Schwab Core Equity Fund (SWANX) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-07704

Schwab Capital Trust

(Exact name of registrant as specified in charter)

211 Main Street, San Francisco, California 94105

(Address of principal executive offices) (Zip code)

Marie Chandoha
Schwab Capital Trust
211 Main Street, San Francisco, California 94105
(Name and address of agent for service)

Registrant’s telephone number, including area code: (415) 636-7000

Date of fiscal year end: October 31

Date of reporting period: April 30, 2015

Item 1: Report(s) to Shareholders.

Semiannual report dated April 30, 2015, enclosed.

Schwab Equity Index Funds

Schwab^® S&P 500 Index Fund

Schwab 1000 Index^® Fund

Schwab Small-Cap Index Fund^®

Schwab Total Stock Market

Index Fund^®

Schwab International

Index Fund^®

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This wrapper is not part of the shareholder report.

Schwab Equity Index Funds

Semiannual Report

April 30, 2015

Schwab^® S&P 500 Index Fund

Schwab 1000 Index^® Fund

Schwab Small-Cap Index Fund^®

Schwab Total Stock Market

Index Fund^®

Schwab International

Index Fund^®

This page is intentionally left blank.

Five cost-efficient ways to tap into the power of

the stock market for long-term growth potential.

In This Report

Performance at a Glance	2
From the President	3
Fund Management	5
Performance and Fund Facts
Schwab S&P 500 Index Fund	6
Schwab 1000 Index Fund	7
Schwab Small-Cap Index Fund	8
Schwab Total Stock Market Index Fund	9
Schwab International Index Fund	10
Fund Expenses	12
Financial Statements and Condensed Portfolio Holdings
Schwab S&P 500 Index Fund	13
Schwab 1000 Index Fund	20
Schwab Small-Cap Index Fund	27
Schwab Total Stock Market Index Fund	34
Schwab International Index Fund	41
Financial Notes	49
Trustees and Officers	60
Glossary	64
EX-99.CERT
EX-99.906CERT

Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: Charles Schwab & Co., Inc. (Schwab).

The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS), which was developed by, and is the exclusive property of, MSCI and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab. The Industry classifications used in the schedules of Portfolio Holdings are sub-categories of Sector classifications.

Performance at a Glance

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment 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.csimfunds.com.

Total Return for the 6 Months Ended April 30, 2015
Schwab S&P 500 Index Fund (Ticker Symbol: SWPPX)	4.33%
S&P 500® Index	4.40%
Fund Category: Morningstar Large Blend	3.99%
Performance Details	page 6
Schwab 1000 Index Fund (Ticker Symbol: SNXFX)	4.54%
Schwab 1000 Index®	4.68%
Fund Category: Morningstar Large Blend	3.99%
Performance Details	page 7
Schwab Small-Cap Index Fund (Ticker Symbol: SWSSX)	4.63%
Russell 2000® Index	4.65%
Fund Category: Morningstar Small Blend	3.71%
Performance Details	page 8
Schwab Total Stock Market Index Fund (Ticker Symbol: SWTSX)	4.66%
Dow Jones U.S. Total Stock Market Index	4.73%
Fund Category: Morningstar Large Blend	3.99%
Performance Details	page 9
Schwab International Index Fund1 (Ticker Symbol: SWISX)	5.55%
MSCI EAFE® Index (Net)2	6.81%
Fund Category: Morningstar Foreign Large Blend	5.89%
Performance Details	page 10-11

Minimum Initial Investment³ $ 100

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.

Fund 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	The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
2	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
3	Please see the funds’ prospectus for further detail and eligibility requirements.

2 Schwab Equity Index Funds

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.

Dear Shareholder,

At Charles Schwab Investment Management, we design our investment products to serve as part of the foundation of an investor’s portfolio. Our Schwab Equity Index Funds track the performance of stock market indices constructed by industry-leading index providers, seeking returns by modeling their portfolios accordingly.

For the six-month reporting period ended April 30, 2015, many of the funds generated returns that were closely aligned with their respective indices and reflected a positive performance by both U.S. and international equities. However, timing differences in fair valuation of holdings detracted from relative performance for the Schwab International Index Fund. In the U.S., the Federal Reserve maintained historically low short-term interest rates, helping several indices reach record highs during the reporting period. The U.S. dollar remained strong, benefitting some small-cap companies due to their smaller percentage of sales revenue from overseas operations.

Internationally, many developed stock markets rallied in the second half of the reporting period. Geopolitical tensions in Russia subsided and Greece reached a point of relative stability, both of which helped the performance of international equities. Several central banks, including the European Central Bank and the Bank of Japan, increased measures aimed at stimulating economic growth and combatting deflation. These accommodative policies appeared to be helping in several regions, while also supporting the strength of the U.S. dollar. When the U.S. dollar rises against foreign currencies, returns on

 Asset Class Performance Comparison % returns during the six months ended 4/30/2015

This graph compares the performance of various asset classes during the report period. Final performance figures for the period are in the key below.

	4.40%	S&P 500® Index: measures U.S. large-cap stocks
	4.65%	Russell 2000® Index: measures U.S. small-cap stocks
	6.81%	MSCI EAFE® Index (Net): measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East
	2.06%	Barclays U.S. Aggregate Bond Index: measures the U.S. bond market
	0.01%	Barclays U.S. Treasury Bills 1-3 Months Index: measures short-term U.S. Treasury obligations

Index figures assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Past performance is not an indication of future results.

For index definitions, please see the Glossary.

Data source: Index provider websites and CSIM.

Nothing in this report represents a recommendation of a security by the investment adviser.

Management views and portfolio holdings may have changed since the report date.

Schwab Equity Index Funds 3

From the President continued

For the six-month reporting period ended April 30, 2015, many of the funds generated returns that were closely aligned with their respective indices and reflected a positive performance by both U.S. and international equities.

overseas investments will generally be reduced in U.S. dollar terms. However, as international markets performed particularly well this reporting period, returns on many of these investments were positive even when translated into U.S. dollars. Reflecting these conditions, the MSCI EAFE Index, which broadly represents the performance of international stocks, returned 6.8%¹, and the S&P 500 Index, which broadly represents the performance of U.S. large-cap equities, returned 4.4%.

For more information about the performance, holdings, and portfolio characteristics of the Schwab Equity Index Funds, please continue reading this report. In addition, you can find further details about these funds by visiting our new website at www.csimfunds.com, which provides improved functionality, enhanced design, and access to industry insights. We are also happy to hear from you at 1-800-435-4000.

Sincerely,

For full definitions of the referenced indices, please see the Glossary

¹ The total return cited is calculated net of foreign withholding taxes.

4 Schwab Equity Index Funds

Fund Management

	Agnes Hong, CFA, Vice President and Head of Passive Equities, leads the portfolio management teams of Schwab’s index mutual funds and equity ETFs. She also has overall responsibility for all aspects of the management of the funds. Prior to joining CSIM in 2009, Ms. Hong spent five years as a portfolio manager at Barclays Global Investors (subsequently acquired by BlackRock), where she managed institutional index funds and quantitative active funds. Prior to that, Ms. Hong worked in management consulting and product management, servicing global financial services clients.
	Ferian Juwono, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors), where he spent over three years as a portfolio manager, managing equity index funds for institutional clients, and nearly two years as a senior business analyst. Prior to that, Mr. Juwono worked for over four years as a senior financial analyst with Union Bank of California.
	David Rios, Portfolio Manager, is responsible for the day-to-day co-management of the Schwab S&P 500 Index Fund, Schwab 1000 Fund, and Schwab Small-Cap Index Fund. He joined CSIM in 2008 and became a Portfolio Manager in September 2014. Prior to this role, Mr. Rios served as an Associate Portfolio Manager on the Schwab Equity Index Strategies team for four years. His first role with CSIM was as a trade operation specialist. He also previously worked as a senior fund accountant at Investors Bank & Trust (subsequently acquired by State Street Corporation).

Schwab Equity Index Funds 5

Schwab S&P 500 Index Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2,3

Fund and Inception Date	6 Months			1 Year			5 Years			10 Years
Fund: Schwab S&P 500 Index Fund (5/19/97)		4.33	%		12.87	%		14.23	%		8.28	%
S&P 500® Index		4.40	%		12.98	%		14.33	%		8.32	%
Fund Category: Morningstar Large Blend		3.99	%		10.83	%		12.82	%		7.66	%

Fund Expense Ratio⁴: 0.09%

 Statistics

Number of Holdings	505
Weighted Average Market Cap (millions)	$136,236
Price/Earnings Ratio (P/E)	21.2
Price/Book Ratio (P/B)	2.8
Portfolio Turnover Rate5	1%

 Sector Weightings % of Investments

Information Technology	19.8%
Financials	16.0%
Health Care	14.5%
Consumer Discretionary	12.4%
Industrials	10.2%
Consumer Staples	9.4%
Energy	8.4%
Materials	3.2%
Utilities	3.0%
Telecommunication Services	2.3%
Other	0.8%
Total	100.0%

 Top Equity Holdings % of Net Assets⁶

Apple, Inc.	3.9%
Microsoft Corp.	2.1%
Exxon Mobil Corp.	2.0%
Johnson & Johnson	1.5%
General Electric Co.	1.5%
Wells Fargo & Co.	1.4%
Berkshire Hathaway, Inc., Class B	1.4%
JPMorgan Chase & Co.	1.3%
The Procter & Gamble Co.	1.2%
Verizon Communications, Inc.	1.1%
Total	17.4%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Index ownership – Standard & Poor’s^® S&P^®, S&P 500^®, Standard & Poor’s 500^® and 500^® are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by the Schwab S&P 500 Index Fund. The Schwab S&P 500 Index Fund is not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s makes no representation regarding the advisability of investing in the fund.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	On September 9, 2009, the Investor Share class, Select Share class and e.Shares class were combined into a single class of shares of the fund. The performance history of the fund prior to September 9, 2009 is that of the fund’s former Select Shares. On September 9, 2009, the Schwab Institutional Select S&P 500 Fund merged into the fund.
4	As stated in the prospectus. Reflects the total annual operating expenses without contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
5	Not annualized.
6	This list is not a recommendation of any security by the investment adviser.

6 Schwab Equity Index Funds

Schwab 1000 Index Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2,3

Fund and Inception Date	6 Months			1 Year			5 Years			10 Years
Fund: Schwab 1000 Index Fund (4/2/91)		4.54	%		12.63	%		14.06	%		8.38	%
Schwab 1000 Index®		4.68	%		12.94	%		14.37	%		8.70	%
S&P 500® Index		4.40	%		12.98	%		14.33	%		8.32	%
Fund Category: Morningstar Large Blend		3.99	%		10.83	%		12.82	%		7.66	%

Fund Expense Ratios⁴: Net 0.29%; Gross 0.33%

 Statistics

Number of Holdings	987
Weighted Average Market Cap (millions)	$120,240
Price/Earnings Ratio (P/E)	22.1
Price/Book Ratio (P/B)	2.8
Portfolio Turnover Rate5	3%

 Sector Weightings % of Investments

Information Technology	19.4%
Financials	16.8%
Health Care	14.2%
Consumer Discretionary	13.0%
Industrials	10.6%
Consumer Staples	8.7%
Energy	7.9%
Materials	3.4%
Utilities	3.1%
Telecommunication Services	2.2%
Other	0.7%
Total	100.0%

 Top Equity Holdings % of Net Assets⁶

Apple, Inc.	3.4%
Microsoft Corp.	1.9%
Exxon Mobil Corp.	1.7%
Johnson & Johnson	1.3%
General Electric Co.	1.3%
Wells Fargo & Co.	1.2%
Berkshire Hathaway, Inc., Class B	1.2%
JPMorgan Chase & Co.	1.1%
The Procter & Gamble Co.	1.0%
Chevron Corp.	1.0%
Total	15.1%

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 you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	On September 18, 2009, the Investor Share class and Select Share class were combined into a single class of shares of the fund. The performance history of the fund prior to September 18, 2009 is that of the fund’s former Investor Shares.
4	As stated in the prospectus. The expense information shown in the table has been restated to reflect the removal of expenses incurred indirectly by the fund through its investment in business development companies (“BDCs”). The fund’s benchmark index no longer includes BDCs. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
5	Not annualized.
6	This list is not a recommendation of any security by the investment adviser.

Schwab Equity Index Funds 7

Schwab Small-Cap Index Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2,3

Fund and Inception Date	6 Months			1 Year			5 Years			10 Years
Fund: Schwab Small-Cap Index Fund (5/19/97)		4.63	%		9.74	%		12.94	%		9.94	%
Russell 2000® Index		4.65	%		9.71	%		12.73	%		9.18	%
Small-Cap Spliced Index		4.65	%		9.71	%		12.94	%		10.01	%
Fund Category: Morningstar Small Blend		3.71	%		6.86	%		12.17	%		8.69	%

Fund Expense Ratios⁴: Net 0.17%; Gross 0.21%

 Statistics

Number of Holdings	2,000
Weighted Average Market Cap (millions)	$2,007
Price/Earnings Ratio (P/E)	52.5
Price/Book Ratio (P/B)	2.2
Portfolio Turnover Rate5	5%

 Sector Weightings % of Investments

Financials	22.7%
Information Technology	17.1%
Health Care	14.6%
Consumer Discretionary	13.1%
Industrials	12.8%
Materials	4.2%
Energy	3.7%
Utilities	3.4%
Consumer Staples	2.9%
Telecommunication Services	0.7%
Other	4.8%
Total	100.0%

 Top Equity Holdings % of Net Assets⁶

Qorvo, Inc.	0.5%
Isis Pharmaceuticals, Inc.	0.4%
JetBlue Airways Corp.	0.3%
DexCom, Inc.	0.3%
Office Depot, Inc.	0.3%
Graphic Packaging Holding Co.	0.3%
The Ultimate Software Group, Inc.	0.3%
Brunswick Corp.	0.3%
Puma Biotechnology, Inc.	0.2%
Cypress Semiconductor Corp.	0.2%
Total	3.1%

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 – “Russell 2000^®” is a registered mark of the Frank Russell Company (“Russell”) and has been licensed for use by the Schwab Small-Cap Index Fund. The Schwab Small-Cap Index Fund is not sponsored, endorsed, sold or promoted by Russell and Russell makes no representation regarding the advisability of investing in the fund.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

Small-company stocks are subject to greater volatility than many other asset classes.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	On August 21, 2009, the Investor Share class and Select Share class were combined into a single class of shares of the fund. The performance history of the fund prior to August 21, 2009 is that of the fund’s former Select Shares.
4	As stated in the prospectus. The expense information shown in the table has been restated to reflect the removal of expenses incurred indirectly by the fund through its investment in business development companies (“BDCs”). The fund’s benchmark index no longer includes BDCs. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
5	Not annualized.
6	This list is not a recommendation of any security by the investment adviser.

8 Schwab Equity Index Funds

Schwab Total Stock Market Index Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2,3

Fund and Inception Date	6 Months			1 Year			5 Years			10 Years
Fund: Schwab Total Stock Market Index Fund (6/1/99)		4.66	%		12.58	%		14.35	%		8.82	%
Dow Jones U.S. Total Stock Market Index		4.73	%		12.67	%		14.37	%		8.82	%
Fund Category: Morningstar Large Blend		3.99	%		10.83	%		12.82	%		7.66	%

Fund Expense Ratios⁴: Net 0.09%; Gross 0.10%

 Statistics

Number of Holdings	2,498
Weighted Average Market Cap (millions)	$110,769
Price/Earnings Ratio (P/E)	23.2
Price/Book Ratio (P/B)	2.7
Portfolio Turnover Rate5	0%

 Sector Weightings % of Investments

Information Technology	18.9%
Financials	17.3%
Health Care	14.0%
Consumer Discretionary	13.0%
Industrials	10.9%
Consumer Staples	8.1%
Energy	7.7%
Materials	3.5%
Utilities	3.0%
Telecommunication Services	2.1%
Other	1.5%
Total	100.0%

 Top Equity Holdings % of Net Assets⁶

Apple, Inc.	3.2%
Microsoft Corp.	1.7%
Exxon Mobil Corp.	1.6%
Johnson & Johnson	1.2%
General Electric Co.	1.2%
Wells Fargo & Co.	1.1%
Berkshire Hathaway, Inc., Class B	1.1%
JPMorgan Chase & Co.	1.0%
The Procter & Gamble Co.	0.9%
Verizon Communications, Inc.	0.9%
Total	13.9%

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 you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Index ownership – “Dow Jones” and “The Dow Jones U.S. Total Stock Market Index” are service marks of Dow Jones & Company, Inc. and have been licensed for certain purposes by CSIM. The Schwab Total Stock Market Index Fund, based on The Dow Jones U.S. Total Stock Market Index, is not sponsored, endorsed, sold or promoted by Dow Jones and Dow Jones makes no representation regarding the advisability of investing in such a product.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	On September 18, 2009, the Investor Share class and Select Share class were combined into a single class of shares of the fund. The performance history of the fund prior to September 18, 2009 is that of the fund’s former Select Shares.
4	As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
5	Not annualized. Less than 0.5%.
6	This list is not a recommendation of any security by the investment adviser.

Schwab Equity Index Funds 9

Schwab International Index Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2,3

Fund and Inception Date	6 Months			1 Year			5 Years			10 Years
Fund: Schwab International Index Fund (5/19/97)		5.55	%		0.87	%		7.46	%		5.60	%
MSCI EAFE® Index (Net)4		6.81	%		1.66	%		7.40	%		5.62	%
International Spliced Index		6.81	%		1.66	%		7.51	%		5.87	%
Fund Category: Morningstar Foreign Large Blend		5.89	%		2.25	%		6.79	%		5.64	%

Fund Expense Ratios⁵: Net 0.19%; Gross 0.23%

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.

The fund’s performance relative to the index may be affected by fair-value pricing, see financial note 2 for more information.

Index ownership — “MSCI EAFE” is a registered mark of MSCI and has been licensed for use by the Schwab International Index Fund. The Schwab International Index Fund is not sponsored, endorsed, sold or promoted by MSCI and MSCI bears no liability with respect to the fund. The Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with the fund.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	On August 21, 2009, the Investor Share class and Select Share class were combined into a single class of shares of the fund. The performance history of the fund prior to August 21, 2009 is that of the fund’s former Select Shares.
4	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
5	As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.

10 Schwab Equity Index Funds

 Schwab International Index Fund

Performance and Fund Facts as of 04/30/15 continued

 Statistics

Number of Holdings	924
Weighted Average Market Cap (millions)	$64,452
Price/Earnings Ratio (P/E)	20.0
Price/Book Ratio (P/B)	1.7
Portfolio Turnover Rate1	7%

 Sector Weightings % of Investments

Financials	25.6%
Consumer Discretionary	12.7%
Industrials	12.4%
Health Care	11.0%
Consumer Staples	10.8%
Materials	7.3%
Energy	5.5%
Telecommunication Services	4.7%
Information Technology	4.7%
Utilities	3.5%
Other	1.8%
Total	100.0%

 Top Equity Holdings % of Net Assets²

Nestle S.A. – Reg’d	1.8%
Novartis AG – Reg’d	1.7%
Roche Holding AG	1.5%
HSBC Holdings plc	1.4%
Toyota Motor Corp.	1.4%
BP plc	1.0%
Royal Dutch Shell plc, A Shares	0.9%
Sanofi	0.9%
Bayer AG – Reg’d	0.9%
Total S.A.	0.8%
Total	12.3%

 Country Weightings % of Investments

Japan	21.8%
United Kingdom	19.9%
France	9.7%
Switzerland	9.0%
Germany	8.9%
Australia	7.0%
Spain	3.5%
Hong Kong	3.2%
Sweden	3.0%
Netherlands	2.7%
Other Countries	11.3%
Total	100.0%

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.

1	Not annualized.
2	This list is not a recommendation of any security by the investment adviser.

Schwab Equity Index Funds 11

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 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 November 1, 2014 and held through April 30, 2015.

Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ¸ $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.

You may use this information to compare the ongoing costs of investing in a fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, 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.

					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio1		Account Value		(Net of Expenses)		During Period2
	(Annualized)		at 11/1/14		at 4/30/15		11/1/14–4/30/15
Schwab S&P 500 Index Fund
Actual Return		0.09%	$	1,000.00	$	1,043.30	$	0.46
Hypothetical 5% Return		0.09%	$	1,000.00	$	1,024.35	$	0.45
Schwab 1000 Index Fund
Actual Return		0.29%	$	1,000.00	$	1,045.40	$	1.47
Hypothetical 5% Return		0.29%	$	1,000.00	$	1,023.36	$	1.45
Schwab Small-Cap Index Fund
Actual Return		0.17%	$	1,000.00	$	1,046.30	$	0.86
Hypothetical 5% Return		0.17%	$	1,000.00	$	1,023.96	$	0.85
Schwab Total Stock Market Index Fund
Actual Return		0.09%	$	1,000.00	$	1,046.60	$	0.46
Hypothetical 5% Return		0.09%	$	1,000.00	$	1,024.35	$	0.45
Schwab International Index Fund
Actual Return		0.19%	$	1,000.00	$	1,055.50	$	0.97
Hypothetical 5% Return		0.19%	$	1,000.00	$	1,023.86	$	0.95

1	Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights.
2	Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days of the period, and divided by the 365 days of the fiscal year.

12 Schwab Equity Index Funds

Schwab S&P 500 Index Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		31.99			27.78			22.35			19.82			18.70			16.28
Income (loss) from investment operations:
Net investment income (loss)		0.35	1		0.56			0.52			0.44			0.39			0.35
Net realized and unrealized gains (losses)		1.00			4.13			5.40			2.49			1.09			2.31
Total from investment operations		1.35			4.69			5.92			2.93			1.48			2.66
Less distributions:
Distributions from net investment income		(0.58	)		(0.48	)		(0.49	)		(0.40	)		(0.36	)		(0.24	)
Net asset value at end of period		32.76			31.99			27.78			22.35			19.82			18.70
Total return (%)		4.33	2		17.16			27.06			15.09			7.97			16.50
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		0.09	3		0.09			0.09			0.09			0.09			0.09
Gross operating expenses		0.09	3		0.09			0.09			0.10			0.10			0.10
Net investment income (loss)		2.17	3		1.89			2.10			2.09			1.96			1.97
Portfolio turnover rate		1	2		2			1			2			3			2
Net assets, end of period ($ x 1,000,000)		21,729			20,473			17,121			12,687			10,909			10,007

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

See financial notes 13

 Schwab S&P 500 Index Fund

Condensed Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows the fund’s 50 largest portfolio holdings in unaffiliated issuers, and any holdings exceeding 1% of the fund’s net assets as of the report date, and any affiliated issuers. The remaining securities held by the fund are grouped as “Other Securities” in each category. You can request a complete schedule of portfolio holdings as of the report date, free of charge, by calling Schwab Funds^® at 1-800-435-4000. This complete schedule, filed on the fund’s Form N-CSRS, is also available on the SEC’s website at www.sec.gov.

In addition, the fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15-20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.2%	Common Stock		12,186,042,788		21,550,464,571
	0	.2%	Other Investment Company		39,573,711		39,573,711
	0	.6%	Short-Term Investments		134,735,564		134,735,564
	100	.0%	Total Investments		12,360,352,063		21,724,773,846
	0	.0%	Other Assets and Liabilities, Net				4,694,090
	100	.0%	Net Assets				21,729,467,936

	Number		% of Net		Value
Security	of Shares		Assets		($)
Common Stock 99.2% of net assets
Automobiles & Components 1.1%
Other Securities				1.1		233,166,325
Banks 5.8%
Bank of America Corp.		12,290,811		0.9		195,792,619
Citigroup, Inc.		3,543,947		0.9		188,963,254
JPMorgan Chase & Co.		4,351,131		1.2		275,252,547
Wells Fargo & Co.		5,472,309		1.4		301,524,226
Other Securities				1.4		307,312,946
				5.8		1,268,845,592
Capital Goods 7.4%
3M Co.		742,219		0.5		116,075,629
General Electric Co.		11,744,652		1.5		318,045,176
The Boeing Co.		765,654		0.5		109,748,844
United Technologies Corp.		959,835		0.5		109,181,231
Other Securities				4.4		951,859,340
				7.4		1,604,910,220
Commercial & Professional Supplies 0.6%
Other Securities				0.6		135,373,351
Consumer Durables & Apparel 1.4%
Other Securities				1.4		300,029,432
Consumer Services 1.7%
McDonald’s Corp.		1,124,038		0.5		108,525,869
Other Securities				1.2		267,177,905
				1.7		375,703,774
Diversified Financials 5.1%
Berkshire Hathaway, Inc., Class B *		2,126,930		1.4		300,343,785
The Charles Schwab Corp. (a)		1,338,581		0.2		40,826,721
Other Securities				3.5		756,373,635
				5.1		1,097,544,141
Energy 8.4%
Chevron Corp.		2,192,834		1.1		243,536,144
Exxon Mobil Corp.		4,885,541		2.0		426,849,717
Schlumberger Ltd.		1,475,715		0.6		139,617,396
Other Securities				4.7		1,021,163,321
				8.4		1,831,166,578
Food & Staples Retailing 2.4%
CVS Health Corp.		1,308,451		0.6		129,916,100
Wal-Mart Stores, Inc.		1,845,802		0.7		144,064,846
Other Securities				1.1		243,953,643
				2.4		517,934,589
Food, Beverage & Tobacco 5.2%
Altria Group, Inc.		2,296,091		0.5		114,919,355
PepsiCo, Inc.		1,731,963		0.8		164,744,321
Philip Morris International, Inc.		1,807,546		0.7		150,875,865
The Coca-Cola Co.		4,587,756		0.8		186,079,383
Other Securities				2.4		513,335,111
				5.2		1,129,954,035
Health Care Equipment & Services 4.9%
Medtronic plc		1,656,176		0.6		123,302,303
UnitedHealth Group, Inc.		1,116,110		0.6		124,334,654
Other Securities				3.7		816,943,438
				4.9		1,064,580,395
Household & Personal Products 1.9%
The Procter & Gamble Co.		3,156,090		1.2		250,940,716
Other Securities				0.7		151,006,833
				1.9		401,947,549
Insurance 2.6%
Other Securities				2.6		569,314,249
Materials 3.2%
Other Securities				3.2		695,041,736
Media 3.5%
Comcast Corp., Class A		2,971,164		0.8		171,614,433
The Walt Disney Co.		1,825,783		0.9		198,499,128
Other Securities				1.8		399,288,585
				3.5		769,402,146

14 See financial notes

 Schwab S&P 500 Index Fund

Condensed Portfolio Holdings (Unaudited) continued

	Number		% of Net		Value
Security	of Shares		Assets		($)
Pharmaceuticals, Biotechnology & Life Sciences 9.6%
AbbVie, Inc.		1,862,186		0.6		120,408,947
Actavis plc *		456,868		0.6		129,229,682
Amgen, Inc.		888,459		0.6		140,296,561
Bristol-Myers Squibb Co.		1,947,464		0.6		124,111,881
Gilead Sciences, Inc. *		1,739,450		0.8		174,832,119
Johnson & Johnson		3,246,525		1.5		322,055,280
Merck & Co., Inc.		3,313,614		0.9		197,358,850
Pfizer, Inc.		7,155,933		1.1		242,800,807
Other Securities				2.9		631,352,741
				9.6		2,082,446,868
Real Estate 2.5%
Other Securities				2.5		540,340,873
Retailing 4.6%
Amazon.com, Inc. *		444,580		0.9		187,514,952
The Home Depot, Inc.		1,544,550		0.7		165,235,959
Other Securities				3.0		655,400,940
				4.6		1,008,151,851
Semiconductors & Semiconductor Equipment 2.4%
Intel Corp.		5,530,205		0.8		180,008,173
Other Securities				1.6		332,138,067
				2.4		512,146,240
Software & Services 10.5%
Facebook, Inc., Class A *		2,449,800		0.9		192,970,746
Google, Inc., Class A *		333,312		0.8		182,911,626
Google, Inc., Class C *		335,075		0.8		180,049,342
International Business Machines Corp.		1,073,290		0.8		183,843,844
MasterCard, Inc., Class A		1,143,390		0.5		103,145,212
Microsoft Corp.		9,574,431		2.1		465,700,324
Oracle Corp.		3,743,586		0.8		163,295,221
Visa, Inc., Class A		2,255,600		0.7		148,982,380
Other Securities				3.1		671,079,147
				10.5		2,291,977,842
Technology Hardware & Equipment 6.9%
Apple, Inc.		6,797,315		3.9		850,683,972
Cisco Systems, Inc.		5,964,728		0.8		171,963,108
QUALCOMM, Inc.		1,919,765		0.6		130,544,020
Other Securities				1.6		340,140,324
				6.9		1,493,331,424
Telecommunication Services 2.3%
AT&T, Inc.		6,069,536		1.0		210,248,727
Verizon Communications, Inc.		4,851,978		1.1		244,733,770
Other Securities				0.2		49,232,537
				2.3		504,215,034
Transportation 2.2%
Union Pacific Corp.		1,031,250		0.5		109,549,687
Other Securities				1.7		366,477,496
				2.2		476,027,183
Utilities 3.0%
Other Securities				3.0		646,913,144
Total Common Stock
(Cost $12,186,042,788)						21,550,464,571
Other Investment Company 0.2% of net assets
Securities Lending Collateral 0.2%
Other Securities				0.2		39,573,711
Total Other Investment Company
(Cost $39,573,711)						39,573,711
	Face
Security	Amount		% of Net		Value
Rate, Maturity Date	($)		Assets		($)
Short-Term Investments 0.6% of net assets
Time Deposits 0.6%
JPMorgan Chase Bank
0.03%, 05/01/15		106,863,357		0.5		106,863,357
Other Securities				0.1		27,872,207
				0.6
Total Short-Term Investments
(Cost $134,735,564)						134,735,564
End of Investments.

At 04/30/15, tax basis cost of the fund’s investments was $12,401,488,360 and the unrealized appreciation and depreciation were $9,776,773,374 and ($453,487,888), respectively, with a net unrealized appreciation of $9,323,285,486.

For the following notes, please refer to the complete schedule of portfolio holdings.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.
(b)	All or a portion of this security is on loan. Securities on loan were valued at $39,607,948.
(c)	The rate shown is the 7-day yield.

REIT — Real Estate Investment Trust

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Appreciation
	Contracts		($)		($)
Futures Contracts
S&P 500 Index, e-mini, Long, expires 06/19/15		1,500		155,917,500		15,211

See financial notes 15

 Schwab S&P 500 Index Fund

Condensed Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Common Stock1		$21,550,464,571		$—		$—		$21,550,464,571
Other Investment Company1		39,573,711		—		—		39,573,711
Short-Term Investments1		—		134,735,564		—		134,735,564
Total		$21,590,038,282		$134,735,564		$—		$21,724,773,846
Other Financial Instruments
Futures Contracts2		$15,211		$—		$—		$15,211

1	As categorized in the complete schedule of portfolio holdings.
2	Futures contracts are not included in Investments in the schedule of condensed portfolio holdings and are valued at unrealized appreciation or depreciation.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

16 See financial notes

 Schwab S&P 500 Index Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated issuers, at value (cost $18,579,130)		$40,826,721
Investments in unaffiliated issuers, at value (cost $12,302,199,222) including securities on loan of $39,607,948		21,644,373,414
Collateral invested for securities on loan, at value (cost $39,573,711)	+	39,573,711
Total investments, at value (cost $12,360,352,063)		21,724,773,846
Deposit with broker for futures contracts		11,960,000
Receivables:
Fund shares sold		34,757,043
Dividends		19,774,564
Income from securities on loan		105,234
Prepaid expenses	+	89,811
Total assets		21,791,460,498
Liabilities
Collateral held for securities on loan		39,573,711
Payables:
Investment adviser and administrator fees		253,377
Shareholder service fees		91,692
Fund shares redeemed		20,538,242
Variation margin on futures contracts		1,507,500
Accrued expenses	+	28,040
Total liabilities		61,992,562
Net Assets
Total assets		21,791,460,498
Total liabilities	−	61,992,562
Net assets		$21,729,467,936
Net Assets by Source
Capital received from investors		12,212,966,755
Net investment income not yet distributed		147,775,180
Net realized capital gains		4,289,007
Net unrealized capital appreciation		9,364,436,994
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$21,729,467,936		663,269,592			$32.76

See financial notes 17

 Schwab S&P 500 Index Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated issuer		$156,310
Dividends received from unaffiliated issuers (net of foreign withholding taxes of $12,662)		236,784,820
Interest		50,331
Securities on loan	+	478,266
Total investment income		237,469,727
Expenses
Investment adviser and administrator fees		6,298,295
Shareholder service fees		1,999,701
Portfolio accounting fees		220,167
Transfer agent fees		199,993
Shareholder reports		175,444
Custodian fees		173,724
Registration fees		94,458
Professional fees		49,980
Independent trustees’ fees		49,851
Index fee		37,952
Other expenses	+	226,102
Total expenses		9,525,667
Expense reduction by CSIM and its affiliates	−	199,993
Net expenses	−	9,325,674
Net investment income		228,144,053
Realized and Unrealized Gains (Losses)
Net realized gains on unaffiliated investments		208,126,303
Net realized gains on futures contracts	+	32,741,239
Net realized gains		240,867,542
Net change in unrealized appreciation (depreciation) on affiliated issuer		2,393,804
Net change in unrealized appreciation (depreciation) on unaffiliated investments		432,374,458
Net change in unrealized appreciation (depreciation) on futures contracts	+	(12,351,264	)
Net change in unrealized appreciation (depreciation)	+	422,416,998
Net realized and unrealized gains		663,284,540
Increase in net assets resulting from operations		$891,428,593

18 See financial notes

 Schwab S&P 500 Index Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$228,144,053			$356,205,063
Net realized gains		240,867,542			93,310,110
Net change in unrealized appreciation (depreciation)	+	422,416,998			2,525,286,191
Increase in net assets from operations		891,428,593			2,974,801,364
Distributions to Shareholders
Distributions from net investment income		($369,772,138	)		($297,103,536	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			81,785,253		$2,646,990,069			139,516,160		$4,137,951,788
Shares reinvested			10,513,082		323,697,798			9,293,269		257,330,630
Shares redeemed	+		(69,103,912	)	(2,236,165,746	)		(125,148,250	)	(3,720,729,510	)
Net transactions in fund shares			23,194,423		$734,522,121			23,661,179		$674,552,908
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			640,075,169		$20,473,289,360			616,413,990		$17,121,038,624
Total increase	+		23,194,423		1,256,178,576			23,661,179		3,352,250,736
End of period			663,269,592		$21,729,467,936			640,075,169		$20,473,289,360
Net investment income not yet distributed					$147,775,180					$289,403,265

See financial notes 19

Schwab 1000 Index Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		53.63			48.31			40.23			37.44			35.79			31.00
Income (loss) from investment operations:
Net investment income (loss)1		0.50			0.83			0.81			0.71			0.62			0.57
Net realized and unrealized gains (losses)		1.78			6.74			9.74			4.32			2.07			4.80
Total from investment operations		2.28			7.57			10.55			5.03			2.69			5.37
Less distributions:
Distributions from net investment income		(0.86	)		(0.75	)		(0.81	)		(0.72	)		(0.57	)		(0.58	)
Distributions from net realized gains		(1.44	)		(1.50	)		(1.66	)		(1.52	)		(0.47	)		—
Total distributions		(2.30	)		(2.25	)		(2.47	)		(2.24	)		(1.04	)		(0.58	)
Net asset value at end of period		53.61			53.63			48.31			40.23			37.44			35.79
Total return (%)		4.54	2		16.36			27.85			14.38			7.60			17.51
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		0.29	3		0.29			0.29			0.29			0.29			0.29
Gross operating expenses		0.33	3		0.33			0.34			0.34			0.34			0.35
Net investment income (loss)		1.90	3		1.64			1.87			1.85			1.64			1.71
Portfolio turnover rate		3	2		4			4			4			5			5
Net assets, end of period ($ x 1,000,000)		6,663			6,586			5,887			4,848			4,552			4,575

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

20 See financial notes

 Schwab 1000 Index Fund

Condensed Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows the fund’s 50 largest portfolio holdings in unaffiliated issuers, and any holdings exceeding 1% of the fund’s net assets as of the report date, and any affiliated issuers. The remaining securities held by the fund are grouped as “Other Securities” in each category. You can request a complete schedule of portfolio holdings as of the report date, free of charge, by calling Schwab Funds^® at 1-800-435-4000. This complete schedule, filed on the fund’s Form N-CSRS, is also available on the SEC’s website at www.sec.gov.

In addition, the fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15-20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.4%	Common Stock		2,041,401,826		6,620,644,462
	0	.7%	Other Investment Companies		46,910,908		46,910,908
	100	.1%	Total Investments		2,088,312,734		6,667,555,370
	(0	.1%)	Other Assets and Liabilities, Net				(4,356,626	)
	100	.0%	Net Assets				6,663,198,744

	Number		% of Net		Value
Security	of Shares		Assets		($)
Common Stock 99.4% of net assets
Automobiles & Components 1.2%
Other Securities				1.2		83,001,905
Banks 5.5%
Bank of America Corp.		3,277,241		0.8		52,206,449
Citigroup, Inc.		945,456		0.8		50,411,714
JPMorgan Chase & Co.		1,166,978		1.1		73,823,028
Wells Fargo & Co.		1,474,296		1.2		81,233,710
Other Securities				1.6		108,134,164
				5.5		365,809,065
Capital Goods 7.5%
3M Co.		199,954		0.5		31,270,806
General Electric Co.		3,138,202		1.3		84,982,510
The Boeing Co.		205,289		0.4		29,426,125
United Technologies Corp.		258,203		0.4		29,370,591
Other Securities				4.9		326,491,735
				7.5		501,541,767
Commercial & Professional Supplies 0.8%
Other Securities				0.8		53,281,038
Consumer Durables & Apparel 1.5%
Other Securities				1.5		98,018,550
Consumer Services 2.1%
McDonald’s Corp.		304,436		0.5		29,393,296
Other Securities				1.6		107,168,500
				2.1		136,561,796
Diversified Financials 4.8%
Berkshire Hathaway, Inc., Class B *		570,212		1.2		80,519,637
The Charles Schwab Corp. (a)		356,265		0.1		10,866,082
Other Securities				3.5		230,979,348
				4.8		322,365,067
Energy 7.9%
Chevron Corp.		588,837		1.0		65,396,237
Exxon Mobil Corp.		1,321,963		1.7		115,499,907
Schlumberger Ltd.		397,547		0.6		37,611,922
Other Securities				4.6		308,225,366
				7.9		526,733,432
Food & Staples Retailing 2.2%
CVS Health Corp.		353,611		0.5		35,110,036
Wal-Mart Stores, Inc.		494,027		0.6		38,558,808
Other Securities				1.1		70,517,121
				2.2		144,185,965
Food, Beverage & Tobacco 4.8%
Altria Group, Inc.		617,605		0.5		30,911,130
PepsiCo, Inc.		468,285		0.7		44,543,269
Philip Morris International, Inc.		484,265		0.6		40,421,600
The Coca-Cola Co.		1,232,948		0.7		50,008,371
Other Securities				2.3		153,327,619
				4.8		319,211,989
Health Care Equipment & Services 4.9%
Medtronic plc		444,022		0.5		33,057,438
UnitedHealth Group, Inc.		300,492		0.5		33,474,809
Other Securities				3.9		261,789,519
				4.9		328,321,766
Household & Personal Products 1.7%
The Procter & Gamble Co.		842,819		1.0		67,012,539
Other Securities				0.7		49,239,054
				1.7		116,251,593
Insurance 2.9%
Other Securities				2.9		194,861,434
Materials 3.4%
Other Securities				3.4		228,724,332
Media 3.7%
Comcast Corp., Class A		795,623		0.7		45,955,184
The Walt Disney Co.		487,560		0.8		53,007,523
Other Securities				2.2		145,956,207
				3.7		244,918,914

See financial notes 21

 Schwab 1000 Index Fund

Condensed Portfolio Holdings (Unaudited) continued

	Number		% of Net		Value
Security	of Shares		Assets		($)
Pharmaceuticals, Biotechnology & Life Sciences 9.3%
AbbVie, Inc.		497,546		0.5		32,171,324
Actavis plc *		122,677		0.5		34,700,416
Amgen, Inc.		238,802		0.6		37,709,224
Bristol-Myers Squibb Co.		519,939		0.5		33,135,713
Gilead Sciences, Inc. *		472,544		0.7		47,495,397
Johnson & Johnson		872,887		1.3		86,590,390
Merck & Co., Inc.		891,318		0.8		53,086,900
Pfizer, Inc.		1,925,151		1.0		65,320,373
Other Securities				3.4		227,906,734
				9.3		618,116,471
Real Estate 3.6%
Other Securities				3.6		238,209,173
Retailing 4.6%
Amazon.com, Inc. *		118,641		0.7		50,040,401
The Home Depot, Inc.		412,235		0.7		44,100,900
Other Securities				3.2		212,710,083
				4.6		306,851,384
Semiconductors & Semiconductor Equipment 2.3%
Intel Corp.		1,483,180		0.7		48,277,509
Other Securities				1.6		106,208,233
				2.3		154,485,742
Software & Services 10.6%
Facebook, Inc., Class A *		654,300		0.8		51,539,211
Google, Inc., Class A *		89,988		0.7		49,382,715
Google, Inc., Class C *		89,333		0.7		48,001,951
International Business Machines Corp.		287,840		0.7		49,304,114
MasterCard, Inc., Class A		306,910		0.4		27,686,351
Microsoft Corp.		2,576,838		1.9		125,337,400
Oracle Corp.		1,003,410		0.7		43,768,744
Visa, Inc., Class A		611,200		0.6		40,369,760
Other Securities				4.1		272,057,529
				10.6		707,447,775
Technology Hardware & Equipment 6.5%
Apple, Inc.		1,826,074		3.4		228,533,161
Cisco Systems, Inc.		1,599,015		0.7		46,099,602
QUALCOMM, Inc.		519,678		0.6		35,338,104
Other Securities				1.8		119,928,102
				6.5		429,898,969
Telecommunication Services 2.2%
AT&T, Inc.		1,611,077		0.8		55,807,707
Verizon Communications, Inc.		1,294,657		1.0		65,302,499
Other Securities				0.4		23,055,743
				2.2		144,165,949
Transportation 2.3%
Union Pacific Corp.		278,124		0.4		29,545,113
Other Securities				1.9		124,350,452
				2.3		153,895,565
Utilities 3.1%
Other Securities				3.1		203,784,821
Total Common Stock
(Cost $2,041,401,826)						6,620,644,462
Other Investment Companies 0.7% of net assets
Money Market Fund 0.5%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c)		33,926,151		0.5		33,926,151
Securities Lending Collateral 0.2%
Other Securities				0.2		12,984,757
Total Other Investment Companies
(Cost $46,910,908)						46,910,908
End of Investments.

At 04/30/15, tax basis cost of the fund’s investments was $2,066,564,260 and the unrealized appreciation and depreciation were $4,637,291,154 and ($36,300,044), respectively, with a net unrealized appreciation of $4,600,991,110.

For the following notes, please refer to the complete schedule of portfolio holdings.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.
(b)	All or a portion of this security is on loan. Securities on loan were valued at $13,179,040. Non-cash collateral pledged to the fund for securities on loan amounted to $374,874.
(c)	The rate shown is the 7-day yield.

REIT — Real Estate Investment Trust

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Appreciation
	Contracts		($)		($)
Futures Contracts
S&P 500 Index, e-mini, Long, expires 06/19/15		335		34,821,575		243,920

22 See financial notes

 Schwab 1000 Index Fund

Condensed Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Common Stock1		$6,620,644,462		$—		$—		$6,620,644,462
Other Investment Companies1		46,910,908		—		—		46,910,908
Total		$6,667,555,370		$—		$—		$6,667,555,370
Other Financial Instruments
Futures Contracts2		$243,920		$—		$—		$243,920

1	As categorized in the complete schedule of portfolio holdings.
2	Futures contracts are not included in Investments in the schedule of condensed portfolio holdings and are valued at unrealized appreciation or depreciation.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 23

 Schwab 1000 Index Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated issuers, at value (cost $1,668,660)		$10,866,082
Investments in unaffiliated issuers, at value (cost $2,073,659,317) including securities on loan of $13,179,040		6,643,704,531
Collateral invested for securities on loan, at value (cost $12,984,757)	+	12,984,757
Total investments, at value (cost $2,088,312,734)		6,667,555,370
Cash		87
Deposit with broker for futures contracts		2,001,000
Receivables:
Dividends		5,659,246
Fund shares sold		2,945,074
Income from securities on loan		56,694
Prepaid expenses	+	46,001
Total assets		6,678,263,472
Liabilities
Collateral held for securities on loan		12,984,757
Payables:
Investment adviser and administrator fees		233,591
Shareholder service fees		129,448
Fund shares redeemed		1,299,734
Variation margin on futures contracts		336,675
Accrued expenses	+	80,523
Total liabilities		15,064,728
Net Assets
Total assets		6,678,263,472
Total liabilities	−	15,064,728
Net assets		$6,663,198,744
Net Assets by Source
Capital received from investors		1,840,449,106
Net investment income not yet distributed		39,984,299
Net realized capital gains		203,278,783
Net unrealized capital appreciation		4,579,486,556
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$6,663,198,744		124,297,076			$53.61

24 See financial notes

 Schwab 1000 Index Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated issuer		$44,048
Dividends received from unaffiliated issuers (net of foreign withholding taxes of $7,242)		72,177,233
Interest		93
Securities on loan	+	361,590
Total investment income		72,582,964
Expenses
Investment adviser and administrator fees		7,331,165
Shareholder service fees		3,208,950
Portfolio accounting fees		87,246
Shareholder reports		83,981
Custodian fees		59,958
Transfer agent fees		45,639
Professional fees		33,552
Independent trustees’ fees		25,675
Registration fees		20,612
Interest expense		273
Other expenses	+	92,895
Total expenses		10,989,946
Expense reduction by CSIM and its affiliates	−	1,366,141
Net expenses	−	9,623,805
Net investment income		62,959,159
Realized and Unrealized Gains (Losses)
Net realized gains on affiliated issuer		197,850
Net realized gains on unaffiliated investments		180,674,558
Net realized gains on futures contracts	+	356,508
Net realized gains		181,228,916
Net change in unrealized appreciation (depreciation) on affiliated issuer		476,897
Net change in unrealized appreciation (depreciation) on unaffiliated investments		50,753,100
Net change in unrealized appreciation (depreciation) on futures contracts	+	(556,931	)
Net change in unrealized appreciation (depreciation)	+	50,673,066
Net realized and unrealized gains		231,901,982
Increase in net assets resulting from operations		$294,861,141

See financial notes 25

 Schwab 1000 Index Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$62,959,159			$102,452,866
Net realized gains		181,228,916			177,941,436
Net change in unrealized appreciation (depreciation)	+	50,673,066			660,921,380
Increase in net assets from operations		294,861,141			941,315,682
Distributions to Shareholders
Distributions from net investment income		(105,608,703	)		(91,043,881	)
Distributions from net realized gains	+	(176,669,683	)		(182,379,726	)
Total distributions		($282,278,386	)		($273,423,607	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			4,853,833		$258,918,496			8,474,992		$424,679,163
Shares reinvested			4,867,270		244,385,619			5,073,441		236,878,978
Shares redeemed	+		(8,238,949	)	(439,055,668	)		(12,594,623	)	(630,314,274	)
Net transactions in fund shares			1,482,154		$64,248,447			953,810		$31,243,867
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			122,814,922		$6,586,367,542			121,861,112		$5,887,231,600
Total increase	+		1,482,154		76,831,202			953,810		699,135,942
End of period			124,297,076		$6,663,198,744			122,814,922		$6,586,367,542
Net investment income not yet distributed					$39,984,299					$82,633,843

26 See financial notes

Schwab Small-Cap Index Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		28.13			27.62			21.26			20.55			19.18			15.14
Income (loss) from investment operations:
Net investment income (loss)1		0.21			0.35			0.42			0.33			0.25			0.22
Net realized and unrealized gains (losses)		0.95			1.76			6.94			1.89			1.37			3.97
Total from investment operations		1.16			2.11			7.36			2.22			1.62			4.19
Less distributions:
Distributions from net investment income		(0.34	)		(0.31	)		(0.50	)		(0.35	)		(0.20	)		(0.15	)
Distributions from net realized gains		(1.54	)		(1.29	)		(0.50	)		(1.16	)		(0.05	)		—
Total distributions		(1.88	)		(1.60	)		(1.00	)		(1.51	)		(0.25	)		(0.15	)
Net asset value at end of period		27.41			28.13			27.62			21.26			20.55			19.18
Total return (%)		4.63	2		8.08			36.23			11.87			8.45			27.85
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		0.17	3		0.17			0.17			0.17			0.19			0.19
Gross operating expenses		0.20	3		0.21			0.20			0.21			0.19			0.20
Net investment income (loss)		1.55	3		1.27			1.76			1.63			1.18			1.23
Portfolio turnover rate		5	2		12			11			41	4		26			33
Net assets, end of period ($ x 1,000,000)		2,696			2,567			2,351			1,675			1,502			1,406

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

⁴ Portfolio turnover rate increase was mainly the result of trading activities in connection with the change in primary benchmark index effective December 14, 2011.

See financial notes 27

 Schwab Small-Cap Index Fund

Condensed Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows the fund’s 50 largest portfolio holdings in unaffiliated issuers, and any holdings exceeding 1% of the fund’s net assets as of the report date, and any affiliated issuers. The remaining securities held by the fund are grouped as “Other Securities” in each category. You can request a complete schedule of portfolio holdings as of the report date, free of charge, by calling Schwab Funds^® at 1-800-435-4000. This complete schedule, filed on the fund’s Form N-CSRS, is also available on the SEC’s website at www.sec.gov.

In addition, the fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15-20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.2%	Common Stock		1,852,070,505		2,674,435,521
	0	.0%	Rights		320,914		320,914
	0	.0%	Warrants		—		—
	4	.3%	Other Investment Company		115,143,210		115,143,210
	0	.7%	Short-Term Investment		20,490,679		20,490,679
	104	.2%	Total Investments		1,988,025,308		2,810,390,324
	(4	.2%)	Other Assets and Liabilities, Net				(114,097,384	)
	100	.0%	Net Assets				2,696,292,940

	Number		% of Net		Value
Security	of Shares		Assets		($)
Common Stock 99.2% of net assets
Automobiles & Components 1.3%
Dana Holding Corp.		256,593		0.2		5,534,711
Tenneco, Inc. *		92,336		0.2		5,397,039
Other Securities				0.9		22,917,049
				1.3		33,848,799
Banks 9.5%
Investors Bancorp, Inc.		540,591		0.2		6,400,597
MGIC Investment Corp. *		505,545		0.2		5,267,779
Prosperity Bancshares, Inc.		105,598		0.2		5,632,597
Other Securities				8.9		239,076,632
				9.5		256,377,605
Capital Goods 7.9%
Esterline Technologies Corp. *		48,500		0.2		5,397,565
HEICO Corp.		100,405		0.2		5,606,615
Teledyne Technologies, Inc. *		55,071		0.2		5,780,803
Other Securities				7.3		196,557,777
				7.9		213,342,760
Commercial & Professional Supplies 3.5%
Other Securities				3.5		95,315,347
Consumer Durables & Apparel 2.8%
Brunswick Corp.		138,886		0.3		6,949,855
Skechers U.S.A., Inc., Class A *		59,978		0.2		5,393,222
Other Securities				2.3		63,302,528
				2.8		75,645,605
Consumer Services 4.1%
Jack in the Box, Inc.		60,610		0.2		5,259,130
Vail Resorts, Inc.		54,371		0.2		5,394,147
Other Securities				3.7		101,043,659
				4.1		111,696,936
Diversified Financials 2.5%
Stifel Financial Corp. *		99,210		0.2		5,242,256
Other Securities				2.3		62,770,787
				2.5		68,013,043
Energy 3.9%
Diamondback Energy, Inc. *		66,371		0.2		5,480,254
SemGroup Corp., Class A		64,065		0.2		5,393,632
Other Securities				3.5		93,022,844
				3.9		103,896,730
Food & Staples Retailing 0.9%
Other Securities				0.9		25,056,548
Food, Beverage & Tobacco 1.8%
Other Securities				1.8		48,689,623
Health Care Equipment & Services 6.7%
DexCom, Inc. *		112,427		0.3		7,596,692
HealthSouth Corp.		131,800		0.2		5,959,996
STERIS Corp.		90,388		0.2		6,010,802
Team Health Holdings, Inc. *		106,058		0.3		6,317,875
West Pharmaceutical Services, Inc.		108,550		0.2		5,783,544
Other Securities				5.5		147,899,852
				6.7		179,568,761
Household & Personal Products 0.3%
Other Securities				0.3		8,812,156
Insurance 2.4%
CNO Financial Group, Inc.		310,268		0.2		5,274,556
First American Financial Corp.		159,700		0.2		5,555,963
Other Securities				2.0		54,271,678
				2.4		65,102,197
Materials 4.4%
Graphic Packaging Holding Co.		501,715		0.3		7,074,181
PolyOne Corp.		134,513		0.2		5,252,733
Other Securities				3.9		105,141,904
				4.4		117,468,818

28 See financial notes

 Schwab Small-Cap Index Fund

Condensed Portfolio Holdings (Unaudited) continued

	Number		% of Net		Value
Security	of Shares		Assets		($)
Media 1.4%
Other Securities				1.4		37,939,805
Pharmaceuticals, Biotechnology & Life Sciences 8.5%
Cepheid *		103,500		0.2		5,806,350
Dyax Corp. *		220,459		0.2		5,271,175
Isis Pharmaceuticals, Inc. *		179,200		0.4		10,164,224
PAREXEL International Corp. *		85,918		0.2		5,462,237
Puma Biotechnology, Inc. *		37,000		0.2		6,681,460
Other Securities				7.3		195,672,164
				8.5		229,057,610
Real Estate 9.2%
CubeSmart		247,243		0.2		5,703,896
Highwoods Properties, Inc.		138,207		0.2		5,948,429
LaSalle Hotel Properties		168,379		0.3		6,177,826
RLJ Lodging Trust		196,582		0.2		5,832,588
Other Securities				8.3		224,168,489
				9.2		247,831,228
Retailing 4.1%
Office Depot, Inc. *		802,829		0.3		7,402,083
Other Securities				3.8		101,951,584
				4.1		109,353,667
Semiconductors & Semiconductor Equipment 3.8%
Cypress Semiconductor Corp. *		498,453		0.3		6,639,394
Qorvo, Inc. *		216,428		0.5		14,264,769
Other Securities				3.0		81,745,178
				3.8		102,649,341
Software & Services 9.4%
Aspen Technology, Inc. *		139,457		0.2		6,190,496
Manhattan Associates, Inc. *		112,888		0.2		5,933,393
MAXIMUS, Inc.		102,237		0.2		6,544,190
SS&C Technologies Holdings, Inc.		102,700		0.2		6,179,459
The Ultimate Software Group, Inc. *		42,482		0.3		7,061,358
Tyler Technologies, Inc. *		49,952		0.2		6,091,646
Verint Systems, Inc. *		92,572		0.2		5,686,698
WEX, Inc. *		58,476		0.3		6,590,830
Other Securities				7.6		203,534,548
				9.4		253,812,618
Technology Hardware & Equipment 4.6%
Belden, Inc.		65,916		0.2		5,533,648
Cognex Corp. *		131,403		0.2		5,898,681
Other Securities				4.2		112,698,268
				4.6		124,130,597
Telecommunication Services 0.8%
Other Securities				0.8		20,412,725
Transportation 1.9%
JetBlue Airways Corp. *		395,414		0.3		8,117,849
Other Securities				1.6		43,897,954
				1.9		52,015,803
Utilities 3.5%
Dynegy, Inc. *		183,800		0.2		6,115,026
Other Securities				3.3		88,282,173
				3.5		94,397,199
Total Common Stock
(Cost $1,852,070,505)						2,674,435,521
Rights 0.0% of net assets
Automobiles & Components 0.0%
Other Securities				0.0		107,470
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Other Securities				0.0		—
Telecommunication Services 0.0%
Other Securities				0.0		213,444
Total Rights
(Cost $320,914)						320,914
Warrants 0.0% of net assets
Energy 0.0%
Other Securities				0.0		—
Total Warrants
(Cost $—)						—
Other Investment Company 4.3% of net assets
Securities Lending Collateral 4.3%
Wells Fargo Advantage Government Money Market Fund, Institutional Class 0.01% (d)		115,143,210		4.3		115,143,210
Total Other Investment Company
(Cost $115,143,210)						115,143,210
	Face
Security	Amount		% of Net		Value
Rate, Maturity Date	($)		Assets		($)
Short-Term Investment 0.7% of net assets
Time Deposit 0.7%
JPMorgan Chase Bank
0.03%, 05/01/15		20,490,679		0.7		20,490,679
Total Short-Term Investment
(Cost $20,490,679)						20,490,679
End of Investments.

See financial notes 29

 Schwab Small-Cap Index Fund

Condensed Portfolio Holdings (Unaudited) continued

At 04/30/15 tax basis cost of the fund’s investments was $1,996,452,668 and the unrealized appreciation and depreciation were $987,306,362 and ($173,368,706), respectively, with a net unrealized appreciation of $813,987,656.

For the following notes, please refer to the complete schedule of portfolio holdings.

*	Non-income producing security.
(a)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(b)	Illiquid security. At the period end, the value of these amounted to $320,914 or 0.0% of net assets.
(c)	All or a portion of this security is on loan. Securities on loan were valued at $109,679,654.
(d)	The rate shown is the 7-day yield.

CVR —	Contingent Value Rights
REIT —	Real Estate Investment Trust

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Depreciation
	Contracts		($)		($)
Futures Contracts
Russell 2000 Index, mini, Long, expires 06/19/15		150		18,246,000		(697,425	)

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

Assets Valuation Input

	Quoted Prices in					Significant
	Active Markets for			Other Significant		Unobservable
	Identical Assets			Observable Inputs		Inputs
Description	(Level 1)			(Level 2)		(Level 3)		Total
Common Stock1		$2,674,435,521			$—		$—		$2,674,435,521
Rights1		—			—		320,914		320,914
Warrants1		—			—		—		—
Other Investment Company1		115,143,210			—		—		115,143,210
Short-Term Investment1		—			20,490,679		—		20,490,679
Total		$2,789,578,731			$20,490,679		$320,914		$2,810,390,324
Liabilities Valuation Input
Other Financial Instruments
Futures Contracts2		($697,425	)		$—		$—		($697,425	)

1	As categorized in the complete schedule of portfolio holdings.
2	Futures contracts are not included in Investments in the schedule of condensed portfolio holdings and are valued at unrealized appreciation or depreciation.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Balance				Change in										Balance
	as of		Realized		Unrealized						Gross		Gross		as of
	October 31,		Gains		Appreciation		Gross		Gross		Transfers		Transfers		April 30,
Investments in Securities	2014		(Losses)		(Depreciation)		Purchases		Sales		in		out		2015
Rights		$320,914		$—		$—		$—		$—		$—		$—		$320,914
Total		$320,914		$—		$—		$—		$—		$—		$—		$320,914

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

30 See financial notes

 Schwab Small-Cap Index Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments, at value (cost $1,872,882,098) including securities on loan of $109,679,654		$2,695,247,114
Collateral invested for securities on loan, at value (cost $115,143,210)	+	115,143,210
Total investments, at value (cost $1,988,025,308)		2,810,390,324
Deposit with broker for futures contracts		1,759,500
Receivables:
Investments sold		630,208
Fund shares sold		6,115,174
Dividends		948,363
Income from securities on loan		494,568
Receivable from investment adviser		624
Interest		17
Prepaid expenses	+	15,726
Total assets		2,820,354,504
Liabilities
Collateral held for securities on loan		115,143,210
Payables:
Investments bought		7,674,381
Investment adviser and administrator fees		64,616
Shareholder service fees		11,951
Fund shares redeemed		576,507
Variation margin on futures contracts		412,068
Accrued expenses	+	178,831
Total liabilities		124,061,564
Net Assets
Total assets		2,820,354,504
Total liabilities	−	124,061,564
Net assets		$2,696,292,940
Net Assets by Source
Capital received from investors		1,843,802,396
Net investment income not yet distributed		10,826,715
Net realized capital gains		19,996,238
Net unrealized capital appreciation		821,667,591
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$2,696,292,940		98,365,192			$27.41

See financial notes 31

 Schwab Small-Cap Index Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends (net of foreign withholding taxes of $7,233)		$19,601,610
Interest		6,416
Securities on loan	+	2,733,341
Total investment income		22,341,367
Expenses
Investment adviser and administrator fees		1,951,341
Shareholder service fees		251,073
Index fee		166,666
Portfolio accounting fees		57,007
Shareholder reports		48,799
Transfer agent fees		31,334
Custodian fees		29,321
Registration fees		26,668
Professional fees		23,500
Independent trustees’ fees		8,929
Interest expense		525
Other expenses	+	33,341
Total expenses		2,628,504
Expense reduction by CSIM and its affiliates	−	416,459
Net expenses	−	2,212,045
Net investment income		20,129,322
Realized and Unrealized Gains (Losses)
Net realized gains on investments		24,797,951
Net realized gains on futures contracts		1,735,608
Net realized losses on foreign currency transactions	+	(180	)
Net realized gains		26,533,379
Net change in unrealized appreciation (depreciation) on investments		66,466,598
Net change in unrealized appreciation (depreciation) on futures contracts	+	(900,323	)
Net change in unrealized appreciation (depreciation)	+	65,566,275
Net realized and unrealized gains		92,099,654
Increase in net assets resulting from operations		$112,228,976

32 See financial notes

 Schwab Small-Cap Index Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$20,129,322			$31,769,876
Net realized gains		26,533,379			144,072,375
Net change in unrealized appreciation (depreciation)	+	65,566,275			15,102,446
Increase in net assets from operations		112,228,976			190,944,697
Distributions to Shareholders
Distributions from net investment income		(31,478,925	)		(26,168,327	)
Distributions from net realized gains	+	(140,885,597	)		(110,361,333	)
Total distributions		($172,364,522	)		($136,529,660	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			12,548,022		$345,662,442			19,513,159		$532,426,174
Shares reinvested			6,143,892		156,607,812			4,820,637		125,963,244
Shares redeemed	+		(11,558,576	)	(312,646,807	)		(18,247,583	)	(497,352,580	)
Net transactions in fund shares			7,133,338		$189,623,447			6,086,213		$161,036,838
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			91,231,854		$2,566,805,039			85,145,641		$2,351,353,164
Total increase	+		7,133,338		129,487,901			6,086,213		215,451,875
End of period			98,365,192		$2,696,292,940			91,231,854		$2,566,805,039
Net investment income not yet distributed					$10,826,715					$22,176,318

See financial notes 33

Schwab Total Stock Market Index Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		36.96			32.53			25.80			22.92			21.57			18.50
Income (loss) from investment operations:
Net investment income (loss)		0.38	1		0.60			0.57			0.47			0.41			0.37
Net realized and unrealized gains (losses)		1.28			4.49			6.70			2.83			1.33			3.02
Total from investment operations		1.66			5.09			7.27			3.30			1.74			3.39
Less distributions:
Distributions from net investment income		(0.61	)		(0.51	)		(0.54	)		(0.42	)		(0.39	)		(0.32	)
Distributions from net realized gains		(0.21	)		(0.15	)		—			—			—			—
Total distributions		(0.82	)		(0.66	)		(0.54	)		(0.42	)		(0.39	)		(0.32	)
Net asset value at end of period		37.80			36.96			32.53			25.80			22.92			21.57
Total return (%)		4.66	2		15.93			28.76			14.71			8.14			18.53
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		0.09	3		0.09			0.09			0.09			0.09			0.09
Gross operating expenses		0.10	3		0.10			0.10			0.10			0.11			0.11
Net investment income (loss)		2.06	3		1.79			2.02			2.02			1.79			1.85
Portfolio turnover rate		0	2,4		1			2			3			1			3
Net assets, end of period ($ x 1,000,000)		4,488			4,049			3,183			2,240			1,747			1,470

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

⁴ Less than 0.5%

34 See financial notes

 Schwab Total Stock Market Index Fund

Condensed Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows the fund’s 50 largest portfolio holdings in unaffiliated issuers, and any holdings exceeding 1% of the fund’s net assets as of the report date, and any affiliated issuers. The remaining securities held by the fund are grouped as “Other Securities” in each category. You can request a complete schedule of portfolio holdings as of the report date, free of charge, by calling Schwab Funds^® at 1-800-435-4000. This complete schedule, filed on the fund’s Form N-CSRS, is also available on the SEC’s website at www.sec.gov.

In addition, the fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15-20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.0%	Common Stock		2,747,125,132		4,442,966,253
	0	.0%	Rights		32,983		32,760
	0	.0%	Warrants		—		—
	0	.7%	Other Investment Company		32,064,921		32,064,921
	0	.8%	Short-Term Investment		33,950,307		33,950,307
	100	.5%	Total Investments		2,813,173,343		4,509,014,241
	(0	.5%)	Other Assets and Liabilities, Net				(21,097,103	)
	100	.0%	Net Assets				4,487,917,138

	Number		% of Net		Value
Security	of Shares		Assets		($)
Common Stock 99.0% of net assets
Automobiles & Components 1.2%
Other Securities				1.2		55,731,882
Banks 5.8%
Bank of America Corp.		2,035,501		0.7		32,425,531
Citigroup, Inc.		586,989		0.7		31,298,253
JPMorgan Chase & Co.		718,963		1.0		45,481,599
Wells Fargo & Co.		906,413		1.1		49,943,356
Other Securities				2.3		102,317,884
				5.8		261,466,623
Capital Goods 7.6%
3M Co.		122,357		0.4		19,135,411
General Electric Co.		1,946,712		1.2		52,716,961
The Boeing Co.		126,736		0.4		18,166,338
United Technologies Corp.		162,428		0.4		18,476,185
Other Securities				5.2		232,869,582
				7.6		341,364,477
Commercial & Professional Supplies 1.1%
Other Securities				1.1		47,094,262
Consumer Durables & Apparel 1.6%
Other Securities				1.6		71,370,794
Consumer Services 2.1%
McDonald’s Corp.		185,640		0.4		17,923,542
Other Securities				1.7		78,287,236
				2.1		96,210,778
Diversified Financials 4.6%
Berkshire Hathaway, Inc., Class B *		352,202		1.1		49,734,444
The Charles Schwab Corp. (a)		224,326		0.1		6,841,943
Other Securities				3.4		151,776,961
				4.6		208,353,348
Energy 7.8%
Chevron Corp.		363,323		0.9		40,350,652
Exxon Mobil Corp.		810,099		1.6		70,778,350
Schlumberger Ltd.		244,503		0.5		23,132,429
Other Securities				4.8		213,874,381
				7.8		348,135,812
Food & Staples Retailing 2.0%
CVS Health Corp.		216,837		0.5		21,529,746
Wal-Mart Stores, Inc.		305,489		0.5		23,843,416
Other Securities				1.0		45,669,566
				2.0		91,042,728
Food, Beverage & Tobacco 4.5%
Altria Group, Inc.		377,323		0.4		18,885,016
PepsiCo, Inc.		284,458		0.6		27,057,645
Philip Morris International, Inc.		299,709		0.6		25,016,710
The Coca-Cola Co.		756,214		0.7		30,672,040
Other Securities				2.2		100,125,587
				4.5		201,756,998
Health Care Equipment & Services 5.0%
Medtronic plc		277,088		0.5		20,629,202
UnitedHealth Group, Inc.		183,781		0.4		20,473,203
Other Securities				4.1		182,054,620
				5.0		223,157,025
Household & Personal Products 1.7%
The Procter & Gamble Co.		519,124		0.9		41,275,549
Other Securities				0.8		32,830,547
				1.7		74,106,096
Insurance 2.9%
Other Securities				2.9		130,904,352
Materials 3.5%
Other Securities				3.5		158,650,115
Media 3.5%
Comcast Corp., Class A		490,960		0.6		28,357,850
The Walt Disney Co.		301,939		0.7		32,826,808
Other Securities				2.2		97,361,399
				3.5		158,546,057

See financial notes 35

 Schwab Total Stock Market Index Fund

Condensed Portfolio Holdings (Unaudited) continued

	Number		% of Net		Value
Security	of Shares		Assets		($)
Pharmaceuticals, Biotechnology & Life Sciences 9.1%
AbbVie, Inc.		311,030		0.5		20,111,200
Actavis plc *		75,287		0.5		21,295,681
Amgen, Inc.		146,189		0.5		23,084,705
Bristol-Myers Squibb Co.		319,753		0.5		20,377,859
Gilead Sciences, Inc. *		288,692		0.6		29,016,433
Johnson & Johnson		537,909		1.2		53,360,573
Merck & Co., Inc.		549,716		0.7		32,741,085
Pfizer, Inc.		1,193,425		0.9		40,492,910
Other Securities				3.7		167,307,334
				9.1		407,787,780
Real Estate 4.0%
Other Securities				4.0		177,271,141
Retailing 4.6%
Amazon.com, Inc. *		73,425		0.7		30,969,196
The Home Depot, Inc.		254,163		0.6		27,190,358
Other Securities				3.3		147,552,372
				4.6		205,711,926
Semiconductors & Semiconductor Equipment 2.4%
Intel Corp.		924,297		0.7		30,085,867
Other Securities				1.7		77,442,886
				2.4		107,528,753
Software & Services 10.3%
Facebook, Inc., Class A *		406,707		0.7		32,036,310
Google, Inc., Class A *		55,476		0.7		30,443,565
Google, Inc., Class C *		55,227		0.7		29,675,775
International Business Machines Corp.		178,451		0.7		30,566,872
Microsoft Corp.		1,588,918		1.7		77,284,972
Oracle Corp.		616,713		0.6		26,901,021
Visa, Inc., Class A		375,804		0.5		24,821,854
Other Securities				4.7		212,216,652
				10.3		463,947,021
Technology Hardware & Equipment 6.3%
Apple, Inc.		1,126,662		3.2		141,001,749
Cisco Systems, Inc.		998,840		0.6		28,796,557
QUALCOMM, Inc.		318,639		0.5		21,667,452
Other Securities				2.0		91,303,298
				6.3		282,769,056
Telecommunication Services 2.1%
AT&T, Inc.		1,004,055		0.8		34,780,465
Verizon Communications, Inc.		803,169		0.9		40,511,844
Other Securities				0.4		17,642,223
				2.1		92,934,532
Transportation 2.3%
Union Pacific Corp.		169,870		0.4		18,045,290
Other Securities				1.9		83,241,235
				2.3		101,286,525
Utilities 3.0%
Other Securities				3.0		135,838,172
Total Common Stock
(Cost $2,747,125,132)						4,442,966,253
Rights 0.0% of net assets
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Other Securities				0.0		—
Technology Hardware & Equipment 0.0%
Other Securities				0.0		—
Telecommunication Services 0.0%
Other Securities				0.0		32,760
Total Rights
(Cost $32,983)						32,760
Warrants 0.0% of net assets
Energy 0.0%
Other Securities				0.0		—
Total Warrants
(Cost $—)						—
Other Investment Company 0.7% of net assets
Securities Lending Collateral 0.7%
Wells Fargo Advantage Government Money Market Fund, Institutional Class 0.01% (d)		32,064,921		0.7		32,064,921
Total Other Investment Company
(Cost $32,064,921)						32,064,921
	Face
Security	Amount		% of Net		Value
Rate, Maturity Date	($)		Assets		($)
Short-Term Investment 0.8% of net assets
Time Deposit 0.8%
JPMorgan Chase Bank
0.03%, 05/01/15		33,950,307		0.8		33,950,307
Total Short-Term Investment
(Cost $33,950,307)						33,950,307
End of Investments.

At 04/30/15 tax basis cost of the fund’s investments was $2,833,067,288 and the unrealized appreciation and depreciation were $1,761,111,256 and ($85,164,303), respectively, with a net unrealized appreciation of $1,675,946,953.

36 See financial notes

 Schwab Total Stock Market Index Fund

Condensed Portfolio Holdings (Unaudited) continued

For the following notes, please refer to the complete schedule of portfolio holdings.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.
(b)	Illiquid security. At the period end, the value of these amounted to $32,760 or 0.0% of net assets.
(c)	All or a portion of this security is on loan. Securities on loan were valued at $31,064,712.
(d)	The rate shown is the 7-day yield.
(e)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.

CVR —	Contingent Value Rights
REIT —	Real Estate Investment Trust

In addition to the above, the fund held the following at 04/30/15:

					Unrealized
			Contract		Appreciation
	Number of		Value		(Depreciation)
	Contracts		($)		($)
Futures Contracts
Russell 2000 Index, mini, Long, expires 06/19/15		45		5,473,800		(128,726	)
S&P 500 Index, e-mini, Long, expires 06/19/15		315		32,742,675		52,133
Net Unrealized Depreciation						(76,593	)

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

Assets Valuation Input

	Quoted Prices in					Significant
	Active Markets for			Other Significant		Unobservable
	Identical Assets			Observable Inputs		Inputs
Description	(Level 1)			(Level 2)		(Level 3)		Total
Common Stock1		$4,442,966,253			$—		$—		$4,442,966,253
Rights1		—			—		32,760		32,760
Warrants1		—			—		—		—
Other Investment Company1		32,064,921			—		—		32,064,921
Short-Term Investment1		—			33,950,307		—		33,950,307
Total		$4,475,031,174			$33,950,307		$32,760		$4,509,014,241
Other Financial Instruments
Futures Contracts2		$52,133			$—		$—		$52,133
Liabilities Valuation Input
Other Financial Instruments
Futures Contracts2		($128,726	)		$—		$—		($128,726	)

1	As categorized in the complete schedule of portfolio holdings.
2	Futures contracts are not included in Investments in the schedule of condensed portfolio holdings and are valued at unrealized appreciation or depreciation.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Balance				Change in										Balance
	as of		Realized		Unrealized						Gross		Gross		as of
	October 31,		Gains		Appreciation		Gross		Gross		Transfers		Transfers		April 30,
Investments in Securities	2014		(Losses)		(Depreciation)		Purchases		Sales		in		out		2015
Rights		$32,760		$—		$—		$—		$—		$—		$—		$32,760
Total		$32,760		$—		$—		$—		$—		$—		$—		$32,760

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 37

 Schwab Total Stock Market Index Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated issuers, at value (cost $4,581,323)		$6,841,943
Investments in unaffiliated issuers, at value (cost $2,776,527,099) including securities on loan of $31,064,712		4,470,107,377
Collateral invested for securities on loan, at value (cost $32,064,921)	+	32,064,921
Total investments, at value (cost $2,813,173,343)		4,509,014,241
Deposit with broker for futures contracts		2,307,000
Receivables:
Fund shares sold		8,453,863
Dividends		3,594,251
Income from securities on loan		93,314
Interest		28
Prepaid expenses	+	16,494
Total assets		4,523,479,191
Liabilities
Collateral held for securities on loan		32,064,921
Payables:
Investment adviser and administrator fees		41,548
Shareholder service fees		16,717
Fund shares redeemed		2,692,845
Variation margin on futures contracts		322,258
Due to custodian		172,775
Accrued expenses	+	250,989
Total liabilities		35,562,053
Net Assets
Total assets		4,523,479,191
Total liabilities	−	35,562,053
Net assets		$4,487,917,138
Net Assets by Source
Capital received from investors		2,750,502,697
Net investment income not yet distributed		29,763,507
Net realized capital gains		11,886,629
Net unrealized capital appreciation		1,695,764,305
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$4,487,917,138		118,720,576			$37.80

38 See financial notes

 Schwab Total Stock Market Index Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated issuer		$25,371
Dividends received from unaffiliated issuers (net of foreign withholding taxes of $5,035)		45,366,229
Interest		9,041
Securities on loan	+	536,947
Total investment income		45,937,588
Expenses
Investment adviser and administrator fees		1,280,180
Shareholder service fees		408,574
Index fee		188,151
Portfolio accounting fees		75,030
Shareholder reports		53,947
Transfer agent fees		52,341
Registration fees		40,740
Custodian fees		38,889
Professional fees		25,006
Independent trustees’ fees		12,415
Other expenses	+	42,776
Total expenses		2,218,049
Expense reduction by CSIM and its affiliates	−	297,778
Net expenses	−	1,920,271
Net investment income		44,017,317
Realized and Unrealized Gains (Losses)
Net realized gains on unaffiliated investments		28,807,610
Net realized gains on futures contracts	+	5,215,684
Net realized gains		34,023,294
Net change in unrealized appreciation (depreciation) on affiliated issuer		379,815
Net change in unrealized appreciation (depreciation) on unaffiliated investments		117,681,640
Net change in unrealized appreciation (depreciation) on futures contracts	+	(2,309,934	)
Net change in unrealized appreciation (depreciation)	+	115,751,521
Net realized and unrealized gains		149,774,815
Increase in net assets resulting from operations		$193,792,132

See financial notes 39

 Schwab Total Stock Market Index Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$44,017,317			$64,653,328
Net realized gains		34,023,294			17,885,455
Net change in unrealized appreciation (depreciation)	+	115,751,521			449,857,647
Increase in net assets from operations		193,792,132			532,396,430
Distributions to Shareholders
Distributions from net investment income		(68,099,121	)		(50,022,427	)
Distributions from net realized gains	+	(23,418,312	)		(14,754,888	)
Total distributions		($91,517,433	)		($64,777,315	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			14,840,557		$553,175,323			24,674,667		$847,448,914
Shares reinvested			2,076,130		73,370,427			1,621,857		52,337,326
Shares redeemed	+		(7,752,971	)	(290,138,878	)		(14,599,314	)	(501,556,679	)
Net transactions in fund shares			9,163,716		$336,406,872			11,697,210		$398,229,561
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			109,556,860		$4,049,235,567			97,859,650		$3,183,386,891
Total increase	+		9,163,716		438,681,571			11,697,210		865,848,676
End of period			118,720,576		$4,487,917,138			109,556,860		$4,049,235,567
Net investment income not yet distributed					$29,763,507					$53,845,311

40 See financial notes

Schwab International Index Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		19.42			19.92			16.32			16.02			17.31			16.26
Income (loss) from investment operations:
Net investment income (loss)		0.27	1		0.64			0.49			0.57			0.57			0.48
Net realized and unrealized gains (losses)		0.74			(0.63	)		3.69			0.33			(1.38	)		1.01
Total from investment operations		1.01			0.01			4.18			0.90			(0.81	)		1.49
Less distributions:
Distributions from net investment income		(0.61	)		(0.51	)		(0.58	)		(0.60	)		(0.48	)		(0.44	)
Net asset value at end of period		19.82			19.42			19.92			16.32			16.02			17.31
Total return (%)		5.55	2		0.09			26.40			6.07			(4.83	)		9.31
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		0.19	3		0.19			0.19			0.19			0.19			0.19
Gross operating expenses		0.23	3		0.23			0.23			0.23			0.21			0.22
Net investment income (loss)		2.87	3		3.42			2.88			3.66			3.26			2.88
Portfolio turnover rate		7	2		2			5			31	4		10			13
Net assets, end of period ($ x 1,000,000)		2,904			2,699			2,205			1,415			1,375			1,471

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

⁴ Portfolio turnover rate increase was mainly the result of trading activities in connection with the change in primary benchmark index effective December 20, 2011.

See financial notes 41

 Schwab International Index Fund

Condensed Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows the fund’s 50 largest portfolio holdings in unaffiliated issuers, and any holdings exceeding 1% of the fund’s net assets as of the report date, and any affiliated issuers. The remaining securities held by the fund are grouped as “Other Securities” in each category. You can request a complete schedule of portfolio holdings as of the report date, free of charge, by calling Schwab Funds^® at 1-800-435-4000. This complete schedule, filed on the fund’s Form N-CSRS, is also available on the SEC’s website at www.sec.gov.

In addition, the fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15-20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	98	.0%	Common Stock		2,224,135,874		2,846,224,974
	0	.7%	Preferred Stock		13,594,358		18,874,721
	0	.0%	Rights		469,760		484,642
	1	.1%	Other Investment Company		32,768,230		32,768,230
	0	.7%	Short-Term Investments		20,709,213		20,709,213
	100	.5%	Total Investments		2,291,677,435		2,919,061,780
	(0	.5%)	Other Assets and Liabilities, Net				(15,064,910	)
	100	.0%	Net Assets				2,903,996,870

	Number		% of Net		Value
Security	of Shares		Assets		($)
Common Stock 98.0% of net assets
Australia 7.1%
Australia & New Zealand Banking Group Ltd.		587,120		0.5		15,710,072
BHP Billiton Ltd.		682,458		0.6		17,427,501
Commonwealth Bank of Australia		344,325		0.8		24,101,706
National Australia Bank Ltd.		504,572		0.5		14,610,068
Westpac Banking Corp.		660,287		0.7		18,970,487
Other Securities				4.0		114,762,151
				7.1		205,581,985
Austria 0.2%
Other Securities				0.2		5,902,479
Belgium 1.3%
Anheuser-Busch InBev N.V.		171,093		0.7		20,830,278
Other Securities				0.6		15,881,578
				1.3		36,711,856
Denmark 1.7%
Novo Nordisk A/S, Class B		427,392		0.8		23,994,074
Other Securities				0.9		24,024,191
				1.7		48,018,265
Finland 0.8%
Other Securities				0.8		23,337,952
France 9.7%
BNP Paribas S.A.		225,919		0.5		14,267,072
Sanofi		254,094		0.9		25,864,332
Total S.A.		456,145		0.8		24,700,229
Other Securities				7.5		217,418,512
				9.7		282,250,145
Germany 8.3%
Allianz SE - Reg’d		97,231		0.5		16,550,139
BASF SE		195,854		0.7		19,457,706
Bayer AG - Reg’d		176,066		0.9		25,341,634
Daimler AG - Reg’d		204,846		0.7		19,695,261
Deutsche Telekom AG - Reg’d		677,109		0.4		12,445,704
SAP SE		196,678		0.5		14,861,972
Siemens AG - Reg’d		169,096		0.6		18,394,584
Other Securities				4.0		115,791,501
				8.3		242,538,501
Hong Kong 3.3%
AIA Group Ltd.		2,575,000		0.6		17,124,971
Other Securities				2.7		77,503,411
				3.3		94,628,382
Ireland 0.3%
Other Securities				0.3		9,954,835
Israel 0.5%
Other Securities				0.5		15,986,781
Italy 2.3%
Other Securities				2.3		66,547,220
Japan 21.9%
Mitsubishi UFJ Financial Group, Inc.		2,715,809		0.7		19,294,057
SoftBank Corp.		204,900		0.4		12,808,361
Sumitomo Mitsui Financial Group, Inc.		271,446		0.4		11,852,577
Toyota Motor Corp.		581,803		1.4		40,498,795
Other Securities				19.0		550,654,406
				21.9		635,108,196
Netherlands 2.7%
ING Groep N.V. CVA *		825,158		0.5		12,659,194
Unilever N.V. CVA		346,859		0.5		15,130,197
Other Securities				1.7		50,070,413
				2.7		77,859,804
New Zealand 0.1%
Other Securities				0.1		3,984,444
Norway 0.7%
Other Securities				0.7		19,458,404

42 See financial notes

 Schwab International Index Fund

Condensed Portfolio Holdings (Unaudited) continued

	Number		% of Net		Value
Security	of Shares		Assets		($)
Portugal 0.1%
Other Securities				0.1		4,430,882
Singapore 1.5%
Other Securities				1.5		42,524,793
Spain 3.5%
Banco Bilbao Vizcaya Argentaria S.A.		1,350,658		0.5		13,571,516
Banco Santander S.A.		2,995,632		0.8		22,648,680
Telefonica S.A.		952,175		0.5		14,492,521
Other Securities				1.7		50,758,989
				3.5		101,471,706
Sweden 3.0%
Other Securities				3.0		86,080,337
Switzerland 9.0%
Nestle S.A. - Reg’d		686,561		1.8		53,266,294
Novartis AG - Reg’d		489,732		1.7		49,987,982
Roche Holding AG		149,591		1.5		42,806,227
UBS Group AG *		780,354		0.5		15,589,388
Other Securities				3.5		101,150,674
				9.0		262,800,565
United Kingdom 20.0%
AstraZeneca plc		268,805		0.6		18,447,170
Barclays plc		3,512,415		0.5		13,742,147
BG Group plc		727,105		0.5		13,170,446
BP plc		3,887,502		1.0		28,038,199
British American Tobacco plc		397,542		0.7		21,842,380
BT Group plc		1,742,899		0.4		12,155,995
Diageo plc		535,827		0.5		14,875,821
GlaxoSmithKline plc		1,034,317		0.8		23,889,275
HSBC Holdings plc		4,078,664		1.4		40,743,804
Lloyds Banking Group plc		12,140,871		0.5		14,378,150
Prudential plc		546,837		0.5		13,614,885
Reckitt Benckiser Group plc		137,655		0.4		12,251,897
Rio Tinto plc		270,648		0.4		12,111,783
Royal Dutch Shell plc, A Shares		836,285		0.9		26,368,262
Royal Dutch Shell plc, B Shares		515,661		0.6		16,509,294
Unilever plc		273,177		0.4		11,974,563
Vodafone Group plc		5,637,712		0.7		19,862,821
Other Securities				9.2		267,070,550
				20.0		581,047,442
Total Common Stock
(Cost $2,224,135,874)						2,846,224,974
Preferred Stock 0.7% of net assets
Germany 0.7%
Other Securities				0.7		18,150,319
Italy 0.0%
Other Securities				0.0		637,865
United Kingdom 0.0%
Other Securities				0.0		86,537
Total Preferred Stock
(Cost $13,594,358)						18,874,721
Rights 0.0% of net assets
Italy 0.0%
Other Securities				0.0		—
Spain 0.0%
Other Securities				0.0		484,642
Total Rights
(Cost $469,760)						484,642
Other Investment Company 1.1% of net assets
United States 1.1%
Securities Lending Collateral 1.1%
Wells Fargo Advantage Government Money Market Fund, Institutional Class 0.01% (d)		32,768,230		1.1		32,768,230
Total Other Investment Company
(Cost $32,768,230)						32,768,230
	Face
Security	Amount		% of Net		Value
Rate, Maturity Date	($)		Assets		($)
Short-Term Investments 0.7% of net assets
Time Deposits 0.7%
JPMorgan Chase Bank
0.03%, 05/01/15		16,488,617		0.6		16,488,617
Other Securities				0.1		4,220,596
				0.7
Total Short-Term Investments
(Cost $20,709,213)						20,709,213
End of Investments.

See financial notes 43

 Schwab International Index Fund

Condensed Portfolio Holdings (Unaudited) continued

At 04/30/15, the tax basis cost of the fund’s investments was $2,300,699,841 and the unrealized appreciation and depreciation were $732,405,611 and ($114,043,672), respectively, with a net unrealized appreciation of $618,361,939.

At 04/30/15, the values of certain foreign securities held by the fund aggregating $2,847,108,705 were adjusted from their closing market values in accordance with international fair valuation procedures approved by the fund’s Board of Trustees. (See financial note 2(a) for additional information).

For the following notes, please refer to the complete schedule of portfolio holdings.

*	Non-income producing security.
(a)	All or a portion of this security is on loan. Securities on loan were valued at $30,774,448.
(b)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(c)	Illiquid security. At the period end, the value of these amounted to $86,537 or 0.0% of net assets.
(d)	The rate shown is the 7-day yield.

CDI —	CHESS Depositary Interest
CVA —	Dutch Certificate
Reg’d —	Registered
REIT —	Real Estate Investment Trust
RSP —	Risparmio (Convertible Savings Shares)
SDR —	Swedish Depositary Receipt

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Depreciation
	Contracts		($)		($)
Futures Contracts
MSCI EAFE, e-mini, Long, expires 06/19/15		210		19,889,100		(103,717	)

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

Assets Valuation Input

	Quoted Prices in					Significant
	Active Markets for			Other Significant		Unobservable
	Identical Assets			Observable Inputs		Inputs
Description	(Level 1)			(Level 2)		(Level 3)		Total
Common Stock1		$—			$1,570,884,449		$—		$1,570,884,449
Denmark		406,136			47,612,129		—		48,018,265
France		3,415,119			278,835,026		—		282,250,145
Hong Kong		7,099,791			87,528,591		—		94,628,382
Netherlands		2,815,368			75,044,436		—		77,859,804
New Zealand		292,831			3,338,339		353,274		3,984,444
Spain		1,229,267			100,242,439		—		101,471,706
Sweden		1,342,466			84,737,871		—		86,080,337
United Kingdom		950,201			580,097,241		—		581,047,442
Preferred Stock1		—			18,788,184		—		18,788,184
United Kingdom		—			—		86,537		86,537
Rights
Italy		—			—		—		—
Spain		7,209			—		477,433		484,642
Other Investment Company1		32,768,230			—		—		32,768,230
Short-Term Investments1		—			20,709,213		—		20,709,213
Total		$50,326,618			$2,867,817,918		$917,244		$2,919,061,780
Liabilities Valuation Input
Other Financial Instruments
Futures Contracts2		($103,717	)		$—		$—		($103,717	)

1	As categorized in the complete schedule of portfolio holdings.
2	Futures contracts are not included in Investments in the schedule of condensed portfolio holdings and are valued at unrealized appreciation or depreciation.

44 See financial notes

 Schwab International Index Fund

Condensed Portfolio Holdings (Unaudited) continued

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Balance				Change in											Balance
	as of		Realized		Unrealized							Gross		Gross		as of
	October 31,		Gains		Appreciation		Gross		Gross			Transfers		Transfers		April 30,
Investments in Securities	2014		(Losses)		(Depreciation)		Purchases		Sales			in		out		2015
Common Stock
New Zealand		$—		$—		$49,235		$304,039		$—			$—		$—		$353,274
Preferred Stock
United Kingdom		54,362		—		1,934		84,787		(54,546	)		—		—		86,537
Rights
Spain		—		—		14,946		462,487		—			—		—		477,433
Total		$54,362		$—		$66,115		$851,313		($54,546	)		$—		$—		$917,244

All net realized and change in unrealized gains (losses) in the table above are reflected on the accompanying Statement of Operations. The change in net unrealized appreciation (depreciation) for Level 3 investments held by the fund at April 30, 2015 was $65,931.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were security transfers in the amount of $13,334,134 and $9,675,344 from Level 1 to Level 2 and from Level 2 to Level 1, respectively, for the period ended April 30, 2015. The transfers between Level 1 and Level 2 were primarily due to the use of international fair valuation by the fund. There were no transfers in or out of Level 3 during the period.

See financial notes 45

 Schwab International Index Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments, at value (cost $2,258,909,205) including securities on loan of $30,774,448		$2,886,293,550
Collateral invested for securities on loan, at value (cost $32,768,230)	+	32,768,230
Total investments, at value (cost $2,291,677,435)		2,919,061,780
Foreign currency, at value (cost $4,907)		4,909
Deposit with broker for futures contracts		2,095,500
Receivables:
Dividends		9,877,419
Fund shares sold		5,132,105
Foreign tax reclaims		2,885,932
Income from securities on loan		213,611
Interest		13
Prepaid expenses	+	19,334
Total assets		2,939,290,603
Liabilities
Collateral held for securities on loan		32,768,230
Payables:
Investments bought		538,014
Investment adviser and administrator fees		67,056
Shareholder service fees		13,222
Fund shares redeemed		1,426,936
Variation margin on futures contracts		241,500
Accrued expenses	+	238,775
Total liabilities		35,293,733
Net Assets
Total assets		2,939,290,603
Total liabilities	−	35,293,733
Net assets		$2,903,996,870
Net Assets by Source
Capital received from investors		2,339,944,560
Net investment income not yet distributed		13,363,742
Net realized capital losses		(76,632,570	)
Net unrealized capital appreciation		627,321,138
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$2,903,996,870		146,508,841			$19.82

46 See financial notes

 Schwab International Index Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends (net of foreign withholding taxes of $3,469,323)		$39,589,745
Interest		16,949
Securities on loan	+	614,607
Total investment income		40,221,301
Expenses
Investment adviser and administrator fees		1,973,840
Shareholder service fees		253,316
Custodian fees		248,694
Index fee		232,366
Portfolio accounting fees		63,300
Shareholder reports		46,105
Registration fees		40,066
Transfer agent fees		32,167
Professional fees		26,643
Independent trustees’ fees		9,119
Interest expense		476
Other expenses	+	49,353
Total expenses		2,975,445
Expense reduction by CSIM and its affiliates	−	474,772
Net expenses	−	2,500,673
Net investment income		37,720,628
Realized and Unrealized Gains (Losses)
Net realized losses on investments		(49,696,370	)
Net realized losses on futures contracts		(1,596,499	)
Net realized losses on foreign currency transactions	+	(822,742	)
Net realized losses		(52,115,611	)
Net change in unrealized appreciation (depreciation) on investments		149,648,054
Net change in unrealized appreciation (depreciation) on futures contracts		(3,716,306	)
Net change in unrealized appreciation (depreciation) on foreign currency translations	+	290,436
Net change in unrealized appreciation (depreciation)	+	146,222,184
Net realized and unrealized gains		94,106,573
Increase in net assets resulting from operations		$131,827,201

See financial notes 47

 Schwab International Index Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$37,720,628			$84,259,509
Net realized gains (losses)		(52,115,611	)		4,104,131
Net change in unrealized appreciation (depreciation)	+	146,222,184			(94,041,773	)
Increase (Decrease) in net assets from operations		131,827,201			(5,678,133	)
Distributions to Shareholders
Distributions from net investment income		($87,032,492	)		($56,954,638	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			32,346,189		$615,245,744			42,892,587		$850,934,554
Shares reinvested			4,061,536		72,539,032			2,686,474		50,828,092
Shares redeemed	+		(28,883,545	)	(527,728,645	)		(17,254,418	)	(344,646,661	)
Net transactions in fund shares			7,524,180		$160,056,131			28,324,643		$557,115,985
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			138,984,661		$2,699,146,030			110,660,018		$2,204,662,816
Total increase	+		7,524,180		204,850,840			28,324,643		494,483,214
End of period			146,508,841		$2,903,996,870			138,984,661		$2,699,146,030
Net investment income not yet distributed					$13,363,742					$62,675,606

48 See financial notes

 Schwab Equity Index Funds

Financial Notes, unaudited

1. Business Structure of the Funds:

Each of the funds in this report is a series of Schwab Capital Trust, except Schwab 1000 Index Fund, which is a series of Schwab Investments. Both Schwab Capital Trust and Schwab Investments (the “trusts”) are no-load, open-end management investment companies. Each 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 trusts as of the end of the period, including the funds discussed in this report, which are highlighted:

Schwab Capital Trust (organized May 7, 1993)	Schwab Target 2035 Fund
Schwab S&P 500 Index Fund	Schwab Target 2040 Fund
Schwab Small-Cap Index Fund	Schwab Target 2045 Fund
Schwab Total Stock Market Index Fund	Schwab Target 2050 Fund
Schwab International Index Fund	Schwab Target 2055 Fund
Schwab MarketTrack All Equity Portfolio	Schwab Fundamental US Large Company Index Fund
Schwab MarketTrack Growth Portfolio	Schwab Fundamental US Small Company Index Fund
Schwab MarketTrack Balanced Portfolio	Schwab Fundamental International Large Company Index Fund
Schwab MarketTrack Conservative Portfolio	Schwab Fundamental International Small Company Index Fund
Laudus Small-Cap MarketMasters Fund	Schwab Fundamental Emerging Markets Large Company Index Fund
Laudus International MarketMasters Fund	Schwab Fundamental Global Real Estate Index Fund
Schwab Balanced Fund	Schwab Monthly Income Fund – Moderate Payout
Schwab Core Equity Fund	Schwab Monthly Income Fund – Enhanced Payout
Schwab Dividend Equity Fund	Schwab Monthly Income Fund – Maximum Payout
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund	Schwab Investments (organized October 26, 1990)
Schwab Hedged Equity Fund	Schwab 1000 Index Fund
Schwab Financial Services Fund	Schwab Short-Term Bond Market Fund
Schwab Health Care Fund	Schwab Intermediate-Term Bond Fund
Schwab International Core Equity Fund	Schwab Total Bond Market Fund
Schwab Target 2010 Fund	Schwab GNMA Fund
Schwab Target 2015 Fund	Schwab Treasury Inflation Protected Securities Index Fund
Schwab Target 2020 Fund	Schwab Tax-Free Bond Fund
Schwab Target 2025 Fund	Schwab California Tax-Free Bond Fund
Schwab Target 2030 Fund	Schwab Global Real Estate Fund

Each fund in this report offers one share class. Shares are bought and sold (subject to a redemption fee, see financial note 9) 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 Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The funds invest in certain other investment companies (“underlying funds”). For specific investments in underlying funds, please refer to the complete schedule of portfolio holdings on Form N-CSRS, which is filed with the U.S. Securities and Exchange Commission (“SEC”). For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the SEC.

(a) Security Valuation:

Under procedures approved by the Board, the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair market value. Among other things, these procedures allow the funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

49

 Schwab Equity Index Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:

•  Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at halfway between the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.

•  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.

•  Foreign equity security fair valuation: The Board has adopted procedures to fair value foreign equity securities that are traded in markets that close prior to a fund valuing its holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, each fund seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter “arbitrage” market timers, who seek to exploit delays between the change in the value of a fund’s portfolio holdings and the NAV of the fund’s shares, and seeks to help ensure that the prices at which the fund’s shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of a fund and that of its comparative index or benchmark. The Board regularly reviews fair value determinations made by the funds pursuant to these procedures.

•  Futures contracts: Futures contracts are valued at their settlement prices as of the close of their exchanges.

•  Short-term securities (60 days or less to maturity): A short-term security may be valued at its amortized cost when it approximates the security’s market value.

•  Underlying funds: Mutual funds are valued at their respective NAVs. Exchange traded funds (“ETFs”) traded on a recognized securities exchange are valued at the last reported sale price that day or the official closing price, if applicable.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the funds disclose the fair value of their investments in a hierarchy that prioritizes the significant inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If the funds determine that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

The three levels of the fair value hierarchy are as follows:

•  Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities, ETFs and futures contracts. Investments in mutual funds are valued daily at their NAVs, and investments in ETFs are valued daily at

50 

 Schwab Equity Index Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

the last reported sale price or the official closing price, which are classified as Level 1 prices, without consideration to the classification level of the specific investments held by an underlying fund.

•  Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. In addition, international securities whose markets close hours before the funds value their holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board has approved a vendor that calculates fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

•  Level 3 — significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and 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 April 30, 2015 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 market value may change daily.

Securities Lending: Under the trust’s Securities Lending Program, a fund (lender) may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating under Rule 2a-7 of the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allows the funds to terminate any loans at any given time. Securities lending income, as disclosed in each fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. A fund retains the right to recall a security on loan. The aggregate market value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan (at market value computed at the time of the

51

 Schwab Equity Index Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

loan). Total costs and expenses, including agent fees associated with securities lending activities under the trust’s Securities Lending Program paid to the unaffiliated lending agent are approximately 15% of the gross lending revenues.

The value of the securities on loan and the related collateral as of April 30, 2015, if any, are disclosed in each fund’s Portfolio Holdings. The value of the securities on loan and the investments of cash collateral are also disclosed in each fund’s Statement of Assets and Liabilities.

(c) Security Transactions:

Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.

Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the differences between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. These realized and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations in the Statement of Operations. The funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Gains realized by the funds on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. In those instances, the funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.

When a fund closes out a futures contract position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.

(d) Investment Income:

Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the day they learn of the ex-dividend date. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.

Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.

(e) Expenses:

Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to all funds within the trust generally are allocated among the funds in proportion to their average daily net assets.

(f) Distributions to Shareholders:

The funds make distributions from net investment income and net realized capital gains, if any, once a year.

(g) Custody Credit:

Certain funds have an arrangement with their custodian bank, State Street Bank and Trust Company (“State Street”), under which the funds may receive a credit for their uninvested cash balance to offset their custody fees and accounting fees. The credit amounts, if any, are disclosed in the Statement of Operations as a reduction to a fund’s operating expenses.

52 

 Schwab Equity Index Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(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. Accordingly, the funds distribute substantially all of their net investment income and realized net 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) Foreign Taxes:

The funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges and capital gains on investments. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in foreign markets in which the funds invest. These foreign taxes, if any, are paid by the funds and are disclosed in the Statement of Operations. Foreign taxes payable as of April 30, 2015, if any, are reflected in each fund’s Statement of Assets and Liabilities.

(k) 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.

(l) New Accounting Pronouncements:

In June 2014, Accounting Standards Update (“ASU”) No. 2014-11, Topic 860 Transfers and Servicing — Repurchase-to-Maturity Transactions, Repurchase Financings and Disclosures, was issued and is effective for interim periods beginning after 3/15/15 and annual periods beginning after December 15, 2014. The ASU modifies accounting guidance and enhances disclosure requirements for repurchase agreement and securities lending transactions. Management is currently evaluating the impact the adoption of ASU 2014-11 may have on the funds’ financial statement disclosures.

3. Risk Factors:

Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.

Market Risk. Equity markets rise and fall daily. As with any investment whose performance is tied to these markets, the value of the investment in a fund will fluctuate, which means that investors could lose money.

Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

Tracking Error Risk. As an index fund, each fund seeks to track the performance of its comparative index, although it may not be successful in doing so. The divergence between the performance of a fund and its index, positive or negative, is called “tracking error”. Tracking error can be caused by many factors and it may be significant. For example, a fund may not invest in certain securities in the index, or match the securities’ weightings to the index, due to regulatory, operational, custodial or liquidity constraints; corporate transactions; asset valuations; transaction costs and timing; tax considerations; and index rebalancing, which may result in tracking error.

Investment Style Risk. Each fund invests in companies measured by its respective index. It follows these stocks during upturns as well as downturns. Because of its indexing strategy, a fund does not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of a fund’s expenses, a fund’s performance may be below that of the index.

53

 Schwab Equity Index Funds

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

A significant percentage of an index may be composed of securities in a single industry or sector of the economy. If a fund is focused in an industry or sector, it may present more risks than if it were broadly diversified over numerous industries and sectors of the economy.

Sampling Index Tracking Risk. If a fund uses a sampling method, the fund will not fully replicate its comparative index and may hold securities not included in the index. As a result, the fund will be 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. If a 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 its benchmark index.

Concentration Risk. To the extent that a fund’s or an index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector, country, or asset class, the fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector, country, or asset class.

Small-Cap Risk. Historically, small-cap stocks have been riskier than large- and mid-cap stocks. Stock prices of smaller companies may be based in substantial part on future expectations rather than current achievements and may move sharply, especially during market upturns and downturns. Small-cap companies themselves may be more vulnerable to adverse business or economic events than larger, more established companies. During a period when small-cap stocks fall behind other types of investments — bonds or large-cap stocks, for instance — a fund’s performance also will lag those investments.

Large- and Mid-Cap Risk. Both large- and mid-cap stocks tend to go in and out of favor based on market and economic conditions. However, stocks of mid-cap companies tend to be more volatile than those of large-cap companies because mid-cap companies tend to be more susceptible to adverse business or economic events than larger more established companies. During a period when large- and mid-cap U.S. stocks fall behind other types of investments — bonds or small-cap stocks, for instance — a fund’s performance also will lag those investments.

Foreign Investment Risk. A fund’s investments in securities of foreign issuers may involve certain risks that are greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of a fund’s investments, and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategies.

Geographic Risk. To the extent a fund’s investments in a single country or a limited number of countries represent a higher percentage of the fund’s assets, the fund assumes the risk that economic, political and social conditions in those countries will have a significant impact on its investment performance and it may be subject to increased price volatility.

Derivatives Risk. A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as liquidity risk and market risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to credit risk, leverage risk, 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. Credit risk is the risk that the counterparty to a derivatives transaction may not fulfill its obligations. Leverage risk is the risk that a small percentage of assets invested in derivatives can have a disproportionately larger impact on a fund. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause a fund to realize higher amounts of short-term capital gain. These risks could cause a fund to lose more than the principal amount invested.

Liquidity Risk. A particular investment may be difficult to purchase or sell. A fund may be unable to sell illiquid securities at an advantageous time or price.

Security Lending Risk. Securities lending involves the risk of loss of rights in the collateral or delay in recovery of the collateral if the borrower fails to return the security loaned or becomes insolvent.

Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.

54 

 Schwab Equity Index Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions:

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 CSIM and each trust.

For its advisory and administrative services to the Schwab 1000 Index Fund, CSIM is entitled to receive an annual fee, payable monthly, based on a percentage of the fund’s average daily net assets as follows:

	Schwab
	1000
% of Average Daily Net Assets	Index Fund
First $500 million		0.30%
$500 million to $5 billion		0.22%
$5 billion to $10 billion		0.20%
Over $10 billion		0.18%

For its advisory and administrative services to the other funds discussed in this report, CSIM is entitled to receive an annual fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:

				Schwab
Schwab		Schwab		Total Stock		Schwab
S&P 500		Small-Cap		Market		International
Index Fund		Index Fund		Index Fund		Index Fund
	0.06%		0.15%		0.06%		0.15%

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 service providers, including Charles Schwab & Co., Inc. (a broker-dealer affiliate of CSIM, “Schwab”), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the funds. Schwab serves as the funds’ paying agent under the Plan for making payments of the shareholder service fee due to the service providers (other than Schwab) under the Plan. All shareholder service fees paid by the funds to Schwab in its capacity as the funds’ paying agent will be passed through to the service providers, and Schwab will not retain any portion of such fees.

Pursuant to the Plan, each fund’s shares are subject to an annual shareholder servicing fee up to the amount set forth in the table below. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab (or, in the case of payments made to Schwab, pursuant to Schwab’s written agreement with the funds). Payments under the Plan are made as described above regardless of Schwab’s or the service provider’s actual cost of providing the services. If the cost of providing the services under the Plan is less than the payments received, the unexpended portion of the fees may be retained as profit by Schwab or the service provider.

						Schwab
Schwab		Schwab		Schwab		Total Stock		Schwab
S&P 500		1000		Small-Cap		Market		International
Index Fund		Index Fund		Index Fund		Index Fund		Index Fund
	0.02%		0.10%		0.02%		0.02%		0.02%

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”). The expense limitation as a percentage of average daily net assets is as follows:

						Schwab
Schwab		Schwab		Schwab		Total Stock		Schwab
S&P 500		1000		Small-Cap		Market		International
Index Fund		Index Fund		Index Fund		Index Fund		Index Fund
	0.09%		0.29%		0.17%		0.09%		0.19%

55

 Schwab Equity Index Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

The funds may engage in certain transactions involving affiliates. For instance, a fund may own shares of The Charles Schwab Corporation if that company is included in its index. The table below shows funds with investment activities involving The Charles Schwab Corporation shares during the report period:

	Balance							Balance				Realized		Dividends
	of Shares							of Shares		Market		Gains (Losses)		Received
	Held at		Gross		Gross			Held at		Value at		11/01/14		11/01/14
Fund	10/31/14		Purchases		Sales			04/30/15		04/30/15		to 04/30/15		to 04/30/15
Schwab S&P 500 Index Fund		1,302,581		36,000		—			1,338,581		$40,826,721		$—		$156,310
Schwab 1000 Index Fund		367,065		—		(10,800	)		356,265		10,866,082		197,850		44,048
Schwab Total Stock Market Index Fund		211,426		12,900		—			224,326		6,841,943		—		25,371

Certain Schwab Funds may own shares of other Schwab Funds. The table below reflects the percentages of shares of each fund in this report that are owned by other Schwab Funds as of April 30, 2015, as applicable:

	Underlying Funds
									Schwab
	Schwab			Schwab			Schwab		Total Stock		Schwab
	S&P 500			1000			Small-Cap		Market		International
	Index Fund			Index Fund			Index Fund		Index Fund		Index Fund
Schwab MarketTrack All Equity Portfolio		0.9%			—%			4.0%		—%		3.0%
Schwab MarketTrack Growth Portfolio		1.0%			—%			3.9%		—%		2.5%
Schwab MarketTrack Balanced Portfolio		0.5%			—%			2.1%		—%		1.3%
Schwab MarketTrack Conservative Portfolio		0.1%			—%			0.6%		—%		0.4%
Schwab MarketTrack Growth Portfolio II		0.0%	*		0.0%	*		0.2%		—%		0.2%
Schwab Target 2010 Fund		0.0%	*		—%			—%		—%		—%
Schwab Target 2015 Fund		0.0%	*		—%			—%		—%		—%
Schwab Target 2020 Fund		0.2%			—%			—%		—%		—%
Schwab Target 2025 Fund		0.2%			—%			—%		—%		—%
Schwab Target 2030 Fund		0.4%			—%			—%		—%		—%
Schwab Target 2035 Fund		0.2%			—%			—%		—%		—%
Schwab Target 2040 Fund		0.4%			—%			—%		—%		—%
Schwab Target 2045 Fund		0.0%	*		—%			—%		—%		—%
Schwab Target 2050 Fund		0.0%	*		—%			—%		—%		—%
Schwab Target 2055 Fund		0.0%	*		—%			—%		—%		—%

* Less than 0.1%

Certain other related parties may own shares of Schwab funds in this report. As of April 30, 2015, the shares owned by Schwab Charitable Giving Trust (an affiliate of Schwab) as a percentage of the total shares of the Schwab Small Cap Index Fund, Schwab Total Stock Market Index Fund and Schwab International Index Fund were 3.0%, 7.2% and 3.8%, respectively.

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 only. The interest rate to be charged on a loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. The interfund lending facility is subject to the oversight and periodic review by the Board. The funds had no interfund borrowing or lending activity during the period.

The funds may engage in direct transactions with certain other Schwab Funds when practical. 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.

56 

 Schwab Equity Index Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

This practice is limited to funds that share the same investment adviser, trustees and/or officers. For the period ended April 30, 2015, each fund’s total aggregate security transactions with other Schwab Funds were as follows:

Schwab S&P 500 Index Fund	$—
Schwab 1000 Index Fund	—
Schwab Small-Cap Index Fund	6,586,610
Schwab Total Stock Market Index Fund	—
Schwab International Index Fund	53,288,040

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 a 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:

The funds have access to custodian overdraft facilities, a committed line of credit of $150 million with State Street, an uncommitted line of credit of $100 million with Bank of America, N.A. and an uncommitted line of credit of $50 million with Brown Brothers Harriman & Co. The funds pay interest on the amounts they borrow at rates that are negotiated periodically. The funds also pay an annual fee to State Street for the committed line of credit.

There were no borrowings from the lines of credit by the funds during the period. However, the funds may have utilized their overdraft facility and incurred an interest expense, which is disclosed on a fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

7. Derivatives:

Certain funds entered into equity index futures contracts during the report period. The funds invested in futures contracts to equitize available cash. The fair value and variation margin for futures contracts held at April 30, 2015 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, the month-end average contract values of futures contracts held by the funds and the month-end average number of contracts held were as follows:

	Contract Values		Number of Contracts
Schwab S&P 500 Index Fund		$309,692,550		3,003
Schwab 1000 Index Fund		27,230,554		265
Schwab Small-Cap Index Fund		37,417,875		313
Schwab Total Stock Market Index Fund		58,859,567		560
Schwab International Index Fund		92,314,804		1,026

57

 Schwab Equity Index Funds

Financial Notes, unaudited (continued)

8. Purchases and Sales/Maturities of Investment Securities:

For the period ended April 30, 2015, purchases and sales/maturities of securities (excluding short-term obligations) were as follows:

	Purchases of Securities		Sales/Maturities of Securities
Schwab S&P 500 Index Fund		$1,241,825,200		$228,686,752
Schwab 1000 Index Fund		171,280,118		288,880,719
Schwab Small-Cap Index Fund		182,136,116		130,045,855
Schwab Total Stock Market Index Fund		333,574,627		13,173,779
Schwab International Index Fund		367,481,446		175,945,171

9. Redemption Fee:

The funds charge a 2.00% redemption fee on shares sold or exchanged within 30 days of the original purchase date. Such amounts are netted against redemption proceeds on the Statement of Changes in Net Assets. The redemption fees charged during the current and prior periods are:

	Current Period		Prior Period
	(11/1/14-4/30/15)		(11/1/13-10/31/14)
Schwab S&P 500 Index Fund		$133,890		$284,628
Schwab 1000 Index Fund		26,563		27,406
Schwab Small-Cap Index Fund		14,711		29,424
Schwab Total Stock Market Index Fund		25,064		75,062
Schwab International Index Fund		12,199		24,510

10. Federal Income Taxes:

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2014, the funds had capital loss carryforwards available to offset future net capital gains before the expiration dates as follows:

							Schwab
	Schwab		Schwab		Schwab		Total Stock		Schwab
	S&P 500		1000		Small-Cap		Market		International
Expiration Date	Index Fund		Index Fund		Index Fund		Index Fund		Index Fund
October 31, 2015		$89,645,092		$—		$—		$—		$—
October 31, 2016		77,879,594		—		—		—		—
October 31, 2017		20,049,252		—		—		—		12,386,180
Total		$187,573,938		$—		$—		$—		$12,386,180

For the year ended October 31, 2014, the funds had capital loss carryforwards utilized and capital losses expired as follows:

							Schwab
	Schwab		Schwab		Schwab		Total Stock		Schwab
	S&P 500		1000		Small-Cap		Market		International
	Index Fund		Index Fund		Index Fund		Index Fund		Index Fund
Capital loss carryforwards utilized		$95,059,485		$—		$—		$—		$5,012,069
Capital losses expired		14,197,048		—		—		—		—

As of October 31, 2014, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended October 31, 2014, the funds did not incur any interest or penalties.

58 

 Schwab Equity Index Funds

Financial Notes, unaudited (continued)

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.

59

Trustees and Officers

The tables below give information about the trustees and officers of Schwab Capital Trust and 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, Laudus Trust and Laudus Institutional Trust. The Fund Complex includes 95 funds.

The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-800-435-4000.

 Independent Trustees

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served1)	During the Past Five Years	the Trustee	Other Directorships
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 and Laudus Institutional Trust since 2010)	Senior Fellow, The Hoover Institution at Stanford University (Oct. 1979 – present); Senior Fellow Stanford Institute for Economic Policy Research (2000 – present); Professor of Public Policy, Stanford University (1994 – present).	74	Director, Gilead Sciences, Inc. (2005 – present)
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Private Investor.	74	Director, Symantec Corporation (2003 – present) Director, Corcept Therapeutics Incorporated (2004 – present) Director, Adamas Pharmaceuticals, Inc. (2009 – present)
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Retired. Executive Vice President and General Manager of Small Business Group, Intuit, Inc. (financial software and services firm for consumers and small businesses) (Dec. 2008 – Sept. 2013)	74	Director, KLA-Tencor Corporation (2008 – present)

60 

 Independent Trustees (continued)

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served1)	During the Past Five Years	the Trustee	Other Directorships
Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2015)	Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (May 2009 – present); Director, Asset International, Inc. (publisher of financial services information) (Jan. 2009 – Nov. 2014).	95	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 and Laudus Institutional Trust since 2010)	Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (Mar. 1990 –present).	74	Director, Eaton (2012 – present) Director and Chairman of the Audit Committee, Oneok Partners LP (2003 – 2013) Director, Oneok, Inc. (2009 – 2013) Lead Independent Director, Board of Cooper Industries (2002 – 2012)
Joseph H. Wender 1944 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010)	Senior Consultant, Goldman Sachs & Co., Inc. (investment banking and securities firm) (Jan. 2008 – present); Partner, Colgin Partners, LLC (vineyards) (Feb. 1998 – present).	74	Board Member and Chairman of the Audit Committee, Isis Pharmaceuticals (1994 – present)

61

 Interested Trustees

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served)	During the Past Five Years	the Trustee	Other Directorships
Charles R. Schwab2 1937 Chairman and Trustee (Chairman and Trustee of The Charles Schwab Family of Funds since 1989; Schwab Investments since 1991; Schwab Capital Trust since 1993; Schwab Annuity Portfolios since 1994; Laudus Trust and Laudus Institutional Trust since 2010)	Chairman and Director, The Charles Schwab Corporation (1986 – present); Chairman and Director of Charles Schwab & Co., Inc. (1971 – present); Chairman and Director of Charles Schwab Investment Management, Inc. (1989 – present); Chairman and Director of Charles Schwab Bank (2003 – present); Chairman and Chief Executive Officer of Schwab (SIS) Holdings Inc. I and Schwab International Holdings, Inc. (1996 – present); and Director, Chairman and Chief Executive Officer, Schwab Holdings, Inc. (1979 – present).	74	Chairman and Director, The Charles Schwab Corporation (1986 – present) Director, Yahoo! Inc. (2014 – present)
Walter W. Bettinger II2 1960 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (2008 – present); Director, Charles Schwab Bank (2006 – present); and Director Schwab Holdings, Inc. (2008 – present).	95	Director, The Charles Schwab Corporation (2008 – present)

 Officers of the Trust

Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served3)	Principal Occupations During the Past Five Years
Marie Chandoha 1961 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (January 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – August 2010).
George Pereira 1964 Treasurer and Principal Financial Officer, Schwab Funds Treasurer and Chief Financial Officer, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust and Laudus Institutional Trust since 2006)	Senior Vice President and Chief Financial Officer (Nov. 2004 – present), Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present) and Schwab ETFs (Oct. 2009 – present); Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present).

62 

 Officers of the Trust (continued)

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
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Equities, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009).
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Senior Managing Director, Global Head of Active Fixed-Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies Loomis, Sayles & Company (April 2006 – Jan. 2008).
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President (Sept. 2011 – present), Vice President (March 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present), Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds 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, Laudus Trust and Laudus Institutional Trust since 2005)	Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (March 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary, Schwab ETFs (Oct. 2009 – present).

1	Trustees remain in office until they resign, retire or are removed by shareholder vote. The Schwab and Laudus Funds’ retirement policy requires that independent trustees retire at age 72 or after twenty years as a trustee, whichever comes first. In addition, the retirement policy requires any independent trustee of Schwab Funds or Laudus Funds to retire from all Boards upon their required retirement date from either Board.
2	Mr. Schwab and Mr. Bettinger are Interested Trustees because they own stock of The Charles Schwab Corporation, the parent company of the investment adviser.
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 Boards.

.

63

Glossary

asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.

asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.

Barclays U.S. Aggregate Bond Index A broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-back securities (agency fixed-rate and hybrid ARM passthroughs), asset-backed securities, and commercial mortgage-backed securities.

Barclays U.S. Treasury Bills 1 − 3 Months Index An index that includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value.

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.

cap, capitalization See “market cap.”

capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.

Dow Jones U.S. Total Stock Market Index An index that measures the performance of all U.S. equity securities with readily available prices.

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.

International Spliced Index An internally calculated index, comprised of the Schwab International Index from inception of the Schwab International Index Fund until the close of business on 12/20/2011, the MSCI EAFE Index from 12/21/2011 until the close of business on 2/28/2013, and the MSCI EAFE Index (Net) from 3/1/2013 forward. The Schwab International Index includes the common stocks of the 350 largest publicly traded companies from selected countries outside of the United States.

market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.

MSCI EAFE (Europe, Australasia, Far East) Index A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.

net asset value (NAV) The value of one share of a 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.

price-to-book ratio (P/B)  The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.

price-to-earnings ratio (P/E)  The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.

restricted and illiquid securities Restricted securities are securities that are subject to legal restrictions on their sale. Restricted securities generally can be sold in privately negotiated transactions, pursuant to an exemption from registration under the Securities Act of1933 (the “1933 Act”), or in a registered public offering. Certain restricted securities, such as Section 4(a)(2) commercial paper and Rule 144A securities under the 1933 Act, may be considered to be liquid if they meet the criteria for liquidity established by the Board. Illiquid securities generally are any securities that cannot be disposed of promptly and in the ordinary course of business at approximately the amount at which a fund has valued the instruments. The liquidity of a fund’s investments is monitored under the supervision and direction of the Board. Investments currently not considered liquid include repurchase agreements not maturing within seven days and certain restricted securities.

return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.

Russell 2000 Index An index that measures the performance of the small-cap segment of the U.S. equity universe. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

S&P 500 Index A market capitalization index that is designed to measure the performance of 500 leading publicly held companies in leading industries of the U.S. economy.

Schwab 1000 Index An index that represents the performance of the largest 1,000 publicly traded companies in the United States with size being determined by market capitalization (total market value of all shares outstanding).

64 

Small-Cap Spliced Index An internally calculated index, comprised of the Schwab Small-Cap Index (the fund’s former comparative index) from inception of the fund until the close of business on December 14, 2011, and the Russell 2000 Index from December 15, 2011 forward.

stock A share of ownership, or equity, in the issuing company.

total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.

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.

65

Notes

Notes

Notes

Schwab Funds^® offers you an extensive family of mutual funds, each one based on a clearly defined investment approach and using disciplined management strategies. The list at right shows all currently available Schwab Funds.

Whether you are an experienced investor or just starting out, Schwab Funds can help you achieve your financial goals. An investor should consider a fund’s investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information can be found in the fund’s prospectus. Please call 1-800-435-4000 for a prospectus and brochure 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.csimfunds.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-800-435-4000.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.csimfunds.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.

The Schwab Funds Family^®

Stock Funds

Schwab Core Equity Fund^tm

Schwab Dividend Equity Fund^tm

Schwab Large-Cap Growth Fund^tm

Schwab Small-Cap Equity Fund^tm

Schwab Hedged Equity Fund^tm

Schwab Financial Services Fund^tm

Schwab Health Care Fund^tm

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^tm

Schwab^® S&P 500 Index Fund

Schwab 1000 Index^® Fund

Schwab Small-Cap Index Fund^®

Schwab Total Stock Market Index Fund^®

Schwab International Index Fund^®

Asset Allocation Funds

Schwab Balanced Fund^tm

Schwab MarketTrack All Equity Portfolio^tm

Schwab MarketTrack Growth Portfolio^tm

Schwab MarketTrack Balanced Portfolio^tm

Schwab MarketTrack Conservative Portfolio^tm

Schwab Target 2010 Fund

Schwab Target 2015 Fund

Schwab Target 2020 Fund

Schwab Target 2025 Fund

Schwab Target 2030 Fund

Schwab Target 2035 Fund

Schwab Target 2040 Fund

Schwab Target 2045 Fund

Schwab Target 2050 Fund

Schwab Target 2055 Fund

Schwab^® Monthly Income Fund – Moderate Payout

Schwab^® Monthly Income Fund – Enhanced Payout

Schwab^® Monthly Income Fund – Maximum Payout

Bond Funds

Schwab Short-Term Bond Market Fund^tm

Schwab Intermediate-Term Bond Fund^tm

Schwab Total Bond Market Fund^tm

Schwab GNMA Fund^tm

Schwab^® Treasury Inflation Protected Securities Index Fund

Schwab Tax-Free Bond Fund^tm

Schwab California Tax-Free Bond Fund^tm

Schwab Money Funds

Schwab offers an array of money market funds¹. Choose from taxable or tax-advantaged alternatives. Many can be linked to your eligible Schwab account to “sweep” cash balances automatically, subject to availability, when you’re between investments. Or, for your larger cash reserves, choose one of our Value Advantage Investments^®.

¹ Investments in money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency and, although they seek to preserve the value of your investment at $1 per share, it is possible to lose money.

Investment Adviser

Charles Schwab Investment Management, Inc.

211 Main Street, San Francisco, CA 94105

Schwab Funds^®

1-800-407-0256

This report is not authorized for distribution to prospective investors

unless preceded or accompanied by a current prospectus.

^© 2015 Charles Schwab & Co., Inc. All rights reserved.

Member SIPC^®

Printed on recycled paper.

MFR13562-19

00143414

Semiannual report dated April 30, 2015, enclosed.

Schwab Active Equity Funds

Schwab Core Equity Fund^tm

Schwab Dividend Equity Fund^tm

Schwab Large-Cap Growth Fund^tm

Schwab Small-Cap Equity Fund^tm

Schwab Hedged Equity Fund^tm

Schwab Financial Services Fund^tm

Schwab Health Care Fund^tm

Schwab^® International Core

Equity Fund

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This wrapper is not part of the shareholder report.

Schwab Active Equity Funds

Semiannual Report

April 30, 2015

Schwab Core Equity Fund^tm

Schwab Dividend Equity Fund^tm

Schwab Large-Cap Growth Fund^tm

Schwab Small-Cap Equity Fund^tm

Schwab Hedged Equity Fund^tm

Schwab Financial Services Fund^tm

Schwab Health Care Fund^tm

Schwab^® International Core

Equity Fund

This page is intentionally left blank.

Schwab Active Equity Funds

In This Report

Performance at a Glance	4
From the President	5
Fund Management	7
Performance and Fund Facts
Schwab Core Equity Fund	8
Schwab Dividend Equity Fund	9
Schwab Large-Cap Growth Fund	10
Schwab Small-Cap Equity Fund	11
Schwab Hedged Equity Fund	12
Schwab Financial Services Fund	13
Schwab Health Care Fund	14
Schwab International Core Equity Fund	15
Fund Expenses	17
Financial Statements and Portfolio Holdings
Schwab Core Equity Fund	18
Schwab Dividend Equity Fund	25
Schwab Large-Cap Growth Fund	32
Schwab Small-Cap Equity Fund	39
Schwab Hedged Equity Fund	48
Schwab Financial Services Fund	57
Schwab Health Care Fund	63
Schwab International Core Equity Fund	71
Financial Notes	81
Trustees and Officers	94
Glossary	98

Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: Charles Schwab & Co., Inc. (Schwab).

The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS), which was developed by, and is the exclusive property of, MSCI and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab. The Industry classifications used in the schedules of Portfolio Holdings are sub-categories of Sector classifications.

Performance at a Glance

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment 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.csimfunds.com.

Total Return for the 6 Months Ended April 30, 2015
Schwab Core Equity Fund (Ticker Symbol: SWANX)	4.79%
S&P 500® Index	4.40%
Fund Category: Morningstar Large Blend	3.99%
Performance Details	page 8
Schwab Dividend Equity Fund (Ticker Symbol: SWDSX)	3.25%
Russell 1000 Value Index	2.89%
Fund Category: Morningstar Large Value	3.24%
Performance Details	page 9
Schwab Large-Cap Growth Fund (Ticker Symbol: SWLSX)	6.46%
Russell 1000 Growth Index	6.54%
Fund Category: Morningstar Large Growth	5.32%
Performance Details	page 10
Schwab Small-Cap Equity Fund (Ticker Symbol: SWSCX)	5.05%
Russell 2000® Index	4.65%
Fund Category: Morningstar Small Blend	3.71%
Performance Details	page 11
Schwab Hedged Equity Fund (Ticker Symbol: SWHEX)	2.68%
S&P 500® Index	4.40%
Fund Category: Morningstar Long/Short Equity	1.85%
Performance Details	page 12
Schwab Financial Services Fund (Ticker Symbol: SWFFX)	2.57%
S&P 1500 SuperComposite Financial Sector Index	2.53%
Fund Category: Morningstar Financial	2.48%
Performance Details	page 13
Schwab Health Care Fund1 (Ticker Symbol: SWHFX)	8.75%
Dow Jones Global Health Care Index	8.96%
Fund Category: Morningstar Health	11.54%
Performance Details	page 14
Schwab International Core Equity Fund1 (Ticker Symbol: SICNX)	7.04%
MSCI EAFE® Index (Net)2	6.81%
Fund Category: Morningstar Foreign Large Blend	5.89%
Performance Details	pages 15-16

Minimum Initial Investment³ $ 100

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.

Fund 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	The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
2	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
3	Please see the funds’ prospectus for further detail and eligibility requirements.

4 Schwab Active Equity Funds

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.

Dear Shareholder,

At Charles Schwab Investment Management, we design our investment products to serve as part of the foundation of an investor’s portfolio. Our Schwab Active Equity Funds employ a disciplined investment process that involves quantitative and qualitative research. The funds utilize a bottom-up approach to stock selection, whereby we focus on selecting stocks based on the individual attributes of a company. To aid in each fund’s stock selection process, multiple inputs, including Schwab Equity Ratings^® and Schwab’s proprietary international stock research, are analyzed by an experienced investment team.

For the six-month reporting period ended April 30, 2015, the funds generated returns that reflected a positive performance by both U.S. and international stocks, with six of the eight funds outperforming their comparative indices. The Schwab Small-Cap Equity Fund and the Schwab Core Equity Fund performed particularly well versus their comparative indices, while the Schwab Dividend Equity Fund and the Schwab Health Care Fund underperformed by comparison.

In the U.S., several indices reached record highs during the reporting period, despite weaker-than-expected economic data in early 2015. The Federal Reserve maintained historically low short-term interest rates, though speculation surrounding a potential rate increase contributed to heightened market volatility. Outside the U.S., developed markets showed significant improvement over the reporting period. Additional supportive central bank policies began to take effect in several regions, which also contributed to a strong U.S.

 Asset Class Performance Comparison % returns during the six months ended 4/30/2015

This graph compares the performance of various asset classes during the report period. Final performance figures for the period are in the key below.

	4.40%	S&P 500® Index: measures U.S. large-cap stocks
	4.65%	Russell 2000® Index: measures U.S. small-cap stocks
	6.81%	MSCI EAFE® Index (Net): measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East
	2.06%	Barclays U.S. Aggregate Bond Index: measures the U.S. bond market
	0.01%	Barclays U.S. Treasury Bills 1-3 Months Index: measures short-term U.S. Treasury obligations

Index figures assume dividends and distributions were reinvested, and do not include trading and management costs, which would lower performance. Indices are unmanaged, do not incur management fees, costs and expenses, and you cannot invest in them directly. Remember that past performance is not an indication of future results.

For index definitions, please see the Glossary.

Data source: Index provider websites and CSIM.

Nothing in this report represents a recommendation of a security by the investment adviser.

Management views and portfolio holdings may have changed since the report date.

Schwab Active Equity Funds 5

From the President continued

For the six-month reporting period ended April 30, 2015, the funds generated returns that reflected a positive performance by both U.S. and international stocks, with six of the eight funds outperforming their comparative indices.

dollar. When the U.S. dollar rises against foreign currencies, returns on overseas investments will generally be reduced in U.S. dollar terms. However, as international markets performed particularly well this reporting period, returns on many of these investments were positive even when translated into U.S. dollars. Reflecting these conditions, the MSCI EAFE Index, which broadly represents the performance of international stocks, returned 6.8%¹, and the S&P 500 Index, which broadly represents the performance of U.S. large-cap equities, returned 4.4%.

In general, small-cap stocks slightly outperformed large-cap stocks and growth stocks outperformed value. From a sector standpoint, the Consumer Discretionary and Health Care sectors were some of the better performers, while shares of companies involved in Energy and Utilities generally underperformed by comparison.

For more information about the performance, holdings, and portfolio characteristics of the Schwab Active Equity Funds, please continue reading this report. In addition, you can find further details about these funds by visiting our new website at www.csimfunds.com, which provides improved functionality, enhanced design, and access to industry insights. We are also happy to hear from you at 1-800-435-4000.

Sincerely,

For full definitions of the referenced indices, please see the Glossary

¹ The total return cited is calculated net of foreign withholding taxes.

6 Schwab Active Equity Funds

Fund Management

	Jonas Svallin, CFA, Vice President and Head of Active Equity Products, has overall responsibility for all aspects of the management of the funds and leads the Active Equity portfolio management and research team. Prior to joining CSIM in 2012, Mr. Svallin spent nearly three years as a partner and a director of quantitative analytics and research at Fiduciary Research & Consulting, where he provided oversight of quantitative analytics and risk management efforts. From 2003 until 2009, Mr. Svallin was a principal and head portfolio manager at Algert Coldiron Investors (ACI). Prior to joining ACI, Mr. Svallin worked as a quantitative research associate at RCM Capital Management and a senior consultant at FactSet Research Systems.
	Wei Li, Ph.D., CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2012, Ms. Li spent more than ten years at BlackRock, Inc. (formerly Barclays Global Investors), where she held a number of positions. From 2001 to 2009, she worked in various roles in the Global Advanced Active group, including portfolio management and quantitative research for both U.S. and international equity markets. After 2009, she worked in the defined contribution research and product development area for almost two years.
	Iain Clayton, CFA, FRM, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the Schwab Core Equity Fund, Schwab International Core Equity Fund and Schwab Health Care Fund. Prior to joining CSIM in 2013, Mr. Clayton spent more than five years at SSI Investment Management, where he was a portfolio manager and director of quantitative research. In these roles, Mr. Clayton co-managed multiple investment strategies and developed quantitative models and valuation approaches. From 2004 to 2008, he worked as a portfolio manager and director at RCM Capital Management and helped manage various equity portfolios and developed fundamental-based stock selection models. Prior to that, he was a vice president at Eureka Investment Advisors for almost three years and also served as a senior quantitative analyst/assistant portfolio manager. He has also worked as a quantitative research analyst at RCM Capital Management.

Schwab Active Equity Funds 7

Schwab Core Equity Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2,3

Fund and Inception Date	6 Months			1 Year			5 Years			10 Years
Fund: Schwab Core Equity Fund (7/1/96)		4.79	%		14.05	%		13.35	%		8.17	%
S&P 500® Index		4.40	%		12.98	%		14.33	%		8.32	%
Fund Category: Morningstar Large Blend		3.99	%		10.83	%		12.82	%		7.66	%

Fund Expense Ratio⁴: 0.72%

 Statistics

Number of Holdings	119
Weighted Average Market Cap (millions)	$109,375
Price/Earnings Ratio (P/E)	17.5
Price/Book Ratio (P/B)	2.8
Portfolio Turnover Rate5	44%

 Sector Weightings % of Investments

Information Technology	20.3%
Health Care	16.3%
Financials	14.7%
Consumer Staples	11.9%
Industrials	11.5%
Consumer Discretionary	10.8%
Energy	6.8%
Utilities	4.6%
Materials	2.1%
Telecommunication Services	1.0%
Total	100.0%

 Top Equity Holdings % of Net Assets⁶

Apple, Inc.	5.0%
Pfizer, Inc.	3.3%
PepsiCo, Inc.	2.8%
Lowe’s Cos., Inc.	2.5%
Amgen, Inc.	2.3%
The Kroger Co.	2.3%
General Dynamics Corp.	2.2%
Stanley Black & Decker, Inc.	2.2%
Valero Energy Corp.	2.2%
Cardinal Health, Inc.	2.2%
Total	27.0%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	On May 21, 2009 and September 7, 2012, respectively, the Laudus U.S. MarketMasters Fund and the Schwab Premier Equity Fund merged into the fund.
4	As stated in the prospectus. Reflects the total annual operating expenses without contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
5	Not annualized.
6	This list is not a recommendation of any security by the investment adviser.

8 Schwab Active Equity Funds

Schwab Dividend Equity Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2,3

Fund and Inception Date	6 Months			1 Year			5 Years			10 Years
Fund: Schwab Dividend Equity Fund (9/2/03)		3.25	%		9.48	%		13.19	%		7.81	%
Russell 1000 Value Index		2.89	%		9.31	%		13.39	%		7.51	%
Dividend Equity Spliced Index		4.60	%		13.20	%		14.37	%		8.34	%
S&P 500® Index		4.40	%		12.98	%		14.33	%		8.32	%
Fund Category: Morningstar Large Value		3.24	%		8.36	%		12.18	%		7.06	%

Fund Expense Ratio⁴: 0.89%

 Yields¹

30-Day SEC Yield 1.40%

 Statistics

Number of Holdings	122
Weighted Average Market Cap (millions)	$97,832
Price/Earnings Ratio (P/E)	17.0
Price/Book Ratio (P/B)	2.1
Portfolio Turnover Rate5	35%

 Sector Weightings % of Investments

Financials	27.5%
Health Care	13.8%
Energy	10.9%
Information Technology	10.6%
Industrials	10.2%
Consumer Staples	9.4%
Consumer Discretionary	6.5%
Utilities	6.3%
Materials	2.7%
Telecommunication Services	1.5%
	0.6%
Total	100.0%

 Top Equity Holdings % of Net Assets⁶

JPMorgan Chase & Co.	4.4%
Pfizer, Inc.	4.1%
Merck & Co., Inc.	2.6%
Wells Fargo & Co.	2.5%
ConocoPhillips	2.4%
General Dynamics Corp.	2.2%
Morgan Stanley	2.1%
Chevron Corp.	2.1%
Exxon Mobil Corp.	2.1%
Archer-Daniels-Midland Co.	2.0%
Total	26.5%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	On October 7, 2009, the Investor Share class and Select Share class were combined into a single class of shares of the fund. The performance history of the fund prior to October 7, 2009 is that of the fund’s former Select Shares.
4	As stated in the prospectus. Reflects the total annual operating expenses without contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
5	Not annualized.
6	This list is not a recommendation of any security by the investment adviser.

Schwab Active Equity Funds 9

Schwab Large-Cap Growth Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2,3

Fund and Inception Date	6 Months			1 Year			5 Years			Since Inception
Fund: Schwab Large-Cap Growth Fund (10/3/05)		6.46	%		17.59	%		14.25	%		7.77	%
Russell 1000 Growth Index		6.54	%		16.67	%		15.49	%		9.12	%
Fund Category: Morningstar Large Growth		5.32	%		14.91	%		13.61	%		8.04	%

Fund Expense Ratios⁴: Net 0.99%; Gross 1.04%

 Statistics

Number of Holdings	101
Weighted Average Market Cap (millions)	$117,095
Price/Earnings Ratio (P/E)	19.1
Price/Book Ratio (P/B)	3.5
Portfolio Turnover Rate5	44%

 Sector Weightings % of Investments

Information Technology	26.0%
Consumer Discretionary	16.2%
Health Care	15.2%
Industrials	12.3%
Consumer Staples	11.9%
Financials	8.0%
Energy	3.6%
Materials	3.2%
Utilities	1.6%
Telecommunication Services	0.4%
Other	1.6%
Total	100.0%

 Top Equity Holdings % of Net Assets⁶

Apple, Inc.	8.0%
PepsiCo, Inc.	3.2%
Gilead Sciences, Inc.	3.1%
Amgen, Inc.	2.9%
Microsoft Corp.	2.7%
Lowe’s Cos., Inc.	2.5%
Comcast Corp., Class A	2.4%
The Kroger Co.	2.3%
Expedia, Inc.	2.0%
Stanley Black & Decker, Inc.	1.9%
Total	31.0%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	On October 7, 2009, the Investor Share class and Select Share class were combined into a single class of shares of the fund. The performance history of the fund prior to October 7, 2009 is that of the fund’s former Select Shares.
4	As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
5	Not annualized.
6	This list is not a recommendation of any security by the investment adviser.

10 Schwab Active Equity Funds

Schwab Small-Cap Equity Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2,3

Fund and Inception Date	6 Months			1 Year			5 Years			10 Years
Fund: Schwab Small-Cap Equity Fund (7/1/03)		5.05	%		9.59	%		15.72	%		9.39	%
Russell 2000® Index		4.65	%		9.71	%		12.73	%		9.18	%
Fund Category: Morningstar Small Blend		3.71	%		6.86	%		12.17	%		8.69	%

Fund Expense Ratio⁴: 1.10%

 Statistics

Number of Holdings	324
Weighted Average Market Cap (millions)	$1,509
Price/Earnings Ratio (P/E)	32.8
Price/Book Ratio (P/B)	2.0
Portfolio Turnover Rate5	50%

 Sector Weightings % of Investments

Financials	19.5%
Information Technology	18.1%
Health Care	17.7%
Consumer Discretionary	13.6%
Industrials	9.9%
Energy	5.6%
Consumer Staples	5.2%
Materials	3.6%
Telecommunication Services	1.4%
Utilities	1.4%
Other	4.0%
Total	100.0%

 Top Equity Holdings % of Net Assets⁶

Emergent Biosolutions, Inc.	1.1%
Empire State Realty Trust, Inc., Class A	1.1%
PAREXEL International Corp.	1.1%
First Industrial Realty Trust, Inc.	1.1%
Summit Hotel Properties, Inc.	1.1%
Molina Healthcare, Inc.	1.1%
Chambers Street Properties	1.1%
Symetra Financial Corp.	1.0%
Progress Software Corp.	1.0%
Cash America International, Inc.	1.0%
Total	10.7%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

Small-company stocks are subject to greater volatility than other many asset classes.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	On September 28, 2009, the Investor Share class and Select Share class were combined into a single class of shares of the fund. The performance history of the fund prior to September 28, 2009 is that of the fund’s former Select Shares.
4	As stated in the prospectus. Reflects the total annual operating expenses without contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
5	Not annualized.
6	This list is not a recommendation of any security by the investment adviser.

Schwab Active Equity Funds 11

Schwab Hedged Equity Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2,3

Fund and Inception Date	6 Months			1 Year			5 Years			10 Years
Fund: Schwab Hedged Equity Fund (9/3/02)		2.68	%		7.78	%		7.17	%		4.98	%
S&P 500® Index		4.40	%		12.98	%		14.33	%		8.32	%
Fund Category: Morningstar Long/Short Equity		1.85	%		3.37	%		6.23	%		5.29	%

Fund Expense Ratios⁴: Net 1.99%; Gross 2.02%

 Statistics

Number of Holdings
Long Holdings	124
Short Holdings	67
Weighted Average Market Cap (millions)
Long Holdings	$50,923
Short Holdings	$9,736
Price/Earnings Ratio (P/E)
Long Holdings	18.2
Short Holdings	40.8
Price/Book Ratio (P/B)
Long Holdings	2.2
Short Holdings	2.9
Portfolio Turnover Rate5	68%
Portfolio Turnover Rate excluding short sales5	47%

 Top Equity Long Holdings

 % of Net Assets⁶

Apple, Inc.	2.7%
Pfizer, Inc.	2.4%
Amgen, Inc.	2.3%
Archer-Daniels-Midland Co.	2.0%
Outerwall, Inc.	2.0%
Total	11.4%

 Top Equity Short Holdings

 % of Net Assets⁶

CarMax, Inc.	1.6%
Diamondback Energy, Inc.	1.6%
Cabela’s, Inc.	1.5%
The Williams Cos., Inc.	1.3%
United Natural Foods, Inc.	1.3%
Total	7.3%

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 you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

The Schwab Hedged Equity Fund’s long positions can decline in value at the same time the value of its shorted stocks increases, thereby increasing the potential for loss. The potential loss associated with short positions is much greater than the original value of the securities sold. The use of borrowing and short sales may cause the fund to have higher expenses than those of equity funds that do not use such techniques. 

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	On September 28, 2009, the Investor Share class and Select Share class were combined into a single class of shares of the fund. The performance history of the fund prior to September 28, 2009 is that of the fund’s former Select Shares.
4	As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
5	Not annualized.
6	This list is not a recommendation of any security by the investment adviser.

12 Schwab Active Equity Funds

Schwab Financial Services Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Fund and Inception Date	6 Months			1 Year			5 Years			10 Years
Fund: Schwab Financial Services Fund (7/3/00)		2.57	%		11.22	%		9.73	%		4.03	%
S&P 1500 SuperComposite Financial Sector Index		2.53	%		12.04	%		10.45	%		1.27	%
S&P 500® Index		4.40	%		12.98	%		14.33	%		8.32	%
Fund Category: Morningstar Financial		2.48	%		7.00	%		8.41	%		3.36	%

Fund Expense Ratio³: 0.90%

 Statistics

Number of Holdings	76
Weighted Average Market Cap (millions)	$80,107
Price/Earnings Ratio (P/E)	14.9
Price/Book Ratio (P/B)	1.3
Portfolio Turnover Rate4	27%

 Industry Weightings % of Investments

Diversified Financials	34.3%
Insurance	22.4%
Real Estate	22.4%
Banks	19.1%
Media	1.0%
Other	0.8%
Total	100.0%

 Top Equity Holdings % of Net Assets⁵

Wells Fargo & Co.	5.7%
Berkshire Hathaway, Inc., Class B	5.5%
JPMorgan Chase & Co.	5.4%
Citigroup, Inc.	4.8%
Bank of America Corp.	4.8%
Simon Property Group, Inc.	3.7%
MetLife, Inc.	3.5%
Morgan Stanley	3.1%
Reinsurance Group of America, Inc.	2.5%
SL Green Realty Corp.	2.4%
Total	41.4%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Since the Financial Services Fund focuses its investments on companies involved in specific sectors, this fund may involve a greater degree of risk than an investment in mutual funds that do not concentrate their investments.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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. Reflects the total annual operating expenses without contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	This list is not a recommendation of any security by the investment adviser.

Schwab Active Equity Funds 13

Schwab Health Care Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Fund and Inception Date	6 Months			1 Year			5 Years			10 Years
Fund: Schwab Health Care Fund (7/3/00)		8.75	%		25.28	%		21.62	%		12.44	%
Dow Jones Global Health Care Index		8.96	%		21.01	%		18.58	%		10.74	%
S&P 500® Index		4.40	%		12.98	%		14.33	%		8.32	%
Fund Category: Morningstar Health		11.54	%		33.51	%		22.02	%		13.49	%

Fund Expense Ratio³: 0.80%

 Statistics

Number of Holdings	90
Weighted Average Market Cap (millions)	$89,418
Price/Earnings Ratio (P/E)	26.3
Price/Book Ratio (P/B)	4.6
Portfolio Turnover Rate4	44%

 Industry Weightings % of Investments

Pharmaceuticals, Biotechnology & Life Sciences	75.2%
Healthcare – Services	22.1%
Materials	1.0%
Household & Personal Products	0.4%
Software & Services	0.2%
Other Investment Company	0.2%
Technology Hardware & Equipment	0.1%
Other	0.8%
Total	100.0%

 Top Equity Holdings % of Net Assets⁵

Gilead Sciences, Inc.	6.4%
Johnson & Johnson	5.9%
Amgen, Inc.	5.8%
Pfizer, Inc.	5.7%
Celgene Corp.	4.3%
Merck & Co., Inc.	4.1%
Novo Nordisk A/S, Class B	3.5%
Biogen, Inc.	3.3%
Shire plc	3.0%
AbbVie, Inc.	3.0%
Total	45.0%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

The fund’s performance relative to the index may be affected by fair-value pricing, see financial note 2 for more information.

Since the Health Care Fund focuses its investments on companies involved in specific sectors, this fund may involve a greater degree of risk than an investment in mutual funds that do not concentrate their investments.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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. Reflects the total annual operating expenses without contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	This list is not a recommendation of any security by the investment adviser.

14 Schwab Active Equity Funds

Schwab International Core Equity Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2,3

Fund and Inception Date	6 Months			1 Year			5 Years			Since Inception
Fund: Schwab International Core Equity Fund (5/30/08)		7.04	%		2.23	%		9.84	%		2.80	%
MSCI EAFE® Index (Net)4		6.81	%		1.66	%		7.40	%		1.32	%
MSCI EAFE® Index (Gross)		7.06	%		2.10	%		7.89	%		1.78	%
Fund Category: Morningstar Foreign Large Blend		5.89	%		2.25	%		6.79	%		0.98	%

Fund Expense Ratios⁵: Net 0.86%; Gross 0.98%

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.

The fund’s performance relative to the index may be affected by fair-value pricing, see financial note 2 for more information.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	On October 7, 2009, the Investor Share class, Select Share class and Institutional Share class were combined into a single class of shares of the fund. The performance history of the fund prior to October 7, 2009 is that of the fund’s former Institutional Shares. On December 3, 2009, the Laudus Rosenberg International Equity Fund merged into the fund.
4	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
5	As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.

Schwab Active Equity Funds 15

 Schwab International Core Equity Fund

Performance and Fund Facts as of 04/30/15 continued

 Statistics

Number of Holdings	172
Weighted Average Market Cap (millions)	$46,503
Price/Earnings Ratio (P/E)	16.5
Price/Book Ratio (P/B)	1.8
Portfolio Turnover Rate1	47%

 Sector Weightings % of Investments

Financials	24.4%
Consumer Discretionary	16.7%
Industrials	12.3%
Consumer Staples	10.8%
Health Care	9.7%
Energy	7.7%
Materials	6.3%
Information Technology	6.0%
Utilities	3.6%
Telecommunication Services	2.2%
Other	0.3%
Total	100.0%

 Top Equity Holdings % of Net Assets²

Allianz SE – Reg’d	2.5%
Nestle S.A. – Reg’d	2.1%
New World Development Co., Ltd.	1.8%
Unilever plc	1.8%
Woodside Petroleum Ltd.	1.8%
Credit Agricole S.A.	1.8%
Duerr AG	1.7%
Swiss Life Holding AG – Reg’d	1.7%
BHP Billiton plc	1.7%
Unilever N.V. CVA	1.7%
Total	18.6%

 Country Weightings % of Investments

Japan	20.6%
United Kingdom	19.7%
France	9.1%
Switzerland	7.9%
Germany	7.4%
Australia	5.5%
Hong Kong	5.3%
Netherlands	4.5%
Belgium	3.0%
Denmark	2.9%
Other Countries	14.1%
Total	100.0%

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.

1	Not annualized.
2	This list is not a recommendation of any security by the investment adviser.

16 Schwab Active Equity Funds

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 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 November 1, 2014 and held through April 30, 2015.

Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ¸ $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.

You may use this information to compare the ongoing costs of investing in a fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, 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.

					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio1		Account Value		(Net of Expenses)		During Period2
	(Annualized)		at 11/1/14		at 4/30/15		11/1/14–4/30/15
Schwab Core Equity Fund
Actual Return		0.74%	$	1,000.00	$	1,047.90	$	3.76
Hypothetical 5% Return		0.74%	$	1,000.00	$	1,021.13	$	3.71
Schwab Dividend Equity Fund
Actual Return		0.88%	$	1,000.00	$	1,032.50	$	4.43
Hypothetical 5% Return		0.88%	$	1,000.00	$	1,020.44	$	4.41
Schwab Large-Cap Growth Fund
Actual Return		0.99%	$	1,000.00	$	1,064.60	$	5.07
Hypothetical 5% Return		0.99%	$	1,000.00	$	1,019.89	$	4.96
Schwab Small-Cap Equity Fund
Actual Return		1.09%	$	1,000.00	$	1,050.50	$	5.54
Hypothetical 5% Return		1.09%	$	1,000.00	$	1,019.39	$	5.46
Schwab Hedged Equity Fund
Actual Return		1.83%	$	1,000.00	$	1,026.80	$	9.20
Hypothetical 5% Return		1.83%	$	1,000.00	$	1,015.73	$	9.15
Schwab Financial Services Fund
Actual Return		0.89%	$	1,000.00	$	1,025.70	$	4.47
Hypothetical 5% Return		0.89%	$	1,000.00	$	1,020.39	$	4.46
Schwab Health Care Fund
Actual Return		0.79%	$	1,000.00	$	1,087.50	$	4.09
Hypothetical 5% Return		0.79%	$	1,000.00	$	1,020.88	$	3.96
Schwab International Core Equity Fund
Actual Return		0.86%	$	1,000.00	$	1,070.40	$	4.41
Hypothetical 5% Return		0.86%	$	1,000.00	$	1,020.54	$	4.31

1	Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights.
2	Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days of the period, and divided by the 365 days of the fiscal year.

Schwab Active Equity Funds 17

Schwab Core Equity Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		25.48			23.46			18.80			16.81			15.78			14.26
Income (loss) from investment operations:
Net investment income (loss)		0.17	1		0.30			0.32			0.26			0.19			0.17
Net realized and unrealized gains (losses)		1.00			3.60			4.51			2.07			1.01			1.50
Total from investment operations		1.17			3.90			4.83			2.33			1.20			1.67
Less distributions:
Distributions from net investment income		(0.33	)		(0.22	)		(0.17	)		(0.34	)		(0.17	)		(0.15	)
Distributions from net realized gains		(3.40	)		(1.66	)		—			—			—			—
Total distributions		(3.73	)		(1.88	)		(0.17	)		(0.34	)		(0.17	)		(0.15	)
Net asset value at end of period		22.92			25.48			23.46			18.80			16.81			15.78
Total return (%)		4.79	2		17.88			25.89			13.99			7.60			11.77
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		0.74	3		0.72			0.72			0.72			0.73			0.73
Gross operating expenses		0.74	3		0.72			0.73			0.73			0.73			0.74
Net investment income (loss)		1.44	3		1.19			1.51			1.37			1.06			1.05
Portfolio turnover rate		44	2		63			80			45	4		35			49
Net assets, end of period ($ x 1,000,000)		2,371			2,317			2,247			1,880			1,719			1,792

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

⁴ Portfolio turnover excludes the impact of investment activities from mergers with other funds.

18 See financial notes

 Schwab Core Equity Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.2%	Common Stock		1,937,386,561		2,350,733,932
	1	.0%	Other Investment Companies		23,815,128		23,815,128
	100	.2%	Total Investments		1,961,201,689		2,374,549,060
	(0	.2%)	Other Assets and Liabilities, Net				(3,959,526	)
	100	.0%	Net Assets				2,370,589,534

	Number		Value
Security	of Shares		($)
Common Stock 99.2% of net assets
Automobiles & Components 1.4%
Dana Holding Corp.		813,803		17,553,731
Delphi Automotive plc		200,376		16,631,208
				34,184,939
Banks 5.0%
Bank of America Corp.		356,363		5,676,863
Citigroup, Inc.		407,396		21,722,355
JPMorgan Chase & Co.		737,537		46,656,591
Radian Group, Inc.		1,033,175		18,452,505
Wells Fargo & Co.		484,574		26,700,027
				119,208,341
Capital Goods 7.7%
Allison Transmission Holdings, Inc.		139,652		4,284,523
Emerson Electric Co.		94,100		5,535,903
General Dynamics Corp.		385,856		52,985,746
Huntington Ingalls Industries, Inc.		117,003		15,396,425
Masco Corp.		284,687		7,541,359
PACCAR, Inc.		97,028		6,340,780
Parker-Hannifin Corp.		48,545		5,794,331
Spirit AeroSystems Holdings, Inc., Class A *		169,141		8,607,586
Stanley Black & Decker, Inc.		525,977		51,913,930
United Rentals, Inc. *		257,730		24,891,563
				183,292,146
Commercial & Professional Supplies 0.9%
R.R. Donnelley & Sons Co.		1,190,000		22,157,800
Consumer Durables & Apparel 0.1%
Wolverine World Wide, Inc.		77,858		2,392,576
Consumer Services 0.5%
Starbucks Corp.		151,736		7,523,071
Vail Resorts, Inc.		39,839		3,952,427
				11,475,498
Diversified Financials 3.6%
Affiliated Managers Group, Inc. *		38,132		8,622,789
Berkshire Hathaway, Inc., Class B *		33,800		4,772,898
Lazard Ltd., Class A		774,658		41,080,114
The Goldman Sachs Group, Inc.		76,666		15,058,736
Voya Financial, Inc.		359,241		15,210,264
				84,744,801
Energy 6.8%
Chevron Corp.		63,564		7,059,418
ConocoPhillips		554,923		37,690,370
CVR Energy, Inc. (a)		181,342		7,260,934
EOG Resources, Inc.		201,148		19,903,594
Exxon Mobil Corp.		145,500		12,712,335
Marathon Petroleum Corp.		32,893		3,242,263
Superior Energy Services, Inc.		198,204		5,054,202
Tesoro Corp.		26,034		2,234,498
Valero Energy Corp.		911,552		51,867,309
Western Refining, Inc.		300,153		13,221,740
				160,246,663
Food & Staples Retailing 4.6%
Costco Wholesale Corp.		310,523		44,420,315
The Kroger Co.		795,007		54,783,932
Wal-Mart Stores, Inc.		135,055		10,541,043
				109,745,290
Food, Beverage & Tobacco 6.0%
Archer-Daniels-Midland Co.		859,484		42,011,578
Dr Pepper Snapple Group, Inc.		311,006		23,194,828
Ingredion, Inc.		57,826		4,591,384
PepsiCo, Inc.		701,248		66,702,710
Pilgrim’s Pride Corp. (a)		258,540		6,385,938
				142,886,438
Health Care Equipment & Services 5.0%
C.R. Bard, Inc.		95,800		15,958,364
Cardinal Health, Inc.		606,384		51,142,427
Centene Corp. *		231,796		14,369,034
McKesson Corp.		143,918		32,151,281
Molina Healthcare, Inc. *		82,301		4,874,688
				118,495,794
Household & Personal Products 1.1%
Spectrum Brands Holdings, Inc.		286,109		26,158,946

See financial notes 19

 Schwab Core Equity Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Insurance 2.7%
MetLife, Inc.		356,464		18,283,039
Reinsurance Group of America, Inc.		371,354		34,023,453
The Allstate Corp.		58,400		4,068,144
The Travelers Cos., Inc.		32,387		3,274,650
W. R. Berkley Corp.		81,806		4,007,676
				63,656,962
Materials 2.0%
Ashland, Inc.		120,100		15,175,836
Crown Holdings, Inc. *		112,530		6,105,878
Graphic Packaging Holding Co.		244,385		3,445,828
International Paper Co.		27,117		1,456,725
LyondellBasell Industries N.V., Class A		26,104		2,702,286
PolyOne Corp.		191,260		7,468,703
Steel Dynamics, Inc.		528,097		11,686,787
				48,042,043
Media 1.3%
Comcast Corp., Class A		510,187		29,468,401
Pharmaceuticals, Biotechnology & Life Sciences 11.2%
Amgen, Inc.		350,442		55,338,296
Biogen, Inc. *		29,975		11,208,552
Celgene Corp. *		185,382		20,032,379
Gilead Sciences, Inc. *		440,679		44,292,647
Johnson & Johnson		253,616		25,158,707
Merck & Co., Inc.		338,595		20,166,718
PAREXEL International Corp. *		162,430		10,326,487
Pfizer, Inc.		2,318,632		78,671,184
				265,194,970
Real Estate 3.3%
CBL & Associates Properties, Inc.		101,771		1,832,896
Equity Residential		46,643		3,445,052
General Growth Properties, Inc.		512,258		14,035,869
Simon Property Group, Inc.		159,090		28,873,244
SL Green Realty Corp.		244,909		29,967,065
				78,154,126
Retailing 7.5%
Best Buy Co., Inc.		374,483		12,975,836
Expedia, Inc.		413,436		38,958,074
L Brands, Inc.		40,399		3,610,055
Liberty Interactive Corp., Class A *		511,400		14,707,864
Lowe’s Cos., Inc.		844,799		58,172,859
Macy’s, Inc.		486,616		31,449,992
The Gap, Inc.		308,643		12,234,609
The Home Depot, Inc.		47,694		5,102,304
				177,211,593
Semiconductors & Semiconductor Equipment 0.5%
Intel Corp.		350,808		11,418,800
Software & Services 11.8%
Accenture plc, Class A		162,812		15,084,532
AOL, Inc. *		435,603		17,380,560
Broadridge Financial Solutions, Inc.		150,973		8,140,464
Computer Sciences Corp.		793,062		51,112,846
Electronic Arts, Inc. *		293,712		17,061,730
Google, Inc., Class A *		24,223		13,292,856
Google, Inc., Class C *		16,746		8,998,211
Leidos Holdings, Inc.		165,599		6,895,542
Microsoft Corp.		756,800		36,810,752
Oracle Corp.		1,041,399		45,425,824
Rackspace Hosting, Inc. *		215,199		11,599,226
Synopsys, Inc. *		474,942		22,265,281
Xerox Corp.		2,286,742		26,297,533
				280,365,357
Technology Hardware & Equipment 7.9%
Apple, Inc.		940,980		117,763,647
Corning, Inc.		214,735		4,494,403
EMC Corp.		93,071		2,504,541
F5 Networks, Inc. *		55,380		6,757,468
Hewlett-Packard Co.		1,147,369		37,828,756
NetApp, Inc.		110,387		4,001,529
Seagate Technology plc		87,491		5,137,471
Western Digital Corp.		75,980		7,426,285
				185,914,100
Telecommunication Services 1.0%
Verizon Communications, Inc.		465,714		23,490,614
Transportation 2.7%
Delta Air Lines, Inc.		618,634		27,615,821
FedEx Corp.		108,449		18,389,697
United Continental Holdings, Inc. *		74,881		4,473,391
United Parcel Service, Inc., Class B		140,877		14,162,365
				64,641,274
Utilities 4.6%
AES Corp.		570,148		7,554,461
American Electric Power Co., Inc.		78,363		4,456,504
Entergy Corp.		594,412		45,876,718
NRG Energy, Inc.		791,718		19,982,962
Public Service Enterprise Group, Inc.		239,516		9,949,495
UGI Corp.		585,071		20,366,320
				108,186,460
Total Common Stock
(Cost $1,937,386,561)				2,350,733,932

20 See financial notes

 Schwab Core Equity Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Other Investment Companies 1.0% of net assets
Money Market Fund 0.7%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b)		17,705,639		17,705,639
Securities Lending Collateral 0.3%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b)		6,109,489		6,109,489
Total Other Investment Companies
(Cost $23,815,128)				23,815,128
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $1,961,796,353 and the unrealized appreciation and depreciation were $428,904,560 and ($16,151,853), respectively, with a net unrealized appreciation of $412,752,707.

*	Non-income producing security.
(a)	All or a portion of this security is on loan. Securities on loan were valued at $6,293,187. Non-cash collateral pledged to the fund for securities on loan amounted to $233,130.
(b)	The rate shown is the 7-day yield.

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Appreciation
	Contracts		($)		($)
Futures Contracts
S&P 500 Index, e-mini, Long, expires 06/19/15		114		11,849,730		88,803

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Common Stock1		$2,350,733,932		$—		$—		$2,350,733,932
Other Investment Companies1		23,815,128		—		—		23,815,128
Total		$2,374,549,060		$—		$—		$2,374,549,060
Other Financial Instruments
Futures Contracts2		$88,803		$—		$—		$88,803

1	As categorized in Portfolio Holdings.
2	Futures contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 21

 Schwab Core Equity Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments, at value (cost $1,955,092,200) including securities on loan of $6,293,187		$2,368,439,571
Collateral invested for securities on loan, at value (cost $6,109,489)	+	6,109,489
Total investments, at value (cost $1,961,201,689)		2,374,549,060
Cash		4,105
Deposit with broker for futures contracts		1,329,400
Receivables:
Fund shares sold		1,613,979
Dividends		1,507,365
Income from securities on loan		15,773
Prepaid expenses	+	17,381
Total assets		2,379,037,063
Liabilities
Collateral held for securities on loan		6,109,489
Payables:
Investment adviser and administrator fees		218,234
Shareholder service fees		80,406
Fund shares redeemed		1,823,291
Variation margin on futures contracts		114,570
Accrued expenses	+	101,539
Total liabilities		8,447,529
Net Assets
Total assets		2,379,037,063
Total liabilities	−	8,447,529
Net assets		$2,370,589,534
Net Assets by Source
Capital received from investors		1,795,470,059
Net investment income not yet distributed		10,821,099
Net realized capital gains		150,862,202
Net unrealized capital appreciation		413,436,174
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$2,370,589,534		103,414,892			$22.92

22 See financial notes

 Schwab Core Equity Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends		$24,960,424
Interest		73
Securities on loan	+	441,538
Total investment income		25,402,035
Expenses
Investment adviser and administrator fees		5,498,103
Shareholder service fees		2,913,425
Shareholder reports		43,037
Portfolio accounting fees		40,199
Transfer agent fees		30,724
Registration fees		25,621
Custodian fees		23,899
Professional fees		19,184
Independent trustees’ fees		8,355
Interest expense		98
Other expenses	+	34,688
Total expenses		8,637,333
Expense reduction by CSIM and its affiliates	−	30,724
Net expenses	−	8,606,609
Net investment income		16,795,426
Realized and Unrealized Gains (Losses)
Net realized gains on investments		174,022,290
Net realized losses on futures contracts	+	(573,222	)
Net realized gains		173,449,068
Net change in unrealized appreciation (depreciation) on investments		(78,894,562	)
Net change in unrealized appreciation (depreciation) on futures contracts	+	(192,442	)
Net change in unrealized appreciation (depreciation)	+	(79,087,004	)
Net realized and unrealized gains		94,362,064
Increase in net assets resulting from operations		$111,157,490

See financial notes 23

 Schwab Core Equity Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$16,795,426			$27,282,370
Net realized gains		173,449,068			321,767,221
Net change in unrealized appreciation (depreciation)	+	(79,087,004	)		32,031,539
Increase in net assets from operations		111,157,490			381,081,130
Distributions to Shareholders
Distributions from net investment income		(30,311,016	)		(21,200,511	)
Distributions from net realized gains	+	(308,068,333	)		(157,596,466	)
Total distributions		($338,379,349	)		($178,796,977	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			7,785,979		$178,944,299			10,594,267		$247,389,415
Shares reinvested			10,461,915		236,857,753			4,044,873		89,432,146
Shares redeemed	+		(5,767,174	)	(135,319,714	)		(19,480,472	)	(468,899,959	)
Net transactions in fund shares			12,480,720		$280,482,338			(4,841,332	)	($132,078,398	)
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			90,934,172		$2,317,329,055			95,775,504		$2,247,123,300
Total increase or decrease	+		12,480,720		53,260,479			(4,841,332	)	70,205,755
End of period			103,414,892		$2,370,589,534			90,934,172		$2,317,329,055
Net investment income not yet distributed					$10,821,099					$24,336,689

24 See financial notes

Schwab Dividend Equity Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		19.17			18.22			14.52			13.15			12.08			10.94
Income (loss) from investment operations:
Net investment income (loss)		0.16	1		0.27			0.32			0.27			0.23			0.21
Net realized and unrealized gains (losses)		0.44			2.16			3.70			1.38			1.06			1.14
Total from investment operations		0.60			2.43			4.02			1.65			1.29			1.35
Less distributions:
Distributions from net investment income		(0.15	)		(0.29	)		(0.32	)		(0.28	)		(0.22	)		(0.21	)
Distributions from net realized gains		(2.55	)		(1.19	)		—			—			—			—
Total distributions		(2.70	)		(1.48	)		(0.32	)		(0.28	)		(0.22	)		(0.21	)
Net asset value at end of period		17.07			19.17			18.22			14.52			13.15			12.08
Total return (%)		3.25	2		14.26			27.99			12.65			10.73			12.42
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		0.88	3		0.89			0.89			0.89			0.89			0.89
Gross operating expenses		0.88	3		0.89			0.89			0.89			0.89			0.89
Net investment income (loss)		1.81	3		1.47			1.97			1.89			1.77			1.74
Portfolio turnover rate		35	2		72			64			55			31			37
Net assets, end of period ($ x 1,000,000)		2,008			2,053			1,804			1,390			1,325			1,322

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

See financial notes 25

 Schwab Dividend Equity Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.4%	Common Stock		1,741,187,668		1,995,507,160
	0	.6%	Short-Term Investment		12,668,864		12,668,864
	100	.0%	Total Investments		1,753,856,532		2,008,176,024
	(0	.0%)	Other Assets and Liabilities, Net				(8,157	)
	100	.0%	Net Assets				2,008,167,867

	Number		Value
Security	of Shares		($)
Common Stock 99.4% of net assets
Automobiles & Components 1.4%
Dana Holding Corp.		335,912		7,245,622
Delphi Automotive plc		6,153		510,699
General Motors Co.		583,591		20,460,700
				28,217,021
Banks 10.1%
Citigroup, Inc.		738,523		39,378,046
First Niagara Financial Group, Inc.		387,000		3,519,765
Huntington Bancshares, Inc.		430,000		4,669,800
JPMorgan Chase & Co.		1,386,080		87,683,421
Radian Group, Inc.		218,936		3,910,197
Regions Financial Corp.		376,400		3,700,012
The PNC Financial Services Group, Inc.		106,746		9,791,811
Wells Fargo & Co.		917,824		50,572,102
				203,225,154
Capital Goods 8.1%
3M Co.		38,804		6,068,557
Allison Transmission Holdings, Inc.		190,831		5,854,695
Caterpillar, Inc.		253,725		22,043,628
Emerson Electric Co.		329,700		19,396,251
General Dynamics Corp.		319,313		43,848,061
General Electric Co.		462,800		12,532,624
Huntington Ingalls Industries, Inc.		61,235		8,057,914
Lockheed Martin Corp.		11,391		2,125,561
Stanley Black & Decker, Inc.		408,718		40,340,467
United Rentals, Inc. *		28,412		2,744,031
				163,011,789
Commercial & Professional Supplies 1.5%
KAR Auction Services, Inc.		47,300		1,760,033
Pitney Bowes, Inc.		292,563		6,544,634
R.R. Donnelley & Sons Co.		1,186,316		22,089,204
				30,393,871
Consumer Services 0.6%
Vail Resorts, Inc.		118,884		11,794,482
Diversified Financials 5.8%
Affiliated Managers Group, Inc. *		24,804		5,608,928
Berkshire Hathaway, Inc., Class B *		79,842		11,274,489
Interactive Brokers Group, Inc., Class A		45,575		1,547,271
Janus Capital Group, Inc.		120,561		2,158,042
Lazard Ltd., Class A		678,120		35,960,704
Morgan Stanley		1,128,632		42,109,260
The Goldman Sachs Group, Inc.		42,930		8,432,311
Voya Financial, Inc.		239,663		10,147,331
				117,238,336
Energy 10.9%
Chevron Corp.		376,315		41,793,544
ConocoPhillips		703,270		47,766,098
CVR Energy, Inc.		150,739		6,035,590
Exxon Mobil Corp.		471,144		41,163,851
Marathon Oil Corp.		320,700		9,973,770
Murphy Oil Corp.		87,058		4,144,831
Nabors Industries Ltd.		405,453		6,771,065
National Oilwell Varco, Inc.		195,932		10,660,660
Tesoro Corp.		113,700		9,758,871
Valero Energy Corp.		684,401		38,942,417
Western Refining, Inc.		32,310		1,423,256
				218,433,953
Food & Staples Retailing 4.9%
Costco Wholesale Corp.		256,738		36,726,371
The Kroger Co.		528,578		36,424,310
Wal-Mart Stores, Inc.		331,489		25,872,716
				99,023,397
Food, Beverage & Tobacco 4.1%
Archer-Daniels-Midland Co.		828,103		40,477,675
Dr Pepper Snapple Group, Inc.		197,905		14,759,755
PepsiCo, Inc.		218,988		20,830,139
Pilgrim’s Pride Corp.		277,445		6,852,891
				82,920,460
Health Care Equipment & Services 3.9%
Aetna, Inc.		126,601		13,529,849
C.R. Bard, Inc.		55,800		9,295,164
Cardinal Health, Inc.		431,608		36,401,819
Centene Corp. *		242,550		15,035,674
McKesson Corp.		21,910		4,894,694
				79,157,200

26 See financial notes

 Schwab Dividend Equity Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Household & Personal Products 0.4%
Spectrum Brands Holdings, Inc.		58,048		5,307,329
The Procter & Gamble Co.		23,588		1,875,482
				7,182,811
Insurance 6.0%
AmTrust Financial Services, Inc.		153,839		9,148,806
Aspen Insurance Holdings Ltd.		130,784		6,111,536
Assured Guaranty Ltd.		250,413		6,508,234
Everest Re Group Ltd.		10,792		1,930,797
MetLife, Inc.		531,270		27,248,838
Reinsurance Group of America, Inc.		429,882		39,385,789
The Travelers Cos., Inc.		254,328		25,715,104
W. R. Berkley Corp.		77,969		3,819,701
				119,868,805
Materials 2.7%
Huntsman Corp.		69,900		1,611,195
International Paper Co.		545,447		29,301,413
PolyOne Corp.		163,956		6,402,482
Steel Dynamics, Inc.		724,991		16,044,051
United States Steel Corp.		56,429		1,355,424
				54,714,565
Media 0.3%
The Interpublic Group of Cos., Inc.		253,915		5,291,589
Pharmaceuticals, Biotechnology & Life Sciences 9.9%
Amgen, Inc.		216,972		34,262,048
Gilead Sciences, Inc. *		118,586		11,919,079
Johnson & Johnson		149,900		14,870,080
Merck & Co., Inc.		871,341		51,897,070
PAREXEL International Corp. *		60,910		3,872,353
Pfizer, Inc.		2,401,074		81,468,441
				198,289,071
Real Estate 5.6%
Brandywine Realty Trust		203,818		2,971,666
CBL & Associates Properties, Inc.		157,146		2,830,200
Duke Realty Corp.		1,409,778		27,927,702
Equity LifeStyle Properties, Inc.		175,148		9,251,317
Equity Residential		71,100		5,251,446
General Growth Properties, Inc.		101,769		2,788,471
Highwoods Properties, Inc.		23,380		1,006,275
Kilroy Realty Corp.		112,898		8,014,629
Retail Properties of America, Inc., Class A		597,000		9,020,670
RLJ Lodging Trust		142,000		4,213,140
Simon Property Group, Inc.		68,893		12,503,391
SL Green Realty Corp.		184,948		22,630,237
UDR, Inc.		102,692		3,365,217
				111,774,361
Retailing 4.3%
Best Buy Co., Inc.		333,863		11,568,353
Expedia, Inc.		305,541		28,791,128
Lowe’s Cos., Inc.		437,677		30,138,438
Macy’s, Inc.		130,499		8,434,150
The Gap, Inc.		167,143		6,625,549
				85,557,618
Semiconductors & Semiconductor Equipment 1.4%
Intel Corp.		841,990		27,406,775
Software & Services 4.8%
Accenture plc, Class A		22,271		2,063,408
AOL, Inc. *		24,127		962,667
Broadridge Financial Solutions, Inc.		23,665		1,276,017
Computer Sciences Corp.		585,415		37,729,997
Electronic Arts, Inc. *		238,153		13,834,308
Leidos Holdings, Inc.		228,411		9,511,034
Microsoft Corp.		477,374		23,219,471
Rackspace Hosting, Inc. *		97,795		5,271,151
Xerox Corp.		258,734		2,975,441
				96,843,494
Technology Hardware & Equipment 4.4%
Apple, Inc.		247,827		31,015,549
Corning, Inc.		302,242		6,325,925
F5 Networks, Inc. *		48,271		5,890,027
Hewlett-Packard Co.		1,076,400		35,488,908
NetApp, Inc.		243,374		8,822,308
				87,542,717
Telecommunication Services 1.5%
AT&T, Inc.		495,286		17,156,707
CenturyLink, Inc.		355,099		12,769,360
Frontier Communications Corp.		8,865		60,814
				29,986,881
Transportation 0.5%
Alaska Air Group, Inc.		44,771		2,868,030
Southwest Airlines Co.		199,443		8,089,408
				10,957,438
Utilities 6.3%
AES Corp.		854,365		11,320,336
American Electric Power Co., Inc.		490,867		27,915,606
Entergy Corp.		487,549		37,629,032
NRG Energy, Inc.		955,907		24,127,093
UGI Corp.		737,814		25,683,305
				126,675,372
Total Common Stock
(Cost $1,741,187,668)				1,995,507,160

See financial notes 27

 Schwab Dividend Equity Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investment 0.6% of net assets
Time Deposit 0.6%
JPMorgan Chase Bank
0.03%, 05/01/15		12,668,864		12,668,864
Total Short-Term Investment
(Cost $12,668,864)				12,668,864
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $1,753,986,556 and the unrealized appreciation and depreciation were $283,891,571 and ($29,702,103), respectively, with a net unrealized appreciation of $254,189,468.

* Non-income producing security.

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Appreciation
	Contracts		($)		($)
Futures Contracts
S&P 500 Index, e-mini, Long, expires 06/19/15		98		10,186,610		180,417

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Common Stock1		$1,995,507,160		$—		$—		$1,995,507,160
Short-Term Investment1		—		12,668,864		—		12,668,864
Total		$1,995,507,160		$12,668,864		$—		$2,008,176,024
Other Financial Instruments
Futures Contracts2		$180,417		$—		$—		$180,417

1	As categorized in Portfolio Holdings.
2	Futures contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

28 See financial notes

 Schwab Dividend Equity Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments, at value (cost $1,753,856,532)		$2,008,176,024
Deposit with broker for futures contracts		450,800
Receivables:
Investments sold		7,655,651
Dividends		1,484,391
Fund shares sold		1,390,535
Interest		11
Prepaid expenses	+	13,435
Total assets		2,019,170,847
Liabilities
Payables:
Investments bought		5,727,436
Investment adviser and administrator fees		243,097
Shareholder service fees		99,448
Fund shares redeemed		4,725,203
Variation margin on futures contracts		98,490
Accrued expenses	+	109,306
Total liabilities		11,002,980
Net Assets
Total assets		2,019,170,847
Total liabilities	−	11,002,980
Net assets		$2,008,167,867
Net Assets by Source
Capital received from investors		1,616,261,072
Net investment income not yet distributed		1,099,138
Net realized capital gains		136,307,748
Net unrealized capital appreciation		254,499,909
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$2,008,167,867		117,661,407			$17.07

See financial notes 29

 Schwab Dividend Equity Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends		$27,307,127
Interest	+	3,112
Total investment income		27,310,239
Expenses
Investment adviser and administrator fees		6,285,624
Shareholder service fees		2,477,272
Shareholder reports		39,678
Portfolio accounting fees		39,563
Registration fees		25,972
Custodian fees		21,303
Professional fees		20,891
Transfer agent fees		20,190
Independent trustees’ fees		7,764
Other expenses	+	28,987
Total expenses		8,967,244
Expense reduction by CSIM and its affiliates	−	20,190
Net expenses	−	8,947,054
Net investment income		18,363,185
Realized and Unrealized Gains (Losses)
Net realized gains on investments		136,130,585
Net realized gains on futures contracts	+	50,701
Net realized gains		136,181,286
Net change in unrealized appreciation (depreciation) on investments		(87,470,623	)
Net change in unrealized appreciation (depreciation) on futures contracts	+	(22,991	)
Net change in unrealized appreciation (depreciation)	+	(87,493,614	)
Net realized and unrealized gains		48,687,672
Increase in net assets resulting from operations		$67,050,857

30 See financial notes

 Schwab Dividend Equity Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$18,363,185			$28,562,537
Net realized gains		136,181,286			273,148,591
Net change in unrealized appreciation (depreciation)	+	(87,493,614	)		(45,088,782	)
Increase in net assets from operations		67,050,857			256,622,346
Distributions to Shareholders
Distributions from net investment income		(17,264,047	)		(30,034,449	)
Distributions from net realized gains	+	(272,348,613	)		(118,279,747	)
Total distributions		($289,612,660	)		($148,314,196	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			8,559,650		$147,278,809			17,591,274		$317,805,473
Shares reinvested			11,708,977		199,313,294			5,046,536		87,839,410
Shares redeemed	+		(9,731,478	)	(169,093,360	)		(14,499,226	)	(264,363,089	)
Net transactions in fund shares			10,537,149		$177,498,743			8,138,584		$141,281,794
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			107,124,258		$2,053,230,927			98,985,674		$1,803,640,983
Total increase or decrease	+		10,537,149		(45,063,060	)		8,138,584		249,589,944
End of period			117,661,407		$2,008,167,867			107,124,258		$2,053,230,927
Net investment income not yet distributed					$1,099,138					$—

See financial notes 31

Schwab Large-Cap Growth Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		18.38			15.66			12.48			11.18			10.48			9.10
Income (loss) from investment operations:
Net investment income (loss)		0.09	1		0.11			0.14			0.07			0.07			0.05
Net realized and unrealized gains (losses)		1.03			2.70			3.17			1.29			0.69			1.39
Total from investment operations		1.12			2.81			3.31			1.36			0.76			1.44
Less distributions:
Distributions from net investment income		(0.09	)		(0.09	)		(0.13	)		(0.06	)		(0.06	)		(0.06	)
Distributions from net realized gains		(1.82	)		—			—			—			—			—
Total distributions		(1.91	)		(0.09	)		(0.13	)		(0.06	)		(0.06	)		(0.06	)
Net asset value at end of period		17.59			18.38			15.66			12.48			11.18			10.48
Total return (%)		6.46	2		18.06			26.76			12.18			7.25			15.83
Ratios/Supplemental Data (%)
Ratios to average net assets:		��
Net operating expenses		0.99	3		0.99			0.99			0.99			0.99			1.00	4
Gross operating expenses		1.03	3		1.04			1.05			1.05			1.05			1.04
Net investment income (loss)		1.00	3		0.60			1.00			0.53			0.56			0.39
Portfolio turnover rate		44	2		82			87			79			62			57
Net assets, end of period ($ x 1,000,000)		259			256			253			217			213			219

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

⁴ The ratio of net operating expenses would have been 0.99%, if certain non-routine expenses had not been incurred.

32 See financial notes

 Schwab Large-Cap Growth Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.2%	Common Stock		210,165,779		256,879,913
	0	.8%	Other Investment Company		2,156,626		2,156,626
	0	.8%	Short-Term Investment		1,929,741		1,929,741
	100	.8%	Total Investments		214,252,146		260,966,280
	(0	.8%)	Other Assets and Liabilities, Net				(2,000,737	)
	100	.0%	Net Assets				258,965,543

	Number		Value
Security	of Shares		($)
Common Stock 99.2% of net assets
Automobiles & Components 2.2%
Dana Holding Corp.		81,901		1,766,604
Delphi Automotive plc		43,901		3,643,783
General Motors Co.		9,193		322,307
				5,732,694
Banks 1.5%
JPMorgan Chase & Co.		12,865		813,840
Radian Group, Inc.		178,398		3,186,188
				4,000,028
Capital Goods 8.2%
Emerson Electric Co.		11,500		676,545
General Dynamics Corp.		33,352		4,579,897
Huntington Ingalls Industries, Inc.		32,893		4,328,390
Masco Corp.		103,540		2,742,774
Spirit AeroSystems Holdings, Inc., Class A *		32,210		1,639,167
Stanley Black & Decker, Inc.		51,417		5,074,858
United Rentals, Inc. *		23,974		2,315,409
				21,357,040
Commercial & Professional Supplies 1.4%
R.R. Donnelley & Sons Co.		201,500		3,751,930
Consumer Durables & Apparel 0.7%
Deckers Outdoor Corp. *		16,772		1,241,128
NIKE, Inc., Class B		4,468		441,617
				1,682,745
Consumer Services 1.0%
Cracker Barrel Old Country Store, Inc.		1,133		150,100
Vail Resorts, Inc.		24,376		2,418,343
				2,568,443
Diversified Financials 3.2%
Affiliated Managers Group, Inc. *		8,666		1,959,643
Lazard Ltd., Class A		62,985		3,340,094
The Goldman Sachs Group, Inc.		8,983		1,764,441
Voya Financial, Inc.		27,672		1,171,632
				8,235,810
Energy 3.7%
ConocoPhillips		20,200		1,371,984
CVR Energy, Inc.		12,427		497,577
EOG Resources, Inc.		27,095		2,681,050
Marathon Petroleum Corp.		3,917		386,099
National Oilwell Varco, Inc.		12,542		682,410
Tesoro Corp.		5,852		502,277
Valero Energy Corp.		58,590		3,333,771
				9,455,168
Food & Staples Retailing 3.5%
Costco Wholesale Corp.		22,020		3,149,961
The Kroger Co.		86,621		5,969,053
				9,119,014
Food, Beverage & Tobacco 7.5%
Archer-Daniels-Midland Co.		92,802		4,536,162
Dr Pepper Snapple Group, Inc.		66,974		4,994,921
PepsiCo, Inc.		86,828		8,259,079
Pilgrim’s Pride Corp. (a)		67,848		1,675,846
				19,466,008
Health Care Equipment & Services 4.6%
C.R. Bard, Inc.		18,788		3,129,705
Cardinal Health, Inc.		36,645		3,090,639
Centene Corp. *		28,200		1,748,118
Community Health Systems, Inc. *		16,981		911,540
Hologic, Inc. *		23,532		793,970
McKesson Corp.		5,707		1,274,944
Molina Healthcare, Inc. *		17,746		1,051,095
				12,000,011
Household & Personal Products 1.0%
Spectrum Brands Holdings, Inc.		27,382		2,503,536
Insurance 1.4%
CNA Financial Corp.		5,274		212,542
Reinsurance Group of America, Inc.		37,534		3,438,865
				3,651,407
Materials 3.3%
LyondellBasell Industries N.V., Class A		24,602		2,546,799

See financial notes 33

 Schwab Large-Cap Growth Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
PolyOne Corp.		109,506		4,276,209
Steel Dynamics, Inc.		36,761		813,521
United States Steel Corp.		33,000		792,660
				8,429,189
Media 3.1%
Comcast Corp., Class A		105,149		6,073,406
Scripps Networks Interactive, Inc., Class A		5,298		370,118
Starz, Class A *		25,000		983,250
The Interpublic Group of Cos., Inc.		29,014		604,652
				8,031,426
Pharmaceuticals, Biotechnology & Life Sciences 10.7%
AbbVie, Inc.		34,000		2,198,440
Amgen, Inc.		47,432		7,489,987
Biogen, Inc. *		6,087		2,276,112
Celgene Corp. *		23,684		2,559,293
Gilead Sciences, Inc. *		80,438		8,084,823
PAREXEL International Corp. *		51,378		3,266,356
Pfizer, Inc.		54,263		1,841,144
				27,716,155
Real Estate 1.9%
SL Green Realty Corp.		39,952		4,888,527
Retailing 9.4%
Best Buy Co., Inc.		46,800		1,621,620
Big Lots, Inc.		56,727		2,585,049
Expedia, Inc.		56,057		5,282,251
Lowe’s Cos., Inc.		93,014		6,404,944
Macy’s, Inc.		67,550		4,365,757
The Gap, Inc.		76,911		3,048,752
The Home Depot, Inc.		6,239		667,448
The TJX Cos., Inc.		5,338		344,515
				24,320,336
Semiconductors & Semiconductor Equipment 0.4%
Skyworks Solutions, Inc.		11,322		1,044,455
Software & Services 15.3%
AOL, Inc. *		84,356		3,365,804
Broadridge Financial Solutions, Inc.		38,319		2,066,160
Computer Sciences Corp.		75,503		4,866,168
eBay, Inc. *		8,983		523,350
Electronic Arts, Inc. *		46,894		2,724,072
Facebook, Inc., Class A *		43,557		3,430,985
Google, Inc., Class A *		6,100		3,347,497
Google, Inc., Class C *		5,816		3,125,127
IAC/InterActiveCorp		4,600		321,172
j2 Global, Inc.		11,224		778,609
Leidos Holdings, Inc.		88,304		3,676,979
Microsoft Corp.		141,900		6,902,016
NeuStar, Inc., Class A *(a)		20,061		601,830
Rackspace Hosting, Inc. *		48,854		2,633,231
ServiceNow, Inc. *		10,500		786,030
Xerox Corp.		43,559		500,929
				39,649,959
Technology Hardware & Equipment 10.5%
Apple, Inc.		165,669		20,733,475
ARRIS Group, Inc. *		21,334		718,423
CDW Corp.		20,500		785,560
F5 Networks, Inc. *		13,327		1,626,161
Hewlett-Packard Co.		64,755		2,134,972
NetApp, Inc.		29,972		1,086,485
				27,085,076
Telecommunication Services 0.4%
Verizon Communications, Inc.		20,331		1,025,496
Transportation 2.7%
Alaska Air Group, Inc.		25,235		1,616,554
Avis Budget Group, Inc. *		3,781		204,704
Delta Air Lines, Inc.		61,486		2,744,735
Matson, Inc.		34,000		1,377,000
Southwest Airlines Co.		28,052		1,137,789
				7,080,782
Utilities 1.6%
Entergy Corp.		40,618		3,134,897
NRG Energy, Inc.		37,630		949,781
				4,084,678
Total Common Stock
(Cost $210,165,779)				256,879,913
Other Investment Company 0.8% of net assets
Securities Lending Collateral 0.8%
Wells Fargo Advantage Government Money Market Fund, Institutional Class 0.01% (b)		2,156,626		2,156,626
Total Other Investment Company
(Cost $2,156,626)				2,156,626
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investment 0.8% of net assets
Time Deposit 0.8%
JPMorgan Chase Bank
0.03%, 05/01/15		1,929,741		1,929,741
Total Short-Term Investment
(Cost $1,929,741)				1,929,741
End of Investments.

34 See financial notes

 Schwab Large-Cap Growth Fund

Portfolio Holdings (Unaudited) continued

At 04/30/15, the tax basis cost of the fund’s investments was $214,252,146 and the unrealized appreciation and depreciation were $48,603,710 and ($1,889,576), respectively, with a net unrealized appreciation of $46,714,134.

*	Non-income producing security.
(a)	All or a portion of this security is on loan. Securities on loan were valued at $2,162,933.
(b)	The rate shown is the 7-day yield.

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Appreciation
	Contracts		($)		($)
Futures Contracts
S&P 500 Index, e-mini, Long, expires 06/19/15		15		1,559,175		27,615

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Common Stock1		$256,879,913		$—		$—		$256,879,913
Other Investment Company1		2,156,626		—		—		2,156,626
Short-Term Investment1		—		1,929,741		—		1,929,741
Total		$259,036,539		$1,929,741		$—		$260,966,280
Other Financial Instruments
Futures Contracts2		$27,615		$—		$—		$27,615

1	As categorized in Portfolio Holdings.
2	Futures contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 35

 Schwab Large-Cap Growth Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments, at value (cost $212,095,520) including securities on loan of $2,162,933		$258,809,654
Collateral invested for securities on loan, at value (cost $2,156,626)	+	2,156,626
Total investments, at value (cost $214,252,146)		260,966,280
Deposit with broker for futures contracts		69,000
Receivables:
Investments sold		7,863,782
Fund shares sold		179,598
Dividends		124,416
Income from securities on loan		8,837
Prepaid expenses	+	3,201
Total assets		269,215,114
Liabilities
Collateral held for securities on loan		2,156,626
Payables:
Investments bought		7,823,410
Investment adviser and administrator fees		35,570
Shareholder service fees		13,298
Fund shares redeemed		150,763
Variation margin on futures contracts		15,075
Accrued expenses	+	54,829
Total liabilities		10,249,571
Net Assets
Total assets		269,215,114
Total liabilities	−	10,249,571
Net assets		$258,965,543
Net Assets by Source
Capital received from investors		194,100,476
Net investment income not yet distributed		1,026,544
Net realized capital gains		17,096,774
Net unrealized capital appreciation		46,741,749
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$258,965,543		14,726,287			$17.59

36 See financial notes

 Schwab Large-Cap Growth Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends		$2,518,692
Interest		368
Securities on loan	+	32,476
Total investment income		2,551,536
Expenses
Investment adviser and administrator fees		921,138
Shareholder service fees		313,508
Portfolio accounting fees		20,488
Professional fees		16,964
Shareholder reports		15,039
Transfer agent fees		13,050
Registration fees		9,390
Custodian fees		4,793
Independent trustees’ fees		3,701
Other expenses	+	5,664
Total expenses		1,323,735
Expense reduction by CSIM and its affiliates	−	57,170
Net expenses	−	1,266,565
Net investment income		1,284,971
Realized and Unrealized Gains (Losses)
Net realized gains on investments		16,971,309
Net realized gains on futures contracts	+	78,679
Net realized gains		17,049,988
Net change in unrealized appreciation (depreciation) on investments		(2,148,152	)
Net change in unrealized appreciation (depreciation) on futures contracts	+	15,428
Net change in unrealized appreciation (depreciation)	+	(2,132,724	)
Net realized and unrealized gains		14,917,264
Increase in net assets resulting from operations		$16,202,235

See financial notes 37

 Schwab Large-Cap Growth Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$1,284,971			$1,533,883
Net realized gains		17,049,988			39,312,198
Net change in unrealized appreciation (depreciation)	+	(2,132,724	)		1,502,772
Increase in net assets from operations		16,202,235			42,348,853
Distributions to Shareholders
Distributions from net investment income		(1,230,983	)		(1,490,864	)
Distributions from net realized gains	+	(25,103,219	)		—
Total distributions		($26,334,202	)		($1,490,864	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			974,797		$16,844,733			1,209,235		$20,323,834
Shares reinvested			883,607		14,985,971			49,885		793,166
Shares redeemed	+		(1,059,739	)	(18,711,506	)		(3,467,366	)	(58,680,881	)
Net transactions in fund shares			798,665		$13,119,198			(2,208,246	)	($37,563,881	)
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			13,927,622		$255,978,312			16,135,868		$252,684,204
Total increase or decrease	+		798,665		2,987,231			(2,208,246	)	3,294,108
End of period			14,726,287		$258,965,543			13,927,622		$255,978,312
Net investment income not yet distributed					$1,026,544					$972,556

38 See financial notes

Schwab Small-Cap Equity Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		25.11			24.87			17.72			15.61			13.96			11.14
Income (loss) from investment operations:
Net investment income (loss)		0.05	1		(0.02	)		0.09			0.02			(0.01	)		(0.04	)
Net realized and unrealized gains (losses)		1.05			2.71			7.16			2.10			1.66			2.86
Total from investment operations		1.10			2.69			7.25			2.12			1.65			2.82
Less distributions:
Distributions from net investment income		(0.02	)		(0.07	)		(0.10	)		(0.01	)		—			��
Distributions from net realized gains		(4.58	)		(2.38	)		—			—			—			—
Total distributions		(4.60	)		(2.45	)		(0.10	)		(0.01	)		—			—
Net asset value at end of period		21.61			25.11			24.87			17.72			15.61			13.96
Total return (%)		5.05	2		11.67			41.10			13.57			11.82			25.31
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		1.09	3		1.10			1.10			1.12			1.11			1.12
Gross operating expenses		1.09	3		1.10			1.11			1.12			1.12			1.14
Net investment income (loss)		0.46	3		(0.10	)		0.42			0.11			(0.05	)		(0.26	)
Portfolio turnover rate		50	2		103			84			101			72			64
Net assets, end of period ($ x 1,000,000)		695			666			590			388			226			219

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

See financial notes 39

 Schwab Small-Cap Equity Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.2%	Common Stock		626,070,001		689,112,837
	2	.7%	Other Investment Company		18,936,540		18,936,540
	1	.3%	Short-Term Investments		9,339,860		9,339,860
	103	.2%	Total Investments		654,346,401		717,389,237
	(3	.2%)	Other Assets and Liabilities, Net				(22,424,857	)
	100	.0%	Net Assets				694,964,380

	Number		Value
Security	of Shares		($)
Common Stock 99.2% of net assets
Automobiles & Components 1.9%
American Axle & Manufacturing Holdings, Inc. *		268,192		6,686,027
Cooper Tire & Rubber Co.		30,747		1,306,440
Dana Holding Corp.		65,738		1,417,969
Tower International, Inc. *		135,298		3,498,806
				12,909,242
Banks 4.5%
1st Source Corp.		31,910		993,039
BancFirst Corp.		13,210		762,481
Banco Latinoamericano de Exportaciones, S.A., Class E		74,387		2,363,275
BNC Bancorp		18,449		336,694
Federal Agricultural Mortgage Corp., Class C		26,439		831,242
Financial Institutions, Inc.		22,109		520,667
First Bancorp (North Carolina)		14,300		232,089
First BanCorp (Puerto Rico) *		1,059,719		6,368,911
First Business Financial Services, Inc.		7,755		352,232
First Community Bancshares, Inc.		27,051		453,375
First Defiance Financial Corp.		10,948		383,180
First Financial Corp.		22,739		771,989
First Interstate BancSystem, Inc., Class A		28,960		783,658
Great Southern Bancorp, Inc.		5,287		208,414
Great Western Bancorp, Inc.		61,832		1,352,266
International Bancshares Corp.		44,030		1,143,899
MainSource Financial Group, Inc.		29,140		560,945
MidSouth Bancorp, Inc.		8,477		109,947
OFG Bancorp		181,222		2,553,418
Preferred Bank		31,993		901,563
PrivateBancorp, Inc.		11,100		411,477
State Bank Financial Corp.		28,107		562,421
Synovus Financial Corp.		148,671		4,112,240
TCF Financial Corp.		188,779		2,956,279
Waterstone Financial, Inc.		18,682		238,009
Wintrust Financial Corp.		3,704		180,533
WSFS Financial Corp.		9,120		649,070
				31,093,313
Capital Goods 5.3%
Accuride Corp. *		69,374		283,046
Aerojet Rocketdyne Holdings, Inc. *		68,072		1,338,296
Altra Industrial Motion Corp.		20,400		537,948
Argan, Inc.		135,404		4,374,903
Blount International, Inc. *		230,349		3,054,428
Briggs & Stratton Corp.		37,419		731,542
Commercial Vehicle Group, Inc. *		29,529		170,087
EMCOR Group, Inc.		51,497		2,298,311
General Cable Corp.		324,928		5,299,576
Griffon Corp.		131,861		2,216,583
Hillenbrand, Inc.		35,954		1,056,688
Hurco Cos., Inc.		9,200		297,712
Kadant, Inc.		20,540		1,046,718
Kaman Corp.		39,241		1,636,742
L.B. Foster Co., Class A		16,000		683,680
Lydall, Inc. *		45,320		1,216,389
Meritor, Inc. *		28,128		369,039
Moog, Inc., Class A *		37,689		2,633,707
National Presto Industries, Inc. (a)		11,293		706,716
Patrick Industries, Inc. *		3,191		191,652
Rexnord Corp. *		143,523		3,801,924
Titan Machinery, Inc. *(a)		15,257		223,515
Tutor Perini Corp. *		28,751		609,521
Wabash National Corp. *		126,135		1,768,413
				36,547,136
Commercial & Professional Supplies 2.1%
ARC Document Solutions, Inc. *		30,710		262,263
CRA International, Inc. *		58,216		1,699,907
Deluxe Corp.		45,901		2,972,090
Ennis, Inc.		12,921		198,725
Heidrick & Struggles International, Inc.		108,455		2,609,427
Hill International, Inc. *		71,178		274,035
Kimball International, Inc., Class B		46,513		470,712
Korn/Ferry International		28,839		909,294
Quad Graphics, Inc.		211,579		4,557,412
Viad Corp.		24,390		648,042
				14,601,907
Consumer Durables & Apparel 1.4%
CSS Industries, Inc.		20,620		584,371
Culp, Inc.		55,471		1,433,925
JAKKS Pacific, Inc. *(a)		374,255		2,496,281
Johnson Outdoors, Inc., Class A		7,100		223,650
Libbey, Inc.		15,237		599,576
Nautilus, Inc. *		70,497		1,185,054

40 See financial notes

 Schwab Small-Cap Equity Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Skechers U.S.A., Inc., Class A *		36,867		3,315,081
				9,837,938
Consumer Services 4.7%
Ascent Capital Group, Inc., Class A *		43,779		1,752,911
Boyd Gaming Corp. *		349,716		4,616,251
Capella Education Co.		22,345		1,207,300
ClubCorp Holdings, Inc.		120,454		2,636,738
Diamond Resorts International, Inc. *		202,567		6,484,170
Isle of Capri Casinos, Inc. *		246,887		3,510,733
K12, Inc. *		236,903		3,830,722
Papa John’s International, Inc.		12,024		737,913
Penn National Gaming, Inc. *		153,465		2,467,717
Regis Corp. *		173,292		2,862,784
Ruby Tuesday, Inc. *		145,886		1,062,050
Strayer Education, Inc. *		17,194		872,080
Universal Technical Institute, Inc.		51,590		435,935
				32,477,304
Diversified Financials 3.0%
Calamos Asset Management, Inc., Class A		61,788		764,318
Cash America International, Inc.		261,126		6,768,386
Consumer Portfolio Services, Inc. *		125,499		801,939
Gain Capital Holdings, Inc.		205,322		2,028,581
Interactive Brokers Group, Inc., Class A		140,190		4,759,451
KCG Holdings, Inc., Class A *		215,587		2,768,137
Manning & Napier, Inc.		20,323		216,033
Nelnet, Inc., Class A		54,400		2,435,488
Oppenheimer Holdings, Inc., Class A		20,296		484,871
				21,027,204
Energy 5.8%
Alon USA Energy, Inc.		313,065		5,037,216
Basic Energy Services, Inc. *		175,753		1,790,923
Cloud Peak Energy, Inc. *		95,161		617,595
Comstock Resources, Inc. (a)		130,948		703,191
Contango Oil & Gas Co. *		39,908		1,000,494
Delek US Holdings, Inc.		116,272		4,292,762
Green Plains, Inc.		170,504		5,309,494
Helix Energy Solutions Group, Inc. *		76,491		1,260,572
ION Geophysical Corp. *		850,167		1,938,381
Matrix Service Co. *		57,590		1,265,252
Nordic American Tankers Ltd.		20,410		249,614
Parker Drilling Co. *		368,640		1,382,400
PBF Energy, Inc., Class A		40,900		1,160,742
Pioneer Energy Services Corp. *		459,778		3,425,346
REX American Resources Corp. *		99,094		6,264,723
SandRidge Energy, Inc. *(a)		254,099		480,247
Tesco Corp.		45,038		579,189
W&T Offshore, Inc. (a)		153,340		985,976
WPX Energy, Inc. *		194,231		2,670,676
				40,414,793
Food & Staples Retailing 1.2%
Liberator Medical Holdings, Inc. (a)		82,340		232,199
SpartanNash, Co.		104,831		3,162,751
SUPERVALU, Inc. *		518,099		4,554,090
Village Super Market, Inc., Class A		18,303		584,415
				8,533,455
Food, Beverage & Tobacco 2.6%
Cal-Maine Foods, Inc. (a)		47,589		2,127,704
Coca-Cola Bottling Co. Consolidated		23,003		2,599,339
Dean Foods Co.		36,861		598,991
Farmer Bros. Co. *		37,968		946,542
Fresh Del Monte Produce, Inc.		14,208		524,701
John B. Sanfilippo & Son, Inc.		54,981		2,859,562
National Beverage Corp. *		7,759		173,414
Omega Protein Corp. *		145,756		1,862,762
Sanderson Farms, Inc. (a)		88,657		6,659,914
				18,352,929
Health Care Equipment & Services 5.0%
Accuray, Inc. *		210,031		1,707,552
Alere, Inc. *		7,200		341,856
Alliance HealthCare Services, Inc. *		8,250		175,478
AngioDynamics, Inc. *		19,638		327,758
Anika Therapeutics, Inc. *		41,470		1,414,956
Bio-Reference Laboratories, Inc. *		6,286		208,192
Cantel Medical Corp.		21,158		947,667
CONMED Corp.		30,439		1,528,951
CryoLife, Inc.		21,349		217,760
Cynosure, Inc., Class A *		7,020		234,608
Exactech, Inc. *		14,757		322,440
Globus Medical, Inc., Class A *		43,685		1,043,635
Greatbatch, Inc. *		76,634		4,132,105
Hill-Rom Holdings, Inc.		11,796		589,092
Integra LifeSciences Holdings Corp. *		12,733		748,446
Merge Healthcare, Inc. *		217,088		1,078,927
Merit Medical Systems, Inc. *		49,595		962,639
Molina Healthcare, Inc. *		124,971		7,402,032
National HealthCare Corp.		11,100		702,630
Natus Medical, Inc. *		32,186		1,213,734
NuVasive, Inc. *		66,768		2,986,533
Quality Systems, Inc.		151,310		2,359,680
RadNet, Inc. *		147,734		1,238,011
SurModics, Inc. *		54,803		1,382,132
Triple-S Management Corp., Class B *		80,389		1,504,882
				34,771,696
Household & Personal Products 1.5%
Central Garden & Pet Co., Class A *		187,525		1,837,745
Coty, Inc., Class A *		58,926		1,408,921
HRG Group, Inc. *		172,970		2,167,314
Medifast, Inc. *		62,412		1,872,360
USANA Health Sciences, Inc. *		26,319		2,993,523
				10,279,863
Insurance 4.2%
American Equity Investment Life Holding Co.		206,363		5,561,483
Aspen Insurance Holdings Ltd.		72,296		3,378,392
Fidelity & Guaranty Life		36,495		816,758

See financial notes 41

 Schwab Small-Cap Equity Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Heritage Insurance Holdings, Inc. *		69,810		1,399,691
Maiden Holdings Ltd.		408,230		5,931,582
National Western Life Insurance Co., Class A		1,897		454,540
Selective Insurance Group, Inc.		138,059		3,719,309
Symetra Financial Corp.		299,874		7,122,008
The Hanover Insurance Group, Inc.		12,898		884,416
				29,268,179
Materials 3.7%
Ampco-Pittsburgh Corp.		21,791		348,438
Boise Cascade Co. *		56,307		1,953,853
Calgon Carbon Corp.		3,603		79,951
Century Aluminum Co. *		460,547		5,936,451
Clearwater Paper Corp. *		20,632		1,319,829
Commercial Metals Co.		108,049		1,793,613
Domtar Corp.		46,924		2,028,055
Headwaters, Inc. *		42,163		741,226
Innophos Holdings, Inc.		24,206		1,279,045
Neenah Paper, Inc.		48,805		2,951,238
Noranda Aluminum Holding Corp.		47,350		158,149
PolyOne Corp.		95,845		3,742,747
Resolute Forest Products, Inc. *		123,018		1,896,938
Trinseo S.A. *		80,297		1,828,363
				26,057,896
Media 1.3%
A. H. Belo Corp., Class A		48,000		321,120
Dex Media, Inc. *(a)		39,336		103,454
Nexstar Broadcasting Group, Inc., Class A		97,188		5,681,610
Sinclair Broadcast Group, Inc., Class A		95,430		2,923,975
				9,030,159
Pharmaceuticals, Biotechnology & Life Sciences 13.3%
Acorda Therapeutics, Inc. *		180,601		5,430,672
Affymetrix, Inc. *		58,424		708,683
AMAG Pharmaceuticals, Inc. *		111,319		5,673,929
Bio-Rad Laboratories, Inc., Class A *		16,933		2,276,642
BioSpecifics Technologies Corp. *		36,710		1,406,360
Dyax Corp. *		165,095		3,947,421
Emergent Biosolutions, Inc. *		267,534		7,943,084
Enanta Pharmaceuticals, Inc. *		45,928		1,572,575
Halozyme Therapeutics, Inc. *		47,162		701,299
Horizon Pharma plc *		96,669		2,718,332
Impax Laboratories, Inc. *		28,675		1,297,831
Infinity Pharmaceuticals, Inc. *		276,415		3,502,178
Ironwood Pharmaceuticals, Inc. *		42,886		585,823
Lannett Co., Inc. *		51,366		2,953,545
Ligand Pharmaceuticals, Inc. *		50,297		3,905,059
MiMedx Group, Inc. *(a)		282,849		2,658,781
NewLink Genetics Corp. *(a)		45,280		2,019,488
Orexigen Therapeutics, Inc. *(a)		30,407		199,774
Osiris Therapeutics, Inc. *		137,017		2,078,548
PAREXEL International Corp. *		122,209		7,769,437
PDL BioPharma, Inc.		396,033		2,641,540
Pernix Therapeutics Holdings, Inc. *		127,694		814,688
Phibro Animal Health Corp., Class A		113,738		3,612,319
POZEN, Inc. *		165,934		1,297,604
Prestige Brands Holdings, Inc. *		98,239		3,855,881
Progenics Pharmaceuticals, Inc. *		173,664		859,637
Repligen Corp. *		171,645		5,065,244
Rigel Pharmaceuticals, Inc. *		79,755		339,756
Sagent Pharmaceuticals, Inc. *		86,680		2,020,511
Sangamo BioSciences, Inc. *		118,045		1,460,217
SciClone Pharmaceuticals, Inc. *		260,697		2,129,894
Spectrum Pharmaceuticals, Inc. *		637,952		3,604,429
Sucampo Pharmaceuticals, Inc., Class A *		102,059		1,812,568
Supernus Pharmaceuticals, Inc. *		61,208		783,462
The Medicines Co. *		103,189		2,642,670
				92,289,881
Real Estate 8.4%
Chambers Street Properties		983,094		7,373,205
CoreSite Realty Corp.		92,080		4,427,206
CyrusOne, Inc.		80,162		2,603,662
DuPont Fabros Technology, Inc.		191,848		5,976,065
Empire State Realty Trust, Inc., Class A		435,973		7,847,514
First Industrial Realty Trust, Inc.		392,600		7,745,998
Highwoods Properties, Inc.		119,729		5,153,136
Marcus & Millichap, Inc. *		31,944		1,130,179
Pennsylvania Real Estate Investment Trust		31,718		717,144
PS Business Parks, Inc.		28,622		2,185,290
RLJ Lodging Trust		83,469		2,476,525
Saul Centers, Inc.		49,218		2,476,650
Summit Hotel Properties, Inc.		562,826		7,412,418
Sunstone Hotel Investors, Inc.		55,696		867,744
				58,392,736
Retailing 4.8%
1-800-Flowers.com, Inc., Class A *		115,574		1,221,617
Barnes & Noble, Inc. *		169,331		3,708,349
Big Lots, Inc.		135,646		6,181,388
Brown Shoe Co., Inc.		31,078		923,017
Build-A-Bear Workshop, Inc. *		109,612		2,020,149
Citi Trends, Inc. *		114,958		2,618,743
Core-Mark Holding Co., Inc.		29,274		1,543,032
Haverty Furniture Cos, Inc.		29,349		629,830
New York & Co., Inc. *		82,500		208,725
Outerwall, Inc.		91,783		6,097,145
Select Comfort Corp. *		170,020		5,240,016
Stage Stores, Inc.		92,096		1,778,374
Stein Mart, Inc.		22,960		271,617
The Cato Corp., Class A		27,691		1,089,364
				33,531,366
Semiconductors & Semiconductor Equipment 3.3%
Alpha & Omega Semiconductor Ltd. *		12,475		102,170
Amkor Technology, Inc. *		358,627		2,521,148
Cohu, Inc.		54,910		574,908
Diodes, Inc. *		89,283		2,385,642
Fairchild Semiconductor International, Inc. *		242,984		4,413,804

42 See financial notes

 Schwab Small-Cap Equity Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
FormFactor, Inc. *		195,390		1,557,258
IXYS Corp.		68,496		774,690
Pericom Semiconductor Corp.		51,100		639,772
Photronics, Inc. *		205,088		1,798,622
Tessera Technologies, Inc.		187,414		6,767,519
Xcerra Corp. *		109,235		1,073,780
				22,609,313
Software & Services 9.2%
AVG Technologies N.V. *		124,968		2,989,235
Blackhawk Network Holdings, Inc. *		153,395		5,640,334
comScore, Inc. *		12,970		679,109
Constant Contact, Inc. *		79,664		2,776,290
CSG Systems International, Inc.		11,532		335,812
Demand Media, Inc. *		48,186		308,872
DHI Group, Inc. *		341,856		2,598,106
EarthLink Holdings Corp.		699,937		3,310,702
Endurance International Group Holdings, Inc. *(a)		90,413		1,658,174
EnerNOC, Inc. *		323,649		3,576,321
ePlus, Inc. *		2,416		200,431
Fair Isaac Corp.		39,213		3,468,782
Fleetmatics Group plc *		14,468		659,451
Higher One Holdings, Inc. *		61,743		173,498
Internap Corp. *		20,226		190,124
Intralinks Holdings, Inc. *		111,799		1,095,630
j2 Global, Inc.		10,173		705,701
LivePerson, Inc. *		235,979		2,218,203
LogMeIn, Inc. *		98,829		6,342,845
ManTech International Corp., Class A		8,446		246,877
MicroStrategy, Inc., Class A *		8,226		1,498,119
Monster Worldwide, Inc. *		479,659		2,825,192
Pegasystems, Inc.		129,100		2,780,814
Progress Software Corp. *		262,480		6,929,472
QAD, Inc., Class A		34,750		847,205
QuinStreet, Inc. *		40,329		218,987
Science Applications International Corp.		98,179		4,918,768
Sykes Enterprises, Inc. *		82,551		2,066,252
TeleCommunication Systems, Inc., Class A *		104,770		326,882
VASCO Data Security International, Inc. *(a)		97,940		2,489,635
				64,075,823
Technology Hardware & Equipment 6.2%
Benchmark Electronics, Inc. *		24,978		587,732
Black Box Corp.		19,582		389,682
Checkpoint Systems, Inc.		84,800		878,528
Diebold, Inc.		89,059		3,096,581
Harmonic, Inc. *		372,828		2,613,524
Insight Enterprises, Inc. *		207,393		5,935,588
Lexmark International, Inc., Class A		145,743		6,469,532
NETGEAR, Inc. *		141,784		4,291,802
Newport Corp. *		89,440		1,705,621
Polycom, Inc. *		328,263		4,283,832
RealD, Inc. *		201,506		2,474,494
Sanmina Corp. *		105,154		2,137,781
Tech Data Corp. *		107,162		6,040,722
Vishay Intertechnology, Inc.		145,645		1,846,778
				42,752,197
Telecommunication Services 1.5%
General Communication, Inc., Class A *		136,086		2,158,324
Hawaiian Telcom Holdco, Inc. *		5,948		156,670
IDT Corp., Class B		264,493		4,504,316
Inteliquent, Inc.		57,554		1,094,102
Premiere Global Services, Inc. *		110,115		1,124,274
Shenandoah Telecommunications Co.		8,300		286,018
Spok Holdings, Inc.		38,190		718,927
Vonage Holdings Corp. *		60,400		279,652
				10,322,283
Transportation 2.8%
Air Transport Services Group, Inc. *		241,571		2,251,442
ArcBest Corp.		117,237		4,185,361
Echo Global Logistics, Inc. *		9,056		261,718
Hawaiian Holdings, Inc. *		208,406		4,810,011
JetBlue Airways Corp. *		178		3,654
Matson, Inc.		111,975		4,534,988
P.A.M. Transportation Services, Inc. *		2,595		152,041
Park-Ohio Holdings Corp.		20,173		934,615
YRC Worldwide, Inc. *		160,404		2,502,302
				19,636,132
Utilities 1.5%
American States Water Co.		94,340		3,621,713
Northwest Natural Gas Co.		64,542		3,014,111
NRG Yield, Inc., Class A		74,477		3,664,268
				10,300,092
Total Common Stock
(Cost $626,070,001)				689,112,837
Other Investment Company 2.7% of net assets
Securities Lending Collateral 2.7%
Wells Fargo Advantage Government Money Market Fund, Institutional Class 0.01% (b)		18,936,540		18,936,540
Total Other Investment Company
(Cost $18,936,540)				18,936,540
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investments 1.3% of net assets
Time Deposits 1.3%
Australia & New Zealand Banking Group Ltd.
0.03%, 05/01/15		2,186,026		2,186,026

See financial notes 43

 Schwab Small-Cap Equity Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
JPMorgan Chase Bank
0.03%, 05/01/15		7,153,834		7,153,834
Total Short-Term Investments
(Cost $9,339,860)				9,339,860
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $654,565,392 and the unrealized appreciation and depreciation were $98,402,879 and ($35,579,034), respectively, with a net unrealized appreciation of $62,823,845.

*	Non-income producing security.
(a)	All or a portion of this security is on loan. Securities on loan were valued at $18,336,630.
(b)	The rate shown is the 7-day yield.

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Depreciation
	Contracts		($)		($)
Futures Contracts
Russell 2000 Index, mini, Long, expires 06/19/15		5		608,200		(4,835	)

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

Assets Valuation Input

	Quoted Prices in					Significant
	Active Markets for			Other Significant		Unobservable
	Identical Assets			Observable Inputs		Inputs
Description	(Level 1)			(Level 2)		(Level 3)		Total
Common Stock1		$689,112,837			$—		$—		$689,112,837
Other Investment Company		18,936,540			—		—		18,936,540
Short-Term Investments1		—			9,339,860		—		9,339,860
Total		$708,049,377			$9,339,860		$—		$717,389,237
Liabilities Valuation Input
Other Financial Instruments
Futures Contracts2		($4,835	)		$—		$—		($4,835	)

1	As categorized in Portfolio Holdings.
2	Futures contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

44 See financial notes

 Schwab Small-Cap Equity Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments, at value (cost $635,409,861) including securities on loan of $18,336,630		$698,452,697
Collateral invested for securities on loan, at value (cost $18,936,540)	+	18,936,540
Total investments, at value (cost $654,346,401)		717,389,237
Deposit with broker for futures contracts		357,000
Receivables:
Investments sold		10,225,671
Fund shares sold		467,919
Dividends		157,048
Income from securities on loan		50,228
Foreign tax reclaims		312
Prepaid expenses	+	8,568
Total assets		728,655,983
Liabilities
Collateral held for securities on loan		18,936,540
Payables:
Investments bought		9,779,985
Investment adviser and administrator fees		112,687
Shareholder service fees		34,526
Fund shares redeemed		4,680,380
Variation margin on futures contracts		77,537
Accrued expenses	+	69,948
Total liabilities		33,691,603
Net Assets
Total assets		728,655,983
Total liabilities	−	33,691,603
Net assets		$694,964,380
Net Assets by Source
Capital received from investors		590,108,600
Net investment income not yet distributed		1,121,369
Net realized capital gains		40,696,410
Net unrealized capital appreciation		63,038,001
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$694,964,380		32,165,271			$21.61

See financial notes 45

 Schwab Small-Cap Equity Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends (net of foreign withholding taxes of $4,872)		$4,702,643
Interest		1,443
Securities on loan	+	574,355
Total investment income		5,278,441
Expenses
Investment adviser and administrator fees		2,767,687
Shareholder service fees		838,666
Portfolio accounting fees		28,952
Shareholder reports		21,177
Registration fees		17,939
Professional fees		17,744
Custodian fees		17,019
Transfer agent fees		13,413
Independent trustees’ fees		4,624
Other expenses	+	7,335
Total expenses		3,734,556
Expense reduction by CSIM and its affiliates	−	13,413
Net expenses	−	3,721,143
Net investment income		1,557,298
Realized and Unrealized Gains (Losses)
Net realized gains on investments		40,861,868
Net realized gains on futures contracts	+	471,762
Net realized gains		41,333,630
Net change in unrealized appreciation (depreciation) on investments		(8,815,467	)
Net change in unrealized appreciation (depreciation) on futures contracts	+	(110,326	)
Net change in unrealized appreciation (depreciation)	+	(8,925,793	)
Net realized and unrealized gains		32,407,837
Increase in net assets resulting from operations		$33,965,135

46 See financial notes

 Schwab Small-Cap Equity Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income (loss)		$1,557,298			($620,550	)
Net realized gains		41,333,630			125,071,693
Net change in unrealized appreciation (depreciation)	+	(8,925,793	)		(55,511,789	)
Increase in net assets from operations		33,965,135			68,939,354
Distributions to Shareholders
Distributions from net investment income		(501,780	)		(1,598,911	)
Distributions from net realized gains	+	(122,791,233	)		(56,889,199	)
Total distributions		($123,293,013	)		($58,488,110	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			4,359,655		$94,612,438			7,201,760		$173,508,919
Shares reinvested			4,347,908		90,523,445			1,076,328		24,841,650
Shares redeemed	+		(3,061,783	)	(66,843,429	)		(5,496,700	)	(133,118,038	)
Net transactions in fund shares			5,645,780		$118,292,454			2,781,388		$65,232,531
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			26,519,491		$665,999,804			23,738,103		$590,316,029
Total increase	+		5,645,780		28,964,576			2,781,388		75,683,775
End of period			32,165,271		$694,964,380			26,519,491		$665,999,804
Net investment income not yet distributed					$1,121,369					$65,851

See financial notes 47

Schwab Hedged Equity Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		19.02			18.62			16.36			15.32			14.79			13.45
Income (loss) from investment operations:
Net investment income (loss)		0.00	1,2		(0.08	)		(0.10	)		(0.08	)		(0.05	)		(0.08	)
Net realized and unrealized gains (losses)		0.52			1.99			2.36			1.12			0.58			1.42
Total from investment operations		0.52			1.91			2.26			1.04			0.53			1.34
Less distributions:
Distributions from net realized gains		(2.44	)		(1.51	)		—			—			—			—
Net asset value at end of period		17.10			19.02			18.62			16.36			15.32			14.79
Total return (%)		2.68	3		11.07			13.81			6.79			3.58			9.96
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses (including dividend expense on short sales)		1.83	4		1.99			2.48			2.08			1.86			1.97
Net operating expenses (excluding dividend expense on short sales)		1.48	4,5		1.52	5		1.48	5		1.53	5		1.44	6		1.38	7
Gross operating expenses		1.86	4		2.02			2.52			2.13			1.88			1.99
Net investment income (loss)		0.05	4		(0.46	)		(0.49	)		(0.47	)		(0.25	)		(0.54	)
Portfolio turnover rate		68	3		142			130			109			98			115
Net assets, end of period ($ x 1,000,000)		201			200			193			194			236			329

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Amount less than $0.005.

³ Not annualized.

⁴ Annualized.

⁵ The ratio of net operating expenses would have been 1.33% for the period ended 10/31/12, 10/31/13, 10/31/14 and 4/30/15, respectively, if stock loan fees on short sales had not been incurred.

⁶ The ratio of net operating expenses would have been 1.33% for the period ended 10/31/11, if stock loan fees on short sales and payment for state filing fees had not been included.

⁷ The ratio of net operating expenses would have been 1.31%, if stock loan fees on short sales had not been incurred.

48 See financial notes

 Schwab Hedged Equity Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost			Value
Holdings by Category				($)			($)
	98	.8%	Common Stock		175,165,048			198,736,357
	1	.2%	Other Investment Company		2,488,738			2,488,738
	100	.0%	Total Investments		177,653,786			201,225,095
	(40	.3)%	Short Sales		(79,405,362	)		(81,030,731	)
	40	.3%	Other Assets and Liabilities, Net					80,958,584
	100	.0%	Net Assets					201,152,948

	Number		Value
Security	of Shares		($)
Common Stock 98.8% of net assets
Automobiles & Components 0.4%
American Axle & Manufacturing Holdings, Inc. *		31,576		787,190
Banks 5.6%
Bank of America Corp.		111,244		1,772,117
Citigroup, Inc. (a)		58,000		3,092,560
Fifth Third Bancorp		49,566		991,320
Radian Group, Inc.		78,723		1,405,993
Regions Financial Corp. (a)		239,500		2,354,285
The PNC Financial Services Group, Inc. (a)		18,477		1,694,895
				11,311,170
Capital Goods 3.4%
Allison Transmission Holdings, Inc.		23,418		718,464
General Dynamics Corp.		2,713		372,549
Huntington Ingalls Industries, Inc.		19,529		2,569,821
Nortek, Inc. *		1,700		143,854
United Rentals, Inc. *		31,510		3,043,236
				6,847,924
Commercial & Professional Supplies 2.1%
Pitney Bowes, Inc.		14,400		322,128
R.R. Donnelley & Sons Co. (a)		210,278		3,915,376
				4,237,504
Consumer Services 2.0%
Boyd Gaming Corp. *		84,908		1,120,786
ClubCorp Holdings, Inc.		24,990		547,031
Penn National Gaming, Inc. *		22,700		365,016
Vail Resorts, Inc.		20,172		2,001,264
				4,034,097
Diversified Financials 4.5%
Affiliated Managers Group, Inc. *		8,000		1,809,040
Cash America International, Inc.		8,300		215,136
Interactive Brokers Group, Inc., Class A (a)		81,199		2,756,706
Lazard Ltd., Class A		30,339		1,608,877
Voya Financial, Inc.		60,733		2,571,435
				8,961,194
Energy 11.0%
Alon USA Energy, Inc.		14,213		228,687
Anadarko Petroleum Corp.		13,046		1,227,629
Chevron Corp.		10,039		1,114,931
ConocoPhillips (a)		51,911		3,525,795
CVR Energy, Inc. (a)		78,773		3,154,071
EOG Resources, Inc. (a)		8,439		835,039
Green Plains, Inc.		19,100		594,774
Kosmos Energy Ltd. *		10,900		106,602
Marathon Oil Corp.		23,700		737,070
National Oilwell Varco, Inc. (a)		50,660		2,756,411
Pioneer Energy Services Corp. *		88,389		658,498
Schlumberger Ltd.		8,341		789,142
SM Energy Co.		31,500		1,826,055
Tesoro Corp.		17,905		1,536,786
Valero Energy Corp.		52,220		2,971,318
				22,062,808
Food & Staples Retailing 1.9%
The Kroger Co. (a)		56,097		3,865,644
Food, Beverage & Tobacco 4.0%
Archer-Daniels-Midland Co. (a)		84,227		4,117,016
Dr Pepper Snapple Group, Inc.		12,752		951,044
Ingredion, Inc.		6,050		480,370
Pilgrim’s Pride Corp. (a)		35,873		886,063
Sanderson Farms, Inc.		22,746		1,708,680
		��
				8,143,173
Health Care Equipment & Services 4.0%
C.R. Bard, Inc.		7,600		1,266,008
Cardinal Health, Inc. (a)		8,400		708,456
Centene Corp. *		2,586		160,306
Edwards Lifesciences Corp. *		12,586		1,594,017
Molina Healthcare, Inc. *(a)		64,579		3,825,014
Surgical Care Affiliates, Inc. *		14,629		551,514
				8,105,315
Household & Personal Products 1.9%
Spectrum Brands Holdings, Inc. (a)		42,340		3,871,146

See financial notes 49

 Schwab Hedged Equity Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Insurance 4.0%
American Equity Investment Life Holding Co. (a)		84,900		2,288,055
Aspen Insurance Holdings Ltd.		26,197		1,224,186
Genworth Financial, Inc., Class A *(a)		82,885		728,559
Reinsurance Group of America, Inc. (a)		39,434		3,612,943
Symetra Financial Corp.		4,900		116,375
				7,970,118
Materials 6.4%
Ashland, Inc.		6,100		770,796
Century Aluminum Co. *		93,371		1,203,552
Graphic Packaging Holding Co. (a)		51,410		724,881
Innophos Holdings, Inc.		38,658		2,042,689
LyondellBasell Industries N.V., Class A		11,528		1,193,379
PolyOne Corp. (a)		89,272		3,486,072
Steel Dynamics, Inc.		50,087		1,108,425
United States Steel Corp. (a)		96,474		2,317,305
				12,847,099
Media 1.1%
Nexstar Broadcasting Group, Inc., Class A		4,130		241,440
The Interpublic Group of Cos., Inc.		92,813		1,934,223
				2,175,663
Pharmaceuticals, Biotechnology & Life Sciences 7.6%
Amgen, Inc. (a)		29,050		4,587,286
Biogen, Inc. *		601		224,732
Celgene Corp. *(a)		8,372		904,678
Gilead Sciences, Inc. *		27,487		2,762,718
PAREXEL International Corp. *		30,720		1,953,024
Pfizer, Inc. (a)		142,876		4,847,783
				15,280,221
Real Estate 4.1%
CBL & Associates Properties, Inc.		8,448		152,148
DuPont Fabros Technology, Inc.		28,196		878,305
Equity LifeStyle Properties, Inc.		34,829		1,839,668
General Growth Properties, Inc.		14,481		396,779
RLJ Lodging Trust (a)		66,501		1,973,085
Simon Property Group, Inc.		2,696		489,297
SL Green Realty Corp.		20,093		2,458,580
				8,187,862
Retailing 10.8%
Best Buy Co., Inc.		33,300		1,153,845
Big Lots, Inc.		5,085		231,724
Expedia, Inc.		23,189		2,185,100
L Brands, Inc.		19,951		1,782,821
Lowe’s Cos., Inc. (a)		51,355		3,536,305
Macy’s, Inc. (a)		55,227		3,569,321
Outerwall, Inc. (a)		61,621		4,093,483
Select Comfort Corp. *		47,469		1,462,995
The Children’s Place, Inc.		9,484		575,299
The Gap, Inc.		79,288		3,142,976
				21,733,869
Semiconductors & Semiconductor Equipment 0.3%
Micron Technology, Inc. *		13,599		382,540
Tessera Technologies, Inc.		4,384		158,306
				540,846
Software & Services 10.0%
AOL, Inc. *(a)		74,224		2,961,537
Computer Sciences Corp. (a)		59,252		3,818,791
comScore, Inc. *		15,711		822,628
Convergys Corp.		32,016		726,123
Electronic Arts, Inc. *(a)		65,555		3,808,090
Leidos Holdings, Inc.		52,719		2,195,219
LogMeIn, Inc. *		10,460		671,323
Microsoft Corp. (a)		25,650		1,247,616
Progress Software Corp. *		17,169		453,262
Rackspace Hosting, Inc. *		4,152		223,793
Science Applications International Corp.		59,308		2,971,331
Xerox Corp.		15,612		179,538
				20,079,251
Technology Hardware & Equipment 7.7%
Apple, Inc. (a)		43,181		5,404,102
Avnet, Inc.		37,286		1,589,502
CDW Corp.		22,477		861,319
Corning, Inc. (a)		121,871		2,550,760
EchoStar Corp., Class A *(a)		2,970		148,500
Hewlett-Packard Co. (a)		53,869		1,776,061
Insight Enterprises, Inc. *		5,304		151,800
Lexmark International, Inc., Class A		3,735		165,797
NetApp, Inc.		53,838		1,951,628
NETGEAR, Inc. *		13,641		412,913
Seagate Technology plc		8,413		494,011
				15,506,393
Transportation 1.8%
ArcBest Corp.		9,592		342,434
Con-way, Inc.		10,862		446,428
Delta Air Lines, Inc.		43,565		1,944,742
United Continental Holdings, Inc. *		16,190		967,191
				3,700,795
Utilities 4.2%
AES Corp. (a)		88,810		1,176,732
Calpine Corp. *(a)		109,174		2,381,085
Entergy Corp. (a)		48,656		3,755,270
NRG Energy, Inc.		35,659		900,033
UGI Corp.		7,870		273,955
				8,487,075
Total Common Stock
(Cost $175,165,048)				198,736,357

50 See financial notes

 Schwab Hedged Equity Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Other Investment Company 1.2% of net assets
Money Market Fund 1.2%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b)		2,488,738		2,488,738
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $178,000,155 and the unrealized appreciation and depreciation were $29,488,553 and ($6,263,613), respectively, with a net unrealized appreciation of $23,224,940.

*	Non-income producing security.
(a)	All or a portion of this security is held as collateral for short sales
(b)	The rate shown is the 7-day yield.

See financial notes 51

 Schwab Hedged Equity Fund

Portfolio Holdings (Unaudited) continued

	Number			Value
Security	of Shares			($)
Short Sales 40.3% of net assets
Automobiles & Components 0.9%
Dorman Products, Inc. *		17,200			805,476
Tesla Motors, Inc. *		4,223			954,609
					1,760,085
Banks 1.6%
Signature Bank *		7,200			965,448
Texas Capital Bancshares, Inc. *		42,927			2,260,536
					3,225,984
Capital Goods 1.1%
Hexcel Corp.		11,816			592,572
Proto Labs, Inc. *		17,067			1,194,690
SolarCity Corp. *		6,200			372,310
					2,159,572
Commercial & Professional Supplies 0.2%
WageWorks, Inc. *		9,652			486,461
Consumer Durables & Apparel 1.6%
Kate Spade & Co. *		64,711			2,116,050
Under Armour, Inc., Class A *		14,100			1,093,455
					3,209,505
Consumer Services 1.3%
Caesars Entertainment Corp. *		3,487			33,092
Sotheby’s		5,668			242,080
Wynn Resorts Ltd.		20,601			2,288,153
					2,563,325
Diversified Financials 0.9%
Financial Engines, Inc.		27,349			1,153,307
SLM Corp.		45,076			459,325
Virtus Investment Partners, Inc.		1,300			173,706
					1,786,338
Energy 5.7%
Cheniere Energy, Inc. *		5,907			451,826
Cobalt International Energy, Inc. *		108,600			1,162,020
Concho Resources, Inc. *		9,641			1,221,129
Diamondback Energy, Inc. *		37,715			3,114,128
Golar LNG Ltd.		25,352			912,545
Scorpio Tankers, Inc.		40,400			377,336
Seadrill Ltd.		124,909			1,635,059
The Williams Cos., Inc.		52,749			2,700,221
					11,574,264
Food & Staples Retailing 1.4%
PriceSmart, Inc.		914			73,540
United Natural Foods, Inc. *		39,874			2,689,900
					2,763,440
Food, Beverage & Tobacco 2.2%
Constellation Brands, Inc., Class A *		22,051			2,556,593
Keurig Green Mountain, Inc.		15,469			1,800,127
					4,356,720
Health Care Equipment & Services 0.6%
Acadia Healthcare Co., Inc. *		17,306			1,185,461
Household & Personal Products 0.6%
Nu Skin Enterprises, Inc., Class A		21,017			1,188,511
Insurance 1.1%
RLI Corp.		46,400			2,304,224
Materials 3.4%
FMC Corp.		25,530			1,514,184
H.B. Fuller Co.		3,271			136,630
Louisiana-Pacific Corp. *		153,703			2,342,434
Southern Copper Corp.		38,432			1,252,115
W.R. Grace & Co. *		17,524	��		1,694,921
					6,940,284
Media 0.7%
DreamWorks Animation SKG, Inc., Class A *		39,400			1,026,764
Loral Space & Communications, Inc. *		5,400			372,600
					1,399,364
Real Estate 2.1%
American Realty Capital Properties, Inc.		227,240			2,051,977
The Howard Hughes Corp. *		14,320			2,126,091
					4,178,068
Retailing 4.7%
Cabela’s, Inc. *		57,012			3,006,813
CarMax, Inc. *		45,862			3,123,661
Lithia Motors, Inc., Class A		9,837			981,044
Netflix, Inc. *		1,619			900,973
Restoration Hardware Holdings, Inc. *		16,263			1,401,383
					9,413,874
Semiconductors & Semiconductor Equipment 1.4%
Cree, Inc. *		26,393			836,130
SunEdison, Inc. *		48,000			1,215,360
SunPower Corp. *		22,272			716,936
					2,768,426
Software & Services 5.3%
Demandware, Inc. *		9,489			584,522
FireEye, Inc. *		36,187			1,494,523
IGATE Corp. *		5,874			279,368
LinkedIn Corp., Class A *		3,200			806,816
Qlik Technologies, Inc. *		9,380			326,330
Splunk, Inc. *		23,170			1,537,214

52 See financial notes

 Schwab Hedged Equity Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Tableau Software, Inc., Class A *		6,632		648,875
The Ultimate Software Group, Inc. *		7,414		1,232,355
Twitter, Inc. *		25,031		975,208
WEX, Inc. *		10,109		1,139,385
Workday, Inc., Class A *		18,283		1,667,592
				10,692,188
Technology Hardware & Equipment 1.8%
Finisar Corp. *		107,404		2,183,523
Palo Alto Networks, Inc. *		3,753		554,393
Stratasys Ltd. *		10,431		390,641
Ubiquiti Networks, Inc.		20,699		591,371
				3,719,928
Transportation 0.6%
XPO Logistics, Inc. *		24,777		1,201,685
Utilities 1.1%
Dominion Resources, Inc.		20,411		1,463,060
MDU Resources Group, Inc.		23,310		519,580
SCANA Corp.		3,216		170,384
				2,153,024
Total Short Sales
(Proceeds $79,405,362)				81,030,731
End of Short Sale Positions.

* Non-income producing security

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

Assets Valuation Input

	Quoted Prices in					Significant
	Active Markets for			Other Significant		Unobservable
	Identical Assets			Observable Inputs		Inputs
Description	(Level 1)			(Level 2)		(Level 3)		Total
Common Stock1		$198,736,357			$—		$—		$198,736,357
Other Investment Company1		2,488,738			—		—		2,488,738
Total		$201,225,095			$—		$—		$201,225,095
Liabilities Valuation Input
Other Financial Instruments
Short Sales1		($81,030,731	)		$—		$—		($81,030,731	)

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 53

 Schwab Hedged Equity Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments, at value (cost $177,653,786)		$201,225,095
Deposit with broker for short sales		82,041,843
Receivables:
Investments sold		1,865,420
Fund shares sold		286,235
Dividends		60,380
Prepaid expenses	+	2,691
Total assets		285,481,664
Liabilities
Securities sold short, at value (proceeds $79,405,362)		81,030,731
Payables:
Investments bought		3,062,842
Investment adviser and administrator fees		40,773
Shareholder service fees		11,425
Fund shares redeemed		145,767
Dividends on short sales		5,535
Accrued expenses	+	31,643
Total liabilities		84,328,716
Net Assets
Total assets		285,481,664
Total liabilities	−	84,328,716
Net assets		$201,152,948
Net Assets by Source
Capital received from investors		170,537,665
Net investment loss		(2,414,753	)
Net realized capital gains		11,084,096
Net unrealized capital appreciation		21,945,940
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$201,152,948		11,762,308			$17.10

54 See financial notes

 Schwab Hedged Equity Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends		$1,919,940
Interest	+	8
Total investment income		1,919,948
Expenses
Investment adviser and administrator fees		1,068,963
Shareholder service fees		229,812
Dividends on short sales		355,308
Stock loan fees on short sales		156,584
Transfer agent fees		21,002
Professional fees		20,222
Portfolio accounting fees		13,349
Registration fees		10,849
Custodian fees		6,230
Shareholder reports		6,174
Independent trustees’ fees		3,586
Interest expense		542
Other expenses	+	4,812
Total expenses		1,897,433
Expense reduction by CSIM and its affiliates	−	30,979
Net expenses	−	1,866,454
Net investment income		53,494
Realized and Unrealized Gains (Losses)
Net realized gains on investments		13,931,697
Net realized gains on futures contracts		89,039
Net realized losses on short sales	+	(2,462,882	)
Net realized gains		11,557,854
Net change in unrealized appreciation (depreciation) on investments		(6,473,131	)
Net change in unrealized appreciation (depreciation) on short sales	+	385,080
Net change in unrealized appreciation (depreciation)	+	(6,088,051	)
Net realized and unrealized gains		5,469,803
Increase in net assets resulting from operations		$5,523,297

See financial notes 55

 Schwab Hedged Equity Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income (loss)		$53,494			($866,306	)
Net realized gains		11,557,854			25,464,367
Net change in unrealized appreciation (depreciation)	+	(6,088,051	)		(4,709,147	)
Increase in net assets from operations		5,523,297			19,888,914
Distributions to Shareholders
Distributions from net realized gains		($25,864,727	)		($15,225,593	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			2,000,371		$34,979,548			2,013,414		$36,941,019
Shares reinvested			1,327,636		22,755,673			781,617		13,490,717
Shares redeemed	+		(2,086,317	)	(36,303,966	)		(2,622,388	)	(47,702,546	)
Net transactions in fund shares			1,241,690		$21,431,255			172,643		$2,729,190
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			10,520,618		$200,063,123			10,347,975		$192,670,612
Total increase	+		1,241,690		1,089,825			172,643		7,392,511
End of period			11,762,308		$201,152,948			10,520,618		$200,063,123
Net investment loss					($2,414,753	)				($2,468,247	)

56 See financial notes

Schwab Financial Services Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		15.82			13.76			10.66			9.17			9.74			8.77
Income (loss) from investment operations:
Net investment income (loss)		0.13	1		0.11			0.11			0.08			0.05			0.04
Net realized and unrealized gains (losses)		0.28			2.07			3.08			1.46			(0.58	)		0.99
Total from investment operations		0.41			2.18			3.19			1.54			(0.53	)		1.03
Less distributions:
Distributions from net investment income		(0.13	)		(0.12	)		(0.09	)		(0.05	)		(0.04	)		(0.06	)
Net asset value at end of period		16.10			15.82			13.76			10.66			9.17			9.74
Total return (%)		2.57	2		15.92			30.20			16.92			(5.51	)		11.79
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		0.89	3		0.90			0.94			0.94			0.93	4		0.95	5
Gross operating expenses		0.93	3		0.95			1.03			1.10			1.06			1.04
Net investment income (loss)		1.69	3		0.76			0.91			0.78			0.45			0.37
Portfolio turnover rate		27	2		75			74			84			77			54
Net assets, end of period ($ x 1,000,000)		78			78			66			47			40			52

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

⁴ The ratio of net operating expenses would have been 0.94%, if payment for state filing fees had not been included.

⁵ The ratio of net operating expenses would have been 0.94%, if certain non-routine expenses had not been incurred.

See financial notes 57

 Schwab Financial Services Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.0%	Common Stock		64,135,695		77,436,570
	0	.9%	Short-Term Investment		711,018		711,018
	99	.9%	Total Investments		64,846,713		78,147,588
	0	.1%	Other Assets and Liabilities, Net				67,178
	100	.0%	Net Assets				78,214,766

	Number		Value
Security	of Shares		($)
Common Stock 99.0% of net assets
Banks 34.0%
Banco Latinoamericano de Exportaciones, S.A., Class E		6,731		213,844
Bank of America Corp.		235,905		3,757,967
BNC Bancorp		4,319		78,822
Citigroup, Inc.		70,705		3,769,991
Federal Agricultural Mortgage Corp., Class C		6,910		217,250
Fifth Third Bancorp		40,196		803,920
First Bancorp (North Carolina)		10,600		172,038
First Defiance Financial Corp.		3,308		115,780
First Horizon National Corp.		106,330		1,515,202
Huntington Bancshares, Inc.		69,000		749,340
JPMorgan Chase & Co.		66,860		4,229,564
KeyCorp		29,818		430,870
MidSouth Bancorp, Inc.		9,940		128,922
OFG Bancorp		80,010		1,127,341
Radian Group, Inc.		32,392		578,521
Regions Financial Corp.		82,500		810,975
SunTrust Banks, Inc.		23,954		994,091
The PNC Financial Services Group, Inc.		20,092		1,843,039
Wells Fargo & Co.		80,399		4,429,985
WSFS Financial Corp.		8,467		602,596
				26,570,058
Diversified Financials 25.7%
Affiliated Managers Group, Inc. *		7,899		1,786,201
Ameriprise Financial, Inc.		2,375		297,540
Berkshire Hathaway, Inc., Class B *		30,398		4,292,502
Calamos Asset Management, Inc., Class A		33,022		408,482
Capital One Financial Corp.		17,678		1,429,266
Cash America International, Inc.		2,233		57,879
Discover Financial Services		28,198		1,634,638
Franklin Resources, Inc.		6,945		358,084
Interactive Brokers Group, Inc., Class A		12,338		418,875
Janus Capital Group, Inc.		18,027		322,683
Lazard Ltd., Class A		26,192		1,388,962
Manning & Napier, Inc.		58,165		618,294
McGraw Hill Financial, Inc.		7,877		821,571
Morgan Stanley		64,440		2,404,256
Nelnet, Inc., Class A		14,868		665,640
SEI Investments Co.		5,250		239,715
The Goldman Sachs Group, Inc.		8,401		1,650,125
The NASDAQ OMX Group, Inc.		1,507		73,286
Voya Financial, Inc.		30,021		1,271,089
				20,139,088
Insurance 16.9%
American Equity Investment Life Holding Co.		38,081		1,026,283
American International Group, Inc.		7,943		447,111
AmTrust Financial Services, Inc.		3,806		226,343
Aspen Insurance Holdings Ltd.		12,453		581,929
Assured Guaranty Ltd.		55,367		1,438,988
CNA Financial Corp.		10,010		403,403
Heritage Insurance Holdings, Inc. *		3,721		74,606
Maiden Holdings Ltd.		77,675		1,128,618
MetLife, Inc.		52,910		2,713,754
Reinsurance Group of America, Inc.		21,508		1,970,563
Symetra Financial Corp.		63,952		1,518,860
The Allstate Corp.		10,628		740,347
The Hanover Insurance Group, Inc.		6,213		426,025
W. R. Berkley Corp.		10,631		520,813
				13,217,643
Real Estate 22.4%
AvalonBay Communities, Inc.		4,130		678,724
Brixmor Property Group, Inc.		24,729		579,895
CBRE Group, Inc., Class A *		26,778		1,026,669
Chambers Street Properties		80,090		600,675
CyrusOne, Inc.		3,742		121,540
Duke Realty Corp.		63,418		1,256,311
DuPont Fabros Technology, Inc.		15,248		474,975
Equity LifeStyle Properties, Inc.		31,114		1,643,441
Equity Residential		9,296		686,603
First Industrial Realty Trust, Inc.		16,203		319,685
General Growth Properties, Inc.		38,359		1,051,037
Highwoods Properties, Inc.		4,769		205,258
Host Hotels & Resorts, Inc.		13,630		274,508
Kilroy Realty Corp.		3,460		245,625
Regency Centers Corp.		6,093		382,519
Retail Properties of America, Inc., Class A		5,901		89,164
RLJ Lodging Trust		36,588		1,085,566
Saul Centers, Inc.		5,907		297,240
Simon Property Group, Inc.		15,901		2,885,872
SL Green Realty Corp.		15,129		1,851,184
Summit Hotel Properties, Inc.		106,206		1,398,733

58 See financial notes

 Schwab Financial Services Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Vornado Realty Trust		3,426		354,557
				17,509,781
Total Common Stock
(Cost $64,135,695)				77,436,570
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investment 0.9% of net assets
Time Deposit 0.9%
JPMorgan Chase Bank
0.03%, 05/01/15		711,018		711,018
Total Short-Term Investment
(Cost $711,018)				711,018
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $64,856,744 and the unrealized appreciation and depreciation were $14,281,797 and ($990,953), respectively, with a net unrealized appreciation of $13,290,844.

* Non-income producing security.

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Depreciation
	Contracts		($)		($)
Futures Contracts
S&P 500 Index, e-mini, Long, expires 06/19/15		5		519,725		(4,410	)

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

Assets Valuation Input

	Quoted Prices in					Significant
	Active Markets for			Other Significant		Unobservable
	Identical Assets			Observable Inputs		Inputs
Description	(Level 1)			(Level 2)		(Level 3)		Total
Common Stock1		$77,436,570			$—		$—		$77,436,570
Short-Term Investment1		—			711,018		—		711,018
Total		$77,436,570			$711,018		$—		$78,147,588
Liabilities Valuation Input
Other Financial Instruments
Futures Contracts2		($4,410	)		$—		$—		($4,410	)

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 59

 Schwab Financial Services Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments, at value (cost $64,846,713)		$78,147,588
Deposit with broker for futures contracts		55,200
Receivables:
Fund shares sold		49,185
Dividends		45,973
Receivable from investment adviser		133
Income from securities on loan		84
Prepaid expenses	+	552
Total assets		78,298,715
Liabilities
Payables:
Investment adviser and administrator fees		8,272
Shareholder service fees		5,137
Fund shares redeemed		50,787
Variation margin on futures contracts		5,025
Accrued expenses	+	14,728
Total liabilities		83,949
Net Assets
Total assets		78,298,715
Total liabilities	−	83,949
Net assets		$78,214,766
Net Assets by Source
Capital received from investors		84,411,279
Net investment income not yet distributed		344,456
Net realized capital losses		(19,837,434	)
Net unrealized capital appreciation		13,296,465
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$78,214,766		4,858,003			$16.10

60 See financial notes

 Schwab Financial Services Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends (net of foreign withholding taxes of $1,841)		$993,277
Interest		128
Securities on loan	+	36,373
Total investment income		1,029,778
Expenses
Investment adviser and administrator fees		215,637
Shareholder service fees		97,218
Transfer agent fees		14,838
Professional fees		14,342
Registration fees		10,878
Shareholder reports		6,355
Portfolio accounting fees		4,271
Independent trustees’ fees		3,309
Custodian fees		3,002
Interest expense		363
Other expenses	+	1,461
Total expenses		371,674
Expense reduction by CSIM and its affiliates	−	14,838
Net expenses	−	356,836
Net investment income		672,942
Realized and Unrealized Gains (Losses)
Net realized gains on investments		3,279,576
Net realized gains on futures contracts	+	12,294
Net realized gains		3,291,870
Net change in unrealized appreciation (depreciation) on investments		(1,870,714	)
Net change in unrealized appreciation (depreciation) on futures contracts	+	(4,410	)
Net change in unrealized appreciation (depreciation)	+	(1,875,124	)
Net realized and unrealized gains		1,416,746
Increase in net assets resulting from operations		$2,089,688

See financial notes 61

 Schwab Financial Services Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$672,942			$547,971
Net realized gains		3,291,870			8,324,709
Net change in unrealized appreciation (depreciation)	+	(1,875,124	)		1,496,790
Increase in net assets from operations		2,089,688			10,369,470
Distributions to Shareholders
Distributions from net investment income		($634,213	)		($544,804	)

Transactions in Fund Shares

		11/1/14-4/30/15						11/1/13-10/31/14
			SHARES			VALUE			SHARES		VALUE
Shares sold			666,973			$10,727,752			1,726,999		$25,585,699
Shares reinvested			31,821			515,508			33,720		471,741
Shares redeemed	+		(760,430	)		(12,302,277	)		(1,631,931	)	(23,993,680	)
Net transactions in fund shares			(61,636	)		($1,059,017	)		128,788		$2,063,760
Shares Outstanding and Net Assets
		11/1/14-4/30/15						11/1/13-10/31/14
			SHARES			NET ASSETS			SHARES		NET ASSETS
Beginning of period			4,919,639			$77,818,308			4,790,851		$65,929,882
Total increase or decrease	+		(61,636	)		396,458			128,788		11,888,426
End of period			4,858,003			$78,214,766			4,919,639		$77,818,308
Net investment income not yet distributed					��	$344,456					$305,727

62 See financial notes

Schwab Health Care Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		28.19			24.57			20.59			17.29			15.48			13.41
Income (loss) from investment operations:
Net investment income (loss)		0.10	1		0.23			0.22			0.27			0.15			0.19
Net realized and unrealized gains (losses)		2.19			5.84			6.26			3.18			1.85			2.01
Total from investment operations		2.29			6.07			6.48			3.45			2.00			2.20
Less distributions:
Distributions from net investment income		(0.21	)		(0.19	)		(0.33	)		(0.15	)		(0.19	)		(0.13	)
Distributions from net realized gains		(3.22	)		(2.26	)		(2.17	)		—			—			—
Total distributions		(3.43	)		(2.45	)		(2.50	)		(0.15	)		(0.19	)		(0.13	)
Net asset value at end of period		27.05			28.19			24.57			20.59			17.29			15.48
Total return (%)		8.75	2		27.06			35.46			20.10			13.00			16.49
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		0.79	3		0.80			0.82			0.82			0.81	4		0.82
Gross operating expenses		0.80	3		0.81			0.83			0.85			0.85			0.86
Net investment income (loss)		0.76	3		0.93			1.06			1.44			0.85			1.14
Portfolio turnover rate		44	2		57			54			60			24			37
Net assets, end of period ($ x 1,000,000)		1,157			1,064			816			511			414			410

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

⁴ The ratio of net operating expenses would have been 0.82%, if payment for state filing fees and a voluntary reduction of Investment Adviser fees had not been included.

See financial notes 63

 Schwab Health Care Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.3%	Common Stock		861,327,561		1,148,128,009
	0	.2%	Other Investment Company		1,953,365		1,953,365
	0	.8%	Short-Term Investment		9,812,790		9,812,790
	100	.3%	Total Investments		873,093,716		1,159,894,164
	(0	.3%)	Other Assets and Liabilities, Net				(3,093,298	)
	100	.0%	Net Assets				1,156,800,866

	Number		Value
Security	of Shares		($)
Common Stock 99.3% of net assets
Australia 2.3%
Health Care Equipment & Services 2.3%
Cochlear Ltd.		290,626		19,136,909
Ramsay Health Care Ltd.		144,074		7,102,305
				26,239,214
Canada 1.3%
Pharmaceuticals, Biotechnology & Life Sciences 1.3%
Valeant Pharmaceuticals International, Inc. *		69,257		15,023,921
Denmark 3.7%
Health Care Equipment & Services 0.2%
Coloplast A/S, Class B		28,063		2,290,617
Pharmaceuticals, Biotechnology & Life Sciences 3.5%
Novo Nordisk A/S, Class B		724,719		40,686,212
				42,976,829
Finland 0.9%
Pharmaceuticals, Biotechnology & Life Sciences 0.9%
Orion Oyj, Class B (a)		306,185		10,011,957
France 0.2%
Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Ipsen S.A.		34,943		2,006,706
Hong Kong 1.6%
Pharmaceuticals, Biotechnology & Life Sciences 1.6%
Sino Biopharmaceutical Ltd.		16,152,000		18,440,370
Ireland 3.9%
Health Care Equipment & Services 0.6%
Medtronic plc		93,200		6,938,740
Pharmaceuticals, Biotechnology & Life Sciences 3.3%
Actavis plc *		76,461		21,627,759
Horizon Pharma plc *		599,450		16,856,534
				38,484,293
				45,423,033
Israel 1.5%
Pharmaceuticals, Biotechnology & Life Sciences 1.5%
Teva Pharmaceutical Industries Ltd.		277,941		16,888,895
Italy 0.3%
Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Recordati S.p.A.		182,460		3,635,670
Japan 4.4%
Pharmaceuticals, Biotechnology & Life Sciences 4.4%
Astellas Pharma, Inc.		1,764,000		27,466,707
Kaken Pharmaceutical Co., Ltd.		134,000		4,788,600
Kissei Pharmaceutical Co., Ltd.		59,200		1,757,115
KYORIN Holdings, Inc.		218,500		5,025,888
Shionogi & Co., Ltd.		351,900		11,600,268
				50,638,578
Netherlands 0.5%
Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Mylan N.V. *		75,000		5,419,500
New Zealand 0.1%
Health Care Equipment & Services 0.1%
Fisher & Paykel Healthcare Corp., Ltd.		365,668		1,810,940
Republic of Korea 0.6%
Health Care Equipment & Services 0.1%
Osstem Implant Co., Ltd. *		26,321		1,150,270
Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Bukwang Pharmaceutical Co., Ltd.		53,769		1,235,201
Cell Biotech Co., Ltd.		5,454		293,188
Medy-Tox, Inc.		11,958		4,133,913
				5,662,302
				6,812,572

64 See financial notes

 Schwab Health Care Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
South Africa 0.5%
Health Care Equipment & Services 0.5%
Netcare Ltd.		1,721,138		6,020,914
Switzerland 4.5%
Pharmaceuticals, Biotechnology & Life Sciences 4.5%
Lonza Group AG - Reg’d *		79,524		11,243,900
Novartis AG - Reg’d		170,553		17,408,706
Roche Holding AG		81,441		23,304,757
				51,957,363
United Kingdom 3.2%
Pharmaceuticals, Biotechnology & Life Sciences 3.2%
AstraZeneca plc		23,888		1,639,352
Shire plc		433,512		35,228,719
				36,868,071
United States 69.8%
Health Care Equipment & Services 21.0%
Abbott Laboratories		599,500		27,828,790
Alere, Inc. *		168,729		8,011,253
Alliance HealthCare Services, Inc. *		17,700		376,479
AngioDynamics, Inc. *		36,300		605,847
Anika Therapeutics, Inc. *		81,100		2,767,132
Becton, Dickinson & Co.		15,200		2,141,224
Boston Scientific Corp. *		729,600		13,001,472
C.R. Bard, Inc.		138,800		23,121,304
Cardinal Health, Inc.		328,000		27,663,520
Centene Corp. *		369,400		22,899,106
Community Health Systems, Inc. *		83,600		4,487,648
CONMED Corp.		9,500		477,185
Edwards Lifesciences Corp. *		39,400		4,990,010
Greatbatch, Inc. *		89,528		4,827,350
HCA Holdings, Inc. *		47,800		3,537,678
Hill-Rom Holdings, Inc.		121,900		6,087,686
Hologic, Inc. *		312,300		10,537,002
LifePoint Hospitals, Inc. *		91,400		6,844,032
McKesson Corp.		111,300		24,864,420
Meridian Bioscience, Inc.		59,600		1,056,112
Molina Healthcare, Inc. *		440,500		26,090,815
NuVasive, Inc. *		87,900		3,931,767
Quality Systems, Inc.		186,200		2,903,789
RadNet, Inc. *		79,700		667,886
St. Jude Medical, Inc.		84,300		5,905,215
The Providence Service Corp. *		17,500		744,100
UnitedHealth Group, Inc.		58,200		6,483,480
				242,852,302
Pharmaceuticals, Biotechnology & Life Sciences 48.8%
AbbVie, Inc.		533,700		34,509,042
Acorda Therapeutics, Inc. *		224,900		6,762,743
Affymetrix, Inc. *		637,848		7,737,096
Agilent Technologies, Inc.		26,700		1,104,579
Amgen, Inc.		427,300		67,474,943
Bio-Rad Laboratories, Inc., Class A *		14,700		1,976,415
Biogen, Inc. *		101,500		37,953,895
Bristol-Myers Squibb Co.		97,355		6,204,434
Catalent, Inc. *		31,300		900,501
Celgene Corp. *		463,400		50,075,004
Charles River Laboratories International, Inc. *		399,300		27,615,588
Emergent Biosolutions, Inc. *		155,200		4,607,888
Gilead Sciences, Inc. *		731,808		73,554,022
Illumina, Inc. *		71,600		13,192,300
Infinity Pharmaceuticals, Inc. *		398,550		5,049,628
Johnson & Johnson		687,900		68,239,680
Ligand Pharmaceuticals, Inc. *		91,829		7,129,603
Luminex Corp. *		76,700		1,190,384
Medivation, Inc. *		14,600		1,762,804
Merck & Co., Inc.		803,900		47,880,284
PAREXEL International Corp. *		262,521		16,689,773
PDL BioPharma, Inc.		538,500		3,591,795
Pernix Therapeutics Holdings, Inc. *		415,112		2,648,415
Pfizer, Inc.		1,959,100		66,472,263
Phibro Animal Health Corp., Class A		48,600		1,543,536
Prestige Brands Holdings, Inc. *		107,868		4,233,819
Sagent Pharmaceuticals, Inc. *		35,300		822,843
SciClone Pharmaceuticals, Inc. *		101,400		828,438
Spectrum Pharmaceuticals, Inc. *(a)		80,800		456,520
The Medicines Co. *		80,700		2,066,727
Zoetis, Inc.		18,600		826,212
				565,101,174
				807,953,476
Total Common Stock
(Cost $861,327,561)				1,148,128,009
Other Investment Company 0.2% of net assets
United States 0.2%
Securities Lending Collateral 0.2%
Wells Fargo Advantage Government Money Market Fund, Institutional Class 0.01% (b)		1,953,365		1,953,365
Total Other Investment Company
(Cost $1,953,365)				1,953,365

See financial notes 65

 Schwab Health Care Fund

Portfolio Holdings (Unaudited) continued

Security	Face Amount		Value
Rate, Maturity Date	Local Currency		($)
Short-Term Investment 0.8% of net assets
Time Deposit 0.8%
Australia & New Zealand Banking Group Ltd.
US Dollar
0.03%, 05/01/15		9,812,790		9,812,790
Total Short-Term Investment
(Cost $9,812,790)				9,812,790
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $873,128,149 and the unrealized appreciation and depreciation were $296,969,791 and ($10,203,776), respectively, with a net unrealized appreciation of $286,766,015.

At 04/30/15, the values of certain foreign securities held by the fund aggregating $274,308,079 were adjusted from their closing market values in accordance with international fair valuation procedures approved by the fund’s Board of Trustees. (See financial note 2(a) for additional information)

*	Non-income producing security.
(a)	All or a portion of this security is on loan. Securities on loan were valued at $1,903,974.
(b)	The rate shown is the 7-day yield.

Reg’d — Registered

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Depreciation
	Contracts		($)		($)
Futures Contracts
S&P 500 Index, e-mini, Long, expires 06/19/15		26		2,702,570		(27,805	)

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

Assets Valuation Input

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Common Stock1		$873,819,930		$—		$—		$873,819,930
Australia1		—		26,239,214		—		26,239,214
Denmark1		—		42,976,829		—		42,976,829
Finland1		—		10,011,957		—		10,011,957
France1		—		2,006,706		—		2,006,706
Hong Kong1		—		18,440,370		—		18,440,370
Israel1		—		16,888,895		—		16,888,895
Italy1		—		3,635,670		—		3,635,670
Japan1		—		50,638,578		—		50,638,578
New Zealand1		—		1,810,940		—		1,810,940
Republic of Korea1		—		6,812,572		—		6,812,572
South Africa1		—		6,020,914		—		6,020,914
Switzerland1		—		51,957,363		—		51,957,363
United Kingdom1		—		36,868,071		—		36,868,071
Other Investment Company1		1,953,365		—		—		1,953,365
Short-Term Investment1		—		9,812,790		—		9,812,790
Total		$875,773,295		$284,120,869		$—		$1,159,894,164

66 See financial notes

 Schwab Health Care Fund

Portfolio Holdings (Unaudited) continued

Liabilities Valuation Input
	Quoted Prices in					Significant
	Active Markets for			Other Significant		Unobservable
	Identical Assets			Observable Inputs		Inputs
Description	(Level 1)			(Level 2)		(Level 3)		Total
Other Financial Instruments
Futures Contracts2		($27,805	)		$—		$—		($27,805	)

1	As categorized in Portfolio Holdings.
2	Futures contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 67

 Schwab Health Care Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments, at value (cost $871,140,351) including securities on loan of $1,903,974		$1,157,940,799
Collateral invested for securities on loan, at value (cost $1,953,365)	+	1,953,365
Total investments, at value (cost $873,093,716)		1,159,894,164
Deposit with broker for futures contracts		671,600
Receivables:
Investments sold		21,583,485
Fund shares sold		1,365,523
Foreign tax reclaims		940,510
Dividends		855,043
Income from securities on loan		2,315
Prepaid expenses	+	5,279
Total assets		1,185,317,919
Liabilities
Collateral held for securities on loan		1,953,365
Payables:
Investments bought		24,981,643
Investment adviser and administrator fees		120,226
Shareholder service fees		61,451
Fund shares redeemed		1,286,058
Variation margin on futures contracts		56,188
Due to custodian		20
Accrued expenses	+	58,102
Total liabilities		28,517,053
Net Assets
Total assets		1,185,317,919
Total liabilities	−	28,517,053
Net assets		$1,156,800,866
Net Assets by Source
Capital received from investors		781,640,268
Net investment income not yet distributed		3,827,978
Net realized capital gains		84,561,189
Net unrealized capital appreciation		286,771,431
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$1,156,800,866		42,759,507			$27.05

68 See financial notes

 Schwab Health Care Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends (net of foreign withholding taxes of $497,185)		$8,574,164
Interest		1,576
Securities on loan	+	87,170
Total investment income		8,662,910
Expenses
Investment adviser and administrator fees		2,915,756
Shareholder service fees		1,315,843
Custodian fees		49,084
Transfer agent fees		38,344
Portfolio accounting fees		33,190
Shareholder reports		30,426
Registration fees		23,343
Professional fees		17,401
Independent trustees’ fees		5,510
Interest expense		3,723
Other expenses	+	16,894
Total expenses		4,449,514
Expense reduction by CSIM and its affiliates	−	38,344
Net expenses	−	4,411,170
Net investment income		4,251,740
Realized and Unrealized Gains (Losses)
Net realized gains on investments		84,882,489
Net realized gains on futures contracts		429,771
Net realized losses on foreign currency transactions	+	(6,059	)
Net realized gains		85,306,201
Net change in unrealized appreciation (depreciation) on investments		4,331,923
Net change in unrealized appreciation (depreciation) on futures contracts		(386,191	)
Net change in unrealized appreciation (depreciation) on foreign currency translations	+	63,215
Net change in unrealized appreciation (depreciation)	+	4,008,947
Net realized and unrealized gains		89,315,148
Increase in net assets resulting from operations		$93,566,888

See financial notes 69

 Schwab Health Care Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$4,251,740			$8,554,649
Net realized gains		85,306,201			122,400,978
Net change in unrealized appreciation (depreciation)	+	4,008,947			91,379,380
Increase in net assets from operations		93,566,888			222,335,007
Distributions to Shareholders
Distributions from net investment income		(8,134,921	)		(6,270,757	)
Distributions from net realized gains	+	(122,526,297	)		(76,135,752	)
Total distributions		($130,661,218	)		($82,406,509	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			4,585,790		$122,766,340			8,951,426		$224,018,159
Shares reinvested			4,588,745		118,160,176			3,264,515		74,267,727
Shares redeemed	+		(4,165,756	)	(111,154,597	)		(7,695,559	)	(190,483,862	)
Net transactions in fund shares			5,008,779		$129,771,919			4,520,382		$107,802,024
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			37,750,728		$1,064,123,277			33,230,346		$816,392,755
Total increase	+		5,008,779		92,677,589			4,520,382		247,730,522
End of period			42,759,507		$1,156,800,866			37,750,728		$1,064,123,277
Net investment income not yet distributed					$3,827,978					$7,711,159

70 See financial notes

Schwab International Core Equity Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		9.77			9.82			7.90			7.32			7.80			7.25
Income (loss) from investment operations:
Net investment income (loss)		0.12	1		0.29	1		0.20			0.16			0.17			0.16
Net realized and unrealized gains (losses)		0.53			(0.08	)		1.93			0.62			(0.46	)		0.57
Total from investment operations		0.65			0.21			2.13			0.78			(0.29	)		0.73
Less distributions:
Distributions from net investment income		(0.15	)		(0.26	)		(0.21	)		(0.20	)		(0.19	)		(0.18	)
Distributions from net realized gains		(0.18	)		—			—			—			—			—
Total distributions		(0.33	)		(0.26	)		(0.21	)		(0.20	)		(0.19	)		(0.18	)
Net asset value at end of period		10.09			9.77			9.82			7.90			7.32			7.80
Total return (%)		7.04	2		2.20			27.70			11.17			(3.89	)		10.09
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		0.86	3		0.86			0.86			0.86			0.80	4		0.87	5
Gross operating expenses		0.91	3		0.98			1.10			1.16			1.22			1.27
Net investment income (loss)		2.59	3		2.95			2.40			2.45			2.32			1.85
Portfolio turnover rate		47	2		90			75			112			86			91	6
Net assets, end of period ($ x 1,000,000)		605			423			147			78			60			53

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

⁴ The ratio of net operating expenses would have been 0.86%, if a voluntary reduction of Investment Adviser fees had not been included.

⁵ The ratio of net operating expenses would have been 0.86%, if certain non-routine expenses had not been incurred.

⁶ Portfolio turnover excludes the impact of investment activity resulting from a merger with another fund.

See financial notes 71

 Schwab International Core Equity Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	97	.9%	Common Stock		555,063,133		592,346,783
	0	.3%	Other Investment Company		1,477,256		1,477,256
	98	.2%	Total Investments		556,540,389		593,824,039
	1	.8%	Other Assets and Liabilities, Net				11,061,809
	100	.0%	Net Assets				604,885,848

	Number		Value
Security	of Shares		($)
Common Stock 97.9% of net assets
Australia 5.3%
Banks 0.5%
Commonwealth Bank of Australia		9,015		631,023
Westpac Banking Corp.		74,076		2,128,253
				2,759,276
Diversified Financials 1.1%
ASX Ltd.		21,443		712,262
Macquarie Group Ltd.		22,628		1,386,474
Platinum Asset Management Ltd.		808,660		4,812,564
				6,911,300
Energy 2.1%
Caltex Australia Ltd.		78,506		2,189,522
Woodside Petroleum Ltd.		389,258		10,734,645
				12,924,167
Food & Staples Retailing 0.1%
Metcash Ltd.		247,579		258,438
Food, Beverage & Tobacco 0.3%
Coca-Cola Amatil Ltd.		252,068		2,040,681
Health Care Equipment & Services 0.1%
Cochlear Ltd.		10,626		699,692
Materials 0.4%
Northern Star Resources Ltd.		618,385		1,099,738
Rio Tinto Ltd.		4,380		197,438
Sandfire Resources NL		256,812		993,628
				2,290,804
Retailing 0.2%
JB Hi-Fi Ltd.		87,490		1,351,460
Transportation 0.5%
Qantas Airways Ltd. *		1,172,321		3,133,542
				32,369,360
Austria 0.1%
Real Estate 0.1%
CA Immobilien Anlagen AG *		31,992		580,588
Belgium 2.9%
Food & Staples Retailing 0.4%
Delhaize Group S.A.		29,636		2,385,708
	��
Insurance 1.0%
Ageas		166,928		6,271,854
Transportation 1.5%
bpost S.A.		311,723		8,939,745
				17,597,307
Canada 1.1%
Automobiles & Components 0.5%
Magna International, Inc.		65,126		3,281,940
Materials 0.1%
Dominion Diamond Corp.		23,500		463,183
Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Valeant Pharmaceuticals International, Inc. *		14,005		3,036,990
				6,782,113
Denmark 2.8%
Banks 0.5%
Sydbank A/S		78,304		2,939,383
Consumer Durables & Apparel 0.9%
Pandora A/S		54,574		5,640,850
Pharmaceuticals, Biotechnology & Life Sciences 1.2%
Novo Nordisk A/S, Class B		131,455		7,379,972
Transportation 0.2%
AP Moeller - Maersk A/S, Series B		568		1,127,244
				17,087,449
Finland 0.1%
Real Estate 0.1%
Sponda Oyj		85,865		375,515
France 9.0%
Banks 1.8%
Credit Agricole S.A.		687,379		10,694,480
Capital Goods 0.3%
Safran S.A.		27,973		2,043,912
Consumer Durables & Apparel 1.2%
Christian Dior SE		38,420		7,511,145
Energy 1.5%
Total S.A.		161,270		8,732,763
Insurance 0.2%
CNP Assurances		65,138		1,170,755
Media 0.6%
Technicolor S.A. - Reg’d *		514,426		3,490,147

72 See financial notes

 Schwab International Core Equity Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Pharmaceuticals, Biotechnology & Life Sciences 2.1%
Ipsen S.A.		50,235		2,884,895
Sanofi		97,547		9,929,349
				12,814,244
Software & Services 0.8%
UBISOFT Entertainment *		261,808		4,827,675
Telecommunication Services 0.5%
Orange S.A.		181,947		2,996,906
				54,282,027
Germany 7.3%
Automobiles & Components 0.4%
Continental AG		10,020		2,348,233
Capital Goods 1.8%
Duerr AG		103,470		10,590,948
Wacker Neuson SE		14,978		384,447
				10,975,395
Consumer Durables & Apparel 0.6%
Hugo Boss AG		28,514		3,508,660
Food & Staples Retailing 0.1%
METRO AG		23,485		851,211
Insurance 2.5%
Allianz SE - Reg’d		88,679		15,094,463
Materials 0.0%
Aurubis AG		3,024		191,084
Media 1.7%
CTS Eventim AG & Co. KGaA		13,317		455,692
ProSiebenSat.1 Media AG - Reg’d		164,223		8,396,256
Stroeer Media SE		31,733		1,173,241
				10,025,189
Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Merck KGaA		8,478		913,972
				43,908,207
Greece 0.1%
Consumer Services 0.1%
OPAP S.A.		37,865		338,758
Hong Kong 5.2%
Capital Goods 0.1%
EVA Precision Industrial Holdings Ltd.		1,408,000		456,959
Consumer Durables & Apparel 0.2%
Pacific Textile Holdings Ltd.		684,000		949,589
Diversified Financials 0.2%
Sun Hung Kai & Co., Ltd.		1,351,065		1,405,176
Energy 0.2%
CNOOC Ltd.		806,000		1,374,401
Materials 1.1%
Huabao International Holdings Ltd.		5,887,554		6,613,151
Real Estate 3.1%
China Resources Land Ltd.		576,000		2,089,848
Hang Lung Properties Ltd.		1,359,000		4,594,186
Kerry Properties Ltd.		197,000		804,013
New World Development Co., Ltd.		8,388,000		11,125,517
				18,613,564
Utilities 0.3%
Guangdong Investment Ltd.		1,362,000		2,030,965
				31,443,805
Israel 1.2%
Diversified Financials 0.8%
Plus500 Ltd.		438,408		5,050,535
Pharmaceuticals, Biotechnology & Life Sciences 0.4%
Teva Pharmaceutical Industries Ltd.		36,605		2,224,278
				7,274,813
Italy 1.4%
Automobiles & Components 0.2%
Brembo S.p.A.		40,873		1,635,028
Banks 0.7%
Banca Popolare Di Milano Scarl *		4,180,167		4,307,357
Capital Goods 0.2%
Biesse S.p.A.		71,536		1,153,231
Consumer Durables & Apparel 0.1%
Luxottica Group S.p.A.		6,028		396,985
Diversified Financials 0.1%
Banca IFIS S.p.A.		21,257		436,141
Energy 0.1%
ERG S.p.A.		32,312		465,492
				8,394,234
Japan 20.2%
Automobiles & Components 1.5%
Fuji Heavy Industries Ltd.		218,390		7,302,959
Sumitomo Rubber Industries Ltd.		95,000		1,761,427
				9,064,386
Banks 3.4%
Fukuoka Financial Group, Inc.		383,000		2,200,428
Resona Holdings, Inc.		1,304,400		6,955,145
Sumitomo Mitsui Financial Group, Inc.		224,800		9,815,799
The Bank of Yokohama Ltd.		277,000		1,757,999
				20,729,371
Capital Goods 1.6%
Minebea Co., Ltd.		272,000		4,170,612
Mitsubishi Electric Corp.		167,000		2,180,970
Nippo Corp.		100,517		1,681,051
Takuma Co., Ltd.		172,800		1,327,558
				9,360,191
Commercial & Professional Supplies 0.3%
Meitec Corp.		30,400		978,968
Nissha Printing Co., Ltd.		41,300		799,725
				1,778,693
Consumer Durables & Apparel 1.5%
Haseko Corp.		889,000		8,778,242
Consumer Services 0.1%
Kura Corp.		15,200		586,207

See financial notes 73

 Schwab International Core Equity Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Health Care Equipment & Services 0.3%
Miraca Holdings, Inc.		40,000		2,012,378
Materials 0.7%
Asahi Holdings, Inc.		128,700		2,421,803
Taiheiyo Cement Corp.		661,000		2,082,976
				4,504,779
Media 0.3%
CyberAgent, Inc.		42,929		2,065,774
Pharmaceuticals, Biotechnology & Life Sciences 1.5%
Astellas Pharma, Inc.		535,100		8,331,879
Kaken Pharmaceutical Co., Ltd.		18,000		643,245
				8,975,124
Real Estate 0.6%
Premier Investment Corp.		666		3,711,585
Retailing 1.7%
Canon Marketing Japan, Inc.		245,356		4,608,938
T-Gaia Corp.		407,700		5,523,691
				10,132,629
Software & Services 1.1%
Fujitsu Ltd.		488,000		3,234,637
Mixi, Inc.		92,500		3,629,819
				6,864,456
Technology Hardware & Equipment 1.1%
Hoya Corp.		85,400		3,291,389
Murata Manufacturing Co., Ltd.		6,100		859,575
Oki Electric Industry Co., Ltd.		1,132,000		2,319,033
				6,469,997
Transportation 1.3%
Central Japan Railway Co.		5,545		990,372
Japan Airlines Co., Ltd.		189,000		6,301,672
West Japan Railway Co.		13,500		747,676
				8,039,720
Utilities 3.2%
Osaka Gas Co., Ltd.		1,054,000		4,473,350
Tohoku Electric Power Co., Inc.		402,800		5,067,124
Tokyo Gas Co., Ltd.		1,664,000		9,602,609
				19,143,083
				122,216,615
Netherlands 4.4%
Capital Goods 0.6%
Koninklijke Boskalis Westminster N.V.		70,735		3,675,433
Food & Staples Retailing 1.5%
Koninklijke Ahold N.V.		475,085		9,204,352
Food, Beverage & Tobacco 1.7%
Unilever N.V. CVA		231,651		10,104,755
Media 0.6%
Reed Elsevier N.V.		153,847		3,710,391
				26,694,931
New Zealand 0.2%
Transportation 0.2%
Air New Zealand Ltd.		452,846		930,614
Norway 1.2%
Banks 0.3%
SpareBank 1 SMN		165,669		1,479,881
Energy 0.8%
TGS Nopec Geophysical Co. A.S.A.		196,813		5,008,695
Food, Beverage & Tobacco 0.1%
Salmar A.S.A.		35,563		577,380
				7,065,956
Portugal 0.7%
Transportation 0.7%
CTT-Correios de Portugal S.A.		385,032		4,342,763
Republic of Korea 0.2%
Household & Personal Products 0.1%
Amorepacific Group (a)		406		617,332
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Medy-Tox, Inc.		2,000		691,406
				1,308,738
Singapore 2.2%
Banks 1.0%
DBS Group Holdings Ltd.		382,000		6,070,122
Retailing 0.2%
Jardine Cycle & Carriage Ltd.		29,000		883,664
Transportation 1.0%
ComfortDelGro Corp., Ltd.		2,182,000		5,054,920
Singapore Post Ltd.		878,000		1,265,919
				6,320,839
				13,274,625
South Africa 0.7%
Materials 0.7%
Mondi Ltd.		223,024		4,497,192
Spain 1.9%
Banks 0.9%
Banco Santander S.A.		491,658		3,717,214
Bankinter S.A.		121,039		915,391
Liberbank S.A. *		821,068		709,203
				5,341,808
Food, Beverage & Tobacco 0.1%
Viscofan S.A.		11,366		722,416
Media 0.7%
Mediaset Espana Comunicacion S.A. *		321,508		4,357,929
Software & Services 0.2%
Amadeus IT Holding S.A., A Shares		17,239		785,787
				11,207,940

74 See financial notes

 Schwab International Core Equity Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Sweden 1.9%
Banks 0.7%
Nordea Bank AB		321,455		4,084,132
Capital Goods 0.1%
Peab AB		48,451		408,630
Food & Staples Retailing 0.1%
Axfood AB		53,732		848,838
Real Estate 0.4%
Fastighets AB Balder, B Shares *		143,502		2,557,958
Software & Services 0.4%
Net Entertainment NE AB, B Shares *		68,323		2,583,190
Technology Hardware & Equipment 0.2%
Telefonaktiebolaget LM Ericsson, B Shares		117,577		1,285,913
				11,768,661
Switzerland 7.7%
Diversified Financials 0.1%
Cembra Money Bank AG *		9,461		629,421
Food, Beverage & Tobacco 2.1%
Nestle S.A. - Reg’d		160,636		12,462,817
Insurance 3.2%
Swiss Life Holding AG - Reg’d *		43,853		10,406,356
Zurich Insurance Group AG *		30,048		9,274,410
				19,680,766
Pharmaceuticals, Biotechnology & Life Sciences 2.3%
Novartis AG - Reg’d		39,866		4,069,207
Roche Holding AG		34,696		9,928,437
				13,997,644
				46,770,648
Taiwan 0.8%
Semiconductors & Semiconductor Equipment 0.1%
Inotera Memories, Inc. *		301,000		345,666
Nanya Technology Corp. *		121,000		268,738
				614,404
Technology Hardware & Equipment 0.7%
Foxconn Technology Co., Ltd.		446,000		1,271,117
Hon Hai Precision Industry Co., Ltd.		363,000		1,087,710
Largan Precision Co., Ltd.		8,000		801,648
Pegatron Corp.		447,700		1,326,289
				4,486,764
				5,101,168
United Kingdom 19.3%
Banks 0.1%
Bank of Georgia Holdings plc		20,436		561,237
Capital Goods 1.4%
BAE Systems plc		1,067,138		8,267,336
Commercial & Professional Supplies 0.2%
WS Atkins plc		64,220		1,317,674
Consumer Durables & Apparel 0.3%
Persimmon plc		79,216		2,056,791
Consumer Services 1.7%
Betfair Group plc		59,755		2,129,316
Carnival plc		33,396		1,519,423
Unibet Group plc SDR		110,346		6,468,470
				10,117,209
Diversified Financials 0.3%
Investec plc		166,795		1,592,708
Energy 2.9%
BP plc		1,350,275		9,738,716
Royal Dutch Shell plc, B Shares		236,177		7,561,393
				17,300,109
Food & Staples Retailing 0.2%
Greggs plc		54,481		990,119
Food, Beverage & Tobacco 3.3%
British American Tobacco plc		161,839		8,892,014
Unilever plc		252,369		11,062,455
				19,954,469
Household & Personal Products 0.5%
Reckitt Benckiser Group plc		36,229		3,224,539
Materials 3.1%
BHP Billiton plc		428,266		10,293,999
Evraz plc		791,480		2,298,545
Polymetal International plc		101,237		822,283
Rio Tinto plc		125,242		5,604,711
				19,019,538
Pharmaceuticals, Biotechnology & Life Sciences 0.8%
Shire plc		61,754		5,018,349
Real Estate 0.3%
St. Modwen Properties plc		118,147		788,897
The Unite Group plc		137,722		1,266,305
				2,055,202
Retailing 1.1%
Howden Joinery Group plc		240,866		1,714,680
Next plc		33,743		3,793,739
WH Smith plc		63,690		1,397,364
				6,905,783
Semiconductors & Semiconductor Equipment 0.7%
ARM Holdings plc		96,669		1,642,539
Dialog Semiconductor plc *		52,908		2,385,562
				4,028,101
Software & Services 0.4%
Moneysupermarket.com Group plc		595,999		2,553,882
Technology Hardware & Equipment 0.2%
Pace plc		212,907		1,349,867
Telecommunication Services 1.7%
BT Group plc		1,433,577		9,998,603
Transportation 0.1%
Go-Ahead Group plc		11,156		421,240
				116,732,756
Total Common Stock
(Cost $555,063,133)				592,346,783

See financial notes 75

 Schwab International Core Equity Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Other Investment Company 0.3% of net assets
Money Market Fund 0.3%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b)		1,477,256		1,477,256
Total Other Investment Company
(Cost $1,477,256)				1,477,256
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $556,867,337 and the unrealized appreciation and depreciation were $46,449,810 and ($9,493,108), respectively, with a net unrealized appreciation of $36,956,702.

At 04/30/15, the values of certain foreign securities held by the fund aggregating $568,642,783 were adjusted from their closing market values in accordance with international fair valuation procedures approved by the fund’s Board of Trustees. (See financial note 2(a) for additional information).

*	Non-income producing security.
(a)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(b)	The rate shown is the 7-day yield.

CVA —	Dutch Certificate
Reg’d —	Registered
SDR —	Swedish Depositary Receipt

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Appreciation
	Contracts		($)		($)
Futures Contracts
MSCI EAFE, e-mini, Long, expires 06/19/15		70		6,629,700		2,848

				Amount of				Amount of
		Currency		Currency		Currency		Currency		Unrealized
Expiration		to be		to be		to be		to be		Appreciation
Date	Counterparty	Received		Received		Delivered		Delivered		($)
Forward Foreign Currency Exchange Contracts
05/08/2015	State Street Bank & Trust Co.		JPY		235,262,582		USD		1,970,386		1,564
05/07/2015	State Street Bank & Trust Co.		USD		194,521		JPY		23,225,750		758
Net Unrealized Appreciation on Forward Foreign Currency Exchange Contracts											2,322

76 See financial notes

 Schwab International Core Equity Fund

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Common Stock1		$—		$254,285,502		$—		$254,285,502
Canada1		6,782,113		—		—		6,782,113
Germany1		—		33,883,018		—		33,883,018
Media		455,692		9,569,497		—		10,025,189
Hong Kong1		—		30,494,216		—		30,494,216
Consumer Durables & Apparel		949,589		—		—		949,589
Israel1		—		2,224,278		—		2,224,278
Diversified Financials		5,050,535		—		—		5,050,535
Italy1		—		7,928,742		—		7,928,742
Energy		465,492		—		—		465,492
Japan1		—		115,746,618		—		115,746,618
Technology Hardware & Equipment		859,575		5,610,422		—		6,469,997
Republic of Korea1		—		691,406		—		691,406
Household & Personal Products		—		—		617,332		617,332
United Kingdom1		—		104,560,345		—		104,560,345
Consumer Services		6,468,470		3,648,739		—		10,117,209
Real Estate		2,055,202		—		—		2,055,202
Other Investment Company1		1,477,256		—		—		1,477,256
Total		$24,563,924		$568,642,783		$617,332		$593,824,039
Other Financial Instruments
Futures Contracts2		$2,848		$—		$—		$2,848
Forward Foreign Currency Exchange Contracts2		—		2,322		—		2,322

1	As categorized in Portfolio Holdings.
2	Futures contracts and forward foreign currency exchange contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Balance				Change in										Balance
	as of		Realized		Unrealized						Gross		Gross		as of
	October 31,		Gains		Appreciation		Gross		Gross		Transfers		Transfers		April 30,
Investments in Securities	2014		(Losses)		(Depreciation)		Purchases		Sales		in		out		2015
Common Stock
Republic of Korea		$—		$—		$183,989		$433,343		$—		$—		$—		$617,332
Total		$—		$—		$183,989		$433,343		$—		$—		$—		$617,332

All net realized and change in unrealized gains (losses) in the table above are reflected on the accompanying Statement of Operations. The change in net unrealized appreciation (depreciation) for Level 3 investments held by the fund at April 30, 2015 was $183,989.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were security transfers in the amount of $2,059,301 from Level 1 to Level 2 for the period ended April 30, 2015. The transfers between Level 1 and Level 2 were primarily due to the use of international fair valuation by the fund. There were no transfers in or out of Level 3 during the period.

See financial notes 77

 Schwab International Core Equity Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments, at value (cost $556,540,389)		$593,824,039
Foreign currency, at value (cost $1,092,148)		1,092,879
Deposit with broker for futures contracts		950,400
Receivables:
Investments sold		8,472,325
Fund shares sold		5,527,762
Dividends		2,599,672
Foreign tax reclaims		259,706
Unrealized appreciation on forward foreign currency exchange contracts		2,322
Prepaid expenses	+	9,469
Total assets		612,738,574
Liabilities
Payables:
Investments bought		7,408,059
Investment adviser and administrator fees		62,748
Shareholder service fees		27,453
Fund shares redeemed		283,770
Variation margin on futures contracts		47,200
Accrued expenses	+	23,496
Total liabilities		7,852,726
Net Assets
Total assets		612,738,574
Total liabilities	−	7,852,726
Net assets		$604,885,848
Net Assets by Source
Capital received from investors		572,598,449
Net investment income not yet distributed		4,182,301
Net realized capital losses		(9,201,522	)
Net unrealized capital appreciation		37,306,620
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$604,885,848		59,947,642			$10.09

78 See financial notes

 Schwab International Core Equity Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends (net of foreign withholding taxes of $632,805)		$8,041,709
Interest	+	23
Total investment income		8,041,732
Expenses
Investment adviser and administrator fees		1,352,750
Shareholder service fees		574,231
Custodian fees		78,863
Portfolio accounting fees		38,152
Registration fees		27,170
Professional fees		23,148
Transfer agent fees		14,802
Shareholder reports		13,066
Independent trustees’ fees		4,001
Interest expense		7
Other expenses	+	6,639
Total expenses		2,132,829
Expense reduction by CSIM and its affiliates	−	127,020
Net expenses	−	2,005,809
Net investment income		6,035,923
Realized and Unrealized Gains (Losses)
Net realized losses on investments		(1,209,163	)
Net realized gains on futures contracts		325,681
Net realized losses on foreign currency transactions	+	(67,118	)
Net realized losses		(950,600	)
Net change in unrealized appreciation (depreciation) on investments		32,647,789
Net change in unrealized appreciation (depreciation) on futures contracts		(149,385	)
Net change in unrealized appreciation (depreciation) on foreign currency translations	+	43,242
Net change in unrealized appreciation (depreciation)	+	32,541,646
Net realized and unrealized gains		31,591,046
Increase in net assets resulting from operations		$37,626,969

See financial notes 79

 Schwab International Core Equity Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$6,035,923			$6,372,776
Net realized gains (losses)		(950,600	)		12,538,542
Net change in unrealized appreciation (depreciation)	+	32,541,646			(18,676,258	)
Increase in net assets from operations		37,626,969			235,060
Distributions to Shareholders
Distributions from net investment income		(6,697,762	)		(4,000,904	)
Distributions from net realized gains	+	(8,247,177	)		—
Total distributions		($14,944,939	)		($4,000,904	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			21,373,561		$204,034,542			35,207,779		$349,758,745
Shares reinvested			1,470,490		13,499,099			277,927		2,612,515
Shares redeemed	+		(6,144,011	)	(57,905,722	)		(7,226,558	)	(73,262,028	)
Net transactions in fund shares			16,700,040		$159,627,919			28,259,148		$279,109,232
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			43,247,602		$422,575,899			14,988,454		$147,232,511
Total increase	+		16,700,040		182,309,949			28,259,148		275,343,388
End of period			59,947,642		$604,885,848			43,247,602		$422,575,899
Net investment income not yet distributed					$4,182,301					$4,844,140

80 See financial notes

 Schwab Active Equity Funds

Financial Notes, unaudited

1. Business Structure of the Funds:

Each of the funds in this report is a series of Schwab Capital Trust (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 Capital Trust (organized May 7, 1993)	Schwab Target 2010 Fund
Schwab Core Equity Fund	Schwab Target 2015 Fund
Schwab Dividend Equity Fund	Schwab Target 2020 Fund
Schwab Large-Cap Growth Fund	Schwab Target 2025 Fund
Schwab Small-Cap Equity Fund	Schwab Target 2030 Fund
Schwab Hedged Equity Fund	Schwab Target 2035 Fund
Schwab Financial Services Fund	Schwab Target 2040 Fund
Schwab Health Care Fund	Schwab Target 2045 Fund
Schwab International Core Equity Fund	Schwab Target 2050 Fund
Schwab S&P 500 Index Fund	Schwab Target 2055 Fund
Schwab Small-Cap Index Fund	Schwab Fundamental US Large Company Index Fund
Schwab Total Stock Market Index Fund	Schwab Fundamental US Small Company Index Fund
Schwab International Index Fund	Schwab Fundamental International Large Company Index Fund
Schwab MarketTrack All Equity Portfolio	Schwab Fundamental International Small Company Index Fund
Schwab MarketTrack Growth Portfolio	Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab MarketTrack Balanced Portfolio	Schwab Fundamental Global Real Estate Index Fund
Schwab MarketTrack Conservative Portfolio	Schwab Monthly Income Fund - Moderate Payout
Laudus Small-Cap MarketMasters Fund	Schwab Monthly Income Fund - Enhanced Payout
Laudus International MarketMasters Fund	Schwab Monthly Income Fund - Maximum Payout
Schwab Balanced Fund

Each fund in this report offers one share class. Shares are bought and sold (subject to a redemption fee, see financial note 9) 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 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 SEC.

(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 market value. Among other things, these procedures allow the funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:

•  Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at halfway between the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.

81

 Schwab Active Equity Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

•  Securities for which no quoted value is available: The Board has adopted procedures to fair value each fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Each fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the funds pursuant to the valuation procedures.

•  Foreign equity security fair valuation: The Board has adopted procedures to fair value foreign equity securities that are traded in markets that close prior to a fund valuing its holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, each fund seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter “arbitrage” market timers, who seek to exploit delays between the change in the value of a fund’s portfolio holdings and the NAV of the fund’s shares, and seeks to help ensure that the prices at which the fund’s shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of a fund and that of its comparative index or benchmark. The Board regularly reviews fair value determinations made by the funds pursuant to these procedures.

•  Futures contracts and forward foreign currency exchange contracts (“forwards”): Futures contracts are valued at their settlement prices as of the close of their exchanges. Forwards are valued based on that day’s forward exchange rates or by using an interpolated forward exchange rate for contracts with interim settlement dates.

•  Short-term securities (60 days or less to maturity): A short-term security may be valued at its amortized cost when it approximates the security’s market value.

•  Underlying funds: Mutual funds are valued at their respective NAVs. Exchange traded funds (“ETFs”) traded on a recognized securities exchange are valued at the last reported sale price that day or the official closing price, if applicable.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the funds disclose the fair value of their investments in a hierarchy that prioritizes the significant inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If the funds determine that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

The three levels of the fair value hierarchy are as follows:

•  Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities, ETFs and futures contracts. Investments in mutual funds are valued daily at their NAVs, and investments in ETFs are valued daily at the last reported sale price or the official closing price, which are classified as Level 1 prices, without consideration to the classification level of the specific investments held by an underlying fund.

•  Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and

82 

 Schwab Active Equity Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

state, municipal and provincial obligations. In addition, international securities whose markets close hours before the funds value their holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board has approved a vendor that calculates fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

•  Level 3 — significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and 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 April 30, 2015 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 market value may change daily.

Forward Foreign Currency Exchange Contracts: Forwards are contracts to buy and sell a currency at a set price on a future date. The value of the forwards is accounted for as unrealized appreciation or depreciation until the contracts settle, at which time the gains or losses are realized.

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 allows the funds to terminate any loans at any given time. Securities lending income, as disclosed in each fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. A fund retains the right to recall a security on loan. The aggregate market value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan (at market value computed at the time of the loan). Total costs and expenses, including agent fees associated with securities lending activities under the trust’s Securities Lending Program paid to the unaffiliated lending agent are approximately 15% of the gross lending revenues.

83

 Schwab Active Equity Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

The value of the securities on loan and the related collateral as of April 30, 2015, if any, are disclosed in each fund’s Portfolio Holdings. The value of the securities on loan and the investments of cash collateral are also disclosed in each fund’s Statement of Assets and Liabilities.

Short Sales: When a fund sells securities short (sells securities it does not own), the fund identifies assets worth at least 100% of the value of the short securities as collateral. If the market value of the short securities subsequently falls, the fund can realize a gain by closing the short position. However, if the value rises, the fund typically would have to add to its collateral or close out its short position at a loss. The potential for losses associated with short positions is much greater than the original value of the securities sold short and may exceed amounts recorded in the Statement of Assets and Liabilities.

(c) Security Transactions:

Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.

Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the differences between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. These realized and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations in the Statement of Operations. The funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

If a fund sells securities short, it records the proceeds received as an asset and the obligation to buy back the securities as a liability. At the time a short sale is initiated, the asset and liability are of equal value and effectively cancel each other out. Subsequently, the fund values the liability side of the transaction according to the market price of the securities sold short, and values the asset side according to the value of the proceeds. When a fund closes out a short position (buys the security), it records the outcome as a realized gain or loss. Dividends accrued on securities sold short are recorded as an expense on a fund’s records and presented in the Statement of Operations. A fund may also incur stock loan fees which represent the cost of borrowing securities used for short sale transactions.

Gains realized by the funds on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. In those instances, the funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.

When a fund closes out a futures contract or forward position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.

(d) Investment Income:

Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the day they learn of the ex-dividend date. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.

Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.

84 

 Schwab Active Equity Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(e) Expenses:

Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to all funds within the trust generally are allocated among the funds in proportion to their average daily net assets.

(f) Distributions to Shareholders:

The funds make distributions from net investment income, if any, once a year, with the exception of Schwab Dividend Equity Fund which typically pays quarterly dividends. The funds make distributions from net realized capital gains, if any, once a year.

(g) Custody Credit:

Certain funds have an arrangement with their custodian bank, State Street Bank and Trust Company (“State Street”), under which the funds may receive a credit for their uninvested cash balance to offset their custody fees and accounting fees. The credit amounts, if any, are disclosed in the Statement of Operations as a reduction to a fund’s operating expenses.

(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. Accordingly, the funds distribute substantially all of their net investment income and realized net 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) Foreign Taxes:

The funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges and capital gains on investments. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in foreign markets in which the funds invest. These foreign taxes, if any, are paid by the funds and are disclosed in the Statement of Operations. Foreign taxes payable as of April 30, 2015, if any, are reflected in each fund’s Statement of Assets and Liabilities.

(k) 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.

(l) New Accounting Pronouncements:

In June 2014, Accounting Standards Update (“ASU”) No. 2014-11, Topic 860 Transfers and Servicing — Repurchase-to-Maturity Transactions, Repurchase Financings and Disclosures, was issued and is effective for interim periods beginning after 3/15/15 and annual periods beginning after December 15, 2014. The ASU modifies accounting guidance and enhances disclosure requirements for repurchase agreement and securities lending transactions. Management is currently evaluating the impact the adoption of ASU 2014-11 may have on the funds’ financial statement disclosures.

3. Risk Factors:

Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.

85

 Schwab Active Equity Funds

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

Market Risk. Equity markets rise and fall daily. As with any investment whose performance is tied to these markets, the value of the investment in a fund will fluctuate, which means that investors could lose money.

Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

Management Risk. The funds’ investment adviser makes investment decisions for the funds using a strategy based largely on historical information. There is no guarantee that a strategy based on historical information will produce the desired results in the future. In addition, the portfolio optimization process used by each fund to assist in constructing the fund’s portfolio does not assure successful investment. Securities selected with the assistance of the process may be negatively impacted by factors or events not foreseen in developing the process. As a result, a fund may have a lower return than if it were managed using another process or strategy.

Small-Cap Risk. Historically, small-cap stocks have been riskier than large- and mid-cap stocks, and their prices may move sharply, especially during market upturns and downturns. Small-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies. During a period when small-cap stocks fall behind other types of investments — large-cap and mid-cap stocks, for instance — a fund’s performance also will lag those investments.

Large- and Mid-Cap Risk. Both large- and mid-cap stocks tend to go in and out of favor based on market and economic conditions. However, stocks of mid-cap companies tend to be more vulnerable to adverse business or economic events than larger, more established companies. During a period when large- and mid-cap U.S. stocks fall behind other types of investments — small-cap stocks, for instance — a fund’s performance also will lag those investments.

Growth Investing Risk. Growth stocks can be volatile. Growth companies usually invest a high portion of earnings in their businesses and may lack the dividends of value stocks that can cushion stock prices in a falling market. The prices of growth stocks are based largely on projections of the issuer’s future earnings and revenues. If a company’s earnings or revenues fall short of expectations, its stock price may fall dramatically. Growth stocks may also be more expensive relative to their earnings or assets compared to value or other stocks.

Dividend Paying Risk. To the extent that a fund invests in dividend paying stocks, the fund’s performance will correlate directly with the performance of the dividend paying stock segment of the stock market, and the fund may underperform funds that do not limit their investments to dividend paying stocks. If stocks held by a fund reduce or stop paying dividends, the fund’s ability to generate income may be affected.

Derivatives Risk. A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as liquidity risk and market risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to credit risk, leverage risk, 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. Credit risk is the risk that the counterparty to a derivatives transaction may not fulfill its obligations. Leverage risk is the risk that a small percentage of assets invested in derivatives can have a disproportionately large impact on a fund. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause a fund to realize higher amounts of short-term capital gain. A fund’s use of derivatives could reduce the fund’s performance, increase its volatility, and could cause the fund to lose more than the initial amount invested.

Liquidity Risk. A particular investment may be difficult to purchase or sell. A fund may be unable to sell illiquid securities at an advantageous time or price.

Convertible Securities Risk. Convertible securities generally are debt obligations that pay income, but which may convert into common or preferred stock under certain circumstances. The value of a convertible security is influenced by the credit standing of the issuer, and changes in interest rates, with investment value declining as interest rates increase and increasing as interest rates decline. The price of a convertible security will also normally vary in some proportion to changes in the price of the underlying common stock because of the conversion or exercise feature.

ETF Risk. When a fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio of securities.

86 

 Schwab Active Equity Funds

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

REITs Risk. A fund’s investments in real estate investment trusts (“REITs”) will be subject to the risks associated with the direct ownership of real estate, including fluctuations in the value of underlying properties, defaults by borrowers or tenants, changes in interest rates and risks related to general or local economic conditions. REITs are also subject to certain additional risks; for example, REITs are dependent upon specialized management skills and cash flows, and may have their investments in relatively few properties, a small geographic area or a single property type. Failure of a company to qualify as a REIT under federal tax law may have adverse consequences on a fund. In addition, REITs have their own expenses, and a fund will bear a proportionate share of those expenses.

Short Sales Risk. Certain funds engage in short sales transactions. Short sales are transactions in which a fund sells a security it does not own. To complete a short sale, a fund must borrow the security to deliver to the buyer. A fund is then obligated to replace the borrowed security by purchasing the security at the market price at the time of replacement. This price may be more or less than the price at which the security was sold by a fund, and the fund will incur a loss if the price of the security sold short increases between the time of the short sales and the time the fund replaces the borrowed security.

To the extent a fund establishes both long and short positions in equity securities the fund’s long positions could decline in value at the same time that the value of the stocks sold short increase, thereby increasing the fund’s overall potential for loss. A fund’s short sales may result in a loss if the prices of the borrowed securities rise and it costs more to replace the borrowed securities. In contrast to a fund’s long positions, the potential loss on the fund’s short positions is unlimited. In addition, the lender of the borrowed securities may require a fund to return the securities on short notice, which may require the fund to purchase the borrowed securities at an unfavorable price, resulting in a loss.

Foreign Investment Risk. A fund’s investments in securities of foreign issuers may involve certain risks that are greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may be heightened in connection with investments in emerging markets. To the extent a fund’s investments in a single country or a limited number of countries represent a higher percentage of the fund’s assets, the fund assumes the risk that economic, political and social conditions in those countries will have a significant impact on its investment performance and it may be subject to increased price volatility.

Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Such countries often have less uniformity in accounting and reporting requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with a fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar.

Concentration Risk. The investments of certain funds are concentrated in issuers doing business in the same sector, and therefore, the companies in which a fund invests will be affected by many of the same factors, such as legislative or regulatory changes, intense competition for market share, and other competitive challenges. In addition, a fund is subject to the risks that stocks of these companies may underperform other segments of the equity market or stock market as a whole and are likely to have above-average volatility.

Security Lending Risk. Securities lending involves the risk of loss of rights in the collateral or delay in recovery of the collateral if the borrower fails to return the security loaned or becomes insolvent.

Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.

4. Affiliates and Affiliated Transactions:

Charles Schwab Investment Management, Inc. (“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 CSIM and the trust.

87

 Schwab Active Equity Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

For its advisory and administrative services to the funds, CSIM is entitled to receive an annual fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:

Schwab

Schwab

Schwab

Schwab

Schwab

Schwab

International

% of Average

Core

Dividend

Large-Cap

Small-Cap

Hedged

Core

Daily Net Assets

Equity Fund

Equity Fund

Growth Fund

Equity Fund

Equity Fund

Equity Fund

Flat rate

0.47%

0.62%

0.72%

0.81%

1.05%

0.58%

	Schwab		Schwab
% of Average	Financial		Health Care
Daily Net Assets	Services Fund		Fund
First $500 million		0.54%		0.54%
$500 million to $1 billion		0.515%		0.515%
Over $1 billion		0.49%		0.49%

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 service providers, including Charles Schwab & Co., Inc. (a broker-dealer affiliate of CSIM, “Schwab”), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the funds. Schwab serves as the funds’ paying agent under the Plan for making payments of the shareholder service fee due to the service providers (other than Schwab) under the Plan. All shareholder service fees paid by the funds to Schwab in its capacity as the funds’ paying agent will be passed through to the service providers, and Schwab will not retain any portion of such fees.

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 (or, in the case of payments made to Schwab, pursuant to Schwab’s written agreement with the funds). Payments under the Plan are made as described above regardless of Schwab’s or the service provider’s actual cost of providing the services. If the cost of providing the services under the Plan is less than the payment received, the unexpended portion of the fees may be retained as profit by Schwab or the service provider.

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”). The expense limitation as a percentage of average daily net assets is as follows:

Schwab		Schwab		Schwab		Schwab		Schwab
Core		Dividend		Large-Cap		Small-Cap		Hedged
Equity Fund		Equity Fund		Growth Fund		Equity Fund		Equity Fund
	0.75%		0.89%		0.99%		1.12%		1.33%	*

				Schwab
Schwab		Schwab		International
Financial		Health Care		Core
Services Fund		Fund		Equity Fund
	0.94%		0.82%		0.86%

* Excludes dividends and stock loan fees paid on securities sold short.

88 

 Schwab Active Equity Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Certain Schwab funds may own shares of other Schwab funds. The table below reflects the percentages of shares of each fund in this report that are owned by other Schwab funds as of April 30, 2015, as applicable:

	Underlying Funds
							Schwab
	Schwab		Schwab		Schwab		International
	Core		Dividend		Small-Cap		Core
	Equity Fund		Equity Fund		Equity Fund		Equity Fund
Schwab Target 2010 Fund		0.2%		0.1%		0.2%		0.4%
Schwab Target 2015 Fund		0.4%		0.2%		0.4%		0.7%
Schwab Target 2020 Fund		2.1%		1.1%		2.7%		4.3%
Schwab Target 2025 Fund		1.8%		1.0%		2.6%		3.7%
Schwab Target 2030 Fund		4.0%		2.1%		6.3%		8.3%
Schwab Target 2035 Fund		1.8%		0.9%		3.1%		3.8%
Schwab Target 2040 Fund		4.8%		2.6%		8.8%		10.3%
Schwab Target 2045 Fund		0.3%		0.2%		0.6%		0.7%
Schwab Target 2050 Fund		0.3%		0.2%		0.6%		0.6%
Schwab Target 2055 Fund		0.2%		0.1%		0.3%		0.3%
Schwab Monthly Income Fund - Moderate Payout		—%		0.7%		—%		—%
Schwab Monthly Income Fund - Enhanced Payout		—%		1.0%		—%		—%
Schwab Monthly Income Fund - Maximum Payout		—%		0.3%		—%		—%
Schwab Balanced Fund		3.6%		—%		—%		—%

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 only. The interest rate to be charged on a loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. 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 a 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:

The funds have access to custodian overdraft facilities, a committed line of credit of $150 million with State Street, an uncommitted line of credit of $100 million with Bank of America, N.A. and an uncommitted line of credit of $50 million with Brown Brothers Harriman & Co. The funds pay interest on the amounts they borrow at rates that are negotiated periodically. The funds also pay an annual fee to State Street for the committed line of credit.

There were no borrowings from the lines of credit by the funds during the period. However, the funds may have utilized their overdraft facility and incurred an interest expense, which is disclosed on a fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

89

 Schwab Active Equity Funds

Financial Notes, unaudited (continued)

7. Purchases and Sales/Maturities of Investment Securities:

For the period ended April 30, 2015, purchases and sales/maturities of securities (excluding short-term obligations) were as follows:

	Purchases of Securities		Sales/Maturities of Securities
Schwab Core Equity Fund		$1,012,886,384		$1,048,648,740
Schwab Dividend Equity Fund		706,165,233		788,386,613
Schwab Large-Cap Growth Fund		112,534,061		124,929,921
Schwab Small-Cap Equity Fund		336,806,761		340,588,686
Schwab Hedged Equity Fund*		137,019,672		149,024,441
Schwab Financial Services Fund		21,572,100		23,017,427
Schwab Health Care Fund		511,929,440		481,977,500
Schwab International Core Equity Fund		363,196,497		219,304,617

* Including securities sold short.

8. Derivatives:

Certain funds entered into equity index futures contracts during the report period. The funds invested in futures contracts to equitize available cash. The fair value and variation margin for futures contracts held at April 30, 2015 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, the month-end average contract values of futures contracts held by the funds and the month-end average number of contracts held were as follows:

	Contract Values		Number of Contracts
Schwab Core Equity Fund		$13,425,297		131
Schwab Dividend Equity Fund		10,725,300		104
Schwab Large-Cap Growth Fund		1,620,823		16
Schwab Small-Cap Equity Fund		5,229,317		43
Schwab Hedged Equity Fund		258,288		3
Schwab Financial Services Fund		509,800		5
Schwab Health Care Fund		6,079,446		59
Schwab International Core Equity Fund		9,547,802		105

The Schwab International Core Equity Fund invested in forwards during the report period. The fund invested in forwards in connection with the purchase and sale of portfolio securities to minimize the uncertainty of changes in future foreign currency exchange rates and to hedge exposure to certain currencies. Refer to financial note 2(b) for the fund’s accounting policies with respect to forwards and financial note 3 for disclosures concerning the risks of investing in forwards. During the period, the month-end average forward foreign currency notional amount and the month-end average unrealized appreciation (depreciation) were $360,683 and $387, respectively.

90 

 Schwab Active Equity Funds

Financial Notes, unaudited (continued)

8. Derivatives (continued):

As of April 30, 2015, the derivatives contracts held by the fund, categorized by primary risk exposure, were:

	Schwab
	International
	Core
	Equity Fund
Asset Derivatives	Fair Value
Equity Index - Futures Contracts1		$2,848
Forward Foreign Currency Exchange Contracts2		2,322
Total		$5,170
Liability Derivatives	Fair Value
Equity Index - Futures Contracts3		$—
Forward Foreign Currency Exchange Contracts4		—
Total		$—

1	Includes cumulative unrealized appreciation of futures contracts as reported in the Schedule of Portfolio Holdings. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.
2	Statement of Assets and Liabilities location: Unrealized appreciation on forward foreign currency exchange contracts.
3	Includes cumulative unrealized depreciation of futures contracts as reported in the Schedule of Portfolio Holdings. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.
4	Statement of Assets and Liabilities location: Unrealized depreciation on forward foreign currency exchange contracts.

The effect of the derivatives held by the Schwab International Core Equity Fund in the Statement of Operations for the period ended April 30, 2015 were:

	Schwab
	International
	Core
	Equity Fund
Equity Index Futures Contracts
Realized Gains (Losses)1		$325,681
Change in Unrealized Appreciation (Depreciation)2		(149,385	)
Forward Foreign Currency Exchange Contracts
Realized Gains (Losses)1		$2,281
Change in Unrealized Appreciation (Depreciation)2		2,322

1	Statement of Operations location: Net realized gains (losses) on futures contracts and net realized gains (losses) on foreign currency transactions.
2	Statement of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts and net change in unrealized appreciation (depreciation) on foreign currency translations.

The fund’s forwards are entered into pursuant to International Swaps and Derivatives Association, Inc. (“ISDA”) agreements which govern certain terms of derivative transactions. ISDA agreements typically contain, among other things, master netting provisions in the event of a default or other termination event. Master netting provisions allow the funds and the counterparty, in the event of a default or other termination event, to offset payable and receivable amounts for each party related to derivative contracts to one net amount payable by either the funds or the counterparty. The fund’s forwards, which are reported gross in the Statement of Assets and Liabilities, are presented in the table below. The following table presents the fund’s forwards, net of amounts available for offset under a master netting agreement and net of any related collateral received by the fund for assets and pledged by the fund for liabilities as of April 30, 2015.

91

 Schwab Active Equity Funds

Financial Notes, unaudited (continued)

8. Derivatives (continued):

Schwab International Core Equity Fund
			Gross Amounts Not Offset in the
			Statement of Assets and Liabilities
	Gross Amounts of Assets
	Presented in the		Financial		Cash Collateral		Net
Counterparty	Statement of Assets and Liabilities		Instruments		Received		Amounts(a)
State Street Bank & Trust Co.		$2,322		$—		$—		$2,322
Total		$2,322		$—		$—		$2,322
	Gross Amounts of Liabilities
	Presented in the		Financial		Cash Collateral		Net
Counterparty	Statement of Assets and Liabilities		Instruments		Pledged		Amounts(b)
State Street Bank & Trust Co.		$—		$—		$—		$—
Total		$—		$—		$—		$—

a	Represents the net amount due from the counterparty in the event of default.
b	Represents the net amount due to the counterparty in the event of default.

9. Redemption Fee:

The funds charge a 2.00% redemption fee on shares sold or exchanged within 30 days of the original purchase date. Such amounts are netted against redemption proceeds on the Statement of Changes in Net Assets. The redemption fees charged during the current and prior periods are:

	Current Period		Prior Period
	(11/1/14-4/30/15)		(11/1/13-10/31/14)
Schwab Core Equity Fund		$8,021		$14,486
Schwab Dividend Equity Fund		10,506		41,450
Schwab Large-Cap Growth Fund		1,744		3,756
Schwab Small-Cap Equity Fund		7,045		23,409
Schwab Hedged Equity Fund		5,407		3,590
Schwab Financial Services Fund		2,212		3,411
Schwab Health Care Fund		20,360		39,555
Schwab International Core Equity Fund		6,845		21,857

10. Federal Income Taxes:

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2014, the funds had capital loss carryforwards available to offset future net capital gains before the expiration dates as follows:

	Schwab			Schwab		Schwab		Schwab		Schwab
	Core			Dividend		Large-Cap		Small-Cap		Hedged
Expiration Date	Equity Fund			Equity Fund		Growth Fund		Equity Fund		Equity Fund
October 31, 2016		$20,327,999			$—		$—		$—		$—
October 31, 2017		1,636,580			—		—		—		—
Total		$21,964,579	*		$—		$—		$—		$—

92 

 Schwab Active Equity Funds

Financial Notes, unaudited (continued)

10. Federal Income Taxes (continued):

					Schwab
	Schwab		Schwab		International
	Financial		Health Care		Core
Expiration Date	Services Fund		Fund		Equity Fund
October 31, 2017		$22,923,793		$—		$7,906,337
October 31, 2018		170,394		—		—
Total		$23,094,187		$—		$7,906,337	*

* The Schwab Core Equity Fund and Schwab International Core Equity Fund have capital loss carryforwards acquired via mergers, which are subject to certain annual limitations in regard to availability to offset potential future capital gains.

Qualified late-year losses are certain capital and ordinary losses which occur during the portion of a fund’s taxable year subsequent to October 31. A fund may elect to treat any portion of qualified late-year losses as arising during the first day of the next taxable year. For the year ended October 31, 2014, the funds had late-year ordinary losses deferred and capital loss carryforwards utilized as follows:

	Schwab		Schwab		Schwab		Schwab		Schwab
	Core		Dividend		Large-Cap		Small-Cap		Hedged
	Equity Fund		Equity Fund		Growth Fund		Equity Fund		Equity Fund
Late-year ordinary losses deferred		$—		$—		$—		$—		($2,468,247	)
Capital loss carryforwards utilized		12,317,025		—		14,051,004		—		—
					Schwab
	Schwab		Schwab		International
	Financial		Health Care		Core
	Services Fund		Fund		Equity Fund
Capital loss carryforwards utilized		$8,384,496		$—		$4,262,847

As of October 31, 2014, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended October 31, 2014, the funds did not incur any interest or penalties.

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.

93

Trustees and Officers

The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust. The Fund Complex includes 95 funds.

The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-800-435-4000.

 Independent Trustees

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served1)	During the Past Five Years	the Trustee	Other Directorships
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 and Laudus Institutional Trust since 2010)	Senior Fellow, The Hoover Institution at Stanford University (Oct. 1979 – present); Senior Fellow Stanford Institute for Economic Policy Research (2000 – present); Professor of Public Policy, Stanford University (1994 – present).	74	Director, Gilead Sciences, Inc. (2005 – present)
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Private Investor.	74	Director, Symantec Corporation (2003 – present) Director, Corcept Therapeutics Incorporated (2004 – present) Director, Adamas Pharmaceuticals, Inc. (2009 – present)
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Retired. Executive Vice President and General Manager of Small Business Group, Intuit, Inc. (financial software and services firm for consumers and small businesses) (Dec. 2008 – Sept. 2013)	74	Director, KLA-Tencor Corporation (2008 – present)

94 

 Independent Trustees (continued)

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served1)	During the Past Five Years	the Trustee	Other Directorships
Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2015)	Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (May 2009 – present); Director, Asset International, Inc. (publisher of financial services information) (Jan. 2009 – Nov. 2014).	95	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 and Laudus Institutional Trust since 2010)	Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (Mar. 1990 –present).	74	Director, Eaton (2012 – present) Director and Chairman of the Audit Committee, Oneok Partners LP (2003 – 2013) Director, Oneok, Inc. (2009 – 2013) Lead Independent Director, Board of Cooper Industries (2002 – 2012)
Joseph H. Wender 1944 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010)	Senior Consultant, Goldman Sachs & Co., Inc. (investment banking and securities firm) (Jan. 2008 – present); Partner, Colgin Partners, LLC (vineyards) (Feb. 1998 – present).	74	Board Member and Chairman of the Audit Committee, Isis Pharmaceuticals (1994 – present)

95

 Interested Trustees

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served)	During the Past Five Years	the Trustee	Other Directorships
Charles R. Schwab2 1937 Chairman and Trustee (Chairman and Trustee of The Charles Schwab Family of Funds since 1989; Schwab Investments since 1991; Schwab Capital Trust since 1993; Schwab Annuity Portfolios since 1994; Laudus Trust and Laudus Institutional Trust since 2010)	Chairman and Director, The Charles Schwab Corporation (1986 – present); Chairman and Director of Charles Schwab & Co., Inc. (1971 – present); Chairman and Director of Charles Schwab Investment Management, Inc. (1989 – present); Chairman and Director of Charles Schwab Bank (2003 – present); Chairman and Chief Executive Officer of Schwab (SIS) Holdings Inc. I and Schwab International Holdings, Inc. (1996 – present); and Director, Chairman and Chief Executive Officer, Schwab Holdings, Inc. (1979 – present).	74	Chairman and Director, The Charles Schwab Corporation (1986 – present) Director, Yahoo! Inc. (2014 – present)
Walter W. Bettinger II2 1960 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (2008 – present); Director, Charles Schwab Bank (2006 – present); and Director Schwab Holdings, Inc. (2008 – present).	95	Director, The Charles Schwab Corporation (2008 – present)

 Officers of the Trust

Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served3)	Principal Occupations During the Past Five Years
Marie Chandoha 1961 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (January 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – August 2010).
George Pereira 1964 Treasurer and Principal Financial Officer, Schwab Funds Treasurer and Chief Financial Officer, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust and Laudus Institutional Trust since 2006)	Senior Vice President and Chief Financial Officer (Nov. 2004 – present), Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present) and Schwab ETFs (Oct. 2009 – present); Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present).

96 

 Officers of the Trust (continued)

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
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Equities, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009).
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Senior Managing Director, Global Head of Active Fixed-Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies Loomis, Sayles & Company (April 2006 – Jan. 2008).
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President (Sept. 2011 – present), Vice President (March 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present), Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds 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, Laudus Trust and Laudus Institutional Trust since 2005)	Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (March 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary, Schwab ETFs (Oct. 2009 – present).

1	Trustees remain in office until they resign, retire or are removed by shareholder vote. The Schwab and Laudus Funds’ retirement policy requires that independent trustees retire at age 72 or after twenty years as a trustee, whichever comes first. In addition, the retirement policy requires any independent trustee of Schwab Funds or Laudus Funds to retire from all Boards upon their required retirement date from either Board.
2	Mr. Schwab and Mr. Bettinger are Interested Trustees because they own stock of The Charles Schwab Corporation, the parent company of the investment adviser.
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 Boards.

.

97

Glossary

asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.

asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.

Barclays U.S. Aggregate Bond Index A broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-back securities (agency fixed-rate and hybrid ARM passthroughs), asset-backed securities, and commercial mortgage-backed securities.

Barclays U.S. Treasury Bills 1 − 3 Months Index An index that includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value.

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.

cap, capitalization See “market cap.”

capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.

Dividend Equity Spliced Index An internally calculated index, comprised of the S&P 500 Index (the Schwab Dividend Equity Fund’s former comparative index) from inception of the fund until the close of business on February 27, 2015 and the Russell 1000 Value Index thereafter.

Dow Jones Global Health Care Index An index that measures the performance of healthcare providers, researchers, and supplies producers around theworld.

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.

market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.

MSCI EAFE (Europe, Australasia, Far East) Index A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.

net asset value (NAV) The value of one share of a 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.

price-to-book ratio (P/B)  The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.

price-to-earnings ratio (P/E)  The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.

return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.

Russell 1000 Growth Index An index that is composed of larger-cap companies and measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values

Russell 1000 Index An index that measures the performance of the large-cap segment of the U.S. equity universe.

Russell 1000 Value Index An index that measures the performance of the large-cap segment of the U.S. equity universe.

Russell 2000 Index An index that measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values.

S&P 500 Index A market capitalization index that is designed to measure the performance of 500 leading publicly held companies in leading industries of the U.S. economy.

S&P 1500 SuperComposite Financial Sector Index A capitalization-weighted index designed to measure the performance of the financial sector of the S&P 1500 SuperComposite Index. The S&P SuperComposite 1500 is comprised of the 1500 companies included in the S&P 500, S&P MidCap 400 and S&P SmallCap 600 indices.

stock A share of ownership, or equity, in the issuing company.

total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.

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.

98 

Schwab Funds^® offers you an extensive family of mutual funds, each one based on a clearly defined investment approach and using disciplined management strategies. The list at right shows all currently available Schwab Funds.

Whether you are an experienced investor or just starting out, Schwab Funds can help you achieve your financial goals. An investor should consider a fund’s investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information can be found in the fund’s prospectus. Please call 1-800-435-4000 for a prospectus and brochure 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.csimfunds.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-800-435-4000.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.csimfunds.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.

The Schwab Funds Family^®

Stock Funds

Schwab Core Equity Fund^tm

Schwab Dividend Equity Fund^tm

Schwab Large-Cap Growth Fund^tm

Schwab Small-Cap Equity Fund^tm

Schwab Hedged Equity Fund^tm

Schwab Financial Services Fund^tm

Schwab Health Care Fund^tm

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^tm

Schwab^® S&P 500 Index Fund

Schwab 1000 Index^® Fund

Schwab Small-Cap Index Fund^®

Schwab Total Stock Market Index Fund^®

Schwab International Index Fund^®

Asset Allocation Funds

Schwab Balanced Fund^tm

Schwab MarketTrack All Equity Portfolio^tm

Schwab MarketTrack Growth Portfolio^tm

Schwab MarketTrack Balanced Portfolio^tm

Schwab MarketTrack Conservative Portfolio^tm

Schwab Target 2010 Fund

Schwab Target 2015 Fund

Schwab Target 2020 Fund

Schwab Target 2025 Fund

Schwab Target 2030 Fund

Schwab Target 2035 Fund

Schwab Target 2040 Fund

Schwab Target 2045 Fund

Schwab Target 2050 Fund

Schwab Target 2055 Fund

Schwab^® Monthly Income Fund – Moderate Payout

Schwab^® Monthly Income Fund – Enhanced Payout

Schwab^® Monthly Income Fund – Maximum Payout

Bond Funds

Schwab Short-Term Bond Market Fund^tm

Schwab Intermediate-Term Bond Fund^tm

Schwab Total Bond Market Fund^tm

Schwab GNMA Fund^tm

Schwab^® Treasury Inflation Protected Securities Index Fund

Schwab Tax-Free Bond Fund^tm

Schwab California Tax-Free Bond Fund^tm

Schwab Money Funds

Schwab offers an array of money market funds¹. Choose from taxable or tax-advantaged alternatives. Many can be linked to your eligible Schwab account to “sweep” cash balances automatically, subject to availability, when you’re between investments. Or, for your larger cash reserves, choose one of our Value Advantage Investments^®.

¹ Investments in money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency and, although they seek to preserve the value of your investment at $1 per share, it is possible to lose money.

Investment Adviser

Charles Schwab Investment Management, Inc.

211 Main Street, San Francisco, CA 94105

Schwab Funds^®

1-800-407-0256

This report is not authorized for distribution to prospective investors

unless preceded or accompanied by a current prospectus.

^© 2015 Charles Schwab & Co., Inc. All rights reserved.

Member SIPC^®

Printed on recycled paper.

MFR27230-12

00143417

Semiannual report dated April 30, 2015, enclosed.

Schwab Fundamental Index* Funds

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

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* SCHWAB is a registered trademark of Charles Schwab & Co., Inc. FUNDAMENTAL INDEX is a registered trademark of Research Affiliates LLC.

This wrapper is not part of the shareholder report.

Schwab Fundamental Index* Funds

Semiannual Report

April 30, 2015

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 is a registered trademark of Charles Schwab & Co., Inc. FUNDAMENTAL INDEX is a registered trademark of Research Affiliates LLC.

This page is intentionally left blank.

Schwab Fundamental Index Funds

In This Report

Performance at a Glance	2
From the President	3
Fund Management	5
Performance and Fund Facts
Schwab Fundamental US Large Company Index Fund	6
Schwab Fundamental US Small Company Index Fund	7
Schwab Fundamental International Large Company Index Fund	8
Schwab Fundamental International Small Company Index Fund	10
Schwab Fundamental Emerging Markets Large Company Index Fund	12
Fund Expenses	14
Financial Statements and Condensed Portfolio Holdings
Schwab Fundamental US Large Company Index Fund	15
Schwab Fundamental US Small Company Index Fund	22
Schwab Fundamental International Large Company Index Fund	29
Schwab Fundamental International Small Company Index Fund	37
Schwab Fundamental Emerging Markets Large Company Index Fund	46
Financial Notes	54
Trustees and Officers	65
Glossary	69

Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: Charles Schwab & Co., Inc. (Schwab).

The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS), which was developed by, and is the exclusive property of MSCI and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab. The Industry classifications used in the schedules of Portfolio Holdings are sub-categories of Sector classifications.

Performance at a Glance

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment 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.csimfunds.com.

Total Return for the 6 Months Ended April 30, 2015
Schwab Fundamental US Large Company Index Fund (Ticker Symbol: SFLNX)	3.45%
Russell Fundamental U.S. Large Company Index	3.64%
Fund Category: Morningstar Large Value	3.24%
Performance Details	page 6
Schwab Fundamental US Small Company Index Fund (Ticker Symbol: SFSNX)	5.66%
Russell Fundamental U.S. Small Company Index	5.84%
Fund Category: Morningstar Small Blend	3.71%
Performance Details	page 7
Schwab Fundamental International Large Company Index Fund1 (Ticker Symbol: SFNNX)	4.49%
Russell Fundamental Developed ex-U.S. Large Company Index (Net)2	5.50%
Fund Category: Morningstar Foreign Large Value	5.07%
Performance Details	pages 8-9
Schwab Fundamental International Small Company Index Fund1 (Ticker Symbol: SFILX)	7.58%
Russell Fundamental Developed ex-U.S. Small Company Index (Net)2	8.95%
Fund Category: Morningstar Foreign Small/Mid Blend	7.93%
Performance Details	pages 10-11
Schwab Fundamental Emerging Markets Large Company Index Fund1 (Ticker Symbol: SFENX)	1.60%
Russell Fundamental Emerging Markets Large Company Index (Net)2	2.31%
Fund Category: Morningstar Diversified Emerging Markets	0.87%
Performance Details	pages 12-13

Minimum Initial Investment³ $ 100

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.

Fund 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.

Index ownership— each of the names identifying the Russell Fundamental Index Series is a joint trademark of Frank Russell Company (“Russell”) and Research Affiliates LLC (“RA”) and is used by the funds under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Index Series. Russell is the owner of the trademarks and copyrights related to the Russell Indexes. The Schwab Fundamental Index Funds are not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the funds.

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	The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
2	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
3	Please see the funds’ prospectus for further detail and eligibility requirements.

2 Schwab Fundamental Index Funds

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.

Dear Shareholder,

At Charles Schwab Investment Management, we design our investment products to serve as part of the foundation of an investor’s portfolio.

In recent years, fundamentally weighted index strategies have enjoyed significant asset growth as investors have embraced the value of alternative index strategies. Unlike traditional equity indices that are often weighted by market capitalization, fundamentally weighted indices select and weight stocks by objective non-price measures, such as dividends, cash flow, and sales. By using this weighting methodology, we believe the Schwab Fundamental Index Funds can serve as either a standalone core investment, or as a complement to traditional cap-weighted indexing and active management.

For the six-month reporting period ended April 30, 2015, many of the funds generated returns that were closely aligned with their respective indices and reflected positive performances by both U.S. and international equities. However, timing differences in fair valuation of holdings detracted from relative performance for both the Schwab Fundamental International Large Company Index Fund and the Schwab Fundamental International Small Company Index Fund. In the U.S., the economy continued to rebound as the Federal Reserve maintained historically low short-term interest rates, benefitting U.S. equities. Outside the U.S., geopolitical tensions in Russia began to subside and Greece reached a point of relative stability, though fluctuating oil prices contributed to increased market volatility.

 Asset Class Performance Comparison % returns during the six months ended 4/30/2015

This graph compares the performance of various asset classes during the report period. Final performance figures for the period are in the key below.

	4.40%	S&P 500® Index: measures U.S. large-cap stocks
	4.65%	Russell 2000® Index: measures U.S. small-cap stocks
	6.81%	MSCI EAFE® Index (Net): measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East
	2.06%	Barclays U.S. Aggregate Bond Index: measures the U.S. bond market
	0.01%	Barclays U.S. Treasury Bills 1-3 Months Index: measures short-term U.S. Treasury obligations

Index figures assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Past performance is not an indication of future results.

For index definitions, please see the Glossary.

Data source: Index provider websites and CSIM.

Nothing in this report represents a recommendation of a security by the investment adviser.

Management views and portfolio holdings may have changed since the report date.

Schwab Fundamental Index Funds 3

From the President continued

For the six-month reporting period ended April 30, 2015, many of the funds generated returns that were closely aligned with their respective indices and reflected positive performances by both U.S. and international equities.

The U.S. dollar remained strong as many central banks, including the European Central Bank and the Bank of Japan, increased economic measures to stimulate growth and combat threats of deflation. When the U.S. dollar rises against foreign currencies, returns on overseas investments will generally be reduced in U.S. dollar terms. However, as international markets performed particularly well this reporting period, returns on many of these investments were positive even when translated into U.S. dollars. Reflecting these conditions, the Russell Fundamental U.S. Large Company Index returned 3.6%, and the Russell Fundamental Developed ex-U.S. Large Company Index returned 5.5%.¹

For more information about the performance, holdings, and portfolio characteristics of the Schwab Fundamental Index Funds, please continue reading this report. In addition, you can find further details about these funds by visiting our new website at www.csimfunds.com, which provides improved functionality, enhanced design, and access to industry insights. We are also happy to hear from you at 1-800-435-4000.

Sincerely,

For full definitions of the referenced indices, please see the Glossary

¹ The total return cited is calculated net of foreign withholding taxes.

4 Schwab Fundamental Index Funds

Fund Management

	Agnes Hong, CFA, Vice President and Head of Passive Equities, leads the portfolio management teams of Schwab’s index mutual funds and equity ETFs. She also has overall responsibility for all aspects of the management of the funds. Prior to joining CSIM in 2009, Ms. Hong spent five years as a portfolio manager at Barclays Global Investors (subsequently acquired by BlackRock), where she managed institutional index funds and quantitative active funds. Prior to that, Ms. Hong worked in management consulting and product management, servicing global financial services clients.
	Ferian Juwono, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors), where he spent over three years as a portfolio manager, managing equity index funds for institutional clients, and nearly two years as a senior business analyst. Prior to that, Mr. Juwono worked for over four years as a senior financial analyst with Union Bank of California.
	Jane Qin, Portfolio Manager, is responsible for the day-to-day co-management of the Schwab Fundamental US Large Company Index Fund, Schwab Fundamental US Small Company Index Fund, Schwab Fundamental International Large Company Index Fund, and Schwab Fundamental International Small Company Index Fund. Prior to joining CSIM in 2013, Ms. Qin worked at The Bank of New York Mellon Corporation, where she spent more than two years as an associate equity portfolio manager, and nearly two years as a performance analyst. Prior to that, Ms. Qin worked at Wells Fargo Fund Management as a mutual fund analyst and at CIGNA Reinsurance in the Variable Annuity Death Benefits (VADBe) Risk Management group as a risk analyst.

Schwab Fundamental Index Funds 5

Schwab Fundamental US Large Company Index Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2,3

Fund and Inception Date	6 Months			1 Year			5 Years			Since Inception
Fund: Schwab Fundamental US Large Company Index Fund (4/2/07)		3.45	%		9.96	%		13.60	%		7.74	%
Russell Fundamental U.S. Large Company Index		3.64	%		10.35	%		N/A			N/A
Fundamental U.S. Large Company Spliced Index		3.64	%		10.35	%		14.02	%		7.97	%
Fund Category: Morningstar Large Value		3.24	%		8.36	%		12.18	%		5.39	%

Fund Expense Ratios⁴: Net 0.35%; Gross 0.39%

 Statistics

Number of Holdings	623
Weighted Average Market Cap (millions)	$116,886
Price/Earnings Ratio (P/E)	20.1
Price/Book Ratio (P/B)	2.4
Portfolio Turnover Rate5	4%

 Sector Weightings % of Investments

Energy	14.2%
Information Technology	13.9%
Consumer Discretionary	13.0%
Financials	12.8%
Health Care	11.7%
Consumer Staples	11.6%
Industrials	9.8%
Utilities	4.2%
Materials	3.9%
Telecommunication Services	3.7%
Other	1.2%
Total	100.0%

 Top Equity Holdings % of Net Assets⁶

Exxon Mobil Corp.	4.4%
Chevron Corp.	2.5%
AT&T, Inc.	2.1%
Microsoft Corp.	2.0%
Wal-Mart Stores, Inc.	1.4%
The Procter & Gamble Co.	1.4%
International Business Machines Corp.	1.4%
General Electric Co.	1.4%
Pfizer, Inc.	1.4%
JPMorgan Chase & Co.	1.3%
Total	19.3%

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— “Russell Fundamental U.S. Large Company Index” is a joint trademark of Frank Russell Company (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Index Series. Schwab Fundamental Index Funds are not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	On October 27, 2009, the Investor Share class, Select Share class and Institutional Share class were combined into a single class of shares of the fund. The performance history of the fund prior to October 27, 2009 is that of the fund’s former Institutional Shares.
4	As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
5	Not annualized.
6	This list is not a recommendation of any security by the investment adviser.

6 Schwab Fundamental Index Funds

Schwab Fundamental US Small Company Index Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2,3

Fund and Inception Date	6 Months			1 Year			5 Years			Since Inception
Fund: Schwab Fundamental US Small Company Index Fund (4/2/07)		5.66	%		9.64	%		12.92	%		8.73	%
Russell Fundamental U.S. Small Company Index		5.84	%		9.90	%		N/A			N/A
Fundamental U.S. Small Company Spliced Index		5.84	%		9.90	%		13.23	%		9.30	%
Fund Category: Morningstar Small Blend		3.71	%		6.86	%		12.17	%		6.44	%

Fund Expense Ratios⁴: Net 0.35%; Gross 0.44%

 Statistics

Number of Holdings	879
Weighted Average Market Cap (millions)	$4,453
Price/Earnings Ratio (P/E)	63.3
Price/Book Ratio (P/B)	2.0
Portfolio Turnover Rate5	10%

 Sector Weightings % of Investments

Financials	20.3%
Industrials	19.3%
Consumer Discretionary	15.4%
Information Technology	13.5%
Health Care	7.1%
Materials	5.6%
Energy	5.3%
Utilities	3.6%
Consumer Staples	3.1%
Telecommunication Services	1.0%
Other	5.8%
Total	100.0%

 Top Equity Holdings % of Net Assets⁶

Office Depot, Inc.	0.3%
Level 3 Communications, Inc.	0.3%
Centene Corp.	0.3%
Perrigo Co., plc	0.3%
Cypress Semiconductor Corp.	0.3%
JetBlue Airways Corp.	0.3%
Cerner Corp.	0.3%
Akamai Technologies, Inc.	0.3%
Global Payments, Inc.	0.3%
First American Financial Corp.	0.3%
Total	3.0%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Index ownership— “Russell Fundamental U.S. Small Company Index” is a joint trademark of Frank Russell Company (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Index Series. Schwab Fundamental Index Funds are not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

Small-company stocks are subject to greater volatility than many other asset classes.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	On October 27, 2009, the Investor Share class, Select Share class and Institutional Share class were combined into a single class of shares of the fund. The performance history of the fund prior to October 27, 2009 is that of the fund’s former Institutional Shares.
4	As stated in the prospectus. The expense information shown in the table has been restated to reflect the removal of expenses incurred indirectly by the fund through its investment in business development companies (“BDCs”). The fund’s benchmark index no longer includes BDCs. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
5	Not annualized.
6	This list is not a recommendation of any security by the investment adviser.

Schwab Fundamental Index Funds 7

Schwab Fundamental International Large Company Index Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2,3

Fund and Inception Date	6 Months			1 Year			5 Years			Since Inception
Fund: Schwab Fundamental International Large Company Index Fund (4/2/07)		4.49	%		-1.95	%		6.42	%		1.64	%
Russell Fundamental Developed ex-U.S. Large Company Index (Net)4		5.50	%		-1.28	%		N/A			N/A
Fundamental Developed ex-U.S. Large Company Spliced Index		5.50	%		-1.28	%		6.80	%		2.47	%
Fund Category: Morningstar Foreign Large Value		5.07	%		-0.39	%		6.18	%		0.70	%

Fund Expense Ratios⁵: Net 0.35%; Gross 0.48%

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.

The fund’s performance relative to the index may be affected by fair-value pricing, see financial note 2 for more information.

Index ownership— “Russell Fundamental Developed ex-U.S. Large Company Index” is a joint trademark of Frank Russell Company (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Index Series. Schwab Fundamental Index Funds are not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	On October 19, 2009, the Investor Share class, Select Share class and Institutional Share class were combined into a single class of shares of the fund. The performance history of the fund prior to October 19, 2009 is that of the fund’s former Institutional Shares.
4	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
5	As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.

8 Schwab Fundamental Index Funds

 Schwab Fundamental International Large Company Index Fund

Performance and Fund Facts as of 04/30/15 continued

 Statistics

Number of Holdings	828
Weighted Average Market Cap (millions)	$59,763
Price/Earnings Ratio (P/E)	27.7
Price/Book Ratio (P/B)	1.4
Portfolio Turnover Rate1	4%

 Sector Weightings % of Investments

Financials	18.2%
Energy	12.9%
Industrials	12.5%
Consumer Discretionary	11.2%
Materials	9.5%
Consumer Staples	9.3%
Telecommunication Services	7.4%
Health Care	6.8%
Utilities	5.7%
Information Technology	4.3%
Other	2.2%
Total	100.0%

 Top Equity Holdings % of Net Assets²

BP plc	2.4%
Royal Dutch Shell plc, A Shares	1.9%
Total S.A.	1.6%
HSBC Holdings plc	1.3%
Royal Dutch Shell plc, B Shares	1.2%
Banco Santander S.A.	1.1%
Telefonica S.A.	1.1%
Nestle S.A. – Reg’d	1.1%
Eni S.p.A.	1.0%
Toyota Motor Corp.	1.0%
Total	13.7%

 Country Weightings % of Investments

Japan	21.7%
United Kingdom	16.4%
France	10.4%
Germany	8.8%
Canada	6.5%
Switzerland	5.5%
Netherlands	5.3%
Australia	5.2%
Spain	4.1%
Italy	3.8%
Other Countries	12.3%
Total	100.0%

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.

1	Not annualized.
2	This list is not a recommendation of any security by the investment adviser.

Schwab Fundamental Index Funds 9

Schwab Fundamental International Small Company Index Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2,3

Fund and Inception Date	6 Months			1 Year			5 Years			Since Inception
Fund: Schwab Fundamental International Small Company Index Fund (1/31/08)		7.58	%		2.79	%		8.34	%		5.94	%
Russell Fundamental Developed ex-U.S. Small Company Index (Net)4		8.95	%		3.67	%		N/A			N/A
Fundamental Developed ex-U.S. Small Company Spliced Index		8.95	%		3.67	%		8.91	%		7.41	%
Fund Category: Morningstar Foreign Small/Mid Blend		7.93	%		1.22	%		9.78	%		5.05	%

Fund Expense Ratios⁵: Net 0.51%; Gross 0.82%

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.

The fund’s performance relative to the index may be affected by fair-value pricing, see financial note 2 for more information.

Index ownership— “Russell Fundamental Developed ex-U.S. Small Company Index” is a joint trademark of Frank Russell Company (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Index Series. Schwab Fundamental Index Funds are not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	On October 19, 2009, the Investor Share class, Select Share class and Institutional Share class were combined into a single class of shares of the fund. The performance history of the fund prior to October 19, 2009 is that of the fund’s former Institutional Shares.
4	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
5	As stated in the prospectus. Includes acquired fund fees and expenses incurred indirectly by the fund through its investments in other investment companies. The annualized weighted average expense ratio of these investment companies was 0.02%. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.

10 Schwab Fundamental Index Funds

 Schwab Fundamental International Small Company Index Fund

Performance and Fund Facts as of 04/30/15 continued

 Statistics

Number of Holdings	1,316
Weighted Average Market Cap (millions)	$3,635
Price/Earnings Ratio (P/E)	29.6
Price/Book Ratio (P/B)	1.4
Portfolio Turnover Rate1	17%

 Sector Weightings % of Investments

Industrials	22.9%
Consumer Discretionary	19.0%
Financials	16.4%
Materials	10.7%
Information Technology	8.9%
Consumer Staples	7.8%
Health Care	4.5%
Energy	3.6%
Utilities	1.5%
Telecommunication Services	1.1%
Other	3.6%
Total	100.0%

 Top Equity Holdings % of Net Assets²

iShares MSCI EAFE Small Cap ETF	0.8%
Dixons Carphone plc	0.4%
Klepierre	0.3%
Evraz plc	0.2%
Dena Co., Ltd.	0.2%
Alps Electric Co., Ltd.	0.2%
Kikkoman Corp.	0.2%
NOK Corp.	0.2%
Banca Popolare Di Milano Scarl	0.2%
Natixis S.A.	0.2%
Total	2.9%

 Country Weightings % of Investments

Japan	37.6%
United Kingdom	12.6%
Canada	7.8%
Australia	5.3%
France	4.5%
Germany	3.7%
United States	3.6%
Switzerland	2.8%
Hong Kong	2.7%
Italy	2.5%
Other Countries	16.9%
Total	100.0%

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

Small-company stocks are subject to greater volatility than many other asset classes.

International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.

1	Not annualized.
2	This list is not a recommendation of any security by the investment adviser.

Schwab Fundamental Index Funds 11

Schwab Fundamental Emerging Markets Large Company Index Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2,3

Fund and Inception Date	6 Months			1 Year			5 Years			Since Inception
Fund: Schwab Fundamental Emerging Markets Large Company Index Fund (1/31/08)		1.60	%		1.13	%		0.51	%		0.58	%
Russell Fundamental Emerging Markets Large Company Index (Net)4		2.31	%		2.53	%		N/A			N/A
Fundamental Emerging Markets Large Company Spliced Index		2.31	%		2.53	%		1.66	%		2.32	%
Fund Category: Morningstar Diversified Emerging Markets		0.87	%		4.12	%		2.52	%		0.97	%

Fund Expense Ratios⁵: Net 0.49%; Gross 0.85%

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.

The fund’s performance relative to the index may be affected by fair-value pricing, see financial note 2 for more information.

Index ownership— “Russell Fundamental Emerging Markets Large Company Index” is a joint trademark of Frank Russell Company (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Index Series. Schwab Fundamental Index Funds are not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	On October 19, 2009, the Investor Share class, Select Share class and Institutional Share class were combined into a single class of shares of the fund. The performance history of the fund prior to October 19, 2009 is that of the fund’s former Institutional Shares.
4	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
5	As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.

12 Schwab Fundamental Index Funds

 Schwab Fundamental Emerging Markets Large Company Index Fund

Performance and Fund Facts as of 04/30/15 continued

 Statistics

Number of Holdings	305
Weighted Average Market Cap (millions)	$62,108
Price/Earnings Ratio (P/E)	17.0
Price/Book Ratio (P/B)	0.9
Portfolio Turnover Rate1	13%

 Sector Weightings % of Investments

Energy	25.6%
Financials	20.0%
Information Technology	14.8%
Materials	11.0%
Telecommunication Services	10.1%
Industrials	5.7%
Consumer Discretionary	5.5%
Consumer Staples	3.5%
Utilities	3.3%
Other	0.5%
Total	100.0%

 Top Equity Holdings % of Net Assets²

Samsung Electronics Co., Ltd.	4.0%
China Construction Bank Corp., Class H	2.4%
China Mobile Ltd.	2.3%
Gazprom OAO	2.2%
Gazprom OAO ADR	2.1%
Industrial & Commercial Bank of China Ltd., Class H	2.0%
Petroleo Brasileiro S.A, Preferred Stock	1.9%
Taiwan Semiconductor Manufacturing Co., Ltd.	1.8%
Bank of China Ltd., Class H	1.8%
China Petroleum & Chemical Corp., Class H	1.8%
Total	22.3%

 Country Weightings % of Investments

China	19.4%
Republic of Korea	18.1%
Brazil	13.4%
Russia	13.0%
Taiwan	11.8%
South Africa	6.6%
India	3.2%
Mexico	3.1%
Other Countries	11.4%
Total	100.0%

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.

1	Not annualized.
2	This list is not a recommendation of any security by the investment adviser.

Schwab Fundamental Index Funds 13

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 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 November 1, 2014 and held through April 30, 2015.

Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ¸ $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.

You may use this information to compare the ongoing costs of investing in a fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, 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.

					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio1		Account Value		(Net of Expenses)		During Period2
	(Annualized)		at 11/1/14		at 4/30/15		11/1/14–4/30/15
Schwab Fundamental US Large Company Index Fund
Actual Return		0.35%	$	1,000.00	$	1,034.50	$	1.77
Hypothetical 5% Return		0.35%	$	1,000.00	$	1,023.06	$	1.76
Schwab Fundamental US Small Company Index Fund
Actual Return		0.35%	$	1,000.00	$	1,056.60	$	1.78
Hypothetical 5% Return		0.35%	$	1,000.00	$	1,023.06	$	1.76
Schwab Fundamental International Large Company Index Fund
Actual Return		0.35%	$	1,000.00	$	1,044.90	$	1.77
Hypothetical 5% Return		0.35%	$	1,000.00	$	1,023.06	$	1.76
Schwab Fundamental International Small Company Index Fund
Actual Return3		0.49%	$	1,000.00	$	1,075.80	$	2.52
Hypothetical 5% Return3		0.49%	$	1,000.00	$	1,022.37	$	2.46
Schwab Fundamental Emerging Markets Large Company Index Fund
Actual Return		0.49%	$	1,000.00	$	1,016.00	$	2.45
Hypothetical 5% Return		0.49%	$	1,000.00	$	1,022.37	$	2.46

1	Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights.
2	Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days of the period, and divided by the 365 days of the fiscal year.
3	The expenses incurred by the underlying funds in which the fund invests are not included in this ratio.

14 Schwab Fundamental Index Funds

Schwab Fundamental US Large Company Index Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		15.56			13.65			10.76			9.51			9.05			7.63
Income (loss) from investment operations:
Net investment income (loss)		0.17	1		0.26			0.24			0.21			0.18			0.14
Net realized and unrealized gains (losses)		0.36			1.87			2.89			1.22			0.43			1.37
Total from investment operations		0.53			2.13			3.13			1.43			0.61			1.51
Less distributions:
Distributions from net investment income		(0.26	)		(0.22	)		(0.24	)		(0.18	)		(0.15	)		(0.09	)
Distributions from net realized gains		(0.39	)		—			—			—			—			—
Total distributions		(0.65	)		(0.22	)		(0.24	)		(0.18	)		(0.15	)		(0.09	)
Net asset value at end of period		15.44			15.56			13.65			10.76			9.51			9.05
Total return (%)		3.45	2		15.74			29.67			15.29			6.74			19.95
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		0.35	3		0.35			0.35			0.32	4		0.35			0.35
Gross operating expenses		0.39	3		0.39			0.41			0.44			0.44			0.45
Net investment income (loss)		2.17	3		1.95			2.03			2.13			2.06			1.77
Portfolio turnover rate		4	2		14			10			32	5		11			27
Net assets, end of period ($ x 1,000,000)		5,081			4,465			3,020			1,960			1,490			1,019

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

⁴ The ratio of net operating expenses would have been 0.35%, if voluntary waiver by CSIM had not been included.

⁵ Portfolio turnover would have been 12%, if rebalancing trades had not been included due to a change in the fund’s index.

See financial notes 15

 Schwab Fundamental US Large Company Index Fund

Condensed Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows the fund’s 50 largest portfolio holdings in unaffiliated issuers, and any holdings exceeding 1% of the fund’s net assets as of the report date, and any affiliated issuers. The remaining securities held by the fund are grouped as “Other Securities” in each category. You can request a complete schedule of portfolio holdings as of the report date, free of charge, by calling Schwab Funds^® at 1-800-435-4000. This complete schedule, filed on the fund’s Form N-CSRS, is also available on the SEC’s website at www.sec.gov.

In addition, the fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15-20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.1%	Common Stock		3,840,283,826		5,034,584,197
	1	.2%	Other Investment Companies		60,915,618		60,915,618
	100	.3%	Total Investments		3,901,199,444		5,095,499,815
	(0	.3%)	Other Assets and Liabilities, Net				(14,998,784	)
	100	.0%	Net Assets				5,080,501,031

	Number		% of Net		Value
Security	of Shares		Assets		($)
Common Stock 99.1% of net assets
Automobiles & Components 1.2%
Other Securities				1.2		61,861,189
Banks 5.4%
Bank of America Corp.		3,467,594		1.1		55,238,772
Citigroup, Inc.		653,472		0.7		34,843,127
JPMorgan Chase & Co.		1,084,223		1.3		68,587,947
Wells Fargo & Co.		945,963		1.0		52,122,561
Other Securities				1.3		63,892,000
				5.4		274,684,407
Capital Goods 7.5%
General Electric Co.		2,567,498		1.4		69,527,846
United Technologies Corp.		243,892		0.5		27,742,715
Other Securities				5.6		283,667,606
				7.5		380,938,167
Commercial & Professional Supplies 0.8%
Other Securities				0.8		38,899,518
Consumer Durables & Apparel 1.1%
Other Securities				1.1		55,493,325
Consumer Services 1.7%
McDonald’s Corp.		330,188		0.6		31,879,651
Other Securities				1.1		52,897,973
				1.7		84,777,624
Diversified Financials 3.1%
Berkshire Hathaway, Inc., Class B *		267,426		0.7		37,763,225
The Charles Schwab Corp. (a)		88,815		0.1		2,708,858
Other Securities				2.3		117,765,636
				3.1		158,237,719
Energy 14.2%
Chevron Corp.		1,165,412		2.5		129,430,657
ConocoPhillips		876,282		1.2		59,517,073
Exxon Mobil Corp.		2,571,981		4.4		224,713,980
Occidental Petroleum Corp.		276,700		0.4		22,163,670
Phillips 66		467,808		0.7		37,101,852
Schlumberger Ltd.		255,163		0.5		24,140,971
Valero Energy Corp.		428,666		0.5		24,391,095
Other Securities				4.0		200,706,916
				14.2		722,166,214
Food & Staples Retailing 4.2%
Costco Wholesale Corp.		169,863		0.5		24,298,902
CVS Health Corp.		500,816		1.0		49,726,021
Wal-Mart Stores, Inc.		945,672		1.4		73,809,700
Walgreens Boots Alliance, Inc.		344,182		0.6		28,543,013
Other Securities				0.7		37,256,993
				4.2		213,634,629
Food, Beverage & Tobacco 5.3%
Altria Group, Inc.		445,016		0.4		22,273,051
PepsiCo, Inc.		383,363		0.7		36,465,489
Philip Morris International, Inc.		514,588		0.9		42,952,660
The Coca-Cola Co.		845,643		0.7		34,299,280
Other Securities				2.6		132,477,930
				5.3		268,468,410
Health Care Equipment & Services 5.9%
Anthem, Inc.		232,650		0.7		35,113,865
Medtronic plc		301,036		0.4		22,412,130
UnitedHealth Group, Inc.		379,696		0.8		42,298,134
Other Securities				4.0		201,496,659
				5.9		301,320,788
Household & Personal Products 2.1%
The Procter & Gamble Co.		893,635		1.4		71,052,919
Other Securities				0.7		36,806,524
				2.1		107,859,443
Insurance 3.1%
The Travelers Cos., Inc.		242,872		0.5		24,556,788
Other Securities				2.6		130,167,249
				3.1		154,724,037
Materials 3.9%
Other Securities				3.9		199,051,957

16 See financial notes

 Schwab Fundamental US Large Company Index Fund

Condensed Portfolio Holdings (Unaudited) continued

	Number		% of Net		Value
Security	of Shares		Assets		($)
Media 3.7%
Comcast Corp., Class A		499,157		0.6		28,831,308
The Walt Disney Co.		318,262		0.7		34,601,445
Time Warner, Inc.		278,833		0.4		23,536,294
Other Securities				2.0		102,536,004
				3.7		189,505,051
Pharmaceuticals, Biotechnology & Life Sciences 5.8%
Amgen, Inc.		176,523		0.5		27,874,747
Bristol-Myers Squibb Co.		342,761		0.4		21,844,159
Johnson & Johnson		576,907		1.1		57,229,174
Merck & Co., Inc.		643,762		0.8		38,342,465
Pfizer, Inc.		2,036,404		1.4		69,095,188
Other Securities				1.6		79,591,411
				5.8		293,977,144
Real Estate 1.3%
Other Securities				1.3		64,073,940
Retailing 5.3%
Lowe’s Cos., Inc.		425,045		0.6		29,268,599
Target Corp.		398,983		0.6		31,451,830
The Home Depot, Inc.		362,943		0.7		38,827,642
Other Securities				3.4		171,197,340
				5.3		270,745,411
Semiconductors & Semiconductor Equipment 2.3%
Intel Corp.		1,926,176		1.2		62,697,029
Other Securities				1.1		53,621,519
				2.3		116,318,548
Software & Services 6.9%
International Business Machines Corp.		414,501		1.4		70,999,876
Microsoft Corp.		2,046,528		2.0		99,543,122
Oracle Corp.		697,344		0.6		30,418,145
Other Securities				2.9		149,282,098
				6.9		350,243,241
Technology Hardware & Equipment 4.8%
Apple, Inc.		537,057		1.3		67,212,684
Cisco Systems, Inc.		1,509,051		0.9		43,505,940
Hewlett-Packard Co.		1,538,191		1.0		50,714,157
Other Securities				1.6		79,375,276
				4.8		240,808,057
Telecommunication Services 3.7%
AT&T, Inc.		3,168,331		2.1		109,750,986
Verizon Communications, Inc.		1,219,749		1.2		61,524,140
Other Securities				0.4		18,433,081
				3.7		189,708,207
Transportation 1.6%
Other Securities				1.6		81,835,601
Utilities 4.2%
Other Securities				4.2		215,251,570
Total Common Stock
(Cost $3,840,283,826)						5,034,584,197
Other Investment Companies 1.2% of net assets
Money Market Fund 0.7%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c)		35,395,345		0.7		35,395,345
Securities Lending Collateral 0.5%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c)		25,520,273		0.5		25,520,273
Total Other Investment Companies
(Cost $60,915,618)						60,915,618
End of Investments.

At 04/30/15 tax basis cost of the fund’s investments was $3,916,832,239 and the unrealized appreciation and depreciation were $1,223,985,283 and ($45,317,707), respectively, with a net unrealized appreciation of $1,178,667,576.

For the following notes, please refer to the complete schedule of portfolio holdings.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.
(b)	All or a portion of this security is on loan. Securities on loan were valued at $26,977,761. Non-cash collateral pledged to the fund for securities on loan amounted to $1,933,272.
(c)	The rate shown is the 7-day yield.

REIT — Real Estate Investment Trust

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Appreciation
	Contracts		($)		($)
Futures Contracts
S&P 500 Index, e-mini, Long, expires 06/19/15		365		37,939,925		120,130

See financial notes 17

 Schwab Fundamental US Large Company Index Fund

Condensed Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Common Stock1		$5,034,584,197		$—		$—		$5,034,584,197
Other Investment Companies1		60,915,618		—		—		60,915,618
Total		$5,095,499,815		$—		$—		$5,095,499,815
Other Financial Instruments
Futures Contracts2		$120,130		$—		$—		$120,130

1	As categorized in the complete schedule of portfolio holdings.
2	Futures contracts are not included in Investments in the schedule of condensed portfolio holdings and are valued at unrealized appreciation or depreciation.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

18 See financial notes

 Schwab Fundamental US Large Company Index Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated issuers, at value (cost $1,517,759)		$2,708,858
Investments in unaffiliated issuers, at value (cost $3,874,161,412) including securities on loan of $26,977,761		5,067,270,684
Collateral invested for securities on loan, at value (cost $25,520,273)	+	25,520,273
Total investments, at value (cost $3,901,199,444)		5,095,499,815
Cash		3,511
Deposit with broker for futures contracts		3,174,000
Receivables:
Fund shares sold		7,600,624
Dividends		5,232,851
Income from securities on loan		64,083
Prepaid expenses	+	15,935
Total assets		5,111,590,819
Liabilities
Collateral held for securities on loan		25,520,273
Payables:
Investment adviser and administrator fees		194,605
Shareholder service fees		127,677
Fund shares redeemed		3,909,127
Variation margin on futures contracts		366,825
Accrued expenses	+	971,281
Total liabilities		31,089,788
Net Assets
Total assets		5,111,590,819
Total liabilities	−	31,089,788
Net assets		$5,080,501,031
Net Assets by Source
Capital received from investors		3,812,717,897
Net investment income not yet distributed		34,245,508
Net realized capital gains		39,117,125
Net unrealized capital appreciation		1,194,420,501
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$5,080,501,031		328,945,716			$15.44

See financial notes 19

 Schwab Fundamental US Large Company Index Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated issuer		$12,782
Dividends received from unaffiliated issuers (net of foreign withholding taxes of $9,831)		59,816,679
Interest		232
Securities on loan	+	425,907
Total investment income		60,255,600
Expenses
Investment adviser and administrator fees		5,453,811
Shareholder service fees		1,824,919
Index fee		1,463,877
Transfer agent fees		168,921
Registration fees		78,245
Shareholder reports		74,242
Portfolio accounting fees		64,000
Custodian fees		50,307
Professional fees		27,424
Independent trustees’ fees		13,171
Interest expense		3,382
Other expenses	+	52,888
Total expenses		9,275,187
Expense reduction by CSIM and its affiliates	−	906,795
Net expenses	−	8,368,392
Net investment income		51,887,208
Realized and Unrealized Gains (Losses)
Net realized gains on affiliated issuer		162,765
Net realized gains on unaffiliated investments		54,141,103
Net realized gains on futures contracts	+	1,419,951
Net realized gains		55,723,819
Net change in unrealized appreciation (depreciation) on affiliated issuer		27,193
Net change in unrealized appreciation (depreciation) on unaffiliated investments		60,585,012
Net change in unrealized appreciation (depreciation) on futures contracts	+	(395,965	)
Net change in unrealized appreciation (depreciation)	+	60,216,240
Net realized and unrealized gains		115,940,059
Increase in net assets resulting from operations		$167,827,267

20 See financial notes

 Schwab Fundamental US Large Company Index Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$51,887,208			$70,401,991
Net realized gains		55,723,819			127,017,117
Net change in unrealized appreciation (depreciation)	+	60,216,240			337,814,424
Increase in net assets from operations		167,827,267			535,233,532
Distributions to Shareholders
Distributions from net investment income		(76,925,735	)		(47,960,089	)
Distributions from net realized gains	+	(114,155,826	)		—
Total distributions		($191,081,561	)		($47,960,089	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			63,578,300		$971,680,240			144,506,228		$2,105,376,361
Shares reinvested			7,976,908		122,684,844			2,075,077		29,051,072
Shares redeemed	+		(29,505,258	)	(455,358,107	)		(80,931,679	)	(1,177,384,046	)
Net transactions in fund shares			42,049,950		$639,006,977			65,649,626		$957,043,387
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			286,895,766		$4,464,748,348			221,246,140		$3,020,431,518
Total increase	+		42,049,950		615,752,683			65,649,626		1,444,316,830
End of period			328,945,716		$5,080,501,031			286,895,766		$4,464,748,348
Net investment income not yet distributed					$34,245,508					$59,284,035

See financial notes 21

Schwab Fundamental US Small Company Index Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		13.51			12.78			10.31			10.11			10.10			7.88
Income (loss) from investment operations:
Net investment income (loss)		0.10	1		0.14			0.16			0.15			0.11			0.09
Net realized and unrealized gains (losses)		0.64			1.23			3.35			0.88			0.47			2.19
Total from investment operations		0.74			1.37			3.51			1.03			0.58			2.28
Less distributions:
Distributions from net investment income		(0.16	)		(0.12	)		(0.20	)		(0.12	)		(0.10	)		(0.06	)
Distributions from net realized gains		(0.68	)		(0.52	)		(0.84	)		(0.71	)		(0.47	)		—
Total distributions		(0.84	)		(0.64	)		(1.04	)		(0.83	)		(0.57	)		(0.06	)
Net asset value at end of period		13.41			13.51			12.78			10.31			10.11			10.10
Total return (%)		5.66	2		10.99			37.55			11.37			5.55			29.07
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		0.35	3		0.35			0.35			0.32	4		0.35			0.35
Gross operating expenses		0.43	3		0.44			0.48			0.50			0.50			0.53
Net investment income (loss)		1.53	3		1.14			1.41			1.46			1.18			1.03
Portfolio turnover rate		10	2		29			27			92	5		35			41
Net assets, end of period ($ x 1,000,000)		1,523			1,208			849			619			563			412

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

⁴ The ratio of net operating expenses would have been 0.35%, if voluntary waiver by CSIM had not been included.

⁵ Portfolio turnover would have been 29%, if rebalancing trades had not been included due to a change in the fund’s index.

22 See financial notes

 Schwab Fundamental US Small Company Index Fund

Condensed Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows the fund’s 50 largest portfolio holdings in unaffiliated issuers, and any holdings exceeding 1% of the fund’s net assets as of the report date, and any affiliated issuers. The remaining securities held by the fund are grouped as “Other Securities” in each category. You can request a complete schedule of portfolio holdings as of the report date, free of charge, by calling Schwab Funds^® at 1-800-435-4000. This complete schedule, filed on the fund’s Form N-CSRS, is also available on the SEC’s website at www.sec.gov.

In addition, the fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15-20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	98	.8%	Common Stock		1,200,721,769		1,504,371,176
	0	.0%	Rights		266,856		266,364
	6	.0%	Other Investment Companies		91,605,348		91,605,348
	104	.8%	Total Investments		1,292,593,973		1,596,242,888
	(4	.8%)	Other Assets and Liabilities, Net				(73,293,251	)
	100	.0%	Net Assets				1,522,949,637

	Number		% of Net		Value
Security	of Shares		Assets		($)
Common Stock 98.8% of net assets
Automobiles & Components 1.0%
Other Securities				1.0		15,003,629
Banks 4.7%
Popular, Inc. *		107,000		0.2		3,470,010
Other Securities				4.5		67,618,249
				4.7		71,088,259
Capital Goods 11.3%
Allegion plc		57,800		0.2		3,534,470
Carlisle Cos., Inc.		40,600		0.3		3,917,900
Lennox International, Inc.		37,300		0.3		3,952,308
Spirit AeroSystems Holdings, Inc., Class A *		74,300		0.2		3,781,127
WABCO Holdings, Inc. *		27,200		0.2		3,385,040
Other Securities				10.1		153,610,471
				11.3		172,181,316
Commercial & Professional Supplies 5.2%
ABM Industries, Inc.		108,600		0.3		3,480,630
Copart, Inc. *		96,600		0.2		3,436,062
Towers Watson & Co., Class A		27,115		0.2		3,441,029
Verisk Analytics, Inc., Class A *		45,000		0.2		3,376,800
Other Securities				4.3		65,466,465
				5.2		79,200,986
Consumer Durables & Apparel 2.8%
Other Securities				2.8		43,227,711
Consumer Services 4.4%
Other Securities				4.4		66,332,080
Diversified Financials 3.3%
Federated Investors, Inc., Class B		112,500		0.3		3,870,000
SEI Investments Co.		77,500		0.2		3,538,650
TD Ameritrade Holding Corp.		94,800		0.2		3,436,500
Other Securities				2.6		40,030,203
				3.3		50,875,353
Energy 5.5%
Delek US Holdings, Inc.		98,500		0.2		3,636,620
McDermott International, Inc. *		736,100		0.3		3,864,525
Other Securities				5.0		76,426,951
				5.5		83,928,096
Food & Staples Retailing 0.7%
Other Securities				0.7		11,346,437
Food, Beverage & Tobacco 2.2%
Other Securities				2.2		33,012,644
Health Care Equipment & Services 5.4%
Centene Corp. *		71,300		0.3		4,419,887
Cerner Corp. *		56,900		0.3		4,085,989
Kindred Healthcare, Inc.		148,722		0.2		3,413,170
ResMed, Inc.		57,340		0.2		3,666,320
Other Securities				4.4		66,679,868
				5.4		82,265,234
Household & Personal Products 0.4%
Other Securities				0.4		5,743,071
Insurance 4.3%
Arthur J. Gallagher & Co.		71,600		0.2		3,424,628
Endurance Specialty Holdings Ltd.		62,000		0.2		3,743,560
First American Financial Corp.		115,900		0.3		4,032,161
Old Republic International Corp.		231,500		0.2		3,539,635
Other Securities				3.4		51,462,866
				4.3		66,202,850
Materials 5.8%
Cytec Industries, Inc.		61,000		0.2		3,372,690
Graphic Packaging Holding Co.		260,100		0.2		3,667,410
Martin Marietta Materials, Inc.		24,300		0.2		3,466,395
Other Securities				5.2		78,515,474
				5.8		89,021,969
Media 2.2%
Cinemark Holdings, Inc.		88,900		0.3		3,789,807
Other Securities				1.9		29,369,869
				2.2		33,159,676

See financial notes 23

 Schwab Fundamental US Small Company Index Fund

Condensed Portfolio Holdings (Unaudited) continued

	Number		% of Net		Value
Security	of Shares		Assets		($)
Pharmaceuticals, Biotechnology & Life Sciences 2.1%
Mallinckrodt plc *		35,521		0.3		4,020,267
Perrigo Co., plc		23,000		0.3		4,215,440
Other Securities				1.5		23,205,942
				2.1		31,441,649
Real Estate 8.9%
Corrections Corp. of America		100,628		0.2		3,702,104
Digital Realty Trust, Inc.		55,900		0.2		3,544,619
Jones Lang LaSalle, Inc.		23,700		0.3		3,935,622
Other Securities				8.2		124,571,551
				8.9		135,753,896
Retailing 5.8%
Chico’s FAS, Inc.		218,600		0.2		3,685,596
Netflix, Inc. *		6,420		0.2		3,572,730
Office Depot, Inc. *		522,458		0.3		4,817,063
The Men’s Wearhouse, Inc.		67,400		0.3		3,814,166
Other Securities				4.8		72,410,045
				5.8		88,299,600
Semiconductors & Semiconductor Equipment 3.5%
Cypress Semiconductor Corp. *		314,403		0.3		4,187,848
Other Securities				3.2		49,719,284
				3.5		53,907,132
Software & Services 5.8%
Akamai Technologies, Inc. *		55,000		0.3		4,057,900
Convergys Corp.		169,900		0.2		3,853,332
DST Systems, Inc.		34,300		0.3		3,947,244
Global Payments, Inc.		40,400		0.3		4,051,312
VeriSign, Inc. *		59,400		0.2		3,772,494
Other Securities				4.5		68,393,877
				5.8		88,076,159
Technology Hardware & Equipment 4.9%
Other Securities				4.9		74,055,240
Telecommunication Services 1.1%
Level 3 Communications, Inc. *		82,530		0.3		4,616,729
Other Securities				0.8		11,342,970
				1.1		15,959,699
Transportation 3.7%
Alaska Air Group, Inc.		59,600		0.2		3,817,976
JetBlue Airways Corp. *		200,500		0.3		4,116,265
SkyWest, Inc.		273,600		0.2		3,734,640
Other Securities				3.0		45,407,409
				3.7		57,076,290
Utilities 3.8%
Hawaiian Electric Industries, Inc.		111,700		0.2		3,496,210
WGL Holdings, Inc.		63,800		0.3		3,509,638
Other Securities				3.3		50,206,352
				3.8		57,212,200
Total Common Stock
(Cost $1,200,721,769)						1,504,371,176
Rights 0.0% of net assets
Technology Hardware & Equipment 0.0%
Other Securities				0.0		—
Telecommunication Services 0.0%
Other Securities				0.0		266,364
Total Rights
(Cost $266,856)						266,364
Other Investment Companies 6.0% of net assets
Money Market Fund 3.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d)		45,483,083		3.0		45,483,083
Securities Lending Collateral 3.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d)		46,122,265		3.0		46,122,265
Total Other Investment Companies
(Cost $91,605,348)						91,605,348
End of Investments.

At 04/30/15 tax basis cost of the fund’s investments was $1,298,939,468 and the unrealized appreciation and depreciation were $342,303,709 and ($45,000,289), respectively, with a net unrealized appreciation of $297,303,420.

For the following notes, please refer to the complete schedule of portfolio holdings.

*	Non-income producing security.
(a)	All or a portion of this security is on loan. Securities on loan were valued at $45,023,481. Non-cash collateral pledged to the fund for securities on loan amounted to $1,794,525.
(b)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(c)	Illiquid security. At the period end, the value of these amounted to $266,364 or 0.0% of net assets.
(d)	The rate shown is the 7-day yield.

CVR —	Contingent Value Rights
REIT —	Real Estate Investment Trust

24 See financial notes

 Schwab Fundamental US Small Company Index Fund

Condensed Portfolio Holdings (Unaudited) continued

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Depreciation
	Contracts		($)		($)
Futures Contracts
Russell 2000 Index, mini, Long, expires 06/19/15		120		14,596,800		(357,438	)

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

Assets Valuation Input

	Quoted Prices in					Significant
	Active Markets for			Other Significant		Unobservable
	Identical Assets			Observable Inputs		Inputs
Description	(Level 1)			(Level 2)		(Level 3)		Total
Common Stock1		$1,504,371,176			$—		$—		$1,504,371,176
Rights1		—			—		266,364		266,364
Other Investment Companies		91,605,348			—		—		91,605,348
Total		$1,595,976,524			$—		$266,364		$1,596,242,888
Liabilities Valuation Input
Other Financial Instruments
Futures Contracts2		($357,438	)		$—		$—		($357,438	)

1	As categorized in the complete schedule of portfolio holdings.
2	Futures contracts are not included in Investments in the schedule of condensed portfolio holdings and are valued at unrealized appreciation or depreciation.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Balance				Change in										Balance
	as of		Realized		Unrealized						Gross		Gross		as of
	October 31,		Gains		Appreciation		Gross		Gross		Transfers		Transfers		April 30,
Investments in Securities	2014		(Losses)		(Depreciation)		Purchases		Sales		in		out		2015
Rights		$266,364		$—		$—		$—		$—		$—		$—		$266,364
Total		$266,364		$—		$—		$—		$—		$—		$—		$266,364

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 25

 Schwab Fundamental US Small Company Index Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments, at value (cost $1,246,471,708) including securities on loan of $45,023,481		$1,550,120,623
Collateral invested for securities on loan, at value (cost $46,122,265)	+	46,122,265
Total investments, at value (cost $1,292,593,973)		1,596,242,888
Foreign currency, at value (cost $34)		26
Cash		4,733
Deposit with broker for futures contracts		1,300,500
Receivables:
Fund shares sold		5,210,123
Dividends		576,881
Income from securities on loan		220,430
Prepaid expenses	+	7,103
Total assets		1,603,562,684
Liabilities
Collateral held for securities on loan		46,122,265
Payables:
Investments bought		33,176,891
Investment adviser and administrator fees		52,906
Shareholder service fees		22,577
Fund shares redeemed		656,853
Variation margin on futures contracts		241,718
Accrued expenses	+	339,837
Total liabilities		80,613,047
Net Assets
Total assets		1,603,562,684
Total liabilities	−	80,613,047
Net assets		$1,522,949,637
Net Assets by Source
Capital received from investors		1,192,989,561
Net investment income not yet distributed		5,563,380
Net realized capital gains		21,105,227
Net unrealized capital appreciation		303,291,469
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$1,522,949,637		113,600,421			$13.41

26 See financial notes

 Schwab Fundamental US Small Company Index Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends (net of foreign withholding taxes of $5,282)		$11,731,756
Interest		72
Securities on loan	+	883,503
Total investment income		12,615,331
Expenses
Investment adviser and administrator fees		1,673,227
Shareholder service fees		593,925
Index fee		410,618
Transfer agent fees		43,651
Portfolio accounting fees		37,678
Shareholder reports		28,134
Registration fees		25,075
Professional fees		21,868
Custodian fees		19,194
Independent trustees’ fees		5,860
Interest expense		535
Other expenses	+	12,425
Total expenses		2,872,190
Expense reduction by CSIM and its affiliates	−	525,269
Net expenses	−	2,346,921
Net investment income		10,268,410
Realized and Unrealized Gains (Losses)
Net realized gains on investments		24,997,422
Net realized gains on futures contracts		1,929,139
Net realized losses on foreign currency transactions	+	(317	)
Net realized gains		26,926,244
Net change in unrealized appreciation (depreciation) on investments		38,403,801
Net change in unrealized appreciation (depreciation) on futures contracts		(421,400	)
Net change in unrealized appreciation (depreciation) on foreign currency translations	+	(3	)
Net change in unrealized appreciation (depreciation)	+	37,982,398
Net realized and unrealized gains		64,908,642
Increase in net assets resulting from operations		$75,177,052

See financial notes 27

 Schwab Fundamental US Small Company Index Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$10,268,410			$12,487,752
Net realized gains		26,926,244			58,394,089
Net change in unrealized appreciation (depreciation)	+	37,982,398			37,889,684
Increase in net assets from operations		75,177,052			108,771,525
Distributions to Shareholders
Distributions from net investment income		(14,333,166	)		(8,210,484	)
Distributions from net realized gains	+	(60,933,871	)		(37,238,379	)
Total distributions		($75,267,037	)		($45,448,863	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			29,097,079		$382,450,092			40,867,612		$529,827,506
Shares reinvested			3,422,676		44,597,473			1,787,741		22,900,966
Shares redeemed	+		(8,330,924	)	(111,523,857	)		(19,718,745	)	(257,947,641	)
Net transactions in fund shares			24,188,831		$315,523,708			22,936,608		$294,780,831
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			89,411,590		$1,207,515,914			66,474,982		$849,412,421
Total increase	+		24,188,831		315,433,723			22,936,608		358,103,493
End of period			113,600,421		$1,522,949,637			89,411,590		$1,207,515,914
Net investment income not yet distributed					$5,563,380					$9,628,136

28 See financial notes

Schwab Fundamental International Large Company Index Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		8.84			9.05			7.16			7.26			8.09			7.69
Income (loss) from investment operations:
Net investment income (loss)		0.12	1		0.30			0.23			0.22			0.23			0.21
Net realized and unrealized gains (losses)		0.26			(0.26	)		1.87			(0.08	)2		(0.85	)		0.41
Total from investment operations		0.38			0.04			2.10			0.14			(0.62	)		0.62
Less distributions:
Distributions from net investment income		(0.30	)		(0.25	)		(0.21	)		(0.24	)		(0.21	)		(0.22	)
Net asset value at end of period		8.92			8.84			9.05			7.16			7.26			8.09
Total return (%)		4.49	3		0.39			30.12			2.24			(7.88	)		8.27
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		0.35	4		0.35			0.34	5		0.31	5		0.35			0.35
Gross operating expenses		0.47	4		0.48			0.52			0.56			0.57			0.61
Net investment income (loss)		2.89	4		3.52			2.95			3.58			3.24			2.70
Portfolio turnover rate		4	3		8			22			61	6		35			65
Net assets, end of period ($ x 1,000,000)		1,079			908			646			501			372			301

* Unaudited.

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 fund transactions in relation to fluctuating market values.

³ Not annualized.

⁴ Annualized.

⁵ The ratio of net operating expenses would have been 0.35%, if voluntary waiver by CSIM had not been included.

⁶ Portfolio turnover would have been 37%, if rebalancing trades had not been included due to a change in the fund’s index.

See financial notes 29

 Schwab Fundamental International Large Company Index Fund

Condensed Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows the fund’s 50 largest portfolio holdings in unaffiliated issuers, and any holdings exceeding 1% of the fund’s net assets as of the report date, and any affiliated issuers. The remaining securities held by the fund are grouped as “Other Securities” in each category. You can request a complete schedule of portfolio holdings as of the report date, free of charge, by calling Schwab Funds^® at 1-800-435-4000. This complete schedule, filed on the fund’s Form N-CSRS, is also available on the SEC’s website at www.sec.gov.

In addition, the fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15-20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	98	.7%	Common Stock		949,629,638		1,065,172,105
	0	.5%	Preferred Stock		3,911,285		5,270,579
	0	.0%	Rights		246,220		254,056
	1	.9%	Other Investment Company		20,276,823		20,276,823
	0	.4%	Short-Term Investment		4,326,123		4,326,124
	101	.5%	Total Investments		978,390,089		1,095,299,687
	(1	.5%)	Other Assets and Liabilities, Net				(16,429,676	)
	100	.0%	Net Assets				1,078,870,011

	Number		% of Net		Value
Security	of Shares		Assets		($)
Common Stock 98.7% of net assets
Australia 5.3%
BHP Billiton Ltd.		293,715		0.7		7,500,415
Commonwealth Bank of Australia		72,371		0.4		5,065,750
National Australia Bank Ltd.		143,363		0.4		4,151,128
Wesfarmers Ltd.		117,162		0.4		4,038,492
Westpac Banking Corp.		150,032		0.4		4,310,520
Other Securities				3.0		32,353,132
				5.3		57,419,437
Austria 0.4%
Other Securities				0.4		4,493,034
Belgium 0.9%
Other Securities				0.9		10,030,152
Canada 6.6%
Royal Bank of Canada		66,514		0.4		4,416,441
Other Securities				6.2		66,714,553
				6.6		71,130,994
Denmark 0.8%
Other Securities				0.8		9,015,024
Finland 1.0%
Other Securities				1.0		10,515,208
France 10.5%
AXA S.A.		160,543		0.4		4,059,464
BNP Paribas S.A.		92,533		0.5		5,843,576
GDF Suez		275,757		0.5		5,610,659
Orange S.A.		504,840		0.8		8,315,378
Sanofi		83,173		0.8		8,466,214
Total S.A.		327,959		1.6		17,758,964
Vivendi S.A.		194,779		0.5		4,882,853
Other Securities				5.4		58,766,277
				10.5		113,703,385
Germany 8.4%
Allianz SE - Reg’d		31,990		0.5		5,445,166
BASF SE		88,226		0.8		8,765,078
Bayer AG - Reg’d		37,684		0.5		5,423,956
Daimler AG - Reg’d		85,039		0.7		8,176,217
Deutsche Telekom AG - Reg’d		446,491		0.8		8,206,795
E.ON SE		473,112		0.7		7,365,409
Siemens AG - Reg’d		61,369		0.6		6,675,836
Other Securities				3.8		40,815,661
				8.4		90,874,118
Hong Kong 1.1%
Other Securities				1.1		12,072,979
Ireland 0.7%
Other Securities				0.7		6,913,721
Israel 0.4%
Other Securities				0.4		4,100,364
Italy 3.8%
Enel S.p.A.		1,242,651		0.5		5,890,090
Eni S.p.A.		554,490		1.0		10,638,362
UniCredit S.p.A.		634,468		0.4		4,554,292
Other Securities				1.9		20,157,295
				3.8		41,240,039
Japan 22.0%
Canon, Inc.		132,700		0.4		4,731,381
Hitachi Ltd.		595,000		0.4		4,059,627
Honda Motor Co., Ltd.		167,700		0.5		5,622,203
Mitsubishi UFJ Financial Group, Inc.		759,534		0.5		5,395,995
Nippon Telegraph & Telephone Corp.		80,404		0.5		5,429,277
Toyota Motor Corp.		151,100		1.0		10,517,938
Other Securities				18.7		201,982,542
				22.0		237,738,963
Luxembourg 0.5%
Other Securities				0.5		5,521,319

30 See financial notes

 Schwab Fundamental International Large Company Index Fund

Condensed Portfolio Holdings (Unaudited) continued

	Number		% of Net		Value
Security	of Shares		Assets		($)
Netherlands 5.4%
Royal Dutch Shell plc, A Shares		653,394		1.9		20,717,286
Royal Dutch Shell plc, B Shares		408,749		1.2		13,086,422
Other Securities				2.3		24,007,527
				5.4		57,811,235
New Zealand 0.1%
Other Securities				0.1		1,413,639
Norway 0.9%
Statoil A.S.A.		227,366		0.4		4,820,241
Other Securities				0.5		5,263,987
				0.9		10,084,228
Portugal 0.2%
Other Securities				0.2		2,168,932
Singapore 0.9%
Other Securities				0.9		9,057,375
Spain 4.2%
Banco Bilbao Vizcaya Argentaria S.A.		503,941		0.5		5,063,638
Banco Santander S.A.		1,541,410		1.1		11,653,935
Telefonica S.A.		761,869		1.1		11,595,981
Other Securities				1.5		16,657,143
				4.2		44,970,697
Sweden 2.3%
Other Securities				2.3		24,953,622
Switzerland 5.6%
Nestle S.A. - Reg’d		148,274		1.1		11,503,722
Novartis AG - Reg’d		98,498		0.9		10,053,899
Roche Holding AG		24,522		0.7		7,017,095
Other Securities				2.9		31,408,185
				5.6		59,982,901
United Kingdom 16.7%
AstraZeneca plc		111,953		0.7		7,682,953
Barclays plc		1,394,904		0.5		5,457,492
BG Group plc		226,352		0.4		4,100,036
BHP Billiton plc		195,556		0.4		4,700,474
BP plc		3,506,754		2.4		25,292,094
British American Tobacco plc		101,173		0.5		5,558,806
GlaxoSmithKline plc		382,909		0.8		8,843,921
HSBC Holdings plc		1,403,919		1.3		14,024,445
Rio Tinto plc		110,301		0.5		4,936,086
Tesco plc		1,639,772		0.5		5,527,125
Vodafone Group plc		2,941,943		1.0		10,365,071
Other Securities				7.7		83,472,236
				16.7		179,960,739
Total Common Stock
(Cost $949,629,638)						1,065,172,105
Preferred Stock 0.5% of net assets
Germany 0.5%
Other Securities				0.5		4,981,178
Italy 0.0%
Other Securities				0.0		265,472
United Kingdom 0.0%
Other Securities				0.0		23,929
Total Preferred Stock
(Cost $3,911,285)						5,270,579
Rights 0.0% of net assets
Spain 0.0%
Banks 0.0%
Other Securities				0.0		254,056
Total Rights
(Cost $246,220)						254,056
Other Investment Company 1.9% of net assets
United States 1.9%
Securities Lending Collateral 1.9%
Wells Fargo Advantage Government Money Market Fund, Institutional Class 0.01% (d)		20,276,823		1.9		20,276,823
Total Other Investment Company
(Cost $20,276,823)						20,276,823
	Face
Security	Amount		% of Net		Value
Rate, Maturity Date	($)		Assets		($)
Short-Term Investment 0.4% of net assets
Time Deposit 0.4%
Other Securities				0.4		4,326,124
Total Short-Term Investment
(Cost $4,326,123)						4,326,124
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $995,227,432 unrealized appreciation and depreciation were $145,776,237 and ($45,703,982), respectively, with a net unrealized appreciation of $100,072,255.

See financial notes 31

 Schwab Fundamental International Large Company Index Fund

Condensed Portfolio Holdings (Unaudited) continued

At 04/30/15, the values of certain foreign securities held by the fund aggregating $986,598,141 were adjusted from their closing market values in accordance with international fair valuation procedures approved by the fund’s Board of Trustees. (See financial note 2(a) for additional information)

For the following notes, please refer to the complete schedule of portfolio holdings.

*	Non-income producing security.
(a)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(b)	Illiquid security. At the period end, the value of these amounted to $251,730 or 0.0% of net assets.
(c)	All or a portion of this security is on loan. Securities on loan were valued at $19,034,485.
(d)	The rate shown is the 7-day yield.

CVA —	Dutch Certificate
Reg’d —	Registered
REIT —	Real Estate Investment Trust
RSP —	Risparmio (Convertible Savings Shares)
SDR —	Swedish Depositary Receipt

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Depreciation
	Contracts		($)		($)
Futures Contracts
MSCI EAFE, e-mini, Long, expires 06/19/15		35		3,314,850		(19,366	)

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

Assets Valuation Input

	Quoted Prices in					Significant
	Active Markets for			Other Significant		Unobservable
	Identical Assets			Observable Inputs		Inputs
Description	(Level 1)			(Level 2)		(Level 3)		Total
Common Stock1		$—			$422,720,135		$—		$422,720,135
Austria		301,899			4,191,135		—		4,493,034
Canada		71,130,994			—		—		71,130,994
France		342,647			113,360,738		—		113,703,385
Germany		382,449			90,491,669		—		90,874,118
Hong Kong		1,753,398			10,319,581		—		12,072,979
Ireland		1,541,400			5,372,321		—		6,913,721
Netherlands		223,512			57,359,922		227,801		57,811,235
New Zealand		—			1,074,683		338,956		1,413,639
Norway		116,935			9,967,293		—		10,084,228
Singapore		861,609			8,195,766		—		9,057,375
Sweden		718,137			24,235,485		—		24,953,622
Switzerland		2,042,256			57,940,645		—		59,982,901
United Kingdom		3,838,621			176,122,118		—		179,960,739
Preferred Stock1		—			5,246,650		—		5,246,650
United Kingdom		—			—		23,929		23,929
Rights
Spain		2,891			—		251,165		254,056
Other Investment Company1		20,276,823			—		—		20,276,823
Short-Term Investments1		—			4,326,124		—		4,326,124
Total		$103,533,571			$990,924,265		$841,851		$1,095,299,687
Liabilities Valuation Input
Other Financial Instruments
Futures Contracts2		($19,366	)		$—		$—		($19,366	)

1	As categorized in the complete schedule of portfolio holdings.
2	Futures contracts are not included in Investments in the schedule of condensed portfolio holdings and are valued at unrealized appreciation or depreciation.

32 See financial notes

 Schwab Fundamental International Large Company Index Fund

Condensed Portfolio Holdings (Unaudited) continued

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Balance				Change in												Balance
	as of		Realized		Unrealized								Gross		Gross		as of
	October 31,		Gains		Appreciation			Gross		Gross			Transfers		Transfers		April 30,
Investments in Securities	2014		(Losses)		(Depreciation)			Purchases		Sales			in		out		2015
Common Stock
Netherlands		$—		$—		($21,426	)		$—		$—			$249,227		$—		$227,801
New Zealand		—		—		32,911			151,397		—			154,648		—		338,956
Preferred Stock
United Kingdom		11,749		—		523			23,445		(11,788	)		—		—		23,929
Rights
Spain		—		—		7,863			243,304		(2	)		—		—		251,165
Total		$11,749		$—		$19,871			$418,146		($11,790	)		$403,875		$—		$841,851

All net realized and change in unrealized gains (losses) in the table above are reflected on the accompanying Statement of Operations. The change in net unrealized appreciation (depreciation) for Level 3 investments held by the fund at April 30, 2015 was $183,989.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were security transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015. The transfers in the amount of $3,800,914 and $2,888,103 from Level 1 to Level 2 and from Level 2 to Level 1, respectively, were primarily due to the use of international fair valuation by the fund. The transfers into Level 3 from Level 1 or Level 2 were due to the result of fair valued securities for which no quoted value was available.

See financial notes 33

 Schwab Fundamental International Large Company Index Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments, at value (cost $958,113,266) including securities on loan of $19,034,485		$1,075,022,864
Collateral invested for securities on loan, at value (cost $20,276,823)	+	20,276,823
Total investments, at value (cost $978,390,089)		1,095,299,687
Foreign currency, at value (cost $2,300)		2,302
Deposit with broker for futures contracts		594,000
Receivables:
Investments sold		38
Dividends		3,427,573
Fund shares sold		1,475,915
Foreign tax reclaims		670,042
Income from securities on loan		126,569
Prepaid expenses	+	5,064
Total assets		1,101,601,190
Liabilities
Collateral held for securities on loan		20,276,823
Payables:
Investments bought		87,444
Investment adviser and administrator fees		35,792
Shareholder service fees		19,446
Fund shares redeemed		1,986,875
Variation margin on futures contracts		56,952
Accrued expenses	+	267,847
Total liabilities		22,731,179
Net Assets
Total assets		1,101,601,190
Total liabilities	−	22,731,179
Net assets		$1,078,870,011
Net Assets by Source
Capital received from investors		1,061,271,095
Net investment income not yet distributed		9,042,252
Net realized capital losses		(108,344,695	)
Net unrealized capital appreciation		116,901,359
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$1,078,870,011		120,954,442			$8.92

34 See financial notes

 Schwab Fundamental International Large Company Index Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends (net of foreign withholding taxes of $1,416,904)		$15,223,206
Interest		1,943
Securities on loan	+	298,189
Total investment income		15,523,338
Expenses
Investment adviser and administrator fees		1,253,284
Shareholder service fees		397,361
Index fee		291,074
Custodian fees		100,639
Transfer agent fees		52,641
Portfolio accounting fees		49,092
Professional fees		24,327
Registration fees		24,133
Shareholder reports		17,096
Independent trustees’ fees		5,201
Interest expense		669
Other expenses	+	18,356
Total expenses		2,233,873
Expense reduction by CSIM and its affiliates	−	554,911
Net expenses	−	1,678,962
Net investment income		13,844,376
Realized and Unrealized Gains (Losses)
Net realized gains on investments		8,249,900
Net realized gains on futures contracts		890,068
Net realized losses on foreign currency transactions	+	(332,819	)
Net realized gains		8,807,149
Net change in unrealized appreciation (depreciation) on investments		29,313,880
Net change in unrealized appreciation (depreciation) on futures contracts		(111,186	)
Net change in unrealized appreciation (depreciation) on foreign currency translations	+	87,908
Net change in unrealized appreciation (depreciation)	+	29,290,602
Net realized and unrealized gains		38,097,751
Increase in net assets resulting from operations		$51,942,127

See financial notes 35

 Schwab Fundamental International Large Company Index Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$13,844,376			$29,342,366
Net realized gains		8,807,149			19,760,200
Net change in unrealized appreciation (depreciation)	+	29,290,602			(59,586,078	)
Increase (Decrease) in net assets from operations		51,942,127			(10,483,512	)
Distributions to Shareholders
Distributions from net investment income		($30,718,378	)		($17,955,621	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			34,614,121		$288,482,141			49,079,319		$452,063,298
Shares reinvested			2,428,390		20,277,055			1,447,761		12,841,641
Shares redeemed	+		(18,782,283	)	(159,169,245	)		(19,204,938	)	(174,204,252	)
Net transactions in fund shares			18,260,228		$149,589,951			31,322,142		$290,700,687
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			102,694,214		$908,056,311			71,372,072		$645,794,757
Total increase	+		18,260,228		170,813,700			31,322,142		262,261,554
End of period			120,954,442		$1,078,870,011			102,694,214		$908,056,311
Net investment income not yet distributed					$9,042,252					$25,916,254

36 See financial notes

Schwab Fundamental International Small Company Index Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		11.15			11.47			9.13			9.53			9.96			9.00
Income (loss) from investment operations:
Net investment income (loss)1		0.12			0.22			0.22			0.21			0.24			0.16
Net realized and unrealized gains (losses)		0.71			(0.23	)		2.42			0.03			(0.40	)		1.09
Total from investment operations		0.83			(0.01	)		2.64			0.24			(0.16	)		1.25
Less distributions:
Distributions from net investment income		(0.19	)		(0.31	)		(0.30	)		(0.25	)		(0.27	)		(0.29	)
Distributions from net realized gains		(0.05	)		—			—			(0.39	)		—			—
Total distributions		(0.24	)		(0.31	)		(0.30	)		(0.64	)		(0.27	)		(0.29	)
Net asset value at end of period		11.74			11.15			11.47			9.13			9.53			9.96
Total return (%)		7.58	2		(0.07	)		29.75			3.13			(1.76	)		14.32
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		0.49	3		0.49			0.47	4,5		0.46	6,7		0.54			0.55
Gross operating expenses		0.72	3		0.80			0.93			0.92	7		0.99			1.07
Net investment income (loss)		2.10	3		1.87			2.21			2.42			2.29			1.77
Portfolio turnover rate		17	2		41			29			89	8		63			63
Net assets, end of period ($ x 1,000,000)		398			275			150			90			93			74

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

⁴ Effective June 11, 2013, the net operating expense limitation was lowered. The ratio presented for period ended 10/31/13 is a blended ratio.

⁵ The ratio of net operating expenses would have been 0.52%, if voluntary waiver by CSIM had not been included.

⁶ The ratio of net operating expenses would have been 0.51%, if voluntary waiver by CSIM had not been included.

⁷ The net operating and gross operating expense ratios would have been 0.50% and 0.97%, respectively, if vendor payments had not been included.

⁸ Portfolio turnover would have been 48%, if rebalancing trades had not been included due to a change in the fund’s index.

See financial notes 37

 Schwab Fundamental International Small Company Index Fund

Condensed Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows the fund’s 50 largest portfolio holdings in unaffiliated issuers, and any holdings exceeding 1% of the fund’s net assets as of the report date, and any affiliated issuers. The remaining securities held by the fund are grouped as “Other Securities” in each category. You can request a complete schedule of portfolio holdings as of the report date, free of charge, by calling Schwab Funds^® at 1-800-435-4000. This complete schedule, filed on the fund’s Form N-CSRS, is also available on the SEC’s website at www.sec.gov.

In addition, the fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15-20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	98	.0%	Common Stock		347,261,417		390,257,429
	0	.5%	Preferred Stock		1,805,239		2,090,623
	0	.0%	Rights		181		2,134
	3	.3%	Other Investment Companies		12,986,712		13,208,938
	0	.4%	Short-Term Investments		1,356,495		1,356,495
	102	.2%	Total Investments		363,410,044		406,915,619
	(2	.2)%	Other Assets and Liabilities, Net				(8,859,141	)
	100	.0%	Net Assets				398,056,478

	Number		% of Net		Value
Security	of Shares		Assets		($)
Common Stock 98.0% of net assets
Australia 5.4%
APA Group		86,922		0.1		657,390
OZ Minerals Ltd.		179,706		0.2		661,566
Other Securities				5.1		20,308,781
				5.4		21,627,737
Austria 0.7%
Other Securities				0.7		2,605,291
Belgium 1.4%
Other Securities				1.4		5,625,276
Canada 8.0%
Agnico-Eagle Mines Ltd.		21,767		0.2		658,873
Other Securities				7.8		31,007,951
				8.0		31,666,824
Denmark 1.3%
Other Securities				1.3		5,266,344
Finland 1.4%
Other Securities				1.4		5,522,578
France 4.6%
Klepierre		22,019		0.3		1,068,046
Natixis S.A.		89,341		0.2		739,517
Societe BIC S.A.		3,769		0.1		645,595
Other Securities				4.0		15,970,481
				4.6		18,423,639
Germany 3.4%
Symrise AG		10,541		0.1		639,136
Telefonica Deutschland Holding AG *		106,249		0.2		658,490
Other Securities				3.1		12,194,799
				3.4		13,492,425
Greece 0.0%
Other Securities				0.0		—
Hong Kong 2.8%
Cathay Pacific Airways Ltd.		265,000		0.2		682,388
Hongkong Land Holdings Ltd.		89,600		0.2		725,760
MTR Corp., Ltd.		138,500		0.1		680,688
Wheelock & Co., Ltd.		124,000		0.2		698,235
Other Securities				2.1		8,257,040
				2.8		11,044,111
Ireland 1.0%
Other Securities				1.0		3,977,797
Israel 1.1%
Check Point Software Technologies Ltd. *		8,696		0.2		725,942
Other Securities				0.9		3,474,365
				1.1		4,200,307
Italy 2.4%
Banca Popolare Di Milano Scarl *		721,354		0.2		743,303
Other Securities				2.2		9,010,966
				2.4		9,754,269
Japan 38.4%
Alps Electric Co., Ltd.		33,300		0.2		827,186
Aoyama Trading Co., Ltd.		19,100		0.2		660,634
Calsonic Kansei Corp.		90,000		0.1		656,070
Casio Computer Co., Ltd.		34,700		0.2		701,576
DCM Holdings Co., Ltd.		80,200		0.2		668,835
Dena Co., Ltd.		41,886		0.2		836,716
Don Quijote Holdings Co., Ltd.		8,400		0.1		640,873
Fujikura Ltd.		148,000		0.2		704,902
Fukuoka Financial Group, Inc.		123,000		0.2		706,665
Hitachi High-Technologies Corp.		22,700		0.2		657,838
IT Holdings Corp.		35,400		0.2		697,093
Keio Corp.		85,000		0.1		656,507
Kikkoman Corp.		27,000		0.2		770,009
Koito Manufacturing Co., Ltd.		20,800		0.2		727,840
Matsumotokiyoshi Holdings Co., Ltd.		17,800		0.1		648,116
NGK Insulators Ltd.		29,000		0.1		651,448
NOK Corp.		23,900		0.2		751,065
Nomura Research Institute Ltd.		18,600		0.2		734,003

38 See financial notes

 Schwab Fundamental International Small Company Index Fund

Condensed Portfolio Holdings (Unaudited) continued

	Number		% of Net		Value
Security	of Shares		Assets		($)
NTN Corp.		129,000		0.2		704,150
Toyoda Gosei Co., Ltd.		28,800		0.2		666,333
Toyota Boshoku Corp.		44,600		0.2		662,176
Yamaha Corp.		40,200		0.2		730,521
Other Securities				34.5		137,541,893
				38.4		153,002,449
Luxembourg 0.5%
Other Securities				0.5		1,859,294
Netherlands 1.9%
Other Securities				1.9		7,753,150
New Zealand 0.8%
Other Securities				0.8		3,035,973
Norway 0.9%
Other Securities				0.9		3,753,968
Portugal 0.5%
Jeronimo Martins, SGPS, S.A.		46,707		0.2		681,334
Other Securities				0.3		1,157,541
				0.5		1,838,875
Republic of Korea 0.0%
Other Securities				0.0		5,442
Singapore 1.7%
Other Securities				1.7		6,948,545
Spain 2.0%
Other Securities				2.0		7,769,330
Sweden 2.1%
Other Securities				2.1		8,398,076
Switzerland 2.8%
Actelion Ltd. - Reg’d *		5,076		0.1		667,904
Other Securities				2.7		10,682,054
				2.8		11,349,958
United Kingdom 12.9%
Admiral Group plc		28,112		0.2		670,349
Debenhams plc		522,380		0.2		717,596
Dixons Carphone plc		232,390		0.4		1,508,171
DS Smith plc		123,914		0.2		662,562
Evraz plc		291,495		0.2		846,534
National Express Group plc		146,728		0.1		646,188
Persimmon plc		24,697		0.1		641,241
Provident Financial plc		15,439		0.2		712,146
The British Land Co., plc		52,475		0.2		668,338
Other Securities				11.1		44,262,646
				12.9		51,335,771
Total Common Stock
(Cost $347,261,417)						390,257,429
Preferred Stock 0.5% of net assets
Germany 0.3%
Other Securities				0.3		1,383,002
Italy 0.1%
Other Securities				0.1		287,119
Spain 0.0%
Other Securities				0.0		153,078
Sweden 0.1%
Other Securities				0.1		267,424
Total Preferred Stock
(Cost $1,805,239)						2,090,623
Rights 0.0% of net assets
Australia 0.0%
Other Securities				0.0		1,947
Canada 0.0%
Other Securities				0.0		187
Total Rights
(Cost $181)						2,134
						��
Other Investment Companies 3.3% of net assets
United States 3.3%
Equity Fund 0.8%
iShares MSCI EAFE Small Cap ETF (a)		65,000		0.8		3,353,350
Securities Lending Collateral 2.5%
Wells Fargo Advantage Government Money Market Fund, Institutional Class 0.01% (d)		9,855,588		2.5		9,855,588
				3.3		13,208,938
Total Other Investment Companies
(Cost $12,986,712)						13,208,938
	Face
Security	Amount		% of Net		Value
Rate, Maturity Date	($)		Assets		($)
Short-Term Investments 0.4% of net assets
Time Deposits 0.4%
JPMorgan Chase Bank		791,565		0.2		791,565

See financial notes 39

 Schwab Fundamental International Small Company Index Fund

Condensed Portfolio Holdings (Unaudited) continued

	Face
Security	Amount	% of Net		Value
Rate, Maturity Date	($)	Assets		($)
Other Securities			0.2		564,930
			0.4		1,356,495
Total Short-Term Investments
(Cost $1,356,495)					1,356,495
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $367,861,318 and the unrealized appreciation and depreciation were $53,928,396 and ($14,874,096), respectively, with a net unrealized appreciation of $39,054,300.

At 04/30/15, the values of certain foreign securities held by the fund aggregating $332,679,865 were adjusted from their closing market values in accordance with international fair valuation procedures approved by the fund’s Board of Trustees. (See financial note 2(a) for additional information)

For the following notes, please refer to the complete schedule of portfolio holdings.

*	Non-income producing security.
(a)	All or a portion of this security is on loan. Securities on loan were valued at $9,265,659.
(b)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(c)	Illiquid security. At the period end, the value of these amounted to $5,442 or 0.0% of net assets.
(d)	The rate shown is the 7-day yield.

ADR —	American Depositary Receipt
CDI —	CHESS Depositary Interest
CVA —	Dutch Certificate
ETF —	Exchange Traded Fund
GDR —	Global Depositary Receipt
Reg’d —	Registered
REIT —	Real Estate Investment Trust
RSP —	Risparmio (Convertible Savings Shares)
SDR —	Swedish Depositary Receipt

40 See financial notes

 Schwab Fundamental International Small Company Index Fund

Condensed Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Common Stock1		$—		$13,492,425		$—		$13,492,425
Australia		371,698		21,229,617		26,422		21,627,737
Austria		1,331,460		1,273,831		—		2,605,291
Belgium		1,974,511		3,650,765		—		5,625,276
Canada		31,545,370		121,454		—		31,666,824
Denmark		594,697		4,671,647		—		5,266,344
Finland		616,227		4,906,351		—		5,522,578
France		3,530,737		14,892,902		—		18,423,639
Greece		—		—		—		—
Hong Kong		1,667,212		9,376,899		—		11,044,111
Ireland		1,180,434		2,797,363		—		3,977,797
Israel		725,942		3,474,365		—		4,200,307
Italy		1,168,884		8,585,385		—		9,754,269
Japan		157,079		152,845,370		—		153,002,449
Luxembourg		799,153		1,060,141		—		1,859,294
Netherlands		2,419,886		5,333,264		—		7,753,150
New Zealand		822,039		2,213,934		—		3,035,973
Norway		639,273		3,114,695		—		3,753,968
Portugal		248,076		1,590,799		—		1,838,875
Republic of Korea		—		—		5,442		5,442
Singapore		616,373		6,332,172		—		6,948,545
Spain		136,479		7,632,851		—		7,769,330
Sweden		644,670		7,753,406		—		8,398,076
Switzerland		1,428,732		9,921,226		—		11,349,958
United Kingdom		6,333,510		45,002,261		—		51,335,771
Preferred Stock1		—		153,078		—		153,078
Germany		296,731		1,086,271		—		1,383,002
Italy		119,725		167,394		—		287,119
Sweden		267,424		—		—		267,424
Rights
Australia		—		—		1,947		1,947
Canada		187		—		—		187
Other Investment Companies
United States1		13,208,938		—		—		13,208,938
Short-Term Investments1		—		1,356,495		—		1,356,495
Total		$72,845,447		$334,036,361		$33,811		$406,915,619

¹ As categorized in the complete schedule of portfolio holdings.

See financial notes 41

 Schwab Fundamental International Small Company Index Fund

Condensed Portfolio Holdings (Unaudited) continued

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Balance					Change in								��		Balance
	as of		Realized			Unrealized						Gross		Gross		as of
	October 31,		Gains			Appreciation		Gross		Gross		Transfers		Transfers		April 30,
Investments in Securities	2014		(Losses)			(Depreciation)		Purchases		Sales		in		out		2015
Common Stock
Australia		$—		($93,624	)		$36,924		$60,529		$—		$22,593		$—		$26,422
Republic of Korea		2,970		—			2,472		—		—		—		—		5,442
Rights
Australia		—		—			1,947		—		—		—		—		1,947
Total		$2,970		($93,624	)		$41,343		$60,529		$—		$22,593		$—		$33,811

All net realized and change in unrealized gains (losses) in the table above are reflected on the accompanying Statement of Operations. The change in net unrealized appreciation (depreciation) for Level 3 investments held by the fund at April 30, 2015 was ($54,228).

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were security transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015. The transfers in the amount of $6,154,178 and $6,602,121 from Level 1 to Level 2 and from Level 2 to Level 1, respectively, were primarily due to the use of international fair valuation by the fund. The transfers into Level 3 from Level 1 or Level 2 were due to the result of fair valued securities for which no quoted value was available.

42 See financial notes

 Schwab Fundamental International Small Company Index Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments, at value (cost $353,554,456) including securities on loan of $9,265,659		$397,060,031
Collateral invested for securities on loan, at value (cost $9,855,588)	+	9,855,588
Total investments, at value (cost $363,410,044)		406,915,619
Deposit with broker for futures contracts		198,000
Receivables:
Investments sold		973,978
Dividends		1,616,505
Fund shares sold		1,414,543
Foreign tax reclaims		62,870
Income from securities on loan		34,436
Prepaid expenses	+	565
Total assets		411,216,516
Liabilities
Collateral held for securities on loan		9,855,588
Payables:
Investments bought		2,149,990
Investment adviser and administrator fees		18,206
Shareholder service fees		3,706
Due to custodian		689,824
Fund shares redeemed		282,425
Accrued expenses	+	160,299
Total liabilities		13,160,038
Net Assets
Total assets		411,216,516
Total liabilities	−	13,160,038
Net assets		$398,056,478
Net Assets by Source
Capital received from investors		357,513,120
Net investment income not yet distributed		664,266
Net realized capital losses		(3,644,198	)
Net unrealized capital appreciation		43,523,290
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$398,056,478		33,903,644			$11.74

See financial notes 43

 Schwab Fundamental International Small Company Index Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends (net of foreign withholding taxes of $459,425)		$4,028,041
Interest		871
Securities on loan	+	138,537
Total investment income		4,167,449
Expenses
Investment adviser and administrator fees		644,074
Shareholder service fees		136,075
Index fee		136,469
Custodian fees		103,444
Portfolio accounting fees		47,396
Professional fees		23,545
Transfer agent fees		20,019
Registration fees		16,633
Shareholder reports		11,817
Independent trustees’ fees		3,743
Interest expense		383
Other expenses	+	12,081
Total expenses		1,155,679
Expense reduction by CSIM and its affiliates	−	366,306
Net expenses	−	789,373
Net investment income		3,378,076
Realized and Unrealized Gains (Losses)
Net realized losses on investments		(1,807,051	)
Net realized losses on futures contracts		(79,490	)
Net realized losses on foreign currency transactions	+	(109,226	)
Net realized losses		(1,995,767	)
Net change in unrealized appreciation (depreciation) on investments		27,352,845
Net change in unrealized appreciation (depreciation) on futures contracts		(4,234	)
Net change in unrealized appreciation (depreciation) on foreign currency translations	+	39,925
Net change in unrealized appreciation (depreciation)	+	27,388,536
Net realized and unrealized gains		25,392,769
Increase in net assets resulting from operations		$28,770,845

44 See financial notes

 Schwab Fundamental International Small Company Index Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$3,378,076			$3,873,605
Net realized gains (losses)		(1,995,767	)		4,363,595
Net change in unrealized appreciation (depreciation)	+	27,388,536			(12,459,728	)
Increase (Decrease) in net assets from operations		28,770,845			(4,222,528	)
Distributions to Shareholders
Distributions from net investment income		(4,674,757	)		(4,201,706	)
Distributions from net realized gains	+	(1,212,255	)		—
Total distributions		($5,887,012	)		($4,201,706	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			13,483,118		$146,177,916			15,320,962		$176,589,635
Shares reinvested			378,138		4,049,856			238,640		2,675,147
Shares redeemed	+		(4,646,090	)	(50,452,812	)		(3,909,585	)	(45,018,061	)
Net transactions in fund shares			9,215,166		$99,774,960			11,650,017		$134,246,721
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			24,688,478		$275,397,685			13,038,461		$149,575,198
Total increase	+		9,215,166		122,658,793			11,650,017		125,822,487
End of period			33,903,644		$398,056,478			24,688,478		$275,397,685
Net investment income not yet distributed					$664,266					$1,960,947

See financial notes 45

Schwab Fundamental Emerging Markets Large Company Index Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		8.60			9.24			8.86			9.17			10.81			8.91
Income (loss) from investment operations:
Net investment income (loss)		0.05	1		0.20			0.19			0.25			0.24			0.17
Net realized and unrealized gains (losses)		0.06			(0.66	)		0.43			(0.17	)		(1.37	)		1.81
Total from investment operations		0.11			(0.46	)		0.62			0.08			(1.13	)		1.98
Less distributions:
Distributions from net investment income		(0.21	)		(0.18	)		(0.24	)		(0.22	)		(0.15	)		(0.08	)
Distributions from net realized gains		—			—			—			(0.17	)		(0.36	)		—
Total distributions		(0.21	)		(0.18	)		(0.24	)		(0.39	)		(0.51	)		(0.08	)
Net asset value at end of period		8.50			8.60			9.24			8.86			9.17			10.81
Total return (%)		1.60	2		(5.03	)		7.11			1.18			(10.99	)		22.36
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		0.49	3		0.49			0.51	4,5		0.56	6		0.61	7		0.61	7
Gross operating expenses		0.84	3		0.85			0.88			0.91			0.91			0.98
Net investment income (loss)		1.24	3		2.35			2.22			2.75			2.51			2.31
Portfolio turnover rate		13	2		19			22			86	8		56			91
Net assets, end of period ($ x 1,000,000)		404			346			353			314			310			294

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

⁴ Effective June 11, 2013, the net operating expense limitation was lowered. The ratio presented for period ended 10/31/13 is a blended ratio.

⁵ The ratio of net operating expenses would have been 0.56%, if voluntary waiver by CSIM had not been included.

⁶ The ratio of net operating expenses would have been 0.60%, if voluntary waiver by CSIM had not been included.

⁷ The ratio of net operating expenses would have been 0.60%, if interest expenses had not been incurred.

⁸ Portfolio turnover would have been 51%, if rebalancing trades had not been included due to a change in the fund’s index.

46 See financial notes

 Schwab Fundamental Emerging Markets Large Company Index Fund

Condensed Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows the fund’s 50 largest portfolio holdings in unaffiliated issuers, and any holdings exceeding 1% of the fund’s net assets as of the report date, and any affiliated issuers. The remaining securities held by the fund are grouped as “Other Securities” in each category. You can request a complete schedule of portfolio holdings as of the report date, free of charge, by calling Schwab Funds^® at 1-800-435-4000. This complete schedule, filed on the fund’s Form N-CSRS, is also available on the SEC’s website at www.sec.gov.

In addition, the fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15-20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	90	.4%	Common Stock		343,323,329		365,074,762
	9	.3%	Preferred Stock		51,464,277		37,654,895
	0	.1%	Other Investment Company		511,000		511,000
	0	.0%	Corporate Bond		59,699		57,601
	0	.4%	Short-Term Investment		1,340,405		1,340,405
	100	.2%	Total Investments		396,698,710		404,638,663
	(0	.2)%	Other Assets and Liabilities, Net				(919,070	)
	100	.0%	Net Assets				403,719,593

	Number		% of Net		Value
Security	of Shares		Assets		($)
Common Stock 90.4% of net assets
Brazil 6.3%
Ambev S.A.		344,751		0.5		2,167,173
Banco do Brasil S.A.		291,353		0.7		2,574,161
Petroleo Brasileiro S.A. *		1,216,058		1.4		5,751,449
Vale S.A.		529,979		1.0		3,984,143
Other Securities				2.7		10,996,942
				6.3		25,473,868
Chile 0.9%
Other Securities				0.9		3,518,967
China 19.5%
Bank of China Ltd., Class H		10,520,234		1.8		7,208,496
China Construction Bank Corp., Class H		10,081,000		2.4		9,785,974
China Life Insurance Co., Ltd., Class H		379,000		0.5		1,839,394
China Mobile Ltd.		662,100		2.3		9,456,963
China Petroleum & Chemical Corp., Class H		7,621,400		1.8		7,192,817
China Telecom Corp., Ltd., Class H		2,360,000		0.4		1,748,307
CNOOC Ltd.		2,502,000		1.1		4,266,440
Industrial & Commercial Bank of China Ltd., Class H		9,504,172		2.0		8,244,496
PetroChina Co., Ltd., Class H		4,204,000		1.4		5,422,164
Other Securities				5.8		23,456,440
				19.5		78,621,491
Colombia 0.3%
Other Securities				0.3		1,113,287
Czech Republic 0.4%
Other Securities				0.4		1,436,340
Greece 0.4%
Other Securities				0.4		1,713,858
Hungary 0.7%
Other Securities				0.7		2,709,010
India 3.2%
Reliance Industries Ltd.		229,869		0.7		3,117,645
Other Securities				2.5		10,011,960
				3.2		13,129,605
Indonesia 0.9%
Other Securities				0.9		3,582,575
Malaysia 2.0%
Other Securities				2.0		8,099,562
Mexico 3.1%
America Movil S.A.B. de C.V., Series L		3,939,200		1.0		4,136,391
Other Securities				2.1		8,600,904
				3.1		12,737,295
Peru 0.1%
Other Securities				0.1		500,669
Philippines 0.2%
Other Securities				0.2		704,662
Poland 2.2%
KGHM Polska Miedz S.A.		49,457		0.4		1,734,086
Polski Koncern Naftowy Orlen S.A.		154,527		0.7		2,934,710
Other Securities				1.1		4,320,012
				2.2		8,988,808
Republic of Korea 17.3%
Hyundai Heavy Industries Co., Ltd. *		14,908		0.5		1,936,984
Hyundai Motor Co.		22,069		0.9		3,463,533
Kia Motors Corp.		43,706		0.5		2,014,050
LG Chem Ltd.		7,572		0.5		1,912,750
LG Corp.		33,861		0.5		2,101,049
LG Electronics, Inc.		40,783		0.6		2,293,344
POSCO		17,742		1.0		4,179,369
Samsung Electronics Co., Ltd.		12,386		4.0		16,248,620
Shinhan Financial Group Co., Ltd.		51,181		0.5		2,118,287
SK Holdings Co., Ltd.		14,874		0.6		2,561,130

See financial notes 47

 Schwab Fundamental Emerging Markets Large Company Index Fund

Condensed Portfolio Holdings (Unaudited) continued

	Number		% of Net		Value
Security	of Shares		Assets		($)
SK Innovation Co., Ltd. *		32,801		0.9		3,590,230
Other Securities				6.8		27,322,656
				17.3		69,742,002
Russia 11.8%
Gazprom OAO		2,924,000		2.2		8,713,532
Gazprom OAO ADR		1,420,000		2.1		8,319,706
LUKOIL OAO *		92,799		1.2		4,766,240
LUKOIL OAO ADR		127,000		1.6		6,496,749
MMC Norilsk Nickel OJSC ADR		112,700		0.5		2,122,991
Mobile TeleSystems ADR		144,851		0.4		1,749,800
Surgutneftegas ADR		712,500		1.3		5,160,495
Tatneft ADR		52,100		0.4		1,787,141
Other Securities				2.1		8,383,791
				11.8		47,500,445
South Africa 6.6%
MTN Group Ltd.		216,190		1.1		4,340,860
Sasol Ltd.		113,822		1.1		4,582,869
Standard Bank Group Ltd.		142,522		0.5		2,089,078
Other Securities				3.9		15,652,873
				6.6		26,665,680
Taiwan 11.8%
Chunghwa Telecom Co., Ltd.		597,906		0.5		1,929,615
Compal Electronics, Inc.		2,165,305		0.5		1,971,344
Hon Hai Precision Industry Co., Ltd.		1,900,416		1.4		5,694,495
Taiwan Semiconductor Manufacturing Co., Ltd.		1,520,689		1.8		7,321,010
Other Securities				7.6		30,871,105
				11.8		47,787,569
Thailand 1.3%
PTT PCL		225,187		0.6		2,431,869
Other Securities				0.7		2,949,160
				1.3		5,381,029
Turkey 1.4%
Other Securities				1.4		5,668,040
Total Common Stock
(Cost $343,323,329)						365,074,762
Preferred Stock 9.3% of net assets
Brazil 7.1%
Banco Bradesco S.A.		306,320		0.8		3,269,641
Itau Unibanco Holding S.A.		387,780		1.2		4,958,981
Petroleo Brasileiro S.A. *		1,806,860		1.9		7,826,058
Vale S.A.		736,402		1.1		4,436,083
Other Securities				2.1		8,327,017
				7.1		28,817,780
Colombia 0.1%
Other Securities				0.1		470,732
Republic of Korea 0.9%
Samsung Electronics Co., Ltd.		2,107		0.6		2,137,955
Other Securities				0.3		1,295,742
				0.9		3,433,697
Russia 1.2%
AK Transneft OAO *		1,646		0.9		3,876,775
Other Securities				0.3		1,055,911
				1.2		4,932,686
Total Preferred Stock
(Cost $51,464,277)						37,654,895
Other Investment Company 0.1% of net assets
United States 0.1%
Securities Lending Collateral 0.1%
Other Securities				0.1		511,000
Total Other Investment Company
(Cost $511,000)						511,000
	Face
Security	Amount		% of Net		Value
Rate, Maturity Date	($)		Assets		($)
Corporate Bond 0.0% of net assets
India 0.0%
Other Securities				0.0		57,601
Total Corporate Bond
(Cost $59,699)						57,601
Short-Term Investment 0.4% of net assets
Time Deposit 0.4%
Other Securities				0.4		1,340,405
Total Short-Term Investment
(Cost $1,340,405)						1,340,405
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $411,620,368 and the unrealized appreciation and depreciation were $44,009,653 and ($50,991,358), respectively, with a net unrealized depreciation of ($6,981,705).

48 See financial notes

 Schwab Fundamental Emerging Markets Large Company Index Fund

Condensed Portfolio Holdings (Unaudited) continued

At 04/30/15, the values of certain foreign securities held by the fund aggregating $294,566,847 were adjusted from their closing market values in accordance with international fair valuation procedures approved by the fund’s Board of Trustees. (See financial note 2(a) for additional information)

For the following notes, please refer to the complete schedule of porfolio holdings.

*	Non-income producing security.
(a)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(b)	Illiquid security. At the period end, the value of these amounted to $37,329 or 0.0% of net assets.
(c)	All or a portion of this security is on loan. Securities on loan were valued at $479,855.
(d)	The rate shown is the 7-day yield.

ADR —	American Depositary Receipt
GDR —	Global Depositary Receipt
Reg’d —	Registered

In additional to the above the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Appreciation
	Contracts		($)		($)
Futures Contracts
MSCI Emerging Markets, mini, Long, expires 06/19/15		10		519,350		689

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Common Stock1		$—		$68,445,512		$—		$68,445,512
Brazil		25,473,868		—		—		25,473,868
Chile		3,518,967		—		—		3,518,967
China		415,261		78,206,230		—		78,621,491
Colombia		1,113,287		—		—		1,113,287
Czech Republic		372,166		1,064,174		—		1,436,340
Hungary		470,110		2,238,900		—		2,709,010
India		1,003,623		12,123,081		2,901		13,129,605
Malaysia		1,204,364		6,895,198		—		8,099,562
Mexico		12,737,295		—		—		12,737,295
Peru		500,669		—		—		500,669
Republic of Korea		1,825,496		67,916,506		—		69,742,002
Russia		19,436,043		28,064,402		—		47,500,445
South Africa		486,533		26,179,147		—		26,665,680
Thailand		5,381,029		—		—		5,381,029
Preferred Stock1		—		3,433,697		—		3,433,697
Brazil		28,817,780		—		—		28,817,780
Colombia		470,732		—		—		470,732
Russia		4,932,686		—		—		4,932,686
Other Investment Company1		511,000		—		—		511,000
Corporate Bond1		—		—		57,601		57,601
Short-Term Investments1		—		1,340,405		—		1,340,405
Total		$108,670,909		$295,907,252		$60,502		$404,638,663
Other Financial Instruments
Futures Contracts2		$689		$—		$—		$689

1	As categorized in the complete schedule of portfolio holdings.
2	Futures contracts are not included in Investments in the schedule of condensed portfolio holdings and are valued at unrealized appreciation or depreciation.

See financial notes 49

 Schwab Fundamental Emerging Markets Large Company Index Fund

Condensed Portfolio Holdings (Unaudited) continued

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Balance							Change in												Balance
	as of		Accrued			Realized		Unrealized								Gross		Gross		as of
Investments in	October 31,		Discounts			Gains		Appreciation			Gross		Gross			Transfers		Transfers		April 30,
Securities	2014		(Premiums)			(Losses)		(Depreciation)			Purchases		Sales			in		out		2015
Common Stock
India		$—		$—			$—		$371			$2,530		$—			$—		$—		$2,901
Republic of Korea		519,813		—			—		29,288			—		(549,101	)		—		—		—
Corporate Bonds
India		—		(5	)		—		(2,099	)		—		59,705			—		—		57,601
Total		$519,813		($5	)		$—		$27,560			$2,530		($489,396	)		$—		$—		$60,502

All net realized and change in unrealized gains (losses) in the table above are reflected on the accompanying Statement of Operations. The change in net unrealized appreciation (depreciation) for Level 3 investments held by the fund at April 30, 2015 was ($1,728).

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were security transfers in the amount of $1,831,093 and $13,756,059 from Level 1 to Level 2 and from Level 2 to Level 1, respectively, for the period ended April 30, 2015. The transfers between Level 1 and Level 2 were primarily due to the use of international fair valuation by the fund. There were no transfers in or out of Level 3 during the period.

50 See financial notes

 Schwab Fundamental Emerging Markets Large Company Index Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments, at value (cost $396,187,710) including securities on loan of $479,855		$404,127,663
Collateral invested for securities on loan, at value (cost $511,000)	+	511,000
Total investments, at value (cost $396,698,710)		404,638,663
Foreign currency, at value (cost $286,342)		286,947
Deposit with broker for futures contracts		64,750
Receivables:
Investments sold		1,570,836
Fund shares sold		371,970
Dividends		233,805
Foreign tax reclaims		5,743
Income from securities on loan		836
Interest		470
Prepaid expenses	+	1,704
Total assets		407,175,724
Liabilities
Collateral held for securities on loan		511,000
Payables:
Investment adviser and administrator fees		15,684
Shareholder service fees		3,481
Fund shares redeemed		2,649,849
Foreign capital gains tax		109,213
Variation margin on futures contracts		17,314
Accrued expenses and other liabilities	+	149,590
Total liabilities		3,456,131
Net Assets
Total assets		407,175,724
Total liabilities	−	3,456,131
Net assets		$403,719,593
Net Assets by Source
Capital received from investors		426,277,287
Net investment income not yet distributed		743,836
Net realized capital losses		(31,125,305	)
Net unrealized capital appreciation		7,823,775
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$403,719,593		47,492,662			$8.50

See financial notes 51

 Schwab Fundamental Emerging Markets Large Company Index Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends (net of foreign withholding taxes of $403,449)		$3,018,635
Interest (net of foreign withholding taxes of $25)		3,519
Securities on loan	+	4,303
Total investment income		3,026,457
Expenses
Investment adviser and administrator fees		875,455
Shareholder service fees		130,751
Custodian fees		167,665
Index fee		152,031
Portfolio accounting fees		37,154
Professional fees		33,009
Transfer agent fees		29,387
Shareholder reports		15,554
Registration fees		13,005
Independent trustees’ fees		3,871
Interest expense		1,943
Other expenses	+	14,230
Total expenses		1,474,055
Expense reduction by CSIM and its affiliates	−	614,167
Net expenses	−	859,888
Net investment income		2,166,569
Realized and Unrealized Gains (Losses)
Net realized losses on investments (net of foreign capital gain tax paid of $2,111)		(8,393,365	)
Net realized gains on futures contracts		259,575
Net realized losses on foreign currency transactions	+	(133,580	)
Net realized losses		(8,267,370	)
Net change in unrealized appreciation (depreciation) on investments (net of foreign capital gain tax of ($51,234))		18,390,694
Net change in unrealized appreciation (depreciation) on futures contracts		(56,235	)
Net change in unrealized appreciation (depreciation) on foreign currency translations	+	1,490
Net change in unrealized appreciation (depreciation)	+	18,335,949
Net realized and unrealized gains		10,068,579
Increase in net assets resulting from operations		$12,235,148

52 See financial notes

 Schwab Fundamental Emerging Markets Large Company Index Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$2,166,569			$8,456,428
Net realized losses		(8,267,370	)		(8,043,893	)
Net change in unrealized appreciation (depreciation)	+	18,335,949			(20,621,161	)
Increase (Decrease) in net assets from operations		12,235,148			(20,208,626	)
Distributions to Shareholders
Distributions from net investment income		($8,501,798	)		($7,207,709	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			18,539,128		$142,525,232			17,844,818		$157,305,857
Shares reinvested			686,509		5,279,258			517,807		4,510,103
Shares redeemed	+		(11,940,876	)	(93,441,957	)		(16,378,090	)	(141,770,574	)
Net transactions in fund shares			7,284,761		$54,362,533			1,984,535		$20,045,386
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			40,207,901		$345,623,710			38,223,366		$352,994,659
Total increase or decrease	+		7,284,761		58,095,883			1,984,535		(7,370,949	)
End of period			47,492,662		$403,719,593			40,207,901		$345,623,710
Net investment income not yet distributed					$743,836					$7,079,065

See financial notes 53

 Schwab Fundamental Index Funds

Financial Notes, unaudited

1. Business Structure of the Funds:

Each of the funds in this report is a series of Schwab Capital Trust (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 Capital Trust (organized May 7, 1993)	Schwab Large-Cap Growth Fund
Schwab Fundamental US Large Company Index Fund	Schwab Small-Cap Equity Fund
Schwab Fundamental US Small Company Index Fund	Schwab Hedged Equity Fund
Schwab Fundamental International Large Company Index Fund	Schwab Financial Services Fund
Schwab Fundamental International Small Company Index Fund	Schwab Health Care Fund
Schwab Fundamental Emerging Markets Large Company Index Fund	Schwab International Core Equity Fund
Schwab Fundamental Global Real Estate Index Fund	Schwab Target 2010 Fund
Schwab S&P 500 Index Fund	Schwab Target 2015 Fund
Schwab Small-Cap Index Fund	Schwab Target 2020 Fund
Schwab Total Stock Market Index Fund	Schwab Target 2025 Fund
Schwab International Index Fund	Schwab Target 2030 Fund
Schwab MarketTrack All Equity Portfolio	Schwab Target 2035 Fund
Schwab MarketTrack Growth Portfolio	Schwab Target 2040 Fund
Schwab MarketTrack Balanced Portfolio	Schwab Target 2045 Fund
Schwab MarketTrack Conservative Portfolio	Schwab Target 2050 Fund
Laudus Small-Cap MarketMasters Fund	Schwab Target 2055 Fund
Laudus International MarketMasters Fund	Schwab Monthly Income Fund - Moderate Payout
Schwab Balanced Fund	Schwab Monthly Income Fund - Enhanced Payout
Schwab Core Equity Fund	Schwab Monthly Income Fund - Maximum Payout
Schwab Dividend Equity Fund

Each fund in this report offers one share class. Shares are bought and sold (subject to a redemption fee, see financial note 9) 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 Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The funds invest in certain other investment companies (“underlying funds”). For specific investments in underlying funds, please refer to the complete schedule of portfolio holdings on Form N-CSRS, which is filed with the U.S. Securities and Exchange Commission (“SEC”). For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the SEC.

(a) Security Valuation:

Under procedures approved by the Board, the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair market value. Among other things, these procedures allow the funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:

•  Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at halfway between the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where

54 

 Schwab Fundamental Index Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.

•  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.

•  Foreign equity security fair valuation: The Board has adopted procedures to fair value foreign equity securities that are traded in markets that close prior to a fund valuing its holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, each fund seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter “arbitrage” market timers, who seek to exploit delays between the change in the value of a fund’s portfolio holdings and the NAV of the fund’s shares, and seeks to help ensure that the prices at which the fund’s shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of a fund and that of its comparative index or benchmark. The Board regularly reviews fair value determinations made by the funds pursuant to these procedures.

•  Futures contracts: Futures contracts are valued at their settlement prices as of the close of their exchanges.

•  Short-term securities (60 days or less to maturity): A short-term security may be valued at its amortized cost when it approximates the security’s market value.

•  Underlying funds: Mutual funds are valued at their respective NAVs. Exchange traded funds (“ETFs”) traded on a recognized securities exchange are valued at the last reported sale price that day or the official closing price, if applicable.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the funds disclose the fair value of their investments in a hierarchy that prioritizes the significant inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If the funds determine that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

The three levels of the fair value hierarchy are as follows:

•  Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities, ETFs and futures contracts. Investments in mutual funds are valued daily at their NAVs, and investments in ETFs are valued daily at the last reported sale price or the official closing price, which are classified as Level 1 prices, without consideration to the classification level of the specific investments held by an underlying fund.

•  Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most

55

 Schwab Fundamental Index Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. In addition, international securities whose markets close hours before the funds value their holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board has approved a vendor that calculates fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

•  Level 3 — significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and 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 April 30, 2015 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 market value may change daily.

Securities Lending: Under the trust’s Securities Lending Program, a fund (lender) may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating under Rule 2a-7 of the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allows the funds to terminate any loans at any given time. Securities lending income, as disclosed in each fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. A fund retains the right to recall a security on loan. The aggregate market value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan (at market value computed at the time of the loan). Total costs and expenses, including agent fees associated with securities lending activities under the trust’s Securities Lending Program paid to the unaffiliated lending agent are approximately 15% of the gross lending revenues.

The value of the securities on loan and the related collateral as of April 30, 2015, if any, are disclosed in each fund’s Portfolio Holdings. The value of the securities on loan and the investments of cash collateral are also disclosed in each fund’s Statement of Assets and Liabilities.

56 

 Schwab Fundamental Index Funds

Financial Notes, unaudited (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.

Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the differences between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. These realized and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations in the Statement of Operations. The funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Gains realized by the funds on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. In those instances, the funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.

When a fund closes out a futures contract position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.

(d) Investment Income:

Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the day they learn of the ex-dividend date. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.

Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.

(e) Expenses:

Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to all funds within the trust generally are allocated among the funds in proportion to their average daily net assets.

(f) Distributions to Shareholders:

The funds make distributions from net investment income and net realized capital gains, if any, once a year.

(g) Custody Credit:

Certain funds have an arrangement with their custodian bank, State Street Bank and Trust Company (“State Street”), under which the funds may receive a credit for their uninvested cash balance to offset their custody fees and accounting fees. The credit amounts, if any, are disclosed in the Statement of Operations as a reduction to a fund’s operating expenses.

(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.

57

 Schwab Fundamental Index Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(i) Federal Income Taxes:

The funds intend to meet federal income and excise tax requirements for regulated investment companies. Accordingly, the funds distribute substantially all of their net investment income and realized net 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) Foreign Taxes:

The funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges and capital gains on investments. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in foreign markets in which the funds invest. These foreign taxes, if any, are paid by the funds and are disclosed in the Statement of Operations. Foreign taxes payable as of April 30, 2015, if any, are reflected in each fund’s Statement of Assets and Liabilities.

(k) 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.

(l) New Accounting Pronouncements:

In June 2014, Accounting Standards Update (“ASU”) No. 2014-11, Topic 860 Transfers and Servicing — Repurchase-to-Maturity Transactions, Repurchase Financings and Disclosures, was issued and is effective for interim periods beginning after 3/15/15 and annual periods beginning after December 15, 2014. The ASU modifies accounting guidance and enhances disclosure requirements for repurchase agreement and securities lending transactions. Management is currently evaluating the impact the adoption of ASU 2014-11 may have on the funds’ financial statement disclosures.

3. Risk Factors:

Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.

Market Risk. Equity markets rise and fall daily. As with any investment whose performance is tied to these markets, the value of the investment in a fund will fluctuate, which means that the investors could lose money.

Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

Tracking Error Risk. As an index fund, each fund seeks to track the performance of its comparative index, although it may not be successful in doing so. The divergence between the performance of a fund and its index, positive or negative, is called “tracking error”. Tracking error can be caused by many factors and it may be significant. For example, a fund may not invest in certain securities in the index, or match the securities’ weightings to the index, due to regulatory, operational, custodial or liquidity constraints; corporate transactions; asset valuations; transaction costs and timing; tax considerations; and index rebalancing, which may result in tracking error.

Investment Style Risk. Each fund invests in companies measured by its respective index. It follows these stocks during upturns as well as downturns. Because of its indexing strategy, a fund does not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of a fund’s expenses, a fund’s performance may be below that of the index.

A significant percentage of an index may be composed of securities in a single industry or sector of the economy. If a fund is focused in an industry or sector, it may present more risks than if it were broadly diversified over numerous industries and sectors of the economy.

Sampling Index Tracking Risk. If a fund uses a sampling method, the fund will not fully replicate its comparative index and may hold securities not included in the index. As a result, the fund will be subject to the risk that the investment adviser’s

58 

 Schwab Fundamental Index Funds

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. If a 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 its index.

Concentration Risk. To the extent that a fund’s or an index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector, country, or asset class, the fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector, country, or asset class.

Large-Cap Risk. Although certain indices encompass stocks from many different sectors of the economy, their performance may primarily reflect that of large company stocks, which tend to go in and out of favor based on market and economic conditions. As a result, during a period when these stocks fall behind other types of investments — bonds or small company stocks, for instance — a fund’s performance also will lag those investments.

Small-Cap Risk. Historically, small-cap stocks have been riskier than large-cap stocks. Stock prices of smaller companies may be based in substantial part on future expectations rather than current achievements and may move sharply, especially during market upturns and downturns. Small-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies. During a period when small-cap stocks fall behind other types of investments — large-cap stocks, for instance — a fund’s performance also will lag those investments.

Foreign Investment Risk. A fund’s investments in securities of foreign issuers may involve certain risks that are greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of a fund’s investments, and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategy. These risks may be heightened in connection with investments in emerging markets. Foreign securities also include American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), which are depositary receipts issued by U.S. and foreign banks that represent shares of foreign-based corporations. Investments in ADRs, GDRs and EDRs may be less liquid than the underlying shares in their primary trading market; and GDRs, many of which are issued by companies in emerging markets, may be more volatile. To the extent a fund’s investments in a single country or a limited number of countries represent a larger percentage of the fund’s assets, the fund’s performance may be adversely affected by the economic, political and social conditions in those countries and it may be subject to increased price volatility.

Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Such countries often have less uniformity in accounting and reporting requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with a fund’s investments in emerging market countries and, at times, it may be difficult to value such investments.

ETF Risk. A fund may purchase shares of ETFs to gain exposure to a particular portion of the market while awaiting an opportunity to purchase securities directly. When a fund invests in an ETF, in addition to directly bearing the expenses associated with its own operations, it will bear a proportionate share of the ETF’s expenses. Therefore, it may be more costly to own an ETF than to own the underlying securities directly. In addition, while the risks of owning shares of an ETF generally reflect the risks of owning the underlying securities the ETF is designed to track, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio securities.

Derivatives Risk. A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as liquidity risk and market risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to credit risk, leverage risk, 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. Credit risk is the risk that the counterparty to a derivatives transaction may not fulfill its obligations. Leverage risk is the risk that a small percentage of assets invested in derivatives can have a disproportionately large impact on a fund. 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

59

 Schwab Fundamental Index Funds

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause a fund to realize higher amounts of short-term capital gain. A fund’s use of derivatives could reduce the fund’s performance, increase its volatility, and could cause the fund to lose more than the initial amount invested.

Liquidity Risk. A particular investment may be difficult to purchase or sell. A fund may be unable to sell illiquid securities at an advantageous time or price.

Security Lending Risk. Securities lending involves the risk of loss of rights in the collateral or delay in recovery of the collateral if the borrower fails to return the security loaned or becomes insolvent.

Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.

4. Affiliates and Affiliated Transactions:

Charles Schwab Investment Management, Inc. (“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 CSIM and the trust.

For its advisory and administrative services to the funds, CSIM is entitled to receive an annual fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:

									Schwab
					Schwab		Schwab		Fundamental
	Schwab		Schwab		Fundamental		Fundamental		Emerging
	Fundamental		Fundamental		International		International		Markets
	US Large		US Small		Large		Small		Large
	Company		Company		Company		Company		Company
% of Average Daily Net Assets	Index Fund		Index Fund		Index Fund		Index Fund		Index Fund
First $500 million		0.30%		0.30%		0.30%		0.40%		0.50%
$500 million to $5 billion		0.22%		0.22%		0.22%		0.38%		0.48%
$5 billion to $10 billion		0.20%		0.20%		0.20%		0.36%		0.46%
over $10 billion		0.18%		0.18%		0.18%		0.34%		0.44%

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 service providers, including Charles Schwab & Co., Inc. (a broker-dealer affiliate of CSIM, “Schwab”), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the funds. Schwab serves as the funds’ paying agent under the Plan for making payments of the shareholder service fee due to the service providers (other than Schwab) under the Plan. All shareholder service fees paid by the funds to Schwab in its capacity as the funds’ paying agent will be passed through to the service providers, and Schwab will not retain any portion of such fees.

Pursuant to the Plan, each fund’s shares are subject to an annual shareholder servicing fee up to 0.10%. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab (or, in the case of payments made to Schwab, pursuant to Schwab’s written agreement with the funds). Payments under the Plan are made as described above regardless of Schwab’s or the service provider’s actual cost of providing the services. If the cost of providing the services under the Plan is less than the payments received, the unexpended portion of the fees may be retained as profit by Schwab or the service provider.

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

60 

 Schwab Fundamental Index Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes and certain non-routine expenses (“expense limitation”). The expense limitation as a percentage of average daily net assets is as follows:

								Schwab
				Schwab		Schwab		Fundamental
Schwab		Schwab		Fundamental		Fundamental		Emerging
Fundamental		Fundamental		International		International		Markets
US Large		US Small		Large		Small		Large
Company		Company		Company		Company		Company
Index Fund		Index Fund		Index Fund		Index Fund		Index Fund
	0.35%		0.35%		0.35%		0.49%		0.49%

CSIM has a licensing agreement with the Frank Russell Company to use certain Russell indices and trademarks in connection with the offering and operation of certain registered investment companies. The funds have entered into a sub-license agreement with CSIM pursuant to which CSIM has agreed to sub-license certain Russell indices and trademarks to the funds. Under the sub-license agreement, each fund pays its pro rata share of licensing fees.

The funds may engage in certain transactions involving affiliates. For instance, a fund may own shares of The Charles Schwab Corporation if that company is included in its index. Below is the summary of investment activities involving The Charles Schwab Corporation shares owned by the Schwab Fundamental US Large Company Index Fund during the report period:

Balance

Balance

Realized

Dividends

of Shares

of Shares

Market

Gains (Losses)

Received

Held at

Gross

Gross

Held at

Value at

11/01/14

11/01/14

Fund

10/31/14

Purchases

Sales

04/30/15

04/30/15

to 04/30/15

to 04/30/15

Schwab Fundamental US Large Company Index Fund

106,515

—

(17,700

)

88,815

$2,708,858

$162,765

$12,782

Certain Schwab Funds may own shares of other Schwab Funds. The table below reflects the percentages of shares of each fund in this report that are owned by other Schwab Funds as of April 30, 2015, as applicable:

	Underlying Funds
					Schwab		Schwab		Schwab
	Schwab		Schwab		Fundamental		Fundamental		Fundamental
	Fundamental		Fundamental		International		International		Emerging Markets
	US Large		US Small		Large		Small		Large
	Company		Company		Company		Company		Company
	Index Fund		Index Fund		Index Fund		Index Fund		Index Fund
Schwab MarketTrack All Equity Portfolio		1.6%		3.0%		3.4%		7.8%		8.1%
Schwab MarketTrack Growth Portfolio		1.8%		3.0%		2.9%		6.3%		6.7%
Schwab MarketTrack Balanced Portfolio		0.9%		1.6%		1.5%		3.4%		3.6%
Schwab MarketTrack Conservative Portfolio		0.3%		0.5%		0.4%		1.0%		1.1%

* Less than 0.1%

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 only. The interest rate to be charged on a loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. The interfund lending facility is subject to the oversight and periodic review by the Board. The funds had no interfund borrowing or lending activity during the period.

The funds may engage in direct transactions with certain other Schwab Funds when practical. 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.

61

 Schwab Fundamental Index Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

This practice is limited to funds that share the same investment adviser, trustees and/or officers. For the period ended April 30, 2015, each fund’s total aggregate security transactions with other Schwab Funds were as follows:

Schwab Fundamental US Large Company Index Fund	$406,536
Schwab Fundamental US Small Company Index Fund	6,180,074
Schwab Fundamental International Large Company Index Fund	49,198,213
Schwab Fundamental International Small Company Index Fund	3,940,892
Schwab Fundamental Emerging Markets Large Company Index Fund	237,771

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 a 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:

The funds have access to custodian overdraft facilities, a committed line of credit of $150 million with State Street, an uncommitted line of credit of $100 million with Bank of America, N.A. and an uncommitted line of credit of $50 million with Brown Brothers Harriman & Co. The funds pay interest on the amounts they borrow at rates that are negotiated periodically. The funds also pay an annual fee to State Street for the committed line of credit.

There were no borrowings from the lines of credit by the funds during the period. However, the funds may have utilized their overdraft facility and incurred an interest expense, which is disclosed on a fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

7. Derivatives:

Certain funds entered into equity index futures contracts during the report period. The funds invested in futures contracts to equitize available cash. The fair value and variation margin for futures contracts held at April 30, 2015 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, the month-end average contract values of futures contracts held by the funds and the month-end average number of contracts held were as follows:

	Contract Values		Number of Contracts
Schwab Fundamental US Large Company Index Fund		$52,304,871		508
Schwab Fundamental US Small Company Index Fund		14,471,583		120
Schwab Fundamental International Large Company Index Fund		4,899,600		54
Schwab Fundamental International Small Company Index Fund		15,303		1
Schwab Fundamental Emerging Markets Large Company Index Fund		3,350,033		69

62 

 Schwab Fundamental Index Funds

Financial Notes, unaudited (continued)

8. Purchases and Sales/Maturities of Investment Securities:

For the period ended April 30, 2015, purchases and sales/maturities of securities (excluding short-term obligations) were as follows:

	Purchases of Securities		Sales/Maturities of Securities
Schwab Fundamental US Large Company Index Fund		$691,206,412		$210,266,488
Schwab Fundamental US Small Company Index Fund		380,126,409		131,782,705
Schwab Fundamental International Large Company Index Fund		171,043,089		39,899,567
Schwab Fundamental International Small Company Index Fund		152,191,626		55,491,020
Schwab Fundamental Emerging Markets Large Company Index Fund		94,899,266		44,649,926

9. Redemption Fee:

The funds charge a 2.00% redemption fee on shares sold or exchanged within 30 days of the original purchase date. Such amounts are netted against redemption proceeds on the Statement of Changes in Net Assets. The redemption fees charged during the current and prior periods are:

	Current Period		Prior Period
	(11/1/14-4/30/15)		(11/1/13-10/31/14)
Schwab Fundamental US Large Company Index Fund		$28,575		$78,706
Schwab Fundamental US Small Company Index Fund		8,551		9,756
Schwab Fundamental International Large Company Index Fund		9,192		16,541
Schwab Fundamental International Small Company Index Fund		1,933		5,415
Schwab Fundamental Emerging Markets Large Company Index Fund		6,350		10,683

10. Federal Income Taxes:

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2014, the funds had capital loss carryforwards available to offset future net capital gains before the expiration dates as follows:

					Schwab		Schwab		Schwab
	Schwab		Schwab		Fundamental		Fundamental		Fundamental
	Fundamental		Fundamental		International		International		Emerging
	US Large		US Small		Large		Small		Markets Large
	Company		Company		Company		Company		Company
Expiration Date	Index Fund		Index Fund		Index Fund		Index Fund		Index Fund
October 31, 2017		$—		$—		$6,761,375		$—		$—
October 31, 2018		—		—		58,777,944		—		—
October 31, 2019		—		—		20,948,477		—		—
No expiration*		—		—		14,155,355		—		15,312,596
Total		$—		$—		$100,643,151		$—		$15,312,596

* As a result of the passage of the Regulated Investment Company Modernization Act of 2010 (“RIC”), capital losses incurred after December 31, 2010 may now be carried forward indefinitely, but must retain the character of the original loss. However, such losses must be utilized prior to the pre-enactment capital losses, which may increase the likelihood that the pre-enactment capital losses may expire unused. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital loss, irrespective of the character of the original loss.

63

 Schwab Fundamental Index Funds

Financial Notes, unaudited (continued)

10. Federal Income Taxes (continued):

For the year ended October 31, 2014, the funds had capital loss carryforwards utilized as follows:

					Schwab		Schwab		Schwab
	Schwab		Schwab		Fundamental		Fundamental		Fundamental
	Fundamental		Fundamental		International		International		Emerging
	US Large		US Small		Large		Small		Markets Large
	Company		Company		Company		Company		Company
	Index Fund		Index Fund		Index Fund		Index Fund		Index Fund
Capital loss carryforwards utilized		$12,619,654		$—		$17,734,955		$3,782,977		$—

As of October 31, 2014, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended October 31, 2014, the funds did not incur any interest or penalties.

11. Other:

As a result of recent political and military actions undertaken by the Russian Federation, the U.S. and the European Union have instituted various economic sanctions against Russian individuals and entities. The U.S. and/or the European Union may impose additional economic sanctions, or take other actions, against individuals and/or companies in specific sectors of the Russian economy, including, but not limited to, the financial services, energy, metals and mining, engineering, and defense and defense- related materials sectors. These sanctions, and the threat of additional sanctions, could have adverse consequences for the Russian economy, including continued weakening of the Russian currency, downgrades in Russia’s credit rating, and a significant decline in the value and liquidity of securities issued by Russian companies or the Russian government. Any of these events could negatively impact a fund’s investment in Russian securities. These sanctions have the possibility of impairing a fund’s ability to invest in accordance with its investment strategy and/or to meet its investment objective.

In addition, as index based products, the funds will generally maintain exposure to Russian securities to the extent the indexes which they track include such securities. For this reason, the sanction instituted against Russia, and any continued disruption of the Russian economy, could negatively impact a fund’s performance to the extent its index and its portfolio contain securities of Russian issuers, and, depending on the fund’s exposure to Russian issuers, the impact could be significant.

12. Subsequent Events:

Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.

64 

Trustees and Officers

The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust. The Fund Complex includes 95 funds.

The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-800-435-4000.

 Independent Trustees

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served1)	During the Past Five Years	the Trustee	Other Directorships
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 and Laudus Institutional Trust since 2010)	Senior Fellow, The Hoover Institution at Stanford University (Oct. 1979 – present); Senior Fellow Stanford Institute for Economic Policy Research (2000 – present); Professor of Public Policy, Stanford University (1994 – present).	74	Director, Gilead Sciences, Inc. (2005 – present)
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Private Investor.	74	Director, Symantec Corporation (2003 – present) Director, Corcept Therapeutics Incorporated (2004 – present) Director, Adamas Pharmaceuticals, Inc. (2009 – present)
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Retired. Executive Vice President and General Manager of Small Business Group, Intuit, Inc. (financial software and services firm for consumers and small businesses) (Dec. 2008 – Sept. 2013)	74	Director, KLA-Tencor Corporation (2008 – present)

65

 Independent Trustees (continued)

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served1)	During the Past Five Years	the Trustee	Other Directorships
Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2015)	Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (May 2009 – present); Director, Asset International, Inc. (publisher of financial services information) (Jan. 2009 – Nov. 2014).	95	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 and Laudus Institutional Trust since 2010)	Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (Mar. 1990 –present).	74	Director, Eaton (2012 – present) Director and Chairman of the Audit Committee, Oneok Partners LP (2003 – 2013) Director, Oneok, Inc. (2009 – 2013) Lead Independent Director, Board of Cooper Industries (2002 – 2012)
Joseph H. Wender 1944 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010)	Senior Consultant, Goldman Sachs & Co., Inc. (investment banking and securities firm) (Jan. 2008 – present); Partner, Colgin Partners, LLC (vineyards) (Feb. 1998 – present).	74	Board Member and Chairman of the Audit Committee, Isis Pharmaceuticals (1994 – present)

66 

 Interested Trustees

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served)	During the Past Five Years	the Trustee	Other Directorships
Charles R. Schwab2 1937 Chairman and Trustee (Chairman and Trustee of The Charles Schwab Family of Funds since 1989; Schwab Investments since 1991; Schwab Capital Trust since 1993; Schwab Annuity Portfolios since 1994; Laudus Trust and Laudus Institutional Trust since 2010)	Chairman and Director, The Charles Schwab Corporation (1986 – present); Chairman and Director of Charles Schwab & Co., Inc. (1971 – present); Chairman and Director of Charles Schwab Investment Management, Inc. (1989 – present); Chairman and Director of Charles Schwab Bank (2003 – present); Chairman and Chief Executive Officer of Schwab (SIS) Holdings Inc. I and Schwab International Holdings, Inc. (1996 – present); and Director, Chairman and Chief Executive Officer, Schwab Holdings, Inc. (1979 – present).	74	Chairman and Director, The Charles Schwab Corporation (1986 – present) Director, Yahoo! Inc. (2014 – present)
Walter W. Bettinger II2 1960 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (2008 – present); Director, Charles Schwab Bank (2006 – present); and Director Schwab Holdings, Inc. (2008 – present).	95	Director, The Charles Schwab Corporation (2008 – present)

 Officers of the Trust

Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served3)	Principal Occupations During the Past Five Years
Marie Chandoha 1961 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (January 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – August 2010).
George Pereira 1964 Treasurer and Principal Financial Officer, Schwab Funds Treasurer and Chief Financial Officer, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust and Laudus Institutional Trust since 2006)	Senior Vice President and Chief Financial Officer (Nov. 2004 – present), Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present) and Schwab ETFs (Oct. 2009 – present); Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present).

67

 Officers of the Trust (continued)

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
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Equities, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009).
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Senior Managing Director, Global Head of Active Fixed-Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies Loomis, Sayles & Company (April 2006 – Jan. 2008).
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President (Sept. 2011 – present), Vice President (March 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present), Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds 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, Laudus Trust and Laudus Institutional Trust since 2005)	Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (March 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary, Schwab ETFs (Oct. 2009 – present).

1	Trustees remain in office until they resign, retire or are removed by shareholder vote. The Schwab and Laudus Funds’ retirement policy requires that independent trustees retire at age 72 or after twenty years as a trustee, whichever comes first. In addition, the retirement policy requires any independent trustee of Schwab Funds or Laudus Funds to retire from all Boards upon their required retirement date from either Board.
2	Mr. Schwab and Mr. Bettinger are Interested Trustees because they own stock of The Charles Schwab Corporation, the parent company of the investment adviser.
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 Boards.

.

68 

Glossary

asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.

asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.

Barclays U.S. Aggregate Bond Index A broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-back securities (agency fixed-rate and hybrid ARM passthroughs), asset-backed securities, and commercial mortgage-backed securities.

Barclays U.S. Treasury Bills 1 − 3 Months Index An index that includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value.

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.

cap, capitalization See “market cap.”

capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.

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.

FTSE RAFI Developed ex US 1000 Index An index that is designed to track the performance of the largest listed companies domiciled in developed international markets (excluding the U.S.), selected based on the following four fundamental measures: dividends, cash flows, sales and book value.

FTSE RAFI Developed ex US Mid Small 1500 Index An index that is designed to track the performance of small and mid capitalization equities of companies domiciled in developed international markets (excluding the U.S.), selected based on the following four fundamental measures: dividends, cash flows, sales and book value.

FTSE RAFI Emerging Index An index that is designed to track the performance of the largest emerging market equities, selected based on the following four fundamental measures: dividends, cash flows, sales and book value.

FTSE RAFI US 1000 Index An index that is designed to track the performance of the largest listed U.S. companies, selected based on the following four fundamental measures: dividends, cash flows, sales and book value.

FTSE RAFI US Mid Small 1500 Index An index that is designed to track the performance of small and medium-sized listed U.S. companies, selected based on the following four fundamental measures: dividends, cash flows, sales and book value.

Fundamental Developed ex-U.S. Large Company Spliced Index An internally calculated index, comprised of the FTSE RAFI Developed ex-US 1000 Index from inception of the fund until the close of business on October 18, 2012 and the Russell Fundamental Developed ex-U.S. Large Company Index (Net) from October 19, 2012 forward.

Fundamental Developed ex-U.S. Small Company Spliced Index An internally calculated index, comprised of the FTSE RAFI Developed ex-US Mid Small 1500 Index from inception of the fund until the close of business on October 18, 2012 and the Russell Fundamental Developed ex-US Small Company Index (Net) from October 19, 2012 forward.

Fundamental Emerging Markets Large Company Spliced Index An internally calculated index, comprised of the FTSE RAFI Emerging Index from inception of the fund until the close of business on October 18, 2012 and the Russell Fundamental Emerging Markets Large Company Index (Net) from October 19, 2012 forward.

Fundamental U.S. Large Company Spliced Index An internally calculated index, comprised of the FTSE RAFI US 1000 Index from inception of the fund until the close of business on October 18, 2012 and the Russell Fundamental U.S. Large Company Index from October 19, 2012 forward.

Fundamental U.S. Small Company Spliced Index An internally calculated index, comprised of the FTSE RAFI US Mid Small 1500 Index from inception of the fund until the close of business on October 18, 2012 and the Russell Fundamental U.S. Small Company Index from October 19, 2012 forward.

market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.

MSCI EAFE (Europe, Australasia, Far East) Index A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.

net asset value (NAV) The value of one share of a 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.

69

price-to-book ratio (P/B)  The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.

price-to-earnings ratio (P/E)  The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.

restricted and illiquid securities Restricted securities are securities that are subject to legal restrictions on their sale. Restricted securities generally can be sold in privately negotiated transactions, pursuant to an exemption from registration under the Securities Act of1933 (the “1933 Act”), or in a registered public offering. Certain restricted securities, such as Section 4(a)(2) commercial paper and Rule 144A securities under the 1933 Act, may be considered to be liquid if they meet the criteria for liquidity established by the Board. Illiquid securities generally are any securities that cannot be disposed of promptly and in the ordinary course of business at approximately the amount at which a fund has valued the instruments. The liquidity of a fund’s investments is monitored under the supervision and direction of the Board. Investments currently not considered liquid include repurchase agreements not maturing within seven days and certain restricted securities.

return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.

Russell 2000 Index An index that measures the performance of the small-cap segment of the U.S. equity universe. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

Russell Fundamental Developed ex-U.S. Large Company Index An index that ranks companies in the Russell Developed ex-U.S. Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores are in the top 87.5% of the Russell Developed ex-U.S. Index. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. The Russell Developed ex-U.S. Index measures the performance of the largest investable securities in developed countries globally, excluding companies assigned to the United States.

Russell Fundamental Developed ex-U.S. Small Company Index An index that ranks companies in the Russell Developed ex-U.S. Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores are in the bottom 12.5% of the Russell Developed ex-U.S. Index. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. The Russell Developed ex-U.S. Index measures the performance of the largest investable securities in developed countries globally, excluding companies assigned to the United States.

Russell Fundamental Emerging Markets Large Company Index An index that ranks companies in the Russell Emerging Markets Index by measures of fundamental size and tracks the performance of those companies whose fundamental scores are in the top 87.5% of the Russell Emerging Markets Index. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. The Russell Emerging Markets Index measures the performance of the investable securities in emerging countries globally.

Russell Fundamental U.S. Large Company Index An index that ranks companies in the Russell 3000 Index by fundamental measures of size, and tracks the performance of those companies whose fundamental scores are in the top 87.5% of the Russell 3000 Index. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market.

Russell Fundamental U.S. Small Company Index An index that ranks companies in the Russell 3000 Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores are in the bottom 12.5% of the Russell 3000 Index. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market.

S&P 500 Index A market capitalization index that is designed to measure the performance of 500 leading publicly held companies in leading industries of the U.S. economy.

stock A share of ownership, or equity, in the issuing company.

total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.

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.

70 

Notes

Notes

Schwab Funds^® offers you an extensive family of mutual funds, each one based on a clearly defined investment approach and using disciplined management strategies. The list at right shows all currently available Schwab Funds.

Whether you are an experienced investor or just starting out, Schwab Funds can help you achieve your financial goals. An investor should consider a fund’s investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information can be found in the fund’s prospectus. Please call 1-800-435-4000 for a prospectus and brochure 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.csimfunds.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-800-435-4000.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.csimfunds.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.

The Schwab Funds Family^®

Stock Funds

Schwab Core Equity Fund^tm

Schwab Dividend Equity Fund^tm

Schwab Large-Cap Growth Fund^tm

Schwab Small-Cap Equity Fund^tm

Schwab Hedged Equity Fund^tm

Schwab Financial Services Fund^tm

Schwab Health Care Fund^tm

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^tm

Schwab^® S&P 500 Index Fund

Schwab 1000 Index^® Fund

Schwab Small-Cap Index Fund^®

Schwab Total Stock Market Index Fund^®

Schwab International Index Fund^®

Asset Allocation Funds

Schwab Balanced Fund^tm

Schwab MarketTrack All Equity Portfolio^tm

Schwab MarketTrack Growth Portfolio^tm

Schwab MarketTrack Balanced Portfolio^tm

Schwab MarketTrack Conservative Portfolio^tm

Schwab Target 2010 Fund

Schwab Target 2015 Fund

Schwab Target 2020 Fund

Schwab Target 2025 Fund

Schwab Target 2030 Fund

Schwab Target 2035 Fund

Schwab Target 2040 Fund

Schwab Target 2045 Fund

Schwab Target 2050 Fund

Schwab Target 2055 Fund

Schwab^® Monthly Income Fund – Moderate Payout

Schwab^® Monthly Income Fund – Enhanced Payout

Schwab^® Monthly Income Fund – Maximum Payout

Bond Funds

Schwab Short-Term Bond Market Fund^tm

Schwab Intermediate-Term Bond Fund^tm

Schwab Total Bond Market Fund^tm

Schwab GNMA Fund^tm

Schwab^® Treasury Inflation Protected Securities Index Fund

Schwab Tax-Free Bond Fund^tm

Schwab California Tax-Free Bond Fund^tm

Schwab Money Funds

Schwab offers an array of money market funds¹. Choose from taxable or tax-advantaged alternatives. Many can be linked to your eligible Schwab account to “sweep” cash balances automatically, subject to availability, when you’re between investments. Or, for your larger cash reserves, choose one of our Value Advantage Investments^®.

¹ Investments in money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency and, although they seek to preserve the value of your investment at $1 per share, it is possible to lose money.

Investment Adviser

Charles Schwab Investment Management, Inc.

211 Main Street, San Francisco, CA 94105

Schwab Funds^®

1-800-407-0256

This report is not authorized for distribution to prospective investors

unless preceded or accompanied by a current prospectus.

^© 2015 Charles Schwab & Co., Inc. All rights reserved.

Member SIPC^®

Printed on recycled paper.

MFR37675-08

00143421

Semiannual report dated April 30, 2015, enclosed.

COMMAND PERFORMANCE^TM

Laudus MarketMasters Funds^tm

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Semiannual Report
April 30, 2015

COMMAND PERFORMANCE^TM

Laudus MarketMasters Funds^tm

Laudus Small-Cap MarketMasters Fund^tm

Laudus International MarketMasters Fund^tm

This page is intentionally left blank.

Two distinct Funds, each combining the expertise of leading

investment managers with CSIM’s overall supervision.

In This Report

Performance at a Glance	2
From the President	3
Fund Management	5
Performance and Fund Facts
Laudus Small-Cap MarketMasters Fund	6
Laudus International MarketMasters Fund	8
Fund Expenses	10
Financial Statements and Portfolio Holdings
Laudus Small-Cap MarketMasters Fund	11
Laudus International MarketMasters Fund	33
Financial Notes	59
Trustees and Officers	69
Glossary	73

Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: Charles Schwab & Co., Inc. (Schwab).

The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS), which was developed by, and is the exclusive property of, MSCI and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab. The Industry classifications used in the schedules of Portfolio Holdings are sub-categories of Sector classifications.

Performance at a Glance

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment 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.csimfunds.com.

Total Return for the 6 Months Ended April 30, 2015
Laudus Small-Cap MarketMasters Fund
Investor Shares (Ticker Symbol: SWOSX)	5.74%
Select Shares® (Ticker Symbol: SWMSX)	5.82%	*
Russell 2000® Index	4.65%
Fund Category: Morningstar Small Growth	5.80%
Performance Details	pages 6-7
Laudus International MarketMasters Fund
Investor Shares1 (Ticker Symbol: SWOIX)	6.19%	*
Select Shares®1 (Ticker Symbol: SWMIX)	6.23%	*
MSCI EAFE® Index (Net)2	6.81%
Fund Category: Morningstar Foreign Large Growth	6.54%
Performance Details	pages 8-9

Minimum Initial Investment3
Investor Shares	$	100
Select Shares®	$	50,000

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.

Fund 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.

Small-company stocks are subject to greater volatility than other asset categories.

Foreign securities can involve risks such as political and economic instability and currency risk. These risks may be greater in emerging markets.

*	Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semi-annual reports.
1	The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
2	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
3	Please see the funds’ prospectus for further detail and eligibility requirements.

2 Laudus MarketMasters Funds

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.

Dear Shareholder,

At Charles Schwab Investment Management (CSIM), we design our investment products to serve as part of the foundation of an investor’s portfolio. Our Laudus MarketMasters Funds utilize strategies from leading investment managers into single funds, with each fund providing diversification across multiple investment styles. CSIM provides ongoing monitoring of the investment managers, who are rigorously evaluated based on portfolio characteristics, investment style and consistency, discipline, and risk measures.

For the six-month reporting period ended April 30, 2015, the funds generated returns that reflected a positive performance by both U.S. small-cap stocks and by stocks in developed international markets. In the U.S., favorable corporate earnings reports contributed to consumer confidence, helping several indices to reach record highs during the reporting period. The Federal Reserve maintained historically low short-term interest rates, though speculation around the timing of a potential increase contributed to heightened market volatility.

Outside the U.S., developed markets showed significant improvement over the reporting period, as geopolitical tensions in Russia began to subside and Greece reached a point of relative stability. The U.S. dollar remained strong as many central banks, including the European Central Bank and the Bank of Japan, increased economic measures to stimulate growth and combat threats of deflation. When the U.S. dollar rises against foreign currencies, returns on overseas investments will generally be reduced in U.S. dollar terms. However,

 Asset Class Performance Comparison % returns during the six months ended 4/30/2015

This graph compares the performance of various asset classes during the report period. Final performance figures for the period are in the key below.

	4.40%	S&P 500® Index: measures U.S. large-cap stocks
	4.65%	Russell 2000® Index: measures U.S. small-cap stocks
	6.81%	MSCI EAFE® Index (Net): measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East
	2.06%	Barclays U.S. Aggregate Bond Index: measures the U.S. bond market
	0.01%	Barclays U.S. Treasury Bills 1-3 Months Index: measures short-term U.S. Treasury obligations

Index figures assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Past performance is not an indication of future results.

For index definitions, please see the Glossary.

Data source: Index provider websites and CSIM.

Nothing in this report represents a recommendation of a security by the investment adviser.

Management views and portfolio holdings may have changed since the report date.

Laudus MarketMasters Funds 3

From the President continued

For the six-month reporting period ended April 30, 2015, the funds generated returns that reflected a positive performance by both U.S. small-cap stocks and by stocks in developed international markets.

as international markets performed particularly well this reporting period, returns on many of these investments were positive even when translated into U.S. dollars.

During the reporting period, small-cap stocks generally outperformed large-cap stocks, as the strength of the U.S. dollar weighed more heavily on large-cap stocks due to their greater percentage of overseas revenue. In general, international developed stocks outperformed U.S. stocks, and growth stocks outperformed value stocks. Reflecting these conditions, the MSCI EAFE Index, which broadly represents the performance of international stocks, returned 6.8%¹ for the six-month reporting period, and the Russell 2000 Index, which broadly represents the performance of U.S. small-cap stocks, returned 4.7%.

For more information about the performance, holdings, and portfolio characteristics of the Laudus MarketMasters Funds, please continue reading this report. In addition, you can find further details about these funds by visiting our new website at www.csimfunds.com, which provides improved functionality, enhanced design, and access to industry insights. We are also happy to hear from you at 1-800-435-4000.

Sincerely,

For full definitions of the referenced indices, please see the Glossary

¹ The total return cited is calculated net of foreign withholding taxes.

4 Laudus MarketMasters Funds

Fund Management

Omar Aguilar, Ph.D. Senior Vice President and Chief Investment Officer of Equities, has overall responsibility for all aspects of the management of the funds. Prior to joining CSIM in 2011, Mr. Aguilar was with Financial Engines, where he was responsible for managing assets from leading retirement plan sponsors in the defined contribution market. Prior to joining Financial Engines in 2009, Mr. Aguilar was the head of quantitative equity for ING Investment Management, where he was responsible for building and developing the firm’s quantitative equity group. He joined ING in 2004 from Lehman Brothers, where he served as the head of quantitative research for its alternative investment management business. Prior to that, he was a director of quantitative research and portfolio manager with Merrill Lynch Investment Management and Bankers Trust.

Laudus MarketMasters Funds 5

Laudus Small-Cap MarketMasters Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Fund and Inception Date	6 Months				1 Year			5 Years			10 Years
Investor Shares (9/16/97)		5.74	%			9.64	%		10.44	%	7.58%
Select Shares® (6/9/04)		5.82	%	*		9.78	%		10.60	%	7.75%
Russell 2000® Index		4.65	%			9.71	%		12.73	%	9.18%
Fund Category: Morningstar Small Growth		5.80	%			11.34	%		13.62	%	9.56%

Fund Expense Ratios³: Investor Shares: Net 1.35%; Gross 1.56% / Select Shares: Net 1.20%; Gross 1.51%

 Investment Managers and Allocations⁴

		% of
Investment Managers	Investment Style	Net Assets
Wellington Management Company, LLP	Small-Cap Value		45.3	%
BMO Asset Management Corp.	Small-Cap Growth		44.4	%
Mellon Capital Management Corp.	Small-Cap Blend		9.6	%
Cash and other assets	—		0.7	%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

*	Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semi-annual reports.
1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	For more information about each of the investment manager’s investment styles, refer to the fund’s prospectus.

6 Laudus MarketMasters Funds

 Laudus Small-Cap MarketMasters Fund

Performance and Fund Facts as of 04/30/15 continued

 Statistics

Number of Holdings	1,826
Weighted Average Market Cap (millions)	$1,952
Price/Earnings Ratio (P/E)	53.6
Price/Book Ratio (P/B)	2.2
Portfolio Turnover Rate1	23%

 Sector Weightings % of Investments

Information Technology	18.9%
Industrials	18.3%
Health Care	16.3%
Financials	15.7%
Consumer Discretionary	11.3%
Energy	5.1%
Materials	4.7%
Telecommunication Services	2.0%
Consumer Staples	1.8%
Utilities	1.7%
Other	4.2%
Total	100.0%

 Top Equity Holdings % of Net Assets²

inContact, Inc.	1.6%
Belden, Inc.	1.5%
Mueller Industries, Inc.	1.4%
Shutterstock, Inc.	1.4%
Helen of Troy Ltd.	1.3%
New Senior Investment Group, Inc.	1.3%
G&K Services, Inc., Class A	1.2%
MAXIMUS, Inc.	1.2%
Webster Financial Corp.	1.2%
The Rubicon Project, Inc.	1.1%
Total	13.2%

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

Small-company stocks are subject to greater volatility than many other asset classes.

1	Not annualized.
2	This list is not a recommendation of any security by the investment adviser.

Laudus MarketMasters Funds 7

Laudus International MarketMasters Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Fund and Inception Date	6 Months				1 Year			5 Years			10 Years
Investor Shares (10/16/96)		6.19	%	*		0.66	%		8.94	%	8.18%
Select Shares® (4/2/04)		6.23	%	*		0.83	%		9.09	%	8.33%
MSCI EAFE® Index (Net)3		6.81	%			1.66	%		7.40	%	5.62%
MSCI EAFE® Index (Gross)		7.06	%			2.10	%		7.89	%	6.10%
Fund Category: Morningstar Foreign Large Growth		6.54	%			4.70	%		7.87	%	6.42%

Fund Expense Ratios⁴: Investor Shares: Net 1.40%; Gross 1.59% / Select Shares: Net 1.25%; Gross 1.47%

 Investment Managers and Allocations⁵

		% of
Investment Managers	Investment Style	Net Assets
American Century Investment Management, Inc.	International Small-Cap Growth		26.4	%
Harris Associates L.P.	International Large-Cap Value		23.4	%
William Blair & Company, LLC	International Multi-Cap Growth		22.2	%
Mondrian Investment Partners Limited	International Small-Cap Value		21.5	%
Mellon Capital Management Corp.	International Blend		5.0	%
Cash and other assets	—		1.5	%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

The fund’s performance relative to the index may be affected by fair-value pricing. See financial note 2 for more information.

*	Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semi-annual reports.
1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
4	As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
5	For more information about each of the investment manager’s investment styles, refer to the fund’s prospectus.

8 Laudus MarketMasters Funds

 Laudus International MarketMasters Fund

Performance and Fund Facts as of 04/30/15 continued

 Statistics

Number of Holdings	1,190
Weighted Average Market Cap (millions)	$28,520
Price/Earnings Ratio (P/E)	21.3
Price/Book Ratio (P/B)	2.4
Portfolio Turnover Rate1	31%

 Sector Weightings % of Investments

Industrials	21.4%
Financials	20.4%
Consumer Discretionary	19.4%
Information Technology	10.3%
Materials	7.1%
Health Care	6.8%
Consumer Staples	5.7%
Energy	3.1%
Telecommunication Services	1.4%
Utilities	1.0%
Other	3.4%
Total	100.0%

 Top Equity Holdings % of Net Assets²

Credit Suisse Group AG – Reg’d	1.3%
BNP Paribas S.A.	1.0%
Intesa Sanpaolo S.p.A.	1.0%
Samsung Electronics Co., Ltd.	0.9%
Toyota Motor Corp.	0.9%
Allianz SE – Reg’d	0.9%
Honda Motor Co., Ltd.	0.9%
Cie Financiere Richemont S.A. – Reg’d	0.9%
Bayerische Motoren Werke AG	0.8%
Daiwa Securities Group, Inc.	0.8%
Total	9.4%

 Country Weightings % of Investments

United Kingdom	17.5%
Japan	15.1%
Germany	8.4%
France	8.3%
Switzerland	7.3%
Canada	4.8%
Australia	3.7%
United States	3.4%
China	3.4%
Sweden	3.3%
Italy	3.0%
Singapore	2.6%
Netherlands	2.5%
Other Countries	16.7%
Total	100.0%

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.

1	Not annualized.
2	This list is not a recommendation of any security by the investment adviser.

Laudus MarketMasters Funds 9

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 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 November 1, 2014 and held through April 30, 2015.

Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ¸ $1,000 = 8.6), then multiply the result by the number given for your fund or share class 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 or share class’ 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.

					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio1		Account Value		(Net of Expenses)		During Period2
	(Annualized)		at 11/1/14		at 4/30/15		11/1/14–4/30/15
Laudus Small-Cap MarketMasters Fund
Investor Shares
Actual Return		1.35%	$	1,000.00	$	1,057.40	$	6.89
Hypothetical 5% Return		1.35%	$	1,000.00	$	1,018.11	$	6.76
Select Shares
Actual Return		1.20%	$	1,000.00	$	1,058.80	$	6.13
Hypothetical 5% Return		1.20%	$	1,000.00	$	1,018.85	$	6.01
Laudus International MarketMasters Fund
Investor Shares
Actual Return		1.40%	$	1,000.00	$	1,062.30	$	7.16
Hypothetical 5% Return		1.40%	$	1,000.00	$	1,017.86	$	7.00
Select Shares
Actual Return		1.25%	$	1,000.00	$	1,063.20	$	6.39
Hypothetical 5% Return		1.25%	$	1,000.00	$	1,018.60	$	6.26

1	Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights.
2	Expenses for each fund or share class are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days of the period, and divided by the 365 days of the fiscal year.

10 Laudus MarketMasters Funds

Laudus Small-Cap MarketMasters Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
Investor Shares	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		18.02			17.28			13.14			11.99			11.52			9.40
Income (loss) from investment operations:
Net investment income (loss)1		0.17			(0.05	)		(0.02	)		(0.10	)		(0.09	)		(0.08	)
Net realized and unrealized gains (losses)		0.83			0.79			4.16			1.25			0.56			2.20
Total from investment operations		1.00			0.74			4.14			1.15			0.47			2.12
Less distributions:
Distributions from net investment income		(0.03	)		—			—			—			—			—
Distributions from net realized gains		(0.35	)		—			—			—			—			—
Total distributions		(0.38	)		—			—			—			—			—
Net asset value at end of period		18.64			18.02			17.28			13.14			11.99			11.52
Total return (%)		5.74	2		4.28			31.51			9.59			4.08			22.55
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		1.35	3		1.35			1.35			1.42	4		1.46			1.46
Gross operating expenses		1.55	3		1.56			1.59			1.59			1.51			1.50
Net investment income (loss)		1.92	3		(0.26	)		(0.16	)		(0.79	)		(0.70	)		(0.72	)
Portfolio turnover rate		23	2		79			97			144			95			78
Net assets, end of period ($ x 1,000,000)		70			70			76			65			62			68

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
Select Shares	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		18.33			17.56			13.33			12.14			11.64			9.49
Income (loss) from investment operations:
Net investment income (loss)1		0.18			(0.02	)		(0.00	)5		(0.08	)		(0.07	)		(0.06	)
Net realized and unrealized gains (losses)		0.86			0.79			4.23			1.27			0.57			2.21
Total from investment operations		1.04			0.77			4.23			1.19			0.50			2.15
Less distributions:
Distributions from net investment income		(0.06	)		—			—			—			—			—
Distributions from net realized gains		(0.35	)		—			—			—			—			—
Total distributions		(0.41	)		—			—			—			—			—
Net asset value at end of period		18.96			18.33			17.56			13.33			12.14			11.64
Total return (%)		5.88	2		4.39			31.73			9.80			4.30			22.66
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		1.20	3		1.20			1.20			1.27	4		1.31			1.32	6
Gross operating expenses		1.50	3		1.51			1.53			1.51			1.45			1.45
Net investment income (loss)		1.99	3		(0.13	)		(0.03	)		(0.60	)		(0.54	)		(0.58	)
Portfolio turnover rate		23	2		79			97			144			95			78
Net assets, end of period ($ x 1,000,000)		127			122			113			88			219			337

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

⁴ Effective June 6, 2012, the net operating expense limitation was lowered. The ratio presented for period ended 10/31/12 is a blended ratio.

⁵ Per-share amount was less than $0.01.

⁶ The ratio of net operating expenses would have been 1.31%, if certain non-routine expense had not been incurred.

See financial notes 11

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15-20 days after calendar quarters on the fund’s website at www.csimfunds.com/laudusfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	96	.2%	Common Stock		162,091,495		190,004,547
	4	.2%	Other Investment Companies		8,256,591		8,254,521
	0	.0%	Rights		2,814		2,814
	0	.0%	Warrants		—		—
	0	.0%	Short-Term Investment		6,000		6,000
	100	.4%	Total Investments		170,356,900		198,267,882
	(0	.4%)	Other Assets and Liabilities, Net				(846,206	)
	100	.0%	Net Assets				197,421,676

	Number		Value
Security	of Shares		($)
Common Stock 96.2% of net assets
Automobiles & Components 0.4%
American Axle & Manufacturing Holdings, Inc. *		953		23,758
Cooper Tire & Rubber Co.		796		33,822
Cooper-Standard Holding, Inc. *		71		4,333
Dana Holding Corp.		1,825		39,365
Dorman Products, Inc. *		200		9,366
Drew Industries, Inc.		170		9,634
Federal-Mogul Holdings Corp. *		125		1,613
Fuel Systems Solutions, Inc. *		223		2,475
Gentherm, Inc. *		320		16,874
Modine Manufacturing Co. *		723		8,886
Motorcar Parts of America, Inc. *		18,492		540,521
Remy International, Inc.		164		3,649
Spartan Motors, Inc.		271		1,276
Standard Motor Products, Inc.		198		7,484
Stoneridge, Inc. *		155		1,866
Superior Industries International, Inc.		233		4,334
Tenneco, Inc. *		673		39,337
Tower International, Inc. *		122		3,155
Winnebago Industries, Inc.		324		6,710
				758,458
Banks 7.3%
1st Source Corp.		167		5,197
American National Bankshares, Inc.		73		1,643
Ameris Bancorp		222		5,548
Ames National Corp.		74		1,846
Anchor BanCorp Wisconsin, Inc. *		277		10,016
Arrow Financial Corp.		69		1,798
Astoria Financial Corp.		1,322		17,411
Banc of California, Inc.		386		4,786
BancFirst Corp.		49		2,828
Banco Latinoamericano de Exportaciones, S.A., Class E		479		15,218
BancorpSouth, Inc.		1,304		31,570
Bank Mutual Corp.		891		6,406
Bank of Marin Bancorp		43		2,168
Bank of the Ozarks, Inc.		722		27,985
BankFinancial Corp.		420		5,376
Banner Corp.		324		14,651
BBCN Bancorp, Inc.		963		13,665
Beneficial Bancorp, Inc. *		324		3,758
Berkshire Hills Bancorp, Inc.		188		5,266
BNC Bancorp		198		3,614
BofI Holding, Inc. *		3,863		354,662
Boston Private Financial Holdings, Inc.		1,120		14,728
Bridge Bancorp, Inc.		294		7,429
Bridge Capital Holdings *		106		2,867
Brookline Bancorp, Inc.		662		7,130
Bryn Mawr Bank Corp.		73		2,197
Camden National Corp.		47		1,801
Capital Bank Financial Corp., Class A *		90		2,441
Capital City Bank Group, Inc.		144		2,026
Capitol Federal Financial, Inc.		1,471		17,652
Cardinal Financial Corp.		319		6,581
Cascade Bancorp *		518		2,497
Cathay General Bancorp		913		26,094
CenterState Banks, Inc.		196		2,383
Central Pacific Financial Corp.		158		3,618
Century Bancorp, Inc., Class A		48		1,854
Charter Financial Corp.		168		2,011
Chemical Financial Corp.		186		5,747
Citizens & Northern Corp.		277		5,496
City Holding Co.		117		5,378
Clifton Bancorp, Inc.		136		1,856
CNB Financial Corp.		102		1,752
CoBiz Financial, Inc.		304		3,651
Columbia Banking System, Inc.		609		18,087
Community Bank System, Inc.		526		18,384
Community Trust Bancorp, Inc.		185		5,935
ConnectOne Bancorp, Inc.		278		5,343
CU Bancorp *		137		2,839
Customers Bancorp, Inc. *		245		6,176
CVB Financial Corp.		989		15,478
Dime Community Bancshares, Inc.		304		4,840
Eagle Bancorp, Inc. *		294		10,837
Enterprise Bancorp, Inc.		99		2,125
Enterprise Financial Services Corp.		341		7,001
Essent Group Ltd. *		369		9,207
EverBank Financial Corp.		771		14,317
F.N.B. Corp.		2,136		28,345
Federal Agricultural Mortgage Corp., Class C		120		3,773
Financial Institutions, Inc.		161		3,792
First Bancorp (North Carolina)		173		2,808
First BanCorp (Puerto Rico) *		1,156		6,948
First Bancorp, Inc.		103		1,718
First Busey Corp.		93,469		583,247

12 See financial notes

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
First Business Financial Services, Inc.		62		2,816
First Citizens BancShares, Inc., Class A		86		20,669
First Commonwealth Financial Corp.		784		7,072
First Community Bancshares, Inc.		299		5,011
First Connecticut Bancorp, Inc.		350		5,173
First Defiance Financial Corp.		73		2,555
First Financial Bancorp		612		10,563
First Financial Bankshares, Inc.		766		22,183
First Financial Corp.		124		4,210
First Merchants Corp.		290		6,545
First Midwest Bancorp, Inc.		86,870		1,485,477
First NBC Bank Holding Co. *		118		4,151
First Niagara Financial Group, Inc.		95,900		872,211
FirstMerit Corp.		2,098		40,638
Flagstar Bancorp, Inc. *		177		3,041
Flushing Financial Corp.		42,102		806,674
Fox Chase Bancorp, Inc.		185		3,077
German American Bancorp, Inc.		77		2,203
Glacier Bancorp, Inc.		608		16,015
Great Southern Bancorp, Inc.		188		7,411
Great Western Bancorp, Inc.		15,400		336,798
Guaranty Bancorp		155		2,440
Hampton Roads Bankshares, Inc. *		883		1,572
Hancock Holding Co.		33,190		966,161
Hanmi Financial Corp.		351		7,469
Heartland Financial USA, Inc.		62		2,133
Heritage Commerce Corp.		248		2,210
Heritage Financial Corp.		496		8,382
Heritage Oaks Bancorp		282		2,248
Hilltop Holdings, Inc. *		738		14,841
Home BancShares, Inc.		35,244		1,158,823
HomeTrust Bancshares, Inc. *		218		3,410
Horizon Bancorp		84		1,961
Hudson Valley Holding Corp.		100		2,474
IBERIABANK Corp.		312		19,441
Independent Bank Corp., Massachusetts		171		7,134
Independent Bank Corp., Michigan		256		3,389
Independent Bank Group, Inc.		88		3,388
International Bancshares Corp.		59,977		1,558,202
Investors Bancorp, Inc.		3,660		43,334
Kearny Financial Corp. *		167		2,228
Ladder Capital Corp., Class A		124		2,175
Lakeland Bancorp, Inc.		280		3,178
Lakeland Financial Corp.		158		6,170
LegacyTexas Financial Group, Inc.		554		14,099
LendingTree, Inc. *		70		3,852
MainSource Financial Group, Inc.		122		2,349
MB Financial, Inc.		37,609		1,133,159
Mercantile Bank Corp.		158		3,132
Merchants Bancshares, Inc.		58		1,709
Meridian Bancorp, Inc. *		465		5,975
Meta Financial Group, Inc.		84		3,436
Metro Bancorp, Inc.		247		6,333
MGIC Investment Corp. *		3,588		37,387
MidSouth Bancorp, Inc.		214		2,776
MidWestOne Financial Group, Inc.		70		2,048
National Bank Holdings Corp., Class A		361		6,859
National Bankshares, Inc.		94		2,727
National Penn Bancshares, Inc.		1,336		13,894
NBT Bancorp, Inc.		552		13,331
NewBridge Bancorp		271		2,182
NMI Holdings, Inc., Class A *		429		3,423
Northfield Bancorp, Inc.		443		6,393
Northrim BanCorp, Inc.		74		1,844
Northwest Bancshares, Inc.		106,188		1,307,174
OceanFirst Financial Corp.		300		5,034
OFG Bancorp		400		5,636
Old National Bancorp		1,439		19,657
Oritani Financial Corp.		482		7,182
Pacific Continental Corp.		150		1,935
Palmetto Bancshares, Inc.		123		2,232
Park National Corp.		92		7,596
Park Sterling Corp.		898		6,017
Peapack-Gladstone Financial Corp.		128		2,679
Penns Woods Bancorp, Inc.		41		1,787
PennyMac Financial Services, Inc., Class A *		80		1,510
Peoples Bancorp, Inc.		147		3,409
Peoples Financial Services Corp.		59		2,318
Pinnacle Financial Partners, Inc.		421		20,061
Preferred Bank		104		2,931
PrivateBancorp, Inc.		883		32,733
Prosperity Bancshares, Inc.		819		43,685
Provident Financial Services, Inc.		615		11,070
Radian Group, Inc.		2,272		40,578
Renasant Corp.		277		8,230
Republic Bancorp, Inc., Class A		75		1,784
Republic First Bancorp, Inc. *		386		1,390
S&T Bancorp, Inc.		199		5,353
Sandy Spring Bancorp, Inc.		230		5,994
Sierra Bancorp		117		1,916
Simmons First National Corp., Class A		206		9,013
South State Corp.		184		12,460
Southside Bancshares, Inc.		334		9,122
Southwest Bancorp, Inc.		261		4,497
Square 1 Financial, Inc., Class A *		56		1,448
State Bank Financial Corp.		630		12,606
Sterling Bancorp		634		8,229
Stock Yards Bancorp, Inc.		68		2,366
Stonegate Bank		100		2,864
Stonegate Mortgage Corp. *		137		1,471
Suffolk Bancorp		99		2,372
Sun Bancorp, Inc. *		108		2,044
Susquehanna Bancshares, Inc.		2,342		31,476
Talmer Bancorp, Inc., Class A		100		1,538
Territorial Bancorp, Inc.		73		1,686
Texas Capital Bancshares, Inc. *		529		27,857
The Bancorp, Inc. *		650		6,331
The Bank of Kentucky Financial Corp.		63		3,017
The First of Long Island Corp.		76		1,902
Tompkins Financial Corp.		76		3,963
Towne Bank		375		6,206
TriCo Bancshares		237		5,527
TriState Capital Holdings, Inc. *		128		1,600
TrustCo Bank Corp.		1,765		11,773
Trustmark Corp.		773		18,397
UMB Financial Corp.		369		18,373
Umpqua Holdings Corp.		2,104		35,789
Union Bankshares Corp.		492		10,706
United Bankshares, Inc.		674		25,329
United Community Banks, Inc.		452		8,412

See financial notes 13

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
United Community Financial Corp.		598		3,223
United Financial Bancorp, Inc.		505		6,439
Univest Corp. of Pennsylvania		90		1,756
Valley National Bancorp		1,742		16,427
Walker & Dunlop, Inc. *		136		2,603
Washington Federal, Inc.		1,209		26,114
Washington Trust Bancorp, Inc.		60		2,221
Waterstone Financial, Inc.		425		5,415
Webster Financial Corp.		61,868		2,216,730
WesBanco, Inc.		268		8,445
West Bancorp, Inc.		141		2,673
Westamerica Bancorp		297		12,934
Western Alliance Bancorp *		957		29,590
Wilshire Bancorp, Inc.		1,173		12,375
Wintrust Financial Corp.		409		19,935
WSFS Financial Corp.		108		7,686
Yadkin Financial Corp. *		276		5,432
				14,386,228
Capital Goods 9.3%
AAON, Inc.		477		11,434
AAR Corp.		367		11,098
Accuride Corp. *		750		3,060
Actuant Corp., Class A		867		20,652
Advanced Drainage Systems, Inc.		152		4,256
Aegion Corp. *		602		11,089
Aerojet Rocketdyne Holdings, Inc. *		786		15,453
Aerovironment, Inc. *		310		7,936
Aircastle Ltd.		931		22,325
Alamo Group, Inc.		42		2,595
Albany International Corp., Class A		48,949		1,918,801
Altra Industrial Motion Corp.		222		5,854
Ameresco, Inc., Class A *		500		3,360
American Railcar Industries, Inc.		62		3,288
American Science & Engineering, Inc.		132		4,939
American Woodmark Corp. *		70		3,549
Apogee Enterprises, Inc.		320		16,838
Applied Industrial Technologies, Inc.		463		19,340
Argan, Inc.		281		9,079
Astec Industries, Inc.		123		5,176
Astronics Corp. *		283		19,049
AZZ, Inc.		190		8,814
Barnes Group, Inc.		27,920		1,119,592
Beacon Roofing Supply, Inc. *		500		14,860
Blount International, Inc. *		550		7,293
Briggs & Stratton Corp.		643		12,571
Builders FirstSource, Inc. *		115,847		1,478,208
CAI International, Inc. *		97		2,311
Capstone Turbine Corp. *		4,521		2,840
Chart Industries, Inc. *		355		14,395
CIRCOR International, Inc.		11,836		646,719
CLARCOR, Inc.		459		29,835
Columbus McKinnon Corp.		79		2,003
Comfort Systems USA, Inc.		363		7,510
Commercial Vehicle Group, Inc. *		186		1,071
Continental Building Products, Inc. *		21,760		478,938
Cubic Corp.		36,200		1,794,796
Curtiss-Wright Corp.		560		40,914
DigitalGlobe, Inc. *		893		28,728
Douglas Dynamics, Inc.		430		9,352
DXP Enterprises, Inc. *		129		5,811
Dycom Industries, Inc. *		360		16,553
Dynamic Materials Corp.		194		2,598
EMCOR Group, Inc.		760		33,919
Encore Wire Corp.		156		7,022
EnerSys		560		38,024
Engility Holdings, Inc.		249		6,940
Enphase Energy, Inc. *		247		3,105
EnPro Industries, Inc.		253		16,195
ESCO Technologies, Inc.		34,154		1,253,452
Esterline Technologies Corp. *		346		38,506
Federal Signal Corp.		998		15,689
Franklin Electric Co., Inc.		516		18,659
FreightCar America, Inc.		71		1,852
FuelCell Energy, Inc. *		3,306		4,066
Furmanite Corp. *		517		3,774
GATX Corp.		30,520		1,660,288
Generac Holdings, Inc. *		668		27,849
General Cable Corp.		548		8,938
Gibraltar Industries, Inc. *		269		4,455
Global Power Equipment Group, Inc.		165		2,005
GrafTech International Ltd. *		881		4,264
Graham Corp.		175		4,095
Granite Construction, Inc.		406		14,092
Great Lakes Dredge & Dock Corp. *		907		5,261
Griffon Corp.		404		6,791
H&E Equipment Services, Inc.		411		10,160
Harsco Corp.		634		10,195
HEICO Corp.		735		41,042
Hexcel Corp.		22,070		1,106,810
Hillenbrand, Inc.		654		19,221
Houston Wire & Cable Co.		288		2,719
Hurco Cos., Inc.		62		2,006
Hyster-Yale Materials Handling, Inc.		88		6,454
John Bean Technologies Corp.		331		12,773
Kadant, Inc.		176		8,969
Kaman Corp.		176		7,341
Kratos Defense & Security Solutions, Inc. *		818		4,474
L.B. Foster Co., Class A		39		1,666
Layne Christensen Co. *		350		2,352
Lennox International, Inc.		8,260		875,230
Lindsay Corp.		135		10,691
LSI Industries, Inc.		220		1,971
Luxfer Holdings plc ADR		40,520		520,682
Lydall, Inc. *		323		8,669
Masonite International Corp. *		291		19,264
MasTec, Inc. *		637		11,428
Meritor, Inc. *		825		10,824
Miller Industries, Inc.		263		5,886
Moog, Inc., Class A *		513		35,848
Mueller Industries, Inc.		76,382		2,676,425
Mueller Water Products, Inc., Class A		1,519		14,218
MYR Group, Inc. *		305		8,943
National Presto Industries, Inc.		23		1,439
NCI Building Systems, Inc. *		471		7,291
NN, Inc.		119		2,994
Nortek, Inc. *		45		3,808
Northwest Pipe Co. *		60		1,454
Omega Flex, Inc.		119		3,545
Orion Marine Group, Inc. *		142		1,196
Patrick Industries, Inc. *		67		4,024
PGT, Inc. *		411		4,653

14 See financial notes

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Plug Power, Inc. *		1,567		3,980
Ply Gem Holdings, Inc. *		176		2,390
Polypore International, Inc. *		393		23,014
Powell Industries, Inc.		43		1,427
Power Solutions International, Inc. *		26		1,659
Preformed Line Products Co.		25		1,049
Primoris Services Corp.		21,915		421,425
Proto Labs, Inc. *		174		12,180
Quanex Building Products Corp.		687		13,259
Raven Industries, Inc.		296		5,902
RBC Bearings, Inc.		163		11,897
Rexnord Corp. *		910		24,106
Rush Enterprises, Inc., Class A *		275		7,188
Simpson Manufacturing Co., Inc.		565		18,521
Sparton Corp. *		100		2,577
Standex International Corp.		110		8,896
Sterling Construction Co., Inc. *		183		803
Stock Building Supply Holdings, Inc. *		91		1,672
Sun Hydraulics Corp.		156		6,070
TAL International Group, Inc. *		294		11,331
TASER International, Inc. *		678		20,469
Teledyne Technologies, Inc. *		379		39,784
Tennant Co.		211		13,565
Textainer Group Holdings Ltd.		148		4,484
The ExOne Co. *		84		1,152
The Gorman-Rupp Co.		178		4,826
The Greenbrier Cos., Inc.		274		15,807
The KEYW Holding Corp. *		316		3,049
Thermon Group Holdings, Inc. *		245		5,701
Titan International, Inc.		760		7,896
Titan Machinery, Inc. *		100		1,465
Trex Co., Inc. *		348		16,328
TriMas Corp. *		569		16,029
Tutor Perini Corp. *		459		9,731
Twin Disc, Inc.		175		3,148
Universal Forest Products, Inc.		133		7,358
Vicor Corp. *		299		4,560
Wabash National Corp. *		1,068		14,973
Watsco, Inc.		8,364		1,006,106
Watts Water Technologies, Inc., Class A		325		17,729
Woodward, Inc.		729		34,299
Xerium Technologies, Inc. *		350		6,223
				18,324,817
Commercial & Professional Supplies 8.5%
ABM Industries, Inc.		513		16,442
Acacia Research Corp.		162,063		1,785,934
ACCO Brands Corp. *		154,062		1,212,468
ARC Document Solutions, Inc. *		68,862		588,082
Barrett Business Services, Inc.		134		5,959
Brady Corp., Class A		485		12,916
Casella Waste Systems, Inc., Class A *		875		4,795
CBIZ, Inc. *		487		4,402
CDI Corp.		118		1,610
CECO Environmental Corp.		237		2,794
Civeo Corp.		754		3,521
CRA International, Inc. *		91		2,657
Deluxe Corp.		586		37,944
Ennis, Inc.		287		4,414
Exponent, Inc.		89		7,886
FTI Consulting, Inc. *		33,529		1,378,377
G&K Services, Inc., Class A		34,063		2,404,848
GP Strategies Corp. *		298		9,712
Healthcare Services Group, Inc.		719		21,764
Heidrick & Struggles International, Inc.		102		2,454
Heritage-Crystal Clean, Inc. *		114		1,336
Herman Miller, Inc.		593		16,254
Hill International, Inc. *		388		1,494
HNI Corp.		475		22,154
Huron Consulting Group, Inc. *		307		18,610
ICF International, Inc. *		332		12,782
InnerWorkings, Inc. *		698		4,418
Insperity, Inc.		333		16,037
Interface, Inc.		681		14,798
Kelly Services, Inc., Class A		381		6,256
Kforce, Inc.		489		11,120
Kimball International, Inc., Class B		165		1,670
Knoll, Inc.		699		15,916
Korn/Ferry International		566		17,846
Matthews International Corp., Class A		30,038		1,457,744
McGrath RentCorp		152		5,033
Mistras Group, Inc. *		38,696		694,980
MiX Telematics Ltd. ADR *		64,070		448,490
Mobile Mini, Inc.		380		14,645
MSA Safety, Inc.		375		17,153
Multi-Color Corp.		58		3,641
Navigant Consulting, Inc. *		787		11,380
NL Industries, Inc. *		152		1,120
On Assignment, Inc. *		30,646		1,031,238
Pendrell Corp. *		1,575		1,717
Quad Graphics, Inc.		332		7,151
Resources Connection, Inc.		434		6,840
RPX Corp. *		278		4,326
SP Plus Corp. *		61,010		1,388,588
Steelcase, Inc., Class A		45,403		797,731
Team, Inc. *		331		12,935
Tetra Tech, Inc.		816		22,122
The Advisory Board Co. *		23,582		1,223,670
The Brink’s Co.		692		18,317
The Corporate Executive Board Co.		416		34,873
TriNet Group, Inc. *		105		3,677
TrueBlue, Inc. *		239		6,878
UniFirst Corp.		132		14,946
United Stationers, Inc.		46,802		1,900,629
US Ecology, Inc.		159		7,459
Viad Corp.		380		10,097
VSE Corp.		41		2,917
WageWorks, Inc. *		309		15,574
West Corp.		213		6,592
				16,842,133
Consumer Durables & Apparel 4.7%
Arctic Cat, Inc.		229		8,127
Beazer Homes USA, Inc. *		307		5,376
Black Diamond, Inc. *		183		1,649
Brunswick Corp.		908		45,436
Callaway Golf Co.		1,416		13,707
Cavco Industries, Inc. *		63		4,131
Columbia Sportswear Co.		14,968		938,494

See financial notes 15

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Crocs, Inc. *		945		12,474
CSS Industries, Inc.		196		5,555
Culp, Inc.		98		2,533
Ethan Allen Interiors, Inc.		459		11,117
Flexsteel Industries, Inc.		70		2,521
G-III Apparel Group Ltd. *		152		16,899
Helen of Troy Ltd. *		29,643		2,597,023
Hovnanian Enterprises, Inc., Class A *		808		2,521
Iconix Brand Group, Inc. *		366		9,629
iRobot Corp. *		413		13,389
JAKKS Pacific, Inc. *		490		3,268
Johnson Outdoors, Inc., Class A		67		2,111
KB Home		1,186		17,185
La-Z-Boy, Inc.		492		12,895
LeapFrog Enterprises, Inc. *		1,107		2,502
Libbey, Inc.		233		9,169
Lifetime Brands, Inc.		127		1,848
M.D.C. Holdings, Inc.		499		13,393
M/I Homes, Inc. *		43,248		975,675
Marine Products Corp.		229		1,626
Meritage Homes Corp. *		482		20,615
Movado Group, Inc.		234		6,852
NACCO Industries, Inc., Class A		44		2,155
Nautilus, Inc. *		206		3,463
Oxford Industries, Inc.		210		16,685
Perry Ellis International, Inc. *		300		7,176
Quiksilver, Inc. *		989		1,642
Sequential Brands Group, Inc. *		175		2,170
Skechers U.S.A., Inc., Class A *		433		38,935
Skullcandy, Inc. *		650		7,027
Smith & Wesson Holding Corp. *		826		12,278
Standard Pacific Corp. *		1,287		10,425
Steven Madden Ltd. *		709		27,665
Sturm, Ruger & Co., Inc.		143		7,838
The Ryland Group, Inc.		484		19,950
TRI Pointe Homes, Inc. *		115,189		1,644,899
Tumi Holdings, Inc. *		459		10,736
UCP, Inc., Class A *		39,000		337,740
Unifi, Inc. *		65		2,294
Universal Electronics, Inc. *		111		5,987
Vera Bradley, Inc. *		351		4,998
Vince Holding Corp. *		23,515		433,381
William Lyon Homes, Class A *		84,615		1,831,915
Wolverine World Wide, Inc.		1,060		32,574
				9,219,653
Consumer Services 1.3%
2U, Inc. *		80		2,129
American Public Education, Inc. *		186		5,188
Ascent Capital Group, Inc., Class A *		118		4,725
Belmond Ltd., Class A *		1,121		13,811
Biglari Holdings, Inc. *		15		5,483
BJ’s Restaurants, Inc. *		371		17,363
Bloomin’ Brands, Inc.		860		19,488
Bob Evans Farms, Inc.		356		15,315
Boyd Gaming Corp. *		838		11,062
Bravo Brio Restaurant Group, Inc. *		350		5,155
Bridgepoint Education, Inc. *		135		1,184
Bright Horizons Family Solutions, Inc. *		205		10,307
Buffalo Wild Wings, Inc. *		215		34,249
Caesars Acquisition Co., Class A *		318		1,997
Caesars Entertainment Corp. *		511		4,849
Capella Education Co.		123		6,646
Career Education Corp. *		498		2,092
Carriage Services, Inc.		288		6,808
Chegg, Inc. *		701		5,208
Churchill Downs, Inc.		120		14,300
Chuy’s Holdings, Inc. *		95		2,149
ClubCorp Holdings, Inc.		137		2,999
Collectors Universe, Inc.		127		2,925
Cracker Barrel Old Country Store, Inc.		211		27,953
Del Frisco’s Restaurant Group, Inc. *		78		1,573
Denny’s Corp. *		1,170		12,180
Diamond Resorts International, Inc. *		253		8,099
DineEquity, Inc.		126		12,150
El Pollo Loco Holdings, Inc. *		58		1,518
Fiesta Restaurant Group, Inc. *		203		10,262
Grand Canyon Education, Inc. *		573		25,945
Houghton Mifflin Harcourt Co. *		952		21,763
Ignite Restaurant Group, Inc. *		89		313
International Speedway Corp., Class A		319		11,599
Interval Leisure Group, Inc.		313		7,759
Isle of Capri Casinos, Inc. *		233		3,313
ITT Educational Services, Inc. *		274		1,447
Jack in the Box, Inc.		473		41,042
Jamba, Inc. *		114		1,797
K12, Inc. *		436		7,050
Krispy Kreme Doughnuts, Inc. *		45,786		814,991
La Quinta Holdings, Inc. *		310		7,465
Liberty Tax, Inc.		105		2,908
Life Time Fitness, Inc. *		427		30,530
LifeLock, Inc. *		62,252		909,502
Marriott Vacations Worldwide Corp.		253		20,799
Morgans Hotel Group Co. *		666		4,562
Nathan’s Famous, Inc.		33		1,358
Noodles & Co. *		145		2,903
Papa John’s International, Inc.		432		26,512
Penn National Gaming, Inc. *		798		12,832
Pinnacle Entertainment, Inc. *		764		28,085
Popeyes Louisiana Kitchen, Inc. *		295		16,426
Potbelly Corp. *		123		1,846
Red Robin Gourmet Burgers, Inc. *		166		12,465
Regis Corp. *		656		10,837
Ruby Tuesday, Inc. *		766		5,576
Ruth’s Hospitality Group, Inc.		600		8,730
Scientific Games Corp., Class A *		564		7,146
Sonic Corp.		749		21,459
Sotheby’s		690		29,470
Speedway Motorsports, Inc.		96		2,198
Steiner Leisure Ltd. *		92		4,438
Strayer Education, Inc. *		108		5,478
Texas Roadhouse, Inc.		909		30,542
The Cheesecake Factory, Inc.		617		30,930
The Marcus Corp.		350		6,779
Universal Technical Institute, Inc.		400		3,380
Vail Resorts, Inc.		346		34,327
Weight Watchers International, Inc. *		200		1,710
				2,487,379

16 See financial notes

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Diversified Financials 2.4%
Arlington Asset Investment Corp., Class A		280		6,070
Ashford, Inc. *		10		998
BGC Partners, Inc., Class A		1,391		13,959
Calamos Asset Management, Inc., Class A		525		6,494
Cash America International, Inc.		385		9,979
Cohen & Steers, Inc.		135		5,111
Cowen Group, Inc., Class A *		568		3,175
Credit Acceptance Corp. *		80		18,896
Diamond Hill Investment Group, Inc.		21		3,826
Encore Capital Group, Inc. *		184		7,441
Enova International, Inc. *		352		6,516
Evercore Partners, Inc., Class A		406		19,585
Ezcorp, Inc., Class A *		574		5,281
FBR & Co. *		184		3,949
Fifth Street Asset Management, Inc.		113		1,246
Financial Engines, Inc.		590		24,880
First Cash Financial Services, Inc. *		374		18,079
FXCM, Inc., Class A		648		1,302
Gain Capital Holdings, Inc.		191,480		1,891,822
GAMCO Investors, Inc., Class A		30		2,319
Green Dot Corp., Class A *		498		8,018
Greenhill & Co., Inc.		269		10,639
HFF, Inc., Class A		301		11,796
INTL FCStone, Inc. *		177		5,682
Investment Technology Group, Inc. *		253		7,208
Janus Capital Group, Inc.		1,524		27,280
KCG Holdings, Inc., Class A *		700		8,988
Ladenburg Thalmann Financial Services, Inc. *		1,958		6,598
Manning & Napier, Inc.		300		3,189
MarketAxess Holdings, Inc.		468		40,178
Marlin Business Services Corp.		80		1,598
Moelis & Co., Class A		51		1,380
Nelnet, Inc., Class A		172		7,700
NewStar Financial, Inc. *		255		2,933
Nicholas Financial, Inc. *		110		1,389
Oppenheimer Holdings, Inc., Class A		71		1,696
PHH Corp. *		622		15,625
PICO Holdings, Inc. *		87,249		1,571,355
Piper Jaffray Cos. *		273		13,773
PRA Group, Inc. *		585		32,043
Pzena Investment Management, Inc., Class A		326		2,999
RCS Capital Corp., Class A		121		1,039
Regional Management Corp. *		66		1,066
Resource America, Inc., Class A		210		1,793
Safeguard Scientifics, Inc. *		390		7,016
Solar Capital Ltd.		41,160		813,322
Springleaf Holdings, Inc. *		210		10,500
Stifel Financial Corp. *		778		41,110
Virtus Investment Partners, Inc.		53		7,082
Walter Investment Management Corp. *		369		6,498
WisdomTree Investments, Inc.		1,219		23,210
World Acceptance Corp. *		106		8,970
				4,754,601
Energy 5.1%
Abraxas Petroleum Corp. *		646		2,455
Adams Resources & Energy, Inc.		80		3,728
Alon USA Energy, Inc.		543		8,737
Alpha Natural Resources, Inc. *		2,093		1,695
American Eagle Energy Corp. *		298		51
Amyris, Inc. *		611		1,381
Approach Resources, Inc. *		293		2,570
Arch Coal, Inc. *		2,625		2,557
Basic Energy Services, Inc. *		450		4,586
Bill Barrett Corp. *		503		5,835
Bonanza Creek Energy, Inc. *		279		7,689
Bristow Group, Inc.		422		26,219
C&J Energy Services Ltd. *		525		9,161
Callon Petroleum Co. *		610		5,453
CARBO Ceramics, Inc.		192		8,492
Carrizo Oil & Gas, Inc. *		492		27,419
CHC Group Ltd. *		312		371
Clayton Williams Energy, Inc. *		52		2,895
Clean Energy Fuels Corp. *		957		9,446
Cloud Peak Energy, Inc. *		818		5,309
Comstock Resources, Inc.		612		3,286
Contango Oil & Gas Co. *		98		2,457
Delek US Holdings, Inc.		511		18,866
DHT Holdings, Inc.		1,623		12,984
Diamondback Energy, Inc. *		416		34,349
Dorian LPG Ltd. *		54,980		729,035
Emerald Oil, Inc. *		501		321
Energy XXI Ltd.		1,132		4,947
Era Group, Inc. *		35,943		797,216
Evolution Petroleum Corp.		368		2,532
EXCO Resources, Inc.		1,244		2,563
Exterran Holdings, Inc.		688		25,504
Forum Energy Technologies, Inc. *		686		15,956
Frontline Ltd. *		849		2,173
FX Energy, Inc. *		1,211		1,635
GasLog Ltd.		74,096		1,651,600
Gastar Exploration, Inc. *		637		2,312
Geospace Technologies Corp. *		127		2,743
Golar LNG Ltd.		51,160		1,841,504
Goodrich Petroleum Corp. *		399		1,544
Green Plains, Inc.		321		9,996
Gulf Island Fabrication, Inc.		137		1,807
Gulfmark Offshore, Inc., Class A		323		4,848
Halcon Resources Corp. *		2,678		3,990
Hallador Energy Co.		205		2,355
Harvest Natural Resources, Inc. *		360		230
Helix Energy Solutions Group, Inc. *		1,289		21,243
Hercules Offshore, Inc. *		1,421		1,144
Hornbeck Offshore Services, Inc. *		437		9,985
ION Geophysical Corp. *		1,487		3,390
Isramco, Inc. *		35		4,324
Key Energy Services, Inc. *		1,526		3,723
Magnum Hunter Resources Corp. *		2,000		4,380
Matador Resources Co. *		666		18,462
Matrix Service Co. *		288		6,327
McDermott International, Inc. *		2,022		10,616
Midstates Petroleum Co., Inc. *		288		331
Miller Energy Resources, Inc. *		401		291
Mitcham Industries, Inc. *		316		1,548
Natural Gas Services Group, Inc. *		230		5,831

See financial notes 17

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Navios Maritime Acquisition Corp.		707		2,694
Newpark Resources, Inc. *		1,132		11,614
Nordic American Offshore Ltd. *		196		1,848
Nordic American Tankers Ltd.		851		10,408
North Atlantic Drilling Ltd.		402		619
Northern Oil & Gas, Inc. *		674		5,958
Nuverra Environmental Solutions, Inc. *		117		475
Pacific Ethanol, Inc. *		171		2,045
Panhandle Oil & Gas, Inc., Class A		112		2,554
Parker Drilling Co. *		1,022		3,833
Parsley Energy, Inc., Class A *		371		6,433
PDC Energy, Inc. *		405		22,980
Penn Virginia Corp. *		604		4,035
PetroQuest Energy, Inc. *		764		2,048
PHI, Inc. - Non Voting Shares *		154		4,825
Pioneer Energy Services Corp. *		762		5,677
Renewable Energy Group, Inc. *		128		1,179
Resolute Energy Corp. *		676		838
REX American Resources Corp. *		47		2,971
Rex Energy Corp. *		550		2,750
RigNet, Inc. *		67		2,510
Ring Energy, Inc. *		107		1,299
Rosetta Resources, Inc. *		676		15,433
RSP Permian, Inc. *		45,745		1,327,520
Sanchez Energy Corp. *		415		6,096
Scorpio Tankers, Inc.		184,070		1,719,214
SEACOR Holdings, Inc. *		16,928		1,229,989
SemGroup Corp., Class A		502		42,263
Ship Finance International Ltd.		846		13,333
Solazyme, Inc. *		781		3,007
Stone Energy Corp. *		560		9,559
Swift Energy Co. *		615		1,857
Synergy Resources Corp. *		526		6,302
Teekay Tankers Ltd., Class A		1,281		8,070
Tesco Corp.		12,332		158,590
TETRA Technologies, Inc. *		1,052		7,595
TransAtlantic Petroleum Ltd. *		161		934
Triangle Petroleum Corp. *		903		5,391
US Silica Holdings, Inc.		585		21,850
VAALCO Energy, Inc. *		727		1,796
Vantage Drilling Co. *		927		369
Vertex Energy, Inc. *		420		907
W&T Offshore, Inc.		463		2,977
Warren Resources, Inc. *		1,494		1,614
Western Refining, Inc.		632		27,840
Westmoreland Coal Co. *		151		4,291
Willbros Group, Inc. *		458		1,145
				10,121,932
Food & Staples Retailing 0.6%
Casey’s General Stores, Inc.		13,260		1,089,707
Ingles Markets, Inc., Class A		68		2,846
Liberator Medical Holdings, Inc.		440		1,241
Natural Grocers by Vitamin Cottage, Inc. *		79		2,079
PriceSmart, Inc.		184		14,805
Roundy’s, Inc. *		331		1,668
SpartanNash, Co.		442		13,335
SUPERVALU, Inc. *		1,788		15,717
The Andersons, Inc.		307		13,106
The Chefs’ Warehouse, Inc. *		99		1,803
The Fresh Market, Inc. *		480		16,867
United Natural Foods, Inc. *		542		36,563
Village Super Market, Inc., Class A		150		4,789
Weis Markets, Inc.		99		4,391
				1,218,917
Food, Beverage & Tobacco 1.2%
22nd Century Group, Inc. *		497		502
Alico, Inc.		40		1,871
B&G Foods, Inc.		660		20,064
Boulder Brands, Inc. *		689		6,573
Cal-Maine Foods, Inc.		304		13,592
Calavo Growers, Inc.		64		3,242
Coca-Cola Bottling Co. Consolidated		28		3,164
Craft Brew Alliance, Inc. *		211		2,775
Darling Ingredients, Inc. *		2,002		27,347
Dean Foods Co.		1,365		22,181
Diamond Foods, Inc. *		149		4,178
Farmer Bros. Co. *		120		2,992
Fresh Del Monte Produce, Inc.		372		13,738
Inventure Foods, Inc. *		208		2,028
J&J Snack Foods Corp.		97		10,120
John B. Sanfilippo & Son, Inc.		86		4,473
Lancaster Colony Corp.		202		18,111
Landec Corp. *		485		6,892
Lifeway Foods, Inc. *		98		1,980
Limoneira Co.		88		2,019
National Beverage Corp. *		228		5,096
Omega Protein Corp. *		133		1,700
Post Holdings, Inc. *		27,147		1,274,280
Sanderson Farms, Inc.		247		18,555
Seaboard Corp. *		2		7,200
Seneca Foods Corp., Class A *		55		1,585
Snyder’s-Lance, Inc.		528		15,592
The Boston Beer Co., Inc. Class A *		102		25,275
The Hain Celestial Group, Inc. *		12,010		723,482
Tootsie Roll Industries, Inc.		56		1,735
TreeHouse Foods, Inc. *		435		35,348
Universal Corp.		260		12,228
Vector Group Ltd.		1,097		24,298
				2,314,216
Health Care Equipment & Services 10.0%
Abaxis, Inc.		283		18,112
ABIOMED, Inc. *		17,004		1,074,993
Acadia Healthcare Co., Inc. *		18,899		1,294,582
Accuray, Inc. *		991		8,057
Aceto Corp.		475		9,206
Addus HomeCare Corp. *		103		2,765
Air Methods Corp. *		408		18,646
Alliance HealthCare Services, Inc. *		105		2,233
Allscripts Healthcare Solutions, Inc. *		98,360		1,308,188
Almost Family, Inc. *		220		9,522
Amedisys, Inc. *		483		13,432
AMN Healthcare Services, Inc. *		14,346		327,232
Amsurg Corp. *		19,456		1,220,280
Analogic Corp.		182		15,379
AngioDynamics, Inc. *		540		9,013
Anika Therapeutics, Inc. *		101		3,446

18 See financial notes

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Antares Pharma, Inc. *		750		1,838
AtriCure, Inc. *		446		9,816
Atrion Corp.		18		5,847
Bio-Reference Laboratories, Inc. *		408		13,513
BioScrip, Inc. *		891		4,188
Cantel Medical Corp.		294		13,168
Capital Senior Living Corp. *		231		6,045
Cardiovascular Systems, Inc. *		244		7,637
Castlight Health, Inc., Class B *		117		881
Centene Corp. *		14,820		918,692
Cerus Corp. *		389		1,727
Chemed Corp.		213		24,548
Computer Programs & Systems, Inc.		180		9,419
CONMED Corp.		284		14,265
CorVel Corp. *		12,988		464,191
Cross Country Healthcare, Inc. *		331		3,674
CryoLife, Inc.		266		2,713
Cyberonics, Inc. *		319		19,430
Cynosure, Inc., Class A *		56		1,872
Derma Sciences, Inc. *		127		1,003
DexCom, Inc. *		15,853		1,071,187
Endologix, Inc. *		32,066		498,947
Exactech, Inc. *		178		3,889
ExamWorks Group, Inc. *		430		17,609
Five Star Quality Care, Inc. *		326		1,386
Genesis Healthcare, Inc. *		239		1,652
GenMark Diagnostics, Inc. *		323		3,101
Globus Medical, Inc., Class A *		40,861		976,169
Greatbatch, Inc. *		288		15,529
Haemonetics Corp. *		28,433		1,152,390
Hanger, Inc. *		485		10,835
HealthSouth Corp.		24,301		1,098,891
HealthStream, Inc. *		236		6,830
Healthways, Inc. *		203		3,532
HeartWare International, Inc. *		144		10,902
HMS Holdings Corp. *		23,383		397,745
ICU Medical, Inc. *		18,042		1,522,204
Insulet Corp. *		10,383		309,933
Integra LifeSciences Holdings Corp. *		303		17,810
Invacare Corp.		171		3,432
IPC Healthcare, Inc. *		160		7,827
Kindred Healthcare, Inc.		612		14,045
Landauer, Inc.		74		2,387
LDR Holding Corp. *		85		2,877
LHC Group, Inc. *		240		7,694
Magellan Health, Inc. *		249		15,762
Masimo Corp. *		627		21,168
MedAssets, Inc. *		47,473		960,854
Medidata Solutions, Inc. *		630		33,661
Merge Healthcare, Inc. *		1,173		5,830
Meridian Bioscience, Inc.		185		3,278
Merit Medical Systems, Inc. *		791		15,353
Molina Healthcare, Inc. *		262		15,518
National HealthCare Corp.		93		5,887
National Research Corp., Class A		104		1,500
Natus Medical, Inc. *		500		18,855
Neogen Corp. *		304		13,540
NuVasive, Inc. *		555		24,825
NxStage Medical, Inc. *		78,608		1,440,885
Omnicell, Inc. *		424		15,065
OraSure Technologies, Inc. *		921		5,802
Orthofix International N.V. *		107		3,457
Owens & Minor, Inc.		849		28,628
PharMerica Corp. *		425		12,181
Quality Systems, Inc.		584		9,107
Quidel Corp. *		77		1,794
RadNet, Inc. *		255		2,137
Rockwell Medical, Inc. *		418		4,059
Roka Bioscience, Inc. *		346		1,014
Second Sight Medical Products, Inc. *		168		1,952
Select Medical Holdings Corp.		656		9,545
STAAR Surgical Co. *		395		3,496
STERIS Corp.		23,694		1,575,651
SurModics, Inc. *		218		5,498
Symmetry Surgical, Inc. *		58		448
Team Health Holdings, Inc. *		792		47,179
The Ensign Group, Inc.		165		6,948
The Providence Service Corp. *		220		9,354
The Spectranetics Corp. *		30,385		779,375
Thoratec Corp. *		11,389		456,813
Tornier N.V. *		241		6,235
TransEnterix, Inc. *		315		1,184
Triple-S Management Corp., Class B *		424		7,937
TriVascular Technologies, Inc. *		150		1,095
Unilife Corp. *		555		1,859
Universal American Corp. *		375		3,746
Utah Medical Products, Inc.		34		1,833
Vascular Solutions, Inc. *		325		10,420
Vocera Communications, Inc. *		111		1,264
WellCare Health Plans, Inc. *		451		34,921
West Pharmaceutical Services, Inc.		684		36,444
Wright Medical Group, Inc. *		800		20,296
Zeltiq Aesthetics, Inc. *		177		5,434
				19,707,443
Household & Personal Products 0.0%
Central Garden & Pet Co., Class A *		440		4,312
Elizabeth Arden, Inc. *		249		3,503
HRG Group, Inc. *		791		9,911
Inter Parfums, Inc.		107		3,229
Medifast, Inc. *		250		7,500
Nature’s Sunshine Products, Inc.		105		1,366
Nutraceutical International Corp. *		84		1,638
Oil-Dri Corp. of America		61		2,002
Orchids Paper Products Co.		165		3,546
Revlon, Inc., Class A *		69		2,699
Synutra International, Inc. *		329		2,389
USANA Health Sciences, Inc. *		63		7,166
WD-40 Co.		99		8,015
				57,276
Insurance 1.3%
Ambac Financial Group, Inc. *		456		10,493
American Equity Investment Life Holding Co.		960		25,872
AMERISAFE, Inc.		16,551		747,940
AmTrust Financial Services, Inc.		366		21,766
Argo Group International Holdings Ltd.		185		9,063
Baldwin & Lyons, Inc., Class B		70		1,588
Citizens, Inc. *		419		2,363
CNO Financial Group, Inc.		2,506		42,602

See financial notes 19

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Crawford & Co., Class B		204		1,667
Donegal Group, Inc., Class A		120		1,813
eHealth, Inc. *		289		3,543
EMC Insurance Group, Inc.		64		2,217
Employers Holdings, Inc.		433		10,570
Enstar Group Ltd. *		83		11,789
FBL Financial Group, Inc., Class A		152		8,857
Federated National Holding Co.		70		2,016
First American Financial Corp.		1,271		44,218
Global Indemnity plc *		72		1,976
Greenlight Capital Re Ltd., Class A *		251		7,628
Hallmark Financial Services, Inc. *		183		2,028
HCI Group, Inc.		209		9,108
Horace Mann Educators Corp.		497		16,883
Independence Holding Co.		146		1,816
Infinity Property & Casualty Corp.		74		5,487
Kansas City Life Insurance Co.		45		2,020
Kemper Corp.		333		12,544
Maiden Holdings Ltd.		628		9,125
Meadowbrook Insurance Group, Inc.		1,312		11,204
Montpelier Re Holdings Ltd.		573		21,837
National General Holdings Corp.		189		3,655
National Interstate Corp.		57		1,597
National Western Life Insurance Co., Class A		9		2,157
OneBeacon Insurance Group Ltd., Class A		425		6,409
Primerica, Inc.		28,925		1,336,914
RLI Corp.		538		26,717
Safety Insurance Group, Inc.		100		5,815
Selective Insurance Group, Inc.		614		16,541
State Auto Financial Corp.		93		2,197
Stewart Information Services Corp.		370		13,505
Symetra Financial Corp.		750		17,813
The Navigators Group, Inc. *		89		6,946
Third Point Reinsurance Ltd. *		255		3,437
United Fire Group, Inc.		216		6,452
Universal Insurance Holdings, Inc.		206		4,948
				2,505,136
Materials 4.7%
A. Schulman, Inc.		317		13,457
A.M. Castle & Co. *		183		717
AK Steel Holding Corp. *		1,714		8,707
American Vanguard Corp.		404		4,408
Ampco-Pittsburgh Corp.		197		3,150
Axiall Corp.		860		35,088
Balchem Corp.		400		20,968
Berry Plastics Group, Inc. *		949		32,475
Boise Cascade Co. *		248		8,606
Calgon Carbon Corp.		747		16,576
Century Aluminum Co. *		784		10,106
Chase Corp.		76		2,721
Chemtura Corp. *		913		27,509
Clearwater Paper Corp. *		251		16,056
Coeur Mining, Inc. *		1,259		6,572
Commercial Metals Co.		958		15,903
Deltic Timber Corp.		19,056		1,219,584
Ferro Corp. *		1,023		13,800
Flotek Industries, Inc. *		717		10,246
FutureFuel Corp.		348		3,783
Globe Specialty Metals, Inc.		678		13,506
Gold Resource Corp.		374		1,260
Graphic Packaging Holding Co.		3,098		43,682
Greif, Inc., Class A		24,150		984,354
H.B. Fuller Co.		575		24,018
Handy & Harman Ltd. *		99		3,508
Hawkins, Inc.		42		1,657
Haynes International, Inc.		111		4,936
Headwaters, Inc. *		757		13,308
Hecla Mining Co.		2,963		8,948
Horsehead Holding Corp. *		490		7,325
Innophos Holdings, Inc.		307		16,222
Innospec, Inc.		24,309		1,062,303
Intrepid Potash, Inc. *		309		3,872
Kaiser Aluminum Corp.		195		15,672
KapStone Paper & Packaging Corp.		1,000		27,950
KMG Chemicals, Inc.		78		2,284
Koppers Holdings, Inc.		31,268		702,905
Kraton Performance Polymers, Inc. *		526		11,856
Kronos Worldwide, Inc.		152		2,044
Louisiana-Pacific Corp. *		1,580		24,079
LSB Industries, Inc. *		286		12,129
Materion Corp.		153		6,118
Minerals Technologies, Inc.		298		20,183
Molycorp, Inc. *		1,237		1,141
Myers Industries, Inc.		508		8,214
Neenah Paper, Inc.		178		10,764
Noranda Aluminum Holding Corp.		508		1,697
Olin Corp.		775		22,886
OM Group, Inc.		319		9,583
OMNOVA Solutions, Inc. *		246		1,965
P.H. Glatfelter Co.		627		15,550
PolyOne Corp.		1,061		41,432
Primero Mining Corp. *		161,590		594,651
Quaker Chemical Corp.		100		8,322
Rentech, Inc. *		2,658		3,190
Resolute Forest Products, Inc. *		773		11,920
RTI International Metals, Inc. *		324		12,199
Schnitzer Steel Industries, Inc., Class A		373		6,498
Schweitzer-Mauduit International, Inc.		284		12,556
Senomyx, Inc. *		388		2,246
Sensient Technologies Corp.		25,129		1,642,431
Stepan Co.		149		7,589
Stillwater Mining Co. *		1,215		16,317
SunCoke Energy, Inc.		58,036		1,017,371
Trecora Resources *		525		6,300
Tredegar Corp.		361		7,390
Tronox Ltd., Class A		498		10,433
UFP Technologies, Inc. *		86		1,745
United States Lime & Minerals, Inc.		34		2,244
Universal Stainless & Alloy Products, Inc. *		115		2,415
US Concrete, Inc. *		109		3,957
Walter Energy, Inc.		517		262
Wausau Paper Corp.		522		4,865
Worthington Industries, Inc.		533		14,407
Zep, Inc.		64,066		1,273,632
				9,260,723

20 See financial notes

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Media 1.3%
A. H. Belo Corp., Class A		155		1,037
AMC Entertainment Holdings, Inc., Class A		133		3,998
Carmike Cinemas, Inc. *		244		7,364
Central European Media Enterprises Ltd., Class A *		775		2,131
Cinedigm Corp., Class A *		686		569
Crown Media Holdings, Inc., Class A *		678		2,542
Cumulus Media, Inc., Class A *		1,288		2,937
Daily Journal Corp. *		27		5,427
Dex Media, Inc. *		151		397
Entercom Communications Corp., Class A *		610		7,247
Entravision Communications Corp., Class A		301		1,969
Eros International plc *		135		2,388
Global Eagle Entertainment, Inc. *		351		4,482
Gray Television, Inc. *		475		6,298
Harte-Hanks, Inc.		611		4,149
Hemisphere Media Group, Inc. *		122		1,542
Journal Media Group, Inc. *		265		2,462
Lee Enterprises, Inc. *		514		1,542
Loral Space & Communications, Inc. *		92		6,348
MDC Partners, Inc., Class A		381		7,978
Media General, Inc. *		600		10,134
Meredith Corp.		416		21,649
National CineMedia, Inc.		36,809		560,969
New Media Investment Group, Inc.		78,874		1,824,356
Nexstar Broadcasting Group, Inc., Class A		390		22,799
Radio One, Inc., Class D *		373		1,332
ReachLocal, Inc. *		133		372
Reading International, Inc., Class A *		278		3,703
Rentrak Corp. *		82		3,887
Saga Communications, Inc., Class A		146		5,839
Salem Media Group, Inc.		195		952
Scholastic Corp.		400		16,256
SFX Entertainment, Inc. *		382		1,669
Sinclair Broadcast Group, Inc., Class A		842		25,799
Sizmek, Inc. *		490		3,410
The E.W. Scripps Co., Class A		823		19,168
The McClatchy Co., Class A *		578		803
The New York Times Co., Class A		1,200		16,068
Time, Inc.		1,143		26,095
World Wrestling Entertainment, Inc., Class A		170		2,281
				2,640,348
Pharmaceuticals, Biotechnology & Life Sciences 6.4%
ACADIA Pharmaceuticals, Inc. *		913		31,197
Accelerate Diagnostics, Inc. *		200		4,560
Acceleron Pharma, Inc. *		145		4,009
AcelRx Pharmaceuticals, Inc. *		200		798
Achillion Pharmaceuticals, Inc. *		1,499		13,116
Acorda Therapeutics, Inc. *		584		17,561
Actinium Pharmaceuticals, Inc. *		203		512
Aegerion Pharmaceuticals, Inc. *		290		6,745
Aerie Pharmaceuticals, Inc. *		85		819
Affymetrix, Inc. *		1,145		13,889
Agenus, Inc. *		525		3,470
Agios Pharmaceuticals, Inc. *		176		16,252
Akebia Therapeutics, Inc. *		66		506
Akorn, Inc. *		22,277		927,614
Albany Molecular Research, Inc. *		42,531		768,110
Alder Biopharmaceuticals, Inc. *		97		2,474
Alimera Sciences, Inc. *		304		1,325
AMAG Pharmaceuticals, Inc. *		10,765		548,692
Amphastar Pharmaceuticals, Inc. *		147		2,126
Ampio Pharmaceuticals, Inc. *		296		713
Anacor Pharmaceuticals, Inc. *		306		16,123
ANI Pharmaceuticals, Inc. *		59		3,598
Applied Genetic Technologies Corp. *		57		1,091
Aratana Therapeutics, Inc. *		208		2,685
Arena Pharmaceuticals, Inc. *		2,745		11,968
ARIAD Pharmaceuticals, Inc. *		2,453		21,268
Array BioPharma, Inc. *		1,190		7,437
Arrowhead Research Corp. *		512		3,533
Auspex Pharmaceuticals, Inc. *		112		11,300
Bio-Path Holdings, Inc. *		575		894
BioCryst Pharmaceuticals, Inc. *		681		6,326
BioDelivery Sciences International, Inc. *		653		5,263
BioTime, Inc. *		427		2,191
Bluebird Bio, Inc. *		250		33,297
Cambrex Corp. *		360		13,856
Cara Therapeutics, Inc. *		341		3,666
Catalent, Inc. *		448		12,889
Celldex Therapeutics, Inc. *		1,179		28,296
Cempra, Inc. *		296		9,321
Cepheid *		857		48,078
Charles River Laboratories International, Inc. *		23,600		1,632,176
ChemoCentryx, Inc. *		121		809
Chimerix, Inc. *		251		8,534
Clovis Oncology, Inc. *		235		18,885
Corcept Therapeutics, Inc. *		907		5,233
CTI BioPharma, Corp. *		1,000		1,780
Cytokinetics, Inc. *		140		881
Cytori Therapeutics, Inc. *		742		649
CytRx Corp. *		506		2,221
Depomed, Inc. *		764		17,771
Dyax Corp. *		1,793		42,871
Dynavax Technologies Corp. *		480		9,655
Emergent Biosolutions, Inc. *		323		9,590
Enanta Pharmaceuticals, Inc. *		229		7,841
Endocyte, Inc. *		330		1,914
Enzo Biochem, Inc. *		358		1,002
Epizyme, Inc. *		125		2,039
Exact Sciences Corp. *		1,246		26,041
Exelixis, Inc. *		2,672		6,867
Five Prime Therapeutics, Inc. *		157		3,149
Fluidigm Corp. *		308		11,538
Foundation Medicine, Inc. *		105		4,779
Galectin Therapeutics, Inc. *		188		562
Galena Biopharma, Inc. *		1,426		1,925
Genomic Health, Inc. *		321		8,689
Geron Corp. *		1,639		5,933
Halozyme Therapeutics, Inc. *		1,493		22,201
Heron Therapeutics, Inc. *		194		2,095
Horizon Pharma plc *		43,418		1,220,914

See financial notes 21

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Hyperion Therapeutics, Inc. *		210		9,652
ICON plc *		27,040		1,739,754
Idera Pharmaceuticals, Inc. *		589		1,655
IGI Laboratories, Inc. *		309		1,570
ImmunoGen, Inc. *		1,054		8,717
Immunomedics, Inc. *		1,236		4,450
Impax Laboratories, Inc. *		879		39,784
Infinity Pharmaceuticals, Inc. *		426		5,397
Inovio Pharmaceuticals, Inc. *		539		4,398
Insmed, Inc. *		337		6,753
Insys Therapeutics, Inc. *		136		7,150
Intra-Cellular Therapies, Inc. *		139		2,843
Intrexon Corp. *		326		12,659
Ironwood Pharmaceuticals, Inc. *		1,459		19,930
Isis Pharmaceuticals, Inc. *		1,317		74,700
Karyopharm Therapeutics, Inc. *		111		3,015
Keryx Biopharmaceuticals, Inc. *		1,338		14,263
Kindred Biosciences, Inc. *		95		648
Kite Pharma, Inc. *		87		4,383
KYTHERA Biopharmaceuticals, Inc. *		154		6,728
Lannett Co., Inc. *		220		12,650
Lexicon Pharmaceuticals, Inc. *		2,643		2,643
Ligand Pharmaceuticals, Inc. *		171		13,276
Loxo Oncology, Inc. *		107		1,216
Luminex Corp. *		628		9,747
MacroGenics, Inc. *		170		4,864
MannKind Corp. *		2,261		9,700
Merrimack Pharmaceuticals, Inc. *		1,316		14,608
MiMedx Group, Inc. *		897		8,432
Mirati Therapeutics, Inc. *		77		2,140
Momenta Pharmaceuticals, Inc. *		705		12,302
Myriad Genetics, Inc. *		13,090		432,363
NanoViricides, Inc. *		389		669
Navidea Biopharmaceuticals, Inc. *		1,179		1,592
Nektar Therapeutics *		1,261		12,005
NeoStem, Inc. *		266		766
Neuralstem, Inc. *		613		1,036
Neurocrine Biosciences, Inc. *		841		28,670
NewLink Genetics Corp. *		187		8,340
Northwest Biotherapeutics, Inc. *		349		2,743
Novavax, Inc. *		2,650		20,484
Ohr Pharmaceutical, Inc. *		230		646
Omeros Corp. *		332		6,680
OncoMed Pharmaceuticals, Inc. *		102		2,446
Oncothyreon, Inc. *		612		918
Ophthotech Corp. *		140		6,339
OPKO Health, Inc. *		2,555		35,157
Orexigen Therapeutics, Inc. *		1,388		9,119
Organovo Holdings, Inc. *		547		2,483
Osiris Therapeutics, Inc. *		165		2,503
OvaScience, Inc. *		118		2,920
Pacific Biosciences of California, Inc. *		687		3,545
Pacira Pharmaceuticals, Inc. *		9,825		672,816
Pain Therapeutics, Inc. *		314		641
PAREXEL International Corp. *		16,010		1,017,836
PDL BioPharma, Inc.		1,549		10,332
Peregrine Pharmaceuticals, Inc. *		2,024		2,651
Pernix Therapeutics Holdings, Inc. *		319		2,035
Phibro Animal Health Corp., Class A		46,485		1,476,364
Portola Pharmaceuticals, Inc. *		338		12,063
POZEN, Inc. *		383		2,995
Prestige Brands Holdings, Inc. *		661		25,944
Progenics Pharmaceuticals, Inc. *		448		2,218
Prothena Corp. plc *		221		7,163
PTC Therapeutics, Inc. *		208		12,220
Puma Biotechnology, Inc. *		242		43,700
Radius Health, Inc. *		89		3,190
Raptor Pharmaceutical Corp. *		983		9,948
Receptos, Inc. *		225		33,151
Regulus Therapeutics, Inc. *		229		2,874
Relypsa, Inc. *		149		4,311
Repligen Corp. *		220		6,492
Repros Therapeutics, Inc. *		264		2,030
Retrophin, Inc. *		196		4,222
Revance Therapeutics, Inc. *		57		1,121
Rigel Pharmaceuticals, Inc. *		997		4,247
Sage Therapeutics, Inc. *		91		4,823
Sagent Pharmaceuticals, Inc. *		206		4,802
Sangamo BioSciences, Inc. *		652		8,065
Sarepta Therapeutics, Inc. *		472		5,758
SciClone Pharmaceuticals, Inc. *		344		2,810
Sequenom, Inc. *		1,119		4,968
Spectrum Pharmaceuticals, Inc. *		960		5,424
Stemline Therapeutics, Inc. *		66		917
Sucampo Pharmaceuticals, Inc., Class A *		245		4,351
Sunesis Pharmaceuticals, Inc. *		599		1,402
Supernus Pharmaceuticals, Inc. *		327		4,186
Synageva BioPharma Corp. *		221		20,323
Synergy Pharmaceuticals, Inc. *		849		2,971
Synta Pharmaceuticals Corp. *		932		2,097
T2 Biosystems, Inc. *		86		1,330
TESARO, Inc. *		176		9,587
Tetraphase Pharmaceuticals, Inc. *		292		10,302
TG Therapeutics, Inc. *		269		3,755
The Medicines Co. *		11,282		288,932
TherapeuticsMD, Inc. *		1,025		6,642
Theravance Biopharma, Inc. *		214		3,424
Theravance, Inc.		782		12,707
Threshold Pharmaceuticals, Inc. *		1,100		3,894
Tokai Pharmaceuticals, Inc. *		98		980
Ultragenyx Pharmaceutical, Inc. *		70		3,950
Vanda Pharmaceuticals, Inc. *		59,238		542,028
Verastem, Inc. *		132		1,096
Versartis, Inc. *		63		1,076
Vital Therapies, Inc. *		63		1,532
VIVUS, Inc. *		1,152		2,569
Xencor, Inc. *		161		2,289
XenoPort, Inc. *		356		2,111
XOMA Corp. *		1,300		3,900
Zafgen, Inc. *		97		3,019
ZIOPHARM Oncology, Inc. *		1,259		11,092
Zogenix, Inc. *		1,020		1,418
				12,678,657
Real Estate 4.8%
Acadia Realty Trust		679		20,981
AG Mortgage Investment Trust, Inc.		79		1,518
Agree Realty Corp.		205		6,310
Alexander & Baldwin, Inc.		485		19,633
Alexander’s, Inc.		13		5,606
Altisource Asset Management Corp. *		14		3,136

22 See financial notes

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Altisource Portfolio Solutions S.A. *		138		3,347
Altisource Residential Corp.		549		10,513
American Assets Trust, Inc.		432		17,194
American Capital Mortgage Investment Corp.		670		11,752
American Residential Properties, Inc. *		216		4,052
Anworth Mortgage Asset Corp.		1,734		8,809
Apollo Commercial Real Estate Finance, Inc.		783		13,382
Apollo Residential Mortgage, Inc.		812		12,878
Ares Commercial Real Estate Corp.		400		4,540
Armada Hoffler Properties, Inc.		277		2,845
ARMOUR Residential REIT, Inc.		4,721		14,163
Ashford Hospitality Prime, Inc.		188		2,944
Ashford Hospitality Trust, Inc.		1,142		10,347
Associated Estates Realty Corp.		725		20,663
AV Homes, Inc. *		99		1,562
Campus Crest Communities, Inc.		754		4,773
Capstead Mortgage Corp.		1,244		14,493
CareTrust REIT, Inc.		222		2,773
Cedar Realty Trust, Inc.		1,016		7,102
Chambers Street Properties		2,296		17,220
Chatham Lodging Trust		397		10,973
Chesapeake Lodging Trust		702		22,289
Colony Capital, Inc., Class A		1,324		34,305
Consolidated-Tomoka Land Co.		43		2,354
CorEnergy Infrastructure Trust, Inc.		449		3,049
CoreSite Realty Corp.		342		16,443
Cousins Properties, Inc.		1,917		18,672
CubeSmart		1,706		39,357
CyrusOne, Inc.		268		8,705
CYS Investments, Inc.		2,209		19,704
DCT Industrial Trust, Inc.		1,041		34,395
DiamondRock Hospitality Co.		64,498		874,593
DuPont Fabros Technology, Inc.		853		26,571
Dynex Capital, Inc.		809		6,472
EastGroup Properties, Inc.		304		17,389
Education Realty Trust, Inc.		30,231		1,016,366
Empire State Realty Trust, Inc., Class A		745		13,410
EPR Properties		528		30,450
Equity One, Inc.		846		20,837
Excel Trust, Inc.		688		10,905
FelCor Lodging Trust, Inc.		1,531		17,009
First Industrial Realty Trust, Inc.		1,384		27,306
First Potomac Realty Trust		864		9,262
Forestar Group, Inc. *		464		6,849
Franklin Street Properties Corp.		1,246		14,715
FRP Holdings, Inc. *		56		1,944
Getty Realty Corp.		457		7,938
Gladstone Commercial Corp.		602		10,722
Government Properties Income Trust		948		19,756
Gramercy Property Trust, Inc.		404		11,045
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		367		6,973
Hatteras Financial Corp.		1,041		18,801
Healthcare Realty Trust, Inc.		1,185		30,336
Hersha Hospitality Trust		1,749		11,246
Highwoods Properties, Inc.		852		36,670
Hudson Pacific Properties, Inc.		839		25,304
InfraREIT, Inc.		91		2,838
Inland Real Estate Corp.		1,250		12,863
Invesco Mortgage Capital, Inc.		1,531		23,577
Investors Real Estate Trust		823		5,901
iStar Financial, Inc. *		1,209		16,370
Kennedy-Wilson Holdings, Inc.		730		18,089
Kite Realty Group Trust		537		14,069
LaSalle Hotel Properties		29,957		1,099,122
Lexington Realty Trust		1,679		15,564
LTC Properties, Inc.		485		21,078
Mack-Cali Realty Corp.		841		15,096
Medical Properties Trust, Inc.		1,825		25,514
Monmouth Real Estate Investment Corp.		752		7,768
National Health Investors, Inc.		318		21,217
New Residential Investment Corp.		1,667		28,406
New Senior Investment Group, Inc.		154,508		2,496,849
New York Mortgage Trust, Inc.		1,050		8,201
New York REIT, Inc.		1,357		13,407
Newcastle Investment Corp.		69,098		368,292
One Liberty Properties, Inc.		123		2,765
Owens Realty Mortgage, Inc.		118		1,591
Parkway Properties, Inc.		583		9,485
Pebblebrook Hotel Trust		760		32,634
Pennsylvania Real Estate Investment Trust		629		14,222
PennyMac Mortgage Investment Trust		872		18,268
Physicians Realty Trust		689		11,437
Potlatch Corp.		420		15,502
PS Business Parks, Inc.		150		11,453
QTS Realty Trust, Inc., Class A		97		3,518
RAIT Financial Trust		1,290		8,359
Ramco-Gershenson Properties Trust		1,123		19,630
Redwood Trust, Inc.		711		12,222
Resource Capital Corp.		1,460		6,439
Retail Opportunity Investments Corp.		1,133		19,012
Rexford Industrial Realty, Inc.		447		6,642
RLJ Lodging Trust		1,420		42,131
Rouse Properties, Inc.		488		8,525
Ryman Hospitality Properties, Inc.		493		28,417
Sabra Health Care REIT, Inc.		591		17,659
Saul Centers, Inc.		205		10,316
Select Income REIT		316		7,328
Silver Bay Realty Trust Corp.		492		7,611
Sovran Self Storage, Inc.		372		32,491
STAG Industrial, Inc.		633		13,755
Starwood Waypoint Residential Trust		425		10,940
STORE Capital Corp.		125		2,625
Strategic Hotels & Resorts, Inc. *		2,342		27,401
Summit Hotel Properties, Inc.		145,620		1,917,815
Sun Communities, Inc.		453		28,113
Sunstone Hotel Investors, Inc.		2,092		32,593
Tejon Ranch Co. *		159		3,927
Terreno Realty Corp.		337		7,171
The Geo Group, Inc.		928		36,192
The St. Joe Co. *		471		8,219
Trade Street Residential, Inc.		265		1,847
UMH Properties, Inc.		706		7,109
Universal Health Realty Income Trust		106		5,264
Urstadt Biddle Properties, Inc., Class A		224		4,648
Washington Real Estate Investment Trust		491		12,138

See financial notes 23

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Western Asset Mortgage Capital Corp.		145		2,118
Whitestone REIT		404		5,939
				9,415,343
Retailing 3.7%
1-800-Flowers.com, Inc., Class A *		151		1,596
Aeropostale, Inc. *		1,044		3,226
America’s Car-Mart, Inc. *		38		1,951
American Eagle Outfitters, Inc.		1,903		30,277
ANN, Inc. *		574		21,732
Asbury Automotive Group, Inc. *		362		30,419
Ascena Retail Group, Inc. *		95,390		1,429,896
Barnes & Noble, Inc. *		342		7,490
bebe stores, Inc.		766		2,535
Blue Nile, Inc. *		112		3,047
Brown Shoe Co., Inc.		497		14,761
Build-A-Bear Workshop, Inc. *		136		2,506
Burlington Stores, Inc. *		352		18,153
Christopher & Banks Corp. *		284		1,687
Conn’s, Inc. *		257		7,188
Core-Mark Holding Co., Inc.		210		11,069
Destination Maternity Corp.		197		2,323
EVINE Live, Inc. *		338		2,014
Express, Inc. *		813		13,252
Five Below, Inc. *		573		19,322
Francesca’s Holdings Corp. *		25,361		429,362
Fred’s, Inc., Class A		84,480		1,425,178
FTD Cos., Inc. *		208		5,936
Genesco, Inc. *		257		17,371
Group 1 Automotive, Inc.		250		19,745
Guess?, Inc.		504		9,228
Haverty Furniture Cos, Inc.		81		1,738
hhgregg, Inc. *		110		629
Hibbett Sports, Inc. *		290		13,572
HSN, Inc.		417		26,029
Kirkland’s, Inc. *		300		7,122
Lands’ End, Inc. *		107		3,144
Lithia Motors, Inc., Class A		246		24,534
Lumber Liquidators Holdings, Inc. *		321		8,824
MarineMax, Inc. *		149		3,290
Mattress Firm Holding Corp. *		92		5,435
Monro Muffler Brake, Inc.		329		19,704
Nutrisystem, Inc.		292		5,563
Office Depot, Inc. *		5,328		49,124
Orbitz Worldwide, Inc. *		429		5,028
Outerwall, Inc.		264		17,537
PetMed Express, Inc.		284		4,496
Pier 1 Imports, Inc.		991		12,536
Pool Corp.		494		32,056
Rent-A-Center, Inc.		485		14,356
Restoration Hardware Holdings, Inc. *		10,871		936,754
Select Comfort Corp. *		587		18,091
Shoe Carnival, Inc.		70		1,828
Shutterfly, Inc. *		460		20,590
Sonic Automotive, Inc., Class A		451		10,531
Stage Stores, Inc.		63,953		1,234,932
Stein Mart, Inc.		616		7,287
Systemax, Inc. *		178		1,860
The Bon-Ton Stores, Inc.		370		2,653
The Buckle, Inc.		280		12,544
The Cato Corp., Class A		31,966		1,257,542
The Children’s Place, Inc.		270		16,378
The Container Store Group, Inc. *		102		1,862
The Finish Line, Inc., Class A		661		16,214
The Men’s Wearhouse, Inc.		637		36,048
The Pep Boys - Manny, Moe & Jack *		705		6,458
Tile Shop Holdings, Inc. *		190		2,464
Tilly’s, Inc., Class A *		145		1,934
Travelport Worldwide Ltd.		234		3,704
Tuesday Morning Corp. *		623		9,856
Vitamin Shoppe, Inc. *		384		16,082
VOXX International Corp. *		301		2,869
Wayfair, Inc., Class A *		51		1,638
West Marine, Inc. *		151		1,518
Weyco Group, Inc.		68		1,938
Winmark Corp.		26		2,340
Zumiez, Inc. *		232		7,357
				7,419,253
Semiconductors & Semiconductor Equipment 1.1%
Advanced Energy Industries, Inc. *		466		11,398
Alpha & Omega Semiconductor Ltd. *		218		1,785
Ambarella, Inc. *		269		19,677
Amkor Technology, Inc. *		1,019		7,164
Applied Micro Circuits Corp. *		734		3,942
Audience, Inc. *		351		1,671
Axcelis Technologies, Inc. *		913		2,301
Brooks Automation, Inc.		992		10,674
Cabot Microelectronics Corp. *		357		16,886
Cavium, Inc. *		535		34,663
CEVA, Inc. *		286		5,920
Cirrus Logic, Inc. *		607		20,504
Cypress Semiconductor Corp. *		3,626		48,298
Diodes, Inc. *		365		9,753
DSP Group, Inc. *		206		2,344
Entegris, Inc. *		1,145		15,240
Entropic Communications, Inc. *		936		2,827
Exar Corp. *		523		5,162
Fairchild Semiconductor International, Inc. *		1,166		21,180
FormFactor, Inc. *		1,000		7,970
Inphi Corp. *		480		10,296
Integrated Device Technology, Inc. *		1,418		25,793
Integrated Silicon Solution, Inc.		213		3,951
Intersil Corp., Class A		1,102		14,712
IXYS Corp.		155		1,753
Kopin Corp. *		1,298		4,309
Lattice Semiconductor Corp. *		1,055		6,256
M/A-COM Technology Solutions Holdings, Inc. *		55		1,676
MaxLinear, Inc., Class A *		247		2,107
Micrel, Inc.		71,537		972,903
Microsemi Corp. *		19,154		638,977
MKS Instruments, Inc.		523		18,206
Monolithic Power Systems, Inc.		496		25,708
Nanometrics, Inc. *		425		6,571
NVE Corp.		36		2,443
OmniVision Technologies, Inc. *		791		22,065
PDF Solutions, Inc. *		270		4,879
Photronics, Inc. *		432		3,789
PMC-Sierra, Inc. *		1,362		11,482

24 See financial notes

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Power Integrations, Inc.		378		18,707
Qorvo, Inc. *		1,564		103,083
QuickLogic Corp. *		527		928
Rambus, Inc. *		1,073		14,850
Rubicon Technology, Inc. *		163		626
Rudolph Technologies, Inc. *		600		7,698
Semtech Corp. *		713		16,606
Silicon Laboratories, Inc. *		339		17,516
Synaptics, Inc. *		343		29,059
Tessera Technologies, Inc.		654		23,616
Ultra Clean Holdings, Inc. *		244		1,466
Ultratech, Inc. *		231		4,611
Veeco Instruments, Inc. *		395		11,656
Xcerra Corp. *		694		6,822
				2,284,479
Software & Services 12.5%
A10 Networks, Inc. *		325		1,479
ACI Worldwide, Inc. *		1,393		32,081
Actua Corp. *		78,848		1,140,931
Acxiom Corp. *		688		12,012
Advent Software, Inc.		674		29,258
American Software, Inc., Class A		406		3,942
Angie’s List, Inc. *		432		2,536
Aspen Technology, Inc. *		26,407		1,172,207
AVG Technologies N.V. *		316		7,559
Bankrate, Inc. *		551		6,832
Barracuda Networks, Inc. *		64		2,594
Bazaarvoice, Inc. *		958		5,154
Benefitfocus, Inc. *		40		1,382
Blackbaud, Inc.		615		31,076
Blackhawk Network Holdings, Inc. *		497		18,275
Blucora, Inc. *		643		8,790
Bottomline Technologies de, Inc. *		560		14,986
Brightcove, Inc. *		325		2,249
BroadSoft, Inc. *		386		12,213
CACI International, Inc., Class A *		301		26,560
Callidus Software, Inc. *		1,063		13,128
Carbonite, Inc. *		132		1,352
Cardtronics, Inc. *		40,965		1,545,609
Cass Information Systems, Inc.		37		1,934
ChannelAdvisor Corp. *		195		1,995
Ciber, Inc. *		1,423		5,023
Cimpress N.V. *		301		25,266
CommVault Systems, Inc. *		494		22,600
Computer Task Group, Inc.		166		1,366
comScore, Inc. *		464		24,295
Comverse, Inc. *		197		4,826
Constant Contact, Inc. *		250		8,712
Convergys Corp.		1,033		23,428
Cornerstone OnDemand, Inc. *		524		15,002
Coupons.com, Inc. *		106		1,328
Covisint Corp. *		241		472
Criteo S.A. ADR *		41,880		1,736,345
CSG Systems International, Inc.		346		10,076
Cvent, Inc. *		139		3,736
Cyan, Inc. *		556		2,074
Datalink Corp. *		156		1,803
Dealertrack Technologies, Inc. *		475		18,672
Demand Media, Inc. *		75		481
Demandware, Inc. *		293		18,049
DHI Group, Inc. *		775		5,890
Digimarc Corp.		79		1,849
EarthLink Holdings Corp.		768		3,633
Ebix, Inc.		353		9,633
Ellie Mae, Inc. *		167		9,185
Endurance International Group Holdings, Inc. *		52,673		966,023
EnerNOC, Inc. *		440		4,862
Envestnet, Inc. *		355		18,197
EPAM Systems, Inc. *		311		20,125
Epiq Systems, Inc.		423		7,576
ePlus, Inc. *		28		2,323
Euronet Worldwide, Inc. *		523		30,585
EVERTEC, Inc.		651		13,495
Everyday Health, Inc. *		96		1,177
ExlService Holdings, Inc. *		420		14,461
Fair Isaac Corp.		410		36,269
Fleetmatics Group plc *		21,993		1,002,441
Forrester Research, Inc.		36,009		1,252,753
Gigamon, Inc. *		377		11,095
Global Cash Access Holdings, Inc. *		785		5,809
Global Sources Ltd. *		230		1,274
Glu Mobile, Inc. *		631		4,266
Gogo, Inc. *		544		11,500
GrubHub, Inc. *		189		7,781
GTT Communications, Inc. *		179		3,269
Guidance Software, Inc. *		246		1,437
Guidewire Software, Inc. *		703		35,115
Heartland Payment Systems, Inc.		470		23,923
Higher One Holdings, Inc. *		570		1,602
IGATE Corp. *		336		15,980
Imperva, Inc. *		182		8,303
Infoblox, Inc. *		497		11,709
Interactive Intelligence Group, Inc. *		204		8,972
Internap Corp. *		100,269		942,529
Intralinks Holdings, Inc. *		807		7,909
j2 Global, Inc.		490		33,991
Jive Software, Inc. *		313		1,684
Kofax, Ltd. *		496		5,471
Limelight Networks, Inc. *		612		2,264
Lionbridge Technologies, Inc. *		447		2,481
Liquidity Services, Inc. *		238		2,228
LivePerson, Inc. *		533		5,010
LogMeIn, Inc. *		22,611		1,451,174
Luxoft Holding, Inc. *		38		1,970
Manhattan Associates, Inc. *		19,444		1,021,977
ManTech International Corp., Class A		165		4,823
Marchex, Inc., Class B		207		880
Marin Software, Inc. *		27,291		164,838
Marketo, Inc. *		239		6,800
MAXIMUS, Inc.		35,902		2,298,087
Mentor Graphics Corp.		1,019		24,385
MicroStrategy, Inc., Class A *		122		22,219
Millennial Media, Inc. *		703		1,090
MobileIron, Inc. *		159		957
Model N, Inc. *		157		1,845
ModusLink Global Solutions, Inc. *		891		3,118
MoneyGram International, Inc. *		348		2,697
Monotype Imaging Holdings, Inc.		481		15,589
Monster Worldwide, Inc. *		941		5,542
NetScout Systems, Inc. *		369		15,166
NeuStar, Inc., Class A *		653		19,590

See financial notes 25

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
NIC, Inc.		599		10,183
Pegasystems, Inc.		525		11,308
Perficient, Inc. *		270		5,570
Progress Software Corp. *		541		14,282
Proofpoint, Inc. *		18,344		990,209
PROS Holdings, Inc. *		257		5,713
Q2 Holdings, Inc. *		116		2,361
QAD, Inc., Class A		148		3,608
Qlik Technologies, Inc. *		1,093		38,025
Qualys, Inc. *		152		7,527
QuinStreet, Inc. *		551		2,992
Rally Software Development Corp. *		231		3,340
RealNetworks, Inc. *		271		1,780
RealPage, Inc. *		505		10,019
Reis, Inc.		91		2,068
RetailMeNot, Inc. *		286		5,257
Rightside Group Ltd. *		75		611
Rocket Fuel, Inc. *		170		1,362
Rosetta Stone, Inc. *		128		1,070
Rovi Corp. *		49,550		917,170
Sapiens International Corp. N.V. *		293		2,558
Science Applications International Corp.		375		18,787
SciQuest, Inc. *		370		5,687
Seachange International, Inc. *		550		3,690
ServiceSource International, Inc. *		546		1,949
Shutterstock, Inc. *		38,853		2,622,189
Silver Spring Networks, Inc. *		299		2,906
SPS Commerce, Inc. *		166		10,833
SS&C Technologies Holdings, Inc.		635		38,208
Stamps.com, Inc. *		166		10,274
Sykes Enterprises, Inc. *		329		8,235
Synchronoss Technologies, Inc. *		435		19,958
Syntel, Inc. *		374		16,837
Take-Two Interactive Software, Inc. *		1,059		25,098
Tangoe, Inc. *		530		7,250
TechTarget, Inc. *		391		4,231
TeleCommunication Systems, Inc., Class A *		440		1,373
Telenav, Inc. *		470		3,929
TeleTech Holdings, Inc.		251		6,511
Textura, Corp. *		171		4,475
The Hackett Group, Inc.		327		3,139
The Rubicon Project, Inc. *		125,764		2,197,097
The Ultimate Software Group, Inc. *		293		48,702
TiVo, Inc. *		1,233		13,625
Travelzoo, Inc. *		203		2,667
Tremor Video, Inc. *		389		973
Tyler Technologies, Inc. *		384		46,829
Unisys Corp. *		582		12,670
Unwired Planet, Inc. *		802		473
VASCO Data Security International, Inc. *		391		9,939
VeriFone Systems, Inc. *		25,980		929,305
Verint Systems, Inc. *		576		35,384
VirnetX Holding Corp. *		369		2,384
Virtusa Corp. *		19,961		794,448
Vringo, Inc. *		563		349
Web.com Group, Inc. *		705		12,951
WebMD Health Corp. *		371		16,380
WEX, Inc. *		443		49,931
Wix.com Ltd. *		132		2,570
XO Group, Inc. *		322		5,236
Xoom Corp. *		297		5,248
Zix Corp. *		1,200		5,112
				24,683,359
Technology Hardware & Equipment 5.3%
ADTRAN, Inc.		544		9,036
Agilysys, Inc. *		137		1,289
Alliance Fiber Optic Products, Inc.		175		3,213
Anixter International, Inc. *		285		20,121
Applied Optoelectronics, Inc. *		98		1,399
Aruba Networks, Inc. *		21,122		519,812
Badger Meter, Inc.		136		8,462
Bel Fuse, Inc., Class B		120		2,464
Belden, Inc.		34,293		2,878,897
Benchmark Electronics, Inc. *		533		12,541
Black Box Corp.		134		2,667
CalAmp Corp. *		31,924		629,222
Calix, Inc. *		848		6,267
Checkpoint Systems, Inc.		467		4,838
Ciena Corp. *		1,221		26,007
Clearfield, Inc. *		106		1,436
Cognex Corp. *		862		38,695
Coherent, Inc. *		15,264		915,840
Comtech Telecommunications Corp.		298		8,612
Control4 Corp. *		33,993		398,398
Cray, Inc. *		415		11,657
CTS Corp.		176		3,157
CUI Global, Inc. *		193		1,063
Daktronics, Inc.		790		8,477
Diebold, Inc.		42,640		1,482,593
Dot Hill Systems Corp. *		445		2,795
DTS, Inc. *		346		12,404
Electro Rent Corp.		245		2,656
Electro Scientific Industries, Inc.		263		1,499
Electronics for Imaging, Inc. *		400		16,692
Emulex Corp. *		794		6,368
Extreme Networks, Inc. *		1,418		3,573
Fabrinet *		249		4,509
FARO Technologies, Inc. *		117		4,660
FEI Co.		463		34,938
Finisar Corp. *		1,413		28,726
GSI Group, Inc. *		370		4,914
Harmonic, Inc. *		788		5,524
II-VI, Inc. *		798		14,196
Immersion Corp. *		129		1,397
Infinera Corp. *		1,225		23,030
Insight Enterprises, Inc. *		288		8,243
InterDigital, Inc.		486		26,594
Intevac, Inc. *		212		1,026
InvenSense, Inc. *		666		9,937
Itron, Inc. *		317		11,368
Ixia *		465		5,571
Kemet Corp. *		1,092		4,717
Kimball Electronics, Inc. *		123		1,573
KVH Industries, Inc. *		129		1,740
Littelfuse, Inc.		273		26,751
Maxwell Technologies, Inc. *		343		1,921
Mercury Systems, Inc. *		600		8,286
Mesa Laboratories, Inc.		31		2,632
Methode Electronics, Inc.		461		19,574

26 See financial notes

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
MTS Systems Corp.		124		8,752
Multi-Fineline Electronix, Inc. *		162		3,788
NETGEAR, Inc. *		527		15,952
Newport Corp. *		655		12,491
Nimble Storage, Inc. *		59		1,443
Numerex Corp., Class A *		148		1,627
Oclaro, Inc. *		788		1,513
OSI Systems, Inc. *		237		15,929
Park Electrochemical Corp.		140		3,041
ParkerVision, Inc. *		408		277
PC Connection, Inc.		112		2,720
Plantronics, Inc.		482		25,676
Plexus Corp. *		453		19,502
Polycom, Inc. *		1,014		13,233
Procera Networks, Inc. *		410		4,719
QLogic Corp. *		849		12,480
Quantum Corp. *		1,535		3,085
RealD, Inc. *		627		7,700
Rofin-Sinar Technologies, Inc. *		393		9,298
Rogers Corp. *		112		8,144
Ruckus Wireless, Inc. *		37,169		434,134
Sanmina Corp. *		993		20,188
ScanSource, Inc. *		36,686		1,461,937
ShoreTel, Inc. *		692		4,816
Silicon Graphics International Corp. *		411		3,333
Sonus Networks, Inc. *		415		3,287
Speed Commerce, Inc. *		612		185
Super Micro Computer, Inc. *		479		13,781
SYNNEX Corp.		12,477		954,491
TESSCO Technologies, Inc.		65		1,643
TTM Technologies, Inc. *		856		8,004
Ubiquiti Networks, Inc.		270		7,714
Universal Display Corp. *		493		21,727
ViaSat, Inc. *		418		25,130
Violin Memory, Inc. *		593		2,022
Vishay Precision Group, Inc. *		109		1,555
				10,429,294
Telecommunication Services 2.0%
8x8, Inc. *		83,452		728,536
Atlantic Tele-Network, Inc.		34		2,245
Cincinnati Bell, Inc. *		1,940		6,654
Cogent Communications Holdings, Inc.		575		20,119
Consolidated Communications Holdings, Inc.		541		11,399
FairPoint Communications, Inc. *		420		8,282
General Communication, Inc., Class A *		408		6,471
Globalstar, Inc. *		2,732		7,076
Hawaiian Telcom Holdco, Inc. *		69		1,817
IDT Corp., Class B		265		4,513
inContact, Inc. *		305,350		3,160,373
Inteliquent, Inc.		360		6,844
Intelsat S.A. *		128		1,612
Iridium Communications, Inc. *		770		7,831
Lumos Networks Corp.		101		1,428
magicJack VocalTec Ltd. *		140		910
NTELOS Holdings Corp.		106		616
Premiere Global Services, Inc. *		787		8,035
RingCentral, Inc., Class A *		263		4,531
Shenandoah Telecommunications Co.		209		7,202
Spok Holdings, Inc.		257		4,838
Vonage Holdings Corp. *		1,484		6,871
				4,008,203
Transportation 0.6%
Air Transport Services Group, Inc. *		834		7,773
Allegiant Travel Co.		131		20,143
ArcBest Corp.		334		11,924
Atlas Air Worldwide Holdings, Inc. *		244		11,893
Baltic Trading Ltd.		361		513
Celadon Group, Inc.		131		3,385
Echo Global Logistics, Inc. *		281		8,121
Forward Air Corp.		423		21,306
Golden Ocean Group Ltd.		271		1,350
Hawaiian Holdings, Inc. *		698		16,110
Heartland Express, Inc.		569		11,903
Hub Group, Inc., Class A *		309		12,329
International Shipholding Corp.		71		780
JetBlue Airways Corp. *		2,408		49,436
Knight Transportation, Inc.		414		11,965
Marten Transport Ltd.		113		2,515
Matson, Inc.		322		13,041
Navios Maritime Holdings, Inc.		675		2,558
P.A.M. Transportation Services, Inc. *		48		2,812
Park-Ohio Holdings Corp.		53		2,455
Patriot Transportation Holding, Inc. *		18		465
Quality Distribution, Inc. *		198		1,964
Republic Airways Holdings, Inc. *		835		10,220
Roadrunner Transportation Systems, Inc. *		377		9,225
Safe Bulkers, Inc.		243		870
Saia, Inc. *		260		10,595
Scorpio Bulkers, Inc. *		1,065		2,567
SkyWest, Inc.		318		4,341
Swift Transportation Co. *		1,082		26,184
Ultrapetrol Bahamas Ltd. *		1,100		1,364
Universal Truckload Services, Inc.		73		1,551
UTi Worldwide, Inc. *		87,695		791,886
Virgin America, Inc. *		92		2,644
Werner Enterprises, Inc.		613		16,471
Wesco Aircraft Holdings, Inc. *		447		7,009
XPO Logistics, Inc. *		615		29,827
YRC Worldwide, Inc. *		330		5,148
				1,134,643
Utilities 1.7%
Abengoa Yield plc		477		16,175
ALLETE, Inc.		473		23,792
American States Water Co.		458		17,583
Artesian Resources Corp., Class A		311		6,699
Atlantic Power Corp.		1,045		3,396
Avista Corp.		743		24,237
Black Hills Corp.		521		25,680
California Water Service Group		444		10,598
Chesapeake Utilities Corp.		55		2,628
Cleco Corp.		725		39,404
Connecticut Water Service, Inc.		59		2,124
Dynegy, Inc. *		1,243		41,355
El Paso Electric Co.		450		16,744

See financial notes 27

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
IDACORP, Inc.		546		32,940
MGE Energy, Inc.		265		10,992
Middlesex Water Co.		87		1,981
New Jersey Resources Corp.		22,588		689,160
Northwest Natural Gas Co.		361		16,859
NorthWestern Corp.		410		21,357
NRG Yield, Inc., Class A		207		10,184
ONE Gas, Inc.		395		16,578
Ormat Technologies, Inc.		322		11,782
Otter Tail Corp.		409		12,233
Pattern Energy Group, Inc.		325		9,418
Piedmont Natural Gas Co., Inc.		872		32,648
PNM Resources, Inc.		904		25,113
Portland General Electric Co.		1,011		35,547
SJW Corp.		65		1,901
South Jersey Industries, Inc.		425		22,419
Southwest Gas Corp.		511		28,105
TerraForm Power, Inc., Class A *		175		6,918
The Empire District Electric Co.		430		10,135
The Laclede Group, Inc.		20,325		1,055,477
The York Water Co.		254		6,391
UIL Holdings Corp.		680		33,918
Unitil Corp.		84		2,873
Vivint Solar, Inc. *		386		5,450
WGL Holdings, Inc.		18,565		1,021,262
				3,352,056
Total Common Stock
(Cost $162,091,495)				190,004,547
Other Investment Companies 4.2% of net assets
Equity Fund 0.1%
iShares Russell 2000 ETF		1,016		123,098
Money Market Fund 4.1%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c)		8,131,423		8,131,423
Total Other Investment Companies
(Cost $8,256,591)				8,254,521
Rights 0.0% of net assets
Automobiles & Components 0.0%
Contra Furiex Pharmaceuticals CVR *(d)(e)		66		645
Telecommunication Services 0.0%
Contra Leap Wireless CVR *(d)(e)		861		2,169
Total Rights
(Cost $2,814)				2,814
Warrants 0.0% of net assets
Energy 0.0%
Magnum Hunter Resources Corp. *(d)(e)		129		—
Total Warrants
(Cost $—)				—
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investment 0.0% of net assets
U.S. Treasury Obligation 0.0%
U.S. Treasury Bill
0.09%, 06/04/15 (a)(b)		6,000		6,000
Total Short-Term Investment
(Cost $6,000)				6,000
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $170,416,424 and the unrealized appreciation and depreciation were $37,021,823 and ($9,170,365), respectively, with a net unrealized appreciation of $27,851,458.

*	Non-income producing security.
(a)	All or a portion of this security is held as collateral for open futures contracts.
(b)	The rate shown is the purchase yield.
(c)	The rate shown is the 7-day yield.
(d)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(e)	Illiquid security. At the period end, the value of these amounted to $2,814 or 0.0% of net assets.

ADR —	American Depositary Receipt
CVR —	Contingent Value Rights
ETF —	Exchange Traded Fund
REIT —	Real Estate Investment Trust

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Depreciation
	Contracts		($)		($)
Futures Contracts
Russell 2000 Index, mini, Long, expires 06/19/15		13		1,581,320		(21,925	)

28 See financial notes

 Laudus Small-Cap MarketMasters Fund

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

Assets Valuation Input

	Quoted Prices in					Significant
	Active Markets for			Other Significant		Unobservable
	Identical Assets			Observable Inputs		Inputs
Description	(Level 1)			(Level 2)		(Level 3)		Total
Common Stock1		$190,004,547			$—		$—		$190,004,547
Other Investment Companies1		8,254,521			—		—		8,254,521
Rights1		—			—		2,814		2,814
Warrants1		—			—		—		—
Short-Term Investment1		—			6,000		—		6,000
Total		$198,259,068			$6,000		$2,814		$198,267,882
Liabilities Valuation Input
Other Financial Instruments
Futures Contracts2		($21,925	)		$—		$—		($21,925	)

1	As categorized in Portfolio Holdings.
2	Futures contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Balance				Change in										Balance
	as of		Realized		Unrealized						Gross		Gross		as of
	October 31,		Gains		Appreciation		Gross		Gross		Transfers		Transfers		April 30,
Investments in Securities	2014		(Losses)		(Depreciation)		Purchases		Sales		in		out		2015
Rights		$2,814		$—		$—		$—		$—		$—		$—		$2,814
Total		$2,814		$—		$—		$—		$—		$—		$—		$2,814

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 29

 Laudus Small-Cap MarketMasters Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments, at value (cost $170,356,900)		$198,267,882
Cash		33,930
Deposit with broker for futures contracts		183,400
Receivables:
Investments sold		4,517,228
Fund shares sold		221,500
Dividends		97,635
Prepaid expenses	+	7,530
Total assets		203,329,105
Liabilities
Payables:
Investments bought		867,812
Investment adviser and administrator fees		41,074
Shareholder service fees		4,396
Fund shares redeemed		4,906,934
Variation margin on futures contracts		43,720
Accrued expenses	+	43,493
Total liabilities		5,907,429
Net Assets
Total assets		203,329,105
Total liabilities	−	5,907,429
Net assets		$197,421,676
Net Assets by Source
Capital received from investors		169,372,861
Net investment income not yet distributed		21,994
Net realized capital gains		137,764
Net unrealized capital appreciation		27,889,057
Net Asset Value (NAV) by Shares Class

			Shares
Share Class	Net Assets	÷	Outstanding	=	NAV
Investor Shares	$70,077,667		3,758,872			$18.64
Select Shares	$127,344,009		6,717,863			$18.96

30 See financial notes

 Laudus Small-Cap MarketMasters Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends (net of foreign withholding taxes of $149)		$3,176,216
Interest	+	15
Total investment income		3,176,231
Expenses
Investment adviser and administrator fees		1,153,049
Shareholder service fees:
Investor Shares		86,201
Select Shares		125,707
Portfolio accounting fees		29,079
Transfer agent fees		23,846
Custodian fees		21,958
Professional fees		21,190
Registration fees		12,481
Shareholder reports		10,459
Independent trustees’ fees		3,555
Interest expense		6
Other expenses	+	5,174
Total expenses		1,492,705
Expense reduction by CSIM and its affiliates	−	257,609
Net expenses	−	1,235,096
Net investment income		1,941,135
Realized and Unrealized Gains (Losses)
Net realized losses on investments		(177,025	)
Net realized gains on futures contracts	+	502,441
Net realized gains		325,416
Net change in unrealized appreciation (depreciation) on investments		9,304,924
Net change in unrealized appreciation (depreciation) on futures contracts	+	(178,544	)
Net change in unrealized appreciation (depreciation)	+	9,126,380
Net realized and unrealized gains		9,451,796
Increase in net assets resulting from operations		$11,392,931

See financial notes 31

 Laudus Small-Cap MarketMasters Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income (loss)		$1,941,135			($333,865	)
Net realized gains		325,416			26,752,312
Net change in unrealized appreciation (depreciation)	+	9,126,380			(17,949,435	)
Increase in net assets from operations		11,392,931			8,469,012
Distributions from net investment income
Investor Shares		(112,615	)		—
Select Shares	+	(400,670	)		—
Total distributions from net investment income		(513,285	)		—
Distributions from net realized gains
Investor Shares		(1,348,302	)		—
Select Shares	+	(2,370,239	)		—
Total distributions from net realized gains		(3,718,541	)		—
Total distributions		($4,231,826	)		$—

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares Sold
Investor Shares			61,072		$1,127,001			72,396		$1,292,414
Select Shares	+		589,889		10,795,048			1,598,068		28,503,925
Total shares sold			650,961		$11,922,049			1,670,464		$29,796,339
Shares Reinvested
Investor Shares			76,269		$1,302,677			—		$—
Select Shares	+		156,402		2,715,136			—		—
Total shares reinvested			232,671		$4,017,813			—		$—
					��
Shares Redeemed
Investor Shares			(291,532	)	($5,348,620	)		(547,678	)	($9,687,773	)
Select Shares	+		(689,245	)	(12,911,878	)		(1,362,207	)	(24,624,208	)
Total shares redeemed			(980,777	)	($18,260,498	)		(1,909,885	)	($34,311,981	)
Net transactions in fund shares			(97,145	)	($2,320,636	)		(239,421	)	($4,515,642	)
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			10,573,880		$192,581,207			10,813,301		$188,627,837
Total increase or decrease	+		(97,145	)	4,840,469			(239,421	)	3,953,370
End of period			10,476,735		$197,421,676			10,573,880		$192,581,207
Net investment income not yet distributed/Distributions in excess of net investment income					$21,994					($1,405,856	)

32 See financial notes

Laudus International MarketMasters Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
Investor Shares	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		22.95			23.68			19.03			17.45			18.36			15.04
Income (loss) from investment operations:
Net investment income (loss)		0.06	1		0.25			0.23			0.21			0.16			0.09
Net realized and unrealized gains (losses)		1.34			(0.66	)		4.85			1.52			(0.85	)		3.41
Total from investment operations		1.40			(0.41	)		5.08			1.73			(0.69	)		3.50
Less distributions:
Distributions from net investment income		(0.32	)		(0.32	)		(0.43	)		(0.15	)		(0.22	)		(0.18	)
Net asset value at end of period		24.03			22.95			23.68			19.03			17.45			18.36
Total return (%)		6.23	2		(1.73	)		27.23			10.05			(3.87	)		23.47
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		1.40	3		1.40			1.40			1.53	4		1.59			1.60
Gross operating expenses		1.59	3		1.59			1.60			1.62			1.60			1.62
Net investment income (loss)		0.55	3		1.06			1.10			1.19			0.80			0.53
Portfolio turnover rate		31	2		74			65			68			78			83
Net assets, end of period ($ x 1,000,000)		626			631			675			592			665			849

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
Select Shares	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		22.95			23.68			19.03			17.46			18.38			15.05
Income (loss) from investment operations:
Net investment income (loss)		0.08	1		0.28			0.28			0.25			0.19			0.10
Net realized and unrealized gains (losses)		1.33			(0.65	)		4.83			1.50			(0.86	)		3.43
Total from investment operations		1.41			(0.37	)		5.11			1.75			(0.67	)		3.53
Less distributions:
Distributions from net investment income		(0.35	)		(0.36	)		(0.46	)		(0.18	)		(0.25	)		(0.20	)
Net asset value at end of period		24.01			22.95			23.68			19.03			17.46			18.38
Total return (%)		6.32	2		(1.57	)		27.43			10.20			(3.76	)		23.68
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses		1.25	3		1.25			1.25			1.37	4		1.45			1.48	5
Gross operating expenses		1.51	3		1.47			1.44			1.47			1.47			1.50
Net investment income (loss)		0.70	3		1.20			1.26			1.40			0.99			0.69
Portfolio turnover rate		31	2		74			65			68			78			83
Net assets, end of period ($ x 1,000,000)		1,569			1,592			1,590			1,062			961			948

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Annualized.

⁴ Effective June 6, 2012, the net operating expense limitation was lowered. The ratio presented for period ended 10/31/12 is a blended ratio.

⁵ The ratio of net operating expenses would have been 1.47% if certain non-routine expenses had not been incurred.

See financial notes 33

 Laudus International MarketMasters Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15-20 days after calendar quarters on the fund’s website at www.csimfunds.com/laudusfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	95	.8%	Common Stock		1,762,902,580		2,103,988,678
	0	.3%	Preferred Stock		5,716,195		6,218,156
	3	.4%	Other Investment Companies		75,274,469		74,166,751
	0	.0%	Rights		19,061		19,665
	0	.0%	Short-Term Investments		44,996		45,000
	99	.5%	Total Investments		1,843,957,301		2,184,438,250
	0	.5%	Other Assets and Liabilities, Net				10,768,140
	100	.0%	Net Assets				2,195,206,390

	Number		Value
Security	of Shares		($)
Common Stock 95.8% of net assets
Australia 3.7%
Banks 0.2%
Australia & New Zealand Banking Group Ltd.		108,780		2,910,720
Bank of Queensland Ltd.		2,681		27,531
Bendigo & Adelaide Bank Ltd.		3,249		30,927
Commonwealth Bank of Australia		13,186		922,980
National Australia Bank Ltd.		19,145		554,350
Westpac Banking Corp.		25,286		726,484
				5,172,992
Capital Goods 0.0%
CIMIC Group Ltd.		776		12,850
Commercial & Professional Supplies 0.0%
ALS Ltd.		2,658		10,979
Brambles Ltd.		12,712		108,353
Seek Ltd.		2,421		30,966
				150,298
Consumer Services 0.8%
Aristocrat Leisure Ltd.		1,069,340		6,989,554
Crown Resorts Ltd.		2,906		29,757
Flight Centre Travel Group Ltd.		377		12,893
Invocare Ltd.		582,471		6,155,491
Slater & Gordon Ltd.		583,960		2,924,146
Tabcorp Holdings Ltd.		5,406		20,768
Tatts Group Ltd.		10,662		33,963
				16,166,572
Diversified Financials 0.4%
ASX Ltd.		1,575		52,316
Macquarie Group Ltd.		38,224		2,342,080
Magellan Financial Group Ltd.		343,830		5,396,228
Platinum Asset Management Ltd.		1,696		10,094
				7,800,718
Energy 0.0%
Caltex Australia Ltd.		2,190		61,079
Origin Energy Ltd.		8,976		89,721
Santos Ltd.		7,948		51,760
Woodside Petroleum Ltd.		6,031		166,318
WorleyParsons Ltd.		2,058		18,491
				387,369
Food & Staples Retailing 0.0%
Wesfarmers Ltd.		9,137		314,946
Woolworths Ltd.		10,227		237,447
				552,393
Food, Beverage & Tobacco 0.0%
Coca-Cola Amatil Ltd.		4,658		37,710
Treasury Wine Estates Ltd.		6,454		28,306
				66,016
Health Care Equipment & Services 0.0%
Cochlear Ltd.		419		27,590
Healthscope Ltd.		9,119		20,436
Ramsay Health Care Ltd.		1,049		51,712
Sonic Healthcare Ltd.		3,097		48,536
				148,274
Insurance 0.4%
AMP Ltd.		1,563,186		7,918,275
Insurance Australia Group Ltd.		19,045		87,284
Medibank Pvt Ltd. *		22,305		38,943
QBE Insurance Group Ltd.		10,914		117,716
Suncorp Group Ltd.		10,464		108,212
				8,270,430
Materials 1.0%
Alumina Ltd.		18,530		22,485
Amcor Ltd.		9,814		104,481
BHP Billiton Ltd.		26,121		667,036
Boral Ltd.		6,426		32,010
Fortescue Metals Group Ltd.		12,428		20,995
Iluka Resources Ltd.		4,224		26,917
Incitec Pivot Ltd.		12,206		38,333
Independence Group NL		992,380		4,630,701
Newcrest Mining Ltd. *		6,234		69,880
Orica Ltd.		614,381		9,736,500
Pact Group Holdings Ltd.		1,628,645		5,293,894
Rio Tinto Ltd.		3,544		159,754
				20,802,986
Media 0.0%
REA Group Ltd.		19,532		726,501
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
CSL Ltd.		3,895		279,206
Real Estate 0.8%
Charter Hall Retail REIT		2,363,684		8,029,767
Dexus Property Group		7,364		42,789
Federation Centres		14,474		33,628
Goodman Group		13,831		67,867

34 See financial notes

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Lend Lease Group		81,119		1,024,961
Mirvac Group		30,029		47,573
Novion Property Group		16,560		32,208
Scentre Group		43,302		127,553
Shopping Centres Australasia Property Group		4,411,261		7,409,893
Stockland		18,630		65,112
The GPT Group		13,708		48,311
Westfield Corp.		16,056		119,373
				17,049,035
Retailing 0.0%
Harvey Norman Holdings Ltd.		3,492		12,110
Software & Services 0.0%
Computershare Ltd.		3,845		37,298
Telecommunication Services 0.1%
Telstra Corp., Ltd.		538,081		2,645,045
TPG Telecom Ltd.		2,113		14,825
				2,659,870
Transportation 0.0%
Asciano Ltd.		7,933		41,219
Aurizon Holdings Ltd.		17,383		66,362
Qantas Airways Ltd. *		6,878		18,385
Sydney Airport		8,660		36,788
Toll Holdings Ltd.		5,585		39,529
Transurban Group		14,652		114,551
				316,834
Utilities 0.0%
AGL Energy Ltd.		5,376		64,494
APA Group		9,027		68,271
AusNet Services		11,439		13,301
				146,066
				80,757,818
Austria 0.3%
Banks 0.0%
Erste Group Bank AG		2,235		63,102
Raiffeisen Bank International AG		1,296		21,514
				84,616
Capital Goods 0.0%
ANDRITZ AG		570		33,372
Energy 0.0%
OMV AG		1,175		39,108
Insurance 0.0%
Vienna Insurance Group AG Wiener Versicherung Gruppe		293		11,660
Materials 0.0%
voestalpine AG		912		38,184
Real Estate 0.0%
IMMOFINANZ AG *		6,832		20,552
Semiconductors & Semiconductor Equipment 0.3%
ams AG		137,670		7,484,754
				7,712,246
Belgium 0.3%
Banks 0.0%
KBC Groep N.V. *		2,037		134,021
Diversified Financials 0.0%
Groupe Bruxelles Lambert S.A.		645		56,619
Food & Staples Retailing 0.0%
Colruyt S.A.		560		26,467
Delhaize Group S.A.		833		67,057
				93,524
Food, Beverage & Tobacco 0.1%
Anheuser-Busch InBev N.V.		6,540		796,234
Insurance 0.0%
Ageas		1,774		66,653
Materials 0.1%
Nyrstar N.V. *		730,303		2,871,969
Solvay S.A.		482		70,972
Umicore S.A.		803		39,914
				2,982,855
Media 0.1%
Telenet Group Holding N.V. *		24,086		1,447,456
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
UCB S.A.		1,028		74,050
Telecommunication Services 0.0%
Belgacom S.A.		1,215		45,252
				5,696,664
Brazil 0.4%
Food, Beverage & Tobacco 0.2%
Ambev S.A. ADR		538,966		3,411,655
Insurance 0.1%
BB Seguridade Participacoes S.A.		151,300		1,770,134
Real Estate 0.1%
Iguatemi Empresa de Shopping Centers S.A.		310,300		2,780,696
				7,962,485
Canada 4.7%
Automobiles & Components 0.2%
Linamar Corp.		80,750		4,796,142
Banks 0.1%
The Toronto-Dominion Bank		33,252		1,535,132
Capital Goods 0.4%
CAE, Inc.		694,905		8,622,236
Commercial & Professional Supplies 0.2%
Ritchie Bros. Auctioneers, Inc.		147,234		3,725,697
Diversified Financials 0.1%
CI Financial Corp.		63,450		1,864,846
Energy 1.6%
Canadian Natural Resources Ltd.		168,423		5,596,418
Enbridge, Inc.		95,646		4,999,119
Pason Systems, Inc.		143,739		2,587,659
Raging River Exploration, Inc. *		789,700		6,185,383
Spartan Energy Corp. *		1,646,318		4,653,083

See financial notes 35

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Suncor Energy, Inc.		162,900		5,304,883
Whitecap Resources, Inc.		474,500		5,879,631
				35,206,176
Food & Staples Retailing 0.1%
Alimentation Couche-Tard, Inc., Class B		57,362		2,195,588
Food, Beverage & Tobacco 0.1%
Saputo, Inc.		62,081		1,839,532
Insurance 0.0%
Intact Financial Corp.		12,648		974,205
Materials 0.5%
CCL Industries, Inc., Class B		76,890		8,839,960
Interfor Corp. *		205,330		2,939,121
				11,779,081
Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Concordia Healthcare Corp.		128,670		9,022,364
Valeant Pharmaceuticals International, Inc. *		4,676		1,014,365
				10,036,729
Real Estate 0.5%
Brookfield Asset Management, Inc., Class A		51,468		2,771,552
FirstService Corp.		54,130		3,543,462
Morguard Real Estate Investment Trust		135,490		1,945,037
Northern Property Real Estate Investment Trust		173,400		3,607,410
				11,867,461
Retailing 0.1%
Dollarama, Inc.		27,852		1,599,326
Software & Services 0.2%
Constellation Software, Inc.		1,983		777,422
The Descartes Systems Group, Inc. *		287,490		4,320,094
				5,097,516
Transportation 0.1%
Canadian National Railway Co.		22,849		1,474,217
Canadian Pacific Railway Ltd.		7,755		1,477,948
				2,952,165
				104,091,832
China 3.4%
Automobiles & Components 0.5%
Brilliance China Automotive Holdings Ltd.		376,000		705,650
Nexteer Automotive Group Ltd. (f)		9,163,000		10,327,665
				11,033,315
Banks 0.1%
China Merchants Bank Co., Ltd., Class H		818,000		2,455,342
Capital Goods 0.1%
EVA Precision Industrial Holdings Ltd.		9,128,000		2,962,442
Energy 0.1%
CNOOC Ltd.		996,000		1,698,391
Food, Beverage & Tobacco 0.2%
Biostime International Holdings Ltd.		903,500		4,141,037
Insurance 0.3%
Ping An Insurance (Group) Co. of China Ltd., Class H		476,500		6,814,539
Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Lijun International Pharmaceutical Holding Co., Ltd.		6,230,000		2,756,080
WuXi PharmaTech Cayman, Inc. ADR *		19,868		857,702
				3,613,782
Real Estate 0.1%
China Overseas Land & Investment Ltd.		550,000		2,290,959
Retailing 0.1%
Vipshop Holdings Ltd. ADR *		67,049		1,896,816
Semiconductors & Semiconductor Equipment 0.2%
Xinyi Solar Holdings Ltd.		11,800,000		4,125,726
Software & Services 0.4%
Alibaba Group Holding Ltd. ADR *		13,516		1,098,716
Baidu, Inc. ADR *		8,020		1,606,245
NetEase, Inc. ADR		17,188		2,203,330
Tencent Holdings Ltd.		207,100		4,274,310
YY, Inc. ADR *		10,560		671,194
				9,853,795
Technology Hardware & Equipment 0.9%
Lenovo Group Ltd.		2,134,000		3,669,563
PAX Global Technology Ltd. *		6,400,000		9,297,900
Wasion Group Holdings Ltd.		3,616,000		5,702,038
				18,669,501
Utilities 0.2%
CT Environmental Group Ltd.		3,148,000		4,410,336
				73,965,981
Denmark 1.7%
Banks 0.1%
Danske Bank A/S		5,332		151,219
Sydbank A/S		78,730		2,955,374
				3,106,593
Capital Goods 0.0%
Vestas Wind Systems A/S		1,792		81,281
Commercial & Professional Supplies 0.0%
ISS A/S		1,179		39,825
Consumer Durables & Apparel 0.2%
Pandora A/S		31,562		3,262,295
Food, Beverage & Tobacco 0.3%
Carlsberg A/S, Class B		870		79,317
Royal Unibrew A/S *		31,880		6,103,034
				6,182,351
Health Care Equipment & Services 0.1%
Coloplast A/S, Class B		21,013		1,715,167
William Demant Holding A/S *		203		16,700
				1,731,867

36 See financial notes

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Insurance 0.0%
Tryg A/S		172		18,678
Materials 0.8%
Chr. Hansen Holding A/S		311,947		15,101,972
Novozymes A/S, B Shares		34,994		1,614,501
				16,716,473
Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Novo Nordisk A/S, Class B		86,767		4,871,158
Telecommunication Services 0.0%
TDC A/S		6,604		50,279
Transportation 0.0%
AP Moeller - Maersk A/S, Series A		31		59,765
AP Moeller - Maersk A/S, Series B		58		115,106
DSV A/S		1,440		49,953
				224,824
				36,285,624
Finland 0.6%
Automobiles & Components 0.0%
Nokian Renkaat Oyj		828		26,907
Capital Goods 0.3%
Kone Oyj, Class B		55,807		2,400,907
Metso Oyj		828		23,537
Uponor Oyj		250,345		3,855,254
Wartsila Oyj Abp		1,183		54,276
				6,333,974
Energy 0.0%
Neste Oil Oyj		995		27,062
Insurance 0.3%
Sampo Oyj, A Shares		151,353		7,333,695
Materials 0.0%
Stora Enso Oyj, R Shares		4,106		43,208
UPM-Kymmene Oyj		4,259		77,065
				120,273
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Orion Oyj, Class B		820		26,813
Technology Hardware & Equipment 0.0%
Nokia Oyj		30,459		205,520
Telecommunication Services 0.0%
Elisa Oyj		1,048		32,106
Utilities 0.0%
Fortum Oyj		3,613		71,347
				14,177,697
France 8.3%
Automobiles & Components 0.3%
Compagnie Generale des Etablissements Michelin		1,515		168,947
Montupet		44,950		3,168,075
Peugeot S.A. *		3,124		59,061
Plastic Omnium S.A.		23,504		654,502
Renault S.A.		1,563		164,455
Valeo S.A.		19,246		3,085,512
				7,300,552
Banks 1.1%
BNP Paribas S.A.		363,756		22,971,653
Credit Agricole S.A.		8,138		126,614
Natixis S.A.		7,451		61,675
Societe Generale S.A.		5,856		292,769
				23,452,711
Capital Goods 0.6%
Alstom S.A. *		1,729		54,315
Bouygues S.A.		1,533		63,290
Compagnie de Saint-Gobain		3,612		164,155
Legrand S.A.		2,160		124,897
LISI (f)		184,429		5,692,796
Rexel S.A.		2,021		38,089
Safran S.A.		89,262		6,522,136
Schneider Electric SE		4,240		316,933
Thales S.A.		743		45,231
Vallourec S.A.		807		19,030
Vinci S.A.		3,932		241,168
Zodiac Aerospace		1,486		54,571
				13,336,611
Commercial & Professional Supplies 0.4%
Bureau Veritas S.A.		2,447		57,621
Edenred		1,654		44,343
Societe BIC S.A.		232		39,739
Teleperformance		119,890		9,012,707
				9,154,410
Consumer Durables & Apparel 1.2%
Christian Dior SE		17,743		3,468,773
Hermes International		4,146		1,563,576
Kering		74,506		13,778,889
LVMH Moet Hennessy Louis Vuitton SE		43,574		7,619,622
				26,430,860
Consumer Services 0.0%
Accor S.A.		1,698		93,109
Sodexo S.A.		767		77,613
				170,722
Diversified Financials 0.0%
Eurazeo S.A.		263		18,825
Wendel S.A.		257		31,566
				50,391
Energy 0.6%
Gaztransport Et Technigaz S.A.		160,197		9,587,454
Technip S.A.		818		55,765
Total S.A.		72,861		3,945,420
				13,588,639
Food & Staples Retailing 0.0%
Carrefour S.A.		4,463		153,879
Casino Guichard Perrachon S.A.		452		39,969
				193,848
Food, Beverage & Tobacco 0.9%
Danone S.A.		163,642		11,841,479
Pernod-Ricard S.A.		60,627		7,534,958

See financial notes 37

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Remy Cointreau S.A.		159		11,963
				19,388,400
Health Care Equipment & Services 0.4%
Essilor International S.A.		26,724		3,255,786
Korian-Medica		178,637		6,099,715
				9,355,501
Household & Personal Products 0.0%
L’Oreal S.A.		2,044		390,079
Insurance 0.3%
AXA S.A.		267,156		6,755,263
CNP Assurances		1,416		25,450
SCOR SE		1,249		44,954
				6,825,667
Materials 0.0%
Air Liquide S.A.		2,799		366,054
Arkema S.A.		477		38,386
Imerys S.A.		265		20,170
Lafarge S.A.		1,519		110,833
				535,443
Media 0.2%
Eutelsat Communications S.A.		1,230		42,883
JC Decaux S.A.		531		20,976
Lagardere S.C.A.		1,178		37,815
Numericable-SFR SAS *		804		44,692
Publicis Groupe S.A.		37,236		3,123,003
Vivendi S.A.		9,843		246,751
				3,516,120
Pharmaceuticals, Biotechnology & Life Sciences 0.7%
Boiron S.A. (f)		58,498		6,527,066
Eurofins Scientific SE		23,968		6,751,419
Sanofi		9,647		981,972
				14,260,457
Real Estate 0.6%
Fonciere Des Regions		232		21,963
Gecina S.A.		226		30,994
ICADE		305		26,528
Klepierre		1,400		67,908
Nexity S.A.		184,020		8,081,497
Unibail-Rodamco SE		12,856		3,549,676
				11,778,566
Semiconductors & Semiconductor Equipment 0.0%
STMicroelectronics N.V.		5,184		41,345
Software & Services 0.4%
Atos SE		644		50,336
Cap Gemini S.A.		44,437		3,959,138
Criteo S.A. ADR *		97,040		4,023,278
Dassault Systemes S.A.		1,011		77,904
				8,110,656
Technology Hardware & Equipment 0.2%
Alcatel-Lucent *		22,888		79,467
Ingenico		34,088		4,277,110
				4,356,577
Telecommunication Services 0.0%
Iliad S.A.		209		49,364
Orange S.A.		15,081		248,404
				297,768
Transportation 0.0%
Aeroports de Paris		237		29,215
Bollore S.A.		7,010		40,063
Groupe Eurotunnel SE - Reg’d		3,802		60,956
				130,234
Utilities 0.4%
Electricite de France S.A.		1,934		49,210
GDF Suez		11,774		239,558
Rubis S.C.A.		118,841		8,074,525
Suez Environnement Co.		2,240		45,686
Veolia Environnement S.A.		3,374		71,394
				8,480,373
				181,145,930
Germany 8.1%
Automobiles & Components 2.1%
Bayerische Motoren Werke AG		155,982		18,400,353
Continental AG		20,933		4,905,745
Daimler AG - Reg’d		166,631		16,021,016
ElringKlinger AG		195,602		5,384,806
Volkswagen AG		236		59,782
				44,771,702
Banks 0.1%
Aareal Bank AG		67,150		2,888,235
Commerzbank AG *		7,871		106,187
				2,994,422
Capital Goods 1.9%
Brenntag AG		36,630		2,197,824
Duerr AG		38,510		3,941,794
GEA Group AG		1,487		71,415
MAN SE		281		30,487
MTU Aero Engines AG		126,460		12,431,844
Norma Group SE		227,069		12,061,372
OSRAM Licht AG		640		33,718
Rational AG		10,911		3,845,366
Siemens AG - Reg’d		6,449		701,535
Stabilus S.A. *(f)		159,754		5,564,170
				40,879,525
Consumer Durables & Apparel 0.1%
adidas AG		19,602		1,606,107
Hugo Boss AG		541		66,570
				1,672,677
Consumer Services 0.0%
TUI AG		3,665		68,340
Diversified Financials 0.2%
Aurelius AG		93,060		4,462,209
Deutsche Bank AG - Reg’d		11,219		358,804
Deutsche Boerse AG		1,570		130,096
				4,951,109
Food & Staples Retailing 0.0%
METRO AG		1,294		46,901
Health Care Equipment & Services 0.0%
Celesio AG		385		11,425
Fresenius Medical Care AG & Co. KGaA		1,760		147,913

38 See financial notes

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Fresenius SE & Co. KGaA		3,071		182,703
				342,041
Household & Personal Products 0.0%
Beiersdorf AG		807		70,197
Henkel AG & Co. KGaA		951		96,332
				166,529
Insurance 0.9%
Allianz SE - Reg’d		117,613		20,019,453
Hannover Rueck SE		482		48,996
Muenchener Rueckversicherungs-Gesellschaft AG - Reg’d		1,407		274,643
				20,343,092
Materials 0.6%
BASF SE		30,401		3,020,279
HeidelbergCement AG		1,146		87,967
K&S AG - Reg’d		1,401		45,672
LANXESS AG		685		36,562
Linde AG		1,510		295,068
Symrise AG		171,848		10,419,724
ThyssenKrupp AG		3,682		97,829
				14,003,101
Media 0.7%
Axel Springer SE		304		16,960
CTS Eventim AG & Co. KGaA		177,600		6,077,268
Kabel Deutschland Holding AG *		176		23,587
ProSiebenSat.1 Media AG - Reg’d		90,960		4,650,526
Stroeer Media SE		123,670		4,572,359
				15,340,700
Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Bayer AG - Reg’d		18,969		2,730,257
Merck KGaA		1,051		113,303
QIAGEN N.V. *		161,791		3,890,332
				6,733,892
Real Estate 0.1%
Deutsche Annington Immobilien SE		27,441		921,060
Deutsche Wohnen AG		33,568		880,478
				1,801,538
Retailing 0.3%
Fielmann AG		81,829		5,558,343
Semiconductors & Semiconductor Equipment 0.0%
Infineon Technologies AG		9,171		107,821
Software & Services 0.8%
SAP SE		67,994		5,137,966
United Internet AG - Reg’d		982		43,904
Wirecard AG		279,534		12,276,893
				17,458,763
Telecommunication Services 0.0%
Deutsche Telekom AG - Reg’d		26,105		479,827
Telefonica Deutschland Holding AG		4,887		30,288
				510,115
Transportation 0.0%
Deutsche Lufthansa AG - Reg’d *		1,836		25,322
Deutsche Post AG - Reg’d		7,871		259,178
Fraport AG Frankfurt Airport Services Worldwide		285		18,026
				302,526
Utilities 0.0%
E.ON SE		16,274		253,353
RWE AG		3,980		98,901
				352,254
				178,405,391
Hong Kong 2.2%
Banks 0.0%
BOC Hong Kong (Holdings) Ltd.		30,000		116,362
Hang Seng Bank Ltd.		6,200		120,787
The Bank of East Asia Ltd.		10,200		44,253
				281,402
Capital Goods 0.2%
Haitian International Holdings Ltd.		1,714,000		4,262,954
Hutchison Whampoa Ltd.		17,000		250,485
Noble Group Ltd.		34,000		22,141
NWS Holdings Ltd.		12,000		20,365
				4,555,945
Consumer Durables & Apparel 0.2%
Li & Fung Ltd.		48,000		48,887
Man Wah Holdings Ltd.		2,475,200		3,211,505
Techtronic Industries Co., Ltd.		370,500		1,311,161
Yue Yuen Industrial Holdings Ltd.		6,000		22,798
				4,594,351
Consumer Services 0.3%
Galaxy Entertainment Group Ltd.		19,000		91,312
Melco Crown Entertainment Ltd. ADR		331,400		6,767,188
MGM China Holdings Ltd.		7,600		14,346
Sands China Ltd.		19,600		79,897
Shangri-La Asia Ltd.		8,000		12,133
SJM Holdings Ltd.		15,683		19,884
Wynn Macau Ltd.		12,400		25,100
				7,009,860
Diversified Financials 0.1%
First Pacific Co., Ltd.		24,000		23,286
Hong Kong Exchanges & Clearing Ltd.		66,300		2,527,371
				2,550,657
Food, Beverage & Tobacco 0.0%
WH Group Ltd. *		26,000		18,148
Insurance 0.4%
AIA Group Ltd.		1,372,800		9,129,771
Real Estate 0.2%
CK Hutchison Holdings Ltd.		125,410		2,720,415
Hang Lung Properties Ltd.		18,000		60,850
Henderson Land Development Co., Ltd.		8,294		66,494
Hysan Development Co., Ltd.		6,000		27,724
Kerry Properties Ltd.		6,000		24,488
New World Development Co., Ltd.		42,000		55,707
Sino Land Co., Ltd.		24,000		42,225
Sun Hung Kai Properties Ltd.		13,702		227,570

See financial notes 39

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Swire Pacific Ltd., Class A		5,000		67,436
Swire Properties Ltd.		9,400		32,294
The Link REIT		19,000		117,857
The Wharf Holdings Ltd.		12,349		88,976
Wheelock & Co., Ltd.		7,000		39,416
				3,571,452
Semiconductors & Semiconductor Equipment 0.2%
ASM Pacific Technology Ltd.		241,200		2,692,097
Technology Hardware & Equipment 0.3%
AAC Technologies Holdings, Inc.		1,141,000		6,023,000
China High Precision Automation Group Ltd. *(a)(f)		766,000		—
				6,023,000
Telecommunication Services 0.2%
HKBN Ltd. *		2,947,483		3,810,540
HKT Trust & HKT Ltd.		21,120		28,235
PCCW Ltd.		28,000		18,641
				3,857,416
Transportation 0.1%
Cathay Pacific Airways Ltd.		10,000		25,750
MTR Corp., Ltd.		12,000		58,977
Pacific Basin Shipping Ltd.		6,725,000		2,490,415
				2,575,142
Utilities 0.0%
Cheung Kong Infrastructure Holdings Ltd.		4,574		38,748
CLP Holdings Ltd.		15,500		135,683
Hong Kong & China Gas Co., Ltd.		51,494		122,659
Power Assets Holdings Ltd.		11,500		116,074
				413,164
				47,272,405
India 1.4%
Automobiles & Components 0.3%
Bharat Forge Ltd.		157,730		3,109,415
Maruti Suzuki India Ltd.		18,970		1,111,714
Tata Motors Ltd.		192,235		1,541,084
Tata Motors Ltd., Interim Shares (a)		10,581		84,670
				5,846,883
Banks 0.5%
Axis Bank Ltd.		214,880		1,918,185
HDFC Bank Ltd.		117,079		1,823,686
Housing Development Finance Corp., Ltd.		69,890		1,285,494
IndusInd Bank Ltd.		383,780		4,973,140
				10,000,505
Diversified Financials 0.2%
SKS Microfinance Ltd. *		629,430		4,650,990
Household & Personal Products 0.1%
Hindustan Unilever Ltd.		160,190		2,143,410
Materials 0.0%
UltraTech Cement Ltd.		15,262		641,349
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Sun Pharmaceutical Industries Ltd.		166,474		2,457,102
Real Estate 0.1%
Oberoi Realty Ltd.		719,120		3,035,736
Software & Services 0.1%
Infosys Ltd.		53,658		1,637,895
Transportation 0.0%
Adani Ports & Special Economic Zone Ltd.		153,525		766,258
				31,180,128
Indonesia 0.2%
Banks 0.0%
PT Bank Rakyat Indonesia (Persero) Tbk		959,200		856,374
Retailing 0.2%
PT Matahari Department Store Tbk		3,363,500		4,523,600
				5,379,974
Ireland 1.1%
Banks 0.1%
Bank of Ireland *		220,385		85,195
Permanent TSB Group Holdings plc *		298,164		1,673,967
				1,759,162
Capital Goods 0.0%
Kingspan Group plc		37,303		740,097
Commercial & Professional Supplies 0.6%
Experian plc		693,781		12,391,117
Food, Beverage & Tobacco 0.3%
Glanbia plc (e)		3,091		57,285
Glanbia plc (e)		358,556		6,683,236
Kerry Group plc, Class A		1,287		94,662
				6,835,183
Materials 0.1%
CRH plc		6,589		185,135
Smurfit Kappa Group plc		50,219		1,537,529
				1,722,664
				23,448,223
Israel 1.1%
Banks 0.0%
Bank Hapoalim B.M.		8,587		42,952
Bank Leumi Le-Israel B.M. *		10,786		41,921
Mizrahi Tefahot Bank Ltd. *		884		9,888
				94,761
Capital Goods 0.2%
Caesarstone Sdot-Yam Ltd.		74,520		4,414,565
Energy 0.0%
Delek Group Ltd.		31		8,648
Materials 0.2%
Frutarom Industries Ltd.		116,880		4,970,349
Israel Chemicals Ltd.		3,543		24,789
The Israel Corp., Ltd.		35		12,892
				5,008,030

40 See financial notes

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Teva Pharmaceutical Industries Ltd.		6,954		422,555
Teva Pharmaceutical Industries Ltd. ADR		79,589		4,808,767
				5,231,322
Semiconductors & Semiconductor Equipment 0.2%
Mellanox Technologies Ltd. *		87,810		4,082,287
Software & Services 0.3%
Check Point Software Technologies Ltd. *		70,878		5,916,896
NICE-Systems Ltd.		537		32,279
				5,949,175
Telecommunication Services 0.0%
Bezeq The Israeli Telecommunication Corp., Ltd.		13,894		26,316
				24,815,104
Italy 3.0%
Automobiles & Components 0.0%
Pirelli & C. S.p.A.		1,854		32,078
Banks 1.0%
Banca Monte dei Paschi di Siena S.p.A. *		32,176		19,830
Banco Popolare SC *		2,946		46,575
Intesa Sanpaolo S.p.A.		6,580,154		22,106,031
UniCredit S.p.A.		35,902		257,709
Unione di Banche Italiane S.C.p.A.		6,967		55,300
				22,485,445
Capital Goods 0.3%
Finmeccanica S.p.A. *		3,291		41,990
Interpump Group S.p.A.		361,960		6,086,979
Prysmian S.p.A.		1,487		30,324
				6,159,293
Consumer Durables & Apparel 0.8%
Luxottica Group S.p.A.		1,361		89,631
Prada S.p.A.		1,787,100		9,702,402
Salvatore Ferragamo S.p.A.		220,070		6,843,433
				16,635,466
Diversified Financials 0.9%
Azimut Holding S.p.A.		24,759		726,743
Banca Generali S.p.A.		413,804		13,888,186
EXOR S.p.A.		91,885		4,239,030
Mediobanca S.p.A.		4,816		46,752
				18,900,711
Energy 0.0%
Eni S.p.A.		20,690		396,955
Saipem S.p.A. *		2,112		28,001
Tenaris S.A.		3,841		58,976
				483,932
Insurance 0.0%
Assicurazioni Generali S.p.A.		9,497		185,564
UnipolSai S.p.A.		7,022		19,650
				205,214
Retailing 0.0%
Yoox S.p.A. *		22,677		714,326
Telecommunication Services 0.0%
Telecom Italia S.p.A. *		81,842		96,595
Telecom Italia S.p.A. - RSP		49,011		47,168
				143,763
Transportation 0.0%
Atlantia S.p.A.		3,358		94,444
Utilities 0.0%
Enel Green Power S.p.A.		13,956		27,100
Enel S.p.A.		53,535		253,753
Snam S.p.A.		16,502		85,961
Terna - Rete Elettrica Nationale S.p.A.		12,062		56,864
				423,678
				66,278,350
Japan 15.0%
Automobiles & Components 3.2%
Aisin Seiki Co., Ltd.		1,500		68,592
Bridgestone Corp.		5,300		221,983
Daihatsu Motor Co., Ltd.		1,600		23,177
Denso Corp.		3,900		193,618
F.C.C. Co., Ltd.		234,200		3,799,757
Fuji Heavy Industries Ltd.		151,700		5,072,846
Honda Motor Co., Ltd.		576,007		19,310,842
Isuzu Motors Ltd.		4,800		63,618
Koito Manufacturing Co., Ltd.		885		30,968
Mazda Motor Corp.		4,400		86,249
Mitsubishi Motors Corp.		5,100		46,926
Musashi Seimitsu Industry Co., Ltd.		164,900		3,490,338
NGK Spark Plug Co., Ltd.		1,400		39,205
NHK Spring Co., Ltd.		1,000		11,449
Nifco, Inc.		462,800		16,390,622
Nissan Motor Co., Ltd.		20,200		209,690
NOK Corp.		900		28,283
Stanley Electric Co., Ltd.		1,400		31,413
Sumitomo Electric Industries Ltd.		6,100		86,182
Sumitomo Rubber Industries Ltd.		1,200		22,250
Suzuki Motor Corp.		3,000		96,966
The Yokohama Rubber Co., Ltd.		2,000		21,521
Toyoda Gosei Co., Ltd.		400		9,255
Toyota Industries Corp.		1,314		74,417
Toyota Motor Corp.		291,477		20,289,457
Yamaha Motor Co., Ltd.		2,100		49,418
				69,769,042
Banks 0.4%
Aozora Bank Ltd.		9,000		33,664
Fukuoka Financial Group, Inc.		6,000		34,471
Hokuhoku Financial Group, Inc.		9,000		21,523
Mitsubishi UFJ Financial Group, Inc.		103,600		736,011
Mizuho Financial Group, Inc.		187,200		356,856
Resona Holdings, Inc.		17,700		94,378
Seven Bank Ltd.		4,100		22,090
Shinsei Bank Ltd.		13,000		26,602
Sumitomo Mitsui Financial Group, Inc.		116,400		5,082,558
Sumitomo Mitsui Trust Holdings, Inc.		27,000		118,852

See financial notes 41

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Suruga Bank Ltd.		106,400		2,345,416
The Bank of Kyoto Ltd.		3,000		32,704
The Bank of Yokohama Ltd.		9,000		57,119
The Chiba Bank Ltd.		6,000		49,310
The Chugoku Bank Ltd.		1,500		24,099
The Gunma Bank Ltd.		3,050		21,598
The Hachijuni Bank Ltd.		3,311		25,812
The Hiroshima Bank Ltd.		5,000		29,204
The Iyo Bank Ltd.		2,300		28,651
The Joyo Bank Ltd.		5,000		27,350
The Shizuoka Bank Ltd.		4,454		49,035
Yamaguchi Financial Group, Inc.		1,274		15,969
				9,233,272
Capital Goods 2.5%
Aica Kogyo Co., Ltd.		237,100		5,445,334
Amada Holdings Co., Ltd.		3,500		35,319
Asahi Glass Co., Ltd.		8,000		53,840
Chiyoda Corp.		1,417		12,859
Daikin Industries Ltd.		59,100		3,981,509
FANUC Corp.		15,199		3,343,213
Fuji Electric Co., Ltd.		155,000		730,964
Hino Motors Ltd.		2,100		27,396
Hitachi Construction Machinery Co., Ltd.		700		12,428
Hoshizaki Electric Co., Ltd.		86,600		5,094,847
IHI Corp.		11,000		50,431
ITOCHU Corp.		13,400		164,995
JGC Corp.		2,000		41,622
JTEKT Corp.		1,700		28,954
Kajima Corp.		6,000		28,661
Kawasaki Heavy Industries Ltd.		11,000		56,692
Keihan Electric Railway Co., Ltd.		4,126		23,930
Komatsu Ltd.		59,100		1,189,040
Kubota Corp.		9,000		140,859
Kurita Water Industries Ltd.		900		23,386
LIXIL Group Corp.		2,100		43,771
Mabuchi Motor Co., Ltd.		400		23,951
Makita Corp.		1,000		49,904
Marubeni Corp.		13,245		82,014
Minebea Co., Ltd.		106,711		1,636,214
MISUMI Group, Inc.		143,900		5,400,297
Mitsubishi Corp.		11,449		247,032
Mitsubishi Electric Corp.		16,000		208,955
Mitsubishi Heavy Industries Ltd.		25,000		138,518
Mitsui & Co., Ltd.		13,800		193,009
Nabtesco Corp.		800		22,003
NGK Insulators Ltd.		2,000		44,927
Nidec Corp.		30,700		2,296,506
NSK Ltd.		4,000		62,471
Obayashi Corp.		5,000		33,397
OSG Corp.		330,700		6,875,868
Sanwa Holdings Corp.		843,300		6,364,701
Seibu Holdings, Inc.		900		26,065
Shimizu Corp.		5,000		35,959
SMC Corp.		5,337		1,605,486
Sumitomo Corp.		9,000		106,269
Sumitomo Heavy Industries Ltd.		5,000		31,065
Tadano Ltd.		38,000		551,230
Taisei Corp.		8,000		46,343
Takeuchi Manufacturing Co., Ltd.		85,100		4,121,401
THK Co., Ltd.		1,100		27,633
Toshiba Corp.		33,000		132,216
TOTO Ltd.		2,313		32,723
Toyota Tsusho Corp.		1,700		43,710
Tsugami Corp.		752,000		4,394,766
				55,364,683
Commercial & Professional Supplies 1.0%
Dai Nippon Printing Co., Ltd.		5,000		51,653
Meitec Corp.		34,900		1,123,881
Nihon M&A Center, Inc.		201,700		7,019,045
Park24 Co., Ltd.		600		11,984
Recruit Holdings Co., Ltd.		21,600		727,169
Secom Co., Ltd.		67,000		4,748,381
Sohgo Security Services Co., Ltd.		79,600		2,594,766
Temp Holdings Co., Ltd.		162,900		5,159,550
Toppan Printing Co., Ltd.		4,000		33,537
				21,469,966
Consumer Durables & Apparel 0.4%
Asics Corp.		1,200		30,792
Bandai Namco Holdings, Inc.		1,400		28,761
Casio Computer Co., Ltd.		43,036		870,116
Haseko Corp.		668,700		6,602,936
Iida Group Holdings Co., Ltd.		1,313		17,623
Nikon Corp.		2,700		38,390
Panasonic Corp.		17,900		256,397
Rinnai Corp.		300		22,762
Sankyo Co., Ltd.		300		11,363
Sega Sammy Holdings, Inc.		1,800		25,129
Sekisui Chemical Co., Ltd.		3,000		40,002
Sekisui House Ltd.		4,355		67,505
Sharp Corp. *		11,419		24,607
Shimano, Inc.		645		92,397
Sony Corp. *		9,200		278,132
Yamaha Corp.		1,100		19,989
				8,426,901
Consumer Services 0.1%
Benesse Holdings, Inc.		500		15,670
Kyoritsu Maintenance Co., Ltd.		64,900		3,134,761
McDonald’s Holdings Co., Ltd.		400		8,684
Oriental Land Co., Ltd.		1,600		108,321
				3,267,436
Diversified Financials 1.4%
Acom Co., Ltd. *		3,100		10,293
AEON Financial Service Co., Ltd.		1,100		28,042
Credit Saison Co., Ltd.		1,500		28,365
Daiwa Securities Group, Inc.		2,006,000		16,641,400
Japan Exchange Group, Inc.		2,100		60,673
Mitsubishi UFJ Lease & Finance Co., Ltd.		4,700		25,212
Nomura Holdings, Inc.		318,900		2,068,836
ORIX Corp.		371,800		5,717,684
SBI Holdings, Inc.		1,936		25,682
Zenkoku Hosho Co., Ltd.		196,100		7,239,948
				31,846,135
Energy 0.0%
Idemitsu Kosan Co., Ltd.		600		11,623
Inpex Corp.		7,100		89,107
JX Holdings, Inc.		18,000		78,384
Showa Shell Sekiyu K.K.		1,200		11,576
TonenGeneral Sekiyu K.K.		2,367		22,717
				213,407

42 See financial notes

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Food & Staples Retailing 0.1%
Aeon Co., Ltd.		5,100		63,449
FamilyMart Co., Ltd.		600		25,838
Lawson, Inc.		529		38,040
Seven & i Holdings Co., Ltd.		6,100		262,204
Tsuruha Holdings, Inc.		17,100		1,240,241
				1,629,772
Food, Beverage & Tobacco 0.3%
Ajinomoto Co., Inc.		4,578		101,506
Ariake Japan Co., Ltd.		128,200		4,264,945
Asahi Group Holdings Ltd.		47,300		1,521,028
Calbee, Inc.		700		28,500
Japan Tobacco, Inc.		8,900		310,796
Kikkoman Corp.		1,314		37,474
Kirin Holdings Co., Ltd.		6,600		87,359
MEIJI Holdings Co., Ltd.		500		57,440
NH Foods Ltd.		2,000		43,697
Nisshin Seifun Group, Inc.		1,900		22,158
Nissin Foods Holdings Co., Ltd.		600		28,768
Suntory Beverage & Food Ltd.		1,100		46,783
Toyo Suisan Kaisha Ltd.		665		23,268
Yakult Honsha Co., Ltd.		700		44,023
Yamazaki Baking Co., Ltd.		1,000		17,701
				6,635,446
Health Care Equipment & Services 1.2%
Alfresa Holdings Corp.		1,200		17,984
Asahi Intecc Co., Ltd.		88,400		5,443,956
Hogy Medical Co., Ltd.		88,400		4,256,079
M3, Inc.		346,100		6,539,725
Medipal Holdings Corp.		800		10,914
Miraca Holdings, Inc.		100,700		5,066,160
Olympus Corp. *		73,600		2,650,334
Suzuken Co., Ltd.		700		21,905
Sysmex Corp.		49,500		2,738,920
Terumo Corp.		2,500		64,212
				26,810,189
Household & Personal Products 0.3%
Kao Corp.		100,600		4,817,631
Pola Orbis Holdings, Inc.		12,900		669,333
Shiseido Co., Ltd.		2,900		52,238
Unicharm Corp.		29,400		740,002
				6,279,204
Insurance 0.0%
MS&AD Insurance Group Holdings, Inc.		4,110		117,616
Sompo Japan Nipponkoa Holdings, Inc.		2,700		88,208
Sony Financial Holdings, Inc.		1,400		25,134
T&D Holdings, Inc.		4,600		66,377
The Dai-ichi Life Insurance Co., Ltd.		8,600		141,349
Tokio Marine Holdings, Inc.		5,600		228,288
				666,972
Materials 0.4%
Air Water, Inc.		1,278		22,698
Asahi Kasei Corp.		516,463		4,863,340
Daicel Corp.		109,200		1,316,528
Hitachi Chemical Co., Ltd.		700		13,549
Hitachi Metals Ltd.		2,000		31,279
JFE Holdings, Inc.		4,000		90,299
JSR Corp.		1,800		30,703
Kaneka Corp.		3,337		23,265
Kansai Paint Co., Ltd.		2,373		42,300
Kobe Steel Ltd.		25,000		45,440
Kuraray Co., Ltd.		2,500		33,807
Maruichi Steel Tube Ltd.		300		7,577
Mitsubishi Chemical Holdings Corp.		10,800		67,243
Mitsubishi Gas Chemical Co., Inc.		4,000		22,351
Mitsubishi Materials Corp.		9,049		32,576
Mitsui Chemicals, Inc.		6,000		19,836
Nippon Paint Holdings Co., Ltd.		1,400		46,897
Nippon Steel & Sumitomo Metal Corp.		62,000		161,275
Nissan Chemical Industries Ltd.		34,400		681,735
Nitto Denko Corp.		1,300		83,311
Oji Holdings Corp.		8,000		35,580
Shin-Etsu Chemical Co., Ltd.		3,324		203,192
Sumitomo Chemical Co., Ltd.		12,000		67,487
Sumitomo Metal Mining Co., Ltd.		4,000		58,629
Taiheiyo Cement Corp.		9,000		28,361
Taiyo Nippon Sanso Corp.		1,229		15,951
Teijin Ltd.		7,000		23,779
Toray Industries, Inc.		12,000		104,312
Toyo Seikan Group Holdings Ltd.		1,100		17,394
Yamato Kogyo Co., Ltd.		200		4,706
				8,195,400
Media 0.0%
Dentsu, Inc.		1,700		79,245
Hakuhodo DY Holdings, Inc.		1,600		17,123
Toho Co., Ltd.		800		19,884
				116,252
Pharmaceuticals, Biotechnology & Life Sciences 0.7%
Astellas Pharma, Inc.		398,500		6,204,922
Chugai Pharmaceutical Co., Ltd.		1,800		54,741
Daiichi Sankyo Co., Ltd.		5,100		88,580
Eisai Co., Ltd.		2,000		133,315
Hisamitsu Pharmaceutical Co., Inc.		500		21,547
Kaken Pharmaceutical Co., Ltd.		140,000		5,003,015
Kyowa Hakko Kirin Co., Ltd.		2,000		29,278
Mitsubishi Tanabe Pharma Corp.		1,800		30,627
Ono Pharmaceutical Co., Ltd.		700		75,865
Otsuka Holdings Co., Ltd.		3,200		101,007
Santen Pharmaceutical Co., Ltd.		3,000		39,711
Shionogi & Co., Ltd.		71,400		2,353,678
Sumitomo Dainippon Pharma Co., Ltd.		1,100		12,429
Taisho Pharmaceutical Holdings Co., Ltd.		300		21,082
Takeda Pharmaceutical Co., Ltd.		6,400		328,583
				14,498,380
Real Estate 0.5%
Aeon Mall Co., Ltd.		1,100		20,519
Daito Trust Construction Co., Ltd.		11,200		1,304,247
Daiwa House Industry Co., Ltd.		4,800		107,160
Hulic Co., Ltd.		1,800		19,267
Hulic Reit, Inc.		3,730		5,836,047
Japan Prime Realty Investment Corp.		5		17,940

See financial notes 43

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Japan Real Estate Investment Corp.		10		47,220
Japan Retail Fund Investment Corp.		19		40,448
Mitsubishi Estate Co., Ltd.		10,587		249,189
Mitsui Fudosan Co., Ltd.		8,000		237,154
Nippon Building Fund, Inc.		11		54,735
Nippon Prologis REIT, Inc.		13		28,168
Nomura Real Estate Holdings, Inc.		1,200		24,392
NTT Urban Development Corp.		700		7,288
Sumitomo Realty & Development Co., Ltd.		91,495		3,531,324
Tokyo Tatemono Co., Ltd.		3,460		25,087
Tokyu Fudosan Holdings Corp.		3,900		28,981
United Urban Investment Corp.		18		28,571
				11,607,737
Retailing 0.5%
ABC-Mart, Inc.		200		11,380
Don Quijote Holdings Co., Ltd.		500		38,147
Fast Retailing Co., Ltd.		430		169,368
Hikari Tsushin, Inc.		100		6,674
Isetan Mitsukoshi Holdings Ltd.		2,721		44,025
J. Front Retailing Co., Ltd.		2,400		39,993
Marui Group Co., Ltd.		1,600		17,467
Nitori Holdings Co., Ltd.		24,000		1,845,816
Rakuten, Inc.		6,400		111,811
Ryohin Keikaku Co., Ltd.		52,900		8,436,509
Sanrio Co., Ltd.		300		8,036
Shimamura Co., Ltd.		142		14,154
Takashimaya Co., Ltd.		2,000		18,665
USS Co., Ltd.		1,800		31,694
Yamada Denki Co., Ltd.		8,400		34,382
				10,828,121
Semiconductors & Semiconductor Equipment 0.0%
Advantest Corp.		1,100		12,968
Rohm Co., Ltd.		800		55,492
Tokyo Electron Ltd.		1,400		76,737
				145,197
Software & Services 0.5%
COLOPL, Inc.		400		8,191
Dena Co., Ltd.		160,600		3,208,150
Fujitsu Ltd.		15,000		99,425
GungHo Online Entertainment, Inc.		3,100		12,726
Itochu Techno-Solutions Corp.		200		4,555
Kakaku.com, Inc.		1,000		15,508
Konami Corp.		700		12,846
Mixi, Inc.		301		11,812
Nexon Co., Ltd.		1,600		20,408
Nintendo Co., Ltd.		900		151,110
Nomura Research Institute Ltd.		55,400		2,186,223
NS Solutions Corp.		93,500		3,137,072
NTT Data Corp.		1,000		44,744
Oracle Corp., Japan		200		9,130
Otsuka Corp.		300		13,818
SCSK Corp.		72,400		2,114,135
Trend Micro, Inc.		1,000		33,831
Yahoo Japan Corp.		11,400		46,572
				11,130,256
Technology Hardware & Equipment 1.1%
Brother Industries Ltd.		1,800		28,639
Canon, Inc.		9,160		326,597
Citizen Holdings Co., Ltd.		1,700		13,453
FUJIFILM Holdings Corp.		3,800		143,134
Hamamatsu Photonics K.K.		1,400		40,836
Hirose Electric Co., Ltd.		200		28,161
Hitachi High-Technologies Corp.		400		11,592
Hitachi Ltd.		39,000		266,093
Horiba Ltd.		87,300		3,278,224
Hoya Corp.		66,200		2,551,405
Ibiden Co., Ltd.		800		13,992
Japan Aviation Electronics Industry Ltd.		194,000		4,660,237
Japan Display, Inc. *		2,000		8,216
Keyence Corp.		6,500		3,470,016
Konica Minolta, Inc.		3,800		41,960
Kyocera Corp.		2,600		135,724
Murata Manufacturing Co., Ltd.		42,124		5,935,860
NEC Corp.		21,000		69,867
Nippon Electric Glass Co., Ltd.		3,000		17,060
Omron Corp.		66,200		3,039,774
Ricoh Co., Ltd.		5,700		58,908
Seiko Epson Corp.		2,000		34,949
Shimadzu Corp.		2,000		23,394
TDK Corp.		1,000		72,032
Yaskawa Electric Corp.		2,221		30,515
Yokogawa Electric Corp.		2,100		24,595
				24,325,233
Telecommunication Services 0.3%
KDDI Corp.		219,400		5,191,517
Nippon Telegraph & Telephone Corp.		3,000		202,575
NTT DOCOMO, Inc.		12,400		219,635
SoftBank Corp.		7,831		489,518
				6,103,245
Transportation 0.1%
ANA Holdings, Inc.		9,409		26,013
Central Japan Railway Co.		1,200		214,328
East Japan Railway Co.		2,738		242,004
Hankyu Hanshin Holdings, Inc.		9,000		54,325
Japan Airlines Co., Ltd.		1,000		33,342
Kamigumi Co., Ltd.		2,000		20,024
Keikyu Corp.		3,000		23,848
Keio Corp.		4,000		30,894
Keisei Electric Railway Co., Ltd.		2,266		26,860
Kintetsu Group Holdings Co., Ltd.		15,000		53,125
Mitsubishi Logistics Corp.		1,000		15,469
Mitsui O.S.K. Lines, Ltd.		9,000		31,776
Nagoya Railroad Co., Ltd.		8,000		31,600
Nippon Express Co., Ltd.		6,000		34,443
Nippon Yusen K.K.		12,000		37,722
Odakyu Electric Railway Co., Ltd.		5,000		50,313
Tobu Railway Co., Ltd.		8,000		38,137
Tokyu Corp.		9,000		59,837
West Japan Railway Co.		1,300		71,998
Yamato Holdings Co., Ltd.		2,900		64,905
				1,160,963
Utilities 0.0%
Chubu Electric Power Co., Inc.		5,131		68,009
Electric Power Development Co., Ltd.		1,400		46,997

44 See financial notes

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Hokuriku Electric Power Co.		1,200		17,740
Kyushu Electric Power Co., Inc. *		3,400		36,262
Osaka Gas Co., Ltd.		15,000		63,663
Shikoku Electric Power Co., Inc.		1,200		16,250
The Chugoku Electric Power Co., Inc.		2,200		32,299
The Kansai Electric Power Co., Inc. *		5,600		56,279
Toho Gas Co., Ltd.		4,330		26,219
Tohoku Electric Power Co., Inc.		3,600		45,287
Tokyo Electric Power Co., Inc. *		11,400		46,554
Tokyo Gas Co., Ltd.		19,000		109,645
				565,204
				330,288,413
Luxembourg 0.3%
Energy 0.0%
Subsea 7 S.A.		2,037		22,627
Materials 0.1%
APERAM S.A. *		77,230		2,944,295
ArcelorMittal		8,127		86,483
				3,030,778
Media 0.0%
RTL Group S.A.		308		28,875
SES S.A.		2,471		86,599
				115,474
Real Estate 0.2%
Grand City Properties S.A. *		217,140		4,115,787
Telecommunication Services 0.0%
Millicom International Cellular S.A. SDR		528		41,193
				7,325,859
Malaysia 0.1%
Software & Services 0.1%
My EG Services Berhad		4,004,600		2,836,036
Mexico 0.1%
Food, Beverage & Tobacco 0.0%
Arca Continental S.A.B. de C.V.		132,217		812,244
Real Estate 0.1%
Fibra Uno Administracion S.A. de C.V.		326,500		814,654
				1,626,898
Netherlands 2.5%
Automobiles & Components 0.0%
Fiat Chrysler Automobiles N.V. *		7,121		106,042
Banks 0.0%
ING Groep N.V. CVA *		31,358		481,080
Capital Goods 1.7%
Aalberts Industries N.V.		151,000		4,681,405
Airbus Group N.V.		4,780		331,264
CNH Industrial N.V.		1,608,080		14,128,872
Koninklijke Boskalis Westminster N.V.		69,317		3,601,752
Koninklijke Philips N.V.		446,681		12,794,839
TKH Group N.V.		39,490		1,465,333
				37,003,465
Commercial & Professional Supplies 0.3%
Randstad Holding N.V.		1,007		60,058
USG People N.V.		451,930		6,137,226
				6,197,284
Energy 0.0%
Koninklijke Vopak N.V.		550		28,868
Food & Staples Retailing 0.0%
Koninklijke Ahold N.V.		7,567		146,604
Food, Beverage & Tobacco 0.2%
Heineken Holding N.V.		37,206		2,593,607
Heineken N.V.		1,874		147,630
Unilever N.V. CVA		13,249		577,929
				3,319,166
Insurance 0.0%
Aegon N.V.		14,735		116,258
Delta Lloyd N.V.		1,520		28,784
NN Group N.V. *		1,234		35,974
				181,016
Materials 0.1%
Akzo Nobel N.V.		33,683		2,577,211
James Hardie Industries plc CDI		3,336		38,316
Koninklijke DSM N.V.		1,402		79,957
OCI N.V. *		694		20,690
				2,716,174
Media 0.0%
Altice S.A. *		693		73,440
Reed Elsevier N.V.		5,681		137,011
Wolters Kluwer N.V.		2,416		78,273
				288,724
Semiconductors & Semiconductor Equipment 0.2%
ASML Holding N.V.		2,837		305,298
NXP Semiconductors N.V. *		35,539		3,416,009
				3,721,307
Software & Services 0.0%
Gemalto N.V.		644		59,830
Telecommunication Services 0.0%
Koninklijke (Royal) KPN N.V.		26,048		96,580
Transportation 0.0%
TNT Express N.V.		4,402		37,576
				54,383,716
New Zealand 0.5%
Consumer Services 0.1%
SKYCITY Entertainment Group Ltd.		1,063,285		3,406,074
Health Care Equipment & Services 0.0%
Ryman Healthcare Ltd.		2,586		16,060
Materials 0.0%
Fletcher Building Ltd.		5,143		32,556

See financial notes 45

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Telecommunication Services 0.0%
Spark New Zealand Ltd.		13,651		30,889
Transportation 0.4%
Auckland International Airport Ltd.		2,314,461		8,121,908
Utilities 0.0%
Contact Energy Ltd.		2,424		10,497
Meridian Energy Ltd. *(a)		10,167		15,598
Mighty River Power Ltd.		5,669		13,024
				39,119
				11,646,606
Norway 0.3%
Banks 0.0%
DNB A.S.A.		7,948		141,198
Energy 0.1%
Hoegh LNG Holdings Ltd.		142,480		1,920,295
Seadrill Ltd.		3,053		38,912
Statoil A.S.A.		9,077		192,436
				2,151,643
Food, Beverage & Tobacco 0.0%
Orkla A.S.A.		6,519		51,191
Insurance 0.0%
Gjensidige Forsikring A.S.A.		40,337		701,727
Materials 0.0%
Norsk Hydro A.S.A.		10,761		50,962
Yara International A.S.A.		1,449		74,243
				125,205
Media 0.2%
Schibsted A.S.A.		50,720		3,155,732
Telecommunication Services 0.0%
Telenor A.S.A.		6,167		139,283
				6,465,979
Peru 0.1%
Banks 0.1%
Credicorp Ltd.		11,584		1,767,139
Philippines 0.3%
Materials 0.2%
D&L Industries, Inc.		7,273,500		3,258,861
Retailing 0.1%
SSI Group, Inc. *		11,538,300		2,691,029
				5,949,890
Portugal 0.0%
Banks 0.0%
Banco Comercial Portugues S.A., Class R *		391,289		38,965
Banco Espirito Santo S.A. - Reg’d *(a)		42,176		—
				38,965
Energy 0.0%
Galp Energia, SGPS, S.A.		3,081		42,085
Food & Staples Retailing 0.0%
Jeronimo Martins, SGPS, S.A.		2,077		30,298
Utilities 0.0%
EDP - Energias de Portugal S.A.		18,835		75,310
				186,658
Republic of Korea 1.7%
Consumer Durables & Apparel 0.3%
Hanssem Co., Ltd.		35,670		6,582,205
Household & Personal Products 0.2%
Amorepacific Corp. (a)		235		851,437
Cosmax, Inc.		29,960		4,044,778
				4,896,215
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Naturalendo Tech Co., Ltd. *(f)		70,409		2,239,689
Semiconductors & Semiconductor Equipment 0.1%
SK Hynix, Inc.		44,720		1,913,348
Technology Hardware & Equipment 1.0%
Samsung Electronics Co., Ltd.		15,856		20,800,753
				36,432,210
Singapore 2.6%
Banks 0.0%
DBS Group Holdings Ltd.		14,316		227,487
Oversea-Chinese Banking Corp., Ltd.		23,888		192,367
United Overseas Bank Ltd.		10,900		201,268
				621,122
Capital Goods 0.1%
Keppel Corp., Ltd.		12,000		78,819
Sarine Technologies Ltd.		1,946,500		3,008,237
Sembcorp Industries Ltd.		8,000		27,263
Sembcorp Marine Ltd.		7,000		15,657
Singapore Technologies Engineering Ltd.		13,000		35,489
Yangzijiang Shipbuilding Holdings Ltd.		12,000		13,252
				3,178,717
Consumer Services 0.0%
Genting Singapore plc		49,000		37,858
Diversified Financials 0.0%
Singapore Exchange Ltd.		7,000		44,995
Energy 0.1%
Ezra Holdings Ltd. *		3,559,120		1,179,784
Food, Beverage & Tobacco 0.0%
Golden Agri-Resources Ltd.		70,000		22,145
Wilmar International Ltd.		16,000		39,298
				61,443
Media 0.0%
Singapore Press Holdings Ltd.		13,000		41,139
Real Estate 1.1%
Ascendas Real Estate Investment Trust		5,103,300		9,510,381
CapitaCommercial Trust		15,000		19,179
CapitaLand Ltd.		21,000		58,440

46 See financial notes

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
CapitaMall Trust		8,032,200		13,262,278
City Developments Ltd.		3,427		27,573
Global Logistic Properties Ltd.		25,000		51,851
Suntec Real Estate Investment Trust		19,224		25,663
UOL Group Ltd.		3,000		18,039
				22,973,404
Retailing 0.0%
Jardine Cycle & Carriage Ltd.		1,000		30,471
Telecommunication Services 0.3%
Singapore Telecommunications Ltd.		65,000		216,375
StarHub Ltd.		1,977,800		6,315,585
				6,531,960
Transportation 0.8%
ComfortDelGro Corp., Ltd.		15,000		34,750
Hutchison Port Holdings Trust, Class U		46,000		30,993
SATS Ltd.		3,135,700		7,559,615
SIA Engineering Co., Ltd. (f)		3,381,400		10,691,482
Singapore Airlines Ltd.		4,331		39,907
				18,356,747
Utilities 0.2%
Hyflux Ltd. (f)		4,406,000		3,207,087
				56,264,727
South Africa 0.4%
Capital Goods 0.0%
The Bidvest Group Ltd.		42,938		1,163,794
Consumer Durables & Apparel 0.1%
Steinhoff International Holdings Ltd.		189,533		1,202,639
Diversified Financials 0.1%
FirstRand Ltd.		513,836		2,454,642
Insurance 0.0%
Sanlam Ltd.		104,804		677,832
Media 0.1%
Naspers Ltd., N Shares		10,701		1,678,835
Telecommunication Services 0.1%
MTN Group Ltd.		100,120		2,010,301
				9,188,043
Spain 1.9%
Banks 0.3%
Banco Bilbao Vizcaya Argentaria S.A.		408,646		4,106,110
Banco de Sabadell S.A. *		35,298		94,403
Banco Popular Espanol S.A.		14,570		75,808
Banco Santander S.A.		113,972		861,693
Bankia S.A. *		36,876		51,498
Bankinter S.A.		273,181		2,066,007
CaixaBank S.A.		18,213		91,348
				7,346,867
Capital Goods 0.0%
ACS, Actividades de Construccion y Servicios S.A.		1,433		50,493
Ferrovial S.A.		3,369		76,402
Zardoya Otis S.A.		1,334		17,198
				144,093
Commercial & Professional Supplies 0.2%
Prosegur Cia de Seguridad S.A. - Reg’d		598,659		3,451,002
Consumer Services 0.4%
Melia Hotels International S.A.		588,230		7,361,206
Energy 0.2%
Repsol S.A.		197,364		4,068,451
Food & Staples Retailing 0.0%
Distribuidora Internacional de Alimentacion S.A.		94,853		759,665
Food, Beverage & Tobacco 0.0%
Viscofan S.A.		10,657		677,353
Insurance 0.1%
Mapfre S.A.		648,397		2,409,506
Media 0.3%
Mediaset Espana Comunicacion S.A. *		502,560		6,812,026
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Grifols S.A.		1,192		50,578
Retailing 0.1%
Inditex S.A.		45,227		1,451,292
Software & Services 0.2%
Amadeus IT Holding S.A., A Shares		92,140		4,199,919
Telecommunication Services 0.0%
Telefonica S.A.		36,405		554,100
Transportation 0.1%
Abertis Infraestructuras S.A.		81,322		1,498,521
Aena S.A. *		437		41,173
International Consolidated Airlines Group S.A. *		6,682		55,736
				1,595,430
Utilities 0.0%
Enagas S.A.		1,623		49,985
Endesa S.A.		2,314		45,848
Gas Natural SDG S.A.		2,849		70,051
Iberdrola S.A.		42,367		283,574
Red Electrica Corp. S.A.		880		73,854
				523,312
				41,404,800
Sweden 3.3%
Banks 0.2%
Nordea Bank AB		24,704		313,868
Skandinaviska Enskilda Banken AB, A Shares		12,354		156,114
Svenska Handelsbanken AB, A Shares		4,060		187,405
Swedbank AB, A Shares		133,929		3,114,207
				3,771,594
Capital Goods 1.7%
Alfa Laval AB		2,516		46,963
Assa Abloy AB, B Shares		42,646		2,474,056

See financial notes 47

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Atlas Copco AB, A Shares		130,041		4,058,968
Atlas Copco AB, B Shares		107,274		2,986,987
Eltel AB *		246,824		2,650,884
Haldex AB		357,040		5,335,380
Indutrade AB		65,120		3,181,236
Inwido AB *		648,345		7,138,264
Sandvik AB		8,672		109,606
Skanska AB, B Shares		3,040		67,650
SKF AB, B Shares		341,370		8,337,977
Volvo AB, B Shares		12,473		172,317
				36,560,288
Commercial & Professional Supplies 0.3%
AF AB, B Shares		383,673		5,217,636
Intrum Justitia AB		22,370		704,481
Securitas AB, B Shares		2,569		38,418
				5,960,535
Consumer Durables & Apparel 0.1%
Electrolux AB, B Shares		1,924		57,609
Husqvarna AB, B Shares		4,048		29,942
Nobia AB		294,390		3,184,705
				3,272,256
Diversified Financials 0.3%
Avanza Bank Holding AB		88,930		3,831,005
Hoist Finance AB *		361,190		2,828,112
Industrivarden AB, C Shares		1,032		21,503
Investment AB Kinnevik, B Shares		1,883		64,894
Investor AB, B Shares		3,704		150,929
				6,896,443
Energy 0.0%
Lundin Petroleum AB *		1,568		25,381
Food & Staples Retailing 0.0%
ICA Gruppen AB		627		23,302
Food, Beverage & Tobacco 0.2%
Cloetta AB, B Shares *		900,440		2,774,127
Swedish Match AB		52,643		1,620,566
				4,394,693
Health Care Equipment & Services 0.0%
Elekta AB, B Shares		2,715		25,413
Getinge AB, B Shares		1,628		39,568
				64,981
Household & Personal Products 0.0%
Svenska Cellulosa AB, S.C.A., B Shares		4,775		120,783
Materials 0.3%
Boliden AB		2,042		44,364
Hexpol AB		53,794		5,764,637
				5,809,001
Retailing 0.1%
Hennes & Mauritz AB, B Shares		71,222		2,831,554
Technology Hardware & Equipment 0.1%
Hexagon AB, B Shares		36,032		1,334,632
Telefonaktiebolaget LM Ericsson, B Shares		24,752		270,707
				1,605,339
Telecommunication Services 0.0%
Tele2 AB, B Shares		2,620		34,945
TeliaSonera AB		22,079		137,268
				172,213
				71,508,363
Switzerland 7.3%
Capital Goods 0.9%
ABB Ltd. - Reg’d *		17,885		391,904
Belimo Holding AG - Reg’d		901		2,187,432
Burckhardt Compression Holding AG		19,738		8,594,464
Daetwyler Holding AG		5,104		724,440
Geberit AG - Reg’d		6,016		2,130,706
Schindler Holding AG		36,476		6,170,567
Schindler Holding AG - Reg’d		169		28,153
Sulzer AG - Reg’d		240		26,781
				20,254,447
Commercial & Professional Supplies 0.3%
Adecco S.A. - Reg’d *		78,485		6,396,266
SGS S.A. - Reg’d		45		87,192
				6,483,458
Consumer Durables & Apparel 0.9%
Cie Financiere Richemont S.A. - Reg’d		214,945		19,158,673
The Swatch Group AG - Bearer Shares		251		112,211
The Swatch Group AG - Reg’d		396		35,088
				19,305,972
Diversified Financials 1.9%
Credit Suisse Group AG - Reg’d *		1,054,168		27,900,726
Julius Baer Group Ltd. *		1,820		95,260
Leonteq AG *(f)		59,380		10,177,646
Pargesa Holding S.A.		238		17,335
Partners Group Holding AG		10,499		3,290,763
UBS Group AG *		29,325		585,835
				42,067,565
Energy 0.0%
Transocean Ltd.		2,944		52,738
Food, Beverage & Tobacco 0.7%
Aryzta AG *		698		47,099
Barry Callebaut AG - Reg’d *		18		21,836
Chocoladefabriken Lindt & Sprungli AG		8		43,716
Chocoladefabriken Lindt & Sprungli AG - Reg’d		1		64,324
Coca-Cola HBC AG CDI *		1,598		33,713
Nestle S.A. - Reg’d		195,603		15,175,705
				15,386,393
Health Care Equipment & Services 0.3%
Sonova Holding AG - Reg’d		430		59,407
Straumann Holding AG - Reg’d		22,650		6,408,486
				6,467,893
Insurance 0.0%
Baloise Holding AG - Reg’d		386		50,233
Swiss Life Holding AG - Reg’d *		257		60,986
Swiss Re AG		2,864		254,058

48 See financial notes

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Zurich Insurance Group AG *		1,214		374,705
				739,982
Materials 1.0%
Clariant AG - Reg’d *		110,669		2,429,700
EMS-Chemie Holding AG - Reg’d		67		28,119
Givaudan S.A. - Reg’d *		75		140,338
Glencore plc *		1,596,996		7,586,637
Holcim Ltd. - Reg’d *		147,362		11,837,660
Sika AG		17		58,350
Syngenta AG - Reg’d		757		253,315
				22,334,119
Pharmaceuticals, Biotechnology & Life Sciences 0.8%
Actelion Ltd. - Reg’d *		24,659		3,244,650
Lonza Group AG - Reg’d *		11,715		1,656,384
Novartis AG - Reg’d		97,023		9,903,343
Roche Holding AG		5,687		1,627,364
				16,431,741
Real Estate 0.0%
Swiss Prime Site AG - Reg’d *		428		37,526
Telecommunication Services 0.0%
Swisscom AG - Reg’d		190		112,956
Transportation 0.5%
Kuehne & Nagel International AG - Reg’d		68,232		10,233,734
				159,908,524
Taiwan 1.4%
Banks 0.0%
CTBC Financial Holding Co., Ltd.		1,286,000		1,000,988
Consumer Durables & Apparel 0.3%
Eclat Textile Co., Ltd.		526,000		7,042,255
Diversified Financials 0.1%
Fubon Financial Holding Co., Ltd.		1,199,000		2,578,516
Retailing 0.1%
Poya International Co., Ltd.		272,000		2,905,197
Semiconductors & Semiconductor Equipment 0.2%
MediaTek, Inc.		101,000		1,298,273
Siliconware Precision Industries Co., Ltd.		405,000		665,336
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		80,221		1,960,601
				3,924,210
Software & Services 0.4%
PChome Online, Inc.		480,000		8,119,377
Technology Hardware & Equipment 0.3%
Largan Precision Co., Ltd.		19,000		1,903,914
TPK Holding Co., Ltd.		645,000		4,006,698
				5,910,612
				31,481,155
Thailand 0.1%
Banks 0.0%
Kasikornbank PCL		163,500		1,038,000
Telecommunication Services 0.1%
Advanced Info Service PCL - Reg’d		153,800		1,119,733
				2,157,733
United Arab Emirates 0.0%
Real Estate 0.0%
Emaar Properties PJSC		399,537		885,967
United Kingdom 17.4%
Automobiles & Components 0.0%
GKN plc		13,131		70,429
Banks 0.8%
Barclays plc		133,372		521,811
HSBC Holdings plc (e)		64,137		638,410
HSBC Holdings plc (e)		155,100		1,549,371
Lloyds Banking Group plc		12,735,594		15,082,467
Royal Bank of Scotland Group plc *		20,417		105,781
Standard Chartered plc		20,071		328,607
				18,226,447
Capital Goods 4.2%
Ashtead Group plc		133,472		2,288,720
BAE Systems plc		25,717		199,235
Bodycote plc		895,752		9,433,726
Brammer plc		729,916		4,254,798
Bunzl plc		78,591		2,209,763
Cobham plc		9,260		42,007
Diploma plc (f)		627,931		7,662,797
Fenner plc		715,334		2,298,833
Grafton Group plc		372,360		4,699,056
HellermannTyton Group plc		1,242,722		6,561,174
IMI plc		2,207		42,292
Interserve plc		859,233		7,609,982
Meggitt plc		656,487		5,305,316
Melrose Industries plc		7,414		30,086
Rolls-Royce Holdings plc *		15,293		243,815
Rotork plc		368,926		13,312,839
Smiths Group plc		391,555		6,854,728
Spirax-Sarco Engineering plc		228,807		11,843,743
The Weir Group plc		1,707		49,077
Travis Perkins plc		2,008		63,825
Ultra Electronics Holdings plc		170,287		4,528,445
Wolseley plc		53,307		3,152,809
				92,687,066
Commercial & Professional Supplies 0.4%
Aggreko plc		2,083		52,544
Babcock International Group plc		76,970		1,187,333
Capita plc		62,872		1,100,460
G4S plc		283,619		1,272,177
Hays plc		2,221,490		5,221,285
Intertek Group plc		1,291		51,595
				8,885,394
Consumer Durables & Apparel 0.6%
Bellway plc		278,400		8,463,971
Burberry Group plc		3,608		96,186
Persimmon plc *		2,482		64,443
Redrow plc		681,740		3,861,480

See financial notes 49

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Taylor Wimpey plc		294,231		747,106
				13,233,186
Consumer Services 1.1%
Carnival plc		1,471		66,926
Compass Group plc		172,184		3,043,820
Domino’s Pizza Group plc		362,540		4,393,557
Greene King plc		618,419		7,862,504
InterContinental Hotels Group plc		52,373		2,239,757
Merlin Entertainments plc		115,633		772,604
The Restaurant Group plc		262,200		2,724,904
Whitbread plc		46,493		3,733,355
William Hill plc		6,557		36,228
				24,873,655
Diversified Financials 0.6%
3i Group plc		7,905		61,238
Aberdeen Asset Management plc		7,356		53,415
Hargreaves Lansdown plc		1,890		35,503
ICAP plc		4,520		38,428
IG Group Holdings plc		268,380		3,026,021
Investec plc		4,456		42,550
London Stock Exchange Group plc		2,533		98,598
Provident Financial plc		28,274		1,304,178
Schroders plc		171,492		8,505,713
Schroders plc, Non Voting Shares		1,100		41,209
				13,206,853
Energy 0.4%
Amec Foster Wheeler plc		3,151		44,118
BG Group plc		27,736		502,397
BP plc		147,745		1,065,595
Hunting plc		336,359		3,023,000
Petrofac Ltd.		2,110		28,163
Royal Dutch Shell plc, A Shares (e)		102,107		3,231,923
Royal Dutch Shell plc, B Shares (e)		19,848		635,450
Tullow Oil plc		7,283		46,240
				8,576,886
Food & Staples Retailing 0.0%
J. Sainsbury plc		9,905		41,186
Tesco plc		66,021		222,535
WM Morrison Supermarkets plc		17,092		48,734
				312,455
Food, Beverage & Tobacco 1.1%
Associated British Foods plc		2,897		126,478
British American Tobacco plc		15,113		830,362
Diageo plc		585,729		16,261,219
Imperial Tobacco Group plc		7,784		380,097
SABMiller plc		7,843		415,152
Tate & Lyle plc		3,477		31,836
Unilever plc		122,595		5,373,884
				23,419,028
Health Care Equipment & Services 0.0%
Smith & Nephew plc		7,261		123,578
Household & Personal Products 0.3%
Reckitt Benckiser Group plc		82,780		7,367,782
Insurance 1.0%
Admiral Group plc		1,574		37,533
Aviva plc		32,508		261,542
Direct Line Insurance Group plc		12,200		59,561
Hiscox Ltd.		57,769		727,854
Legal & General Group plc		48,131		191,324
Old Mutual plc		39,839		142,907
Prudential plc		361,313		8,995,797
RSA Insurance Group plc		8,104		53,014
Standard Life plc		15,907		113,707
Willis Group Holdings plc		255,000		12,400,650
				22,983,889
Materials 1.6%
Anglo American plc		11,359		192,450
Antofagasta plc		3,147		37,667
BHP Billiton plc		17,178		412,898
Croda International plc		377,094		16,364,632
Elementis Plc		495,656		2,306,562
Essentra plc		365,240		5,361,467
Fresnillo plc		1,755		19,465
Johnson Matthey plc		1,667		85,232
Randgold Resources Ltd.		716		54,488
Rexam plc		5,726		50,823
Rio Tinto plc		10,349		463,129
Victrex plc		335,107		10,142,556
				35,491,369
Media 1.1%
ITV plc		1,413,789		5,489,054
Pearson plc		6,661		134,611
Reed Elsevier plc		149,304		2,471,031
Rightmove plc		112,460		5,444,120
Sky plc		8,397		138,449
WPP plc		426,610		9,949,172
				23,626,437
Pharmaceuticals, Biotechnology & Life Sciences 1.0%
AstraZeneca plc		48,319		3,315,968
BTG plc *		357,590		3,945,671
GlaxoSmithKline plc		346,199		7,996,043
Hikma Pharmaceuticals plc		22,917		716,664
Shire plc		73,379		5,963,037
				21,937,383
Real Estate 0.1%
Derwent London plc		14,557		766,215
Hammerson plc		6,276		64,301
Intu Properties plc		7,222		37,887
Land Securities Group plc		6,428		123,010
Segro plc		5,536		36,368
The British Land Co., plc		7,819		99,585
				1,127,366
Retailing 0.6%
ASOS plc *		175,420		10,077,380
Dixons Carphone plc		7,829		50,809
Kingfisher plc		19,274		103,550
Marks & Spencer Group plc		13,277		112,436
Next plc		24,094		2,708,898
Sports Direct International plc *		2,219		20,975
				13,074,048
Semiconductors & Semiconductor Equipment 0.1%
ARM Holdings plc		64,289		1,092,359

50 See financial notes

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Software & Services 0.3%
Just Eat plc *		796,200		5,583,323
The Sage Group plc		8,918		66,307
				5,649,630
Technology Hardware & Equipment 1.5%
Domino Printing Sciences plc		713,610		10,022,828
Halma plc		689,272		7,506,772
Laird plc		992,875		5,460,163
Oxford Instruments plc		268,761		3,826,111
Spectris plc		209,758		6,893,825
				33,709,699
Telecommunication Services 0.3%
BT Group plc		799,313		5,574,875
Inmarsat plc		3,182		48,998
Vodafone Group plc		215,054		757,680
				6,381,553
Transportation 0.2%
easyJet plc		138,861		3,839,597
Royal Mail plc		5,187		37,059
				3,876,656
Utilities 0.1%
Centrica plc		40,996		160,068
National Grid plc		30,375		408,645
Severn Trent plc		1,915		62,360
SSE plc		82,880		1,963,734
United Utilities Group plc		5,546		82,504
				2,677,311
				382,610,459
United States 0.0%
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
ICON plc *		16,998		1,093,651
Total Common Stock
(Cost $1,762,902,580)				2,103,988,678
Preferred Stock 0.3% of net assets
Brazil 0.1%
Banks 0.1%
Itau Unibanco Holding S.A.		114,750		1,467,438
Germany 0.2%
Automobiles & Components 0.0%
Bayerische Motoren Werke AG		404		36,917
Porsche Automobil Holding SE		1,245		118,130
Volkswagen AG		1,322		340,343
				495,390
Capital Goods 0.2%
Jungheinrich AG		57,080		4,034,494
Household & Personal Products 0.0%
Henkel AG & Co. KGaA		1,449		168,312
Materials 0.0%
Fuchs Petrolub SE		700		29,486
				4,727,682
Italy 0.0%
Banks 0.0%
Intesa Sanpaolo S.p.A. - RSP		6,481		19,726
United Kingdom 0.0%
Capital Goods 0.0%
Rolls-Royce Holdings plc, C Shares *(a)		2,156,313		3,310
Total Preferred Stock
(Cost $5,716,195)				6,218,156
Other Investment Companies 3.4% of net assets
Equity Funds 0.9%
Market Vectors Brazil Small-Cap ETF		81,470		1,459,128
Market Vectors Junior Gold Miners ETF		109,630		2,734,172
Vanguard FTSE Emerging Markets ETF		335,000		14,696,450
				18,889,750
Money Market Fund 2.5%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b)		55,277,001		55,277,001
Total Other Investment Companies
(Cost $75,274,469)				74,166,751
Rights 0.0% of net assets
Canada 0.0%
Software & Services 0.0%
Constellation Software, Inc. *		1,983		592
Italy 0.0%
Insurance 0.0%
UnipolSai S.p.A., Class A - RSP *(a)(f)		7,022		—
UnipolSai S.p.A., Class B - RSP *(a)(f)		7,022		—
				—
Spain 0.0%
Banks 0.0%
Banco Popular Espanol S.A. *		14,570		278
Banco Santander S.A. *(a)		113,972		18,795
				19,073
Total Rights
(Cost $19,061)				19,665

See financial notes 51

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investments 0.0% of net assets
U.S. Treasury Obligations 0.0%
U.S. Treasury Bills
0.09%, 06/04/15 (c)(d)		40,000		40,000
0.04%, 09/17/15 (c)(d)		5,000		5,000
Total Short-Term Investments
(Cost $44,996)				45,000
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $1,859,518,534 and the unrealized appreciation and depreciation were $375,655,969 and ($50,736,253), respectively, with a net unrealized appreciation of $324,919,716.

At 04/30/15, the values of certain foreign securities held by the fund aggregating $1,813,665,525 were adjusted from their closing market values in accordance with international fair valuation procedures approved by the fund’s Board of Trustees. (See financial note 2(a) for additional information)

*	Non-income producing security.
(a)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(b)	The rate shown is the 7-day yield.
(c)	All or a portion of this security is held as collateral for open futures contracts.
(d)	The rate shown is the purchase yield.
(e)	Securities are traded on separate exchanges for the same entity.
(f)	Illiquid security. At the period end, the value of these amounted to $62,090,398 or 2.8% of net assets.

ADR —	American Depositary Receipt
CDI —	CHESS Depositary Interest
CVA —	Dutch Certificate
ETF —	Exchange Traded Fund
Reg’d —	Registered
REIT —	Real Estate Investment Trust
RSP —	Risparmio (Convertible Savings Shares)
SDR —	Swedish Depositary Receipt

AUD —	Australian dollar
CHF —	Swiss franc
NZD —	New Zealand dollar
USD —	U.S. dollar

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Appreciation
	Contracts		($)		($)
Futures Contracts
MSCI EAFE, e-mini, Long, expires 06/19/15		212		20,078,520		575,097

Amount of

Amount of

Unrealized

Currency

Currency

Currency

Currency

Appreciation

Expiration

to be

to be

to be

to be

(Depreciation)

Date

Counterparty

Received

Received

Delivered

Delivered

($)

Forward Foreign Currency Exchange Contracts

06/17/2015

State Street Bank & Trust Co.

AUD

1,258,000

USD

993,114

(64,650

)

06/17/2015

State Street Bank & Trust Co.

AUD

2,096,000

USD

1,654,664

(55,253

)

06/17/2015

State Street Bank & Trust Co.

USD

6,366,826

AUD

8,065,000

842,155

09/16/2015

State Street Bank & Trust Co.

USD

22,659,552

CHF

21,026,000

(861,915

)

09/16/2015

State Street Bank & Trust Co.

USD

6,531,891

CHF

6,061,000

403,368

07/31/2015

State Street Bank & Trust Co.

USD

6,697,621

NZD

8,849,500

25,654

Net Unrealized Appreciation on Forward Foreign Currency Exchange Contracts

289,359

52 See financial notes

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

Assets Valuation Input

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Common Stock1		$—		$543,129,594		$—		$543,129,594
Brazil1		7,962,485		—		—		7,962,485
Canada1		104,091,832		—		—		104,091,832
China1		—		58,601,588		—		58,601,588
Pharmaceuticals, Biotechnology & Life Sciences		857,702		2,756,080		—		3,613,782
Retailing		1,896,816		—		—		1,896,816
Software & Services		5,579,485		4,274,310		—		9,853,795
Denmark1		—		34,553,757		—		34,553,757
Health Care Equipment & Services		16,700		1,715,167		—		1,731,867
France1		—		109,525,768		—		109,525,768
Capital Goods		5,692,796		7,643,815		—		13,336,611
Commercial & Professional Supplies		9,052,446		101,964		—		9,154,410
Energy		9,587,454		4,001,185		—		13,588,639
Health Care Equipment & Services		6,099,715		3,255,786		—		9,355,501
Media		44,692		3,471,428		—		3,516,120
Pharmaceuticals, Biotechnology & Life Sciences		6,527,066		7,733,391		—		14,260,457
Software & Services		4,023,278		4,087,378		—		8,110,656
Telecommunication Services		49,364		248,404		—		297,768
Germany1		—		163,064,691		—		163,064,691
Media		6,077,268		9,263,432		—		15,340,700
Hong Kong1		—		29,298,527		—		29,298,527
Capital Goods		250,485		4,305,460		—		4,555,945
Consumer Services		6,767,188		242,672		—		7,009,860
Diversified Financials		23,286		2,527,371		—		2,550,657
Telecommunication Services		3,810,540		46,876		—		3,857,416
India1		—		25,333,245		—		25,333,245
Automobiles & Components		—		5,762,213		84,670		5,846,883
Ireland1		—		14,853,878		—		14,853,878
Banks		1,673,967		85,195		—		1,759,162
Food, Beverage & Tobacco		6,683,236		151,947		—		6,835,183
Israel1		—		5,137,755		—		5,137,755
Capital Goods		4,414,565		—		—		4,414,565
Pharmaceuticals, Biotechnology & Life Sciences		4,808,767		422,555		—		5,231,322
Semiconductors & Semiconductor Equipment		4,082,287		—		—		4,082,287
Software & Services		5,916,896		32,279		—		5,949,175
Mexico1		1,626,898		—		—		1,626,898

See financial notes 53

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Netherlands1		$—		$50,192,669		$—		$50,192,669
Insurance		28,784		152,232		—		181,016
Media		73,440		215,284		—		288,724
Semiconductors & Semiconductor Equipment		3,416,009		305,298		—		3,721,307
New Zealand1		—		11,607,487		—		11,607,487
Utilities		13,024		10,497		15,598		39,119
Peru1		1,767,139		—		—		1,767,139
Republic of Korea1		—		29,296,306		—		29,296,306
Household & Personal Products		—		4,044,778		851,437		4,896,215
Pharmaceuticals, Biotechnology & Life Sciences		2,239,689		—		—		2,239,689
Singapore1		—		37,907,980		—		37,907,980
Transportation		7,559,615		10,797,132		—		18,356,747
Spain1		—		32,448,164		—		32,448,164
Consumer Services		7,361,206		—		—		7,361,206
Transportation		41,173		1,554,257		—		1,595,430
Sweden1		—		24,691,093		—		24,691,093
Capital Goods		9,789,148		26,771,140		—		36,560,288
Consumer Durables & Apparel		3,184,705		87,551		—		3,272,256
Diversified Financials		2,828,112		4,068,331		—		6,896,443
Food & Staples Retailing		23,302		—		—		23,302
Health Care Equipment & Services		25,413		39,568		—		64,981
Switzerland1		—		139,654,077		—		139,654,077
Capital Goods		2,187,432		18,067,015		—		20,254,447
Taiwan1		—		27,556,945		—		27,556,945
Semiconductors & Semiconductor Equipment		1,960,601		1,963,609		—		3,924,210
Thailand1		—		1,038,000		—		1,038,000
Telecommunication Services		1,119,733		—		—		1,119,733
United Kingdom1		—		176,360,236		—		176,360,236
Capital Goods		11,917,595		80,769,471		—		92,687,066
Consumer Services		4,393,557		20,480,098		—		24,873,655
Energy		3,023,000		5,553,886		—		8,576,886
Food, Beverage & Tobacco		31,836		23,387,192		—		23,419,028
Insurance		12,400,650		10,583,239		—		22,983,889
Technology Hardware & Equipment		10,022,828		23,686,871		—		33,709,699
United States1		1,093,651		—		—		1,093,651
Preferred Stock1		—		4,747,408		—		4,747,408
Brazil1		1,467,438		—		—		1,467,438
United Kingdom1		—		—		3,310		3,310
Other Investment Companies1		74,166,751		—		—		74,166,751
Rights
Canada1		592		—		—		592

54 See financial notes

 Laudus International MarketMasters Fund

Portfolio Holdings (Unaudited) continued

	Quoted Prices in					Significant
	Active Markets for		Other Significant			Unobservable
	Identical Assets		Observable Inputs			Inputs
Description	(Level 1)		(Level 2)			(Level 3)		Total
Spain
Banks		$278		$—			$18,795		$19,073
Short-Term Investments1		—		45,000			—		45,000
Total		$369,753,915		$1,813,710,525			$973,810		$2,184,438,250
Other Financial Instruments
Futures Contracts2		$575,097		$—			$—		$575,097
Forward Foreign Currency Exchange Contracts2		—		1,271,177			—		1,271,177
Liabilities Valuation Input
Other Financial Instruments
Forward Foreign Currency Exchange Contracts2		$—		($981,818	)		$—		($981,818	)

1	As categorized in Portfolio Holdings.
2	Futures contracts and forward foreign currency exchange contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Balance				Change in											Balance
	as of		Realized		Unrealized							Gross		Gross		as of
	October 31,		Gains		Appreciation		Gross		Gross			Transfers		Transfers		April 30,
Investments in Securities	2014		(Losses)		(Depreciation)		Purchases		Sales			in		out		2015
Common Stock
India		$—		$—		$9,470		$75,200		$—			$—		$—		$84,670
New Zealand		—		—		2,169		13,429		—			—		—		15,598
Republic of Korea		—		—		155,243		696,194		—			—		—		851,437
Preferred Stock
United Kingdom		3,056		—		77		3,243		(3,066	)		—		—		3,310
Rights
Spain		—		—		588		18,207		—			—		—		18,795
Total		$3,056		$—		$167,547		$806,273		($3,066	)		$—		$—		$973,810

All net realized and change in unrealized gains (losses) in the table above are reflected on the accompanying Statement of Operations. The change in net unrealized appreciation (depreciation) for Level 3 investments held by the fund at April 30, 2015 was $167,537.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were security transfers in the amount of $18,241,043 and $37,103,101 from Level 1 to Level 2 and from Level 2 to Level 1, respectively, for the period ended April 30, 2015. The transfers between Level 1 and Level 2 were primarily due to the use of international fair valuation by the fund. There were no transfers in or out of Level 3 during the period.

See financial notes 55

 Laudus International MarketMasters Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments, at value (cost $1,843,957,301)		$2,184,438,250
Foreign currency, at value (cost $2,000,511)		2,007,484
Deposit with broker for futures contracts		1,914,000
Receivables:
Investments sold		8,636,520
Dividends		6,550,519
Fund shares sold		5,178,703
Foreign tax reclaims		1,271,307
Unrealized appreciation on forward foreign currency exchange contracts		1,271,177
Prepaid expenses	+	125,323
Total assets		2,211,393,283
Liabilities
Payables:
Investments bought		11,818,467
Investment adviser and administrator fees		463,515
Shareholder service fees		460,632
Due to custodian		1,091,174
Fund shares redeemed		797,549
Foreign capital gains tax		330,160
Variation margin on futures contracts		243,578
Unrealized depreciation on forward foreign currency exchange contracts	+	981,818
Total liabilities		16,186,893
Net Assets
Total assets		2,211,393,283
Total liabilities	−	16,186,893
Net assets		$2,195,206,390
Net Assets by Source
Capital received from investors		1,857,110,138
Distributions in excess of net investment income		(7,680,819	)
Net realized capital gains		4,692,710
Net unrealized capital appreciation		341,084,361
Net Asset Value (NAV) by Shares Class

			Shares
Share Class	Net Assets	÷	Outstanding	=	NAV
Investor Shares	$626,013,483		26,055,733			$24.03
Select Shares	$1,569,192,907		65,367,199			$24.01

56 See financial notes

 Laudus International MarketMasters Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends (net of foreign withholding taxes of $1,839,760)		$20,973,613
Interest	+	225
Total investment income		20,973,838
Expenses
Investment adviser and administrator fees		13,597,937
Shareholder service fees:
Investor Shares		712,225
Select Shares		1,161,980
Custodian fees		648,815
Portfolio accounting fees		100,304
Transfer agent fees		83,226
Shareholder reports		62,702
Professional fees		35,691
Registration fees		28,002
Independent trustees’ fees		8,095
Interest expense		1,006
Other expenses	+	63,221
Total expenses		16,503,204
Expense reduction by CSIM and its affiliates	−	2,607,397
Net expenses	−	13,895,807
Net investment income		7,078,031
Realized and Unrealized Gains (Losses)
Net realized gains on investments (net of foreign capital gain tax paid of $579,074)		19,997,496
Net realized gains on futures contracts		1,238,826
Net realized gains on foreign currency transactions	+	3,633,732
Net realized gains		24,870,054
Net change in unrealized appreciation (depreciation) on investments (net of foreign capital gain tax of $825,896)		101,157,579
Net change in unrealized appreciation (depreciation) on futures contracts		650,996
Net change in unrealized appreciation (depreciation) on foreign currency translations	+	(3,173,897	)
Net change in unrealized appreciation (depreciation)	+	98,634,678
Net realized and unrealized gains		123,504,732
Increase in net assets resulting from operations		$130,582,763

See financial notes 57

 Laudus International MarketMasters Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$7,078,031			$26,641,585
Net realized gains		24,870,054			224,500,692
Net change in unrealized appreciation (depreciation)	+	98,634,678			(286,715,625	)
Increase (Decrease) in net assets from operations		130,582,763			(35,573,348	)
Distributions to Shareholders
Distributions from net investment income
Investor Shares		(8,584,765	)		(9,151,462	)
Select Shares	+	(24,212,500	)		(24,452,646	)
Total distributions from net investment income		($32,797,265	)		($33,604,108	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares Sold
Investor Shares			822,577		$18,957,950			2,681,598		$63,944,369
Select Shares	+		4,956,684		113,345,484			17,762,259		421,251,532
Total shares sold			5,779,261		$132,303,434			20,443,857		$485,195,901
Shares Reinvested
Investor Shares			358,089		$7,806,344			364,557		$8,395,762
Select Shares	+		454,613		9,896,917			703,683		16,184,703
Total shares reinvested			812,702		$17,703,261			1,068,240		$24,580,465
Shares Redeemed
Investor Shares			(2,622,513	)	($60,115,654	)		(4,050,133	)	($96,267,673	)
Select Shares	+		(9,396,806	)	(215,494,700	)		(16,261,189	)	(386,422,770	)
Total shares redeemed			(12,019,319	)	($275,610,354	)		(20,311,322	)	($482,690,443	)
Net transactions in fund shares			(5,427,356	)	($125,603,659	)		1,200,775		$27,085,923
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			96,850,288		$2,223,024,551			95,649,513		$2,265,116,084
Total increase or decrease	+		(5,427,356	)	(27,818,161	)		1,200,775		(42,091,533	)
End of period			91,422,932		$2,195,206,390			96,850,288		$2,223,024,551
Distributions in excess of net investment income/Net investment income not yet distributed					($7,680,819	)				$18,038,415

58 See financial notes

 Laudus MarketMasters Funds

Financial Notes, unaudited

1. Business Structure of the Funds:

Each of the funds in this report is a series of Schwab Capital Trust (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 Capital Trust (organized May 7, 1993)	Schwab Target 2010 Fund
Laudus Small-Cap MarketMasters Fund	Schwab Target 2015 Fund
Laudus International MarketMasters Fund	Schwab Target 2020 Fund
Schwab S&P 500 Index Fund	Schwab Target 2025 Fund
Schwab Small-Cap Index Fund	Schwab Target 2030 Fund
Schwab Total Stock Market Index Fund	Schwab Target 2035 Fund
Schwab International Index Fund	Schwab Target 2040 Fund
Schwab MarketTrack All Equity Portfolio	Schwab Target 2045 Fund
Schwab MarketTrack Growth Portfolio	Schwab Target 2050 Fund
Schwab MarketTrack Balanced Portfolio	Schwab Target 2055 Fund
Schwab MarketTrack Conservative Portfolio	Schwab Fundamental US Large Company Index Fund
Schwab Balanced Fund	Schwab Fundamental US Small Company Index Fund
Schwab Core Equity Fund	Schwab Fundamental International Large Company Index Fund
Schwab Dividend Equity Fund	Schwab Fundamental International Small Company Index Fund
Schwab Large-Cap Growth Fund	Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Small-Cap Equity Fund	Schwab Fundamental Global Real Estate Index Fund
Schwab Hedged Equity Fund	Schwab Monthly Income Fund - Moderate Payout
Schwab Financial Services Fund	Schwab Monthly Income Fund - Enhanced Payout
Schwab Health Care Fund	Schwab Monthly Income Fund - Maximum Payout
Schwab International Core Equity Fund

Each fund in this report offers two share classes: Investor Shares and Select Shares^®. Shares of each class represent an interest in the same portfolio, but each class has different expenses and investment minimums.

Shares are bought and sold (subject to a redemption fee, see financial note 9) at closing net asset value per share (“NAV”), which is the price for all outstanding shares of a fund or share class, as applicable. 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 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 SEC.

(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 market value. Among other things, these procedures allow the funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:

•  Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at halfway between the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where

59

 Laudus MarketMasters Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.

•  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.

•  Foreign equity security fair valuation: The Board has adopted procedures to fair value foreign equity securities that are traded in markets that close prior to a fund valuing its holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, each fund seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter “arbitrage” market timers, who seek to exploit delays between the change in the value of a fund’s portfolio holdings and the NAV of the fund’s shares, and seeks to help ensure that the prices at which the fund’s shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of a fund and that of its comparative index or benchmark. The Board regularly reviews fair value determinations made by the funds pursuant to these procedures.

•  Futures contracts and forward foreign currency exchange contracts (“forwards”): Futures contracts are valued at their settlement prices as of the close of their exchanges. Forwards are valued based on that day’s forward exchange rates or by using an interpolated forward exchange rate for contracts with interim settlement dates.

•  Short-term securities (60 days or less to maturity): A short-term security may be valued at its amortized cost when it approximates the security’s market value.

•  Underlying funds: Mutual funds are valued at their respective NAVs. Exchange traded funds (“ETFs”) traded on a recognized securities exchange are valued at the last reported sale price that day or the official closing price, if applicable.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the funds disclose the fair value of their investments in a hierarchy that prioritizes the significant inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If the funds determine that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

The three levels of the fair value hierarchy are as follows:

•  Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities, ETFs and futures contracts. Investments in mutual funds are valued daily at their NAVs, and investments in ETFs are valued daily at the last reported sale price or the official closing price, which are classified as Level 1 prices, without consideration to the classification level of the specific investments held by an underlying fund.

•  Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are

60 

 Laudus MarketMasters Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

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. In addition, international securities whose markets close hours before the funds value their holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board has approved a vendor that calculates fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

•  Level 3 — significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and 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 April 30, 2015 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 market value may change daily.

Forward Foreign Currency Exchange Contracts: Forwards are contracts to buy and sell a currency at a set price on a future date. The value of the forwards is accounted for as unrealized appreciation or depreciation until the contracts settle, at which time the gains or losses are realized.

(c) Security Transactions:

Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.

Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the differences between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. These realized and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations in the Statement of Operations. The funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in

61

 Laudus MarketMasters Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Gains realized by the funds on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. In those instances, the funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.

When a fund closes out a futures contract or forward position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.

(d) Investment Income:

Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the day they learn of the ex-dividend date. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.

Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.

(e) Expenses:

Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to all funds within the trust generally are allocated among the funds in proportion to their average daily net assets.

For funds offering multiple share classes, the net investment income, other than class specific expenses, and the realized and unrealized gains or losses, are allocated daily to each class in proportion to their average daily net assets.

(f) Distributions to Shareholders:

The funds make distributions from net investment income and net realized capital gains, if any, once a year.

(g) Custody Credit:

The funds have an arrangement with their custodian bank, State Street Bank and Trust Company (“State Street”), under which the funds may receive a credit for their uninvested cash balance to offset their custody fees and accounting fees. The credit amounts, if any, are disclosed in the Statement of Operations as a reduction to the funds’ operating expenses.

(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. Accordingly, the funds distribute substantially all of their net investment income and realized net 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) Foreign Taxes:

The funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges and capital gains on investments. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in foreign markets in which the funds invest. These foreign taxes, if any, are paid by the funds and are disclosed in the Statement of Operations. Foreign taxes payable as of April 30, 2015, if any, are reflected in each fund’s Statement of Assets and Liabilities.

62 

 Laudus MarketMasters Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(k) 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.

3. Risk Factors:

Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.

Market Risk. Equity markets rise and fall daily. As with any investment whose performance is tied to these markets, the value of the investment in a fund will fluctuate, which means that investors could lose money.

Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

Investment Style Risk. The funds’ investment managers attempt to reduce the impact of the performance of any given investment style by investing in both value and growth style stocks. But whenever value stocks fall out of favor with investors, they may underperform growth stocks, and vice versa.

Small-Cap Risk. Historically, small-cap stocks have been riskier than large- and mid-cap stocks, and their prices may move sharply, especially during market upturns and downturns. Small-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies. During a period when small-cap stocks fall behind other types of investments — large-cap and mid-cap stocks, for instance — a fund’s small-cap holdings could reduce performance.

Large- and Mid-Cap Risk. Both large- and mid-cap stocks tend to go in and out of favor based on market and economic conditions. However, stocks of mid-cap companies tend to be more vulnerable to adverse business or economic events than larger, more established companies. During a period when large- and mid-cap U.S. stocks fall behind other types of investments — bonds and small-cap stocks, for instance — a fund’s performance also will lag those investments.

Management Risk. As with all actively managed funds, a fund is subject to the risk that its investment adviser and investment managers will select investments or allocate assets in a manner that could cause the fund to underperform or otherwise not meet its objective. Poor stock selection or a focus on securities in a particular sector may cause a fund to underperform its benchmark or other funds with a similar investment objective.

Foreign Investment Risk. A fund’s investments in securities of foreign issuers may involve certain risks that are greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These restrictions may negatively impact the value or liquidity of a fund’s investments, and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategies. These risks may be heightened in connection with investments in emerging markets.

Emerging Market Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting and reporting requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with a fund’s investments in emerging market countries which may be magnified by currency fluctuations relative to the U.S. dollar, and at times, it may be difficult to value such investments.

Currency Risk. As a result of a fund’s investments in securities denominated in, and/or receiving revenues in, foreign currencies, the fund will be subject to currency risk. This is the risk that those currencies will decline in value relative to the U.S. dollar. If such an event occurs, the dollar value of an investment in the fund would be adversely affected.

63

 Laudus MarketMasters Funds

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

Derivatives Risk. A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as liquidity risk, market risk and management risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to credit risk, leverage risk, 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. Credit risk is the risk that the counterparty to a derivatives transaction may not fulfill its obligations. Leverage risk is the risk that a small percentage of assets invested in derivatives can have a disproportionately large impact on a fund. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause a fund to realize higher amounts of short-term capital gain. These risks could cause a fund to lose more than the initial amount invested.

Multi-Manager Risk. Although CSIM monitors and seeks to coordinate the overall management of a fund, each investment manager makes investment decisions independently, and it is possible that the investment styles of the investment managers may not complement one another. As a result, a fund’s exposure to a given stock, industry or investment style could unintentionally be smaller or larger than if a fund had a single manager.

Liquidity Risk. A particular investment may be difficult to purchase or sell. A fund may be unable to sell illiquid securities at an advantageous time or price.

Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.

4. Affiliates and Affiliated Transactions:

Charles Schwab Investment Management, Inc. (“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 CSIM and the trust.

For its advisory and administrative services to the funds, CSIM is entitled to receive an annual fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:

	Laudus Small-Cap		Laudus International
% of Average Daily Net Assets	MarketMasters Fund		MarketMasters Fund
First $500 million		1.17%		1.29%
$500 million to $1 billion		1.13%		1.275%
Over $1 billion		1.07%		1.25%

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 service providers, including Charles Schwab & Co., Inc. (a broker-dealer affiliate of CSIM, “Schwab”), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the funds. Schwab serves as the funds’ paying agent under the Plan for making payments of the shareholder service fee due to the service providers (other than Schwab) under the Plan. All shareholder service fees paid by the funds to Schwab in its capacity as the funds’ paying agent will be passed through to the service providers, and Schwab will not retain any portion of such fees.

Pursuant to the Plan, each fund’s shares are subject to an annual shareholder servicing fee up to 0.25% for Investor Shares and 0.20% for Select Shares. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab (or, in the case of payments made to Schwab, pursuant to Schwab’s written agreement with the funds). Payments under the Plan are made as described above regardless of Schwab’s or the service provider’s actual cost of providing the services. If the cost of providing the services under the Plan is less than the payments received, the unexpended portion of the fees may be retained as profit by Schwab or the service provider.

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

64 

 Laudus MarketMasters Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes and certain non-routine expenses (“expense limitation”). The expense limitation as a percentage of average daily net assets is as follows:

	Laudus Small-Cap		Laudus International
	MarketMasters Fund		MarketMasters Fund
Investor Shares		1.35%		1.40%
Select Shares		1.20%		1.25%

Certain Schwab funds may own shares of other Schwab funds. The table below reflects the percentage of shares of each fund in this report that are owned by other Schwab funds as of April 30, 2015, as applicable:

	Underlying Funds
	Laudus Small-Cap		Laudus International
	MarketMasters Fund		MarketMasters Fund
Schwab Target 2010 Fund		0.3%		0.1%
Schwab Target 2015 Fund		0.7%		0.3%
Schwab Target 2020 Fund		4.9%		1.7%
Schwab Target 2025 Fund		4.9%		1.5%
Schwab Target 2030 Fund		11.6%		3.3%
Schwab Target 2035 Fund		5.6%		1.5%
Schwab Target 2040 Fund		16.3%		4.1%
Schwab Target 2045 Fund		1.2%		0.3%
Schwab Target 2050 Fund		1.0%		0.2%
Schwab Target 2055 Fund		0.6%		0.1%
Schwab Monthly Income Fund - Moderate Payout		—%		0.3%
Schwab Monthly Income Fund - Enhanced Payout		—%		0.4%
Schwab Monthly Income Fund - Maximum Payout		—%		0.1%
Schwab Balanced Fund		12.6%		—%

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 only. The interest rate to be charged on a loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. 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 a 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:

The funds have access to custodian overdraft facilities, a committed line of credit of $150 million with State Street, an uncommitted line of credit of $100 million with Bank of America, N.A. and an uncommitted line of credit of $50 million with Brown Brothers Harriman & Co. The funds pay interest on the amounts they borrow at rates that are negotiated periodically. The funds also pay an annual fee to State Street for the committed line of credit.

There were no borrowings from the lines of credit by the funds during the period. However, the funds may have utilized their overdraft facility and incurred an interest expense, which is disclosed on a fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

65

 Laudus MarketMasters Funds

Financial Notes, unaudited (continued)

7. Purchases and Sales/Maturities of Investment Securities:

For the period ended April 30, 2015, purchases and sales/maturities of securities (excluding short-term obligations) were as follows:

	Purchases of Securities		Sales/Maturities of Securities
Laudus Small-Cap MarketMasters Fund		$43,382,125		$43,130,601
Laudus International MarketMasters Fund		658,504,678		794,610,012

8. Derivatives:

The funds entered into equity index futures contracts during the report period. The funds invested in futures contracts to equitize available cash. The fair value and variation margin for futures contracts held at April 30, 2015 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, the month-end average contract values of futures contracts held by the funds and the month-end average number of contracts held were as follows:

	Contract Values		Number of Contracts
Laudus Small-Cap MarketMasters Fund		$3,358,500		28
Laudus International MarketMasters Fund		25,564,698		282

The Laudus International MarketMasters Fund invested in forwards during the report period. The fund invested in forwards in connection with the purchase and sale of portfolio securities to minimize the uncertainty of changes in future foreign currency exchange rates and to hedge exposure to certain currencies. Refer to financial note 2(b) for the fund’s accounting policies with respect to forwards and financial note 3 for disclosures concerning the risks of investing in forwards. During the period, the month-end average forward foreign currency notional amount and the month-end average unrealized appreciation were $52,537,905 and $1,735,312, respectively.

As of April 30, 2015, the derivatives contracts held by the funds, categorized by primary risk exposure, were:

	Laudus Small-Cap		Laudus International
	MarketMasters Fund		MarketMasters Fund
Asset Derivatives	Fair Value
Equity Index - Futures Contracts1		$—		$575,097
Forward Foreign Currency Exchange Contracts2		—		1,271,177
Total		$—		$1,846,274
Liability Derivatives	Fair Value
Equity Index - Futures Contracts3		$21,925		$—
Forward Foreign Currency Exchange Contracts4		—		981,818
Total		$21,925		$981,818

1	Includes cumulative unrealized appreciation of futures contracts as reported in the Schedule of Portfolio Holdings. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.
2	Statement of Assets and Liabilities location: Unrealized appreciation on forward foreign currency exchange contracts.
3	Includes cumulative unrealized depreciation of futures contracts as reported in the Schedule of Portfolio Holdings. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.
4	Statement of Assets and Liabilities location: Unrealized depreciation on forward foreign currency exchange contracts.

66 

 Laudus MarketMasters Funds

Financial Notes, unaudited (continued)

8. Derivatives (continued):

The effects of the derivatives held by the funds in the Statement of Operations for the period ended April 30, 2015 were:

				Laudus
	Laudus Small-Cap			International
	MarketMasters Fund			MarketMasters Fund
Equity Index Futures Contracts
Realized Gains (Losses)1		$502,441			$1,238,826
Change in Unrealized Appreciation (Depreciation)2		(178,544	)		650,996
Forward Foreign Currency Exchange Contracts
Realized Gains (Losses)1		$—			$4,228,469
Change in Unrealized Appreciation (Depreciation)2		—			(3,426,950	)

1	Statement of Operations location: Net realized gains (losses) on futures contracts and net realized gains (losses) on foreign currency transactions.
2	Statement of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts and net change in unrealized appreciation (depreciation) on foreign currency translations.

The funds’ forwards are entered into pursuant to International Swaps and Derivatives Association, Inc. (“ISDA”) agreements which govern certain terms of derivative transactions. ISDA agreements typically contain, among other things, master netting provisions in the event of a default or other termination event. Master netting provisions allow the funds and the counterparty, in the event of a default or other termination event, to offset payable and receivable amounts for each party related to derivative contracts to one net amount payable by either the funds or the counterparty. The Laudus International MarketMasters Fund’s forwards, which are reported gross in the Statement of Assets and Liabilities, are presented in the table below. The following table presents the fund’s forwards, net of amounts available for offset under a master netting agreement and net of any related collateral received by the fund for assets and pledged by the fund for liabilities as of April 30, 2015.

Laudus International MarketMasters Fund
				Gross Amounts Not Offset in the
				Statement of Assets and Liabilities
	Gross Amounts of Assets
	Presented in the			Financial			Cash Collateral		Net
Counterparty	Statement of Assets and Liabilities			Instruments			Received		Amounts(a)
State Street Bank & Trust Co.		$1,271,177			($981,818	)		$—		$289,359
Total		$1,271,177			($981,818	)		$—		$289,359
	Gross Amounts of Liabilities
	Presented in the			Financial			Cash Collateral		Net
Counterparty	Statement of Assets and Liabilities			Instruments			Pledged		Amounts(b)
State Street Bank & Trust Co.		($981,818	)		$981,818			$—		$—
Total		($981,818	)		$981,818			$—		$—

a	Represents the net amount due from the counterparty in the event of default.
b	Represents the net amount due to the counterparty in the event of default.

67

 Laudus MarketMasters Funds

Financial Notes, unaudited (continued)

9. Redemption Fee:

The funds charge a 2.00% redemption fee on shares sold or exchanged within 30 days of the original purchase date. Such amounts are netted against redemption proceeds on the Statement of Changes in Net Assets. The redemption fees charged during the current and prior periods are:

	Current Period		Prior Period
	(11/1/14-4/30/15)		(11/1/13-10/31/14)
Laudus Small-Cap MarketMasters Fund		$438		$384
Laudus International MarketMasters Fund		8,052		6,455

10. Federal Income Taxes:

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2014, the funds had capital loss carryforwards available to offset future net capital gains before the expiration dates as follows:

	Laudus Small-Cap		Laudus International
Expiration Date	MarketMasters Fund		MarketMasters Fund
October 31, 2017		$—		$3,773,115
Total		$—		$3,773,115

Qualified late-year losses are certain capital and ordinary losses which occur during the portion of a fund’s taxable year subsequent to October 31. A fund may elect to treat any portion of qualified late-year losses as arising during the first day of the next taxable year. For the year ended October 31, 2014, the funds had late-year ordinary losses deferred and capital loss carryforwards utilized as follows:

	Laudus Small-Cap		Laudus International
	MarketMasters Fund		MarketMasters Fund
Late-year ordinary losses deferred		$1,396,656		$—
Capital loss carryforwards utilized		22,461,534		206,581,377

As of October 31, 2014, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended October 31, 2014, the funds did not incur any interest or penalties.

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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Trustees and Officers

The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust. The Fund Complex includes 95 funds.

The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-800-435-4000.

 Independent Trustees

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served1)	During the Past Five Years	the Trustee	Other Directorships
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 and Laudus Institutional Trust since 2010)	Senior Fellow, The Hoover Institution at Stanford University (Oct. 1979 – present); Senior Fellow Stanford Institute for Economic Policy Research (2000 – present); Professor of Public Policy, Stanford University (1994 – present).	74	Director, Gilead Sciences, Inc. (2005 – present)
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Private Investor.	74	Director, Symantec Corporation (2003 – present) Director, Corcept Therapeutics Incorporated (2004 – present) Director, Adamas Pharmaceuticals, Inc. (2009 – present)
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Retired. Executive Vice President and General Manager of Small Business Group, Intuit, Inc. (financial software and services firm for consumers and small businesses) (Dec. 2008 – Sept. 2013)	74	Director, KLA-Tencor Corporation (2008 – present)

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 Independent Trustees (continued)

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served1)	During the Past Five Years	the Trustee	Other Directorships
Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2015)	Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (May 2009 – present); Director, Asset International, Inc. (publisher of financial services information) (Jan. 2009 – Nov. 2014).	95	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 and Laudus Institutional Trust since 2010)	Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (Mar. 1990 –present).	74	Director, Eaton (2012 – present) Director and Chairman of the Audit Committee, Oneok Partners LP (2003 – 2013) Director, Oneok, Inc. (2009 – 2013) Lead Independent Director, Board of Cooper Industries (2002 – 2012)
Joseph H. Wender 1944 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010)	Senior Consultant, Goldman Sachs & Co., Inc. (investment banking and securities firm) (Jan. 2008 – present); Partner, Colgin Partners, LLC (vineyards) (Feb. 1998 – present).	74	Board Member and Chairman of the Audit Committee, Isis Pharmaceuticals (1994 – present)

70 

 Interested Trustees

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served)	During the Past Five Years	the Trustee	Other Directorships
Charles R. Schwab2 1937 Chairman and Trustee (Chairman and Trustee of The Charles Schwab Family of Funds since 1989; Schwab Investments since 1991; Schwab Capital Trust since 1993; Schwab Annuity Portfolios since 1994; Laudus Trust and Laudus Institutional Trust since 2010)	Chairman and Director, The Charles Schwab Corporation (1986 – present); Chairman and Director of Charles Schwab & Co., Inc. (1971 – present); Chairman and Director of Charles Schwab Investment Management, Inc. (1989 – present); Chairman and Director of Charles Schwab Bank (2003 – present); Chairman and Chief Executive Officer of Schwab (SIS) Holdings Inc. I and Schwab International Holdings, Inc. (1996 – present); and Director, Chairman and Chief Executive Officer, Schwab Holdings, Inc. (1979 – present).	74	Chairman and Director, The Charles Schwab Corporation (1986 – present) Director, Yahoo! Inc. (2014 – present)
Walter W. Bettinger II2 1960 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (2008 – present); Director, Charles Schwab Bank (2006 – present); and Director Schwab Holdings, Inc. (2008 – present).	95	Director, The Charles Schwab Corporation (2008 – present)

 Officers of the Trust

Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served3)	Principal Occupations During the Past Five Years
Marie Chandoha 1961 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (January 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – August 2010).
George Pereira 1964 Treasurer and Principal Financial Officer, Schwab Funds Treasurer and Chief Financial Officer, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust and Laudus Institutional Trust since 2006)	Senior Vice President and Chief Financial Officer (Nov. 2004 – present), Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present) and Schwab ETFs (Oct. 2009 – present); Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present).

71

 Officers of the Trust (continued)

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
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Equities, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009).
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Senior Managing Director, Global Head of Active Fixed-Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies Loomis, Sayles & Company (April 2006 – Jan. 2008).
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President (Sept. 2011 – present), Vice President (March 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present), Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds 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, Laudus Trust and Laudus Institutional Trust since 2005)	Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (March 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary, Schwab ETFs (Oct. 2009 – present).

1	Trustees remain in office until they resign, retire or are removed by shareholder vote. The Schwab and Laudus Funds’ retirement policy requires that independent trustees retire at age 72 or after twenty years as a trustee, whichever comes first. In addition, the retirement policy requires any independent trustee of Schwab Funds or Laudus Funds to retire from all Boards upon their required retirement date from either Board.
2	Mr. Schwab and Mr. Bettinger are Interested Trustees because they own stock of The Charles Schwab Corporation, the parent company of the investment adviser.
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 Boards.

.

72 

Glossary

asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.

asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.

Barclays U.S. Aggregate Bond Index A broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-back securities (agency fixed-rate and hybrid ARM passthroughs), asset-backed securities, and commercial mortgage-backed securities.

Barclays U.S. Treasury Bills 1 − 3 Months Index An index that includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value.

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.

cap, capitalization See “market cap.”

capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.

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.

market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.

MSCI EAFE (Europe, Australasia, Far East) Index A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.

net asset value (NAV) The value of one share of a 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.

price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.

price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.

restricted and illiquid securities Restricted securities are securities that are subject to legal restrictions on their sale. Restricted securities generally can be sold in privately negotiated transactions, pursuant to an exemption from registration under the Securities Act of1933 (the “1933 Act”), or in a registered public offering. Certain restricted securities, such as Section 4(a)(2) commercial paper and Rule 144A securities under the 1933 Act, may be considered to be liquid if they meet the criteria for liquidity established by the Board. Illiquid securities generally are any securities that cannot be disposed of promptly and in the ordinary course of business at approximately the amount at which a fund has valued the instruments. The liquidity of a fund’s investments is monitored under the supervision and direction of the Board. Investments currently not considered liquid include repurchase agreements not maturing within seven days and certain restricted securities.

return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.

Russell 2000 Index An index that measures the performance of the small-cap segment of the U.S. equity universe. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

S&P 500 Index A market capitalization index that is designed to measure the performance of 500 leading publicly held companies in leading industries of the U.S. economy.

stock A share of ownership, or equity, in the issuing company.

total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.

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.

73

Notes

Notes

Notes

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 Laudus Funds’ website at www.csimfunds.com/laudusfunds_prospectus, the SEC’s website at http://www.sec.gov, or by contacting Laudus Funds at 1-800-447-3332.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.csimfunds.com/laudusfunds_prospectus or the SEC’s website at www.sec.gov.

The Laudus Funds^tm

Laudus Growth Investors

Laudus U.S. Large Cap Growth Fund

Laudus MarketMasters Funds^tm

Laudus International MarketMasters Fund^tm

Laudus Small-Cap MarketMasters Fund^tm

Laudus Mondrian Funds^tm

Laudus Mondrian International Equity Fund

Laudus Mondrian Emerging Markets Fund

Laudus Mondrian International Government Fixed Income Fund

Laudus Mondrian Global Government Fixed Income Fund

The Laudus Funds include the Laudus U.S. Large Cap Growth Fund and the Laudus Mondrian Funds, which are part of the Laudus Trust and distributed by ALPS Distributors Inc.; and the Laudus MarketMasters Funds, which are part of the Schwab Capital Trust, and distributed by Charles Schwab & Co., Inc. Charles Schwab & Co., Inc. and ALPS Distributors Inc. are unaffiliated entities.

For More Information about the Funds:

Investment Adviser

Charles Schwab Investment Management, Inc.

211 Main Street, San Francisco, CA 94105

Schwab Funds^®

1-800-407-0256

 —

This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.

^© 2015 Charles Schwab & Co., Inc. All rights reserved. Member SIPC^®. Printed on recycled paper. MFR13563-18

00143416

COMMAND PERFORMANCE^TM

Semiannual report dated April 30, 2015, enclosed.

Schwab Target Funds

Schwab Target 2010 Fund

Schwab Target 2015 Fund

Schwab Target 2020 Fund

Schwab Target 2025 Fund

Schwab Target 2030 Fund

Schwab Target 2035 Fund

Schwab Target 2040 Fund

Schwab Target 2045 Fund

Schwab Target 2050 Fund

Schwab Target 2055 Fund

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This wrapper is not part of the shareholder report.

Schwab Target Funds

Semiannual Report

April 30, 2015

Schwab Target 2010 Fund

Schwab Target 2015 Fund

Schwab Target 2020 Fund

Schwab Target 2025 Fund

Schwab Target 2030 Fund

Schwab Target 2035 Fund

Schwab Target 2040 Fund

Schwab Target 2045 Fund

Schwab Target 2050 Fund

Schwab Target 2055 Fund

Schwab Target Funds

In This Report

Performance at a Glance	3
From the President	5
Fund Management	7
Performance and Fund Facts
Schwab Target 2010 Fund	8
Schwab Target 2015 Fund	9
Schwab Target 2020 Fund	10
Schwab Target 2025 Fund	11
Schwab Target 2030 Fund	12
Schwab Target 2035 Fund	13
Schwab Target 2040 Fund	14
Schwab Target 2045 Fund	15
Schwab Target 2050 Fund	16
Schwab Target 2055 Fund	17
Fund Expenses	18
Financial Statements and Portfolio Holdings
Schwab Target 2010 Fund	19
Schwab Target 2015 Fund	25
Schwab Target 2020 Fund	31
Schwab Target 2025 Fund	37
Schwab Target 2030 Fund	43
Schwab Target 2035 Fund	49
Schwab Target 2040 Fund	55
Schwab Target 2045 Fund	61
Schwab Target 2050 Fund	67
Schwab Target 2055 Fund	73
Financial Notes	79
Trustees and Officers	97
Glossary	101

Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: Charles Schwab & Co., Inc. (Schwab).

Performance at a Glance

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.csimfunds.com.

Total Return for the 6 Months Ended April 30, 2015
Schwab Target 2010 Fund (Ticker Symbol: SWBRX)	2.85%
Target 2010 Composite Index	2.79%
Fund Category: Morningstar Target Date 2000-2010	2.29%
Performance Details	page 8
Schwab Target 2015 Fund (Ticker Symbol: SWGRX)	2.91%
Target 2015 Composite Index	2.87%
Fund Category: Morningstar Target Date 2011-2015	2.46%
Performance Details	page 9
Schwab Target 2020 Fund (Ticker Symbol: SWCRX)	3.39%
Target 2020 Composite Index	3.38%
Fund Category: Morningstar Target Date 2016-2020	2.85%
Performance Details	page 10
Schwab Target 2025 Fund (Ticker Symbol: SWHRX)	3.81%
Target 2025 Composite Index	3.74%
Fund Category: Morningstar Target Date 2021-2025	3.22%
Performance Details	page 11
Schwab Target 2030 Fund (Ticker Symbol: SWDRX)	4.08%
Target 2030 Composite Index	4.03%
Fund Category: Morningstar Target Date 2026-2030	3.57%
Performance Details	page 12

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 components that make up each of the composite indices may vary over time. For index definitions, please see the Glossary.

Fund 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.

Schwab Target Funds 3

Performance at a Glance 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.csimfunds.com.

Total Return for the 6 Months Ended April 30, 2015
Schwab Target 2035 Fund (Ticker Symbol: SWIRX)	4.31%
Target 2035 Composite Index	4.27%
Fund Category: Morningstar Target Date 2031-2035	3.82%
Performance Details	page 13
Schwab Target 2040 Fund (Ticker Symbol: SWERX)	4.54%
Target 2040 Composite Index	4.50%
Fund Category: Morningstar Target Date 2036-2040	4.01%
Performance Details	page 14
Schwab Target 2045 Fund (Ticker Symbol: SWMRX)	4.58%
Target 2045 Composite Index	4.62%
Fund Category: Morningstar Target Date 2041-2045	4.14%
Performance Details	page 15
Schwab Target 2050 Fund (Ticker Symbol: SWNRX)	4.79%
Target 2050 Composite Index	4.71%
Fund Category: Morningstar Target Date 2046-2050	4.23%
Performance Details	page 16
Schwab Target 2055 Fund (Ticker Symbol: SWORX)	4.79%
Target 2055 Composite Index	4.80%
Fund Category: Morningstar Target Date 2051+	4.26%
Performance Details	page 17

Minimum Initial Investment¹ $ 100

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 components that make up each of the composite indices may vary over time. For index definitions, please see the Glossary.

Fund 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 Please see the funds’ prospectus for further detail and eligibility requirements.

4 Schwab Target Funds

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.

Dear Shareholder,

At Charles Schwab Investment Management, we design our investment products to serve as part of the foundation of an investor’s portfolio. Within each of our Schwab Target Funds is a mix of active, passive, proprietary, and third-party strategies, seeking to provide diversification by investing in a combination of other funds. The funds are professionally managed according to projected retirement dates, and rebalanced to become more conservative as a target date approaches and beyond.

For the six-month reporting period ended April 30, 2015, the funds generated positive returns that generally tracked their comparative indices. The broad U.S. stock market benefitted from historically low short-term interest rates and overall positive corporate earnings reports, which contributed to several equity indices reaching record highs during the reporting period. The U.S. bond market also performed well overall, despite bouts of volatility surrounding speculation over the timing of a potential short-term interest rate rise by the Federal Reserve, as well as fluctuations in the price of oil. The slight rebound in oil prices toward the end of the reporting period supported both stocks and bonds alike, with the S&P 500 Index and the Barclays U.S. Aggregate Bond Index returning 4.4% and 2.1%, respectively.

Global economic growth showed signs of improvement, resulting in many international developed stock markets rallying over the reporting period. Subsiding geopolitical tensions in Russia helped, as did relative stability in Greece and the eurozone. The U.S. dollar remained strong as many central

 Asset Class Performance Comparison % returns during the six months ended 4/30/2015

This graph compares the performance of various asset classes during the report period. Final performance figures for the period are in the key below.

	4.40%	S&P 500® Index: measures U.S. large-cap stocks
	4.65%	Russell 2000® Index: measures U.S. small-cap stocks
	6.81%	MSCI EAFE® Index (Net): measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East
	2.06%	Barclays U.S. Aggregate Bond Index: measures the U.S. bond market
	0.01%	Barclays U.S. Treasury Bills 1-3 Months Index: measures short-term U.S. Treasury obligations

Index figures assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Past performance is not an indication of future results.

For index definitions, please see the Glossary.

Data source: Index provider websites and CSIM.

Nothing in this report represents a recommendation of a security by the investment adviser.

Management views and portfolio holdings may have changed since the report date.

Schwab Target Funds 5

From the President continued

For the six-month reporting period ended April 30, 2015, the funds generated positive returns that generally tracked their comparative indices.

banks, including the European Central Bank and the Bank of Japan, increased economic measures to stimulate growth and combat threats of deflation. When the U.S. dollar rises against foreign currencies, returns on overseas investments will generally be reduced in U.S. dollar terms. However, as international markets performed particularly well this reporting period, returns on many of these investments were positive even when translated into U.S. dollars. Reflecting these conditions, the MSCI EAFE Index, which broadly represents the performance of international stocks, returned 6.8%¹ for the reporting period.

For more information about the performance, holdings, and portfolio characteristics of the Schwab Target Funds, please continue reading this report. In addition, you can find further details about these funds by visiting our new website at www.csimfunds.com, which provides improved functionality, enhanced design, and access to industry insights. We are also happy to hear from you at 1-800-435-4000.

Sincerely,

For full definitions of the referenced indices, please see the Glossary

¹ The total return cited is calculated net of foreign withholding taxes.

6 Schwab Target Funds

Fund Management

Zifan Tang, Ph.D., CFA, Managing Director and Head of Asset Allocation Strategies, leads the portfolio management team and has overall responsibility for all aspects of the management of the funds. She was appointed portfolio manager of the funds in February 2012. Prior to joining CSIM in 2012, Ms. Tang was a product manager at Thomson Reuters and, from 1997 to 2009, worked as a portfolio manager at Barclays Global Investors, which was subsequently acquired by BlackRock.

Schwab Target Funds 7

Schwab Target 2010 Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Fund and Inception Date	6 Months			1 Year			5 Years			Since Inception
Fund: Schwab Target 2010 Fund (7/1/05)		2.85	%		5.92	%		7.04	%		4.92	%
Target 2010 Composite Index		2.79	%		5.81	%		6.95	%		5.73	%
Dow Jones U.S. Total Stock Market Index		4.73	%		12.67	%		14.37	%		8.47	%
Barclays U.S. Aggregate Bond Index		2.06	%		4.46	%		4.12	%		4.65	%
Fund Category: Morningstar Target Date 2000-2010		2.29	%		4.50	%		6.42	%		4.81	%

Fund Expense Ratios³: Net 0.50%; Gross 0.67%

 Statistics

Number of Holdings	23
Portfolio Turnover Rate4	21%

 Asset Class Weightings % of Investments⁵

Fixed-Income Funds – Intermediate-Term Bond	38.4%
Equity Funds – Large-Cap	25.6%
Fixed-Income Funds – Short-Term Bond	9.4%
Equity Funds – International	8.4%
Fixed-Income Funds – Inflation-Protected Bond	6.2%
Short-Term Investments	3.3%
Equity Funds – Small-Cap	3.0%
Money Market Funds	3.0%
Equity Funds – Global Real Estate	2.1%
Fixed-Income Funds – International Bond	0.6%
Total	100.0%

 Top Holdings % of Net Assets^6,7

Schwab Total Bond Market Fund	23.0%
Schwab Short-Term Bond Market Fund	9.4%
Metropolitan West Total Return Bond Fund, Class I	9.1%
Schwab Core Equity Fund	6.9%
Laudus U.S. Large Cap Growth Fund	6.4%
Schwab Treasury Inflation Protected Securities Index Fund	6.2%
Schwab S&P 500 Index Fund	5.8%
Laudus International MarketMasters Fund, Select Shares	4.9%
Wells Fargo Advantage Core Bond Fund, Class I	4.5%
Schwab International Core Equity Fund	3.5%
Total	79.7%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

The Laudus U.S. Large Cap Growth Fund is part of Laudus Trust and distributed by ALPS Distributors, Inc. The Laudus MarketMasters Funds are part of Schwab Capital Trust and distributed by Charles Schwab & Co., Inc.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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. Includes expenses of the underlying funds in which the fund invests. The annualized weighted average expense ratio of the underlying funds was 0.50%. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed income securities, exchange traded funds, and cash equivalents, including money market securities.
6	This list is not a recommendation of any security by the investment adviser.
7	The holdings listed exclude any temporary liquidity investments.

8 Schwab Target Funds

Schwab Target 2015 Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Fund and Inception Date	6 Months			1 Year			5 Years			Since Inception
Fund: Schwab Target 2015 Fund (3/12/08)		2.91	%		6.14	%		7.83	%		5.59	%
Target 2015 Composite Index		2.87	%		6.02	%		7.69	%		5.54	%
Dow Jones U.S. Total Stock Market Index		4.73	%		12.67	%		14.37	%		9.41	%
Barclays U.S. Aggregate Bond Index		2.06	%		4.46	%		4.12	%		4.78	%
Fund Category: Morningstar Target Date 2011-2015		2.46	%		4.93	%		6.99	%		4.86	%

Fund Expense Ratios³: Net 0.53%; Gross 0.64%

 Statistics

Number of Holdings	23
Portfolio Turnover Rate4	23%

 Asset Class Weightings % of Investments⁵

Fixed-Income Funds – Intermediate-Term Bond	37.3%
Equity Funds – Large-Cap	26.6%
Fixed-Income Funds – Short-Term Bond	9.0%
Equity Funds – International	8.8%
Fixed-Income Funds – Inflation-Protected Bond	6.0%
Short-Term Investments	3.8%
Equity Funds – Small-Cap	3.3%
Money Market Funds	2.3%
Equity Funds – Global Real Estate	2.2%
Fixed-Income Funds – International Bond	0.7%
Total	100.0%

 Top Holdings % of Net Assets^6,7

Schwab Total Bond Market Fund	22.0%
Schwab Short-Term Bond Market Fund	8.9%
Metropolitan West Total Return Bond Fund, Class I	8.9%
Schwab Core Equity Fund	7.2%
Laudus U.S. Large Cap Growth Fund	6.6%
Schwab Treasury Inflation Protected Securities Index Fund	6.0%
Schwab S&P 500 Index Fund	6.0%
Laudus International MarketMasters Fund, Select Shares	5.1%
Wells Fargo Advantage Core Bond Fund, Class I	4.2%
Schwab International Core Equity Fund	3.6%
Total	78.5%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

The Laudus U.S. Large Cap Growth Fund is part of Laudus Trust and distributed by ALPS Distributors, Inc. The Laudus MarketMasters Funds are part of Schwab Capital Trust and distributed by Charles Schwab & Co., Inc.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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. Includes expenses of the underlying funds in which the fund invests. The annualized weighted average expense ratio of the underlying funds was 0.53%. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed income securities, exchange traded funds, and cash equivalents, including money market securities.
6	This list is not a recommendation of any security by the investment adviser.
7	The holdings listed exclude any temporary liquidity investments.

Schwab Target Funds 9

Schwab Target 2020 Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Fund and Inception Date	6 Months			1 Year			5 Years			Since Inception
Fund: Schwab Target 2020 Fund (7/1/05)		3.39	%		7.05	%		9.06	%		6.30	%
Target 2020 Composite Index		3.38	%		7.00	%		8.98	%		6.64	%
Dow Jones U.S. Total Stock Market Index		4.73	%		12.67	%		14.37	%		8.47	%
Barclays U.S. Aggregate Bond Index		2.06	%		4.46	%		4.12	%		4.65	%
Fund Category: Morningstar Target Date 2016-2020		2.85	%		5.64	%		7.48	%		5.10	%

Fund Expense Ratios³: Net 0.61%; Gross 0.65%

 Statistics

Number of Holdings	25
Portfolio Turnover Rate4	18%

 Asset Class Weightings % of Investments⁵

Equity Funds – Large-Cap	34.5%
Fixed-Income Funds – Intermediate-Term Bond	31.5%
Equity Funds – International	12.6%
Fixed-Income Funds – Short-Term Bond	5.4%
Equity Funds – Small-Cap	5.3%
Short-Term Investments	3.5%
Equity Funds – Global Real Estate	2.9%
Fixed-Income Funds – Inflation-Protected Bond	2.3%
Fixed-Income Funds – International Bond	1.1%
Money Market Funds	0.9%
Total	100.0%

 Top Holdings % of Net Assets^6,7

Schwab Total Bond Market Fund	16.6%
Schwab Core Equity Fund	9.4%
Laudus U.S. Large Cap Growth Fund	8.6%
Metropolitan West Total Return Bond Fund, Class I	8.5%
Schwab S&P 500 Index Fund	7.8%
Laudus International MarketMasters Fund, Select Shares	7.0%
Schwab Short-Term Bond Market Fund	5.4%
Schwab International Core Equity Fund	4.9%
Schwab Dividend Equity Fund	4.2%
TCW Relative Value Large Cap Fund, Class I	3.6%
Total	76.0%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

The Laudus U.S. Large Cap Growth Fund is part of Laudus Trust and distributed by ALPS Distributors, Inc. The Laudus MarketMasters Funds are part of Schwab Capital Trust and distributed by Charles Schwab & Co., Inc.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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. Includes expenses of the underlying funds in which the fund invests. The annualized weighted average expense ratio of the underlying funds was 0.61%. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed income securities, exchange traded funds, and cash equivalents, including money market securities.
6	This list is not a recommendation of any security by the investment adviser.
7	The holdings listed exclude any temporary liquidity investments.

10 Schwab Target Funds

Schwab Target 2025 Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Fund and Inception Date	6 Months			1 Year			5 Years			Since Inception
Fund: Schwab Target 2025 Fund (3/12/08)		3.81	%		7.74	%		9.94	%		7.53	%
Target 2025 Composite Index		3.74	%		7.69	%		9.81	%		6.82	%
Dow Jones U.S. Total Stock Market Index		4.73	%		12.67	%		14.37	%		9.41	%
Barclays U.S. Aggregate Bond Index		2.06	%		4.46	%		4.12	%		4.78	%
Fund Category: Morningstar Target Date 2021-2025		3.22	%		6.37	%		8.69	%		5.69	%

Fund Expense Ratios³: Net 0.67%; Gross 0.73%

 Statistics

Number of Holdings	24
Portfolio Turnover Rate4	15%

 Asset Class Weightings % of Investments⁵

Equity Funds – Large-Cap	40.1%
Fixed-Income Funds – Intermediate-Term Bond	26.0%
Equity Funds – International	15.3%
Equity Funds – Small-Cap	7.1%
Equity Funds – Global Real Estate	3.4%
Short-Term Investments	3.3%
Fixed-Income Funds – Short-Term Bond	3.2%
Fixed-Income Funds – International Bond	1.1%
Fixed-Income Funds – Inflation-Protected Bond	0.5%
Total	100.0%

 Top Holdings % of Net Assets^6,7

Schwab Total Bond Market Fund	12.4%
Schwab Core Equity Fund	11.0%
Laudus U.S. Large Cap Growth Fund	10.0%
Schwab S&P 500 Index Fund	9.1%
Laudus International MarketMasters Fund, Select Shares	8.3%
Metropolitan West Total Return Bond Fund, Class I	7.2%
Schwab International Core Equity Fund	5.7%
Schwab Dividend Equity Fund	4.9%
Schwab Small-Cap Equity Fund	4.7%
TCW Relative Value Large Cap Fund, Class I	4.1%
Total	77.4%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

The Laudus U.S. Large Cap Growth Fund is part of Laudus Trust and distributed by ALPS Distributors, Inc. The Laudus MarketMasters Funds are part of Schwab Capital Trust and distributed by Charles Schwab & Co., Inc.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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. Includes expenses of the underlying funds in which the fund invests. The annualized weighted average expense ratio of the underlying funds was 0.67%. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed income securities, exchange traded funds, and cash equivalents, including money market securities.
6	This list is not a recommendation of any security by the investment adviser.
7	The holdings listed exclude any temporary liquidity investments.

Schwab Target Funds 11

Schwab Target 2030 Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Fund and Inception Date	6 Months			1 Year			5 Years			Since Inception
Fund: Schwab Target 2030 Fund (7/1/05)		4.08	%		8.34	%		10.50	%		7.17	%
Target 2030 Composite Index		4.03	%		8.24	%		10.43	%		7.28	%
Dow Jones U.S. Total Stock Market Index		4.73	%		12.67	%		14.37	%		8.47	%
Barclays U.S. Aggregate Bond Index		2.06	%		4.46	%		4.12	%		4.65	%
Fund Category: Morningstar Target Date 2026-2030		3.57	%		6.91	%		8.77	%		5.52	%

Fund Expense Ratios³: Net 0.72%; Gross 0.75%

 Statistics

Number of Holdings	22
Portfolio Turnover Rate4	14%

 Asset Class Weightings % of Investments⁵

Equity Funds – Large-Cap	44.3%
Fixed-Income Funds – Intermediate-Term Bond	20.5%
Equity Funds – International	17.5%
Equity Funds – Small-Cap	8.6%
Equity Funds – Global Real Estate	3.9%
Short-Term Investments	2.4%
Fixed-Income Funds – Short-Term Bond	1.9%
Fixed-Income Funds – International Bond	0.9%
Total	100.0%

 Top Holdings % of Net Assets^6,7

Schwab Core Equity Fund	12.0%
Laudus U.S. Large Cap Growth Fund	11.0%
Schwab S&P 500 Index Fund	10.0%
Laudus International MarketMasters Fund, Select Shares	9.3%
Schwab Total Bond Market Fund	8.9%
Schwab International Core Equity Fund	6.4%
Metropolitan West Total Return Bond Fund, Class I	5.7%
Schwab Small-Cap Equity Fund	5.6%
Schwab Dividend Equity Fund	5.4%	��
TCW Relative Value Large Cap Fund, Class I	4.6%
Total	78.9%

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 you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

The Laudus U.S. Large Cap Growth Fund is part of Laudus Trust and distributed by ALPS Distributors, Inc. The Laudus MarketMasters Funds are part of Schwab Capital Trust and distributed by Charles Schwab & Co., Inc.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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. Includes expenses of the underlying funds in which the fund invests. The annualized weighted average expense ratio of the underlying funds was 0.72%. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed income securities, exchange traded funds, and cash equivalents, including money market securities.
6	This list is not a recommendation of any security by the investment adviser.
7	The holdings listed exclude any temporary liquidity investments.

12 Schwab Target Funds

Schwab Target 2035 Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Fund and Inception Date	6 Months			1 Year			5 Years			Since Inception
Fund: Schwab Target 2035 Fund (3/12/08)		4.31	%		8.81	%		11.11	%		8.17	%
Target 2035 Composite Index		4.27	%		8.71	%		11.02	%		7.45	%
Dow Jones U.S. Total Stock Market Index		4.73	%		12.67	%		14.37	%		9.41	%
Barclays U.S. Aggregate Bond Index		2.06	%		4.46	%		4.12	%		4.78	%
Fund Category: Morningstar Target Date 2031-2035		3.82	%		7.44	%		9.75	%		6.12	%

Fund Expense Ratios³: Net 0.75%; Gross 0.82%

 Statistics

Number of Holdings	22
Portfolio Turnover Rate4	9%

 Asset Class Weightings % of Investments⁵

Equity Funds – Large-Cap	47.5%
Equity Funds – International	19.5%
Fixed-Income Funds – Intermediate-Term Bond	15.2%
Equity Funds – Small-Cap	9.9%
Equity Funds – Global Real Estate	4.2%
Short-Term Investments	2.1%
Fixed-Income Funds – Short-Term Bond	1.0%
Fixed-Income Funds – International Bond	0.6%
Total	100.0%

 Top Holdings % of Net Assets^6,7

Schwab Core Equity Fund	12.9%
Laudus U.S. Large Cap Growth Fund	11.8%
Schwab S&P 500 Index Fund	10.7%
Laudus International MarketMasters Fund, Select Shares	10.2%
Schwab International Core Equity Fund	7.0%
Schwab Small-Cap Equity Fund	6.5%
Schwab Total Bond Market Fund	6.0%
Schwab Dividend Equity Fund	5.8%
TCW Relative Value Large Cap Fund, Class I	4.9%
Schwab Global Real Estate Fund	4.2%
Total	80.0%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

The Laudus U.S. Large Cap Growth Fund is part of Laudus Trust and distributed by ALPS Distributors, Inc. The Laudus MarketMasters Funds are part of Schwab Capital Trust and distributed by Charles Schwab & Co., Inc.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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. Includes expenses of the underlying funds in which the fund invests. The annualized weighted average expense ratio of the underlying funds was 0.75%. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed income securities, exchange traded funds, and cash equivalents, including money market securities.
6	This list is not a recommendation of any security by the investment adviser.
7	The holdings listed exclude any temporary liquidity investments.

Schwab Target Funds 13

Schwab Target 2040 Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Fund and Inception Date	6 Months			1 Year			5 Years			Since Inception
Fund: Schwab Target 2040 Fund (7/1/05)		4.54	%		9.17	%		11.56	%		7.77	%
Target 2040 Composite Index		4.50	%		9.12	%		11.44	%		7.72	%
Dow Jones U.S. Total Stock Market Index		4.73	%		12.67	%		14.37	%		8.47	%
Barclays U.S. Aggregate Bond Index		2.06	%		4.46	%		4.12	%		4.65	%
Fund Category: Morningstar Target Date 2036-2040		4.01	%		7.69	%		9.53	%		5.93	%

Fund Expense Ratios³: Net 0.78%; Gross 0.82%

 Statistics

Number of Holdings	21
Portfolio Turnover Rate4	7%

 Asset Class Weightings % of Investments⁵

Equity Funds – Large-Cap	50.4%
Equity Funds – International	21.4%
Equity Funds – Small-Cap	11.3%
Fixed-Income Funds – Intermediate-Term Bond	9.8%
Equity Funds – Global Real Estate	4.5%
Short-Term Investments	1.9%
Fixed-Income Funds – Short-Term Bond	0.4%
Fixed-Income Funds – International Bond	0.3%
Total	100.0%

 Top Holdings % of Net Assets^6,7

Schwab Core Equity Fund	13.7%
Laudus U.S. Large Cap Growth Fund	12.5%
Schwab S&P 500 Index Fund	11.3%
Laudus International MarketMasters Fund, Select Shares	10.9%
Schwab International Core Equity Fund	7.5%
Schwab Small-Cap Equity Fund	7.4%
Schwab Dividend Equity Fund	6.2%
TCW Relative Value Large Cap Fund, Class I	5.2%
Schwab Global Real Estate Fund	4.5%
Laudus Small-Cap MarketMasters Fund, Select Shares	3.9%
Total	83.1%

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 you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

The Laudus U.S. Large Cap Growth Fund is part of Laudus Trust and distributed by ALPS Distributors, Inc. The Laudus MarketMasters Funds are part of Schwab Capital Trust and distributed by Charles Schwab & Co., Inc.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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. Includes expenses of the underlying funds in which the fund invests. The annualized weighted average expense ratio of the underlying funds was 0.78%. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed income securities, exchange traded funds, and cash equivalents, including money market securities.
6	This list is not a recommendation of any security by the investment adviser.
7	The holdings listed exclude any temporary liquidity investments.

14 Schwab Target Funds

Schwab Target 2045 Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Fund and Inception Date	6 Months			1 Year			Since Inception
Fund: Schwab Target 2045 Fund (1/23/13)		4.58	%		9.32	%		13.95	%
Target 2045 Composite Index		4.62	%		9.34	%		14.05	%
Dow Jones U.S. Total Stock Market Index		4.73	%		12.67	%		18.21	%
Barclays U.S. Aggregate Bond Index		2.06	%		4.46	%		2.30	%
Fund Category: Morningstar Target Date 2041-2045		4.14	%		7.93	%		11.91	%

Fund Expense Ratios³: Net 0.80%; Gross 1.12%

 Statistics

Number of Holdings	21
Portfolio Turnover Rate4	4%

 Asset Class Weightings % of Investments⁵

Equity Funds – Large-Cap	51.9%
Equity Funds – International	22.4%
Equity Funds – Small-Cap	12.1%
Fixed-Income Funds – Intermediate-Term Bond	6.6%
Equity Funds – Global Real Estate	4.7%
Short-Term Investments	2.0%
Fixed-Income Funds – Short-Term Bond	0.2%
Fixed-Income Funds – International Bond	0.1%
Total	100.0%

 Top Holdings % of Net Assets^6,7

Schwab Core Equity Fund	14.2%
Laudus U.S. Large Cap Growth Fund	12.9%
Schwab S&P 500 Index Fund	11.7%
Laudus International MarketMasters Fund, Select Shares	11.3%
Schwab Small-Cap Equity Fund	7.9%
Schwab International Core Equity Fund	7.8%
Schwab Dividend Equity Fund	6.4%
TCW Relative Value Large Cap Fund, Class I	5.3%
Schwab Global Real Estate Fund	4.7%
Laudus Small-Cap MarketMasters Fund, Select Shares	4.2%
Total	86.4%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

The Laudus U.S. Large Cap Growth Fund is part of Laudus Trust and distributed by ALPS Distributors, Inc. The Laudus MarketMasters Funds are part of Schwab Capital Trust and distributed by Charles Schwab & Co., Inc.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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. Includes expenses of the underlying funds in which the fund invests. The annualized weighted average expense ratio of the underlying funds was 0.80%. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed income securities, exchange traded funds, and cash equivalents, including money market securities.
6	This list is not a recommendation of any security by the investment adviser.
7	The holdings listed exclude any temporary liquidity investments.

Schwab Target Funds 15

Schwab Target 2050 Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Fund and Inception Date	6 Months			1 Year			Since Inception
Fund: Schwab Target 2050 Fund (1/23/13)		4.79	%		9.61	%		14.38	%
Target 2050 Composite Index		4.71	%		9.51	%		14.40	%
Dow Jones U.S. Total Stock Market Index		4.73	%		12.67	%		18.21	%
Barclays U.S. Aggregate Bond Index		2.06	%		4.46	%		2.30	%
Fund Category: Morningstar Target Date 2046-2050		4.23	%		8.07	%		11.69	%

Fund Expense Ratios³: Net 0.81%; Gross 1.20%

 Statistics

Number of Holdings	22
Portfolio Turnover Rate4	3%

 Asset Class Weightings % of Investments⁵

Equity Funds – Large-Cap	52.9%
Equity Funds – International	23.1%
Equity Funds – Small-Cap	12.6%
Equity Funds – Global Real Estate	4.8%
Fixed-Income Funds – Intermediate-Term Bond	4.3%
Short-Term Investments	2.0%
Fixed-Income Funds – International Bond	0.2%
Fixed-Income Funds – Short-Term Bond	0.1%
Total	100.0%

 Top Holdings % of Net Assets^6,7

Schwab Core Equity Fund	14.4%
Laudus U.S. Large Cap Growth Fund	13.2%
Schwab S&P 500 Index Fund	11.9%
Laudus International MarketMasters Fund, Select Shares	11.7%
Schwab Small-Cap Equity Fund	8.2%
Schwab International Core Equity Fund	8.0%
Schwab Dividend Equity Fund	6.5%
TCW Relative Value Large Cap Fund, Class I	5.4%
Schwab Global Real Estate Fund	4.8%
Laudus Small-Cap MarketMasters Fund, Select Shares	4.4%
Total	88.5%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

The Laudus U.S. Large Cap Growth Fund is part of Laudus Trust and distributed by ALPS Distributors, Inc. The Laudus MarketMasters Funds are part of Schwab Capital Trust and distributed by Charles Schwab & Co., Inc.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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. Includes expenses of the underlying funds in which the fund invests. The annualized weighted average expense ratio of the underlying funds was 0.81%. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed income securities, exchange traded funds, and cash equivalents, including money market securities.
6	This list is not a recommendation of any security by the investment adviser.
7	The holdings listed exclude any temporary liquidity investments.

16 Schwab Target Funds

Schwab Target 2055 Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Fund and Inception Date	6 Months			1 Year			Since Inception
Fund: Schwab Target 2055 Fund (1/23/13)		4.79	%		9.68	%		14.53	%
Target 2055 Composite Index		4.80	%		9.66	%		14.62	%
Dow Jones U.S. Total Stock Market Index		4.73	%		12.67	%		18.21	%
Barclays U.S. Aggregate Bond Index		2.06	%		4.46	%		2.30	%
Fund Category: Morningstar Target Date 2051+		4.26	%		8.06	%		12.42	%

Fund Expense Ratios³: Net 0.82%; Gross 1.50%

 Statistics

Number of Holdings	21
Portfolio Turnover Rate4	3%

 Asset Class Weightings % of Investments⁵

Equity Funds – Large-Cap	53.9%
Equity Funds – International	23.9%
Equity Funds – Small-Cap	13.2%
Equity Funds – Global Real Estate	4.9%
Short-Term Investments	2.1%
Fixed-Income Funds – Intermediate-Term Bond	1.9%
Fixed-Income Funds – International Bond	0.1%
Total	100.0%

 Top Holdings % of Net Assets^6,7

Schwab Core Equity Fund	14.8%
Laudus U.S. Large Cap Growth Fund	13.6%
Schwab S&P 500 Index Fund	12.2%
Laudus International MarketMasters Fund, Select Shares	12.0%
Schwab Small-Cap Equity Fund	8.6%
Schwab International Core Equity Fund	8.2%
Schwab Dividend Equity Fund	6.7%
TCW Relative Value Large Cap Fund, Class I	5.6%
Schwab Global Real Estate Fund	5.0%
Laudus Small-Cap MarketMasters Fund, Select Shares	4.6%
Total	91.3%

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 you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

The Laudus U.S. Large Cap Growth Fund is part of Laudus Trust and distributed by ALPS Distributors, Inc. The Laudus MarketMasters Funds are part of Schwab Capital Trust and distributed by Charles Schwab & Co., Inc.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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. Includes expenses of the underlying funds in which the fund invests. The annualized weighted average expense ratio of the underlying funds was 0.82%. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed income securities, exchange traded funds, and cash equivalents, including money market securities.
6	This list is not a recommendation of any security by the investment adviser.
7	The holdings listed exclude any temporary liquidity investments.

Schwab Target Funds 17

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 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 November 1, 2014 and held through April 30, 2015.

Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ¸ $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.

You may use this information to compare the ongoing costs of investing in a fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, 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.

					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio1		Account Value		(Net of Expenses)		During Period2
	(Annualized)		at 11/1/14		at 4/30/15		11/1/14–4/30/15
Schwab Target 2010 Fund
Actual Return		0.00%	$	1,000.00	$	1,028.50	$	0.00
Hypothetical 5% Return		0.00%	$	1,000.00	$	1,024.80	$	0.00
Schwab Target 2015 Fund
Actual Return		0.00%	$	1,000.00	$	1,029.10	$	0.00
Hypothetical 5% Return		0.00%	$	1,000.00	$	1,024.80	$	0.00
Schwab Target 2020 Fund
Actual Return		0.00%	$	1,000.00	$	1,033.90	$	0.00
Hypothetical 5% Return		0.00%	$	1,000.00	$	1,024.80	$	0.00
Schwab Target 2025 Fund
Actual Return		0.00%	$	1,000.00	$	1,038.10	$	0.00
Hypothetical 5% Return		0.00%	$	1,000.00	$	1,024.80	$	0.00
Schwab Target 2030 Fund
Actual Return		0.00%	$	1,000.00	$	1,040.80	$	0.00
Hypothetical 5% Return		0.00%	$	1,000.00	$	1,024.80	$	0.00
Schwab Target 2035 Fund
Actual Return		0.00%	$	1,000.00	$	1,043.10	$	0.00
Hypothetical 5% Return		0.00%	$	1,000.00	$	1,024.80	$	0.00
Schwab Target 2040 Fund
Actual Return		0.00%	$	1,000.00	$	1,045.40	$	0.00
Hypothetical 5% Return		0.00%	$	1,000.00	$	1,024.80	$	0.00
Schwab Target 2045 Fund
Actual Return		0.00%	$	1,000.00	$	1,045.80	$	0.00
Hypothetical 5% Return		0.00%	$	1,000.00	$	1,024.80	$	0.00
Schwab Target 2050 Fund
Actual Return		0.00%	$	1,000.00	$	1,047.90	$	0.00
Hypothetical 5% Return		0.00%	$	1,000.00	$	1,024.80	$	0.00
Schwab Target 2055 Fund
Actual Return		0.00%	$	1,000.00	$	1,047.90	$	0.00
Hypothetical 5% Return		0.00%	$	1,000.00	$	1,024.80	$	0.00

1	Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights. The expenses incurred by the underlying funds in which the funds invest are not included in this ratio.
2	Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days of the period, and divided by the 365 days of the fiscal year.

18 Schwab Target Funds

Schwab Target 2010 Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		12.42			11.91			11.10			10.56			10.34			9.46
Income (loss) from investment operations:
Net investment income (loss)		0.11	1		0.19			0.21			0.22			0.23			0.23
Net realized and unrealized gains (losses)		0.24			0.52			0.85			0.57			0.24			0.89
Total from investment operations		0.35			0.71			1.06			0.79			0.47			1.12
Less distributions:
Distributions from net investment income		(0.25	)		(0.20	)		(0.25	)		(0.25	)		(0.25	)		(0.24	)
Net asset value at end of period		12.52			12.42			11.91			11.10			10.56			10.34
Total return (%)		2.85	2		6.08			9.74			7.63			4.63	3		11.99
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses4		—	5		—			—			—			—			0.00	6
Gross operating expenses4		0.15	5		0.17			0.18			0.18			0.14			0.16
Net investment income (loss)		1.86	5		1.53			1.77			1.95			2.11			2.21
Portfolio turnover rate		21	2		29			26			13			11			24
Net assets, end of period ($ x 1,000,000)		65			64			61			60			64			73

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ Includes proceeds from a litigation settlement related to an affiliated underlying fund. Without the litigation proceeds, performance would have been lower.

⁴ The expenses incurred by underlying funds in which the fund invests are not included in this ratio.

⁵ Annualized.

⁶ Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.

See financial notes 19

 Schwab Target 2010 Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	97	.0%	Other Investment Companies		54,613,873		63,329,036
	3	.3%	Short-Term Investments		2,184,875		2,184,875
	100	.3%	Total Investments		56,798,748		65,513,911
	(0	.3%)	Other Assets and Liabilities, Net				(226,550	)
	100	.0%	Net Assets				65,287,361

	Number		Value
Security	of Shares		($)
Other Investment Companies 97.0% of net assets
Equity Funds 39.2%
Global Real Estate 2.1%
Schwab Global Real Estate Fund (a)		185,447		1,353,760
International 8.5%
Laudus International MarketMasters Fund, Select Shares (a)		134,633		3,231,197
Schwab International Core Equity Fund (a)		227,858		2,299,084
				5,530,281
Large-Cap 25.6%
Dodge & Cox Stock Fund		2,503		453,842
Laudus U.S. Large Cap Growth Fund *(a)		240,822		4,195,114
Schwab Core Equity Fund (a)		197,872		4,535,218
Schwab Dividend Equity Fund (a)		118,727		2,026,669
Schwab S&P 500 Index Fund (a)		115,335		3,778,378
TCW Relative Value Large Cap Fund, Class I		76,241		1,747,444
				16,736,665
Small-Cap 3.0%
Laudus Small-Cap MarketMasters Fund, Select Shares (a)		34,955		662,400
Schwab Small-Cap Equity Fund (a)		60,457		1,306,476
				1,968,876
				25,589,582
Fixed-Income Funds 54.8%
Inflation-Protected Bond 6.2%
Schwab Treasury Inflation Protected Securities Index Fund (a)		363,348		4,073,136
Intermediate-Term Bond 38.6%
Metropolitan West Total Return Bond Fund, Class I		539,095		5,913,869
Natixis Loomis Sayles Investment Grade Bond Fund, Class Y Shares		108,330		1,277,206
Schwab Total Bond Market Fund (a)		1,562,330		15,029,613
Wells Fargo Advantage Core Bond Fund, Class I		228,926		2,953,150
				25,173,838
International Bond 0.6%
Laudus Mondrian International Government Fixed Income Fund *(a)		37,134		357,598
Short-Term Bond 9.4%
Schwab Short-Term Bond Market Fund (a)		661,596		6,166,073
				35,770,645
Money Market Fund 3.0%
Schwab Value Advantage Money Fund, Institutional Prime Shares 0.04% (a)(b)		1,968,809		1,968,809
Total Other Investment Companies
(Cost $54,613,873)				63,329,036
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investments 3.3% of net assets
Time Deposits 3.3%
Australia & New Zealand Banking Group Ltd.
0.03%, 05/01/15		659,685		659,685
DNB
0.03%, 05/01/15		659,685		659,685
JPMorgan Chase Bank
0.03%, 05/01/15		659,685		659,685
Sumitomo Mitsui Banking Corp.
0.03%, 05/01/15		205,820		205,820
				2,184,875
Total Short-Term Investments
(Cost $2,184,875)				2,184,875
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $57,599,400 and the unrealized appreciation and depreciation were $7,964,286 and ($49,775), respectively, with a net unrealized appreciation of $7,914,511.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.
(b)	The rate shown is the 7-day yield.

20 See financial notes

 Schwab Target 2010 Fund

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Other Investment Companies1		$63,329,036		$—		$—		$63,329,036
Short-Term Investments1		—		2,184,875		—		2,184,875
Total		$63,329,036		$2,184,875		$—		$65,513,911

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 21

 Schwab Target 2010 Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated underlying funds, at value (cost $43,118,710)		$50,983,525
Investments in unaffiliated issuers, at value (cost $13,680,038)	+	14,530,386
Total investments, at value (cost $56,798,748)		65,513,911
Receivables:
Investments sold		600,000
Dividends		44,812
Fund shares sold		44,018
Due from investment adviser		1,005
Prepaid expenses	+	5,788
Total assets		66,209,534
Liabilities
Payables:
Investments bought		484,682
Fund shares redeemed		413,754
Accrued expenses	+	23,737
Total liabilities		922,173
Net Assets
Total assets		66,209,534
Total liabilities	−	922,173
Net assets		$65,287,361
Net Assets by Source
Capital received from investors		66,850,568
Distributions in excess of net investment income		(75,147	)
Net realized capital losses		(10,203,223	)
Net unrealized capital appreciation		8,715,163
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$65,287,361		5,214,249			$12.52

22 See financial notes

 Schwab Target 2010 Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated underlying funds		$520,259
Dividends received from unaffiliated underlying funds		77,275
Interest	+	338
Total investment income		597,872
Expenses
Professional fees		15,655
Transfer agent fees		11,012
Registration fees		7,773
Shareholder reports		4,075
Portfolio accounting fees		3,920
Independent trustees’ fees		3,271
Custodian fees		1,938
Other expenses	+	1,478
Total expenses		49,122
Expense reduction by CSIM	−	49,122
Net expenses	−	—
Net investment income		597,872
Realized and Unrealized Gains (Losses)
Realized capital gain distributions received from affiliated underlying funds		1,919,912
Realized capital gain distributions received from unaffiliated underlying funds		25,837
Net realized gains on sales of affiliated underlying funds		586,617
Net realized gains on sales of unaffiliated underlying funds	+	174,160
Net realized gains		2,706,526
Net change in unrealized appreciation (depreciation) on affiliated underlying funds		(1,348,186	)
Net change in unrealized appreciation (depreciation) on unaffiliated underlying funds	+	(108,768	)
Net change in unrealized appreciation (depreciation)	+	(1,456,954	)
Net realized and unrealized gains		1,249,572
Increase in net assets resulting from operations		$1,847,444

See financial notes 23

 Schwab Target 2010 Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$597,872			$947,578
Net realized gains		2,706,526			4,161,004
Net change in unrealized appreciation (depreciation)	+	(1,456,954	)		(1,521,551	)
Increase in net assets from operations		1,847,444			3,587,031
Distributions to Shareholders
Distributions from net investment income		($1,277,875	)		($1,036,165	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			507,295		$6,299,798			955,289		$11,575,490
Shares reinvested			97,175		1,194,285			81,616		967,148
Shares redeemed	+		(526,730	)	(6,553,193	)		(1,041,619	)	(12,568,302	)
Net transactions in fund shares			77,740		$940,890			(4,714	)	($25,664	)
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			5,136,509		$63,776,902			5,141,223		$61,251,700
Total increase or decrease	+		77,740		1,510,459			(4,714	)	2,525,202
End of period			5,214,249		$65,287,361			5,136,509		$63,776,902
Distributions in excess of net investment income/Net investment income not yet distributed					($75,147	)				$604,856

24 See financial notes

Schwab Target 2015 Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		12.81			12.22			11.13			10.48			10.16			9.09
Income (loss) from investment operations:
Net investment income (loss)		0.12	1		0.19			0.20			0.20			0.19			0.16
Net realized and unrealized gains (losses)		0.24			0.60			1.12			0.66			0.32			1.06
Total from investment operations		0.36			0.79			1.32			0.86			0.51			1.22
Less distributions:
Distributions from net investment income		(0.27	)		(0.20	)		(0.23	)		(0.21	)		(0.19	)		(0.15	)
Distributions from net realized gains		(0.56	)		—			—			—			—			—
Total distributions		(0.83	)		(0.20	)		(0.23	)		(0.21	)		(0.19	)		(0.15	)
Net asset value at end of period		12.34			12.81			12.22			11.13			10.48			10.16
Total return (%)		2.91	2		6.56			12.06			8.41			5.10			13.55
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses3		—	4		—			—			—			—			0.00	5
Gross operating expenses3		0.09	4		0.11			0.14			0.19			0.22			0.39
Net investment income (loss)		1.92	4		1.52			1.72			1.85			1.94			1.91
Portfolio turnover rate		23	2		32			16			13			16			13
Net assets, end of period ($ x 1,000,000)		118			111			94			70			53			37

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ The expenses incurred by underlying funds in which the fund invests are not included in this ratio.

⁴ Annualized.

⁵ Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.

See financial notes 25

 Schwab Target 2015 Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	95	.9%	Other Investment Companies		100,077,854		112,683,955
	3	.8%	Short-Term Investments		4,445,156		4,445,156
	99	.7%	Total Investments		104,523,010		117,129,111
	0	.3%	Other Assets and Liabilities, Net				385,245
	100	.0%	Net Assets				117,514,356

	Number		Value
Security	of Shares		($)
Other Investment Companies 95.9% of net assets
Equity Funds 40.8%
Global Real Estate 2.2%
Schwab Global Real Estate Fund (a)		351,353		2,564,877
International 8.8%
Laudus International MarketMasters Fund, Select Shares (a)		251,851		6,044,429
Schwab International Core Equity Fund (a)		423,910		4,277,253
				10,321,682
Large-Cap 26.5%
Dodge & Cox Stock Fund		4,634		840,130
Laudus U.S. Large Cap Growth Fund *(a)		446,591		7,779,622
Schwab Core Equity Fund (a)		370,141		8,483,635
Schwab Dividend Equity Fund (a)		222,072		3,790,767
Schwab S&P 500 Index Fund (a)		214,920		7,040,790
TCW Relative Value Large Cap Fund, Class I		142,130		3,257,631
				31,192,575
Small-Cap 3.3%
Laudus Small-Cap MarketMasters Fund, Select Shares (a)		68,984		1,307,253
Schwab Small-Cap Equity Fund (a)		119,476		2,581,880
				3,889,133
				47,968,267
Fixed-Income Funds 52.8%
Inflation-Protected Bond 6.0%
Schwab Treasury Inflation Protected Securities Index Fund (a)		629,418		7,055,781
Intermediate-Term Bond 37.2%
Metropolitan West Total Return Bond Fund, Class I		956,882		10,496,998
Natixis Loomis Sayles Investment Grade Bond Fund, Class Y Shares		205,194		2,419,235
Schwab Total Bond Market Fund (a)		2,682,815		25,808,680
Wells Fargo Advantage Core Bond Fund, Class I		385,948		4,978,733
				43,703,646
International Bond 0.7%
Laudus Mondrian International Government Fixed Income Fund *(a)		78,534		756,280
Short-Term Bond 8.9%
Schwab Short-Term Bond Market Fund (a)		1,127,448		10,507,813
				62,023,520
Money Market Fund 2.3%
Schwab Value Advantage Money Fund, Institutional Prime Shares 0.04% (a)(b)		2,692,168		2,692,168
Total Other Investment Companies
(Cost $100,077,854)				112,683,955
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investments 3.8% of net assets
Time Deposits 3.8%
Australia & New Zealand Banking Group Ltd.
0.03%, 05/01/15		1,177,573		1,177,573
DNB
0.03%, 05/01/15		1,177,573		1,177,573
JPMorgan Chase Bank
0.03%, 05/01/15		1,177,573		1,177,573
Sumitomo Mitsui Banking Corp.
0.03%, 05/01/15		912,437		912,437
				4,445,156
Total Short-Term Investments
(Cost $4,445,156)				4,445,156
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $104,945,977 and the unrealized appreciation and depreciation were $12,386,194 and ($203,060), respectively, with a net unrealized appreciation of $12,183,134.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.
(b)	The rate shown is the 7-day yield.

26 See financial notes

 Schwab Target 2015 Fund

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in					Significant
	Active Markets for			Other Significant		Unobservable
	Identical Assets			Observable Inputs		Inputs
Description	(Level 1)			(Level 2)		(Level 3)		Total
Other Investment Companies1		$112,683,955			$—		$—		$112,683,955
Short-Term Investments1		—			4,445,156		—		4,445,156
			��
Total		$112,683,955			$4,445,156		$—		$117,129,111

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 27

 Schwab Target 2015 Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated underlying funds, at value (cost $79,433,599)		$90,691,228
Investments in unaffiliated issuers, at value (cost $25,089,411)	+	26,437,883
Total investments, at value (cost $104,523,010)		117,129,111
Receivables:
Investments sold		940,000
Fund shares sold		408,332
Dividends		76,496
Due from investment adviser		1,533
Prepaid expenses	+	441
Total assets		118,555,913
Liabilities
Payables:
Investments bought		956,280
Fund shares redeemed		72,308
Accrued expenses	+	12,969
Total liabilities		1,041,557
Net Assets
Total assets		118,555,913
Total liabilities	−	1,041,557
Net assets		$117,514,356
Net Assets by Source
Capital received from investors		100,479,244
Distributions in excess of net investment income		(305,205	)
Net realized capital gains		4,734,216
Net unrealized capital appreciation		12,606,101
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$117,514,356		9,525,923			$12.34

28 See financial notes

 Schwab Target 2015 Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated underlying funds		$939,648
Dividends received from unaffiliated underlying funds		141,570
Interest	+	615
Total investment income		1,081,833
Expenses
Professional fees		15,871
Transfer agent fees		11,266
Registration fees		8,661
Shareholder reports		4,913
Portfolio accounting fees		4,416
Independent trustees’ fees		3,381
Custodian fees		2,743
Other expenses	+	1,398
Total expenses		52,649
Expense reduction by CSIM	−	52,649
Net expenses	−	—
Net investment income		1,081,833
Realized and Unrealized Gains (Losses)
Realized capital gain distributions received from affiliated underlying funds		3,737,876
Realized capital gain distributions received from unaffiliated underlying funds		50,969
Net realized gains on sales of affiliated underlying funds		1,090,453
Net realized gains on sales of unaffiliated underlying funds	+	301,984
Net realized gains		5,181,282
Net change in unrealized appreciation (depreciation) on affiliated underlying funds		(2,818,372	)
Net change in unrealized appreciation (depreciation) on unaffiliated underlying funds	+	(211,788	)
Net change in unrealized appreciation (depreciation)	+	(3,030,160	)
Net realized and unrealized gains		2,151,122
Increase in net assets resulting from operations		$3,232,955

See financial notes 29

 Schwab Target 2015 Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$1,081,833			$1,599,816
Net realized gains		5,181,282			5,236,905
Net change in unrealized appreciation (depreciation)	+	(3,030,160	)		(281,221	)
Increase in net assets from operations		3,232,955			6,555,500
Distributions to Shareholders
Distributions from net investment income		(2,377,309	)		(1,610,833	)
Distributions from net realized gains	+	(4,869,324	)		—
Total distributions		($7,246,633	)		($1,610,833	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			1,578,698		$19,589,065			3,043,782		$37,901,842
Shares reinvested			564,457		6,841,214			125,055		1,526,926
Shares redeemed	+		(1,292,386	)	(16,005,236	)		(2,202,942	)	(27,468,032	)
Net transactions in fund shares			850,769		$10,425,043			965,895		$11,960,736
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			8,675,154		$111,102,991			7,709,259		$94,197,588
Total increase	+		850,769		6,411,365			965,895		16,905,403
End of period			9,525,923		$117,514,356			8,675,154		$111,102,991
Distributions in excess of net investment income/Net investment income not yet distributed					($305,205	)				$990,271

30 See financial notes

Schwab Target 2020 Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		14.32			13.52			11.94			11.13			10.80			9.63
Income (loss) from investment operations:
Net investment income (loss)		0.15	1		0.21			0.22			0.22			0.22			0.20
Net realized and unrealized gains (losses)		0.33			0.82			1.62			0.82			0.34			1.18
Total from investment operations		0.48			1.03			1.84			1.04			0.56			1.38
Less distributions:
Distributions from net investment income		(0.31	)		(0.23	)		(0.26	)		(0.23	)		(0.23	)		(0.21	)
Net asset value at end of period		14.49			14.32			13.52			11.94			11.13			10.80
Total return (%)		3.39	2		7.71			15.72			9.52			5.18			14.47
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses3		—	4		—			—			—			0.00	5		0.00	5
Gross operating expenses3		0.03	4		0.04			0.05			0.06			0.06			0.07
Net investment income (loss)		2.08	4		1.48			1.71			1.89			1.92			2.01
Portfolio turnover rate		18	2		26			14			13			15			15
Net assets, end of period ($ x 1,000,000)		534			499			415			306			273			240

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ The expenses incurred by underlying funds in which the fund invests are not included in this ratio.

⁴ Annualized.

⁵ Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.

See financial notes 31

 Schwab Target 2020 Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	96	.5%	Other Investment Companies		435,854,132		515,378,681
	3	.5%	Short-Term Investments		18,739,919		18,739,919
	100	.0%	Total Investments		454,594,051		534,118,600
	(0	.0%)	Other Assets and Liabilities, Net				(60,355	)
	100	.0%	Net Assets				534,058,245

	Number		Value
Security	of Shares		($)
Other Investment Companies 96.5% of net assets
Equity Funds 55.3%
Global Real Estate 2.9%
Schwab Global Real Estate Fund (a)		2,114,399		15,435,114
International 12.5%
Laudus International MarketMasters Fund, Select Shares (a)		1,561,427		37,474,250
Laudus Mondrian Emerging Markets Fund, Institutional Shares (a)		420,630		3,562,740
Schwab International Core Equity Fund (a)		2,574,102		25,972,690
				67,009,680
Large-Cap 34.5%
Dodge & Cox Stock Fund		28,101		5,094,777
Laudus U.S. Large Cap Growth Fund *(a)		2,636,711		45,931,504
Schwab Core Equity Fund (a)		2,183,491		50,045,603
Schwab Dividend Equity Fund (a)		1,319,563		22,524,948
Schwab S&P 500 Index Fund (a)		1,268,367		41,551,695
TCW Relative Value Large Cap Fund, Class I		831,625		19,060,836
				184,209,363
Small-Cap 5.4%
Laudus Small-Cap MarketMasters Fund, Select Shares (a)		515,230		9,763,607
Schwab Small-Cap Equity Fund (a)		869,815		18,796,696
				28,560,303
				295,214,460
Fixed-Income Funds 40.3%
Inflation-Protected Bond 2.3%
Schwab Treasury Inflation Protected Securities Index Fund (a)		1,108,487		12,426,133
Intermediate-Term Bond 31.5%
Metropolitan West Total Return Bond Fund, Class I		4,111,784		45,106,271
Natixis Loomis Sayles Investment Grade Bond Fund, Class Y Shares		1,473,852		17,376,709
Schwab Intermediate-Term Bond Fund (a)		403,948		4,160,664
Schwab Total Bond Market Fund (a)		9,198,581		88,490,350
Wells Fargo Advantage Core Bond Fund, Class I		1,005,047		12,965,111
				168,099,105
International Bond 1.1%
Laudus Mondrian International Government Fixed Income Fund *(a)		604,830		5,824,509
Short-Term Bond 5.4%
Schwab Short-Term Bond Market Fund (a)		3,091,579		28,813,518
				215,163,265
Money Market Fund 0.9%
Schwab Value Advantage Money Fund, Institutional Prime Shares 0.04% (a)(b)		5,000,956		5,000,956
Total Other Investment Companies
(Cost $435,854,132)				515,378,681
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investments 3.5% of net assets
Time Deposits 3.5%
Australia & New Zealand Banking Group Ltd.
0.03%, 05/01/15		5,368,584		5,368,584
Barclays Capital, Inc.
0.03%, 05/01/15		2,634,167		2,634,167
DNB
0.03%, 05/01/15		5,368,584		5,368,584
Sumitomo Mitsui Banking Corp.
0.03%, 05/01/15		5,368,584		5,368,584
				18,739,919
Total Short-Term Investments
(Cost $18,739,919)				18,739,919
End of Investments.

32 See financial notes

 Schwab Target 2020 Fund

Portfolio Holdings (Unaudited) continued

At 04/30/15, the tax basis cost of the fund’s investments was $456,995,651 and the unrealized appreciation and depreciation were $78,482,631 and ($1,359,682), respectively, with a net unrealized appreciation of $77,122,949.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.
(b)	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 April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Other Investment Companies1		$515,378,681		$—		$—		$515,378,681
Short-Term Investments1		—		18,739,919		—		18,739,919
Total		$515,378,681		$18,739,919		$—		$534,118,600

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 33

 Schwab Target 2020 Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated underlying funds, at value (cost $344,274,779)		$415,774,977
Investments in unaffiliated issuers, at value (cost $110,319,272)	+	118,343,623
Total investments, at value (cost $454,594,051)		534,118,600
Receivables:
Investments sold		3,540,000
Fund shares sold		934,700
Dividends		270,074
Due from investment adviser		2,367
Interest		15
Prepaid expenses	+	11,583
Total assets		538,877,339
Liabilities
Payables:
Investments bought		4,729,566
Fund shares redeemed		54,969
Accrued expenses	+	34,559
Total liabilities		4,819,094
Net Assets
Total assets		538,877,339
Total liabilities	−	4,819,094
Net assets		$534,058,245
Net Assets by Source
Capital received from investors		440,092,806
Distributions in excess of net investment income		(1,746,305	)
Net realized capital gains		16,187,195
Net unrealized capital appreciation		79,524,549
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$534,058,245		36,855,378			$14.49

34 See financial notes

 Schwab Target 2020 Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated underlying funds		$4,531,466
Dividends received from unaffiliated underlying funds		780,034
Interest	+	2,504
Total investment income		5,314,004
Expenses
Professional fees		17,487
Shareholder reports		14,949
Registration fees		14,215
Transfer agent fees		13,777
Portfolio accounting fees		12,624
Custodian fees		5,743
Independent trustees’ fees		4,264
Other expenses	+	5,680
Total expenses		88,739
Expense reduction by CSIM	−	88,739
Net expenses	−	—
Net investment income		5,314,004
Realized and Unrealized Gains (Losses)
Realized capital gain distributions received from affiliated underlying funds		22,017,994
Realized capital gain distributions received from unaffiliated underlying funds		300,584
Net realized gains on sales of affiliated underlying funds		4,502,230
Net realized gains on sales of unaffiliated underlying funds	+	1,491,036
Net realized gains		28,311,844
Net change in unrealized appreciation (depreciation) on affiliated underlying funds		(15,318,110	)
Net change in unrealized appreciation (depreciation) on unaffiliated underlying funds	+	(1,087,599	)
Net change in unrealized appreciation (depreciation)	+	(16,405,709	)
Net realized and unrealized gains		11,906,135
Increase in net assets resulting from operations		$17,220,139

See financial notes 35

 Schwab Target 2020 Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$5,314,004			$6,816,459
Net realized gains		28,311,844			26,910,774
Net change in unrealized appreciation (depreciation)	+	(16,405,709	)		231,749
Increase in net assets from operations		17,220,139			33,958,982
Distributions to Shareholders
Distributions from net investment income		($10,865,751	)		($7,213,636	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			4,674,723		$67,087,547			8,720,572		$120,772,973
Shares reinvested			734,526		10,422,917			510,642		6,944,736
Shares redeemed	+		(3,410,232	)	(48,972,011	)		(5,023,958	)	(69,819,952	)
Net transactions in fund shares			1,999,017		$28,538,453			4,207,256		$57,897,757
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			34,856,361		$499,165,404			30,649,105		$414,522,301
Total increase	+		1,999,017		34,892,841			4,207,256		84,643,103
End of period			36,855,378		$534,058,245			34,856,361		$499,165,404
Distributions in excess of net investment income/Net investment income not yet distributed					($1,746,305	)				$3,805,442

36 See financial notes

Schwab Target 2025 Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		14.54			13.63			11.73			10.84			10.46			9.21
Income (loss) from investment operations:
Net investment income (loss)		0.15	1		0.21			0.21			0.19			0.19			0.16
Net realized and unrealized gains (losses)		0.39			0.93			1.93			0.89			0.38			1.24
Total from investment operations		0.54			1.14			2.14			1.08			0.57			1.40
Less distributions:
Distributions from net investment income		(0.32	)		(0.23	)		(0.24	)		(0.19	)		(0.19	)		(0.15	)
Distributions from net realized gains		(0.45	)		—			—			—			—			—
Total distributions		(0.77	)		(0.23	)		(0.24	)		(0.19	)		(0.19	)		(0.15	)
Net asset value at end of period		14.31			14.54			13.63			11.73			10.84			10.46
Total return (%)		3.81	2		8.44			18.54			10.14			5.44			15.34
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses3		—	4		—			—			0.00	5		—			0.00	5
Gross operating expenses3		0.04	4		0.06			0.08			0.10			0.14			0.24
Net investment income (loss)		2.14	4		1.39			1.57			1.73			1.66			1.62
Portfolio turnover rate		15	2		27			10			13			9			13
Net assets, end of period ($ x 1,000,000)		394			344			251			141			104			63

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ The expenses incurred by underlying funds in which the fund invests are not included in this ratio.

⁴ Annualized.

⁵ Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.

See financial notes 37

 Schwab Target 2025 Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	96	.8%	Other Investment Companies		336,120,762		381,596,648
	3	.3%	Short-Term Investments		13,162,143		13,162,143
	100	.1%	Total Investments		349,282,905		394,758,791
	(0	.1%)	Other Assets and Liabilities, Net				(492,457	)
	100	.0%	Net Assets				394,266,334

	Number		Value
Security	of Shares		($)
Other Investment Companies 96.8% of net assets
Equity Funds 66.0%
Global Real Estate 3.4%
Schwab Global Real Estate Fund (a)		1,851,396		13,515,190
International 15.3%
Laudus International MarketMasters Fund, Select Shares (a)		1,369,670		32,872,084
Laudus Mondrian Emerging Markets Fund, Institutional Shares (a)		562,578		4,765,037
Schwab International Core Equity Fund (a)		2,244,824		22,650,274
				60,287,395
Large-Cap 40.2%
Dodge & Cox Stock Fund		23,465		4,254,217
Laudus U.S. Large Cap Growth Fund *(a)		2,264,649		39,450,183
Schwab Core Equity Fund (a)		1,885,256		43,210,064
Schwab Dividend Equity Fund (a)		1,136,707		19,403,584
Schwab S&P 500 Index Fund (a)		1,089,206		35,682,381
TCW Relative Value Large Cap Fund, Class I		707,837		16,223,627
				158,224,056
Small-Cap 7.1%
Laudus Small-Cap MarketMasters Fund, Select Shares (a)		509,285		9,650,951
Schwab Small-Cap Equity Fund (a)		852,008		18,411,886
				28,062,837
				260,089,478
Fixed-Income Funds 30.8%
Inflation-Protected Bond 0.5%
Schwab Treasury Inflation Protected Securities Index Fund (a)		183,450		2,056,477
Intermediate-Term Bond 26.0%
Metropolitan West Total Return Bond Fund, Class I		2,578,605		28,287,293
Natixis Loomis Sayles Investment Grade Bond Fund, Class Y Shares		1,302,983		15,362,168
Schwab Intermediate-Term Bond Fund (a)		446,073		4,594,548
Schwab Total Bond Market Fund (a)		5,071,859		48,791,285
Wells Fargo Advantage Core Bond Fund, Class I		423,361		5,461,356
				102,496,650
International Bond 1.1%
Laudus Mondrian International Government Fixed Income Fund *(a)		434,167		4,181,027
Short-Term Bond 3.2%
Schwab Short-Term Bond Market Fund (a)		1,370,495		12,773,016
				121,507,170
Total Other Investment Companies
(Cost $336,120,762)				381,596,648
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investments 3.3% of net assets
Time Deposits 3.3%
Australia & New Zealand Banking Group Ltd.
0.03%, 05/01/15		3,963,852		3,963,852
DNB
0.03%, 05/01/15		3,963,852		3,963,852
JPMorgan Chase Bank
0.03%, 05/01/15		3,963,852		3,963,852
Sumitomo Mitsui Banking Corp.
0.03%, 05/01/15		1,270,587		1,270,587
				13,162,143
Total Short-Term Investments
(Cost $13,162,143)				13,162,143
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $350,430,835 and the unrealized appreciation and depreciation were $45,678,436 and ($1,350,480), respectively, with a net unrealized appreciation of $44,327,956.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.

38 See financial notes

 Schwab Target 2025 Fund

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Other Investment Companies1		$381,596,648		$—		$—		$381,596,648
Short-Term Investments1		—		13,162,143		—		13,162,143
Total		$381,596,648		$13,162,143		$—		$394,758,791

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 39

 Schwab Target 2025 Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated underlying funds, at value (cost $272,216,549)			$312,007,987
Investments in unaffiliated issuers, at value (cost $77,066,356)	+		82,750,804
Total investments, at value (cost $349,282,905)			394,758,791
Receivables:
Investments sold			2,130,000
Fund shares sold			1,470,266
Dividends			151,572
Due from investment adviser			2,508
Interest			11
Prepaid expenses	+		1,458
Total assets			398,514,606
Liabilities
Payables:
Investments bought			3,771,413
Fund shares redeemed			460,763
Accrued expenses	+		16,096
Total liabilities			4,248,272
Net Assets
Total assets			398,514,606
Total liabilities	−		4,248,272
Net assets			$394,266,334
Net Assets by Source
Capital received from investors		��	331,956,067
Distributions in excess of net investment income			(1,794,513	)
Net realized capital gains			18,628,894
Net unrealized capital appreciation			45,475,886
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$394,266,334		27,560,690			$14.31

40 See financial notes

 Schwab Target 2025 Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated underlying funds		$3,319,940
Dividends received from unaffiliated underlying funds		598,869
Interest	+	1,754
Total investment income		3,920,563
Expenses
Professional fees		16,730
Registration fees		14,534
Transfer agent fees		13,073
Shareholder reports		11,278
Portfolio accounting fees		11,120
Custodian fees		4,939
Independent trustees’ fees		3,920
Other expenses	+	3,016
Total expenses		78,610
Expense reduction by CSIM	−	78,610
Net expenses	−	—
Net investment income		3,920,563
Realized and Unrealized Gains (Losses)
Realized capital gain distributions received from affiliated underlying funds		17,879,699
Realized capital gain distributions received from unaffiliated underlying funds		247,721
Net realized gains on sales of affiliated underlying funds		1,581,682
Net realized gains on sales of unaffiliated underlying funds	+	35,367
Net realized gains		19,744,469
Net change in unrealized appreciation (depreciation) on affiliated underlying funds		(10,212,916	)
Net change in unrealized appreciation (depreciation) on unaffiliated underlying funds	+	216,450
Net change in unrealized appreciation (depreciation)	+	(9,996,466	)
Net realized and unrealized gains		9,748,003
Increase in net assets resulting from operations		$13,668,566

See financial notes 41

 Schwab Target 2025 Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$3,920,563			$4,167,926
Net realized gains		19,744,469			12,428,746
Net change in unrealized appreciation (depreciation)	+	(9,996,466	)		7,489,895
Increase in net assets from operations		13,668,566			24,086,567
Distributions to Shareholders
Distributions from net investment income		(7,880,064	)		(4,339,215	)
Distributions from net realized gains	+	(10,940,164	)		—
Total distributions		($18,820,228	)		($4,339,215	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			5,032,438		$71,864,020			8,491,229		$119,202,694
Shares reinvested			1,313,209		18,358,656			308,192		4,243,806
Shares redeemed	+		(2,451,933	)	(35,028,374	)		(3,588,071	)	(50,461,215	)
Net transactions in fund shares			3,893,714		$55,194,302			5,211,350		$72,985,285
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			23,666,976		$344,223,694			18,455,626		$251,491,057
Total increase	+		3,893,714		50,042,640			5,211,350		92,732,637
End of period			27,560,690		$394,266,334			23,666,976		$344,223,694
Distributions in excess of net investment income/Net investment income not yet distributed					($1,794,513	)				$2,164,988

42 See financial notes

Schwab Target 2030 Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		15.77			14.70			12.42			11.43			11.05			9.69
Income (loss) from investment operations:
Net investment income (loss)		0.17	1		0.22			0.22			0.19			0.19			0.17
Net realized and unrealized gains (losses)		0.46			1.10			2.31			0.99			0.38			1.36
Total from investment operations		0.63			1.32			2.53			1.18			0.57			1.53
Less distributions:
Distributions from net investment income		(0.36	)		(0.25	)		(0.25	)		(0.19	)		(0.19	)		(0.17	)
Distributions from net realized gains		(0.20	)		—			—			—			—			—
Total distributions		(0.56	)		(0.25	)		(0.25	)		(0.19	)		(0.19	)		(0.17	)
Net asset value at end of period		15.84			15.77			14.70			12.42			11.43			11.05
Total return (%)		4.08	2		9.11			20.73			10.52			5.20			15.97
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses3		—	4		—			—			—			—			0.00	5
Gross operating expenses3		0.03	4		0.03			0.04			0.05			0.05			0.08
Net investment income (loss)		2.20	4		1.38			1.59			1.62			1.60			1.64
Portfolio turnover rate		14	2		26			10			12			8			14
Net assets, end of period ($ x 1,000,000)		779			727			621			444			372			296

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ The expenses incurred by underlying funds in which the fund invests are not included in this ratio.

⁴ Annualized.

⁵ Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.

See financial notes 43

 Schwab Target 2030 Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	97	.3%	Other Investment Companies		605,244,936		757,354,024
	2	.4%	Short-Term Investments		18,805,043		18,805,043
	99	.7%	Total Investments		624,049,979		776,159,067
	0	.3%	Other Assets and Liabilities, Net				2,709,316
	100	.0%	Net Assets				778,868,383

	Number		Value
Security	of Shares		($)
Other Investment Companies 97.3% of net assets
Equity Funds 74.1%
Global Real Estate 3.9%
Schwab Global Real Estate Fund (a)		4,102,802		29,950,451
International 17.5%
Laudus International MarketMasters Fund, Select Shares (a)		3,028,164		72,675,936
Laudus Mondrian Emerging Markets Fund, Institutional Shares (a)		1,604,505		13,590,158
Schwab International Core Equity Fund (a)		4,948,750		49,932,889
				136,198,983
Large-Cap 44.1%
Dodge & Cox Stock Fund		49,029		8,888,973
Laudus U.S. Large Cap Growth Fund *(a)		4,919,700		85,701,177
Schwab Core Equity Fund (a)		4,087,686		93,689,767
Schwab Dividend Equity Fund (a)		2,474,988		42,248,046
Schwab S&P 500 Index Fund (a)		2,366,726		77,533,928
TCW Relative Value Large Cap Fund, Class I		1,548,094		35,482,311
				343,544,202
Small-Cap 8.6%
Laudus Small-Cap MarketMasters Fund, Select Shares (a)		1,219,533		23,110,156
Schwab Small-Cap Equity Fund (a)		2,030,407		43,877,086
				66,987,242
				576,680,878
Fixed-Income Funds 23.2%
Intermediate-Term Bond 20.4%
Metropolitan West Total Return Bond Fund, Class I		4,021,935		44,120,625
Natixis Loomis Sayles Investment Grade Bond Fund, Class Y Shares		2,543,946		29,993,122
Schwab Intermediate-Term Bond Fund (a)		943,351		9,716,511
Schwab Total Bond Market Fund (a)		7,209,285		69,353,317
Wells Fargo Advantage Core Bond Fund, Class I		467,889		6,035,767
				159,219,342
International Bond 0.9%
Laudus Mondrian International Government Fixed Income Fund *(a)		703,764		6,777,251
Short-Term Bond 1.9%
Schwab Short-Term Bond Market Fund (a)		1,574,737		14,676,553
				180,673,146
Total Other Investment Companies
(Cost $605,244,936)				757,354,024
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investments 2.4% of net assets
Time Deposits 2.4%
Australia & New Zealand Banking Group Ltd.
0.03%, 05/01/15		7,857,470		7,857,470
DNB
0.03%, 05/01/15		3,090,103		3,090,103
JPMorgan Chase Bank
0.03%, 05/01/15		7,857,470		7,857,470
				18,805,043
Total Short-Term Investments
(Cost $18,805,043)				18,805,043
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $628,153,066 and the unrealized appreciation and depreciation were $150,318,628 and ($2,312,627), respectively, with a net unrealized appreciation of $148,006,001.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.

44 See financial notes

 Schwab Target 2030 Fund

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Other Investment Companies1		$757,354,024		$—		$—		$757,354,024
Short-Term Investments1		—		18,805,043		—		18,805,043
Total		$757,354,024		$18,805,043		$—		$776,159,067

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 45

 Schwab Target 2030 Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated underlying funds, at value (cost $494,971,791)		$632,833,226
Investments in unaffiliated issuers, at value (cost $129,078,188)	+	143,325,841
Total investments, at value (cost $624,049,979)		776,159,067
Receivables:
Investments sold		5,880,000
Fund shares sold		724,645
Dividends		224,353
Due from investment adviser		3,005
Interest		16
Prepaid expenses	+	12,371
Total assets		783,003,457
Liabilities
Payables:
Investments bought		3,864,214
Fund shares redeemed		230,092
Accrued expenses	+	40,768
Total liabilities		4,135,074
Net Assets
Total assets		783,003,457
Total liabilities	−	4,135,074
Net assets		$778,868,383
Net Assets by Source
Capital received from investors		586,279,759
Distributions in excess of net investment income		(4,285,243	)
Net realized capital gains		44,764,779
Net unrealized capital appreciation		152,109,088
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$778,868,383		49,182,027			$15.84

46 See financial notes

 Schwab Target 2030 Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated underlying funds		$7,055,454
Dividends received from unaffiliated underlying funds		1,152,464
Interest	+	3,004
Total investment income		8,210,922
Expenses
Shareholder reports		21,333
Professional fees		18,717
Registration fees		14,822
Portfolio accounting fees		14,808
Transfer agent fees		14,729
Custodian fees		7,546
Independent trustees’ fees		4,779
Other expenses	+	7,912
Total expenses		104,646
Expense reduction by CSIM	−	104,646
Net expenses	−	—
Net investment income		8,210,922
Realized and Unrealized Gains (Losses)
Realized capital gain distributions received from affiliated underlying funds		41,184,309
Realized capital gain distributions received from unaffiliated underlying funds		424,590
Net realized gains on sales of affiliated underlying funds		4,800,002
Net realized gains on sales of unaffiliated underlying funds	+	2,368,389
Net realized gains		48,777,290
Net change in unrealized appreciation (depreciation) on affiliated underlying funds		(25,460,999	)
Net change in unrealized appreciation (depreciation) on unaffiliated underlying funds	+	(1,566,782	)
Net change in unrealized appreciation (depreciation)	+	(27,027,781	)
Net realized and unrealized gains		21,749,509
Increase in net assets resulting from operations		$29,960,431

See financial notes 47

 Schwab Target 2030 Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$8,210,922			$9,372,784
Net realized gains		48,777,290			40,589,920
Net change in unrealized appreciation (depreciation)	+	(27,027,781	)		8,954,942
Increase in net assets from operations		29,960,431			58,917,646
Distributions to Shareholders
Distributions from net investment income		(16,692,788	)		(10,903,512	)
Distributions from net realized gains	+	(9,243,382	)		—
Total distributions		($25,936,170	)		($10,903,512	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			5,851,146		$91,829,324			8,997,016		$136,481,276
Shares reinvested			1,631,332		25,204,083			710,161		10,588,500
Shares redeemed	+		(4,415,203	)	(69,569,045	)		(5,865,191	)	(89,178,074	)
Net transactions in fund shares			3,067,275		$47,464,362			3,841,986		$57,891,702
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			46,114,752		$727,379,760			42,272,766		$621,473,924
Total increase	+		3,067,275		51,488,623			3,841,986		105,905,836
End of period			49,182,027		$778,868,383			46,114,752		$727,379,760
Distributions in excess of net investment income/Net investment income not yet distributed					($4,285,243	)				$4,196,623

48 See financial notes

Schwab Target 2035 Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		15.23			14.12			11.69			10.70			10.32			9.00
Income (loss) from investment operations:
Net investment income (loss)		0.16	1		0.20			0.20			0.16			0.16			0.13
Net realized and unrealized gains (losses)		0.47			1.15			2.45			0.99			0.38			1.33
Total from investment operations		0.63			1.35			2.65			1.15			0.54			1.46
Less distributions:
Distributions from net investment income		(0.35	)		(0.24	)		(0.22	)		(0.16	)		(0.16	)		(0.14	)
Distributions from net realized gains		(0.54	)		—			—			—			—			—
Total distributions		(0.89	)		(0.24	)		(0.22	)		(0.16	)		(0.16	)		(0.14	)
Net asset value at end of period		14.97			15.23			14.12			11.69			10.70			10.32
Total return (%)		4.31	2		9.62			23.02			10.89			5.27			16.29
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses3		—	4		—			—			—			—			0.00	5
Gross operating expenses3		0.05	4		0.07			0.09			0.13			0.17			0.30
Net investment income (loss)		2.19	4		1.28			1.42			1.45			1.41			1.38
Portfolio turnover rate		9	2		24			5			11			4			14
Net assets, end of period ($ x 1,000,000)		326			282			204			111			77			49

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ The expenses incurred by underlying funds in which the fund invests are not included in this ratio.

⁴ Annualized.

⁵ Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.

See financial notes 49

 Schwab Target 2035 Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	97	.6%	Other Investment Companies		274,786,998		318,000,580
	2	.1%	Short-Term Investments		6,954,263		6,954,263
	99	.7%	Total Investments		281,741,261		324,954,843
	0	.3%	Other Assets and Liabilities, Net				1,022,408
	100	.0%	Net Assets				325,977,251

	Number		Value
Security	of Shares		($)
Other Investment Companies 97.6% of net assets
Equity Funds 80.9%
Global Real Estate 4.2%
Schwab Global Real Estate Fund (a)		1,858,546		13,567,387
International 19.4%
Laudus International MarketMasters Fund, Select Shares (a)		1,380,260		33,126,232
Laudus Mondrian Emerging Markets Fund, Institutional Shares (a)		880,265		7,455,841
Schwab International Core Equity Fund (a)		2,250,961		22,712,193
				63,294,266
Large-Cap 47.4%
Dodge & Cox Stock Fund		22,949		4,160,710
Laudus U.S. Large Cap Growth Fund *(a)		2,206,612		38,439,184
Schwab Core Equity Fund (a)		1,834,021		42,035,768
Schwab Dividend Equity Fund (a)		1,112,954		18,998,118
Schwab S&P 500 Index Fund (a)		1,063,185		34,829,933
TCW Relative Value Large Cap Fund, Class I		694,030		15,907,163
				154,370,876
Small-Cap 9.9%
Laudus Small-Cap MarketMasters Fund, Select Shares (a)		591,422		11,207,440
Schwab Small-Cap Equity Fund (a)		981,150		21,202,647
				32,410,087
				263,642,616
Fixed-Income Funds 16.7%
Intermediate-Term Bond 15.1%
Metropolitan West Total Return Bond Fund, Class I		1,210,014		13,273,849
Natixis Loomis Sayles Investment Grade Bond Fund, Class Y Shares		940,711		11,090,985
Schwab Intermediate-Term Bond Fund (a)		371,132		3,822,656
Schwab Total Bond Market Fund (a)		2,039,831		19,623,177
Wells Fargo Advantage Core Bond Fund, Class I		111,514		1,438,525
				49,249,192
International Bond 0.6%
Laudus Mondrian International Government Fixed Income Fund *(a)		198,454		1,911,116
Short-Term Bond 1.0%
Schwab Short-Term Bond Market Fund (a)		343,096		3,197,656
				54,357,964
Total Other Investment Companies
(Cost $274,786,998)				318,000,580
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investments 2.1% of net assets
Time Deposits 2.1%
Australia & New Zealand Banking Group Ltd.
0.03%, 05/01/15		3,283,569		3,283,569
DNB
0.03%, 05/01/15		3,283,569		3,283,569
Sumitomo Mitsui Banking Corp.
0.03%, 05/01/15		387,125		387,125
				6,954,263
Total Short-Term Investments
(Cost $6,954,263)				6,954,263
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $282,699,927 and the unrealized appreciation and depreciation were $42,950,428 and ($695,512), respectively, with a net unrealized appreciation of $42,254,916.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.

50 See financial notes

 Schwab Target 2035 Fund

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Other Investment Companies1		$318,000,580		$—		$—		$318,000,580
Short-Term Investments1		—		6,954,263		—		6,954,263
Total		$318,000,580		$6,954,263		$—		$324,954,843

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 51

 Schwab Target 2035 Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated underlying funds, at value (cost $234,411,375)		$272,129,348
Investments in unaffiliated issuers, at value (cost $47,329,886)	+	52,825,495
Total investments, at value (cost $281,741,261)		324,954,843
Receivables:
Investments sold		1,090,000
Fund shares sold		1,027,650
Dividends		63,667
Due from investment adviser		2,332
Prepaid expenses	+	1,448
Total assets		327,139,940
Liabilities
Payables:
Investments bought		923,645
Fund shares redeemed		220,413
Accrued expenses	+	18,631
Total liabilities		1,162,689
Net Assets
Total assets		327,139,940
Total liabilities	−	1,162,689
Net assets		$325,977,251
Net Assets by Source
Capital received from investors		266,916,051
Distributions in excess of net investment income		(2,043,363	)
Net realized capital gains		17,890,981
Net unrealized capital appreciation		43,213,582
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$325,977,251		21,775,673			$14.97

52 See financial notes

 Schwab Target 2035 Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated underlying funds		$2,859,837
Dividends received from unaffiliated underlying funds		409,966
Interest	+	1,018
Total investment income		3,270,821
Expenses
Professional fees		16,488
Transfer agent fees		13,434
Registration fees		13,037
Shareholder reports		11,647
Portfolio accounting fees		10,548
Custodian fees		4,569
Independent trustees’ fees		3,772
Other expenses	+	2,535
Total expenses		76,030
Expense reduction by CSIM	−	76,030
Net expenses	−	—
Net investment income		3,270,821
Realized and Unrealized Gains (Losses)
Realized capital gain distributions received from affiliated underlying funds		17,533,938
Realized capital gain distributions received from unaffiliated underlying funds		161,378
Net realized gains on sales of affiliated underlying funds		1,116,012
Net realized gains on sales of unaffiliated underlying funds	+	23,456
Net realized gains		18,834,784
Net change in unrealized appreciation (depreciation) on affiliated underlying funds		(9,875,273	)
Net change in unrealized appreciation (depreciation) on unaffiliated underlying funds	+	333,400
Net change in unrealized appreciation (depreciation)	+	(9,541,873	)
Net realized and unrealized gains		9,292,911
Increase in net assets resulting from operations		$12,563,732

See financial notes 53

 Schwab Target 2035 Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$3,270,821			$3,136,030
Net realized gains		18,834,784			11,661,536
Net change in unrealized appreciation (depreciation)	+	(9,541,873	)		7,420,048
Increase in net assets from operations		12,563,732			22,217,614
Distributions to Shareholders
Distributions from net investment income		(6,621,678	)		(3,570,560	)
Distributions from net realized gains	+	(10,314,099	)		—
Total distributions		($16,935,777	)		($3,570,560	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			3,798,647		$56,593,736			6,032,360		$88,289,647
Shares reinvested			1,133,588		16,527,714			242,410		3,485,859
Shares redeemed	+		(1,655,551	)	(24,571,906	)		(2,250,360	)	(32,933,604	)
Net transactions in fund shares			3,276,684		$48,549,544			4,024,410		$58,841,902
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			18,498,989		$281,799,752			14,474,579		$204,310,796
Total increase	+		3,276,684		44,177,499			4,024,410		77,488,956
End of period			21,775,673		$325,977,251			18,498,989		$281,799,752
Distributions in excess of net investment income/Net investment income not yet distributed					($2,043,363	)				$1,307,494

54 See financial notes

Schwab Target 2040 Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		16.77			15.49			12.67			11.55			11.16			9.71
Income (loss) from investment operations:
Net investment income (loss)		0.18	1		0.21			0.22			0.17			0.17			0.15
Net realized and unrealized gains (losses)		0.56			1.33			2.84			1.12			0.40			1.46
Total from investment operations		0.74			1.54			3.06			1.29			0.57			1.61
Less distributions:
Distributions from net investment income		(0.39	)		(0.26	)		(0.24	)		(0.17	)		(0.18	)		(0.16	)
Distributions from net realized gains		(0.37	)		—			—			—			—			—
Total distributions		(0.76	)		(0.26	)		(0.24	)		(0.17	)		(0.18	)		(0.16	)
Net asset value at end of period		16.75			16.77			15.49			12.67			11.55			11.16
Total return (%)		4.54	2		10.07			24.55			11.33			5.08			16.71
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses3		—	4		—			—			—			—			0.00	5
Gross operating expenses3		0.03	4		0.04			0.04			0.06			0.06			0.10
Net investment income (loss)		2.23	4		1.26			1.47			1.42			1.42			1.44
Portfolio turnover rate		7	2		23			6			12			3			15
Net assets, end of period ($ x 1,000,000)		829			768			639			435			342			259

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ The expenses incurred by underlying funds in which the fund invests are not included in this ratio.

⁴ Annualized.

⁵ Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.

See financial notes 55

 Schwab Target 2040 Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	97	.9%	Other Investment Companies		639,233,095		811,215,230
	1	.9%	Short-Term Investments		15,718,829		15,718,829
	99	.8%	Total Investments		654,951,924		826,934,059
	0	.2%	Other Assets and Liabilities, Net				1,625,607
	100	.0%	Net Assets				828,559,666

	Number		Value
Security	of Shares		($)
Other Investment Companies 97.9% of net assets
Equity Funds 87.4%
Global Real Estate 4.5%
Schwab Global Real Estate Fund (a)		5,143,985		37,551,087
International 21.3%
Laudus International MarketMasters Fund, Select Shares (a)		3,778,497		90,683,932
Laudus Mondrian Emerging Markets Fund, Institutional Shares (a)		2,811,537		23,813,716
Schwab International Core Equity Fund (a)		6,152,148		62,075,178
				176,572,826
Large-Cap 50.3%
Dodge & Cox Stock Fund		60,923		11,045,309
Laudus U.S. Large Cap Growth Fund *(a)		5,965,906		103,926,080
Schwab Core Equity Fund (a)		4,962,361		113,737,313
Schwab Dividend Equity Fund (a)		3,007,898		51,344,825
Schwab S&P 500 Index Fund (a)		2,870,359		94,032,970
TCW Relative Value Large Cap Fund, Class I		1,864,921		42,743,997
				416,830,494
Small-Cap 11.3%
Laudus Small-Cap MarketMasters Fund, Select Shares (a)		1,707,321		32,353,738
Schwab Small-Cap Equity Fund (a)		2,827,560		61,103,581
				93,457,319
				724,411,726
Fixed-Income Funds 10.5%
Intermediate-Term Bond 9.8%
Metropolitan West Total Return Bond Fund, Class I		1,890,129		20,734,721
Natixis Loomis Sayles Investment Grade Bond Fund, Class Y Shares		1,833,805		21,620,566
Schwab Intermediate-Term Bond Fund (a)		753,918		7,765,355
Schwab Total Bond Market Fund (a)		3,029,641		29,145,150
Wells Fargo Advantage Core Bond Fund, Class I		113,853		1,468,703
				80,734,495
International Bond 0.3%
Laudus Mondrian International Government Fixed Income Fund *(a)		280,423		2,700,472
Short-Term Bond 0.4%
Schwab Short-Term Bond Market Fund (a)		361,431		3,368,537
				86,803,504
Total Other Investment Companies
(Cost $639,233,095)				811,215,230
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investments 1.9% of net assets
Time Deposits 1.9%
Australia & New Zealand Banking Group Ltd.
0.03%, 05/01/15		7,347,778		7,347,778
JPMorgan Chase Bank
0.03%, 05/01/15		8,371,051		8,371,051
				15,718,829
Total Short-Term Investments
(Cost $15,718,829)				15,718,829
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $659,374,279 and the unrealized appreciation and depreciation were $168,643,345 and ($1,083,565), respectively, with a net unrealized appreciation of $167,559,780.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.

56 See financial notes

 Schwab Target 2040 Fund

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Other Investment Companies1		$811,215,230		$—		$—		$811,215,230
Short-Term Investments1		—		15,718,829		—		15,718,829
Total		$811,215,230		$15,718,829		$—		$826,934,059

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 57

 Schwab Target 2040 Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated underlying funds, at value (cost $558,992,729)		$713,601,934
Investments in unaffiliated issuers, at value (cost $95,959,195)	+	113,332,125
Total investments, at value (cost $654,951,924)		826,934,059
Receivables:
Investments sold		4,710,000
Fund shares sold		791,750
Dividends		98,368
Due from investment adviser		3,524
Interest		13
Prepaid expenses	+	14,644
Total assets		832,552,358
Liabilities
Payables:
Investments bought		3,398,443
Fund shares redeemed		539,092
Accrued expenses	+	55,157
Total liabilities		3,992,692
Net Assets
Total assets		832,552,358
Total liabilities	−	3,992,692
Net assets		$828,559,666
Net Assets by Source
Capital received from investors		609,747,538
Distributions in excess of net investment income		(6,124,507	)
Net realized capital gains		52,954,500
Net unrealized capital appreciation		171,982,135
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$828,559,666		49,455,985			$16.75

58 See financial notes

 Schwab Target 2040 Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated underlying funds		$7,845,529
Dividends received from unaffiliated underlying funds		981,577
Interest	+	2,474
Total investment income		8,829,580
Expenses
Shareholder reports		34,057
Transfer agent fees		18,689
Professional fees		18,646
Registration fees		16,085
Portfolio accounting fees		15,213
Custodian fees		7,972
Independent trustees’ fees		4,870
Other expenses	+	7,850
Total expenses		123,382
Expense reduction by CSIM	−	123,382
Net expenses	−	—
Net investment income		8,829,580
Realized and Unrealized Gains (Losses)
Realized capital gain distributions received from affiliated underlying funds		50,338,481
Realized capital gain distributions received from unaffiliated underlying funds		380,969
Net realized gains on sales of affiliated underlying funds		4,145,565
Net realized gains on sales of unaffiliated underlying funds	+	2,426,481
Net realized gains		57,291,496
Net change in unrealized appreciation (depreciation) on affiliated underlying funds		(29,436,549	)
Net change in unrealized appreciation (depreciation) on unaffiliated underlying funds	+	(1,110,702	)
Net change in unrealized appreciation (depreciation)	+	(30,547,251	)
Net realized and unrealized gains		26,744,245
Increase in net assets resulting from operations		$35,573,825

See financial notes 59

 Schwab Target 2040 Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$8,829,580			$8,930,035
Net realized gains		57,291,496			42,520,112
Net change in unrealized appreciation (depreciation)	+	(30,547,251	)		16,163,418
Increase in net assets from operations		35,573,825			67,613,565
Distributions to Shareholders
Distributions from net investment income		(18,123,716	)		(11,083,321	)
Distributions from net realized gains	+	(16,937,962	)		—
Total distributions		($35,061,678	)		($11,083,321	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			5,102,635		$84,550,181			9,715,793		$156,225,134
Shares reinvested			2,105,777		34,303,111			684,108		10,822,584
Shares redeemed	+		(3,564,465	)	(59,280,202	)		(5,866,001	)	(94,545,374	)
Net transactions in fund shares			3,643,947		$59,573,090			4,533,900		$72,502,344
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			45,812,038		$768,474,429			41,278,138		$639,441,841
Total increase	+		3,643,947		60,085,237			4,533,900		129,032,588
End of period			49,455,985		$828,559,666			45,812,038		$768,474,429
Distributions in excess of net investment income/Net investment income not yet distributed					($6,124,507	)				$3,169,629

60 See financial notes

Schwab Target 2045 Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			1/23/131–
	4/30/15*			10/31/14			10/31/13
Per-Share Data ($)
Net asset value at beginning of period		12.67			11.66			10.00
Income (loss) from investment operations:
Net investment income (loss)		0.13	2		0.16			0.02
Net realized and unrealized gains (losses)		0.43			1.03			1.64
Total from investment operations		0.56			1.19			1.66
Less distributions:
Distributions from net investment income		(0.29	)		(0.18	)		—
Distributions from net realized gains		(0.16	)		—			—
Total distributions		(0.45	)		(0.18	)		—
Net asset value at end of period		12.78			12.67			11.66
Total return (%)		4.58	3		10.30			16.60	3
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses4		—	5		—			0.00	5,6
Gross operating expenses4		0.21	5		0.32			1.08	5
Net investment income (loss)		2.12	5		1.03			0.46	5
Portfolio turnover rate		4	3		23			39	3
Net assets, end of period ($ x 1,000,000)		57			41			18

* Unaudited.

¹ Commencement of operations.

² Calculated based on the average shares outstanding during the period.

³ Not annualized.

⁴ The expenses incurred by underlying funds in which the fund invests are not included in this ratio.

⁵ Annualized.

⁶ Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if interest expense had not been incurred.

See financial notes 61

 Schwab Target 2045 Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	97	.8%	Other Investment Companies		53,978,775		55,902,445
	2	.0%	Short-Term Investments		1,136,277		1,136,277
	99	.8%	Total Investments		55,115,052		57,038,722
	0	.2%	Other Assets and Liabilities, Net				115,496
	100	.0%	Net Assets				57,154,218

	Number		Value
Security	of Shares		($)
Other Investment Companies 97.8% of net assets
Equity Funds 90.9%
Global Real Estate 4.7%
Schwab Global Real Estate Fund (a)		366,879		2,678,220
International 22.3%
Laudus International MarketMasters Fund, Select Shares (a)		270,043		6,481,035
Laudus Mondrian Emerging Markets Fund, Institutional Shares (a)		218,015		1,846,582
Schwab International Core Equity Fund (a)		439,672		4,436,290
				12,763,907
Large-Cap 51.8%
Dodge & Cox Stock Fund		4,262		772,625
Laudus U.S. Large Cap Growth Fund *(a)		422,415		7,358,464
Schwab Core Equity Fund (a)		353,245		8,096,373
Schwab Dividend Equity Fund (a)		214,380		3,659,475
Schwab S&P 500 Index Fund (a)		204,118		6,686,917
TCW Relative Value Large Cap Fund, Class I		132,397		3,034,546
				29,608,400
Small-Cap 12.1%
Laudus Small-Cap MarketMasters Fund, Select Shares (a)		125,795		2,383,819
Schwab Small-Cap Equity Fund (a)		208,051		4,495,966
				6,879,785
				51,930,312
Fixed-Income Funds 6.9%
Intermediate-Term Bond 6.6%
Metropolitan West Total Return Bond Fund, Class I		84,724		929,426
Natixis Loomis Sayles Investment Grade Bond Fund, Class Y Shares		96,125		1,133,316
Schwab Intermediate-Term Bond Fund (a)		34,626		356,645
Schwab Total Bond Market Fund (a)		132,811		1,277,640
Wells Fargo Advantage Core Bond Fund, Class I		7,013		90,463
				3,787,490
International Bond 0.1%
Laudus Mondrian International Government Fixed Income Fund *(a)		9,052		87,169
Short-Term Bond 0.2%
Schwab Short-Term Bond Market Fund (a)		10,458		97,474
				3,972,133
Total Other Investment Companies
(Cost $53,978,775)				55,902,445
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investments 2.0% of net assets
Time Deposits 2.0%
Australia & New Zealand Banking Group Ltd.
0.03%, 05/01/15		576,756		576,756
DNB
0.03%, 05/01/15		559,521		559,521
				1,136,277
Total Short-Term Investments
(Cost $1,136,277)				1,136,277
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $55,182,877 and the unrealized appreciation and depreciation were $2,216,360 and ($360,515), respectively, with a net unrealized appreciation of $1,855,845.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.

62 See financial notes

 Schwab Target 2045 Fund

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Other Investment Companies1		$55,902,445		$—		$—		$55,902,445
Short-Term Investments1		—		1,136,277		—		1,136,277
Total		$55,902,445		$1,136,277		$—		$57,038,722

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 63

 Schwab Target 2045 Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated underlying funds, at value (cost $48,438,867)		$49,942,069
Investments in unaffiliated issuers, at value (cost $6,676,185)	+	7,096,653
Total investments, at value (cost $55,115,052)		57,038,722
Receivables:
Investments sold		126,000
Fund shares sold		125,297
Dividends		4,122
Due from investment adviser		1,638
Prepaid expenses	+	24
Total assets		57,295,803
Liabilities
Payables:
Investments bought		131,263
Fund shares redeemed		3,555
Accrued expenses	+	6,767
Total liabilities		141,585
Net Assets
Total assets		57,295,803
Total liabilities	−	141,585
Net assets		$57,154,218
Net Assets by Source
Capital received from investors		52,742,195
Distributions in excess of net investment income		(405,623	)
Net realized capital gains		2,893,976
Net unrealized capital appreciation		1,923,670
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$57,154,218		4,470,437			$12.78

64 See financial notes

 Schwab Target 2045 Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated underlying funds		$456,624
Dividends received from unaffiliated underlying funds		51,343
Interest	+	143
Total investment income		508,110
Expenses
Professional fees		15,575
Transfer agent fees		10,742
Registration fees		9,703
Shareholder reports		3,958
Portfolio accounting fees		3,705
Custodian fees		3,309
Independent trustees’ fees		3,225
Other expenses	+	578
Total expenses		50,795
Expense reduction by CSIM	−	50,795
Net expenses	−	—
Net investment income		508,110
Realized and Unrealized Gains (Losses)
Realized capital gain distributions received from affiliated underlying funds		2,945,019
Realized capital gain distributions received from unaffiliated underlying funds		22,249
Net realized losses on sales of affiliated underlying funds		(21,488	)
Net realized losses on sales of unaffiliated underlying funds	+	(17,016	)
Net realized gains		2,928,764
Net change in unrealized appreciation (depreciation) on affiliated underlying funds		(1,342,174	)
Net change in unrealized appreciation (depreciation) on unaffiliated underlying funds	+	92,293
Net change in unrealized appreciation (depreciation)	+	(1,249,881	)
Net realized and unrealized gains		1,678,883
Increase in net assets resulting from operations		$2,186,993

See financial notes 65

 Schwab Target 2045 Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$508,110			$300,417
Net realized gains		2,928,764			670,918
Net change in unrealized appreciation (depreciation)	+	(1,249,881	)		1,758,596
Increase in net assets from operations		2,186,993			2,729,931
Distributions to Shareholders
Distributions from net investment income		(1,032,882	)		(312,358	)
Distributions from net realized gains	+	(569,067	)		—
Total distributions		($1,601,949	)		($312,358	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			1,418,581		$17,920,754			2,059,069		$25,057,061
Shares reinvested			125,756		1,561,897			25,653		306,297
Shares redeemed	+		(310,097	)	(3,914,958	)		(359,691	)	(4,402,377	)
Net transactions in fund shares			1,234,240		$15,567,693			1,725,031		$20,960,981
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			3,236,197		$41,001,481			1,511,166		$17,622,927
Total increase	+		1,234,240		16,152,737			1,725,031		23,378,554
End of period			4,470,437		$57,154,218			3,236,197		$41,001,481
Distributions in excess of net investment income/Net investment income not yet distributed					($405,623	)				$119,149

66 See financial notes

Schwab Target 2050 Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			1/23/131–
	4/30/15*			10/31/14			10/31/13
Per-Share Data ($)
Net asset value at beginning of period		12.75			11.72			10.00
Income (loss) from investment operations:
Net investment income (loss)		0.13	2		0.17			0.02
Net realized and unrealized gains (losses)		0.47			1.04			1.70
Total from investment operations		0.60			1.21			1.72
Less distributions:
Distributions from net investment income		(0.30	)		(0.18	)		—
Distributions from net realized gains		(0.16	)		—			—
Total distributions		(0.46	)		(0.18	)		—
Net asset value at end of period		12.89			12.75			11.72
Total return (%)		4.79	3		10.43			17.20	3
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses4		—	5		—			0.00	5,6
Gross operating expenses4		0.26	5		0.39			1.37	5
Net investment income (loss)		2.10	5		0.99			0.40	5
Portfolio turnover rate		3	3		23			40	3
Net assets, end of period ($ x 1,000,000)		47			33			14

* Unaudited.

¹ Commencement of operations.

² Calculated based on the average shares outstanding during the period.

³ Not annualized.

⁴ The expenses incurred by underlying funds in which the fund invests are not included in this ratio.

⁵ Annualized.

⁶ Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if interest expense had not been incurred.

See financial notes 67

 Schwab Target 2050 Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	97	.9%	Other Investment Companies		44,073,360		45,694,476
	2	.0%	Short-Term Investments		942,452		942,452
	99	.9%	Total Investments		45,015,812		46,636,928
	0	.1%	Other Assets and Liabilities, Net				53,258
	100	.0%	Net Assets				46,690,186

	Number		Value
Security	of Shares		($)
Other Investment Companies 97.9% of net assets
Equity Funds 93.4%
Global Real Estate 4.8%
Schwab Global Real Estate Fund (a)		307,684		2,246,095
International 23.1%
Laudus International MarketMasters Fund, Select Shares (a)		226,936		5,446,474
Laudus Mondrian Emerging Markets Fund, Institutional Shares (a)		192,399		1,629,619
Schwab International Core Equity Fund (a)		367,961		3,712,731
				10,788,824
Large-Cap 52.9%
Dodge & Cox Stock Fund		3,649		661,574
Laudus U.S. Large Cap Growth Fund *(a)		353,822		6,163,582
Schwab Core Equity Fund (a)		293,978		6,737,969
Schwab Dividend Equity Fund (a)		178,267		3,043,014
Schwab S&P 500 Index Fund (a)		169,413		5,549,955
TCW Relative Value Large Cap Fund, Class I		110,362		2,529,501
				24,685,595
Small-Cap 12.6%
Laudus Small-Cap MarketMasters Fund, Select Shares (a)		107,518		2,037,457
Schwab Small-Cap Equity Fund (a)		177,551		3,836,875
				5,874,332
				43,594,846
Fixed-Income Funds 4.5%
Intermediate-Term Bond 4.3%
Metropolitan West Total Return Bond Fund, Class I		42,137		462,246
Natixis Loomis Sayles Investment Grade Bond Fund, Class Y Shares		60,583		714,276
Schwab Intermediate-Term Bond Fund (a)		17,384		179,053
Schwab Total Bond Market Fund (a)		62,801		604,144
Wells Fargo Advantage Core Bond Fund, Class I		4,277		55,176
				2,014,895
International Bond 0.1%
Laudus Mondrian International Government Fixed Income Fund *(a)		5,991		57,692
Short-Term Bond 0.1%
Schwab Short-Term Bond Market Fund (a)		2,902		27,043
				2,099,630
Total Other Investment Companies
(Cost $44,073,360)				45,694,476
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investments 2.0% of net assets
Time Deposits 2.0%
Australia & New Zealand Banking Group Ltd.
0.03%, 05/01/15		470,551		470,551
Brown Brothers Harriman
0.03%, 05/01/15		1,350		1,350
DNB
0.03%, 05/01/15		470,551		470,551
				942,452
Total Short-Term Investments
(Cost $942,452)				942,452
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $45,076,907 and the unrealized appreciation and depreciation were $1,836,440 and ($276,419), respectively, with a net unrealized appreciation of $1,560,021.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.

68 See financial notes

 Schwab Target 2050 Fund

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Other Investment Companies1		$45,694,476		$—		$—		$45,694,476
Short-Term Investments1		—		942,452		—		942,452
Total		$45,694,476		$942,452		$—		$46,636,928

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 69

 Schwab Target 2050 Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated underlying funds, at value (cost $40,000,485)		$41,271,703
Investments in unaffiliated issuers, at value (cost $5,015,327)	+	5,365,225
Total investments, at value (cost $45,015,812)		46,636,928
Receivables:
Investments sold		65,000
Fund shares sold		116,514
Dividends		1,988
Due from investment adviser	+	1,613
Total assets		46,822,043
Liabilities
Payables:
Investments bought		108,056
Fund shares redeemed		16,893
Accrued expenses	+	6,908
Total liabilities		131,857
Net Assets
Total assets		46,822,043
Total liabilities	−	131,857
Net assets		$46,690,186
Net Assets by Source
Capital received from investors		43,034,048
Distributions in excess of net investment income		(339,254	)
Net realized capital gains		2,374,276
Net unrealized capital appreciation		1,621,116
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$46,690,186		3,623,120			$12.89

70 See financial notes

 Schwab Target 2050 Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated underlying funds		$372,112
Dividends received from unaffiliated underlying funds		35,757
Interest	+	115
Total investment income		407,984
Expenses
Professional fees		15,550
Transfer agent fees		10,860
Registration fees		9,282
Shareholder reports		4,075
Portfolio accounting fees		3,619
Custodian fees		3,260
Independent trustees’ fees		3,206
Other expenses	+	524
Total expenses		50,376
Expense reduction by CSIM	−	50,376
Net expenses	−	—
Net investment income		407,984
Realized and Unrealized Gains (Losses)
Realized capital gain distributions received from affiliated underlying funds		2,417,658
Realized capital gain distributions received from unaffiliated underlying funds		15,385
Net realized losses on sales of affiliated underlying funds		(17,777	)
Net realized losses on sales of unaffiliated underlying funds	+	(1,950	)
Net realized gains		2,413,316
Net change in unrealized appreciation (depreciation) on affiliated underlying funds		(1,060,765	)
Net change in unrealized appreciation (depreciation) on unaffiliated underlying funds	+	78,670
Net change in unrealized appreciation (depreciation)	+	(982,095	)
Net realized and unrealized gains		1,431,221
Increase in net assets resulting from operations		$1,839,205

See financial notes 71

 Schwab Target 2050 Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$407,984			$228,395
Net realized gains		2,413,316			525,789
Net change in unrealized appreciation (depreciation)	+	(982,095	)		1,454,604
Increase in net assets from operations		1,839,205			2,208,788
Distributions to Shareholders
Distributions from net investment income		(830,660	)		(246,172	)
Distributions from net realized gains	+	(451,787	)		—
Total distributions		($1,282,447	)		($246,172	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			1,155,767		$14,691,474			1,761,233		$21,571,597
Shares reinvested			100,456		1,256,702			20,179		242,557
Shares redeemed	+		(259,030	)	(3,306,825	)		(348,673	)	(4,264,424	)
Net transactions in fund shares			997,193		$12,641,351			1,432,739		$17,549,730
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			2,625,927		$33,492,077			1,193,188		$13,979,731
Total increase	+		997,193		13,198,109			1,432,739		19,512,346
End of period			3,623,120		$46,690,186			2,625,927		$33,492,077
Distributions in excess of net investment income/Net investment income not yet distributed					($339,254	)				$83,422

72 See financial notes

Schwab Target 2055 Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			1/23/131–
	4/30/15*			10/31/14			10/31/13
Per-Share Data ($)
Net asset value at beginning of period		12.79			11.74			10.00
Income (loss) from investment operations:
Net investment income (loss)		0.13	2		0.16			0.02
Net realized and unrealized gains (losses)		0.47			1.07			1.72
Total from investment operations		0.60			1.23			1.74
Less distributions:
Distributions from net investment income		(0.30	)		(0.18	)		—
Distributions from net realized gains		(0.16	)		—			—
Total distributions		(0.46	)		(0.18	)		—
Net asset value at end of period		12.93			12.79			11.74
Total return (%)		4.79	3		10.59			17.40	3
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses4		—	5		—			0.00	5,6
Gross operating expenses4		0.46	5		0.68			2.78	5
Net investment income (loss)		2.11	5		0.94			0.34	5
Portfolio turnover rate		3	3		29			12	3
Net assets, end of period ($ x 1,000,000)		24			18			7

* Unaudited.

¹ Commencement of operations.

² Calculated based on the average shares outstanding during the period.

³ Not annualized.

⁴ The expenses incurred by underlying funds in which the fund invests are not included in this ratio.

⁵ Annualized.

⁶ Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if interest expense had not been incurred.

See financial notes 73

 Schwab Target 2055 Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	98	.5%	Other Investment Companies		23,214,028		24,080,767
	2	.1%	Short-Term Investments		512,377		512,377
	100	.6%	Total Investments		23,726,405		24,593,144
	(0	.6%)	Other Assets and Liabilities, Net				(139,250	)
	100	.0%	Net Assets				24,453,894

	Number		Value
Security	of Shares		($)
Other Investment Companies 98.5% of net assets
Equity Funds 96.5%
Global Real Estate 5.0%
Schwab Global Real Estate Fund (a)		166,417		1,214,844
International 24.0%
Laudus International MarketMasters Fund, Select Shares (a)		122,156		2,931,738
Laudus Mondrian Emerging Markets Fund, Institutional Shares (a)		109,684		929,026
Schwab International Core Equity Fund (a)		199,028		2,008,194
				5,868,958
Large-Cap 54.3%
Dodge & Cox Stock Fund		1,908		345,862
Laudus U.S. Large Cap Growth Fund *(a)		190,279		3,314,655
Schwab Core Equity Fund (a)		157,789		3,616,516
Schwab Dividend Equity Fund (a)		95,853		1,636,207
Schwab S&P 500 Index Fund (a)		91,373		2,993,394
TCW Relative Value Large Cap Fund, Class I		59,327		1,359,771
				13,266,405
Small-Cap 13.2%
Laudus Small-Cap MarketMasters Fund, Select Shares (a)		59,232		1,122,450
Schwab Small-Cap Equity Fund (a)		97,735		2,112,052
				3,234,502
				23,584,709
Fixed-Income Funds 2.0%
Intermediate-Term Bond 1.9%
Metropolitan West Total Return Bond Fund, Class I		9,160		100,487
Natixis Loomis Sayles Investment Grade Bond Fund, Class Y Shares		19,146		225,725
Schwab Intermediate-Term Bond Fund (a)		3,143		32,371
Schwab Total Bond Market Fund (a)		11,227		108,004
Wells Fargo Advantage Core Bond Fund, Class I		858		11,066
				477,653
International Bond 0.1%
Laudus Mondrian International Government Fixed Income Fund *(a)		1,911		18,405
				496,058
Total Other Investment Companies
(Cost $23,214,028)				24,080,767
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investments 2.1% of net assets
Time Deposits 2.1%
Australia & New Zealand Banking Group Ltd.
0.03%, 05/01/15		248,395		248,395
Brown Brothers Harriman
0.03%, 05/01/15		15,587		15,587
JPMorgan Chase Bank
0.03%, 05/01/15		248,395		248,395
				512,377
Total Short-Term Investments
(Cost $512,377)				512,377
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $23,789,618 and the unrealized appreciation and depreciation were $953,290 and ($149,764), respectively, with a net unrealized appreciation of $803,526.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.

74 See financial notes

 Schwab Target 2055 Fund

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Other Investment Companies1		$24,080,767		$—		$—		$24,080,767
Short-Term Investments1		—		512,377		—		512,377
Total		$24,080,767		$512,377		$—		$24,593,144

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 75

 Schwab Target 2055 Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated underlying funds, at value (cost $21,363,175)		$22,037,856
Investments in unaffiliated issuers, at value (cost $2,363,230)	+	2,555,288
Total investments, at value (cost $23,726,405)		24,593,144
Receivables:
Investments sold		42,000
Fund shares sold		64,141
Due from investment adviser		1,537
Dividends	+	384
Total assets		24,701,206
Liabilities
Payables:
Investments bought		66,397
Fund shares redeemed		173,413
Accrued expenses	+	7,502
Total liabilities		247,312
Net Assets
Total assets		24,701,206
Total liabilities	−	247,312
Net assets		$24,453,894
Net Assets by Source
Capital received from investors		22,501,885
Distributions in excess of net investment income		(190,672	)
Net realized capital gains		1,275,942
Net unrealized capital appreciation		866,739
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$24,453,894		1,891,153			$12.93

76 See financial notes

 Schwab Target 2055 Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated underlying funds		$202,231
Dividends received from unaffiliated underlying funds		16,740
Interest	+	61
Total investment income		219,032
Expenses
Professional fees		15,509
Transfer agent fees		10,895
Registration fees		8,119
Shareholder reports		3,832
Portfolio accounting fees		3,468
Independent trustees’ fees		3,171
Custodian fees		2,771
Other expenses	+	433
Total expenses		48,198
Expense reduction by CSIM	−	48,198
Net expenses	−	—
Net investment income		219,032
Realized and Unrealized Gains (Losses)
Realized capital gain distributions received from affiliated underlying funds		1,328,948
Realized capital gain distributions received from unaffiliated underlying funds		7,484
Net realized losses on sales of affiliated underlying funds		(21,404	)
Net realized gains on sales of unaffiliated underlying funds	+	347
Net realized gains		1,315,375
Net change in unrealized appreciation (depreciation) on affiliated underlying funds		(582,179	)
Net change in unrealized appreciation (depreciation) on unaffiliated underlying funds	+	42,473
Net change in unrealized appreciation (depreciation)	+	(539,706	)
Net realized and unrealized gains		775,669
Increase in net assets resulting from operations		$994,701

See financial notes 77

 Schwab Target 2055 Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$219,032			$119,200
Net realized gains		1,315,375			255,531
Net change in unrealized appreciation (depreciation)	+	(539,706	)		827,347
Increase in net assets from operations		994,701			1,202,078
Distributions to Shareholders
Distributions from net investment income		(449,182	)		(131,185	)
Distributions from net realized gains	+	(247,620	)		—
Total distributions		($696,802	)		($131,185	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			668,416		$8,521,232			1,167,531		$14,320,677
Shares reinvested			53,831		675,575			10,605		127,787
Shares redeemed	+		(232,099	)	(2,960,731	)		(363,239	)	(4,481,218	)
Net transactions in fund shares			490,148		$6,236,076			814,897		$9,967,246
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			1,401,005		$17,919,919			586,108		$6,881,780
Total increase	+		490,148		6,533,975			814,897		11,038,139
End of period			1,891,153		$24,453,894			1,401,005		$17,919,919
Distributions in excess of net investment income/Net investment income not yet distributed					($190,672	)				$39,478

78 See financial notes

 Schwab Target Funds

Financial Notes, unaudited

1. Business Structure of the Funds:

Each of the funds in this report is a series of Schwab Capital Trust (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 Capital Trust (organized May 7, 1993)	Laudus International MarketMasters Fund
Schwab Target 2010 Fund	Schwab Balanced Fund
Schwab Target 2015 Fund	Schwab Core Equity Fund
Schwab Target 2020 Fund	Schwab Dividend Equity Fund
Schwab Target 2025 Fund	Schwab Large-Cap Growth Fund
Schwab Target 2030 Fund	Schwab Small-Cap Equity Fund
Schwab Target 2035 Fund	Schwab Hedged Equity Fund
Schwab Target 2040 Fund	Schwab Financial Services Fund
Schwab Target 2045 Fund	Schwab Health Care Fund
Schwab Target 2050 Fund	Schwab International Core Equity Fund
Schwab Target 2055 Fund	Schwab Fundamental US Large Company Index Fund
Schwab S&P 500 Index Fund	Schwab Fundamental US Small Company Index Fund
Schwab Small-Cap Index Fund	Schwab Fundamental International Large Company Index Fund
Schwab Total Stock Market Index Fund	Schwab Fundamental International Small Company Index Fund
Schwab International Index Fund	Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab MarketTrack All Equity Portfolio	Schwab Fundamental Global Real Estate Index Fund
Schwab MarketTrack Growth Portfolio	Schwab Monthly Income Fund - Moderate Payout
Schwab MarketTrack Balanced Portfolio	Schwab Monthly Income Fund - Enhanced Payout
Schwab MarketTrack Conservative Portfolio	Schwab Monthly Income Fund - Maximum Payout
Laudus Small-Cap MarketMasters Fund

The Schwab Target Funds are “fund of funds.” Each of the funds seeks to achieve its investment objective by investing in a combination of other Schwab and/or Laudus Funds and other unaffiliated, third-party mutual funds, in accordance with its target portfolio allocation. Each fund may also invest directly in equity and fixed-income securities, exchange-traded funds (“ETFs”), and cash equivalents, including money market securities.

Each fund in this report offers one share class. Shares are bought and sold (subject to a redemption fee, see financial note 8) 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 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 financial statements of the funds should be read in conjunction with the underlying funds’ financial statements. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed and available on the U.S. Securities and Exchange Commission’s (“SEC”) website at www.sec.gov or at the SEC’s Public Reference Room in Washington D.C.

(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 market value. Among other things, these procedures allow the funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

79

 Schwab Target Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:

•  Underlying funds: Mutual funds are valued at their respective NAVs.

•  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.

•  Short-term securities (60 days or less to maturity): A short-term security may be valued at its amortized cost when it approximates the security’s market value.

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. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

•  Level 3 — significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and 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

80 

 Schwab Target Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

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 April 30, 2015 are disclosed in the Portfolio Holdings.

(b) 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.

(c) Investment Income:

Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the day they learn of the ex-dividend date. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.

(d) Expenses:

Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to all funds within the trust generally are allocated among the funds in proportion to their average daily net assets. Each fund bears its share of the allocable expenses of the underlying funds in which it invests. Such expenses are reflected in the net asset values of the underlying funds.

(e) Distributions to Shareholders:

The funds make distributions from net investment income and net realized capital gains, if any, once a year.

(f) 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.

(g) Federal Income Taxes:

The funds intend to meet federal income and excise tax requirements for regulated investment companies. Accordingly, the funds distribute substantially all of their net investment income and realized net 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.

(h) 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.

3. Risk Factors:

Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.

Asset Allocation Risk. The funds are subject to asset allocation risk, which is the risk that the selection of the underlying funds and the allocation of a fund’s assets among the various asset classes and market segments will cause the funds to underperform other funds with a similar investment objective.

81

 Schwab Target Funds

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

Affiliated Fund Risk. The investment adviser’s authority to select and substitute underlying funds from a variety of affiliated and unaffiliated mutual funds may create a conflict of interest because the fees paid to it by some underlying funds are higher than the fees paid by other underlying funds. However, the portfolio manager is a fiduciary to the fund and is legally obligated to act in the fund’s best interests when selecting underlying funds, without taking fees into consideration.

Market Risk. Stock and bond markets rise and fall daily. As with any investment whose performance is tied to these markets, the value of an investment in the funds will fluctuate, which means that an investor could lose money.

Underlying Fund Investment Risk. The value of your investment in the funds is based primarily on the prices of the underlying funds that the fund purchases. In turn, the price of each underlying fund is based on the value of its securities. The funds are subject to the performance and expenses of the underlying funds in which they invest. Before investing in the funds, investors should assess the risks associated with the underlying funds in which the funds may invest and the types of investments made by those underlying funds. These risks include any combination of the risks described below, although a fund’s exposure to a particular risk will be proportionate to the fund’s overall asset allocation and underlying fund allocation.

•  Investment Risk. An investment in an underlying fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The funds may experience losses with respect to their investment in an underlying fund. Further, there is no guarantee that an underlying fund will be able to achieve its objective.

•  Management Risk. Generally, the underlying funds are actively managed mutual funds. Any actively managed mutual fund is subject to the risk that its investment adviser (or sub-adviser(s)) will make poor security selections. An underlying fund’s adviser applies its own investment techniques and risk analyses in making investment decisions for the underlying fund, but there can be no guarantee that they will produce the desired results.

•  Fixed Income Risk. Interest rates rise and fall over time, which will affect an underlying fund’s yield and share price. Because interest rates in the United States and other countries are at, or near, historically low levels, a change in a central bank’s monetary policy or improving economic conditions may result in an increase in interest rates. A rise in interest rates could cause an underlying fund’s shares price to fall. The credit quality of a portfolio investment could also cause an underlying fund’s share price to fall. An underlying fund could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. Fixed income securities may be paid off earlier or later than expected. Either situation could cause a fund to hold securities paying lower-than-market rates of interest, which could hurt the fund’s yield or share price. Below investment-grade bonds (junk bonds) involve greater credit risk, are more volatile, involve greater risk of price declines and may be more susceptible to economic downturns than investment-grade securities.

•  Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

•  Large-, Mid- and Small-Cap Risk. Stocks of different market capitalizations tend to go in and out of favor based on market and economic conditions. Historically, small- and mid-cap stocks tend to be more volatile than large-cap stocks, and small-cap stocks have been riskier than large- and mid-cap stocks. During a period when stocks of a particular market capitalization fall behind other types of investments — bonds or stocks of another capitalization range, for instance — underlying fund’s large-, mid- or small-cap holdings could reduce performance.

•  Money Market Risk. Although an underlying money market fund seeks to maintain a stable $1 net asset value, it is possible to lose money by investing in a money market fund. In addition, a money market fund is not designed to offer capital appreciation.

•  ETF Risk. When an underlying fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio of securities.

•  Foreign Investment Risk. An underlying fund’s investments in securities of foreign issuers may involve certain risks that are greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control

82 

 Schwab Target Funds

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of the underlying fund’s investments, and could impair the underlying fund’s ability to meet its investment objective or invest in accordance with its investment strategy. To the extent an underlying fund’s investment in a single country or a limited number of countries represents a large percentage of the underlying fund’s assets, the underlying fund’s performance may be adversely affected by the economic, political and social conditions in those countries and it may be subject to increased price volatility.

•  Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Such countries often have less uniformity in accounting and reporting requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with an underlying fund’s investments in emerging market countries and, at times, it may be difficult to value such investments.

•  Derivatives Risk. An underlying 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. An underlying fund’s use of derivatives could reduce the underlying fund’s performance, increase volatility and could cause the fund to lose more than the initial amount invested. In addition, investments in derivatives may involve leverage, which means a small percentage of assets invested in derivatives can have a disproportionately large impact on an underlying fund. However, these risks are less severe when the underlying fund uses derivatives for hedging rather than to enhance the underlying fund’s returns or as a substitute for a position or security.

•  Leverage Risk. Certain underlying fund transactions, such as derivatives, short sales, reverse repurchase agreements, and mortgage dollar rolls, may give rise to a form of leverage and may expose a fund to greater risk. Leverage tends to magnify the effect of any decrease or increase in the value of an underlying fund’s portfolio securities, which means even a small amount of leverage can have a disproportionately large impact on the underlying fund.

•  Liquidity Risk. A particular investment may be difficult to purchase or sell. An underlying fund may be unable to sell illiquid securities at an advantageous time or price.

•  Portfolio Turnover Risk. Certain of the underlying funds may buy and sell portfolio securities actively. If they do, their portfolio turnover rate and transaction costs will rise, which may lower the underlying fund’s performance and may increase the likelihood of capital gain distributions.

Direct Investment Risk. The funds may invest a portion of their assets directly in equity and fixed income securities, ETFs, and cash equivalents, including money market securities. A fund’s direct investment in these securities is subject to the same or similar risks as an underlying fund’s investment in the same security.

Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.

4. Affiliates and Affiliated Transactions:

Charles Schwab Investment Management, Inc. (“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 CSIM and the trust.

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 service providers, including Charles Schwab & Co., Inc. (a broker-dealer affiliate of CSIM, “Schwab”), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the funds. The funds are not subject to any fee under the Plan.

CSIM and its affiliates have agreed 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 expense charged, excluding interest, taxes and certain non-routine expenses to 0.00%.

83

 Schwab Target Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

The agreement to limit the funds’ total expenses charged is limited to each fund’s direct operating expenses and, therefore, does not apply to underlying fund fees and expenses, which are indirect expenses incurred by a fund through its investments in the underlying funds.

The funds may engage in certain transactions involving related parties. Pursuant to an exemptive order issued by the SEC, the funds may invest in other related funds. As of April 30, 2015, each Schwab Target Fund’s ownership percentages of other related funds’ shares are:

	Schwab			Schwab			Schwab			Schwab		Schwab		Schwab		Schwab		Schwab			Schwab			Schwab
	Target			Target			Target			Target		Target		Target		Target		Target			Target			Target
	2010			2015			2020			2025		2030		2035		2040		2045			2050			2055
Underlying Funds	Fund			Fund			Fund			Fund		Fund		Fund		Fund		Fund			Fund			Fund
Schwab Global Real Estate Fund		0.5%			1.0%			5.7%			5.0%		11.2%		5.1%		14.0%		1.0%			0.8%			0.5%
Laudus International MarketMasters Fund, Select Shares		0.1%			0.3%			1.7%			1.5%		3.3%		1.5%		4.1%		0.3%			0.2%			0.1%
Laudus Mondrian Emerging Markets Fund, Institutional Shares		—%			—%			0.6%			0.8%		2.3%		1.3%		4.0%		0.3%			0.3%			0.2%
Schwab International Core Equity Fund		0.4%			0.7%			4.3%			3.7%		8.3%		3.8%		10.3%		0.7%			0.6%			0.3%
Laudus U.S. Large Cap Growth Fund		0.2%			0.4%			2.1%			1.8%		3.9%		1.8%		4.8%		0.3%			0.3%			0.2%
Schwab Core Equity Fund		0.2%			0.4%			2.1%			1.8%		4.0%		1.8%		4.8%		0.3%			0.3%			0.2%
Schwab Dividend Equity Fund		0.1%			0.2%			1.1%			1.0%		2.1%		0.9%		2.6%		0.2%			0.2%			0.1%
Schwab S&P 500 Index Fund		0.0%	*		0.0%	*		0.2%			0.2%		0.4%		0.2%		0.4%		0.0%	*		0.0%	*		0.0%	*
Laudus Small-Cap MarketMasters Fund, Select Shares		0.3%			0.7%			4.9%			4.9%		11.6%		5.6%		16.3%		1.2%			1.0%			0.6%
Schwab Small-Cap Equity Fund		0.2%			0.4%			2.7%			2.6%		6.3%		3.1%		8.8%		0.6%			0.6%			0.3%
Schwab Treasury Inflation Protected Securities Index Fund		1.5%			2.7%			4.7%			0.8%		—%		—%		—%		—%			—%			—%
Schwab Intermediate-Term Bond Fund		—%			—%			1.2%			1.3%		2.8%		1.1%		2.2%		0.1%			0.1%			0.0%	*
Schwab Total Bond Market Fund		1.2%			2.0%			6.8%			3.7%		5.3%		1.5%		2.2%		0.1%			0.0%	*		0.0%	*
Laudus Mondrian International Government Fixed Income Fund		0.2%			0.4%			3.3%			2.4%		3.8%		1.1%		1.5%		0.0%	*		0.0%	*		0.0%	*
Schwab Short-Term Bond Market Fund		1.6%			2.7%			7.4%			3.3%		3.8%		0.8%		0.9%		0.0%	*		0.0%	*		—%
Schwab Value Advantage Money Fund, Institutional Prime Shares		0.0%	*		0.0%	*		0.0%	*		—%		—%		—%		—%		—%			—%			—%

* Less than 0.1%

84 

 Schwab Target Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Below is a summary of the funds’ transactions with their affiliated underlying funds during the period ended April 30, 2015.

Schwab Target 2010 Fund:
	Balance							Balance				Realized			Distributions
	of Shares							of Shares		Market		Gains (Losses)			Received*
	Held at		Gross		Gross			Held at		Value at		11/01/14			11/01/14
Underlying Funds	10/31/14		Purchases		Sales			04/30/15		04/30/15		to 04/30/15			to 04/30/15
Schwab Global Real Estate Fund		182,707		21,365		(18,625	)		185,447		$1,353,760		$7,139			$38,904
Laudus International MarketMasters Fund, Select Shares		123,407		17,525		(6,299	)		134,633		3,231,197		17,769			44,145
Schwab International Core Equity Fund		184,539		49,664		(6,345	)		227,858		2,299,084		460			61,765
Laudus U.S. Large Cap Growth Fund		212,802		48,349		(20,329	)		240,822		4,195,114		33,316			709,944
Schwab Core Equity Fund		172,000		34,830		(8,958	)		197,872		4,535,218		52,668			625,106
Schwab Dividend Equity Fund		117,077		18,304		(16,654	)		118,727		2,026,669		19,546			311,569
Schwab S&P 500 Index Fund		124,324		5,056		(14,045	)		115,335		3,778,378		44,453			70,879
Laudus Small-Cap MarketMasters Fund, Select Shares		41,294		3,743		(10,082	)		34,955		662,400		23,227			16,935
Schwab Small-Cap Equity Fund		56,677		19,243		(15,463	)		60,457		1,306,476		20,511			274,816
Schwab Treasury Inflation Protected Securities Index Fund		292,454		77,990		(7,096	)		363,348		4,073,136		1,453			28,278
Schwab Intermediate-Term Bond Fund		191,073		8,230		(199,303	)		—		—		138,645			16,303
Schwab Total Bond Market Fund		1,822,460		87,722		(347,852	)		1,562,330		15,029,613		56,650			181,281
Laudus Mondrian International Government Fixed Income Fund		32,199		7,968		(3,033	)		37,134		357,598		(1,706	)		17,156
Schwab Short-Term Bond Market Fund		1,039,680		57,256		(435,340	)		661,596		6,166,073		172,486			42,859
Schwab Value Advantage Money Fund, Institutional Prime Shares		1,968,602		207		—			1,968,809		1,968,809		—			231
Total											$50,983,525		$586,617			$2,440,171

85

 Schwab Target Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Schwab Target 2015 Fund:
	Balance							Balance				Realized			Distributions
	of Shares							of Shares		Market		Gains (Losses)			Received*
	Held at		Gross		Gross			Held at		Value at		11/01/14			11/01/14
Underlying Funds	10/31/14		Purchases		Sales			04/30/15		04/30/15		to 04/30/15			to 04/30/15
Schwab Global Real Estate Fund		353,666		36,447		(38,760	)		351,353		$2,564,877		$9,979			$73,004
Laudus International MarketMasters Fund, Select Shares		241,988		33,297		(23,434	)		251,851		6,044,429		185,963			86,592
Laudus Mondrian Emerging Markets Fund, Institutional Shares		33,040		2,246		(35,286	)		—		—		(37,512	)		7,874
Schwab International Core Equity Fund		376,651		84,810		(37,551	)		423,910		4,277,253		(25,320	)		128,114
Laudus U.S. Large Cap Growth Fund		405,274		107,221		(65,904	)		446,591		7,779,622		77,791			1,367,679
Schwab Core Equity Fund		329,482		74,701		(34,042	)		370,141		8,483,635		276,211			1,204,507
Schwab Dividend Equity Fund		221,065		42,899		(41,892	)		222,072		3,790,767		107,041			590,691
Schwab S&P 500 Index Fund		236,179		17,350		(38,609	)		214,920		7,040,790		88,848			135,346
Laudus Small-Cap MarketMasters Fund, Select Shares		86,165		7,907		(25,088	)		68,984		1,307,253		74,304			35,649
Schwab Small-Cap Equity Fund		117,199		39,900		(37,623	)		119,476		2,581,880		100,172			568,040
Schwab Treasury Inflation Protected Securities Index Fund		457,480		186,210		(14,272	)		629,418		7,055,781		2,148			43,720
Schwab Intermediate-Term Bond Fund		340,825		36,035		(376,860	)		—		—		39,744			29,027
Schwab Total Bond Market Fund		2,966,453		240,352		(523,990	)		2,682,815		25,808,680		82,189			302,694
Laudus Mondrian International Government Fixed Income Fund		81,493		15,315		(18,274	)		78,534		756,280		(8,687	)		36,354
Schwab Short-Term Bond Market Fund		1,541,262		260,965		(674,779	)		1,127,448		10,507,813		117,582			67,917
Schwab Value Advantage Money Fund, Institutional Prime Shares		2,691,884		284		—			2,692,168		2,692,168		—			316
Total											$90,691,228		$1,090,453			$4,677,524

86 

 Schwab Target Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Schwab Target 2020 Fund:
	Balance							Balance				Realized			Distributions
	of Shares							of Shares		Market		Gains (Losses)			Received*
	Held at		Gross		Gross			Held at		Value at		11/01/14			11/01/14
Underlying Funds	10/31/14		Purchases		Sales			04/30/15		04/30/15		to 04/30/15			to 04/30/15
Schwab Global Real Estate Fund		2,058,638		177,578		(121,817	)		2,114,399		$15,435,114		$66,734			$441,216
Laudus International MarketMasters Fund, Select Shares		1,448,274		159,434		(46,281	)		1,561,427		37,474,250		244,634			526,311
Laudus Mondrian Emerging Markets Fund, Institutional Shares		415,864		75,437		(70,671	)		420,630		3,562,740		190,502			99,981
Schwab International Core Equity Fund		2,266,999		348,770		(41,667	)		2,574,102		25,972,690		(50,000	)		778,474
Laudus U.S. Large Cap Growth Fund		2,307,052		565,385		(235,726	)		2,636,711		45,931,504		280,167			7,814,562
Schwab Core Equity Fund		1,886,193		392,044		(94,746	)		2,183,491		50,045,603		920,138			6,962,070
Schwab Dividend Equity Fund		1,242,032		216,930		(139,399	)		1,319,563		22,524,948		355,204			3,362,208
Schwab S&P 500 Index Fund		1,327,968		75,755		(135,356	)		1,268,367		41,551,695		415,109			767,779
Laudus Small-Cap MarketMasters Fund, Select Shares		581,124		39,368		(105,262	)		515,230		9,763,607		184,092			239,975
Schwab Small-Cap Equity Fund		785,522		241,581		(157,288	)		869,815		18,796,696		643,873			3,784,075
Schwab Treasury Inflation Protected Securities Index Fund		1,401,642		391,820		(684,975	)		1,108,487		12,426,133		360,707			137,363
Schwab Intermediate-Term Bond Fund		1,475,652		168,924		(1,240,628	)		403,948		4,160,664		264,246			138,563
Schwab Total Bond Market Fund		9,982,914		1,829,089		(2,613,422	)		9,198,581		88,490,350		353,539			1,070,512
Laudus Mondrian International Government Fixed Income Fund		502,623		108,348		(6,141	)		604,830		5,824,509		(7,615	)		247,726
Schwab Short-Term Bond Market Fund		4,022,647		634,732		(1,565,800	)		3,091,579		28,813,518		280,900			178,059
Schwab Value Advantage Money fund, Institutional Prime Shares		5,000,430		526		—			5,000,956		5,000,956		—			586
Total											$415,774,977		$4,502,230			$26,549,460

87

 Schwab Target Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Schwab Target 2025 Fund:
	Balance							Balance				Realized			Distributions
	of Shares							of Shares		Market		Gains (Losses)			Received*
	Held at		Gross		Gross			Held at		Value at		11/01/14			11/01/14
Underlying Funds	10/31/14		Purchases		Sales			04/30/15		04/30/15		to 04/30/15			to 04/30/15
Schwab Global Real Estate Fund		1,654,273		260,036		(62,913	)		1,851,396		$13,515,190		$40,232			$372,536
Laudus International MarketMasters Fund, Select Shares		1,177,278		196,597		(4,205	)		1,369,670		32,872,084		8,621			432,998
Laudus Mondrian Emerging Markets Fund, Institutional Shares		499,531		97,630		(34,583	)		562,578		4,765,037		33,180			122,440
Schwab International Core Equity Fund		1,845,200		416,781		(17,157	)		2,244,824		22,650,274		22,248			646,494
Laudus U.S. Large Cap Growth Fund		1,810,717		544,672		(90,740	)		2,264,649		39,450,183		159,591			6,252,854
Schwab Core Equity Fund		1,493,786		435,600		(44,130	)		1,885,256		43,210,064		98,393			5,554,838
Schwab Dividend Equity Fund		967,290		238,007		(68,590	)		1,136,707		19,403,584		13,144			2,653,312
Schwab S&P 500 Index Fund		1,041,807		129,392		(81,993	)		1,089,206		35,682,381		339,341			612,535
Laudus Small-Cap MarketMasters Fund, Select Shares		512,156		73,742		(76,613	)		509,285		9,650,951		95,623			214,648
Schwab Small-Cap Equity Fund		693,545		244,793		(86,330	)		852,008		18,411,886		556,060			3,367,751
Schwab Treasury Inflation Protected Securities Index Fund		656,234		182,650		(655,434	)		183,450		2,056,477		(102,917	)		65,200
Schwab Intermediate-Term Bond Fund		903,044		151,413		(608,384	)		446,073		4,594,548		53,156			89,749
Schwab Total Bond Market Fund		5,027,329		1,849,481		(1,804,951	)		5,071,859		48,791,285		242,011			580,801
Laudus Mondrian International Government Fixed Income Fund		331,802		102,365		—			434,167		4,181,027		—			157,826
Schwab Short-Term Bond Market Fund		1,679,074		374,786		(683,365	)		1,370,495		12,773,016		22,999			75,657
Total											$312,007,987		$1,581,682			$21,199,639

88 

 Schwab Target Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Schwab Target 2030 Fund:
	Balance							Balance				Realized		Distributions
	of Shares							of Shares		Market		Gains (Losses)		Received*
	Held at		Gross		Gross			Held at		Value at		11/01/14		11/01/14
Underlying Funds	10/31/14		Purchases		Sales			04/30/15		04/30/15		to 04/30/15		to 04/30/15
Schwab Global Real Estate Fund		3,890,065		407,414		(194,677	)		4,102,802		$29,950,451		$114,228		$850,407
Laudus International MarketMasters Fund, Select Shares		2,803,203		245,486		(20,525	)		3,028,164		72,675,936		53,161		1,005,644
Laudus Mondrian Emerging Markets Fund, Institutional Shares		1,487,245		179,141		(61,881	)		1,604,505		13,590,158		25,942		355,545
Schwab International Core Equity Fund		4,348,656		683,378		(83,284	)		4,948,750		49,932,889		75,502		1,503,891
Laudus U.S. Large Cap Growth Fund		4,202,473		1,004,531		(287,304	)		4,919,700		85,701,177		470,935		14,090,231
Schwab Core Equity Fund		3,450,450		791,710		(154,474	)		4,087,686		93,689,767		1,103,079		12,725,153
Schwab Dividend Equity Fund		2,235,575		411,172		(171,759	)		2,474,988		42,248,046		443,867		6,061,196
Schwab S&P 500 Index Fund		2,390,764		143,313		(167,351	)		2,366,726		77,533,928		559,795		1,374,859
Laudus Small-Cap MarketMasters Fund, Select Shares		1,279,435		92,222		(152,124	)		1,219,533		23,110,156		182,061		524,696
Schwab Small-Cap Equity Fund		1,755,081		485,193		(209,867	)		2,030,407		43,877,086		1,208,810		8,264,386
Schwab Treasury Inflation Protected Securities Index Fund		939,055		43,961		(983,016	)		—		—		5,366		91,723
Schwab Intermediate-Term Bond Fund		1,517,416		180,094		(754,159	)		943,351		9,716,511		88,262		155,015
Schwab Total Bond Market Fund		8,104,012		2,348,082		(3,242,809	)		7,209,285		69,353,317		437,663		884,699
Laudus Mondrian International Government Fixed Income Fund		554,624		149,140		—			703,764		6,777,251		—		261,492
Schwab Short-Term Bond Market Fund		2,167,151		228,564		(820,978	)		1,574,737		14,676,553		31,331		90,826
Total											$632,833,226		$4,800,002		$48,239,763

89

 Schwab Target Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Schwab Target 2035 Fund:
	Balance							Balance				Realized			Distributions
	of Shares							of Shares		Market		Gains (Losses)			Received*
	Held at		Gross		Gross			Held at		Value at		11/01/14			11/01/14
Underlying Funds	10/31/14		Purchases		Sales			04/30/15		04/30/15		to 04/30/15			to 04/30/15
Schwab Global Real Estate Fund		1,641,505		271,881		(54,840	)		1,858,546		$13,567,387		$37,924			$369,649
Laudus International MarketMasters Fund, Select Shares		1,186,085		194,175		—			1,380,260		33,126,232		—			432,218
Laudus Mondrian Emerging Markets Fund, Institutional Shares		752,760		127,505		—			880,265		7,455,841		—			182,757
Schwab International Core Equity Fund		1,843,020		407,941		—			2,250,961		22,712,193		—			644,095
Laudus U.S. Large Cap Growth Fund		1,737,627		536,815		(67,830	)		2,206,612		38,439,184		119,404			5,969,027
Schwab Core Equity Fund		1,438,310		408,604		(12,893	)		1,834,021		42,035,768		54,585			5,342,860
Schwab Dividend Equity Fund		926,642		220,548		(34,236	)		1,112,954		18,998,118		7,495			2,516,405
Schwab S&P 500 Index Fund		991,827		137,540		(66,182	)		1,063,185		34,829,933		253,967			578,330
Laudus Small-Cap MarketMasters Fund, Select Shares		568,739		81,895		(59,212	)		591,422		11,207,440		71,160			240,446
Schwab Small-Cap Equity Fund		783,366		251,377		(53,593	)		981,150		21,202,647		437,484			3,718,987
Schwab Treasury Inflation Protected Securities Index Fund		252,080		15,279		(267,359	)		—		—		(35,244	)		24,947
Schwab Intermediate-Term Bond Fund		419,647		93,785		(142,300	)		371,132		3,822,656		16,356			46,254
Schwab Total Bond Market Fund		2,148,005		901,730		(1,009,904	)		2,039,831		19,623,177		140,088			244,300
Laudus Mondrian International Government Fixed Income Fund		129,325		69,129		—			198,454		1,911,116		—			62,810
Schwab Short-Term Bond Market Fund		511,375		67,280		(235,559	)		343,096		3,197,656		12,793			20,690
Total											$272,129,348		$1,116,012			$20,393,775

90 

 Schwab Target Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Schwab Target 2040 Fund:
	Balance							Balance				Realized			Distributions
	of Shares							of Shares		Market		Gains (Losses)			Received*
	Held at		Gross		Gross			Held at		Value at		11/01/14			11/01/14
Underlying Funds	10/31/14		Purchases		Sales			04/30/15		04/30/15		to 04/30/15			to 04/30/15
Schwab Global Real Estate Fund		4,779,252		536,821		(172,088	)		5,143,985		$37,551,087		$100,605			$1,061,040
Laudus International MarketMasters Fund, Select Shares		3,454,154		324,343		—			3,778,497		90,683,932		—			1,247,244
Laudus Mondrian Emerging Markets Fund, Institutional Shares		2,500,623		351,034		(40,120	)		2,811,537		23,813,716		13,457			600,555
Schwab International Core Equity Fund		5,400,807		773,151		(21,810	)		6,152,148		62,075,178		8,070			1,861,776
Laudus U.S. Large Cap Growth Fund		5,021,116		1,189,676		(244,886	)		5,965,906		103,926,080		397,520			16,902,503
Schwab Core Equity Fund		4,121,548		936,660		(95,847	)		4,962,361		113,737,313		897,532			15,255,911
Schwab Dividend Equity Fund		2,649,099		454,024		(95,225	)		3,007,898		51,344,825		281,687			7,188,445
Schwab S&P 500 Index Fund		2,836,058		155,317		(121,016	)		2,870,359		94,032,970		432,351			1,636,613
Laudus Small-Cap MarketMasters Fund, Select Shares		1,732,691		122,333		(147,703	)		1,707,321		32,353,738		212,858			715,694
Schwab Small-Cap Equity Fund		2,375,824		638,472		(186,736	)		2,827,560		61,103,581		1,448,890			11,121,881
Schwab Treasury Inflation Protected Securities Index Fund		366,838		3,115		(369,953	)		—		—		103,736			34,519
Schwab Intermediate-Term Bond Fund		671,685		111,473		(29,240	)		753,918		7,765,355		1,990			78,486
Schwab Total Bond Market Fund		3,538,065		1,168,316		(1,676,740	)		3,029,641		29,145,150		233,686			387,906
Laudus Mondrian International Government Fixed Income Fund		115,319		176,352		(11,248	)		280,423		2,700,472		(10,460	)		61,309
Schwab Short-Term Bond Market Fund		917,303		40,870		(596,742	)		361,431		3,368,537		23,643			30,128
Total											$713,601,934		$4,145,565			$58,184,010

91

 Schwab Target Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Schwab Target 2045 Fund:
	Balance							Balance				Realized			Distributions
	of Shares							of Shares		Market		Gains (Losses)			Received*
	Held at		Gross		Gross			Held at		Value at		11/01/14			11/01/14
Underlying Funds	10/31/14		Purchases		Sales			04/30/15		04/30/15		to 04/30/15			to 04/30/15
Schwab Global Real Estate Fund		263,963		113,165		(10,249	)		366,879		$2,678,220		$134			$66,812
Laudus International MarketMasters Fund, Select Shares		191,087		80,056		(1,100	)		270,043		6,481,035		(3,437	)		73,357
Laudus Mondrian Emerging Markets Fund, Institutional Shares		147,461		73,289		(2,735	)		218,015		1,846,582		(1,597	)		37,905
Schwab International Core Equity Fund		296,812		142,860		—			439,672		4,436,290		—			109,922
Laudus U.S. Large Cap Growth Fund		274,441		149,446		(1,472	)		422,415		7,358,464		545			988,450
Schwab Core Equity Fund		225,804		127,441		—			353,245		8,096,373		—			879,356
Schwab Dividend Equity Fund		145,377		70,911		(1,908	)		214,380		3,659,475		(4,607	)		417,419
Schwab S&P 500 Index Fund		155,822		51,519		(3,223	)		204,118		6,686,917		(1,069	)		95,155
Laudus Small-Cap MarketMasters Fund, Select Shares		98,072		29,834		(2,111	)		125,795		2,383,819		(1,185	)		43,553
Schwab Small-Cap Equity Fund		133,466		76,389		(1,804	)		208,051		4,495,966		(7,173	)		668,096
Schwab Treasury Inflation Protected Securities Index Fund		10,886		93		(10,979	)		—		—		(1,987	)		1,024
Schwab Intermediate-Term Bond Fund		19,885		14,741		—			34,626		356,645		—			2,791
Schwab Total Bond Market Fund		117,794		69,079		(54,062	)		132,811		1,277,640		(1,892	)		14,360
Laudus Mondrian International Government Fixed Income Fund		5,215		3,837		—			9,052		87,169		—			2,326
Schwab Short-Term Bond Market Fund		34,422		5,934		(29,898	)		10,458		97,474		780			1,117
Total											$49,942,069		($21,488	)		$3,401,643

92 

 Schwab Target Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Schwab Target 2050 Fund:
	Balance							Balance				Realized			Distributions
	of Shares							of Shares		Market		Gains (Losses)			Received*
	Held at		Gross		Gross			Held at		Value at		11/01/14			11/01/14
Underlying Funds	10/31/14		Purchases		Sales			04/30/15		04/30/15		to 04/30/15			to 04/30/15
Schwab Global Real Estate Fund		221,492		86,192		—			307,684		$2,246,095		$—			$55,936
Laudus International MarketMasters Fund, Select Shares		159,800		67,136		—			226,936		5,446,474		—			60,526
Laudus Mondrian Emerging Markets Fund, Institutional Shares		129,830		62,569		—			192,399		1,629,619		—			33,005
Schwab International Core Equity Fund		250,692		117,269		—			367,961		3,712,731		—			90,260
Laudus U.S. Large Cap Growth Fund		227,146		130,075		(3,399	)		353,822		6,163,582		(3,230	)		808,683
Schwab Core Equity Fund		188,842		106,044		(908	)		293,978		6,737,969		(4,053	)		720,285
Schwab Dividend Equity Fund		120,704		61,569		(4,006	)		178,267		3,043,014		(8,769	)		339,510
Schwab S&P 500 Index Fund		129,342		43,963		(3,892	)		169,413		5,549,955		(1,155	)		78,008
Laudus Small-Cap MarketMasters Fund, Select Shares		83,183		25,496		(1,161	)		107,518		2,037,457		(634	)		36,347
Schwab Small-Cap Equity Fund		114,073		63,478		—			177,551		3,836,875		—			556,311
Schwab Treasury Inflation Protected Securities Index Fund		2,539		566		(3,105	)		—		—		(123	)		290
Schwab Intermediate-Term Bond Fund		9,960		7,424		—			17,384		179,053		—			1,241
Schwab Total Bond Market Fund		61,139		38,954		(37,292	)		62,801		604,144		(596	)		7,297
Laudus Mondrian International Government Fixed Income Fund		2,945		3,046		—			5,991		57,692		—			1,443
Schwab Short-Term Bond Market Fund		18,859		4,157		(20,114	)		2,902		27,043		783			628
Total											$41,271,703		($17,777	)		$2,789,770

93

 Schwab Target Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Schwab Target 2055 Fund:
	Balance							Balance				Realized			Distributions
	of Shares							of Shares		Market		Gains (Losses)			Received*
	Held at		Gross		Gross			Held at		Value at		11/01/14			11/01/14
Underlying Funds	10/31/14		Purchases		Sales			04/30/15		04/30/15		to 04/30/15			to 04/30/15
Schwab Global Real Estate Fund		120,724		48,698		(3,005	)		166,417		$1,214,844		($21	)		$30,436
Laudus International MarketMasters Fund, Select Shares		87,694		35,241		(779	)		122,156		2,931,738		(2,403	)		33,540
Laudus Mondrian Emerging Markets Fund, Institutional Shares		73,790		37,213		(1,319	)		109,684		929,026		(1,642	)		18,985
Schwab International Core Equity Fund		136,701		62,327		—			199,028		2,008,194		—			49,765
Laudus U.S. Large Cap Growth Fund		123,392		70,414		(3,527	)		190,279		3,314,655		(8,099	)		443,270
Schwab Core Equity Fund		102,588		55,701		(500	)		157,789		3,616,516		(2,184	)		393,888
Schwab Dividend Equity Fund		65,612		33,458		(3,217	)		95,853		1,636,207		(7,261	)		185,562
Schwab S&P 500 Index Fund		70,350		24,235		(3,212	)		91,373		2,993,394		(296	)		42,976
Laudus Small-Cap MarketMasters Fund, Select Shares		46,684		14,955		(2,407	)		59,232		1,122,450		(126	)		20,331
Schwab Small-Cap Equity Fund		62,882		34,853		—			97,735		2,112,052		—			310,080
Schwab Treasury Inflation Protected Securities Index Fund		677		6		(683	)		—		—		(267	)		64
Schwab Intermediate-Term Bond Fund		792		2,351		—			3,143		32,371		—			139
Schwab Total Bond Market Fund		17,508		6,219		(12,500	)		11,227		108,004		536			1,856
Laudus Mondrian International Government Fixed Income Fund		454		1,457		—			1,911		18,405		—			202
Schwab Short-Term Bond Market Fund		4,666		546		(5,212	)		—		—		359			85
Total											$22,037,856		($21,404	)		$1,531,179

*	Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds.
**	Less than $1.

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 only. The interest rate to be charged on a loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. 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 a 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:

The funds have access to custodian overdraft facilities, a committed line of credit of $150 million with State Street Bank and Trust Company (“State Street”), an uncommitted line of credit of $100 million with Bank of America, N.A. and an uncommitted line of credit of $50 million with Brown Brothers Harriman & Co. The funds pay interest on the amounts they borrow at rates that are negotiated periodically. The funds also pay an annual fee to State Street for the committed line of credit.

94 

 Schwab Target Funds

Financial Notes, unaudited (continued)

6. Borrowing from Banks (continued):

There were no borrowings from the lines of credit by the funds during the period. However, the funds may have utilized their overdraft facility and incurred an interest expense, which is disclosed on a fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

7. Purchases and Sales/Maturities of Investment Securities:

For the period ended April 30, 2015, purchases and sales/maturities of securities (excluding short-term obligations) were as follows:

	Purchases of Securities		Sales/Maturities of Securities
Schwab Target 2010 Fund		$15,718,498		$13,368,094
Schwab Target 2015 Fund		31,598,956		24,753,022
Schwab Target 2020 Fund		133,650,938		92,046,000
Schwab Target 2025 Fund		111,338,739		54,660,000
Schwab Target 2030 Fund		168,613,148		99,811,643
Schwab Target 2035 Fund		77,747,968		26,665,012
Schwab Target 2040 Fund		140,413,400		57,872,782
Schwab Target 2045 Fund		18,840,371		1,800,753
Schwab Target 2050 Fund		15,036,977		1,093,430
Schwab Target 2055 Fund		7,682,403		580,092

8. Redemption Fee:

The funds charge a 2.00% redemption fee on shares sold or exchanged within 30 days of the original purchase date. Such amounts are netted against redemption proceeds on the Statement of Changes in Net Assets. The redemption fees charged during the current and prior periods are:

	Current Period		Prior Period
	(11/1/14-4/30/15)		(11/1/13-10/31/14)
Schwab Target 2010 Fund		$136		$794
Schwab Target 2015 Fund		483		15,988
Schwab Target 2020 Fund		3,522		3,150
Schwab Target 2025 Fund		2,954		6,611
Schwab Target 2030 Fund		5,354		6,510
Schwab Target 2035 Fund		2,364		8,744
Schwab Target 2040 Fund		10,758		16,557
Schwab Target 2045 Fund		1,595		2,375
Schwab Target 2050 Fund		923		3,231
Schwab Target 2055 Fund		656		646

9. Federal Income Taxes:

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2014, the funds had capital loss carryforwards available to offset future net capital gains before the expiration dates as follows:

	Schwab		Schwab		Schwab		Schwab		Schwab		Schwab		Schwab
	Target		Target		Target		Target		Target		Target		Target
	2010		2015		2020		2025		2030		2035		2040
Expiration Date	Fund		Fund		Fund		Fund		Fund		Fund		Fund
October 31, 2017		$12,069,847		$—		$7,947,695		$—		$—		$—		$—
October 31, 2018		—		—		1,839,068		—		—		—		—
Total		$12,069,847		$—		$9,786,763		$—		$—		$—		$—

95

 Schwab Target Funds

Financial Notes, unaudited (continued)

9. Federal Income Taxes (continued):

	Schwab		Schwab		Schwab
	Target		Target		Target
	2045		2050		2055
Expiration Date	Fund		Fund		Fund
October 31, 2017		$—		$—		$—
October 31, 2018		—		—		—
Total		$—		$—		$—

For the year ended October 31, 2014, the funds had capital loss carryforwards utilized as follows:

Schwab

Schwab

Schwab

Schwab

Schwab

Schwab

Schwab

Target

Target

Target

Target

Target

Target

Target

2010

2015

2020

2025

2030

2035

2040

Fund

Fund

Fund

Fund

Fund

Fund

Fund

Capital loss carryforwards utilized

$3,897,248

$15,291

$25,378,769

$404,977

$28,459,676

$357,333

$22,282,261

Schwab

Schwab

Schwab

Target

Target

Target

2045

2050

2055

Fund

Fund

Fund

Capital loss carryforwards utilized

$27,855

$26,104

$424

As of October 31, 2014, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended October 31, 2014, the funds did not incur any interest or penalties.

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.

96 

Trustees and Officers

The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust. The Fund Complex includes 95 funds.

The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-800-435-4000.

 Independent Trustees

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served1)	During the Past Five Years	the Trustee	Other Directorships
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 and Laudus Institutional Trust since 2010)	Senior Fellow, The Hoover Institution at Stanford University (Oct. 1979 – present); Senior Fellow Stanford Institute for Economic Policy Research (2000 – present); Professor of Public Policy, Stanford University (1994 – present).	74	Director, Gilead Sciences, Inc. (2005 – present)
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Private Investor.	74	Director, Symantec Corporation (2003 – present) Director, Corcept Therapeutics Incorporated (2004 – present) Director, Adamas Pharmaceuticals, Inc. (2009 – present)
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Retired. Executive Vice President and General Manager of Small Business Group, Intuit, Inc. (financial software and services firm for consumers and small businesses) (Dec. 2008 – Sept. 2013)	74	Director, KLA-Tencor Corporation (2008 – present)

97

 Independent Trustees (continued)

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served1)	During the Past Five Years	the Trustee	Other Directorships
Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2015)	Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (May 2009 – present); Director, Asset International, Inc. (publisher of financial services information) (Jan. 2009 – Nov. 2014).	95	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 and Laudus Institutional Trust since 2010)	Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (Mar. 1990 –present).	74	Director, Eaton (2012 – present) Director and Chairman of the Audit Committee, Oneok Partners LP (2003 – 2013) Director, Oneok, Inc. (2009 – 2013) Lead Independent Director, Board of Cooper Industries (2002 – 2012)
Joseph H. Wender 1944 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010)	Senior Consultant, Goldman Sachs & Co., Inc. (investment banking and securities firm) (Jan. 2008 – present); Partner, Colgin Partners, LLC (vineyards) (Feb. 1998 – present).	74	Board Member and Chairman of the Audit Committee, Isis Pharmaceuticals (1994 – present)

98 

 Interested Trustees

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served)	During the Past Five Years	the Trustee	Other Directorships
Charles R. Schwab2 1937 Chairman and Trustee (Chairman and Trustee of The Charles Schwab Family of Funds since 1989; Schwab Investments since 1991; Schwab Capital Trust since 1993; Schwab Annuity Portfolios since 1994; Laudus Trust and Laudus Institutional Trust since 2010)	Chairman and Director, The Charles Schwab Corporation (1986 – present); Chairman and Director of Charles Schwab & Co., Inc. (1971 – present); Chairman and Director of Charles Schwab Investment Management, Inc. (1989 – present); Chairman and Director of Charles Schwab Bank (2003 – present); Chairman and Chief Executive Officer of Schwab (SIS) Holdings Inc. I and Schwab International Holdings, Inc. (1996 – present); and Director, Chairman and Chief Executive Officer, Schwab Holdings, Inc. (1979 – present).	74	Chairman and Director, The Charles Schwab Corporation (1986 – present) Director, Yahoo! Inc. (2014 – present)
Walter W. Bettinger II2 1960 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (2008 – present); Director, Charles Schwab Bank (2006 – present); and Director Schwab Holdings, Inc. (2008 – present).	95	Director, The Charles Schwab Corporation (2008 – present)

 Officers of the Trust

Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served3)	Principal Occupations During the Past Five Years
Marie Chandoha 1961 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (January 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – August 2010).
George Pereira 1964 Treasurer and Principal Financial Officer, Schwab Funds Treasurer and Chief Financial Officer, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust and Laudus Institutional Trust since 2006)	Senior Vice President and Chief Financial Officer (Nov. 2004 – present), Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present) and Schwab ETFs (Oct. 2009 – present); Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present).

99

 Officers of the Trust (continued)

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
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Equities, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009).
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Senior Managing Director, Global Head of Active Fixed-Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies Loomis, Sayles & Company (April 2006 – Jan. 2008).
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President (Sept. 2011 – present), Vice President (March 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present), Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds 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, Laudus Trust and Laudus Institutional Trust since 2005)	Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (March 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary, Schwab ETFs (Oct. 2009 – present).

1	Trustees remain in office until they resign, retire or are removed by shareholder vote. The Schwab and Laudus Funds’ retirement policy requires that independent trustees retire at age 72 or after twenty years as a trustee, whichever comes first. In addition, the retirement policy requires any independent trustee of Schwab Funds or Laudus Funds to retire from all Boards upon their required retirement date from either Board.
2	Mr. Schwab and Mr. Bettinger are Interested Trustees because they own stock of The Charles Schwab Corporation, the parent company of the investment adviser.
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 Boards.

.

100 

Glossary

asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.

asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.

Barclays U.S. Aggregate Bond Index A broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-back securities (agency fixed-rate and hybrid ARM passthroughs), asset-backed securities, and commercial mortgage-backed securities.

Barclays U.S. Intermediate Aggregate Bond Index An index that represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.

Barclays U.S. Government/Credit: 1 − 5 Years Index An index that includes investment-grade government and corporate bonds that are denominated in U.S. dollars and have maturities of one to five years. Bonds are represented in the index in proportion to their market value.

Barclays U.S. TIPS (Treasury Inflation-Protected Securities) Index An index that measures the performance of fixed income securities with fixed-rate coupon payments that adjust for inflation, as measured by the Consumer Price Index for All Urban Consumers.

Barclays U.S. Treasury Bills 1 − 3 Months Index An index that includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value.

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.

cap, capitalization See “market cap.”

capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.

Citigroup Non-U.S. Dollar World Government Bond Index An index that measures the total rate of return performance for the government bonds of 23 countries, excluding the U.S., with a remaining maturity of at least one year.

Dow Jones U.S. Total Stock Market Index An index that measures the performance of all U.S. equity securities with readily available prices.

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.

FTSE EPRA/NAREIT Global Index An index that is designed to provide a diverse representation of publicly traded equity REITs and listed property companies worldwide.

market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.

MSCI EAFE (Europe, Australasia, Far East) Index A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.

MSCI Emerging Markets Index A free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

net asset value (NAV) The value of one share of a 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.

Russell 2000 Index An index that measures the performance of the small-cap segment of the U.S. equity universe. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

S&P 500 Index A market capitalization index that is designed to measure the performance of 500 leading publicly held companies in leading industries of the U.S. economy.

stock A share of ownership, or equity, in the issuing company.

Target 2010 Composite Index A custom blended index developed by CSIM based on the 2010 fund’s asset allocation glide schedule that will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index has been replaced by a combination of the S&P 500 Index and the Russell 2000 Index. The current composite is derived using the following portion allocations: 25.9% S&P 500 Index, 3.4% Russell 2000 Index, 7.3% MSCI EAFE Index, 1.9% FTSE EPRA/NAREIT Global Index, 28.3% Barclays U.S. Aggregate Bond Index, 3.5% Barclays U.S. Intermediate Aggregate Bond Index, 1.9% Barclays U.S. Government/Credit Bond Index, 14.4% Barclays U.S. Government/Credit: 1 − 5 Yrs Index, 5.7% Barclays U.S. TIPS Index, 1.3% Citigroup Non-U.S. Dollar World Government Bond Index, and 6.5% Barclays U.S. Treasury Bills: 1 − 3 Months Index.

101

Target 2015 Composite Index A custom blended index developed by CSIM based on the 2015 fund’s asset allocation glide schedule that will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index has been replaced by a combination of the S&P 500 Index and the Russell 2000 Index. The current composite is derived using the following portion allocations: 28.4% S&P 500 Index, 4.0% Russell 2000 Index, 8.6% MSCI EAFE Index, 0.1% MSCI Emerging Markets Index, 2.2% FTSE EPRA/NAREIT Global Index, 26.5% Barclays U.S. Aggregate Bond Index, 3.6% Barclays U.S. Intermediate Aggregate Bond Index, 2.1% Barclays U.S. Government/Credit Bond Index, 12.1% Barclays U.S. Government/Credit: 1 − 5 Yrs Index, 5.1% Barclays U.S. TIPS Index, 1.5% Citigroup Non-U.S. Dollar World Government Bond Index, and 5.8% Barclays U.S. Treasury Bills: 1 − 3 Months Index.

Target 2020 Composite Index A custom blended index developed by CSIM based on the 2020 fund’s asset allocation glide schedule that will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index has been replaced by a combination of the S&P 500 Index and the Russell 2000 Index. The current composite is derived using the following portion allocations: 36.0% S&P 500 Index, 6.1% Russell 2000 Index, 11.3% MSCI EAFE Index, 0.6% MSCI Emerging Markets Index, 2.8% FTSE EPRA/NAREIT Global Index, 20.9% Barclays U.S. Aggregate Bond Index, 3.5% Barclays U.S. Intermediate Aggregate Bond Index, 2.5% Barclays U.S. Government/Credit Bond Index, 6.7% Barclays U.S. Government/Credit: 1 − 5 Yrs Index, 3.7% Barclays U.S. TIPS Index, 1.8% Citigroup Non-U.S. Dollar World Government Bond Index, and 4.1% Barclays U.S. Treasury Bills: 1 − 3 Months Index.

Target 2025 Composite Index A custom blended index developed by CSIM based on the 2025 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index has been replaced by a combination of the S&P 500 Index and the Russell 2000 Index. The current composite is derived using the following portion allocations: 41.2% S&P 500 Index, 7.8% Russell 2000 Index, 13.4% MSCI EAFE Index, 1.1% MSCI Emerging Markets Index, 3.3% FTSE EPRA/NAREIT Global Index, 16.4% Barclays U.S. Aggregate Bond Index, 3.1% Barclays U.S. Intermediate Aggregate Bond Index, 2.4% Barclays U.S. Government/Credit Bond Index, 3.8% Barclays U.S. Government/Credit: 1 − 5 Yrs Index, 2.7% Barclays U.S. TIPS Index, 1.7% Citigroup Non-U.S. Dollar World Government Bond Index, and 3.2% Barclays U.S. Treasury Bills: 1 − 3 Months Index.

Target 2030 Composite Index A custom blended index developed by CSIM based on the 2030 fund’s asset allocation glide schedule that will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index has been replaced by a combination of the S&P 500 Index and the Russell 2000 Index. The current composite is derived using the following portion allocations: 45.0% S&P 500 Index, 9.2% Russell 2000 Index, 15.0% MSCI EAFE Index, 1.6% MSCI Emerging Markets Index, 3.7% FTSE EPRA/NAREIT Global Index, 12.6% Barclays U.S. Aggregate Bond Index, 2.6% Barclays U.S. Intermediate Aggregate Bond Index, 2.1% Barclays U.S. Government/Credit Bond Index, 2.0% Barclays U.S. Government/Credit: 1 − 5 Yrs Index, 1.9% Barclays U.S. TIPS Index, 1.5% Citigroup Non-U.S. Dollar World Government Bond Index, and 2.6% Barclays U.S. Treasury Bills: 1 − 3 Months Index.

Target 2035 Composite Index A custom blended index developed by CSIM based on the 2035 fund’s asset allocation glide schedule that will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index has been replaced by a combination of the S&P 500 Index and the Russell 2000 Index. The current composite is derived using the following portion allocations: 48.3% S&P 500 Index, 10.6% Russell 2000 Index, 16.4% MSCI EAFE Index, 2.2% MSCI Emerging Markets Index, 4.1% FTSE EPRA/NAREIT Global Index, 9.1% Barclays U.S. Aggregate Bond Index, 2.0% Barclays U.S. Intermediate Aggregate Bond Index, 1.6% Barclays U.S. Government/Credit Bond Index, 0.9% Barclays U.S. Government/Credit: 1 − 5 Yrs Index, 1.3% Barclays U.S. TIPS Index, 1.2% Citigroup Non-U.S. Dollar World Government Bond Index, and 2.3% Barclays U.S. Treasury Bills: 1 − 3 Months Index.

Target 2040 Composite Index A custom blended index developed by CSIM based on the 2040 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index has been replaced by a combination of the S&P 500 Index and the Russell 2000 Index. The current composite is derived using the following portion allocations: 50.9% S&P 500 Index, 11.8% Russell 2000 Index, 17.5% MSCI EAFE Index, 2.7% MSCI Emerging Markets Index, 4.4% FTSE EPRA/NAREIT Global Index, 6.0% Barclays U.S. Aggregate Bond Index, 1.4% Barclays U.S. Intermediate Aggregate Bond Index, 1.2% Barclays U.S. Government/Credit Bond Index, 0.4% Barclays U.S. Government/Credit: 1 − 5 Yrs Index, 0.8% Barclays U.S. TIPS Index, 0.9% Citigroup Non-U.S. Dollar World Government Bond Index, and 2.1% Barclays U.S. Treasury Bills: 1 − 3 Months Index.

Target 2045 Composite Index A custom blended index developed by CSIM based on the 2045 fund’s asset allocation glide schedule that will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index has been replaced by a combination of the S&P 500 Index and the Russell 2000 Index. The current composite is derived using the following portion allocations: 52.2% S&P 500 Index, 12.5% Russell 2000 Index, 18.1% MSCI EAFE Index, 3.1% MSCI Emerging Markets Index, 4.5% FTSE EPRA/NAREIT Global Index, 4.3% Barclays U.S. Aggregate Bond Index, 1.0% Barclays U.S. Intermediate Aggregate Bond Index, 0.8% Barclays U.S. Government/Credit Bond Index, 0.1% Barclays U.S. Government/Credit: 1 − 5 Yrs Index, 0.6% Barclays U.S. TIPS Index, 0.6% Citigroup Non-U.S. Dollar World Government Bond Index, and 2.0% Barclays U.S. Treasury Bills: 1 − 3 Months Index.

Target 2050 Composite Index A custom blended index developed by CSIM based on the 2050 fund’s asset allocation glide schedule that will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index has been replaced by a combination of the S&P 500 Index and the Russell 2000 Index. The current composite is derived using the following portion allocations: 53.3% S&P 500 Index, 13.1% Russell 2000 Index, 18.6% MSCI EAFE Index, 3.3% MSCI Emerging Markets Index, 4.6% FTSE EPRA/NAREIT Global Index, 2.9% Barclays U.S. Aggregate Bond Index, 0.7% Barclays U.S. Intermediate Aggregate Bond Index, 0.6% Barclays U.S. Government/Credit Bond Index, 0.4% Barclays U.S. TIPS Index, 0.4% Citigroup Non-U.S. Dollar World Government Bond Index, and 2.0% Barclays U.S. Treasury Bills: 1 − 3 Months Index.

102 

Target 2055 Composite Index A custom blended index developed by CSIM based on the 2055 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index has been replaced by a combination of the S&P 500 Index and the Russell 2000 Index. The current composite is derived using the following portion allocations: 54.2% S&P 500 Index, 13.5% Russell 2000 Index, 19.0% MSCI EAFE Index, 3.6% MSCI Emerging Markets Index, 4.8% FTSE EPRA/NAREIT Global Index, 1.7% Barclays U.S. Aggregate Bond Index, 0.4% Barclays U.S. Intermediate Aggregate Bond Index, 0.4% Barclays U.S. Government/Credit Bond Index, 0.2% Barclays U.S. TIPS Index, 0.3% Citigroup Non-U.S. Dollar World Government Bond Index, and 2.0% Barclays U.S. Treasury Bills: 1 − 3 Months Index.

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.

103

Notes

Notes

Notes

Schwab Funds^® offers you an extensive family of mutual funds, each one based on a clearly defined investment approach and using disciplined management strategies. The list at right shows all currently available Schwab Funds.

Whether you are an experienced investor or just starting out, Schwab Funds can help you achieve your financial goals. An investor should consider a fund’s investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information can be found in the fund’s prospectus. Please call 1-800-435-4000 for a prospectus and brochure 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.csimfunds.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-800-435-4000.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.csimfunds.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.

The Schwab Funds Family^®

Stock Funds

Schwab Core Equity Fund^tm

Schwab Dividend Equity Fund^tm

Schwab Large-Cap Growth Fund^tm

Schwab Small-Cap Equity Fund^tm

Schwab Hedged Equity Fund^tm

Schwab Financial Services Fund^tm

Schwab Health Care Fund^tm

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^tm

Schwab^® S&P 500 Index Fund

Schwab 1000 Index^® Fund

Schwab Small-Cap Index Fund^®

Schwab Total Stock Market Index Fund^®

Schwab International Index Fund^®

Asset Allocation Funds

Schwab Balanced Fund^tm

Schwab MarketTrack All Equity Portfolio^tm

Schwab MarketTrack Growth Portfolio^tm

Schwab MarketTrack Balanced Portfolio^tm

Schwab MarketTrack Conservative Portfolio^tm

Schwab Target 2010 Fund

Schwab Target 2015 Fund

Schwab Target 2020 Fund

Schwab Target 2025 Fund

Schwab Target 2030 Fund

Schwab Target 2035 Fund

Schwab Target 2040 Fund

Schwab Target 2045 Fund

Schwab Target 2050 Fund

Schwab Target 2055 Fund

Schwab^® Monthly Income Fund – Moderate Payout

Schwab^® Monthly Income Fund – Enhanced Payout

Schwab^® Monthly Income Fund – Maximum Payout

Bond Funds

Schwab Short-Term Bond Market Fund^tm

Schwab Intermediate-Term Bond Fund^tm

Schwab Total Bond Market Fund^tm

Schwab GNMA Fund^tm

Schwab^® Treasury Inflation Protected Securities Index Fund

Schwab Tax-Free Bond Fund^tm

Schwab California Tax-Free Bond Fund^tm

Schwab Money Funds

Schwab offers an array of money market funds¹. Choose from taxable or tax-advantaged alternatives. Many can be linked to your eligible Schwab account to “sweep” cash balances automatically, subject to availability, when you’re between investments. Or, for your larger cash reserves, choose one of our Value Advantage Investments^®.

¹ Investments in money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency and, although they seek to preserve the value of your investment at $1 per share, it is possible to lose money.

Investment Adviser

Charles Schwab Investment Management, Inc.

211 Main Street, San Francisco, CA 94105

Schwab Funds^®

1-800-407-0256

This report is not authorized for distribution to prospective investors

unless preceded or accompanied by a current prospectus.

^© 2015 Charles Schwab & Co., Inc. All rights reserved.

Member SIPC^®

Printed on recycled paper.

MFR34720-09

00143418

Semiannual report dated April 30, 2015, enclosed.

Schwab Balanced Fund^tm

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This wrapper is not part of the shareholder report.

Schwab Balanced Fund^tm

Semiannual Report

April 30, 2015

This page is intentionally left blank.

Schwab Balanced Fund

In This Report

Performance at a Glance	2
From the President	3
Fund Management	5
Performance and Fund Facts	6
Fund Expenses	7
Financial Statements and Portfolio Holdings	8
Financial Notes	13
Trustees and Officers	21
Glossary	25

Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: Charles Schwab & Co., Inc. (Schwab).

Performance at a Glance

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.csimfunds.com.

Total Return for the 6 Months Ended April 30, 2015
Schwab Balanced Fund (Ticker Symbol: SWOBX)	3.95%
Balanced Blended Index	3.48%
Fund Category: Morningstar Moderate Allocation	3.02%
Performance Details	page 6

Minimum Initial Investment¹ $ 100

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 components that make up the composite index may vary over time. For index definition, please see the Glossary.

Fund 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 Please see the fund’s prospectus for further detail and eligibility requirements.

2 Schwab Balanced Fund

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.

Dear Shareholder,

At Charles Schwab Investment Management, we design our investment products to serve as part of the foundation of an investor’s portfolio. Our Schwab Balanced Fund offers a diversified asset allocation to U.S. equity, fixed income, and cash and cash equivalents. The fund utilizes a fund-of-funds strategy and seeks to provide a mix of the growth opportunities of equity investing with the income opportunities of fixed income securities.

For the six-month reporting period ended April 30, 2015, the fund returned 4.0% compared with the 3.5% return of the fund’s internally calculated composite index, the Balanced Blended Index. This outperformance was due primarily to the positive performances of several of the actively-managed underlying funds.

In the U.S., equities performed well with the S&P 500 Index returning 4.4%. The U.S. dollar remained strong while the Federal Reserve (the Fed) left short-term interest rates historically low, though speculation surrounding a potential rate increase and the significant drop in oil prices contributed to heightened market volatility. Among fixed income securities, bond prices generally climbed, in part due to the Fed’s continued supportive monetary policies. These stimulative measures, combined with uncertainty around global economic growth, helped sustain demand for many government-backed securities. Reflecting these conditions, the U.S. bond market generated modest overall performances, where bonds with lower credit ratings outperformed Treasuries, and long-term bonds outperformed short-term bonds. The Barclays

 Asset Class Performance Comparison % returns during the six months ended 4/30/2015

This graph compares the performance of various asset classes during the report period. Final performance figures for the period are in the key below.

	4.40%	S&P 500® Index: measures U.S. large-cap stocks
	4.65%	Russell 2000® Index: measures U.S. small-cap stocks
	6.81%	MSCI EAFE® Index (Net): measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East
	2.06%	Barclays U.S. Aggregate Bond Index: measures the U.S. bond market
	0.01%	Barclays U.S. Treasury Bills 1-3 Months Index: measures short-term U.S. Treasury obligations

Index figures assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Past performance is not an indication of future results.

For index definitions, please see the Glossary.

Data source: Index provider websites and CSIM.

Nothing in this report represents a recommendation of a security by the investment adviser.

Management views and portfolio holdings may have changed since the report date.

Schwab Balanced Fund 3

From the President continued

For the six-month reporting period ended April 30, 2015, the fund returned 4.0% compared with the 3.5% return of the fund’s internally calculated composite index, the Balanced Blended Index.

U.S. Aggregate Bond Index, which broadly represents the performance of the U.S. bond market, returned 2.1% for the six-month reporting period.

For more information about the performance, holdings, and portfolio characteristics of the Schwab Balanced Fund, please continue reading this report. In addition, you can find further details about this fund by visiting our new website at www.csimfunds.com, which provides improved functionality, enhanced design, and access to industry insights. We are also happy to hear from you at 1-800-435-4000.

Sincerely,

For full definitions of the referenced indices, please see the Glossary

4 Schwab Balanced Fund

Fund Management

Zifan Tang, Ph.D., CFA, Managing Director and Head of Asset Allocation Strategies, leads the portfolio management team and has overall responsibility for all aspects of the management of the fund. She was appointed portfolio manager of the fund in February 2012. Prior to joining CSIM in 2012, Ms. Tang was a product manager at Thomson Reuters and, from 1997 to 2009, worked as a portfolio manager at Barclays Global Investors, which was subsequently acquired by BlackRock.

Schwab Balanced Fund 5

Schwab Balanced Fund

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Fund and Inception Date	6 Months			1 Year			5 Years			10 Years
Fund: Schwab Balanced Fund (11/18/96)		3.95	%		10.25	%		9.59	%		6.27	%
Balanced Blended Index		3.48	%		9.09	%		10.16	%		7.06	%
S&P 500® Index		4.40	%		12.98	%		14.33	%		8.32	%
Barclays U.S. Aggregate Bond Index		2.06	%		4.46	%		4.12	%		4.75	%
Fund Category: Morningstar Moderate Allocation		3.02	%		6.53	%		8.82	%		6.43	%

Fund Expense Ratios³: Net 0.62%; Gross 0.71%

 Statistics

Number of Holdings	6
Portfolio Turnover Rate4	2%

 Asset Class Weightings % of Investments

Equity Funds – Large-Cap	50.3%
Fixed-Income Funds – Intermediate-Term Bond	36.3%
Equity Funds – Small-Cap	10.4%
Money Market Funds	3.0%
Total	100.0%

 Top Holdings % of Net Assets^5,6

Schwab Core Equity Fund	35.0%
Schwab Total Bond Market Fund	24.7%
Laudus U.S. Large Cap Growth Fund	15.3%
Schwab Intermediate-Term Bond Fund	11.6%
Laudus Small-Cap MarketMasters Fund, Select Shares	10.3%
Total	96.9%

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 you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

From June 3, 2002 to February 28, 2008, the fund used a manager of managers strategy, and therefore its performance during this time does not reflect the fund’s current multi-fund strategy and may have been different if it did.

Portfolio holdings may have changed since the report date.

Small-company stocks are subject to greater volatility than many other asset classes.

The Laudus U.S. Large Cap Growth Fund is part of Laudus Trust and distributed by ALPS Distributors, Inc. The Laudus MarketMasters Funds are part of Schwab Capital Trust and distributed by Charles Schwab & Co., Inc.

1	Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or 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. Includes expenses of the underlying funds in which the fund invests. The annualized weighted average expense ratio of the underlying funds was 0.62%. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	This list is not a recommendation of any security by the investment adviser.
6	The holdings listed exclude any temporary liquidity investments.

6 Schwab Balanced 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 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 November 1, 2014 and held through April 30, 2015.

Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ¸ $1,000 = 8.6), then multiply the result by the number given for the 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 the 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, 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.

					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio1		Account Value		(Net of Expenses)		During Period2
	(Annualized)		at 11/1/14		at 4/30/15		11/1/14–4/30/15
Schwab Balanced Fund
Actual Return		0.00%	$	1,000.00	$	1,039.50	$	0.00
Hypothetical 5% Return		0.00%	$	1,000.00	$	1,024.80	$	0.00

1	Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights. The expenses incurred by the underlying funds in which the fund invests are not included in this ratio.
2	Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days of the period, and divided by the 365 days of the fiscal year.

Schwab Balanced Fund 7

Schwab Balanced Fund

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		15.56			14.28			12.51			11.61			11.00			9.99
Income (loss) from investment operations:
Net investment income (loss)1		0.13			0.16			0.14			0.19			0.17			0.17
Net realized and unrealized gains (losses)		0.47			1.33			1.85			0.88			0.63			1.03
Total from investment operations		0.60			1.49			1.99			1.07			0.80			1.20
Less distributions:
Distributions from net investment income		(0.34	)		(0.21	)		(0.22	)		(0.17	)		(0.19	)		(0.19	)
Distributions from net realized gains		(0.42	)		—			—			—			—			—
Total distributions		(0.76	)		(0.21	)		(0.22	)		(0.17	)		(0.19	)		(0.19	)
Net asset value at end of period		15.40			15.56			14.28			12.51			11.61			11.00
Total return (%)		3.95	2		10.52			16.13			9.36			7.28			12.08
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses3		—	4		0.00	5		0.00	5		0.00	5		0.00	5		0.00	5
Gross operating expenses3		0.07	4		0.09			0.10			0.16			0.16			0.20
Net investment income (loss)		1.68	4		1.09			1.06			1.54			1.52			1.67
Portfolio turnover rate		2	2		27			33			38			53			8
Net assets, end of period ($ x 1,000,000)		241			202			165			117			109			88

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ The expenses incurred by underlying funds in which the fund invests are not included in this ratio.

⁴ Annualized.

⁵ Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses and/or interest expense had not been incurred.

8 See financial notes

 Schwab Balanced Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.9%	Other Investment Companies		212,030,319		240,987,194
	99	.9%	Total Investments		212,030,319		240,987,194
	0	.1%	Other Assets and Liabilities, Net				202,120
	100	.0%	Net Assets				241,189,314

	Number		Value
Security	of Shares		($)
Other Investment Companies 99.9% of net assets
Equity Funds 60.6%
Large-Cap 50.3%
Laudus U.S. Large Cap Growth Fund *(a)		2,119,677		36,924,773
Schwab Core Equity Fund (a)		3,679,103		84,325,034
				121,249,807
Small-Cap 10.3%
Laudus Small-Cap MarketMasters Fund, Select Shares (a)		1,316,925		24,955,732
				146,205,539
Fixed-Income Funds 36.3%
Intermediate-Term Bond 36.3%
Schwab Intermediate-Term Bond Fund (a)		2,709,150		27,904,246
Schwab Total Bond Market Fund (a)		6,204,583		59,688,093
				87,592,339
Money Market Fund 3.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b)		7,189,316		7,189,316
Total Other Investment Companies
(Cost $212,030,319)				240,987,194
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $214,687,167 and the unrealized appreciation and depreciation were $26,300,027 and ($0), respectively, with a net unrealized appreciation of $26,300,027.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.
(b)	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 April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Other Investment Companies1		$240,987,194		$—		$—		$240,987,194
Total		$240,987,194		$—		$—		$240,987,194

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

See financial notes 9

 Schwab Balanced Fund

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated underlying funds, at value (cost $204,841,003)		$233,797,878
Investments in unaffiliated issuers, at value (cost $7,189,316)	+	7,189,316
Total investments, at value (cost $212,030,319)		240,987,194
Receivables:
Investments sold		410,000
Fund shares sold		533,195
Dividends		151,897
Due from investment adviser		2,549
Prepaid expenses	+	1,161
Total assets		242,085,996
Liabilities
Payables:
Investments bought		822,745
Fund shares redeemed		42,197
Accrued expenses	+	31,740
Total liabilities		896,682
Net Assets
Total assets		242,085,996
Total liabilities	−	896,682
Net assets		$241,189,314
Net Assets by Source
Capital received from investors		200,507,943
Distributions in excess of net investment income		(1,593,911	)
Net realized capital gains		13,318,407
Net unrealized capital appreciation		28,956,875
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$241,189,314		15,657,170			$15.40

10 See financial notes

 Schwab Balanced Fund

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated underlying funds		$1,860,695
Expenses
Shareholder reports		20,615
Professional fees		18,814
Transfer agent fees		13,744
Registration fees		13,057
Portfolio accounting fees		7,844
Independent trustees’ fees		3,594
Custodian fees		1,465
Other expenses	+	2,816
Total expenses		81,949
Expense reduction by CSIM	−	81,949
Net expenses	−	—
Net investment income		1,860,695
Realized and Unrealized Gains (Losses)
Realized capital gain distributions received from affiliated underlying funds		15,711,636
Net realized gains on sales of affiliated underlying funds	+	265,285
Net realized gains		15,976,921
Net change in unrealized appreciation (depreciation) on affiliated underlying funds	+	(9,352,068	)
Net realized and unrealized gains		6,624,853
Increase in net assets resulting from operations		$8,485,548

See financial notes 11

 Schwab Balanced Fund

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$1,860,695			$2,038,921
Net realized gains		15,976,921			9,604,665
Net change in unrealized appreciation (depreciation)	+	(9,352,068	)		7,261,754
Increase in net assets from operations		8,485,548			18,905,340
Distributions to Shareholders
Distributions from net investment income		(4,612,433	)		(2,313,152	)
Distributions from net realized gains	+	(5,780,880	)		—
Total distributions		($10,393,313	)		($2,313,152	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			3,438,948		$53,029,287			5,653,883		$82,981,901
Shares reinvested			628,361		9,532,242			147,616		2,143,378
Shares redeemed	+		(1,366,584	)	(21,027,997	)		(4,387,683	)	(64,959,175	)
Net transactions in fund shares			2,700,725		$41,533,532			1,413,816		$20,166,104
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			12,956,445		$201,563,547			11,542,629		$164,805,255
Total increase	+		2,700,725		39,625,767			1,413,816		36,758,292
End of period			15,657,170		$241,189,314			12,956,445		$201,563,547
Distributions in excess of net investment income/Net investment income not yet distributed					($1,593,911	)				$1,157,827

12 See financial notes

 Schwab Balanced Fund

Financial Notes, unaudited

1. Business Structure of the Fund:

Schwab Balanced Fund is a series of Schwab Capital Trust (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 Capital Trust (organized May 7, 1993)	Schwab Target 2010 Fund
Schwab Balanced Fund	Schwab Target 2015 Fund
Schwab S&P 500 Index Fund	Schwab Target 2020 Fund
Schwab Small-Cap Index Fund	Schwab Target 2025 Fund
Schwab Total Stock Market Index Fund	Schwab Target 2030 Fund
Schwab International Index Fund	Schwab Target 2035 Fund
Schwab MarketTrack All Equity Portfolio	Schwab Target 2040 Fund
Schwab MarketTrack Growth Portfolio	Schwab Target 2045 Fund
Schwab MarketTrack Balanced Portfolio	Schwab Target 2050 Fund
Schwab MarketTrack Conservative Portfolio	Schwab Target 2055 Fund
Laudus Small-Cap MarketMasters Fund	Schwab Fundamental US Large Company Index Fund
Laudus International MarketMasters Fund	Schwab Fundamental US Small Company Index Fund
Schwab Core Equity Fund	Schwab Fundamental International Large Company Index Fund
Schwab Dividend Equity Fund	Schwab Fundamental International Small Company Index Fund
Schwab Large-Cap Growth Fund	Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Small-Cap Equity Fund	Schwab Fundamental Global Real Estate Index Fund
Schwab Hedged Equity Fund	Schwab Monthly Income Fund - Moderate Payout
Schwab Financial Services Fund	Schwab Monthly Income Fund - Enhanced Payout
Schwab Health Care Fund	Schwab Monthly Income Fund - Maximum Payout
Schwab International Core Equity Fund

The Schwab Balanced Fund is a single class “fund of funds” which seeks to achieve its investment objective by investing in a diversified group of other Schwab and/or Laudus Funds, but also may invest in other unaffiliated, third party mutual funds, including exchange-traded funds (“ETFs”). In addition, the fund may invest a portion of its assets directly in equity and fixed-income securities to maintain its allocations.

The fund offers one share class. Shares are bought and sold (subject to a redemption fee, see financial note 8) 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 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 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 financial statements of the fund should be read in conjunction with the underlying funds’ financial statements. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed and available on the U.S. Securities and Exchange Commission’s (“SEC”) website at www.sec.gov or at the SEC’s Public Reference Room in Washington D.C.

(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 market 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.

13

 Schwab Balanced Fund

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

The fund values the securities in its portfolio every business day. The fund uses the following policies to value various types of securities:

•  Underlying funds: Mutual funds are valued at their respective NAVs.

•  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, 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. The 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 fund pursuant to the valuation procedures.

•  Short-term securities (60 days or less to maturity): A short-term security may be valued at its amortized cost when it approximates the security’s market value.

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. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

•  Level 3 — significant unobservable inputs (including the 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

14 

 Schwab Balanced Fund

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

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 April 30, 2015 are disclosed in the Portfolio Holdings.

(b) 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.

(c) Investment Income:

Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the fund records certain foreign security dividends on the day it learns of the ex-dividend date. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.

(d) Expenses:

Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to all funds within the trust generally are allocated among the funds in proportion to their average daily net assets. The fund bears its share of the allocable expenses of the underlying funds in which it invests. Such expenses are reflected in the net asset values of the underlying funds.

(e) Distributions to Shareholders:

The fund makes distributions from net investment income and net realized capital gains, if any, once a year.

(f) Custody Credit:

The fund has an arrangement with its custodian bank, State Street Bank and Trust Company (“State Street”), under which the fund may receive a credit for its uninvested cash balance to offset its custody fees and accounting fees. The credit amounts, if any, are disclosed in the Statement of Operations as a reduction to the fund’s operating expenses.

(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. Accordingly, the fund distributes substantially all of its net investment income and realized net 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.

15

 Schwab Balanced Fund

Financial Notes, unaudited (continued)

3. Risk Factors:

Investing in the fund may involve certain risks, as discussed in the fund’s prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.

Asset Allocation Risk. The fund is subject to asset allocation risk, which is the risk that the selection of the underlying funds and the allocation of the fund’s assets among the various asset classes and market segments will cause the fund to underperform other funds with a similar investment objective.

Affiliated Fund Risk. The investment adviser’s authority to select and substitute underlying funds from a variety of affiliated and unaffiliated mutual funds may create a conflict of interest because the fees paid to it by some underlying funds are higher than the fees paid by other underlying funds. However, the portfolio manager is a fiduciary to the fund and is legally obligated to act in the fund’s best interests when selecting underlying funds, without taking fees into consideration.

Market Risk. Equity and fixed income markets rise and fall daily. As with any investment whose performance is tied to these markets, the value of an investment in the fund will fluctuate, which means that an investor could lose money.

Underlying Fund Investment Risk. The value of an investment in the fund is based primarily on the prices of the underlying funds that the fund purchases. In turn, the price of each underlying fund is based on the value of its securities. The fund is subject to the performance and expenses of the underlying funds in which it invests. Before investing in the fund, investors should assess the risks associated with the underlying funds in which the fund may invest and the types of investments made by those underlying funds. These risks include any combination of the risks described below, although the fund’s exposure to a particular risk will be proportionate to the fund’s overall asset allocation and underlying fund allocation.

•  Investment Risk. An investment in an underlying fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund may experience losses with respect to its investment in an underlying fund. Further, there is no guarantee that an underlying fund will be able to achieve its objective.

•  Management Risk. Generally, the underlying funds are actively managed mutual funds. Any actively managed mutual fund is subject to the risk that its investment adviser (or sub-adviser(s)) will select or allocate assets that could cause the fund to underperform or otherwise not meet its objective. An underlying fund’s 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.

•  Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

•  Large- and Mid-Cap Risk. Both large- and mid-cap stocks tend to go in and out of favor based on market and economic conditions. However, stocks of mid-cap companies tend to be more vulnerable to adverse business or economic events than larger more established companies. During a period when large- and mid-cap U.S. stocks fall behind other types of investments — small-cap stocks, for instance — an underlying fund’s performance also will lag those investments.

•  Small-Cap Risk. Historically, small-cap stocks have been riskier than large- and mid-cap stocks, and their prices may move sharply, especially during market upturns and downturns. Small-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies. During a period when small-cap stocks fall behind other types of investments — large-cap and mid-cap stocks, for instance — an underlying fund’s performance also will lag those investments.

•  Growth Investing Risk. An underlying fund’s investments in growth stocks can be volatile. Growth companies usually invest a high portion of earnings in their businesses and may lack the dividends of value stocks that can cushion stock prices in a falling market. The prices of growth stocks are based largely on projections of the issuer’s future earnings and revenues. If a company’s earnings or revenues fall short of expectations, its stock price may fall dramatically. Growth stocks may also be more expensive relative to their earnings or assets compared to value or other stocks.

•  Fixed Income Risk. Interest rates rise and fall over time, which will affect an underlying fund’s yield and share price. Because interest rates in the United States and other countries are at, or near, historically low levels, a change in a central bank’s monetary policy or improving economic conditions may result in an increase in interest rates. A rise in interest rates could cause an underlying fund’s share price to fall. The credit quality of a portfolio investment could also cause an

16 

 Schwab Balanced Fund

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

underlying fund’s share price to fall. An underlying fund could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. Fixed income securities may be paid off earlier or later than expected. Either situation could cause an underlying fund to hold securities paying lower-than-market rates of interest, which could hurt the fund’s yield or share price. Below investment-grade bonds (junk bonds) involve greater credit risk, are more volatile, involve greater risk of price declines and may be more susceptible to economic downturns than investment-grade securities.

•  ETF Risk. When an underlying fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio of securities.

•  Money Market Risk. Although an underlying money market fund seeks to maintain a stable $1 net asset value, it is possible to lose money by investing in a money market fund. In addition, a money market fund is not designed to offer capital appreciation.

•  Foreign Investment Risk. An underlying fund’s investments in securities of foreign issuers may involve certain risks that are greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of the underlying fund’s investments, and could impair the underlying fund’s ability to meet its investment objective or invest in accordance with its investment strategy. To the extent an underlying fund’s investment in a single country or a limited number of countries represents a large percentage of the underlying fund’s assets, the underlying fund’s performance may be adversely affected by the economic, political and social conditions in those countries and it may be subject to increased price volatility.

•  Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Such countries often have less uniformity in accounting and reporting requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with an underlying fund’s investments in emerging market countries and, at times, it may be difficult to value such investments.

•  Derivatives Risk. An underlying 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. An underlying fund’s use of derivatives could reduce the underlying fund’s performance, increase volatility and could cause the fund to lose more than the principal amount invested. In addition, investments in derivatives may involve leverage, which means a small percentage of assets invested in derivatives can have a disproportionately large impact on an underlying fund. However, these risks are less severe when the underlying fund uses derivatives for hedging rather than to enhance the underlying fund’s returns or as a substitute for a position or security.

•  Leverage Risk. Certain underlying fund transactions, such as derivatives, short sales, reverse repurchase agreements, and mortgage dollar rolls, may give rise to a form of leverage and may expose an underlying fund to greater risk. Leverage tends to magnify the effect of any decrease or increase in the value of an underlying fund’s portfolio securities, which means even a small amount of leverage can have a disproportionately large impact on the underlying fund. The use of leverage may cause the underlying fund to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy its obligations.

•  Liquidity Risk. A particular investment may be difficult to purchase or sell. An underlying fund may be unable to sell illiquid securities at an advantageous time or price.

•  Portfolio Turnover Risk. Certain of the underlying funds may buy and sell portfolio securities actively. If they do, their portfolio turnover rate and transaction costs will rise, which may lower the underlying fund’s performance and may increase the likelihood of capital gain distributions.

17

 Schwab Balanced Fund

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

•  Securities Lending Risk. Certain underlying funds engage in securities lending, which involves the risk of loss of rights in the collateral or delay in recovery of the collateral if the borrower fails to return the security loaned or becomes insolvent.

•  Mortgage-Backed and Mortgage Pass-Through Securities Risk. Certain of the mortgage-backed securities in which an underlying 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 tend to increase in value less than other debt securities when interest rates decline, but are subject to similar risk of decline in market 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 primarily occur through to be announced (TBA) transactions. Default by or bankruptcy of a counterparty to a TBA transaction would expose an underlying 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 an underlying fund sells mortgage-backed securities to a dealer and simultaneously agrees to repurchase similar securities in the future at a predetermined price. An underlying 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.

Direct Investment Risk. The fund may invest a portion of its assets directly in equity and fixed income securities, as well as other mutual funds or ETFs, to maintain its asset allocations. The fund’s direct investment in these securities is subject to the same or similar risks as an underlying fund’s investment in the same security.

Please refer to the fund’s prospectus for a more complete description of the principal risks of investing in the fund.

4. Affiliates and Affiliated Transactions:

Charles Schwab Investment Management, Inc. (“CSIM” or the “investment adviser”), a wholly owned subsidiary of The Charles Schwab Corporation, serves as the fund’s investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement between CSIM and the trust.

The Board has adopted a Shareholder Servicing Plan (the “Plan”) on behalf of the fund. The Plan enables the fund to bear expenses relating to the provision by service providers, including Charles Schwab & Co., Inc. (a broker-dealer affiliate of CSIM, “Schwab”), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the fund. The fund is not subject to any fee under the Plan.

CSIM and its affiliates have agreed 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 to 0.00%.

The agreement to limit the fund’s total expenses charged is limited to the fund’s direct operating expenses and, therefore, does not apply to underlying fund fees and expenses, which are indirect expenses incurred by a fund through its investments in the underlying funds.

The fund may engage in certain transactions involving related parties. Pursuant to an exemptive order issued by the SEC, the fund may invest in other related funds. As of April 30, 2015, the Schwab Balanced Fund’s ownership percentages of other related funds’ shares are:

Laudus U.S. Large Cap Growth Fund	1.7%
Schwab Core Equity Fund	3.6%
Laudus Small-Cap MarketMasters Fund, Select Shares	12.6%
Schwab Intermediate-Term Bond Fund	7.9%
Schwab Total Bond Market Fund	4.6%

18 

 Schwab Balanced Fund

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2015.

	Balance							Balance				Realized		Distributions
	of Shares							of Shares		Market		Gains (Losses)		Received*
	Held at		Gross		Gross			Held at		Value at		11/01/14		11/01/14
Underlying Funds	10/31/14		Purchases		Sales			04/30/15		04/30/15		to 04/30/15		to 04/30/15
Laudus U.S. Large Cap Growth Fund		1,558,414		613,592		(52,329	)		2,119,677		$36,924,773		$81,633		$5,497,424
Schwab Core Equity Fund		2,825,465		899,344		(45,706	)		3,679,103		84,325,034		105,560		10,739,887
Laudus Small-Cap MarketMasters Fund, Select Shares		1,100,759		240,959		(24,793	)		1,316,925		24,955,732		53,517		471,110
Schwab Intermediate-Term Bond Fund		2,355,024		370,631		(16,505	)		2,709,150		27,904,246		1,816		277,503
Schwab Total Bond Market Fund		5,061,757		1,211,831		(69,005	)		6,204,583		59,688,093		22,759		586,407
Total											$233,797,878		$265,285		$17,572,331

* Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds.

Pursuant to an exemptive order issued by the SEC, the fund may enter into interfund borrowing and lending transactions with other funds in the Fund Complex. All loans are for temporary or emergency purposes only. The interest rate to be charged on a loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. 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. Borrowing from Banks:

The fund has access to custodian overdraft facilities, a committed line of credit of $150 million with State Street, an uncommitted line of credit of $100 million with Bank of America, N.A. and an uncommitted line of credit of $50 million with Brown Brothers Harriman & Co. The fund pays interest on the amount it borrows at rates that are negotiated periodically. The fund also pays an annual fee to State Street for the committed line of credit.

There were no borrowings from the lines of credit by the fund during the period. However, the fund may have utilized its 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.

7. Purchases and Sales/Maturities of Investment Securities:

For the period ended April 30, 2015, purchases and sales/maturities of securities (excluding short-term obligations) were as follows:

Purchases of Securities		Sales/Maturities of Securities
	$50,717,819		$3,350,000

19

 Schwab Balanced Fund

Financial Notes, unaudited (continued)

8. Redemption Fee:

The fund charges a 2.00% redemption fee on shares sold or exchanged within 30 days of the original purchase date. Such amounts are netted against redemption proceeds on the Statement of Changes in Net Assets. The redemption fees charged during the current and prior periods are:

Current Period		Prior Period
(11/1/14-4/30/15)		(11/1/13-10/31/14)
	$15,394		$8,259

9. Federal Income Taxes:

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2014, the fund had no capital loss carryforwards.

For the year ended October 31, 2014, the fund had capital loss carryforwards utilized as follows:

Capital loss carryforwards utilized $3,288,811

As of October 31, 2014, 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 period ended October 31, 2014, the fund did not incur any interest or penalties.

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.

20 

Trustees and Officers

The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the fund covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust. The Fund Complex includes 95 funds.

The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the fund’s Statement of Additional Information, which is available free by calling 1-800-435-4000.

 Independent Trustees

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served1)	During the Past Five Years	the Trustee	Other Directorships
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 and Laudus Institutional Trust since 2010)	Senior Fellow, The Hoover Institution at Stanford University (Oct. 1979 – present); Senior Fellow Stanford Institute for Economic Policy Research (2000 – present); Professor of Public Policy, Stanford University (1994 – present).	74	Director, Gilead Sciences, Inc. (2005 – present)
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Private Investor.	74	Director, Symantec Corporation (2003 – present) Director, Corcept Therapeutics Incorporated (2004 – present) Director, Adamas Pharmaceuticals, Inc. (2009 – present)
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Retired. Executive Vice President and General Manager of Small Business Group, Intuit, Inc. (financial software and services firm for consumers and small businesses) (Dec. 2008 – Sept. 2013)	74	Director, KLA-Tencor Corporation (2008 – present)

21

 Independent Trustees (continued)

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served1)	During the Past Five Years	the Trustee	Other Directorships
Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2015)	Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (May 2009 – present); Director, Asset International, Inc. (publisher of financial services information) (Jan. 2009 – Nov. 2014).	95	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 and Laudus Institutional Trust since 2010)	Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (Mar. 1990 –present).	74	Director, Eaton (2012 – present) Director and Chairman of the Audit Committee, Oneok Partners LP (2003 – 2013) Director, Oneok, Inc. (2009 – 2013) Lead Independent Director, Board of Cooper Industries (2002 – 2012)
Joseph H. Wender 1944 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010)	Senior Consultant, Goldman Sachs & Co., Inc. (investment banking and securities firm) (Jan. 2008 – present); Partner, Colgin Partners, LLC (vineyards) (Feb. 1998 – present).	74	Board Member and Chairman of the Audit Committee, Isis Pharmaceuticals (1994 – present)

22 

 Interested Trustees

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served)	During the Past Five Years	the Trustee	Other Directorships
Charles R. Schwab2 1937 Chairman and Trustee (Chairman and Trustee of The Charles Schwab Family of Funds since 1989; Schwab Investments since 1991; Schwab Capital Trust since 1993; Schwab Annuity Portfolios since 1994; Laudus Trust and Laudus Institutional Trust since 2010)	Chairman and Director, The Charles Schwab Corporation (1986 – present); Chairman and Director of Charles Schwab & Co., Inc. (1971 – present); Chairman and Director of Charles Schwab Investment Management, Inc. (1989 – present); Chairman and Director of Charles Schwab Bank (2003 – present); Chairman and Chief Executive Officer of Schwab (SIS) Holdings Inc. I and Schwab International Holdings, Inc. (1996 – present); and Director, Chairman and Chief Executive Officer, Schwab Holdings, Inc. (1979 – present).	74	Chairman and Director, The Charles Schwab Corporation (1986 – present) Director, Yahoo! Inc. (2014 – present)
Walter W. Bettinger II2 1960 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (2008 – present); Director, Charles Schwab Bank (2006 – present); and Director Schwab Holdings, Inc. (2008 – present).	95	Director, The Charles Schwab Corporation (2008 – present)

 Officers of the Trust

Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served3)	Principal Occupations During the Past Five Years
Marie Chandoha 1961 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (January 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – August 2010).
George Pereira 1964 Treasurer and Principal Financial Officer, Schwab Funds Treasurer and Chief Financial Officer, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust and Laudus Institutional Trust since 2006)	Senior Vice President and Chief Financial Officer (Nov. 2004 – present), Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present) and Schwab ETFs (Oct. 2009 – present); Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present).

23

 Officers of the Trust (continued)

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
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Equities, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009).
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Senior Managing Director, Global Head of Active Fixed-Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies Loomis, Sayles & Company (April 2006 – Jan. 2008).
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President (Sept. 2011 – present), Vice President (March 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present), Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds 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, Laudus Trust and Laudus Institutional Trust since 2005)	Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (March 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary, Schwab ETFs (Oct. 2009 – present).

1	Trustees remain in office until they resign, retire or are removed by shareholder vote. The Schwab and Laudus Funds’ retirement policy requires that independent trustees retire at age 72 or after twenty years as a trustee, whichever comes first. In addition, the retirement policy requires any independent trustee of Schwab Funds or Laudus Funds to retire from all Boards upon their required retirement date from either Board.
2	Mr. Schwab and Mr. Bettinger are Interested Trustees because they own stock of The Charles Schwab Corporation, the parent company of the investment adviser.
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 Boards.

.

24 

Glossary

asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.

asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.

Balanced Blended Index A custom blended index developed by CSIM that effective August 1, 2013 is composed of 50% S&P 500 Index, 10% Russell 2000 Index, 25% Barclays U.S. Aggregate Bond Index, 12% Barclays U.S. Intermediate Aggregate Bond Index and 3% Barclays U.S. Treasury Bills: 1 − 3 Months Index. Prior to August 1, 2013 the Balanced Blended Index was composed of 60% S&P 500 Index and 40% Barclays U.S. Aggregate Bond Index.

Barclays U.S. Aggregate Bond Index A broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-back securities (agency fixed-rate and hybrid ARM passthroughs), asset-backed securities, and commercial mortgage-backed securities.

Barclays U.S. Intermediate Aggregate Bond Index An index that represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.

Barclays U.S. Treasury Bills 1 − 3 Months Index An index that includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value.

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.

cap, capitalization See “market cap.”

capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.

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.

market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.

MSCI EAFE (Europe, Australasia, Far East) Index A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.

net asset value (NAV) The value of one share of a 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.

price-to-book ratio (P/B)  The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.

price-to-earnings ratio (P/E)  The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.

return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.

Russell 2000 Index An index that measures the performance of the small-cap segment of the U.S. equity universe. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

S&P 500 Index A market capitalization index that is designed to measure the performance of 500 leading publicly held companies in leading industries of the U.S. economy.

stock A share of ownership, or equity, in the issuing company.

total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.

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.

25

Notes

Notes

Notes

Schwab Funds^® offers you an extensive family of mutual funds, each one based on a clearly defined investment approach and using disciplined management strategies. The list at right shows all currently available Schwab Funds.

Whether you are an experienced investor or just starting out, Schwab Funds can help you achieve your financial goals. An investor should consider a fund’s investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information can be found in the fund’s prospectus. Please call 1-800-435-4000 for a prospectus and brochure 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.csimfunds.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-800-435-4000.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.csimfunds.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.

The Schwab Funds Family^®

Stock Funds

Schwab Core Equity Fund^tm

Schwab Dividend Equity Fund^tm

Schwab Large-Cap Growth Fund^tm

Schwab Small-Cap Equity Fund^tm

Schwab Hedged Equity Fund^tm

Schwab Financial Services Fund^tm

Schwab Health Care Fund^tm

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^tm

Schwab^® S&P 500 Index Fund

Schwab 1000 Index^® Fund

Schwab Small-Cap Index Fund^®

Schwab Total Stock Market Index Fund^®

Schwab International Index Fund^®

Asset Allocation Funds

Schwab Balanced Fund^tm

Schwab MarketTrack All Equity Portfolio^tm

Schwab MarketTrack Growth Portfolio^tm

Schwab MarketTrack Balanced Portfolio^tm

Schwab MarketTrack Conservative Portfolio^tm

Schwab Target 2010 Fund

Schwab Target 2015 Fund

Schwab Target 2020 Fund

Schwab Target 2025 Fund

Schwab Target 2030 Fund

Schwab Target 2035 Fund

Schwab Target 2040 Fund

Schwab Target 2045 Fund

Schwab Target 2050 Fund

Schwab Target 2055 Fund

Schwab^® Monthly Income Fund – Moderate Payout

Schwab^® Monthly Income Fund – Enhanced Payout

Schwab^® Monthly Income Fund – Maximum Payout

Bond Funds

Schwab Short-Term Bond Market Fund^tm

Schwab Intermediate-Term Bond Fund^tm

Schwab Total Bond Market Fund^tm

Schwab GNMA Fund^tm

Schwab^® Treasury Inflation Protected Securities Index Fund

Schwab Tax-Free Bond Fund^tm

Schwab California Tax-Free Bond Fund^tm

Schwab Money Funds

Schwab offers an array of money market funds¹. Choose from taxable or tax-advantaged alternatives. Many can be linked to your eligible Schwab account to “sweep” cash balances automatically, subject to availability, when you’re between investments. Or, for your larger cash reserves, choose one of our Value Advantage Investments^®.

¹ Investments in money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency and, although they seek to preserve the value of your investment at $1 per share, it is possible to lose money.

Investment Adviser

Charles Schwab Investment Management, Inc.

211 Main Street, San Francisco, CA 94105

Schwab Funds^®

1-800-407-0256

This report is not authorized for distribution to prospective investors

unless preceded or accompanied by a current prospectus.

^© 2015 Charles Schwab & Co., Inc. All rights reserved.

Member SIPC^®

Printed on recycled paper.

MFR34721-09

00143420

Semiannual report dated April 30, 2015, enclosed.

Schwab MarketTrack Portfolios ^®

Schwab MarketTrack

All Equity Portfolio^tm

Schwab MarketTrack

Growth Portfolio^tm

Schwab MarketTrack

Balanced Portfolio^tm

Schwab MarketTrack

Conservative Portfolio^tm

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Schwab MarketTrack Portfolios ^®

Semiannual Report

April 30, 2015

Schwab MarketTrack

All Equity Portfolio^tm

Schwab MarketTrack

Growth Portfolio^tm

Schwab MarketTrack

Balanced Portfolio^tm

Schwab MarketTrack

Conservative Portfolio^tm

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Schwab MarketTrack Portfolios^®

In This Report

Performance at a Glance	2
From the President	3
Portfolio Management	5
Performance and Fund Facts
Schwab MarketTrack All Equity Portfolio	6
Schwab MarketTrack Growth Portfolio	7
Schwab MarketTrack Balanced Portfolio	8
Schwab MarketTrack Conservative Portfolio	9
Fund Expenses	10
Financial Statements and Portfolio Holdings
Schwab MarketTrack All Equity Portfolio	11
Schwab MarketTrack Growth Portfolio	16
Schwab MarketTrack Balanced Portfolio	22
Schwab MarketTrack Conservative Portfolio	28
Financial Notes	34
Supplemental Information	46
Trustees and Officers	47
Glossary	51

Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: Charles Schwab & Co., Inc. (Schwab).

Performance at a Glance

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.csimfunds.com.

Total Return for the 6 Months Ended April 30, 2015
Schwab MarketTrack All Equity Portfolio (Ticker Symbol: SWEGX)	4.61%
All Equity Composite Index	5.33%
Fund Category: Morningstar Large Blend	3.99%
Performance Details	page 6
Schwab MarketTrack Growth Portfolio (Ticker Symbol: SWHGX)	3.97%
Growth Composite Index	4.51%
Fund Category: Morningstar Aggressive Allocation	3.68%
Performance Details	page 7
Schwab MarketTrack Balanced Portfolio (Ticker Symbol: SWBGX)	3.43%
Balanced Composite Index	3.91%
Fund Category: Morningstar Moderate Allocation	3.02%
Performance Details	page 8
Schwab MarketTrack Conservative Portfolio (Ticker Symbol: SWCGX)	2.88%
Conservative Composite Index	3.28%
Fund Category: Morningstar Conservative Allocation	1.73%
Performance Details	page 9

Minimum Initial Investment¹ $ 100

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 components that make up each of the composite indices may vary over time. For index definitions, please see the Glossary.

Portfolio expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, a portfolio’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or on the redemption of portfolio 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 Please see the funds’ prospectus for further detail and eligibility requirements.

2 Schwab MarketTrack Portfolios

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.

Dear Shareholder,

At Charles Schwab Investment Management, we design our investment products to serve as part of the foundation of an investor’s portfolio. Our Schwab MarketTrack Portfolios combine Fundamental Index^® and market-cap index strategies, plus asset allocation, into individual portfolios by investing in a combination of other funds. The portfolios offer diversification across major segments of the U.S. stock market, in addition to international and bond exposure in select portfolios.

For the six-month reporting period ended April 30, 2015, the portfolios generated positive returns that generally tracked their comparative indices. The broad U.S. stock market benefitted from historically low short-term interest rates and overall positive corporate earnings reports, which contributed to several equity indices reaching record highs during the reporting period. The U.S. bond market also performed well overall, despite bouts of volatility surrounding speculation over the timing of a potential short-term interest rate rise by the Federal Reserve, as well as the fluctuations in the price of oil. The slight rebound in oil prices toward the end of the reporting period supported both stocks and bonds alike, with the S&P 500 Index and the Barclays U.S. Aggregate Bond Index returning 4.4% and 2.1%, respectively.

Global economic growth showed signs of improvement, resulting in many international developed stock markets rallying over the reporting period. Subsiding geopolitical tensions in Russia helped, as did relative stability in Greece and the eurozone. The U.S. dollar remained strong as many central

 Asset Class Performance Comparison % returns during the six months ended 4/30/2015

This graph compares the performance of various asset classes during the report period. Final performance figures for the period are in the key below.

	4.40%	S&P 500® Index: measures U.S. large-cap stocks
	4.65%	Russell 2000® Index: measures U.S. small-cap stocks
	6.81%	MSCI EAFE® Index (Net): measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East
	2.06%	Barclays U.S. Aggregate Bond Index: measures the U.S. bond market
	0.01%	Barclays U.S. Treasury Bills 1-3 Months Index: measures short-term U.S. Treasury obligations

Index figures assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Past performance is not an indication of future results.

For index definitions, please see the Glossary.

Data source: Index provider websites and CSIM.

Nothing in this report represents a recommendation of a security by the investment adviser.

Management views and portfolio holdings may have changed since the report date.

Schwab is a registered trademark of Charles Schwab & Co., Inc. Fundamental Index is a registered trademark of Research Affiliates LLC.

Schwab MarketTrack Portfolios 3

From the President continued

For the six-month reporting period ended April 30, 2015, the portfolios generated positive returns that generally tracked their comparative indices.

banks, including the European Central Bank and the Bank of Japan, increased economic measures to stimulate growth and combat threats of deflation. When the U.S. dollar rises against foreign currencies, returns on overseas investments will generally be reduced in U.S. dollar terms. However, as international markets performed particularly well this reporting period, returns on many of these investments were positive even when translated into U.S. dollars. Reflecting these conditions, the MSCI EAFE Index, which broadly represents the performance of international stocks, returned 6.8%¹ for the reporting period.

In product-related news, we have recently made several changes aimed at improving the portfolios’ overall diversification. Effective December 1, 2014, the portfolios added international small-cap equity and emerging markets equity as dedicated asset classes, and also began investing in the Schwab Fundamental Index Funds. Due to these changes, the portfolios currently have incurred capital gains. Please see the supplemental information on page 46 of this report for more details as of April 30, 2015. While the funds may seek to minimize capital gain distributions to shareholders, the funds may be required to distribute capital gains at the end of the year. Please consult your tax advisor regarding your specific situation. Further details about these portfolio changes, as well as additional information on the Schwab MarketTrack Portfolios, can be found on our new website at www.csimfunds.com, which provides improved functionality, enhanced design, and access to industry insights.

For more information about the performance, holdings, and portfolio characteristics of the Schwab MarketTrack Portfolios, please continue reading this report. We are also happy to hear from you at 1-800-435-4000.

Sincerely,

For full definitions of the referenced indices, please see the Glossary

¹ The total return cited is calculated net of foreign withholding taxes.

4 Schwab MarketTrack Portfolios

Portfolio Management

Zifan Tang, Ph.D., CFA, Managing Director and Head of Asset Allocation Strategies, leads the portfolio management team and has overall responsibility for all aspects of the management of the funds. She was appointed portfolio manager of the funds in February 2012. Prior to joining CSIM in 2012, Ms. Tang was a product manager at Thomson Reuters and, from 1997 to 2009, worked as a portfolio manager at Barclays Global Investors, which was subsequently acquired by BlackRock.

Schwab MarketTrack Portfolios 5

Schwab MarketTrack All Equity Portfolio

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Portfolio and Inception Date	6 Months			1 Year			5 Years			10 Years
Portfolio: Schwab MarketTrack All Equity Portfolio (5/19/98)		4.61	%		8.01	%		11.40	%		7.50	%
All Equity Composite Index		5.33	%		8.92	%		12.05	%		7.81	%
S&P 500® Index		4.40	%		12.98	%		14.33	%		8.32	%
Fund Category: Morningstar Large Blend		3.99	%		10.83	%		12.82	%		7.66	%

Fund Expense Ratio³: 0.64%

 Statistics

Number of Holdings	9
Portfolio Turnover Rate4	40%

 Asset Class Weightings % of Investments

Equity Funds – Large-Cap	44.4%
Equity Funds – International	30.5%
Equity Funds – Small-Cap	24.8%
Short-Term Investments	0.3%
Total	100.0%

 Top Holdings % of Net Assets^5,6

Schwab S&P 500 Index Fund	31.1%
Schwab Small-Cap Index Fund	17.2%
Schwab International Index Fund	14.1%
Schwab Fundamental U.S. Large Company Index Fund	13.3%
Schwab Fundamental U.S. Small Company Index Fund	7.5%
Schwab Fundamental International Large Company Index Fund	6.0%
Schwab Fundamental Emerging Markets Large Company Index Fund	5.3%
Schwab Fundamental International Small Company Index Fund	5.1%
Total	99.6%

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 you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

Small-company stocks are subject to greater volatility than many other asset classes.

International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.

1	Portfolio expenses have been partially absorbed by CSIM and its affiliates. Without these reductions, the portfolio’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio 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. Includes expenses of the underlying funds in which the portfolio invests. The annualized weighted average expense ratio of the underlying funds was 0.23%. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	This list is not a recommendation of any security by the investment adviser.
6	The holdings listed exclude any temporary liquidity investments.

6 Schwab MarketTrack Portfolios

Schwab MarketTrack Growth Portfolio

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Portfolio and Inception Date	6 Months			1 Year			5 Years			10 Years
Portfolio: Schwab MarketTrack Growth Portfolio (11/20/95)		3.97	%		7.54	%		10.08	%		6.89	%
Growth Composite Index		4.51	%		8.32	%		10.67	%		7.36	%
S&P 500® Index		4.40	%		12.98	%		14.33	%		8.32	%
Fund Category: Morningstar Aggressive Allocation		3.68	%		7.32	%		9.59	%		6.56	%

Fund Expense Ratio³: 0.64%

 Statistics

Number of Holdings	14
Portfolio Turnover Rate4	32%

 Asset Class Weightings % of Investments

Equity Funds – Large-Cap	39.5%
Equity Funds – International	20.7%
Equity Funds – Small-Cap	20.1%
Fixed-Income Funds – Intermediate-Term Bond	14.8%
Short-Term Investments	3.4%
Money Market Funds	1.5%
Total	100.0%

 Top Holdings % of Net Assets^5,6

Schwab S&P 500 Index Fund	27.7%
Schwab Total Bond Market Fund	14.8%
Schwab Small-Cap Index Fund	14.0%
Schwab Fundamental U.S. Large Company Index Fund	11.8%
Schwab International Index Fund	9.7%
Schwab Fundamental U.S. Small Company Index Fund	6.1%
Schwab Fundamental International Large Company Index Fund	4.1%
Schwab Fundamental Emerging Markets Large Company Index Fund	3.5%
Schwab Fundamental International Small Company Index Fund	3.3%
Schwab Value Advantage Money Fund, Institutional Prime Shares	1.5%
Total	96.5%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

Small-company stocks are subject to greater volatility than many other asset classes.

International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.

1	Portfolio expenses have been partially absorbed by CSIM and its affiliates. Without these reductions, the portfolio’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio 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. Includes expenses of the underlying funds in which the portfolio invests. The annualized weighted average expense ratio of the underlying funds was 0.23%. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	This list is not a recommendation of any security by the investment adviser.
6	The holdings listed exclude any temporary liquidity investments.

Schwab MarketTrack Portfolios 7

Schwab MarketTrack Balanced Portfolio

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Portfolio and Inception Date	6 Months			1 Year			5 Years			10 Years
Portfolio: Schwab MarketTrack Balanced Portfolio (11/20/95)		3.43	%		6.66	%		8.49	%		6.02	%
Balanced Composite Index		3.91	%		7.34	%		9.09	%		6.82	%
S&P 500® Index		4.40	%		12.98	%		14.33	%		8.32	%
Barclays U.S. Aggregate Bond Index		2.06	%		4.46	%		4.12	%		4.75	%
Fund Category: Morningstar Moderate Allocation		3.02	%		6.53	%		8.82	%		6.43	%

Fund Expense Ratio³: 0.65%

 Statistics

Number of Holdings	14
Portfolio Turnover Rate4	27%

 Asset Class Weightings % of Investments

Fixed-Income Funds – Intermediate-Term Bond	34.7%
Equity Funds – Large-Cap	29.7%
Equity Funds – International	15.6%
Equity Funds – Small-Cap	15.0%
Short-Term Investments	3.5%
Money Market Funds	1.5%
Total	100.0%

 Top Holdings % of Net Assets^5,6

Schwab Total Bond Market Fund	34.7%
Schwab S&P 500 Index Fund	20.8%
Schwab Small-Cap Index Fund	10.5%
Schwab Fundamental U.S. Large Company Index Fund	8.9%
Schwab International Index Fund	7.3%
Schwab Fundamental U.S. Small Company Index Fund	4.5%
Schwab Fundamental International Large Company Index Fund	3.1%
Schwab Fundamental Emerging Markets Large Company Index Fund	2.7%
Schwab Fundamental International Small Company Index Fund	2.5%
Schwab Value Advantage Money Fund, Institutional Prime Shares	1.5%
Total	96.5%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

Small-company stocks are subject to greater volatility than many other asset classes.

International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.

1	Portfolio expenses have been partially absorbed by CSIM and its affiliates. Without these reductions, the portfolio’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio 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. Includes expenses of the underlying funds in which the portfolio invests. The annualized weighted average expense ratio of the underlying funds was 0.24%. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	This list is not a recommendation of any security by the investment adviser.
6	The holdings listed exclude any temporary liquidity investments.

8 Schwab MarketTrack Portfolios

Schwab MarketTrack Conservative Portfolio

Performance and Fund Facts as of 04/30/15

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.csimfunds.com.

 Average Annual Total Returns^1,2

Portfolio and Inception Date	6 Months			1 Year			5 Years			10 Years
Portfolio: Schwab MarketTrack Conservative Portfolio (11/20/95)		2.88	%		5.68	%		6.78	%		5.04	%
Conservative Composite Index		3.28	%		6.34	%		7.43	%		6.18	%
S&P 500® Index		4.40	%		12.98	%		14.33	%		8.32	%
Barclays U.S. Aggregate Bond Index		2.06	%		4.46	%		4.12	%		4.75	%
Fund Category: Morningstar Conservative Allocation		1.73	%		3.65	%		6.30	%		5.18	%

Fund Expense Ratio³: 0.70%

 Statistics

Number of Holdings	14
Portfolio Turnover Rate4	18%

 Asset Class Weightings % of Investments

Fixed-Income Funds – Intermediate-Term Bond	54.6%
Equity Funds – Large-Cap	19.7%
Equity Funds – International	10.5%
Equity Funds – Small-Cap	10.1%
Short-Term Investments	3.6%
Money Market Funds	1.5%
Total	100.0%

 Top Holdings % of Net Assets^5,6

Schwab Total Bond Market Fund	54.6%
Schwab S&P 500 Index Fund	13.8%
Schwab Small-Cap Index Fund	7.0%
Schwab Fundamental U.S. Large Company Index Fund	5.9%
Schwab International Index Fund	4.9%
Schwab Fundamental U.S. Small Company Index Fund	3.1%
Schwab Fundamental International Large Company Index Fund	2.1%
Schwab Fundamental Emerging Markets Large Company Index Fund	1.9%
Schwab Fundamental International Small Company Index Fund	1.7%
Schwab Value Advantage Money Fund, Institutional Prime Shares	1.5%
Total	96.5%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

Portfolio holdings may have changed since the report date.

Small-company stocks are subject to greater volatility than many other asset classes.

International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.

1	Portfolio expenses have been partially absorbed by CSIM and its affiliates. Without these reductions, the portfolio’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio 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. Includes expenses of the underlying funds in which the portfolio invests. The annualized weighted average expense ratio of the underlying funds was 0.26%. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual ratios during the period, refer to the financial highlights section of the financial statements.
4	Not annualized.
5	This list is not a recommendation of any security by the investment adviser.
6	The holdings listed exclude any temporary liquidity investments.

Schwab MarketTrack Portfolios 9

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 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 November 1, 2014 and held through April 30, 2015.

Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ¸ $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.

You may use this information to compare the ongoing costs of investing in a fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, 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.

					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio1		Account Value		(Net of Expenses)		During Period2
	(Annualized)		at 11/1/14		at 4/30/15		11/1/14–4/30/15
Schwab MarketTrack All Equity Portfolio
Actual Return		0.42%	$	1,000.00	$	1,046.10	$	2.13
Hypothetical 5% Return		0.42%	$	1,000.00	$	1,022.72	$	2.11
Schwab MarketTrack Growth Portfolio
Actual Return		0.42%	$	1,000.00	$	1,039.70	$	2.12
Hypothetical 5% Return		0.42%	$	1,000.00	$	1,022.72	$	2.11
Schwab MarketTrack Balanced Portfolio
Actual Return		0.42%	$	1,000.00	$	1,034.30	$	2.12
Hypothetical 5% Return		0.42%	$	1,000.00	$	1,022.72	$	2.11
Schwab MarketTrack Conservative Portfolio
Actual Return		0.44%	$	1,000.00	$	1,028.80	$	2.21
Hypothetical 5% Return		0.44%	$	1,000.00	$	1,022.62	$	2.21

1	Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights. The expenses incurred by the underlying funds in which the portfolios invest are not included in this ratio.
2	Expenses for each portfolio are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days of the period, and divided by the 365 days of the fiscal year.

10 Schwab MarketTrack Portfolios

Schwab MarketTrack All Equity Portfolio

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–		11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12		10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		17.17			15.99			12.79			11.52		11.30			9.82
Income (loss) from investment operations:
Net investment income (loss)		0.32	1		0.21			0.27			0.25		0.16			0.12
Net realized and unrealized gains (losses)		0.46			1.24			3.27			1.02		0.27			1.50
Total from investment operations		0.78			1.45			3.54			1.27		0.43			1.62
Less distributions:
Distributions from net investment income		(0.23	)		(0.27	)		(0.34	)		—		(0.21	)		(0.14	)
Net asset value at end of period		17.72			17.17			15.99			12.79		11.52			11.30
Total return (%)		4.61	2		9.12			28.37			11.02		3.76			16.62
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses3		0.42	4,5		0.50			0.50			0.50		0.50			0.50
Gross operating expenses3		0.43	4,5		0.51			0.52			0.54		0.53			0.54
Net investment income (loss)		3.71	4		1.24			1.84			1.93		1.37			1.14
Portfolio turnover rate		40	2		9			6			6		12			8
Net assets, end of period ($ x 1,000,000)		618			621			586			475		476			489

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ The expenses incurred by underlying funds in which the fund invests are not included in this ratio.

⁴ Annualized.

⁵ Effective December 1, 2014, the management fee was reduced. The ratio presented for the period ended 4/30/15 is a blended ratio. (See financial note 4)

See financial notes 11

 Schwab MarketTrack All Equity Portfolio

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.6%	Other Investment Companies		434,117,198		615,259,746
	0	.3%	Short-Term Investment		2,283,228		2,283,228
	99	.9%	Total Investments		436,400,426		617,542,974
	0	.1%	Other Assets and Liabilities, Net				337,081
	100	.0%	Net Assets				617,880,055

	Number		Value
Security	of Shares		($)
Other Investment Companies 99.6% of net assets
Equity Funds 99.6%
International 30.5%
Schwab Fundamental Emerging Markets Large Company Index Fund (a)		3,842,021		32,657,175
Schwab Fundamental International Large Company Index Fund (a)		4,171,879		37,213,162
Schwab Fundamental International Small Company Index Fund (a)		2,654,474		31,163,528
Schwab International Index Fund (a)		4,403,682		87,280,982
				188,314,847
Large-Cap 44.3%
Schwab Fundamental US Large Company Index Fund (a)		5,309,277		81,975,240
Schwab S&P 500 Index Fund (a)		5,860,955		192,004,870
				273,980,110
Small-Cap 24.8%
Schwab Fundamental US Small Company Index Fund (a)		3,463,398		46,444,167
Schwab Small-Cap Index Fund (a)		3,886,196		106,520,622
				152,964,789
Total Other Investment Companies
(Cost $434,117,198)				615,259,746
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investment 0.3% of net assets
Time Deposit 0.3%
Australia & New Zealand Banking Group Ltd.
0.03%, 05/01/15		2,283,228		2,283,228
Total Short-Term Investment
(Cost $2,283,228)				2,283,228
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $447,574,712 and the unrealized appreciation and depreciation were $169,968,262 and ($0), respectively, with a net unrealized appreciation of $169,968,262.

(a) Issuer is affiliated with the fund’s adviser.

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Other Investment Companies1		$615,259,746		$—		$—		$615,259,746
Short-Term Investment1		—		2,283,228		—		2,283,228
Total		$615,259,746		$2,283,228		$—		$617,542,974

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

12 See financial notes

 Schwab MarketTrack All Equity Portfolio

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated underlying funds, at value (cost $434,117,198)		$615,259,746
Investments in unaffiliated issuers, at value (cost $2,283,228)	+	2,283,228
Total investments, at value (cost $436,400,426)		617,542,974
Receivables:
Investments sold		1,630,000
Fund shares sold		344,260
Prepaid expenses	+	5,432
Total assets		619,522,666
Liabilities
Payables:
Investments bought		1,220,000
Investment adviser and administrator fees		15,657
Shareholder service fees		30,029
Fund shares redeemed		359,834
Accrued expenses	+	17,091
Total liabilities		1,642,611
Net Assets
Total assets		619,522,666
Total liabilities	−	1,642,611
Net assets		$617,880,055
Net Assets by Source
Capital received from investors		402,424,517
Net investment income not yet distributed		11,354,399
Net realized capital gains		22,958,591
Net unrealized capital appreciation		181,142,548
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$617,880,055		34,863,701			$17.72

See financial notes 13

 Schwab MarketTrack All Equity Portfolio

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated underlying funds		$12,651,936
Interest	+	367
Total investment income		12,652,303
Expenses
Investment adviser and administrator fees		448,850
Shareholder service fees		743,456
Shareholder reports		36,203
Professional fees		18,839
Transfer agent fees		17,921
Portfolio accounting fees		13,591
Registration fees		11,329
Custodian fees		6,308
Independent trustees’ fees		4,523
Other expenses	+	11,464
Total expenses		1,312,484
Expense reduction by CSIM and its affiliates	−	17,921
Net expenses	−	1,294,563
Net investment income		11,357,740
Realized and Unrealized Gains (Losses)
Realized capital gain distributions received from affiliated underlying funds		8,408,971
Net realized gains on sales of affiliated underlying funds	+	58,475,453
Net realized gains		66,884,424
Net change in unrealized appreciation (depreciation) on investments	+	(50,382,862	)
Net realized and unrealized gains		16,501,562
Increase in net assets resulting from operations		$27,859,302

14 See financial notes

 Schwab MarketTrack All Equity Portfolio

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$11,357,740			$7,579,810
Net realized gains		66,884,424			16,907,766
Net change in unrealized appreciation (depreciation)	+	(50,382,862	)		28,397,026
Increase in net assets from operations		27,859,302			52,884,602
Distributions to Shareholders
Distributions from net investment income		($8,349,307	)		($9,729,315	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			1,588,393		$27,515,849			3,783,484		$62,639,443
Shares reinvested			449,055		7,719,249			553,923		9,089,878
Shares redeemed	+		(3,340,101	)	(57,805,648	)		(4,817,645	)	(80,084,457	)
Net transactions in fund shares			(1,302,653	)	($22,570,550	)		(480,238	)	($8,355,136	)
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			36,166,354		$620,940,610			36,646,592		$586,140,459
Total increase or decrease	+		(1,302,653	)	(3,060,555	)		(480,238	)	34,800,151
End of period			34,863,701		$617,880,055			36,166,354		$620,940,610
Net investment income not yet distributed					$11,354,399					$8,345,966

See financial notes 15

Schwab MarketTrack Growth Portfolio

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		23.20			21.67			18.08			16.85			16.35			14.51
Income (loss) from investment operations:
Net investment income (loss)		0.35	1		0.27			0.34			0.30			0.24			0.19
Net realized and unrealized gains (losses)		0.55			1.57			3.60			1.35			0.51			1.95
Total from investment operations		0.90			1.84			3.94			1.65			0.75			2.14
Less distributions:
Distributions from net investment income		(0.35	)		(0.31	)		(0.35	)		(0.42	)		(0.25	)		(0.30	)
Distributions from net realized gains		(0.39	)		—			—			—			—			—
Total distributions		(0.74	)		(0.31	)		(0.35	)		(0.42	)		(0.25	)		(0.30	)
Net asset value at end of period		23.36			23.20			21.67			18.08			16.85			16.35
Total return (%)		3.97	2		8.55			22.14			10.03			4.55			14.86
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses3		0.42	4,5		0.50			0.50			0.50			0.50			0.50
Gross operating expenses3		0.42	4,5		0.51			0.52			0.53			0.52			0.52
Net investment income (loss)		3.07	4		1.20			1.71			1.78			1.39			1.25
Portfolio turnover rate		32	2		7			9			9			17			14
Net assets, end of period ($ x 1,000,000)		757			734			680			566			562			549

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ The expenses incurred by underlying funds in which the fund invests are not included in this ratio.

⁴ Annualized.

⁵ Effective December 1, 2014, the management fee was reduced. The ratio presented for the period ended 4/30/15 is a blended ratio. (See financial note 4)

16 See financial notes

 Schwab MarketTrack Growth Portfolio

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	96	.5%	Other Investment Companies		487,276,668		730,198,318
	3	.4%	Short-Term Investments		26,121,167		26,121,167
	99	.9%	Total Investments		513,397,835		756,319,485
	0	.1%	Other Assets and Liabilities, Net				473,046
	100	.0%	Net Assets				756,792,531

	Number		Value
Security	of Shares		($)
Other Investment Companies 96.5% of net assets
Equity Funds 80.2%
International 20.6%
Schwab Fundamental Emerging Markets Large Company Index Fund (a)		3,163,941		26,893,502
Schwab Fundamental International Large Company Index Fund (a)		3,488,512		31,117,523
Schwab Fundamental International Small Company Index Fund (a)		2,148,678		25,225,480
Schwab International Index Fund (a)		3,686,128		73,059,050
				156,295,555
Large-Cap 39.5%
Schwab Fundamental US Large Company Index Fund (a)		5,780,480		89,250,612
Schwab S&P 500 Index Fund (a)		6,400,335		209,674,975
				298,925,587
Small-Cap 20.1%
Schwab Fundamental US Small Company Index Fund (a)		3,434,736		46,059,813
Schwab Small-Cap Index Fund (a)		3,868,758		106,042,658
				152,102,471
				607,323,613
Fixed-Income Fund 14.8%
Intermediate-Term Bond 14.8%
Schwab Total Bond Market Fund (a)		11,623,873		111,821,660
Money Market Fund 1.5%
Schwab Value Advantage Money Fund, Institutional Prime Shares 0.04% (a)(b)		11,053,045		11,053,045
Total Other Investment Companies
(Cost $487,276,668)				730,198,318
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investments 3.4% of net assets
Time Deposits 3.4%
Australia & New Zealand Banking Group Ltd.
0.03%, 05/01/15		7,641,437		7,641,437
Sumitomo Mitsui Banking Corp.
0.03%, 05/01/15		3,196,856		3,196,856
DNB
0.03%, 05/01/15		7,641,437		7,641,437
JPMorgan Chase Bank
0.03%, 05/01/15		7,641,437		7,641,437
Total Short-Term Investments
(Cost $26,121,167)				26,121,167
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $516,396,286 and the unrealized appreciation and depreciation were $239,923,199 and ($0), respectively, with a net unrealized appreciation of $239,923,199.

(a)	Issuer is affiliated with the fund’s adviser.
(b)	The rate shown is the 7-day yield.

See financial notes 17

 Schwab MarketTrack Growth Portfolio

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Other Investment Companies1		$730,198,318		$—		$—		$730,198,318
Short-Term Investments1		—		26,121,167		—		26,121,167
Total		$730,198,318		$26,121,167		$—		$756,319,485

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

18 See financial notes

 Schwab MarketTrack Growth Portfolio

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated underlying funds, at value (cost $487,276,668)		$730,198,318
Investments in unaffiliated issuers, at value (cost $26,121,167)	+	26,121,167
Total investments, at value (cost $513,397,835)		756,319,485
Receivables:
Investments sold		3,170,000
Fund shares sold		415,696
Dividends		200,420
Interest		22
Prepaid expenses	+	8,339
Total assets		760,113,962
Liabilities
Payables:
Investments bought		2,940,011
Investment adviser and administrator fees		19,137
Shareholder service fees		36,904
Fund shares redeemed		305,870
Accrued expenses	+	19,509
Total liabilities		3,321,431
Net Assets
Total assets		760,113,962
Total liabilities	−	3,321,431
Net assets		$756,792,531
Net Assets by Source
Capital received from investors		446,280,426
Distributions in excess of net investment income		(785,869	)
Net realized capital gains		68,376,324
Net unrealized capital appreciation		242,921,650
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$756,792,531		32,392,987			$23.36

See financial notes 19

 Schwab MarketTrack Growth Portfolio

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated underlying funds		$12,903,014
Interest	+	3,867
Total investment income		12,906,881
Expenses
Investment adviser and administrator fees		540,760
Shareholder service fees		901,669
Shareholder reports		34,196
Professional fees		19,577
Transfer agent fees		17,688
Portfolio accounting fees		14,534
Registration fees		13,005
Custodian fees		7,018
Independent trustees’ fees		4,792
Other expenses	+	13,627
Total expenses		1,566,866
Expense reduction by CSIM and its affiliates	−	17,688
Net expenses	−	1,549,178
Net investment income		11,357,703
Realized and Unrealized Gains (Losses)
Realized capital gain distributions received from affiliated underlying funds		8,055,089
Net realized gains on sales of affiliated underlying funds		64,816,932
Net realized gains on unaffiliated investments	+	2,788
Net realized gains		72,874,809
Net change in unrealized appreciation (depreciation) on investments	+	(55,097,373	)
Net realized and unrealized gains		17,777,436
Increase in net assets resulting from operations		$29,135,139

20 See financial notes

 Schwab MarketTrack Growth Portfolio

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$11,357,703			$8,557,275
Net realized gains		72,874,809			15,151,167
Net change in unrealized appreciation (depreciation)	+	(55,097,373	)		34,299,920
Increase in net assets from operations		29,135,139			58,008,362
Distributions to Shareholders
Distributions from net investment income		(11,176,663	)		(9,625,225	)
Distributions from net realized gains	+	(12,409,011	)		—
Total distributions		($23,585,674	)		($9,625,225	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			1,928,871		$44,633,451			3,913,595		$87,721,647
Shares reinvested			977,376		22,303,738			411,732		9,099,268
Shares redeemed	+		(2,137,506	)	(49,385,438	)		(4,084,279	)	(91,729,964	)
Net transactions in fund shares			768,741		$17,551,751			241,048		$5,090,951
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			31,624,246		$733,691,315			31,383,198		$680,217,227
Total increase	+		768,741		23,101,216			241,048		53,474,088
End of period			32,392,987		$756,792,531			31,624,246		$733,691,315
Distributions in excess of net investment income					($785,869	)				($966,909	)

See financial notes 21

Schwab MarketTrack Balanced Portfolio

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		19.50			18.55			16.33			15.41			14.96			13.54
Income (loss) from investment operations:
Net investment income (loss)		0.26	1		0.26			0.31			0.29			0.25			0.23
Net realized and unrealized gains (losses)		0.39			1.08			2.23			1.01			0.46			1.50
Total from investment operations		0.65			1.34			2.54			1.30			0.71			1.73
Less distributions:
Distributions from net investment income		(0.30	)		(0.27	)		(0.32	)		(0.38	)		(0.26	)		(0.31	)
Distributions from net realized gains		(0.34	)		(0.12	)		—			—			—			—
Total distributions		(0.64	)		(0.39	)		(0.32	)		(0.38	)		(0.26	)		(0.31	)
Net asset value at end of period		19.51			19.50			18.55			16.33			15.41			14.96
Total return (%)		3.43	2		7.28			15.82			8.61			4.80			12.92
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses3		0.42	4,5		0.50			0.50			0.50			0.50			0.50
Gross operating expenses3		0.43	4,5		0.51			0.52			0.53			0.52			0.52
Net investment income (loss)		2.70	4		1.30			1.75			1.86			1.64			1.59
Portfolio turnover rate		27	2		16			12			12			25			22
Net assets, end of period ($ x 1,000,000)		533			522			481			425			432			450

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ The expenses incurred by underlying funds in which the fund invests are not included in this ratio.

⁴ Annualized.

⁵ Effective December 1, 2014, the management fee was reduced. The ratio presented for the period ended 4/30/15 is a blended ratio. (See financial note 4)

22 See financial notes

 Schwab MarketTrack Balanced Portfolio

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	96	.5%	Other Investment Companies		378,504,766		514,493,642
	3	.5%	Short-Term Investments		18,627,415		18,627,415
	100	.0%	Total Investments		397,132,181		533,121,057
	(0	.0%)	Other Assets and Liabilities, Net				(61,923	)
	100	.0%	Net Assets				533,059,134

	Number		Value
Security	of Shares		($)
Other Investment Companies 96.5% of net assets
Equity Funds 60.3%
International 15.6%
Schwab Fundamental Emerging Markets Large Company Index Fund (a)		1,701,634		14,463,893
Schwab Fundamental International Large Company Index Fund (a)		1,840,588		16,418,048
Schwab Fundamental International Small Company Index Fund (a)		1,139,436		13,376,983
Schwab International Index Fund (a)		1,965,239		38,951,033
				83,209,957
Large-Cap 29.7%
Schwab Fundamental US Large Company Index Fund (a)		3,058,509		47,223,383
Schwab S&P 500 Index Fund (a)		3,386,377		110,937,696
				158,161,079
Small-Cap 15.0%
Schwab Fundamental US Small Company Index Fund (a)		1,798,069		24,112,104
Schwab Small-Cap Index Fund (a)		2,045,835		56,076,339
				80,188,443
				321,559,479
Fixed-Income Fund 34.7%
Intermediate-Term Bond 34.7%
Schwab Total Bond Market Fund (a)		19,220,259		184,898,891
Money Market Fund 1.5%
Schwab Value Advantage Money Fund, Institutional Prime Shares 0.04% (a)(b)		8,035,272		8,035,272
Total Other Investment Companies
(Cost $378,504,766)				514,493,642
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investments 3.5% of net assets
Time Deposits 3.5%
Australia & New Zealand Banking Group Ltd.
0.03%, 05/01/15		5,367,375		5,367,375
DNB
0.03%, 05/01/15		5,367,375		5,367,375
JPMorgan Chase Bank
0.03%, 05/01/15		5,367,375		5,367,375
Sumitomo Mitsui Banking Corp.
0.03%, 05/01/15		2,525,290		2,525,290
Total Short-Term Investments
(Cost $18,627,415)				18,627,415
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $404,502,628 and the unrealized appreciation and depreciation were $128,618,429 and ($0), respectively, with a net unrealized appreciation of $128,618,429.

(a)	Issuer is affiliated with the fund’s adviser.
(b)	The rate shown is the 7-day yield.

See financial notes 23

 Schwab MarketTrack Balanced Portfolio

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Other Investment Companies1		$514,493,642		$—		$—		$514,493,642
Short-Term Investments1		—		18,627,415		—		18,627,415
Total		$514,493,642		$18,627,415		$—		$533,121,057

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

24 See financial notes

 Schwab MarketTrack Balanced Portfolio

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated underlying funds, at value (cost $378,504,766)		$514,493,642
Investments in unaffiliated issuers, at value (cost $18,627,415)	+	18,627,415
Total investments, at value (cost $397,132,181)		533,121,057
Receivables:
Investments sold		770,000
Fund shares sold		636,738
Dividends		334,055
Interest		16
Prepaid expenses	+	6,519
Total assets		534,868,385
Liabilities
Payables:
Investments bought		1,533,551
Investment adviser and administrator fees		13,414
Shareholder service fees		26,359
Fund shares redeemed		213,515
Accrued expenses	+	22,412
Total liabilities		1,809,251
Net Assets
Total assets		534,868,385
Total liabilities	−	1,809,251
Net assets		$533,059,134
Net Assets by Source
Capital received from investors		353,257,487
Net investment income not yet distributed		303,908
Net realized capital gains		43,508,863
Net unrealized capital appreciation		135,988,876
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$533,059,134		27,323,650			$19.51

See financial notes 25

 Schwab MarketTrack Balanced Portfolio

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends		$8,035,027
Interest	+	2,665
Total investment income		8,037,692
Expenses
Investment adviser and administrator fees		376,808
Shareholder service fees		630,009
Shareholder reports		19,210
Professional fees		18,236
Transfer agent fees		13,886
Portfolio accounting fees		12,717
Registration fees		10,724
Custodian fees		5,663
Independent trustees’ fees		4,308
Other expenses	+	8,991
Total expenses		1,100,552
Expense reduction by CSIM and its affiliates	−	13,886
Net expenses	−	1,086,666
Net investment income		6,951,026
Realized and Unrealized Gains (Losses)
Realized capital gain distributions received from affiliated underlying funds		4,182,543
Net realized gains on sales of affiliated underlying funds		46,982,756
Net realized gains on unaffiliated investments	+	2,050
Net realized gains		51,167,349
Net change in unrealized appreciation (depreciation) on investments	+	(40,605,820	)
Net realized and unrealized gains		10,561,529
Increase in net assets resulting from operations		$17,512,555

26 See financial notes

 Schwab MarketTrack Balanced Portfolio

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$6,951,026			$6,710,856
Net realized gains		51,167,349			9,295,980
Net change in unrealized appreciation (depreciation)	+	(40,605,820	)		20,375,572
Increase in net assets from operations		17,512,555			36,382,408
Distributions to Shareholders
Distributions from net investment income		(7,938,877	)		(6,922,856	)
Distributions from net realized gains	+	(8,928,300	)		(3,022,728	)
Total distributions		($16,867,177	)		($9,945,584	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			2,424,080		$46,950,198			6,823,497		$128,625,138
Shares reinvested			823,113		15,729,696			501,199		9,312,269
Shares redeemed	+		(2,688,891	)	(52,132,690	)		(6,491,635	)	(123,488,301	)
Net transactions in fund shares			558,302		$10,547,204			833,061		$14,449,106
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			26,765,348		$521,866,552			25,932,287		$480,980,622
Total increase	+		558,302		11,192,582			833,061		40,885,930
End of period			27,323,650		$533,059,134			26,765,348		$521,866,552
Net investment income not yet distributed					$303,908					$1,291,759

See financial notes 27

Schwab MarketTrack Conservative Portfolio

Financial Statements

Financial Highlights

	11/1/14–			11/1/13–			11/1/12–			11/1/11–			11/1/10–			11/1/09–
	4/30/15*			10/31/14			10/31/13			10/31/12			10/31/11			10/31/10
Per-Share Data ($)
Net asset value at beginning of period		16.00			15.34			14.23			13.59			13.22			12.15
Income (loss) from investment operations:
Net investment income (loss)		0.19	1		0.23			0.26			0.26			0.25			0.24
Net realized and unrealized gains (losses)		0.27			0.67			1.10			0.69			0.37			1.08
Total from investment operations		0.46			0.90			1.36			0.95			0.62			1.32
Less distributions:
Distributions from net investment income		(0.19	)		(0.24	)		(0.25	)		(0.31	)		(0.25	)		(0.25	)
Net asset value at end of period		16.27			16.00			15.34			14.23			13.59			13.22
Total return (%)		2.88	2		5.95			9.71			7.07			4.72			10.98
Ratios/Supplemental Data (%)
Ratios to average net assets:
Net operating expenses3		0.44	4,5		0.50			0.50			0.50			0.50			0.50
Gross operating expenses3		0.45	4,5		0.54			0.55			0.55			0.55			0.56
Net investment income (loss)		2.32	4		1.43			1.78			1.96			1.84			1.93
Portfolio turnover rate		18	2		9			15			19			30			25
Net assets, end of period ($ x 1,000,000)		233			223			203			189			198			194

* Unaudited.

¹ Calculated based on the average shares outstanding during the period.

² Not annualized.

³ The expenses incurred by underlying funds in which the fund invests are not included in this ratio.

⁴ Annualized.

⁵ Effective December 1, 2014, the management fee was reduced. The ratio presented for the period ended 4/30/15 is a blended ratio. (See financial note 4)

28 See financial notes

 Schwab MarketTrack Conservative Portfolio

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund��s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	96	.5%	Other Investment Companies		180,769,477		224,889,935
	3	.6%	Short-Term Investments		8,358,495		8,358,495
	100	.1%	Total Investments		189,127,972		233,248,430
	(0	.1%)	Other Assets and Liabilities, Net				(310,689	)
	100	.0%	Net Assets				232,937,741

	Number		Value
Security	of Shares		($)
Other Investment Companies 96.5% of net assets
Equity Funds 40.4%
International 10.6%
Schwab Fundamental Emerging Markets Large Company Index Fund (a)		519,390		4,414,816
Schwab Fundamental International Large Company Index Fund (a)		541,013		4,825,840
Schwab Fundamental International Small Company Index Fund (a)		331,495		3,891,748
Schwab International Index Fund (a)		577,632		11,448,664
				24,581,068
Large-Cap 19.7%
Schwab Fundamental US Large Company Index Fund (a)		887,235		13,698,905
Schwab S&P 500 Index Fund (a)		984,273		32,244,779
				45,943,684
Small-Cap 10.1%
Schwab Fundamental US Small Company Index Fund (a)		537,303		7,205,231
Schwab Small-Cap Index Fund (a)		597,924		16,389,108
				23,594,339
				94,119,091
Fixed-Income Fund 54.6%
Intermediate-Term Bond 54.6%
Schwab Total Bond Market Fund (a)		13,231,044		127,282,646
Money Market Fund 1.5%
Schwab Value Advantage Money Fund, Institutional Prime Shares 0.04% (a)(b)		3,488,198		3,488,198
Total Other Investment Companies
(Cost $180,769,477)				224,889,935
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investments 3.6% of net assets
Time Deposits 3.6%
Australia & New Zealand Banking Group Ltd.
0.03%, 05/01/15		2,341,542		2,341,542
DNB
0.03%, 05/01/15		2,341,542		2,341,542
JPMorgan Chase Bank
0.03%, 05/01/15		2,341,542		2,341,542
Sumitomo Mitsui Banking Corp.
0.03%, 05/01/15		1,333,869		1,333,869
Total Short-Term Investments
(Cost $8,358,495)				8,358,495
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $195,920,198 and the unrealized appreciation and depreciation were $37,328,232 and ($0), respectively, with a net unrealized appreciation of $37,328,232.

(a)	Issuer is affiliated with the fund’s adviser.
(b)	The rate shown is the 7-day yield.

See financial notes 29

 Schwab MarketTrack Conservative Portfolio

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2015 (see financial note 2(a) for additional information):

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Other Investment Companies1		$224,889,935		$—		$—		$224,889,935
Short-Term Investments1		—		8,358,495		—		8,358,495
Total		$224,889,935		$8,358,495		$—		$233,248,430

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended April 30, 2015.

30 See financial notes

 Schwab MarketTrack Conservative Portfolio

Statement of

Assets and Liabilities

As of April 30, 2015; unaudited

Assets
Investments in affiliated underlying funds, at value (cost $180,769,477)		$224,889,935
Investments in unaffiliated issuers, at value (cost $8,358,495)	+	8,358,495
Total investments, at value (cost $189,127,972)		233,248,430
Receivables:
Investments sold		300,000
Dividends		230,469
Fund shares sold		135,522
Prepaid expenses	+	4,114
Total assets		233,918,535
Liabilities
Payables:
Investments bought		870,158
Investment adviser and administrator fees		5,854
Shareholder service fees		10,525
Fund shares redeemed		73,266
Accrued expenses	+	20,991
Total liabilities		980,794
Net Assets
Total assets		233,918,535
Total liabilities	−	980,794
Net assets		$232,937,741
Net Assets by Source
Capital received from investors		182,825,481
Net investment income not yet distributed		140,812
Net realized capital gains		5,850,990
Net unrealized capital appreciation		44,120,458
Net Asset Value (NAV)

		Shares
Net Assets	÷	Outstanding	=	NAV
$232,937,741		14,316,670			$16.27

See financial notes 31

 Schwab MarketTrack Conservative Portfolio

Statement of

Operations

For the period November 1, 2014 through April 30, 2015; unaudited

Investment Income
Dividends received from affiliated underlying funds		$3,104,075
Interest	+	1,167
Total investment income		3,105,242
Expenses
Investment adviser and administrator fees		164,519
Shareholder service fees		275,511
Professional fees		16,822
Transfer agent fees		12,346
Portfolio accounting fees		9,795
Shareholder reports		9,318
Registration fees		8,392
Independent trustees’ fees		3,634
Custodian fees		3,020
Other expenses	+	3,613
Total expenses		506,970
Expense reduction by CSIM and its affiliates	−	12,346
Net expenses	−	494,624
Net investment income		2,610,618
Realized and Unrealized Gains (Losses)
Realized capital gain distributions received from affiliated underlying funds		1,211,767
Net realized gains on sales of affiliated underlying funds		13,217,377
Net realized gains on unaffiliated investments	+	487
Net realized gains		14,429,631
Net change in unrealized appreciation (depreciation) on investments	+	(10,681,940	)
Net realized and unrealized gains		3,747,691
Increase in net assets resulting from operations		$6,358,309

32 See financial notes

 Schwab MarketTrack Conservative Portfolio

Statement of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited

Operations

11/1/14-4/30/15				11/1/13-10/31/14
Net investment income		$2,610,618			$3,094,773
Net realized gains		14,429,631			2,115,830
Net change in unrealized appreciation (depreciation)	+	(10,681,940	)		7,357,863
Increase in net assets from operations		6,358,309			12,568,466
Distributions to Shareholders
Distributions from net investment income		($2,620,229	)		($3,306,277	)

Transactions in Fund Shares

		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		VALUE			SHARES		VALUE
Shares sold			1,357,735		$21,939,623			2,855,381		$44,555,555
Shares reinvested			148,821		2,386,775			196,187		3,043,263
Shares redeemed	+		(1,148,888	)	(18,539,348	)		(2,297,937	)	(36,023,815	)
Net transactions in fund shares			357,668		$5,787,050			753,631		$11,575,003
Shares Outstanding and Net Assets
		11/1/14-4/30/15					11/1/13-10/31/14
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			13,959,002		$223,412,611			13,205,371		$202,575,419
Total increase	+		357,668		9,525,130			753,631		20,837,192
End of period			14,316,670		$232,937,741			13,959,002		$223,412,611
Net investment income not yet distributed					$140,812					$150,423

See financial notes 33

 Schwab MarketTrack Portfolios

Financial Notes, unaudited

1. Business Structure of the Funds:

Each of the funds in this report is a series of Schwab Capital Trust (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 Capital Trust (organized May 7, 1993)	Schwab Target 2010 Fund
Schwab MarketTrack All Equity Portfolio	Schwab Target 2015 Fund
Schwab MarketTrack Growth Portfolio	Schwab Target 2020 Fund
Schwab MarketTrack Balanced Portfolio	Schwab Target 2025 Fund
Schwab MarketTrack Conservative Portfolio	Schwab Target 2030 Fund
Schwab S&P 500 Index Fund	Schwab Target 2035 Fund
Schwab Small-Cap Index Fund	Schwab Target 2040 Fund
Schwab Total Stock Market Index Fund	Schwab Target 2045 Fund
Schwab International Index Fund	Schwab Target 2050 Fund
Laudus Small-Cap MarketMasters Fund	Schwab Target 2055 Fund
Laudus International MarketMasters Fund	Schwab Fundamental US Large Company Index Fund
Schwab Balanced Fund	Schwab Fundamental US Small Company Index Fund
Schwab Core Equity Fund	Schwab Fundamental International Large Company Index Fund
Schwab Dividend Equity Fund	Schwab Fundamental International Small Company Index Fund
Schwab Large-Cap Growth Fund	Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Small-Cap Equity Fund	Schwab Fundamental Global Real Estate Index Fund
Schwab Hedged Equity Fund	Schwab Monthly Income Fund - Moderate Payout
Schwab Financial Services Fund	Schwab Monthly Income Fund - Enhanced Payout
Schwab Health Care Fund	Schwab Monthly Income Fund - Maximum Payout
Schwab International Core Equity Fund

The Schwab MarketTrack Portfolios are primarily “fund of funds”. Each of the funds seeks to achieve its investment objective by investing mainly in a combination of other Schwab Funds (underlying funds) in accordance with its target portfolio allocation. The funds may also invest directly in equity or fixed-income securities, other mutual funds, exchange-traded funds (“ETFs”) and cash equivalents, including money market securities to achieve their investment objectives.

Each fund in this report offers one share class. Shares are bought and sold (subject to a redemption fee, see financial note 8) 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 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 financial statements of the funds should be read in conjunction with the underlying funds’ financial statements. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed and available on the U.S. Securities and Exchange Commission’s (“SEC”) website at www.sec.gov or at the SEC’s Public Reference Room in Washington D.C.

(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 market value. Among other things, these procedures allow the funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

34 

 Schwab MarketTrack Portfolios

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:

•  Underlying funds: Mutual funds are valued at their respective NAVs.

•  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.

•  Short-term securities (60 days or less to maturity): A short-term security may be valued at its amortized cost when it approximates the security’s market value.

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. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

•  Level 3 — significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and 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

35

 Schwab MarketTrack Portfolios

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

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 April 30, 2015 are disclosed in the Portfolio Holdings.

(b) 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.

(c) Investment Income:

Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the day they learn of the ex-dividend date. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.

(d) Expenses:

Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to all funds within the trust generally are allocated among the funds in proportion to their average daily net assets. Each fund bears its share of the allocable expenses of the underlying funds in which it invests. Such expenses are reflected in the net asset values of the underlying funds.

(e) Distributions to Shareholders:

The funds make distributions from net investment income and net realized capital gains, if any, once a year, except for the Schwab MarketTrack Conservative Portfolio, which makes distributions from net investment income quarterly.

(f) 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.

(g) Federal Income Taxes:

The funds intend to meet federal income and excise tax requirements for regulated investment companies. Accordingly, the funds distribute substantially all of their net investment income and realized net 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.

(h) 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.

3. Risk Factors:

Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.

Asset Allocation Risk. The funds are subject to asset allocation risk, which is the risk that the selection of the underlying funds and the allocation of a fund’s assets among the various asset classes and market segments will cause the funds to underperform other funds with a similar investment objective.

36 

 Schwab MarketTrack Portfolios

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

Affiliated Fund Risk. The investment adviser’s authority to select and substitute underlying funds from a variety of affiliated and unaffiliated mutual funds may create a conflict of interest because the fees paid to it by some underlying funds are higher than the fees paid by other underlying funds. However, the portfolio manager is a fiduciary to the fund and is legally obligated to act in the fund’s best interests when selecting underlying funds, without taking fees into consideration.

Market Risk. Stock and bond markets rise and fall daily. As with any investment whose performance is tied to these markets, the value of an investment in the funds will fluctuate, which means that an investor could lose money.

Underlying Fund Investment Risk. The value of your investment in the funds is based primarily on the prices of the underlying funds that the fund purchases. In turn, the price of each underlying fund is based on the value of its securities. The funds are subject to the performance and expenses of the underlying funds in which they invest. Before investing in the funds, investors should assess the risks associated with the underlying funds in which the funds may invest and the types of investments made by those underlying funds. These risks include any combination of the risks described below, although a fund’s exposure to a particular risk will be proportionate to the fund’s overall asset allocation and underlying fund allocation.

•  Investment Risk. An investment in an underlying fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The funds may experience losses with respect to their investment in an underlying fund. Further, there is no guarantee that an underlying fund will be able to achieve its objective.

•  Investment Style Risk. Some underlying funds seek to track the performance of various segments of the stock market, as measured by their respective indices. Each underlying fund follows these stocks during upturns as well as downturns. Because of their indexing strategy, the underlying funds do not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of an underlying fund’s expenses, the underlying fund’s performance is normally below that of the index.

•  Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

•  Tracking Error Risk. Each underlying index fund seeks to track the performance of its benchmark index, although it may not be successful in doing so. The divergence between the performance of a fund and its benchmark index, positive or negative, is called “tracking error.” Tracking error can be caused by many factors and it may be significant.

•  Large-Cap Risk. Many of the risks of the underlying funds are associated with their investment in the large-cap segments of the stock market. Large-cap stocks tend to go in and out of favor based on market and economic conditions. During a period when large-cap stocks fall behind other types of investments — bonds or mid- or small- cap stocks, for instance — an underlying fund’s performance also will lag those investments.

•  Small-Cap Risk. Historically, small-cap stocks have been riskier than large- and mid-cap stocks, and their prices may move sharply, especially during market upturns and downturns. Small-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies. During a period when small-cap stocks fall behind other types of investments — bonds or large-cap stocks, for instance — an underlying fund’s performance also will lag those investments.

•  Money Market Risk. Although an underlying money market fund seeks to maintain a stable $1 net asset value, it is possible to lose money by investing in a money market fund. In addition, a money market fund is not designed to offer capital appreciation.

•  Concentration Risk. To the extent that an underlying fund’s or the index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector, country or asset class, the underlying fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more susceptible to adverse economic, market, political, or regulatory occurrences affecting that market, industry, group of industries, sector, country or asset class.

•  Foreign Investment Risk. An underlying fund’s investments in securities of foreign issuers may involve certain risks that are greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in

37

 Schwab MarketTrack Portfolios

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of an underlying fund’s investments, and could impair an underlying fund’s ability to meet its investment objective or invest in accordance with its investment strategy. These risks may be heightened in connection with investments in emerging markets. Foreign securities also include American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”), which are receipts issued by U.S. and foreign banks that represent shares of foreign-based corporations. Investment in ADRs, GDRs and EDRs may be less liquid than the underlying shares in their primary trading market and GDRs, many of which are issued by companies in emerging markets, may be more volatile. To the extent an underlying fund’s investment in a single country or a limited number of countries represents a large percentage of the underlying fund’s assets, the underlying fund’s performance may be adversely affected by the economic, political and social conditions in those countries and it may be subject to increased price volatility.

•  Currency Risk. As a result of an underlying fund’s investments in securities denominated in, and/or receiving revenues in foreign currencies, the fund will be subject to currency risk. This is the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency hedged. In either event, the dollar value of an investment in an underlying fund would be adversely affected.

•  Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Such countries often have less uniformity in accounting and reporting requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with an underlying fund’s investments in emerging market countries and, at times, it may be difficult to value such investments.

•  Derivatives Risk. An underlying 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. An underlying fund’s use of derivatives could reduce the underlying fund’s performance, increase volatility, and could cause the fund to lose more than the initial amount invested. In addition, investments in derivatives may involve leverage, which means a small percentage of assets invested in derivatives can have a disproportionately large impact on an underlying fund. However, these risks are less severe when the underlying fund uses derivatives for hedging rather than to enhance the underlying fund’s returns or as a substitute for a position or security.

•  Exchange-Traded Funds (“ETFs”) Risk. When an underlying fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio of securities.

•  Debt Securities Risk. Bond prices generally fall when interest rates rise. Bonds with longer maturities tend to be more sensitive to this risk. Changes in interest rates also may affect the underlying fund’s share price: a rise in interest rates could cause the fund’s share price to fall. Because interest rates in the United States and other countries are at, or near, historically low levels, a change in a central bank’s monetary policy or improving economic conditions may result in an increase in interest rates. Underlying fund performance also could be affected if an issuer or guarantor of a bond held by the fund fails to make timely principal or interest payments or otherwise honor its obligations. Lower-quality bonds are considered speculative with respect to their issuer’s ability to make timely payments or otherwise honor their obligations. In addition, prices of lower-quality bonds tend to be more volatile than those of investment-grade bonds, and may fall based on bad news about the issuer, an industry or the overall economy.

•  Liquidity Risk. A particular investment may be difficult to purchase or sell. An underlying fund may be unable to sell illiquid securities at an advantageous time or price.

•  Securities Lending Risk. An underlying fund may lend its portfolio securities to brokers, dealers, and other financial institutions. Securities lending involves the risk of loss of rights in the collateral or delay in recovery of the collateral if the borrower fails to return the security loaned or becomes insolvent.

38 

 Schwab MarketTrack Portfolios

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

•  Portfolio Turnover Risk. Certain of the underlying funds may buy and sell portfolio securities actively. If they do, their portfolio turnover rate and transaction costs will rise, which may lower the underlying fund’s performance and may increase the likelihood of capital gain distributions.

Direct Investment Risk. A fund may invest directly in individual securities as well as other mutual funds, ETFs and cash equivalents, including money market securities. A fund’s direct investment in these securities is subject to the same or similar risks as an underlying fund’s investment in the same security.

Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.

4. Affiliates and Affiliated Transactions:

Charles Schwab Investment Management, Inc. (“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 CSIM and the trust.

For its advisory and administrative services to the funds, CSIM is entitled to receive an annual fee of 0.13% payable monthly based on a percentage of each fund’s average daily net assets.

Prior to December 1, 2014, the advisory fee was 0.23%.

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 service providers, including Charles Schwab & Co., Inc. (a broker-dealer affiliate of CSIM, “Schwab”), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the funds. Schwab serves as the funds’ paying agent under the Plan for making payments of the shareholder service fee due to the service providers (other than Schwab) under the Plan. All shareholder service fees paid by the funds to Schwab in its capacity as the funds’ paying agent will be passed through to the service providers, and Schwab will not retain any portion of such fees.

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 (or, in the case of payments made to Schwab, pursuant to Schwab’s written agreement with the funds). Payments under the Plan are made as described above regardless of Schwab’s or the service provider’s actual cost of providing the services. If the cost of providing the services under the Plan is less than the payments received, the unexpended portion of the fees may be retained as profit by Schwab or the service provider.

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”). The expense limitation as a percentage of average daily net assets is as follows:

Schwab		Schwab		Schwab		Schwab
MarketTrack		MarketTrack		MarketTrack		MarketTrack
All Equity		Growth		Balanced		Conservative
Portfolio		Portfolio		Portfolio		Portfolio
	0.50%		0.50%		0.50%		0.50%

The agreement to limit the funds’ total expenses charged is limited to each fund’s direct operating expenses and, therefore, does not apply to underlying fund fees and expenses, which are indirect expenses incurred by a fund through its investments in the underlying funds.

39

 Schwab MarketTrack Portfolios

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

The funds may engage in certain transactions involving related parties. Pursuant to an exemptive order issued by the SEC, the funds may invest in other related funds. As of April 30, 2015, each Schwab MarketTrack Portfolio’s ownership percentages of other related funds’ shares are:

	Schwab		Schwab		Schwab		Schwab
	MarketTrack		MarketTrack		MarketTrack		MarketTrack
	All Equity		Growth		Balanced		Conservative
Underlying Funds	Portfolio		Portfolio		Portfolio		Portfolio
Schwab Fundamental Emerging Markets Large Company Index Fund		8.1%		6.7%		3.6%		1.1%
Schwab Fundamental International Large Company Index Fund		3.4%		2.9%		1.5%		0.4%
Schwab Fundamental International Small Company Index Fund		7.8%		6.3%		3.4%		1.0%
Schwab International Index Fund		3.0%		2.5%		1.3%		0.4%
Schwab Fundamental U.S. Large Company Index Fund		1.6%		1.8%		0.9%		0.3%
Schwab S&P 500 Index Fund		0.9%		1.0%		0.5%		0.1%
Schwab Fundamental U.S. Small Company Index Fund		3.0%		3.0%		1.6%		0.5%
Schwab Small-Cap Index Fund		4.0%		3.9%		2.1%		0.6%
Schwab Total Bond Market Fund		—%		8.6%		14.2%		9.8%
Schwab Value Advantage Money Fund		—%		0.1%		0.1%		0.0%	*

* Less than 0.1%

Below is a summary of the funds’ transactions with their affiliated underlying funds during the period ended April 30, 2015.

Schwab MarketTrack All Equity Portfolio:
	Balance							Balance				Realized		Distributions
	of Shares							of Shares		Market		Gains (Losses)		Received*
	Held at		Gross		Gross			Held at		Value at		11/01/14		11/01/14
Underlying Funds	10/31/14		Purchases		Sales			04/30/15		04/30/15		to 04/30/15		to 04/30/15
Schwab Fundamental Emerging Markets Large Company Index Fund		—		4,003,170		(161,149	)		3,842,021		$32,657,175		$105,101		$—
Schwab Fundamental International Large Company Index Fund		—		4,347,026		(175,147	)		4,171,879		$37,213,162		126,596		—
Schwab Fundamental International Small Company Index Fund		—		2,690,114		(35,640	)		2,654,474		$31,163,528		15,069		—
Schwab International Index Fund		9,522,611		420,010		(5,538,939	)		4,403,682		$87,280,982		$9,774,775		$5,828,152
Schwab Fundamental U.S. Large Company Index Fund		—		5,424,834		(115,557	)		5,309,277		$81,975,240		36,323		—
Schwab S&P 500 Index Fund		8,701,477		166,666		(3,007,188	)		5,860,955		$192,004,870		36,190,771		4,944,916
Schwab Fundamental U.S. Small Company Index Fund		—		3,526,757		(63,359	)		3,463,398		$46,444,167		31,541		—
Schwab Small-Cap Index Fund		5,509,666		448,112		(2,071,582	)		3,886,196		$106,520,622		12,195,277		10,287,839
Total											$615,259,746		$58,475,453		$21,060,907

40 

 Schwab MarketTrack Portfolios

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Schwab MarketTrack Growth Portfolio:
	Balance							Balance				Realized		Distributions
	of Shares							of Shares		Market		Gains (Losses)		Received*
	Held at		Gross		Gross			Held at		Value at		11/01/14		11/01/14
Underlying Funds	10/31/14		Purchases		Sales			04/30/15		04/30/15		to 04/30/15		to 04/30/15
Schwab Fundamental Emerging Markets Large Company Index Fund		—		3,343,301		(179,360	)		3,163,941		$26,893,502		$142,249		$—
Schwab Fundamental International Large Company Index Fund		—		3,567,058		(78,546	)		3,488,512		31,117,523		42,117		—
Schwab Fundamental International Small Company Index Fund		—		2,155,641		(6,963	)		2,148,678		25,225,480		1,748		—
Schwab International Index Fund		7,441,640		391,778		(4,147,290	)		3,686,128		73,059,050		12,997,853		4,607,791
Schwab Fundamental U.S. Large Company Index Fund		—		5,913,162		(132,682	)		5,780,480		89,250,612		41,958		—
Schwab S&P 500 Index Fund		9,305,006		203,118		(3,107,789	)		6,400,335		209,674,975		40,056,012		5,325,253
Schwab Fundamental U.S. Small Company Index Fund		—		3,464,172		(29,436	)		3,434,736		46,059,813		14,399		—
Schwab Small-Cap Index Fund		5,229,959		471,135		(1,832,336	)		3,868,758		106,042,658		11,410,867		9,854,887
Schwab Total Bond Market Fund		11,309,453		995,287		(680,867	)		11,623,873		111,821,660		109,729		1,168,876
Schwab Value Advantage Money Fund, Institutional Prime Shares		11,051,882		1,163		—			11,053,045		11,053,045		—		1,296
Total											$730,198,318		$64,816,932		$20,958,103

41

 Schwab MarketTrack Portfolios

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Schwab MarketTrack Balanced Portfolio:
	Balance							Balance				Realized		Distributions
	of Shares							of Shares		Market		Gains (Losses)		Received*
	Held at		Gross		Gross			Held at		Value at		11/01/14		11/01/14
Underlying Funds	10/31/14		Purchases		Sales			04/30/15		04/30/15		to 04/30/15		to 04/30/15
Schwab Fundamental Emerging Markets Large Company Index Fund		—		1,794,093		(92,459	)		1,701,634		$14,463,893		$64,981		$—
Schwab Fundamental International Large Company Index Fund		—		1,890,384		(49,796	)		1,840,588		16,418,048		18,044		—
Schwab Fundamental International Small Company Index Fund		—		1,159,415		(19,979	)		1,139,436		13,376,983		3,636		—
Schwab International Index Fund		3,955,097		226,097		(2,215,955	)		1,965,239		$38,951,033		$8,587,729		$2,388,467
Schwab Fundamental U.S. Large Company Index Fund		—		3,144,255		(85,746	)		3,058,509		47,223,383		30,845		—
Schwab S&P 500 Index Fund		4,990,453		138,976		(1,743,052	)		3,386,377		110,937,696		31,178,965		2,779,634
Schwab Fundamental U.S. Small Company Index Fund		—		1,832,032		(33,963	)		1,798,069		24,112,104		16,631		—
Schwab Small-Cap Index Fund		2,792,568		266,744		(1,013,477	)		2,045,835		56,076,339		6,906,675		5,117,074
Schwab Total Bond Market Fund		18,994,620		1,461,215		(1,235,576	)		19,220,259		184,898,891		175,250		1,931,453
Schwab Value Advantage Money Fund, Institutional Prime Shares		8,034,427		845		—			8,035,272		8,035,272		—		942
Total											$514,493,642		$46,982,756		$12,217,570

42 

 Schwab MarketTrack Portfolios

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Schwab MarketTrack Conservative Portfolio:
	Balance							Balance				Realized		Distributions
	of Shares							of Shares		Market		Gains (Losses)		Received*
	Held at		Gross		Gross			Held at		Value at		11/01/14		11/01/14
Underlying Funds	10/31/14		Purchases		Sales			04/30/15		04/30/15		to 04/30/15		to 04/30/15
Schwab Fundamental Emerging Markets Large Company Index Fund		—		529,414		(10,024	)		519,390		$4,414,816		$4,116		$—
Schwab Fundamental International Large Company Index Fund		—		552,481		(11,468	)		541,013		4,825,840		5,963		—
Schwab Fundamental International Small Company Index Fund		—		335,920		(4,425	)		331,495		3,891,748		3,086		—
Schwab International Index Fund		1,118,477		79,287		(620,132	)		577,632		$11,448,664		$2,548,157		$688,612
Schwab Fundamental U.S. Large Company Index Fund		—		918,580		(31,345	)		887,235		13,698,905		5,748		—
Schwab S&P 500 Index Fund		1,436,471		51,792		(503,990	)		984,273		32,244,779		8,865,719		812,608
Schwab Fundamental U.S. Small Company Index Fund		—		541,015		(3,712	)		537,303		7,205,231		2,635		—
Schwab Small-Cap Index Fund		796,611		85,865		(284,552	)		597,924		16,389,108		1,725,177		1,482,520
Schwab Total Bond Market Fund		12,812,537		889,684		(471,177	)		13,231,044		127,282,646		56,776		1,331,693
Schwab Value Advantage Money Fund, Institutional Prime Shares		3,487,830		368		—			3,488,198		3,488,198		—		409
Total											$224,889,935		$13,217,377		$4,315,842

* Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds.

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 only. The interest rate to be charged on a loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. 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 a 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:

The funds have access to custodian overdraft facilities, a committed line of credit of $150 million with State Street Bank and Trust Company (“State Street”), an uncommitted line of credit of $100 million with Bank of America, N.A. and an uncommitted line of credit of $50 million with Brown Brothers Harriman & Co. The funds pay interest on the amounts they borrow at rates that are negotiated periodically. The funds also pay an annual fee to State Street for the committed line of credit.

There were no borrowings from the lines of credit by the funds during the period. However, the funds may have utilized their overdraft facility and incurred an interest expense, which is disclosed on a fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

43

 Schwab MarketTrack Portfolios

Financial Notes, unaudited (continued)

7. Purchases and Sales/Maturities of Investment Securities:

For the period ended April 30, 2015, purchases and sales/maturities of securities (excluding short-term obligations) were as follows:

	Purchases of Securities		Sales/Maturities of Securities
Schwab MarketTrack All Equity Portfolio		$243,520,908		$254,630,000
Schwab MarketTrack Growth Portfolio		244,087,141		231,855,000
Schwab MarketTrack Balanced Portfolio		140,796,085		136,930,000
Schwab MarketTrack Conservative Portfolio		46,497,865		39,945,000

8. Redemption Fee:

The funds charge a 2.00% redemption fee on shares sold or exchanged within 30 days of the original purchase date. Such amounts are netted against redemption proceeds on the Statement of Changes in Net Assets. The redemption fees charged during the current and prior periods are:

	Current Period		Prior Period
	(11/1/14-4/30/15)		(11/1/13-10/31/14)
Schwab MarketTrack All Equity Portfolio		$6,384		$12,743
Schwab MarketTrack Growth Portfolio		2,148		11,814
Schwab MarketTrack Balanced Portfolio		10,027		10,547
Schwab MarketTrack Conservative Portfolio		1,034		1,606

9. Federal Income Taxes:

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2014, the funds had capital loss carryforwards available to offset future net capital gains before the expiration dates as follows:

	Schwab		Schwab		Schwab		Schwab
	MarketTrack		MarketTrack		MarketTrack		MarketTrack
	All Equity		Growth		Balanced		Conservative
Expiration Date	Portfolio		Portfolio		Portfolio		Portfolio
October 31, 2017		$21,221,169		$—		$—		$838,110
October 31, 2018		8,349,147		—		—		—
Total		$29,570,316		$—		$—		$838,110

Qualified late-year losses are certain capital and ordinary losses which occur during the portion of a fund’s taxable year subsequent to October 31. A fund may elect to treat any portion of qualified late-year losses as arising during the first day of the next taxable year. For the year ended October 31, 2014, the funds had late-year ordinary losses deferred and capital loss carryforwards utilized as follows:

	Schwab		Schwab		Schwab		Schwab
	MarketTrack		MarketTrack		MarketTrack		MarketTrack
	All Equity		Growth		Balanced		Conservative
	Portfolio		Portfolio		Portfolio		Portfolio
Late-year ordinary losses deferred		$—		$966,909		$—		$—
Capital loss carryforwards utilized		15,999,065		1,536,411		—		2,025,327

As of October 31, 2014, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended October 31, 2014, the funds did not incur any interest or penalties.

44 

 Schwab MarketTrack Portfolios

Financial Notes, unaudited (continued)

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.

45

Supplemental Information

For the period 11/1/2014 to 4/30/2015, the portfolios have realized the following net capital gains per share:

	Realized Capital Gains
Portfolio Name	(per share)
MarketTrack All Equity Portfolio		$1.92
MarketTrack Growth Portfolio		2.25
MarketTrack Balanced Portfolio		1.87
MarketTrack Conservative Portfolio		1.01

Actual distributions will differ from the information provided above as a result of portfolio transactions and required tax adjustments through the end of the year.

This is provided to you for informational purposes and should not be considered tax advice. Please consult your tax advisor regarding your specific situation.

46 

Trustees and Officers

The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust. The Fund Complex includes 95 funds.

The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-800-435-4000.

 Independent Trustees

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served1)	During the Past Five Years	the Trustee	Other Directorships
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 and Laudus Institutional Trust since 2010)	Senior Fellow, The Hoover Institution at Stanford University (Oct. 1979 – present); Senior Fellow Stanford Institute for Economic Policy Research (2000 – present); Professor of Public Policy, Stanford University (1994 – present).	74	Director, Gilead Sciences, Inc. (2005 – present)
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Private Investor.	74	Director, Symantec Corporation (2003 – present) Director, Corcept Therapeutics Incorporated (2004 – present) Director, Adamas Pharmaceuticals, Inc. (2009 – present)
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Retired. Executive Vice President and General Manager of Small Business Group, Intuit, Inc. (financial software and services firm for consumers and small businesses) (Dec. 2008 – Sept. 2013)	74	Director, KLA-Tencor Corporation (2008 – present)

47

 Independent Trustees (continued)

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served1)	During the Past Five Years	the Trustee	Other Directorships
Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2015)	Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (May 2009 – present); Director, Asset International, Inc. (publisher of financial services information) (Jan. 2009 – Nov. 2014).	95	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 and Laudus Institutional Trust since 2010)	Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (Mar. 1990 –present).	74	Director, Eaton (2012 – present) Director and Chairman of the Audit Committee, Oneok Partners LP (2003 – 2013) Director, Oneok, Inc. (2009 – 2013) Lead Independent Director, Board of Cooper Industries (2002 – 2012)
Joseph H. Wender 1944 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust and Laudus Institutional Trust since 2010)	Senior Consultant, Goldman Sachs & Co., Inc. (investment banking and securities firm) (Jan. 2008 – present); Partner, Colgin Partners, LLC (vineyards) (Feb. 1998 – present).	74	Board Member and Chairman of the Audit Committee, Isis Pharmaceuticals (1994 – present)

48 

 Interested Trustees

Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served)	During the Past Five Years	the Trustee	Other Directorships
Charles R. Schwab2 1937 Chairman and Trustee (Chairman and Trustee of The Charles Schwab Family of Funds since 1989; Schwab Investments since 1991; Schwab Capital Trust since 1993; Schwab Annuity Portfolios since 1994; Laudus Trust and Laudus Institutional Trust since 2010)	Chairman and Director, The Charles Schwab Corporation (1986 – present); Chairman and Director of Charles Schwab & Co., Inc. (1971 – present); Chairman and Director of Charles Schwab Investment Management, Inc. (1989 – present); Chairman and Director of Charles Schwab Bank (2003 – present); Chairman and Chief Executive Officer of Schwab (SIS) Holdings Inc. I and Schwab International Holdings, Inc. (1996 – present); and Director, Chairman and Chief Executive Officer, Schwab Holdings, Inc. (1979 – present).	74	Chairman and Director, The Charles Schwab Corporation (1986 – present) Director, Yahoo! Inc. (2014 – present)
Walter W. Bettinger II2 1960 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer, The Charles Schwab Corporation and Charles Schwab & Co., Inc. (2008 – present); Director, Charles Schwab Bank (2006 – present); and Director Schwab Holdings, Inc. (2008 – present).	95	Director, The Charles Schwab Corporation (2008 – present)

 Officers of the Trust

Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served3)	Principal Occupations During the Past Five Years
Marie Chandoha 1961 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2010)	Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (January 2011 – present); Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – August 2010).
George Pereira 1964 Treasurer and Principal Financial Officer, Schwab Funds Treasurer and Chief Financial Officer, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust and Laudus Institutional Trust since 2006)	Senior Vice President and Chief Financial Officer (Nov. 2004 – present), Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present) and Schwab ETFs (Oct. 2009 – present); Director, Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present).

49

 Officers of the Trust (continued)

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
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Equities, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009).
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds, Laudus Funds and Schwab ETFs (June 2011 – present); Senior Managing Director, Global Head of Active Fixed-Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies Loomis, Sayles & Company (April 2006 – Jan. 2008).
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust since 2011)	Senior Vice President (Sept. 2011 – present), Vice President (March 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present), Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds 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, Laudus Trust and Laudus Institutional Trust since 2005)	Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (March 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary, Schwab ETFs (Oct. 2009 – present).

1	Trustees remain in office until they resign, retire or are removed by shareholder vote. The Schwab and Laudus Funds’ retirement policy requires that independent trustees retire at age 72 or after twenty years as a trustee, whichever comes first. In addition, the retirement policy requires any independent trustee of Schwab Funds or Laudus Funds to retire from all Boards upon their required retirement date from either Board.
2	Mr. Schwab and Mr. Bettinger are Interested Trustees because they own stock of The Charles Schwab Corporation, the parent company of the investment adviser.
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 Boards.

.

50 

Glossary

All Equity Composite Index A custom blended index developed by CSIM based on a comparable portfolio asset allocation and that effective December 1, 2014 is calculated using the following portion allocations: 31.4% S&P 500^® Index, 17.3% Russell 2000^® Index, 13.5% Russell Fundamental U.S. Large Company Index, 7.5% Russell Fundamental U.S. Small Company Index, 13.8% MSCI EAFE Index (Net), 6.0% Russell Fundamental Developed ex-U.S. Large Company Index (Net), 5.0% Russell Fundamental Developed ex-U.S. Small Company Index (Net), 5.0% Russell Fundamental Emerging Markets Large Company Index (Net), and 0.5% Barclays U.S. Treasury Bills: 1 − 3 Months Index. From March 1, 2014 to December 1, 2014, the index was comprised of 45% S&P 500 Index, 25% Russell 2000 Index and 30% MSCI EAFE Index (Net). On March 1, 2014, the combination of the S&P 500 Index and Russell 2000 Index replaced the Dow Jones U.S. Total Stock Market Index in the custom index. Prior to March 1, 2014, the index was comprised of 70% Dow Jones U.S. Total Stock Market Index and 30% MSCI EAFE (Net) Index. The components that make up the composite may vary over time.

asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.

asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.

Balanced Composite Index A custom blended index developed by CSIM based on a comparable portfolio asset allocation and that effective December 1, 2014 is calculated using the following portion allocations: 21.0% S&P 500^® Index, 10.5% Russell 2000^® Index, 9.0% Russell Fundamental U.S. Large Company Index, 4.5% Russell Fundamental U.S. Small Company Index, 7.0% MSCI EAFE Index (Net), 3.0% Russell Fundamental Developed ex-U.S. Large Company Index (Net), 2.5% Russell Fundamental Developed ex-U.S. Small Company Index (Net), 2.5% Russell Fundamental Emerging Markets Large Company Index (Net), 35.0% Barclays U.S. Aggregate Bond Index, and 5.0% Barclays U.S. Treasury Bills: 1 − 3 Months Index. From March 1, 2014 to December 1, 2014, the index was comprised of 30% S&P 500 Index, 15% Russell 2000 Index, 15% MSCI EAFE Index (Net), 35% Barclays U.S. Aggregate Bond Index, and 5% Barclays U.S. Treasury Bills: 1 − 3 Months Index. On March 1, 2014, the combination of the S&P 500 Index and Russell 2000 Index replaced the Dow Jones U.S. Total Stock Market Index in the custom index. Prior to March 1, 2014, the index was comprised of 45% Dow Jones U.S. Total Stock Market Index, 15% MSCI EAFE (Net) Index, 35% Barclays U.S. Aggregate Bond Index, and 5% Barclays U.S. Treasury Bills: 1 − 3 Months Index. The components that make up the composite may vary over time.

Barclays U.S. Aggregate Bond Index A broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-back securities (agency fixed-rate and hybrid ARM passthroughs), asset-backed securities, and commercial mortgage-backed securities.

Barclays U.S. Treasury Bills 1 − 3 Months Index An index that includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value.

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.

cap, capitalization See “market cap.”

capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.

Conservative Composite Index A custom blended index developed by CSIM based on a comparable portfolio asset allocation and that effective December 1, 2014 is calculated using the following portion allocations: 14.0% S&P 500^® Index, 7.0% Russell 2000^® Index, 6.0% Russell Fundamental U.S. Large Company Index, 3.0% Russell Fundamental U.S. Small Company Index, 4.6% MSCI EAFE Index (Net), 2.0% Russell Fundamental Developed ex-U.S. Large Company Index (Net), 1.7% Russell Fundamental Developed ex-U.S. Small Company Index (Net), 1.7% Russell Fundamental Emerging Markets Large Company Index (Net), 55.0% Barclays U.S. Aggregate Bond Index, and 5.0% Barclays U.S. Treasury Bills: 1 − 3 Months Index. From March 1, 2014 to December 1, 2014, the index was comprised of 20% S&P 500 Index, 10% Russell 2000 Index, 10% MSCI EAFE (Net) Index, 55% Barclays U.S. Aggregate Bond Index, and 5% Barclays U.S. Treasury Bills: 1 − 3 Months Index. On March 1, 2014, the combination of the S&P 500 Index and Russell 2000 Index replaced the Dow Jones U.S. Total Stock Market Index in the custom index. Prior to March 1, 2014, the index was comprised of 30% Dow Jones U.S. Total Stock Market Index, 10% MSCI EAFE (Net) Index, 55% Barclays U.S. Aggregate Bond Index, and 5% Barclays U.S. Treasury Bills: 1 − 3 Months Index. The components that make up the composite may vary over time.

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.

51

Growth Composite Index A custom blended index developed by CSIM based on a comparable portfolio asset allocation and that effective December 1, 2014 is calculated using the following portion allocations: 28.1% S&P 500^® Index, 14.0% Russell 2000^® Index, 12.0% Russell Fundamental U.S. Large Company Index, 6.0% Russell Fundamental U.S. Small Company Index, 9.3% MSCI EAFE Index (Net), 4.0% Russell Fundamental Developed ex-U.S. Large Company Index (Net), 3.3% Russell Fundamental Developed ex-U.S. Small Company Index (Net), 3.3% Russell Fundamental Emerging Markets Large Company Index (Net), 15.0% Barclays U.S. Aggregate Bond Index, and 5.0% Barclays U.S. Treasury Bills: 1 − 3 Months Index. From March 1, 2014 to December 1, 2014, the index was comprised of 40% S&P 500 Index, 20% Russell 2000 Index, 20% MSCI EAFE Index (Net), 15% Barclays U.S. Aggregate Bond Index, and 5% Barclays U.S. Treasury Bills: 1 − 3 Months Index. On March 1, 2014, the combination of the S&P 500 Index and Russell 2000 Index replaced the Dow Jones U.S. Total Stock Market Index in the custom index. Prior to March 1, 2014 the index was comprised of 60% Dow Jones U.S. Total Stock Market Index, 20% MSCI EAFE (Net) Index, 15% Barclays U.S. Aggregate Bond Index, and 5% Barclays U.S. Treasury Bills: 1 − 3 Months Index. The components that make up the composite may vary over time.

market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.

MSCI EAFE (Europe, Australasia, Far East) Index A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.

net asset value (NAV) The value of one share of a 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.

price-to-book ratio (P/B)  The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.

price-to-earnings ratio (P/E)  The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.

return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.

Russell 2000 Index An index that measures the performance of the small-cap segment of the U.S. equity universe. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

S&P 500 Index A market capitalization index that is designed to measure the performance of 500 leading publicly held companies in leading industries of the U.S. economy.

stock A share of ownership, or equity, in the issuing company.

total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.

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.

52 

Schwab Funds^® offers you an extensive family of mutual funds, each one based on a clearly defined investment approach and using disciplined management strategies. The list at right shows all currently available Schwab Funds.

Whether you are an experienced investor or just starting out, Schwab Funds can help you achieve your financial goals. An investor should consider a fund’s investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information can be found in the fund’s prospectus. Please call 1-800-435-4000 for a prospectus and brochure 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.csimfunds.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-800-435-4000.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.csimfunds.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.

The Schwab Funds Family^®

Stock Funds

Schwab Core Equity Fund^tm

Schwab Dividend Equity Fund^tm

Schwab Large-Cap Growth Fund^tm

Schwab Small-Cap Equity Fund^tm

Schwab Hedged Equity Fund^tm

Schwab Financial Services Fund^tm

Schwab Health Care Fund^tm

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^tm

Schwab^® S&P 500 Index Fund

Schwab 1000 Index^® Fund

Schwab Small-Cap Index Fund^®

Schwab Total Stock Market Index Fund^®

Schwab International Index Fund^®

Asset Allocation Funds

Schwab Balanced Fund^tm

Schwab MarketTrack All Equity Portfolio^tm

Schwab MarketTrack Growth Portfolio^tm

Schwab MarketTrack Balanced Portfolio^tm

Schwab MarketTrack Conservative Portfolio^tm

Schwab Target 2010 Fund

Schwab Target 2015 Fund

Schwab Target 2020 Fund

Schwab Target 2025 Fund

Schwab Target 2030 Fund

Schwab Target 2035 Fund

Schwab Target 2040 Fund

Schwab Target 2045 Fund

Schwab Target 2050 Fund

Schwab Target 2055 Fund

Schwab^® Monthly Income Fund – Moderate Payout

Schwab^® Monthly Income Fund – Enhanced Payout

Schwab^® Monthly Income Fund – Maximum Payout

Bond Funds

Schwab Short-Term Bond Market Fund^tm

Schwab Intermediate-Term Bond Fund^tm

Schwab Total Bond Market Fund^tm

Schwab GNMA Fund^tm

Schwab^® Treasury Inflation Protected Securities Index Fund

Schwab Tax-Free Bond Fund^tm

Schwab California Tax-Free Bond Fund^tm

Schwab Money Funds

Schwab offers an array of money market funds¹. Choose from taxable or tax-advantaged alternatives. Many can be linked to your eligible Schwab account to “sweep” cash balances automatically, subject to availability, when you’re between investments. Or, for your larger cash reserves, choose one of our Value Advantage Investments^®.

¹ Investments in money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency and, although they seek to preserve the value of your investment at $1 per share, it is possible to lose money.

Investment Adviser

Charles Schwab Investment Management, Inc.

211 Main Street, San Francisco, CA 94105

Schwab Funds^®

1-800-407-0256

This report is not authorized for distribution to prospective investors

unless preceded or accompanied by a current prospectus.

^© 2015 Charles Schwab & Co., Inc. All rights reserved.

Member SIPC^®

Printed on recycled paper.

MFR13559-18

00143415

Item 2: Code of Ethics.

Not applicable to this semi-annual report.

Item 3: Audit Committee Financial Expert.

Not applicable to this semi-annual report.

Item 4: Principal Accountant Fees and Services.

Not applicable to this semi-annual report.

Item 5: Audit Committee of Listed Registrants.

Not applicable.

Item 6: Schedule of Investments.

Except as noted below, the schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form. The schedules of investments for the Schwab 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 S&P 500 Index Fund, Schwab Small-Cap Index Fund, Schwab Total Stock Market Index Fund and Schwab International Index Fund are filed under this Item.

 Schwab S&P 500 Index Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.2%	Common Stock		12,186,042,788		21,550,464,571
	0	.2%	Other Investment Company		39,573,711		39,573,711
	0	.6%	Short-Term Investments		134,735,564		134,735,564
	100	.0%	Total Investments		12,360,352,063		21,724,773,846
	0	.0%	Other Assets and Liabilities, Net				4,694,090
	100	.0%	Net Assets				21,729,467,936

	Number		Value
Security	of Shares		($)
Common Stock 99.2% of net assets
Automobiles & Components 1.1%
BorgWarner, Inc.		261,400		15,474,880
Delphi Automotive plc		336,400		27,921,200
Ford Motor Co.		4,604,197		72,746,312
General Motors Co.		1,570,300		55,054,718
Harley-Davidson, Inc.		246,470		13,854,079
Johnson Controls, Inc.		783,359		39,465,626
The Goodyear Tire & Rubber Co.		304,936		8,649,510
				233,166,325
Banks 5.8%
Bank of America Corp.		12,290,811		195,792,619
BB&T Corp.		825,226		31,597,903
Citigroup, Inc.		3,543,947		188,963,254
Comerica, Inc.		211,070		10,006,829
Fifth Third Bancorp		940,929		18,818,580
Hudson City Bancorp, Inc.		594,892		5,532,496
Huntington Bancshares, Inc.		891,893		9,685,958
JPMorgan Chase & Co.		4,351,131		275,252,547
KeyCorp		1,027,498		14,847,346
M&T Bank Corp.		152,698		18,273,370
People’s United Financial, Inc.		343,300		5,187,263
Regions Financial Corp.		1,567,445		15,407,984
SunTrust Banks, Inc.		605,816		25,141,364
The PNC Financial Services Group, Inc.		616,478		56,549,527
U.S. Bancorp		2,102,928		90,152,523
Wells Fargo & Co.		5,472,309		301,524,226
Zions Bancorp		215,698		6,111,803
				1,268,845,592
Capital Goods 7.4%
3M Co.		742,219		116,075,629
Allegion plc		115,333		7,052,613
AMETEK, Inc.		289,400		15,170,348
Caterpillar, Inc.		707,762		61,490,363
Cummins, Inc.		195,962		27,093,706
Danaher Corp.		726,974		59,524,631
Deere & Co.		395,586		35,808,445
Dover Corp.		197,870		14,982,716
Eaton Corp. plc		560,938		38,553,269
Emerson Electric Co.		794,115		46,717,785
Fastenal Co.		329,398		14,038,943
Flowserve Corp.		150,300		8,797,059
Fluor Corp.		174,382		10,487,333
General Dynamics Corp.		369,560		50,747,979
General Electric Co.		11,744,652		318,045,176
Honeywell International, Inc.		917,329		92,576,843
Illinois Tool Works, Inc.		419,036		39,213,389
Ingersoll-Rand plc		308,100		20,285,304
Jacobs Engineering Group, Inc. *		139,834		5,993,285
Joy Global, Inc.		113,200		4,826,848
L-3 Communications Holdings, Inc.		97,283		11,178,789
Lockheed Martin Corp.		312,591		58,329,481
Masco Corp.		435,388		11,533,428
Northrop Grumman Corp.		234,267		36,086,489
PACCAR, Inc.		410,350		26,816,372
Pall Corp.		127,730		12,430,684
Parker-Hannifin Corp.		164,036		19,579,337
Pentair plc		208,982		12,988,231
Precision Castparts Corp.		166,527		34,419,466
Quanta Services, Inc. *		231,900		6,704,229
Raytheon Co.		358,588		37,293,152
Rockwell Automation, Inc.		159,921		18,966,631
Rockwell Collins, Inc.		158,605		15,437,025
Roper Technologies, Inc.		117,800		19,810,426
Snap-on, Inc.		66,282		9,912,473
Stanley Black & Decker, Inc.		179,881		17,754,255
Textron, Inc.		316,904		13,937,438
The Boeing Co.		765,654		109,748,844
United Rentals, Inc. *		110,100		10,633,458
United Technologies Corp.		959,835		109,181,231
W.W. Grainger, Inc.		69,927		17,371,965
Xylem, Inc.		197,600		7,315,152
				1,604,910,220
Commercial & Professional Supplies 0.6%
Cintas Corp.		111,376		8,904,511
Equifax, Inc.		136,561		13,236,858
Nielsen N.V.		369,700		16,614,318
Pitney Bowes, Inc.		231,591		5,180,691
Republic Services, Inc.		289,334		11,755,640
Robert Half International, Inc.		156,742		8,691,344
Stericycle, Inc. *		98,600		13,156,198
The ADT Corp.		194,500		7,313,200

See financial notes 1

 Schwab S&P 500 Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
The Dun & Bradstreet Corp.		46,800		5,974,956
Tyco International plc		505,300		19,898,714
Waste Management, Inc.		497,616		24,646,921
				135,373,351
Consumer Durables & Apparel 1.4%
Coach, Inc.		327,028		12,495,740
D.R. Horton, Inc.		384,416		9,764,166
Fossil Group, Inc. *		54,900		4,610,502
Garmin Ltd.		131,100		5,924,409
Hanesbrands, Inc.		481,600		14,968,128
Harman International Industries, Inc.		77,056		10,046,561
Hasbro, Inc.		138,917		9,833,935
Leggett & Platt, Inc.		157,894		6,705,758
Lennar Corp., Class A		215,318		9,861,564
Mattel, Inc.		384,094		10,816,087
Michael Kors Holdings Ltd. *		230,600		14,264,916
Mohawk Industries, Inc. *		72,100		12,509,350
Newell Rubbermaid, Inc.		326,350		12,443,726
NIKE, Inc., Class B		823,324		81,377,344
PulteGroup, Inc.		370,186		7,144,590
PVH Corp.		91,000		9,404,850
Ralph Lauren Corp.		69,126		9,222,100
Under Armour, Inc., Class A *		189,600		14,703,480
VF Corp.		390,964		28,317,523
Whirlpool Corp.		88,922		15,614,703
				300,029,432
Consumer Services 1.7%
Carnival Corp.		531,921		23,388,566
Chipotle Mexican Grill, Inc. *		35,559		22,094,229
Darden Restaurants, Inc.		145,748		9,294,350
H&R Block, Inc.		317,305		9,595,303
Marriott International, Inc., Class A		241,972		19,369,859
McDonald’s Corp.		1,124,038		108,525,869
Royal Caribbean Cruises Ltd.		198,200		13,489,492
Starbucks Corp.		1,758,524		87,187,620
Starwood Hotels & Resorts Worldwide, Inc.		202,568		17,410,720
Wyndham Worldwide Corp.		136,364		11,645,486
Wynn Resorts Ltd.		95,000		10,551,650
Yum! Brands, Inc.		501,985		43,150,630
				375,703,774
Diversified Financials 5.1%
Affiliated Managers Group, Inc. *		66,000		14,924,580
American Express Co.		1,016,941		78,762,080
Ameriprise Financial, Inc.		210,214		26,335,610
Berkshire Hathaway, Inc., Class B *		2,126,930		300,343,785
BlackRock, Inc.		149,700		54,481,818
Capital One Financial Corp.		636,474		51,458,923
CME Group, Inc.		373,685		33,971,703
Discover Financial Services		527,673		30,589,204
E*TRADE Financial Corp. *		354,519		10,206,602
Franklin Resources, Inc.		452,905		23,351,782
Intercontinental Exchange, Inc.		131,066		29,428,249
Invesco Ltd.		497,347		20,600,113
Legg Mason, Inc.		113,698		5,986,200
Leucadia National Corp.		379,851		9,029,058
McGraw Hill Financial, Inc.		321,467		33,529,008
Moody’s Corp.		201,329		21,646,894
Morgan Stanley		1,799,954		67,156,284
Navient Corp.		465,000		9,086,100
Northern Trust Corp.		256,018		18,727,717
State Street Corp.		477,026		36,788,245
T. Rowe Price Group, Inc.		303,279		24,620,189
The Bank of New York Mellon Corp.		1,313,473		55,612,447
The Charles Schwab Corp. (a)		1,338,581		40,826,721
The Goldman Sachs Group, Inc.		474,269		93,155,917
The NASDAQ OMX Group, Inc.		142,400		6,924,912
				1,097,544,141
Energy 8.4%
Anadarko Petroleum Corp.		589,009		55,425,747
Apache Corp.		445,806		30,493,130
Baker Hughes, Inc.		512,463		35,083,217
Cabot Oil & Gas Corp.		498,700		16,866,034
Cameron International Corp. *		249,600		13,683,072
Chesapeake Energy Corp. (b)		577,766		9,111,370
Chevron Corp.		2,192,834		243,536,144
Cimarex Energy Co.		108,400		13,484,960
ConocoPhillips		1,428,890		97,050,209
CONSOL Energy, Inc.		264,418		8,588,297
Devon Energy Corp.		454,458		30,998,580
Diamond Offshore Drilling, Inc. (b)		65,300		2,185,591
Ensco plc, Class A		258,200		7,043,696
EOG Resources, Inc.		644,212		63,744,777
EQT Corp.		177,100		15,928,374
Exxon Mobil Corp.		4,885,541		426,849,717
FMC Technologies, Inc. *		275,300		12,140,730
Halliburton Co.		983,668		48,150,549
Helmerich & Payne, Inc.		118,300		9,223,851
Hess Corp.		276,140		21,235,166
Kinder Morgan, Inc.		1,992,344		85,571,175
Marathon Oil Corp.		790,952		24,598,607
Marathon Petroleum Corp.		316,426		31,190,111
Murphy Oil Corp.		184,892		8,802,708
National Oilwell Varco, Inc.		479,724		26,101,783
Newfield Exploration Co. *		187,300		7,349,652
Noble Corp., plc		310,100		5,367,831
Noble Energy, Inc.		445,768		22,609,353
Occidental Petroleum Corp.		901,150		72,182,115
ONEOK, Inc.		253,100		12,174,110
Phillips 66		641,095		50,845,244
Pioneer Natural Resources Co.		175,400		30,305,612
QEP Resources, Inc.		186,091		4,187,048
Range Resources Corp.		191,200		12,152,672
Schlumberger Ltd.		1,475,715		139,617,396
Southwestern Energy Co. *		437,000		12,249,110
Spectra Energy Corp.		773,309		28,805,760
Tesoro Corp.		150,207		12,892,267
The Williams Cos., Inc.		795,098		40,701,067
Transocean Ltd. (b)		424,000		7,979,680

2 See financial notes

 Schwab S&P 500 Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Valero Energy Corp.		609,140		34,660,066
				1,831,166,578
Food & Staples Retailing 2.4%
Costco Wholesale Corp.		515,492		73,741,131
CVS Health Corp.		1,308,451		129,916,100
Sysco Corp.		704,957		26,104,558
The Kroger Co.		573,047		39,488,669
Wal-Mart Stores, Inc.		1,845,802		144,064,846
Walgreens Boots Alliance, Inc.		1,021,711		84,730,493
Whole Foods Market, Inc.		416,432		19,888,792
				517,934,589
Food, Beverage & Tobacco 5.2%
Altria Group, Inc.		2,296,091		114,919,355
Archer-Daniels-Midland Co.		747,599		36,542,639
Brown-Forman Corp., Class B		179,092		16,159,471
Campbell Soup Co.		210,511		9,411,947
Coca-Cola Enterprises, Inc.		258,662		11,487,179
ConAgra Foods, Inc.		508,149		18,369,586
Constellation Brands, Inc., Class A *		195,765		22,696,994
Dr Pepper Snapple Group, Inc.		219,200		16,347,936
General Mills, Inc.		693,280		38,366,115
Hormel Foods Corp.		162,800		8,848,180
Kellogg Co.		293,934		18,614,840
Keurig Green Mountain, Inc.		139,900		16,280,163
Kraft Foods Group, Inc.		690,318		58,504,451
Lorillard, Inc.		420,691		29,389,473
McCormick & Co., Inc. - Non Voting Shares		142,802		10,752,991
Mead Johnson Nutrition Co.		233,400		22,387,728
Molson Coors Brewing Co., Class B		192,930		14,182,284
Mondelez International, Inc., Class A		1,918,054		73,595,732
Monster Beverage Corp. *		168,800		23,144,168
PepsiCo, Inc.		1,731,963		164,744,321
Philip Morris International, Inc.		1,807,546		150,875,865
Reynolds American, Inc.		358,596		26,285,087
The Coca-Cola Co.		4,587,756		186,079,383
The Hershey Co.		170,528		15,674,934
The JM Smucker Co.		114,275		13,246,758
Tyson Foods, Inc., Class A		330,290		13,046,455
				1,129,954,035
Health Care Equipment & Services 4.9%
Abbott Laboratories		1,771,186		82,218,454
Aetna, Inc.		413,175		44,156,012
AmerisourceBergen Corp.		244,646		27,963,038
Anthem, Inc.		309,329		46,687,026
Baxter International, Inc.		635,189		43,662,892
Becton, Dickinson & Co.		246,898		34,780,521
Boston Scientific Corp. *		1,570,774		27,991,193
C.R. Bard, Inc.		84,373		14,054,854
Cardinal Health, Inc.		390,733		32,954,421
Cerner Corp. *		361,900		25,988,039
Cigna Corp.		302,108		37,654,741
DaVita HealthCare Partners, Inc. *		204,000		16,544,400
DENTSPLY International, Inc.		170,400		8,690,400
Edwards Lifesciences Corp. *		123,600		15,653,940
Express Scripts Holding Co. *		850,495		73,482,768
HCA Holdings, Inc. *		339,900		25,155,999
Henry Schein, Inc. *		97,100		13,312,410
Humana, Inc.		175,903		29,129,537
Intuitive Surgical, Inc. *		43,531		21,590,505
Laboratory Corp. of America Holdings *		115,791		13,843,972
McKesson Corp.		271,175		60,580,495
Medtronic plc		1,656,176		123,302,303
Patterson Cos., Inc.		104,447		4,904,309
Quest Diagnostics, Inc.		171,680		12,261,386
St. Jude Medical, Inc.		327,187		22,919,449
Stryker Corp.		351,140		32,389,154
Tenet Healthcare Corp. *		112,904		5,403,586
UnitedHealth Group, Inc.		1,116,110		124,334,654
Universal Health Services, Inc., Class B		100,900		11,800,255
Varian Medical Systems, Inc. *		110,706		9,836,228
Zimmer Holdings, Inc.		194,223		21,333,454
				1,064,580,395
Household & Personal Products 1.9%
Colgate-Palmolive Co.		995,994		67,010,476
Kimberly-Clark Corp.		423,995		46,508,012
The Clorox Co.		150,257		15,942,268
The Estee Lauder Cos., Inc., Class A		265,052		21,546,077
The Procter & Gamble Co.		3,156,090		250,940,716
				401,947,549
Insurance 2.6%
ACE Ltd.		382,300		40,902,277
Aflac, Inc.		507,873		32,016,314
American International Group, Inc.		1,591,654		89,594,204
Aon plc		323,350		31,115,970
Assurant, Inc.		74,246		4,563,159
Cincinnati Financial Corp.		203,003		10,280,072
Genworth Financial, Inc., Class A *		548,164		4,818,362
Lincoln National Corp.		294,671		16,645,965
Loews Corp.		354,416		14,757,882
Marsh & McLennan Cos., Inc.		625,279		35,115,669
MetLife, Inc.		1,304,877		66,927,141
Principal Financial Group, Inc.		316,567		16,182,905
Prudential Financial, Inc.		535,131		43,666,690
The Allstate Corp.		486,510		33,890,287
The Chubb Corp.		268,093		26,366,946
The Hartford Financial Services Group, Inc.		496,495		20,242,101
The Progressive Corp.		600,020		15,996,533
The Travelers Cos., Inc.		377,960		38,215,536
Torchmark Corp.		143,266		8,038,655
Unum Group		276,440		9,443,190
XL Group plc		284,099		10,534,391
				569,314,249

See financial notes 3

 Schwab S&P 500 Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Materials 3.2%
Air Products & Chemicals, Inc.		227,101		32,573,096
Airgas, Inc.		75,000		7,596,000
Alcoa, Inc.		1,449,264		19,449,123
Allegheny Technologies, Inc.		126,170		4,288,518
Avery Dennison Corp.		103,076		5,729,995
Ball Corp.		152,738		11,212,497
CF Industries Holdings, Inc.		57,625		16,565,459
E.I. du Pont de Nemours & Co.		1,048,404		76,743,173
Eastman Chemical Co.		172,716		13,164,413
Ecolab, Inc.		318,228		35,635,171
FMC Corp.		158,300		9,388,773
Freeport-McMoRan, Inc.		1,204,040		28,018,011
International Flavors & Fragrances, Inc.		89,743		10,298,009
International Paper Co.		494,389		26,558,577
LyondellBasell Industries N.V., Class A		462,000		47,826,240
Martin Marietta Materials, Inc.		74,500		10,627,425
MeadWestvaco Corp.		202,550		9,884,440
Monsanto Co.		565,400		64,432,984
Newmont Mining Corp.		593,346		15,717,736
Nucor Corp.		375,200		18,332,272
Owens-Illinois, Inc. *		198,600		4,748,526
PPG Industries, Inc.		156,948		34,773,399
Praxair, Inc.		333,579		40,673,287
Sealed Air Corp.		236,068		10,764,701
Sigma-Aldrich Corp.		142,254		19,761,926
The Dow Chemical Co.		1,270,035		64,771,785
The Mosaic Co.		363,000		15,972,000
The Sherwin-Williams Co.		95,736		26,614,608
Vulcan Materials Co.		151,071		12,919,592
				695,041,736
Media 3.5%
Cablevision Systems Corp., Class A		272,100		5,436,558
CBS Corp., Class B - Non Voting Shares		536,636		33,341,195
Comcast Corp., Class A		2,971,164		171,614,433
DIRECTV *		584,602		53,026,324
Discovery Communications, Inc., Class A *		192,700		6,235,772
Discovery Communications, Inc., Class C *		310,500		9,386,415
Gannett Co., Inc.		270,314		9,277,176
News Corp., Class A *		549,100		8,664,798
Omnicom Group, Inc.		280,047		21,216,361
Scripps Networks Interactive, Inc., Class A		116,593		8,145,187
The Interpublic Group of Cos., Inc.		456,265		9,508,563
The Walt Disney Co.		1,825,783		198,499,128
Time Warner Cable, Inc.		324,401		50,450,843
Time Warner, Inc.		972,474		82,086,530
Twenty-First Century Fox, Inc., Class A		2,125,101		72,423,442
Viacom, Inc., Class B		433,253		30,089,421
				769,402,146
Pharmaceuticals, Biotechnology & Life Sciences 9.6%
AbbVie, Inc.		1,862,186		120,408,947
Actavis plc *		456,868		129,229,682
Agilent Technologies, Inc.		407,366		16,852,731
Alexion Pharmaceuticals, Inc. *		236,100		39,955,203
Amgen, Inc.		888,459		140,296,561
Biogen, Inc. *		272,691		101,967,346
Bristol-Myers Squibb Co.		1,947,464		124,111,881
Celgene Corp. *		931,126		100,617,475
Eli Lilly & Co.		1,133,923		81,495,046
Endo International plc *		208,600		17,535,959
Gilead Sciences, Inc. *		1,739,450		174,832,119
Hospira, Inc. *		195,182		17,037,437
Johnson & Johnson		3,246,525		322,055,280
Mallinckrodt plc *		134,700		15,245,346
Merck & Co., Inc.		3,313,614		197,358,850
Mylan N.V. *		480,751		34,739,067
PerkinElmer, Inc.		141,360		7,246,114
Perrigo Co., plc		165,600		30,351,168
Pfizer, Inc.		7,155,933		242,800,807
Regeneron Pharmaceuticals, Inc. *		85,200		38,975,592
Thermo Fisher Scientific, Inc.		458,737		57,654,066
Vertex Pharmaceuticals, Inc. *		279,900		34,506,072
Waters Corp. *		92,352		11,561,547
Zoetis, Inc.		576,600		25,612,572
				2,082,446,868
Real Estate 2.5%
American Tower Corp.		494,600		46,754,538
Apartment Investment & Management Co., Class A		179,414		6,769,290
AvalonBay Communities, Inc.		150,099		24,667,270
Boston Properties, Inc.		176,476		23,349,540
CBRE Group, Inc., Class A *		337,440		12,937,450
Crown Castle International Corp.		389,900		32,568,347
Equity Residential		424,522		31,355,195
Essex Property Trust, Inc.		74,900		16,624,055
General Growth Properties, Inc.		736,600		20,182,840
HCP, Inc.		527,700		21,261,033
Health Care REIT, Inc.		399,400		28,764,788
Host Hotels & Resorts, Inc.		870,411		17,530,077
Iron Mountain, Inc.		205,202		7,077,417
Kimco Realty Corp.		519,159		12,511,732
Plum Creek Timber Co., Inc.		203,177		8,574,069
Prologis, Inc.		581,689		23,383,898
Public Storage		170,278		31,996,939
Realty Income Corp.		260,800		12,249,776
Simon Property Group, Inc.		368,653		66,906,833
SL Green Realty Corp.		118,300		14,475,188
The Macerich Co.		166,200		13,588,512
Ventas, Inc.		390,500		26,905,450
Vornado Realty Trust		203,856		21,097,057
Weyerhaeuser Co.		596,940		18,809,579
				540,340,873
Retailing 4.6%
Amazon.com, Inc. *		444,580		187,514,952

4 See financial notes

 Schwab S&P 500 Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
AutoNation, Inc. *		91,733		5,646,166
AutoZone, Inc. *		36,498		24,550,745
Bed Bath & Beyond, Inc. *		210,569		14,836,692
Best Buy Co., Inc.		327,357		11,342,920
CarMax, Inc. *		239,400		16,305,534
Dollar General Corp.		350,300		25,470,313
Dollar Tree, Inc. *		245,500		18,758,655
Expedia, Inc.		114,513		10,790,560
Family Dollar Stores, Inc.		110,830		8,660,256
GameStop Corp., Class A (b)		119,100		4,590,114
Genuine Parts Co.		178,638		16,050,624
Kohl’s Corp.		231,910		16,616,351
L Brands, Inc.		292,135		26,105,184
Lowe’s Cos., Inc.		1,131,588		77,921,150
Macy’s, Inc.		400,126		25,860,144
Netflix, Inc. *		71,700		39,901,050
Nordstrom, Inc.		164,796		12,451,986
O’Reilly Automotive, Inc. *		116,800		25,442,544
Ross Stores, Inc.		238,100		23,543,328
Staples, Inc.		781,869		12,760,102
Target Corp.		748,608		59,012,769
The Gap, Inc.		320,262		12,695,186
The Home Depot, Inc.		1,544,550		165,235,959
The Priceline Group, Inc. *		60,815		75,277,415
The TJX Cos., Inc.		789,406		50,948,263
Tiffany & Co.		125,428		10,972,441
Tractor Supply Co.		162,600		13,993,356
TripAdvisor, Inc. *		129,813		10,448,648
Urban Outfitters, Inc. *		111,100		4,448,444
				1,008,151,851
Semiconductors & Semiconductor Equipment 2.4%
Altera Corp.		358,646		14,948,365
Analog Devices, Inc.		366,554		22,667,699
Applied Materials, Inc.		1,455,372		28,801,812
Avago Technologies Ltd.		297,900		34,818,552
Broadcom Corp., Class A		637,718		28,190,324
First Solar, Inc. *		94,900		5,662,683
Intel Corp.		5,530,205		180,008,173
KLA-Tencor Corp.		185,081		10,882,763
Lam Research Corp.		181,374		13,708,247
Linear Technology Corp.		282,568		13,034,862
Microchip Technology, Inc.		240,423		11,457,358
Micron Technology, Inc. *		1,245,975		35,049,277
NVIDIA Corp.		601,582		13,352,112
Skyworks Solutions, Inc.		220,000		20,295,000
Texas Instruments, Inc.		1,211,454		65,672,921
Xilinx, Inc.		313,563		13,596,092
				512,146,240
Software & Services 10.5%
Accenture plc, Class A		729,400		67,578,910
Adobe Systems, Inc. *		562,676		42,797,137
Akamai Technologies, Inc. *		202,841		14,965,609
Alliance Data Systems Corp. *		72,500		21,554,975
Autodesk, Inc. *		269,681		15,325,971
Automatic Data Processing, Inc.		556,673		47,061,136
CA, Inc.		370,925		11,784,287
Citrix Systems, Inc. *		179,208		12,035,609
Cognizant Technology Solutions Corp., Class A *		708,596		41,481,210
Computer Sciences Corp.		162,140		10,449,923
eBay, Inc. *		1,279,269		74,530,212
Electronic Arts, Inc. *		357,392		20,760,901
Equinix, Inc.		66,700		17,070,531
Facebook, Inc., Class A *		2,449,800		192,970,746
Fidelity National Information Services, Inc.		335,634		20,973,769
Fiserv, Inc. *		280,704		21,782,631
Google, Inc., Class A *		333,312		182,911,626
Google, Inc., Class C *		335,075		180,049,342
International Business Machines Corp.		1,073,290		183,843,844
Intuit, Inc.		328,609		32,969,341
MasterCard, Inc., Class A		1,143,390		103,145,212
Microsoft Corp.		9,574,431		465,700,324
Oracle Corp.		3,743,586		163,295,221
Paychex, Inc.		371,965		17,999,386
Red Hat, Inc. *		210,100		15,812,126
Salesforce.com, Inc. *		705,165		51,350,115
Symantec Corp.		793,750		19,784,219
Teradata Corp. *		159,871		7,032,725
The Western Union Co.		627,325		12,722,151
Total System Services, Inc.		207,700		8,216,612
VeriSign, Inc. *		126,725		8,048,305
Visa, Inc., Class A		2,255,600		148,982,380
Xerox Corp.		1,208,366		13,896,209
Yahoo! Inc. *		1,012,455		43,095,147
				2,291,977,842
Technology Hardware & Equipment 6.9%
Amphenol Corp., Class A		362,300		20,060,551
Apple, Inc.		6,797,315		850,683,972
Cisco Systems, Inc.		5,964,728		171,963,108
Corning, Inc.		1,488,687		31,158,219
EMC Corp.		2,299,645		61,883,447
F5 Networks, Inc. *		82,400		10,054,448
FLIR Systems, Inc.		149,700		4,624,233
Harris Corp.		117,000		9,388,080
Hewlett-Packard Co.		2,113,108		69,669,171
Juniper Networks, Inc.		443,065		11,710,208
Motorola Solutions, Inc.		220,022		13,146,314
NetApp, Inc.		374,174		13,563,807
QUALCOMM, Inc.		1,919,765		130,544,020
SanDisk Corp.		247,324		16,555,869
Seagate Technology plc (b)		383,900		22,542,608
TE Connectivity Ltd.		468,700		31,191,985
Western Digital Corp.		251,600		24,591,384
				1,493,331,424
Telecommunication Services 2.3%
AT&T, Inc.		6,069,536		210,248,727
CenturyLink, Inc.		645,643		23,217,322
Frontier Communications Corp.		1,102,945		7,566,203
Level 3 Communications, Inc. *		329,800		18,449,012
Verizon Communications, Inc.		4,851,978		244,733,770
				504,215,034

See financial notes 5

 Schwab S&P 500 Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Transportation 2.2%
American Airlines Group, Inc.		830,400		40,095,864
C.H. Robinson Worldwide, Inc.		168,095		10,823,637
CSX Corp.		1,148,591		41,452,649
Delta Air Lines, Inc.		969,200		43,265,088
Expeditors International of Washington, Inc.		216,900		9,940,527
FedEx Corp.		306,768		52,018,650
Kansas City Southern		129,400		13,262,206
Norfolk Southern Corp.		357,892		36,093,408
Ryder System, Inc.		60,702		5,788,543
Southwest Airlines Co.		780,136		31,642,316
Union Pacific Corp.		1,031,250		109,549,687
United Parcel Service, Inc., Class B		816,618		82,094,608
				476,027,183
Utilities 3.0%
AES Corp.		781,249		10,351,549
AGL Resources, Inc.		129,640		6,517,003
Ameren Corp.		287,020		11,750,599
American Electric Power Co., Inc.		585,802		33,314,560
CenterPoint Energy, Inc.		514,366		10,786,255
CMS Energy Corp.		317,784		10,782,411
Consolidated Edison, Inc.		347,565		21,392,626
Dominion Resources, Inc.		687,064		49,248,747
DTE Energy Co.		202,612		16,133,994
Duke Energy Corp.		823,099		63,847,789
Edison International		390,093		23,772,267
Entergy Corp.		209,653		16,181,019
Eversource Energy		359,500		17,529,220
Exelon Corp.		1,009,093		34,329,344
FirstEnergy Corp.		488,694		17,549,002
Integrys Energy Group, Inc.		86,594		6,330,021
NextEra Energy, Inc.		518,338		52,315,854
NiSource, Inc.		374,662		16,267,824
NRG Energy, Inc.		378,600		9,555,864
Pepco Holdings, Inc.		316,200		8,214,876
PG&E Corp.		550,506		29,132,778
Pinnacle West Capital Corp.		125,361		7,672,093
PPL Corp.		790,470		26,899,694
Public Service Enterprise Group, Inc.		582,070		24,179,188
SCANA Corp.		157,500		8,344,350
Sempra Energy		270,569		28,726,311
TECO Energy, Inc.		273,819		5,188,870
The Southern Co.		1,065,625		47,207,187
Wisconsin Energy Corp.		271,400		13,331,168
Xcel Energy, Inc.		591,586		20,060,681
				646,913,144
Total Common Stock
(Cost $12,186,042,788)				21,550,464,571
Other Investment Company 0.2% of net assets
Securities Lending Collateral 0.2%
Wells Fargo Advantage Government Money Market Fund, Institutional Class 0.01% (c)		39,573,711		39,573,711
Total Other Investment Company
(Cost $39,573,711)				39,573,711
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investments 0.6% of net assets
Time Deposits 0.6%
Australia & New Zealand Banking Group Ltd.
0.03%, 05/01/15		27,872,207		27,872,207
JPMorgan Chase Bank
0.03%, 05/01/15		106,863,357		106,863,357
Total Short-Term Investments
(Cost $134,735,564)				134,735,564
End of Investments.

At 04/30/15, tax basis cost of the fund’s investments was $12,401,488,360 and the unrealized appreciation and depreciation were $9,776,773,374 and ($453,487,888), respectively, with a net unrealized appreciation of $9,323,285,486.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.
(b)	All or a portion of this security is on loan. Securities on loan were valued at $39,607,948.
(c)	The rate shown is the 7-day yield.

REIT — Real Estate Investment Trust

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Appreciation
	Contracts		($)		($)
Futures Contracts
S&P 500 Index, e-mini, Long, expires 06/19/15		1,500		155,917,500		15,211

6 See financial notes

 Schwab Small-Cap Index Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.2%	Common Stock		1,852,070,505		2,674,435,521
	0	.0%	Rights		320,914		320,914
	0	.0%	Warrants		—		—
	4	.3%	Other Investment Company		115,143,210		115,143,210
	0	.7%	Short-Term Investment		20,490,679		20,490,679
	104	.2%	Total Investments		1,988,025,308		2,810,390,324
	(4	.2%)	Other Assets and Liabilities, Net				(114,097,384	)
	100	.0%	Net Assets				2,696,292,940

	Number		Value
Security	of Shares		($)
Common Stock 99.2% of net assets
Automobiles & Components 1.3%
American Axle & Manufacturing Holdings, Inc. *		106,500		2,655,045
Cooper Tire & Rubber Co.		86,899		3,692,339
Cooper-Standard Holding, Inc. *		20,100		1,226,502
Dana Holding Corp.		256,593		5,534,711
Dorman Products, Inc. *		40,100		1,877,883
Drew Industries, Inc.		34,800		1,972,116
Federal-Mogul Holdings Corp. *		42,300		545,670
Fox Factory Holding Corp. *		14,100		214,602
Fuel Systems Solutions, Inc. *		22,300		247,530
Gentherm, Inc. *		52,600		2,773,598
Metaldyne Performance Group, Inc. *		19,300		348,558
Modine Manufacturing Co. *		73,100		898,399
Motorcar Parts of America, Inc. *		26,100		762,903
Remy International, Inc.		44,000		979,000
Shiloh Industries, Inc. *		12,600		146,538
Spartan Motors, Inc.		44,700		210,537
Standard Motor Products, Inc.		28,800		1,088,640
Stoneridge, Inc. *		42,600		512,904
Strattec Security Corp.		5,100		382,857
Superior Industries International, Inc.		37,500		697,500
Tenneco, Inc. *		92,336		5,397,039
Tower International, Inc. *		30,200		780,972
Winnebago Industries, Inc.		43,600		902,956
				33,848,799
Banks 9.5%
1st Source Corp.		23,821		741,310
American National Bankshares, Inc.		10,700		240,857
Ameris Bancorp		47,700		1,192,023
Ames National Corp.		15,500		386,570
Anchor BanCorp Wisconsin, Inc. *		9,300		336,288
Arrow Financial Corp.		14,430		376,046
Astoria Financial Corp.		130,200		1,714,734
Banc of California, Inc.		43,600		540,640
BancFirst Corp.		10,116		583,896
Banco Latinoamericano de Exportaciones, S.A., Class E		44,057		1,399,691
BancorpSouth, Inc.		148,500		3,595,185
Bank Mutual Corp.		71,800		516,242
Bank of Marin Bancorp		9,100		458,822
Bank of the Ozarks, Inc.		128,300		4,972,908
BankFinancial Corp.		28,200		360,960
Banner Corp.		29,700		1,343,034
BBCN Bancorp, Inc.		114,300		1,621,917
BBX Capital Corp., Class A *		10,300		188,799
Beneficial Bancorp, Inc. *		48,948		567,797
Berkshire Hills Bancorp, Inc.		38,700		1,083,987
Blue Hills Bancorp, Inc. *		43,900		589,138
BNC Bancorp		32,787		598,363
BofI Holding, Inc. *		23,920		2,196,095
Boston Private Financial Holdings, Inc.		116,000		1,525,400
Bridge Bancorp, Inc.		16,100		406,847
Bridge Capital Holdings *		17,400		470,670
Brookline Bancorp, Inc.		105,522		1,136,472
Bryn Mawr Bank Corp.		27,200		818,448
C1 Financial, Inc. *(c)		6,700		125,424
Camden National Corp.		10,300		394,696
Capital Bank Financial Corp., Class A *		35,300		957,336
Capital City Bank Group, Inc.		15,300		215,271
Capitol Federal Financial, Inc.		227,600		2,731,200
Cardinal Financial Corp.		48,200		994,366
Cascade Bancorp *		55,003		265,115
Cathay General Bancorp		123,426		3,527,515
CenterState Banks, Inc.		52,100		633,536
Central Pacific Financial Corp.		25,100		574,790
Century Bancorp, Inc., Class A		4,700		181,561
Charter Financial Corp.		24,859		297,562
Chemical Financial Corp.		50,231		1,552,138
Citizens & Northern Corp.		20,300		402,752
City Holding Co.		22,100		1,015,937
Clifton Bancorp, Inc.		38,861		530,453
CNB Financial Corp.		20,700		355,626
CoBiz Financial, Inc.		60,600		727,806
Columbia Banking System, Inc.		87,500		2,598,750
Community Bank System, Inc.		64,122		2,241,064
Community Trust Bancorp, Inc.		21,780		698,702
CommunityOne Bancorp *		13,700		134,945
ConnectOne Bancorp, Inc.		39,040		750,349
CU Bancorp *		13,400		277,648
Customers Bancorp, Inc. *		37,450		944,115
CVB Financial Corp.		155,319		2,430,742

See financial notes 17

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Dime Community Bancshares, Inc.		50,600		805,552
Eagle Bancorp, Inc. *		43,080		1,587,929
Enterprise Bancorp, Inc.		13,914		298,594
Enterprise Financial Services Corp.		28,000		574,840
Essent Group Ltd. *		72,700		1,813,865
EverBank Financial Corp.		133,700		2,482,809
F.N.B. Corp.		256,137		3,398,938
FCB Financial Holdings, Inc., Class A *		13,600		363,936
Federal Agricultural Mortgage Corp., Class C		15,800		496,752
Fidelity Southern Corp.		28,448		477,926
Financial Institutions, Inc.		18,500		435,675
First Bancorp (North Carolina)		31,600		512,868
First BanCorp (Puerto Rico) *		152,900		918,929
First Bancorp, Inc.		12,096		201,761
First Busey Corp.		103,200		643,968
First Business Financial Services, Inc.		5,800		263,436
First Citizens BancShares, Inc., Class A		14,361		3,451,523
First Commonwealth Financial Corp.		144,929		1,307,260
First Community Bancshares, Inc.		24,600		412,296
First Connecticut Bancorp, Inc.		23,900		353,242
First Defiance Financial Corp.		13,000		455,000
First Financial Bancorp		88,789		1,532,498
First Financial Bankshares, Inc. (c)		99,062		2,868,836
First Financial Corp.		17,700		600,915
First Financial Northwest, Inc.		22,000		261,800
First Interstate BancSystem, Inc., Class A		28,833		780,221
First Merchants Corp.		50,700		1,144,299
First Midwest Bancorp, Inc.		121,763		2,082,147
First NBC Bank Holding Co. *		21,900		770,442
FirstMerit Corp.		251,032		4,862,490
Flagstar Bancorp, Inc. *		28,300		486,194
Flushing Financial Corp.		47,500		910,100
Fox Chase Bancorp, Inc.		19,500		324,285
German American Bancorp, Inc.		20,700		592,227
Glacier Bancorp, Inc.		109,611		2,887,154
Great Southern Bancorp, Inc.		13,600		536,112
Great Western Bancorp, Inc.		26,600		581,742
Green Bancorp, Inc. *		7,000		83,650
Guaranty Bancorp		20,920		329,281
Hampton Roads Bankshares, Inc. *		74,100		131,898
Hancock Holding Co.		126,749		3,689,663
Hanmi Financial Corp.		45,900		976,752
Heartland Financial USA, Inc.		24,500		843,045
Heritage Commerce Corp.		27,900		248,589
Heritage Financial Corp.		45,545		769,711
Heritage Oaks Bancorp		27,600		219,972
Hilltop Holdings, Inc. *		120,473		2,422,712
Home BancShares, Inc.		79,380		2,610,014
HomeStreet, Inc. *		34,122		705,643
HomeTrust Bancshares, Inc. *		29,400		459,816
Horizon Bancorp		12,400		289,540
Hudson Valley Holding Corp.		20,000		494,800
IBERIABANK Corp.		48,000		2,990,880
Independent Bank Corp., Massachusetts		39,800		1,660,456
Independent Bank Corp., Michigan		33,600		444,864
Independent Bank Group, Inc.		13,400		515,900
International Bancshares Corp.		87,100		2,262,858
Investors Bancorp, Inc.		540,591		6,400,597
Kearny Financial Corp. *		22,000		293,480
Ladder Capital Corp., Class A		22,800		399,912
Lakeland Bancorp, Inc.		53,497		607,191
Lakeland Financial Corp.		23,200		905,960
LegacyTexas Financial Group, Inc.		66,100		1,682,245
LendingTree, Inc. *		10,700		588,821
Macatawa Bank Corp.		33,800		177,450
MainSource Financial Group, Inc.		33,544		645,722
MB Financial, Inc.		97,046		2,923,996
Mercantile Bank Corp.		25,300		501,446
Merchants Bancshares, Inc.		9,946		293,009
Meridian Bancorp, Inc. *		28,891		371,249
Meta Financial Group, Inc.		7,800		319,098
Metro Bancorp, Inc.		23,269		596,617
MGIC Investment Corp. *		505,545		5,267,779
MidSouth Bancorp, Inc.		10,200		132,294
MidWestOne Financial Group, Inc.		9,300		272,025
National Bank Holdings Corp., Class A		54,900		1,043,100
National Bankshares, Inc. (c)		9,300		269,793
National Penn Bancshares, Inc.		186,478		1,939,371
NBT Bancorp, Inc.		62,323		1,505,100
NewBridge Bancorp		49,300		396,865
NMI Holdings, Inc., Class A *		74,100		591,318
Northfield Bancorp, Inc.		78,586		1,133,996
Northrim BanCorp, Inc.		8,900		221,788
Northwest Bancshares, Inc.		140,909		1,734,590
OceanFirst Financial Corp.		19,600		328,888
OFG Bancorp		64,500		908,805
Old Line Bancshares, Inc.		12,300		197,538
Old National Bancorp		182,683		2,495,450
Opus Bank		7,500		234,750
Oritani Financial Corp.		67,950		1,012,455
Pacific Continental Corp.		24,700		318,630
Pacific Premier Bancorp, Inc. *		41,300		646,758
Palmetto Bancshares, Inc. (c)		7,300		132,495
Park National Corp.		18,853		1,556,504
Park Sterling Corp.		71,600		479,720
Peapack-Gladstone Financial Corp.		28,100		588,133
Penns Woods Bancorp, Inc.		7,100		309,489
PennyMac Financial Services, Inc., Class A *		18,200		343,616
Peoples Bancorp, Inc.		21,900		507,861
Peoples Financial Services Corp. (c)		11,100		436,119
Pinnacle Financial Partners, Inc.		51,932		2,474,560
Preferred Bank		16,100		453,698
PrivateBancorp, Inc.		107,576		3,987,842
Prosperity Bancshares, Inc.		105,598		5,632,597
Provident Financial Services, Inc.		89,751		1,615,518
Radian Group, Inc.		288,140		5,146,180

18 See financial notes

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Renasant Corp.		48,181		1,431,458
Republic Bancorp, Inc., Class A		16,100		382,858
Republic First Bancorp, Inc. *		45,400		163,440
S&T Bancorp, Inc.		52,581		1,414,429
Sandy Spring Bancorp, Inc.		37,500		977,250
Seacoast Banking Corp of Florida *		26,520		370,219
ServisFirst Bancshares, Inc.		4,200		146,412
Sierra Bancorp		15,900		260,442
Simmons First National Corp., Class A		35,500		1,553,125
South State Corp.		35,763		2,421,870
Southside Bancshares, Inc. (c)		36,732		1,003,522
Southwest Bancorp, Inc.		32,600		561,698
Square 1 Financial, Inc., Class A *		8,800		227,568
State Bank Financial Corp.		50,000		1,000,500
Sterling Bancorp		142,505		1,849,715
Stock Yards Bancorp, Inc.		23,620		821,976
Stonegate Bank		14,600		418,144
Stonegate Mortgage Corp. *		21,000		225,540
Suffolk Bancorp		19,300		462,428
Sun Bancorp, Inc. *		10,080		190,814
Susquehanna Bancshares, Inc.		288,923		3,883,125
Talmer Bancorp, Inc., Class A		26,700		410,646
Territorial Bancorp, Inc.		16,800		388,080
Texas Capital Bancshares, Inc. *		68,900		3,628,274
The Bancorp, Inc. *		52,100		507,454
The Bank of Kentucky Financial Corp.		8,300		397,487
The First of Long Island Corp.		19,500		487,890
Tompkins Financial Corp.		23,042		1,201,640
Towne Bank		64,799		1,072,423
TriCo Bancshares		39,400		918,808
TriState Capital Holdings, Inc. *		32,400		405,000
Triumph Bancorp, Inc. *		13,900		186,538
TrustCo Bank Corp.		147,155		981,524
Trustmark Corp.		99,977		2,379,453
UMB Financial Corp.		55,400		2,758,366
Umpqua Holdings Corp.		249,921		4,251,156
Union Bankshares Corp.		69,268		1,507,272
United Bankshares, Inc.		103,848		3,902,608
United Community Banks, Inc.		73,400		1,365,974
United Community Financial Corp.		71,100		383,229
United Financial Bancorp, Inc.		79,107		1,008,614
Univest Corp. of Pennsylvania		22,500		438,975
Valley National Bancorp		357,370		3,369,999
Walker & Dunlop, Inc. *		26,200		501,468
Washington Federal, Inc.		148,700		3,211,920
Washington Trust Bancorp, Inc.		21,000		777,420
Waterstone Financial, Inc.		66,904		852,357
Webster Financial Corp.		136,127		4,877,430
WesBanco, Inc.		49,358		1,555,271
West Bancorp, Inc.		20,800		394,368
Westamerica Bancorp		38,600		1,681,030
Western Alliance Bancorp *		113,252		3,501,752
Wilshire Bancorp, Inc.		98,300		1,037,065
Wintrust Financial Corp.		73,155		3,565,575
WSFS Financial Corp.		12,500		889,625
Yadkin Financial Corp. *		32,562		640,820
				256,377,605
Capital Goods 7.9%
AAON, Inc.		61,087		1,464,255
AAR Corp.		59,997		1,814,309
Accuride Corp. *		65,000		265,200
Actuant Corp., Class A		95,506		2,274,953
Advanced Drainage Systems, Inc.		21,900		613,200
Aegion Corp. *		54,400		1,002,048
Aerojet Rocketdyne Holdings, Inc. *		89,400		1,757,604
Aerovironment, Inc. *		26,700		683,520
Aircastle Ltd.		94,800		2,273,304
Alamo Group, Inc.		10,500		648,690
Albany International Corp., Class A		42,100		1,650,320
Altra Industrial Motion Corp.		38,400		1,012,608
Ameresco, Inc., Class A *		27,700		186,144
American Railcar Industries, Inc.		14,631		776,028
American Science & Engineering, Inc.		12,200		456,524
American Woodmark Corp. *		18,900		958,230
Apogee Enterprises, Inc.		43,400		2,283,708
Applied Industrial Technologies, Inc.		62,166		2,596,674
ARC Group Worldwide, Inc. *		6,000		41,700
Argan, Inc.		19,900		642,969
Astec Industries, Inc.		27,695		1,165,406
Astronics Corp. *		27,792		1,870,680
AZZ, Inc.		38,800		1,799,932
Barnes Group, Inc.		79,840		3,201,584
Beacon Roofing Supply, Inc. *		72,382		2,151,193
Blount International, Inc. *		76,862		1,019,190
Briggs & Stratton Corp.		69,593		1,360,543
Builders FirstSource, Inc. *		71,700		914,892
CAI International, Inc. *		24,500		583,590
Capstone Turbine Corp. *(c)		483,600		303,798
Chart Industries, Inc. *		45,102		1,828,886
CIRCOR International, Inc.		26,300		1,437,032
CLARCOR, Inc.		76,365		4,963,725
Columbus McKinnon Corp.		30,600		776,016
Comfort Systems USA, Inc.		57,000		1,179,330
Commercial Vehicle Group, Inc. *		44,170		254,419
Continental Building Products, Inc. *		20,200		444,602
Cubic Corp.		30,215		1,498,060
Curtiss-Wright Corp.		71,582		5,229,781
DigitalGlobe, Inc. *		114,935		3,697,459
Douglas Dynamics, Inc.		30,400		661,200
Ducommun, Inc. *		15,100		459,040
DXP Enterprises, Inc. *		19,000		855,950
Dycom Industries, Inc. *		53,300		2,450,734
Dynamic Materials Corp.		23,217		310,876
EMCOR Group, Inc.		99,500		4,440,685
Encore Wire Corp.		32,995		1,485,105
Energy Recovery, Inc. *(c)		61,300		182,061
EnerSys		67,259		4,566,886
Engility Holdings, Inc.		28,234		786,882
Enphase Energy, Inc. *(c)		25,997		326,782
EnPro Industries, Inc.		34,800		2,227,548
Erickson, Inc. *(c)		5,400		19,170
ESCO Technologies, Inc.		37,669		1,382,452
Esterline Technologies Corp. *		48,500		5,397,565

See financial notes 19

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Federal Signal Corp.		94,400		1,483,968
Franklin Electric Co., Inc.		70,936		2,565,046
FreightCar America, Inc.		16,000		417,440
FuelCell Energy, Inc. *(c)		330,000		405,900
Furmanite Corp. *		59,700		435,810
Generac Holdings, Inc. *		105,146		4,383,537
General Cable Corp.		83,149		1,356,160
General Finance Corp. *		16,200		125,712
Gibraltar Industries, Inc. *		46,000		761,760
Global Brass & Copper Holdings, Inc.		31,300		477,012
Global Power Equipment Group, Inc.		23,600		286,740
GrafTech International Ltd. *		176,400		853,776
Graham Corp.		15,200		355,680
Granite Construction, Inc.		58,000		2,013,180
Great Lakes Dredge & Dock Corp. *		85,200		494,160
Griffon Corp.		66,094		1,111,040
H&E Equipment Services, Inc.		46,100		1,139,592
Harsco Corp.		118,500		1,905,480
HEICO Corp.		100,405		5,606,615
Hillenbrand, Inc.		92,100		2,706,819
Houston Wire & Cable Co.		23,800		224,672
Hurco Cos., Inc.		8,600		278,296
Hyster-Yale Materials Handling, Inc.		15,554		1,140,730
Insteel Industries, Inc.		28,500		577,410
John Bean Technologies Corp.		47,513		1,833,527
Kadant, Inc.		16,500		840,840
Kaman Corp.		42,649		1,778,890
Kratos Defense & Security Solutions, Inc. *		62,600		342,422
L.B. Foster Co., Class A		14,500		619,585
Layne Christensen Co. *(c)		28,311		190,250
Lindsay Corp. (c)		18,166		1,438,566
LMI Aerospace, Inc. *		16,700		188,543
LSI Industries, Inc.		34,500		309,120
Lydall, Inc. *		26,600		713,944
Manitex International, Inc. *(c)		17,500		173,425
Masonite International Corp. *		45,200		2,992,240
MasTec, Inc. *		100,173		1,797,104
Meritor, Inc. *		156,239		2,049,856
Miller Industries, Inc.		15,800		353,604
Moog, Inc., Class A *		61,905		4,325,921
Mueller Industries, Inc.		86,748		3,039,650
Mueller Water Products, Inc., Class A		242,600		2,270,736
MYR Group, Inc. *		33,000		967,560
National Presto Industries, Inc. (c)		7,100		444,318
NCI Building Systems, Inc. *		41,200		637,776
Neff Corp., Class A *		22,700		267,860
NN, Inc.		26,700		671,772
Norcraft Cos, Inc. *		10,700		276,274
Nortek, Inc. *		14,128		1,195,511
Northwest Pipe Co. *		15,513		376,035
Omega Flex, Inc.		5,672		168,969
Orion Marine Group, Inc. *		36,200		304,804
Patrick Industries, Inc. *		12,000		720,720
PGT, Inc. *		69,300		784,476
Plug Power, Inc. *(c)		245,100		622,554
Ply Gem Holdings, Inc. *		32,400		439,992
Polypore International, Inc. *		68,400		4,005,504
Powell Industries, Inc.		13,000		431,470
Power Solutions International, Inc. *		6,600		421,080
PowerSecure International, Inc. *		31,100		407,721
Preformed Line Products Co.		3,300		138,435
Primoris Services Corp.		56,900		1,094,187
Proto Labs, Inc. *		33,200		2,324,000
Quanex Building Products Corp.		55,404		1,069,297
Raven Industries, Inc.		53,000		1,056,820
RBC Bearings, Inc.		35,300		2,576,547
Revolution Lighting Technologies, Inc. *(c)		42,300		49,491
Rexnord Corp. *		115,442		3,058,059
Rush Enterprises, Inc., Class A *		51,387		1,343,256
SIFCO Industries, Inc.		3,700		53,909
Simpson Manufacturing Co., Inc.		60,494		1,982,993
Sparton Corp. *		14,600		376,242
Standex International Corp.		19,900		1,609,313
Sterling Construction Co., Inc. *		52,600		230,914
Stock Building Supply Holdings, Inc. *		21,400		393,118
Sun Hydraulics Corp.		32,750		1,274,302
TAL International Group, Inc. *		50,300		1,938,562
TASER International, Inc. *		82,500		2,490,675
TCP International Holdings Ltd. *		16,300		60,799
Teledyne Technologies, Inc. *		55,071		5,780,803
Tennant Co.		29,188		1,876,496
Textainer Group Holdings Ltd.		36,731		1,112,949
The ExOne Co. *(c)		14,600		200,166
The Gorman-Rupp Co.		29,031		787,030
The Greenbrier Cos., Inc. (c)		42,700		2,463,363
The KEYW Holding Corp. *(c)		45,400		438,110
Thermon Group Holdings, Inc. *		46,800		1,089,036
Titan International, Inc.		64,600		671,194
Titan Machinery, Inc. *(c)		23,200		339,880
Trex Co., Inc. *		51,272		2,405,682
TriMas Corp. *		67,000		1,887,390
Tutor Perini Corp. *		54,030		1,145,436
Twin Disc, Inc.		11,300		203,287
Universal Forest Products, Inc.		30,262		1,674,094
Vicor Corp. *		26,200		399,550
Wabash National Corp. *		98,800		1,385,176
Watsco, Inc.		39,700		4,775,513
Watts Water Technologies, Inc., Class A		44,518		2,428,457
Woodward, Inc.		100,673		4,736,665
Xerium Technologies, Inc. *		15,600		277,368
				213,342,760
Commercial & Professional Supplies 3.5%
ABM Industries, Inc.		82,409		2,641,209
Acacia Research Corp.		72,500		798,950
ACCO Brands Corp. *		170,185		1,339,356
ARC Document Solutions, Inc. *		64,500		550,830
Barrett Business Services, Inc.		10,200		453,594
Brady Corp., Class A		69,929		1,862,209
Casella Waste Systems, Inc., Class A *		57,800		316,744
CBIZ, Inc. *		64,100		579,464

20 See financial notes

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
CDI Corp.		19,400		264,616
CECO Environmental Corp.		32,152		379,072
Cenveo, Inc. *		73,800		146,124
Civeo Corp.		132,900		620,643
CRA International, Inc. *		14,500		423,400
Deluxe Corp.		75,755		4,905,136
Ennis, Inc.		38,200		587,516
Exponent, Inc.		19,200		1,701,312
Franklin Covey Co. *		17,900		333,656
FTI Consulting, Inc. *		60,600		2,491,266
G&K Services, Inc., Class A		29,830		2,105,998
GP Strategies Corp. *		20,376		664,054
Healthcare Services Group, Inc.		102,425		3,100,405
Heidrick & Struggles International, Inc.		24,100		579,846
Heritage-Crystal Clean, Inc. *		16,900		198,068
Herman Miller, Inc.		88,300		2,420,303
Hill International, Inc. *		35,300		135,905
HNI Corp.		70,800		3,302,112
Huron Consulting Group, Inc. *		34,800		2,109,576
ICF International, Inc. *		28,200		1,085,700
InnerWorkings, Inc. *		46,200		292,446
Insperity, Inc.		33,210		1,599,394
Interface, Inc.		97,500		2,118,675
Kelly Services, Inc., Class A		38,323		629,264
Kforce, Inc.		41,700		948,258
Kimball International, Inc., Class B		58,299		589,986
Knoll, Inc.		73,803		1,680,494
Korn/Ferry International		74,261		2,341,449
Matthews International Corp., Class A		47,759		2,317,744
McGrath RentCorp		40,535		1,342,114
Mistras Group, Inc. *		26,414		474,395
Mobile Mini, Inc.		68,568		2,642,611
MSA Safety, Inc.		43,089		1,970,891
Multi-Color Corp.		18,500		1,161,430
Navigant Consulting, Inc. *		72,548		1,049,044
NL Industries, Inc. *		8,900		65,593
On Assignment, Inc. *		79,700		2,681,905
Paylocity Holding Corp. *		12,300		346,245
Pendrell Corp. *		230,900		251,681
Performant Financial Corp. *		43,700		129,789
Quad Graphics, Inc.		41,700		898,218
Quest Resource Holding Corp. *(c)		19,000		22,990
Resources Connection, Inc.		63,450		999,972
RPX Corp. *		77,800		1,210,568
SP Plus Corp. *		21,200		482,512
Steelcase, Inc., Class A		129,742		2,279,567
Team, Inc. *		34,078		1,331,768
Tetra Tech, Inc.		95,400		2,586,294
The Advisory Board Co. *		63,038		3,271,042
The Brink’s Co.		72,300		1,913,781
The Corporate Executive Board Co.		52,122		4,369,387
TriNet Group, Inc. *		23,100		808,962
TrueBlue, Inc. *		61,576		1,772,157
UniFirst Corp.		23,635		2,676,191
United Stationers, Inc.		57,734		2,344,578
US Ecology, Inc.		34,000		1,594,940
Viad Corp.		30,396		807,622
VSE Corp.		7,400		526,436
WageWorks, Inc. *		55,800		2,812,320
West Corp.		60,600		1,875,570
				95,315,347
Consumer Durables & Apparel 2.8%
Arctic Cat, Inc.		18,800		667,212
Beazer Homes USA, Inc. *		38,540		674,835
Black Diamond, Inc. *		36,700		330,667
Brunswick Corp.		138,886		6,949,855
Callaway Golf Co.		122,269		1,183,564
Cavco Industries, Inc. *		13,000		852,410
Century Communities, Inc. *		6,900		131,928
Columbia Sportswear Co.		40,600		2,545,620
Crocs, Inc. *		121,900		1,609,080
CSS Industries, Inc.		13,400		379,756
Culp, Inc.		12,000		310,200
Escalade, Inc.		14,500		260,855
Ethan Allen Interiors, Inc.		38,179		924,695
Flexsteel Industries, Inc.		6,200		223,262
G-III Apparel Group Ltd. *		29,255		3,252,571
Helen of Troy Ltd. *		43,700		3,828,557
Hovnanian Enterprises, Inc., Class A *(c)		161,300		503,256
Iconix Brand Group, Inc. *		70,800		1,862,748
Installed Building Products, Inc. *		12,800		266,368
iRobot Corp. *		44,245		1,434,423
JAKKS Pacific, Inc. *(c)		36,400		242,788
Johnson Outdoors, Inc., Class A		8,500		267,750
KB Home		125,600		1,819,944
La-Z-Boy, Inc.		78,200		2,049,622
LeapFrog Enterprises, Inc. *		90,800		205,208
LGI Homes, Inc. *(c)		21,000		345,870
Libbey, Inc.		34,479		1,356,749
Lifetime Brands, Inc.		12,400		180,420
M.D.C. Holdings, Inc.		63,745		1,710,916
M/I Homes, Inc. *		34,500		778,320
Malibu Boats, Inc., Class A *		12,300		260,391
Marine Products Corp.		13,700		97,270
Meritage Homes Corp. *		60,185		2,574,112
Movado Group, Inc.		27,200		796,416
NACCO Industries, Inc., Class A		7,777		380,918
Nautilus, Inc. *		44,200		743,002
Oxford Industries, Inc.		22,296		1,771,417
Perry Ellis International, Inc. *		16,800		401,856
Quiksilver, Inc. *		206,300		342,458
Sequential Brands Group, Inc. *(c)		24,800		307,520
Skechers U.S.A., Inc., Class A *		59,978		5,393,222
Skullcandy, Inc. *		36,100		390,241
Smith & Wesson Holding Corp. *		80,900		1,202,579
Standard Pacific Corp. *		209,500		1,696,950
Steven Madden Ltd. *		91,450		3,568,379
Sturm, Ruger & Co., Inc.		29,100		1,594,971
The Dixie Group, Inc. *		22,000		216,260
The New Home Co., Inc. *		16,049		238,167
The Ryland Group, Inc.		68,400		2,819,448
TRI Pointe Homes, Inc. *		223,700		3,194,436
Tumi Holdings, Inc. *		73,300		1,714,487
Turtle Beach Corp. *(c)		11,000		24,200
UCP, Inc., Class A *		11,100		96,126

See financial notes 21

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Unifi, Inc. *		21,300		751,677
Universal Electronics, Inc. *		24,800		1,337,712
Vera Bradley, Inc. *		39,500		562,480
Vince Holding Corp. *		16,700		307,781
WCI Communities, Inc. *		17,200		399,900
William Lyon Homes, Class A *		25,700		556,405
Wolverine World Wide, Inc.		154,747		4,755,375
				75,645,605
Consumer Services 4.1%
2U, Inc. *		15,100		401,811
American Public Education, Inc. *		25,200		702,828
Ascent Capital Group, Inc., Class A *		19,700		788,788
Belmond Ltd., Class A *		143,700		1,770,384
Biglari Holdings, Inc. *		2,410		880,879
BJ’s Restaurants, Inc. *		33,000		1,544,400
Bloomin’ Brands, Inc.		119,000		2,696,540
Bob Evans Farms, Inc.		36,246		1,559,303
Boyd Gaming Corp. *		113,800		1,502,160
Bravo Brio Restaurant Group, Inc. *		28,900		425,697
Bridgepoint Education, Inc. *		36,200		317,474
Bright Horizons Family Solutions, Inc. *		45,000		2,262,600
Buffalo Wild Wings, Inc. *		28,679		4,568,565
Caesars Acquisition Co., Class A *		67,100		421,388
Caesars Entertainment Corp. *(c)		87,400		829,426
Capella Education Co.		15,800		853,674
Career Education Corp. *		91,200		383,040
Carriage Services, Inc.		21,800		515,352
Carrols Restaurant Group, Inc. *		51,700		467,368
Chegg, Inc. *(c)		125,300		930,979
Churchill Downs, Inc.		19,314		2,301,649
Chuy’s Holdings, Inc. *		23,100		522,522
ClubCorp Holdings, Inc.		30,000		656,700
Collectors Universe, Inc.		10,100		232,603
Cracker Barrel Old Country Store, Inc.		29,236		3,873,185
Dave & Buster’s Entertainment, Inc. *		10,400		327,808
Del Frisco’s Restaurant Group, Inc. *		34,700		699,899
Denny’s Corp. *		132,500		1,379,325
Diamond Resorts International, Inc. *		51,900		1,661,319
DineEquity, Inc.		24,897		2,400,818
El Pollo Loco Holdings, Inc. *(c)		11,900		311,542
Empire Resorts, Inc. *(c)		22,100		119,782
Famous Dave’s of America, Inc. *		6,900		194,580
Fiesta Restaurant Group, Inc. *		39,300		1,986,615
Grand Canyon Education, Inc. *		68,775		3,114,132
Houghton Mifflin Harcourt Co. *		164,800		3,767,328
Ignite Restaurant Group, Inc. *		9,100		32,032
International Speedway Corp., Class A		43,500		1,581,660
Interval Leisure Group, Inc.		60,600		1,502,274
Intrawest Resorts Holdings, Inc. *		31,900		321,552
Isle of Capri Casinos, Inc. *		37,100		527,562
ITT Educational Services, Inc. *(c)		33,300		175,824
Jack in the Box, Inc.		60,610		5,259,130
Jamba, Inc. *(c)		32,160		506,842
K12, Inc. *		58,600		947,562
Krispy Kreme Doughnuts, Inc. *		96,900		1,724,820
La Quinta Holdings, Inc. *		65,000		1,565,200
Liberty Tax, Inc.		6,500		180,050
Life Time Fitness, Inc. *		61,877		4,424,205
LifeLock, Inc. *		118,100		1,725,441
Marriott Vacations Worldwide Corp.		40,500		3,329,505
Monarch Casino & Resort, Inc. *		11,900		217,770
Morgans Hotel Group Co. *		38,000		260,300
Nathan’s Famous, Inc.		5,800		238,612
Noodles & Co. *(c)		15,900		318,318
Papa John’s International, Inc.		44,910		2,756,127
Papa Murphy’s Holdings, Inc. *(c)		11,500		195,845
Penn National Gaming, Inc. *		115,300		1,854,024
Pinnacle Entertainment, Inc. *		94,559		3,475,989
Popeyes Louisiana Kitchen, Inc. *		35,700		1,987,776
Potbelly Corp. *		21,900		328,719
Red Robin Gourmet Burgers, Inc. *		21,700		1,629,453
Regis Corp. *		72,649		1,200,161
Ruby Tuesday, Inc. *		87,200		634,816
Ruth’s Hospitality Group, Inc.		56,600		823,530
Scientific Games Corp., Class A *(c)		77,100		976,857
Shake Shack, Inc., Class A *(c)		9,400		646,250
Sonic Corp.		79,029		2,264,181
Sotheby’s		92,900		3,967,759
Speedway Motorsports, Inc.		15,784		361,454
Steiner Leisure Ltd. *		20,909		1,008,650
Strayer Education, Inc. *		16,400		831,808
Texas Roadhouse, Inc.		106,096		3,564,825
The Cheesecake Factory, Inc.		75,900		3,804,867
The Habit Restaurants, Inc., Class A *(c)		8,100		268,272
The Marcus Corp.		27,300		528,801
Universal Technical Institute, Inc.		43,900		370,955
Vail Resorts, Inc.		54,371		5,394,147
Weight Watchers International, Inc. *(c)		40,600		347,130
Zoe’s Kitchen, Inc. *(c)		8,600		263,418
				111,696,936
Diversified Financials 2.5%
Arlington Asset Investment Corp., Class A		33,300		721,944
Ashford, Inc. *		1,160		115,710
BGC Partners, Inc., Class A		255,600		2,564,946
Calamos Asset Management, Inc., Class A		24,400		301,828
Cash America International, Inc.		41,570		1,077,494
CIFC Corp.		12,194		91,455
Cohen & Steers, Inc.		28,128		1,064,926
Consumer Portfolio Services, Inc. *		24,200		154,638
Cowen Group, Inc., Class A *		169,300		946,387
Credit Acceptance Corp. *		10,108		2,387,510
Diamond Hill Investment Group, Inc.		4,100		747,020

22 See financial notes

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Encore Capital Group, Inc. *		37,800		1,528,632
Enova International, Inc. *		44,836		829,914
Evercore Partners, Inc., Class A		49,100		2,368,584
Ezcorp, Inc., Class A *		77,400		712,080
FBR & Co. *		14,036		301,213
Fifth Street Asset Management, Inc.		15,700		173,171
Financial Engines, Inc. (c)		78,900		3,327,213
First Cash Financial Services, Inc. *		45,900		2,218,806
FXCM, Inc., Class A		66,800		134,268
Gain Capital Holdings, Inc.		34,000		335,920
GAMCO Investors, Inc., Class A		9,700		749,907
Green Dot Corp., Class A *		43,033		692,831
Greenhill & Co., Inc.		42,729		1,689,932
HFF, Inc., Class A		49,800		1,951,662
INTL FCStone, Inc. *		25,100		805,710
Investment Technology Group, Inc. *		55,265		1,574,500
Janus Capital Group, Inc.		230,603		4,127,794
KCG Holdings, Inc., Class A *		67,881		871,592
Ladenburg Thalmann Financial Services, Inc. *		142,600		480,562
Manning & Napier, Inc.		20,900		222,167
MarketAxess Holdings, Inc.		57,060		4,898,601
Marlin Business Services Corp.		11,600		231,652
Medley Management, Inc., Class A (c)		14,400		165,024
Moelis & Co., Class A		10,800		292,140
Nelnet, Inc., Class A		30,500		1,365,485
NewStar Financial, Inc. *		36,500		419,750
Nicholas Financial, Inc. *		13,000		164,190
OM Asset Management plc		34,200		662,112
On Deck Capital, Inc. *(c)		18,400		354,200
Oppenheimer Holdings, Inc., Class A		13,800		329,682
PHH Corp. *		74,363		1,867,999
PICO Holdings, Inc. *		39,800		716,798
Piper Jaffray Cos. *		22,929		1,156,768
PRA Group, Inc. *		78,078		4,276,722
Pzena Investment Management, Inc., Class A		13,700		126,040
RCS Capital Corp., Class A (c)		13,963		119,942
Regional Management Corp. *		15,700		253,555
Resource America, Inc., Class A		16,500		140,910
Safeguard Scientifics, Inc. *		26,900		483,931
Silvercrest Asset Management Group, Inc., Class A		10,000		155,900
Springleaf Holdings, Inc. *		37,800		1,890,000
Stifel Financial Corp. *		99,210		5,242,256
The JG Wentworth Co. *		14,200		142,852
Tiptree Financial, Inc., Class A		12,500		84,250
Virtus Investment Partners, Inc.		10,500		1,403,010
Walter Investment Management Corp. *(c)		57,403		1,010,867
Westwood Holdings Group, Inc.		11,500		673,785
WisdomTree Investments, Inc.		163,200		3,107,328
World Acceptance Corp. *(c)		11,900		1,006,978
				68,013,043
Energy 3.9%
Abraxas Petroleum Corp. *		129,000		490,200
Adams Resources & Energy, Inc.		2,900		135,140
Alon USA Energy, Inc.		40,400		650,036
Alpha Natural Resources, Inc. *(c)		332,200		269,082
American Eagle Energy Corp. *		44,600		7,587
Amyris, Inc. *(c)		41,500		93,790
Approach Resources, Inc. *(c)		57,800		506,906
Arch Coal, Inc. *(c)		326,100		317,687
Ardmore Shipping Corp.		26,500		318,795
Aspen Aerogels, Inc. *		12,000		78,480
Basic Energy Services, Inc. *		46,100		469,759
Bill Barrett Corp. *		75,298		873,457
Bonanza Creek Energy, Inc. *		60,525		1,668,069
Bristow Group, Inc.		54,768		3,402,736
C&J Energy Services Ltd. *		68,600		1,197,070
Callon Petroleum Co. *		102,400		915,456
CARBO Ceramics, Inc. (c)		29,300		1,295,939
Carrizo Oil & Gas, Inc. *		77,311		4,308,542
CHC Group Ltd. *		53,100		63,189
Clayton Williams Energy, Inc. *		8,600		478,762
Clean Energy Fuels Corp. *(c)		108,338		1,069,296
Cloud Peak Energy, Inc. *		92,300		599,027
Comstock Resources, Inc. (c)		71,200		382,344
Contango Oil & Gas Co. *		25,520		639,786
Delek US Holdings, Inc.		93,200		3,440,944
DHT Holdings, Inc.		135,700		1,085,600
Diamondback Energy, Inc. *		66,371		5,480,254
Dorian LPG Ltd. *		10,700		141,882
Eclipse Resources Corp. *(c)		43,600		275,988
Emerald Oil, Inc. *(c)		81,585		52,214
Energy XXI Ltd. (c)		127,806		558,512
Era Group, Inc. *		28,700		636,566
Evolution Petroleum Corp.		30,500		209,840
EXCO Resources, Inc. (c)		222,774		458,914
Exterran Holdings, Inc.		89,200		3,306,644
FMSA Holdings, Inc. *(c)		30,900		271,611
Forum Energy Technologies, Inc. *		87,400		2,032,924
Frontline Ltd. *(c)		102,700		262,912
FX Energy, Inc. *(c)		75,100		101,385
GasLog Ltd.		61,800		1,377,522
Gastar Exploration, Inc. *		104,600		379,698
Geospace Technologies Corp. *		19,800		427,680
Glori Energy, Inc. *(c)		17,900		29,714
Goodrich Petroleum Corp. *(c)		51,000		197,370
Green Plains, Inc.		54,900		1,709,586
Gulf Island Fabrication, Inc.		21,000		276,990
Gulfmark Offshore, Inc., Class A (c)		39,300		589,893
Halcon Resources Corp. *(c)		464,021		691,391
Hallador Energy Co.		15,600		179,244
Harvest Natural Resources, Inc. *		61,800		39,564
Helix Energy Solutions Group, Inc. *		161,307		2,658,339
Hercules Offshore, Inc. *(c)		401,200		323,006
Hornbeck Offshore Services, Inc. *		54,245		1,239,498
Independence Contract Drilling, Inc. *		11,200		85,792

See financial notes 23

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
ION Geophysical Corp. *		206,400		470,592
Isramco, Inc. *		1,400		172,970
Jones Energy, Inc., Class A *		15,900		163,134
Key Energy Services, Inc. *		192,700		470,188
Magnum Hunter Resources Corp. *(c)		291,600		638,604
Matador Resources Co. *		114,700		3,179,484
Matrix Service Co. *		39,700		872,209
McDermott International, Inc. *		376,700		1,977,675
Midstates Petroleum Co., Inc. *(c)		47,300		54,395
Miller Energy Resources, Inc. *(c)		41,600		30,164
Mitcham Industries, Inc. *		18,500		90,650
Natural Gas Services Group, Inc. *		20,500		519,675
Navios Maritime Acquisition Corp.		120,600		459,486
Newpark Resources, Inc. *		126,710		1,300,045
Nordic American Offshore Ltd. *(c)		24,000		226,320
Nordic American Tankers Ltd. (c)		133,500		1,632,705
North Atlantic Drilling Ltd. (c)		106,800		164,472
Northern Oil & Gas, Inc. *(c)		105,500		932,620
Nuverra Environmental Solutions, Inc. *(c)		19,620		79,657
Pacific Ethanol, Inc. *(c)		37,300		446,108
Panhandle Oil & Gas, Inc., Class A		24,200		551,760
Parker Drilling Co. *		181,265		679,744
Parsley Energy, Inc., Class A *		78,579		1,362,560
PDC Energy, Inc. *		60,003		3,404,570
Penn Virginia Corp. *(c)		96,278		643,137
PetroQuest Energy, Inc. *		84,900		227,532
PHI, Inc. - Non Voting Shares *		19,572		613,191
Pioneer Energy Services Corp. *		91,500		681,675
Profire Energy, Inc. *(c)		20,000		33,000
Renewable Energy Group, Inc. *		50,700		466,947
Resolute Energy Corp. *		114,300		141,732
REX American Resources Corp. *		8,500		537,370
Rex Energy Corp. *		71,700		358,500
RigNet, Inc. *		16,900		633,074
Ring Energy, Inc. *		27,300		331,422
Rosetta Resources, Inc. *		112,800		2,575,224
RSP Permian, Inc. *		39,600		1,149,192
Sanchez Energy Corp. *(c)		75,253		1,105,467
Scorpio Tankers, Inc.		243,331		2,272,712
SEACOR Holdings, Inc. *		28,200		2,049,012
SemGroup Corp., Class A		64,065		5,393,632
Ship Finance International Ltd.		85,700		1,350,632
Solazyme, Inc. *(c)		111,500		429,275
Stone Energy Corp. *		82,968		1,416,264
Swift Energy Co. *(c)		60,701		183,317
Synergy Resources Corp. *		127,134		1,523,065
Teekay Tankers Ltd., Class A (c)		120,800		761,040
Tesco Corp.		52,500		675,150
TETRA Technologies, Inc. *		118,074		852,494
TransAtlantic Petroleum Ltd. *		33,200		192,560
Triangle Petroleum Corp. *(c)		102,500		611,925
US Silica Holdings, Inc. (c)		81,000		3,025,350
VAALCO Energy, Inc. *		71,600		176,852
Vantage Drilling Co. *		316,300		126,046
Vertex Energy, Inc. *(c)		17,300		37,368
W&T Offshore, Inc.		49,000		315,070
Warren Resources, Inc. *		116,000		125,280
Western Refining, Inc.		79,354		3,495,544
Westmoreland Coal Co. *		21,500		611,030
Willbros Group, Inc. *		57,300		143,250
				103,896,730
Food & Staples Retailing 0.9%
Casey’s General Stores, Inc.		58,406		4,799,805
Diplomat Pharmacy, Inc. *		21,300		762,966
Fairway Group Holdings Corp. *(c)		42,300		224,613
Ingles Markets, Inc., Class A		20,731		867,800
Liberator Medical Holdings, Inc. (c)		46,200		130,284
Natural Grocers by Vitamin Cottage, Inc. *		12,600		331,632
PriceSmart, Inc.		27,900		2,244,834
Roundy’s, Inc. *		57,600		290,304
Smart & Final Stores, Inc. *		16,400		284,048
SpartanNash, Co.		57,833		1,744,821
SUPERVALU, Inc. *		303,978		2,671,966
The Andersons, Inc.		43,223		1,845,190
The Chefs’ Warehouse, Inc. *		28,300		515,343
The Fresh Market, Inc. *		62,800		2,206,792
United Natural Foods, Inc. *		75,082		5,065,032
Village Super Market, Inc., Class A		11,600		370,388
Weis Markets, Inc.		15,800		700,730
				25,056,548
Food, Beverage & Tobacco 1.8%
22nd Century Group, Inc. *(c)		60,300		60,903
Alico, Inc.		4,700		219,819
Alliance One International, Inc. *		196,600		259,512
B&G Foods, Inc.		78,200		2,377,280
Boulder Brands, Inc. *		91,800		875,772
Cal-Maine Foods, Inc. (c)		47,416		2,119,970
Calavo Growers, Inc.		21,088		1,068,107
Coca-Cola Bottling Co. Consolidated		6,800		768,400
Craft Brew Alliance, Inc. *		13,900		182,785
Darling Ingredients, Inc. *		248,400		3,393,144
Dean Foods Co.		145,000		2,356,250
Diamond Foods, Inc. *		31,900		894,476
Farmer Bros. Co. *		9,100		226,863
Fresh Del Monte Produce, Inc.		53,000		1,957,290
Freshpet, Inc. *(c)		21,500		466,120
Inventure Foods, Inc. *		17,900		174,525
J&J Snack Foods Corp.		22,866		2,385,610
John B. Sanfilippo & Son, Inc.		10,900		566,909
Lancaster Colony Corp.		29,000		2,600,140
Landec Corp. *		44,654		634,533
Lifeway Foods, Inc. *		10,100		204,121
Limoneira Co.		17,600		403,744
National Beverage Corp. *		15,001		335,272
Omega Protein Corp. *		33,400		426,852
Post Holdings, Inc. *		79,099		3,712,907
Sanderson Farms, Inc. (c)		36,002		2,704,470
Seaboard Corp. *		420		1,512,000

24 See financial notes

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Seneca Foods Corp., Class A *		12,400		357,368
Snyder’s-Lance, Inc.		69,600		2,055,288
The Boston Beer Co., Inc. Class A *		12,900		3,196,620
Tootsie Roll Industries, Inc. (c)		28,401		879,863
TreeHouse Foods, Inc. *		63,252		5,139,858
Universal Corp.		35,145		1,652,869
Vector Group Ltd.		113,769		2,519,983
				48,689,623
Health Care Equipment & Services 6.7%
AAC Holdings, Inc. *(c)		11,800		408,988
Abaxis, Inc.		34,300		2,195,200
ABIOMED, Inc. *		60,300		3,812,166
Acadia Healthcare Co., Inc. *		65,089		4,458,596
Accuray, Inc. *		115,500		939,015
Aceto Corp.		46,000		891,480
Addus HomeCare Corp. *		7,800		209,352
Adeptus Health, Inc., Class A *		8,100		514,107
Air Methods Corp. *		59,000		2,696,300
Alliance HealthCare Services, Inc. *		7,100		151,017
Almost Family, Inc. *		11,000		476,080
Amedisys, Inc. *		39,700		1,104,057
AMN Healthcare Services, Inc. *		71,300		1,626,353
Amsurg Corp. *		62,564		3,924,014
Analogic Corp.		17,954		1,517,113
AngioDynamics, Inc. *		41,100		685,959
Anika Therapeutics, Inc. *		21,900		747,228
Antares Pharma, Inc. *(c)		160,700		393,715
AtriCure, Inc. *		41,500		913,415
Atrion Corp.		2,300		747,155
Bio-Reference Laboratories, Inc. *		38,300		1,268,496
BioScrip, Inc. *		100,400		471,880
BioTelemetry, Inc. *		38,700		309,987
Cantel Medical Corp.		51,445		2,304,222
Capital Senior Living Corp. *		44,800		1,172,416
Cardiovascular Systems, Inc. *		41,300		1,292,690
Castlight Health, Inc., Class B *		19,000		143,070
Cerus Corp. *(c)		137,100		608,724
Chemed Corp.		26,276		3,028,309
Civitas Solutions, Inc. *		17,400		326,250
Computer Programs & Systems, Inc.		17,500		915,775
CONMED Corp.		39,300		1,974,039
Connecture, Inc. *(c)		13,900		154,568
CorVel Corp. *		16,600		593,284
Cross Country Healthcare, Inc. *		59,859		664,435
CryoLife, Inc.		37,400		381,480
Cyberonics, Inc. *		41,254		2,512,781
Cynosure, Inc., Class A *		34,944		1,167,828
Derma Sciences, Inc. *		45,800		361,820
DexCom, Inc. *		112,427		7,596,692
Endologix, Inc. *		98,037		1,525,456
Entellus Medical, Inc. *		9,800		269,696
Exactech, Inc. *		15,000		327,750
ExamWorks Group, Inc. *		53,465		2,189,392
Five Star Quality Care, Inc. *		56,200		238,850
Genesis Healthcare, Inc. *		26,800		185,188
GenMark Diagnostics, Inc. *		61,000		585,600
Globus Medical, Inc., Class A *		96,500		2,305,385
Greatbatch, Inc. *		37,000		1,995,040
Haemonetics Corp. *		78,600		3,185,658
Hanger, Inc. *		52,800		1,179,552
HealthEquity, Inc. *		20,300		532,063
HealthSouth Corp.		131,800		5,959,996
HealthStream, Inc. *		30,800		891,352
Healthways, Inc. *		48,800		849,120
HeartWare International, Inc. *		25,300		1,915,463
HMS Holdings Corp. *		138,452		2,355,069
ICU Medical, Inc. *		19,700		1,662,089
Imprivata, Inc. *		8,500		126,905
Inogen, Inc. *		7,600		279,224
Insulet Corp. *		83,600		2,495,460
Integra LifeSciences Holdings Corp. *		36,648		2,154,169
Invacare Corp.		49,211		987,665
IPC Healthcare, Inc. *		24,700		1,208,324
K2M Group Holdings, Inc. *		18,900		397,089
Kindred Healthcare, Inc.		118,659		2,723,224
Landauer, Inc.		13,300		429,058
LDR Holding Corp. *		24,400		825,940
LHC Group, Inc. *		19,700		631,582
Magellan Health, Inc. *		42,800		2,709,240
Masimo Corp. *		66,000		2,228,160
MedAssets, Inc. *		93,100		1,884,344
Medidata Solutions, Inc. *		81,700		4,365,231
Merge Healthcare, Inc. *		114,500		569,065
Meridian Bioscience, Inc.		64,350		1,140,282
Merit Medical Systems, Inc. *		66,300		1,286,883
Molina Healthcare, Inc. *		45,800		2,712,734
National HealthCare Corp.		15,388		974,060
National Research Corp., Class A		12,500		180,250
Natus Medical, Inc. *		46,900		1,768,599
Neogen Corp. *		56,925		2,535,440
Nevro Corp. *		13,400		603,268
NuVasive, Inc. *		70,400		3,148,992
NxStage Medical, Inc. *		92,700		1,699,191
Omnicell, Inc. *		52,300		1,858,219
OraSure Technologies, Inc. *		87,400		550,620
Orthofix International N.V. *		28,200		911,142
Owens & Minor, Inc.		92,200		3,108,984
Oxford Immunotec Global PLC *		29,400		390,138
PharMerica Corp. *		43,100		1,235,246
PhotoMedex, Inc. *(c)		18,000		37,080
Quality Systems, Inc.		73,100		1,139,995
Quidel Corp. *		40,300		938,990
RadNet, Inc. *		48,000		402,240
Rockwell Medical, Inc. *(c)		68,400		664,164
Roka Bioscience, Inc. *(c)		11,800		34,574
RTI Surgical, Inc. *		73,900		413,840
Second Sight Medical Products, Inc. *(c)		4,500		52,290
Select Medical Holdings Corp.		115,500		1,680,525
Sientra, Inc. *		11,000		192,280
STAAR Surgical Co. *(c)		52,900		468,165
STERIS Corp.		90,388		6,010,802
Surgical Care Affiliates, Inc. *		20,009		754,339
SurModics, Inc. *		20,400		514,488
Symmetry Surgical, Inc. *		13,475		104,162
Tandem Diabetes Care, Inc. *		13,300		177,555
Team Health Holdings, Inc. *		106,058		6,317,875

See financial notes 25

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
The Ensign Group, Inc.		36,850		1,551,754
The Providence Service Corp. *		17,400		739,848
The Spectranetics Corp. *		63,236		1,622,003
Thoratec Corp. *		81,200		3,256,932
Tornier N.V. *		52,200		1,350,414
TransEnterix, Inc. *(c)		42,100		158,296
Triple-S Management Corp., Class B *		40,600		760,032
TriVascular Technologies, Inc. *(c)		10,900		79,570
Trupanion, Inc. *(c)		14,200		105,222
U.S. Physical Therapy, Inc.		19,300		910,188
Unilife Corp. *(c)		221,152		740,859
Universal American Corp. *		63,902		638,381
Utah Medical Products, Inc.		7,300		393,543
Vascular Solutions, Inc. *		27,136		869,980
Veracyte, Inc. *		8,500		77,775
Vocera Communications, Inc. *		30,100		342,839
WellCare Health Plans, Inc. *		67,000		5,187,810
West Pharmaceutical Services, Inc.		108,550		5,783,544
Wright Medical Group, Inc. *		73,200		1,857,084
Zeltiq Aesthetics, Inc. *		42,600		1,307,820
				179,568,761
Household & Personal Products 0.3%
Central Garden & Pet Co., Class A *		66,600		652,680
Elizabeth Arden, Inc. *(c)		36,298		510,713
HRG Group, Inc. *		122,000		1,528,660
Inter Parfums, Inc.		25,400		766,572
Medifast, Inc. *		20,400		612,000
Nature’s Sunshine Products, Inc.		15,000		195,150
Nutraceutical International Corp. *		12,300		239,850
Oil-Dri Corp. of America		6,887		226,031
Orchids Paper Products Co.		11,800		253,582
Revlon, Inc., Class A *		18,602		727,524
Synutra International, Inc. *		23,200		168,432
The Female Health Co. (c)		31,000		90,520
USANA Health Sciences, Inc. *		9,100		1,035,034
WD-40 Co.		22,300		1,805,408
				8,812,156
Insurance 2.4%
Ambac Financial Group, Inc. *		66,900		1,539,369
American Equity Investment Life Holding Co.		109,064		2,939,275
AMERISAFE, Inc.		30,435		1,375,358
AmTrust Financial Services, Inc.		46,877		2,787,775
Argo Group International Holdings Ltd.		42,010		2,058,070
Atlas Financial Holdings, Inc. *		16,900		311,805
Baldwin & Lyons, Inc., Class B		13,000		294,970
Citizens, Inc. *(c)		62,600		353,064
CNO Financial Group, Inc.		310,268		5,274,556
Crawford & Co., Class B		44,000		359,480
Donegal Group, Inc., Class A		10,400		157,144
eHealth, Inc. *		23,600		289,336
EMC Insurance Group, Inc.		6,200		214,768
Employers Holdings, Inc.		44,900		1,096,009
Enstar Group Ltd. *		13,894		1,973,504
FBL Financial Group, Inc., Class A		16,068		936,282
Federated National Holding Co.		20,246		583,085
Fidelity & Guaranty Life		14,800		331,224
First American Financial Corp.		159,700		5,555,963
Global Indemnity plc *		10,755		295,225
Greenlight Capital Re Ltd., Class A *		42,789		1,300,358
Hallmark Financial Services, Inc. *		21,200		234,896
HCI Group, Inc.		13,800		601,404
Heritage Insurance Holdings, Inc. *		16,500		330,825
Horace Mann Educators Corp.		59,578		2,023,865
Independence Holding Co.		11,248		139,925
Infinity Property & Casualty Corp.		16,592		1,230,297
James River Group Holdings Ltd.		18,600		439,704
Kansas City Life Insurance Co.		5,700		255,816
Kemper Corp.		68,200		2,569,094
Maiden Holdings Ltd.		76,900		1,117,357
Meadowbrook Insurance Group, Inc.		90,300		771,162
Montpelier Re Holdings Ltd.		55,100		2,099,861
National General Holdings Corp.		52,100		1,007,614
National Interstate Corp.		12,498		350,194
National Western Life Insurance Co., Class A		3,494		837,197
OneBeacon Insurance Group Ltd., Class A		33,400		503,672
Patriot National, Inc. *		15,800		212,826
Primerica, Inc.		80,100		3,702,222
RLI Corp.		64,420		3,199,097
Safety Insurance Group, Inc.		19,770		1,149,626
Selective Insurance Group, Inc.		84,514		2,276,807
State Auto Financial Corp.		24,726		584,028
State National Cos., Inc.		46,500		443,610
Stewart Information Services Corp.		34,100		1,244,650
Symetra Financial Corp.		110,600		2,626,750
The Navigators Group, Inc. *		16,770		1,308,898
The Phoenix Cos., Inc. *		7,790		265,717
Third Point Reinsurance Ltd. *		83,300		1,122,884
United Fire Group, Inc.		32,300		964,801
United Insurance Holdings Corp.		24,400		405,772
Universal Insurance Holdings, Inc.		43,922		1,055,006
				65,102,197
Materials 4.4%
A. Schulman, Inc.		45,609		1,936,102
A.M. Castle & Co. *(c)		29,100		114,072
AEP Industries, Inc. *		5,800		290,580
AK Steel Holding Corp. *		262,900		1,335,532
American Vanguard Corp.		40,900		446,219
Ampco-Pittsburgh Corp.		11,400		182,286
Axiall Corp.		106,221		4,333,817
Balchem Corp.		46,900		2,458,498
Berry Plastics Group, Inc. *		135,900		4,650,498
Boise Cascade Co. *		61,500		2,134,050
Calgon Carbon Corp.		79,785		1,770,429

26 See financial notes

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Century Aluminum Co. *		73,400		946,126
Chase Corp.		10,300		368,843
Chemtura Corp. *		108,712		3,275,493
Clearwater Paper Corp. *		30,000		1,919,100
Coeur Mining, Inc. *		205,013		1,070,168
Commercial Metals Co.		172,600		2,865,160
Deltic Timber Corp.		17,704		1,133,056
Ferro Corp. *		116,600		1,572,934
Flotek Industries, Inc. *		78,900		1,127,481
FutureFuel Corp.		31,000		336,970
Globe Specialty Metals, Inc.		94,500		1,882,440
Gold Resource Corp. (c)		67,484		227,421
Graphic Packaging Holding Co.		501,715		7,074,181
H.B. Fuller Co.		73,416		3,066,586
Handy & Harman Ltd. *		4,800		170,064
Hawkins, Inc.		15,500		611,475
Haynes International, Inc.		17,525		779,337
Headwaters, Inc. *		110,000		1,933,800
Hecla Mining Co.		545,640		1,647,833
Horsehead Holding Corp. *		83,900		1,254,305
Innophos Holdings, Inc.		32,900		1,738,436
Innospec, Inc.		35,600		1,555,720
Intrepid Potash, Inc. *		89,300		1,118,929
Kaiser Aluminum Corp.		28,950		2,326,711
KapStone Paper & Packaging Corp.		125,000		3,493,750
KMG Chemicals, Inc.		12,300		360,144
Koppers Holdings, Inc.		30,900		694,632
Kraton Performance Polymers, Inc. *		54,400		1,226,176
Kronos Worldwide, Inc.		30,700		412,915
Louisiana-Pacific Corp. *		217,718		3,318,022
LSB Industries, Inc. *		28,000		1,187,480
Marrone Bio Innovations, Inc. *(c)		16,800		56,112
Materion Corp.		33,200		1,327,668
Minerals Technologies, Inc.		52,522		3,557,315
Molycorp, Inc. *		267,100		246,480
Myers Industries, Inc.		43,900		709,863
Neenah Paper, Inc.		24,753		1,496,814
Noranda Aluminum Holding Corp.		75,000		250,500
Olin Corp.		123,400		3,644,002
Olympic Steel, Inc.		12,200		133,590
OM Group, Inc.		48,100		1,444,924
OMNOVA Solutions, Inc. *		65,700		524,943
P.H. Glatfelter Co.		63,800		1,582,240
PolyOne Corp.		134,513		5,252,733
Quaker Chemical Corp.		20,100		1,672,722
Rentech, Inc. *		441,900		530,280
Resolute Forest Products, Inc. *		95,700		1,475,694
RTI International Metals, Inc. *		47,766		1,798,390
Ryerson Holding Corp. *		14,000		77,560
Schnitzer Steel Industries, Inc., Class A		37,800		658,476
Schweitzer-Mauduit International, Inc.		44,700		1,976,187
Senomyx, Inc. *(c)		62,400		361,296
Sensient Technologies Corp.		74,424		4,864,353
Stepan Co.		28,500		1,451,505
Stillwater Mining Co. *		187,900		2,523,497
SunCoke Energy, Inc.		96,800		1,696,904
Trecora Resources *		27,400		328,800
Tredegar Corp.		35,100		718,497
Trinseo S.A. *		15,600		355,212
Tronox Ltd., Class A		90,200		1,889,690
UFP Technologies, Inc. *		7,500		152,175
United States Lime & Minerals, Inc.		2,700		178,200
Universal Stainless & Alloy Products, Inc. *		9,500		199,500
US Concrete, Inc. *		19,200		696,960
Walter Energy, Inc. (c)		108,364		54,973
Wausau Paper Corp.		58,500		545,220
Worthington Industries, Inc.		75,460		2,039,684
Zep, Inc.		32,600		648,088
				117,468,818
Media 1.4%
A. H. Belo Corp., Class A		26,900		179,961
AMC Entertainment Holdings, Inc., Class A		31,500		946,890
Carmike Cinemas, Inc. *		37,900		1,143,822
Central European Media Enterprises Ltd., Class A *		109,100		300,025
Cinedigm Corp., Class A *		112,300		93,209
Crown Media Holdings, Inc., Class A *		46,700		175,125
Cumulus Media, Inc., Class A *		197,200		449,616
Daily Journal Corp. *		2,000		402,020
Dex Media, Inc. *(c)		24,400		64,172
Entercom Communications Corp., Class A *		43,000		510,840
Entravision Communications Corp., Class A		78,600		514,044
Eros International plc *		37,890		670,274
Global Eagle Entertainment, Inc. *(c)		55,900		713,843
Gray Television, Inc. *		81,400		1,079,364
Harte-Hanks, Inc.		75,416		512,075
Hemisphere Media Group, Inc. *(c)		12,300		155,472
Journal Media Group, Inc. *		25,419		236,142
Lee Enterprises, Inc. *		78,600		235,800
Loral Space & Communications, Inc. *		20,500		1,414,500
Martha Stewart Living Omnimedia, Inc., Class A *		58,700		322,850
MDC Partners, Inc., Class A		64,480		1,350,211
Media General, Inc. *		125,822		2,125,134
Meredith Corp.		52,200		2,716,488
National CineMedia, Inc.		86,800		1,322,832
New Media Investment Group, Inc.		64,082		1,482,217
Nexstar Broadcasting Group, Inc., Class A		44,600		2,607,316
Radio One, Inc., Class D *		33,900		121,023
ReachLocal, Inc. *		13,400		37,520
Reading International, Inc., Class A *		23,000		306,360
Rentrak Corp. *		14,900		706,260
Saga Communications, Inc., Class A		6,400		255,936
Salem Media Group, Inc.		14,100		68,808

See financial notes 27

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Scholastic Corp.		38,469		1,563,380
SFX Entertainment, Inc. *(c)		64,800		283,176
Sinclair Broadcast Group, Inc., Class A		107,435		3,291,808
Sizmek, Inc. *		36,700		255,432
The E.W. Scripps Co., Class A		81,971		1,909,105
The McClatchy Co., Class A *		102,100		141,919
The New York Times Co., Class A		213,000		2,852,070
Time, Inc.		163,347		3,729,212
Townsquare Media, Inc., Class A *		10,100		137,966
World Wrestling Entertainment, Inc., Class A (c)		41,400		555,588
				37,939,805
Pharmaceuticals, Biotechnology & Life Sciences 8.5%
ACADIA Pharmaceuticals, Inc. *		120,600		4,120,902
Accelerate Diagnostics, Inc. *(c)		33,300		759,240
Acceleron Pharma, Inc. *		24,100		666,365
AcelRx Pharmaceuticals, Inc. *(c)		40,200		160,398
Achaogen, Inc. *		10,100		56,459
Achillion Pharmaceuticals, Inc. *		170,889		1,495,279
Acorda Therapeutics, Inc. *		64,939		1,952,716
Actinium Pharmaceuticals, Inc. *(c)		66,959		168,737
Adamas Pharmaceuticals, Inc. *		5,500		94,985
Aegerion Pharmaceuticals, Inc. *		43,100		1,002,506
Aerie Pharmaceuticals, Inc. *		16,000		154,240
Affymetrix, Inc. *		110,900		1,345,217
Agenus, Inc. *		91,300		603,493
Agios Pharmaceuticals, Inc. *		21,100		1,948,374
Akebia Therapeutics, Inc. *(c)		11,500		88,205
Akorn, Inc. *		94,720		3,944,141
Albany Molecular Research, Inc. *		40,600		733,236
Alder Biopharmaceuticals, Inc. *		16,700		425,850
Alimera Sciences, Inc. *(c)		45,500		198,380
AMAG Pharmaceuticals, Inc. *		39,400		2,008,218
Amphastar Pharmaceuticals, Inc. *		12,700		183,642
Ampio Pharmaceuticals, Inc. *(c)		58,200		140,262
Anacor Pharmaceuticals, Inc. *		50,500		2,660,845
ANI Pharmaceuticals, Inc. *		10,100		615,898
Applied Genetic Technologies Corp. *		7,100		135,894
Aratana Therapeutics, Inc. *		50,500		651,955
Ardelyx, Inc. *		8,500		89,250
Arena Pharmaceuticals, Inc. *		365,000		1,591,400
ARIAD Pharmaceuticals, Inc. *(c)		241,800		2,096,406
Array BioPharma, Inc. *		220,479		1,377,994
Arrowhead Research Corp. *(c)		76,100		525,090
Atara Biotherapeutics, Inc. *		11,900		493,255
Auspex Pharmaceuticals, Inc. *		15,700		1,583,973
Avalanche Biotechnologies, Inc. *		10,100		321,786
Bellicum Pharmaceuticals, Inc. *		14,200		340,516
Bio-Path Holdings, Inc. *(c)		107,700		167,474
BioCryst Pharmaceuticals, Inc. *		102,800		955,012
BioDelivery Sciences International, Inc. *		60,000		483,600
BioSpecifics Technologies Corp. *		5,300		203,043
BioTime, Inc. *(c)		83,500		428,355
Bluebird Bio, Inc. *		36,883		4,912,447
Calithera Biosciences, Inc. *(c)		19,000		190,190
Cambrex Corp. *		47,100		1,812,879
Cara Therapeutics, Inc. *		8,000		86,000
Catalent, Inc. *		72,200		2,077,194
Celldex Therapeutics, Inc. *		147,500		3,540,000
Cellular Dynamics International, Inc. *		14,300		236,236
Cempra, Inc. *		46,278		1,457,294
Cepheid *		103,500		5,806,350
ChemoCentryx, Inc. *		35,000		234,150
Chimerix, Inc. *		47,100		1,601,400
Clovis Oncology, Inc. *		36,200		2,909,032
Coherus Biosciences, Inc. *		12,100		263,417
Corcept Therapeutics, Inc. *		68,400		394,668
CTI BioPharma, Corp. *(c)		190,800		339,624
Cytokinetics, Inc. *		45,900		288,711
Cytori Therapeutics, Inc. *(c)		190,900		167,038
CytRx Corp. *(c)		81,800		359,102
Depomed, Inc. *		86,900		2,021,294
Dermira, Inc. *		9,200		135,700
Dicerna Pharmaceuticals, Inc. *		5,200		104,364
Dyax Corp. *		220,459		5,271,175
Dynavax Technologies Corp. *(c)		45,700		919,255
Egalet Corp. *(c)		9,500		87,020
Eleven Biotherapeutics, Inc. *		7,500		88,800
Emergent Biosolutions, Inc. *		43,700		1,297,453
Enanta Pharmaceuticals, Inc. *		15,200		520,448
Endocyte, Inc. *(c)		50,400		292,320
Enzo Biochem, Inc. *		50,100		140,280
Epizyme, Inc. *		26,000		424,060
Esperion Therapeutics, Inc. *		10,500		998,865
Exact Sciences Corp. *(c)		134,062		2,801,896
Exelixis, Inc. *(c)		292,872		752,681
FibroGen, Inc. *		12,600		292,950
Five Prime Therapeutics, Inc. *		33,300		667,998
Flex Pharma, Inc. *(c)		9,700		162,184
Flexion Therapeutics, Inc. *		7,800		124,956
Fluidigm Corp. *		43,100		1,614,526
Foundation Medicine, Inc. *(c)		20,500		932,955
Galectin Therapeutics, Inc. *(c)		26,400		78,936
Galena Biopharma, Inc. *(c)		189,700		256,095
Genocea Biosciences, Inc. *		7,100		72,704
Genomic Health, Inc. *		22,700		614,489
Geron Corp. *		231,200		836,944
Halozyme Therapeutics, Inc. *		154,500		2,297,415
Heron Therapeutics, Inc. *		40,950		442,260
Horizon Pharma plc *		116,900		3,287,228
Hyperion Therapeutics, Inc. *		20,000		919,200
Idera Pharmaceuticals, Inc. *(c)		151,729		426,358
IGI Laboratories, Inc. *(c)		58,900		299,212
Immune Design, Corp. *		8,200		183,926
ImmunoGen, Inc. *		128,000		1,058,560
Immunomedics, Inc. *(c)		132,300		476,280
Impax Laboratories, Inc. *		105,400		4,770,404
INC Research Holdings, Inc., Class A *		15,400		516,516
Infinity Pharmaceuticals, Inc. *		68,300		865,361
Inovio Pharmaceuticals, Inc. *(c)		88,300		720,528
Insmed, Inc. *		97,800		1,959,912
Insys Therapeutics, Inc. *		14,700		772,779

28 See financial notes

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Intersect ENT, Inc. *		8,400		210,798
Intra-Cellular Therapies, Inc. *		31,300		640,085
Intrexon Corp. *(c)		55,900		2,170,597
Invitae Corp. *		14,200		155,490
Ironwood Pharmaceuticals, Inc. *		175,300		2,394,598
Isis Pharmaceuticals, Inc. *		179,200		10,164,224
Karyopharm Therapeutics, Inc. *(c)		23,251		631,497
Keryx Biopharmaceuticals, Inc. *(c)		150,634		1,605,758
Kindred Biosciences, Inc. *		12,900		87,978
Kite Pharma, Inc. *(c)		15,100		760,738
KYTHERA Biopharmaceuticals, Inc. *		30,500		1,332,545
Lannett Co., Inc. *		37,700		2,167,750
Lexicon Pharmaceuticals, Inc. *(c)		324,100		324,100
Ligand Pharmaceuticals, Inc. *		29,900		2,321,436
Loxo Oncology, Inc. *(c)		8,900		101,104
Luminex Corp. *		53,200		825,664
MacroGenics, Inc. *		29,300		838,273
MannKind Corp. *(c)		334,600		1,435,434
Merrimack Pharmaceuticals, Inc. *		150,600		1,671,660
MiMedx Group, Inc. *		131,700		1,237,980
Mirati Therapeutics, Inc. *(c)		10,500		291,795
Momenta Pharmaceuticals, Inc. *		71,144		1,241,463
NanoString Technologies, Inc. *		14,700		175,518
NanoViricides, Inc. *(c)		58,800		101,136
Navidea Biopharmaceuticals, Inc. *(c)		221,100		298,485
Nektar Therapeutics *		194,571		1,852,316
NeoStem, Inc. *(c)		34,700		99,936
Neuralstem, Inc. *(c)		100,900		170,521
Neurocrine Biosciences, Inc. *		129,127		4,401,939
NewLink Genetics Corp. *(c)		29,100		1,297,860
Northwest Biotherapeutics, Inc. *(c)		70,700		555,702
Novavax, Inc. *		421,736		3,260,019
Ocular Therapeutix, Inc. *		8,300		182,185
Ohr Pharmaceutical, Inc. *(c)		30,900		86,829
Omeros Corp. *(c)		57,100		1,148,852
OncoMed Pharmaceuticals, Inc. *(c)		18,500		443,630
Oncothyreon, Inc. *		103,800		155,700
Ophthotech Corp. *		20,400		923,712
OPKO Health, Inc. *(c)		300,000		4,128,000
Orexigen Therapeutics, Inc. *(c)		189,500		1,245,015
Organovo Holdings, Inc. *(c)		91,700		416,318
Osiris Therapeutics, Inc. *		37,100		562,807
Otonomy, Inc. *		10,500		275,520
OvaScience, Inc. *(c)		29,800		737,401
Pacific Biosciences of California, Inc. *		85,600		441,696
Pacira Pharmaceuticals, Inc. *		53,400		3,656,832
Pain Therapeutics, Inc. *		55,800		113,832
PAREXEL International Corp. *		85,918		5,462,237
PDL BioPharma, Inc.		239,600		1,598,132
Peregrine Pharmaceuticals, Inc. *(c)		255,100		334,181
Pernix Therapeutics Holdings, Inc. *		48,800		311,344
Phibro Animal Health Corp., Class A		21,500		682,840
Portola Pharmaceuticals, Inc. *		70,200		2,505,438
POZEN, Inc. *		35,400		276,828
PRA Health Sciences, Inc. *		30,500		868,640
Prestige Brands Holdings, Inc. *		78,200		3,069,350
Progenics Pharmaceuticals, Inc. *		106,000		524,700
Prothena Corp. plc *		48,384		1,568,125
PTC Therapeutics, Inc. *		37,200		2,185,500
Puma Biotechnology, Inc. *		37,000		6,681,460
Radius Health, Inc. *		13,600		487,424
Raptor Pharmaceutical Corp. *		108,100		1,093,972
Receptos, Inc. *		32,685		4,815,808
Regado Biosciences, Inc. *		6,701		7,907
Regulus Therapeutics, Inc. *(c)		23,300		292,415
Relypsa, Inc. *		31,900		922,867
Repligen Corp. *		49,100		1,448,941
Repros Therapeutics, Inc. *		32,700		251,463
Retrophin, Inc. *		41,800		900,372
Revance Therapeutics, Inc. *		13,813		271,771
Rigel Pharmaceuticals, Inc. *		153,400		653,484
Sage Therapeutics, Inc. *		8,000		424,000
Sagent Pharmaceuticals, Inc. *		29,769		693,915
Sangamo BioSciences, Inc. *		99,700		1,233,289
Sarepta Therapeutics, Inc. *(c)		60,900		742,980
SciClone Pharmaceuticals, Inc. *		78,000		637,260
Sequenom, Inc. *(c)		166,100		737,484
Spark Therapeutics, Inc. *(c)		12,500		715,875
Spectrum Pharmaceuticals, Inc. *		86,500		488,725
Stemline Therapeutics, Inc. *		28,000		388,920
Sucampo Pharmaceuticals, Inc., Class A *		22,600		401,376
Sunesis Pharmaceuticals, Inc. *		72,600		169,884
Supernus Pharmaceuticals, Inc. *		43,000		550,400
Synageva BioPharma Corp. *(c)		35,249		3,241,498
Synergy Pharmaceuticals, Inc. *(c)		140,600		492,100
Synta Pharmaceuticals Corp. *		87,300		196,425
T2 Biosystems, Inc. *(c)		9,200		142,324
TESARO, Inc. *		32,700		1,781,169
Tetraphase Pharmaceuticals, Inc. *		46,500		1,640,520
TG Therapeutics, Inc. *		41,100		573,756
The Medicines Co. *		101,728		2,605,254
TherapeuticsMD, Inc. *		200,755		1,300,892
Theravance Biopharma, Inc. *(c)		34,500		552,000
Theravance, Inc. (c)		120,800		1,963,000
Threshold Pharmaceuticals, Inc. *		88,794		314,331
Tokai Pharmaceuticals, Inc. *(c)		7,400		74,000
Ultragenyx Pharmaceutical, Inc. *		14,579		822,693
Vanda Pharmaceuticals, Inc. *(c)		60,600		554,490
Verastem, Inc. *		47,100		390,930
Versartis, Inc. *(c)		10,200		174,216
Vitae Pharmaceuticals, Inc. *		7,400		98,642
Vital Therapies, Inc. *(c)		7,600		184,756
VIVUS, Inc. *(c)		110,600		246,638
Xencor, Inc. *		30,700		436,554
XenoPort, Inc. *		98,100		581,733
XOMA Corp. *		150,400		451,200
Zafgen, Inc. *(c)		11,000		342,320
ZIOPHARM Oncology, Inc. *(c)		144,409		1,272,243
Zogenix, Inc. *		246,600		342,774

See financial notes 29

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
ZS Pharma, Inc. *(c)		10,100		384,507
				229,057,610
Real Estate 9.2%
Acadia Realty Trust		102,257		3,159,741
AG Mortgage Investment Trust, Inc.		41,300		793,786
Agree Realty Corp.		25,500		784,890
Alexander & Baldwin, Inc.		71,500		2,894,320
Alexander’s, Inc.		3,400		1,466,148
Altisource Asset Management Corp. *		2,100		470,400
Altisource Portfolio Solutions S.A. *(c)		19,887		482,260
Altisource Residential Corp.		87,800		1,681,370
American Assets Trust, Inc.		52,100		2,073,580
American Capital Mortgage Investment Corp.		76,700		1,345,318
American Residential Properties, Inc. *		47,200		885,472
Anworth Mortgage Asset Corp.		181,200		920,496
Apollo Commercial Real Estate Finance, Inc.		91,400		1,562,026
Apollo Residential Mortgage, Inc.		50,875		806,878
Ares Commercial Real Estate Corp.		41,900		475,565
Armada Hoffler Properties, Inc.		40,500		415,935
ARMOUR Residential REIT, Inc.		566,600		1,699,800
Ashford Hospitality Prime, Inc.		37,220		582,865
Ashford Hospitality Trust, Inc.		128,682		1,165,859
Associated Estates Realty Corp.		88,000		2,508,000
AV Homes, Inc. *		15,600		246,168
Campus Crest Communities, Inc.		112,200		710,226
Capstead Mortgage Corp.		155,961		1,816,946
CareTrust REIT, Inc.		42,265		527,890
CatchMark Timber Trust, Inc., Class A		28,151		326,552
Cedar Realty Trust, Inc.		119,200		833,208
Chambers Street Properties		374,500		2,808,750
Chatham Lodging Trust		55,134		1,523,904
Chesapeake Lodging Trust		82,800		2,628,900
Colony Capital, Inc., Class A		163,826		4,244,732
Consolidated-Tomoka Land Co.		7,600		416,024
CorEnergy Infrastructure Trust, Inc.		66,700		452,893
CoreSite Realty Corp.		31,300		1,504,904
Cousins Properties, Inc.		337,573		3,287,961
CubeSmart		247,243		5,703,896
CyrusOne, Inc.		68,348		2,219,943
CYS Investments, Inc.		252,800		2,254,976
DCT Industrial Trust, Inc.		125,275		4,139,086
DiamondRock Hospitality Co.		288,917		3,917,715
DuPont Fabros Technology, Inc.		94,000		2,928,100
Dynex Capital, Inc.		92,600		740,800
Easterly Government Properties, Inc. *		21,600		340,200
EastGroup Properties, Inc.		48,090		2,750,748
Education Realty Trust, Inc.		68,713		2,310,131
Empire State Realty Trust, Inc., Class A		134,400		2,419,200
EPR Properties		86,200		4,971,154
Equity One, Inc.		100,237		2,468,837
Excel Trust, Inc.		90,284		1,431,001
FelCor Lodging Trust, Inc.		215,913		2,398,793
First Industrial Realty Trust, Inc.		168,626		3,326,991
First Potomac Realty Trust		90,700		972,304
Forestar Group, Inc. *		49,700		733,572
Franklin Street Properties Corp.		134,065		1,583,308
FRP Holdings, Inc. *		8,700		302,064
Getty Realty Corp.		39,242		681,634
Gladstone Commercial Corp.		34,300		610,883
Government Properties Income Trust		100,847		2,101,651
Gramercy Property Trust, Inc.		86,322		2,360,043
Great Ajax Corp. *		9,400		133,292
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		38,500		731,500
Hatteras Financial Corp.		153,281		2,768,255
Healthcare Realty Trust, Inc.		142,081		3,637,274
Hersha Hospitality Trust		291,700		1,875,631
Highwoods Properties, Inc.		138,207		5,948,429
Hudson Pacific Properties, Inc.		109,311		3,296,820
InfraREIT, Inc.		34,700		1,082,293
Inland Real Estate Corp.		133,336		1,372,027
Invesco Mortgage Capital, Inc.		189,310		2,915,374
Investors Real Estate Trust		187,002		1,340,804
iStar Financial, Inc. *		135,400		1,833,316
Kennedy-Wilson Holdings, Inc.		118,334		2,932,317
Kite Realty Group Trust		47,375		1,241,225
LaSalle Hotel Properties		168,379		6,177,826
Lexington Realty Trust		314,774		2,917,955
LTC Properties, Inc.		52,651		2,288,212
Mack-Cali Realty Corp.		130,100		2,335,295
Marcus & Millichap, Inc. *		13,600		481,168
Medical Properties Trust, Inc.		317,167		4,433,995
Monmouth Real Estate Investment Corp.		84,500		872,885
National Health Investors, Inc.		56,468		3,767,545
New Residential Investment Corp.		299,798		5,108,558
New York Mortgage Trust, Inc. (c)		152,400		1,190,244
New York REIT, Inc.		249,088		2,460,989
One Liberty Properties, Inc.		18,700		420,376
Owens Realty Mortgage, Inc.		15,800		212,984
Parkway Properties, Inc.		113,593		1,848,158
Pebblebrook Hotel Trust		108,000		4,637,520
Pennsylvania Real Estate Investment Trust		108,567		2,454,700
PennyMac Mortgage Investment Trust		115,800		2,426,010
Physicians Realty Trust		101,150		1,679,090
Potlatch Corp.		60,403		2,229,475
PS Business Parks, Inc.		28,438		2,171,241
QTS Realty Trust, Inc., Class A		23,574		855,029
RAIT Financial Trust		119,300		773,064
Ramco-Gershenson Properties Trust		111,121		1,942,395
RE/MAX Holdings, Inc., Class A		16,800		567,672
Redwood Trust, Inc.		123,500		2,122,965
Resource Capital Corp.		196,149		865,017
Retail Opportunity Investments Corp.		133,347		2,237,563
Rexford Industrial Realty, Inc.		88,116		1,309,404

30 See financial notes

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
RLJ Lodging Trust		196,582		5,832,588
Rouse Properties, Inc.		54,500		952,115
Ryman Hospitality Properties, Inc.		64,985		3,745,735
Sabra Health Care REIT, Inc.		89,896		2,686,092
Saul Centers, Inc.		16,900		850,408
Select Income REIT		54,000		1,252,260
Silver Bay Realty Trust Corp.		56,433		873,019
Sovran Self Storage, Inc.		53,445		4,667,886
STAG Industrial, Inc.		82,500		1,792,725
Starwood Waypoint Residential Trust		57,400		1,477,476
STORE Capital Corp.		50,800		1,066,800
Strategic Hotels & Resorts, Inc. *		399,184		4,670,453
Summit Hotel Properties, Inc.		125,500		1,652,835
Sun Communities, Inc.		72,500		4,499,350
Sunstone Hotel Investors, Inc.		308,208		4,801,881
Tejon Ranch Co. *		19,092		471,572
Terreno Realty Corp.		62,600		1,332,128
The Geo Group, Inc.		109,980		4,289,220
The St. Joe Co. *		92,700		1,617,615
Trade Street Residential, Inc.		27,200		189,584
UMH Properties, Inc.		31,900		321,233
Universal Health Realty Income Trust		19,444		965,589
Urstadt Biddle Properties, Inc., Class A		47,174		978,860
Washington Real Estate Investment Trust		99,282		2,454,251
Western Asset Mortgage Capital Corp. (c)		59,656		871,574
Whitestone REIT		30,700		451,290
				247,831,228
Retailing 4.1%
1-800-Flowers.com, Inc., Class A *		34,800		367,836
Aeropostale, Inc. *		115,000		355,350
America’s Car-Mart, Inc. *		11,500		590,410
American Eagle Outfitters, Inc.		298,049		4,741,960
ANN, Inc. *		69,000		2,612,340
Asbury Automotive Group, Inc. *		45,000		3,781,350
Barnes & Noble, Inc. *		63,410		1,388,679
bebe stores, Inc.		51,449		170,296
Big 5 Sporting Goods Corp.		34,384		468,998
Blue Nile, Inc. *		19,000		516,990
Boot Barn Holdings, Inc. *		5,600		138,992
Brown Shoe Co., Inc.		68,275		2,027,768
Build-A-Bear Workshop, Inc. *		18,100		333,583
Burlington Stores, Inc. *		42,000		2,165,940
Christopher & Banks Corp. *		51,800		307,692
Citi Trends, Inc. *		24,846		565,992
Conn’s, Inc. *(c)		40,600		1,135,582
Core-Mark Holding Co., Inc.		34,641		1,825,927
Destination Maternity Corp.		18,400		216,936
Destination XL Group, Inc. *		56,400		274,668
EVINE Live, Inc. *		56,000		333,760
Express, Inc. *		132,400		2,158,120
Five Below, Inc. *		79,600		2,684,112
Francesca’s Holdings Corp. *		62,800		1,063,204
Fred’s, Inc., Class A		52,800		890,736
FTD Cos., Inc. *		28,097		801,888
Gaiam, Inc., Class A *		22,000		144,320
Genesco, Inc. *		36,744		2,483,527
Group 1 Automotive, Inc.		35,500		2,803,790
Guess?, Inc.		97,500		1,785,225
Haverty Furniture Cos, Inc.		30,300		650,238
hhgregg, Inc. *		18,300		104,676
Hibbett Sports, Inc. *		37,575		1,758,510
HSN, Inc.		49,555		3,093,223
Kirkland’s, Inc. *		22,400		531,776
Lands’ End, Inc. *		24,200		710,996
Lithia Motors, Inc., Class A		33,400		3,330,982
Lumber Liquidators Holdings, Inc. *(c)		39,398		1,083,051
MarineMax, Inc. *		37,700		832,416
Mattress Firm Holding Corp. *		22,000		1,299,760
Monro Muffler Brake, Inc.		46,546		2,787,640
New York & Co., Inc. *		36,400		92,092
Nutrisystem, Inc.		39,948		761,009
Office Depot, Inc. *		802,829		7,402,083
Orbitz Worldwide, Inc. *		75,700		887,204
Outerwall, Inc. (c)		28,700		1,906,541
Overstock.com, Inc. *		15,500		332,785
Pacific Sunwear of California, Inc. *		65,800		138,180
PetMed Express, Inc. (c)		29,500		466,985
Pier 1 Imports, Inc.		140,400		1,776,060
Pool Corp.		68,077		4,417,517
Rent-A-Center, Inc.		81,705		2,418,468
Restoration Hardware Holdings, Inc. *		47,841		4,122,459
Sears Hometown & Outlet Stores, Inc. *		17,000		117,810
Select Comfort Corp. *		83,700		2,579,634
Shoe Carnival, Inc.		24,850		648,834
Shutterfly, Inc. *		59,600		2,667,696
Sonic Automotive, Inc., Class A		65,652		1,532,974
Sportsman’s Warehouse Holdings, Inc. *		12,000		115,560
Stage Stores, Inc.		46,827		904,229
Stein Mart, Inc.		44,300		524,069
Systemax, Inc. *		14,500		151,525
The Bon-Ton Stores, Inc. (c)		38,600		276,762
The Buckle, Inc. (c)		41,664		1,866,547
The Cato Corp., Class A		42,404		1,668,173
The Children’s Place, Inc.		34,513		2,093,559
The Container Store Group, Inc. *(c)		25,200		460,152
The Finish Line, Inc., Class A		71,619		1,756,814
The Men’s Wearhouse, Inc.		74,900		4,238,591
The Pep Boys - Manny, Moe & Jack *		75,800		694,328
Tile Shop Holdings, Inc. *(c)		41,100		533,067
Tilly’s, Inc., Class A *		12,600		168,084
Travelport Worldwide Ltd. (c)		50,000		791,500
Tuesday Morning Corp. *		65,800		1,040,956
Vitamin Shoppe, Inc. *		45,400		1,901,352
VOXX International Corp. *		31,300		298,289
Wayfair, Inc., Class A *(c)		17,200		552,464
West Marine, Inc. *		24,500		246,225
Weyco Group, Inc.		9,100		259,350
Winmark Corp.		3,000		270,030

See financial notes 31

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Zumiez, Inc. *		30,100		954,471
				109,353,667
Semiconductors & Semiconductor Equipment 3.8%
Advanced Energy Industries, Inc. *		59,437		1,453,829
Alpha & Omega Semiconductor Ltd. *		28,000		229,320
Ambarella, Inc. *(c)		44,100		3,225,915
Amkor Technology, Inc. *		125,218		880,283
Applied Micro Circuits Corp. *		114,365		614,140
Audience, Inc. *(c)		21,900		104,244
Axcelis Technologies, Inc. *		142,100		358,092
Brooks Automation, Inc.		95,831		1,031,142
Cabot Microelectronics Corp. *		35,700		1,688,610
Cascade Microtech, Inc. *		18,700		247,962
Cavium, Inc. *		79,800		5,170,242
CEVA, Inc. *		32,336		669,355
Cirrus Logic, Inc. *		95,900		3,239,502
Cohu, Inc.		46,700		488,949
Cypress Semiconductor Corp. *		498,453		6,639,394
Diodes, Inc. *		54,281		1,450,388
DSP Group, Inc. *		31,400		357,332
Entegris, Inc. *		210,800		2,805,748
Entropic Communications, Inc. *		143,000		431,860
Exar Corp. *		58,500		577,395
Fairchild Semiconductor International, Inc. *		183,300		3,329,645
FormFactor, Inc. *		76,873		612,678
Inphi Corp. *		43,700		937,365
Integrated Device Technology, Inc. *		196,300		3,570,697
Integrated Silicon Solution, Inc.		46,000		853,300
Intersil Corp., Class A		190,700		2,545,845
IXYS Corp.		32,400		366,444
Kopin Corp. *		100,300		332,996
Lattice Semiconductor Corp. *		170,200		1,009,286
M/A-COM Technology Solutions Holdings, Inc. *		24,360		742,249
MaxLinear, Inc., Class A *		41,800		356,554
Micrel, Inc.		67,505		918,068
Microsemi Corp. *		144,471		4,819,553
MKS Instruments, Inc.		81,137		2,824,379
Monolithic Power Systems, Inc.		58,400		3,026,872
Nanometrics, Inc. *		40,600		627,676
NVE Corp.		6,500		441,090
OmniVision Technologies, Inc. *		82,373		2,297,795
PDF Solutions, Inc. *		44,800		809,536
Pericom Semiconductor Corp.		43,900		549,628
Photronics, Inc. *		116,000		1,017,320
PMC-Sierra, Inc. *		269,300		2,270,199
Power Integrations, Inc.		45,362		2,244,965
Qorvo, Inc. *		216,428		14,264,769
QuickLogic Corp. *		80,900		142,384
Rambus, Inc. *		167,900		2,323,736
Rubicon Technology, Inc. *(c)		32,500		124,800
Rudolph Technologies, Inc. *		46,700		599,161
Semtech Corp. *		100,229		2,334,333
Silicon Laboratories, Inc. *		63,800		3,296,546
Synaptics, Inc. *		53,700		4,549,464
Tessera Technologies, Inc.		80,059		2,890,930
Ultra Clean Holdings, Inc. *		43,300		260,233
Ultratech, Inc. *		47,700		952,092
Veeco Instruments, Inc. *		64,839		1,913,399
Xcerra Corp. *		84,400		829,652
				102,649,341
Software & Services 9.4%
A10 Networks, Inc. *(c)		18,700		85,085
ACI Worldwide, Inc. *		178,145		4,102,679
Actua Corp. *		69,600		1,007,112
Acxiom Corp. *		117,600		2,053,296
Advent Software, Inc.		79,028		3,430,606
Amber Road, Inc. *		13,100		114,756
American Software, Inc., Class A		45,000		436,950
Angie’s List, Inc. *(c)		60,200		353,374
Aspen Technology, Inc. *		139,457		6,190,496
AVG Technologies N.V. *		51,100		1,222,312
Bankrate, Inc. *		98,300		1,218,920
Barracuda Networks, Inc. *		11,600		470,148
Bazaarvoice, Inc. *		68,500		368,530
Benefitfocus, Inc. *(c)		7,400		255,670
Blackbaud, Inc.		68,569		3,464,792
Blackhawk Network Holdings, Inc. *		80,202		2,949,028
Blucora, Inc. *		63,100		862,577
Borderfree, Inc. *		8,800		55,616
Bottomline Technologies de, Inc. *		56,700		1,517,292
Box, Inc., Class A *(c)		20,500		350,755
Brightcove, Inc. *		49,900		345,308
BroadSoft, Inc. *		42,200		1,335,208
CACI International, Inc., Class A *		35,158		3,102,342
Callidus Software, Inc. *		86,000		1,062,100
Carbonite, Inc. *		26,000		266,240
Cardtronics, Inc. *		69,100		2,607,143
Care.com, Inc. *(c)		9,800		62,916
Cass Information Systems, Inc.		17,640		922,043
ChannelAdvisor Corp. *		30,400		310,992
Ciber, Inc. *		120,800		426,424
Cimpress N.V. *		50,200		4,213,788
CommVault Systems, Inc. *		71,600		3,275,700
Computer Task Group, Inc.		20,200		166,246
comScore, Inc. *		50,800		2,659,888
Comverse, Inc. *		32,070		785,715
Constant Contact, Inc. *		46,785		1,630,457
Convergys Corp.		148,900		3,377,052
Cornerstone OnDemand, Inc. *		82,700		2,367,701
Coupons.com, Inc. *(c)		17,700		221,781
Covisint Corp. *		58,312		114,292
CSG Systems International, Inc.		51,100		1,488,032
Cvent, Inc. *		26,300		706,944
Cyan, Inc. *(c)		39,400		146,962
Datalink Corp. *		27,300		315,588
Dealertrack Technologies, Inc. *		81,064		3,186,626
Demand Media, Inc. *		14,550		93,266
Demandware, Inc. *		44,100		2,716,560
DHI Group, Inc. *		53,000		402,800
Digimarc Corp.		10,300		241,020
EarthLink Holdings Corp.		147,381		697,112
Ebix, Inc. (c)		44,300		1,208,947
Ellie Mae, Inc. *		41,700		2,293,500

32 See financial notes

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Endurance International Group Holdings, Inc. *(c)		44,200		810,628
EnerNOC, Inc. *		42,000		464,100
Envestnet, Inc. *		50,000		2,563,000
EPAM Systems, Inc. *		55,500		3,591,405
Epiq Systems, Inc.		48,100		861,471
ePlus, Inc. *		9,200		763,232
Euronet Worldwide, Inc. *		79,336		4,639,569
EVERTEC, Inc.		96,400		1,998,372
Everyday Health, Inc. *		11,100		136,086
ExlService Holdings, Inc. *		46,900		1,614,767
Fair Isaac Corp.		48,100		4,254,926
Five9, Inc. *		15,000		81,450
Fleetmatics Group plc *		54,800		2,497,784
Forrester Research, Inc.		16,017		557,231
Gigamon, Inc. *		35,500		1,044,765
Global Cash Access Holdings, Inc. *		103,300		764,420
Global Sources Ltd. *		25,900		143,486
Globant S.A. *		14,600		306,746
Glu Mobile, Inc. *		131,900		891,644
Gogo, Inc. *(c)		82,000		1,733,480
GrubHub, Inc. *		13,100		539,327
GTT Communications, Inc. *		20,700		377,982
Guidance Software, Inc. *		31,700		185,128
Guidewire Software, Inc. *		103,927		5,191,154
Heartland Payment Systems, Inc.		53,800		2,738,420
Higher One Holdings, Inc. *		43,800		123,078
Hortonworks, Inc. *(c)		12,500		252,125
HubSpot, Inc. *(c)		8,900		344,519
IGATE Corp. *		58,356		2,775,411
Imperva, Inc. *		39,742		1,813,030
Infoblox, Inc. *		86,300		2,033,228
Information Services Group, Inc.		47,900		188,247
Interactive Intelligence Group, Inc. *		23,473		1,032,343
Internap Corp. *		96,000		902,400
Intralinks Holdings, Inc. *		61,600		603,680
j2 Global, Inc.		71,228		4,941,086
Jive Software, Inc. *		82,300		442,774
Kofax, Ltd. *		108,900		1,201,167
Limelight Networks, Inc. *		90,900		336,330
Lionbridge Technologies, Inc. *		99,900		554,445
Liquidity Services, Inc. *		35,400		331,344
LivePerson, Inc. *		78,700		739,780
LogMeIn, Inc. *		35,600		2,284,808
Luxoft Holding, Inc. *		11,500		596,045
Manhattan Associates, Inc. *		112,888		5,933,393
ManTech International Corp., Class A		34,500		1,008,435
Marchex, Inc., Class B		48,200		204,850
Marin Software, Inc. *		38,600		233,144
Marketo, Inc. *		37,600		1,069,720
MAXIMUS, Inc.		102,237		6,544,190
Mentor Graphics Corp.		149,167		3,569,566
MicroStrategy, Inc., Class A *		13,462		2,451,699
Millennial Media, Inc. *(c)		110,600		171,430
MobileIron, Inc. *(c)		26,100		157,122
Model N, Inc. *		28,300		332,525
ModusLink Global Solutions, Inc. *		58,700		205,450
MoneyGram International, Inc. *		42,800		331,700
Monotype Imaging Holdings, Inc.		58,600		1,899,226
Monster Worldwide, Inc. *		133,500		786,315
NetScout Systems, Inc. *		55,200		2,268,720
NeuStar, Inc., Class A *(c)		83,179		2,495,370
New Relic, Inc. *(c)		10,300		334,647
NIC, Inc.		96,800		1,645,600
OPOWER, Inc. *(c)		11,400		114,000
Park City Group, Inc. *(c)		14,000		151,900
Paycom Software, Inc. *		9,600		303,456
Pegasystems, Inc.		53,200		1,145,928
Perficient, Inc. *		49,897		1,029,375
PRGX Global, Inc. *		41,500		175,960
Progress Software Corp. *		74,620		1,969,968
Proofpoint, Inc. *		59,700		3,222,606
PROS Holdings, Inc. *		34,000		755,820
Q2 Holdings, Inc. *		14,500		295,075
QAD, Inc., Class A		14,100		343,758
Qlik Technologies, Inc. *		137,121		4,770,440
Qualys, Inc. *		29,500		1,460,840
QuinStreet, Inc. *		44,900		243,807
Rally Software Development Corp. *		36,500		527,790
RealNetworks, Inc. *		52,657		345,957
RealPage, Inc. *		76,600		1,519,744
Reis, Inc.		11,900		270,487
RetailMeNot, Inc. *		45,200		830,776
Rightside Group Ltd. *		14,550		118,437
Rocket Fuel, Inc. *(c)		26,900		215,469
Rosetta Stone, Inc. *		31,100		259,996
Sapiens International Corp. N.V. *(c)		43,366		378,585
Science Applications International Corp.		60,500		3,031,050
SciQuest, Inc. *		48,200		740,834
Seachange International, Inc. *		46,700		313,357
ServiceSource International, Inc. *		105,500		376,635
Shutterstock, Inc. *		24,200		1,633,258
Silver Spring Networks, Inc. *		51,400		499,608
SPS Commerce, Inc. *		25,500		1,664,130
SS&C Technologies Holdings, Inc.		102,700		6,179,459
Stamps.com, Inc. *		21,700		1,343,013
Sykes Enterprises, Inc. *		60,293		1,509,134
Synchronoss Technologies, Inc. *		51,800		2,376,584
Syntel, Inc. *		45,800		2,061,916
Take-Two Interactive Software, Inc. *		125,312		2,969,894
Tangoe, Inc. *		56,800		777,024
TechTarget, Inc. *		31,700		342,994
TeleCommunication Systems, Inc., Class A *		67,800		211,536
Telenav, Inc. *		40,000		334,400
TeleTech Holdings, Inc.		27,200		705,568
Textura, Corp. *(c)		27,400		717,058
The Hackett Group, Inc.		40,800		391,680
The Rubicon Project, Inc. *		11,600		202,652
The Ultimate Software Group, Inc. *		42,482		7,061,358
TiVo, Inc. *		150,203		1,659,743
Travelzoo, Inc. *		9,800		128,772
Tremor Video, Inc. *(c)		59,800		149,500

See financial notes 33

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
TrueCar, Inc. *(c)		11,400		175,788
TubeMogul, Inc. *(c)		3,525		50,760
Tyler Technologies, Inc. *		49,952		6,091,646
Unisys Corp. *		77,550		1,688,264
Unwired Planet, Inc. *		122,695		72,427
Varonis Systems, Inc. *		7,900		227,125
VASCO Data Security International, Inc. *(c)		45,900		1,166,778
Verint Systems, Inc. *		92,572		5,686,698
VirnetX Holding Corp. *(c)		65,700		424,422
Virtusa Corp. *		38,100		1,516,380
Vringo, Inc. *		95,600		59,272
Web.com Group, Inc. *		83,100		1,526,547
WebMD Health Corp. *		56,800		2,507,720
WEX, Inc. *		58,476		6,590,830
Wix.com Ltd. *		20,300		395,241
Workiva, Inc. *(c)		14,300		206,921
XO Group, Inc. *		39,800		647,148
Xoom Corp. *(c)		45,400		802,218
Yodlee, Inc. *		6,300		80,262
YuMe, Inc. *(c)		29,400		150,822
Zendesk, Inc. *		16,700		385,102
Zix Corp. *		88,900		378,714
				253,812,618
Technology Hardware & Equipment 4.6%
ADTRAN, Inc.		82,800		1,375,308
Aerohive Networks, Inc. *		12,000		73,080
Agilysys, Inc. *		24,000		225,840
Alliance Fiber Optic Products, Inc.		16,400		301,104
Anixter International, Inc. *		42,024		2,966,894
Applied Optoelectronics, Inc. *		21,700		309,876
Aruba Networks, Inc. *		164,400		4,045,884
Badger Meter, Inc.		21,940		1,365,107
Bel Fuse, Inc., Class B		14,100		289,473
Belden, Inc.		65,916		5,533,648
Benchmark Electronics, Inc. *		81,294		1,912,848
Black Box Corp.		24,092		479,431
CalAmp Corp. *		53,500		1,054,485
Calix, Inc. *		58,800		434,532
Checkpoint Systems, Inc.		61,644		638,632
Ciena Corp. *		154,800		3,297,240
Clearfield, Inc. *(c)		16,700		226,285
Cognex Corp. *		131,403		5,898,681
Coherent, Inc. *		36,651		2,199,060
Comtech Telecommunications Corp.		25,300		731,170
Control4 Corp. *(c)		16,800		196,896
Cray, Inc. *		59,800		1,679,782
CTS Corp.		52,200		936,468
CUI Global, Inc. *		30,300		166,953
Daktronics, Inc.		59,300		636,289
Digi International, Inc. *		33,900		342,390
Dot Hill Systems Corp. *		88,000		552,640
DTS, Inc. *		24,942		894,171
Eastman Kodak Co. *		25,900		501,683
Electro Rent Corp.		25,200		273,168
Electro Scientific Industries, Inc.		39,800		226,860
Electronics for Imaging, Inc. *		68,609		2,863,053
Emulex Corp. *		111,137		891,319
Extreme Networks, Inc. *		135,200		340,704
Fabrinet *		51,500		932,665
FARO Technologies, Inc. *		25,200		1,003,716
FEI Co.		64,400		4,859,624
Finisar Corp. *		157,500		3,201,975
GSI Group, Inc. *		48,200		640,096
Harmonic, Inc. *		133,500		935,835
II-VI, Inc. *		76,900		1,368,051
Immersion Corp. *		46,379		502,285
Infinera Corp. *		183,100		3,442,280
Insight Enterprises, Inc. *		60,100		1,720,062
InterDigital, Inc.		54,600		2,987,712
Intevac, Inc. *		35,100		169,884
InvenSense, Inc. *(c)		113,500		1,693,420
Itron, Inc. *		61,600		2,208,976
Ixia *		90,364		1,082,561
Kemet Corp. *		59,100		255,312
Kimball Electronics, Inc. *		38,700		494,973
KVH Industries, Inc. *		30,800		415,492
Littelfuse, Inc.		33,200		3,253,268
Maxwell Technologies, Inc. *(c)		43,400		243,040
Mercury Systems, Inc. *		54,201		748,516
Mesa Laboratories, Inc.		3,600		305,604
Methode Electronics, Inc.		56,300		2,390,498
Mitel Networks Corp. *		26,930		250,180
MTS Systems Corp.		21,775		1,536,879
Multi-Fineline Electronix, Inc. *		12,100		282,898
NETGEAR, Inc. *		54,000		1,634,580
Newport Corp. *		57,700		1,100,339
Nimble Storage, Inc. *(c)		13,600		332,656
Numerex Corp., Class A *		25,600		281,344
Oclaro, Inc. *(c)		137,300		263,616
OSI Systems, Inc. *		29,900		2,009,579
Park Electrochemical Corp.		32,946		715,587
ParkerVision, Inc. *(c)		144,400		98,192
PC Connection, Inc.		17,700		429,933
Plantronics, Inc.		64,993		3,462,177
Plexus Corp. *		52,362		2,254,184
Polycom, Inc. *		202,700		2,645,235
Procera Networks, Inc. *		28,000		322,280
QLogic Corp. *		139,300		2,047,710
Quantum Corp. *		324,083		651,407
RealD, Inc. *		60,400		741,712
Rofin-Sinar Technologies, Inc. *		40,036		947,252
Rogers Corp. *		27,867		2,026,209
Ruckus Wireless, Inc. *		95,100		1,110,768
Sanmina Corp. *		120,600		2,451,798
ScanSource, Inc. *		44,805		1,785,479
ShoreTel, Inc. *		105,257		732,589
Silicon Graphics International Corp. *		53,400		433,074
Sonus Networks, Inc. *		72,111		571,119
Speed Commerce, Inc. *		57,100		17,227
Super Micro Computer, Inc. *		50,600		1,455,762
SYNNEX Corp.		41,800		3,197,700
TESSCO Technologies, Inc.		7,400		186,998
TTM Technologies, Inc. *		86,250		806,437
Ubiquiti Networks, Inc.		48,200		1,377,074
Universal Display Corp. *		60,952		2,686,155
ViaSat, Inc. *		63,319		3,806,738
Viasystems Group, Inc. *		7,000		124,460
Violin Memory, Inc. *(c)		117,600		401,016

34 See financial notes

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Vishay Precision Group, Inc. *		16,500		235,455
				124,130,597
Telecommunication Services 0.8%
8x8, Inc. *		127,000		1,108,710
Atlantic Tele-Network, Inc.		15,200		1,003,504
Boingo Wireless, Inc. *		37,100		306,446
Cincinnati Bell, Inc. *		303,745		1,041,845
Cogent Communications Holdings, Inc.		71,600		2,505,284
Consolidated Communications Holdings, Inc.		76,274		1,607,093
FairPoint Communications, Inc. *		28,900		569,908
General Communication, Inc., Class A *		50,300		797,758
Globalstar, Inc. *(c)		402,800		1,043,252
Hawaiian Telcom Holdco, Inc. *		16,213		427,050
IDT Corp., Class B		31,300		533,039
inContact, Inc. *		101,000		1,045,350
Inteliquent, Inc.		54,500		1,036,045
Intelsat S.A. *		40,100		504,859
Iridium Communications, Inc. *		116,700		1,186,839
Lumos Networks Corp.		25,400		359,156
magicJack VocalTec Ltd. *(c)		26,400		171,600
NTELOS Holdings Corp.		26,050		151,351
ORBCOMM, Inc. *		82,700		497,854
Premiere Global Services, Inc. *		70,000		714,700
RingCentral, Inc., Class A *		41,100		708,153
Shenandoah Telecommunications Co.		34,800		1,199,208
Spok Holdings, Inc.		36,600		688,995
Vonage Holdings Corp. *		260,200		1,204,726
				20,412,725
Transportation 1.9%
Air Transport Services Group, Inc. *		72,100		671,972
Allegiant Travel Co.		20,900		3,213,584
ArcBest Corp.		40,572		1,448,420
Atlas Air Worldwide Holdings, Inc. *		37,400		1,822,876
Baltic Trading Ltd. (c)		72,200		102,524
Celadon Group, Inc.		32,600		842,384
Echo Global Logistics, Inc. *		34,500		997,050
Forward Air Corp.		45,682		2,301,002
Golden Ocean Group Ltd. (c)		112,200		558,756
Hawaiian Holdings, Inc. *		66,000		1,523,280
Heartland Express, Inc.		79,800		1,669,416
Hub Group, Inc., Class A *		57,034		2,275,657
International Shipholding Corp.		7,300		80,154
JetBlue Airways Corp. *		395,414		8,117,849
Knight Transportation, Inc.		88,400		2,554,760
Marten Transport Ltd.		42,465		945,271
Matson, Inc.		67,600		2,737,800
Navios Maritime Holdings, Inc.		116,400		441,156
P.A.M. Transportation Services, Inc. *		4,000		234,360
Park-Ohio Holdings Corp.		13,600		630,088
Patriot Transportation Holding, Inc. *		2,899		74,823
Quality Distribution, Inc. *		40,200		398,784
Republic Airways Holdings, Inc. *		74,100		906,984
Roadrunner Transportation Systems, Inc. *		40,900		1,000,823
Safe Bulkers, Inc.		57,100		204,418
Saia, Inc. *		37,900		1,544,425
Scorpio Bulkers, Inc. *(c)		197,400		475,734
SkyWest, Inc.		73,612		1,004,804
Swift Transportation Co. *		130,000		3,146,000
Ultrapetrol Bahamas Ltd. *		33,800		41,912
Universal Truckload Services, Inc.		11,747		249,506
USA Truck, Inc. *		9,200		225,952
UTi Worldwide, Inc. *		137,300		1,239,819
Virgin America, Inc. *		21,400		615,036
Werner Enterprises, Inc.		70,449		1,892,965
Wesco Aircraft Holdings, Inc. *		76,900		1,205,792
XPO Logistics, Inc. *		80,069		3,883,347
YRC Worldwide, Inc. *		47,200		736,320
				52,015,803
Utilities 3.5%
Abengoa Yield plc		46,100		1,563,251
ALLETE, Inc.		68,254		3,433,176
American States Water Co.		55,800		2,142,162
Artesian Resources Corp., Class A		10,500		226,170
Atlantic Power Corp.		217,000		705,250
Avista Corp.		90,630		2,956,351
Black Hills Corp.		65,398		3,223,467
California Water Service Group		71,574		1,708,471
Chesapeake Utilities Corp.		20,700		989,046
Cleco Corp.		92,900		5,049,115
Connecticut Water Service, Inc.		15,000		540,000
Dynegy, Inc. *		183,800		6,115,026
El Paso Electric Co.		60,303		2,243,875
IDACORP, Inc.		76,043		4,587,674
MGE Energy, Inc.		50,940		2,112,991
Middlesex Water Co.		25,485		580,294
New Jersey Resources Corp.		126,700		3,865,617
Northwest Natural Gas Co.		39,895		1,863,097
NorthWestern Corp.		70,069		3,649,894
NRG Yield, Inc., Class A		36,200		1,781,040
ONE Gas, Inc.		76,300		3,202,311
Ormat Technologies, Inc.		51,273		1,876,079
Otter Tail Corp.		59,509		1,779,914
Pattern Energy Group, Inc.		69,900		2,025,702
Piedmont Natural Gas Co., Inc.		117,906		4,414,401
PNM Resources, Inc.		118,200		3,283,596
Portland General Electric Co.		118,846		4,178,625
SJW Corp.		24,600		719,550
South Jersey Industries, Inc.		50,660		2,672,315
Southwest Gas Corp.		68,596		3,772,780
Spark Energy, Inc., Class A		6,900		86,250
TerraForm Power, Inc., Class A *		41,012		1,621,204
The Empire District Electric Co.		62,100		1,463,697
The Laclede Group, Inc.		67,821		3,521,945
The York Water Co.		26,600		669,256
UIL Holdings Corp.		84,010		4,190,419
Unitil Corp.		22,100		755,820
Vivint Solar, Inc. *		27,000		381,240

See financial notes 35

 Schwab Small-Cap Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
WGL Holdings, Inc.		80,824		4,446,128
				94,397,199
Total Common Stock
(Cost $1,852,070,505)				2,674,435,521
Rights 0.0% of net assets
Automobiles & Components 0.0%
Contra Furiex Pharmaceuticals CVR *(a)(b)		11,000		107,470
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Omthera Pharmaceutical CVR *(a)(b)		8,400		—
Telecommunication Services 0.0%
Contra Leap Wireless CVR *(a)(b)		84,700		213,444
Total Rights
(Cost $320,914)				320,914
Warrants 0.0% of net assets
Energy 0.0%
Magnum Hunter Resources Corp. *(a)(b)		24,500		—
Total Warrants
(Cost $—)				—
Other Investment Company 4.3% of net assets
Securities Lending Collateral 4.3%
Wells Fargo Advantage Government Money Market Fund, Institutional Class 0.01% (d)		115,143,210		115,143,210
Total Other Investment Company
(Cost $115,143,210)				115,143,210
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investment 0.7% of net assets
Time Deposit 0.7%
JPMorgan Chase Bank
0.03%, 05/01/15		20,490,679		20,490,679
Total Short-Term Investment
(Cost $20,490,679)				20,490,679
End of Investments.

At 04/30/15 tax basis cost of the fund’s investments was $1,996,452,668 and the unrealized appreciation and depreciation were $987,306,362 and ($173,368,706), respectively, with a net unrealized appreciation of $813,937,656.

*	Non-income producing security.
(a)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(b)	Illiquid security. At the period end, the value of these amounted to $320,914 or 0.0% of net assets.
(c)	All or a portion of this security is on loan. Securities on loan were valued at $109,679,654.
(d)	The rate shown is the 7-day yield.

CVR —	Contingent Value Rights
REIT —	Real Estate Investment Trust

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Depreciation
	Contracts		($)		($)
Futures Contracts
Russell 2000 Index, mini, Long, expires 06/19/15		150		18,246,000		(697,425	)

36 See financial notes

 Schwab Total Stock Market Index Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.0%	Common Stock		2,747,125,132		4,442,966,253
	0	.0%	Rights		32,983		32,760
	0	.0%	Warrants		—		—
	0	.7%	Other Investment Company		32,064,921		32,064,921
	0	.8%	Short-Term Investment		33,950,307		33,950,307
	100	.5%	Total Investments		2,813,173,343		4,509,014,241
	(0	.5%)	Other Assets and Liabilities, Net				(21,097,103	)
	100	.0%	Net Assets				4,487,917,138

	Number		Value
Security	of Shares		($)
Common Stock 99.0% of net assets
Automobiles & Components 1.2%
American Axle & Manufacturing Holdings, Inc. *		13,400		334,062
Autoliv, Inc.		15,800		1,875,776
BorgWarner, Inc.		44,800		2,652,160
Cooper Tire & Rubber Co.		8,900		378,161
Cooper-Standard Holding, Inc. *		2,500		152,550
Dana Holding Corp.		35,200		759,264
Delphi Automotive plc		55,685		4,621,855
Dorman Products, Inc. *		5,000		234,150
Drew Industries, Inc.		5,400		306,018
Federal-Mogul Holdings Corp. *		22,200		286,380
Ford Motor Co.		775,940		12,259,852
General Motors Co.		258,785		9,073,002
Gentex Corp.		59,600		1,034,060
Gentherm, Inc. *		5,307		279,838
Harley-Davidson, Inc.		45,993		2,585,267
Johnson Controls, Inc.		123,800		6,237,044
Lear Corp.		14,000		1,554,420
Modine Manufacturing Co. *		12,100		148,709
Remy International, Inc.		2,946		65,548
Standard Motor Products, Inc.		7,500		283,500
Stoneridge, Inc. *		13,100		157,724
Strattec Security Corp.		1,500		112,605
Tenneco, Inc. *		10,080		589,176
Tesla Motors, Inc. *(c)		18,170		4,107,328
The Goodyear Tire & Rubber Co.		60,637		1,719,969
Thor Industries, Inc.		7,500		451,275
Tower International, Inc. *		5,564		143,885
TRW Automotive Holdings Corp. *		22,500		2,363,850
Visteon Corp. *		8,000		811,200
Winnebago Industries, Inc.		7,400		153,254
				55,731,882
Banks 5.8%
1st Source Corp.		5,528		172,031
Ameris Bancorp		6,348		158,637
Arrow Financial Corp.		3,457		90,089
Associated Banc-Corp.		25,000		470,250
Astoria Financial Corp.		19,300		254,181
BancFirst Corp.		2,300		132,756
BancorpSouth, Inc.		16,112		390,072
Bank Mutual Corp.		18,268		131,347
Bank of America Corp.		2,035,501		32,425,531
Bank of Hawaii Corp.		6,500		392,535
Bank of the Ozarks, Inc.		11,200		434,112
BankUnited, Inc.		19,696		647,211
Banner Corp.		5,571		251,921
BB&T Corp.		149,358		5,718,918
BBCN Bancorp, Inc.		19,100		271,029
Beneficial Bancorp, Inc. *		9,899		114,828
Berkshire Hills Bancorp, Inc.		8,000		224,080
BNC Bancorp		11,012		200,969
BofI Holding, Inc. *		2,100		192,801
BOK Financial Corp.		3,740		243,811
Boston Private Financial Holdings, Inc.		20,729		272,586
Brookline Bancorp, Inc.		11,705		126,063
Bryn Mawr Bank Corp.		3,400		102,306
Camden National Corp.		2,500		95,800
Capital Bank Financial Corp., Class A *		10,300		279,336
Capital City Bank Group, Inc.		6,875		96,731
Capitol Federal Financial, Inc.		21,963		263,556
Cardinal Financial Corp.		3,700		76,331
Cathay General Bancorp		16,006		457,451
CenterState Banks, Inc.		17,590		213,894
Central Pacific Financial Corp.		10,269		235,160
Century Bancorp, Inc., Class A		800		30,904
Chemical Financial Corp.		8,683		268,305
CIT Group, Inc.		43,200		1,945,296
Citigroup, Inc.		586,989		31,298,253
City Holding Co.		4,800		220,656
City National Corp.		10,300		959,960
Columbia Banking System, Inc.		9,951		295,545
Comerica, Inc.		39,159		1,856,528
Commerce Bancshares, Inc.		13,579		579,959
Community Bank System, Inc.		10,700		373,965
Community Trust Bancorp, Inc.		2,735		87,739
Cullen/Frost Bankers, Inc.		9,100		663,754
CVB Financial Corp.		19,411		303,782
Dime Community Bancshares, Inc.		6,875		109,450
Eagle Bancorp, Inc. *		5,760		212,314
East West Bancorp, Inc.		24,100		978,219
Essent Group Ltd. *		14,900		371,755
EverBank Financial Corp.		15,400		285,978
F.N.B. Corp.		31,061		412,179
Fifth Third Bancorp		166,314		3,326,280
First BanCorp (Puerto Rico) *		56,579		340,040
First Busey Corp.		20,200		126,048

See financial notes 37

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
First Citizens BancShares, Inc., Class A		1,900		456,646
First Commonwealth Financial Corp.		24,904		224,634
First Financial Bancorp		10,339		178,451
First Financial Bankshares, Inc. (c)		8,200		237,472
First Financial Corp.		2,600		88,270
First Horizon National Corp.		45,216		644,328
First Interstate BancSystem, Inc., Class A		8,900		240,834
First Merchants Corp.		9,041		204,055
First Midwest Bancorp, Inc.		15,825		270,608
First Niagara Financial Group, Inc.		58,465		531,739
First Republic Bank		28,724		1,674,322
First United Corp. *		2,200		18,920
FirstMerit Corp.		27,289		528,588
Flagstar Bancorp, Inc. *		8,060		138,471
Flushing Financial Corp.		6,800		130,288
Fulton Financial Corp.		28,262		343,666
Glacier Bancorp, Inc.		10,497		276,491
Great Southern Bancorp, Inc.		3,400		134,028
Hancock Holding Co.		12,344		359,334
Hanmi Financial Corp.		7,000		148,960
Heartland Financial USA, Inc.		2,500		86,025
Heritage Financial Corp.		6,135		103,682
Hilltop Holdings, Inc. *		14,975		301,147
Home BancShares, Inc.		11,500		378,120
Hudson City Bancorp, Inc.		78,531		730,338
Huntington Bancshares, Inc.		177,099		1,923,295
IBERIABANK Corp.		6,075		378,533
Independent Bank Corp., Massachusetts		5,700		237,804
Independent Bank Corp., Michigan		431		5,706
International Bancshares Corp.		13,484		350,314
Investors Bancorp, Inc.		58,997		698,524
JPMorgan Chase & Co.		718,963		45,481,599
Kearny Financial Corp. *		9,000		120,060
KeyCorp		192,190		2,777,145
Lakeland Financial Corp.		3,700		144,485
LegacyTexas Financial Group, Inc.		8,700		221,415
LendingTree, Inc. *		4,444		244,553
M&T Bank Corp.		26,666		3,191,120
MainSource Financial Group, Inc.		5,535		106,549
MB Financial, Inc.		13,857		417,511
Merchants Bancshares, Inc.		3,650		107,529
MGIC Investment Corp. *		62,600		652,292
MutualFirst Financial, Inc.		2,000		43,100
National Bank Holdings Corp., Class A		12,800		243,200
National Penn Bancshares, Inc.		32,675		339,820
Nationstar Mortgage Holdings, Inc. *		10,200		256,020
NBT Bancorp, Inc.		11,500		277,725
New York Community Bancorp, Inc.		74,285		1,276,959
Northfield Bancorp, Inc.		15,765		227,489
Northrim BanCorp, Inc.		4,281		106,683
Northwest Bancshares, Inc.		19,350		238,199
OceanFirst Financial Corp.		7,150		119,977
Ocwen Financial Corp. *(c)		18,620		158,084
OFG Bancorp		8,163		115,017
Old National Bancorp		16,800		229,488
Oritani Financial Corp.		6,000		89,400
PacWest Bancorp		15,333		691,518
Park National Corp.		4,845		400,003
People’s United Financial, Inc.		79,087		1,195,005
Peoples Financial Corp.		3,000		28,170
Pinnacle Financial Partners, Inc.		6,475		308,534
Popular, Inc. *		19,720		639,520
Premier Financial Bancorp, Inc.		2,645		39,384
PrivateBancorp, Inc.		13,000		481,910
Prosperity Bancshares, Inc.		11,300		602,742
Provident Financial Holdings, Inc.		4,350		71,993
Provident Financial Services, Inc.		14,017		252,306
Radian Group, Inc.		34,300		612,598
Regions Financial Corp.		308,873		3,036,222
Renasant Corp.		8,910		264,716
Republic Bancorp, Inc., Class A		6,521		155,069
S&T Bancorp, Inc.		4,400		118,360
Sandy Spring Bancorp, Inc.		5,900		153,754
Seacoast Banking Corp of Florida *		3,936		54,947
Shore Bancshares, Inc. *		1,250		11,513
Signature Bank *		11,500		1,542,035
Simmons First National Corp., Class A		4,000		175,000
South State Corp.		5,584		378,148
Southside Bancshares, Inc.		4,978		136,000
Southwest Bancorp, Inc.		7,800		134,394
State Bank Financial Corp.		6,200		124,062
Sterling Bancorp		19,185		249,021
Stock Yards Bancorp, Inc.		3,670		127,716
Suffolk Bancorp		4,600		110,216
Sun Bancorp, Inc. *		3,863		73,127
SunTrust Banks, Inc.		106,857		4,434,565
Susquehanna Bancshares, Inc.		27,568		370,514
SVB Financial Group *		11,800		1,566,568
Synovus Financial Corp.		22,042		609,682
TCF Financial Corp.		32,100		502,686
Texas Capital Bancshares, Inc. *		7,800		410,748
TFS Financial Corp.		19,500		285,090
The First of Long Island Corp.		6,000		150,120
The PNC Financial Services Group, Inc.		102,842		9,433,697
Timberland Bancorp, Inc.		2,000		20,800
Tompkins Financial Corp.		4,024		209,852
Towne Bank		3,800		62,890
TriCo Bancshares		5,682		132,504
TrustCo Bank Corp.		20,657		137,782
Trustmark Corp.		14,762		351,336
U.S. Bancorp		350,537		15,027,521
UMB Financial Corp.		7,774		387,067
Umpqua Holdings Corp.		31,951		543,487
Union Bankshares Corp.		12,893		280,552
United Bankshares, Inc.		12,300		462,234
United Community Banks, Inc.		11,678		217,328
United Financial Bancorp, Inc.		14,699		187,412
Valley National Bancorp		30,542		288,011
Walker & Dunlop, Inc. *		9,700		185,658
Washington Federal, Inc.		14,942		322,747
Washington Trust Bancorp, Inc.		3,600		133,272
Webster Financial Corp.		15,963		571,954
Wells Fargo & Co.		906,413		49,943,356
WesBanco, Inc.		7,756		244,392

38 See financial notes

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Westamerica Bancorp		5,200		226,460
Western Alliance Bancorp *		16,600		513,272
Wilshire Bancorp, Inc.		9,900		104,445
Wintrust Financial Corp.		8,900		433,786
WSFS Financial Corp.		2,000		142,340
Zions Bancorp		35,725		1,012,268
				261,466,623
Capital Goods 7.6%
3M Co.		122,357		19,135,411
A.O. Smith Corp.		17,500		1,118,250
AAON, Inc.		10,279		246,388
AAR Corp.		8,400		254,016
Actuant Corp., Class A		10,280		244,870
Acuity Brands, Inc.		7,500		1,252,125
AECOM *		31,725		1,001,241
Aegion Corp. *		4,300		79,206
Aerojet Rocketdyne Holdings, Inc. *		11,600		228,056
Aerovironment, Inc. *		4,200		107,520
AGCO Corp.		15,462		796,448
Air Lease Corp.		17,400		672,162
Aircastle Ltd.		14,100		338,118
Alamo Group, Inc.		2,500		154,450
Albany International Corp., Class A		6,718		263,346
Allegion plc		17,433		1,066,028
Allison Transmission Holdings, Inc.		28,555		876,067
Altra Industrial Motion Corp.		4,300		113,391
American Railcar Industries, Inc.		4,500		238,680
American Science & Engineering, Inc.		2,000		74,840
American Superconductor Corp. *(c)		520		3,364
American Woodmark Corp. *		4,000		202,800
AMETEK, Inc.		50,659		2,655,545
Apogee Enterprises, Inc.		6,600		347,292
Applied Industrial Technologies, Inc.		6,525		272,549
Armstrong World Industries, Inc. *		8,495		465,016
Astec Industries, Inc.		5,700		239,856
Astronics Corp. *		2,550		171,640
AZZ, Inc.		5,700		264,423
B/E Aerospace, Inc.		22,900		1,369,191
Barnes Group, Inc.		11,200		449,120
Beacon Roofing Supply, Inc. *		6,600		196,152
Blount International, Inc. *		15,900		210,834
Breeze-Eastern Corp. *		500		5,100
Briggs & Stratton Corp.		11,400		222,870
Builders FirstSource, Inc. *		17,100		218,196
Carlisle Cos., Inc.		15,000		1,447,500
Caterpillar, Inc.		118,269		10,275,211
Chart Industries, Inc. *		4,400		178,420
Chicago Bridge & Iron Co., N.V. (c)		17,800		848,170
CIRCOR International, Inc.		3,750		204,900
CLARCOR, Inc.		14,800		962,000
Colfax Corp. *		16,400		813,276
Columbus McKinnon Corp.		4,300		109,048
Comfort Systems USA, Inc.		7,700		159,313
Crane Co.		8,000		488,880
Cubic Corp.		4,500		223,110
Cummins, Inc.		32,400		4,479,624
Curtiss-Wright Corp.		9,100		664,846
Danaher Corp.		118,374		9,692,463
Deere & Co.		68,454		6,196,456
DigitalGlobe, Inc. *		12,322		396,399
Donaldson Co., Inc.		22,100		825,877
Dover Corp.		29,661		2,245,931
Ducommun, Inc. *		3,200		97,280
DXP Enterprises, Inc. *		1,700		76,585
Dycom Industries, Inc. *		5,300		243,694
Dynamic Materials Corp.		6,800		91,052
Eaton Corp. plc		93,777		6,445,293
EMCOR Group, Inc.		12,700		566,801
Emerson Electric Co.		135,608		7,977,819
Encore Wire Corp.		4,600		207,046
EnerSys		7,500		509,250
Engility Holdings, Inc.		4,116		114,713
EnPro Industries, Inc.		4,900		313,649
ESCO Technologies, Inc.		3,900		143,130
Esterline Technologies Corp. *		5,900		656,611
Exelis, Inc.		34,900		855,748
Fastenal Co.		56,432		2,405,132
Federal Signal Corp.		12,800		201,216
Flowserve Corp.		27,700		1,621,281
Fluor Corp.		28,519		1,715,133
Fortune Brands Home & Security, Inc.		27,400		1,222,040
Franklin Electric Co., Inc.		9,700		350,752
FreightCar America, Inc.		2,500		65,225
FuelCell Energy, Inc. *(c)		29,400		36,162
Furmanite Corp. *		7,200		52,560
GATX Corp.		8,900		484,160
Generac Holdings, Inc. *		12,500		521,125
General Cable Corp.		6,700		109,277
General Dynamics Corp.		59,500		8,170,540
General Electric Co.		1,946,712		52,716,961
Gibraltar Industries, Inc. *		6,300		104,328
Graco, Inc.		10,812		774,355
GrafTech International Ltd. *		16,600		80,344
Granite Construction, Inc.		8,150		282,886
Great Lakes Dredge & Dock Corp. *		11,600		67,280
Griffon Corp.		15,100		253,831
H&E Equipment Services, Inc.		6,800		168,096
Hardinge, Inc.		4,800		51,648
Harsco Corp.		11,300		181,704
HD Supply Holdings, Inc. *		34,600		1,141,800
HEICO Corp.		15,175		847,372
Hexcel Corp.		16,400		822,460
Hillenbrand, Inc.		8,800		258,632
Honeywell International, Inc.		150,280		15,166,258
Hubbell, Inc., Class B		11,300		1,229,779
Huntington Ingalls Industries, Inc.		8,172		1,075,353
Hyster-Yale Materials Handling, Inc.		2,300		168,682
IDEX Corp.		19,025		1,427,065
Illinois Tool Works, Inc.		69,000		6,457,020
Ingersoll-Rand plc		51,700		3,403,928
Integrated Electrical Services, Inc. *		5,105		41,912
ITT Corp.		15,000		594,750
Jacobs Engineering Group, Inc. *		21,700		930,062
John Bean Technologies Corp.		4,983		192,294

See financial notes 39

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Joy Global, Inc.		17,550		748,332
Kadant, Inc.		3,001		152,931
Kaman Corp.		5,700		237,747
KBR, Inc.		24,000		419,280
Kennametal, Inc.		14,700		520,527
KLX, Inc. *		9,000		377,190
Kratos Defense & Security Solutions, Inc. *		10,180		55,685
L-3 Communications Holdings, Inc.		16,200		1,861,542
L.B. Foster Co., Class A		1,400		59,822
Lawson Products, Inc. *		5,500		128,975
Layne Christensen Co. *(c)		4,500		30,240
Lennox International, Inc.		7,471		791,627
Lincoln Electric Holdings, Inc.		13,600		909,296
Lindsay Corp. (c)		3,100		245,489
Lockheed Martin Corp.		52,035		9,709,731
Lydall, Inc. *		5,500		147,620
Magnetek, Inc. *		1,650		63,542
Masco Corp.		69,200		1,833,108
Masonite International Corp. *		4,000		264,800
MasTec, Inc. *		15,750		282,555
Meritor, Inc. *		22,600		296,512
Moog, Inc., Class A *		7,587		530,180
MRC Global, Inc. *		15,600		227,760
MSC Industrial Direct Co., Inc., Class A		8,000		568,480
Mueller Industries, Inc.		11,800		413,472
Mueller Water Products, Inc., Class A		23,139		216,581
MYR Group, Inc. *		8,500		249,220
National Presto Industries, Inc. (c)		2,900		181,482
Navistar International Corp. *		11,600		347,536
NCI Building Systems, Inc. *		14,480		224,150
NN, Inc.		1,800		45,288
Nordson Corp.		9,500		756,675
Nortek, Inc. *		3,200		270,784
Northrop Grumman Corp.		37,659		5,800,992
NOW, Inc. *(c)		18,205		435,099
Omega Flex, Inc.		700		20,853
Orbital ATK, Inc.		11,194		818,953
Oshkosh Corp.		14,300		769,912
Owens Corning		26,800		1,036,088
PACCAR, Inc.		67,022		4,379,888
Pall Corp.		18,500		1,800,420
Parker-Hannifin Corp.		28,900		3,449,504
Pentair plc		34,885		2,168,103
Polypore International, Inc. *		10,900		638,304
Powell Industries, Inc.		2,800		92,932
Precision Castparts Corp.		28,002		5,787,733
Preformed Line Products Co.		1,000		41,950
Primoris Services Corp.		6,900		132,687
Proto Labs, Inc. *		4,800		336,000
Quanex Building Products Corp.		6,125		118,212
Quanta Services, Inc. *		46,271		1,337,695
Raven Industries, Inc.		5,600		111,664
Raytheon Co.		58,277		6,060,808
RBC Bearings, Inc.		6,000		437,940
Regal Beloit Corp.		8,700		680,340
Rexnord Corp. *		29,900		792,051
Rockwell Automation, Inc.		28,431		3,371,917
Rockwell Collins, Inc.		24,200		2,355,386
Roper Technologies, Inc.		20,959		3,524,675
Rush Enterprises, Inc., Class A *		8,200		214,348
Sensata Technologies Holding N.V. *		34,800		1,921,308
Simpson Manufacturing Co., Inc.		6,200		203,236
Snap-on, Inc.		10,580		1,582,239
SolarCity Corp. *(c)		9,100		546,455
Spirit AeroSystems Holdings, Inc., Class A *		22,800		1,160,292
SPX Corp.		7,110		547,470
Standex International Corp.		3,000		242,610
Stanley Black & Decker, Inc.		31,713		3,130,073
Sun Hydraulics Corp.		5,600		217,896
TAL International Group, Inc. *		6,000		231,240
TASER International, Inc. *		11,800		356,242
Tecumseh Products Co. *		9,100		29,757
Teledyne Technologies, Inc. *		6,757		709,282
Tennant Co.		4,200		270,018
Terex Corp.		18,400		505,264
Textainer Group Holdings Ltd.		9,500		287,850
Textron, Inc.		61,300		2,695,974
The Babcock & Wilcox Co.		17,400		562,368
The Boeing Co.		126,736		18,166,338
The Gorman-Rupp Co.		5,141		139,373
The Greenbrier Cos., Inc. (c)		5,800		334,602
The KEYW Holding Corp. *(c)		8,400		81,060
The Manitowoc Co., Inc.		23,200		457,736
The Middleby Corp. *		11,500		1,165,410
The Timken Co.		13,100		514,699
The Toro Co.		10,600		710,624
Thermon Group Holdings, Inc. *		9,500		221,065
Titan International, Inc.		6,925		71,951
Titan Machinery, Inc. *(c)		3,600		52,740
TransDigm Group, Inc.		9,400		1,994,022
Trex Co., Inc. *		5,400		253,368
TriMas Corp. *		9,293		261,784
Trinity Industries, Inc.		28,300		766,647
Triumph Group, Inc.		8,100		479,844
Tutor Perini Corp. *		7,100		150,520
United Rentals, Inc. *		18,900		1,825,362
United Technologies Corp.		162,428		18,476,185
Universal Forest Products, Inc.		4,600		254,472
USG Corp. *		16,900		448,526
Valmont Industries, Inc.		4,300		541,886
Vectrus, Inc. *		1,938		49,535
Veritiv Corp. *		1,466		58,259
Vicor Corp. *		9,900		150,975
W.W. Grainger, Inc.		12,100		3,006,003
Wabash National Corp. *		11,200		157,024
WABCO Holdings, Inc. *		10,233		1,273,497
Wabtec Corp.		19,456		1,829,837
Watsco, Inc.		4,200		505,218
Watts Water Technologies, Inc., Class A		4,000		218,200
WESCO International, Inc. *		8,100		584,334
Woodward, Inc.		10,500		494,025
Xylem, Inc.		30,500		1,129,110
				341,364,477
Commercial & Professional Supplies 1.1%
ABM Industries, Inc.		7,200		230,760
Acacia Research Corp.		15,600		171,912

40 See financial notes

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
ACCO Brands Corp. *		42,001		330,548
AMREP Corp. *		2,500		12,950
ARC Document Solutions, Inc. *		7,000		59,780
Brady Corp., Class A		6,400		170,432
Casella Waste Systems, Inc., Class A *		13,300		72,884
CDI Corp.		5,500		75,020
Cenveo, Inc. *		7,300		14,454
Cintas Corp.		19,650		1,571,018
Civeo Corp.		17,200		80,324
Clean Harbors, Inc. *		9,100		502,775
Compx International, Inc.		2,000		23,260
Copart, Inc. *		27,218		968,144
Covanta Holding Corp.		26,400		535,656
CRA International, Inc. *		4,200		122,640
Deluxe Corp.		7,600		492,100
Ennis, Inc.		6,500		99,970
Equifax, Inc.		21,895		2,122,282
Exponent, Inc.		3,300		292,413
FTI Consulting, Inc. *		5,700		234,327
G&K Services, Inc., Class A		4,100		289,460
GP Strategies Corp. *		1,500		48,885
Healthcare Services Group, Inc.		12,656		383,097
Heidrick & Struggles International, Inc.		5,000		120,300
Herman Miller, Inc.		8,700		238,467
HNI Corp.		6,400		298,496
Hudson Global, Inc. *		3,220		8,404
Huron Consulting Group, Inc. *		5,000		303,100
ICF International, Inc. *		6,500		250,250
IHS, Inc., Class A *		15,200		1,907,144
InnerWorkings, Inc. *		7,400		46,842
Insperity, Inc.		6,800		327,488
Interface, Inc.		8,400		182,532
KAR Auction Services, Inc.		29,400		1,093,974
Kelly Services, Inc., Class A		5,700		93,594
Kforce, Inc.		7,105		161,568
Kimball International, Inc., Class B		9,100		92,092
Knoll, Inc.		7,000		159,390
Korn/Ferry International		6,600		208,098
ManpowerGroup, Inc.		14,537		1,240,442
Mastech Holdings, Inc. *		675		6,716
Matthews International Corp., Class A		5,300		257,209
McGrath RentCorp		4,600		152,306
Mistras Group, Inc. *		4,000		71,840
Mobile Mini, Inc.		6,200		238,948
MSA Safety, Inc.		4,700		214,978
Multi-Color Corp.		4,625		290,358
Navigant Consulting, Inc. *		14,000		202,440
Nielsen N.V.		67,100		3,015,474
NL Industries, Inc. *		7,800		57,486
On Assignment, Inc. *		6,500		218,725
Performant Financial Corp. *		7,700		22,869
Pitney Bowes, Inc.		35,500		794,135
Quad Graphics, Inc.		9,800		211,092
R.R. Donnelley & Sons Co.		36,638		682,200
Republic Services, Inc.		47,845		1,943,942
Resources Connection, Inc.		11,300		178,088
Robert Half International, Inc.		26,900		1,491,605
Rollins, Inc.		13,827		342,910
RPX Corp. *		10,300		160,268
Steelcase, Inc., Class A		11,500		202,055
Stericycle, Inc. *		16,600		2,214,938
Team, Inc. *		3,000		117,240
Tetra Tech, Inc.		13,131		355,981
The ADT Corp.		33,866		1,273,362
The Advisory Board Co. *		6,800		352,852
The Brink’s Co.		7,100		187,937
The Corporate Executive Board Co.		5,500		461,065
The Dun & Bradstreet Corp.		5,840		745,593
Towers Watson & Co., Class A		13,600		1,725,908
TRC Cos., Inc. *		3,350		25,025
TriNet Group, Inc. *		11,600		406,232
TrueBlue, Inc. *		10,100		290,678
Tyco International plc		80,758		3,180,250
UniFirst Corp.		3,700		418,951
United Stationers, Inc.		5,800		235,538
US Ecology, Inc.		3,500		164,185
Verisk Analytics, Inc., Class A *		31,000		2,326,240
Viad Corp.		3,625		96,316
Virco Mfg. Corp. *		1,170		3,112
WageWorks, Inc. *		5,000		252,000
Waste Connections, Inc.		26,412		1,252,193
Waste Management, Inc.		85,810		4,250,169
West Corp.		11,812		365,581
				47,094,262
Consumer Durables & Apparel 1.6%
Arctic Cat, Inc.		2,400		85,176
Beazer Homes USA, Inc. *		10,835		189,721
Blyth, Inc. *(c)		7,400		56,832
Brunswick Corp.		18,400		920,736
Callaway Golf Co.		31,065		300,709
Carter’s, Inc.		9,400		938,684
Cavco Industries, Inc. *		1,610		105,568
Coach, Inc.		52,508		2,006,331
Columbia Sportswear Co.		6,900		432,630
Crocs, Inc. *		15,000		198,000
CSS Industries, Inc.		4,800		136,032
D.R. Horton, Inc.		64,190		1,630,426
Deckers Outdoor Corp. *		7,500		555,000
Ethan Allen Interiors, Inc.		10,200		247,044
Flexsteel Industries, Inc.		1,900		68,419
Foamex International, Inc. *(b)(e)		2,278		—
Fossil Group, Inc. *		7,662		643,455
G-III Apparel Group Ltd. *		2,800		311,304
Garmin Ltd.		22,300		1,007,737
GoPro, Inc., Class A *(c)		5,100		255,408
Hanesbrands, Inc.		78,188		2,430,083
Harman International Industries, Inc.		13,600		1,773,168
Hasbro, Inc.		22,600		1,599,854
Helen of Troy Ltd. *		5,000		438,050
Hovnanian Enterprises, Inc., Class A *(c)		50,500		157,560
Iconix Brand Group, Inc. *		9,600		252,576
iRobot Corp. *		7,300		236,666
JAKKS Pacific, Inc. *(c)		7,500		50,025
Jarden Corp. *		33,849		1,732,392
Kate Spade & Co. *		27,500		899,250
KB Home		19,700		285,453

See financial notes 41

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number			Value
Security	of Shares			($)
La-Z-Boy, Inc.		7,500			196,575
LeapFrog Enterprises, Inc. *		9,000			20,340
Leggett & Platt, Inc.		23,300			989,551
Lennar Corp., Class A		36,290			1,662,082
Libbey, Inc.		7,232			284,579
lululemon athletica, Inc. *		20,157			1,282,791
M.D.C. Holdings, Inc.		9,003			241,641
M/I Homes, Inc. *		3,000			67,680
Marine Products Corp.		405			2,875
Mattel, Inc.		66,200			1,864,192
Meritage Homes Corp. *		5,900			252,343
Michael Kors Holdings Ltd. *		38,700			2,393,982
Mohawk Industries, Inc. *		12,319			2,137,346
Movado Group, Inc.		5,800			169,824
NACCO Industries, Inc., Class A		1,900			93,062
Nautilus, Inc. *		9,825			165,158
Newell Rubbermaid, Inc.		54,900			2,093,337
NIKE, Inc., Class B		134,395			13,283,602
NVR, Inc. *		700			928,543
Oxford Industries, Inc.		2,500			198,625
Perry Ellis International, Inc. *		5,500			131,560
Polaris Industries, Inc.		11,781			1,613,526
PulteGroup, Inc.		68,976			1,331,237
PVH Corp.		16,411			1,696,077
Quiksilver, Inc. *		25,900			42,994
Ralph Lauren Corp.		12,400			1,654,284
Skechers U.S.A., Inc., Class A *		6,500			584,480
Skyline Corp. *		2,600			9,308
Smith & Wesson Holding Corp. *		12,400			184,326
Standard Pacific Corp. *		28,500			230,850
Stanley Furniture Co., Inc. *		6,875			18,494
Steven Madden Ltd. *		9,112			355,550
Sturm, Ruger & Co., Inc.		2,700			147,987
Superior Uniform Group, Inc.		3,200			54,400
Taylor Morrison Home Corp., Class A *		9,876			182,904
Tempur Sealy International, Inc. *		10,300			627,373
The Ryland Group, Inc.		6,700			276,174
Toll Brothers, Inc. *		31,200			1,108,848
TRI Pointe Homes, Inc. *		25,000			357,000
Tumi Holdings, Inc. *		9,200			215,188
Tupperware Brands Corp.		9,700			648,542
Under Armour, Inc., Class A *		31,300	��		2,427,315
Universal Electronics, Inc. *		5,200			280,488
Vera Bradley, Inc. *		11,000			156,640
VF Corp.		66,900			4,845,567
Vince Holding Corp. *		5,757			106,101
Vista Outdoor, Inc. *		11,074			484,598
Whirlpool Corp.		16,214			2,847,178
Wolverine World Wide, Inc.		15,600			479,388
					71,370,794
Consumer Services 2.1%
Ambassadors Group, Inc. *		3,400			9,758
American Public Education, Inc. *		5,600			156,184
Apollo Education Group, Inc. *		16,450			276,113
Aramark		46,800			1,438,164
Ascent Capital Group, Inc., Class A *		3,116			124,765
Belmond Ltd., Class A *		12,600			155,232
Biglari Holdings, Inc. *		279			101,977
BJ’s Restaurants, Inc. *		7,300			341,640
Bloomin’ Brands, Inc.		20,900			473,594
Bob Evans Farms, Inc.		4,200			180,684
Boyd Gaming Corp. *		21,300			281,160
Bridgepoint Education, Inc. *		13,700			120,149
Bright Horizons Family Solutions, Inc. *		4,912			246,975
Brinker International, Inc.		12,650			700,431
Buffalo Wild Wings, Inc. *		3,000			477,900
Caesars Entertainment Corp. *(c)		8,300			78,767
Career Education Corp. *		25,114			105,479
Carnival Corp.		89,239			3,923,839
Chipotle Mexican Grill, Inc. *		5,879			3,652,858
Choice Hotels International, Inc.		5,200			311,324
Churchill Downs, Inc.		2,900			345,593
Chuy’s Holdings, Inc. *		6,760			152,911
ClubCorp Holdings, Inc.		10,442			228,575
Cracker Barrel Old Country Store, Inc.		5,146			681,742
Darden Restaurants, Inc.		25,500			1,626,135
Denny’s Corp. *		21,100			219,651
DeVry Education Group, Inc.		9,400			284,256
Diamond Resorts International, Inc. *		12,100			387,321
DineEquity, Inc.		3,000			289,290
Domino’s Pizza, Inc.		9,200			992,220
Dover Downs Gaming & Entertainment, Inc. *		5,899			6,843
Dover Motorsports, Inc.		1,400			3,416
Dunkin’ Brands Group, Inc.		21,600			1,125,576
Eldorado Resorts, Inc. *		5,800			40,890
Extended Stay America, Inc.		13,200			267,432
Fiesta Restaurant Group, Inc. *		4,300			217,365
Graham Holdings Co., Class B		900			920,637
Grand Canyon Education, Inc. *		8,500			384,880
H&R Block, Inc.		54,700			1,654,128
Hilton Worldwide Holdings, Inc. *		79,147			2,292,097
Houghton Mifflin Harcourt Co. *		19,600			448,056
Hyatt Hotels Corp., Class A *		9,600			557,280
International Speedway Corp., Class A		6,445			234,340
Interval Leisure Group, Inc.		10,769			266,964
Isle of Capri Casinos, Inc. *		11,800			167,796
ITT Educational Services, Inc. *(c)		5,600			29,568
Jack in the Box, Inc.		7,000			607,390
K12, Inc. *		12,100			195,657
Krispy Kreme Doughnuts, Inc. *		14,100			250,980
La Quinta Holdings, Inc. *		15,800			380,464
Lakes Entertainment, Inc. *		3,400			29,784
Las Vegas Sands Corp.		69,800			3,691,024
Life Time Fitness, Inc. *		5,500			393,250
LifeLock, Inc. *		11,000			160,710
Luby’s, Inc. *		6,900			36,570
Marriott International, Inc., Class A		39,208			3,138,600
Marriott Vacations Worldwide Corp.		4,080			335,417
McDonald’s Corp.		185,640			17,923,542
MGM Resorts International *		69,300			1,465,695
Monarch Casino & Resort, Inc. *		8,000			146,400
Norwegian Cruise Line Holdings Ltd. *		20,700			1,004,157
Panera Bread Co., Class A *		5,600			1,021,888

42 See financial notes

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Papa John’s International, Inc.		6,800		417,316
Penn National Gaming, Inc. *		17,000		273,360
Pinnacle Entertainment, Inc. *		9,800		360,248
Popeyes Louisiana Kitchen, Inc. *		6,600		367,488
Red Robin Gourmet Burgers, Inc. *		2,300		172,707
Regis Corp. *		17,300		285,796
Royal Caribbean Cruises Ltd.		30,900		2,103,054
Ruby Tuesday, Inc. *		33,713		245,431
Scientific Games Corp., Class A *(c)		10,900		138,103
SeaWorld Entertainment, Inc.		12,511		265,233
Service Corp. International		35,000		968,800
ServiceMaster Global Holdings, Inc. *		11,800		407,808
Six Flags Entertainment Corp.		15,600		733,512
Sonic Corp.		12,868		368,668
Sotheby’s		11,338		484,246
Speedway Motorsports, Inc.		6,700		153,430
Starbucks Corp.		287,394		14,248,995
Starwood Hotels & Resorts Worldwide, Inc.		33,230		2,856,118
Steiner Leisure Ltd. *		3,000		144,720
Strayer Education, Inc. *		4,300		218,096
Texas Roadhouse, Inc.		16,100		540,960
The Cheesecake Factory, Inc.		7,087		355,271
The Wendy’s Co.		50,775		513,843
Vail Resorts, Inc.		7,500		744,075
Weight Watchers International, Inc. *(c)		6,500		55,575
Wyndham Worldwide Corp.		23,044		1,967,958
Wynn Resorts Ltd.		15,600		1,732,692
Yum! Brands, Inc.		85,200		7,323,792
				96,210,778
Diversified Financials 4.6%
Affiliated Managers Group, Inc. *		11,217		2,536,500
Ally Financial, Inc. *		85,600		1,873,784
American Express Co.		170,403		13,197,712
Ameriprise Financial, Inc.		35,830		4,488,782
Arlington Asset Investment Corp., Class A		6,941		150,481
Artisan Partners Asset Management, Inc., Class A		5,500		246,345
Ashford, Inc. *		103		10,274
Asta Funding, Inc. *		6,000		50,400
Atlanticus Holdings Corp. *		4,629		12,730
Berkshire Hathaway, Inc., Class B *		352,202		49,734,444
BGC Partners, Inc., Class A		28,300		283,991
BlackRock, Inc.		24,332		8,855,388
Calamos Asset Management, Inc., Class A		5,000		61,850
Capital One Financial Corp.		105,257		8,510,028
Cash America International, Inc.		6,900		178,848
CBOE Holdings, Inc.		20,800		1,170,416
CME Group, Inc.		60,450		5,495,509
Cohen & Steers, Inc.		5,400		204,444
Cowen Group, Inc., Class A *		11,889		66,460
Credit Acceptance Corp. *		2,100		496,020
Discover Financial Services		84,407		4,893,074
E*TRADE Financial Corp. *		53,233		1,532,578
Eaton Vance Corp.		22,700		932,516
Encore Capital Group, Inc. *		5,600		226,464
Enova International, Inc. *		6,313		116,854
Evercore Partners, Inc., Class A		6,500		313,560
Ezcorp, Inc., Class A *		20,600		189,520
FBR & Co. *		1,000		21,460
Federated Investors, Inc., Class B		14,650		503,960
Financial Engines, Inc.		7,800		328,926
First Cash Financial Services, Inc. *		3,800		183,692
FNFV Group *		16,478		246,346
Franklin Resources, Inc.		74,800		3,856,688
FXCM, Inc., Class A		14,077		28,295
GAMCO Investors, Inc., Class A		3,400		262,854
Green Dot Corp., Class A *		10,049		161,789
Greenhill & Co., Inc.		4,500		177,975
HFF, Inc., Class A		9,800		384,062
Interactive Brokers Group, Inc., Class A		7,600		258,020
Intercontinental Exchange, Inc.		21,886		4,914,064
INTL FCStone, Inc. *		4,437		142,428
Invesco Ltd.		88,200		3,653,244
Investment Technology Group, Inc. *		8,050		229,345
Janus Capital Group, Inc.		26,200		468,980
KCG Holdings, Inc., Class A *		15,533		199,444
Legg Mason, Inc.		17,550		924,008
Leucadia National Corp.		57,450		1,365,586
LPL Financial Holdings, Inc.		12,800		518,016
MarketAxess Holdings, Inc.		8,900		764,065
McGraw Hill Financial, Inc.		52,461		5,471,682
Moody’s Corp.		37,700		4,053,504
Morgan Stanley		304,225		11,350,635
MSCI, Inc.		20,000		1,223,800
Navient Corp.		72,000		1,406,880
Nelnet, Inc., Class A		6,400		286,528
NewStar Financial, Inc. *		13,500		155,250
Northern Trust Corp.		45,100		3,299,065
NorthStar Asset Management Group, Inc.		33,475		703,979
PHH Corp. *		7,186		180,512
PICO Holdings, Inc. *		3,700		66,637
Piper Jaffray Cos. *		3,950		199,278
PRA Group, Inc. *		9,800		536,795
Raymond James Financial, Inc.		30,750		1,738,297
RCS Capital Corp., Class A (c)		9,017		77,456
Resource America, Inc., Class A		4,000		34,160
Santander Consumer USA Holdings, Inc.		24,000		592,560
SEI Investments Co.		22,800		1,041,048
SLM Corp.		72,000		733,680
Springleaf Holdings, Inc. *		5,500		275,000
State Street Corp.		78,960		6,089,395
Stifel Financial Corp. *		11,785		622,719
Synchrony Financial *		21,900		682,185
T. Rowe Price Group, Inc.		49,500		4,018,410
TD Ameritrade Holding Corp.		56,600		2,051,750
The Bank of New York Mellon Corp.		215,118		9,108,096
The Charles Schwab Corp. (a)		224,326		6,841,943
The First Marblehead Corp. *		750		4,733
The Goldman Sachs Group, Inc.		79,155		15,547,625

See financial notes 43

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
The NASDAQ OMX Group, Inc.		19,100		928,833
Virtus Investment Partners, Inc.		875		116,918
Voya Financial, Inc.		45,389		1,921,770
Waddell & Reed Financial, Inc., Class A		14,750		727,470
Walter Investment Management Corp. *(c)		5,325		93,773
Westwood Holdings Group, Inc.		1,785		104,583
WisdomTree Investments, Inc.		20,500		390,320
World Acceptance Corp. *(c)		3,000		253,860
				208,353,348
Energy 7.8%
Abraxas Petroleum Corp. *		36,200		137,560
Adams Resources & Energy, Inc.		2,300		107,180
Alon USA Energy, Inc.		8,700		139,983
Alpha Natural Resources, Inc. *(c)		29,330		23,757
Anadarko Petroleum Corp.		96,568		9,087,049
Antero Resources Corp. *		9,700		429,807
Apache Corp.		71,572		4,895,525
Approach Resources, Inc. *(c)		4,000		35,080
Arch Coal, Inc. *(c)		26,500		25,816
Atwood Oceanics, Inc.		9,500		317,110
Baker Hughes, Inc.		83,465		5,714,014
Basic Energy Services, Inc. *		8,500		86,615
Bill Barrett Corp. *		6,700		77,720
Bonanza Creek Energy, Inc. *		6,200		170,872
Bristow Group, Inc.		6,000		372,780
C&J Energy Services Ltd. *		10,200		177,990
Cabot Oil & Gas Corp.		86,400		2,922,048
California Resources Corp.		55,701		518,019
Callon Petroleum Co. *		18,200		162,708
Cameron International Corp. *		39,247		2,151,521
CARBO Ceramics, Inc. (c)		3,300		145,959
Carrizo Oil & Gas, Inc. *		6,800		378,964
Cheniere Energy, Inc. *		42,000		3,212,580
Chesapeake Energy Corp. (c)		102,430		1,615,321
Chevron Corp.		363,323		40,350,652
Cimarex Energy Co.		15,562		1,935,913
Clayton Williams Energy, Inc. *		2,500		139,175
Clean Energy Fuels Corp. *(c)		17,300		170,751
Cloud Peak Energy, Inc. *		8,700		56,463
Cobalt International Energy, Inc. *		75,700		809,990
Comstock Resources, Inc. (c)		6,400		34,368
Concho Resources, Inc. *		22,631		2,866,442
ConocoPhillips		237,731		16,146,690
CONSOL Energy, Inc.		44,600		1,448,608
Contango Oil & Gas Co. *		5,200		130,364
Continental Resources, Inc. *		17,000		894,710
Core Laboratories N.V.		9,800		1,286,544
CVR Energy, Inc.		5,100		204,204
Delek US Holdings, Inc.		10,700		395,044
Denbury Resources, Inc.		57,225		504,152
Devon Energy Corp.		74,260		5,065,275
DHT Holdings, Inc.		26,011		208,088
Diamond Offshore Drilling, Inc. (c)		11,400		381,558
Diamondback Energy, Inc. *		13,721		1,132,943
Dresser-Rand Group, Inc. *		15,200		1,256,584
Dril-Quip, Inc. *		6,700		534,124
Energen Corp.		11,700		832,689
Energy XXI Ltd. (c)		15,061		65,817
ENGlobal Corp. *		4,000		6,480
Ensco plc, Class A		41,400		1,129,392
EOG Resources, Inc.		106,048		10,493,450
EP Energy Corp., Class A *		19,147		282,801
EQT Corp.		28,600		2,572,284
Era Group, Inc. *		2,850		63,213
EXCO Resources, Inc. (c)		51,400		105,884
Exterran Holdings, Inc.		10,720		397,390
Exxon Mobil Corp.		810,099		70,778,350
FMC Technologies, Inc. *		41,664		1,837,382
Forum Energy Technologies, Inc. *		11,200		260,512
Frank’s International N.V.		14,000		291,200
Geospace Technologies Corp. *		1,800		38,880
Goodrich Petroleum Corp. *		9,800		37,926
Green Plains, Inc.		9,300		289,602
Gulf Island Fabrication, Inc.		4,100		54,079
Gulfmark Offshore, Inc., Class A (c)		4,100		61,541
Gulfport Energy Corp. *		15,603		763,611
Halcon Resources Corp. *(c)		75,700		112,793
Halliburton Co.		166,144		8,132,749
Harvest Natural Resources, Inc. *		9,300		5,954
Helix Energy Solutions Group, Inc. *		14,064		231,775
Helmerich & Payne, Inc.		19,017		1,482,755
Hercules Offshore, Inc. *(c)		22,900		18,437
Hess Corp.		47,300		3,637,370
HollyFrontier Corp.		38,654		1,499,002
Hornbeck Offshore Services, Inc. *		5,000		114,250
Houston American Energy Corp. *		4,000		840
ION Geophysical Corp. *		13,900		31,692
Key Energy Services, Inc. *		22,300		54,412
Kinder Morgan, Inc.		331,078		14,219,800
Kosmos Energy Ltd. *		31,100		304,158
Laredo Petroleum, Inc. *(c)		22,700		358,660
Magnum Hunter Resources Corp. *(c)		22,939		50,236
Marathon Oil Corp.		143,814		4,472,615
Marathon Petroleum Corp.		52,504		5,175,319
Matador Resources Co. *		12,100		335,412
Matrix Service Co. *		8,000		175,760
McDermott International, Inc. *		39,100		205,275
Memorial Resource Development Corp. *		16,000		323,040
Midstates Petroleum Co., Inc. *(c)		14,400		16,560
Murphy Oil Corp.		29,000		1,380,690
Nabors Industries Ltd.		70,734		1,181,258
National Oilwell Varco, Inc.		86,122		4,685,898
Natural Gas Services Group, Inc. *		7,500		190,125
Newfield Exploration Co. *		33,100		1,298,844
Newpark Resources, Inc. *		11,500		117,990
Noble Corp., plc		46,155		798,943
Noble Energy, Inc.		77,436		3,927,554
Northern Oil & Gas, Inc. *(c)		8,200		72,488
Oasis Petroleum, Inc. *(c)		24,200		434,148
Occidental Petroleum Corp.		149,753		11,995,215
Oceaneering International, Inc.		23,100		1,273,041
Oil States International, Inc. *		8,600		409,274
ONEOK, Inc.		45,929		2,209,185
Pacific Ethanol, Inc. *(c)		10,200		121,992
Panhandle Oil & Gas, Inc., Class A		6,200		141,360
Paragon Offshore plc (c)		15,385		27,847

44 See financial notes

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Parker Drilling Co. *		18,300		68,625
Parsley Energy, Inc., Class A *		17,000		294,780
Patterson-UTI Energy, Inc.		28,500		636,975
PBF Energy, Inc., Class A		13,813		392,013
PDC Energy, Inc. *		5,800		329,092
Peabody Energy Corp. (c)		46,800		221,364
Penn Virginia Corp. *(c)		12,200		81,496
PetroQuest Energy, Inc. *		13,200		35,376
PHI, Inc. - Non Voting Shares *		4,000		125,320
Phillips 66		104,465		8,285,119
Pioneer Energy Services Corp. *		13,100		97,595
Pioneer Natural Resources Co.		28,233		4,878,098
QEP Resources, Inc.		30,600		688,500
Range Resources Corp.		30,805		1,957,966
Resolute Energy Corp. *		11,900		14,756
REX American Resources Corp. *		4,875		308,197
Rex Energy Corp. *		8,000		40,000
Rice Energy, Inc. *		12,036		296,447
RigNet, Inc. *		4,141		155,122
Rosetta Resources, Inc. *		9,700		221,451
Rowan Cos. plc, Class A		20,500		434,395
RPC, Inc.		16,118		256,437
RSP Permian, Inc. *		12,800		371,456
Sanchez Energy Corp. *(c)		8,700		127,803
SandRidge Energy, Inc. *(c)		72,792		137,577
Schlumberger Ltd.		244,503		23,132,429
SEACOR Holdings, Inc. *		4,850		352,401
SemGroup Corp., Class A		7,000		589,330
Seventy Seven Energy, Inc. *		6,366		32,276
SM Energy Co.		11,200		649,264
Solazyme, Inc. *(c)		12,100		46,585
Southwestern Energy Co. *		79,675		2,233,290
Spectra Energy Corp.		124,778		4,647,980
Stone Energy Corp. *		7,383		126,028
Superior Energy Services, Inc.		26,099		665,524
Swift Energy Co. *(c)		5,500		16,610
Synergy Resources Corp. *		11,100		132,978
Targa Resources Corp.		8,300		871,251
Teekay Corp.		8,600		427,506
Tesco Corp.		7,000		90,020
Tesoro Corp.		24,700		2,120,001
TETRA Technologies, Inc. *		12,100		87,362
The Williams Cos., Inc.		131,000		6,705,890
Tidewater, Inc. (c)		7,700		213,213
Transocean Ltd. (c)		81,000		1,524,420
Ultra Petroleum Corp. *(c)		25,300		430,859
Unit Corp. *		7,400		257,816
US Silica Holdings, Inc. (c)		10,600		395,910
VAALCO Energy, Inc. *		12,600		31,122
Valero Energy Corp.		98,280		5,592,132
W&T Offshore, Inc.		7,500		48,225
Warren Resources, Inc. *		22,100		23,868
Weatherford International plc *		155,549		2,263,238
Western Refining, Inc.		12,253		539,745
Westmoreland Coal Co. *		9,600		272,832
Whiting Petroleum Corp. *		42,070		1,594,874
World Fuel Services Corp.		11,900		660,450
WPX Energy, Inc. *		33,353		458,604
				348,135,812
Food & Staples Retailing 2.0%
Casey’s General Stores, Inc.		7,100		583,478
Costco Wholesale Corp.		84,785		12,128,494
CVS Health Corp.		216,837		21,529,746
Ingles Markets, Inc., Class A		10,200		426,972
PriceSmart, Inc.		7,100		571,266
Rite Aid Corp. *		161,380		1,244,240
SpartanNash, Co.		12,540		378,332
Sprouts Farmers Market, Inc. *		26,674		853,168
SUPERVALU, Inc. *		39,532		347,486
Sysco Corp.		112,236		4,156,099
The Andersons, Inc.		3,600		153,684
The Fresh Market, Inc. *		11,100		390,054
The Kroger Co.		92,366		6,364,941
United Natural Foods, Inc. *		8,800		593,648
Wal-Mart Stores, Inc.		305,489		23,843,416
Walgreens Boots Alliance, Inc.		168,708		13,990,954
Weis Markets, Inc.		2,400		106,440
Whole Foods Market, Inc.		70,777		3,380,310
				91,042,728
Food, Beverage & Tobacco 4.5%
Alico, Inc.		2,000		93,540
Alliance One International, Inc. *		24,600		32,472
Altria Group, Inc.		377,323		18,885,016
Archer-Daniels-Midland Co.		124,658		6,093,283
B&G Foods, Inc.		7,400		224,960
Boulder Brands, Inc. *		9,100		86,814
Brown-Forman Corp., Class B		28,516		2,572,999
Bunge Ltd.		26,700		2,306,079
Cal-Maine Foods, Inc. (c)		5,200		232,492
Calavo Growers, Inc.		4,846		245,450
Campbell Soup Co.		34,100		1,524,611
Coca-Cola Bottling Co. Consolidated		3,248		367,024
Coca-Cola Enterprises, Inc.		41,600		1,847,456
ConAgra Foods, Inc.		88,393		3,195,407
Constellation Brands, Inc., Class A *		33,769		3,915,178
Darling Ingredients, Inc. *		25,900		353,794
Dean Foods Co.		13,556		220,285
Diamond Foods, Inc. *		5,200		145,808
Dr Pepper Snapple Group, Inc.		34,000		2,535,720
Farmer Bros. Co. *		4,500		112,185
Flowers Foods, Inc.		44,605		996,476
Fresh Del Monte Produce, Inc.		7,900		291,747
General Mills, Inc.		115,838		6,410,475
Hormel Foods Corp.		27,400		1,489,190
Ingredion, Inc.		11,800		936,920
J&J Snack Foods Corp.		2,093		218,363
John B. Sanfilippo & Son, Inc.		5,000		260,050
Kellogg Co.		47,400		3,001,842
Keurig Green Mountain, Inc.		23,250		2,705,602
Kraft Foods Group, Inc.		113,804		9,644,889
Lancaster Colony Corp.		3,400		304,844
Landec Corp. *		9,100		129,311
Limoneira Co.		2,900		66,526
Lorillard, Inc.		70,044		4,893,274
McCormick & Co., Inc. - Non Voting Shares		25,100		1,890,030

See financial notes 45

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Mead Johnson Nutrition Co.		39,500		3,788,840
Molson Coors Brewing Co., Class B		31,500		2,315,565
Mondelez International, Inc., Class A		318,124		12,206,418
Monster Beverage Corp. *		27,889		3,823,861
National Beverage Corp. *		6,400		143,040
PepsiCo, Inc.		284,458		27,057,645
Philip Morris International, Inc.		299,709		25,016,710
Pilgrim’s Pride Corp. (c)		12,466		307,910
Pinnacle Foods, Inc.		23,600		956,980
Post Holdings, Inc. *		11,950		560,933
Primo Water Corp. *		1,000		5,190
Reynolds American, Inc.		56,828		4,165,492
Rocky Mountain Chocolate Factory, Inc.		3,427		44,003
Sanderson Farms, Inc. (c)		2,850		214,092
Seaboard Corp. *		100		360,000
Snyder’s-Lance, Inc.		8,900		262,817
The Boston Beer Co., Inc. Class A *		2,100		520,380
The Coca-Cola Co.		756,214		30,672,040
The Hain Celestial Group, Inc. *		19,412		1,169,379
The Hershey Co.		27,800		2,555,376
The JM Smucker Co.		18,493		2,143,708
The WhiteWave Foods Co. *		31,825		1,399,345
Tootsie Roll Industries, Inc. (c)		7,818		242,201
TreeHouse Foods, Inc. *		8,622		700,624
Tyson Foods, Inc., Class A		59,084		2,333,818
Universal Corp.		4,800		225,744
Vector Group Ltd.		15,114		334,775
				201,756,998
Health Care Equipment & Services 5.0%
Abaxis, Inc.		5,600		358,400
Abbott Laboratories		288,143		13,375,598
ABIOMED, Inc. *		7,800		493,116
Acadia Healthcare Co., Inc. *		12,500		856,250
Accuray, Inc. *		21,200		172,356
Aceto Corp.		7,900		153,102
Aetna, Inc.		65,685		7,019,756
Air Methods Corp. *		8,700		397,590
Alere, Inc. *		12,441		590,699
Align Technology, Inc. *		16,400		964,976
Alliance HealthCare Services, Inc. *		360		7,657
Allscripts Healthcare Solutions, Inc. *		31,560		419,748
Amedisys, Inc. *		10,834		301,294
AmerisourceBergen Corp.		39,596		4,525,823
AMN Healthcare Services, Inc. *		17,210		392,560
Amsurg Corp. *		7,300		457,856
Analogic Corp.		2,700		228,150
Anika Therapeutics, Inc. *		4,606		157,157
Antares Pharma, Inc. *		28,100		68,845
Anthem, Inc.		50,123		7,565,064
athenahealth, Inc. *		7,800		956,748
Atrion Corp.		616		200,108
Baxter International, Inc.		105,806		7,273,104
Becton, Dickinson & Co.		39,908		5,621,840
Bio-Reference Laboratories, Inc. *		7,200		238,464
BioScrip, Inc. *		8,372		39,348
Boston Scientific Corp. *		255,567		4,554,204
Brookdale Senior Living, Inc. *		33,925		1,229,103
C.R. Bard, Inc.		13,760		2,292,141
Cantel Medical Corp.		8,034		359,843
Capital Senior Living Corp. *		8,394		219,671
Cardinal Health, Inc.		61,818		5,213,730
Cardiovascular Systems, Inc. *		5,000		156,500
Centene Corp. *		22,000		1,363,780
Cerner Corp. *		62,800		4,509,668
Chemed Corp.		3,900		449,475
Cigna Corp.		50,451		6,288,213
Community Health Systems, Inc. *		20,196		1,084,121
Computer Programs & Systems, Inc.		3,600		188,388
CONMED Corp.		7,300		366,679
CorVel Corp. *		2,700		96,498
Cross Country Healthcare, Inc. *		12,500		138,750
CryoLife, Inc.		9,050		92,310
Cyberonics, Inc. *		4,200		255,822
DaVita HealthCare Partners, Inc. *		34,300		2,781,730
DENTSPLY International, Inc.		24,300		1,239,300
DexCom, Inc. *		18,800		1,270,316
Edwards Lifesciences Corp. *		19,700		2,495,005
Endologix, Inc. *		13,700		213,172
Envision Healthcare Holdings, Inc. *		44,100		1,674,036
ExamWorks Group, Inc. *		6,200		253,890
Express Scripts Holding Co. *		141,252		12,204,173
Five Star Quality Care, Inc. *		14,335		60,924
Globus Medical, Inc., Class A *		13,900		332,071
Greatbatch, Inc. *		6,700		361,264
Haemonetics Corp. *		7,400		299,922
Halyard Health, Inc. *		8,217		398,360
Hanger, Inc. *		5,400		120,636
HCA Holdings, Inc. *		58,700		4,344,387
Health Net, Inc. *		15,500		816,075
HealthSouth Corp.		20,600		931,532
HealthStream, Inc. *		6,800		196,792
Healthways, Inc. *		8,100		140,940
HeartWare International, Inc. *		4,100		310,411
Henry Schein, Inc. *		16,100		2,207,310
Hill-Rom Holdings, Inc.		10,200		509,388
HMS Holdings Corp. *		12,200		207,522
Hologic, Inc. *		49,612		1,673,909
Humana, Inc.		28,600		4,736,160
ICU Medical, Inc. *		3,350		282,639
IDEXX Laboratories, Inc. *		8,600		1,078,182
IMS Health Holdings, Inc. *		11,500		317,285
Insulet Corp. *		9,800		292,530
Integra LifeSciences Holdings Corp. *		5,300		311,534
Intuitive Surgical, Inc. *		7,550		3,744,649
Invacare Corp.		6,000		120,420
IPC Healthcare, Inc. *		4,000		195,680
Kindred Healthcare, Inc.		11,559		265,279
Laboratory Corp. of America Holdings *		17,869		2,136,418
Landauer, Inc.		2,100		67,746
LeMaitre Vascular, Inc.		6,800		61,608
LifePoint Hospitals, Inc. *		9,607		719,372
Magellan Health, Inc. *		3,907		247,313

46 See financial notes

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Masimo Corp. *		8,500		286,960
McKesson Corp.		43,952		9,818,877
MedAssets, Inc. *		10,200		206,448
Medidata Solutions, Inc. *		9,100		486,213
MEDNAX, Inc. *		19,600		1,387,288
Medtronic plc		277,088		20,629,202
Meridian Bioscience, Inc.		10,050		178,086
Merit Medical Systems, Inc. *		10,277		199,477
Molina Healthcare, Inc. *		6,550		387,956
National HealthCare Corp.		4,100		259,530
Natus Medical, Inc. *		7,600		286,596
Neogen Corp. *		10,257		456,847
NuVasive, Inc. *		10,000		447,300
NxStage Medical, Inc. *		18,700		342,771
Omnicare, Inc.		21,900		1,926,762
Omnicell, Inc. *		7,400		262,922
OraSure Technologies, Inc. *		12,200		76,860
Orthofix International N.V. *		2,800		90,468
Owens & Minor, Inc.		9,100		306,852
Patterson Cos., Inc.		18,800		882,754
PDI, Inc. *		2,900		3,683
PharMerica Corp. *		4,813		137,941
Premier, Inc., Class A *		5,000		189,500
Quality Systems, Inc.		10,500		163,747
Quest Diagnostics, Inc.		25,720		1,836,922
Quidel Corp. *		5,200		121,160
ResMed, Inc.		28,000		1,790,320
RTI Surgical, Inc. *		18,100		101,360
Select Medical Holdings Corp.		22,600		328,830
Sirona Dental Systems, Inc. *		9,200		853,300
St. Jude Medical, Inc.		54,300		3,803,715
STERIS Corp.		13,200		877,800
Stryker Corp.		57,700		5,322,248
SurModics, Inc. *		4,200		105,924
Symmetry Surgical, Inc. *		2,050		15,846
Team Health Holdings, Inc. *		14,000		833,980
Teleflex, Inc.		9,600		1,180,416
Tenet Healthcare Corp. *		18,812		900,342
The Cooper Cos., Inc.		9,081		1,617,054
The Ensign Group, Inc.		5,300		223,183
The Providence Service Corp. *		4,800		204,096
The Spectranetics Corp. *		6,700		171,855
Thoratec Corp. *		8,636		346,390
Tornier N.V. *		6,100		157,807
Triple-S Management Corp., Class B *		5,300		99,216
U.S. Physical Therapy, Inc.		3,500		165,060
Unilife Corp. *(c)		29,100		97,485
UnitedHealth Group, Inc.		183,781		20,473,203
Universal American Corp. *		20,600		205,794
Universal Health Services, Inc., Class B		18,100		2,116,795
Utah Medical Products, Inc.		2,500		134,775
Varian Medical Systems, Inc. *		21,100		1,874,735
VCA, Inc. *		16,800		856,296
Veeva Systems, Inc., Class A *		6,100		161,955
Vocera Communications, Inc. *		3,700		42,143
WellCare Health Plans, Inc. *		8,200		634,926
West Pharmaceutical Services, Inc.		11,300		602,064
Wright Medical Group, Inc. *		8,600		218,182
Zeltiq Aesthetics, Inc. *		9,601		294,751
Zimmer Holdings, Inc.		33,300		3,657,672
				223,157,025
Household & Personal Products 1.7%
Avon Products, Inc.		70,000		571,900
Central Garden & Pet Co., Class A *		8,600		84,280
Church & Dwight Co., Inc.		26,400		2,142,888
Colgate-Palmolive Co.		165,209		11,115,262
Coty, Inc., Class A *		15,600		372,996
Elizabeth Arden, Inc. *(c)		3,500		49,245
Energizer Holdings, Inc.		10,933		1,493,666
Herbalife Ltd. *(c)		15,600		647,712
HRG Group, Inc. *		19,100		239,323
Inter Parfums, Inc.		5,613		169,400
Kimberly-Clark Corp.		70,539		7,737,423
Medifast, Inc. *		3,500		105,000
Nu Skin Enterprises, Inc., Class A		9,600		542,880
Nutraceutical International Corp. *		5,000		97,500
Oil-Dri Corp. of America		1,600		52,512
Orchids Paper Products Co.		2,500		53,725
Revlon, Inc., Class A *		5,400		211,194
Spectrum Brands Holdings, Inc.		3,500		320,005
The Clorox Co.		24,700		2,620,670
The Estee Lauder Cos., Inc., Class A		43,100		3,503,599
The Female Health Co. (c)		7,500		21,900
The Procter & Gamble Co.		519,124		41,275,549
USANA Health Sciences, Inc. *		2,682		305,051
WD-40 Co.		4,600		372,416
				74,106,096
Insurance 2.9%
ACE Ltd.		63,428		6,786,162
Aflac, Inc.		86,700		5,465,568
Alleghany Corp. *		3,940		1,865,669
Allied World Assurance Co. Holdings AG		14,700		604,758
Ambac Financial Group, Inc. *		13,400		308,334
American Equity Investment Life Holding Co.		12,600		339,570
American Financial Group, Inc.		18,750		1,185,000
American International Group, Inc.		268,615		15,120,338
American National Insurance Co.		2,300		230,138
AMERISAFE, Inc.		4,000		180,760
AmTrust Financial Services, Inc.		7,314		434,964
Aon plc		53,796		5,176,789
Arch Capital Group Ltd. *		23,800		1,444,184
Argo Group International Holdings Ltd.		5,512		270,033
Arthur J. Gallagher & Co.		33,400		1,597,522
Aspen Insurance Holdings Ltd.		10,400		485,992
Assurant, Inc.		17,600		1,081,696
Assured Guaranty Ltd.		31,900		829,081
Axis Capital Holdings Ltd.		17,600		916,256
Baldwin & Lyons, Inc., Class B		1,950		44,246
Brown & Brown, Inc.		19,300		616,635
Cincinnati Financial Corp.		35,450		1,795,188
Citizens, Inc. *(c)		16,000		90,240
CNA Financial Corp.		6,900		278,070

See financial notes 47

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
CNO Financial Group, Inc.		39,000		663,000
Crawford & Co., Class B		5,800		47,386
EMC Insurance Group, Inc.		1,200		41,568
Employers Holdings, Inc.		7,500		183,075
Endurance Specialty Holdings Ltd.		6,200		374,356
Enstar Group Ltd. *		1,300		184,652
Erie Indemnity Co., Class A		3,600		297,900
Everest Re Group Ltd.		8,700		1,556,517
FBL Financial Group, Inc., Class A		5,190		302,421
Federated National Holding Co.		1,500		43,200
First American Financial Corp.		16,800		584,472
FNF Group		49,439		1,779,310
Genworth Financial, Inc., Class A *		86,800		762,972
Greenlight Capital Re Ltd., Class A *		7,400		224,886
HCC Insurance Holdings, Inc.		16,550		942,688
Horace Mann Educators Corp.		8,300		281,951
Independence Holding Co.		2,970		36,947
Infinity Property & Casualty Corp.		2,500		185,375
Kemper Corp.		7,700		290,059
Lincoln National Corp.		51,626		2,916,353
Loews Corp.		60,174		2,505,645
Maiden Holdings Ltd.		18,900		274,617
Markel Corp. *		2,503		1,853,822
Marsh & McLennan Cos., Inc.		104,200		5,851,872
MBIA, Inc. *		25,250		220,937
Mercury General Corp.		5,400		296,676
MetLife, Inc.		220,203		11,294,212
Montpelier Re Holdings Ltd.		8,100		308,691
National General Holdings Corp.		10,400		201,136
National Western Life Insurance Co., Class A		500		119,805
Old Republic International Corp.		43,822		670,038
OneBeacon Insurance Group Ltd., Class A		14,800		223,184
PartnerRe Ltd.		8,900		1,139,200
Primerica, Inc.		10,700		494,554
Principal Financial Group, Inc.		48,641		2,486,528
ProAssurance Corp.		8,540		383,873
Prudential Financial, Inc.		91,072		7,431,475
Reinsurance Group of America, Inc.		12,900		1,181,898
RenaissanceRe Holdings Ltd.		8,532		874,445
RLI Corp.		5,600		278,096
Safety Insurance Group, Inc.		3,400		197,710
Selective Insurance Group, Inc.		7,800		210,132
StanCorp Financial Group, Inc.		6,300		454,104
State Auto Financial Corp.		5,500		129,910
Stewart Information Services Corp.		3,600		131,400
Symetra Financial Corp.		19,000		451,250
The Allstate Corp.		77,867		5,424,215
The Chubb Corp.		46,494		4,572,685
The Hanover Insurance Group, Inc.		6,900		473,133
The Hartford Financial Services Group, Inc.		78,262		3,190,742
The Navigators Group, Inc. *		4,200		327,810
The Phoenix Cos., Inc. *		475		16,202
The Progressive Corp.		99,564		2,654,376
The Travelers Cos., Inc.		62,752		6,344,855
Torchmark Corp.		22,200		1,245,642
United Fire Group, Inc.		5,000		149,350
Universal Insurance Holdings, Inc.		8,700		208,974
Unum Group		43,114		1,472,774
Validus Holdings Ltd.		16,857		705,128
W. R. Berkley Corp.		18,050		884,269
White Mountains Insurance Group Ltd.		1,600		1,081,552
Willis Group Holdings plc		39,800		1,935,474
XL Group plc		46,000		1,705,680
				130,904,352
Materials 3.5%
A. Schulman, Inc.		5,300		224,985
A.M. Castle & Co. *(c)		5,800		22,736
AEP Industries, Inc. *		1,900		95,190
Air Products & Chemicals, Inc.		36,200		5,192,166
Airgas, Inc.		15,100		1,529,328
AK Steel Holding Corp. *		32,127		163,205
Albemarle Corp.		23,603		1,409,099
Alcoa, Inc.		253,996		3,408,626
Allegheny Technologies, Inc.		20,092		682,927
American Vanguard Corp.		3,000		32,730
Ampco-Pittsburgh Corp.		4,500		71,955
AptarGroup, Inc.		10,900		676,563
Ashland, Inc.		11,923		1,506,590
Avery Dennison Corp.		16,000		889,440
Axalta Coating Systems Ltd. *		19,800		607,464
Axiall Corp.		15,400		628,320
Balchem Corp.		4,200		220,164
Ball Corp.		29,000		2,128,890
Bemis Co., Inc.		16,700		751,500
Berry Plastics Group, Inc. *		24,600		841,812
Boise Cascade Co. *		5,500		190,850
Cabot Corp.		10,900		465,866
Calgon Carbon Corp.		12,500		277,375
Carpenter Technology Corp.		8,300		358,975
Celanese Corp., Series A		26,500		1,758,540
Century Aluminum Co. *		11,600		149,524
CF Industries Holdings, Inc.		9,500		2,730,965
Chase Corp.		200		7,162
Chemtura Corp. *		14,000		421,820
Clearwater Paper Corp. *		5,472		350,044
Cliffs Natural Resources, Inc. (c)		21,100		125,334
Codexis, Inc. *		1,870		8,191
Coeur Mining, Inc. *		22,400		116,928
Commercial Metals Co.		22,800		378,480
Compass Minerals International, Inc.		7,300		644,809
Crown Holdings, Inc. *		28,000		1,519,280
Cytec Industries, Inc.		13,200		729,828
Deltic Timber Corp.		1,500		96,000
Domtar Corp.		10,500		453,810
E.I. du Pont de Nemours & Co.		173,307		12,686,072
Eagle Materials, Inc.		11,543		962,571
Eastman Chemical Co.		28,980		2,208,856
Ecolab, Inc.		50,704		5,677,834
Ferro Corp. *		21,000		283,290
Flotek Industries, Inc. *		13,300		190,057
FMC Corp.		23,300		1,381,923
Freeport-McMoRan, Inc.		207,618		4,831,271
FutureFuel Corp.		8,300		90,221
General Moly, Inc. *		15,700		12,419
Globe Specialty Metals, Inc.		15,900		316,728

48 See financial notes

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Graphic Packaging Holding Co.		52,900		745,890
Greif, Inc., Class A		11,300		460,588
H.B. Fuller Co.		9,000		375,930
Hawkins, Inc.		2,700		106,515
Haynes International, Inc.		2,500		111,175
Headwaters, Inc. *		12,000		210,960
Hecla Mining Co.		72,100		217,742
Horsehead Holding Corp. *		12,800		191,360
Huntsman Corp.		34,000		783,700
Innophos Holdings, Inc.		5,300		280,052
Innospec, Inc.		4,200		183,540
International Flavors & Fragrances, Inc.		18,100		2,076,975
International Paper Co.		85,480		4,591,986
Intrepid Potash, Inc. *		11,800		147,854
Kaiser Aluminum Corp.		3,600		289,332
KapStone Paper & Packaging Corp.		15,800		441,610
KMG Chemicals, Inc.		1,600		46,848
Koppers Holdings, Inc.		4,800		107,904
Kraton Performance Polymers, Inc. *		3,500		78,890
Kronos Worldwide, Inc.		11,720		157,634
Louisiana-Pacific Corp. *		32,900		501,396
LSB Industries, Inc. *		3,000		127,230
LyondellBasell Industries N.V., Class A		80,132		8,295,265
Martin Marietta Materials, Inc.		11,400		1,626,210
Materion Corp.		4,000		159,960
McEwen Mining, Inc. *(c)		31,130		31,130
MeadWestvaco Corp.		33,774		1,648,171
Minerals Technologies, Inc.		6,200		419,926
Molycorp, Inc. *(c)		51,800		47,801
Monsanto Co.		92,626		10,555,659
Myers Industries, Inc.		8,080		130,654
Neenah Paper, Inc.		4,231		255,849
NewMarket Corp.		1,900		849,110
Newmont Mining Corp.		99,474		2,635,066
Noranda Aluminum Holding Corp.		16,500		55,110
Nucor Corp.		62,400		3,048,864
Olin Corp.		15,820		467,165
Olympic Steel, Inc.		1,400		15,330
OM Group, Inc.		7,600		228,304
OMNOVA Solutions, Inc. *		10,400		83,096
Owens-Illinois, Inc. *		33,600		803,376
P.H. Glatfelter Co.		7,000		173,600
Packaging Corp. of America		20,100		1,390,719
Platform Specialty Products Corp. *		24,500		660,030
PolyOne Corp.		14,810		578,330
PPG Industries, Inc.		26,400		5,849,184
Praxair, Inc.		54,900		6,693,957
Quaker Chemical Corp.		3,200		266,304
Rayonier Advanced Materials, Inc.		6,960		116,302
Reliance Steel & Aluminum Co.		13,300		860,776
Rentech, Inc. *		37,400		44,880
Resolute Forest Products, Inc. *		14,000		215,880
Rock-Tenn Co., Class A		25,626		1,613,925
Royal Gold, Inc.		11,400		735,642
RPM International, Inc.		24,600		1,169,484
RTI International Metals, Inc. *		7,700		289,905
Schnitzer Steel Industries, Inc., Class A		3,450		60,099
Schweitzer-Mauduit International, Inc.		4,600		203,366
Sealed Air Corp.		37,300		1,700,880
Sensient Technologies Corp.		7,400		483,664
Sigma-Aldrich Corp.		24,500		3,403,540
Silgan Holdings, Inc.		6,900		371,703
Sonoco Products Co.		16,800		750,792
Steel Dynamics, Inc.		39,300		869,709
Stepan Co.		4,300		218,999
Stillwater Mining Co. *		24,633		330,821
SunCoke Energy, Inc.		15,217		266,754
The Dow Chemical Co.		213,951		10,911,501
The Mosaic Co.		59,512		2,618,528
The Scotts Miracle-Gro Co., Class A		7,300		470,923
The Sherwin-Williams Co.		15,601		4,337,078
The Valspar Corp.		13,300		1,078,630
TimkenSteel Corp.		6,550		191,194
Tredegar Corp.		5,100		104,397
Tronox Ltd., Class A		9,800		205,310
United States Steel Corp.		26,300		631,726
Universal Stainless & Alloy Products, Inc. *		1,800		37,800
Valhi, Inc.		13,600		88,808
Vulcan Materials Co.		26,192		2,239,940
W.R. Grace & Co. *		13,600		1,315,392
Walter Energy, Inc.		15,800		8,015
Wausau Paper Corp.		8,700		81,084
Westlake Chemical Corp.		7,500		584,850
Worthington Industries, Inc.		7,200		194,616
Zep, Inc.		6,600		131,208
				158,650,115
Media 3.5%
A. H. Belo Corp., Class A		13,980		93,526
AMC Networks, Inc., Class A *		10,400		784,576
Cablevision Systems Corp., Class A		43,900		877,122
Carmike Cinemas, Inc. *		6,300		190,134
CBS Corp., Class B - Non Voting Shares		91,190		5,665,635
Central European Media Enterprises Ltd., Class A *		9,900		27,225
Charter Communications, Inc., Class A *		15,800		2,955,548
Cinemark Holdings, Inc.		19,600		835,548
Clear Channel Outdoor Holdings, Inc., Class A		20,700		235,566
Comcast Corp., Class A		490,960		28,357,850
Crown Media Holdings, Inc., Class A *		6,000		22,500
Cumulus Media, Inc., Class A *		25,351		57,800
DIRECTV *		98,072		8,895,621
Discovery Communications, Inc., Class A *		26,061		843,334
Discovery Communications, Inc., Class C *		57,261		1,731,000
DISH Network Corp., Class A *		39,400		2,665,804

See financial notes 49

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
DreamWorks Animation SKG, Inc., Class A *(c)		10,200		265,812
Entercom Communications Corp., Class A *		11,000		130,680
Gannett Co., Inc.		39,000		1,338,480
Global Eagle Entertainment, Inc. *		17,114		218,546
Harte-Hanks, Inc.		17,200		116,788
John Wiley & Sons, Inc., Class A		9,000		511,920
Journal Media Group, Inc. *		5,745		53,371
Liberty Broadband Corp., Class A *		4,373		237,192
Liberty Broadband Corp., Class C *		17,496		949,333
Liberty Global plc, Class A *		49,975		2,605,696
Liberty Global plc, Series C *		114,175		5,760,129
Liberty Media Corp., Class A *		17,495		671,458
Liberty Media Corp., Class C *		48,590		1,843,991
Lions Gate Entertainment Corp.		14,200		440,342
Live Nation Entertainment, Inc. *		26,457		663,012
Loral Space & Communications, Inc. *		2,800		193,200
Martha Stewart Living Omnimedia, Inc., Class A *		26,100		143,550
Media General, Inc. *		18,400		310,776
Meredith Corp.		5,100		265,404
Morningstar, Inc.		5,500		417,395
National CineMedia, Inc.		13,200		201,168
New Media Investment Group, Inc.		11,500		265,995
News Corp., Class A *		104,687		1,651,961
Nexstar Broadcasting Group, Inc., Class A		4,500		263,070
Omnicom Group, Inc.		45,800		3,469,808
Regal Entertainment Group, Class A		12,100		266,200
Rentrak Corp. *		3,000		142,200
Salem Media Group, Inc.		5,700		27,816
Scholastic Corp.		7,300		296,672
Scripps Networks Interactive, Inc., Class A		19,200		1,341,312
Sinclair Broadcast Group, Inc., Class A		11,000		337,040
Sirius XM Holdings, Inc. *		485,300		1,916,935
Sizmek, Inc. *		8,300		57,768
Starz, Class A *		16,195		636,949
The E.W. Scripps Co., Class A		18,547		431,960
The Interpublic Group of Cos., Inc.		73,037		1,522,091
The Madison Square Garden Co., Class A *		10,175		817,053
The New York Times Co., Class A		40,200		538,278
The Walt Disney Co.		301,939		32,826,808
Time Warner Cable, Inc.		54,137		8,419,386
Time Warner, Inc.		158,957		13,417,560
Time, Inc.		19,122		436,555
Tribune Media Co., Class A		18,500		1,037,295
Twenty-First Century Fox, Inc., Class A		351,678		11,985,186
Viacom, Inc., Class B		68,922		4,786,633
World Wrestling Entertainment, Inc., Class A (c)		5,700		76,494
				158,546,057
Pharmaceuticals, Biotechnology & Life Sciences 9.1%
AbbVie, Inc.		311,030		20,111,200
ACADIA Pharmaceuticals, Inc. *		16,600		567,222
Accelerate Diagnostics, Inc. *(c)		5,300		120,840
Achillion Pharmaceuticals, Inc. *		19,800		173,250
Acorda Therapeutics, Inc. *		8,400		252,588
Actavis plc *		75,287		21,295,681
Acura Pharmaceuticals, Inc. *		20,900		16,093
Aegerion Pharmaceuticals, Inc. *		3,800		88,388
Affymetrix, Inc. *		25,500		309,315
Agilent Technologies, Inc.		62,917		2,602,876
Agios Pharmaceuticals, Inc. *		2,200		203,148
Akorn, Inc. *		15,400		641,256
Albany Molecular Research, Inc. *		8,800		158,928
Alexion Pharmaceuticals, Inc. *		40,802		6,904,922
Alkermes plc *		28,600		1,583,582
Alnylam Pharmaceuticals, Inc. *		13,500		1,375,245
AMAG Pharmaceuticals, Inc. *		6,600		336,402
Amgen, Inc.		146,189		23,084,705
Amicus Therapeutics, Inc. *		13,800		138,828
Anacor Pharmaceuticals, Inc. *		9,800		516,362
Aratana Therapeutics, Inc. *		10,100		130,391
Arena Pharmaceuticals, Inc. *		32,100		139,956
ARIAD Pharmaceuticals, Inc. *(c)		57,200		495,924
ArQule, Inc. *		21,000		43,050
Array BioPharma, Inc. *		62,184		388,650
Arrowhead Research Corp. *(c)		10,700		73,830
Auspex Pharmaceuticals, Inc. *		4,700		474,183
AVEO Pharmaceuticals, Inc. *		15,100		22,952
Bio-Rad Laboratories, Inc., Class A *		3,000		403,350
Bio-Techne Corp.		5,800		556,568
BioCryst Pharmaceuticals, Inc. *		23,900		222,031
BioDelivery Sciences International, Inc. *		14,119		113,799
Biogen, Inc. *		45,412		16,980,909
BioMarin Pharmaceutical, Inc. *		31,000		3,473,550
Biota Pharmaceuticals, Inc. *		26,016		59,056
Bluebird Bio, Inc. *		6,000		799,140
Bristol-Myers Squibb Co.		319,753		20,377,859
Bruker Corp. *		18,000		341,280
Cambrex Corp. *		7,200		277,128
Catalent, Inc. *		18,000		517,860
Celgene Corp. *		155,062		16,756,000
Celldex Therapeutics, Inc. *		25,800		619,200
Cempra, Inc. *		7,500		236,175
Cepheid *		11,200		628,320
Charles River Laboratories International, Inc. *		7,416		512,891
Chimerix, Inc. *		7,200		244,800
Clovis Oncology, Inc. *		8,400		675,024
Depomed, Inc. *		14,500		337,270
Durect Corp. *		14,500		28,565
Dyax Corp. *		31,000		741,210
Dynavax Technologies Corp. *(c)		10,950		220,259
Eli Lilly & Co.		192,289		13,819,810
Emergent Biosolutions, Inc. *		10,400		308,776
Endo International plc *		33,350		2,803,568
Endocyte, Inc. *		11,300		65,540
Enzo Biochem, Inc. *		43,981		123,147
Enzon Pharmaceuticals, Inc.		21,300		28,755
EPIRUS Biopharmaceuticals, Inc. *		843		5,345
Exact Sciences Corp. *(c)		16,300		340,670
Exelixis, Inc. *(c)		44,700		114,879

50 See financial notes

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Fluidigm Corp. *		6,000		224,760
Foundation Medicine, Inc. *(c)		6,500		295,815
Genomic Health, Inc. *		8,400		227,388
Geron Corp. *		46,200		167,244
Gilead Sciences, Inc. *		288,692		29,016,433
GTx, Inc. *(c)		15,900		11,607
Halozyme Therapeutics, Inc. *		28,000		416,360
Harvard Apparatus Regenerative Technology, Inc. *		4,825		13,028
Harvard Bioscience, Inc. *		19,300		107,115
Horizon Pharma plc *		10,700		300,884
Hospira, Inc. *		32,870		2,869,222
Illumina, Inc. *		27,500		5,066,875
ImmunoGen, Inc. *		16,900		139,763
Immunomedics, Inc. *(c)		64,448		232,013
Impax Laboratories, Inc. *		13,800		624,588
Incyte Corp. *		32,200		3,128,552
Infinity Pharmaceuticals, Inc. *		19,600		248,332
Inovio Pharmaceuticals, Inc. *(c)		20,194		164,783
Intercept Pharmaceuticals, Inc. *		2,700		682,587
Intrexon Corp. *		8,700		337,821
Ironwood Pharmaceuticals, Inc. *		19,800		270,468
Isis Pharmaceuticals, Inc. *		22,900		1,298,888
Jazz Pharmaceuticals plc *		11,400		2,037,180
Johnson & Johnson		537,909		53,360,573
Keryx Biopharmaceuticals, Inc. *(c)		24,800		264,368
Kite Pharma, Inc. *(c)		2,900		146,102
KYTHERA Biopharmaceuticals, Inc. *		5,319		232,387
Lannett Co., Inc. *		8,800		506,000
Lexicon Pharmaceuticals, Inc. *(c)		127,500		127,500
Ligand Pharmaceuticals, Inc. *		4,948		384,163
Luminex Corp. *		12,900		200,208
MacroGenics, Inc. *		7,500		214,575
Mallinckrodt plc *		21,702		2,456,232
MannKind Corp. *(c)		40,800		175,032
Medivation, Inc. *		15,200		1,835,248
Merck & Co., Inc.		549,716		32,741,085
Merrimack Pharmaceuticals, Inc. *		38,590		428,349
Mettler-Toledo International, Inc. *		5,900		1,870,359
MiMedx Group, Inc. *		26,820		252,108
Momenta Pharmaceuticals, Inc. *		13,500		235,575
Mylan N.V. *		80,100		5,788,026
Myriad Genetics, Inc. *(c)		11,100		366,633
Nektar Therapeutics *		18,300		174,216
Neurocrine Biosciences, Inc. *		21,600		736,344
NewLink Genetics Corp. *		4,700		209,620
Novavax, Inc. *		52,500		405,825
Omeros Corp. *(c)		8,800		177,056
Oncothyreon, Inc. *		25,700		38,550
OPKO Health, Inc. *(c)		33,700		463,712
Orexigen Therapeutics, Inc. *		32,750		215,167
OvaScience, Inc. *(c)		4,900		121,251
Pacira Pharmaceuticals, Inc. *		6,500		445,120
Pain Therapeutics, Inc. *		18,600		37,944
PAREXEL International Corp. *		9,300		591,247
PDL BioPharma, Inc.		28,700		191,429
PerkinElmer, Inc.		18,577		952,257
Perrigo Co., plc		27,700		5,076,856
Pfizer, Inc.		1,193,425		40,492,910
Pharmacyclics, Inc. *		12,000		3,074,400
Portola Pharmaceuticals, Inc. *		22,300		795,887
POZEN, Inc. *		16,100		125,902
Prestige Brands Holdings, Inc. *		8,500		333,625
Prothena Corp. plc *		8,919		289,065
PTC Therapeutics, Inc. *		5,885		345,744
Puma Biotechnology, Inc. *		4,800		866,784
Quintiles Transnational Holdings, Inc. *		11,800		777,384
Raptor Pharmaceutical Corp. *		29,942		303,013
Receptos, Inc. *		5,500		810,370
Regeneron Pharmaceuticals, Inc. *		14,400		6,587,424
Relypsa, Inc. *		7,400		214,082
Repligen Corp. *		9,886		291,736
Rigel Pharmaceuticals, Inc. *		48,200		205,332
Sagent Pharmaceuticals, Inc. *		9,800		228,438
Sangamo BioSciences, Inc. *		14,600		180,602
Sarepta Therapeutics, Inc. *(c)		9,800		119,560
Seattle Genetics, Inc. *		17,900		614,686
Sequenom, Inc. *(c)		87,600		388,944
Spectrum Pharmaceuticals, Inc. *		24,200		136,730
Sucampo Pharmaceuticals, Inc., Class A *		12,400		220,224
Synageva BioPharma Corp. *		4,100		377,036
Synta Pharmaceuticals Corp. *		43,900		98,775
TESARO, Inc. *		6,195		337,442
Tetraphase Pharmaceuticals, Inc. *		5,600		197,568
The Medicines Co. *		10,600		271,466
TherapeuticsMD, Inc. *		35,777		231,835
Theravance Biopharma, Inc. *(c)		3,914		62,624
Theravance, Inc. (c)		13,700		222,625
Thermo Fisher Scientific, Inc.		77,302		9,715,315
Ultragenyx Pharmaceutical, Inc. *		6,000		338,580
United Therapeutics Corp. *		9,100		1,453,179
Vanda Pharmaceuticals, Inc. *(c)		13,953		127,670
Vertex Pharmaceuticals, Inc. *		45,844		5,651,648
Vical, Inc. *		34,400		32,680
VIVUS, Inc. *(c)		23,400		52,182
Waters Corp. *		16,100		2,015,559
XenoPort, Inc. *		37,200		220,596
ZIOPHARM Oncology, Inc. *(c)		55,300		487,193
Zoetis, Inc.		94,679		4,205,641
				407,787,780
Real Estate 4.0%
Acadia Realty Trust		23,300		719,970
AG Mortgage Investment Trust, Inc.		12,000		230,640
Agree Realty Corp.		5,000		153,900
Alexander & Baldwin, Inc.		6,400		259,072
Alexander’s, Inc.		800		344,976
Alexandria Real Estate Equities, Inc.		11,800		1,090,084
Altisource Portfolio Solutions S.A. *(c)		2,800		67,900
Altisource Residential Corp.		10,789		206,609
American Assets Trust, Inc.		8,000		318,400
American Campus Communities, Inc.		29,900		1,200,186
American Capital Agency Corp.		72,900		1,504,292
American Capital Mortgage Investment Corp.		14,600		256,084
American Homes 4 Rent, Class A		24,300		410,427

See financial notes 51

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
American Realty Capital Properties, Inc.		178,200		1,609,146
American Realty Investors, Inc. *		1,537		7,454
American Tower Corp.		82,944		7,840,696
Annaly Capital Management, Inc.		200,600		2,020,042
Anworth Mortgage Asset Corp.		24,200		122,936
Apartment Investment & Management Co., Class A		39,211		1,479,431
Apollo Commercial Real Estate Finance, Inc.		11,400		194,826
Apollo Residential Mortgage, Inc.		12,900		204,594
ARMOUR Residential REIT, Inc.		61,000		183,000
Ashford Hospitality Prime, Inc.		1,800		28,188
Ashford Hospitality Trust, Inc.		9,000		81,540
Associated Estates Realty Corp.		6,900		196,650
AV Homes, Inc. *		6,500		102,570
AvalonBay Communities, Inc.		23,919		3,930,848
BioMed Realty Trust, Inc.		31,700		657,775
Blackstone Mortgage Trust, Inc., Class A		18,102		556,274
Boston Properties, Inc.		28,600		3,784,066
Brandywine Realty Trust		62,663		913,627
Brixmor Property Group, Inc.		31,600		741,020
Camden Property Trust		17,500		1,313,900
Campus Crest Communities, Inc.		17,900		113,307
Capstead Mortgage Corp.		21,740		253,271
CareTrust REIT, Inc.		7,131		89,066
CBL & Associates Properties, Inc.		26,785		482,398
CBRE Group, Inc., Class A *		57,000		2,185,380
Cedar Realty Trust, Inc.		33,200		232,068
Chambers Street Properties		37,300		279,750
Chatham Lodging Trust		8,234		227,588
Chesapeake Lodging Trust		8,500		269,875
Chimera Investment Corp.		33,940		515,549
CIM Commercial Trust Corp.		9,700		188,665
Colony Capital, Inc., Class A		19,300		500,063
Columbia Property Trust, Inc.		20,200		529,846
Communications Sales & Leasing, Inc. *		21,853		657,338
Consolidated-Tomoka Land Co.		2,000		109,480
CoreSite Realty Corp.		3,400		163,472
Corporate Office Properties Trust		14,400		380,016
Corrections Corp. of America		20,285		746,285
Cousins Properties, Inc.		53,345		519,580
Crown Castle International Corp.		65,323		5,456,430
CubeSmart		41,400		955,098
CYS Investments, Inc.		25,500		227,460
DCT Industrial Trust, Inc.		15,900		525,336
DDR Corp.		54,584		930,657
DiamondRock Hospitality Co.		59,386		805,274
Digital Realty Trust, Inc.		23,800		1,509,158
Douglas Emmett, Inc.		24,948		711,018
Duke Realty Corp.		59,590		1,180,478
DuPont Fabros Technology, Inc.		9,200		286,580
Dynex Capital, Inc.		21,998		175,984
EastGroup Properties, Inc.		6,300		360,360
Education Realty Trust, Inc.		9,166		308,161
Empire State Realty Trust, Inc., Class A		22,502		405,036
EPR Properties		9,600		553,632
Equity Commonwealth *		23,450		591,175
Equity LifeStyle Properties, Inc.		20,700		1,093,374
Equity One, Inc.		12,100		298,023
Equity Residential		67,500		4,985,550
Essex Property Trust, Inc.		11,989		2,660,959
Excel Trust, Inc.		14,000		221,900
Extra Space Storage, Inc.		23,200		1,529,576
Federal Realty Investment Trust		15,200		2,031,784
FelCor Lodging Trust, Inc.		28,000		311,080
First Industrial Realty Trust, Inc.		15,900		313,707
First Potomac Realty Trust		14,800		158,656
Forest City Enterprises, Inc., Class A *		33,700		800,712
Forestar Group, Inc. *		4,933		72,811
Franklin Street Properties Corp.		22,500		265,725
Gaming & Leisure Properties, Inc.		21,618		771,763
General Growth Properties, Inc.		117,309		3,214,267
Getty Realty Corp.		9,500		165,015
Government Properties Income Trust		9,900		206,316
Gramercy Property Trust, Inc.		6,807		186,103
Griffin Land & Nurseries, Inc.		300		9,390
Hatteras Financial Corp.		13,800		249,228
HCP, Inc.		89,348		3,599,831
Health Care REIT, Inc.		71,958		5,182,415
Healthcare Realty Trust, Inc.		15,800		404,480
Healthcare Trust of America, Inc., Class A		21,000		543,690
Hersha Hospitality Trust		40,000		257,200
Highwoods Properties, Inc.		17,261		742,913
Home Properties, Inc.		9,500		698,820
Hospitality Properties Trust		24,500		736,960
Host Hotels & Resorts, Inc.		146,663		2,953,793
Hudson Pacific Properties, Inc.		9,100		274,456
Inland Real Estate Corp.		20,300		208,887
Invesco Mortgage Capital, Inc.		22,300		343,420
Investors Real Estate Trust		28,600		205,062
Iron Mountain, Inc.		36,173		1,247,607
iStar Financial, Inc. *		13,390		181,301
Jones Lang LaSalle, Inc.		9,300		1,544,358
Kennedy-Wilson Holdings, Inc.		12,200		302,316
Kilroy Realty Corp.		15,400		1,093,246
Kimco Realty Corp.		74,295		1,790,510
Kite Realty Group Trust		15,825		414,615
Lamar Advertising Co., Class A		16,100		933,156
LaSalle Hotel Properties		19,700		722,793
Lexington Realty Trust		33,567		311,166
Liberty Property Trust		33,100		1,153,204
LTC Properties, Inc.		8,700		378,102
Mack-Cali Realty Corp.		18,500		332,075
Maui Land & Pineapple Co., Inc. *		800		4,536
Medical Properties Trust, Inc.		65,300		912,894
MFA Financial, Inc.		60,500		470,085
Mid-America Apartment Communities, Inc.		12,844		958,291
Monmouth Real Estate Investment Corp.		18,100		186,973
Monogram Residential Trust, Inc.		55,400		522,976
National Health Investors, Inc.		5,900		393,648
National Retail Properties, Inc.		29,220		1,122,048
New Century Financial Corp. *(b)(e)		3,600		—
New Residential Investment Corp.		21,350		363,804
New Senior Investment Group, Inc.		20,583		332,621

52 See financial notes

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
New York Mortgage Trust, Inc. (c)		18,600		145,266
New York REIT, Inc.		28,100		277,628
Newcastle Investment Corp.		20,583		109,707
NorthStar Realty Finance Corp.		45,075		845,607
Omega Healthcare Investors, Inc.		32,494		1,172,708
One Liberty Properties, Inc.		1,400		31,472
Outfront Media, Inc.		24,003		689,366
Paramount Group, Inc.		45,900		840,888
Parkway Properties, Inc.		14,940		243,074
Pebblebrook Hotel Trust		12,300		528,162
Pennsylvania Real Estate Investment Trust		13,900		314,279
PennyMac Mortgage Investment Trust		14,400		301,680
Physicians Realty Trust		10,600		175,960
Piedmont Office Realty Trust, Inc., Class A		27,500		480,700
Plum Creek Timber Co., Inc.		37,947		1,601,363
Post Properties, Inc.		8,200		468,794
Potlatch Corp.		5,753		212,343
Preferred Apartment Communities, Inc., Class A		3,700		40,922
Prologis, Inc.		94,534		3,800,267
PS Business Parks, Inc.		3,000		229,050
Public Storage		28,097		5,279,707
RAIT Financial Trust		16,199		104,970
Ramco-Gershenson Properties Trust		22,500		393,300
Rayonier, Inc.		20,882		534,370
Realogy Holdings Corp. *		29,400		1,393,854
Realty Income Corp.		40,035		1,880,444
Redwood Trust, Inc.		19,700		338,643
Regency Centers Corp.		17,233		1,081,888
Resource Capital Corp.		28,600		126,126
Retail Opportunity Investments Corp.		14,400		241,632
Retail Properties of America, Inc., Class A		41,600		628,576
RLJ Lodging Trust		30,400		901,968
Rouse Properties, Inc.		10,715		187,191
Ryman Hospitality Properties, Inc.		7,837		451,725
Sabra Health Care REIT, Inc.		13,700		409,356
Saul Centers, Inc.		4,700		236,504
Select Income REIT		14,600		338,574
Senior Housing Properties Trust		37,819		774,155
Silver Bay Realty Trust Corp.		13,033		201,621
Simon Property Group, Inc.		59,405		10,781,413
SL Green Realty Corp.		19,566		2,394,096
Sovran Self Storage, Inc.		6,626		578,715
Spirit Realty Capital, Inc.		69,048		779,552
STAG Industrial, Inc.		11,900		258,587
Starwood Property Trust, Inc.		50,873		1,221,461
Starwood Waypoint Residential Trust		6,440		165,766
Strategic Hotels & Resorts, Inc. *		42,000		491,400
Summit Hotel Properties, Inc.		9,600		126,432
Sun Communities, Inc.		11,300		701,278
Sunstone Hotel Investors, Inc.		60,145		937,059
Tanger Factory Outlet Centers, Inc.		15,600		523,848
Taubman Centers, Inc.		10,100		727,301
Tejon Ranch Co. *		3,674		90,748
The Geo Group, Inc.		11,899		464,061
The Howard Hughes Corp. *		6,300		935,361
The Macerich Co.		27,405		2,240,633
The St. Joe Co. *		18,800		328,060
Two Harbors Investment Corp.		60,300		633,150
UDR, Inc.		50,961		1,669,992
UMH Properties, Inc.		7,900		79,553
Universal Health Realty Income Trust		4,700		233,402
Urban Edge Properties		16,046		363,121
Urstadt Biddle Properties, Inc., Class A		4,500		93,375
Ventas, Inc.		66,966		4,613,957
Vornado Realty Trust		34,092		3,528,181
Washington Real Estate Investment Trust		9,700		239,784
Weingarten Realty Investors		17,175		562,653
Western Asset Mortgage Capital Corp. (c)		4,607		67,308
Weyerhaeuser Co.		99,992		3,150,748
Whitestone REIT		2,100		30,870
WP Carey, Inc.		22,700		1,440,996
WP GLIMCHER, Inc.		33,804		507,060
Xenia Hotels & Resorts, Inc.		35,200		771,232
				177,271,141
Retailing 4.6%
Aaron’s, Inc.		14,675		498,950
Abercrombie & Fitch Co., Class A		11,800		265,264
Advance Auto Parts, Inc.		15,340		2,193,620
Aeropostale, Inc. *		25,600		79,104
Amazon.com, Inc. *		73,425		30,969,196
America’s Car-Mart, Inc. *		6,850		351,679
American Eagle Outfitters, Inc.		40,750		648,333
ANN, Inc. *		6,625		250,823
Asbury Automotive Group, Inc. *		6,500		546,195
Ascena Retail Group, Inc. *		21,236		318,328
AutoNation, Inc. *		13,800		849,390
AutoZone, Inc. *		6,600		4,439,556
Barnes & Noble, Inc. *		7,400		162,060
Bed Bath & Beyond, Inc. *		35,500		2,501,330
Best Buy Co., Inc.		55,725		1,930,871
Big Lots, Inc.		14,700		669,879
Brown Shoe Co., Inc.		6,675		198,248
Burlington Stores, Inc. *		17,000		876,690
Cabela’s, Inc. *		7,700		406,098
CarMax, Inc. *		40,246		2,741,155
Chico’s FAS, Inc.		26,200		441,732
Christopher & Banks Corp. *		13,400		79,596
Conn’s, Inc. *(c)		7,900		220,963
Core-Mark Holding Co., Inc.		4,000		210,840
CST Brands, Inc.		12,286		512,449
Destination Maternity Corp.		5,000		58,950
Dick’s Sporting Goods, Inc.		17,500		949,550
Dillard’s, Inc., Class A		4,300		565,837
Dollar General Corp.		59,625		4,335,334
Dollar Tree, Inc. *		38,650		2,953,246
DSW, Inc., Class A		11,560		419,281
Expedia, Inc.		19,472		1,834,847
Express, Inc. *		12,600		205,380
Family Dollar Stores, Inc.		18,900		1,476,846
Five Below, Inc. *		7,800		263,016

See financial notes 53

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Foot Locker, Inc.		29,900		1,777,555
Francesca’s Holdings Corp. *		13,300		225,169
Fred’s, Inc., Class A		6,700		113,029
FTD Cos., Inc. *		8,070		230,318
GameStop Corp., Class A (c)		19,348		745,672
Geeknet, Inc. *		452		4,068
Genesco, Inc. *		4,300		290,637
Genuine Parts Co.		32,800		2,947,080
GNC Holdings, Inc., Class A		15,500		667,275
Group 1 Automotive, Inc.		4,400		347,512
Groupon, Inc. *		88,400		611,728
Guess?, Inc.		7,900		144,649
Hibbett Sports, Inc. *		3,543		165,812
HSN, Inc.		6,269		391,311
J.C. Penney Co., Inc. *(c)		50,700		420,810
Kirkland’s, Inc. *		8,700		206,538
Kohl’s Corp.		39,600		2,837,340
L Brands, Inc.		47,520		4,246,387
Lands’ End, Inc. *		7,747		227,607
Liberty Interactive Corp., Class A *		89,109		2,562,775
Liberty TripAdvisor Holdings, Inc., Class A *		13,830		410,889
Liberty Ventures, Series A *		25,347		1,056,463
Lithia Motors, Inc., Class A		3,300		329,109
LKQ Corp. *		58,900		1,594,423
Lowe’s Cos., Inc.		184,351		12,694,410
Lumber Liquidators Holdings, Inc. *(c)		4,600		126,454
Macy’s, Inc.		63,863		4,127,466
MarineMax, Inc. *		16,300		359,904
Mattress Firm Holding Corp. *		3,200		189,056
Monro Muffler Brake, Inc.		4,462		267,229
Murphy USA, Inc. *		6,875		449,144
Netflix, Inc. *		11,721		6,522,736
Nordstrom, Inc.		26,300		1,987,228
O’Reilly Automotive, Inc. *		19,799		4,312,816
Office Depot, Inc. *		99,656		918,828
Orbitz Worldwide, Inc. *		22,152		259,621
Outerwall, Inc. (c)		5,000		332,150
Pacific Sunwear of California, Inc. *		41,175		86,468
Penske Automotive Group, Inc.		6,300		307,503
Pier 1 Imports, Inc.		15,800		199,870
Pool Corp.		6,662		432,297
Rent-A-Center, Inc.		7,750		229,400
Restoration Hardware Holdings, Inc. *		6,300		542,871
Ross Stores, Inc.		40,200		3,974,976
Sally Beauty Holdings, Inc. *		24,850		775,569
Sears Holdings Corp. *(c)		11,385		454,717
Select Comfort Corp. *		12,200		376,004
Shoe Carnival, Inc.		6,300		164,493
Shutterfly, Inc. *		6,300		281,988
Signet Jewelers Ltd.		16,800		2,253,384
Sonic Automotive, Inc., Class A		11,200		261,520
Stage Stores, Inc.		14,275		275,650
Staples, Inc.		118,900		1,940,448
Stein Mart, Inc.		10,300		121,849
Systemax, Inc. *		8,000		83,600
Target Corp.		121,878		9,607,643
The Buckle, Inc. (c)		3,875		173,600
The Cato Corp., Class A		7,100		279,314
The Children’s Place, Inc.		3,600		218,376
The Finish Line, Inc., Class A		7,161		175,659
The Gap, Inc.		51,800		2,053,352
The Home Depot, Inc.		254,163		27,190,358
The Men’s Wearhouse, Inc.		6,600		373,494
The Michaels Cos., Inc. *		16,000		413,760
The Pep Boys - Manny, Moe & Jack *		19,400		177,704
The Priceline Group, Inc. *		10,036		12,422,661
The TJX Cos., Inc.		133,447		8,612,669
Tiffany & Co.		22,200		1,942,056
Tractor Supply Co.		25,700		2,211,742
Trans World Entertainment Corp. *		9,700		36,472
TripAdvisor, Inc. *		22,272		1,792,673
Tuesday Morning Corp. *		10,800		170,856
Ulta Salon, Cosmetics & Fragrance, Inc. *		12,100		1,828,189
Urban Outfitters, Inc. *		18,000		720,720
Vitamin Shoppe, Inc. *		4,200		175,896
VOXX International Corp. *		9,100		86,723
West Marine, Inc. *		8,200		82,410
Williams-Sonoma, Inc.		16,200		1,191,186
Winmark Corp.		1,700		153,017
Zumiez, Inc. *		10,500		332,955
				205,711,926
Semiconductors & Semiconductor Equipment 2.4%
Advanced Energy Industries, Inc. *		4,500		110,070
Advanced Micro Devices, Inc. *		123,300		278,658
Altera Corp.		63,700		2,655,016
Amkor Technology, Inc. *		35,700		250,971
Amtech Systems, Inc. *		3,500		43,750
ANADIGICS, Inc. *(c)		8,150		10,758
Analog Devices, Inc.		60,249		3,725,798
Applied Materials, Inc.		245,798		4,864,342
Applied Micro Circuits Corp. *		21,300		114,381
Atmel Corp.		110,700		839,106
Avago Technologies Ltd.		48,800		5,703,744
AXT, Inc. *		3,500		8,330
Broadcom Corp., Class A		111,590		4,932,836
Brooks Automation, Inc.		11,885		127,883
Cabot Microelectronics Corp. *		5,660		267,718
Cavium, Inc. *		10,400		673,816
CEVA, Inc. *		7,233		149,723
Cirrus Logic, Inc. *		9,800		331,044
Cohu, Inc.		7,500		78,525
Cree, Inc. *(c)		20,900		662,112
Cypress Semiconductor Corp. *		69,226		922,090
Diodes, Inc. *		11,012		294,241
DSP Group, Inc. *		6,300		71,694
Entegris, Inc. *		19,299		256,870
Entropic Communications, Inc. *		20,100		60,702
Exar Corp. *		9,834		97,062
Fairchild Semiconductor International, Inc. *		17,800		323,337
First Solar, Inc. *		13,279		792,358
FormFactor, Inc. *		14,600		116,362
Freescale Semiconductor Ltd. *		21,400		836,526
GSI Technology, Inc. *		8,500		44,965
Integrated Device Technology, Inc. *		26,920		489,675

54 See financial notes

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Integrated Silicon Solution, Inc.		9,338		173,220
Intel Corp.		924,297		30,085,867
Intersil Corp., Class A		26,764		357,299
IXYS Corp.		6,900		78,039
KLA-Tencor Corp.		29,000		1,705,200
Kopin Corp. *		19,600		65,072
Kulicke & Soffa Industries, Inc. *		18,500		279,535
Lam Research Corp.		30,267		2,287,580
Lattice Semiconductor Corp. *		25,100		148,843
Linear Technology Corp.		41,900		1,932,847
Marvell Technology Group Ltd.		73,200		1,025,532
Maxim Integrated Products, Inc.		55,700		1,828,631
Micrel, Inc.		9,700		131,920
Microchip Technology, Inc.		42,875		2,043,208
Micron Technology, Inc. *		208,307		5,859,676
Microsemi Corp. *		28,952		965,839
MKS Instruments, Inc.		7,900		274,999
Monolithic Power Systems, Inc.		6,500		336,895
MoSys, Inc. *		6,400		14,016
Nanometrics, Inc. *		5,300		81,938
NVIDIA Corp.		97,000		2,152,915
OmniVision Technologies, Inc. *		13,900		387,741
ON Semiconductor Corp. *		75,165		865,901
PDF Solutions, Inc. *		9,699		175,261
Pericom Semiconductor Corp.		6,600		82,632
Photronics, Inc. *		18,000		157,860
PMC-Sierra, Inc. *		27,300		230,139
Power Integrations, Inc.		4,200		207,858
Qorvo, Inc. *		30,074		1,982,177
QuickLogic Corp. *(c)		27,600		48,576
Rambus, Inc. *		19,600		271,264
Rudolph Technologies, Inc. *		16,418		210,643
Semtech Corp. *		21,700		505,393
Silicon Laboratories, Inc. *		5,000		258,350
Skyworks Solutions, Inc.		35,789		3,301,535
SunEdison, Inc. *		45,700		1,157,124
SunPower Corp. *		6,800		218,892
Synaptics, Inc. *		8,450		715,884
Teradyne, Inc.		34,959		638,002
Tessera Technologies, Inc.		11,100		400,821
Texas Instruments, Inc.		205,597		11,145,413
Ultratech, Inc. *		4,800		95,808
Veeco Instruments, Inc. *		8,800		259,688
Xcerra Corp. *		19,192		188,657
Xilinx, Inc.		47,500		2,059,600
				107,528,753
Software & Services 10.3%
Accenture plc, Class A		119,697		11,089,927
ACI Worldwide, Inc. *		23,100		531,993
Activision Blizzard, Inc.		98,232		2,241,163
Actua Corp. *		8,050		116,483
Acxiom Corp. *		13,300		232,218
Adobe Systems, Inc. *		91,810		6,983,069
Advent Software, Inc.		7,900		342,939
Akamai Technologies, Inc. *		32,038		2,363,764
Alliance Data Systems Corp. *		12,644		3,759,188
Amdocs Ltd.		34,600		1,905,422
Angie’s List, Inc. *		22,248		130,596
ANSYS, Inc. *		15,286		1,312,150
AOL, Inc. *		12,922		515,588
Aspen Technology, Inc. *		15,400		683,606
Autodesk, Inc. *		44,300		2,517,569
Automatic Data Processing, Inc.		89,762		7,588,479
Bankrate, Inc. *		14,600		181,040
Bazaarvoice, Inc. *		15,200		81,776
Blackbaud, Inc.		13,400		677,102
Blackhawk Network Holdings, Inc., Class B *		6,703		246,067
Blucora, Inc. *		11,572		158,189
Booz Allen Hamilton Holding Corp.		24,800		682,000
Bottomline Technologies de, Inc. *		8,800		235,488
Broadridge Financial Solutions, Inc.		19,725		1,063,572
BroadSoft, Inc. *		6,500		205,660
CA, Inc.		69,408		2,205,092
CACI International, Inc., Class A *		4,100		361,784
Cadence Design Systems, Inc. *		47,500		885,875
Callidus Software, Inc. *		16,546		204,343
Cardtronics, Inc. *		8,800		332,024
CDK Global, Inc.		32,620		1,563,150
Ciber, Inc. *		24,900		87,897
Citrix Systems, Inc. *		30,800		2,068,528
Cognizant Technology Solutions Corp., Class A *		117,100		6,855,034
CommVault Systems, Inc. *		6,900		315,675
Computer Sciences Corp.		27,638		1,781,269
comScore, Inc. *		7,500		392,700
Comverse, Inc. *		6,250		153,125
Constant Contact, Inc. *		7,000		243,950
Convergys Corp.		16,000		362,880
CoreLogic, Inc. *		23,100		903,441
Cornerstone OnDemand, Inc. *		7,100		203,273
CoStar Group, Inc. *		5,500		1,124,365
Covisint Corp. *		4,460		8,742
CSG Systems International, Inc.		8,900		259,168
Dealertrack Technologies, Inc. *		6,100		239,791
Demand Media, Inc. *		5,920		37,947
Demandware, Inc. *		6,800		418,880
Digimarc Corp.		3,542		82,883
DST Systems, Inc.		5,900		678,972
EarthLink Holdings Corp.		17,050		80,646
eBay, Inc. *		215,744		12,569,245
Ebix, Inc. (c)		17,503		477,657
Edgewater Technology, Inc. *		767		5,407
Electronic Arts, Inc. *		62,500		3,630,625
Ellie Mae, Inc. *		11,293		621,115
Endurance International Group Holdings, Inc. *(c)		13,300		243,922
EnerNOC, Inc. *		9,754		107,782
Envestnet, Inc. *		7,300		374,198
EPAM Systems, Inc. *		7,800		504,738
Epiq Systems, Inc.		8,525		152,683
Equinix, Inc.		10,686		2,734,868
Euronet Worldwide, Inc. *		8,800		514,624
EVERTEC, Inc.		14,000		290,220
ExlService Holdings, Inc. *		7,200		247,896
Facebook, Inc., Class A *		406,707		32,036,310
FactSet Research Systems, Inc.		6,650		1,046,643
Fair Isaac Corp.		4,744		419,654
FalconStor Software, Inc. *		1,200		1,824

See financial notes 55

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Fidelity National Information Services, Inc.		51,091		3,192,677
FireEye, Inc. *		9,700		400,610
Fiserv, Inc. *		42,600		3,305,760
FleetCor Technologies, Inc. *		14,800		2,381,172
Forrester Research, Inc.		6,800		236,572
Fortinet, Inc. *		26,700		1,007,658
Gartner, Inc. *		18,100		1,501,938
Genpact Ltd. *		28,274		618,070
Global Cash Access Holdings, Inc. *		28,300		209,420
Global Payments, Inc.		11,440		1,147,203
Glu Mobile, Inc. *		38,900		262,964
Gogo, Inc. *		16,000		338,240
Google, Inc., Class A *		55,476		30,443,565
Google, Inc., Class C *		55,227		29,675,775
GSE Systems, Inc. *		2,424		3,636
Guidewire Software, Inc. *		10,800		539,460
Heartland Payment Systems, Inc.		7,700		391,930
Higher One Holdings, Inc. *		19,400		54,514
HomeAway, Inc. *		15,400		430,430
IAC/InterActiveCorp		12,672		884,759
IGATE Corp. *		8,800		418,528
Imperva, Inc. *		11,562		527,458
Infoblox, Inc. *		8,600		202,616
Informatica Corp. *		18,000		865,260
Information Services Group, Inc.		7,500		29,475
Interactive Intelligence Group, Inc. *		2,900		127,542
Internap Corp. *		13,200		124,080
International Business Machines Corp.		178,451		30,566,872
Intralinks Holdings, Inc. *		12,200		119,560
Intuit, Inc.		54,530		5,470,995
j2 Global, Inc.		9,000		624,330
Jack Henry & Associates, Inc.		13,800		917,838
Jive Software, Inc. *		27,994		150,608
Leidos Holdings, Inc.		11,000		458,040
LinkedIn Corp., Class A *		20,200		5,093,026
Lionbridge Technologies, Inc. *		19,500		108,225
Liquidity Services, Inc. *		15,481		144,902
LivePerson, Inc. *		19,700		185,180
LogMeIn, Inc. *		7,600		487,768
Looksmart Ltd. *(c)		160		210
Manhattan Associates, Inc. *		11,600		609,696
ManTech International Corp., Class A		8,600		251,378
Marketo, Inc. *		6,684		190,160
MasterCard, Inc., Class A		189,856		17,126,910
Mattersight Corp. *		190		1,300
MAXIMUS, Inc.		11,300		723,313
Mentor Graphics Corp.		13,800		330,234
Microsoft Corp.		1,588,918		77,284,972
MicroStrategy, Inc., Class A *		2,256		410,863
Millennial Media, Inc. *		21,300		33,015
ModusLink Global Solutions, Inc. *		10,450		36,575
MoneyGram International, Inc. *		9,037		70,037
Monotype Imaging Holdings, Inc.		6,500		210,665
Monster Worldwide, Inc. *		35,800		210,862
NetScout Systems, Inc. *		7,300		300,030
NetSuite, Inc. *		7,900		755,003
NeuStar, Inc., Class A *(c)		9,300		279,000
NIC, Inc.		8,000		136,000
Nuance Communications, Inc. *		42,274		648,060
Oracle Corp.		616,713		26,901,021
Pandora Media, Inc. *		38,400		685,056
Paychex, Inc.		61,864		2,993,599
Pegasystems, Inc.		12,800		275,712
Perficient, Inc. *		7,800		160,914
PRGX Global, Inc. *		11,000		46,640
Progress Software Corp. *		9,300		245,520
Proofpoint, Inc. *		9,000		485,820
PROS Holdings, Inc. *		7,826		173,972
PTC, Inc. *		19,780		758,365
Qlik Technologies, Inc. *		14,100		490,539
Qualys, Inc. *		5,600		277,312
Rackspace Hosting, Inc. *		23,700		1,277,430
RealNetworks, Inc. *		12,725		83,603
RealPage, Inc. *		10,500		208,320
Red Hat, Inc. *		36,600		2,754,516
Reis, Inc.		1,400		31,822
Rightside Group Ltd. *		5,920		48,189
Rovi Corp. *		15,412		285,276
Sabre Corp.		20,500		510,245
Salesforce.com, Inc. *		120,222		8,754,566
Science Applications International Corp.		6,285		314,878
Seachange International, Inc. *		9,250		62,068
ServiceNow, Inc. *		27,100		2,028,706
ServiceSource International, Inc. *		14,400		51,408
Shutterstock, Inc. *		4,000		269,960
SolarWinds, Inc. *		12,000		585,360
Solera Holdings, Inc.		11,400		553,128
Splunk, Inc. *		27,000		1,791,315
SPS Commerce, Inc. *		9,300		606,918
SS&C Technologies Holdings, Inc.		11,700		703,989
Stamps.com, Inc. *		5,827		360,633
StarTek, Inc. *		3,900		32,195
support.com, Inc. *		18,400		29,072
Sykes Enterprises, Inc. *		11,026		275,981
Symantec Corp.		139,573		3,478,857
Synchronoss Technologies, Inc. *		8,100		371,628
Synopsys, Inc. *		28,084		1,316,578
Syntel, Inc. *		8,600		387,172
Tableau Software, Inc., Class A *		8,442		825,965
Take-Two Interactive Software, Inc. *		12,900		305,730
Tangoe, Inc. *		8,200		112,176
TeleCommunication Systems, Inc., Class A *		10,800		33,696
TeleTech Holdings, Inc.		9,100		236,054
Teradata Corp. *		27,000		1,187,730
Textura, Corp. *(c)		6,941		181,646
The Hackett Group, Inc.		7,200		69,120
The Ultimate Software Group, Inc. *		4,600		764,612
The Western Union Co.		90,332		1,831,933
TiVo, Inc. *		17,800		196,690
Total System Services, Inc.		27,404		1,084,102
Twitter, Inc. *		99,300		3,868,728
Tyler Technologies, Inc. *		6,800		829,260
Unisys Corp. *		6,200		134,974
United Online, Inc. *		2,478		39,227
Unwired Planet, Inc. *		7,771		4,587

56 See financial notes

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Vantiv, Inc., Class A *		24,900		973,590
VeriFone Systems, Inc. *		18,000		643,860
Verint Systems, Inc. *		9,510		584,199
VeriSign, Inc. *		22,275		1,414,685
VirnetX Holding Corp. *(c)		10,600		68,476
Virtusa Corp. *		4,700		187,060
Visa, Inc., Class A		375,804		24,821,854
VMware, Inc., Class A *		17,100		1,506,510
Web.com Group, Inc. *		8,923		163,916
WebMD Health Corp. *		7,074		312,317
WEX, Inc. *		6,400		721,344
Workday, Inc., Class A *		20,100		1,833,321
Xerox Corp.		214,156		2,462,794
Yahoo! Inc. *		169,444		7,212,384
Yelp, Inc. *		14,300		563,277
Zillow Group, Inc., Class A *(c)		8,797		858,939
Zynga, Inc., Class A *		127,000		311,150
				463,947,021
Technology Hardware & Equipment 6.3%
3D Systems Corp. *(c)		18,800		471,692
ADTRAN, Inc.		9,100		151,151
Agilysys, Inc. *		8,460		79,609
Amphenol Corp., Class A		60,800		3,366,496
Anixter International, Inc. *		4,000		282,400
Apple, Inc.		1,126,662		141,001,749
ARRIS Group, Inc. *		24,075		810,726
Arrow Electronics, Inc. *		18,532		1,106,546
Aruba Networks, Inc. *		24,800		610,328
Aviat Networks, Inc. *		18,877		21,520
Avnet, Inc.		26,588		1,133,446
AVX Corp.		14,000		192,780
Badger Meter, Inc.		4,000		248,880
Belden, Inc.		6,900		579,255
Benchmark Electronics, Inc. *		7,830		184,240
Black Box Corp.		4,100		81,590
Brocade Communications Systems, Inc.		73,835		834,335
CalAmp Corp. *		4,000		78,840
CDW Corp.		24,400		935,008
Checkpoint Systems, Inc.		7,100		73,556
Ciena Corp. *		17,970		382,761
Cisco Systems, Inc.		998,840		28,796,557
Cognex Corp. *		14,800		664,372
Coherent, Inc. *		4,100		246,000
CommScope Holding Co., Inc. *		20,082		592,620
Comtech Telecommunications Corp.		4,175		120,657
Corning, Inc.		239,007		5,002,416
Cray, Inc. *		7,600		213,484
CTS Corp.		8,800		157,872
Daktronics, Inc.		8,700		93,351
Diebold, Inc.		12,900		448,533
Digi International, Inc. *		9,100		91,910
Dolby Laboratories, Inc., Class A		8,800		354,288
DTS, Inc. *		4,300		154,155
Echelon Corp. *		7,200		6,480
EchoStar Corp., Class A *		6,740		337,000
Electro Rent Corp.		7,100		76,964
Electro Scientific Industries, Inc.		9,900		56,430
Electronics for Imaging, Inc. *		15,500		646,815
EMC Corp.		400,499		10,777,428
Emulex Corp. *		14,100		113,082
Extreme Networks, Inc. *		27,500		69,300
F5 Networks, Inc. *		13,100		1,598,462
Fabrinet *		11,108		201,166
FARO Technologies, Inc. *		3,000		119,490
FEI Co.		10,000		754,600
Finisar Corp. *		15,800		321,214
FLIR Systems, Inc.		26,100		806,229
Frequency Electronics, Inc. *		500		6,355
Harmonic, Inc. *		20,042		140,494
Harris Corp.		19,178		1,538,843
Hewlett-Packard Co.		361,236		11,909,951
Hutchinson Technology, Inc. *		6,000		14,160
I.D. Systems, Inc. *		5,500		38,555
Identiv, Inc. *		120		1,168
II-VI, Inc. *		13,000		231,270
Imation Corp. *		5,500		22,495
Immersion Corp. *		4,300		46,569
Infinera Corp. *		27,300		513,240
Ingram Micro, Inc., Class A *		25,500		641,580
Insight Enterprises, Inc. *		8,950		256,149
Intellicheck Mobilisa, Inc. *		62		96
InterDigital, Inc.		6,700		366,624
InvenSense, Inc. *(c)		8,900		132,788
IPG Photonics Corp. *		5,700		504,906
Itron, Inc. *		5,700		204,402
Ixia *		14,900		178,502
Jabil Circuit, Inc.		35,300		794,956
JDS Uniphase Corp. *		44,553		564,041
Juniper Networks, Inc.		84,165		2,224,481
Keysight Technologies, Inc. *		31,458		1,052,585
Kimball Electronics, Inc. *		6,825		87,292
Knowles Corp. *(c)		13,900		266,463
Lexmark International, Inc., Class A		10,900		483,851
LightPath Technologies, Inc., Class A *		75		85
Littelfuse, Inc.		3,700		362,563
Maxwell Technologies, Inc. *(c)		7,700		43,120
Mercury Systems, Inc. *		7,800		107,718
Methode Electronics, Inc.		9,500		403,370
MOCON, Inc.		600		10,440
Motorola Solutions, Inc.		39,833		2,380,022
MTS Systems Corp.		3,781		266,863
Multi-Fineline Electronix, Inc. *		5,700		133,266
National Instruments Corp.		16,112		460,803
NCR Corp. *		35,100		963,144
NetApp, Inc.		55,900		2,026,375
NETGEAR, Inc. *		6,000		181,620
Newport Corp. *		8,500		162,095
OSI Systems, Inc. *		3,700		248,677
Palo Alto Networks, Inc. *		12,900		1,905,588
Park Electrochemical Corp.		3,600		78,192
PC Connection, Inc.		7,000		170,030
PC-Tel, Inc.		8,900		70,310
Plantronics, Inc.		6,000		319,620
Plexus Corp. *		6,500		279,825
Polycom, Inc. *		22,400		292,320
QLogic Corp. *		17,044		250,547
QUALCOMM, Inc.		318,639		21,667,452
Quantum Corp. *		125,000		251,250

See financial notes 57

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Radisys Corp. *		7,200		15,840
Research Frontiers, Inc. *		2,800		15,876
Richardson Electronics Ltd.		7,300		64,824
Rofin-Sinar Technologies, Inc. *		3,800		89,908
Rogers Corp. *		4,200		305,382
SanDisk Corp.		41,700		2,791,398
Sanmina Corp. *		20,900		424,897
ScanSource, Inc. *		6,300		251,055
Seagate Technology plc (c)		61,966		3,638,644
Sonus Networks, Inc. *		15,860		125,611
Super Micro Computer, Inc. *		8,200		235,914
SYNNEX Corp.		8,400		642,600
TE Connectivity Ltd.		76,700		5,104,385
Tech Data Corp. *		5,300		298,761
TESSCO Technologies, Inc.		4,025		101,712
TransAct Technologies, Inc.		1,500		7,680
Trimble Navigation Ltd. *		62,084		1,578,796
TTM Technologies, Inc. *		11,000		102,850
Ubiquiti Networks, Inc.		3,200		91,424
Universal Display Corp. *		5,800		255,606
ViaSat, Inc. *		10,700		643,284
Vishay Intertechnology, Inc.		18,588		235,696
Vishay Precision Group, Inc. *		5,620		80,197
Western Digital Corp.		41,745		4,080,156
Xybernaut Corp. *(b)(e)		1,400		—
Zebra Technologies Corp., Class A *		9,575		881,666
				282,769,056
Telecommunication Services 2.1%
Alaska Communications Systems Group, Inc. *		5,000		11,400
Alteva *		1,100		7,777
AT&T, Inc.		1,004,055		34,780,465
Atlantic Tele-Network, Inc.		3,250		214,565
CenturyLink, Inc.		114,178		4,105,841
Cincinnati Bell, Inc. *		61,468		210,835
Cogent Communications Holdings, Inc.		9,900		346,401
Consolidated Communications Holdings, Inc.		16,757		353,070
Frontier Communications Corp.		196,768		1,349,828
General Communication, Inc., Class A *		10,500		166,530
Globalstar, Inc. *(c)		42,400		109,816
inContact, Inc. *		20,172		208,780
Iridium Communications, Inc. *		11,800		120,006
Level 3 Communications, Inc. *		53,725		3,005,377
Lumos Networks Corp.		1,500		21,210
NTELOS Holdings Corp.		4,500		26,145
Premiere Global Services, Inc. *		11,400		116,394
SBA Communications Corp., Class A *		26,400		3,057,648
Shenandoah Telecommunications Co.		7,100		244,666
Spok Holdings, Inc.		5,500		103,538
Sprint Corp. *		142,805		732,590
T-Mobile US, Inc. *		57,450		1,955,598
Telephone & Data Systems, Inc.		22,222		593,550
United States Cellular Corp. *		5,400		199,422
Verizon Communications, Inc.		803,169		40,511,844
Vonage Holdings Corp. *		36,400		168,532
Windstream Holdings, Inc.		18,211		212,704
				92,934,532
Transportation 2.3%
Alaska Air Group, Inc.		25,000		1,601,500
Allegiant Travel Co.		2,000		307,520
AMERCO		1,000		322,040
American Airlines Group, Inc.		139,497		6,735,613
ArcBest Corp.		4,800		171,360
Atlas Air Worldwide Holdings, Inc. *		6,500		316,810
Avis Budget Group, Inc. *		20,600		1,115,284
C.H. Robinson Worldwide, Inc.		26,000		1,674,140
Celadon Group, Inc.		8,890		229,718
Con-way, Inc.		11,200		460,320
Covenant Transport Group, Inc., Class A *		3,000		91,410
CSX Corp.		192,700		6,954,543
Delta Air Lines, Inc.		161,811		7,223,243
Expeditors International of Washington, Inc.		45,400		2,080,682
FedEx Corp.		49,763		8,438,312
Forward Air Corp.		4,600		231,702
Genesee & Wyoming, Inc., Class A *		9,000		836,550
Hawaiian Holdings, Inc. *		10,700		246,956
Heartland Express, Inc.		16,241		339,762
Hertz Global Holdings, Inc. *		87,300		1,819,332
Hub Group, Inc., Class A *		7,100		283,290
J.B. Hunt Transport Services, Inc.		15,600		1,360,320
JetBlue Airways Corp. *		45,262		929,229
Kansas City Southern		23,255		2,383,405
Kirby Corp. *		11,100		871,683
Knight Transportation, Inc.		14,650		423,385
Landstar System, Inc.		6,600		411,246
Marten Transport Ltd.		9,476		210,936
Matson, Inc.		10,500		425,250
Norfolk Southern Corp.		60,500		6,101,425
Old Dominion Freight Line, Inc. *		12,412		882,865
Park-Ohio Holdings Corp.		3,600		166,788
Republic Airways Holdings, Inc. *		12,500		153,000
Roadrunner Transportation Systems, Inc. *		4,900		119,903
Ryder System, Inc.		9,500		905,920
Saia, Inc. *		4,450		181,337
SkyWest, Inc.		7,000		95,550
Southwest Airlines Co.		129,015		5,232,848
Spirit Airlines, Inc. *		14,000		958,580
Swift Transportation Co. *		19,000		459,800
Union Pacific Corp.		169,870		18,045,290
United Continental Holdings, Inc. *		75,700		4,522,318
United Parcel Service, Inc., Class B		135,085		13,580,095
Universal Truckload Services, Inc.		3,300		70,092
UTI Worldwide, Inc. *		14,600		131,838
Werner Enterprises, Inc.		10,032		269,560
Wesco Aircraft Holdings, Inc. *		13,500		211,680
XPO Logistics, Inc. *		11,710		567,935
YRC Worldwide, Inc. *		8,600		134,160
				101,286,525

58 See financial notes

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Utilities 3.0%
AES Corp.		118,796		1,574,047
AGL Resources, Inc.		21,529		1,082,263
ALLETE, Inc.		14,633		736,040
Alliant Energy Corp.		26,300		1,590,361
Ameren Corp.		43,176		1,767,626
American DG Energy, Inc. *		11,400		9,234
American Electric Power Co., Inc.		92,320		5,250,238
American States Water Co.		9,600		368,544
American Water Works Co., Inc.		40,000		2,180,800
Aqua America, Inc.		37,467		1,004,865
Artesian Resources Corp., Class A		4,000		86,160
Atmos Energy Corp.		17,400		939,600
Avista Corp.		7,800		254,436
Black Hills Corp.		7,700		379,533
Cadiz, Inc. *(c)		6,356		55,742
California Water Service Group		11,300		269,731
Calpine Corp. *		65,100		1,419,831
CenterPoint Energy, Inc.		77,000		1,614,690
Chesapeake Utilities Corp.		2,770		132,351
Cleco Corp.		11,700		635,895
CMS Energy Corp.		56,959		1,932,619
Connecticut Water Service, Inc.		5,100		183,600
Consolidated Edison, Inc.		55,510		3,416,641
Delta Natural Gas Co., Inc.		1,291		25,433
Dominion Resources, Inc.		114,565		8,212,019
DTE Energy Co.		33,748		2,687,353
Duke Energy Corp.		136,750		10,607,698
Dynegy, Inc. *		17,000		565,590
Edison International		59,310		3,614,351
El Paso Electric Co.		11,300		420,473
Entergy Corp.		34,293		2,646,734
Eversource Energy		61,336		2,990,743
Exelon Corp.		168,869		5,744,923
FirstEnergy Corp.		82,056		2,946,631
Genie Energy Ltd., Class B *		12,800		182,272
Great Plains Energy, Inc.		41,341		1,082,307
Hawaiian Electric Industries, Inc.		19,300		604,090
IDACORP, Inc.		9,800		591,234
Integrys Energy Group, Inc.		15,140		1,106,734
ITC Holdings Corp.		33,000		1,188,000
MDU Resources Group, Inc.		34,325		765,104
MGE Energy, Inc.		4,950		205,326
Middlesex Water Co.		9,400		214,038
National Fuel Gas Co.		20,700		1,334,115
New Jersey Resources Corp.		12,450		379,850
NextEra Energy, Inc.		85,372		8,616,596
NiSource, Inc.		55,764		2,421,273
Northwest Natural Gas Co.		6,300		294,210
NorthWestern Corp.		7,100		369,839
NRG Energy, Inc.		63,356		1,599,105
NRG Yield, Inc., Class A		8,300		408,360
OGE Energy Corp.		41,200		1,346,416
ONE Gas, Inc.		8,525		357,794
Ormat Technologies, Inc.		8,600		314,674
Otter Tail Corp.		7,800		233,298
Pattern Energy Group, Inc.		6,400		185,472
Pepco Holdings, Inc.		48,400		1,257,432
PG&E Corp.		90,000		4,762,800
Piedmont Natural Gas Co., Inc.		24,400		913,536
Pinnacle West Capital Corp.		18,200		1,113,840
PNM Resources, Inc.		11,200		311,136
Portland General Electric Co.		24,800		871,968
PPL Corp.		125,700		4,277,571
Public Service Enterprise Group, Inc.		97,800		4,062,612
Pure Cycle Corp. *		8,000		42,640
Questar Corp.		28,900		677,416
SCANA Corp.		27,305		1,446,619
Sempra Energy		44,396		4,713,523
SJW Corp.		4,470		130,748
South Jersey Industries, Inc.		4,200		221,550
Southwest Gas Corp.		6,500		357,500
TECO Energy, Inc.		41,000		776,950
TerraForm Power, Inc., Class A *		9,400		371,582
The Empire District Electric Co.		11,200		263,984
The Laclede Group, Inc.		15,200		789,336
The Southern Co.		177,921		7,881,900
The York Water Co.		6,100		153,476
UGI Corp.		27,900		971,199
UIL Holdings Corp.		11,166		556,960
Unitil Corp.		7,200		246,240
Vectren Corp.		15,266		659,033
Westar Energy, Inc.		21,000		790,650
WGL Holdings, Inc.		7,300		401,573
Wisconsin Energy Corp.		44,200		2,171,104
Xcel Energy, Inc.		103,108		3,496,392
				135,838,172
Total Common Stock
(Cost $2,747,125,132)				4,442,966,253
Rights 0.0% of net assets
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
FRD Acquisition Co. CVR *(b)(e)		8,700		—
Technology Hardware & Equipment 0.0%
Gerber Scientific, Inc. CVR *(b)(e)		8,900		—
Telecommunication Services 0.0%
Contra Leap Wireless CVR *(b)(e)		13,000		32,760
Total Rights
(Cost $32,983)				32,760
Warrants 0.0% of net assets
Energy 0.0%
Magnum Hunter Resources Corp. *(b)(e)		2,293		—
Total Warrants
(Cost $—)				—

See financial notes 59

 Schwab Total Stock Market Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Other Investment Company 0.7% of net assets
Securities Lending Collateral 0.7%
Wells Fargo Advantage Government Money Market Fund, Institutional Class 0.01% (d)		32,064,921		32,064,921
Total Other Investment Company
(Cost $32,064,921)				32,064,921
	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Short-Term Investment 0.8% of net assets
Time Deposit 0.8%
JPMorgan Chase Bank
0.03%, 05/01/15		33,950,307		33,950,307
Total Short-Term Investment
(Cost $33,950,307)				33,950,307
End of Investments.

At 04/30/15 tax basis cost of the fund’s investments was $2,833,067,288 and the unrealized appreciation and depreciation were $1,761,111,256 and ($85,164,303), respectively, with a net unrealized appreciation of $1,675,946,953.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.
(b)	Illiquid security. At the period end, the value of these amounted to $32,760 or 0.0% of net assets.
(c)	All or a portion of this security is on loan. Securities on loan were valued at $31,064,712.
(d)	The rate shown is the 7-day yield.
(e)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.

CVR —	Contingent Value Rights
REIT —	Real Estate Investment Trust

In addition to the above, the fund held the following at 04/30/15:

					Unrealized
			Contract		Appreciation
	Number of		Value		(Depreciation)
	Contracts		($)		($)
Futures Contracts
Russell 2000 Index, mini, Long, expires 06/19/15		45		5,473,800		(128,726	)
S&P 500 Index, e-mini, Long, expires 06/19/15		315		32,742,675		52,133
Net Unrealized Depreciation						(76,593	)

60 See financial notes

 Schwab International Index Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	98	.0%	Common Stock		2,224,135,874		2,846,224,974
	0	.7%	Preferred Stock		13,594,358		18,874,721
	0	.0%	Rights		469,760		484,642
	1	.1%	Other Investment Company		32,768,230		32,768,230
	0	.7%	Short-Term Investments		20,709,213		20,709,213
	100	.5%	Total Investments		2,291,677,435		2,919,061,780
	(0	.5%)	Other Assets and Liabilities, Net				(15,064,910	)
	100	.0%	Net Assets				2,903,996,870

	Number		Value
Security	of Shares		($)
Common Stock 98.0% of net assets
Australia 7.1%
Banks 2.6%
Australia & New Zealand Banking Group Ltd.		587,120		15,710,072
Bank of Queensland Ltd.		74,259		762,561
Bendigo & Adelaide Bank Ltd.		98,787		940,358
Commonwealth Bank of Australia		344,325		24,101,706
National Australia Bank Ltd.		504,572		14,610,068
Westpac Banking Corp.		660,287		18,970,487
				75,095,252
Capital Goods 0.0%
CIMIC Group Ltd.		18,875		312,566
Commercial & Professional Supplies 0.1%
ALS Ltd.		76,848		317,418
Brambles Ltd.		338,913		2,888,775
Seek Ltd.		74,156		948,505
				4,154,698
Consumer Services 0.1%
Crown Resorts Ltd.		71,852		735,749
Flight Centre Travel Group Ltd.		11,202		383,092
Tabcorp Holdings Ltd.		158,084		607,307
Tatts Group Ltd.		311,493		992,242
				2,718,390
Diversified Financials 0.2%
ASX Ltd.		42,332		1,406,122
Macquarie Group Ltd.		60,590		3,712,501
Platinum Asset Management Ltd.		46,261		275,312
				5,393,935
Energy 0.4%
Caltex Australia Ltd.		59,417		1,657,132
Origin Energy Ltd.		244,139		2,440,336
Santos Ltd.		217,726		1,417,905
Woodside Petroleum Ltd.		156,906		4,327,028
WorleyParsons Ltd.		40,513		363,998
				10,206,399
Food & Staples Retailing 0.5%
Wesfarmers Ltd.		237,160		8,174,740
Woolworths Ltd.		267,565		6,212,226
				14,386,966
Food, Beverage & Tobacco 0.1%
Coca-Cola Amatil Ltd.		129,657		1,049,671
Treasury Wine Estates Ltd.		125,835		551,883
				1,601,554
Health Care Equipment & Services 0.1%
Cochlear Ltd.		11,235		739,793
Healthscope Ltd.		273,248		612,367
Ramsay Health Care Ltd.		27,442		1,352,787
Sonic Healthcare Ltd.		76,797		1,203,559
				3,908,506
Insurance 0.4%
AMP Ltd.		639,357		3,238,645
Insurance Australia Group Ltd.		496,733		2,276,541
Medibank Pvt Ltd. *		623,599		1,088,768
QBE Insurance Group Ltd.		293,084		3,161,128
Suncorp Group Ltd.		277,948		2,874,363
				12,639,445
Materials 1.1%
Alumina Ltd.		529,070		641,999
Amcor Ltd.		260,682		2,775,244
BHP Billiton Ltd.		682,458		17,427,501
Boral Ltd.		188,222		937,608
Fortescue Metals Group Ltd. (a)		374,422		632,516
Iluka Resources Ltd.		88,811		565,935
Incitec Pivot Ltd.		340,968		1,070,816
James Hardie Industries plc CDI		96,740		1,111,118
Newcrest Mining Ltd. *		168,083		1,884,123
Orica Ltd.		76,325		1,209,572
Rio Tinto Ltd.		93,233		4,202,690
				32,459,122
Media 0.0%
REA Group Ltd.		11,698		435,112
Pharmaceuticals, Biotechnology & Life Sciences 0.3%
CSL Ltd.		100,162		7,179,941
Real Estate 0.6%
Dexus Property Group		188,738		1,096,672
Federation Centres		314,878		731,561
Goodman Group		376,758		1,848,712
Lend Lease Group		121,117		1,530,347
Mirvac Group		751,696		1,190,863
Novion Property Group		430,225		836,771

See financial notes 61

 Schwab International Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Scentre Group		1,141,957		3,363,829
Stockland		506,718		1,770,983
The GPT Group		353,697		1,246,531
Westfield Corp.		422,364		3,140,181
				16,756,450
Retailing 0.0%
Harvey Norman Holdings Ltd.		132,814		460,602
Software & Services 0.0%
Computershare Ltd.		98,275		953,307
Telecommunication Services 0.2%
Telstra Corp., Ltd.		901,674		4,432,359
TPG Telecom Ltd.		51,641		362,302
				4,794,661
Transportation 0.3%
Asciano Ltd.		194,653		1,011,400
Aurizon Holdings Ltd.		462,305		1,764,917
Qantas Airways Ltd. *		104,502		279,327
Sydney Airport		222,267		944,204
Toll Holdings Ltd.		146,551		1,037,247
Transurban Group		387,993		3,033,363
				8,070,458
Utilities 0.1%
AGL Energy Ltd.		145,962		1,751,052
APA Group		241,967		1,829,995
AusNet Services		407,266		473,574
				4,054,621
				205,581,985
Austria 0.2%
Banks 0.1%
Erste Group Bank AG		61,150		1,726,486
Raiffeisen Bank International AG		22,302		370,221
				2,096,707
Capital Goods 0.0%
ANDRITZ AG		16,557		969,358
Energy 0.0%
OMV AG		29,082		967,955
Insurance 0.0%
Vienna Insurance Group AG Wiener Versicherung Gruppe		6,791		270,247
Materials 0.1%
voestalpine AG		24,764		1,036,819
Real Estate 0.0%
IMMOFINANZ AG *		186,618		561,393
				5,902,479
Belgium 1.3%
Banks 0.1%
KBC Groep N.V. *		52,538		3,456,647
Diversified Financials 0.1%
Groupe Bruxelles Lambert S.A.		16,230		1,424,700
Food & Staples Retailing 0.1%
Colruyt S.A.		14,318		676,705
Delhaize Group S.A.		21,520		1,732,367
				2,409,072
Food, Beverage & Tobacco 0.7%
Anheuser-Busch InBev N.V.		171,093		20,830,278
Insurance 0.1%
Ageas		48,548		1,824,056
Materials 0.1%
Solvay S.A.		12,824		1,888,270
Umicore S.A.		22,068		1,096,926
				2,985,196
Media 0.0%
Telenet Group Holding N.V. *		11,584		696,144
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
UCB S.A.		27,018		1,946,183
Telecommunication Services 0.0%
Belgacom S.A.		30,597		1,139,580
				36,711,856
Denmark 1.7%
Banks 0.1%
Danske Bank A/S		140,583		3,987,029
Capital Goods 0.1%
Vestas Wind Systems A/S		47,466		2,152,937
Commercial & Professional Supplies 0.0%
ISS A/S		27,640		933,649
Consumer Durables & Apparel 0.1%
Pandora A/S		24,157		2,496,903
Food, Beverage & Tobacco 0.1%
Carlsberg A/S, Class B		23,012		2,097,970
Health Care Equipment & Services 0.1%
Coloplast A/S, Class B		23,114		1,886,659
William Demant Holding A/S *		4,937		406,136
				2,292,795
Insurance 0.0%
Tryg A/S		4,412		479,119
Materials 0.1%
Novozymes A/S, B Shares		49,471		2,282,419
Pharmaceuticals, Biotechnology & Life Sciences 0.8%
Novo Nordisk A/S, Class B		427,392		23,994,074
Telecommunication Services 0.1%
TDC A/S		180,494		1,374,174
Transportation 0.2%
AP Moeller - Maersk A/S, Series A		825		1,590,514
AP Moeller - Maersk A/S, Series B		1,496		2,968,938
DSV A/S		39,428		1,367,744
				5,927,196
				48,018,265
Finland 0.8%
Automobiles & Components 0.0%
Nokian Renkaat Oyj (a)		26,034		846,001

62 See financial notes

 Schwab International Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Capital Goods 0.2%
Kone Oyj, Class B		67,301		2,895,397
Metso Oyj		25,010		710,944
Wartsila Oyj Abp		30,003		1,376,538
				4,982,879
Energy 0.0%
Neste Oil Oyj		25,176		684,738
Insurance 0.2%
Sampo Oyj, A Shares		95,780		4,640,947
Materials 0.1%
Stora Enso Oyj, R Shares		112,954		1,188,645
UPM-Kymmene Oyj		112,408		2,033,973
				3,222,618
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Orion Oyj, Class B		23,550		770,063
Technology Hardware & Equipment 0.2%
Nokia Oyj		795,210		5,365,624
Telecommunication Services 0.0%
Elisa Oyj		31,961		979,134
Utilities 0.1%
Fortum Oyj		93,478		1,845,948
				23,337,952
France 9.7%
Automobiles & Components 0.4%
Compagnie Generale des Etablissements Michelin		39,060		4,355,807
Peugeot S.A. *		86,764		1,640,326
Renault S.A.		40,602		4,272,048
Valeo S.A.		16,214		2,599,423
				12,867,604
Banks 0.9%
BNP Paribas S.A.		225,919		14,267,072
Credit Agricole S.A.		219,797		3,419,678
Natixis S.A.		205,635		1,702,136
Societe Generale S.A.		153,471		7,672,730
				27,061,616
Capital Goods 1.5%
Airbus Group N.V.		125,497		8,697,205
Alstom S.A. *		47,814		1,502,044
Bouygues S.A. (a)		35,399		1,461,436
Compagnie de Saint-Gobain		94,267		4,284,161
Legrand S.A.		56,199		3,249,579
Rexel S.A.		55,601		1,047,892
Safran S.A.		61,310		4,479,758
Schneider Electric SE		111,091		8,303,872
Thales S.A.		18,499		1,126,141
Vallourec S.A.		22,551		531,771
Vinci S.A.		100,898		6,188,548
Zodiac Aerospace		41,394		1,520,123
				42,392,530
Commercial & Professional Supplies 0.1%
Bureau Veritas S.A.		59,466		1,400,280
Edenred		41,546		1,113,821
Societe BIC S.A.		5,949		1,019,009
				3,533,110
Consumer Durables & Apparel 0.6%
Christian Dior SE		11,461		2,240,636
Hermes International		5,562		2,097,591
Kering		16,175		2,991,350
LVMH Moet Hennessy Louis Vuitton SE		59,749		10,448,084
				17,777,661
Consumer Services 0.2%
Accor S.A.		44,776		2,455,283
Sodexo S.A.		20,337		2,057,904
				4,513,187
Diversified Financials 0.1%
Eurazeo S.A.		8,624		617,303
Wendel S.A.		7,462		916,506
				1,533,809
Energy 0.9%
Technip S.A. (a)		23,810		1,623,189
Total S.A.		456,145		24,700,229
				26,323,418
Food & Staples Retailing 0.2%
Carrefour S.A.		115,363		3,977,588
Casino Guichard Perrachon S.A.		11,366		1,005,067
				4,982,655
Food, Beverage & Tobacco 0.5%
Danone S.A.		122,569		8,869,351
Pernod-Ricard S.A.		45,533		5,659,017
Remy Cointreau S.A.		5,148		387,309
				14,915,677
Health Care Equipment & Services 0.2%
Essilor International S.A.		43,820		5,338,593
Household & Personal Products 0.3%
L’Oreal S.A.		53,392		10,189,375
Insurance 0.4%
AXA S.A.		386,494		9,772,824
CNP Assurances		33,282		598,193
SCOR SE		34,843		1,254,060
				11,625,077
Materials 0.6%
Air Liquide S.A.		72,980		9,544,349
ArcelorMittal (a)		211,971		2,255,679
Arkema S.A.		14,630		1,177,323
Imerys S.A.		6,455		491,308
Lafarge S.A.		40,009		2,919,251
				16,387,910
Media 0.5%
Eutelsat Communications S.A.		30,585		1,066,329
JC Decaux S.A.		15,814		624,717
Lagardere S.C.A.		27,000		866,723
Numericable-SFR SAS *		19,600		1,089,499
Publicis Groupe S.A.		39,929		3,348,866
SES S.A.		63,131		2,212,503
Vivendi S.A.		259,257		6,499,232
				15,707,869
Pharmaceuticals, Biotechnology & Life Sciences 0.9%
Sanofi		254,094		25,864,332

See financial notes 63

 Schwab International Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Real Estate 0.3%
Fonciere Des Regions		6,593		624,149
Gecina S.A.		5,754		789,119
ICADE		7,471		649,796
Klepierre		37,587		1,823,181
Unibail-Rodamco SE		21,016		5,802,738
				9,688,983
Semiconductors & Semiconductor Equipment 0.0%
STMicroelectronics N.V.		129,825		1,035,429
Software & Services 0.2%
Atos SE		16,392		1,281,218
Cap Gemini S.A.		31,180		2,777,999
Dassault Systemes S.A.		27,396		2,111,035
				6,170,252
Technology Hardware & Equipment 0.1%
Alcatel-Lucent *		590,963		2,051,828
Telecommunication Services 0.3%
Iliad S.A.		5,532		1,306,611
Orange S.A.		392,004		6,456,821
				7,763,432
Transportation 0.1%
Aeroports de Paris		6,658		820,742
Bollore S.A.		195,141		1,115,239
Groupe Eurotunnel SE - Reg’d		101,963		1,634,727
				3,570,708
Utilities 0.4%
Electricite de France S.A.		54,100		1,376,567
GDF Suez		309,669		6,300,646
Suez Environnement Co.		66,049		1,347,091
Veolia Environnement S.A.		91,247		1,930,786
				10,955,090
				282,250,145
Germany 8.3%
Automobiles & Components 1.2%
Bayerische Motoren Werke AG		70,697		8,339,743
Continental AG		23,442		5,493,741
Daimler AG - Reg’d		204,846		19,695,261
Volkswagen AG		6,123		1,551,040
				35,079,785
Banks 0.1%
Commerzbank AG *		209,820		2,830,659
Capital Goods 0.8%
Brenntag AG		32,794		1,967,662
GEA Group AG		39,056		1,875,700
MAN SE		7,010		760,538
OSRAM Licht AG		19,208		1,011,952
Siemens AG - Reg’d		169,096		18,394,584
				24,010,436
Consumer Durables & Apparel 0.2%
adidas AG		44,341		3,633,117
Hugo Boss AG		13,933		1,714,462
				5,347,579
Diversified Financials 0.4%
Deutsche Bank AG - Reg’d		294,839		9,429,492
Deutsche Boerse AG		40,828		3,383,164
				12,812,656
Food & Staples Retailing 0.0%
METRO AG		33,291		1,206,628
Health Care Equipment & Services 0.3%
Celesio AG		9,063		268,940
Fresenius Medical Care AG & Co. KGaA		45,853		3,853,560
Fresenius SE & Co. KGaA		81,111		4,825,530
				8,948,030
Household & Personal Products 0.2%
Beiersdorf AG		21,477		1,868,190
Henkel AG & Co. KGaA		25,657		2,598,937
				4,467,127
Insurance 0.9%
Allianz SE - Reg’d		97,231		16,550,139
Hannover Rueck SE		12,443		1,264,839
Muenchener Rueckversicherungs-Gesellschaft AG - Reg’d (a)		37,015		7,225,236
				25,040,214
Materials 1.2%
BASF SE		195,854		19,457,706
HeidelbergCement AG		29,280		2,247,545
K&S AG - Reg’d		36,453		1,188,347
LANXESS AG		20,526		1,095,567
Linde AG		39,887		7,794,301
Symrise AG		25,367		1,538,087
ThyssenKrupp AG		93,551		2,485,596
				35,807,149
Media 0.1%
Axel Springer SE		9,201		513,307
Kabel Deutschland Holding AG *		4,715		631,889
ProSiebenSat.1 Media AG - Reg’d		46,789		2,392,189
RTL Group S.A. *		7,403		694,037
				4,231,422
Pharmaceuticals, Biotechnology & Life Sciences 1.0%
Bayer AG - Reg’d		176,066		25,341,634
Merck KGaA		27,830		3,000,216
QIAGEN N.V. *		51,197		1,231,053
				29,572,903
Real Estate 0.1%
Deutsche Annington Immobilien SE		71,756		2,408,498
Deutsche Wohnen AG		63,194		1,657,558
				4,066,056
Semiconductors & Semiconductor Equipment 0.1%
Infineon Technologies AG		244,614		2,875,862
Software & Services 0.6%
SAP SE		196,678		14,861,972
United Internet AG - Reg’d		25,106		1,122,464
				15,984,436
Telecommunication Services 0.5%
Deutsche Telekom AG - Reg’d		677,109		12,445,704

64 See financial notes

 Schwab International Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Telefonica Deutschland Holding AG		115,703		717,083
				13,162,787
Transportation 0.3%
Deutsche Lufthansa AG - Reg’d *		43,042		593,619
Deutsche Post AG - Reg’d		206,732		6,807,321
Fraport AG Frankfurt Airport Services Worldwide		7,032		444,768
				7,845,708
Utilities 0.3%
E.ON SE		424,420		6,607,372
RWE AG		106,308		2,641,692
				9,249,064
				242,538,501
Hong Kong 3.3%
Banks 0.3%
BOC Hong Kong (Holdings) Ltd.		805,500		3,124,308
Hang Seng Bank Ltd.		159,736		3,111,951
The Bank of East Asia Ltd.		262,000		1,136,692
				7,372,951
Capital Goods 0.2%
Hutchison Whampoa Ltd.		449,370		6,621,214
NWS Holdings Ltd.		321,000		544,758
				7,165,972
Consumer Durables & Apparel 0.1%
Li & Fung Ltd.		1,192,000		1,214,014
Techtronic Industries Co., Ltd.		295,500		1,045,744
Yue Yuen Industrial Holdings Ltd.		160,500		609,851
				2,869,609
Consumer Services 0.2%
Galaxy Entertainment Group Ltd.		489,000		2,350,074
MGM China Holdings Ltd.		183,200		345,820
Sands China Ltd.		510,000		2,078,959
Shangri-La Asia Ltd.		258,000		391,301
SJM Holdings Ltd.		398,000		504,605
Wynn Macau Ltd.		321,600		650,970
				6,321,729
Diversified Financials 0.3%
First Pacific Co., Ltd.		493,250		478,577
Hong Kong Exchanges & Clearing Ltd.		237,318		9,046,617
				9,525,194
Food, Beverage & Tobacco 0.0%
WH Group Ltd. *		701,000		489,289
Insurance 0.6%
AIA Group Ltd.		2,575,000		17,124,971
Real Estate 1.0%
CK Hutchison Holdings Ltd.		294,156		6,380,883
Hang Lung Properties Ltd.		525,000		1,774,796
Henderson Land Development Co., Ltd.		219,490		1,759,676
Hysan Development Co., Ltd.		125,000		577,582
Kerry Properties Ltd.		121,000		493,835
New World Development Co., Ltd.		1,041,666		1,381,625
Sino Land Co., Ltd.		616,000		1,083,766
Sun Hung Kai Properties Ltd.		359,604		5,972,487
Swire Pacific Ltd., Class A		136,590		1,842,221
Swire Properties Ltd.		273,800		940,653
The Link REIT		496,000		3,076,676
The Wharf Holdings Ltd.		319,100		2,299,151
Wheelock & Co., Ltd.		185,000		1,041,722
				28,625,073
Semiconductors & Semiconductor Equipment 0.0%
ASM Pacific Technology Ltd.		56,800		633,960
Telecommunication Services 0.1%
HKT Trust & HKT Ltd.		536,000		716,576
PCCW Ltd.		976,000		649,782
				1,366,358
Transportation 0.1%
Cathay Pacific Airways Ltd.		259,000		666,938
MTR Corp., Ltd.		311,000		1,528,476
				2,195,414
Utilities 0.4%
Cheung Kong Infrastructure Holdings Ltd.		136,000		1,152,108
CLP Holdings Ltd.		411,580		3,602,854
Hong Kong & China Gas Co., Ltd.		1,373,197		3,270,963
Power Assets Holdings Ltd.		288,500		2,911,937
				10,937,862
				94,628,382
Ireland 0.3%
Banks 0.1%
Bank of Ireland *		5,765,775		2,228,896
Food, Beverage & Tobacco 0.1%
Kerry Group plc, Class A		33,005		2,427,597
Materials 0.1%
CRH plc		173,807		4,883,567
Transportation 0.0%
Ryanair Holdings plc		35,363		414,775
				9,954,835
Israel 0.5%
Banks 0.1%
Bank Hapoalim B.M.		234,191		1,171,413
Bank Leumi Le-Israel B.M. *		271,295		1,054,427
Mizrahi Tefahot Bank Ltd. *		30,973		346,433
				2,572,273
Energy 0.0%
Delek Group Ltd.		790		220,395
Materials 0.0%
Israel Chemicals Ltd.		85,438		597,785
The Israel Corp., Ltd.		609		224,324
				822,109

See financial notes 65

 Schwab International Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Pharmaceuticals, Biotechnology & Life Sciences 0.4%
Teva Pharmaceutical Industries Ltd.		179,989		10,936,908
Software & Services 0.0%
NICE-Systems Ltd.		11,048		664,102
Telecommunication Services 0.0%
Bezeq The Israeli Telecommunication Corp., Ltd.		407,063		770,994
				15,986,781
Italy 2.3%
Automobiles & Components 0.1%
Fiat Chrysler Automobiles N.V. *		192,853		2,871,856
Pirelli & C. S.p.A.		54,676		945,998
				3,817,854
Banks 0.7%
Banca Monte dei Paschi di Siena S.p.A. *(a)		889,313		548,091
Banco Popolare SC *		75,605		1,195,275
Intesa Sanpaolo S.p.A.		2,687,040		9,027,113
UniCredit S.p.A.		937,104		6,726,651
Unione di Banche Italiane S.C.p.A.		186,290		1,478,653
				18,975,783
Capital Goods 0.1%
CNH Industrial N.V.		202,319		1,777,610
Finmeccanica S.p.A. *		82,641		1,054,409
Prysmian S.p.A.		46,008		938,243
				3,770,262
Consumer Durables & Apparel 0.1%
Luxottica Group S.p.A.		35,440		2,333,968
Diversified Financials 0.1%
EXOR S.p.A.		21,408		987,638
Mediobanca S.p.A.		138,232		1,341,896
				2,329,534
Energy 0.4%
Eni S.p.A.		543,620		10,429,812
Saipem S.p.A. *(a)		62,014		822,196
Tenaris S.A.		95,263		1,462,688
				12,714,696
Insurance 0.2%
Assicurazioni Generali S.p.A.		244,546		4,778,226
UnipolSai S.p.A.		172,787		483,521
				5,261,747
Telecommunication Services 0.1%
Telecom Italia S.p.A. *		2,071,705		2,445,165
Telecom Italia S.p.A. - RSP		1,349,547		1,298,795
				3,743,960
Transportation 0.1%
Atlantia S.p.A.		85,936		2,416,947
Utilities 0.4%
Enel Green Power S.p.A.		383,029		743,779
Enel S.p.A.		1,403,998		6,654,865
Snam S.p.A.		454,093		2,365,435
Terna - Rete Elettrica Nationale S.p.A.		300,867		1,418,390
				11,182,469
				66,547,220
Japan 21.9%
Automobiles & Components 3.2%
Aisin Seiki Co., Ltd.		42,100		1,925,146
Bridgestone Corp.		139,357		5,836,784
Daihatsu Motor Co., Ltd.		39,700		575,071
Denso Corp.		104,100		5,168,123
Fuji Heavy Industries Ltd.		124,000		4,146,559
Honda Motor Co., Ltd.		347,839		11,661,428
Isuzu Motors Ltd.		131,900		1,748,177
Koito Manufacturing Co., Ltd.		18,000		629,862
Mazda Motor Corp.		114,800		2,250,309
Mitsubishi Motors Corp.		129,700		1,193,392
NGK Spark Plug Co., Ltd.		40,200		1,125,733
NHK Spring Co., Ltd.		37,000		423,596
Nissan Motor Co., Ltd.		532,996		5,532,867
NOK Corp.		20,800		653,647
Stanley Electric Co., Ltd.		27,000		605,816
Sumitomo Electric Industries Ltd.		164,400		2,322,669
Sumitomo Rubber Industries Ltd.		32,400		600,739
Suzuki Motor Corp.		77,600		2,508,195
The Yokohama Rubber Co., Ltd.		49,000		527,268
Toyoda Gosei Co., Ltd.		11,300		261,443
Toyota Industries Corp.		34,300		1,942,558
Toyota Motor Corp.		581,803		40,498,795
Yamaha Motor Co., Ltd.		57,100		1,343,687
				93,481,864
Banks 2.1%
Aozora Bank Ltd.		253,000		946,331
Fukuoka Financial Group, Inc.		180,000		1,034,144
Hokuhoku Financial Group, Inc.		282,000		674,384
Mitsubishi UFJ Financial Group, Inc.		2,715,809		19,294,057
Mizuho Financial Group, Inc.		4,953,334		9,442,440
Resona Holdings, Inc.		460,500		2,455,416
Seven Bank Ltd.		116,700		628,764
Shinsei Bank Ltd.		346,000		708,024
Sumitomo Mitsui Financial Group, Inc.		271,446		11,852,577
Sumitomo Mitsui Trust Holdings, Inc.		714,000		3,142,984
Suruga Bank Ltd.		43,600		961,091
The Bank of Kyoto Ltd.		77,000		839,415
The Bank of Yokohama Ltd.		253,000		1,605,681
The Chiba Bank Ltd.		166,000		1,364,257
The Chugoku Bank Ltd.		32,500		522,149
The Gunma Bank Ltd.		72,000		509,851
The Hachijuni Bank Ltd.		77,000		600,271
The Hiroshima Bank Ltd.		116,000		677,535
The Iyo Bank Ltd.		46,000		573,021
The Joyo Bank Ltd.		125,000		683,743
The Shizuoka Bank Ltd.		117,000		1,288,072

66 See financial notes

 Schwab International Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Yamaguchi Financial Group, Inc.		49,000		614,205
				60,418,412
Capital Goods 3.0%
Amada Holdings Co., Ltd.		71,000		716,479
Asahi Glass Co., Ltd.		222,000		1,494,051
Chiyoda Corp.		29,000		263,171
Daikin Industries Ltd.		50,700		3,415,609
FANUC Corp.		40,900		8,996,473
Fuji Electric Co., Ltd.		104,000		490,453
Hino Motors Ltd.		50,000		652,289
Hitachi Construction Machinery Co., Ltd.		23,300		413,659
IHI Corp.		305,000		1,398,312
ITOCHU Corp.		336,800		4,147,041
JGC Corp.		41,000		853,245
JTEKT Corp.		44,300		754,504
Kajima Corp.		170,000		812,060
Kawasaki Heavy Industries Ltd.		286,000		1,474,003
Keihan Electric Railway Co., Ltd.		115,000		666,983
Komatsu Ltd.		197,709		3,977,731
Kubota Corp.		239,000		3,740,593
Kurita Water Industries Ltd.		18,200		472,917
LIXIL Group Corp.		58,600		1,221,431
Mabuchi Motor Co., Ltd.		11,300		676,619
Makita Corp.		26,700		1,332,444
Marubeni Corp.		343,500		2,126,970
Minebea Co., Ltd.		70,000		1,073,319
Mitsubishi Corp.		296,600		6,399,648
Mitsubishi Electric Corp.		412,000		5,380,597
Mitsubishi Heavy Industries Ltd.		659,000		3,651,334
Mitsui & Co., Ltd.		360,100		5,036,403
Nabtesco Corp.		22,100		607,839
NGK Insulators Ltd.		57,000		1,280,433
Nidec Corp.		45,000		3,366,213
NSK Ltd.		104,000		1,624,253
Obayashi Corp.		142,000		948,484
Seibu Holdings, Inc.		27,000		781,946
Shimizu Corp.		124,000		891,787
SMC Corp.		11,400		3,429,369
Sumitomo Corp.		233,400		2,755,921
Sumitomo Heavy Industries Ltd.		123,000		764,199
Taisei Corp.		209,000		1,210,704
THK Co., Ltd.		25,700		645,609
Toshiba Corp.		872,178		3,494,432
TOTO Ltd.		65,000		919,571
Toyota Tsusho Corp.		48,400		1,244,445
				85,603,543
Commercial & Professional Supplies 0.2%
Dai Nippon Printing Co., Ltd.		110,000		1,136,366
Park24 Co., Ltd.		18,000		359,504
Recruit Holdings Co., Ltd.		28,900		972,925
Secom Co., Ltd.		43,900		3,111,253
Toppan Printing Co., Ltd.		112,000		939,046
				6,519,094
Consumer Durables & Apparel 0.9%
Asics Corp.		31,200		800,601
Bandai Namco Holdings, Inc.		36,000		739,561
Casio Computer Co., Ltd.		41,300		835,017
Iida Group Holdings Co., Ltd.		30,100		403,993
Nikon Corp.		70,700		1,005,246
Panasonic Corp.		472,812		6,772,498
Rinnai Corp.		8,500		644,921
Sankyo Co., Ltd.		10,600		401,491
Sega Sammy Holdings, Inc.		46,500		649,158
Sekisui Chemical Co., Ltd.		85,000		1,133,384
Sekisui House Ltd.		116,500		1,805,827
Sharp Corp. *(a)		310,785		669,699
Shimano, Inc.		17,100		2,449,592
Sony Corp. *		245,200		7,412,822
Yamaha Corp.		34,900		634,209
				26,358,019
Consumer Services 0.1%
Benesse Holdings, Inc.		14,200		445,039
McDonald’s Holdings Co., Ltd. (a)		15,000		325,660
Oriental Land Co., Ltd.		42,700		2,890,806
				3,661,505
Diversified Financials 0.6%
Acom Co., Ltd. *		88,800		294,847
AEON Financial Service Co., Ltd.		24,800		632,215
Credit Saison Co., Ltd.		27,800		525,694
Daiwa Securities Group, Inc.		361,000		2,994,788
Japan Exchange Group, Inc.		56,500		1,632,406
Mitsubishi UFJ Lease & Finance Co., Ltd.		97,400		522,481
Nomura Holdings, Inc.		767,400		4,978,441
ORIX Corp.		279,800		4,302,873
SBI Holdings, Inc.		38,090		505,287
				16,389,032
Energy 0.2%
Idemitsu Kosan Co., Ltd.		20,100		389,373
Inpex Corp.		182,900		2,295,455
JX Holdings, Inc.		492,800		2,145,987
Showa Shell Sekiyu K.K.		33,500		323,150
TonenGeneral Sekiyu K.K.		61,000		585,436
				5,739,401
Food & Staples Retailing 0.4%
Aeon Co., Ltd.		141,700		1,762,871
FamilyMart Co., Ltd.		11,200		482,306
Lawson, Inc.		15,300		1,100,222
Seven & i Holdings Co., Ltd.		162,003		6,963,588
				10,308,987
Food, Beverage & Tobacco 0.8%
Ajinomoto Co., Inc.		119,000		2,638,547
Asahi Group Holdings Ltd.		80,100		2,575,778
Calbee, Inc.		16,700		679,934
Japan Tobacco, Inc.		232,500		8,119,101
Kikkoman Corp.		30,000		855,565
Kirin Holdings Co., Ltd.		169,300		2,240,890
MEIJI Holdings Co., Ltd.		12,300		1,413,030
NH Foods Ltd.		39,000		852,093
Nisshin Seifun Group, Inc.		40,400		471,151
Nissin Foods Holdings Co., Ltd.		11,900		570,559
Suntory Beverage & Food Ltd.		30,400		1,292,919

See financial notes 67

 Schwab International Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Toyo Suisan Kaisha Ltd.		18,800		657,817
Yakult Honsha Co., Ltd.		19,700		1,238,927
Yamazaki Baking Co., Ltd.		26,000		460,215
				24,066,526
Health Care Equipment & Services 0.3%
Alfresa Holdings Corp.		42,400		635,436
M3, Inc.		43,700		825,733
Medipal Holdings Corp.		26,100		356,069
Miraca Holdings, Inc.		11,800		593,651
Olympus Corp. *		51,900		1,868,917
Suzuken Co., Ltd.		15,900		497,549
Sysmex Corp.		30,200		1,671,018
Terumo Corp.		66,500		1,708,042
				8,156,415
Household & Personal Products 0.3%
Kao Corp.		108,819		5,211,230
Shiseido Co., Ltd.		78,500		1,414,023
Unicharm Corp.		79,700		2,006,062
				8,631,315
Insurance 0.6%
MS&AD Insurance Group Holdings, Inc.		109,062		3,121,031
Sompo Japan Nipponkoa Holdings, Inc.		71,200		2,326,091
Sony Financial Holdings, Inc.		33,000		592,434
T&D Holdings, Inc.		128,200		1,849,897
The Dai-ichi Life Insurance Co., Ltd.		230,400		3,786,831
Tokio Marine Holdings, Inc.		148,299		6,045,511
				17,721,795
Materials 1.3%
Air Water, Inc.		34,000		603,852
Asahi Kasei Corp.		273,000		2,570,740
Daicel Corp.		62,500		753,507
Hitachi Chemical Co., Ltd.		22,600		437,444
Hitachi Metals Ltd.		46,000		719,404
JFE Holdings, Inc.		104,700		2,363,586
JSR Corp.		40,400		689,120
Kaneka Corp.		58,000		404,370
Kansai Paint Co., Ltd.		47,000		837,797
Kobe Steel Ltd.		687,000		1,248,683
Kuraray Co., Ltd.		76,700		1,037,193
Maruichi Steel Tube Ltd.		8,800		222,267
Mitsubishi Chemical Holdings Corp.		278,700		1,735,250
Mitsubishi Gas Chemical Co., Inc.		85,000		474,961
Mitsubishi Materials Corp.		232,000		835,194
Mitsui Chemicals, Inc.		180,000		595,078
Nippon Paint Holdings Co., Ltd.		30,200		1,011,631
Nippon Steel & Sumitomo Metal Corp.		1,599,410		4,160,411
Nitto Denko Corp.		33,800		2,166,091
Oji Holdings Corp.		173,000		769,405
Shin-Etsu Chemical Co., Ltd.		86,260		5,272,970
Sumitomo Chemical Co., Ltd.		322,000		1,810,911
Sumitomo Metal Mining Co., Ltd.		115,000		1,685,577
Taiheiyo Cement Corp.		238,000		749,998
Taiyo Nippon Sanso Corp.		29,000		376,374
Teijin Ltd.		201,000		682,790
Toray Industries, Inc.		303,000		2,633,871
Toyo Seikan Group Holdings Ltd.		33,400		528,147
Yamato Kogyo Co., Ltd.		7,700		181,165
				37,557,787
Media 0.1%
Dentsu, Inc.		44,600		2,079,015
Hakuhodo DY Holdings, Inc.		53,300		570,398
Toho Co., Ltd.		23,800		591,568
				3,240,981
Pharmaceuticals, Biotechnology & Life Sciences 1.2%
Astellas Pharma, Inc.		458,850		7,144,614
Chugai Pharmaceutical Co., Ltd.		49,200		1,496,258
Daiichi Sankyo Co., Ltd.		133,300		2,315,246
Eisai Co., Ltd.		53,500		3,566,171
Hisamitsu Pharmaceutical Co., Inc.		10,700		461,105
Kyowa Hakko Kirin Co., Ltd.		53,000		775,854
Mitsubishi Tanabe Pharma Corp.		51,200		871,173
Ono Pharmaceutical Co., Ltd.		17,200		1,864,121
Otsuka Holdings Co., Ltd.		83,000		2,619,856
Santen Pharmaceutical Co., Ltd.		82,400		1,090,736
Shionogi & Co., Ltd.		61,500		2,027,327
Sumitomo Dainippon Pharma Co., Ltd.		28,500		322,020
Taisho Pharmaceutical Holdings Co., Ltd.		6,500		456,784
Takeda Pharmaceutical Co., Ltd.		168,900		8,671,499
				33,682,764
Real Estate 1.0%
Aeon Mall Co., Ltd.		27,400		511,117
Daito Trust Construction Co., Ltd.		16,000		1,863,210
Daiwa House Industry Co., Ltd.		125,200		2,795,091
Hulic Co., Ltd.		45,700		489,159
Japan Prime Realty Investment Corp.		149		534,598
Japan Real Estate Investment Corp.		279		1,317,448
Japan Retail Fund Investment Corp.		488		1,038,885
Mitsubishi Estate Co., Ltd.		265,502		6,249,193
Mitsui Fudosan Co., Ltd.		198,777		5,892,605
Nippon Building Fund, Inc.		287		1,428,076
Nippon Prologis REIT, Inc.		330		715,028
Nomura Real Estate Holdings, Inc.		24,300		493,946
NTT Urban Development Corp.		22,700		236,333
Sumitomo Realty & Development Co., Ltd.		77,000		2,971,878
Tokyo Tatemono Co., Ltd.		79,000		572,802
Tokyu Fudosan Holdings Corp.		110,200		818,890
United Urban Investment Corp.		576		914,269
				28,842,528

68 See financial notes

 Schwab International Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Retailing 0.5%
ABC-Mart, Inc.		5,980		340,256
Don Quijote Holdings Co., Ltd.		12,200		930,791
Fast Retailing Co., Ltd.		11,200		4,411,454
Hikari Tsushin, Inc.		3,100		206,902
Isetan Mitsukoshi Holdings Ltd.		68,900		1,114,785
J. Front Retailing Co., Ltd.		50,900		848,182
Marui Group Co., Ltd.		52,300		570,938
Nitori Holdings Co., Ltd.		14,200		1,092,108
Rakuten, Inc.		171,320		2,993,037
Sanrio Co., Ltd. (a)		10,800		289,294
Shimamura Co., Ltd.		4,200		418,635
Takashimaya Co., Ltd.		60,000		559,947
USS Co., Ltd.		51,200		901,519
Yamada Denki Co., Ltd.		174,000		712,194
				15,390,042
Semiconductors & Semiconductor Equipment 0.1%
Advantest Corp.		30,800		363,113
Rohm Co., Ltd.		21,500		1,491,343
Tokyo Electron Ltd.		36,800		2,017,094
				3,871,550
Software & Services 0.5%
COLOPL, Inc. (a)		9,400		192,488
Fujitsu Ltd.		404,000		2,677,855
GungHo Online Entertainment, Inc. (a)		80,100		328,823
Itochu Techno-Solutions Corp.		9,012		205,239
Kakaku.com, Inc.		31,300		485,399
Konami Corp.		19,400		356,031
Mixi, Inc. (a)		7,300		286,461
Nexon Co., Ltd.		28,900		368,622
Nintendo Co., Ltd.		22,639		3,801,089
Nomura Research Institute Ltd.		23,500		927,369
NTT Data Corp.		25,800		1,154,390
Oracle Corp., Japan		6,600		301,300
Otsuka Corp.		10,700		492,831
Trend Micro, Inc.		20,500		693,546
Yahoo Japan Corp.		317,400		1,296,651
				13,568,094
Technology Hardware & Equipment 1.8%
Brother Industries Ltd.		54,100		860,755
Canon, Inc.		242,395		8,642,526
Citizen Holdings Co., Ltd.		49,100		388,562
FUJIFILM Holdings Corp.		98,211		3,699,315
Hamamatsu Photonics K.K.		32,100		936,306
Hirose Electric Co., Ltd.		5,985		842,708
Hitachi High-Technologies Corp.		10,900		315,878
Hitachi Ltd.		1,017,079		6,939,431
Hoya Corp.		90,707		3,495,926
Ibiden Co., Ltd.		22,300		390,019
Japan Display, Inc. *		67,000		275,232
Keyence Corp.		9,800		5,231,716
Konica Minolta, Inc.		94,500		1,043,478
Kyocera Corp.		67,900		3,544,479
Murata Manufacturing Co., Ltd.		43,374		6,112,002
NEC Corp.		564,000		1,876,434
Nippon Electric Glass Co., Ltd.		88,000		500,427
Omron Corp.		42,500		1,951,516
Ricoh Co., Ltd.		157,600		1,628,753
Seiko Epson Corp.		51,200		894,687
Shimadzu Corp.		58,000		678,416
TDK Corp.		25,500		1,836,821
Yaskawa Electric Corp.		43,000		590,799
Yokogawa Electric Corp.		51,000		597,309
				53,273,495
Telecommunication Services 1.1%
KDDI Corp.		374,100		8,852,080
Nippon Telegraph & Telephone Corp.		79,078		5,339,739
NTT DOCOMO, Inc.		326,500		5,783,125
SoftBank Corp.		204,900		12,808,361
				32,783,305
Transportation 1.1%
ANA Holdings, Inc.		246,000		680,126
Central Japan Railway Co.		30,400		5,429,635
East Japan Railway Co.		70,960		6,271,939
Hankyu Hanshin Holdings, Inc.		251,000		1,515,055
Japan Airlines Co., Ltd.		23,000		766,870
Kamigumi Co., Ltd.		51,000		510,620
Keikyu Corp.		94,000		747,226
Keio Corp.		132,000		1,019,517
Keisei Electric Railway Co., Ltd.		62,000		734,926
Kintetsu Group Holdings Co., Ltd.		357,000		1,264,380
Mitsubishi Logistics Corp.		25,000		386,719
Mitsui O.S.K. Lines Ltd.		269,000		949,760
Nagoya Railroad Co., Ltd.		194,000		766,295
Nippon Express Co., Ltd.		184,000		1,056,242
Nippon Yusen K.K.		331,000		1,040,500
Odakyu Electric Railway Co., Ltd.		124,000		1,247,751
Tobu Railway Co., Ltd.		222,000		1,058,298
Tokyu Corp.		247,000		1,642,202
West Japan Railway Co.		36,400		2,015,957
Yamato Holdings Co., Ltd.		76,700		1,716,615
				30,820,633
Utilities 0.5%
Chubu Electric Power Co., Inc.		140,100		1,856,969
Electric Power Development Co., Ltd.		29,600		993,652
Hokuriku Electric Power Co.		30,600		452,380
Kyushu Electric Power Co., Inc. *		91,000		970,528
Osaka Gas Co., Ltd.		432,000		1,833,479
Shikoku Electric Power Co., Inc.		33,700		456,365
The Chugoku Electric Power Co., Inc.		70,000		1,027,693
The Kansai Electric Power Co., Inc. *		151,700		1,524,567
Toho Gas Co., Ltd.		89,000		538,901
Tohoku Electric Power Co., Inc.		101,200		1,273,071
Tokyo Electric Power Co., Inc. *		320,990		1,310,819
Tokyo Gas Co., Ltd.		482,201		2,782,685
				15,021,109
				635,108,196

See financial notes 69

 Schwab International Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Netherlands 2.7%
Banks 0.4%
ING Groep N.V. CVA *		825,158		12,659,194
Capital Goods 0.2%
Koninklijke Boskalis Westminster N.V.		18,315		951,658
Koninklijke Philips N.V.		200,724		5,749,587
				6,701,245
Commercial & Professional Supplies 0.1%
Randstad Holding N.V.		27,267		1,626,225
Energy 0.0%
Koninklijke Vopak N.V.		13,531		710,213
Food & Staples Retailing 0.1%
Koninklijke Ahold N.V.		186,465		3,612,595
Food, Beverage & Tobacco 0.7%
Heineken Holding N.V.		22,615		1,576,477
Heineken N.V.		48,589		3,827,744
Unilever N.V. CVA		346,859		15,130,197
				20,534,418
Insurance 0.2%
Aegon N.V.		388,764		3,067,308
Delta Lloyd N.V.		45,606		863,635
NN Group N.V. *		35,425		1,032,735
				4,963,678
Materials 0.2%
Akzo Nobel N.V.		51,967		3,976,188
Koninklijke DSM N.V.		36,335		2,072,207
OCI N.V. *		16,510		492,217
				6,540,612
Media 0.3%
Altice S.A. *		18,417		1,951,733
Reed Elsevier N.V.		149,829		3,613,488
Wolters Kluwer N.V.		65,547		2,123,562
				7,688,783
Semiconductors & Semiconductor Equipment 0.3%
ASML Holding N.V.		74,801		8,049,557
Software & Services 0.1%
Gemalto N.V.		16,212		1,506,164
Telecommunication Services 0.1%
Koninklijke (Royal) KPN N.V.		669,771		2,483,347
Transportation 0.0%
TNT Express N.V.		91,819		783,773
				77,859,804
New Zealand 0.1%
Health Care Equipment & Services 0.0%
Ryman Healthcare Ltd.		72,734		451,708
Materials 0.0%
Fletcher Building Ltd.		141,562		896,103
Telecommunication Services 0.0%
Spark New Zealand Ltd.		420,111		950,604
Transportation 0.0%
Auckland International Airport Ltd.		203,237		713,199
Utilities 0.1%
Contact Energy Ltd.		75,447		326,725
Meridian Energy Ltd. *(b)		230,276		353,274
Mighty River Power Ltd.		127,463		292,831
				972,830
				3,984,444
Norway 0.7%
Banks 0.1%
DNB A.S.A. (a)		207,026		3,677,857
Energy 0.3%
Seadrill Ltd.		78,629		1,002,161
Statoil A.S.A.		236,406		5,011,892
Subsea 7 S.A.		64,866		720,521
				6,734,574
Food, Beverage & Tobacco 0.1%
Orkla A.S.A.		181,529		1,425,488
Insurance 0.0%
Gjensidige Forsikring A.S.A. (a)		42,041		731,371
Materials 0.1%
Norsk Hydro A.S.A.		292,622		1,385,799
Yara International A.S.A.		38,087		1,951,481
				3,337,280
Telecommunication Services 0.1%
Telenor A.S.A.		157,264		3,551,834
				19,458,404
Portugal 0.1%
Banks 0.0%
Banco Comercial Portugues S.A., Class R *(a)		7,149,000		711,905
Banco Espirito Santo S.A. - Reg’d *(b)(c)		470,491		—
				711,905
Energy 0.0%
Galp Energia, SGPS, S.A.		78,082		1,066,574
Food & Staples Retailing 0.0%
Jeronimo Martins, SGPS, S.A.		49,264		718,634
Utilities 0.1%
EDP - Energias de Portugal S.A.		483,636		1,933,769
				4,430,882
Singapore 1.5%
Banks 0.6%
DBS Group Holdings Ltd.		373,346		5,932,606
Oversea-Chinese Banking Corp., Ltd.		639,171		5,147,164
United Overseas Bank Ltd.		275,733		5,091,405
				16,171,175
Capital Goods 0.2%
Keppel Corp., Ltd.		313,000		2,055,854
Noble Group Ltd.		858,000		558,744
Sembcorp Industries Ltd.		200,000		681,580

70 See financial notes

 Schwab International Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Sembcorp Marine Ltd. (a)		152,000		339,975
Singapore Technologies Engineering Ltd.		316,000		862,672
Yangzijiang Shipbuilding Holdings Ltd.		431,000		475,956
				4,974,781
Consumer Services 0.0%
Genting Singapore plc		1,293,300		999,217
Diversified Financials 0.0%
Singapore Exchange Ltd.		163,000		1,047,737
Food, Beverage & Tobacco 0.1%
Golden Agri-Resources Ltd.		1,652,500		522,772
Wilmar International Ltd.		390,000		957,888
				1,480,660
Media 0.0%
Singapore Press Holdings Ltd.		350,600		1,109,499
Real Estate 0.3%
Ascendas Real Estate Investment Trust		456,400		850,535
CapitaCommercial Trust		452,900		579,073
CapitaLand Ltd.		512,000		1,424,811
CapitaMall Trust		542,800		896,238
City Developments Ltd.		105,900		852,066
Global Logistic Properties Ltd.		634,000		1,314,941
Suntec Real Estate Investment Trust		459,000		612,753
UOL Group Ltd. (a)		95,000		571,234
				7,101,651
Retailing 0.0%
Jardine Cycle & Carriage Ltd.		22,000		670,366
Telecommunication Services 0.2%
Singapore Telecommunications Ltd.		1,724,537		5,762,706
StarHub Ltd.		129,000		411,928
				6,174,634
Transportation 0.1%
ComfortDelGro Corp., Ltd.		408,000		945,191
Hutchison Port Holdings Trust, Class U		1,227,600		827,108
Singapore Airlines Ltd.		111,000		1,022,774
				2,795,073
				42,524,793
Spain 3.5%
Banks 1.6%
Banco Bilbao Vizcaya Argentaria S.A.		1,350,658		13,571,516
Banco de Sabadell S.A. *		923,091		2,468,763
Banco Popular Espanol S.A.		377,908		1,966,275
Banco Santander S.A.		2,995,632		22,648,680
Bankia S.A. *		1,025,002		1,431,425
Bankinter S.A.		147,447		1,115,108
CaixaBank S.A.		475,218		2,383,480
				45,585,247
Capital Goods 0.1%
ACS, Actividades de Construccion y Servicios S.A.		37,001		1,303,757
Ferrovial S.A.		88,266		2,001,690
Zardoya Otis S.A.		32,048		413,170
				3,718,617
Energy 0.2%
Repsol S.A.		224,732		4,632,613
Food & Staples Retailing 0.0%
Distribuidora Internacional de Alimentacion S.A.		135,669		1,086,555
Insurance 0.0%
Mapfre S.A.		173,768		645,739
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Grifols S.A.		31,577		1,339,862
Retailing 0.3%
Inditex S.A.		229,986		7,380,033
Software & Services 0.1%
Amadeus IT Holding S.A., A Shares		93,667		4,269,523
Telecommunication Services 0.5%
Telefonica S.A.		952,175		14,492,521
Transportation 0.2%
Abertis Infraestructuras S.A.		88,178		1,624,857
Aena S.A. *		13,047		1,229,267
International Consolidated Airlines Group S.A. *		194,400		1,621,527
				4,475,651
Utilities 0.5%
Enagas S.A.		43,246		1,331,878
Endesa S.A.		69,660		1,380,194
Gas Natural SDG S.A.		75,382		1,853,498
Iberdrola S.A.		1,097,665		7,346,987
Red Electrica Corp. S.A.		23,030		1,932,788
				13,845,345
				101,471,706
Sweden 3.0%
Banks 0.8%
Nordea Bank AB		649,513		8,252,156
Skandinaviska Enskilda Banken AB, A Shares		320,503		4,050,091
Svenska Handelsbanken AB, A Shares		107,000		4,939,005
Swedbank AB, A Shares		195,297		4,541,178
				21,782,430
Capital Goods 0.8%
Alfa Laval AB		63,558		1,186,367
Assa Abloy AB, B Shares		71,491		4,147,464
Atlas Copco AB, A Shares		144,594		4,513,210
Atlas Copco AB, B Shares		81,775		2,276,981
Sandvik AB		227,385		2,873,936
Skanska AB, B Shares		80,665		1,795,052
SKF AB, B Shares		85,821		2,096,182

See financial notes 71

 Schwab International Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Volvo AB, B Shares		324,228		4,479,272
				23,368,464
Commercial & Professional Supplies 0.0%
Securitas AB, B Shares		64,419		963,359
Consumer Durables & Apparel 0.1%
Electrolux AB, B Shares		51,441		1,540,278
Husqvarna AB, B Shares		76,291		564,299
				2,104,577
Diversified Financials 0.2%
Industrivarden AB, C Shares		32,236		671,662
Investment AB Kinnevik, B Shares		50,660		1,745,890
Investor AB, B Shares		97,539		3,974,490
				6,392,042
Energy 0.0%
Lundin Petroleum AB *		49,912		807,915
Food & Staples Retailing 0.0%
ICA Gruppen AB (a)		14,951		555,638
Food, Beverage & Tobacco 0.0%
Swedish Match AB		39,951		1,229,855
Health Care Equipment & Services 0.1%
Elekta AB, B Shares (a)		84,063		786,828
Getinge AB, B Shares		41,359		1,005,225
				1,792,053
Household & Personal Products 0.1%
Svenska Cellulosa AB, S.C.A., B Shares		126,274		3,194,096
Materials 0.1%
Boliden AB		59,204		1,286,247
Retailing 0.3%
Hennes & Mauritz AB, B Shares (a)		203,154		8,076,739
Technology Hardware & Equipment 0.3%
Hexagon AB, B Shares		54,544		2,020,320
Telefonaktiebolaget LM Ericsson, B Shares		643,465		7,037,433
				9,057,753
Telecommunication Services 0.2%
Millicom International Cellular S.A. SDR		13,121		1,023,659
Tele2 AB, B Shares		74,695		996,265
TeliaSonera AB		554,797		3,449,245
				5,469,169
				86,080,337
Switzerland 9.0%
Capital Goods 0.5%
ABB Ltd. - Reg’d *		466,921		10,231,375
Geberit AG - Reg’d		8,141		2,883,324
Schindler Holding AG		9,794		1,656,830
Schindler Holding AG - Reg’d		4,537		755,801
Sulzer AG - Reg’d		4,467		498,464
				16,025,794
Commercial & Professional Supplies 0.2%
Adecco S.A. - Reg’d *		36,470		2,972,184
SGS S.A. - Reg’d		1,141		2,210,797
				5,182,981
Consumer Durables & Apparel 0.5%
Cie Financiere Richemont S.A. - Reg’d		111,550		9,942,776
The Swatch Group AG - Bearer Shares		6,558		2,931,788
The Swatch Group AG - Reg’d		9,817		869,836
				13,744,400
Diversified Financials 1.0%
Credit Suisse Group AG - Reg’d *		326,108		8,631,119
Julius Baer Group Ltd. *		46,998		2,459,910
Pargesa Holding S.A.		5,743		418,305
Partners Group Holding AG		3,841		1,203,907
UBS Group AG *		780,354		15,589,388
				28,302,629
Energy 0.0%
Transocean Ltd. (a)		73,823		1,322,452
Food, Beverage & Tobacco 2.0%
Aryzta AG *		19,166		1,293,266
Barry Callebaut AG - Reg’d *		419		508,297
Chocoladefabriken Lindt & Sprungli AG		209		1,142,086
Chocoladefabriken Lindt & Sprungli AG - Reg’d		21		1,350,805
Nestle S.A. - Reg’d		686,561		53,266,294
				57,560,748
Health Care Equipment & Services 0.1%
Sonova Holding AG - Reg’d		11,733		1,620,969
Insurance 0.6%
Baloise Holding AG - Reg’d		9,340		1,215,472
Swiss Life Holding AG - Reg’d *		7,056		1,674,395
Swiss Re AG		74,973		6,650,657
Zurich Insurance Group AG *		31,979		9,870,419
				19,410,943
Materials 0.6%
EMS-Chemie Holding AG - Reg’d		1,753		735,717
Givaudan S.A. - Reg’d *		2,014		3,768,545
Holcim Ltd. - Reg’d *		49,745		3,996,040
Sika AG		468		1,606,337
Syngenta AG - Reg’d		19,563		6,546,357
				16,652,996
Pharmaceuticals, Biotechnology & Life Sciences 3.3%
Actelion Ltd. - Reg’d *		21,604		2,842,670
Lonza Group AG - Reg’d *		11,058		1,563,491
Novartis AG - Reg’d		489,732		49,987,982
Roche Holding AG		149,591		42,806,227
				97,200,370
Real Estate 0.0%
Swiss Prime Site AG - Reg’d *		12,781		1,120,605
Telecommunication Services 0.1%
Swisscom AG - Reg’d		5,051		3,002,850

72 See financial notes

 Schwab International Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Transportation 0.1%
Kuehne & Nagel International AG - Reg’d		11,020		1,652,828
				262,800,565
United Kingdom 20.0%
Automobiles & Components 0.1%
GKN plc		358,453		1,922,594
Banks 2.8%
Barclays plc		3,512,415		13,742,147
HSBC Holdings plc		4,078,664		40,743,804
Lloyds Banking Group plc		12,140,871		14,378,150
Royal Bank of Scotland Group plc *		529,260		2,742,109
Standard Chartered plc		526,997		8,628,100
				80,234,310
Capital Goods 1.0%
Ashtead Group plc		105,027		1,800,957
BAE Systems plc		678,233		5,254,409
Bunzl plc		74,222		2,086,919
Cobham plc		235,836		1,069,845
IMI plc		60,653		1,162,268
Meggitt plc		180,146		1,455,827
Melrose Industries plc		217,979		884,556
Rolls-Royce Holdings plc *		399,829		6,374,434
Smiths Group plc		82,981		1,452,701
The Weir Group plc		45,373		1,304,495
Travis Perkins plc		54,666		1,737,568
Wolseley plc		56,069		3,316,165
				27,900,144
Commercial & Professional Supplies 0.4%
Aggreko plc		53,732		1,355,398
Babcock International Group plc		50,186		774,165
Capita plc		142,984		2,502,675
Experian plc		209,475		3,741,280
G4S plc		338,396		1,517,880
Intertek Group plc		33,139		1,324,417
				11,215,815
Consumer Durables & Apparel 0.1%
Burberry Group plc		95,325		2,541,269
Persimmon plc *		66,446		1,725,226
				4,266,495
Consumer Services 0.6%
Carnival plc		39,824		1,811,879
Compass Group plc		358,321		6,334,296
InterContinental Hotels Group plc		50,097		2,142,423
Merlin Entertainments plc		147,259		983,913
TUI AG		96,212		1,794,033
Whitbread plc		38,760		3,112,401
William Hill plc		174,467		963,950
				17,142,895
Diversified Financials 0.3%
3i Group plc		203,179		1,573,974
Aberdeen Asset Management plc		203,474		1,477,520
Hargreaves Lansdown plc		47,776		897,462
ICAP plc		115,235		979,697
Investec plc		113,844		1,087,084
London Stock Exchange Group plc		66,825		2,601,190
Schroders plc		27,532		1,365,541
				9,982,468
Energy 3.0%
Amec Foster Wheeler plc		78,452		1,098,421
BG Group plc		727,105		13,170,446
BP plc		3,887,502		28,038,199
Petrofac Ltd.		49,680		663,092
Royal Dutch Shell plc, A Shares		836,285		26,368,262
Royal Dutch Shell plc, B Shares		515,661		16,509,294
Tullow Oil plc		182,042		1,155,796
				87,003,510
Food & Staples Retailing 0.3%
J. Sainsbury plc		259,537		1,079,175
Tesco plc		1,713,260		5,774,829
WM Morrison Supermarkets plc		457,740		1,305,144
				8,159,148
Food, Beverage & Tobacco 2.6%
Associated British Foods plc		75,841		3,311,082
British American Tobacco plc		397,542		21,842,380
Coca-Cola HBC AG CDI *		40,964		864,206
Diageo plc		535,827		14,875,821
Imperial Tobacco Group plc		204,637		9,992,526
SABMiller plc		207,214		10,968,432
Tate & Lyle plc		103,776		950,201
Unilever plc		273,177		11,974,563
				74,779,211
Health Care Equipment & Services 0.1%
Smith & Nephew plc		190,923		3,249,396
Household & Personal Products 0.4%
Reckitt Benckiser Group plc		137,655		12,251,897
Insurance 1.2%
Admiral Group plc		40,261		960,050
Aviva plc		854,060		6,871,302
Direct Line Insurance Group plc		301,382		1,471,361
Legal & General Group plc		1,271,763		5,055,353
Old Mutual plc		1,044,705		3,747,481
Prudential plc		546,837		13,614,885
RSA Insurance Group plc		226,227		1,479,921
Standard Life plc		421,318		3,011,667
				36,212,020
Materials 1.6%
Anglo American plc		300,800		5,096,307
Antofagasta plc		88,778		1,062,609
BHP Billiton plc		450,205		10,821,335
Croda International plc		27,826		1,207,556
Fresnillo plc		41,090		455,731
Glencore plc *		2,374,247		11,279,020
Johnson Matthey plc		43,511		2,224,665
Randgold Resources Ltd.		19,342		1,471,938
Rexam plc		142,363		1,263,583

See financial notes 73

 Schwab International Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Rio Tinto plc		270,648		12,111,783
				46,994,527
Media 0.7%
ITV plc		813,516		3,158,486
Pearson plc		173,447		3,505,167
Reed Elsevier plc		239,958		3,971,385
Sky plc		219,682		3,622,103
WPP plc		281,659		6,568,702
				20,825,843
Pharmaceuticals, Biotechnology & Life Sciences 1.8%
AstraZeneca plc		268,805		18,447,170
GlaxoSmithKline plc		1,034,317		23,889,275
Shire plc		125,500		10,198,574
				52,535,019
Real Estate 0.3%
Hammerson plc		169,520		1,736,825
Intu Properties plc		185,106		971,071
Land Securities Group plc		170,121		3,255,524
Segro plc		150,608		989,412
The British Land Co., plc		209,672		2,670,449
				9,623,281
Retailing 0.4%
Dixons Carphone plc		198,502		1,288,244
Kingfisher plc		493,275		2,650,133
Marks & Spencer Group plc		354,639		3,003,260
Next plc		32,320		3,633,751
Sports Direct International plc *		64,748		612,025
				11,187,413
Semiconductors & Semiconductor Equipment 0.2%
ARM Holdings plc		296,518		5,038,249
Software & Services 0.1%
The Sage Group plc		239,344		1,779,571
Telecommunication Services 1.1%
BT Group plc		1,742,899		12,155,995
Inmarsat plc		94,248		1,451,284
Vodafone Group plc		5,637,712		19,862,821
				33,470,100
Transportation 0.1%
easyJet plc		31,365		867,263
Royal Mail plc		128,631		919,009
				1,786,272
Utilities 0.8%
Centrica plc		1,044,954		4,080,008
National Grid plc		799,894		10,761,246
Severn Trent plc		47,876		1,559,027
SSE plc		206,776		4,899,289
United Utilities Group plc		147,060		2,187,694
				23,487,264
				581,047,442
Total Common Stock
(Cost $2,224,135,874)				2,846,224,974
Preferred Stock 0.7% of net assets
Germany 0.7%
Automobiles & Components 0.5%
Bayerische Motoren Werke AG		12,237		1,118,202
Porsche Automobil Holding SE		32,577		3,091,012
Volkswagen AG		34,769		8,951,127
				13,160,341
Household & Personal Products 0.2%
Henkel AG & Co. KGaA		37,113		4,310,949
Materials 0.0%
Fuchs Petrolub SE		16,120		679,029
				18,150,319
Italy 0.0%
Banks 0.0%
Intesa Sanpaolo S.p.A. - RSP		209,571		637,865
United Kingdom 0.0%
Capital Goods 0.0%
Rolls-Royce Holdings plc, C Shares *(b)(c)		56,375,889		86,537
Total Preferred Stock
(Cost $13,594,358)				18,874,721
Rights 0.0% of net assets
Italy 0.0%
Insurance 0.0%
UnipolSai S.p.A., Class A - RSP *(b)(c)		172,787		—
UnipolSai S.p.A., Class B - RSP *(b)(c)		172,787		—
				—
Spain 0.0%
Banks 0.0%
Banco Popular Espanol S.A. *		377,668		7,209
Banco Santander S.A. *(b)		2,895,056		477,433
				484,642
Total Rights
(Cost $469,760)				484,642

74 See financial notes

 Schwab International Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Other Investment Company 1.1% of net assets
United States 1.1%
Securities Lending Collateral 1.1%
Wells Fargo Advantage Government Money Market Fund, Institutional Class 0.01% (d)		32,768,230		32,768,230
Total Other Investment Company
(Cost $32,768,230)				32,768,230
Security	Face Amount		Value
Rate, Maturity Date	Local Currency		($)
Short-Term Investments 0.7% of net assets
Time Deposits 0.7%
Australia & New Zealand Banking Group Ltd.
Pound Sterling
0.08%, 05/01/15		453,046		695,425
Brown Brothers Harriman
Swiss Franc
(1.00)%, 05/04/15		1,385,749		1,485,341
Japanese Yen
0.01%, 05/01/15		1,712,836		14,345
Singapore Dollar
0.01%, 05/04/15		1,366		1,033
Australian Dollar
1.21%, 05/01/15		13		10
DNB
Swedish Krona
(0.36)%, 05/04/15		591,514		70,982
Euro
(0.19)%, 05/04/15		1,739,734		1,953,460
JPMorgan Chase Bank
US Dollar
0.03%, 05/01/15		16,488,617		16,488,617
Total Short-Term Investments
(Cost $20,709,213)				20,709,213
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $2,300,699,841 and the unrealized appreciation and depreciation were $732,405,611 and ($114,043,672), respectively, with a net unrealized appreciation of $618,361,939.

At 04/30/15, the values of certain foreign securities held by the fund aggregating $2,847,108,705 were adjusted from their closing market values in accordance with international fair valuation procedures approved by the fund’s Board of Trustees. (See financial note 2(a) for additional information).

*	Non-income producing security.
(a)	All or a portion of this security is on loan. Securities on loan were valued at $30,774,448.
(b)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(c)	Illiquid security. At the period end, the value of these amounted to $86,537 or 0.0% of net assets.
(d)	The rate shown is the 7-day yield.

CDI —	CHESS Depositary Interest
CVA —	Dutch Certificate
Reg’d —	Registered
REIT —	Real Estate Investment Trust
RSP —	Risparmio (Convertible Savings Shares)
SDR —	Swedish Depositary Receipt

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Depreciation
	Contracts		($)		($)
Futures Contracts
MSCI EAFE, e-mini, Long, expires 06/19/15		210		19,889,100		(103,717	)

See financial notes 75

 Schwab Fundamental US Large Company Index Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	99	.1%	Common Stock		3,840,283,826		5,034,584,197
	1	.2%	Other Investment Companies		60,915,618		60,915,618
	100	.3%	Total Investments		3,901,199,444		5,095,499,815
	(0	.3%)	Other Assets and Liabilities, Net				(14,998,784	)
	100	.0%	Net Assets				5,080,501,031

	Number		Value
Security	of Shares		($)
Common Stock 99.1% of net assets
Automobiles & Components 1.2%
BorgWarner, Inc.		40,267		2,383,806
Dana Holding Corp.		60,700		1,309,299
Ford Motor Co.		993,041		15,690,048
General Motors Co.		540,568		18,952,314
Harley-Davidson, Inc.		41,454		2,330,129
Johnson Controls, Inc.		204,709		10,313,240
Lear Corp.		32,100		3,564,063
The Goodyear Tire & Rubber Co.		62,190		1,764,019
TRW Automotive Holdings Corp. *		37,425		3,931,871
Visteon Corp. *		16,000		1,622,400
				61,861,189
Banks 5.4%
Bank of America Corp.		3,467,594		55,238,772
BB&T Corp.		186,375		7,136,299
CIT Group, Inc.		30,900		1,391,427
Citigroup, Inc.		653,472		34,843,127
Comerica, Inc.		37,600		1,782,616
Fifth Third Bancorp		217,990		4,359,800
Hudson City Bancorp, Inc.		190,190		1,768,767
Huntington Bancshares, Inc.		166,527		1,808,483
JPMorgan Chase & Co.		1,084,223		68,587,947
KeyCorp		240,757		3,478,939
M&T Bank Corp.		25,414		3,041,293
New York Community Bancorp, Inc.		137,230		2,358,984
People’s United Financial, Inc.		88,977		1,344,442
Regions Financial Corp.		363,025		3,568,536
SunTrust Banks, Inc.		146,960		6,098,840
The PNC Financial Services Group, Inc.		109,235		10,020,127
U.S. Bancorp		334,660		14,346,874
Wells Fargo & Co.		945,963		52,122,561
Zions Bancorp		48,935		1,386,573
				274,684,407
Capital Goods 7.5%
3M Co.		137,161		21,450,609
AECOM *		73,554		2,321,364
AGCO Corp.		47,540		2,448,785
AMETEK, Inc.		26,400		1,383,888
Armstrong World Industries, Inc. *		27,900		1,527,246
Caterpillar, Inc.		171,837		14,929,199
Cummins, Inc.		45,894		6,345,304
Danaher Corp.		72,056		5,899,945
Deere & Co.		127,093		11,504,458
Dover Corp.		48,975		3,708,387
Eaton Corp. plc		88,916		6,111,197
EMCOR Group, Inc.		35,340		1,577,224
Emerson Electric Co.		247,410		14,555,130
Exelis, Inc.		87,255		2,139,493
Fastenal Co.		43,640		1,859,937
Flowserve Corp.		40,075		2,345,590
Fluor Corp.		92,450		5,559,943
Fortune Brands Home & Security, Inc.		30,100		1,342,460
General Dynamics Corp.		102,016		14,008,837
General Electric Co.		2,567,498		69,527,846
Harsco Corp.		67,235		1,081,139
Honeywell International, Inc.		130,945		13,214,969
Hubbell, Inc., Class B		12,984		1,413,049
Illinois Tool Works, Inc.		101,234		9,473,478
Ingersoll-Rand plc		74,582		4,910,479
Jacobs Engineering Group, Inc. *		69,340		2,971,912
Joy Global, Inc.		38,700		1,650,168
KBR, Inc.		174,100		3,041,527
Kennametal, Inc.		36,200		1,281,842
L-3 Communications Holdings, Inc.		61,866		7,109,022
Lincoln Electric Holdings, Inc.		19,400		1,297,084
Lockheed Martin Corp.		79,584		14,850,374
Masco Corp.		66,060		1,749,929
MRC Global, Inc. *		71,200		1,039,520
Northrop Grumman Corp.		105,733		16,287,111
Orbital ATK, Inc.		19,320		1,413,451
Oshkosh Corp.		41,720		2,246,205
Owens Corning		57,050		2,205,553
PACCAR, Inc.		85,621		5,595,332
Pall Corp.		17,140		1,668,065
Parker-Hannifin Corp.		49,097		5,860,218
Pentair plc		23,337		1,450,395
Precision Castparts Corp.		17,716		3,661,720
Quanta Services, Inc. *		64,100		1,853,131
Raytheon Co.		124,015		12,897,560
Rockwell Automation, Inc.		22,550		2,674,430
Rockwell Collins, Inc.		38,130		3,711,193
Roper Technologies, Inc.		10,300		1,732,151
Snap-on, Inc.		10,700		1,600,185
SPX Corp.		18,436		1,419,572
Stanley Black & Decker, Inc.		35,503		3,504,146
Textron, Inc.		74,020		3,255,400
The Boeing Co.		96,872		13,885,633
The Timken Co.		39,265		1,542,722
Trinity Industries, Inc.		28,400		769,356

See financial notes 1

 Schwab Fundamental US Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
United Rentals, Inc. *		17,800		1,719,124
United Technologies Corp.		243,892		27,742,715
W.W. Grainger, Inc.		15,538		3,860,105
WESCO International, Inc. *		18,200		1,312,948
Xylem, Inc.		38,855		1,438,412
				380,938,167
Commercial & Professional Supplies 0.8%
Cintas Corp.		31,150		2,490,442
Equifax, Inc.		19,430		1,883,350
ManpowerGroup, Inc.		55,390		4,726,429
Nielsen N.V.		37,700		1,694,238
Pitney Bowes, Inc.		99,919		2,235,188
R.R. Donnelley & Sons Co.		183,440		3,415,653
Republic Services, Inc.		97,163		3,947,733
Robert Half International, Inc.		39,310		2,179,739
The ADT Corp.		66,100		2,485,360
The Dun & Bradstreet Corp.		14,540		1,856,322
Tyco International plc		90,887		3,579,130
Waste Management, Inc.		169,714		8,405,934
				38,899,518
Consumer Durables & Apparel 1.1%
Coach, Inc.		146,475		5,596,810
D.R. Horton, Inc.		51,390		1,305,306
Fossil Group, Inc. *		14,600		1,226,108
Garmin Ltd.		37,170		1,679,712
Harman International Industries, Inc.		12,320		1,606,282
Hasbro, Inc.		42,741		3,025,635
Jarden Corp. *		37,872		1,938,289
Leggett & Platt, Inc.		54,717		2,323,831
Mattel, Inc.		123,335		3,473,114
Mohawk Industries, Inc. *		11,735		2,036,023
Newell Rubbermaid, Inc.		61,650		2,350,714
NIKE, Inc., Class B		137,627		13,603,053
NVR, Inc. *		1,529		2,028,203
PVH Corp.		12,400		1,281,540
Ralph Lauren Corp.		18,320		2,444,071
Tupperware Brands Corp.		16,858		1,127,126
VF Corp.		51,280		3,714,210
Whirlpool Corp.		26,955		4,733,298
				55,493,325
Consumer Services 1.7%
Apollo Education Group, Inc. *		114,850		1,927,757
Brinker International, Inc.		26,655		1,475,887
Carnival Corp.		141,510		6,222,195
Chipotle Mexican Grill, Inc. *		2,187		1,358,871
Darden Restaurants, Inc.		51,762		3,300,863
DeVry Education Group, Inc.		33,100		1,000,944
Graham Holdings Co., Class B		1,920		1,964,026
H&R Block, Inc.		61,065		1,846,606
Las Vegas Sands Corp.		40,800		2,157,504
Marriott International, Inc., Class A		29,089		2,328,574
McDonald’s Corp.		330,188		31,879,651
MGM Resorts International *		63,515		1,343,342
Royal Caribbean Cruises Ltd.		35,229		2,397,686
Service Corp. International		60,600		1,677,408
Starbucks Corp.		156,980		7,783,068
Starwood Hotels & Resorts Worldwide, Inc.		31,270		2,687,657
Wyndham Worldwide Corp.		34,440		2,941,176
Wynn Resorts Ltd.		18,604		2,066,346
Yum! Brands, Inc.		97,930		8,418,063
				84,777,624
Diversified Financials 3.1%
Ally Financial, Inc. *		106,200		2,324,718
American Express Co.		182,317		14,120,452
Ameriprise Financial, Inc.		33,034		4,138,500
Berkshire Hathaway, Inc., Class B *		267,426		37,763,225
BlackRock, Inc.		13,300		4,840,402
Capital One Financial Corp.		141,032		11,402,437
CME Group, Inc.		49,200		4,472,772
Discover Financial Services		81,522		4,725,830
E*TRADE Financial Corp. *		59,400		1,710,126
Franklin Resources, Inc.		95,909		4,945,068
Invesco Ltd.		66,600		2,758,572
Legg Mason, Inc.		43,520		2,291,328
Leucadia National Corp.		63,200		1,502,264
McGraw Hill Financial, Inc.		52,868		5,514,132
Moody’s Corp.		18,670		2,007,398
Morgan Stanley		227,383		8,483,660
Northern Trust Corp.		38,910		2,846,267
PHH Corp. *		62,958		1,581,505
State Street Corp.		66,136		5,100,408
T. Rowe Price Group, Inc.		49,345		4,005,827
The Bank of New York Mellon Corp.		179,949		7,619,041
The Charles Schwab Corp. (a)		88,815		2,708,858
The Goldman Sachs Group, Inc.		100,409		19,722,336
The NASDAQ OMX Group, Inc.		33,983		1,652,593
				158,237,719
Energy 14.2%
Alpha Natural Resources, Inc. *(b)		919,200		744,552
Anadarko Petroleum Corp.		105,379		9,916,164
Apache Corp.		154,668		10,579,291
Arch Coal, Inc. *(b)		817,400		796,311
Baker Hughes, Inc.		136,786		9,364,370
Cameron International Corp. *		51,853		2,842,581
Chesapeake Energy Corp. (b)		286,526		4,518,515
Chevron Corp.		1,165,412		129,430,657
Cimarex Energy Co.		10,845		1,349,118
ConocoPhillips		876,282		59,517,073
CONSOL Energy, Inc.		67,635		2,196,785
Denbury Resources, Inc.		160,200		1,411,362
Devon Energy Corp.		174,527		11,904,487
Diamond Offshore Drilling, Inc. (b)		75,520		2,527,654
Dresser-Rand Group, Inc. *		17,200		1,421,924
Energen Corp.		16,910		1,203,485
EOG Resources, Inc.		65,301		6,461,534
EQT Corp.		18,100		1,627,914
Exxon Mobil Corp.		2,571,981		224,713,980
FMC Technologies, Inc. *		42,178		1,860,050
Halliburton Co.		235,570		11,531,152
Helmerich & Payne, Inc.		22,095		1,722,747

2 See financial notes

 Schwab Fundamental US Large Company Index Fund

Portfolio Holdings (Unaudited) continued

		Number		Value
Security		of Shares		($)
Hess Corp.	��		163,304		12,558,078
HollyFrontier Corp.			112,102		4,347,316
Kinder Morgan, Inc.			104,400		4,483,980
Marathon Oil Corp.			413,919		12,872,881
Marathon Petroleum Corp.			151,931		14,975,839
Murphy Oil Corp.			172,250		8,200,823
Nabors Industries Ltd.			183,400		3,062,780
National Oilwell Varco, Inc.			135,701		7,383,491
Newfield Exploration Co. *			45,307		1,777,847
Noble Energy, Inc.			51,870		2,630,846
Occidental Petroleum Corp.			276,700		22,163,670
Oceaneering International, Inc.			18,900		1,041,579
Oil States International, Inc. *			25,800		1,227,822
ONEOK, Inc.			50,120		2,410,772
Patterson-UTI Energy, Inc.			78,700		1,758,945
Peabody Energy Corp. (b)			373,045		1,764,503
Phillips 66			467,808		37,101,852
Pioneer Natural Resources Co.			9,000		1,555,020
QEP Resources, Inc.			73,742		1,659,195
Schlumberger Ltd.			255,163		24,140,971
SEACOR Holdings, Inc. *			17,700		1,286,082
Seadrill Ltd. (b)			269,200		3,523,828
Southwestern Energy Co. *			63,040		1,767,011
Spectra Energy Corp.			147,060		5,477,985
Tesoro Corp.			84,892		7,286,280
The Williams Cos., Inc.			94,509		4,837,916
Valero Energy Corp.			428,666		24,391,095
Western Refining, Inc.			33,500		1,475,675
World Fuel Services Corp.			91,100		5,056,050
WPX Energy, Inc. *			167,591		2,304,376
					722,166,214
Food & Staples Retailing 4.2%
Casey’s General Stores, Inc.			18,712		1,537,752
Costco Wholesale Corp.			169,863		24,298,902
CVS Health Corp.			500,816		49,726,021
SUPERVALU, Inc. *			164,820		1,448,768
Sysco Corp.			316,239		11,710,330
The Kroger Co.			245,834		16,940,421
United Natural Foods, Inc. *			18,100		1,221,026
Wal-Mart Stores, Inc.			945,672		73,809,700
Walgreens Boots Alliance, Inc.			344,182		28,543,013
Whole Foods Market, Inc.			92,100		4,398,696
					213,634,629
Food, Beverage & Tobacco 5.3%
Altria Group, Inc.			445,016		22,273,051
Archer-Daniels-Midland Co.			400,774		19,589,833
Brown-Forman Corp., Class B			25,677		2,316,836
Bunge Ltd.			137,136		11,844,436
Campbell Soup Co.			62,530		2,795,716
Coca-Cola Enterprises, Inc.			104,995		4,662,828
ConAgra Foods, Inc.			175,720		6,352,278
Constellation Brands, Inc., Class A *			16,220		1,880,547
Dr Pepper Snapple Group, Inc.			60,441		4,507,690
General Mills, Inc.			184,818		10,227,828
Hormel Foods Corp.			34,039		1,850,020
Ingredion, Inc.			22,600		1,794,440
Kellogg Co.			71,937		4,555,770
Kraft Foods Group, Inc.			125,274		10,616,972
Lorillard, Inc.			97,554		6,815,122
McCormick & Co., Inc. - Non Voting Shares			24,378		1,835,663
Mead Johnson Nutrition Co.			15,200		1,457,984
Molson Coors Brewing Co., Class B			24,780		1,821,578
Mondelez International, Inc., Class A			428,495		16,441,353
Monster Beverage Corp. *			14,300		1,960,673
PepsiCo, Inc.			383,363		36,465,489
Philip Morris International, Inc.			514,588		42,952,660
Reynolds American, Inc.			84,527		6,195,829
The Coca-Cola Co.			845,643		34,299,280
The Hershey Co.			22,012		2,023,343
The JM Smucker Co.			37,525		4,349,898
Tyson Foods, Inc., Class A			166,615		6,581,293
					268,468,410
Health Care Equipment & Services 5.9%
Abbott Laboratories			257,963		11,974,642
Aetna, Inc.			146,791		15,687,554
AmerisourceBergen Corp.			89,067		10,180,358
Anthem, Inc.			232,650		35,113,865
Baxter International, Inc.			160,053		11,002,043
Becton, Dickinson & Co.			65,362		9,207,545
Boston Scientific Corp. *			332,665		5,928,090
C.R. Bard, Inc.			20,300		3,381,574
Cardinal Health, Inc.			164,967		13,913,317
Catamaran Corp. *			26,700		1,584,645
Cigna Corp.			39,909		4,974,258
Community Health Systems, Inc. *			58,062		3,116,768
DaVita HealthCare Partners, Inc. *			28,420		2,304,862
DENTSPLY International, Inc.			24,735		1,261,485
Express Scripts Holding Co. *			149,707		12,934,685
HCA Holdings, Inc. *			170,574		12,624,182
Health Net, Inc. *			70,170		3,694,451
Henry Schein, Inc. *			21,252		2,913,649
Humana, Inc.			72,270		11,967,912
Intuitive Surgical, Inc. *			2,479		1,229,534
Laboratory Corp. of America Holdings *			24,699		2,953,012
LifePoint Hospitals, Inc. *			20,730		1,552,262
Magellan Health, Inc. *			24,100		1,525,530
McKesson Corp.			85,217		19,037,478
Medtronic plc			301,036		22,412,130
Omnicare, Inc.			39,210		3,449,696
Owens & Minor, Inc.			60,802		2,050,243
Patterson Cos., Inc.			33,275		1,562,428
Quest Diagnostics, Inc.			72,452		5,174,522
St. Jude Medical, Inc.			77,360		5,419,068
Stryker Corp.			68,618		6,329,324
Tenet Healthcare Corp. *			36,893		1,765,699
UnitedHealth Group, Inc.			379,696		42,298,134
Universal Health Services, Inc., Class B			15,448		1,806,644
Varian Medical Systems, Inc. *			22,003		1,954,967
WellCare Health Plans, Inc. *			19,600		1,517,628
Zimmer Holdings, Inc.			50,224		5,516,604
					301,320,788

See financial notes 3

 Schwab Fundamental US Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Household & Personal Products 2.1%
Avon Products, Inc.		332,525		2,716,729
Church & Dwight Co., Inc.		20,900		1,696,453
Colgate-Palmolive Co.		192,868		12,976,159
Energizer Holdings, Inc.		12,320		1,683,158
Herbalife Ltd. *(b)		36,500		1,515,480
Kimberly-Clark Corp.		91,901		10,080,621
The Clorox Co.		33,920		3,598,912
The Estee Lauder Cos., Inc., Class A		31,234		2,539,012
The Procter & Gamble Co.		893,635		71,052,919
				107,859,443
Insurance 3.1%
ACE Ltd.		65,404		6,997,574
Aflac, Inc.		127,098		8,012,258
American Financial Group, Inc.		26,840		1,696,288
American International Group, Inc.		156,242		8,794,862
Aon plc		48,936		4,709,111
Arch Capital Group Ltd. *		44,975		2,729,083
Assurant, Inc.		46,955		2,885,854
Axis Capital Holdings Ltd.		51,550		2,683,693
Cincinnati Financial Corp.		40,780		2,065,099
Everest Re Group Ltd.		13,925		2,491,322
FNF Group		67,684		2,435,947
Genworth Financial, Inc., Class A *		193,100		1,697,349
HCC Insurance Holdings, Inc.		30,900		1,760,064
Lincoln National Corp.		42,680		2,410,993
Loews Corp.		127,189		5,296,150
Marsh & McLennan Cos., Inc.		95,720		5,375,635
MetLife, Inc.		158,918		8,150,904
PartnerRe Ltd.		25,756		3,296,768
Principal Financial Group, Inc.		44,871		2,293,806
Prudential Financial, Inc.		84,837		6,922,699
Reinsurance Group of America, Inc.		19,100		1,749,942
RenaissanceRe Holdings Ltd.		26,425		2,708,298
The Allstate Corp.		114,843		7,999,964
The Chubb Corp.		109,429		10,762,342
The Hartford Financial Services Group, Inc.		144,227		5,880,135
The Progressive Corp.		226,945		6,050,354
The Travelers Cos., Inc.		242,872		24,556,788
Torchmark Corp.		38,965		2,186,326
Unum Group		110,725		3,782,366
W. R. Berkley Corp.		45,363		2,222,334
White Mountains Insurance Group Ltd.		3,029		2,047,513
XL Group plc		55,885		2,072,216
				154,724,037
Materials 3.9%
Air Products & Chemicals, Inc.		45,085		6,466,542
Airgas, Inc.		20,900		2,116,752
Albemarle Corp.		30,585		1,825,925
Alcoa, Inc.		459,630		6,168,235
Allegheny Technologies, Inc.		50,611		1,720,268
AptarGroup, Inc.		17,900		1,111,053
Ashland, Inc.		17,535		2,215,723
Avery Dennison Corp.		39,000		2,168,010
Ball Corp.		47,680		3,500,189
Bemis Co., Inc.		42,138		1,896,210
Celanese Corp., Series A		28,700		1,904,532
CF Industries Holdings, Inc.		13,471		3,872,508
Cliffs Natural Resources, Inc. (b)		322,200		1,913,868
Commercial Metals Co.		100,245		1,664,067
Crown Holdings, Inc. *		24,400		1,323,944
Domtar Corp.		67,182		2,903,606
E.I. du Pont de Nemours & Co.		173,686		12,713,815
Eastman Chemical Co.		38,620		2,943,616
Ecolab, Inc.		25,591		2,865,680
FMC Corp.		28,280		1,677,287
Freeport-McMoRan, Inc.		615,340		14,318,962
Huntsman Corp.		69,415		1,600,016
International Flavors & Fragrances, Inc.		12,235		1,403,966
International Paper Co.		149,593		8,036,136
LyondellBasell Industries N.V., Class A		151,580		15,691,562
MeadWestvaco Corp.		54,440		2,656,672
Monsanto Co.		84,669		9,648,879
Newmont Mining Corp.		353,111		9,353,910
Nucor Corp.		152,016		7,427,502
Owens-Illinois, Inc. *		62,945		1,505,015
Packaging Corp. of America		16,521		1,143,088
PPG Industries, Inc.		27,200		6,026,432
Praxair, Inc.		65,695		8,010,191
Reliance Steel & Aluminum Co.		43,920		2,842,502
Rock-Tenn Co., Class A		25,200		1,587,096
RPM International, Inc.		30,365		1,443,552
Sealed Air Corp.		45,275		2,064,540
Sigma-Aldrich Corp.		19,030		2,643,648
Sonoco Products Co.		39,855		1,781,120
Southern Copper Corp. (b)		60,197		1,961,218
Steel Dynamics, Inc.		113,250		2,506,222
The Dow Chemical Co.		322,268		16,435,668
The Mosaic Co.		156,031		6,865,364
The Sherwin-Williams Co.		10,265		2,853,670
The Valspar Corp.		20,750		1,682,825
United States Steel Corp.		110,204		2,647,100
Vulcan Materials Co.		22,723		1,943,271
				199,051,957
Media 3.7%
Cablevision Systems Corp., Class A		116,965		2,336,961
CBS Corp., Class B - Non Voting Shares		131,621		8,177,613
Charter Communications, Inc., Class A *		16,600		3,105,196
Comcast Corp., Class A		499,157		28,831,308
DIRECTV *		228,555		20,731,081
Discovery Communications, Inc., Class A *		118,941		3,848,931
Discovery Communications, Inc., Class C *		90,367		2,731,794
DISH Network Corp., Class A *		34,735		2,350,170
Gannett Co., Inc.		86,430		2,966,278
News Corp., Class A *		199,600		3,149,688
Omnicom Group, Inc.		78,313		5,932,993

4 See financial notes

 Schwab Fundamental US Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Scripps Networks Interactive, Inc., Class A		21,400		1,495,004
The Interpublic Group of Cos., Inc.		107,605		2,242,488
The Walt Disney Co.		318,262		34,601,445
Thomson Reuters Corp.		126,357		5,188,218
Time Warner Cable, Inc.		90,801		14,121,371
Time Warner, Inc.		278,833		23,536,294
Twenty-First Century Fox, Inc., Class A		377,721		12,872,732
Viacom, Inc., Class B		162,498		11,285,486
				189,505,051
Pharmaceuticals, Biotechnology & Life Sciences 5.8%
AbbVie, Inc.		160,222		10,359,955
Actavis plc *		15,840		4,480,502
Agilent Technologies, Inc.		67,336		2,785,690
Amgen, Inc.		176,523		27,874,747
Biogen, Inc. *		13,050		4,879,786
Bristol-Myers Squibb Co.		342,761		21,844,159
Celgene Corp. *		48,656		5,257,767
Eli Lilly & Co.		264,181		18,986,688
Endo International plc *		21,000		1,765,365
Gilead Sciences, Inc. *		116,387		11,698,057
Hospira, Inc. *		28,550		2,492,130
Johnson & Johnson		576,907		57,229,174
Merck & Co., Inc.		643,762		38,342,465
Mettler-Toledo International, Inc. *		5,100		1,616,751
Mylan N.V. *		57,475		4,153,144
Pfizer, Inc.		2,036,404		69,095,188
Thermo Fisher Scientific, Inc.		50,445		6,339,928
Waters Corp. *		14,800		1,852,812
Zoetis, Inc.		65,800		2,922,836
				293,977,144
Real Estate 1.3%
American Capital Agency Corp.		57,900		1,194,767
American Tower Corp.		28,765		2,719,156
Annaly Capital Management, Inc.		494,661		4,981,236
Apartment Investment & Management Co., Class A		33,354		1,258,446
AvalonBay Communities, Inc.		10,299		1,692,538
Boston Properties, Inc.		16,490		2,181,792
Communications Sales & Leasing, Inc. *		89,260		2,684,941
Crown Castle International Corp.		20,580		1,719,047
Equity Residential		39,145		2,891,250
General Growth Properties, Inc.		59,100		1,619,340
HCP, Inc.		63,865		2,573,121
Health Care REIT, Inc.		22,800		1,642,056
Hospitality Properties Trust		50,961		1,532,907
Host Hotels & Resorts, Inc.		101,678		2,047,795
Iron Mountain, Inc.		58,579		2,020,390
Kimco Realty Corp.		60,860		1,466,726
Plum Creek Timber Co., Inc.		45,895		1,936,769
Prologis, Inc.		44,100		1,772,820
Public Storage		15,130		2,843,078
Rayonier, Inc.		47,202		1,207,899
Simon Property Group, Inc.		30,011		5,446,696
The Macerich Co.		18,397		1,504,139
Ventas, Inc.		37,178		2,561,564
Vornado Realty Trust		28,941		2,995,104
Weyerhaeuser Co.		304,042		9,580,363
				64,073,940
Retailing 5.3%
Aaron’s, Inc.		42,000		1,428,000
Abercrombie & Fitch Co., Class A		69,978		1,573,105
Advance Auto Parts, Inc.		11,145		1,593,735
Amazon.com, Inc. *		17,250		7,275,705
American Eagle Outfitters, Inc.		169,835		2,702,075
AutoNation, Inc. *		30,200		1,858,810
AutoZone, Inc. *		3,721		2,502,968
Bed Bath & Beyond, Inc. *		89,205		6,285,384
Best Buy Co., Inc.		256,276		8,879,963
Big Lots, Inc.		47,365		2,158,423
CarMax, Inc. *		35,307		2,404,760
Core-Mark Holding Co., Inc.		27,065		1,426,596
CST Brands, Inc.		119,300		4,976,003
Dick’s Sporting Goods, Inc.		32,500		1,763,450
Dillard’s, Inc., Class A		14,175		1,865,288
Dollar General Corp.		75,300		5,475,063
Dollar Tree, Inc. *		56,434		4,312,122
Expedia, Inc.		14,465		1,363,037
Family Dollar Stores, Inc.		27,162		2,122,439
Foot Locker, Inc.		46,295		2,752,238
GameStop Corp., Class A (b)		103,990		4,007,775
Genuine Parts Co.		51,700		4,645,245
Guess?, Inc.		61,000		1,116,910
J.C. Penney Co., Inc. *(b)		550,210		4,566,743
Kohl’s Corp.		168,045		12,040,424
L Brands, Inc.		61,320		5,479,555
Liberty Interactive Corp., Class A *		126,525		3,638,859
Lowe’s Cos., Inc.		425,045		29,268,599
Macy’s, Inc.		118,236		7,641,593
Murphy USA, Inc. *		101,500		6,630,995
Nordstrom, Inc.		42,755		3,230,568
O’Reilly Automotive, Inc. *		19,630		4,276,003
Rent-A-Center, Inc.		64,170		1,899,432
Ross Stores, Inc.		40,290		3,983,875
Sears Holdings Corp. *(b)		72,349		2,889,619
Signet Jewelers Ltd.		15,900		2,132,667
Staples, Inc.		713,456		11,643,602
Target Corp.		398,983		31,451,830
The Gap, Inc.		135,875		5,386,085
The Home Depot, Inc.		362,943		38,827,642
The Priceline Group, Inc. *		2,084		2,579,596
The TJX Cos., Inc.		177,988		11,487,345
Tiffany & Co.		18,335		1,603,946
Tractor Supply Co.		25,500		2,194,530
Urban Outfitters, Inc. *		36,054		1,443,602
Williams-Sonoma, Inc.		26,645		1,959,207
				270,745,411
Semiconductors & Semiconductor Equipment 2.3%
Altera Corp.		45,650		1,902,692
Analog Devices, Inc.		57,165		3,535,084
Applied Materials, Inc.		320,726		6,347,167
Avago Technologies Ltd.		17,300		2,022,024
Broadcom Corp., Class A		91,027		4,023,848
Intel Corp.		1,926,176		62,697,029

See financial notes 5

 Schwab Fundamental US Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
KLA-Tencor Corp.		43,580		2,562,504
Lam Research Corp.		22,790		1,722,468
Linear Technology Corp.		35,455		1,635,539
Marvell Technology Group Ltd.		166,730		2,335,887
Maxim Integrated Products, Inc.		85,700		2,813,531
Microchip Technology, Inc.		37,380		1,781,344
Micron Technology, Inc. *		131,312		3,693,807
NVIDIA Corp.		89,937		1,996,152
Texas Instruments, Inc.		276,109		14,967,869
Xilinx, Inc.		52,620		2,281,603
				116,318,548
Software & Services 6.9%
Accenture plc, Class A		136,565		12,652,747
Activision Blizzard, Inc.		131,300		2,995,610
Adobe Systems, Inc. *		52,807		4,016,500
Alliance Data Systems Corp. *		8,780		2,610,382
Amdocs Ltd.		53,900		2,968,273
AOL, Inc. *		78,380		3,127,362
Autodesk, Inc. *		25,100		1,426,433
Automatic Data Processing, Inc.		86,319		7,297,408
Booz Allen Hamilton Holding Corp.		51,500		1,416,250
Broadridge Financial Solutions, Inc.		30,500		1,644,560
CA, Inc.		107,205		3,405,903
CACI International, Inc., Class A *		16,024		1,413,958
Citrix Systems, Inc. *		23,563		1,582,491
Cognizant Technology Solutions Corp., Class A *		58,400		3,418,736
Computer Sciences Corp.		69,945		4,507,955
CoreLogic, Inc. *		48,100		1,881,191
eBay, Inc. *		158,527		9,235,783
Electronic Arts, Inc. *		29,708		1,725,738
Facebook, Inc., Class A *		18,400		1,449,368
Fidelity National Information Services, Inc.		78,123		4,881,906
Fiserv, Inc. *		52,038		4,038,149
Google, Inc., Class A *		18,789		10,310,840
Google, Inc., Class C *		18,875		10,142,115
IAC/InterActiveCorp		26,062		1,819,649
International Business Machines Corp.		414,501		70,999,876
Intuit, Inc.		47,022		4,717,717
Leidos Holdings, Inc.		59,100		2,460,924
MasterCard, Inc., Class A		77,738		7,012,745
Microsoft Corp.		2,046,528		99,543,122
Oracle Corp.		697,344		30,418,145
Paychex, Inc.		58,359		2,823,992
Science Applications International Corp.		25,600		1,282,560
Symantec Corp.		214,545		5,347,534
Teradata Corp. *		37,900		1,667,221
The Western Union Co.		264,210		5,358,179
Total System Services, Inc.		44,270		1,751,321
Visa, Inc., Class A		94,812		6,262,333
Xerox Corp.		576,626		6,631,199
Yahoo! Inc. *		93,905		3,997,066
				350,243,241
Technology Hardware & Equipment 4.8%
Amphenol Corp., Class A		48,300		2,674,371
Anixter International, Inc. *		16,220		1,145,132
Apple, Inc.		537,057		67,212,684
Arrow Electronics, Inc. *		73,525		4,390,178
Avnet, Inc.		105,500		4,497,465
Cisco Systems, Inc.		1,509,051		43,505,940
Corning, Inc.		333,071		6,971,176
EMC Corp.		389,143		10,471,838
Harris Corp.		44,325		3,556,638
Hewlett-Packard Co.		1,538,191		50,714,157
Ingram Micro, Inc., Class A *		221,051		5,561,643
Jabil Circuit, Inc.		142,195		3,202,231
Juniper Networks, Inc.		133,170		3,519,683
Lexmark International, Inc., Class A		41,745		1,853,061
Motorola Solutions, Inc.		65,172		3,894,027
NetApp, Inc.		45,830		1,661,337
QUALCOMM, Inc.		194,855		13,250,140
SanDisk Corp.		26,965		1,805,037
SYNNEX Corp.		20,795		1,590,818
Tech Data Corp. *		70,040		3,948,155
Vishay Intertechnology, Inc.		97,740		1,239,343
Western Digital Corp.		42,388		4,143,003
				240,808,057
Telecommunication Services 3.7%
AT&T, Inc.		3,168,331		109,750,986
CenturyLink, Inc.		256,507		9,223,992
Frontier Communications Corp.		616,798		4,231,234
Sprint Corp. *		366,092		1,878,052
Telephone & Data Systems, Inc.		83,527		2,231,006
Verizon Communications, Inc.		1,219,749		61,524,140
Windstream Holdings, Inc.		74,383		868,797
				189,708,207
Transportation 1.6%
Avis Budget Group, Inc. *		43,390		2,349,134
C.H. Robinson Worldwide, Inc.		61,944		3,988,574
CSX Corp.		332,133		11,986,680
Expeditors International of Washington, Inc.		65,325		2,993,845
FedEx Corp.		91,833		15,572,122
Hertz Global Holdings, Inc. *		150,800		3,142,672
J.B. Hunt Transport Services, Inc.		16,245		1,416,564
Kansas City Southern		11,087		1,136,307
Norfolk Southern Corp.		71,879		7,248,997
Ryder System, Inc.		26,420		2,519,411
Union Pacific Corp.		153,135		16,267,531
United Parcel Service, Inc., Class B		131,441		13,213,764
				81,835,601
Utilities 4.2%
AES Corp.		453,040		6,002,780
AGL Resources, Inc.		32,414		1,629,452
Alliant Energy Corp.		33,275		2,012,139
Ameren Corp.		118,590		4,855,075
American Electric Power Co., Inc.		175,301		9,969,368

6 See financial notes

 Schwab Fundamental US Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
American Water Works Co., Inc.		40,600		2,213,512
Atmos Energy Corp.		36,960		1,995,840
Calpine Corp. *		127,350		2,777,503
CenterPoint Energy, Inc.		183,470		3,847,366
CMS Energy Corp.		89,405		3,033,512
Consolidated Edison, Inc.		125,402		7,718,493
Dominion Resources, Inc.		143,380		10,277,478
DTE Energy Co.		66,630		5,305,747
Duke Energy Corp.		170,477		13,223,901
Edison International		109,076		6,647,091
Entergy Corp.		109,770		8,472,049
Eversource Energy		67,115		3,272,527
Exelon Corp.		447,073		15,209,423
FirstEnergy Corp.		265,565		9,536,439
Great Plains Energy, Inc.		56,470		1,478,385
Integrys Energy Group, Inc.		36,735		2,685,328
MDU Resources Group, Inc.		79,858		1,780,035
National Fuel Gas Co.		23,245		1,498,140
NextEra Energy, Inc.		103,759		10,472,396
NiSource, Inc.		82,635		3,588,012
NRG Energy, Inc.		155,182		3,916,794
OGE Energy Corp.		58,184		1,901,453
Pepco Holdings, Inc.		114,065		2,963,409
PG&E Corp.		179,811		9,515,598
Pinnacle West Capital Corp.		42,185		2,581,722
PPL Corp.		202,775		6,900,433
Public Service Enterprise Group, Inc.		217,822		9,048,326
SCANA Corp.		51,259		2,715,702
Sempra Energy		61,815		6,562,899
TECO Energy, Inc.		107,025		2,028,124
The Southern Co.		313,406		13,883,886
UGI Corp.		54,280		1,889,487
Vectren Corp.		28,000		1,208,760
Westar Energy, Inc.		42,270		1,591,465
Wisconsin Energy Corp.		55,123		2,707,642
Xcel Energy, Inc.		186,785		6,333,879
				215,251,570
Total Common Stock
(Cost $3,840,283,826)				5,034,584,197
Other Investment Companies 1.2% of net assets
Money Market Fund 0.7%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c)		35,395,345		35,395,345
Securities Lending Collateral 0.5%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c)		25,520,273		25,520,273
Total Other Investment Companies
(Cost $60,915,618)				60,915,618
End of Investments.

At 04/30/15 tax basis cost of the fund’s investments was $3,916,832,239 and the unrealized appreciation and depreciation were $1,223,985,283 and ($45,317,707), respectively, with a net unrealized appreciation of $1,178,667,576.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s adviser.
(b)	All or a portion of this security is on loan. Securities on loan were valued at $26,977,761. Non-cash collateral pledged to the fund for securities on loan amounted to $1,933,272.
(c)	The rate shown is the 7-day yield.

REIT — Real Estate Investment Trust

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Appreciation
	Contracts		($)		($)
Futures Contracts
S&P 500 Index, e-mini, Long, expires 06/19/15		365		37,939,925		120,130

See financial notes 7

 Schwab Fundamental US Small Company Index Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	98	.8%	Common Stock		1,200,721,769		1,504,371,176
	0	.0%	Rights		266,856		266,364
	6	.0%	Other Investment Companies		91,605,348		91,605,348
	104	.8%	Total Investments		1,292,593,973		1,596,242,888
	(4	.8%)	Other Assets and Liabilities, Net				(73,293,251	)
	100	.0%	Net Assets				1,522,949,637

	Number		Value
Security	of Shares		($)
Common Stock 98.8% of net assets
Automobiles & Components 1.0%
Cooper Tire & Rubber Co.		77,300		3,284,477
Drew Industries, Inc.		17,595		997,109
Gentex Corp.		144,100		2,500,135
Modine Manufacturing Co. *		69,400		852,926
Standard Motor Products, Inc.		17,500		661,500
Superior Industries International, Inc.		48,160		895,776
Tenneco, Inc. *		33,400		1,952,230
Thor Industries, Inc.		54,000		3,249,180
Tower International, Inc. *		23,600		610,296
				15,003,629
Banks 4.7%
Associated Banc-Corp.		109,500		2,059,695
Astoria Financial Corp.		89,900		1,183,983
BancorpSouth, Inc.		60,400		1,462,284
Bank of Hawaii Corp.		39,600		2,391,444
BankUnited, Inc.		52,700		1,731,722
BOK Financial Corp.		17,400		1,134,306
Capitol Federal Financial, Inc.		143,286		1,719,432
Cathay General Bancorp		30,700		877,406
City National Corp.		20,400		1,901,280
Commerce Bancshares, Inc.		55,689		2,378,477
Community Bank System, Inc.		20,000		699,000
Cullen/Frost Bankers, Inc.		27,800		2,027,732
CVB Financial Corp.		56,080		877,652
East West Bancorp, Inc.		48,900		1,984,851
EverBank Financial Corp.		45,100		837,507
F.N.B. Corp.		103,900		1,378,753
First Citizens BancShares, Inc., Class A		5,100		1,225,734
First Financial Bancorp		54,900		947,574
First Financial Bankshares, Inc. (a)		21,700		628,432
First Horizon National Corp.		134,700		1,919,475
First Niagara Financial Group, Inc.		291,400		2,650,283
First Republic Bank		38,900		2,267,481
FirstMerit Corp.		93,501		1,811,114
Fulton Financial Corp.		147,600		1,794,816
Glacier Bancorp, Inc.		35,380		931,909
Hancock Holding Co.		39,700		1,155,667
IBERIABANK Corp.		10,400		648,024
International Bancshares Corp.		41,800		1,085,964
MB Financial, Inc.		30,945		932,373
National Penn Bancshares, Inc.		67,400		700,960
NBT Bancorp, Inc.		33,055		798,278
Northwest Bancshares, Inc.		106,092		1,305,993
Old National Bancorp		61,725		843,164
Popular, Inc. *		107,000		3,470,010
Prosperity Bancshares, Inc.		20,700		1,104,138
Provident Financial Services, Inc.		38,190		687,420
Signature Bank *		7,000		938,630
Susquehanna Bancshares, Inc.		113,800		1,529,472
SVB Financial Group *		10,000		1,327,600
Synovus Financial Corp.		79,500		2,198,970
TCF Financial Corp.		152,300		2,385,018
Trustmark Corp.		58,000		1,380,400
UMB Financial Corp.		17,801		886,312
Umpqua Holdings Corp.		43,100		733,131
United Bankshares, Inc.		32,995		1,239,952
Valley National Bancorp		214,100		2,018,963
Washington Federal, Inc.		70,800		1,529,280
Webster Financial Corp.		44,300		1,587,269
Westamerica Bancorp		20,770		904,533
Wintrust Financial Corp.		17,940		874,396
				71,088,259
Capital Goods 11.3%
A.O. Smith Corp.		32,100		2,051,190
AAR Corp.		58,680		1,774,483
Actuant Corp., Class A		57,400		1,367,268
Acuity Brands, Inc.		18,100		3,021,795
Aegion Corp. *		43,615		803,388
Air Lease Corp.		19,300		745,559
Aircastle Ltd.		78,800		1,889,624
Albany International Corp., Class A		23,100		905,520
Allegion plc		57,800		3,534,470
Allison Transmission Holdings, Inc.		61,400		1,883,752
American Science & Engineering, Inc.		11,300		422,846
Apogee Enterprises, Inc.		25,295		1,331,023
Applied Industrial Technologies, Inc.		61,920		2,586,398
Astec Industries, Inc.		23,250		978,360
AZZ, Inc.		14,700		681,933
B/E Aerospace, Inc.		36,800		2,200,272
Barnes Group, Inc.		41,665		1,670,767
Beacon Roofing Supply, Inc. *		57,080		1,696,418
Briggs & Stratton Corp.		100,400		1,962,820
Carlisle Cos., Inc.		40,600		3,917,900
Chart Industries, Inc. *		19,110		774,911
Chicago Bridge & Iron Co., N.V. (a)		60,098		2,863,670
CIRCOR International, Inc.		13,190		720,702

8 See financial notes

 Schwab Fundamental US Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
CLARCOR, Inc.		33,125		2,153,125
Colfax Corp. *		13,700		679,383
Comfort Systems USA, Inc.		59,300		1,226,917
Crane Co.		36,900		2,254,959
Cubic Corp.		21,890		1,085,306
Curtiss-Wright Corp.		30,700		2,242,942
DigitalGlobe, Inc. *		24,100		775,297
Donaldson Co., Inc.		76,400		2,855,068
Dycom Industries, Inc. *		38,770		1,782,645
Encore Wire Corp.		37,640		1,694,176
EnerSys		38,000		2,580,200
Engility Holdings, Inc.		31,900		889,053
EnPro Industries, Inc.		12,270		785,403
ESCO Technologies, Inc.		24,300		891,810
Esterline Technologies Corp. *		17,000		1,891,930
Franklin Electric Co., Inc.		26,360		953,178
GATX Corp.		45,800		2,491,520
Generac Holdings, Inc. *		47,200		1,967,768
General Cable Corp.		194,100		3,165,771
Graco, Inc.		22,440		1,607,153
GrafTech International Ltd. *		270,000		1,306,800
Granite Construction, Inc.		65,700		2,280,447
Griffon Corp.		55,700		936,317
H&E Equipment Services, Inc.		36,220		895,358
HEICO Corp.		18,912		1,056,046
Hexcel Corp.		40,285		2,020,293
Hillenbrand, Inc.		48,300		1,419,537
Huntington Ingalls Industries, Inc.		23,400		3,079,206
Hyster-Yale Materials Handling, Inc.		9,900		726,066
IDEX Corp.		36,900		2,767,869
ITT Corp.		39,400		1,562,210
Kaman Corp.		27,080		1,129,507
Layne Christensen Co. *(a)		117,000		786,240
Lennox International, Inc.		37,300		3,952,308
Lindsay Corp. (a)		7,900		625,601
Masonite International Corp. *		21,900		1,449,780
MasTec, Inc. *		61,910		1,110,665
Meritor, Inc. *		67,300		882,976
Moog, Inc., Class A *		29,800		2,082,424
MSC Industrial Direct Co., Inc., Class A		35,000		2,487,100
Mueller Industries, Inc.		95,700		3,353,328
Mueller Water Products, Inc., Class A		108,700		1,017,432
MYR Group, Inc. *		25,400		744,728
Navistar International Corp. *		48,700		1,459,052
Nordson Corp.		28,350		2,258,077
Polypore International, Inc. *		18,500		1,083,360
Quanex Building Products Corp.		52,850		1,020,005
Raven Industries, Inc.		31,230		622,726
RBC Bearings, Inc.		10,000		729,900
Regal Beloit Corp.		40,800		3,190,560
Rexnord Corp. *		30,700		813,243
Rush Enterprises, Inc., Class A *		31,460		822,364
Simpson Manufacturing Co., Inc.		32,185		1,055,024
Spirit AeroSystems Holdings, Inc., Class A *		74,300		3,781,127
Standex International Corp.		8,900		719,743
TAL International Group, Inc. *		32,290		1,244,457
Teledyne Technologies, Inc. *		20,800		2,183,376
Tennant Co.		13,680		879,487
Terex Corp.		115,800		3,179,868
The Babcock & Wilcox Co.		80,700		2,608,224
The Greenbrier Cos., Inc. (a)		14,320		826,121
The Manitowoc Co., Inc.		94,000		1,854,620
The Middleby Corp. *		12,524		1,269,182
The Toro Co.		42,220		2,830,429
Titan International, Inc.		64,375		668,856
TransDigm Group, Inc.		13,700		2,906,181
TriMas Corp. *		24,000		676,080
Triumph Group, Inc.		42,400		2,511,776
Tutor Perini Corp. *		89,700		1,901,640
Universal Forest Products, Inc.		43,770		2,421,356
Valmont Industries, Inc. (a)		20,650		2,602,313
WABCO Holdings, Inc. *		27,200		3,385,040
Wabtec Corp.		28,620		2,691,711
Watsco, Inc.		24,145		2,904,402
Watts Water Technologies, Inc., Class A		27,755		1,514,035
Woodward, Inc.		45,400		2,136,070
				172,181,316
Commercial & Professional Supplies 5.2%
ABM Industries, Inc.		108,600		3,480,630
ACCO Brands Corp. *		110,200		867,274
Brady Corp., Class A		84,800		2,258,224
Clean Harbors, Inc. *		32,430		1,791,757
Copart, Inc.��*		96,600		3,436,062
Covanta Holding Corp.		111,000		2,252,190
Deluxe Corp.		39,600		2,564,100
FTI Consulting, Inc. *		76,100		3,128,471
G&K Services, Inc., Class A		24,390		1,721,934
Healthcare Services Group, Inc.		43,555		1,318,410
Herman Miller, Inc.		43,610		1,195,350
HNI Corp.		46,500		2,168,760
Huron Consulting Group, Inc. *		11,500		697,130
ICF International, Inc. *		23,600		908,600
IHS, Inc., Class A *		13,010		1,632,365
Insperity, Inc.		32,260		1,553,642
Interface, Inc.		50,685		1,101,385
KAR Auction Services, Inc.		67,600		2,515,396
Kelly Services, Inc., Class A		140,400		2,305,368
Kforce, Inc.		44,100		1,002,834
Kimball International, Inc., Class B		95,100		962,412
Knoll, Inc.		51,000		1,161,270
Korn/Ferry International		27,530		868,021
Matthews International Corp., Class A		27,815		1,349,862
McGrath RentCorp		25,625		848,444
Mobile Mini, Inc.		16,900		651,326
MSA Safety, Inc.		22,325		1,021,146
Navigant Consulting, Inc. *		65,325		944,600
On Assignment, Inc. *		18,700		629,255
Quad Graphics, Inc.		103,100		2,220,774
Resources Connection, Inc.		64,360		1,014,314
Rollins, Inc.		40,733		1,010,178
Steelcase, Inc., Class A		155,800		2,737,406
Stericycle, Inc. *		21,900		2,922,117
Team, Inc. *		15,800		617,464
Tetra Tech, Inc.		66,495		1,802,679
The Brink’s Co.		88,400		2,339,948

See financial notes 9

 Schwab Fundamental US Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
The Corporate Executive Board Co.		13,070		1,095,658
Towers Watson & Co., Class A		27,115		3,441,029
TrueBlue, Inc. *		48,830		1,405,327
UniFirst Corp.		11,605		1,314,034
United Stationers, Inc.		80,700		3,277,227
Verisk Analytics, Inc., Class A *		45,000		3,376,800
Viad Corp.		41,365		1,099,068
Waste Connections, Inc.		48,500		2,299,385
West Corp.		28,800		891,360
				79,200,986
Consumer Durables & Apparel 2.8%
Arctic Cat, Inc.		20,200		716,898
Brunswick Corp.		16,000		800,640
Callaway Golf Co.		83,755		810,748
Carter’s, Inc.		28,000		2,796,080
Columbia Sportswear Co.		23,660		1,483,482
Crocs, Inc. *		79,060		1,043,592
Deckers Outdoor Corp. *		26,850		1,986,900
Ethan Allen Interiors, Inc.		30,165		730,596
G-III Apparel Group Ltd. *		11,200		1,245,216
Hanesbrands, Inc.		105,400		3,275,832
Helen of Troy Ltd. *		18,530		1,623,413
Iconix Brand Group, Inc. *		17,600		463,056
JAKKS Pacific, Inc. *(a)		110,425		736,535
KB Home		43,000		623,070
La-Z-Boy, Inc.		53,620		1,405,380
Lennar Corp., Class A		41,200		1,886,960
M.D.C. Holdings, Inc.		40,500		1,087,020
Meritage Homes Corp. *		18,800		804,076
Michael Kors Holdings Ltd. *		23,800		1,472,268
Oxford Industries, Inc.		10,100		802,445
Polaris Industries, Inc.		23,800		3,259,648
PulteGroup, Inc.		101,600		1,960,880
Quiksilver, Inc. *		518,800		861,208
Skechers U.S.A., Inc., Class A *		22,545		2,027,247
Steven Madden Ltd. *		30,922		1,206,577
Sturm, Ruger & Co., Inc. (a)		14,600		800,226
Tempur Sealy International, Inc. *		41,415		2,522,588
Toll Brothers, Inc. *		36,200		1,286,548
Under Armour, Inc., Class A *		20,960		1,625,448
Wolverine World Wide, Inc.		61,280		1,883,134
				43,227,711
Consumer Services 4.4%
Aramark		31,500		967,995
Bob Evans Farms, Inc.		52,855		2,273,822
Boyd Gaming Corp. *		101,500		1,339,800
Buffalo Wild Wings, Inc. *		5,700		908,010
Capella Education Co.		16,200		875,286
Career Education Corp. *		455,100		1,911,420
Choice Hotels International, Inc.		28,540		1,708,690
Churchill Downs, Inc.		6,500		774,605
Cracker Barrel Old Country Store, Inc.		12,820		1,698,394
DineEquity, Inc.		11,730		1,131,124
Domino’s Pizza, Inc.		19,600		2,113,860
Dunkin’ Brands Group, Inc.		30,900		1,610,199
Hilton Worldwide Holdings, Inc. *		30,600		886,176
Houghton Mifflin Harcourt Co. *		44,300		1,012,698
Hyatt Hotels Corp., Class A *		21,400		1,242,270
International Speedway Corp., Class A		33,450		1,216,242
ITT Educational Services, Inc. *(a)		299,235		1,579,961
Jack in the Box, Inc.		32,800		2,846,056
Life Time Fitness, Inc. *		27,285		1,950,877
Marriott Vacations Worldwide Corp.		19,900		1,635,979
Norwegian Cruise Line Holdings Ltd. *		24,600		1,193,346
Panera Bread Co., Class A *		14,575		2,659,646
Papa John’s International, Inc.		24,320		1,492,518
Penn National Gaming, Inc. *		58,800		945,504
Pinnacle Entertainment, Inc. *		39,275		1,443,749
Red Robin Gourmet Burgers, Inc. *		15,780		1,184,920
Regis Corp. *		129,800		2,144,296
Restaurant Brands International, Inc.		78,293		3,192,788
Ruby Tuesday, Inc. *		181,150		1,318,772
Scientific Games Corp., Class A *(a)		59,900		758,933
SeaWorld Entertainment, Inc.		135,400		2,870,480
Six Flags Entertainment Corp.		31,900		1,499,938
Sonic Corp.		27,680		793,032
Sotheby’s		28,220		1,205,276
Steiner Leisure Ltd. *		19,460		938,750
Strayer Education, Inc. *		34,700		1,759,984
Texas Roadhouse, Inc.		56,610		1,902,096
The Cheesecake Factory, Inc.		57,135		2,864,178
The Wendy’s Co.		318,600		3,224,232
Vail Resorts, Inc.		20,360		2,019,916
Weight Watchers International, Inc. *(a)		144,592		1,236,262
				66,332,080
Diversified Financials 3.3%
Affiliated Managers Group, Inc. *		9,600		2,170,848
BGC Partners, Inc., Class A		91,000		913,185
Cash America International, Inc.		62,505		1,620,130
CBOE Holdings, Inc.		34,000		1,913,180
Eaton Vance Corp.		81,000		3,327,480
Ezcorp, Inc., Class A *		109,000		1,002,800
Federated Investors, Inc., Class B		112,500		3,870,000
First Cash Financial Services, Inc. *		18,790		908,309
Greenhill & Co., Inc.		29,735		1,176,019
Intercontinental Exchange, Inc.		14,400		3,233,232
Investment Technology Group, Inc. *		39,255		1,118,375
Janus Capital Group, Inc.		109,300		1,956,470
Lazard Ltd., Class A		32,600		1,728,778
LPL Financial Holdings, Inc.		57,500		2,327,025
MSCI, Inc.		32,000		1,958,080
Nelnet, Inc., Class A		18,140		812,128
PRA Group, Inc. *		13,200		723,030
Raymond James Financial, Inc.		48,900		2,764,317
Santander Consumer USA Holdings, Inc.		96,300		2,377,647
SEI Investments Co.		77,500		3,538,650
SLM Corp. *		321,700		3,278,123

10 See financial notes

 Schwab Fundamental US Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Stifel Financial Corp. *		17,560		927,870
TD Ameritrade Holding Corp.		94,800		3,436,500
Waddell & Reed Financial, Inc., Class A		52,100		2,569,572
World Acceptance Corp. *(a)		14,460		1,223,605
				50,875,353
Energy 5.5%
Alon USA Energy, Inc.		50,600		814,154
Atwood Oceanics, Inc.		44,600		1,488,748
Basic Energy Services, Inc. *		76,185		776,325
Bill Barrett Corp. *		114,800		1,331,680
Bristow Group, Inc.		26,800		1,665,084
C&J Energy Services Ltd. *		43,800		764,310
Cabot Oil & Gas Corp.		75,500		2,553,410
CARBO Ceramics, Inc. (a)		21,480		950,060
Cloud Peak Energy, Inc. *		165,600		1,074,744
Comstock Resources, Inc. (a)		101,855		546,961
Concho Resources, Inc. *		21,500		2,723,190
Continental Resources, Inc. *		12,800		673,664
CVR Energy, Inc. (a)		17,600		704,704
Delek US Holdings, Inc.		98,500		3,636,620
Dril-Quip, Inc. *		15,785		1,258,380
Energy XXI Ltd. (a)		299,600		1,309,252
EXCO Resources, Inc. (a)		376,500		775,590
Exterran Holdings, Inc.		72,600		2,691,282
Forum Energy Technologies, Inc. *		31,700		737,342
Frontline Ltd. *(a)		1,253,100		3,207,936
Golar LNG Ltd.		15,400		554,323
Green Plains, Inc.		34,800		1,083,672
Gulfmark Offshore, Inc., Class A (a)		34,105		511,916
Helix Energy Solutions Group, Inc. *		101,600		1,674,368
Hercules Offshore, Inc. *(a)		1,075,600		865,966
Hornbeck Offshore Services, Inc. *		30,780		703,323
ION Geophysical Corp. *		236,805		539,915
Key Energy Services, Inc. *		740,300		1,806,332
Matrix Service Co. *		31,700		696,449
McDermott International, Inc. *		736,100		3,864,525
Newpark Resources, Inc. *		106,240		1,090,023
Nordic American Tankers Ltd. (a)		87,385		1,068,719
North Atlantic Drilling Ltd. (a)		347,000		534,380
Parker Drilling Co. *		268,310		1,006,163
PBF Energy, Inc., Class A		33,300		945,054
PDC Energy, Inc. *		16,155		916,635
Penn Virginia Corp. *(a)		114,600		765,528
Pioneer Energy Services Corp. *		112,700		839,615
Range Resources Corp.		43,800		2,783,928
Rosetta Resources, Inc. *		36,110		824,391
Rowan Cos. plc, Class A		138,500		2,934,815
RPC, Inc.		52,100		828,911
SandRidge Energy, Inc. *(a)		842,100		1,591,569
SemGroup Corp., Class A		27,400		2,306,806
Ship Finance International Ltd.		69,500		1,095,320
SM Energy Co.		50,100		2,904,297
Stone Energy Corp. *		74,300		1,268,301
Superior Energy Services, Inc.		122,600		3,126,300
Swift Energy Co. *(a)		260,305		786,121
Targa Resources Corp.		19,400		2,036,418
Teekay Corp.		44,700		2,222,037
TETRA Technologies, Inc. *		147,060		1,061,773
Tidewater, Inc. (a)		87,600		2,425,644
Ultra Petroleum Corp. *(a)		49,700		846,391
Unit Corp. *		67,100		2,337,764
W&T Offshore, Inc. (a)		120,900		777,387
Whiting Petroleum Corp. *		69,100		2,619,581
				83,928,096
Food & Staples Retailing 0.7%
Ingles Markets, Inc., Class A		40,300		1,686,958
PriceSmart, Inc.		10,940		880,232
Rite Aid Corp. *		309,400		2,385,474
Roundy’s, Inc. *		277,500		1,398,600
SpartanNash, Co.		78,500		2,368,345
The Andersons, Inc.		39,637		1,692,104
The Fresh Market, Inc. *		26,600		934,724
				11,346,437
Food, Beverage & Tobacco 2.2%
B&G Foods, Inc.		31,600		960,640
Cal-Maine Foods, Inc. (a)		26,800		1,198,228
Darling Ingredients, Inc. *		93,920		1,282,947
Dean Foods Co.		84,000		1,365,000
Flowers Foods, Inc.		138,050		3,084,037
Fresh Del Monte Produce, Inc.		84,400		3,116,892
J&J Snack Foods Corp.		9,335		973,920
Keurig Green Mountain, Inc.		17,780		2,069,059
Lancaster Colony Corp.		17,465		1,565,912
Pilgrim’s Pride Corp. (a)		25,200		622,440
Pinnacle Foods, Inc.		20,900		847,495
Post Holdings, Inc. *		37,700		1,769,638
Sanderson Farms, Inc. (a)		22,600		1,697,712
Seaboard Corp. *		422		1,519,200
Snyder’s-Lance, Inc.		39,460		1,165,254
The Hain Celestial Group, Inc. *		23,440		1,412,026
The WhiteWave Foods Co. *		48,400		2,128,148
TreeHouse Foods, Inc. *		22,885		1,859,635
Universal Corp.		69,100		3,249,773
Vector Group Ltd.		50,776		1,124,688
				33,012,644
Health Care Equipment & Services 5.4%
Air Methods Corp. *		17,300		790,610
Alere, Inc. *		59,000		2,801,320
Align Technology, Inc. *		12,400		729,616
Allscripts Healthcare Solutions, Inc. *		122,500		1,629,250
Amedisys, Inc. *		72,970		2,029,296
Amsurg Corp. *		24,225		1,519,392
Analogic Corp.		10,565		892,742
BioScrip, Inc. *(a)		104,600		491,620
Brookdale Senior Living, Inc. *		58,600		2,123,078
Centene Corp. *		71,300		4,419,887
Cerner Corp. *		56,900		4,085,989
Chemed Corp.		22,095		2,546,449
CONMED Corp.		21,195		1,064,625
Edwards Lifesciences Corp. *		23,400		2,963,610
Envision Healthcare Holdings, Inc. *		23,600		895,856

See financial notes 11

 Schwab Fundamental US Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Greatbatch, Inc. *		15,500		835,760
Haemonetics Corp. *		33,700		1,365,861	��
Hanger, Inc. *		35,400		790,836
HealthSouth Corp.		41,300		1,867,586
Healthways, Inc. *		46,460		808,404
Hill-Rom Holdings, Inc.		54,000		2,696,760
Hologic, Inc. *		91,500		3,087,210
IDEXX Laboratories, Inc. *		21,000		2,632,770
Integra LifeSciences Holdings Corp. *		14,120		829,974
Invacare Corp.		96,065		1,928,025
Kindred Healthcare, Inc.		148,722		3,413,170
Masimo Corp. *		40,300		1,360,528
MEDNAX, Inc. *		42,600		3,015,228
Molina Healthcare, Inc. *		39,257		2,325,192
Orthofix International N.V. *		21,900		707,589
PharMerica Corp. *		62,440		1,789,530
Quality Systems, Inc.		54,700		853,046
ResMed, Inc.		57,340		3,666,320
Select Medical Holdings Corp.		107,800		1,568,490
Sirona Dental Systems, Inc. *		17,590		1,631,472
STERIS Corp.		41,300		2,746,450
Team Health Holdings, Inc. *		11,100		661,227
Teleflex, Inc.		24,700		3,037,112
The Cooper Cos., Inc.		14,100		2,510,787
The Ensign Group, Inc.		15,800		665,338
Thoratec Corp. *		28,700		1,151,157
Triple-S Management Corp., Class B *		64,300		1,203,696
VCA, Inc. *		46,600		2,375,202
West Pharmaceutical Services, Inc.		32,980		1,757,174
				82,265,234
Household & Personal Products 0.4%
Elizabeth Arden, Inc. *(a)		45,270		636,949
Nu Skin Enterprises, Inc., Class A		55,820		3,156,621
Spectrum Brands Holdings, Inc.		12,100		1,106,303
WD-40 Co.		10,415		843,198
				5,743,071
Insurance 4.3%
Alleghany Corp. *		5,250		2,485,980
Allied World Assurance Co. Holdings AG		78,500		3,229,490
American Equity Investment Life Holding Co.		48,415		1,304,784
Argo Group International Holdings Ltd.		26,164		1,281,774
Arthur J. Gallagher & Co.		71,600		3,424,628
Aspen Insurance Holdings Ltd.		67,300		3,144,929
Assured Guaranty Ltd.		102,100		2,653,579
Brown & Brown, Inc.		64,300		2,054,385
CNO Financial Group, Inc.		196,800		3,345,600
Employers Holdings, Inc.		51,100		1,247,351
Endurance Specialty Holdings Ltd.		62,000		3,743,560
First American Financial Corp.		115,900		4,032,161
Horace Mann Educators Corp.		28,590		971,202
Infinity Property & Casualty Corp.		17,465		1,295,030
Kemper Corp.		80,700		3,039,969
Markel Corp. *		3,382		2,504,845
Mercury General Corp.		34,100		1,873,454
Montpelier Re Holdings Ltd.		28,500		1,086,135
Old Republic International Corp.		231,500		3,539,635
Primerica, Inc.		70,600		3,263,132
ProAssurance Corp.		42,000		1,887,900
RLI Corp.		39,500		1,961,570
Safety Insurance Group, Inc.		16,005		930,691
Selective Insurance Group, Inc.		38,800		1,045,272
StanCorp Financial Group, Inc.		40,000		2,883,200
Stewart Information Services Corp.		26,400		963,600
Symetra Financial Corp.		37,800		897,750
The Hanover Insurance Group, Inc.		40,000		2,742,800
Validus Holdings Ltd.		80,527		3,368,444
				66,202,850
Materials 5.8%
A. Schulman, Inc.		45,133		1,915,896
AK Steel Holding Corp. *		206,700		1,050,036
Axiall Corp.		43,824		1,788,019
Berry Plastics Group, Inc. *		45,700		1,563,854
Boise Cascade Co. *		23,900		829,330
Cabot Corp.		67,700		2,893,498
Calgon Carbon Corp.		33,600		745,584
Carpenter Technology Corp.		40,500		1,751,625
Century Aluminum Co. *		43,400		559,426
Chemtura Corp. *		101,100		3,046,143
Clearwater Paper Corp. *		18,960		1,212,871
Coeur Mining, Inc. *		257,100		1,342,062
Compass Minerals International, Inc.		21,730		1,919,411
Cytec Industries, Inc.		61,000		3,372,690
Eagle Materials, Inc.		10,470		873,093
Ferro Corp. *		86,830		1,171,337
Globe Specialty Metals, Inc.		34,500		687,240
Graphic Packaging Holding Co.		260,100		3,667,410
Greif, Inc., Class A		53,700		2,188,812
H.B. Fuller Co.		46,580		1,945,647
Hecla Mining Co.		327,300		988,446
Innophos Holdings, Inc.		27,350		1,445,174
Innospec, Inc.		21,480		938,676
Intrepid Potash, Inc. *		50,300		630,259
Kaiser Aluminum Corp.		22,280		1,790,644
KapStone Paper & Packaging Corp.		35,500		992,225
Koppers Holdings, Inc.		35,060		788,149
Kraton Performance Polymers, Inc. *		55,400		1,248,716
Louisiana-Pacific Corp. *		63,000		960,120
LSB Industries, Inc. *		19,600		831,236
Martin Marietta Materials, Inc.		24,300		3,466,395
Materion Corp.		29,960		1,198,100
Minerals Technologies, Inc.		25,620		1,735,243
Myers Industries, Inc.		38,505		622,626
NewMarket Corp.		5,695		2,545,095
Olin Corp.		92,600		2,734,478
OM Group, Inc.		45,700		1,372,828
P.H. Glatfelter Co.		61,045		1,513,916
PolyOne Corp.		44,400		1,733,820
Quaker Chemical Corp.		8,600		715,692
Resolute Forest Products, Inc. *		201,400		3,105,588
RTI International Metals, Inc. *		23,480		884,022

12 See financial notes

 Schwab Fundamental US Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Schnitzer Steel Industries, Inc., Class A		149,910		2,611,432
Schweitzer-Mauduit International, Inc.		27,072		1,196,853
Sensient Technologies Corp.		38,800		2,535,968
Silgan Holdings, Inc.		45,200		2,434,924
Stepan Co.		29,230		1,488,684
Stillwater Mining Co. *		66,570		894,035
SunCoke Energy, Inc.		58,600		1,027,258
The Scotts Miracle-Gro Co., Class A		36,000		2,322,360
Tredegar Corp.		37,075		758,925
Tronox Ltd., Class A		50,400		1,055,880
W.R. Grace & Co. *		18,400		1,779,648
Walter Energy, Inc. (a)		2,501,500		1,269,011
Westlake Chemical Corp.		18,200		1,419,236
Worthington Industries, Inc.		54,100		1,462,323
				89,021,969
Media 2.2%
AMC Networks, Inc., Class A *		16,800		1,267,392
Central European Media Enterprises Ltd., Class A *(a)		274,100		753,775
Cinemark Holdings, Inc.		88,900		3,789,807
Dex Media, Inc. *(a)		251,200		660,656
DreamWorks Animation SKG, Inc., Class A *(a)		68,800		1,792,928
John Wiley & Sons, Inc., Class A		33,800		1,922,544
Liberty Media Corp., Class A *		43,000		1,650,340
Liberty Media Corp., Class C *		47,800		1,814,010
Lions Gate Entertainment Corp.		36,200		1,122,562
Live Nation Entertainment, Inc. *		78,800		1,974,728
Loral Space & Communications, Inc. *		21,800		1,504,200
Meredith Corp.		40,900		2,128,436
Morningstar, Inc.		9,300		705,777
National CineMedia, Inc.		73,100		1,114,044
Regal Entertainment Group, Class A		102,700		2,259,400
Scholastic Corp.		60,700		2,466,848
Sinclair Broadcast Group, Inc., Class A		39,919		1,223,118
Sirius XM Holdings, Inc. *		480,500		1,897,975
The Madison Square Garden Co., Class A *		17,500		1,405,250
The New York Times Co., Class A		127,400		1,705,886
				33,159,676
Pharmaceuticals, Biotechnology & Life Sciences 2.1%
Alexion Pharmaceuticals, Inc. *		7,200		1,218,456
Bio-Rad Laboratories, Inc., Class A *		15,700		2,110,865
Bio-Techne Corp.		16,065		1,541,597
Bruker Corp. *		42,500		805,800
Charles River Laboratories International, Inc. *		46,200		3,195,192
Illumina, Inc. *		9,060		1,669,305
Impax Laboratories, Inc. *		38,900		1,760,614
Mallinckrodt plc *		35,521		4,020,267
Myriad Genetics, Inc. *(a)		32,500		1,073,475
PAREXEL International Corp. *		20,320		1,291,844
PDL BioPharma, Inc. (a)		182,750		1,218,943
PerkinElmer, Inc.		58,600		3,003,836
Perrigo Co., plc		23,000		4,215,440
QIAGEN N.V. *		88,300		2,102,423
Quintiles Transnational Holdings, Inc. *		11,300		744,444
United Therapeutics Corp. *		9,200		1,469,148
				31,441,649
Real Estate 8.9%
AG Mortgage Investment Trust, Inc.		40,000		768,800
Alexandria Real Estate Equities, Inc.		25,900		2,392,642
American Campus Communities, Inc.		35,560		1,427,378
American Capital Mortgage Investment Corp.		69,000		1,210,260
Anworth Mortgage Asset Corp.		208,455		1,058,951
Ashford Hospitality Trust, Inc.		74,885		678,458
BioMed Realty Trust, Inc.		86,700		1,799,025
Brandywine Realty Trust		119,100		1,736,478
Camden Property Trust		35,900		2,695,372
Capstead Mortgage Corp.		108,350		1,262,278
CBL & Associates Properties, Inc.		117,800		2,121,578
CBRE Group, Inc., Class A *		81,600		3,128,544
Chimera Investment Corp.		89,100		1,353,429
Columbia Property Trust, Inc.		99,200		2,602,016
Corporate Office Properties Trust		63,800		1,683,682
Corrections Corp. of America		100,628		3,702,104
Cousins Properties, Inc.		61,283		596,896
CYS Investments, Inc.		160,000		1,427,200
DCT Industrial Trust, Inc.		34,650		1,144,836
DDR Corp.		107,600		1,834,580
DiamondRock Hospitality Co.		98,700		1,338,372
Digital Realty Trust, Inc.		55,900		3,544,619
Douglas Emmett, Inc.		57,100		1,627,350
Duke Realty Corp.		167,900		3,326,099
EastGroup Properties, Inc.		14,650		837,980
EPR Properties		28,300		1,632,061
Equity Commonwealth *		99,900		2,518,479
Equity LifeStyle Properties, Inc.		21,540		1,137,743
Equity One, Inc.		25,300		623,139
Essex Property Trust, Inc.		10,709		2,376,863
Extra Space Storage, Inc.		18,765		1,237,176
Federal Realty Investment Trust		21,600		2,887,272
Franklin Street Properties Corp.		51,100		603,491
Government Properties Income Trust		29,900		623,116
Hatteras Financial Corp.		89,900		1,623,594
Healthcare Realty Trust, Inc.		48,000		1,228,800
Healthcare Trust of America, Inc., Class A		28,900		748,221
Hersha Hospitality Trust		102,500		659,075
Highwoods Properties, Inc.		47,600		2,048,704
Home Properties, Inc.		29,000		2,133,240
HomeBanc Corp. *(b)(c)		6,875		—
Inland Real Estate Corp.		59,730		614,622
Invesco Mortgage Capital, Inc.		93,400		1,438,360
Investors Real Estate Trust		78,600		563,562

See financial notes 13

 Schwab Fundamental US Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
iStar Financial, Inc. *		85,700		1,160,378
Jones Lang LaSalle, Inc.		23,700		3,935,622
Kilroy Realty Corp.		22,100		1,568,879
Lamar Advertising Co., Class A		33,600		1,947,456
LaSalle Hotel Properties		36,340		1,333,315
Lexington Realty Trust		137,100		1,270,917
Liberty Property Trust		95,400		3,323,736
Mack-Cali Realty Corp.		147,700		2,651,215
Medical Properties Trust, Inc.		51,700		722,766
MFA Financial, Inc.		294,400		2,287,488
Mid-America Apartment Communities, Inc.		20,921		1,560,916
National Retail Properties, Inc.		38,100		1,463,040
NorthStar Realty Finance Corp.		49,366		926,106
Omega Healthcare Investors, Inc.		34,690		1,251,962
Pennsylvania Real Estate Investment Trust		44,500		1,006,145
PennyMac Mortgage Investment Trust		40,600		850,570
Piedmont Office Realty Trust, Inc., Class A		161,500		2,823,020
Post Properties, Inc.		17,920		1,024,486
Potlatch Corp.		30,200		1,114,682
PS Business Parks, Inc.		10,250		782,588
Realty Income Corp.		43,700		2,052,589
Redwood Trust, Inc.		64,300		1,105,317
Regency Centers Corp.		40,900		2,567,702
Retail Properties of America, Inc., Class A		130,100		1,965,811
RLJ Lodging Trust		45,500		1,349,985
Ryman Hospitality Properties, Inc.		15,900		916,476
Sabra Health Care REIT, Inc.		37,000		1,105,560
Senior Housing Properties Trust		98,100		2,008,107
SL Green Realty Corp.		20,600		2,520,616
Sovran Self Storage, Inc.		11,170		975,588
Starwood Property Trust, Inc.		46,200		1,109,262
Sun Communities, Inc.		13,955		866,047
Sunstone Hotel Investors, Inc.		62,027		966,381
Tanger Factory Outlet Centers, Inc.		30,580		1,026,876
Taubman Centers, Inc.		22,700		1,634,627
The Geo Group, Inc.		38,536		1,502,904
Two Harbors Investment Corp.		79,600		835,800
UDR, Inc.		100,000		3,277,000
Washington Real Estate Investment Trust		53,000		1,310,160
Weingarten Realty Investors		70,500		2,309,580
WP Carey, Inc.		21,200		1,345,776
				135,753,896
Retailing 5.8%
Aeropostale, Inc. *		815,000		2,518,350
ANN, Inc. *		65,000		2,460,900
Asbury Automotive Group, Inc. *		22,900		1,924,287
Ascena Retail Group, Inc. *		155,000		2,323,450
Barnes & Noble, Inc. *		86,900		1,903,110
Brown Shoe Co., Inc.		55,142		1,637,717
Burlington Stores, Inc. *		36,900		1,902,933
Cabela’s, Inc. *		21,400		1,128,636
Chico’s FAS, Inc.		218,600		3,685,596
DSW, Inc., Class A		73,036		2,649,016
Express, Inc. *		126,400		2,060,320
Five Below, Inc. *		18,700		630,564
Fred’s, Inc., Class A		131,870		2,224,647
Genesco, Inc. *		28,900		1,953,351
GNC Holdings, Inc., Class A		67,100		2,888,655
Group 1 Automotive, Inc.		38,200		3,017,036
hhgregg, Inc. *(a)		104,300		596,596
Hibbett Sports, Inc. *		23,885		1,117,818
HSN, Inc.		29,000		1,810,180
Lithia Motors, Inc., Class A		14,335		1,429,629
LKQ Corp. *		114,200		3,091,394
Lumber Liquidators Holdings, Inc. *(a)		15,300		420,597
Monro Muffler Brake, Inc.		15,940		954,647
Netflix, Inc. *		6,420		3,572,730
Nutrisystem, Inc.		56,930		1,084,516
Office Depot, Inc. *		522,458		4,817,063
Outerwall, Inc. (a)		29,825		1,981,275
Penske Automotive Group, Inc.		51,900		2,533,239
Pier 1 Imports, Inc.		117,085		1,481,125
Pool Corp.		29,380		1,906,468
Sally Beauty Holdings, Inc. *		59,365		1,852,782
Sears Hometown & Outlet Stores, Inc. *(a)		97,900		678,447
Select Comfort Corp. *		29,370		905,183
Sonic Automotive, Inc., Class A		87,200		2,036,120
Stage Stores, Inc.		84,455		1,630,826
Stein Mart, Inc.		49,700		587,951
The Bon-Ton Stores, Inc. (a)		85,100		610,167
The Buckle, Inc. (a)		40,522		1,815,386
The Cato Corp., Class A		39,495		1,553,733
The Children’s Place, Inc.		46,260		2,806,132
The Finish Line, Inc., Class A		74,752		1,833,667
The Men’s Wearhouse, Inc.		67,400		3,814,166
The Pep Boys - Manny, Moe & Jack *		128,815		1,179,945
TripAdvisor, Inc. *		10,400		837,096
Tuesday Morning Corp. *		44,600		705,572
Ulta Salon, Cosmetics & Fragrance, Inc. *		18,200		2,749,838
Vitamin Shoppe, Inc. *		23,800		996,744
				88,299,600
Semiconductors & Semiconductor Equipment 3.5%
Advanced Energy Industries, Inc. *		34,100		834,086
Advanced Micro Devices, Inc. *(a)		770,500		1,741,330
Amkor Technology, Inc. *		125,600		882,968
Atmel Corp.		377,500		2,861,450
Brooks Automation, Inc.		76,990		828,412
Cabot Microelectronics Corp. *		32,930		1,557,589
Cirrus Logic, Inc. *		51,835		1,750,986
Cree, Inc. *(a)		40,800		1,292,544
Cypress Semiconductor Corp. *		314,403		4,187,848
Diodes, Inc. *		28,600		764,192
Entegris, Inc. *		85,745		1,141,266
Fairchild Semiconductor International, Inc. *		138,000		2,506,770
First Solar, Inc. *		53,000		3,162,510
Freescale Semiconductor Ltd. *		35,800		1,399,422
Integrated Device Technology, Inc. *		63,080		1,147,425
Intersil Corp., Class A		137,400		1,834,290

14 See financial notes

 Schwab Fundamental US Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Micrel, Inc.		51,050		694,280
Microsemi Corp. *		32,745		1,092,373
MKS Instruments, Inc.		43,850		1,526,419
OmniVision Technologies, Inc. *		38,780		1,081,768
ON Semiconductor Corp. *		279,000		3,214,080
Photronics, Inc. *		96,025		842,139
PMC-Sierra, Inc. *		132,725		1,118,872
Power Integrations, Inc.		11,900		588,931
Qorvo, Inc. *		41,265		2,719,776
Silicon Laboratories, Inc. *		42,790		2,210,959
Skyworks Solutions, Inc.		36,100		3,330,225
SunEdison, Inc. *		94,100		2,382,612
Synaptics, Inc. *		15,405		1,305,112
Teradyne, Inc.		111,800		2,040,350
Tessera Technologies, Inc.		24,090		869,890
Veeco Instruments, Inc. *		33,760		996,258
				53,907,132
Software & Services 5.8%
ACI Worldwide, Inc. *		33,800		778,414
Acxiom Corp. *		93,015		1,624,042
Akamai Technologies, Inc. *		55,000		4,057,900
ANSYS, Inc. *		19,800		1,699,632
Cadence Design Systems, Inc. *		44,900		837,385
Cimpress N.V. *		27,220		2,284,847
Convergys Corp.		169,900		3,853,332
CSG Systems International, Inc.		31,345		912,766
DST Systems, Inc.		34,300		3,947,244
EarthLink Holdings Corp.		475,475		2,248,997
Equinix, Inc.		10,507		2,689,057
Euronet Worldwide, Inc. *		20,895		1,221,940
FactSet Research Systems, Inc.		15,565		2,449,775
Fair Isaac Corp.		27,105		2,397,708
FleetCor Technologies, Inc. *		6,900		1,110,141
Gartner, Inc. *		23,700		1,966,626
Genpact Ltd. *		115,250		2,519,365
Global Cash Access Holdings, Inc. *		85,035		629,259
Global Payments, Inc.		40,400		4,051,312
Heartland Payment Systems, Inc.		27,465		1,397,968
Informatica Corp. *		29,755		1,430,323
j2 Global, Inc.		19,085		1,323,926
Jack Henry & Associates, Inc.		34,380		2,286,614
Manhattan Associates, Inc. *		24,880		1,307,693
ManTech International Corp., Class A		61,200		1,788,876
MAXIMUS, Inc.		36,380		2,328,684
Mentor Graphics Corp.		41,820		1,000,753
Monster Worldwide, Inc. *		324,100		1,908,949
NeuStar, Inc., Class A *(a)		83,475		2,504,250
Nuance Communications, Inc. *		87,600		1,342,908
Progress Software Corp. *		57,625		1,521,300
PTC, Inc. *		39,940		1,531,300
Rackspace Hosting, Inc. *		29,720		1,601,908
Red Hat, Inc. *		30,000		2,257,800
Rovi Corp. *		47,869		886,055
Salesforce.com, Inc. *		30,933		2,252,541
Solera Holdings, Inc.		22,360		1,084,907
Sykes Enterprises, Inc. *		52,955		1,325,464
Synopsys, Inc. *		53,100		2,489,328
Take-Two Interactive Software, Inc. *		55,755		1,321,393
TeleTech Holdings, Inc.		28,210		731,767
Unisys Corp. *		78,700		1,713,299
Vantiv, Inc., Class A *		27,800		1,086,980
VeriFone Systems, Inc. *		34,500		1,234,065
VeriSign, Inc. *		59,400		3,772,494
VMware, Inc., Class A *		10,700		942,670
WebMD Health Corp. *		30,100		1,328,915
WEX, Inc. *		9,700		1,093,287
				88,076,159
Technology Hardware & Equipment 4.9%
ADTRAN, Inc.		66,545		1,105,312
ARRIS Group, Inc. *		59,005		1,986,993
Belden, Inc.		21,740		1,825,073
Benchmark Electronics, Inc. *		113,500		2,670,655
Brocade Communications Systems, Inc.		284,800		3,218,240
CDW Corp.		33,400		1,279,888
Checkpoint Systems, Inc.		61,200		634,032
Cognex Corp. *		18,330		822,834
Coherent, Inc. *		23,340		1,400,400
CommScope Holding Co., Inc. *		38,400		1,133,184
Comtech Telecommunications Corp.		48,070		1,389,223
Diebold, Inc.		87,300		3,035,421
Dolby Laboratories, Inc., Class A		38,100		1,533,906
EchoStar Corp., Class A *		26,300		1,315,000
Electronics for Imaging, Inc. *		24,102		1,005,776
Emulex Corp. *		158,965		1,274,899
F5 Networks, Inc. *		26,040		3,177,401
Fabrinet *		39,400		713,534
FEI Co.		11,720		884,391
Finisar Corp. *		55,830		1,135,024
FLIR Systems, Inc.		107,000		3,305,230
Insight Enterprises, Inc. *		112,700		3,225,474
InterDigital, Inc.		32,100		1,756,512
Itron, Inc. *		55,400		1,986,644
JDS Uniphase Corp. *		141,000		1,785,060
Knowles Corp. *(a)		49,400		946,998
Littelfuse, Inc.		10,245		1,003,908
MTS Systems Corp.		12,180		859,664
National Instruments Corp.		45,842		1,311,081
NCR Corp. *		105,300		2,889,432
NETGEAR, Inc. *		36,150		1,094,261
OSI Systems, Inc. *		11,200		752,752
Plantronics, Inc.		26,810		1,428,169
Plexus Corp. *		57,880		2,491,734
Polycom, Inc. *		166,440		2,172,042
QLogic Corp. *		227,280		3,341,016
Rofin-Sinar Technologies, Inc. *		40,110		949,003
Sanmina Corp. *		136,300		2,770,979
ScanSource, Inc. *		51,740		2,061,839
Trimble Navigation Ltd. *		66,000		1,678,380
TTM Technologies, Inc. *		90,400		845,240
ViaSat, Inc. *		13,915		836,570
Zebra Technologies Corp., Class A *		32,820		3,022,066
				74,055,240

See financial notes 15

 Schwab Fundamental US Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Telecommunication Services 1.1%
Cincinnati Bell, Inc. *		449,900		1,543,157
Consolidated Communications Holdings, Inc.		45,914		967,408
Inteliquent, Inc.		44,900		853,549
Intelsat S.A. *		68,000		856,120
Level 3 Communications, Inc. *		82,530		4,616,729
NTELOS Holdings Corp.		111,020		645,026
SBA Communications Corp., Class A *		19,905		2,305,397
Spok Holdings, Inc.		60,000		1,129,500
T-Mobile US, Inc. *		58,500		1,991,340
Vonage Holdings Corp. *		227,100		1,051,473
				15,959,699
Transportation 3.7%
Alaska Air Group, Inc.		59,600		3,817,976
Allegiant Travel Co.		6,400		984,064
AMERCO		3,400		1,094,936
American Airlines Group, Inc.		68,200		3,293,037
ArcBest Corp.		32,040		1,143,828
Atlas Air Worldwide Holdings, Inc. *		36,600		1,783,884
Con-way, Inc.		66,300		2,724,930
Copa Holdings S.A., Class A		18,500		2,051,465
Delta Air Lines, Inc.		59,500		2,656,080
Forward Air Corp.		19,825		998,585
Genesee & Wyoming, Inc., Class A *		9,265		861,182
Hawaiian Holdings, Inc. *		37,640		868,731
Heartland Express, Inc.		42,665		892,552
Hub Group, Inc., Class A *		45,410		1,811,859
JetBlue Airways Corp. *		200,500		4,116,265
Kirby Corp. *		23,900		1,876,867
Knight Transportation, Inc.		46,925		1,356,132
Landstar System, Inc.		38,270		2,384,604
Matson, Inc.		37,800		1,530,900
Navios Maritime Holdings, Inc.		185,200		701,908
Old Dominion Freight Line, Inc. *		21,275		1,513,291
Republic Airways Holdings, Inc. *		147,100		1,800,504
Saia, Inc. *		17,950		731,462
SkyWest, Inc.		273,600		3,734,640
Southwest Airlines Co.		80,200		3,252,912
Spirit Airlines, Inc. *		15,800		1,081,826
Swift Transportation Co. *		44,600		1,079,320
United Continental Holdings, Inc. *		46,200		2,759,988
UTi Worldwide, Inc. *		227,300		2,052,519
Werner Enterprises, Inc.		78,900		2,120,043
				57,076,290
Utilities 3.8%
ALLETE, Inc.		34,900		1,755,470
American States Water Co.		21,830		838,054
Aqua America, Inc.		90,375		2,423,857
Atlantic Power Corp.		365,500		1,187,875
Avista Corp.		69,800		2,276,876
Black Hills Corp.		40,300		1,986,387
California Water Service Group		37,880		904,196
Cleco Corp.		44,000		2,391,400
Dynegy, Inc. *		52,700		1,753,329
El Paso Electric Co.		45,490		1,692,683
Hawaiian Electric Industries, Inc.		111,700		3,496,210
IDACORP, Inc.		37,100		2,238,243
ITC Holdings Corp.		57,000		2,052,000
MGE Energy, Inc.		26,050		1,080,554
New Jersey Resources Corp.		82,600		2,520,126
Northwest Natural Gas Co.		33,705		1,574,023
NorthWestern Corp.		38,200		1,989,838
Otter Tail Corp.		43,480		1,300,487
Piedmont Natural Gas Co., Inc.		70,200		2,628,288
PNM Resources, Inc.		87,000		2,416,860
Portland General Electric Co.		89,400		3,143,304
Questar Corp.		117,700		2,758,888
South Jersey Industries, Inc.		24,840		1,310,310
Southwest Gas Corp.		48,900		2,689,500
The Empire District Electric Co.		48,610		1,145,738
The Laclede Group, Inc.		32,140		1,669,030
UIL Holdings Corp.		49,700		2,479,036
WGL Holdings, Inc.		63,800		3,509,638
				57,212,200
Total Common Stock
(Cost $1,200,721,769)				1,504,371,176
Rights 0.0% of net assets
Technology Hardware & Equipment 0.0%
Gerber Scientific, Inc. CVR *(a)(b)(c)		19,700		—
Telecommunication Services 0.0%
Contra Leap Wireless CVR *(b)(c)		105,700		266,364
Total Rights
(Cost $266,856)				266,364
Other Investment Companies 6.0% of net assets
Money Market Fund 3.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d)		45,483,083		45,483,083
Securities Lending Collateral 3.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d)		46,122,265		46,122,265
Total Other Investment Companies
(Cost $91,605,348)				91,605,348
End of Investments.

16 See financial notes

 Schwab Fundamental US Small Company Index Fund

Portfolio Holdings (Unaudited) continued

At 04/30/15 tax basis cost of the fund’s investments was $1,298,939,468 and the unrealized appreciation and depreciation were $342,303,709 and ($45,000,289), respectively, with a net unrealized appreciation of $297,303,420.

*	Non-income producing security.
(a)	All or a portion of this security is on loan. Securities on loan were valued at $45,023,481. Non-cash collateral pledged to the fund for securities on loan amounted to $1,794,525.
(b)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(c)	Illiquid security. At the period end, the value of these amounted to $266,364 or 0.0% of net assets.
(d)	The rate shown is the 7-day yield.

CVR —	Contingent Value Rights
REIT —	Real Estate Investment Trust

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Depreciation
	Contracts		($)		($)
Futures Contracts
Russell 2000 Index, mini, Long, expires 06/19/15		120		14,596,800		(357,438	)

See financial notes 17

 Schwab Fundamental International Large Company Index Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	98	.7%	Common Stock		949,629,638		1,065,172,105
	0	.5%	Preferred Stock		3,911,285		5,270,579
	0	.0%	Rights		246,220		254,056
	1	.9%	Other Investment Company		20,276,823		20,276,823
	0	.4%	Short-Term Investments		4,326,123		4,326,124
	101	.5%	Total Investments		978,390,089		1,095,299,687
	(1	.5%)	Other Assets and Liabilities, Net				(16,429,676	)
	100	.0%	Net Assets				1,078,870,011

	Number		Value
Security	of Shares		($)
Common Stock 98.7% of net assets
Australia 5.3%
Banks 1.6%
Australia & New Zealand Banking Group Ltd.		138,529		3,706,739
Commonwealth Bank of Australia		72,371		5,065,750
National Australia Bank Ltd.		143,363		4,151,128
Westpac Banking Corp.		150,032		4,310,520
				17,234,137
Capital Goods 0.0%
CIMIC Group Ltd.		15,515		256,925
UGL Ltd.		123,346		169,479
				426,404
Commercial & Professional Supplies 0.1%
Brambles Ltd.		71,062		605,707
Downer EDI Ltd.		72,586		252,405
				858,112
Consumer Services 0.1%
Crown Resorts Ltd.		30,551		312,836
Tabcorp Holdings Ltd.		97,406		374,202
Tatts Group Ltd.		158,336		504,370
				1,191,408
Diversified Financials 0.1%
BGP Holdings plc (a)(b)		453,854		—
Macquarie Group Ltd.		13,415		821,971
				821,971
Energy 0.3%
Caltex Australia Ltd.		18,476		515,293
Origin Energy Ltd.		86,049		860,119
Santos Ltd.		70,524		459,276
Woodside Petroleum Ltd.		32,849		905,883
WorleyParsons Ltd.		38,409		345,094
				3,085,665
Food & Staples Retailing 0.7%
Metcash Ltd.		342,480		357,502
Wesfarmers Ltd.		117,162		4,038,492
Woolworths Ltd.		117,226		2,721,710
				7,117,704
Food, Beverage & Tobacco 0.0%
Coca-Cola Amatil Ltd.		55,011		445,356
Health Care Equipment & Services 0.0%
Sonic Healthcare Ltd.		23,635		370,407
Insurance 0.4%
AMP Ltd.		165,385		837,753
Insurance Australia Group Ltd.		98,831		452,945
QBE Insurance Group Ltd.		137,549		1,483,568
Suncorp Group Ltd.		140,000		1,447,792
				4,222,058
Materials 1.2%
Amcor Ltd.		62,714		667,659
Arrium Ltd.		2,104,904		287,103
BHP Billiton Ltd.		293,715		7,500,415
BlueScope Steel Ltd.		134,945		371,304
Boral Ltd.		87,653		436,634
Incitec Pivot Ltd.		161,661		507,699
Newcrest Mining Ltd. *		73,091		819,312
Orica Ltd.		43,253		685,459
Rio Tinto Ltd.		38,818		1,749,810
				13,025,395
Media 0.0%
Fairfax Media Ltd.		386,454		317,980
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
CSL Ltd.		14,777		1,059,264
Real Estate 0.2%
Lend Lease Group		39,454		498,512
Mirvac Group		186,776		295,897
Stockland		163,883		572,772
Westfield Corp.		130,270		968,528
				2,335,709
Software & Services 0.0%
Computershare Ltd.		25,276		245,187
Telecommunication Services 0.2%
Telstra Corp., Ltd.		361,727		1,778,142
Transportation 0.2%
Asciano Ltd.		72,925		378,912
Aurizon Holdings Ltd.		93,680		357,637
Qantas Airways Ltd. *		234,421		626,593
Toll Holdings Ltd.		92,657		655,800
Transurban Group		35,907		280,724
				2,299,666

18 See financial notes

 Schwab Fundamental International Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Utilities 0.1%
AGL Energy Ltd.		48,753		584,872
				57,419,437
Austria 0.4%
Banks 0.2%
Erste Group Bank AG		51,200		1,445,561
Raiffeisen Bank International AG		21,237		352,542
				1,798,103
Capital Goods 0.0%
ANDRITZ AG		4,969		290,919
Energy 0.1%
OMV AG		40,861		1,360,003
Materials 0.1%
voestalpine AG		17,725		742,110
Telecommunication Services 0.0%
Telekom Austria AG		40,590		301,899
				4,493,034
Belgium 0.9%
Banks 0.1%
KBC Groep N.V. *		9,417		619,575
Food & Staples Retailing 0.2%
Colruyt S.A.		7,404		349,932
Delhaize Group S.A.		23,200		1,867,607
				2,217,539
Food, Beverage & Tobacco 0.3%
Anheuser-Busch InBev N.V.		27,133		3,303,396
Insurance 0.1%
Ageas		29,113		1,093,840
Materials 0.1%
Bekaert N.V.		10,872		315,855
Solvay S.A.		4,308		634,331
Umicore S.A.		15,869		788,795
				1,738,981
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
UCB S.A.		4,897		352,745
Telecommunication Services 0.1%
Belgacom S.A.		18,904		704,076
				10,030,152
Canada 6.6%
Automobiles & Components 0.2%
Magna International, Inc.		34,793		1,753,348
Banks 1.4%
Bank of Montreal (c)		33,833		2,210,292
Canadian Imperial Bank of Commerce		20,073		1,611,830
National Bank of Canada		16,654		672,924
Royal Bank of Canada		66,514		4,416,441
The Bank of Nova Scotia		54,432		3,001,542
The Toronto-Dominion Bank		72,892		3,365,176
				15,278,205
Capital Goods 0.1%
Bombardier, Inc., Class B		149,313		301,968
Finning International, Inc.		14,319		293,382
SNC-Lavalin Group, Inc.		10,108		364,441
				959,791
Diversified Financials 0.1%
IGM Financial, Inc.		8,384		317,084
Onex Corp.		7,942		478,232
				795,316
Energy 1.9%
ARC Resources Ltd.		19,273		394,406
Baytex Energy Corp. (c)		13,767		268,950
Bonavista Energy Corp. (c)		34,297		236,227
Cameco Corp.		20,686		363,827
Canadian Natural Resources Ltd.		63,279		2,102,657
Canadian Oil Sands Ltd.		90,203		980,159
Cenovus Energy, Inc.		73,644		1,387,425
Crescent Point Energy Corp.		18,447		481,778
Enbridge, Inc.		26,397		1,379,689
Encana Corp.		115,733		1,643,188
Enerplus Corp. (c)		31,900		403,476
Husky Energy, Inc.		35,577		795,580
Imperial Oil Ltd.		19,230		847,618
Inter Pipeline Ltd.		9,789		256,388
Pacific Rubiales Energy Corp. (c)		58,958		199,377
Pembina Pipeline Corp.		9,439		328,507
Pengrowth Energy Corp. (c)		118,435		397,565
Penn West Petroleum Ltd. (c)		322,403		801,665
Suncor Energy, Inc.		113,624		3,700,196
Talisman Energy, Inc.		190,892		1,523,655
TransCanada Corp.		39,759		1,845,424
Vermilion Energy, Inc.		4,528		217,974
				20,555,731
Food & Staples Retailing 0.4%
Alimentation Couche-Tard, Inc., Class B		22,289		853,134
Empire Co., Ltd., Class A		9,158		661,668
George Weston Ltd.		6,333		523,122
Loblaw Cos., Ltd.		17,480		888,561
Metro, Inc.		34,204		988,840
				3,915,325
Food, Beverage & Tobacco 0.0%
Saputo, Inc.		14,485		429,207
Insurance 0.5%
Fairfax Financial Holdings Ltd.		970		529,822
Great-West Lifeco, Inc.		15,482		474,918
Intact Financial Corp.		5,177		398,755
Manulife Financial Corp.		73,066		1,329,904
Power Corp. of Canada		37,243		1,023,295
Power Financial Corp.		17,931		554,650
Sun Life Financial, Inc.		27,015		864,525
				5,175,869
Materials 0.7%
Agrium, Inc.		12,250		1,269,167
Barrick Gold Corp.		157,324		2,044,625
First Quantum Minerals Ltd.		27,232		417,114
Goldcorp, Inc.		40,226		757,176

See financial notes 19

 Schwab Fundamental International Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Kinross Gold Corp. *		185,711		451,001
Potash Corp. of Saskatchewan, Inc.		57,004		1,861,548
Teck Resources Ltd., Class B		68,713		1,041,658
Yamana Gold, Inc.		70,646		269,936
				8,112,225
Media 0.1%
Quebecor, Inc., Class B		9,146		251,524
Shaw Communications, Inc., Class B		22,435		512,853
Yellow Pages Ltd. *		31,344		409,174
				1,173,551
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Valeant Pharmaceuticals International, Inc. *		3,110		674,405
Real Estate 0.1%
Brookfield Asset Management, Inc., Class A		29,333		1,579,581
Retailing 0.1%
Canadian Tire Corp., Ltd., Class A		5,600		593,141
RONA, Inc.		28,093		369,761
				962,902
Software & Services 0.0%
CGI Group, Inc., Class A *		7,110		299,251
Technology Hardware & Equipment 0.2%
BlackBerry Ltd. *		163,319		1,658,233
Celestica, Inc. *		30,855		376,704
				2,034,937
Telecommunication Services 0.3%
BCE, Inc.		32,748		1,443,735
Rogers Communications, Inc., Class B		28,840		1,030,256
TELUS Corp.		21,841		755,429
				3,229,420
Transportation 0.2%
Canadian National Railway Co.		28,266		1,825,049
Canadian Pacific Railway Ltd.		3,241		617,925
				2,442,974
Utilities 0.2%
Atco Ltd., Class I		5,932		224,841
Canadian Utilities Ltd., Class A		8,978		291,701
Emera, Inc. (c)		8,220		277,021
Fortis, Inc.		14,856		483,543
TransAlta Corp.		48,446		481,850
				1,758,956
				71,130,994
Denmark 0.8%
Banks 0.1%
Danske Bank A/S		30,835		874,501
Capital Goods 0.1%
FLSmidth & Co. A/S		4,859		207,581
Vestas Wind Systems A/S		9,908		449,402
				656,983
Food, Beverage & Tobacco 0.1%
Carlsberg A/S, Class B		8,447		770,101
Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Novo Nordisk A/S, Class B		49,537		2,781,040
Telecommunication Services 0.1%
TDC A/S		124,614		948,737
Transportation 0.2%
AP Moeller - Maersk A/S, Series A		493		950,453
AP Moeller - Maersk A/S, Series B		846		1,678,958
DSV A/S		10,212		354,251
				2,983,662
				9,015,024
Finland 1.0%
Automobiles & Components 0.0%
Nokian Renkaat Oyj (c)		7,389		240,113
Capital Goods 0.2%
Kone Oyj, Class B		11,177		480,852
Metso Oyj		15,110		429,523
Wartsila Oyj Abp		10,517		482,520
YIT Oyj (c)		31,544		222,647
				1,615,542
Energy 0.0%
Neste Oil Oyj		19,697		535,720
Food & Staples Retailing 0.1%
Kesko Oyj, B Shares		18,776		767,165
Insurance 0.1%
Sampo Oyj, A Shares		17,067		826,969
Materials 0.2%
Stora Enso Oyj, R Shares		89,105		937,676
UPM-Kymmene Oyj		68,594		1,241,178
				2,178,854
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Orion Oyj, Class B		8,468		276,895
Technology Hardware & Equipment 0.3%
Nokia Oyj		442,115		2,983,140
Telecommunication Services 0.0%
Elisa Oyj		11,394		349,058
Utilities 0.1%
Fortum Oyj		37,562		741,752
				10,515,208
France 10.5%
Automobiles & Components 0.5%
Faurecia		6,387		302,762
Peugeot S.A. *		127,113		2,403,149
Renault S.A.		21,903		2,304,582
Valeo S.A.		4,772		765,045
				5,775,538
Banks 0.9%
BNP Paribas S.A.		92,533		5,843,576
Credit Agricole S.A.		72,318		1,125,149

20 See financial notes

 Schwab Fundamental International Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Societe Generale S.A.		63,510		3,175,161
				10,143,886
Capital Goods 1.6%
Airbus Group N.V.		19,145		1,326,789
Alstom S.A. *		25,631		805,180
Bouygues S.A. (c)		39,779		1,642,263
Compagnie de Saint-Gobain		86,056		3,910,994
Eiffage S.A.		6,109		372,541
Legrand S.A.		13,179		762,046
Nexans S.A. *		7,199		282,100
Rexel S.A.		45,496		857,447
Safran S.A.		11,850		865,848
Schneider Electric SE		34,433		2,573,811
Thales S.A.		6,131		373,229
Vallourec S.A.		23,455		553,088
Vinci S.A.		53,274		3,267,545
				17,592,881
Commercial & Professional Supplies 0.0%
Teleperformance		4,558		342,647
Consumer Durables & Apparel 0.3%
Christian Dior SE		3,403		665,290
Kering		4,572		845,530
LVMH Moet Hennessy Louis Vuitton SE		12,522		2,189,675
				3,700,495
Consumer Services 0.1%
Accor S.A.		12,596		690,699
Sodexo S.A.		6,134		620,701
				1,311,400
Diversified Financials 0.0%
Wendel S.A.		2,203		270,579
Energy 1.7%
CGG S.A. *(c)		46,660		330,498
Technip S.A. (c)		9,292		633,459
Total S.A.		327,959		17,758,964
				18,722,921
Food & Staples Retailing 0.4%
Carrefour S.A.		102,370		3,529,604
Casino Guichard Perrachon S.A.		8,287		732,799
Rallye S.A.		9,508		355,188
				4,617,591
Food, Beverage & Tobacco 0.4%
Danone S.A.		36,293		2,626,238
Pernod-Ricard S.A.		9,522		1,183,431
				3,809,669
Health Care Equipment & Services 0.1%
Essilor International S.A.		6,364		775,326
Household & Personal Products 0.2%
L’Oreal S.A.		8,842		1,687,415
Insurance 0.4%
AXA S.A.		160,543		4,059,464
CNP Assurances		12,345		221,882
SCOR SE		14,503		521,988
				4,803,334
Materials 0.4%
Air Liquide S.A.		18,731		2,449,647
Arkema S.A.		7,260		584,235
Lafarge S.A.		19,546		1,426,171
				4,460,053
Media 0.6%
Eutelsat Communications S.A.		10,336		360,359
Publicis Groupe S.A.		7,054		591,623
Solocal Group *		333,637		186,463
Vivendi S.A.		194,779		4,882,853
				6,021,298
Pharmaceuticals, Biotechnology & Life Sciences 0.8%
Sanofi		83,173		8,466,214
Real Estate 0.1%
Unibail-Rodamco SE		2,872		792,989
Software & Services 0.1%
Atos SE		5,013		391,822
Cap Gemini S.A.		12,104		1,078,412
				1,470,234
Technology Hardware & Equipment 0.1%
Alcatel-Lucent *		146,949		510,208
Telecommunication Services 0.8%
Orange S.A.		504,840		8,315,378
Transportation 0.1%
Air France-KLM *(c)		94,804		817,293
Utilities 0.9%
Electricite de France S.A.		39,537		1,006,014
GDF Suez		275,757		5,610,659
Suez Environnement Co.		43,390		884,953
Veolia Environnement S.A.		84,802		1,794,410
				9,296,036
				113,703,385
Germany 8.4%
Automobiles & Components 1.2%
Bayerische Motoren Werke AG		26,186		3,089,021
Continental AG		5,593		1,310,745
Daimler AG - Reg’d		85,039		8,176,217
Volkswagen AG		2,400		607,953
				13,183,936
Banks 0.0%
Commerzbank AG *		38,508		519,507
Capital Goods 0.9%
Brenntag AG		11,019		661,147
GEA Group AG		10,064		483,333
HOCHTIEF AG		3,214		248,336
Kloeckner & Co. SE *		26,506		253,551
MAN SE		3,048		330,688
MTU Aero Engines AG		3,055		300,326
OSRAM Licht AG		8,156		429,689
Rheinmetall AG		5,388		275,854
Siemens AG - Reg’d		61,369		6,675,836
				9,658,760
Commercial & Professional Supplies 0.0%
Bilfinger SE		7,613		382,449

See financial notes 21

 Schwab Fundamental International Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Consumer Durables & Apparel 0.1%
adidas AG		16,231		1,329,901
Consumer Services 0.1%
TUI AG		51,482		959,671
Diversified Financials 0.3%
Deutsche Bank AG - Reg’d		90,915		2,907,629
Deutsche Boerse AG		9,927		822,589
				3,730,218
Food & Staples Retailing 0.2%
METRO AG		45,160		1,636,818
Food, Beverage & Tobacco 0.0%
Suedzucker AG (c)		19,160		288,782
Health Care Equipment & Services 0.2%
Fresenius Medical Care AG & Co. KGaA		10,956		920,760
Fresenius SE & Co. KGaA		19,970		1,188,074
				2,108,834
Household & Personal Products 0.1%
Beiersdorf AG		3,887		338,113
Henkel AG & Co. KGaA		4,504		456,235
				794,348
Insurance 0.8%
Allianz SE - Reg’d		31,990		5,445,166
Hannover Rueck SE		4,415		448,788
Muenchener Rueckversicherungs-Gesellschaft AG - Reg’d (c)		13,278		2,591,832
				8,485,786
Materials 1.5%
Aurubis AG		10,030		633,786
BASF SE		88,226		8,765,078
HeidelbergCement AG		14,672		1,126,229
K&S AG - Reg’d		24,725		806,021
LANXESS AG		10,575		564,436
Linde AG		9,557		1,867,529
Salzgitter AG		13,122		447,601
ThyssenKrupp AG		55,279		1,468,731
				15,679,411
Media 0.1%
ProSiebenSat.1 Media AG - Reg’d		13,758		703,407
Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Bayer AG - Reg’d		37,684		5,423,956
Merck KGaA		4,252		458,387
				5,882,343
Semiconductors & Semiconductor Equipment 0.1%
Infineon Technologies AG		47,482		558,233
Software & Services 0.2%
SAP SE		29,396		2,221,309
Telecommunication Services 0.8%
Deutsche Telekom AG - Reg’d		446,491		8,206,795
Freenet AG		13,454		435,777
				8,642,572
Transportation 0.3%
Deutsche Lufthansa AG - Reg’d *		51,099		704,739
Deutsche Post AG - Reg’d		90,707		2,986,822
				3,691,561
Utilities 1.0%
E.ON SE		473,112		7,365,409
RWE AG		122,774		3,050,863
				10,416,272
				90,874,118
Hong Kong 1.1%
Banks 0.1%
Hang Seng Bank Ltd.		31,700		617,574
Capital Goods 0.3%
Hutchison Whampoa Ltd.		119,000		1,753,398
Jardine Matheson Holdings Ltd.		12,800		790,821
Jardine Strategic Holdings Ltd.		9,500		326,016
Noble Group Ltd.		1,113,979		725,442
				3,595,677
Consumer Durables & Apparel 0.1%
Li & Fung Ltd.		582,000		592,749
Consumer Services 0.0%
Sands China Ltd.		52,400		213,603
Diversified Financials 0.0%
Hong Kong Exchanges & Clearing Ltd.		11,700		446,007
Insurance 0.1%
AIA Group Ltd.		185,800		1,235,658
Real Estate 0.3%
CK Hutchison Holdings Ltd.		33,000		715,842
New World Development Co., Ltd.		240,000		318,327
Sun Hung Kai Properties Ltd.		35,000		581,298
Swire Pacific Ltd., Class A		38,500		519,258
The Link REIT		46,000		285,337
The Wharf Holdings Ltd.		50,000		360,255
				2,780,317
Retailing 0.0%
Esprit Holdings Ltd.		490,584		464,774
Telecommunication Services 0.0%
PCCW Ltd.		469,000		312,241
Utilities 0.2%
CLP Holdings Ltd.		120,500		1,054,822
Hong Kong & China Gas Co., Ltd.		155,735		370,962
Power Assets Holdings Ltd.		38,500		388,595
				1,814,379
				12,072,979
Ireland 0.7%
Banks 0.1%
Bank of Ireland *		1,354,945		523,786
Commercial & Professional Supplies 0.1%
Experian plc		46,109		823,519
Food, Beverage & Tobacco 0.0%
Kerry Group plc, Class A		5,322		391,446

22 See financial notes

 Schwab Fundamental International Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Materials 0.3%
CRH plc		85,101		2,391,137
Smurfit Kappa Group plc		21,470		657,336
				3,048,473
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Shire plc		7,200		585,097
Technology Hardware & Equipment 0.1%
Seagate Technology plc		26,250		1,541,400
				6,913,721
Israel 0.4%
Banks 0.0%
Bank Leumi Le-Israel B.M. *		77,244		300,220
Materials 0.0%
Israel Chemicals Ltd.		56,780		397,274
Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Teva Pharmaceutical Industries Ltd.		46,459		2,823,049
Telecommunication Services 0.1%
Bezeq The Israeli Telecommunication Corp., Ltd.		306,129		579,821
				4,100,364
Italy 3.8%
Automobiles & Components 0.2%
Fiat Chrysler Automobiles N.V. *		94,258		1,403,636
Pirelli & C. S.p.A.		19,669		340,311
				1,743,947
Banks 1.0%
Banca Monte dei Paschi di Siena S.p.A. *		940,278		579,502
Banca Popolare dell’Emilia Romagna SC *		39,855		327,840
Banco Popolare SC *		29,195		461,557
Intesa Sanpaolo S.p.A.		1,182,610		3,972,979
UniCredit S.p.A.		634,468		4,554,292
Unione di Banche Italiane S.C.p.A.		79,916		634,323
				10,530,493
Capital Goods 0.1%
Finmeccanica S.p.A. *		61,187		780,679
Prysmian S.p.A.		17,249		351,760
				1,132,439
Consumer Durables & Apparel 0.0%
Luxottica Group S.p.A.		4,749		312,754
Diversified Financials 0.1%
EXOR S.p.A.		18,854		869,812
Mediobanca S.p.A.		34,010		330,154
				1,199,966
Energy 1.0%
Eni S.p.A.		554,490		10,638,362
Saipem S.p.A. *(c)		49,598		657,582
				11,295,944
Insurance 0.1%
Assicurazioni Generali S.p.A.		85,034		1,661,494
Materials 0.0%
Italcementi S.p.A.		22,135		157,719
Media 0.1%
Mediaset S.p.A. *		124,770		641,269
Telecommunication Services 0.4%
Telecom Italia S.p.A. *		2,527,448		2,983,063
Telecom Italia S.p.A. - RSP		1,569,273		1,510,258
				4,493,321
Transportation 0.1%
Atlantia S.p.A.		27,043		760,583
Utilities 0.7%
A2A S.p.A.		271,494		312,756
Enel S.p.A.		1,242,651		5,890,090
Snam S.p.A.		137,212		714,757
Terna - Rete Elettrica Nationale S.p.A.		83,258		392,507
				7,310,110
				41,240,039
Japan 22.0%
Automobiles & Components 2.9%
Aisin Seiki Co., Ltd.		25,100		1,147,771
Bridgestone Corp.		57,800		2,420,877
Daihatsu Motor Co., Ltd.		31,400		454,842
Denso Corp.		37,000		1,836,893
Fuji Heavy Industries Ltd.		20,700		692,208
Honda Motor Co., Ltd.		167,700		5,622,203
Isuzu Motors Ltd.		44,400		588,469
Mazda Motor Corp.		28,700		562,577
NHK Spring Co., Ltd.		32,600		373,223
Nissan Motor Co., Ltd.		297,200		3,085,141
Stanley Electric Co., Ltd.		11,200		251,301
Sumitomo Electric Industries Ltd.		102,500		1,448,136
Sumitomo Rubber Industries Ltd.		19,500		361,556
Suzuki Motor Corp.		33,700		1,089,255
Toyota Industries Corp.		12,300		696,602
Toyota Motor Corp.		151,100		10,517,938
Yamaha Motor Co., Ltd.		22,800		536,534
				31,685,526
Banks 1.3%
Mitsubishi UFJ Financial Group, Inc.		759,534		5,395,995
Mizuho Financial Group, Inc.		1,459,716		2,782,627
Resona Holdings, Inc.		158,858		847,041
Sumitomo Mitsui Financial Group, Inc.		90,910		3,969,548
Sumitomo Mitsui Trust Holdings, Inc.		159,000		699,908
The Bank of Yokohama Ltd.		62,000		393,487
				14,088,606
Capital Goods 3.1%
Asahi Glass Co., Ltd.		218,000		1,467,131
Daikin Industries Ltd.		11,400		768,007
FANUC Corp.		5,200		1,143,806

See financial notes 23

 Schwab Fundamental International Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Furukawa Electric Co., Ltd.		168,000		307,926
Hanwa Co., Ltd.		86,000		355,530
Hino Motors Ltd.		18,300		238,738
IHI Corp.		95,000		435,540
ITOCHU Corp.		151,100		1,860,505
JGC Corp.		19,000		395,406
JTEKT Corp.		20,200		344,040
Kajima Corp.		83,000		396,476
Kawasaki Heavy Industries Ltd.		109,000		561,770
Kinden Corp.		28,000		393,279
Komatsu Ltd.		73,400		1,476,743
Kubota Corp.		48,000		751,249
Kurita Water Industries Ltd.		12,700		330,002
LIXIL Group Corp.		28,700		598,210
Makita Corp.		7,700		384,263
Marubeni Corp.		203,700		1,261,322
Mitsubishi Corp.		149,000		3,214,928
Mitsubishi Electric Corp.		158,000		2,063,433
Mitsubishi Heavy Industries Ltd.		278,000		1,540,320
Mitsui & Co., Ltd.		204,500		2,860,162
Mitsui Engineering & Shipbuilding Co., Ltd.		140,000		251,397
Nagase & Co., Ltd.		22,100		292,075
Nidec Corp.		7,400		553,555
Nippon Sheet Glass Co., Ltd. *		216,000		218,813
NSK Ltd.		26,000		406,063
Obayashi Corp.		54,000		360,691
Shimizu Corp.		63,000		453,085
SMC Corp.		1,800		541,479
Sojitz Corp.		548,700		1,072,924
Sumitomo Corp.		147,400		1,740,458
Sumitomo Heavy Industries Ltd.		73,000		453,549
Taisei Corp.		81,000		469,220
Toshiba Corp.		453,000		1,814,971
TOTO Ltd.		21,000		297,092
Toyota Tsusho Corp.		39,600		1,018,182
				33,092,340
Commercial & Professional Supplies 0.3%
Dai Nippon Printing Co., Ltd.		112,000		1,157,027
Secom Co., Ltd.		14,600		1,034,722
Toppan Printing Co., Ltd.		115,000		964,199
				3,155,948
Consumer Durables & Apparel 1.1%
Bandai Namco Holdings, Inc.		19,900		408,813
Nikon Corp.		41,700		592,910
Panasonic Corp.		253,950		3,637,547
Sega Sammy Holdings, Inc.		22,300		311,317
Sekisui Chemical Co., Ltd.		45,000		600,027
Sekisui House Ltd.		65,800		1,019,943
Sharp Corp. *(c)		347,000		747,738
Shimano, Inc.		2,400		343,802
Sony Corp. *		118,700		3,588,507
Sumitomo Forestry Co., Ltd.		23,600		273,552
				11,524,156
Consumer Services 0.1%
Benesse Holdings, Inc.		7,800		244,458
Oriental Land Co., Ltd.		7,600		514,523
				758,981
Diversified Financials 0.1%
Credit Saison Co., Ltd.		14,000		264,738
Nomura Holdings, Inc.		77,900		505,369
ORIX Corp.		52,200		802,752
				1,572,859
Energy 0.7%
Cosmo Oil Co., Ltd. *		270,000		400,294
Idemitsu Kosan Co., Ltd.		50,900		986,025
Inpex Corp.		120,200		1,508,549
JX Holdings, Inc.		896,000		3,901,795
Showa Shell Sekiyu K.K.		37,800		364,629
TonenGeneral Sekiyu K.K.		64,000		614,228
				7,775,520
Food & Staples Retailing 0.6%
Aeon Co., Ltd.		162,900		2,026,618
Lawson, Inc.		5,200		373,932
Seven & i Holdings Co., Ltd.		82,300		3,537,609
UNY Group Holdings Co., Ltd.		69,200		391,289
				6,329,448
Food, Beverage & Tobacco 0.8%
Ajinomoto Co., Inc.		45,000		997,770
Asahi Group Holdings Ltd.		28,400		913,260
Coca-Cola West Co., Ltd.		19,300		307,060
Japan Tobacco, Inc.		61,500		2,147,633
Kewpie Corp.		16,500		402,576
Kirin Holdings Co., Ltd.		97,600		1,291,854
MEIJI Holdings Co., Ltd.		6,300		723,747
NH Foods Ltd.		23,000		502,516
Nisshin Seifun Group, Inc.		28,330		330,389
Nissin Foods Holdings Co., Ltd.		4,800		230,141
Suntory Beverage & Food Ltd.		7,000		297,712
Toyo Suisan Kaisha Ltd.		9,400		328,909
Yamazaki Baking Co., Ltd.		22,000		389,413
				8,862,980
Health Care Equipment & Services 0.2%
Alfresa Holdings Corp.		35,100		526,033
Medipal Holdings Corp.		46,100		628,919
Olympus Corp. *		6,700		241,267
Suzuken Co., Ltd.		19,730		617,399
Terumo Corp.		14,400		369,861
				2,383,479
Household & Personal Products 0.2%
Kao Corp.		32,000		1,532,447
Shiseido Co., Ltd.		32,200		580,020
Unicharm Corp.		12,500		314,627
				2,427,094
Insurance 0.3%
MS&AD Insurance Group Holdings, Inc.		25,190		720,863
Sompo Japan Nipponkoa Holdings, Inc.		22,400		731,804
T&D Holdings, Inc.		26,150		377,338
The Dai-ichi Life Insurance Co., Ltd.		41,700		685,377
Tokio Marine Holdings, Inc.		33,700		1,373,804
				3,889,186
Materials 1.9%
Air Water, Inc.		16,000		284,166

24 See financial notes

 Schwab Fundamental International Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Asahi Kasei Corp.		128,000		1,205,328
Daicel Corp.		26,000		313,459
Denki Kagaku Kogyo K.K.		76,000		310,322
DIC Corp.		128,000		387,261
Hitachi Chemical Co., Ltd.		13,400		259,370
JFE Holdings, Inc.		78,600		1,774,383
JSR Corp.		19,400		330,914
Kaneka Corp.		53,000		369,510
Kobe Steel Ltd.		457,000		830,638
Kuraray Co., Ltd.		36,900		498,988
Mitsubishi Chemical Holdings Corp.		226,300		1,408,996
Mitsubishi Materials Corp.		149,000		536,396
Mitsui Chemicals, Inc.		188,000		621,526
Mitsui Mining & Smelting Co., Ltd.		104,000		247,100
Nippon Paper Industries Co., Ltd.		22,900		399,332
Nippon Steel & Sumitomo Metal Corp.		733,000		1,906,691
Nitto Denko Corp.		13,300		852,337
Oji Holdings Corp.		154,000		684,904
Shin-Etsu Chemical Co., Ltd.		24,100		1,473,204
Showa Denko K.K.		305,000		416,931
Sumitomo Chemical Co., Ltd.		201,000		1,130,414
Sumitomo Metal Mining Co., Ltd.		46,000		674,231
Taiheiyo Cement Corp.		85,000		267,856
Taiyo Nippon Sanso Corp.		26,000		337,439
Teijin Ltd.		194,000		659,011
Toray Industries, Inc.		128,000		1,112,658
Tosoh Corp.		70,000		375,289
Toyo Seikan Group Holdings Ltd.		36,500		577,166
Ube Industries Ltd.		230,000		381,580
				20,627,400
Media 0.1%
Dentsu, Inc.		19,601		913,694
Hakuhodo DY Holdings, Inc.		43,800		468,733
				1,382,427
Pharmaceuticals, Biotechnology & Life Sciences 1.0%
Astellas Pharma, Inc.		110,500		1,720,562
Chugai Pharmaceutical Co., Ltd.		9,200		279,788
Daiichi Sankyo Co., Ltd.		67,800		1,177,597
Eisai Co., Ltd.		18,700		1,246,493
Kyowa Hakko Kirin Co., Ltd.		24,000		351,330
Mitsubishi Tanabe Pharma Corp.		18,100		307,973
Ono Pharmaceutical Co., Ltd.		3,100		335,975
Otsuka Holdings Co., Ltd.		33,500		1,057,412
Shionogi & Co., Ltd.		15,000		494,470
Taisho Pharmaceutical Holdings Co., Ltd.		4,000		281,098
Takeda Pharmaceutical Co., Ltd.		62,200		3,193,412
				10,446,110
Real Estate 0.4%
Daito Trust Construction Co., Ltd.		5,600		652,123
Daiwa House Industry Co., Ltd.		47,000		1,049,276
Mitsubishi Estate Co., Ltd.		35,000		823,804
Mitsui Fudosan Co., Ltd.		31,000		918,973
Sumitomo Realty & Development Co., Ltd.		12,500		482,448
				3,926,624
Retailing 0.5%
EDION Corp.		47,500		346,696
Fast Retailing Co., Ltd.		1,400		551,432
Isetan Mitsukoshi Holdings Ltd.		43,500		703,819
J. Front Retailing Co., Ltd.		34,000		566,566
K’s Holdings Corp.		11,500		383,982
Marui Group Co., Ltd.		29,400		320,948
Nitori Holdings Co., Ltd.		5,000		384,545
Shimamura Co., Ltd.		4,700		468,472
Takashimaya Co., Ltd.		41,000		382,630
Yamada Denki Co., Ltd.		324,800		1,329,429
				5,438,519
Semiconductors & Semiconductor Equipment 0.1%
Rohm Co., Ltd.		7,400		513,299
Tokyo Electron Ltd.		9,200		504,274
				1,017,573
Software & Services 0.5%
Fujitsu Ltd.		334,000		2,213,871
Konami Corp.		13,200		242,248
Nintendo Co., Ltd.		14,030		2,355,637
NTT Data Corp.		16,000		715,901
				5,527,657
Technology Hardware & Equipment 2.0%
Brother Industries Ltd.		25,000		397,761
Canon, Inc.		132,700		4,731,381
FUJIFILM Holdings Corp.		60,200		2,267,554
Hitachi Ltd.		595,000		4,059,627
Hoya Corp.		25,000		963,522
Ibiden Co., Ltd.		19,200		335,801
Keyence Corp.		673		359,280
Konica Minolta, Inc.		60,400		666,943
Kyocera Corp.		29,200		1,524,282
Murata Manufacturing Co., Ltd.		7,200		1,014,580
NEC Corp.		428,000		1,423,961
Nippon Electric Glass Co., Ltd.		98,000		557,293
Omron Corp.		12,400		569,384
Ricoh Co., Ltd.		99,600		1,029,339
Seiko Epson Corp.		22,800		398,415
TDK Corp.		12,700		914,809
				21,213,932
Telecommunication Services 1.4%
KDDI Corp.		169,500		4,010,766
Nippon Telegraph & Telephone Corp.		80,404		5,429,277
NTT DOCOMO, Inc.		172,300		3,051,861
SoftBank Corp.		37,400		2,337,885
				14,829,789
Transportation 1.2%
ANA Holdings, Inc.		130,000		359,416
Central Japan Railway Co.		10,600		1,893,228
East Japan Railway Co.		31,018		2,741,587
Hankyu Hanshin Holdings, Inc.		83,000		500,994
Kamigumi Co., Ltd.		31,000		310,377

See financial notes 25

 Schwab Fundamental International Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Kawasaki Kisen Kaisha Ltd.		156,000		402,966
Kintetsu Group Holdings Co., Ltd.		99,000		350,626
Mitsui O.S.K. Lines Ltd.		230,000		812,063
Nagoya Railroad Co., Ltd.		74,000		292,298
Nippon Express Co., Ltd.		164,000		941,433
Nippon Yusen K.K.		313,000		983,917
Odakyu Electric Railway Co., Ltd.		31,000		311,938
Seino Holdings Co., Ltd.		31,400		360,438
Tobu Railway Co., Ltd.		73,000		347,999
Tokyu Corp.		79,000		525,239
West Japan Railway Co.		19,363		1,072,389
Yamato Holdings Co., Ltd.		40,100		897,474
				13,104,382
Utilities 1.2%
Chubu Electric Power Co., Inc.		143,100		1,896,733
Electric Power Development Co., Ltd.		13,100		439,758
Hokkaido Electric Power Co., Inc. *		40,700		375,360
Hokuriku Electric Power Co.		32,400		478,991
Kyushu Electric Power Co., Inc. *		77,100		822,282
Osaka Gas Co., Ltd.		239,000		1,014,355
Shikoku Electric Power Co., Inc.		27,800		376,467
The Chugoku Electric Power Co., Inc.		44,800		657,724
The Kansai Electric Power Co., Inc. *		149,600		1,503,462
Toho Gas Co., Ltd.		55,000		333,029
Tohoku Electric Power Co., Inc.		74,600		938,450
Tokyo Electric Power Co., Inc. *		610,100		2,491,449
Tokyo Gas Co., Ltd.		234,000		1,350,367
				12,678,427
				237,738,963
Luxembourg 0.5%
Energy 0.1%
Tenaris S.A.		35,866		550,694
Materials 0.3%
APERAM S.A. *		7,353		280,324
ArcelorMittal (c)		309,166		3,289,975
				3,570,299
Media 0.1%
RTL Group S.A.		3,856		361,503
SES S.A.		15,292		535,927
				897,430
Telecommunication Services 0.0%
Millicom International Cellular S.A. SDR		6,446		502,896
				5,521,319
Netherlands 5.4%
Banks 0.2%
ING Groep N.V. CVA *		175,016		2,685,015
Capital Goods 0.3%
Koninklijke BAM Groep N.V. *		78,210		326,025
Koninklijke Boskalis Westminster N.V.		5,431		282,198
Koninklijke Philips N.V.		83,401		2,388,959
				2,997,182
Commercial & Professional Supplies 0.1%
Randstad Holding N.V.		11,639		694,159
Diversified Financials 0.0%
SNS Reaal N.V. *(a)(b)(c)		124,822		—
Energy 3.2%
Fugro N.V. CVA		12,722		365,883
Royal Dutch Shell plc, A Shares		653,394		20,717,286
Royal Dutch Shell plc, B Shares		408,749		13,086,422
				34,169,591
Food & Staples Retailing 0.2%
Koninklijke Ahold N.V.		138,831		2,689,728
Food, Beverage & Tobacco 0.5%
Heineken Holding N.V.		9,232		643,557
Heineken N.V.		11,512		906,892
Unilever N.V. CVA		77,582		3,384,173
				4,934,622
Insurance 0.1%
Aegon N.V.		129,815		1,024,227
Delta Lloyd N.V.		11,803		223,512
				1,247,739
Materials 0.3%
Akzo Nobel N.V.		26,098		1,996,855
Koninklijke DSM N.V.		17,030		971,231
				2,968,086
Media 0.1%
Reed Elsevier N.V.		15,700		378,643
Wolters Kluwer N.V.		17,932		580,953
				959,596
Semiconductors & Semiconductor Equipment 0.1%
ASML Holding N.V.		5,280		568,196
Software & Services 0.0%
Gemalto N.V.		3,269		303,704
Telecommunication Services 0.2%
Koninklijke (Royal) KPN N.V.		618,545		2,293,414
Ziggo N.V. *(a)(b)		5,100		227,801
				2,521,215
Transportation 0.1%
PostNL N.V. *		84,238		418,334
TNT Express N.V.		76,624		654,068
				1,072,402
				57,811,235
New Zealand 0.1%
Materials 0.0%
Fletcher Building Ltd.		62,107		393,144
Telecommunication Services 0.1%
Spark New Zealand Ltd.		301,200		681,539

26 See financial notes

 Schwab Fundamental International Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Utilities 0.0%
Meridian Energy Ltd. *(a)		220,943		338,956
				1,413,639
Norway 0.9%
Banks 0.1%
DNB A.S.A. (c)		50,027		888,739
Energy 0.5%
Akastor A.S.A. *(c)		59,897		116,935
Petroleum Geo-Services A.S.A. (c)		49,931		331,530
Statoil A.S.A.		227,366		4,820,241
				5,268,706
Food, Beverage & Tobacco 0.1%
Marine Harvest A.S.A.		20,736		252,744
Orkla A.S.A.		86,148		676,492
				929,236
Materials 0.1%
Norsk Hydro A.S.A.		124,418		589,219
Yara International A.S.A.		19,518		1,000,052
				1,589,271
Telecommunication Services 0.1%
Telenor A.S.A.		62,354		1,408,276
				10,084,228
Portugal 0.2%
Banks 0.0%
Banco Comercial Portugues S.A., Class R *(c)		2,350,067		234,022
Energy 0.1%
Galp Energia, SGPS, S.A.		39,563		540,418
Telecommunication Services 0.0%
Portugal Telecom, SGPS, S.A. - Reg’d (c)		644,366		409,015
Utilities 0.1%
EDP - Energias de Portugal S.A.		246,468		985,477
				2,168,932
Singapore 0.9%
Banks 0.3%
DBS Group Holdings Ltd.		67,556		1,073,490
Oversea-Chinese Banking Corp., Ltd.		120,097		967,126
United Overseas Bank Ltd.		51,952		959,293
				2,999,909
Capital Goods 0.1%
Keppel Corp., Ltd.		99,600		654,195
Sembcorp Industries Ltd.		77,000		262,408
				916,603
Food, Beverage & Tobacco 0.1%
Wilmar International Ltd.		196,166		481,808
Media 0.0%
Singapore Press Holdings Ltd.		110,000		348,103
Retailing 0.0%
Jardine Cycle & Carriage Ltd.		10,000		304,712
Technology Hardware & Equipment 0.1%
Flextronics International Ltd. *		74,760		861,609
Venture Corp., Ltd.		43,000		274,237
				1,135,846
Telecommunication Services 0.2%
Singapore Telecommunications Ltd.		469,486		1,568,833
Transportation 0.1%
ComfortDelGro Corp., Ltd.		149,000		345,180
Hutchison Port Holdings Trust, Class U		499,500		336,543
Singapore Airlines Ltd.		67,270		619,838
				1,301,561
				9,057,375
Spain 4.2%
Banks 1.7%
Banco Bilbao Vizcaya Argentaria S.A.		503,941		5,063,638
Banco de Sabadell S.A. *		212,975		569,591
Banco Popular Espanol S.A.		151,727		789,444
Banco Santander S.A.		1,541,410		11,653,935
CaixaBank S.A.		102,885		516,025
				18,592,633
Capital Goods 0.2%
ACS, Actividades de Construccion y Servicios S.A.		23,025		811,302
Ferrovial S.A.		38,816		880,266
Fomento de Construcciones y Contratas S.A. *		18,759		240,595
				1,932,163
Energy 0.4%
Repsol S.A.		188,257		3,880,719
Food & Staples Retailing 0.0%
Distribuidora Internacional de Alimentacion S.A.		38,510		308,422
Insurance 0.0%
Mapfre S.A.		92,538		343,880
Retailing 0.1%
Inditex S.A.		42,060		1,349,666
Software & Services 0.1%
Amadeus IT Holding S.A., A Shares		11,971		545,661
Telecommunication Services 1.1%
Telefonica S.A.		761,869		11,595,981
Transportation 0.0%
Abertis Infraestructuras S.A.		24,929		459,367
Utilities 0.6%
Acciona S.A. *		4,495		340,064
Enagas S.A.		11,371		350,201
Endesa S.A.		17,608		348,873
Gas Natural SDG S.A.		29,081		715,046
Iberdrola S.A.		569,385		3,811,057

See financial notes 27

 Schwab Fundamental International Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Red Electrica Corp. S.A.		4,730		396,964
				5,962,205
				44,970,697
Sweden 2.3%
Automobiles & Components 0.1%
Autoliv, Inc.		6,049		718,137
Banks 0.4%
Nordea Bank AB		148,122		1,881,911
Skandinaviska Enskilda Banken AB, A Shares		71,772		906,959
Svenska Handelsbanken AB, A Shares		24,644		1,137,541
Swedbank AB, A Shares		37,264		866,488
				4,792,899
Capital Goods 0.8%
Alfa Laval AB		16,269		303,675
Assa Abloy AB, B Shares		10,594		614,598
Atlas Copco AB, A Shares		34,678		1,082,404
Atlas Copco AB, B Shares		17,437		485,524
NCC AB, B Shares		9,072		297,507
Sandvik AB		102,260		1,292,471
Skanska AB, B Shares		37,570		836,052
SKF AB, B Shares		36,601		893,981
Trelleborg AB, B Shares (c)		13,252		259,702
Volvo AB, A Shares		19,593		270,802
Volvo AB, B Shares		139,605		1,928,670
				8,265,386
Commercial & Professional Supplies 0.1%
Securitas AB, B Shares		36,079		539,546
Consumer Durables & Apparel 0.1%
Electrolux AB, B Shares		23,823		713,323
Husqvarna AB, B Shares		41,470		306,740
				1,020,063
Food, Beverage & Tobacco 0.0%
Swedish Match AB		13,862		426,729
Health Care Equipment & Services 0.0%
Getinge AB, B Shares		10,995		267,232
Household & Personal Products 0.1%
Svenska Cellulosa AB, S.C.A., A Shares		3,447		87,389
Svenska Cellulosa AB, S.C.A., B Shares		43,843		1,109,007
				1,196,396
Materials 0.1%
Boliden AB		33,115		719,445
SSAB AB, A Shares *(c)		45,222		273,569
SSAB AB, B Shares *		26,715		138,748
				1,131,762
Retailing 0.2%
Hennes & Mauritz AB, B Shares (c)		45,149		1,794,977
Technology Hardware & Equipment 0.2%
Telefonaktiebolaget LM Ericsson, B Shares		226,792		2,480,373
Telecommunication Services 0.2%
Tele2 AB, B Shares		62,935		839,413
TeliaSonera AB		238,166		1,480,709
				2,320,122
				24,953,622
Switzerland 5.6%
Capital Goods 0.5%
ABB Ltd. - Reg’d *		149,699		3,280,269
Geberit AG - Reg’d		1,073		380,028
Schindler Holding AG		1,703		288,093
Schindler Holding AG - Reg’d		125		20,823
Wolseley plc		23,476		1,388,473
				5,357,686
Commercial & Professional Supplies 0.1%
Adecco S.A. - Reg’d *		13,546		1,103,954
SGS S.A. - Reg’d		226		437,897
				1,541,851
Consumer Durables & Apparel 0.2%
Cie Financiere Richemont S.A. - Reg’d		14,213		1,266,846
The Swatch Group AG - Bearer Shares		1,097		490,419
The Swatch Group AG - Reg’d		2,300		203,792
				1,961,057
Diversified Financials 0.2%
Credit Suisse Group AG - Reg’d *		56,338		1,491,101
UBS Group AG *		20,520		409,935
				1,901,036
Energy 0.2%
Transocean Ltd. (c)		64,102		1,148,312
Weatherford International plc *		52,936		770,219
				1,918,531
Food, Beverage & Tobacco 1.2%
Aryzta AG *		3,868		261,001
Chocoladefabriken Lindt & Sprungli AG		18		98,361
Chocoladefabriken Lindt & Sprungli AG - Reg’d		3		192,972
Coca-Cola HBC AG CDI *		15,747		332,210
Nestle S.A. - Reg’d		148,274		11,503,722
				12,388,266
Insurance 0.6%
Baloise Holding AG - Reg’d		2,312		300,875
Swiss Life Holding AG - Reg’d *		1,733		411,242
Swiss Re AG		19,940		1,768,825
Zurich Insurance Group AG *		11,509		3,552,289
				6,033,231
Materials 0.7%
Clariant AG - Reg’d *		19,430		426,579
Givaudan S.A. - Reg’d *		301		563,224
Glencore plc *		760,195		3,611,357
Holcim Ltd. - Reg’d *		18,412		1,479,045
Sika AG		84		288,317

28 See financial notes

 Schwab Fundamental International Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Syngenta AG - Reg’d		4,686		1,568,074
				7,936,596
Pharmaceuticals, Biotechnology & Life Sciences 1.6%
Lonza Group AG - Reg’d *		2,440		344,992
Novartis AG - Reg’d		98,498		10,053,899
Roche Holding AG		24,522		7,017,095
Roche Holding AG - Bearer Shares		990		277,143
				17,693,129
Semiconductors & Semiconductor Equipment 0.1%
STMicroelectronics N.V.		76,779		611,411
Technology Hardware & Equipment 0.1%
TE Connectivity Ltd.		19,114		1,272,037
Telecommunication Services 0.1%
Swisscom AG - Reg’d		1,452		863,223
Transportation 0.0%
Kuehne & Nagel International AG - Reg’d		3,366		504,847
				59,982,901
United Kingdom 16.7%
Automobiles & Components 0.1%
Delphi Automotive plc		7,837		650,471
GKN plc		78,869		423,021
				1,073,492
Banks 2.3%
Barclays plc		1,394,904		5,457,492
HSBC Holdings plc		1,403,919		14,024,445
Lloyds Banking Group plc		2,252,367		2,667,426
Royal Bank of Scotland Group plc *		155,458		805,432
Standard Chartered plc		143,343		2,346,840
				25,301,635
Capital Goods 0.7%
BAE Systems plc		300,753		2,329,995
Balfour Beatty plc		143,207		533,290
Bunzl plc		15,505		435,958
Carillion plc		50,319		251,059
Cobham plc		79,072		358,702
IMI plc		16,119		308,882
Meggitt plc		39,550		319,618
Rolls-Royce Holdings plc *		110,560		1,762,647
SIG plc		95,513		283,846
Smiths Group plc		24,333		425,984
The Weir Group plc		9,680		278,304
Travis Perkins plc		16,641		528,937
				7,817,222
Commercial & Professional Supplies 0.2%
Aggreko plc		12,157		306,662
Babcock International Group plc		18,062		278,623
Capita plc		21,928		383,810
G4S plc		144,586		648,542
Hays plc		120,952		284,280
Serco Group plc		100,516		205,345
				2,107,262
Consumer Durables & Apparel 0.1%
Barratt Developments plc		52,368		415,453
Burberry Group plc		15,185		404,817
Taylor Wimpey plc		126,000		319,937
				1,140,207
Consumer Services 0.3%
Carnival plc		11,235		511,161
Compass Group plc		93,174		1,647,103
InterContinental Hotels Group plc		9,682		414,056
Thomas Cook Group plc *		181,998		399,193
Whitbread plc		4,739		380,538
William Hill plc		47,009		259,730
				3,611,781
Diversified Financials 0.1%
ICAP plc		43,467		369,545
Man Group plc		355,689		1,048,752
				1,418,297
Energy 3.0%
Amec Foster Wheeler plc		33,499		469,025
BG Group plc		226,352		4,100,036
BP plc		3,506,754		25,292,094
Ensco plc, Class A		16,858		459,886
John Wood Group plc		35,707		376,225
Noble Corp., plc		34,586		598,684
Petrofac Ltd.		16,558		221,004
Subsea 7 S.A.		26,845		298,190
Tullow Oil plc		42,662		270,864
				32,086,008
Food & Staples Retailing 0.9%
Booker Group plc		114,495		253,474
J. Sainsbury plc		365,756		1,520,841
Tesco plc		1,639,772		5,527,125
WM Morrison Supermarkets plc		726,024		2,070,097
				9,371,537
Food, Beverage & Tobacco 1.5%
Associated British Foods plc		14,927		651,686
British American Tobacco plc		101,173		5,558,806
Diageo plc		90,436		2,510,717
Imperial Tobacco Group plc		57,522		2,808,828
SABMiller plc		28,872		1,528,278
Tate & Lyle plc		41,600		380,901
Unilever plc		64,931		2,846,214
				16,285,430
Health Care Equipment & Services 0.1%
Smith & Nephew plc		37,334		635,402
Household & Personal Products 0.2%
Reckitt Benckiser Group plc		24,370		2,169,036
Insurance 0.8%
Amlin plc		34,183		239,554
Aviva plc		307,897		2,477,172
Direct Line Insurance Group plc		127,970		624,755
Legal & General Group plc		169,234		672,718
Old Mutual plc		268,038		961,484
Prudential plc		62,805		1,563,689
RSA Insurance Group plc		109,668		717,421

See financial notes 29

 Schwab Fundamental International Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Standard Life plc		90,577		647,463
Willis Group Holdings plc		7,230		351,595
				8,255,851
Materials 1.5%
Anglo American plc		191,652		3,247,066
Antofagasta plc		37,205		445,317
BHP Billiton plc		195,556		4,700,474
Johnson Matthey plc		18,119		926,403
KAZ Minerals plc *		97,855		389,174
Mondi plc		27,796		562,818
Rexam plc		75,912		673,778
Rio Tinto plc		110,301		4,936,086
Vedanta Resources plc		24,270		233,106
				16,114,222
Media 0.5%
Informa plc		38,253		325,784
ITV plc		90,344		350,762
Liberty Global plc, Class A *		5,307		276,707
Liberty Global plc, Series C *		11,637		587,087
Pearson plc		54,562		1,102,636
Reed Elsevier plc		25,872		428,190
Sky plc		52,240		861,330
WPP plc		53,375		1,244,783
				5,177,279
Pharmaceuticals, Biotechnology & Life Sciences 1.5%
AstraZeneca plc		111,953		7,682,953
GlaxoSmithKline plc		382,909		8,843,921
				16,526,874
Real Estate 0.1%
Land Securities Group plc		26,918		515,117
Retailing 0.5%
Home Retail Group plc		282,582		722,092
Inchcape plc		45,937		584,321
Kingfisher plc		266,177		1,430,043
Marks & Spencer Group plc		171,370		1,451,247
Next plc		6,536		734,845
				4,922,548
Software & Services 0.0%
The Sage Group plc		62,770		466,708
Telecommunication Services 1.3%
BT Group plc		430,995		3,006,011
Cable & Wireless Communications plc		389,557		401,568
Inmarsat plc		23,402		360,357
Vodafone Group plc		2,941,943		10,365,071
				14,133,007
Transportation 0.1%
FirstGroup plc *		308,672		468,852
International Consolidated Airlines Group S.A. *		42,276		350,623
				819,475
Utilities 0.9%
Centrica plc		635,322		2,480,606
Drax Group plc		50,303		307,342
National Grid plc		246,514		3,316,437
Pennon Group plc		22,068		289,632
Severn Trent plc		16,778		546,356
SSE plc		100,358		2,377,853
United Utilities Group plc		46,660		694,123
				10,012,349
				179,960,739
Total Common Stock
(Cost $949,629,638)				1,065,172,105
Preferred Stock 0.5% of net assets
Germany 0.5%
Automobiles & Components 0.4%
Bayerische Motoren Werke AG		4,551		415,865
Volkswagen AG		13,679		3,521,599
				3,937,464
Household & Personal Products 0.1%
Henkel AG & Co. KGaA		7,144		829,828
Utilities 0.0%
RWE AG, Non Voting Shares		11,359		213,886
				4,981,178
Italy 0.0%
Banks 0.0%
Intesa Sanpaolo S.p.A. - RSP		87,221		265,472
United Kingdom 0.0%
Capital Goods 0.0%
Rolls-Royce Holdings plc, C Shares *(a)(b)		15,588,960		23,929
Total Preferred Stock
(Cost $3,911,285)				5,270,579
Rights 0.0% of net assets
Spain 0.0%
Banks 0.0%
Banco Popular Espanol S.A. *		151,488		2,891
Banco Santander S.A. *(a)		1,523,014		251,165
Total Rights
(Cost $246,220)				254,056

30 See financial notes

 Schwab Fundamental International Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Other Investment Company 1.9% of net assets
United States 1.9%
Securities Lending Collateral 1.9%
Wells Fargo Advantage Government Money Market Fund, Institutional Class 0.01% (d)		20,276,823		20,276,823
Total Other Investment Company
(Cost $20,276,823)				20,276,823
Security	Face Amount		Value
Rate, Maturity Date	Local Currency		($)
Short-Term Investments 0.4% of net assets
Time Deposits 0.4%
Brown Brothers Harriman
Australian Dolllar
1.21%, 05/01/15		3,754		2,971
Japanese Yen
0.01%, 05/01/15		1,987,831		16,649
Norwegian Krone
0.11%, 05/04/15		25,481		3,384
Pound Sterling
0.08%, 05/01/15		7,670		11,773
Swiss Franc
(1.00)%, 05/04/15		173,752		186,239
DNB
Euro
(0.19)%, 05/04/15		263,415		295,775
Swedish Krona
(0.36)%, 05/04/15		185,926		22,311
JPMorgan Chase Bank
US Dollar
0.03%, 05/01/15		3,721,942		3,721,942
Wells Fargo
Canadian Dollar
0.15%, 05/01/15		78,519		65,080
Total Short-Term Investments
(Cost $4,326,123)				4,326,124
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $995,227,432 unrealized appreciation and depreciation were $145,776,237 and ($45,703,982), respectively, with a net unrealized appreciation of $100,072,255.

At 04/30/15, the values of certain foreign securities held by the fund aggregating $986,598,141 were adjusted from their closing market values in accordance with international fair valuation procedures approved by the fund’s Board of Trustees. (See financial note 2(a) for additional information)

*	Non-income producing security.
(a)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(b)	Illiquid security. At the period end, the value of these amounted to $251,730 or 0.0% of net assets.
(c)	All or a portion of this security is on loan. Securities on loan were valued at $19,034,485.
(d)	The rate shown is the 7-day yield.

CVA —	Dutch Certificate
Reg’d —	Registered
REIT —	Real Estate Investment Trust
RSP —	Risparmio (Convertible Savings Shares)
SDR —	Swedish Depositary Receipt

In addition to the above the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Depreciation
	Contracts		($)		($)
Futures Contracts
MSCI EAFE, e-mini, Long, expires 06/19/15		35		3,314,850		(19,366	)

See financial notes 31

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	98	.0%	Common Stock		347,261,417		390,257,429
	0	.5%	Preferred Stock		1,805,239		2,090,623
	0	.0%	Rights		181		2,134
	3	.3%	Other Investment Companies		12,986,712		13,208,938
	0	.4%	Short-Term Investments		1,356,495		1,356,495
	102	.2%	Total Investments		363,410,044		406,915,619
	(2	.2)%	Other Assets and Liabilities, Net				(8,859,141	)
	100	.0%	Net Assets				398,056,478

	Number		Value
Security	of Shares		($)
Common Stock 98.0% of net assets
Australia 5.4%
Banks 0.2%
Bank of Queensland Ltd.		36,984		379,786
Bendigo & Adelaide Bank Ltd.		60,488		575,788
				955,574
Capital Goods 0.2%
Bradken Ltd.		102,348		184,075
Cardno Ltd.		47,379		128,703
GWA Group Ltd.		93,557		184,042
Monadelphous Group Ltd.		30,636		238,757
Seven Group Holdings Ltd.		25,379		146,915
				882,492
Commercial & Professional Supplies 0.4%
ALS Ltd.		90,483		373,737
Cabcharge Australia Ltd.		30,128		107,340
Mineral Resources Ltd.		24,904		126,608
SAI Global Ltd.		32,881		102,290
Seek Ltd.		11,960		152,976
SKILLED Group Ltd.		166,777		169,764
Transfield Services Ltd. *		344,623		391,004
Transpacific Industries Group Ltd.		438,198		265,278
				1,688,997
Consumer Durables & Apparel 0.1%
Billabong International Ltd. *		399,611		195,508
G.U.D. Holdings Ltd.		30,701		191,842
				387,350
Consumer Services 0.3%
Ardent Leisure Group		72,248		113,115
Aristocrat Leisure Ltd.		28,782		188,128
Echo Entertainment Group Ltd.		134,471		480,136
Flight Centre Travel Group Ltd.		5,557		190,041
Navitas Ltd.		30,260		110,130
				1,081,550
Diversified Financials 0.3%
ASX Ltd.		16,084		534,254
Challenger Ltd.		45,028		250,030
IOOF Holdings Ltd.		25,661		203,591
Perpetual Ltd.		5,600		238,484
				1,226,359
Energy 0.2%
AWE Ltd. *		178,222		200,522
Beach Energy Ltd.		243,722		212,589
Whitehaven Coal Ltd. *(a)		152,699		199,022
				612,133
Food, Beverage & Tobacco 0.3%
Bega Cheese Ltd.		29,366		111,940
GrainCorp Ltd., Class A		51,349		400,289
Treasury Wine Estates Ltd.		133,733		586,521
				1,098,750
Health Care Equipment & Services 0.6%
Ansell Ltd.		19,716		405,759
Cochlear Ltd.		5,837		384,350
Primary Health Care Ltd.		109,945		430,323
Ramsay Health Care Ltd.		8,306		409,455
Sigma Pharmaceuticals Ltd.		833,485		571,451
				2,201,338
Insurance 0.1%
nib Holdings Ltd.		77,539		223,562
Materials 0.9%
Adelaide Brighton Ltd.		98,107		349,502
Atlas Iron Ltd. (b)		556,482		26,422
CSR Ltd.		174,366		501,135
DuluxGroup Ltd.		35,392		176,523
Fortescue Metals Group Ltd. (a)		246,055		415,664
Iluka Resources Ltd.		90,294		575,385
Mount Gibson Iron Ltd.		570,144		90,947
Nufarm Ltd.		72,059		412,996
OceanaGold Corp.		55,824		106,420
OZ Minerals Ltd.		179,706		661,566
PanAust Ltd.		110,107		150,470
				3,467,030
Media 0.2%
APN News & Media Ltd. *		248,390		184,594
Seven West Media Ltd.		216,797		216,012
Southern Cross Media Group Ltd.		186,280		157,060
Ten Network Holdings Ltd. *		713,919		115,512
Village Roadshow Ltd.		25,682		113,955
				787,133
Real Estate 0.6%
Charter Hall Retail REIT		35,266		119,804
Cromwell Property Group		133,324		116,294
Dexus Property Group		101,470		589,597

32 See financial notes

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Goodman Group		117,123		574,710
Investa Office Fund		58,790		172,204
Novion Property Group		219,895		427,687
The GPT Group		150,321		529,775
				2,530,071
Retailing 0.5%
Automotive Holdings Group Ltd.		79,170		266,339
Harvey Norman Holdings Ltd.		102,080		354,016
JB Hi-Fi Ltd. (a)		24,849		383,843
Myer Holdings Ltd. (a)		380,181		415,339
Pacific Brands Ltd. *		993,607		339,806
Premier Investments Ltd.		23,350		235,294
Super Retail Group Ltd.		20,575		160,165
				2,154,802
Software & Services 0.0%
IRESS Ltd.		14,019		114,970
Telecommunication Services 0.0%
iiNET Ltd.		18,422		144,089
Transportation 0.1%
Sydney Airport		118,242		502,299
Virgin Australia International Holdings (b)(c)		176,214		—
				502,299
Utilities 0.4%
APA Group		86,922		657,390
AusNet Services		286,759		333,447
DUET Group		289,497		578,401
				1,569,238
				21,627,737
Austria 0.7%
Capital Goods 0.2%
Wienerberger AG		34,420		560,210
Zumtobel Group AG		7,382		202,622
				762,832
Energy 0.0%
Schoeller-Bleckmann Oilfield Equipment AG		1,896		133,662
Insurance 0.1%
Vienna Insurance Group AG Wiener Versicherung Gruppe		8,012		318,836
Materials 0.1%
Lenzing AG		2,545		173,403
RHI AG		7,028		201,433
				374,836
Real Estate 0.1%
IMMOFINANZ AG *		95,418		287,041
Transportation 0.2%
Flughafen Wien AG		1,760		158,097
Oesterreichische Post AG		8,435		410,531
				568,628
Utilities 0.0%
Verbund AG		9,424		159,456
				2,605,291
Belgium 1.4%
Diversified Financials 0.2%
Ackermans & van Haaren N.V.		1,264		154,480
Gimv N.V.		6,329		295,276
Groupe Bruxelles Lambert S.A.		5,495		482,361
				932,117
Energy 0.1%
Euronav N.V. *		12,623		173,705
Health Care Equipment & Services 0.1%
Agfa-Gevaert N.V. *		177,685		446,511
Fagron		2,461		108,776
				555,287
Materials 0.2%
Nyrstar N.V. *		129,359		508,713
Tessenderlo Chemie N.V. *		12,955		426,402
				935,115
Media 0.2%
Telenet Group Holding N.V. *		9,515		571,807
Real Estate 0.1%
Befimmo S.A.		1,715		118,362
Cofinimmo S.A.		2,181		240,714
				359,076
Retailing 0.1%
S.A. D’Ieteren N.V.		14,449		564,841
Technology Hardware & Equipment 0.1%
Barco N.V.		3,514		237,540
EVS Broadcast Equipment S.A.		3,526		137,759
				375,299
Telecommunication Services 0.1%
Mobistar S.A. *		27,772		530,124
Transportation 0.1%
bpost S.A.		11,317		324,554
Utilities 0.1%
Elia System Operator S.A./N.V.		6,836		303,351
				5,625,276
Canada 8.0%
Automobiles & Components 0.1%
Linamar Corp.		5,632		334,512
Martinrea International, Inc.		20,210		201,849
				536,361
Banks 0.2%
Canadian Western Bank		6,762		175,817
Genworth MI Canada, Inc.		8,492		247,405
Home Capital Group, Inc.		4,671		184,362
Laurentian Bank of Canada		4,695		187,917
				795,501
Capital Goods 0.7%
Aecon Group, Inc.		23,241		252,540
ATS Automation Tooling Systems, Inc. *		10,161		112,095
Bird Construction, Inc.		13,653		129,570
CAE, Inc.		33,751		418,775

See financial notes 33

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
MacDonald, Dettwiler & Associates Ltd.		4,547		360,971
New Flyer Industries, Inc.		10,702		127,022
Richelieu Hardware Ltd.		3,227		168,505
Russel Metals, Inc.		21,591		493,918
Toromont Industries Ltd.		11,087		288,639
Wajax Corp.		8,247		174,510
WSP Global, Inc.		6,645		236,830
				2,763,375
Commercial & Professional Supplies 0.4%
Morneau Shepell, Inc.		10,227		150,968
Progressive Waste Solutions Ltd.		17,953		518,874
Ritchie Bros. Auctioneers, Inc.		8,898		225,160
Stantec, Inc.		8,908		240,623
Transcontinental, Inc., Class A		31,155		479,784
				1,615,409
Consumer Durables & Apparel 0.3%
Dorel Industries, Inc., Class B		13,178		387,749
Gildan Activewear, Inc.		15,419		488,705
lululemon athletica, Inc. *		4,867		309,736
				1,186,190
Consumer Services 0.0%
Great Canadian Gaming Corp. *		7,592		148,820
Diversified Financials 0.3%
AGF Management Ltd., Class B		45,947		294,000
CI Financial Corp.		19,082		560,835
Dundee Corp., Class A *		16,287		156,863
				1,011,698
Energy 1.8%
Advantage Oil & Gas Ltd. *		41,018		253,961
AltaGas Ltd.		12,379		420,671
Calfrac Well Services Ltd.		18,158		151,103
Enbridge Income Fund Holdings, Inc.		4,428		142,658
Enerflex Ltd.		23,431		314,226
Ensign Energy Services, Inc.		46,746		372,728
Freehold Royalties Ltd.		8,162		120,553
Gibson Energy, Inc.		23,936		551,927
Gran Tierra Energy, Inc. *		42,924		160,454
Keyera Corp.		15,413		542,553
Lightstream Resources Ltd. (a)		316,720		354,390
MEG Energy Corp. *		5,958		114,913
Mullen Group Ltd.		20,902		362,428
Newalta Corp.		11,555		157,355
NuVista Energy Ltd. *		16,654		123,404
Parkland Fuel Corp.		23,274		508,112
Pason Systems, Inc.		7,715		138,889
Peyto Exploration & Development Corp.		9,526		276,897
Precision Drilling Corp.		71,423		519,763
Savanna Energy Services Corp. (a)		43,216		71,639
ShawCor Ltd.		8,531		288,845
Trican Well Service Ltd.		69,576		294,105
Trilogy Energy Corp.		10,648		81,283
Trinidad Drilling Ltd.		48,731		204,779
Veresen, Inc.		28,955		435,345
				6,962,981
Food & Staples Retailing 0.1%
The Jean Coutu Group (PJC), Inc., Class A		13,803		268,624
The North West Co., Inc.		15,503		318,155
				586,779
Food, Beverage & Tobacco 0.2%
Cott Corp.		37,724		328,932
Maple Leaf Foods, Inc.		22,367		429,172
Rogers Sugar, Inc. (a)		38,510		145,230
				903,334
Insurance 0.1%
Industrial Alliance Insurance & Financial Services, Inc.		11,552		420,430
Materials 1.8%
Agnico-Eagle Mines Ltd.		21,767		658,873
Alamos Gold, Inc.		16,075		111,119
Canexus Corp.		40,423		67,009
Canfor Corp. *		9,776		193,737
Cascades, Inc.		53,765		311,939
CCL Industries, Inc., Class B		2,313		265,923
Centerra Gold, Inc.		55,912		289,176
Chemtrade Logistics Income Fund		11,556		205,451
Dominion Diamond Corp.		9,527		187,776
Eldorado Gold Corp.		70,812		352,739
Franco-Nevada Corp.		4,338		225,224
HudBay Minerals, Inc.		37,038		366,236
IAMGOLD Corp. *		243,281		544,433
Labrador Iron Ore Royalty Corp.		7,331		87,498
Lundin Mining Corp. *		77,182		383,831
Major Drilling Group International, Inc.		29,327		157,269
Methanex Corp.		9,854		593,037
Nevsun Resources Ltd.		30,493		120,304
New Gold, Inc. *		42,870		143,907
Pan American Silver Corp.		29,320		280,685
SEMAFO, Inc. *		45,112		138,720
Sherritt International Corp.		236,136		489,300
Silver Wheaton Corp.		15,761		310,909
Thompson Creek Metals Co., Inc. *		95,205		122,311
West Fraser Timber Co., Ltd.		10,424		536,363
				7,143,769
Media 0.4%
Aimia, Inc.		37,114		412,207
Cineplex, Inc.		10,682		427,634
Cogeco Cable, Inc.		3,631		207,989
Corus Entertainment, Inc., Class B		18,751		288,297
Entertainment One Ltd.		25,212		121,454
				1,457,581
Real Estate 0.5%
Boardwalk Real Estate Investment Trust		2,936		147,859
Calloway Real Estate Investment Trust		6,958		176,185
Canadian Real Estate Investment Trust		3,284		124,147

34 See financial notes

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Cominar Real Estate Investment Trust		7,985		126,542
Dream Office Real Estate Investment Trust		5,168		118,566
First Capital Realty, Inc.		9,485		157,232
FirstService Corp.		2,141		140,154
Granite Real Estate Investment Trust		5,498		190,673
H&R Real Estate Investment Trust		13,440		257,883
RioCan Real Estate Investment Trust		16,223		401,507
				1,840,748
Retailing 0.3%
Dollarama, Inc.		8,284		475,686
Hudson’s Bay Co.		12,993		283,983
Reitmans (Canada) Ltd., Class A		58,646		339,773
Sears Canada, Inc. *(a)		34,094		259,414
				1,358,856
Software & Services 0.2%
Constellation Software, Inc.		626		245,419
DH Corp.		9,491		332,598
Open Text Corp.		4,910		248,084
				826,101
Telecommunication Services 0.0%
Manitoba Telecom Services, Inc.		5,667		121,983
Transportation 0.2%
TransForce, Inc.		18,612		420,370
Westshore Terminals Investment Corp.		6,362		168,265
				588,635
Utilities 0.4%
Capital Power Corp.		22,832		470,265
Just Energy Group, Inc. (a)		53,066		285,013
Northland Power, Inc.		11,653		166,610
Superior Plus Corp.		41,439		476,385
				1,398,273
				31,666,824
Denmark 1.3%
Banks 0.2%
Jyske Bank A/S - Reg’d *		6,679		327,063
Sydbank A/S		10,397		390,284
				717,347
Capital Goods 0.1%
NKT Holding A/S		5,780		366,799
Rockwool International A/S, B Shares		1,620		214,638
				581,437
Consumer Durables & Apparel 0.1%
Pandora A/S		4,702		486,006
Food, Beverage & Tobacco 0.1%
Royal Unibrew A/S *		800		153,150
Schouw & Co.		3,332		170,876
				324,026
Health Care Equipment & Services 0.2%
Coloplast A/S, Class B		4,426		361,268
GN Store Nord A/S		14,609		315,401
William Demant Holding A/S *		2,183		179,582
				856,251
Insurance 0.1%
Topdanmark A/S *		5,870		176,055
Tryg A/S		2,463		267,468
				443,523
Materials 0.2%
Chr. Hansen Holding A/S		5,207		252,081
Novozymes A/S, B Shares		11,938		550,778
				802,859
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
H. Lundbeck A/S *		13,335		259,379
Software & Services 0.1%
SimCorp A/S		7,061		244,239
Transportation 0.1%
D/S Norden A/S *(a)		15,965		320,313
DFDS A/S		2,064		230,964
				551,277
				5,266,344
Finland 1.4%
Capital Goods 0.4%
Cargotec Oyj, B Shares		9,986		402,592
Cramo Oyj		10,893		202,412
Konecranes Oyj		11,675		378,527
Outotec Oyj (a)		47,767		333,745
Ramirent Oyj		19,353		148,732
Uponor Oyj		12,777		196,763
				1,662,771
Commercial & Professional Supplies 0.1%
Caverion Corp.		30,750		303,498
Consumer Durables & Apparel 0.2%
Amer Sports Oyj		20,871		522,318
Food, Beverage & Tobacco 0.0%
Raisio Oyj, V Shares		26,111		116,102
Materials 0.4%
Huhtamaki Oyj		19,775		632,162
Kemira Oyj		24,887		291,365
Metsa Board Oyj		45,344		267,916
Outokumpu Oyj *		55,467		334,668
Tikkurila Oyj		8,282		170,577
				1,696,688
Media 0.1%
Sanoma Oyj (a)		79,283		417,612
Real Estate 0.0%
Sponda Oyj		27,602		120,712
Retailing 0.1%
Stockmann Oyj Abp, B Shares *		24,612		196,627
Software & Services 0.1%
Tieto Oyj		20,277		486,250
				5,522,578

See financial notes 35

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
France 4.6%
Automobiles & Components 0.1%
Plastic Omnium S.A.		7,990		222,493
Banks 0.2%
Natixis S.A.		89,341		739,517
Capital Goods 0.3%
Areva S.A. *		12,977		112,927
Mersen		9,132		249,682
Saft Groupe S.A.		6,168		246,001
Zodiac Aerospace		17,278		634,504
				1,243,114
Commercial & Professional Supplies 0.5%
Bureau Veritas S.A.		21,315		501,916
Derichebourg S.A. *		69,512		216,988
Edenred		21,143		566,830
Societe BIC S.A.		3,769		645,595
				1,931,329
Consumer Durables & Apparel 0.1%
Beneteau S.A.		8,382		131,764
SEB S.A.		6,064		561,548
				693,312
Diversified Financials 0.1%
Eurazeo S.A.		5,359		383,595
Energy 0.1%
Bourbon S.A. (a)		11,506		226,738
Etablissements Maurel et Prom *		15,346		143,626
				370,364
Food, Beverage & Tobacco 0.1%
Remy Cointreau S.A.		3,231		243,084
Vilmorin & Cie S.A.		1,578		132,019
				375,103
Health Care Equipment & Services 0.1%
BioMerieux		2,368		255,463
Orpea		3,735		246,033
				501,496
Insurance 0.1%
Euler Hermes Group		2,598		284,424
Materials 0.2%
Eramet *		2,229		183,360
Imerys S.A.		7,070		538,117
Vicat S.A.		4,836		348,709
				1,070,186
Media 0.6%
Havas S.A.		41,656		347,994
IPSOS		7,468		220,302
JC Decaux S.A.		9,372		370,232
Metropole Television S.A.		22,996		479,946
Societe Television Francaise (a)		31,010		541,982
Technicolor S.A. - Reg’d *		60,685		411,720
				2,372,176
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Ipsen S.A.		4,847		278,354
Real Estate 0.8%
Fonciere Des Regions		5,518		522,381
Gecina S.A.		3,518		482,468
ICADE		5,516		479,758
Klepierre		22,019		1,068,046
Mercialys S.A.		8,601		213,722
Nexity S.A.		11,389		500,164
				3,266,539
Retailing 0.1%
Groupe Fnac *		4,089		246,279
Software & Services 0.4%
Alten S.A.		5,247		256,120
Altran Technologies S.A.		21,965		239,556
Dassault Systemes S.A.		6,606		509,034
Sopra Steria Group		1,541		136,101
UBISOFT Entertainment *		28,354		522,841
				1,663,652
Technology Hardware & Equipment 0.2%
Ingenico		2,600		326,229
Neopost S.A.		9,700		467,850
				794,079
Telecommunication Services 0.1%
Iliad S.A.		1,542		364,207
Transportation 0.4%
Aeroports de Paris		4,007		493,949
Bollore S.A.		61,743		352,864
Groupe Eurotunnel SE - Reg’d		35,059		562,085
Norbert Dentressangle S.A.		882		214,522
				1,623,420
				18,423,639
Germany 3.4%
Automobiles & Components 0.2%
ElringKlinger AG		4,906		135,059
Grammer AG		3,032		116,447
Leoni AG		8,881		568,745
SAF-Holland S.A.		8,112		122,816
				943,067
Banks 0.0%
Aareal Bank AG		3,579		153,939
Capital Goods 0.7%
Bauer AG *		7,929		138,002
BayWa AG		6,768		253,781
Deutz AG		33,891		164,039
DMG MORI SEIKI AG		9,749		342,063
Duerr AG		2,076		212,494
Heidelberger Druckmaschinen AG *		83,058		222,721
Indus Holding AG		6,008		314,275
KION Group AG		3,307		146,715
Krones AG		1,946		214,763
Norma Group SE		3,410		181,131
Pfeiffer Vacuum Technology AG		1,993		185,731
SGL Carbon SE *(a)		8,368		135,666
Vossloh AG		3,847		242,093
				2,753,474
Consumer Durables & Apparel 0.2%
Gerry Weber International AG		3,856		126,036
Hugo Boss AG		2,844		349,955

36 See financial notes

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Puma SE		753		153,600
				629,591
Diversified Financials 0.0%
Aurelius AG		3,437		164,803
Health Care Equipment & Services 0.3%
Celesio AG		18,148		538,532
Rhoen-Klinikum AG		16,186		448,112
				986,644
Insurance 0.1%
Talanx AG *		6,440		204,860
Materials 0.5%
Evonik Industries AG		13,637		524,021
FUCHS PETROLUB SE		4,323		161,292
Symrise AG		10,541		639,136
Wacker Chemie AG		4,129		512,113
				1,836,562
Media 0.1%
Axel Springer SE		7,111		396,710
Kabel Deutschland Holding AG *		1,426		191,108
				587,818
Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Gerresheimer AG		5,116		289,549
STADA Arzneimittel AG		11,946		436,971
				726,520
Real Estate 0.1%
Deutsche Euroshop AG		3,392		168,851
GAGFAH S.A. (a)		11,151		238,405
				407,256
Retailing 0.1%
Fielmann AG		2,592		176,065
Takkt AG		8,353		152,181
				328,246
Semiconductors & Semiconductor Equipment 0.1%
Aixtron SE *(a)		20,675		136,914
Kontron AG *		21,438		120,995
SMA Solar Technology AG *(a)		7,352		109,143
				367,052
Software & Services 0.3%
Bechtle AG		3,330		243,879
Software AG		16,497		476,248
United Internet AG - Reg’d		6,566		293,560
Wirecard AG		2,992		131,406
				1,145,093
Technology Hardware & Equipment 0.1%
Jenoptik AG		10,938		131,873
Wincor Nixdorf AG		9,173		347,204
				479,077
Telecommunication Services 0.2%
Drillisch AG		3,362		154,616
Telefonica Deutschland Holding AG *		106,249		658,490
				813,106
Transportation 0.2%
Fraport AG Frankfurt Airport Services Worldwide		6,718		424,908
Hamburger Hafen und Logistik AG		6,445		142,150
Sixt SE		8,317		398,259
				965,317
				13,492,425
Greece 0.0%
Banks 0.0%
TT Hellenic Postbank S.A. *(b)(c)		24,275		—
Hong Kong 2.8%
Automobiles & Components 0.0%
Xinyi Glass Holdings Ltd.		274,000		182,590
Banks 0.1%
The Bank of East Asia Ltd.		115,800		502,400
Capital Goods 0.1%
Johnson Electric Holdings Ltd.		53,500		198,755
Consumer Durables & Apparel 0.1%
Techtronic Industries Co., Ltd.		135,500		479,521
Consumer Services 0.3%
Cafe De Coral Holdings Ltd.		48,000		179,977
Galaxy Entertainment Group Ltd.		59,000		283,547
MGM China Holdings Ltd.		54,800		103,444
SJM Holdings Ltd.		317,000		401,909
Wynn Macau Ltd.		131,600		266,379
				1,235,256
Diversified Financials 0.1%
First Pacific Co., Ltd.		488,000		473,484
Food & Staples Retailing 0.1%
Dairy Farm International Holdings Ltd.		30,800		290,752
Media 0.1%
Television Broadcasts Ltd.		40,200		261,895
Real Estate 1.0%
Great Eagle Holdings Ltd.		40,000		147,593
Hang Lung Group Ltd.		80,000		423,553
Hang Lung Properties Ltd.		161,000		544,271
Henderson Land Development Co., Ltd.		51,040		409,193
Hongkong Land Holdings Ltd.		89,600		725,760
Hysan Development Co., Ltd.		30,000		138,620
Sino Land Co., Ltd.		298,000		524,289
Swire Properties Ltd.		71,600		245,985
Wheelock & Co., Ltd.		124,000		698,235
				3,857,499
Retailing 0.2%
Chow Sang Sang Holdings International Ltd.		104,000		239,489
Giordano International Ltd.		354,000		177,216
Luk Fook Holdings International Ltd.		76,000		237,634
				654,339
Technology Hardware & Equipment 0.1%
VTech Holdings Ltd.		34,500		479,762

See financial notes 37

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Telecommunication Services 0.0%
Hutchison Telecommunications Hong Kong Holdings Ltd.		406,000		187,792
Transportation 0.6%
Cathay Pacific Airways Ltd.		265,000		682,388
MTR Corp., Ltd.		138,500		680,688
Orient Overseas International Ltd.		94,500		579,992
Pacific Basin Shipping Ltd.		802,000		296,998
				2,240,066
				11,044,111
Ireland 1.0%
Capital Goods 0.4%
DCC plc		9,822		624,812
Fly Leasing Ltd. ADR		10,858		160,373
Grafton Group plc		45,391		572,819
Kingspan Group plc		18,740		371,804
				1,729,808
Consumer Services 0.1%
Paddy Power plc		3,483		311,384
Food & Staples Retailing 0.0%
Fyffes plc		92,789		125,141
Food, Beverage & Tobacco 0.1%
C&C Group plc		55,170		223,553
Glanbia plc		14,624		271,027
				494,580
Health Care Equipment & Services 0.1%
UDG Healthcare plc		56,516		461,955
Materials 0.1%
James Hardie Industries plc CDI		25,843		296,823
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
ICON plc *		4,126		265,467
Transportation 0.1%
Aer Lingus Group plc		54,161		141,090
Irish Continental Group plc		33,742		151,549
				292,639
				3,977,797
Israel 1.1%
Banks 0.2%
Bank Hapoalim B.M.		80,124		400,777
Israel Discount Bank Ltd., Class A *		148,324		260,563
Mizrahi Tefahot Bank Ltd. *		16,409		183,534
				844,874
Capital Goods 0.1%
Discount Investment Corp., Ltd. - Reg’d		64,902		115,767
Elbit Systems Ltd.		3,862		305,611
				421,378
Energy 0.2%
Delek Group Ltd.		961		268,100
Oil Refineries Ltd. *		721,390		257,763
Paz Oil Co., Ltd.		2,085		318,510
				844,373
Food & Staples Retailing 0.1%
Shufersal Ltd. *		56,054		128,393
Materials 0.1%
The Israel Corp., Ltd.		1,203		443,122
Software & Services 0.3%
Check Point Software Technologies Ltd. *		8,696		725,942
NICE-Systems Ltd.		4,814		289,373
				1,015,315
Telecommunication Services 0.1%
B Communications Ltd. *		6,024		99,129
Cellcom Israel Ltd. *		53,683		247,284
Partner Communications Co., Ltd. *		62,149		156,439
				502,852
				4,200,307
Italy 2.4%
Automobiles & Components 0.0%
Piaggio & C. S.p.A.		60,455		183,365
Banks 0.5%
Banca Carige S.p.A. *(a)		3,219,304		262,521
Banca Popolare Di Milano Scarl *		721,354		743,303
Banca Popolare Di Sondrio Scarl		96,810		439,376
Credito Valtellinese Scarl *		271,789		339,178
				1,784,378
Capital Goods 0.1%
Astaldi S.p.A.		16,153		140,426
C.I.R. S.p.A. - Compagnie Industriali Riunite *		225,039		269,105
Danieli & Co., Officine Meccaniche S.p.A.		2,106		51,243
				460,774
Consumer Durables & Apparel 0.2%
De’Longhi S.p.A.		6,675		150,550
Geox S.p.A. *(a)		36,163		132,142
Prada S.p.A. (a)		34,700		188,391
Safilo Group S.p.A. *		11,337		164,918
Tod’s S.p.A.		1,767		162,122
				798,123
Consumer Services 0.2%
Autogrill S.p.A. *		26,051		249,159
International Game Technology plc *		26,454		538,603
				787,762
Energy 0.2%
ERG S.p.A.		30,321		436,809
Saras S.p.A. *		247,667		480,215
				917,024
Food & Staples Retailing 0.0%
MARR S.p.A.		7,528		151,214
Food, Beverage & Tobacco 0.1%
Davide Campari-Milano S.p.A.		30,539		236,182

38 See financial notes

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Parmalat S.p.A.		110,048		304,774
				540,956
Health Care Equipment & Services 0.1%
Sorin S.p.A. *		61,101		193,472
Insurance 0.1%
Mediolanum S.p.A.		22,777		191,184
Societa Cattolica di Assicurazioni S.c.r.l.		16,316		139,392
Unipol Gruppo Finanziario S.p.A.		30,231		158,597
				489,173
Materials 0.1%
Buzzi Unicem S.p.A.		30,920		497,661
Media 0.0%
RCS MediaGroup S.p.A. *(a)		121,255		166,754
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Recordati S.p.A.		11,014		219,463
Real Estate 0.0%
Beni Stabili S.p.A		168,045		138,565
Retailing 0.1%
World Duty Free S.p.A. *		18,883		210,797
Technology Hardware & Equipment 0.0%
Esprinet S.p.A.		15,599		149,928
Transportation 0.2%
Alitalia S.p.A. *(b)(c)		14,782		—
Ansaldo STS S.p.A.		17,376		184,722
ASTM S.p.A.		15,466		219,886
Societa Iniziative Autostradali e Servizi S.p.A.		21,919		253,150
				657,758
Utilities 0.4%
ACEA S.p.A.		14,119		190,098
Enel Green Power S.p.A.		203,528		395,218
Hera S.p.A.		183,424		483,842
Iren S.p.A.		230,199		337,944
				1,407,102
				9,754,269
Japan 38.4%
Automobiles & Components 3.2%
Aisan Industry Co., Ltd.		14,100		132,728
Akebono Brake Industry Co., Ltd.		37,800		132,292
Calsonic Kansei Corp.		90,000		656,070
Exedy Corp.		12,800		314,362
F.C.C. Co., Ltd.		16,900		274,193
Futaba Industrial Co., Ltd.		54,800		275,364
G-Tekt Corp.		12,700		122,161
Keihin Corp.		24,600		402,938
Koito Manufacturing Co., Ltd.		20,800		727,840
KYB Co., Ltd.		81,000		307,548
Mitsuba Corp.		8,300		174,938
Mitsubishi Motors Corp.		48,700		448,097
Musashi Seimitsu Industry Co., Ltd.		9,200		194,731
NGK Spark Plug Co., Ltd.		21,800		610,472
Nifco, Inc.		9,000		318,746
Nippon Seiki Co., Ltd.		14,000		281,480
Nissan Shatai Co., Ltd.		36,200		465,989
Nissin Kogyo Co., Ltd.		16,900		278,551
NOK Corp.		23,900		751,065
Pacific Industrial Co., Ltd.		16,900		139,734
Press Kogyo Co., Ltd.		57,000		252,659
Riken Corp.		33,000		128,321
Sanden Holdings Corp.		33,000		153,798
Showa Corp.		25,300		267,289
Sumitomo Riko Co., Ltd.		25,700		222,312
Tachi-S Co., Ltd.		20,000		307,699
Takata Corp. (a)		21,900		270,761
The Yokohama Rubber Co., Ltd.		59,000		634,874
Tokai Rika Co., Ltd.		20,400		498,426
Topre Corp.		8,700		140,381
Toyo Tire & Rubber Co., Ltd.		15,300		293,074
Toyoda Gosei Co., Ltd.		28,800		666,333
Toyota Boshoku Corp.		44,600		662,176
TS Tech Co., Ltd.		16,000		476,469
Unipres Corp.		22,400		462,458
Yorozu Corp.		8,700		177,720
				12,624,049
Banks 2.3%
Aozora Bank Ltd.		148,000		553,585
Fukuoka Financial Group, Inc.		123,000		706,665
Hokuhoku Financial Group, Inc.		217,000		518,941
North Pacific Bank Ltd.		52,500		207,327
Senshu Ikeda Holdings, Inc.		25,900		114,951
Seven Bank Ltd.		58,300		314,113
Shinsei Bank Ltd.		179,000		366,290
Suruga Bank Ltd.		13,200		290,973
The 77 Bank Ltd.		34,000		196,220
The Awa Bank Ltd.		26,000		154,342
The Bank of Kyoto Ltd.		28,000		305,242
The Chiba Bank Ltd.		72,000		591,726
The Chugoku Bank Ltd.		20,200		324,536
The Daishi Bank Ltd.		39,000		147,080
The Gunma Bank Ltd.		48,000		339,901
The Hachijuni Bank Ltd.		45,000		350,807
The Higo Bank Ltd.		26,000		167,109
The Hiroshima Bank Ltd.		45,000		262,837
The Hyakugo Bank Ltd.		31,000		152,394
The Iyo Bank Ltd.		23,400		291,493
The Joyo Bank Ltd.		53,000		289,907
The Juroku Bank Ltd.		44,000		175,170
The Kagoshima Bank Ltd.		21,000		151,158
The Keiyo Bank Ltd.		35,000		207,178
The Musashino Bank Ltd.		4,500		162,924
The Nishi-Nippon City Bank Ltd.		91,000		289,966
The Ogaki Kyoritsu Bank Ltd.		56,000		188,749
The San-in Godo Bank Ltd.		25,000		239,245
The Shiga Bank Ltd.		22,000		115,738
The Shizuoka Bank Ltd.		50,000		550,458
TOMONY Holdings, Inc.		27,100		128,650
Yamaguchi Financial Group, Inc.		31,000		388,579
				9,244,254
Capital Goods 6.7%
Aica Kogyo Co., Ltd.		9,900		227,367
Amada Holdings Co., Ltd.		52,700		531,809
Asahi Diamond Industrial Co., Ltd.		10,400		127,854
Central Glass Co., Ltd.		90,000		413,522
Chiyoda Corp.		34,000		308,545

See financial notes 39

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Chudenko Corp.		7,000		133,274
CKD Corp.		14,100		129,210
COMSYS Holdings Corp.		38,700		539,159
Daifuku Co., Ltd.		19,200		255,784
Daihen Corp.		31,000		151,328
DMG Mori Seiki Co., Ltd.		17,700		288,670
Ebara Corp.		120,000		533,465
Fuji Electric Co., Ltd.		115,000		542,328
Fuji Machine Manufacturing Co., Ltd.		20,938		258,369
Fujikura Ltd.		148,000		704,902
Fujitec Co., Ltd.		11,900		129,392
Furukawa Co., Ltd.		63,000		109,317
Futaba Corp.		9,700		161,574
Glory Ltd.		13,300		368,108
GS Yuasa Corp.		78,000		366,699
Hazama Ando Corp.		18,500		104,969
Hitachi Construction Machinery Co., Ltd.		31,100		552,137
Hitachi Koki Co., Ltd.		16,500		135,701
Hitachi Zosen Corp.		66,700		367,711
Hoshizaki Electric Co., Ltd.		7,100		417,707
Inaba Denki Sangyo Co., Ltd.		10,300		372,417
Inabata & Co., Ltd.		35,200		370,299
Iseki & Co., Ltd.		70,000		144,761
Iwatani Corp.		72,000		486,970
Kandenko Co., Ltd.		67,000		425,073
Kanematsu Corp.		255,000		400,675
Keihan Electric Railway Co., Ltd.		77,000		446,589
Kitz Corp.		38,400		194,746
Komori Corp.		15,100		188,041
Kuroda Electric Co., Ltd.		18,100		325,381
Kyowa Exeo Corp.		41,700		486,492
Kyudenko Corp.		21,000		279,236
Mabuchi Motor Co., Ltd.		5,600		335,316
Maeda Corp.		31,000		225,521
Maeda Road Construction Co., Ltd.		23,000		379,054
Makino Milling Machine Co., Ltd.		20,000		182,673
Meidensha Corp.		48,000		159,160
Minebea Co., Ltd.		37,000		567,326
Mirait Holdings Corp.		32,000		361,622
MISUMI Group, Inc.		12,400		465,349
Miura Co., Ltd.		18,000		202,069
Nabtesco Corp.		17,300		475,820
Nachi-Fujikoshi Corp.		28,000		163,720
Namura Shipbuilding Co., Ltd.		12,800		117,104
NGK Insulators Ltd.		29,000		651,448
Nichias Corp.		39,000		235,332
Nichiha Corp.		11,900		132,012
Nippo Corp.		18,000		301,033
Nippon Densetsu Kogyo Co., Ltd.		13,300		223,338
Nippon Steel & Sumikin Bussan Corp.		81,000		275,921
Nishimatsu Construction Co., Ltd.		82,000		302,005
Nishio Rent All Co., Ltd.		3,300		93,952
Nisshinbo Holdings, Inc.		49,000		507,541
Nitta Corp.		5,500		150,717
Nitto Boseki Co., Ltd.		31,000		118,142
Nitto Kogyo Corp.		5,900		106,804
Noritz Corp.		13,500		231,116
NTN Corp.		129,000		704,150
Oiles Corp.		7,280		138,749
OKUMA Corp.		24,000		260,034
Okumura Corp.		46,000		220,345
OSG Corp.		12,300		255,740
Penta-Ocean Construction Co., Ltd.		82,300		308,486
Ryobi Ltd.		69,000		225,297
Sanki Engineering Co., Ltd.		25,400		202,856
Sankyo Tateyama, Inc.		12,200		228,022
Sanwa Holdings Corp.		40,000		301,895
Shinmaywa Industries Ltd.		25,000		259,896
SHO-BOND Holdings Co., Ltd.		2,800		123,440
Sintokogio Ltd.		19,400		162,499
Tadano Ltd.		11,000		159,566
Taikisha Ltd.		8,300		222,809
Takara Standard Co., Ltd.		27,000		219,662
Takasago Thermal Engineering Co., Ltd.		18,200		236,051
The Japan Steel Works Ltd.		115,000		530,714
The Nippon Road Co., Ltd.		27,000		145,679
THK Co., Ltd.		18,400		462,226
Toa Corp.		83,000		145,320
Toda Corp.		71,000		292,630
Toshiba Machine Co., Ltd.		34,000		150,981
Toshiba Plant Systems & Services Corp.		8,400		116,793
Totetsu Kogyo Co., Ltd.		6,000		135,306
Toyo Engineering Corp.		48,000		134,280
Trusco Nakayama Corp.		9,700		326,633
Tsubakimoto Chain Co.		26,000		212,855
Ushio, Inc.		31,400		411,765
Yamazen Corp.		28,000		249,101
Yuasa Trading Co., Ltd.		8,600		189,397
				26,676,853
Commercial & Professional Supplies 0.9%
Aeon Delight Co., Ltd.		6,400		169,488
Daiseki Co., Ltd.		6,500		115,674
Duskin Co., Ltd.		24,500		419,978
Kokuyo Co., Ltd.		45,100		411,971
Meitec Corp.		5,400		173,896
Moshi Moshi Hotline, Inc.		16,200		175,012
Nissha Printing Co., Ltd.		10,600		205,256
Nomura Co., Ltd.		15,100		161,478
Okamura Corp.		24,600		191,756
Park24 Co., Ltd.		14,100		281,612
Sato Holdings Corp.		5,500		127,019
Sohgo Security Services Co., Ltd.		17,400		567,198
Temp Holdings Co., Ltd.		8,800		278,723
Toppan Forms Co., Ltd.		24,900		298,455
				3,577,516
Consumer Durables & Apparel 1.9%
Alpine Electronics, Inc.		16,300		331,237
Asics Corp.		17,800		456,753
Casio Computer Co., Ltd.		34,700		701,576
Fujitsu General Ltd.		14,000		201,641
Funai Electric Co., Ltd. *		25,600		302,428
Gunze Ltd.		93,000		250,052
Haseko Corp.		41,600		410,770
Heiwa Corp.		6,400		133,437
Kurabo Industries Ltd.		97,000		169,981
Misawa Homes Co., Ltd.		12,100		106,893

40 See financial notes

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Mizuno Corp.		50,000		260,154
Onward Holdings Co., Ltd.		63,000		423,699
PanaHome Corp.		37,000		269,719
Pioneer Corp. *		156,600		300,206
Rinnai Corp.		6,000		455,238
Sangetsu Co., Ltd.		25,100		386,168
Sankyo Co., Ltd.		14,500		549,210
Seiren Co., Ltd.		15,600		136,016
Tamron Co., Ltd.		6,700		158,291
Token Corp.		4,150		210,087
Tomy Co., Ltd.		36,200		220,039
TSI Holdings Co., Ltd.		35,800		243,704
Wacoal Holdings Corp.		32,000		355,633
Yamaha Corp.		40,200		730,521
				7,763,453
Consumer Services 0.9%
Accordia Golf Co., Ltd.		25,800		262,402
Doutor Nichires Holdings Co., Ltd.		12,600		237,990
Dynam Japan Holdings Co., Ltd.		89,800		190,375
H.I.S. Co., Ltd.		10,500		349,992
McDonald’s Holdings Co., Ltd. (a)		20,233		439,273
MOS Food Services, Inc.		6,900		141,927
Plenus Co., Ltd.		7,500		146,473
Resorttrust, Inc.		7,400		193,318
Round One Corp.		34,000		180,153
Royal Holdings Co., Ltd.		10,000		184,444
Saint Marc Holdings Co., Ltd.		4,200		141,267
Saizeriya Co., Ltd.		14,700		299,446
Tokyo Dome Corp.		33,000		140,696
Yoshinoya Holdings Co., Ltd.		21,900		249,936
Zensho Holdings Co., Ltd. *(a)		27,000		252,713
				3,410,405
Diversified Financials 0.7%
Acom Co., Ltd. *		56,700		188,264
AEON Financial Service Co., Ltd.		12,300		313,558
Aiful Corp. *		32,500		112,061
Century Tokyo Leasing Corp.		6,700		211,551
Daiwa Securities Group, Inc.		72,000		597,299
Fuyo General Lease Co., Ltd.		3,000		122,713
Hitachi Capital Corp.		7,400		167,648
Jaccs Co., Ltd.		35,000		183,745
Mitsubishi UFJ Lease & Finance Co., Ltd.		51,900		278,406
Orient Corp. *		150,500		242,611
SBI Holdings, Inc.		19,900		263,985
				2,681,841
Energy 0.3%
Japan Petroleum Exploration Co., Ltd.		10,700		411,900
San-Ai Oil Co., Ltd.		91,000		604,426
Shinko Plantech Co., Ltd.		19,500		147,551
				1,163,877
Food & Staples Retailing 1.7%
Ain Pharmaciez, Inc.		6,300		222,268
Arcs Co., Ltd.		20,000		418,450
Cawachi Ltd.		16,700		268,100
Cocokara fine, Inc.		12,400		378,278
Cosmos Pharmaceutical Corp.		1,200		161,560
FamilyMart Co., Ltd.		13,100		564,125
Heiwado Co., Ltd.		16,900		405,843
Kato Sangyo Co., Ltd.		20,600		436,026
Matsumotokiyoshi Holdings Co., Ltd.		17,800		648,116
Ministop Co., Ltd.		8,600		127,514
Mitsubishi Shokuhin Co., Ltd.		11,200		236,625
San-A Co., Ltd.		6,200		259,265
Sugi Holdings Co., Ltd.		8,500		414,150
Sundrug Co., Ltd.		8,500		426,553
Tsuruha Holdings, Inc.		8,500		616,494
Valor Co., Ltd.		25,400		541,391
Welcia Holdings Co., Ltd.		6,100		266,736
Yaoko Co., Ltd.		6,300		223,059
Yokohama Reito Co., Ltd.		29,700		210,284
				6,824,837
Food, Beverage & Tobacco 2.3%
Calbee, Inc.		8,100		329,788
Coca-Cola East Japan Co., Ltd.		13,900		259,750
Dydo Drinco, Inc.		5,000		206,852
Ezaki Glico Co., Ltd.		13,100		545,560
Fuji Oil Co., Ltd.		25,000		363,500
Hokuto Corp.		7,700		138,288
House Foods Group, Inc.		19,700		402,297
Ito En Ltd.		20,500		425,960
Itoham Foods, Inc.		80,000		432,158
J-Oil Mills, Inc.		58,000		196,103
Kagome Co., Ltd. (a)		21,400		335,610
Kikkoman Corp.		27,000		770,009
Megmilk Snow Brand Co., Ltd.		37,900		454,467
Mitsui Sugar Co., Ltd.		32,000		115,317
Morinaga & Co., Ltd.		83,000		278,261
Morinaga Milk Industry Co., Ltd.		160,000		592,891
Nichirei Corp.		120,000		633,414
Nippon Flour Mills Co., Ltd.		72,000		355,265
Nippon Suisan Kaisha Ltd.		101,300		307,535
Prima Meat Packers Ltd.		69,000		196,463
Sapporo Holdings Ltd.		108,000		423,926
Takara Holdings, Inc.		43,000		320,392
The Nisshin Oillio Group Ltd.		85,000		312,593
Warabeya Nichiyo Co., Ltd.		10,900		244,081
Yakult Honsha Co., Ltd.		8,800		553,429
				9,193,909
Health Care Equipment & Services 0.8%
Hogy Medical Co., Ltd.		2,300		110,735
Miraca Holdings, Inc.		11,300		568,497
Nichii Gakkan Co.		24,600		228,412
Nihon Kohden Corp.		10,800		283,786
Nikkiso Co., Ltd.		11,700		109,447
Nipro Corp.		33,500		321,478
Paramount Bed Holdings Co., Ltd.		4,300		116,509
Ship Healthcare Holdings, Inc.		7,400		180,857
Sysmex Corp.		10,300		569,917
Toho Holdings Co., Ltd.		33,100		576,405
				3,066,043
Household & Personal Products 0.5%
Earth Chemical Co., Ltd.		5,000		183,845
Fancl Corp.		15,700		204,133
Kobayashi Pharmaceutical Co., Ltd.		5,000		350,344

See financial notes 41

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Kose Corp.		5,600		365,192
Lion Corp.		63,000		386,133
Mandom Corp.		5,300		204,283
Pigeon Corp.		9,000		238,342
Pola Orbis Holdings, Inc.		5,100		264,620
				2,196,892
Insurance 0.1%
Sony Financial Holdings, Inc.		22,499		403,914
Materials 4.2%
ADEKA Corp.		29,600		417,501
Aichi Steel Corp.		60,000		288,441
Asahi Holdings, Inc.		15,000		282,261
Chugoku Marine Paints Ltd.		20,000		173,292
Daido Steel Co., Ltd.		97,000		463,813
Daio Paper Corp.		32,000		339,494
Dowa Holdings Co., Ltd.		62,000		556,392
FP Corp.		6,200		222,438
Fuji Seal International, Inc.		6,300		189,007
Fujimori Kogyo Co., Ltd.		3,800		119,537
Hitachi Metals Ltd.		30,990		484,660
Hokuetsu Kishu Paper Co., Ltd.		63,800		347,046
Ishihara Sangyo Kaisha Ltd. *		156,000		154,809
Kansai Paint Co., Ltd.		24,000		427,811
Konishi Co., Ltd.		7,100		124,479
Kureha Corp.		51,000		233,408
Kyoei Steel Ltd.		10,000		163,801
Lintec Corp.		16,900		414,551
Maruichi Steel Tube Ltd.		13,600		343,503
Mitsubishi Gas Chemical Co., Inc.		109,000		609,068
Mitsubishi Steel Manufacturing Co., Ltd.		72,000		163,123
Nihon Parkerizing Co., Ltd.		16,400		186,449
Nippon Denko Co., Ltd.		74,200		181,817
Nippon Kayaku Co., Ltd.		34,000		411,008
Nippon Light Metal Holdings Co., Ltd.		289,100		447,859
Nippon Paint Holdings Co., Ltd.		13,000		435,470
Nippon Shokubai Co., Ltd.		38,000		524,653
Nippon Soda Co., Ltd.		39,000		243,653
Nissan Chemical Industries Ltd.		25,000		495,447
Nisshin Steel Co., Ltd.		29,500		393,172
Nittetsu Mining Co., Ltd.		38,000		150,874
NOF Corp.		44,000		338,511
Pacific Metals Co., Ltd. *		58,000		176,401
Rengo Co., Ltd.		118,000		515,910
Sakata INX Corp.		13,400		127,210
Sanyo Chemical Industries Ltd.		24,000		187,020
Sanyo Special Steel Co., Ltd.		54,000		261,321
Sumitomo Bakelite Co., Ltd.		83,000		378,393
Sumitomo Osaka Cement Co., Ltd.		129,000		420,147
The Nippon Synthetic Chemical Industry Co., Ltd.		17,000		118,975
Toagosei Co., Ltd.		96,000		426,033
Toho Zinc Co., Ltd.		47,000		180,917
Tokai Carbon Co., Ltd.		102,000		298,963
Tokuyama Corp.		211,000		469,434
Tokyo Ohka Kogyo Co., Ltd.		8,000		249,001
Tokyo Steel Manufacturing Co., Ltd.		57,700		398,333
Topy Industries Ltd.		122,000		292,407
Toyo Ink SC Holdings Co., Ltd.		69,000		328,552
Toyo Kohan Co., Ltd.		23,000		109,259
Toyobo Co., Ltd.		345,000		525,944
UACJ Corp.		64,300		185,904
Yamato Kogyo Co., Ltd.		10,900		256,454
Yodogawa Steel Works Ltd.		58,000		234,856
Zeon Corp.		42,000		376,991
				16,845,773
Media 0.7%
Asatsu-DK, Inc.		16,400		450,930
Avex Group Holdings, Inc.		11,800		182,118
CyberAgent, Inc.		4,500		216,543
Daiichikosho Co., Ltd.		11,400		367,670
SKY Perfect JSAT Holdings, Inc.		51,600		323,204
Toei Co., Ltd.		21,000		154,778
Toho Co., Ltd.		17,600		437,462
Tokyo Broadcasting System Holdings, Inc.		13,100		171,704
TV Asahi Holdings Corp.		9,500		175,296
Zenrin Co., Ltd.		12,000		147,252
				2,626,957
Pharmaceuticals, Biotechnology & Life Sciences 0.9%
Hisamitsu Pharmaceutical Co., Inc.		11,700		504,199
Kaken Pharmaceutical Co., Ltd.		9,000		321,623
Kissei Pharmaceutical Co., Ltd.		6,000		178,086
KYORIN Holdings, Inc.		11,000		253,020
Mochida Pharmaceutical Co., Ltd.		3,800		259,745
Nichi-iko Pharmaceutical Co., Ltd.		7,200		151,565
Nippon Shinyaku Co., Ltd.		5,000		167,168
Rohto Pharmaceutical Co., Ltd.		19,300		275,546
Santen Pharmaceutical Co., Ltd.		47,500		628,762
Sawai Pharmaceutical Co., Ltd.		3,800		216,317
Sumitomo Dainippon Pharma Co., Ltd.		32,300		364,956
Tsumura & Co.		14,500		339,782
				3,660,769
Real Estate 1.4%
Advance Residence Investment Corp.		101		238,287
Aeon Mall Co., Ltd.		15,230		284,099
Frontier Real Estate Investment Corp.		28		136,918
Japan Excellent, Inc.		134		177,616
Japan Prime Realty Investment Corp.		66		236,802
Japan Real Estate Investment Corp.		92		434,428
Japan Retail Fund Investment Corp.		208		442,804
Kenedix Office Investment Corp.		34		183,969
Leopalace21 Corp. *		55,800		321,824
MID REIT, Inc.		53		156,695
Mori Trust Sogo REIT, Inc.		79		155,630
Nippon Accommodations Fund, Inc.		37		143,557
Nippon Building Fund, Inc.		116		577,202
Nomura Real Estate Holdings, Inc.		28,500		579,320

42 See financial notes

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Nomura Real Estate Office Fund, Inc.		60		275,795
NTT Urban Development Corp.		15,000		156,167
Orix JREIT, Inc.		172		254,243
Relo Holdings, Inc.		1,900		155,992
Tokyo Tatemono Co., Ltd.		40,000		290,026
Top REIT, Inc.		26		112,156
United Urban Investment Corp.		165		261,900
				5,575,430
Retailing 2.4%
ABC-Mart, Inc.		3,100		176,387
Adastria Holdings Co., Ltd.		8,990		272,728
Alpen Co., Ltd.		10,200		166,664
AOKI Holdings, Inc.		13,100		181,581
Aoyama Trading Co., Ltd.		19,100		660,634
Arcland Sakamoto Co., Ltd.		6,700		161,611
ASKUL Corp.		6,800		159,217
Autobacs Seven Co., Ltd.		38,500		599,657
Bic Camera, Inc. (a)		23,500		234,354
Canon Marketing Japan, Inc.		24,800		465,860
Chiyoda Co., Ltd.		11,000		235,124
DCM Holdings Co., Ltd.		80,200		668,835
Don Quijote Holdings Co., Ltd.		8,400		640,873
Doshisha Co., Ltd.		9,600		144,014
Geo Holdings Corp.		40,000		434,465
Gulliver International Co., Ltd.		18,000		140,800
H2O Retailing Corp.		31,000		557,775
Happinet Corp.		11,300		130,284
Hikari Tsushin, Inc.		3,500		233,599
Izumi Co., Ltd.		8,600		340,613
Kohnan Shoji Co., Ltd.		29,700		331,269
Komeri Co., Ltd.		14,100		317,315
Rakuten, Inc.		31,960		558,356
Ryohin Keikaku Co., Ltd.		3,800		606,025
Sanrio Co., Ltd. (a)		6,200		166,076
United Arrows Ltd.		4,600		141,554
USS Co., Ltd.		25,700		452,520
Xebio Co., Ltd.		19,100		337,126
				9,515,316
Semiconductors & Semiconductor Equipment 0.5%
Advantest Corp.		18,100		213,388
Disco Corp.		3,000		273,201
Sanken Electric Co., Ltd.		18,000		137,649
SCREEN Holdings Co., Ltd.		39,000		264,756
Shinko Electric Industries Co., Ltd.		29,300		234,140
Sumco Corp.		25,200		380,222
Tokyo Seimitsu Co., Ltd.		7,000		150,880
Ulvac, Inc. *		10,800		183,890
				1,838,126
Software & Services 1.9%
Capcom Co., Ltd.		14,300		266,368
Dena Co., Ltd.		41,886		836,716
DTS Corp.		7,200		146,540
Fuji Soft, Inc.		7,900		160,615
Gree, Inc. (a)		43,500		280,857
Internet Initiative Japan, Inc.		5,200		87,923
IT Holdings Corp.		35,400		697,093
Itochu Techno-Solutions Corp.		17,100		389,435
NEC Networks & System Integration Corp.		12,200		261,432
NET One Systems Co., Ltd.		54,000		387,823
Nexon Co., Ltd.		17,561		223,992
Nihon Unisys Ltd.		24,100		228,708
Nomura Research Institute Ltd.		18,600		734,003
NS Solutions Corp.		5,000		167,758
NSD Co., Ltd.		8,820		127,882
Obic Co., Ltd.		6,500		271,899
Otsuka Corp.		13,100		603,372
SCSK Corp.		4,976		145,303
Square Enix Holdings Co., Ltd.		14,700		308,685
Transcosmos, Inc.		8,400		203,386
Trend Micro, Inc.		13,800		466,875
Yahoo Japan Corp.		123,700		505,344
				7,502,009
Technology Hardware & Equipment 2.6%
Alps Electric Co., Ltd.		33,300		827,186
Amano Corp.		20,000		257,263
Anritsu Corp.		24,900		178,533
Azbil Corp.		19,500		513,670
Canon Electronics, Inc.		8,700		174,522
Citizen Holdings Co., Ltd.		69,600		550,793
Daiwabo Holdings Co., Ltd.		139,000		231,725
Eizo Corp.		8,250		183,003
Hamamatsu Photonics K.K.		15,000		437,526
Hirose Electric Co., Ltd.		4,095		576,590
Hitachi High-Technologies Corp.		22,700		657,838
Hitachi Kokusai Electric, Inc.		8,000		110,806
Horiba Ltd.		8,600		322,941
Hosiden Corp.		87,700		513,065
Japan Aviation Electronics Industry Ltd.		10,000		240,218
Macnica Fuji Electronics Holdings, Inc. *		12,750		157,079
Melco Holdings, Inc.		7,800		160,918
Mitsumi Electric Co., Ltd.		64,100		480,092
Nichicon Corp.		19,400		178,973
Nippon Chemi-Con Corp. *		49,000		147,750
Oki Electric Industry Co., Ltd.		100,000		204,862
Riso Kagaku Corp.		7,800		129,107
Ryosan Co., Ltd.		19,000		452,484
Ryoyo Electro Corp.		16,600		192,594
Shimadzu Corp.		48,000		561,448
Siix Corp.		6,400		170,024
Taiyo Yuden Co., Ltd.		32,800		484,925
The Nippon Signal Co., Ltd.		15,700		150,344
Toshiba TEC Corp.		42,000		232,921
Wacom Co., Ltd. (a)		24,900		129,104
Yaskawa Electric Corp.		29,700		408,063
Yokogawa Electric Corp.		40,000		468,477
				10,484,844
Transportation 1.4%
Fukuyama Transporting Co., Ltd. (a)		53,000		300,318
Hitachi Transport System Ltd.		22,400		361,252
Japan Airport Terminal Co., Ltd.		4,600		258,957
Keikyu Corp.		55,000		437,206
Keio Corp.		85,000		656,507
Keisei Electric Railway Co., Ltd.		33,000		391,170
Kintetsu World Express, Inc.		7,500		345,470

See financial notes 43

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Konoike Transport Co., Ltd.		15,300		163,598
Mitsubishi Logistics Corp.		20,000		309,375
Mitsui-Soko Holdings Co., Ltd.		36,000		126,142
Nankai Electric Railway Co., Ltd.		81,000		387,218
Nippon Konpo Unyu Soko Co., Ltd.		18,100		318,944
Nishi-Nippon Railroad Co., Ltd.		87,000		381,503
Sankyu, Inc.		115,000		539,342
Senko Co., Ltd.		41,000		258,879
Sotetsu Holdings, Inc.		71,000		336,740
The Sumitomo Warehouse Co., Ltd.		34,000		191,832
				5,764,453
Utilities 0.1%
The Okinawa Electric Power Co., Inc.		9,500		360,929
				153,002,449
Luxembourg 0.5%
Banks 0.0%
Espirito Santo Financial Group S.A. *(b)(c)		69,773		—
Commercial & Professional Supplies 0.1%
Regus plc		89,311		341,107
Consumer Durables & Apparel 0.1%
Samsonite International S.A.		99,600		363,258
Household & Personal Products 0.1%
Oriflame Cosmetics S.A. SDR (a)		20,603		355,776
Materials 0.1%
Ternium S.A. ADR		21,760		461,312
Semiconductors & Semiconductor Equipment 0.0%
Magnachip Semiconductor Corp. *		14,628		80,162
Telecommunication Services 0.1%
Colt Group S.A. *		112,664		257,679
				1,859,294
Netherlands 1.9%
Capital Goods 0.5%
Aalberts Industries N.V.		15,193		471,024
AerCap Holdings N.V. *		8,758		408,823
Arcadis N.V.		9,727		307,899
Heijmans N.V. CVA *		8,207		109,703
Royal Imtech N.V. *(a)		67,126		360,808
Sensata Technologies Holding N.V. *		6,130		338,437
TKH Group N.V.		3,502		129,947
				2,126,641
Commercial & Professional Supplies 0.1%
USG People N.V.		33,438		454,089
Consumer Durables & Apparel 0.1%
TomTom N.V. *		24,501		217,441
Diversified Financials 0.0%
BinckBank N.V.		13,245		132,752
Energy 0.3%
Core Laboratories N.V.		2,086		273,850
Koninklijke Vopak N.V.		7,491		393,186
SBM Offshore N.V. *		47,854		617,980
				1,285,016
Food & Staples Retailing 0.2%
Sligro Food Group N.V.		8,675		335,032
X5 Retail Group N.V. GDR - Reg’d *		26,082		528,048
				863,080
Food, Beverage & Tobacco 0.2%
Corbion N.V.		23,867		545,082
Wessanen		19,267		164,170
				709,252
Materials 0.1%
Koninklijke Ten Cate N.V.		11,834		275,514
Real Estate 0.2%
Eurocommercial Properties N.V. CVA		4,660		212,938
Vastned Retail N.V.		3,629		177,209
Wereldhave N.V.		3,497		224,471
				614,618
Semiconductors & Semiconductor Equipment 0.2%
ASM International N.V.		7,658		371,811
NXP Semiconductors N.V. *		5,978		574,605
				946,416
Software & Services 0.0%
Yandex N.V., Class A *		6,670		128,331
				7,753,150
New Zealand 0.8%
Consumer Services 0.1%
SKYCITY Entertainment Group Ltd.		100,829		322,991
Energy 0.0%
Z Energy Ltd.		47,547		174,640
Health Care Equipment & Services 0.1%
Fisher & Paykel Healthcare Corp., Ltd.		41,490		205,476
Materials 0.1%
Nuplex Industries Ltd.		90,655		232,049
Media 0.1%
SKY Network Television Ltd.		62,436		299,088
Real Estate 0.0%
Kiwi Property Group Ltd.		140,914		139,060
Telecommunication Services 0.1%
Chorus Ltd. *		153,479		357,285
Transportation 0.1%
Air New Zealand Ltd.		125,467		257,839
Auckland International Airport Ltd.		64,212		225,333
Mainfreight Ltd.		11,113		130,470
				613,642
Utilities 0.2%
Contact Energy Ltd.		52,416		226,989
Infratil Ltd.		124,281		295,955

44 See financial notes

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Mighty River Power Ltd.		73,474		168,798
				691,742
				3,035,973
Norway 0.9%
Banks 0.1%
Sparebank 1 Nord Norge		24,309		142,696
SpareBank 1 SMN		22,135		197,726
SpareBank 1 SR Bank A.S.A.		26,344		195,378
				535,800
Capital Goods 0.0%
Vard Holdings Ltd. *		260,700		125,636
Commercial & Professional Supplies 0.0%
Tomra Systems A.S.A.		16,989		165,271
Energy 0.2%
Fred Olsen Energy A.S.A. (a)		24,537		220,491
Kvaerner A.S.A.		109,485		85,841
TGS Nopec Geophysical Co. A.S.A.		16,559		421,410
				727,742
Food, Beverage & Tobacco 0.1%
Austevoll Seafood A.S.A.		28,545		166,023
Leroy Seafood Group A.S.A.		3,991		132,407
				298,430
Insurance 0.2%
Gjensidige Forsikring A.S.A. (a)		26,849		467,082
Storebrand A.S.A. *		64,288		227,303
				694,385
Materials 0.0%
Borregaard A.S.A.		16,688		129,024
Media 0.1%
Schibsted A.S.A.		6,170		383,889
Semiconductors & Semiconductor Equipment 0.1%
REC Silicon A.S.A. *		1,298,163		362,485
Software & Services 0.1%
Atea A.S.A.		29,698		331,306
				3,753,968
Portugal 0.5%
Banks 0.0%
Banco BPI S.A. - Reg’d *(a)		65,624		107,268
Banco Espirito Santo S.A. - Reg’d *(b)(c)		320,558		—
				107,268
Capital Goods 0.0%
Mota-Engil, SGPS, S.A.		27,380		94,447
Food & Staples Retailing 0.3%
Jeronimo Martins, SGPS, S.A.		46,707		681,334
Sonae SGPS S.A.		292,223		406,316
				1,087,650
Materials 0.1%
Semapa-Sociedade de Investimento e Gestao		17,274		248,076
Media 0.1%
NOS SGPS S.A.		22,654		165,006
Utilities 0.0%
Redes Energeticas Nacionais SGPS, S.A.		43,580		136,428
				1,838,875
Republic of Korea 0.0%
Automobiles & Components 0.0%
Zyle Motor Sales Corp. *(b)(c)		2,480		3,655
Capital Goods 0.0%
Daewoo Industrial Development Co., Ltd. *(b)(c)		1,773		1,787
				5,442
Singapore 1.7%
Capital Goods 0.3%
Cosco Corp., (Singapore) Ltd. (a)		387,031		176,606
Sembcorp Marine Ltd. (a)		205,596		459,853
Singapore Technologies Engineering Ltd.		215,800		589,128
United Engineers Ltd.		70,000		140,190
				1,365,777
Consumer Services 0.1%
Genting Singapore plc		389,600		301,009
Diversified Financials 0.1%
Singapore Exchange Ltd.		58,000		372,814
Energy 0.0%
Sakari Resources Ltd. *(b)(c)		18,000		—
Food & Staples Retailing 0.0%
Olam International Ltd. (a)		78,104		119,123
Food, Beverage & Tobacco 0.1%
Golden Agri-Resources Ltd.		1,649,600		521,854
Real Estate 0.7%
Ascendas Real Estate Investment Trust		160,900		299,849
CapitaCommercial Trust		151,602		193,837
CapitaLand Ltd.		229,200		637,826
CapitaMall Trust		195,100		322,137
City Developments Ltd.		69,000		555,170
Global Logistic Properties Ltd.		94,000		194,960
Suntec Real Estate Investment Trust		149,100		199,045
UOL Group Ltd.		51,000		306,662
				2,709,486
Semiconductors & Semiconductor Equipment 0.0%
Kulicke & Soffa Industries, Inc. *		10,015		151,327
Telecommunication Services 0.1%
M1 Ltd.		48,000		128,960
StarHub Ltd.		69,000		220,333
				349,293
Transportation 0.3%
Neptune Orient Lines Ltd. *(a)		395,000		337,977
SATS Ltd.		134,749		324,856
Singapore Post Ltd.		152,000		219,157

See financial notes 45

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
SMRT Corp., Ltd.		138,200		175,872
				1,057,862
				6,948,545
Spain 2.0%
Banks 0.3%
Bankia S.A. *		308,866		431,334
Bankinter S.A.		70,450		532,798
Caja de Ahorros del Mediterraneo *(b)(c)		5,382		—
Liberbank S.A. *		160,960		139,030
				1,103,162
Capital Goods 0.5%
Abengoa S.A.		8,266		28,559
Abengoa S.A., B Shares		97,258		314,352
Construcciones y Auxiliar de Ferrocarriles S.A.		487		169,839
Duro Felguera S.A.		27,693		111,593
Gamesa Corp. Tecnologica S.A. *		46,159		617,256
Obrascon Huarte Lain S.A. (a)		11,351		263,300
Sacyr S.A. *		56,854		255,270
Zardoya Otis S.A.		27,116		349,586
				2,109,755
Commercial & Professional Supplies 0.1%
Prosegur Cia de Seguridad S.A. - Reg’d		45,841		264,253
Consumer Services 0.1%
Melia Hotels International S.A.		10,906		136,479
NH Hotel Group S.A. *		22,561		131,355
				267,834
Diversified Financials 0.1%
Bolsas y Mercados Espanoles, SHMSF, S.A.		8,357		373,866
Energy 0.1%
Tecnicas Reunidas S.A.		5,075		236,056
Food, Beverage & Tobacco 0.2%
Ebro Foods S.A.		22,188		430,406
Pescanova S.A. *(b)(c)		1,125		—
Viscofan S.A.		6,088		386,950
				817,356
Insurance 0.0%
Grupo Catalana Occidente S.A.		5,698		183,264
Materials 0.1%
Acerinox S.A.		28,775		419,889
Vidrala S.A.		2,984		139,400
				559,289
Media 0.3%
Atresmedia Corp de Medios de Comunicaion S.A.		9,952		160,747
Mediaset Espana Comunicacion S.A. *		31,598		428,300
Promotora de Informaciones S.A., Class A *		1,235,316		405,780
				994,827
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Almirall S.A. *		9,550		180,062
Grifols S.A.		5,730		243,133
				423,195
Software & Services 0.1%
Indra Sistemas S.A.		37,078		436,473
				7,769,330
Sweden 2.1%
Capital Goods 0.4%
B&B Tools AB, B Shares		7,823		126,341
Haldex AB		8,760		130,904
Indutrade AB		3,169		154,812
Lindab International AB		15,568		135,968
Nibe Industrier AB, B Shares		6,558		174,676
Peab AB		57,781		487,318
Saab AB, Class B		12,248		316,154
				1,526,173
Commercial & Professional Supplies 0.2%
AF AB, B Shares		8,306		112,955
Intrum Justitia AB		7,478		235,499
Loomis AB, Class B		11,180		358,312
				706,766
Consumer Durables & Apparel 0.1%
JM AB		12,136		361,071
Nobia AB		13,986		151,300
				512,371
Consumer Services 0.0%
Betsson AB *		4,299		179,980
Diversified Financials 0.2%
LE Lundbergfortagen AB, B Shares		5,016		235,598
Ratos AB, B Shares (a)		66,458		453,149
				688,747
Energy 0.1%
Lundin Petroleum AB *		15,870		256,884
Food & Staples Retailing 0.1%
Axfood AB		18,760		296,363
Food, Beverage & Tobacco 0.1%
AAK AB		3,040		192,328
Health Care Equipment & Services 0.1%
Elekta AB, B Shares (a)		33,277		311,472
Materials 0.2%
BillerudKorsnas AB		16,454		284,820
Hexpol AB		1,840		197,177
Holmen AB, B Shares		14,213		470,279
				952,276
Media 0.1%
Eniro AB *(a)		214,341		42,954
Modern Times Group MTG AB, B Shares		14,079		468,201
				511,155
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Meda AB, A Shares		31,298		525,349
Real Estate 0.2%
Castellum AB		16,310		254,310
Fabege AB		13,008		198,291

46 See financial notes

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Kungsleden AB		21,581		157,086
				609,687
Retailing 0.1%
Bilia AB, A Shares		7,600		269,844
Clas Ohlson AB, B Shares		8,097		138,944
				408,788
Technology Hardware & Equipment 0.1%
Hexagon AB, B Shares		14,411		533,786
Transportation 0.0%
SAS AB *(a)		96,227		185,951
				8,398,076
Switzerland 2.8%
Banks 0.1%
Banque Cantonale Vaudoise - Reg’d		316		186,105
Valiant Holding AG - Reg’d		2,249		202,855
				388,960
Capital Goods 0.6%
AFG Arbonia-Forster Holding AG - Reg’d *(a)		6,325		135,252
Belimo Holding AG - Reg’d		57		138,384
Bucher Industries AG - Reg’d		942		236,770
Daetwyler Holding AG		899		127,627
Georg Fischer AG - Reg’d		869		614,648
Implenia AG - Reg’d		3,063		209,727
Meyer Burger Technology AG *(a)		18,149		124,127
OC Oerlikon Corp. AG - Reg’d *		22,498		294,308
Rieter Holding AG - Reg’d *		688		113,329
Sulzer AG - Reg’d		4,640		517,769
				2,511,941
Commercial & Professional Supplies 0.2%
DKSH Holding Ltd. *		4,366		343,589
Gategroup Holding AG *		7,461		261,509
Kaba Holding AG - Reg’d, Series B *		411		269,931
				875,029
Consumer Durables & Apparel 0.1%
Forbo Holding AG - Reg’d *		169		204,678
Consumer Services 0.1%
Kuoni Reisen Holding AG - Reg’d, Series B *		1,239		417,006
Diversified Financials 0.3%
GAM Holding AG *		9,786		220,782
Julius Baer Group Ltd. *		12,094		633,009
Partners Group Holding AG		880		275,823
				1,129,614
Food, Beverage & Tobacco 0.1%
Barry Callebaut AG - Reg’d *		239		289,936
Emmi AG - Reg’d *		589		195,194
				485,130
Health Care Equipment & Services 0.2%
Sonova Holding AG - Reg’d		3,005		415,155
Straumann Holding AG - Reg’d		638		180,513
				595,668
Insurance 0.1%
Helvetia Holding AG - Reg’d		826		469,286
Materials 0.2%
EMS-Chemie Holding AG - Reg’d		676		283,711
Ferrexpo plc		102,542		122,773
Schmolz & Bickenbach AG - Reg’d *		205,542		198,046
				604,530
Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Actelion Ltd. - Reg’d *		5,076		667,904
Galenica AG - Reg’d		549		512,598
				1,180,502
Real Estate 0.1%
Allreal Holding AG - Reg’d *		1,250		179,339
Swiss Prime Site AG - Reg’d *		2,518		220,771
				400,110
Retailing 0.1%
Dufry AG - Reg’d *		1,816		267,019
Valora Holding AG - Reg’d *		1,298		291,302
				558,321
Software & Services 0.0%
Temenos Group AG - Reg’d *		3,485		126,645
Technology Hardware & Equipment 0.1%
Kudelski S.A. - BR		8,127		121,863
Logitech International S.A. - Reg’d	��	28,130		422,297
				544,160
Transportation 0.2%
Flughafen Zuerich AG - Reg’d		383		298,275
Panalpina Welttransport Holding AG - Reg’d		2,934		409,149
				707,424
Utilities 0.0%
Alpiq Holding AG - Reg’d *		1,728		150,954
				11,349,958
United Kingdom 12.9%
Banks 0.0%
The Paragon Group of Cos. plc		19,357		126,598
Capital Goods 1.6%
Ashtead Group plc		32,960		565,184
Bodycote plc		30,711		323,437
Brammer plc		19,044		111,011
Chemring Group plc		78,024		256,373
Fenner plc		50,624		162,688
Galliford Try plc		15,364		353,528
HellermannTyton Group plc		26,214		138,402
Interserve plc		35,328		312,890
Keller Group plc		22,299		341,084
Kier Group plc		10,548		261,657
Lavendon Group plc		50,558		135,035
Melrose Industries plc		111,645		453,054
Morgan Advanced Materials plc		62,447		322,172
Morgan Sindall Group plc		22,047		264,984
QinetiQ Group plc		160,287		496,086

See financial notes 47

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Rotork plc		7,273		262,449
Senior plc		53,175		255,337
Speedy Hire plc		160,878		182,741
Spirax-Sarco Engineering plc		8,795		455,256
Ultra Electronics Holdings plc		9,904		263,377
Vesuvius plc		55,869		388,542
				6,305,287
Commercial & Professional Supplies 1.1%
Berendsen plc		33,107		526,320
Cape plc		46,681		189,887
De La Rue plc		45,171		379,605
HomeServe plc		49,063		286,705
Intertek Group plc		14,429		576,663
Mears Group plc		20,449		134,346
Michael Page International plc		57,423		467,818
Mitie Group plc		91,765		402,540
PayPoint plc		7,622		99,682
Rentokil Initial plc		236,431		486,273
RPS Group plc		52,126		170,428
Shanks Group plc		140,273		230,391
WS Atkins plc		13,658		280,237
				4,230,895
Consumer Durables & Apparel 0.6%
Bellway plc		15,566		473,241
Berkeley Group Holdings plc		10,686		411,439
Bovis Homes Group plc		11,235		159,968
Coats Group plc *		707,603		286,428
Crest Nicholson Holdings plc		23,107		158,647
Persimmon plc		24,697		641,241
The Vitec Group plc		12,253		122,606
				2,253,570
Consumer Services 0.9%
Betfair Group plc		6,821		243,060
Bwin.Party Digital Entertainment plc		75,656		96,804
Dignity plc		4,572		142,466
Enterprise Inns plc *		287,250		513,508
Greene King plc		41,485		527,435
J.D. Wetherspoon plc		18,536		215,964
Ladbrokes plc		310,873		486,530
Marston’s plc		159,329		387,463
Merlin Entertainments plc		19,810		132,361
Mitchells & Butlers plc *		50,736		324,026
Spirit Pub Co. plc		174,237		299,816
The Restaurant Group plc		22,866		237,634
				3,607,067
Diversified Financials 1.5%
Aberdeen Asset Management plc		54,517		395,874
Ashmore Group plc		51,517		243,536
Brewin Dolphin Holdings plc		25,688		133,406
Close Brothers Group plc		14,850		347,125
Hargreaves Lansdown plc		7,390		138,820
Henderson Group plc		101,407		432,704
IG Group Holdings plc		46,465		523,899
Intermediate Capital Group plc		55,038		444,522
International Personal Finance plc		39,693		301,871
Investec plc		62,207		594,008
Jupiter Fund Management plc		36,615		241,082
London Stock Exchange Group plc		15,452		601,475
Provident Financial plc		15,439		712,146
Schroders plc		10,590		525,246
Tullett Prebon plc		59,861		327,794
				5,963,508
Energy 0.2%
Afren plc *		873,335		44,239
EnQuest plc *		316,567		254,354
Hargreaves Services plc		14,285		93,984
Hunting plc		25,672		230,725
Premier Oil plc *		108,430		290,074
				913,376
Food & Staples Retailing 0.1%
Greggs plc		31,192		566,872
Food, Beverage & Tobacco 0.4%
Britvic plc		23,447		260,392
Cranswick plc		13,073		285,755
Dairy Crest Group plc		51,569		360,530
Devro plc		26,856		120,260
Greencore Group plc		39,362		213,601
Premier Foods plc *		601,457		424,477
				1,665,015
Health Care Equipment & Services 0.1%
Synergy Health plc		6,308		214,473
Household & Personal Products 0.1%
PZ Cussons plc		51,187		280,453
Insurance 0.8%
Admiral Group plc		28,112		670,349
Beazley plc		67,678		291,055
Hiscox Ltd.		42,851		539,896
Jardine Lloyd Thompson Group plc		14,625		238,174
Lancashire Holdings Ltd.		60,821		594,572
Phoenix Group Holdings		45,946		592,950
St. James’s Place plc		15,262		208,184
				3,135,180
Materials 1.0%
Acacia Mining plc		45,481		201,709
Alent plc		31,543		175,172
Croda International plc		12,232		530,828
DS Smith plc		123,914		662,562
Elementis Plc		52,563		244,605
Essentra plc		16,637		244,219
Evraz plc		291,495		846,534
Polyus Gold International Ltd.		38,951		112,392
Randgold Resources Ltd.		5,704		434,078
RPC Group plc		27,038		248,491
Synthomer plc		39,548		193,835
Victrex plc		6,868		207,871
				4,102,296
Media 0.3%
Daily Mail & General Trust plc		32,038		440,412
Trinity Mirror plc *		131,317		370,892
UBM plc		47,389		409,089
				1,220,393
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Genus plc		6,499		134,376

48 See financial notes

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Hikma Pharmaceuticals plc		5,629		176,031
				310,407
Real Estate 0.7%
Derwent London plc		3,800		200,015
Hammerson plc		61,109		626,095
Intu Properties plc		84,200		441,715
Mapeley Ltd. *(b)(c)		2,199		—
Savills plc		19,019		240,867
Segro plc		84,511		555,191
Shaftesbury plc		9,920		127,572
The British Land Co., plc		52,475		668,338
				2,859,793
Retailing 1.2%
Debenhams plc		522,380		717,596
Dixons Carphone plc		232,390		1,508,171
Dunelm Group plc		9,051		125,178
Halfords Group plc		54,988		382,956
Howden Joinery Group plc		33,578		239,036
John Menzies plc		24,819		148,589
Lookers plc		90,668		217,591
N Brown Group plc		30,331		159,232
Pendragon plc		731,025		412,380
Sports Direct International plc *		17,160		162,204
WH Smith plc		25,462		558,638
				4,631,571
Semiconductors & Semiconductor Equipment 0.1%
ARM Holdings plc		23,965		407,198
CSR plc		17,621		238,025
				645,223
Software & Services 0.3%
AVEVA Group plc		5,482		142,296
Fidessa Group plc		4,714		161,652
Micro Focus International plc		14,740		284,408
Moneysupermarket.com Group plc		43,524		186,502
Playtech plc		13,052		163,969
Telecity Group plc		9,431		127,926
Xchanging plc		66,891		125,105
				1,191,858
Technology Hardware & Equipment 0.7%
Domino Printing Sciences plc		16,274		228,572
Electrocomponents plc		123,482		456,226
Halma plc		31,831		346,667
Laird plc		46,027		253,119
Pace plc		51,303		325,270
Premier Farnell plc		85,786		250,315
Spectris plc		13,154		432,314
Spirent Communications plc		182,096		243,772
TT Electronics plc		69,485		142,657
				2,678,912
Telecommunication Services 0.2%
Jazztel plc *		9,425		136,081
KCOM Group plc		113,634		159,754
TalkTalk Telecom Group plc		90,035		503,323
				799,158
Transportation 0.9%
BBA Aviation plc		89,470		470,773
easyJet plc		21,933		606,462
Go-Ahead Group plc		7,872		297,239
National Express Group plc		146,728		646,188
Northgate plc		50,828		503,235
Royal Mail plc		66,959		478,391
Stagecoach Group plc		52,849		293,725
Stobart Group Ltd.		85,330		142,115
Stolt-Nielsen Ltd.		10,490		195,738
				3,633,866
				51,335,771
Total Common Stock
(Cost $347,261,417)				390,257,429
Preferred Stock 0.5% of net assets
Germany 0.3%
Automobiles & Components 0.1%
Porsche Automobil Holding SE		5,147		488,364
Capital Goods 0.0%
Jungheinrich AG		3,322		234,804
Health Care Equipment & Services 0.1%
Draegerwerk AG & Co. KGaA		2,557		296,731
Materials 0.1%
Fuchs Petrolub SE		8,620		363,103
				1,383,002
Italy 0.1%
Capital Goods 0.0%
Danieli S.p.A. - Officine Meccaniche Danieli & C. - RSP		6,431		119,725
Insurance 0.1%
Unipol Gruppo Finanziario S.p.A.		31,848		167,394
				287,119
Spain 0.0%
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Grifols S.A., Class B		4,716		153,078
Sweden 0.1%
Transportation 0.1%
SAS AB		4,466		267,424
Total Preferred Stock
(Cost $1,805,239)				2,090,623
Rights 0.0% of net assets
Australia 0.0%
Media 0.0%
Seven West Media Ltd. *(b)		164,043		1,947

See financial notes 49

 Schwab Fundamental International Small Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Canada 0.0%
Software & Services 0.0%
Constellation Software, Inc. *		626		187
Total Rights
(Cost $181)				2,134
Other Investment Companies 3.3% of net assets
United States 3.3%
Equity Fund 0.8%
iShares MSCI EAFE Small Cap ETF (a)		65,000		3,353,350
Securities Lending Collateral 2.5%
Wells Fargo Advantage Government Money Market Fund, Institutional Class 0.01% (d)		9,855,588		9,855,588
Total Other Investment Companies
(Cost $12,986,712)				13,208,938
Security	Face Amount		Value
Rate, Maturity Date	Local Currency		($)
Short-Term Investments 0.4% of net assets
Time Deposits 0.4%
Bank of Tokyo - Mitsubishi UFJ
Japanese Yen
0.01%, 05/01/15		6,282,624		52,618
Brown Brothers Harriman
Swiss Franc
(1.00)%, 05/04/15		86,326		92,530
Singapore Dollar
0.01%, 05/04/15		6,739		5,093
Australian Dollar
1.21%, 05/01/15		2,253		1,783
DNB
Swedish Krona
(0.36)%, 05/04/15		235,859		28,303
Euro
(0.19)%, 05/04/15		294,990		331,229
JPMorgan Chase Bank
US Dollar
0.03%, 05/01/15		791,565		791,565
Wells Fargo
Canadian Dollar
0.15%, 05/01/15		64,395		53,374
Total Short-Term Investments
(Cost $1,356,495)				1,356,495
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $367,861,318 and the unrealized appreciation and depreciation were $53,928,396 and ($14,874,096), respectively, with a net unrealized appreciation of $39,054,300.

At 04/30/15, the values of certain foreign securities held by the fund aggregating $332,679,865 were adjusted from their closing market values in accordance with international fair valuation procedures approved by the fund’s Board of Trustees. (See financial 2(a) for additional information)

*	Non-income producing security.
(a)	All or a portion of this security is on loan. Securities on loan were valued at $9,265,659.
(b)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(c)	Illiquid security. At the period end, the value of these amounted to $5,442 or 0.0% of net assets.
(d)	The rate shown is the 7-day yield.

ADR —	American Depositary Receipt
CDI —	CHESS Depositary Interest
CVA —	Dutch Certificate
ETF —	Exchange Traded Fund
GDR —	Global Depositary Receipt
Reg’d —	Registered
REIT —	Real Estate Investment Trust
RSP —	Risparmio (Convertible Savings Shares)
SDR —	Swedish Depositary Receipt

50 See financial notes

 Schwab Fundamental Emerging Markets Large Company Index Fund

Portfolio Holdings as of April 30, 2015 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website at www.csimfunds.com/schwabfunds_prospectus.

				Cost		Value
Holdings by Category				($)		($)
	90	.4%	Common Stock		343,323,329		365,074,762
	9	.3%	Preferred Stock		51,464,277		37,654,895
	0	.1%	Other Investment Company		511,000		511,000
	0	.0%	Corporate Bond		59,699		57,601
	0	.4%	Short-Term Investments		1,340,405		1,340,405
	100	.2%	Total Investments		396,698,710		404,638,663
	(0	.2%)	Other Assets and Liabilities, Net				(919,070	)
	100	.0%	Net Assets				403,719,593

	Number		Value
Security	of Shares		($)
Common Stock 90.4% of net assets
Brazil 6.3%
Banks 1.1%
Banco Bradesco S.A.		154,019		1,535,613
Banco do Brasil S.A.		291,353		2,574,161
Itau Unibanco Holding S.A.		42,027		483,883
				4,593,657
Capital Goods 0.2%
Embraer S.A.		73,851		576,013
Diversified Financials 0.1%
BM&F Bovespa S.A. - Bolsa de Valores Mercadorias e Futuros		136,733		563,188
Energy 1.9%
Cosan Ltd., Class A		60,000		435,600
Petroleo Brasileiro S.A. *		1,216,058		5,751,449
Ultrapar Participacoes S.A.		62,714		1,443,299
				7,630,348
Food, Beverage & Tobacco 1.0%
Ambev S.A.		344,751		2,167,173
BRF S.A.		33,718		720,702
JBS S.A.		199,700		1,030,000
				3,917,875
Materials 1.3%
Companhia Siderurgica Nacional S.A.		406,696		1,089,310
Usinas Siderurgicas de Minas Gerais S.A.		58,439		325,658
Vale S.A.		529,979		3,984,143
				5,399,111
Software & Services 0.1%
Cielo S.A.		38,988		542,709
Telecommunication Services 0.1%
Oi S.A. *		62,874		117,903
Tim Participacoes S.A.		138,747		444,385
				562,288
Transportation 0.1%
CCR S.A.		53,100		292,557
Utilities 0.4%
Centrais Eletricas Brasileiras S.A.		195,416		473,468
Companhia de Saneamento Basico do Estado de Sao Paulo		73,645		435,082
CPFL Energia S.A.		73,932		487,572
				1,396,122
				25,473,868
Chile 0.9%
Banks 0.1%
Banco Santander Chile		8,501,544		457,706
Energy 0.2%
Empresas Copec S.A.		56,545		649,077
Food & Staples Retailing 0.1%
Cencosud S.A.		188,330		487,968
Transportation 0.1%
Latam Airlines Group S.A. *		38,200		365,568
Utilities 0.4%
Empresa Nacional de Electricidad S.A.		358,179		551,806
Enersis S.A.		2,882,312		1,006,842
				1,558,648
				3,518,967
China 19.5%
Automobiles & Components 0.2%
Dongfeng Motor Group Co., Ltd., Class H		426,000		707,738
Banks 7.7%
Agricultural Bank of China Ltd., Class H		2,815,600		1,585,126
Bank of China Ltd., Class H		10,520,234		7,208,496
Bank of Communications Co., Ltd., Class H		851,000		872,326
BOC Hong Kong (Holdings) Ltd.		251,500		975,498
China CITIC Bank Corp. Ltd., Class H		687,000		623,007
China Construction Bank Corp., Class H		10,081,000		9,785,974
China Merchants Bank Co., Ltd., Class H		388,850		1,167,188
China Minsheng Banking Corp., Ltd., Class H		420,000		613,269

See financial notes 51

 Schwab Fundamental Emerging Markets Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Industrial & Commercial Bank of China Ltd., Class H		9,504,172		8,244,496
				31,075,380
Capital Goods 1.0%
China Communications Construction Co., Ltd., Class H		916,000		1,666,070
China Railway Construction Corp., Ltd., Class H		458,000		914,502
China Railway Group Ltd., Class H		824,000		1,156,364
CITIC Ltd.		216,000		432,106
				4,169,042
Consumer Durables & Apparel 0.3%
Belle International Holdings Ltd.		520,000		667,405
Yue Yuen Industrial Holdings Ltd.		135,500		514,859
				1,182,264
Energy 4.7%
China Coal Energy Co., Ltd., Class H (c)		769,000		505,490
China Petroleum & Chemical Corp., Class H		7,621,400		7,192,817
China Shenhua Energy Co., Ltd., Class H		615,500		1,598,487
CNOOC Ltd.		2,502,000		4,266,440
PetroChina Co., Ltd., Class H		4,204,000		5,422,164
				18,985,398
Food & Staples Retailing 0.1%
China Resources Enterprise Ltd.		198,000		606,545
Food, Beverage & Tobacco 0.1%
China Mengniu Dairy Co., Ltd.		82,000		415,261
Insurance 0.9%
China Life Insurance Co., Ltd., Class H		379,000		1,839,394
China Pacific Insurance Group Co., Ltd., Class H		115,200		624,414
Ping An Insurance (Group) Co. of China Ltd., Class H		73,500		1,051,141
				3,514,949
Materials 0.3%
China National Building Material Co., Ltd., Class H		494,000		599,192
Jiangxi Copper Co., Ltd., Class H		291,000		600,534
				1,199,726
Real Estate 0.2%
China Overseas Land & Investment Ltd.		232,000		966,368
Retailing 0.2%
GOME Electrical Appliances Holding Ltd.		2,746,000		703,445
Software & Services 0.2%
Tencent Holdings Ltd.		34,400		709,977
Technology Hardware & Equipment 0.3%
Kingboard Chemical Holdings Ltd.		202,500		368,551
Lenovo Group Ltd.		400,000		687,828
				1,056,379
Telecommunication Services 3.1%
China Mobile Ltd.		662,100		9,456,963
China Telecom Corp., Ltd., Class H		2,360,000		1,748,307
China Unicom (Hong Kong) Ltd.		803,056		1,508,243
				12,713,513
Utilities 0.2%
Huaneng Power International, Inc., Class H		434,000		615,506
				78,621,491
Colombia 0.3%
Banks 0.1%
Bancolombia S.A.		17,344		183,488
Energy 0.2%
Ecopetrol S.A.		1,091,025		929,799
				1,113,287
Czech Republic 0.4%
Telecommunication Services 0.1%
O2 Czech Republic A/S		45,326		372,166
Utilities 0.3%
CEZ A/S		40,961		1,064,174
				1,436,340
Greece 0.4%
Consumer Services 0.2%
OPAP S.A.		91,619		819,667
Telecommunication Services 0.1%
Hellenic Telecommunications Organization S.A. *		54,401		494,501
Utilities 0.1%
Public Power Corp. S.A. *		59,421		399,690
				1,713,858
Hungary 0.7%
Banks 0.3%
OTP Bank plc		54,181		1,198,061
Energy 0.3%
MOL Hungarian Oil & Gas plc		18,711		1,040,839
Telecommunication Services 0.1%
Magyar Telekom Telecommunications plc *		314,079		470,110
				2,709,010
India 3.2%
Automobiles & Components 0.3%
Mahindra & Mahindra Ltd.		19,592		352,706
Tata Motors Ltd. (a)		593		2,901
Tata Motors Ltd.		84,756		679,461
Tata Motors Ltd., Class A		10,785		52,700

52 See financial notes

 Schwab Fundamental Emerging Markets Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Tata Motors Ltd., Interim Shares (b)		4,665		37,329
				1,125,097
Banks 0.5%
Housing Development Finance Corp., Ltd.		46,184		849,467
ICICI Bank Ltd.		146,135		763,460
State Bank of India		143,300		607,397
				2,220,324
Energy 1.2%
Indian Oil Corp., Ltd.		85,870		487,590
Oil & Natural Gas Corp., Ltd.		263,112		1,256,773
Reliance Industries Ltd.		229,869		3,117,645
				4,862,008
Food, Beverage & Tobacco 0.1%
ITC Ltd.		74,361		377,395
Materials 0.2%
Hindalco Industries Ltd.		208,664		421,206
Tata Steel Ltd.		77,056		436,247
				857,453
Software & Services 0.5%
Infosys Ltd.		53,611		1,636,460
Tata Consultancy Services Ltd.		15,182		588,899
				2,225,359
Telecommunication Services 0.2%
Bharti Airtel Ltd.		128,671		770,472
Utilities 0.2%
NTPC Ltd.		292,681		691,497
				13,129,605
Indonesia 0.9%
Automobiles & Components 0.3%
PT Astra International Tbk		1,989,100		1,046,727
Banks 0.3%
PT Bank Central Asia Tbk		439,500		455,062
PT Bank Mandiri (Persero) Tbk		499,900		411,188
PT Bank Rakyat Indonesia (Persero) Tbk		574,000		512,467
				1,378,717
Telecommunication Services 0.3%
PT Telekomunikasi Indonesia (Persero) Tbk		5,753,400		1,157,131
				3,582,575
Malaysia 2.0%
Banks 0.6%
CIMB Group Holdings Berhad		383,000		633,594
Malayan Banking Berhad		324,400		838,283
Public Bank Berhad		153,800		841,226
				2,313,103
Capital Goods 0.3%
Sime Darby Berhad		443,500		1,126,860
Consumer Services 0.1%
Genting Berhad		204,800		502,735
Food, Beverage & Tobacco 0.1%
IOI Corp. Berhad		298,000		363,139
Materials 0.1%
Petronas Chemicals Group Berhad		246,400		405,156
Telecommunication Services 0.5%
Axiata Group Berhad		430,900		814,271
DiGi.com Berhad		276,200		465,632
Maxis Berhad		244,700		475,857
Telekom Malaysia Berhad		222,500		462,013
				2,217,773
Utilities 0.3%
Tenaga Nasional Berhad		290,900		1,170,796
				8,099,562
Mexico 3.1%
Banks 0.3%
Grupo Financiero Banorte S.A.B. de C.V., Class O		102,400		583,884
Grupo Financiero Santander Mexico S.A.B. de C.V., Class B		214,700		437,461
				1,021,345
Capital Goods 0.1%
Alfa S.A.B. de C.V., Class A		261,900		531,755
Food & Staples Retailing 0.3%
Wal-Mart de Mexico S.A.B. de C.V.		502,737		1,187,537
Food, Beverage & Tobacco 0.5%
Coca-Cola Femsa S.A.B. de C.V., Series L		41,500		331,984
Fomento Economico Mexicano S.A.B. de C.V. *		138,150		1,252,373
Grupo Bimbo S.A.B. de C.V., Series A *		169,900		456,256
				2,040,613
Materials 0.6%
Cemex S.A.B. de C.V., Series CPO *		1,651,795		1,593,441
Grupo Mexico S.A.B. de C.V., Series B		333,997		1,031,032
				2,624,473
Media 0.3%
Grupo Televisa S.A.B., Series CPO *		164,217		1,195,181
Telecommunication Services 1.0%
America Movil S.A.B. de C.V., Series L		3,939,200		4,136,391
				12,737,295
Peru 0.1%
Banks 0.1%
Credicorp Ltd.		3,282		500,669

See financial notes 53

 Schwab Fundamental Emerging Markets Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Philippines 0.2%
Telecommunication Services 0.2%
Philippine Long Distance Telephone Co.		11,230		704,662
Poland 2.2%
Banks 0.3%
Bank Pekao S.A.		8,137		422,951
Powszechna Kasa Oszczednosci Bank Polski S.A.		84,908		849,117
				1,272,068
Energy 0.7%
Polski Koncern Naftowy Orlen S.A.		154,527		2,934,710
Insurance 0.2%
Powszechny Zaklad Ubezpieczen S.A.		5,960		777,332
Materials 0.4%
KGHM Polska Miedz S.A.		49,457		1,734,086
Telecommunication Services 0.2%
Orange Polska S.A.		320,708		908,437
Utilities 0.4%
PGE S.A.		143,647		826,566
Tauron Polska Energia S.A.		400,460		535,609
				1,362,175
				8,988,808
Republic of Korea 17.3%
Automobiles & Components 1.8%
Hyundai Mobis Co., Ltd.		7,853		1,726,702
Hyundai Motor Co.		22,069		3,463,533
Kia Motors Corp.		43,706		2,014,050
				7,204,285
Banks 1.2%
Hana Financial Group, Inc.		30,439		895,998
KB Financial Group, Inc.		32,421		1,236,352
Shinhan Financial Group Co., Ltd.		51,181		2,118,287
Woori Bank		45,902		458,546
				4,709,183
Capital Goods 2.6%
Daelim Industrial Co., Ltd.		6,633		510,827
Daewoo Shipbuilding & Marine Engineering Co., Ltd.		24,101		405,124
Doosan Heavy Industries & Construction Co., Ltd.		17,666		501,219
Hyundai Engineering & Construction Co., Ltd.		11,044		531,341
Hyundai Heavy Industries Co., Ltd. *		14,908		1,936,984
LG Corp.		33,861		2,101,049
Samsung C&T Corp.		19,304		1,025,174
Samsung Heavy Industries Co., Ltd.		30,490		513,563
SK Holdings Co., Ltd.		14,874		2,561,130
SK Networks Co., Ltd.		70,953		524,430
				10,610,841
Consumer Durables & Apparel 0.6%
LG Electronics, Inc.		40,783		2,293,344
Energy 1.5%
GS Holdings Corp.		26,884		1,254,090
S-Oil Corp.		17,252		1,175,451
SK Innovation Co., Ltd. *		32,801		3,590,230
				6,019,771
Food & Staples Retailing 0.2%
E-Mart Co., Ltd.		3,161		651,214
Food, Beverage & Tobacco 0.3%
KT&G Corp.		12,165		1,079,190
Insurance 0.3%
Samsung Fire & Marine Insurance Co., Ltd.		2,832		746,306
Samsung Life Insurance Co., Ltd.		6,321		618,271
				1,364,577
Materials 2.3%
Hanwha Corp.		23,845		936,374
Hyosung Corp.		5,565		615,535
Hyundai Steel Co.		10,061		735,376
LG Chem Ltd.		7,572		1,912,750
Lotte Chemical Corp.		3,335		773,700
OCI Co., Ltd.		3,665		337,791
POSCO		17,742		4,179,369
				9,490,895
Retailing 0.1%
Lotte Shopping Co., Ltd.		2,012		485,230
Semiconductors & Semiconductor Equipment 0.3%
SK Hynix, Inc.		30,987		1,325,780
Software & Services 0.4%
NAVER Corp.		623		376,715
SK C&C Co., Ltd.		5,209		1,232,804
				1,609,519
Technology Hardware & Equipment 4.7%
LG Display Co., Ltd.		56,253		1,557,819
Samsung Electro-Mechanics Co., Ltd.		9,371		588,085
Samsung Electronics Co., Ltd.		12,386		16,248,620
Samsung SDI Co., Ltd.		4,840		538,845
				18,933,369
Telecommunication Services 0.5%
KT Corp. *		48,826		1,443,294
LG Uplus Corp.		49,955		499,756
				1,943,050
Utilities 0.5%
Korea Electric Power Corp.		38,598		1,678,393
Korea Gas Corp.		7,961		343,361
				2,021,754
				69,742,002
Russia 11.8%
Banks 0.4%
Sberbank of Russia ADR		214,003		1,270,165

54 See financial notes

 Schwab Fundamental Emerging Markets Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
VTB Bank OJSC *		180,000,000		228,960
				1,499,125
Energy 9.3%
Bashneft OAO *		10,000		416,812
Gazprom OAO		2,924,000		8,713,532
Gazprom OAO ADR		1,420,000		8,319,706
LUKOIL OAO *		92,799		4,766,240
LUKOIL OAO ADR		127,000		6,496,749
NovaTek OAO *		97,090		931,129
Rosneft Oil Co. GDR - Reg’d		213,200		1,051,974
Surgutneftegas ADR		712,500		5,160,495
Tatneft ADR		52,100		1,787,141
				37,643,778
Food & Staples Retailing 0.2%
Magnit PJSC *		3,200		700,757
Materials 0.9%
MMC Norilsk Nickel OJSC ADR		112,700		2,122,991
Severstal PAO GDR - Reg’d		76,510		848,151
Uralkali PJSC GDR - Reg’d		43,732		643,205
				3,614,347
Telecommunication Services 0.7%
Mobile TeleSystems ADR		144,851		1,749,800
Rostelecom *		250,000		384,634
Sistema JSFC *		2,338,800		724,661
				2,859,095
Transportation 0.2%
Aeroflot Russian Airlines *		730,000		540,662
Globaltrans Investment plc GDR - Reg’d *		73,500		363,825
				904,487
Utilities 0.1%
Federal Hydrogenerating Co., ADR *		24,000,001		278,856
				47,500,445
South Africa 6.6%
Banks 0.8%
Barclays Africa Group Ltd.		32,927		527,427
Nedbank Group Ltd.		27,746		599,296
Standard Bank Group Ltd.		142,522		2,089,078
				3,215,801
Capital Goods 0.6%
Aveng Ltd. *		449,398		403,368
Barloworld Ltd.		67,710		540,156
The Bidvest Group Ltd.		53,292		1,444,429
				2,387,953
Consumer Durables & Apparel 0.2%
Steinhoff International Holdings Ltd.		114,444		726,179
Diversified Financials 0.4%
African Bank Investments Ltd. *(a)(b)		319,000		—
FirstRand Ltd.		219,251		1,047,382
Remgro Ltd.		18,696		415,270
				1,462,652
Energy 1.1%
Sasol Ltd.		113,822		4,582,869
Food & Staples Retailing 0.2%
Shoprite Holdings Ltd.		46,145		660,239
Food, Beverage & Tobacco 0.1%
Tiger Brands Ltd.		20,514		533,922
Insurance 0.2%
Sanlam Ltd.		120,344		778,339
Materials 1.1%
AngloGold Ashanti Ltd. *		87,464		993,279
Gold Fields Ltd.		302,124		1,394,881
Impala Platinum Holdings Ltd. *		165,373		920,382
Kumba Iron Ore Ltd.		35,075		473,086
Sappi Ltd. *		118,605		486,534
				4,268,162
Media 0.2%
Naspers Ltd., N Shares		6,610		1,037,015
Retailing 0.3%
Imperial Holdings Ltd.		45,034		754,154
Woolworths Holdings Ltd.		73,444		552,501
				1,306,655
Telecommunication Services 1.4%
MTN Group Ltd.		216,190		4,340,860
Telkom SA SOC Ltd. *		117,319		806,479
Vodacom Group Ltd.		44,801		558,555
				5,705,894
				26,665,680
Taiwan 11.8%
Banks 0.4%
CTBC Financial Holding Co., Ltd.		863,076		671,795
Mega Financial Holding Co., Ltd.		652,404		580,288
Taishin Financial Holding Co., Ltd.		1,010,122		462,414
				1,714,497
Capital Goods 0.3%
Far Eastern New Century Corp.		679,879		746,786
Walsin Lihwa Corp. *		1,472,000		434,288
				1,181,074
Consumer Durables & Apparel 0.2%
Pou Chen Corp.		443,267		621,174
Diversified Financials 0.2%
Fubon Financial Holding Co., Ltd.		441,674		949,844
Energy 0.2%
Formosa Petrochemical Corp.		289,330		745,910
Food, Beverage & Tobacco 0.2%
Uni-President Enterprises Corp.		451,229		738,461
Insurance 0.1%
Cathay Financial Holding Co., Ltd.		288,599		504,190
Materials 1.7%
China Steel Corp.		1,794,198		1,507,050
Formosa Chemicals & Fibre Corp.		650,442		1,657,431
Formosa Plastics Corp.		606,732		1,559,662

See financial notes 55

 Schwab Fundamental Emerging Markets Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Nan Ya Plastics Corp.		596,811		1,466,841
Taiwan Cement Corp.		418,299		594,054
				6,785,038
Semiconductors & Semiconductor Equipment 2.7%
Advanced Semiconductor Engineering, Inc.		563,094		798,537
MediaTek, Inc.		78,138		1,004,401
Siliconware Precision Industries Co., Ltd.		379,270		623,067
Taiwan Semiconductor Manufacturing Co., Ltd.		1,520,689		7,321,010
United Microelectronics Corp.		2,305,965		1,104,830
				10,851,845
Technology Hardware & Equipment 5.1%
Acer, Inc. *		1,609,496		1,052,467
Asustek Computer, Inc.		154,041		1,631,965
AU Optronics Corp.		2,856,800		1,433,675
Compal Electronics, Inc.		2,165,305		1,971,344
Delta Electronics, Inc.		133,025		800,473
Foxconn Technology Co., Ltd.		155,650		443,609
Hon Hai Precision Industry Co., Ltd.		1,900,416		5,694,495
HTC Corp. *		401,473		1,652,959
Innolux Corp.		1,772,357		914,247
Inventec Corp.		742,639		524,081
Lite-On Technology Corp.		557,855		704,840
Pegatron Corp.		322,264		954,691
Quanta Computer, Inc.		430,500		1,080,088
Synnex Technology International Corp.		305,000		432,156
Wistron Corp.		1,046,231		890,044
WPG Holdings Ltd.		414,000		517,948
				20,699,082
Telecommunication Services 0.7%
Chunghwa Telecom Co., Ltd.		597,906		1,929,615
Far EasTone Telecommunications Co., Ltd.		211,622		504,560
Taiwan Mobile Co., Ltd.		159,600		562,279
				2,996,454
				47,787,569
Thailand 1.3%
Banks 0.1%
The Siam Commercial Bank PCL		71,500		344,866
Energy 0.9%
PTT Exploration & Production PCL		144,000		511,088
PTT PCL		225,187		2,431,869
Thai Oil PCL		422,800		750,305
				3,693,262
Materials 0.2%
PTT Global Chemical PCL		366,600		708,956
Telecommunication Services 0.1%
Advanced Info Service PCL - Reg’d		87,075		633,945
				5,381,029
Turkey 1.4%
Banks 0.6%
Akbank T.A.S.		178,413		519,813
Turkiye Garanti Bankasi A/S		233,591		743,229
Turkiye Halk Bankasi A/S		82,207		416,446
Turkiye Is Bankasi, Class C		214,888		483,192
Turkiye Vakiflar Bankasi T.A.O., Class D		212,134		376,372
				2,539,052
Capital Goods 0.2%
KOC Holding A/S		170,250		805,220
Diversified Financials 0.1%
Haci Omer Sabanci Holding A/S		124,138		453,811
Energy 0.2%
Tupras-Turkiye Petrol Rafinerileri A/S *		37,606		913,435
Telecommunication Services 0.3%
Turk Telekomunikasyon A/S		141,963		392,383
Turkcell Iletisim Hizmetleri A/S		126,700		564,139
				956,522
				5,668,040
Total Common Stock
(Cost $343,323,329)				365,074,762
Preferred Stock 9.3% of net assets
Brazil 7.1%
Banks 2.2%
Banco Bradesco S.A.		306,320		3,269,641
Itau Unibanco Holding S.A.		387,780		4,958,981
Itausa - Investimentos Itau S.A.		183,656		646,738
				8,875,360
Energy 1.9%
Petroleo Brasileiro S.A. *		1,806,860		7,826,058
Food & Staples Retailing 0.2%
Compania Brasileira de Distribuicao Grupo Pao de Acucar		17,638		597,115
Materials 1.8%
Bradespar S.A.		68,208		272,791
Gerdau S.A.		391,890		1,307,189
Metalurgica Gerdau S.A.		269,430		879,932
Usinas Siderurgicas de Minas Gerais S.A., Class A		176,978		350,673
Vale S.A.		736,402		4,436,083
				7,246,668
Telecommunication Services 0.3%
Oi S.A. *		145,667		273,161
Telefonica Brasil S.A.		62,572		1,038,384
				1,311,545
Utilities 0.7%
Centrais Eletricas Brasileiras S.A., Class B		234,620		689,154

56 See financial notes

 Schwab Fundamental Emerging Markets Large Company Index Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Companhia Energetica de Minas Gerais		269,890		1,303,341
Companhia Paranaense de Energia-Copel		34,544		388,784
Eletropaulo Metropolitana S.A.		160,993		579,755
				2,961,034
				28,817,780
Colombia 0.1%
Banks 0.1%
Bancolombia S.A.		43,027		470,732
Republic of Korea 0.9%
Automobiles & Components 0.3%
Hyundai Motor Co., Ltd.		3,335		368,638
Hyundai Motor Co., Ltd. 2nd		5,260		596,429
				965,067
Consumer Durables & Apparel 0.1%
LG Electronics, Inc.		6,657		180,853
Materials 0.0%
LG Chem Ltd.		878		149,822
Technology Hardware & Equipment 0.5%
Samsung Electronics Co., Ltd.		2,107		2,137,955
				3,433,697
Russia 1.2%
Energy 1.2%
AK Transneft OAO *		1,646		3,876,775
Surgutneftegas *		1,400,000		1,055,911
				4,932,686
Total Preferred Stock
(Cost $51,464,277)				37,654,895
Other Investment Company 0.1% of net assets
United States 0.1%
Securities Lending Collateral 0.1%
Wells Fargo Advantage Government Money Market Fund, Institutional Class 0.01% (d)		511,000		511,000
Total Other Investment Company
(Cost $511,000)				511,000
Security	Face Amount		Value
Rate, Maturity Date	Local Currency		($)
Corporate Bond 0.0% of net assets
India 0.0%
Utilities 0.0%
NTPC Ltd.
8.49%, 03/25/25 (a)		3,658,512		57,601
Total Corporate Bond
(Cost $59,699)				57,601
Short-Term Investments 0.4% of net assets
Time Deposits 0.4%
Brown Brothers Harriman
South African Rand
4.76%, 05/04/15		15,162		1,274
DNB
Euro
(0.19)%, 05/04/15		43,057		48,347
JPMorgan Chase Bank
US Dollar
0.03%, 05/01/15		1,290,784		1,290,784
Total Short-Term Investments
(Cost $1,340,405)				1,340,405
End of Investments.

At 04/30/15, the tax basis cost of the fund’s investments was $411,620,368 and the unrealized appreciation and depreciation were $44,009,653 and ($50,991,358), respectively, with a net unrealized depreciation of ($6,981,705).

At 04/30/15, the values of certain foreign securities held by the fund aggregating $294,566,847 were adjusted from their closing market values in accordance with international fair valuation procedures approved by the fund’s Board of Trustees. (See financial note 2(a) for additional information)

*	Non-income producing security.
(a)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(b)	Illiquid security. At the period end, the value of these amounted to $37,329 or 0.0% of net assets.
(c)	All or a portion of this security is on loan. Securities on loan were valued at $479,855.
(d)	The rate shown is the 7-day yield.

ADR —	American Depositary Receipt
GDR —	Global Depositary Receipt
Reg’d —	Registered

See financial notes 57

 Schwab Fundamental Emerging Markets Large Company Index Fund

Portfolio Holdings (Unaudited) continued

In addition to the above, the fund held the following at 04/30/15:

			Contract		Unrealized
	Number of		Value		Appreciation
	Contracts		($)		($)
Futures Contracts
MSCI Emerging Markets, mini, Long, expires 06/19/15		10		519,350		689

58 See financial notes

Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8: Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10: Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11: Controls and Procedures.

(a)

Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, Marie Chandoha and Registrant’s Principal Financial Officer, George Pereira, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above.

(b)

There have been no changes in Registrant’s internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting.

Item 12: Exhibits.

(a) (1) Code of ethics – not applicable to this semi-annual report.

(2)	Separate certifications for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the 1940 Act, are attached.
(3)	Not applicable.

(b) A certification for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, is attached. This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. section 1350 and is not being filed as part of the Form N-CSR with the Commission.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Schwab Capital Trust

By: /s/ Marie Chandoha   Marie Chandoha
Chief Executive Officer

Date: 6/11/15

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Marie ChandohaMarie Chandoha
	Chief Executive Officer

Date: 6/11/15

By:	/s/ George PereiraGeorge Pereira
	Principal Financial Officer

Date: 6/11/15