directions.) By the end of March, governments and central banks around the world had begun passing extensive emergency rescue and fiscal stimulus measures in an effort to support their economies. While the extraordinary response prompted a rally in global equity markets from their March lows, particularly in the U.S., historic volatility remained. By the end of the reporting period, several major market indices exceeded their February highs. Amid market volatility over the reporting period, most bonds rallied, driving yields lower. For the reporting period, the Bloomberg Barclays US Aggregate Bond Index, representing the broad U.S. bond market, returned 6.47%, while the Bloomberg Barclays US Government/Credit 1-5 Year Index returned 4.72%. The Bloomberg Barclays US Treasury Inflation-Linked Bond Index (Series-L) returned 8.99%.
Prior to the onset of the COVID-19 pandemic, the U.S. economy, despite ongoing trade tensions with China, maintained steady growth in its record eleventh year of expansion, albeit at a slowing pace. In December, an announced partial trade resolution between the U.S. and China helped ease market tensions. U.S. gross domestic product (GDP) grew at an annual rate of 2.1% in the third and fourth quarters of 2019, up from 2.0% in the second quarter, but in the fallout of the COVID-19 pandemic, the U.S. entered recessionary territory with record speed. U.S. GDP fell steeply, declining 5.0% and 31.4% for the first and second quarters of 2020, respectively, with the second quarter representing the largest contraction in U.S. GDP since 1947. Unemployment remained at record lows through February before a record number of unemployment claims in March resulted in the largest monthly increase in the U.S. unemployment rate since January 1975. In April, this record was broken again when unemployment skyrocketed, rising to the highest level since the Great Depression. Unemployment declined in May through August, dropping below double digits in August. Consumer confidence, which remained solid through February, also fell steeply in March and April. By June, consumer confidence recovered before falling again in July and August. Inflation crept up slightly in January and February, before retreating in March, April, and May, with April seeing the largest monthly decline since December 2008. Inflation began to climb again in June.
Yields of U.S. Treasury Securities: Effective Yields of Three-Month, Two-Year and Ten-Year Treasuries
Index figures assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized. Past performance is not an indication of future results.
For index definitions, please see the Glossary.
Data source: Bloomberg L.P.
Nothing in this report represents a recommendation of a security by the investment adviser.
Management views may have changed since the report date.
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
The Investment Environment (continued)
Many central banks around the world, including the U.S. Federal Reserve (Fed), reduced their policy rates over the reporting period, while others maintained low—and for some international central banks, negative—interest rates. In the U.S., the Fed enacted three interest rate cuts in the second half of 2019—in July, September, and October, amid growing signs of global economic weakness that threatened to dampen U.S. economic growth, along with continued low inflation and weakness in manufacturing. As the economic implications of the COVID-19 pandemic grew, the Fed cut interest rates twice in 2020—by 0.50% in early March and by 1.00% in mid-March—resulting in a federal funds rate of 0.00% to 0.25%. In addition, the Fed also announced extensive emergency measures to support the economy in light of the COVID-19 pandemic, including large purchases of U.S. Treasuries and other securities to support smooth market function, facilitating the flow of credit to municipalities, new financing for employers, consumers, and businesses, and the establishment of facilities to support credit to businesses and consumers alike. In August, the Fed announced that it was shifting its interest rate policy approach to potentially allow inflation to rise above its 2% target for periods of time even in times of rising employment.
Outside the U.S., central banks were similarly accommodative. The European Central Bank held interest rates at 0.00%, unchanged since March 2016 and launched a new asset purchase program to counter the impact of the COVID-19 pandemic. The Bank of Japan upheld its short-term interest rate target of -0.1%, also unchanged since 2016, and increased the annual pace of its purchases of exchange-traded funds (ETFs) and other assets. The Bank of England lowered its key official bank rate from 0.75% to 0.10% in two emergency rate cuts in March.
Over the reporting period, as a result of changes by the Fed, as equity markets plummeted, and as investors sought the perceived safety of asset classes such as fixed-income securities, demand for U.S. Treasuries surged, driving yields to historic lows. Over the reporting period, short-term rates fell steeply in response to the federal funds rate cuts, with the three-month U.S. Treasury yield falling from 1.99% to 0.11%. Longer-term yields, which are typically more influenced by economic growth and inflation expectations also fell, with the yield on the 10-year U.S. Treasury falling from 1.50% to 0.72%. Outside the U.S., bond yields generally remained low.
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
 | Matthew Hastings, CFA, Vice President and Head of Taxable Bond Strategies, leads the portfolio management team for Schwab’s taxable bond funds and fixed-income ETFs. He also has overall responsibility for all aspects of the management of the funds. Prior to joining CSIM in 1999, Mr. Hastings was in fixed-income sales and trading at Lehman Brothers. He has worked in the fixed-income securities industry since 1996. |
 | Steven Hung, Senior Portfolio Manager, is responsible for the day-to-day co-management of each of the funds, except for the Schwab Treasury Inflation Protected Securities Index Fund. His primary focus is corporate bonds. Prior to joining CSIM in 1999, Mr. Hung was an associate in Schwab’s management training program for nine months. In that role, he worked as a clerk on the options trading floor of the Pacific Coast Stock Exchange. |
 | Mark McKissick, CFA, Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2016, Mr. McKissick worked at Denver Investments for 17 years, most recently as a director of fixed income and portfolio manager. In this role he co-managed multiple bond strategies, as well as oversaw the firm’s fixed-income business including the investment process, client service and other administrative functions. |
 | Alfonso Portillo, Jr., Senior Portfolio Manager, is responsible for the day-to-day co-management of Schwab U.S. Aggregate Bond Index Fund. His primary focus is securitized products. Prior to joining CSIM in 2007, Mr. Portillo worked for ten years at Pacific Investment Management Company, most recently as a vice president and member of the mortgage- and asset-backed portfolio management team. He has worked in fixed-income asset management since 1996. |
Schwab Taxable Bond Funds | Annual Report
Schwab Treasury Inflation Protected Securities Index Fund as of August 31, 2020
The Schwab Treasury Inflation Protected Securities Index Fund (the fund) seeks to track as closely as possible, before fees and expenses, the total return of an index composed of inflation-protected U.S. Treasury securities. To pursue its investment objective, the fund generally invests in securities that are included in the Bloomberg Barclays US Treasury Inflation-Linked Bond Index (Series-L)SM (the comparative index). Under normal circumstances, the fund will invest at least 90% of its net assets (including, for this purpose, any borrowings for investment purposes) in securities included in the comparative index. For more information about the fund’s investment objective and principal investment strategies, please see the fund’s prospectus.
Market Highlights. Most fixed-income markets generated positive returns over the 12-month reporting period ended August 31, 2020 although they experienced volatility due to the growing COVID-19 pandemic. Up until late February, despite ongoing trade tensions, the U.S. economy continued to exhibit steady growth, albeit at a declining pace. In September and October 2019, amid growing signs of global economic weakness that threatened to dampen U.S. economic growth, along with continued low inflation and weakness in manufacturing, the Federal Reserve (Fed) cut short-term interest rates twice and bond prices rose steadily throughout most of the first half of the period. (Bond yields and bond prices typically move in opposite directions.) However, beginning in late February, the rapidly expanding COVID-19 pandemic drove a sell-off that sent major equity indices into bear-market territory in record time. U.S. Treasury security prices rallied while corporate and higher-risk bond prices dropped. In response, the Fed enacted two emergency rate cuts—by 0.50% in early March and by 1.00% in mid-March—and announced extensive emergency measures to support the economy in light of the pandemic, including massive purchases of U.S. Treasuries to support smooth market functioning. By late March, corporate and higher-risk bonds began recovering and maintained mostly upward momentum through the end of the reporting period.
U.S. Treasury yields ended the reporting period near historic lows with the yield on the three-month U.S. Treasury declining from 1.99% to 0.11% over the reporting period while the 10-year U.S. Treasury yield slid from 1.50% to 0.72%. In August, the Fed announced that it was shifting its interest rate policy approach to potentially allow inflation to rise above its 2% target for periods of time. For the reporting period, U.S. Treasury Inflation Protected Securities generally outperformed both shorter- and longer-term U.S. Treasuries.
Performance. The fund returned 8.88% for the 12-month period ended August 31, 2020, while the comparative index returned 8.99%.
Contributors and Detractors. Consistent with its objective and strategies, the fund closely tracked the primary risk exposures of the comparative index, which meant keeping the fund’s duration and maturity allocations similarly aligned. The fund’s slight underperformance was primarily attributable to expenses.
Management views and portfolio holdings may have changed since the report date.
Schwab Taxable Bond Funds | Annual Report
Schwab Treasury Inflation Protected Securities Index Fund
Performance and Fund Facts as of August 31, 2020
Portfolio Composition % of investments
These charts show two different views of the fund’s portfolio: by type of security and credit quality of the security.
By Security Type1
| Weighted Average Maturity3 | 8.5 Yrs |
| Weighted Average Duration3 | 7.9 Yrs |
Portfolio holdings may have changed since the report date.
U.S. Treasury Inflation-Protected Securities (TIPS) generally have lower yields than conventional fixed rate bonds and will likely decline in price during periods of deflation, which could result in losses.
| 1 | The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets. |
| 2 | Includes the fund’s position in money market mutual funds registered under the Investment Company Act of 1940, as amended. |
| 3 | See Glossary for definitions of maturity and duration. |
| 4 | Bloomberg Barclays Index Rating: Based on the middle rating of Moody’s, S&P and Fitch; when a rating from only two agencies is available, the lower is used; when only one agency rates a bond, that rating is used. In cases where explicit bond level ratings may not be available, other sources may be used to classify securities by credit quality. Source: Bloomberg Index Service Ltd. |
Schwab Taxable Bond Funds | Annual Report
Schwab Treasury Inflation Protected Securities Index Fund
Performance and Fund Facts as of August 31, 2020 (continued)
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 may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabfunds.com/schwabfunds_prospectus.
Performance of Hypothetical $10,000 Investment (August 31, 2010 – August 31, 2020)1
| Fund and Inception Date | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Treasury Inflation Protected Securities Index Fund (3/31/06) | 8.88% | 4.46% | 3.46% |
| Bloomberg Barclays US Treasury Inflation-Linked Bond Index (Series-L)SM | 8.99% | 4.56% | 3.68% |
| Fund Category: Morningstar Inflation Protected Bond 2 | 8.00% | 3.95% | 3.08% |
| Fund Expense Ratio3: 0.05% |
| 30-Day SEC Yield | 5.39% |
| 12-Month Distribution Yield | 1.41% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership — Bloomberg Index Services Limited and its affiliates (collectively, Bloomberg) and Bloomberg’s licensors, including Barclays’, own all proprietary rights in the Bloomberg Barclays Indices. The Schwab Treasury Inflation Protected Securities Index Fund is not sponsored, endorsed, sold or promoted by Bloomberg or Barclays. Neither Bloomberg nor Barclays endorses or recommends the fund. Neither Bloomberg nor Barclays guarantees the timeliness, accurateness or completeness of any data or information relating to the Bloomberg Barclays Indices, and neither shall be liable in any way in respect of the use or accuracy of the Bloomberg Barclays Indices.
| 1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund as of August 31, 2020
The Schwab U.S. Aggregate Bond Index Fund (the fund) seeks to track as closely as possible, before fees and expenses, the total return of an index that measures the performance of the broad U.S. investment-grade bond market. To pursue its goal, the fund generally invests in securities that are included in the Bloomberg Barclays US Aggregate Bond Index (the comparative index). For more information about the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.
Market Highlights. Most fixed-income markets generated positive returns over the 12-month reporting period ended August 31, 2020 although they experienced volatility due to the growing COVID-19 pandemic. Up until late February, despite ongoing trade tensions, the U.S. economy continued to exhibit steady growth, albeit at a declining pace. In September and October 2019, amid growing signs of global economic weakness that threatened to dampen U.S. economic growth, along with continued low inflation and weakness in manufacturing, the Federal Reserve (Fed) cut short-term interest rates twice and bond prices rose steadily throughout most of the first half of the period. (Bond yields and bond prices typically move in opposite directions.) However, beginning in late February, the rapidly expanding COVID-19 pandemic drove a sell-off that sent major equity indices into bear-market territory in record time. U.S. Treasury security prices rallied while corporate and higher-risk bond prices dropped. In response, the Fed enacted two emergency rate cuts—by 0.50% in early March and by 1.00% in mid-March—and announced extensive emergency measures to support the economy in light of the pandemic, including massive purchases of U.S. Treasuries to support smooth market functioning. By late March, corporate and higher-risk bonds began recovering and maintained mostly upward momentum through the end of the reporting period.
U.S. Treasury yields ended the reporting period near historic lows with the yield on the three-month U.S. Treasury declining from 1.99% to 0.11% over the reporting period while the 10-year U.S. Treasury yield slid from 1.50% to 0.72%.
The corporate bond market experienced a significant increase of new bond supply during the period as issuers took advantage of low interest rates to refinance existing debt or issue new debt. After declining gradually through December then flattening for two months, credit spreads on investment-grade securities spiked in March to levels unseen since the 2008-2009 financial crisis. Spreads subsequently moderated but still ended the reporting period slightly higher than where they began. Spreads on mortgage-backed securities generally followed suit.
Performance. The fund returned 6.33% for the 12-month period ended August 31, 2020, while the index returned 6.47%.
Contributors and Detractors. Consistent with its objective and strategies, the fund closely tracked the primary risk exposures of the comparative index, which meant keeping the fund’s duration and maturity allocations similarly aligned. The fund’s slight underperformance was primarily attributable to expenses. Amid the market volatility over the reporting period, the fund experienced outflows in March, followed by inflows in April through August, that led the portfolio management team to trade prudently seeking to minimize transaction costs.
In addition, the fund held positions in TBAs, or “to-be-announced” securities, which are mortgage-backed bonds that settle on a forward date. The fund’s average month-end position in these securities was 2.8%, with a minimum exposure of 1.5% and maximum exposure of 5.5% over the period.
Management views and portfolio holdings may have changed since the report date.
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Performance and Fund Facts as of August 31, 2020
Portfolio Composition % of investments
These charts show two different views of the fund’s portfolio: by type of security and credit quality of the security.
By Security Type1
| Weighted Average Maturity4 | 8.0 Yrs |
| Weighted Average Duration4 | 6.0 Yrs |
Portfolio holdings may have changed since the report date.
| 1 | The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets. |
| 2 | The fund may seek to obtain exposure to U.S. agency mortgage pass-through securities, in part or in full, through the use of “to-be-announced” or “TBA” transactions, which are standardized contracts for future delivery of mortgage pass-through securities in which the exact mortgage pools to be delivered are not specified until a few days prior to settlement. These transactions represented approximately 2.8% of net assets on August 31, 2020. |
| 3 | Includes the fund’s position in money market mutual funds registered under the Investment Company Act of 1940, as amended. |
| 4 | See Glossary for definitions of maturity and duration. |
| 5 | Bloomberg Barclays Index Rating: Based on the middle rating of Moody’s, S&P and Fitch; when a rating from only two agencies is available, the lower is used; when only one agency rates a bond, that rating is used. In cases where explicit bond level ratings may not be available, other sources may be used to classify securities by credit quality. Source: Bloomberg Index Service Ltd. |
| 6 | Less than 0.05%. |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Performance and Fund Facts as of August 31, 2020 (continued)
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 may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabfunds.com/schwabfunds_prospectus.
Performance of Hypothetical $10,000 Investment (February 23, 2017 – August 31, 2020)1
| Fund and Inception Date | 1 Year | Since Inception |
| Fund: Schwab U.S. Aggregate Bond Index Fund (2/23/17) | 6.33% | 5.09% |
| Bloomberg Barclays US Aggregate Bond Index | 6.47% | 5.24% |
| Fund Category: Morningstar Intermediate Core Bond 2 | 6.17% | N/A |
| Fund Expense Ratio3: 0.04% |
| 30-Day SEC Yield | 1.13% |
| 12-Month Distribution Yield | 2.51% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership — Bloomberg Index Services Limited and its affiliates (collectively, Bloomberg) and Bloomberg’s licensors, including Barclays’, own all proprietary rights in the Bloomberg Barclays Indices. The Schwab U.S. Aggregate Bond Index Fund is not sponsored, endorsed, sold or promoted by Bloomberg or Barclays. Neither Bloomberg nor Barclays endorses or recommends the fund. Neither Bloomberg nor Barclays guarantees the timeliness, accurateness or completeness of any data or information relating to the Bloomberg Barclays Indices, and neither shall be liable in any way in respect of the use or accuracy of the Bloomberg Barclays Indices.
| 1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund as of August 31, 2020
The Schwab Short-Term Bond Index Fund (the fund) seeks to track as closely as possible, before fees and expenses, the total return of an index composed of U.S. investment-grade government related and corporate bonds with maturities between 1-5 years. To pursue its goal, the fund generally invests in securities that are included in the Bloomberg Barclays US Government/Credit 1-5 Year Index (the comparative index). For more information about the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.
Market Highlights. Most fixed-income markets generated positive returns over the 12-month reporting period ended August 31, 2020 although they experienced volatility due to the growing COVID-19 pandemic. Up until late February, despite ongoing trade tensions, the U.S. economy continued to exhibit steady growth, albeit at a declining pace. In September and October 2019, amid growing signs of global economic weakness that threatened to dampen U.S. economic growth, along with continued low inflation and weakness in manufacturing, the Federal Reserve (Fed) cut short-term interest rates twice and bond prices rose steadily throughout most of the first half of the period. (Bond yields and bond prices typically move in opposite directions.) However, beginning in late February, the rapidly expanding COVID-19 pandemic drove a sell-off that sent major equity indices into bear-market territory in record time. U.S. Treasury security prices rallied while corporate and higher-risk bond prices dropped. In response, the Fed enacted two emergency rate cuts—by 0.50% in early March and by 1.00% in mid-March—and announced extensive emergency measures to support the economy in light of the pandemic, including massive purchases of U.S. Treasuries to support smooth market functioning. By late March, corporate and higher-risk bonds began recovering and maintained mostly upward momentum through the end of the reporting period.
U.S. Treasury yields ended the reporting period near historic lows with the yield on the three-month U.S. Treasury declining from 1.99% to 0.11% over the reporting period while the 10-year U.S. Treasury yield slid from 1.50% to 0.72%.
The corporate bond market experienced a significant increase of new bond supply during the period as issuers took advantage of low interest rates to refinance existing debt or issue new debt. After declining gradually through December then flattening for two months, credit spreads on short-term investment-grade securities spiked in March to levels unseen since the 2008-2009 financial crisis. Spreads subsequently moderated but still ended the reporting period slightly higher than where they began.
Performance. The fund returned 4.59% for the 12-month period ended August 31, 2020, while the index returned 4.72%.
Contributors and Detractors. Consistent with its objective and strategies, the fund closely tracked the primary risk exposures of the comparative index, which meant keeping the fund’s duration and maturity allocations similarly aligned. The fund’s slight underperformance was primarily attributable to expenses. Amid market volatility over the reporting period, the fund experienced outflows in March, followed by inflows in April through August, that led the portfolio management team to trade prudently seeking to minimize transaction costs.
Management views and portfolio holdings may have changed since the report date.
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Performance and Fund Facts as of August 31, 2020
Portfolio Composition % of investments
These charts show two different views of the fund’s portfolio: by type of security and credit quality of the security.
By Security Type1
| Weighted Average Maturity3 | 2.9 Yrs |
| Weighted Average Duration3 | 2.8 Yrs |
Portfolio holdings may have changed since the report date.
| 1 | The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets. |
| 2 | Includes the fund’s position in money market mutual funds registered under the Investment Company Act of 1940, as amended. |
| 3 | See Glossary for definitions of maturity and duration. |
| 4 | Bloomberg Barclays Index Rating: Based on the middle rating of Moody’s, S&P and Fitch; when a rating from only two agencies is available, the lower is used; when only one agency rates a bond, that rating is used. In cases where explicit bond level ratings may not be available, other sources may be used to classify securities by credit quality. Source: Bloomberg Index Service Ltd. |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Performance and Fund Facts as of August 31, 2020 (continued)
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 may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabfunds.com/schwabfunds_prospectus.
Performance of Hypothetical $10,000 Investment (February 23, 2017 – August 31, 2020)1
| Fund and Inception Date | 1 Year | Since Inception |
| Fund: Schwab Short-Term Bond Index Fund (2/23/17) | 4.59% | 3.16% |
| Bloomberg Barclays US Government/Credit 1-5 Year Index | 4.72% | 3.29% |
| Fund Category: Morningstar Short-Term Bond 2 | 3.28% | N/A |
| Fund Expense Ratio3: 0.06% |
| 30-Day SEC Yield | 0.32% |
| 12-Month Distribution Yield | 2.00% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership — Bloomberg Index Services Limited and its affiliates (collectively, Bloomberg) and Bloomberg’s licensors, including Barclays’, own all proprietary rights in the Bloomberg Barclays Indices. The Schwab Short-Term Bond Index Fund is not sponsored, endorsed, sold or promoted by Bloomberg or Barclays. Neither Bloomberg nor Barclays endorses or recommends the fund. Neither Bloomberg nor Barclays guarantees the timeliness, accurateness or completeness of any data or information relating to the Bloomberg Barclays Indices, and neither shall be liable in any way in respect of the use or accuracy of the Bloomberg Barclays Indices.
| 1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. |
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning March 1, 2020 and held through August 31, 2020.
Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs. Therefore, the hypothetical return lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | Expense Ratio
(Annualized)1 | Beginning
Account Value
at 3/1/20 | Ending
Account Value
(Net of Expenses)
at 8/31/20 | Expenses Paid
During Period
3/1/20-8/31/202 |
| Schwab Treasury Inflation Protected Securities Index Fund | | | | |
| Actual Return | 0.05% | $1,000.00 | $1,058.40 | $0.26 |
| Hypothetical 5% Return | 0.05% | $1,000.00 | $1,024.85 | $0.25 |
| Schwab U.S. Aggregate Bond Index Fund | | | | |
| Actual Return | 0.04% | $1,000.00 | $1,029.10 | $0.20 |
| Hypothetical 5% Return | 0.04% | $1,000.00 | $1,024.90 | $0.20 |
| Schwab Short-Term Bond Index Fund | | | | |
| Actual Return | 0.06% | $1,000.00 | $1,022.10 | $0.30 |
| Hypothetical 5% Return | 0.06% | $1,000.00 | $1,024.80 | $0.31 |
| 1 | Based on the most recent six-month expense ratio. |
| 2 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by 366 days of the fiscal year. |
Schwab Taxable Bond Funds | Annual Report
Schwab Treasury Inflation Protected Securities Index Fund
Financial Statements
Financial Highlights
| | 9/1/19–
8/31/20 | 9/1/18–
8/31/19 | 9/1/17–
8/31/18 | 9/1/16–
8/31/17 | 9/1/15–
8/31/16 | |
| Per-Share Data |
| Net asset value at beginning of period | $11.50 | $10.97 | $11.18 | $11.39 | $10.94 | |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.12 | 0.25 | 0.36 | 0.23 | 0.17 | |
| Net realized and unrealized gains (losses) | 0.88 | 0.55 | (0.28) | (0.20) | 0.39 | |
| Total from investment operations | 1.00 | 0.80 | 0.08 | 0.03 | 0.56 | |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.17) | (0.27) | (0.29) | (0.24) | (0.08) | |
| Distributions from net realized gains | — | — | — | — | (0.03) | |
| Total distributions | (0.17) | (0.27) | (0.29) | (0.24) | (0.11) | |
| Net asset value at end of period | $12.33 | $11.50 | $10.97 | $11.18 | $11.39 | |
| Total return | 8.88% | 7.42% | 0.71% | 0.35% | 5.22% | |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Total expenses | 0.05% | 0.05% | 0.05% | 0.28% 2 | 0.61% | |
| Net operating expenses | N/A | N/A | N/A 3 | 0.11% 2 | 0.19% | |
| Net investment income (loss) | 1.05% | 2.27% | 3.29% | 2.07% | 1.54% | |
| Portfolio turnover rate | 29% | 25% | 18% | 17% | 24% | |
| Net assets, end of period (x 1,000,000) | $1,429 | $923 | $746 | $565 | $309 | |
| |
1
Calculated based on the average shares outstanding during the period.
2
Effective March 1, 2017 the annual operating expense ratio was reduced. The ratio presented for the period ended 8/31/17 is a blended ratio.
3
Effective March 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated.
Schwab Taxable Bond Funds | Annual Report
Schwab Treasury Inflation Protected Securities Index Fund
Portfolio Holdings as of August 31, 2020
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website at www.schwabfunds.com/schwabfunds_prospectus.
For fixed-rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued). For variable-rate obligations, the rate shown is the rate as of the report date based on each security’s rate reset date. The reference rate and spread used is shown parenthetically in the security description, if available; if not, the reference rate is described in a footnote. The maturity date shown for all the securities is the final legal maturity. Inflation-protected securities are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these instruments is generally fixed at issuance at a rate lower than typical bonds or notes. Over the life of an inflation-indexed instrument interest will be paid based on a principal value, which is adjusted for any inflation or deflation.
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Treasuries 99.8% of net assets |
| U.S. Treasury Inflation Protected Securities |
| 0.13%, 01/15/22 | 48,105,720 | 49,084,623 |
| 0.13%, 04/15/22 | 48,022,762 | 49,110,819 |
| 0.13%, 07/15/22 | 45,895,265 | 47,349,356 |
| 0.13%, 01/15/23 | 51,675,699 | 53,584,427 |
| 0.63%, 04/15/23 | 43,711,444 | 46,037,276 |
| 0.38%, 07/15/23 | 50,572,095 | 53,450,265 |
| 0.63%, 01/15/24 | 48,728,220 | 52,195,634 |
| 0.50%, 04/15/24 | 32,593,500 | 34,904,437 |
| 0.13%, 07/15/24 | 47,570,141 | 50,730,968 |
| 0.13%, 10/15/24 | 36,772,314 | 39,372,761 |
| 0.25%, 01/15/25 | 46,953,208 | 50,548,705 |
| 2.38%, 01/15/25 | 28,761,010 | 33,741,035 |
| 0.13%, 04/15/25 | 36,870,905 | 39,649,946 |
| 0.38%, 07/15/25 | 44,123,475 | 48,346,581 |
| 0.63%, 01/15/26 | 38,598,151 | 42,952,584 |
| 2.00%, 01/15/26 | 20,282,428 | 24,134,835 |
| 0.13%, 07/15/26 | 36,484,396 | 39,966,971 |
| 0.38%, 01/15/27 | 36,316,370 | 40,404,792 |
| 2.38%, 01/15/27 | 17,131,539 | 21,364,121 |
| 0.38%, 07/15/27 | 36,967,960 | 41,531,838 |
| 0.50%, 01/15/28 | 38,957,670 | 44,147,084 |
| 1.75%, 01/15/28 | 17,509,134 | 21,537,731 |
| 3.63%, 04/15/28 | 15,971,422 | 22,131,268 |
| 0.75%, 07/15/28 | 34,557,867 | 40,273,906 |
| 0.88%, 01/15/29 | 28,558,137 | 33,651,051 |
| 2.50%, 01/15/29 | 15,340,606 | 20,274,236 |
| 3.88%, 04/15/29 | 19,377,054 | 28,214,265 |
| 0.25%, 07/15/29 | 33,684,233 | 38,154,797 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 0.13%, 01/15/30 | 42,449,525 | 47,535,014 |
| 0.13%, 07/15/30 | 16,240,786 | 18,338,789 |
| 3.38%, 04/15/32 | 6,605,405 | 10,184,233 |
| 2.13%, 02/15/40 | 8,851,839 | 13,735,647 |
| 2.13%, 02/15/41 | 12,769,510 | 20,042,051 |
| 0.75%, 02/15/42 | 21,585,153 | 27,409,072 |
| 0.63%, 02/15/43 | 16,085,849 | 20,003,847 |
| 1.38%, 02/15/44 | 22,072,994 | 31,730,793 |
| 0.75%, 02/15/45 | 24,283,365 | 31,281,912 |
| 1.00%, 02/15/46 | 13,816,277 | 18,876,371 |
| 0.88%, 02/15/47 | 15,395,216 | 20,745,061 |
| 1.00%, 02/15/48 | 14,377,277 | 20,095,191 |
| 1.00%, 02/15/49 | 13,987,877 | 19,787,508 |
| 0.25%, 02/15/50 | 17,066,257 | 20,426,446 |
| Total Treasuries |
| (Cost $1,291,887,041) | | 1,427,038,247 |
| Security | Number
of Shares | Value ($) |
| Other Investment Company 0.1% of net assets |
| |
| Money Market Fund 0.1% |
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.04% (a) | 866,129 | 866,129 |
| Total Other Investment Company |
| (Cost $866,129) | | 866,129 |
| (a) | The rate shown is the 7-day yield. |
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2020 (see financial note 2(a) for additional information):
| Description | Quoted Prices in
Active Markets for
Identical Assets
(Level 1) | Other Significant
Observable Inputs
(Level 2) | Significant
Unobservable Inputs
(Level 3) | Total | |
| Assets | | | | | |
| Treasuries | $— | $1,427,038,247 | $— | $1,427,038,247 | |
| Other Investment Company1 | 866,129 | — | — | 866,129 | |
| Total | $866,129 | $1,427,038,247 | $— | $1,427,904,376 | |
| 1 | As categorized in Portfolio Holdings. |
Schwab Taxable Bond Funds | Annual Report
Schwab Treasury Inflation Protected Securities Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Fund investments in underlying mutual funds are classified as Level 1, without consideration to the classification level of the investments held by the underlying mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Taxable Bond Funds | Annual Report
Schwab Treasury Inflation Protected Securities Index Fund
Statement of Assets and Liabilities
As of August 31, 2020
| Assets |
| Investments in unaffiliated issuers, at value (cost $1,292,753,170) | | $1,427,904,376 |
| Receivables: | | |
| Investments sold | | 8,185,736 |
| Fund shares sold | | 3,470,299 |
| Interest | | 1,500,221 |
| Dividends | + | 67 |
| Total assets | | 1,441,060,699 |
| Liabilities |
| Payables: | | |
| Investments bought | | 10,739,856 |
| Investment adviser fees | | 57,376 |
| Fund shares redeemed | + | 1,227,498 |
| Total liabilities | | 12,024,730 |
| Net Assets |
| Total assets | | 1,441,060,699 |
| Total liabilities | – | 12,024,730 |
| Net assets | | $1,429,035,969 |
| Net Assets by Source | | |
| Capital received from investors | | 1,294,348,572 |
| Total distributable earnings | | 134,687,397 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $1,429,035,969 | | 115,865,930 | | $12.33 |
| | | | | |
Schwab Taxable Bond Funds | Annual Report
Schwab Treasury Inflation Protected Securities Index Fund
Statement of Operations
For the period September 1, 2019 through August 31, 2020
| Investment Income (Loss) |
| Interest | | $12,058,644 |
| Dividends | + | 8,481 |
| Total investment income | | 12,067,125 |
| Expenses |
| Investment adviser fees | | 548,547 |
| Total expenses | – | 548,547 |
| Net investment income | | 11,518,578 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on investments | | 1,278,452 |
| Net change in unrealized appreciation (depreciation) on investments | + | 89,469,313 |
| Net realized and unrealized gains | | 90,747,765 |
| Increase in net assets resulting from operations | | $102,266,343 |
Schwab Taxable Bond Funds | Annual Report
Schwab Treasury Inflation Protected Securities Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
| Operations | |
| | 9/1/19-8/31/20 | 9/1/18-8/31/19 |
| Net investment income | | $11,518,578 | $18,694,759 |
| Net realized gains (losses) | | 1,278,452 | (2,068,223) |
| Net change in unrealized appreciation (depreciation) | + | 89,469,313 | 47,330,306 |
| Increase in net assets from operations | | 102,266,343 | 63,956,842 |
| Distributions to Shareholders | |
| Total distributions | | ($14,928,816) | ($19,431,771) |
| Transactions in Fund Shares | | | |
| | | 9/1/19-8/31/20 | 9/1/18-8/31/19 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 64,991,716 | $758,806,135 | 31,229,259 | $339,938,125 |
| Shares reinvested | | 1,092,527 | 12,302,672 | 1,437,963 | 15,569,916 |
| Shares redeemed | + | (30,488,166) | (352,832,230) | (20,392,723) | (222,851,445) |
| Net transactions in fund shares | | 35,596,077 | $418,276,577 | 12,274,499 | $132,656,596 |
| Shares Outstanding and Net Assets | | | |
| | | 9/1/19-8/31/20 | 9/1/18-8/31/19 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 80,269,853 | $923,421,865 | 67,995,354 | $746,240,198 |
| Total increase | + | 35,596,077 | 505,614,104 | 12,274,499 | 177,181,667 |
| End of period | | 115,865,930 | $1,429,035,969 | 80,269,853 | $923,421,865 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Financial Statements
Financial Highlights
| | 9/1/19–
8/31/20 | 9/1/18–
8/31/19 | 9/1/17–
8/31/18 | 2/23/17 1–
8/31/17 | | |
| Per-Share Data |
| Net asset value at beginning of period | $10.46 | $9.78 | $10.16 | $10.00 | | |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)2 | 0.25 | 0.28 | 0.25 | 0.12 | | |
| Net realized and unrealized gains (losses) | 0.40 | 0.69 | (0.37) | 0.17 | | |
| Total from investment operations | 0.65 | 0.97 | (0.12) | 0.29 | | |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.27) | (0.29) | (0.26) | (0.13) | | |
| Net asset value at end of period | $10.84 | $10.46 | $9.78 | $10.16 | | |
| Total return | 6.33% | 10.15% | (1.17%) | 2.88% 3 | | |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Total expenses | 0.04% | 0.04% | 0.04% | 0.04% 4 | | |
| Net investment income (loss) | 2.32% | 2.86% | 2.52% | 2.32% 4 | | |
| Portfolio turnover rate5 | 81% | 91% | 97% | 39% 3,6 | | |
| Net assets, end of period (x 1,000,000) | $4,697 | $2,971 | $2,006 | $1,445 | | |
| |
1
Commencement of operations.
2
Calculated based on the average shares outstanding during the period.
3
Not annualized.
4
Annualized.
5
Includes to-be-announced (TBA) transactions (if any). See financial note 2.
6
Portfolio turnover rate excludes in-kind transactions.
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website at www.schwabfunds.com/schwabfunds_prospectus.
For fixed-rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued). For variable-rate obligations, the rate shown is the rate as of the report date based on each security’s rate reset date. The reference rate and spread used is shown parenthetically in the security description, if available; if not, the reference rate is described in a footnote. The maturity date shown for all the securities is the final legal maturity.
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Corporates 27.4% of net assets |
| |
| Financial Institutions 8.3% |
| Banking 5.7% |
| Ally Financial, Inc. |
| 4.13%, 02/13/22 | 250,000 | 259,486 |
| 3.05%, 06/05/23 (a) | 200,000 | 207,689 |
| 5.13%, 09/30/24 | 150,000 | 168,205 |
| 5.80%, 05/01/25 (a) | 150,000 | 173,396 |
| 8.00%, 11/01/31 | 450,000 | 613,167 |
| American Express Co. |
| 3.70%, 11/05/21 (a) | 150,000 | 155,557 |
| 2.75%, 05/20/22 (a) | 350,000 | 363,484 |
| 2.50%, 08/01/22 (a) | 250,000 | 259,616 |
| 2.65%, 12/02/22 | 200,000 | 210,047 |
| 3.40%, 02/27/23 (a) | 450,000 | 481,691 |
| 3.70%, 08/03/23 (a) | 500,000 | 544,925 |
| 3.40%, 02/22/24 (a) | 200,000 | 219,277 |
| 2.50%, 07/30/24 (a) | 350,000 | 375,006 |
| 3.00%, 10/30/24 (a) | 250,000 | 272,785 |
| 4.20%, 11/06/25 (a) | 150,000 | 175,808 |
| 3.13%, 05/20/26 (a) | 150,000 | 168,698 |
| 4.05%, 12/03/42 | 150,000 | 190,898 |
| American Express Credit Corp. |
| 2.70%, 03/03/22 (a) | 400,000 | 413,550 |
| 3.30%, 05/03/27 (a) | 250,000 | 286,408 |
| Australia & New Zealand Banking Group Ltd. |
| 2.30%, 06/01/21 | 250,000 | 253,729 |
| 2.55%, 11/23/21 | 250,000 | 256,894 |
| 2.63%, 05/19/22 | 250,000 | 259,936 |
| 2.05%, 11/21/22 | 250,000 | 259,443 |
| Banco Santander S.A. |
| 3.50%, 04/11/22 | 200,000 | 208,504 |
| 3.13%, 02/23/23 | 200,000 | 210,773 |
| 3.85%, 04/12/23 | 200,000 | 215,107 |
| 2.71%, 06/27/24 | 200,000 | 213,308 |
| 2.75%, 05/28/25 | 200,000 | 212,835 |
| 5.18%, 11/19/25 | 200,000 | 228,532 |
| 4.25%, 04/11/27 | 200,000 | 227,449 |
| 3.80%, 02/23/28 | 200,000 | 220,773 |
| 4.38%, 04/12/28 | 200,000 | 229,057 |
| 3.31%, 06/27/29 | 200,000 | 219,197 |
| 3.49%, 05/28/30 | 200,000 | 219,496 |
| Bancolombia S.A. |
| 3.00%, 01/29/25 (a) | 200,000 | 203,398 |
| BancorpSouth Bank |
| 4.13%, 11/20/29 (a)(b) | 50,000 | 49,978 |
| Bank of America Corp. |
| 5.70%, 01/24/22 | 474,000 | 508,744 |
| 2.50%, 10/21/22 (a) | 500,000 | 512,102 |
| 3.30%, 01/11/23 | 800,000 | 853,912 |
| 3.12%, 01/20/23 (a)(b) | 150,000 | 155,318 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 2.88%, 04/24/23 (a)(b) | 450,000 | 466,924 |
| 2.82%, 07/21/23 (a)(b) | 500,000 | 520,775 |
| 4.10%, 07/24/23 | 500,000 | 551,695 |
| 3.00%, 12/20/23 (a)(b) | 1,150,000 | 1,212,525 |
| 4.13%, 01/22/24 | 500,000 | 559,360 |
| 3.55%, 03/05/24 (a)(b) | 400,000 | 428,450 |
| 4.00%, 04/01/24 | 250,000 | 279,378 |
| 1.49%, 05/19/24 (a)(b) | 200,000 | 205,021 |
| 3.86%, 07/23/24 (a)(b) | 450,000 | 490,084 |
| 4.20%, 08/26/24 | 650,000 | 729,638 |
| 4.00%, 01/22/25 | 350,000 | 391,736 |
| 3.46%, 03/15/25 (a)(b) | 450,000 | 491,782 |
| 3.95%, 04/21/25 | 450,000 | 506,563 |
| 3.88%, 08/01/25 | 250,000 | 285,880 |
| 3.09%, 10/01/25 (a)(b) | 250,000 | 271,799 |
| 2.46%, 10/22/25 (a)(b) | 350,000 | 371,234 |
| 3.37%, 01/23/26 (a)(b) | 450,000 | 495,459 |
| 2.02%, 02/13/26 (a)(b) | 250,000 | 260,823 |
| 4.45%, 03/03/26 | 600,000 | 696,006 |
| 3.50%, 04/19/26 | 500,000 | 567,750 |
| 1.32%, 06/19/26 (a)(b) | 600,000 | 608,328 |
| 4.25%, 10/22/26 | 250,000 | 289,685 |
| 3.56%, 04/23/27 (a)(b) | 750,000 | 843,682 |
| 3.25%, 10/21/27 (a) | 200,000 | 222,993 |
| 4.18%, 11/25/27 (a) | 350,000 | 403,725 |
| 3.82%, 01/20/28 (a)(b) | 400,000 | 455,456 |
| 3.71%, 04/24/28 (a)(b) | 250,000 | 283,895 |
| 3.59%, 07/21/28 (a)(b) | 300,000 | 338,688 |
| 3.42%, 12/20/28 (a)(b) | 1,200,000 | 1,343,736 |
| 3.97%, 03/05/29 (a)(b) | 500,000 | 578,132 |
| 4.27%, 07/23/29 (a)(b) | 550,000 | 650,771 |
| 3.97%, 02/07/30 (a)(b) | 500,000 | 586,605 |
| 3.19%, 07/23/30 (a)(b) | 400,000 | 445,224 |
| 2.88%, 10/22/30 (a)(b) | 350,000 | 381,496 |
| 2.50%, 02/13/31 (a)(b) | 800,000 | 844,448 |
| 2.59%, 04/29/31 (a)(b) | 500,000 | 533,640 |
| 1.90%, 07/23/31 (a)(b) | 600,000 | 604,944 |
| 6.11%, 01/29/37 | 400,000 | 576,254 |
| 4.24%, 04/24/38 (a)(b) | 250,000 | 306,469 |
| 7.75%, 05/14/38 | 320,000 | 533,685 |
| 4.08%, 04/23/40 (a)(b) | 450,000 | 546,232 |
| 2.68%, 06/19/41 (a)(b) | 1,050,000 | 1,076,869 |
| 5.88%, 02/07/42 | 300,000 | 451,147 |
| 5.00%, 01/21/44 | 300,000 | 418,593 |
| 4.88%, 04/01/44 | 100,000 | 136,462 |
| 4.75%, 04/21/45 | 100,000 | 135,138 |
| 4.44%, 01/20/48 (a)(b) | 350,000 | 455,401 |
| 3.95%, 01/23/49 (a)(b) | 200,000 | 246,569 |
| 4.33%, 03/15/50 (a)(b) | 550,000 | 715,099 |
| 4.08%, 03/20/51 (a)(b) | 1,000,000 | 1,254,515 |
| Bank of America NA |
| 6.00%, 10/15/36 | 418,000 | 607,387 |
| Bank of Montreal |
| 1.90%, 08/27/21 | 300,000 | 305,022 |
| 2.90%, 03/26/22 | 400,000 | 416,234 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 2.35%, 09/11/22 | 250,000 | 260,413 |
| 2.55%, 11/06/22 (a) | 250,000 | 261,583 |
| 3.30%, 02/05/24 | 250,000 | 272,936 |
| 2.50%, 06/28/24 | 200,000 | 214,138 |
| 1.85%, 05/01/25 | 350,000 | 367,546 |
| 4.34%, 10/05/28 (a)(b) | 250,000 | 272,225 |
| 3.80%, 12/15/32 (a)(b) | 200,000 | 222,629 |
| BankUnited, Inc. |
| 4.88%, 11/17/25 (a) | 100,000 | 113,426 |
| Barclays Bank PLC |
| 1.70%, 05/12/22 (a) | 250,000 | 254,781 |
| Barclays PLC |
| 3.20%, 08/10/21 | 200,000 | 205,148 |
| 3.68%, 01/10/23 (a) | 250,000 | 259,319 |
| 4.61%, 02/15/23 (a)(b) | 400,000 | 420,742 |
| 4.34%, 05/16/24 (a)(b) | 200,000 | 216,711 |
| 4.38%, 09/11/24 | 200,000 | 216,884 |
| 3.65%, 03/16/25 | 350,000 | 383,334 |
| 3.93%, 05/07/25 (a)(b) | 600,000 | 652,272 |
| 4.38%, 01/12/26 | 500,000 | 569,497 |
| 2.85%, 05/07/26 (a)(b) | 350,000 | 370,185 |
| 5.20%, 05/12/26 | 500,000 | 569,377 |
| 4.34%, 01/10/28 (a) | 200,000 | 225,770 |
| 4.84%, 05/09/28 (a) | 450,000 | 501,916 |
| 4.97%, 05/16/29 (a)(b) | 250,000 | 297,431 |
| 5.09%, 06/20/30 (a)(b) | 300,000 | 347,664 |
| 2.65%, 06/24/31 (a)(b) | 300,000 | 306,024 |
| 5.25%, 08/17/45 | 200,000 | 278,098 |
| 4.95%, 01/10/47 | 400,000 | 541,036 |
| BBVA USA |
| 2.88%, 06/29/22 (a) | 250,000 | 257,279 |
| 3.88%, 04/10/25 (a) | 250,000 | 269,814 |
| BNP Paribas S.A. |
| 3.25%, 03/03/23 | 95,000 | 101,769 |
| 4.25%, 10/15/24 | 200,000 | 223,362 |
| BPCE S.A. |
| 2.75%, 12/02/21 | 250,000 | 257,586 |
| 4.00%, 04/15/24 | 250,000 | 279,316 |
| Canadian Imperial Bank of Commerce |
| 0.95%, 06/23/23 | 250,000 | 252,934 |
| 2.61%, 07/22/23 (a)(b) | 150,000 | 155,949 |
| 3.50%, 09/13/23 | 350,000 | 382,471 |
| 3.10%, 04/02/24 | 200,000 | 216,654 |
| 2.25%, 01/28/25 | 200,000 | 212,429 |
| Capital One Bank USA NA |
| 3.38%, 02/15/23 | 250,000 | 264,911 |
| 2.28%, 01/28/26 (a)(b) | 350,000 | 364,088 |
| Capital One Financial Corp. |
| 3.20%, 01/30/23 (a) | 250,000 | 264,471 |
| 2.60%, 05/11/23 (a) | 250,000 | 262,291 |
| 3.50%, 06/15/23 | 250,000 | 268,384 |
| 3.90%, 01/29/24 (a) | 150,000 | 164,234 |
| 3.75%, 04/24/24 (a) | 400,000 | 438,766 |
| 3.30%, 10/30/24 (a) | 500,000 | 544,827 |
| 3.20%, 02/05/25 (a) | 250,000 | 272,841 |
| 4.20%, 10/29/25 (a) | 250,000 | 280,661 |
| 3.75%, 07/28/26 (a) | 250,000 | 274,824 |
| 3.75%, 03/09/27 (a) | 400,000 | 446,194 |
| 3.65%, 05/11/27 (a) | 250,000 | 279,413 |
| 3.80%, 01/31/28 (a) | 200,000 | 223,652 |
| Citibank NA |
| 3.40%, 07/23/21 (a) | 250,000 | 256,403 |
| 3.65%, 01/23/24 (a) | 250,000 | 275,140 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Citigroup, Inc. |
| 2.35%, 08/02/21 | 250,000 | 254,781 |
| 2.90%, 12/08/21 (a) | 350,000 | 360,481 |
| 4.50%, 01/14/22 | 500,000 | 529,002 |
| 2.75%, 04/25/22 (a) | 350,000 | 362,653 |
| 4.05%, 07/30/22 | 150,000 | 159,841 |
| 2.70%, 10/27/22 (a) | 150,000 | 156,839 |
| 2.31%, 11/04/22 (a)(b) | 350,000 | 357,005 |
| 3.14%, 01/24/23 (a)(b) | 400,000 | 413,858 |
| 3.50%, 05/15/23 | 350,000 | 375,238 |
| 2.88%, 07/24/23 (a)(b) | 500,000 | 521,105 |
| 3.88%, 10/25/23 | 150,000 | 165,467 |
| 1.68%, 05/15/24 (a)(b) | 250,000 | 256,710 |
| 4.04%, 06/01/24 (a)(b) | 150,000 | 163,292 |
| 3.75%, 06/16/24 | 100,000 | 111,162 |
| 4.00%, 08/05/24 | 150,000 | 166,317 |
| 3.88%, 03/26/25 | 150,000 | 166,980 |
| 3.35%, 04/24/25 (a)(b) | 450,000 | 489,613 |
| 3.30%, 04/27/25 | 300,000 | 333,477 |
| 4.40%, 06/10/25 | 650,000 | 741,793 |
| 5.50%, 09/13/25 | 524,000 | 626,735 |
| 3.70%, 01/12/26 | 500,000 | 567,095 |
| 4.60%, 03/09/26 | 345,000 | 401,759 |
| 3.11%, 04/08/26 (a)(b) | 800,000 | 871,056 |
| 3.40%, 05/01/26 | 250,000 | 280,719 |
| 3.20%, 10/21/26 (a) | 850,000 | 947,907 |
| 4.30%, 11/20/26 | 150,000 | 173,259 |
| 4.45%, 09/29/27 | 580,000 | 674,615 |
| 3.89%, 01/10/28 (a)(b) | 450,000 | 513,493 |
| 3.67%, 07/24/28 (a)(b) | 350,000 | 396,758 |
| 4.13%, 07/25/28 | 450,000 | 517,651 |
| 3.52%, 10/27/28 (a)(b) | 700,000 | 783,601 |
| 4.08%, 04/23/29 (a)(b) | 250,000 | 290,936 |
| 3.98%, 03/20/30 (a)(b) | 550,000 | 639,435 |
| 2.98%, 11/05/30 (a)(b) | 300,000 | 326,192 |
| 2.67%, 01/29/31 (a)(b) | 350,000 | 373,254 |
| 4.41%, 03/31/31 (a)(b) | 800,000 | 973,948 |
| 2.57%, 06/03/31 (a)(b) | 800,000 | 848,204 |
| 6.63%, 06/15/32 | 200,000 | 281,502 |
| 5.88%, 02/22/33 | 100,000 | 132,069 |
| 6.00%, 10/31/33 | 150,000 | 204,204 |
| 6.13%, 08/25/36 | 100,000 | 136,753 |
| 3.88%, 01/24/39 (a)(b) | 200,000 | 238,629 |
| 8.13%, 07/15/39 | 270,000 | 477,132 |
| 5.32%, 03/26/41 (a)(b) | 450,000 | 634,723 |
| 5.88%, 01/30/42 | 130,000 | 193,972 |
| 6.68%, 09/13/43 | 200,000 | 312,655 |
| 5.30%, 05/06/44 | 200,000 | 270,002 |
| 4.65%, 07/30/45 | 180,000 | 239,080 |
| 4.75%, 05/18/46 | 330,000 | 424,179 |
| 4.28%, 04/24/48 (a)(b) | 150,000 | 195,027 |
| 4.65%, 07/23/48 (a) | 400,000 | 538,822 |
| Citizens Bank NA |
| 3.70%, 03/29/23 (a) | 500,000 | 537,400 |
| Citizens Financial Group, Inc. |
| 2.85%, 07/27/26 (a) | 150,000 | 165,763 |
| 3.25%, 04/30/30 (a) | 250,000 | 278,486 |
| Comerica, Inc. |
| 4.00%, 02/01/29 (a) | 250,000 | 289,621 |
| Cooperatieve Rabobank UA |
| 3.88%, 02/08/22 | 300,000 | 315,351 |
| 3.95%, 11/09/22 | 250,000 | 267,100 |
| 2.75%, 01/10/23 | 250,000 | 263,851 |
| 4.63%, 12/01/23 | 491,000 | 547,578 |
| 3.38%, 05/21/25 | 250,000 | 280,616 |
| 4.38%, 08/04/25 | 241,000 | 275,018 |
| 3.75%, 07/21/26 | 550,000 | 621,054 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 5.25%, 05/24/41 | 300,000 | 444,136 |
| 5.75%, 12/01/43 | 250,000 | 368,086 |
| 5.25%, 08/04/45 | 250,000 | 351,940 |
| Credit Suisse AG |
| 2.10%, 11/12/21 | 500,000 | 510,515 |
| 2.80%, 04/08/22 | 250,000 | 259,596 |
| 1.00%, 05/05/23 | 250,000 | 254,060 |
| 3.63%, 09/09/24 | 550,000 | 613,354 |
| 2.95%, 04/09/25 | 400,000 | 439,632 |
| Credit Suisse Group Funding Guernsey Ltd. |
| 3.80%, 09/15/22 | 500,000 | 531,192 |
| 3.80%, 06/09/23 | 500,000 | 540,615 |
| 3.75%, 03/26/25 | 500,000 | 554,792 |
| 4.55%, 04/17/26 | 500,000 | 586,342 |
| 4.88%, 05/15/45 | 500,000 | 683,745 |
| Credit Suisse USA, Inc. |
| 7.13%, 07/15/32 | 150,000 | 232,635 |
| Deutsche Bank AG |
| 4.25%, 10/14/21 | 550,000 | 568,958 |
| 3.30%, 11/16/22 | 250,000 | 259,404 |
| 3.95%, 02/27/23 | 400,000 | 422,946 |
| 3.70%, 05/30/24 | 300,000 | 320,842 |
| 3.96%, 11/26/25 (a)(b) | 350,000 | 376,603 |
| 4.10%, 01/13/26 | 250,000 | 268,020 |
| Discover Bank |
| 3.35%, 02/06/23 (a) | 500,000 | 530,892 |
| 4.65%, 09/13/28 (a) | 500,000 | 587,975 |
| Discover Financial Services |
| 3.85%, 11/21/22 | 400,000 | 427,086 |
| 3.75%, 03/04/25 (a) | 150,000 | 163,945 |
| 4.10%, 02/09/27 (a) | 150,000 | 167,582 |
| Fifth Third Bancorp |
| 3.50%, 03/15/22 (a) | 150,000 | 156,623 |
| 2.60%, 06/15/22 (a) | 150,000 | 155,473 |
| 1.63%, 05/05/23 (a) | 175,000 | 179,744 |
| 3.65%, 01/25/24 (a) | 250,000 | 273,790 |
| 2.55%, 05/05/27 (a) | 200,000 | 217,170 |
| 8.25%, 03/01/38 | 150,000 | 249,065 |
| Fifth Third Bank |
| 3.35%, 07/26/21 (a) | 200,000 | 205,106 |
| 2.88%, 10/01/21 (a) | 500,000 | 512,360 |
| 3.85%, 03/15/26 (a) | 200,000 | 229,532 |
| 2.25%, 02/01/27 (a) | 250,000 | 268,236 |
| First Horizon National Corp. |
| 3.55%, 05/26/23 (a) | 200,000 | 210,659 |
| 4.00%, 05/26/25 (a) | 150,000 | 163,391 |
| First Republic Bank |
| 4.63%, 02/13/47 (a) | 250,000 | 311,286 |
| Goldman Sachs Capital l |
| 6.35%, 02/15/34 | 150,000 | 210,958 |
| HSBC Bank USA NA |
| 5.88%, 11/01/34 | 250,000 | 344,289 |
| 7.00%, 01/15/39 | 250,000 | 381,894 |
| HSBC Holdings PLC |
| 2.65%, 01/05/22 | 450,000 | 462,910 |
| 4.00%, 03/30/22 | 330,000 | 347,868 |
| 3.26%, 03/13/23 (a)(b) | 600,000 | 623,334 |
| 3.60%, 05/25/23 | 200,000 | 215,272 |
| 3.03%, 11/22/23 (a)(b) | 200,000 | 209,755 |
| 4.25%, 03/14/24 | 500,000 | 547,667 |
| 3.95%, 05/18/24 (a)(b) | 400,000 | 432,170 |
| 3.80%, 03/11/25 (a)(b) | 450,000 | 488,036 |
| 4.25%, 08/18/25 | 200,000 | 221,743 |
| 2.63%, 11/07/25 (a)(b) | 400,000 | 420,408 |
| 4.30%, 03/08/26 | 400,000 | 459,358 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 1.65%, 04/18/26 (a)(b) | 625,000 | 630,431 |
| 3.90%, 05/25/26 | 650,000 | 734,019 |
| 2.10%, 06/04/26 (a)(b) | 300,000 | 307,941 |
| 4.29%, 09/12/26 (a)(b) | 400,000 | 451,464 |
| 4.38%, 11/23/26 | 309,000 | 350,446 |
| 4.04%, 03/13/28 (a)(b) | 400,000 | 450,622 |
| 4.58%, 06/19/29 (a)(b) | 600,000 | 702,108 |
| 4.95%, 03/31/30 | 400,000 | 493,658 |
| 3.97%, 05/22/30 (a)(b) | 450,000 | 511,506 |
| 2.85%, 06/04/31 (a)(b) | 250,000 | 263,358 |
| 2.36%, 08/18/31 (a)(b) | 450,000 | 456,291 |
| 7.63%, 05/17/32 | 200,000 | 285,271 |
| 6.50%, 05/02/36 | 200,000 | 278,091 |
| 6.50%, 09/15/37 | 505,000 | 705,465 |
| 6.80%, 06/01/38 | 400,000 | 577,198 |
| 6.10%, 01/14/42 | 200,000 | 294,925 |
| 5.25%, 03/14/44 | 200,000 | 261,801 |
| HSBC USA, Inc. |
| 3.50%, 06/23/24 | 150,000 | 164,657 |
| Huntington Bancshares, Inc. |
| 2.30%, 01/14/22 (a) | 150,000 | 153,716 |
| 2.63%, 08/06/24 (a) | 200,000 | 214,483 |
| 2.55%, 02/04/30 (a) | 200,000 | 210,339 |
| ING Groep N.V. |
| 3.15%, 03/29/22 | 250,000 | 260,451 |
| 4.10%, 10/02/23 | 300,000 | 330,702 |
| 3.55%, 04/09/24 | 200,000 | 219,284 |
| 3.95%, 03/29/27 | 200,000 | 231,732 |
| 4.55%, 10/02/28 | 300,000 | 367,608 |
| 4.05%, 04/09/29 | 200,000 | 237,369 |
| JPMorgan Chase & Co. |
| 2.40%, 06/07/21 (a) | 309,000 | 313,460 |
| 4.35%, 08/15/21 | 900,000 | 935,136 |
| 4.50%, 01/24/22 | 300,000 | 317,217 |
| 3.51%, 06/18/22 (a)(b) | 200,000 | 205,059 |
| 3.25%, 09/23/22 | 380,000 | 402,386 |
| 2.97%, 01/15/23 (a) | 750,000 | 776,081 |
| 3.20%, 01/25/23 | 563,000 | 599,981 |
| 3.21%, 04/01/23 (a)(b) | 200,000 | 208,633 |
| 2.78%, 04/25/23 (a)(b) | 500,000 | 518,802 |
| 3.38%, 05/01/23 | 250,000 | 267,869 |
| 2.70%, 05/18/23 (a) | 300,000 | 317,105 |
| 3.88%, 02/01/24 | 250,000 | 277,160 |
| 3.56%, 04/23/24 (a)(b) | 250,000 | 268,839 |
| 3.63%, 05/13/24 | 250,000 | 276,708 |
| 1.51%, 06/01/24 (a)(b) | 200,000 | 205,105 |
| 3.80%, 07/23/24 (a)(b) | 450,000 | 489,411 |
| 3.88%, 09/10/24 | 500,000 | 557,575 |
| 4.02%, 12/05/24 (a)(b) | 450,000 | 497,068 |
| 3.13%, 01/23/25 (a) | 745,000 | 814,024 |
| 3.22%, 03/01/25 (a)(b) | 250,000 | 270,345 |
| 3.90%, 07/15/25 (a) | 450,000 | 512,131 |
| 2.30%, 10/15/25 (a)(b) | 250,000 | 264,064 |
| 2.01%, 03/13/26 (a)(b) | 300,000 | 313,806 |
| 3.30%, 04/01/26 (a) | 635,000 | 713,045 |
| 2.08%, 04/22/26 (a)(b) | 700,000 | 736,071 |
| 3.20%, 06/15/26 (a) | 250,000 | 280,060 |
| 2.95%, 10/01/26 (a) | 550,000 | 609,757 |
| 4.13%, 12/15/26 | 450,000 | 527,193 |
| 3.96%, 01/29/27 (a)(b) | 500,000 | 574,557 |
| 8.00%, 04/29/27 | 150,000 | 208,277 |
| 4.25%, 10/01/27 | 250,000 | 292,528 |
| 3.63%, 12/01/27 (a) | 150,000 | 168,890 |
| 3.78%, 02/01/28 (a)(b) | 500,000 | 572,410 |
| 3.54%, 05/01/28 (a)(b) | 450,000 | 508,624 |
| 2.18%, 06/01/28 (a)(b) | 300,000 | 314,285 |
| 3.51%, 01/23/29 (a)(b) | 350,000 | 396,170 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 4.01%, 04/23/29 (a)(b) | 300,000 | 350,088 |
| 4.20%, 07/23/29 (a)(b) | 650,000 | 770,081 |
| 4.45%, 12/05/29 (a)(b) | 450,000 | 544,250 |
| 3.70%, 05/06/30 (a)(b) | 450,000 | 521,401 |
| 8.75%, 09/01/30 | 50,000 | 74,469 |
| 2.74%, 10/15/30 (a)(b) | 550,000 | 597,297 |
| 4.49%, 03/24/31 (a)(b) | 450,000 | 554,611 |
| 2.52%, 04/22/31 (a)(b) | 750,000 | 803,895 |
| 2.96%, 05/13/31 (a)(b) | 700,000 | 754,029 |
| 6.40%, 05/15/38 | 400,000 | 622,210 |
| 3.88%, 07/24/38 (a)(b) | 400,000 | 481,628 |
| 5.50%, 10/15/40 | 230,000 | 334,054 |
| 3.11%, 04/22/41 (a)(b) | 250,000 | 276,398 |
| 5.60%, 07/15/41 | 350,000 | 520,224 |
| 5.40%, 01/06/42 | 300,000 | 440,529 |
| 5.63%, 08/16/43 | 250,000 | 367,154 |
| 4.85%, 02/01/44 | 100,000 | 137,781 |
| 4.95%, 06/01/45 | 250,000 | 344,505 |
| 4.26%, 02/22/48 (a)(b) | 350,000 | 448,416 |
| 4.03%, 07/24/48 (a)(b) | 250,000 | 311,566 |
| 3.96%, 11/15/48 (a)(b) | 800,000 | 982,140 |
| 3.90%, 01/23/49 (a)(b) | 400,000 | 491,244 |
| 3.11%, 04/22/51 (a)(b) | 400,000 | 436,406 |
| KeyBank NA |
| 2.50%, 11/22/21 | 250,000 | 256,586 |
| 2.30%, 09/14/22 | 250,000 | 259,245 |
| 3.38%, 03/07/23 | 250,000 | 267,856 |
| 1.25%, 03/10/23 | 250,000 | 254,855 |
| 3.40%, 05/20/26 | 250,000 | 281,404 |
| KeyCorp |
| 4.15%, 10/29/25 | 150,000 | 173,966 |
| 4.10%, 04/30/28 | 150,000 | 176,850 |
| 2.55%, 10/01/29 | 150,000 | 160,298 |
| Lloyds Banking Group PLC |
| 3.10%, 07/06/21 | 200,000 | 204,643 |
| 3.00%, 01/11/22 | 400,000 | 413,482 |
| 2.86%, 03/17/23 (a)(b) | 400,000 | 413,272 |
| 1.33%, 06/15/23 (a)(b) | 200,000 | 202,005 |
| 4.05%, 08/16/23 | 200,000 | 218,793 |
| 2.91%, 11/07/23 (a)(b) | 450,000 | 470,963 |
| 3.90%, 03/12/24 | 250,000 | 275,149 |
| 4.50%, 11/04/24 | 200,000 | 221,092 |
| 4.45%, 05/08/25 | 200,000 | 229,475 |
| 4.58%, 12/10/25 | 200,000 | 225,887 |
| 2.44%, 02/05/26 (a)(b) | 200,000 | 210,347 |
| 4.65%, 03/24/26 | 524,000 | 596,561 |
| 3.75%, 01/11/27 | 200,000 | 225,090 |
| 4.38%, 03/22/28 | 300,000 | 355,500 |
| 4.55%, 08/16/28 | 200,000 | 239,942 |
| 3.57%, 11/07/28 (a)(b) | 200,000 | 223,599 |
| 5.30%, 12/01/45 | 200,000 | 278,620 |
| 4.34%, 01/09/48 | 300,000 | 376,681 |
| Manufacturers & Traders Trust Co. |
| 2.50%, 05/18/22 (a) | 250,000 | 258,718 |
| 2.90%, 02/06/25 (a) | 250,000 | 275,169 |
| Mitsubishi UFJ Financial Group, Inc. |
| 3.54%, 07/26/21 | 200,000 | 205,744 |
| 2.19%, 09/13/21 | 614,000 | 625,334 |
| 3.22%, 03/07/22 | 250,000 | 260,456 |
| 2.67%, 07/25/22 | 550,000 | 572,099 |
| 3.46%, 03/02/23 | 250,000 | 267,361 |
| 3.76%, 07/26/23 | 250,000 | 272,474 |
| 3.41%, 03/07/24 | 550,000 | 598,898 |
| 2.80%, 07/18/24 | 200,000 | 214,662 |
| 2.19%, 02/25/25 | 650,000 | 684,287 |
| 1.41%, 07/17/25 | 350,000 | 357,095 |
| 3.85%, 03/01/26 | 200,000 | 229,651 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.68%, 02/22/27 | 200,000 | 227,157 |
| 3.29%, 07/25/27 | 250,000 | 278,393 |
| 3.96%, 03/02/28 | 250,000 | 291,521 |
| 4.05%, 09/11/28 | 250,000 | 294,859 |
| 3.74%, 03/07/29 | 300,000 | 346,700 |
| 3.20%, 07/18/29 | 200,000 | 222,329 |
| 2.56%, 02/25/30 | 200,000 | 213,172 |
| 2.05%, 07/17/30 | 450,000 | 458,521 |
| 4.15%, 03/07/39 | 300,000 | 368,679 |
| 3.75%, 07/18/39 | 200,000 | 234,214 |
| Mizuho Financial Group, Inc. |
| 2.27%, 09/13/21 | 200,000 | 203,858 |
| 2.95%, 02/28/22 | 500,000 | 518,532 |
| 2.60%, 09/11/22 | 250,000 | 260,440 |
| 2.72%, 07/16/23 (a)(b) | 200,000 | 207,567 |
| 1.24%, 07/10/24 (a)(b) | 250,000 | 253,158 |
| 2.56%, 09/13/25 (a)(b) | 200,000 | 211,070 |
| 2.23%, 05/25/26 (a)(b) | 200,000 | 209,088 |
| 3.66%, 02/28/27 | 200,000 | 225,096 |
| 3.17%, 09/11/27 | 300,000 | 330,033 |
| 4.02%, 03/05/28 | 200,000 | 230,859 |
| 3.15%, 07/16/30 (a)(b) | 200,000 | 220,354 |
| 2.87%, 09/13/30 (a)(b) | 200,000 | 215,688 |
| 2.20%, 07/10/31 (a)(b) | 250,000 | 255,966 |
| Morgan Stanley |
| 5.50%, 07/28/21 | 400,000 | 418,554 |
| 2.63%, 11/17/21 | 500,000 | 513,395 |
| 2.75%, 05/19/22 | 500,000 | 519,475 |
| 4.88%, 11/01/22 | 250,000 | 272,096 |
| 3.13%, 01/23/23 | 350,000 | 371,269 |
| 3.75%, 02/25/23 | 500,000 | 539,952 |
| 4.10%, 05/22/23 | 600,000 | 653,643 |
| 3.74%, 04/24/24 (a)(b) | 800,000 | 865,388 |
| 3.88%, 04/29/24 | 250,000 | 278,145 |
| 3.70%, 10/23/24 | 500,000 | 558,830 |
| 2.72%, 07/22/25 (a)(b) | 350,000 | 374,778 |
| 4.00%, 07/23/25 | 524,000 | 600,727 |
| 5.00%, 11/24/25 | 324,000 | 383,460 |
| 3.88%, 01/27/26 | 500,000 | 575,087 |
| 2.19%, 04/28/26 (a)(b) | 500,000 | 527,427 |
| 3.13%, 07/27/26 | 500,000 | 558,885 |
| 6.25%, 08/09/26 | 412,000 | 531,117 |
| 4.35%, 09/08/26 | 300,000 | 350,000 |
| 3.63%, 01/20/27 | 450,000 | 514,145 |
| 3.95%, 04/23/27 | 500,000 | 568,435 |
| 3.59%, 07/22/28 (a)(b) | 400,000 | 452,870 |
| 3.77%, 01/24/29 (a)(b) | 500,000 | 575,317 |
| 4.43%, 01/23/30 (a)(b) | 600,000 | 724,524 |
| 2.70%, 01/22/31 (a)(b) | 750,000 | 810,487 |
| 3.62%, 04/01/31 (a)(b) | 500,000 | 581,197 |
| 7.25%, 04/01/32 | 330,000 | 505,725 |
| 3.97%, 07/22/38 (a)(b) | 250,000 | 301,889 |
| 4.46%, 04/22/39 (a)(b) | 250,000 | 317,629 |
| 6.38%, 07/24/42 | 250,000 | 398,975 |
| 4.30%, 01/27/45 | 555,000 | 729,991 |
| 4.38%, 01/22/47 | 250,000 | 335,174 |
| 5.60%, 03/24/51 (a)(b) | 550,000 | 849,024 |
| MUFG Union Bank NA |
| 3.15%, 04/01/22 (a) | 250,000 | 260,793 |
| National Australia Bank Ltd. |
| 3.70%, 11/04/21 | 250,000 | 259,909 |
| 2.50%, 05/22/22 | 850,000 | 881,854 |
| 2.88%, 04/12/23 | 250,000 | 265,555 |
| 2.50%, 07/12/26 | 250,000 | 272,693 |
| National Bank of Canada |
| 2.10%, 02/01/23 | 250,000 | 259,026 |
| 0.90%, 08/15/23 (a)(b) | 250,000 | 251,553 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Natwest Group PLC |
| 6.13%, 12/15/22 | 400,000 | 439,030 |
| 3.50%, 05/15/23 (a)(b) | 800,000 | 834,952 |
| 6.10%, 06/10/23 | 150,000 | 166,659 |
| 3.88%, 09/12/23 | 400,000 | 434,116 |
| 6.00%, 12/19/23 | 550,000 | 620,166 |
| 2.36%, 05/22/24 (a)(b) | 200,000 | 207,175 |
| 5.13%, 05/28/24 | 350,000 | 387,074 |
| 4.52%, 06/25/24 (a)(b) | 200,000 | 218,257 |
| 4.27%, 03/22/25 (a)(b) | 200,000 | 219,841 |
| 3.07%, 05/22/28 (a)(b) | 400,000 | 428,892 |
| 4.89%, 05/18/29 (a)(b) | 500,000 | 596,175 |
| 3.75%, 11/01/29 (a)(b) | 200,000 | 210,903 |
| 5.08%, 01/27/30 (a)(b) | 200,000 | 243,795 |
| 4.45%, 05/08/30 (a)(b) | 200,000 | 235,063 |
| 3.03%, 11/28/35 (a)(b) | 250,000 | 249,100 |
| Northern Trust Corp. |
| 3.95%, 10/30/25 | 250,000 | 291,281 |
| 3.65%, 08/03/28 (a) | 100,000 | 117,710 |
| 3.15%, 05/03/29 (a) | 100,000 | 114,871 |
| 1.95%, 05/01/30 (a) | 200,000 | 209,541 |
| People's United Bank NA |
| 4.00%, 07/15/24 (a) | 250,000 | 271,778 |
| PNC Bank NA |
| 2.55%, 12/09/21 (a) | 405,000 | 415,955 |
| 2.63%, 02/17/22 (a) | 250,000 | 257,931 |
| 2.23%, 07/22/22 (a)(b) | 250,000 | 254,165 |
| 2.70%, 11/01/22 (a) | 250,000 | 261,675 |
| 2.03%, 12/09/22 (a)(b) | 250,000 | 255,205 |
| 2.95%, 02/23/25 (a) | 500,000 | 549,950 |
| 3.25%, 06/01/25 (a) | 250,000 | 279,333 |
| 3.25%, 01/22/28 (a) | 250,000 | 286,586 |
| 4.05%, 07/26/28 | 250,000 | 295,406 |
| Regions Financial Corp. |
| 2.75%, 08/14/22 (a) | 200,000 | 208,443 |
| 3.80%, 08/14/23 (a) | 250,000 | 272,894 |
| 2.25%, 05/18/25 (a) | 200,000 | 212,592 |
| 7.38%, 12/10/37 | 100,000 | 149,496 |
| Royal Bank of Canada |
| 2.75%, 02/01/22 | 500,000 | 517,632 |
| 2.80%, 04/29/22 | 200,000 | 208,118 |
| 1.95%, 01/17/23 | 200,000 | 207,340 |
| 3.70%, 10/05/23 | 350,000 | 384,421 |
| 2.55%, 07/16/24 | 150,000 | 161,334 |
| 2.25%, 11/01/24 | 200,000 | 213,054 |
| 1.15%, 06/10/25 | 350,000 | 356,694 |
| 4.65%, 01/27/26 | 150,000 | 177,834 |
| Santander Holdings USA, Inc. |
| 3.70%, 03/28/22 (a) | 830,000 | 862,822 |
| 3.40%, 01/18/23 (a) | 200,000 | 209,885 |
| 3.50%, 06/07/24 (a) | 200,000 | 215,213 |
| 3.45%, 06/02/25 (a) | 200,000 | 215,747 |
| 4.50%, 07/17/25 (a) | 100,000 | 111,193 |
| 3.24%, 10/05/26 (a)(c) | 150,000 | 160,256 |
| 4.40%, 07/13/27 (a) | 150,000 | 167,501 |
| Santander UK Group Holdings PLC |
| 2.88%, 08/05/21 | 200,000 | 204,552 |
| 3.37%, 01/05/24 (a)(b) | 300,000 | 315,347 |
| 4.80%, 11/15/24 (a)(b) | 200,000 | 222,525 |
| 1.53%, 08/21/26 (a)(b) | 400,000 | 400,606 |
| 3.82%, 11/03/28 (a)(b) | 250,000 | 280,249 |
| Santander UK PLC |
| 3.40%, 06/01/21 | 200,000 | 204,680 |
| 3.75%, 11/15/21 | 200,000 | 208,195 |
| 2.88%, 06/18/24 | 200,000 | 216,481 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Skandinaviska Enskilda Banken AB |
| 1.88%, 09/13/21 | 300,000 | 305,151 |
| State Street Corp. |
| 2.83%, 03/30/23 (a)(b)(c) | 150,000 | 155,595 |
| 2.65%, 05/15/23 (a)(b) | 150,000 | 156,059 |
| 3.10%, 05/15/23 | 200,000 | 214,317 |
| 3.78%, 12/03/24 (a)(b) | 200,000 | 220,579 |
| 3.30%, 12/16/24 | 300,000 | 335,310 |
| 2.35%, 11/01/25 (a)(b) | 200,000 | 213,487 |
| 2.65%, 05/19/26 | 250,000 | 277,296 |
| 4.14%, 12/03/29 (a)(b) | 250,000 | 304,448 |
| 2.40%, 01/24/30 | 100,000 | 108,813 |
| 3.15%, 03/30/31 (a)(b)(c) | 100,000 | 114,844 |
| Sumitomo Mitsui Banking Corp. |
| 3.95%, 01/10/24 | 250,000 | 275,595 |
| Sumitomo Mitsui Financial Group, Inc. |
| 2.06%, 07/14/21 | 200,000 | 203,026 |
| 2.44%, 10/19/21 | 200,000 | 204,499 |
| 2.78%, 07/12/22 | 400,000 | 416,824 |
| 2.78%, 10/18/22 | 250,000 | 261,925 |
| 3.10%, 01/17/23 | 750,000 | 796,155 |
| 3.75%, 07/19/23 | 200,000 | 217,915 |
| 2.70%, 07/16/24 | 450,000 | 481,583 |
| 2.45%, 09/27/24 | 200,000 | 212,876 |
| 2.35%, 01/15/25 | 200,000 | 212,308 |
| 1.47%, 07/08/25 | 200,000 | 204,831 |
| 3.78%, 03/09/26 | 600,000 | 687,753 |
| 2.63%, 07/14/26 | 200,000 | 217,257 |
| 3.01%, 10/19/26 | 250,000 | 276,753 |
| 3.45%, 01/11/27 | 200,000 | 224,930 |
| 3.36%, 07/12/27 | 200,000 | 223,642 |
| 3.94%, 07/19/28 | 250,000 | 291,069 |
| 4.31%, 10/16/28 | 250,000 | 298,056 |
| 3.04%, 07/16/29 | 600,000 | 658,875 |
| 3.20%, 09/17/29 | 100,000 | 108,870 |
| 2.72%, 09/27/29 | 200,000 | 215,100 |
| 2.75%, 01/15/30 | 200,000 | 215,768 |
| 2.13%, 07/08/30 | 300,000 | 307,892 |
| SVB Financial Group |
| 3.13%, 06/05/30 (a) | 200,000 | 224,254 |
| Svenska Handelsbanken AB |
| 3.90%, 11/20/23 | 250,000 | 277,323 |
| Synchrony Bank |
| 3.00%, 06/15/22 (a) | 250,000 | 258,515 |
| Synchrony Financial |
| 2.85%, 07/25/22 (a) | 200,000 | 207,160 |
| 4.38%, 03/19/24 (a) | 150,000 | 161,669 |
| 4.50%, 07/23/25 (a) | 250,000 | 273,201 |
| 3.95%, 12/01/27 (a) | 200,000 | 211,703 |
| 5.15%, 03/19/29 (a) | 150,000 | 172,032 |
| Synovus Financial Corp. |
| 3.13%, 11/01/22 (a) | 50,000 | 51,667 |
| The Bank of New York Mellon Corp. |
| 3.55%, 09/23/21 (a) | 200,000 | 206,440 |
| 1.95%, 08/23/22 | 200,000 | 206,661 |
| 1.85%, 01/27/23 (a) | 200,000 | 206,979 |
| 2.95%, 01/29/23 (a) | 250,000 | 264,910 |
| 3.50%, 04/28/23 | 200,000 | 217,296 |
| 2.66%, 05/16/23 (a)(b) | 300,000 | 311,303 |
| 2.20%, 08/16/23 (a) | 250,000 | 262,375 |
| 3.65%, 02/04/24 (a) | 500,000 | 552,165 |
| 3.25%, 09/11/24 (a) | 200,000 | 221,030 |
| 2.10%, 10/24/24 | 200,000 | 213,333 |
| 2.80%, 05/04/26 (a) | 200,000 | 223,431 |
| 2.45%, 08/17/26 (a) | 150,000 | 164,372 |
| 3.44%, 02/07/28 (a)(b) | 150,000 | 173,862 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.85%, 04/28/28 | 600,000 | 728,331 |
| 3.00%, 10/30/28 (a) | 150,000 | 168,327 |
| The Bank of Nova Scotia |
| 2.80%, 07/21/21 | 200,000 | 204,595 |
| 2.70%, 03/07/22 | 100,000 | 103,702 |
| 2.45%, 09/19/22 | 200,000 | 208,632 |
| 2.00%, 11/15/22 | 200,000 | 206,973 |
| 1.95%, 02/01/23 | 200,000 | 207,269 |
| 1.63%, 05/01/23 | 500,000 | 514,885 |
| 3.40%, 02/11/24 | 150,000 | 164,048 |
| 2.20%, 02/03/25 | 200,000 | 212,621 |
| 1.30%, 06/11/25 | 400,000 | 409,538 |
| 4.50%, 12/16/25 | 150,000 | 174,488 |
| 2.70%, 08/03/26 | 200,000 | 221,558 |
| The Goldman Sachs Group, Inc. |
| 5.25%, 07/27/21 (d) | 600,000 | 626,664 |
| 2.35%, 11/15/21 (a) | 400,000 | 401,592 |
| 5.75%, 01/24/22 | 912,000 | 979,132 |
| 3.00%, 04/26/22 (a) | 500,000 | 508,155 |
| 2.88%, 10/31/22 (a)(b) | 500,000 | 513,110 |
| 3.63%, 01/22/23 | 400,000 | 429,512 |
| 3.20%, 02/23/23 (a) | 150,000 | 159,703 |
| 2.91%, 06/05/23 (a)(b) | 550,000 | 571,604 |
| 2.91%, 07/24/23 (a)(b) | 250,000 | 260,799 |
| 3.63%, 02/20/24 (a) | 150,000 | 163,896 |
| 4.00%, 03/03/24 | 500,000 | 554,005 |
| 3.85%, 07/08/24 (a) | 724,000 | 800,621 |
| 3.50%, 01/23/25 (a) | 450,000 | 495,461 |
| 3.50%, 04/01/25 (a) | 600,000 | 665,550 |
| 3.75%, 05/22/25 (a) | 550,000 | 616,619 |
| 3.27%, 09/29/25 (a)(b) | 450,000 | 490,408 |
| 4.25%, 10/21/25 | 300,000 | 341,349 |
| 3.75%, 02/25/26 (a) | 250,000 | 283,473 |
| 3.50%, 11/16/26 (a) | 550,000 | 615,095 |
| 5.95%, 01/15/27 | 157,000 | 194,595 |
| 3.85%, 01/26/27 (a) | 600,000 | 684,315 |
| 3.69%, 06/05/28 (a)(b) | 650,000 | 737,334 |
| 3.81%, 04/23/29 (a)(b) | 450,000 | 515,353 |
| 4.22%, 05/01/29 (a)(b) | 500,000 | 588,277 |
| 2.60%, 02/07/30 (a) | 350,000 | 373,242 |
| 3.80%, 03/15/30 (a) | 400,000 | 466,606 |
| 6.13%, 02/15/33 | 150,000 | 212,948 |
| 6.45%, 05/01/36 | 100,000 | 139,642 |
| 6.75%, 10/01/37 | 1,000,000 | 1,465,510 |
| 4.02%, 10/31/38 (a)(b) | 650,000 | 768,722 |
| 4.41%, 04/23/39 (a)(b) | 300,000 | 370,632 |
| 6.25%, 02/01/41 | 500,000 | 758,420 |
| 4.80%, 07/08/44 (a) | 350,000 | 463,872 |
| 5.15%, 05/22/45 | 400,000 | 533,586 |
| 4.75%, 10/21/45 (a) | 300,000 | 401,773 |
| The Huntington National Bank |
| 2.50%, 08/07/22 (a) | 250,000 | 259,758 |
| 3.55%, 10/06/23 (a) | 250,000 | 272,945 |
| The PNC Financial Services Group, Inc. |
| 3.30%, 03/08/22 (a) | 150,000 | 156,368 |
| 3.90%, 04/29/24 (a) | 500,000 | 555,482 |
| 2.20%, 11/01/24 (a) | 250,000 | 266,421 |
| 2.60%, 07/23/26 (a) | 100,000 | 110,082 |
| 3.45%, 04/23/29 (a) | 350,000 | 405,468 |
| 2.55%, 01/22/30 (a) | 300,000 | 327,048 |
| The Toronto-Dominion Bank |
| 3.25%, 06/11/21 | 150,000 | 153,563 |
| 1.90%, 12/01/22 | 500,000 | 517,257 |
| 0.75%, 06/12/23 | 400,000 | 404,674 |
| 3.50%, 07/19/23 | 250,000 | 273,023 |
| 3.25%, 03/11/24 | 200,000 | 218,654 |
| 2.65%, 06/12/24 | 200,000 | 215,355 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 1.15%, 06/12/25 | 250,000 | 255,813 |
| 3.63%, 09/15/31 (a)(b) | 300,000 | 342,020 |
| Truist Bank |
| 2.45%, 08/01/22 (a) | 250,000 | 259,601 |
| 3.69%, 08/02/24 (a)(b) | 500,000 | 544,475 |
| 2.15%, 12/06/24 (a) | 250,000 | 265,574 |
| 1.50%, 03/10/25 (a) | 300,000 | 310,925 |
| 3.63%, 09/16/25 (a) | 491,000 | 557,508 |
| 4.05%, 11/03/25 (a) | 400,000 | 466,436 |
| 2.25%, 03/11/30 (a) | 250,000 | 261,158 |
| Truist Financial Corp. |
| 2.70%, 01/27/22 (a) | 200,000 | 206,215 |
| 3.95%, 03/22/22 (a) | 274,000 | 287,777 |
| 2.75%, 04/01/22 (a) | 250,000 | 258,960 |
| 3.05%, 06/20/22 (a) | 250,000 | 261,279 |
| 2.20%, 03/16/23 (a) | 250,000 | 261,103 |
| 3.75%, 12/06/23 (a) | 100,000 | 110,237 |
| 2.50%, 08/01/24 (a) | 300,000 | 320,771 |
| 2.85%, 10/26/24 (a) | 300,000 | 328,149 |
| 4.00%, 05/01/25 (a) | 200,000 | 228,630 |
| 1.20%, 08/05/25 (a) | 200,000 | 204,694 |
| 1.13%, 08/03/27 (a) | 500,000 | 500,015 |
| 3.88%, 03/19/29 (a) | 100,000 | 116,141 |
| 1.95%, 06/05/30 (a) | 200,000 | 207,193 |
| US Bancorp |
| 2.63%, 01/24/22 (a) | 500,000 | 515,255 |
| 2.95%, 07/15/22 (a) | 200,000 | 209,439 |
| 3.70%, 01/30/24 (a) | 500,000 | 553,290 |
| 3.38%, 02/05/24 (a) | 300,000 | 328,332 |
| 2.40%, 07/30/24 (a) | 200,000 | 214,011 |
| 1.45%, 05/12/25 (a) | 300,000 | 311,685 |
| 2.38%, 07/22/26 (a) | 100,000 | 109,644 |
| 3.15%, 04/27/27 (a) | 600,000 | 681,633 |
| 3.00%, 07/30/29 (a) | 150,000 | 166,640 |
| 1.38%, 07/22/30 (a) | 400,000 | 397,772 |
| US Bank NA |
| 2.65%, 05/23/22 (a) | 250,000 | 259,874 |
| 2.85%, 01/23/23 (a) | 250,000 | 264,685 |
| 2.80%, 01/27/25 (a) | 250,000 | 274,050 |
| US Bank NA/Cincinnati OH |
| 1.80%, 01/21/22 (a) | 250,000 | 255,598 |
| 3.40%, 07/24/23 (a) | 250,000 | 271,810 |
| 2.05%, 01/21/25 (a) | 250,000 | 265,244 |
| Wachovia Corp. |
| 5.50%, 08/01/35 | 330,000 | 439,750 |
| Webster Financial Corp. |
| 4.10%, 03/25/29 (a) | 50,000 | 54,404 |
| Wells Fargo & Co. |
| 2.10%, 07/26/21 | 724,000 | 735,573 |
| 3.50%, 03/08/22 | 450,000 | 470,720 |
| 2.63%, 07/22/22 | 500,000 | 520,057 |
| 3.07%, 01/24/23 (a) | 700,000 | 724,563 |
| 3.45%, 02/13/23 | 443,000 | 471,150 |
| 4.13%, 08/15/23 | 250,000 | 273,701 |
| 4.48%, 01/16/24 | 150,000 | 167,375 |
| 3.75%, 01/24/24 (a) | 850,000 | 929,466 |
| 1.65%, 06/02/24 (a)(b) | 500,000 | 511,547 |
| 3.30%, 09/09/24 | 424,000 | 465,603 |
| 3.00%, 02/19/25 | 400,000 | 434,696 |
| 3.55%, 09/29/25 | 400,000 | 448,402 |
| 2.41%, 10/30/25 (a)(b) | 400,000 | 421,720 |
| 2.16%, 02/11/26 (a)(b) | 450,000 | 469,825 |
| 3.00%, 04/22/26 | 850,000 | 932,667 |
| 2.19%, 04/30/26 (a)(b) | 500,000 | 523,660 |
| 4.10%, 06/03/26 | 550,000 | 623,131 |
| 3.00%, 10/23/26 | 600,000 | 662,397 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.20%, 06/17/27 (a)(b) | 400,000 | 438,172 |
| 4.30%, 07/22/27 | 480,000 | 553,255 |
| 3.58%, 05/22/28 (a)(b) | 500,000 | 561,352 |
| 2.39%, 06/02/28 (a)(b) | 550,000 | 575,347 |
| 4.15%, 01/24/29 (a) | 300,000 | 354,417 |
| 2.88%, 10/30/30 (a)(b) | 500,000 | 538,845 |
| 2.57%, 02/11/31 (a)(b) | 450,000 | 475,069 |
| 4.48%, 04/04/31 (a)(b) | 600,000 | 733,359 |
| 5.38%, 02/07/35 | 200,000 | 274,361 |
| 3.07%, 04/30/41 (a)(b) | 1,000,000 | 1,061,790 |
| 5.38%, 11/02/43 | 400,000 | 536,112 |
| 5.61%, 01/15/44 | 600,000 | 819,546 |
| 4.65%, 11/04/44 | 250,000 | 309,410 |
| 3.90%, 05/01/45 | 580,000 | 685,067 |
| 4.90%, 11/17/45 | 350,000 | 447,470 |
| 4.40%, 06/14/46 | 450,000 | 539,624 |
| 4.75%, 12/07/46 | 350,000 | 443,296 |
| 5.01%, 04/04/51 (a)(b) | 850,000 | 1,170,956 |
| Wells Fargo Bank NA |
| 3.63%, 10/22/21 (a) | 300,000 | 310,410 |
| 2.08%, 09/09/22 (a)(b) | 400,000 | 406,326 |
| 3.55%, 08/14/23 (a) | 500,000 | 543,485 |
| 5.85%, 02/01/37 | 250,000 | 344,600 |
| 6.60%, 01/15/38 | 250,000 | 371,834 |
| Westpac Banking Corp. |
| 2.00%, 08/19/21 | 300,000 | 305,072 |
| 2.80%, 01/11/22 | 200,000 | 206,810 |
| 2.50%, 06/28/22 | 250,000 | 259,911 |
| 2.75%, 01/11/23 | 250,000 | 263,581 |
| 3.65%, 05/15/23 | 500,000 | 542,670 |
| 3.30%, 02/26/24 | 200,000 | 218,050 |
| 2.35%, 02/19/25 | 250,000 | 267,606 |
| 2.85%, 05/13/26 | 200,000 | 222,325 |
| 3.35%, 03/08/27 | 150,000 | 172,611 |
| 3.40%, 01/25/28 | 250,000 | 291,170 |
| 2.65%, 01/16/30 | 100,000 | 111,282 |
| 2.89%, 02/04/30 (a)(b) | 200,000 | 207,209 |
| 4.32%, 11/23/31 (a)(b) | 250,000 | 282,913 |
| 4.11%, 07/24/34 (a)(b) | 250,000 | 282,715 |
| 4.42%, 07/24/39 | 150,000 | 185,087 |
| | | 267,383,209 |
| Brokerage/Asset Managers/Exchanges 0.3% |
| Affiliated Managers Group, Inc. |
| 4.25%, 02/15/24 | 100,000 | 110,363 |
| 3.30%, 06/15/30 (a) | 150,000 | 161,169 |
| Ameriprise Financial, Inc. |
| 3.00%, 03/22/22 | 150,000 | 155,956 |
| 4.00%, 10/15/23 | 250,000 | 277,890 |
| 3.00%, 04/02/25 (a) | 100,000 | 109,695 |
| BGC Partners, Inc. |
| 5.38%, 07/24/23 | 100,000 | 105,265 |
| 4.38%, 12/15/25 (a)(c) | 350,000 | 353,971 |
| BlackRock, Inc. |
| 3.38%, 06/01/22 | 150,000 | 157,857 |
| 3.50%, 03/18/24 | 424,000 | 468,851 |
| 3.25%, 04/30/29 (a) | 150,000 | 175,656 |
| 2.40%, 04/30/30 (a) | 200,000 | 218,948 |
| 1.90%, 01/28/31 (a) | 250,000 | 261,381 |
| Brookfield Asset Management, Inc. |
| 4.00%, 01/15/25 (a) | 150,000 | 167,886 |
| Brookfield Finance, Inc. |
| 4.00%, 04/01/24 (a) | 100,000 | 110,497 |
| 4.25%, 06/02/26 (a) | 100,000 | 114,082 |
| 3.90%, 01/25/28 (a) | 150,000 | 170,382 |
| 4.85%, 03/29/29 (a) | 400,000 | 477,652 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 4.35%, 04/15/30 (a) | 150,000 | 174,785 |
| 4.70%, 09/20/47 (a) | 100,000 | 118,490 |
| 3.45%, 04/15/50 (a) | 100,000 | 99,713 |
| Cboe Global Markets, Inc. |
| 3.65%, 01/12/27 (a) | 100,000 | 114,772 |
| Charles Schwab Corp. |
| 2.65%, 01/25/23 (a)(e) | 150,000 | 158,122 |
| 4.20%, 03/24/25 (a)(e) | 150,000 | 174,274 |
| 3.85%, 05/21/25 (a)(e) | 150,000 | 171,406 |
| 3.20%, 01/25/28 (a)(e) | 150,000 | 171,118 |
| 4.00%, 02/01/29 (a)(e) | 150,000 | 180,172 |
| 3.25%, 05/22/29 (a)(e) | 200,000 | 231,464 |
| 4.63%, 03/22/30 (a)(e) | 100,000 | 127,599 |
| CME Group, Inc. |
| 3.00%, 03/15/25 (a) | 400,000 | 439,132 |
| 5.30%, 09/15/43 (a) | 200,000 | 293,308 |
| E*TRADE Financial Corp. |
| 2.95%, 08/24/22 (a) | 100,000 | 104,538 |
| 3.80%, 08/24/27 (a) | 150,000 | 168,251 |
| Eaton Vance Corp. |
| 3.63%, 06/15/23 | 100,000 | 107,144 |
| 3.50%, 04/06/27 (a) | 200,000 | 222,006 |
| Franklin Resources, Inc. |
| 2.85%, 03/30/25 | 100,000 | 109,704 |
| Intercontinental Exchange, Inc. |
| 0.70%, 06/15/23 | 200,000 | 201,541 |
| 3.45%, 09/21/23 (a) | 100,000 | 108,524 |
| 3.75%, 12/01/25 (a) | 250,000 | 285,236 |
| 3.10%, 09/15/27 (a) | 100,000 | 111,429 |
| 3.75%, 09/21/28 (a) | 400,000 | 466,756 |
| 2.10%, 06/15/30 (a) | 250,000 | 260,276 |
| 1.85%, 09/15/32 (a) | 250,000 | 253,957 |
| 2.65%, 09/15/40 (a) | 250,000 | 254,457 |
| 4.25%, 09/21/48 (a) | 150,000 | 189,453 |
| 3.00%, 06/15/50 (a) | 400,000 | 421,812 |
| 3.00%, 09/15/60 (a) | 250,000 | 260,665 |
| Invesco Finance PLC |
| 3.75%, 01/15/26 | 230,000 | 259,129 |
| 5.38%, 11/30/43 | 100,000 | 123,324 |
| Jefferies Group LLC |
| 5.13%, 01/20/23 | 150,000 | 164,553 |
| 6.25%, 01/15/36 | 100,000 | 122,753 |
| Jefferies Group LLC/Jefferies Group Capital Finance, Inc. |
| 4.85%, 01/15/27 | 500,000 | 570,727 |
| 4.15%, 01/23/30 | 200,000 | 226,364 |
| Lazard Group LLC |
| 4.50%, 09/19/28 (a) | 150,000 | 173,415 |
| 4.38%, 03/11/29 (a) | 100,000 | 115,182 |
| Legg Mason, Inc. |
| 4.75%, 03/15/26 | 150,000 | 179,248 |
| 5.63%, 01/15/44 | 75,000 | 103,030 |
| Nasdaq, Inc. |
| 3.85%, 06/30/26 (a) | 150,000 | 172,957 |
| 3.25%, 04/28/50 (a) | 100,000 | 107,723 |
| Nomura Holdings, Inc. |
| 2.65%, 01/16/25 | 200,000 | 210,986 |
| 1.85%, 07/16/25 | 400,000 | 408,368 |
| 3.10%, 01/16/30 | 400,000 | 428,422 |
| 2.68%, 07/16/30 | 300,000 | 311,991 |
| Raymond James Financial, Inc. |
| 4.65%, 04/01/30 (a) | 100,000 | 122,412 |
| 4.95%, 07/15/46 | 150,000 | 193,087 |
| Stifel Financial Corp. |
| 4.25%, 07/18/24 | 100,000 | 110,652 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| TD Ameritrade Holding Corp. |
| 2.95%, 04/01/22 (a) | 150,000 | 155,666 |
| 3.75%, 04/01/24 (a) | 100,000 | 110,929 |
| 3.63%, 04/01/25 (a) | 150,000 | 168,864 |
| 2.75%, 10/01/29 (a) | 100,000 | 111,923 |
| | | 14,229,310 |
| Finance Companies 0.3% |
| AerCap Ireland Capital DAC/AerCap Global Aviation Trust |
| 5.00%, 10/01/21 | 250,000 | 257,671 |
| 4.45%, 12/16/21 (a) | 150,000 | 153,086 |
| 3.95%, 02/01/22 (a) | 150,000 | 152,013 |
| 3.50%, 05/26/22 (a) | 200,000 | 201,797 |
| 4.63%, 07/01/22 | 150,000 | 153,660 |
| 3.30%, 01/23/23 (a) | 150,000 | 150,093 |
| 4.13%, 07/03/23 (a) | 150,000 | 152,411 |
| 4.50%, 09/15/23 (a) | 250,000 | 257,645 |
| 4.88%, 01/16/24 (a) | 300,000 | 309,199 |
| 3.50%, 01/15/25 (a) | 150,000 | 145,827 |
| 6.50%, 07/15/25 (a) | 300,000 | 326,041 |
| 4.45%, 10/01/25 (a) | 150,000 | 150,167 |
| 3.65%, 07/21/27 (a) | 250,000 | 232,427 |
| Air Lease Corp. |
| 3.38%, 06/01/21 | 600,000 | 608,994 |
| 3.75%, 02/01/22 (a) | 150,000 | 153,580 |
| 2.25%, 01/15/23 | 200,000 | 201,192 |
| 2.75%, 01/15/23 (a) | 100,000 | 101,067 |
| 3.00%, 09/15/23 (a) | 100,000 | 101,297 |
| 4.25%, 09/15/24 (a) | 150,000 | 156,561 |
| 2.30%, 02/01/25 (a) | 100,000 | 97,824 |
| 3.38%, 07/01/25 (a) | 125,000 | 127,474 |
| 2.88%, 01/15/26 (a) | 200,000 | 198,237 |
| 3.75%, 06/01/26 (a) | 150,000 | 153,572 |
| 3.63%, 04/01/27 (a) | 150,000 | 151,901 |
| 3.63%, 12/01/27 (a) | 250,000 | 257,307 |
| 4.63%, 10/01/28 (a) | 100,000 | 104,398 |
| 3.25%, 10/01/29 (a) | 100,000 | 96,495 |
| 3.00%, 02/01/30 (a) | 100,000 | 94,692 |
| Aircastle Ltd. |
| 5.50%, 02/15/22 | 100,000 | 102,167 |
| 4.40%, 09/25/23 (a) | 150,000 | 148,631 |
| 4.13%, 05/01/24 (a) | 100,000 | 97,076 |
| 4.25%, 06/15/26 (a) | 300,000 | 279,921 |
| Ares Capital Corp. |
| 3.63%, 01/19/22 (a) | 100,000 | 102,971 |
| 4.20%, 06/10/24 (a) | 250,000 | 259,297 |
| 4.25%, 03/01/25 (a) | 100,000 | 103,452 |
| 3.25%, 07/15/25 (a) | 150,000 | 150,166 |
| 3.88%, 01/15/26 (a) | 200,000 | 203,276 |
| FS KKR Capital Corp. |
| 4.63%, 07/15/24 (a) | 100,000 | 100,565 |
| 4.13%, 02/01/25 (a) | 100,000 | 99,410 |
| GATX Corp. |
| 3.25%, 09/15/26 (a) | 200,000 | 213,236 |
| 3.85%, 03/30/27 (a) | 150,000 | 164,744 |
| 3.50%, 03/15/28 (a) | 150,000 | 161,554 |
| 4.70%, 04/01/29 (a) | 150,000 | 176,120 |
| GE Capital Funding LLC |
| 3.45%, 05/15/25 (a)(c) | 350,000 | 371,392 |
| 4.05%, 05/15/27 (a)(c) | 200,000 | 212,324 |
| 4.40%, 05/15/30 (a)(c) | 500,000 | 528,740 |
| 4.55%, 05/15/32 (a)(c) | 250,000 | 265,581 |
| GE Capital International Funding Co. |
| 3.37%, 11/15/25 | 300,000 | 318,574 |
| 4.42%, 11/15/35 | 2,305,000 | 2,384,165 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Goldman Sachs BDC, Inc. |
| 3.75%, 02/10/25 (a) | 50,000 | 52,587 |
| Main Street Capital Corp. |
| 5.20%, 05/01/24 | 50,000 | 52,049 |
| Oaktree Specialty Lending Corp. |
| 3.50%, 02/25/25 (a) | 50,000 | 50,456 |
| Owl Rock Capital Corp. |
| 5.25%, 04/15/24 (a) | 100,000 | 106,471 |
| 3.75%, 07/22/25 (a) | 100,000 | 99,999 |
| 4.25%, 01/15/26 (a) | 250,000 | 252,594 |
| | | 12,304,146 |
| Financial Other 0.0% |
| Blackstone/GSO Secured Lending Fund |
| 3.65%, 07/14/23 (c) | 300,000 | 302,757 |
| ORIX Corp. |
| 4.05%, 01/16/24 | 100,000 | 109,880 |
| 3.25%, 12/04/24 | 200,000 | 217,794 |
| 3.70%, 07/18/27 | 100,000 | 113,208 |
| The Andrew W Mellon Foundation |
| 0.95%, 08/01/27 (a) | 250,000 | 255,882 |
| | | 999,521 |
| Insurance 1.2% |
| Aegon NV |
| 5.50%, 04/11/48 (a)(b) | 200,000 | 219,791 |
| Aetna, Inc. |
| 2.75%, 11/15/22 (a) | 100,000 | 104,404 |
| 2.80%, 06/15/23 (a) | 250,000 | 264,447 |
| 3.50%, 11/15/24 (a) | 100,000 | 110,280 |
| 6.63%, 06/15/36 | 100,000 | 143,165 |
| 6.75%, 12/15/37 | 150,000 | 216,960 |
| 4.13%, 11/15/42 (a) | 100,000 | 115,162 |
| 4.75%, 03/15/44 (a) | 150,000 | 188,493 |
| 3.88%, 08/15/47 (a) | 150,000 | 174,905 |
| Aflac, Inc. |
| 3.63%, 06/15/23 | 200,000 | 217,812 |
| 3.63%, 11/15/24 | 100,000 | 112,939 |
| 2.88%, 10/15/26 (a) | 100,000 | 111,076 |
| 3.60%, 04/01/30 (a) | 150,000 | 176,114 |
| 4.75%, 01/15/49 (a) | 200,000 | 261,678 |
| Alleghany Corp. |
| 3.63%, 05/15/30 (a) | 200,000 | 225,132 |
| Allied World Assurance Co. Holdings Ltd. |
| 4.35%, 10/29/25 (a) | 100,000 | 107,015 |
| American Equity Investment Life Holding Co. |
| 5.00%, 06/15/27 (a) | 90,000 | 98,483 |
| American Financial Group, Inc. |
| 3.50%, 08/15/26 (a) | 150,000 | 162,775 |
| 4.50%, 06/15/47 (a) | 100,000 | 110,861 |
| American International Group, Inc. |
| 4.88%, 06/01/22 | 250,000 | 269,067 |
| 4.13%, 02/15/24 | 200,000 | 223,052 |
| 2.50%, 06/30/25 (a) | 250,000 | 267,800 |
| 3.75%, 07/10/25 (a) | 200,000 | 225,020 |
| 3.90%, 04/01/26 (a) | 250,000 | 286,221 |
| 4.20%, 04/01/28 (a) | 150,000 | 174,943 |
| 4.25%, 03/15/29 (a) | 100,000 | 117,823 |
| 3.40%, 06/30/30 (a) | 250,000 | 278,261 |
| 3.88%, 01/15/35 (a) | 228,000 | 265,914 |
| 6.25%, 05/01/36 | 280,000 | 394,608 |
| 4.50%, 07/16/44 (a) | 345,000 | 406,067 |
| 4.80%, 07/10/45 (a) | 100,000 | 122,194 |
| 4.75%, 04/01/48 (a) | 200,000 | 245,744 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 5.75%, 04/01/48 (a)(b) | 100,000 | 110,635 |
| 4.38%, 06/30/50 (a) | 200,000 | 236,745 |
| 4.38%, 01/15/55 (a) | 250,000 | 295,190 |
| 8.18%, 05/15/58 (a)(b) | 100,000 | 141,409 |
| Anthem, Inc. |
| 3.70%, 08/15/21 (a) | 150,000 | 153,560 |
| 3.13%, 05/15/22 | 150,000 | 156,860 |
| 3.30%, 01/15/23 | 330,000 | 352,293 |
| 3.50%, 08/15/24 (a) | 195,000 | 214,805 |
| 3.35%, 12/01/24 (a) | 100,000 | 110,627 |
| 2.38%, 01/15/25 (a) | 175,000 | 186,883 |
| 3.65%, 12/01/27 (a) | 250,000 | 287,290 |
| 4.10%, 03/01/28 (a) | 150,000 | 176,148 |
| 2.88%, 09/15/29 (a) | 250,000 | 273,740 |
| 2.25%, 05/15/30 (a) | 200,000 | 207,811 |
| 6.38%, 06/15/37 | 250,000 | 354,970 |
| 4.65%, 01/15/43 | 150,000 | 191,996 |
| 5.10%, 01/15/44 | 150,000 | 202,831 |
| 4.65%, 08/15/44 (a) | 300,000 | 382,669 |
| 4.38%, 12/01/47 (a) | 250,000 | 313,152 |
| 4.55%, 03/01/48 (a) | 150,000 | 192,888 |
| 3.70%, 09/15/49 (a) | 200,000 | 230,544 |
| 3.13%, 05/15/50 (a) | 200,000 | 211,651 |
| Aon Corp. |
| 4.50%, 12/15/28 (a) | 150,000 | 182,615 |
| 3.75%, 05/02/29 (a) | 150,000 | 174,107 |
| 2.80%, 05/15/30 (a) | 200,000 | 217,590 |
| Aon PLC |
| 3.50%, 06/14/24 (a) | 500,000 | 549,795 |
| 4.60%, 06/14/44 (a) | 150,000 | 192,949 |
| 4.75%, 05/15/45 (a) | 100,000 | 131,471 |
| Arch Capital Finance LLC |
| 5.03%, 12/15/46 (a) | 100,000 | 129,635 |
| Arch Capital Group Ltd. |
| 3.64%, 06/30/50 (a) | 250,000 | 271,357 |
| Arch Capital Group US, Inc. |
| 5.14%, 11/01/43 | 185,000 | 240,402 |
| Assurant, Inc. |
| 4.20%, 09/27/23 (a) | 150,000 | 161,549 |
| 3.70%, 02/22/30 (a) | 100,000 | 104,525 |
| Athene Holding Ltd. |
| 4.13%, 01/12/28 (a) | 150,000 | 163,912 |
| 6.15%, 04/03/30 (a) | 100,000 | 120,974 |
| AXA S.A. |
| 8.60%, 12/15/30 | 250,000 | 380,226 |
| AXIS Specialty Finance LLC |
| 3.90%, 07/15/29 (a) | 100,000 | 110,878 |
| 4.90%, 01/15/40 (a)(b) | 50,000 | 48,098 |
| Berkshire Hathaway Finance Corp. |
| 3.00%, 05/15/22 | 100,000 | 104,587 |
| 1.85%, 03/12/30 (a) | 100,000 | 104,198 |
| 5.75%, 01/15/40 | 150,000 | 232,430 |
| 4.30%, 05/15/43 | 300,000 | 390,481 |
| 4.20%, 08/15/48 (a) | 600,000 | 762,999 |
| 4.25%, 01/15/49 (a) | 350,000 | 455,698 |
| Berkshire Hathaway, Inc. |
| 3.40%, 01/31/22 | 250,000 | 261,402 |
| 2.75%, 03/15/23 (a) | 430,000 | 454,572 |
| 3.13%, 03/15/26 (a) | 550,000 | 616,784 |
| 4.50%, 02/11/43 | 100,000 | 134,648 |
| Brighthouse Financial, Inc. |
| 3.70%, 06/22/27 (a) | 250,000 | 262,609 |
| 5.63%, 05/15/30 (a) | 150,000 | 174,753 |
| 4.70%, 06/22/47 (a) | 250,000 | 241,881 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Brown & Brown, Inc. |
| 4.20%, 09/15/24 (a) | 100,000 | 110,924 |
| Chubb INA Holdings, Inc. |
| 2.70%, 03/13/23 | 300,000 | 317,035 |
| 3.15%, 03/15/25 | 150,000 | 167,245 |
| 3.35%, 05/03/26 (a) | 400,000 | 457,842 |
| 4.15%, 03/13/43 | 400,000 | 513,414 |
| 4.35%, 11/03/45 (a) | 250,000 | 333,914 |
| Cincinnati Financial Corp. |
| 6.13%, 11/01/34 | 250,000 | 357,831 |
| CNA Financial Corp. |
| 3.95%, 05/15/24 (a) | 100,000 | 110,756 |
| 4.50%, 03/01/26 (a) | 150,000 | 176,653 |
| 3.45%, 08/15/27 (a) | 150,000 | 166,192 |
| 3.90%, 05/01/29 (a) | 100,000 | 114,572 |
| 2.05%, 08/15/30 (a) | 250,000 | 249,524 |
| CNO Financial Group, Inc. |
| 5.25%, 05/30/29 (a) | 150,000 | 174,880 |
| Enstar Group Ltd. |
| 4.95%, 06/01/29 (a) | 100,000 | 111,383 |
| Equitable Holdings, Inc. |
| 3.90%, 04/20/23 (a) | 150,000 | 161,667 |
| 4.35%, 04/20/28 (a) | 350,000 | 400,760 |
| 5.00%, 04/20/48 (a) | 350,000 | 420,108 |
| Everest Reinsurance Holdings, Inc. |
| 4.87%, 06/01/44 | 100,000 | 114,932 |
| Fairfax Financial Holdings Ltd. |
| 4.85%, 04/17/28 (a) | 100,000 | 110,766 |
| 4.63%, 04/29/30 (a)(c) | 200,000 | 220,873 |
| Fidelity National Financial, Inc. |
| 3.40%, 06/15/30 (a) | 250,000 | 270,632 |
| First American Financial Corp. |
| 4.00%, 05/15/30 (a) | 100,000 | 108,503 |
| Globe Life, Inc. |
| 4.55%, 09/15/28 (a) | 100,000 | 119,001 |
| 2.15%, 08/15/30 (a) | 250,000 | 250,925 |
| Humana, Inc. |
| 3.85%, 10/01/24 (a) | 156,000 | 172,981 |
| 4.50%, 04/01/25 (a) | 100,000 | 115,626 |
| 3.95%, 03/15/27 (a) | 300,000 | 345,366 |
| 3.13%, 08/15/29 (a) | 150,000 | 166,712 |
| 4.88%, 04/01/30 (a) | 100,000 | 125,816 |
| 4.95%, 10/01/44 (a) | 100,000 | 134,911 |
| 4.80%, 03/15/47 (a) | 100,000 | 133,352 |
| 3.95%, 08/15/49 (a) | 50,000 | 60,594 |
| Kemper Corp. |
| 4.35%, 02/15/25 (a) | 100,000 | 110,280 |
| Lincoln National Corp. |
| 4.20%, 03/15/22 | 250,000 | 264,382 |
| 3.63%, 12/12/26 (a) | 150,000 | 168,740 |
| 3.80%, 03/01/28 (a) | 250,000 | 284,754 |
| 3.05%, 01/15/30 (a) | 100,000 | 108,516 |
| 3.40%, 01/15/31 (a) | 250,000 | 280,987 |
| 7.00%, 06/15/40 | 100,000 | 147,834 |
| Loews Corp. |
| 2.63%, 05/15/23 (a) | 200,000 | 210,891 |
| 3.20%, 05/15/30 (a) | 200,000 | 222,775 |
| 4.13%, 05/15/43 (a) | 100,000 | 115,036 |
| Manulife Financial Corp. |
| 4.15%, 03/04/26 | 200,000 | 236,920 |
| 2.48%, 05/19/27 (a) | 200,000 | 215,763 |
| 4.06%, 02/24/32 (a)(b) | 500,000 | 537,162 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Markel Corp. |
| 3.50%, 11/01/27 (a) | 150,000 | 165,533 |
| 3.35%, 09/17/29 (a) | 100,000 | 109,716 |
| 4.30%, 11/01/47 (a) | 150,000 | 181,370 |
| 4.15%, 09/17/50 (a) | 100,000 | 118,971 |
| Marsh & McLennan Cos., Inc. |
| 4.80%, 07/15/21 (a) | 100,000 | 102,772 |
| 3.88%, 03/15/24 (a) | 300,000 | 332,956 |
| 3.50%, 06/03/24 (a) | 250,000 | 274,872 |
| 3.50%, 03/10/25 (a) | 200,000 | 222,231 |
| 4.38%, 03/15/29 (a) | 250,000 | 304,711 |
| 2.25%, 11/15/30 (a) | 190,000 | 200,321 |
| 4.75%, 03/15/39 (a) | 150,000 | 201,644 |
| 4.35%, 01/30/47 (a) | 100,000 | 130,728 |
| 4.90%, 03/15/49 (a) | 250,000 | 352,906 |
| Mercury General Corp. |
| 4.40%, 03/15/27 (a) | 100,000 | 109,077 |
| MetLife, Inc. |
| 4.37%, 09/15/23 | 250,000 | 279,490 |
| 3.60%, 11/13/25 (a) | 550,000 | 627,344 |
| 4.55%, 03/23/30 (a) | 200,000 | 252,208 |
| 5.70%, 06/15/35 | 250,000 | 369,726 |
| 6.40%, 12/15/36 (a) | 230,000 | 288,297 |
| 10.75%, 08/01/39 (a)(b) | 75,000 | 123,353 |
| 5.88%, 02/06/41 | 150,000 | 221,722 |
| 4.13%, 08/13/42 | 200,000 | 246,998 |
| 4.88%, 11/13/43 | 150,000 | 202,627 |
| 4.72%, 12/15/44 | 100,000 | 132,330 |
| 4.05%, 03/01/45 | 350,000 | 427,940 |
| 4.60%, 05/13/46 (a) | 100,000 | 132,813 |
| Nationwide Financial Services, Inc. |
| 6.75%, 05/15/37 (b) | 40,000 | 47,471 |
| Old Republic International Corp. |
| 3.88%, 08/26/26 (a) | 150,000 | 168,677 |
| PartnerRe Finance B LLC |
| 3.70%, 07/02/29 (a) | 100,000 | 111,947 |
| Principal Financial Group, Inc. |
| 3.10%, 11/15/26 (a) | 250,000 | 277,839 |
| 2.13%, 06/15/30 (a) | 250,000 | 260,365 |
| 4.30%, 11/15/46 (a) | 237,000 | 292,956 |
| Prudential Financial, Inc. |
| 4.50%, 11/16/21 | 178,000 | 186,893 |
| 3.50%, 05/15/24 | 200,000 | 222,599 |
| 2.10%, 03/10/30 (a) | 200,000 | 211,733 |
| 6.63%, 12/01/37 | 350,000 | 529,098 |
| 3.00%, 03/10/40 (a) | 250,000 | 271,391 |
| 5.88%, 09/15/42 (a)(b) | 150,000 | 160,325 |
| 5.63%, 06/15/43 (a)(b) | 330,000 | 354,874 |
| 4.60%, 05/15/44 (d) | 300,000 | 373,209 |
| 5.38%, 05/15/45 (a)(b) | 150,000 | 164,454 |
| 4.50%, 09/15/47 (a)(b) | 100,000 | 106,988 |
| 3.91%, 12/07/47 (a) | 350,000 | 401,632 |
| 5.70%, 09/15/48 (a)(b) | 150,000 | 173,660 |
| 3.94%, 12/07/49 (a) | 100,000 | 115,045 |
| 4.35%, 02/25/50 (a) | 150,000 | 183,068 |
| 3.70%, 10/01/50 (a)(b) | 200,000 | 206,259 |
| 3.70%, 03/13/51 (a) | 200,000 | 225,615 |
| Prudential PLC |
| 3.13%, 04/14/30 | 100,000 | 110,725 |
| Reinsurance Group of America, Inc. |
| 3.90%, 05/15/29 (a) | 200,000 | 227,391 |
| 3.15%, 06/15/30 (a) | 200,000 | 217,301 |
| RenaissanceRe Holdings Ltd. |
| 3.60%, 04/15/29 (a) | 150,000 | 169,040 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| The Allstate Corp. |
| 3.15%, 06/15/23 | 100,000 | 107,789 |
| 3.28%, 12/15/26 (a) | 150,000 | 172,977 |
| 5.35%, 06/01/33 | 250,000 | 344,341 |
| 5.55%, 05/09/35 | 150,000 | 223,808 |
| 4.50%, 06/15/43 | 200,000 | 256,984 |
| 4.20%, 12/15/46 (a) | 100,000 | 126,333 |
| 3.85%, 08/10/49 (a) | 100,000 | 121,404 |
| 5.75%, 08/15/53 (a)(b) | 290,000 | 312,073 |
| The Chubb Corp. |
| 6.50%, 05/15/38 | 100,000 | 156,452 |
| The Hanover Insurance Group, Inc. |
| 2.50%, 09/01/30 (a) | 200,000 | 203,756 |
| The Hartford Financial Services Group, Inc. |
| 2.80%, 08/19/29 (a) | 150,000 | 162,899 |
| 6.10%, 10/01/41 | 230,000 | 329,086 |
| 4.40%, 03/15/48 (a) | 100,000 | 124,159 |
| The Progressive Corp. |
| 2.45%, 01/15/27 | 250,000 | 272,539 |
| 4.00%, 03/01/29 (a) | 150,000 | 180,964 |
| 3.20%, 03/26/30 (a) | 100,000 | 115,668 |
| 6.25%, 12/01/32 | 150,000 | 223,414 |
| 3.70%, 01/26/45 | 200,000 | 242,354 |
| 4.20%, 03/15/48 (a) | 250,000 | 328,547 |
| 3.95%, 03/26/50 (a) | 100,000 | 129,063 |
| The Travelers Cos., Inc. |
| 6.75%, 06/20/36 | 150,000 | 232,951 |
| 5.35%, 11/01/40 | 100,000 | 141,157 |
| 4.60%, 08/01/43 | 200,000 | 264,867 |
| 4.00%, 05/30/47 (a) | 300,000 | 373,374 |
| 4.10%, 03/04/49 (a) | 100,000 | 126,641 |
| 2.55%, 04/27/50 (a) | 400,000 | 398,216 |
| Transatlantic Holdings, Inc. |
| 8.00%, 11/30/39 | 100,000 | 156,054 |
| UnitedHealth Group, Inc. |
| 2.88%, 12/15/21 | 150,000 | 155,102 |
| 2.88%, 03/15/22 (a) | 200,000 | 206,615 |
| 3.35%, 07/15/22 | 550,000 | 581,265 |
| 2.38%, 10/15/22 | 150,000 | 156,568 |
| 2.75%, 02/15/23 (a) | 195,000 | 205,299 |
| 3.50%, 02/15/24 | 150,000 | 165,351 |
| 3.75%, 07/15/25 | 480,000 | 549,353 |
| 1.25%, 01/15/26 (a) | 150,000 | 154,114 |
| 3.38%, 04/15/27 | 250,000 | 286,201 |
| 2.95%, 10/15/27 | 500,000 | 561,515 |
| 3.85%, 06/15/28 | 250,000 | 296,115 |
| 3.88%, 12/15/28 | 150,000 | 179,323 |
| 2.88%, 08/15/29 | 200,000 | 224,775 |
| 2.00%, 05/15/30 (a) | 250,000 | 262,397 |
| 4.63%, 07/15/35 | 200,000 | 265,055 |
| 5.80%, 03/15/36 | 393,000 | 571,088 |
| 6.88%, 02/15/38 | 250,000 | 405,226 |
| 3.50%, 08/15/39 (a) | 250,000 | 292,340 |
| 2.75%, 05/15/40 (a) | 200,000 | 212,522 |
| 3.95%, 10/15/42 (a) | 100,000 | 121,297 |
| 4.25%, 03/15/43 (a) | 100,000 | 127,754 |
| 4.75%, 07/15/45 | 350,000 | 477,410 |
| 4.20%, 01/15/47 (a) | 150,000 | 190,315 |
| 4.25%, 04/15/47 (a) | 100,000 | 129,698 |
| 3.75%, 10/15/47 (a) | 200,000 | 241,554 |
| 4.25%, 06/15/48 (a) | 250,000 | 324,791 |
| 4.45%, 12/15/48 (a) | 425,000 | 569,693 |
| 3.70%, 08/15/49 (a) | 300,000 | 366,156 |
| 2.90%, 05/15/50 (a) | 250,000 | 266,940 |
| 3.88%, 08/15/59 (a) | 250,000 | 313,626 |
| 3.13%, 05/15/60 (a) | 150,000 | 164,994 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Unum Group |
| 4.50%, 03/15/25 (a) | 175,000 | 194,911 |
| 4.00%, 06/15/29 (a) | 150,000 | 164,533 |
| 4.50%, 12/15/49 (a) | 100,000 | 100,784 |
| Voya Financial, Inc. |
| 5.70%, 07/15/43 | 150,000 | 199,430 |
| 4.70%, 01/23/48 (a)(b) | 100,000 | 100,891 |
| 5.65%, 05/15/53 (a)(b) | 100,000 | 104,865 |
| Willis North America, Inc. |
| 4.50%, 09/15/28 (a) | 250,000 | 298,571 |
| 2.95%, 09/15/29 (a) | 200,000 | 217,178 |
| 3.88%, 09/15/49 (a) | 150,000 | 174,381 |
| WR Berkley Corp. |
| 4.00%, 05/12/50 (a) | 150,000 | 175,497 |
| XLIT Ltd. |
| 4.45%, 03/31/25 | 150,000 | 169,103 |
| 5.25%, 12/15/43 | 130,000 | 180,135 |
| | | 57,275,570 |
| REITs 0.8% |
| Agree LP |
| 2.90%, 10/01/30 (a) | 250,000 | 257,489 |
| Alexandria Real Estate Equities, Inc. |
| 4.00%, 01/15/24 (a) | 200,000 | 221,152 |
| 3.45%, 04/30/25 (a) | 150,000 | 167,314 |
| 4.50%, 07/30/29 (a) | 150,000 | 182,979 |
| 2.75%, 12/15/29 (a) | 150,000 | 162,317 |
| 4.70%, 07/01/30 (a) | 200,000 | 248,067 |
| 1.88%, 02/01/33 (a) | 250,000 | 248,862 |
| 4.85%, 04/15/49 (a) | 100,000 | 138,173 |
| 4.00%, 02/01/50 (a) | 100,000 | 122,428 |
| American Campus Communities Operating Partnership LP |
| 4.13%, 07/01/24 (a) | 150,000 | 162,457 |
| 3.30%, 07/15/26 (a) | 100,000 | 107,056 |
| 2.85%, 02/01/30 (a) | 100,000 | 100,126 |
| 3.88%, 01/30/31 (a) | 125,000 | 135,780 |
| American Homes 4 Rent LP |
| 4.25%, 02/15/28 (a) | 100,000 | 114,359 |
| 4.90%, 02/15/29 (a) | 100,000 | 119,483 |
| AvalonBay Communities, Inc. |
| 3.50%, 11/15/24 (a) | 250,000 | 277,109 |
| 2.95%, 05/11/26 (a) | 100,000 | 109,357 |
| 2.90%, 10/15/26 (a) | 250,000 | 274,925 |
| 3.30%, 06/01/29 (a) | 200,000 | 227,930 |
| 2.30%, 03/01/30 (a) | 100,000 | 106,263 |
| 2.45%, 01/15/31 (a) | 150,000 | 160,601 |
| 3.90%, 10/15/46 (a) | 150,000 | 184,159 |
| Boston Properties LP |
| 3.85%, 02/01/23 (a) | 500,000 | 534,422 |
| 3.13%, 09/01/23 (a) | 250,000 | 265,117 |
| 3.80%, 02/01/24 (a) | 195,000 | 212,206 |
| 3.65%, 02/01/26 (a) | 150,000 | 167,740 |
| 2.75%, 10/01/26 (a) | 100,000 | 108,162 |
| 4.50%, 12/01/28 (a) | 150,000 | 178,876 |
| 2.90%, 03/15/30 (a) | 300,000 | 318,309 |
| 3.25%, 01/30/31 (a) | 200,000 | 218,630 |
| Brandywine Operating Partnership LP |
| 4.10%, 10/01/24 (a) | 150,000 | 157,992 |
| 4.55%, 10/01/29 (a) | 100,000 | 107,112 |
| Brixmor Operating Partnership LP |
| 3.85%, 02/01/25 (a) | 150,000 | 159,151 |
| 4.13%, 06/15/26 (a) | 150,000 | 163,527 |
| 4.13%, 05/15/29 (a) | 150,000 | 161,763 |
| 4.05%, 07/01/30 (a) | 450,000 | 484,382 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Camden Property Trust |
| 4.10%, 10/15/28 (a) | 200,000 | 237,715 |
| 3.15%, 07/01/29 (a) | 150,000 | 168,695 |
| 3.35%, 11/01/49 (a) | 50,000 | 55,803 |
| Columbia Property Trust Operating Partnership LP |
| 4.15%, 04/01/25 (a) | 100,000 | 105,561 |
| Corporate Office Properties LP |
| 3.70%, 06/15/21 (a) | 150,000 | 151,906 |
| CubeSmart LP |
| 3.13%, 09/01/26 (a) | 150,000 | 162,275 |
| 4.38%, 02/15/29 (a) | 100,000 | 118,274 |
| CyrusOne LP/CyrusOne Finance Corp. |
| 2.90%, 11/15/24 (a) | 100,000 | 106,847 |
| 3.45%, 11/15/29 (a) | 100,000 | 109,433 |
| Digital Realty Trust LP |
| 3.70%, 08/15/27 (a) | 150,000 | 171,450 |
| 4.45%, 07/15/28 (a) | 150,000 | 180,572 |
| 3.60%, 07/01/29 (a) | 150,000 | 173,200 |
| Duke Realty LP |
| 3.75%, 12/01/24 (a) | 150,000 | 166,042 |
| 3.25%, 06/30/26 (a) | 230,000 | 254,036 |
| 2.88%, 11/15/29 (a) | 50,000 | 55,050 |
| 1.75%, 07/01/30 (a) | 250,000 | 251,311 |
| 3.05%, 03/01/50 (a) | 50,000 | 54,425 |
| EPR Properties |
| 4.75%, 12/15/26 (a) | 100,000 | 97,503 |
| 4.95%, 04/15/28 (a) | 250,000 | 243,352 |
| 3.75%, 08/15/29 (a) | 100,000 | 88,521 |
| ERP Operating LP |
| 4.63%, 12/15/21 (a) | 195,000 | 203,389 |
| 3.38%, 06/01/25 (a) | 100,000 | 110,918 |
| 2.85%, 11/01/26 (a) | 150,000 | 166,552 |
| 3.00%, 07/01/29 (a) | 100,000 | 111,396 |
| 2.50%, 02/15/30 (a) | 200,000 | 215,485 |
| 4.50%, 07/01/44 (a) | 150,000 | 194,848 |
| 4.50%, 06/01/45 (a) | 100,000 | 130,599 |
| 4.00%, 08/01/47 (a) | 100,000 | 123,860 |
| Essex Portfolio LP |
| 3.50%, 04/01/25 (a) | 330,000 | 366,579 |
| 4.00%, 03/01/29 (a) | 150,000 | 174,824 |
| 3.00%, 01/15/30 (a) | 350,000 | 380,362 |
| 1.65%, 01/15/31 (a) | 250,000 | 243,719 |
| 2.65%, 03/15/32 (a) | 150,000 | 159,571 |
| 2.65%, 09/01/50 (a) | 250,000 | 232,496 |
| Federal Realty Investment Trust |
| 3.95%, 01/15/24 (a) | 175,000 | 190,238 |
| 3.25%, 07/15/27 (a) | 100,000 | 106,843 |
| 3.50%, 06/01/30 (a) | 100,000 | 108,475 |
| 4.50%, 12/01/44 (a) | 100,000 | 116,428 |
| Healthcare Trust of America Holdings LP |
| 3.50%, 08/01/26 (a) | 200,000 | 221,972 |
| 3.10%, 02/15/30 (a) | 300,000 | 319,267 |
| Healthpeak Properties, Inc. |
| 4.25%, 11/15/23 (a) | 12,000 | 13,178 |
| 4.20%, 03/01/24 (a) | 300,000 | 330,754 |
| 3.88%, 08/15/24 (a) | 100,000 | 111,584 |
| 3.40%, 02/01/25 (a) | 200,000 | 221,791 |
| 3.25%, 07/15/26 (a) | 150,000 | 168,027 |
| 3.50%, 07/15/29 (a) | 150,000 | 168,829 |
| 3.00%, 01/15/30 (a) | 100,000 | 108,891 |
| Highwoods Realty LP |
| 4.20%, 04/15/29 (a) | 100,000 | 112,241 |
| 3.05%, 02/15/30 (a) | 150,000 | 155,474 |
| 2.60%, 02/01/31 (a) | 250,000 | 249,142 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Host Hotels & Resorts LP |
| 3.88%, 04/01/24 (a) | 100,000 | 104,158 |
| 4.00%, 06/15/25 (a) | 180,000 | 188,399 |
| 3.38%, 12/15/29 (a) | 150,000 | 146,911 |
| 3.50%, 09/15/30 (a) | 325,000 | 321,596 |
| Hudson Pacific Properties LP |
| 4.65%, 04/01/29 (a) | 100,000 | 113,125 |
| 3.25%, 01/15/30 (a) | 350,000 | 361,193 |
| Kilroy Realty LP |
| 4.75%, 12/15/28 (a) | 100,000 | 115,744 |
| 4.25%, 08/15/29 (a) | 195,000 | 220,993 |
| 3.05%, 02/15/30 (a) | 150,000 | 156,817 |
| 2.50%, 11/15/32 (a) | 250,000 | 245,439 |
| Kimco Realty Corp. |
| 3.40%, 11/01/22 (a) | 245,000 | 259,204 |
| 3.30%, 02/01/25 (a) | 250,000 | 269,742 |
| 1.90%, 03/01/28 (a) | 200,000 | 197,842 |
| 2.70%, 10/01/30 (a) | 200,000 | 205,359 |
| 4.25%, 04/01/45 (a) | 250,000 | 267,175 |
| 4.13%, 12/01/46 (a) | 100,000 | 105,431 |
| Lexington Realty Trust |
| 2.70%, 09/15/30 (a) | 200,000 | 202,991 |
| Life Storage LP |
| 3.88%, 12/15/27 (a) | 150,000 | 166,768 |
| 4.00%, 06/15/29 (a) | 100,000 | 112,809 |
| Mid-America Apartments LP |
| 4.00%, 11/15/25 (a) | 100,000 | 113,766 |
| 4.20%, 06/15/28 (a) | 150,000 | 175,358 |
| 3.95%, 03/15/29 (a) | 50,000 | 58,222 |
| 2.75%, 03/15/30 (a) | 100,000 | 108,136 |
| 1.70%, 02/15/31 (a) | 250,000 | 246,329 |
| National Retail Properties, Inc. |
| 4.30%, 10/15/28 (a) | 250,000 | 279,209 |
| 2.50%, 04/15/30 (a) | 100,000 | 98,778 |
| 4.80%, 10/15/48 (a) | 100,000 | 116,549 |
| Office Properties Income Trust |
| 4.00%, 07/15/22 (a) | 150,000 | 150,020 |
| 4.25%, 05/15/24 (a) | 150,000 | 153,259 |
| Omega Healthcare Investors, Inc. |
| 4.95%, 04/01/24 (a) | 496,000 | 527,374 |
| 4.75%, 01/15/28 (a) | 100,000 | 108,108 |
| 3.63%, 10/01/29 (a) | 150,000 | 151,637 |
| Physicians Realty LP |
| 4.30%, 03/15/27 (a) | 100,000 | 106,890 |
| Piedmont Operating Partnership LP |
| 3.40%, 06/01/23 (a) | 100,000 | 103,120 |
| 3.15%, 08/15/30 (a) | 200,000 | 196,461 |
| Prologis LP |
| 4.25%, 08/15/23 (a) | 309,000 | 344,844 |
| 4.38%, 02/01/29 (a) | 150,000 | 185,907 |
| 2.25%, 04/15/30 (a) | 350,000 | 374,706 |
| 1.25%, 10/15/30 (a) | 250,000 | 244,849 |
| 3.00%, 04/15/50 (a) | 150,000 | 163,894 |
| 2.13%, 10/15/50 (a) | 200,000 | 185,100 |
| Public Storage |
| 3.39%, 05/01/29 (a) | 150,000 | 175,003 |
| Realty Income Corp. |
| 4.65%, 08/01/23 (a) | 300,000 | 333,700 |
| 3.88%, 04/15/25 (a) | 150,000 | 170,093 |
| 4.13%, 10/15/26 (a) | 100,000 | 116,221 |
| 3.00%, 01/15/27 (a) | 330,000 | 357,811 |
| 3.25%, 01/15/31 (a) | 200,000 | 222,934 |
| 4.65%, 03/15/47 (a) | 150,000 | 197,281 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Regency Centers LP |
| 4.13%, 03/15/28 (a) | 150,000 | 167,237 |
| 3.70%, 06/15/30 (a) | 200,000 | 220,531 |
| 4.40%, 02/01/47 (a) | 100,000 | 113,234 |
| 4.65%, 03/15/49 (a) | 200,000 | 234,014 |
| Retail Properties of America, Inc. |
| 4.75%, 09/15/30 (a) | 200,000 | 198,630 |
| Sabra Health Care LP/Sabra Capital Corp. |
| 3.90%, 10/15/29 (a) | 150,000 | 145,901 |
| Simon Property Group LP |
| 2.50%, 07/15/21 (a) | 150,000 | 151,952 |
| 2.35%, 01/30/22 (a) | 750,000 | 765,307 |
| 2.75%, 02/01/23 (a) | 200,000 | 208,314 |
| 2.00%, 09/13/24 (a) | 250,000 | 258,774 |
| 3.50%, 09/01/25 (a) | 250,000 | 275,226 |
| 3.25%, 11/30/26 (a) | 250,000 | 275,065 |
| 3.38%, 12/01/27 (a) | 100,000 | 108,502 |
| 2.45%, 09/13/29 (a) | 250,000 | 250,112 |
| 6.75%, 02/01/40 (a) | 250,000 | 356,966 |
| 4.25%, 11/30/46 (a) | 150,000 | 166,711 |
| 3.25%, 09/13/49 (a) | 150,000 | 143,128 |
| 3.80%, 07/15/50 (a) | 250,000 | 260,306 |
| SITE Centers Corp. |
| 3.63%, 02/01/25 (a) | 150,000 | 153,878 |
| 4.70%, 06/01/27 (a) | 100,000 | 106,297 |
| SL Green Operating Partnership LP |
| 3.25%, 10/15/22 (a) | 100,000 | 102,153 |
| Spirit Realty LP |
| 4.45%, 09/15/26 (a) | 100,000 | 107,506 |
| 3.40%, 01/15/30 (a) | 150,000 | 150,050 |
| 3.20%, 02/15/31 (a) | 250,000 | 245,122 |
| STORE Capital Corp. |
| 4.50%, 03/15/28 (a) | 100,000 | 106,980 |
| Tanger Properties LP |
| 3.88%, 07/15/27 (a) | 100,000 | 96,391 |
| UDR, Inc. |
| 2.95%, 09/01/26 (a) | 150,000 | 162,643 |
| 3.50%, 01/15/28 (a) | 250,000 | 278,924 |
| 3.20%, 01/15/30 (a) | 200,000 | 225,009 |
| 2.10%, 08/01/32 (a) | 150,000 | 151,032 |
| Ventas Realty LP |
| 3.50%, 04/15/24 (a) | 100,000 | 107,133 |
| 2.65%, 01/15/25 (a) | 300,000 | 314,415 |
| 3.50%, 02/01/25 (a) | 150,000 | 161,780 |
| 3.25%, 10/15/26 (a) | 100,000 | 106,697 |
| 3.85%, 04/01/27 (a) | 250,000 | 269,769 |
| 4.40%, 01/15/29 (a) | 350,000 | 392,325 |
| 4.75%, 11/15/30 (a) | 100,000 | 113,869 |
| 5.70%, 09/30/43 (a) | 100,000 | 118,280 |
| 4.38%, 02/01/45 (a) | 200,000 | 207,547 |
| VEREIT Operating Partnership LP |
| 4.60%, 02/06/24 (a) | 200,000 | 215,498 |
| 3.95%, 08/15/27 (a) | 150,000 | 160,699 |
| 3.40%, 01/15/28 (a) | 200,000 | 207,792 |
| 3.10%, 12/15/29 (a) | 100,000 | 101,217 |
| Vornado Realty LP |
| 3.50%, 01/15/25 (a) | 250,000 | 259,540 |
| Welltower, Inc. |
| 3.75%, 03/15/23 (a) | 150,000 | 159,082 |
| 4.50%, 01/15/24 (a) | 200,000 | 219,988 |
| 3.63%, 03/15/24 (a) | 300,000 | 325,414 |
| 4.00%, 06/01/25 (a) | 150,000 | 169,443 |
| 4.25%, 04/01/26 (a) | 500,000 | 572,822 |
| 4.13%, 03/15/29 (a) | 250,000 | 281,907 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 2.75%, 01/15/31 (a) | 250,000 | 255,035 |
| 4.95%, 09/01/48 (a) | 100,000 | 121,392 |
| WP Carey, Inc. |
| 4.00%, 02/01/25 (a) | 100,000 | 109,285 |
| 4.25%, 10/01/26 (a) | 150,000 | 168,188 |
| | | 36,367,745 |
| | | 388,559,501 |
| |
| Industrial 16.8% |
| Basic Industry 0.8% |
| Air Products & Chemicals, Inc. |
| 1.50%, 10/15/25 (a) | 250,000 | 260,790 |
| 2.05%, 05/15/30 (a) | 200,000 | 211,593 |
| 2.70%, 05/15/40 (a) | 200,000 | 214,818 |
| 2.80%, 05/15/50 (a) | 200,000 | 213,147 |
| Airgas, Inc. |
| 3.65%, 07/15/24 (a) | 95,000 | 105,138 |
| Albemarle Corp. |
| 5.45%, 12/01/44 (a) | 50,000 | 53,883 |
| Barrick Gold Corp. |
| 5.25%, 04/01/42 | 100,000 | 137,621 |
| Barrick North America Finance LLC |
| 5.70%, 05/30/41 | 100,000 | 141,740 |
| 5.75%, 05/01/43 | 150,000 | 219,908 |
| Barrick PD Australia Finance Pty Ltd. |
| 5.95%, 10/15/39 | 250,000 | 357,782 |
| BHP Billiton Finance (USA) Ltd. |
| 3.25%, 11/21/21 | 150,000 | 155,117 |
| 2.88%, 02/24/22 | 150,000 | 155,275 |
| 3.85%, 09/30/23 | 200,000 | 220,951 |
| 6.42%, 03/01/26 | 150,000 | 191,400 |
| 4.13%, 02/24/42 | 95,000 | 120,169 |
| 5.00%, 09/30/43 | 600,000 | 857,310 |
| Cabot Corp. |
| 4.00%, 07/01/29 (a) | 150,000 | 159,923 |
| Celanese US Holdings LLC |
| 4.63%, 11/15/22 | 100,000 | 107,939 |
| 3.50%, 05/08/24 (a) | 100,000 | 107,297 |
| Celulosa Arauco y Constitucion S.A. |
| 3.88%, 11/02/27 (a) | 200,000 | 213,588 |
| Domtar Corp. |
| 4.40%, 04/01/22 (a) | 150,000 | 154,713 |
| DuPont de Nemours, Inc. |
| 2.17%, 05/01/23 | 500,000 | 510,162 |
| 4.21%, 11/15/23 (a) | 400,000 | 442,280 |
| 4.49%, 11/15/25 (a) | 250,000 | 290,974 |
| 4.73%, 11/15/28 (a) | 400,000 | 487,716 |
| 5.32%, 11/15/38 (a) | 350,000 | 451,099 |
| 5.42%, 11/15/48 (a) | 400,000 | 547,646 |
| Eastman Chemical Co. |
| 3.60%, 08/15/22 (a) | 200,000 | 209,768 |
| 3.80%, 03/15/25 (a) | 150,000 | 166,261 |
| 4.80%, 09/01/42 (a) | 250,000 | 298,400 |
| Ecolab, Inc. |
| 4.35%, 12/08/21 | 122,000 | 127,867 |
| 2.38%, 08/10/22 (a) | 150,000 | 155,684 |
| 2.70%, 11/01/26 (a) | 150,000 | 168,497 |
| 3.25%, 12/01/27 (a) | 150,000 | 170,771 |
| 4.80%, 03/24/30 (a) | 200,000 | 254,431 |
| 1.30%, 01/30/31 (a) | 200,000 | 195,606 |
| 5.50%, 12/08/41 | 150,000 | 218,342 |
| 2.13%, 08/15/50 (a) | 250,000 | 231,517 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| EI du Pont de Nemours & Co. |
| 1.70%, 07/15/25 (a) | 200,000 | 208,349 |
| Fibria Overseas Finance Ltd. |
| 4.00%, 01/14/25 (a) | 100,000 | 105,324 |
| 5.50%, 01/17/27 | 100,000 | 111,412 |
| FMC Corp. |
| 3.20%, 10/01/26 (a) | 100,000 | 112,139 |
| 3.45%, 10/01/29 (a) | 100,000 | 112,117 |
| 4.50%, 10/01/49 (a) | 100,000 | 125,925 |
| Georgia-Pacific LLC |
| 7.75%, 11/15/29 | 150,000 | 225,035 |
| 8.88%, 05/15/31 | 100,000 | 163,985 |
| Huntsman International LLC |
| 5.13%, 11/15/22 (a) | 150,000 | 161,264 |
| 4.50%, 05/01/29 (a) | 100,000 | 111,326 |
| International Flavors & Fragrances, Inc. |
| 4.45%, 09/26/28 (a) | 100,000 | 116,265 |
| 4.38%, 06/01/47 (a) | 200,000 | 228,137 |
| 5.00%, 09/26/48 (a) | 150,000 | 187,415 |
| International Paper Co. |
| 3.65%, 06/15/24 (a) | 200,000 | 221,386 |
| 3.80%, 01/15/26 (a) | 150,000 | 171,379 |
| 3.00%, 02/15/27 (a) | 150,000 | 165,086 |
| 5.00%, 09/15/35 (a) | 250,000 | 323,396 |
| 7.30%, 11/15/39 | 100,000 | 145,703 |
| 6.00%, 11/15/41 (a) | 200,000 | 271,132 |
| 4.80%, 06/15/44 (a) | 100,000 | 122,888 |
| 4.40%, 08/15/47 (a) | 400,000 | 484,316 |
| 4.35%, 08/15/48 (a) | 100,000 | 120,583 |
| Kinross Gold Corp. |
| 5.13%, 09/01/21 (a) | 150,000 | 154,985 |
| 4.50%, 07/15/27 (a) | 100,000 | 114,373 |
| LYB International Finance BV |
| 4.00%, 07/15/23 | 150,000 | 163,443 |
| 5.25%, 07/15/43 | 150,000 | 184,318 |
| 4.88%, 03/15/44 (a) | 150,000 | 179,058 |
| LYB International Finance II BV |
| 3.50%, 03/02/27 (a) | 250,000 | 278,452 |
| LYB International Finance III LLC |
| 2.88%, 05/01/25 (a) | 100,000 | 107,505 |
| 3.38%, 05/01/30 (a) | 300,000 | 327,586 |
| 4.20%, 10/15/49 (a) | 100,000 | 110,844 |
| 4.20%, 05/01/50 (a) | 250,000 | 276,080 |
| LyondellBasell Industries N.V. |
| 6.00%, 11/15/21 (a) | 250,000 | 262,944 |
| 4.63%, 02/26/55 (a) | 100,000 | 114,503 |
| Newmont Corp. |
| 3.50%, 03/15/22 (a) | 200,000 | 207,931 |
| 3.70%, 03/15/23 (a) | 27,000 | 28,678 |
| 2.80%, 10/01/29 (a) | 100,000 | 108,685 |
| 2.25%, 10/01/30 (a) | 100,000 | 104,674 |
| 5.88%, 04/01/35 | 100,000 | 145,197 |
| 4.88%, 03/15/42 (a) | 330,000 | 455,289 |
| 5.45%, 06/09/44 (a) | 100,000 | 141,322 |
| Nucor Corp. |
| 2.00%, 06/01/25 (a) | 250,000 | 262,494 |
| 3.95%, 05/01/28 (a) | 250,000 | 292,166 |
| 2.70%, 06/01/30 (a) | 250,000 | 269,886 |
| 5.20%, 08/01/43 (a) | 200,000 | 268,558 |
| 4.40%, 05/01/48 (a) | 100,000 | 127,810 |
| Nutrien Ltd. |
| 3.15%, 10/01/22 (a) | 195,000 | 204,290 |
| 1.90%, 05/13/23 | 200,000 | 206,992 |
| 3.63%, 03/15/24 (a) | 200,000 | 218,322 |
| 3.38%, 03/15/25 (a) | 180,000 | 199,421 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 4.20%, 04/01/29 (a) | 100,000 | 118,388 |
| 6.13%, 01/15/41 (a) | 145,000 | 193,309 |
| 4.90%, 06/01/43 (a) | 250,000 | 308,416 |
| 5.25%, 01/15/45 (a) | 150,000 | 190,881 |
| 5.00%, 04/01/49 (a) | 100,000 | 131,587 |
| 3.95%, 05/13/50 (a) | 200,000 | 232,214 |
| Packaging Corp. of America |
| 4.50%, 11/01/23 (a) | 50,000 | 55,428 |
| 3.40%, 12/15/27 (a) | 100,000 | 112,593 |
| 3.00%, 12/15/29 (a) | 150,000 | 164,576 |
| 4.05%, 12/15/49 (a) | 100,000 | 120,992 |
| PPG Industries, Inc. |
| 3.20%, 03/15/23 (a) | 100,000 | 106,534 |
| 2.40%, 08/15/24 (a) | 100,000 | 106,590 |
| 2.80%, 08/15/29 (a) | 100,000 | 108,863 |
| 2.55%, 06/15/30 (a) | 200,000 | 213,777 |
| Praxair, Inc. |
| 3.00%, 09/01/21 | 195,000 | 200,362 |
| 2.45%, 02/15/22 (a) | 150,000 | 153,794 |
| 2.65%, 02/05/25 (a) | 250,000 | 270,797 |
| 3.20%, 01/30/26 (a) | 150,000 | 168,551 |
| 1.10%, 08/10/30 (a) | 200,000 | 195,962 |
| 2.00%, 08/10/50 (a) | 250,000 | 232,772 |
| Reliance Steel & Aluminum Co. |
| 2.15%, 08/15/30 (a) | 200,000 | 198,586 |
| Rio Tinto Alcan, Inc. |
| 7.25%, 03/15/31 | 100,000 | 148,757 |
| Rio Tinto Finance (USA) Ltd. |
| 3.75%, 06/15/25 (a) | 150,000 | 170,029 |
| 7.13%, 07/15/28 | 100,000 | 142,252 |
| 5.20%, 11/02/40 | 250,000 | 358,065 |
| Rio Tinto Finance (USA) PLC |
| 4.75%, 03/22/42 (a) | 200,000 | 273,905 |
| 4.13%, 08/21/42 (a) | 200,000 | 257,802 |
| Rohm & Haas Co. |
| 7.85%, 07/15/29 | 250,000 | 356,210 |
| RPM International, Inc. |
| 4.55%, 03/01/29 (a) | 100,000 | 116,573 |
| 4.25%, 01/15/48 (a) | 100,000 | 107,289 |
| Southern Copper Corp. |
| 3.88%, 04/23/25 | 250,000 | 277,119 |
| 7.50%, 07/27/35 | 300,000 | 448,261 |
| 6.75%, 04/16/40 | 100,000 | 147,002 |
| 5.25%, 11/08/42 | 250,000 | 321,614 |
| 5.88%, 04/23/45 | 250,000 | 347,692 |
| Steel Dynamics, Inc. |
| 2.80%, 12/15/24 (a) | 100,000 | 106,210 |
| 2.40%, 06/15/25 (a) | 150,000 | 157,936 |
| 5.00%, 12/15/26 (a) | 200,000 | 213,860 |
| 3.45%, 04/15/30 (a) | 100,000 | 110,176 |
| Suzano Austria GmbH |
| 6.00%, 01/15/29 (a) | 400,000 | 454,374 |
| 5.00%, 01/15/30 (a) | 200,000 | 214,683 |
| Teck Resources Ltd. |
| 3.90%, 07/15/30 (a) | 200,000 | 205,644 |
| 6.13%, 10/01/35 | 75,000 | 88,154 |
| 6.00%, 08/15/40 (a) | 100,000 | 108,737 |
| 6.25%, 07/15/41 (a) | 100,000 | 112,369 |
| 5.20%, 03/01/42 (a) | 150,000 | 149,747 |
| 5.40%, 02/01/43 (a) | 100,000 | 102,926 |
| The Dow Chemical Co. |
| 3.15%, 05/15/24 (a) | 150,000 | 162,410 |
| 3.50%, 10/01/24 (a) | 150,000 | 164,559 |
| 3.63%, 05/15/26 (a) | 150,000 | 167,839 |
| 7.38%, 11/01/29 | 174,000 | 247,197 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 2.10%, 11/15/30 (a) | 250,000 | 246,741 |
| 4.25%, 10/01/34 (a) | 150,000 | 178,206 |
| 9.40%, 05/15/39 | 100,000 | 171,265 |
| 5.25%, 11/15/41 (a) | 100,000 | 122,187 |
| 4.38%, 11/15/42 (a) | 250,000 | 284,006 |
| 4.63%, 10/01/44 (a) | 100,000 | 115,715 |
| 5.55%, 11/30/48 (a) | 150,000 | 198,867 |
| 4.80%, 05/15/49 (a) | 300,000 | 360,354 |
| 3.60%, 11/15/50 (a) | 250,000 | 255,347 |
| The Mosaic Co. |
| 3.25%, 11/15/22 (a) | 300,000 | 313,552 |
| 4.05%, 11/15/27 (a) | 250,000 | 276,299 |
| 4.88%, 11/15/41 (a) | 100,000 | 104,331 |
| 5.63%, 11/15/43 (a) | 100,000 | 116,090 |
| The Sherwin-Williams Co. |
| 3.13%, 06/01/24 (a) | 100,000 | 108,873 |
| 3.45%, 08/01/25 (a) | 200,000 | 222,689 |
| 3.45%, 06/01/27 (a) | 250,000 | 284,206 |
| 2.95%, 08/15/29 (a) | 200,000 | 220,632 |
| 2.30%, 05/15/30 (a) | 100,000 | 104,312 |
| 4.00%, 12/15/42 (a) | 100,000 | 111,885 |
| 4.50%, 06/01/47 (a) | 150,000 | 190,645 |
| 3.80%, 08/15/49 (a) | 100,000 | 116,584 |
| 3.30%, 05/15/50 (a) | 100,000 | 108,075 |
| Vale Overseas Ltd. |
| 6.25%, 08/10/26 | 250,000 | 298,750 |
| 3.75%, 07/08/30 (a) | 400,000 | 420,742 |
| 8.25%, 01/17/34 | 100,000 | 143,767 |
| 6.88%, 11/21/36 | 350,000 | 465,342 |
| 6.88%, 11/10/39 | 200,000 | 270,257 |
| Vale S.A. |
| 5.63%, 09/11/42 | 100,000 | 120,152 |
| Westlake Chemical Corp. |
| 3.60%, 08/15/26 (a) | 100,000 | 109,274 |
| 3.38%, 06/15/30 (a) | 250,000 | 266,220 |
| 5.00%, 08/15/46 (a) | 100,000 | 113,834 |
| 4.38%, 11/15/47 (a) | 100,000 | 105,647 |
| WestRock MWV LLC |
| 7.95%, 02/15/31 | 150,000 | 215,279 |
| Weyerhaeuser Co. |
| 4.63%, 09/15/23 | 150,000 | 167,000 |
| 4.00%, 11/15/29 (a) | 150,000 | 173,335 |
| 4.00%, 04/15/30 (a) | 150,000 | 175,356 |
| 7.38%, 03/15/32 | 250,000 | 362,755 |
| WRKCo, Inc. |
| 3.75%, 03/15/25 (a) | 300,000 | 336,259 |
| 4.65%, 03/15/26 (a) | 150,000 | 176,587 |
| 4.00%, 03/15/28 (a) | 150,000 | 172,008 |
| 3.90%, 06/01/28 (a) | 100,000 | 114,272 |
| 4.90%, 03/15/29 (a) | 100,000 | 123,301 |
| 3.00%, 06/15/33 (a) | 250,000 | 271,916 |
| | | 37,434,768 |
| Capital Goods 1.5% |
| 3M Co. |
| 3.00%, 09/14/21 (a) | 150,000 | 153,898 |
| 1.63%, 09/19/21 (a) | 150,000 | 152,023 |
| 2.00%, 06/26/22 | 263,000 | 271,125 |
| 3.25%, 02/14/24 (a) | 250,000 | 273,001 |
| 2.00%, 02/14/25 (a) | 150,000 | 159,204 |
| 2.65%, 04/15/25 (a) | 150,000 | 163,363 |
| 3.00%, 08/07/25 | 100,000 | 111,378 |
| 2.88%, 10/15/27 (a) | 250,000 | 281,265 |
| 3.38%, 03/01/29 (a) | 350,000 | 404,024 |
| 3.05%, 04/15/30 (a) | 200,000 | 229,055 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.88%, 06/15/44 | 100,000 | 121,697 |
| 3.13%, 09/19/46 (a) | 100,000 | 110,226 |
| 4.00%, 09/14/48 (a) | 250,000 | 317,090 |
| 3.25%, 08/26/49 (a) | 200,000 | 226,949 |
| 3.70%, 04/15/50 (a) | 100,000 | 122,179 |
| ABB Finance USA, Inc. |
| 2.88%, 05/08/22 | 250,000 | 260,182 |
| 3.80%, 04/03/28 (a) | 150,000 | 178,176 |
| 4.38%, 05/08/42 | 100,000 | 129,811 |
| Allegion PLC |
| 3.50%, 10/01/29 (a) | 100,000 | 109,569 |
| Allegion US Holding Co., Inc. |
| 3.20%, 10/01/24 (a) | 250,000 | 266,022 |
| Amcor Finance USA, Inc. |
| 4.50%, 05/15/28 (a) | 100,000 | 118,083 |
| Amphenol Corp. |
| 3.20%, 04/01/24 (a) | 100,000 | 108,183 |
| 2.05%, 03/01/25 (a) | 100,000 | 105,477 |
| 2.80%, 02/15/30 (a) | 150,000 | 165,600 |
| Avery Dennison Corp. |
| 2.65%, 04/30/30 (a) | 100,000 | 106,587 |
| Bemis Co., Inc. |
| 2.63%, 06/19/30 (a) | 250,000 | 267,847 |
| Carlisle Cos., Inc. |
| 3.75%, 12/01/27 (a) | 150,000 | 172,102 |
| 2.75%, 03/01/30 (a) | 150,000 | 159,400 |
| Carrier Global Corp. |
| 1.92%, 02/15/23 (a)(c) | 100,000 | 102,877 |
| 2.24%, 02/15/25 (a)(c) | 425,000 | 445,759 |
| 2.49%, 02/15/27 (a)(c) | 100,000 | 105,208 |
| 2.72%, 02/15/30 (a)(c) | 400,000 | 420,402 |
| 2.70%, 02/15/31 (a)(c) | 250,000 | 262,294 |
| 3.38%, 04/05/40 (a)(c) | 250,000 | 261,337 |
| 3.58%, 04/05/50 (a)(c) | 325,000 | 346,567 |
| Caterpillar Financial Services Corp. |
| 1.70%, 08/09/21 | 330,000 | 334,589 |
| 3.15%, 09/07/21 | 100,000 | 102,932 |
| 2.95%, 02/26/22 | 150,000 | 155,892 |
| 0.95%, 05/13/22 | 200,000 | 202,030 |
| 1.90%, 09/06/22 | 150,000 | 154,764 |
| 1.95%, 11/18/22 | 150,000 | 155,367 |
| 2.63%, 03/01/23 | 100,000 | 105,540 |
| 0.65%, 07/07/23 | 400,000 | 402,966 |
| 2.85%, 05/17/24 | 100,000 | 108,285 |
| 3.30%, 06/09/24 | 200,000 | 220,096 |
| 2.15%, 11/08/24 | 150,000 | 159,652 |
| 3.25%, 12/01/24 | 100,000 | 110,723 |
| 1.45%, 05/15/25 | 300,000 | 311,038 |
| 2.40%, 08/09/26 | 362,000 | 394,812 |
| Caterpillar, Inc. |
| 2.60%, 06/26/22 (a) | 200,000 | 207,192 |
| 3.40%, 05/15/24 (a) | 135,000 | 148,344 |
| 2.60%, 09/19/29 (a) | 100,000 | 110,168 |
| 2.60%, 04/09/30 (a) | 200,000 | 220,234 |
| 5.20%, 05/27/41 | 150,000 | 209,734 |
| 3.80%, 08/15/42 | 350,000 | 428,862 |
| 4.30%, 05/15/44 (a) | 100,000 | 128,827 |
| 3.25%, 09/19/49 (a) | 100,000 | 113,879 |
| 3.25%, 04/09/50 (a) | 400,000 | 455,196 |
| 4.75%, 05/15/64 (a) | 100,000 | 141,995 |
| CNH Industrial Capital LLC |
| 1.95%, 07/02/23 | 250,000 | 254,132 |
| 4.20%, 01/15/24 | 200,000 | 216,659 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| CNH Industrial N.V. |
| 4.50%, 08/15/23 | 100,000 | 107,585 |
| 3.85%, 11/15/27 (a) | 100,000 | 108,662 |
| Crane Co. |
| 4.45%, 12/15/23 (a) | 100,000 | 109,507 |
| Deere & Co. |
| 2.75%, 04/15/25 (a) | 150,000 | 164,178 |
| 5.38%, 10/16/29 | 362,000 | 477,896 |
| 3.10%, 04/15/30 (a) | 150,000 | 171,583 |
| 3.90%, 06/09/42 (a) | 100,000 | 128,879 |
| 2.88%, 09/07/49 (a) | 100,000 | 108,708 |
| 3.75%, 04/15/50 (a) | 100,000 | 123,704 |
| Dover Corp. |
| 3.15%, 11/15/25 (a) | 150,000 | 166,651 |
| 5.38%, 03/01/41 (a) | 100,000 | 130,443 |
| Eaton Corp. |
| 2.75%, 11/02/22 | 350,000 | 367,785 |
| 3.10%, 09/15/27 (a) | 150,000 | 167,436 |
| 4.00%, 11/02/32 | 196,000 | 237,061 |
| 4.15%, 11/02/42 | 150,000 | 187,726 |
| 3.92%, 09/15/47 (a) | 100,000 | 121,000 |
| Emerson Electric Co. |
| 2.63%, 12/01/21 (a) | 150,000 | 154,224 |
| 1.80%, 10/15/27 (a) | 150,000 | 157,896 |
| 5.25%, 11/15/39 | 100,000 | 138,883 |
| 2.75%, 10/15/50 (a) | 200,000 | 208,676 |
| Fortive Corp. |
| 2.35%, 06/15/21 (a) | 95,000 | 96,253 |
| 4.30%, 06/15/46 (a) | 180,000 | 219,328 |
| Fortune Brands Home & Security, Inc. |
| 4.00%, 09/21/23 (a) | 150,000 | 165,091 |
| 3.25%, 09/15/29 (a) | 200,000 | 223,978 |
| General Dynamics Corp. |
| 2.25%, 11/15/22 (a) | 300,000 | 311,344 |
| 3.38%, 05/15/23 (a) | 100,000 | 107,707 |
| 1.88%, 08/15/23 (a) | 250,000 | 260,420 |
| 2.38%, 11/15/24 (a) | 250,000 | 267,970 |
| 3.25%, 04/01/25 (a) | 100,000 | 111,290 |
| 3.50%, 04/01/27 (a) | 100,000 | 114,650 |
| 3.75%, 05/15/28 (a) | 400,000 | 470,488 |
| 3.63%, 04/01/30 (a) | 150,000 | 178,463 |
| 4.25%, 04/01/40 (a) | 200,000 | 253,198 |
| 4.25%, 04/01/50 (a) | 200,000 | 262,990 |
| General Electric Co. |
| 3.15%, 09/07/22 | 200,000 | 209,908 |
| 2.70%, 10/09/22 | 200,000 | 208,865 |
| 3.10%, 01/09/23 | 350,000 | 369,362 |
| 3.38%, 03/11/24 | 200,000 | 215,583 |
| 3.45%, 05/15/24 (a) | 74,000 | 79,610 |
| 5.55%, 01/05/26 | 100,000 | 116,749 |
| 3.45%, 05/01/27 (a) | 150,000 | 158,649 |
| 3.63%, 05/01/30 (a) | 200,000 | 206,401 |
| 6.75%, 03/15/32 | 450,000 | 563,335 |
| 6.15%, 08/07/37 | 200,000 | 237,127 |
| 5.88%, 01/14/38 | 470,000 | 545,327 |
| 6.88%, 01/10/39 | 350,000 | 447,352 |
| 4.25%, 05/01/40 (a) | 450,000 | 454,052 |
| 4.13%, 10/09/42 | 134,000 | 132,995 |
| 4.50%, 03/11/44 | 225,000 | 233,694 |
| 4.35%, 05/01/50 (a) | 650,000 | 661,586 |
| Hexcel Corp. |
| 3.95%, 02/15/27 (a) | 100,000 | 108,199 |
| Honeywell International, Inc. |
| 1.85%, 11/01/21 (a) | 330,000 | 335,701 |
| 0.48%, 08/19/22 (a) | 350,000 | 350,721 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 2.30%, 08/15/24 (a) | 200,000 | 213,635 |
| 1.35%, 06/01/25 (a) | 300,000 | 309,430 |
| 2.50%, 11/01/26 (a) | 300,000 | 330,679 |
| 2.70%, 08/15/29 (a) | 150,000 | 168,545 |
| 1.95%, 06/01/30 (a) | 200,000 | 211,535 |
| 5.70%, 03/15/37 | 100,000 | 144,538 |
| 3.81%, 11/21/47 (a) | 150,000 | 191,809 |
| 2.80%, 06/01/50 (a) | 150,000 | 164,225 |
| Howmet Aerospace, Inc. |
| 5.87%, 02/23/22 | 200,000 | 212,300 |
| 5.13%, 10/01/24 (a) | 200,000 | 215,010 |
| 6.88%, 05/01/25 (a) | 200,000 | 227,540 |
| 6.75%, 01/15/28 | 200,000 | 232,001 |
| 5.95%, 02/01/37 | 100,000 | 113,741 |
| Hubbell, Inc. |
| 3.50%, 02/15/28 (a) | 100,000 | 108,471 |
| Huntington Ingalls Industries, Inc. |
| 3.48%, 12/01/27 (a) | 100,000 | 109,563 |
| 4.20%, 05/01/30 (a)(c) | 100,000 | 115,042 |
| IDEX Corp. |
| 3.00%, 05/01/30 (a) | 200,000 | 219,512 |
| Illinois Tool Works, Inc. |
| 3.50%, 03/01/24 (a) | 150,000 | 164,177 |
| 2.65%, 11/15/26 (a) | 200,000 | 223,128 |
| 3.90%, 09/01/42 (a) | 300,000 | 379,035 |
| John Deere Capital Corp. |
| 3.13%, 09/10/21 | 150,000 | 154,454 |
| 2.65%, 01/06/22 | 100,000 | 103,210 |
| 2.75%, 03/15/22 | 250,000 | 259,559 |
| 2.95%, 04/01/22 | 100,000 | 104,177 |
| 0.55%, 07/05/22 | 250,000 | 251,120 |
| 2.15%, 09/08/22 | 500,000 | 519,100 |
| 2.80%, 03/06/23 | 200,000 | 212,704 |
| 3.45%, 01/10/24 | 150,000 | 164,396 |
| 2.60%, 03/07/24 | 150,000 | 160,724 |
| 3.35%, 06/12/24 | 100,000 | 110,471 |
| 2.05%, 01/09/25 | 100,000 | 106,230 |
| 2.65%, 06/10/26 | 200,000 | 221,732 |
| 1.75%, 03/09/27 | 200,000 | 209,692 |
| 3.05%, 01/06/28 | 250,000 | 280,331 |
| 3.45%, 03/07/29 | 100,000 | 116,980 |
| 2.80%, 07/18/29 | 150,000 | 168,203 |
| 2.45%, 01/09/30 | 100,000 | 109,101 |
| Johnson Controls International PLC |
| 3.63%, 07/02/24 (a) | 195,000 | 211,564 |
| 4.63%, 07/02/44 (a) | 195,000 | 237,724 |
| 5.13%, 09/14/45 (a) | 169,000 | 220,255 |
| 4.95%, 07/02/64 (a) | 100,000 | 126,510 |
| Kennametal, Inc. |
| 4.63%, 06/15/28 (a) | 100,000 | 109,196 |
| L3Harris Technologies, Inc. |
| 3.85%, 06/15/23 (a) | 100,000 | 108,692 |
| 3.83%, 04/27/25 (a) | 150,000 | 168,925 |
| 4.40%, 06/15/28 (a) | 450,000 | 539,917 |
| 2.90%, 12/15/29 (a) | 150,000 | 165,205 |
| 6.15%, 12/15/40 | 95,000 | 139,726 |
| 5.05%, 04/27/45 (a) | 100,000 | 135,218 |
| Leggett & Platt, Inc. |
| 3.80%, 11/15/24 (a) | 100,000 | 105,644 |
| 3.50%, 11/15/27 (a) | 100,000 | 105,842 |
| 4.40%, 03/15/29 (a) | 100,000 | 110,088 |
| Lennox International, Inc. |
| 1.35%, 08/01/25 (a) | 200,000 | 202,037 |
| 1.70%, 08/01/27 (a) | 150,000 | 151,334 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Lockheed Martin Corp. |
| 3.35%, 09/15/21 | 83,000 | 85,666 |
| 3.10%, 01/15/23 (a) | 250,000 | 265,061 |
| 2.90%, 03/01/25 (a) | 150,000 | 164,337 |
| 3.55%, 01/15/26 (a) | 200,000 | 228,869 |
| 3.60%, 03/01/35 (a) | 100,000 | 120,075 |
| 4.50%, 05/15/36 (a) | 150,000 | 194,980 |
| 4.07%, 12/15/42 | 200,000 | 253,713 |
| 3.80%, 03/01/45 (a) | 150,000 | 183,430 |
| 4.70%, 05/15/46 (a) | 100,000 | 137,209 |
| 2.80%, 06/15/50 (a) | 250,000 | 265,121 |
| 4.09%, 09/15/52 (a) | 538,000 | 701,918 |
| Martin Marietta Materials, Inc. |
| 4.25%, 07/02/24 (a) | 100,000 | 111,109 |
| 3.45%, 06/01/27 (a) | 50,000 | 55,567 |
| 2.50%, 03/15/30 (a) | 100,000 | 105,242 |
| 4.25%, 12/15/47 (a) | 100,000 | 113,884 |
| Masco Corp. |
| 5.95%, 03/15/22 | 100,000 | 107,901 |
| 4.45%, 04/01/25 (a) | 200,000 | 230,975 |
| 4.50%, 05/15/47 (a) | 50,000 | 55,297 |
| Mohawk Industries, Inc. |
| 3.85%, 02/01/23 (a) | 100,000 | 106,476 |
| 3.63%, 05/15/30 (a) | 160,000 | 171,894 |
| Northrop Grumman Corp. |
| 2.55%, 10/15/22 (a) | 400,000 | 418,050 |
| 2.93%, 01/15/25 (a) | 250,000 | 273,185 |
| 3.20%, 02/01/27 (a) | 100,000 | 113,154 |
| 3.25%, 01/15/28 (a) | 500,000 | 566,362 |
| 4.40%, 05/01/30 (a) | 150,000 | 185,950 |
| 5.15%, 05/01/40 (a) | 100,000 | 136,737 |
| 5.05%, 11/15/40 | 400,000 | 539,326 |
| 4.75%, 06/01/43 | 150,000 | 196,460 |
| 4.03%, 10/15/47 (a) | 500,000 | 614,740 |
| 5.25%, 05/01/50 (a) | 100,000 | 144,683 |
| nVent Finance Sarl |
| 4.55%, 04/15/28 (a) | 150,000 | 161,203 |
| Oshkosh Corp. |
| 3.10%, 03/01/30 (a) | 100,000 | 106,059 |
| Otis Worldwide Corp. |
| 2.06%, 04/05/25 (a)(c) | 200,000 | 211,430 |
| 2.29%, 04/05/27 (a)(c) | 100,000 | 106,752 |
| 2.57%, 02/15/30 (a)(c) | 250,000 | 267,554 |
| 3.11%, 02/15/40 (a)(c) | 125,000 | 134,598 |
| 3.36%, 02/15/50 (a)(c) | 125,000 | 137,839 |
| Owens Corning |
| 4.20%, 12/01/24 (a) | 150,000 | 166,214 |
| 3.95%, 08/15/29 (a) | 300,000 | 339,226 |
| 3.88%, 06/01/30 (a) | 100,000 | 112,742 |
| 4.30%, 07/15/47 (a) | 100,000 | 108,643 |
| Parker-Hannifin Corp. |
| 2.70%, 06/14/24 (a) | 150,000 | 161,063 |
| 3.30%, 11/21/24 (a) | 250,000 | 274,887 |
| 3.25%, 03/01/27 (a) | 150,000 | 166,458 |
| 3.25%, 06/14/29 (a) | 150,000 | 169,858 |
| 6.25%, 05/15/38 | 150,000 | 211,784 |
| 4.45%, 11/21/44 (a) | 100,000 | 125,755 |
| 4.10%, 03/01/47 (a) | 100,000 | 121,352 |
| 4.00%, 06/14/49 (a) | 100,000 | 122,517 |
| Pentair Finance Sarl |
| 4.50%, 07/01/29 (a) | 75,000 | 85,180 |
| Precision Castparts Corp. |
| 2.50%, 01/15/23 (a) | 250,000 | 261,742 |
| 3.25%, 06/15/25 (a) | 100,000 | 111,841 |
| 4.38%, 06/15/45 (a) | 100,000 | 125,198 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Raytheon Technologies Corp. |
| 2.80%, 03/15/22 (a)(c) | 150,000 | 155,144 |
| 2.50%, 12/15/22 (a)(c) | 150,000 | 156,212 |
| 3.70%, 12/15/23 (a)(c) | 100,000 | 109,253 |
| 3.20%, 03/15/24 (a)(c) | 200,000 | 216,270 |
| 3.95%, 08/16/25 (a) | 350,000 | 400,669 |
| 2.65%, 11/01/26 (a) | 150,000 | 166,457 |
| 3.50%, 03/15/27 (a)(c) | 150,000 | 170,116 |
| 3.13%, 05/04/27 (a) | 200,000 | 222,182 |
| 4.13%, 11/16/28 (a) | 450,000 | 536,740 |
| 7.50%, 09/15/29 | 100,000 | 147,139 |
| 2.25%, 07/01/30 (a) | 250,000 | 265,270 |
| 6.05%, 06/01/36 | 500,000 | 714,327 |
| 6.13%, 07/15/38 | 450,000 | 659,387 |
| 4.45%, 11/16/38 (a) | 200,000 | 247,608 |
| 4.88%, 10/15/40 (c) | 150,000 | 193,245 |
| 4.70%, 12/15/41 (c) | 100,000 | 126,271 |
| 4.50%, 06/01/42 | 400,000 | 509,606 |
| 4.80%, 12/15/43 (a) | 100,000 | 128,618 |
| 4.15%, 05/15/45 (a) | 100,000 | 121,466 |
| 3.75%, 11/01/46 (a) | 150,000 | 174,361 |
| 4.35%, 04/15/47 (a)(c) | 150,000 | 186,554 |
| 4.05%, 05/04/47 (a) | 100,000 | 121,584 |
| 4.63%, 11/16/48 (a) | 250,000 | 330,579 |
| 3.13%, 07/01/50 (a) | 200,000 | 215,906 |
| Republic Services, Inc. |
| 3.55%, 06/01/22 (a) | 150,000 | 157,023 |
| 4.75%, 05/15/23 (a) | 150,000 | 165,554 |
| 2.50%, 08/15/24 (a) | 300,000 | 320,685 |
| 2.90%, 07/01/26 (a) | 200,000 | 221,794 |
| 3.38%, 11/15/27 (a) | 150,000 | 170,961 |
| 3.95%, 05/15/28 (a) | 100,000 | 118,503 |
| 2.30%, 03/01/30 (a) | 300,000 | 319,539 |
| 1.45%, 02/15/31 (a) | 250,000 | 247,187 |
| 3.05%, 03/01/50 (a) | 100,000 | 107,065 |
| Rockwell Automation, Inc. |
| 3.50%, 03/01/29 (a) | 100,000 | 115,839 |
| 4.20%, 03/01/49 (a) | 100,000 | 132,843 |
| Roper Technologies, Inc. |
| 0.45%, 08/15/22 (f) | 250,000 | 250,185 |
| 3.13%, 11/15/22 (a) | 150,000 | 157,591 |
| 3.65%, 09/15/23 (a) | 100,000 | 109,022 |
| 1.00%, 09/15/25 (a)(f) | 250,000 | 251,921 |
| 3.85%, 12/15/25 (a) | 250,000 | 285,546 |
| 3.80%, 12/15/26 (a) | 150,000 | 173,923 |
| 1.40%, 09/15/27 (a)(f) | 250,000 | 253,435 |
| 2.95%, 09/15/29 (a) | 100,000 | 110,307 |
| 2.00%, 06/30/30 (a) | 250,000 | 256,672 |
| 1.75%, 02/15/31 (a)(f) | 250,000 | 251,479 |
| Snap-on, Inc. |
| 4.10%, 03/01/48 (a) | 100,000 | 122,858 |
| 3.10%, 05/01/50 (a) | 200,000 | 212,688 |
| Sonoco Products Co. |
| 3.13%, 05/01/30 (a) | 400,000 | 439,002 |
| 5.75%, 11/01/40 (a) | 150,000 | 194,276 |
| Stanley Black & Decker, Inc. |
| 2.90%, 11/01/22 | 250,000 | 263,534 |
| 4.25%, 11/15/28 (a) | 250,000 | 303,237 |
| 2.30%, 03/15/30 (a) | 200,000 | 214,666 |
| 5.20%, 09/01/40 | 100,000 | 137,263 |
| 4.85%, 11/15/48 (a) | 150,000 | 210,897 |
| 4.00%, 03/15/60 (a)(b) | 100,000 | 105,433 |
| Textron, Inc. |
| 4.00%, 03/15/26 (a) | 100,000 | 110,105 |
| 3.38%, 03/01/28 (a) | 200,000 | 213,064 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.00%, 06/01/30 (a) | 100,000 | 105,038 |
| 2.45%, 03/15/31 (a) | 250,000 | 248,119 |
| The Boeing Co. |
| 2.30%, 08/01/21 | 150,000 | 151,168 |
| 2.13%, 03/01/22 (a) | 150,000 | 150,946 |
| 2.80%, 03/01/23 (a) | 250,000 | 255,329 |
| 4.51%, 05/01/23 (a) | 820,000 | 865,854 |
| 4.88%, 05/01/25 (a) | 600,000 | 653,529 |
| 2.60%, 10/30/25 (a) | 50,000 | 49,988 |
| 3.10%, 05/01/26 (a) | 100,000 | 100,178 |
| 2.25%, 06/15/26 (a) | 50,000 | 49,330 |
| 2.80%, 03/01/27 (a) | 300,000 | 295,198 |
| 5.04%, 05/01/27 (a) | 450,000 | 496,372 |
| 3.45%, 11/01/28 (a) | 150,000 | 150,607 |
| 3.20%, 03/01/29 (a) | 150,000 | 148,792 |
| 2.95%, 02/01/30 (a) | 150,000 | 147,075 |
| 5.15%, 05/01/30 (a) | 800,000 | 897,800 |
| 3.60%, 05/01/34 (a) | 100,000 | 97,480 |
| 3.25%, 02/01/35 (a) | 150,000 | 138,236 |
| 3.50%, 03/01/39 (a) | 150,000 | 135,571 |
| 6.88%, 03/15/39 | 30,000 | 37,416 |
| 5.88%, 02/15/40 | 100,000 | 113,859 |
| 5.71%, 05/01/40 (a) | 600,000 | 694,650 |
| 3.65%, 03/01/47 (a) | 150,000 | 131,566 |
| 3.63%, 03/01/48 (a) | 50,000 | 43,999 |
| 3.85%, 11/01/48 (a) | 100,000 | 89,669 |
| 3.90%, 05/01/49 (a) | 100,000 | 93,154 |
| 3.75%, 02/01/50 (a) | 175,000 | 157,695 |
| 5.81%, 05/01/50 (a) | 1,000,000 | 1,202,175 |
| 3.83%, 03/01/59 (a) | 150,000 | 128,900 |
| 3.95%, 08/01/59 (a) | 150,000 | 138,991 |
| 5.93%, 05/01/60 (a) | 650,000 | 799,373 |
| The Timken Co. |
| 4.50%, 12/15/28 (a) | 100,000 | 108,760 |
| Trane Technologies Global Holding Co., Ltd. |
| 4.25%, 06/15/23 | 150,000 | 166,115 |
| 3.75%, 08/21/28 (a) | 100,000 | 115,005 |
| 5.75%, 06/15/43 | 100,000 | 139,517 |
| 4.30%, 02/21/48 (a) | 150,000 | 180,910 |
| Trane Technologies Luxembourg Finance S.A. |
| 3.55%, 11/01/24 (a) | 150,000 | 165,997 |
| 3.80%, 03/21/29 (a) | 100,000 | 117,375 |
| Valmont Industries, Inc. |
| 5.00%, 10/01/44 (a) | 100,000 | 110,873 |
| Vulcan Materials Co. |
| 3.90%, 04/01/27 (a) | 100,000 | 112,665 |
| 3.50%, 06/01/30 (a) | 200,000 | 227,222 |
| 4.50%, 06/15/47 (a) | 150,000 | 176,516 |
| 4.70%, 03/01/48 (a) | 100,000 | 120,767 |
| Waste Connections, Inc. |
| 4.25%, 12/01/28 (a) | 100,000 | 120,667 |
| 3.50%, 05/01/29 (a) | 100,000 | 114,557 |
| 2.60%, 02/01/30 (a) | 150,000 | 162,180 |
| Waste Management, Inc. |
| 2.90%, 09/15/22 (a) | 150,000 | 156,724 |
| 3.13%, 03/01/25 (a) | 500,000 | 549,852 |
| 3.15%, 11/15/27 (a) | 200,000 | 223,415 |
| 3.90%, 03/01/35 (a) | 100,000 | 119,625 |
| 4.10%, 03/01/45 (a) | 262,000 | 321,951 |
| 4.15%, 07/15/49 (a) | 100,000 | 126,331 |
| Westinghouse Air Brake Technologies Corp. |
| 4.40%, 03/15/24 (a)(g)(h) | 100,000 | 109,319 |
| 3.20%, 06/15/25 (a) | 200,000 | 211,564 |
| 4.95%, 09/15/28 (a)(g)(h) | 250,000 | 289,110 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| WW Grainger, Inc. |
| 4.60%, 06/15/45 (a) | 100,000 | 129,881 |
| 4.20%, 05/15/47 (a) | 200,000 | 249,277 |
| Xylem, Inc. |
| 4.88%, 10/01/21 | 350,000 | 366,175 |
| 3.25%, 11/01/26 (a) | 200,000 | 224,805 |
| 1.95%, 01/30/28 (a) | 200,000 | 209,288 |
| 2.25%, 01/30/31 (a) | 250,000 | 264,912 |
| | | 73,178,453 |
| Communications 2.5% |
| Activision Blizzard, Inc. |
| 2.60%, 06/15/22 (a) | 200,000 | 207,896 |
| 3.40%, 09/15/26 (a) | 150,000 | 171,711 |
| 1.35%, 09/15/30 (a) | 250,000 | 245,115 |
| 4.50%, 06/15/47 (a) | 100,000 | 129,630 |
| 2.50%, 09/15/50 (a) | 250,000 | 235,010 |
| America Movil, S.A.B. de CV |
| 3.13%, 07/16/22 | 200,000 | 208,556 |
| 3.63%, 04/22/29 (a) | 200,000 | 227,390 |
| 2.88%, 05/07/30 (a) | 200,000 | 216,455 |
| 6.38%, 03/01/35 | 200,000 | 293,240 |
| 6.13%, 03/30/40 | 430,000 | 628,361 |
| 4.38%, 07/16/42 | 200,000 | 247,791 |
| 4.38%, 04/22/49 (a) | 200,000 | 250,365 |
| American Tower Corp. |
| 4.70%, 03/15/22 | 200,000 | 212,853 |
| 3.50%, 01/31/23 | 100,000 | 107,011 |
| 3.00%, 06/15/23 | 150,000 | 160,028 |
| 5.00%, 02/15/24 | 350,000 | 399,759 |
| 3.38%, 05/15/24 (a) | 100,000 | 109,189 |
| 2.95%, 01/15/25 (a) | 150,000 | 163,172 |
| 2.40%, 03/15/25 (a) | 250,000 | 266,577 |
| 4.00%, 06/01/25 (a) | 150,000 | 170,424 |
| 3.38%, 10/15/26 (a) | 150,000 | 168,860 |
| 2.75%, 01/15/27 (a) | 150,000 | 163,514 |
| 3.13%, 01/15/27 (a) | 130,000 | 143,463 |
| 3.55%, 07/15/27 (a) | 200,000 | 225,525 |
| 3.60%, 01/15/28 (a) | 100,000 | 113,080 |
| 3.95%, 03/15/29 (a) | 100,000 | 116,292 |
| 3.80%, 08/15/29 (a) | 250,000 | 289,800 |
| 2.90%, 01/15/30 (a) | 150,000 | 163,635 |
| 3.70%, 10/15/49 (a) | 100,000 | 113,510 |
| 3.10%, 06/15/50 (a) | 250,000 | 259,320 |
| AT&T, Inc. |
| 3.00%, 06/30/22 (a) | 600,000 | 626,103 |
| 2.63%, 12/01/22 (a) | 250,000 | 261,308 |
| 4.05%, 12/15/23 | 200,000 | 222,809 |
| 4.45%, 04/01/24 (a) | 150,000 | 168,460 |
| 3.95%, 01/15/25 (a) | 300,000 | 338,055 |
| 3.40%, 05/15/25 (a) | 980,000 | 1,089,441 |
| 3.60%, 07/15/25 (a) | 200,000 | 224,294 |
| 3.88%, 01/15/26 (a) | 400,000 | 456,414 |
| 4.13%, 02/17/26 (a) | 550,000 | 635,704 |
| 2.95%, 07/15/26 (a) | 100,000 | 110,285 |
| 3.80%, 02/15/27 (a) | 150,000 | 171,324 |
| 4.25%, 03/01/27 (a) | 200,000 | 234,316 |
| 2.30%, 06/01/27 (a) | 500,000 | 531,895 |
| 1.65%, 02/01/28 (a) | 300,000 | 304,359 |
| 4.10%, 02/15/28 (a) | 327,000 | 381,261 |
| 4.35%, 03/01/29 (a) | 600,000 | 714,090 |
| 4.30%, 02/15/30 (a) | 547,000 | 654,163 |
| 2.75%, 06/01/31 (a) | 500,000 | 533,035 |
| 2.25%, 02/01/32 (a) | 550,000 | 557,733 |
| 6.15%, 09/15/34 | 200,000 | 276,921 |
| 4.50%, 05/15/35 (a) | 550,000 | 658,551 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 5.25%, 03/01/37 (a) | 500,000 | 633,085 |
| 4.90%, 08/15/37 (a) | 250,000 | 310,885 |
| 6.30%, 01/15/38 | 100,000 | 140,471 |
| 6.55%, 02/15/39 | 100,000 | 139,836 |
| 4.85%, 03/01/39 (a) | 350,000 | 428,626 |
| 6.35%, 03/15/40 | 100,000 | 139,071 |
| 6.10%, 07/15/40 | 150,000 | 200,330 |
| 6.00%, 08/15/40 (a) | 250,000 | 338,295 |
| 5.35%, 09/01/40 | 400,000 | 516,162 |
| 6.38%, 03/01/41 | 200,000 | 284,186 |
| 3.50%, 06/01/41 (a) | 550,000 | 584,281 |
| 5.55%, 08/15/41 | 150,000 | 194,024 |
| 5.38%, 10/15/41 | 100,000 | 125,679 |
| 5.15%, 03/15/42 | 200,000 | 251,596 |
| 4.90%, 06/15/42 | 150,000 | 183,206 |
| 4.30%, 12/15/42 (a) | 400,000 | 459,218 |
| 3.10%, 02/01/43 (a) | 350,000 | 349,295 |
| 5.35%, 12/15/43 | 100,000 | 127,411 |
| 4.65%, 06/01/44 (a) | 150,000 | 174,578 |
| 4.80%, 06/15/44 (a) | 400,000 | 484,962 |
| 4.35%, 06/15/45 (a) | 600,000 | 692,280 |
| 4.85%, 07/15/45 (a) | 100,000 | 120,376 |
| 4.75%, 05/15/46 (a) | 500,000 | 601,752 |
| 5.15%, 11/15/46 (a) | 250,000 | 314,595 |
| 5.65%, 02/15/47 (a) | 300,000 | 395,896 |
| 5.45%, 03/01/47 (a) | 350,000 | 460,766 |
| 4.50%, 03/09/48 (a) | 874,000 | 1,030,494 |
| 4.55%, 03/09/49 (a) | 400,000 | 474,850 |
| 5.15%, 02/15/50 (a) | 400,000 | 514,712 |
| 3.65%, 06/01/51 (a) | 500,000 | 529,102 |
| 3.30%, 02/01/52 (a) | 550,000 | 546,326 |
| 5.70%, 03/01/57 (a) | 300,000 | 413,404 |
| 5.30%, 08/15/58 (a) | 100,000 | 131,906 |
| 3.85%, 06/01/60 (a) | 300,000 | 321,196 |
| 3.50%, 02/01/61 (a) | 350,000 | 348,976 |
| Bell Canada, Inc. |
| 4.46%, 04/01/48 (a) | 150,000 | 192,791 |
| 4.30%, 07/29/49 (a) | 100,000 | 125,945 |
| British Telecommunications PLC |
| 4.50%, 12/04/23 (a) | 200,000 | 222,643 |
| 5.13%, 12/04/28 (a) | 250,000 | 309,084 |
| 9.63%, 12/15/30 (g)(h) | 300,000 | 489,784 |
| CC Holdings GS V LLC/Crown Castle GS III Corp. |
| 3.85%, 04/15/23 | 200,000 | 216,285 |
| Charter Communications Operating LLC/Charter Communications Operating Capital |
| 4.46%, 07/23/22 (a) | 500,000 | 532,932 |
| 4.50%, 02/01/24 (a) | 250,000 | 279,182 |
| 4.91%, 07/23/25 (a) | 1,000,000 | 1,165,350 |
| 3.75%, 02/15/28 (a) | 200,000 | 223,491 |
| 4.20%, 03/15/28 (a) | 200,000 | 229,374 |
| 5.05%, 03/30/29 (a) | 200,000 | 242,703 |
| 2.80%, 04/01/31 (a) | 350,000 | 369,619 |
| 6.38%, 10/23/35 (a) | 330,000 | 458,048 |
| 5.38%, 04/01/38 (a) | 150,000 | 182,855 |
| 6.48%, 10/23/45 (a) | 850,000 | 1,143,267 |
| 5.38%, 05/01/47 (a) | 450,000 | 545,188 |
| 5.75%, 04/01/48 (a) | 500,000 | 627,877 |
| 5.13%, 07/01/49 (a) | 200,000 | 235,133 |
| 4.80%, 03/01/50 (a) | 400,000 | 457,912 |
| 3.70%, 04/01/51 (a) | 300,000 | 300,009 |
| 6.83%, 10/23/55 (a) | 100,000 | 139,193 |
| Comcast Cable Communications Holdings, Inc. |
| 9.46%, 11/15/22 | 200,000 | 240,094 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Comcast Corp. |
| 3.13%, 07/15/22 | 250,000 | 262,675 |
| 2.85%, 01/15/23 | 250,000 | 265,055 |
| 2.75%, 03/01/23 (a) | 250,000 | 264,422 |
| 3.00%, 02/01/24 (a) | 300,000 | 324,487 |
| 3.60%, 03/01/24 | 100,000 | 110,507 |
| 3.70%, 04/15/24 (a) | 400,000 | 444,366 |
| 3.38%, 02/15/25 (a) | 200,000 | 222,572 |
| 3.10%, 04/01/25 (a) | 100,000 | 110,814 |
| 3.38%, 08/15/25 (a) | 150,000 | 168,303 |
| 3.95%, 10/15/25 (a) | 650,000 | 751,127 |
| 3.15%, 03/01/26 (a) | 150,000 | 168,444 |
| 3.30%, 02/01/27 (a) | 300,000 | 339,883 |
| 3.30%, 04/01/27 (a) | 200,000 | 227,788 |
| 3.15%, 02/15/28 (a) | 350,000 | 397,635 |
| 3.55%, 05/01/28 (a) | 200,000 | 232,617 |
| 4.15%, 10/15/28 (a) | 950,000 | 1,151,091 |
| 2.65%, 02/01/30 (a) | 300,000 | 328,201 |
| 3.40%, 04/01/30 (a) | 250,000 | 289,126 |
| 4.25%, 10/15/30 (a) | 250,000 | 310,264 |
| 1.95%, 01/15/31 (a) | 300,000 | 309,790 |
| 1.50%, 02/15/31 (a) | 400,000 | 398,412 |
| 4.25%, 01/15/33 | 250,000 | 312,856 |
| 7.05%, 03/15/33 | 350,000 | 541,495 |
| 4.20%, 08/15/34 (a) | 250,000 | 313,984 |
| 5.65%, 06/15/35 | 100,000 | 143,313 |
| 4.40%, 08/15/35 (a) | 150,000 | 192,407 |
| 6.50%, 11/15/35 | 95,000 | 146,050 |
| 3.20%, 07/15/36 (a) | 100,000 | 112,661 |
| 6.45%, 03/15/37 | 100,000 | 152,296 |
| 6.95%, 08/15/37 | 150,000 | 237,526 |
| 3.90%, 03/01/38 (a) | 250,000 | 301,562 |
| 6.40%, 05/15/38 | 100,000 | 152,737 |
| 4.60%, 10/15/38 (a) | 500,000 | 644,422 |
| 6.55%, 07/01/39 | 100,000 | 157,036 |
| 3.25%, 11/01/39 (a) | 200,000 | 222,435 |
| 6.40%, 03/01/40 | 150,000 | 231,736 |
| 3.75%, 04/01/40 (a) | 500,000 | 593,467 |
| 4.65%, 07/15/42 | 250,000 | 326,254 |
| 4.50%, 01/15/43 | 100,000 | 128,717 |
| 4.75%, 03/01/44 | 300,000 | 399,004 |
| 4.60%, 08/15/45 (a) | 300,000 | 394,224 |
| 3.40%, 07/15/46 (a) | 200,000 | 222,986 |
| 4.00%, 08/15/47 (a) | 100,000 | 122,376 |
| 3.97%, 11/01/47 (a) | 300,000 | 363,738 |
| 4.00%, 03/01/48 (a) | 200,000 | 243,857 |
| 4.70%, 10/15/48 (a) | 760,000 | 1,023,921 |
| 4.00%, 11/01/49 (a) | 400,000 | 487,168 |
| 3.45%, 02/01/50 (a) | 400,000 | 453,242 |
| 2.80%, 01/15/51 (a) | 400,000 | 405,516 |
| 2.45%, 08/15/52 (a) | 400,000 | 383,562 |
| 4.05%, 11/01/52 (a) | 250,000 | 307,804 |
| 4.95%, 10/15/58 (a) | 350,000 | 508,487 |
| 2.65%, 08/15/62 (a) | 400,000 | 386,938 |
| Crown Castle International Corp. |
| 5.25%, 01/15/23 | 350,000 | 388,068 |
| 3.15%, 07/15/23 (a) | 150,000 | 160,401 |
| 1.35%, 07/15/25 (a) | 200,000 | 203,653 |
| 4.45%, 02/15/26 (a) | 195,000 | 226,561 |
| 3.70%, 06/15/26 (a) | 100,000 | 112,979 |
| 3.80%, 02/15/28 (a) | 150,000 | 171,577 |
| 4.30%, 02/15/29 (a) | 100,000 | 118,302 |
| 3.10%, 11/15/29 (a) | 200,000 | 220,080 |
| 3.30%, 07/01/30 (a) | 200,000 | 223,068 |
| 4.75%, 05/15/47 (a) | 200,000 | 255,237 |
| 5.20%, 02/15/49 (a) | 150,000 | 203,862 |
| 4.15%, 07/01/50 (a) | 150,000 | 179,810 |
| 3.25%, 01/15/51 (a) | 200,000 | 208,310 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Deutsche Telekom International Finance BV |
| 8.75%, 06/15/30 (g)(h) | 750,000 | 1,182,142 |
| 9.25%, 06/01/32 | 150,000 | 252,969 |
| Discovery Communications LLC |
| 3.80%, 03/13/24 (a) | 250,000 | 273,770 |
| 4.90%, 03/11/26 (a) | 100,000 | 117,633 |
| 3.95%, 03/20/28 (a) | 250,000 | 285,094 |
| 4.13%, 05/15/29 (a) | 300,000 | 344,559 |
| 3.63%, 05/15/30 (a) | 250,000 | 276,866 |
| 5.00%, 09/20/37 (a) | 300,000 | 357,837 |
| 6.35%, 06/01/40 | 200,000 | 270,136 |
| 4.88%, 04/01/43 | 150,000 | 171,712 |
| 5.20%, 09/20/47 (a) | 260,000 | 312,408 |
| 5.30%, 05/15/49 (a) | 150,000 | 184,946 |
| 4.65%, 05/15/50 (a) | 200,000 | 228,912 |
| Fox Corp. |
| 3.67%, 01/25/22 | 150,000 | 156,780 |
| 4.03%, 01/25/24 (a) | 250,000 | 276,402 |
| 3.05%, 04/07/25 (a) | 100,000 | 109,734 |
| 4.71%, 01/25/29 (a) | 300,000 | 361,482 |
| 5.48%, 01/25/39 (a) | 300,000 | 399,162 |
| 5.58%, 01/25/49 (a) | 250,000 | 343,554 |
| Grupo Televisa S.A.B. |
| 6.63%, 03/18/25 | 200,000 | 241,475 |
| 6.63%, 01/15/40 | 200,000 | 266,467 |
| 5.00%, 05/13/45 (a) | 300,000 | 340,992 |
| 5.25%, 05/24/49 (a) | 200,000 | 238,761 |
| Koninklijke KPN N.V. |
| 8.38%, 10/01/30 | 100,000 | 146,897 |
| Moody's Corp. |
| 2.75%, 12/15/21 (a) | 250,000 | 257,470 |
| 4.50%, 09/01/22 (a) | 150,000 | 161,037 |
| 2.63%, 01/15/23 (a) | 150,000 | 157,424 |
| 3.75%, 03/24/25 (a) | 200,000 | 226,787 |
| 4.25%, 02/01/29 (a) | 150,000 | 180,221 |
| 4.88%, 12/17/48 (a) | 150,000 | 203,014 |
| 2.55%, 08/18/60 (a) | 250,000 | 236,033 |
| NBCUniversal Media LLC |
| 2.88%, 01/15/23 | 200,000 | 211,918 |
| 6.40%, 04/30/40 | 100,000 | 154,626 |
| 5.95%, 04/01/41 | 100,000 | 149,247 |
| 4.45%, 01/15/43 | 230,000 | 296,364 |
| Omnicom Group, Inc. |
| 2.45%, 04/30/30 (a) | 100,000 | 103,605 |
| 4.20%, 06/01/30 (a) | 100,000 | 116,924 |
| Omnicom Group, Inc./Omnicom Capital, Inc. |
| 3.63%, 05/01/22 | 250,000 | 262,897 |
| 3.65%, 11/01/24 (a) | 130,000 | 144,185 |
| 3.60%, 04/15/26 (a) | 250,000 | 282,016 |
| Orange S.A. |
| 9.00%, 03/01/31 (d) | 400,000 | 657,660 |
| 5.38%, 01/13/42 | 150,000 | 212,692 |
| 5.50%, 02/06/44 (a) | 150,000 | 220,169 |
| RELX Capital, Inc. |
| 3.50%, 03/16/23 (a) | 100,000 | 106,985 |
| 4.00%, 03/18/29 (a) | 150,000 | 177,401 |
| 3.00%, 05/22/30 (a) | 250,000 | 275,229 |
| Rogers Communications, Inc. |
| 3.00%, 03/15/23 (a) | 150,000 | 159,138 |
| 4.10%, 10/01/23 (a) | 150,000 | 165,593 |
| 3.63%, 12/15/25 (a) | 100,000 | 113,990 |
| 2.90%, 11/15/26 (a) | 150,000 | 167,216 |
| 4.50%, 03/15/43 (a) | 100,000 | 123,210 |
| 5.45%, 10/01/43 (a) | 200,000 | 280,627 |
| 5.00%, 03/15/44 (a) | 330,000 | 435,836 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 4.30%, 02/15/48 (a) | 100,000 | 123,937 |
| 4.35%, 05/01/49 (a) | 150,000 | 188,189 |
| 3.70%, 11/15/49 (a) | 150,000 | 172,088 |
| S&P Global, Inc. |
| 4.00%, 06/15/25 (a) | 300,000 | 343,927 |
| 2.50%, 12/01/29 (a) | 100,000 | 109,123 |
| 1.25%, 08/15/30 (a) | 250,000 | 247,539 |
| 3.25%, 12/01/49 (a) | 100,000 | 117,170 |
| 2.30%, 08/15/60 (a) | 250,000 | 231,683 |
| T-Mobile USA, Inc. |
| 3.50%, 04/15/25 (a)(c) | 500,000 | 553,042 |
| 1.50%, 02/15/26 (a) | 250,000 | 253,720 |
| 3.75%, 04/15/27 (a)(c) | 750,000 | 849,386 |
| 2.05%, 02/15/28 (a) | 250,000 | 257,349 |
| 3.88%, 04/15/30 (a)(c) | 1,300,000 | 1,491,373 |
| 2.55%, 02/15/31 (a)(c) | 400,000 | 418,648 |
| 4.38%, 04/15/40 (a)(c) | 350,000 | 422,571 |
| 4.50%, 04/15/50 (a)(c) | 500,000 | 611,912 |
| TCI Communications, Inc. |
| 7.13%, 02/15/28 | 230,000 | 320,960 |
| Telefonica Emisiones S.A. |
| 4.57%, 04/27/23 | 150,000 | 165,134 |
| 4.10%, 03/08/27 | 450,000 | 518,125 |
| 7.05%, 06/20/36 | 365,000 | 530,991 |
| 4.67%, 03/06/38 | 150,000 | 176,086 |
| 5.21%, 03/08/47 | 500,000 | 604,107 |
| 4.90%, 03/06/48 | 300,000 | 357,355 |
| 5.52%, 03/01/49 (a) | 150,000 | 189,560 |
| Telefonica Europe BV |
| 8.25%, 09/15/30 | 100,000 | 152,665 |
| TELUS Corp. |
| 3.70%, 09/15/27 (a) | 200,000 | 226,063 |
| 4.30%, 06/15/49 (a) | 150,000 | 183,242 |
| The Interpublic Group of Cos., Inc. |
| 4.20%, 04/15/24 | 350,000 | 388,558 |
| 4.75%, 03/30/30 (a) | 150,000 | 181,267 |
| 5.40%, 10/01/48 (a) | 100,000 | 118,826 |
| The Walt Disney Co. |
| 1.65%, 09/01/22 | 200,000 | 204,936 |
| 3.00%, 09/15/22 | 150,000 | 157,907 |
| 1.75%, 08/30/24 (a) | 150,000 | 156,389 |
| 3.70%, 09/15/24 (a) | 300,000 | 333,796 |
| 3.35%, 03/24/25 | 250,000 | 279,184 |
| 3.70%, 10/15/25 (a) | 200,000 | 227,978 |
| 1.75%, 01/13/26 | 300,000 | 313,293 |
| 3.70%, 03/23/27 | 250,000 | 289,624 |
| 2.20%, 01/13/28 | 200,000 | 212,113 |
| 2.00%, 09/01/29 (a) | 350,000 | 362,556 |
| 3.80%, 03/22/30 | 200,000 | 237,429 |
| 2.65%, 01/13/31 | 500,000 | 542,765 |
| 6.55%, 03/15/33 | 300,000 | 437,728 |
| 6.20%, 12/15/34 | 150,000 | 222,244 |
| 6.40%, 12/15/35 | 230,000 | 347,738 |
| 6.15%, 03/01/37 | 150,000 | 212,346 |
| 4.63%, 03/23/40 (a) | 100,000 | 127,432 |
| 3.50%, 05/13/40 (a) | 500,000 | 564,357 |
| 4.13%, 12/01/41 | 150,000 | 180,458 |
| 4.75%, 09/15/44 (a) | 150,000 | 194,012 |
| 4.95%, 10/15/45 (a) | 200,000 | 266,187 |
| 4.75%, 11/15/46 (a) | 100,000 | 128,854 |
| 2.75%, 09/01/49 (a) | 350,000 | 347,196 |
| 4.70%, 03/23/50 (a) | 300,000 | 400,555 |
| 3.60%, 01/13/51 (a) | 500,000 | 572,575 |
| 3.80%, 05/13/60 (a) | 300,000 | 355,335 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Thomson Reuters Corp. |
| 4.30%, 11/23/23 (a) | 150,000 | 165,209 |
| 5.65%, 11/23/43 (a) | 150,000 | 199,923 |
| Time Warner Cable LLC |
| 6.55%, 05/01/37 | 200,000 | 269,299 |
| 7.30%, 07/01/38 | 300,000 | 432,229 |
| 6.75%, 06/15/39 | 250,000 | 348,261 |
| 5.88%, 11/15/40 (a) | 324,000 | 412,282 |
| 5.50%, 09/01/41 (a) | 250,000 | 308,301 |
| 4.50%, 09/15/42 (a) | 200,000 | 224,022 |
| Time Warner Entertainment Co. LP |
| 8.38%, 03/15/23 | 107,000 | 127,214 |
| 8.38%, 07/15/33 | 200,000 | 310,403 |
| TWDC Enterprises 18 Corp. |
| 3.75%, 06/01/21 | 150,000 | 154,071 |
| 2.35%, 12/01/22 | 200,000 | 208,728 |
| 3.00%, 02/13/26 | 350,000 | 390,322 |
| 1.85%, 07/30/26 | 150,000 | 157,896 |
| 2.95%, 06/15/27 | 200,000 | 222,187 |
| 4.13%, 06/01/44 | 250,000 | 306,207 |
| 3.00%, 07/30/46 | 100,000 | 104,534 |
| Verizon Communications, Inc. |
| 2.95%, 03/15/22 | 300,000 | 312,172 |
| 2.45%, 11/01/22 (a) | 200,000 | 208,409 |
| 5.15%, 09/15/23 | 530,000 | 604,049 |
| 4.15%, 03/15/24 (a) | 330,000 | 369,272 |
| 3.50%, 11/01/24 (a) | 330,000 | 367,270 |
| 3.38%, 02/15/25 | 500,000 | 559,710 |
| 2.63%, 08/15/26 | 300,000 | 330,990 |
| 4.13%, 03/16/27 | 500,000 | 592,077 |
| 3.00%, 03/22/27 (a) | 150,000 | 167,833 |
| 4.33%, 09/21/28 | 700,000 | 848,452 |
| 3.88%, 02/08/29 (a) | 200,000 | 236,941 |
| 4.02%, 12/03/29 (a) | 800,000 | 961,552 |
| 3.15%, 03/22/30 (a) | 250,000 | 283,189 |
| 7.75%, 12/01/30 | 52,000 | 81,017 |
| 4.50%, 08/10/33 | 650,000 | 825,315 |
| 4.40%, 11/01/34 (a) | 630,000 | 790,811 |
| 4.27%, 01/15/36 | 505,000 | 620,362 |
| 5.25%, 03/16/37 | 400,000 | 542,762 |
| 4.81%, 03/15/39 | 150,000 | 198,628 |
| 4.75%, 11/01/41 | 274,000 | 367,004 |
| 3.85%, 11/01/42 (a) | 200,000 | 238,857 |
| 6.55%, 09/15/43 | 100,000 | 161,742 |
| 4.13%, 08/15/46 | 200,000 | 247,665 |
| 4.86%, 08/21/46 | 800,000 | 1,085,152 |
| 5.50%, 03/16/47 | 300,000 | 441,949 |
| 4.52%, 09/15/48 | 850,000 | 1,120,712 |
| 5.01%, 04/15/49 | 450,000 | 631,996 |
| 4.00%, 03/22/50 (a) | 150,000 | 188,664 |
| 5.01%, 08/21/54 | 250,000 | 363,431 |
| 4.67%, 03/15/55 | 500,000 | 686,750 |
| ViacomCBS, Inc. |
| 3.38%, 03/01/22 (a) | 150,000 | 155,055 |
| 4.25%, 09/01/23 (a) | 263,000 | 287,881 |
| 3.88%, 04/01/24 (a) | 150,000 | 163,826 |
| 3.70%, 08/15/24 (a) | 250,000 | 274,544 |
| 3.50%, 01/15/25 (a) | 330,000 | 365,468 |
| 4.75%, 05/15/25 (a) | 200,000 | 231,018 |
| 2.90%, 01/15/27 (a) | 150,000 | 162,461 |
| 4.20%, 06/01/29 (a) | 150,000 | 172,529 |
| 7.88%, 07/30/30 | 50,000 | 72,297 |
| 4.95%, 01/15/31 (a) | 200,000 | 239,178 |
| 4.20%, 05/19/32 (a) | 300,000 | 341,937 |
| 6.88%, 04/30/36 | 250,000 | 342,391 |
| 4.38%, 03/15/43 | 250,000 | 267,094 |
| 5.85%, 09/01/43 (a) | 250,000 | 309,656 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 5.25%, 04/01/44 (a) | 100,000 | 117,129 |
| 4.90%, 08/15/44 (a) | 195,000 | 220,600 |
| 4.60%, 01/15/45 (a) | 130,000 | 143,876 |
| 4.95%, 05/19/50 (a) | 200,000 | 234,058 |
| Vodafone Group PLC |
| 2.50%, 09/26/22 | 250,000 | 260,185 |
| 3.75%, 01/16/24 | 300,000 | 329,242 |
| 4.13%, 05/30/25 | 250,000 | 287,314 |
| 4.38%, 05/30/28 | 750,000 | 897,379 |
| 7.88%, 02/15/30 | 150,000 | 219,095 |
| 6.15%, 02/27/37 | 400,000 | 566,766 |
| 5.00%, 05/30/38 | 250,000 | 315,976 |
| 4.38%, 02/19/43 | 150,000 | 175,971 |
| 5.25%, 05/30/48 | 600,000 | 789,393 |
| 4.88%, 06/19/49 | 350,000 | 438,781 |
| 4.25%, 09/17/50 | 250,000 | 294,009 |
| 5.13%, 06/19/59 | 100,000 | 127,387 |
| Weibo Corp. |
| 3.50%, 07/05/24 (a) | 200,000 | 212,079 |
| 3.38%, 07/08/30 (a) | 200,000 | 209,557 |
| WPP Finance 2010 |
| 3.63%, 09/07/22 | 100,000 | 105,111 |
| 3.75%, 09/19/24 | 100,000 | 109,803 |
| | | 117,586,558 |
| Consumer Cyclical 2.0% |
| Advance Auto Parts, Inc. |
| 4.50%, 01/15/22 (a) | 150,000 | 156,441 |
| 3.90%, 04/15/30 (a) | 100,000 | 110,919 |
| Alibaba Group Holding Ltd. |
| 3.13%, 11/28/21 (a) | 200,000 | 205,417 |
| 2.80%, 06/06/23 (a) | 150,000 | 158,876 |
| 3.60%, 11/28/24 (a) | 400,000 | 441,606 |
| 3.40%, 12/06/27 (a) | 500,000 | 565,787 |
| 4.50%, 11/28/34 (a) | 250,000 | 316,629 |
| 4.00%, 12/06/37 (a) | 200,000 | 238,093 |
| 4.20%, 12/06/47 (a) | 200,000 | 258,693 |
| 4.40%, 12/06/57 (a) | 200,000 | 273,108 |
| Amazon.com, Inc. |
| 2.50%, 11/29/22 (a) | 230,000 | 240,306 |
| 2.40%, 02/22/23 (a) | 200,000 | 210,150 |
| 2.80%, 08/22/24 (a) | 250,000 | 272,287 |
| 3.80%, 12/05/24 (a) | 195,000 | 220,851 |
| 0.80%, 06/03/25 (a) | 150,000 | 152,120 |
| 5.20%, 12/03/25 (a) | 100,000 | 122,909 |
| 1.20%, 06/03/27 (a) | 300,000 | 306,096 |
| 3.15%, 08/22/27 (a) | 650,000 | 744,549 |
| 1.50%, 06/03/30 (a) | 450,000 | 460,908 |
| 4.80%, 12/05/34 (a) | 150,000 | 207,302 |
| 3.88%, 08/22/37 (a) | 600,000 | 752,655 |
| 4.95%, 12/05/44 (a) | 230,000 | 331,206 |
| 4.05%, 08/22/47 (a) | 750,000 | 976,215 |
| 2.50%, 06/03/50 (a) | 550,000 | 559,936 |
| 4.25%, 08/22/57 (a) | 400,000 | 545,536 |
| 2.70%, 06/03/60 (a) | 400,000 | 413,176 |
| American Honda Finance Corp. |
| 1.70%, 09/09/21 | 150,000 | 152,011 |
| 2.20%, 06/27/22 | 200,000 | 206,377 |
| 2.05%, 01/10/23 | 150,000 | 155,519 |
| 1.95%, 05/10/23 | 200,000 | 207,423 |
| 0.88%, 07/07/23 | 250,000 | 252,211 |
| 2.90%, 02/16/24 | 390,000 | 418,712 |
| 2.40%, 06/27/24 | 300,000 | 318,189 |
| 1.20%, 07/08/25 | 250,000 | 252,631 |
| 2.30%, 09/09/26 | 300,000 | 321,462 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 2.35%, 01/08/27 | 50,000 | 53,525 |
| 3.50%, 02/15/28 | 100,000 | 115,716 |
| Aptiv Corp. |
| 4.15%, 03/15/24 (a) | 100,000 | 110,328 |
| Aptiv PLC |
| 4.35%, 03/15/29 (a) | 150,000 | 169,304 |
| 5.40%, 03/15/49 (a) | 100,000 | 110,957 |
| Automatic Data Processing, Inc. |
| 3.38%, 09/15/25 (a) | 200,000 | 226,317 |
| 1.25%, 09/01/30 (a) | 300,000 | 297,391 |
| AutoNation, Inc. |
| 3.50%, 11/15/24 (a) | 250,000 | 265,751 |
| 4.75%, 06/01/30 (a) | 250,000 | 293,994 |
| AutoZone, Inc. |
| 2.88%, 01/15/23 (a) | 250,000 | 262,045 |
| 3.13%, 07/15/23 (a) | 100,000 | 106,846 |
| 3.25%, 04/15/25 (a) | 200,000 | 220,561 |
| 3.75%, 04/18/29 (a) | 150,000 | 174,115 |
| 4.00%, 04/15/30 (a) | 150,000 | 179,326 |
| 1.65%, 01/15/31 (a) | 250,000 | 247,277 |
| Best Buy Co., Inc. |
| 4.45%, 10/01/28 (a) | 100,000 | 118,349 |
| Block Financial LLC |
| 5.25%, 10/01/25 (a) | 100,000 | 113,178 |
| 3.88%, 08/15/30 (a) | 250,000 | 254,902 |
| Booking Holdings, Inc. |
| 2.75%, 03/15/23 (a) | 250,000 | 263,699 |
| 4.10%, 04/13/25 (a) | 200,000 | 227,386 |
| 3.60%, 06/01/26 (a) | 150,000 | 168,644 |
| 4.50%, 04/13/27 (a) | 200,000 | 236,048 |
| 4.63%, 04/13/30 (a) | 450,000 | 544,345 |
| BorgWarner, Inc. |
| 3.38%, 03/15/25 (a) | 100,000 | 109,041 |
| 2.65%, 07/01/27 (a) | 250,000 | 265,351 |
| 4.38%, 03/15/45 (a) | 100,000 | 109,921 |
| Choice Hotels International, Inc. |
| 3.70%, 12/01/29 (a) | 100,000 | 105,083 |
| 3.70%, 01/15/31 (a) | 250,000 | 264,291 |
| Costco Wholesale Corp. |
| 2.75%, 05/18/24 (a) | 200,000 | 216,275 |
| 3.00%, 05/18/27 (a) | 400,000 | 451,108 |
| 1.60%, 04/20/30 (a) | 100,000 | 102,485 |
| 1.75%, 04/20/32 (a) | 400,000 | 413,038 |
| Cummins, Inc. |
| 0.75%, 09/01/25 (a) | 250,000 | 250,819 |
| 1.50%, 09/01/30 (a) | 250,000 | 249,011 |
| 4.88%, 10/01/43 (a) | 150,000 | 203,863 |
| 2.60%, 09/01/50 (a) | 250,000 | 247,627 |
| D.R. Horton, Inc. |
| 5.75%, 08/15/23 (a) | 250,000 | 282,726 |
| 2.60%, 10/15/25 (a) | 175,000 | 187,915 |
| Daimler Finance North America LLC |
| 8.50%, 01/18/31 | 200,000 | 309,151 |
| Darden Restaurants, Inc. |
| 3.85%, 05/01/27 (a) | 200,000 | 206,553 |
| Dollar General Corp. |
| 3.25%, 04/15/23 (a) | 100,000 | 106,287 |
| 3.88%, 04/15/27 (a) | 200,000 | 231,317 |
| 4.13%, 05/01/28 (a) | 100,000 | 118,252 |
| 3.50%, 04/03/30 (a) | 200,000 | 229,393 |
| 4.13%, 04/03/50 (a) | 100,000 | 121,145 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Dollar Tree, Inc. |
| 3.70%, 05/15/23 (a) | 100,000 | 107,872 |
| 4.00%, 05/15/25 (a) | 300,000 | 340,570 |
| 4.20%, 05/15/28 (a) | 250,000 | 295,087 |
| eBay, Inc. |
| 3.80%, 03/09/22 (a) | 100,000 | 104,908 |
| 2.60%, 07/15/22 (a) | 195,000 | 201,780 |
| 2.75%, 01/30/23 (a) | 300,000 | 315,439 |
| 3.45%, 08/01/24 (a) | 200,000 | 220,160 |
| 1.90%, 03/11/25 (a) | 250,000 | 262,507 |
| 3.60%, 06/05/27 (a) | 150,000 | 169,949 |
| 2.70%, 03/11/30 (a) | 100,000 | 106,962 |
| 4.00%, 07/15/42 (a) | 150,000 | 167,874 |
| Expedia Group, Inc. |
| 3.60%, 12/15/23 (a) | 200,000 | 203,643 |
| 4.50%, 08/15/24 (a) | 150,000 | 157,520 |
| 5.00%, 02/15/26 (a) | 200,000 | 210,814 |
| 4.63%, 08/01/27 (a) | 200,000 | 208,661 |
| 3.80%, 02/15/28 (a) | 200,000 | 199,086 |
| 3.25%, 02/15/30 (a) | 200,000 | 188,863 |
| General Motors Co. |
| 4.88%, 10/02/23 | 462,000 | 505,121 |
| 5.40%, 10/02/23 | 250,000 | 277,371 |
| 6.13%, 10/01/25 (a) | 450,000 | 528,952 |
| 4.20%, 10/01/27 (a) | 300,000 | 320,749 |
| 5.00%, 10/01/28 (a) | 250,000 | 279,787 |
| 5.00%, 04/01/35 | 200,000 | 218,225 |
| 6.60%, 04/01/36 (a) | 100,000 | 119,631 |
| 5.15%, 04/01/38 (a) | 250,000 | 265,641 |
| 6.25%, 10/02/43 | 350,000 | 410,172 |
| 5.20%, 04/01/45 | 250,000 | 270,082 |
| 6.75%, 04/01/46 (a) | 100,000 | 120,802 |
| 5.40%, 04/01/48 (a) | 75,000 | 81,884 |
| 5.95%, 04/01/49 (a) | 200,000 | 235,748 |
| General Motors Financial Co., Inc. |
| 3.20%, 07/06/21 (a) | 650,000 | 660,523 |
| 4.20%, 11/06/21 | 150,000 | 155,087 |
| 3.45%, 04/10/22 (a) | 500,000 | 514,665 |
| 3.55%, 07/08/22 | 350,000 | 363,408 |
| 3.25%, 01/05/23 (a) | 250,000 | 259,559 |
| 5.20%, 03/20/23 | 450,000 | 491,571 |
| 3.70%, 05/09/23 (a) | 312,000 | 327,296 |
| 1.70%, 08/18/23 | 350,000 | 352,303 |
| 5.10%, 01/17/24 (a) | 200,000 | 219,955 |
| 3.95%, 04/13/24 (a) | 150,000 | 160,291 |
| 3.50%, 11/07/24 (a) | 150,000 | 159,107 |
| 4.00%, 01/15/25 (a) | 100,000 | 107,754 |
| 2.90%, 02/26/25 (a) | 200,000 | 207,725 |
| 4.35%, 04/09/25 (a) | 150,000 | 164,353 |
| 5.25%, 03/01/26 (a) | 450,000 | 512,536 |
| 4.35%, 01/17/27 (a) | 200,000 | 217,493 |
| 2.70%, 08/20/27 (a) | 350,000 | 350,898 |
| 3.85%, 01/05/28 (a) | 150,000 | 158,104 |
| 5.65%, 01/17/29 (a) | 100,000 | 117,231 |
| 3.60%, 06/21/30 (a) | 500,000 | 522,272 |
| GLP Capital LP/GLP Financing II, Inc. |
| 5.38%, 11/01/23 (a) | 250,000 | 267,931 |
| 5.25%, 06/01/25 (a) | 100,000 | 108,461 |
| 5.38%, 04/15/26 (a) | 150,000 | 166,721 |
| 5.75%, 06/01/28 (a) | 100,000 | 113,764 |
| 5.30%, 01/15/29 (a) | 100,000 | 111,547 |
| 4.00%, 01/15/30 (a) | 100,000 | 104,400 |
| 4.00%, 01/15/31 (a) | 400,000 | 415,594 |
| Harley-Davidson, Inc. |
| 3.50%, 07/28/25 (a) | 100,000 | 107,107 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Harman International Industries, Inc. |
| 4.15%, 05/15/25 (a) | 75,000 | 83,755 |
| Hyatt Hotels Corp. |
| 3.38%, 07/15/23 (a) | 200,000 | 203,853 |
| 5.38%, 04/23/25 (a) | 100,000 | 108,905 |
| 4.38%, 09/15/28 (a) | 150,000 | 154,640 |
| IHS Markit Ltd. |
| 4.13%, 08/01/23 (a) | 100,000 | 109,469 |
| 4.75%, 08/01/28 (a) | 150,000 | 179,904 |
| 4.25%, 05/01/29 (a) | 175,000 | 205,142 |
| JD.com, Inc. |
| 3.88%, 04/29/26 | 200,000 | 223,059 |
| 3.38%, 01/14/30 (a) | 200,000 | 218,830 |
| 4.13%, 01/14/50 | 200,000 | 227,339 |
| Kohl's Corp. |
| 9.50%, 05/15/25 (a) | 100,000 | 120,254 |
| 4.25%, 07/17/25 (a) | 250,000 | 249,780 |
| Las Vegas Sands Corp. |
| 3.20%, 08/08/24 (a) | 250,000 | 254,010 |
| 2.90%, 06/25/25 (a) | 400,000 | 398,692 |
| 3.50%, 08/18/26 (a) | 150,000 | 153,334 |
| 3.90%, 08/08/29 (a) | 150,000 | 151,837 |
| Lear Corp. |
| 3.80%, 09/15/27 (a) | 50,000 | 53,536 |
| 4.25%, 05/15/29 (a) | 50,000 | 53,194 |
| 3.50%, 05/30/30 (a) | 150,000 | 152,687 |
| 5.25%, 05/15/49 (a) | 100,000 | 108,251 |
| Lowe's Cos., Inc. |
| 3.12%, 04/15/22 (a) | 150,000 | 155,777 |
| 3.88%, 09/15/23 (a) | 100,000 | 109,628 |
| 3.13%, 09/15/24 (a) | 100,000 | 109,427 |
| 3.38%, 09/15/25 (a) | 474,000 | 531,752 |
| 2.50%, 04/15/26 (a) | 200,000 | 217,618 |
| 3.10%, 05/03/27 (a) | 250,000 | 279,316 |
| 3.65%, 04/05/29 (a) | 400,000 | 462,976 |
| 4.50%, 04/15/30 (a) | 200,000 | 248,309 |
| 5.00%, 04/15/40 (a) | 100,000 | 133,259 |
| 4.65%, 04/15/42 (a) | 195,000 | 248,815 |
| 4.25%, 09/15/44 (a) | 100,000 | 119,815 |
| 4.38%, 09/15/45 (a) | 100,000 | 122,496 |
| 3.70%, 04/15/46 (a) | 150,000 | 170,987 |
| 4.05%, 05/03/47 (a) | 250,000 | 299,716 |
| 4.55%, 04/05/49 (a) | 300,000 | 384,745 |
| 5.13%, 04/15/50 (a) | 250,000 | 347,777 |
| Magna International, Inc. |
| 3.63%, 06/15/24 (a) | 200,000 | 221,406 |
| 2.45%, 06/15/30 (a) | 200,000 | 212,043 |
| Marriott International, Inc. |
| 3.75%, 03/15/25 (a) | 330,000 | 342,152 |
| 5.75%, 05/01/25 (a) | 300,000 | 338,037 |
| 3.13%, 06/15/26 (a) | 150,000 | 150,741 |
| 4.00%, 04/15/28 (a) | 100,000 | 102,493 |
| 4.63%, 06/15/30 (a) | 200,000 | 219,186 |
| 3.50%, 10/15/32 (a) | 350,000 | 352,728 |
| Mastercard, Inc. |
| 2.00%, 11/21/21 (a) | 250,000 | 255,036 |
| 2.00%, 03/03/25 (a) | 150,000 | 160,370 |
| 2.95%, 11/21/26 (a) | 250,000 | 283,011 |
| 3.30%, 03/26/27 (a) | 150,000 | 172,317 |
| 3.50%, 02/26/28 (a) | 100,000 | 116,969 |
| 2.95%, 06/01/29 (a) | 150,000 | 170,053 |
| 3.35%, 03/26/30 (a) | 200,000 | 235,283 |
| 3.80%, 11/21/46 (a) | 200,000 | 247,047 |
| 3.95%, 02/26/48 (a) | 150,000 | 190,836 |
| 3.65%, 06/01/49 (a) | 250,000 | 306,194 |
| 3.85%, 03/26/50 (a) | 200,000 | 253,270 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| McDonald's Corp. |
| 2.63%, 01/15/22 | 250,000 | 257,575 |
| 3.35%, 04/01/23 (a) | 150,000 | 160,723 |
| 3.38%, 05/26/25 (a) | 150,000 | 167,513 |
| 3.30%, 07/01/25 (a) | 100,000 | 111,832 |
| 1.45%, 09/01/25 (a) | 150,000 | 155,101 |
| 3.70%, 01/30/26 (a) | 330,000 | 376,759 |
| 3.50%, 03/01/27 (a) | 200,000 | 227,236 |
| 3.50%, 07/01/27 (a) | 200,000 | 228,955 |
| 3.80%, 04/01/28 (a) | 350,000 | 408,476 |
| 2.63%, 09/01/29 (a) | 100,000 | 109,162 |
| 2.13%, 03/01/30 (a) | 250,000 | 260,451 |
| 3.60%, 07/01/30 (a) | 150,000 | 174,757 |
| 4.70%, 12/09/35 (a) | 250,000 | 320,391 |
| 5.70%, 02/01/39 | 150,000 | 211,198 |
| 4.88%, 07/15/40 | 100,000 | 130,947 |
| 3.70%, 02/15/42 | 200,000 | 224,206 |
| 4.60%, 05/26/45 (a) | 100,000 | 125,748 |
| 4.88%, 12/09/45 (a) | 420,000 | 550,412 |
| 4.45%, 03/01/47 (a) | 100,000 | 124,587 |
| 4.45%, 09/01/48 (a) | 250,000 | 313,032 |
| 3.63%, 09/01/49 (a) | 300,000 | 338,604 |
| 4.20%, 04/01/50 (a) | 100,000 | 122,738 |
| NIKE, Inc. |
| 2.25%, 05/01/23 (a) | 100,000 | 104,543 |
| 2.40%, 03/27/25 (a) | 150,000 | 161,835 |
| 2.38%, 11/01/26 (a) | 100,000 | 109,298 |
| 2.75%, 03/27/27 (a) | 350,000 | 389,014 |
| 2.85%, 03/27/30 (a) | 350,000 | 391,363 |
| 3.25%, 03/27/40 (a) | 150,000 | 169,697 |
| 3.38%, 11/01/46 (a) | 350,000 | 400,321 |
| 3.38%, 03/27/50 (a) | 200,000 | 230,452 |
| Nordstrom, Inc. |
| 4.00%, 03/15/27 (a) | 196,000 | 172,126 |
| 4.38%, 04/01/30 (a) | 100,000 | 80,921 |
| 5.00%, 01/15/44 (a) | 100,000 | 70,602 |
| NVR, Inc. |
| 3.95%, 09/15/22 (a) | 100,000 | 105,861 |
| 3.00%, 05/15/30 (a) | 200,000 | 217,376 |
| O'Reilly Automotive, Inc. |
| 3.80%, 09/01/22 (a) | 150,000 | 158,640 |
| 3.60%, 09/01/27 (a) | 150,000 | 171,976 |
| 4.35%, 06/01/28 (a) | 200,000 | 238,033 |
| 4.20%, 04/01/30 (a) | 100,000 | 120,940 |
| PACCAR Financial Corp. |
| 3.15%, 08/09/21 | 150,000 | 154,141 |
| 2.65%, 05/10/22 | 150,000 | 156,071 |
| 2.00%, 09/26/22 | 100,000 | 103,357 |
| 2.65%, 04/06/23 | 150,000 | 158,723 |
| 0.35%, 08/11/23 | 150,000 | 149,990 |
| 1.80%, 02/06/25 | 200,000 | 210,119 |
| PVH Corp. |
| 4.63%, 07/10/25 (a) | 250,000 | 256,597 |
| Ralph Lauren Corp. |
| 1.70%, 06/15/22 | 150,000 | 152,912 |
| 2.95%, 06/15/30 (a) | 150,000 | 155,777 |
| Ross Stores, Inc. |
| 4.70%, 04/15/27 (a) | 100,000 | 117,590 |
| 4.80%, 04/15/30 (a) | 150,000 | 181,154 |
| 5.45%, 04/15/50 (a) | 100,000 | 129,364 |
| Sands China Ltd. |
| 4.60%, 08/08/23 (a) | 500,000 | 535,295 |
| 5.13%, 08/08/25 (a) | 200,000 | 221,284 |
| 5.40%, 08/08/28 (a) | 400,000 | 452,404 |
| 4.38%, 06/18/30 (a)(c) | 200,000 | 215,937 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Starbucks Corp. |
| 1.30%, 05/07/22 | 150,000 | 152,418 |
| 2.70%, 06/15/22 (a) | 150,000 | 155,339 |
| 3.10%, 03/01/23 (a) | 100,000 | 106,387 |
| 3.85%, 10/01/23 (a) | 245,000 | 268,042 |
| 3.80%, 08/15/25 (a) | 150,000 | 170,857 |
| 2.00%, 03/12/27 (a) | 200,000 | 210,511 |
| 4.00%, 11/15/28 (a) | 150,000 | 176,929 |
| 3.55%, 08/15/29 (a) | 200,000 | 230,632 |
| 2.25%, 03/12/30 (a) | 100,000 | 103,952 |
| 2.55%, 11/15/30 (a) | 195,000 | 207,204 |
| 3.75%, 12/01/47 (a) | 250,000 | 275,399 |
| 4.50%, 11/15/48 (a) | 300,000 | 367,566 |
| 4.45%, 08/15/49 (a) | 150,000 | 183,064 |
| 3.35%, 03/12/50 (a) | 100,000 | 103,388 |
| 3.50%, 11/15/50 (a) | 200,000 | 212,692 |
| Tapestry, Inc. |
| 4.25%, 04/01/25 (a) | 150,000 | 153,203 |
| 4.13%, 07/15/27 (a) | 100,000 | 97,746 |
| Target Corp. |
| 2.90%, 01/15/22 | 150,000 | 155,456 |
| 3.50%, 07/01/24 | 263,000 | 293,123 |
| 2.25%, 04/15/25 (a) | 300,000 | 322,120 |
| 2.50%, 04/15/26 | 200,000 | 219,689 |
| 3.38%, 04/15/29 (a) | 150,000 | 175,371 |
| 2.35%, 02/15/30 (a) | 150,000 | 163,116 |
| 2.65%, 09/15/30 (a) | 350,000 | 389,585 |
| 6.50%, 10/15/37 | 100,000 | 156,870 |
| 7.00%, 01/15/38 | 100,000 | 163,625 |
| 4.00%, 07/01/42 | 75,000 | 96,714 |
| 3.90%, 11/15/47 (a) | 400,000 | 523,458 |
| The Home Depot, Inc. |
| 3.25%, 03/01/22 | 250,000 | 261,376 |
| 2.63%, 06/01/22 (a) | 250,000 | 259,896 |
| 2.70%, 04/01/23 (a) | 150,000 | 158,420 |
| 3.75%, 02/15/24 (a) | 195,000 | 215,966 |
| 3.35%, 09/15/25 (a) | 200,000 | 225,711 |
| 3.00%, 04/01/26 (a) | 150,000 | 168,795 |
| 2.13%, 09/15/26 (a) | 200,000 | 216,027 |
| 2.50%, 04/15/27 (a) | 100,000 | 109,678 |
| 2.80%, 09/14/27 (a) | 150,000 | 167,263 |
| 2.95%, 06/15/29 (a) | 350,000 | 395,106 |
| 2.70%, 04/15/30 (a) | 200,000 | 222,292 |
| 5.88%, 12/16/36 | 755,000 | 1,132,802 |
| 3.30%, 04/15/40 (a) | 350,000 | 399,892 |
| 5.40%, 09/15/40 (a) | 100,000 | 143,153 |
| 4.20%, 04/01/43 (a) | 230,000 | 289,752 |
| 4.88%, 02/15/44 (a) | 195,000 | 265,702 |
| 4.40%, 03/15/45 (a) | 150,000 | 193,954 |
| 4.25%, 04/01/46 (a) | 350,000 | 448,824 |
| 3.90%, 06/15/47 (a) | 100,000 | 123,090 |
| 4.50%, 12/06/48 (a) | 350,000 | 469,789 |
| 3.13%, 12/15/49 (a) | 200,000 | 221,493 |
| 3.35%, 04/15/50 (a) | 400,000 | 460,506 |
| 3.50%, 09/15/56 (a) | 150,000 | 179,572 |
| The TJX Cos., Inc. |
| 2.50%, 05/15/23 (a) | 250,000 | 262,094 |
| 3.50%, 04/15/25 (a) | 200,000 | 223,407 |
| 2.25%, 09/15/26 (a) | 200,000 | 213,801 |
| 3.75%, 04/15/27 (a) | 100,000 | 115,283 |
| 3.88%, 04/15/30 (a) | 250,000 | 297,801 |
| 4.50%, 04/15/50 (a) | 100,000 | 127,982 |
| The Western Union Co. |
| 4.25%, 06/09/23 (a) | 100,000 | 108,562 |
| 2.85%, 01/10/25 (a) | 100,000 | 105,973 |
| 6.20%, 11/17/36 | 100,000 | 119,080 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Toyota Motor Corp. |
| 3.42%, 07/20/23 | 200,000 | 216,651 |
| 3.67%, 07/20/28 | 150,000 | 177,633 |
| Toyota Motor Credit Corp. |
| 3.40%, 09/15/21 | 389,000 | 401,551 |
| 2.60%, 01/11/22 | 150,000 | 154,651 |
| 3.30%, 01/12/22 | 250,000 | 260,116 |
| 1.15%, 05/26/22 | 500,000 | 507,070 |
| 0.45%, 07/22/22 | 250,000 | 250,544 |
| 2.15%, 09/08/22 | 500,000 | 517,735 |
| 2.63%, 01/10/23 | 100,000 | 105,070 |
| 2.90%, 03/30/23 | 200,000 | 212,535 |
| 0.50%, 08/14/23 | 450,000 | 451,123 |
| 1.35%, 08/25/23 | 200,000 | 205,319 |
| 3.45%, 09/20/23 | 100,000 | 108,962 |
| 3.35%, 01/08/24 | 150,000 | 163,548 |
| 2.90%, 04/17/24 | 200,000 | 216,104 |
| 2.00%, 10/07/24 | 100,000 | 105,365 |
| 1.80%, 02/13/25 | 400,000 | 418,882 |
| 3.00%, 04/01/25 | 300,000 | 330,318 |
| 3.20%, 01/11/27 | 150,000 | 169,120 |
| 1.15%, 08/13/27 | 450,000 | 450,857 |
| 3.65%, 01/08/29 | 150,000 | 178,433 |
| 2.15%, 02/13/30 | 100,000 | 106,398 |
| 3.38%, 04/01/30 | 200,000 | 233,986 |
| TWDC Enterprises 18 Corp. |
| 4.38%, 08/16/41 | 100,000 | 123,077 |
| VF Corp. |
| 2.40%, 04/23/25 (a) | 350,000 | 372,391 |
| 2.95%, 04/23/30 (a) | 200,000 | 218,314 |
| Visa, Inc. |
| 2.15%, 09/15/22 (a) | 200,000 | 207,454 |
| 2.80%, 12/14/22 (a) | 400,000 | 421,798 |
| 3.15%, 12/14/25 (a) | 600,000 | 675,102 |
| 1.90%, 04/15/27 (a) | 300,000 | 318,919 |
| 0.75%, 08/15/27 (a) | 350,000 | 348,724 |
| 2.05%, 04/15/30 (a) | 300,000 | 319,462 |
| 1.10%, 02/15/31 (a) | 350,000 | 341,743 |
| 4.15%, 12/14/35 (a) | 330,000 | 431,168 |
| 2.70%, 04/15/40 (a) | 250,000 | 271,166 |
| 4.30%, 12/14/45 (a) | 645,000 | 866,645 |
| 3.65%, 09/15/47 (a) | 100,000 | 124,157 |
| 2.00%, 08/15/50 (a) | 250,000 | 235,112 |
| Walgreen Co. |
| 3.10%, 09/15/22 | 150,000 | 157,499 |
| 4.40%, 09/15/42 | 400,000 | 424,158 |
| Walgreens Boots Alliance, Inc. |
| 3.80%, 11/18/24 (a) | 580,000 | 641,767 |
| 3.45%, 06/01/26 (a) | 300,000 | 329,877 |
| 3.20%, 04/15/30 (a) | 150,000 | 159,413 |
| 4.80%, 11/18/44 (a) | 300,000 | 330,885 |
| 4.65%, 06/01/46 (a) | 100,000 | 108,501 |
| 4.10%, 04/15/50 (a) | 150,000 | 151,745 |
| Walmart, Inc. |
| 3.13%, 06/23/21 | 600,000 | 614,277 |
| 2.35%, 12/15/22 (a) | 250,000 | 261,300 |
| 2.55%, 04/11/23 (a) | 500,000 | 526,442 |
| 3.40%, 06/26/23 (a) | 450,000 | 487,935 |
| 3.30%, 04/22/24 (a) | 250,000 | 273,762 |
| 2.85%, 07/08/24 (a) | 200,000 | 217,627 |
| 2.65%, 12/15/24 (a) | 200,000 | 217,296 |
| 3.55%, 06/26/25 (a) | 250,000 | 284,880 |
| 3.05%, 07/08/26 (a) | 150,000 | 169,426 |
| 3.70%, 06/26/28 (a) | 500,000 | 592,817 |
| 3.25%, 07/08/29 (a) | 150,000 | 175,401 |
| 2.38%, 09/24/29 (a) | 100,000 | 110,274 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 5.25%, 09/01/35 | 450,000 | 653,562 |
| 6.50%, 08/15/37 | 150,000 | 238,715 |
| 3.95%, 06/28/38 (a) | 250,000 | 314,005 |
| 5.63%, 04/01/40 | 100,000 | 149,763 |
| 5.00%, 10/25/40 | 150,000 | 211,302 |
| 5.63%, 04/15/41 | 200,000 | 305,256 |
| 4.30%, 04/22/44 (a) | 500,000 | 663,725 |
| 3.63%, 12/15/47 (a) | 150,000 | 184,456 |
| 4.05%, 06/29/48 (a) | 600,000 | 781,452 |
| 2.95%, 09/24/49 (a) | 150,000 | 167,651 |
| | | 94,266,520 |
| Consumer Non-Cyclical 4.5% |
| Abbott Laboratories |
| 3.40%, 11/30/23 (a) | 200,000 | 218,406 |
| 2.95%, 03/15/25 (a) | 350,000 | 384,160 |
| 3.75%, 11/30/26 (a) | 250,000 | 292,694 |
| 1.15%, 01/30/28 (a) | 250,000 | 252,827 |
| 1.40%, 06/30/30 (a) | 200,000 | 203,153 |
| 4.75%, 11/30/36 (a) | 500,000 | 676,452 |
| 5.30%, 05/27/40 | 100,000 | 148,159 |
| 4.75%, 04/15/43 (a) | 150,000 | 208,726 |
| 4.90%, 11/30/46 (a) | 726,000 | 1,042,093 |
| AbbVie, Inc. |
| 3.38%, 11/14/21 | 150,000 | 155,228 |
| 2.15%, 11/19/21 (c) | 250,000 | 254,999 |
| 3.45%, 03/15/22 (a)(c) | 750,000 | 780,052 |
| 3.25%, 10/01/22 (a)(c) | 300,000 | 314,653 |
| 2.90%, 11/06/22 | 400,000 | 420,602 |
| 3.20%, 11/06/22 (a) | 200,000 | 210,534 |
| 2.30%, 11/21/22 (c) | 500,000 | 519,300 |
| 2.85%, 05/14/23 (a) | 300,000 | 317,154 |
| 3.75%, 11/14/23 (a) | 300,000 | 328,939 |
| 3.85%, 06/15/24 (a)(c) | 450,000 | 496,478 |
| 2.60%, 11/21/24 (a)(c) | 575,000 | 615,997 |
| 3.80%, 03/15/25 (a)(c) | 750,000 | 838,714 |
| 3.60%, 05/14/25 (a) | 800,000 | 893,376 |
| 3.20%, 05/14/26 (a) | 350,000 | 389,896 |
| 2.95%, 11/21/26 (a)(c) | 600,000 | 659,667 |
| 4.25%, 11/14/28 (a) | 300,000 | 357,717 |
| 3.20%, 11/21/29 (a)(c) | 900,000 | 998,635 |
| 4.55%, 03/15/35 (a)(c) | 350,000 | 435,641 |
| 4.50%, 05/14/35 (a) | 400,000 | 494,498 |
| 4.30%, 05/14/36 (a) | 450,000 | 538,609 |
| 4.05%, 11/21/39 (a)(c) | 700,000 | 819,035 |
| 4.63%, 10/01/42 (a)(c) | 100,000 | 123,394 |
| 4.40%, 11/06/42 | 450,000 | 544,124 |
| 4.85%, 06/15/44 (a)(c) | 150,000 | 190,084 |
| 4.75%, 03/15/45 (a)(c) | 111,000 | 137,846 |
| 4.70%, 05/14/45 (a) | 450,000 | 562,495 |
| 4.45%, 05/14/46 (a) | 400,000 | 487,260 |
| 4.88%, 11/14/48 (a) | 300,000 | 385,671 |
| 4.25%, 11/21/49 (a)(c) | 1,150,000 | 1,391,615 |
| Adventist Health System |
| 3.63%, 03/01/49 (a) | 100,000 | 108,600 |
| Advocate Health & Hospitals Corp. |
| 3.83%, 08/15/28 (a) | 50,000 | 58,061 |
| 4.27%, 08/15/48 (a) | 150,000 | 195,760 |
| 3.39%, 10/15/49 (a) | 100,000 | 113,304 |
| Agilent Technologies, Inc. |
| 2.75%, 09/15/29 (a) | 150,000 | 162,962 |
| 2.10%, 06/04/30 (a) | 150,000 | 154,535 |
| Ahold Finance USA LLC |
| 6.88%, 05/01/29 | 75,000 | 105,911 |
| Allina Health System |
| 3.89%, 04/15/49 | 100,000 | 117,633 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Altria Group, Inc. |
| 3.49%, 02/14/22 | 150,000 | 156,536 |
| 2.85%, 08/09/22 | 150,000 | 156,632 |
| 2.95%, 05/02/23 | 450,000 | 476,543 |
| 4.00%, 01/31/24 | 200,000 | 221,400 |
| 3.80%, 02/14/24 (a) | 250,000 | 274,556 |
| 2.35%, 05/06/25 (a) | 170,000 | 180,733 |
| 4.40%, 02/14/26 (a) | 100,000 | 115,929 |
| 2.63%, 09/16/26 (a) | 100,000 | 107,892 |
| 4.80%, 02/14/29 (a) | 450,000 | 538,967 |
| 3.40%, 05/06/30 (a) | 200,000 | 221,015 |
| 5.80%, 02/14/39 (a) | 300,000 | 383,991 |
| 4.25%, 08/09/42 | 200,000 | 215,743 |
| 4.50%, 05/02/43 | 100,000 | 111,441 |
| 5.38%, 01/31/44 | 445,000 | 553,426 |
| 3.88%, 09/16/46 (a) | 200,000 | 209,304 |
| 5.95%, 02/14/49 (a) | 400,000 | 543,562 |
| 4.45%, 05/06/50 (a) | 200,000 | 229,974 |
| 6.20%, 02/14/59 (a) | 150,000 | 207,077 |
| AmerisourceBergen Corp. |
| 3.40%, 05/15/24 (a) | 200,000 | 217,757 |
| 3.25%, 03/01/25 (a) | 100,000 | 110,151 |
| 3.45%, 12/15/27 (a) | 100,000 | 114,624 |
| 2.80%, 05/15/30 (a) | 150,000 | 161,263 |
| 4.25%, 03/01/45 (a) | 50,000 | 57,690 |
| 4.30%, 12/15/47 (a) | 100,000 | 117,309 |
| Amgen, Inc. |
| 2.70%, 05/01/22 (a) | 100,000 | 103,450 |
| 2.65%, 05/11/22 (a) | 300,000 | 310,969 |
| 3.63%, 05/15/22 (a) | 250,000 | 261,860 |
| 2.25%, 08/19/23 (a) | 200,000 | 209,983 |
| 3.63%, 05/22/24 (a) | 250,000 | 276,117 |
| 1.90%, 02/21/25 (a) | 100,000 | 105,176 |
| 3.13%, 05/01/25 (a) | 150,000 | 165,655 |
| 2.60%, 08/19/26 (a) | 330,000 | 362,719 |
| 2.20%, 02/21/27 (a) | 300,000 | 318,313 |
| 3.20%, 11/02/27 (a) | 150,000 | 169,023 |
| 2.45%, 02/21/30 (a) | 200,000 | 214,188 |
| 2.30%, 02/25/31 (a) | 225,000 | 237,454 |
| 3.15%, 02/21/40 (a) | 400,000 | 427,252 |
| 4.95%, 10/01/41 | 300,000 | 398,367 |
| 5.15%, 11/15/41 (a) | 200,000 | 269,200 |
| 4.40%, 05/01/45 (a) | 350,000 | 437,391 |
| 4.56%, 06/15/48 (a) | 300,000 | 390,835 |
| 3.38%, 02/21/50 (a) | 400,000 | 438,730 |
| 4.66%, 06/15/51 (a) | 725,000 | 959,788 |
| 2.77%, 09/01/53 (a)(c) | 269,000 | 265,519 |
| Anheuser-Busch Cos., LLC/Anheuser-Busch InBev Worldwide, Inc. |
| 3.65%, 02/01/26 (a) | 750,000 | 849,045 |
| 4.70%, 02/01/36 (a) | 1,055,000 | 1,265,778 |
| 4.90%, 02/01/46 (a) | 1,800,000 | 2,232,099 |
| Anheuser-Busch InBev Finance, Inc. |
| 3.30%, 02/01/23 (a) | 449,000 | 478,140 |
| 3.70%, 02/01/24 | 250,000 | 275,497 |
| 3.65%, 02/01/26 (a) | 350,000 | 395,265 |
| 4.70%, 02/01/36 (a) | 150,000 | 178,559 |
| 4.00%, 01/17/43 | 100,000 | 110,505 |
| 4.63%, 02/01/44 | 150,000 | 179,437 |
| 4.90%, 02/01/46 (a) | 200,000 | 246,824 |
| Anheuser-Busch InBev Worldwide, Inc. |
| 3.50%, 01/12/24 (a) | 300,000 | 327,468 |
| 4.15%, 01/23/25 (a) | 300,000 | 341,185 |
| 4.00%, 04/13/28 (a) | 450,000 | 522,286 |
| 4.75%, 01/23/29 (a) | 700,000 | 854,658 |
| 3.50%, 06/01/30 (a) | 300,000 | 344,232 |
| 4.90%, 01/23/31 (a) | 250,000 | 316,810 |
| 4.38%, 04/15/38 (a) | 250,000 | 288,616 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 8.20%, 01/15/39 | 250,000 | 403,886 |
| 5.45%, 01/23/39 (a) | 300,000 | 382,936 |
| 8.00%, 11/15/39 | 150,000 | 239,378 |
| 4.35%, 06/01/40 (a) | 200,000 | 232,658 |
| 4.95%, 01/15/42 | 200,000 | 244,003 |
| 3.75%, 07/15/42 | 100,000 | 107,570 |
| 4.60%, 04/15/48 (a) | 400,000 | 479,532 |
| 4.44%, 10/06/48 (a) | 400,000 | 471,382 |
| 5.55%, 01/23/49 (a) | 800,000 | 1,077,660 |
| 4.50%, 06/01/50 (a) | 400,000 | 485,676 |
| 4.75%, 04/15/58 (a) | 150,000 | 187,069 |
| 5.80%, 01/23/59 (a) | 300,000 | 433,524 |
| 4.60%, 06/01/60 (a) | 400,000 | 493,162 |
| Archer-Daniels-Midland Co. |
| 3.38%, 03/15/22 (a) | 150,000 | 156,741 |
| 2.75%, 03/27/25 (a) | 200,000 | 218,295 |
| 2.50%, 08/11/26 (a) | 200,000 | 218,403 |
| 3.25%, 03/27/30 (a) | 200,000 | 230,636 |
| 4.54%, 03/26/42 | 100,000 | 134,652 |
| 4.02%, 04/16/43 | 100,000 | 126,697 |
| 3.75%, 09/15/47 (a) | 200,000 | 251,549 |
| 4.50%, 03/15/49 (a) | 100,000 | 142,169 |
| Ascension Health |
| 3.11%, 11/15/39 (a) | 100,000 | 110,064 |
| 3.95%, 11/15/46 | 250,000 | 317,766 |
| AstraZeneca PLC |
| 2.38%, 06/12/22 (a) | 100,000 | 103,513 |
| 3.50%, 08/17/23 (a) | 100,000 | 108,529 |
| 3.38%, 11/16/25 | 450,000 | 507,634 |
| 0.70%, 04/08/26 (a) | 300,000 | 297,751 |
| 3.13%, 06/12/27 (a) | 100,000 | 111,357 |
| 4.00%, 01/17/29 (a) | 250,000 | 298,671 |
| 1.38%, 08/06/30 (a) | 250,000 | 245,702 |
| 6.45%, 09/15/37 | 430,000 | 667,418 |
| 4.00%, 09/18/42 | 250,000 | 312,142 |
| 4.38%, 11/16/45 | 100,000 | 132,484 |
| 4.38%, 08/17/48 (a) | 150,000 | 203,012 |
| 2.13%, 08/06/50 (a) | 250,000 | 232,845 |
| Banner Health |
| 2.34%, 01/01/30 (a) | 150,000 | 157,211 |
| BAT Capital Corp. |
| 2.76%, 08/15/22 (a) | 300,000 | 311,992 |
| 3.22%, 08/15/24 (a) | 400,000 | 431,624 |
| 2.79%, 09/06/24 (a) | 150,000 | 159,842 |
| 3.22%, 09/06/26 (a) | 300,000 | 325,446 |
| 4.70%, 04/02/27 (a) | 150,000 | 173,980 |
| 3.56%, 08/15/27 (a) | 800,000 | 873,988 |
| 3.46%, 09/06/29 (a) | 100,000 | 108,961 |
| 4.91%, 04/02/30 (a) | 225,000 | 268,392 |
| 4.39%, 08/15/37 (a) | 250,000 | 274,395 |
| 4.54%, 08/15/47 (a) | 500,000 | 545,012 |
| 4.76%, 09/06/49 (a) | 150,000 | 168,830 |
| 5.28%, 04/02/50 (a) | 100,000 | 120,904 |
| Baxalta, Inc. |
| 4.00%, 06/23/25 (a) | 150,000 | 171,903 |
| 5.25%, 06/23/45 (a) | 99,000 | 139,342 |
| Baxter International, Inc. |
| 1.70%, 08/15/21 (a) | 100,000 | 101,235 |
| 3.75%, 10/01/25 (a)(c) | 150,000 | 171,753 |
| 2.60%, 08/15/26 (a) | 129,000 | 141,657 |
| 3.95%, 04/01/30 (a)(c) | 125,000 | 150,601 |
| 3.50%, 08/15/46 (a) | 85,000 | 96,798 |
| BayCare Health System, Inc. |
| 3.83%, 11/15/50 (a) | 100,000 | 126,139 |
| Baylor Scott & White Holdings |
| 4.19%, 11/15/45 (a) | 100,000 | 126,151 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Becton Dickinson & Co. |
| 2.89%, 06/06/22 (a) | 350,000 | 363,422 |
| 3.36%, 06/06/24 (a) | 500,000 | 544,372 |
| 3.73%, 12/15/24 (a) | 252,000 | 280,165 |
| 3.70%, 06/06/27 (a) | 298,000 | 338,296 |
| 2.82%, 05/20/30 (a) | 200,000 | 217,468 |
| 4.69%, 12/15/44 (a) | 150,000 | 189,345 |
| 4.67%, 06/06/47 (a) | 200,000 | 252,708 |
| 3.79%, 05/20/50 (a) | 200,000 | 227,360 |
| Biogen, Inc. |
| 3.63%, 09/15/22 | 150,000 | 159,599 |
| 4.05%, 09/15/25 (a) | 250,000 | 288,421 |
| 2.25%, 05/01/30 (a) | 300,000 | 310,330 |
| 5.20%, 09/15/45 (a) | 350,000 | 476,012 |
| 3.15%, 05/01/50 (a) | 300,000 | 305,526 |
| Boston Scientific Corp. |
| 3.38%, 05/15/22 | 150,000 | 157,211 |
| 3.85%, 05/15/25 | 275,000 | 313,013 |
| 1.90%, 06/01/25 (a) | 300,000 | 314,659 |
| 4.00%, 03/01/28 (a) | 150,000 | 176,692 |
| 4.00%, 03/01/29 (a) | 300,000 | 351,235 |
| 4.55%, 03/01/39 (a) | 150,000 | 189,109 |
| 4.70%, 03/01/49 (a) | 300,000 | 399,901 |
| Bristol-Myers Squibb Co. |
| 2.25%, 08/15/21 | 150,000 | 152,972 |
| 2.60%, 05/16/22 | 150,000 | 156,056 |
| 2.00%, 08/01/22 | 200,000 | 206,155 |
| 3.25%, 08/15/22 | 200,000 | 211,393 |
| 3.55%, 08/15/22 | 200,000 | 212,492 |
| 2.75%, 02/15/23 (a) | 200,000 | 211,116 |
| 3.25%, 02/20/23 (a) | 150,000 | 160,491 |
| 4.00%, 08/15/23 | 350,000 | 386,970 |
| 3.63%, 05/15/24 (a) | 100,000 | 110,597 |
| 2.90%, 07/26/24 (a) | 500,000 | 545,105 |
| 3.88%, 08/15/25 (a) | 400,000 | 460,814 |
| 3.20%, 06/15/26 (a) | 250,000 | 284,167 |
| 3.25%, 02/27/27 | 150,000 | 172,282 |
| 3.45%, 11/15/27 (a) | 250,000 | 288,437 |
| 3.90%, 02/20/28 (a) | 300,000 | 354,690 |
| 3.40%, 07/26/29 (a) | 600,000 | 701,121 |
| 4.13%, 06/15/39 (a) | 400,000 | 514,686 |
| 3.25%, 08/01/42 | 200,000 | 236,164 |
| 5.25%, 08/15/43 | 400,000 | 577,170 |
| 4.63%, 05/15/44 (a) | 400,000 | 543,816 |
| 5.00%, 08/15/45 (a) | 450,000 | 645,561 |
| 4.35%, 11/15/47 (a) | 100,000 | 133,664 |
| 4.55%, 02/20/48 (a) | 150,000 | 207,466 |
| 4.25%, 10/26/49 (a) | 600,000 | 805,068 |
| Brown-Forman Corp. |
| 4.00%, 04/15/38 (a) | 150,000 | 182,395 |
| Bunge Ltd. Finance Corp. |
| 3.00%, 09/25/22 (a) | 100,000 | 104,106 |
| 1.63%, 08/17/25 (a) | 200,000 | 201,503 |
| 3.75%, 09/25/27 (a) | 250,000 | 272,331 |
| Campbell Soup Co. |
| 3.65%, 03/15/23 (a) | 150,000 | 160,569 |
| 3.95%, 03/15/25 (a) | 100,000 | 112,614 |
| 3.30%, 03/19/25 (a) | 150,000 | 163,906 |
| 4.15%, 03/15/28 (a) | 150,000 | 175,112 |
| 4.80%, 03/15/48 (a) | 100,000 | 130,022 |
| 3.13%, 04/24/50 (a) | 200,000 | 203,224 |
| Cardinal Health, Inc. |
| 2.62%, 06/15/22 (a) | 300,000 | 310,191 |
| 3.20%, 03/15/23 | 150,000 | 159,234 |
| 3.08%, 06/15/24 (a) | 350,000 | 377,627 |
| 3.75%, 09/15/25 (a) | 130,000 | 146,439 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 4.50%, 11/15/44 (a) | 100,000 | 110,515 |
| 4.90%, 09/15/45 (a) | 180,000 | 212,384 |
| 4.37%, 06/15/47 (a) | 100,000 | 112,196 |
| Catholic Health Services of Long Island Obligated Group |
| 3.37%, 07/01/50 (a)(f) | 250,000 | 249,642 |
| Children's Health System of Texas |
| 2.51%, 08/15/50 (a) | 250,000 | 246,236 |
| Children's Hospital Medical Center |
| 4.27%, 05/15/44 | 100,000 | 130,271 |
| Children's National Medical Center |
| 2.93%, 07/15/50 (a) | 100,000 | 98,780 |
| Church & Dwight Co., Inc. |
| 3.15%, 08/01/27 (a) | 100,000 | 110,503 |
| 3.95%, 08/01/47 (a) | 100,000 | 119,593 |
| Cigna Corp. |
| 3.40%, 09/17/21 | 150,000 | 154,719 |
| 3.90%, 02/15/22 | 145,000 | 152,370 |
| 3.05%, 11/30/22 (a) | 200,000 | 210,808 |
| 3.00%, 07/15/23 (a) | 150,000 | 160,193 |
| 3.75%, 07/15/23 (a) | 500,000 | 544,395 |
| 3.50%, 06/15/24 (a) | 145,000 | 158,953 |
| 3.25%, 04/15/25 (a) | 200,000 | 220,982 |
| 4.13%, 11/15/25 (a) | 350,000 | 404,595 |
| 4.50%, 02/25/26 (a) | 194,000 | 228,454 |
| 3.40%, 03/01/27 (a) | 142,000 | 159,577 |
| 3.05%, 10/15/27 (a) | 145,000 | 161,497 |
| 4.38%, 10/15/28 (a) | 760,000 | 911,183 |
| 2.40%, 03/15/30 (a) | 400,000 | 421,124 |
| 4.80%, 08/15/38 (a) | 380,000 | 481,982 |
| 3.20%, 03/15/40 (a) | 100,000 | 107,084 |
| 6.13%, 11/15/41 | 100,000 | 146,636 |
| 4.80%, 07/15/46 (a) | 320,000 | 414,589 |
| 3.88%, 10/15/47 (a) | 145,000 | 166,465 |
| 4.90%, 12/15/48 (a) | 500,000 | 670,057 |
| 3.40%, 03/15/50 (a) | 250,000 | 269,800 |
| City of Hope |
| 5.62%, 11/15/43 | 100,000 | 142,936 |
| Coca-Cola Consolidated, Inc. |
| 3.80%, 11/25/25 (a) | 100,000 | 111,751 |
| Coca-Cola Femsa S.A.B. de CV |
| 2.75%, 01/22/30 (a) | 200,000 | 215,979 |
| 1.85%, 09/01/32 (a)(f) | 250,000 | 250,245 |
| 5.25%, 11/26/43 | 150,000 | 208,564 |
| Colgate-Palmolive Co. |
| 2.25%, 11/15/22 | 100,000 | 104,361 |
| 1.95%, 02/01/23 | 100,000 | 104,254 |
| 2.10%, 05/01/23 | 150,000 | 157,143 |
| 3.25%, 03/15/24 | 100,000 | 110,026 |
| 4.00%, 08/15/45 | 100,000 | 134,879 |
| 3.70%, 08/01/47 (a) | 100,000 | 131,456 |
| CommonSpirit Health |
| 2.95%, 11/01/22 | 100,000 | 105,086 |
| 2.76%, 10/01/24 (a) | 100,000 | 104,989 |
| 3.35%, 10/01/29 (a) | 150,000 | 160,409 |
| 4.35%, 11/01/42 | 150,000 | 166,070 |
| 4.19%, 10/01/49 (a) | 350,000 | 379,774 |
| Community Health Network, Inc. |
| 3.10%, 05/01/50 (a) | 250,000 | 246,105 |
| Conagra Brands, Inc. |
| 3.80%, 10/22/21 | 250,000 | 259,396 |
| 3.20%, 01/25/23 (a) | 200,000 | 211,144 |
| 4.30%, 05/01/24 (a) | 300,000 | 335,938 |
| 4.60%, 11/01/25 (a) | 150,000 | 174,635 |
| 4.85%, 11/01/28 (a) | 250,000 | 306,815 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 5.30%, 11/01/38 (a) | 150,000 | 195,572 |
| 5.40%, 11/01/48 (a) | 250,000 | 346,694 |
| Constellation Brands, Inc. |
| 3.20%, 02/15/23 (a) | 400,000 | 424,276 |
| 4.40%, 11/15/25 (a) | 100,000 | 116,858 |
| 4.75%, 12/01/25 | 100,000 | 118,986 |
| 3.70%, 12/06/26 (a) | 250,000 | 287,679 |
| 3.50%, 05/09/27 (a) | 100,000 | 112,146 |
| 3.15%, 08/01/29 (a) | 50,000 | 54,714 |
| 2.88%, 05/01/30 (a) | 400,000 | 432,946 |
| 4.50%, 05/09/47 (a) | 150,000 | 184,769 |
| 5.25%, 11/15/48 (a) | 150,000 | 201,853 |
| 3.75%, 05/01/50 (a) | 200,000 | 222,514 |
| Cottage Health Obligated Group |
| 3.30%, 11/01/49 (a) | 100,000 | 112,328 |
| Covidien International Finance SA |
| 3.20%, 06/15/22 (a) | 200,000 | 208,630 |
| 2.95%, 06/15/23 (a) | 200,000 | 212,687 |
| CVS Health Corp. |
| 2.13%, 06/01/21 (a) | 330,000 | 333,892 |
| 3.50%, 07/20/22 (a) | 300,000 | 316,104 |
| 2.75%, 12/01/22 (a) | 250,000 | 262,025 |
| 3.70%, 03/09/23 (a) | 1,050,000 | 1,130,955 |
| 3.38%, 08/12/24 (a) | 380,000 | 417,301 |
| 2.63%, 08/15/24 (a) | 150,000 | 160,880 |
| 4.10%, 03/25/25 (a) | 800,000 | 912,768 |
| 3.88%, 07/20/25 (a) | 500,000 | 567,055 |
| 2.88%, 06/01/26 (a) | 200,000 | 218,356 |
| 3.00%, 08/15/26 (a) | 200,000 | 220,099 |
| 3.63%, 04/01/27 (a) | 150,000 | 170,351 |
| 1.30%, 08/21/27 (a) | 400,000 | 398,872 |
| 4.30%, 03/25/28 (a) | 1,750,000 | 2,062,734 |
| 3.25%, 08/15/29 (a) | 300,000 | 334,737 |
| 3.75%, 04/01/30 (a) | 300,000 | 347,436 |
| 1.75%, 08/21/30 (a) | 400,000 | 396,306 |
| 4.88%, 07/20/35 (a) | 350,000 | 447,265 |
| 4.78%, 03/25/38 (a) | 750,000 | 922,811 |
| 4.13%, 04/01/40 (a) | 300,000 | 350,848 |
| 2.70%, 08/21/40 (a) | 400,000 | 391,664 |
| 5.30%, 12/05/43 (a) | 250,000 | 327,014 |
| 5.13%, 07/20/45 (a) | 500,000 | 647,222 |
| 5.05%, 03/25/48 (a) | 1,550,000 | 2,025,501 |
| 4.25%, 04/01/50 (a) | 200,000 | 239,675 |
| Danaher Corp. |
| 3.35%, 09/15/25 (a) | 50,000 | 55,967 |
| 4.38%, 09/15/45 (a) | 100,000 | 129,743 |
| DENTSPLY SIRONA, Inc. |
| 3.25%, 06/01/30 (a) | 250,000 | 271,342 |
| DH Europe Finance II Sarl |
| 2.05%, 11/15/22 | 100,000 | 103,358 |
| 2.20%, 11/15/24 (a) | 100,000 | 106,060 |
| 2.60%, 11/15/29 (a) | 100,000 | 109,081 |
| 3.25%, 11/15/39 (a) | 250,000 | 281,340 |
| 3.40%, 11/15/49 (a) | 250,000 | 292,272 |
| Diageo Capital PLC |
| 2.63%, 04/29/23 (a) | 50,000 | 52,614 |
| 1.38%, 09/29/25 (a) | 200,000 | 206,224 |
| 3.88%, 05/18/28 (a) | 200,000 | 235,371 |
| 2.38%, 10/24/29 (a) | 200,000 | 215,022 |
| 2.00%, 04/29/30 (a) | 250,000 | 260,612 |
| 2.13%, 04/29/32 (a) | 200,000 | 208,290 |
| 3.88%, 04/29/43 (a) | 100,000 | 121,978 |
| Diageo Investment Corp. |
| 2.88%, 05/11/22 | 250,000 | 260,644 |
| 8.00%, 09/15/22 | 150,000 | 172,316 |
| 4.25%, 05/11/42 | 150,000 | 189,558 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Dignity Health |
| 4.50%, 11/01/42 | 50,000 | 53,532 |
| 5.27%, 11/01/64 | 100,000 | 124,406 |
| Duke University Health System, Inc. |
| 3.92%, 06/01/47 (a) | 100,000 | 127,986 |
| Edwards Lifesciences Corp. |
| 4.30%, 06/15/28 (a) | 100,000 | 120,790 |
| Eli Lilly & Co. |
| 2.35%, 05/15/22 | 100,000 | 103,591 |
| 2.75%, 06/01/25 (a) | 100,000 | 110,074 |
| 3.10%, 05/15/27 (a) | 100,000 | 112,993 |
| 3.38%, 03/15/29 (a) | 150,000 | 174,956 |
| 3.88%, 03/15/39 (a) | 100,000 | 123,552 |
| 3.70%, 03/01/45 (a) | 100,000 | 121,292 |
| 3.95%, 05/15/47 (a) | 100,000 | 128,208 |
| 3.95%, 03/15/49 (a) | 200,000 | 258,712 |
| 2.25%, 05/15/50 (a) | 650,000 | 623,519 |
| 4.15%, 03/15/59 (a) | 200,000 | 264,956 |
| 2.50%, 09/15/60 (a) | 250,000 | 239,871 |
| Fomento Economico Mexicano S.A.B. de CV |
| 4.38%, 05/10/43 | 200,000 | 245,154 |
| 3.50%, 01/16/50 (a) | 500,000 | 538,032 |
| General Mills, Inc. |
| 2.60%, 10/12/22 (a) | 500,000 | 521,670 |
| 4.00%, 04/17/25 (a) | 300,000 | 342,517 |
| 4.20%, 04/17/28 (a) | 275,000 | 327,062 |
| 2.88%, 04/15/30 (a) | 150,000 | 165,497 |
| 4.55%, 04/17/38 (a) | 250,000 | 324,010 |
| 4.70%, 04/17/48 (a) | 150,000 | 206,456 |
| Gilead Sciences, Inc. |
| 4.40%, 12/01/21 (a) | 724,000 | 753,510 |
| 1.95%, 03/01/22 (a) | 100,000 | 102,313 |
| 3.25%, 09/01/22 (a) | 400,000 | 421,488 |
| 2.50%, 09/01/23 (a) | 200,000 | 211,723 |
| 3.65%, 03/01/26 (a) | 450,000 | 515,266 |
| 2.95%, 03/01/27 (a) | 200,000 | 224,256 |
| 4.00%, 09/01/36 (a) | 100,000 | 125,585 |
| 5.65%, 12/01/41 (a) | 674,000 | 995,811 |
| 4.80%, 04/01/44 (a) | 300,000 | 401,980 |
| 4.50%, 02/01/45 (a) | 200,000 | 260,913 |
| 4.75%, 03/01/46 (a) | 470,000 | 633,238 |
| 4.15%, 03/01/47 (a) | 150,000 | 192,918 |
| GlaxoSmithKline Capital PLC |
| 2.85%, 05/08/22 | 150,000 | 156,398 |
| 2.88%, 06/01/22 (a) | 300,000 | 312,837 |
| 3.00%, 06/01/24 (a) | 300,000 | 326,055 |
| 3.38%, 06/01/29 (a) | 200,000 | 232,081 |
| GlaxoSmithKline Capital, Inc. |
| 2.80%, 03/18/23 | 250,000 | 265,385 |
| 3.38%, 05/15/23 | 200,000 | 216,127 |
| 3.63%, 05/15/25 | 300,000 | 341,368 |
| 3.88%, 05/15/28 | 400,000 | 476,596 |
| 6.38%, 05/15/38 | 413,000 | 643,774 |
| 4.20%, 03/18/43 | 100,000 | 129,582 |
| Hackensack Meridian Health, Inc. |
| 2.68%, 09/01/41 (a) | 250,000 | 249,747 |
| 2.88%, 09/01/50 (a) | 100,000 | 100,164 |
| 4.50%, 07/01/57 (a) | 50,000 | 65,614 |
| Hartford HealthCare Corp. |
| 3.45%, 07/01/54 | 75,000 | 74,714 |
| Hasbro, Inc. |
| 2.60%, 11/19/22 | 150,000 | 155,105 |
| 3.00%, 11/19/24 (a) | 100,000 | 105,889 |
| 3.55%, 11/19/26 (a) | 150,000 | 158,910 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.90%, 11/19/29 (a) | 100,000 | 105,171 |
| 5.10%, 05/15/44 (a) | 150,000 | 155,585 |
| HCA, Inc. |
| 4.75%, 05/01/23 | 150,000 | 164,966 |
| 5.00%, 03/15/24 | 600,000 | 678,654 |
| 5.25%, 04/15/25 | 300,000 | 350,289 |
| 5.25%, 06/15/26 (a) | 350,000 | 413,497 |
| 4.50%, 02/15/27 (a) | 200,000 | 228,312 |
| 4.13%, 06/15/29 (a) | 350,000 | 403,119 |
| 5.13%, 06/15/39 (a) | 150,000 | 186,833 |
| 5.50%, 06/15/47 (a) | 450,000 | 572,888 |
| 5.25%, 06/15/49 (a) | 350,000 | 440,571 |
| Indiana University Health, Inc. Obligated Group |
| 3.97%, 11/01/48 (a) | 55,000 | 70,853 |
| Ingredion, Inc. |
| 2.90%, 06/01/30 (a) | 250,000 | 272,499 |
| 3.90%, 06/01/50 (a) | 100,000 | 115,010 |
| Johnson & Johnson |
| 2.45%, 12/05/21 | 100,000 | 102,768 |
| 2.25%, 03/03/22 (a) | 150,000 | 154,324 |
| 2.05%, 03/01/23 (a) | 300,000 | 312,411 |
| 3.38%, 12/05/23 | 400,000 | 440,130 |
| 2.63%, 01/15/25 (a) | 100,000 | 109,009 |
| 0.55%, 09/01/25 (a) | 500,000 | 501,680 |
| 2.45%, 03/01/26 (a) | 100,000 | 109,852 |
| 2.95%, 03/03/27 (a) | 100,000 | 112,025 |
| 0.95%, 09/01/27 (a) | 400,000 | 404,010 |
| 2.90%, 01/15/28 (a) | 200,000 | 226,713 |
| 1.30%, 09/01/30 (a) | 400,000 | 405,578 |
| 4.38%, 12/05/33 (a) | 150,000 | 196,918 |
| 3.55%, 03/01/36 (a) | 100,000 | 120,117 |
| 3.63%, 03/03/37 (a) | 950,000 | 1,163,774 |
| 3.40%, 01/15/38 (a) | 150,000 | 178,069 |
| 2.10%, 09/01/40 (a) | 350,000 | 350,870 |
| 4.50%, 09/01/40 | 150,000 | 204,514 |
| 3.70%, 03/01/46 (a) | 530,000 | 664,861 |
| 3.75%, 03/03/47 (a) | 200,000 | 252,264 |
| 3.50%, 01/15/48 (a) | 150,000 | 186,350 |
| 2.25%, 09/01/50 (a) | 350,000 | 344,911 |
| 2.45%, 09/01/60 (a) | 350,000 | 345,287 |
| Kaiser Foundation Hospitals |
| 3.15%, 05/01/27 (a) | 400,000 | 452,010 |
| 4.15%, 05/01/47 (a) | 250,000 | 321,010 |
| 3.27%, 11/01/49 (a) | 150,000 | 168,986 |
| Kellogg Co. |
| 2.65%, 12/01/23 | 300,000 | 319,132 |
| 3.40%, 11/15/27 (a) | 100,000 | 112,748 |
| 4.30%, 05/15/28 (a) | 100,000 | 118,656 |
| 2.10%, 06/01/30 (a) | 250,000 | 257,720 |
| 7.45%, 04/01/31 | 100,000 | 147,001 |
| 4.50%, 04/01/46 | 100,000 | 128,116 |
| Keurig Dr Pepper, Inc. |
| 4.06%, 05/25/23 (a) | 350,000 | 382,534 |
| 4.42%, 05/25/25 (a) | 250,000 | 290,117 |
| 2.55%, 09/15/26 (a) | 100,000 | 108,789 |
| 4.60%, 05/25/28 (a) | 550,000 | 666,146 |
| 4.99%, 05/25/38 (a) | 200,000 | 262,214 |
| 4.50%, 11/15/45 (a) | 250,000 | 317,817 |
| 3.80%, 05/01/50 (a) | 150,000 | 175,173 |
| Kimberly-Clark Corp. |
| 2.75%, 02/15/26 | 250,000 | 276,325 |
| 3.95%, 11/01/28 (a) | 200,000 | 241,462 |
| 3.20%, 04/25/29 (a) | 100,000 | 115,157 |
| 3.10%, 03/26/30 (a) | 250,000 | 286,666 |
| 3.20%, 07/30/46 (a) | 200,000 | 234,404 |
| 2.88%, 02/07/50 (a) | 100,000 | 110,285 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Koninklijke Ahold Delhaize N.V. |
| 5.70%, 10/01/40 | 38,000 | 53,616 |
| Koninklijke Philips N.V. |
| 5.00%, 03/15/42 | 195,000 | 257,048 |
| Laboratory Corp. of America Holdings |
| 3.20%, 02/01/22 | 100,000 | 103,832 |
| 4.00%, 11/01/23 (a) | 200,000 | 219,274 |
| 3.25%, 09/01/24 (a) | 100,000 | 109,856 |
| 2.30%, 12/01/24 (a) | 100,000 | 106,316 |
| 3.60%, 02/01/25 (a) | 150,000 | 167,517 |
| 3.60%, 09/01/27 (a) | 150,000 | 170,964 |
| 2.95%, 12/01/29 (a) | 100,000 | 109,699 |
| 4.70%, 02/01/45 (a) | 150,000 | 192,478 |
| Mayo Clinic |
| 4.00%, 11/15/47 | 150,000 | 188,563 |
| McCormick & Co., Inc. |
| 3.15%, 08/15/24 (a) | 150,000 | 164,365 |
| 3.40%, 08/15/27 (a) | 150,000 | 169,608 |
| 4.20%, 08/15/47 (a) | 150,000 | 191,398 |
| McKesson Corp. |
| 2.70%, 12/15/22 (a) | 100,000 | 104,237 |
| 2.85%, 03/15/23 (a) | 100,000 | 104,935 |
| 3.80%, 03/15/24 (a) | 100,000 | 109,796 |
| 3.95%, 02/16/28 (a) | 100,000 | 117,318 |
| 4.75%, 05/30/29 (a) | 100,000 | 122,310 |
| 4.88%, 03/15/44 (a) | 100,000 | 122,034 |
| McLaren Health Care Corp. |
| 4.39%, 05/15/48 (a) | 200,000 | 249,194 |
| Mead Johnson Nutrition Co. |
| 4.13%, 11/15/25 (a) | 150,000 | 174,438 |
| 5.90%, 11/01/39 | 150,000 | 217,006 |
| Medtronic, Inc. |
| 3.15%, 03/15/22 | 150,000 | 156,545 |
| 2.75%, 04/01/23 (a) | 100,000 | 105,727 |
| 3.50%, 03/15/25 | 500,000 | 563,137 |
| 4.38%, 03/15/35 | 400,000 | 530,062 |
| 4.63%, 03/15/45 | 475,000 | 657,918 |
| Memorial Sloan-Kettering Cancer Center |
| 5.00%, 07/01/42 | 100,000 | 139,660 |
| 4.20%, 07/01/55 | 100,000 | 137,255 |
| Merck & Co., Inc. |
| 2.35%, 02/10/22 | 450,000 | 464,026 |
| 2.40%, 09/15/22 (a) | 150,000 | 155,787 |
| 2.80%, 05/18/23 | 250,000 | 266,744 |
| 2.90%, 03/07/24 (a) | 150,000 | 162,522 |
| 2.75%, 02/10/25 (a) | 480,000 | 524,131 |
| 0.75%, 02/24/26 (a) | 250,000 | 252,060 |
| 3.40%, 03/07/29 (a) | 250,000 | 292,462 |
| 1.45%, 06/24/30 (a) | 250,000 | 253,912 |
| 3.90%, 03/07/39 (a) | 200,000 | 250,093 |
| 2.35%, 06/24/40 (a) | 250,000 | 256,194 |
| 3.60%, 09/15/42 (a) | 100,000 | 122,239 |
| 4.15%, 05/18/43 | 200,000 | 257,445 |
| 3.70%, 02/10/45 (a) | 550,000 | 670,601 |
| 4.00%, 03/07/49 (a) | 300,000 | 388,618 |
| 2.45%, 06/24/50 (a) | 250,000 | 252,059 |
| Molson Coors Beverage Co. |
| 2.10%, 07/15/21 (a) | 168,000 | 170,126 |
| 3.50%, 05/01/22 | 195,000 | 204,033 |
| 3.00%, 07/15/26 (a) | 350,000 | 374,449 |
| 5.00%, 05/01/42 | 250,000 | 283,251 |
| 4.20%, 07/15/46 (a) | 330,000 | 343,306 |
| Mondelez International, Inc. |
| 0.63%, 07/01/22 | 200,000 | 200,979 |
| 2.13%, 04/13/23 (a) | 100,000 | 104,107 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.63%, 05/07/23 (a) | 250,000 | 270,145 |
| 1.50%, 05/04/25 (a) | 175,000 | 181,488 |
| 3.63%, 02/13/26 (a) | 200,000 | 229,287 |
| 2.75%, 04/13/30 (a) | 300,000 | 328,789 |
| Montefiore Obligated Group |
| 4.29%, 09/01/50 | 100,000 | 103,969 |
| Mount Sinai Hospitals Group, Inc. |
| 3.74%, 07/01/49 (a) | 100,000 | 112,246 |
| MultiCare Health System |
| 2.80%, 08/15/50 (a) | 100,000 | 101,621 |
| Mylan N.V. |
| 3.95%, 06/15/26 (a) | 300,000 | 339,930 |
| 5.25%, 06/15/46 (a) | 200,000 | 255,048 |
| Mylan, Inc. |
| 4.20%, 11/29/23 (a) | 230,000 | 252,832 |
| 4.55%, 04/15/28 (a) | 400,000 | 468,568 |
| 5.40%, 11/29/43 (a) | 100,000 | 125,835 |
| 5.20%, 04/15/48 (a) | 100,000 | 125,249 |
| Northwell Healthcare, Inc. |
| 3.98%, 11/01/46 (a) | 45,000 | 50,760 |
| 4.26%, 11/01/47 (a) | 150,000 | 178,614 |
| 3.81%, 11/01/49 (a) | 100,000 | 111,223 |
| Novartis Capital Corp. |
| 2.40%, 09/21/22 | 200,000 | 208,687 |
| 3.40%, 05/06/24 | 350,000 | 387,275 |
| 1.75%, 02/14/25 (a) | 150,000 | 157,478 |
| 3.00%, 11/20/25 (a) | 250,000 | 278,081 |
| 2.00%, 02/14/27 (a) | 200,000 | 212,933 |
| 3.10%, 05/17/27 (a) | 550,000 | 619,440 |
| 2.20%, 08/14/30 (a) | 250,000 | 268,787 |
| 3.70%, 09/21/42 | 100,000 | 121,803 |
| 4.40%, 05/06/44 | 350,000 | 471,313 |
| 4.00%, 11/20/45 (a) | 100,000 | 128,372 |
| 2.75%, 08/14/50 (a) | 200,000 | 213,586 |
| NY Society for Relief of Ruptured & Crippled Maintaining Hosp Special Surgery |
| 2.67%, 10/01/50 (a) | 250,000 | 236,384 |
| NYU Langone Hospitals |
| 4.78%, 07/01/44 | 100,000 | 127,058 |
| 4.37%, 07/01/47 (a) | 100,000 | 120,945 |
| 3.38%, 07/01/55 (a) | 200,000 | 208,976 |
| Orlando Health Obligated Group |
| 4.09%, 10/01/48 (a) | 50,000 | 56,469 |
| Partners Healthcare System, Inc. |
| 3.77%, 07/01/48 (a) | 100,000 | 115,077 |
| 4.12%, 07/01/55 | 100,000 | 124,453 |
| 3.34%, 07/01/60 (a) | 100,000 | 108,136 |
| PeaceHealth Obligated Group |
| 4.79%, 11/15/48 (a) | 100,000 | 133,433 |
| PepsiCo, Inc. |
| 3.00%, 08/25/21 | 250,000 | 256,886 |
| 1.70%, 10/06/21 (a) | 750,000 | 761,167 |
| 2.75%, 03/05/22 | 250,000 | 259,304 |
| 2.75%, 03/01/23 | 200,000 | 212,068 |
| 0.75%, 05/01/23 | 150,000 | 152,012 |
| 3.60%, 03/01/24 (a) | 300,000 | 330,142 |
| 2.25%, 03/19/25 (a) | 200,000 | 214,908 |
| 2.75%, 04/30/25 (a) | 150,000 | 164,096 |
| 3.50%, 07/17/25 (a) | 150,000 | 169,779 |
| 2.38%, 10/06/26 (a) | 250,000 | 273,975 |
| 2.63%, 03/19/27 (a) | 150,000 | 166,218 |
| 3.00%, 10/15/27 (a) | 250,000 | 282,320 |
| 2.63%, 07/29/29 (a) | 100,000 | 111,534 |
| 2.75%, 03/19/30 (a) | 350,000 | 393,967 |
| 1.63%, 05/01/30 (a) | 200,000 | 207,044 |
| 3.50%, 03/19/40 (a) | 350,000 | 413,821 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.60%, 08/13/42 | 150,000 | 183,761 |
| 4.60%, 07/17/45 (a) | 300,000 | 411,459 |
| 4.45%, 04/14/46 (a) | 300,000 | 402,798 |
| 3.45%, 10/06/46 (a) | 200,000 | 233,866 |
| 4.00%, 05/02/47 (a) | 100,000 | 126,992 |
| 3.38%, 07/29/49 (a) | 150,000 | 172,356 |
| 2.88%, 10/15/49 (a) | 150,000 | 161,756 |
| 3.63%, 03/19/50 (a) | 300,000 | 366,472 |
| 3.88%, 03/19/60 (a) | 200,000 | 257,901 |
| PerkinElmer, Inc. |
| 3.30%, 09/15/29 (a) | 150,000 | 166,386 |
| Perrigo Finance Unlimited Co. |
| 3.90%, 12/15/24 (a) | 91,000 | 98,468 |
| 4.38%, 03/15/26 (a) | 200,000 | 224,783 |
| 3.15%, 06/15/30 (a) | 250,000 | 264,199 |
| Pfizer, Inc. |
| 1.95%, 06/03/21 | 500,000 | 506,537 |
| 2.20%, 12/15/21 | 300,000 | 307,728 |
| 2.80%, 03/11/22 | 100,000 | 103,872 |
| 3.00%, 06/15/23 | 500,000 | 536,722 |
| 2.95%, 03/15/24 (a) | 250,000 | 271,080 |
| 0.80%, 05/28/25 (a) | 250,000 | 252,846 |
| 2.75%, 06/03/26 | 200,000 | 223,220 |
| 3.00%, 12/15/26 | 250,000 | 284,699 |
| 3.60%, 09/15/28 (a) | 200,000 | 236,994 |
| 3.45%, 03/15/29 (a) | 300,000 | 353,242 |
| 2.63%, 04/01/30 (a) | 300,000 | 334,566 |
| 1.70%, 05/28/30 (a) | 200,000 | 206,902 |
| 4.00%, 12/15/36 | 150,000 | 185,781 |
| 4.10%, 09/15/38 (a) | 150,000 | 189,176 |
| 3.90%, 03/15/39 (a) | 200,000 | 248,128 |
| 7.20%, 03/15/39 | 260,000 | 436,809 |
| 2.55%, 05/28/40 (a) | 200,000 | 210,736 |
| 4.30%, 06/15/43 | 100,000 | 129,782 |
| 4.40%, 05/15/44 | 180,000 | 239,544 |
| 4.13%, 12/15/46 | 250,000 | 321,622 |
| 4.20%, 09/15/48 (a) | 250,000 | 329,664 |
| 4.00%, 03/15/49 (a) | 350,000 | 448,532 |
| 2.70%, 05/28/50 (a) | 250,000 | 261,687 |
| Philip Morris International, Inc. |
| 2.90%, 11/15/21 | 230,000 | 237,109 |
| 2.38%, 08/17/22 (a) | 250,000 | 259,387 |
| 2.50%, 08/22/22 | 400,000 | 417,398 |
| 1.13%, 05/01/23 | 200,000 | 203,551 |
| 3.60%, 11/15/23 | 100,000 | 109,691 |
| 2.88%, 05/01/24 (a) | 150,000 | 161,959 |
| 3.25%, 11/10/24 | 230,000 | 255,061 |
| 1.50%, 05/01/25 (a) | 175,000 | 181,226 |
| 3.38%, 08/11/25 (a) | 330,000 | 369,296 |
| 3.13%, 03/02/28 (a) | 150,000 | 168,579 |
| 3.38%, 08/15/29 (a) | 150,000 | 171,539 |
| 2.10%, 05/01/30 (a) | 200,000 | 207,838 |
| 6.38%, 05/16/38 | 100,000 | 150,603 |
| 4.38%, 11/15/41 | 200,000 | 247,504 |
| 4.50%, 03/20/42 | 250,000 | 309,084 |
| 3.88%, 08/21/42 | 100,000 | 114,938 |
| 4.13%, 03/04/43 | 150,000 | 178,388 |
| 4.88%, 11/15/43 | 100,000 | 130,162 |
| 4.25%, 11/10/44 | 200,000 | 244,915 |
| Providence St Joseph Health Obligated Group |
| 2.53%, 10/01/29 (a) | 200,000 | 217,174 |
| 3.93%, 10/01/48 (a) | 100,000 | 118,324 |
| Quest Diagnostics, Inc. |
| 3.50%, 03/30/25 (a) | 150,000 | 167,100 |
| 3.45%, 06/01/26 (a) | 150,000 | 170,114 |
| 4.20%, 06/30/29 (a) | 100,000 | 119,140 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 2.95%, 06/30/30 (a) | 150,000 | 164,049 |
| 2.80%, 06/30/31 (a) | 200,000 | 216,800 |
| Regeneron Pharmaceuticals, Inc. |
| 1.75%, 09/15/30 (a) | 300,000 | 294,255 |
| 2.80%, 09/15/50 (a) | 250,000 | 239,931 |
| Reynolds American, Inc. |
| 4.85%, 09/15/23 | 150,000 | 167,717 |
| 4.45%, 06/12/25 (a) | 495,000 | 563,882 |
| 5.70%, 08/15/35 (a) | 150,000 | 186,794 |
| 7.25%, 06/15/37 | 250,000 | 336,240 |
| 6.15%, 09/15/43 | 100,000 | 126,205 |
| 5.85%, 08/15/45 (a) | 350,000 | 436,214 |
| Royalty Pharma PLC |
| 0.75%, 09/02/23 (c)(f) | 350,000 | 349,802 |
| 1.20%, 09/02/25 (a)(c)(f) | 350,000 | 349,611 |
| 1.75%, 09/02/27 (a)(c)(f) | 300,000 | 300,288 |
| 2.20%, 09/02/30 (a)(c)(f) | 300,000 | 297,861 |
| 3.30%, 09/02/40 (a)(c)(f) | 300,000 | 295,426 |
| 3.55%, 09/02/50 (a)(c)(f) | 300,000 | 291,034 |
| RWJ Barnabas Health, Inc. |
| 3.95%, 07/01/46 (a) | 40,000 | 45,654 |
| Sanofi |
| 3.38%, 06/19/23 (a) | 150,000 | 162,371 |
| 3.63%, 06/19/28 (a) | 250,000 | 294,879 |
| Shire Acquisitions Investments Ireland DAC |
| 2.40%, 09/23/21 (a) | 136,000 | 138,742 |
| 2.88%, 09/23/23 (a) | 525,000 | 559,149 |
| 3.20%, 09/23/26 (a) | 635,000 | 712,124 |
| Spectrum Health System Obligated Group |
| 3.49%, 07/15/49 (a) | 50,000 | 58,249 |
| Stanford Health Care |
| 3.80%, 11/15/48 (a) | 100,000 | 126,503 |
| Stryker Corp. |
| 1.15%, 06/15/25 (a) | 200,000 | 203,439 |
| 3.38%, 11/01/25 (a) | 150,000 | 168,622 |
| 3.50%, 03/15/26 (a) | 150,000 | 170,299 |
| 3.65%, 03/07/28 (a) | 150,000 | 175,153 |
| 1.95%, 06/15/30 (a) | 150,000 | 154,141 |
| 4.38%, 05/15/44 (a) | 100,000 | 125,803 |
| 4.63%, 03/15/46 (a) | 250,000 | 329,675 |
| 2.90%, 06/15/50 (a) | 200,000 | 210,162 |
| Sutter Health |
| 4.09%, 08/15/48 (a) | 65,000 | 78,358 |
| Sysco Corp. |
| 2.50%, 07/15/21 (a) | 150,000 | 152,435 |
| 2.60%, 06/12/22 | 100,000 | 103,505 |
| 3.55%, 03/15/25 (a) | 100,000 | 109,215 |
| 5.65%, 04/01/25 (a) | 100,000 | 118,357 |
| 3.75%, 10/01/25 (a) | 100,000 | 110,436 |
| 3.30%, 07/15/26 (a) | 150,000 | 162,942 |
| 3.25%, 07/15/27 (a) | 150,000 | 161,814 |
| 2.40%, 02/15/30 (a) | 200,000 | 201,424 |
| 5.95%, 04/01/30 (a) | 150,000 | 189,692 |
| 6.60%, 04/01/40 (a) | 150,000 | 200,438 |
| 4.85%, 10/01/45 (a) | 100,000 | 111,712 |
| 4.50%, 04/01/46 (a) | 150,000 | 160,647 |
| 4.45%, 03/15/48 (a) | 100,000 | 110,180 |
| 3.30%, 02/15/50 (a) | 100,000 | 93,280 |
| 6.60%, 04/01/50 (a) | 250,000 | 346,241 |
| Takeda Pharmaceutical Co., Ltd. |
| 4.00%, 11/26/21 (a) | 150,000 | 156,133 |
| 4.40%, 11/26/23 (a) | 200,000 | 223,625 |
| 5.00%, 11/26/28 (a) | 250,000 | 310,349 |
| 2.05%, 03/31/30 (a) | 500,000 | 508,975 |
| 3.03%, 07/09/40 (a) | 200,000 | 208,701 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.18%, 07/09/50 (a) | 450,000 | 462,580 |
| 3.38%, 07/09/60 (a) | 200,000 | 206,654 |
| Texas Health Resources |
| 2.33%, 11/15/50 (a) | 250,000 | 234,335 |
| The Children's Hospital Corp. |
| 4.12%, 01/01/47 (a) | 100,000 | 126,584 |
| 2.59%, 02/01/50 (a) | 80,000 | 79,748 |
| The Cleveland Clinic Foundation |
| 4.86%, 01/01/14 | 100,000 | 144,354 |
| The Clorox Co. |
| 3.50%, 12/15/24 (a) | 250,000 | 278,594 |
| 3.10%, 10/01/27 (a) | 150,000 | 169,049 |
| 3.90%, 05/15/28 (a) | 100,000 | 118,698 |
| The Coca-Cola Co. |
| 1.55%, 09/01/21 | 200,000 | 202,670 |
| 3.30%, 09/01/21 | 200,000 | 206,214 |
| 2.20%, 05/25/22 | 300,000 | 310,092 |
| 3.20%, 11/01/23 | 250,000 | 272,322 |
| 1.75%, 09/06/24 | 200,000 | 210,073 |
| 2.95%, 03/25/25 | 150,000 | 165,716 |
| 2.88%, 10/27/25 | 100,000 | 111,202 |
| 2.25%, 09/01/26 | 562,000 | 611,743 |
| 3.38%, 03/25/27 | 300,000 | 345,837 |
| 1.45%, 06/01/27 | 200,000 | 207,121 |
| 2.13%, 09/06/29 | 150,000 | 161,120 |
| 3.45%, 03/25/30 | 200,000 | 238,762 |
| 1.65%, 06/01/30 | 300,000 | 311,650 |
| 4.13%, 03/25/40 | 100,000 | 128,534 |
| 2.50%, 06/01/40 | 200,000 | 207,673 |
| 4.20%, 03/25/50 | 150,000 | 199,137 |
| 2.60%, 06/01/50 | 350,000 | 358,137 |
| 2.75%, 06/01/60 | 200,000 | 204,360 |
| The Estee Lauder Cos., Inc. |
| 2.00%, 12/01/24 (a) | 200,000 | 211,942 |
| 2.38%, 12/01/29 (a) | 100,000 | 107,640 |
| 2.60%, 04/15/30 (a) | 150,000 | 164,764 |
| 6.00%, 05/15/37 | 90,000 | 132,203 |
| 4.15%, 03/15/47 (a) | 100,000 | 128,107 |
| 3.13%, 12/01/49 (a) | 150,000 | 168,904 |
| The Hershey Co. |
| 3.38%, 05/15/23 (a) | 100,000 | 108,085 |
| 2.05%, 11/15/24 (a) | 100,000 | 105,993 |
| 0.90%, 06/01/25 (a) | 150,000 | 151,529 |
| 2.45%, 11/15/29 (a) | 100,000 | 109,209 |
| 3.13%, 11/15/49 (a) | 100,000 | 111,305 |
| 2.65%, 06/01/50 (a) | 200,000 | 207,065 |
| The JM Smucker Co. |
| 3.50%, 03/15/25 | 487,000 | 548,805 |
| 2.38%, 03/15/30 (a) | 100,000 | 104,771 |
| 4.38%, 03/15/45 | 100,000 | 120,979 |
| 3.55%, 03/15/50 (a) | 100,000 | 109,389 |
| The Johns Hopkins Health System Corp. |
| 3.84%, 05/15/46 | 150,000 | 185,416 |
| The Kroger Co. |
| 2.95%, 11/01/21 (a) | 250,000 | 256,842 |
| 2.80%, 08/01/22 (a) | 150,000 | 156,390 |
| 2.65%, 10/15/26 (a) | 150,000 | 164,194 |
| 4.50%, 01/15/29 (a) | 200,000 | 246,465 |
| 2.20%, 05/01/30 (a) | 400,000 | 419,582 |
| 5.40%, 07/15/40 (a) | 200,000 | 259,028 |
| 5.00%, 04/15/42 (a) | 100,000 | 126,650 |
| 3.88%, 10/15/46 (a) | 100,000 | 114,410 |
| 4.45%, 02/01/47 (a) | 350,000 | 436,425 |
| 4.65%, 01/15/48 (a) | 150,000 | 191,974 |
| 3.95%, 01/15/50 (a) | 150,000 | 175,628 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| The Methodist Hospital |
| 2.71%, 12/01/50 (a) | 250,000 | 250,225 |
| The New York & Presbyterian Hospital |
| 2.26%, 08/01/40 (a) | 250,000 | 247,411 |
| 4.02%, 08/01/45 | 150,000 | 192,223 |
| 2.61%, 08/01/60 (a) | 250,000 | 246,856 |
| 3.95%, 08/01/19 (a) | 100,000 | 116,088 |
| The Procter & Gamble Co. |
| 1.70%, 11/03/21 | 250,000 | 254,341 |
| 2.15%, 08/11/22 | 150,000 | 155,630 |
| 3.10%, 08/15/23 | 150,000 | 162,614 |
| 2.45%, 03/25/25 | 150,000 | 162,949 |
| 2.70%, 02/02/26 | 150,000 | 168,947 |
| 2.45%, 11/03/26 | 241,000 | 266,075 |
| 2.80%, 03/25/27 | 100,000 | 112,141 |
| 2.85%, 08/11/27 | 150,000 | 170,944 |
| 3.00%, 03/25/30 | 200,000 | 231,613 |
| 5.80%, 08/15/34 | 200,000 | 298,595 |
| 3.55%, 03/25/40 | 300,000 | 369,352 |
| 3.50%, 10/25/47 | 200,000 | 250,949 |
| 3.60%, 03/25/50 | 175,000 | 222,769 |
| The Toledo Hospital |
| 5.33%, 11/15/28 | 150,000 | 165,140 |
| 6.02%, 11/15/48 | 50,000 | 58,156 |
| Thermo Fisher Scientific, Inc. |
| 3.00%, 04/15/23 (a) | 200,000 | 212,458 |
| 4.15%, 02/01/24 (a) | 283,000 | 314,048 |
| 4.13%, 03/25/25 (a) | 150,000 | 172,221 |
| 2.95%, 09/19/26 (a) | 150,000 | 167,896 |
| 3.20%, 08/15/27 (a) | 100,000 | 112,912 |
| 2.60%, 10/01/29 (a) | 150,000 | 163,088 |
| 4.50%, 03/25/30 (a) | 250,000 | 312,179 |
| 5.30%, 02/01/44 (a) | 145,000 | 205,139 |
| 4.10%, 08/15/47 (a) | 150,000 | 192,772 |
| Trinity Health Corp. |
| 4.13%, 12/01/45 | 100,000 | 120,318 |
| Tyson Foods, Inc. |
| 4.50%, 06/15/22 (a) | 250,000 | 265,810 |
| 3.90%, 09/28/23 (a) | 150,000 | 164,644 |
| 3.95%, 08/15/24 (a) | 300,000 | 334,674 |
| 4.00%, 03/01/26 (a) | 100,000 | 115,189 |
| 3.55%, 06/02/27 (a) | 250,000 | 283,499 |
| 4.35%, 03/01/29 (a) | 150,000 | 181,184 |
| 4.88%, 08/15/34 (a) | 150,000 | 196,092 |
| 5.15%, 08/15/44 (a) | 150,000 | 198,781 |
| 4.55%, 06/02/47 (a) | 100,000 | 126,718 |
| 5.10%, 09/28/48 (a) | 200,000 | 276,273 |
| Unilever Capital Corp. |
| 3.00%, 03/07/22 | 250,000 | 260,391 |
| 2.20%, 05/05/22 (a) | 200,000 | 205,877 |
| 2.60%, 05/05/24 (a) | 200,000 | 214,486 |
| 3.38%, 03/22/25 (a) | 100,000 | 111,921 |
| 2.00%, 07/28/26 | 500,000 | 536,267 |
| 2.90%, 05/05/27 (a) | 250,000 | 282,344 |
| 3.50%, 03/22/28 (a) | 250,000 | 296,231 |
| 2.13%, 09/06/29 (a) | 150,000 | 159,960 |
| Upjohn, Inc. |
| 1.65%, 06/22/25 (a)(c) | 150,000 | 154,404 |
| 2.70%, 06/22/30 (a)(c) | 300,000 | 313,984 |
| 3.85%, 06/22/40 (a)(c) | 300,000 | 327,576 |
| 4.00%, 06/22/50 (a)(c) | 400,000 | 438,662 |
| Whirlpool Corp. |
| 4.85%, 06/15/21 | 150,000 | 155,261 |
| 3.70%, 05/01/25 | 100,000 | 112,514 |
| 4.75%, 02/26/29 (a) | 100,000 | 122,720 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 4.50%, 06/01/46 (a) | 100,000 | 119,559 |
| 4.60%, 05/15/50 (a) | 200,000 | 250,688 |
| Wyeth LLC |
| 6.50%, 02/01/34 | 150,000 | 234,571 |
| 6.00%, 02/15/36 | 100,000 | 147,046 |
| 5.95%, 04/01/37 | 500,000 | 742,355 |
| Yale-New Haven Health Services Corp. |
| 2.50%, 07/01/50 (a) | 250,000 | 244,126 |
| Zimmer Biomet Holdings, Inc. |
| 3.15%, 04/01/22 (a) | 150,000 | 155,595 |
| 3.70%, 03/19/23 (a) | 250,000 | 268,349 |
| 3.55%, 04/01/25 (a) | 350,000 | 389,349 |
| 3.05%, 01/15/26 (a) | 100,000 | 110,435 |
| 3.55%, 03/20/30 (a) | 100,000 | 111,864 |
| 4.45%, 08/15/45 (a) | 150,000 | 168,839 |
| Zoetis, Inc. |
| 3.25%, 02/01/23 (a) | 70,000 | 74,216 |
| 3.00%, 09/12/27 (a) | 200,000 | 222,935 |
| 3.90%, 08/20/28 (a) | 200,000 | 237,951 |
| 2.00%, 05/15/30 (a) | 250,000 | 260,614 |
| 4.70%, 02/01/43 (a) | 195,000 | 258,112 |
| 4.45%, 08/20/48 (a) | 100,000 | 131,852 |
| 3.00%, 05/15/50 (a) | 200,000 | 217,064 |
| | | 213,665,079 |
| Energy 2.2% |
| Baker Hughes a GE Co., LLC/Baker Hughes Co-Obligor, Inc. |
| 2.77%, 12/15/22 (a) | 200,000 | 209,810 |
| 3.34%, 12/15/27 (a) | 200,000 | 218,386 |
| 3.14%, 11/07/29 (a) | 100,000 | 107,216 |
| 4.49%, 05/01/30 (a) | 200,000 | 235,264 |
| 4.08%, 12/15/47 (a) | 300,000 | 316,482 |
| Baker Hughes Holdings LLC |
| 5.13%, 09/15/40 | 150,000 | 183,965 |
| Boardwalk Pipelines LP |
| 4.95%, 12/15/24 (a) | 350,000 | 384,008 |
| 4.80%, 05/03/29 (a) | 100,000 | 111,010 |
| 3.40%, 02/15/31 (a) | 250,000 | 253,029 |
| BP Capital Markets America, Inc. |
| 2.11%, 09/16/21 (a) | 500,000 | 508,185 |
| 2.52%, 09/19/22 (a) | 150,000 | 155,993 |
| 2.94%, 04/06/23 | 200,000 | 212,469 |
| 2.75%, 05/10/23 | 300,000 | 318,843 |
| 3.22%, 11/28/23 (a) | 250,000 | 269,679 |
| 3.79%, 02/06/24 (a) | 150,000 | 165,091 |
| 3.19%, 04/06/25 (a) | 250,000 | 275,992 |
| 3.41%, 02/11/26 (a) | 150,000 | 168,259 |
| 3.12%, 05/04/26 (a) | 200,000 | 221,842 |
| 3.02%, 01/16/27 (a) | 100,000 | 109,787 |
| 3.59%, 04/14/27 (a) | 200,000 | 225,829 |
| 3.94%, 09/21/28 (a) | 150,000 | 175,909 |
| 4.23%, 11/06/28 (a) | 250,000 | 298,796 |
| 3.63%, 04/06/30 (a) | 300,000 | 345,268 |
| 1.75%, 08/10/30 (a) | 350,000 | 348,150 |
| 3.00%, 02/24/50 (a) | 400,000 | 395,344 |
| 2.77%, 11/10/50 (a) | 500,000 | 472,357 |
| BP Capital Markets PLC |
| 3.06%, 03/17/22 | 250,000 | 260,420 |
| 2.50%, 11/06/22 | 150,000 | 156,520 |
| 3.81%, 02/10/24 | 250,000 | 275,874 |
| 3.54%, 11/04/24 | 200,000 | 221,926 |
| 3.51%, 03/17/25 | 100,000 | 111,853 |
| 3.28%, 09/19/27 (a) | 650,000 | 727,035 |
| 3.72%, 11/28/28 (a) | 150,000 | 173,272 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Burlington Resources LLC |
| 5.95%, 10/15/36 | 100,000 | 140,291 |
| Canadian Natural Resources Ltd. |
| 2.95%, 01/15/23 (a) | 250,000 | 260,962 |
| 3.80%, 04/15/24 (a) | 100,000 | 107,955 |
| 3.90%, 02/01/25 (a) | 130,000 | 142,301 |
| 2.05%, 07/15/25 (a) | 250,000 | 256,290 |
| 3.85%, 06/01/27 (a) | 100,000 | 108,656 |
| 6.45%, 06/30/33 | 295,000 | 371,704 |
| 6.25%, 03/15/38 | 330,000 | 410,350 |
| 4.95%, 06/01/47 (a) | 100,000 | 116,820 |
| Cheniere Corpus Christi Holdings LLC |
| 7.00%, 06/30/24 (a) | 200,000 | 233,155 |
| 5.88%, 03/31/25 (a) | 300,000 | 346,443 |
| 5.13%, 06/30/27 (a) | 300,000 | 338,475 |
| 3.70%, 11/15/29 (a)(c) | 200,000 | 211,780 |
| Chevron Corp. |
| 2.41%, 03/03/22 (a) | 150,000 | 154,293 |
| 2.36%, 12/05/22 (a) | 600,000 | 624,567 |
| 1.14%, 05/11/23 | 250,000 | 255,290 |
| 3.19%, 06/24/23 (a) | 750,000 | 804,562 |
| 1.55%, 05/11/25 (a) | 450,000 | 468,745 |
| 2.95%, 05/16/26 (a) | 500,000 | 557,460 |
| 2.24%, 05/11/30 (a) | 200,000 | 214,068 |
| 2.98%, 05/11/40 (a) | 200,000 | 218,222 |
| 3.08%, 05/11/50 (a) | 200,000 | 218,243 |
| Chevron USA, Inc. |
| 0.33%, 08/12/22 | 200,000 | 200,239 |
| 0.43%, 08/11/23 | 200,000 | 200,501 |
| 0.69%, 08/12/25 (a) | 100,000 | 100,264 |
| 1.02%, 08/12/27 (a) | 250,000 | 249,684 |
| 2.34%, 08/12/50 (a) | 250,000 | 238,476 |
| Cimarex Energy Co. |
| 4.38%, 06/01/24 (a) | 180,000 | 193,852 |
| 4.38%, 03/15/29 (a) | 100,000 | 106,300 |
| Columbia Pipeline Group, Inc. |
| 4.50%, 06/01/25 (a) | 200,000 | 232,920 |
| 5.80%, 06/01/45 (a) | 100,000 | 127,634 |
| Concho Resources, Inc. |
| 4.38%, 01/15/25 (a) | 200,000 | 206,695 |
| 3.75%, 10/01/27 (a) | 150,000 | 166,461 |
| 4.30%, 08/15/28 (a) | 200,000 | 226,490 |
| 2.40%, 02/15/31 (a) | 250,000 | 245,325 |
| 4.88%, 10/01/47 (a) | 100,000 | 116,316 |
| 4.85%, 08/15/48 (a) | 100,000 | 116,123 |
| Conoco Funding Co. |
| 7.25%, 10/15/31 | 150,000 | 225,068 |
| ConocoPhillips Co. |
| 3.35%, 11/15/24 (a) | 100,000 | 110,604 |
| 4.95%, 03/15/26 (a) | 450,000 | 541,888 |
| 6.95%, 04/15/29 | 400,000 | 561,142 |
| 6.50%, 02/01/39 | 800,000 | 1,209,428 |
| 4.30%, 11/15/44 (a) | 150,000 | 189,859 |
| 5.95%, 03/15/46 (a) | 100,000 | 151,804 |
| Devon Energy Corp. |
| 5.85%, 12/15/25 (a) | 150,000 | 172,143 |
| 7.95%, 04/15/32 | 100,000 | 131,148 |
| 5.60%, 07/15/41 (a) | 400,000 | 422,670 |
| 4.75%, 05/15/42 (a) | 100,000 | 96,273 |
| 5.00%, 06/15/45 (a) | 100,000 | 99,984 |
| Diamondback Energy, Inc. |
| 2.88%, 12/01/24 (a) | 100,000 | 103,263 |
| 4.75%, 05/31/25 (a) | 150,000 | 165,615 |
| 5.38%, 05/31/25 (a) | 150,000 | 156,325 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.25%, 12/01/26 (a) | 200,000 | 206,531 |
| 3.50%, 12/01/29 (a) | 150,000 | 152,776 |
| Dominion Energy Gas Holdings LLC |
| 3.55%, 11/01/23 (a) | 200,000 | 216,974 |
| 2.50%, 11/15/24 (a) | 100,000 | 107,177 |
| 3.00%, 11/15/29 (a) | 200,000 | 221,547 |
| 4.80%, 11/01/43 (a) | 100,000 | 126,104 |
| 3.90%, 11/15/49 (a) | 100,000 | 117,098 |
| Enable Midstream Partners LP |
| 4.95%, 05/15/28 (a) | 300,000 | 298,438 |
| 4.15%, 09/15/29 (a) | 150,000 | 139,973 |
| 5.00%, 05/15/44 (a) | 75,000 | 65,794 |
| Enbridge Energy Partners LP |
| 4.20%, 09/15/21 (a) | 145,000 | 149,314 |
| 5.50%, 09/15/40 (a) | 180,000 | 218,936 |
| 7.38%, 10/15/45 (a) | 100,000 | 149,708 |
| Enbridge, Inc. |
| 4.00%, 10/01/23 (a) | 250,000 | 272,576 |
| 3.70%, 07/15/27 (a) | 550,000 | 615,178 |
| 3.13%, 11/15/29 (a) | 250,000 | 270,041 |
| 4.50%, 06/10/44 (a) | 200,000 | 230,194 |
| 5.50%, 12/01/46 (a) | 100,000 | 132,938 |
| 4.00%, 11/15/49 (a) | 100,000 | 110,458 |
| Energy Transfer Operating LP |
| 4.65%, 06/01/21 (a) | 250,000 | 254,622 |
| 5.20%, 02/01/22 (a) | 200,000 | 208,636 |
| 3.60%, 02/01/23 (a) | 150,000 | 155,563 |
| 5.88%, 01/15/24 (a) | 250,000 | 277,586 |
| 4.05%, 03/15/25 (a) | 150,000 | 160,157 |
| 2.90%, 05/15/25 (a) | 250,000 | 257,295 |
| 4.75%, 01/15/26 (a) | 150,000 | 163,660 |
| 4.20%, 04/15/27 (a) | 100,000 | 104,706 |
| 5.50%, 06/01/27 (a) | 150,000 | 167,618 |
| 4.95%, 06/15/28 (a) | 150,000 | 161,277 |
| 5.25%, 04/15/29 (a) | 150,000 | 164,235 |
| 3.75%, 05/15/30 (a) | 300,000 | 298,348 |
| 4.90%, 03/15/35 (a) | 230,000 | 231,831 |
| 5.80%, 06/15/38 (a) | 150,000 | 152,195 |
| 7.50%, 07/01/38 | 150,000 | 175,897 |
| 6.05%, 06/01/41 (a) | 100,000 | 100,871 |
| 6.50%, 02/01/42 (a) | 225,000 | 241,245 |
| 5.95%, 10/01/43 (a) | 200,000 | 199,104 |
| 5.15%, 03/15/45 (a) | 250,000 | 238,192 |
| 6.13%, 12/15/45 (a) | 265,000 | 270,697 |
| 5.30%, 04/15/47 (a) | 100,000 | 95,811 |
| 6.00%, 06/15/48 (a) | 150,000 | 155,702 |
| 6.25%, 04/15/49 (a) | 250,000 | 263,389 |
| 5.00%, 05/15/50 (a) | 350,000 | 335,832 |
| Energy Transfer Partners LP/Regency Energy Finance Corp. |
| 5.88%, 03/01/22 (a) | 200,000 | 210,720 |
| 5.00%, 10/01/22 (a) | 100,000 | 105,947 |
| 4.50%, 11/01/23 (a) | 150,000 | 160,672 |
| 1.75%, 01/22/26 (a) | 300,000 | 314,034 |
| Enterprise Products Operating LLC |
| 3.50%, 02/01/22 | 200,000 | 208,417 |
| 3.35%, 03/15/23 (a) | 150,000 | 159,523 |
| 3.90%, 02/15/24 (a) | 195,000 | 214,289 |
| 3.75%, 02/15/25 (a) | 230,000 | 257,194 |
| 3.70%, 02/15/26 (a) | 250,000 | 283,439 |
| 3.95%, 02/15/27 (a) | 150,000 | 172,683 |
| 4.15%, 10/16/28 (a) | 250,000 | 293,911 |
| 3.13%, 07/31/29 (a) | 200,000 | 219,273 |
| 2.80%, 01/31/30 (a) | 350,000 | 374,586 |
| 7.55%, 04/15/38 | 100,000 | 140,172 |
| 6.13%, 10/15/39 | 350,000 | 455,562 |
| 5.95%, 02/01/41 | 100,000 | 128,620 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 4.85%, 08/15/42 (a) | 100,000 | 115,742 |
| 4.45%, 02/15/43 (a) | 200,000 | 221,474 |
| 4.85%, 03/15/44 (a) | 300,000 | 348,519 |
| 5.10%, 02/15/45 (a) | 300,000 | 359,494 |
| 4.90%, 05/15/46 (a) | 500,000 | 584,740 |
| 4.25%, 02/15/48 (a) | 200,000 | 216,694 |
| 4.80%, 02/01/49 (a) | 150,000 | 177,140 |
| 4.20%, 01/31/50 (a) | 250,000 | 273,462 |
| 3.70%, 01/31/51 (a) | 200,000 | 205,090 |
| 3.20%, 02/15/52 (a) | 250,000 | 237,754 |
| 3.95%, 01/31/60 (a) | 150,000 | 152,794 |
| 4.88%, 08/16/77 (a)(b) | 100,000 | 89,266 |
| 5.25%, 08/16/77 (a)(b) | 100,000 | 96,180 |
| 5.38%, 02/15/78 (a)(b) | 100,000 | 91,077 |
| EOG Resources, Inc. |
| 2.63%, 03/15/23 (a) | 110,000 | 115,712 |
| 3.15%, 04/01/25 (a) | 100,000 | 110,176 |
| 4.15%, 01/15/26 (a) | 100,000 | 115,956 |
| 4.38%, 04/15/30 (a) | 150,000 | 180,164 |
| 3.90%, 04/01/35 (a) | 174,000 | 205,419 |
| 4.95%, 04/15/50 (a) | 150,000 | 192,307 |
| Exxon Mobil Corp. |
| 2.40%, 03/06/22 (a) | 150,000 | 154,299 |
| 1.90%, 08/16/22 | 150,000 | 154,876 |
| 2.73%, 03/01/23 (a) | 350,000 | 369,264 |
| 1.57%, 04/15/23 | 500,000 | 516,020 |
| 2.02%, 08/16/24 (a) | 250,000 | 263,919 |
| 2.71%, 03/06/25 (a) | 300,000 | 325,581 |
| 2.99%, 03/19/25 (a) | 700,000 | 769,821 |
| 3.04%, 03/01/26 (a) | 500,000 | 557,617 |
| 2.28%, 08/16/26 (a) | 150,000 | 162,445 |
| 3.29%, 03/19/27 (a) | 150,000 | 170,803 |
| 2.44%, 08/16/29 (a) | 200,000 | 216,406 |
| 3.48%, 03/19/30 (a) | 600,000 | 697,383 |
| 2.61%, 10/15/30 (a) | 200,000 | 218,238 |
| 3.00%, 08/16/39 (a) | 150,000 | 160,998 |
| 4.23%, 03/19/40 (a) | 450,000 | 560,277 |
| 3.57%, 03/06/45 (a) | 230,000 | 259,213 |
| 4.11%, 03/01/46 (a) | 350,000 | 424,538 |
| 3.10%, 08/16/49 (a) | 300,000 | 315,709 |
| 4.33%, 03/19/50 (a) | 500,000 | 639,722 |
| 3.45%, 04/15/51 (a) | 500,000 | 562,195 |
| Halliburton Co. |
| 3.50%, 08/01/23 (a) | 200,000 | 213,393 |
| 3.80%, 11/15/25 (a) | 250,000 | 274,239 |
| 2.92%, 03/01/30 (a) | 250,000 | 253,720 |
| 4.85%, 11/15/35 (a) | 150,000 | 167,092 |
| 6.70%, 09/15/38 | 100,000 | 127,920 |
| 7.45%, 09/15/39 | 200,000 | 273,655 |
| 4.50%, 11/15/41 (a) | 300,000 | 307,023 |
| 4.75%, 08/01/43 (a) | 200,000 | 210,863 |
| 5.00%, 11/15/45 (a) | 230,000 | 253,639 |
| Helmerich & Payne, Inc. |
| 4.65%, 03/15/25 (a) | 180,000 | 198,258 |
| Hess Corp. |
| 4.30%, 04/01/27 (a) | 250,000 | 266,562 |
| 7.88%, 10/01/29 | 100,000 | 126,090 |
| 7.30%, 08/15/31 | 100,000 | 123,924 |
| 6.00%, 01/15/40 | 100,000 | 115,502 |
| 5.80%, 04/01/47 (a) | 450,000 | 515,803 |
| HollyFrontier Corp. |
| 5.88%, 04/01/26 (a) | 150,000 | 165,191 |
| Husky Energy, Inc. |
| 4.00%, 04/15/24 (a) | 200,000 | 211,830 |
| 4.40%, 04/15/29 (a) | 200,000 | 212,971 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Kinder Morgan Energy Partners LP |
| 5.00%, 10/01/21 (a) | 100,000 | 103,583 |
| 3.95%, 09/01/22 (a) | 450,000 | 477,236 |
| 4.15%, 02/01/24 (a) | 100,000 | 109,799 |
| 4.30%, 05/01/24 (a) | 296,000 | 328,439 |
| 7.30%, 08/15/33 | 200,000 | 277,126 |
| 5.80%, 03/15/35 | 150,000 | 185,225 |
| 6.95%, 01/15/38 | 330,000 | 441,301 |
| 6.55%, 09/15/40 | 150,000 | 192,651 |
| 7.50%, 11/15/40 | 100,000 | 138,077 |
| 5.00%, 08/15/42 (a) | 100,000 | 113,151 |
| 4.70%, 11/01/42 (a) | 195,000 | 214,571 |
| 5.50%, 03/01/44 (a) | 200,000 | 240,655 |
| 5.40%, 09/01/44 (a) | 195,000 | 235,191 |
| Kinder Morgan, Inc. |
| 3.15%, 01/15/23 (a) | 150,000 | 158,377 |
| 4.30%, 06/01/25 (a) | 395,000 | 448,868 |
| 4.30%, 03/01/28 (a) | 200,000 | 232,215 |
| 2.00%, 02/15/31 (a) | 250,000 | 244,992 |
| 7.75%, 01/15/32 | 150,000 | 216,997 |
| 5.30%, 12/01/34 (a) | 250,000 | 304,645 |
| 5.55%, 06/01/45 (a) | 330,000 | 408,566 |
| 5.05%, 02/15/46 (a) | 200,000 | 236,356 |
| 5.20%, 03/01/48 (a) | 100,000 | 123,015 |
| 3.25%, 08/01/50 (a) | 250,000 | 235,966 |
| Magellan Midstream Partners LP |
| 3.25%, 06/01/30 (a) | 200,000 | 216,454 |
| 5.15%, 10/15/43 (a) | 250,000 | 296,570 |
| 4.85%, 02/01/49 (a) | 150,000 | 178,119 |
| Marathon Oil Corp. |
| 2.80%, 11/01/22 (a) | 100,000 | 102,449 |
| 3.85%, 06/01/25 (a) | 200,000 | 208,329 |
| 4.40%, 07/15/27 (a) | 300,000 | 307,642 |
| 6.80%, 03/15/32 | 100,000 | 110,336 |
| 6.60%, 10/01/37 | 150,000 | 161,707 |
| Marathon Petroleum Corp. |
| 4.50%, 05/01/23 (a) | 200,000 | 217,705 |
| 4.75%, 12/15/23 (a) | 150,000 | 166,606 |
| 3.63%, 09/15/24 (a) | 230,000 | 248,677 |
| 4.70%, 05/01/25 (a) | 200,000 | 228,291 |
| 5.13%, 12/15/26 (a) | 100,000 | 118,789 |
| 3.80%, 04/01/28 (a) | 100,000 | 110,068 |
| 6.50%, 03/01/41 (a) | 100,000 | 128,538 |
| 4.75%, 09/15/44 (a) | 150,000 | 167,484 |
| 4.50%, 04/01/48 (a) | 150,000 | 162,502 |
| 5.00%, 09/15/54 (a) | 250,000 | 276,659 |
| MPLX LP |
| 3.50%, 12/01/22 (a) | 150,000 | 157,276 |
| 4.50%, 07/15/23 (a) | 200,000 | 217,071 |
| 4.88%, 12/01/24 (a) | 300,000 | 338,691 |
| 5.25%, 01/15/25 (a) | 150,000 | 156,584 |
| 4.00%, 02/15/25 (a) | 100,000 | 109,526 |
| 4.88%, 06/01/25 (a) | 200,000 | 228,422 |
| 1.75%, 03/01/26 (a) | 250,000 | 250,081 |
| 4.13%, 03/01/27 (a) | 200,000 | 222,067 |
| 4.25%, 12/01/27 (a) | 100,000 | 111,746 |
| 4.00%, 03/15/28 (a) | 150,000 | 165,226 |
| 4.80%, 02/15/29 (a) | 150,000 | 173,842 |
| 2.65%, 08/15/30 (a) | 250,000 | 248,675 |
| 4.50%, 04/15/38 (a) | 350,000 | 370,680 |
| 5.20%, 03/01/47 (a) | 250,000 | 282,824 |
| 5.20%, 12/01/47 (a) | 100,000 | 112,150 |
| 4.70%, 04/15/48 (a) | 200,000 | 214,921 |
| 5.50%, 02/15/49 (a) | 250,000 | 297,051 |
| 4.90%, 04/15/58 (a) | 100,000 | 103,470 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| National Fuel Gas Co. |
| 5.20%, 07/15/25 (a) | 100,000 | 111,004 |
| 5.50%, 01/15/26 (a) | 100,000 | 109,743 |
| 3.95%, 09/15/27 (a) | 100,000 | 102,205 |
| 4.75%, 09/01/28 (a) | 100,000 | 105,069 |
| National Oilwell Varco, Inc. |
| 3.60%, 12/01/29 (a) | 100,000 | 98,721 |
| 3.95%, 12/01/42 (a) | 150,000 | 140,821 |
| Newfield Exploration Co. |
| 5.75%, 01/30/22 | 100,000 | 102,621 |
| 5.63%, 07/01/24 | 200,000 | 206,467 |
| Noble Energy, Inc. |
| 3.90%, 11/15/24 (a) | 200,000 | 222,649 |
| 3.85%, 01/15/28 (a) | 200,000 | 227,480 |
| 3.25%, 10/15/29 (a) | 100,000 | 111,111 |
| 6.00%, 03/01/41 (a) | 150,000 | 209,164 |
| 5.25%, 11/15/43 (a) | 100,000 | 134,314 |
| 5.05%, 11/15/44 (a) | 150,000 | 197,400 |
| 4.95%, 08/15/47 (a) | 100,000 | 130,995 |
| 4.20%, 10/15/49 (a) | 100,000 | 121,369 |
| Northwest Pipeline LLC |
| 4.00%, 04/01/27 (a) | 200,000 | 221,266 |
| ONEOK Partners LP |
| 3.38%, 10/01/22 (a) | 100,000 | 104,233 |
| 4.90%, 03/15/25 (a) | 150,000 | 164,635 |
| 6.65%, 10/01/36 | 250,000 | 291,261 |
| 6.13%, 02/01/41 (a) | 150,000 | 161,787 |
| ONEOK, Inc. |
| 4.25%, 02/01/22 (a) | 150,000 | 155,591 |
| 7.50%, 09/01/23 (a) | 150,000 | 173,035 |
| 2.75%, 09/01/24 (a) | 150,000 | 155,107 |
| 2.20%, 09/15/25 (a) | 50,000 | 49,617 |
| 5.85%, 01/15/26 (a) | 155,000 | 179,370 |
| 4.55%, 07/15/28 (a) | 150,000 | 159,613 |
| 3.40%, 09/01/29 (a) | 150,000 | 149,513 |
| 3.10%, 03/15/30 (a) | 200,000 | 192,120 |
| 6.35%, 01/15/31 (a) | 220,000 | 261,799 |
| 5.20%, 07/15/48 (a) | 250,000 | 246,126 |
| 4.45%, 09/01/49 (a) | 150,000 | 135,613 |
| 7.15%, 01/15/51 (a) | 200,000 | 244,171 |
| Ovintiv, Inc. |
| 3.90%, 11/15/21 (a) | 150,000 | 151,989 |
| 6.50%, 08/15/34 | 200,000 | 198,784 |
| 6.63%, 08/15/37 | 250,000 | 241,326 |
| 6.50%, 02/01/38 | 100,000 | 95,836 |
| Phillips 66 |
| 4.30%, 04/01/22 | 300,000 | 318,042 |
| 3.85%, 04/09/25 (a) | 500,000 | 560,375 |
| 3.90%, 03/15/28 (a) | 150,000 | 170,897 |
| 2.15%, 12/15/30 (a) | 250,000 | 246,422 |
| 4.65%, 11/15/34 (a) | 150,000 | 184,597 |
| 5.88%, 05/01/42 | 100,000 | 134,854 |
| 4.88%, 11/15/44 (a) | 350,000 | 425,889 |
| Phillips 66 Partners LP |
| 2.45%, 12/15/24 (a) | 150,000 | 156,065 |
| 3.61%, 02/15/25 (a) | 230,000 | 247,811 |
| 3.55%, 10/01/26 (a) | 150,000 | 162,821 |
| 3.75%, 03/01/28 (a) | 100,000 | 105,674 |
| 3.15%, 12/15/29 (a) | 100,000 | 101,187 |
| 4.68%, 02/15/45 (a) | 100,000 | 105,281 |
| 4.90%, 10/01/46 (a) | 100,000 | 108,152 |
| Pioneer Natural Resources Co. |
| 4.45%, 01/15/26 (a) | 100,000 | 116,412 |
| 1.90%, 08/15/30 (a) | 200,000 | 194,603 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Plains All American Pipeline LP/PAA Finance Corp. |
| 3.65%, 06/01/22 (a) | 150,000 | 154,233 |
| 2.85%, 01/31/23 (a) | 250,000 | 256,140 |
| 4.50%, 12/15/26 (a) | 230,000 | 250,340 |
| 3.55%, 12/15/29 (a) | 150,000 | 149,504 |
| 3.80%, 09/15/30 (a) | 250,000 | 252,361 |
| 6.65%, 01/15/37 | 250,000 | 280,695 |
| 5.15%, 06/01/42 (a) | 100,000 | 97,317 |
| 4.30%, 01/31/43 (a) | 100,000 | 87,342 |
| 4.70%, 06/15/44 (a) | 100,000 | 93,458 |
| 4.90%, 02/15/45 (a) | 100,000 | 95,692 |
| Sabine Pass Liquefaction LLC |
| 6.25%, 03/15/22 (a) | 200,000 | 213,513 |
| 5.63%, 04/15/23 (a) | 300,000 | 331,558 |
| 5.75%, 05/15/24 (a) | 380,000 | 434,849 |
| 5.63%, 03/01/25 (a) | 350,000 | 407,918 |
| 5.88%, 06/30/26 (a) | 200,000 | 240,821 |
| 5.00%, 03/15/27 (a) | 200,000 | 228,217 |
| 4.20%, 03/15/28 (a) | 350,000 | 385,777 |
| 4.50%, 05/15/30 (a) | 375,000 | 429,617 |
| Schlumberger Investment S.A. |
| 3.65%, 12/01/23 (a) | 200,000 | 217,063 |
| 2.65%, 06/26/30 (a) | 450,000 | 461,020 |
| Shell International Finance BV |
| 1.75%, 09/12/21 | 250,000 | 253,810 |
| 2.38%, 08/21/22 | 150,000 | 156,028 |
| 3.40%, 08/12/23 | 150,000 | 163,071 |
| 3.50%, 11/13/23 (a) | 250,000 | 273,691 |
| 2.00%, 11/07/24 (a) | 200,000 | 211,212 |
| 2.38%, 04/06/25 (a) | 300,000 | 322,422 |
| 3.25%, 05/11/25 | 430,000 | 480,411 |
| 2.88%, 05/10/26 | 150,000 | 167,081 |
| 2.50%, 09/12/26 | 250,000 | 274,055 |
| 3.88%, 11/13/28 (a) | 450,000 | 530,865 |
| 2.38%, 11/07/29 (a) | 400,000 | 426,172 |
| 2.75%, 04/06/30 (a) | 250,000 | 275,197 |
| 4.13%, 05/11/35 | 400,000 | 494,664 |
| 6.38%, 12/15/38 | 500,000 | 757,342 |
| 3.63%, 08/21/42 | 230,000 | 258,882 |
| 4.55%, 08/12/43 | 150,000 | 189,228 |
| 4.38%, 05/11/45 | 430,000 | 535,187 |
| 4.00%, 05/10/46 | 430,000 | 511,883 |
| 3.75%, 09/12/46 | 200,000 | 230,785 |
| 3.13%, 11/07/49 (a) | 300,000 | 316,530 |
| 3.25%, 04/06/50 (a) | 250,000 | 270,032 |
| Spectra Energy Partners LP |
| 4.75%, 03/15/24 (a) | 300,000 | 337,104 |
| 3.50%, 03/15/25 (a) | 200,000 | 219,763 |
| 4.50%, 03/15/45 (a) | 150,000 | 173,029 |
| Suncor Energy, Inc. |
| 2.80%, 05/15/23 | 300,000 | 316,303 |
| 3.60%, 12/01/24 (a) | 200,000 | 220,692 |
| 3.10%, 05/15/25 (a) | 100,000 | 109,961 |
| 5.35%, 07/15/33 | 100,000 | 115,560 |
| 6.80%, 05/15/38 | 100,000 | 135,514 |
| 6.50%, 06/15/38 | 500,000 | 663,757 |
| 6.85%, 06/01/39 | 200,000 | 271,787 |
| 4.00%, 11/15/47 (a) | 100,000 | 109,003 |
| Sunoco Logistics Partners Operations LP |
| 3.45%, 01/15/23 (a) | 150,000 | 155,279 |
| 4.25%, 04/01/24 (a) | 350,000 | 372,473 |
| 3.90%, 07/15/26 (a) | 100,000 | 104,914 |
| 4.00%, 10/01/27 (a) | 200,000 | 205,613 |
| 5.30%, 04/01/44 (a) | 200,000 | 188,903 |
| 5.35%, 05/15/45 (a) | 100,000 | 95,477 |
| 5.40%, 10/01/47 (a) | 350,000 | 342,174 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| TC PipeLines LP |
| 4.38%, 03/13/25 (a) | 150,000 | 163,019 |
| Tennessee Gas Pipeline Co., LLC |
| 7.00%, 10/15/28 | 200,000 | 257,995 |
| The Williams Cos., Inc. |
| 3.60%, 03/15/22 (a) | 295,000 | 306,685 |
| 3.70%, 01/15/23 (a) | 150,000 | 159,298 |
| 4.50%, 11/15/23 (a) | 150,000 | 165,088 |
| 4.30%, 03/04/24 (a) | 850,000 | 934,294 |
| 4.55%, 06/24/24 (a) | 100,000 | 112,291 |
| 3.90%, 01/15/25 (a) | 100,000 | 110,225 |
| 3.75%, 06/15/27 (a) | 200,000 | 221,022 |
| 7.50%, 01/15/31 | 150,000 | 198,355 |
| 8.75%, 03/15/32 | 250,000 | 362,167 |
| 6.30%, 04/15/40 | 300,000 | 380,463 |
| 5.80%, 11/15/43 (a) | 22,000 | 26,171 |
| 5.40%, 03/04/44 (a) | 100,000 | 116,137 |
| 5.75%, 06/24/44 (a) | 100,000 | 119,807 |
| 4.90%, 01/15/45 (a) | 200,000 | 225,947 |
| 5.10%, 09/15/45 (a) | 100,000 | 117,481 |
| 4.85%, 03/01/48 (a) | 150,000 | 175,145 |
| Total Capital Canada Ltd. |
| 2.75%, 07/15/23 | 150,000 | 160,480 |
| Total Capital International S.A. |
| 2.75%, 06/19/21 | 250,000 | 254,969 |
| 2.88%, 02/17/22 | 250,000 | 259,274 |
| 3.70%, 01/15/24 | 200,000 | 220,865 |
| 3.75%, 04/10/24 | 400,000 | 444,908 |
| 2.43%, 01/10/25 (a) | 150,000 | 160,717 |
| 3.46%, 02/19/29 (a) | 300,000 | 346,008 |
| 2.83%, 01/10/30 (a) | 200,000 | 223,023 |
| 2.99%, 06/29/41 (a) | 200,000 | 210,275 |
| 3.46%, 07/12/49 (a) | 200,000 | 223,403 |
| 3.13%, 05/29/50 (a) | 450,000 | 475,029 |
| 3.39%, 06/29/60 (a) | 200,000 | 220,402 |
| Total Capital S.A. |
| 4.25%, 12/15/21 | 200,000 | 210,260 |
| 3.88%, 10/11/28 | 150,000 | 178,272 |
| TransCanada PipeLines Ltd. |
| 2.50%, 08/01/22 | 250,000 | 259,499 |
| 3.75%, 10/16/23 (a) | 100,000 | 108,883 |
| 4.88%, 01/15/26 (a) | 200,000 | 237,590 |
| 4.25%, 05/15/28 (a) | 450,000 | 525,841 |
| 4.10%, 04/15/30 (a) | 200,000 | 233,469 |
| 4.63%, 03/01/34 (a) | 150,000 | 181,087 |
| 5.60%, 03/31/34 | 100,000 | 128,420 |
| 5.85%, 03/15/36 | 100,000 | 133,839 |
| 6.20%, 10/15/37 | 300,000 | 407,047 |
| 4.75%, 05/15/38 (a) | 100,000 | 120,545 |
| 6.10%, 06/01/40 | 150,000 | 206,390 |
| 5.00%, 10/16/43 (a) | 200,000 | 247,363 |
| 4.88%, 05/15/48 (a) | 250,000 | 321,025 |
| 5.10%, 03/15/49 (a) | 250,000 | 334,254 |
| Transcontinental Gas Pipe Line Co. LLC |
| 3.25%, 05/15/30 (a)(c) | 200,000 | 218,287 |
| 4.60%, 03/15/48 (a) | 100,000 | 118,069 |
| 3.95%, 05/15/50 (a)(c) | 100,000 | 108,597 |
| Valero Energy Corp. |
| 2.85%, 04/15/25 (a) | 350,000 | 374,712 |
| 3.40%, 09/15/26 (a) | 400,000 | 441,314 |
| 4.00%, 04/01/29 (a) | 150,000 | 168,808 |
| 7.50%, 04/15/32 | 150,000 | 215,974 |
| 6.63%, 06/15/37 | 200,000 | 269,805 |
| 4.90%, 03/15/45 | 230,000 | 273,245 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Valero Energy Partners LP |
| 4.50%, 03/15/28 (a) | 150,000 | 172,583 |
| | | 102,267,061 |
| Industrial Other 0.1% |
| California Institute of Technology |
| 3.65%, 09/01/19 (a) | 200,000 | 223,452 |
| CBRE Services, Inc. |
| 4.88%, 03/01/26 (a) | 100,000 | 116,202 |
| Cintas Corp. No. 2 |
| 3.25%, 06/01/22 (a) | 100,000 | 104,144 |
| 3.70%, 04/01/27 (a) | 300,000 | 343,747 |
| Duke University |
| 2.68%, 10/01/44 | 100,000 | 104,753 |
| 2.83%, 10/01/55 | 100,000 | 107,815 |
| Johns Hopkins University |
| 4.08%, 07/01/53 | 100,000 | 134,466 |
| Massachusetts Institute of Technology |
| 2.99%, 07/01/50 (a) | 100,000 | 117,571 |
| 5.60%, 07/01/11 | 150,000 | 268,189 |
| 4.68%, 07/01/14 | 100,000 | 150,077 |
| Northeastern University |
| 2.89%, 10/01/50 | 150,000 | 157,984 |
| Northwestern University |
| 4.64%, 12/01/44 | 100,000 | 137,398 |
| 2.64%, 12/01/50 (a) | 100,000 | 104,895 |
| President & Fellows of Harvard College |
| 3.15%, 07/15/46 (a) | 100,000 | 115,296 |
| 3.30%, 07/15/56 (a) | 100,000 | 122,826 |
| Princeton University |
| 5.70%, 03/01/39 | 100,000 | 156,157 |
| Steelcase, Inc. |
| 5.13%, 01/18/29 (a) | 100,000 | 109,340 |
| The American University |
| 3.67%, 04/01/49 | 100,000 | 113,819 |
| The George Washington University |
| 4.87%, 09/15/45 | 50,000 | 68,990 |
| 4.13%, 09/15/48 (a) | 150,000 | 198,243 |
| The Georgetown University |
| 4.32%, 04/01/49 (a) | 50,000 | 65,354 |
| 2.94%, 04/01/50 | 100,000 | 102,892 |
| 5.22%, 10/01/18 (a) | 50,000 | 72,595 |
| The Leland Stanford Junior University |
| 3.65%, 05/01/48 (a) | 100,000 | 126,836 |
| The Trustees of the University of Pennsylvania |
| 2.40%, 10/01/50 (a) | 150,000 | 151,268 |
| 4.67%, 09/01/12 | 50,000 | 73,590 |
| Trustees of Boston College |
| 3.13%, 07/01/52 | 150,000 | 171,780 |
| University of Notre Dame du Lac |
| 3.39%, 02/15/48 (a) | 100,000 | 121,527 |
| University of Southern California |
| 3.03%, 10/01/39 | 350,000 | 386,274 |
| 3.84%, 10/01/47 (a) | 150,000 | 192,392 |
| 3.23%, 10/01/20 (a) | 100,000 | 104,869 |
| William Marsh Rice University |
| 3.57%, 05/15/45 | 200,000 | 242,962 |
| Yale University |
| 1.48%, 04/15/30 (a) | 200,000 | 204,370 |
| | | 4,972,073 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Technology 2.5% |
| Adobe, Inc. |
| 1.70%, 02/01/23 | 150,000 | 155,183 |
| 3.25%, 02/01/25 (a) | 150,000 | 166,971 |
| 2.15%, 02/01/27 (a) | 200,000 | 215,225 |
| 2.30%, 02/01/30 (a) | 200,000 | 216,412 |
| Agilent Technologies, Inc. |
| 3.88%, 07/15/23 (a) | 150,000 | 163,007 |
| Alphabet, Inc. |
| 3.38%, 02/25/24 | 345,000 | 380,878 |
| 0.45%, 08/15/25 (a) | 150,000 | 150,005 |
| 2.00%, 08/15/26 (a) | 200,000 | 215,049 |
| 0.80%, 08/15/27 (a) | 250,000 | 249,906 |
| 1.10%, 08/15/30 (a) | 250,000 | 249,520 |
| 1.90%, 08/15/40 (a) | 500,000 | 487,902 |
| 2.05%, 08/15/50 (a) | 500,000 | 476,140 |
| 2.25%, 08/15/60 (a) | 500,000 | 479,110 |
| Amdocs Ltd. |
| 2.54%, 06/15/30 (a) | 250,000 | 260,678 |
| Analog Devices, Inc. |
| 3.13%, 12/05/23 (a) | 150,000 | 161,810 |
| 2.95%, 04/01/25 (a) | 150,000 | 164,500 |
| 3.90%, 12/15/25 (a) | 150,000 | 172,599 |
| 3.50%, 12/05/26 (a) | 100,000 | 114,038 |
| 5.30%, 12/15/45 (a) | 100,000 | 141,179 |
| Apple, Inc. |
| 1.55%, 08/04/21 (a) | 250,000 | 252,930 |
| 2.15%, 02/09/22 | 100,000 | 102,730 |
| 2.50%, 02/09/22 (a) | 200,000 | 206,037 |
| 2.30%, 05/11/22 (a) | 150,000 | 154,870 |
| 2.70%, 05/13/22 | 450,000 | 468,450 |
| 1.70%, 09/11/22 | 200,000 | 205,763 |
| 2.10%, 09/12/22 (a) | 200,000 | 207,156 |
| 2.40%, 01/13/23 (a) | 250,000 | 261,924 |
| 2.85%, 02/23/23 (a) | 150,000 | 158,803 |
| 2.40%, 05/03/23 | 1,080,000 | 1,140,680 |
| 0.75%, 05/11/23 | 350,000 | 354,282 |
| 3.00%, 02/09/24 (a) | 250,000 | 270,448 |
| 3.45%, 05/06/24 | 400,000 | 442,934 |
| 2.85%, 05/11/24 (a) | 300,000 | 324,849 |
| 1.80%, 09/11/24 (a) | 100,000 | 105,143 |
| 2.75%, 01/13/25 (a) | 200,000 | 218,470 |
| 2.50%, 02/09/25 | 539,000 | 585,025 |
| 1.13%, 05/11/25 (a) | 400,000 | 410,832 |
| 3.20%, 05/13/25 | 250,000 | 280,530 |
| 0.55%, 08/20/25 (a) | 350,000 | 351,106 |
| 3.25%, 02/23/26 (a) | 680,000 | 769,770 |
| 2.45%, 08/04/26 (a) | 350,000 | 384,009 |
| 2.05%, 09/11/26 (a) | 450,000 | 484,310 |
| 3.35%, 02/09/27 (a) | 300,000 | 343,917 |
| 3.20%, 05/11/27 (a) | 350,000 | 398,869 |
| 3.00%, 06/20/27 (a) | 300,000 | 338,805 |
| 2.90%, 09/12/27 (a) | 500,000 | 562,880 |
| 3.00%, 11/13/27 (a) | 250,000 | 283,441 |
| 2.20%, 09/11/29 (a) | 200,000 | 216,153 |
| 1.65%, 05/11/30 (a) | 400,000 | 414,920 |
| 1.25%, 08/20/30 (a) | 500,000 | 501,930 |
| 4.50%, 02/23/36 (a) | 200,000 | 266,677 |
| 3.85%, 05/04/43 | 480,000 | 591,864 |
| 4.45%, 05/06/44 | 150,000 | 201,890 |
| 3.45%, 02/09/45 | 400,000 | 469,222 |
| 4.38%, 05/13/45 | 300,000 | 396,067 |
| 4.65%, 02/23/46 (a) | 850,000 | 1,163,046 |
| 3.85%, 08/04/46 (a) | 400,000 | 493,754 |
| 4.25%, 02/09/47 (a) | 195,000 | 256,881 |
| 3.75%, 09/12/47 (a) | 250,000 | 304,761 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.75%, 11/13/47 (a) | 350,000 | 427,023 |
| 2.95%, 09/11/49 (a) | 200,000 | 216,373 |
| 2.65%, 05/11/50 (a) | 400,000 | 414,190 |
| 2.40%, 08/20/50 (a) | 500,000 | 498,740 |
| 2.55%, 08/20/60 (a) | 500,000 | 497,087 |
| Applied Materials, Inc. |
| 3.90%, 10/01/25 (a) | 250,000 | 288,774 |
| 3.30%, 04/01/27 (a) | 150,000 | 172,076 |
| 1.75%, 06/01/30 (a) | 250,000 | 259,880 |
| 5.10%, 10/01/35 (a) | 150,000 | 210,684 |
| 4.35%, 04/01/47 (a) | 150,000 | 202,910 |
| 2.75%, 06/01/50 (a) | 200,000 | 212,728 |
| Arrow Electronics, Inc. |
| 4.50%, 03/01/23 (a) | 100,000 | 107,241 |
| 3.25%, 09/08/24 (a) | 250,000 | 269,784 |
| Autodesk, Inc. |
| 4.38%, 06/15/25 (a) | 200,000 | 228,916 |
| 2.85%, 01/15/30 (a) | 100,000 | 110,612 |
| Avnet, Inc. |
| 4.88%, 12/01/22 | 100,000 | 107,784 |
| 4.63%, 04/15/26 (a) | 200,000 | 223,374 |
| Baidu, Inc. |
| 3.50%, 11/28/22 | 200,000 | 210,110 |
| 3.88%, 09/29/23 (a) | 200,000 | 215,881 |
| 4.13%, 06/30/25 | 500,000 | 561,005 |
| 4.88%, 11/14/28 (a) | 200,000 | 241,469 |
| Broadcom Corp./Broadcom Cayman Finance Ltd. |
| 2.65%, 01/15/23 (a) | 150,000 | 156,292 |
| 3.63%, 01/15/24 (a) | 200,000 | 216,175 |
| 3.13%, 01/15/25 (a) | 300,000 | 321,978 |
| 3.88%, 01/15/27 (a) | 850,000 | 942,964 |
| 3.50%, 01/15/28 (a) | 250,000 | 270,441 |
| Broadcom, Inc. |
| 3.13%, 10/15/22 | 200,000 | 209,827 |
| 3.63%, 10/15/24 (a) | 200,000 | 219,517 |
| 4.70%, 04/15/25 (a) | 450,000 | 514,537 |
| 3.15%, 11/15/25 (a) | 400,000 | 433,486 |
| 4.25%, 04/15/26 (a) | 350,000 | 397,563 |
| 3.46%, 09/15/26 (a) | 356,000 | 391,251 |
| 4.11%, 09/15/28 (a) | 413,000 | 464,726 |
| 4.75%, 04/15/29 (a) | 450,000 | 529,123 |
| 5.00%, 04/15/30 (a) | 400,000 | 476,890 |
| 4.15%, 11/15/30 (a) | 450,000 | 508,934 |
| 4.30%, 11/15/32 (a) | 350,000 | 403,083 |
| Broadridge Financial Solutions, Inc. |
| 3.40%, 06/27/26 (a) | 100,000 | 112,654 |
| 2.90%, 12/01/29 (a) | 150,000 | 163,934 |
| Cisco Systems, Inc. |
| 1.85%, 09/20/21 (a) | 300,000 | 304,749 |
| 3.00%, 06/15/22 | 200,000 | 210,140 |
| 2.20%, 09/20/23 (a) | 150,000 | 158,182 |
| 3.50%, 06/15/25 | 512,000 | 586,606 |
| 2.95%, 02/28/26 | 200,000 | 225,727 |
| 2.50%, 09/20/26 (a) | 100,000 | 110,939 |
| 5.90%, 02/15/39 | 100,000 | 151,732 |
| 5.50%, 01/15/40 | 450,000 | 665,624 |
| Citrix Systems, Inc. |
| 4.50%, 12/01/27 (a) | 100,000 | 115,247 |
| 3.30%, 03/01/30 (a) | 125,000 | 133,519 |
| Corning, Inc. |
| 2.90%, 05/15/22 (a) | 200,000 | 207,088 |
| 4.75%, 03/15/42 | 100,000 | 125,527 |
| 5.35%, 11/15/48 (a) | 200,000 | 267,719 |
| 3.90%, 11/15/49 (a) | 100,000 | 115,182 |
| 4.38%, 11/15/57 (a) | 100,000 | 121,186 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 5.85%, 11/15/68 (a) | 100,000 | 132,478 |
| 5.45%, 11/15/79 (a) | 190,000 | 241,685 |
| Dell International LLC/EMC Corp. |
| 4.42%, 06/15/21 (a)(c) | 467,000 | 479,345 |
| 5.45%, 06/15/23 (a)(c) | 600,000 | 662,703 |
| 4.00%, 07/15/24 (a)(c) | 150,000 | 162,443 |
| 5.85%, 07/15/25 (a)(c) | 200,000 | 234,786 |
| 6.02%, 06/15/26 (a)(c) | 880,000 | 1,034,207 |
| 4.90%, 10/01/26 (a)(c) | 350,000 | 396,039 |
| 6.10%, 07/15/27 (a)(c) | 100,000 | 117,745 |
| 5.30%, 10/01/29 (a)(c) | 300,000 | 343,024 |
| 6.20%, 07/15/30 (a)(c) | 200,000 | 242,657 |
| 8.10%, 07/15/36 (a)(c) | 250,000 | 333,540 |
| 8.35%, 07/15/46 (a)(c) | 370,000 | 502,034 |
| DXC Technology Co. |
| 4.25%, 04/15/24 (a) | 100,000 | 108,758 |
| 4.13%, 04/15/25 (a) | 200,000 | 216,666 |
| 4.75%, 04/15/27 (a) | 100,000 | 111,895 |
| Equifax, Inc. |
| 2.60%, 12/01/24 (a) | 300,000 | 321,214 |
| 2.60%, 12/15/25 (a) | 200,000 | 214,977 |
| 3.10%, 05/15/30 (a) | 200,000 | 219,711 |
| Equinix, Inc. |
| 2.63%, 11/18/24 (a) | 150,000 | 160,757 |
| 1.25%, 07/15/25 (a) | 250,000 | 253,873 |
| 2.90%, 11/18/26 (a) | 100,000 | 109,212 |
| 5.38%, 05/15/27 (a) | 150,000 | 164,251 |
| 3.20%, 11/18/29 (a) | 200,000 | 221,762 |
| 3.00%, 07/15/50 (a) | 250,000 | 256,370 |
| Fidelity National Information Services, Inc. |
| 3.50%, 04/15/23 (a) | 150,000 | 160,271 |
| 3.00%, 08/15/26 (a) | 200,000 | 223,684 |
| 4.25%, 05/15/28 (a) | 250,000 | 298,948 |
| 3.75%, 05/21/29 (a) | 150,000 | 176,397 |
| Fiserv, Inc. |
| 4.75%, 06/15/21 | 150,000 | 155,073 |
| 3.80%, 10/01/23 (a) | 150,000 | 164,268 |
| 2.75%, 07/01/24 (a) | 250,000 | 268,584 |
| 3.85%, 06/01/25 (a) | 100,000 | 113,557 |
| 3.20%, 07/01/26 (a) | 450,000 | 504,733 |
| 2.25%, 06/01/27 (a) | 250,000 | 266,506 |
| 4.20%, 10/01/28 (a) | 150,000 | 178,884 |
| 3.50%, 07/01/29 (a) | 500,000 | 570,407 |
| 2.65%, 06/01/30 (a) | 250,000 | 269,409 |
| 4.40%, 07/01/49 (a) | 475,000 | 603,212 |
| Flex Ltd |
| 4.88%, 05/12/30 (a) | 200,000 | 228,586 |
| Flex Ltd. |
| 4.75%, 06/15/25 (a) | 200,000 | 225,490 |
| 3.75%, 02/01/26 (a) | 400,000 | 434,942 |
| 4.88%, 06/15/29 (a) | 100,000 | 114,841 |
| FLIR Systems, Inc. |
| 2.50%, 08/01/30 (a) | 250,000 | 256,768 |
| Genpact Luxembourg Sarl |
| 3.70%, 04/01/22 (a)(g)(h) | 100,000 | 102,501 |
| Global Payments, Inc. |
| 3.75%, 06/01/23 (a) | 100,000 | 107,572 |
| 4.00%, 06/01/23 (a) | 100,000 | 108,673 |
| 2.65%, 02/15/25 (a) | 150,000 | 160,611 |
| 4.45%, 06/01/28 (a) | 100,000 | 117,617 |
| 3.20%, 08/15/29 (a) | 200,000 | 219,626 |
| 2.90%, 05/15/30 (a) | 225,000 | 243,014 |
| 4.15%, 08/15/49 (a) | 200,000 | 238,097 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Hewlett Packard Enterprise Co. |
| 3.50%, 10/05/21 (a) | 200,000 | 206,059 |
| 4.40%, 10/15/22 (a) | 250,000 | 268,010 |
| 2.25%, 04/01/23 (a) | 150,000 | 155,633 |
| 1.45%, 04/01/24 (a) | 500,000 | 506,147 |
| 4.65%, 10/01/24 (a) | 300,000 | 339,372 |
| 4.90%, 10/15/25 (a) | 350,000 | 404,754 |
| 1.75%, 04/01/26 (a) | 400,000 | 401,456 |
| 6.20%, 10/15/35 (a) | 150,000 | 186,962 |
| 6.35%, 10/15/45 (a) | 262,000 | 335,794 |
| HP, Inc. |
| 4.05%, 09/15/22 | 400,000 | 427,268 |
| 2.20%, 06/17/25 (a) | 150,000 | 158,293 |
| 3.00%, 06/17/27 (a) | 300,000 | 325,642 |
| 3.40%, 06/17/30 (a) | 200,000 | 216,204 |
| 6.00%, 09/15/41 | 150,000 | 183,918 |
| IBM Credit LLC |
| 3.00%, 02/06/23 | 100,000 | 106,352 |
| Intel Corp. |
| 3.30%, 10/01/21 | 263,000 | 271,761 |
| 2.35%, 05/11/22 (a) | 150,000 | 155,055 |
| 3.10%, 07/29/22 | 200,000 | 211,093 |
| 2.70%, 12/15/22 | 350,000 | 369,523 |
| 2.88%, 05/11/24 (a) | 300,000 | 325,012 |
| 3.40%, 03/25/25 (a) | 350,000 | 392,896 |
| 3.70%, 07/29/25 (a) | 350,000 | 400,118 |
| 2.60%, 05/19/26 (a) | 150,000 | 165,371 |
| 3.75%, 03/25/27 (a) | 250,000 | 292,610 |
| 2.45%, 11/15/29 (a) | 450,000 | 490,522 |
| 3.90%, 03/25/30 (a) | 300,000 | 364,657 |
| 4.00%, 12/15/32 | 150,000 | 189,248 |
| 4.60%, 03/25/40 (a) | 250,000 | 333,424 |
| 4.80%, 10/01/41 | 195,000 | 263,917 |
| 4.25%, 12/15/42 | 100,000 | 125,856 |
| 4.10%, 05/19/46 (a) | 550,000 | 690,401 |
| 4.10%, 05/11/47 (a) | 100,000 | 126,288 |
| 3.73%, 12/08/47 (a) | 350,000 | 417,702 |
| 3.25%, 11/15/49 (a) | 300,000 | 336,715 |
| 4.75%, 03/25/50 (a) | 400,000 | 554,430 |
| 3.10%, 02/15/60 (a) | 160,000 | 172,338 |
| 4.95%, 03/25/60 (a) | 150,000 | 218,343 |
| International Business Machines Corp. |
| 2.50%, 01/27/22 | 150,000 | 154,663 |
| 2.85%, 05/13/22 | 550,000 | 573,664 |
| 1.88%, 08/01/22 | 200,000 | 205,987 |
| 2.88%, 11/09/22 | 400,000 | 421,940 |
| 3.38%, 08/01/23 | 200,000 | 217,145 |
| 3.63%, 02/12/24 | 400,000 | 441,258 |
| 3.00%, 05/15/24 | 650,000 | 707,359 |
| 3.45%, 02/19/26 | 300,000 | 342,100 |
| 3.30%, 05/15/26 | 550,000 | 624,844 |
| 3.30%, 01/27/27 | 250,000 | 283,504 |
| 1.70%, 05/15/27 (a) | 200,000 | 207,345 |
| 6.22%, 08/01/27 | 230,000 | 305,822 |
| 3.50%, 05/15/29 | 550,000 | 639,545 |
| 1.95%, 05/15/30 (a) | 200,000 | 207,534 |
| 4.15%, 05/15/39 | 450,000 | 554,593 |
| 5.60%, 11/30/39 | 150,000 | 214,896 |
| 2.85%, 05/15/40 (a) | 200,000 | 213,046 |
| 4.70%, 02/19/46 | 150,000 | 199,830 |
| 4.25%, 05/15/49 | 650,000 | 825,913 |
| 2.95%, 05/15/50 (a) | 200,000 | 208,291 |
| Intuit, Inc. |
| 0.65%, 07/15/23 | 250,000 | 252,139 |
| 0.95%, 07/15/25 (a) | 200,000 | 202,458 |
| 1.35%, 07/15/27 (a) | 250,000 | 255,966 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Jabil, Inc. |
| 4.70%, 09/15/22 | 200,000 | 214,850 |
| 3.60%, 01/15/30 (a) | 100,000 | 107,235 |
| 3.00%, 01/15/31 (a) | 200,000 | 203,722 |
| Juniper Networks, Inc. |
| 4.50%, 03/15/24 | 200,000 | 224,914 |
| 3.75%, 08/15/29 (a) | 150,000 | 171,010 |
| 5.95%, 03/15/41 | 100,000 | 126,599 |
| Keysight Technologies, Inc. |
| 4.60%, 04/06/27 (a) | 150,000 | 176,960 |
| 3.00%, 10/30/29 (a) | 100,000 | 109,683 |
| KLA Corp. |
| 4.65%, 11/01/24 (a) | 230,000 | 264,708 |
| 4.10%, 03/15/29 (a) | 100,000 | 120,248 |
| 5.00%, 03/15/49 (a) | 100,000 | 135,670 |
| 3.30%, 03/01/50 (a) | 100,000 | 107,099 |
| Lam Research Corp. |
| 2.80%, 06/15/21 (a) | 100,000 | 101,769 |
| 3.80%, 03/15/25 (a) | 230,000 | 260,355 |
| 4.00%, 03/15/29 (a) | 150,000 | 180,385 |
| 1.90%, 06/15/30 (a) | 200,000 | 207,413 |
| 4.88%, 03/15/49 (a) | 100,000 | 143,881 |
| 2.88%, 06/15/50 (a) | 200,000 | 212,357 |
| Leidos, Inc. |
| 3.63%, 05/15/25 (a)(c) | 150,000 | 167,530 |
| 4.38%, 05/15/30 (a)(c) | 150,000 | 176,183 |
| Marvell Technology Group Ltd. |
| 4.88%, 06/22/28 (a) | 100,000 | 120,690 |
| Maxim Integrated Products, Inc. |
| 3.45%, 06/15/27 (a) | 100,000 | 111,092 |
| Microchip Technology, Inc. |
| 4.33%, 06/01/23 (a) | 200,000 | 215,941 |
| Micron Technology, Inc. |
| 2.50%, 04/24/23 | 200,000 | 208,756 |
| 4.98%, 02/06/26 (a) | 250,000 | 291,863 |
| 4.19%, 02/15/27 (a) | 150,000 | 172,569 |
| 5.33%, 02/06/29 (a) | 200,000 | 240,770 |
| 4.66%, 02/15/30 (a) | 150,000 | 175,052 |
| Microsoft Corp. |
| 1.55%, 08/08/21 (a) | 300,000 | 303,447 |
| 2.40%, 02/06/22 (a) | 250,000 | 257,401 |
| 2.38%, 02/12/22 (a) | 300,000 | 308,842 |
| 2.65%, 11/03/22 (a) | 150,000 | 157,324 |
| 2.38%, 05/01/23 (a) | 300,000 | 315,571 |
| 2.00%, 08/08/23 (a) | 400,000 | 419,200 |
| 3.63%, 12/15/23 (a) | 350,000 | 385,497 |
| 2.88%, 02/06/24 (a) | 350,000 | 378,156 |
| 2.70%, 02/12/25 (a) | 350,000 | 382,499 |
| 3.13%, 11/03/25 (a) | 530,000 | 596,176 |
| 2.40%, 08/08/26 (a) | 800,000 | 875,496 |
| 3.30%, 02/06/27 (a) | 750,000 | 859,961 |
| 3.50%, 02/12/35 (a) | 250,000 | 309,167 |
| 4.20%, 11/03/35 (a) | 250,000 | 330,016 |
| 3.45%, 08/08/36 (a) | 350,000 | 422,229 |
| 4.10%, 02/06/37 (a) | 300,000 | 389,179 |
| 4.50%, 10/01/40 | 550,000 | 754,630 |
| 3.50%, 11/15/42 | 100,000 | 120,982 |
| 3.75%, 02/12/45 (a) | 350,000 | 439,330 |
| 4.45%, 11/03/45 (a) | 250,000 | 348,845 |
| 3.70%, 08/08/46 (a) | 874,000 | 1,092,382 |
| 4.25%, 02/06/47 (a) | 450,000 | 615,109 |
| 2.53%, 06/01/50 (a) | 850,000 | 894,863 |
| 4.00%, 02/12/55 (a) | 100,000 | 134,047 |
| 3.95%, 08/08/56 (a) | 450,000 | 596,218 |
| 4.50%, 02/06/57 (a) | 300,000 | 433,413 |
| 2.68%, 06/01/60 (a) | 529,000 | 557,912 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Motorola Solutions, Inc. |
| 3.75%, 05/15/22 | 85,000 | 89,707 |
| 3.50%, 03/01/23 | 180,000 | 191,266 |
| 4.00%, 09/01/24 | 200,000 | 221,839 |
| 4.60%, 02/23/28 (a) | 150,000 | 174,469 |
| 4.60%, 05/23/29 (a) | 150,000 | 176,369 |
| 2.30%, 11/15/30 (a) | 250,000 | 249,971 |
| 5.50%, 09/01/44 | 100,000 | 117,605 |
| NetApp, Inc. |
| 1.88%, 06/22/25 (a) | 250,000 | 260,518 |
| NVIDIA Corp. |
| 2.20%, 09/16/21 (a) | 180,000 | 183,303 |
| 3.20%, 09/16/26 (a) | 100,000 | 113,157 |
| 2.85%, 04/01/30 (a) | 250,000 | 278,601 |
| 3.50%, 04/01/40 (a) | 250,000 | 288,951 |
| 3.50%, 04/01/50 (a) | 350,000 | 398,401 |
| 3.70%, 04/01/60 (a) | 100,000 | 117,617 |
| NXP BV/NXP Funding LLC |
| 4.88%, 03/01/24 (a)(c) | 200,000 | 225,473 |
| 5.35%, 03/01/26 (a)(c) | 250,000 | 299,667 |
| 5.55%, 12/01/28 (a)(c) | 200,000 | 250,567 |
| NXP BV/NXP Funding LLC/NXP USA, Inc. |
| 2.70%, 05/01/25 (a)(c) | 175,000 | 186,773 |
| 4.30%, 06/18/29 (a)(c) | 150,000 | 175,073 |
| 3.40%, 05/01/30 (a)(c) | 200,000 | 222,846 |
| Oracle Corp. |
| 2.80%, 07/08/21 | 200,000 | 204,355 |
| 1.90%, 09/15/21 (a) | 500,000 | 507,872 |
| 2.50%, 05/15/22 (a) | 350,000 | 361,735 |
| 2.50%, 10/15/22 | 450,000 | 470,353 |
| 2.63%, 02/15/23 (a) | 400,000 | 421,240 |
| 3.63%, 07/15/23 | 212,000 | 231,569 |
| 2.40%, 09/15/23 (a) | 500,000 | 528,387 |
| 3.40%, 07/08/24 (a) | 250,000 | 274,981 |
| 2.95%, 11/15/24 (a) | 450,000 | 491,623 |
| 2.50%, 04/01/25 (a) | 600,000 | 647,073 |
| 2.95%, 05/15/25 (a) | 601,000 | 659,850 |
| 2.65%, 07/15/26 (a) | 600,000 | 659,106 |
| 2.80%, 04/01/27 (a) | 400,000 | 440,200 |
| 3.25%, 11/15/27 (a) | 400,000 | 452,668 |
| 2.95%, 04/01/30 (a) | 700,000 | 784,427 |
| 3.25%, 05/15/30 (a) | 200,000 | 229,498 |
| 4.30%, 07/08/34 (a) | 300,000 | 375,195 |
| 3.90%, 05/15/35 (a) | 250,000 | 305,549 |
| 3.85%, 07/15/36 (a) | 150,000 | 178,171 |
| 3.80%, 11/15/37 (a) | 400,000 | 464,486 |
| 6.13%, 07/08/39 | 250,000 | 370,729 |
| 3.60%, 04/01/40 (a) | 600,000 | 680,217 |
| 5.38%, 07/15/40 | 350,000 | 482,417 |
| 4.50%, 07/08/44 (a) | 230,000 | 287,906 |
| 4.13%, 05/15/45 (a) | 450,000 | 538,207 |
| 4.00%, 07/15/46 (a) | 470,000 | 553,232 |
| 4.00%, 11/15/47 (a) | 500,000 | 593,242 |
| 3.60%, 04/01/50 (a) | 850,000 | 953,772 |
| 4.38%, 05/15/55 (a) | 150,000 | 190,485 |
| 3.85%, 04/01/60 (a) | 650,000 | 755,830 |
| PayPal Holdings, Inc. |
| 2.20%, 09/26/22 | 150,000 | 155,606 |
| 1.35%, 06/01/23 | 200,000 | 204,883 |
| 2.40%, 10/01/24 (a) | 150,000 | 160,328 |
| 1.65%, 06/01/25 (a) | 250,000 | 260,409 |
| 2.65%, 10/01/26 (a) | 250,000 | 274,545 |
| 2.85%, 10/01/29 (a) | 300,000 | 333,384 |
| 2.30%, 06/01/30 (a) | 200,000 | 213,447 |
| 3.25%, 06/01/50 (a) | 250,000 | 285,805 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| QUALCOMM, Inc. |
| 3.00%, 05/20/22 | 150,000 | 156,950 |
| 2.60%, 01/30/23 (a) | 150,000 | 157,628 |
| 2.90%, 05/20/24 (a) | 150,000 | 162,142 |
| 3.45%, 05/20/25 (a) | 100,000 | 112,220 |
| 3.25%, 05/20/27 (a) | 350,000 | 397,351 |
| 1.30%, 05/20/28 (a) | 367,000 | 368,486 |
| 2.15%, 05/20/30 (a) | 200,000 | 212,030 |
| 1.65%, 05/20/32 (a)(c) | 283,000 | 282,815 |
| 4.65%, 05/20/35 (a) | 300,000 | 406,120 |
| 4.80%, 05/20/45 (a) | 350,000 | 479,178 |
| 4.30%, 05/20/47 (a) | 200,000 | 257,788 |
| 3.25%, 05/20/50 (a) | 225,000 | 255,619 |
| salesforce.com, Inc. |
| 3.70%, 04/11/28 (a) | 300,000 | 352,389 |
| Seagate HDD Cayman |
| 4.75%, 06/01/23 | 150,000 | 161,995 |
| 4.88%, 03/01/24 (a) | 100,000 | 109,726 |
| 4.75%, 01/01/25 | 50,000 | 54,518 |
| 4.88%, 06/01/27 (a) | 176,000 | 196,737 |
| 4.09%, 06/01/29 (a)(c) | 190,000 | 203,769 |
| 4.13%, 01/15/31 (a)(c) | 200,000 | 216,766 |
| ServiceNow, Inc. |
| 1.40%, 09/01/30 (a) | 500,000 | 492,682 |
| Texas Instruments, Inc. |
| 1.85%, 05/15/22 (a) | 151,000 | 154,891 |
| 1.38%, 03/12/25 (a) | 150,000 | 155,622 |
| 2.90%, 11/03/27 (a) | 75,000 | 84,423 |
| 2.25%, 09/04/29 (a) | 100,000 | 107,727 |
| 1.75%, 05/04/30 (a) | 200,000 | 206,593 |
| 3.88%, 03/15/39 (a) | 150,000 | 188,738 |
| 4.15%, 05/15/48 (a) | 350,000 | 462,688 |
| Trimble, Inc. |
| 4.15%, 06/15/23 (a) | 150,000 | 161,742 |
| 4.90%, 06/15/28 (a) | 100,000 | 119,730 |
| Tyco Electronics Group S.A. |
| 3.50%, 02/03/22 (a) | 100,000 | 103,717 |
| 3.45%, 08/01/24 (a) | 100,000 | 109,412 |
| 3.70%, 02/15/26 (a) | 100,000 | 113,666 |
| 3.13%, 08/15/27 (a) | 100,000 | 108,793 |
| Verisk Analytics, Inc. |
| 4.00%, 06/15/25 (a) | 150,000 | 172,055 |
| 4.13%, 03/15/29 (a) | 150,000 | 178,939 |
| 5.50%, 06/15/45 (a) | 50,000 | 70,812 |
| VMware, Inc. |
| 2.95%, 08/21/22 (a) | 150,000 | 156,581 |
| 4.50%, 05/15/25 (a) | 150,000 | 171,317 |
| 4.65%, 05/15/27 (a) | 150,000 | 175,193 |
| 3.90%, 08/21/27 (a) | 200,000 | 222,237 |
| 4.70%, 05/15/30 (a) | 150,000 | 176,945 |
| Xilinx, Inc. |
| 2.95%, 06/01/24 (a) | 100,000 | 108,271 |
| 2.38%, 06/01/30 (a) | 200,000 | 215,161 |
| | | 115,573,125 |
| Transportation 0.7% |
| American Airlines 2015-1 Class A Pass-Through Trust |
| 3.38%, 05/01/27 | 181,323 | 151,951 |
| American Airlines 2015-2 Class AA Pass-Through Trust |
| 3.60%, 09/22/27 | 162,109 | 152,708 |
| American Airlines 2016-2 Class AA Pass-Through Trust |
| 3.20%, 06/15/28 | 162,240 | 151,540 |
| American Airlines 2017-1 Class AA Pass-Through Trust |
| 3.65%, 02/15/29 | 124,312 | 118,438 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| American Airlines 2019-1 Class AA Pass-Through Trust |
| 3.15%, 02/15/32 | 115,828 | 108,391 |
| Burlington Northern Santa Fe LLC |
| 3.45%, 09/15/21 (a) | 150,000 | 153,829 |
| 3.05%, 03/15/22 (a) | 300,000 | 310,462 |
| 3.00%, 03/15/23 (a) | 150,000 | 159,601 |
| 3.85%, 09/01/23 (a) | 150,000 | 164,083 |
| 3.75%, 04/01/24 (a) | 200,000 | 221,768 |
| 3.40%, 09/01/24 (a) | 200,000 | 221,482 |
| 6.20%, 08/15/36 | 150,000 | 223,288 |
| 5.75%, 05/01/40 (a) | 100,000 | 145,590 |
| 5.05%, 03/01/41 (a) | 100,000 | 137,231 |
| 5.40%, 06/01/41 (a) | 100,000 | 142,385 |
| 4.95%, 09/15/41 (a) | 200,000 | 272,306 |
| 5.15%, 09/01/43 (a) | 100,000 | 141,802 |
| 4.90%, 04/01/44 (a) | 100,000 | 138,214 |
| 4.55%, 09/01/44 (a) | 90,000 | 119,682 |
| 4.15%, 04/01/45 (a) | 250,000 | 317,631 |
| 4.70%, 09/01/45 (a) | 100,000 | 136,631 |
| 3.90%, 08/01/46 (a) | 250,000 | 310,945 |
| 4.05%, 06/15/48 (a) | 400,000 | 510,250 |
| 4.15%, 12/15/48 (a) | 500,000 | 650,440 |
| 3.55%, 02/15/50 (a) | 100,000 | 119,337 |
| 3.05%, 02/15/51 (a) | 100,000 | 111,106 |
| Canadian National Railway Co. |
| 2.75%, 03/01/26 (a) | 300,000 | 329,791 |
| 6.90%, 07/15/28 | 150,000 | 208,618 |
| 3.20%, 08/02/46 (a) | 150,000 | 172,486 |
| 3.65%, 02/03/48 (a) | 100,000 | 122,562 |
| 4.45%, 01/20/49 (a) | 150,000 | 205,330 |
| 2.45%, 05/01/50 (a) | 200,000 | 201,209 |
| Canadian Pacific Railway Co. |
| 2.90%, 02/01/25 (a) | 200,000 | 218,751 |
| 4.00%, 06/01/28 (a) | 150,000 | 177,151 |
| 2.05%, 03/05/30 (a) | 100,000 | 104,912 |
| 4.80%, 09/15/35 (a) | 300,000 | 398,194 |
| 4.80%, 08/01/45 (a) | 100,000 | 137,031 |
| 6.13%, 09/15/15 (a) | 100,000 | 153,994 |
| Continental Airlines 2012-1 Class A Pass-Through Trust |
| 4.15%, 04/11/24 | 98,320 | 92,200 |
| CSX Corp. |
| 3.40%, 08/01/24 (a) | 150,000 | 165,796 |
| 3.35%, 11/01/25 (a) | 100,000 | 113,436 |
| 2.60%, 11/01/26 (a) | 100,000 | 110,212 |
| 3.25%, 06/01/27 (a) | 150,000 | 169,905 |
| 3.80%, 03/01/28 (a) | 200,000 | 234,327 |
| 4.25%, 03/15/29 (a) | 150,000 | 181,534 |
| 2.40%, 02/15/30 (a) | 150,000 | 160,315 |
| 6.22%, 04/30/40 | 500,000 | 740,107 |
| 4.75%, 05/30/42 (a) | 100,000 | 129,079 |
| 4.10%, 03/15/44 (a) | 200,000 | 246,177 |
| 3.80%, 11/01/46 (a) | 100,000 | 116,656 |
| 4.30%, 03/01/48 (a) | 100,000 | 127,877 |
| 4.75%, 11/15/48 (a) | 100,000 | 134,705 |
| 4.50%, 03/15/49 (a) | 150,000 | 196,555 |
| 3.35%, 09/15/49 (a) | 100,000 | 112,998 |
| 3.80%, 04/15/50 (a) | 100,000 | 121,050 |
| 3.95%, 05/01/50 (a) | 200,000 | 245,976 |
| 4.50%, 08/01/54 (a) | 100,000 | 132,396 |
| 4.65%, 03/01/68 (a) | 50,000 | 66,608 |
| Delta Air Lines 2019-1 Class AA Pass-Through Trust |
| 3.20%, 04/25/24 | 200,000 | 199,558 |
| Delta Air Lines 2020-1 Class AA Pass-Through Trust |
| 2.00%, 06/10/28 | 100,000 | 97,060 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| FedEx Corp. |
| 2.63%, 08/01/22 | 150,000 | 156,088 |
| 4.00%, 01/15/24 | 200,000 | 221,981 |
| 3.20%, 02/01/25 | 100,000 | 109,991 |
| 3.80%, 05/15/25 (a) | 300,000 | 339,522 |
| 3.25%, 04/01/26 (a) | 250,000 | 279,207 |
| 3.30%, 03/15/27 (a) | 150,000 | 166,068 |
| 3.40%, 02/15/28 (a) | 150,000 | 167,589 |
| 3.10%, 08/05/29 (a) | 200,000 | 222,331 |
| 4.90%, 01/15/34 | 150,000 | 193,364 |
| 1.88%, 02/20/34 | 250,000 | 251,650 |
| 3.90%, 02/01/35 | 200,000 | 230,401 |
| 3.88%, 08/01/42 | 150,000 | 162,031 |
| 4.10%, 04/15/43 | 100,000 | 110,874 |
| 5.10%, 01/15/44 | 75,000 | 94,926 |
| 4.10%, 02/01/45 | 400,000 | 450,208 |
| 4.75%, 11/15/45 (a) | 300,000 | 366,721 |
| 4.40%, 01/15/47 (a) | 100,000 | 115,910 |
| 4.05%, 02/15/48 (a) | 100,000 | 112,609 |
| 4.95%, 10/17/48 (a) | 150,000 | 189,499 |
| 5.25%, 05/15/50 (a) | 300,000 | 398,655 |
| JB Hunt Transport Services, Inc. |
| 3.88%, 03/01/26 (a) | 150,000 | 173,620 |
| JetBlue 2019-1 Class AA Pass-Through Trust |
| 2.75%, 05/15/32 | 98,781 | 94,514 |
| JetBlue 2020-1 Class A Pass Through Trust |
| 4.00%, 11/15/32 | 250,000 | 256,174 |
| Kansas City Southern |
| 2.88%, 11/15/29 (a) | 150,000 | 156,467 |
| 4.95%, 08/15/45 (a) | 100,000 | 109,074 |
| 4.70%, 05/01/48 (a) | 150,000 | 167,023 |
| 3.50%, 05/01/50 (a) | 100,000 | 103,448 |
| 4.20%, 11/15/69 (a) | 100,000 | 104,499 |
| Kirby Corp. |
| 4.20%, 03/01/28 (a) | 100,000 | 105,061 |
| Norfolk Southern Corp. |
| 2.90%, 02/15/23 (a) | 150,000 | 158,214 |
| 3.65%, 08/01/25 (a) | 100,000 | 113,542 |
| 3.15%, 06/01/27 (a) | 200,000 | 222,681 |
| 2.55%, 11/01/29 (a) | 100,000 | 109,449 |
| 3.95%, 10/01/42 (a) | 330,000 | 394,464 |
| 4.65%, 01/15/46 (a) | 150,000 | 196,679 |
| 3.94%, 11/01/47 (a) | 200,000 | 239,172 |
| 4.15%, 02/28/48 (a) | 100,000 | 124,838 |
| 4.10%, 05/15/49 (a) | 100,000 | 124,062 |
| 3.40%, 11/01/49 (a) | 100,000 | 113,064 |
| 3.05%, 05/15/50 (a) | 200,000 | 213,004 |
| 4.05%, 08/15/52 (a) | 150,000 | 183,380 |
| 3.16%, 05/15/55 (a) | 150,000 | 158,467 |
| Ryder System, Inc. |
| 3.45%, 11/15/21 (a) | 150,000 | 154,846 |
| 2.88%, 06/01/22 (a) | 100,000 | 103,884 |
| 3.75%, 06/09/23 (a) | 150,000 | 161,780 |
| 3.88%, 12/01/23 (a) | 150,000 | 163,902 |
| 3.65%, 03/18/24 (a) | 100,000 | 108,847 |
| 4.63%, 06/01/25 (a) | 150,000 | 172,942 |
| 3.35%, 09/01/25 (a) | 150,000 | 164,897 |
| 2.90%, 12/01/26 (a) | 100,000 | 107,311 |
| Southwest Airlines Co. |
| 4.75%, 05/04/23 | 225,000 | 239,950 |
| 5.25%, 05/04/25 (a) | 320,000 | 348,784 |
| 3.00%, 11/15/26 (a) | 145,000 | 146,136 |
| 5.13%, 06/15/27 (a) | 400,000 | 434,320 |
| 3.45%, 11/16/27 (a) | 100,000 | 100,041 |
| 2.63%, 02/10/30 (a) | 150,000 | 141,351 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Union Pacific Corp. |
| 4.16%, 07/15/22 (a) | 362,000 | 384,236 |
| 3.65%, 02/15/24 (a) | 500,000 | 546,960 |
| 3.15%, 03/01/24 (a) | 200,000 | 217,161 |
| 3.25%, 01/15/25 (a) | 100,000 | 110,023 |
| 3.75%, 07/15/25 (a) | 150,000 | 171,011 |
| 3.00%, 04/15/27 (a) | 200,000 | 224,314 |
| 3.95%, 09/10/28 (a) | 250,000 | 297,189 |
| 3.70%, 03/01/29 (a) | 150,000 | 176,047 |
| 2.40%, 02/05/30 (a) | 200,000 | 216,153 |
| 3.60%, 09/15/37 (a) | 150,000 | 172,041 |
| 4.38%, 09/10/38 (a) | 150,000 | 187,756 |
| 3.55%, 08/15/39 (a) | 100,000 | 118,263 |
| 4.05%, 11/15/45 (a) | 450,000 | 547,123 |
| 4.05%, 03/01/46 (a) | 150,000 | 183,712 |
| 4.50%, 09/10/48 (a) | 150,000 | 199,822 |
| 4.30%, 03/01/49 (a) | 100,000 | 129,598 |
| 3.25%, 02/05/50 (a) | 450,000 | 500,015 |
| 3.80%, 10/01/51 (a) | 150,000 | 182,408 |
| 3.88%, 02/01/55 (a) | 50,000 | 59,872 |
| 3.95%, 08/15/59 (a) | 100,000 | 119,601 |
| 3.84%, 03/20/60 (a) | 350,000 | 413,353 |
| 4.38%, 11/15/65 (a) | 150,000 | 192,436 |
| 3.75%, 02/05/70 (a) | 200,000 | 227,109 |
| United Airlines 2014-1 Class A Pass-Through Trust |
| 4.00%, 04/11/26 | 289,516 | 263,791 |
| United Airlines 2014-2 Class A Pass-Through Trust |
| 3.75%, 09/03/26 | 111,873 | 103,142 |
| United Airlines 2016-1 Class AA Pass-Through Trust |
| 3.10%, 07/07/28 | 126,255 | 122,441 |
| United Airlines 2016-2 Class AA Pass-Through Trust |
| 2.88%, 10/07/28 | 86,784 | 81,249 |
| United Airlines 2018-1 Class AA Pass-Through Trust |
| 3.50%, 03/01/30 | 139,954 | 132,086 |
| United Airlines 2019-1 Class AA Pass-Through Trust |
| 4.15%, 08/25/31 | 86,571 | 85,778 |
| United Airlines 2019-2 Class AA Pass-Through Trust |
| 2.70%, 05/01/32 | 100,000 | 91,749 |
| United Parcel Service, Inc. |
| 2.35%, 05/16/22 (a) | 250,000 | 258,217 |
| 2.45%, 10/01/22 | 350,000 | 365,263 |
| 2.50%, 04/01/23 (a) | 250,000 | 262,951 |
| 2.20%, 09/01/24 (a) | 100,000 | 106,030 |
| 3.90%, 04/01/25 (a) | 150,000 | 170,883 |
| 3.05%, 11/15/27 (a) | 250,000 | 283,477 |
| 3.40%, 03/15/29 (a) | 100,000 | 116,119 |
| 4.45%, 04/01/30 (a) | 250,000 | 315,706 |
| 6.20%, 01/15/38 | 195,000 | 295,740 |
| 5.20%, 04/01/40 (a) | 100,000 | 139,121 |
| 4.88%, 11/15/40 (a) | 250,000 | 330,251 |
| 3.40%, 11/15/46 (a) | 100,000 | 113,427 |
| 3.75%, 11/15/47 (a) | 150,000 | 180,609 |
| 4.25%, 03/15/49 (a) | 100,000 | 129,431 |
| 3.40%, 09/01/49 (a) | 100,000 | 113,961 |
| 5.30%, 04/01/50 (a) | 300,000 | 442,954 |
| | | 32,305,738 |
| | | 791,249,375 |
| |
| Utility 2.3% |
| Electric 2.1% |
| AEP Texas, Inc. |
| 3.95%, 06/01/28 (a) | 250,000 | 290,139 |
| 2.10%, 07/01/30 (a) | 175,000 | 179,974 |
| 4.15%, 05/01/49 (a) | 100,000 | 122,031 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| AEP Transmission Co. LLC |
| 3.75%, 12/01/47 (a) | 150,000 | 178,823 |
| 3.80%, 06/15/49 (a) | 100,000 | 121,582 |
| 3.65%, 04/01/50 (a) | 200,000 | 238,776 |
| Alabama Power Co. |
| 1.45%, 09/15/30 (a) | 250,000 | 250,299 |
| 6.00%, 03/01/39 | 100,000 | 147,062 |
| 3.85%, 12/01/42 | 150,000 | 178,808 |
| 4.15%, 08/15/44 (a) | 150,000 | 185,614 |
| 3.70%, 12/01/47 (a) | 350,000 | 416,689 |
| 4.30%, 07/15/48 (a) | 150,000 | 194,452 |
| 3.45%, 10/01/49 (a) | 100,000 | 115,370 |
| Ameren Corp. |
| 2.50%, 09/15/24 (a) | 100,000 | 106,930 |
| 3.50%, 01/15/31 (a) | 200,000 | 230,528 |
| Ameren Illinois Co. |
| 2.70%, 09/01/22 (a) | 263,000 | 273,315 |
| 4.15%, 03/15/46 (a) | 150,000 | 185,476 |
| 3.70%, 12/01/47 (a) | 350,000 | 421,407 |
| 4.50%, 03/15/49 (a) | 100,000 | 135,518 |
| American Electric Power Co., Inc. |
| 3.65%, 12/01/21 | 150,000 | 156,246 |
| 3.20%, 11/13/27 (a) | 150,000 | 165,079 |
| 4.30%, 12/01/28 (a) | 100,000 | 118,234 |
| 2.30%, 03/01/30 (a) | 150,000 | 154,881 |
| 3.25%, 03/01/50 (a) | 150,000 | 157,682 |
| Appalachian Power Co. |
| 3.30%, 06/01/27 (a) | 100,000 | 109,203 |
| 7.00%, 04/01/38 | 100,000 | 150,708 |
| 4.50%, 03/01/49 (a) | 100,000 | 125,427 |
| 3.70%, 05/01/50 (a) | 200,000 | 226,119 |
| Arizona Public Service Co. |
| 2.60%, 08/15/29 (a) | 100,000 | 107,883 |
| 4.50%, 04/01/42 (a) | 300,000 | 375,831 |
| 4.25%, 03/01/49 (a) | 100,000 | 126,144 |
| 3.35%, 05/15/50 (a) | 250,000 | 280,874 |
| Atlantic City Electric Co. |
| 4.00%, 10/15/28 (a) | 100,000 | 118,202 |
| Avangrid, Inc. |
| 3.15%, 12/01/24 (a) | 100,000 | 109,546 |
| 3.20%, 04/15/25 (a) | 150,000 | 165,742 |
| 3.80%, 06/01/29 (a) | 100,000 | 116,843 |
| Avista Corp. |
| 4.35%, 06/01/48 (a) | 100,000 | 126,775 |
| Baltimore Gas & Electric Co. |
| 3.35%, 07/01/23 (a) | 100,000 | 107,340 |
| 6.35%, 10/01/36 | 100,000 | 147,420 |
| 3.50%, 08/15/46 (a) | 150,000 | 173,278 |
| 3.75%, 08/15/47 (a) | 150,000 | 180,235 |
| Berkshire Hathaway Energy Co. |
| 2.80%, 01/15/23 (a) | 600,000 | 633,738 |
| 3.75%, 11/15/23 (a) | 200,000 | 219,268 |
| 4.05%, 04/15/25 (a)(c) | 150,000 | 171,878 |
| 3.25%, 04/15/28 (a) | 350,000 | 397,752 |
| 3.70%, 07/15/30 (a)(c) | 350,000 | 416,843 |
| 6.13%, 04/01/36 | 298,000 | 429,884 |
| 5.15%, 11/15/43 (a) | 100,000 | 138,228 |
| 4.50%, 02/01/45 (a) | 250,000 | 321,367 |
| 3.80%, 07/15/48 (a) | 150,000 | 178,769 |
| 4.45%, 01/15/49 (a) | 300,000 | 390,069 |
| 4.25%, 10/15/50 (a)(c) | 100,000 | 127,885 |
| Black Hills Corp. |
| 3.15%, 01/15/27 (a) | 100,000 | 107,261 |
| 2.50%, 06/15/30 (a) | 250,000 | 261,144 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 4.35%, 05/01/33 (a) | 150,000 | 173,371 |
| 3.88%, 10/15/49 (a) | 100,000 | 113,874 |
| CenterPoint Energy Houston Electric LLC |
| 2.40%, 09/01/26 (a) | 257,000 | 276,220 |
| 3.00%, 02/01/27 (a) | 150,000 | 164,836 |
| 4.50%, 04/01/44 (a) | 250,000 | 332,035 |
| 4.25%, 02/01/49 (a) | 100,000 | 131,477 |
| CenterPoint Energy, Inc. |
| 2.50%, 09/01/24 (a) | 250,000 | 266,181 |
| 2.95%, 03/01/30 (a) | 100,000 | 109,448 |
| 3.70%, 09/01/49 (a) | 100,000 | 112,001 |
| Cleco Corporate Holdings LLC |
| 3.74%, 05/01/26 (a) | 150,000 | 160,505 |
| 3.38%, 09/15/29 (a) | 100,000 | 102,298 |
| CMS Energy Corp. |
| 3.45%, 08/15/27 (a) | 100,000 | 112,583 |
| 4.88%, 03/01/44 (a) | 100,000 | 132,870 |
| 4.75%, 06/01/50 (a)(b) | 100,000 | 108,869 |
| Commonwealth Edison Co. |
| 2.95%, 08/15/27 (a) | 150,000 | 167,530 |
| 2.20%, 03/01/30 (a) | 100,000 | 106,971 |
| 3.80%, 10/01/42 (a) | 150,000 | 178,483 |
| 4.60%, 08/15/43 (a) | 100,000 | 130,745 |
| 3.70%, 03/01/45 (a) | 100,000 | 117,840 |
| 4.35%, 11/15/45 (a) | 100,000 | 129,407 |
| 3.65%, 06/15/46 (a) | 100,000 | 118,874 |
| 3.75%, 08/15/47 (a) | 50,000 | 60,632 |
| 4.00%, 03/01/48 (a) | 150,000 | 189,070 |
| 4.00%, 03/01/49 (a) | 150,000 | 189,759 |
| 3.20%, 11/15/49 (a) | 100,000 | 112,685 |
| 3.00%, 03/01/50 (a) | 150,000 | 163,750 |
| Consolidated Edison Co. of New York, Inc. |
| 4.00%, 12/01/28 (a) | 50,000 | 59,911 |
| 3.35%, 04/01/30 (a) | 100,000 | 116,027 |
| 5.30%, 03/01/35 | 230,000 | 311,183 |
| 5.85%, 03/15/36 | 150,000 | 206,230 |
| 4.20%, 03/15/42 | 450,000 | 547,031 |
| 4.45%, 03/15/44 (a) | 230,000 | 289,844 |
| 4.50%, 12/01/45 (a) | 150,000 | 191,052 |
| 3.85%, 06/15/46 (a) | 200,000 | 235,432 |
| 3.88%, 06/15/47 (a) | 150,000 | 177,250 |
| 4.65%, 12/01/48 (a) | 100,000 | 131,024 |
| 4.13%, 05/15/49 (a) | 100,000 | 123,533 |
| 3.95%, 04/01/50 (a) | 250,000 | 302,575 |
| 4.63%, 12/01/54 (a) | 100,000 | 130,967 |
| 4.00%, 11/15/57 (a) | 100,000 | 119,997 |
| 4.50%, 05/15/58 (a) | 100,000 | 129,678 |
| 3.70%, 11/15/59 (a) | 100,000 | 116,308 |
| Consumers Energy Co. |
| 3.38%, 08/15/23 (a) | 330,000 | 357,486 |
| 3.95%, 05/15/43 (a) | 330,000 | 406,699 |
| 4.05%, 05/15/48 (a) | 100,000 | 128,140 |
| 4.35%, 04/15/49 (a) | 100,000 | 134,628 |
| 2.50%, 05/01/60 (a) | 200,000 | 194,841 |
| Delmarva Power & Light Co. |
| 3.50%, 11/15/23 (a) | 200,000 | 218,221 |
| Dominion Energy South Carolina, Inc. |
| 6.05%, 01/15/38 | 100,000 | 146,721 |
| 5.45%, 02/01/41 (a) | 100,000 | 140,045 |
| 5.10%, 06/01/65 (a) | 100,000 | 151,045 |
| Dominion Energy, Inc. |
| 2.00%, 08/15/21 (a) | 200,000 | 202,833 |
| 3.90%, 10/01/25 (a) | 150,000 | 171,538 |
| 2.85%, 08/15/26 (a) | 300,000 | 331,107 |
| 4.25%, 06/01/28 (a) | 150,000 | 177,073 |
| 3.38%, 04/01/30 (a) | 200,000 | 227,941 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 5.25%, 08/01/33 | 180,000 | 228,684 |
| 5.95%, 06/15/35 | 100,000 | 138,527 |
| 7.00%, 06/15/38 | 100,000 | 147,886 |
| 4.90%, 08/01/41 (a) | 100,000 | 130,135 |
| 4.05%, 09/15/42 (a) | 100,000 | 117,557 |
| 4.70%, 12/01/44 (a) | 150,000 | 197,569 |
| 4.60%, 03/15/49 (a) | 100,000 | 134,233 |
| 5.75%, 10/01/54 (a)(b) | 150,000 | 159,451 |
| DTE Electric Co. |
| 2.25%, 03/01/30 (a) | 150,000 | 160,379 |
| 2.63%, 03/01/31 (a) | 300,000 | 332,145 |
| 3.70%, 03/15/45 (a) | 250,000 | 298,239 |
| 3.75%, 08/15/47 (a) | 150,000 | 181,495 |
| 4.05%, 05/15/48 (a) | 100,000 | 126,572 |
| 3.95%, 03/01/49 (a) | 150,000 | 188,779 |
| 2.95%, 03/01/50 (a) | 100,000 | 106,869 |
| DTE Energy Co. |
| 2.25%, 11/01/22 | 250,000 | 259,184 |
| 3.70%, 08/01/23 (a) | 150,000 | 163,094 |
| 3.50%, 06/01/24 (a) | 200,000 | 218,007 |
| 2.53%, 10/01/24 | 100,000 | 106,401 |
| 1.05%, 06/01/25 (a) | 200,000 | 200,945 |
| 2.85%, 10/01/26 (a) | 300,000 | 326,494 |
| 3.40%, 06/15/29 (a) | 100,000 | 111,694 |
| 2.95%, 03/01/30 (a) | 100,000 | 107,549 |
| Duke Energy Carolinas LLC |
| 3.95%, 11/15/28 (a) | 150,000 | 181,858 |
| 2.45%, 08/15/29 (a) | 150,000 | 163,891 |
| 2.45%, 02/01/30 (a) | 100,000 | 108,907 |
| 6.45%, 10/15/32 | 230,000 | 332,222 |
| 6.05%, 04/15/38 | 150,000 | 226,108 |
| 5.30%, 02/15/40 | 150,000 | 213,188 |
| 4.25%, 12/15/41 (a) | 155,000 | 198,505 |
| 3.75%, 06/01/45 (a) | 150,000 | 180,550 |
| 3.88%, 03/15/46 (a) | 100,000 | 123,592 |
| 3.70%, 12/01/47 (a) | 150,000 | 180,069 |
| 3.95%, 03/15/48 (a) | 100,000 | 125,497 |
| 3.20%, 08/15/49 (a) | 150,000 | 170,201 |
| Duke Energy Corp. |
| 1.80%, 09/01/21 (a) | 150,000 | 151,999 |
| 3.55%, 09/15/21 (a) | 250,000 | 256,239 |
| 3.05%, 08/15/22 (a) | 200,000 | 208,974 |
| 3.75%, 04/15/24 (a) | 455,000 | 501,856 |
| 2.65%, 09/01/26 (a) | 200,000 | 218,654 |
| 3.15%, 08/15/27 (a) | 200,000 | 222,825 |
| 3.40%, 06/15/29 (a) | 200,000 | 226,893 |
| 2.45%, 06/01/30 (a) | 250,000 | 265,000 |
| 3.75%, 09/01/46 (a) | 250,000 | 288,956 |
| 3.95%, 08/15/47 (a) | 100,000 | 118,869 |
| 4.20%, 06/15/49 (a) | 100,000 | 124,540 |
| Duke Energy Florida LLC |
| 3.20%, 01/15/27 (a) | 555,000 | 627,469 |
| 3.80%, 07/15/28 (a) | 150,000 | 176,968 |
| 1.75%, 06/15/30 (a) | 250,000 | 258,022 |
| 6.35%, 09/15/37 | 150,000 | 229,078 |
| 3.40%, 10/01/46 (a) | 350,000 | 398,839 |
| 4.20%, 07/15/48 (a) | 150,000 | 191,368 |
| Duke Energy Indiana LLC |
| 6.35%, 08/15/38 | 200,000 | 304,601 |
| 4.90%, 07/15/43 (a) | 100,000 | 134,886 |
| 3.25%, 10/01/49 (a) | 150,000 | 169,115 |
| 2.75%, 04/01/50 (a) | 100,000 | 102,937 |
| Duke Energy Ohio, Inc. |
| 2.13%, 06/01/30 (a) | 300,000 | 317,920 |
| 4.30%, 02/01/49 (a) | 150,000 | 194,554 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Duke Energy Progress LLC |
| 3.70%, 09/01/28 (a) | 200,000 | 235,527 |
| 4.10%, 05/15/42 (a) | 100,000 | 124,349 |
| 4.10%, 03/15/43 (a) | 150,000 | 184,701 |
| 4.15%, 12/01/44 (a) | 278,000 | 351,598 |
| 4.20%, 08/15/45 (a) | 200,000 | 254,979 |
| 3.70%, 10/15/46 (a) | 250,000 | 300,846 |
| 2.50%, 08/15/50 (a) | 250,000 | 247,454 |
| Edison International |
| 2.40%, 09/15/22 (a) | 100,000 | 101,923 |
| 3.55%, 11/15/24 (a) | 100,000 | 106,657 |
| 4.95%, 04/15/25 (a) | 150,000 | 165,246 |
| 5.75%, 06/15/27 (a) | 100,000 | 113,568 |
| 4.13%, 03/15/28 (a) | 100,000 | 104,548 |
| El Paso Electric Co. |
| 6.00%, 05/15/35 | 44,000 | 58,621 |
| Emera US Finance LP |
| 2.70%, 06/15/21 (a) | 200,000 | 203,058 |
| 3.55%, 06/15/26 (a) | 150,000 | 169,002 |
| 4.75%, 06/15/46 (a) | 150,000 | 186,787 |
| Enel Americas S.A. |
| 4.00%, 10/25/26 (a) | 100,000 | 109,821 |
| Enel Chile S.A. |
| 4.88%, 06/12/28 (a) | 100,000 | 120,573 |
| Enel Generacion Chile S.A. |
| 4.25%, 04/15/24 (a) | 100,000 | 109,961 |
| Entergy Arkansas LLC |
| 3.70%, 06/01/24 (a) | 200,000 | 220,957 |
| 4.20%, 04/01/49 (a) | 150,000 | 192,248 |
| Entergy Corp. |
| 0.90%, 09/15/25 (a) | 250,000 | 250,229 |
| 2.95%, 09/01/26 (a) | 150,000 | 166,978 |
| 2.80%, 06/15/30 (a) | 250,000 | 273,315 |
| Entergy Louisiana LLC |
| 4.05%, 09/01/23 (a) | 100,000 | 109,678 |
| 2.40%, 10/01/26 (a) | 400,000 | 436,398 |
| 3.25%, 04/01/28 (a) | 250,000 | 281,234 |
| 4.00%, 03/15/33 (a) | 100,000 | 125,777 |
| 4.20%, 09/01/48 (a) | 100,000 | 129,891 |
| 4.20%, 04/01/50 (a) | 150,000 | 195,877 |
| Entergy Mississippi LLC |
| 3.85%, 06/01/49 (a) | 100,000 | 123,498 |
| Entergy Texas, Inc. |
| 4.50%, 03/30/39 (a) | 250,000 | 307,759 |
| 3.55%, 09/30/49 (a) | 100,000 | 114,749 |
| Evergy Kansas Central, Inc. |
| 3.10%, 04/01/27 (a) | 200,000 | 221,934 |
| 4.13%, 03/01/42 (a) | 100,000 | 122,339 |
| 4.25%, 12/01/45 (a) | 100,000 | 127,217 |
| 3.45%, 04/15/50 (a) | 150,000 | 174,605 |
| Evergy Metro, Inc. |
| 4.20%, 03/15/48 (a) | 300,000 | 384,639 |
| Evergy, Inc. |
| 2.45%, 09/15/24 (a) | 200,000 | 212,350 |
| 2.90%, 09/15/29 (a) | 250,000 | 271,875 |
| Eversource Energy |
| 2.75%, 03/15/22 (a) | 200,000 | 206,796 |
| 3.80%, 12/01/23 (a) | 150,000 | 164,914 |
| 3.15%, 01/15/25 (a) | 330,000 | 361,013 |
| 0.80%, 08/15/25 (a) | 200,000 | 200,465 |
| 3.30%, 01/15/28 (a) | 100,000 | 111,829 |
| 1.65%, 08/15/30 (a) | 250,000 | 250,595 |
| 3.45%, 01/15/50 (a) | 250,000 | 282,635 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Exelon Corp. |
| 3.95%, 06/15/25 (a) | 250,000 | 286,337 |
| 4.05%, 04/15/30 (a) | 300,000 | 356,080 |
| 4.95%, 06/15/35 (a)(c) | 230,000 | 290,491 |
| 5.63%, 06/15/35 | 500,000 | 677,700 |
| 4.45%, 04/15/46 (a) | 200,000 | 246,086 |
| 4.70%, 04/15/50 (a) | 100,000 | 130,290 |
| Exelon Generation Co., LLC |
| 3.40%, 03/15/22 (a) | 400,000 | 417,710 |
| 4.25%, 06/15/22 (a) | 150,000 | 159,511 |
| 3.25%, 06/01/25 (a) | 250,000 | 276,275 |
| 6.25%, 10/01/39 | 262,000 | 324,408 |
| 5.75%, 10/01/41 (a) | 100,000 | 117,115 |
| FirstEnergy Corp. |
| 4.25%, 03/15/23 (a) | 200,000 | 212,850 |
| 1.60%, 01/15/26 (a) | 200,000 | 199,859 |
| 3.90%, 07/15/27 (a) | 500,000 | 550,467 |
| 2.65%, 03/01/30 (a) | 50,000 | 51,566 |
| 2.25%, 09/01/30 (a) | 100,000 | 99,777 |
| 7.38%, 11/15/31 | 250,000 | 354,281 |
| 4.85%, 07/15/47 (a) | 150,000 | 182,327 |
| 3.40%, 03/01/50 (a) | 100,000 | 101,691 |
| Florida Power & Light Co. |
| 2.85%, 04/01/25 (a) | 150,000 | 164,957 |
| 5.63%, 04/01/34 | 150,000 | 221,027 |
| 5.65%, 02/01/37 | 100,000 | 143,948 |
| 5.96%, 04/01/39 | 200,000 | 302,660 |
| 5.69%, 03/01/40 | 300,000 | 445,719 |
| 5.25%, 02/01/41 (a) | 250,000 | 360,002 |
| 4.05%, 06/01/42 (a) | 250,000 | 314,042 |
| 3.70%, 12/01/47 (a) | 100,000 | 123,276 |
| 3.95%, 03/01/48 (a) | 100,000 | 128,787 |
| 4.13%, 06/01/48 (a) | 250,000 | 334,295 |
| 3.99%, 03/01/49 (a) | 250,000 | 322,077 |
| 3.15%, 10/01/49 (a) | 100,000 | 114,351 |
| Fortis, Inc. |
| 3.06%, 10/04/26 (a) | 155,000 | 169,584 |
| Georgia Power Co. |
| 2.85%, 05/15/22 | 150,000 | 156,049 |
| 2.10%, 07/30/23 | 200,000 | 209,603 |
| 2.65%, 09/15/29 (a) | 150,000 | 161,384 |
| 4.75%, 09/01/40 | 150,000 | 185,896 |
| 4.30%, 03/15/42 | 150,000 | 178,738 |
| 4.30%, 03/15/43 | 100,000 | 118,978 |
| 3.70%, 01/30/50 (a) | 100,000 | 113,615 |
| Gulf Power Co. |
| 3.30%, 05/30/27 (a) | 450,000 | 508,615 |
| Iberdrola International BV |
| 6.75%, 07/15/36 | 100,000 | 145,169 |
| Indiana Michigan Power Co. |
| 3.75%, 07/01/47 (a) | 100,000 | 116,648 |
| 4.25%, 08/15/48 (a) | 100,000 | 126,773 |
| Interstate Power & Light Co. |
| 3.25%, 12/01/24 (a) | 100,000 | 110,414 |
| 2.30%, 06/01/30 (a) | 200,000 | 210,961 |
| 6.25%, 07/15/39 | 150,000 | 217,693 |
| 3.50%, 09/30/49 (a) | 100,000 | 114,890 |
| ITC Holdings Corp. |
| 2.70%, 11/15/22 (a) | 200,000 | 209,381 |
| 3.25%, 06/30/26 (a) | 100,000 | 111,791 |
| 5.30%, 07/01/43 (a) | 100,000 | 132,740 |
| Kentucky Utilities Co. |
| 5.13%, 11/01/40 (a) | 100,000 | 136,428 |
| 4.38%, 10/01/45 (a) | 100,000 | 126,483 |
| 3.30%, 06/01/50 (a) | 250,000 | 276,439 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Louisville Gas & Electric Co. |
| 4.25%, 04/01/49 (a) | 150,000 | 188,882 |
| McCormick & Co., Inc. |
| 2.90%, 03/01/50 (a) | 150,000 | 161,665 |
| MidAmerican Energy Co. |
| 6.75%, 12/30/31 | 100,000 | 152,196 |
| 4.80%, 09/15/43 (a) | 100,000 | 135,093 |
| 4.40%, 10/15/44 (a) | 100,000 | 128,858 |
| 4.25%, 05/01/46 (a) | 100,000 | 127,961 |
| 3.95%, 08/01/47 (a) | 150,000 | 189,286 |
| 3.65%, 08/01/48 (a) | 150,000 | 180,723 |
| 4.25%, 07/15/49 (a) | 150,000 | 200,255 |
| 3.15%, 04/15/50 (a) | 100,000 | 112,787 |
| Mississippi Power Co. |
| 4.25%, 03/15/42 | 100,000 | 116,914 |
| National Rural Utilities Cooperative Finance Corp. |
| 2.40%, 04/25/22 (a) | 850,000 | 877,289 |
| 2.40%, 03/15/30 (a) | 150,000 | 164,824 |
| 4.02%, 11/01/32 (a) | 150,000 | 184,753 |
| 4.75%, 04/30/43 (a)(b) | 100,000 | 102,902 |
| 4.40%, 11/01/48 (a) | 150,000 | 201,273 |
| 4.30%, 03/15/49 (a) | 100,000 | 131,239 |
| Nevada Power Co. |
| 3.70%, 05/01/29 (a) | 250,000 | 294,561 |
| 6.75%, 07/01/37 | 100,000 | 152,822 |
| 3.13%, 08/01/50 (a) | 100,000 | 109,771 |
| NextEra Energy Capital Holdings, Inc. |
| 2.40%, 09/01/21 | 200,000 | 204,214 |
| 3.20%, 02/25/22 | 150,000 | 156,283 |
| 2.90%, 04/01/22 | 250,000 | 259,829 |
| 3.30%, 08/15/22 | 100,000 | 105,544 |
| 3.15%, 04/01/24 (a) | 250,000 | 271,589 |
| 2.75%, 05/01/25 (a) | 400,000 | 435,536 |
| 3.25%, 04/01/26 (a) | 100,000 | 112,715 |
| 3.55%, 05/01/27 (a) | 250,000 | 286,796 |
| 3.50%, 04/01/29 (a) | 150,000 | 172,224 |
| 2.75%, 11/01/29 (a) | 150,000 | 164,408 |
| 2.25%, 06/01/30 (a) | 300,000 | 316,131 |
| 4.80%, 12/01/77 (a)(b) | 200,000 | 216,174 |
| Northern States Power Co. |
| 5.30%, 06/01/42 (a) | 100,000 | 142,471 |
| 4.00%, 08/15/45 (a) | 150,000 | 189,021 |
| 3.60%, 05/15/46 (a) | 200,000 | 239,166 |
| 3.60%, 09/15/47 (a) | 350,000 | 423,314 |
| NSTAR Electric Co. |
| 5.50%, 03/15/40 | 300,000 | 426,219 |
| Oglethorpe Power Corp. |
| 5.95%, 11/01/39 | 100,000 | 128,200 |
| 5.38%, 11/01/40 | 200,000 | 244,612 |
| 3.75%, 08/01/50 (a) | 250,000 | 249,475 |
| Ohio Edison Co. |
| 6.88%, 07/15/36 | 100,000 | 143,531 |
| Ohio Power Co. |
| 2.60%, 04/01/30 (a) | 200,000 | 219,781 |
| 4.00%, 06/01/49 (a) | 50,000 | 61,636 |
| Oklahoma Gas & Electric Co. |
| 3.80%, 08/15/28 (a) | 250,000 | 288,041 |
| 3.30%, 03/15/30 (a) | 100,000 | 112,689 |
| 3.25%, 04/01/30 (a) | 250,000 | 280,270 |
| Oncor Electric Delivery Co., LLC |
| 2.75%, 06/01/24 (a) | 250,000 | 270,160 |
| 2.95%, 04/01/25 (a) | 100,000 | 109,510 |
| 3.70%, 11/15/28 (a) | 100,000 | 117,798 |
| 7.00%, 05/01/32 | 115,000 | 172,748 |
| 4.55%, 12/01/41 (a) | 480,000 | 631,490 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.80%, 06/01/49 (a) | 100,000 | 123,831 |
| 3.10%, 09/15/49 (a) | 150,000 | 165,639 |
| 3.70%, 05/15/50 (a) | 100,000 | 122,975 |
| Pacific Gas & Electric Co. |
| 1.75%, 06/16/22 (a) | 500,000 | 501,910 |
| 4.25%, 08/01/23 (a) | 500,000 | 535,845 |
| 3.15%, 01/01/26 | 750,000 | 778,005 |
| 2.10%, 08/01/27 (a) | 250,000 | 243,817 |
| 4.55%, 07/01/30 (a) | 750,000 | 830,756 |
| 2.50%, 02/01/31 (a) | 450,000 | 435,400 |
| 4.50%, 07/01/40 | 750,000 | 800,029 |
| 3.30%, 08/01/40 (a) | 250,000 | 237,325 |
| 4.30%, 03/15/45 (a) | 350,000 | 351,004 |
| 3.95%, 12/01/47 (a) | 200,000 | 193,066 |
| 4.95%, 07/01/50 (a) | 750,000 | 832,181 |
| 3.50%, 08/01/50 (a) | 350,000 | 329,810 |
| PacifiCorp |
| 3.85%, 06/15/21 (a) | 150,000 | 152,878 |
| 3.50%, 06/15/29 (a) | 150,000 | 175,633 |
| 2.70%, 09/15/30 (a) | 200,000 | 222,378 |
| 6.25%, 10/15/37 | 100,000 | 148,194 |
| 6.00%, 01/15/39 | 330,000 | 491,979 |
| 4.13%, 01/15/49 (a) | 150,000 | 188,815 |
| 4.15%, 02/15/50 (a) | 100,000 | 126,658 |
| 3.30%, 03/15/51 (a) | 100,000 | 114,065 |
| PECO Energy Co. |
| 4.15%, 10/01/44 (a) | 100,000 | 125,938 |
| 3.90%, 03/01/48 (a) | 150,000 | 188,158 |
| 3.00%, 09/15/49 (a) | 100,000 | 110,415 |
| 2.80%, 06/15/50 (a) | 100,000 | 105,891 |
| Pinnacle West Capital Corp. |
| 1.30%, 06/15/25 (a) | 175,000 | 178,818 |
| Potomac Electric Power Co. |
| 3.60%, 03/15/24 (a) | 150,000 | 164,821 |
| 4.15%, 03/15/43 (a) | 100,000 | 121,703 |
| PPL Capital Funding, Inc. |
| 3.40%, 06/01/23 (a) | 374,000 | 399,499 |
| 3.10%, 05/15/26 (a) | 250,000 | 278,172 |
| 4.13%, 04/15/30 (a) | 200,000 | 236,613 |
| 4.00%, 09/15/47 (a) | 100,000 | 117,280 |
| PPL Electric Utilities Corp. |
| 4.75%, 07/15/43 (a) | 50,000 | 67,215 |
| 4.13%, 06/15/44 (a) | 100,000 | 123,167 |
| 3.95%, 06/01/47 (a) | 150,000 | 184,792 |
| 4.15%, 06/15/48 (a) | 100,000 | 129,301 |
| Progress Energy, Inc. |
| 3.15%, 04/01/22 (a) | 250,000 | 259,079 |
| 7.75%, 03/01/31 | 150,000 | 226,216 |
| 6.00%, 12/01/39 | 250,000 | 351,532 |
| PSEG Power LLC |
| 3.00%, 06/15/21 (a) | 400,000 | 407,466 |
| 8.63%, 04/15/31 (d) | 180,000 | 264,319 |
| Public Service Co. of Colorado |
| 3.70%, 06/15/28 (a) | 200,000 | 233,770 |
| 1.90%, 01/15/31 (a) | 150,000 | 157,390 |
| 6.25%, 09/01/37 | 100,000 | 152,146 |
| 3.60%, 09/15/42 (a) | 100,000 | 118,566 |
| 4.30%, 03/15/44 (a) | 40,000 | 51,308 |
| 3.20%, 03/01/50 (a) | 100,000 | 114,577 |
| Public Service Co. of New Hampshire |
| 3.50%, 11/01/23 (a) | 200,000 | 217,464 |
| 3.60%, 07/01/49 (a) | 150,000 | 178,849 |
| Public Service Electric & Gas Co. |
| 3.20%, 05/15/29 (a) | 300,000 | 344,056 |
| 3.95%, 05/01/42 (a) | 150,000 | 184,309 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.80%, 03/01/46 (a) | 150,000 | 184,306 |
| 3.60%, 12/01/47 (a) | 100,000 | 121,302 |
| 3.85%, 05/01/49 (a) | 150,000 | 188,560 |
| 3.15%, 01/01/50 (a) | 100,000 | 113,456 |
| 2.70%, 05/01/50 (a) | 250,000 | 262,156 |
| 2.05%, 08/01/50 (a) | 200,000 | 183,998 |
| Public Service Enterprise Group, Inc. |
| 2.00%, 11/15/21 (a) | 200,000 | 203,474 |
| 2.88%, 06/15/24 (a) | 100,000 | 107,989 |
| 0.80%, 08/15/25 (a) | 250,000 | 250,281 |
| 1.60%, 08/15/30 (a) | 200,000 | 199,124 |
| Puget Energy, Inc. |
| 4.10%, 06/15/30 (a)(c) | 250,000 | 276,780 |
| Puget Sound Energy, Inc. |
| 6.27%, 03/15/37 | 362,000 | 525,494 |
| 4.22%, 06/15/48 (a) | 100,000 | 126,907 |
| 3.25%, 09/15/49 (a) | 100,000 | 110,725 |
| San Diego Gas & Electric Co. |
| 3.00%, 08/15/21 | 150,000 | 153,827 |
| 2.50%, 05/15/26 (a) | 150,000 | 162,493 |
| 6.00%, 06/01/39 | 250,000 | 365,129 |
| 4.50%, 08/15/40 | 100,000 | 126,165 |
| 4.15%, 05/15/48 (a) | 100,000 | 125,426 |
| 4.10%, 06/15/49 (a) | 100,000 | 125,023 |
| 3.32%, 04/15/50 (a) | 100,000 | 112,621 |
| Sempra Energy |
| 3.55%, 06/15/24 (a) | 150,000 | 164,002 |
| Southern California Edison Co. |
| 3.88%, 06/01/21 (a) | 150,000 | 152,835 |
| 3.40%, 06/01/23 (a) | 100,000 | 107,076 |
| 3.50%, 10/01/23 (a) | 300,000 | 322,944 |
| 3.65%, 03/01/28 (a) | 250,000 | 280,380 |
| 4.20%, 03/01/29 (a) | 100,000 | 115,782 |
| 2.85%, 08/01/29 (a) | 100,000 | 106,374 |
| 2.25%, 06/01/30 (a) | 150,000 | 152,569 |
| 5.55%, 01/15/37 | 150,000 | 190,263 |
| 5.95%, 02/01/38 | 100,000 | 131,703 |
| 5.50%, 03/15/40 | 100,000 | 127,369 |
| 4.50%, 09/01/40 (a) | 150,000 | 174,671 |
| 4.05%, 03/15/42 (a) | 100,000 | 110,979 |
| 3.90%, 03/15/43 (a) | 150,000 | 161,740 |
| 4.65%, 10/01/43 (a) | 150,000 | 176,959 |
| 3.60%, 02/01/45 (a) | 100,000 | 103,091 |
| 4.00%, 04/01/47 (a) | 400,000 | 437,150 |
| 4.13%, 03/01/48 (a) | 250,000 | 278,306 |
| 4.88%, 03/01/49 (a) | 100,000 | 122,911 |
| 3.65%, 02/01/50 (a) | 200,000 | 213,076 |
| Southern Power Co. |
| 4.15%, 12/01/25 (a) | 100,000 | 115,043 |
| 5.25%, 07/15/43 | 50,000 | 58,725 |
| 4.95%, 12/15/46 (a) | 100,000 | 113,259 |
| Southwestern Electric Power Co. |
| 2.75%, 10/01/26 (a) | 150,000 | 162,001 |
| 3.90%, 04/01/45 (a) | 200,000 | 226,913 |
| 3.85%, 02/01/48 (a) | 150,000 | 168,595 |
| Southwestern Public Service Co. |
| 4.50%, 08/15/41 (a) | 150,000 | 189,990 |
| 3.40%, 08/15/46 (a) | 150,000 | 167,769 |
| 3.70%, 08/15/47 (a) | 100,000 | 115,255 |
| 3.15%, 05/01/50 (a) | 250,000 | 274,001 |
| Tampa Electric Co. |
| 4.30%, 06/15/48 (a) | 250,000 | 319,189 |
| The Connecticut Light and Power Co |
| 4.00%, 04/01/48 (a) | 200,000 | 256,874 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| The Dayton Power & Light Co |
| 3.95%, 06/15/49 (a) | 100,000 | 108,345 |
| The Southern Co. |
| 2.35%, 07/01/21 (a) | 500,000 | 507,600 |
| 2.95%, 07/01/23 (a) | 250,000 | 266,534 |
| 3.25%, 07/01/26 (a) | 300,000 | 336,828 |
| 3.70%, 04/30/30 (a) | 250,000 | 286,729 |
| 4.25%, 07/01/36 (a) | 150,000 | 174,793 |
| 4.40%, 07/01/46 (a) | 250,000 | 300,261 |
| 5.50%, 03/15/57 (a)(b) | 100,000 | 103,588 |
| The Toledo Edison Co. |
| 6.15%, 05/15/37 | 100,000 | 142,710 |
| Tucson Electric Power Co. |
| 1.50%, 08/01/30 (a) | 200,000 | 198,296 |
| 4.85%, 12/01/48 (a) | 50,000 | 68,075 |
| 4.00%, 06/15/50 (a) | 100,000 | 120,808 |
| Union Electric Co. |
| 3.50%, 03/15/29 (a) | 150,000 | 174,001 |
| 2.95%, 03/15/30 (a) | 200,000 | 226,418 |
| 3.90%, 09/15/42 (a) | 40,000 | 48,084 |
| 4.00%, 04/01/48 (a) | 250,000 | 314,111 |
| Virginia Electric & Power Co. |
| 3.45%, 09/01/22 (a) | 350,000 | 367,969 |
| 2.75%, 03/15/23 (a) | 100,000 | 105,419 |
| 3.50%, 03/15/27 (a) | 250,000 | 284,861 |
| 3.80%, 04/01/28 (a) | 150,000 | 177,337 |
| 2.88%, 07/15/29 (a) | 250,000 | 280,574 |
| 6.00%, 05/15/37 | 300,000 | 434,908 |
| 8.88%, 11/15/38 | 150,000 | 274,894 |
| 4.00%, 01/15/43 (a) | 100,000 | 122,903 |
| 4.45%, 02/15/44 (a) | 100,000 | 132,061 |
| 4.20%, 05/15/45 (a) | 100,000 | 128,536 |
| 3.80%, 09/15/47 (a) | 150,000 | 184,832 |
| 4.60%, 12/01/48 (a) | 150,000 | 208,172 |
| 3.30%, 12/01/49 (a) | 350,000 | 413,509 |
| WEC Energy Group, Inc. |
| 3.38%, 06/15/21 | 100,000 | 102,372 |
| 3.10%, 03/08/22 | 100,000 | 104,262 |
| Wisconsin Electric Power Co. |
| 4.30%, 10/15/48 (a) | 100,000 | 127,743 |
| Wisconsin Power & Light Co. |
| 3.00%, 07/01/29 (a) | 100,000 | 112,202 |
| 3.65%, 04/01/50 (a) | 100,000 | 118,070 |
| Wisconsin Public Service Corp. |
| 3.35%, 11/21/21 | 100,000 | 103,712 |
| 3.67%, 12/01/42 | 250,000 | 291,766 |
| Xcel Energy, Inc. |
| 2.60%, 03/15/22 (a) | 150,000 | 154,834 |
| 4.00%, 06/15/28 (a) | 250,000 | 295,081 |
| 2.60%, 12/01/29 (a) | 100,000 | 108,417 |
| 3.40%, 06/01/30 (a) | 100,000 | 115,449 |
| 3.50%, 12/01/49 (a) | 100,000 | 113,982 |
| | | 97,586,258 |
| Natural Gas 0.2% |
| Atmos Energy Corp. |
| 2.63%, 09/15/29 (a) | 125,000 | 137,882 |
| 4.13%, 10/15/44 (a) | 300,000 | 374,652 |
| 4.30%, 10/01/48 (a) | 100,000 | 130,852 |
| 4.13%, 03/15/49 (a) | 100,000 | 126,120 |
| 3.38%, 09/15/49 (a) | 100,000 | 115,048 |
| CenterPoint Energy Resources Corp. |
| 4.00%, 04/01/28 (a) | 100,000 | 113,852 |
| 5.85%, 01/15/41 (a) | 100,000 | 136,095 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| NiSource, Inc. |
| 0.95%, 08/15/25 (a) | 350,000 | 351,113 |
| 3.49%, 05/15/27 (a) | 250,000 | 283,565 |
| 2.95%, 09/01/29 (a) | 100,000 | 109,896 |
| 3.60%, 05/01/30 (a) | 200,000 | 230,757 |
| 1.70%, 02/15/31 (a) | 350,000 | 347,188 |
| 5.25%, 02/15/43 (a) | 195,000 | 262,457 |
| 4.80%, 02/15/44 (a) | 409,000 | 527,424 |
| 3.95%, 03/30/48 (a) | 100,000 | 119,619 |
| ONE Gas, Inc. |
| 2.00%, 05/15/30 (a) | 200,000 | 208,479 |
| 4.66%, 02/01/44 (a) | 100,000 | 129,127 |
| 4.50%, 11/01/48 (a) | 100,000 | 128,848 |
| Piedmont Natural Gas Co., Inc. |
| 3.50%, 06/01/29 (a) | 150,000 | 172,966 |
| 3.64%, 11/01/46 (a) | 100,000 | 113,880 |
| 3.35%, 06/01/50 (a) | 100,000 | 111,057 |
| Sempra Energy |
| 2.90%, 02/01/23 (a) | 250,000 | 263,360 |
| 3.75%, 11/15/25 (a) | 150,000 | 170,411 |
| 3.25%, 06/15/27 (a) | 200,000 | 222,240 |
| 3.40%, 02/01/28 (a) | 200,000 | 223,650 |
| 3.80%, 02/01/38 (a) | 150,000 | 172,079 |
| 6.00%, 10/15/39 | 150,000 | 211,750 |
| 4.00%, 02/01/48 (a) | 150,000 | 174,704 |
| Southern California Gas Co. |
| 3.15%, 09/15/24 (a) | 50,000 | 54,668 |
| 2.60%, 06/15/26 (a) | 130,000 | 142,099 |
| 2.55%, 02/01/30 (a) | 100,000 | 109,380 |
| 3.75%, 09/15/42 (a) | 150,000 | 177,919 |
| 4.30%, 01/15/49 (a) | 350,000 | 460,729 |
| 3.95%, 02/15/50 (a) | 100,000 | 126,775 |
| Southern Co. Gas Capital Corp. |
| 2.45%, 10/01/23 (a) | 150,000 | 157,744 |
| 1.75%, 01/15/31 (a) | 250,000 | 248,269 |
| 5.88%, 03/15/41 (a) | 150,000 | 208,431 |
| 4.40%, 06/01/43 (a) | 75,000 | 89,177 |
| 3.95%, 10/01/46 (a) | 150,000 | 169,876 |
| Southwest Gas Corp. |
| 2.20%, 06/15/30 (a) | 250,000 | 264,157 |
| 4.15%, 06/01/49 (a) | 100,000 | 120,151 |
| Washington Gas Light Co. |
| 3.80%, 09/15/46 (a) | 100,000 | 113,831 |
| | | 8,112,277 |
| Utility Other 0.0% |
| American Water Capital Corp. |
| 3.40%, 03/01/25 (a) | 150,000 | 166,334 |
| 3.75%, 09/01/28 (a) | 240,000 | 282,150 |
| 3.45%, 06/01/29 (a) | 100,000 | 115,158 |
| 2.80%, 05/01/30 (a) | 200,000 | 221,743 |
| 3.75%, 09/01/47 (a) | 600,000 | 711,942 |
| 4.15%, 06/01/49 (a) | 150,000 | 189,222 |
| 3.45%, 05/01/50 (a) | 100,000 | 114,961 |
| Essential Utilities, Inc. |
| 3.57%, 05/01/29 (a) | 100,000 | 113,791 |
| 2.70%, 04/15/30 (a) | 100,000 | 108,261 |
| 4.28%, 05/01/49 (a) | 100,000 | 126,559 |
| 3.35%, 04/15/50 (a) | 100,000 | 109,220 |
| | | 2,259,341 |
| | | 107,957,876 |
| Total Corporates |
| (Cost $1,188,174,641) | | 1,287,766,752 |
|
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Treasuries 37.1% of net assets |
| Bonds |
| 8.00%, 11/15/21 | 1,500,000 | 1,642,324 |
| 7.25%, 08/15/22 | 1,000,000 | 1,139,160 |
| 7.63%, 11/15/22 | 327,600 | 381,718 |
| 7.13%, 02/15/23 (d) | 2,500,000 | 2,929,004 |
| 6.25%, 08/15/23 | 775,000 | 914,954 |
| 7.50%, 11/15/24 | 300,000 | 391,500 |
| 7.63%, 02/15/25 | 550,000 | 730,447 |
| 6.88%, 08/15/25 | 500,000 | 662,461 |
| 6.00%, 02/15/26 (d) | 1,310,800 | 1,712,693 |
| 6.75%, 08/15/26 | 250,000 | 344,316 |
| 6.50%, 11/15/26 | 655,300 | 901,473 |
| 6.63%, 02/15/27 (d) | 1,196,400 | 1,670,847 |
| 0.38%, 07/31/27 | 8,600,000 | 8,542,891 |
| 6.38%, 08/15/27 | 743,300 | 1,045,672 |
| 0.50%, 08/31/27 | 11,600,000 | 11,615,406 |
| 6.13%, 11/15/27 (d) | 1,509,500 | 2,116,602 |
| 5.50%, 08/15/28 (d) | 980,000 | 1,359,750 |
| 5.25%, 11/15/28 | 1,188,100 | 1,637,722 |
| 5.25%, 02/15/29 | 1,795,300 | 2,490,558 |
| 6.13%, 08/15/29 | 600,000 | 890,344 |
| 6.25%, 05/15/30 | 850,000 | 1,299,703 |
| 0.63%, 08/15/30 | 16,200,000 | 16,094,953 |
| 5.38%, 02/15/31 | 1,760,000 | 2,596,550 |
| 4.50%, 02/15/36 | 4,558,700 | 6,901,801 |
| 4.75%, 02/15/37 | 2,130,000 | 3,356,081 |
| 5.00%, 05/15/37 | 3,120,000 | 5,058,544 |
| 4.38%, 02/15/38 | 2,677,600 | 4,119,320 |
| 4.50%, 05/15/38 | 1,410,000 | 2,201,913 |
| 3.50%, 02/15/39 | 1,755,300 | 2,461,534 |
| 4.25%, 05/15/39 | 1,829,500 | 2,803,137 |
| 4.50%, 08/15/39 | 2,323,300 | 3,668,454 |
| 4.38%, 11/15/39 | 2,375,900 | 3,706,404 |
| 4.63%, 02/15/40 (d) | 3,048,600 | 4,903,483 |
| 1.13%, 05/15/40 | 10,500,000 | 10,355,625 |
| 4.38%, 05/15/40 | 2,677,000 | 4,197,452 |
| 1.13%, 08/15/40 | 5,800,000 | 5,696,234 |
| 3.88%, 08/15/40 (d) | 2,509,100 | 3,710,920 |
| 4.25%, 11/15/40 | 2,173,600 | 3,372,306 |
| 4.75%, 02/15/41 (d) | 2,900,000 | 4,779,563 |
| 4.38%, 05/15/41 | 3,113,700 | 4,920,619 |
| 3.75%, 08/15/41 | 2,503,600 | 3,671,295 |
| 3.13%, 11/15/41 | 2,281,600 | 3,078,912 |
| 3.13%, 02/15/42 | 2,430,900 | 3,288,362 |
| 3.00%, 05/15/42 | 2,305,300 | 3,060,466 |
| 2.75%, 08/15/42 | 3,368,100 | 4,309,589 |
| 2.75%, 11/15/42 | 4,210,800 | 5,383,245 |
| 3.13%, 02/15/43 | 4,232,900 | 5,727,312 |
| 2.88%, 05/15/43 | 6,172,800 | 8,047,306 |
| 3.63%, 08/15/43 | 4,692,900 | 6,838,069 |
| 3.75%, 11/15/43 (d) | 4,552,900 | 6,755,721 |
| 3.63%, 02/15/44 | 6,862,900 | 10,017,153 |
| 3.38%, 05/15/44 | 6,493,600 | 9,157,498 |
| 3.13%, 08/15/44 | 6,338,200 | 8,618,467 |
| 3.00%, 11/15/44 | 6,153,600 | 8,215,056 |
| 2.50%, 02/15/45 (d) | 7,107,000 | 8,739,944 |
| 3.00%, 05/15/45 | 6,168,600 | 8,252,912 |
| 2.88%, 08/15/45 | 6,488,200 | 8,518,804 |
| 3.00%, 11/15/45 | 4,618,600 | 6,200,471 |
| 2.50%, 02/15/46 | 7,157,900 | 8,831,618 |
| 2.50%, 05/15/46 | 6,267,800 | 7,740,243 |
| 2.25%, 08/15/46 (d) | 7,495,800 | 8,849,143 |
| 2.88%, 11/15/46 | 5,148,900 | 6,806,202 |
| 3.00%, 02/15/47 | 6,836,600 | 9,247,570 |
| 3.00%, 05/15/47 | 6,019,000 | 8,150,572 |
| 2.75%, 08/15/47 | 6,875,000 | 8,929,980 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 2.75%, 11/15/47 | 8,550,000 | 11,119,676 |
| 3.00%, 02/15/48 | 6,650,000 | 9,042,961 |
| 3.13%, 05/15/48 | 7,500,000 | 10,435,547 |
| 3.00%, 08/15/48 | 7,450,000 | 10,164,012 |
| 3.38%, 11/15/48 | 8,600,000 | 12,526,437 |
| 3.00%, 02/15/49 | 7,550,000 | 10,335,242 |
| 2.88%, 05/15/49 | 9,750,000 | 13,075,664 |
| 2.25%, 08/15/49 | 8,800,000 | 10,483,688 |
| 2.38%, 11/15/49 | 7,850,000 | 9,602,145 |
| 2.00%, 02/15/50 | 9,520,000 | 10,790,325 |
| 1.25%, 05/15/50 | 7,150,000 | 6,793,617 |
| 1.38%, 08/15/50 | 9,000,000 | 8,832,656 |
| Notes |
| 2.88%, 10/15/21 | 3,700,000 | 3,813,385 |
| 1.25%, 10/31/21 | 6,655,300 | 6,741,481 |
| 1.50%, 10/31/21 | 6,600,000 | 6,704,543 |
| 2.00%, 10/31/21 | 6,810,800 | 6,958,323 |
| 2.00%, 11/15/21 (d) | 9,088,200 | 9,292,862 |
| 2.88%, 11/15/21 (d) | 8,100,000 | 8,367,521 |
| 1.50%, 11/30/21 | 7,500,000 | 7,627,734 |
| 1.75%, 11/30/21 (d) | 6,979,900 | 7,120,316 |
| 1.88%, 11/30/21 | 6,000,000 | 6,130,078 |
| 2.63%, 12/15/21 | 7,900,000 | 8,153,047 |
| 1.63%, 12/31/21 | 5,500,000 | 5,608,926 |
| 2.00%, 12/31/21 | 7,026,900 | 7,201,200 |
| 2.13%, 12/31/21 | 5,302,200 | 5,442,315 |
| 2.50%, 01/15/22 | 6,000,000 | 6,193,945 |
| 1.38%, 01/31/22 | 5,900,000 | 6,003,250 |
| 1.50%, 01/31/22 | 7,519,100 | 7,663,755 |
| 1.88%, 01/31/22 | 6,674,500 | 6,837,973 |
| 2.00%, 02/15/22 | 7,455,300 | 7,657,117 |
| 2.50%, 02/15/22 | 7,000,000 | 7,240,215 |
| 1.13%, 02/28/22 | 7,500,000 | 7,611,035 |
| 1.75%, 02/28/22 | 6,760,800 | 6,923,878 |
| 1.88%, 02/28/22 | 6,000,000 | 6,155,859 |
| 2.38%, 03/15/22 | 7,200,000 | 7,447,500 |
| 0.38%, 03/31/22 | 11,500,000 | 11,544,023 |
| 1.75%, 03/31/22 (d) | 5,252,800 | 5,386,480 |
| 1.88%, 03/31/22 | 4,500,000 | 4,623,311 |
| 2.25%, 04/15/22 | 7,500,000 | 7,756,348 |
| 0.13%, 04/30/22 | 5,500,000 | 5,499,248 |
| 1.75%, 04/30/22 | 6,385,300 | 6,556,531 |
| 1.88%, 04/30/22 | 7,550,000 | 7,768,095 |
| 1.75%, 05/15/22 | 4,319,100 | 4,437,622 |
| 2.13%, 05/15/22 | 5,500,000 | 5,685,947 |
| 0.13%, 05/31/22 | 5,300,000 | 5,298,861 |
| 1.75%, 05/31/22 | 7,010,000 | 7,207,156 |
| 1.88%, 05/31/22 | 5,393,600 | 5,557,094 |
| 1.75%, 06/15/22 | 9,000,000 | 9,258,574 |
| 0.13%, 06/30/22 | 8,400,000 | 8,398,359 |
| 1.75%, 06/30/22 | 6,000,000 | 6,176,719 |
| 2.13%, 06/30/22 | 6,000,000 | 6,217,500 |
| 1.75%, 07/15/22 | 5,000,000 | 5,150,488 |
| 0.13%, 07/31/22 | 6,700,000 | 6,698,561 |
| 1.88%, 07/31/22 | 5,800,000 | 5,992,691 |
| 2.00%, 07/31/22 | 4,538,200 | 4,699,696 |
| 1.50%, 08/15/22 | 3,500,000 | 3,593,379 |
| 1.63%, 08/15/22 | 3,819,100 | 3,930,242 |
| 0.13%, 08/31/22 | 7,900,000 | 7,898,920 |
| 1.63%, 08/31/22 | 6,127,000 | 6,309,015 |
| 1.88%, 08/31/22 | 4,470,000 | 4,625,053 |
| 1.50%, 09/15/22 | 6,700,000 | 6,886,867 |
| 1.75%, 09/30/22 | 6,298,900 | 6,510,258 |
| 1.88%, 09/30/22 | 5,500,000 | 5,698,516 |
| 1.38%, 10/15/22 | 7,000,000 | 7,184,023 |
| 1.88%, 10/31/22 | 5,966,200 | 6,190,632 |
| 2.00%, 10/31/22 | 6,000,000 | 6,241,641 |
| 1.63%, 11/15/22 | 12,454,400 | 12,862,574 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 2.00%, 11/30/22 | 10,471,600 | 10,909,280 |
| 1.63%, 12/15/22 | 6,100,000 | 6,308,496 |
| 2.13%, 12/31/22 | 10,660,800 | 11,153,446 |
| 1.50%, 01/15/23 | 5,000,000 | 5,161,523 |
| 1.75%, 01/31/23 | 6,910,800 | 7,179,943 |
| 2.38%, 01/31/23 | 6,500,000 | 6,850,645 |
| 1.38%, 02/15/23 | 5,900,000 | 6,079,074 |
| 2.00%, 02/15/23 | 9,414,600 | 9,844,141 |
| 1.50%, 02/28/23 | 5,793,600 | 5,990,266 |
| 2.63%, 02/28/23 | 5,500,000 | 5,841,387 |
| 0.50%, 03/15/23 | 7,300,000 | 7,367,297 |
| 1.50%, 03/31/23 | 5,100,000 | 5,279,098 |
| 2.50%, 03/31/23 | 5,500,000 | 5,834,727 |
| 0.25%, 04/15/23 | 8,000,000 | 8,023,438 |
| 1.63%, 04/30/23 | 5,260,800 | 5,468,561 |
| 2.75%, 04/30/23 | 5,200,000 | 5,560,953 |
| 0.13%, 05/15/23 | 8,200,000 | 8,196,797 |
| 1.75%, 05/15/23 | 9,184,400 | 9,583,706 |
| 1.63%, 05/31/23 | 4,329,900 | 4,506,140 |
| 2.75%, 05/31/23 | 5,600,000 | 6,000,531 |
| 0.25%, 06/15/23 | 7,200,000 | 7,221,375 |
| 1.38%, 06/30/23 | 4,913,000 | 5,083,995 |
| 2.63%, 06/30/23 | 5,500,000 | 5,885,430 |
| 0.13%, 07/15/23 | 8,500,000 | 8,495,352 |
| 1.25%, 07/31/23 | 6,500,000 | 6,708,711 |
| 2.75%, 07/31/23 | 4,800,000 | 5,163,375 |
| 0.13%, 08/15/23 | 4,400,000 | 4,397,078 |
| 2.50%, 08/15/23 | 8,402,200 | 8,985,431 |
| 1.38%, 08/31/23 | 6,500,000 | 6,738,418 |
| 2.75%, 08/31/23 | 4,800,000 | 5,173,313 |
| 1.38%, 09/30/23 | 5,074,500 | 5,265,388 |
| 2.88%, 09/30/23 | 3,700,000 | 4,009,152 |
| 1.63%, 10/31/23 | 2,650,000 | 2,772,770 |
| 2.88%, 10/31/23 | 5,600,000 | 6,080,156 |
| 2.75%, 11/15/23 (d) | 10,038,200 | 10,868,704 |
| 2.13%, 11/30/23 | 3,700,000 | 3,935,297 |
| 2.88%, 11/30/23 | 5,200,000 | 5,656,422 |
| 2.25%, 12/31/23 | 7,075,200 | 7,564,937 |
| 2.63%, 12/31/23 | 5,750,000 | 6,219,209 |
| 2.25%, 01/31/24 (d) | 4,324,500 | 4,630,594 |
| 2.50%, 01/31/24 | 7,000,000 | 7,554,805 |
| 2.75%, 02/15/24 (d) | 8,450,000 | 9,200,928 |
| 2.13%, 02/29/24 | 5,464,100 | 5,835,488 |
| 2.38%, 02/29/24 | 5,000,000 | 5,383,008 |
| 2.13%, 03/31/24 | 11,254,400 | 12,034,734 |
| 2.00%, 04/30/24 | 6,700,000 | 7,144,398 |
| 2.25%, 04/30/24 | 8,750,000 | 9,408,984 |
| 2.50%, 05/15/24 | 10,757,600 | 11,677,039 |
| 2.00%, 05/31/24 | 9,100,000 | 9,713,895 |
| 1.75%, 06/30/24 | 7,100,000 | 7,520,176 |
| 2.00%, 06/30/24 | 4,750,000 | 5,077,305 |
| 1.75%, 07/31/24 | 7,600,000 | 8,058,078 |
| 2.13%, 07/31/24 | 5,000,000 | 5,375,195 |
| 2.38%, 08/15/24 | 11,226,900 | 12,188,203 |
| 1.25%, 08/31/24 | 6,100,000 | 6,353,055 |
| 1.88%, 08/31/24 | 5,165,000 | 5,508,190 |
| 1.50%, 09/30/24 | 6,500,000 | 6,839,980 |
| 2.13%, 09/30/24 | 4,750,000 | 5,118,867 |
| 1.50%, 10/31/24 | 7,300,000 | 7,688,098 |
| 2.25%, 10/31/24 | 5,000,000 | 5,421,289 |
| 2.25%, 11/15/24 | 11,426,900 | 12,399,079 |
| 1.50%, 11/30/24 | 7,710,000 | 8,126,521 |
| 2.13%, 11/30/24 | 5,500,000 | 5,942,148 |
| 1.75%, 12/31/24 | 5,700,000 | 6,074,285 |
| 2.25%, 12/31/24 | 4,600,000 | 5,000,344 |
| 1.38%, 01/31/25 | 7,100,000 | 7,455,832 |
| 2.50%, 01/31/25 | 4,500,000 | 4,947,891 |
| 2.00%, 02/15/25 | 10,298,900 | 11,104,306 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 1.13%, 02/28/25 | 4,150,000 | 4,316,000 |
| 2.75%, 02/28/25 | 5,250,000 | 5,839,600 |
| 0.50%, 03/31/25 | 7,100,000 | 7,183,758 |
| 2.63%, 03/31/25 | 5,600,000 | 6,207,250 |
| 0.38%, 04/30/25 | 8,000,000 | 8,046,875 |
| 2.88%, 04/30/25 | 5,300,000 | 5,945,316 |
| 2.13%, 05/15/25 | 9,921,600 | 10,790,903 |
| 0.25%, 05/31/25 | 6,100,000 | 6,100,000 |
| 2.88%, 05/31/25 | 4,600,000 | 5,169,609 |
| 0.25%, 06/30/25 | 6,900,000 | 6,897,574 |
| 2.75%, 06/30/25 | 4,350,000 | 4,869,791 |
| 0.25%, 07/31/25 | 11,600,000 | 11,592,297 |
| 2.88%, 07/31/25 | 4,500,000 | 5,072,871 |
| 2.00%, 08/15/25 | 11,607,400 | 12,592,669 |
| 0.25%, 08/31/25 | 14,000,000 | 13,990,703 |
| 2.75%, 08/31/25 | 4,400,000 | 4,940,719 |
| 3.00%, 09/30/25 | 4,900,000 | 5,572,219 |
| 3.00%, 10/31/25 | 5,100,000 | 5,808,023 |
| 2.25%, 11/15/25 | 12,280,200 | 13,520,692 |
| 2.88%, 11/30/25 | 4,600,000 | 5,217,406 |
| 2.63%, 12/31/25 | 4,400,000 | 4,939,344 |
| 2.63%, 01/31/26 | 4,400,000 | 4,945,531 |
| 1.63%, 02/15/26 | 10,545,800 | 11,286,890 |
| 2.50%, 02/28/26 | 6,000,000 | 6,712,969 |
| 2.25%, 03/31/26 | 4,000,000 | 4,424,063 |
| 2.38%, 04/30/26 | 4,200,000 | 4,679,227 |
| 1.63%, 05/15/26 | 10,924,500 | 11,711,405 |
| 2.13%, 05/31/26 | 4,700,000 | 5,173,855 |
| 1.88%, 06/30/26 | 5,250,000 | 5,709,170 |
| 1.88%, 07/31/26 | 5,500,000 | 5,984,902 |
| 1.50%, 08/15/26 | 11,571,600 | 12,334,602 |
| 1.38%, 08/31/26 | 4,600,000 | 4,870,789 |
| 1.63%, 09/30/26 | 5,000,000 | 5,371,289 |
| 1.63%, 10/31/26 | 4,800,000 | 5,158,500 |
| 2.00%, 11/15/26 | 10,473,900 | 11,498,378 |
| 1.63%, 11/30/26 | 4,900,000 | 5,268,266 |
| 1.75%, 12/31/26 | 4,300,000 | 4,658,949 |
| 1.50%, 01/31/27 | 4,700,000 | 5,020,922 |
| 2.25%, 02/15/27 | 10,142,600 | 11,320,885 |
| 1.13%, 02/28/27 | 3,000,000 | 3,133,242 |
| 0.63%, 03/31/27 | 5,350,000 | 5,413,113 |
| 0.50%, 04/30/27 | 6,600,000 | 6,621,141 |
| 2.38%, 05/15/27 | 10,300,000 | 11,610,031 |
| 0.50%, 05/31/27 | 7,300,000 | 7,319,391 |
| 0.50%, 06/30/27 | 7,200,000 | 7,216,313 |
| 2.25%, 08/15/27 | 10,942,000 | 12,273,847 |
| 2.25%, 11/15/27 | 9,500,000 | 10,683,789 |
| 2.75%, 02/15/28 | 11,850,000 | 13,788,586 |
| 2.88%, 05/15/28 | 11,650,000 | 13,708,773 |
| 2.88%, 08/15/28 | 12,950,000 | 15,291,117 |
| 3.13%, 11/15/28 | 12,650,000 | 15,241,273 |
| 2.63%, 02/15/29 | 12,100,000 | 14,128,641 |
| 2.38%, 05/15/29 | 10,750,000 | 12,362,500 |
| 1.63%, 08/15/29 (d) | 9,400,000 | 10,222,500 |
| 1.75%, 11/15/29 | 7,500,000 | 8,250,586 |
| 1.50%, 02/15/30 | 7,500,000 | 8,083,008 |
| 0.63%, 05/15/30 (d) | 5,205,000 | 5,178,568 |
| Total Treasuries |
| (Cost $1,628,458,035) | | 1,743,120,307 |
|
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Government Related 5.9% of net assets |
| |
| Agency 2.5% |
| Foreign 0.9% |
| Austria 0.0% |
| Oesterreichische Kontrollbank AG |
| 2.38%, 10/01/21 | 450,000 | 460,271 |
| 2.63%, 01/31/22 | 250,000 | 258,355 |
| 1.63%, 09/17/22 | 200,000 | 205,616 |
| 2.88%, 03/13/23 | 250,000 | 266,299 |
| 1.50%, 02/12/25 | 350,000 | 366,639 |
| | | 1,557,180 |
| British Virgin Islands 0.0% |
| CNOOC Finance 2013 Ltd. |
| 3.00%, 05/09/23 | 400,000 | 421,058 |
| 2.88%, 09/30/29 (a) | 200,000 | 216,349 |
| 3.30%, 09/30/49 (a) | 200,000 | 220,238 |
| | | 857,645 |
| Canada 0.1% |
| CNOOC Finance 2014 ULC |
| 4.25%, 04/30/24 | 250,000 | 277,566 |
| CNOOC Petroleum North America ULC |
| 5.88%, 03/10/35 | 195,000 | 281,954 |
| 6.40%, 05/15/37 | 150,000 | 221,219 |
| 7.50%, 07/30/39 | 100,000 | 168,742 |
| Export Development Canada |
| 1.38%, 10/21/21 | 250,000 | 253,206 |
| 2.00%, 05/17/22 | 150,000 | 154,544 |
| 1.75%, 07/18/22 | 400,000 | 411,344 |
| 2.50%, 01/24/23 | 150,000 | 158,115 |
| 1.38%, 02/24/23 | 350,000 | 359,774 |
| 2.75%, 03/15/23 | 200,000 | 212,497 |
| 2.63%, 02/21/24 | 250,000 | 270,291 |
| | | 2,769,252 |
| China 0.0% |
| Industrial & Commercial Bank of China Ltd. |
| 2.45%, 10/20/21 | 250,000 | 254,169 |
| Colombia 0.0% |
| Ecopetrol S.A. |
| 5.88%, 09/18/23 | 246,000 | 272,530 |
| 4.13%, 01/16/25 | 250,000 | 265,026 |
| 5.38%, 06/26/26 (a) | 250,000 | 277,521 |
| 6.88%, 04/29/30 (a) | 350,000 | 422,733 |
| 7.38%, 09/18/43 | 75,000 | 97,780 |
| 5.88%, 05/28/45 | 450,000 | 512,638 |
| | | 1,848,228 |
| Germany 0.4% |
| FMS Wertmanagement |
| 1.38%, 06/08/21 (i) | 350,000 | 353,187 |
| 2.00%, 08/01/22 (i) | 450,000 | 465,282 |
| 2.75%, 03/06/23 (i) | 200,000 | 212,644 |
| Kreditanstalt Fuer Wiederaufbau |
| 1.50%, 06/15/21 (i) | 1,133,000 | 1,144,562 |
| 2.38%, 08/25/21 (i) | 374,000 | 381,903 |
| 1.75%, 09/15/21 (i) | 150,000 | 152,392 |
| 2.00%, 11/30/21 (i) | 450,000 | 459,972 |
| 3.13%, 12/15/21 (i) | 650,000 | 674,300 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 2.63%, 01/25/22 (i) | 500,000 | 516,860 |
| 2.50%, 02/15/22 (i) | 775,000 | 800,738 |
| 2.13%, 03/07/22 (i) | 500,000 | 514,592 |
| 2.13%, 06/15/22 (i) | 650,000 | 672,178 |
| 1.75%, 08/22/22 (i) | 200,000 | 206,084 |
| 2.00%, 09/29/22 (i) | 1,000,000 | 1,037,155 |
| 2.00%, 10/04/22 (i) | 100,000 | 103,727 |
| 2.38%, 12/29/22 (i) | 650,000 | 682,536 |
| 2.13%, 01/17/23 (i) | 1,250,000 | 1,306,475 |
| 1.63%, 02/15/23 (i) | 750,000 | 775,717 |
| 2.63%, 02/28/24 (i) | 950,000 | 1,028,156 |
| 1.38%, 08/05/24 (i) | 550,000 | 573,323 |
| 2.50%, 11/20/24 (i) | 1,030,000 | 1,124,132 |
| 2.00%, 05/02/25 (i) | 450,000 | 484,328 |
| 0.38%, 07/18/25 (i) | 1,250,000 | 1,250,431 |
| 2.88%, 04/03/28 (i) | 750,000 | 875,486 |
| 1.75%, 09/14/29 (i) | 400,000 | 434,104 |
| 0.00%, 06/29/37 (i)(j) | 250,000 | 202,784 |
| Landwirtschaftliche Rentenbank |
| 1.75%, 09/24/21 (i) | 150,000 | 152,441 |
| 2.25%, 10/01/21 (i) | 250,000 | 255,468 |
| 2.00%, 12/06/21 (i) | 250,000 | 255,538 |
| 2.00%, 01/13/25 (i) | 300,000 | 321,004 |
| 0.50%, 05/27/25 (i) | 300,000 | 301,399 |
| 2.38%, 06/10/25 (i) | 750,000 | 819,015 |
| 1.75%, 07/27/26 (i) | 250,000 | 267,816 |
| 0.88%, 09/03/30 (f)(i) | 500,000 | 499,450 |
| | | 19,305,179 |
| Japan 0.1% |
| Japan Bank for International Cooperation |
| 3.13%, 07/20/21 | 250,000 | 256,161 |
| 1.50%, 07/21/21 | 500,000 | 505,128 |
| 2.50%, 06/01/22 | 200,000 | 207,424 |
| 2.38%, 11/16/22 | 250,000 | 260,845 |
| 1.75%, 01/23/23 | 350,000 | 361,384 |
| 0.63%, 05/22/23 | 600,000 | 603,549 |
| 3.25%, 07/20/23 | 400,000 | 432,264 |
| 3.38%, 10/31/23 | 500,000 | 545,732 |
| 2.50%, 05/23/24 | 750,000 | 806,032 |
| 3.00%, 05/29/24 | 200,000 | 218,580 |
| 1.75%, 10/17/24 | 200,000 | 210,009 |
| 2.50%, 05/28/25 | 250,000 | 272,465 |
| 2.75%, 01/21/26 | 200,000 | 222,321 |
| 1.88%, 07/21/26 | 200,000 | 213,544 |
| 2.25%, 11/04/26 | 300,000 | 327,177 |
| 2.88%, 06/01/27 | 200,000 | 226,820 |
| 2.88%, 07/21/27 | 200,000 | 227,008 |
| 2.75%, 11/16/27 | 200,000 | 226,274 |
| 3.25%, 07/20/28 | 200,000 | 235,757 |
| 3.50%, 10/31/28 | 200,000 | 241,247 |
| 2.00%, 10/17/29 | 200,000 | 217,008 |
| Japan International Cooperation Agency |
| 2.13%, 10/20/26 | 200,000 | 215,926 |
| 2.75%, 04/27/27 | 200,000 | 224,144 |
| 1.00%, 07/22/30 | 380,000 | 378,560 |
| | | 7,635,359 |
| Netherlands 0.0% |
| Syngenta Finance N.V. |
| 3.13%, 03/28/22 | 100,000 | 102,021 |
| Norway 0.1% |
| Equinor A.S.A. |
| 2.75%, 11/10/21 | 150,000 | 154,321 |
| 3.15%, 01/23/22 | 200,000 | 207,804 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 2.45%, 01/17/23 | 100,000 | 104,844 |
| 2.65%, 01/15/24 | 150,000 | 160,593 |
| 3.70%, 03/01/24 | 393,000 | 437,763 |
| 2.88%, 04/06/25 (a) | 100,000 | 109,673 |
| 3.00%, 04/06/27 (a) | 200,000 | 222,500 |
| 3.63%, 09/10/28 (a) | 150,000 | 176,299 |
| 3.13%, 04/06/30 (a) | 250,000 | 281,835 |
| 3.63%, 04/06/40 (a) | 100,000 | 115,838 |
| 5.10%, 08/17/40 | 114,000 | 156,558 |
| 4.25%, 11/23/41 | 100,000 | 122,967 |
| 3.95%, 05/15/43 | 150,000 | 176,473 |
| 4.80%, 11/08/43 | 100,000 | 132,383 |
| 3.25%, 11/18/49 (a) | 150,000 | 162,136 |
| 3.70%, 04/06/50 (a) | 250,000 | 291,116 |
| | | 3,013,103 |
| Republic of Korea 0.1% |
| Export-Import Bank of Korea |
| 2.75%, 01/25/22 | 350,000 | 360,419 |
| 4.00%, 01/14/24 | 500,000 | 552,587 |
| 2.38%, 06/25/24 | 200,000 | 211,593 |
| 2.88%, 01/21/25 | 400,000 | 434,692 |
| 3.25%, 11/10/25 | 750,000 | 840,675 |
| The Korea Development Bank |
| 3.00%, 09/14/22 | 488,000 | 511,422 |
| 2.13%, 10/01/24 | 250,000 | 263,069 |
| 3.00%, 01/13/26 | 200,000 | 221,870 |
| | | 3,396,327 |
| Sweden 0.1% |
| Svensk Exportkredit AB |
| 2.38%, 03/09/22 | 500,000 | 515,568 |
| 1.63%, 11/14/22 | 200,000 | 205,649 |
| 2.88%, 03/14/23 | 750,000 | 797,689 |
| 1.75%, 12/12/23 | 500,000 | 522,620 |
| 0.38%, 07/30/24 | 400,000 | 399,890 |
| 0.63%, 05/14/25 | 275,000 | 276,735 |
| 0.50%, 08/26/25 | 350,000 | 350,000 |
| | | 3,068,151 |
| | | 43,806,614 |
| U.S. 1.6% |
| CNOOC Finance 2015 USA LLC |
| 3.50%, 05/05/25 | 800,000 | 883,984 |
| 4.38%, 05/02/28 | 250,000 | 295,564 |
| Fannie Mae |
| 1.38%, 10/07/21 | 4,000,000 | 4,054,340 |
| 2.00%, 01/05/22 | 100,000 | 102,526 |
| 2.25%, 04/12/22 | 3,500,000 | 3,620,172 |
| 1.38%, 09/06/22 | 500,000 | 512,133 |
| 2.38%, 01/19/23 | 2,100,000 | 2,209,546 |
| 0.25%, 05/22/23 | 3,000,000 | 3,003,405 |
| 2.50%, 02/05/24 | 1,300,000 | 1,400,887 |
| 2.63%, 09/06/24 | 1,830,000 | 2,002,349 |
| 1.63%, 01/07/25 | 3,500,000 | 3,692,937 |
| 2.13%, 04/24/26 | 1,000,000 | 1,093,095 |
| 1.88%, 09/24/26 (d) | 1,000,000 | 1,080,325 |
| 6.03%, 10/08/27 | 164,000 | 223,990 |
| 6.63%, 11/15/30 | 2,180,000 | 3,351,619 |
| 5.63%, 07/15/37 | 500,000 | 803,440 |
| Federal Farm Credit Banks Funding Corp. |
| 1.95%, 11/02/21 | 750,000 | 764,389 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Federal Home Loan Bank |
| 3.00%, 10/12/21 | 2,800,000 | 2,889,334 |
| 1.88%, 11/29/21 | 655,000 | 669,338 |
| 1.63%, 12/20/21 | 3,200,000 | 3,262,720 |
| 0.25%, 06/03/22 | 5,000,000 | 5,009,625 |
| 1.88%, 12/09/22 | 1,640,000 | 1,701,984 |
| 2.50%, 02/13/24 | 1,300,000 | 1,401,621 |
| 1.50%, 08/15/24 | 4,000,000 | 4,198,560 |
| 3.25%, 11/16/28 | 2,850,000 | 3,406,819 |
| 5.50%, 07/15/36 | 330,000 | 515,635 |
| Federal Home Loan Mortgage Corp. |
| 0.13%, 07/25/22 | 1,000,000 | 999,290 |
| Federal National Mortgage Association |
| 0.25%, 07/10/23 | 1,000,000 | 1,000,240 |
| 0.88%, 08/05/30 | 1,000,000 | 984,815 |
| Freddie Mac |
| 2.38%, 01/13/22 | 1,800,000 | 1,855,125 |
| 2.75%, 06/19/23 | 500,000 | 535,290 |
| 0.25%, 06/26/23 | 4,000,000 | 4,001,560 |
| 0.25%, 08/24/23 | 5,000,000 | 5,001,800 |
| 1.50%, 02/12/25 | 4,000,000 | 4,199,020 |
| 6.75%, 03/15/31 | 200,000 | 312,905 |
| 6.25%, 07/15/32 | 1,100,000 | 1,723,667 |
| Tennessee Valley Authority |
| 2.88%, 09/15/24 | 500,000 | 549,425 |
| 4.65%, 06/15/35 | 655,000 | 911,259 |
| 4.63%, 09/15/60 | 150,000 | 230,612 |
| | | 74,455,345 |
| | | 118,261,959 |
| |
| Local Authority 0.9% |
| Foreign 0.3% |
| Canada 0.3% |
| Hydro-Quebec |
| 8.05%, 07/07/24 | 350,000 | 448,954 |
| 8.50%, 12/01/29 | 100,000 | 161,442 |
| Province of Alberta |
| 3.35%, 11/01/23 | 359,000 | 391,366 |
| 2.95%, 01/23/24 | 250,000 | 270,639 |
| 1.88%, 11/13/24 | 350,000 | 369,014 |
| 1.00%, 05/20/25 | 400,000 | 406,642 |
| 3.30%, 03/15/28 | 500,000 | 583,545 |
| 1.35%, 05/28/30 | 250,000 | 257,481 |
| 1.30%, 07/22/30 | 650,000 | 654,644 |
| Province of British Columbia |
| 2.65%, 09/22/21 | 100,000 | 102,535 |
| 2.00%, 10/23/22 | 350,000 | 362,978 |
| 1.75%, 09/27/24 | 400,000 | 421,696 |
| 2.25%, 06/02/26 | 150,000 | 163,976 |
| Province of Manitoba |
| 3.05%, 05/14/24 | 324,000 | 353,533 |
| 2.13%, 06/22/26 | 330,000 | 355,539 |
| Province of New Brunswick |
| 3.63%, 02/24/28 | 150,000 | 177,271 |
| Province of Ontario |
| 2.50%, 09/10/21 | 200,000 | 204,469 |
| 2.40%, 02/08/22 | 250,000 | 257,497 |
| 2.55%, 04/25/22 | 600,000 | 621,933 |
| 2.25%, 05/18/22 | 400,000 | 413,170 |
| 2.45%, 06/29/22 | 200,000 | 207,725 |
| 2.20%, 10/03/22 | 400,000 | 415,348 |
| 1.75%, 01/24/23 | 600,000 | 620,181 |
| 3.40%, 10/17/23 | 450,000 | 491,508 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.05%, 01/29/24 | 500,000 | 543,915 |
| 3.20%, 05/16/24 | 200,000 | 219,858 |
| 2.50%, 04/27/26 | 200,000 | 219,864 |
| 2.30%, 06/15/26 | 200,000 | 217,736 |
| 1.05%, 05/21/27 | 250,000 | 253,242 |
| 2.00%, 10/02/29 | 200,000 | 216,072 |
| Province of Quebec |
| 2.75%, 08/25/21 | 100,000 | 102,390 |
| 2.38%, 01/31/22 | 700,000 | 720,324 |
| 2.63%, 02/13/23 | 250,000 | 263,745 |
| 2.50%, 04/09/24 | 150,000 | 161,135 |
| 2.88%, 10/16/24 | 300,000 | 329,284 |
| 1.50%, 02/11/25 | 350,000 | 364,852 |
| 0.60%, 07/23/25 | 1,200,000 | 1,203,000 |
| 2.50%, 04/20/26 | 250,000 | 275,249 |
| 2.75%, 04/12/27 | 200,000 | 224,842 |
| 7.50%, 09/15/29 | 421,000 | 649,944 |
| | | 14,678,538 |
| U.S. 0.6% |
| American Municipal Power, Inc. |
| RB (Build America Bonds) Series 2010 | | |
| 6.27%, 02/15/50 | 100,000 | 141,345 |
| 8.08%, 02/15/50 | 250,000 | 459,235 |
| Bay Area Toll Authority |
| San Francisco Bay Area Toll Bridge RB (Build America Bonds) Series 2009F2 | | |
| 6.26%, 04/01/49 | 400,000 | 685,972 |
| San Francisco Bay Area Toll Bridge RB (Build America Bonds) Series 2010S3 | | |
| 6.91%, 10/01/50 | 230,000 | 428,837 |
| California |
| GO (Build America Bonds) Series 2009 | | |
| 7.50%, 04/01/34 | 900,000 | 1,490,332 |
| 7.55%, 04/01/39 | 400,000 | 703,910 |
| 7.30%, 10/01/39 | 500,000 | 832,432 |
| 7.35%, 11/01/39 | 200,000 | 334,598 |
| California State University |
| Series 2017B | | |
| 3.90%, 11/01/47 (a) | 50,000 | 58,593 |
| Chicago O'Hare International Airport |
| RB (Build America Bonds) Series 2010 | | |
| 6.40%, 01/01/40 | 100,000 | 152,736 |
| RB Series 2018C | | |
| 4.47%, 01/01/49 | 150,000 | 194,227 |
| Chicago Transit Authority |
| RB Bonds (Pension Funding) Series 2008 | | |
| 6.90%, 12/01/40 | 750,000 | 1,037,778 |
| City of Houston TX |
| GO Bonds (Pension Funding) Series 2017 | | |
| 3.96%, 03/01/47 | 120,000 | 148,054 |
| City of New York |
| GO (Build America Bonds) Series 2010 | | |
| 6.25%, 06/01/35 (a) | 250,000 | 251,312 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| City of San Antonio TX Electric & Gas Systems |
| RB (Build America Bonds) Series 2009 | | |
| 5.99%, 02/01/39 | 190,000 | 275,789 |
| City of San Francisco CA Public Utilities Commission |
| RB Series 2020A | | |
| 3.30%, 11/01/39 (a) | 150,000 | 161,234 |
| Commonwealth of Massachusetts |
| GO (Build America Bonds) Series 2009 | | |
| 5.46%, 12/01/39 | 100,000 | 143,250 |
| GO Series 2019D | | |
| 2.66%, 09/01/39 | 145,000 | 156,047 |
| 2.81%, 09/01/43 | 100,000 | 106,896 |
| GO Series 2019H | | |
| 2.90%, 09/01/49 | 100,000 | 109,035 |
| GO Series 2020C | | |
| 2.51%, 07/01/41 (a) | 100,000 | 101,664 |
| Commonwealth of Massachusetts Transportation Fund |
| RB (Build America Bonds) Series 2010 | | |
| 5.73%, 06/01/40 | 100,000 | 142,555 |
| Commonwealth of Pennsylvania Financing Authority |
| RB Series 2016A | | |
| 4.14%, 06/01/38 | 200,000 | 238,812 |
| Connecticut |
| GO (Teachers' Retirement Fund) Series 2008A | | |
| 5.85%, 03/15/32 | 250,000 | 348,044 |
| County of Clark Department of Aviation |
| RB (Build America Bonds) Series 2010C | | |
| 6.82%, 07/01/45 | 150,000 | 244,249 |
| County of Miami-Dade FL Water & Sewer System |
| RB Series 2019C | | |
| 3.49%, 10/01/42 (a) | 100,000 | 107,146 |
| Dallas Area Rapid Transit |
| RB (Build America Bonds) Series 2009B | | |
| 6.00%, 12/01/44 | 140,000 | 221,225 |
| Dallas County Hospital District |
| GO (Build America Bonds) Series 2009C | | |
| 5.62%, 08/15/44 | 100,000 | 146,894 |
| Dallas/Fort Worth International Airport |
| RB Series 2019A | | |
| 2.99%, 11/01/38 | 100,000 | 105,239 |
| RB Series 2020C | | |
| 3.09%, 11/01/40 (a) | 250,000 | 252,951 |
| 2.92%, 11/01/50 | 250,000 | 248,459 |
| East Bay Municipal Utility District Water System |
| Water System RB (Build America Bonds) Series 2010 | | |
| 5.87%, 06/01/40 | 330,000 | 504,369 |
| Foothill-Eastern Transportation Corridor Agency |
| RB Series 2019A | | |
| 3.92%, 01/15/53 (a) | 100,000 | 105,805 |
| Grand Parkway Transportation Corp. |
| RB Series 2013E | | |
| 5.18%, 10/01/42 | 100,000 | 141,941 |
| Illinois |
| GO Bonds (Pension Funding) Series 2003 | | |
| 5.10%, 06/01/33 | 1,037,000 | 1,051,345 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| GO Bonds (Pension Funding) Series 2010 | | |
| 6.73%, 04/01/35 | 110,000 | 123,031 |
| JobsOhio Beverage System |
| Statewide Senior Lien Liquor Profits RB Series 2013B | | |
| 3.99%, 01/01/29 | 490,000 | 557,623 |
| Los Angeles Department of Water & Power Power System |
| RB (Build America Bonds) Series 2010 | | |
| 6.57%, 07/01/45 | 200,000 | 338,966 |
| Los Angeles Unified School District |
| GO (Build America Bonds) Series 2009 | | |
| 5.75%, 07/01/34 | 250,000 | 346,904 |
| GO (Build America Bonds) Series 2010 | | |
| 6.76%, 07/01/34 | 500,000 | 743,524 |
| Maryland Health & Higher Educational Facilities Authority |
| RB Series 2020D | | |
| 3.05%, 07/01/40 (a) | 150,000 | 154,640 |
| 3.20%, 07/01/50 | 150,000 | 153,977 |
| Massachusetts School Building Authority |
| RB Series 2020B | | |
| 1.75%, 08/15/30 | 500,000 | 509,074 |
| Metropolitan Government Nashville & Davidson County Health & Educational Facs Board |
| RB (Build America Bonds) Series 2016B | | |
| 4.05%, 07/01/26 (a) | 130,000 | 143,097 |
| Metropolitan Transportation Authority |
| RB (Build America Bonds) Series 2009 | | |
| 7.34%, 11/15/39 | 200,000 | 324,580 |
| RB (Build America Bonds) Series 2010E | | |
| 6.81%, 11/15/40 | 330,000 | 425,563 |
| Michigan Finance Authority |
| RB Series 2019T | | |
| 3.38%, 12/01/40 | 200,000 | 224,521 |
| Municipal Electric Authority of Georgia |
| RB (Build America Bonds) Series 2010 | | |
| 6.64%, 04/01/57 | 148,000 | 218,848 |
| RB (Build America Bonds) Series 2010 | | |
| 6.66%, 04/01/57 | 148,000 | 224,984 |
| New Jersey Economic Development Authority |
| RB Bonds (Pension Funding) Series 1997A | | |
| 7.43%, 02/15/29 | 250,000 | 311,645 |
| New Jersey Transportation Trust Fund Authority |
| RB (Build America Bonds) Series 2010C | | |
| 5.75%, 12/15/28 | 330,000 | 367,999 |
| RB Series 2019B | | |
| 4.13%, 06/15/42 | 200,000 | 200,498 |
| New Jersey Turnpike Authority |
| RB (Build America Bonds) Series 2009F | | |
| 7.41%, 01/01/40 | 150,000 | 256,443 |
| RB (Build America Bonds) Series 2010A | | |
| 7.10%, 01/01/41 | 350,000 | 583,047 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| New York City Transitional Finance Authority |
| RB (Build America Bonds) Series 2010 | | |
| 5.57%, 11/01/38 | 200,000 | 290,984 |
| New York City Water & Sewer System |
| RB (Build America Bonds) Series 2010 | | |
| 5.72%, 06/15/42 | 125,000 | 195,250 |
| New York City Water & Sewer System |
| Water System RB (Build America Bonds) Series 2010 | | |
| 6.01%, 06/15/42 | 250,000 | 401,030 |
| New York State Dormitory Authority |
| RB (Build America Bonds) Series 2010 | | |
| 5.60%, 03/15/40 | 50,000 | 71,178 |
| RB Series 2009F | | |
| 5.63%, 03/15/39 | 100,000 | 134,155 |
| RB Series 2019B | | |
| 3.14%, 07/01/43 | 100,000 | 104,086 |
| New York State Urban Development Corp. |
| RB (Build America Bonds) Series 2009 | | |
| 5.77%, 03/15/39 | 100,000 | 127,448 |
| North Texas Tollway Authority |
| RB (Build America Bonds) Series 2009 | | |
| 6.72%, 01/01/49 | 150,000 | 263,343 |
| Oregon |
| GO Bonds (Pension Funding) Series 2003 | | |
| 5.89%, 06/01/27 | 430,000 | 542,881 |
| Oregon School Boards Association |
| GO Bonds (Pension Funding) Series 2002B | | |
| 5.55%, 06/30/28 | 200,000 | 241,277 |
| Port Authority of New York & New Jersey |
| Consolidated Bonds 164th Series | | |
| 5.65%, 11/01/40 | 150,000 | 215,322 |
| Consolidated Bonds 165th Series | | |
| 5.65%, 11/01/40 | 100,000 | 144,467 |
| Consolidated Bonds 168th Series | | |
| 4.93%, 10/01/51 | 200,000 | 274,890 |
| Consolidated Bonds 181th Series | | |
| 4.96%, 08/01/46 | 100,000 | 135,503 |
| Consolidated Bonds 192th Series | | |
| 4.81%, 10/15/65 | 170,000 | 232,931 |
| Consolidated Bonds AAA Series | | |
| 1.09%, 07/01/23 | 400,000 | 405,502 |
| RB (Build America Bonds) Series 2012 | | |
| 4.46%, 10/01/62 | 450,000 | 589,678 |
| Regional Transportation District Sales Tax Revenue |
| RB (Build America Bonds) Series 2010B | | |
| 5.84%, 11/01/50 | 50,000 | 82,572 |
| Rutgers The State University of New Jersey |
| GO Series 2019P | | |
| 3.92%, 05/01/19 (a) | 100,000 | 122,802 |
| Sales Tax Securitization Corp. |
| RB Series 2018B | | |
| 3.82%, 01/01/48 | 150,000 | 161,311 |
| San Diego County Regional Transportation Commission |
| RB Series 2019A | | |
| 3.25%, 04/01/48 (a) | 150,000 | 159,971 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| San Jose Redevelopment Agency Successor Agency |
| Tax Allocation Series 2017A-T | | |
| 3.38%, 08/01/34 (a) | 100,000 | 108,914 |
| Santa Clara Valley Transportation Authority |
| RB (Build America Bonds) Series 2010 | | |
| 5.88%, 04/01/32 | 100,000 | 127,604 |
| State of California |
| GO Bonds | | |
| 7.60%, 11/01/40 | 300,000 | 548,382 |
| State of Illinois |
| GO (Build America Bonds) Series 2010 | | |
| 7.35%, 07/01/35 | 100,000 | 115,578 |
| Texas |
| GO (Build America Bonds) Series 2009A | | |
| 5.52%, 04/01/39 | 580,000 | 856,055 |
| Texas Private Activity Bond Surface Transportation Corp. |
| RB Series 2019B | | |
| 3.92%, 12/31/49 | 150,000 | 164,656 |
| Texas Transportation Commission |
| GO Bonds Series 2020 | | |
| 2.47%, 10/01/44 (a) | 400,000 | 404,972 |
| The Ohio State University |
| RB (Build America Bonds) Series 2010 | | |
| 4.91%, 06/01/40 | 300,000 | 423,855 |
| RB Series 2016A | | |
| 3.80%, 12/01/46 | 100,000 | 126,431 |
| University of California |
| RB (Build America Bonds) Series 2009 | | |
| 5.77%, 05/15/43 | 500,000 | 729,775 |
| RB Series 2012AD | | |
| 4.86%, 05/15/12 | 100,000 | 144,408 |
| RB Series 2015AQ | | |
| 4.77%, 05/15/15 | 150,000 | 211,181 |
| RB Series 2020BG | | |
| 1.32%, 05/15/27 (a) | 195,000 | 198,126 |
| 1.61%, 05/15/30 (a) | 250,000 | 252,676 |
| University of Pittsburgh-of the Commonwealth System of Higher Education |
| GO Bonds Series 2019A | | |
| 3.56%, 09/15/19 (a) | 100,000 | 120,550 |
| University of Virginia |
| RB Series 2017C | | |
| 4.18%, 09/01/17 (a) | 100,000 | 131,608 |
| RB Series 2020 | | |
| 2.26%, 09/01/50 (a) | 400,000 | 391,034 |
| Westchester Cnty Ny Local Dev Wstdev |
| RB Series 2020 | | |
| 3.85%, 11/01/50 (a)(f) | 250,000 | 253,230 |
| | | 28,246,890 |
| | | 42,925,428 |
| |
| Sovereign 1.1% |
| Canada 0.0% |
| Canada Government International Bond |
| 2.63%, 01/25/22 | 550,000 | 568,645 |
| 2.00%, 11/15/22 | 300,000 | 311,802 |
| 1.63%, 01/22/25 | 650,000 | 685,912 |
| | | 1,566,359 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Chile 0.1% |
| Chile Government International Bond |
| 3.13%, 01/21/26 | 200,000 | 222,033 |
| 3.24%, 02/06/28 (a) | 450,000 | 503,716 |
| 2.45%, 01/31/31 (a) | 300,000 | 317,697 |
| 2.55%, 01/27/32 (a) | 400,000 | 424,752 |
| 3.63%, 10/30/42 | 150,000 | 178,058 |
| 3.86%, 06/21/47 | 200,000 | 247,937 |
| 3.50%, 01/25/50 (a) | 200,000 | 236,300 |
| | | 2,130,493 |
| Colombia 0.1% |
| Colombia Government International Bond |
| 4.38%, 07/12/21 | 200,000 | 205,946 |
| 2.63%, 03/15/23 (a) | 200,000 | 205,571 |
| 4.00%, 02/26/24 (a) | 300,000 | 321,431 |
| 8.13%, 05/21/24 | 250,000 | 304,491 |
| 4.50%, 01/28/26 (a) | 300,000 | 334,075 |
| 3.88%, 04/25/27 (a) | 300,000 | 327,261 |
| 4.50%, 03/15/29 (a) | 550,000 | 622,553 |
| 3.00%, 01/30/30 (a) | 500,000 | 515,050 |
| 3.13%, 04/15/31 (a) | 200,000 | 207,730 |
| 7.38%, 09/18/37 | 362,000 | 521,208 |
| 6.13%, 01/18/41 | 350,000 | 461,984 |
| 5.63%, 02/26/44 (a) | 450,000 | 574,920 |
| 5.00%, 06/15/45 (a) | 700,000 | 842,821 |
| 5.20%, 05/15/49 (a) | 200,000 | 249,788 |
| | | 5,694,829 |
| Hungary 0.0% |
| Hungary Government International Bond |
| 5.38%, 02/21/23 | 500,000 | 553,287 |
| 5.75%, 11/22/23 | 300,000 | 345,356 |
| 5.38%, 03/25/24 | 300,000 | 345,999 |
| 7.63%, 03/29/41 | 150,000 | 268,163 |
| | | 1,512,805 |
| Indonesia 0.1% |
| Indonesia Government International Bond |
| 2.95%, 01/11/23 | 150,000 | 156,515 |
| 3.50%, 01/11/28 | 200,000 | 220,669 |
| 4.10%, 04/24/28 | 250,000 | 286,374 |
| 4.75%, 02/11/29 | 200,000 | 240,525 |
| 3.40%, 09/18/29 | 200,000 | 220,913 |
| 2.85%, 02/14/30 | 200,000 | 211,806 |
| 3.85%, 10/15/30 | 300,000 | 344,950 |
| 4.35%, 01/11/48 | 400,000 | 478,334 |
| 5.35%, 02/11/49 | 200,000 | 271,986 |
| 3.70%, 10/30/49 | 300,000 | 328,622 |
| 3.50%, 02/14/50 | 200,000 | 213,760 |
| 4.45%, 04/15/70 | 200,000 | 248,913 |
| | | 3,223,367 |
| Israel 0.1% |
| Israel Government International Bond |
| 4.00%, 06/30/22 | 200,000 | 212,636 |
| 2.88%, 03/16/26 | 200,000 | 220,492 |
| 3.25%, 01/17/28 | 200,000 | 228,774 |
| 2.75%, 07/03/30 | 350,000 | 385,774 |
| 4.50%, 01/30/43 | 200,000 | 262,278 |
| 4.13%, 01/17/48 | 200,000 | 254,181 |
| 3.88%, 07/03/50 | 300,000 | 360,390 |
| 4.50%, 04/03/20 | 200,000 | 279,606 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| State of Israel |
| 2.50%, 01/15/30 | 200,000 | 216,207 |
| 3.38%, 01/15/50 | 350,000 | 387,665 |
| | | 2,808,003 |
| Italy 0.1% |
| Republic of Italy Government International Bond |
| 6.88%, 09/27/23 | 514,000 | 600,059 |
| 2.38%, 10/17/24 | 550,000 | 570,474 |
| 2.88%, 10/17/29 | 675,000 | 695,412 |
| 5.38%, 06/15/33 | 250,000 | 315,523 |
| 4.00%, 10/17/49 | 350,000 | 367,769 |
| | | 2,549,237 |
| Mexico 0.2% |
| Mexico Government International Bond |
| 3.63%, 03/15/22 | 200,000 | 209,940 |
| 4.00%, 10/02/23 | 550,000 | 600,551 |
| 3.60%, 01/30/25 | 450,000 | 490,390 |
| 3.90%, 04/27/25 (a) | 200,000 | 220,710 |
| 4.13%, 01/21/26 | 288,000 | 321,136 |
| 4.15%, 03/28/27 | 500,000 | 557,740 |
| 3.75%, 01/11/28 | 400,000 | 433,872 |
| 4.50%, 04/22/29 | 600,000 | 678,072 |
| 3.25%, 04/16/30 (a) | 900,000 | 931,923 |
| 8.30%, 08/15/31 | 150,000 | 222,090 |
| 4.75%, 04/27/32 (a) | 500,000 | 575,355 |
| 6.75%, 09/27/34 | 362,000 | 497,531 |
| 6.05%, 01/11/40 | 424,000 | 548,573 |
| 4.75%, 03/08/44 | 950,000 | 1,074,274 |
| 5.55%, 01/21/45 | 400,000 | 499,960 |
| 4.60%, 01/23/46 | 450,000 | 500,436 |
| 4.35%, 01/15/47 | 300,000 | 322,799 |
| 4.60%, 02/10/48 | 400,000 | 441,368 |
| 4.50%, 01/31/50 (a) | 475,000 | 522,115 |
| 5.00%, 04/27/51 (a) | 450,000 | 521,741 |
| 5.75%, 10/12/10 | 420,000 | 515,825 |
| | | 10,686,401 |
| Panama 0.1% |
| Panama Government International Bond |
| 4.00%, 09/22/24 (a) | 200,000 | 220,752 |
| 3.75%, 03/16/25 (a) | 300,000 | 330,285 |
| 8.88%, 09/30/27 | 250,000 | 361,155 |
| 3.88%, 03/17/28 (a) | 600,000 | 686,802 |
| 9.38%, 04/01/29 | 100,000 | 155,805 |
| 3.16%, 01/23/30 (a) | 200,000 | 219,064 |
| 6.70%, 01/26/36 | 131,000 | 195,116 |
| 4.50%, 05/15/47 | 250,000 | 323,327 |
| 4.50%, 04/16/50 (a) | 400,000 | 518,562 |
| 4.30%, 04/29/53 | 200,000 | 254,630 |
| 4.50%, 04/01/56 (a) | 350,000 | 454,701 |
| 3.87%, 07/23/60 (a) | 200,000 | 238,759 |
| | | 3,958,958 |
| Peru 0.1% |
| Peruvian Government International Bond |
| 7.35%, 07/21/25 | 250,000 | 321,919 |
| 2.39%, 01/23/26 (a) | 200,000 | 210,719 |
| 4.13%, 08/25/27 | 150,000 | 175,421 |
| 2.84%, 06/20/30 | 150,000 | 165,133 |
| 2.78%, 01/23/31 (a) | 200,000 | 218,373 |
| 8.75%, 11/21/33 | 450,000 | 767,990 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 6.55%, 03/14/37 | 300,000 | 468,444 |
| 5.63%, 11/18/50 | 395,000 | 656,553 |
| | | 2,984,552 |
| Philippines 0.1% |
| Philippine Government International Bond |
| 4.20%, 01/21/24 | 200,000 | 222,202 |
| 10.63%, 03/16/25 | 300,000 | 427,928 |
| 5.50%, 03/30/26 | 200,000 | 246,423 |
| 3.00%, 02/01/28 | 400,000 | 437,496 |
| 3.75%, 01/14/29 | 400,000 | 462,764 |
| 9.50%, 02/02/30 | 250,000 | 412,271 |
| 2.46%, 05/05/30 | 200,000 | 214,305 |
| 7.75%, 01/14/31 | 350,000 | 534,754 |
| 6.38%, 01/15/32 | 300,000 | 424,839 |
| 6.38%, 10/23/34 | 300,000 | 440,412 |
| 3.95%, 01/20/40 | 600,000 | 711,936 |
| 3.70%, 03/01/41 | 400,000 | 465,426 |
| 3.70%, 02/02/42 | 400,000 | 466,976 |
| 2.95%, 05/05/45 | 200,000 | 213,607 |
| | | 5,681,339 |
| Poland 0.0% |
| Republic of Poland Government International Bond |
| 5.00%, 03/23/22 | 500,000 | 536,730 |
| 3.00%, 03/17/23 | 400,000 | 425,734 |
| 4.00%, 01/22/24 | 300,000 | 335,368 |
| 3.25%, 04/06/26 | 250,000 | 283,230 |
| | | 1,581,062 |
| Republic of Korea 0.0% |
| Korea International Bond |
| 3.88%, 09/11/23 | 200,000 | 219,919 |
| 5.63%, 11/03/25 | 100,000 | 124,714 |
| 2.75%, 01/19/27 | 250,000 | 274,314 |
| 2.50%, 06/19/29 | 200,000 | 221,862 |
| 4.13%, 06/10/44 | 200,000 | 276,589 |
| | | 1,117,398 |
| Uruguay 0.1% |
| Uruguay Government International Bond |
| 8.00%, 11/18/22 | 150,000 | 163,244 |
| 4.50%, 08/14/24 | 113,000 | 124,715 |
| 4.38%, 10/27/27 | 250,000 | 291,155 |
| 4.38%, 01/23/31 (a) | 350,000 | 421,206 |
| 7.63%, 03/21/36 | 150,000 | 237,566 |
| 4.13%, 11/20/45 | 150,000 | 182,711 |
| 5.10%, 06/18/50 | 750,000 | 1,043,381 |
| 4.98%, 04/20/55 | 450,000 | 623,335 |
| | | 3,087,313 |
| | | 48,582,116 |
| |
| Supranational* 1.4% |
| African Development Bank |
| 1.63%, 09/16/22 | 500,000 | 514,215 |
| 2.13%, 11/16/22 | 800,000 | 833,128 |
| 0.75%, 04/03/23 | 500,000 | 506,610 |
| 3.00%, 09/20/23 | 250,000 | 270,849 |
| Asian Development Bank |
| 1.75%, 06/08/21 | 350,000 | 354,142 |
| 2.00%, 02/16/22 | 600,000 | 615,543 |
| 1.88%, 02/18/22 | 250,000 | 256,025 |
| 0.63%, 04/07/22 | 750,000 | 754,864 |
| 1.88%, 07/19/22 | 650,000 | 670,195 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 1.88%, 08/10/22 | 600,000 | 619,203 |
| 1.75%, 09/13/22 | 500,000 | 515,465 |
| 1.63%, 01/24/23 | 450,000 | 464,990 |
| 2.75%, 03/17/23 | 600,000 | 638,211 |
| 0.25%, 07/14/23 | 750,000 | 750,360 |
| 2.63%, 01/30/24 | 450,000 | 485,852 |
| 1.50%, 10/18/24 | 400,000 | 419,582 |
| 2.00%, 01/22/25 | 851,000 | 911,378 |
| 0.63%, 04/29/25 | 400,000 | 404,312 |
| 0.38%, 09/03/25 (f) | 1,000,000 | 997,715 |
| 2.00%, 04/24/26 | 500,000 | 542,312 |
| 2.63%, 01/12/27 | 500,000 | 563,005 |
| 2.50%, 11/02/27 | 500,000 | 564,272 |
| 2.75%, 01/19/28 | 200,000 | 229,959 |
| 5.82%, 06/16/28 | 250,000 | 344,034 |
| 1.75%, 09/19/29 | 250,000 | 270,046 |
| 1.88%, 01/24/30 | 400,000 | 437,590 |
| Corp. Andina de Fomento |
| 2.13%, 09/27/21 | 150,000 | 152,135 |
| 4.38%, 06/15/22 | 362,000 | 383,141 |
| 2.75%, 01/06/23 | 250,000 | 259,815 |
| 2.38%, 05/12/23 | 350,000 | 362,010 |
| Council of Europe Development Bank |
| 1.75%, 09/26/22 | 350,000 | 360,976 |
| 2.63%, 02/13/23 | 250,000 | 264,464 |
| 0.25%, 06/10/23 | 150,000 | 150,035 |
| 1.38%, 02/27/25 | 150,000 | 156,572 |
| European Bank for Reconstruction & Development |
| 1.50%, 11/02/21 | 200,000 | 202,949 |
| 2.13%, 03/07/22 | 500,000 | 514,302 |
| 2.75%, 03/07/23 | 350,000 | 372,005 |
| 0.25%, 07/10/23 | 250,000 | 250,064 |
| 1.63%, 09/27/24 | 250,000 | 262,881 |
| 0.50%, 05/19/25 | 350,000 | 351,883 |
| European Investment Bank |
| 1.63%, 06/15/21 | 700,000 | 707,829 |
| 1.38%, 09/15/21 | 400,000 | 404,798 |
| 2.13%, 10/15/21 | 450,000 | 459,648 |
| 2.88%, 12/15/21 | 475,000 | 491,312 |
| 2.25%, 03/15/22 | 500,000 | 515,767 |
| 2.63%, 05/20/22 | 650,000 | 676,939 |
| 2.38%, 06/15/22 | 600,000 | 623,265 |
| 2.25%, 08/15/22 | 750,000 | 779,850 |
| 1.38%, 09/06/22 | 400,000 | 409,436 |
| 2.00%, 12/15/22 | 250,000 | 260,248 |
| 2.50%, 03/15/23 | 850,000 | 899,194 |
| 1.38%, 05/15/23 | 500,000 | 515,702 |
| 2.88%, 08/15/23 | 650,000 | 700,765 |
| 0.25%, 09/15/23 | 250,000 | 250,148 |
| 3.13%, 12/14/23 | 250,000 | 273,549 |
| 3.25%, 01/29/24 | 1,000,000 | 1,101,645 |
| 2.63%, 03/15/24 | 500,000 | 541,395 |
| 2.25%, 06/24/24 | 500,000 | 537,335 |
| 2.50%, 10/15/24 | 400,000 | 436,006 |
| 1.88%, 02/10/25 | 450,000 | 480,179 |
| 1.63%, 03/14/25 | 700,000 | 739,921 |
| 0.63%, 07/25/25 | 500,000 | 506,013 |
| 2.13%, 04/13/26 | 500,000 | 546,622 |
| 2.38%, 05/24/27 | 450,000 | 502,990 |
| 1.63%, 10/09/29 | 350,000 | 375,428 |
| 0.88%, 05/17/30 | 170,000 | 170,944 |
| Inter-American Development Bank |
| 1.25%, 09/14/21 | 250,000 | 252,651 |
| 2.13%, 01/18/22 (d) | 1,100,000 | 1,128,759 |
| 1.75%, 09/14/22 | 500,000 | 515,485 |
| 2.50%, 01/18/23 | 600,000 | 632,238 |
| 0.50%, 05/24/23 | 1,050,000 | 1,057,864 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.00%, 10/04/23 | 200,000 | 216,956 |
| 0.25%, 11/15/23 (f) | 1,500,000 | 1,499,475 |
| 2.63%, 01/16/24 | 500,000 | 539,380 |
| 3.00%, 02/21/24 | 250,000 | 273,355 |
| 2.13%, 01/15/25 | 1,000,000 | 1,075,740 |
| 1.75%, 03/14/25 | 500,000 | 530,800 |
| 0.88%, 04/03/25 | 300,000 | 306,690 |
| 0.63%, 07/15/25 | 400,000 | 404,418 |
| 2.00%, 06/02/26 | 524,000 | 567,943 |
| 2.00%, 07/23/26 | 300,000 | 325,461 |
| 2.38%, 07/07/27 | 350,000 | 390,282 |
| 3.13%, 09/18/28 | 650,000 | 771,391 |
| 2.25%, 06/18/29 | 700,000 | 785,368 |
| 4.38%, 01/24/44 | 100,000 | 153,298 |
| International Bank for Reconstruction & Development |
| 2.25%, 06/24/21 | 900,000 | 914,841 |
| 2.75%, 07/23/21 | 800,000 | 818,112 |
| 1.38%, 09/20/21 | 500,000 | 506,052 |
| 2.13%, 12/13/21 | 300,000 | 307,349 |
| 2.00%, 01/26/22 | 750,000 | 768,757 |
| 1.63%, 02/10/22 | 705,000 | 719,245 |
| 2.13%, 07/01/22 | 600,000 | 620,928 |
| 1.88%, 10/07/22 | 200,000 | 206,952 |
| 2.13%, 02/13/23 | 505,000 | 528,442 |
| 1.88%, 06/19/23 | 250,000 | 261,493 |
| 3.00%, 09/27/23 | 1,250,000 | 1,355,412 |
| 2.50%, 03/19/24 | 1,150,000 | 1,240,154 |
| 1.50%, 08/28/24 | 500,000 | 523,547 |
| 2.50%, 11/25/24 | 600,000 | 654,648 |
| 1.63%, 01/15/25 | 750,000 | 790,684 |
| 0.75%, 03/11/25 | 350,000 | 355,973 |
| 0.63%, 04/22/25 | 1,000,000 | 1,011,415 |
| 0.38%, 07/28/25 | 1,250,000 | 1,248,700 |
| 2.50%, 07/29/25 | 1,150,000 | 1,267,794 |
| 1.88%, 10/27/26 | 200,000 | 216,052 |
| 2.50%, 11/22/27 | 350,000 | 395,572 |
| 1.75%, 10/23/29 | 450,000 | 487,186 |
| 0.88%, 05/14/30 | 500,000 | 502,070 |
| 0.75%, 08/26/30 | 750,000 | 742,005 |
| 4.75%, 02/15/35 | 330,000 | 486,397 |
| International Finance Corp. |
| 1.13%, 07/20/21 | 164,000 | 165,320 |
| 2.00%, 10/24/22 | 200,000 | 207,636 |
| 0.50%, 03/20/23 | 200,000 | 201,471 |
| 2.88%, 07/31/23 | 550,000 | 592,034 |
| 1.38%, 10/16/24 | 350,000 | 365,178 |
| 0.38%, 07/16/25 | 450,000 | 449,960 |
| 2.13%, 04/07/26 | 200,000 | 218,234 |
| 0.75%, 08/27/30 | 500,000 | 494,675 |
| Nordic Investment Bank |
| 2.25%, 09/30/21 | 200,000 | 204,322 |
| 2.13%, 02/01/22 | 250,000 | 256,670 |
| 0.38%, 05/19/23 | 200,000 | 200,873 |
| 2.88%, 07/19/23 | 250,000 | 268,796 |
| 2.25%, 05/21/24 | 250,000 | 268,033 |
| The Asian Infrastructure Investment Bank |
| 2.25%, 05/16/24 | 400,000 | 428,300 |
| 0.50%, 05/28/25 | 500,000 | 501,530 |
| | | 65,064,383 |
| Total Government Related |
| (Cost $259,124,361) | | 274,833,886 |
|
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Securitized 29.1% of net assets |
| |
| Asset-Backed Securities 0.3% |
| Automobile 0.1% |
| Ally Auto Receivables Trust |
| Series 2018-3 Class A4 | | |
| 3.12%, 07/17/23 (a) | 695,000 | 718,618 |
| Ally Master Owner Trust |
| Series 2018-2A | | |
| 3.29%, 05/15/23 (a) | 200,000 | 204,012 |
| Series 2018-4A | | |
| 3.30%, 07/17/23 (a) | 250,000 | 256,214 |
| Ford Credit Auto Owner Trust |
| Series 2018-A Class A4 | | |
| 3.16%, 10/15/23 (a) | 1,615,000 | 1,677,369 |
| Ford Credit Floorplan Master Owner Trust A |
| Series 2013-5 Class A2 | | |
| 3.06%, 04/15/26 (a) | 172,000 | 185,544 |
| Nissan Auto Receivables Owner Trust |
| Series 2017-C Class A4 | | |
| 2.28%, 02/15/24 (a) | 650,000 | 662,574 |
| Toyota Auto Receivables Owner Trust |
| Series 2019-B Class A3 | | |
| 2.57%, 08/15/23 (a) | 620,000 | 637,140 |
| Series 2018-C Class A4 | | |
| 3.13%, 02/15/24 (a) | 150,000 | 156,887 |
| 1.68%, 05/15/25 (a) | 1,030,000 | 1,064,542 |
| | | 5,562,900 |
| Credit Card 0.2% |
| Citibank Credit Card Issuance Trust |
| Series 2018-A6 Class A6 | | |
| 3.21%, 12/07/24 (a) | 600,000 | 638,221 |
| Discover Card Execution Note Trust |
| Series 2018-A5 Class A5 | | |
| 3.32%, 03/15/24 (a) | 500,000 | 515,986 |
| American Express Credit Account Master Trust |
| Series 2018-2A | | |
| 3.01%, 10/15/25 (a) | 1,800,000 | 1,919,654 |
| Capital One Multi-Asset Execution Trust |
| Series 2019-A3 Class A3 | | |
| 2.06%, 08/15/28 (a) | 1,000,000 | 1,073,665 |
| American Express Credit Account Master Trust |
| Series 2018-8A | | |
| 3.18%, 04/15/24 (a) | 1,100,000 | 1,133,382 |
| Capital One Multi-Asset Execution Trust |
| Series 2017-A6 Class A6 | | |
| 2.29%, 07/15/25 (a) | 450,000 | 467,788 |
| Discover Card Execution Note Trust |
| Series 2018-A1 Class A1 | | |
| 3.03%, 08/15/25 (a) | 300,000 | 319,719 |
| American Express Credit Account Master Trust |
| Series 2019-1A | | |
| 2.87%, 10/15/24 (a) | 1,200,000 | 1,247,728 |
| 2.00%, 04/15/25 (a) | 1,000,000 | 1,033,097 |
| | | 8,349,240 |
| | | 13,912,140 |
| |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Commercial Mortgage-Backed Securities 2.2% |
| Banc of America Commercial Mortgage Trust |
| Series 2016-UB10 Class A3 | | |
| 2.90%, 07/15/49 (a) | 350,000 | 376,287 |
| BANK |
| Series 2017-BNK8 Class A4 | | |
| 3.49%, 11/15/50 (a) | 1,190,000 | 1,348,363 |
| Series 2017-BNK9 Class A4 | | |
| 3.54%, 11/15/54 (a) | 950,000 | 1,078,028 |
| Series 2017-BNK7 Class A5 | | |
| 3.44%, 09/15/60 (a) | 150,000 | 168,842 |
| Series 2019-BN19 Class A3 | | |
| 3.18%, 08/15/61 (a) | 600,000 | 676,161 |
| 2.40%, 03/15/63 (a) | 300,000 | 321,263 |
| BBCMS Mortgage Trust |
| Series 2017-C1 Class A2 | | |
| 3.19%, 02/15/50 (a) | 200,000 | 205,201 |
| Series 2018-C2 Class A4 | | |
| 4.05%, 12/15/51 (a) | 449,000 | 527,129 |
| Benchmark Mortgage Trust |
| Series 2019-B9 Class A5 | | |
| 4.02%, 03/15/52 (a) | 100,000 | 118,665 |
| Series 2019-B12 Class A5 | | |
| 3.12%, 08/15/52 (a) | 700,000 | 784,894 |
| 3.72%, 03/15/62 (a) | 1,800,000 | 2,098,551 |
| CD Mortgage Trust |
| Series 2016-CD1 Class A2 | | |
| 2.45%, 08/10/49 (a) | 289,000 | 292,273 |
| Series 2016-CD2 Class A4 | | |
| 3.53%, 11/10/49 (a) | 240,000 | 269,590 |
| CFCRE Commercial Mortgage Trust |
| Series 2016-C3 Class A3 | | |
| 3.87%, 01/10/48 (a)(d) | 402,000 | 451,494 |
| Series 2016-C7 Class A3 | | |
| 3.84%, 12/10/54 (a) | 2,200,000 | 2,496,761 |
| Series 2016-C4 Class A4 | | |
| 3.28%, 05/10/58 (a) | 430,000 | 469,501 |
| Citigroup Commercial Mortgage Trust |
| Series 2012-GC8 Class A4 | | |
| 3.02%, 09/10/45 (a) | 116,652 | 119,701 |
| Series 2014-GC25 Class A4 | | |
| 3.64%, 10/10/47 (a) | 253,748 | 278,295 |
| Series 2016-GC36 Class A5 | | |
| 3.62%, 02/10/49 (a) | 2,260,000 | 2,521,955 |
| Series 2016-GC37 Class A4 | | |
| 3.31%, 04/10/49 (a) | 100,000 | 110,112 |
| Series 2017-C4 Class A4 | | |
| 3.47%, 10/12/50 (a) | 5,700,000 | 6,475,917 |
| COMM Mortgage Trust |
| Series 2012-LC4 Class A4 | | |
| 3.29%, 12/10/44 (a) | 70,033 | 71,786 |
| Series 2013-CCRE6 Class A4 | | |
| 3.10%, 03/10/46 (a) | 300,000 | 313,481 |
| Series 2014-CCRE15 Class A4 | | |
| 4.07%, 02/10/47 (a)(g)(k) | 1,200,000 | 1,315,602 |
| Series 2014-LC15 Class A4 | | |
| 4.01%, 04/10/47 (a) | 250,000 | 273,008 |
| Series 2014-CR18 Class A4 | | |
| 3.55%, 07/15/47 (a) | 497,004 | 532,618 |
| Series 2014-UBS4 Class A5 | | |
| 3.69%, 08/10/47 (a) | 1,120,000 | 1,220,895 |
| Series 2014-LC17 Class A5 | | |
| 3.92%, 10/10/47 (a) | 45,000 | 49,624 |
| Series 2014-CR20 Class A3 | | |
| 3.33%, 11/10/47 (a) | 654,000 | 703,658 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Series 2015-DC1 Class A5 | | |
| 3.35%, 02/10/48 (a) | 500,000 | 542,720 |
| Series 2015-CR24 Class A5 | | |
| 3.70%, 08/10/48 (a) | 1,148,000 | 1,278,383 |
| Series 2015-LC23 Class A4 | | |
| 3.77%, 10/10/48 (a) | 330,000 | 369,598 |
| Series 2016-CR28 Class A4 | | |
| 3.76%, 02/10/49 (a) | 602,000 | 677,671 |
| Series 2016-DC2 Class A5 | | |
| 3.77%, 02/10/49 (a) | 300,000 | 336,663 |
| Series 2015-PC1 Class ASB | | |
| 3.61%, 07/10/50 (a) | 959,398 | 1,014,709 |
| Series 2013-CCRE11 Class A4 | | |
| 4.26%, 08/10/50 (a) | 2,350,000 | 2,562,792 |
| CSAIL Commercial Mortgage Trust |
| Series 2015-C1 Class A4 | | |
| 3.51%, 04/15/50 (a) | 1,405,000 | 1,533,808 |
| CSMC Trust |
| Series 2016 Class A4 | | |
| 3.79%, 12/15/49 (a) | 2,000,000 | 2,265,883 |
| Fannie Mae-ACES |
| Series 2014-M2 Class A2 | | |
| 3.51%, 12/25/23 (a) | 101,484 | 110,520 |
| Series 2015-M13 Class A2 | | |
| 2.80%, 06/25/25 (a)(g)(l) | 200,000 | 218,357 |
| Series 2016-M11 Class A2 | | |
| 2.37%, 07/25/26 (a)(g)(l) | 785,000 | 850,412 |
| Freddie Mac Multifamily Structured Pass Through Certificates |
| Series K058 Class A2 | | |
| 2.65%, 08/25/26 (a) | 600,000 | 660,393 |
| Series K067 Class A1 | | |
| 2.90%, 03/25/27 (a) | 1,854,104 | 2,008,668 |
| Series K070 Class A2 | | |
| 3.30%, 11/25/27 (a) | 500,000 | 577,376 |
| Freddie Mac Multifamily Structured Pass-Through Certificates |
| Series K021 Class A2 | | |
| 2.40%, 06/25/22 (a) | 128,000 | 131,158 |
| Series K024 Class A2 | | |
| 2.57%, 09/25/22 (a) | 531,000 | 548,311 |
| Series K027 Class A2 | | |
| 2.64%, 01/25/23 (a) | 1,805,000 | 1,886,246 |
| Series K029 Class A2 | | |
| 3.32%, 02/25/23 (a)(g)(m) | 923,000 | 980,598 |
| Series K030 Class A2 | | |
| 3.25%, 04/25/23 (a)(g)(m) | 200,000 | 212,675 |
| Series K033 Class A2 | | |
| 3.06%, 07/25/23 (a) | 381,000 | 406,312 |
| Series K034 Class A2 | | |
| 3.53%, 07/25/23 (a) | 100,000 | 107,973 |
| Series K035 Class A2 | | |
| 3.46%, 08/25/23 (a)(g)(m) | 983,000 | 1,060,435 |
| Series K725 Class A2 | | |
| 3.00%, 01/25/24 (a) | 1,000,000 | 1,076,641 |
| Series K037 Class A2 | | |
| 3.49%, 01/25/24 (a) | 750,000 | 817,422 |
| Series K727 Class A2 | | |
| 2.95%, 07/25/24 (a) | 100,000 | 107,788 |
| Series K728 Class A2 | | |
| 3.06%, 08/25/24 (a)(g)(m) | 400,000 | 434,352 |
| Series K040 Class A2 | | |
| 3.24%, 09/25/24 (a) | 100,000 | 109,963 |
| Series K042 Class A2 | | |
| 2.67%, 12/25/24 (a) | 400,000 | 433,020 |
| Series K043 Class A2 | | |
| 3.06%, 12/25/24 (a) | 200,000 | 219,603 |
| Series K044 Class A2 | | |
| 2.81%, 01/25/25 (a) | 645,000 | 701,502 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Series K045 Class A2 | | |
| 3.02%, 01/25/25 (a) | 500,000 | 548,729 |
| Series KS03 Class A4 | | |
| 3.16%, 05/25/25 (a)(g)(m) | 150,000 | 165,279 |
| Series K047 Class A2 | | |
| 3.33%, 05/25/25 (a)(g)(m) | 400,000 | 446,755 |
| Series K048 Class A2 | | |
| 3.28%, 06/25/25 (a)(g)(m) | 1,150,000 | 1,282,271 |
| Series K733 Class A2 | | |
| 3.75%, 08/25/25 (a)(g)(m) | 1,400,000 | 1,580,588 |
| Series K052 Class A2 | | |
| 3.15%, 11/25/25 (a) | 100,000 | 111,558 |
| Series K054 Class A2 | | |
| 2.75%, 01/25/26 (a) | 10,000 | 10,976 |
| Series K735 Class A2 | | |
| 2.86%, 05/25/26 (a) | 830,000 | 920,041 |
| Series K061 Class A2 | | |
| 3.35%, 11/25/26 (a)(g)(m) | 2,500,000 | 2,859,114 |
| Series K062 Class A2 | | |
| 3.41%, 12/25/26 (a) | 300,000 | 344,433 |
| Series K064 Class A2 | | |
| 3.22%, 03/25/27 (a) | 750,000 | 854,933 |
| Series K066 Class A2 | | |
| 3.12%, 06/25/27 (a) | 1,200,000 | 1,363,108 |
| Series K074 Class A1 | | |
| 3.60%, 09/25/27 (a) | 144,363 | 161,948 |
| Series K071 Class A2 | | |
| 3.29%, 11/25/27 (a) | 2,000,000 | 2,307,377 |
| Series K072 Class A2 | | |
| 3.44%, 12/25/27 (a) | 900,000 | 1,048,979 |
| Series K074 Class A2 | | |
| 3.60%, 01/25/28 (a) | 3,500,000 | 4,118,065 |
| Series K078 Class A2 | | |
| 3.85%, 06/25/28 (a) | 1,182,367 | 1,416,321 |
| Series K083 Class A2 | | |
| 4.05%, 09/25/28 (a)(g)(m) | 250,000 | 304,774 |
| Series K085 Class A2 | | |
| 4.06%, 10/25/28 (a)(g)(m) | 700,000 | 847,507 |
| Series K087 Class A2 | | |
| 3.77%, 12/25/28 (a) | 100,000 | 120,113 |
| Series K099 Class A2 | | |
| 2.60%, 09/25/29 (a) | 2,210,000 | 2,490,275 |
| Series K-1512 Class A2 | | |
| 2.99%, 05/25/31 (a) | 2,500,000 | 2,946,033 |
| Series K154 Class A2 | | |
| 3.42%, 04/25/32 (a) | 700,000 | 836,148 |
| Series K157 Class A2 | | |
| 3.99%, 05/25/33 (a) | 360,000 | 442,537 |
| GS Mortgage Securities Trust |
| Series 2012-GCJ7 Class A4 | | |
| 3.38%, 05/10/45 (a) | 644,871 | 655,757 |
| Series 2014-GC20 Class A5 | | |
| 4.00%, 04/10/47 (a) | 225,000 | 244,882 |
| JPMBB Commercial Mortgage Securities Trust |
| Series 2013-C17 Class A4 | | |
| 4.20%, 01/15/47 (a) | 200,000 | 218,774 |
| Series 2015-C33 Class A3 | | |
| 3.50%, 12/15/48 (a) | 788,779 | 871,354 |
| Series 2015-C33 Class A4 | | |
| 3.77%, 12/15/48 (a) | 550,000 | 617,195 |
| JPMDB Commercial Mortgage Securities Trust |
| Series 2015-C32 Class A5 | | |
| 3.60%, 11/15/48 (a) | 1,000,000 | 1,110,239 |
| Series 2018-C8 Class A3 | | |
| 3.94%, 06/15/51 (a) | 300,000 | 349,997 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Morgan Stanley Bank of America Merrill Lynch Trust |
| Series 2013-C11 Class A4 | | |
| 4.30%, 08/15/46 (a)(g)(m) | 350,000 | 379,291 |
| Series 2013-C13 Class A4 | | |
| 4.04%, 11/15/46 (a) | 360,000 | 391,048 |
| Series 2013-C8 Class AS | | |
| 3.38%, 12/15/48 (a) | 100,000 | 104,083 |
| Series 2016-C28 Class A4 | | |
| 3.54%, 01/15/49 (a) | 1,300,000 | 1,443,009 |
| Morgan Stanley Capital I Trust |
| Series 2015-A4 Class A4 | | |
| 3.78%, 05/15/48 (a) | 50,000 | 55,542 |
| Series 2015-UBS8 Class A4 | | |
| 3.81%, 12/15/48 (a) | 400,000 | 447,537 |
| Series 2011-C3 Class A4 | | |
| 4.12%, 07/15/49 (a) | 189,765 | 192,577 |
| UBS Commercial Mortgage Trust |
| Series 2017-C3 Class A4 | | |
| 3.43%, 08/15/50 (a) | 200,000 | 224,749 |
| Series 2017-C6 Class A5 | | |
| 3.58%, 12/15/50 (a) | 600,000 | 682,191 |
| UBS-Barclays Commercial Mortgage Trust |
| Series 2013-C5 Class A4 | | |
| 3.18%, 03/10/46 (a) | 250,000 | 261,085 |
| Wells Fargo Commercial Mortgage Trust |
| Series 2013-LC12 Class A4 | | |
| 4.22%, 07/15/46 (a)(g)(k) | 1,409,000 | 1,512,938 |
| Series 2015-C28 Class A3 | | |
| 3.29%, 05/15/48 (a) | 270,604 | 291,023 |
| 3.72%, 12/15/48 (a) | 2,100,000 | 2,344,649 |
| Series 2016-NXS6 Class ASB | | |
| 2.83%, 11/15/49 (a) | 350,000 | 369,144 |
| 3.58%, 10/15/50 (a) | 1,020,000 | 1,157,165 |
| Series 2017-C41 Class A4 | | |
| 3.47%, 11/15/50 (a) | 300,000 | 338,443 |
| Series 2017-C42 Class A4 | | |
| 3.59%, 12/15/50 (a) | 1,400,000 | 1,594,595 |
| Series 2018-C44 Class A5 | | |
| 4.21%, 05/15/51 (a) | 950,000 | 1,122,567 |
| Series 2019-C50 Class A5 | | |
| 3.73%, 05/15/52 (a) | 675,000 | 785,907 |
| 3.04%, 10/15/52 (a) | 500,000 | 559,834 |
| 2.73%, 02/15/53 (a) | 1,200,000 | 1,310,003 |
| Series 2015-C30 Class A4 | | |
| 3.66%, 09/15/58 (a) | 200,000 | 222,192 |
| Series 2016-NXS5 Class A4 | | |
| 3.37%, 01/15/59 (a) | 700,000 | 758,177 |
| Series 2016-C32 Class A4 | | |
| 3.56%, 01/15/59 (a) | 1,200,000 | 1,332,530 |
| Series 2016-NXS5 Class A6 | | |
| 3.64%, 01/15/59 (a) | 1,330,400 | 1,485,393 |
| Series 2013-C33 Class A3 | | |
| 3.16%, 03/15/59 (a) | 155,000 | 167,240 |
| WFRBS Commercial Mortgage Trust |
| Series 2013-C15 Class A4 | | |
| 4.15%, 08/15/46 (a)(g)(m) | 710,000 | 768,312 |
| 3.90%, 12/15/46 (a) | 467,000 | 499,455 |
| Series 2014-C20 Class ASB | | |
| 3.64%, 05/15/47 (a) | 761,516 | 797,059 |
| | | 103,105,405 |
| |
| Mortgage-Backed Securities Pass-Through 26.6% |
| Fannie Mae |
| 3.50%, 11/01/20 to 08/01/50 (a) | 116,150,266 | 124,516,958 |
| 4.00%, 04/01/24 to 05/01/50 (a) | 84,410,927 | 91,829,281 |
| 4.50%, 12/01/24 to 05/01/50 (a) | 34,033,476 | 37,656,543 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.00%, 10/01/26 to 08/01/50 (a) | 109,575,077 | 116,233,911 |
| 2.50%, 07/01/27 to 09/01/50 (a) | 76,327,912 | 80,352,997 |
| 2.00%, 12/01/27 to 09/01/50 (a) | 24,946,942 | 25,840,968 |
| 5.50%, 12/01/32 to 11/01/48 (a) | 4,176,135 | 4,892,443 |
| 5.00%, 11/01/33 to 01/01/50 (a) | 9,457,132 | 10,631,247 |
| 6.50%, 08/01/34 to 05/01/40 (a) | 221,365 | 266,883 |
| 6.00%, 04/01/35 to 07/01/41 (a) | 2,038,819 | 2,412,841 |
| 1.50%, 08/01/35 to 09/01/35 (a) | 796,145 | 815,078 |
| 3.00%, 05/01/46 to 11/01/46 (a)(d) | 9,000,458 | 9,605,288 |
| Federal Home Loan Bank |
| 1.50%, 08/01/35 (a) | 100,000 | 102,385 |
| 3.00%, 05/01/40 (a) | 495,708 | 525,948 |
| Freddie Mac |
| 2.00%, 08/01/23 to 08/01/50 (a) | 18,220,008 | 18,878,920 |
| 4.00%, 03/01/24 to 07/01/50 (a) | 42,601,074 | 46,100,062 |
| 3.50%, 01/01/26 to 06/01/50 (a) | 65,393,608 | 69,926,905 |
| 3.00%, 08/01/26 to 08/01/50 (a) | 79,547,380 | 84,326,888 |
| 2.50%, 04/01/27 to 08/01/50 (a) | 51,263,013 | 53,935,935 |
| 6.00%, 05/01/32 to 07/01/40 (a) | 1,236,108 | 1,465,951 |
| 5.50%, 06/01/33 to 08/01/41 (a) | 2,712,869 | 3,181,680 |
| 4.50%, 05/01/34 to 08/01/49 (a) | 17,545,759 | 19,402,009 |
| 5.00%, 12/01/35 to 12/01/49 (a) | 5,384,362 | 6,075,598 |
| 6.50%, 02/01/36 (a) | 125,031 | 149,687 |
| 4.50%, 07/01/42 (a)(d) | 229,994 | 258,165 |
| Freddie Mac Gold |
| 5.00%, 04/01/39 (a) | 380,046 | 436,367 |
| 3.50%, 02/01/41 to 11/01/45 (a) | 2,736,237 | 2,955,302 |
| 4.00%, 07/01/44 to 08/01/48 (a) | 2,504,329 | 2,705,783 |
| 3.00%, 09/01/46 (a) | 297,410 | 314,570 |
| 4.50%, 09/01/48 (a) | 439,627 | 477,020 |
| Ginnie Mae |
| 3.00%, 04/20/27 to 08/20/50 (a) | 86,569,689 | 91,491,357 |
| 2.50%, 08/20/27 to 08/20/50 (a) | 29,897,541 | 31,538,663 |
| 3.50%, 09/20/32 to 06/20/50 (a) | 90,575,463 | 96,594,879 |
| 5.00%, 02/20/33 to 07/20/49 (a) | 8,941,020 | 9,982,705 |
| 5.50%, 04/15/33 to 03/20/49 (a) | 1,266,027 | 1,422,528 |
| 4.00%, 06/15/39 to 02/20/50 (a) | 43,048,345 | 46,480,911 |
| 4.50%, 07/15/39 to 02/20/50 (a) | 19,851,680 | 21,785,060 |
| 6.00%, 04/20/44 (a) | 261,147 | 298,532 |
| 3.00%, 11/20/45 (a)(d) | 2,581,538 | 2,731,873 |
| 2.00%, 08/20/50 (a) | 764,775 | 793,095 |
| Ginnie Mae TBA |
| 2.50%, 09/21/50 (a)(f) | 1,000,000 | 1,053,453 |
| 3.00%, 09/21/50 (a)(f) | 10,500,000 | 11,054,355 |
| 3.50%, 09/21/50 (a)(f) | 3,000,000 | 3,156,321 |
| UMBS TBA |
| 2.00%, 09/17/35 (a)(f) | 500,000 | 520,328 |
| 2.50%, 09/17/35 (a)(f) | 9,000,000 | 9,441,982 |
| 3.00%, 09/17/35 to 09/14/50 (a)(f) | 59,000,000 | 62,154,595 |
| 3.50%, 09/17/35 to 09/14/50 (a)(f) | 18,500,000 | 19,515,503 |
| 4.00%, 09/17/35 to 09/14/50 (a)(f) | 8,000,000 | 8,513,059 |
| 2.50%, 09/14/50 (a)(f) | 15,000,000 | 15,786,145 |
| | | 1,250,588,957 |
| Total Securitized |
| (Cost $1,331,581,365) | | 1,367,606,502 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
| Security | Number
of Shares | Value ($) |
| Other Investment Company 4.5% of net assets |
| |
| Money Market Fund 4.5% |
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.04% (n) | 211,953,837 | 211,953,837 |
| Total Other Investment Company |
| (Cost $211,953,837) | | 211,953,837 |
| * | Supranational bonds represent the debt of international organizations or institutions such as the World Bank, the International Monetary Fund, regional multilateral development banks and others. |
| (a) | The effective maturity may be shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or as the result of embedded demand features (puts or calls). |
| (b) | Security converts to floating rate after the fixed-rate coupon period. |
| (c) | Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $32,501,083 or 0.7% of net assets. |
| (d) | All or a portion of this security is designated as collateral for delayed-delivery securities. |
| (e) | Issuer is affiliated with the fund’s investment adviser. |
| (f) | Security or a portion of the security purchased on a delayed-delivery or when-issued basis. |
| (g) | Variable-rate security. |
| (h) | Interest rate is subject to adjustments from time to time if a nationally recognized statistical rating organization downgrades (or subsequently upgrades) the debt rating assigned to the bond. |
| (i) | Guaranteed by the Republic of Germany. |
| (j) | Zero Coupon Bond. |
| (k) | Security is a type of structured MBS that involves tranching (i.e. dividing) the underlying MBS pools’ cash flows into securities that have varying coupon and principal payback profiles. Tranches pay an investor an interest rate, which is determined by a formula set forth in the security’s offering documents. The floating interest rate may reset once a year and is generally tied to LIBOR, CMT, or COFI. A variable interest rate can also be affected by the current WAC. |
| (l) | Variable rate is determined by formula set forth in the security’s offering documents and is affected by the MBS pass-through rate, which is the rate earned from a securitized asset pool once management fees and guarantee fees have been paid to the securitizing corporation. |
| (m) | Variable rate is determined by formula set forth in the security’s offering documents and is affected by the current WAC. |
| (n) | The rate shown is the 7-day yield. |
| | |
| ACES — | Alternate Credit Enhancement Securities |
| CMT — | Constant Maturity Treasury is an index published by the Federal Reserve Board based on the monthly average yield of a range of Treasury securities maturing at different periods, adjusted to the equivalent of a one-year maturity. |
| COFI — | Cost of Funds Index is a regional index of the average interest expenses paid by financial institutions on money market accounts, passbooks, CDs, and other liabilities. |
| GO — | General obligation |
| LIBOR — | London Interbank Offered Rate is the interest rate banks charge each other for short-term loans. |
| MBS — | Mortgage-Backed Security |
| RB — | Revenue bond |
| REIT — | Real Estate Investment Trust |
| TBA — | To-be-announced |
| UMBS — | Uniform Mortgage-Backed Securities are single-class securities backed by mortgage loans purchased by either Freddie Mac or Fannie Mae. |
| WAC — | Weighted Average Coupon, which is the weighted average gross interest rate of the securitized asset pool and is determined by the different speeds at which the underlying mortgages are paid down. |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
The fund owns corporate bonds of an affiliate, The Charles Schwab Corp., since those corporate bonds are included in its index. Below is a summary of investment activities involving The Charles Schwab Corp. notes owned by the fund during the period ended August 31, 2020:
| |
Value at
08/31/19 | Gross
Purchases* | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
08/31/20 | Face
Amount at
08/31/20 | Interest Income
Earned |
| Charles Schwab Corp., 3.25%, 05/21/21 | $— | $101,296 | ($102,488) | $1,192 | $— | $— | — | $1,183 |
| Charles Schwab Corp., 2.65%, 01/25/23 | — | 157,434 | — | — | 688 | 158,122 | 150,000 | 983 |
| Charles Schwab Corp., 4.20%, 03/24/25 | — | 159,318 | — | — | 14,956 | 174,274 | 150,000 | 2,520 |
| Charles Schwab Corp., 3.85%, 05/21/25 | — | 160,794 | — | — | 10,612 | 171,406 | 150,000 | 3,962 |
| Charles Schwab Corp., 3.20%, 01/25/28 | — | 157,409 | — | — | 13,709 | 171,118 | 150,000 | 3,293 |
| Charles Schwab Corp., 4.00%, 02/01/29 | — | 169,821 | — | — | 10,351 | 180,172 | 150,000 | 3,450 |
| Charles Schwab Corp., 3.25%, 05/22/29 | — | 214,559 | — | — | 16,905 | 231,464 | 200,000 | 2,817 |
| Charles Schwab Corp., 4.63%, 03/22/30 | — | 110,738 | — | — | 16,861 | 127,599 | 100,000 | 1,863 |
| Total | $— | $1,231,369 | ($102,488) | $1,192 | $84,082 | $1,214,155 | | $20,071 |
* Amount includes amortization of premiums and/or accretion of discounts.
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2020 (see financial note 2(a) for additional information):
| Description | Quoted Prices in
Active Markets for
Identical Assets
(Level 1) | Other Significant
Observable Inputs
(Level 2) | Significant
Unobservable Inputs
(Level 3) | Total | |
| Assets | | | | | |
| Corporates 1 | $— | $1,287,766,752 | $— | $1,287,766,752 | |
| Treasuries | — | 1,743,120,307 | — | 1,743,120,307 | |
| Government Related1 | — | 274,833,886 | — | 274,833,886 | |
| Securitized 1 | — | 1,367,606,502 | — | 1,367,606,502 | |
| Other Investment Company1 | 211,953,837 | — | — | 211,953,837 | |
| Total | $211,953,837 | $4,673,327,447 | $— | $4,885,281,284 | |
| 1 | As categorized in Portfolio Holdings. |
Fund investments in underlying mutual funds are classified as Level 1, without consideration to the classification level of the investments held by the underlying mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Statement of Assets and Liabilities
As of August 31, 2020
| Assets |
| Investments in affiliated issuer, at value (cost $1,130,073) | | $1,214,155 |
| Investments in unaffiliated issuers, at value (cost $4,618,162,166) | | 4,884,067,129 |
| Deposits with brokers for TBA margin | | 20,000 |
| Receivables: | | |
| Investments sold | | 43,277,940 |
| Fund shares sold | | 39,520,878 |
| Interest | | 22,656,834 |
| Dividends | + | 10,751 |
| Total assets | | 4,990,767,687 |
| Liabilities |
| Payables: | | |
| Investments bought | | 140,732,044 |
| Investments bought — delayed-delivery | | 143,369,032 |
| Investment adviser fees | | 156,277 |
| Fund shares redeemed | | 7,798,532 |
| Distributions to shareholders | + | 1,624,627 |
| Total liabilities | | 293,680,512 |
| Net Assets |
| Total assets | | 4,990,767,687 |
| Total liabilities | – | 293,680,512 |
| Net assets | | $4,697,087,175 |
| Net Assets by Source | | |
| Capital received from investors | | 4,428,359,600 |
| Total distributable earnings | | 268,727,575 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $4,697,087,175 | | 433,496,215 | | $10.84 |
| | | | | |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Statement of Operations
For the period September 1, 2019 through August 31, 2020
| Investment Income |
| Interest received from affiliated issuer | | $20,071 |
| Interest received from unaffiliated issuers | | 85,246,027 |
| Dividends received from unaffiliated issuers | | 998,017 |
| Securities on loan, net | + | 3,131 |
| Total investment income | | 86,267,246 |
| Expenses |
| Investment adviser fees | | 1,461,276 |
| Total expenses | – | 1,461,276 |
| Net investment income | | 84,805,970 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on affiliated issuer | | 1,192 |
| Net realized gains on unaffiliated investments | + | 27,474,579 |
| Net realized gains | | 27,475,771 |
| Net change in unrealized appreciation (depreciation) on affiliated issuer | | 84,082 |
| Net change in unrealized appreciation (depreciation) on unaffiliated investments | + | 116,803,902 |
| Net change in unrealized appreciation (depreciation) | + | 116,887,984 |
| Net realized and unrealized gains | | 144,363,755 |
| Increase in net assets resulting from operations | | $229,169,725 |
Schwab Taxable Bond Funds | Annual Report
Schwab U.S. Aggregate Bond Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
| Operations | |
| | 9/1/19-8/31/20 | 9/1/18-8/31/19 |
| Net investment income | | $84,805,970 | $69,733,806 |
| Net realized gains (losses) | | 27,475,771 | (3,080,570) |
| Net change in unrealized appreciation (depreciation) | + | 116,887,984 | 189,061,092 |
| Increase in net assets from operations | | 229,169,725 | 255,714,328 |
| Distributions to Shareholders | |
| Total distributions | | ($93,281,965) | ($72,211,474) |
| Transactions in Fund Shares | | | |
| | | 9/1/19-8/31/20 | 9/1/18-8/31/19 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 244,861,715 | $2,598,835,807 | 171,989,490 | $1,698,925,657 |
| Shares reinvested | | 7,326,953 | 77,716,227 | 6,224,597 | 62,019,990 |
| Shares redeemed | + | (102,784,206) | (1,086,743,664) | (99,160,370) | (979,041,765) |
| Net transactions in fund shares | | 149,404,462 | $1,589,808,370 | 79,053,717 | $781,903,882 |
| Shares Outstanding and Net Assets | | | |
| | | 9/1/19-8/31/20 | 9/1/18-8/31/19 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 284,091,753 | $2,971,391,045 | 205,038,036 | $2,005,984,309 |
| Total increase | + | 149,404,462 | 1,725,696,130 | 79,053,717 | 965,406,736 |
| End of period | | 433,496,215 | $4,697,087,175 | 284,091,753 | $2,971,391,045 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Financial Statements
Financial Highlights
| | 9/1/19–
8/31/20 | 9/1/18–
8/31/19 | 9/1/17��
8/31/18 | 2/23/17 1–
8/31/17 | | |
| Per-Share Data |
| Net asset value at beginning of period | $10.13 | $9.80 | $10.04 | $10.00 | | |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)2 | 0.19 | 0.24 | 0.19 | 0.08 | | |
| Net realized and unrealized gains (losses) | 0.27 | 0.33 | (0.24) | 0.04 | | |
| Total from investment operations | 0.46 | 0.57 | (0.05) | 0.12 | | |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.20) | (0.24) | (0.19) | (0.08) | | |
| Net asset value at end of period | $10.39 | $10.13 | $9.80 | $10.04 | | |
| Total return | 4.59% | 5.89% | (0.51%) | 1.25% 3 | | |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Total expenses | 0.06% | 0.06% | 0.06% | 0.06% 4 | | |
| Net investment income (loss) | 1.89% | 2.43% | 1.92% | 1.64% 4 | | |
| Portfolio turnover rate | 65% | 46% | 61% | 49% 3,5 | | |
| Net assets, end of period (x 1,000,000) | $1,694 | $877 | $522 | $381 | | |
| |
1
Commencement of operations.
2
Calculated based on the average shares outstanding during the period.
3
Not annualized.
4
Annualized.
5
Portfolio turnover rate excludes in-kind transactions.
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website at www.schwabfunds.com/schwabfunds_prospectus.
For fixed-rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued). For variable-rate obligations, the rate shown is the rate as of the report date based on each security’s rate reset date. The reference rate and spread used is shown parenthetically in the security description, if available; if not, the reference rate is described in a footnote. The maturity date shown for all the securities is the final legal maturity.
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Corporates 26.3% of net assets |
| |
| Financial Institutions 10.8% |
| Banking 8.6% |
| Ally Financial, Inc. |
| 4.13%, 02/13/22 | 100,000 | 103,795 |
| 4.63%, 05/19/22 | 150,000 | 158,130 |
| 3.05%, 06/05/23 (a) | 200,000 | 207,689 |
| 3.88%, 05/21/24 (a) | 100,000 | 106,455 |
| 5.13%, 09/30/24 | 100,000 | 112,137 |
| 4.63%, 03/30/25 | 100,000 | 110,782 |
| 5.80%, 05/01/25 (a) | 200,000 | 231,194 |
| American Express Co. |
| 3.70%, 11/05/21 (a) | 150,000 | 155,557 |
| 2.75%, 05/20/22 (a) | 150,000 | 155,779 |
| 2.50%, 08/01/22 (a) | 400,000 | 415,386 |
| 2.65%, 12/02/22 | 500,000 | 525,117 |
| 3.40%, 02/27/23 (a) | 500,000 | 535,212 |
| 3.70%, 08/03/23 (a) | 500,000 | 544,925 |
| 3.40%, 02/22/24 (a) | 150,000 | 164,458 |
| 2.50%, 07/30/24 (a) | 400,000 | 428,578 |
| 3.00%, 10/30/24 (a) | 100,000 | 109,114 |
| 3.63%, 12/05/24 (a) | 100,000 | 111,447 |
| American Express Credit Corp. |
| 2.70%, 03/03/22 (a) | 450,000 | 465,244 |
| Australia & New Zealand Banking Group Ltd. |
| 2.30%, 06/01/21 | 500,000 | 507,457 |
| 2.63%, 11/09/22 | 250,000 | 262,428 |
| Banco Santander S.A. |
| 3.50%, 04/11/22 | 200,000 | 208,504 |
| 3.85%, 04/12/23 | 200,000 | 215,107 |
| 2.71%, 06/27/24 | 400,000 | 426,616 |
| 2.75%, 05/28/25 | 400,000 | 425,670 |
| Bancolombia S.A. |
| 3.00%, 01/29/25 (a) | 200,000 | 203,398 |
| BancorpSouth Bank |
| 4.13%, 11/20/29 (a)(b) | 50,000 | 49,978 |
| Bank of America Corp. |
| 5.70%, 01/24/22 | 300,000 | 321,990 |
| 2.50%, 10/21/22 (a) | 400,000 | 409,682 |
| 3.30%, 01/11/23 | 750,000 | 800,542 |
| 3.12%, 01/20/23 (a)(b) | 300,000 | 310,636 |
| 2.88%, 04/24/23 (a)(b) | 150,000 | 155,642 |
| 2.82%, 07/21/23 (a)(b) | 650,000 | 677,007 |
| 4.10%, 07/24/23 | 250,000 | 275,848 |
| 3.00%, 12/20/23 (a)(b) | 950,000 | 1,001,651 |
| 4.13%, 01/22/24 | 500,000 | 559,360 |
| 3.55%, 03/05/24 (a)(b) | 650,000 | 696,231 |
| 4.00%, 04/01/24 | 250,000 | 279,378 |
| 1.49%, 05/19/24 (a)(b) | 150,000 | 153,766 |
| 3.86%, 07/23/24 (a)(b) | 500,000 | 544,537 |
| 4.20%, 08/26/24 | 600,000 | 673,512 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 4.00%, 01/22/25 | 550,000 | 615,585 |
| 3.46%, 03/15/25 (a)(b) | 400,000 | 437,140 |
| 3.95%, 04/21/25 | 650,000 | 731,702 |
| 3.88%, 08/01/25 | 350,000 | 400,232 |
| 3.09%, 10/01/25 (a)(b) | 300,000 | 326,158 |
| 2.46%, 10/22/25 (a)(b) | 750,000 | 795,502 |
| 3.37%, 01/23/26 (a)(b) | 300,000 | 330,306 |
| 2.02%, 02/13/26 (a)(b) | 200,000 | 208,658 |
| 1.32%, 06/19/26 (a)(b) | 750,000 | 760,410 |
| Bank of America NA |
| 3.34%, 01/25/23 (a)(b) | 250,000 | 260,640 |
| Bank of Montreal |
| 1.90%, 08/27/21 | 150,000 | 152,511 |
| 2.90%, 03/26/22 | 850,000 | 884,497 |
| 2.35%, 09/11/22 | 150,000 | 156,248 |
| 2.55%, 11/06/22 (a) | 150,000 | 156,950 |
| 3.30%, 02/05/24 | 300,000 | 327,523 |
| 2.50%, 06/28/24 | 200,000 | 214,138 |
| 1.85%, 05/01/25 | 150,000 | 157,520 |
| 4.34%, 10/05/28 (a)(b) | 100,000 | 108,890 |
| Barclays Bank PLC |
| 1.70%, 05/12/22 (a) | 550,000 | 560,519 |
| Barclays PLC |
| 3.20%, 08/10/21 | 200,000 | 205,148 |
| 3.68%, 01/10/23 (a) | 400,000 | 414,910 |
| 4.61%, 02/15/23 (a)(b) | 400,000 | 420,742 |
| 4.34%, 05/16/24 (a)(b) | 400,000 | 433,422 |
| 4.38%, 09/11/24 | 400,000 | 433,768 |
| 3.65%, 03/16/25 | 225,000 | 246,429 |
| 3.93%, 05/07/25 (a)(b) | 400,000 | 434,848 |
| 2.85%, 05/07/26 (a)(b) | 400,000 | 423,068 |
| BBVA USA |
| 2.88%, 06/29/22 (a) | 250,000 | 257,279 |
| 2.50%, 08/27/24 (a) | 250,000 | 258,758 |
| BNP Paribas S.A. |
| 3.25%, 03/03/23 | 500,000 | 535,627 |
| 4.25%, 10/15/24 | 200,000 | 223,362 |
| BPCE S.A. |
| 4.00%, 04/15/24 | 250,000 | 279,316 |
| Canadian Imperial Bank of Commerce |
| 2.55%, 06/16/22 | 250,000 | 260,045 |
| 0.95%, 06/23/23 | 500,000 | 505,867 |
| 2.61%, 07/22/23 (a)(b) | 150,000 | 155,949 |
| 3.50%, 09/13/23 | 150,000 | 163,916 |
| 3.10%, 04/02/24 | 150,000 | 162,491 |
| 2.25%, 01/28/25 | 150,000 | 159,322 |
| Capital One Bank USA NA |
| 3.38%, 02/15/23 | 250,000 | 264,911 |
| Capital One Financial Corp. |
| 4.75%, 07/15/21 | 150,000 | 155,740 |
| 3.05%, 03/09/22 (a) | 150,000 | 155,500 |
| 3.20%, 01/30/23 (a) | 150,000 | 158,683 |
| 2.60%, 05/11/23 (a) | 150,000 | 157,375 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.50%, 06/15/23 | 500,000 | 536,767 |
| 3.90%, 01/29/24 (a) | 150,000 | 164,234 |
| 3.75%, 04/24/24 (a) | 100,000 | 109,692 |
| 3.30%, 10/30/24 (a) | 700,000 | 762,758 |
| 3.20%, 02/05/25 (a) | 350,000 | 381,978 |
| Citibank NA |
| 3.40%, 07/23/21 (a) | 250,000 | 256,403 |
| 3.65%, 01/23/24 (a) | 500,000 | 550,280 |
| Citigroup, Inc. |
| 2.35%, 08/02/21 | 400,000 | 407,650 |
| 2.90%, 12/08/21 (a) | 350,000 | 360,481 |
| 4.50%, 01/14/22 | 500,000 | 529,002 |
| 2.75%, 04/25/22 (a) | 400,000 | 414,460 |
| 4.05%, 07/30/22 | 100,000 | 106,561 |
| 2.70%, 10/27/22 (a) | 400,000 | 418,238 |
| 2.31%, 11/04/22 (a)(b) | 300,000 | 306,005 |
| 3.14%, 01/24/23 (a)(b) | 500,000 | 517,322 |
| 3.50%, 05/15/23 | 200,000 | 214,422 |
| 2.88%, 07/24/23 (a)(b) | 600,000 | 625,326 |
| 3.88%, 10/25/23 | 400,000 | 441,244 |
| 1.68%, 05/15/24 (a)(b) | 250,000 | 256,710 |
| 4.04%, 06/01/24 (a)(b) | 150,000 | 163,292 |
| 3.75%, 06/16/24 | 100,000 | 111,162 |
| 4.00%, 08/05/24 | 300,000 | 332,634 |
| 3.88%, 03/26/25 | 200,000 | 222,640 |
| 3.35%, 04/24/25 (a)(b) | 400,000 | 435,212 |
| 3.30%, 04/27/25 | 500,000 | 555,795 |
| 4.40%, 06/10/25 | 500,000 | 570,610 |
| 3.11%, 04/08/26 (a)(b) | 750,000 | 816,615 |
| Citizens Bank NA |
| 2.65%, 05/26/22 (a) | 250,000 | 258,606 |
| 3.70%, 03/29/23 (a) | 250,000 | 268,700 |
| Comerica, Inc. |
| 3.70%, 07/31/23 (a) | 200,000 | 217,064 |
| Cooperatieve Rabobank UA |
| 3.88%, 02/08/22 | 750,000 | 788,377 |
| 3.95%, 11/09/22 | 250,000 | 267,100 |
| 2.75%, 01/10/23 | 500,000 | 527,702 |
| 4.63%, 12/01/23 | 500,000 | 557,615 |
| 4.38%, 08/04/25 | 250,000 | 285,289 |
| Credit Suisse AG |
| 2.10%, 11/12/21 | 500,000 | 510,515 |
| 2.80%, 04/08/22 | 300,000 | 311,515 |
| 1.00%, 05/05/23 | 250,000 | 254,060 |
| 3.63%, 09/09/24 | 650,000 | 724,873 |
| 2.95%, 04/09/25 | 300,000 | 329,724 |
| Credit Suisse AG/New York NY |
| 3.00%, 10/29/21 | 250,000 | 257,790 |
| Credit Suisse Group Funding Guernsey Ltd. |
| 3.80%, 09/15/22 | 500,000 | 531,192 |
| 3.80%, 06/09/23 | 500,000 | 540,615 |
| 3.75%, 03/26/25 | 500,000 | 554,792 |
| Deutsche Bank AG |
| 4.25%, 10/14/21 | 500,000 | 517,235 |
| 5.00%, 02/14/22 | 350,000 | 368,046 |
| 3.30%, 11/16/22 | 200,000 | 207,523 |
| 3.95%, 02/27/23 | 500,000 | 528,682 |
| 3.70%, 05/30/24 | 300,000 | 320,689 |
| 3.96%, 11/26/25 (a)(b) | 400,000 | 430,404 |
| Discover Bank |
| 3.20%, 08/09/21 (a) | 250,000 | 255,935 |
| 4.20%, 08/08/23 | 250,000 | 275,615 |
| 2.45%, 09/12/24 (a) | 250,000 | 265,071 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Discover Financial Services |
| 3.95%, 11/06/24 (a) | 250,000 | 274,700 |
| 3.75%, 03/04/25 (a) | 200,000 | 218,593 |
| Fifth Third Bancorp |
| 1.63%, 05/05/23 (a) | 100,000 | 102,711 |
| 3.65%, 01/25/24 (a) | 250,000 | 273,790 |
| 2.38%, 01/28/25 (a) | 100,000 | 106,486 |
| Fifth Third Bank |
| 2.25%, 06/14/21 (a) | 250,000 | 253,484 |
| 2.88%, 10/01/21 (a) | 200,000 | 204,944 |
| 1.80%, 01/30/23 (a) | 250,000 | 257,694 |
| 3.95%, 07/28/25 (a) | 250,000 | 288,121 |
| First Citizens BancShares, Inc. |
| 3.38%, 03/15/30 (a)(b) | 50,000 | 49,539 |
| First Horizon National Corp. |
| 3.55%, 05/26/23 (a) | 200,000 | 210,659 |
| 4.00%, 05/26/25 (a) | 100,000 | 108,928 |
| First Republic Bank/CA |
| 1.91%, 02/12/24 (a)(b) | 250,000 | 257,623 |
| FNB Corp/PA |
| 2.20%, 02/24/23 (a) | 50,000 | 50,127 |
| HSBC Holdings PLC |
| 2.65%, 01/05/22 | 400,000 | 411,476 |
| 4.00%, 03/30/22 | 450,000 | 474,365 |
| 3.26%, 03/13/23 (a)(b) | 400,000 | 415,556 |
| 3.60%, 05/25/23 | 200,000 | 215,272 |
| 3.03%, 11/22/23 (a)(b) | 350,000 | 367,071 |
| 4.25%, 03/14/24 | 450,000 | 492,901 |
| 3.95%, 05/18/24 (a)(b) | 400,000 | 432,170 |
| 3.80%, 03/11/25 (a)(b) | 600,000 | 650,715 |
| 4.25%, 08/18/25 | 350,000 | 388,050 |
| 2.63%, 11/07/25 (a)(b) | 400,000 | 420,408 |
| 1.65%, 04/18/26 (a)(b) | 625,000 | 630,431 |
| 2.10%, 06/04/26 (a)(b) | 350,000 | 359,264 |
| HSBC USA, Inc. |
| 3.50%, 06/23/24 | 100,000 | 109,771 |
| Huntington Bancshares, Inc. |
| 2.30%, 01/14/22 (a) | 250,000 | 256,194 |
| 2.63%, 08/06/24 (a) | 100,000 | 107,242 |
| ING Groep N.V. |
| 3.15%, 03/29/22 | 250,000 | 260,451 |
| 4.10%, 10/02/23 | 200,000 | 220,468 |
| 3.55%, 04/09/24 | 200,000 | 219,284 |
| JPMorgan Chase & Co. |
| 2.40%, 06/07/21 (a) | 150,000 | 152,165 |
| 4.35%, 08/15/21 | 350,000 | 363,664 |
| 4.50%, 01/24/22 | 450,000 | 475,825 |
| 3.51%, 06/18/22 (a)(b) | 200,000 | 205,059 |
| 3.25%, 09/23/22 | 850,000 | 900,073 |
| 2.97%, 01/15/23 (a) | 500,000 | 517,387 |
| 3.20%, 01/25/23 | 550,000 | 586,127 |
| 3.21%, 04/01/23 (a)(b) | 600,000 | 625,899 |
| 2.78%, 04/25/23 (a)(b) | 250,000 | 259,401 |
| 3.38%, 05/01/23 | 400,000 | 428,590 |
| 2.70%, 05/18/23 (a) | 500,000 | 528,507 |
| 3.88%, 02/01/24 | 250,000 | 277,160 |
| 3.56%, 04/23/24 (a)(b) | 250,000 | 268,839 |
| 3.63%, 05/13/24 | 200,000 | 221,366 |
| 1.51%, 06/01/24 (a)(b) | 400,000 | 410,210 |
| 3.80%, 07/23/24 (a)(b) | 350,000 | 380,653 |
| 3.88%, 09/10/24 | 600,000 | 669,090 |
| 4.02%, 12/05/24 (a)(b) | 550,000 | 607,527 |
| 3.13%, 01/23/25 (a) | 550,000 | 600,957 |
| 3.22%, 03/01/25 (a)(b) | 300,000 | 324,414 |
| 3.90%, 07/15/25 (a) | 500,000 | 569,035 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 2.30%, 10/15/25 (a)(b) | 750,000 | 792,191 |
| 2.01%, 03/13/26 (a)(b) | 550,000 | 575,311 |
| 2.08%, 04/22/26 (a)(b) | 600,000 | 630,918 |
| KeyBank NA |
| 3.35%, 06/15/21 | 250,000 | 255,960 |
| 2.30%, 09/14/22 | 250,000 | 259,245 |
| 3.38%, 03/07/23 | 250,000 | 267,856 |
| 1.25%, 03/10/23 | 250,000 | 254,855 |
| Lloyds Banking Group PLC |
| 3.10%, 07/06/21 | 300,000 | 306,965 |
| 3.00%, 01/11/22 | 200,000 | 206,741 |
| 2.86%, 03/17/23 (a)(b) | 200,000 | 206,636 |
| 1.33%, 06/15/23 (a)(b) | 400,000 | 404,010 |
| 4.05%, 08/16/23 | 400,000 | 437,586 |
| 2.91%, 11/07/23 (a)(b) | 500,000 | 523,292 |
| 3.90%, 03/12/24 | 200,000 | 220,119 |
| 4.50%, 11/04/24 | 200,000 | 221,092 |
| 3.87%, 07/09/25 (a)(b) | 500,000 | 550,435 |
| 2.44%, 02/05/26 (a)(b) | 400,000 | 420,694 |
| M&T Bank Corp. |
| 3.55%, 07/26/23 (a) | 250,000 | 272,575 |
| Mitsubishi UFJ Financial Group, Inc. |
| 3.54%, 07/26/21 | 100,000 | 102,872 |
| 2.19%, 09/13/21 | 200,000 | 203,692 |
| 3.00%, 02/22/22 | 250,000 | 259,343 |
| 3.22%, 03/07/22 | 200,000 | 208,365 |
| 2.62%, 07/18/22 | 250,000 | 259,779 |
| 2.67%, 07/25/22 | 500,000 | 520,090 |
| 3.46%, 03/02/23 | 150,000 | 160,417 |
| 3.76%, 07/26/23 | 450,000 | 490,453 |
| 3.41%, 03/07/24 | 650,000 | 707,788 |
| 2.80%, 07/18/24 | 200,000 | 214,662 |
| 2.19%, 02/25/25 | 550,000 | 579,012 |
| 1.41%, 07/17/25 | 400,000 | 408,108 |
| Mizuho Financial Group, Inc. |
| 2.27%, 09/13/21 | 200,000 | 203,858 |
| 2.60%, 09/11/22 | 200,000 | 208,352 |
| 3.55%, 03/05/23 | 300,000 | 321,475 |
| 2.72%, 07/16/23 (a)(b) | 200,000 | 207,567 |
| 1.24%, 07/10/24 (a)(b) | 250,000 | 253,158 |
| 3.92%, 09/11/24 (a)(b) | 200,000 | 217,507 |
| 2.84%, 07/16/25 (a)(b) | 200,000 | 212,982 |
| 2.23%, 05/25/26 (a)(b) | 250,000 | 261,360 |
| Morgan Stanley |
| 5.50%, 07/28/21 | 300,000 | 313,915 |
| 2.63%, 11/17/21 | 500,000 | 513,395 |
| 2.75%, 05/19/22 | 850,000 | 883,107 |
| 4.88%, 11/01/22 | 400,000 | 435,354 |
| 3.13%, 01/23/23 | 500,000 | 530,385 |
| 3.75%, 02/25/23 | 500,000 | 539,952 |
| 4.10%, 05/22/23 | 300,000 | 326,821 |
| 3.74%, 04/24/24 (a)(b) | 700,000 | 757,214 |
| 3.88%, 04/29/24 | 450,000 | 500,661 |
| 3.70%, 10/23/24 | 650,000 | 726,479 |
| 2.72%, 07/22/25 (a)(b) | 250,000 | 267,699 |
| 4.00%, 07/23/25 | 750,000 | 859,819 |
| 2.19%, 04/28/26 (a)(b) | 500,000 | 527,427 |
| MUFG Union Bank NA |
| 3.15%, 04/01/22 (a) | 250,000 | 260,793 |
| National Australia Bank Ltd. |
| 1.88%, 07/12/21 | 250,000 | 253,391 |
| 3.70%, 11/04/21 | 250,000 | 259,909 |
| 2.50%, 05/22/22 | 250,000 | 259,369 |
| 2.88%, 04/12/23 | 300,000 | 318,666 |
| 3.63%, 06/20/23 | 250,000 | 271,955 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| National Bank of Canada |
| 2.10%, 02/01/23 | 250,000 | 259,026 |
| 0.90%, 08/15/23 (a)(b) | 250,000 | 251,553 |
| Natwest Group PLC |
| 6.13%, 12/15/22 | 400,000 | 439,030 |
| 3.50%, 05/15/23 (a)(b) | 400,000 | 417,476 |
| 6.10%, 06/10/23 | 350,000 | 388,871 |
| 3.88%, 09/12/23 | 400,000 | 434,116 |
| 6.00%, 12/19/23 | 400,000 | 451,030 |
| 2.36%, 05/22/24 (a)(b) | 200,000 | 207,175 |
| 5.13%, 05/28/24 | 400,000 | 442,370 |
| 4.52%, 06/25/24 (a)(b) | 200,000 | 218,257 |
| 4.27%, 03/22/25 (a)(b) | 600,000 | 659,523 |
| 3.75%, 11/01/29 (a)(b) | 200,000 | 210,903 |
| Northern Trust Corp. |
| 3.38%, 08/23/21 | 150,000 | 154,658 |
| People's United Financial, Inc. |
| 3.65%, 12/06/22 (a) | 100,000 | 106,211 |
| PNC Bank NA |
| 2.63%, 02/17/22 (a) | 300,000 | 309,517 |
| 2.45%, 07/28/22 (a) | 250,000 | 259,798 |
| 2.70%, 11/01/22 (a) | 250,000 | 261,675 |
| 2.03%, 12/09/22 (a)(b) | 300,000 | 306,246 |
| 2.95%, 01/30/23 (a) | 250,000 | 263,906 |
| 3.50%, 06/08/23 (a) | 250,000 | 270,325 |
| 2.95%, 02/23/25 (a) | 250,000 | 274,975 |
| Regions Financial Corp. |
| 2.75%, 08/14/22 (a) | 250,000 | 260,554 |
| 3.80%, 08/14/23 (a) | 150,000 | 163,736 |
| 2.25%, 05/18/25 (a) | 200,000 | 212,592 |
| Royal Bank of Canada |
| 2.75%, 02/01/22 | 500,000 | 517,632 |
| 2.80%, 04/29/22 | 250,000 | 260,148 |
| 1.95%, 01/17/23 | 200,000 | 207,340 |
| 3.70%, 10/05/23 | 325,000 | 356,962 |
| 2.55%, 07/16/24 | 250,000 | 268,890 |
| 2.25%, 11/01/24 | 200,000 | 213,054 |
| 1.15%, 06/10/25 | 300,000 | 305,738 |
| Santander Holdings USA, Inc. |
| 3.70%, 03/28/22 (a) | 261,000 | 271,321 |
| 3.40%, 01/18/23 (a) | 100,000 | 104,943 |
| 3.50%, 06/07/24 (a) | 100,000 | 107,607 |
| 3.45%, 06/02/25 (a) | 100,000 | 107,874 |
| 4.50%, 07/17/25 (a) | 500,000 | 555,962 |
| Santander UK Group Holdings PLC |
| 2.88%, 08/05/21 | 200,000 | 204,552 |
| 3.57%, 01/10/23 (a) | 200,000 | 207,090 |
| 3.37%, 01/05/24 (a)(b) | 250,000 | 262,789 |
| 4.80%, 11/15/24 (a)(b) | 200,000 | 222,525 |
| 1.53%, 08/21/26 (a)(b) | 400,000 | 400,606 |
| Santander UK PLC |
| 2.10%, 01/13/23 | 400,000 | 414,300 |
| 4.00%, 03/13/24 | 200,000 | 222,366 |
| 2.88%, 06/18/24 | 200,000 | 216,481 |
| Skandinaviska Enskilda Banken AB |
| 1.88%, 09/13/21 | 250,000 | 254,293 |
| State Street Corp. |
| 3.10%, 05/15/23 | 250,000 | 267,896 |
| 3.70%, 11/20/23 | 350,000 | 386,995 |
| 3.78%, 12/03/24 (a)(b) | 100,000 | 110,290 |
| 3.30%, 12/16/24 | 200,000 | 223,540 |
| 2.35%, 11/01/25 (a)(b) | 450,000 | 480,346 |
| 2.90%, 03/30/26 (a)(b)(c) | 150,000 | 164,088 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Sumitomo Mitsui Banking Corp. |
| 3.95%, 07/19/23 | 250,000 | 273,750 |
| 3.40%, 07/11/24 | 250,000 | 274,045 |
| Sumitomo Mitsui Financial Group, Inc. |
| 2.06%, 07/14/21 | 150,000 | 152,270 |
| 2.44%, 10/19/21 | 500,000 | 511,247 |
| 2.78%, 07/12/22 | 450,000 | 468,927 |
| 2.78%, 10/18/22 | 150,000 | 157,155 |
| 3.10%, 01/17/23 | 250,000 | 265,385 |
| 3.75%, 07/19/23 | 200,000 | 217,915 |
| 2.70%, 07/16/24 | 400,000 | 428,074 |
| 2.45%, 09/27/24 | 200,000 | 212,876 |
| 2.35%, 01/15/25 | 400,000 | 424,616 |
| 1.47%, 07/08/25 | 300,000 | 307,246 |
| SVB Financial Group |
| 3.50%, 01/29/25 | 100,000 | 107,983 |
| Svenska Handelsbanken AB |
| 1.88%, 09/07/21 | 250,000 | 254,075 |
| 3.90%, 11/20/23 | 500,000 | 554,645 |
| Synchrony Bank |
| 3.00%, 06/15/22 (a) | 250,000 | 258,515 |
| Synchrony Financial |
| 3.75%, 08/15/21 (a) | 100,000 | 102,205 |
| 2.85%, 07/25/22 (a) | 600,000 | 621,480 |
| 4.38%, 03/19/24 (a) | 75,000 | 80,834 |
| 4.25%, 08/15/24 (a) | 150,000 | 161,729 |
| 4.50%, 07/23/25 (a) | 250,000 | 273,201 |
| The Bank of New York Mellon Corp. |
| 2.60%, 02/07/22 (a) | 250,000 | 257,821 |
| 1.95%, 08/23/22 | 200,000 | 206,661 |
| 1.85%, 01/27/23 (a) | 100,000 | 103,490 |
| 2.95%, 01/29/23 (a) | 150,000 | 158,946 |
| 3.50%, 04/28/23 | 150,000 | 162,972 |
| 2.66%, 05/16/23 (a)(b) | 200,000 | 207,535 |
| 3.45%, 08/11/23 | 250,000 | 272,925 |
| 2.20%, 08/16/23 (a) | 350,000 | 367,325 |
| 3.65%, 02/04/24 (a) | 150,000 | 165,650 |
| 3.25%, 09/11/24 (a) | 100,000 | 110,515 |
| 2.10%, 10/24/24 | 400,000 | 426,666 |
| 3.00%, 02/24/25 (a) | 200,000 | 221,216 |
| 1.60%, 04/24/25 (a) | 200,000 | 208,786 |
| The Bank of Nova Scotia |
| 2.80%, 07/21/21 | 150,000 | 153,446 |
| 2.70%, 03/07/22 | 500,000 | 518,510 |
| 2.38%, 01/18/23 | 150,000 | 156,769 |
| 1.95%, 02/01/23 | 300,000 | 310,903 |
| 1.63%, 05/01/23 | 300,000 | 308,931 |
| 3.40%, 02/11/24 | 250,000 | 273,413 |
| 2.20%, 02/03/25 | 200,000 | 212,621 |
| 1.30%, 06/11/25 | 200,000 | 204,769 |
| The Goldman Sachs Group, Inc. |
| 5.25%, 07/27/21 | 650,000 | 678,886 |
| 2.35%, 11/15/21 (a) | 350,000 | 351,393 |
| 5.75%, 01/24/22 | 905,000 | 971,617 |
| 3.00%, 04/26/22 (a) | 650,000 | 660,601 |
| 2.88%, 10/31/22 (a)(b) | 500,000 | 513,110 |
| 3.63%, 01/22/23 | 750,000 | 805,335 |
| 3.20%, 02/23/23 (a) | 250,000 | 266,171 |
| 2.91%, 06/05/23 (a)(b) | 300,000 | 311,784 |
| 2.91%, 07/24/23 (a)(b) | 300,000 | 312,958 |
| 3.63%, 02/20/24 (a) | 350,000 | 382,424 |
| 4.00%, 03/03/24 | 600,000 | 664,806 |
| 3.85%, 07/08/24 (a) | 450,000 | 497,623 |
| 3.50%, 01/23/25 (a) | 325,000 | 357,833 |
| 3.50%, 04/01/25 (a) | 600,000 | 665,550 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.75%, 05/22/25 (a) | 500,000 | 560,562 |
| 3.27%, 09/29/25 (a)(b) | 550,000 | 599,387 |
| The Huntington National Bank |
| 2.50%, 08/07/22 (a) | 250,000 | 259,758 |
| 3.55%, 10/06/23 (a) | 250,000 | 272,945 |
| The PNC Financial Services Group, Inc. |
| 3.30%, 03/08/22 (a) | 200,000 | 208,491 |
| 2.85%, 11/09/22 | 250,000 | 263,214 |
| 3.50%, 01/23/24 (a) | 200,000 | 219,363 |
| 3.90%, 04/29/24 (a) | 100,000 | 111,097 |
| 2.20%, 11/01/24 (a) | 200,000 | 213,137 |
| The Toronto-Dominion Bank |
| 3.25%, 06/11/21 | 250,000 | 255,938 |
| 1.80%, 07/13/21 | 150,000 | 152,062 |
| 1.90%, 12/01/22 | 250,000 | 258,629 |
| 0.75%, 06/12/23 | 350,000 | 354,090 |
| 3.50%, 07/19/23 | 400,000 | 436,836 |
| 3.25%, 03/11/24 | 150,000 | 163,991 |
| 2.65%, 06/12/24 | 300,000 | 323,032 |
| 1.15%, 06/12/25 | 250,000 | 255,813 |
| Truist Bank |
| 2.63%, 01/15/22 (a) | 200,000 | 205,958 |
| 2.80%, 05/17/22 (a) | 200,000 | 208,175 |
| 1.25%, 03/09/23 (a) | 400,000 | 408,098 |
| 3.20%, 04/01/24 (a) | 200,000 | 218,681 |
| 3.69%, 08/02/24 (a)(b) | 100,000 | 108,895 |
| 2.15%, 12/06/24 (a) | 250,000 | 265,574 |
| 1.50%, 03/10/25 (a) | 250,000 | 259,104 |
| 2.64%, 09/17/29 (a)(b) | 250,000 | 258,701 |
| Truist Financial Corp. |
| 3.20%, 09/03/21 (a) | 250,000 | 256,720 |
| 2.70%, 01/27/22 (a) | 250,000 | 257,769 |
| 3.95%, 03/22/22 (a) | 350,000 | 367,598 |
| 3.05%, 06/20/22 (a) | 400,000 | 418,046 |
| 2.20%, 03/16/23 (a) | 150,000 | 156,662 |
| 3.75%, 12/06/23 (a) | 200,000 | 220,473 |
| 2.50%, 08/01/24 (a) | 200,000 | 213,847 |
| 2.85%, 10/26/24 (a) | 150,000 | 164,075 |
| 4.00%, 05/01/25 (a) | 500,000 | 571,575 |
| US Bancorp |
| 2.63%, 01/24/22 (a) | 150,000 | 154,577 |
| 3.00%, 03/15/22 (a) | 150,000 | 156,078 |
| 2.95%, 07/15/22 (a) | 150,000 | 157,079 |
| 3.70%, 01/30/24 (a) | 400,000 | 442,632 |
| 3.38%, 02/05/24 (a) | 250,000 | 273,610 |
| 2.40%, 07/30/24 (a) | 350,000 | 374,519 |
| 3.60%, 09/11/24 (a) | 100,000 | 111,357 |
| 1.45%, 05/12/25 (a) | 200,000 | 207,790 |
| US Bank NA |
| 2.80%, 01/27/25 (a) | 250,000 | 274,050 |
| US Bank NA/Cincinnati OH |
| 3.45%, 11/16/21 (a) | 250,000 | 258,945 |
| 1.80%, 01/21/22 (a) | 250,000 | 255,598 |
| 1.95%, 01/09/23 (a) | 250,000 | 259,168 |
| 3.40%, 07/24/23 (a) | 250,000 | 271,810 |
| 2.05%, 01/21/25 (a) | 250,000 | 265,244 |
| Wells Fargo & Co. |
| 2.10%, 07/26/21 | 428,000 | 434,842 |
| 3.50%, 03/08/22 | 400,000 | 418,418 |
| 2.63%, 07/22/22 | 900,000 | 936,103 |
| 3.07%, 01/24/23 (a) | 750,000 | 776,317 |
| 3.45%, 02/13/23 | 500,000 | 531,772 |
| 4.13%, 08/15/23 | 200,000 | 218,961 |
| 4.48%, 01/16/24 | 100,000 | 111,584 |
| 3.75%, 01/24/24 (a) | 400,000 | 437,396 |
| 1.65%, 06/02/24 (a)(b) | 600,000 | 613,857 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.30%, 09/09/24 | 300,000 | 329,436 |
| 3.00%, 02/19/25 | 350,000 | 380,359 |
| 2.41%, 10/30/25 (a)(b) | 550,000 | 579,865 |
| 2.16%, 02/11/26 (a)(b) | 400,000 | 417,622 |
| 2.19%, 04/30/26 (a)(b) | 950,000 | 994,954 |
| Wells Fargo Bank NA |
| 3.63%, 10/22/21 (a) | 500,000 | 517,350 |
| 2.08%, 09/09/22 (a)(b) | 500,000 | 507,907 |
| 3.55%, 08/14/23 (a) | 550,000 | 597,833 |
| Westpac Banking Corp. |
| 2.00%, 08/19/21 | 150,000 | 152,536 |
| 2.50%, 06/28/22 | 200,000 | 207,929 |
| 2.75%, 01/11/23 | 500,000 | 527,162 |
| 3.65%, 05/15/23 | 500,000 | 542,670 |
| 3.30%, 02/26/24 | 150,000 | 163,538 |
| 2.35%, 02/19/25 | 200,000 | 214,085 |
| 2.89%, 02/04/30 (a)(b) | 200,000 | 207,209 |
| | | 146,095,577 |
| Brokerage/Asset Managers/Exchanges 0.3% |
| Affiliated Managers Group, Inc. |
| 4.25%, 02/15/24 | 100,000 | 110,362 |
| Ameriprise Financial, Inc. |
| 3.00%, 03/22/22 | 100,000 | 103,971 |
| 4.00%, 10/15/23 | 150,000 | 166,734 |
| 3.00%, 04/02/25 (a) | 100,000 | 109,695 |
| BGC Partners, Inc. |
| 3.75%, 10/01/24 (a) | 100,000 | 100,141 |
| 4.38%, 12/15/25 (a)(c) | 150,000 | 151,702 |
| BlackRock, Inc. |
| 3.38%, 06/01/22 | 250,000 | 263,095 |
| 3.50%, 03/18/24 | 100,000 | 110,578 |
| Brookfield Asset Management, Inc. |
| 4.00%, 01/15/25 (a) | 100,000 | 111,924 |
| Brookfield Finance, Inc. |
| 4.00%, 04/01/24 (a) | 100,000 | 110,497 |
| Charles Schwab Corp. |
| 2.65%, 01/25/23 (a)(d) | 75,000 | 79,061 |
| 3.55%, 02/01/24 (a)(d) | 100,000 | 109,804 |
| 4.20%, 03/24/25 (a)(d) | 200,000 | 232,365 |
| 3.85%, 05/21/25 (a)(d) | 150,000 | 171,406 |
| CME Group, Inc. |
| 3.00%, 03/15/25 (a) | 400,000 | 439,132 |
| E*TRADE Financial Corp. |
| 2.95%, 08/24/22 (a) | 100,000 | 104,538 |
| Eaton Vance Corp. |
| 3.63%, 06/15/23 | 100,000 | 107,144 |
| Franklin Resources, Inc. |
| 2.85%, 03/30/25 | 100,000 | 109,704 |
| Intercontinental Exchange, Inc. |
| 2.35%, 09/15/22 (a) | 100,000 | 103,628 |
| 0.70%, 06/15/23 | 300,000 | 302,311 |
| 3.45%, 09/21/23 (a) | 200,000 | 217,047 |
| 4.00%, 10/15/23 | 100,000 | 110,557 |
| Invesco Finance PLC |
| 3.13%, 11/30/22 | 100,000 | 105,895 |
| 4.00%, 01/30/24 | 100,000 | 109,833 |
| Jefferies Financial Group, Inc. |
| 5.50%, 10/18/23 (a) | 100,000 | 110,378 |
| Jefferies Group LLC |
| 5.13%, 01/20/23 | 100,000 | 109,702 |
| Lazard Group LLC |
| 3.75%, 02/13/25 | 100,000 | 108,149 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Nasdaq, Inc. |
| 4.25%, 06/01/24 (a) | 50,000 | 55,997 |
| Nomura Holdings, Inc. |
| 2.65%, 01/16/25 | 200,000 | 210,986 |
| 1.85%, 07/16/25 | 400,000 | 408,368 |
| Stifel Financial Corp. |
| 4.25%, 07/18/24 | 100,000 | 110,651 |
| TD Ameritrade Holding Corp. |
| 2.95%, 04/01/22 (a) | 100,000 | 103,778 |
| 3.63%, 04/01/25 (a) | 150,000 | 168,864 |
| | | 5,027,997 |
| Finance Companies 0.4% |
| AerCap Ireland Capital DAC/AerCap Global Aviation Trust |
| 5.00%, 10/01/21 | 150,000 | 154,603 |
| 3.95%, 02/01/22 (a) | 500,000 | 506,710 |
| 3.50%, 05/26/22 (a) | 250,000 | 252,246 |
| 3.30%, 01/23/23 (a) | 150,000 | 150,093 |
| 4.13%, 07/03/23 (a) | 200,000 | 203,215 |
| 4.50%, 09/15/23 (a) | 250,000 | 257,645 |
| 4.88%, 01/16/24 (a) | 150,000 | 154,600 |
| 2.88%, 08/14/24 (a) | 150,000 | 144,256 |
| 3.50%, 01/15/25 (a) | 150,000 | 145,827 |
| 6.50%, 07/15/25 (a) | 350,000 | 380,382 |
| Air Lease Corp. |
| 2.63%, 07/01/22 (a) | 155,000 | 156,292 |
| 2.25%, 01/15/23 | 100,000 | 100,596 |
| 2.75%, 01/15/23 (a) | 350,000 | 353,734 |
| 3.00%, 09/15/23 (a) | 100,000 | 101,297 |
| 4.25%, 02/01/24 (a) | 100,000 | 104,692 |
| 4.25%, 09/15/24 (a) | 100,000 | 104,374 |
| 2.30%, 02/01/25 (a) | 200,000 | 195,647 |
| 3.25%, 03/01/25 (a) | 200,000 | 203,677 |
| 3.38%, 07/01/25 (a) | 125,000 | 127,474 |
| 2.88%, 01/15/26 (a) | 100,000 | 99,119 |
| Aircastle Ltd. |
| 4.40%, 09/25/23 (a) | 150,000 | 148,631 |
| 4.13%, 05/01/24 (a) | 300,000 | 291,226 |
| Ares Capital Corp. |
| 3.50%, 02/10/23 (a) | 75,000 | 77,080 |
| 4.20%, 06/10/24 (a) | 150,000 | 155,578 |
| 4.25%, 03/01/25 (a) | 100,000 | 103,452 |
| 3.25%, 07/15/25 (a) | 300,000 | 300,331 |
| FS KKR Capital Corp. |
| 4.75%, 05/15/22 (a) | 100,000 | 102,254 |
| 4.63%, 07/15/24 (a) | 100,000 | 100,565 |
| 4.13%, 02/01/25 (a) | 50,000 | 49,705 |
| GATX Corp. |
| 4.85%, 06/01/21 | 100,000 | 103,163 |
| 4.35%, 02/15/24 (a) | 100,000 | 110,546 |
| GE Capital Funding LLC |
| 3.45%, 05/15/25 (a)(c) | 400,000 | 424,448 |
| Goldman Sachs BDC, Inc. |
| 3.75%, 02/10/25 (a) | 50,000 | 52,587 |
| International Lease Finance Corp. |
| 5.88%, 08/15/22 | 90,000 | 97,573 |
| Main Street Capital Corp. |
| 5.20%, 05/01/24 | 50,000 | 52,049 |
| Oaktree Specialty Lending Corp. |
| 3.50%, 02/25/25 (a) | 50,000 | 50,456 |
| Owl Rock Capital Corp. |
| 5.25%, 04/15/24 (a) | 250,000 | 266,177 |
| 4.00%, 03/30/25 (a) | 50,000 | 50,555 |
| | | 6,432,855 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Financial Other 0.1% |
| Blackstone/GSO Secured Lending Fund |
| 3.65%, 07/14/23 (c) | 200,000 | 201,838 |
| CME Group, Inc. |
| 3.00%, 09/15/22 | 250,000 | 263,630 |
| ORIX Corp. |
| 2.90%, 07/18/22 | 80,000 | 83,189 |
| 4.05%, 01/16/24 | 150,000 | 164,820 |
| | | 713,477 |
| Insurance 0.8% |
| Aetna, Inc. |
| 2.75%, 11/15/22 (a) | 300,000 | 313,212 |
| 2.80%, 06/15/23 (a) | 100,000 | 105,779 |
| 3.50%, 11/15/24 (a) | 150,000 | 165,420 |
| Aflac, Inc. |
| 3.63%, 06/15/23 | 150,000 | 163,359 |
| 3.63%, 11/15/24 | 150,000 | 169,408 |
| American International Group, Inc. |
| 4.88%, 06/01/22 | 200,000 | 215,254 |
| 4.13%, 02/15/24 | 400,000 | 446,104 |
| 2.50%, 06/30/25 (a) | 150,000 | 160,680 |
| 3.75%, 07/10/25 (a) | 500,000 | 562,550 |
| Anthem, Inc. |
| 3.70%, 08/15/21 (a) | 200,000 | 204,747 |
| 3.13%, 05/15/22 | 300,000 | 313,720 |
| 3.30%, 01/15/23 | 200,000 | 213,511 |
| 3.50%, 08/15/24 (a) | 100,000 | 110,157 |
| 3.35%, 12/01/24 (a) | 100,000 | 110,627 |
| 2.38%, 01/15/25 (a) | 200,000 | 213,581 |
| Aon PLC |
| 4.00%, 11/27/23 (a) | 100,000 | 109,691 |
| 3.50%, 06/14/24 (a) | 150,000 | 164,938 |
| Aspen Insurance Holdings Ltd. |
| 4.65%, 11/15/23 | 100,000 | 109,135 |
| Assured Guaranty US Holdings, Inc. |
| 5.00%, 07/01/24 | 300,000 | 338,470 |
| Berkshire Hathaway Finance Corp. |
| 3.00%, 05/15/22 | 350,000 | 366,054 |
| Berkshire Hathaway, Inc. |
| 3.75%, 08/15/21 | 150,000 | 155,123 |
| 3.00%, 02/11/23 | 100,000 | 106,623 |
| 2.75%, 03/15/23 (a) | 350,000 | 370,001 |
| Brown & Brown, Inc. |
| 4.20%, 09/15/24 (a) | 100,000 | 110,923 |
| Chubb INA Holdings, Inc. |
| 2.88%, 11/03/22 (a) | 100,000 | 104,825 |
| 2.70%, 03/13/23 | 150,000 | 158,518 |
| 3.35%, 05/15/24 | 100,000 | 110,270 |
| 3.15%, 03/15/25 | 650,000 | 724,727 |
| CNA Financial Corp. |
| 3.95%, 05/15/24 (a) | 100,000 | 110,756 |
| Equitable Holdings, Inc. |
| 3.90%, 04/20/23 (a) | 100,000 | 107,778 |
| Fidelity National Financial, Inc. |
| 5.50%, 09/01/22 | 100,000 | 109,064 |
| Globe Life, Inc. |
| 3.80%, 09/15/22 | 100,000 | 106,643 |
| Humana, Inc. |
| 2.90%, 12/15/22 (a) | 50,000 | 52,574 |
| 3.85%, 10/01/24 (a) | 100,000 | 110,885 |
| 4.50%, 04/01/25 (a) | 250,000 | 289,064 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Lincoln National Corp. |
| 4.00%, 09/01/23 | 150,000 | 164,397 |
| Loews Corp. |
| 2.63%, 05/15/23 (a) | 150,000 | 158,168 |
| Markel Corp. |
| 4.90%, 07/01/22 | 100,000 | 107,457 |
| Marsh & McLennan Cos., Inc. |
| 4.80%, 07/15/21 (a) | 150,000 | 154,157 |
| 3.30%, 03/14/23 (a) | 100,000 | 106,381 |
| 3.88%, 03/15/24 (a) | 250,000 | 277,464 |
| 3.50%, 06/03/24 (a) | 100,000 | 109,949 |
| 3.50%, 03/10/25 (a) | 150,000 | 166,673 |
| MetLife, Inc. |
| 3.05%, 12/15/22 | 150,000 | 159,325 |
| 4.37%, 09/15/23 | 300,000 | 335,388 |
| 3.60%, 04/10/24 | 150,000 | 166,950 |
| Principal Financial Group, Inc. |
| 3.30%, 09/15/22 | 100,000 | 105,409 |
| Prudential Financial, Inc. |
| 3.50%, 05/15/24 | 250,000 | 278,249 |
| 5.88%, 09/15/42 (a)(b) | 100,000 | 106,884 |
| 5.63%, 06/15/43 (a)(b) | 150,000 | 161,306 |
| 5.20%, 03/15/44 (a)(b) | 100,000 | 106,258 |
| 5.38%, 05/15/45 (a)(b) | 200,000 | 219,272 |
| Reinsurance Group of America, Inc. |
| 4.70%, 09/15/23 | 100,000 | 111,303 |
| The Allstate Corp. |
| 3.15%, 06/15/23 | 250,000 | 269,472 |
| 5.75%, 08/15/53 (a)(b) | 75,000 | 80,709 |
| The Progressive Corp. |
| 3.75%, 08/23/21 | 100,000 | 103,417 |
| UnitedHealth Group, Inc. |
| 2.88%, 12/15/21 | 150,000 | 155,101 |
| 3.35%, 07/15/22 | 300,000 | 317,053 |
| 2.38%, 10/15/22 | 100,000 | 104,379 |
| 2.75%, 02/15/23 (a) | 250,000 | 263,204 |
| 2.88%, 03/15/23 | 300,000 | 318,633 |
| 3.50%, 06/15/23 | 100,000 | 108,634 |
| 3.50%, 02/15/24 | 297,000 | 327,395 |
| 2.38%, 08/15/24 | 100,000 | 107,110 |
| 3.75%, 07/15/25 | 500,000 | 572,242 |
| Unum Group |
| 4.00%, 03/15/24 | 70,000 | 75,833 |
| 4.50%, 03/15/25 (a) | 150,000 | 167,067 |
| Voya Financial, Inc. |
| 5.65%, 05/15/53 (a)(b) | 300,000 | 314,593 |
| W R Berkley Corp. |
| 4.63%, 03/15/22 | 100,000 | 105,830 |
| Willis North America, Inc. |
| 3.60%, 05/15/24 (a) | 100,000 | 109,598 |
| XLIT Ltd. |
| 4.45%, 03/31/25 | 100,000 | 112,735 |
| | | 13,892,166 |
| REITs 0.6% |
| Alexandria Real Estate Equities, Inc. |
| 4.00%, 01/15/24 (a) | 200,000 | 221,152 |
| 3.45%, 04/30/25 (a) | 200,000 | 223,085 |
| American Campus Communities Operating Partnership LP |
| 3.75%, 04/15/23 (a) | 100,000 | 104,977 |
| 4.13%, 07/01/24 (a) | 150,000 | 162,457 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| AvalonBay Communities, Inc. |
| 2.95%, 09/15/22 (a) | 100,000 | 104,356 |
| 3.50%, 11/15/24 (a) | 100,000 | 110,843 |
| 3.45%, 06/01/25 (a) | 200,000 | 224,470 |
| Boston Properties LP |
| 3.85%, 02/01/23 (a) | 250,000 | 267,211 |
| 3.13%, 09/01/23 (a) | 200,000 | 212,094 |
| 3.80%, 02/01/24 (a) | 150,000 | 163,235 |
| Brixmor Operating Partnership LP |
| 3.25%, 09/15/23 (a) | 100,000 | 103,850 |
| 3.65%, 06/15/24 (a) | 100,000 | 105,012 |
| 3.85%, 02/01/25 (a) | 100,000 | 106,101 |
| Corporate Office Properties LP |
| 3.70%, 06/15/21 (a) | 100,000 | 101,271 |
| 3.60%, 05/15/23 (a) | 200,000 | 207,224 |
| CyrusOne LP/CyrusOne Finance Corp. |
| 2.90%, 11/15/24 (a) | 100,000 | 106,847 |
| Digital Realty Trust LP |
| 2.75%, 02/01/23 (a) | 200,000 | 209,807 |
| EPR Properties |
| 4.50%, 04/01/25 (a) | 200,000 | 193,737 |
| ERP Operating LP |
| 4.63%, 12/15/21 (a) | 200,000 | 208,604 |
| 3.00%, 04/15/23 (a) | 150,000 | 158,430 |
| Essex Portfolio LP |
| 3.63%, 08/15/22 (a) | 100,000 | 105,245 |
| 3.88%, 05/01/24 (a) | 100,000 | 109,795 |
| Federal Realty Investment Trust |
| 3.95%, 01/15/24 (a) | 75,000 | 81,531 |
| Healthpeak Properties, Inc. |
| 4.25%, 11/15/23 (a) | 100,000 | 109,817 |
| 4.20%, 03/01/24 (a) | 300,000 | 330,754 |
| 3.88%, 08/15/24 (a) | 200,000 | 223,168 |
| 3.40%, 02/01/25 (a) | 100,000 | 110,895 |
| Host Hotels & Resorts LP |
| 3.75%, 10/15/23 (a) | 150,000 | 155,824 |
| 3.88%, 04/01/24 (a) | 100,000 | 104,158 |
| 4.50%, 02/01/26 (a) | 100,000 | 107,198 |
| Kilroy Realty LP |
| 3.45%, 12/15/24 (a) | 100,000 | 105,839 |
| Kimco Realty Corp. |
| 3.40%, 11/01/22 (a) | 75,000 | 79,348 |
| 3.30%, 02/01/25 (a) | 200,000 | 215,794 |
| Mid-America Apartments LP |
| 4.30%, 10/15/23 (a) | 100,000 | 109,603 |
| National Retail Properties, Inc. |
| 3.90%, 06/15/24 (a) | 100,000 | 108,993 |
| Office Properties Income Trust |
| 4.00%, 07/15/22 (a) | 175,000 | 175,024 |
| 4.25%, 05/15/24 (a) | 100,000 | 102,173 |
| Omega Healthcare Investors, Inc. |
| 4.38%, 08/01/23 (a) | 200,000 | 214,895 |
| 4.50%, 01/15/25 (a) | 100,000 | 105,036 |
| Piedmont Operating Partnership LP |
| 3.40%, 06/01/23 (a) | 100,000 | 103,120 |
| Prologis LP |
| 4.25%, 08/15/23 (a) | 150,000 | 167,400 |
| Public Storage |
| 2.37%, 09/15/22 (a) | 100,000 | 104,000 |
| Realty Income Corp. |
| 3.25%, 10/15/22 (a) | 250,000 | 263,085 |
| 4.65%, 08/01/23 (a) | 350,000 | 389,317 |
| 3.88%, 04/15/25 (a) | 250,000 | 283,489 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Sabra Health Care LP |
| 4.80%, 06/01/24 (a) | 100,000 | 104,466 |
| Simon Property Group LP |
| 2.35%, 01/30/22 (a) | 150,000 | 153,061 |
| 2.75%, 02/01/23 (a) | 100,000 | 104,157 |
| 2.75%, 06/01/23 (a) | 250,000 | 261,979 |
| 3.75%, 02/01/24 (a) | 100,000 | 108,510 |
| 2.00%, 09/13/24 (a) | 100,000 | 103,510 |
| 3.38%, 10/01/24 (a) | 300,000 | 325,717 |
| 3.50%, 09/01/25 (a) | 150,000 | 165,136 |
| SITE Centers Corp. |
| 3.63%, 02/01/25 (a) | 50,000 | 51,293 |
| SL Green Operating Partnership LP |
| 3.25%, 10/15/22 (a) | 200,000 | 204,305 |
| Ventas Realty LP |
| 3.13%, 06/15/23 (a) | 150,000 | 156,681 |
| 3.50%, 04/15/24 (a) | 100,000 | 107,132 |
| 3.75%, 05/01/24 (a) | 100,000 | 107,173 |
| 3.50%, 02/01/25 (a) | 100,000 | 107,853 |
| Ventas Realty LP/Ventas Capital Corp. |
| 3.25%, 08/15/22 (a) | 200,000 | 207,584 |
| VEREIT Operating Partnership LP |
| 4.60%, 02/06/24 (a) | 100,000 | 107,749 |
| Vornado Realty LP |
| 3.50%, 01/15/25 (a) | 100,000 | 103,816 |
| Welltower, Inc. |
| 3.95%, 09/01/23 (a) | 150,000 | 162,502 |
| 4.50%, 01/15/24 (a) | 300,000 | 329,982 |
| 3.63%, 03/15/24 (a) | 250,000 | 271,179 |
| WP Carey, Inc. |
| 4.00%, 02/01/25 (a) | 150,000 | 163,927 |
| | | 10,667,976 |
| | | 182,830,048 |
| |
| Industrial 14.1% |
| Basic Industry 0.6% |
| Air Products & Chemicals, Inc. |
| 2.75%, 02/03/23 | 79,000 | 83,351 |
| 3.35%, 07/31/24 (a) | 100,000 | 109,897 |
| Albemarle Corp. |
| 4.15%, 12/01/24 (a) | 100,000 | 108,854 |
| BHP Billiton Finance (USA) Ltd. |
| 3.25%, 11/21/21 | 100,000 | 103,412 |
| 2.88%, 02/24/22 | 150,000 | 155,275 |
| 3.85%, 09/30/23 | 200,000 | 220,951 |
| Celanese US Holdings LLC |
| 5.88%, 06/15/21 | 100,000 | 103,878 |
| 3.50%, 05/08/24 (a) | 100,000 | 107,297 |
| Domtar Corp. |
| 4.40%, 04/01/22 (a) | 250,000 | 257,855 |
| DuPont de Nemours, Inc. |
| 2.17%, 05/01/23 | 650,000 | 663,211 |
| 4.21%, 11/15/23 (a) | 300,000 | 331,710 |
| Eastman Chemical Co. |
| 3.50%, 12/01/21 | 150,000 | 155,292 |
| 3.80%, 03/15/25 (a) | 200,000 | 221,681 |
| Ecolab, Inc. |
| 4.35%, 12/08/21 | 150,000 | 157,213 |
| 2.38%, 08/10/22 (a) | 100,000 | 103,790 |
| 3.25%, 01/14/23 (a) | 100,000 | 106,144 |
| EI du Pont de Nemours & Co. |
| 1.70%, 07/15/25 (a) | 100,000 | 104,175 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Fibria Overseas Finance Ltd |
| 5.25%, 05/12/24 | 100,000 | 109,229 |
| Fibria Overseas Finance Ltd. |
| 4.00%, 01/14/25 (a) | 200,000 | 210,648 |
| FMC Corp. |
| 4.10%, 02/01/24 (a) | 100,000 | 109,187 |
| Huntsman International LLC |
| 5.13%, 11/15/22 (a) | 200,000 | 215,018 |
| International Paper Co. |
| 3.65%, 06/15/24 (a) | 350,000 | 387,425 |
| Kinross Gold Corp. |
| 5.95%, 03/15/24 (a) | 350,000 | 401,765 |
| LYB International Finance BV |
| 4.00%, 07/15/23 | 450,000 | 490,329 |
| LyondellBasell Industries N.V. |
| 6.00%, 11/15/21 (a) | 200,000 | 210,355 |
| Newmont Corp. |
| 3.63%, 06/09/21 (a) | 100,000 | 101,913 |
| 3.50%, 03/15/22 (a) | 150,000 | 155,948 |
| 3.70%, 03/15/23 (a) | 27,000 | 28,678 |
| Nucor Corp. |
| 4.13%, 09/15/22 (a) | 50,000 | 53,374 |
| 4.00%, 08/01/23 (a) | 100,000 | 109,257 |
| 2.00%, 06/01/25 (a) | 200,000 | 209,995 |
| Nutrien Ltd. |
| 3.15%, 10/01/22 (a) | 200,000 | 209,528 |
| 1.90%, 05/13/23 | 200,000 | 206,992 |
| 3.50%, 06/01/23 (a) | 250,000 | 267,604 |
| 3.38%, 03/15/25 (a) | 100,000 | 110,789 |
| 3.00%, 04/01/25 (a) | 100,000 | 108,701 |
| Packaging Corp. of America |
| 4.50%, 11/01/23 (a) | 100,000 | 110,856 |
| 3.65%, 09/15/24 (a) | 100,000 | 109,410 |
| PPG Industries, Inc. |
| 2.40%, 08/15/24 (a) | 100,000 | 106,590 |
| Praxair, Inc. |
| 2.45%, 02/15/22 (a) | 100,000 | 102,530 |
| 2.20%, 08/15/22 (a) | 100,000 | 103,160 |
| 2.70%, 02/21/23 (a) | 100,000 | 104,912 |
| 2.65%, 02/05/25 (a) | 200,000 | 216,638 |
| Rio Tinto Finance (USA) Ltd. |
| 3.75%, 06/15/25 (a) | 250,000 | 283,381 |
| RPM International, Inc. |
| 3.45%, 11/15/22 (a) | 100,000 | 104,226 |
| Steel Dynamics, Inc. |
| 2.80%, 12/15/24 (a) | 300,000 | 318,630 |
| 2.40%, 06/15/25 (a) | 100,000 | 105,291 |
| The Dow Chemical Co. |
| 3.15%, 05/15/24 (a) | 100,000 | 108,273 |
| 3.50%, 10/01/24 (a) | 200,000 | 219,412 |
| The Mosaic Co. |
| 3.75%, 11/15/21 (a) | 100,000 | 102,416 |
| 3.25%, 11/15/22 (a) | 250,000 | 261,294 |
| 4.25%, 11/15/23 (a) | 200,000 | 217,256 |
| The Sherwin-Williams Co. |
| 3.13%, 06/01/24 (a) | 100,000 | 108,873 |
| Weyerhaeuser Co. |
| 3.25%, 03/15/23 (a) | 100,000 | 106,935 |
| 4.63%, 09/15/23 | 100,000 | 111,333 |
| WRKCo, Inc. |
| 3.00%, 09/15/24 (a) | 100,000 | 107,913 |
| 3.75%, 03/15/25 (a) | 100,000 | 112,086 |
| | | 9,912,136 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Capital Goods 1.5% |
| 3M Co. |
| 2.75%, 03/01/22 (a) | 200,000 | 207,094 |
| 1.75%, 02/14/23 (a) | 100,000 | 103,379 |
| 2.25%, 03/15/23 (a) | 150,000 | 157,014 |
| 3.25%, 02/14/24 (a) | 350,000 | 382,202 |
| 2.00%, 02/14/25 (a) | 100,000 | 106,136 |
| 2.65%, 04/15/25 (a) | 100,000 | 108,909 |
| ABB Finance USA, Inc. |
| 2.88%, 05/08/22 | 300,000 | 312,219 |
| 3.38%, 04/03/23 (a) | 125,000 | 133,765 |
| Allegion US Holding Co., Inc. |
| 3.20%, 10/01/24 (a) | 100,000 | 106,409 |
| Amphenol Corp. |
| 3.20%, 04/01/24 (a) | 100,000 | 108,183 |
| Carlisle Cos., Inc. |
| 3.50%, 12/01/24 (a) | 100,000 | 109,466 |
| Carrier Global Corp. |
| 1.92%, 02/15/23 (a)(c) | 100,000 | 102,877 |
| 2.24%, 02/15/25 (a)(c) | 700,000 | 734,191 |
| Caterpillar Financial Services Corp. |
| 1.70%, 08/09/21 | 100,000 | 101,391 |
| 3.15%, 09/07/21 | 250,000 | 257,329 |
| 1.93%, 10/01/21 | 100,000 | 101,756 |
| 2.95%, 02/26/22 | 200,000 | 207,856 |
| 0.95%, 05/13/22 | 300,000 | 303,045 |
| 2.40%, 06/06/22 | 100,000 | 103,660 |
| 2.55%, 11/29/22 | 125,000 | 131,098 |
| 3.45%, 05/15/23 | 150,000 | 162,454 |
| 0.65%, 07/07/23 | 450,000 | 453,337 |
| 3.75%, 11/24/23 | 100,000 | 110,649 |
| 3.65%, 12/07/23 | 100,000 | 110,356 |
| 2.85%, 05/17/24 | 100,000 | 108,285 |
| 3.30%, 06/09/24 | 100,000 | 110,048 |
| 2.15%, 11/08/24 | 200,000 | 212,869 |
| 3.25%, 12/01/24 | 100,000 | 110,723 |
| 1.45%, 05/15/25 | 200,000 | 207,359 |
| Caterpillar, Inc. |
| 3.40%, 05/15/24 (a) | 100,000 | 109,884 |
| CNH Industrial Capital LLC |
| 4.38%, 04/05/22 | 100,000 | 105,092 |
| 1.95%, 07/02/23 | 250,000 | 254,132 |
| 4.20%, 01/15/24 | 50,000 | 54,165 |
| CNH Industrial N.V. |
| 4.50%, 08/15/23 | 100,000 | 107,585 |
| Deere & Co. |
| 2.60%, 06/08/22 (a) | 200,000 | 207,265 |
| 2.75%, 04/15/25 (a) | 250,000 | 273,630 |
| Eaton Corp. |
| 2.75%, 11/02/22 | 350,000 | 367,785 |
| Emerson Electric Co. |
| 2.63%, 12/01/21 (a) | 150,000 | 154,224 |
| 2.63%, 02/15/23 (a) | 200,000 | 210,731 |
| Flowserve Corp. |
| 3.50%, 09/15/22 (a) | 100,000 | 104,856 |
| Fortive Corp. |
| 2.35%, 06/15/21 (a) | 150,000 | 151,978 |
| Fortune Brands Home & Security, Inc. |
| 4.00%, 09/21/23 (a) | 350,000 | 385,213 |
| General Dynamics Corp. |
| 2.25%, 11/15/22 (a) | 200,000 | 207,563 |
| 3.38%, 05/15/23 (a) | 300,000 | 323,121 |
| 1.88%, 08/15/23 (a) | 200,000 | 208,336 |
| 3.25%, 04/01/25 (a) | 325,000 | 361,691 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| General Electric Co. |
| 3.15%, 09/07/22 | 500,000 | 524,770 |
| 3.10%, 01/09/23 | 150,000 | 158,298 |
| 3.45%, 05/15/24 (a) | 450,000 | 484,112 |
| Honeywell International, Inc. |
| 1.85%, 11/01/21 (a) | 350,000 | 356,046 |
| 2.15%, 08/08/22 (a) | 100,000 | 103,400 |
| 0.48%, 08/19/22 (a) | 350,000 | 350,721 |
| 3.35%, 12/01/23 | 50,000 | 54,721 |
| 2.30%, 08/15/24 (a) | 150,000 | 160,226 |
| 1.35%, 06/01/25 (a) | 300,000 | 309,430 |
| Howmet Aerospace, Inc. |
| 5.13%, 10/01/24 (a) | 250,000 | 268,762 |
| 6.88%, 05/01/25 (a) | 300,000 | 341,310 |
| Illinois Tool Works, Inc. |
| 3.50%, 03/01/24 (a) | 150,000 | 164,177 |
| John Deere Capital Corp. |
| 3.13%, 09/10/21 | 200,000 | 205,939 |
| 2.65%, 01/06/22 | 100,000 | 103,210 |
| 3.20%, 01/10/22 | 100,000 | 103,934 |
| 2.75%, 03/15/22 | 100,000 | 103,824 |
| 0.55%, 07/05/22 | 250,000 | 251,120 |
| 2.15%, 09/08/22 | 250,000 | 259,550 |
| 2.70%, 01/06/23 | 250,000 | 264,150 |
| 2.80%, 03/06/23 | 150,000 | 159,528 |
| 1.20%, 04/06/23 | 100,000 | 102,226 |
| 3.45%, 06/07/23 | 350,000 | 379,498 |
| 3.65%, 10/12/23 | 100,000 | 109,927 |
| 2.60%, 03/07/24 | 150,000 | 160,724 |
| 2.65%, 06/24/24 | 100,000 | 107,926 |
| 2.05%, 01/09/25 | 100,000 | 106,230 |
| Johnson Controls International PLC |
| 3.63%, 07/02/24 (a) | 100,000 | 108,494 |
| L3Harris Technologies, Inc. |
| 3.85%, 06/15/23 (a) | 100,000 | 108,691 |
| 3.83%, 04/27/25 (a) | 200,000 | 225,233 |
| Lennox International, Inc. |
| 1.35%, 08/01/25 (a) | 250,000 | 252,546 |
| Lockheed Martin Corp. |
| 3.35%, 09/15/21 | 66,000 | 68,120 |
| 3.10%, 01/15/23 (a) | 200,000 | 212,049 |
| 2.90%, 03/01/25 (a) | 100,000 | 109,558 |
| Martin Marietta Materials, Inc. |
| 4.25%, 07/02/24 (a) | 150,000 | 166,663 |
| Masco Corp. |
| 5.95%, 03/15/22 | 100,000 | 107,901 |
| 4.45%, 04/01/25 (a) | 150,000 | 173,231 |
| Mohawk Industries, Inc. |
| 3.85%, 02/01/23 (a) | 200,000 | 212,951 |
| Northrop Grumman Corp. |
| 2.55%, 10/15/22 (a) | 250,000 | 261,281 |
| 3.25%, 08/01/23 | 150,000 | 162,475 |
| 2.93%, 01/15/25 (a) | 500,000 | 546,370 |
| Otis Worldwide Corp. |
| 2.06%, 04/05/25 (a)(c) | 200,000 | 211,430 |
| Parker-Hannifin Corp. |
| 3.50%, 09/15/22 | 50,000 | 52,798 |
| 2.70%, 06/14/24 (a) | 100,000 | 107,376 |
| 3.30%, 11/21/24 (a) | 50,000 | 54,978 |
| Precision Castparts Corp. |
| 2.50%, 01/15/23 (a) | 100,000 | 104,697 |
| 3.25%, 06/15/25 (a) | 250,000 | 279,601 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Raytheon Technologies Corp. |
| 2.80%, 03/15/22 (a)(c) | 350,000 | 362,003 |
| 2.50%, 12/15/22 (a)(c) | 200,000 | 208,283 |
| 3.20%, 03/15/24 (a)(c) | 100,000 | 108,135 |
| 3.95%, 08/16/25 (a) | 350,000 | 400,669 |
| Republic Services, Inc. |
| 5.25%, 11/15/21 | 100,000 | 105,701 |
| 3.55%, 06/01/22 (a) | 200,000 | 209,364 |
| 4.75%, 05/15/23 (a) | 200,000 | 220,739 |
| 2.50%, 08/15/24 (a) | 400,000 | 427,580 |
| 3.20%, 03/15/25 (a) | 100,000 | 110,114 |
| Rockwell Automation, Inc. |
| 2.88%, 03/01/25 (a) | 100,000 | 108,595 |
| Roper Technologies, Inc. |
| 2.80%, 12/15/21 (a) | 200,000 | 205,639 |
| 0.45%, 08/15/22 (e) | 250,000 | 250,185 |
| 3.65%, 09/15/23 (a) | 300,000 | 327,064 |
| 2.35%, 09/15/24 (a) | 100,000 | 106,098 |
| 1.00%, 09/15/25 (a)(e) | 250,000 | 251,921 |
| Stanley Black & Decker, Inc. |
| 2.90%, 11/01/22 | 200,000 | 210,827 |
| 4.00%, 03/15/60 (a)(b) | 125,000 | 131,791 |
| Textron, Inc. |
| 4.30%, 03/01/24 (a) | 100,000 | 109,037 |
| The Boeing Co. |
| 2.30%, 08/01/21 | 100,000 | 100,779 |
| 2.35%, 10/30/21 | 100,000 | 101,164 |
| 2.13%, 03/01/22 (a) | 50,000 | 50,316 |
| 2.80%, 03/01/23 (a) | 50,000 | 51,066 |
| 4.51%, 05/01/23 (a) | 480,000 | 506,842 |
| 1.88%, 06/15/23 (a) | 100,000 | 99,597 |
| 2.80%, 03/01/24 (a) | 600,000 | 612,498 |
| 4.88%, 05/01/25 (a) | 650,000 | 707,990 |
| Trane Technologies Global Holding Co., Ltd. |
| 4.25%, 06/15/23 | 200,000 | 221,487 |
| Vulcan Materials Co. |
| 4.50%, 04/01/25 (a) | 100,000 | 114,349 |
| Waste Management, Inc. |
| 2.40%, 05/15/23 (a) | 100,000 | 104,789 |
| 3.50%, 05/15/24 (a) | 50,000 | 54,770 |
| 3.13%, 03/01/25 (a) | 100,000 | 109,970 |
| Westinghouse Air Brake Technologies Corp. |
| 4.40%, 03/15/24 (a)(f)(g) | 200,000 | 218,637 |
| 3.20%, 06/15/25 (a) | 100,000 | 105,782 |
| WW Grainger, Inc. |
| 1.85%, 02/15/25 (a) | 100,000 | 105,065 |
| Xylem, Inc. |
| 4.88%, 10/01/21 | 100,000 | 104,622 |
| | | 25,494,980 |
| Communications 1.3% |
| Activision Blizzard, Inc. |
| 2.60%, 06/15/22 (a) | 100,000 | 103,948 |
| America Movil, S.A.B. de CV |
| 3.13%, 07/16/22 | 250,000 | 260,695 |
| American Tower Corp. |
| 2.25%, 01/15/22 | 100,000 | 102,483 |
| 3.50%, 01/31/23 | 300,000 | 321,031 |
| 5.00%, 02/15/24 | 100,000 | 114,217 |
| 3.38%, 05/15/24 (a) | 100,000 | 109,189 |
| 2.95%, 01/15/25 (a) | 100,000 | 108,781 |
| 2.40%, 03/15/25 (a) | 600,000 | 639,786 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| AT&T, Inc. |
| 3.00%, 06/30/22 (a) | 300,000 | 313,051 |
| 2.63%, 12/01/22 (a) | 250,000 | 261,307 |
| 4.05%, 12/15/23 | 100,000 | 111,405 |
| 3.90%, 03/11/24 (a) | 100,000 | 110,528 |
| 4.45%, 04/01/24 (a) | 100,000 | 112,306 |
| 3.95%, 01/15/25 (a) | 150,000 | 169,027 |
| 3.40%, 05/15/25 (a) | 1,250,000 | 1,389,594 |
| 3.60%, 07/15/25 (a) | 300,000 | 336,441 |
| British Telecommunications PLC |
| 4.50%, 12/04/23 (a) | 200,000 | 222,643 |
| CC Holdings GS V LLC/Crown Castle GS III Corp. |
| 3.85%, 04/15/23 | 150,000 | 162,214 |
| Charter Communications Operating LLC/Charter Communications Operating Capital |
| 4.46%, 07/23/22 (a) | 500,000 | 532,932 |
| 4.50%, 02/01/24 (a) | 250,000 | 279,182 |
| 4.91%, 07/23/25 (a) | 1,250,000 | 1,456,687 |
| Comcast Cable Communications Holdings, Inc. |
| 9.46%, 11/15/22 | 250,000 | 300,117 |
| Comcast Corp. |
| 3.13%, 07/15/22 | 200,000 | 210,140 |
| 2.85%, 01/15/23 | 200,000 | 212,044 |
| 2.75%, 03/01/23 (a) | 150,000 | 158,653 |
| 3.00%, 02/01/24 (a) | 350,000 | 378,569 |
| 3.60%, 03/01/24 | 100,000 | 110,507 |
| 3.70%, 04/15/24 (a) | 450,000 | 499,912 |
| 3.38%, 02/15/25 (a) | 150,000 | 166,929 |
| 3.10%, 04/01/25 (a) | 100,000 | 110,814 |
| 3.38%, 08/15/25 (a) | 250,000 | 280,505 |
| Crown Castle International Corp. |
| 5.25%, 01/15/23 | 500,000 | 554,382 |
| 3.15%, 07/15/23 (a) | 50,000 | 53,467 |
| 3.20%, 09/01/24 (a) | 100,000 | 108,753 |
| 1.35%, 07/15/25 (a) | 200,000 | 203,653 |
| Discovery Communications LLC |
| 2.95%, 03/20/23 (a) | 79,000 | 83,589 |
| 3.80%, 03/13/24 (a) | 200,000 | 219,016 |
| 3.90%, 11/15/24 (a) | 100,000 | 111,173 |
| 3.45%, 03/15/25 (a) | 50,000 | 55,249 |
| Fox Corp. |
| 3.67%, 01/25/22 | 125,000 | 130,650 |
| 4.03%, 01/25/24 (a) | 300,000 | 331,683 |
| 3.05%, 04/07/25 (a) | 100,000 | 109,734 |
| Grupo Televisa S.A.B. |
| 6.63%, 03/18/25 | 100,000 | 120,737 |
| Moody's Corp. |
| 2.63%, 01/15/23 (a) | 150,000 | 157,423 |
| 4.88%, 02/15/24 (a) | 250,000 | 283,211 |
| 3.75%, 03/24/25 (a) | 50,000 | 56,697 |
| NBCUniversal Media LLC |
| 2.88%, 01/15/23 | 350,000 | 370,856 |
| Omnicom Group, Inc./Omnicom Capital, Inc. |
| 3.63%, 05/01/22 | 200,000 | 210,318 |
| 3.65%, 11/01/24 (a) | 200,000 | 221,823 |
| Orange S.A. |
| 4.13%, 09/14/21 | 100,000 | 103,816 |
| Rogers Communications, Inc. |
| 3.00%, 03/15/23 (a) | 125,000 | 132,615 |
| 4.10%, 10/01/23 (a) | 250,000 | 275,989 |
| S&P Global, Inc. |
| 4.00%, 06/15/25 (a) | 200,000 | 229,285 |
| T-Mobile USA, Inc. |
| 3.50%, 04/15/25 (a)(c) | 650,000 | 718,955 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Telefonica Emisiones S.A. |
| 4.57%, 04/27/23 | 150,000 | 165,134 |
| The Interpublic Group of Cos., Inc. |
| 3.75%, 10/01/21 | 100,000 | 103,578 |
| 4.20%, 04/15/24 | 100,000 | 111,017 |
| The Walt Disney Co. |
| 1.65%, 09/01/22 | 150,000 | 153,702 |
| 3.00%, 09/15/22 | 200,000 | 210,542 |
| 1.75%, 08/30/24 (a) | 300,000 | 312,777 |
| 3.70%, 09/15/24 (a) | 100,000 | 111,266 |
| 3.35%, 03/24/25 | 375,000 | 418,776 |
| Thomson Reuters Corp. |
| 4.30%, 11/23/23 (a) | 200,000 | 220,279 |
| Time Warner Cable LLC |
| 4.00%, 09/01/21 (a) | 100,000 | 102,366 |
| Time Warner Entertainment Co. LP |
| 8.38%, 03/15/23 | 150,000 | 178,337 |
| TWDC Enterprises 18 Corp. |
| 2.75%, 08/16/21 | 100,000 | 102,401 |
| 2.45%, 03/04/22 | 100,000 | 103,233 |
| 2.35%, 12/01/22 | 200,000 | 208,728 |
| Verizon Communications, Inc. |
| 2.95%, 03/15/22 | 150,000 | 156,086 |
| 2.45%, 11/01/22 (a) | 100,000 | 104,205 |
| 5.15%, 09/15/23 | 850,000 | 968,758 |
| 4.15%, 03/15/24 (a) | 100,000 | 111,900 |
| 3.50%, 11/01/24 (a) | 350,000 | 389,529 |
| 3.38%, 02/15/25 | 550,000 | 615,681 |
| ViacomCBS, Inc. |
| 4.25%, 09/01/23 (a) | 150,000 | 164,191 |
| 3.88%, 04/01/24 (a) | 100,000 | 109,218 |
| 3.70%, 08/15/24 (a) | 200,000 | 219,635 |
| 4.75%, 05/15/25 (a) | 600,000 | 693,054 |
| Vodafone Group PLC |
| 2.50%, 09/26/22 | 100,000 | 104,074 |
| 2.95%, 02/19/23 | 250,000 | 264,961 |
| 3.75%, 01/16/24 | 800,000 | 877,980 |
| Weibo Corp. |
| 3.50%, 07/05/24 (a) | 200,000 | 212,079 |
| WPP Finance 2010 |
| 3.63%, 09/07/22 | 100,000 | 105,111 |
| 3.75%, 09/19/24 | 100,000 | 109,803 |
| | | 22,197,112 |
| Consumer Cyclical 2.1% |
| Advance Auto Parts, Inc. |
| 4.50%, 12/01/23 (a) | 100,000 | 110,321 |
| Alibaba Group Holding Ltd. |
| 3.13%, 11/28/21 (a) | 300,000 | 308,125 |
| 2.80%, 06/06/23 (a) | 200,000 | 211,835 |
| 3.60%, 11/28/24 (a) | 400,000 | 441,606 |
| Amazon.com, Inc. |
| 3.30%, 12/05/21 (a) | 150,000 | 154,999 |
| 2.50%, 11/29/22 (a) | 100,000 | 104,481 |
| 2.40%, 02/22/23 (a) | 250,000 | 262,687 |
| 0.40%, 06/03/23 | 500,000 | 502,057 |
| 2.80%, 08/22/24 (a) | 300,000 | 326,745 |
| 3.80%, 12/05/24 (a) | 200,000 | 226,514 |
| 0.80%, 06/03/25 (a) | 200,000 | 202,826 |
| American Honda Finance Corp. |
| 1.65%, 07/12/21 | 100,000 | 101,136 |
| 1.70%, 09/09/21 | 100,000 | 101,341 |
| 3.38%, 12/10/21 | 100,000 | 103,753 |
| 1.95%, 05/20/22 | 250,000 | 256,466 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 2.60%, 11/16/22 | 350,000 | 366,319 |
| 2.05%, 01/10/23 | 250,000 | 259,199 |
| 1.95%, 05/10/23 | 150,000 | 155,567 |
| 0.88%, 07/07/23 | 250,000 | 252,211 |
| 3.63%, 10/10/23 | 100,000 | 109,258 |
| 3.55%, 01/12/24 | 150,000 | 164,255 |
| 2.40%, 06/27/24 | 200,000 | 212,126 |
| 2.15%, 09/10/24 | 100,000 | 105,536 |
| 1.20%, 07/08/25 | 250,000 | 252,631 |
| Aptiv Corp. |
| 4.15%, 03/15/24 (a) | 100,000 | 110,328 |
| AutoNation, Inc. |
| 3.50%, 11/15/24 (a) | 100,000 | 106,301 |
| AutoZone, Inc. |
| 3.13%, 07/15/23 (a) | 250,000 | 267,114 |
| 3.63%, 04/15/25 (a) | 300,000 | 336,901 |
| Block Financial LLC |
| 5.50%, 11/01/22 (a) | 100,000 | 107,286 |
| Booking Holdings, Inc. |
| 2.75%, 03/15/23 (a) | 100,000 | 105,480 |
| 4.10%, 04/13/25 (a) | 400,000 | 454,772 |
| BorgWarner, Inc. |
| 3.38%, 03/15/25 (a) | 50,000 | 54,520 |
| Costco Wholesale Corp. |
| 2.30%, 05/18/22 (a) | 100,000 | 103,550 |
| 2.75%, 05/18/24 (a) | 100,000 | 108,138 |
| Cummins, Inc. |
| 0.75%, 09/01/25 (a) | 300,000 | 300,982 |
| D.R. Horton, Inc. |
| 4.38%, 09/15/22 (a) | 100,000 | 106,480 |
| 4.75%, 02/15/23 (a) | 50,000 | 54,273 |
| 2.50%, 10/15/24 (a) | 100,000 | 106,746 |
| 2.60%, 10/15/25 (a) | 50,000 | 53,690 |
| Dollar General Corp. |
| 3.25%, 04/15/23 (a) | 100,000 | 106,287 |
| Dollar Tree, Inc. |
| 3.70%, 05/15/23 (a) | 200,000 | 215,744 |
| 4.00%, 05/15/25 (a) | 200,000 | 227,047 |
| eBay, Inc. |
| 3.80%, 03/09/22 (a) | 400,000 | 419,630 |
| 2.75%, 01/30/23 (a) | 150,000 | 157,720 |
| 3.45%, 08/01/24 (a) | 150,000 | 165,120 |
| 1.90%, 03/11/25 (a) | 250,000 | 262,507 |
| Expedia Group, Inc. |
| 3.60%, 12/15/23 (a) | 250,000 | 254,554 |
| 4.50%, 08/15/24 (a) | 50,000 | 52,507 |
| General Motors Co. |
| 4.88%, 10/02/23 | 200,000 | 218,667 |
| 5.40%, 10/02/23 | 450,000 | 499,268 |
| General Motors Financial Co., Inc. |
| 3.20%, 07/06/21 (a) | 200,000 | 203,238 |
| 4.38%, 09/25/21 | 100,000 | 103,436 |
| 4.20%, 11/06/21 | 250,000 | 258,477 |
| 3.45%, 01/14/22 (a) | 250,000 | 256,589 |
| 3.45%, 04/10/22 (a) | 150,000 | 154,400 |
| 3.15%, 06/30/22 (a) | 200,000 | 205,835 |
| 3.55%, 07/08/22 | 600,000 | 622,986 |
| 3.25%, 01/05/23 (a) | 250,000 | 259,559 |
| 5.20%, 03/20/23 | 200,000 | 218,476 |
| 3.70%, 05/09/23 (a) | 350,000 | 367,159 |
| 4.25%, 05/15/23 | 200,000 | 213,916 |
| 4.15%, 06/19/23 (a) | 100,000 | 106,707 |
| 1.70%, 08/18/23 | 350,000 | 352,303 |
| 5.10%, 01/17/24 (a) | 150,000 | 164,966 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.95%, 04/13/24 (a) | 250,000 | 267,152 |
| 3.50%, 11/07/24 (a) | 100,000 | 106,072 |
| 4.00%, 01/15/25 (a) | 200,000 | 215,507 |
| 2.90%, 02/26/25 (a) | 400,000 | 415,450 |
| 4.35%, 04/09/25 (a) | 250,000 | 273,922 |
| 2.75%, 06/20/25 (a) | 250,000 | 258,657 |
| GLP Capital LP/GLP Financing II, Inc. |
| 5.38%, 11/01/23 (a) | 100,000 | 107,173 |
| 3.35%, 09/01/24 (a) | 100,000 | 101,196 |
| 5.25%, 06/01/25 (a) | 150,000 | 162,691 |
| Hyatt Hotels Corp. |
| 3.38%, 07/15/23 (a) | 100,000 | 101,927 |
| 5.38%, 04/23/25 (a) | 100,000 | 108,905 |
| IHS Markit Ltd. |
| 3.63%, 05/01/24 (a) | 100,000 | 107,928 |
| Kohl's Corp. |
| 3.25%, 02/01/23 (a) | 50,000 | 49,997 |
| 9.50%, 05/15/25 (a) | 250,000 | 300,635 |
| Las Vegas Sands Corp. |
| 3.20%, 08/08/24 (a) | 200,000 | 203,208 |
| 2.90%, 06/25/25 (a) | 200,000 | 199,346 |
| Lowe's Cos., Inc. |
| 3.12%, 04/15/22 (a) | 150,000 | 155,777 |
| 3.88%, 09/15/23 (a) | 300,000 | 328,884 |
| 4.00%, 04/15/25 (a) | 175,000 | 200,187 |
| Magna International, Inc. |
| 3.63%, 06/15/24 (a) | 100,000 | 110,703 |
| Marriott International, Inc. |
| 2.30%, 01/15/22 (a) | 200,000 | 202,067 |
| 3.60%, 04/15/24 (a) | 250,000 | 259,331 |
| 5.75%, 05/01/25 (a) | 350,000 | 394,376 |
| Mastercard, Inc. |
| 2.00%, 11/21/21 (a) | 100,000 | 102,015 |
| 3.38%, 04/01/24 | 100,000 | 110,626 |
| 2.00%, 03/03/25 (a) | 100,000 | 106,914 |
| McDonald's Corp. |
| 2.63%, 01/15/22 | 150,000 | 154,545 |
| 3.35%, 04/01/23 (a) | 300,000 | 321,447 |
| 3.25%, 06/10/24 | 100,000 | 109,705 |
| 3.38%, 05/26/25 (a) | 150,000 | 167,513 |
| 3.30%, 07/01/25 (a) | 200,000 | 223,663 |
| NIKE, Inc. |
| 2.25%, 05/01/23 (a) | 100,000 | 104,543 |
| 2.40%, 03/27/25 (a) | 150,000 | 161,835 |
| Nordstrom, Inc. |
| 4.00%, 10/15/21 (a) | 150,000 | 149,434 |
| NVR, Inc. |
| 3.95%, 09/15/22 (a) | 100,000 | 105,861 |
| O'Reilly Automotive, Inc. |
| 4.63%, 09/15/21 (a) | 400,000 | 412,472 |
| PACCAR Financial Corp. |
| 2.65%, 05/10/22 | 100,000 | 104,047 |
| 2.30%, 08/10/22 | 100,000 | 103,771 |
| 1.90%, 02/07/23 | 150,000 | 155,368 |
| 2.65%, 04/06/23 | 100,000 | 105,815 |
| 0.35%, 08/11/23 | 200,000 | 199,986 |
| 2.15%, 08/15/24 | 100,000 | 106,156 |
| 1.80%, 02/06/25 | 200,000 | 210,119 |
| PVH Corp. |
| 4.63%, 07/10/25 (a) | 250,000 | 256,597 |
| Ralph Lauren Corp. |
| 1.70%, 06/15/22 | 200,000 | 203,882 |
| Ross Stores, Inc. |
| 4.60%, 04/15/25 (a) | 200,000 | 231,047 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Sands China Ltd. |
| 4.60%, 08/08/23 (a) | 200,000 | 214,118 |
| 5.13%, 08/08/25 (a) | 500,000 | 553,210 |
| Starbucks Corp. |
| 1.30%, 05/07/22 | 150,000 | 152,418 |
| 2.70%, 06/15/22 (a) | 100,000 | 103,559 |
| 3.10%, 03/01/23 (a) | 100,000 | 106,387 |
| 3.85%, 10/01/23 (a) | 100,000 | 109,405 |
| 3.80%, 08/15/25 (a) | 300,000 | 341,715 |
| Tapestry, Inc. |
| 4.25%, 04/01/25 (a) | 100,000 | 102,135 |
| Target Corp. |
| 2.90%, 01/15/22 | 100,000 | 103,637 |
| 3.50%, 07/01/24 | 200,000 | 222,907 |
| 2.25%, 04/15/25 (a) | 300,000 | 322,120 |
| The Home Depot, Inc. |
| 3.25%, 03/01/22 | 100,000 | 104,551 |
| 2.63%, 06/01/22 (a) | 400,000 | 415,834 |
| 2.70%, 04/01/23 (a) | 225,000 | 237,630 |
| 3.75%, 02/15/24 (a) | 100,000 | 110,752 |
| The TJX Cos., Inc. |
| 2.50%, 05/15/23 (a) | 100,000 | 104,838 |
| 3.50%, 04/15/25 (a) | 400,000 | 446,814 |
| The Western Union Co. |
| 4.25%, 06/09/23 (a) | 150,000 | 162,842 |
| Toyota Motor Corp. |
| 2.36%, 07/02/24 | 100,000 | 106,704 |
| Toyota Motor Credit Corp. |
| 3.40%, 09/15/21 | 150,000 | 154,840 |
| 2.60%, 01/11/22 | 250,000 | 257,751 |
| 3.30%, 01/12/22 | 500,000 | 520,232 |
| 1.15%, 05/26/22 | 500,000 | 507,070 |
| 0.45%, 07/22/22 | 250,000 | 250,544 |
| 2.15%, 09/08/22 | 150,000 | 155,320 |
| 2.63%, 01/10/23 | 300,000 | 315,208 |
| 2.90%, 03/30/23 | 100,000 | 106,268 |
| 0.50%, 08/14/23 | 450,000 | 451,123 |
| 1.35%, 08/25/23 | 200,000 | 205,319 |
| 3.45%, 09/20/23 | 350,000 | 381,365 |
| 2.25%, 10/18/23 | 100,000 | 105,370 |
| 2.90%, 04/17/24 | 100,000 | 108,052 |
| 1.80%, 02/13/25 | 300,000 | 314,161 |
| 3.00%, 04/01/25 | 350,000 | 385,371 |
| 3.40%, 04/14/25 | 150,000 | 168,113 |
| VF Corp. |
| 2.05%, 04/23/22 | 100,000 | 102,668 |
| 2.40%, 04/23/25 (a) | 150,000 | 159,596 |
| Visa, Inc. |
| 2.15%, 09/15/22 (a) | 250,000 | 259,317 |
| 2.80%, 12/14/22 (a) | 500,000 | 527,247 |
| Walgreen Co. |
| 3.10%, 09/15/22 | 350,000 | 367,496 |
| Walgreens Boots Alliance, Inc. |
| 3.30%, 11/18/21 (a) | 100,000 | 102,777 |
| 3.80%, 11/18/24 (a) | 300,000 | 331,948 |
| Walmart, Inc. |
| 3.13%, 06/23/21 | 300,000 | 307,138 |
| 2.35%, 12/15/22 (a) | 250,000 | 261,300 |
| 2.55%, 04/11/23 (a) | 300,000 | 315,865 |
| 3.40%, 06/26/23 (a) | 500,000 | 542,150 |
| 3.30%, 04/22/24 (a) | 350,000 | 383,267 |
| 2.85%, 07/08/24 (a) | 200,000 | 217,627 |
| 2.65%, 12/15/24 (a) | 150,000 | 162,972 |
| 3.55%, 06/26/25 (a) | 300,000 | 341,856 |
| | | 35,065,012 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Consumer Non-Cyclical 3.7% |
| Abbott Laboratories |
| 2.55%, 03/15/22 | 150,000 | 155,181 |
| 3.40%, 11/30/23 (a) | 450,000 | 491,413 |
| 2.95%, 03/15/25 (a) | 95,000 | 104,272 |
| AbbVie, Inc. |
| 3.38%, 11/14/21 | 150,000 | 155,228 |
| 2.15%, 11/19/21 (c) | 300,000 | 305,998 |
| 5.00%, 12/15/21 (a)(c) | 200,000 | 209,080 |
| 3.45%, 03/15/22 (a)(c) | 450,000 | 468,031 |
| 3.25%, 10/01/22 (a)(c) | 400,000 | 419,538 |
| 2.90%, 11/06/22 | 550,000 | 578,328 |
| 3.20%, 11/06/22 (a) | 180,000 | 189,481 |
| 2.30%, 11/21/22 (c) | 700,000 | 727,020 |
| 2.85%, 05/14/23 (a) | 150,000 | 158,577 |
| 3.75%, 11/14/23 (a) | 400,000 | 438,586 |
| 3.85%, 06/15/24 (a)(c) | 350,000 | 386,150 |
| 2.60%, 11/21/24 (a)(c) | 600,000 | 642,780 |
| 3.80%, 03/15/25 (a)(c) | 550,000 | 615,057 |
| 3.60%, 05/14/25 (a) | 700,000 | 781,704 |
| Altria Group, Inc. |
| 3.49%, 02/14/22 | 300,000 | 313,072 |
| 2.85%, 08/09/22 | 350,000 | 365,475 |
| 2.95%, 05/02/23 | 50,000 | 52,949 |
| 4.00%, 01/31/24 | 200,000 | 221,400 |
| 3.80%, 02/14/24 (a) | 250,000 | 274,556 |
| 2.35%, 05/06/25 (a) | 200,000 | 212,627 |
| AmerisourceBergen Corp. |
| 3.40%, 05/15/24 (a) | 100,000 | 108,879 |
| 3.25%, 03/01/25 (a) | 97,000 | 106,846 |
| Amgen, Inc. |
| 3.88%, 11/15/21 (a) | 124,286 | 128,383 |
| 2.65%, 05/11/22 (a) | 500,000 | 518,282 |
| 3.63%, 05/15/22 (a) | 100,000 | 104,744 |
| 2.25%, 08/19/23 (a) | 250,000 | 262,479 |
| 3.63%, 05/22/24 (a) | 150,000 | 165,670 |
| 1.90%, 02/21/25 (a) | 300,000 | 315,526 |
| 3.13%, 05/01/25 (a) | 200,000 | 220,873 |
| Anheuser-Busch InBev Finance, Inc. |
| 3.30%, 02/01/23 (a) | 520,000 | 553,748 |
| 3.70%, 02/01/24 | 100,000 | 110,199 |
| Anheuser-Busch InBev Worldwide, Inc. |
| 3.50%, 01/12/24 (a) | 200,000 | 218,312 |
| 4.15%, 01/23/25 (a) | 450,000 | 511,778 |
| Archer-Daniels-Midland Co. |
| 3.38%, 03/15/22 (a) | 100,000 | 104,494 |
| 2.75%, 03/27/25 (a) | 100,000 | 109,148 |
| AstraZeneca PLC |
| 2.38%, 06/12/22 (a) | 200,000 | 207,026 |
| 3.50%, 08/17/23 (a) | 100,000 | 108,529 |
| BAT Capital Corp. |
| 2.76%, 08/15/22 (a) | 450,000 | 467,989 |
| 3.22%, 08/15/24 (a) | 550,000 | 593,483 |
| 2.79%, 09/06/24 (a) | 150,000 | 159,842 |
| Baxalta, Inc. |
| 4.00%, 06/23/25 (a) | 200,000 | 229,204 |
| Beam Suntory, Inc. |
| 3.25%, 05/15/22 (a) | 100,000 | 103,512 |
| Becton Dickinson & Co. |
| 3.13%, 11/08/21 | 300,000 | 309,010 |
| 2.89%, 06/06/22 (a) | 450,000 | 467,257 |
| 3.36%, 06/06/24 (a) | 250,000 | 272,186 |
| 3.73%, 12/15/24 (a) | 200,000 | 222,353 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Biogen, Inc. |
| 3.63%, 09/15/22 | 150,000 | 159,598 |
| Boston Scientific Corp. |
| 3.38%, 05/15/22 | 200,000 | 209,614 |
| 3.45%, 03/01/24 (a) | 200,000 | 217,701 |
| 1.90%, 06/01/25 (a) | 200,000 | 209,773 |
| Bristol-Myers Squibb Co. |
| 2.25%, 08/15/21 | 100,000 | 101,982 |
| 2.60%, 05/16/22 | 450,000 | 468,169 |
| 2.00%, 08/01/22 | 150,000 | 154,616 |
| 3.25%, 08/15/22 | 100,000 | 105,697 |
| 3.55%, 08/15/22 | 150,000 | 159,369 |
| 2.75%, 02/15/23 (a) | 350,000 | 369,453 |
| 3.25%, 02/20/23 (a) | 350,000 | 374,479 |
| 4.00%, 08/15/23 | 100,000 | 110,563 |
| 3.63%, 05/15/24 (a) | 150,000 | 165,895 |
| 2.90%, 07/26/24 (a) | 500,000 | 545,105 |
| 3.88%, 08/15/25 (a) | 550,000 | 633,619 |
| Bunge Ltd Finance Corp. |
| 4.35%, 03/15/24 (a) | 100,000 | 110,305 |
| Bunge Ltd. Finance Corp. |
| 3.00%, 09/25/22 (a) | 100,000 | 104,106 |
| 1.63%, 08/17/25 (a) | 250,000 | 251,879 |
| Campbell Soup Co. |
| 3.65%, 03/15/23 (a) | 150,000 | 160,569 |
| 3.95%, 03/15/25 (a) | 150,000 | 168,920 |
| 3.30%, 03/19/25 (a) | 100,000 | 109,271 |
| Cardinal Health, Inc. |
| 2.62%, 06/15/22 (a) | 200,000 | 206,794 |
| 3.20%, 03/15/23 | 200,000 | 212,312 |
| 3.08%, 06/15/24 (a) | 150,000 | 161,840 |
| Church & Dwight Co., Inc. |
| 2.45%, 08/01/22 (a) | 150,000 | 155,227 |
| Cigna Corp. |
| 3.40%, 09/17/21 | 250,000 | 257,865 |
| 3.05%, 11/30/22 (a) | 100,000 | 105,404 |
| 3.00%, 07/15/23 (a) | 400,000 | 427,180 |
| 3.75%, 07/15/23 (a) | 550,000 | 598,834 |
| 3.50%, 06/15/24 (a) | 97,000 | 106,334 |
| 3.25%, 04/15/25 (a) | 100,000 | 110,491 |
| Colgate-Palmolive Co. |
| 2.30%, 05/03/22 | 100,000 | 103,536 |
| 2.25%, 11/15/22 | 100,000 | 104,361 |
| 2.10%, 05/01/23 | 100,000 | 104,762 |
| 3.25%, 03/15/24 | 100,000 | 110,026 |
| CommonSpirit Health |
| 2.95%, 11/01/22 | 100,000 | 105,086 |
| 2.76%, 10/01/24 (a) | 150,000 | 157,483 |
| Conagra Brands, Inc. |
| 3.80%, 10/22/21 | 150,000 | 155,638 |
| 3.20%, 01/25/23 (a) | 150,000 | 158,358 |
| 4.30%, 05/01/24 (a) | 200,000 | 223,959 |
| Constellation Brands, Inc. |
| 2.70%, 05/09/22 (a) | 150,000 | 155,252 |
| 2.65%, 11/07/22 (a) | 100,000 | 104,331 |
| 3.20%, 02/15/23 (a) | 150,000 | 159,104 |
| 4.25%, 05/01/23 | 100,000 | 109,929 |
| 4.75%, 11/15/24 | 150,000 | 173,994 |
| Covidien International Finance SA |
| 3.20%, 06/15/22 (a) | 200,000 | 208,630 |
| CVS Health Corp. |
| 2.13%, 06/01/21 (a) | 300,000 | 303,538 |
| 3.50%, 07/20/22 (a) | 400,000 | 421,472 |
| 2.75%, 12/01/22 (a) | 450,000 | 471,645 |
| 3.70%, 03/09/23 (a) | 1,100,000 | 1,184,810 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.38%, 08/12/24 (a) | 100,000 | 109,816 |
| 2.63%, 08/15/24 (a) | 100,000 | 107,253 |
| 4.10%, 03/25/25 (a) | 900,000 | 1,026,864 |
| 3.88%, 07/20/25 (a) | 700,000 | 793,877 |
| DH Europe Finance II Sarl |
| 2.05%, 11/15/22 | 200,000 | 206,716 |
| 2.20%, 11/15/24 (a) | 100,000 | 106,060 |
| Diageo Capital PLC |
| 2.63%, 04/29/23 (a) | 350,000 | 368,300 |
| 2.13%, 10/24/24 (a) | 200,000 | 211,721 |
| Diageo Investment Corp. |
| 2.88%, 05/11/22 | 100,000 | 104,258 |
| 8.00%, 09/15/22 | 50,000 | 57,439 |
| Eli Lilly & Co. |
| 2.35%, 05/15/22 | 100,000 | 103,591 |
| General Mills, Inc. |
| 2.60%, 10/12/22 (a) | 200,000 | 208,668 |
| 3.70%, 10/17/23 (a) | 250,000 | 274,046 |
| 3.65%, 02/15/24 (a) | 150,000 | 164,825 |
| 4.00%, 04/17/25 (a) | 100,000 | 114,173 |
| Gilead Sciences, Inc. |
| 4.40%, 12/01/21 (a) | 300,000 | 312,228 |
| 1.95%, 03/01/22 (a) | 250,000 | 255,782 |
| 3.25%, 09/01/22 (a) | 200,000 | 210,744 |
| 2.50%, 09/01/23 (a) | 200,000 | 211,723 |
| 3.70%, 04/01/24 (a) | 250,000 | 276,122 |
| 3.50%, 02/01/25 (a) | 200,000 | 223,518 |
| GlaxoSmithKline Capital PLC |
| 2.85%, 05/08/22 | 400,000 | 417,060 |
| 2.88%, 06/01/22 (a) | 450,000 | 469,255 |
| 3.00%, 06/01/24 (a) | 200,000 | 217,370 |
| GlaxoSmithKline Capital, Inc. |
| 2.80%, 03/18/23 | 200,000 | 212,308 |
| 3.38%, 05/15/23 | 200,000 | 216,127 |
| 3.63%, 05/15/25 | 250,000 | 284,474 |
| Hasbro, Inc. |
| 2.60%, 11/19/22 | 300,000 | 310,209 |
| 3.00%, 11/19/24 (a) | 100,000 | 105,889 |
| HCA, Inc. |
| 4.75%, 05/01/23 | 200,000 | 219,954 |
| 5.00%, 03/15/24 | 450,000 | 508,990 |
| 5.25%, 04/15/25 | 300,000 | 350,289 |
| Johnson & Johnson |
| 2.25%, 03/03/22 (a) | 200,000 | 205,765 |
| 2.05%, 03/01/23 (a) | 450,000 | 468,616 |
| 2.63%, 01/15/25 (a) | 100,000 | 109,009 |
| 0.55%, 09/01/25 (a) | 500,000 | 501,680 |
| Kellogg Co. |
| 3.13%, 05/17/22 | 150,000 | 156,598 |
| 2.65%, 12/01/23 | 150,000 | 159,566 |
| Keurig Dr Pepper, Inc. |
| 4.06%, 05/25/23 (a) | 500,000 | 546,477 |
| 3.13%, 12/15/23 (a) | 100,000 | 107,835 |
| 4.42%, 05/25/25 (a) | 200,000 | 232,094 |
| Laboratory Corp. of America Holdings |
| 3.75%, 08/23/22 (a) | 200,000 | 210,955 |
| 4.00%, 11/01/23 (a) | 55,000 | 60,300 |
| 3.25%, 09/01/24 (a) | 250,000 | 274,640 |
| 2.30%, 12/01/24 (a) | 100,000 | 106,316 |
| 3.60%, 02/01/25 (a) | 150,000 | 167,517 |
| McCormick & Co., Inc. |
| 2.70%, 08/15/22 (a) | 100,000 | 104,291 |
| 3.15%, 08/15/24 (a) | 100,000 | 109,577 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| McKesson Corp. |
| 2.70%, 12/15/22 (a) | 200,000 | 208,474 |
| 2.85%, 03/15/23 (a) | 150,000 | 157,402 |
| 3.80%, 03/15/24 (a) | 150,000 | 164,693 |
| Medtronic, Inc. |
| 3.15%, 03/15/22 | 300,000 | 313,089 |
| 3.63%, 03/15/24 (a) | 100,000 | 109,907 |
| 3.50%, 03/15/25 | 600,000 | 675,765 |
| Merck & Co., Inc. |
| 2.35%, 02/10/22 | 150,000 | 154,676 |
| 2.40%, 09/15/22 (a) | 250,000 | 259,645 |
| 2.80%, 05/18/23 | 250,000 | 266,744 |
| 2.90%, 03/07/24 (a) | 100,000 | 108,348 |
| 2.75%, 02/10/25 (a) | 400,000 | 436,776 |
| 0.75%, 02/24/26 (a) | 250,000 | 252,060 |
| Molson Coors Beverage Co. |
| 2.10%, 07/15/21 (a) | 250,000 | 253,164 |
| Mondelez International, Inc. |
| 0.63%, 07/01/22 | 300,000 | 301,468 |
| 3.63%, 05/07/23 (a) | 150,000 | 162,087 |
| 4.00%, 02/01/24 (a) | 150,000 | 167,909 |
| 1.50%, 05/04/25 (a) | 100,000 | 103,708 |
| Mylan N.V. |
| 3.15%, 06/15/21 (a) | 200,000 | 203,714 |
| Mylan, Inc. |
| 4.20%, 11/29/23 (a) | 150,000 | 164,890 |
| Novartis Capital Corp. |
| 2.40%, 09/21/22 | 350,000 | 365,202 |
| 3.40%, 05/06/24 | 600,000 | 663,900 |
| 1.75%, 02/14/25 (a) | 300,000 | 314,955 |
| PepsiCo, Inc. |
| 3.00%, 08/25/21 | 150,000 | 154,132 |
| 1.70%, 10/06/21 (a) | 161,000 | 163,397 |
| 2.75%, 03/05/22 | 400,000 | 414,886 |
| 3.10%, 07/17/22 (a) | 200,000 | 209,670 |
| 2.75%, 03/01/23 | 150,000 | 159,051 |
| 0.75%, 05/01/23 | 250,000 | 253,354 |
| 3.60%, 03/01/24 (a) | 350,000 | 385,166 |
| 2.25%, 03/19/25 (a) | 200,000 | 214,908 |
| 2.75%, 04/30/25 (a) | 150,000 | 164,095 |
| 3.50%, 07/17/25 (a) | 200,000 | 226,372 |
| Perrigo Finance Unlimited Co. |
| 3.90%, 12/15/24 (a) | 200,000 | 216,414 |
| Pfizer, Inc. |
| 1.95%, 06/03/21 | 150,000 | 151,961 |
| 3.00%, 09/15/21 | 100,000 | 102,881 |
| 2.20%, 12/15/21 | 300,000 | 307,728 |
| 3.00%, 06/15/23 | 250,000 | 268,361 |
| 3.20%, 09/15/23 (a) | 300,000 | 325,155 |
| 2.95%, 03/15/24 (a) | 150,000 | 162,648 |
| 3.40%, 05/15/24 | 150,000 | 165,778 |
| 0.80%, 05/28/25 (a) | 250,000 | 252,846 |
| Philip Morris International, Inc. |
| 2.90%, 11/15/21 | 150,000 | 154,637 |
| 2.63%, 02/18/22 (a) | 100,000 | 103,108 |
| 2.38%, 08/17/22 (a) | 150,000 | 155,633 |
| 2.50%, 08/22/22 | 300,000 | 313,048 |
| 2.50%, 11/02/22 (a) | 150,000 | 156,674 |
| 1.13%, 05/01/23 | 250,000 | 254,439 |
| 2.13%, 05/10/23 (a) | 300,000 | 312,483 |
| 2.88%, 05/01/24 (a) | 200,000 | 215,945 |
| 1.50%, 05/01/25 (a) | 250,000 | 258,895 |
| Quest Diagnostics, Inc. |
| 3.50%, 03/30/25 (a) | 150,000 | 167,100 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Reynolds American, Inc. |
| 4.00%, 06/12/22 | 250,000 | 265,104 |
| 4.85%, 09/15/23 | 100,000 | 111,811 |
| 4.45%, 06/12/25 (a) | 500,000 | 569,577 |
| Royalty Pharma PLC |
| 0.75%, 09/02/23 (c)(e) | 350,000 | 349,802 |
| 1.20%, 09/02/25 (a)(c)(e) | 350,000 | 349,611 |
| Sanofi |
| 3.38%, 06/19/23 (a) | 150,000 | 162,370 |
| Shire Acquisitions Investments Ireland DAC |
| 2.40%, 09/23/21 (a) | 164,000 | 167,306 |
| 2.88%, 09/23/23 (a) | 650,000 | 692,279 |
| Stryker Corp. |
| 3.38%, 05/15/24 (a) | 100,000 | 109,470 |
| 1.15%, 06/15/25 (a) | 250,000 | 254,299 |
| Sysco Corp. |
| 2.60%, 06/12/22 | 100,000 | 103,505 |
| 3.55%, 03/15/25 (a) | 100,000 | 109,215 |
| 5.65%, 04/01/25 (a) | 150,000 | 177,535 |
| Takeda Pharmaceutical Co., Ltd. |
| 4.00%, 11/26/21 (a) | 200,000 | 208,177 |
| 4.40%, 11/26/23 (a) | 400,000 | 447,250 |
| The Clorox Co. |
| 3.05%, 09/15/22 (a) | 200,000 | 209,730 |
| The Coca-Cola Co. |
| 1.55%, 09/01/21 | 150,000 | 152,003 |
| 3.30%, 09/01/21 | 250,000 | 257,767 |
| 2.20%, 05/25/22 | 100,000 | 103,364 |
| 2.50%, 04/01/23 | 100,000 | 105,579 |
| 3.20%, 11/01/23 | 500,000 | 544,645 |
| 1.75%, 09/06/24 | 150,000 | 157,555 |
| 2.95%, 03/25/25 | 150,000 | 165,715 |
| The Estee Lauder Cos., Inc. |
| 2.00%, 12/01/24 (a) | 150,000 | 158,957 |
| The Hershey Co. |
| 3.38%, 05/15/23 (a) | 150,000 | 162,127 |
| 0.90%, 06/01/25 (a) | 100,000 | 101,020 |
| The J M Smucker Co. |
| 3.50%, 10/15/21 | 100,000 | 103,636 |
| 3.00%, 03/15/22 | 150,000 | 155,691 |
| The JM Smucker Co. |
| 3.50%, 03/15/25 | 100,000 | 112,691 |
| The Kroger Co. |
| 2.80%, 08/01/22 (a) | 250,000 | 260,650 |
| 4.00%, 02/01/24 (a) | 200,000 | 220,507 |
| The Procter & Gamble Co. |
| 1.70%, 11/03/21 | 200,000 | 203,473 |
| 2.30%, 02/06/22 | 200,000 | 205,984 |
| 2.15%, 08/11/22 | 450,000 | 466,891 |
| 2.45%, 03/25/25 | 200,000 | 217,265 |
| Thermo Fisher Scientific, Inc. |
| 3.00%, 04/15/23 (a) | 300,000 | 318,687 |
| 4.15%, 02/01/24 (a) | 150,000 | 166,456 |
| 4.13%, 03/25/25 (a) | 200,000 | 229,628 |
| Tyson Foods, Inc. |
| 2.25%, 08/23/21 (a) | 300,000 | 305,253 |
| 4.50%, 06/15/22 (a) | 100,000 | 106,324 |
| 3.90%, 09/28/23 (a) | 100,000 | 109,763 |
| 3.95%, 08/15/24 (a) | 300,000 | 334,674 |
| Unilever Capital Corp. |
| 1.38%, 07/28/21 | 250,000 | 252,570 |
| 3.00%, 03/07/22 | 350,000 | 364,548 |
| 3.25%, 03/07/24 (a) | 150,000 | 163,837 |
| 2.60%, 05/05/24 (a) | 100,000 | 107,243 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Upjohn, Inc. |
| 1.65%, 06/22/25 (a)(c) | 250,000 | 257,340 |
| Whirlpool Corp. |
| 4.85%, 06/15/21 | 100,000 | 103,508 |
| 4.00%, 03/01/24 | 100,000 | 110,189 |
| Wyeth LLC |
| 6.45%, 02/01/24 | 100,000 | 119,612 |
| Zimmer Biomet Holdings, Inc. |
| 3.15%, 04/01/22 (a) | 100,000 | 103,730 |
| 3.70%, 03/19/23 (a) | 100,000 | 107,340 |
| 3.55%, 04/01/25 (a) | 450,000 | 500,591 |
| Zoetis, Inc. |
| 3.25%, 08/20/21 | 100,000 | 102,774 |
| 3.25%, 02/01/23 (a) | 300,000 | 318,067 |
| | | 63,500,054 |
| Energy 2.0% |
| Baker Hughes a GE Co., LLC/Baker Hughes Co-Obligor, Inc. |
| 2.77%, 12/15/22 (a) | 400,000 | 419,620 |
| Boardwalk Pipelines LP |
| 4.95%, 12/15/24 (a) | 100,000 | 109,717 |
| BP Capital Markets America, Inc. |
| 2.11%, 09/16/21 (a) | 150,000 | 152,455 |
| 3.25%, 05/06/22 | 350,000 | 367,493 |
| 2.52%, 09/19/22 (a) | 100,000 | 103,996 |
| 2.94%, 04/06/23 | 400,000 | 424,938 |
| 2.75%, 05/10/23 | 450,000 | 478,264 |
| 3.22%, 11/28/23 (a) | 100,000 | 107,872 |
| 3.79%, 02/06/24 (a) | 200,000 | 220,121 |
| 3.22%, 04/14/24 (a) | 100,000 | 108,184 |
| 3.19%, 04/06/25 (a) | 350,000 | 386,389 |
| BP Capital Markets PLC |
| 3.06%, 03/17/22 | 300,000 | 312,504 |
| 3.25%, 05/06/22 | 100,000 | 104,735 |
| 3.81%, 02/10/24 | 250,000 | 275,874 |
| 3.54%, 11/04/24 | 100,000 | 110,963 |
| 3.51%, 03/17/25 | 150,000 | 167,779 |
| Canadian Natural Resources Ltd. |
| 2.95%, 01/15/23 (a) | 250,000 | 260,962 |
| 3.80%, 04/15/24 (a) | 100,000 | 107,955 |
| 3.90%, 02/01/25 (a) | 200,000 | 218,924 |
| 2.05%, 07/15/25 (a) | 250,000 | 256,290 |
| Cheniere Corpus Christi Holdings LLC |
| 7.00%, 06/30/24 (a) | 300,000 | 349,732 |
| 5.88%, 03/31/25 (a) | 300,000 | 346,443 |
| Chevron Corp. |
| 2.50%, 03/03/22 (a) | 250,000 | 257,962 |
| 2.36%, 12/05/22 (a) | 300,000 | 312,283 |
| 1.14%, 05/11/23 | 250,000 | 255,290 |
| 2.57%, 05/16/23 (a) | 150,000 | 158,420 |
| 3.19%, 06/24/23 (a) | 250,000 | 268,187 |
| 2.90%, 03/03/24 (a) | 150,000 | 161,699 |
| 1.55%, 05/11/25 (a) | 700,000 | 729,158 |
| Chevron USA, Inc. |
| 0.33%, 08/12/22 | 300,000 | 300,358 |
| 0.43%, 08/11/23 | 300,000 | 300,751 |
| 0.69%, 08/12/25 (a) | 300,000 | 300,792 |
| Cimarex Energy Co. |
| 4.38%, 06/01/24 (a) | 200,000 | 215,391 |
| Concho Resources, Inc. |
| 4.38%, 01/15/25 (a) | 100,000 | 103,348 |
| ConocoPhillips Co. |
| 3.35%, 11/15/24 (a) | 100,000 | 110,603 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Diamondback Energy, Inc. |
| 2.88%, 12/01/24 (a) | 150,000 | 154,894 |
| 4.75%, 05/31/25 (a) | 150,000 | 165,615 |
| 5.38%, 05/31/25 (a) | 250,000 | 260,542 |
| Dominion Energy Gas Holdings LLC |
| 2.50%, 11/15/24 (a) | 200,000 | 214,354 |
| 3.60%, 12/15/24 (a) | 100,000 | 111,300 |
| Enable Midstream Partners LP |
| 3.90%, 05/15/24 (a) | 100,000 | 99,897 |
| Enbridge, Inc. |
| 2.90%, 07/15/22 (a) | 250,000 | 260,011 |
| 4.00%, 10/01/23 (a) | 200,000 | 218,061 |
| 3.50%, 06/10/24 (a) | 100,000 | 108,570 |
| Energy Transfer Operating LP |
| 4.65%, 06/01/21 (a) | 200,000 | 203,698 |
| 5.20%, 02/01/22 (a) | 250,000 | 260,795 |
| 3.60%, 02/01/23 (a) | 200,000 | 207,417 |
| 4.20%, 09/15/23 (a) | 150,000 | 159,649 |
| 5.88%, 01/15/24 (a) | 150,000 | 166,552 |
| 4.90%, 02/01/24 (a) | 100,000 | 108,046 |
| 4.50%, 04/15/24 (a) | 200,000 | 215,785 |
| 4.05%, 03/15/25 (a) | 100,000 | 106,772 |
| 2.90%, 05/15/25 (a) | 500,000 | 514,590 |
| Energy Transfer Partners LP/Regency Energy Finance Corp. |
| 5.00%, 10/01/22 (a) | 100,000 | 105,947 |
| 4.50%, 11/01/23 (a) | 100,000 | 107,115 |
| Enterprise Products Operating LLC |
| 3.50%, 02/01/22 | 350,000 | 364,730 |
| 3.35%, 03/15/23 (a) | 400,000 | 425,396 |
| 3.90%, 02/15/24 (a) | 300,000 | 329,676 |
| 3.75%, 02/15/25 (a) | 150,000 | 167,735 |
| 4.88%, 08/16/77 (a)(b) | 110,000 | 98,192 |
| EOG Resources, Inc. |
| 2.63%, 03/15/23 (a) | 150,000 | 157,789 |
| 3.15%, 04/01/25 (a) | 100,000 | 110,176 |
| Exxon Mobil Corp. |
| 2.40%, 03/06/22 (a) | 200,000 | 205,732 |
| 1.90%, 08/16/22 | 100,000 | 103,251 |
| 2.73%, 03/01/23 (a) | 200,000 | 211,008 |
| 1.57%, 04/15/23 | 600,000 | 619,224 |
| 3.18%, 03/15/24 (a) | 100,000 | 108,568 |
| 2.02%, 08/16/24 (a) | 300,000 | 316,702 |
| 2.71%, 03/06/25 (a) | 200,000 | 217,054 |
| 2.99%, 03/19/25 (a) | 650,000 | 714,834 |
| Halliburton Co. |
| 3.25%, 11/15/21 (a) | 100,000 | 102,589 |
| 3.50%, 08/01/23 (a) | 150,000 | 160,045 |
| Husky Energy, Inc. |
| 3.95%, 04/15/22 (a) | 100,000 | 103,255 |
| 4.00%, 04/15/24 (a) | 100,000 | 105,915 |
| Kinder Morgan Energy Partners LP |
| 5.00%, 10/01/21 (a) | 100,000 | 103,583 |
| 4.15%, 03/01/22 | 150,000 | 157,655 |
| 3.50%, 09/01/23 (a) | 100,000 | 107,209 |
| 4.15%, 02/01/24 (a) | 100,000 | 109,799 |
| 4.30%, 05/01/24 (a) | 100,000 | 110,959 |
| Kinder Morgan, Inc. |
| 3.15%, 01/15/23 (a) | 400,000 | 422,340 |
| 4.30%, 06/01/25 (a) | 400,000 | 454,550 |
| Marathon Oil Corp. |
| 2.80%, 11/01/22 (a) | 450,000 | 461,020 |
| 3.85%, 06/01/25 (a) | 200,000 | 208,329 |
| Marathon Petroleum Corp. |
| 5.38%, 10/01/22 (a) | 200,000 | 200,809 |
| 4.50%, 05/01/23 (a) | 200,000 | 217,705 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 4.75%, 12/15/23 (a) | 100,000 | 111,070 |
| 3.63%, 09/15/24 (a) | 100,000 | 108,121 |
| 4.70%, 05/01/25 (a) | 400,000 | 456,582 |
| MPLX LP |
| 3.50%, 12/01/22 (a) | 100,000 | 104,851 |
| 3.38%, 03/15/23 (a) | 100,000 | 105,504 |
| 4.50%, 07/15/23 (a) | 150,000 | 162,803 |
| 4.88%, 12/01/24 (a) | 200,000 | 225,794 |
| 5.25%, 01/15/25 (a) | 100,000 | 104,390 |
| 4.88%, 06/01/25 (a) | 250,000 | 285,527 |
| National Fuel Gas Co. |
| 4.90%, 12/01/21 (a) | 150,000 | 156,880 |
| 5.20%, 07/15/25 (a) | 250,000 | 277,510 |
| Newfield Exploration Co. |
| 5.75%, 01/30/22 | 100,000 | 102,621 |
| 5.63%, 07/01/24 | 150,000 | 154,850 |
| Noble Energy, Inc. |
| 3.90%, 11/15/24 (a) | 100,000 | 111,324 |
| ONEOK Partners LP |
| 3.38%, 10/01/22 (a) | 100,000 | 104,233 |
| 4.90%, 03/15/25 (a) | 100,000 | 109,757 |
| ONEOK, Inc. |
| 7.50%, 09/01/23 (a) | 150,000 | 173,035 |
| 2.75%, 09/01/24 (a) | 100,000 | 103,405 |
| 5.85%, 01/15/26 (a) | 75,000 | 86,792 |
| Ovintiv, Inc. |
| 3.90%, 11/15/21 (a) | 250,000 | 253,315 |
| Phillips 66 |
| 4.30%, 04/01/22 | 250,000 | 265,035 |
| 3.70%, 04/06/23 | 100,000 | 107,685 |
| 3.85%, 04/09/25 (a) | 250,000 | 280,187 |
| Phillips 66 Partners LP |
| 2.45%, 12/15/24 (a) | 100,000 | 104,044 |
| Plains All American Pipeline LP/PAA Finance Corp. |
| 3.65%, 06/01/22 (a) | 100,000 | 102,822 |
| 2.85%, 01/31/23 (a) | 100,000 | 102,456 |
| 3.85%, 10/15/23 (a) | 100,000 | 106,064 |
| 3.60%, 11/01/24 (a) | 300,000 | 312,934 |
| Sabine Pass Liquefaction LLC |
| 6.25%, 03/15/22 (a) | 250,000 | 266,891 |
| 5.63%, 04/15/23 (a) | 200,000 | 221,039 |
| 5.75%, 05/15/24 (a) | 300,000 | 343,302 |
| 5.63%, 03/01/25 (a) | 500,000 | 582,740 |
| Schlumberger Investment S.A. |
| 3.65%, 12/01/23 (a) | 250,000 | 271,329 |
| Shell International Finance BV |
| 1.75%, 09/12/21 | 200,000 | 203,048 |
| 2.38%, 08/21/22 | 150,000 | 156,028 |
| 2.25%, 01/06/23 | 150,000 | 156,832 |
| 3.40%, 08/12/23 | 141,000 | 153,287 |
| 3.50%, 11/13/23 (a) | 250,000 | 273,691 |
| 2.00%, 11/07/24 (a) | 200,000 | 211,212 |
| 2.38%, 04/06/25 (a) | 450,000 | 483,633 |
| 3.25%, 05/11/25 | 500,000 | 558,617 |
| Southern Natural Gas Co., LLC/Southern Natural Issuing Corp. |
| 4.40%, 06/15/21 (a) | 50,000 | 51,029 |
| Spectra Energy Partners LP |
| 4.75%, 03/15/24 (a) | 200,000 | 224,736 |
| 3.50%, 03/15/25 (a) | 150,000 | 164,822 |
| Suncor Energy, Inc. |
| 2.80%, 05/15/23 | 200,000 | 210,869 |
| 3.60%, 12/01/24 (a) | 150,000 | 165,519 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Sunoco Logistics Partners Operations LP |
| 3.45%, 01/15/23 (a) | 150,000 | 155,278 |
| 4.25%, 04/01/24 (a) | 100,000 | 106,421 |
| TC PipeLines LP |
| 4.65%, 06/15/21 (a) | 50,000 | 50,934 |
| The Williams Cos., Inc. |
| 7.88%, 09/01/21 | 100,000 | 107,189 |
| 3.60%, 03/15/22 (a) | 150,000 | 155,941 |
| 3.35%, 08/15/22 (a) | 200,000 | 208,580 |
| 3.70%, 01/15/23 (a) | 200,000 | 212,397 |
| 4.50%, 11/15/23 (a) | 150,000 | 165,088 |
| 4.30%, 03/04/24 (a) | 200,000 | 219,834 |
| 4.55%, 06/24/24 (a) | 200,000 | 224,582 |
| 3.90%, 01/15/25 (a) | 250,000 | 275,562 |
| Total Capital Canada Ltd. |
| 2.75%, 07/15/23 | 450,000 | 481,441 |
| Total Capital International S.A. |
| 2.75%, 06/19/21 | 250,000 | 254,969 |
| 2.22%, 07/12/21 (a) | 150,000 | 152,291 |
| 2.70%, 01/25/23 | 100,000 | 105,460 |
| 3.70%, 01/15/24 | 150,000 | 165,649 |
| 3.75%, 04/10/24 | 150,000 | 166,840 |
| 2.43%, 01/10/25 (a) | 150,000 | 160,717 |
| Total Capital S.A. |
| 4.25%, 12/15/21 | 100,000 | 105,130 |
| TransCanada PipeLines Ltd. |
| 2.50%, 08/01/22 | 300,000 | 311,398 |
| Valero Energy Corp. |
| 2.70%, 04/15/23 | 100,000 | 104,529 |
| 3.65%, 03/15/25 | 350,000 | 385,331 |
| 2.85%, 04/15/25 (a) | 100,000 | 107,061 |
| | | 33,551,728 |
| Industrial Other 0.0% |
| Cintas Corp. No 2 |
| 2.90%, 04/01/22 (a) | 150,000 | 155,535 |
| Technology 2.5% |
| Adobe, Inc. |
| 1.70%, 02/01/23 | 100,000 | 103,456 |
| 1.90%, 02/01/25 (a) | 100,000 | 105,986 |
| 3.25%, 02/01/25 (a) | 100,000 | 111,314 |
| Agilent Technologies, Inc. |
| 3.88%, 07/15/23 (a) | 275,000 | 298,847 |
| Alphabet, Inc. |
| 3.38%, 02/25/24 | 400,000 | 441,598 |
| 0.45%, 08/15/25 (a) | 250,000 | 250,007 |
| Altera Corp. |
| 4.10%, 11/15/23 | 150,000 | 167,572 |
| Analog Devices, Inc. |
| 3.13%, 12/05/23 (a) | 200,000 | 215,747 |
| 2.95%, 04/01/25 (a) | 100,000 | 109,667 |
| Apple, Inc. |
| 1.55%, 08/04/21 (a) | 225,000 | 227,637 |
| 2.15%, 02/09/22 | 200,000 | 205,459 |
| 2.50%, 02/09/22 (a) | 250,000 | 257,546 |
| 2.30%, 05/11/22 (a) | 150,000 | 154,870 |
| 2.70%, 05/13/22 | 100,000 | 104,100 |
| 1.70%, 09/11/22 | 251,000 | 258,233 |
| 2.10%, 09/12/22 (a) | 100,000 | 103,578 |
| 2.40%, 01/13/23 (a) | 100,000 | 104,770 |
| 2.85%, 02/23/23 (a) | 400,000 | 423,474 |
| 2.40%, 05/03/23 | 1,050,000 | 1,108,994 |
| 0.75%, 05/11/23 | 100,000 | 101,224 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.00%, 02/09/24 (a) | 300,000 | 324,537 |
| 3.45%, 05/06/24 | 425,000 | 470,617 |
| 2.85%, 05/11/24 (a) | 200,000 | 216,566 |
| 1.80%, 09/11/24 (a) | 100,000 | 105,143 |
| 2.75%, 01/13/25 (a) | 200,000 | 218,470 |
| 2.50%, 02/09/25 | 250,000 | 271,347 |
| 1.13%, 05/11/25 (a) | 650,000 | 667,602 |
| 3.20%, 05/13/25 | 1,000,000 | 1,122,120 |
| 0.55%, 08/20/25 (a) | 550,000 | 551,738 |
| Arrow Electronics, Inc. |
| 3.50%, 04/01/22 (a) | 100,000 | 103,523 |
| 4.50%, 03/01/23 (a) | 100,000 | 107,241 |
| 3.25%, 09/08/24 (a) | 100,000 | 107,914 |
| Autodesk, Inc. |
| 3.60%, 12/15/22 (a) | 100,000 | 105,751 |
| Avnet, Inc. |
| 4.88%, 12/01/22 | 100,000 | 107,784 |
| Baidu, Inc. |
| 2.88%, 07/06/22 | 200,000 | 206,126 |
| 3.50%, 11/28/22 | 100,000 | 105,055 |
| 4.38%, 05/14/24 (a) | 450,000 | 496,753 |
| 3.08%, 04/07/25 (a) | 250,000 | 267,730 |
| Broadcom Corp./Broadcom Cayman Finance Ltd. |
| 2.65%, 01/15/23 (a) | 250,000 | 260,486 |
| 3.63%, 01/15/24 (a) | 350,000 | 378,306 |
| 3.13%, 01/15/25 (a) | 200,000 | 214,652 |
| Broadcom, Inc. |
| 3.13%, 10/15/22 | 200,000 | 209,827 |
| 3.63%, 10/15/24 (a) | 350,000 | 384,155 |
| 4.70%, 04/15/25 (a) | 350,000 | 400,195 |
| 3.15%, 11/15/25 (a) | 150,000 | 162,557 |
| Cadence Design Systems, Inc. |
| 4.38%, 10/15/24 (a) | 100,000 | 113,048 |
| Cisco Systems, Inc. |
| 1.85%, 09/20/21 (a) | 361,000 | 366,715 |
| 3.00%, 06/15/22 | 100,000 | 105,070 |
| 2.60%, 02/28/23 | 150,000 | 158,548 |
| 2.20%, 09/20/23 (a) | 250,000 | 263,636 |
| 3.63%, 03/04/24 | 150,000 | 166,843 |
| 3.50%, 06/15/25 | 250,000 | 286,429 |
| Corning, Inc. |
| 2.90%, 05/15/22 (a) | 100,000 | 103,544 |
| Dell International LLC/EMC Corp. |
| 4.42%, 06/15/21 (a)(c) | 431,000 | 442,393 |
| 5.45%, 06/15/23 (a)(c) | 700,000 | 773,153 |
| 4.00%, 07/15/24 (a)(c) | 100,000 | 108,296 |
| 5.85%, 07/15/25 (a)(c) | 250,000 | 293,482 |
| DXC Technology Co. |
| 4.00%, 04/15/23 | 100,000 | 105,712 |
| 4.25%, 04/15/24 (a) | 100,000 | 108,758 |
| 4.13%, 04/15/25 (a) | 100,000 | 108,333 |
| Equifax, Inc. |
| 3.30%, 12/15/22 (a) | 400,000 | 421,006 |
| 2.60%, 12/01/24 (a) | 100,000 | 107,072 |
| Equinix, Inc. |
| 2.63%, 11/18/24 (a) | 350,000 | 375,098 |
| 1.25%, 07/15/25 (a) | 250,000 | 253,872 |
| Fidelity National Information Services, Inc. |
| 3.50%, 04/15/23 (a) | 100,000 | 106,847 |
| Fiserv, Inc. |
| 3.50%, 10/01/22 (a) | 150,000 | 158,238 |
| 3.80%, 10/01/23 (a) | 200,000 | 219,024 |
| 2.75%, 07/01/24 (a) | 450,000 | 483,451 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Flex Ltd. |
| 5.00%, 02/15/23 | 100,000 | 109,405 |
| 3.75%, 02/01/26 (a) | 100,000 | 108,736 |
| Genpact Luxembourg Sarl |
| 3.70%, 04/01/22 (a)(f)(g) | 100,000 | 102,501 |
| Global Payments, Inc. |
| 3.75%, 06/01/23 (a) | 150,000 | 161,357 |
| 4.00%, 06/01/23 (a) | 100,000 | 108,673 |
| 2.65%, 02/15/25 (a) | 100,000 | 107,074 |
| Hewlett Packard Enterprise Co. |
| 3.50%, 10/05/21 (a) | 150,000 | 154,544 |
| 4.40%, 10/15/22 (a) | 150,000 | 160,806 |
| 4.45%, 10/02/23 (a) | 300,000 | 331,272 |
| 1.45%, 04/01/24 (a) | 500,000 | 506,147 |
| 4.65%, 10/01/24 (a) | 150,000 | 169,686 |
| HP, Inc. |
| 4.05%, 09/15/22 | 350,000 | 373,859 |
| 2.20%, 06/17/25 (a) | 150,000 | 158,293 |
| IBM Credit LLC |
| 3.60%, 11/30/21 | 150,000 | 156,183 |
| 2.20%, 09/08/22 | 100,000 | 103,751 |
| 3.00%, 02/06/23 | 100,000 | 106,352 |
| Intel Corp. |
| 3.30%, 10/01/21 | 200,000 | 206,662 |
| 2.35%, 05/11/22 (a) | 100,000 | 103,370 |
| 3.10%, 07/29/22 | 300,000 | 316,639 |
| 2.70%, 12/15/22 | 300,000 | 316,734 |
| 2.88%, 05/11/24 (a) | 450,000 | 487,519 |
| 3.40%, 03/25/25 (a) | 200,000 | 224,512 |
| 3.70%, 07/29/25 (a) | 550,000 | 628,757 |
| International Business Machines Corp. |
| 2.50%, 01/27/22 | 150,000 | 154,663 |
| 2.85%, 05/13/22 | 650,000 | 677,966 |
| 1.88%, 08/01/22 | 150,000 | 154,490 |
| 2.88%, 11/09/22 | 150,000 | 158,227 |
| 3.38%, 08/01/23 | 200,000 | 217,145 |
| 3.63%, 02/12/24 | 700,000 | 772,201 |
| 3.00%, 05/15/24 | 400,000 | 435,298 |
| Intuit, Inc. |
| 0.65%, 07/15/23 | 250,000 | 252,139 |
| 0.95%, 07/15/25 (a) | 150,000 | 151,843 |
| Jabil, Inc. |
| 4.70%, 09/15/22 | 100,000 | 107,425 |
| Juniper Networks, Inc. |
| 4.50%, 03/15/24 | 100,000 | 112,457 |
| Keysight Technologies, Inc. |
| 4.55%, 10/30/24 (a) | 100,000 | 113,209 |
| KLA Corp. |
| 4.65%, 11/01/24 (a) | 300,000 | 345,271 |
| Lam Research Corp. |
| 2.80%, 06/15/21 (a) | 100,000 | 101,769 |
| Leidos, Inc. |
| 3.63%, 05/15/25 (a)(c) | 200,000 | 223,373 |
| Marvell Technology Group Ltd. |
| 4.20%, 06/22/23 (a) | 100,000 | 108,304 |
| Microchip Technology, Inc. |
| 3.92%, 06/01/21 | 100,000 | 102,253 |
| 4.33%, 06/01/23 (a) | 200,000 | 215,941 |
| Micron Technology, Inc. |
| 2.50%, 04/24/23 | 200,000 | 208,756 |
| 4.64%, 02/06/24 (a) | 150,000 | 167,093 |
| Microsoft Corp. |
| 1.55%, 08/08/21 (a) | 450,000 | 455,170 |
| 2.40%, 02/06/22 (a) | 250,000 | 257,401 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 2.38%, 02/12/22 (a) | 250,000 | 257,369 |
| 2.65%, 11/03/22 (a) | 150,000 | 157,324 |
| 2.38%, 05/01/23 (a) | 150,000 | 157,786 |
| 2.00%, 08/08/23 (a) | 250,000 | 262,000 |
| 3.63%, 12/15/23 (a) | 200,000 | 220,284 |
| 2.88%, 02/06/24 (a) | 850,000 | 918,378 |
| 2.70%, 02/12/25 (a) | 500,000 | 546,427 |
| Motorola Solutions, Inc. |
| 3.75%, 05/15/22 | 85,000 | 89,707 |
| 3.50%, 03/01/23 | 100,000 | 106,259 |
| 4.00%, 09/01/24 | 100,000 | 110,920 |
| NetApp, Inc. |
| 1.88%, 06/22/25 (a) | 250,000 | 260,517 |
| NVIDIA Corp. |
| 2.20%, 09/16/21 (a) | 150,000 | 152,752 |
| NXP BV/NXP Funding LLC |
| 4.88%, 03/01/24 (a)(c) | 250,000 | 281,841 |
| NXP BV/NXP Funding LLC/NXP USA, Inc. |
| 2.70%, 05/01/25 (a)(c) | 100,000 | 106,728 |
| Oracle Corp. |
| 2.80%, 07/08/21 | 250,000 | 255,444 |
| 1.90%, 09/15/21 (a) | 650,000 | 660,234 |
| 2.50%, 05/15/22 (a) | 600,000 | 620,118 |
| 2.50%, 10/15/22 | 600,000 | 627,138 |
| 2.63%, 02/15/23 (a) | 150,000 | 157,965 |
| 3.63%, 07/15/23 | 150,000 | 163,846 |
| 2.40%, 09/15/23 (a) | 400,000 | 422,710 |
| 3.40%, 07/08/24 (a) | 250,000 | 274,981 |
| 2.95%, 11/15/24 (a) | 600,000 | 655,497 |
| 2.50%, 04/01/25 (a) | 800,000 | 862,764 |
| 2.95%, 05/15/25 (a) | 400,000 | 439,168 |
| PayPal Holdings, Inc. |
| 2.20%, 09/26/22 | 150,000 | 155,606 |
| 1.35%, 06/01/23 | 200,000 | 204,883 |
| 2.40%, 10/01/24 (a) | 250,000 | 267,214 |
| 1.65%, 06/01/25 (a) | 250,000 | 260,409 |
| QUALCOMM, Inc. |
| 3.00%, 05/20/22 | 500,000 | 523,165 |
| 2.60%, 01/30/23 (a) | 250,000 | 262,714 |
| 2.90%, 05/20/24 (a) | 200,000 | 216,189 |
| 3.45%, 05/20/25 (a) | 400,000 | 448,878 |
| salesforce.com, Inc. |
| 3.25%, 04/11/23 (a) | 100,000 | 107,403 |
| Seagate HDD Cayman |
| 4.75%, 06/01/23 | 100,000 | 107,997 |
| 4.88%, 03/01/24 (a) | 235,000 | 257,856 |
| 4.75%, 01/01/25 | 75,000 | 81,776 |
| Texas Instruments, Inc. |
| 1.85%, 05/15/22 (a) | 250,000 | 256,441 |
| 1.38%, 03/12/25 (a) | 75,000 | 77,811 |
| Trimble, Inc. |
| 4.15%, 06/15/23 (a) | 100,000 | 107,828 |
| Tyco Electronics Group S.A. |
| 3.45%, 08/01/24 (a) | 100,000 | 109,412 |
| Verisk Analytics, Inc. |
| 4.13%, 09/12/22 | 100,000 | 106,748 |
| 4.00%, 06/15/25 (a) | 200,000 | 229,406 |
| VMware, Inc. |
| 2.95%, 08/21/22 (a) | 200,000 | 208,774 |
| 4.50%, 05/15/25 (a) | 250,000 | 285,529 |
| Xilinx, Inc. |
| 2.95%, 06/01/24 (a) | 150,000 | 162,406 |
| | | 41,950,670 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Transportation 0.4% |
| Burlington Northern Santa Fe LLC |
| 3.05%, 09/01/22 (a) | 400,000 | 419,132 |
| 3.85%, 09/01/23 (a) | 300,000 | 328,167 |
| 3.75%, 04/01/24 (a) | 100,000 | 110,884 |
| 3.40%, 09/01/24 (a) | 100,000 | 110,741 |
| 3.00%, 04/01/25 (a) | 250,000 | 275,476 |
| Canadian National Railway Co. |
| 2.95%, 11/21/24 (a) | 100,000 | 108,230 |
| Canadian Pacific Railway Co. |
| 4.45%, 03/15/23 (a) | 100,000 | 108,740 |
| 2.90%, 02/01/25 (a) | 100,000 | 109,376 |
| Continental Airlines 2012-1 Class A Pass-Through Trust |
| 4.15%, 04/11/24 | 32,773 | 30,733 |
| CSX Corp. |
| 3.70%, 11/01/23 (a) | 300,000 | 328,956 |
| Delta Air Lines 2019-1 Class AA Pass-Through Trust |
| 3.20%, 04/25/24 | 200,000 | 199,558 |
| FedEx Corp. |
| 3.40%, 01/14/22 | 150,000 | 155,964 |
| 4.00%, 01/15/24 | 100,000 | 110,990 |
| 3.20%, 02/01/25 | 100,000 | 109,991 |
| 3.80%, 05/15/25 (a) | 300,000 | 339,522 |
| JB Hunt Transport Services, Inc. |
| 3.30%, 08/15/22 (a) | 100,000 | 104,946 |
| Norfolk Southern Corp. |
| 3.00%, 04/01/22 (a) | 250,000 | 258,742 |
| 3.85%, 01/15/24 (a) | 100,000 | 109,946 |
| Ryder System, Inc. |
| 3.40%, 03/01/23 (a) | 350,000 | 372,395 |
| 3.75%, 06/09/23 (a) | 150,000 | 161,780 |
| 3.88%, 12/01/23 (a) | 100,000 | 109,268 |
| 4.63%, 06/01/25 (a) | 250,000 | 288,236 |
| 3.35%, 09/01/25 (a) | 75,000 | 82,449 |
| Southwest Airlines Co. |
| 2.75%, 11/16/22 (a) | 50,000 | 51,355 |
| 4.75%, 05/04/23 | 225,000 | 239,950 |
| 5.25%, 05/04/25 (a) | 600,000 | 653,970 |
| Union Pacific Corp. |
| 3.20%, 06/08/21 | 100,000 | 102,199 |
| 2.95%, 03/01/22 | 100,000 | 103,997 |
| 4.16%, 07/15/22 (a) | 150,000 | 159,214 |
| 3.50%, 06/08/23 (a) | 150,000 | 162,322 |
| 3.65%, 02/15/24 (a) | 100,000 | 109,392 |
| 3.15%, 03/01/24 (a) | 100,000 | 108,581 |
| 3.25%, 01/15/25 (a) | 300,000 | 330,067 |
| United Parcel Service, Inc. |
| 2.35%, 05/16/22 (a) | 100,000 | 103,287 |
| 2.45%, 10/01/22 | 200,000 | 208,722 |
| 2.50%, 04/01/23 (a) | 250,000 | 262,951 |
| 2.20%, 09/01/24 (a) | 250,000 | 265,074 |
| 2.80%, 11/15/24 (a) | 75,000 | 81,494 |
| 3.90%, 04/01/25 (a) | 200,000 | 227,844 |
| | | 7,504,641 |
| | | 239,331,868 |
| |
| Utility 1.4% |
| Electric 1.3% |
| Alabama Power Co. |
| 3.55%, 12/01/23 | 150,000 | 164,764 |
| Ameren Corp. |
| 2.50%, 09/15/24 (a) | 100,000 | 106,930 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Ameren Illinois Co. |
| 2.70%, 09/01/22 (a) | 100,000 | 103,922 |
| American Electric Power Co., Inc. |
| 3.65%, 12/01/21 | 100,000 | 104,164 |
| Avangrid, Inc. |
| 3.15%, 12/01/24 (a) | 250,000 | 273,864 |
| 3.20%, 04/15/25 (a) | 100,000 | 110,494 |
| Berkshire Hathaway Energy Co. |
| 2.80%, 01/15/23 (a) | 250,000 | 264,057 |
| 3.75%, 11/15/23 (a) | 300,000 | 328,902 |
| 3.50%, 02/01/25 (a) | 100,000 | 111,402 |
| 4.05%, 04/15/25 (a)(c) | 450,000 | 515,635 |
| CenterPoint Energy, Inc. |
| 3.60%, 11/01/21 | 100,000 | 103,638 |
| 2.50%, 09/01/22 (a) | 150,000 | 155,496 |
| 2.50%, 09/01/24 (a) | 100,000 | 106,473 |
| CMS Energy Corp. |
| 5.05%, 03/15/22 (a) | 100,000 | 105,575 |
| Commonwealth Edison Co. |
| 3.40%, 09/01/21 (a) | 100,000 | 102,381 |
| Consumers Energy Co. |
| 3.38%, 08/15/23 (a) | 100,000 | 108,329 |
| Dominion Energy, Inc. |
| 2.00%, 08/15/21 (a) | 150,000 | 152,125 |
| 2.72%, 08/15/21 | 100,000 | 102,055 |
| 3.07%, 08/15/24 | 300,000 | 326,023 |
| 3.30%, 03/15/25 (a) | 100,000 | 111,104 |
| 5.75%, 10/01/54 (a)(b) | 22,000 | 23,386 |
| DTE Electric Co. |
| 3.65%, 03/15/24 (a) | 100,000 | 109,759 |
| DTE Energy Co. |
| 2.60%, 06/15/22 | 100,000 | 103,498 |
| 3.30%, 06/15/22 (a) | 100,000 | 104,280 |
| 3.70%, 08/01/23 (a) | 100,000 | 108,730 |
| 3.50%, 06/01/24 (a) | 350,000 | 381,512 |
| 2.53%, 10/01/24 | 100,000 | 106,401 |
| 1.05%, 06/01/25 (a) | 200,000 | 200,945 |
| Duke Energy Carolinas LLC |
| 3.35%, 05/15/22 | 250,000 | 262,895 |
| Duke Energy Corp. |
| 1.80%, 09/01/21 (a) | 328,000 | 332,372 |
| 3.05%, 08/15/22 (a) | 300,000 | 313,461 |
| 3.75%, 04/15/24 (a) | 300,000 | 330,894 |
| Duke Energy Ohio, Inc. |
| 3.80%, 09/01/23 (a) | 200,000 | 218,246 |
| Duke Energy Progress LLC |
| 3.00%, 09/15/21 (a) | 200,000 | 204,350 |
| 3.25%, 08/15/25 (a) | 250,000 | 280,527 |
| Edison International |
| 2.40%, 09/15/22 (a) | 100,000 | 101,923 |
| 3.13%, 11/15/22 (a) | 250,000 | 259,229 |
| 3.55%, 11/15/24 (a) | 100,000 | 106,657 |
| Emera US Finance LP |
| 2.70%, 06/15/21 (a) | 100,000 | 101,529 |
| Enel Generacion Chile S.A. |
| 4.25%, 04/15/24 (a) | 100,000 | 109,961 |
| Entergy Arkansas LLC |
| 3.70%, 06/01/24 (a) | 100,000 | 110,478 |
| Entergy Corp. |
| 4.00%, 07/15/22 (a) | 150,000 | 159,301 |
| 0.90%, 09/15/25 (a) | 250,000 | 250,229 |
| Entergy Louisiana LLC |
| 5.40%, 11/01/24 | 100,000 | 118,962 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Evergy, Inc. |
| 2.45%, 09/15/24 (a) | 250,000 | 265,437 |
| Eversource Energy |
| 2.75%, 03/15/22 (a) | 150,000 | 155,097 |
| 2.80%, 05/01/23 (a) | 600,000 | 632,361 |
| 2.90%, 10/01/24 (a) | 200,000 | 216,919 |
| 0.80%, 08/15/25 (a) | 200,000 | 200,465 |
| Exelon Corp. |
| 3.50%, 06/01/22 (a) | 500,000 | 523,465 |
| Exelon Generation Co., LLC |
| 4.25%, 06/15/22 (a) | 250,000 | 265,851 |
| 3.25%, 06/01/25 (a) | 450,000 | 497,295 |
| FirstEnergy Corp. |
| 2.85%, 07/15/22 (a) | 100,000 | 102,757 |
| 4.25%, 03/15/23 (a) | 100,000 | 106,425 |
| 2.05%, 03/01/25 (a) | 100,000 | 102,260 |
| Florida Power & Light Co. |
| 2.85%, 04/01/25 (a) | 250,000 | 274,929 |
| Georgia Power Co. |
| 2.85%, 05/15/22 | 100,000 | 104,033 |
| 2.10%, 07/30/23 | 100,000 | 104,802 |
| IPALCO Enterprises, Inc. |
| 3.70%, 09/01/24 (a) | 50,000 | 54,366 |
| ITC Holdings Corp. |
| 2.70%, 11/15/22 (a) | 100,000 | 104,691 |
| 3.65%, 06/15/24 (a) | 100,000 | 109,882 |
| MidAmerican Energy Co. |
| 3.50%, 10/15/24 (a) | 100,000 | 111,199 |
| National Rural Utilities Cooperative Finance Corp. |
| 2.40%, 04/25/22 (a) | 50,000 | 51,605 |
| 2.30%, 09/15/22 (a) | 100,000 | 103,694 |
| 3.40%, 11/15/23 (a) | 150,000 | 162,994 |
| 2.95%, 02/07/24 (a) | 150,000 | 161,263 |
| 2.85%, 01/27/25 (a) | 100,000 | 109,425 |
| 4.75%, 04/30/43 (a)(b) | 250,000 | 257,254 |
| NextEra Energy Capital Holdings, Inc. |
| 4.50%, 06/01/21 (a) | 300,000 | 306,306 |
| 2.40%, 09/01/21 | 250,000 | 255,267 |
| 2.90%, 04/01/22 | 100,000 | 103,932 |
| 3.30%, 08/15/22 | 200,000 | 211,087 |
| 1.95%, 09/01/22 | 100,000 | 102,939 |
| 2.80%, 01/15/23 (a) | 500,000 | 526,307 |
| 3.15%, 04/01/24 (a) | 145,000 | 157,521 |
| 2.75%, 05/01/25 (a) | 350,000 | 381,094 |
| Northern States Power Co. |
| 2.60%, 05/15/23 (a) | 150,000 | 157,267 |
| Ohio Power Co. |
| 5.38%, 10/01/21 | 150,000 | 158,189 |
| Oncor Electric Delivery Co., LLC |
| 2.75%, 06/01/24 (a) | 100,000 | 108,064 |
| Pacific Gas & Electric Co. |
| 1.75%, 06/16/22 (a) | 500,000 | 501,910 |
| 4.25%, 08/01/23 (a) | 200,000 | 214,338 |
| Pacific Gas and Electric Co. |
| 3.25%, 06/15/23 (a) | 200,000 | 207,909 |
| 3.45%, 07/01/25 | 400,000 | 422,016 |
| PacifiCorp |
| 2.95%, 06/01/23 (a) | 250,000 | 266,046 |
| Pinnacle West Capital Corp. |
| 1.30%, 06/15/25 (a) | 425,000 | 434,271 |
| Potomac Electric Power Co. |
| 3.60%, 03/15/24 (a) | 100,000 | 109,881 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| PPL Capital Funding, Inc. |
| 4.20%, 06/15/22 (a) | 200,000 | 211,386 |
| 3.95%, 03/15/24 (a) | 100,000 | 109,760 |
| Progress Energy, Inc. |
| 3.15%, 04/01/22 (a) | 250,000 | 259,079 |
| PSEG Power LLC |
| 3.85%, 06/01/23 (a) | 150,000 | 162,508 |
| Public Service Electric & Gas Co. |
| 2.38%, 05/15/23 (a) | 100,000 | 104,764 |
| 3.25%, 09/01/23 (a) | 150,000 | 162,273 |
| Public Service Enterprise Group, Inc. |
| 2.65%, 11/15/22 (a) | 250,000 | 261,706 |
| 2.88%, 06/15/24 (a) | 200,000 | 215,978 |
| 0.80%, 08/15/25 (a) | 250,000 | 250,281 |
| Puget Energy, Inc. |
| 6.00%, 09/01/21 | 150,000 | 157,852 |
| San Diego Gas & Electric Co. |
| 3.00%, 08/15/21 | 100,000 | 102,552 |
| 3.60%, 09/01/23 (a) | 150,000 | 162,078 |
| Sempra Energy |
| 3.55%, 06/15/24 (a) | 350,000 | 382,672 |
| Southern California Edison Co. |
| 3.40%, 06/01/23 (a) | 100,000 | 107,076 |
| 3.50%, 10/01/23 (a) | 150,000 | 161,472 |
| 3.70%, 08/01/25 (a) | 250,000 | 278,456 |
| Southern Power Co. |
| 2.50%, 12/15/21 (a) | 200,000 | 205,176 |
| 4.15%, 12/01/25 (a) | 250,000 | 287,607 |
| Southwestern Public Service Co. |
| 3.30%, 06/15/24 (a) | 100,000 | 108,662 |
| The Southern Co. |
| 2.35%, 07/01/21 (a) | 200,000 | 203,040 |
| 2.95%, 07/01/23 (a) | 500,000 | 533,067 |
| 5.50%, 03/15/57 (a)(b) | 75,000 | 77,691 |
| Virginia Electric & Power Co. |
| 2.95%, 01/15/22 (a) | 100,000 | 102,737 |
| 2.75%, 03/15/23 (a) | 150,000 | 158,128 |
| 3.45%, 02/15/24 (a) | 200,000 | 217,280 |
| Virginia Electric and Power Co. |
| 3.10%, 05/15/25 (a) | 100,000 | 110,400 |
| WEC Energy Group, Inc. |
| 3.10%, 03/08/22 | 400,000 | 417,046 |
| | | 22,770,398 |
| Natural Gas 0.1% |
| CenterPoint Energy Resources Corp. |
| 3.55%, 04/01/23 (a) | 100,000 | 107,160 |
| NiSource, Inc. |
| 0.95%, 08/15/25 (a) | 350,000 | 351,113 |
| Sempra Energy |
| 2.90%, 02/01/23 (a) | 150,000 | 158,016 |
| 4.05%, 12/01/23 (a) | 100,000 | 109,959 |
| Southern California Gas Co. |
| 3.15%, 09/15/24 (a) | 50,000 | 54,668 |
| Southern Co. Gas Capital Corp. |
| 2.45%, 10/01/23 (a) | 100,000 | 105,163 |
| | | 886,079 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Utility Other 0.0% |
| American Water Capital Corp. |
| 3.40%, 03/01/25 (a) | 150,000 | 166,334 |
| | | 23,822,811 |
| Total Corporates |
| (Cost $431,614,821) | | 445,984,727 |
|
| Treasuries 62.8% of net assets |
| Bonds |
| 8.00%, 11/15/21 | 105,000 | 114,963 |
| 7.25%, 08/15/22 | 400,000 | 455,664 |
| 7.63%, 11/15/22 | 226,000 | 263,334 |
| 7.13%, 02/15/23 | 700,000 | 820,121 |
| 6.25%, 08/15/23 | 1,500,000 | 1,770,879 |
| 7.50%, 11/15/24 | 600,000 | 783,000 |
| 7.63%, 02/15/25 | 500,000 | 664,043 |
| 6.88%, 08/15/25 | 1,000,000 | 1,324,922 |
| Notes |
| 1.25%, 10/31/21 | 7,996,400 | 8,099,947 |
| 1.50%, 10/31/21 | 7,600,000 | 7,720,383 |
| 2.00%, 10/31/21 | 11,765,500 | 12,020,343 |
| 2.00%, 11/15/21 | 8,525,200 | 8,717,183 |
| 2.88%, 11/15/21 | 8,200,000 | 8,470,824 |
| 1.50%, 11/30/21 | 10,300,000 | 10,475,422 |
| 1.75%, 11/30/21 | 6,810,900 | 6,947,916 |
| 1.88%, 11/30/21 | 7,129,300 | 7,283,861 |
| 2.63%, 12/15/21 | 10,750,000 | 11,094,336 |
| 1.63%, 12/31/21 | 6,700,000 | 6,832,691 |
| 2.00%, 12/31/21 | 6,574,600 | 6,737,681 |
| 2.13%, 12/31/21 | 7,780,300 | 7,985,901 |
| 2.50%, 01/15/22 | 8,000,000 | 8,258,594 |
| 1.38%, 01/31/22 | 8,100,000 | 8,241,750 |
| 1.50%, 01/31/22 | 5,025,300 | 5,121,978 |
| 1.88%, 01/31/22 | 9,044,300 | 9,265,815 |
| 2.00%, 02/15/22 | 6,715,300 | 6,897,085 |
| 2.50%, 02/15/22 | 6,500,000 | 6,723,057 |
| 1.13%, 02/28/22 | 8,400,000 | 8,524,359 |
| 1.75%, 02/28/22 | 6,243,800 | 6,394,407 |
| 1.88%, 02/28/22 | 6,969,800 | 7,150,851 |
| 2.38%, 03/15/22 | 6,800,000 | 7,033,750 |
| 0.38%, 03/31/22 | 7,900,000 | 7,930,242 |
| 1.75%, 03/31/22 | 5,310,000 | 5,445,135 |
| 1.88%, 03/31/22 | 8,755,000 | 8,994,907 |
| 2.25%, 04/15/22 | 7,700,000 | 7,963,184 |
| 0.13%, 04/30/22 | 10,400,000 | 10,398,578 |
| 1.75%, 04/30/22 | 6,700,000 | 6,879,670 |
| 1.88%, 04/30/22 | 6,570,000 | 6,759,786 |
| 1.75%, 05/15/22 | 7,200,000 | 7,397,578 |
| 2.13%, 05/15/22 | 6,900,000 | 7,133,279 |
| 0.13%, 05/31/22 | 8,500,000 | 8,498,174 |
| 1.75%, 05/31/22 | 8,000,000 | 8,225,000 |
| 1.88%, 05/31/22 | 6,200,000 | 6,387,938 |
| 1.75%, 06/15/22 | 8,500,000 | 8,744,209 |
| 0.13%, 06/30/22 | 8,100,000 | 8,098,418 |
| 1.75%, 06/30/22 | 6,200,000 | 6,382,609 |
| 2.13%, 06/30/22 | 5,700,000 | 5,906,625 |
| 1.75%, 07/15/22 | 5,700,000 | 5,871,557 |
| 0.13%, 07/31/22 | 8,300,000 | 8,298,217 |
| 1.88%, 07/31/22 | 6,100,000 | 6,302,658 |
| 2.00%, 07/31/22 | 6,100,000 | 6,317,074 |
| 1.50%, 08/15/22 | 7,450,000 | 7,648,764 |
| 1.63%, 08/15/22 | 4,300,000 | 4,425,137 |
| 0.13%, 08/31/22 | 11,500,000 | 11,498,428 |
| 1.63%, 08/31/22 | 5,750,000 | 5,920,815 |
| 1.88%, 08/31/22 | 6,200,000 | 6,415,063 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 1.50%, 09/15/22 | 6,100,000 | 6,270,133 |
| 1.75%, 09/30/22 | 5,450,000 | 5,632,873 |
| 1.88%, 09/30/22 | 5,100,000 | 5,284,078 |
| 1.38%, 10/15/22 | 5,300,000 | 5,439,332 |
| 1.88%, 10/31/22 | 4,400,000 | 4,565,516 |
| 2.00%, 10/31/22 | 6,000,000 | 6,241,641 |
| 1.63%, 11/15/22 | 13,100,000 | 13,529,332 |
| 2.00%, 11/30/22 | 12,150,000 | 12,657,832 |
| 1.63%, 12/15/22 | 6,100,000 | 6,308,496 |
| 2.13%, 12/31/22 | 9,800,000 | 10,252,867 |
| 1.50%, 01/15/23 | 4,900,000 | 5,058,293 |
| 1.75%, 01/31/23 | 5,605,000 | 5,823,288 |
| 2.38%, 01/31/23 | 7,125,000 | 7,509,360 |
| 1.38%, 02/15/23 | 5,100,000 | 5,254,793 |
| 2.00%, 02/15/23 | 12,700,000 | 13,279,437 |
| 1.50%, 02/28/23 | 8,450,000 | 8,736,838 |
| 2.63%, 02/28/23 | 4,850,000 | 5,151,041 |
| 0.50%, 03/15/23 | 6,700,000 | 6,761,766 |
| 1.50%, 03/31/23 | 6,100,000 | 6,314,215 |
| 2.50%, 03/31/23 | 5,735,000 | 6,084,029 |
| 0.25%, 04/15/23 | 8,000,000 | 8,023,438 |
| 1.63%, 04/30/23 | 5,200,000 | 5,405,359 |
| 2.75%, 04/30/23 | 6,900,000 | 7,378,957 |
| 0.13%, 05/15/23 | 9,400,000 | 9,396,328 |
| 1.75%, 05/15/23 | 8,970,000 | 9,359,985 |
| 1.63%, 05/31/23 | 6,050,000 | 6,296,254 |
| 2.75%, 05/31/23 | 6,100,000 | 6,536,293 |
| 0.25%, 06/15/23 | 9,700,000 | 9,728,797 |
| 1.38%, 06/30/23 | 5,600,000 | 5,794,906 |
| 2.63%, 06/30/23 | 5,800,000 | 6,206,453 |
| 0.13%, 07/15/23 | 5,800,000 | 5,796,828 |
| 1.25%, 07/31/23 | 5,900,000 | 6,089,445 |
| 2.75%, 07/31/23 | 6,100,000 | 6,561,789 |
| 0.13%, 08/15/23 | 10,800,000 | 10,792,828 |
| 2.50%, 08/15/23 | 9,800,000 | 10,480,258 |
| 1.38%, 08/31/23 | 6,200,000 | 6,427,414 |
| 2.75%, 08/31/23 | 5,000,000 | 5,388,867 |
| 1.38%, 09/30/23 | 5,600,000 | 5,810,656 |
| 2.88%, 09/30/23 | 6,600,000 | 7,151,461 |
| 1.63%, 10/31/23 | 5,000,000 | 5,231,641 |
| 2.88%, 10/31/23 | 6,850,000 | 7,437,334 |
| 2.75%, 11/15/23 | 11,450,000 | 12,397,309 |
| 2.13%, 11/30/23 | 5,300,000 | 5,637,047 |
| 2.88%, 11/30/23 | 9,000,000 | 9,789,961 |
| 2.25%, 12/31/23 | 4,200,000 | 4,490,719 |
| 2.63%, 12/31/23 | 11,800,000 | 12,762,898 |
| 2.25%, 01/31/24 | 3,500,000 | 3,747,734 |
| 2.50%, 01/31/24 | 12,550,000 | 13,544,686 |
| 2.75%, 02/15/24 | 8,000,000 | 8,710,938 |
| 2.13%, 02/29/24 | 3,900,000 | 4,165,078 |
| 2.38%, 02/29/24 | 4,300,000 | 4,629,387 |
| 2.13%, 03/31/24 | 11,250,000 | 12,030,029 |
| 2.00%, 04/30/24 | 5,000,000 | 5,331,641 |
| 2.25%, 04/30/24 | 7,950,000 | 8,548,734 |
| 2.50%, 05/15/24 | 9,000,000 | 9,769,219 |
| 2.00%, 05/31/24 | 12,550,000 | 13,396,635 |
| 1.75%, 06/30/24 | 8,400,000 | 8,897,109 |
| 2.00%, 06/30/24 | 3,200,000 | 3,420,500 |
| 1.75%, 07/31/24 | 6,200,000 | 6,573,695 |
| 2.13%, 07/31/24 | 4,500,000 | 4,837,676 |
| 2.38%, 08/15/24 | 12,400,000 | 13,461,750 |
| 1.25%, 08/31/24 | 8,000,000 | 8,331,875 |
| 1.88%, 08/31/24 | 4,900,000 | 5,225,582 |
| 1.50%, 09/30/24 | 6,700,000 | 7,050,441 |
| 2.13%, 09/30/24 | 5,310,000 | 5,722,355 |
| 1.50%, 10/31/24 | 7,450,000 | 7,846,072 |
| 2.25%, 10/31/24 | 4,500,000 | 4,879,160 |
| 2.25%, 11/15/24 | 12,500,000 | 13,563,477 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 1.50%, 11/30/24 | 7,050,000 | 7,430,865 |
| 2.13%, 11/30/24 | 4,400,000 | 4,753,719 |
| 1.75%, 12/31/24 | 7,600,000 | 8,099,047 |
| 2.25%, 12/31/24 | 5,800,000 | 6,304,781 |
| 1.38%, 01/31/25 | 8,750,000 | 9,188,525 |
| 2.50%, 01/31/25 | 6,300,000 | 6,927,047 |
| 2.00%, 02/15/25 | 11,300,000 | 12,183,695 |
| 1.13%, 02/28/25 | 7,800,000 | 8,112,000 |
| 2.75%, 02/28/25 | 4,800,000 | 5,339,063 |
| 0.50%, 03/31/25 | 7,600,000 | 7,689,656 |
| 2.63%, 03/31/25 | 4,200,000 | 4,655,438 |
| 0.38%, 04/30/25 | 8,700,000 | 8,750,977 |
| 2.88%, 04/30/25 | 5,250,000 | 5,889,229 |
| 2.13%, 05/15/25 | 12,800,000 | 13,921,500 |
| 0.25%, 05/31/25 | 9,300,000 | 9,300,000 |
| 2.88%, 05/31/25 | 4,800,000 | 5,394,375 |
| 0.25%, 06/30/25 | 5,000,000 | 4,998,242 |
| 2.75%, 06/30/25 | 4,900,000 | 5,485,512 |
| 0.25%, 07/31/25 | 7,600,000 | 7,594,953 |
| 2.88%, 07/31/25 | 5,000,000 | 5,636,523 |
| 2.00%, 08/15/25 | 15,000,000 | 16,273,242 |
| 0.25%, 08/31/25 | 12,500,000 | 12,491,699 |
| 2.75%, 08/31/25 | 5,000,000 | 5,614,453 |
| Total Treasuries |
| (Cost $1,042,266,081) | | 1,064,284,804 |
|
| Government Related 10.3% of net assets |
| |
| Agency 5.3% |
| Foreign 2.1% |
| Austria 0.1% |
| Oesterreichische Kontrollbank AG |
| 2.88%, 09/07/21 | 250,000 | 256,609 |
| 2.63%, 01/31/22 | 200,000 | 206,684 |
| 1.63%, 09/17/22 | 200,000 | 205,616 |
| 2.88%, 03/13/23 | 350,000 | 372,818 |
| 3.13%, 11/07/23 | 550,000 | 598,708 |
| 1.50%, 02/12/25 | 200,000 | 209,508 |
| | | 1,849,943 |
| British Virgin Islands 0.0% |
| CNOOC Finance 2013 Ltd. |
| 3.00%, 05/09/23 | 250,000 | 263,161 |
| Canada 0.1% |
| CNOOC Finance 2014 ULC |
| 4.25%, 04/30/24 | 450,000 | 499,619 |
| Export Development Canada |
| 2.00%, 05/17/22 | 450,000 | 463,631 |
| 1.75%, 07/18/22 | 400,000 | 411,344 |
| 2.50%, 01/24/23 | 150,000 | 158,115 |
| 1.38%, 02/24/23 | 250,000 | 256,981 |
| 2.75%, 03/15/23 | 150,000 | 159,373 |
| 2.63%, 02/21/24 | 250,000 | 270,291 |
| | | 2,219,354 |
| China 0.0% |
| Industrial & Commercial Bank of China Ltd. |
| 2.45%, 10/20/21 | 100,000 | 101,667 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Colombia 0.0% |
| Ecopetrol S.A. |
| 5.88%, 09/18/23 | 250,000 | 276,961 |
| 4.13%, 01/16/25 | 150,000 | 159,016 |
| | | 435,977 |
| Germany 1.1% |
| FMS Wertmanagement |
| 1.38%, 06/08/21 (h) | 200,000 | 201,821 |
| 2.00%, 08/01/22 (h) | 200,000 | 206,792 |
| 2.75%, 03/06/23 (h) | 500,000 | 531,610 |
| 2.75%, 01/30/24 (h) | 250,000 | 270,911 |
| Kreditanstalt Fuer Wiederaufbau |
| 1.50%, 06/15/21 (h) | 700,000 | 707,143 |
| 2.38%, 08/25/21 (h) | 239,000 | 244,050 |
| 1.75%, 09/15/21 (h) | 150,000 | 152,392 |
| 2.00%, 11/30/21 (h) | 200,000 | 204,432 |
| 3.13%, 12/15/21 (h) | 1,400,000 | 1,452,339 |
| 2.63%, 01/25/22 (h) | 605,000 | 625,401 |
| 2.50%, 02/15/22 (h) | 650,000 | 671,586 |
| 2.13%, 03/07/22 (h) | 300,000 | 308,756 |
| 2.13%, 06/15/22 (h) | 700,000 | 723,884 |
| 1.75%, 08/22/22 (h) | 1,000,000 | 1,030,420 |
| 2.00%, 09/29/22 (h) | 300,000 | 311,147 |
| 2.00%, 10/04/22 (h) | 600,000 | 622,362 |
| 2.38%, 12/29/22 (h) | 500,000 | 525,027 |
| 2.13%, 01/17/23 (h) | 2,000,000 | 2,090,360 |
| 1.63%, 02/15/23 (h) | 650,000 | 672,288 |
| 2.63%, 02/28/24 (h) | 950,000 | 1,028,156 |
| 1.38%, 08/05/24 (h) | 350,000 | 364,842 |
| 2.50%, 11/20/24 (h) | 600,000 | 654,834 |
| 0.38%, 07/18/25 (h) | 2,250,000 | 2,250,776 |
| Landwirtschaftliche Rentenbank |
| 1.75%, 09/24/21 (h) | 100,000 | 101,627 |
| 2.25%, 10/01/21 (h) | 100,000 | 102,187 |
| 2.00%, 12/06/21 (h) | 350,000 | 357,753 |
| 3.13%, 11/14/23 (h) | 200,000 | 218,177 |
| 2.00%, 01/13/25 (h) | 250,000 | 267,504 |
| 0.50%, 05/27/25 (h) | 300,000 | 301,400 |
| 2.38%, 06/10/25 (h) | 750,000 | 819,015 |
| | | 18,018,992 |
| Japan 0.3% |
| Japan Bank for International Cooperation |
| 1.50%, 07/21/21 | 600,000 | 606,153 |
| 2.50%, 06/01/22 | 200,000 | 207,424 |
| 2.38%, 11/16/22 | 300,000 | 313,014 |
| 1.75%, 01/23/23 | 300,000 | 309,758 |
| 0.63%, 05/22/23 | 750,000 | 754,436 |
| 3.25%, 07/20/23 | 750,000 | 810,495 |
| 3.38%, 07/31/23 | 200,000 | 217,046 |
| 3.38%, 10/31/23 | 200,000 | 218,293 |
| 2.50%, 05/23/24 | 450,000 | 483,619 |
| 3.00%, 05/29/24 | 200,000 | 218,580 |
| 1.75%, 10/17/24 | 200,000 | 210,009 |
| 2.13%, 02/10/25 | 200,000 | 213,635 |
| 2.50%, 05/28/25 | 1,000,000 | 1,089,860 |
| | | 5,652,322 |
| Norway 0.1% |
| Equinor A.S.A. |
| 3.15%, 01/23/22 | 250,000 | 259,755 |
| 2.45%, 01/17/23 | 150,000 | 157,266 |
| 2.65%, 01/15/24 | 193,000 | 206,630 |
| 3.70%, 03/01/24 | 200,000 | 222,780 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 3.25%, 11/10/24 | 100,000 | 110,981 |
| 2.88%, 04/06/25 (a) | 250,000 | 274,182 |
| | | 1,231,594 |
| Republic of Korea 0.2% |
| Export-Import Bank of Korea |
| 2.50%, 05/10/21 | 17,000 | 17,221 |
| 4.38%, 09/15/21 | 250,000 | 259,713 |
| 2.75%, 01/25/22 | 400,000 | 411,908 |
| 2.38%, 06/25/24 | 200,000 | 211,593 |
| 2.88%, 01/21/25 | 200,000 | 217,346 |
| The Korea Development Bank |
| 4.63%, 11/16/21 | 200,000 | 209,617 |
| 3.00%, 03/19/22 | 200,000 | 207,346 |
| 3.00%, 09/14/22 | 200,000 | 209,599 |
| 2.75%, 03/19/23 | 200,000 | 210,471 |
| 3.75%, 01/22/24 | 900,000 | 987,858 |
| | | 2,942,672 |
| Sweden 0.2% |
| Svensk Exportkredit AB |
| 1.63%, 09/12/21 | 200,000 | 202,740 |
| 3.13%, 11/08/21 | 250,000 | 258,344 |
| 2.38%, 03/09/22 | 300,000 | 309,341 |
| 1.63%, 11/14/22 | 200,000 | 205,649 |
| 2.88%, 03/14/23 | 250,000 | 265,896 |
| 1.75%, 12/12/23 | 550,000 | 574,882 |
| 0.38%, 07/30/24 | 500,000 | 499,862 |
| 0.63%, 05/14/25 | 225,000 | 226,420 |
| 0.50%, 08/26/25 | 350,000 | 350,000 |
| | | 2,893,134 |
| | | 35,608,816 |
| U.S. 3.2% |
| CNOOC Finance 2015 USA LLC |
| 3.50%, 05/05/25 | 750,000 | 828,735 |
| Fannie Mae |
| 1.38%, 10/07/21 | 400,000 | 405,434 |
| 2.63%, 01/11/22 | 4,050,000 | 4,188,166 |
| 1.88%, 04/05/22 | 500,000 | 513,878 |
| 2.25%, 04/12/22 | 2,500,000 | 2,585,837 |
| 2.38%, 01/19/23 | 1,250,000 | 1,315,206 |
| 0.25%, 05/22/23 | 3,000,000 | 3,003,405 |
| 2.88%, 09/12/23 | 800,000 | 864,168 |
| 1.75%, 07/02/24 | 500,000 | 528,162 |
| 1.63%, 01/07/25 | 500,000 | 527,562 |
| 0.63%, 04/22/25 | 1,000,000 | 1,010,165 |
| 0.50%, 06/17/25 | 1,500,000 | 1,506,000 |
| Federal Farm Credit Banks Funding Corp. |
| 1.95%, 11/02/21 | 500,000 | 509,593 |
| 0.38%, 04/08/22 | 600,000 | 602,169 |
| Federal Home Loan Bank |
| 2.38%, 09/10/21 | 250,000 | 255,698 |
| 3.00%, 10/12/21 | 3,600,000 | 3,714,858 |
| 1.88%, 11/29/21 | 1,000,000 | 1,021,890 |
| 1.63%, 12/20/21 | 6,500,000 | 6,627,400 |
| 0.13%, 08/12/22 | 2,000,000 | 1,999,040 |
| 2.50%, 02/13/24 | 1,800,000 | 1,940,706 |
| 1.50%, 08/15/24 | 200,000 | 209,928 |
| 0.50%, 04/14/25 | 3,000,000 | 3,018,870 |
| 0.50%, 06/13/25 | 500,000 | 501,423 |
| Freddie Mac |
| 2.38%, 01/13/22 | 528,000 | 544,170 |
| 0.25%, 06/08/22 | 4,000,000 | 4,008,920 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 2.75%, 06/19/23 | 2,100,000 | 2,248,218 |
| 0.25%, 06/26/23 | 3,000,000 | 3,001,170 |
| 0.25%, 08/24/23 | 5,000,000 | 5,001,800 |
| 1.50%, 02/12/25 | 200,000 | 209,951 |
| 0.38%, 07/21/25 | 1,000,000 | 998,150 |
| | | 53,690,672 |
| | | 89,299,488 |
| |
| Local Authority 0.7% |
| Foreign 0.6% |
| Canada 0.6% |
| Hydro-Quebec |
| 8.40%, 01/15/22 | 100,000 | 111,068 |
| Province of Alberta |
| 2.20%, 07/26/22 | 250,000 | 258,688 |
| 3.35%, 11/01/23 | 323,000 | 352,120 |
| 2.95%, 01/23/24 | 600,000 | 649,533 |
| 1.88%, 11/13/24 | 350,000 | 369,014 |
| 1.00%, 05/20/25 | 400,000 | 406,642 |
| Province of British Columbia |
| 2.00%, 10/23/22 | 350,000 | 362,978 |
| 1.75%, 09/27/24 | 150,000 | 158,136 |
| Province of Manitoba |
| 2.13%, 05/04/22 | 100,000 | 102,951 |
| 2.10%, 09/06/22 | 100,000 | 103,404 |
| 2.60%, 04/16/24 | 250,000 | 268,880 |
| 3.05%, 05/14/24 | 300,000 | 327,345 |
| Province of New Brunswick |
| 2.50%, 12/12/22 | 100,000 | 104,477 |
| Province of Ontario |
| 2.50%, 09/10/21 | 250,000 | 255,586 |
| 2.40%, 02/08/22 | 700,000 | 720,993 |
| 2.55%, 04/25/22 | 300,000 | 310,966 |
| 2.25%, 05/18/22 | 250,000 | 258,231 |
| 2.45%, 06/29/22 | 250,000 | 259,656 |
| 2.20%, 10/03/22 | 250,000 | 259,592 |
| 1.75%, 01/24/23 | 900,000 | 930,271 |
| 3.40%, 10/17/23 | 400,000 | 436,896 |
| 3.05%, 01/29/24 | 450,000 | 489,523 |
| 7.13%, 02/09/24 | 100,000 | 122,264 |
| 3.20%, 05/16/24 | 200,000 | 219,858 |
| Province of Quebec |
| 2.75%, 08/25/21 | 300,000 | 307,168 |
| 2.38%, 01/31/22 | 400,000 | 411,614 |
| 2.63%, 02/13/23 | 250,000 | 263,745 |
| 2.50%, 04/09/24 | 250,000 | 268,559 |
| 2.88%, 10/16/24 | 1,000,000 | 1,097,615 |
| 1.50%, 02/11/25 | 350,000 | 364,852 |
| 0.60%, 07/23/25 | 750,000 | 751,875 |
| Province of Saskatchewan |
| 8.50%, 07/15/22 | 25,000 | 28,704 |
| | | 11,333,204 |
| U.S. 0.1% |
| Illinois |
| 4.95%, 06/01/23 | 88,636 | 90,050 |
| Port Authority of New York & New Jersey |
| Consolidated Bonds AAA Series | | |
| 1.09%, 07/01/23 | 300,000 | 304,127 |
| State Board of Administration Finance Corp. |
| 2.64%, 07/01/21 | 250,000 | 254,599 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| State of California |
| 5.70%, 11/01/21 | 85,000 | 90,309 |
| University of California |
| 0.88%, 05/15/25 (a) | 250,000 | 254,985 |
| | | 994,070 |
| | | 12,327,274 |
| |
| Sovereign 0.7% |
| Canada 0.1% |
| Canada Government International Bond |
| 2.63%, 01/25/22 | 300,000 | 310,170 |
| 2.00%, 11/15/22 | 650,000 | 675,571 |
| 1.63%, 01/22/25 | 900,000 | 949,725 |
| | | 1,935,466 |
| Chile 0.0% |
| Chile Government International Bond |
| 2.25%, 10/30/22 | 150,000 | 155,813 |
| Colombia 0.1% |
| Colombia Government International Bond |
| 4.38%, 07/12/21 | 200,000 | 205,946 |
| 2.63%, 03/15/23 (a) | 400,000 | 411,142 |
| 4.00%, 02/26/24 (a) | 400,000 | 428,574 |
| | | 1,045,662 |
| Hungary 0.1% |
| Hungary Government International Bond |
| 5.38%, 02/21/23 | 500,000 | 553,287 |
| 5.75%, 11/22/23 | 210,000 | 241,749 |
| 5.38%, 03/25/24 | 350,000 | 403,666 |
| | | 1,198,702 |
| Indonesia 0.0% |
| Indonesia Government International Bond |
| 2.95%, 01/11/23 | 200,000 | 208,687 |
| 4.45%, 02/11/24 | 200,000 | 221,568 |
| | | 430,255 |
| Israel 0.0% |
| Israel Government International Bond |
| 4.00%, 06/30/22 | 250,000 | 265,795 |
| 3.15%, 06/30/23 | 500,000 | 536,770 |
| | | 802,565 |
| Italy 0.1% |
| Republic of Italy Government International Bond |
| 6.88%, 09/27/23 | 750,000 | 875,572 |
| 2.38%, 10/17/24 | 500,000 | 518,613 |
| | | 1,394,185 |
| Mexico 0.1% |
| Mexico Government International Bond |
| 3.63%, 03/15/22 | 300,000 | 314,910 |
| 4.00%, 10/02/23 | 750,000 | 818,932 |
| 3.60%, 01/30/25 | 250,000 | 272,439 |
| 3.90%, 04/27/25 (a) | 200,000 | 220,710 |
| | | 1,626,991 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Panama 0.0% |
| Panama Government International Bond |
| 4.00%, 09/22/24 (a) | 200,000 | 220,752 |
| 3.75%, 03/16/25 (a) | 200,000 | 220,190 |
| | | 440,942 |
| Philippines 0.1% |
| Philippine Government International Bond |
| 4.20%, 01/21/24 | 600,000 | 666,606 |
| 10.63%, 03/16/25 | 500,000 | 713,213 |
| | | 1,379,819 |
| Poland 0.1% |
| Republic of Poland Government International Bond |
| 5.00%, 03/23/22 | 600,000 | 644,076 |
| 3.00%, 03/17/23 | 500,000 | 532,167 |
| 4.00%, 01/22/24 | 400,000 | 447,158 |
| | | 1,623,401 |
| Republic of Korea 0.0% |
| Korea International Bond |
| 3.88%, 09/11/23 | 200,000 | 219,919 |
| Uruguay 0.0% |
| Uruguay Government International Bond |
| 8.00%, 11/18/22 | 51,000 | 55,503 |
| 4.50%, 08/14/24 | 150,000 | 165,551 |
| | | 221,054 |
| | | 12,474,774 |
| |
| Supranational* 3.6% |
| African Development Bank |
| 1.25%, 07/26/21 | 164,000 | 165,528 |
| 2.38%, 09/23/21 | 350,000 | 357,907 |
| 1.63%, 09/16/22 | 250,000 | 257,108 |
| 2.13%, 11/16/22 | 450,000 | 468,635 |
| 0.75%, 04/03/23 | 875,000 | 886,567 |
| 3.00%, 09/20/23 | 350,000 | 379,188 |
| Asian Development Bank |
| 1.75%, 06/08/21 | 300,000 | 303,551 |
| 2.13%, 11/24/21 | 500,000 | 511,713 |
| 2.00%, 02/16/22 | 900,000 | 923,314 |
| 1.88%, 02/18/22 | 100,000 | 102,410 |
| 0.63%, 04/07/22 | 1,100,000 | 1,107,133 |
| 1.88%, 07/19/22 | 1,000,000 | 1,031,070 |
| 1.88%, 08/10/22 | 100,000 | 103,201 |
| 1.75%, 09/13/22 | 600,000 | 618,558 |
| 1.63%, 01/24/23 | 300,000 | 309,993 |
| 2.75%, 03/17/23 | 550,000 | 585,027 |
| 0.25%, 07/14/23 | 750,000 | 750,360 |
| 2.63%, 01/30/24 | 600,000 | 647,802 |
| 1.50%, 10/18/24 | 900,000 | 944,059 |
| 2.00%, 01/22/25 | 200,000 | 214,190 |
| 0.63%, 04/29/25 | 1,250,000 | 1,263,475 |
| 0.38%, 09/03/25 (e) | 1,000,000 | 997,715 |
| Corp. Andina de Fomento |
| 2.13%, 09/27/21 | 250,000 | 253,559 |
| 3.25%, 02/11/22 | 100,000 | 103,186 |
| 4.38%, 06/15/22 | 150,000 | 158,760 |
| 2.75%, 01/06/23 | 100,000 | 103,926 |
| 2.38%, 05/12/23 | 300,000 | 310,295 |
| 3.75%, 11/23/23 | 150,000 | 162,643 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Council of Europe Development Bank |
| 1.75%, 09/26/22 | 200,000 | 206,272 |
| 2.63%, 02/13/23 | 250,000 | 264,464 |
| 0.25%, 06/10/23 | 150,000 | 150,035 |
| 2.50%, 02/27/24 | 150,000 | 161,379 |
| 1.38%, 02/27/25 | 150,000 | 156,572 |
| European Bank for Reconstruction & Development |
| 1.88%, 07/15/21 | 200,000 | 202,879 |
| 1.50%, 11/02/21 | 350,000 | 355,161 |
| 2.75%, 03/07/23 | 150,000 | 159,431 |
| 0.25%, 07/10/23 | 500,000 | 500,128 |
| 1.63%, 09/27/24 | 150,000 | 157,729 |
| 1.50%, 02/13/25 | 150,000 | 157,400 |
| 0.50%, 05/19/25 | 600,000 | 603,228 |
| European Investment Bank |
| 1.38%, 09/15/21 | 550,000 | 556,597 |
| 2.13%, 10/15/21 | 805,000 | 822,259 |
| 2.88%, 12/15/21 | 450,000 | 465,453 |
| 2.25%, 03/15/22 | 850,000 | 876,805 |
| 2.63%, 05/20/22 | 450,000 | 468,650 |
| 2.38%, 06/15/22 | 800,000 | 831,020 |
| 1.38%, 09/06/22 | 500,000 | 511,795 |
| 2.00%, 12/15/22 | 750,000 | 780,742 |
| 2.50%, 03/15/23 | 1,400,000 | 1,481,025 |
| 1.38%, 05/15/23 | 250,000 | 257,851 |
| 2.88%, 08/15/23 | 550,000 | 592,955 |
| 0.25%, 09/15/23 | 500,000 | 500,295 |
| 3.13%, 12/14/23 | 1,000,000 | 1,094,195 |
| 3.25%, 01/29/24 | 2,150,000 | 2,368,537 |
| 2.63%, 03/15/24 | 700,000 | 757,953 |
| 2.25%, 06/24/24 | 450,000 | 483,602 |
| 2.50%, 10/15/24 | 200,000 | 218,003 |
| 1.88%, 02/10/25 | 450,000 | 480,179 |
| 1.63%, 03/14/25 | 650,000 | 687,070 |
| 0.63%, 07/25/25 | 1,000,000 | 1,012,025 |
| Inter-American Development Bank |
| 1.88%, 07/23/21 | 200,000 | 202,943 |
| 1.25%, 09/14/21 | 700,000 | 707,423 |
| 2.13%, 01/18/22 | 300,000 | 307,844 |
| 1.75%, 04/14/22 | 550,000 | 563,618 |
| 1.75%, 09/14/22 | 100,000 | 103,097 |
| 2.50%, 01/18/23 | 750,000 | 790,297 |
| 0.50%, 05/24/23 | 1,250,000 | 1,259,362 |
| 3.00%, 10/04/23 | 950,000 | 1,030,541 |
| 0.25%, 11/15/23 (e) | 1,000,000 | 999,650 |
| 2.63%, 01/16/24 | 1,100,000 | 1,186,636 |
| 3.00%, 02/21/24 | 250,000 | 273,355 |
| 2.13%, 01/15/25 | 1,600,000 | 1,721,184 |
| 1.75%, 03/14/25 | 400,000 | 424,640 |
| 0.88%, 04/03/25 | 150,000 | 153,345 |
| 0.63%, 07/15/25 | 350,000 | 353,866 |
| International Bank for Reconstruction & Development |
| 2.25%, 06/24/21 | 300,000 | 304,947 |
| 2.75%, 07/23/21 | 600,000 | 613,584 |
| 1.38%, 09/20/21 | 1,050,000 | 1,062,710 |
| 2.00%, 01/26/22 | 950,000 | 973,759 |
| 1.63%, 02/10/22 | 600,000 | 612,123 |
| 2.13%, 07/01/22 | 500,000 | 517,440 |
| 1.88%, 10/07/22 | 450,000 | 465,642 |
| 2.13%, 02/13/23 | 150,000 | 156,963 |
| 1.75%, 04/19/23 | 250,000 | 260,018 |
| 1.88%, 06/19/23 | 200,000 | 209,194 |
| 3.00%, 09/27/23 | 1,500,000 | 1,626,495 |
| 2.50%, 03/19/24 | 550,000 | 593,117 |
| 1.50%, 08/28/24 | 550,000 | 575,902 |
| 2.50%, 11/25/24 | 700,000 | 763,756 |
| 1.63%, 01/15/25 | 1,500,000 | 1,581,367 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| 2.13%, 03/03/25 | 100,000 | 107,831 |
| 0.75%, 03/11/25 | 450,000 | 457,679 |
| 0.63%, 04/22/25 | 1,000,000 | 1,011,415 |
| 0.38%, 07/28/25 | 1,250,000 | 1,248,700 |
| 2.50%, 07/29/25 | 1,500,000 | 1,653,645 |
| International Finance Corp. |
| 1.13%, 07/20/21 | 175,000 | 176,409 |
| 2.00%, 10/24/22 | 200,000 | 207,636 |
| 2.88%, 07/31/23 | 400,000 | 430,570 |
| 1.38%, 10/16/24 | 350,000 | 365,178 |
| 0.38%, 07/16/25 | 750,000 | 749,932 |
| Nordic Investment Bank |
| 1.25%, 08/02/21 | 300,000 | 302,841 |
| 2.25%, 09/30/21 | 200,000 | 204,322 |
| 0.38%, 05/19/23 | 200,000 | 200,873 |
| 2.25%, 05/21/24 | 400,000 | 428,852 |
| The Asian Infrastructure Investment Bank |
| 2.25%, 05/16/24 | 400,000 | 428,300 |
| 0.50%, 05/28/25 | 500,000 | 501,530 |
| | | 61,213,093 |
| Total Government Related |
| (Cost $171,716,298) | | 175,314,629 |
| Security | Number
of Shares | Value ($) |
| Other Investment Company 1.1% of net assets |
| |
| Money Market Fund 1.1% |
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.04% (i) | 17,794,424 | 17,794,424 |
| Total Other Investment Company |
| (Cost $17,794,424) | | 17,794,424 |
| * | Supranational bonds represent the debt of international organizations or institutions such as the World Bank, the International Monetary Fund, regional multilateral development banks and others. |
| (a) | The effective maturity may be shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or as the result of embedded demand features (puts or calls). |
| (b) | Security converts to floating rate after the fixed-rate coupon period. |
| (c) | Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $10,863,258 or 0.6% of net assets. |
| (d) | Issuer is affiliated with the fund’s investment adviser. |
| (e) | Security or a portion of the security purchased on a delayed-delivery or when-issued basis. |
| (f) | Variable-rate security. |
| (g) | Interest rate is subject to adjustments from time to time if a nationally recognized statistical rating organization downgrades (or subsequently upgrades) the debt rating assigned to the bond. |
| (h) | Guaranteed by the Republic of Germany. |
| (i) | The rate shown is the 7-day yield. |
| | |
| REIT — | Real Estate Investment Trust |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Portfolio Holdings as of August 31, 2020 (continued)
The fund owns corporate bonds of an affiliate, The Charles Schwab Corp., since those corporate bonds are included in its index. Below is a summary of investment activities involving The Charles Schwab Corp. notes owned by the fund during the period ended August 31, 2020:
| |
Value at
08/31/19 | Gross
Purchases* | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
08/31/20 | Face
Amount at
08/31/20 | Interest Income
Earned |
| Charles Schwab Corp., 3.25%, 05/21/21 | $— | $151,795 | ($153,732) | $1,937 | $— | $— | — | $2,302 |
| Charles Schwab Corp., 2.65%, 01/25/23 | — | 76,281 | — | — | 2,780 | 79,061 | 75,000 | 789 |
| Charles Schwab Corp., 3.55%, 02/01/24 | — | 108,159 | — | — | 1,645 | 109,804 | 100,000 | 976 |
| Charles Schwab Corp., 4.20%, 03/24/25 | — | 221,137 | — | — | 11,228 | 232,365 | 200,000 | 2,112 |
| Charles Schwab Corp., 3.85%, 05/21/25 | — | 169,587 | — | — | 1,819 | 171,406 | 150,000 | 1,155 |
| Total | $— | $726,959 | ($153,732) | $1,937 | $17,472 | $592,636 | | $7,334 |
* Amount includes amortization of premiums and/or accretion of discounts.
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2020 (see financial note 2(a) for additional information):
| Description | Quoted Prices in
Active Markets for
Identical Assets
(Level 1) | Other Significant
Observable Inputs
(Level 2) | Significant
Unobservable Inputs
(Level 3) | Total | |
| Assets | | | | | |
| Corporates 1 | $— | $445,984,727 | $— | $445,984,727 | |
| Treasuries | — | 1,064,284,804 | — | 1,064,284,804 | |
| Government Related1 | — | 175,314,629 | — | 175,314,629 | |
| Other Investment Company1 | 17,794,424 | — | — | 17,794,424 | |
| Total | $17,794,424 | $1,685,584,160 | $— | $1,703,378,584 | |
| 1 | As categorized in Portfolio Holdings. |
Fund investments in underlying mutual funds are classified as Level 1, without consideration to the classification level of the investments held by the underlying mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Statement of Assets and Liabilities
As of August 31, 2020
| Assets |
| Investments in affiliated issuer, at value (cost $575,164) | | $592,636 |
| Investments in unaffiliated issuers, at value (cost $1,662,816,460) | | 1,702,785,948 |
| Cash | | 1,596,903 |
| Receivables: | | |
| Investments sold | | 49,364,395 |
| Fund shares sold | | 21,010,930 |
| Interest | | 8,009,748 |
| Dividends | + | 784 |
| Total assets | | 1,783,361,344 |
| Liabilities |
| Payables: | | |
| Investments bought | | 83,601,981 |
| Investments bought — delayed-delivery | | 3,187,112 |
| Investment adviser fees | | 81,754 |
| Fund shares redeemed | | 1,527,184 |
| Distributions to shareholders | + | 624,674 |
| Total liabilities | | 89,022,705 |
| Net Assets |
| Total assets | | 1,783,361,344 |
| Total liabilities | – | 89,022,705 |
| Net assets | | $1,694,338,639 |
| Net Assets by Source | | |
| Capital received from investors | | 1,650,271,466 |
| Total distributable earnings | | 44,067,173 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $1,694,338,639 | | 163,076,341 | | $10.39 |
| | | | | |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Statement of Operations
For the period September 1, 2019 through August 31, 2020
| Investment Income |
| Interest received from affiliated issuer | | $7,334 |
| Interest received from unaffiliated issuers | | 21,614,066 |
| Dividends received from unaffiliated issuers | + | 49,512 |
| Total investment income | | 21,670,912 |
| Expenses |
| Investment adviser fees | | 665,222 |
| Total expenses | – | 665,222 |
| Net investment income | | 21,005,690 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on affiliated issuer | | 1,937 |
| Net realized gains on unaffiliated investments | + | 7,070,250 |
| Net realized gains | | 7,072,187 |
| Net change in unrealized appreciation (depreciation) on affiliated issuer | | 17,472 |
| Net change in unrealized appreciation (depreciation) on unaffiliated investments | + | 20,973,055 |
| Net change in unrealized appreciation (depreciation) | + | 20,990,527 |
| Net realized and unrealized gains | | 28,062,714 |
| Increase in net assets resulting from operations | | $49,068,404 |
Schwab Taxable Bond Funds | Annual Report
Schwab Short-Term Bond Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
| Operations | |
| | 9/1/19-8/31/20 | 9/1/18-8/31/19 |
| Net investment income | | $21,005,690 | $16,642,050 |
| Net realized gains (losses) | | 7,072,187 | (1,090,017) |
| Net change in unrealized appreciation (depreciation) | + | 20,990,527 | 26,217,817 |
| Increase in net assets from operations | | 49,068,404 | 41,769,850 |
| Distributions to Shareholders | |
| Total distributions | | ($21,004,922) | ($16,642,065) |
| Transactions in Fund Shares | | | |
| | | 9/1/19-8/31/20 | 9/1/18-8/31/19 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 120,290,629 | $1,236,682,012 | 52,440,349 | $519,171,340 |
| Shares reinvested | | 1,412,346 | 14,453,769 | 1,246,712 | 12,386,838 |
| Shares redeemed | + | (45,172,807) | (461,824,744) | (20,417,924) | (202,012,899) |
| Net transactions in fund shares | | 76,530,168 | $789,311,037 | 33,269,137 | $329,545,279 |
| Shares Outstanding and Net Assets | | | |
| | | 9/1/19-8/31/20 | 9/1/18-8/31/19 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 86,546,173 | $876,964,120 | 53,277,036 | $522,291,056 |
| Total increase | + | 76,530,168 | 817,374,519 | 33,269,137 | 354,673,064 |
| End of period | | 163,076,341 | $1,694,338,639 | 86,546,173 | $876,964,120 |
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
1. Business Structure of the Funds:
Each of the funds in this report is a series of Schwab Investments (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the funds discussed in this report, which are highlighted:
| SCHWAB INVESTMENTS (ORGANIZED OCTOBER 26, 1990) |
| Schwab Treasury Inflation Protected Securities Index Fund | Schwab California Tax-Free Bond Fund |
| Schwab U.S. Aggregate Bond Index Fund | Schwab High Yield Municipal Bond Fund |
| Schwab Short-Term Bond Index Fund | Schwab 1000 Index® Fund |
| Schwab Tax-Free Bond Fund | Schwab Global Real Estate Fund |
Each fund in this report offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds’ Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The funds invest in certain other investment companies (underlying funds). For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
(a) Security Valuation:
Under procedures approved by the Board, the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. Among other things, these procedures allow the funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:
• Bonds and notes: Fixed income investments are generally valued using an evaluated price at the mid-point of the bid/ask spread provided by an approved, independent pricing service (mid-price). To determine the evaluated mid-price, a pricing service may use a variety of techniques and inputs. Techniques may include, but are not limited to, spread models that calculate an investment-specific price relative to a benchmark or yield curve models that establish a price based on yields of comparable bonds along a range of maturities. Inputs differ by valuation approach and technique, as appropriate, and examples of inputs may include, but are not limited to, interest rates, market conditions, comparable bonds, market trades, projected cash flows, credit reviews and issuer news.
• Securities for which no quoted value is available: The Board has adopted procedures to fair value each fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Each fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
Financial Notes (continued)
2. Significant Accounting Policies (continued):
regularly reviews these inputs and assumptions to calibrate the valuations. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the funds pursuant to the valuation procedures.
• Short-term securities (60 days or less to maturity): Securities with remaining maturities of 60 days or less are generally valued at an evaluated price; however, such securities may be valued at their amortized cost if it approximates the security’s fair value.
• Underlying funds: Mutual funds are valued at their respective NAVs.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the funds disclose the fair value of their investments in a hierarchy that prioritizes the significant inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If the funds determine that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
• Level 1—quoted prices in active markets for identical securities—Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities. Investments in mutual funds are valued daily at their NAVs, which are classified as Level 1 prices, without consideration to the classification level of the specific investments held by an underlying fund.
• Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)—Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations.
• Level 3—significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments)—Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the funds’ results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the funds’ investments as of August 31, 2020 are disclosed in the Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Inflation-Protected Securities: The Schwab Treasury Inflation Protected Securities Index Fund invests in inflation-protected securities. Inflation-protected securities are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these instruments is generally fixed at issuance at a rate lower than typical bonds or notes. Over the life of an inflation-indexed instrument, however, interest will be paid based on a principal value, which is adjusted for any inflation or deflation. Any increase or decrease in the principal amount of an inflation-protected security will be included as an addition or reduction to interest income on the Statement of Operations, even though investors do not receive their principal until maturity.
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
Financial Notes (continued)
2. Significant Accounting Policies (continued):
TBA Commitments: The funds may enter into “TBA” (to-be-announced) commitments to purchase or sell securities for a fixed price at a future date. Payments or proceeds of TBA commitments are not delivered until the contractual settlement date. Unsettled TBA commitments are valued at the current fair value generally according to the procedures described above in the Security Valuation section. The funds’ use of TBA commitments may cause the funds to experience higher portfolio turnover and higher transaction costs.
Agency MBS and TBA Transactions: The Treasury Market Practices Group (TMPG) of the Federal Reserve Bank of New York recommended the margining of certain forward-settling Agency MBS transactions to reduce counterparty credit risk. The TMPG recommended market participants exchange two-way variation margin on a regular basis. The Schwab U.S. Aggregate Bond Index Fund posts and receives variation margin with certain counterparties in instances where the unrealized gain/loss on such transactions exceeds certain pre-determined thresholds. The variation margin, if any, is disclosed on the Statement of Assets and Liabilities.
Delayed Delivery Transactions and When-Issued Securities: During the period, certain funds transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the funds’ Portfolio Holdings. The funds may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the funds identify securities as segregated in their records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract’s terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Securities Lending: Under the trust’s Securities Lending Program, a fund (lender) may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating under Rule 2a-7 of the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the funds or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. Securities lending income, as disclosed in each fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. The aggregate fair value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan. Securities lending fees paid to the unaffiliated lending agents start at 10% of gross lending revenue, with subsequent breakpoints to a low of 7.5%. 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 Charles Schwab Investment Management, Inc. (CSIM or the investment adviser) or any affiliate of CSIM.
As of August 31, 2020, the funds had no securities on loan.
(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. Gains and losses from paydowns on mortgage and asset backed securities are recorded as adjustments to interest income.
(d) Investment Income:
Interest income is recorded as it accrues. If a fund buys a debt security at a discount (less than face value) or a premium (more than face value), it amortizes premiums and accretes discounts from the purchase settlement date up to maturity. The fund then increases (in the case of discounts) or reduces (in the case of premiums) the income it records from the security. Certain securities
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
Financial Notes (continued)
2. Significant Accounting Policies (continued):
may be callable (meaning that the issuer has the option to pay it off before its maturity date). The fund amortizes the premium and accretes the discount on each callable security to the security’s maturity date, except when the purchase price is higher than the call price at the security’s call date (in which case the premium is amortized to the call date).
(e) Expenses:
Pursuant to an Amended and Restated Investment Advisory Agreement between CSIM and the Schwab Treasury Inflation Protected Securities Index Fund and an Investment Advisory Agreement between CSIM and the Schwab U.S. Aggregate Bond Index Fund and Schwab Short-Term Bond Index Fund, CSIM pays the operating expenses of the funds, excluding acquired fund fees and expenses, 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.
(f) Agency Mortgage-Backed Securities Charges:
Due to market conditions or other reasons, delivery of U.S. Treasury securities, agency debt and agency mortgage-backed securities may not occur on a timely basis. In these instances, a fund may fail to receive a security purchased causing the fund to be unable to deliver a security sold. The TMPG recommends voluntary fail charges when securities are not delivered as agreed by the parties. These fails charges are included in net realized gains (losses) on each fund’s Statement of Operations, if any.
(g) Distributions to Shareholders:
The funds, except for the Schwab Treasury Inflation Protected Securities Index Fund, declare distributions from net investment income, if any, every day they are open for business. These distributions, which are substantially equal to a fund’s net investment income for that day, are paid out to shareholders once a month. The Schwab Treasury Inflation Protected Securities Index Fund declares and pays distributions from net investment income, if any, quarterly. All the funds make distributions from net realized capital gains, if any, once a year.
(h) 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.
(i) 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.
(j) Indemnification:
Under the funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss attributable to these arrangements to be remote.
(k) Recent Accounting Standards:
In March 2020, the FASB issued Accounting Standards Update “Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848)” (ASU 2020-04), which provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank-offered based reference rates at the end of 2021. The temporary relief provided is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. At this time, management believes the adoption of ASU 2020-04 will not have a material impact to the financial statements.
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
Financial Notes (continued)
3. Risk Factors:
The funds invest mainly in corporate bonds, mortgage-backed and asset-backed securities, government or municipal obligations, and other debt securities. These investments may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below:
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, they follow the securities included in their respective index during upturns as well as downturns. Because of their indexing strategies, the funds do not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of a fund’s expenses, the fund’s performance may be below that of its index.
Interest Rate Risk. Interest rates rise and fall over time. As with any investment whose yield reflects current interest rates, a fund’s yield will change over time. During periods when interest rates are low, a fund’s yield (and total return) also may be low. Changes in interest rates also may affect a fund’s share price: a rise in interest rates generally causes a fund’s share price to fall. The longer a fund’s portfolio duration, the more sensitive to interest rate movements its share price is likely to be. Also, a change in a central bank’s monetary policy or economic conditions, among other things, may result in a change in interest rates, which could have sudden and unpredictable effects on the markets and significantly impact the value of fixed-income securities in which a fund invests.
Sampling Index Tracking Risk. An index fund may not fully replicate its respective index and may hold securities not included in the respective index. As a result, the fund is subject to the risk that the investment adviser’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. Because the fund utilizes a sampling approach it may not track the return of the index as well as it would if the fund purchased all of the securities in the index.
Tracking Error Risk. As 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.
Credit Risk. A decline in the credit quality of an issuer or guarantor of a portfolio investment could cause the funds to lose money or underperform. The funds could lose money if, due to a decline in credit quality, the issuer or guarantor of a portfolio investment fails to make, or is perceived as being unable or unwilling to make, timely principal or interest payments or otherwise honor its obligations.
Liquidity Risk. The funds may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the funds may have to sell them at a loss.
Concentration Risk. To the extent that a fund’s or the index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector or asset class, the fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more vulnerable to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector or asset class.
Prepayment and Extension Risk. The funds’ portfolio investments are subject to the risk that the securities may be paid off earlier or later than expected. Either situation could cause the funds to hold securities paying lower-than-market rates of interest, which could hurt the funds’ yield or share price.
Non-U.S. Issuer Risk. Certain funds may invest in U.S.-registered, dollar-denominated bonds of non-U.S. corporations, governments, agencies and supra-national entities. A fund’s investments in bonds of non-U.S. issuers may involve certain risks that are greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may be heightened in connection with bonds issued by non-U.S. corporations and entities in emerging markets.
Mortgage-Backed and Mortgage Pass-Through Securities Risk. Certain of the mortgage-backed securities in which a fund may invest are not backed by the full faith and credit of the U.S. government and there can be no assurance that the U.S. government would provide financial support to its agencies or instrumentalities where it was not obligated to do so. Mortgage-backed securities
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
Financial Notes (continued)
3. Risk Factors (continued):
tend to increase in value less than other debt securities when interest rates decline, but are subject to similar or greater risk of decline in fair value during periods of rising interest rates. Because of prepayment and extension risk, mortgage-backed securities react differently to changes in interest rates than other bonds. Small movements in interest rates — both increases and decreases — may quickly and significantly affect the value of certain mortgage-backed securities. Transactions in mortgage pass-through securities often occur through to-be-announced (TBA) transactions. Default by or bankruptcy of a counterparty to a TBA transaction could expose a fund to possible losses because of an adverse market action, expenses, or delays in connection with the purchase or sale of the pools of mortgage pass-through securities specified in the TBA transaction.
Mortgage Dollar Rolls Risk. Mortgage dollar rolls are transactions in which a fund sells mortgage-backed securities to a dealer and simultaneously agrees to repurchase similar securities in the future at a predetermined price. A fund’s mortgage dollar rolls could lose money if the price of the mortgage-backed securities sold falls below the agreed upon repurchase price, or if the counterparty is unable to honor the agreement.
Derivatives Risk. Certain funds may invest in derivative instruments. The principal types of derivatives used by the funds are futures contracts. A futures contract is an agreement to buy or sell a financial instrument at a specific price on a specific day. A fund’s use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) could cause a 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 market risk, credit risk, liquidity risk and leverage risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to lack of availability risk, valuation risk, correlation risk and tax risk. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause a 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 cause the fund to lose more than the initial amount invested.
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.
Inflation-Protected Security Risk. The value of inflation-protected securities, including TIPS, generally will fluctuate in response to changes in “real” interest rates, generally decreasing when real interest rates rise and increasing when real interest rates fall. Real interest rates represent nominal (or stated) interest rates reduced by the expected impact of inflation. In addition, interest payments on inflation-indexed securities will generally vary up or down along with the rate of inflation.
Leverage Risk. Certain fund transactions, such as derivatives transactions, TBA transactions and mortgage dollar rolls, may give rise to a form of leverage and may expose the funds to greater risk. Leverage tends to magnify the effect of any decrease or increase in the value of a fund’s portfolio securities. 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.
Money Market Fund Risk. The funds may invest in underlying money market funds that either seek to maintain a stable $1.00 net asset value (“stable share price money market funds”) or that have a share price that fluctuates (“variable share price money market funds”). Although an underlying stable share price money market fund seeks to maintain a stable $1.00 net asset value, it is possible to lose money by investing in such a money market fund. Because the share price of an underlying variable share price money market fund will fluctuate, when a fund sells the shares it owns they may be worth more or less than what the fund originally paid for them. In addition, neither type of money market fund is designed to offer capital appreciation. Certain underlying money market funds may impose a fee upon the sale of shares or may temporarily suspend the ability to sell shares if such fund’s liquidity falls below required minimums.
Portfolio Turnover Risk (Schwab U.S. Aggregate Bond Index Fund only). A fund may engage in frequent trading of its portfolio securities in connection with its tracking of the index, primarily due to the fund rolling over its positions in TBAs as it tracks the portion of the index represented by mortgage-backed securities. A higher portfolio turnover rate may result in increased transaction costs, which may lower a fund’s performance. A higher portfolio turnover rate can also result in an increase in taxable capital gains distributions to a fund’s shareholders.
Please refer to the funds’ prospectuses for a more complete description of the principal risks of investing in the funds.
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
Financial Notes (continued)
4. Affiliates and Affiliated Transactions:
Investment Adviser
CSIM, a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to an Advisory Agreement between it and the trust.
For its advisory and administrative services to the funds, CSIM is entitled to receive an annual fee, payable monthly, based on each fund’s average daily net assets as follows:
Schwab
Treasury Inflation
Protected Securities
Index Fund | Schwab
U.S. Aggregate Bond
Index Fund | Schwab
Short-Term Bond
Index Fund |
| 0.05% | 0.04% | 0.06% |
Investments from Affiliates
Certain funds in the Fund Complex (for definition refer to Trustees and Officers section) may own shares of other funds in the Fund Complex. The table below reflects the percentage of shares of each fund in this report that are owned by other funds in the Fund Complex as of August 31, 2020, as applicable:
| | Underlying Funds |
| | Schwab
Treasury Inflation
Protected Securities
Index Fund | Schwab
U.S. Aggregate Bond
Index Fund | Schwab
Short-Term Bond
Index Fund | | | |
| Schwab MarketTrack Growth Portfolio | —% | 2.7% | —% | | | |
| Schwab MarketTrack Balanced Portfolio | —% | 4.0% | 0.3% | | | |
| Schwab MarketTrack Conservative Portfolio | —% | 3.6% | 0.2% | | | |
| Schwab Target 2010 Fund | 0.3% | 0.3% | 0.3% | | | |
| Schwab Target 2015 Fund | 0.3% | 0.4% | 0.4% | | | |
| Schwab Target 2020 Fund | 2.2% | 2.7% | 2.8% | | | |
| Schwab Target 2025 Fund | 0.9% | 2.1% | 2.1% | | | |
| Schwab Target 2030 Fund | 0.3% | 2.5% | 2.6% | | | |
| Schwab Target 2035 Fund | —% | 0.9% | 0.9% | | | |
| Schwab Target 2040 Fund | —% | 1.3% | 1.3% | | | |
| Schwab Target 2045 Fund | —% | 0.1% | 0.1% | | | |
| Schwab Target 2050 Fund | —% | 0.1% | 0.1% | | | |
| Schwab Target 2055 Fund | —% | 0.0%* | 0.0%* | | | |
| Schwab Target 2060 Fund | —% | 0.0%* | 0.0%* | | | |
| Schwab Monthly Income Fund — Moderate Payout | —% | 0.5% | —% | | | |
| Schwab Monthly Income Fund — Enhanced Payout | —% | 1.2% | —% | | | |
| Schwab Monthly Income Fund — Maximum Payout | —% | 1.4% | —% | | | |
| Schwab Balanced Fund | —% | 4.6% | —% | | | |
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions with other funds in the Fund Complex. All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The funds had no interfund borrowing or lending activity during the period.
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
Financial Notes (continued)
5. Board of Trustees:
The Board may include people who are officers and/or directors of CSIM or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of these interested persons for their services as trustees. The independent trustees are paid by CSIM. For more information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.
6. Borrowing from Banks:
During the period, the funds were participants with other funds in the Fund Complex in a joint, syndicated, committed $750 million line of credit (the Syndicated Credit Facility), which matured on October 3, 2019. On October 3, 2019, the Syndicated Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on October 1, 2020. On October 1, 2020, the Syndicated Credit Facility was further amended to run for a new 364 day period with a line of credit of $850 million, maturing on September 30, 2021. Under the terms of the Syndicated Credit Facility, in addition to CSIM paying the interest charged on any borrowings by a fund, CSIM 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 $500 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, which matured on November 29, 2019. On November 29, 2019, the Uncommitted Credit Facility was amended to run for a new 364 day period, which was scheduled to mature on November 27, 2020. However, on October 1, 2020, the Uncommitted Credit Facility was amended to run for a new 364 day period with a line of credit of $400 million, maturing on September 30, 2021. Under the terms of the Uncommitted Credit Facility, CSIM pays interest on the amount a fund borrows. There were no borrowings from either line of credit during the period.
All of the funds also have access to custodian overdraft facilities. The funds may have utilized the overdraft facility and incurred an interest expense, which is paid by CSIM. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
7. Purchases and Sales/Maturities of Investment Securities:
For the period ended August 31, 2020, purchases and sales/maturities of securities (excluding short-term obligations) were as follows:
| | Purchases of Long-Term
U.S. Government
Securities* | Purchases of Other
Long-Term Securities | Total Purchases of
Long-Term Securities |
| Schwab Treasury Inflation Protected Securities Index Fund | $731,115,756 | $— | $731,115,756 |
| Schwab U.S. Aggregate Bond Index Fund | 3,740,330,462 | 827,187,272 | 4,567,517,734 |
| Schwab Short-Term Bond Index Fund | 1,126,474,627 | 390,767,386 | 1,517,242,013 |
| | Sales/Maturities of
Long-Term U.S. Government
Securities* | Sales/Maturities of
Other Long-Term Securities | Total Sales/Maturities of
Long-Term Securities |
| Schwab Treasury Inflation Protected Securities Index Fund | $322,241,311 | $— | $322,241,311 |
| Schwab U.S. Aggregate Bond Index Fund | 2,744,926,214 | 230,654,258 | 2,975,580,472 |
| Schwab Short-Term Bond Index Fund | 610,563,847 | 114,235,398 | 724,799,245 |
| * | Includes securities guaranteed by U.S. Government Agencies. |
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
Financial Notes (continued)
8. Federal Income Taxes:
As of August 31, 2020, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
| | Schwab
Treasury Inflation
Protected Securities
Index Fund | | Schwab
U.S. Aggregate
Bond Index Fund | | Schwab
Short-Term Bond
Index Fund |
| Tax cost | $1,300,326,291 | | $4,621,995,635 | | $1,663,584,185 |
| Gross unrealized appreciation | $135,151,206 | | $269,796,790 | | $40,083,823 |
| Gross unrealized depreciation | (7,573,121) | | (6,511,141) | | (289,424) |
| Net unrealized appreciation (depreciation) | $127,578,085 | | $263,285,649 | | $39,794,399 |
As of August 31, 2020, the components of distributable earnings on a tax basis were as follows:
| | Schwab
Treasury Inflation
Protected Securities
Index Fund | | Schwab
U.S. Aggregate
Bond Index Fund | | Schwab
Short-Term Bond
Index Fund |
| Undistributed ordinary income | $6,081,757 | | $1,625,306 | | $2,211,066 |
| Undistributed long-term capital gains | 1,027,555 | | 5,441,247 | | 2,686,382 |
| Net unrealized appreciation (depreciation) on investments | 127,578,085 | | 263,285,649 | | 39,794,399 |
| Total | $134,687,397 | | $270,352,202 | | $44,691,847 |
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 appreciation or depreciation differences, as applicable.
Net investment income and realized capital gains and losses may differ for financial statement and tax purposes primarily due to differing treatments of paydown gains and losses and sales on TIPS.
Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of August 31, 2020, the funds had no capital loss carryforwards available to offset future net capital gains.
For the fiscal year ended August 31, 2020, the funds had capital loss carryforwards utilized as follows:
| | Schwab
Treasury Inflation
Protected Securities
Index Fund | Schwab
U.S. Aggregate
Bond Index Fund | Schwab
Short-Term Bond
Index Fund |
| Capital loss carryforwards utilized | $1,025,834 | $13,995,864 | $2,772,420 |
The tax basis components of distributions paid during the current and prior fiscal years ended were as follows:
| | Schwab
Treasury Inflation
Protected Securities
Index Fund
| Schwab U.S.
Aggregate
Bond Index
Fund
| Schwab
Short-Term Bond
Index Fund |
| Current Period Distributions | | | |
| Ordinary income | $14,928,816 | $93,281,965 | $21,004,922 |
| Prior Period Distributions | | | |
| Ordinary income | $19,431,771 | $72,211,474 | $16,642,065 |
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 on the financial statements.
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
Financial Notes (continued)
8. Federal Income Taxes (continued):
Permanent book and tax basis differences, which are mainly due to differing treatments of paydown gains and losses and amortization of bond discounts and premiums, may result in reclassifications between components of net assets as required. The adjustments will have no impact on net assets or the results of operations.
As of August 31, 2020, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the fiscal year ended August 31, 2020, the funds did not incur any interest or penalties.
9. Independent Registered Public Accounting Firm:
On June 8, 2020, the Audit, Compliance and Valuation Committee of the Board approved, and on June 9, 2020, the Board approved, Deloitte & Touche LLP as the independent registered accounting firm of the Schwab Funds Complex for fiscal periods ending after June 8, 2020.
On June 8, 2020, PricewaterhouseCoopers LLP (the “Prior Auditor”) resigned as the independent registered public accounting firm of the Schwab Funds Complex. The Prior Auditor’s reports on the financial statements of the funds for the past two fiscal years, the years ended August 31, 2018 and August 31, 2019, did not contain an adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles. During the last two fiscal year-ends and through June 8, 2020, there were no (1) disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its reports on the funds’ financial statements for such periods; or (2) “reportable events,” as that term is defined in Item 304 (a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934.
10. Subsequent Events:
Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Schwab Investments and Shareholders of Schwab Treasury Inflation Protected Securities Index Fund, Schwab U.S. Aggregate Bond Index Fund, and Schwab Short-Term Bond Index Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities, including the portfolio holdings, of Schwab Treasury Inflation Protected Securities Index Fund, Schwab U.S. Aggregate Bond Index Fund, and Schwab Short-Term Bond Index Fund (the “Funds”), three of the funds constituting Schwab Investments, as of August 31, 2020, and the related statements of operations, statements of changes in net assets, and the financial highlights for the year then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2020, and the results of their operations, the changes in their net assets, and the financial highlights for the year then ended in conformity with accounting principles generally accepted in the United States of America. The statements of changes for the year ended August 31, 2019 and the financial highlights for each of the four years or periods in the period ended August 31, 2019 were audited by other auditors, whose report, dated October 17, 2019, expressed an unqualified opinion on such statements of changes in net assets and financial highlights.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2020, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
Denver, Colorado
October 19, 2020
We have served as the auditor of one or more investment companies in the Schwab Funds Complex since 2020.
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
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 (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 and administration agreement (the Agreement) between Schwab Investments (the Trust) and Charles Schwab Investment Management, Inc. (CSIM) with respect to the existing funds in the Trust, including Schwab Treasury Inflation Protected Securities Index Fund, Schwab U.S. Aggregate Bond Index Fund and Schwab Short-Term Bond Index Fund (the Funds), and to review certain other agreements pursuant to which CSIM 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 CSIM, including information about CSIM’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 CSIM seeking certain relevant information. The responses by CSIM 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 CSIM 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 11, 2020 and June 9, 2020, and approved the renewal of the Agreement with respect to the Funds for an additional one-year term at the meeting on June 9, 2020 called for the purpose of voting on such approval.1
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 CSIM and its affiliates dedicated to the Funds; |
| 2. | each Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data; |
| 3. | each Fund’s expenses and how those expenses compared to those of certain other similar mutual funds; |
| 4. | the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to each Fund, including both direct and indirect benefits accruing to CSIM 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 CSIM to the Funds and the resources of CSIM and its affiliates dedicated to the Funds. In this regard, the Trustees evaluated, among other things, CSIM’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 CSIM 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, fund accounting and custody, and vendor and risk oversight. The Trustees also considered investments CSIM has made in its infrastructure, including modernizing CSIM’s technology and use of data, increasing expertise in key areas (including portfolio management and trade operations), and improving business continuity, cybersecurity, due diligence, risk management processes, and information security programs, which are designed to provide enhanced services to the Funds and their shareholders. The Trustees also considered Schwab’s wide range of products, services, and channel alternatives such as investment research tools and an array of
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
account features that benefit Fund shareholders who are brokerage clients of Schwab. Finally, the Trustees also considered Schwab’s reputation as a full service brokerage firm and its overall financial condition, including Schwab’s ability to maintain consistent operations and service levels during recent periods of remote work and market volatility. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by CSIM to the Funds and the resources of CSIM 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 mutual funds and applicable indices/benchmarks, in light of total return, yield, if applicable, and market trends, as well as in consideration of each Fund’s investment style and strategy attributes and disclosures. 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 each Fund’s demonstrated performance in tracking its benchmark index. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and adviser 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, with respect to each Fund, the performance of such 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 net operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. CSIM reported to the Board, and the Board took into account, the risk assumed by CSIM in the development of products and provision of services as well as the competitive marketplace for financial products. The Trustees also considered fees charged by CSIM to other mutual funds and to other types of accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts, and any differences in the nature and scope of the services CSIM provides to these other accounts, as well as differences in the market for these types of accounts. Following such evaluation, the Board concluded,
within the context of its full deliberations, that, with respect to each Fund, the expenses of such Fund are reasonable and supported renewal of the Agreement with respect to such Fund.
Profitability. The Trustees considered the compensation flowing to CSIM and its affiliates, directly or indirectly and reviewed profitability on a pre-tax basis, without regard to distribution expenses. In this connection, the Trustees reviewed management’s profitability analyses. The Trustees also reviewed profitability of CSIM 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 fixed costs across the Funds and other funds in the complex. The Trustees also considered any other benefits derived by CSIM from its relationship with the Funds, such as whether, by virtue of its management of the Funds, CSIM 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 and justified in light of the quality of all services rendered to the Funds by CSIM and its affiliates. The Trustees noted that CSIM 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 CSIM 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, 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 CSIM in CSIM’s infrastructure, including modernizing CSIM’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; (ii) graduated investment advisory fee schedules or unitary fee structures, fee waivers, or expense caps by CSIM and its affiliates for those funds in the Schwab fund complex with such features; and (iii) pricing a fund to scale and keeping overall expenses down as the fund grows. The Trustees acknowledged that CSIM has shared any economies of scale with the Funds by investing in CSIM’s infrastructure, as discussed above, over time and that CSIM’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Funds continues to increase as a result of regulatory or other developments. Based on this evaluation, the Board
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
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 such services and expenses and such other matters as the Trustees have considered to be relevant in the exercise of their reasonable judgment.
| 1 | The meeting on June 9, 2020 was held telephonically in reliance on exemptive relief from the in-person voting requirement under the 1940 Act as provided by the Securities and Exchange Commission. |
Schwab Taxable Bond Funds | Annual Report
Schwab Taxable Bond Funds
Trustees and Officers
The tables below give information about the trustees and officers of Schwab Investments, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 100 funds.
The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-877-824-5615.
| Independent Trustees |
Name, Year of Birth, and
Position(s) with the trust
(Terms of office, and
length of Time Served1) | Principal Occupations
During the Past Five Years | Number of
Portfolios in
Fund Complex
Overseen by
the Trustee | Other Directorships |
Robert W. Burns
1959
Trustee
(Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor (Jan. 2009 – present). Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) (investment management firm) and President, PIMCO Funds. | 100 | None |
John F. Cogan
1947
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust since 2010; Schwab Strategic Trust since 2016) | Senior Fellow (Oct. 1979 – present), The Hoover Institution at Stanford University (public policy think tank); Senior Fellow (2000 – present), Stanford Institute for Economic Policy Research; Professor of Public Policy (1994 – 2015), Stanford University. | 100 | Director (2005 – present), Gilead Sciences, Inc. |
Nancy F. Heller
1956
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services). | 100 | None |
Stephen Timothy Kochis
1946
Trustee
(Trustee of Schwab Strategic Trust since 2012; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | CEO and Owner (May 2012 – present), Kochis Global (wealth management consulting). | 100 | None |
Schwab Taxable Bond Funds | Annual Report
Annual Report | August 31, 2020
Schwab Tax-Free Bond Funds
Schwab Tax-Free Bond Fund
Schwab California Tax-Free Bond Fund
| New Notice Regarding Shareholder Report Delivery Options |
| Beginning on January 1, 2021, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary (such as a bank or broker-dealer). Instead, the reports will be made available on a fund’s website www.schwabfunds.com/schwabfunds_prospectus, and you will be notified by mail each time a report is posted and the mailing will provide a website link to access the report. You will continue to receive other fund regulatory documents (such as prospectuses or supplements) in paper unless you have elected to receive all fund documents electronically. |
| If you would like to receive a fund’s future shareholder reports in paper free of charge after January 1, 2021, you can make that request: |
| • If you invest through Charles Schwab & Co, Inc. (broker-dealer), by calling 1-866-345-5954 and using the unique identifier attached to this mailing; |
| • If you invest through another financial intermediary (such as a bank or broker-dealer) by contacting them directly; or |
| • If owned directly through a fund by calling 1-800-407-0256. |
| If you already receive shareholder reports and other fund documents electronically, you will not be affected by this change and you need not take any action. |
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Two ways investors can include bond funds in an asset allocation strategy.
Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM)
Distributor: Charles Schwab & Co., Inc. (Schwab)
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Funds
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 may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabfunds.com/schwabfunds_prospectus.
| Total Returns for the 12 Months Ended August 31, 2020 |
| Schwab Tax-Free Bond Fund (Ticker Symbol: SWNTX) | 2.52% |
| Bloomberg Barclays Municipal 3-15 Year Blend Index1 | 3.50% |
| S&P National AMT-Free Municipal Bond Index | 3.01% |
| Fund Category: Morningstar Municipal National Intermediate Bond* | 2.36% |
| Performance Details | pages 8-10 |
| |
| Schwab California Tax-Free Bond Fund (Ticker Symbol: SWCAX) | 2.54% |
| Bloomberg Barclays California Municipal 3-15 Year Blend Index2 | 3.61% |
| S&P California AMT-Free Municipal Bond Index | 3.50% |
| Fund Category: Morningstar Municipal California Intermediate/Short Bond* | 1.90% |
| Performance Details | pages 11-13 |
All total return figures 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.
The first index listed for each fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
Expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, a fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
| * | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 1 | Effective January 1, 2020, the fund changed its benchmark index from the S&P National AMT-Free Municipal Bond Index to the Bloomberg Barclays Municipal 3-15 Year Blend Index. Charles Schwab Investment Management, Inc. believes the benchmark index change provides a more appropriate comparison for evaluating the fund’s performance. |
| 2 | Effective January 1, 2020, the fund changed its benchmark index from the S&P California AMT-Free Municipal Bond Index to the Bloomberg Barclays California Municipal 3-15 Year Blend Index. Charles Schwab Investment Management, Inc. believes the benchmark index change provides a more appropriate comparison for evaluating the fund’s performance. The Bloomberg Barclays California Municipal 3-15 Year Blend Index was established effective January 1, 2020. Performance shown prior to January 1, 2020 is based on a subset of securities included in the Bloomberg Barclays Municipal 3-15 Year Blend Index. |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Funds
Jonathan de St. Paer
President of Charles Schwab
Investment Management, Inc.
and the funds covered
in this report.
Dear Shareholder,
The 12-month reporting period ended August 31, 2020 has been witness to a number of historic events that have significantly impacted lives on both a personal and economic level. This period was also one of the most volatile investing environments on record. Up until the last week of February, the outlook for bond yields was favorable. U.S. stock market performance was also strong, with the longest bull market cycle in history continuing and major equity indices hitting new highs. But the rapid spread of COVID-19 around the world brought many economies to an abrupt halt. A new record was set for the fastest U.S. market decline, with the S&P 500® Index, a bellwether for the overall U.S. stock market, dropping 30% over just 22 trading days in late February and early March. Against this backdrop, the U.S. Federal Reserve cut interest rates to near zero in March and the bond market generally saw prices rise as yields on government and U.S. Treasury securities pushed down to historic lows. (Bond yields and bond prices typically move in opposite directions.) Conversely, demand for municipal bonds fell sharply amid downgrade concerns, creating spikes in yields and reductions in liquidity, before later stabilizing. By the end of the reporting period, however, stocks had rebounded. Major equity indices reached new highs in August, while bond yields remained relatively low. In this environment, the broad U.S. municipal bond market, as measured by the Bloomberg Barclays General Municipal Bond Index, returned 3.2% during the 12-month reporting period ended August 31, 2020. In contrast, the S&P 500® Index returned 21.9% during the same period.
This varied performance of asset classes is a good reminder of the importance of diversification. At Charles Schwab Investment Management, we believe that maintaining exposure to a mix of asset classes that perform differently over time is one of the best ways to help weather market cycles. In addition to providing diversification, an allocation to municipal bonds can provide tax-exempt income and help to manage overall portfolio volatility. The Schwab Tax-Free Bond Funds also offer active management by an experienced investment team that employs extensive credit research in maintaining a mix of securities that seek to maximize current income while maintaining each fund’s credit standards. Investors in the funds may benefit not only from convenient access to investment-grade municipal securities from a broad range of issuers, but also from a disciplined investment process.
Thank you for investing with Charles Schwab Investment Management. For more information about the Schwab Tax-Free Bond Funds, please continue reading this report. In addition, you can find further details about these funds by visiting our website at www.schwabfunds.com. We are also happy to hear from you at 1-877-824-5615.
Sincerely,
“ In addition to providing diversification, an allocation to municipal bonds can provide tax-exempt income and help to manage overall portfolio volatility.”
Past performance cannot guarantee future results.
Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.
Management views may have changed since the report date.
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Funds
The Investment Environment
For the 12-month reporting period ended August 31, 2020, most fixed-income markets generated positive returns. Up until the final week of the first half of the reporting period, global equity markets were positive, with major market indices hitting new highs in mid-February. However, beginning in late February, the COVID-19 outbreak wreaked havoc on the global economy, prompting dramatic social distancing restrictions, shuttering businesses, and resulting in a new record for the fastest U.S. market decline with the S&P 500® Index, a bellwether for the overall U.S. stock market, dropping 30% in just 22 trading days in late February and early March. As investors flocked to the perceived safety of U.S. Treasury securities, bond prices soared as yields were driven to historically low levels. (Bond yields and bond prices typically move in opposite directions.) By the end of March, governments and central banks around the world had begun passing extensive emergency rescue and fiscal stimulus measures in an effort to support their economies. While the extraordinary response prompted a rally in global equity markets from their March lows, particularly in the U.S., historic volatility remained. Demand for muni bonds fell sharply, creating spikes in yields and reductions in liquidity. By the end of the reporting period, several major market indices exceeded their February highs and most bond prices had resumed their upward momentum. For the reporting period, the Bloomberg Barclays California Municipal 3-15 Year Blend Index returned 3.61% and the S&P California AMT-Free Municipal Bond Index returned 3.50%. For the same period, the Bloomberg Barclays Municipal 3-15 Year Blend Index returned 3.50% and the S&P National AMT-Free Municipal Bond Index returned 3.01%.
Prior to the onset of the COVID-19 pandemic, the U.S. economy, despite ongoing trade tensions with China, maintained steady growth in its record eleventh year of expansion, albeit at a slowing pace. In December, an announced partial trade resolution between the U.S. and China helped ease market tensions. U.S. gross domestic product (GDP) grew at an annual rate of 2.1% in the third and fourth quarters of 2019, up from 2.0% in the second quarter, but in the fallout of the COVID-19 pandemic, the U.S. entered recessionary territory with record speed. U.S. GDP fell steeply, declining 5.0% and 31.4% for the first and second quarters of 2020, respectively, with the second quarter representing the largest contraction in U.S. GDP since 1947. Unemployment remained at record lows through February before a record number of unemployment claims in March resulted in the largest monthly increase in the U.S. unemployment rate since January 1975. In April, this record was broken again when unemployment skyrocketed, rising to the highest level since the Great Depression. Unemployment declined in May through August, dropping below double digits in August. Consumer confidence, which remained solid through February, also fell steeply in March and
Yield Advantage of Munis over Treasuries: For Five-Year bonds; Tax Brackets Shown are the Highest Applicable
Index figures assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized. Past performance is not an indication of future results.
For index definitions, please see the Glossary.
Data source: Bloomberg L.P.
Nothing in this report represents a recommendation of a security by the investment adviser.
Management views may have changed since the report date.
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Funds
The Investment Environment (continued)
April. By June, consumer confidence recovered before falling again in July and August. Inflation crept up slightly in January and February, before retreating in March, April, and May, with April seeing the largest monthly decline since December 2008. Inflation began to climb again in June.
Many central banks around the world, including the U.S. Federal Reserve (Fed), reduced their policy rates over the reporting period, while others maintained low—and for some international central banks, negative—interest rates. In the U.S., the Fed enacted three interest rate cuts in the second half of 2019—in July, September, and October, amid growing signs of global economic weakness that threatened to dampen U.S. economic growth, along with continued low inflation and weakness in manufacturing. As the economic implications of the COVID-19 pandemic grew, the Fed cut interest rates twice in 2020—by 0.50% in early March and by 1.00% in mid-March—resulting in a federal funds rate of 0.00% to 0.25%. In addition, the Fed also announced extensive emergency measures to support the economy in light of the COVID-19 pandemic, including large purchases of U.S. Treasuries and other securities to support smooth market function, facilitating the flow of credit to municipalities, new financing for employers, consumers, and businesses, and the establishment of facilities to support credit to businesses and consumers alike. In August, the Fed announced that it was shifting its interest rate policy approach to potentially allow inflation to rise above its 2% target for periods of time even in times of rising employment.
The muni bond market generated strong returns in 2019, due in part to the Fed’s shift to a more accommodative stance, with muni bonds posting strong performance relative to U.S. Treasuries. That momentum continued into 2020, buoyed by worries on multiple fronts including the U.S.-Iran conflict, impeachment hearings, and the COVID-19 outbreak. Investors flocked to higher-quality assets, pushing interest rates lower. However, as the implications of the COVID-19 pandemic grew and state and local governments experienced a sharp and sudden drop in economic activity and an increase in expenses amid stay-at-home orders and business shutdowns, muni bond demand fell steeply. Credit markets began stabilizing in May and as investors began to look for yield in the exceedingly low interest rate environment, high-quality muni bonds were in particular demand. While new issuance was curtailed in March, muni bond issuers have taken advantage of low interest rates to increase issuance as demand has risen.
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Funds
California State Investment Environment
California’s decade-long period of economic growth ended with the onset of the COVID-19 pandemic and resulting disruption to the economy. The state’s record level of financial reserves, as well as federal COVID-19 aid, have helped cushion the near-term recessionary impact of the COVID-19 pandemic containment efforts on the state’s financial position, although half its reserves may be depleted by the end of the state’s fiscal year in June 2021.
California started fiscal 2020 (ended June 30, 2020) in a strong revenue position with the state’s major taxes running ahead of forecast through the first eight months (July 2019 – February 2020) of the fiscal year. The trend quickly reversed, however, as COVID-19 containment efforts led to a decline in sales and use taxes and personal and business income tax payments were delayed by up to three months to July. Nevertheless, California estimates it closed fiscal 2020 with reserves of $19 billion, down only 6% ($1 billion) from the original budget estimate due to expenditure cuts, federal aid and higher than estimated beginning year reserves. Reserves included $16 million in the rainy day fund, equal to 11% of annual spending.
State personal income taxes and sales and use taxes are the state’s leading revenues, both of which are highly economically cyclical. The enacted fiscal 2021 budget projects personal income taxes and sales and use taxes will decline 19% and 17%, respectively, from fiscal 2020. The accuracy of such projections, however, depends on the duration and severity of the economic recession. Total general fund revenues are projected to be $130 billion, a decline of $10 billion and the lowest level of state revenues since fiscal 2017. The budget did not include any tax increases, but did include a three year suspension of net operating losses and a cap on allowable business tax credits to generate $4 billion of additional tax revenue. In addition, the budget taps half, or nearly $8 billion, of the state’s rainy day fund to offset the need for deeper cuts. General fund support for K-12 education is projected to decline 12% to $48 billion, largely due to a deferral of some aid payments to fiscal 2022. The budget also reduced financial support for higher education and other government services. The budget includes a provision to restore a portion of K-12 and other funding if it receives additional federal stimulus.
California lost approximately 2.5 million jobs from the beginning of the recession in March 2020 through July 2020, a 13.2% decline in jobs that exceeded the national decline of 9.6%. California’s unemployment rate jumped from 3.9% in February 2020 to 16.4% in April before declining to 13.5% in July as businesses continued to reopen.
Most of the state’s counties had strong financial positions entering the recession, aided by growth in their property tax bases and other revenues during the long economic expansion period. Property taxes are a major source of revenues for California counties and are not as economically sensitive as many other types of revenues. While Los Angeles County has been one of the hardest hit counties in the state in terms of COVID-19 cases and job losses, its strong local property tax base, state and federal aid, and strong reserves are expected to help it weather the near-term impact of the recession.
California cities generally derive their revenues from property taxes and a wide variety of taxes and fees, such as sales and use taxes and hotel taxes that are economically sensitive. Cities that are more dependent on economically sensitive revenues face greater budgetary challenges in the current economic environment.
Most California school districts and community college districts receive the bulk of their total funding from the state, but their general obligation bonds are secured by dedicated local property taxes and are not paid from state funds. Consequently, reductions in state aid to school districts and community college districts will decrease the amount of funds to pay operating expenses, but will not impact property taxes levied specifically for debt service on general obligation bonds.
With its large and diverse economy, California’s credit quality is expected to remain strong notwithstanding the recent spike in unemployment and decline in revenues. At the end of the reporting period, the state’s general obligation ratings were Aa2 from Moody’s Investors Service, AA- from S&P Global Ratings, and AA from Fitch Ratings. All three rating agencies maintained stable outlooks on their ratings.
Management views may have changed since the report date.
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Funds
 | Kenneth Salinger, CFA, Vice President and Head of Tax-Exempt Bond Strategies, leads the portfolio management team for Schwab’s tax-free bond funds. He also has overall responsibility for all aspects of the management of the funds. Prior to joining CSIM in 2008, Mr. Salinger was a senior portfolio manager at Wells Capital Management, working on a team that managed municipal bond assets. He worked at American Century Investments from 1992 to 2006, where he was a vice president and senior portfolio manager, responsible for daily management of a number of national and state specific municipal bond funds. Mr. Salinger has worked in fixed-income asset management since 1994. |
 | James Cortez, CFA, Portfolio Manager, is responsible for the day-to-day co-management of the funds. Previous to this role, Mr. Cortez was a director on CSIM’s municipal research team, focusing on healthcare and higher education credits. Prior to joining CSIM in 2006, Mr.Cortez was an associate director and healthcare analyst at Standard & Poor’s Corporation. He also worked at Driehaus Capital Management as an international specialist and at Harris Trust and Savings Bank as a financial analyst. |
 | John Khodarahmi, Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2015, Mr. Khodarahmi was a vice president and senior municipal trader at Eaton Vance Management for the firm’s tax-free bond funds since 2002. Previous to that, he was a vice president at both Banc of America Montgomery Securities and Thomas Weisel Partners, and also spent time as a corporate cash and high net worth portfolio manager/trader at Thomas Weisel. Prior to those roles, Mr. Khodarahmi was a municipal trader and underwriter for Fleet Securities, Inc. (now part of Bank of America). |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund as of August 31, 2020
The Schwab Tax-Free Bond Fund (the fund) seeks high current income that is exempt from federal income tax, consistent with capital preservation. To pursue its goal, the fund primarily invests in investment-grade municipal securities (munis)—those in the four highest credit rating categories (rated AAA to BBB- or the unrated equivalent as determined by the investment adviser). The fund normally invests at least 80% of its net assets (including, for this purpose, any borrowings for investment purposes) in munis the interest from which is exempt from federal income tax, including the federal alternative minimum tax. For more information on the fund’s investment objective and principal investment strategies, please see the fund’s prospectus.
Market Highlights. In a period that saw volatility due to the COVID-19 pandemic, muni fixed-income markets generated mixed returns for the 12-month reporting period ended August 31, 2020, with most muni bonds higher but high-yield muni bonds lower. Up until late February, despite ongoing trade tensions, the U.S. economy continued to exhibit steady growth, albeit at a declining pace. In September and October 2019, amid growing signs of global economic weakness that threatened to dampen U.S. economic growth, along with continued low inflation and weakness in manufacturing, the Federal Reserve (Fed) cut short-term interest rates and bond prices rose steadily throughout most of the first half of the period. (Bond yields and bond prices typically move in opposite directions.) However, beginning in late February, the rapidly expanding COVID-19 pandemic drove a selloff that sent major equity indices into bear-market territory in record time and drove bond prices lower. In response, the Fed enacted two emergency rate cuts—by 0.50% in early March and by 1.00% in mid-March—and announced extensive emergency measures to support the economy in light of the COVID-19 pandemic, including massive purchases of U.S. Treasuries and other securities to support smooth market functioning. By late March, bonds began recovering and maintained mostly upward momentum through the end of the reporting period.
In this environment, U.S. Treasury yields ended the reporting period near historic lows. The yield on the three-month U.S. Treasury fell from 1.99% to 0.11% over the reporting period and the 10-year U.S. Treasury yield slid from 1.50% to 0.72%.
Due in part to the Fed’s shift to a more accommodative stance in 2019, the muni bond market generated strong returns in 2019, and that momentum continued into 2020. However, as the implications of the COVID-19 pandemic grew and state and local governments experienced a sharp and sudden drop in economic activity and an increase in expenses amid stay-at-home orders and business shutdowns, muni bond demand fell steeply. Credit markets began stabilizing in May and demand for muni bonds—particularly high-quality muni bonds—rose for most of the remainder of the reporting period. While new issuance was curtailed in March, muni bond issuers have taken advantage of low interest rates to increase issuance as demand has risen.
Performance. The fund returned 2.52% for the 12-month period ended August 31, 2020. On January 1, 2020, the fund changed its comparative index from the S&P National AMT-Free Municipal Bond Index, which returned 3.01% for the 12-month reporting period, to the new index, the Bloomberg Barclays Municipal 3-15 Year Blend Index (the comparative index), which returned 3.50%.
Positioning and Strategies. The fund generally maintains a sensitivity to interest rates within a conservative range to limit unexpected performance swings. The fund’s duration, a measure of interest-rate sensitivity, was generally long in relation to the fund’s index and near-neutral in relation to the fund’s peers. The fund’s duration trended higher toward the end of the reporting period in response to a more bullish outlook for muni bonds. This extended duration benefitted the fund’s performance.
Throughout most of the reporting period the fund maintained a somewhat “barbelled” position relative to the index, with a heavier concentration of securities with shorter and longer maturities—including holding securities with longer maturities than those in the index—and a smaller percentage of intermediate-term securities.
The fund’s portfolio managers continue to monitor credit developments to assess risk and opportunity. The fund increased its exposure to lower-rated securities throughout the year, particularly after credit spreads widened dramatically during the COVID-19 pandemic-driven selloff in March, raising the fund’s credit exposure. Although the fund increased its credit exposure over the reporting period, it remained underweight relative to peers. The comparative index has less credit exposure than the fund.
Effective December 18, 2019, the fund expanded its investment strategy to allow up to 20% of its net assets to be invested in muni securities whose interest is subject to the federal alternative minimum tax (AMT). This provided the fund’s portfolio managers with more investment options for the fund, which resulted in a modest boost to the fund’s yield.
Management views and portfolio holdings may have changed since the report date.
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Performance and Fund Facts as of August 31, 2020
Portfolio Composition % of investments
These charts show two different views of the fund’s portfolio: by type of security and credit quality of the security.
By Security Type
| Weighted Average Maturity1 | 5.8 Yrs |
| Weighted Average Duration1 | 5.7 Yrs |
Portfolio holdings may have changed since the report date.
| 1 | See Glossary for definitions of maturity and duration. |
| 2 | Bloomberg Barclays Index Rating: Based on the middle rating of Moody’s, S&P and Fitch; when a rating from only two agencies is available, the lower is used; when only one agency rates a bond, that rating is used. In cases where explicit bond level ratings may not be available, other sources may be used to classify securities by credit quality. Source: Bloomberg Index Service Ltd. |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Performance and Fund Facts as of August 31, 2020 (continued)
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 may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabfunds.com/schwabfunds_prospectus.
Performance of Hypothetical $10,000 Investment (August 31, 2010 – August 31, 2020)1,2
Average Annual Returns1,2
| Fund and Inception Date | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Tax-Free Bond Fund (9/11/92) | 2.52% | 3.17% | 3.33% |
| Bloomberg Barclays Municipal 3-15 Year Blend Index 3 | 3.50% | 3.76% | 3.67% |
| S&P National AMT-Free Municipal Bond Index | 3.01% | 3.86% | 3.77% |
| Fund Category: Morningstar Municipal National Intermediate Bond 4 | 2.36% | 3.27% | 3.27% |
| Fund Expense Ratios5: Net 0.49%; Gross 0.56% |
| 30-Day SEC Yield1,2 | 0.87% |
| 30-Day SEC Yield-No Waiver1,6 | 0.83% |
| Taxable Equivalent Yield7 | 1.47% |
| 12-Month Distribution Yield1,2 | 2.11% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
| 1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. |
| 2 | Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the total return/yield may have been lower. |
| 3 | Effective January 1, 2020, the fund changed its benchmark index from the S&P National AMT-Free Municipal Bond Index to the Bloomberg Barclays Municipal 3-15 Year Blend Index. Charles Schwab Investment Management, Inc. believes the benchmark index change provides a more appropriate comparison for evaluating the fund’s performance. |
| 4 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 5 | As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, refer to the Financial Highlights section of the financial statements. |
| 6 | Yield if fund expenses had not been partially absorbed by the investment adviser and its affiliates. |
| 7 | Taxable equivalent yield assumes a federal regular income tax rate of 40.80%, which includes a Medicare surcharge rate of 3.8%. Your tax rate may be different. |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund as of August 31, 2020
The Schwab California Tax-Free Bond Fund (the fund) seeks high current income exempt from federal and California personal income tax that is consistent with capital preservation. To pursue its goal, the fund primarily invests in investment-grade municipal securities (munis)—those in the four highest credit rating categories (rated AAA to BBB- or the unrated equivalent as determined by the investment adviser) from California issuers. The fund normally invests at least 80% of its net assets (including, for this purpose, any borrowings for investment purposes) in munis the interest from which is exempt from federal and California personal income tax and federal alternative minimum tax. For more information on the fund’s investment objective and principal investment strategies, please see the fund’s prospectus.
Market Highlights. In a period that saw volatility due to the COVID-19 pandemic, muni fixed-income markets generated mixed returns for the 12-month reporting period ended August 31, 2020, with most muni bonds higher but high-yield muni bonds lower. Up until late February, despite ongoing trade tensions, the U.S. economy continued to exhibit steady growth, albeit at a declining pace. In September and October 2019, amid growing signs of global economic weakness that threatened to dampen U.S. economic growth, along with continued low inflation and weakness in manufacturing, the Federal Reserve (Fed) cut short-term interest rates and bond prices rose steadily throughout most of the first half of the period. (Bond yields and bond prices typically move in opposite directions.) However, beginning in late February, the rapidly expanding COVID-19 pandemic drove a selloff that sent major equity indices into bear-market territory in record time and drove bond prices lower. In response, the Fed enacted two emergency rate cuts—by 0.50% in early March and by 1.00% in mid-March—and announced extensive emergency measures to support the economy in light of the COVID-19 pandemic, including massive purchases of U.S. Treasuries and other securities to support smooth market functioning. By late March, bonds began recovering and maintained mostly upward momentum through the end of the reporting period.
In this environment, U.S. Treasury yields ended the reporting period near historic lows. The yield on the three-month U.S. Treasury fell from 1.99% to 0.11% over the reporting period and the 10-year U.S. Treasury yield slid from 1.50% to 0.72%.
Due in part to the Fed’s shift to a more accommodative stance in 2019, the muni bond market generated strong returns in 2019, and that momentum continued into 2020. However, as the implications of the COVID-19 pandemic grew and state and local governments experienced a sharp and sudden drop in economic activity and an increase in expenses amid stay-at-home orders and business shutdowns, muni bond demand fell steeply. Credit markets began stabilizing in May and demand for muni bonds—particularly high-quality munis—rose for most of the remainder of the reporting period. While new issuance was curtailed in March, muni bond issuers have taken advantage of low interest rates to increase issuance as demand has risen.
Performance. The fund returned 2.54% for the 12-month period ended August 31, 2020. On January 1, 2020, the fund changed its comparative index from the S&P California AMT-Free Municipal Bond Index, which returned 3.50% for the 12-month reporting period, to the new index, the Bloomberg Barclays California Municipal 3-15 Year Blend Index (the comparative index), which returned 3.61%.
Positioning and Strategies. The fund generally maintains a sensitivity to interest rates within a conservative range to limit unexpected performance swings. The fund’s duration, a measure of interest-rate sensitivity, was generally long in relation to the fund’s index and near-neutral in relation to the fund’s peers. The fund’s duration trended higher toward the end of the reporting period in response to a more bullish outlook for muni bonds. This extended duration benefitted the fund’s performance.
Throughout most of the reporting period the fund maintained a somewhat “barbelled” position relative to the index, with a heavier concentration of securities with shorter and longer maturities—including holding securities with longer maturities than those in the index—and a smaller percentage of intermediate-term securities.
The fund’s portfolio managers continue to monitor credit developments to assess risk and opportunity. The fund increased its exposure to lower-rated securities throughout the year, particularly after credit spreads widened dramatically during the COVID-19 pandemic-driven selloff in March, raising the fund’s credit exposure. Although the fund increased its credit exposure over the reporting period, it remained underweight relative to peers. The comparative index has less credit exposure than the fund.
Effective December 18, 2019, the fund expanded its investment strategy to allow up to 20% of its net assets to be invested in muni securities whose interest is subject to the federal alternative minimum tax (AMT). This provided the fund’s portfolio managers with more investment options for the fund, which resulted in a modest boost to the fund’s yield.
Management views and portfolio holdings may have changed since the report date.
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Performance and Fund Facts as of August 31, 2020
Portfolio Composition % of investments
These charts show two different views of the fund’s portfolio: by type of security and credit quality of the security.
By Security Type
| Weighted Average Maturity1 | 5.7 Yrs |
| Weighted Average Duration1 | 5.9 Yrs |
Portfolio holdings may have changed since the report date.
| 1 | See Glossary for definitions of maturity and duration. |
| 2 | Bloomberg Barclays Index Rating: Based on the middle rating of Moody’s, S&P and Fitch; when a rating from only two agencies is available, the lower is used; when only one agency rates a bond, that rating is used. In cases where explicit bond level ratings may not be available, other sources may be used to classify securities by credit quality. Source: Bloomberg Index Service Ltd. |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Performance and Fund Facts as of August 31, 2020 (continued)
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 may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabfunds.com/schwabfunds_prospectus.
Performance of Hypothetical $10,000 Investment (August 31, 2010 – August 31, 2020)1,2
Average Annual Returns1,2
| Fund and Inception Date | 1 Year | 5 Years | 10 Years |
| Fund: Schwab California Tax-Free Bond Fund (2/24/92) | 2.54% | 3.14% | 3.40% |
| Bloomberg Barclays California Municipal 3-15 Year Blend Index 3 | 3.61% | N/A 4 | N/A 4 |
| S&P California AMT-Free Municipal Bond Index | 3.50% | 3.85% | 4.23% |
| Fund Category: Morningstar Municipal California Intermediate/Short Bond 5 | 1.90% | 2.95% | 3.24% |
| Fund Expense Ratios6: Net 0.49%; Gross 0.60% |
| 30-Day SEC Yield1,2 | 0.61% |
| 30-Day SEC Yield-No Waiver1,7 | 0.56% |
| Taxable Equivalent Yield8 | 1.32% |
| 12-Month Distribution Yield1,2 | 2.39% |
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.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
| 1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. |
| 2 | Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the total return/yield may have been lower. |
| 3 | Effective January 1, 2020, the fund changed its benchmark index from the S&P California AMT-Free Municipal Bond Index to the Bloomberg Barclays California Municipal 3-15 Year Blend Index. Charles Schwab Investment Management, Inc. believes the benchmark index change provides a more appropriate comparison for evaluating the fund’s performance. The Bloomberg Barclays California Municipal 3-15 Year Blend Index was established effective January 1, 2020. Performance shown prior to January 1, 2020 is based on a subset of securities included in the Bloomberg Barclays Municipal 3-15 Year Blend Index. |
| 4 | Information not available to the funds. |
| 5 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 6 | As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, refer to the Financial Highlights section of the financial statements. |
| 7 | Yield if fund expenses had not been partially absorbed by the investment adviser and its affiliates. |
| 8 | Taxable equivalent yield assumes a federal regular income tax rate of 40.80%, which includes a Medicare surcharge rate of 3.8%, and effective California state personal income tax rate of 13.30%. Your tax rate may be different. |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Funds
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, transfer agent and shareholder services fees, and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning March 1, 2020 and held through August 31, 2020.
Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in a fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs. Therefore, the hypothetical return lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | Expense Ratio
(Annualized)1 | Beginning
Account Value
at 3/1/20 | Ending
Account Value
(Net of Expenses)
at 8/31/20 | Expenses Paid
During Period
3/1/20-8/31/202 |
| Schwab Tax-Free Bond Fund | | | | |
| Actual Return | 0.49% | $1,000.00 | $ 999.70 | $2.46 |
| Hypothetical 5% Return | 0.49% | $1,000.00 | $1,022.64 | $2.49 |
| Schwab California Tax-Free Bond Fund | | | | |
| Actual Return | 0.49% | $1,000.00 | $1,003.00 | $2.47 |
| Hypothetical 5% Return | 0.49% | $1,000.00 | $1,022.64 | $2.49 |
| 1 | Based on the most recent six-month expense ratio. |
| 2 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by 366 days of the fiscal year. |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Financial Statements
Financial Highlights
| | 9/1/19–
8/31/20 | 9/1/18–
8/31/19 | 9/1/17–
8/31/18 | 9/1/16–
8/31/17 | 9/1/15–
8/31/16 | |
| Per-Share Data |
| Net asset value at beginning of period | $12.12 | $11.52 | $11.82 | $12.13 | $11.82 | |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.26 | 0.28 | 0.27 | 0.27 | 0.26 | |
| Net realized and unrealized gains (losses) | 0.04 2 | 0.60 | (0.30) | (0.21) | 0.37 | |
| Total from investment operations | 0.30 | 0.88 | (0.03) | 0.06 | 0.63 | |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.26) | (0.28) | (0.27) | (0.27) | (0.26) | |
| Distributions from net realized gains | (0.03) | — | — | (0.10) | (0.06) | |
| Total distributions | (0.29) | (0.28) | (0.27) | (0.37) | (0.32) | |
| Net asset value at end of period | $12.13 | $12.12 | $11.52 | $11.82 | $12.13 | |
| Total return | 2.52% | 7.77% | (0.22%) | 0.63% | 5.37% | |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses | 0.49% | 0.49% | 0.49% | 0.49% | 0.49% | |
| Gross operating expenses | 0.55% | 0.56% | 0.57% | 0.56% | 0.57% | |
| Net investment income (loss) | 2.14% | 2.41% | 2.35% | 2.32% | 2.16% | |
| Portfolio turnover rate | 99% | 129% | 82% | 83% | 54% 3 | |
| Net assets, end of period (x 1,000,000) | $758 | $751 | $650 | $667 | $708 | |
| |
1
Calculated based on the average shares outstanding during the period.
2
The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of sales and repurchases of fund shares in relation to fluctuating market values.
3
Historically low yields led to large unrealized gains in existing positions. To limit taxable gains, Fund Management decreased sale activity and thereby decreased portfolio turnover.
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of each calendar quarter on the fund’s website at www.schwabfunds.com/schwabfunds_prospectus.
For fixed-rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued). For variable-rate obligations, the rate shown is the rate as of the report date based on each security’s rate reset date. The reference rate and spread used is shown parenthetically in the security description, if available; if not, the reference rate is described in a footnote. The maturity date shown for all the securities is the final legal maturity.
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Fixed-Rate Obligations 85.7% of net assets |
| ALABAMA 0.9% |
| Pell Special Care Facilities Financing Auth | | | |
| RB (Noland Health Services) Series 2012A | 5.00% | | 12/01/20 | 900,000 | 910,260 |
| RB (Noland Health Services) Series 2016A | 5.00% | | 12/01/31 (a) | 2,000,000 | 2,088,700 |
| Univ of Montevallo | | | |
| RB Series 2017 | 5.00% | | 05/01/26 | 200,000 | 247,666 |
| RB Series 2017 | 5.00% | | 05/01/27 | 250,000 | 317,965 |
| RB Series 2017 | 5.00% | | 05/01/42 (a) | 2,650,000 | 3,210,157 |
| | | | | | 6,774,748 |
| ALASKA 0.7% |
| Anchorage | | | |
| GO Bonds Series 2020A | 4.00% | | 04/01/37 (a) | 1,000,000 | 1,211,440 |
| GO Bonds Series 2020A | 3.00% | | 04/01/39 (a) | 1,000,000 | 1,081,230 |
| North Slope Borough | | | |
| Water & Wastewater Facilities RB (Service Area 10) Series 2014 | 5.00% | | 06/30/22 (a)(b) | 1,130,000 | 1,170,036 |
| Water & Wastewater Facilities RB (Service Area 10) Series 2014 | 5.00% | | 06/30/23 (a)(b) | 1,790,000 | 1,853,420 |
| | | | | | 5,316,126 |
| ARIZONA 0.5% |
| Arizona Health Facilities Auth |
| RB (Phoenix Childrens Hospital) Series 2013B | 5.00% | | 02/01/43 (a) | 1,000,000 | 1,076,920 |
| Phoenix Civic Improvement Corp |
| Jr RB (Phoenix Sky Harbor Intl Airport) Series 2019A | 4.00% | | 07/01/44 (a) | 1,000,000 | 1,124,470 |
| Tucson | | | |
| Refunding COP Series 2014 | 4.00% | | 07/01/22 | 700,000 | 745,913 |
| Refunding COP Series 2014 | 4.00% | | 07/01/23 | 700,000 | 769,216 |
| | | | | | 3,716,519 |
| ARKANSAS 1.3% |
| Fayetteville |
| Sales Tax RB Series 2019A | 1.60% | | 11/01/35 (a) | 2,010,000 | 2,004,935 |
| Little Rock | | | |
| Sewer Refunding RB Series 2015 | 3.00% | | 04/01/23 | 735,000 | 782,040 |
| Sewer Refunding RB Series 2015 | 3.00% | | 04/01/24 | 560,000 | 607,712 |
| Marion |
| Sales & Use Tax RB Series 2017 | 2.90% | | 09/01/47 (a) | 480,000 | 490,704 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Rogers |
| Sales & Use Tax Bonds Series 2018B | 3.25% | | 11/01/43 (a) | 3,225,000 | 3,409,470 |
| Sherwood |
| Sales & Use Tax Bonds Series 2018 | 3.05% | | 12/01/43 (a) | 690,000 | 723,092 |
| Springdale |
| Sales & Use Tax Refunding & Improvement Bonds Series 2018 | 3.00% | | 04/01/43 (a) | 2,215,000 | 2,223,661 |
| | | | | | 10,241,614 |
| CALIFORNIA 6.6% |
| Anaheim Housing & Public Improvement Auth |
| Electric System Refunding RB Series 2016 | 5.00% | | 10/01/41 (a)(b) | 640,000 | 671,853 |
| California | | | |
| GO Bonds | 5.00% | | 08/01/24 | 1,000,000 | 1,186,530 |
| GO Bonds | 5.00% | | 03/01/27 (a) | 2,600,000 | 3,124,342 |
| GO Refunding Bonds Series 2017 | 5.00% | | 08/01/32 (a) | 590,000 | 733,494 |
| California Statewide Communities Development Auth | | | |
| Hospital Refunding RB (Methodist Hospital of Southern California) Series 2018 | 5.00% | | 01/01/23 | 455,000 | 496,896 |
| Hospital Refunding RB (Methodist Hospital of Southern California) Series 2018 | 5.00% | | 01/01/24 | 600,000 | 677,484 |
| Hospital Refunding RB (Methodist Hospital of Southern California) Series 2018 | 5.00% | | 01/01/25 | 1,000,000 | 1,163,990 |
| Hospital Refunding RB (Methodist Hospital of Southern California) Series 2018 | 5.00% | | 01/01/26 | 1,050,000 | 1,255,012 |
| RB (Loma Linda Univ Medical Center) Series 2016A | 5.00% | | 12/01/36 (a) | 1,500,000 | 1,652,655 |
| RB (Loma Linda Univ Medical Center) Series 2018A | 5.25% | | 12/01/43 (a) | 2,065,000 | 2,261,609 |
| Hastings Campus Housing Financing Auth |
| Campus Housing RB Series 2020A | 5.00% | | 07/01/45 (a)(c) | 3,700,000 | 3,836,234 |
| Jurupa Public Finance Auth | | | |
| Special Tax RB Series 2014A | 5.00% | | 09/01/21 | 450,000 | 471,091 |
| Special Tax RB Series 2014A | 5.00% | | 09/01/22 | 60,000 | 65,422 |
| Los Angeles Dept of Airports |
| Sub RB Series 2019F | 5.00% | | 05/15/28 | 2,115,000 | 2,689,540 |
| New Haven USD |
| GO Refunding Bonds Series 2014B | 5.00% | | 08/01/21 | 1,000,000 | 1,044,370 |
| Oakland USD | | | |
| GO Bonds Series 2015A | 5.00% | | 08/01/27 (a) | 1,295,000 | 1,549,390 |
| GO Bonds Series 2015A | 5.00% | | 08/01/28 (a) | 1,000,000 | 1,192,060 |
| Oroville |
| RB (Oroville Hospital) Series 2019 | 5.25% | | 04/01/49 (a) | 3,000,000 | 3,246,870 |
| Pasadena |
| Refunding COP Series 2015A | 5.00% | | 02/01/29 (a) | 585,000 | 702,415 |
| Pasadena Public Financing Auth |
| Lease RB Series 2010A | 5.00% | | 03/01/22 (a)(b) | 360,000 | 368,676 |
| Pleasant Valley SD |
| GO Refunding Bonds Series 2002A | 5.85% | | 08/01/31 | 3,000,000 | 3,943,380 |
| Rancho Cucamonga Successor Redevelopment Agency |
| Tax Allocation Refunding Bonds Series 2014 | 5.00% | | 09/01/26 (a) | 755,000 | 883,592 |
| San Bruno Public Finance Auth | | | |
| Lease RB Series 2019 | 5.00% | | 05/01/30 (a) | 460,000 | 618,843 |
| Lease RB Series 2019 | 5.00% | | 05/01/31 (a) | 485,000 | 646,161 |
| San Diego USD | | | |
| GO Bonds Series 2010C | 0.00% | | 07/01/31 (d) | 1,250,000 | 1,041,537 |
| GO Bonds Series 2010C | 0.00% | | 07/01/32 (d) | 1,500,000 | 1,209,825 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| GO Bonds Series 2010C | 0.00% | | 07/01/33 (d) | 1,000,000 | 782,520 |
| GO Bonds Series 2010C | 0.00% | | 07/01/35 (d) | 1,300,000 | 962,481 |
| San Francisco Airport Commission |
| RB 2nd Series 2019E | 5.00% | | 05/01/40 (a) | 2,875,000 | 3,526,849 |
| San Francisco CCD |
| GO Bonds Series 2010D | 5.00% | | 06/15/29 (a) | 1,000,000 | 1,003,430 |
| San Francisco Public Utilities Commission |
| Water RB Series 2017A | 5.00% | | 11/01/36 (a) | 2,685,000 | 3,142,578 |
| Santa Cruz Cnty Successor Redevelopment Agency | | | |
| Tax Allocation Refunding Bonds 2014 | 5.00% | | 09/01/22 | 605,000 | 660,182 |
| Tax Allocation Refunding Bonds 2014 | 5.00% | | 09/01/23 | 375,000 | 425,932 |
| Tax Allocation Refunding Bonds 2014 | 5.00% | | 09/01/24 | 1,060,000 | 1,250,175 |
| Stockton Public Financing Auth | | | |
| Water Refunding RB Series 2018A | 5.00% | | 10/01/23 | 300,000 | 339,477 |
| Water Refunding RB Series 2018A | 5.00% | | 10/01/24 | 300,000 | 351,657 |
| Water Refunding RB Series 2018A | 5.00% | | 10/01/25 | 500,000 | 604,515 |
| | | | | | 49,783,067 |
| COLORADO 1.0% |
| Boulder Cnty | | | |
| COP Series 2015 | 5.00% | | 12/01/24 (a) | 375,000 | 379,369 |
| COP Series 2015 | 5.00% | | 12/01/25 (a) | 500,000 | 505,800 |
| Centennial Water & Sanitation District | | | |
| Water & Wastewater RB Series 2019 | 5.00% | | 12/01/34 (a) | 500,000 | 649,525 |
| Water & Wastewater RB Series 2019 | 5.00% | | 12/01/35 (a) | 500,000 | 646,885 |
| Colorado Health Facilities Auth | | | |
| RB (CommonSpirit Health) Series 2019A1 | 4.00% | | 08/01/37 (a) | 1,250,000 | 1,413,450 |
| Refunding RB (Evangelical Lutheran Good Samaritan Society) Series 2017 | 5.00% | | 06/01/31 (a)(b) | 1,250,000 | 1,620,812 |
| Refunding RB (National Jewish Health) Series 2012 | 5.00% | | 01/01/21 | 1,900,000 | 1,925,498 |
| Denver |
| Dedicated Tax RB Series 2018A-2 | 0.00% | | 08/01/31 (a)(d) | 500,000 | 383,055 |
| | | | | | 7,524,394 |
| CONNECTICUT 2.3% |
| Connecticut | | | |
| GO Bonds Series 2020C | 4.00% | | 06/01/33 (a) | 650,000 | 781,515 |
| GO Bonds Series 2020C | 4.00% | | 06/01/34 (a) | 1,000,000 | 1,195,910 |
| GO Bonds Series 2020C | 4.00% | | 06/01/35 (a) | 250,000 | 297,428 |
| GO Bonds Series 2020C | 4.00% | | 06/01/36 (a) | 1,250,000 | 1,480,137 |
| GO Refunding Bonds Series 2016B | 5.00% | | 05/15/27 (a) | 2,095,000 | 2,573,288 |
| Special Tax Obligation Bonds Series 2020A | 5.00% | | 05/01/25 | 850,000 | 1,025,814 |
| Special Tax Obligation Bonds Series 2020A | 5.00% | | 05/01/26 | 1,200,000 | 1,485,996 |
| Connecticut Health & Educational Facilities Auth |
| RB (Nuvance Health) Seriess 2019A | 4.00% | | 07/01/41 (a) | 3,000,000 | 3,284,850 |
| Univ of Connecticut | | | |
| GO Bonds Series 2019A | 5.00% | | 11/01/34 (a) | 2,000,000 | 2,506,560 |
| GO Bonds Series 2019A | 5.00% | | 11/01/35 (a) | 1,000,000 | 1,248,250 |
| GO Bonds Series 2019A | 5.00% | | 11/01/36 (a) | 1,000,000 | 1,243,540 |
| | | | | | 17,123,288 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| DELAWARE 0.0% |
| Delaware State Housing Auth |
| S/F Mortgage Sr RB Series 2011A2 | 4.25% | | 07/01/29 (a) | 345,000 | 349,592 |
| FLORIDA 3.7% |
| Florida Higher Educational Facilities Financing Auth | | | |
| Educational Facilities RB (Florida Institute of Technology) Series 2019 | 5.00% | | 10/01/24 | 375,000 | 406,897 |
| Educational Facilities RB (Florida Institute of Technology) Series 2019 | 5.00% | | 10/01/25 | 500,000 | 549,505 |
| Educational Facilities RB (Florida Institute of Technology) Series 2019 | 5.00% | | 10/01/26 | 765,000 | 849,892 |
| Educational Facilities RB (Florida Institute of Technology) Series 2019 | 5.00% | | 10/01/27 | 685,000 | 767,618 |
| Florida Ports Financing Commission |
| Transportation Trust Fund Refunding RB Series 2011A | 5.00% | | 10/01/28 (a) | 1,500,000 | 1,574,130 |
| Greater Orlando Aviation Auth | | | |
| Airport Facilities RB Series 2016A | 5.00% | | 10/01/20 | 1,000,000 | 1,003,550 |
| Airport Facilities RB Series 2019A | 5.00% | | 10/01/26 | 5,000,000 | 6,163,250 |
| Hollywood Community Redevelopment Agency |
| Refunding RB Series 2015 | 5.00% | | 03/01/24 | 3,000,000 | 3,458,490 |
| Jacksonville |
| Health Care Facilities Refunding RB (Baptist Health) Series 2017 | 5.00% | | 08/15/34 (a) | 960,000 | 1,166,419 |
| Miami Beach Health Facilities Auth | | | |
| Hospital Refunding & RB (Mt Sinai Medical Center) Series 2014 | 5.00% | | 11/15/21 | 100,000 | 104,889 |
| Hospital Refunding & RB (Mt Sinai Medical Center) Series 2014 | 5.00% | | 11/15/22 | 150,000 | 163,352 |
| Hospital Refunding & RB (Mt Sinai Medical Center) Series 2014 | 5.00% | | 11/15/24 | 400,000 | 466,028 |
| Hospital Refunding & RB (Mt Sinai Medical Center) Series 2014 | 5.00% | | 11/15/25 (a) | 250,000 | 289,148 |
| Miami-Dade Cnty |
| Aviation RB Series 2010A | 5.50% | | 10/01/26 (a)(b) | 1,135,000 | 1,139,869 |
| Miami-Dade Cnty Expressway Auth | | | |
| Toll System RB Series 2014A | 5.00% | | 07/01/22 | 550,000 | 589,176 |
| Toll System RB Series 2014A | 4.00% | | 07/01/23 | 1,730,000 | 1,867,985 |
| Toll System RB Series 2014A | 5.00% | | 07/01/24 | 625,000 | 714,675 |
| Palm Beach Cnty Health Facilities Auth |
| Hospital Refunding RB (Boca Raton Regional Hospital) Series 2014 | 5.00% | | 12/01/22 (b) | 800,000 | 884,144 |
| Port St. Lucie | | | |
| Utility System Refunding RB Series 2014 | 5.00% | | 09/01/20 | 150,000 | 150,000 |
| Utility System Refunding RB Series 2014 | 5.00% | | 09/01/21 | 175,000 | 183,076 |
| Utility System Refunding RB Series 2014 | 5.00% | | 09/01/22 | 485,000 | 529,644 |
| Utility System Refunding RB Series 2014 | 5.00% | | 09/01/23 | 350,000 | 397,765 |
| Tallahassee |
| Consolidated Utility Systems RB Series 2018 | 5.00% | | 10/01/35 (a) | 1,495,000 | 1,804,181 |
| Tampa | | | |
| Tax Allocation RBs (Moffitt Cancer Center) Series 2020A | 0.00% | | 09/01/35 (a)(d) | 1,550,000 | 991,581 |
| Tax Allocation RBs (Moffitt Cancer Center) Series 2020A | 0.00% | | 09/01/36 (a)(d) | 800,000 | 489,112 |
| Tax Allocation RBs (Moffitt Cancer Center) Series 2020A | 0.00% | | 09/01/37 (a)(d) | 855,000 | 499,286 |
| Tax Allocation RBs (Moffitt Cancer Center) Series 2020A | 0.00% | | 09/01/38 (a)(d) | 1,000,000 | 557,150 |
| Tax Allocation RBs (Moffitt Cancer Center) Series 2020A | 0.00% | | 09/01/49 (a)(d) | 1,200,000 | 404,124 |
| | | | | | 28,164,936 |
| GEORGIA 0.2% |
| Brookhaven Development Auth |
| RB (Children’s Healthcare of Atlanta) Series 2019A | 5.00% | | 07/01/27 | 1,500,000 | 1,902,360 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| HAWAII 0.0% |
| Hawaii State Housing Finance & Development Corp |
| S/F Mortgage Purchase RB Series 2011B | 4.50% | | 01/01/26 (a) | 120,000 | 122,326 |
| IDAHO 0.4% |
| Canyon Cnty SD #139 | | | |
| GO Bonds Series 2019A | 5.00% | | 09/15/26 (e) | 450,000 | 569,403 |
| GO Bonds Series 2019A | 5.00% | | 09/15/27 (e) | 400,000 | 519,628 |
| GO Bonds Series 2019A | 5.00% | | 09/15/28 (e) | 425,000 | 564,897 |
| GO Bonds Series 2019A | 5.00% | | 09/15/29 (a)(e) | 400,000 | 537,532 |
| Nampa SD #131 |
| GO Refunding Bonds Series 2011B | 4.00% | | 08/15/22 (e)(f) | 695,000 | 744,887 |
| | | | | | 2,936,347 |
| ILLINOIS 7.3% |
| Bellwood Village | | | |
| GO Refunding Bonds Series 2014 | 4.00% | | 12/01/21 | 500,000 | 522,115 |
| GO Refunding Bonds Series 2014 | 5.00% | | 12/01/32 (a) | 1,705,000 | 1,964,501 |
| GO Refunding Bonds Series 2016B | 5.00% | | 12/01/28 (a) | 1,855,000 | 2,289,849 |
| Chicago | | | |
| GO Bonds Series 2019A | 5.50% | | 01/01/35 (a) | 1,450,000 | 1,699,588 |
| OHare General Airport Sr Lien RB Series 2016C | 5.00% | | 01/01/29 (a) | 400,000 | 474,112 |
| OHare General Airport Sr Lien Refunding RB Series 2012A | 5.00% | | 01/01/25 (a) | 290,000 | 306,347 |
| OHare General Airport Sr Lien Refunding RB Series 2012A | 5.00% | | 01/01/33 (a) | 400,000 | 460,924 |
| OHare General Airport Sr Lien Refunding RB Series 2015B | 5.00% | | 01/01/28 (a) | 1,750,000 | 2,045,872 |
| OHare General Airport Sr Lien Refunding RB Series 2015B | 5.00% | | 01/01/29 (a) | 1,100,000 | 1,283,436 |
| OHare General Airport Sr Lien Refunding RB Series 2016C | 5.00% | | 01/01/31 (a) | 1,000,000 | 1,175,170 |
| Refunding GO Bonds Series 2014A | 5.00% | | 01/01/35 (a) | 750,000 | 794,513 |
| Chicago Housing Auth | | | |
| GO Bonds Series 2018A | 5.00% | | 01/01/27 | 1,000,000 | 1,227,330 |
| GO Bonds Series 2018A | 5.00% | | 01/01/28 | 1,000,000 | 1,254,260 |
| Community Unit SD #300 |
| GO Refunding Bonds Series 2013 | 5.25% | | 01/01/31 (a) | 4,840,000 | 5,344,280 |
| Dupage Cnty HSD #88 |
| GO Refunding Bonds Series 2016 | 5.00% | | 01/15/26 | 2,500,000 | 3,063,725 |
| Illinois | | | |
| GO Bonds Series 2018 | 5.00% | | 05/01/31 (a) | 1,000,000 | 1,133,100 |
| GO Bonds Series 2020 | 5.38% | | 05/01/23 | 500,000 | 542,330 |
| GO Bonds Series 2020 | 5.50% | | 05/01/24 | 1,000,000 | 1,111,190 |
| GO Bonds Series 2020 | 5.50% | | 05/01/25 | 1,500,000 | 1,704,720 |
| GO Refunding Bonds Series 2016 | 5.00% | | 02/01/28 (a) | 1,500,000 | 1,696,755 |
| GO Refunding Bonds Series 2018B | 5.00% | | 10/01/33 (a) | 1,500,000 | 1,686,705 |
| Illinois Finance Auth | | | |
| Facilities RB (Univ of Illinois) Series 2019A | 5.00% | | 10/01/44 (a) | 500,000 | 599,535 |
| Facilities RB (Univ of Illinois) Series 2019A | 5.00% | | 10/01/49 (a) | 1,000,000 | 1,191,950 |
| Facilities RB (Univ of Illinois) Series 2019A | 5.00% | | 10/01/51 (a) | 600,000 | 714,132 |
| RB (OSF Healthcare) Series 2015A | 5.00% | | 11/15/23 | 450,000 | 507,501 |
| RB (Rosalind Franklin Univ) Series 2017A | 5.00% | | 08/01/30 (a) | 600,000 | 673,686 |
| RB (Rosalind Franklin Univ) Series 2017A | 5.00% | | 08/01/33 (a) | 960,000 | 1,061,597 |
| RB (Rosalind Franklin Univ) Series 2017A | 5.00% | | 08/01/34 (a) | 1,330,000 | 1,467,376 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Refunding RB (Southern Illinois Healthcare Enterprises) Series 2017C | 5.00% | | 03/01/26 | 700,000 | 853,230 |
| Refunding RB (Southern Illinois Healthcare Enterprises) Series 2017C | 5.00% | | 03/01/30 (a) | 400,000 | 487,984 |
| Illinois Sports Facilities Auth | | | |
| State Tax Supported Refunding RB Series 2019 | 5.00% | | 06/15/28 | 1,000,000 | 1,140,890 |
| State Tax Supported Refunding RB Series 2019 | 5.00% | | 06/15/29 | 1,075,000 | 1,232,778 |
| State Tax Supported Refunding RB Series 2019 | 5.00% | | 06/15/30 (a) | 1,000,000 | 1,132,770 |
| Illinois Toll Highway Auth | | | |
| Toll Highway Sr RB Series 2019A | 5.00% | | 01/01/44 (a) | 2,500,000 | 3,099,650 |
| Toll Highway Sr Refunding RB Series 2019C | 5.00% | | 01/01/29 | 2,000,000 | 2,587,500 |
| Toll Highway Sr Refunding RB Series 2019C | 5.00% | | 01/01/30 | 1,000,000 | 1,318,280 |
| Kankakee River Metropolitan Agency |
| Sr Lien Sewage Treatment Facility Refunding RB Series 2016 | 5.00% | | 05/01/26 | 1,305,000 | 1,534,993 |
| Northern Illinois Univ | | | |
| Auxiliary Facilities Refunding RB Series 2020B | 5.00% | | 04/01/29 | 400,000 | 505,596 |
| Auxiliary Facilities Refunding RB Series 2020B | 5.00% | | 04/01/30 | 450,000 | 577,620 |
| Auxiliary Facilities Refunding RB Series 2020B | 5.00% | | 04/01/31 (a) | 500,000 | 637,595 |
| Auxiliary Facilities Refunding RB Series 2020B | 4.00% | | 04/01/35 (a) | 1,050,000 | 1,194,680 |
| Auxiliary Facilities Refunding RB Series 2020B | 4.00% | | 04/01/37 (a) | 600,000 | 676,818 |
| | | | | | 54,976,983 |
| INDIANA 0.3% |
| Indiana Finance Auth | | | |
| Educational Facilities RB (Butler Univ) Series 2014 | 5.00% | | 02/01/21 | 125,000 | 127,195 |
| Educational Facilities RB (Butler Univ) Series 2014 | 5.00% | | 02/01/23 | 150,000 | 162,528 |
| Educational Facilities Refunding RB (Butler Univ) Series 2012A | 5.00% | | 02/01/24 (a) | 1,790,000 | 1,878,945 |
| | | | | | 2,168,668 |
| KANSAS 1.1% |
| Crawford Cnty USD #250 | | | |
| GO Bonds Series 2017 | 5.00% | | 09/01/26 | 250,000 | 315,135 |
| GO Bonds Series 2017 | 5.00% | | 09/01/27 | 450,000 | 583,294 |
| GO Bonds Series 2017 | 5.00% | | 09/01/36 (a) | 505,000 | 623,736 |
| Hutchinson | | | |
| Hospital Facilities RB (Hutchinson Regional Medical Center) Series 2016 | 5.00% | | 12/01/27 (a) | 375,000 | 420,892 |
| Hospital Facilities RB (Hutchinson Regional Medical Center) Series 2016 | 5.00% | | 12/01/28 (a) | 400,000 | 446,564 |
| Hospital Facilities RB (Hutchinson Regional Medical Center) Series 2016 | 5.00% | | 12/01/29 (a) | 440,000 | 489,790 |
| Hospital Facilities RB (Hutchinson Regional Medical Center) Series 2016 | 5.00% | | 12/01/30 (a) | 445,000 | 493,056 |
| Hospital Facilities RB (Hutchinson Regional Medical Center) Series 2016 | 5.00% | | 12/01/31 (a) | 250,000 | 275,448 |
| Johnson & Miami County USD No. 230 | | | |
| GO Bonds Series 2018A | 5.00% | | 09/01/26 | 250,000 | 314,630 |
| GO Bonds Series 2018A | 5.00% | | 09/01/27 | 800,000 | 1,032,544 |
| GO Bonds Series 2018A | 5.00% | | 09/01/31 (a) | 2,575,000 | 3,272,387 |
| | | | | | 8,267,476 |
| KENTUCKY 0.1% |
| Kentucky | | | |
| COP 2015 | 4.00% | | 06/15/24 | 400,000 | 452,148 |
| COP 2015 | 5.00% | | 06/15/25 | 400,000 | 483,616 |
| | | | | | 935,764 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| LOUISIANA 0.3% |
| Louisiana Public Facilities Auth | | | |
| Refunding RB (Ochsner Clinic Fdn) Series 2015 | 5.00% | | 05/15/21 | 800,000 | 823,832 |
| Refunding RB (Ochsner Clinic Fdn) Series 2017 | 5.00% | | 05/15/27 | 500,000 | 618,175 |
| New Orleans | | | |
| Sewerage Service Refunding RB Series 2014 | 5.00% | | 06/01/21 | 400,000 | 413,836 |
| Sewerage Service Refunding RB Series 2014 | 5.00% | | 06/01/22 | 250,000 | 270,140 |
| | | | | | 2,125,983 |
| MAINE 1.2% |
| Maine Health & Educational Facilites Auth | | | |
| RB (MaineHealth) Series 2020A | 5.00% | | 07/01/30 | 800,000 | 1,057,528 |
| RB (MaineHealth) Series 2020A | 4.00% | | 07/01/36 (a) | 500,000 | 587,645 |
| RB (MaineHealth) Series 2020A | 4.00% | | 07/01/37 (a) | 1,000,000 | 1,170,800 |
| RB (MaineHealth) Series 2020A | 4.00% | | 07/01/38 (a) | 1,250,000 | 1,458,475 |
| RB (MaineHealth) Series 2020A | 4.00% | | 07/01/39 (a) | 1,075,000 | 1,250,279 |
| Portland | | | |
| General Airport Refunding RB Series 2019 | 5.00% | | 01/01/28 | 500,000 | 618,085 |
| General Airport Refunding RB Series 2019 | 5.00% | | 01/01/31 (a) | 500,000 | 631,850 |
| General Airport Refunding RB Series 2019 | 5.00% | | 01/01/32 (a) | 810,000 | 1,016,882 |
| General Airport Refunding RB Series 2019 | 5.00% | | 01/01/33 (a) | 695,000 | 866,616 |
| General Airport Refunding RB Series 2019 | 5.00% | | 01/01/34 (a) | 620,000 | 769,575 |
| | | | | | 9,427,735 |
| MARYLAND 1.7% |
| Maryland |
| GO Bonds First Series 2017A | 5.00% | | 03/15/26 | 5,080,000 | 6,375,959 |
| Maryland Health & Higher Educational Facilities Auth | | | |
| RB (Frederick Health System) Series 2020 | 4.00% | | 07/01/45 (a) | 600,000 | 663,840 |
| RB (Frederick Health System) Series 2020 | 4.00% | | 07/01/50 (a) | 800,000 | 881,352 |
| RB (Meritus Medical Center) Series 2015 | 5.00% | | 07/01/23 | 1,000,000 | 1,113,470 |
| Washington Cnty | | | |
| RB (Diakon Lutheran Social Ministries) Series 2019B | 5.00% | | 01/01/24 | 320,000 | 345,498 |
| RB (Diakon Lutheran Social Ministries) Series 2019B | 5.00% | | 01/01/25 | 550,000 | 606,837 |
| RB (Diakon Lutheran Social Ministries) Series 2019B | 5.00% | | 01/01/27 | 645,000 | 729,540 |
| RB (Diakon Lutheran Social Ministries) Series 2019B | 5.00% | | 01/01/28 | 1,405,000 | 1,611,689 |
| RB (Diakon Lutheran Social Ministries) Series 2019B | 5.00% | | 01/01/29 | 505,000 | 586,684 |
| | | | | | 12,914,869 |
| MASSACHUSETTS 2.9% |
| Massachusetts Development Finance Agency | | | |
| RB (Atrius Health) Series 2019A | 5.00% | | 06/01/39 (a) | 2,500,000 | 2,977,925 |
| RB (Beth Israel Lahey Health) Series 2019K | 5.00% | | 07/01/29 | 500,000 | 648,850 |
| RB (Beth Israel Lahey Health) Series 2019K | 5.00% | | 07/01/31 (a) | 1,120,000 | 1,426,936 |
| RB (Beth Israel Lahey Health) Series 2019K | 5.00% | | 07/01/32 (a) | 500,000 | 632,625 |
| RB (Boston Medical Center) Series 2016E | 5.00% | | 07/01/31 (a) | 2,815,000 | 3,265,456 |
| RB (Boston Medical Center) Series 2017F | 5.00% | | 07/01/28 (a) | 340,000 | 407,993 |
| RB (Lahey Health System) Series 2015F | 5.00% | | 08/15/28 (a) | 950,000 | 1,125,066 |
| RB (Lesley Univ) Series 2019A | 5.00% | | 07/01/35 (a) | 1,065,000 | 1,291,941 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| RB (Lesley Univ) Series 2019A | 5.00% | | 07/01/39 (a) | 1,185,000 | 1,418,315 |
| RB (Simmons Univ) Series 2020M | 4.00% | | 10/01/37 (a) | 1,000,000 | 1,093,580 |
| RB (Wellforce) Series 2019A | 5.00% | | 07/01/24 | 1,200,000 | 1,365,888 |
| RB (Wellforce) Series 2020C | 3.00% | | 10/01/45 (a) | 1,250,000 | 1,281,612 |
| RB (Wellforce) Series 2020C | 4.00% | | 10/01/45 (a) | 750,000 | 860,483 |
| Massachusetts HFA | | | |
| S/F Housing RB Series 183 | 3.50% | | 12/01/46 (a) | 1,870,000 | 1,972,495 |
| S/F Housing RB Series 203 | 4.50% | | 12/01/48 (a) | 1,900,000 | 2,124,675 |
| | | | | | 21,893,840 |
| MICHIGAN 1.2% |
| Grand Rapids | | | |
| Sanitary Sewer System Refunding RB Series 2010 | 5.00% | | 01/01/25 | 600,000 | 718,644 |
| Sanitary Sewer System Refunding RB Series 2010 | 5.00% | | 01/01/27 | 1,145,000 | 1,453,154 |
| Karegnondi Water Auth | | | |
| RB Series 2014A | 5.00% | | 11/01/24 (a) | 1,645,000 | 1,874,330 |
| RB Series 2014A | 5.00% | | 11/01/25 (a) | 1,100,000 | 1,252,240 |
| Michigan Finance Auth |
| Hospital RB (Henry Ford Health System) Series 2019A | 5.00% | | 11/15/48 (a) | 1,000,000 | 1,223,420 |
| Michigan Housing Development Auth |
| S/F Mortgage RB Series 2015A | 4.00% | | 06/01/46 (a) | 1,465,000 | 1,554,262 |
| Wayne Cnty Airport Auth | | | |
| Airport RB Series 2014B | 5.00% | | 12/01/32 (a) | 550,000 | 629,541 |
| Airport RB Series 2014B | 5.00% | | 12/01/33 (a) | 625,000 | 713,725 |
| | | | | | 9,419,316 |
| MINNESOTA 1.3% |
| Center City | | | |
| Health Care Facilities Refunding RB (Hazelden Betty Ford Fdn) Series 2019 | 4.00% | | 11/01/26 | 315,000 | 358,246 |
| Health Care Facilities Refunding RB (Hazelden Betty Ford Fdn) Series 2019 | 4.00% | | 11/01/27 | 250,000 | 287,952 |
| Health Care Facilities Refunding RB (Hazelden Betty Ford Fdn) Series 2019 | 4.00% | | 11/01/28 (a) | 330,000 | 383,071 |
| Health Care Facilities Refunding RB (Hazelden Betty Ford Fdn) Series 2019 | 4.00% | | 11/01/29 (a) | 265,000 | 305,667 |
| Health Care Facilities Refunding RB (Hazelden Betty Ford Fdn) Series 2019 | 4.00% | | 11/01/30 (a) | 250,000 | 286,908 |
| Health Care Facilities Refunding RB (Hazelden Betty Ford Fdn) Series 2019 | 4.00% | | 11/01/31 (a) | 245,000 | 279,072 |
| Health Care Facilities Refunding RB (Hazelden Betty Ford Fdn) Series 2019 | 4.00% | | 11/01/34 (a) | 300,000 | 335,793 |
| Health Care Facilities Refunding RB (Hazelden Betty Ford Fdn) Series 2019 | 4.00% | | 11/01/41 (a) | 375,000 | 412,837 |
| Duluth ISD #709 | | | |
| Refunding COP Series 2019C | 5.00% | | 02/01/24 (e) | 400,000 | 456,804 |
| Refunding COP Series 2019C | 5.00% | | 02/01/25 (e) | 375,000 | 442,684 |
| Refunding COP Series 2019C | 5.00% | | 02/01/26 (e) | 400,000 | 485,812 |
| Maple Grove | | | |
| Health Care Facilities Refunding RB (North Memorial Health) Series 2015 | 4.00% | | 09/01/20 | 600,000 | 600,000 |
| Health Care Facilities Refunding RB (North Memorial Health) Series 2015 | 4.00% | | 09/01/21 | 400,000 | 411,028 |
| Minneapolis |
| Health Care System RB (Fairview Health Services) Series 2018A | 5.00% | | 11/15/36 (a) | 2,500,000 | 3,087,500 |
| Minnesota Higher Educational Facilities Auth | | | |
| RB (Univ of St. Thomas) Series 2019 | 5.00% | | 10/01/29 | 275,000 | 353,603 |
| RB (Univ of St. Thomas) Series 2019 | 5.00% | | 10/01/33 (a) | 400,000 | 497,860 |
| RB (Univ of St. Thomas) Series 2019 | 5.00% | | 10/01/34 (a) | 250,000 | 310,270 |
| RB (Univ of St. Thomas) Series 2019 | 5.00% | | 10/01/35 (a) | 350,000 | 432,474 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Univ of Minnesota |
| General RB Series 2011D | 5.00% | | 12/01/20 (b) | 220,000 | 222,647 |
| | | | | | 9,950,228 |
| MISSISSIPPI 0.4% |
| Mississippi Development Bank | | | |
| Special Obligation (Jackson Public SD) RB Series 2018 | 5.00% | | 10/01/25 | 1,000,000 | 1,211,250 |
| Special Obligation (Jackson Public SD) RB Series 2018 | 5.00% | | 10/01/26 | 590,000 | 733,553 |
| Special Obligation (Jackson Public SD) Refunding RB Series 2012A | 5.00% | | 04/01/28 (a) | 630,000 | 693,668 |
| Mississippi Home Corp |
| Homeownership Mortgage RB Series 2011A | 4.50% | | 06/01/25 (a) | 85,000 | 86,380 |
| | | | | | 2,724,851 |
| MISSOURI 2.9% |
| Independence SD |
| GO Refunding Bonds 2017 | 5.50% | | 03/01/33 (a)(e) | 450,000 | 575,226 |
| Jackson Cnty SD #4 | | | |
| School Building GO Bonds Series 2018A | 5.50% | | 03/01/36 (a)(e) | 5,000,000 | 6,753,300 |
| School Building GO Bonds Series 2018A | 6.00% | | 03/01/38 (a)(e) | 2,440,000 | 3,374,325 |
| Kansas City | | | |
| Sewer System Refunding RB Series 2018B | 5.00% | | 01/01/32 (a) | 650,000 | 826,104 |
| Sewer System Refunding RB Series 2018B | 5.00% | | 01/01/34 (a) | 350,000 | 440,143 |
| Missouri Health & Educational Facilities Auth | | | |
| Educational Facilities RB (Kansas City Univ of Medicine) Series 2017A | 5.00% | | 06/01/35 (a) | 1,000,000 | 1,221,450 |
| Educational Facilities RB (Kansas City Univ of Medicine) Series 2017A | 5.00% | | 06/01/36 (a) | 1,050,000 | 1,275,225 |
| Hospital Facilities RB (CoxHealth) Series 2019A | 5.00% | | 11/15/31 (a) | 2,490,000 | 3,155,477 |
| RB (St Louis College of Pharmacy) Series 2015B | 5.00% | | 05/01/30 (a) | 500,000 | 524,455 |
| RB (St Louis College of Pharmacy) Series 2015B | 5.00% | | 05/01/34 (a) | 350,000 | 363,489 |
| Missouri Housing Development Commission | | | |
| S/F Mortgage RB Series 2017D | 4.00% | | 05/01/47 (a) | 1,190,000 | 1,296,921 |
| S/F Mortgage RB Series 2018A | 4.25% | | 05/01/49 (a) | 2,170,000 | 2,411,912 |
| | | | | | 22,218,027 |
| MONTANA 0.2% |
| Montana Board of Housing |
| S/F Housing RB Series 2018A | 4.00% | | 06/01/49 (a) | 1,545,000 | 1,688,129 |
| NEBRASKA 0.8% |
| Boys Town Village |
| RB (Father Flanagan Boys Home) Series 2017 | 3.00% | | 09/01/28 | 3,365,000 | 3,849,089 |
| Nebraska Investment Finance Auth |
| S/F Housing RB Series 2016A | 3.50% | | 03/01/46 (a) | 1,030,000 | 1,052,258 |
| Papio-Missouri River Natural Resource District | | | |
| Flood Protection & Water Quality Enhancement Refunding Bonds Series 2017 | 4.00% | | 12/15/27 (a)(b) | 250,000 | 267,023 |
| Flood Protection & Water Quality Enhancement Refunding Bonds Series 2017 | 4.00% | | 12/15/28 (a)(b) | 275,000 | 293,725 |
| Flood Protection & Water Quality Enhancement Refunding Bonds Series 2017 | 4.00% | | 12/15/30 (a)(b) | 500,000 | 534,045 |
| | | | | | 5,996,140 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| NEVADA 0.3% |
| Carson City | | | |
| Hospital Refunding RB (Carson Tahoe Regional Healthcare) Series 2017 | 5.00% | | 09/01/20 | 500,000 | 500,000 |
| Hospital Refunding RB (Carson Tahoe Regional Healthcare) Series 2017 | 5.00% | | 09/01/25 | 600,000 | 705,072 |
| Hospital Refunding RB (Carson Tahoe Regional Healthcare) Series 2017 | 5.00% | | 09/01/27 | 605,000 | 738,814 |
| | | | | | 1,943,886 |
| NEW HAMPSHIRE 0.0% |
| New Hampshire HFA |
| S/F Mortgage Acquisition RB Series 2011E | 4.50% | | 01/01/28 (a) | 115,000 | 117,809 |
| NEW JERSEY 3.7% |
| Atlantic City | | | |
| Tax Appeal Refunding Bonds Series 2017A | 5.00% | | 03/01/24 | 200,000 | 229,292 |
| Tax Appeal Refunding Bonds Series 2017A | 5.00% | | 03/01/25 | 300,000 | 355,494 |
| Tax Appeal Refunding Bonds Series 2017A | 5.00% | | 03/01/27 | 250,000 | 312,440 |
| Flemington-Raritan Regional SD |
| GO Refunding Bonds Series 2014 | 4.00% | | 06/15/22 | 635,000 | 677,526 |
| New Jersey Economic Development Auth | | | |
| School Facilities Construction Bonds 2014 Series UU | 5.00% | | 06/15/29 (a) | 1,045,000 | 1,156,689 |
| School Facilities Construction Bonds Series 2018EEE | 5.00% | | 06/15/43 (a) | 2,000,000 | 2,317,580 |
| School Facilities Construction Refunding Bonds Series 2019LLL | 5.00% | | 06/15/34 (a) | 750,000 | 895,365 |
| School Facilities Construction Refunding Bonds Series 2019MMM | 5.00% | | 06/15/33 (a) | 500,000 | 599,070 |
| New Jersey Educational Facilities Auth |
| RBs (Princeton Univ) Series 2016A | 5.00% | | 07/01/25 | 4,555,000 | 5,603,105 |
| New Jersey Housing & Mortgage Finance Agency |
| S/F Housing RB Series 2020E | 3.50% | | 04/01/51 (a) | 3,000,000 | 3,367,260 |
| New Jersey Transportation Trust Fund Auth | | | |
| Transportation Program Notes Series 2014 BB-1 | 5.00% | | 06/15/33 (a) | 4,500,000 | 5,305,455 |
| Transportation System RB Series 2010A | 0.00% | | 12/15/28 (d) | 1,805,000 | 1,447,845 |
| Transportation System RB Series 2019AA | 5.00% | | 06/15/31 (a) | 1,250,000 | 1,489,475 |
| Transportation System RB Series 2019BB | 5.00% | | 06/15/44 (a) | 3,000,000 | 3,474,330 |
| Passaic Cnty Improvement Auth |
| Governmental Loan RB Series 2015 | 5.00% | | 08/01/24 | 505,000 | 596,163 |
| | | | | | 27,827,089 |
| NEW MEXICO 0.4% |
| New Mexico Hospital Equipment Loan Council |
| Hospital System RB (Presbyterian Healthcare Services) Series 2019A | 4.00% | | 08/01/48 (a) | 1,145,000 | 1,304,098 |
| New Mexico Mortgage Finance Auth |
| S/F Mortgage RB Series 2018B | 4.00% | | 01/01/49 (a) | 1,785,000 | 1,966,391 |
| | | | | | 3,270,489 |
| NEW YORK 15.3% |
| Build NYC Resource Corp | | | |
| RB (YMCA of Greater New York) Series 2015 | 5.00% | | 08/01/25 | 250,000 | 290,830 |
| RB (YMCA of Greater New York) Series 2015 | 5.00% | | 08/01/27 (a) | 300,000 | 346,266 |
| RB (YMCA of Greater New York) Series 2015 | 5.00% | | 08/01/30 (a) | 145,000 | 164,982 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Metropolitan Transportation Auth |
| Transportation RB Series 2015A2 | 5.00% | | 11/15/45 (a) | 2,845,000 | 3,298,294 |
| Nassau Cnty Local Economic Assistance Corp | | | |
| RB (Catholic Health Services Long Island) Series 2014 | 5.00% | | 07/01/21 | 500,000 | 517,600 |
| RB (Catholic Health Services Long Island) Series 2014 | 5.00% | | 07/01/25 (a) | 500,000 | 577,220 |
| RB (Catholic Health Services Long Island) Series 2014 | 5.00% | | 07/01/26 (a) | 250,000 | 286,850 |
| New York City | | | |
| GO Bonds Fiscal 2013 Series E | 5.00% | | 08/01/25 (a) | 3,360,000 | 3,737,362 |
| GO Bonds Fiscal 2014 Series B | 5.00% | | 08/01/22 | 1,050,000 | 1,145,162 |
| GO Bonds Fiscal 2014 Series I1 | 5.00% | | 03/01/23 | 1,120,000 | 1,246,459 |
| GO Bonds Fiscal 2021 Series A-1 | 5.00% | | 08/01/32 (a)(c) | 1,500,000 | 1,962,795 |
| GO Bonds Fiscal 2021 Series A-1 | 5.00% | | 08/01/33 (a)(c) | 1,500,000 | 1,949,580 |
| GO Bonds Fiscal Series 2018A | 5.00% | | 08/01/28 (a) | 3,165,000 | 4,009,580 |
| GO Bonds Fiscal Series 2018E-1 | 5.25% | | 03/01/34 (a) | 2,000,000 | 2,508,940 |
| GO Bonds Fiscal Series 2019E | 5.00% | | 08/01/32 (a) | 1,000,000 | 1,265,430 |
| New York City Municipal Water Finance Auth |
| Water & Sewer System 2nd General Resolution RB Fiscal 2020 Series GG-1 | 5.00% | | 06/15/48 (a) | 2,000,000 | 2,561,960 |
| New York City Transitional Finance Auth | | | |
| Building Aid RB Fiscal 2019 Series S3A | 5.00% | | 07/15/35 (a) | 2,000,000 | 2,492,580 |
| Building Aid RB Fiscal 2019 Series S3A | 5.00% | | 07/15/36 (a) | 1,500,000 | 1,862,295 |
| Future Tax Secured Sub RB Fiscal 2011 Series D1 | 5.00% | | 02/01/35 (a) | 5,535,000 | 5,634,077 |
| Future Tax Secured Sub RB Fiscal 2014 Series B1 | 5.00% | | 11/01/23 | 2,200,000 | 2,521,662 |
| Future Tax Secured Sub RB Fiscal 2017 Series E1 | 5.00% | | 02/01/30 (a) | 3,000,000 | 3,736,500 |
| Future Tax Secured Sub RB Fiscal 2017 Series E1 | 5.00% | | 02/01/38 (a) | 5,065,000 | 6,095,322 |
| New York City Trust for Cultural Resources | | | |
| Refunding RB (Juilliard School) Series 2018A | 5.00% | | 01/01/34 (a) | 1,000,000 | 1,285,360 |
| Refunding RB (Juilliard School) Series 2018A | 5.00% | | 01/01/37 (a) | 1,750,000 | 2,220,330 |
| Refunding RB (Juilliard School) Series 2018A | 5.00% | | 01/01/38 (a) | 1,000,000 | 1,264,920 |
| Refunding RB (Lincoln Ctr for the Performing Arts) Series 2020A | 5.00% | | 12/01/32 (a) | 2,000,000 | 2,592,220 |
| Refunding RB (Lincoln Ctr for the Performing Arts) Series 2020A | 4.00% | | 12/01/34 (a) | 1,000,000 | 1,178,040 |
| Refunding RB (Lincoln Ctr for the Performing Arts) Series 2020A | 4.00% | | 12/01/35 (a) | 1,000,000 | 1,172,190 |
| New York State Dormitory Auth | | | |
| RB (Catholic Health System) Series 2019A | 5.00% | | 07/01/34 (a) | 150,000 | 183,369 |
| RB (Catholic Health System) Series 2019A | 4.00% | | 07/01/38 (a) | 925,000 | 1,029,497 |
| RB (Catholic Health System) Series 2019A | 4.00% | | 07/01/39 (a) | 100,000 | 110,973 |
| RB (Montefiore Health) Series 2018A | 5.00% | | 08/01/28 | 1,700,000 | 2,100,095 |
| RB (Rockefeller Univ) Series 2019C | 4.00% | | 07/01/49 (a) | 1,000,000 | 1,163,130 |
| State Personal Income Tax RANs Series 2020B | 5.00% | | 03/31/21 | 5,000,000 | 5,141,050 |
| State Personal Income Tax RB Series 2017B | 5.00% | | 02/15/38 (a) | 1,445,000 | 1,761,007 |
| State Personal Income Tax RB Series 2019A | 5.00% | | 03/15/38 (a) | 3,850,000 | 4,803,491 |
| State Personal Income Tax Refunding RB Series 2012A | 5.00% | | 12/15/24 (a) | 1,300,000 | 1,435,278 |
| State Sales Tax RB Series 2014A | 5.00% | | 03/15/26 (a) | 3,700,000 | 4,298,364 |
| State Sales Tax RB Series 2017A | 5.00% | | 03/15/35 (a)(f) | 6,575,000 | 8,048,392 |
| State Sales Tax RB Series 2018 | 5.00% | | 03/15/34 (a)(f) | 5,000,000 | 6,266,100 |
| New York State Mortgage Agency |
| Mortgage RB Series 226 | 3.50% | | 10/01/50 (a) | 3,475,000 | 3,818,573 |
| New York State Urban Development Corp |
| State Personal Income Tax RB Series 2020C | 5.00% | | 03/15/33 (a) | 1,500,000 | 1,992,420 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Port Auth of New York & New Jersey | | | |
| Consolidated Bonds 221st Series | 5.00% | | 07/15/35 (a) | 2,835,000 | 3,602,094 |
| Consolidated Bonds 221st Series | 4.00% | | 07/15/36 (a) | 2,000,000 | 2,306,900 |
| Consolidated Bonds 221st Series | 4.00% | | 07/15/45 (a) | 3,000,000 | 3,364,200 |
| Sales Tax Asset Receivable Corp |
| RB Fiscal 2015 Series A | 5.00% | | 10/15/31 (a) | 5,330,000 | 6,274,636 |
| | | | | | 115,624,375 |
| NORTH CAROLINA 3.0% |
| North Carolina Capital Facilities Finance Agency | | | |
| Educational Facilities Refunding RB (Meredith College) Series 2018 | 5.00% | | 06/01/24 | 500,000 | 557,005 |
| Educational Facilities Refunding RB (Meredith College) Series 2018 | 5.00% | | 06/01/25 | 500,000 | 567,515 |
| Educational Facilities Refunding RB (Meredith College) Series 2018 | 5.00% | | 06/01/26 | 1,735,000 | 1,996,725 |
| Educational Facilities Refunding RB (Meredith College) Series 2018 | 5.00% | | 06/01/30 (a) | 1,000,000 | 1,123,710 |
| Educational Facilities Refunding RB (Meredith College) Series 2018 | 5.00% | | 06/01/31 (a) | 1,405,000 | 1,569,947 |
| Educational Facilities Refunding RB (Meredith College) Series 2018 | 5.00% | | 06/01/32 (a) | 1,385,000 | 1,539,635 |
| North Carolina Housing Finance Agency |
| Home Ownership RB Series 2009-2 | 4.25% | | 01/01/28 (a) | 20,000 | 20,214 |
| North Carolina Medical Care Commission |
| Health Care Facilities Refunding RB (WakeMed) Series 2012A | 5.00% | | 10/01/21 | 5,000,000 | 5,234,350 |
| North Carolina Turnpike Auth | | | |
| RB (Triangle Expressway) Series 2019 | 5.00% | | 01/01/49 (a) | 3,000,000 | 3,630,230 |
| Triangle Expressway Appropriation RB Series 2019 | 0.00% | | 01/01/45 (a)(d) | 1,700,000 | 838,474 |
| Triangle Expressway Appropriation RB Series 2019 | 0.00% | | 01/01/46 (a)(d) | 1,750,000 | 832,580 |
| Raleigh-Durham Airport Auth | | | |
| Refunding RB Series 2020A | 5.00% | | 05/01/31 (a) | 435,000 | 565,644 |
| Refunding RB Series 2020A | 5.00% | | 05/01/33 (a) | 1,000,000 | 1,282,780 |
| Winston-Salem |
| Water & Sewer System Refunding RB Series 2020A | 5.00% | | 06/01/30 | 2,000,000 | 2,794,420 |
| | | | | | 22,553,229 |
| NORTH DAKOTA 0.5% |
| West Fargo | | | |
| Refunding Bonds Series 2019B | 4.00% | | 05/01/25 | 400,000 | 461,124 |
| Refunding Bonds Series 2019B | 4.00% | | 05/01/26 | 465,000 | 547,784 |
| Refunding Bonds Series 2019B | 4.00% | | 05/01/27 (a) | 425,000 | 495,491 |
| Williston | | | |
| Public Safety Sales Tax RB Series 2018A | 5.00% | | 07/15/21 | 250,000 | 259,165 |
| Public Safety Sales Tax RB Series 2018A | 5.00% | | 07/15/22 | 500,000 | 536,750 |
| Public Safety Sales Tax RB Series 2018A | 4.00% | | 07/15/23 (a) | 1,650,000 | 1,740,486 |
| | | | | | 4,040,800 |
| OHIO 1.7% |
| Buckeye Tobacco Settlement Financing Auth |
| Tobacco Settlement Refunding Bonds Series 2020A-2 | 5.00% | | 06/01/34 (a) | 5,000,000 | 6,455,650 |
| Butler Cnty |
| Hospital Facilities Refunding RB (UC Health) Series 2017 | 5.00% | | 11/15/30 (a) | 1,000,000 | 1,224,170 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Cleveland | | | |
| Airport System RB Series 2019B | 5.00% | | 01/01/26 | 1,045,000 | 1,235,984 |
| Water RB Series 2020FF | 5.00% | | 01/01/26 | 1,180,000 | 1,464,805 |
| Water RB Series 2020FF | 5.00% | | 01/01/28 | 800,000 | 1,049,008 |
| Cleveland-Cuyahoga Cnty Port Auth |
| Development Refunding RB (Cleveland State Univ) Series 2019 | 4.00% | | 08/01/44 (a) | 625,000 | 687,525 |
| Hamilton Cnty | | | |
| Hospital Facilities RB (UC Health) Series 2014 | 5.00% | | 02/01/23 | 275,000 | 301,895 |
| Hospital Facilities RB (UC Health) Series 2014 | 5.00% | | 02/01/24 | 405,000 | 460,311 |
| | | | | | 12,879,348 |
| OKLAHOMA 1.1% |
| Norman Regional Hospital Auth |
| Hospital RB Series 2019 | 5.00% | | 09/01/45 (a) | 1,450,000 | 1,716,104 |
| Oklahoma Development Finance Auth | | | |
| Lease RB Series 2014A | 4.00% | | 06/01/27 (a) | 735,000 | 818,209 |
| Limited Obligation RB (Gilcrease Expressway West) Series 2020 | 1.63% | | 07/06/23 (a) | 4,500,000 | 4,493,250 |
| Tulsa Cnty Industrial Auth |
| Educational Facilities Lease RB (Tulsa Cnty ISD #11) Series 2018 | 5.00% | | 09/01/23 | 1,000,000 | 1,134,860 |
| | | | | | 8,162,423 |
| OREGON 4.6% |
| Beaverton SD #48J |
| GO Bonds Series 2017D | 5.00% | | 06/15/36 (a)(e) | 2,920,000 | 3,636,276 |
| Central Point SD #6 | | | |
| GO Bonds Series 2019B | 0.00% | | 06/15/40 (a)(d)(e) | 705,000 | 403,359 |
| GO Bonds Series 2019B | 0.00% | | 06/15/41 (a)(d)(e) | 710,000 | 389,286 |
| GO Bonds Series 2019B | 0.00% | | 06/15/42 (a)(d)(e) | 610,000 | 320,878 |
| GO Bonds Series 2019B | 0.00% | | 06/15/43 (a)(d)(e) | 815,000 | 411,404 |
| GO Bonds Series 2019B | 0.00% | | 06/15/45 (a)(d)(e) | 985,000 | 458,153 |
| Corvallis SD #509J |
| GO Bonds Series 2018A | 5.00% | | 06/15/38 (a)(e) | 1,000,000 | 1,259,590 |
| Forest Grove | | | |
| Campus Refunding & RB (Pacific Univ) Series 2014A | 5.25% | | 05/01/34 (a) | 1,625,000 | 1,680,721 |
| Campus Refunding & RB (Pacific Univ) Series 2014A | 5.00% | | 05/01/40 (a) | 745,000 | 764,318 |
| Campus Refunding & RB (Pacific Univ) Series 2015A | 5.00% | | 05/01/22 | 90,000 | 94,927 |
| Campus Refunding & RB (Pacific Univ) Series 2015A | 5.00% | | 05/01/23 | 170,000 | 182,871 |
| Campus Refunding & RB (Pacific Univ) Series 2015A | 5.00% | | 05/01/24 | 350,000 | 384,899 |
| Campus Refunding & RB (Pacific Univ) Series 2015A | 5.00% | | 05/01/25 | 145,000 | 162,716 |
| Gresham-Barlow SD #10Jt | | | |
| GO Bonds Series 2019 | 0.00% | | 06/15/34 (a)(d)(e) | 400,000 | 286,876 |
| GO Bonds Series 2019 | 0.00% | | 06/15/35 (a)(d)(e) | 450,000 | 309,807 |
| GO Bonds Series 2019 | 0.00% | | 06/15/36 (a)(d)(e) | 500,000 | 329,740 |
| GO Bonds Series 2019 | 0.00% | | 06/15/37 (a)(d)(e) | 500,000 | 315,835 |
| Hermiston SD #8R | | | |
| Refunding GO Bonds Series 2020A | 0.00% | | 06/15/28 (d)(e) | 1,950,000 | 1,780,233 |
| Refunding GO Bonds Series 2020A | 0.00% | | 06/15/35 (a)(d)(e) | 1,400,000 | 998,564 |
| Medford Hospital Facilities Auth | | | |
| Hospital Facilities RB (Asante) Series 2020A | 4.00% | | 08/15/39 (a) | 1,000,000 | 1,168,320 |
| Hospital Facilities RB (Asante) Series 2020A | 4.00% | | 08/15/50 (a) | 1,610,000 | 1,846,074 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| North Marion SD #15 | | | |
| GO Bonds Series 2018A | 0.00% | | 06/15/38 (a)(d)(e) | 80,000 | 46,834 |
| GO Bonds Series 2018A | 0.00% | | 06/15/40 (a)(d)(e) | 400,000 | 212,824 |
| GO Bonds Series 2018B | 5.00% | | 06/15/32 (a)(e) | 350,000 | 453,051 |
| Oregon Facilities Auth | | | |
| Refunding RB (Legacy Health) Series 2011A | 5.25% | | 05/01/21 | 2,000,000 | 2,062,320 |
| Refunding RB (Samaritan Health Services) Series 2016A | 5.00% | | 10/01/32 (a) | 1,250,000 | 1,467,787 |
| Phoenix-Talent SD #4 |
| GO Bonds Series 2018 | 0.00% | | 06/15/32 (a)(d)(e) | 1,000,000 | 763,080 |
| Port Morrow | | | |
| GO Obligations Series 2016 | 5.00% | | 12/01/30 (a) | 330,000 | 368,194 |
| GO Obligations Series 2016 | 5.00% | | 12/01/31 (a) | 375,000 | 418,294 |
| GO Obligations Series 2016 | 5.00% | | 12/01/36 (a) | 1,155,000 | 1,281,334 |
| Port of Portland | | | |
| Airport Refunding RB Series 26C | 5.00% | | 07/01/21 | 1,760,000 | 1,818,502 |
| Airport Refunding RB Series 26C | 5.00% | | 07/01/22 | 1,100,000 | 1,180,850 |
| Salem Hospital Facility Auth |
| RB (Salem Health) Series 2019A | 5.00% | | 05/15/26 | 2,180,000 | 2,670,871 |
| Seaside |
| Transient Lodging Tax RB Series 2018 | 5.00% | | 12/15/37 (a) | 1,875,000 | 2,318,287 |
| West Linn-Wilsonville SD #3Jt | | | |
| GO Bonds Series 2020A | 0.00% | | 06/15/35 (a)(d)(e) | 1,250,000 | 905,237 |
| GO Bonds Series 2020A | 0.00% | | 06/15/40 (a)(d)(e) | 1,200,000 | 729,108 |
| GO Bonds Series 2020A | 0.00% | | 06/15/41 (a)(d)(e) | 1,500,000 | 880,170 |
| | | | | | 34,761,590 |
| PENNSYLVANIA 1.5% |
| Beaver Cnty |
| GO Bonds Series 2017 | 4.00% | | 04/15/28 | 2,135,000 | 2,538,921 |
| Delaware Cnty Auth | | | |
| RB (Cabrini Univ) Series 2017 | 5.00% | | 07/01/24 | 1,020,000 | 1,090,921 |
| RB (Cabrini Univ) Series 2017 | 5.00% | | 07/01/27 | 735,000 | 810,757 |
| RB (Cabrini Univ) Series 2017 | 5.00% | | 07/01/31 (a) | 1,405,000 | 1,520,547 |
| Pennsylvania Higher Educational Facilities Auth | | | |
| RB (Duquesne Univ) Series 2019A | 4.00% | | 03/01/37 (a) | 500,000 | 571,245 |
| RB (Duquesne Univ) Series 2019A | 5.00% | | 03/01/38 (a) | 175,000 | 215,556 |
| Philadelphia | | | |
| GO Refunding Bonds Series 2019A | 5.00% | | 08/01/25 | 745,000 | 897,218 |
| GO Refunding Bonds Series 2019A | 5.00% | | 08/01/26 | 1,000,000 | 1,236,040 |
| GO Refunding Bonds Series 2019A | 5.00% | | 08/01/27 | 500,000 | 633,900 |
| GO Refunding Bonds Series 2019A | 5.00% | | 08/01/28 | 300,000 | 388,803 |
| GO Refunding Bonds Series 2019A | 5.00% | | 08/01/29 | 245,000 | 324,199 |
| GO Refunding Bonds Series 2019A | 5.00% | | 08/01/30 | 285,000 | 384,100 |
| GO Refunding Bonds Series 2019A | 5.00% | | 08/01/31 | 300,000 | 412,296 |
| | | | | | 11,024,503 |
| RHODE ISLAND 0.1% |
| Rhode Island Housing & Mortgage Finance Corp |
| Homeownership Opportunity RB Series 67B | 3.50% | | 10/01/46 (a) | 595,000 | 614,980 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| SOUTH CAROLINA 0.3% |
| Kershaw Cnty Public Schools Foundation |
| Installment Purchase Refunding RB Series 2015 | 5.00% | | 12/01/22 | 800,000 | 877,312 |
| Univ of South Carolina |
| Higher Education RB Series 2015 | 5.00% | | 05/01/24 | 1,000,000 | 1,163,790 |
| | | | | | 2,041,102 |
| SOUTH DAKOTA 0.1% |
| Sioux Falls SD #49-5 | | | |
| LT Capital Outlay Refunding Certificates Series 2017A | 3.00% | | 08/01/28 (a) | 300,000 | 339,849 |
| LT Capital Outlay Refunding Certificates Series 2017B | 3.00% | | 08/01/28 (a) | 425,000 | 481,453 |
| LT Capital Outlay Refunding Certificates Series 2017C | 5.00% | | 08/01/22 | 150,000 | 163,777 |
| | | | | | 985,079 |
| TENNESSEE 0.3% |
| Chattanooga-Hamilton Cnty Hospital Auth | | | |
| Hospital Refunding & RB (Erlanger Health) Series 2014A | 5.00% | | 10/01/23 | 450,000 | 496,715 |
| Hospital Refunding & RB (Erlanger Health) Series 2014A | 5.00% | | 10/01/24 | 600,000 | 681,000 |
| Hospital Refunding & RB (Erlanger Health) Series 2014A | 5.00% | | 10/01/25 (a) | 950,000 | 1,070,118 |
| | | | | | 2,247,833 |
| TEXAS 6.0% |
| Arlington Higher Education Finance Corp |
| Education RB (Uplift Education) Series 2018A | 5.00% | | 12/01/28 (a)(e) | 200,000 | 247,198 |
| Atlanta ISD | | | |
| ULT Refunding GO Bonds Series 2020 | 4.00% | | 08/15/26 (e) | 310,000 | 370,571 |
| ULT Refunding GO Bonds Series 2020 | 4.00% | | 08/15/27 (e) | 325,000 | 396,246 |
| ULT Refunding GO Bonds Series 2020 | 4.00% | | 08/15/28 (e) | 340,000 | 421,294 |
| ULT Refunding GO Bonds Series 2020 | 3.00% | | 08/15/30 (a)(e) | 365,000 | 420,889 |
| ULT Refunding GO Series 2020 | 4.00% | | 08/15/25 (e) | 300,000 | 350,667 |
| Brady ISD |
| ULT GO Refunding Bonds Series 2015 | 5.00% | | 08/15/24 (e) | 170,000 | 200,981 |
| Central Texas Regional Mobility Auth | | | |
| Sr Lien RB Series 2015A | 5.00% | | 01/01/27 (a) | 1,100,000 | 1,308,516 |
| Sr Lien RB Series 2015A | 5.00% | | 01/01/30 (a) | 1,520,000 | 1,774,950 |
| Corpus Christi | | | |
| Utility System Jr Lien Refunding & RB Series 2020A | 5.00% | | 07/15/27 | 300,000 | 384,744 |
| Utility System Jr Lien Refunding & RB Series 2020A | 5.00% | | 07/15/28 | 565,000 | 739,014 |
| Utility System Jr Lien Refunding & RB Series 2020A | 5.00% | | 07/15/29 | 1,000,000 | 1,336,990 |
| Dallas-Fort Worth International Airport | | | |
| Airport RB Series 2013B | 5.00% | | 11/01/38 (a) | 2,300,000 | 2,473,926 |
| Airport Refunding RB Series 2012B | 5.00% | | 11/01/22 (a)(b) | 1,245,000 | 1,254,948 |
| Jt Refunding RB Series 2020A | 5.00% | | 11/01/29 | 2,500,000 | 3,329,200 |
| Jt Refunding RB Series 2020A | 4.00% | | 11/01/34 (a) | 1,000,000 | 1,198,530 |
| Donna ISD | | | |
| ULT Refunding Bonds Series 2019 | 5.00% | | 02/15/27 (e) | 775,000 | 995,363 |
| ULT Refunding Bonds Series 2019 | 5.00% | | 02/15/28 (e) | 425,000 | 560,779 |
| ULT Refunding Bonds Series 2019 | 5.00% | | 02/15/29 (e) | 575,000 | 777,429 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Falls City ISD |
| ULT GO Bonds Series 2014 | 5.00% | | 08/15/30 (a)(e) | 930,000 | 969,999 |
| Forney ISD |
| ULT GO Refunding Bonds Series 2015 | 5.00% | | 08/15/32 (a)(e) | 400,000 | 482,508 |
| Lewisville ISD |
| ULT Refunding GO Bonds Series 2020 | 5.00% | | 08/15/23 (e) | 2,500,000 | 2,853,700 |
| North Texas Tollway Auth |
| System RB Series 2011A | 5.00% | | 09/01/21 (b) | 500,000 | 524,050 |
| Pearland |
| GO Refunding Bonds Series 2015 | 5.00% | | 03/01/24 | 1,650,000 | 1,914,627 |
| Seguin ISD |
| ULT GO Refunding Bonds Series 2016 | 5.00% | | 08/15/28 (a)(e) | 445,000 | 540,177 |
| Spring Branch ISD |
| ULT GO Bonds Series 2019 | 5.00% | | 02/01/28 (e) | 620,000 | 813,626 |
| Spring ISD | | | |
| ULT Refunding GO Bonds Series 2020 | 5.00% | | 08/15/21 (e) | 800,000 | 836,848 |
| ULT Refunding GO Bonds Series 2020 | 5.00% | | 08/15/22 (e) | 750,000 | 820,440 |
| ULT Refunding GO Bonds Series 2020 | 5.00% | | 08/15/23 (e) | 625,000 | 712,831 |
| ULT Refunding GO Bonds Series 2020 | 5.00% | | 08/15/24 (e) | 1,000,000 | 1,187,450 |
| ULT Refunding GO Bonds Series 2020 | 5.00% | | 08/15/25 (e) | 1,000,000 | 1,228,700 |
| ULT Refunding GO Bonds Series 2020 | 5.00% | | 08/15/26 (e) | 1,000,000 | 1,263,690 |
| Texas |
| TRAN 2020 | 4.00% | | 08/26/21 (c) | 5,000,000 | 5,187,050 |
| Texas Dept of Housing & Community Affairs | | | |
| Residential Mortgage RB Series 2019A | 4.75% | | 01/01/49 (a) | 1,920,000 | 2,178,739 |
| S/F Mortgage RB Series 2018A | 4.75% | | 03/01/49 (a) | 1,390,000 | 1,568,267 |
| Texas State Affordable Housing Corp | | | |
| S/F Mortgage RB Series 2011B | 4.45% | | 09/01/28 (a) | 125,000 | 129,409 |
| S/F Mortgage RB Series 2019A | 4.25% | | 03/01/49 (a) | 1,900,000 | 2,130,071 |
| Texas Water Dev Brd | | | |
| State Revolving Fund RB Series 2020 | 5.00% | | 08/01/23 | 500,000 | 569,205 |
| State Revolving Fund RB Series 2020 | 5.00% | | 08/01/24 | 750,000 | 888,285 |
| | | | | | 45,341,907 |
| UTAH 0.1% |
| Utah Board of Regents | | | |
| Student Building Fee RB Series 2018 | 5.00% | | 03/01/27 (a) | 360,000 | 433,847 |
| Student Building Fee RB Series 2018 | 5.00% | | 03/01/28 (a) | 425,000 | 511,551 |
| | | | | | 945,398 |
| VERMONT 1.1% |
| Vermont HFA | | | |
| Mortgage RB Series 2011A | 4.50% | | 02/01/26 (a) | 300,000 | 306,975 |
| Multiple Purpose Bonds Series 2017D | 4.00% | | 05/01/48 (a) | 955,000 | 1,026,014 |
| Multiple Purpose Bonds Series 2018A | 4.00% | | 11/01/48 (a) | 4,325,000 | 4,716,715 |
| Multiple Purpose Bonds Series 2018C | 4.75% | | 11/01/48 (a) | 1,890,000 | 2,129,973 |
| | | | | | 8,179,677 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| VIRGINIA 0.7% |
| Chesapeake Bay Bridge & Tunnel District |
| BAN 2019 | 5.00% | | 11/01/23 | 4,250,000 | 4,778,233 |
| Prince William Cnty IDA |
| RB (George Mason Univ) Series 2011AA | 5.50% | | 09/01/34 (a)(b) | 220,000 | 231,451 |
| Richmond Metropolitan Auth |
| Expressway Refunding & RB Series 1998 | 5.25% | | 07/15/22 (b) | 600,000 | 635,808 |
| | | | | | 5,645,492 |
| WASHINGTON 4.6% |
| Energy Northwest | | | |
| Electric Refunding RBs Series 2020A | 5.00% | | 07/01/27 | 1,000,000 | 1,297,400 |
| Electric Refunding RBs Series 2020A | 5.00% | | 07/01/28 | 3,585,000 | 4,758,370 |
| King Cnty Public Hospital District #2 | | | |
| LT GO Refunding Bonds (EvergreenHealth) Series 2015 | 5.00% | | 12/01/22 | 1,755,000 | 1,939,170 |
| LT GO Refunding Bonds (EvergreenHealth) Series 2015 | 5.00% | | 12/01/24 | 690,000 | 821,473 |
| Lake Washington SD #414 |
| ULT Refunding GO Bonds Series 2020 | 4.00% | | 12/01/28 (e)(f) | 10,000,000 | 12,607,600 |
| Mason Cnty Public Hospital District #1 |
| Hospital RB Series 2018 | 5.00% | | 12/01/48 (a) | 2,000,000 | 2,312,940 |
| Moses Lake SD #161 | | | |
| ULT GO Bonds Series 2018 | 5.00% | | 12/01/33 (a)(e) | 1,000,000 | 1,276,790 |
| ULT GO Bonds Series 2018 | 5.00% | | 12/01/34 (a)(e) | 1,000,000 | 1,273,250 |
| ULT GO Bonds Series 2018 | 5.00% | | 12/01/35 (a)(e) | 1,250,000 | 1,585,437 |
| Ocosta SD #172 | | | |
| ULT GO Bonds 2013 | 3.13% | | 12/01/20 (e) | 65,000 | 65,456 |
| ULT GO Bonds 2013 | 5.00% | | 12/01/23 (e) | 340,000 | 391,581 |
| Port of Bellingham | | | |
| Refunding RB 2019 | 5.00% | | 12/01/27 | 500,000 | 624,135 |
| Refunding RB 2019 | 5.00% | | 12/01/28 | 460,000 | 582,595 |
| Refunding RB 2019 | 5.00% | | 12/01/29 (a) | 500,000 | 635,465 |
| Refunding RB 2019 | 5.00% | | 12/01/30 (a) | 625,000 | 789,338 |
| Tukwila SD #406 |
| ULT GO Series 2018 | 5.00% | | 12/01/37 (a)(e) | 2,880,000 | 3,617,424 |
| | | | | | 34,578,424 |
| WEST VIRGINIA 0.4% |
| West Virginia Hospital Finance Auth | | | |
| Hospital Refunding RB (Cabell Huntington Hospital) Series 2018A | 5.00% | | 01/01/35 (a) | 1,400,000 | 1,700,650 |
| Hospital Refunding RB (Cabell Huntington Hospital) Series 2018A | 5.00% | | 01/01/36 (a) | 1,400,000 | 1,691,410 |
| | | | | | 3,392,060 |
| WISCONSIN 0.6% |
| Wisconsin Health & Educational Facilities Auth | | | |
| RB (Franciscan Sisters of Christian Charity) Series 2017A | 5.00% | | 09/01/31 (a) | 1,000,000 | 1,171,120 |
| RB (Franciscan Sisters of Christian Charity) Series 2017A | 5.00% | | 09/01/32 (a) | 1,025,000 | 1,189,881 |
| RB (Thedacare) Series 2015 | 5.00% | | 12/15/21 | 200,000 | 211,416 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| RB (Thedacare) Series 2015 | 5.00% | | 12/15/22 | 1,045,000 | 1,150,211 |
| RB (UnityPoint Health) Series 2014A | 5.00% | | 12/01/24 (a) | 1,000,000 | 1,174,620 |
| | | | | | 4,897,248 |
| Total Fixed-Rate Obligations |
| (Cost $612,847,500) | | | | | 649,738,067 |
|
| Variable-Rate Obligations 14.6% of net assets |
| ARIZONA 0.4% |
| Arizona Health Facilities Auth |
| Refunding RB (Phoenix Childrens Hospital) Series 2013A3 | | | | | |
| (SIFMA Municipal Swap Index + 1.85%) | 1.94% | | 02/01/48 (a) | 3,000,000 | 3,053,430 |
| CALIFORNIA 1.3% |
| Bay Area Toll Auth | | | |
| Toll Bridge RB Series 2017H | 2.13% | | 04/01/53 (a)(g) | 3,000,000 | 3,165,330 |
| Toll Bridge RB Series 2018A | 2.63% | | 04/01/45 (a)(g) | 3,000,000 | 3,291,840 |
| California Health Facilities Financing Auth |
| RB (Adventist Health System) Series 2011A | 3.00% | | 03/01/41 (a)(g) | 3,275,000 | 3,440,715 |
| | | | | | 9,897,885 |
| COLORADO 1.6% |
| Colorado Health Facilities Auth |
| Hospital RB (AdventHealth) Series 2019B | 5.00% | | 11/15/49 (a)(g) | 4,000,000 | 5,026,520 |
| Denver |
| Airport System RB Series 2019D | 5.00% | | 11/15/31 (a)(g) | 1,750,000 | 1,914,640 |
| Univ of Colorado |
| Refunding RB Series 2019C | 2.00% | | 06/01/54 (a)(g) | 5,000,000 | 5,300,300 |
| | | | | | 12,241,460 |
| DISTRICT OF COLUMBIA 0.4% |
| District of Columbia Water & Sewer Auth |
| Public Utility Sub Lien RB Series 2019C | 1.75% | | 10/01/54 (a)(g) | 3,000,000 | 3,117,780 |
| FLORIDA 1.1% |
| Florida Development Finance Corp |
| Surface Transportation Facility RB (Virgin Trains USA) Series 2019B | 0.55% | | 01/01/49 (a)(e)(g)(h) | 7,000,000 | 6,999,720 |
| Hillsborough Cnty IDA |
| Health System RB (Baycare Health) Series 2020D | 0.04% | | 11/15/42 (a)(e)(h) | 900,000 | 900,000 |
| | | | | | 7,899,720 |
| GEORGIA 0.7% |
| Main St Natural Gas Inc |
| Gas Supply RB Series 2018E | | | | | |
| (SIFMA Municipal Swap Index + 0.57%) | 0.66% | | 08/01/48 (a) | 5,000,000 | 4,990,200 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| IOWA 0.8% |
| Public Energy Financing Auth |
| Gas Project RB Series 2019 | 5.00% | | 09/01/49 (a)(e)(g) | 5,000,000 | 6,105,500 |
| LOUISIANA 0.4% |
| Louisiana Local Government Environmental Facilities & Community Development Auth |
| RB (BASF Corp) Series 2000A | 0.47% | | 12/01/30 (a)(h) | 3,000,000 | 3,000,000 |
| MONTANA 0.8% |
| Montana Facility Finance Auth |
| RB (Billings Clinic) Series 2018C | | | | | |
| (SIFMA Municipal Swap Index + 0.55%) | 0.64% | | 08/15/37 (a) | 3,100,000 | 3,096,683 |
| Montana State Board of Regents |
| Educational Facilities Refunding RB (Montana State Univ) Series 2012A | | | | | |
| (SIFMA Municipal Swap Index + 0.45%) | 0.54% | | 11/15/35 (a) | 3,225,000 | 3,187,364 |
| | | | | | 6,284,047 |
| NEW YORK 2.6% |
| New York City |
| GO Bonds Fiscal 2018 Series B5 | 0.03% | | 10/01/46 (a)(e)(h) | 4,740,000 | 4,740,000 |
| New York City Municipal Water Finance Auth |
| Water & Sewer System 2nd Resolution RB Fiscal 2015 Series BB4 | 0.03% | | 06/15/50 (a)(e)(h) | 2,080,000 | 2,080,000 |
| New York City Transitional Finance Auth | | | |
| Future Tax Secured Sub Bonds Fiscal 2010 Series A1 | 0.05% | | 05/01/34 (a)(e)(h) | 1,700,000 | 1,700,000 |
| Future Tax Secured Sub Bonds Fiscal 2014 Series D3 | 0.04% | | 02/01/44 (a)(e)(h) | 500,000 | 500,000 |
| Future Tax Secured Sub Bonds Fiscal 2019 Series A4 | 0.02% | | 08/01/45 (a)(e)(h) | 7,175,000 | 7,175,000 |
| New York Liberty Development Corp |
| RB (Goldman Sachs Headquarters) Series 2005 | 0.59% | | 10/01/29 (a)(e)(i)(j) | 3,750,000 | 3,750,000 |
| | | | | | 19,945,000 |
| OHIO 0.1% |
| Ohio |
| Hospital RB (Cleveland Clinic Health System) Series 2019E | 0.02% | | 01/01/52 (a)(e)(h) | 915,000 | 915,000 |
| OREGON 1.5% |
| Marion & Polk Cnty SD | | | |
| GO Bonds Series 2020B | 0.00% | | 06/15/33 (a)(e)(k) | 1,500,000 | 1,937,415 |
| GO Bonds Series 2020B | 0.00% | | 06/15/34 (a)(e)(k) | 1,000,000 | 1,286,960 |
| Oregon Business Development Commission |
| Recovery Zone Facility Bonds (Intel Corp) Series 232 | 2.40% | | 12/01/40 (a)(g) | 3,000,000 | 3,157,440 |
| St. Helens SD #502 |
| GO Bonds Series 2020B | 0.00% | | 06/15/45 (a)(e)(k) | 1,665,000 | 1,937,344 |
| Umatilla SD #6R | | | |
| GO Bonds Series 2017 | 0.00% | | 06/15/29 (a)(e)(k) | 340,000 | 378,002 |
| GO Bonds Series 2017 | 0.00% | | 06/15/30 (a)(e)(k) | 300,000 | 331,665 |
| GO Bonds Series 2017 | 0.00% | | 06/15/31 (a)(e)(k) | 300,000 | 329,931 |
| GO Bonds Series 2017 | 0.00% | | 06/15/32 (a)(e)(k) | 350,000 | 382,620 |
| GO Bonds Series 2017 | 0.00% | | 06/15/33 (a)(e)(k) | 520,000 | 565,687 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| GO Bonds Series 2017 | 0.00% | | 06/15/34 (a)(e)(k) | 350,000 | 379,687 |
| GO Bonds Series 2017 | 0.00% | | 06/15/35 (a)(e)(k) | 410,000 | 441,816 |
| | | | | | 11,128,567 |
| SOUTH CAROLINA 0.3% |
| South Carolina Educational Facilities Auth |
| Educational Facilities RB (Wofford College) Series 2007B | 2.38% | | 04/01/27 (a)(g) | 1,810,000 | 1,861,893 |
| TEXAS 2.0% |
| Deer Park ISD |
| ULT GO Bonds Series 2018 | 1.55% | | 10/01/42 (a)(e)(g) | 1,660,000 | 1,661,660 |
| Denton ISD |
| ULT GO Series 2014B | 2.00% | | 08/01/44 (a)(e)(g) | 2,000,000 | 2,107,200 |
| Fort Bend ISD |
| ULT GO Refunding Bonds Series 2020B | 0.88% | | 08/01/50 (a)(e)(g) | 3,000,000 | 3,024,390 |
| Northside ISD |
| ULT GO Series 2019 | 1.60% | | 08/01/49 (a)(e)(g) | 2,980,000 | 3,086,654 |
| San Antonio |
| Water System Jr Lien RB Series 2019A | 2.63% | | 05/01/49 (a)(g) | 5,000,000 | 5,346,750 |
| | | | | | 15,226,654 |
| WASHINGTON 0.4% |
| King Cnty |
| Sewer Jr Lien RB Series 2012 | 2.60% | | 01/01/43 (a)(g) | 3,000,000 | 3,028,980 |
| WISCONSIN 0.2% |
| Wisconsin Health & Educational Facilities Auth |
| RB (Advocate Aurora Health) Series 2018C4 | | | | | |
| (SIFMA Municipal Swap Index + 0.65%) | 0.74% | | 08/15/54 (a) | 1,700,000 | 1,693,897 |
| Total Variable-Rate Obligations |
| (Cost $107,833,133) | | | | | 110,390,013 |
| (a) | The effective maturity may be shorter than the final maturity shown because the security is subject to a put, demand or call feature. |
| (b) | Refunded bond. |
| (c) | Security or a portion of the security purchased on a delayed-delivery or when-issued basis. |
| (d) | Zero coupon bond. |
| (e) | Credit-enhanced or liquidity-enhanced. |
| (f) | All or a portion of this security is designated as collateral for delayed-delivery securities. |
| (g) | Bond currently pays a fixed coupon rate and will be remarketed at a to be determined rate at the end of the current fixed rate term. |
| (h) | VRDN is a municipal security which allows holders to sell their security through a put or tender feature, at par value plus accrued interest. The interest rate resets on a periodic basis, the majority of which are weekly but may be daily or monthly. Unless a reference rate and spread is shown parenthetically, the Remarketing Agent, generally a dealer, determines the interest rate for the security at each interest rate reset date. The rate is typically based on the SIFMA Municipal Swap Index. |
| (i) | TOB is a synthetically created VRDN where the owner of a long-term bond places the bond in a trust in combination with a liquidity facility. The trust then sells certificates which mirror the VRDN sold directly by a municipal issuer. VRDN is a municipal security which allows holders to sell their security through a put or tender feature, at par value plus accrued interest. The interest rate resets on a periodic basis, the majority of which are weekly but may be daily or monthly. Unless a reference rate and spread is shown parenthetically, the Remarketing Agent, generally a dealer, determines the interest rate for the security at each interest rate reset date. The rate is typically based on the SIFMA Municipal Swap Index. |
| (j) | Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $3,750,000 or 0.5% of net assets. |
| (k) | Step up bond that pays an initial coupon rate for a set period and increased coupon rates at one or more preset intervals. Rate shown is as of period end. |
| | |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
| BAN — | Bond anticipation note |
| CCD — | Community college district |
| COP — | Certificate of participation |
| GO — | General obligation |
| HFA — | Housing finance agency/authority |
| HSD — | High school district |
| IDA — | Industrial development agency/authority |
| ISD — | Independent school district |
| LT — | Limited tax |
| RB — | Revenue bond |
| SD — | School district |
| S/F — | Single-family |
| SIFMA — | Securities Industry and Financial Markets Association. The SIFMA Municipal Swap Index is a market index comprised of high-grade 7-day tax-exempt Variable Rate Demand Obligations with certain characteristics. |
| TOB — | Tender option bond |
| TRAN — | Tax and revenue anticipation note |
| ULT — | Unlimited tax |
| USD — | Unified school district |
| VRDN — | Variable rate demand note |
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2020 (see financial note 2(a) for additional information):
| Description | Quoted Prices in
Active Markets for
Identical Assets
(Level 1) | Other Significant
Observable Inputs
(Level 2) | Significant
Unobservable Inputs
(Level 3) | Total | |
| Assets | | | | | |
| Fixed-Rate Obligations1 | $— | $649,738,067 | $— | $649,738,067 | |
| Variable-Rate Obligations1 | — | 110,390,013 | — | 110,390,013 | |
| Total | $— | $760,128,080 | $— | $760,128,080 | |
| 1 | As categorized in Portfolio Holdings. |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Statement of Assets and Liabilities
As of August 31, 2020
| Assets |
| Investments in unaffiliated issuers, at value (cost $720,680,633) | | $760,128,080 |
| Cash | | 636,395 |
| Receivables: | | |
| Investments sold | | 3,059,057 |
| Interest | | 6,913,876 |
| Fund shares sold | | 2,814,906 |
| Prepaid expenses | + | 31,380 |
| Total assets | | 773,583,694 |
| Liabilities |
| Payables: | | |
| Investments bought - delayed-delivery | | 13,968,409 |
| Investment adviser and administrator fees | | 152,095 |
| Shareholder service fees | | 153,869 |
| Fund shares redeemed | | 781,776 |
| Distributions to shareholders | | 592,303 |
| Accrued expenses | + | 91,292 |
| Total liabilities | | 15,739,744 |
| Net Assets |
| Total assets | | 773,583,694 |
| Total liabilities | – | 15,739,744 |
| Net assets | | $757,843,950 |
| Net Assets by Source | | |
| Capital received from investors | | 716,494,200 |
| Total distributable earnings | | 41,349,750 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $757,843,950 | | 62,477,436 | | $12.13 |
| | | | | |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Statement of Operations
For the period September 1, 2019 through August 31, 2020
| Investment Income |
| Interest | | $19,651,537 |
| Expenses |
| Portfolio accounting fees | | 117,170 |
| Investment adviser and administrator fees | | 2,046,686 |
| Registration fees | | 50,766 |
| Professional fees | | 43,830 |
| Shareholder service fees | | 1,805,569 |
| Shareholder reports | | 28,512 |
| Independent trustees’ fees | | 18,042 |
| Transfer agent fees | | 11,147 |
| Custodian fees | | 6,517 |
| Other expenses | + | 10,943 |
| Total expenses | | 4,139,182 |
| Expense reduction by CSIM and its affiliates | – | 471,101 |
| Net expenses | – | 3,668,081 |
| Net investment income | | 15,983,456 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on investments | | 2,749,874 |
| Net realized losses on futures contracts | + | (715,641) |
| Net realized gains | | 2,034,233 |
| Net change in unrealized appreciation (depreciation) on investments | | (2,754,240) |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | (9,470) |
| Net change in unrealized appreciation (depreciation) | + | (2,763,710) |
| Net realized and unrealized losses | | (729,477) |
| Increase in net assets resulting from operations | | $15,253,979 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Fund
Statement of Changes in Net Assets
For the current and prior report periods
| Operations | |
| | 9/1/19-8/31/20 | 9/1/18-8/31/19 |
| Net investment income | | $15,983,456 | $16,671,060 |
| Net realized gains | | 2,034,233 | 4,635,397 |
| Net change in unrealized appreciation (depreciation) | + | (2,763,710) | 32,737,948 |
| Increase in net assets from operations | | 15,253,979 | 54,044,405 |
| Distributions to Shareholders | |
| Total distributions | | ($18,059,870) | ($16,665,627) |
| Transactions in Fund Shares | | | |
| | | 9/1/19-8/31/20 | 9/1/18-8/31/19 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 22,312,965 | $266,887,982 | 34,799,267 | $401,536,761 |
| Shares reinvested | | 839,847 | 10,070,852 | 784,635 | 9,172,872 |
| Shares redeemed | + | (22,653,985) | (267,662,212) | (30,035,862) | (346,755,331) |
| Net transactions in fund shares | | 498,827 | $9,296,622 | 5,548,040 | $63,954,302 |
| Shares Outstanding and Net Assets | | | |
| | | 9/1/19-8/31/20 | 9/1/18-8/31/19 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 61,978,609 | $751,353,219 | 56,430,569 | $650,020,139 |
| Total increase | + | 498,827 | 6,490,731 | 5,548,040 | 101,333,080 |
| End of period | | 62,477,436 | $757,843,950 | 61,978,609 | $751,353,219 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Financial Statements
Financial Highlights
| | 9/1/19–
8/31/20 | 9/1/18–
8/31/19 | 9/1/17–
8/31/18 | 9/1/16–
8/31/17 | 9/1/15–
8/31/16 | |
| Per-Share Data |
| Net asset value at beginning of period | $12.23 | $11.69 | $11.96 | $12.30 | $11.97 | |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.24 | 0.29 | 0.28 | 0.28 | 0.27 | |
| Net realized and unrealized gains (losses) | 0.07 | 0.54 | (0.27) | (0.25) | 0.40 | |
| Total from investment operations | 0.31 | 0.83 | 0.01 | 0.03 | 0.67 | |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.24) | (0.29) | (0.28) | (0.28) | (0.27) | |
| Distributions from net realized gains | (0.04) | — | — | (0.09) | (0.07) | |
| Total distributions | (0.28) | (0.29) | (0.28) | (0.37) | (0.34) | |
| Net asset value at end of period | $12.26 | $12.23 | $11.69 | $11.96 | $12.30 | |
| Total return | 2.54% | 7.19% | 0.14% | 0.36% | 5.64% | |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses | 0.49% | 0.49% | 0.49% | 0.49% | 0.49% | |
| Gross operating expenses | 0.58% | 0.60% | 0.60% | 0.59% | 0.60% | |
| Net investment income (loss) | 1.97% | 2.42% | 2.42% | 2.38% | 2.23% | |
| Portfolio turnover rate | 78% | 75% | 59% | 64% | 38% 2 | |
| Net assets, end of period (x 1,000,000) | $488 | $488 | $395 | $427 | $466 | |
| |
1
Calculated based on the average shares outstanding during the period.
2
Historically low yields led to large unrealized gains in existing positions. To limit taxable gains, Fund Management decreased sale activity and thereby decreased portfolio turnover.
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of each calendar quarter on the fund’s website at www.schwabfunds.com/schwabfunds_prospectus.
For fixed-rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued). For variable-rate obligations, the rate shown is the rate as of the report date based on each security’s rate reset date. The reference rate and spread used is shown parenthetically in the security description, if available; if not, the reference rate is described in a footnote. The maturity date shown for all the securities is the final legal maturity.
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Fixed-Rate Obligations 89.6% of net assets |
| CALIFORNIA 89.6% |
| ABAG Finance Auth |
| RB (Casa de las Campanas) Series 2010 | 5.13% | | 09/01/20 (a) | 775,000 | 775,000 |
| Alameda City USD | | | |
| GO Bonds Series C | 4.00% | | 08/01/28 (b) | 400,000 | 494,832 |
| GO Bonds Series C | 4.00% | | 08/01/30 (b) | 450,000 | 550,116 |
| GO Bonds Series C | 4.00% | | 08/01/31 (b) | 260,000 | 315,884 |
| GO Bonds Series C | 4.00% | | 08/01/32 (b) | 250,000 | 301,213 |
| GO Bonds Series C | 4.00% | | 08/01/33 (b) | 250,000 | 298,388 |
| Alameda Corridor Transportation Auth |
| Sr Lien Refunding RB Series 2013A | 5.00% | | 10/01/28 (b) | 2,060,000 | 2,298,569 |
| American Canyon Finance Auth | | | |
| Refunding RB Series 2015 | 5.00% | | 09/02/22 | 345,000 | 378,620 |
| Refunding RB Series 2015 | 5.00% | | 09/02/23 | 575,000 | 656,133 |
| Refunding RB Series 2015 | 5.00% | | 09/02/25 | 690,000 | 846,823 |
| Anaheim Housing & Public Improvement Auth |
| Water System RB Series 2016A | 5.00% | | 10/01/41 (b)(c) | 1,000,000 | 1,052,570 |
| Anaheim Public Financing Auth | | | |
| Lease RB Series 2014A | 5.00% | | 05/01/21 | 105,000 | 107,529 |
| Lease RB Series 2014A | 5.00% | | 05/01/22 | 375,000 | 397,440 |
| Lease RB Series 2014A | 5.00% | | 05/01/23 | 250,000 | 277,105 |
| Banning Financing Auth |
| Electric System Refunding RB Series 2015 | 5.00% | | 06/01/27 (b) | 650,000 | 777,608 |
| Beverly Hills USD | | | |
| GO Bonds Series 2009 | 0.00% | | 08/01/26 (d) | 555,000 | 530,547 |
| GO Bonds Series 2017 | 0.00% | | 08/01/34 (b)(d) | 7,945,000 | 5,356,360 |
| California | | | |
| GO Bonds | 5.00% | | 11/01/24 (b) | 750,000 | 755,955 |
| GO Bonds | 5.00% | | 09/01/25 (b) | 1,815,000 | 2,069,118 |
| GO Bonds | 5.00% | | 11/01/25 (b) | 80,000 | 80,625 |
| GO Bonds | 5.00% | | 03/01/34 (b) | 3,000,000 | 3,994,890 |
| GO Bonds | 5.00% | | 09/01/42 (b) | 1,500,000 | 1,628,265 |
| GO Bonds Series CQ | 4.00% | | 12/01/47 (b) | 4,060,000 | 4,424,426 |
| GO Refunding Bonds | 5.00% | | 08/01/27 | 2,730,000 | 3,547,935 |
| GO Refunding Bonds | 5.25% | | 10/01/32 (b) | 1,960,000 | 2,062,586 |
| GO Refunding Bonds Series 2016 | 5.00% | | 09/01/29 (b) | 1,290,000 | 1,621,762 |
| GO Refunding Bonds Series 2017 | 5.00% | | 08/01/32 (b) | 2,000,000 | 2,486,420 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| California County Tobacco Securitization Agency | | | |
| Tobacco Settlement (Los Angeles Cnty Securitization) RB Series 2020A | 4.00% | | 06/01/36 (b) | 1,510,000 | 1,798,561 |
| Tobacco Settlement (Los Angeles Cnty Securitization) RB Series 2020A | 4.00% | | 06/01/37 (b) | 310,000 | 367,905 |
| Tobacco Settlement (Los Angeles Cnty Securitization) RB Series 2020A | 4.00% | | 06/01/38 (b) | 340,000 | 402,254 |
| Tobacco Settlement (Los Angeles Cnty Securitization) Series 2020B-1 | 1.75% | | 06/01/30 | 250,000 | 254,050 |
| Tobacco Settlement (Los Angeles Cnty Securitization) Sr RB Series 2020A | 4.00% | | 06/01/49 (b) | 1,530,000 | 1,720,347 |
| California Dept of Water Resources |
| Water System RB Series BB | 5.00% | | 12/01/35 (b) | 1,000,000 | 1,368,680 |
| California Educational Facilities Auth | | | |
| RB (Art Center College of Design) Series 2018A | 5.00% | | 12/01/35 (b) | 1,250,000 | 1,449,100 |
| RB (Art Center College of Design) Series 2018A | 5.00% | | 12/01/44 (b) | 1,000,000 | 1,128,350 |
| California Health Facilities Financing Auth | | | |
| Insured RB (Northern CA Presbyterian Home & Services) Series 2015 | 5.00% | | 07/01/23 (a) | 175,000 | 196,691 |
| RB (Childrens Hospital of Orange Cnty) Series 2019A | 4.00% | | 11/01/29 | 500,000 | 626,460 |
| RB (Childrens Hospital of Orange Cnty) Series 2019A | 5.00% | | 11/01/30 (b) | 500,000 | 663,455 |
| RB (Childrens Hospital of Orange Cnty) Series 2019A | 5.00% | | 11/01/31 (b) | 965,000 | 1,272,401 |
| Refunding RB (Marshall Medical Center) Series 2015 | 5.00% | | 11/01/22 (a) | 275,000 | 302,181 |
| Refunding RB (Marshall Medical Center) Series 2015 | 5.00% | | 11/01/25 (a)(b) | 200,000 | 240,204 |
| Refunding RB (Marshall Medical Center) Series 2015 | 5.00% | | 11/01/28 (a)(b) | 800,000 | 955,520 |
| California Infrastructure & Economic Development Bank | | | |
| Lease RB (California State Retirement System) Series 2019 | 5.00% | | 08/01/49 (b) | 1,150,000 | 1,452,979 |
| RB (Academy of Motion Picture Arts & Sciences) Series 2015A | 5.00% | | 11/01/24 (b) | 1,635,000 | 1,861,840 |
| RB (Univ of Southern California) Series 2010 | 3.25% | | 12/01/21 (b)(c) | 750,000 | 755,820 |
| RB (Univ of Southern California) Series 2010 | 5.00% | | 12/01/23 (b)(c) | 670,000 | 678,127 |
| Refunding RB (Cal ISO Corp) Series 2013 | 5.00% | | 02/01/30 (b) | 4,130,000 | 4,540,274 |
| Refunding RB (Performing Arts Center of Los Angeles Cnty) Series 2020 | 4.00% | | 12/01/36 (b)(e) | 430,000 | 484,034 |
| Refunding RB (Performing Arts Center of Los Angeles Cnty) Series 2020 | 4.00% | | 12/01/37 (b)(e) | 475,000 | 532,722 |
| Refunding RB (Performing Arts Center of Los Angeles Cnty) Series 2020 | 5.00% | | 12/01/39 (b)(e) | 1,000,000 | 1,225,070 |
| Refunding RB (Performing Arts Center of Los Angeles Cnty) Series 2020 | 5.00% | | 12/01/41 (b)(e) | 995,000 | 1,211,024 |
| Refunding RB (Walt Disney Family Museum) Series 2016 | 5.00% | | 02/01/29 (b) | 250,000 | 292,105 |
| Refunding RB (Walt Disney Family Museum) Series 2016 | 5.00% | | 02/01/30 (b) | 330,000 | 384,463 |
| Refunding RB (Walt Disney Family Museum) Series 2016 | 5.00% | | 02/01/31 (b) | 350,000 | 406,392 |
| Refunding RBs (Academy of Motion Picture) Series 2020B | 5.00% | | 11/01/29 (b) | 1,500,000 | 2,007,135 |
| California Municipal Finance Auth | | | |
| Insured Refunding RB (Channing House) Series 2017A | 5.00% | | 05/15/26 (a) | 360,000 | 441,061 |
| Insured Refunding RB (Channing House) Series 2017A | 5.00% | | 05/15/27 (a) | 350,000 | 440,913 |
| Insured Refunding RB (Channing House) Series 2017A | 5.00% | | 05/15/34 (a)(b) | 1,040,000 | 1,246,471 |
| RB (Clinicas del Camino Real) Series 2020 | 4.00% | | 03/01/28 | 1,455,000 | 1,683,755 |
| RB (Clinicas del Camino Real) Series 2020 | 4.00% | | 03/01/29 | 1,515,000 | 1,766,657 |
| RB (Clinicas del Camino Real) Series 2020 | 4.00% | | 03/01/30 | 790,000 | 926,694 |
| RB (Inland Christian Home) Series 2020 | 4.00% | | 12/01/39 (a)(b) | 1,240,000 | 1,447,936 |
| RB (National Univ) Series 2019A | 5.00% | | 04/01/26 | 650,000 | 782,171 |
| RB (National Univ) Series 2019A | 5.00% | | 04/01/27 | 1,100,000 | 1,353,946 |
| RB (Univ of La Verne) Series 2017A | 5.00% | | 06/01/29 (b) | 1,000,000 | 1,221,860 |
| RB (Univ of the Pacific) Series 2016 | 5.00% | | 11/01/41 (b) | 600,000 | 602,718 |
| RB (Univ of the Pacific) Series 2016 | 5.00% | | 11/01/48 (b) | 1,000,000 | 1,004,270 |
| Refunding RB (Biola Univ) Series 2017 | 5.00% | | 10/01/25 | 305,000 | 351,317 |
| Refunding RB (Biola Univ) Series 2017 | 5.00% | | 10/01/27 | 860,000 | 1,020,184 |
| Refunding RB (Biola Univ) Series 2017 | 5.00% | | 10/01/28 (b) | 520,000 | 611,926 |
| Refunding RB (Eisenhower Medical Center) Series 2017B | 5.00% | | 07/01/27 | 600,000 | 732,072 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Refunding RB (Eisenhower Medical Center) Series 2017B | 5.00% | | 07/01/30 (b) | 1,350,000 | 1,617,745 |
| Refunding RB (HumanGood California) Series 2019A | 4.00% | | 10/01/29 (b) | 645,000 | 729,953 |
| Refunding RB (HumanGood California) Series 2019A | 4.00% | | 10/01/30 (b) | 750,000 | 845,542 |
| Refunding RB (HumanGood California) Series 2019A | 4.00% | | 10/01/31 (b) | 500,000 | 561,245 |
| Refunding RB (Institute of Aging) Series 2017 | 5.00% | | 08/15/29 (a)(b) | 250,000 | 314,448 |
| Refunding RB (Institute of Aging) Series 2017 | 5.00% | | 08/15/31 (a)(b) | 575,000 | 715,059 |
| Refunding RB (Institute of Aging) Series 2017 | 5.00% | | 08/15/32 (a)(b) | 250,000 | 309,103 |
| Refunding RB (Institute of Aging) Series 2017 | 5.00% | | 08/15/33 (a)(b) | 250,000 | 307,765 |
| California Public Finance Auth | | | |
| RB (Henry Mayo Newhall Hospital) Series 2017 | 5.00% | | 10/15/20 | 250,000 | 251,115 |
| RB (Henry Mayo Newhall Hospital) Series 2017 | 5.00% | | 10/15/21 | 410,000 | 427,072 |
| RB (Henry Mayo Newhall Hospital) Series 2017 | 5.00% | | 10/15/33 (b) | 425,000 | 481,406 |
| RB (Henry Mayo Newhall Hospital) Series 2017 | 5.00% | | 10/15/47 (b) | 1,000,000 | 1,100,980 |
| California Public Works Board | | | |
| Lease RB Series 2011C | 5.75% | | 10/01/31 (b) | 1,000,000 | 1,057,280 |
| Lease RB Series 2011D | 5.00% | | 12/01/22 (b) | 500,000 | 530,315 |
| Lease RB Series 2012A | 5.00% | | 04/01/23 (b) | 1,850,000 | 1,991,987 |
| Lease RB Series 2014B | 5.00% | | 10/01/24 | 1,000,000 | 1,190,880 |
| California School Finance Auth | | | |
| School Facility RB (Kipp LA) Series 2017A | 4.00% | | 07/01/21 | 280,000 | 287,305 |
| School Facility RB (Kipp LA) Series 2017A | 4.00% | | 07/01/22 | 300,000 | 315,441 |
| School Facility RB (Kipp LA) Series 2017A | 4.00% | | 07/01/23 | 200,000 | 215,486 |
| School Facility RB (Kipp LA) Series 2017A | 5.00% | | 07/01/24 | 165,000 | 187,942 |
| School Facility RB (Kipp LA) Series 2017A | 5.00% | | 07/01/37 (b) | 590,000 | 689,309 |
| California Statewide Communities Development Auth | | | |
| Hospital Refunding RB (Methodist Hospital of Southern California) Series 2018 | 5.00% | | 01/01/24 | 870,000 | 982,352 |
| Hospital Refunding RB (Methodist Hospital of Southern California) Series 2018 | 5.00% | | 01/01/31 (b) | 1,700,000 | 2,066,520 |
| Hospital Refunding RB (Methodist Hospital of Southern California) Series 2018 | 5.00% | | 01/01/33 (b) | 1,600,000 | 1,922,704 |
| Insured Health Facility Refunding RB (Los Angeles Jewish Home for the Aging) Series 2019A | 5.00% | | 11/15/34 (a)(b) | 750,000 | 949,725 |
| Insured Health Facility Refunding RB (Los Angeles Jewish Home for the Aging) Series 2019A | 5.00% | | 11/15/37 (a)(b) | 735,000 | 919,728 |
| RB (Adventist Health System West) Series 2018A | 5.00% | | 03/01/48 (b) | 2,765,000 | 3,311,170 |
| RB (Loma Linda Univ Medical Center) Series 2018A | 5.25% | | 12/01/43 (b) | 2,500,000 | 2,738,025 |
| RB (Redlands Community Hospital) Series 2016 | 5.00% | | 10/01/30 (b) | 800,000 | 961,512 |
| RB (Redlands Community Hospital) Series 2016 | 5.00% | | 10/01/32 (b) | 700,000 | 829,017 |
| RB (The Redwoods) Series 2013 | 4.00% | | 11/15/20 (a) | 125,000 | 125,980 |
| RB (Viamonte Sr Living 1) Series 2018A | 5.00% | | 07/01/29 (a)(b) | 300,000 | 385,380 |
| RB (Viamonte Sr Living 1) Series 2018A | 5.00% | | 07/01/30 (a)(b) | 235,000 | 299,115 |
| RB (Viamonte Sr Living 1) Series 2018A | 5.00% | | 07/01/32 (a)(b) | 900,000 | 1,128,456 |
| RB (Viamonte Sr Living 1) Series 2018A | 4.00% | | 07/01/35 (a)(b) | 275,000 | 316,456 |
| RB (Viamonte Sr Living 1) Series 2018A | 4.00% | | 07/01/36 (a)(b) | 425,000 | 487,165 |
| RBs (Emanate Health) Series 2020A | 4.00% | | 04/01/36 (b) | 2,025,000 | 2,372,591 |
| RBs (Emanate Health) Series 2020A | 4.00% | | 04/01/45 (b) | 1,750,000 | 1,994,510 |
| RBs (Emanate Health) Series 2020A | 3.00% | | 04/01/50 (b) | 1,500,000 | 1,534,395 |
| Refunding RB (CHF-Irvine) Series 2016 | 5.00% | | 05/15/30 (b) | 500,000 | 567,455 |
| Refunding RB (CHF-Irvine) Series 2016 | 5.00% | | 05/15/32 (b) | 1,250,000 | 1,408,000 |
| Refunding RB (Episcopal Communities & Services) Series 2012 | 5.00% | | 05/15/21 | 300,000 | 307,749 |
| Refunding RB (Episcopal Communities & Services) Series 2012 | 5.00% | | 05/15/24 (b) | 440,000 | 465,414 |
| Refunding RB (Huntington Memorial Hospital) Series 2014B | 5.00% | | 07/01/21 | 550,000 | 569,360 |
| Refunding RB (Huntington Memorial Hospital) Series 2014B | 5.00% | | 07/01/22 | 400,000 | 430,844 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Salinas Transportation Revenue COPs Series 2018B | 5.00% | | 12/01/33 (b) | 1,075,000 | 1,369,528 |
| Salinas Transportation Revenue COPs Series 2018B | 5.00% | | 12/01/36 (b) | 1,475,000 | 1,864,267 |
| Salinas Transportation Revenue COPs Series 2018B | 5.00% | | 12/01/41 (b) | 2,465,000 | 3,063,798 |
| Carpinteria Valley Water District | | | |
| Refunding RB Series 2020A | 5.00% | | 07/01/29 | 125,000 | 171,031 |
| Refunding RB Series 2020A | 5.00% | | 07/01/30 | 150,000 | 209,603 |
| Refunding RB Series 2020A | 5.00% | | 07/01/31 (b) | 145,000 | 200,947 |
| Refunding RB Series 2020A | 5.00% | | 07/01/32 (b) | 200,000 | 274,150 |
| Refunding RB Series 2020A | 5.00% | | 07/01/33 (b) | 200,000 | 270,702 |
| Refunding RB Series 2020A | 5.00% | | 07/01/34 (b) | 250,000 | 335,303 |
| Refunding RB Series 2020A | 5.00% | | 07/01/35 (b) | 350,000 | 466,578 |
| Centinela Valley UHSD |
| GO Bonds Series 2013B | 6.00% | | 08/01/36 (b)(c) | 1,300,000 | 1,514,396 |
| Ceres Successor Redevelopment Agency | | | |
| Sub Tax Allocation Refunding Bonds Series 2020 | 4.00% | | 12/15/34 (b) | 500,000 | 601,460 |
| Sub Tax Allocation Refunding Bonds Series 2020 | 4.00% | | 12/15/35 (b) | 500,000 | 598,700 |
| Chaffey Joint UHSD | | | |
| GO Bonds Series D | 0.00% | | 08/01/34 (b)(d) | 500,000 | 362,025 |
| GO Bonds Series D | 0.00% | | 08/01/35 (b)(d) | 600,000 | 417,594 |
| GO Bonds Series D | 0.00% | | 08/01/36 (b)(d) | 1,000,000 | 668,470 |
| Clovis | | | |
| Wastewater Refunding RB Series 2013 | 5.00% | | 08/01/22 | 165,000 | 179,888 |
| Wastewater Refunding RB Series 2015 | 5.25% | | 08/01/30 (b) | 1,060,000 | 1,296,221 |
| Compton USD | | | |
| GO Bonds Series 2019 B | 0.00% | | 06/01/36 (b)(d) | 1,500,000 | 991,095 |
| GO Refunding Bonds Series 2016F | 5.50% | | 06/01/28 (b) | 250,000 | 316,488 |
| GO Refunding Bonds Series 2016F | 5.50% | | 06/01/30 (b) | 500,000 | 630,085 |
| GO Refunding Bonds Series 2016F | 5.50% | | 06/01/31 (b) | 750,000 | 943,215 |
| Contra Costa CCD |
| GO Refunding Bonds Series 2011 | 5.00% | | 08/01/22 (b)(c) | 975,000 | 1,018,348 |
| Cordova Recreation & Park District |
| COP Series 2018 | 5.00% | | 03/01/43 (b) | 1,130,000 | 1,281,974 |
| Cotati-Rohnert Park USD |
| GO Refunding Bonds Series 2014B | 5.00% | | 08/01/23 | 735,000 | 837,194 |
| Desert CCD | | | |
| GO Bonds Series 2018 | 5.00% | | 08/01/37 (b)(c) | 415,000 | 473,237 |
| GO Bonds Series 2018 | 5.00% | | 08/01/38 (b)(c) | 500,000 | 570,165 |
| Diablo Water District | | | |
| Water Revenue COP Series 2019 | 4.00% | | 01/01/23 | 400,000 | 435,592 |
| Water Revenue COP Series 2019 | 4.00% | | 01/01/27 | 470,000 | 574,241 |
| Water Revenue COP Series 2019 | 4.00% | | 01/01/28 | 490,000 | 611,064 |
| Water Revenue COP Series 2019 | 4.00% | | 01/01/29 (b) | 505,000 | 624,190 |
| Water Revenue COP Series 2019 | 4.00% | | 01/01/30 (b) | 480,000 | 583,550 |
| Discovery Bay Public Financing Auth | | | |
| Water & Wastewater RB Series 2017 | 5.00% | | 12/01/25 | 225,000 | 281,936 |
| Water & Wastewater RB Series 2017 | 5.00% | | 12/01/26 | 240,000 | 309,487 |
| Water & Wastewater RB Series 2017 | 5.00% | | 12/01/27 | 250,000 | 330,243 |
| East Bay Municipal Utility District |
| Water System Refunding Bonds Series 2015A | 5.00% | | 06/01/35 (b) | 475,000 | 568,646 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| East Side UHSD | | | |
| Refunding GO Bonds Series 2020 | 5.00% | | 08/01/22 | 1,230,000 | 1,343,959 |
| Refunding GO Bonds Series 2020 | 5.00% | | 08/01/24 | 1,000,000 | 1,189,120 |
| Refunding GO Bonds Series 2020 | 5.00% | | 08/01/26 | 1,200,000 | 1,529,268 |
| Refunding GO Bonds Series 2020 | 5.00% | | 08/01/27 | 1,150,000 | 1,510,030 |
| El Camino Hospital District |
| GO Bonds Series 2006 | 0.00% | | 08/01/29 (d) | 1,250,000 | 1,119,537 |
| Elk Grove Finance Auth | | | |
| Special Tax RB Series 2015 | 5.00% | | 09/01/22 | 450,000 | 491,423 |
| Special Tax RB Series 2015 | 5.00% | | 09/01/23 | 775,000 | 884,755 |
| Foster City | | | |
| GO Bonds Series 2020 | 3.00% | | 08/01/33 (b) | 250,000 | 276,158 |
| GO Bonds Series 2020 | 3.00% | | 08/01/34 (b) | 390,000 | 427,596 |
| GO Bonds Series 2020 | 3.00% | | 08/01/35 (b) | 300,000 | 327,339 |
| Franklin-McKinley SD |
| GO Bonds Series C | 0.00% | | 08/01/40 (b)(c)(d) | 1,000,000 | 342,010 |
| Fresno Jt Power Finance Auth | | | |
| Lease Refunding RB Series 2017A | 5.00% | | 04/01/26 | 850,000 | 1,040,833 |
| Lease Refunding RB Series 2017A | 5.00% | | 04/01/28 (b) | 1,415,000 | 1,764,208 |
| Fresno USD | | | |
| GO Bonds Series 2016A | 0.00% | | 08/01/33 (b)(d) | 1,120,000 | 774,883 |
| GO Bonds Series 2016A | 0.00% | | 08/01/34 (b)(d) | 1,900,000 | 1,250,447 |
| Glendale Community College Dist | | | |
| GO Bonds Series B | 0.00% | | 08/01/36 (b)(d) | 2,500,000 | 1,680,075 |
| GO Bonds Series B | 0.00% | | 08/01/37 (b)(d) | 1,900,000 | 1,231,181 |
| GO Bonds Series B | 0.00% | | 08/01/38 (b)(d) | 2,020,000 | 1,262,379 |
| Glendale Successor Redevelopment Agency |
| Sub Tax Allocation Refunding Bonds Series 2013 | 5.00% | | 12/01/21 | 1,250,000 | 1,322,912 |
| Golden West Schools Financing Auth |
| GO RB (Rowland USD) Series 2005 | 5.25% | | 09/01/24 | 1,675,000 | 2,015,728 |
| Goleta Water District | | | |
| Refunding COP Series 2014A | 5.00% | | 12/01/22 | 375,000 | 415,785 |
| Refunding COP Series 2014A | 5.00% | | 12/01/24 (b) | 900,000 | 1,039,392 |
| Greenfield Redevelopment Agency | | | |
| Tax Allocation Refunding Bonds Series 2016 | 4.00% | | 02/01/25 | 790,000 | 902,844 |
| Tax Allocation Refunding Bonds Series 2016 | 5.00% | | 02/01/29 (b) | 730,000 | 874,591 |
| Hastings Campus Housing Financing Auth |
| Campus Housing RB Series 2020A | 5.00% | | 07/01/45 (b)(e) | 2,800,000 | 2,903,096 |
| Hastings College of the Law | | | |
| Refunding Bonds Series 2017 | 5.00% | | 04/01/25 | 400,000 | 477,596 |
| Refunding Bonds Series 2017 | 5.00% | | 04/01/27 | 175,000 | 220,682 |
| Refunding Bonds Series 2017 | 5.00% | | 04/01/28 (b) | 180,000 | 225,722 |
| Refunding Bonds Series 2017 | 5.00% | | 04/01/32 (b) | 1,100,000 | 1,348,006 |
| Refunding Bonds Series 2017 | 5.00% | | 04/01/34 (b) | 1,215,000 | 1,477,671 |
| Healdsburg |
| Wastewater Refunding RB Series 2015A | 4.00% | | 10/01/22 | 1,095,000 | 1,182,666 |
| Healdsburg Redevelopment Agency |
| Tax Allocation Refunding Bonds (Sotoyome) Series 2017 | 4.00% | | 08/01/22 | 695,000 | 740,036 |
| Imperial USD |
| GO Bonds Series A | 5.25% | | 08/01/43 (b) | 2,430,000 | 2,960,736 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Independent Cities Finance Auth | | | |
| Mobile Home Park Refunding RB (Union City Tropics) Series 2019 | 4.25% | | 05/15/25 | 780,000 | 889,996 |
| Mobile Home Park Refunding RB (Union City Tropics) Series 2019 | 4.25% | | 05/15/26 | 810,000 | 938,701 |
| Mobile Home Park Refunding RB (Union City Tropics) Series 2019 | 5.00% | | 05/15/48 (b) | 2,000,000 | 2,372,140 |
| Indian Wells Successor Redevelopment Agency | | | |
| Consolidated Whitewater Redevelopment Sub Tax Allocation Refunding Bonds Series 2015A | 5.00% | | 09/01/23 | 1,075,000 | 1,221,006 |
| Consolidated Whitewater Redevelopment Sub Tax Allocation Refunding Bonds Series 2015A | 5.00% | | 09/01/27 (b) | 1,250,000 | 1,509,325 |
| Inglewood Successor Redevelopment Agency | | | |
| Sub Lien Tax Allocation RB Series 2017A | 5.00% | | 05/01/26 | 500,000 | 621,365 |
| Sub Lien Tax Allocation RB Series 2017A | 5.00% | | 05/01/27 | 500,000 | 636,675 |
| Inglewood USD | | | |
| GO Bonds Series A | 6.25% | | 08/01/37 (b) | 685,000 | 787,565 |
| GO Bonds Series B | 5.00% | | 08/01/30 (b) | 100,000 | 125,438 |
| GO Bonds Series B | 5.00% | | 08/01/31 (b) | 200,000 | 249,558 |
| GO Bonds Series B | 5.00% | | 08/01/32 (b) | 200,000 | 247,858 |
| GO Bonds Series B | 5.00% | | 08/01/33 (b) | 225,000 | 276,505 |
| GO Bonds Series B | 5.00% | | 08/01/35 (b) | 200,000 | 243,472 |
| GO Bonds Series B | 5.00% | | 08/01/37 (b) | 770,000 | 932,470 |
| Kern Cnty |
| Refunding COP Series 2016A | 5.00% | | 11/01/23 | 3,020,000 | 3,469,829 |
| Kern Cnty Water Agency Improvement District #4 |
| Refunding RB Series 2016A | 5.00% | | 05/01/30 (b) | 1,500,000 | 1,858,440 |
| Kern High School District |
| GO Bonds Series 2016A | 3.00% | | 08/01/29 (b) | 1,000,000 | 1,123,290 |
| Lake Tahoe USD | | | |
| GO Refunding Bonds Series 2019 | 4.00% | | 08/01/26 | 550,000 | 656,255 |
| GO Refunding Bonds Series 2019 | 4.00% | | 08/01/28 | 630,000 | 781,231 |
| GO Refunding Bonds Series 2019 | 4.00% | | 08/01/29 | 605,000 | 762,917 |
| Lancaster Redevelopment Agency | | | |
| Tax Allocation Refunding Bonds Series 2017 | 4.00% | | 08/01/26 | 1,360,000 | 1,619,257 |
| Tax Allocation Refunding Bonds Series 2017 | 5.00% | | 08/01/29 (b) | 820,000 | 997,874 |
| Livermore Valley Joint USD | | | |
| GO Bonds Series 2019 | 4.00% | | 08/01/30 (b) | 430,000 | 512,113 |
| GO Bonds Series 2019 | 4.00% | | 08/01/31 (b) | 325,000 | 384,989 |
| GO Bonds Series 2019 | 4.00% | | 08/01/32 (b) | 335,000 | 393,970 |
| GO Bonds Series 2019 | 4.00% | | 08/01/33 (b) | 370,000 | 431,583 |
| GO Bonds Series 2019 | 4.00% | | 08/01/34 (b) | 600,000 | 695,796 |
| Long Beach CCD |
| GO Refunding Bonds Series 2015F | 5.00% | | 06/01/25 | 925,000 | 1,135,992 |
| Long Beach Harbor Dept | | | |
| Refunding RB Series 2020B | 5.00% | | 05/15/23 | 1,430,000 | 1,596,595 |
| Refunding RB Series 2020B | 5.00% | | 05/15/24 (f) | 6,260,000 | 7,243,258 |
| Los Angeles |
| Wastewater System Sub Refunding RB Series 2012B | 4.00% | | 06/01/22 | 440,000 | 469,546 |
| Los Angeles Cnty |
| TRAN Series 2020-2021A | 4.00% | | 06/30/21 | 3,500,000 | 3,611,195 |
| Los Angeles Cnty Public Works Financing Auth |
| Lease RB Series 2019 E1 | 5.00% | | 12/01/30 (b) | 600,000 | 805,488 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Los Angeles Cnty Redevelopment Refunding Auth |
| Tax Allocation Refunding RB (South Gate) Series 2014A | 5.00% | | 09/01/24 | 1,390,000 | 1,630,331 |
| Los Angeles Cnty Sanitation Districts Financing Auth |
| Sub RB (District #14) Series 2015A | 5.00% | | 10/01/31 (b) | 3,880,000 | 4,743,028 |
| Los Angeles Community Facilities District #4 | | | |
| Special Tax Refunding Bonds Series 2014 | 5.00% | | 09/01/22 | 735,000 | 806,221 |
| Special Tax Refunding Bonds Series 2014 | 5.00% | | 09/01/23 | 980,000 | 1,120,689 |
| Los Angeles Dept of Airports | | | |
| Sr Ref RB Series 2018B | 5.00% | | 05/15/33 (b) | 3,325,000 | 4,089,284 |
| Sr Refunding RB Series 2018B | 5.00% | | 05/15/32 (b) | 1,675,000 | 2,070,635 |
| Sub RB Series 2018D | 5.00% | | 05/15/31 (b) | 1,510,000 | 1,918,244 |
| Sub RB Series 2019F | 5.00% | | 05/15/28 | 1,310,000 | 1,665,861 |
| Los Angeles Dept of Water & Power | | | |
| Power System RB Series 2015A | 5.00% | | 07/01/30 (b)(f) | 3,015,000 | 3,593,970 |
| Power System RB Series 2020B | 5.00% | | 07/01/40 (b)(f) | 5,000,000 | 6,579,450 |
| Los Angeles Harbor Dept | | | |
| RB Series 2014C | 5.00% | | 08/01/31 (b) | 1,450,000 | 1,680,651 |
| Refunding RB Series 2011B | 5.00% | | 08/01/24 (b) | 1,000,000 | 1,041,900 |
| Refunding RB Series 2015A | 5.00% | | 08/01/26 (b) | 850,000 | 1,021,530 |
| Los Angeles Municipal Improvement Corp |
| Lease RB Series 2014A | 5.00% | | 05/01/31 (b) | 1,050,000 | 1,217,412 |
| Los Gatos |
| COP Series 2010 | 5.00% | | 08/01/21 (b) | 500,000 | 501,280 |
| Los Osos Community Facilities Wastewater Assessment District #1 | | | |
| Limited Obligation Refunding Bonds Series 2019 | 5.00% | | 09/02/24 | 675,000 | 796,176 |
| Limited Obligation Refunding Bonds Series 2019 | 5.00% | | 09/02/26 | 740,000 | 922,965 |
| Madera Irrigation District |
| Water Refunding RB Series 2015 | 5.00% | | 09/01/28 (b) | 2,205,000 | 2,708,424 |
| Mono Cnty |
| COP Series 2018A | 5.00% | | 10/01/48 (b) | 2,490,000 | 2,994,972 |
| Monte Vista Wtr Dist | | | |
| Revenue COP Series 2020A | 5.00% | | 10/01/44 (b) | 2,495,000 | 3,177,358 |
| Revenue COP Series 2020A | 4.00% | | 10/01/49 (b) | 2,535,000 | 2,951,399 |
| Moreno Valley Public Financing Auth |
| Lease Refunding RB Series 2013 | 5.00% | | 11/01/22 | 810,000 | 894,888 |
| Mountain View Shoreline Regional Park Community | | | |
| RB Series 2011A | 5.00% | | 08/01/21 | 550,000 | 573,782 |
| RB Series 2011A | 5.75% | | 08/01/40 (b) | 700,000 | 721,763 |
| Nothern California Energy Auth |
| Commodity Suppply RB Series 2018 | 5.00% | | 07/01/24 (a) | 3,000,000 | 3,495,480 |
| Novato | | | |
| Special Tax Refunding Bonds Series 2020 | 4.00% | | 09/01/22 | 100,000 | 107,404 |
| Special Tax Refunding Bonds Series 2020 | 4.00% | | 09/01/24 | 100,000 | 113,858 |
| Special Tax Refunding Bonds Series 2020 | 4.00% | | 09/01/25 | 150,000 | 174,966 |
| Special Tax Refunding Bonds Series 2020 | 4.00% | | 09/01/26 | 150,000 | 178,109 |
| Special Tax Refunding Bonds Series 2020 | 4.00% | | 09/01/27 | 250,000 | 301,858 |
| Special Tax Refunding Bonds Series 2020 | 4.00% | | 09/01/28 (b) | 200,000 | 244,546 |
| Special Tax Refunding Bonds Series 2020 | 4.00% | | 09/01/29 (b) | 250,000 | 303,985 |
| Special Tax Refunding Bonds Series 2020 | 4.00% | | 09/01/30 (b) | 140,000 | 169,193 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Special Tax Refunding Bonds Series 2020 | 4.00% | | 09/01/31 (b) | 285,000 | 341,664 |
| Special Tax Refunding Bonds Series 2020 | 4.00% | | 09/01/32 (b) | 150,000 | 178,746 |
| Novato Successor Redevelopment Agency |
| Tax Allocation Bonds (Hamilton Field) Series 2011 | 6.75% | | 09/01/40 (b)(c) | 1,000,000 | 1,064,910 |
| Oak Grove SD | | | |
| GO Bonds Series F-2 | 0.00% | | 08/01/44 (b)(d) | 2,000,000 | 973,520 |
| GO Bonds Series F-2 | 0.00% | | 06/01/45 (b)(d) | 1,500,000 | 709,125 |
| Oakland |
| GO Refunding Bonds Series 2015A | 5.00% | | 01/15/31 (b) | 620,000 | 755,284 |
| Oakland Redevelopment Successor Agency |
| Sub Tax Allocation Refunding Bonds (Central District) Series 2013 | 5.00% | | 09/01/20 | 1,900,000 | 1,900,000 |
| Oakland USD | | | |
| GO Bonds Series 2015A | 5.00% | | 08/01/22 | 500,000 | 540,800 |
| GO Bonds Series 2015A | 5.00% | | 08/01/23 | 700,000 | 789,019 |
| GO Bonds Series 2015A | 5.00% | | 08/01/24 | 600,000 | 700,908 |
| GO Bonds Series 2019A | 5.00% | | 08/01/29 (b) | 1,500,000 | 1,897,515 |
| GO Bonds Series 2019A | 5.00% | | 08/01/31 (b) | 500,000 | 626,135 |
| GO Refunding Bonds Series 2017C | 5.00% | | 08/01/34 (b) | 2,000,000 | 2,458,740 |
| Oakley Successor Redevelopment Agency | | | |
| Tax Allocation Refunding Bonds Series 2018 | 5.00% | | 09/01/29 (b) | 250,000 | 323,400 |
| Tax Allocation Refunding Bonds Series 2018 | 5.00% | | 09/01/30 (b) | 500,000 | 642,910 |
| Tax Allocation Refunding Bonds Series 2018 | 5.00% | | 09/01/31 (b) | 660,000 | 841,177 |
| Tax Allocation Refunding Bonds Series 2018 | 5.00% | | 09/01/32 (b) | 350,000 | 443,153 |
| Tax Allocation Refunding Bonds Series 2018 | 5.00% | | 09/01/33 (b) | 725,000 | 910,448 |
| Tax Allocation Refunding Bonds Series 2018 | 5.00% | | 09/01/34 (b) | 525,000 | 657,662 |
| Oceanside Successor Redevelopment Agency | | | |
| Tax Allocation Refunding Bonds Series 2015A | 5.00% | | 09/01/24 | 600,000 | 707,646 |
| Tax Allocation Refunding Bonds Series 2015A | 5.00% | | 09/01/25 | 225,000 | 274,374 |
| Oroville |
| RB (Oroville Hospital) Series 2019 | 5.25% | | 04/01/49 (b) | 2,000,000 | 2,164,580 |
| Oxnard | | | |
| Lease Refunding RB Series 2018 | 5.00% | | 06/01/33 (b) | 1,250,000 | 1,582,975 |
| Lease Refunding RB Series 2018 | 5.00% | | 06/01/34 (b) | 1,235,000 | 1,558,298 |
| Lease Refunding RB Series 2018 | 5.00% | | 06/01/35 (b) | 770,000 | 968,167 |
| Oxnard Financing Auth | | | |
| Wastewater Refunding RB Series 2014 | 5.00% | | 06/01/23 | 500,000 | 564,600 |
| Wastewater Refunding RB Series 2014 | 5.00% | | 06/01/24 | 1,750,000 | 2,054,325 |
| Oxnard SD | | | |
| GO Bonds Series D | 5.00% | | 08/01/31 (b)(c) | 1,365,000 | 1,677,708 |
| GO Bonds Series D | 5.00% | | 08/01/32 (b)(c) | 1,490,000 | 1,831,344 |
| GO Bonds Series D | 5.00% | | 08/01/33 (b)(c) | 1,685,000 | 2,071,017 |
| Pacifica |
| Wastewater RB Series 2017 | 5.00% | | 10/01/32 (b) | 1,030,000 | 1,307,121 |
| Palmdale SD |
| GO Bonds Series 2017B | 5.25% | | 08/01/42 (b) | 2,500,000 | 3,106,725 |
| Palo Alto |
| COP Series 2019A | 5.00% | | 11/01/44 (b) | 3,000,000 | 3,719,700 |
| Palomar CCD |
| GO Bonds Series 2006D | 5.00% | | 08/01/29 (b) | 450,000 | 583,884 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Paramount USD |
| GO Bonds Series 2019B | 0.00% | | 08/01/35 (b)(d) | 1,425,000 | 970,624 |
| Pasadena |
| Refunding COP Series 2015A | 5.00% | | 02/01/26 (b) | 600,000 | 724,230 |
| Pico Rivera Public Financing Auth | | | |
| Lease Refunding RB Series 2016 | 5.50% | | 09/01/29 (b) | 350,000 | 451,014 |
| Lease Refunding RB Series 2016 | 5.25% | | 09/01/33 (b) | 800,000 | 1,001,440 |
| Pleasant Hill Recreation & Park District |
| Refunding GO Bonds Series 2017 | 5.00% | | 08/01/30 (b) | 770,000 | 976,537 |
| Pleasant Valley SD |
| GO Refunding Bonds Series 2002A | 5.85% | | 08/01/31 | 2,000,000 | 2,628,920 |
| Pomona |
| S/F Mortgage Refunding RB Series 1990B | 7.50% | | 08/01/23 (c) | 320,000 | 356,240 |
| Port of Oakland |
| Refunding RB Series 2017D | 5.00% | | 11/01/27 (f) | 4,895,000 | 6,176,462 |
| Reedley |
| Water Refunding RB Series 2017 | 5.00% | | 09/01/25 | 540,000 | 666,608 |
| Richmond Jt Powers Financing Auth | | | |
| Refunding RB Series 2019B | 4.00% | | 05/01/22 | 1,250,000 | 1,320,887 |
| Refunding RB Series 2019B | 5.00% | | 05/01/23 | 1,000,000 | 1,118,270 |
| Refunding RB Series 2019B | 5.00% | | 05/01/24 | 650,000 | 754,149 |
| Rio Elementary SD | | | |
| GO Bonds Series 2018C | 0.00% | | 08/01/31 (b)(d) | 100,000 | 76,520 |
| GO Bonds Series 2018C | 0.00% | | 08/01/32 (b)(d) | 115,000 | 83,796 |
| GO Bonds Series 2018C | 0.00% | | 08/01/38 (b)(d) | 920,000 | 507,214 |
| GO Bonds Series 2018C | 0.00% | | 08/01/43 (b)(d) | 1,000,000 | 435,560 |
| GO Bonds Series 2018C | 5.00% | | 08/01/47 (b) | 1,000,000 | 1,239,300 |
| GO Bonds Seris 2018C | 0.00% | | 08/01/35 (b)(d) | 400,000 | 253,968 |
| Riverside Cnty |
| TRAN Series 2020 | 4.00% | | 06/30/21 | 5,000,000 | 5,159,300 |
| Riverside Cnty Transportation Commission |
| Sales Tax RB Series 2013A | 5.25% | | 06/01/24 (b)(c) | 710,000 | 808,811 |
| Riverside County Public Finance Auth |
| Lease Refunding RB Series 2015A | 5.00% | | 11/01/25 | 1,200,000 | 1,463,628 |
| Ross Valley Public Financing Auth | | | |
| RB (Marin Cnty Sanitary District #1) Series 2013 | 5.00% | | 10/01/27 (b) | 200,000 | 228,826 |
| RB (Marin Cnty Sanitary District #1) Series 2013 | 5.00% | | 10/01/43 (b) | 1,000,000 | 1,134,210 |
| Ross Valley SD |
| GO Bonds Series A | 5.00% | | 08/01/31 (b)(c) | 1,000,000 | 1,041,820 |
| Sacramento Cnty | | | |
| Airport System Sr Refunding RB Series 2018C | 5.00% | | 07/01/39 (b) | 1,000,000 | 1,197,130 |
| Airport System SR Refunding RB Series 2020 | 5.00% | | 07/01/34 (b) | 1,650,000 | 2,164,981 |
| San Diego Assoc of Governments | | | |
| Capital Grant Receipts RB (Mid Coast Corridor Transit) Series 2019A | 5.00% | | 11/15/25 (b) | 2,500,000 | 2,932,975 |
| Capital Grant Receipts RB (Mid Coast Corridor Transit) Series 2019B | 1.80% | | 11/15/27 (b) | 2,500,000 | 2,565,450 |
| San Diego Cnty | | | |
| RB (Sanford Burnham Institute) Series 2015A | 4.00% | | 11/01/23 | 745,000 | 831,509 |
| RB (Sanford Burnham Institute) Series 2015A | 5.00% | | 11/01/24 | 550,000 | 654,929 |
| RB (Sanford Burnham Institute) Series 2015A | 5.00% | | 11/01/25 | 350,000 | 430,493 |
| RB (Sanford Burnham Institute) Series 2015A | 5.00% | | 11/01/26 (b) | 1,000,000 | 1,226,540 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| San Diego Cnty Regional Airport Auth | | | |
| RB Series 2017B | 5.00% | | 07/01/31 (b) | 1,360,000 | 1,650,034 |
| Sub Refunding & RB Series 2019A | 4.00% | | 07/01/37 (b) | 1,000,000 | 1,161,090 |
| San Diego Public Facilities Financing Auth |
| Lease Refunding RB Series 2010A | 5.00% | | 09/01/20 (c) | 745,000 | 745,000 |
| San Diego Unified Port District | | | |
| Refunding RB Series 2013A | 5.00% | | 09/01/22 | 300,000 | 327,111 |
| Refunding RB Series 2013A | 5.00% | | 09/01/23 | 550,000 | 623,997 |
| Refunding RB Series 2013A | 5.00% | | 09/01/25 (b) | 245,000 | 276,715 |
| San Diego USD |
| GO Bonds Series 2017K2 | 0.00% | | 07/01/33 (b)(d) | 1,090,000 | 779,503 |
| San Francisco Airport Commission | | | |
| RB 2nd Series 2019E | 5.00% | | 05/01/40 (b) | 2,875,000 | 3,526,849 |
| RB 2nd Series 2019H | 5.00% | | 05/01/21 | 2,000,000 | 2,052,240 |
| Refunding RB Series 2011B | 5.50% | | 05/01/21 | 450,000 | 465,228 |
| Refunding RB Series 2012A | 5.00% | | 05/01/26 (b) | 290,000 | 310,900 |
| San Francisco Bay Area Rapid Transit District |
| GO Bonds Series 2019 F1 | 5.00% | | 08/01/28 | 1,995,000 | 2,693,270 |
| San Francisco Public Utilities Commission |
| Water RB Series 2017A | 5.00% | | 11/01/36 (b) | 2,000,000 | 2,340,840 |
| San Francisco Successor Redevelopment Agency | | | |
| Subordinate Tax Allocation Refunding Bonds Series 2014C | 5.00% | | 08/01/23 | 265,000 | 300,269 |
| Subordinate Tax Allocation Refunding Bonds Series 2014C | 5.00% | | 08/01/25 (b) | 150,000 | 176,088 |
| Subordinate Tax Allocation Refunding Bonds Series 2014C | 5.00% | | 08/01/26 (b) | 165,000 | 192,807 |
| Subordinate Tax Allocation Refunding Bonds Series 2014C | 5.00% | | 08/01/28 (b) | 305,000 | 353,925 |
| Subordinate Tax Allocation Refunding Bonds Series 2014C | 5.00% | | 08/01/29 (b) | 430,000 | 497,463 |
| San Jacinto USD | | | |
| GO Bonds Series 2017 | 5.00% | | 08/01/34 (b) | 1,205,000 | 1,487,621 |
| GO Bonds Series 2017 | 5.00% | | 08/01/36 (b) | 925,000 | 1,133,513 |
| San Joaquin Cnty | | | |
| Solid Waste System Refunding Revenue COP 2014 | 5.00% | | 04/01/21 | 350,000 | 359,307 |
| Solid Waste System Refunding Revenue COP 2014 | 5.00% | | 04/01/22 | 350,000 | 375,225 |
| San Lorenzo Valley USD |
| GO Bonds Series 2004 | 0.00% | | 08/01/28 (d) | 990,000 | 893,772 |
| San Luis Obispo Cnty CCD |
| GO Refunding Bonds Series A | 5.00% | | 08/01/27 (b) | 60,000 | 73,462 |
| San Mateo Cnty CCD | | | |
| GO Refunding Bonds Series 2018 | 5.00% | | 09/01/38 (b) | 1,000,000 | 1,321,280 |
| Go Refunding Bonds Series 2018 | 5.00% | | 09/01/39 (b) | 1,045,000 | 1,376,746 |
| GO Refunding Bonds Series 2018 | 5.00% | | 09/01/40 (b) | 1,150,000 | 1,510,985 |
| San Mateo Foster City PFA |
| Wastewater RB Series 2019 | 5.00% | | 08/01/29 | 1,310,000 | 1,795,892 |
| San Mateo Foster City Public Finance Auth | | | |
| RB Series 2020A | 5.00% | | 05/01/33 (b) | 190,000 | 244,659 |
| RB Series 2020A | 5.00% | | 05/01/34 (b) | 225,000 | 288,817 |
| RB Series 2020A | 5.00% | | 05/01/36 (b) | 500,000 | 636,410 |
| RB Series 2020A | 5.00% | | 05/01/37 (b) | 250,000 | 317,195 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Sanger Public Financing Auth | | | |
| Lease RB Series 2020A | 4.00% | | 02/01/40 (b)(e) | 1,250,000 | 1,442,362 |
| Lease RB Series 2020A | 4.00% | | 02/01/45 (b)(e) | 1,510,000 | 1,722,185 |
| Lease RB Series 2020A | 4.00% | | 02/01/51 (b)(e) | 2,255,000 | 2,560,462 |
| Sanger USD |
| GO Bonds Series B | 3.00% | | 08/01/45 (b) | 1,750,000 | 1,855,717 |
| Santa Cruz Cnty Capital Financing Auth | | | |
| Lease RB Series 2014 | 3.00% | | 08/01/24 | 175,000 | 191,352 |
| Lease RB Series 2014 | 5.00% | | 08/01/25 (b) | 175,000 | 207,492 |
| Lease RB Series 2014 | 5.00% | | 08/01/26 (b) | 165,000 | 195,423 |
| Lease RB Series 2014 | 5.00% | | 08/01/27 (b) | 320,000 | 378,589 |
| Santa Monica Public Financing Auth | | | |
| Lease RB Series 2011A | 5.00% | | 06/01/30 (b) | 820,000 | 847,290 |
| Lease RB Series 2018 | 5.00% | | 07/01/35 (b) | 575,000 | 712,460 |
| Lease RB Series 2018 | 5.00% | | 07/01/38 (b) | 175,000 | 214,722 |
| Santa Rosa HSD | | | |
| GO Bonds Series 2018C | 5.00% | | 08/01/34 (b) | 250,000 | 309,173 |
| GO Bonds Series 2018C | 5.00% | | 08/01/35 (b) | 300,000 | 369,837 |
| GO Bonds Series 2018C | 5.00% | | 08/01/36 (b) | 850,000 | 1,045,126 |
| Shasta UHSD |
| GO Bonds Series 2018 | 5.25% | | 08/01/43 (b) | 1,000,000 | 1,238,160 |
| Sierra View Healthcare District | | | |
| RB Series 2019 | 5.00% | | 07/01/24 | 915,000 | 1,048,132 |
| RB Series 2019 | 4.00% | | 07/01/25 | 1,270,000 | 1,432,585 |
| Refunding RB Series 2020 | 4.00% | | 07/01/26 (e) | 300,000 | 342,102 |
| Refunding RB Series 2020 | 5.00% | | 07/01/27 (e) | 630,000 | 764,707 |
| Refunding RB Series 2020 | 5.00% | | 07/01/30 (e) | 645,000 | 808,359 |
| South Bay USD |
| GO BAN Series 2019 | 0.00% | | 08/01/22 (d) | 2,000,000 | 1,980,600 |
| South Placer Wasterwater Auth |
| Wastewater Refunding RB Series 2020 | 5.00% | | 11/01/34 | 1,000,000 | 1,439,040 |
| Southern California Metropolitan Water District | | | |
| Water Refunding RB Series 1993A | 5.75% | | 07/01/21 | 425,000 | 444,856 |
| Water Refunding RB Series 2016A | 5.00% | | 07/01/34 (b) | 390,000 | 476,752 |
| Southern California Public Power Auth |
| Refunding RB Series 2020-1 | 5.00% | | 07/01/30 (b) | 3,000,000 | 3,449,190 |
| Susanville | | | |
| Natural Gas Refunding RB Series 2019 | 2.00% | | 06/01/22 | 455,000 | 464,933 |
| Natural Gas Refunding RB Series 2019 | 3.00% | | 06/01/25 | 575,000 | 630,614 |
| Natural Gas Refunding RB Series 2019 | 4.00% | | 06/01/28 (b) | 615,000 | 736,340 |
| Natural Gas Refunding RB Series 2019 | 4.00% | | 06/01/30 (b) | 680,000 | 806,623 |
| Natural Gas Refunding RB Series 2019 | 4.00% | | 06/01/33 (b) | 765,000 | 893,849 |
| Truckee Donner Public Utility District | | | |
| Water System Refunding RB Series 2015 | 4.00% | | 11/15/22 | 630,000 | 683,336 |
| Water System Refunding RB Series 2015 | 4.00% | | 11/15/23 | 655,000 | 735,310 |
| Water System Refunding RB Series 2015 | 4.00% | | 11/15/24 | 680,000 | 788,684 |
| Water System Refunding RB Series 2015 | 4.00% | | 11/15/25 | 710,000 | 846,710 |
| Tustin USD |
| GO Bonds Series B | 6.00% | | 08/01/36 (b)(c) | 950,000 | 1,000,730 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Univ of California |
| Limited Project RB Series 2012G | 5.00% | | 05/15/42 (b) | 3,000,000 | 3,215,370 |
| Upland | | | |
| COP (San Antonio Community Hospital) Series 2011 | 5.75% | | 01/01/21 | 1,740,000 | 1,767,701 |
| COP (San Antonio Regional Hospital) Series 2017 | 5.00% | | 01/01/24 | 1,200,000 | 1,354,968 |
| West Contra Costa USD | | | |
| GO Bonds Series 2020E | 4.00% | | 08/01/49 (b) | 2,000,000 | 2,332,800 |
| GO Bonds Series 2020F | 4.00% | | 08/01/49 (b) | 1,000,000 | 1,166,400 |
| West Hills CCD | | | |
| GO Refunding Bonds Series 2016B | 5.00% | | 08/01/25 | 320,000 | 386,413 |
| GO Refunding Bonds Series 2016B | 5.00% | | 08/01/26 | 450,000 | 557,096 |
| GO Refunding Bonds Series 2016B | 5.00% | | 08/01/30 (b) | 595,000 | 726,995 |
| GO Refunding Bonds Series 2016B | 5.00% | | 08/01/31 (b) | 635,000 | 772,217 |
| Total Fixed-Rate Obligations |
| (Cost $413,305,134) | | | | | 437,553,090 |
|
| Variable-Rate Obligations 12.0% of net assets |
| CALIFORNIA 12.0% |
| Bay Area Toll Auth | | | |
| Toll Bridge RB Series 2006C1 | | | | | |
| (SIFMA Municipal Swap Index + 0.90%) | 0.99% | | 04/01/45 (b) | 5,000,000 | 5,014,800 |
| Toll Bridge RB Series 2014E | 2.00% | | 04/01/34 (b)(g) | 500,000 | 500,725 |
| Toll Bridge RB Series 2017H | 2.13% | | 04/01/53 (b)(g) | 3,000,000 | 3,165,330 |
| Toll Bridge RB Series 2018A | 2.63% | | 04/01/45 (b)(g) | 3,000,000 | 3,291,840 |
| California | | | |
| GO Bonds Series 2004A1 | 0.01% | | 05/01/34 (a)(b)(h) | 6,140,000 | 6,140,000 |
| GO Bonds Series 2004A2 | 0.01% | | 05/01/34 (a)(b)(h) | 1,815,000 | 1,815,000 |
| GO Bonds Series 2004A3 | 0.01% | | 05/01/34 (a)(b)(h) | 740,000 | 740,000 |
| GO Bonds Series 2004A5 | 0.01% | | 05/01/34 (a)(b)(h) | 500,000 | 500,000 |
| GO Bonds Series 2004B3 | 0.01% | | 05/01/34 (a)(b)(h) | 3,490,000 | 3,490,000 |
| GO Bonds Series 2004B5 | 0.01% | | 05/01/34 (a)(b)(h) | 4,920,000 | 4,920,000 |
| California Health Facilities Financing Auth | | | |
| RB (Adventist Health System) Series 2011A | 3.00% | | 03/01/41 (b)(g) | 3,275,000 | 3,440,715 |
| RB (Providence St Joseph Health) Series 2019B | 5.00% | | 10/01/39 (b)(g) | 3,000,000 | 3,832,500 |
| RB (Providence St Joseph Health) Series 2019C | 5.00% | | 10/01/39 (b)(g) | 5,000,000 | 6,081,300 |
| Refunding RB (St. Joseph Health) Series 2009C | 5.00% | | 07/01/34 (b)(g) | 1,200,000 | 1,315,320 |
| California Public Finance Auth |
| RB (Sharp Healthcare) Series 2017C | 0.01% | | 08/01/52 (a)(b)(h) | 2,660,000 | 2,660,000 |
| California Statewide Communities Development Auth |
| RB (Adventist Health System) Series 2007A | 5.00% | | 03/01/37 (b)(g) | 2,000,000 | 2,431,500 |
| Eastern Municipal Water District |
| Water & Wastewater Refunding RB Series 2018C | | | | | |
| (SIFMA Municipal Swap Index + 0.25%) | 0.34% | | 07/01/46 (b) | 2,450,000 | 2,448,677 |
| Los Angeles |
| M/F Housing RB (Jordan Downs Apts) Series 2018A2 | 2.08% | | 01/01/22 (a)(b) | 2,800,000 | 2,815,092 |
| Los Angeles Dept of Water & Power |
| Water System RB Series 2001B4 | 0.01% | | 07/01/35 (a)(b)(h) | 300,000 | 300,000 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Southern California Metropolitan Water District | | | |
| Sub Water Refunding RB Series 2017D | | | | | |
| (SIFMA Municipal Swap Index + 0.25%) | 0.34% | | 07/01/37 (b) | 3,130,000 | 3,130,000 |
| Water RB Series 2017A | 0.02% | | 07/01/47 (a)(b)(h) | 450,000 | 450,000 |
| Total Variable-Rate Obligations |
| (Cost $57,709,860) | | | | | 58,482,799 |
| (a) | Credit-enhanced or liquidity-enhanced. |
| (b) | The effective maturity may be shorter than the final maturity shown because the security is subject to a put, demand or call feature. |
| (c) | Refunded bond. |
| (d) | Zero coupon bond. |
| (e) | Security or a portion of the security purchased on a delayed-delivery or when-issued basis. |
| (f) | All or a portion of this security is designated as collateral for delayed-delivery securities. |
| (g) | Bond currently pays a fixed coupon rate and will be remarketed at a to be determined rate at the end of the current fixed rate term. |
| (h) | VRDN is a municipal security which allows holders to sell their security through a put or tender feature, at par value plus accrued interest. The interest rate resets on a periodic basis, the majority of which are weekly but may be daily or monthly. Unless a reference rate and spread is shown parenthetically, the Remarketing Agent, generally a dealer, determines the interest rate for the security at each interest rate reset date. The rate is typically based on the SIFMA Municipal Swap Index. |
| | |
| BAN — | Bond anticipation note |
| CCD — | Community college district |
| COP — | Certificate of participation |
| GO — | General obligation |
| HSD — | High school district |
| M/F — | Multi-family |
| RB — | Revenue bond |
| SD — | School district |
| S/F — | Single-family |
| SIFMA — | Securities Industry and Financial Markets Association. The SIFMA Municipal Swap Index is a market index comprised of high-grade 7-day tax-exempt Variable Rate Demand Obligations with certain characteristics. |
| TRAN — | Tax and revenue anticipation note |
| UHSD — | Union high school district |
| USD — | Unified school district |
| VRDN — | Variable rate demand note |
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2020 (see financial note 2(a) for additional information):
| Description | Quoted Prices in
Active Markets for
Identical Assets
(Level 1) | Other Significant
Observable Inputs
(Level 2) | Significant
Unobservable Inputs
(Level 3) | Total | |
| Assets | | | | | |
| Fixed-Rate Obligations1 | $— | $437,553,090 | $— | $437,553,090 | |
| Variable-Rate Obligations1 | — | 58,482,799 | — | 58,482,799 | |
| Total | $— | $496,035,889 | $— | $496,035,889 | |
| 1 | As categorized in Portfolio Holdings. |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Statement of Assets and Liabilities
As of August 31, 2020
| Assets |
| Investments in unaffiliated issuers, at value (cost $471,014,994) | | $496,035,889 |
| Cash | | 163,061 |
| Receivables: | | |
| Investments sold | | 2,684,594 |
| Interest | | 4,633,742 |
| Fund shares sold | | 1,131,711 |
| Prepaid expenses | + | 21,123 |
| Total assets | | 504,670,120 |
| Liabilities |
| Payables: | | |
| Investments bought - delayed-delivery | | 14,028,654 |
| Investment adviser and administrator fees | | 104,849 |
| Shareholder service fees | | 98,349 |
| Fund shares redeemed | | 1,593,495 |
| Distributions to shareholders | | 309,015 |
| Accrued expenses | + | 77,928 |
| Total liabilities | | 16,212,290 |
| Net Assets |
| Total assets | | 504,670,120 |
| Total liabilities | – | 16,212,290 |
| Net assets | | $488,457,830 |
| Net Assets by Source | | |
| Capital received from investors | | 460,580,974 |
| Total distributable earnings | | 27,876,856 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $488,457,830 | | 39,842,521 | | $12.26 |
| | | | | |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Statement of Operations
For the period September 1, 2019 through August 31, 2020
| Investment Income |
| Interest | | $11,649,099 |
| Expenses |
| Portfolio accounting fees | | 97,747 |
| Investment adviser and administrator fees | | 1,419,114 |
| Professional fees | | 40,220 |
| Registration fees | | 25,497 |
| Shareholder service fees | | 1,126,226 |
| Independent trustees’ fees | | 16,417 |
| Shareholder reports | | 10,414 |
| Custodian fees | | 7,183 |
| Transfer agent fees | | 6,009 |
| Other expenses | + | 8,218 |
| Total expenses | | 2,757,045 |
| Expense reduction by CSIM and its affiliates | – | 438,295 |
| Net expenses | – | 2,318,750 |
| Net investment income | | 9,330,349 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on investments | | 4,251,904 |
| Net realized losses on futures contracts | + | (545,589) |
| Net realized gains | | 3,706,315 |
| Net change in unrealized appreciation (depreciation) on investments | | (2,467,708) |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | (11,963) |
| Net change in unrealized appreciation (depreciation) | + | (2,479,671) |
| Net realized and unrealized gains | | 1,226,644 |
| Increase in net assets resulting from operations | | $10,556,993 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab California Tax-Free Bond Fund
Statement of Changes in Net Assets
For the current and prior report periods
| Operations | |
| | 9/1/19-8/31/20 | 9/1/18-8/31/19 |
| Net investment income | | $9,330,349 | $10,102,489 |
| Net realized gains | | 3,706,315 | 2,021,099 |
| Net change in unrealized appreciation (depreciation) | + | (2,479,671) | 17,717,750 |
| Increase in net assets from operations | | 10,556,993 | 29,841,338 |
| Distributions to Shareholders | |
| Total distributions | | ($10,732,869) | ($10,102,053) |
| Transactions in Fund Shares | | | |
| | | 9/1/19-8/31/20 | 9/1/18-8/31/19 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 13,056,152 | $158,302,131 | 12,803,790 | $151,904,388 |
| Shares reinvested | | 545,637 | 6,611,595 | 516,767 | 6,115,107 |
| Shares redeemed | + | (13,632,904) | (163,782,365) | (7,262,901) | (85,403,200) |
| Net transactions in fund shares | | (31,115) | $1,131,361 | 6,057,656 | $72,616,295 |
| Shares Outstanding and Net Assets | | | |
| | | 9/1/19-8/31/20 | 9/1/18-8/31/19 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 39,873,636 | $487,502,345 | 33,815,980 | $395,146,765 |
| Total increase | + | (31,115) | 955,485 | 6,057,656 | 92,355,580 |
| End of period | | 39,842,521 | $488,457,830 | 39,873,636 | $487,502,345 |
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Funds
1. Business Structure of the Funds:
Each of the funds in this report is a series of Schwab Investments (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the funds discussed in this report, which are highlighted:
| SCHWAB INVESTMENTS (ORGANIZED OCTOBER 26, 1990) |
| Schwab Tax-Free Bond Fund | Schwab U.S. Aggregate Bond Index Fund |
| Schwab California Tax-Free Bond Fund | Schwab Short-Term Bond Index Fund |
| Schwab High Yield Municipal Bond Fund | Schwab 1000 Index® Fund |
| Schwab Treasury Inflation Protected Securities Index Fund | Schwab Global Real Estate Fund |
Each fund in this report offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds’ Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
(a) Security Valuation:
Under procedures approved by the Board, the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. Among other things, these procedures allow the funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:
• Bonds and notes: Fixed income investments are generally valued using an evaluated price at the mid-point of the bid/ask spread provided by an approved, independent pricing service (mid-price). To determine the evaluated mid-price, a pricing service may use a variety of techniques and inputs. Techniques may include, but are not limited to, spread models that calculate an investment-specific price relative to a benchmark or yield curve models that establish a price based on yields of comparable bonds along a range of maturities. Inputs differ by valuation approach and technique, as appropriate, and examples of inputs may include, but are not limited to, interest rates, market conditions, comparable bonds, market trades, projected cash flows, credit reviews and issuer news.
• Securities for which no quoted value is available: The Board has adopted procedures to fair value each fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Each fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the funds pursuant to the valuation procedures.
• Futures contracts: Futures contracts are valued at their settlement prices as of the close of their exchanges.
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Funds
Financial Notes (continued)
2. Significant Accounting Policies (continued):
• Short-term securities (60 days or less to maturity): Securities with remaining maturities of 60 days or less are generally valued at an evaluated price; however, such securities may be valued at their amortized cost if it approximates the security’s fair value.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the funds disclose the fair value of their investments in a hierarchy that prioritizes the significant inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If the funds determine that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
• Level 1—quoted prices in active markets for identical securities—Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities.
• 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 funds’ own assumptions in determining the fair value of investments)—Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the funds’ results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the funds’ investments as of August 31, 2020 are disclosed in the Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. A fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures contracts are traded publicly on exchanges, and their fair value may change daily.
Delayed Delivery Transactions and When-Issued Securities: During the period, certain funds transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the funds’ Portfolio Holdings. The funds may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the funds identify securities as segregated in their records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract’s terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Funds
Financial Notes (continued)
2. Significant Accounting Policies (continued):
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
When a fund closes out a futures contract position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.
(d) Investment Income:
Interest income is recorded as it accrues. If a fund buys a debt security at a discount (less than face value) or a premium (more than face value), it amortizes premiums and accretes discounts from the purchase settlement date up to maturity. The fund then increases (in the case of discounts) or reduces (in the case of premiums) the income it records from the security. Certain securities may be callable (meaning that the issuer has the option to pay it off before its maturity date). The fund amortizes the premium and accretes the discount on each callable security to the security’s maturity date, except when the purchase price is higher than the call price at the security’s call date (in which case the premium is amortized to the call date).
(e) Expenses:
Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to more than one fund in the trusts generally are allocated among those funds in proportion to their average daily net assets.
(f) Distributions to Shareholders:
The funds declare distributions from net investment income, if any, every day they are open for business. These distributions, which are substantially equal to a fund’s net investment income for that day, are paid out to shareholders once a month. The funds make distributions from net realized capital gains, if any, once a year.
(g) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
(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 shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax.
(i) Indemnification:
Under the funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss attributable to these arrangements to be remote.
(j) Recent Accounting Standards:
In March 2020, the FASB issued Accounting Standards Update “Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848)” (ASU 2020-04), which provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank-offered based reference rates at the end of 2021. The temporary relief provided is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. At this time, management believes the adoption of ASU 2020-04 will not have a material impact to the financial statements.
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Schwab Tax-Free Bond Funds
Financial Notes (continued)
3. Risk Factors:
The funds invest primarily in investment-grade municipal bond securities. These investments may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below:
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.
Management Risk. As actively managed mutual funds, the funds are subject to the risk that their investment adviser will select investments or allocate assets in a manner that could cause a fund to underperform or otherwise not meet its investment objective. The funds’ investment adviser applies its own investment techniques and risk analyses in making investment decisions for each fund, but there can be no guarantee that they will produce the desired results.
Investment Style Risk. The funds are not designed to offer substantial capital appreciation. In exchange for its goal of capital preservation, a fund may offer lower long-term performance than stock investments or certain other types of bond investments. A fund’s emphasis on quality and preservation of capital also could cause it to underperform certain other types of bond investments, particularly those that take greater maturity and credit risks. At the same time, some of the funds’ investments may have greater risks than investments in some taxable bonds.
Interest Rate Risk. Interest rates rise and fall over time. As with any investment whose yield reflects current interest rates, a fund’s yield will change over time. During periods when interest rates are low, a fund’s yield (and total return) also may be low. Changes in interest rates also may affect a fund’s share price: a rise in interest rates generally causes a fund’s share price to fall. The longer a fund’s portfolio duration, the more sensitive to interest rate movements its share price is likely to be. Also, a change in a central bank’s monetary policy or economic conditions, among other things, may result in a change in interest rates, which could have sudden and unpredictable effects on the markets and significantly impact the value of fixed-income securities in which a fund invests.
Credit Risk. A decline in the credit quality of an issuer or guarantor of a portfolio investment could cause the funds to lose money or underperform. The funds could lose money if, due to a decline in credit quality, the issuer or guarantor of a portfolio investment fails to make, or is perceived as being unable or unwilling to make, timely principal or interest payments or otherwise honor its obligations.
Liquidity Risk. The funds may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the funds may have to sell them at a loss.
High-Yield Risk. High-yield securities and unrated securities of similar credit quality (junk bonds) are subject to greater levels of credit and liquidity risks, and may be more volatile than higher-rated securities. High-yield securities are considered predominately speculative with respect to the issuer’s continuing ability to make principal and interest payments.
Prepayment and Extension Risk. The funds’ portfolio investments are subject to the risk that the securities may be paid off earlier or later than expected. Either situation could cause the funds to hold securities paying lower-than-market rates of interest, which could hurt the funds’ yield or share price.
Municipal Securities Risk. The funds primarily invest in municipal securities whose interest, in the opinion of the issuers’ counsel, is exempt from federal income tax and from the AMT. Neither the investment adviser nor the funds guarantee that this opinion is correct, and there is no assurance that the Internal Revenue Service (IRS) will agree with such counsel’s opinion. If certain types of investments a fund buys as tax-exempt are later ruled to be taxable, a portion of the fund’s income could be taxable. To the extent that a fund invests in municipal securities from a given state or geographic region, its share price and performance could be affected by local, state and regional factors, including erosion of the tax base and changes in the economic climate. In addition, many municipal securities are issued to finance specific projects (especially those relating to education, health care, transportation and utilities) and conditions in those sectors can affect the overall municipal market. National governmental actions, such as the elimination of tax-exempt status, or the reduction of financial support to municipalities, also could affect performance. Municipalities continue to experience difficulties in the current economic and political environment.
Derivatives Risk. Currently, the only type of derivatives the funds invest in is futures. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. A fund’s use of futures 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, credit risk, leverage risk, market risk and management risk, are discussed elsewhere in this section. A fund’s use of futures is also subject to lack of availability risk, valuation risk, correlation risk and tax risk. Lack of availability risk is the risk that suitable
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Schwab Tax-Free Bond Funds
Financial Notes (continued)
3. Risk Factors (continued):
futures transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular future may be valued incorrectly. Correlation risk is the risk that changes in the value of the future may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of futures may cause a fund to realize higher amounts of short-term capital gains. A fund’s use of derivatives could reduce the fund’s performance, increase the fund’s volatility, and cause the fund to lose more than the initial amount invested. However, these risks are less severe when a fund uses derivatives for hedging rather than to enhance the fund’s returns or as a substitute for a position or security. The use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) could cause a fund to become a commodity pool, which would require the fund to comply with certain CFTC rules.
California State-Specific Risk. Because the Schwab California Tax-Free Bond Fund concentrates its investments in California municipal securities, the fund may be affected significantly by economic, regulatory, social or political developments affecting the ability of California issuers to pay interest or repay principal.
Taxable Investments Risk. A fund may invest a portion of its assets in securities that generate income that is not exempt from federal income tax and in securities whose interest is subject to the AMT. These investments could generate taxable income for shareholders.
Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.
4. Affiliates and Affiliated Transactions:
Investment Adviser
Charles Schwab Investment Management, Inc. (CSIM or the investment adviser), a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement between it and the trust.
For its advisory and administrative services to the funds, CSIM is entitled to receive an annual fee, payable monthly, based on each fund’s average daily net assets as follows:
| % of Average Daily Net Assets | Schwab
Tax-Free
Bond Fund | Schwab
California Tax-Free
Bond Fund |
| First $500 million | 0.30% | 0.30% |
| Over $500 million | 0.22% | 0.22% |
For the period ended August 31, 2020, the aggregate advisory fees paid to CSIM by the funds, as a percentage of each fund’s average daily net assets were as follows:
| Schwab Tax-Free Bond Fund | 0.27% |
| Schwab California Tax-Free Bond Fund | 0.30% |
Shareholder Servicing
The Board has adopted a Shareholder Servicing Plan (the Plan) on behalf of the funds. The Plan enables each fund to bear expenses relating to the provision by financial intermediaries, including Charles Schwab & Co., Inc. (a broker-dealer affiliate of CSIM, Schwab) (together, service providers), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the funds.
Pursuant to the Plan, each fund’s shares are subject to an annual shareholder servicing fee up to 0.25%. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab, as distributor of the funds (or, in the case of payments made to Schwab acting as a service provider, pursuant to Schwab’s written agreement with the funds), and a fund will pay no more than 0.25% of the average annual daily net asset value of the fund shares owned by shareholders holding shares through such service provider. Payments under the Plan are made as described above without regard to whether the fee is more or less than the service provider’s actual cost of providing the services, and if more, such excess may be retained as profit by the service provider.
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Schwab Tax-Free Bond Funds
Financial Notes (continued)
4. Affiliates and Affiliated Transactions (continued):
Expense Limitation
Although these agreements specify certain fees for these services, CSIM and its affiliates have made an additional agreement with the funds, for so long as CSIM serves as the investment adviser to the funds, which may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes and certain non-routine expenses (expense limitation) to 0.49%.
Interfund Transactions
The funds may engage in transactions with certain other funds in the Fund Complex (for definition refer to Trustees and Officers section) when permitted by applicable law. When one fund is seeking to sell a security that another is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs. This practice is limited to funds that share the same investment adviser, trustees and/or officers. For the period ended August 31, 2020, each fund’s total aggregate security transactions with other funds in the Fund Complex as well as any realized gains (losses) were as follows:
| | Total Aggregate Transactions | Realized Gains (Losses) |
| Schwab Tax-Free Bond Fund | $37,058,272 | $— |
| Schwab California Tax-Free Bond Fund | 18,987,288 | — |
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions with other funds in the Fund Complex. All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The funds had no interfund borrowing or lending activity during the period.
5. Board of Trustees:
The Board may include people who are officers and/or directors of CSIM or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of these interested persons for their services as trustees, but it did pay non-interested persons (independent trustees), as noted on each fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.
6. Borrowing from Banks:
During the period, the funds were participants with other funds in the Fund Complex in a joint, syndicated, committed $750 million line of credit (the Syndicated Credit Facility), which matured on October 3, 2019. On October 3, 2019, the Syndicated Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on October 1, 2020. On October 1, 2020, the Syndicated Credit Facility was further amended to run for a new 364 day period with a line of credit of $850 million, maturing on September 30, 2021. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by a fund, each fund paid a commitment fee of 0.15% per annum on its 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 $500 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, which was scheduled to mature on November 27, 2020. However, on October 1, 2020, the Uncommitted Credit Facility was amended to run for a new 364 day period with a line of credit of $400 million, maturing on September 30, 2021. Under the terms of the Uncommitted Credit Facility, each fund pays interest on the amount it borrows. There were no borrowings from either line of credit during the period.
The funds also have access to custodian overdraft facilities. A fund may have utilized the overdraft facility and incurred an interest expense, which is disclosed on each fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
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Financial Notes (continued)
7. Derivatives:
The funds entered into U.S. Treasury futures contracts during the report period. The funds invested in futures contracts to help manage the effects of interest rate changes. The current value and variation margin for futures contracts held at August 31, 2020, if any, are presented on the Portfolio Holdings and Statement of Assets and Liabilities, respectively. The net realized and change in unrealized gains (losses) on futures contracts are presented on the Statement of Operations. Refer to financial note 2(b) for the funds’ accounting policies with respect to futures contracts and financial note 3 for disclosures concerning the risks of investing in futures contracts. During the period ended August 31, 2020, 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:
| | Notional Amounts | Number of Contracts |
| Schwab Tax-Free Bond Fund | ($2,733,454) | 17 |
| Schwab California Tax-Free Bond Fund | (3,050,317) | 18 |
8. Purchases and Sales/Maturities of Investment Securities:
For the period ended August 31, 2020, purchases and sales/maturities of securities (excluding short-term obligations) were as follows:
| | Purchases
of Securities | Sales/Maturities
of Securities |
| Schwab Tax-Free Bond Fund | $754,193,903 | $740,949,577 |
| Schwab California Tax-Free Bond Fund | 385,205,937 | 373,499,892 |
9. Federal Income Taxes:
As of August 31, 2020, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
| | Schwab
Tax-Free
Bond Fund | | Schwab
California Tax-Free
Bond Fund |
| Tax cost | $720,679,287 | | $471,048,991 |
| Gross unrealized appreciation | $39,448,793 | | $25,481,355 |
| Gross unrealized depreciation | — | | (494,457) |
| Net unrealized appreciation (depreciation) | $39,448,793 | | $24,986,898 |
As of August 31, 2020, the components of distributable earnings on a tax basis were as follows:
| | Schwab
Tax-Free
Bond Fund | | Schwab
California Tax-Free
Bond Fund |
| Undistributed tax-exempt income | $633,356 | | $303,251 |
| Undistributed ordinary income | — | | 14,234 |
| Undistributed long-term capital gains | 1,859,904 | | 2,881,488 |
| Net unrealized appreciation (depreciation) on investments | 39,448,793 | | 24,986,898 |
| Total | $41,942,053 | | $28,185,871 |
The primary difference between book basis and tax basis unrealized appreciation or unrealized depreciation of investments are the tax deferral of losses on wash sales and the differing treatment of amortization of bond discounts and premiums. The tax cost of the funds’ investments, disclosed above, have been adjusted from their book amounts to reflect these appreciation or depreciation differences, as applicable.
Net investment income and realized capital gains and losses may differ for financial statement and tax purposes primarily due to differing treatments of amortization of bond discounts and premiums.
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Schwab Tax-Free Bond Funds
Financial Notes (continued)
9. Federal Income Taxes (continued):
Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of August 31, 2020, the funds had no capital loss carryforwards available to offset future net capital gains.
The tax basis components of distributions paid during the current and prior fiscal years ended were as follows:
| | Schwab
Tax-Free Bond
Fund | Schwab California
Tax-Free
Bond Fund |
| Current Period Distributions | | |
| Tax-exempt income | $15,978,747 | $9,329,822 |
| Ordinary income | 920,038 | 120,150 |
| Long-term capital gains | 1,161,085 | 1,282,897 |
| Prior Period Distributions | | |
| Tax-exempt income | $16,665,627 | $10,102,053 |
Permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments will have no impact on net assets or the results of operations.
As of August 31, 2020, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the fiscal year ended August 31, 2020, the funds did not incur any interest or penalties.
10. Independent Registered Public Accounting Firm:
On June 8, 2020, the Audit, Compliance and Valuation Committee of the Board approved, and on June 9, 2020, the Board approved, Deloitte & Touche LLP as the independent registered accounting firm of the Schwab Funds Complex for fiscal periods ending after June 8, 2020.
On June 8, 2020, PricewaterhouseCoopers LLP (the “Prior Auditor”) resigned as the independent registered public accounting firm of the Schwab Funds Complex. The Prior Auditor’s reports on the financial statements of the funds for the past two fiscal years, the years ended August 31, 2018 and August 31, 2019, did not contain an adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles. During the last two fiscal year-ends and through June 8, 2020, there were no (1) disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its reports on the funds’ financial statements for such periods; or (2) “reportable events,” as that term is defined in Item 304 (a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934.
11. Subsequent Events:
Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
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Schwab Tax-Free Bond Funds
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Schwab Investments and Shareholders of Schwab Tax-Free Bond Fund and Schwab California Tax-Free Bond Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities, including the portfolio holdings, of Schwab Tax-Free Bond Fund and Schwab California Tax-Free Bond Fund (the “Funds”), two of the funds constituting Schwab Investments, as of August 31, 2020, and the related statements of operations, statements of changes in net assets, and the financial highlights for the year then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2020, and the results of their operations, the changes in their net assets, and the financial highlights for the year then ended in conformity with accounting principles generally accepted in the United States of America. The statements of changes in net assets for the year ended August 31, 2019 and the financial highlights for each of the four years in the period ended August 31, 2019 were audited by other auditors, whose report, dated October 17, 2019, expressed an unqualified opinion on such statements of changes in net assets and financial highlights.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2020, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
Denver, Colorado
October 19, 2020
We have served as the auditor of one or more investment companies in the Schwab Funds Complex since 2020.
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Other Federal Tax Information (unaudited)
Under section 852(b)(5) of the Internal Revenue Code (and section 17145 of the California Revenue and Taxation Code with respect to the Schwab California Tax-Free Bond Fund), the funds designate the following percentage of the distributions paid from net investment income as exempt-interest dividends for the fiscal year ended August 31, 2020.
| | Percentage |
| Schwab Tax-Free Bond Fund | 100.0% |
| Schwab California Tax-Free Bond Fund | 100.0% |
Under section 852(b)(3)(C) of the Internal Revenue Code, the funds hereby designate the following amounts as long-term capital gain dividends for the fiscal year ended August 31, 2020:
| | |
| Schwab Tax-Free Bond Fund | $1,161,085 |
| Schwab California Tax-Free Bond Fund | 1,282,897 |
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Schwab Tax-Free Bond Funds
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 (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 and administration agreement (the Agreement) between Schwab Investments (the Trust) and Charles Schwab Investment Management, Inc. (CSIM) with respect to the existing funds in the Trust, including Schwab Tax-Free Bond Fund and Schwab California Tax-Free Bond Fund (the Funds), and to review certain other agreements pursuant to which CSIM 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 CSIM, including information about CSIM’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 CSIM seeking certain relevant information. The responses by CSIM 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 CSIM 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 11, 2020 and June 9, 2020, and approved the renewal of the Agreement with respect to the Funds for an additional one-year term at the meeting on June 9, 2020 called for the purpose of voting on such approval.1
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 CSIM and its affiliates dedicated to the Funds; |
| 2. | each Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data; |
| 3. | each Fund’s expenses and how those expenses compared to those of certain other similar mutual funds; |
| 4. | the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to each Fund, including both direct and indirect benefits accruing to CSIM 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 CSIM to the Funds and the resources of CSIM and its affiliates dedicated to the Funds. In this regard, the Trustees evaluated, among other things, CSIM’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 CSIM 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, fund accounting and custody, and vendor and risk oversight. The Trustees also considered investments CSIM has made in its infrastructure, including modernizing CSIM’s technology and use of data, increasing expertise in key areas (including portfolio management and trade operations), and improving business continuity, cybersecurity, due diligence, risk management processes, and information security programs, which are designed to provide enhanced services to the Funds and their shareholders. The Trustees also considered Schwab’s wide range of products, services, and channel alternatives such as investment research tools and an array of account features that benefit Fund shareholders who are
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Schwab Tax-Free Bond Funds
brokerage clients of Schwab. Finally, the Trustees also considered Schwab’s reputation as a full service brokerage firm and its overall financial condition including Schwab’s ability to maintain consistent operations and service levels during recent periods of remote work and market volatility. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by CSIM to the Funds and the resources of CSIM 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 mutual funds and applicable indices/benchmarks, in light of total return, yield, if applicable, and market trends, as well as in consideration of each Fund’s investment style and strategy attributes and disclosures. 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 the appropriateness of the benchmark used to compare the performance of each Fund. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and adviser 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, with respect to each Fund, the performance of such 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 net operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. CSIM reported to the Board, and the Board took into account, the risk assumed by CSIM in the development of products and provision of services as well as the competitive marketplace for financial products. The Trustees considered the effects of CSIM’s and Schwab’s practice of waiving certain fees to prevent total annual operating expenses of the Funds from exceeding a specified cap. The Trustees also considered CSIM’s contractual commitment to keep each Fund’s expense cap for so long as CSIM serves as the adviser to the Fund. The Trustees also considered fees charged by CSIM to other mutual funds and to other types of accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating
features of mutual funds as compared to these other types of accounts, and any differences in the nature and scope of the services CSIM provides to these other accounts, as well as differences in the market for these types of accounts. Following such evaluation, the Board concluded, within the context of its full deliberations, that, with respect to each Fund, the expenses of such Fund are reasonable and supported renewal of the Agreement with respect to such Fund.
Profitability. The Trustees considered the compensation flowing to CSIM and its affiliates, directly or indirectly and reviewed profitability on a pre-tax basis, without regard to distribution expenses. In this connection, the Trustees reviewed management’s profitability analyses. The Trustees also reviewed profitability of CSIM 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 fixed costs across the Funds and other funds in the complex. The Trustees also considered any other benefits derived by CSIM from its relationship with the Funds, such as whether, by virtue of its management of the Funds, CSIM 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 and justified in light of the quality of all services rendered to the Funds by CSIM and its affiliates. The Trustees noted that CSIM 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 CSIM 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, the Trustees considered the potential existence of any economies of scale 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 CSIM in CSIM’s infrastructure, including modernizing CSIM’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; (ii) graduated investment advisory fee schedules or unitary fee structures, fee waivers, or expense caps by CSIM and its affiliates for those funds in the Schwab fund complex with such features; and (iii) pricing a fund to scale and keeping overall expenses down as the fund grows. The Trustees acknowledged that CSIM has shared any economies of scale with the Funds by investing in CSIM’s infrastructure, as discussed above, over time and that CSIM’s
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internal costs of providing investment management, technology, administrative, legal and compliance services to the Funds continues to increase as a result of regulatory or other developments. The Trustees considered that CSIM and its affiliates may employ contractual expense caps to protect shareholders from high fees when fund assets are relatively small, for example, in the case of newer funds or funds with investment strategies that are from time to time out of favor, because, among other reasons, shareholders may benefit from the continued availability of such funds at subsidized expense levels. 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 such services and expenses and such other matters as the Trustees have considered to be relevant in the exercise of their reasonable judgment.
| 1 | The meeting on June 9, 2020 was held telephonically in reliance on exemptive relief from the in-person voting requirement under the 1940 Act as provided by the Securities and Exchange Commission. |
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Schwab Tax-Free Bond Funds
Trustees and Officers
The tables below give information about the trustees and officers of Schwab Investments, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 100 funds.
The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-877-824-5615.
| Independent Trustees |
Name, Year of Birth, and
Position(s) with the trust
(Terms of office, and
length of Time Served1) | Principal Occupations
During the Past Five Years | Number of
Portfolios in
Fund Complex
Overseen by
the Trustee | Other Directorships |
Robert W. Burns
1959
Trustee
(Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor (Jan. 2009 – present). Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) (investment management firm) and President, PIMCO Funds. | 100 | None |
John F. Cogan
1947
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust since 2010; Schwab Strategic Trust since 2016) | Senior Fellow (Oct. 1979 – present), The Hoover Institution at Stanford University (public policy think tank); Senior Fellow (2000 – present), Stanford Institute for Economic Policy Research; Professor of Public Policy (1994 – 2015), Stanford University. | 100 | Director (2005 – present), Gilead Sciences, Inc. |
Nancy F. Heller
1956
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services). | 100 | None |
Stephen Timothy Kochis
1946
Trustee
(Trustee of Schwab Strategic Trust since 2012; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | CEO and Owner (May 2012 – present), Kochis Global (wealth management consulting). | 100 | None |
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| Independent Trustees (continued) |
Name, Year of Birth, and
Position(s) with the trust
(Terms of office, and
length of Time Served1) | Principal Occupations
During the Past Five Years | Number of
Portfolios in
Fund Complex
Overseen by
the Trustee | Other Directorships |
David L. Mahoney
1954
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 100 | Director (2004 – present), Corcept Therapeutics Incorporated
Director (2009 – present), Adamas Pharmaceuticals, Inc.
Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff
1961
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 100 | None |
Kiran M. Patel
1948
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Retired. Executive Vice President and General Manager of Small Business Group (Dec. 2008 – Sept. 2013), Intuit, Inc. (financial software and services firm for consumers and small businesses). | 100 | Director (2008 – present), KLA-Tencor Corporation |
Kimberly S. Patmore
1956
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Consultant (2008 – present), Patmore Management Consulting (management consulting). | 100 | None |
Gerald B. Smith
1950
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2000; Laudus Trust since 2010; Schwab Strategic Trust since 2016) | Chairman, Chief Executive Officer and Founder (Mar. 1990 – present), Smith Graham & Co. (investment advisors). | 100 | Director (2012 – present), Eaton Corporation plc |
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Schwab Tax-Free Bond Funds
| Interested Trustees |
Name, Year of Birth, and
Position(s) with the trust
(Terms of office, and
length of Time Served1) | Principal Occupations
During the Past Five Years | Number of
Portfolios in
Fund Complex
Overseen by
the Trustee | Other Directorships |
Walter W. Bettinger II2
1960
Chairman and Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Director, President and Chief Executive Officer (Oct. 2008 – present), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – present) and Director (May 2008 – present), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – present), Charles Schwab Investment Management, Inc. | 100 | Director (2008 – present), The Charles Schwab Corporation |
Jonathan de St. Paer2
1973
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Director (Apr. 2019 – present), President (Oct. 2018 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present), Charles Schwab Investment Advisory, Inc.; Trustee and Chief Executive Officer (Apr. 2019 – present) and President (Nov. 2018 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. | 100 | None |
Joseph R. Martinetto2
1962
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation. | 100 | None |
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| Officers of the Trust |
Name, Year of Birth, and Position(s) with the trust
(Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Jonathan de St. Paer
1973
President and Chief Executive Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Director (Apr. 2019 – present), President (Oct. 2018 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present), Charles Schwab Investment Advisory, Inc.; Trustee and Chief Executive Officer (Apr. 2019 – present) and President (Nov. 2018 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. |
Mark Fischer
1970
Treasurer and Chief Financial Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Treasurer and Chief Financial Officer (Jan. 2016 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Funds; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management. |
Omar Aguilar
1970
Senior Vice President and Chief Investment Officer – Equities and Multi-Asset Strategies
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer – Equities and Multi-Asset Strategies (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Head of the Portfolio Management Group and Vice President of Portfolio Management (May 2009 – Apr. 2011), Financial Engines, Inc. (investment management firm); Head of Quantitative Equity (July 2004 – Jan. 2009), ING Investment Management. |
Brett Wander
1961
Senior Vice President and Chief Investment Officer – Fixed Income
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer – Fixed Income (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm). |
David Lekich
1964
Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs
Vice President and Assistant Clerk, Laudus Funds
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President (Sept. 2011 – present) and Vice President (Mar. 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present) and Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (Apr. 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk (Apr. 2011 – present), Laudus Funds; Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs. |
Catherine MacGregor
1964
Vice President and Assistant Secretary, Schwab Funds and Schwab ETFs
Chief Legal Officer, Vice President and Clerk, Laudus Funds
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Vice President (July 2005 – present), Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary (Oct. 2009 – present), Schwab ETFs. |
| 1 | Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first. |
| 2 | Mr. Bettinger, Mr. de St. Paer and Mr. Martinetto are Interested Trustees. Mr. Bettinger is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc. (CSIM), the investment adviser for the trusts in the Fund Complex, is an employee and director of Charles Schwab & Co., Inc. (CS&Co), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust, and is a director of CSIM. Mr. de St. Paer is an Interested Trustee because he owns stock of CSC and is an employee and director of CSIM. Mr. Martinetto is an Interested Trustee because he owns stock of CSC and is an employee and director of CS&Co. |
| 3 | The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board. |
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Schwab Tax-Free Bond Funds
agency discount notes Notes issued by federal agencies—known as Government Sponsored Enterprises, or GSEs—at a discount to their value at maturity. An agency discount note is a short-term investment offering a high degree of credit quality.
Alternative Minimum Tax (AMT) A federal income tax designed to limit the extent to which high-income taxpayers (including individuals, estates, trusts and corporations) can benefit from certain deductions and exemptions. For example, some types of income that are exempt from regular federal income tax are not exempt from the AMT.
asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset-backed securities Bond or other debt securities that represent ownership in a pool of assets such as credit card debt.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
average rate The average rate of interest paid annually by the fixed-income securities in a fund or portfolio.
Bloomberg Barclays California Municipal 3-15 Year Blend Index An index that measures the performance of U.S. tax exempt bonds issued in the State of California with maturities greater than or equal to three years and less than fifteen years that have par value of at least $7 million. The securities in the index must be denominated in U.S. dollars and must be fixed-rate. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds, and prerefunded bonds. The securities in the index must be rated investment grade. The index is rebalanced at each month-end. At each rebalancing, cash is effectively reinvested into the return universe for the following month.
Bloomberg Barclays Municipal 3-15 Year Blend Index An index that measures the performance of U.S. tax exempt bonds with maturities greater than or equal to three years and less than fifteen years that have par value of at least $7 million. The securities in the index must be denominated in U.S. dollars and must be fixed-rate. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds, and prerefunded bonds. The securities in the index must be rated investment grade. The index is rebalanced at each month-end. At each rebalancing, cash is effectively reinvested into the return universe for the following month.
bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
call An early repayment of a bond’s principal by the issuer, usually done because the issuer is able to refinance its bond debt at a lower rate.
call protection A term used in reference to a bond that cannot be called by the issuer before maturity, or at least for many years from the present date. A bond that offers call protection can more reliably be expected to provide a given yield over a given number of years than a bond that could be called (assuming both bonds are of the same credit quality).
capital gain, capital loss The difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the gain or loss is still “on paper” and is considered unrealized.
certificate of participation A municipal bond that is repaid from an annual budget appropriation rather than being backed by the full faith and credit of the issuer.
coupon, coupon rate The annual rate of interest paid until maturity by the issuer of a debt security.
credit-enhanced securities Securities that are backed by the credit of an entity other than the issuer (such as a financial institution). Credit enhancements, which can equal up to 100% of the security’s value, are designed to help lower the risk of default on a security and may also make the security more liquid.
credit quality The capacity of an issuer to make its interest and principal payments. See chart below.
credit risk The risk that a bond issuer may be unable to pay interest or principal to its bondholders.
Credit Ratings Most major bond issuers arrange with a recognized independent rating organization, such as Standard & Poor’s (S&P) or Moody’s Investors Service, to rate the creditworthiness of their bonds. The spectrum of these ratings is divided into two major categories: investment grade and below investment grade (sometimes called “junk bonds”). Bonds rated below investment grade range from those that are considered to have some vulnerability to default to those that appear on the brink of default or are in default. |
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discount rate The implied rate on a debt security that does not pay interest but is bought at a discount and redeemed at face value when it matures.
duration A measure of an individual bond’s sensitivity to interest rates, expressed in years. Calculations of duration generally take into account the bond’s yield, interest payments, maturity date and call features.
weighted average duration A measure of the duration of all bonds in a fund’s portfolio, also expressed in years, based on the market value weighted average duration of each bond in the portfolio.
expense ratio The amount that is taken from a mutual fund’s assets each year to cover the fund’s operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.
general obligation bonds Municipal bonds that are secured by the issuer’s full faith and credit, which typically is backed by the power of the issuer to levy taxes.
interest Payments to bondholders (usually made twice a year) as compensation for loaning the bond principal to the issuer.
interest rate risk The risk that a bond’s value will fluctuate if market interest rates change or are expected to change. Bond prices tend to move in the opposite direction of interest rates: when interest rates rise, bond prices tend to fall.
liquidity-enhanced security A security that when tendered is paid from funds advanced by an entity other than the issuer (such as a large financial institution). Liquidity enhancements are often used on variable-rate securities where the portfolio manager has an option to tender the securities prior to their final maturity.
market risk Those elements of risk that are common to all securities in an asset class, and therefore cannot be significantly reduced by diversification within the asset class. Also known as “systemic risk.”
maturity The maturity of a bond will generally be determined using a portfolio security’s final maturity date (date on which the final principal payment of a bond is scheduled to be paid); however, for securitized products, such as mortgage-backed securities and certain other asset-backed securities, maturity will be determined on an average life basis (weighted average time to receipt of all principal payments) by the investment adviser. Because pre-payment rates of individual mortgage pools vary widely, the average life of a particular pool cannot be predicted precisely. For securities with embedded demand features, such as puts or calls, either the demand date or the final maturity date will be used depending on interest rates, yields and other market conditions. The weighted average maturity (WAM) of a fund is dollar-weighted based upon the market value of a fund’s securities at the time of the calculation.
mortgage-backed securities Bond or other debt securities that represent ownership in a pool of mortgage loans.
muni, municipal bonds, municipal securities Debt securities issued by a state, its counties, municipalities, authorities and other subdivisions, or the territories and possessions of the United States and the District of Columbia, including their subdivisions, agencies and instrumentalities and corporations. These securities may be issued to obtain money for various public purposes, including the construction of a wide range of public facilities such as airports, bridges, highways, housing, hospitals, mass transportation, public utilities, schools, streets, and water and sewer works.
net asset value (NAV) The value of one share of a mutual fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
prepayment risk The risk that a mortgage-backed security may be paid off early, typically because interest rates have fallen and the homeowners who hold the underlying mortgages have refinanced those mortgages at lower rates. In this type of situation, the investor who held the mortgage-backed security will usually have to settle for a lower rate when reinvesting the principal.
refunded bond A bond for which the principal and interest payments are secured or guaranteed by cash or U.S. government securities held in an escrow account.
restricted securities Securities that are subject to contractual restrictions on resale. These securities are often purchased in private placement transactions.
revenue bonds Municipal bonds that are issued to finance public works projects and are secured by revenue generated by the project (such as water and sewer fees) rather than the full faith and credit of the issuer.
S&P 500 Index An index that is designed to measure the performance of 500 leading publicly traded companies from a broad range of industries.
S&P California AMT-Free Municipal Bond Index A broad, comprehensive market value-weighted index designed to measure the performance of investment-grade tax-exempt bonds issues within California.
S&P National AMT-Free Municipal Bond Index A broad, comprehensive market value-weighted index designed to measure the performance of the investment-grade tax-exempt U.S. municipal bond market.
section 4(2)/144A securities Securities exempt from registration under Section 4(2) of the Securities Act of 1933. These securities may be sold only to qualified institutional buyers under Securities Act Rule 144A.
taxable equivalent yield The yield an investor would need to get from a taxable investment in order to match the yield paid by a given tax-exempt investment, once the effect of all applicable taxes is taken into account. For example, if your tax rate were 25%, a tax-exempt investment paying 4.5% would have a taxable equivalent yield for you of 6.0% (4.5% ÷ [1 – 0.25%] = 6.0%).
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
weighted average For mutual funds, an average that gives the same weight to each security as the security represents in the fund’s portfolio.
yield The income paid out by an investment, expressed as a percentage of the investment’s market value.
yield to maturity The annualized rate of return a bondholder could expect if the bond were held to maturity. In addition to interest payments, yield to maturity also factors in any difference between a bond’s current price and its principal amount, or face value.
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Schwab Tax-Free Bond Funds
PRIVACY NOTICE
THIS IS NOT PART OF THE SHAREHOLDER REPORT
A Commitment to Your Privacy
Your Privacy Is Not for Sale
We do not and will not sell your personal information to anyone, for any reason.
We are committed to protecting the privacy of information we maintain about you. Below are details about our commitment, including the types of information we collect and how we use and share that information. This Privacy Notice applies to you only if you are an individual who invests directly in the funds by placing orders through the funds’ transfer agent. If you place orders through your brokerage account at Charles Schwab & Co., Inc. or an account with another broker-dealer, investment advisor, 401(k) plan, employee benefit plan, administrator, bank or other financial intermediary, you are covered by the privacy policies of that financial institution and should consult those policies.
How We Collect Information About You
We collect personal information about you in a number of ways.
• APPLICATION AND REGISTRATION
INFORMATION.
We collect personal information from you when you open an account or utilize one of our services. We may also collect information about you from third parties such as consumer reporting agencies to verify your identity. The information we collect may include personal information, including your Social Security number, as well as details about your interests, investments and investment experience.
• TRANSACTION AND EXPERIENCE
INFORMATION.
Once your account has been opened, we collect and maintain personal information about your account activity, including your transactions, balances, positions and history. This information allows us to administer your account and provide the services you have requested.
• WEBSITE USAGE.
When you visit our websites, we may use devices known as “cookies,” graphic interchange format files (GIFs), or other similar web tools to enhance your web experience. These tools help us to recognize you, maintain your web session, and
provide a more personalized experience. To learn more, please go to www.schwab.com/privacy.
How We Share and Use Your Information
We provide access to information about you to our affiliated companies, outside companies and other third parties in certain limited circumstances, including:
• to help us process transactions for your account;
• when we use other companies to provide services for us, such as printing and mailing your account statements; and
• when we believe that disclosure is required or permitted under law (for example, to cooperate with regulators or law enforcement, resolve consumer disputes, perform credit/authentication checks, or for risk control).
State Laws
We will comply with state laws that apply to the disclosure or use of information about you.
Safeguarding Your Information — Security Is a Partnership
We take precautions to ensure the information we collect about you is protected and is accessed only by authorized individuals or organizations.
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Schwab Tax-Free Bond Funds | Annual Report
Schwab Tax-Free Bond Funds
Charles Schwab Investment Management
With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Charles Schwab Investment Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. The list below shows all currently available Schwab Funds®.
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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 Funds’ website at www.schwabfunds.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds 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.schwabfunds.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.
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Schwab High Yield Municipal Bond Fund
Schwab Money Funds2
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Charles Schwab Investment Management, Inc.
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Annual Report | August 31, 2020
Schwab High Yield Municipal Bond Fund
| New Notice Regarding Shareholder Report Delivery Options |
| Beginning on January 1, 2021, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary (such as a bank or broker-dealer). Instead, the reports will be made available on a fund’s website www.schwabfunds.com/schwabfunds_prospectus, and you will be notified by mail each time a report is posted and the mailing will provide a website link to access the report. You will continue to receive other fund regulatory documents (such as prospectuses or supplements) in paper unless you have elected to receive all fund documents electronically. |
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Schwab High Yield Municipal Bond Fund
Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM)
Distributor: Charles Schwab & Co., Inc. (Schwab)
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
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 may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabfunds.com/schwabfunds_prospectus.
| Total Returns for the 6 Months Ended August 31, 20201 |
| Schwab High Yield Municipal Bond Fund (Ticker Symbol: SWHYX) | -5.47% 2 |
| Bloomberg Barclays Municipal High Yield Index | -4.17% |
| Bloomberg Barclays Municipal Bond Index | 0.19% |
| Fund Category: Morningstar High Yield Muni3 | -3.91% |
| Performance Details | pages 7-9 |
All total return figures 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. Performance data quoted does not reflect the non-recurring redemption fee of 1% that may be charged if shares are sold or exchanged within 60 days of the purchase date. If these fees were reflected, the performance quoted would be lower.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
Expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, a fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
| 1 | Effective August 10, 2020, the Wasmer Schroeder High Yield Municipal Fund (the predecessor fund) was reorganized into the Schwab High Yield Municipal Bond Fund. The performance and financial history prior to August 10, 2020 are that of the predecessor fund. |
| 2 | Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semiannual reports. |
| 3 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Jonathan de St. Paer
President of Charles Schwab
Investment Management, Inc.
and the fund covered
in this report.
Dear Shareholder,
On August 10, 2020, following shareholder approval, the Wasmer Schroeder High Yield Municipal Fund (the predecessor fund) was reorganized into the Schwab High Yield Municipal Bond Fund. Following this reorganization, the fund continues to have substantially the same investment objective and continues to be managed consistent with the predecessor fund’s investment philosophy and process. The reorganization also resulted in a reduction in the fund’s annual operating expenses, both before and after fee waivers. As a result of this transition, this annual report covers the six-month period that ended August 31, 2020.
The reporting period has been witness to a number of historic events that have significantly impacted lives on both a personal and economic level, and was also one of the most volatile investing environments on record. Up until the last week of February 2020, the outlook for bond yields was favorable. U.S. stock market performance was also strong, with the longest bull market cycle in history continuing and major equity indices hitting new highs. But the rapid spread of COVID-19 around the world brought many economies to an abrupt halt. A new record was set for the fastest U.S. market decline, with the S&P 500® Index, a bellwether for the overall U.S. stock market, dropping 30% over just 22 trading days in late February and early March. Against this backdrop, the U.S. Federal Reserve cut interest rates to near zero in March and the bond market generally saw prices rise as yields on government and U.S. Treasury securities pushed down to historic lows. (Bond yields and bond prices typically move in opposite directions.) Conversely, demand for municipal bonds fell sharply amid downgrade concerns, creating spikes in yields and reductions in liquidity, before later stabilizing. By the end of the reporting period, however, stocks had rebounded. Major equity indices reached new highs in August, while bond yields remained relatively low. In this environment, the broad U.S. municipal bond market, as measured by the Bloomberg Barclays General Municipal Bond Index, returned 0.2% during the six-month reporting period ended August 31, 2020, and the Bloomberg Barclays Municipal High Yield Index returned -4.2%. In contrast, the S&P 500® Index returned 19.6% during the same period.
This varied performance of asset classes is a good reminder of the importance of diversification. At Charles Schwab Investment Management, we believe that an allocation to strategies like the Schwab High Yield Municipal Bond Fund can add diversification while providing tax-exempt income and helping to manage overall portfolio volatility.
Thank you for investing with Charles Schwab Investment Management. For more information about the Schwab High Yield Municipal Bond Fund, please continue reading this report. In addition, you can find further details about this fund by visiting our website at www.schwabfunds.com. We are also happy to hear from you at 1-877-824-5615.
Sincerely,
“ On August 10, 2020, following shareholder approval, the Wasmer Schroeder High Yield Municipal Fund (the predecessor fund) was reorganized into the Schwab High Yield Municipal Bond Fund.”
Past performance cannot guarantee future results.
Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.
Management views may have changed since the report date.
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
The Investment Environment
For the six-month reporting period ended August 31, 2020, most fixed-income markets generated positive returns. Global equity markets experienced historic volatility driven by the COVID-19 pandemic that wreaked havoc on the global economy, prompting dramatic social distancing restrictions, shuttering businesses, and resulting in a new record for the fastest U.S. market decline with the S&P 500® Index, a bellwether for the overall U.S. stock market, dropping 30% in just 22 trading days in late February and early March. As investors flocked to the perceived safety of U.S. Treasury securities, bond prices soared as yields were driven to historically low levels. (Bond yields and bond prices typically move in opposite directions.) By the end of March, governments and central banks around the world had begun passing extensive emergency rescue and fiscal stimulus measures in an effort to support their economies. While the extraordinary response prompted a rally in global equity markets from their March lows, particularly in the U.S., historic volatility remained. Demand for muni bonds fell sharply, creating spikes in yields and reductions in liquidity. By the end of the reporting period, several major market indices exceeded their February highs and most bond prices had resumed their upward momentum. For the reporting period, the Bloomberg Barclays Municipal High Yield Index returned -4.17% and the Bloomberg Barclays Municipal Bond Index returned 0.19%.
Prior to the onset of the COVID-19 pandemic, the U.S. economy, despite ongoing trade tensions with China, maintained steady growth in its record eleventh year of expansion, albeit at a slowing pace. However, amid the fallout of the COVID-19 pandemic, the U.S. entered recessionary territory with record speed. U.S. GDP fell steeply, declining 5.0% and 31.4% for the first and second quarters of 2020, respectively, with the second quarter representing the largest contraction in U.S. GDP since 1947. Unemployment remained at record lows through February before a record number of unemployment claims in March resulted in the largest monthly increase in the U.S. unemployment rate since January 1975. In April, this record was broken again when unemployment skyrocketed, rising to the highest level since the Great Depression. Unemployment declined in May through August, dropping below double digits in August. Consumer confidence, which remained solid through February, also fell steeply in March and April. By June, consumer confidence recovered before falling again in July and August. Inflation crept up slightly in January and February, before retreating in March, April, and May, with April seeing the largest monthly decline since December 2008. Inflation began to climb again in June.
Yield Advantage of Munis over Treasuries: For Five-Year bonds; Tax Brackets Shown are the Highest Applicable
Index figures assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized. Past performance is not an indication of future results.
For index definitions, please see the Glossary.
Data source: Bloomberg L.P.
Nothing in this report represents a recommendation of a security by the investment adviser.
Management views may have changed since the report date.
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
The Investment Environment (continued)
Many central banks around the world, including the U.S. Federal Reserve (Fed), reduced their policy rates over the reporting period, while others maintained low—and for some international central banks, negative—interest rates. In the U.S., after enacting three interest rate cuts in the second half of 2019 and as the economic implications of the COVID-19 pandemic grew, the Fed cut interest rates during the reporting period—by 0.50% in early March and by 1.00% in mid-March—resulting in a federal funds rate of 0.00% to 0.25%. In addition, the Fed also announced extensive emergency measures to support the economy in light of the COVID-19 pandemic, including large purchases of U.S. Treasuries and other securities to support smooth market function, facilitating the flow of credit to municipalities, new financing for employers, consumers, and businesses, and the establishment of facilities to support credit to businesses and consumers alike. In August, the Fed announced that it was shifting its interest rate policy approach to potentially allow inflation to rise above its 2% target for periods of time even in times of rising employment.
As the implications of the COVID-19 pandemic grew, state and local governments experienced a sharp and sudden drop in economic activity and an increase in expenses amid stay-at-home orders and business shutdowns and muni bond demand fell steeply. Credit markets began stabilizing in May and as investors began to look for yield in the exceedingly low interest rate environment, high-quality muni bonds were in particular demand. While new issuance was curtailed in March, muni bond issuers have taken advantage of low interest rates to increase issuance as demand has risen. Amid historically low interest rates, demand for high yield bonds rose through late February. As market volatility worsened in late February, the performance of high-yield bonds declined sharply. High yield bonds continued to experience volatility through May before beginning to recover through the end of the reporting period.
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
 | Kenneth Salinger, CFA, Vice President and Head of Tax-Exempt Bond Strategies, leads the portfolio management team for Schwab’s tax-free bond funds. He also has overall responsibility for all aspects of the management of the fund. Prior to joining CSIM in 2008, Mr. Salinger was a senior portfolio manager at Wells Capital Management, working on a team that managed municipal bond assets. He worked at American Century Investments from 1992 to 2006, where he was a vice president and senior portfolio manager, responsible for daily management of a number of national and state specific municipal bond funds. Mr. Salinger has worked in fixed-income asset management since 1994. |
 | Jason D. Diefenthaler, Senior Portfolio Manager and Head of Wasmer Municipal Bond Strategies supporting the Wasmer Schroeder Strategies, is responsible for the day-to-day co-management of the fund. Prior to joining CSIM in 2020, Mr. Diefenthaler was the director of tax-exempt portfolio management at Wasmer, Schroeder & Company, LLC and was responsible for the day-to-day co-management of the predecessor fund since its inception in 2014. Previous to that role, he was a credit analyst for taxable and tax-exempt strategies at Wasmer, Schroeder & Company, LLC |
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund as of August 31, 2020
The Schwab High Yield Municipal Bond Fund (the fund) seeks to generate interest income that is not subject to federal income tax. To pursue its goal, the fund invests at least 80% of its net assets (including, for this purpose, any borrowings for investment purposed) in municipal securities (munis), including debt obligations of U.S. states, territories, counties, cities, political subdivisions, government agencies and instrumentalities that pay interest not subject to regular federal income tax. Some munis in which the fund invests may pay interest that is not exempt from the federal alternative minimum tax. For more information on the fund’s investment objective and principal investment strategies, please see the fund’s prospectus.
The fund is the successor to the Wasmer Schroeder High Yield Municipal Fund (predecessor fund) as a result of the reorganization of the predecessor fund into the fund on August 10, 2020.
Market Highlights. In a period that saw volatility due to the COVID-19 pandemic, muni fixed-income markets generated mixed returns for the six-month reporting period ended August 31, 2020, with most muni bonds higher but high-yield muni bonds lower. The reporting period began as the rapidly expanding COVID-19 pandemic drove a selloff that sent major equity indices into bear-market territory in record time and drove bond prices down. In response, the Federal Reserve (Fed) enacted two emergency rate cuts—by 0.50% in early March and by 1.00% in mid-March—and announced extensive emergency measures to support the economy in light of the COVID-19 pandemic, including massive purchases of U.S. Treasuries and other securities to support smooth market functioning. By late March, bonds began recovering and maintained mostly upward momentum through the end of the reporting period.
As the implications of the COVID-19 pandemic grew, state and local governments experienced a sharp and sudden drop in revenue and an increase in expenses amid stay-at-home orders and business shutdowns, and muni bond demand fell steeply. Credit markets began stabilizing in May and demand for muni bonds—particularly high-quality muni bonds—rose for most of the remainder of the reporting period. High-yield muni bonds lagged, given the revenue challenges faced by many state and local governments, transit authorities, hospitals, airports, and other issuers. As the reporting period progressed, high-yield muni bonds began gaining investor interest, outperforming high-quality muni bonds.
Performance. The fund returned -5.47%* for the six-month period ended August 31, 2020, compared with the Bloomberg Barclays Municipal High Yield Index (the comparative index), which returned -4.17%.
Positioning and Strategies. Amid the market volatility over the reporting period, the fund experienced significant outflows, particularly in March and April, that dragged on fund performance. In addition, in connection with the reorganization, the predecessor fund sold below investment-grade bonds and purchased investment-grade bonds primarily in March through May—a period of significant volatility, particularly for below investment-grade bonds. In some cases, this resulted in selling bonds that had declined in value and replacing them with bonds that had not declined to a similar extent. In addition, many of the investment-grade bonds purchased during the period were in sectors that proved more susceptible to the COVID-19 pandemic. The fund’s portfolio managers continue to monitor credit developments to assess risk and opportunity.
| * | Total return for the report period above differs from the return in the Financial Highlights. The total return presented above is calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semiannual reports. |
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Performance and Fund Facts as of August 31, 2020
Portfolio Composition % of investments
These charts show two different views of the fund’s portfolio: by type of security and credit quality of the security.
By Security Type
| Weighted Average Maturity1 | 6.4 Yrs |
| Weighted Average Duration1 | 7.1 Yrs |
Management views and portfolio holdings may have changed since the report date.
| 1 | See Glossary for definitions of maturity and duration. |
| 2 | Bloomberg Barclays Index Rating: Based on the middle rating of Moody’s, S&P and Fitch; when a rating from only two agencies is available, the lower is used; when only one agency rates a bond, that rating is used. In cases where explicit bond level ratings may not be available, other sources may be used to classify securities by credit quality. Source: Bloomberg Index Service Ltd. |
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Performance and Fund Facts as of August 31, 2020 (continued)
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 may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabfunds.com/schwabfunds_prospectus.
Performance of Hypothetical $10,000 Investment (March 31, 2014 – August 31, 2020)1,2,3
Average Annual Returns1,2,3
| Fund and Inception Date | 6 months | 1 Year | 5 Years | Since Inception |
| Fund: Schwab High Yield Municipal Bond Fund (3/31/14)4 | -5.47% 5 | -1.92% | 3.96% | 5.16% |
| Bloomberg Barclays Municipal High Yield Index | -4.17% | 0.96% | 6.42% | 5.81% |
| Bloomberg Barclays Municipal Bond Index | 0.19% | 3.24% | 3.99% | 4.13% |
| Fund Category: Morningstar High Yield Muni 6 | -3.91% | -0.10% | 4.43% | N/A |
| Fund Expense Ratios7: Net 0.60%; Gross 0.73% |
| 30-Day SEC Yield1,2 | 2.66% |
| 30-Day SEC Yield-No Waiver1,8 | 2.34% |
| Taxable Equivalent Yield9 | 4.50% |
| 12-Month Distribution Yield1,2 | 3.74% |
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. Performance data quoted does not reflect the non-recurring redemption fee of 1% that may be charged if shares are sold or exchanged within 60 days of the purchase date. If these fees were reflected, the performance quoted would be lower.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
| 1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. |
| 2 | Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the total return/yield may have been lower. |
| 3 | Effective August 10, 2020, the Wasmer Schroeder High Yield Municipal Fund (the predecessor fund) was reorganized into the Schwab High Yield Municipal Bond Fund. The performance and financial history prior to August 10, 2020 are that of the predecessor fund. |
| 4 | Inception date is that of the predecessor fund. |
| 5 | Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semiannual reports. |
| 6 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 7 | As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, refer to the Financial Highlights section of the financial statements. |
| 8 | Yield if fund expenses had not been partially absorbed by the investment adviser and its affiliates. |
| 9 | Taxable equivalent yield assumes a federal regular income tax rate of 40.80%, which includes a Medicare surcharge rate of 3.8%. Your tax rate may be different. |
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you may incur two types of costs: (1) transaction costs, such as redemption fees; and (2) ongoing costs, including management fees, transfer agent fees, and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning March 1, 2020 and held through August 31, 2020.
Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in a fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as redemption fees. Therefore, the hypothetical return lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | Expense Ratio
(Annualized)1 | Beginning
Account Value
at 3/1/20 | Ending
Account Value
(Net of Expenses)
at 8/31/20 | Expenses Paid
During Period
3/1/20-8/31/202 |
| Schwab High Yield Municipal Bond Fund | | | | |
| Actual Return | 0.73% | $1,000.00 | $ 944.40 | $3.57 |
| Hypothetical 5% Return | 0.73% | $1,000.00 | $1,021.43 | $3.71 |
| 1 | Based on the most recent six-month expense ratio. Effective August 10, 2020, the Wasmer Schroeder High Yield Municipal Fund was reorganized into the Schwab High Yield Municipal Bond Fund and the annual operating expense ratio was reduced to 0.60%. If the fund expense change had been in place throughout the most recent fiscal half-year the expenses paid during the period under the actual return and hypothetical 5% return example would have been $2.93 and $3.05 (see financial note 4). |
| 2 | Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by 365 days of the fiscal year. |
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Financial Statements
Financial Highlights
| | 3/1/20–
8/31/201 | 3/1/19–
2/29/20 | 3/1/18–
2/28/19 | 3/1/17–
2/28/18 | 3/1/16–
2/28/17 | 3/1/15–
2/29/16 |
| Per-Share Data |
| Net asset value at beginning of period | $11.25 | $10.61 | $10.63 | $10.44 | $10.76 | $10.78 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)2 | 0.20 | 0.38 | 0.40 | 0.36 | 0.40 | 0.51 |
| Net realized and unrealized gains (losses) | (0.83) | 0.73 | 0.01 | 0.20 | (0.22) | (0.02) |
| Total from investment operations | (0.63) | 1.11 | 0.41 | 0.56 | 0.18 | 0.49 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.20) | (0.38) | (0.41) | (0.35) | (0.40) | (0.51) |
| Distributions from net realized gains | — | (0.09) | (0.02) | (0.02) | (0.10) | — |
| Total distributions | (0.20) | (0.47) | (0.43) | (0.37) | (0.50) | (0.51) |
| Redemption fees2 | 0.00 3 | 0.00 3 | 0.00 3 | 0.00 3 | 0.00 3 | 0.00 3 |
| Net asset value at end of period | $10.42 | $11.25 | $10.61 | $10.63 | $10.44 | $10.76 |
| Total return | (5.56%) 4 | 10.71% | 3.93% | 5.42% | 1.65% | 4.67% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses | 0.73% 5,6 | 0.75% | 0.75% | 0.92% | 0.97% | 1.00% |
| Gross operating expenses | 0.90% 5 | 0.78% | 0.76% | 0.88% | 0.95% | 1.01% |
| Net investment income (loss) | 3.81% 5 | 3.48% | 3.80% | 3.30% | 3.74% | 4.78% |
| Portfolio turnover rate | 36% 4 | 27% | 18% | 11% | 32% | 27% |
| Net assets, end of period (x 1,000,000) | $66 | $83 | $77 | $118 | $99 | $102 |
| |
1
Effective August 10, 2020, the Wasmer Schroeder High Yield Municipal Fund was reorganized into the Schwab High Yield Municipal Bond Fund, which commenced operations on that day. The Financial Highlights above present the shares of the Wasmer Schroeder High Yield Municipal Fund prior to the acquisition date of August 10, 2020 and Schwab High Yield Municipal Bond Fund subsequent to that date. (Note that the Wasmer Schroeder High Yield Municipal Fund had a fiscal year ending the last day of February whereas the Schwab High Yield Municipal Bond Fund has a fiscal year ending August 31). Certain prior numbers have been restated to meet current year presentation.
2
Calculated based on the average shares outstanding during the period.
3
Amount is less than $0.01 per share.
4
Not annualized
5
Annualized
6
Effective August 10, 2020, the net operating expense limitation was lowered from 0.75% to 0.60%. The ratio presented for the period ended August 31, 2020 is a blended ratio (see financial note 4 for additional information).
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Portfolio Holdings as of August 31, 2020
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. Prior to May 31, 2020, the fund filed Form N-Q for the first and third quarters of each fiscal year. The fund’s Form N-PORT Part F and Form N-Q are available on the SEC’s website at www.sec.gov. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of each calendar quarter on the fund’s website at www.schwabfunds.com/schwabfunds_prospectus.
For fixed-rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued). For variable-rate obligations, the rate shown is the rate as of the report date based on each security’s rate reset date. The reference rate and spread used is shown parenthetically in the security description, if available; if not, the reference rate is described in a footnote. The maturity date shown for all the securities is the final legal maturity.
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Fixed-Rate Obligations 97.5% of net assets |
| ALABAMA 0.8% |
| Jefferson Cnty Sales Tax |
| Limited Obligation Refunding RB Series 2017 | 4.00% | | 09/15/36 (a) | 500,000 | 566,035 |
| ARIZONA 2.4% |
| Arizona IDA |
| RB (Great Lakes Senior Living Communites) Series 2019A | 4.50% | | 01/01/49 (a) | 1,000,000 | 820,160 |
| La Paz Cnty Industrial Development Auth |
| Education Facility Lease RB (Harmony Public Schools) Series 2018A | 5.00% | | 02/15/38 (a) | 700,000 | 785,078 |
| | | | | | 1,605,238 |
| CALIFORNIA 5.3% |
| California Health Facilities Financing Auth |
| RB (Sutter Health) Series 2013A | 5.00% | | 08/15/52 (a) | 500,000 | 551,275 |
| California Statewide Communities Development Auth |
| RB (Loma Linda Univ Medical Center) Series 2014A | 5.25% | | 12/01/29 (a) | 500,000 | 554,435 |
| Golden State Tobacco Securitization Corp |
| Tobacco Settlement Bonds Series 2018A1 | 3.50% | | 06/01/36 (a) | 405,000 | 411,039 |
| Los Angeles USD |
| GO Bonds Series 2020 RYQ | 4.00% | | 07/01/44 (a) | 665,000 | 787,360 |
| Palomar Health |
| Refunding RB Series 2016 | 5.00% | | 11/01/28 (a) | 1,000,000 | 1,200,840 |
| | | | | | 3,504,949 |
| COLORADO 3.4% |
| Colorado Health Facilities Auth |
| RB (CommonSpirit Health) Series 2019A2 | 4.00% | | 08/01/49 (a) | 500,000 | 551,220 |
| Denver Convention Center Auth |
| Convention Ctr Hotel Sr Refunding RB Series 2016 | 5.00% | | 12/01/33 (a) | 750,000 | 806,872 |
| Park Creek Metropolitan Dist |
| Sr LT RB Series 2019A | 4.00% | | 12/01/34 (a)(b) | 745,000 | 895,751 |
| | | | | | 2,253,843 |
| CONNECTICUT 0.6% |
| Connecticut |
| GO Refunding Bonds Series 2018B | 5.00% | | 04/15/28 | 315,000 | 406,520 |
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| FLORIDA 10.3% |
| Broward Cnty SD |
| COP Series 2020A | 5.00% | | 07/01/30 | 500,000 | 669,065 |
| Capital Trust Agency |
| Sr RB (Provision CARES Proton Therapy Center, Orlando) Series 2018A | 7.50% | | 06/01/48 (a) | 1,000,000 | 432,710 |
| Florida Gulf Coast Univ |
| Improvement Refunding RB Series 2017A | 5.00% | | 08/01/26 | 435,000 | 516,963 |
| Florida Higher Educational Facilities Financing Auth |
| Educational Facilities Refunding RB (Nova Southeastern Univ) Series 2016 | 5.00% | | 04/01/30 (a) | 750,000 | 868,725 |
| Halifax Hospital Medical Center |
| Hospital Revenue & Refunding Bonds Series 2016 | 5.00% | | 06/01/36 (a) | 500,000 | 575,480 |
| Lee Cnty Industrial Development Auth | | | |
| Healthcare Facilities Improvement RB (Shell Point Alliance) Series 2019 | 5.00% | | 11/15/49 (a) | 1,000,000 | 1,080,300 |
| Healthcare Facilities RB (Cypress Cove) Series 2014 | 4.50% | | 10/01/32 (a) | 500,000 | 519,230 |
| Healthcare Facilities RB (Cypress Cove) Series 2014 | 5.50% | | 10/01/47 (a) | 750,000 | 791,287 |
| Miami-Dade Cnty Educational Facilities Auth |
| Revenue & Refunding Bonds (Univ of Miami) Series 2015A | 5.00% | | 04/01/30 (a) | 500,000 | 571,965 |
| Tampa |
| Revenue & Refunding Bonds (Univ of Tampa) Series 2020A | 4.00% | | 04/01/50 (a) | 500,000 | 560,985 |
| Village Community Development Dist #13 |
| Special Assessment RB Series 2019 | 3.38% | | 05/01/34 (a) | 250,000 | 255,373 |
| | | | | | 6,842,083 |
| GEORGIA 0.7% |
| Cobb Cnty-Kennestone Hospital Auth |
| Revenue Anticipation Refunding Certificates Series 2012 | 5.00% | | 04/01/28 (a) | 415,000 | 457,164 |
| GUAM 1.2% |
| Guam Power Auth |
| RB Series 2012A | 5.00% | | 10/01/34 (a) | 250,000 | 263,248 |
| Guam Waterworks Auth |
| Water & Wastewater System Refunding RB Series 2014A | 5.00% | | 07/01/35 (a) | 500,000 | 553,920 |
| | | | | | 817,168 |
| ILLINOIS 10.0% |
| Chicago | | | |
| 2nd Lien Water RB Series 2014 | 5.00% | | 11/01/44 (a) | 500,000 | 551,550 |
| Refunding GO Bonds Series 2003B | 5.00% | | 01/01/25 | 1,285,000 | 1,422,109 |
| Refunding GO Bonds Series 2003B | 5.50% | | 01/01/39 (a) | 1,025,000 | 1,113,755 |
| Chicago Board of Education |
| ULT GO Bonds Series 2018D | 5.00% | | 12/01/46 (a) | 500,000 | 549,150 |
| Illinois | | | |
| GO Bonds Series 2013 | 5.25% | | 07/01/30 (a) | 1,020,000 | 1,086,892 |
| GO Bonds Series 2013 | 5.00% | | 02/01/39 (a) | 1,000,000 | 1,048,320 |
| Illinois Regional Transportation Auth |
| GO Bonds Series 2018B | 5.00% | | 06/01/24 | 250,000 | 288,215 |
| Illinois Toll Highway Auth |
| Toll Highway Sr RB Series 2017A | 5.00% | | 01/01/42 (a) | 450,000 | 543,397 |
| | | | | | 6,603,388 |
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| LOUISIANA 3.3% |
| Louisiana Local Government Environmental Facilities & Community Development Auth |
| Refunding RB (Westlake Chemical Corp) Series 2017 | 3.50% | | 11/01/32 (a) | 1,000,000 | 1,068,580 |
| Louisiana Public Facilities Auth | | | |
| Refunding RB (Tulane Univ) Series 2020A | 4.00% | | 04/01/50 (a) | 500,000 | 568,730 |
| Revenue & Refunding Bonds (Oschsner Clinic) Series 2017 | 5.00% | | 05/15/42 (a) | 500,000 | 576,695 |
| | | | | | 2,214,005 |
| MAINE 1.0% |
| Maine Health & Educational Facilites Auth |
| RB (Eastern Maine Medical Center) Series 2013 | 5.00% | | 07/01/24 (a) | 630,000 | 690,701 |
| MARYLAND 1.7% |
| Maryland Economic Development Corp |
| Refunding RB (Transportation Facilities) Series 2017A | 5.00% | | 06/01/35 (a) | 1,000,000 | 1,127,540 |
| MASSACHUSETTS 1.6% |
| Massachusetts Development Finance Agency | | | |
| RB (Boston Medical Center) Series 2015D | 5.00% | | 07/01/44 (a) | 500,000 | 552,800 |
| RB (Merrimack College) Series 2014 | 5.13% | | 07/01/44 (a) | 500,000 | 518,810 |
| | | | | | 1,071,610 |
| MICHIGAN 3.8% |
| Detroit SD |
| ULT Refunding RB Series 2020A | 5.00% | | 05/01/39 (a)(b) | 500,000 | 631,485 |
| Flint Hospital Building Auth |
| Building Revenue & Refunding Bonds (Hurley Medical Center) Series 2020 | 4.00% | | 07/01/38 (a) | 500,000 | 526,495 |
| Great Lakes Water Auth |
| 2nd Lien Water System Refunding RB Series 2016D | 5.00% | | 07/01/30 (a) | 500,000 | 612,285 |
| Michigan Finance Auth |
| Local Gov’t Loan Program RB (Detroit Public Lighting Auth) Series 2014B | 5.00% | | 07/01/44 (a) | 700,000 | 738,451 |
| | | | | | 2,508,716 |
| MINNESOTA 8.4% |
| South Central Minnesota Multi-Cnty Hsg & Redevelopment Auth | | | |
| Pooled Housing Development RB Series 1993 | 4.31% | | 02/01/00 (c) | 15,000 | 8,250 |
| Pooled Housing Development RB Series 1993 | 4.66% | | 02/01/02 (c) | 30,000 | 16,500 |
| Pooled Housing Development RB Series 1993 | 4.87% | | 02/01/05 (c) | 20,000 | 11,000 |
| Pooled Housing Development RB Series 1993 | 4.90% | | 02/01/06 (c) | 20,000 | 11,000 |
| Pooled Housing Development RB Series 1993 | 4.98% | | 02/01/07 (c) | 65,000 | 35,750 |
| Pooled Housing Development RB Series 1993 | 5.00% | | 02/01/08 (c) | 10,000 | 5,500 |
| Pooled Housing Development RB Series 1993 | 5.18% | | 02/01/17 (c) | 450,000 | 247,500 |
| Pooled Housing Development RB Series 1993 | 5.52% | | 02/01/25 (c) | 9,500,000 | 5,225,000 |
| | | | | | 5,560,500 |
| MISSOURI 1.8% |
| Southeast Missouri State Univ |
| System Facilities Refunding RB Series 2020 | 5.00% | | 04/01/30 | 500,000 | 635,740 |
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| St Louis |
| Airport Revenue & Refunding Bonds (St Louis Lambert) Series 2019C | 5.00% | | 07/01/32 (a) | 425,000 | 530,634 |
| | | | | | 1,166,374 |
| NEVADA 1.1% |
| Clark Cnty SD |
| Refunding GO Bonds Series 2017C | 5.00% | | 06/15/31 (a) | 580,000 | 717,419 |
| NEW JERSEY 7.2% |
| New Jersey Economic Development Auth | | | |
| School Facilities Construction Bonds 2014 Series UU | 5.00% | | 06/15/34 (a) | 1,000,000 | 1,091,060 |
| School Facilities Construction Bonds 2015 Series XX | 5.00% | | 06/15/25 | 500,000 | 577,650 |
| New Jersey Transportation Trust Fund Auth |
| Transportation RB Series 2015AA | 4.63% | | 06/15/30 (a) | 1,000,000 | 1,097,060 |
| South Jersey Transportation Auth |
| Transportation System Refunding RB Series 2014A | 5.00% | | 11/01/39 (a) | 1,000,000 | 1,094,800 |
| Tobacco Settlement Financing Corp |
| Tobacco Settlement Bonds Series 2018A | 5.25% | | 06/01/46 (a) | 750,000 | 888,615 |
| | | | | | 4,749,185 |
| NEW YORK 8.5% |
| Metropolitan Transportation Auth |
| Transportation RB Series 2020C1 | 5.25% | | 11/15/55 (a) | 500,000 | 562,830 |
| Nassau Cnty |
| GO Bonds Series 2017B | 5.00% | | 04/01/31 (a) | 450,000 | 547,650 |
| New York City |
| GO Bonds Fiscal 2020 Series C1 | 5.00% | | 08/01/30 | 695,000 | 922,953 |
| New York City Transitional Finance Auth |
| Future Tax Secured Sub Bonds Fiscal 2017 Series E1 | 5.00% | | 02/01/43 (a) | 500,000 | 594,765 |
| New York City Trust for Cultural Resources |
| Refunding RB (Lincoln Ctr for the Performing Arts) Series 2020A | 4.00% | | 12/01/34 (a) | 1,000,000 | 1,178,040 |
| New York Liberty Development Corp |
| RB (Goldman Sachs Headquarters) Series 2005 | 5.25% | | 10/01/35 | 500,000 | 697,805 |
| New York State Dormitory Auth |
| RB (NYU Langone Hospitals) Series 2020A | 4.00% | | 07/01/53 (a) | 500,000 | 562,275 |
| New York State Thruway Auth |
| General RB Series N | 3.00% | | 01/01/50 (a) | 565,000 | 590,578 |
| | | | | | 5,656,896 |
| OHIO 1.4% |
| Franklin Cnty Convention Facilities Auth |
| Hotel RB (Greater Columbus Convention Ctr Hotel Expansion) Series 2019 | 5.00% | | 12/01/51 (a) | 1,000,000 | 961,320 |
| OKLAHOMA 0.9% |
| Oklahoma Development Finance Auth |
| Health System RB (OU Medicine) Series 2018B | 5.50% | | 08/15/57 (a) | 500,000 | 585,910 |
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| OREGON 0.8% |
| Clackamas Cnty Hospital Facility Auth |
| Sr Living RB (Willamette View) Series 2017A | 5.00% | | 11/15/52 (a) | 500,000 | 523,345 |
| PENNSYLVANIA 3.6% |
| Commonwealth Financing Auth |
| Tobacco Settlement RB Series 2018 | 5.00% | | 06/01/35 (a) | 500,000 | 618,775 |
| Lancaster Cnty Hospital Auth |
| RB (St Anne’s Retirement Community) Series 2020 | 5.00% | | 03/01/40 (a) | 500,000 | 517,135 |
| Pennsylvania State Turnpike Commission |
| Sub RB Series 2017B1 | 5.25% | | 06/01/47 (a) | 250,000 | 294,353 |
| Philadelphia |
| Water & Wastewater RB Series 2019B | 5.00% | | 11/01/54 (a) | 500,000 | 621,140 |
| Philadelphia SD |
| GO Bonds Series 2018A | 5.00% | | 09/01/31 (a)(b) | 250,000 | 316,032 |
| | | | | | 2,367,435 |
| PUERTO RICO 2.7% |
| Puerto Rico Aqueduct & Sewer Auth |
| Sr Lien RB Series A | 5.00% | | 07/01/28 (a)(b) | 270,000 | 271,798 |
| Puerto Rico Highway & Transportation Auth |
| Transportation RB Series A | 4.75% | | 07/01/38 (a)(b) | 500,000 | 503,260 |
| Puerto Rico Pwr Auth | | | |
| Power Refunding RB Series PP | 5.00% | | 07/01/22 (a)(b) | 305,000 | 306,476 |
| Power Refunding RB Series UU | 5.00% | | 07/01/24 (a)(b) | 200,000 | 201,416 |
| Puerto Rico Sales Tax Financing Corp |
| Restructured Sales Tax Bonds Series 2019 | 5.00% | | 07/01/58 (a) | 501,000 | 534,918 |
| | | | | | 1,817,868 |
| SOUTH CAROLINA 0.9% |
| South Carolina Public Service Auth |
| Revenue & Refunding Bonds Series 2016B | 5.00% | | 12/01/56 (a) | 500,000 | 583,820 |
| TENNESSEE 1.7% |
| Chattanooga Health Educational & Housing Facilities Board |
| Student Housing Refunding RB (CDFI Univ of Tennessee at Chattanooga) Series 2015 | 5.00% | | 10/01/29 (a) | 500,000 | 520,435 |
| Memphis |
| GO Refunding Bonds Series 2020 | 4.00% | | 05/01/34 (a) | 500,000 | 597,505 |
| | | | | | 1,117,940 |
| TEXAS 4.3% |
| Central Texas Regional Mobility Auth |
| Senior Lien Refunding RB Series 2016 | 5.00% | | 01/01/46 (a) | 750,000 | 860,910 |
| New Hope Cultural Educational Facilities Corp |
| Education RB (Beta Academy) Series 2019A | 5.00% | | 08/15/49 (a) | 500,000 | 514,785 |
| North Texas Tollway Auth |
| 1st Tier System Revenue & Refunding Bonds Series 2017A | 5.00% | | 01/01/43 (a) | 500,000 | 610,195 |
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
Issuer
Type of Security, Series | Rate | | Maturity | Face
Amount ($) | Value ($) |
| Texas Transportation Commission |
| Central Texas Turnpike System 2nd Tier Refunding RB Series 2015C | 5.00% | | 08/15/34 (a) | 750,000 | 849,847 |
| | | | | | 2,835,737 |
| WASHINGTON 2.7% |
| Greater Wenatchee Regional Events Center Public Facilities Dist | | | |
| Limited Sales Tax RB Series 2012A | 4.50% | | 09/01/22 | 190,000 | 189,426 |
| Limited Sales Tax RB Series 2012A | 5.25% | | 09/01/32 (a) | 500,000 | 501,125 |
| Skagit Cnty Hospital Dist | | | |
| Refunding RB (Skagit Valley Hospital) Series 2013A | 4.00% | | 12/01/26 | 500,000 | 563,580 |
| Refunding RB (Skagit Valley Hospital) Series 2013A | 5.00% | | 12/01/37 (a) | 500,000 | 535,535 |
| | | | | | 1,789,666 |
| WEST VIRGINIA 1.1% |
| Marshall Univ |
| Improvement Refunding RB Series 2020A | 4.00% | | 05/01/50 (a)(b) | 635,000 | 717,639 |
| WISCONSIN 4.3% |
| Wisconsin Health & Educational Facilities Auth | | | |
| RB (Hmong American Peace Academy) Series 2020 | 5.00% | | 03/15/50 (a) | 1,075,000 | 1,256,428 |
| RB (St Camillus Health System) Series 2019A | 5.00% | | 11/01/54 (a) | 500,000 | 516,675 |
| RB (Woodland Hill Sr Housing) Series 2014 | 5.25% | | 12/01/49 (a) | 500,000 | 517,440 |
| Wisconsin Public Finance Auth |
| Education RB (North Carolina Leadership Academy) Sereies 2019A | 5.00% | | 06/15/49 (a) | 520,000 | 529,895 |
| | | | | | 2,820,438 |
| Total Fixed-Rate Obligations |
| (Cost $62,220,988) | | | | | 64,640,452 |
|
| Variable-Rate Obligations 1.4% of net assets |
| NEW YORK 0.9% |
| New York City |
| GO Bonds Fiscal 2018 Series E-5 | 0.02% | | 03/01/48 (a)(b)(d) | 590,000 | 590,000 |
| OHIO 0.5% |
| Ohio |
| Hospital RB (Cleveland Clinic Health System) Series 2019E | 0.02% | | 01/01/52 (a)(b)(d) | 320,000 | 320,000 |
| Total Variable-Rate Obligations |
| (Cost $910,000) | | | | | 910,000 |
| (a) | The effective maturity may be shorter than the final maturity shown because the security is subject to a put, demand or call feature. |
| (b) | Credit-enhanced or liquidity-enhanced. |
| (c) | The securities are in default and are not making full payments of interest and principal when due. The securities are making semiannual distributions of variable amounts of cash flow. These amounts are determined by factors including, but not limited to, property occupancy levels, per unit rental rates and capital reinvestment expenses. The coupon accrual rate utilized by the Fund is reviewed at least semiannually and will generally be based on interest payments received historically along with any known changes in the previously mentioned factors. |
| (d) | VRDN is a municipal security which allows holders to sell their security through a put or tender feature, at par value plus accrued interest. The interest rate resets on a periodic basis, the majority of which are weekly but may be daily or monthly. Unless a reference rate and spread is shown parenthetically, the Remarketing Agent, generally a dealer, determines the interest rate for the security at each interest rate reset date. The rate is typically based on the SIFMA Municipal Swap Index. |
| | |
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Portfolio Holdings as of August 31, 2020 (continued)
| COP — | Certificate of participation |
| GO — | General obligation |
| IDA — | Industrial development agency/authority |
| LT — | Limited tax |
| RB — | Revenue bond |
| SD — | School district |
| SIFMA — | Securities Industry and Financial Markets Association. The SIFMA Municipal Swap Index is a market index comprised of high-grade 7-day tax-exempt Variable Rate Demand Obligations with certain characteristics. |
| ULT — | Unlimited tax |
| USD — | Unified school district |
| VRDN — | Variable rate demand note |
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2020 (see financial note 2(a) for additional information):
| Description | Quoted Prices in
Active Markets for
Identical Assets
(Level 1) | Other Significant
Observable Inputs
(Level 2) | Significant
Unobservable Inputs
(Level 3) | Total | |
| Assets | | | | | |
| Fixed-Rate Obligations1 | $— | $64,640,452 | $— | $64,640,452 | |
| Variable-Rate Obligations1 | — | 910,000 | — | 910,000 | |
| Total | $— | $65,550,452 | $— | $65,550,452 | |
| 1 | As categorized in Portfolio Holdings. |
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Statement of Assets and Liabilities
As of August 31, 2020
| Assets |
| Investments in unaffiliated issuers, at value (cost $63,130,988) | | $65,550,452 |
| Cash | | 12,095 |
| Receivables: | | |
| Investments sold | | 3,072,783 |
| Interest | | 666,401 |
| Fund shares sold | + | 1,275 |
| Total assets | | 69,303,006 |
| Liabilities |
| Payables: | | |
| Investments bought | | 2,262,720 |
| Investment adviser and administrator fees | | 5,764 |
| Fund shares redeemed | | 603,056 |
| Distributions to shareholders | | 112,447 |
| Accrued expenses | + | 28,522 |
| Total liabilities | | 3,012,509 |
| Net Assets |
| Total assets | | 69,303,006 |
| Total liabilities | – | 3,012,509 |
| Net assets | | $66,290,497 |
| Net Assets by Source | | |
| Capital received from investors | | 64,848,194 |
| Total distributable earnings | | 1,442,303 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $66,290,497 | | 6,358,911 | | $10.42 |
| | | | | |
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Statement of Operations
| | For the period
March 1, 2020
through
August 31, 2020* | For the period
March 1, 2019
through
February 29, 2020* |
| Investment Income | |
| Interest | | $1,578,669 | $3,398,061 |
| Expenses | |
| Investment adviser fees | | — | 401,518 |
| Investment adviser and administrator fees | | 213,708 | — |
| Administrator and portfolio accounting fees | | — | 94,625 |
| Professional fees | | 24,522 | 29,031 |
| Transfer agent fees | | 14,327 | 31,214 |
| Registration fees | | 22,958 | 21,739 |
| Independent trustees’ fees | | 3,725 | 15,871 |
| Shareholder reports | | 7,684 | 9,450 |
| Chief Compliance Officer fees | | — | 12,538 |
| Portfolio accounting fees | | 12,184 | — |
| Custodian fees | | 2,992 | 4,124 |
| Interest expense | | — | 1,168 |
| Other expenses | + | 12,161 | 8,874 |
| Total expenses | | 314,261 | 630,152 |
| Expense reduction by predecessor fund’s investment adviser | | 43,803 | 27,876 |
| Expense reduction by CSIM and its affiliates | – | 15,001 | — |
| Net expenses | – | 255,457 | 602,276 |
| Net investment income | | 1,323,212 | 2,795,785 |
| Realized and Unrealized Gains (Losses) | |
| Net realized gains on investments | | (1,391,261) | 1,094,859 |
| Net change in unrealized appreciation (depreciation) on investments | + | (4,700,465) | 4,387,184 |
| Net realized and unrealized gains (losses) | | (6,091,726) | 5,482,043 |
| Net Increase (decrease) in net assets from operations | | ($4,768,514) | $8,277,828 |
| * | Effective August 10, 2020, the Wasmer Schroeder High Yield Municipal Fund was reorganized into the Schwab High Yield Municipal Bond Fund, which commenced operations on that day. The Statement of Operations above includes the fiscal year ended February 29, 2020 of the Wasmer Schroeder High Yield Municipal Fund (see financial note 1 for additional information). Certain prior numbers have been restated to meet current year presentation. |
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Statement of Changes in Net Assets
For the current and prior report periods
| Operations | | |
| | 3/1/20-8/31/20* | 3/1/19-2/29/20* | 3/1/18-2/28/19* |
| Net investment income | | $1,323,212 | $2,795,785 | $3,559,900 |
| Net realized gains (losses) | | (1,391,261) | 1,094,859 | (71,016) |
| Net change in unrealized appreciation (depreciation) | + | (4,700,465) | 4,387,184 | (95,072) |
| Increase (decrease) in net assets from operations | | (4,768,514) | 8,277,828 | 3,393,812 |
| Distributions to Shareholders | | |
| Total distributions | | ($1,323,194) | ($3,474,037) | ($3,653,001) |
| Transactions in Fund Shares | | | | | |
| | | 3/1/20-8/31/20 | 3/1/19-2/29/20 | 3/1/18-2/28/19 |
| | | SHARES | VALUE | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 446,549 | $4,447,398 | 2,501,038 | $27,367,682 | 1,479,222 | $15,725,827 |
| Shares reinvested | | 49,033 | 500,310 | 133,301 | 1,463,537 | 186,138 | 1,974,812 |
| Shares redeemed1 | + | (1,508,684) | (15,534,493) | (2,521,340) | (27,695,273) | (5,539,114) | (58,711,717) |
| Net transactions in fund shares | | (1,013,102) | ($10,586,785) | 112,999 | $1,135,946 | (3,873,754) | ($41,011,078) |
| Shares Outstanding and Net Assets | | | | | |
| | | 3/1/20-8/31/20 | 3/1/19-2/29/20 | 3/1/18-2/28/19 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 7,372,013 | $82,968,990 | 7,259,014 | $77,029,253 | 11,132,768 | $118,299,520 |
| Total increase (decrease) | + | (1,013,102) | (16,678,493) | 112,999 | 5,939,737 | (3,873,754) | (41,270,267) |
| End of period | | 6,358,911 | $66,290,497 | 7,372,013 | $82,968,990 | 7,259,014 | $77,029,253 |
| * | Effective August 10, 2020, the Wasmer Schroeder High Yield Municipal Fund was reorganized into the Schwab High Yield Municipal Bond Fund, which commenced operations on that day. The Statement of Changes above presents the fiscal years ended February 29, 2020 and February 28, 2019 of the Wasmer Schroeder High Yield Municipal Fund (see financial note 1 for additional information). |
| 1 | Net of redemption fees amounting to $21,209, $2,945 and $1,670, respectively, are included in the periods ended August 31, 2020, February 29, 2020 and February 28, 2019, respectively (see financial note 6 for additional information). |
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
1. Business Structure of the Fund:
Schwab High Yield Municipal Bond Fund is a series of Schwab Investments (the Trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the fund discussed in this report, which is highlighted:
| SCHWAB INVESTMENTS (ORGANIZED OCTOBER 26, 1990) |
| Schwab High Yield Municipal Bond Fund | Schwab U.S. Aggregate Bond Index Fund |
| Schwab Tax-Free Bond Fund | Schwab Short-Term Bond Index Fund |
| Schwab California Tax-Free Bond Fund | Schwab 1000 Index® Fund |
| Schwab Treasury Inflation Protected Securities Index Fund | Schwab Global Real Estate Fund |
Effective August 10, 2020, the Wasmer Schroder High Yield Municipal Fund (Predecessor Fund) was reorganized into the Schwab High Yield Municipal Bond Fund. Shareholders of the Predecessor Fund received equivalent shares of the Schwab High Yield Municipal Bond Fund. Although the Schwab High Yield Municipal Bond Fund commenced its operations on August 10, 2020, it inherited the performance history of the Predecessor Fund. Effective August 31, 2020, the fund changed its fiscal year end from the last day in February to August 31st.
The fund offers one share class. Share are bought and sold (subject to a redemption fee, see financial note 6) closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the fund’s Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
The fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, the fund may also keep certain assets in segregated accounts, as required by securities law.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the fund uses in its preparation of financial statements. The fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
(a) Security Valuation:
Under procedures approved by the Board, the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. Among other things, these procedures allow the fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value. Prior to August 10, 2020, the Board of Trustees of the Predecessor Fund delegated day-to-day valuation issues to a Valuation Committee of the Advisors Series Trust which was comprised of representatives from U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services.
The fund values the securities in its portfolio every business day. The fund uses the following policies to value various types of securities:
• Bonds and notes: Fixed income investments are generally valued using an evaluated price at the mid-point of the bid/ask spread provided by an approved, independent pricing service (mid-price). To determine the evaluated mid-price, a pricing service may use a variety of techniques and inputs. Techniques may include, but are not limited to, spread models that calculate an investment-specific price relative to a benchmark or yield curve models that establish a price based on yields of comparable bonds along a range of maturities. Inputs differ by valuation approach and technique, as appropriate, and examples of inputs may include, but are not limited to, interest rates, market conditions, comparable bonds, market trades, projected cash flows, credit reviews and issuer news. Prior to August 10, 2020, the fixed-income investments in the Predecessor Fund were valued at their bid prices furnished by an independent pricing service and upon reorganization adopted the pricing policies of Schwab Investments, which is to value at the mid-price.
• Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, the fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value determinations in good faith
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Financial Notes (continued)
2. Significant Accounting Policies (continued):
in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. Due to the subjective and variable nature of fair value pricing, there can be no assurance that the fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the valuation procedures.
• Short-term securities (60 days or less to maturity): Securities with remaining maturities of 60 days or less are generally valued at an evaluated price; however, such securities may be valued at their amortized cost if it approximates the security’s fair value.
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 techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If the fund determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
• Level 1—quoted prices in active markets for identical securities—Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities. Investments in mutual funds are valued daily at their NAVs, which are classified as Level 1 prices, without consideration to the classification level of the specific investments held by an underlying fund.
• Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)—Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations.
• Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments)—Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the fund in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the fund’s investments as of August 31, 2020 are disclosed in the Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Delayed Delivery Transactions and When-Issued Securities: During the period, the fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the fund’s Portfolio Holdings. The fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security.
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Financial Notes (continued)
2. Significant Accounting Policies (continued):
With respect to purchase commitments, the fund identifies securities as segregated in its record with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract’s terms, or if the issuer does not issue the securities due to political, economic, or other factors.
(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.
(d) Investment Income:
Interest income is recorded as it accrues. If a fund buys a debt security at a discount (less than face value) or a premium (more than face value), it amortizes premiums and accretes discounts from the purchase settlement date up to maturity. The fund then increases (in the case of discounts) or reduces (in the case of premiums) the income it records from the security. Certain securities may be callable (meaning that the issuer has the option to pay it off before its maturity date). The fund amortizes the premium and accretes the discount on each callable security to the security’s maturity date, except when the purchase price is higher than the call price at the security’s call date (in which case the premium is amortized to the call date).
(e) Expenses:
Expenses that are specific to the fund are charged directly to the fund. Expenses that are common to more than one fund in the trusts generally are allocated among those funds in proportion to their average daily net assets.
(f) Distributions to Shareholders:
The fund declares and pays its dividends on the last business day of every month, based on its determination of net investment income. The fund makes distributions from net realized capital gains, if any, once a year.
(g) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
(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.
(i) Indemnification:
Under the fund’s organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business the fund enters into contracts with its vendors and others that provide general indemnifications. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the fund. However, based on experience, the fund expects the risk of loss attributable to these arrangements to be remote.
(j) Recent Accounting Standards:
In March 2020, the FASB issued Accounting Standards Update “Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848)” (ASU 2020-04), which provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank-offered based reference rates at the end of 2021. The temporary relief provided is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. At this time, management believes the adoption of ASU 2020-04 will not have a material impact to the financial statements.
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Financial Notes (continued)
3. Risk Factors:
The fund invests mainly in high-yield government or municipal obligations, and other debt securities. These investments may involve certain risks, as discussed in the fund’s prospectus, including, but not limited to, those described below:
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.
Management Risk. As an actively managed mutual fund, the fund is subject to the risk that its investment adviser will select investments or allocate assets in a manner that could cause the fund to underperform or otherwise not meet its investment objective. The fund’s investment adviser applies its own investment techniques and risk analyses in making investment decisions for the fund, but there can be no guarantee that they will produce the desired results.
Investment Style Risk. The fund is not designed to offer substantial capital appreciation. In exchange for its goal of capital preservation, the fund may offer lower long-term performance than stock investments or certain other types of bond investments. Some of the fund’s investments may have greater risks than investments in some taxable bonds.
Interest Rate Risk. Interest rates rise and fall over time. As with any investment whose yield reflects current interest rates, the fund’s yield will change over time. During periods when interest rates are low, the fund’s yield (and total return) also may be low. Changes in interest rates also may affect the fund’s share price: a rise in interest rates generally causes the fund’s share price to fall. The longer the fund’s portfolio duration, the more sensitive to interest rate movements its share price is likely to be. Also, a change in a central bank’s monetary policy or economic conditions, among other things, may result in a change in interest rates, which could have sudden and unpredictable effects on the markets and significantly impact the value of fixed-income securities in which the fund invests.
Credit Risk. A decline in the credit quality of an issuer, guarantor or liquidity provider of a portfolio investment or a counterparty could cause the fund to lose money or underperform. The fund could lose money if, due to a decline in the credit quality, the issuer or guarantor or liquidity provider of a portfolio investment or a counterparty fails to make, or is perceived as being unable or unwilling to make, timely principal or interest payments or otherwise honor its obligations.
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.
High-Yield Risk. High-yield securities and unrated securities of similar credit quality (junk bonds) are subject to greater levels of credit and liquidity risks, and may be more volatile than higher-rated securities. High-yield securities are considered predominately speculative with respect to the issuer’s continuing ability to make principal and interest payments.
Prepayment and Extension Risk. Certain fixed-income securities are subject to the risk that the securities may be paid off earlier or later than expected, especially during periods of falling or rising interest rates, respectively. Prepayments of obligations could cause the fund to forgo future interest income on the portion of the security’s principal repaid early and force the fund to reinvest that money at the lower prevailing interest rates. Extensions of obligations could cause the fund to exhibit additional volatility and hold securities paying lower-than-market rates of interest. Either case could hurt the fund’s performance.
Municipal Securities Risk. The fund primarily invests in municipal securities whose interest, in the opinion of the issuers’ counsel, is exempt from federal income tax. Neither the investment adviser nor the fund guarantees that this opinion is correct, and there is no assurance that the Internal Revenue Service (IRS) will agree with such counsel’s opinion. If certain types of investments the fund buys as tax-exempt are later ruled to be taxable, a portion of thefund’s income could be taxable. To the extent that the fund invests in municipal securities from a given state or geographic region, its share price and performance could be affected by local, state and regional factors, including erosion of the tax base and changes in the economic climate. In addition, many municipal securities are issued to finance specific projects (especially those relating to education, health care, transportation and utilities) and conditions in those sectors can affect the overall municipal market. National governmental actions, such as the elimination of tax-exempt status or the reduction of financial support to municipalities, also could affect performance. Municipalities continue to experience difficulties in the current economic and political environment.
Derivatives Risk. The fund’s use of futures 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, credit risk, leverage risk, market risk and management risk, are discussed elsewhere in this section. The fund’s use of futures is also subject to lack of availability risk, valuation risk, correlation risk and tax risk. Lack of availability risk is the risk that suitable futures transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular future may be valued
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Financial Notes (continued)
3. Risk Factors (continued):
incorrectly. Correlation risk is the risk that changes in the value of the future may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of futures may cause the fund to realize higher amounts of short-term capital gains. The fund’s use of derivatives could reduce the fund’s performance, increase the fund’s volatility, and cause the fund to lose more than the initial amount invested. However, these risks are less severe when the fund uses derivatives for hedging rather than to enhance the fund’s returns or as a substitute for a position or security. The 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.
Distressed or Defaulted Securities Risk. Investments in defaulted securities and obligations of distressed issuers, including securities that are, or may be, involved in reorganizations or other financial restructurings, either out of court or in bankruptcy, involve substantial risks in addition to the risks of investing in high-yield debt securities. The fund’s share price may decline if the reorganization or restructuring is not completed as anticipated. The fund will generally not receive interest payments on the distressed securities and may incur costs to protect its investment. Repayment of defaulted securities and obligations of distressed issuers is subject to significant uncertainties. The fund could lose its entire investment in such securities.
Rule 144A Securities Risk. The market for Rule 144A securities typically is less active than the market for publicly-traded securities. Rule 144A securities carry the risk that the liquidity of these securities may become impaired, making it more difficult for the fund to sell these bonds.
Zero Coupon Securities Risk. While interest payments are not made on such securities, holders of such securities are deemed to have received income annually, notwithstanding that cash may not be received currently. Some of these securities may be subject to substantially greater price fluctuations during periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds.
Taxable Investments Risk. The fund may invest a portion of its assets in securities that generate income that is not exempt from federal income tax and in securities whose interest is subject to the AMT. These investments could generate taxable income for shareholders.
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:
Investment Adviser
Effective August 10, 2020, CSIM, a wholly owned subsidiary of The Charles Schwab Corporation, serves as the fund’s investment adviser and administrator pursuant to the Advisory Agreement between CSIM and the trust. Prior to August 10, 2020, Wasmer, Schroeder & Company, LLC (Wasmer Schroeder) provided the Predecessor Fund with investment management services under an investment advisory agreement.
Effective August 10, 2020, for its advisory services to the fund, CSIM is entitled to receive an annual fee, payable monthly, equal to 0.50% of the fund’s average daily net assets. Prior to August 10, 2020, Wasmer Schroeder was entitled to receive an annual fee, payable monthly, equal to 0.50% of the Predecessor Fund’s average daily net assets.
Expense Limitation
Although these agreements specify certain fees for these services, effective August 10, 2020, CSIM and its affiliates have made an additional agreement with the fund, for so long as CSIM serves as the investment adviser to the fund, which may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes and certain non-routine expenses (expense limitation) to 0.60%. Prior to August 10, 2020, Wasmer Schroeder agreed contractually to limit the Predecessor Fund’s total annual fund operating expenses charged, excluding interest, taxes and certain non-routine expenses to 0.75%. Wasmer Schroeder could request recoupment of previously waived fees and paid expenses from the Predecessor Fund for 36 months from the date they were paid. Effective August 10, 2020, Wasmer Schroeder’s ability to recoup was terminated.
Prior to August 10, 2020, the officers of the Advisors Series Trust and the Chief Compliance Officer were also employees of the U.S. Bank Global Fund Services. Fees paid by the Predecessor Fund to U.S. Bank Global Fund Services for these services for the fiscal year ended February 29, 2020 and period ended August 31, 2020 are disclosed in the Statement of Operations.
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Financial Notes (continued)
4. Affiliates and Affiliated Transactions (continued):
Interfund Transactions
Effective August 10, 2020, the fund may engage in transactions with certain other funds in the Fund Complex (for definition refer to Trustees and Officers section) when permitted by applicable law. When one fund is seeking to sell a security that another is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs. This practice is limited to funds that share the same investment adviser, trustees and/or officers. For the period ended August 31, 2020, the fund had no direct security transactions with other funds in the Fund Complex.
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission (SEC), effective August 10, 2020, the fund may enter into interfund borrowing and lending transactions with other funds in the Fund Complex (for definition refer to Trustees and Officers section). All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The fund had no interfund borrowing or lending activity during the period.
5. Board of Trustees:
The Board may include people who are officers and/or directors of CSIM or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of these interested persons for their services as trustees, but it did pay non-interested persons (independent trustees), as noted on the fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.
6. Redemption Fees:
The Fund charges a 1.00% redemption fee on shares sold or exchanged within 60 days of the original purchase date. Such amounts are netted against the redemption proceeds on the Statement of Changes in Net Assets. The redemption fee was suspended from April 13, 2020 through August 10, 2020. Amounts prior to August 10, 2020 were charged by the Predecessor Fund. The fees charged during the current and prior periods were:
Current Period
(3/1/20-8/31/20) | Prior Period
(3/1/19-2/29/20) | Prior Period
(3/1/18-2/28/19) |
| $21,209 | $2,945 | $1,670 |
7. Borrowing from Banks:
Prior to August 10, 2020, the Predecessor Fund had an unsecured line of credit with the Predecessor Fund’s custodian in the amount of $10,000,000. The Predecessor Fund did not draw on this line of credit during the period from March 1, 2020 through August 10, 2020.
Effective August 28, 2020, the fund became a participant with other funds in the Fund Complex in a joint, unsecured, uncommitted $500 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, which was scheduled to mature on November 27, 2020. However, on October 1, 2020, the Uncommitted Credit Facility was amended to run for a new 364 day period with a line of credit of $400 million, maturing on September 30, 2021. Under the terms of the Uncommitted Credit Facility, the fund pays interest on the amount it borrows. There were no borrowings from the line of credit during the period.
Subsequent to the end of the period, on October 1, 2020, the fund became a participant with other funds in the Fund Complex in a joint, syndicated, committed $850 million line of credit (the Syndicated Credit Facility), maturing on September 30, 2021. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by the fund, the fund pays a commitment fee of 0.15% per annum on its proportionate share of the unused portion of the Syndicated Credit Facility.
The fund also has access to custodian overdraft facilities. The fund may have utilized the overdraft facility and incurred an interest expense, which is disclosed on the fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Financial Notes (continued)
8. Purchases and Sales/Maturities of Investment Securities:
For the period ended August 31, 2020, purchases and sales/maturities of securities (excluding short-term obligations) were as follows:
| | Purchases
of Securities | Sales/Maturities
of Securities |
| Schwab High Yield Municipal Bond Fund | $24,117,400 | $31,811,163 |
9. Federal Income Taxes:
As of August 31, 2020, the tax basis cost of the fund’s investments and gross unrealized appreciation and depreciation were as follows:
| | Schwab
High Yield
Municipal Bond Fund |
| Tax cost | $63,130,988 |
| Gross unrealized appreciation | $3,613,187 |
| Gross unrealized depreciation | (1,193,723) |
| Net unrealized appreciation (depreciation) | $2,419,464 |
As of August 31, 2020, the components of distributable earnings on a tax basis were as follows:
| | Schwab
High Yield
Municipal Bond Fund |
| Undistributed tax-exempt income | $131,949 |
| Undistributed ordinary income | 48,978 |
| Undistributed long-term capital gains | 345,620 |
| Net unrealized appreciation (depreciation) on investments | 2,419,464 |
| Total | $2,946,011 |
There are no differences between book basis and tax basis unrealized appreciation or unrealized depreciation.
Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of August 31, 2020, the fund had capital loss carryforwards of $1,391,261 with no expiration available to offset future net capital gains.
The tax basis components of distributions paid during the current and prior fiscal years ended were as follows:
| Current Period Distributions | |
| Tax-exempt income | $1,323,194 |
| Year ended February 29, 2020 distributions** | |
| Tax-exempt income | $2,788,936 |
| Ordinary income | 83,594 |
| Long-term capital gains | 601,506 |
| Year ended February 28, 2019 distributions** | |
| Tax-exempt income | 3,508,006 |
| Ordinary income | 73,036 |
| Long-term capital gains | 120,855 |
** These distributions represent those of the Predecessor Fund.
Permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments will have no impact on net assets or the results of operations.
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Financial Notes (continued)
9. Federal Income Taxes (continued):
As of August 31, 2020, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the fund, and has determined that no provision for income tax is required in the fund’s financial statements. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the fiscal year ended August 31, 2020, the fund did not incur any interest or penalties.
10. Independent Registered Public Accounting Firm:
Prior to the close of business on August 10, 2020, the Predecessor Fund was a separate series of an unaffiliated investment company and its financial statements were audited by a different independent registered public accounting firm (the Prior Auditor). The Prior Auditor’s reports on the financial statements of the Predecessor Fund for the past two fiscal years, the years ended February 28, 2019 and February 29, 2020, did not contain an adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles.
11. Subsequent Events:
Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Schwab Investments and Shareholders of Schwab High Yield Municipal Bond Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the portfolio holdings, of Schwab High Yield Municipal Bond Fund (the “Fund”), a fund of Schwab Investments, as of August 31, 2020, and the related statement of operations, statement of changes in net assets, and the financial highlights for the period from March 1, 2020 through August 31, 2020, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of August 31, 2020, and the results of its operations, the changes in its net assets, and the financial highlights for the period from March 1, 2020 through August 31, 2020 in conformity with accounting principles generally accepted in the United States of America. The statement of operations for the period from March 1, 2019 through February 29, 2020, the statement of changes in net assets for the two years in the period ended February 29, 2020, and the financial highlights for each of the five years in the period ended February 29, 2020 were audited by other auditors, whose report, dated April 29, 2020, expressed an unqualified opinion on such financial statements and financial highlights.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2020, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides a reasonable basis for our opinion.
Deloitte & Touche LLP
Denver, Colorado
October 19, 2020
We have served as the auditor of one or more investment companies in the Schwab Funds Complex since 2020.
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Other Federal Tax Information (unaudited)
Under section 852(b)(5) of the Internal Revenue Code, the fund designates 100.0% of the distributions paid from net investment income as exempt-interest dividends for the fiscal year ended August 31, 2020.
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Investment Advisory Agreement Approval
The Investment Company Act of 1940, as amended (the 1940 Act), requires that initial approval of, as well as 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 (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.
Initial Approval of Investment Advisory Agreement
The Board of Trustees (the Board or the Trustees, as appropriate) called and held a meeting on February 24, 2020, in part, for the purpose of considering whether to appoint Charles Schwab Investment Management, Inc. (CSIM) as investment adviser to the Schwab High Yield Municipal Bond Fund (the Fund) under the investment advisory and administration agreement between Schwab Investments (the Trust) and CSIM (the Agreement). In preparation for the meeting, the Board requested and reviewed a wide variety of materials provided by CSIM and considered information that the Board receives from CSIM throughout the year, including information about CSIM’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. The Board also received data provided by an independent provider of investment company data. In recognition of the fact that the Fund had not yet commenced operations, the Board also considered information provided by CSIM in connection with the Board’s consideration of approval of the investment advisory agreement and administration with respect to the other funds within the Trust. The Board also took into account the detailed information about other funds within the Trust that the Board reviews during the course of each year, including information that relates to those funds’ operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. The Independent Trustees received advice from Independent Trustees’ legal counsel, including with respect to the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees participated in question and answer sessions with representatives of CSIM and met in executive session outside the presence of Fund management.
CSIM informed the Board that the Fund would serve as a “shell” fund for the reorganization of Wasmer Schroeder High Yield Municipal Fund (the Target Fund) and it was further noted that this Fund would commence operations on the same day that the reorganization was effected.
The Board, including a majority of the Independent Trustees, approved the Agreement with respect to the Fund. The Board’s approval was based on consideration and evaluation of a variety of specific factors discussed at this meeting, including:
| 1. | the nature, extent and quality of the services to be provided to the Fund under the Agreement, including the resources of CSIM and its affiliates to be dedicated to the Fund; |
| 2. | the investment performance of the Target Fund and how it compared to that of certain other comparable mutual funds and benchmark data; |
| 3. | the Fund’s estimated expenses and how those expenses compared to those of certain other similar mutual funds; |
| 4. | the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to management of other funds, including both direct and indirect benefits accruing to CSIM 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 to be provided by CSIM to the Fund and the resources of CSIM and its affiliates will dedicate to the Fund. In this regard, the Trustees evaluated, among other things, CSIM’s experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Board considered that members of the Target Fund’s Portfolio Management and Research teams are expected to join CSIM. The Trustees also considered information provided by CSIM relating to services and support to be 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, fund accounting and custody, and vendor and risk oversight. The Trustees also considered investments CSIM has made in its infrastructure, including modernizing CSIM’s technology and use of data, increasing expertise in key areas (including portfolio management and trade operations), and improving business continuity, cybersecurity, due diligence, risk management processes, and information security programs, which are designed to provide enhanced services to the Fund and its shareholders. The Trustees also considered Schwab’s wide range of products, services, and channel alternatives such as investment research tools and an array of account features that benefit Fund shareholders who are brokerage clients of Schwab. Finally, the Trustees also considered Schwab’s
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reputation as a full service brokerage firm and its overall financial condition, including Schwab’s ability to maintain consistent operations and service levels during recent periods of remote work and market volatility. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services to be provided by CSIM to the Fund and the resources of CSIM and its affiliates dedicated to the Fund supported approval of the Agreement with respect to the Fund.
Fund Performance. Since the Fund had not commenced operations and is expected to serve as a shell fund for the reorganization of the Target Fund, the Board considered performance of the Target Fund relative to a peer category of other mutual funds and applicable indices/benchmarks in determining whether to approve the Agreement. The Trustees also considered the risk profile for the Fund and the appropriateness of the benchmark that would be used to compare the performance of the Fund. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expected performance of the Fund supported approval 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 estimated net operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. The Board took into account the risk assumed by CSIM in the development of the Fund and the services to be provided as well as the competitive marketplace for financial products. The Trustees considered that CSIM had contractually agreed to limit certain expenses of the Fund to a specified level. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the Fund are reasonable and supported approval of the Agreement with respect to the Fund.
Profitability. With regard to profitability, the Trustees considered the expected compensation to be flowing to CSIM and its affiliates, directly or indirectly, and reviewed profitability on a pre-tax basis, without regard to distribution expenses. In this connection, the Trustees reviewed management’s profitability analyses. The Trustees also reviewed profitability of CSIM 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 fixed costs across the Fund and other funds in the complex. The Trustees also considered any other potential benefits to be derived by CSIM from its relationship with the Fund, such as whether, by virtue of its management of the Fund, CSIM obtains investment information or other research resources that aid it
in providing advisory services to other clients. The Trustees considered whether the expected compensation and profitability with respect to the Fund under the Agreement and other service agreements were reasonable and justified in light of the quality of all services to be rendered to the Fund by CSIM and its affiliates. The Trustees noted that CSIM continues to invest substantial sums in its business in order to provide enhanced research capabilities, services, and systems that would benefit the Fund. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the expected profitability of CSIM, albeit uncertain, is reasonable and supported approval of the Agreement with respect to the Fund.
Economies of Scale. Recognizing that the Fund had not yet commenced operations and had no assets, the Trustees considered the potential existence of any economies of scale and whether those could be expected to be 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 CSIM in CSIM’s infrastructure, including modernizing CSIM’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; (ii) expense cap by CSIM and its affiliates; and (iii) pricing the Fund to scale and keeping overall expenses down as the Fund grows. The Trustees acknowledged that CSIM will share any economies of scale with the Fund by investing in CSIM’s infrastructure, as discussed above, over time and that CSIM’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Fund may increase as a result of regulatory or other developments. The Trustees considered that CSIM had contractually agreed to an expense cap with respect to the Fund. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the Fund may be expected to obtain reasonable benefits from economies of scale if such economies develop.
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, unanimously approved 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 such services and expenses and such other matters as the Trustees have considered to be relevant in the exercise of their reasonable judgment.
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Trustees and Officers
The tables below give information about the trustees and officers of Schwab Investments, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 100 funds.
The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-877-824-5615.
| Independent Trustees |
Name, Year of Birth, and
Position(s) with the trust
(Terms of office, and
length of Time Served1) | Principal Occupations
During the Past Five Years | Number of
Portfolios in
Fund Complex
Overseen by
the Trustee | Other Directorships |
Robert W. Burns
1959
Trustee
(Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor (Jan. 2009 – present). Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) (investment management firm) and President, PIMCO Funds. | 100 | None |
John F. Cogan
1947
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust since 2010; Schwab Strategic Trust since 2016) | Senior Fellow (Oct. 1979 – present), The Hoover Institution at Stanford University (public policy think tank); Senior Fellow (2000 – present), Stanford Institute for Economic Policy Research; Professor of Public Policy (1994 – 2015), Stanford University. | 100 | Director (2005 – present), Gilead Sciences, Inc. |
Nancy F. Heller
1956
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services). | 100 | None |
Stephen Timothy Kochis
1946
Trustee
(Trustee of Schwab Strategic Trust since 2012; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | CEO and Owner (May 2012 – present), Kochis Global (wealth management consulting). | 100 | None |
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| Independent Trustees (continued) |
Name, Year of Birth, and
Position(s) with the trust
(Terms of office, and
length of Time Served1) | Principal Occupations
During the Past Five Years | Number of
Portfolios in
Fund Complex
Overseen by
the Trustee | Other Directorships |
David L. Mahoney
1954
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 100 | Director (2004 – present), Corcept Therapeutics Incorporated
Director (2009 – present), Adamas Pharmaceuticals, Inc.
Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff
1961
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 100 | None |
Kiran M. Patel
1948
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Retired. Executive Vice President and General Manager of Small Business Group (Dec. 2008 – Sept. 2013), Intuit, Inc. (financial software and services firm for consumers and small businesses). | 100 | Director (2008 – present), KLA-Tencor Corporation |
Kimberly S. Patmore
1956
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Consultant (2008 – present), Patmore Management Consulting (management consulting). | 100 | None |
Gerald B. Smith
1950
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2000; Laudus Trust since 2010; Schwab Strategic Trust since 2016) | Chairman, Chief Executive Officer and Founder (Mar. 1990 – present), Smith Graham & Co. (investment advisors). | 100 | Director (2012 – present), Eaton Corporation plc |
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| Interested Trustees |
Name, Year of Birth, and
Position(s) with the trust
(Terms of office, and
length of Time Served1) | Principal Occupations
During the Past Five Years | Number of
Portfolios in
Fund Complex
Overseen by
the Trustee | Other Directorships |
Walter W. Bettinger II2
1960
Chairman and Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Director, President and Chief Executive Officer (Oct. 2008 – present), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – present) and Director (May 2008 – present), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – present), Charles Schwab Investment Management, Inc. | 100 | Director (2008 – present), The Charles Schwab Corporation |
Jonathan de St. Paer2
1973
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Director (Apr. 2019 – present), President (Oct. 2018 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present), Charles Schwab Investment Advisory, Inc.; Trustee and Chief Executive Officer (Apr. 2019 – present) and President (Nov. 2018 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. | 100 | None |
Joseph R. Martinetto2
1962
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation. | 100 | None |
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| Officers of the Trust |
Name, Year of Birth, and Position(s) with the trust
(Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Jonathan de St. Paer
1973
President and Chief Executive Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Director (Apr. 2019 – present), President (Oct. 2018 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present), Charles Schwab Investment Advisory, Inc.; Trustee and Chief Executive Officer (Apr. 2019 – present) and President (Nov. 2018 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. |
Mark Fischer
1970
Treasurer and Chief Financial Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Treasurer and Chief Financial Officer (Jan. 2016 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Funds; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management. |
Omar Aguilar
1970
Senior Vice President and Chief Investment Officer – Equities and Multi-Asset Strategies
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer – Equities and Multi-Asset Strategies (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Head of the Portfolio Management Group and Vice President of Portfolio Management (May 2009 – Apr. 2011), Financial Engines, Inc. (investment management firm); Head of Quantitative Equity (July 2004 – Jan. 2009), ING Investment Management. |
Brett Wander
1961
Senior Vice President and Chief Investment Officer – Fixed Income
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer – Fixed Income (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm). |
David Lekich
1964
Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs
Vice President and Assistant Clerk, Laudus Funds
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President (Sept. 2011 – present) and Vice President (Mar. 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present) and Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (Apr. 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk (Apr. 2011 – present), Laudus Funds; Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs. |
Catherine MacGregor
1964
Vice President and Assistant Secretary, Schwab Funds and Schwab ETFs
Chief Legal Officer, Vice President and Clerk, Laudus Funds
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Vice President (July 2005 – present), Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary (Oct. 2009 – present), Schwab ETFs. |
| 1 | Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first. |
| 2 | Mr. Bettinger, Mr. de St. Paer and Mr. Martinetto are Interested Trustees. Mr. Bettinger is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc. (CSIM), the investment adviser for the trusts in the Fund Complex, is an employee and director of Charles Schwab & Co., Inc. (CS&Co), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust, and is a director of CSIM. Mr. de St. Paer is an Interested Trustee because he owns stock of CSC and is an employee and director of CSIM. Mr. Martinetto is an Interested Trustee because he owns stock of CSC and is an employee and director of CS&Co. |
| 3 | The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board. |
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agency discount notes Notes issued by federal agencies—known as Government Sponsored Enterprises, or GSEs—at a discount to their value at maturity. An agency discount note is a short-term investment offering a high degree of credit quality.
Alternative Minimum Tax (AMT) A federal income tax designed to limit the extent to which high-income taxpayers (including individuals, estates, trusts and corporations) can benefit from certain deductions and exemptions. For example, some types of income that are exempt from regular federal income tax are not exempt from the AMT.
asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset-backed securities Bond or other debt securities that represent ownership in a pool of assets such as credit card debt.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
average rate The average rate of interest paid annually by the fixed-income securities in a fund or portfolio.
Bloomberg Barclays Municipal High Yield Index An index that measures the performance of the non-investment grade and non-rated tax exempt bond market. Included in the index are securities from all 50 U.S. states and four other qualifying regions (Washington DC, Puerto Rico, Guam, and the Virgin Islands) that have par value of at least $3 million. The securities in the index must be denominated in U.S. dollars and must be fixed-rate. The index includes state and local general obligation bonds and revenue bonds. Both high yield (Ba1/BB+/BB+ or below) and non-rated securities are eligible to be included in the index. The index is rebalanced at each month-end. At each rebalancing, cash is effectively reinvested into the return universe for the following month.
Bloomberg Barclays Municipal Bond Index An index that measures the performance of U.S. tax exempt bonds that have par value of at least $7 million. The securities in the index must be denominated in U.S. dollars and must be fixed-rate. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds, and prerefunded bonds. The securities in the index must be rated investment grade. The index is rebalanced at each month-end. At each rebalancing, cash is effectively reinvested into the return universe for the following month.
bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
call An early repayment of a bond’s principal by the issuer, usually done because the issuer is able to refinance its bond debt at a lower rate.
call protection A term used in reference to a bond that cannot be called by the issuer before maturity, or at least for many years from the present date. A bond that offers call protection can more reliably be expected to provide a given yield over a given number of years than a bond that could be called (assuming both bonds are of the same credit quality).
capital gain, capital loss The difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the gain or loss is still “on paper” and is considered unrealized.
certificate of participation A municipal bond that is repaid from an annual budget appropriation rather than being backed by the full faith and credit of the issuer.
coupon, coupon rate The annual rate of interest paid until maturity by the issuer of a debt security.
credit-enhanced securities Securities that are backed by the credit of an entity other than the issuer (such as a financial institution). Credit enhancements, which can equal up to 100% of the security’s value, are designed to help lower the risk of default on a security and may also make the security more liquid.
credit quality The capacity of an issuer to make its interest and principal payments. See chart below.
credit risk The risk that a bond issuer may be unable to pay interest or principal to its bondholders.
Credit Ratings Most major bond issuers arrange with a recognized independent rating organization, such as Standard & Poor’s (S&P) or Moody’s Investors Service, to rate the creditworthiness of their bonds. The spectrum of these ratings is divided into two major categories: investment grade and below investment grade (sometimes called “junk bonds”). Bonds rated below investment grade range from those that are considered to have some vulnerability to default to those that appear on the brink of default or are in default. |
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discount rate The implied rate on a debt security that does not pay interest but is bought at a discount and redeemed at face value when it matures.
duration A measure of an individual bond’s sensitivity to interest rates, expressed in years. Calculations of duration generally take into account the bond’s yield, interest payments, maturity date and call features.
weighted average duration A measure of the duration of all bonds in a fund’s portfolio, also expressed in years, based on the market value weighted average duration of each bond in the portfolio.
expense ratio The amount that is taken from a mutual fund’s assets each year to cover the fund’s operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.
general obligation bonds Municipal bonds that are secured by the issuer’s full faith and credit, which typically is backed by the power of the issuer to levy taxes.
interest Payments to bondholders (usually made twice a year) as compensation for loaning the bond principal to the issuer.
interest rate risk The risk that a bond’s value will fluctuate if market interest rates change or are expected to change. Bond prices tend to move in the opposite direction of interest rates: when interest rates rise, bond prices tend to fall.
liquidity-enhanced security A security that when tendered is paid from funds advanced by an entity other than the issuer (such as a large financial institution). Liquidity enhancements are often used on variable-rate securities where the portfolio manager has an option to tender the securities prior to their final maturity.
market risk Those elements of risk that are common to all securities in an asset class, and therefore cannot be significantly reduced by diversification within the asset class. Also known as “systemic risk.”
maturity The maturity of a bond will generally be determined using a portfolio security’s final maturity date (date on which the final principal payment of a bond is scheduled to be paid); however, for securitized products, such as mortgage-backed securities and certain other asset-backed securities, maturity will be determined on an average life basis (weighted average time to receipt of all principal payments) by the investment adviser. Because pre-payment rates of individual mortgage pools vary widely, the average life of a particular pool cannot be predicted precisely. For securities with embedded demand features, such as puts or calls, either the demand date or the final maturity date will be used depending on interest rates, yields and other market conditions. The weighted average maturity (WAM) of a fund is dollar-weighted based upon the market value of a fund’s securities at the time of the calculation.
mortgage-backed securities Bond or other debt securities that represent ownership in a pool of mortgage loans.
muni, municipal bonds, municipal securities Debt securities issued by a state, its counties, municipalities, authorities and other subdivisions, or the territories and possessions of the United States and the District of Columbia, including their subdivisions, agencies and instrumentalities and corporations. These securities may be issued to
obtain money for various public purposes, including the construction of a wide range of public facilities such as airports, bridges, highways, housing, hospitals, mass transportation, public utilities, schools, streets, and water and sewer works.
net asset value (NAV) The value of one share of a mutual fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
prepayment risk The risk that a mortgage-backed security may be paid off early, typically because interest rates have fallen and the homeowners who hold the underlying mortgages have refinanced those mortgages at lower rates. In this type of situation, the investor who held the mortgage-backed security will usually have to settle for a lower rate when reinvesting the principal.
refunded bond A bond for which the principal and interest payments are secured or guaranteed by cash or U.S. government securities held in an escrow account.
restricted securities Securities that are subject to contractual restrictions on resale. These securities are often purchased in private placement transactions.
revenue bonds Municipal bonds that are issued to finance public works projects and are secured by revenue generated by the project (such as water and sewer fees) rather than the full faith and credit of the issuer.
S&P 500 Index An index that is designed to measure the performance of 500 leading publicly traded companies from a broad range of industries.
section 4(2)/144A securities Securities exempt from registration under Section 4(2) of the Securities Act of 1933. These securities may be sold only to qualified institutional buyers under Securities Act Rule 144A.
taxable equivalent yield The yield an investor would need to get from a taxable investment in order to match the yield paid by a given tax-exempt investment, once the effect of all applicable taxes is taken into account. For example, if your tax rate were 25%, a tax-exempt investment paying 4.5% would have a taxable equivalent yield for you of 6.0% (4.5% ÷ [1 – 0.25%] = 6.0%).
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
weighted average For mutual funds, an average that gives the same weight to each security as the security represents in the fund’s portfolio.
yield The income paid out by an investment, expressed as a percentage of the investment’s market value.
yield to maturity The annualized rate of return a bondholder could expect if the bond were held to maturity. In addition to interest payments, yield to maturity also factors in any difference between a bond’s current price and its principal amount, or face value.
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
PRIVACY NOTICE
THIS IS NOT PART OF THE SHAREHOLDER REPORT
A Commitment to Your Privacy
Your Privacy Is Not for Sale
We do not and will not sell your personal information to anyone, for any reason.
We are committed to protecting the privacy of information we maintain about you. Below are details about our commitment, including the types of information we collect and how we use and share that information. This Privacy Notice applies to you only if you are an individual who invests directly in the funds by placing orders through the funds’ transfer agent. If you place orders through your brokerage account at Charles Schwab & Co., Inc. or an account with another broker-dealer, investment advisor, 401(k) plan, employee benefit plan, administrator, bank or other financial intermediary, you are covered by the privacy policies of that financial institution and should consult those policies.
How We Collect Information About You
We collect personal information about you in a number of ways.
• APPLICATION AND REGISTRATION
INFORMATION.
We collect personal information from you when you open an account or utilize one of our services. We may also collect information about you from third parties such as consumer reporting agencies to verify your identity. The information we collect may include personal information, including your Social Security number, as well as details about your interests, investments and investment experience.
• TRANSACTION AND EXPERIENCE
INFORMATION.
Once your account has been opened, we collect and maintain personal information about your account activity, including your transactions, balances, positions and history. This information allows us to administer your account and provide the services you have requested.
• WEBSITE USAGE.
When you visit our websites, we may use devices known as “cookies,” graphic interchange format files (GIFs), or other similar web tools to enhance your web experience. These tools help us to recognize you, maintain your web session, and
provide a more personalized experience. To learn more, please go to www.schwab.com/privacy.
How We Share and Use Your Information
We provide access to information about you to our affiliated companies, outside companies and other third parties in certain limited circumstances, including:
• to help us process transactions for your account;
• when we use other companies to provide services for us, such as printing and mailing your account statements; and
• when we believe that disclosure is required or permitted under law (for example, to cooperate with regulators or law enforcement, resolve consumer disputes, perform credit/authentication checks, or for risk control).
State Laws
We will comply with state laws that apply to the disclosure or use of information about you.
Safeguarding Your Information — Security Is a Partnership
We take precautions to ensure the information we collect about you is protected and is accessed only by authorized individuals or organizations.
Companies we use to provide support services are not allowed to use information about our shareholders for their own purposes and are contractually obligated to maintain strict confidentiality. We limit their use of information to the performance of the specific services we have requested.
We restrict access to personal information by our employees and agents. Our employees are trained about privacy and are required to safeguard personal information.
We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.
Contact Us
To provide us with updated information, report suspected fraud or identity theft, or for any other questions, please call the number below.
Schwab Funds® direct investors: 1-800-407-0256
© 2020 Schwab Funds. All rights reserved.
Schwab High Yield Municipal Bond Fund | Annual Report
Schwab High Yield Municipal Bond Fund
Charles Schwab Investment Management
With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Charles Schwab Investment Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. The list below shows all currently available Schwab Funds®.
Investors should carefully consider information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-877-824-5615 for a prospectus for any Schwab Fund. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.
Proxy Voting Policies, Procedures and Results
A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab Funds’ website at www.schwabfunds.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds 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.schwabfunds.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.
Equity Funds
Schwab Core Equity Fund
Schwab Dividend Equity Fund
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund
Schwab Hedged Equity Fund
Schwab Health Care Fund
Schwab International Core Equity Fund
Schwab Fundamental US Large Company Index Fund
Schwab Fundamental US Small Company Index Fund
Schwab Fundamental International Large Company Index Fund
Schwab Fundamental International Small Company Index Fund
Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Fundamental Global Real Estate Index Fund
Schwab Global Real Estate Fund
Schwab S&P 500 Index Fund
Schwab 1000 Index® Fund
Schwab Small-Cap Index Fund®
Schwab Total Stock Market Index Fund®
Schwab U.S. Large-Cap Growth Index Fund
Schwab U.S. Large-Cap Value Index Fund
Schwab U.S. Mid-Cap Index Fund
Schwab International Index Fund®
Asset Allocation Funds
Schwab Balanced Fund
Schwab MarketTrack Portfolios®
Schwab Target Funds
Schwab Target Index Funds
Schwab Monthly Income Funds
Bond Funds
Schwab Treasury Inflation Protected Securities Index Fund
Schwab U.S. Aggregate Bond Index Fund
Schwab Short-Term Bond Index Fund
Schwab Tax-Free Bond Fund1
Schwab California Tax-Free Bond Fund1
Schwab High Yield Municipal Bond Fund
Schwab Money Funds2
Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.
Investment Adviser
Charles Schwab Investment Management, Inc.
211 Main Street, San Francisco, CA 94105
Funds
Schwab Funds
1-877-824-5615
© 2020 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
| ¹ | State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation. |
| ² | You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time. |
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Item 2: Code of Ethics.
| (a) | Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other persons who perform a similar function, regardless of whether these individuals are employed by Registrant or a third party. |
| (c) | During the period covered by the report, no amendments were made to the provisions of this code of ethics. |
| (d) | During the period covered by the report, Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics. |
| (f)(1) | Registrant has filed this code of ethics as an exhibit pursuant to Item 13(a)(1) of Form N-CSR. |
Item 3: Audit Committee Financial Expert.
Registrant’s Board of Trustees has determined that Kiran M. Patel and Kimberly S. Patmore, each currently serving on its audit, compliance and valuation committee, are each an “audit committee financial expert,” as such term is defined in Item 3 of Form N-CSR. Each member of Registrant’s audit, compliance and valuation committee is “independent” under the standards set forth in Item 3 of Form N-CSR.
The designation of each of Mr. Patel and Ms. Patmore as an “audit committee financial expert” pursuant to Item 3 of Form N-CSR does not (i) impose upon such individual any duties, obligations, or liability that are greater than the duties, obligations and liability imposed upon such individual as a member of Registrant’s audit, compliance and valuation committee or Board of Trustees in the absence of such designation; and (ii) affect the duties, obligations or liability of any other member of Registrant’s audit, compliance and valuation committee or Board of Trustees.
Item 4: Principal Accountant Fees and Services.
Registrant is composed of eight series. Six series have a fiscal year-end of August 31, whose annual financial statements are reported in Item 1, one series has a fiscal year-end of October 31, and one series has a fiscal year-end of the last day of February. Principal accountant fees disclosed in Items 4(a)-(d) and 4(g) include fees billed for services rendered to each of the eight operational series during 2020/2021 and the seven operational series during 2019/2020, based on their respective 2020/2021 and 2019/2020 fiscal years, as applicable.
The following table presents fees billed by the principal accountant in each of the last two fiscal years for the services rendered to the Funds:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) Audit Fees1 | | | (b) Audit-Related Fees | | | (c) Tax Fees2 | | | (d) All Other Fees | |
Fiscal Year
2020/2021 | | Fiscal Year
2019/2020 | | | Fiscal
Year
2020/2021 | | | Fiscal
Year
2019/2020 | | | Fiscal
Year
2020/2021 | | | Fiscal
Year
2019/2020 | | | Fiscal
Year
2020/2021 | | | Fiscal
Year
2019/2020 | |
$259,000 | | $ | 356,705 | | | $ | 0 | | | $ | 0 | | | $ | 24,800 | | | $ | 33,281 | | | $ | 0 | | | $ | 0 | |
| 1 | The nature of the services includes audit of the registrant’s annual financial statements and normally provided services in connection with regulatory filings for those fiscal years. |
| 2 | The nature of the services includes tax compliance, tax advice and tax planning. |
(e)(1) Registrant’s audit, compliance and valuation committee does not have pre-approval policies and procedures as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) There were no services described in each of paragraphs (b) through (d) above (including services required to be approved by Registrant’s audit, compliance and valuation committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by Registrant’s audit, compliance and valuation committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) Below are the aggregate non-audit fees billed in each of the last two fiscal years by Registrant’s principal accountant for services rendered to Registrant, to Registrant’s investment adviser, and to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant.
| | |
| 2020/2021: $4,263,876 | | 2019/2020: $33,281 |
(h) During the past fiscal year, all non-audit services provided by Registrant’s principal accountant to either Registrant’s investment adviser or to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant were pre-approved. Included in the audit, compliance and valuation committee’s pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Schedule of Investments.
The schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
| (a) | Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, Jonathan de St. Paer and Registrant’s Chief Financial Officer, Mark Fischer, 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 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Schwab Investments
| | |
| By: | | /s/ Jonathan de St. Paer |
| | Jonathan de St. Paer Chief Executive Officer |
| |
| Date: | | June 17, 2022 |
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/ Jonathan de St. Paer |
| | Jonathan de St. Paer Chief Executive Officer |
| |
| Date: | | June 17, 2022 |
| | |
| By: | | /s/ Mark Fischer |
| | Mark Fischer Chief Financial Officer |
| |
| Date: | | June 17, 2022 |
