Schwab Core Equity Fund NCSRS Certified semi-annual shareholder report (management investment company)

Number of
Contracts

Notional
Amount
($)

Current Value/
Unrealized
Depreciation
($)

Futures Contracts

Russell 1000 Growth Index, e-mini, expires 06/21/19

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORMN-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)

Jonathan de St. Paer

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, 2019

Item 1: Report(s) to Shareholders.

Semiannual Report | April 30, 2019

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 U.S. Large-Cap Growth
Index Fund

Schwab U.S. Large-Cap Value
Index Fund

Schwab U.S. Mid-Cap Index Fund

Schwab International Index Fund^®

New Notice Regarding Shareholder Report Delivery Options

Beginning on January 1, 2021, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary (such as a bank or broker-dealer). Instead, the reports will be made available on a fund’s websitewww.schwabfunds.com/schwabfunds_prospectus, and you will be notified by mail each time a report is posted and the mailing will provide a website link to access the report. You will continue to receive other fund regulatory documents (such as prospectuses or supplements) in paper unless you have elected to receive all fund documents electronically.

If you would like to receive a fund’s future shareholder reports in paper free of charge after January 1, 2021, you can make that request:

• If you invest through Charles Schwab & Co, Inc. (broker-dealer), by calling 1-866-345-5954 and using the unique identifier attached to this mailing;

• If you invest through another financial intermediary (such as a bank or broker-dealer) by contacting them directly; or

• If owned directly through a fund by calling 1-800-407-0256.

If you already receive shareholder reports and other fund documents electronically, you will not be affected by this change and you need not take any action.

This page is intentionally left blank.

Eight cost-efficient ways to tap into the power of the stock market for long-term growth potential.

In This Report

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 Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab. The Industry classifications used in the schedules of Condensed Portfolio Holdings are sub-categories of Sector classifications.

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Schwab Equity Index Funds

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 visitwww.schwabfunds.com/schwabfunds_prospectus.

Total Return for the 6 Months Ended April 30, 2019
Schwab S&P 500 Index Fund (Ticker Symbol: SWPPX)	9.77%
S&P 500^® Index	9.76%
Fund Category: Morningstar Large Blend¹	9.02%
Performance Details	pages 8-9

Schwab 1000 Index Fund (Ticker Symbol: SNXFX)	9.99%
Schwab 1000 Index^®	10.01%
Fund Category: Morningstar Large Blend¹	9.02%
Performance Details	pages 10-11

Schwab Small-Cap Index Fund (Ticker Symbol: SWSSX)	6.08%
Russell 2000^® Index	6.06%
Fund Category: Morningstar Small Blend¹	5.23%
Performance Details	pages 12-13

Schwab Total Stock Market Index Fund (Ticker Symbol: SWTSX)	9.66%
Dow Jones U.S. Total Stock Market Index^SM	9.68%
Fund Category: Morningstar Large Blend¹	9.02%
Performance Details	pages 14-15

Total Return for the 6 Months Ended April 30, 2019
Schwab U.S. Large-Cap Growth Index Fund (Ticker Symbol: SWLGX)	12.05%
Russell 1000^® Growth Index	12.09%
Fund Category: Morningstar Large Growth¹	12.15%
Performance Details	pages 16-17

Schwab U.S. Large-Cap Value Index Fund (Ticker Symbol: SWLVX)	7.80%
Russell 1000^® Value Index	7.90%
Fund Category: Morningstar Large Value¹	6.85%
Performance Details	pages 18-19

Schwab U.S. Mid-Cap Index Fund (Ticker Symbol: SWMCX)	11.59%
Russell Midcap^® Index	11.65%
Fund Category: Morningstar Mid-Cap Blend¹	8.39%
Performance Details	pages 20-21

Schwab International Index Fund² (Ticker Symbol: SWISX)	8.01%
MSCI EAFE^® Index (Net)³	7.45%
Fund Category: Morningstar Foreign Large Blend¹	7.76%
Performance Details	pages 22-23

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.

Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.

¹	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date.
²	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.
³	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.

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Schwab Equity Index Funds

From the President

Jonathan de St. Paer
President and CEO of
Charles Schwab Investment
Management, Inc. and the
funds covered in this report.

Dear Shareholder,

Investors are often warned that they should not overreact to sudden changes in the market, and recent swings in stock performance have certainly shown why. After declining 9.0% in the final month of 2018, the S&P 500^® Index rebounded in January, ending up with a 9.8% return for the full six-month period ended April 30, 2019. Similarly, the MSCI EAFE^® Index (Net)*, which broadly represents the performance of international stocks, returned 7.5% for the period after falling 4.9% in December. Those who stayed invested were rewarded for their patience, but many investors appear to be skeptical of recent gains. In fact, data shows that investors pulled money out of stock mutual funds late last year and continued to do so into the first months of 2019 despite the market’s recovery.

As investors, we will always be faced with market headwinds or tailwinds. At Charles Schwab Investment Management, we believe the challenge is to not let these ups and downs unduly influence investment decisions. As the adage goes, time in the market is more important than timing the market. That’s why having a long-term investing plan and a portfolio based on your individual goals and risk tolerance is important. We aim to offer products with clear objectives, straightforward pricing, and a consistent approach to investing—all of which are intended to help make it easier for investors to stay invested and focused on their long-term goals.

The Schwab Equity Index Funds are an important part of this approach. Designed to serve as part of the core of a diversified portfolio, the funds are a simple way to capture the performance of broad segments of the equity market—whether small-cap, international, value or growth. And, with among the lowest expenses in the industry with no investment minimums, the Schwab Equity Index Funds are one way we can help ensure that every investor, regardless of account size, has access to low pricing.

In keeping with our commitment to reducing investing costs, in December 2018 we further reduced the management fees of five of the Schwab Equity Index Funds. The operating expenses for the Schwab Small-Cap Index Fund and Schwab U.S. Mid-Cap Index Fund were lowered to 0.04%; Schwab U.S. Large-Cap Growth Index Fund and Schwab U.S. Large-Cap Value Index Fund were dropped to 0.035%; and the Schwab S&P 500 Index Fund was reduced to 0.02%.

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Schwab Equity Index Funds

From the President(continued)

“In keeping with our commitment to reducing investing costs, in December 2018 we further reduced the management fees of five of the Schwab Equity Index Funds.”

At Charles Schwab Investment Management, we take great pride in our role as an industry leader, and we seek to use our size and scale to continue to drive down fund costs to benefit investors. This has been a cornerstone of our philosophy—and it will continue to be.

On April 1, 2019, I transitioned into the role of Chief Executive Officer of Charles Schwab Investment Management, replacing Marie Chandoha upon her retirement. Looking back at how Charles Schwab Investment Management has grown into the market leader it is today, I believe Marie deserves particular credit. As CEO for over eight years, Marie provided the vision and leadership that has helped us stay focused on the goal of giving investors what they want and need, without unnecessary costs or complexity. It’s been my privilege to be part of the great team Marie built, and I look forward to furthering our organization’s important mission.

Thank you for investing with Charles Schwab Investment Management, and for trusting us to help you achieve your financial goals. For more information about the Schwab Equity Index Funds, please continue reading this report. In addition, you can find further details about these funds by visiting our website at www.schwabfunds.com. We are also happy to hear from you at 1-877-824-5615.

Sincerely,

Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.

Management views may have changed since the report date.

*	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.

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Schwab Equity Index Funds

The Investment Environment

Over the six-month reporting period ended April 30, 2019, both U.S. and international equities generated positive returns. The first two months of the reporting period were marked by significant market volatility and steep declines across global equity markets, driven by concerns about slowing international growth, trade negotiations with China, falling oil prices, the waning strength of the U.S. economy, and the pace of interest rate hikes despite low inflation. By late December, major market indices had fallen to near–bear market territory. However, as the Federal Reserve (Fed) put interest rate hikes on hold, stocks staged a strong recovery in the first four months of 2019 as investors were buoyed by renewed signs of economic strength both domestically and internationally, recovering oil prices, and a more dovish Fed. The U.S. dollar, as measured against a basket of international currencies, ended the period just below its highest level since May 2017. Small-cap stocks lagged large-caps, and growth stocks outperformed value stocks. By the end of the reporting period, several key market indices had reached new highs. For the reporting period, the S&P 500^® Index, a bellwether for the overall U.S. stock market, returned 9.76%. The Russell 2000^® Index, a U.S. small-cap company measure, returned 6.06%. Markets outside the U.S. also rebounded in the first four months of 2019 to varying degrees with the MSCI EAFE^® Index (Net)*, a broad measure of international developed equity market performance, returning 7.45% for the reporting period.

In the last two months of 2018, economies around the globe showed increasing signs of weakness, but many regained momentum at the start of 2019, demonstrating surprisingly resilient growth despite lingering uncertainties on various fronts. Global oil prices fell precipitously in the last two months of 2018 amid concerns of economic slowing, a global oil glut, and increased geopolitical risk related to North Korea and Iran, but rebounded steadily throughout the first four months of 2019 as major exporters sought to curb supply and central banks took steps to ease growth-related fears.

Asset Class Performance Comparison % returns during the 6 months ended April 30, 2019

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

For index definitions, please see the Glossary.

Data source: Index provider websites and CSIM.

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

Management views may have changed since the report date.

*	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.

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Schwab Equity Index Funds

The Investment Environment(continued)

In the U.S., gross domestic product (GDP) grew at an annual rate of 2.2% in the fourth quarter of 2018, down from the previous two quarters, but jumped to 3.1% for the first quarter of 2019. The labor market remained strong, with the unemployment rate hitting a 50-year low in April. Despite a tight labor market, growing economy, and recovering oil prices, inflation and wage pressure remained in check. The 35-day partial U.S. government shutdown that began in late December and extended through late January had surprisingly little effect on the market, with the exception of consumer confidence, which fell in January but subsequently rebounded as the market rallied. U.S. manufacturing slowed, however, as manufacturers grappled with a cooling global economy and uncertainty surrounding trade and tariffs. From a sector perspective, cyclical and growth-oriented sectors, such as the Consumer Discretionary, Industrials, and Information Technology sectors, generally outperformed value-oriented sectors, including the Materials and Energy sectors.

Outside the U.S., conditions were softer but most economies showed renewed strength in early 2019. The eurozone and China showed particular resiliency, with both reporting positive GDP growth in the first quarter of 2019, exceeding expectations. For the first quarter of 2019, the eurozone economy expanded by 0.4%, up from 0.2% the previous quarter. Amid ongoing Brexit-related economic and political uncertainty as well as rapidly growing wage pressures, the United Kingdom’s economy continued to show resiliency in the first few months of 2019, growing modestly in the fourth quarter of 2018 although at a slower pace than in the third quarter. Japan’s economy expanded in the fourth quarter of 2018 after having contracted the previous quarter. However, Japanese equities underperformed equities in many other international markets, contributing to the U.S. market outperforming international markets. Several other Asian economies, including China and India, also exhibited signs of slowing but still outpaced many developed economies. During much of the reporting period, trade issues dominated headlines—particularly between the U.S. and China. Following the implementation of a series of tariffs on goods and services from both sides, as of the end of the reporting period, negotiations continued between the two countries in an effort to resolve the underlying issues.

Globally, monetary policy mostly remained accommodative during the reporting period, with several central banks scaling back plans to raise interest rates. In the U.S., after raising short-term interest rates in December by 0.25%—the fourth such increase in 2018—the Fed held rates steady at its first three meetings in 2019, citing a still-healthy economy and continued low inflation, and reasserted its willingness to take a wait-and-see approach toward future rate hikes. The federal funds rate ended the reporting period in a target range of 2.25% to 2.50%. The Fed also announced that, in September 2019, it would end its program of allowing securities to mature without reinvesting the proceeds to reduce the size of its balance sheet. Outside the U.S., most central banks maintained accommodative monetary policies or, in some cases, in the face of signs of rising inflation, tightened their policies. The European Central Bank has held interest rates unchanged since early 2016 and in March announced that it would likely maintain those rates at least through the end of 2019, but ended its monthly asset purchase program in December 2018. Also in March, the Bank of Japan upheld its short-term interest rate target of –0.1%, also unchanged since 2016, and maintained its pledge to keep interest rates extremely low for an extended period. The Bank of England held its key interest rate steady at 0.75% at its March meeting and reaffirmed its pledge to gradual and limited rate hikes given ongoing concerns over the United Kingdom economy’s wider direction and intensifying uncertainties surrounding the impact of Brexit. In December, the People’s Bank of China maintained its prudent (but no longer neutral) policy stance, indicating it would place a greater focus on flexibility as its economy faces continued headwinds. Beginning in January 2019, China started a fiscal stimulus program intended to continue spurring growth within the Chinese economy. This has helped not only the Chinese economy, but the economies of other emerging market countries that are linked to the Chinese economy.

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Schwab Equity Index Funds

Fund Management

Christopher Bliss, CFA, Vice President and Head of the Passive Equity Team, leads the portfolio management team for Schwab’s passive equity mutual funds and ETFs. He also has overall responsibility for all aspects of the management of the funds. Prior to joining CSIM in 2016, Mr. Bliss spent 12 years at BlackRock (formerly Barclays Global Investors) managing and leading institutional index teams, most recently as a Managing Director and Head of Americas Institutional Index team. Prior to BlackRock, he worked as an equity analyst and portfolio manager for Harris Bretall and before that, as a research analyst for JP Morgan.

Jeremy Brown, Portfolio Manager, is responsible for the day-to-day co-management of the funds, except for the Schwab International Index Fund. Prior to joining CSIM in 2017, Mr. Brown spent six years with ALPS Advisors, Inc. in Denver, most recently as a senior analyst on the ETF Portfolio Management and Research Team where he performed portfolio management, trading and analytics/research functions of ALPS ETFs and passive funds. Additionally, Mr. Brown led a number of investment research, commentary, industry trend analysis and sales and marketing support initiatives.

Chuck Craig, CFA, Senior Portfolio Manager, is responsible for the day-to-day co-management of the Schwab International Index Fund. Prior to joining CSIM in 2012, Mr. Craig worked at Guggenheim Funds (formerly Claymore Group), where he spent more than five years as a managing director of portfolio management and supervision, and three years as vice president of product research and development. Prior to that, he worked as an equity research analyst at First Trust Portfolios (formerly Niké Securities), and a trader and analyst at PMA Securities, Inc.

Ferian Juwono, CFA, Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds, except for the Schwab International Index Fund. Prior to joining CSIM in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors), where he spent more than 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 more than 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 International Index Fund. Prior to joining CSIM in 2012, Ms. Qin spent more than four years at The Bank of New York Mellon Corporation. During that time, Ms. Qin spent more than two years as an associate equity portfolio manager and nearly two years as a performance analyst. She also worked at Wells Fargo Funds Management as a mutual fund analyst and at CIGNA Reinsurance in the Risk Management group as a risk analyst.

David Rios, Portfolio Manager, is responsible for the day-to-day co-management of the Schwab International Index Fund. He joined CSIM in 2008 and became a Portfolio Manager in 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).

Sabya Sinha, Portfolio Manager, is responsible for the day-to-day co-management of the funds, except for the Schwab International Index Fund. Prior to joining CSIM in 2015, Mr. Sinha spent a year at F-Squared Investments on the product development and analytics team. Prior to F-Squared, he worked at IndexIQ Advisors as a senior index portfolio manager for three years and for Bank of America’s Columbia Management subsidiary as a portfolio manager for three years.

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Schwab S&P 500 Index Fund

Average Annual Total Returns^1,2

Fund and Inception Date	6 Months	1 Year	5 Years	10 Years
Fund: Schwab S&P 500 Index Fund (5/19/97)	9.77%	13.46%	11.55%	15.22%
S&P 500^® Index	9.76%	13.49%	11.63%	15.32%
Fund Category: Morningstar Large Blend³	9.02%	10.88%	9.71%	13.89%
Fund Expense Ratio⁴: 0.02%

For index definitions, please see the Glossary.

Index ownership – “Standard & Poor’s^®,” “S&P^®,” and “S&P 500^®” are registered trademarks of Standard & Poor’s Financial Services LLC (S&P), and “Dow Jones^®” is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones) and have been licensed for use by S& P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by CSIM. The “S&P 500^® Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab S&P 500 Index Fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in the fund.

¹	Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
²	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.
³	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date.
⁴	As stated in the prospectus.

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Schwab S&P 500 Index Fund

Performance and Fund Factsas of April 30, 2019

Statistics¹

Number of Holdings	507
Weighted Average Market Cap (millions)	$246,822
Price/Earnings Ratio (P/E)	20.3
Price/Book Ratio (P/B)	3.3
Portfolio Turnover Rate	1%²

Sector Weightings % of Investments³

Top Equity Holdings % of Net Assets⁴

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S& P and MSCI.

¹	Excludes derivatives.
²	Not annualized.
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
⁴	This list is not a recommendation of any security by the investment adviser.

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Schwab 1000 Index Fund

Average Annual Total Returns^1,2

Fund and Inception Date	6 Months	1 Year	5 Years	10 Years
Fund: Schwab 1000 Index Fund (4/2/91)	9.99%	13.17%	11.20%	15.06%
Schwab 1000 Index^®	10.01%	13.20%	11.37%	15.32%
Russell 1000^® Index	10.00%	13.33%	11.41%	15.39%
Fund Category: Morningstar Large Blend³	9.02%	10.88%	9.71%	13.89%
Fund Expense Ratio⁴: 0.05%

For index definitions, please see the Glossary.

¹	Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
²	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.
³	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date.
⁴	As stated in the prospectus.

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Schwab 1000 Index Fund

Performance and Fund Factsas of April 30, 2019

Statistics¹

Number of Holdings	996²
Weighted Average Market Cap (millions)	$220,675
Price/Earnings Ratio (P/E)	20.4
Price/Book Ratio (P/B)	3.2
Portfolio Turnover Rate	2%³

Sector Weightings % of Investments⁴

Top Equity Holdings % of Net Assets⁵

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S& P and MSCI.

¹	Excludes derivatives.
²	As a result of the Schwab 1000 Index^®’s once per year reconstitution and the effects of certain corporate actions, the fund may hold less than 1,000 securities.
³	Not annualized.
⁴	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
⁵	This list is not a recommendation of any security by the investment adviser.

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Schwab Small-Cap Index Fund

Average Annual Total Returns^1,2

Fund and Inception Date	6 Months	1 Year	5 Years	10 Years
Fund: Schwab Small-Cap Index Fund (5/19/97)	6.08%	4.63%	8.67%	14.70%
Russell 2000^® Index	6.06%	4.61%	8.63%	14.10%
Small-Cap Spliced Index	6.06%	4.61%	8.63%	14.72%
Fund Category: Morningstar Small Blend³	5.23%	3.23%	7.00%	13.39%
Fund Expense Ratio⁴: 0.04%

The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.

For index definitions, please see the Glossary.

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.

¹	Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
²	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.
³	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date.
⁴	As stated in the prospectus.

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Schwab Small-Cap Index Fund

Performance and Fund Factsas of April 30, 2019

Statistics¹

Number of Holdings	1,999
Weighted Average Market Cap (millions)	$2,508
Price/Earnings Ratio (P/E)	18.1
Price/Book Ratio (P/B)	2.1
Portfolio Turnover Rate	3%²

Sector Weightings % of Investments³

Top Equity Holdings % of Net Assets⁴

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	Excludes derivatives.
²	Not annualized.
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
⁴	This list is not a recommendation of any security by the investment adviser.

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Schwab Total Stock Market Index Fund

Average Annual Total Returns^1,2

Fund and Inception Date	6 Months	1 Year	5 Years	10 Years
Fund: Schwab Total Stock Market Index Fund (6/1/99)	9.66%	12.57%	11.10%	15.22%
Dow Jones U.S. Total Stock Market Index^SM	9.68%	12.58%	11.14%	15.30%
Fund Category: Morningstar Large Blend³	9.02%	10.88%	9.71%	13.89%
Fund Expense Ratio⁴: 0.03%

For index definitions, please see the Glossary.

Index ownership – “Standard & Poor’s^®” and “S&P^®” are registered trademarks of Standard & Poor’s Financial Services LLC (S&P), and “Dow Jones^®” is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones) and have been licensed for use by S& P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by CSIM. The “Dow Jones U.S. Total Stock Market Index^SM” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab Total Stock Market Index Fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in the fund.

¹	Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
²	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.
³	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date.
⁴	As stated in the prospectus.

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Schwab Total Stock Market Index Fund

Performance and Fund Factsas of April 30, 2019

Statistics¹

Number of Holdings	3,068
Weighted Average Market Cap (millions)	$206,441
Price/Earnings Ratio (P/E)	20.1
Price/Book Ratio (P/B)	3.1
Portfolio Turnover Rate	1%²

Sector Weightings % of Investments³

Top Equity Holdings % of Net Assets⁴

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S& P and MSCI.

¹	Excludes derivatives.
²	Not annualized.
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
⁴	This list is not a recommendation of any security by the investment adviser.

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Schwab U.S. Large-Cap Growth Index Fund

Average Annual Returns¹

Fund and Inception Date	6 Months	1 Year	Since Inception
Fund: Schwab U.S. Large-Cap Growth Index Fund (12/20/17)	12.05%	17.34%	13.41%
Russell 1000^® Growth Index	12.09%	17.43%	13.49%
Fund Category: Morningstar Large Growth²	12.15%	14.77%	N/A
Fund Expense Ratio³: 0.035%

For index definitions, please see the Glossary.

Index ownership – The Russell 1000^® Growth Index is a registered mark of the Frank Russell Company (Russell) and has been licensed for use by the Schwab U.S. Large-Cap Growth Index Fund. The Schwab U.S. Large-Cap Growth Index Fund is not sponsored, endorsed, sold or promoted by Russell and Russell makes no representation regarding the advisability of investing in the fund.

¹	Performance does 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.

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Schwab U.S. Large-Cap Growth Index Fund

Performance and Fund Factsas of April 30, 2019

Statistics¹

Number of Holdings	547
Weighted Average Market Cap (millions)	$314,034
Price/Earnings Ratio (P/E)	24.2
Price/Book Ratio (P/B)	7.0
Portfolio Turnover Rate	28%²

Sector Weightings % of Investments³

Top Equity Holdings % of Net Assets⁴

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S& P and MSCI.

¹	Excludes derivatives.
²	Not annualized.
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
⁴	This list is not a recommendation of any security by the investment adviser.

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Schwab U.S. Large-Cap Value Index Fund

Average Annual Returns¹

Fund and Inception Date	6 Months	1 Year	Since Inception
Fund: Schwab U.S. Large-Cap Value Index Fund (12/20/17)	7.80%	8.90%	4.72%
Russell 1000^® Value Index	7.90%	9.06%	4.83%
Fund Category: Morningstar Large Value²	6.85%	7.41%	N/A
Fund Expense Ratio³: 0.035%

For index definitions, please see the Glossary.

Index ownership – The Russell 1000^® Value Index is a registered mark of the Frank Russell Company (Russell) and has been licensed for use by the Schwab U.S. Large-Cap Value Index Fund. The Schwab U.S. Large-Cap Value Index Fund is not sponsored, endorsed, sold or promoted by Russell and Russell makes no representation regarding the advisability of investing in the fund.

¹	Performance does 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.

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Schwab U.S. Large-Cap Value Index Fund

Performance and Fund Factsas of April 30, 2019

Statistics¹

Number of Holdings	722
Weighted Average Market Cap (millions)	$130,306
Price/Earnings Ratio (P/E)	17.3
Price/Book Ratio (P/B)	2.0
Portfolio Turnover Rate	6%²

Sector Weightings % of Investments³

Top Equity Holdings % of Net Assets⁴

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S& P and MSCI.

¹	Excludes derivatives.
²	Not annualized.
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
⁴	This list is not a recommendation of any security by the investment adviser.

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Schwab U.S. Mid-Cap Index Fund

Average Annual Returns¹

Fund and Inception Date	6 Months	1 Year	Since Inception
Fund: Schwab U.S. Mid-Cap Index Fund (12/20/17)	11.59%	10.58%	7.49%
Russell Midcap^® Index	11.65%	10.69%	7.57%
Fund Category: Morningstar Mid-Cap Blend²	8.39%	6.25%	N/A
Fund Expense Ratio³: 0.04%

For index definitions, please see the Glossary.

Index ownership – The Russell Midcap^® Index is a registered mark of the Frank Russell Company (Russell) and has been licensed for use by the Schwab U.S. Mid-Cap Index Fund. The Schwab U.S. Mid-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.

¹	Performance does 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.

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Schwab U.S. Mid-Cap Index Fund

Performance and Fund Factsas of April 30, 2019

Statistics¹

Number of Holdings	784
Weighted Average Market Cap (millions)	$16,664
Price/Earnings Ratio (P/E)	20.5
Price/Book Ratio (P/B)	2.7
Portfolio Turnover Rate	12%²

Sector Weightings % of Investments³

Top Equity Holdings % of Net Assets⁴

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S& P and MSCI.

¹	Excludes derivatives.
²	Not annualized.
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
⁴	This list is not a recommendation of any security by the investment adviser.

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Schwab International Index Fund

Average Annual Total Returns^1,2

Fund and Inception Date	6 Months	1 Year	5 Years	10 Years
Fund: Schwab International Index Fund (5/19/97)	8.01%	-2.46%	2.61%	8.02%
MSCI EAFE^® Index (Net)³	7.45%	-3.22%	2.60%	7.95%
International Spliced Index	7.45%	-3.22%	2.60%	7.99%
Fund Category: Morningstar Foreign Large Blend⁴	7.76%	-3.71%	2.52%	7.56%
Fund Expense Ratio⁵: 0.06%

The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.

For index definitions, please see the Glossary.

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	Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
²	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.
³	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
⁴	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date.
⁵	As stated in the prospectus.

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Schwab International Index Fund

Performance and Fund Factsas of April 30, 2019

Statistics¹

Number of Holdings	935
Weighted Average Market Cap (millions)	$63,025
Price/Earnings Ratio (P/E)	15.3
Price/Book Ratio (P/B)	1.6
Portfolio Turnover Rate	3%²

Sector Weightings % of Investments¹

Top Equity Holdings % of Net Assets³

Top Country Weightings % of Investments⁴

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	Excludes derivatives.
²	Not annualized.
³	This list is not a recommendation of any security by the investment adviser.
⁴	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.

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Schwab Equity Index Funds

Fund Expenses(Unaudited)

Examples for a $1,000 Investment

As a fund shareholder, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees.

The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning November 1, 2018 and held through April 30, 2019.

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

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

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs. Therefore, the hypothetical return lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Expense Ratio (Annualized)¹	Beginning Account Value at 11/1/18	Ending Account Value (Net of Expenses) at 4/30/19	Expenses Paid During Period 11/1/18-4/30/19²
Schwab S&P 500 Index Fund
Actual Return	0.02%	$1,000.00	$1,097.70	$0.10
Hypothetical 5% Return	0.02%	$1,000.00	$1,024.70	$0.10
Schwab 1000 Index Fund
Actual Return	0.05%	$1,000.00	$1,099.90	$0.26
Hypothetical 5% Return	0.05%	$1,000.00	$1,024.55	$0.25
Schwab Small-Cap Index Fund
Actual Return	0.04%	$1,000.00	$1,060.80	$0.20
Hypothetical 5% Return	0.04%	$1,000.00	$1,024.60	$0.20
Schwab Total Stock Market Index Fund
Actual Return	0.03%	$1,000.00	$1,096.60	$0.16
Hypothetical 5% Return	0.03%	$1,000.00	$1,024.65	$0.15
Schwab U.S. Large-Cap Growth Index Fund
Actual Return	0.036%	$1,000.00	$1,120.50	$0.19
Hypothetical 5% Return	0.036%	$1,000.00	$1,024.62	$0.18
Schwab U.S. Large-Cap Value Index Fund
Actual Return	0.036%	$1,000.00	$1,078.00	$0.19
Hypothetical 5% Return	0.036%	$1,000.00	$1,024.62	$0.18
Schwab U.S. Mid-Cap Index Fund
Actual Return	0.04%	$1,000.00	$1,115.90	$0.21
Hypothetical 5% Return	0.04%	$1,000.00	$1,024.60	$0.20
Schwab International Index Fund
Actual Return	0.06%	$1,000.00	$1,080.10	$0.31
Hypothetical 5% Return	0.06%	$1,000.00	$1,024.50	$0.30

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.

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Schwab S&P 500 Index Fund

Financial Statements

Financial Highlights

	11/1/18– 4/30/19*	11/1/17– 10/31/18	11/1/16– 10/31/17	11/1/15– 10/31/16	11/1/14– 10/31/15	11/1/13– 10/31/14
Per-Share Data
Net asset value at beginning of period	$42.41	$40.23	$33.38	$33.00	$31.99	$27.78
Income (loss) from investment operations:
Net investment income (loss)	0.49¹	0.80¹	0.74¹	0.69¹	0.67¹	0.56
Net realized and unrealized gains (losses)	3.42	2.12	6.99	0.69	0.92	4.13
Total from investment operations	3.91	2.92	7.73	1.38	1.59	4.69
Less distributions:
Distributions from net investment income	(0.84)	(0.72)	(0.69)	(0.68)	(0.58)	(0.48)
Distributions from net realized gains	(0.18)	(0.02)	(0.19)	(0.32)	—	—
Total distributions	(1.02)	(0.74)	(0.88)	(1.00)	(0.58)	(0.48)
Net asset value at end of period	$45.30	$42.41	$40.23	$33.38	$33.00	$31.99
Total return	9.77%²	7.29%	23.57%	4.40%	5.10%	17.16%
Ratios/Supplemental Data
Ratios to average net assets:
Total expenses	0.02%³^,⁴	0.03%	0.05%⁵	0.09%	0.09%	0.09%
Net operating expenses	N/A	N/A⁶	0.05%⁵	0.09%	0.09%	0.09%
Net investment income (loss)	2.34%³	1.88%	2.01%	2.12%	2.07%	1.89%
Portfolio turnover rate	1%²	2%	2%	2%	2%	2%
Net assets, end of period (x 1,000,000)	$38,483	$34,410	$29,999	$22,675	$21,587	$20,473

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Not annualized.

Annualized.

⁴

Effective December 20, 2018, the annual operating expense ratio was reduced to 0.02%. The ratio presented for period ended 4/30/19 is a blended ratio. (See financial note 4)

⁵

Effective March 1, 2017, the annual operating expense ratio was reduced. The ratio presented for period ended 10/31/17 is a blended ratio.

⁶

Effective March 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated.

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Table of Contents

Schwab S&P 500 Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited)

This section shows the fund’s 50 largest portfolio holdings in unaffiliated issuers, 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 1-877-824-5615. This complete schedule, filed on the fund’s N-CSR(S), is also available on the U.S. Securities and Exchange Commission (SEC)’s website atwww.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. Effective March 31, 2019, Form N-PORT Part F has replaced Form N-Q. The fund also makes available its complete schedule of portfolio holdings 15-20 days after the end of the month on the fund’s website atwww.schwabfunds.com/schwabfunds_prospectus.

Security	Number of Shares	% of Net Assets	Value ($)
Common Stock99.8% of net assets

Automobiles & Components 0.5%
Other Securities		0.5	201,510,260

Banks 5.7%
Bank of America Corp.	14,043,116	1.1	429,438,487
Citigroup, Inc.	3,676,744	0.7	259,945,801
JPMorgan Chase & Co.	5,118,002	1.5	593,944,132
Wells Fargo & Co.	6,399,992	0.8	309,823,613
Other Securities		1.6	594,406,682
		5.7	2,187,558,715

Capital Goods 6.7%
Honeywell International, Inc.	1,140,223	0.5	197,976,919
The Boeing Co.	821,372	0.8	310,223,991
United Technologies Corp.	1,266,497	0.5	180,615,137
Other Securities		4.9	1,878,130,290
		6.7	2,566,946,337

Commercial & Professional Services 0.7%
Other Securities		0.7	270,051,000

Consumer Durables & Apparel 1.1%
NIKE, Inc., Class B	1,968,908	0.4	172,929,190
Other Securities		0.7	266,714,546
		1.1	439,643,736

Consumer Services 1.9%
McDonald's Corp.	1,196,780	0.6	236,447,825
Other Securities		1.3	487,187,547
		1.9	723,635,372

Diversified Financials 5.2%
Berkshire Hathaway, Inc., Class B *	3,039,609	1.7	658,713,666
The Charles Schwab Corp.(a)	1,843,741	0.2	84,406,463
Other Securities		3.3	1,243,506,714
		5.2	1,986,626,843

Energy 5.2%
Chevron Corp.	2,969,586	0.9	356,528,495
Exxon Mobil Corp.	6,622,029	1.4	531,616,488
Other Securities		2.9	1,115,062,310
		5.2	2,003,207,293

Security	Number of Shares	% of Net Assets	Value ($)
Food & Staples Retailing 1.4%
Walmart, Inc.	2,225,530	0.6	228,873,505
Other Securities		0.8	319,999,031
		1.4	548,872,536

Food, Beverage & Tobacco 3.9%
PepsiCo, Inc.	2,195,501	0.7	281,133,903
Philip Morris International, Inc.	2,429,831	0.5	210,326,171
The Coca-Cola Co.	6,014,582	0.8	295,075,393
Other Securities		1.9	722,804,081
		3.9	1,509,339,548

Health Care Equipment & Services 5.9%
Abbott Laboratories	2,746,714	0.6	218,528,566
Medtronic plc	2,097,556	0.5	186,283,948
UnitedHealth Group, Inc.	1,500,357	0.9	349,688,206
Other Securities		3.9	1,526,977,013
		5.9	2,281,477,733

Household & Personal Products 1.9%
The Procter & Gamble Co.	3,910,382	1.1	416,377,475
Other Securities		0.8	293,855,859
		1.9	710,233,334

Insurance 2.4%
Other Securities		2.4	918,520,414

Materials 2.7%
Other Securities		2.7	1,023,080,632

Media & Entertainment 8.4%
Alphabet, Inc., Class A *	468,088	1.5	561,218,789
Alphabet, Inc., Class C *	480,360	1.5	570,898,253
Comcast Corp., Class A	7,060,172	0.8	307,329,287
Facebook, Inc., Class A *	3,729,248	1.9	721,236,563
Netflix, Inc. *	682,709	0.7	252,970,993
The Walt Disney Co.	2,729,758	1.0	373,894,953
Other Securities		1.0	436,634,095
		8.4	3,224,182,933

Pharmaceuticals, Biotechnology & Life Sciences 7.7%
AbbVie, Inc.	2,306,422	0.5	183,106,843
Amgen, Inc.	973,104	0.5	174,497,009
Johnson & Johnson	4,162,672	1.5	587,769,286
Merck & Co., Inc.	4,034,058	0.8	317,520,705
Pfizer, Inc.	8,678,781	0.9	352,445,296

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Table of Contents

Schwab S&P 500 Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	% of Net Assets	Value ($)
Thermo Fisher Scientific, Inc.	629,668	0.5	174,701,387
Other Securities		3.0	1,161,331,379
		7.7	2,951,371,905

Real Estate 3.0%
Other Securities		3.0	1,134,547,343

Retailing 6.7%
Amazon.com, Inc. *	645,033	3.2	1,242,668,975
The Home Depot, Inc.	1,766,404	0.9	359,816,495
Other Securities		2.6	991,406,342
		6.7	2,593,891,812

Semiconductors & Semiconductor Equipment 4.0%
Broadcom, Inc.	619,181	0.5	197,147,230
Intel Corp.	7,029,443	0.9	358,782,771
Other Securities		2.6	982,574,067
		4.0	1,538,504,068

Software & Services 11.8%
Accenture plc, Class A	997,421	0.5	182,198,894
Adobe, Inc. *	762,452	0.6	220,539,241
International Business Machines Corp.	1,391,153	0.5	195,137,031
Mastercard, Inc., Class A	1,410,982	0.9	358,728,064
Microsoft Corp.	11,992,440	4.1	1,566,212,664
Oracle Corp.	3,982,164	0.6	220,333,134
PayPal Holdings, Inc. *	1,834,223	0.5	206,845,328
salesforce.com, Inc. *	1,196,061	0.5	197,768,686
Visa, Inc., Class A	2,735,659	1.2	449,824,409
Other Securities		2.4	958,298,263
		11.8	4,555,885,714

Technology Hardware & Equipment 5.8%
Apple, Inc.	7,002,623	3.7	1,405,216,358
Cisco Systems, Inc.	6,879,205	1.0	384,891,520
Other Securities		1.1	438,227,199
		5.8	2,228,335,077

Telecommunication Services 1.9%
AT&T, Inc.	11,388,099	0.9	352,575,545
Verizon Communications, Inc.	6,458,401	1.0	369,355,953
Other Securities		0.0	16,946,743
		1.9	738,878,241

Security	Number of Shares	% of Net Assets	Value ($)
Transportation 2.1%
Union Pacific Corp.	1,129,897	0.5	200,036,965
Other Securities		1.6	602,491,155
		2.1	802,528,120

Utilities 3.2%
Other Securities		3.2	1,240,503,343
Total Common Stock
(Cost $19,402,366,081)			38,379,332,309

Other Investment Company0.0% of net assets

Securities Lending Collateral 0.0%
Other Securities		0.0	7,417,454
Total Other Investment Company
(Cost $7,417,454)			7,417,454
Security Rate, Maturity Date	Face Amount ($)	% of Net Assets	Value ($)
Short-Term Investment0.1% of net assets

Time Deposit 0.1%
Other Securities		0.1	42,275,468
Total Short-Term Investment
(Cost $42,275,468)			42,275,468

	Number of Contracts	Notional Amount ($)	Current Value/ Unrealized Appreciation ($)
Futures Contracts
Long
S&P 500 Index, e-mini, expires 06/21/19	695	102,460,375	1,308,493

The following footnotes may not be applicable to the Condensed Portfolio Holdings. Please refer to the complete schedule of portfolio holdings.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund’s investment adviser.
(b)	All or a portion of this security is on loan. Securities on loan were valued at $7,171,117.
(c)	The rate shown is the 7-day yield.
(d)	The rate shown is the current daily overnight rate.

The fund owns shares of an affiliate, The Charles Schwab Corp., since that company is included in its index. Below is the summary of investment activities involving The Charles Schwab Corp. shares owned by the fund during the period ended April 30, 2019:

	Balance of Shares Held at 10/31/18	Gross Purchases	Gross Sales	Balance of Shares Held at 04/30/19	Market Value at 04/30/19	Net Change in Unrealized Appreciation (depreciation)	Realized Gains (Losses)	Dividends Received
The Charles Schwab Corp.	1,787,189	67,152	(10,600)	1,843,741	$84,406,463	($596,859)	($121,720)	$545,558

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Table of Contents

Schwab S&P 500 Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2019 and reflects the complete schedule of portfolio holdings (see financial note 2(a) for additional information):

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Assets
Common Stock¹	$38,379,332,309	$—	$—	$38,379,332,309
Other Investment Company¹	7,417,454	—	—	7,417,454
Short-Term Investment¹	—	42,275,468	—	42,275,468
Futures Contracts²	1,308,493	—	—	1,308,493
Total	$38,388,058,256	$42,275,468	$—	$38,430,333,724

¹	As categorized in the complete schedule of Portfolio Holdings.
²	Futures contracts are valued at unrealized appreciation or depreciation.

Fund investments in underlying mutual funds are classified as Level 1, without consideration to the classification level of the investments held by the underlying mutual funds, which could be Level 1, Level 2 or Level 3.

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See financial notes

Table of Contents

Schwab S&P 500 Index Fund

Statement of Assets and Liabilities

As of April 30, 2019; unaudited

Assets
Investment in affiliated issuer, at value (cost $39,938,292)		$84,406,463
Investments in unaffiliated issuers, at value (cost $19,404,703,257) including securities on loan of $7,171,117		38,337,201,314
Collateral invested for securities on loan, at value (cost $7,417,454)		7,417,454
Deposit with broker for futures contracts		5,229,000
Receivables:
Fund shares sold		57,163,020
Dividends		33,104,326
Variation margin on futures contracts		194,600
Income from securities on loan		7,355
Interest	+	2,102
Total assets		38,524,725,634
Liabilities
Collateral held for securities on loan		7,417,454
Payables:
Investment adviser fees		622,075
Fund shares redeemed	+	33,277,708
Total liabilities		41,317,237
Net Assets
Total assets		38,524,725,634
Total liabilities	–	41,317,237
Net assets		$38,483,408,397
Net Assets by Source
Capital received from investors		19,365,084,816
Total distributable earnings		19,118,323,581

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$38,483,408,397		849,605,399		$45.30

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Table of Contents

Schwab S&P 500 Index Fund

Statement of Operations

For the period November 1, 2018 through April 30, 2019; unaudited

Investment Income
Dividends received from affiliated issuer		$545,558
Dividends received from unaffiliated issuers		409,838,989
Interest		880,761
Securities on loan, net	+	551,528
Total investment income		411,816,836
Expenses
Investment adviser fees		3,947,228
Total expenses	–	3,947,228
Net investment income		407,869,608
Realized and Unrealized Gains (Losses)
Net realized losses on affiliated issuer		(121,720)
Net realized gains on unaffiliated issuers		9,873,262
Net realized gains on futures contracts	+	3,674,694
Net realized gains		13,426,236
Net change in unrealized appreciation (depreciation) on affiliated issuer		(596,859)
Net change in unrealized appreciation (depreciation) on unaffiliated issuers		2,990,024,122
Net change in unrealized appreciation (depreciation) on futures contracts	+	4,256,076
Net change in unrealized appreciation (depreciation)	+	2,993,683,339
Net realized and unrealized gains		3,007,109,575
Increase in net assets resulting from operations		$3,414,979,183

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Table of Contents

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
	11/1/18-4/30/19		11/1/17-10/31/18
Net investment income		$407,869,608	$629,555,318
Net realized gains		13,426,236	81,971,730
Net change in unrealized appreciation (depreciation)	+	2,993,683,339	1,493,538,632
Increase in net assets from operations		3,414,979,183	2,205,065,680
Distributions to Shareholders
Total distributions		($835,129,475)	($554,866,625)

Transactions in Fund Shares
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	VALUE	SHARES	VALUE
Shares sold		103,791,477	$4,322,028,442	185,822,593	$7,893,283,318
Shares reinvested		18,928,942	700,548,834	11,333,723	469,442,817
Shares redeemed	+	(84,423,461)	(3,528,746,073)	(131,541,240)	(5,601,858,204)
Net transactions in fund shares		38,296,958	$1,493,831,203	65,615,076	$2,760,867,931
Shares Outstanding and Net Assets
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		811,308,441	$34,409,727,486	745,693,365	$29,998,660,500
Total increase	+	38,296,958	4,073,680,911	65,615,076	4,411,066,986
End of period		849,605,399	$38,483,408,397	811,308,441	$34,409,727,486

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Table of Contents

Schwab 1000 Index Fund

Financial Statements

Financial Highlights

	11/1/18– 4/30/19*	11/1/17– 10/31/18	11/1/16– 10/31/17	11/1/15– 10/31/16	11/1/14– 10/31/15	11/1/13– 10/31/14
Per-Share Data
Net asset value at beginning of period	$64.19	$62.61	$52.40	$53.67	$53.63	$48.31
Income (loss) from investment operations:
Net investment income (loss)¹	0.70	1.18	1.08	0.95	0.94	0.83
Net realized and unrealized gains (losses)	4.88	3.05	10.96	0.92	1.40	6.74
Total from investment operations	5.58	4.23	12.04	1.87	2.34	7.57
Less distributions:
Distributions from net investment income	(1.28)	(1.10)	(0.97)	(0.96)	(0.86)	(0.75)
Distributions from net realized gains	(2.34)	(1.55)	(0.86)	(2.18)	(1.44)	(1.50)
Total distributions	(3.62)	(2.65)	(1.83)	(3.14)	(2.30)	(2.25)
Net asset value at end of period	$66.15	$64.19	$62.61	$52.40	$53.67	$53.63
Total return	9.99%²	6.84%	23.52%	3.87%	4.66%	16.36%
Ratios/Supplemental Data
Ratios to average net assets:
Total expenses	0.05%³	0.05%	0.14%⁴	0.33%	0.33%	0.33%
Net operating expenses	N/A	N/A⁵	0.12%⁴	0.29%	0.29%	0.29%
Net investment income (loss)	2.28%³	1.82%	1.87%	1.86%	1.77%	1.64%
Portfolio turnover rate	2%²	4%	5%	3%	4%	4%
Net assets, end of period (x 1,000,000)	$8,543	$7,909	$7,681	$6,432	$6,550	$6,586

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Not annualized.

Annualized.

⁴

Effective March 1, 2017, the annual operating expense ratio was reduced. The ratio presented for period ended 10/31/17 is a blended ratio.

⁵

Effective March 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated.

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Table of Contents

Schwab 1000 Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited)

Security	Number of Shares	% of Net Assets	Value ($)
Common Stock99.8% of net assets

Automobiles & Components 0.7%
Other Securities		0.7	58,888,031

Banks 5.7%
Bank of America Corp.	2,771,749	1.0	84,760,084
Citigroup, Inc.	725,617	0.6	51,301,122
JPMorgan Chase & Co.	1,010,255	1.4	117,240,093
Wells Fargo & Co.	1,263,346	0.7	61,158,580
Other Securities		2.0	168,695,340
		5.7	483,155,219

Capital Goods 6.8%
Honeywell International, Inc.	224,714	0.5	39,017,092
The Boeing Co.	162,141	0.7	61,239,034
United Technologies Corp.	250,083	0.4	35,664,337
Other Securities		5.2	447,196,087
		6.8	583,116,550

Commercial & Professional Services 0.9%
Other Securities		0.9	72,678,666

Consumer Durables & Apparel 1.2%
Other Securities		1.2	105,571,077

Consumer Services 2.2%
McDonald's Corp.	236,030	0.5	46,632,447
Other Securities		1.7	139,415,273
		2.2	186,047,720

Diversified Financials 5.2%
Berkshire Hathaway, Inc., Class B *	600,015	1.5	130,029,251
The Charles Schwab Corp.(b)	364,332	0.2	16,679,119
Other Securities		3.5	299,253,631
		5.2	445,962,001

Energy 4.9%
Chevron Corp.	586,253	0.8	70,385,535
Exxon Mobil Corp.	1,307,315	1.2	104,951,248
Other Securities		2.9	240,799,646
		4.9	416,136,429

Security	Number of Shares	% of Net Assets	Value ($)
Food & Staples Retailing 1.3%
Walmart, Inc.	439,297	0.5	45,177,303
Other Securities		0.8	69,324,236
		1.3	114,501,539

Food, Beverage & Tobacco 3.6%
PepsiCo, Inc.	433,344	0.6	55,489,699
Philip Morris International, Inc.	479,663	0.5	41,519,629
The Coca-Cola Co.	1,187,049	0.7	58,236,624
Other Securities		1.8	156,118,777
		3.6	311,364,729

Health Care Equipment & Services 5.8%
Abbott Laboratories	542,024	0.5	43,123,429
Medtronic plc	413,806	0.4	36,750,111
UnitedHealth Group, Inc.	296,027	0.8	68,995,013
Other Securities		4.1	345,150,478
		5.8	494,019,031

Household & Personal Products 1.7%
The Procter & Gamble Co.	771,698	1.0	82,170,403
Other Securities		0.7	60,694,552
		1.7	142,864,955

Insurance 2.7%
Other Securities		2.7	226,887,628

Materials 2.8%
Other Securities		2.8	241,404,428

Media & Entertainment 8.0%
Alphabet, Inc., Class A *	92,381	1.3	110,761,124
Alphabet, Inc., Class C *	94,845	1.3	112,721,386
Comcast Corp., Class A	1,393,728	0.7	60,668,980
Facebook, Inc., Class A *	736,126	1.7	142,366,768
Netflix, Inc. *	134,738	0.6	49,925,819
The Walt Disney Co.	538,897	0.9	73,812,722
Other Securities		1.5	131,869,139
		8.0	682,125,938

Pharmaceuticals, Biotechnology & Life Sciences 7.4%
AbbVie, Inc.	455,199	0.4	36,138,249
Amgen, Inc.	192,031	0.4	34,434,999
Johnson & Johnson	821,870	1.4	116,048,044
Merck & Co., Inc.	796,409	0.7	62,685,352
Pfizer, Inc.	1,712,805	0.8	69,557,011

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Table of Contents

Schwab 1000 Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	% of Net Assets	Value ($)
Thermo Fisher Scientific, Inc.	124,309	0.4	34,489,532
Other Securities		3.3	281,563,599
		7.4	634,916,786

Real Estate 3.7%
Other Securities		3.7	313,289,243

Retailing 6.3%
Amazon.com, Inc. *	127,321	2.9	245,286,453
The Home Depot, Inc.	348,495	0.8	70,988,431
Other Securities		2.6	219,835,410
		6.3	536,110,294

Semiconductors & Semiconductor Equipment 3.9%
Broadcom, Inc.	122,242	0.5	38,921,853
Intel Corp.	1,387,754	0.8	70,830,964
Texas Instruments, Inc.	289,712	0.4	34,136,765
Other Securities		2.2	185,020,799
		3.9	328,910,381

Software & Services 12.4%
Accenture plc, Class A	196,694	0.4	35,930,093
Adobe, Inc. *	150,551	0.5	43,546,877
International Business Machines Corp.	274,598	0.5	38,517,861
Mastercard, Inc., Class A	278,587	0.8	70,827,959
Microsoft Corp.	2,367,484	3.6	309,193,410
Oracle Corp.	786,289	0.5	43,505,370
PayPal Holdings, Inc. *	362,112	0.5	40,835,370
salesforce.com, Inc. *	236,175	0.5	39,051,536
Visa, Inc., Class A	540,102	1.0	88,808,972
Other Securities		4.1	352,776,354
		12.4	1,062,993,802

Technology Hardware & Equipment 5.6%
Apple, Inc.	1,382,281	3.2	277,382,328
Cisco Systems, Inc.	1,358,403	0.9	76,002,648
Other Securities		1.5	124,509,033
		5.6	477,894,009

Telecommunication Services 1.8%
AT&T, Inc.	2,247,728	0.8	69,589,659
Verizon Communications, Inc.	1,275,005	0.9	72,917,536
Other Securities		0.1	14,690,659
		1.8	157,197,854

Security	Number of Shares	% of Net Assets	Value ($)
Transportation 2.0%
Union Pacific Corp.	223,089	0.5	39,495,677
Other Securities		1.5	134,360,793
		2.0	173,856,470

Utilities 3.2%
Other Securities		3.2	273,752,826
Total Common Stock
(Cost $2,208,531,503)			8,523,645,606

Other Investment Companies0.2% of net assets

Money Market Fund 0.1%
Other Securities		0.1	8,158,119

Securities Lending Collateral 0.1%
Other Securities		0.1	11,378,750
Total Other Investment Companies
(Cost $19,536,869)			19,536,869

	Number of Contracts	Notional Amount ($)	Current Value/ Unrealized Appreciation ($)
Futures Contracts
Long
S&P 500 Index, e-mini, expires 06/21/19	128	18,870,400	667,211

The following footnotes may not be applicable to the Condensed Portfolio Holdings. 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 $11,008,300.
(b)	Issuer is affiliated with the fund's investment adviser.
(c)	The rate shown is the 7-day yield.

REIT —

Real Estate Investment Trust

	Balance of Shares Held at 10/31/18	Gross Purchases	Gross Sales	Balance of Shares Held at 04/30/19	Market Value at 04/30/19	Net Change in Unrealized Appreciation (depreciation)	Realized Gains (Losses)	Dividends Received
The Charles Schwab Corp.	368,065	—	(3,733)	364,332	$16,679,119	($131,357)	($40,850)	$110,125

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab 1000 Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Assets
Common Stock¹	$8,523,645,606	$—	$—	$8,523,645,606
Other Investment Companies¹	19,536,869	—	—	19,536,869
Futures Contracts²	667,211	—	—	667,211
Total	$8,543,849,686	$—	$—	$8,543,849,686

¹	As categorized in the complete schedule of Portfolio Holdings.
²	Futures contracts are valued at unrealized appreciation or depreciation.

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Table of Contents

Schwab 1000 Index Fund

Statement of Assets and Liabilities

As of April 30, 2019; unaudited

Assets
Investment in affiliated issuer, at value (cost $2,095,208)		$16,679,119
Investments in unaffiliated issuers, at value (cost $2,214,594,414) including securities on loan of $11,008,300		8,515,124,606
Collateral invested for securities on loan, at value (cost $11,378,750)		11,378,750
Deposit with broker for futures contracts		2,754,000
Receivables:
Dividends		6,916,066
Fund shares sold		4,481,533
Variation margin on futures contracts		37,687
Income from securities on loan	+	24,116
Total assets		8,557,395,877
Liabilities
Collateral held for securities on loan		11,378,750
Payables:
Investment adviser fees		345,638
Fund shares redeemed	+	2,414,767
Total liabilities		14,139,155
Net Assets
Total assets		8,557,395,877
Total liabilities	–	14,139,155
Net assets		$8,543,256,722
Net Assets by Source
Capital received from investors		2,062,749,601
Total distributable earnings		6,480,507,121

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$8,543,256,722		129,148,990		$66.15

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Table of Contents

Schwab 1000 Index Fund

Statement of Operations

For the period November 1, 2018 through April 30, 2019; unaudited

Investment Income
Dividends received from affiliated issuer		$110,125
Dividends received from unaffiliated issuers (net of foreign withholding tax of $2,797)		90,003,020
Securities on loan, net	+	1,224,090
Total investment income		91,337,235
Expenses
Investment adviser fees		1,963,384
Total expenses	–	1,963,384
Net investment income		89,373,851
Realized and Unrealized Gains (Losses)
Net realized losses on affiliated issuer		(40,850)
Net realized gains on unaffiliated issuers		90,962,740
Net realized gains on futures contracts	+	134,941
Net realized gains		91,056,831
Net change in unrealized appreciation (depreciation) on affiliated issuer		(131,357)
Net change in unrealized appreciation (depreciation) on unaffiliated issuers		589,209,378
Net change in unrealized appreciation (depreciation) on futures contracts	+	1,160,072
Net change in unrealized appreciation (depreciation)	+	590,238,093
Net realized and unrealized gains		681,294,924
Increase in net assets resulting from operations		$770,668,775

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Table of Contents

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
	11/1/18-4/30/19		11/1/17-10/31/18
Net investment income		$89,373,851	$147,028,286
Net realized gains		91,056,831	288,201,026
Net change in unrealized appreciation (depreciation)	+	590,238,093	90,496,487
Increase in net assets from operations		770,668,775	525,725,799
Distributions to Shareholders
Total distributions		($445,433,607)	($324,267,848)

Transactions in Fund Shares
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	VALUE	SHARES	VALUE
Shares sold		5,584,560	$339,526,760	8,381,000	$542,615,615
Shares reinvested		6,798,613	365,978,493	4,263,951	268,287,801
Shares redeemed	+	(6,457,538)	(396,633,933)	(12,091,730)	(783,914,000)
Net transactions in fund shares		5,925,635	$308,871,320	553,221	$26,989,416
Shares Outstanding and Net Assets
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		123,223,355	$7,909,150,234	122,670,134	$7,680,702,867
Total increase	+	5,925,635	634,106,488	553,221	228,447,367
End of period		129,148,990	$8,543,256,722	123,223,355	$7,909,150,234

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Schwab Small-Cap Index Fund

Financial Statements

Financial Highlights

	11/1/18– 4/30/19*	11/1/17– 10/31/18	11/1/16– 10/31/17	11/1/15– 10/31/16	11/1/14– 10/31/15	11/1/13– 10/31/14
Per-Share Data
Net asset value at beginning of period	$30.48	$31.45	$25.60	$26.29	$28.13	$27.62
Income (loss) from investment operations:
Net investment income (loss)¹	0.25	0.43	0.38	0.39	0.38	0.35
Net realized and unrealized gains (losses)	1.00	0.20	6.62	0.59	(0.34)	1.76
Total from investment operations	1.25	0.63	7.00	0.98	0.04	2.11
Less distributions:
Distributions from net investment income	(0.40)	(0.39)	(0.39)	(0.36)	(0.34)	(0.31)
Distributions from net realized gains	(2.18)	(1.21)	(0.76)	(1.31)	(1.54)	(1.29)
Total distributions	(2.58)	(1.60)	(1.15)	(1.67)	(1.88)	(1.60)
Net asset value at end of period	$29.15	$30.48	$31.45	$25.60	$26.29	$28.13
Total return	6.08%²	1.93%	27.84%	4.17%	0.36%	8.08%
Ratios/Supplemental Data
Ratios to average net assets:
Total expenses	0.04%³^,⁴	0.05%	0.10%⁵	0.20%	0.20%	0.21%
Net operating expenses	N/A	N/A⁶	0.09%⁵	0.17%	0.17%	0.17%
Net investment income (loss)	1.78%³	1.33%	1.31%	1.60%	1.37%	1.27%
Portfolio turnover rate	3%²	17%	11%	17%	17%	12%
Net assets, end of period (x 1,000,000)	$4,237	$3,874	$3,531	$2,619	$2,607	$2,567

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Not annualized.

Annualized.

⁴

Effective December 20, 2018, the annual operating expense ratio was reduced to 0.04%. The ratio presented for period ended 4/30/19 is a blended ratio. (See financial note 4)

⁵

Effective March 1, 2017, the annual operating expense ratio was reduced. The ratio presented for period ended 10/31/17 is a blended ratio.

⁶

Effective March 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated.

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Table of Contents

Schwab Small-Cap Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited)

Security	Number of Shares	% of Net Assets	Value ($)
Common Stock99.7% of net assets

Automobiles & Components 1.0%
Other Securities		1.0	43,759,598

Banks 11.6%
Essent Group Ltd. *	194,579	0.2	9,232,774
IBERIABANK Corp.	112,348	0.2	8,931,666
MGIC Investment Corp. *	718,589	0.2	10,520,143
Radian Group, Inc.	438,183	0.2	10,262,246
Other Securities		10.8	453,462,847
		11.6	492,409,676

Capital Goods 9.3%
EMCOR Group, Inc.	116,059	0.2	9,765,204
Woodward, Inc.	108,411	0.3	11,805,958
Other Securities		8.8	370,777,838
		9.3	392,349,000

Commercial & Professional Services 4.1%
Insperity, Inc.	77,607	0.2	9,278,693
Other Securities		3.9	165,212,089
		4.1	174,490,782

Consumer Durables & Apparel 2.9%
Deckers Outdoor Corp. *	59,195	0.2	9,365,241
Other Securities		2.7	113,268,372
		2.9	122,633,613

Consumer Services 3.8%
Planet Fitness, Inc., Class A *	179,034	0.3	13,552,874
Other Securities		3.5	146,168,899
		3.8	159,721,773

Diversified Financials 3.3%
FirstCash, Inc.	86,398	0.2	8,439,357
Stifel Financial Corp.	140,700	0.2	8,395,569
Other Securities		2.9	124,722,550
		3.3	141,557,476

Energy 3.5%
Other Securities		3.5	150,343,377

Security	Number of Shares	% of Net Assets	Value ($)
Food & Staples Retailing 0.7%
Performance Food Group Co. *	206,049	0.2	8,437,707
Other Securities		0.5	19,360,823
		0.7	27,798,530

Food, Beverage & Tobacco 1.6%
Other Securities		1.6	67,615,362

Health Care Equipment & Services 6.2%
Haemonetics Corp. *	103,894	0.2	9,067,868
Medidata Solutions, Inc. *	117,003	0.2	10,570,051
Other Securities		5.8	243,117,933
		6.2	262,755,852

Household & Personal Products 0.5%
Other Securities		0.5	21,527,015

Insurance 2.7%
Kemper Corp.	106,753	0.2	9,594,960
Primerica, Inc.	87,259	0.3	11,368,975
Selective Insurance Group, Inc.	117,482	0.2	8,377,641
Other Securities		2.0	84,688,185
		2.7	114,029,761

Materials 3.8%
Ingevity Corp. *	85,922	0.2	9,881,889
Other Securities		3.6	151,251,209
		3.8	161,133,098

Media & Entertainment 2.6%
Nexstar Media Group, Inc., Class A	90,751	0.3	10,622,405
The New York Times Co., Class A	266,445	0.2	8,832,652
Other Securities		2.1	89,488,578
		2.6	108,943,635

Pharmaceuticals, Biotechnology & Life Sciences 8.8%
Array BioPharma, Inc. *	426,902	0.2	9,652,254
Horizon Pharma plc *	365,253	0.2	9,324,909
Other Securities		8.4	353,315,747
		8.8	372,292,910

Real Estate 7.4%
Americold Realty Trust	319,846	0.2	10,238,270
First Industrial Realty Trust, Inc.	251,905	0.2	8,884,689

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab Small-Cap Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	% of Net Assets	Value ($)
Pebblebrook Hotel Trust	262,649	0.2	8,551,851
Other Securities		6.8	287,341,593
		7.4	315,016,403

Retailing 4.4%
Etsy, Inc. *	241,963	0.4	16,342,181
Five Below, Inc. *	110,654	0.4	16,198,639
Ollie's Bargain Outlet Holdings, Inc. *	100,750	0.2	9,635,730
Other Securities		3.4	142,384,492
		4.4	184,561,042

Semiconductors & Semiconductor Equipment 2.8%
Cree, Inc. *	209,323	0.3	13,834,157
Entegris, Inc.	287,559	0.3	11,749,661
Silicon Laboratories, Inc. *	87,046	0.2	9,371,372
Other Securities		2.0	82,402,187
		2.8	117,357,377

Software & Services 8.3%
CACI International, Inc., Class A *	49,774	0.2	9,702,943
Coupa Software, Inc. *	112,873	0.3	11,663,167
HubSpot, Inc. *	74,895	0.3	13,817,378
MAXIMUS, Inc.	129,422	0.2	9,531,930
New Relic, Inc. *	91,280	0.2	9,606,307
The Trade Desk, Inc., Class A *	67,461	0.4	14,941,262
Zscaler, Inc. *	123,316	0.2	8,423,716
Other Securities		6.5	272,984,237
		8.3	350,670,940

Technology Hardware & Equipment 4.6%
Ciena Corp. *	290,425	0.3	11,140,703
Lumentum Holdings, Inc. *	153,804	0.2	9,531,234
SYNNEX Corp.	84,299	0.2	9,094,176
ViaSat, Inc. *	112,233	0.2	10,193,001
Other Securities		3.7	156,421,279
		4.6	196,380,393

Telecommunication Services 0.7%
Other Securities		0.7	29,730,377

Transportation 1.4%
Other Securities		1.4	60,395,433

Utilities 3.7%
ALLETE, Inc.	104,372	0.2	8,501,099
IDACORP, Inc.	102,229	0.2	10,122,716
New Jersey Resources Corp.	176,405	0.2	8,834,362
ONE Gas, Inc.	105,705	0.2	9,357,007
Portland General Electric Co.	181,189	0.2	9,477,997
Southwest Gas Holdings, Inc. *	107,318	0.2	8,927,784
Spire, Inc.	99,891	0.2	8,409,823
Other Securities		2.3	91,778,592
		3.7	155,409,380
Total Common Stock
(Cost $3,150,705,444)			4,222,882,803

Security	Number of Shares	% of Net Assets	Value ($)
Rights0.0% of net assets

Materials 0.0%
Other Securities		0.0	22,031

Media & Entertainment 0.0%
Other Securities		0.0	14,883

Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Other Securities		0.0	170,679
Total Rights
(Cost $31,873)			207,593

Other Investment Company1.5% of net assets

Securities Lending Collateral 1.5%
Wells Fargo Government Money Market Fund, Select Class 2.36%(c)	65,884,644	1.5	65,884,644
Total Other Investment Company
(Cost $65,884,644)			65,884,644
Security Rate, Maturity Date	Face Amount ($)	% of Net Assets	Value ($)
Short-Term Investment0.2% of net assets

Time Deposit 0.2%
Other Securities		0.2	7,559,344
Total Short-Term Investment
(Cost $7,559,344)			7,559,344

	Number of Contracts	Notional Amount ($)	Current Value/ Unrealized Appreciation ($)
Futures Contracts
Long
Russell 2000 Index, e-mini, expires 06/21/19	159	12,673,890	60,777

The following footnotes may not be applicable to the Condensed Portfolio Holdings. 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 $63,175,245.
(b)	Fair-valued by management using significant unobservable inputs in accordance with procedures approved by fund’s Board of Trustees.
(c)	The rate shown is the 7-day yield.
(d)	The rate shown is the current daily overnight rate.

CVR —	Contingent Value Rights
REIT —	Real Estate Investment Trust

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab Small-Cap Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Assets
Common Stock¹	$4,061,749,705	$—	$—	$4,061,749,705
Materials	161,133,098	—	—^*	161,133,098
Rights¹
Materials	—	—	22,031	22,031
Media & Entertainment	—	—	14,883	14,883
Pharmaceuticals, Biotechnology & Life Sciences	—	—	170,679^*	170,679
Other Investment Company¹	65,884,644	—	—	65,884,644
Short-Term Investment¹	—	7,559,344	—	7,559,344
Futures Contracts²	60,777	—	—	60,777
Total	$4,288,828,224	$7,559,344	$207,593	$4,296,595,161

*	Level 3 amount shown includes securities determined to have no value at April 30, 2019.
¹	As categorized in the complete schedule of Portfolio Holdings.
²	Futures contracts are valued at unrealized appreciation or depreciation.

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab Small-Cap Index Fund

Statement of Assets and Liabilities

As of April 30, 2019; unaudited

Assets
Investments in unaffiliated issuers, at value (cost $3,158,296,661) including securities on loan of $63,175,245		$4,230,649,740
Collateral invested for securities on loan, at value (cost $65,884,644)		65,884,644
Deposit with broker for futures contracts		1,760,800
Receivables:
Fund shares sold		6,842,247
Dividends		1,049,702
Income from securities on loan		280,811
Foreign tax reclaims		1,110
Interest	+	352
Total assets		4,306,469,406
Liabilities
Collateral held for securities on loan		65,884,644
Payables:
Investments bought		546,927
Investment adviser fees		137,614
Fund shares redeemed		2,958,260
Variation margin on futures contracts	+	59,338
Total liabilities		69,586,783
Net Assets
Total assets		4,306,469,406
Total liabilities	–	69,586,783
Net assets		$4,236,882,623
Net Assets by Source
Capital received from investors		3,160,077,486
Total distributable earnings		1,076,805,137

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$4,236,882,623		145,335,328		$29.15

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab Small-Cap Index Fund

Statement of Operations

For the period November 1, 2018 through April 30, 2019; unaudited

Investment Income
Dividends (net of foreign withholding tax of $9,634)		$33,498,750
Interest		137,472
Securities on loan, net	+	1,840,527
Total investment income		35,476,749
Expenses
Investment adviser fees		832,448
Total expenses	–	832,448
Net investment income		34,644,301
Realized and Unrealized Gains (Losses)
Net realized gains on investments		12,347,931
Net realized losses on futures contracts	+	(1,260,818)
Net realized gains		11,087,113
Net change in unrealized appreciation (depreciation) on investments		196,302,913
Net change in unrealized appreciation (depreciation) on futures contracts	+	325,203
Net change in unrealized appreciation (depreciation)	+	196,628,116
Net realized and unrealized gains		207,715,229
Increase in net assets resulting from operations		$242,359,530

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

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
	11/1/18-4/30/19		11/1/17-10/31/18
Net investment income		$34,644,301	$52,431,528
Net realized gains		11,087,113	264,151,519
Net change in unrealized appreciation (depreciation)	+	196,628,116	(264,082,231)
Increase in net assets from operations		242,359,530	52,500,816
Distributions to Shareholders
Total distributions		($331,678,196)	($181,272,871)

Transactions in Fund Shares
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	VALUE	SHARES	VALUE
Shares sold		21,266,802	$585,101,277	31,415,062	$1,012,294,913
Shares reinvested		12,063,839	284,224,067	5,063,226	156,403,042
Shares redeemed	+	(15,078,476)	(416,933,668)	(21,668,855)	(697,115,758)
Net transactions in fund shares		18,252,165	$452,391,676	14,809,433	$471,582,197
Shares Outstanding and Net Assets
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		127,083,163	$3,873,809,613	112,273,730	$3,530,999,471
Total increase	+	18,252,165	363,073,010	14,809,433	342,810,142
End of period		145,335,328	$4,236,882,623	127,083,163	$3,873,809,613

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab Total Stock Market Index Fund

Financial Statements

Financial Highlights

	11/1/18– 4/30/19*	11/1/17– 10/31/18	11/1/16– 10/31/17	11/1/15– 10/31/16	11/1/14– 10/31/15	11/1/13– 10/31/14
Per-Share Data
Net asset value at beginning of period	$48.38	$46.25	$38.19	$37.69	$36.96	$32.53
Income (loss) from investment operations:
Net investment income (loss)	0.53¹	0.88¹	0.80¹	0.75¹	0.72¹	0.60
Net realized and unrealized gains (losses)	3.89	2.12	8.19	0.75	0.83	4.49
Total from investment operations	4.42	3.00	8.99	1.50	1.55	5.09
Less distributions:
Distributions from net investment income	(0.90)	(0.76)	(0.74)	(0.70)	(0.61)	(0.51)
Distributions from net realized gains	(0.23)	(0.11)	(0.19)	(0.30)	(0.21)	(0.15)
Total distributions	(1.13)	(0.87)	(0.93)	(1.00)	(0.82)	(0.66)
Net asset value at end of period	$51.67	$48.38	$46.25	$38.19	$37.69	$36.96
Total return	9.66%²	6.51%	23.89%	4.19%	4.36%	15.93%
Ratios/Supplemental Data
Ratios to average net assets:
Total expenses	0.03%³	0.03%	0.05%⁴	0.10%	0.11%	0.10%
Net operating expenses	N/A	N/A⁵	0.05%⁴	0.09%	0.09%	0.09%
Net investment income (loss)	2.25%³	1.80%	1.89%	2.03%	1.92%	1.79%
Portfolio turnover rate	1%²	4%	2%	1%	2%	1%
Net assets, end of period (x 1,000,000)	$9,746	$8,410	$6,720	$4,850	$4,477	$4,049

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Not annualized.

Annualized.

⁴

Effective March 1, 2017, the annual operating expense ratio was reduced. The ratio presented for period ended 10/31/17 is a blended ratio.

⁵

Effective March 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated.

₄₆

Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab Total Stock Market Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited)

Security	Number of Shares	% of Net Assets	Value ($)
Common Stock99.4% of net assets

Automobiles & Components 0.8%
Other Securities		0.8	72,821,955

Banks 6.0%
Bank of America Corp.	2,944,448	0.9	90,041,220
Citigroup, Inc.	770,835	0.6	54,498,035
JPMorgan Chase & Co.	1,073,256	1.3	124,551,359
Wells Fargo & Co.	1,341,700	0.7	64,951,697
Other Securities		2.5	246,758,224
		6.0	580,800,535

Capital Goods 7.0%
Honeywell International, Inc.	238,585	0.4	41,425,514
The Boeing Co.	172,404	0.7	65,115,267
United Technologies Corp.	266,092	0.4	37,947,380
Other Securities		5.5	540,000,066
		7.0	684,488,227

Commercial & Professional Services 1.1%
Other Securities		1.1	102,881,421

Consumer Durables & Apparel 1.4%
NIKE, Inc., Class B	413,420	0.4	36,310,679
Other Securities		1.0	96,169,871
		1.4	132,480,550

Consumer Services 2.3%
McDonald's Corp.	250,707	0.5	49,532,182
Other Securities		1.8	171,034,330
		2.3	220,566,512

Diversified Financials 5.1%
Berkshire Hathaway, Inc., Class B *	637,460	1.4	138,143,957
The Charles Schwab Corp.(b)	387,915	0.2	17,758,749
Other Securities		3.5	345,113,173
		5.1	501,015,879

Energy 4.9%
Chevron Corp.	622,989	0.8	74,796,059
Exxon Mobil Corp.	1,389,276	1.1	111,531,077
Other Securities		3.0	287,517,448
		4.9	473,844,584

Security	Number of Shares	% of Net Assets	Value ($)
Food & Staples Retailing 1.3%
Walmart, Inc.	466,564	0.5	47,981,442
Other Securities		0.8	76,611,072
		1.3	124,592,514

Food, Beverage & Tobacco 3.5%
PepsiCo, Inc.	460,021	0.6	58,905,689
Philip Morris International, Inc.	509,741	0.5	44,123,181
The Coca-Cola Co.	1,260,231	0.6	61,826,933
Other Securities		1.8	176,752,312
		3.5	341,608,115

Health Care Equipment & Services 5.7%
Abbott Laboratories	575,999	0.5	45,826,480
Medtronic plc	439,569	0.4	39,038,123
UnitedHealth Group, Inc.	314,616	0.8	73,327,551
Other Securities		4.0	399,887,156
		5.7	558,079,310

Household & Personal Products 1.6%
The Procter & Gamble Co.	819,730	0.9	87,284,850
Other Securities		0.7	70,447,600
		1.6	157,732,450

Insurance 2.6%
Other Securities		2.6	256,581,395

Materials 2.9%
Other Securities		2.9	285,335,468

Media & Entertainment 7.6%
Alphabet, Inc., Class A *	98,205	1.2	117,743,867
Alphabet, Inc., Class C *	100,835	1.2	119,840,381
Comcast Corp., Class A	1,481,553	0.7	64,492,002
Facebook, Inc., Class A *	782,595	1.6	151,353,873
Netflix, Inc. *	143,351	0.5	53,117,279
The Walt Disney Co.	572,296	0.8	78,387,383
Other Securities		1.6	158,723,358
		7.6	743,658,143

Pharmaceuticals, Biotechnology & Life Sciences 7.5%
AbbVie, Inc.	484,619	0.4	38,473,902
Amgen, Inc.	204,566	0.4	36,682,775
Johnson & Johnson	873,698	1.3	123,366,158
Merck & Co., Inc.	847,106	0.7	66,675,713
Pfizer, Inc.	1,819,431	0.8	73,887,093

₄₇

Schwab Equity Index Funds | Semiannual Report

See financial notes

Table of Contents

Schwab Total Stock Market Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	% of Net Assets	Value ($)
Thermo Fisher Scientific, Inc.	132,019	0.4	36,628,672
Other Securities		3.5	359,375,240
		7.5	735,089,553

Real Estate 3.9%
Other Securities		3.9	380,732,576

Retailing 6.1%
Amazon.com, Inc. *	135,361	2.7	260,775,674
The Home Depot, Inc.	370,224	0.8	75,414,629
Other Securities		2.6	258,164,288
		6.1	594,354,591

Semiconductors & Semiconductor Equipment 3.7%
Broadcom, Inc.	129,924	0.4	41,367,802
Intel Corp.	1,474,424	0.8	75,254,601
Other Securities		2.5	248,353,410
		3.7	364,975,813

Software & Services 12.0%
Accenture plc, Class A	208,747	0.4	38,131,814
Adobe, Inc. *	159,988	0.5	46,276,529
International Business Machines Corp.	291,702	0.4	40,917,040
Mastercard, Inc., Class A	295,948	0.8	75,241,820
Microsoft Corp.	2,516,182	3.4	328,613,369
Oracle Corp.	834,572	0.5	46,176,869
PayPal Holdings, Inc. *	385,131	0.4	43,431,223
salesforce.com, Inc. *	251,161	0.4	41,529,471
Visa, Inc., Class A	573,550	1.0	94,308,826
Other Securities		4.2	418,760,102
		12.0	1,173,387,063

Technology Hardware & Equipment 5.5%
Apple, Inc.	1,469,437	3.0	294,871,923
Cisco Systems, Inc.	1,443,606	0.8	80,769,756
Other Securities		1.7	159,822,140
		5.5	535,463,819

Telecommunication Services 1.8%
AT&T, Inc.	2,389,386	0.8	73,975,391
Verizon Communications, Inc.	1,355,141	0.8	77,500,514
Other Securities		0.2	20,359,007
		1.8	171,834,912

Transportation 2.0%
Union Pacific Corp.	236,901	0.4	41,940,953
Other Securities		1.6	152,547,341
		2.0	194,488,294

Utilities 3.1%
Other Securities		3.1	303,616,676
Total Common Stock
(Cost $5,833,778,641)			9,690,430,355

Security	Number of Shares	% of Net Assets	Value ($)
Rights0.0% of net assets

Materials 0.0%
Other Securities		0.0	3,541

Media & Entertainment 0.0%
Other Securities		0.0	1,566

Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Other Securities		0.0	1,495
Total Rights
(Cost $5,036)			6,602

Other Investment Company0.1% of net assets

Securities Lending Collateral 0.1%
Other Securities		0.1	11,644,771
Total Other Investment Company
(Cost $11,644,771)			11,644,771
Security Rate, Maturity Date	Face Amount ($)	% of Net Assets	Value ($)
Short-Term Investments0.4% of net assets

Time Deposits 0.4%
Other Securities		0.4	34,497,868
Total Short-Term Investments
(Cost $34,497,868)			34,497,868

	Number of Contracts	Notional Amount ($)	Current Value/ Unrealized Appreciation ($)
Futures Contracts
Long
Russell 2000 Index, e-mini, expires 06/21/19	104	8,289,840	95,914
S&P 500 Index, e-mini, expires 06/21/19	323	47,618,275	519,180
Net Unrealized Appreciation			615,094

The following footnotes may not be applicable to the Condensed Portfolio Holdings. 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 $11,198,974.
(b)	Issuer is affiliated with the fund’s investment adviser.
(c)	Fair-valued by management using significant unobservable inputs in accordance with procedures approved by fund’s Board of Trustees.
(d)	The rate shown is the 7-day yield.
(e)	The rate shown is the current daily overnight rate.

CVR —	Contingent Value Rights
REIT —	Real Estate Investment Trust

₄₈

Schwab Equity Index Funds | Semiannual Report

See financial notes

Table of Contents

Schwab Total Stock Market Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

	Balance of Shares Held at 10/31/18	Gross Purchases	Gross Sales	Balance of Shares Held at 04/30/19	Market Value at 04/30/19	Net Change in Unrealized Appreciation (depreciation)	Realized Gains (Losses)	Dividends Received
The Charles Schwab Corp.	360,895	28,409	(1,389)	387,915	$17,758,749	($99,327)	($18,734)	$112,197

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Assets
Common Stock¹	$9,309,697,779	$—	$—	$9,309,697,779
Real Estate	380,732,576	—	—^*	380,732,576
Rights¹
Materials	—	—	3,541	3,541
Media & Entertainment	—	—	1,566	1,566
Pharmaceuticals, Biotechnology & Life Sciences	—	—	1,495^*	1,495
Other Investment Company¹	11,644,771	—	—	11,644,771
Short-Term Investments¹	—	34,497,868	—	34,497,868
Futures Contracts²	615,094	—	—	615,094
Total	$9,702,690,220	$34,497,868	$6,602	$9,737,194,690

*	Level 3 amount shown includes securities determined to have no value at April 30, 2019.
¹	As categorized in the complete schedule of Portfolio Holdings.
²	Futures contracts are valued at unrealized appreciation or depreciation.

₄₉

Schwab Equity Index Funds | Semiannual Report

See financial notes

Table of Contents

Schwab Total Stock Market Index Fund

Statement of Assets and Liabilities

As of April 30, 2019; unaudited

Assets
Investment in affiliated issuer, at value (cost $11,782,975)		$17,758,749
Investments in unaffiliated issuers, at value (cost $5,856,498,570) including securities on loan of $11,198,974		9,707,176,076
Collateral invested for securities on loan, at value (cost $11,644,771)		11,644,771
Deposit with broker for futures contracts		2,221,750
Receivables:
Fund shares sold		15,319,716
Dividends		7,471,390
Income from securities on loan		48,814
Variation margin on futures contracts		47,300
Interest		1,715
Foreign tax reclaims	+	159
Total assets		9,761,690,440
Liabilities
Collateral held for securities on loan		11,644,771
Payables:
Investment adviser fees		235,624
Fund shares redeemed	+	3,869,235
Total liabilities		15,749,630
Net Assets
Total assets		9,761,690,440
Total liabilities	–	15,749,630
Net assets		$9,745,940,810
Net Assets by Source
Capital received from investors		5,874,604,968
Total distributable earnings		3,871,335,842

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$9,745,940,810		188,602,750		$51.67

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Table of Contents

Schwab Total Stock Market Index Fund

Statement of Operations

For the period November 1, 2018 through April 30, 2019; unaudited

Investment Income
Dividends received from affiliated issuer		$112,197
Dividends received from unaffiliated issuers (net of foreign withholding tax of $5,338)		97,317,208
Interest		260,429
Securities on loan, net	+	1,466,668
Total investment income		99,156,502
Expenses
Investment adviser fees		1,305,554
Total expenses	–	1,305,554
Net investment income		97,850,948
Realized and Unrealized Gains (Losses)
Net realized losses on affiliated issuer		(18,734)
Net realized gains on unaffiliated issuers		1,385,286
Net realized losses on futures contracts	+	(55,020)
Net realized gains		1,311,532
Net change in unrealized appreciation (depreciation) on affiliated issuer		(99,327)
Net change in unrealized appreciation (depreciation) on unaffiliated issuers		764,646,433
Net change in unrealized appreciation (depreciation) on futures contracts	+	233,375
Net change in unrealized appreciation (depreciation)	+	764,780,481
Net realized and unrealized gains		766,092,013
Increase in net assets resulting from operations		$863,942,961

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Table of Contents

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
	11/1/18-4/30/19		11/1/17-10/31/18
Net investment income		$97,850,948	$143,017,289
Net realized gains		1,311,532	26,416,131
Net change in unrealized appreciation (depreciation)	+	764,780,481	268,899,542
Increase in net assets from operations		863,942,961	438,332,962
Distributions to Shareholders
Total distributions		($199,442,079)	($129,534,008)

Transactions in Fund Shares
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	VALUE	SHARES	VALUE
Shares sold		25,039,438	$1,179,936,326	47,531,781	$2,314,728,323
Shares reinvested		3,549,000	149,291,955	2,083,482	98,965,373
Shares redeemed	+	(13,817,353)	(657,338,490)	(21,085,111)	(1,033,026,077)
Net transactions in fund shares		14,771,085	$671,889,791	28,530,152	$1,380,667,619
Shares Outstanding and Net Assets
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		173,831,665	$8,409,550,137	145,301,513	$6,720,083,564
Total increase	+	14,771,085	1,336,390,673	28,530,152	1,689,466,573
End of period		188,602,750	$9,745,940,810	173,831,665	$8,409,550,137

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab U.S. Large-Cap Growth Index Fund

Financial Statements

Financial Highlights

	11/1/18– 4/30/19*	12/20/17¹– 10/31/18
Per-Share Data
Net asset value at beginning of period	$42.37	$40.00
Income (loss) from investment operations:
Net investment income (loss)²	0.28	0.46
Net realized and unrealized gains (losses)	4.72	1.91³
Total from investment operations	5.00	2.37
Less distributions:
Distributions from net investment income	(0.40)	—
Net asset value at end of period	$46.97	$42.37
Total return	12.05%⁴	5.93%⁴
Ratios/Supplemental Data
Ratios to average net assets:
Total expenses	0.036%⁵^,⁶	0.040%⁵^,⁷
Net operating expenses	N/A	0.02%⁵^,⁷
Net investment income (loss)	1.35%⁵	1.23%⁵
Portfolio turnover rate	28%⁴	23%⁴
Net assets, end of period (x 1,000,000)	$141	$93

*	Unaudited.

Commencement of operations.

Calculated based on the average shares outstanding during the period.

The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of sales and repurchases of fund shares in relation to fluctuating market values.

⁴

Not annualized.

⁵

Annualized.

⁶

Effective December 20, 2018, the annual operating expense ratio was reduced to 0.035%. The ratio presented for period ended 4/30/19 is a blended ratio. (See financial note 4)

⁷

The investment adviser voluntarily agreed to waive the fund’s management fees to 0.00% beginning with the fund’s commencement of operations through June 30, 2018. The ratio presented for period ended 10/31/18 is a blended ratio.

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Table of Contents

Schwab U.S. Large-Cap Growth Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited)

Security	Number of Shares	% of Net Assets	Value ($)
Common Stock99.7% of net assets

Automobiles & Components 0.4%
Other Securities		0.4	623,769

Banks 0.2%
Other Securities		0.2	250,600

Capital Goods 8.0%
3M Co.	4,712	0.6	892,971
Caterpillar, Inc.	5,312	0.5	740,599
Honeywell International, Inc.	4,558	0.6	791,406
Lockheed Martin Corp.	2,259	0.5	752,993
The Boeing Co.	5,401	1.4	2,039,904
Other Securities		4.4	6,047,089
		8.0	11,264,962

Commercial & Professional Services 1.1%
Other Securities		1.1	1,506,870

Consumer Durables & Apparel 1.6%
NIKE, Inc., Class B	12,419	0.8	1,090,761
Other Securities		0.8	1,172,751
		1.6	2,263,512

Consumer Services 2.4%
Starbucks Corp.	12,175	0.7	945,754
Other Securities		1.7	2,371,580
		2.4	3,317,334

Diversified Financials 3.2%
American Express Co.	4,800	0.4	562,704
S&P Global, Inc.	2,505	0.4	552,753
The Charles Schwab Corp.(a)	12,085	0.4	553,251
Other Securities		2.0	2,868,980
		3.2	4,537,688

Energy 0.7%
Other Securities		0.7	1,044,511

Food & Staples Retailing 1.0%
Costco Wholesale Corp.	4,407	0.8	1,082,051
Other Securities		0.2	364,357
		1.0	1,446,408

Security	Number of Shares	% of Net Assets	Value ($)
Food, Beverage & Tobacco 3.8%
Altria Group, Inc.	19,098	0.7	1,037,594
PepsiCo, Inc.	12,674	1.2	1,622,906
The Coca-Cola Co.	29,938	1.0	1,468,758
Other Securities		0.9	1,153,804
		3.8	5,283,062

Health Care Equipment & Services 5.3%
Intuitive Surgical, Inc. *	1,145	0.4	584,671
Stryker Corp.	3,444	0.5	650,606
UnitedHealth Group, Inc.	9,641	1.6	2,247,028
Other Securities		2.8	3,962,944
		5.3	7,445,249

Household & Personal Products 0.9%
Other Securities		0.9	1,257,783

Insurance 1.0%
Other Securities		1.0	1,387,911

Materials 1.8%
Linde plc	3,284	0.4	591,974
Other Securities		1.4	1,935,288
		1.8	2,527,262

Media & Entertainment 12.2%
Alphabet, Inc., Class A *	3,014	2.6	3,613,665
Alphabet, Inc., Class C *	3,072	2.6	3,651,011
Facebook, Inc., Class A *	23,988	3.3	4,639,279
Netflix, Inc. *	4,204	1.1	1,557,750
The Walt Disney Co.	10,759	1.0	1,473,660
Other Securities		1.6	2,311,650
		12.2	17,247,015

Pharmaceuticals, Biotechnology & Life Sciences 6.8%
AbbVie, Inc.	15,288	0.9	1,213,714
Amgen, Inc.	5,985	0.8	1,073,230
Celgene Corp. *	7,080	0.5	670,193
Eli Lilly & Co.	5,486	0.5	642,081
Gilead Sciences, Inc.	9,594	0.4	623,994
Johnson & Johnson	4,875	0.5	688,350
Other Securities		3.2	4,739,946
		6.8	9,651,508

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Table of Contents

Schwab U.S. Large-Cap Growth Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	% of Net Assets	Value ($)
Real Estate 2.3%
American Tower Corp.	4,424	0.6	864,007
Other Securities		1.7	2,331,318
		2.3	3,195,325

Retailing 10.8%
Amazon.com, Inc. *	4,152	5.7	7,998,911
Booking Holdings, Inc. *	467	0.6	866,280
Lowe's Cos., Inc.	8,102	0.7	916,660
The Home Depot, Inc.	11,393	1.6	2,320,754
The TJX Cos., Inc.	12,484	0.5	685,122
Other Securities		1.7	2,482,279
		10.8	15,270,006

Semiconductors & Semiconductor Equipment 4.2%
Broadcom, Inc.	2,452	0.6	780,717
NVIDIA Corp.	5,872	0.8	1,062,832
Texas Instruments, Inc.	9,698	0.8	1,142,715
Other Securities		2.0	2,916,467
		4.2	5,902,731

Software & Services 21.5%
Accenture plc, Class A	6,486	0.8	1,184,798
Adobe, Inc. *	4,960	1.0	1,434,680
Automatic Data Processing, Inc.	4,394	0.5	722,330
International Business Machines Corp.	6,662	0.7	934,479
Intuit, Inc.	2,492	0.4	625,641
Mastercard, Inc., Class A	9,167	1.7	2,330,618
Microsoft Corp.	72,406	6.7	9,456,224
PayPal Holdings, Inc. *	11,841	0.9	1,335,310
salesforce.com, Inc. *	7,335	0.9	1,212,842
Visa, Inc., Class A	17,770	2.1	2,921,921
Other Securities		5.8	8,192,431
		21.5	30,351,274

Technology Hardware & Equipment 7.8%
Apple, Inc.	47,911	6.8	9,614,300
Other Securities		1.0	1,412,505
		7.8	11,026,805

Security	Number of Shares	% of Net Assets	Value ($)
Telecommunication Services 0.2%
Other Securities		0.2	219,010

Transportation 2.5%
Union Pacific Corp.	6,705	0.8	1,187,053
United Parcel Service, Inc., Class B	6,965	0.5	739,822
Other Securities		1.2	1,623,087
		2.5	3,549,962
Total Common Stock
(Cost $121,670,391)			140,570,557

Other Investment Companies0.2% of net assets

Equity Fund 0.0%
Other Securities		0.0	52,167

Money Market Fund 0.2%
Other Securities		0.2	195,441
Total Other Investment Companies
(Cost $245,943)			247,608

The following footnotes may not be applicable to the Condensed Portfolio Holdings. Please refer to the complete schedule of portfolio holdings.

*	Non-income producing security.
(a)	Issuer is affiliated with the fund's investment adviser.
(b)	The rate shown is the 7-day yield.

ETF —

Exchange-traded fund

	Balance of Shares Held at 10/31/18	Gross Purchases	Gross Sales	Balance of Shares Held at 04/30/19	Market Value at 04/30/19	Net Change in Unrealized Appreciation (depreciation)	Realized Gains (Losses)	Dividends Received
The Charles Schwab Corp.	8,764	6,102	(2,781)	12,085	$553,251	$35,469	($29,577)	$2,968

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab U.S. Large-Cap Growth Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Assets
Common Stock¹	$140,570,557	$—	$—	$140,570,557
Other Investment Companies¹	247,608	—	—	247,608
Liabilities
Futures Contracts²	(1,400)	—	—	(1,400)
Total	$140,816,765	$—	$—	$140,816,765

¹	As categorized in the complete schedule of Portfolio Holdings.
²	Futures contracts are valued at unrealized appreciation or depreciation.

Fund investments in underlying mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the investments held by the underlying mutual funds and ETFs, which could be Level 1, Level 2 or Level 3.

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab U.S. Large-Cap Growth Index Fund

Statement of Assets and Liabilities

As of April 30, 2019; unaudited

Assets
Investment in affiliated issuer, at value (cost $575,946)		$553,251
Investments in unaffiliated issuers, at value (cost $121,340,388)		140,264,914
Cash		36,473
Deposit with broker for futures contracts		43,200
Receivables:
Investments sold		87,268
Fund shares sold		3,062,099
Dividends	+	59,420
Total assets		144,106,625
Liabilities
Payables:
Investments bought		2,800,020
Investment adviser fees		3,725
Fund shares redeemed		345,476
Variation margin on futures contracts	+	2,755
Total liabilities		3,151,976
Net Assets
Total assets		144,106,625
Total liabilities	–	3,151,976
Net assets		$140,954,649
Net Assets by Source
Capital received from investors		125,378,227
Total distributable earnings		15,576,422

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$140,954,649		3,000,802		$46.97

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab U.S. Large-Cap Growth Index Fund

Statement of Operations

For the period November 1, 2018 through April 30, 2019; unaudited

Investment Income
Dividends received from affiliated issuer		$2,968
Dividends received from unaffiliated issuers (net of foreign withholding tax of $12)	+	761,552
Total investment income		764,520
Expenses
Investment adviser fees		19,955
Total expenses	–	19,955
Net investment income		744,565
Realized and Unrealized Gains (Losses)
Net realized losses on affiliated issuer		(29,577)
Net realized losses on unaffiliated issuers		(3,301,324)
Net realized gains on futures contracts	+	77,301
Net realized losses		(3,253,600)
Net change in unrealized appreciation (depreciation) on affiliated issuer		35,469
Net change in unrealized appreciation (depreciation) on unaffiliated issuers		18,419,416
Net change in unrealized appreciation (depreciation) on futures contracts	+	(8,330)
Net change in unrealized appreciation (depreciation)	+	18,446,555
Net realized and unrealized gains		15,192,955
Increase in net assets resulting from operations		$15,937,520

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab U.S. Large-Cap Growth Index Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

Operations
	11/1/18-4/30/19		12/20/17*-10/31/18
Net investment income		$744,565	$654,019
Net realized losses		(3,253,600)	(519,372)
Net change in unrealized appreciation (depreciation)	+	18,446,555	453,876
Increase in net assets from operations		15,937,520	588,523
Distributions to Shareholders
Total distributions		($949,803)	$—

Transactions in Fund Shares
		11/1/18-4/30/19		12/20/17*-10/31/18
		SHARES	VALUE	SHARES	VALUE
Shares sold		1,900,819	$79,189,893	2,550,923	$107,925,443
Shares reinvested		22,696	838,591	—	—
Shares redeemed	+	(1,111,659)	(46,813,461)	(361,977)	(15,762,057)
Net transactions in fund shares		811,856	$33,215,023	2,188,946	$92,163,386
Shares Outstanding and Net Assets
		11/1/18-4/30/19		12/20/17*-10/31/18
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		2,188,946	$92,751,909	—	$—
Total increase	+	811,856	48,202,740	2,188,946	92,751,909
End of period		3,000,802	$140,954,649	2,188,946	$92,751,909

*	Commencement of operations.

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab U.S. Large-Cap Value Index Fund

Financial Statements

Financial Highlights

	11/1/18– 4/30/19*	12/20/17¹– 10/31/18
Per-Share Data
Net asset value at beginning of period	$39.51	$40.00
Income (loss) from investment operations:
Net investment income (loss)²	0.52	0.82
Net realized and unrealized gains (losses)	2.44	(1.31)
Total from investment operations	2.96	(0.49)
Less distributions:
Distributions from net investment income	(0.62)	—
Distributions from net realized gains	(0.06)	—
Total distributions	(0.68)	—
Net asset value at end of period	$41.79	$39.51
Total return	7.80%³	(1.23%)³
Ratios/Supplemental Data
Ratios to average net assets:
Total expenses	0.036%⁴^,⁵	0.040%⁴^,⁶
Net operating expenses	N/A	0.02%⁴^,⁶
Net investment income (loss)	2.70%⁴	2.36%⁴
Portfolio turnover rate	6%³	22%³
Net assets, end of period (x 1,000,000)	$181	$70

*	Unaudited.

Commencement of operations.

Calculated based on the average shares outstanding during the period.

Not annualized.

⁴

Annualized.

⁵

Effective December 20, 2018, the annual operating expense ratio was reduced to 0.035%. The ratio presented for period ended 4/30/19 is a blended ratio. (See financial note 4)

⁶

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab U.S. Large-Cap Value Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited)

Security	Number of Shares	% of Net Assets	Value ($)
Common Stock99.8% of net assets

Automobiles & Components 1.0%
General Motors Co.	17,580	0.4	684,741
Other Securities		0.6	1,030,725
		1.0	1,715,466

Banks 11.2%
Bank of America Corp.	120,951	2.0	3,698,682
Citigroup, Inc.	31,805	1.2	2,248,613
JPMorgan Chase & Co.	44,408	2.8	5,153,548
The PNC Financial Services Group, Inc.	6,131	0.5	839,518
U.S. Bancorp	20,303	0.6	1,082,556
Wells Fargo & Co.	55,417	1.5	2,682,737
Other Securities		2.6	4,549,816
		11.2	20,255,470

Capital Goods 5.7%
General Electric Co.	115,686	0.7	1,176,527
United Technologies Corp.	10,874	0.9	1,550,741
Other Securities		4.1	7,618,931
		5.7	10,346,199

Commercial & Professional Services 0.6%
Other Securities		0.6	1,099,686

Consumer Durables & Apparel 0.8%
Other Securities		0.8	1,478,215

Consumer Services 2.1%
McDonald's Corp.	8,401	0.9	1,659,786
Other Securities		1.2	2,048,864
		2.1	3,708,650

Diversified Financials 7.3%
Berkshire Hathaway, Inc., Class B *	22,719	2.7	4,923,435
BlackRock, Inc.	1,627	0.4	789,485
CME Group, Inc.	4,190	0.4	749,591
Morgan Stanley	16,271	0.4	785,076
The Goldman Sachs Group, Inc.	4,677	0.5	963,088
Other Securities		2.9	4,952,898
		7.3	13,163,573

Security	Number of Shares	% of Net Assets	Value ($)
Energy 9.3%
Chevron Corp.	25,562	1.7	3,068,974
ConocoPhillips	15,285	0.5	964,789
Exxon Mobil Corp.	56,855	2.5	4,564,319
Schlumberger Ltd.	18,601	0.4	793,891
Other Securities		4.2	7,467,566
		9.3	16,859,539

Food & Staples Retailing 1.6%
Walmart, Inc.	18,838	1.1	1,937,300
Other Securities		0.5	1,020,658
		1.6	2,957,958

Food, Beverage & Tobacco 3.6%
Mondelez International, Inc., Class A	19,150	0.5	973,778
Philip Morris International, Inc.	20,846	1.0	1,804,430
Other Securities		2.1	3,709,230
		3.6	6,487,438

Health Care Equipment & Services 6.2%
Abbott Laboratories	22,957	1.0	1,826,459
Anthem, Inc.	3,492	0.5	918,501
Becton, Dickinson & Co.	3,231	0.4	777,831
CVS Health Corp.	15,926	0.5	866,056
Danaher Corp.	8,422	0.6	1,115,410
Medtronic plc	18,157	0.9	1,612,523
Other Securities		2.3	4,039,506
		6.2	11,156,286

Household & Personal Products 2.5%
The Procter & Gamble Co.	33,430	2.0	3,559,626
Other Securities		0.5	995,863
		2.5	4,555,489

Insurance 4.3%
Chubb Ltd.	6,150	0.5	892,980
Other Securities		3.8	6,928,355
		4.3	7,821,335

Materials 4.0%
DowDuPont, Inc.	30,473	0.6	1,171,687
Other Securities		3.4	6,112,837
		4.0	7,284,524

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab U.S. Large-Cap Value Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	% of Net Assets	Value ($)
Media & Entertainment 3.3%
Comcast Corp., Class A	60,306	1.5	2,625,120
The Walt Disney Co.	9,113	0.7	1,248,208
Other Securities		1.1	2,105,148
		3.3	5,978,476

Pharmaceuticals, Biotechnology & Life Sciences 8.3%
Johnson & Johnson	29,545	2.3	4,171,754
Merck & Co., Inc.	32,587	1.4	2,564,923
Pfizer, Inc.	76,944	1.7	3,124,696
Thermo Fisher Scientific, Inc.	5,062	0.8	1,404,452
Other Securities		2.1	3,746,515
		8.3	15,012,340

Real Estate 5.0%
Other Securities		5.0	9,043,555

Retailing 1.5%
Other Securities		1.5	2,745,210

Semiconductors & Semiconductor Equipment 3.7%
Broadcom, Inc.	2,183	0.4	695,067
Intel Corp.	60,416	1.7	3,083,633
QUALCOMM, Inc.	16,266	0.8	1,400,991
Other Securities		0.8	1,589,378
		3.7	6,769,069

Software & Services 2.9%
Microsoft Corp.	5,393	0.4	704,326
Oracle Corp.	29,252	0.9	1,618,513
Other Securities		1.6	2,823,462
		2.9	5,146,301

Technology Hardware & Equipment 3.4%
Cisco Systems, Inc.	60,854	1.9	3,404,781
Other Securities		1.5	2,725,946
		3.4	6,130,727

Telecommunication Services 3.6%
AT&T, Inc.	97,563	1.7	3,020,550
Verizon Communications, Inc.	55,520	1.8	3,175,189
Other Securities		0.1	350,038
		3.6	6,545,777

Security	Number of Shares	% of Net Assets	Value ($)
Transportation 1.6%
Norfolk Southern Corp.	3,586	0.4	731,616
Other Securities		1.2	2,225,406
		1.6	2,957,022

Utilities 6.3%
Dominion Energy, Inc.	10,176	0.4	792,405
Duke Energy Corp.	9,563	0.5	871,381
NextEra Energy, Inc.	6,401	0.7	1,244,610
The Southern Co.	13,814	0.4	735,181
Other Securities		4.3	7,771,656
		6.3	11,415,233
Total Common Stock
(Cost $165,683,311)			180,633,538

Other Investment Company0.1% of net assets

Equity Fund 0.1%
Other Securities		0.1	102,200
Total Other Investment Company
(Cost $100,976)		��	102,200

The following footnotes may not be applicable to the Condensed Portfolio Holdings. Please refer to the complete schedule of portfolio holdings.

*	Non-income producing security.

ETF —	Exchange-traded fund
REIT —	Real Estate Investment Trust

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Table of Contents

Schwab U.S. Large-Cap Value Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Assets
Common Stock¹	$180,633,538	$—	$—	$180,633,538
Other Investment Company¹	102,200	—	—	102,200
Futures Contracts²	1,639	—	—	1,639
Total	$180,737,377	$—	$—	$180,737,377

¹	As categorized in the complete schedule of Portfolio Holdings.
²	Futures contracts are valued at unrealized appreciation or depreciation.

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Table of Contents

Schwab U.S. Large-Cap Value Index Fund

Statement of Assets and Liabilities

As of April 30, 2019; unaudited

Assets
Investments in unaffiliated issuers, at value (cost $165,784,287)		$180,735,738
Deposit with broker for futures contracts		29,400
Receivables:
Investments sold		1,432,833
Fund shares sold		2,650,473
Dividends		214,052
Variation margin on futures contracts	+	4,818
Total assets		185,067,314
Liabilities
Payables:
Investments bought		1,926,512
Investment adviser fees		5,119
Fund shares redeemed		2,095,348
Due to custodian	+	51,244
Total liabilities		4,078,223
Net Assets
Total assets		185,067,314
Total liabilities	–	4,078,223
Net assets		$180,989,091
Net Assets by Source
Capital received from investors		165,705,543
Total distributable earnings		15,283,548

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$180,989,091		4,330,754		$41.79

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Table of Contents

Schwab U.S. Large-Cap Value Index Fund

Statement of Operations

For the period November 1, 2018 through April 30, 2019; unaudited

Investment Income
Dividends (net of foreign withholding tax of $319)		$1,854,898
Expenses
Investment adviser fees		24,281
Total expenses	–	24,281
Net investment income		1,830,617
Realized and Unrealized Gains (Losses)
Net realized losses on investments		(670,605)
Net realized gains on futures contracts	+	48,945
Net realized losses		(621,660)
Net change in unrealized appreciation (depreciation) on investments		16,595,316
Net change in unrealized appreciation (depreciation) on futures contracts	+	759
Net change in unrealized appreciation (depreciation)	+	16,596,075
Net realized and unrealized gains		15,974,415
Increase in net assets resulting from operations		$17,805,032

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Table of Contents

Schwab U.S. Large-Cap Value Index Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

Operations
	11/1/18-4/30/19		12/20/17*-10/31/18
Net investment income		$1,830,617	$1,002,360
Net realized losses		(621,660)	(344,905)
Net change in unrealized appreciation (depreciation)	+	16,596,075	(1,642,985)
Increase (decrease) in net assets from operations		17,805,032	(985,530)
Distributions to Shareholders
Total distributions		($1,536,515)	$—

Transactions in Fund Shares
		11/1/18-4/30/19		12/20/17*-10/31/18
		SHARES	VALUE	SHARES	VALUE
Shares sold		3,121,852	$117,014,759	1,995,233	$80,009,188
Shares reinvested		38,320	1,344,745	—	—
Shares redeemed	+	(594,577)	(23,387,822)	(230,074)	(9,274,766)
Net transactions in fund shares		2,565,595	$94,971,682	1,765,159	$70,734,422
Shares Outstanding and Net Assets
		11/1/18-4/30/19		12/20/17*-10/31/18
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		1,765,159	$69,748,892	—	$—
Total increase	+	2,565,595	111,240,199	1,765,159	69,748,892
End of period		4,330,754	$180,989,091	1,765,159	$69,748,892

*	Commencement of operations.

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab U.S. Mid-Cap Index Fund

Financial Statements

Financial Highlights

	11/1/18– 4/30/19*	12/20/17¹– 10/31/18
Per-Share Data
Net asset value at beginning of period	$39.55	$40.00
Income (loss) from investment operations:
Net investment income (loss)²	0.36	0.59
Net realized and unrealized gains (losses)	4.09	(1.04)
Total from investment operations	4.45	(0.45)
Less distributions:
Distributions from net investment income	(0.42)	—
Distributions from net realized gains	(0.08)	—
Total distributions	(0.50)	—
Net asset value at end of period	$43.50	$39.55
Total return	11.59%³	(1.13%)³
Ratios/Supplemental Data
Ratios to average net assets:
Total expenses	0.04%⁴^,⁵	0.05%⁴^,⁶
Net operating expenses	N/A	0.03%⁴^,⁶
Net investment income (loss)	1.83%⁴	1.65%⁴
Portfolio turnover rate	12%³	15%³
Net assets, end of period (x 1,000,000)	$302	$171

*	Unaudited.

Commencement of operations.

Calculated based on the average shares outstanding during the period.

Not annualized.

⁴

Annualized.

⁵

Effective December 20, 2018, the annual operating expense ratio was reduced to 0.04%. The ratio presented for period ended 4/30/19 is a blended ratio. (See financial note 4)

⁶

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab U.S. Mid-Cap Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited)

Security	Number of Shares	% of Net Assets	Value ($)
Common Stock99.7% of net assets

Automobiles & Components 0.8%
Other Securities		0.8	2,517,537

Banks 4.3%
SunTrust Banks, Inc.	17,699	0.4	1,158,930
Other Securities		3.9	11,646,991
		4.3	12,805,921

Capital Goods 9.5%
Cummins, Inc.	5,863	0.3	974,958
Fortive Corp.	11,570	0.3	998,954
Ingersoll-Rand plc	9,652	0.4	1,183,432
PACCAR, Inc.	13,326	0.3	955,074
Roper Technologies, Inc.	3,992	0.5	1,435,922
Other Securities		7.7	23,087,440
		9.5	28,635,780

Commercial & Professional Services 2.4%
Other Securities		2.4	7,315,560

Consumer Durables & Apparel 3.0%
VF Corp.	12,761	0.4	1,204,766
Other Securities		2.6	7,729,622
		3.0	8,934,388

Consumer Services 3.2%
Hilton Worldwide Holdings, Inc.	10,867	0.3	945,320
Other Securities		2.9	8,584,730
		3.2	9,530,050

Diversified Financials 5.2%
Discover Financial Services	13,023	0.4	1,061,244
Moody's Corp.	6,569	0.4	1,291,597
Synchrony Financial	28,374	0.3	983,727
T. Rowe Price Group, Inc.	9,156	0.3	984,270
Other Securities		3.8	11,225,400
		5.2	15,546,238

Energy 3.9%
ONEOK, Inc.	16,162	0.4	1,097,885
The Williams Cos., Inc.	47,010	0.4	1,331,793
Other Securities		3.1	9,459,458
		3.9	11,889,136

Security	Number of Shares	% of Net Assets	Value ($)
Food & Staples Retailing 0.5%
Other Securities		0.5	1,413,077

Food, Beverage & Tobacco 2.9%
Archer-Daniels-Midland Co.	22,018	0.3	982,003
Other Securities		2.6	7,745,476
		2.9	8,727,479

Health Care Equipment & Services 5.8%
Align Technology, Inc. *	3,125	0.3	1,014,625
Edwards Lifesciences Corp. *	8,278	0.5	1,457,507
Zimmer Biomet Holdings, Inc.	8,028	0.3	988,728
Other Securities		4.7	13,974,552
		5.8	17,435,412

Household & Personal Products 0.7%
Other Securities		0.7	2,217,822

Insurance 3.7%
Other Securities		3.7	11,265,880

Materials 4.9%
Newmont Mining Corp.	32,251	0.3	1,001,716
Other Securities		4.6	13,800,718
		4.9	14,802,434

Media & Entertainment 3.1%
Twitter, Inc. *	28,216	0.4	1,126,101
Other Securities		2.7	8,300,134
		3.1	9,426,235

Pharmaceuticals, Biotechnology & Life Sciences 3.9%
Agilent Technologies, Inc.	12,564	0.3	986,274
IQVIA Holdings, Inc. *	6,838	0.3	949,798
Other Securities		3.3	9,732,959
		3.9	11,669,031

Real Estate 8.9%
AvalonBay Communities, Inc.	5,444	0.4	1,093,863
Digital Realty Trust, Inc.	8,103	0.3	953,804
Equity Residential	14,146	0.4	1,081,037
Welltower, Inc.	14,669	0.4	1,093,281
Other Securities		7.4	22,647,385
		8.9	26,869,370

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Table of Contents

Schwab U.S. Mid-Cap Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	% of Net Assets	Value ($)
Retailing 4.9%
AutoZone, Inc. *	990	0.3	1,018,027
Dollar General Corp.	10,484	0.4	1,321,928
Dollar Tree, Inc. *	9,252	0.3	1,029,563
O'Reilly Automotive, Inc. *	3,057	0.4	1,157,289
Ross Stores, Inc.	14,405	0.5	1,406,792
Other Securities		3.0	8,930,614
		4.9	14,864,213

Semiconductors & Semiconductor Equipment 3.7%
Advanced Micro Devices, Inc. *	36,918	0.3	1,020,044
Analog Devices, Inc.	14,561	0.6	1,692,571
Lam Research Corp.	6,014	0.4	1,247,484
Xilinx, Inc.	10,039	0.4	1,206,085
Other Securities		2.0	5,988,924
		3.7	11,155,108

Software & Services 12.0%
Autodesk, Inc. *	8,653	0.5	1,542,051
Fidelity National Information Services, Inc.	12,864	0.5	1,491,324
Fiserv, Inc. *	15,715	0.5	1,370,977
Paychex, Inc.	12,649	0.4	1,066,437
Red Hat, Inc. *	6,977	0.4	1,273,512
ServiceNow, Inc. *	7,013	0.6	1,904,100
Workday, Inc., Class A *	5,726	0.4	1,177,437
Worldpay, Inc., Class A *	11,800	0.5	1,383,078
Other Securities		8.2	24,974,800
		12.0	36,183,716

Technology Hardware & Equipment 3.8%
Amphenol Corp., Class A	11,628	0.4	1,157,684
Corning, Inc.	31,058	0.3	989,197
Other Securities		3.1	9,302,367
		3.8	11,449,248

Telecommunication Services 0.3%
Other Securities		0.3	1,003,155

Transportation 1.9%
Other Securities		1.9	5,666,648

Security	Number of Shares	% of Net Assets	Value ($)
Utilities 6.4%
Consolidated Edison, Inc.	12,273	0.4	1,057,442
Public Service Enterprise Group, Inc.	19,880	0.4	1,185,842
Sempra Energy	10,789	0.5	1,380,453
WEC Energy Group, Inc.	12,440	0.3	975,669
Xcel Energy, Inc.	20,052	0.4	1,132,938
Other Securities		4.4	13,499,880
		6.4	19,232,224
Total Common Stock
(Cost $275,365,314)			300,555,662

Other Investment Companies0.2% of net assets

Equity Fund 0.0%
Other Securities		0.0	123,112

Money Market Fund 0.2%
Other Securities		0.2	509,448
Total Other Investment Companies
(Cost $632,269)			632,560

The following footnotes may not be applicable to the Condensed Portfolio Holdings. Please refer to the complete schedule of portfolio holdings.

*	Non-income producing security.
(a)	The rate shown is the 7-day yield.

ETF —	Exchange-traded fund
REIT —	Real Estate Investment Trust

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab U.S. Mid-Cap Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Assets
Common Stock¹	$300,555,662	$—	$—	$300,555,662
Other Investment Companies¹	632,560	—	—	632,560
Futures Contracts²	3,596	—	—	3,596
Total	$301,191,818	$—	$—	$301,191,818

¹	As categorized in the complete schedule of Portfolio Holdings.
²	Futures contracts are valued at unrealized appreciation or depreciation.

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab U.S. Mid-Cap Index Fund

Statement of Assets and Liabilities

As of April 30, 2019; unaudited

Assets
Investments in unaffiliated issuers, at value (cost $275,997,583)		$301,188,222
Deposit with broker for futures contracts		106,600
Receivables:
Investments sold		57,991
Fund shares sold		2,944,081
Dividends	+	151,726
Total assets		304,448,620
Liabilities
Payables:
Investments bought		2,494,659
Investment adviser fees		9,560
Fund shares redeemed		397,064
Variation margin on futures contracts	+	1,400
Total liabilities		2,902,683
Net Assets
Total assets		304,448,620
Total liabilities	–	2,902,683
Net assets		$301,545,937
Net Assets by Source
Capital received from investors		279,220,002
Total distributable earnings		22,325,935

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$301,545,937		6,932,119		$43.50

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab U.S. Mid-Cap Index Fund

Statement of Operations

For the period November 1, 2018 through April 30, 2019; unaudited

Investment Income
Dividends (net of foreign withholding tax of $268)		$2,278,008
Expenses
Investment adviser fees		51,426
Total expenses	–	51,426
Net investment income		2,226,582
Realized and Unrealized Gains (Losses)
Net realized losses on investments		(3,920,705)
Net realized gains on futures contracts	+	200,837
Net realized losses		(3,719,868)
Net change in unrealized appreciation (depreciation) on investments		34,478,786
Net change in unrealized appreciation (depreciation) on futures contracts	+	(2,758)
Net change in unrealized appreciation (depreciation)	+	34,476,028
Net realized and unrealized gains		30,756,160
Increase in net assets resulting from operations		$32,982,742

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab U.S. Mid-Cap Index Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

Operations
	11/1/18-4/30/19		12/20/17*-10/31/18
Net investment income		$2,226,582	$1,634,470
Net realized losses		(3,719,868)	(58,632)
Net change in unrealized appreciation (depreciation)	+	34,476,028	(9,281,793)
Increase (decrease) in net assets from operations		32,982,742	(7,705,955)
Distributions to Shareholders
Total distributions		($2,951,274)	$—

Transactions in Fund Shares
		11/1/18-4/30/19		12/20/17*-10/31/18
		SHARES	VALUE	SHARES	VALUE
Shares sold		4,292,242	$167,762,158	4,668,513	$192,981,527
Shares reinvested		76,761	2,670,904	—	—
Shares redeemed	+	(1,767,744)	(70,196,657)	(337,653)	(13,997,508)
Net transactions in fund shares		2,601,259	$100,236,405	4,330,860	$178,984,019
Shares Outstanding and Net Assets
		11/1/18-4/30/19		12/20/17*-10/31/18
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		4,330,860	$171,278,064	—	$—
Total increase	+	2,601,259	130,267,873	4,330,860	171,278,064
End of period		6,932,119	$301,545,937	4,330,860	$171,278,064

*	Commencement of operations.

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab International Index Fund

Financial Statements

Financial Highlights

	11/1/18– 4/30/19*	11/1/17– 10/31/18	11/1/16– 10/31/17	11/1/15– 10/31/16	11/1/14– 10/31/15	11/1/13– 10/31/14
Per-Share Data
Net asset value at beginning of period	$19.00	$21.01	$17.52	$18.49	$19.42	$19.92
Income (loss) from investment operations:
Net investment income (loss)	0.31¹	0.62¹	0.55¹	0.53¹	0.54¹	0.64
Net realized and unrealized gains (losses)	1.12	(2.06)	3.49	(1.03)	(0.86)	(0.63)
Total from investment operations	1.43	(1.44)	4.04	(0.50)	(0.32)	0.01
Less distributions:
Distributions from net investment income	(0.55)	(0.57)	(0.55)	(0.47)	(0.61)	(0.51)
Net asset value at end of period	$19.88	$19.00	$21.01	$17.52	$18.49	$19.42
Total return	8.01%²	(7.11%)	23.76%	(2.64%)	(1.53%)	0.09%
Ratios/Supplemental Data
Ratios to average net assets:
Total expenses	0.06%³	0.06%	0.11%⁴	0.23%	0.23%	0.23%
Net operating expenses	N/A	N/A⁵	0.10%⁴	0.19%	0.19%	0.19%
Net investment income (loss)	3.34%³	2.99%	2.88%	3.06%	2.82%	3.42%
Portfolio turnover rate	3%²	5%	3%	4%	7%	2%
Net assets, end of period (x 1,000,000)	$5,031	$4,314	$4,128	$2,900	$2,844	$2,699

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Not annualized.

Annualized.

⁴

Effective March 1, 2017, the annual operating expense ratio was reduced. The ratio presented for period ended 10/31/17 is a blended ratio.

⁵

Effective March 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated.

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Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab International Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited)

Security	Number of Shares	% of Net Assets	Value ($)
Common Stock98.6% of net assets

Australia 6.8%
Australia & New Zealand Banking Group Ltd.	1,017,635	0.4	19,522,896
BHP Group Ltd.	1,059,047	0.6	28,024,866
Commonwealth Bank of Australia	633,178	0.7	33,276,804
CSL Ltd.	161,879	0.5	22,705,436
Westpac Banking Corp.	1,220,306	0.5	23,706,151
Other Securities		4.1	214,556,171
		6.8	341,792,324

Austria 0.2%
Other Securities		0.2	12,289,745

Belgium 1.0%
Anheuser-Busch InBev S.A./N.V.	272,741	0.5	24,248,619
Other Securities		0.5	26,511,519
		1.0	50,760,138

Denmark 1.7%
Novo Nordisk A/S, Class B	648,305	0.6	31,763,405
Other Securities		1.1	54,182,577
		1.7	85,945,982

Finland 1.0%
Other Securities		1.0	48,969,515

France 11.3%
Air Liquide S.A.	152,002	0.4	20,221,104
Airbus SE	207,304	0.6	28,386,064
AXA S.A.(a)	697,173	0.4	18,591,197
BNP Paribas S.A.	398,531	0.4	21,215,037
L'Oreal S.A.	89,772	0.5	24,692,010
LVMH Moet Hennessy Louis Vuitton SE	98,904	0.8	38,831,401
Sanofi	401,887	0.7	35,064,346
TOTAL S.A.	862,757	1.0	47,961,318
Other Securities		6.5	335,712,370
		11.3	570,674,847

Germany 8.3%
Allianz SE	150,664	0.7	36,417,615
BASF SE	329,591	0.5	26,908,119
Bayer AG	333,716	0.4	22,210,728
Daimler AG	323,396	0.4	21,226,412
Deutsche Telekom AG	1,189,031	0.4	19,922,096

Security	Number of Shares	% of Net Assets	Value ($)
SAP SE	351,145	0.9	45,265,505
Siemens AG	273,514	0.7	32,794,935
Other Securities		4.3	213,589,077
		8.3	418,334,487

Hong Kong 4.0%
AIA Group Ltd.	4,306,400	0.9	44,095,105
Other Securities		3.1	158,146,219
		4.0	202,241,324

Ireland 0.6%
Other Securities		0.6	27,757,002

Israel 0.5%
Other Securities		0.5	26,990,720

Italy 2.3%
Other Securities		2.3	116,527,926

Japan 23.6%
Keyence Corp.	34,500	0.4	21,555,373
Mitsubishi UFJ Financial Group, Inc.	4,182,109	0.4	20,749,639
SoftBank Group Corp.	294,800	0.6	31,258,034
Sony Corp.	450,500	0.5	22,690,829
Takeda Pharmaceutical Co., Ltd.	525,090	0.4	19,376,727
Toyota Motor Corp.	815,903	1.0	50,512,916
Other Securities		20.3	1,019,505,766
		23.6	1,185,649,284

Netherlands 3.6%
ASML Holding N.V.	146,339	0.6	30,557,159
Unilever N.V. CVA	550,616	0.7	33,314,779
Other Securities		2.3	118,528,588
		3.6	182,400,526

New Zealand 0.2%
Other Securities		0.2	12,061,137

Norway 0.7%
Other Securities		0.7	35,275,078

Portugal 0.2%
Other Securities		0.2	7,933,795

₇₅

Schwab Equity Index Funds | Semiannual Report

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Table of Contents

Schwab International Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	% of Net Assets	Value ($)
Singapore 1.4%
Other Securities		1.4	68,735,448

Spain 3.0%
Banco Santander S.A.	5,765,547	0.6	29,227,723
Iberdrola S.A.	2,204,463	0.4	20,032,814
Other Securities		2.0	101,284,578
		3.0	150,545,115

Sweden 2.7%
Other Securities		2.7	133,960,064

Switzerland 8.7%
Nestle S.A.	1,090,236	2.1	104,965,309
Novartis AG	772,976	1.3	63,337,704
Roche Holding AG	250,222	1.3	66,024,399
UBS Group AG *	1,384,592	0.4	18,566,625
Other Securities		3.6	182,313,948
		8.7	435,207,985

United Kingdom 16.8%
AstraZeneca plc	452,642	0.7	33,721,739
BP plc	7,154,748	1.0	52,027,173
British American Tobacco plc	816,972	0.6	31,983,571
Diageo plc	867,085	0.7	36,554,329
GlaxoSmithKline plc	1,772,770	0.7	36,418,398
HSBC Holdings plc	7,142,303	1.2	62,230,634
Lloyds Banking Group plc	25,360,025	0.4	20,740,318
Prudential plc	920,305	0.4	20,910,593
Reckitt Benckiser Group plc	237,772	0.4	19,237,284
Rio Tinto plc	409,773	0.5	23,905,775
Royal Dutch Shell plc, A Shares	1,608,482	1.0	51,248,533
Royal Dutch Shell plc, B Shares	1,332,009	0.9	42,988,389
Unilever plc	397,001	0.5	24,064,246
Other Securities		7.8	388,888,700
		16.8	844,919,682
Total Common Stock
(Cost $4,127,349,315)			4,958,972,124

Preferred Stock0.5% of net assets

Germany 0.5%
Other Securities		0.5	26,693,538

United Kingdom 0.0%
Other Securities		0.0	56,212
Total Preferred Stock
(Cost $25,008,403)			26,749,750

Security	Number of Shares	% of Net Assets	Value ($)
Other Investment Company0.3% of net assets

United States 0.3%
Securities Lending Collateral 0.3%
Other Securities		0.3	14,091,813
Total Other Investment Company
(Cost $14,091,813)			14,091,813
Security Rate, Maturity Date	Face Amount ($)	% of Net Assets	Value ($)
Short-Term Investments0.2% of net assets

Time Deposits 0.2%
Other Securities		0.2	10,008,159
Total Short-Term Investments
(Cost $10,008,159)			10,008,159

	Number of Contracts	Notional Amount ($)	Current Value/ Unrealized Appreciation ($)
Futures Contracts
Long
MSCI EAFE Index, expires 06/21/19	380	36,423,000	78,365

The following footnotes may not be applicable to the Condensed Portfolio Holdings. 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 $13,508,352.
(b)	Fair-valued by management using significant unobservable inputs in accordance with procedures approved by fund’s Board of Trustees.
(c)	The rate shown is the 7-day yield.
(d)	The rate shown is the current daily overnight rate.

ADR —	American Depositary Receipt
CVA —	Dutch Certificate
REIT —	Real Estate Investment Trust
RSP —	Risparmio (Convertible Savings Shares)
SDR —	Swedish Depositary Receipt

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Schwab International Index Fund

Condensed Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Assets
Common Stock¹	$—	$2,770,991,054	$—	$2,770,991,054
Austria	4,270,708	8,019,037	—	12,289,745
Denmark	10,499,508	75,446,474	—	85,945,982
Finland	2,262,503	46,707,012	—	48,969,515
France	64,704,049	505,970,798	—	570,674,847
Germany	38,919,779	379,414,708	—	418,334,487
Hong Kong	5,630,341	196,610,983	—	202,241,324
Ireland	12,147,240	15,609,762	—	27,757,002
Israel	12,626,321	14,364,399	—	26,990,720
Netherlands	19,227,046	163,173,480	—	182,400,526
Norway	908,381	34,366,697	—	35,275,078
Portugal	1,401,917	6,531,878	—^*	7,933,795
Sweden	991,928	132,968,136	—	133,960,064
Switzerland	11,627,136	423,580,849	—	435,207,985
Preferred Stock
Germany	6,546,573	20,146,965	—	26,693,538
United Kingdom	—	—	56,212	56,212
Other Investment Company¹	14,091,813	—	—	14,091,813
Short-Term Investments¹	—	10,008,159	—	10,008,159
Futures Contracts²	78,365	—	—	78,365
Total	$205,933,608	$4,803,910,391	$56,212	$5,009,900,211

*	Level 3 amount shown includes securities determined to have no value at April 30, 2019.
¹	As categorized in the complete schedule of Portfolio Holdings.
²	Futures contracts are valued at unrealized appreciation or depreciation.

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Schwab International Index Fund

Statement of Assets and Liabilities

As of April 30, 2019; unaudited

Assets
Investments in unaffiliated issuers, at value (cost $4,162,365,877) including securities on loan of $13,508,352		$4,995,730,033
Collateral invested for securities on loan, at value (cost $14,091,813)		14,091,813
Foreign currency, at value (cost $188,608)		189,210
Deposit with broker for futures contracts		2,524,500
Receivables:
Dividends		22,073,450
Fund shares sold		12,122,697
Foreign tax reclaims		7,888,752
Income from securities on loan		176,486
Variation margin on futures contracts		8,631
Interest	+	362
Total assets		5,054,805,934
Liabilities
Collateral held for securities on loan		14,091,813
Payables:
Investments bought		5,005,741
Investment adviser fees		244,976
Fund shares redeemed	+	4,566,967
Total liabilities		23,909,497
Net Assets
Total assets		5,054,805,934
Total liabilities	–	23,909,497
Net assets		$5,030,896,437
Net Assets by Source
Capital received from investors		4,368,683,807
Total distributable earnings		662,212,630

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$5,030,896,437		253,123,716		$19.88

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Statement of Operations

For the period November 1, 2018 through April 30, 2019; unaudited

Investment Income
Dividends (net of foreign withholding tax of $7,914,160)		$77,790,476
Interest		109,247
Securities on loan, net	+	358,895
Total investment income		78,258,618
Expenses
Investment adviser fees		1,379,545
Total expenses	–	1,379,545
Net investment income		76,879,073
Realized and Unrealized Gains (Losses)
Net realized losses on investments		(56,829,379)
Net realized gains on futures contracts		1,604,105
Net realized losses on foreign currency transactions	+	(279,101)
Net realized losses		(55,504,375)
Net change in unrealized appreciation (depreciation) on investments		345,454,661
Net change in unrealized appreciation (depreciation) on futures contracts		(395,316)
Net change in unrealized appreciation (depreciation) on foreign currency translations	+	(143,124)
Net change in unrealized appreciation (depreciation)	+	344,916,221
Net realized and unrealized gains		289,411,846
Increase in net assets resulting from operations		$366,290,919

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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
	11/1/18-4/30/19		11/1/17-10/31/18
Net investment income		$76,879,073	$133,025,660
Net realized losses		(55,504,375)	(29,407,991)
Net change in unrealized appreciation (depreciation)	+	344,916,221	(439,100,565)
Increase (decrease) in net assets from operations		366,290,919	(335,482,896)
Distributions to Shareholders
Total distributions		($132,253,839)	($112,933,005)

Transactions in Fund Shares
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	VALUE	SHARES	VALUE
Shares sold		67,962,367	$1,262,972,224	68,078,593	$1,412,881,267
Shares reinvested		5,815,026	99,611,394	4,270,674	88,744,607
Shares redeemed	+	(47,650,342)	(879,704,649)	(41,807,131)	(866,997,348)
Net transactions in fund shares		26,127,051	$482,878,969	30,542,136	$634,628,526
Shares Outstanding and Net Assets
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		226,996,665	$4,313,980,388	196,454,529	$4,127,767,763
Total increase	+	26,127,051	716,916,049	30,542,136	186,212,625
End of period		253,123,716	$5,030,896,437	226,996,665	$4,313,980,388

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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 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 U.S. Large-Cap Growth Index Fund	Schwab Target 2055 Fund
Schwab U.S. Large-Cap Value Index Fund	Schwab Target 2060 Fund
Schwab U.S. Mid-Cap Index Fund	Schwab Fundamental US Large Company Index Fund
Schwab International Index Fund	Schwab Fundamental US Small Company Index Fund
Schwab MarketTrack All Equity Portfolio™	Schwab Fundamental International Large Company Index Fund
Schwab MarketTrack Growth Portfolio™	Schwab Fundamental International Small Company Index Fund
Schwab MarketTrack Balanced Portfolio™	Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab MarketTrack Conservative Portfolio™	Schwab Fundamental Global Real Estate Index Fund
Laudus International MarketMasters Fund™	Schwab Target 2010 Index Fund
Schwab Balanced Fund	Schwab Target 2015 Index Fund
Schwab Core Equity Fund	Schwab Target 2020 Index Fund
Schwab Dividend Equity Fund	Schwab Target 2025 Index Fund
Schwab Large-Cap Growth Fund	Schwab Target 2030 Index Fund
Schwab Small-Cap Equity Fund	Schwab Target 2035 Index Fund
Schwab Hedged Equity Fund	Schwab Target 2040 Index Fund
Schwab Health Care Fund	Schwab Target 2045 Index Fund
Schwab International Core Equity Fund	Schwab Target 2050 Index Fund
Schwab Target 2010 Fund	Schwab Target 2055 Index Fund
Schwab Target 2015 Fund	Schwab Target 2060 Index Fund
Schwab Target 2020 Fund	Schwab Monthly Income Fund – Moderate Payout
Schwab Target 2025 Fund	Schwab Monthly Income Fund – Enhanced Payout
Schwab Target 2030 Fund	Schwab Monthly Income Fund – Maximum Payout
Schwab Target 2035 Fund

SCHWAB INVESTMENTS (ORGANIZED OCTOBER 26, 1990)
Schwab 1000 Index Fund	Schwab Tax-Free Bond Fund
Schwab Treasury Inflation Protected Securities Index Fund	Schwab California Tax-Free Bond Fund
Schwab U.S. Aggregate Bond Index Fund	Schwab Global Real Estate Fund
Schwab Short-Term Bond Index Fund

Each fund in this report offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds’ Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.

Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law.

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard CodificationTopic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).

The funds may invest in certain other investment companies (underlying funds). For specific investments in underlying funds, please refer to the complete schedule of portfolio holdings on Form N-CSR(S) for this reporting period, 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 and are available on the SEC’s website at www.sec.gov.

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Financial Notes, unaudited(continued)

2. Significant Accounting Policies (continued):

(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 the mean of the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.

• 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 the funds valuing their 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.

• 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.

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Financial Notes, unaudited(continued)

2. Significant Accounting Policies (continued):

• Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)—Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include 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.

• 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, 2019 are disclosed in the Condensed 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 trusts’ Securities Lending Program, a fund (lender), may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating under Rule 2a-7 of the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the funds or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. Securities lending income, as disclosed in each fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. The aggregate 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. Securities lending fees paid to the unaffiliated lending agents start at 10% of gross lending revenue, with subsequent breakpoints to a low of 7.5%. Any expenses charged by the cash collateral fund are in addition to these fees.

As of April 30, 2019, the funds had securities on loan, all of which were classified as common stocks. The value of the securities on loan and the related collateral as of April 30, 2019, if any, are disclosed in each fund’s Condensed Portfolio Holdings. The value of the securities on loan and the investment of cash collateral are also disclosed in each fund’s Statement of Assets and Liabilities.

Cash Management Transactions: The funds, except for Schwab 1000 Index Fund, Schwab U.S. Large-Cap Growth Index Fund, Schwab U.S. Large-Cap Value Index Fund and Schwab U.S. Mid-Cap Index Fund may subscribe to the Brown Brothers Harriman & Co. (BBH) Cash Management Service Sweep (CMS Sweep). The BBH CMS Sweep is an investment product that automatically

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Financial Notes, unaudited(continued)

2. Significant Accounting Policies (continued):

sweeps the funds’ cash balances into overnight offshore time deposits with either the BBH Grand Cayman branch or a branch of a pre-approved commercial bank. This fully automated program allows the funds to earn interest on cash balances. Excess cash invested with deposit institutions domiciled outside of the U.S., as with any offshore deposit, may be subject to sovereign actions in the jurisdiction of the deposit institution including, but not limited to, freeze, seizure or diminution. The funds bear the risk associated with the repayment of principal and payment of interest on such instruments by the institution with which the deposit is ultimately placed. Balances in the CMS Sweep are accounted for on a cost basis, which approximates market value.

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 appreciation or depreciation arises from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. These realized and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations in 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 appreciation 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, in the form of cash or non-cash income such as in the form of additional securities, and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the 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.

In 2015, the Schwab International Index Fund filed claims to recover taxes previously withheld in certain European Union countries on the basis that those countries had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. These filings are subject to various administrative and judicial proceedings within these countries, and all professional fees associated with these filings have been paid by the investment adviser. For additional details, see Affiliates and Affiliated Transactions in financial note 4, Other Affiliated Transactions.

(e) Expenses:

Pursuant to an Amended and Restated Investment Advisory and Administration Agreement (Advisory Agreement) between Charles Schwab Investment Management, Inc. (CSIM or the investment adviser) and each trust, CSIM pays the operating expenses of each fund, excluding acquired fund fees and expenses, taxes, any brokerage expenses, and extraordinary or non-routine expenses. Taxes, any brokerage expenses and extraordinary or non-routine expenses that are specific to a fund are charged directly to the fund.

(f) Distributions to Shareholders:

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

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Financial Notes, unaudited(continued)

2. Significant Accounting Policies (continued):

(g) Accounting Estimates:

The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.

(h) Federal Income Taxes:

The funds intend to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the funds distribute substantially all of their net investment income and net realized capital gains, if any, to their respective shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax.

(i) Foreign Taxes:

The funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges and capital gains on investments. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in foreign markets in which the funds invest. These foreign taxes, if any, are paid by the funds and are disclosed in the Statement of Operations. Foreign taxes payable as of April 30, 2019, if any, are reflected in each fund’s Statement of Assets and Liabilities.

(j) Indemnification:

Under the funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss attributable to these arrangements to be remote.

(k) Recent Accounting Standards:

In August 2018, the FASB issued Accounting Standards Update “Fair Value Measurement (Topic 820)” (ASU 2018-13) which modifies the disclosure requirements for fair value measurement by removing, modifying, or adding certain disclosures. The amendments are effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The funds are permitted to early adopt any removed or modified disclosures upon issuance of this update and delay adoption of the additional disclosures until their effective date. The funds have early adopted certain removed or modified disclosures, including the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for timing of transfers between levels upon issuance of ASU 2018-13, and have delayed adoption of the additional disclosures until their effective date. At this time, management is currently evaluating the impact that the adoption of the additional disclosures will have on the funds’ financial statements.

3. Risk Factors:

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

Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. As with any investment whose performance is tied to these markets, the value of an investment in a fund will fluctuate, which means that an investor could lose money over short or long periods.

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 respective index, although it may not be successful in doing so. The divergence between the performance of a fund and the index, positive or negative, is called “tracking error.” Tracking error can be caused by many factors and it may be significant.

Investment Style Risk. The funds are index funds. Therefore, each fund follows the securities included in its respective index 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.

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Financial Notes, unaudited(continued)

3. Risk Factors (continued):

Sampling Index Tracking Risk. To the extent a fund uses sampling techniques, a fund will not fully replicate its index and may hold securities not included in the index. As a result, a fund will be subject to the risk that the investment adviser’s investment 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 the 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 vulnerable to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector, country or asset class.

Market Capitalization Risk.Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, a fund’s performance could be impacted.

Large-Cap Company Risk.Large-cap companies are generally more mature and the securities issued by these companies may not be able to reach the same levels of growth as the securities issued by small- or mid-cap companies.

Mid-Cap Company Risk. Mid-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies and the value of securities issued by these companies may move sharply.

Small-Cap Company Risk. Securities issued by small-cap companies may be riskier than those issued by larger companies, and their prices may move sharply, especially during market upturns and downturns.

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.

Value Investing Risk. A fund may emphasize “value” style of investing, which targets undervalued companies with characteristics for improved valuations. This style of investing is subject to the risk that the valuations never improve or that the returns on “value” securities may not move in tandem with the returns on other styles of investing or the stock market in general.

Foreign Investment Risk. A fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of a fund’s investments, and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar. To the extent a fund’s investments in a single country or a limited number of countries represent a large percentage of the fund’s assets, the fund’s performance may be adversely affected by the economic, political, regulatory and social conditions in those countries, and the fund’s price may be more volatile than the price of a fund that is geographically diversified.

Derivatives Risk. A fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are futures and options on futures. An option is the right to buy or sell an instrument at a specific price before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. The use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) could cause the fund to become a commodity pool, which would require the fund to comply with certain CFTC rules.

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Financial Notes, unaudited(continued)

3. Risk Factors (continued):

risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause a fund to realize higher amounts of short-term capital gains. A fund’s use of derivatives could reduce the fund’s performance, increase its volatility, and could cause the fund to lose more than the initial amount invested.

Liquidity Risk. A fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the fund may have to sell them at a loss.

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

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

4. Affiliates and Affiliated Transactions:

Investment Adviser

CSIM, a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to an Advisory Agreement between CSIM and each 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 S&P 500 Index Fund	Schwab 1000 Index Fund	Schwab Small-Cap Index Fund	Schwab Total Stock Market Index Fund	Schwab U.S. Large-Cap Growth Index Fund	Schwab U.S. Large-Cap Value Index Fund	Schwab U.S. Mid-Cap Index Fund	Schwab International Index Fund
0.02%	0.05%	0.04%	0.03%	0.035%	0.035%	0.04%	0.06%

Prior to December 20, 2018, the advisory and administrative services fee of each fund were as follows:

Schwab S&P 500 Index Fund	Schwab 1000 Index Fund	Schwab Small-Cap Index Fund	Schwab Total Stock Market Index Fund	Schwab U.S. Large-Cap Growth Index Fund	Schwab U.S. Large-Cap Value Index Fund	Schwab U.S. Mid-Cap Index Fund	Schwab International Index Fund
0.03%	0.05%	0.05%	0.03%	0.04%	0.04%	0.05%	0.06%

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Financial Notes, unaudited(continued)

4. Affiliates and Affiliated Transactions (continued):

Investments from Affiliates

Certain funds in the Fund Complex (for definition refer to Trustees and Officers section) may own shares of other funds in the Fund Complex. The table below reflects the percentages of shares of each fund in this report that are owned by other funds in the Fund Complex as of April 30, 2019, as applicable:

	Underlying Funds
	Schwab S&P 500 Index Fund	Schwab Small-Cap Index Fund	Schwab U.S. Mid-Cap Index Fund	Schwab International Index Fund
Schwab MarketTrack All Equity Portfolio	0.6%	2.8%	—%	1.9%
Schwab MarketTrack Balanced Portfolio	0.3%	1.3%	—%	0.8%
Schwab MarketTrack Conservative Portfolio	0.1%	0.4%	—%	0.2%
Schwab MarketTrack Growth Portfolio	0.6%	2.7%	—%	1.6%
Schwab Target 2010 Fund	0.0%*	—%	0.2%	—%
Schwab Target 2015 Fund	0.0%*	—%	0.2%	—%
Schwab Target 2020 Fund	0.2%	—%	1.7%	—%
Schwab Target 2025 Fund	0.2%	—%	2.3%	—%
Schwab Target 2030 Fund	0.4%	—%	4.4%	—%
Schwab Target 2035 Fund	0.2%	—%	2.2%	—%
Schwab Target 2040 Fund	0.4%	—%	5.5%	—%
Schwab Target 2045 Fund	0.1%	—%	0.8%	—%
Schwab Target 2050 Fund	0.1%	—%	0.8%	—%
Schwab Target 2055 Fund	0.0%*	—%	0.5%	—%
Schwab Target 2060 Fund	0.0%*	—%	0.1%	—%

*	Less than 0.05%

Other Affiliated Transactions

Schwab International Index Fund has recovered previously withheld foreign taxes from Finland. The investment adviser has paid upfront professional fees associated with recovering these foreign taxes in the amount of $131,932 for Schwab International Index Fund and the amount of $58,864 has been reimbursed to the investment adviser by the fund.

As of April 30, 2019, the balance of professional fees related to foreign withholding tax subject to future reimbursement to the investment adviser was $73,068 for Schwab International Index Fund.

No other amounts for additional tax reclaims are reflected in the financial statements due to the uncertainty surrounding the ultimate resolution of proceedings, the likelihood of receipt of these claims, and the potential timing of payment.

Interfund Borrowing and Lending

Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions with other funds in the Fund Complex. All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The funds had no interfund borrowing or lending activity during the period.

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Financial Notes, unaudited(continued)

4. Affiliates and Affiliated Transactions (continued):

Interfund Transactions

The funds may engage in transactions with certain other funds in the Fund Complex when permitted by applicable law. When one fund is seeking to sell a security that another is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs. This practice is limited to funds that share the same investment adviser, trustees and/or officers. For the period ended April 30, 2019, each fund’s total aggregate security transactions with other funds in the Fund Complex as well as any realized gains (losses) were as follows:

	Total Aggregate Transactions	Realized Gains (Losses)
Schwab S&P 500 Index Fund	$145,631,690	($27,070,893)
Schwab 1000 Index Fund	29,183,029	2,805,756
Schwab Small-Cap Index Fund	32,705,270	(11,664,586)
Schwab Total Stock Market Index Fund	78,524,848	(8,520,207)
Schwab U.S. Large-Cap Growth Index Fund	390,905	(52,989)
Schwab U.S. Large-Cap Value Index Fund	849,969	(39,886)
Schwab U.S. Mid-Cap Index Fund	1,297,903	(172,044)
Schwab International Index Fund	6,466,093	(4,066,591)

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 trusts were in compliance with these limitations throughout the report period. The funds do not pay any interested or non-interested (independent trustees) trustees. The independent trustees are paid by CSIM. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.

6. Borrowing from Banks:

During the period, the funds were participants with other U.S. registered investment companies managed by CSIM in a joint, syndicated, committed $750 million line of credit (the Syndicated Credit Facility), maturing on October 3, 2019. Under the terms of the Syndicated Credit Facility, in addition to CSIM paying the interest charged on any borrowings by a fund, CSIM paid a commitment fee of 0.15% per annum on the funds’ proportionate share of the unused portion of the Syndicated Credit Facility.

During the period, the funds were participants with other U.S. registered investment companies managed by CSIM in a joint, unsecured, uncommitted $500 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, which matured on November 30, 2018. On November 30, 2018, the Uncommitted Credit Facility was amended to run for a new 364 day period, maturing on November 29, 2019. Under the terms of the Uncommitted Credit Facility, CSIM pays interest on the amount a fund borrows. There were no borrowings from either line of credit during the period.

The funds also have access to custodian overdraft facilities. A fund may have utilized the overdraft facility and incurred an interest expense, which is paid by CSIM. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

7. Derivatives:

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Financial Notes, unaudited(continued)

7. Derivatives (continued):

accounting policies with respect to futures contracts and financial note 3 for disclosures concerning the risks of investing in futures contracts. During the period ended April 30, 2019, the month-end average notional amounts of futures contracts held by the funds and the month-end average number of contracts held were as follows:

	Notional Amounts	Number of Contracts
Schwab S&P 500 Index Fund	$185,640,189	1,368
Schwab 1000 Index Fund	36,908,679	271
Schwab Small-Cap Index Fund	25,723,064	344
Schwab Total Stock Market Index Fund	47,396,073	387
Schwab U.S. Large-Cap Growth Index Fund	410,035	6
Schwab U.S. Large-Cap Value Index Fund	578,058	10
Schwab U.S. Mid-Cap Index Fund	1,353,139	7
Schwab International Index Fund	28,451,896	313

8. Purchases and Sales of Investment Securities:

For the period ended April 30, 2019, purchases and sales of securities (excluding short-term obligations) were as follows:

	Purchases of Securities	Sales of Securities
Schwab S&P 500 Index Fund	$1,651,398,214	$405,937,127
Schwab 1000 Index Fund	177,098,349	188,877,307
Schwab Small-Cap Index Fund	356,465,590	102,392,579
Schwab Total Stock Market Index Fund	694,205,581	100,860,118
Schwab U.S. Large-Cap Growth Index Fund	64,761,654	31,470,318
Schwab U.S. Large-Cap Value Index Fund	103,580,274	7,527,259
Schwab U.S. Mid-Cap Index Fund	130,992,008	29,910,496
Schwab International Index Fund	605,243,513	158,024,332

9. Federal Income Taxes:

As of April 30, 2019, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:

	Schwab S&P 500 Index Fund	Schwab 1000 Index Fund	Schwab Small-Cap Index Fund	Schwab Total Stock Market Index Fund	Schwab U.S. Large-Cap Growth Index Fund
Tax cost	$19,620,605,972	$2,209,781,501	$3,277,588,489	$5,940,422,893	$125,771,617
Gross unrealized appreciation	$19,430,113,785	$6,376,633,248	$1,361,924,461	$3,988,552,684	$16,542,544
Gross unrealized depreciation	(620,386,033)	(42,565,063)	(342,917,789)	(191,780,887)	(1,497,396)
Net unrealized appreciation (depreciation)	$18,809,727,752	$6,334,068,185	$1,019,006,672	$3,796,771,797	$15,045,148

	Schwab U.S. Large-Cap Value Index Fund	Schwab U.S. Mid-Cap Index Fund	Schwab International Index Fund
Tax cost	$167,100,034	$280,694,415	$4,280,943,161
Gross unrealized appreciation	$16,374,870	$29,013,236	$994,303,044
Gross unrealized depreciation	(2,737,527)	(8,515,833)	(265,345,994)
Net unrealized appreciation (depreciation)	$13,637,343	$20,497,403	$728,957,050

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Financial Notes, unaudited(continued)

9. Federal Income Taxes (continued):

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2018, the funds had capital loss carryforwards available to offset future net capital gains as follows:

Expiration Date	Schwab S&P 500 Index Fund	Schwab 1000 Index Fund	Schwab Small-Cap Index Fund	Schwab Total Stock Market Index Fund	Schwab U.S. Large-Cap Growth Index Fund
No expiration	$—	$—	$—	$—	$195,435
Total	$—	$—	$—	$—	$195,435

Expiration Date	Schwab U.S. Large-Cap Value Index Fund	Schwab U.S. Mid-Cap Index Fund	Schwab International Index Fund
No expiration	$—	$—	$99,207,933
Total	$—	$—	$99,207,933

The tax-basis components of distributions and components of distributable earnings on a tax basis are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of April 30, 2019. The tax-basis components of distributions paid during the year ended October 31, 2018 were as follows:

	Schwab S&P 500 Index Fund	Schwab 1000 Index Fund	Schwab Small-Cap Index Fund	Schwab Total Stock Market Index Fund	Schwab U.S. Large-Cap Growth Index Fund
Ordinary income	$554,866,625	$134,342,862	$61,629,828	$118,432,377	$—
Long-term capital gains	—	189,924,986	119,643,043	11,101,631	—

	Schwab U.S. Large-Cap Value Index Fund	Schwab U.S. Mid-Cap Index Fund	Schwab International Index Fund
Ordinary income	$—	$—	$112,933,005
Long-term capital gains	—	—	—

As of October 31, 2018, 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, 2018, 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.

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Investment Advisory Agreement Approval

The Investment Company Act of 1940, as amended, requires that initial approval of, as well as the continuation or amendment of, a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party (the Independent Trustees), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.

At a meeting held on December 11, 2018, the Board of Trustees (the Board or the Trustees, as appropriate), including a majority of the Independent Trustees, considered information specifically relating to its consideration of the approval of an amendment to the investment advisory and administration agreement (the Amendment) between Schwab Capital Trust and Charles Schwab Investment Management, Inc. (CSIM) with respect Schwab Small-Cap Index Fund, Schwab S&P 500 Index Fund, Schwab U.S. Large-Cap Growth Index Fund, Schwab U.S. Large-Cap Value Index Fund and Schwab U.S. Mid-Cap Index Fund (the Funds) to reflect a reduction in the fee paid by the Funds to CSIM as compensation for CSIM’s services rendered to the Funds. The Board reviewed materials provided by CSIM relating to this change (including a representation by CSIM that the change will not result in any

reduction in the nature and level of services provided to the Fund by CSIM) and also took into account the extensive information that the Board reviewed and the conclusions it reached at its April 26, 2018 and June 5, 2018 meetings, in connection with its annual consideration and approval of the continuation of the Funds’ investment advisory and administration agreement. The discussion regarding the information that the Board reviewed and the conclusions it reached at its April 26, 2018 and June 5, 2018 meetings is available in the Funds’ annual report, which covers the period November 1, 2017 through October 31, 2018. Because the Board had conducted a full review of the Funds’ investment advisory and administration agreement at its April 26, 2018 meeting, and intends to conduct another such review at its May 13, 2019 meeting, it limited its discussions at the December 11, 2018 meeting primarily to the proposed Amendment.

Based on the Trustees’ deliberation and their evaluation of the information described above, the Board, including a majority of the Independent Trustees, approved the Amendment with respect to the Funds effective December 20, 2018 and concluded that the compensation payable by the Funds to CSIM under the Amendment is fair and reasonable in light of the services CSIM renders to (and the expenses it bears relating to) the Funds and such other matters as the Trustees considered to be relevant in the exercise of their reasonable judgment.

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Trustees and Officers

The tables below give information about the trustees and officers of Schwab 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 and Laudus Trust. The Fund Complex includes 98 funds.

The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-877-824-5615.

Independent Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	Retired/Private Investor (Jan. 2009 – present). Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) (investment management firm) and President, PIMCO Funds.	98	None
John F. Cogan 1947 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust since 2010; Schwab Strategic Trust since 2016)	Senior Fellow (Oct. 1979 – present), The Hoover Institution at Stanford University (public policy think tank); Senior Fellow (2000 – present), Stanford Institute for Economic Policy Research; Professor of Public Policy (1994 – 2015), Stanford University.	98	Director (2005 – present), Gilead Sciences, Inc.
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018)	President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services).	98	None
Stephen Timothy Kochis 1946 Trustee (Trustee of Schwab Strategic Trust since 2012; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	CEO and Owner (May 2012 – present), Kochis Global (wealth management consulting).	98	None

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Independent Trustees (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016)	Private Investor.	98	Director (2003 – present), Symantec Corporation Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – present), Adamas Pharmaceuticals, Inc.
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019)	Chief Investment Officer (2009-2017), CareGroup Healthcare System, Inc. (healthcare).	98	None
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016)	Retired. Executive Vice President and General Manager of Small Business Group (Dec. 2008 – Sept. 2013), Intuit, Inc. (financial software and services firm for consumers and small businesses).	98	Director (2008 – present), KLA-Tencor Corporation
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016)	Consultant (2008 – present), Patmore Management Consulting (management consulting).	98	None
Gerald B. Smith 1950 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2000; Laudus Trust since 2010; Schwab Strategic Trust since 2016)	Chairman, Chief Executive Officer and Founder (Mar. 1990 – present), Smith Graham & Co. (investment advisors).	98	Director (2012 – present), Eaton

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Interested Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Walter W. Bettinger II² 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010)	Director, President and Chief Executive Officer (Oct. 2008 – present), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – present) and Director (May 2008 – present), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank; Director (Nov. 2017 – present), Charles Schwab Premier Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (July 2016 – present), Charles Schwab Investment Management, Inc.	98	Director (2008 – present), The Charles Schwab Corporation
Jonathan de St. Paer² 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019)	Director and Chief Executive Officer (Apr. 2019 – present) and President (Oct. 2018 – present) Charles Schwab Investment Management, Inc.; Trustee and Chief Executive Officer (Apr. 2019 – present) and President (Nov. 2018 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc.	98	None
Joseph R. Martinetto² 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016)	Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank; Director (Nov. 2017 – present), Charles Schwab Premier Bank; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.	98	None

Officers of the Trust
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served³)	Principal Occupations During the Past Five Years
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018)	Director and Chief Executive Officer (Apr. 2019 – present) and President (Oct. 2018 – present) Charles Schwab Investment Management, Inc.; Trustee and Chief Executive Officer (Apr. 2019 – present) and President (Nov. 2018 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc.

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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
Mark Fischer 1970 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013)	Treasurer and Chief Financial Officer (Jan. 2016 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Funds; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management.
George Pereira 1964 Senior Vice President and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust since 2006; Schwab Strategic Trust since 2009)	Senior Vice President and Chief Financial Officer (Nov. 2004 – present) and Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Operating Officer (Jan. 2016 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Treasurer and Chief Financial Officer (June 2006 – Dec. 2015), Laudus Funds; Treasurer and Principal Financial Officer (Nov. 2004 – Dec. 2015), Schwab Funds; Treasurer and Principal Financial Officer (Oct. 2009 – Dec. 2015), Schwab ETFs; Director (Apr. 2005 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited.
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities and Multi-Asset Strategies (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President and Chief Investment Officer – Equities and Multi-Asset Strategies (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer – Equities and Multi-Asset Strategies (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Head of the Portfolio Management Group and Vice President of Portfolio Management (May 2009 – Apr. 2011), Financial Engines, Inc. (investment management firm); Head of Quantitative Equity (July 2004 – Jan. 2009), ING Investment Management.
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President and Chief Investment Officer – Fixed Income (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer – Fixed Income (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Managing Director, Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm).
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President (Sept. 2011 – present) and Vice President (Mar. 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present) and Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (Apr. 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk (Apr. 2011 – present), Laudus Funds; Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009)	Vice President (July 2005 – present), Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary (Oct. 2009 – present), Schwab ETFs.

¹	Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first.
²	Mr. Bettinger, Mr. de St. Paer and Mr. Martinetto are Interested Trustees. Mr. Bettinger is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc. (CSIM), the investment adviser for the trusts in the Fund Complex, is an employee and director of Charles Schwab & Co., Inc. (CS&Co), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust, and is a director of CSIM. Mr. de St. Paer is an Interested Trustee because he owns stock of CSC and is an employee and director of CSIM. Mr. Martinetto is an Interested Trustee because he owns stock of CSC and is an employee and director of CS&Co.
³	The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.

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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.

Bloomberg Barclays US Aggregate Bond Index An index that is a broad-based benchmark measuring the performance of the U.S. investment grade, taxable bond market, including U.S. Treasuries, government-related and corporate bonds, mortgage pass-through securities, commercial mortgage-backed securities, and asset-backed securities that are publicly available for sale in the United States. To be eligible for inclusion in the index, securities must be fixed rate, non-convertible, U.S. dollar denominated with at least $300 million or more of outstanding face value and have one or more years remaining to maturity. The index excludes certain types of securities, including tax-exempt state and local government series bonds, structured notes embedded with swaps or other special features, private placements, floating rate securities, inflation-linked bonds and Eurobonds. The index is market capitalization weighted and the securities in the index are updated on the last business day of each month.

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

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 which includes all publicly traded stocks of companies headquartered in the United States for which pricing information is readily available. The index is a float-adjusted market capitalization weighted index that reflects the shares of securities actually available to investors in the marketplace.

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 December 20, 2011, the MSCI EAFE Index from December 21, 2011 until the close of business on February 28, 2013, and the MSCI EAFE Index (Net) from March 1, 2013 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 Index (Net) A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets in Europe, Australasia, and the Far East. 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 of 1933 (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 1000 Growth Index An index that 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 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.

Russell 1000 Value 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.

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Russell 2000 Index An index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.

Russell Midcap Index An index that measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap Index is a subset of the Russell 1000 Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership.

S&P 500 Index An index that is designed to measure the performance of 500 leading publicly traded companies from a broad range of industries.

Schwab 1000 Index A float-adjusted market capitalization weighted index developed by Charles Schwab & Co., Inc. that represents the performance of the largest 1,000 publicly traded companies in the United States. As a result of corporate actions, the index may be comprised of more or less than 1,000 securities.

Small-Cap Spliced Index An internally calculated index comprised of the Schwab Small-Cap Index from inception of the Schwab Small-Cap Index 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.

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Notes

Table of Contents

Schwab Equity Index Funds

Charles Schwab Investment Management

With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Charles Schwab Investment Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. The list below shows all currently available Schwab Funds.

Investors should carefully consider information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-877-824-5615 for a prospectus for any Schwab Fund. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab Funds’ website atwww.schwabfunds.com/schwabfunds_prospectus, the SEC’s website atwww.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.

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

The Schwab Funds Family^®

Equity Funds

Schwab Core Equity Fund

Schwab Dividend Equity Fund

Schwab Large-Cap Growth Fund

Schwab Small-Cap Equity Fund

Schwab Hedged Equity Fund

Schwab Health Care Fund

Schwab International Core Equity Fund

Schwab Fundamental US Large Company Index Fund

Schwab Fundamental US Small Company Index Fund

Schwab Fundamental International Large Company Index Fund

Schwab Fundamental International Small Company Index Fund

Schwab Fundamental Emerging Markets Large Company Index Fund

Schwab Fundamental Global Real Estate Index Fund

Schwab Global Real Estate Fund

Schwab S&P 500 Index Fund

Schwab 1000 Index^® Fund

Schwab Small-Cap Index Fund^®

Schwab Total Stock Market Index Fund^®

Schwab U.S. Large-Cap Growth Index Fund

Schwab U.S. Large-Cap Value Index Fund

Schwab U.S. Mid-Cap Index Fund

Schwab International Index Fund^®

Asset Allocation Funds

Schwab Balanced Fund

Schwab MarketTrack Portfolios^®

Schwab Target Funds

Schwab Target Index Funds

Schwab Monthly Income Funds

Bond Funds

Schwab Treasury Inflation Protected Securities Index Fund

Schwab U.S. Aggregate Bond Index Fund

Schwab Short-Term Bond Index Fund

Schwab Tax-Free Bond Fund¹

Schwab California Tax-Free Bond Fund¹

Schwab Money Funds²

Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.

Investment Adviser

Charles Schwab Investment Management, Inc.

211 Main Street, San Francisco, CA 94105

Funds

Schwab Funds^®

1-877-824-5615

State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.

You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time.

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MFR13562-23
00230104

Semiannual Report | April 30, 2019

Schwab Active Equity Funds

Schwab Core Equity Fund

Schwab Dividend Equity Fund

Schwab Large-Cap Growth Fund

Schwab Small-Cap Equity Fund

Schwab Hedged Equity Fund

Schwab Health Care Fund

Schwab International Core Equity Fund

New Notice Regarding Shareholder Report Delivery Options

If you would like to receive a fund’s future shareholder reports in paper free of charge after January 1, 2021, you can make that request:

• If you invest through Charles Schwab & Co, Inc. (broker-dealer), by calling 1-866-345-5954 and using the unique identifier attached to this mailing;

• If you invest through another financial intermediary (such as a bank or broker-dealer) by contacting them directly; or

• If owned directly through a fund by calling 1-800-407-0256.

If you already receive shareholder reports and other fund documents electronically, you will not be affected by this change and you need not take any action.

This page is intentionally left blank.

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 Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab. The Industry classifications used in the schedules of Portfolio Holdings are sub-categories of Sector classifications.

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Schwab Active Equity Funds

Performance at a Glance

Total Return for the 6 Months Ended April 30, 2019
Schwab Core Equity Fund (Ticker Symbol: SWANX)	8.84%
S&P 500^® Index	9.76%
Fund Category: Morningstar Large Blend¹	9.02%
Performance Details	pages 8-9

Schwab Dividend Equity Fund (Ticker Symbol: SWDSX)	7.17%
Russell 1000^® Value Index	7.90%
Fund Category: Morningstar Large Value¹	6.85%
Performance Details	pages 10-11

Schwab Large-Cap Growth Fund (Ticker Symbol: SWLSX)	9.82%
Russell 1000^® Growth Index	12.09%
Fund Category: Morningstar Large Growth¹	12.15%
Performance Details	pages 12-13

Schwab Small-Cap Equity Fund (Ticker Symbol: SWSCX)	4.28%
Russell 2000^® Index	6.06%
Fund Category: Morningstar Small Blend¹	5.23%
Performance Details	pages 14-15

Total Return for the 6 Months Ended April 30, 2019
Schwab Hedged Equity Fund (Ticker Symbol: SWHEX)	0.16%
S&P 500^® Index	9.76%
Fund Category: Morningstar Long-Short Equity¹	3.44%
Performance Details	pages 16-17

Schwab Health Care Fund² (Ticker Symbol: SWHFX)	1.20%
Dow Jones Global Health Care Index	2.57%
Fund Category: Morningstar Health¹	1.74%
Performance Details	pages 18-19

Schwab International Core Equity Fund² (Ticker Symbol: SICNX)	6.22%
MSCI EAFE^® Index (Net)³	7.45%
Fund Category: Morningstar Foreign Large Blend¹	7.76%
Performance Details	pages 20-21

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.

¹	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date.
²	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.
³	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.

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Schwab Active Equity Funds

From the President

Jonathan de St. Paer
President and CEO of
Charles Schwab Investment
Management, Inc. and the
funds covered in this report.

Dear Shareholder,

As investors, we will always be faced with market headwinds or tailwinds. At Charles Schwab Investment Management, we believe the challenge is to not let these ups and downs unduly influence investment decisions. As the adage goes, time in the market is more important than timing the market. That’s why having a long-term investing plan and a portfolio based on your individual goals and risk tolerance is important. We aim to offer products with clear objectives, straightforward pricing, and a consistent approach to investing—all of which are designed to help make it easier for investors to stay invested and focused on their long-term goals.

The Schwab Active Equity Funds are an important part of that approach. The funds’ investment team uses an integrated investment process that combines quantitative and qualitative research and analysis through a bottom-up approach to stock selection. When selecting stocks of companies for the funds’ investments, the investment team looks for stocks that have strong fundamentals, attractive valuation, and recognized momentum in earnings and price performance. Stocks are not sold reflexively, since the funds’ focus is generating consistent, risk-adjusted excess returns over the long-term. But the investment team is constantly evaluating each holding and may make a change if they feel a stock’s price, risk profile, and other characteristics are unattractive relative to other potential investment opportunities.

Relying on a disciplined process, along with an integrated approach to stock selection, enables the Schwab Active Equity Funds to incorporate near-term market developments without letting them dominate portfolio decisions. As with all of the investment products we offer, the funds are designed to seek steady, reliable results. And, recently, we made it easier for any investor to gain access to the funds regardless of how much they invest with us. Effective

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From the President(continued)

“Effective January 16, 2019, the minimum initial investment was eliminated, reflecting our commitment to eliminating entry barriers and reducing unnecessary complexity for investors.”

January 16, 2019, the minimum initial investment was eliminated, reflecting our commitment to eliminating entry barriers and reducing unnecessary complexity for investors. That’s been a cornerstone of our philosophy—and it will continue to be.

On April 1, 2019, I transitioned into the role of Chief Executive Officer of Charles Schwab Investment Management, replacing Marie Chandoha upon her retirement. Looking back at how Charles Schwab Investment Management has grown into the market leader it is today, I believe Marie deserves particular credit. As CEO for over eight years, Marie provided the vision and leadership that has helped us stay focused on the goal of giving investors what they want and need, without unnecessary complexity. It’s been my privilege to be part of the great team Marie built, and I look forward to furthering our organization’s important mission.

Thank you for investing with Charles Schwab Investment Management, and for trusting us to help you achieve your financial goals. For more information about the Schwab Active Equity Funds, please continue reading this report. In addition, you can find further details about these funds by visiting our website at www.schwabfunds.com. We are also happy to hear from you at 1-877-824-5615.

Sincerely,

Management views may have changed since the report date.

*	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.

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Schwab Active Equity Funds

The Investment Environment

Asset Class Performance Comparison % returns during the 6 months ended April 30, 2019

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 may have changed since the report date.

*	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.

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Schwab Active Equity Funds

The Investment Environment(continued)

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Schwab Active Equity Funds

Fund Management

Jonas Svallin, CFA, Vice President and Head of Active Equities, 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 to 2009, Mr. Svallin was a principal and head portfolio manager at Algert Coldiron Investors LLC (now known as Algert Global). Prior to joining Algert, 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, 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, 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 (now known as Allianz Global Investors) 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.

Holly Emerson, CFA, Portfolio Manager, is responsible for the day-to-day co-management of the Schwab Large-Cap Growth Fund and the Schwab Dividend Equity Fund. Previously, she served as an Associate Portfolio Manager supporting the Schwab Active Equity Funds. Prior to joining CSIM in 2014, Ms. Emerson spent nearly 10 years at Algert Global (formerly Algert Coldiron Investors), a quantitative market neutral hedge fund manager, where she held a number of positions, including Assistant Portfolio Manager and Macroeconomic Research Analyst. In her various roles, she supported both U.S. and International funds and acted as the lead portfolio manager for the Canadian fund.

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Schwab Core Equity Fund

Average Annual Total Returns^1,2

Fund and Inception Date	6 Months	1 Year	5 Years	10 Years
Fund: Schwab Core Equity Fund (7/1/96)	8.84%	8.70%	10.01%	13.53%
S&P 500^® Index	9.76%	13.49%	11.63%	15.32%
Fund Category: Morningstar Large Blend³	9.02%	10.88%	9.71%	13.89%
Fund Expense Ratio⁴: 0.73%

For index definitions, please see the Glossary.

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	On May 21, 2009 and September 7, 2012, the Laudus U.S. MarketMasters Fund and the Schwab Premier Equity Fund, respectively, merged into the fund.
³	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date.
⁴	As stated in the prospectus. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.

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Schwab Core Equity Fund

Performance and Fund Factsas of April 30, 2019

Statistics¹

Number of Holdings	129
Weighted Average Market Cap (millions)	$241,753
Price/Earnings Ratio (P/E)	17.2
Price/Book Ratio (P/B)	3.3
Portfolio Turnover Rate	53%²

Sector Weightings % of Investments³

Top Equity Holdings % of Net Assets⁴

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S& P and MSCI.

¹	Excludes derivatives.
²	Not annualized.
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
⁴	This list is not a recommendation of any security by the investment adviser.

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Schwab Dividend Equity Fund

Average Annual Total Returns^1,2

Fund and Inception Date	6 Months	1 Year	5 Years	10 Years
Fund: Schwab Dividend Equity Fund (9/2/03)	7.17%	5.25%	6.56%	12.17%
Russell 1000^® Value Index	7.90%	9.06%	8.27%	13.76%
Dividend Equity Spliced Index	7.90%	9.06%	9.03%	13.97%
S&P 500^® Index	9.76%	13.49%	11.63%	15.32%
Fund Category: Morningstar Large Value³	6.85%	7.41%	7.75%	12.88%
Fund Expense Ratio⁴: 0.88%

Yields¹

30-Day SEC Yield

1.57%

The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.

For index definitions, please see the Glossary.

¹	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	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.
³	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date.
⁴	As stated in the prospectus. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.

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Schwab Dividend Equity Fund

Performance and Fund Factsas of April 30, 2019

Statistics

Number of Holdings	131
Weighted Average Market Cap (millions)	$109,733
Price/Earnings Ratio (P/E)	15.1
Price/Book Ratio (P/B)	2.2
Portfolio Turnover Rate	36%¹

Sector Weightings % of Investments²

Top Equity Holdings % of Net Assets³

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S& P and MSCI.

¹	Not annualized.
²	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
³	This list is not a recommendation of any security by the investment adviser.

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Schwab Large-Cap Growth Fund

Average Annual Total Returns^1,2

Fund and Inception Date	6 Months	1 Year	5 Years	10 Years
Fund: Schwab Large-Cap Growth Fund (10/3/05)	9.82%	10.80%	11.79%	14.56%
Russell 1000^® Growth Index	12.09%	17.43%	14.50%	16.96%
Fund Category: Morningstar Large Growth³	12.15%	14.77%	12.46%	15.23%
Fund Expense Ratios⁴: Net 0.99%; Gross 1.02%

For index definitions, please see the Glossary.

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	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.
³	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date.
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 investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.

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Schwab Large-Cap Growth Fund

Performance and Fund Factsas of April 30, 2019

Statistics¹

Number of Holdings	117
Weighted Average Market Cap (millions)	$336,764
Price/Earnings Ratio (P/E)	20.5
Price/Book Ratio (P/B)	5.5
Portfolio Turnover Rate	33%²

Sector Weightings % of Investments³

Top Equity Holdings % of Net Assets⁴

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S& P and MSCI.

¹	Excludes derivatives.
²	Not annualized.
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
⁴	This list is not a recommendation of any security by the investment adviser.

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Schwab Small-Cap Equity Fund

Average Annual Total Returns^1,2

Fund and Inception Date	6 Months	1 Year	5 Years	10 Years
Fund: Schwab Small-Cap Equity Fund (7/1/03)	4.28%	2.80%	7.73%	14.86%
Russell 2000^® Index	6.06%	4.61%	8.63%	14.10%
Fund Category: Morningstar Small Blend³	5.23%	3.23%	7.00%	13.39%
Fund Expense Ratio⁴: 1.09%

For index definitions, please see the Glossary.

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	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.
³	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date.
⁴	As stated in the prospectus. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.

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Schwab Small-Cap Equity Fund

Performance and Fund Factsas of April 30, 2019

Statistics¹

Number of Holdings	289
Weighted Average Market Cap (millions)	$2,053
Price/Earnings Ratio (P/E)	15.9
Price/Book Ratio (P/B)	2.2
Portfolio Turnover Rate	56%²

Sector Weightings % of Investments³

Top Equity Holdings % of Net Assets⁴

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	Excludes derivatives.
²	Not annualized.
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
⁴	This list is not a recommendation of any security by the investment adviser.

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Schwab Hedged Equity Fund

Average Annual Total Returns^1,2

Fund and Inception Date	6 Months	1 Year	5 Years	10 Years
Fund: Schwab Hedged Equity Fund (9/3/02)	0.16%	-1.07%	5.34%	7.84%
S&P 500^® Index	9.76%	13.49%	11.63%	15.32%
Fund Category: Morningstar Long-Short Equity³	3.44%	1.62%	3.28%	6.63%
Fund Expense Ratio⁴: 1.67%

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.

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	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.
³	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date.
⁴	As stated in the prospectus. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.

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Schwab Hedged Equity Fund

Performance and Fund Factsas of April 30, 2019

Statistics

Number of Holdings
Long Holdings	178
Short Holdings	84
Weighted Average Market Cap (millions)
Long Holdings	$169,326
Short Holdings	$9,026
Price/Earnings Ratio (P/E)
Long Holdings	15.7
Short Holdings	20.4
Price/Book Ratio (P/B)
Long Holdings	2.7
Short Holdings	2.4
Portfolio Turnover Rate including short sales	86%¹
Portfolio Turnover Rate excluding short sales	49%¹

Top Equity Long Holdings % of Net Assets²

Top Equity Short Holdings % of Net Assets²

Portfolio holdings may have changed since the report date.

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

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Schwab Health Care Fund

Average Annual Total Returns¹

Fund and Inception Date	6 Months	1 Year	5 Years	10 Years
Fund: Schwab Health Care Fund (7/3/00)	1.20%	8.37%	9.26%	15.87%
Dow Jones Global Health Care Index	2.57%	8.26%	8.41%	14.42%
S&P 500^® Index	9.76%	13.49%	11.63%	15.32%
Fund Category: Morningstar Health²	1.74%	6.84%	9.87%	16.45%
Fund Expense Ratio³: 0.80%

The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.

For index definitions, please see the Glossary.

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

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

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 fund operating expenses without contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.

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Schwab Health Care Fund

Performance and Fund Factsas of April 30, 2019

Statistics¹

Number of Holdings	112
Weighted Average Market Cap (millions)	$124,457
Price/Earnings Ratio (P/E)	22.1
Price/Book Ratio (P/B)	4.2
Portfolio Turnover Rate	22%²

Industry Weightings % of Investments

Top Equity Holdings % of Net Assets³

Portfolio holdings may have changed since the report date.

Source of Industry Classification: S&P and MSCI.

¹	Excludes derivatives.
²	Not annualized.
³	This list is not a recommendation of any security by the investment adviser.

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Schwab International Core Equity Fund

Average Annual Total Returns^1,2

Fund and Inception Date	6 Months	1 Year	5 Years	10 Years
Fund: Schwab International Core Equity Fund (5/30/08)	6.22%	-7.83%	2.19%	8.95%
MSCI EAFE^® Index (Net)³	7.45%	-3.22%	2.60%	7.95%
Fund Category: Morningstar Foreign Large Blend⁴	7.76%	-3.71%	2.52%	7.56%
Fund Expense Ratios⁵: Net 0.86%; Gross 0.89%

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	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.
³	The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
⁴	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date.
⁵	As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.

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Schwab International Core Equity Fund

Performance and Fund Factsas of April 30, 2019

Statistics

Number of Holdings	215
Weighted Average Market Cap (millions)	$63,386
Price/Earnings Ratio (P/E)	13.2
Price/Book Ratio (P/B)	1.7
Portfolio Turnover Rate	43%¹

Sector Weightings % of Investments

Top Equity Holdings % of Net Assets²

Top Country Weightings % of Investments³

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.
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.

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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; and (2) ongoing costs, including management fees, transfer agent and shareholder services fees, and other fund expenses.

	Expense Ratio (Annualized)¹	Beginning Account Value at 11/1/18	Ending Account Value (Net of Expenses) at 4/30/19	Expenses Paid During Period 11/1/18-4/30/19²
Schwab Core Equity Fund
Actual Return	0.73%	$1,000.00	$1,088.40	$3.78
Hypothetical 5% Return	0.73%	$1,000.00	$1,021.18	$3.66
Schwab Dividend Equity Fund
Actual Return	0.88%	$1,000.00	$1,071.70	$4.52
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	$1,098.20	$5.15
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	$1,042.80	$5.52
Hypothetical 5% Return	1.09%	$1,000.00	$1,019.39	$5.46
Schwab Hedged Equity Fund³
Actual Return	1.86%	$1,000.00	$1,001.60	$9.23
Hypothetical 5% Return	1.86%	$1,000.00	$1,015.58	$9.30
Schwab Health Care Fund
Actual Return	0.80%	$1,000.00	$1,012.00	$3.99
Hypothetical 5% Return	0.80%	$1,000.00	$1,020.83	$4.01
Schwab International Core Equity Fund
Actual Return	0.86%	$1,000.00	$1,062.20	$4.40
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.
³	Schwab Hedged Equity Fund’s expense ratio includes dividend expenses paid on securities sold short.

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Schwab Core Equity Fund

Financial Statements

Financial Highlights

	11/1/18– 4/30/19*	11/1/17– 10/31/18	11/1/16– 10/31/17	11/1/15– 10/31/16	11/1/14– 10/31/15	11/1/13– 10/31/14
Per-Share Data
Net asset value at beginning of period	$22.40	$24.36	$19.65	$23.10	$25.48	$23.46
Income (loss) from investment operations:
Net investment income (loss)	0.13¹	0.26¹	0.34¹	0.38¹	0.30¹	0.30
Net realized and unrealized gains (losses)	1.45	0.41	4.71	(0.52)	1.05	3.60
Total from investment operations	1.58	0.67	5.05	(0.14)	1.35	3.90
Less distributions:
Distributions from net investment income	(0.27)	(0.34)	(0.34)	(0.36)	(0.33)	(0.22)
Distributions from net realized gains	(2.46)	(2.29)	—	(2.95)	(3.40)	(1.66)
Total distributions	(2.73)	(2.63)	(0.34)	(3.31)	(3.73)	(1.88)
Net asset value at end of period	$21.25	$22.40	$24.36	$19.65	$23.10	$25.48
Total return	8.84%²	2.71%	26.00%	(0.50%)	5.61%	17.88%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.73%³	0.73%	0.73%	0.73%	0.74%	0.72%
Gross operating expenses	0.73%³	0.73%	0.74%	0.73%	0.74%	0.72%
Net investment income (loss)	1.26%³	1.12%	1.53%	1.93%	1.29%	1.19%
Portfolio turnover rate	53%²	101%	86%	80%	81%	63%
Net assets, end of period (x 1,000,000)	$2,231	$2,138	$2,353	$2,075	$2,363	$2,317

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Not annualized.

Annualized.

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See financial notes

Table of Contents

Schwab Core Equity Fund

Portfolio Holdings as of April 30, 2019 (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 U.S. Securities and Exchange Commission (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 atwww.sec.gov. Effective March 31, 2019, Form N-PORT Part F has replaced Form N-Q. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website atwww.schwabfunds.com/schwabfunds_prospectus.

Security	Number of Shares	Value ($)
Common Stock98.9% of net assets

Automobiles & Components 0.7%
Lear Corp.	112,807	16,131,401

Banks 4.3%
Bank of America Corp.	461,564	14,114,627
CIT Group, Inc.	68,653	3,657,145
Citigroup, Inc.	455,024	32,170,197
JPMorgan Chase & Co.	231,903	26,912,343
MGIC Investment Corp. *	240,001	3,513,615
Regions Financial Corp.	782,206	12,147,659
The PNC Financial Services Group, Inc.	27,873	3,816,650
		96,332,236

Capital Goods 6.3%
Allison Transmission Holdings, Inc.	672,046	31,492,076
Caterpillar, Inc.	78,457	10,938,475
Dover Corp.	127,927	12,541,963
Honeywell International, Inc.	53,157	9,229,650
Illinois Tool Works, Inc.	29,748	4,629,681
Lennox International, Inc.	7,806	2,118,939
Masco Corp.	657,675	25,688,785
Oshkosh Corp.	137,157	11,327,797
Spirit AeroSystems Holdings, Inc., Class A	52,407	4,554,168
The Boeing Co.	71,477	26,996,148
		139,517,682

Commercial & Professional Services 1.0%
Robert Half International, Inc.	366,803	22,774,798

Consumer Durables & Apparel 2.3%
Kering S.A. ADR	37,842	2,222,271
NIKE, Inc., Class B	28,609	2,512,728
PulteGroup, Inc.	654,121	20,578,647
Sony Corp. ADR	425,442	21,429,514
Whirlpool Corp.	34,195	4,746,950
		51,490,110

Consumer Services 1.7%
Darden Restaurants, Inc.	166,042	19,526,539
McDonald's Corp.	27,545	5,442,066
Starbucks Corp.	156,135	12,128,567
		37,097,172

Diversified Financials 6.2%
Affiliated Managers Group, Inc.	125,294	13,897,611
Ally Financial, Inc.	137,043	4,071,548
Ameriprise Financial, Inc.	118,464	17,386,961
Capital One Financial Corp.	355,907	33,038,847
Discover Financial Services	189,831	15,469,328
E*TRADE Financial Corp.	98,415	4,985,704
Evercore, Inc., Class A	137,289	13,376,067
LPL Financial Holdings, Inc.	59,469	4,406,058

Security	Number of Shares	Value ($)
Morgan Stanley	254,312	12,270,554
Morningstar, Inc.	42,207	6,054,594
Synchrony Financial	354,995	12,307,677
		137,264,949

Energy 4.2%
Chevron Corp.	346,821	41,639,329
ConocoPhillips	585,510	36,957,391
Patterson-UTI Energy, Inc.	217,606	2,957,265
Phillips 66	79,192	7,465,430
Valero Energy Corp.	41,566	3,768,374
		92,787,789

Food & Staples Retailing 0.7%
The Kroger Co.	140,698	3,627,195
Walmart, Inc.	108,430	11,150,941
		14,778,136

Food, Beverage & Tobacco 3.6%
Ingredion, Inc.	115,071	10,902,977
Nestle S.A. ADR	81,117	7,830,224
PepsiCo, Inc.	308,105	39,452,845
Tyson Foods, Inc., Class A	309,863	23,242,824
		81,428,870

Health Care Equipment & Services 5.0%
Anthem, Inc.	38,557	10,141,648
Baxter International, Inc.	58,756	4,483,083
HCA Healthcare, Inc.	193,243	24,586,307
Hill-Rom Holdings, Inc.	192,420	19,515,236
Hologic, Inc. *	172,485	7,999,854
McKesson Corp.	26,351	3,142,357
Molina Healthcare, Inc. *	75,459	9,781,750
Omnicell, Inc. *	37,030	2,975,731
UnitedHealth Group, Inc.	42,333	9,866,552
Varian Medical Systems, Inc. *	136,177	18,543,222
		111,035,740

Household & Personal Products 1.9%
Kimberly-Clark Corp.	327,895	42,095,160

Insurance 2.4%
Aflac, Inc.	256,730	12,934,058
MetLife, Inc.	94,271	4,348,721
The Allstate Corp.	251,335	24,897,245
The Travelers Cos., Inc.	72,805	10,465,719
		52,645,743

Materials 3.7%
BHP Group plc ADR	346,819	16,345,579
Celanese Corp.	333,168	35,945,496
Domtar Corp.	72,237	3,532,389
Ingevity Corp. *	38,769	4,458,823

₂₄

Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Core Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	Value ($)
Steel Dynamics, Inc.	340,681	10,792,774
The Sherwin-Williams Co.	27,194	12,368,647
		83,443,708

Media & Entertainment 8.7%
Alphabet, Inc., Class A *	54,115	64,881,720
Alphabet, Inc., Class C *	10,791	12,824,888
Discovery, Inc., Class A *	111,175	3,435,308
Facebook, Inc., Class A *	120,613	23,326,554
IAC/InterActiveCorp *	53,858	12,109,433
Live Nation Entertainment, Inc. *	156,216	10,207,153
Tencent Holdings Ltd. ADR	134,940	6,644,446
The Walt Disney Co.	366,885	50,252,238
Viacom, Inc., Class B	378,909	10,954,259
		194,635,999

Pharmaceuticals, Biotechnology & Life Sciences 7.6%
Alexion Pharmaceuticals, Inc. *	189,312	25,771,042
Amgen, Inc.	146,320	26,238,102
Biogen, Inc. *	35,644	8,171,031
Charles River Laboratories International, Inc. *	61,769	8,676,691
Gilead Sciences, Inc.	164,720	10,713,389
Jazz Pharmaceuticals plc *	88,893	11,535,645
Johnson & Johnson	232,518	32,831,542
Merck & Co., Inc.	127,303	10,020,019
Novartis AG ADR	187,775	15,440,738
Novo Nordisk A/S ADR	128,184	6,282,298
Regeneron Pharmaceuticals, Inc. *	28,385	9,740,029
Waters Corp. *	17,358	3,706,627
		169,127,153

Real Estate 3.2%
American Tower Corp.	167,143	32,643,028
CBRE Group, Inc., Class A *	63,037	3,282,336
Outfront Media, Inc.	564,571	13,453,727
PS Business Parks, Inc.	22,068	3,390,086
Simon Property Group, Inc.	109,481	19,016,850
		71,786,027

Retailing 7.1%
Amazon.com, Inc. *	46,650	89,872,158
AutoZone, Inc. *	27,495	28,273,383
Best Buy Co., Inc.	121,658	9,052,572
Lowe's Cos., Inc.	108,555	12,281,913
The Home Depot, Inc.	17,980	3,662,526
The TJX Cos., Inc.	288,137	15,812,959
		158,955,511

Semiconductors & Semiconductor Equipment 2.6%
Intel Corp.	731,523	37,336,934
Lam Research Corp.	30,468	6,319,977
Micron Technology, Inc. *	334,713	14,078,029
		57,734,940

Software & Services 14.7%
Accenture plc, Class A	122,820	22,435,529
Adobe, Inc. *	35,270	10,201,848

Security	Number of Shares	Value ($)
Akamai Technologies, Inc. *	195,756	15,672,225
Automatic Data Processing, Inc.	111,953	18,403,954
Cadence Design Systems, Inc. *	205,999	14,292,211
Fortinet, Inc. *	93,603	8,744,392
Intuit, Inc.	89,546	22,481,419
Mastercard, Inc., Class A	55,148	14,020,828
MAXIMUS, Inc.	30,093	2,216,349
Microsoft Corp.	909,805	118,820,533
Oracle Corp.	206,838	11,444,347
PayPal Holdings, Inc. *	43,812	4,940,679
VeriSign, Inc. *	206,121	40,698,591
Visa, Inc., Class A	149,959	24,657,758
		329,030,663

Technology Hardware & Equipment 5.3%
Apple, Inc.	456,571	91,620,102
Cisco Systems, Inc.	477,728	26,728,882
		118,348,984

Telecommunication Services 0.6%
Verizon Communications, Inc.	244,358	13,974,834

Transportation 0.8%
United Continental Holdings, Inc. *	205,066	18,222,165

Utilities 4.3%
CenterPoint Energy, Inc.	211,740	6,563,940
Exelon Corp.	864,717	44,057,331
NRG Energy, Inc.	549,812	22,635,760
Portland General Electric Co.	315,276	16,492,088
UGI Corp.	117,159	6,386,337
		96,135,456
Total Common Stock
(Cost $1,714,059,134)		2,206,775,226

Other Investment Company0.6% of net assets

Money Market Fund 0.6%
State Street Institutional U.S. Government Money Market Fund, Premier Class 2.37%(a)	13,427,861	13,427,861
Total Other Investment Company
(Cost $13,427,861)		13,427,861

*	Non-income producing security.
(a)	The rate shown is the 7-day yield.

ADR —

American Depositary Receipt

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Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Core Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2019 (see financial note 2(a) for additional information):

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Assets
Common Stock¹	$2,206,775,226	$—	$—	$2,206,775,226
Other Investment Company¹	13,427,861	—	—	13,427,861
Futures Contracts²	105,923	—	—	105,923
Total	$2,220,309,010	$—	$—	$2,220,309,010

¹	As categorized in Portfolio Holdings.
²	Futures contracts are valued at unrealized appreciation or depreciation.

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Table of Contents

Schwab Core Equity Fund

Statement of Assets and Liabilities

As of April 30, 2019; unaudited

Assets
Investments in unaffiliated issuers, at value (cost $1,727,486,995)		$2,220,203,087
Deposit with broker for futures contracts		3,300,000
Receivables:
Investments sold		53,075,186
Dividends		1,090,173
Fund shares sold		283,536
Variation margin on futures contracts		11,200
Prepaid expenses	+	24,205
Total assets		2,277,987,387
Liabilities
Payables:
Investments bought		44,652,466
Investment adviser and administrator fees		854,123
Shareholder service fees		443,414
Fund shares redeemed		518,206
Accrued expenses	+	199,116
Total liabilities		46,667,325
Net Assets
Total assets		2,277,987,387
Total liabilities	–	46,667,325
Net assets		$2,231,320,062
Net Assets by Source
Capital received from investors		1,761,381,444
Total distributable earnings		469,938,618

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$2,231,320,062		105,002,107		$21.25

₂₇

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Table of Contents

Schwab Core Equity Fund

Statement of Operations

For the period November 1, 2018 through April 30, 2019; unaudited

Investment Income
Dividends		$20,749,454
Securities on loan, net	+	44,251
Total investment income		20,793,705
Expenses
Investment adviser and administrator fees		4,920,132
Shareholder service fees		2,552,740
Shareholder reports		31,300
Portfolio accounting fees		30,797
Custodian fees		26,817
Transfer agent fees		21,846
Registration fees		19,641
Professional fees		19,020
Independent trustees’ fees		8,843
Other expenses	+	13,984
Total expenses		7,645,120
Expense reduction by CSIM and its affiliates	–	21,846
Net expenses	–	7,623,274
Net investment income		13,170,431
Realized and Unrealized Gains (Losses)
Net realized losses on investments		(28,375,902)
Net realized gains on futures contracts	+	1,101,584
Net realized losses		(27,274,318)
Net change in unrealized appreciation (depreciation) on investments		199,780,765
Net change in unrealized appreciation (depreciation) on futures contracts	+	105,923
Net change in unrealized appreciation (depreciation)	+	199,886,688
Net realized and unrealized gains		172,612,370
Increase in net assets resulting from operations		$185,782,801

₂₈

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Table of Contents

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
	11/1/18-4/30/19		11/1/17-10/31/18
Net investment income		$13,170,431	$26,089,047
Net realized gains (losses)		(27,274,318)	232,323,847
Net change in unrealized appreciation (depreciation)	+	199,886,688	(184,772,120)
Increase in net assets from operations		185,782,801	73,640,774
Distributions to Shareholders
Total distributions		($258,813,892)	($252,002,689)

Transactions in Fund Shares
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	VALUE	SHARES	VALUE
Shares sold		10,273,946	$193,752,996	5,037,106	$115,966,940
Shares reinvested		10,439,291	193,753,240	8,268,646	186,127,214
Shares redeemed	+	(11,187,218)	(221,646,955)	(14,419,212)	(338,357,426)
Net transactions in fund shares		9,526,019	$165,859,281	(1,113,460)	($36,263,272)
Shares Outstanding and Net Assets
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		95,476,088	$2,138,491,872	96,589,548	$2,353,117,059
Total increase or decrease	+	9,526,019	92,828,190	(1,113,460)	(214,625,187)
End of period		105,002,107	$2,231,320,062	95,476,088	$2,138,491,872

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Table of Contents

Schwab Dividend Equity Fund

Financial Statements

Financial Highlights

	11/1/18– 4/30/19*	11/1/17– 10/31/18	11/1/16– 10/31/17	11/1/15– 10/31/16	11/1/14– 10/31/15	11/1/13– 10/31/14
Per-Share Data
Net asset value at beginning of period	$15.43	$17.21	$14.39	$16.43	$19.17	$18.22
Income (loss) from investment operations:
Net investment income (loss)	0.13¹	0.22¹	0.29¹	0.31¹	0.29¹	0.27
Net realized and unrealized gains (losses)	0.81	(0.27)	2.75	(0.29)	(0.21)	2.16
Total from investment operations	0.94	(0.05)	3.04	0.02	0.08	2.43
Less distributions:
Distributions from net investment income	(0.13)	(0.30)	(0.22)	(0.32)	(0.27)	(0.29)
Distributions from net realized gains	(1.28)	(1.43)	—	(1.74)	(2.55)	(1.19)
Total distributions	(1.41)	(1.73)	(0.22)	(2.06)	(2.82)	(1.48)
Net asset value at end of period	$14.96	$15.43	$17.21	$14.39	$16.43	$19.17
Total return	7.17%²	(0.63%)	21.19%	0.26%	0.12%	14.26%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.88%³	0.88%	0.88%	0.88%	0.88%	0.89%
Gross operating expenses	0.89%³	0.88%	0.88%	0.89%	0.88%	0.89%
Net investment income (loss)	1.82%³	1.36%	1.78%	2.18%	1.71%	1.47%
Portfolio turnover rate	36%²	79%	70%	74%	73%	72%
Net assets, end of period (x 1,000,000)	$904	$1,249	$1,469	$1,560	$1,872	$2,053

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Not annualized.

Annualized.

₃₀

Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Dividend Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited)

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

Security	Number of Shares	Value ($)
Common Stock99.8% of net assets

Automobiles & Components 0.9%
Dana, Inc.	137,401	2,679,320
Lear Corp.	39,717	5,679,531
		8,358,851

Banks 10.2%
Bank of America Corp.	76,267	2,332,245
CIT Group, Inc.	209,643	11,167,682
Citigroup, Inc.	356,710	25,219,397
JPMorgan Chase & Co.	206,173	23,926,377
MGIC Investment Corp. *	365,195	5,346,455
Regions Financial Corp.	911,618	14,157,427
The PNC Financial Services Group, Inc.	76,717	10,504,859
		92,654,442

Capital Goods 6.4%
Allison Transmission Holdings, Inc.	321,049	15,044,356
Dover Corp.	44,482	4,361,015
Huntington Ingalls Industries, Inc.	4,688	1,043,455
Illinois Tool Works, Inc.	15,150	2,357,794
Masco Corp.	397,709	15,534,514
Spirit AeroSystems Holdings, Inc., Class A	83,510	7,257,019
The Boeing Co.	31,782	12,003,744
		57,601,897

Commercial & Professional Services 1.6%
ManpowerGroup, Inc.	21,564	2,071,006
Robert Half International, Inc.	202,676	12,584,153
		14,655,159

Consumer Durables & Apparel 0.3%
Sony Corp. ADR	47,030	2,368,901

Consumer Services 2.4%
Darden Restaurants, Inc.	29,117	3,424,159
H&R Block, Inc.	35,422	963,833
McDonald's Corp.	25,821	5,101,455
SeaWorld Entertainment, Inc. *	38,198	1,016,831
Starbucks Corp.	81,814	6,355,311
The Cheesecake Factory, Inc.	38,621	1,916,374
Wyndham Destinations, Inc.	61,327	2,671,404
		21,449,367

Diversified Financials 9.3%
Affiliated Managers Group, Inc.	115,208	12,778,871
Ameriprise Financial, Inc.	47,425	6,960,567
Berkshire Hathaway, Inc., Class B *	38,700	8,386,677
Capital One Financial Corp.	194,154	18,023,316
Discover Financial Services	37,254	3,035,828
Evercore, Inc., Class A	49,942	4,865,849
Lazard Ltd., Class A	151,268	5,881,300
Legg Mason, Inc.	17,900	598,755

Security	Number of Shares	Value ($)
Morgan Stanley	226,119	10,910,242
Navient Corp.	274,260	3,705,253
Synchrony Financial	253,852	8,801,049
		83,947,707

Energy 8.8%
Chevron Corp.	259,600	31,167,576
ConocoPhillips	314,773	19,868,472
CVR Energy, Inc.	57,086	2,603,693
Exxon Mobil Corp.	268,269	21,536,635
PBF Energy, Inc., Class A	54,722	1,837,565
Valero Energy Corp.	32,396	2,937,021
		79,950,962

Food & Staples Retailing 0.2%
Walmart, Inc.	14,480	1,489,123

Food, Beverage & Tobacco 4.7%
Flowers Foods, Inc.	136,896	2,976,119
Ingredion, Inc.	88,731	8,407,262
Nestle S.A. ADR	32,953	3,180,953
PepsiCo, Inc.	110,225	14,114,311
Philip Morris International, Inc.	25,028	2,166,424
Tyson Foods, Inc., Class A	152,163	11,413,747
		42,258,816

Health Care Equipment & Services 4.9%
Anthem, Inc.	5,624	1,479,281
Cardinal Health, Inc.	99,501	4,846,694
HCA Healthcare, Inc.	80,212	10,205,373
Hill-Rom Holdings, Inc.	29,489	2,990,774
Hologic, Inc. *	158,887	7,369,179
Integer Holdings Corp. *	17,600	1,215,984
McKesson Corp.	34,451	4,108,282
Medtronic plc	70,745	6,282,863
Varian Medical Systems, Inc. *	42,799	5,827,940
		44,326,370

Household & Personal Products 2.9%
Kimberly-Clark Corp.	133,877	17,187,129
The Procter & Gamble Co.	85,905	9,147,165
		26,334,294

Insurance 4.7%
Aflac, Inc.	181,140	9,125,833
Allianz SE ADR	79,896	1,927,092
First American Financial Corp.	42,059	2,399,887
MetLife, Inc.	61,834	2,852,402
The Allstate Corp.	151,297	14,987,481
The Travelers Cos., Inc.	75,734	10,886,762
		42,179,457

₃₁

Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Dividend Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	Value ($)
Materials 3.8%
BHP Group plc ADR	99,711	4,699,379
Celanese Corp.	141,965	15,316,604
Domtar Corp.	105,006	5,134,793
Huntsman Corp.	82,603	1,837,091
International Paper Co.	19,533	914,340
LyondellBasell Industries N.V., Class A	31,507	2,779,863
Steel Dynamics, Inc.	120,994	3,833,090
		34,515,160

Media & Entertainment 2.9%
Comcast Corp., Class A	129,117	5,620,463
Discovery, Inc., Class A *	30,154	931,759
IAC/InterActiveCorp *	15,704	3,530,887
The Walt Disney Co.	60,364	8,268,057
TripAdvisor, Inc. *	26,533	1,412,351
Viacom, Inc., Class B	231,015	6,678,644
		26,442,161

Pharmaceuticals, Biotechnology & Life Sciences 9.1%
Alexion Pharmaceuticals, Inc. *	24,547	3,341,583
Amgen, Inc.	61,952	11,109,233
Biogen, Inc. *	3,997	916,272
Gilead Sciences, Inc.	91,816	5,971,713
Johnson & Johnson	169,538	23,938,766
Merck & Co., Inc.	98,778	7,774,816
Novartis AG ADR	17,786	1,462,543
Novo Nordisk A/S ADR	110,359	5,408,695
Pfizer, Inc.	227,654	9,245,029
Regeneron Pharmaceuticals, Inc. *	9,204	3,158,260
Roche Holding AG ADR	296,558	9,804,207
		82,131,117

Real Estate 5.0%
American Tower Corp.	29,581	5,777,169
Apartment Investment & Management Co., Class A	5,740	283,326
Douglas Emmett, Inc.	94,699	3,900,652
Equity LifeStyle Properties, Inc.	19,987	2,332,483
Lamar Advertising Co., Class A	49,801	4,117,049
Omega Healthcare Investors, Inc.	24,556	869,037
Outfront Media, Inc.	214,215	5,104,743
PS Business Parks, Inc.	42,135	6,472,779
Retail Properties of America, Inc., Class A	518,578	6,373,324
Simon Property Group, Inc.	5,174	898,724
Spirit Realty Capital, Inc.	228,147	9,230,827
		45,360,113

Retailing 1.1%
AutoZone, Inc. *	2,101	2,160,479
Best Buy Co., Inc.	62,495	4,650,253
Kohl's Corp.	9,660	686,826
Macy's, Inc.	40,951	963,987
The TJX Cos., Inc.	26,096	1,432,148
		9,893,693

Semiconductors & Semiconductor Equipment 2.6%
Broadcom, Inc.	11,549	3,677,201
Intel Corp.	352,995	18,016,865
Lam Research Corp.	7,374	1,529,589
		23,223,655

Security	Number of Shares	Value ($)
Software & Services 4.6%
Cadence Design Systems, Inc. *	25,985	1,802,839
Citrix Systems, Inc.	118,122	11,925,597
International Business Machines Corp.	69,673	9,773,032
Intuit, Inc.	3,695	927,667
Microsoft Corp.	25,988	3,394,033
VeriSign, Inc. *	70,465	13,913,314
		41,736,482

Technology Hardware & Equipment 2.9%
Apple, Inc.	20,743	4,162,498
Cisco Systems, Inc.	258,919	14,486,518
HP, Inc.	390,361	7,787,702
		26,436,718

Telecommunication Services 2.7%
AT&T, Inc.	169,080	5,234,717
CenturyLink, Inc.	149,383	1,705,954
Cogent Communications Holdings, Inc.	53,828	2,972,920
Verizon Communications, Inc.	247,192	14,136,911
		24,050,502

Transportation 0.1%
United Continental Holdings, Inc. *	14,133	1,255,858

Utilities 7.7%
CenterPoint Energy, Inc.	479,947	14,878,357
Edison International	32,971	2,102,561
Exelon Corp.	394,296	20,089,381
NRG Energy, Inc.	271,736	11,187,371
Portland General Electric Co.	321,551	16,820,333
UGI Corp.	82,260	4,483,992
		69,561,995
Total Common Stock
(Cost $761,977,485)		902,182,800
Security Rate, Maturity Date	Face Amount ($)	Value ($)
Short-Term Investment0.2% of net assets

Time Deposit 0.2%
BNP Paribas
1.80%, 05/01/19(a)	2,299,061	2,299,061
Total Short-Term Investment
(Cost $2,299,061)		2,299,061

*	Non-income producing security.
(a)	The rate shown is the current daily overnight rate.

ADR —

American Depositary Receipt

₃₂

Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Dividend Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2019 (see financial note 2(a) for additional information):

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Assets
Common Stock¹	$902,182,800	$—	$—	$902,182,800
Short-Term Investment¹	—	2,299,061	—	2,299,061
Total	$902,182,800	$2,299,061	$—	$904,481,861

¹	As categorized in Portfolio Holdings.

₃₃

Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Dividend Equity Fund

Statement of Assets and Liabilities

As of April 30, 2019; unaudited

Assets
Investments in unaffiliated issuers, at value (cost $764,276,546)		$904,481,861
Receivables:
Investments sold		19,935,432
Dividends		652,033
Fund shares sold		235,469
Foreign tax reclaims		1,378
Interest		114
Prepaid expenses	+	14,704
Total assets		925,320,991
Liabilities
Payables:
Investments bought		19,159,191
Investment adviser and administrator fees		459,997
Shareholder service fees		180,994
Fund shares redeemed		1,035,154
Accrued expenses	+	121,776
Total liabilities		20,957,112
Net Assets
Total assets		925,320,991
Total liabilities	–	20,957,112
Net assets		$904,363,879
Net Assets by Source
Capital received from investors		742,763,808
Total distributable earnings		161,600,071

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$904,363,879		60,448,333		$14.96

₃₄

Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Dividend Equity Fund

Statement of Operations

For the period November 1, 2018 through April 30, 2019; unaudited

Investment Income
Dividends		$13,772,481
Interest	+	39,630
Total investment income		13,812,111
Expenses
Investment adviser and administrator fees		3,161,192
Shareholder service fees		1,232,217
Portfolio accounting fees		26,228
Shareholder reports		24,696
Professional fees		18,991
Custodian fees		17,979
Transfer agent fees		14,914
Registration fees		14,855
Independent trustees’ fees		6,675
Other expenses	+	8,865
Total expenses		4,526,612
Expense reduction by CSIM and its affiliates	–	14,914
Net expenses	–	4,511,698
Net investment income		9,300,413
Realized and Unrealized Gains (Losses)
Net realized gains on investments		18,462,062
Net realized gains on futures contracts	+	1,770,698
Net realized gains		20,232,760
Net change in unrealized appreciation (depreciation) on investments	+	24,868,068
Net realized and unrealized gains		45,100,828
Increase in net assets resulting from operations		$54,401,241

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Table of Contents

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
	11/1/18-4/30/19		11/1/17-10/31/18
Net investment income		$9,300,413	$19,019,115
Net realized gains		20,232,760	100,779,824
Net change in unrealized appreciation (depreciation)	+	24,868,068	(119,244,775)
Increase in net assets from operations		54,401,241	554,164
Distributions to Shareholders
Total distributions		($110,064,113)	($146,370,393)

Transactions in Fund Shares
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	VALUE	SHARES	VALUE
Shares sold		3,157,038	$42,374,493	4,465,871	$72,752,175
Shares reinvested		5,335,606	71,413,385	5,882,999	95,048,975
Shares redeemed	+	(28,988,794)	(402,884,937)	(14,759,098)	(242,239,003)
Net transactions in fund shares		(20,496,150)	($289,097,059)	(4,410,228)	($74,437,853)
Shares Outstanding and Net Assets
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		80,944,483	$1,249,123,810	85,354,711	$1,469,377,892
Total decrease	+	(20,496,150)	(344,759,931)	(4,410,228)	(220,254,082)
End of period		60,448,333	$904,363,879	80,944,483	$1,249,123,810

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Table of Contents

Schwab Large-Cap Growth Fund

Financial Statements

Financial Highlights

	11/1/18– 4/30/19*	11/1/17– 10/31/18	11/1/16– 10/31/17	11/1/15– 10/31/16	11/1/14– 10/31/15	11/1/13– 10/31/14
Per-Share Data
Net asset value at beginning of period	$18.04	$18.65	$15.20	$17.68	$18.38	$15.66
Income (loss) from investment operations:
Net investment income (loss)	0.05¹	0.06¹	0.08¹	0.20¹	0.13¹	0.11
Net realized and unrealized gains (losses)	1.42	0.75	4.04	(0.12)	1.08	2.70
Total from investment operations	1.47	0.81	4.12	0.08	1.21	2.81
Less distributions:
Distributions from net investment income	(0.07)	(0.07)	(0.17)	(0.20)	(0.09)	(0.09)
Distributions from net realized gains	(1.75)	(1.35)	(0.50)	(2.36)	(1.82)	—
Total distributions	(1.82)	(1.42)	(0.67)	(2.56)	(1.91)	(0.09)
Net asset value at end of period	$17.69	$18.04	$18.65	$15.20	$17.68	$18.38
Total return	9.82%²	4.46%	28.10%	0.54%	7.00%	18.06%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.99%³	0.99%	0.99%	1.00%⁴	0.99%	0.99%
Gross operating expenses	1.04%³	1.02%	1.04%	1.04%	1.03%	1.04%
Net investment income (loss)	0.59%³	0.30%	0.48%	1.32%	0.75%	0.60%
Portfolio turnover rate	33%²	88%	81%	84%	90%	82%
Net assets, end of period (x 1,000,000)	$187	$243	$257	$219	$251	$256

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Not annualized.

Annualized.

⁴

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

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Table of Contents

Schwab Large-Cap Growth Fund

Portfolio Holdings as of April 30, 2019 (Unaudited)

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

Security	Number of Shares	Value ($)
Common Stock99.4% of net assets

Automobiles & Components 0.3%
Lear Corp.	3,989	570,427

Banks 1.3%
Essent Group Ltd. *	10,896	517,015
MGIC Investment Corp. *	94,807	1,387,974
Regions Financial Corp.	33,837	525,489
		2,430,478

Capital Goods 6.8%
Allison Transmission Holdings, Inc.	68,015	3,187,183
Caterpillar, Inc.	2,425	338,093
Dover Corp.	6,228	610,593
Honeywell International, Inc.	2,621	455,084
Lennox International, Inc.	988	268,193
Masco Corp.	35,514	1,387,177
Oshkosh Corp.	8,184	675,917
Raytheon Co.	2,466	437,937
The Boeing Co.	14,116	5,331,472
		12,691,649

Commercial & Professional Services 1.4%
Deluxe Corp.	17,156	767,216
Insperity, Inc.	2,833	338,714
Korn Ferry	8,017	376,959
Robert Half International, Inc.	17,219	1,069,128
		2,552,017

Consumer Durables & Apparel 1.7%
NIKE, Inc., Class B	16,398	1,440,236
Sony Corp. ADR	34,648	1,745,220
		3,185,456

Consumer Services 1.3%
Darden Restaurants, Inc.	8,670	1,019,592
Starbucks Corp.	18,128	1,408,183
		2,427,775

Diversified Financials 3.8%
Affiliated Managers Group, Inc.	6,552	726,748
Ameriprise Financial, Inc.	4,296	630,524
Capital One Financial Corp.	12,183	1,130,948
E*TRADE Financial Corp.	20,759	1,051,651
Evercore, Inc., Class A	12,892	1,256,068
SEI Investments Co.	5,301	288,639
Synchrony Financial	22,384	776,053
T. Rowe Price Group, Inc.	11,395	1,224,962
		7,085,593

Security	Number of Shares	Value ($)
Energy 1.2%
ConocoPhillips	30,131	1,901,869
Phillips 66	4,398	414,599
		2,316,468

Food, Beverage & Tobacco 3.5%
Flowers Foods, Inc.	63,996	1,391,273
Ingredion, Inc.	6,782	642,594
PepsiCo, Inc.	31,511	4,034,984
Post Holdings, Inc. *	3,518	396,760
		6,465,611

Health Care Equipment & Services 5.0%
Amedisys, Inc. *	9,747	1,245,862
Cardinal Health, Inc.	6,723	327,477
HCA Healthcare, Inc.	9,787	1,245,200
Hill-Rom Holdings, Inc.	17,117	1,736,006
Hologic, Inc. *	23,288	1,080,097
IDEXX Laboratories, Inc. *	2,595	602,040
Integra LifeSciences Holdings Corp. *	3,735	194,930
UnitedHealth Group, Inc.	12,773	2,977,003
		9,408,615

Household & Personal Products 1.6%
Kimberly-Clark Corp.	23,104	2,966,092

Insurance 0.1%
Aon plc	1,496	269,489

Materials 1.8%
BHP Group plc ADR	12,373	583,140
Celanese Corp.	18,181	1,961,548
Steel Dynamics, Inc.	28,525	903,672
		3,448,360

Media & Entertainment 11.7%
Alphabet, Inc., Class A *	8,408	10,080,856
AMC Networks, Inc., Class A *	3,882	226,748
Discovery, Inc., Class A *	12,515	386,713
Facebook, Inc., Class A *	30,905	5,977,027
IAC/InterActiveCorp *	3,344	751,865
Netflix, Inc. *	2,537	940,060
Tencent Holdings Ltd. ADR	11,847	583,346
The Walt Disney Co.	21,414	2,933,076
		21,879,691

Pharmaceuticals, Biotechnology & Life Sciences 7.8%
AbbVie, Inc.	11,787	935,770
Alexion Pharmaceuticals, Inc. *	13,587	1,849,598
Amgen, Inc.	9,699	1,739,225
Biogen, Inc. *	5,303	1,215,660
Charles River Laboratories International, Inc. *	6,725	944,661

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Table of Contents

Schwab Large-Cap Growth Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	Value ($)
Gilead Sciences, Inc.	10,630	691,375
Jazz Pharmaceuticals plc *	3,368	437,065
Novartis AG ADR	14,047	1,155,085
Novo Nordisk A/S ADR	27,644	1,354,832
PRA Health Sciences, Inc. *	4,676	452,730
Regeneron Pharmaceuticals, Inc. *	4,653	1,596,630
Roche Holding AG ADR	30,603	1,011,735
United Therapeutics Corp. *	2,208	226,475
Vertex Pharmaceuticals, Inc. *	4,318	729,656
Waters Corp. *	1,105	235,962
		14,576,459

Real Estate 2.8%
American Tower Corp.	8,224	1,606,147
CBRE Group, Inc., Class A *	13,756	716,275
Douglas Emmett, Inc.	19,201	790,889
Lamar Advertising Co., Class A	15,846	1,309,989
Outfront Media, Inc.	17,195	409,757
PS Business Parks, Inc.	2,394	367,766
		5,200,823

Retailing 11.1%
Amazon.com, Inc. *	7,176	13,824,707
AutoZone, Inc. *	1,198	1,231,915
Best Buy Co., Inc.	9,191	683,902
Lowe's Cos., Inc.	5,776	653,497
Qurate Retail, Inc. *	20,732	353,481
The Home Depot, Inc.	10,437	2,126,017
The TJX Cos., Inc.	30,786	1,689,536
Ulta Salon, Cosmetics & Fragrance, Inc. *	306	106,788
		20,669,843

Semiconductors & Semiconductor Equipment 3.2%
Intel Corp.	9,986	509,686
Lam Research Corp.	6,589	1,366,756
Micron Technology, Inc. *	31,422	1,321,609
NVIDIA Corp.	4,051	733,231
Texas Instruments, Inc.	16,794	1,978,837
		5,910,119

Software & Services 21.7%
Accenture plc, Class A	10,239	1,870,358
Adobe, Inc. *	14,144	4,091,152
Akamai Technologies, Inc. *	23,901	1,913,514
Automatic Data Processing, Inc.	8,112	1,333,532
Cadence Design Systems, Inc. *	27,928	1,937,645
Citrix Systems, Inc.	10,224	1,032,215
Cognizant Technology Solutions Corp., Class A	5,709	416,529
Fortinet, Inc. *	11,179	1,044,342
Intuit, Inc.	5,507	1,382,587
j2 Global, Inc.	9,829	861,217
Mastercard, Inc., Class A	11,525	2,930,116
Microsoft Corp.	105,218	13,741,471

Security	Number of Shares	Value ($)
Nuance Communications, Inc. *	32,123	540,630
PayPal Holdings, Inc. *	7,688	866,976
VeriSign, Inc. *	13,156	2,597,652
Visa, Inc., Class A	18,825	3,095,395
VMware, Inc., Class A	4,188	854,896
		40,510,227

Technology Hardware & Equipment 8.7%
Apple, Inc.	70,800	14,207,436
F5 Networks, Inc. *	3,599	564,683
Zebra Technologies Corp., Class A *	7,429	1,568,559
		16,340,678

Transportation 1.9%
C.H. Robinson Worldwide, Inc.	6,127	496,287
Landstar System, Inc.	13,775	1,500,924
Union Pacific Corp.	5,181	917,244
United Continental Holdings, Inc. *	7,797	692,842
		3,607,297

Utilities 0.7%
Exelon Corp.	17,373	885,154
NRG Energy, Inc.	10,434	429,568
		1,314,722
Total Common Stock
(Cost $126,129,628)		185,827,889
Security Rate, Maturity Date	Face Amount ($)	Value ($)
Short-Term Investment0.7% of net assets

Time Deposit 0.7%
BNP Paribas
1.80%, 05/01/19(a)	1,287,288	1,287,288
Total Short-Term Investment
(Cost $1,287,288)		1,287,288

*	Non-income producing security.
(a)	The rate shown is the current daily overnight rate.

ADR —

American Depositary Receipt

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Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Large-Cap Growth Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2019 (see financial note 2(a) for additional information):

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Assets
Common Stock¹	$185,827,889	$—	$—	$185,827,889
Short-Term Investment¹	—	1,287,288	—	1,287,288
Futures Contracts²	11,613	—	—	11,613
Total	$185,839,502	$1,287,288	$—	$187,126,790

¹	As categorized in Portfolio Holdings.
²	Futures contracts are valued at unrealized appreciation or depreciation.

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Table of Contents

Schwab Large-Cap Growth Fund

Statement of Assets and Liabilities

As of April 30, 2019; unaudited

Assets
Investments in unaffiliated issuers, at value (cost $127,416,916)		$187,115,177
Deposit with broker for futures contracts		37,800
Receivables:
Dividends		68,275
Fund shares sold		55,932
Variation margin on futures contracts		1,680
Interest		64
Prepaid expenses	+	11,471
Total assets		187,290,399
Liabilities
Payables:
Investment adviser and administrator fees		105,252
Shareholder service fees		37,362
Fund shares redeemed		119,026
Accrued expenses	+	70,523
Total liabilities		332,163
Net Assets
Total assets		187,290,399
Total liabilities	–	332,163
Net assets		$186,958,236
Net Assets by Source
Capital received from investors		124,317,452
Total distributable earnings		62,640,784

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$186,958,236		10,566,690		$17.69

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Table of Contents

Schwab Large-Cap Growth Fund

Statement of Operations

For the period November 1, 2018 through April 30, 2019; unaudited

Investment Income
Dividends		$1,310,969
Interest		14,074
Securities on loan, net	+	256,462
Total investment income		1,581,505
Expenses
Investment adviser and administrator fees		719,170
Shareholder service fees		240,942
Professional fees		17,819
Registration fees		14,061
Portfolio accounting fees		12,888
Shareholder reports		11,599
Custodian fees		6,811
Transfer agent fees		5,444
Independent trustees’ fees		4,155
Other expenses	+	2,886
Total expenses		1,035,775
Expense reduction by CSIM and its affiliates	–	46,916
Net expenses	–	988,859
Net investment income		592,646
Realized and Unrealized Gains (Losses)
Net realized gains on investments		2,641,291
Net realized gains on futures contracts	+	150,998
Net realized gains		2,792,289
Net change in unrealized appreciation (depreciation) on investments		11,451,899
Net change in unrealized appreciation (depreciation) on futures contracts	+	101,739
Net change in unrealized appreciation (depreciation)	+	11,553,638
Net realized and unrealized gains		14,345,927
Increase in net assets resulting from operations		$14,938,573

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Schwab Active Equity Funds | Semiannual Report

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Table of Contents

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
	11/1/18-4/30/19		11/1/17-10/31/18
Net investment income		$592,646	$787,740
Net realized gains		2,792,289	23,386,823
Net change in unrealized appreciation (depreciation)	+	11,553,638	(12,202,184)
Increase in net assets from operations		14,938,573	11,972,379
Distributions to Shareholders
Total distributions		($24,256,179)	($19,458,886)

Transactions in Fund Shares
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	VALUE	SHARES	VALUE
Shares sold		737,259	$11,717,377	1,778,882	$33,172,055
Shares reinvested		1,033,263	15,729,023	679,342	12,058,316
Shares redeemed	+	(4,662,476)	(73,940,894)	(2,772,143)	(51,802,580)
Net transactions in fund shares		(2,891,954)	($46,494,494)	(313,919)	($6,572,209)
Shares Outstanding and Net Assets
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		13,458,644	$242,770,336	13,772,563	$256,829,052
Total decrease	+	(2,891,954)	(55,812,100)	(313,919)	(14,058,716)
End of period		10,566,690	$186,958,236	13,458,644	$242,770,336

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Table of Contents

Schwab Small-Cap Equity Fund

Financial Statements

Financial Highlights

	11/1/18– 4/30/19*	11/1/17– 10/31/18	11/1/16– 10/31/17	11/1/15– 10/31/16	11/1/14– 10/31/15	11/1/13– 10/31/14
Per-Share Data
Net asset value at beginning of period	$20.87	$23.58	$18.81	$21.19	$25.11	$24.87
Income (loss) from investment operations:
Net investment income (loss)	0.03¹	0.01¹	(0.00)¹^,²	0.07¹	0.05¹	(0.02)
Net realized and unrealized gains (losses)	0.34	0.32	4.86	0.12	0.63	2.71
Total from investment operations	0.37	0.33	4.86	0.19	0.68	2.69
Less distributions:
Distributions from net investment income	(0.01)	—	(0.09)	(0.04)	(0.02)	(0.07)
Distributions from net realized gains	(3.85)	(3.04)	—	(2.53)	(4.58)	(2.38)
Total distributions	(3.86)	(3.04)	(0.09)	(2.57)	(4.60)	(2.45)
Net asset value at end of period	$17.38	$20.87	$23.58	$18.81	$21.19	$25.11
Total return	4.28%³	1.37%	25.87%	1.47%	3.01%	11.67%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	1.09%⁴	1.09%	1.10%	1.09%	1.09%	1.10%
Gross operating expenses	1.09%⁴	1.09%	1.10%	1.10%	1.09%	1.10%
Net investment income (loss)	0.36%⁴	0.06%	(0.01%)	0.37%	0.22%	(0.10%)
Portfolio turnover rate	56%³	111%	99%	85%	95%	103%
Net assets, end of period (x 1,000,000)	$632	$573	$645	$571	$630	$666

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Per-share amount was less than $0.005.

Not annualized.

⁴

Annualized.

₄₄

Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Small-Cap Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited)

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

Security	Number of Shares	Value ($)
Common Stock98.2% of net assets

Automobiles & Components 2.2%
American Axle & Manufacturing Holdings, Inc. *	205,609	3,032,733
Cooper Tire & Rubber Co.	37,105	1,107,955
Dana, Inc.	258,986	5,050,227
Gentherm, Inc. *	51,260	2,171,374
Modine Manufacturing Co. *	54,788	810,314
Superior Industries International, Inc.	71,147	352,178
Tower International, Inc.	53,991	1,260,150
		13,784,931

Banks 10.5%
1st Source Corp.	51,704	2,421,298
BancFirst Corp.	36,288	2,046,643
Bank of Marin Bancorp	10,505	444,887
Banner Corp.	26,122	1,384,988
Cadence BanCorp	145,414	3,308,168
Century Bancorp, Inc., Class A	9,943	911,475
Customers Bancorp, Inc. *	251,231	5,690,382
Essent Group Ltd. *	107,699	5,110,318
Financial Institutions, Inc.	113,439	3,119,572
First BanCorp	688,807	7,783,519
First Defiance Financial Corp.	6,272	185,087
First Financial Corp.	28,362	1,167,664
Great Southern Bancorp, Inc.	12,741	738,341
International Bancshares Corp.	188,613	7,821,781
Mercantile Bank Corp.	11,945	403,741
MGIC Investment Corp. *	568,306	8,320,000
MidWestOne Financial Group, Inc.	4,237	119,399
OFG Bancorp	196,715	3,969,709
Peapack-Gladstone Financial Corp.	18,917	547,269
Radian Group, Inc.	254,431	5,958,774
RBB Bancorp	33,192	642,597
Republic Bancorp, Inc., Class A	29,147	1,377,487
Shore Bancshares, Inc.	22,623	358,122
TCF Financial Corp.	115,491	2,555,816
Timberland Bancorp, Inc.	7,071	220,615
		66,607,652

Capital Goods 11.4%
Advanced Drainage Systems, Inc.	48,153	1,350,692
Albany International Corp., Class A	18,411	1,361,862
Atkore International Group, Inc. *	337,239	8,350,038
AZZ, Inc.	26,901	1,277,528
Builders FirstSource, Inc. *	108,136	1,490,114
Columbus McKinnon Corp.	46,257	1,820,675
Comfort Systems USA, Inc.	135,547	7,333,093
Commercial Vehicle Group, Inc. *	132,847	1,184,995
CSW Industrials, Inc. *	32,482	1,947,296
EMCOR Group, Inc.	36,491	3,070,353
Encore Wire Corp.	19,264	1,142,163
EnerSys	21,602	1,494,642
Federal Signal Corp.	68,944	1,983,519
Foundation Building Materials, Inc. *	50,801	690,386
Generac Holdings, Inc. *	45,826	2,519,972

Security	Number of Shares	Value ($)
General Finance Corp. *	126,368	1,175,222
Great Lakes Dredge & Dock Corp. *	412,355	4,218,392
Hillenbrand, Inc.	121,384	5,221,940
JELD-WEN Holding, Inc. *	32,506	641,993
Kaman Corp.	9,728	602,260
Moog, Inc., Class A	54,620	5,114,617
Mueller Industries, Inc.	12,424	362,408
MYR Group, Inc. *	25,349	916,366
NCI Building Systems, Inc. *	193,013	1,104,034
Park-Ohio Holdings Corp.	17,095	626,190
PGT Innovations, Inc. *	77,956	1,142,835
Regal Beloit Corp.	13,187	1,121,950
Rexnord Corp. *	130,551	3,733,759
Vectrus, Inc. *	41,330	1,675,931
WESCO International, Inc. *	130,479	7,468,618
		72,143,843

Commercial & Professional Services 3.5%
Barrett Business Services, Inc.	44,152	3,216,915
Deluxe Corp.	76,334	3,413,656
Heidrick & Struggles International, Inc.	67,741	2,423,773
Insperity, Inc.	8,543	1,021,401
Kelly Services, Inc., Class A	103,470	2,303,242
Kforce, Inc.	116,601	4,199,968
Kimball International, Inc., Class B	31,406	491,818
Korn Ferry	32,263	1,517,006
Steelcase, Inc., Class A	141,782	2,451,411
TrueBlue, Inc. *	34,592	835,743
		21,874,933

Consumer Durables & Apparel 3.1%
Crocs, Inc. *	73,087	2,035,473
Fossil Group, Inc. *	89,289	1,167,007
Helen of Troy Ltd. *	20,221	2,911,824
Installed Building Products, Inc. *	51,180	2,458,175
KB Home	74,531	1,931,098
Malibu Boats, Inc., Class A *	116,136	4,833,580
Meritage Homes Corp. *	29,326	1,500,025
Movado Group, Inc.	38,407	1,369,210
ZAGG, Inc. *	167,007	1,376,138
		19,582,530

Consumer Services 1.7%
American Public Education, Inc. *	6,222	199,104
BJ's Restaurants, Inc.	74,515	3,719,044
Bloomin' Brands, Inc.	34,437	688,396
Brinker International, Inc.	18,826	805,188
Carrols Restaurant Group, Inc. *	139,389	1,367,406
Dave & Buster's Entertainment, Inc.	20,419	1,160,616
J Alexander's Holdings, Inc. *	32,568	357,922
Red Robin Gourmet Burgers, Inc. *	37,112	1,188,697
The Habit Restaurants, Inc., Class A *	89,312	952,066
Town Sports International Holdings, Inc. *	29,096	105,618
		10,544,057

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Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Small-Cap Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	Value ($)
Diversified Financials 3.7%
Enova International, Inc. *	299,674	8,220,058
Evercore, Inc., Class A	38,619	3,762,649
Green Dot Corp., Class A *	8,404	535,923
Navient Corp.	355,444	4,802,048
On Deck Capital, Inc. *	505,021	2,757,415
Regional Management Corp. *	122,143	3,025,482
		23,103,575

Energy 4.2%
Arch Coal, Inc., Class A	20,268	1,965,591
Cactus, Inc., Class A *	116,493	4,228,696
CONSOL Energy, Inc. *	130,427	4,421,475
CVR Energy, Inc.	94,984	4,332,220
Delek US Holdings, Inc.	40,727	1,509,343
Evolution Petroleum Corp.	77,791	546,871
Exterran Corp. *	19,565	278,214
FTS International, Inc. *	131,284	1,358,789
Keane Group, Inc. *	173,444	1,819,428
Matrix Service Co. *	100,595	1,972,668
Par Pacific Holdings, Inc. *	28,278	552,552
Peabody Energy Corp.	14,521	417,769
Renewable Energy Group, Inc. *	14,352	346,170
Whiting Petroleum Corp. *	60,417	1,654,822
World Fuel Services Corp.	43,254	1,334,386
		26,738,994

Food, Beverage & Tobacco 1.1%
Coca-Cola Consolidated, Inc.	9,736	3,164,492
Dean Foods Co.	546,467	928,994
Lancaster Colony Corp.	3,780	562,124
Primo Water Corp. *	149,750	2,358,562
		7,014,172

Health Care Equipment & Services 5.0%
Accuray, Inc. *	292,507	1,210,979
Amedisys, Inc. *	28,933	3,698,216
Computer Programs & Systems, Inc.	66,058	2,007,503
CONMED Corp.	28,724	2,298,782
Globus Medical, Inc., Class A *	33,323	1,502,534
Haemonetics Corp. *	35,057	3,059,775
HMS Holdings Corp. *	71,201	2,166,646
Integer Holdings Corp. *	58,284	4,026,842
Meridian Bioscience, Inc.	47,002	540,993
Merit Medical Systems, Inc. *	32,641	1,833,771
Natus Medical, Inc. *	78,763	2,107,698
NextGen Healthcare, Inc. *	35,275	662,817
Orthofix Medical, Inc. *	5,759	315,536
Quidel Corp. *	22,691	1,450,863
Surmodics, Inc. *	25,062	1,088,693
Tactile Systems Technology, Inc. *	18,804	935,687
Tenet Healthcare Corp. *	54,196	1,186,892
The Ensign Group, Inc.	31,465	1,621,077
		31,715,304

Household & Personal Products 1.4%
Medifast, Inc.	27,869	4,088,104
Natural Health Trends Corp.(a)	67,629	781,791
USANA Health Sciences, Inc. *	51,585	4,305,284
		9,175,179

Security	Number of Shares	Value ($)
Insurance 2.8%
American Equity Investment Life Holding Co.	239,536	7,044,754
Crawford & Co., Class B	38,882	342,939
Employers Holdings, Inc.	29,272	1,256,354
FedNat Holding Co.	9,699	157,803
Health Insurance Innovations, Inc., Class A *(a)	42,502	991,147
MBIA, Inc. *	92,064	890,259
National General Holdings Corp.	137,534	3,390,213
National Western Life Group, Inc., Class A	14,512	3,870,640
		17,944,109

Materials 3.0%
Boise Cascade Co.	33,618	930,882
Domtar Corp.	26,065	1,274,578
H.B. Fuller Co.	33,595	1,645,147
Ingevity Corp. *	20,756	2,387,148
OMNOVA Solutions, Inc. *	251,424	1,860,538
Quaker Chemical Corp.	2,987	668,550
Ryerson Holding Corp. *	346,345	2,995,884
SunCoke Energy, Inc. *	113,501	977,244
Tredegar Corp.	71,785	1,293,566
Trinseo S.A.	55,505	2,494,950
Verso Corp., Class A *	123,319	2,752,480
		19,280,967

Media & Entertainment 1.6%
AMC Networks, Inc., Class A *	51,092	2,984,283
Sinclair Broadcast Group, Inc., Class A	126,401	5,787,902
Travelzoo *	59,905	1,052,531
		9,824,716

Pharmaceuticals, Biotechnology & Life Sciences 11.6%
AMAG Pharmaceuticals, Inc. *	90,187	1,006,487
Amneal Pharmaceuticals, Inc. *	50,626	651,557
ANI Pharmaceuticals, Inc. *	75,331	5,346,994
Ardelyx, Inc. *	65,073	221,248
Array BioPharma, Inc. *	53,743	1,215,129
Arrowhead Pharmaceuticals, Inc. *	59,287	1,065,980
Assertio Therapeutics, Inc. *	199,654	832,557
BioSpecifics Technologies Corp. *	27,843	1,865,481
CareDx, Inc. *	34,526	939,453
ChemoCentryx, Inc. *	45,868	608,668
Collegium Pharmaceutical, Inc. *	142,530	1,985,443
CytomX Therapeutics, Inc. *	47,152	448,416
Eagle Pharmaceuticals, Inc. *	36,986	1,901,450
Emergent BioSolutions, Inc. *	108,544	5,609,554
Enanta Pharmaceuticals, Inc. *	9,525	830,485
Endo International plc *	211,814	1,588,605
FibroGen, Inc. *	56,667	2,648,049
Genomic Health, Inc. *	45,939	2,955,256
Halozyme Therapeutics, Inc. *	129,729	2,092,529
Horizon Pharma plc *	190,611	4,866,299
Lannett Co., Inc. *(a)	53,088	408,247
Ligand Pharmaceuticals, Inc. *	26,764	3,368,249
Medpace Holdings, Inc. *	61,977	3,481,248
Myriad Genetics, Inc. *	67,618	2,128,615
Nektar Therapeutics *	48,149	1,541,731
OPKO Health, Inc. *	184,697	441,426
Pacira BioSciences, Inc. *	54,399	2,166,168
PDL BioPharma, Inc. *	155,275	507,749
Phibro Animal Health Corp., Class A	33,488	1,162,369
Pieris Pharmaceuticals, Inc. *	117,357	350,897
Prestige Consumer Healthcare, Inc. *	52,178	1,535,077

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Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Small-Cap Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	Value ($)
PTC Therapeutics, Inc. *	57,117	2,137,318
REGENXBIO, Inc. *	31,261	1,575,554
Repligen Corp. *	66,498	4,480,635
Retrophin, Inc. *	71,159	1,357,714
Seres Therapeutics, Inc. *	100,245	655,602
Supernus Pharmaceuticals, Inc. *	37,167	1,365,144
Syneos Health, Inc. *	21,909	1,028,189
Vanda Pharmaceuticals, Inc. *	102,169	1,664,333
Veracyte, Inc. *	100,921	2,308,063
Vericel Corp. *	51,703	878,434
		73,222,402

Real Estate 8.4%
Alexander & Baldwin, Inc.	69,418	1,639,653
Armada Hoffler Properties, Inc.	39,120	631,788
Ashford Hospitality Trust, Inc.	116,030	639,325
Braemar Hotels & Resorts, Inc.	302,846	4,209,559
Brandywine Realty Trust	77,802	1,197,373
CareTrust REIT, Inc.	134,592	3,263,856
Cedar Realty Trust, Inc.	674,051	2,069,337
Columbia Property Trust, Inc.	27,575	626,228
CoreCivic, Inc.	203,418	4,233,129
Cousins Properties, Inc.	87,970	841,873
Essential Properties Realty Trust, Inc.	88,433	1,828,794
Gladstone Commercial Corp.	158,376	3,444,678
Global Medical REIT, Inc.	119,003	1,213,831
Global Net Lease, Inc.	111,753	2,131,130
Hersha Hospitality Trust	48,077	892,790
Industrial Logistics Properties Trust	61,189	1,214,602
Marcus & Millichap, Inc. *	103,747	4,471,496
One Liberty Properties, Inc.	89,464	2,531,831
Paramount Group, Inc.	210,000	3,042,900
Pennsylvania Real Estate Investment Trust(a)	58,376	351,423
Piedmont Office Realty Trust, Inc., Class A	178,516	3,716,703
RE/MAX Holdings, Inc., Class A	80,699	3,496,688
Retail Properties of America, Inc., Class A	226,614	2,785,086
The RMR Group, Inc., Class A	40,503	2,342,693
		52,816,766

Retailing 2.9%
1-800-Flowers.com, Inc., Class A *	84,551	1,800,091
Citi Trends, Inc.	59,769	1,106,324
Core-Mark Holding Co., Inc.	121,535	4,417,797
Designer Brands, Inc.	17,053	379,429
Funko, Inc., Class A *	56,582	1,122,021
Genesco, Inc. *	19,705	882,981
RTW RetailWinds, Inc. *	175,464	407,077
Sally Beauty Holdings, Inc. *	42,920	759,684
Shoe Carnival, Inc.	19,013	678,004
Stamps.com, Inc. *	10,763	923,465
Tailored Brands, Inc.	408,800	3,331,720
Tilly's, Inc., Class A	236,921	2,786,191
		18,594,784

Semiconductors & Semiconductor Equipment 2.9%
Cabot Microelectronics Corp.	54,493	6,879,741
Diodes, Inc. *	94,625	3,446,242
Nanometrics, Inc. *	49,425	1,472,371
NeoPhotonics Corp. *	340,146	2,323,197
Semtech Corp. *	28,718	1,547,039
Synaptics, Inc. *	18,994	715,504
Xperi Corp.	69,701	1,732,070
		18,116,164

Security	Number of Shares	Value ($)
Software & Services 9.6%
Alarm.com Holdings, Inc. *	13,779	976,656
Altair Engineering, Inc., Class A *	183,114	7,222,016
Amber Road, Inc. *	207,991	1,880,239
Bottomline Technologies (de), Inc. *	42,166	2,132,335
Box, Inc., Class A *	175,633	3,621,552
Cision Ltd. *	183,983	2,218,835
CommVault Systems, Inc. *	120,528	6,339,773
Cornerstone OnDemand, Inc. *	130,528	7,133,355
Endurance International Group Holdings, Inc. *	49,318	272,729
EVERTEC, Inc.	111,614	3,494,634
j2 Global, Inc.	37,194	3,258,938
MobileIron, Inc. *	276,098	1,637,261
Model N, Inc. *	73,390	1,360,651
Progress Software Corp.	148,295	6,763,735
Qualys, Inc. *	19,362	1,747,614
Science Applications International Corp.	28,244	2,116,888
SPS Commerce, Inc. *	9,245	959,076
The Trade Desk, Inc., Class A *	6,225	1,378,713
Verint Systems, Inc. *	61,546	3,716,763
Zix Corp. *	265,054	2,160,190
		60,391,953

Technology Hardware & Equipment 3.1%
Aerohive Networks, Inc. *	241,654	816,791
CalAmp Corp. *	34,122	498,522
Calix, Inc. *	124,454	852,510
Ciena Corp. *	119,830	4,596,679
Extreme Networks, Inc. *	810,150	6,481,200
Insight Enterprises, Inc. *	42,754	2,419,021
KEMET Corp.	51,518	920,627
Napco Security Technologies, Inc. *	15,385	381,240
ScanSource, Inc. *	46,970	1,768,420
Viavi Solutions, Inc. *	55,393	736,727
		19,471,737

Telecommunication Services 1.3%
Cogent Communications Holdings, Inc.	84,206	4,650,697
Consolidated Communications Holdings, Inc.	58,047	299,523
Telephone & Data Systems, Inc.	51,369	1,637,644
United States Cellular Corp. *	39,429	1,896,535
		8,484,399

Transportation 1.4%
ArcBest Corp.	62,154	1,899,426
Echo Global Logistics, Inc. *	168,638	3,868,556
Grupo Aeroportuario del Centro Norte S.A.B. de C.V. ADR	20,048	985,961
Radiant Logistics, Inc. *	231,184	1,511,943
Spirit Airlines, Inc. *	15,328	833,537
		9,099,423

Utilities 1.8%
AquaVenture Holdings Ltd. *	134,148	2,609,179
Atlantic Power Corp. *	599,069	1,383,849
Avista Corp.	64,371	2,776,965
Spark Energy, Inc., Class A(a)	462,295	4,373,311
		11,143,304
Total Common Stock
(Cost $589,276,393)		620,675,894

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Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Small-Cap Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	Value ($)
Other Investment Company0.9% of net assets

Securities Lending Collateral 0.9%
Wells Fargo Government Money Market Fund, Select Class 2.36%(b)	5,594,174	5,594,174
Total Other Investment Company
(Cost $5,594,174)		5,594,174
Security Rate, Maturity Date	Face Amount ($)	Value ($)
Short-Term Investments1.5% of net assets

Time Deposits 1.5%
BNP Paribas
1.80%, 05/01/19(c)	2,957,966	2,957,966
JPMorgan Chase Bank
1.80%, 05/01/19(c)	6,366,558	6,366,558
Total Short-Term Investments
(Cost $9,324,524)		9,324,524

	Number of Contracts	Notional Amount ($)	Current Value/ Unrealized Appreciation ($)
Futures Contracts
Long
Russell 2000 Index, e-mini, expires 06/21/19	110	8,768,100	66,583

*	Non-income producing security.
(a)	All or a portion of this security is on loan. Securities on loan were valued at $5,375,482.
(b)	The rate shown is the 7-day yield.
(c)	The rate shown is the current daily overnight rate.

ADR —	American Depositary Receipt
REIT —	Real Estate Investment Trust

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2019 (see financial note 2(a) for additional information):

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Assets
Common Stock¹	$620,675,894	$—	$—	$620,675,894
Other Investment Company¹	5,594,174	—	—	5,594,174
Short-Term Investments¹	—	9,324,524	—	9,324,524
Futures Contracts²	66,583	—	—	66,583
Total	$626,336,651	$9,324,524	$—	$635,661,175

¹	As categorized in Portfolio Holdings.
²	Futures contracts are valued at unrealized appreciation or depreciation.

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Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Small-Cap Equity Fund

Statement of Assets and Liabilities

As of April 30, 2019; unaudited

Assets
Investments in unaffiliated issuers, at value (cost $598,600,917) including securities on loan of $5,375,482		$630,000,418
Collateral invested for securities on loan, at value (cost $5,594,174)		5,594,174
Deposit with broker for futures contracts		2,236,500
Receivables:
Fund shares sold		1,612,695
Dividends		82,007
Income from securities on loan		12,156
Interest		437
Prepaid expenses	+	8,562
Total assets		639,546,949
Liabilities
Collateral held for securities on loan		5,594,174
Payables:
Investments bought		1,535,232
Investment adviser and administrator fees		416,634
Shareholder service fees		125,494
Fund shares redeemed		153,023
Variation margin on futures contracts		44,000
Accrued expenses	+	101,238
Total liabilities		7,969,795
Net Assets
Total assets		639,546,949
Total liabilities	–	7,969,795
Net assets		$631,577,154
Net Assets by Source
Capital received from investors		615,271,555
Total distributable earnings		16,305,599

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$631,577,154		36,335,222		$17.38

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Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Small-Cap Equity Fund

Statement of Operations

For the period November 1, 2018 through April 30, 2019; unaudited

Investment Income
Dividends (net of foreign withholding tax of $7,952)		$3,990,377
Interest		44,718
Securities on loan, net	+	157,478
Total investment income		4,192,573
Expenses
Investment adviser and administrator fees		2,333,263
Shareholder service fees		700,354
Custodian fees		24,983
Portfolio accounting fees		24,463
Professional fees		17,502
Shareholder reports		16,662
Registration fees		14,419
Transfer agent fees		8,197
Independent trustees’ fees		4,959
Other expenses	+	4,995
Total expenses		3,149,797
Expense reduction by CSIM and its affiliates	–	8,197
Net expenses	–	3,141,600
Net investment income		1,050,973
Realized and Unrealized Gains (Losses)
Net realized losses on investments		(16,444,965)
Net realized gains on futures contracts	+	1,402,934
Net realized losses		(15,042,031)
Net change in unrealized appreciation (depreciation) on investments		42,235,663
Net change in unrealized appreciation (depreciation) on futures contracts	+	66,583
Net change in unrealized appreciation (depreciation)	+	42,302,246
Net realized and unrealized gains		27,260,215
Increase in net assets resulting from operations		$28,311,188

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Schwab Active Equity Funds | Semiannual Report

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Table of Contents

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
	11/1/18-4/30/19		11/1/17-10/31/18
Net investment income		$1,050,973	$389,215
Net realized gains (losses)		(15,042,031)	104,146,024
Net change in unrealized appreciation (depreciation)	+	42,302,246	(92,914,743)
Increase in net assets from operations		28,311,188	11,620,496
Distributions to Shareholders
Total distributions		($105,061,725)	($82,566,358)

Transactions in Fund Shares
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	VALUE	SHARES	VALUE
Shares sold		6,986,043	$111,378,802	2,529,047	$55,468,967
Shares reinvested		5,236,122	80,112,670	2,938,036	61,434,349
Shares redeemed	+	(3,362,103)	(56,569,976)	(5,346,501)	(117,486,079)
Net transactions in fund shares		8,860,062	$134,921,496	120,582	($582,763)
Shares Outstanding and Net Assets
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		27,475,160	$573,406,195	27,354,578	$644,934,820
Total increase or decrease	+	8,860,062	58,170,959	120,582	(71,528,625)
End of period		36,335,222	$631,577,154	27,475,160	$573,406,195

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Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Hedged Equity Fund

Financial Statements

Financial Highlights

	11/1/18– 4/30/19*	11/1/17– 10/31/18	11/1/16– 10/31/17	11/1/15– 10/31/16	11/1/14– 10/31/15	11/1/13– 10/31/14
Per-Share Data
Net asset value at beginning of period	$16.89	$17.65	$16.25	$17.46	$19.02	$18.62
Income (loss) from investment operations:
Net investment income (loss)	0.06¹	0.08¹	0.03¹	0.03¹	(0.01)¹	(0.08)
Net realized and unrealized gains (losses)	(0.10)	0.24	1.85	0.49	0.89	1.99
Total from investment operations	(0.04)	0.32	1.88	0.52	0.88	1.91
Less distributions:
Distributions from net investment income	(0.08)	(0.01)	—	(0.12)	—	—
Distributions from net realized gains	(1.05)	(1.07)	(0.48)	(1.61)	(2.44)	(1.51)
Total distributions	(1.13)	(1.08)	(0.48)	(1.73)	(2.44)	(1.51)
Net asset value at end of period	$15.72	$16.89	$17.65	$16.25	$17.46	$19.02
Total return	0.16%²	1.75%	11.71%	3.55%	4.84%	11.07%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses (including dividend expense on short sales)	1.86%³	1.66%	1.64%	1.85%	1.82%	1.99%
Net operating expenses (excluding dividend expense on short sales)	1.33%³	1.33%	1.33%	1.57%⁴	1.54%⁴	1.52%⁴
Gross operating expenses	1.87%³	1.67%	1.65%	1.87%	1.84%	2.02%
Net investment income (loss)	0.78%³	0.43%	0.16%	0.22%	(0.06%)	(0.46%)
Portfolio turnover rate	86%²	180%	163%	142%	146%	142%
Net assets, end of period (x 1,000,000)	$247	$300	$252	$204	$212	$200

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Not annualized.

Annualized.

⁴

The ratios of net operating expenses would have been 1.33%, if stock loan fees on short sales had not been incurred.

₅₂

Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Hedged Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited)

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

Security	Number of Shares	Value ($)
Common Stock99.0% of net assets

Automobiles & Components 1.1%
Dana, Inc.	82,787	1,614,347
Lear Corp.	2,707	387,101
Tenneco, Inc., Class A	28,734	629,849
		2,631,297

Banks 5.8%
Bank of America Corp.(a)	45,018	1,376,650
Citigroup, Inc.(a)	57,951	4,097,136
First BanCorp(a)	345,110	3,899,743
JPMorgan Chase & Co.	11,090	1,286,994
MGIC Investment Corp. *	45,154	661,055
Popular, Inc.	26,005	1,500,749
Radian Group, Inc.	62,952	1,474,336
		14,296,663

Capital Goods 9.1%
Advanced Drainage Systems, Inc.	43,476	1,219,502
Allison Transmission Holdings, Inc.(a)	97,586	4,572,880
Atkore International Group, Inc. *	70,932	1,756,276
BMC Stock Holdings, Inc. *	30,558	628,884
Comfort Systems USA, Inc.	9,533	515,735
HD Supply Holdings, Inc. *	20,208	923,303
Hillenbrand, Inc.(a)	61,009	2,624,607
ITT, Inc.	25,634	1,552,139
Masco Corp.	41,011	1,601,890
Masonite International Corp. *	8,905	458,518
Patrick Industries, Inc. *	6,091	303,758
Raytheon Co.(a)	19,237	3,416,299
The Boeing Co.(a)	3,994	1,508,494
United Rentals, Inc. *	10,815	1,524,050
		22,606,335

Commercial & Professional Services 1.1%
ASGN, Inc. *	14,219	896,366
Korn Ferry	20,811	978,533
Robert Half International, Inc.	13,508	838,712
		2,713,611

Consumer Durables & Apparel 2.0%
Deckers Outdoor Corp. *	839	132,738
lululemon Athletica, Inc. *	5,494	968,867
NIKE, Inc., Class B(a)	27,001	2,371,498
PulteGroup, Inc.	26,865	845,173
Tapestry, Inc.	23,506	758,538
		5,076,814

Consumer Services 1.5%
BJ's Restaurants, Inc.	27,136	1,354,358
Bloomin' Brands, Inc.	6,702	133,973
Boyd Gaming Corp.	8,880	255,566
Darden Restaurants, Inc.	5,746	675,730

Security	Number of Shares	Value ($)
The Cheesecake Factory, Inc.	10,540	522,995
Weight Watchers International, Inc. *	39,874	814,227
		3,756,849

Diversified Financials 5.1%
Affiliated Managers Group, Inc.(a)	11,165	1,238,422
Capital One Financial Corp.(a)	52,175	4,843,405
Evercore, Inc., Class A	17,285	1,684,078
Navient Corp.	12,720	171,847
OneMain Holdings, Inc.	6,877	233,612
Synchrony Financial(a)	128,887	4,468,512
		12,639,876

Energy 7.0%
Cactus, Inc., Class A *	21,641	785,568
Chevron Corp.	3,280	393,797
ConocoPhillips(a)	60,669	3,829,427
CONSOL Energy, Inc. *	16,740	567,486
Continental Resources, Inc. *(a)	43,669	2,008,337
CVR Energy, Inc.	17,841	813,728
FTS International, Inc. *	22,854	236,539
HollyFrontier Corp.	17,820	850,549
Keane Group, Inc. *	47,974	503,247
Mammoth Energy Services, Inc.	53,086	827,611
Marathon Petroleum Corp.(a)	27,359	1,665,343
Occidental Petroleum Corp.	4,482	263,900
PBF Energy, Inc., Class A	21,147	710,116
Phillips 66(a)	22,205	2,093,266
W&T Offshore, Inc. *	39,119	249,579
Whiting Petroleum Corp. *	50,898	1,394,096
		17,192,589

Food & Staples Retailing 0.4%
Walmart, Inc.(a)	9,665	993,949

Food, Beverage & Tobacco 1.9%
Cal-Maine Foods, Inc.(a)	3,585	147,379
Cia Cervecerias Unidas S.A. ADR	46,601	1,283,391
Dean Foods Co.(a)	51,862	88,165
Fresh Del Monte Produce, Inc.(a)	11,456	338,067
Lancaster Colony Corp.	3,300	490,743
Philip Morris International, Inc.	10,544	912,689
Tyson Foods, Inc., Class A	20,968	1,572,810
		4,833,244

Health Care Equipment & Services 3.2%
Amedisys, Inc. *	5,713	730,236
CVS Health Corp.	25,460	1,384,515
HCA Healthcare, Inc.	7,847	998,374
Hill-Rom Holdings, Inc.	4,523	458,723
Hologic, Inc. *(a)	54,692	2,536,615
McKesson Corp.	6,078	724,801
Quidel Corp. *	13,192	843,496
Tenet Healthcare Corp. *	8,805	192,829
		7,869,589

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Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Hedged Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	Value ($)
Household & Personal Products 2.3%
Herbalife Nutrition Ltd. *	23,823	1,259,045
Kimberly-Clark Corp.	3,863	495,932
Medifast, Inc.	15,446	2,265,774
USANA Health Sciences, Inc. *	19,907	1,661,438
		5,682,189

Insurance 0.8%
American National Insurance Co.(a)	3,873	438,772
CNA Financial Corp.(a)	8,527	395,056
First American Financial Corp.	6,935	395,711
The Allstate Corp.(a)	7,442	737,205
		1,966,744

Materials 3.3%
Alcoa Corp. *(a)	52,528	1,401,447
Celanese Corp.	20,088	2,167,294
Domtar Corp.	18,336	896,630
H.B. Fuller Co.	12,402	607,326
Kraton Corp. *	13,513	443,497
Olin Corp.	25,843	560,535
Steel Dynamics, Inc.	47,693	1,510,914
Worthington Industries, Inc.	11,517	462,177
		8,049,820

Media & Entertainment 8.2%
Alphabet, Inc., Class A *(a)	5,645	6,768,129
AMC Networks, Inc., Class A *	33,191	1,938,686
Comcast Corp., Class A	19,477	847,834
Discovery, Inc., Class A *	31,398	970,198
Facebook, Inc., Class A *(a)	32,959	6,374,271
News Corp., Class A(a)	72,210	896,848
The E.W. Scripps Co., Class A	34,212	779,692
Viacom, Inc., Class B	62,468	1,805,950
		20,381,608

Pharmaceuticals, Biotechnology & Life Sciences 9.1%
AbbVie, Inc.(a)	3,041	241,425
Alexion Pharmaceuticals, Inc. *	644	87,668
Alkermes plc *	28,713	870,578
Amgen, Inc.(a)	25,025	4,487,483
Arrowhead Pharmaceuticals, Inc. *	35,656	641,095
Biogen, Inc. *(a)	6,829	1,565,480
CareDx, Inc. *	4,062	110,527
Charles River Laboratories International, Inc. *	2,593	364,239
Emergent BioSolutions, Inc. *	18,236	942,436
Endo International plc *	36,517	273,878
Genomic Health, Inc. *	23,200	1,492,456
Gilead Sciences, Inc.	11,554	751,472
Incyte Corp. *	19,482	1,496,218
Johnson & Johnson(a)	19,190	2,709,628
Ligand Pharmaceuticals, Inc. *	6,470	814,250
Mylan N.V. *	15,250	411,598
Novartis AG ADR	13,954	1,147,437
Novo Nordisk A/S ADR	31,348	1,536,365
Regeneron Pharmaceuticals, Inc. *	2,245	770,349
Vanda Pharmaceuticals, Inc. *	14,496	236,140
Vertex Pharmaceuticals, Inc. *	8,476	1,432,274
		22,382,996

Security	Number of Shares	Value ($)
Real Estate 5.2%
CoreCivic, Inc.	45,166	939,904
Global Net Lease, Inc.	12,630	240,854
Lamar Advertising Co., Class A	8,127	671,859
Outfront Media, Inc.	66,015	1,573,137
Paramount Group, Inc.	100,912	1,462,215
PS Business Parks, Inc.	6,656	1,022,495
Retail Properties of America, Inc., Class A(a)	117,764	1,447,320
Simon Property Group, Inc.(a)	20,826	3,617,476
SL Green Realty Corp.	6,403	565,641
Spirit Realty Capital, Inc.	34,148	1,381,628
		12,922,529

Retailing 6.9%
Amazon.com, Inc. *(a)	4,669	8,994,922
AutoZone, Inc. *	493	506,957
Best Buy Co., Inc.(a)	40,146	2,987,264
Kohl's Corp.(a)	6,343	450,987
Qurate Retail, Inc. *(a)	69,620	1,187,021
Tailored Brands, Inc.	56,761	462,602
The TJX Cos., Inc.	47,019	2,580,403
		17,170,156

Semiconductors & Semiconductor Equipment 2.6%
Intel Corp.(a)	71,953	3,672,481
Lam Research Corp.	6,915	1,434,378
Micron Technology, Inc. *(a)	6,927	291,350
ON Semiconductor Corp. *	27,360	630,922
Synaptics, Inc. *	8,296	312,510
		6,341,641

Software & Services 11.3%
Accenture plc, Class A(a)	24,804	4,530,947
Akamai Technologies, Inc. *(a)	32,167	2,575,290
Atlassian Corp. plc, Class A *	4,026	443,464
Automatic Data Processing, Inc.	4,083	671,204
Bottomline Technologies (de), Inc. *	13,016	658,219
Cadence Design Systems, Inc. *	26,238	1,820,392
Cision Ltd. *	51,855	625,371
Cornerstone OnDemand, Inc. *	3,330	181,985
Intuit, Inc.(a)	5,697	1,430,289
Microsoft Corp.(a)	57,187	7,468,622
Nuance Communications, Inc. *	109,365	1,840,613
Oracle Corp.	36,963	2,045,163
Progress Software Corp.(a)	68,686	3,132,769
VeriSign, Inc. *	2,052	405,167
		27,829,495

Technology Hardware & Equipment 6.0%
Apple, Inc.(a)	30,211	6,062,441
CDW Corp.	4,622	488,083
Ciena Corp. *	6,361	244,008
Cisco Systems, Inc.(a)	69,006	3,860,886
Dell Technologies, Inc., Class C *	2,921	196,905
F5 Networks, Inc. *	1,668	261,709
Fabrinet *	6,769	409,660
Insight Enterprises, Inc. *	14,838	839,534
Zebra Technologies Corp., Class A *(a)	11,154	2,355,055
		14,718,281

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Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Hedged Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	Value ($)
Telecommunication Services 1.1%
CenturyLink, Inc.	28,004	319,806
Cogent Communications Holdings, Inc.	31,789	1,755,706
Telefonica S.A. ADR	67,452	559,852
		2,635,364

Transportation 1.5%
Delta Air Lines, Inc.(a)	15,321	893,061
United Continental Holdings, Inc. *(a)	30,619	2,720,804
		3,613,865

Utilities 2.5%
AES Corp.	35,246	603,411
Avista Corp.	32,237	1,390,704
CenterPoint Energy, Inc.	23,020	713,620
Exelon Corp.	34,399	1,752,629
NextEra Energy, Inc.	7,565	1,470,939
NRG Energy, Inc.	9,219	379,546
		6,310,849
Total Common Stock
(Cost $225,512,533)		244,616,353

Other Investment Company0.3% of net assets

Money Market Fund 0.3%
State Street Institutional U.S. Government Money Market Fund, Premier Class 2.37%(b)	717,626	717,626
Total Other Investment Company
(Cost $717,626)		717,626

₅₅

Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Hedged Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

In addition to the above, the fund had the following short sale positions at April 30, 2019:

Security	Number of Shares	Value ($)
Short Sales (42.3%) of net assets

Automobiles & Components (1.6%)
Dorman Products, Inc.	25,428	(2,229,273)
Tesla, Inc.	6,149	(1,467,705)
Visteon Corp.	4,711	(311,020)
		(4,007,998)

Banks (0.2%)
FB Financial Corp.	7,137	(262,213)
TFS Financial Corp.	7,656	(127,396)
		(389,609)

Capital Goods (4.6%)
AAON, Inc.	48,994	(2,459,989)
Beacon Roofing Supply, Inc.	21,320	(802,911)
BWX Technologies, Inc.	29,518	(1,508,370)
Sunrun, Inc.	126,263	(1,920,460)
Trinity Industries, Inc.	64,667	(1,394,220)
Welbilt, Inc.	195,354	(3,287,808)
		(11,373,758)

Commercial & Professional Services (2.2%)
Equifax, Inc.	27,478	(3,460,854)
TriNet Group, Inc.	30,269	(1,886,970)
		(5,347,824)

Consumer Services (2.1%)
Caesars Entertainment Corp.	97,336	(911,065)
Grand Canyon Education, Inc.	21,205	(2,457,447)
Hilton Grand Vacations, Inc.	37,080	(1,188,043)
Papa John's International, Inc.	4,217	(215,742)
Sotheby's	12,514	(527,841)
		(5,300,138)

Diversified Financials (4.2%)
Cannae Holdings, Inc.	10,140	(260,294)
Credit Acceptance Corp.	5,296	(2,627,981)
Eaton Vance Corp.	16,780	(697,545)
Federated Investors, Inc., Class B	32,662	(1,003,703)
FirstCash, Inc.	18,831	(1,839,412)
Invesco Ltd.	92,896	(2,040,925)
LendingClub Corp.	379,091	(1,205,509)
PRA Group, Inc.	9,624	(270,627)
WisdomTree Investments, Inc.	59,332	(427,191)
		(10,373,187)

Energy (3.9%)
Callon Petroleum Co.	33,067	(248,333)
Diamond Offshore Drilling, Inc.	102,674	(996,965)
Dril-Quip, Inc.	12,778	(556,610)
GasLog Ltd.	24,709	(386,202)
Matador Resources Co.	118,147	(2,326,314)
Scorpio Tankers, Inc.	22,409	(577,704)
Ship Finance International Ltd.	215,495	(2,749,716)

Security	Number of Shares	Value ($)
Targa Resources Corp.	16,175	(649,426)
The Williams Cos., Inc.	38,336	(1,086,059)
		(9,577,329)

Food, Beverage & Tobacco (1.6%)
Hostess Brands, Inc.	26,729	(358,169)
Sanderson Farms, Inc.	24,380	(3,696,739)
		(4,054,908)

Health Care Equipment & Services (2.0%)
Atrion Corp.	554	(487,520)
Insulet Corp.	9,029	(778,751)
iRhythm Technologies, Inc.	10,685	(815,372)
LHC Group, Inc.	21,732	(2,414,643)
Nevro Corp.	5,152	(317,930)
		(4,814,216)

Materials (3.1%)
Commercial Metals Co.	62,309	(1,077,323)
Graphic Packaging Holding Co.	42,698	(592,648)
Linde plc	8,641	(1,557,627)
Martin Marietta Materials, Inc.	6,373	(1,414,169)
Sensient Technologies Corp.	8,119	(569,304)
Summit Materials, Inc., Class A	90,231	(1,580,847)
The Scotts Miracle-Gro Co.	10,156	(863,463)
		(7,655,381)

Media & Entertainment (1.8%)
Electronic Arts, Inc.	9,598	(908,451)
Liberty Broadband Corp., Class A	6,695	(658,721)
Netflix, Inc.	2,739	(1,014,909)
Zillow Group, Inc., Class A	54,696	(1,816,454)
		(4,398,535)

Pharmaceuticals, Biotechnology & Life Sciences (1.8%)
Aerie Pharmaceuticals, Inc.	5,368	(204,789)
Alnylam Pharmaceuticals, Inc.	17,540	(1,567,023)
Bluebird Bio, Inc.	15,514	(2,200,351)
MyoKardia, Inc.	4,765	(228,625)
Sage Therapeutics, Inc.	1,436	(241,578)
		(4,442,366)

Real Estate (1.6%)
Acadia Realty Trust	95,212	(2,688,787)
Agree Realty Corp.	20,529	(1,344,033)
		(4,032,820)

Retailing (2.3%)
At Home Group, Inc.	4,229	(99,339)
AutoNation, Inc.	42,392	(1,777,497)
CarMax, Inc.	6,347	(494,178)
Floor & Decor Holdings, Inc., Class A	9,110	(437,462)
GrubHub, Inc.	21,201	(1,416,015)
Tiffany & Co.	5,970	(643,685)
Wayfair, Inc.,Class A	5,182	(840,261)
		(5,708,437)

Semiconductors & Semiconductor Equipment (2.0%)
Brooks Automation, Inc.	14,465	(542,582)
First Solar, Inc.	48,694	(2,996,142)

₅₆

Schwab Active Equity Funds | Semiannual Report

See financial notes

Table of Contents

Schwab Hedged Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	Value ($)
Marvell Technology Group Ltd.	17,036	(426,241)
Universal Display Corp.	6,275	(1,001,490)
		(4,966,455)

Software & Services (1.9%)
LivePerson, Inc.	15,541	(455,818)
LiveRamp Holdings, Inc.	56,366	(3,287,829)
Rapid7, Inc.	15,628	(849,225)
		(4,592,872)

Technology Hardware & Equipment (3.7%)
Cognex Corp.	52,413	(2,643,188)
Coherent, Inc.	990	(146,530)
IPG Photonics Corp.	10,689	(1,867,689)
Knowles Corp.	26,139	(493,504)
Rogers Corp.	12,437	(2,083,446)
ViaSat, Inc.	22,027	(2,000,492)
		(9,234,849)

Security	Number of Shares	Value ($)
Telecommunication Services (1.0%)
Boingo Wireless, Inc.	21,499	(488,887)
Iridium Communications, Inc.	70,572	(1,937,907)
		(2,426,794)

Transportation (0.7%)
Copa Holdings S.A., Class A	22,058	(1,836,549)
Total Short Sales
(Proceeds $98,450,986)		(104,534,025)

*	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.

ADR —

American Depositary Receipt

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2019 (see financial note 2(a) for additional information):

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Assets
Common Stock¹	$244,616,353	$—	$—	$244,616,353
Other Investment Company¹	717,626	—	—	717,626
Liabilities
Short Sales¹	(104,534,025)	—	—	(104,534,025)
Total	$140,799,954	$—	$—	$140,799,954

¹	As categorized in Portfolio Holdings.

₅₇

Schwab Active Equity Funds | Semiannual Report

See financial notes

Table of Contents

Schwab Hedged Equity Fund

Statement of Assets and Liabilities

As of April 30, 2019; unaudited

Assets
Investments in unaffiliated issuers, at value (cost $226,230,159)		$245,333,979
Deposit with broker for futures contracts		342,000
Deposit with broker for short sales		105,479,352
Receivables:
Investments sold		6,059,879
Fund shares sold		308,030
Dividends		159,855
Prepaid expenses	+	209,273
Total assets		357,892,368
Liabilities
Securities sold short, at value (proceeds $98,450,986)		104,534,025
Payables:
Investments bought		5,878,517
Investment adviser and administrator fees		214,312
Shareholder service fees		41,076
Fund shares redeemed		146,491
Dividends on short sales		21,163
Accrued expenses	+	95,159
Total liabilities		110,930,743
Net Assets
Total assets		357,892,368
Total liabilities	–	110,930,743
Net assets		$246,961,625
Net Assets by Source
Capital received from investors		239,916,246
Total distributable earnings		7,045,379

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$246,961,625		15,710,389		$15.72

₅₈

Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Hedged Equity Fund

Statement of Operations

For the period November 1, 2018 through April 30, 2019; unaudited

Investment Income
Dividends (net of foreign withholding tax of $13,092)		$2,384,235
Rebates on short sales, net of fees	+	1,088,998
Total investment income		3,473,233
Expenses
Investment adviser and administrator fees		1,383,986
Shareholder service fees		272,834
Dividends on short sales		704,781
Custodian fees		20,886
Professional fees		18,780
Registration fees		18,606
Portfolio accounting fees		18,356
Transfer agent fees		9,521
Shareholder reports		5,348
Independent trustees’ fees		4,241
Other expenses	+	2,985
Total expenses		2,460,324
Expense reduction by CSIM and its affiliates	–	9,521
Net expenses	–	2,450,803
Net investment income		1,022,430
Realized and Unrealized Gains (Losses)
Net realized losses on investments		(8,584,925)
Net realized gains on futures contracts		83,499
Net realized gains on short sales	+	1,911,642
Net realized losses		(6,589,784)
Net change in unrealized appreciation (depreciation) on investments		20,362,870
Net change in unrealized appreciation (depreciation) on futures contracts		27,930
Net change in unrealized appreciation (depreciation) on short sales	+	(16,598,823)
Net change in unrealized appreciation (depreciation)	+	3,791,977
Net realized and unrealized losses		(2,797,807)
Decrease in net assets resulting from operations		($1,775,377)

₅₉

Schwab Active Equity Funds | Semiannual Report

See financial notes

Table of Contents

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
	11/1/18-4/30/19		11/1/17-10/31/18
Net investment income		$1,022,430	$1,176,893
Net realized gains (losses)		(6,589,784)	18,114,481
Net change in unrealized appreciation (depreciation)	+	3,791,977	(16,574,229)
Increase (decrease) in net assets from operations		(1,775,377)	2,717,145
Distributions to Shareholders
Total distributions		($19,341,478)	($15,243,329)

Transactions in Fund Shares
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	VALUE	SHARES	VALUE
Shares sold		3,231,056	$49,993,441	6,194,796	$107,567,531
Shares reinvested		1,047,501	15,597,289	728,755	12,461,727
Shares redeemed	+	(6,350,077)	(97,802,419)	(3,400,784)	(58,925,303)
Net transactions in fund shares		(2,071,520)	($32,211,689)	3,522,767	$61,103,955
Shares Outstanding and Net Assets
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		17,781,909	$300,290,169	14,259,142	$251,712,398
Total increase or decrease	+	(2,071,520)	(53,328,544)	3,522,767	48,577,771
End of period		15,710,389	$246,961,625	17,781,909	$300,290,169

₆₀

Schwab Active Equity Funds | Semiannual Report

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Table of Contents

Schwab Health Care Fund

Financial Statements

Financial Highlights

	11/1/18– 4/30/19*	11/1/17– 10/31/18	11/1/16– 10/31/17	11/1/15– 10/31/16	11/1/14– 10/31/15	11/1/13– 10/31/14
Per-Share Data
Net asset value at beginning of period	$25.85	$25.44	$21.56	$26.68	$28.19	$24.57
Income (loss) from investment operations:
Net investment income (loss)	0.14¹	0.23¹	0.21¹	0.19¹	0.14¹	0.23
Net realized and unrealized gains (losses)	0.14	1.96	4.24	(1.52)	1.78	5.84
Total from investment operations	0.28	2.19	4.45	(1.33)	1.92	6.07
Less distributions:
Distributions from net investment income	(0.24)	(0.24)	(0.20)	(0.16)	(0.21)	(0.19)
Distributions from net realized gains	(2.06)	(1.54)	(0.37)	(3.63)	(3.22)	(2.26)
Total distributions	(2.30)	(1.78)	(0.57)	(3.79)	(3.43)	(2.45)
Net asset value at end of period	$23.83	$25.85	$25.44	$21.56	$26.68	$28.19
Total return	1.20%²	9.13%	21.10%	(5.78%)	7.26%	27.06%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.80%³	0.80%	0.81%	0.80%	0.79%	0.80%
Gross operating expenses	0.80%³	0.80%	0.81%	0.80%	0.80%	0.81%
Net investment income (loss)	1.19%³	0.91%	0.89%	0.82%	0.52%	0.93%
Portfolio turnover rate	22%²	45%	42%	54%	75%	57%
Net assets, end of period (x 1,000,000)	$801	$826	$853	$853	$1,118	$1,064

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Not annualized.

Annualized.

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Table of Contents

Schwab Health Care Fund

Portfolio Holdings as of April 30, 2019 (Unaudited)

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

Security	Number of Shares	Value ($)
Common Stock99.2% of net assets

Australia 0.9%
Ansell Ltd.	133,310	2,537,991
Cochlear Ltd.	33,259	4,396,339
		6,934,330

Belgium 0.0%
UCB S.A.	2,556	203,148

Denmark 2.2%
Coloplast A/S, Class B	33,700	3,640,322
Novo Nordisk A/S, Class B	293,361	14,373,087
		18,013,409

France 1.0%
Ipsen S.A.	19,160	2,237,695
Sanofi	64,925	5,664,658
		7,902,353

Germany 0.9%
Carl Zeiss Meditec AG, Class B	4,965	488,356
Evotec SE *	265,017	6,614,618
		7,102,974

Hong Kong 0.3%
China Medical System Holdings Ltd.	1,811,000	1,608,769
Consun Pharmaceutical Group Ltd.	774,000	542,894
		2,151,663

Ireland 3.9%
Allergan plc	55,411	8,145,417
Medtronic plc	237,254	21,070,528
Steris plc *	17,107	2,240,675
		31,456,620

Japan 5.5%
Alfresa Holdings Corp.	15,000	418,559
Astellas Pharma, Inc.	314,700	4,262,256
BML, Inc.	12,400	350,362
Eisai Co., Ltd.	32,900	1,915,789
Hoya Corp.	199,900	14,118,461
Kissei Pharmaceutical Co., Ltd.	30,000	744,260
KYORIN Holdings, Inc.	36,400	684,037
Mani, Inc.	27,100	1,565,935
Nihon Kohden Corp.	74,500	2,175,411
Olympus Corp.	36,000	404,050
Paramount Bed Holdings Co., Ltd.	8,700	408,827
Shionogi & Co., Ltd.	133,400	7,792,295
Sumitomo Dainippon Pharma Co., Ltd.	33,300	735,700
Suzuken Co., Ltd.	67,400	3,886,310

Security	Number of Shares	Value ($)
Takara Bio, Inc.	193,900	4,267,717
Towa Pharmaceutical Co., Ltd.	27,400	674,676
		44,404,645

New Zealand 0.2%
Fisher & Paykel Healthcare Corp., Ltd.	138,133	1,461,289

Republic of Korea 0.3%
Celltrion, Inc. *	1,279	232,624
Huons Co., Ltd.	8,465	466,649
Medy-Tox, Inc.	2,420	1,160,563
Osstem Implant Co., Ltd. *	4,477	221,947
Samjin Pharmaceutical Co., Ltd.	9,841	329,785
		2,411,568

Sweden 0.7%
Swedish Orphan Biovitrum AB *	211,076	3,851,437
Vitrolife AB	93,826	1,975,877
		5,827,314

Switzerland 6.6%
Alcon, Inc. *	43,639	2,513,113
Lonza Group AG *	17,763	5,485,732
Novartis AG	198,337	16,251,747
Roche Holding AG	93,497	24,670,426
Sonova Holding AG	16,053	3,242,419
Tecan Group AG	2,194	495,297
		52,658,734

United Kingdom 1.7%
AstraZeneca plc	45,280	3,373,351
GlaxoSmithKline plc	376,778	7,740,232
Smith & Nephew plc	118,127	2,283,688
		13,397,271

United States 75.0%
Abbott Laboratories	287,700	22,889,412
AbbVie, Inc.	245,382	19,480,877
ACADIA Pharmaceuticals, Inc. *	61,283	1,473,856
Agilent Technologies, Inc.	237,637	18,654,505
Alexion Pharmaceuticals, Inc. *	82,379	11,214,253
Amedisys, Inc. *	25,724	3,288,042
Amgen, Inc.	169,436	30,383,264
AngioDynamics, Inc. *	25,100	515,554
Anthem, Inc.	43,155	11,351,060
Baxter International, Inc.	66,861	5,101,494
Bio-Techne Corp.	18,942	3,875,344
BioCryst Pharmaceuticals, Inc. *	148,153	1,100,777
Biogen, Inc. *	60,700	13,914,868
Boston Scientific Corp. *	71,500	2,654,080
Bristol-Myers Squibb Co.	322,234	14,961,325
Cardinal Health, Inc.	3,353	163,325
CareDx, Inc. *	17,200	468,012
Celgene Corp. *	156,362	14,801,227

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Table of Contents

Schwab Health Care Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	Value ($)
Charles River Laboratories International, Inc. *	11,661	1,638,021
Chemed Corp.	503	164,370
CVS Health Corp.	10,396	565,334
Danaher Corp.	105,900	14,025,396
Edwards Lifesciences Corp. *	18,746	3,300,608
Eli Lilly & Co.	198,921	23,281,714
Emergent BioSolutions, Inc. *	60,452	3,124,159
Genomic Health, Inc. *	52,709	3,390,770
Gilead Sciences, Inc.	337,985	21,982,544
HCA Healthcare, Inc.	59,351	7,551,228
Hill-Rom Holdings, Inc.	57,695	5,851,427
Hologic, Inc. *	181,683	8,426,458
Horizon Pharma plc *	146,315	3,735,422
IDEXX Laboratories, Inc. *	11,761	2,728,552
Illumina, Inc. *	29,684	9,261,408
Incyte Corp. *	53,416	4,102,349
Innoviva, Inc. *	58,179	816,251
Intuitive Surgical, Inc. *	8,681	4,432,779
Jazz Pharmaceuticals plc *	38,400	4,983,168
Johnson & Johnson	572,921	80,896,445
Kura Oncology, Inc. *	54,930	831,640
Ligand Pharmaceuticals, Inc. *	10,102	1,271,337
Luminex Corp.	32,161	733,592
McKesson Corp.	21,000	2,504,250
Merck & Co., Inc.	637,260	50,158,735
Meridian Bioscience, Inc.	127,751	1,470,414
Molina Healthcare, Inc. *	26,072	3,379,713
Mylan N.V. *	199,500	5,384,505
Myriad Genetics, Inc. *	50,578	1,592,195
PDL BioPharma, Inc. *	229,750	751,283
Pfizer, Inc.	1,035,054	42,033,543
Regeneron Pharmaceuticals, Inc. *	22,867	7,846,582
Stryker Corp.	56,899	10,748,790
Tenet Healthcare Corp. *	88,598	1,940,296
The Cooper Cos., Inc.	4,266	1,236,799
Thermo Fisher Scientific, Inc.	83,904	23,279,165
Triple-S Management Corp., Class B *	108,000	2,453,760
UnitedHealth Group, Inc.	123,203	28,714,923
Vanda Pharmaceuticals, Inc. *	33,800	550,602

Security	Number of Shares	Value ($)
Varian Medical Systems, Inc. *	10,628	1,447,215
Vertex Pharmaceuticals, Inc. *	45,183	7,635,023
Waters Corp. *	31,752	6,780,322
Zimmer Biomet Holdings, Inc.	11,621	1,431,242
Zoetis, Inc.	151,873	15,466,746
		600,192,350
Total Common Stock
(Cost $582,157,748)		794,117,668
Security Rate, Maturity Date	Face Amount Local Currency	Value ($)
Short-Term Investments0.6% of net assets

Time Deposits 0.6%
BNP Paribas
U.S. Dollar
1.80%, 05/01/19(a)	5,062,970	5,062,970
Brown Brothers Harriman
Hong Kong Dollar
1.04%, 05/02/19(a)	14	2
Euro
(0.58%), 05/02/19(a)	2,165	2,428
Total Short-Term Investments
(Cost $5,065,400)		5,065,400

*	Non-income producing security.
(a)	The rate shown is the current daily overnight rate.

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Table of Contents

Schwab Health Care Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2019 (see financial note 2(a) for additional information):

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Assets
Common Stock¹	$631,648,970	$—	$—	$631,648,970
Australia	—	6,934,330	—	6,934,330
Belgium	—	203,148	—	203,148
Denmark	—	18,013,409	—	18,013,409
France	—	7,902,353	—	7,902,353
Germany	—	7,102,974	—	7,102,974
Hong Kong	—	2,151,663	—	2,151,663
Japan	—	44,404,645	—	44,404,645
New Zealand	—	1,461,289	—	1,461,289
Republic of Korea	—	2,411,568	—	2,411,568
Sweden	1,975,877	3,851,437	—	5,827,314
Switzerland	2,513,113	50,145,621	—	52,658,734
United Kingdom	—	13,397,271	—	13,397,271
Short-Term Investments¹	—	5,065,400	—	5,065,400
Futures Contracts²	14,639	—	—	14,639
Total	$636,152,599	$163,045,108	$—	$799,197,707

¹	As categorized in Portfolio Holdings.
²	Futures contracts are valued at unrealized appreciation or depreciation.

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Table of Contents

Schwab Health Care Fund

Statement of Assets and Liabilities

As of April 30, 2019; unaudited

Assets
Investments in unaffiliated issuers, at value (cost $587,223,148)		$799,183,068
Deposit with broker for futures contracts		462,000
Receivables:
Foreign tax reclaims		1,207,934
Dividends		830,361
Fund shares sold		344,637
Variation margin on futures contracts		7,000
Interest		252
Income from securities on loan		35
Prepaid expenses	+	25,189
Total assets		802,060,476
Liabilities
Payables:
Investment adviser and administrator fees		353,301
Shareholder service fees		155,973
Fund shares redeemed		720,398
Accrued expenses	+	124,133
Total liabilities		1,353,805
Net Assets
Total assets		802,060,476
Total liabilities	–	1,353,805
Net assets		$800,706,671
Net Assets by Source
Capital received from investors		565,452,116
Total distributable earnings		235,254,555

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$800,706,671		33,600,149		$23.83

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Table of Contents

Schwab Health Care Fund

Statement of Operations

For the period November 1, 2018 through April 30, 2019; unaudited

Investment Income
Dividends (net of foreign withholding tax of $296,910)		$8,023,365
Interest		35,768
Securities on loan, net	+	45,740
Total investment income		8,104,873
Expenses
Investment adviser and administrator fees		2,164,790
Shareholder service fees		960,887
Portfolio accounting fees		31,530
Custodian fees		24,241
Shareholder reports		22,641
Transfer agent fees		17,290
Registration fees		16,081
Professional fees		15,981
Independent trustees’ fees		5,618
Other expenses	+	8,564
Total expenses		3,267,623
Expense reduction by CSIM and its affiliates	–	17,290
Net expenses	–	3,250,333
Net investment income		4,854,540
Realized and Unrealized Gains (Losses)
Net realized gains on investments		19,522,321
Net realized gains on futures contracts		259,700
Net realized losses on foreign currency transactions	+	(44,207)
Net realized gains		19,737,814
Net change in unrealized appreciation (depreciation) on investments		(15,129,459)
Net change in unrealized appreciation (depreciation) on futures contracts		14,639
Net change in unrealized appreciation (depreciation) on foreign currency translations	+	(16,726)
Net change in unrealized appreciation (depreciation)	+	(15,131,546)
Net realized and unrealized gains		4,606,268
Increase in net assets resulting from operations		$9,460,808

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Table of Contents

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
	11/1/18-4/30/19		11/1/17-10/31/18
Net investment income		$4,854,540	$7,705,996
Net realized gains		19,737,814	66,847,299
Net change in unrealized appreciation (depreciation)	+	(15,131,546)	(1,223,836)
Increase in net assets from operations		9,460,808	73,329,459
Distributions to Shareholders
Total distributions		($73,744,967)	($58,703,388)

Transactions in Fund Shares
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	VALUE	SHARES	VALUE
Shares sold		2,206,992	$54,078,703	2,353,386	$60,438,285
Shares reinvested		2,764,704	64,998,182	2,159,882	51,772,373
Shares redeemed	+	(3,312,714)	(79,854,864)	(6,109,931)	(154,310,987)
Net transactions in fund shares		1,658,982	$39,222,021	(1,596,663)	($42,100,329)
Shares Outstanding and Net Assets
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		31,941,167	$825,768,809	33,537,830	$853,243,067
Total increase or decrease	+	1,658,982	(25,062,138)	(1,596,663)	(27,474,258)
End of period		33,600,149	$800,706,671	31,941,167	$825,768,809

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Table of Contents

Schwab International Core Equity Fund

Financial Statements

Financial Highlights

	11/1/18– 4/30/19*	11/1/17– 10/31/18	11/1/16– 10/31/17	11/1/15– 10/31/16	11/1/14– 10/31/15	11/1/13– 10/31/14
Per-Share Data
Net asset value at beginning of period	$9.64	$11.27	$9.20	$9.62	$9.77	$9.82
Income (loss) from investment operations:
Net investment income (loss)¹	0.11	0.24	0.22	0.22	0.19	0.29
Net realized and unrealized gains (losses)	0.46	(1.58)	2.08	(0.45)	(0.01)	(0.08)
Total from investment operations	0.57	(1.34)	2.30	(0.23)	0.18	0.21
Less distributions:
Distributions from net investment income	(0.25)	(0.26)	(0.23)	(0.19)	(0.15)	(0.26)
Distributions from net realized gains	—	(0.03)	—	—	(0.18)	—
Total distributions	(0.25)	(0.29)	(0.23)	(0.19)	(0.33)	(0.26)
Net asset value at end of period	$9.96	$9.64	$11.27	$9.20	$9.62	$9.77
Total return	6.22%²	(12.18%)	25.58%	(2.41%)	2.05%	2.20%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.86%³	0.86%	0.86%	0.86%	0.86%	0.86%
Gross operating expenses	0.89%³	0.89%	0.90%	0.91%	0.92%	0.98%
Net investment income (loss)	2.38%³	2.22%	2.15%	2.40%	2.02%	2.95%
Portfolio turnover rate	43%²	98%	85%	90%	87%	90%
Net assets, end of period (x 1,000,000)	$1,083	$1,166	$1,227	$772	$679	$423

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Not annualized.

Annualized.

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Table of Contents

Schwab International Core Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited)

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

Security	Number of Shares	Value ($)
Common Stock98.7% of net assets

Australia 5.3%
AGL Energy Ltd.	91,464	1,434,919
Australia & New Zealand Banking Group Ltd.	406,469	7,797,936
Beach Energy Ltd.	2,370,680	3,554,949
Bravura Solutions Ltd.	273,176	1,112,728
Cochlear Ltd.	7,007	926,220
Commonwealth Bank of Australia	43,223	2,271,594
Evolution Mining Ltd.	1,062,243	2,394,484
Inghams Group Ltd.	1,574,675	4,941,296
Macquarie Group Ltd.	98,557	9,366,274
McMillan Shakespeare Ltd.	84,975	794,729
Qantas Airways Ltd.	990,995	3,920,102
Regis Resources Ltd.	565,201	1,912,198
Sandfire Resources NL	1,064,515	5,294,914
Saracen Mineral Holdings Ltd. *	786,420	1,551,204
Telstra Corp., Ltd.	2,805,203	6,681,552
Westpac Banking Corp.	120,076	2,332,644
Whitehaven Coal Ltd.	376,828	1,117,609
		57,405,352

Austria 0.8%
Erste Group Bank AG	103,477	4,143,337
OMV AG	71,668	3,844,209
Wienerberger AG	47,996	1,102,991
		9,090,537

Belgium 0.5%
Colruyt S.A.	28,565	2,062,081
UCB S.A.	48,067	3,820,315
		5,882,396

Canada 1.3%
Constellation Software, Inc.	1,831	1,615,563
Kirkland Lake Gold Ltd.	144,100	4,658,484
OceanaGold Corp.	340,499	955,644
Parex Resources, Inc. *	413,185	7,038,055
		14,267,746

Denmark 1.7%
Novo Nordisk A/S, Class B	280,557	13,745,761
Topdanmark A/S	86,973	4,692,625
		18,438,386

Finland 0.7%
Fortum Oyj	280,144	5,941,998
Valmet Oyj	70,401	1,939,336
		7,881,334

Security	Number of Shares	Value ($)
France 10.2%
BNP Paribas S.A.	35,156	1,871,463
Christian Dior SE	22,090	10,938,612
Credit Agricole S.A.	118,311	1,624,652
Dassault Aviation S.A.	2,542	3,846,146
Dassault Systemes SE	10,600	1,678,647
Electricite de France S.A.	164,315	2,373,026
Engie S.A.	475,405	7,056,201
Faurecia S.A.	30,287	1,541,048
Gaztransport Et Technigaz S.A.	65,022	5,883,865
Ipsen S.A.	53,236	6,217,428
Kering S.A.	12,364	7,316,451
L'Oreal S.A.	56,114	15,434,294
LVMH Moet Hennessy Louis Vuitton SE	17,500	6,870,799
Neopost S.A.	108,841	2,669,724
Peugeot S.A.	487,604	12,784,429
Sanofi	24,446	2,132,896
Societe Generale S.A.	167,991	5,327,249
Thales S.A.	13,297	1,588,692
TOTAL S.A.	241,228	13,410,048
		110,565,670

Germany 8.5%
adidas AG	54,762	14,106,033
Allianz SE	121,744	29,427,243
Covestro AG	112,464	6,179,626
Deutsche Boerse AG	21,139	2,824,643
Deutsche Lufthansa AG	139,656	3,378,800
Deutsche Pfandbriefbank AG	345,837	4,828,886
Deutsche Telekom AG	310,741	5,206,434
Deutsche Wohnen SE	32,726	1,474,158
HOCHTIEF AG	34,888	5,216,064
MTU Aero Engines AG	31,772	7,495,958
Nemetschek SE	25,031	4,630,739
Siemens AG	24,797	2,973,215
Siltronic AG	39,868	3,906,387
		91,648,186

Hong Kong 4.6%
AIA Group Ltd.	304,800	3,120,980
Anhui Conch Cement Co., Ltd., Class H(a)	205,000	1,251,282
China SCE Group Holdings Ltd.	2,211,000	1,045,054
CITIC Ltd.	3,702,259	5,391,428
CK Asset Holdings Ltd.	854,000	6,866,620
CK Infrastructure Holdings Ltd.	283,000	2,294,995
CNOOC Ltd.	1,283,000	2,330,356
IGG, Inc.	1,840,000	2,332,848
Kerry Properties Ltd.	578,500	2,476,192
Lenovo Group Ltd.	10,046,000	9,309,346
Tencent Holdings Ltd.	210,723	10,386,040
Weichai Power Co., Ltd., Class H(a)	1,628,000	2,665,583
		49,470,724

Italy 2.9%
A2A S.p.A.	1,202,684	2,012,854
Assicurazioni Generali S.p.A.	105,330	2,043,617

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Table of Contents

Schwab International Core Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	Value ($)
Eni S.p.A.	295,189	5,030,357
Fiat Chrysler Automobiles N.V.	132,950	2,048,945
Italgas S.p.A.	1,079,573	6,743,554
Moncler S.p.A.	136,797	5,624,308
UniCredit S.p.A.	545,885	7,557,289
		31,060,924

Japan 23.9%
AEON REIT Investment Corp.	4,723	5,708,179
Astellas Pharma, Inc.	463,600	6,278,938
Bandai Namco Holdings, Inc.	53,400	2,560,041
Capcom Co., Ltd.	402,700	9,086,397
Central Japan Railway Co.	16,000	3,440,629
Daikyonishikawa Corp.	139,402	1,405,988
Daiwabo Holdings Co., Ltd.	79,000	4,042,886
Fancl Corp.	56,000	1,661,549
Fuji Electric Co., Ltd.	72,000	2,552,472
Haseko Corp.	298,800	3,613,677
Hazama Ando Corp.	336,500	2,262,799
Heiwa Real Estate REIT, Inc.	1,461	1,649,610
Heiwado Co., Ltd.	33,900	624,622
Hitachi Ltd.	276,100	9,182,596
Honda Motor Co., Ltd.	76,000	2,120,623
Hoya Corp.	255,200	18,024,169
Invincible Investment Corp.	15,771	7,980,309
Japan Airlines Co., Ltd.	158,700	5,175,743
Japan Aviation Electronics Industry Ltd.	168,000	2,718,158
Japan Post Holdings Co., Ltd.	777,100	8,703,242
Japan Securities Finance Co., Ltd.	114,300	593,927
Kakaku.com, Inc.	225,500	4,645,865
Kanamoto Co., Ltd.	156,800	3,722,155
Kenedix Office Investment Corp.	637	4,261,538
Keyence Corp.	5,000	3,123,967
Kirin Holdings Co., Ltd.	80,300	1,826,702
Kose Corp.	21,300	3,990,040
Makino Milling Machine Co., Ltd.	72,000	3,054,835
Mitsubishi Heavy Industries Ltd.	70,000	2,917,252
Mitsubishi UFJ Financial Group, Inc.	2,702,700	13,409,514
Mitsubishi UFJ Lease & Finance Co., Ltd.	800,800	4,083,220
Mitsui & Co., Ltd.	136,000	2,199,744
Morinaga & Co., Ltd.	50,000	2,087,428
Nihon Unisys Ltd.	74,452	1,908,673
Nippon Telegraph & Telephone Corp.	50,000	2,080,420
ORIX Corp.	155,400	2,201,370
Recruit Holdings Co., Ltd.	91,400	2,752,407
Round One Corp.	57,000	768,086
Sankyu, Inc.	99,380	4,766,222
Seino Holdings Co., Ltd.	465,000	6,330,308
Shionogi & Co., Ltd.	185,119	10,813,357
Shiseido Co., Ltd.	35,645	2,803,763
Showa Denko K.K.	30,000	1,024,201
Sojitz Corp.	755,000	2,599,277
Sony Corp.	393,998	19,844,931
Sumitomo Mitsui Construction Co., Ltd.	1,177,200	7,682,777
Sumitomo Mitsui Financial Group, Inc.	206,500	7,505,491
Sumitomo Mitsui Trust Holdings, Inc.	35,000	1,221,191
Suzuken Co., Ltd.	100,000	5,766,038
Takuma Co., Ltd.	83,000	1,000,778
The Japan Steel Works Ltd.	198,700	3,840,318
Toei Co., Ltd.	16,000	2,077,778
Toho Holdings Co., Ltd.	43,300	1,014,561
Tokuyama Corp.	392,700	9,756,649
Tokyo Electric Power Co. Holdings, Inc. *	208,000	1,174,862
Tokyo Steel Manufacturing Co., Ltd.	454,600	3,893,114
Tomy Co., Ltd.	105,500	1,131,242

Security	Number of Shares	Value ($)
Toshiba TEC Corp.	96,900	2,677,788
Toyota Motor Corp.	63,800	3,949,886
		259,294,302

Netherlands 5.3%
ABN AMRO Group N.V. CVA	100,054	2,356,500
Adyen N.V. *	1,457	1,187,452
Airbus SE	40,988	5,612,473
ASML Holding N.V.	12,232	2,554,173
ASR Nederland N.V.	36,226	1,611,841
Heineken Holding N.V.	84,413	8,593,578
Koninklijke Ahold Delhaize N.V.	659,722	15,900,345
Koninklijke Philips N.V.	29,091	1,249,276
SBM Offshore N.V.	234,010	4,342,386
Unilever N.V. CVA	69,678	4,215,837
Wolters Kluwer N.V.	140,392	9,799,007
		57,422,868

New Zealand 0.4%
a2 Milk Co., Ltd. *	112,000	1,259,059
Spark New Zealand Ltd.	1,130,460	2,773,780
		4,032,839

Norway 2.2%
DNB A.S.A.	78,089	1,501,589
DNO A.S.A.	2,005,691	4,553,563
Equinor A.S.A.	301,299	6,716,445
Telenor A.S.A.	547,566	11,007,093
		23,778,690

Portugal 0.4%
Altri SGPS S.A.	141,311	1,107,920
Banco Comercial Portugues S.A., Class R *	12,057,489	3,384,451
		4,492,371

Republic of Korea 1.1%
LG Electronics, Inc.	25,000	1,624,301
Samsung Electronics Co., Ltd.	263,580	10,363,231
		11,987,532

Singapore 0.2%
CapitaLand Ltd.	654,000	1,699,493

Spain 2.9%
ACS Actividades de Construccion y Servicios S.A.	259,318	11,925,052
Amadeus IT Group S.A.	114,489	9,124,388
Banco Santander S.A.	383,440	1,943,801
Cia de Distribucion Integral Logista Holdings S.A.	129,165	3,064,428
Ence Energia y Celulosa S.A.	396,094	2,134,274
Telefonica S.A.	415,915	3,467,630
		31,659,573

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Schwab International Core Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

Security	Number of Shares	Value ($)
Sweden 1.0%
Boliden AB	136,132	4,051,279
Kindred Group plc SDR	562,342	4,910,785
Volvo AB, B Shares	130,411	2,090,022
		11,052,086

Switzerland 8.7%
BKW AG	23,813	1,518,263
Cembra Money Bank AG	71,960	6,683,026
Kardex AG	10,018	1,553,407
Nestle S.A.	248,700	23,944,240
Novartis AG	166,729	13,661,785
Pargesa Holding S.A.	55,590	4,368,758
Partners Group Holding AG	5,780	4,359,650
Roche Holding AG	121,293	32,004,769
Temenos AG *	516	85,835
UBS Group AG *	427,492	5,732,435
		93,912,168

Taiwan 0.3%
Chicony Electronics Co., Ltd.	199,000	490,562
Inventec Corp.	2,043,000	1,641,440
Taiwan Semiconductor Manufacturing Co., Ltd.	144,000	1,209,028
		3,341,030

United Kingdom 15.8%
3i Group plc	713,002	9,976,623
Anglo American plc	61,949	1,607,558
Ashtead Group plc	271,580	7,541,026
AstraZeneca plc	58,173	4,333,877
Auto Trader Group plc	796,739	5,889,783
Avast plc *	292,900	1,159,585
Aviva plc	88,650	497,870
Barclays plc	666,362	1,430,016
BHP Group plc	907,490	21,420,903
BP plc	732,205	5,324,374
BT Group plc	1,202,000	3,586,784
Carnival plc	98,132	5,202,430

Security	Number of Shares	Value ($)
Diageo plc	81,281	3,426,622
Direct Line Insurance Group plc	1,235,595	5,316,825
Dunelm Group plc	62,556	697,449
GlaxoSmithKline plc	339,965	6,983,975
Great Portland Estates plc	171,529	1,690,410
HSBC Holdings plc	186,829	1,627,834
Imperial Brands plc	278,419	8,858,785
International Consolidated Airlines Group S.A.	629,982	4,451,865
Legal & General Group plc	1,783,890	6,487,169
Lloyds Banking Group plc	15,568,145	12,732,175
Next plc	61,023	4,594,647
Rightmove plc	310,436	2,195,125
Rio Tinto plc	39,241	2,289,283
Royal Dutch Shell plc, A Shares	351,976	11,214,458
Smith & Nephew plc	158,503	3,064,256
Tesco plc	2,594,516	8,464,972
Tullow Oil plc	296,912	870,582
Unilever plc	298,669	18,103,844
		171,041,105
Total Common Stock
(Cost $1,006,486,330)		1,069,425,312

Other Investment Company0.4% of net assets

Money Market Fund 0.4%
State Street Institutional U.S. Government Money Market Fund, Premier Class 2.37%(b)	4,198,733	4,198,733
Total Other Investment Company
(Cost $4,198,733)		4,198,733

*	Non-income producing security.
(a)	Represents a China based company which is listed on the Hong Kong exchange and traded in Hong Kong dollars.
(b)	The rate shown is the 7-day yield.

CVA —	Dutch Certificate
REIT —	Real Estate Investment Trust
SDR —	Swedish Depositary Receipt

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Schwab International Core Equity Fund

Portfolio Holdings as of April 30, 2019 (Unaudited) (continued)

The following is a summary of the inputs used to value the fund’s investments as of April 30, 2019 (see financial note 2(a) for additional information):

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Assets
Common Stock¹	$—	$578,899,900	$—	$578,899,900
Austria	4,143,337	4,947,200	—	9,090,537
Canada	14,267,746	—	—	14,267,746
France	3,846,146	106,719,524	—	110,565,670
Germany	3,906,387	87,741,799	—	91,648,186
Switzerland	1,553,407	92,358,761	—	93,912,168
United Kingdom	697,449	170,343,656	—	171,041,105
Other Investment Company¹	4,198,733	—	—	4,198,733
Total	$32,613,205	$1,041,010,840	$—	$1,073,624,045

¹	As categorized in Portfolio Holdings.

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Schwab International Core Equity Fund

Statement of Assets and Liabilities

As of April 30, 2019; unaudited

Assets
Investments in unaffiliated issuers, at value (cost $1,010,685,063)		$1,073,624,045
Foreign currency, at value (cost $426,644)		427,067
Receivables:
Investments sold		7,756,120
Dividends		4,914,262
Foreign tax reclaims		2,101,991
Fund shares sold		1,429,625
Prepaid expenses	+	30,919
Total assets		1,090,284,029
Liabilities
Payables:
Investments bought		4,950,130
Investment adviser and administrator fees		542,275
Shareholder service fees		207,021
Fund shares redeemed		917,155
Due to custodian		6,677
Accrued expenses	+	567,948
Total liabilities		7,191,206
Net Assets
Total assets		1,090,284,029
Total liabilities	–	7,191,206
Net assets		$1,083,092,823
Net Assets by Source
Capital received from investors		1,101,586,243
Total distributable loss		(18,493,420)

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$1,083,092,823		108,695,415		$9.96

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Schwab International Core Equity Fund

Statement of Operations

For the period November 1, 2018 through April 30, 2019; unaudited

Investment Income
Dividends (net of foreign withholding tax of $1,872,928)		$17,603,852
Expenses
Investment adviser and administrator fees		3,152,520
Shareholder service fees		1,318,499
Custodian fees		168,236
Portfolio accounting fees		38,872
Registration fees		36,970
Shareholder reports		28,508
Professional fees		24,137
Transfer agent fees		23,503
Independent trustees’ fees		6,528
Other expenses	+	12,580
Total expenses		4,810,353
Expense reduction by CSIM and its affiliates	–	135,927
Net expenses	–	4,674,426
Net investment income		12,929,426
Realized and Unrealized Gains (Losses)
Net realized losses on investments		(78,506,273)
Net realized losses on futures contracts		(118,380)
Net realized gains on foreign currency transactions	+	29,940
Net realized losses		(78,594,713)
Net change in unrealized appreciation (depreciation) on investments		128,275,499
Net change in unrealized appreciation (depreciation) on foreign currency translations	+	(6,318)
Net change in unrealized appreciation (depreciation)	+	128,269,181
Net realized and unrealized gains		49,674,468
Increase in net assets resulting from operations		$62,603,894

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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
	11/1/18-4/30/19		11/1/17-10/31/18
Net investment income		$12,929,426	$30,286,755
Net realized losses		(78,594,713)	(5,255,760)
Net change in unrealized appreciation (depreciation)	+	128,269,181	(202,582,332)
Increase (decrease) in net assets from operations		62,603,894	(177,551,337)
Distributions to Shareholders
Total distributions		($29,979,566)	($32,281,172)

Transactions in Fund Shares
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	VALUE	SHARES	VALUE
Shares sold		11,108,207	$104,978,646	43,839,389	$487,710,481
Shares reinvested		2,751,748	24,710,692	2,423,051	26,411,257
Shares redeemed	+	(26,177,024)	(245,500,617)	(34,071,759)	(364,936,798)
Net transactions in fund shares		(12,317,069)	($115,811,279)	12,190,681	$149,184,940
Shares Outstanding and Net Assets
		11/1/18-4/30/19		11/1/17-10/31/18
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		121,012,484	$1,166,279,774	108,821,803	$1,226,927,343
Total increase or decrease	+	(12,317,069)	(83,186,951)	12,190,681	(60,647,569)
End of period		108,695,415	$1,083,092,823	121,012,484	$1,166,279,774

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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 Core Equity Fund	Schwab Target 2040 Fund
Schwab Dividend Equity Fund	Schwab Target 2045 Fund
Schwab Large-Cap Growth Fund	Schwab Target 2050 Fund
Schwab Small-Cap Equity Fund	Schwab Target 2055 Fund
Schwab Hedged Equity Fund	Schwab Target 2060 Fund
Schwab Health Care Fund	Schwab Fundamental US Large Company Index Fund
Schwab International Core Equity Fund	Schwab Fundamental US Small Company Index Fund
Schwab S&P 500 Index Fund	Schwab Fundamental International Large Company Index Fund
Schwab Small-Cap Index Fund^®	Schwab Fundamental International Small Company Index Fund
Schwab Total Stock Market Index Fund^®	Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab U.S. Large-Cap Growth Index Fund	Schwab Fundamental Global Real Estate Index Fund
Schwab U.S. Large-Cap Value Index Fund	Schwab Target 2010 Index Fund
Schwab U.S. Mid-Cap Index Fund	Schwab Target 2015 Index Fund
Schwab International Index Fund^®	Schwab Target 2020 Index Fund
Schwab MarketTrack All Equity Portfolio™	Schwab Target 2025 Index Fund
Schwab MarketTrack Growth Portfolio™	Schwab Target 2030 Index Fund
Schwab MarketTrack Balanced Portfolio™	Schwab Target 2035 Index Fund
Schwab MarketTrack Conservative Portfolio™	Schwab Target 2040 Index Fund
Laudus International MarketMasters Fund™	Schwab Target 2045 Index Fund
Schwab Balanced Fund	Schwab Target 2050 Index Fund
Schwab Target 2010 Fund	Schwab Target 2055 Index Fund
Schwab Target 2015 Fund	Schwab Target 2060 Index Fund
Schwab Target 2020 Fund	Schwab Monthly Income Fund - Moderate Payout
Schwab Target 2025 Fund	Schwab Monthly Income Fund - Enhanced Payout
Schwab Target 2030 Fund	Schwab Monthly Income Fund - Maximum Payout
Schwab Target 2035 Fund

2. Significant Accounting Policies:

The funds invest in certain other investment companies (underlying funds). For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.

(a) Security Valuation:

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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:

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

• Underlying funds:Mutual funds are valued at their respective NAVs.

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 and futures contracts. 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.

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Schwab Active Equity Funds

Financial Notes, unaudited(continued)

2. Significant Accounting Policies (continued):

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.

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, 2019 are disclosed in the Portfolio Holdings.

(b) Accounting Policies for certain Portfolio Investments (if held):

Securities Lending: Under the trust’s Securities Lending Program, a fund (lender) may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating under Rule 2a-7 of the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the funds or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. Securities lending income, as disclosed in each fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. The aggregate 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. Securities lending fees paid to the unaffiliated lending agents start at 10% of gross lending revenue, with subsequent breakpoints to a low of 7.5%. Any expenses charged by the cash collateral fund are in addition to these fees.

As of April 30, 2019, the funds had securities on loan, all of which were classified as common stocks. The value of the securities on loan and the related collateral as of April 30, 2019, if any, are disclosed in each fund’s Portfolio Holdings. The value of the securities on loan and the investment of cash collateral are also disclosed in each fund’s Statement of Assets and Liabilities.

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Schwab Active Equity Funds

Financial Notes, unaudited(continued)

2. Significant Accounting Policies (continued):

institution including, but not limited to, freeze, seizure or diminution. The funds bear the risk associated with the repayment of principal and payment of interest on such instruments by the institution with which the deposit is ultimately placed. Balances in the CMS Sweep are accounted for on a cost basis, which approximates market value.

Short Sales: Dividends declared on short positions are recorded on the ex-date as an expense. 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.

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. A fund may also earn rebates as an element of the broker arrangement, which are recorded as an offset to stock loan fees on short sales transactions. The stock loan fees on short sales are recognized on the Statement of Operations. In the event that rebates exceed the stock loan fees on short sales, the net rebates are recognized as a component of investment income on the Statement of Operations.

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:

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Schwab Active Equity Funds

Financial Notes, unaudited(continued)

2. Significant Accounting Policies (continued):

(e) Expenses:

(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) Accounting Estimates:

(h) Federal Income Taxes:

(i) Foreign Taxes:

(j) Indemnification:

(k) Recent Accounting Standards:

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.

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Schwab Active Equity Funds

Financial Notes, unaudited(continued)

3. Risk Factors (continued):

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.

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

Derivatives Risk. The principal type of derivative used by a fund is a futures contract. A futures contract is an agreement to buy or sell a financial instrument at a specific price on a specific day. The use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC), could cause a fund to become a commodity pool, which would require the fund to comply with certain CFTC rules. 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 lack of availability risk, credit risk, leverage 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 gains. 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 fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the fund may have to sell them at a loss.

Exchange-Traded Fund (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.

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

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Financial Notes, unaudited(continued)

3. Risk Factors (continued):

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. 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. The price of a borrowed security in a short sale transaction may be more or less than the price at which the security was sold by the fund. 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 and could result in a loss to the fund.

Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting 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 developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with a fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.

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.

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

4. Affiliates and Affiliated Transactions:

Investment Adviser

Charles Schwab Investment Management, Inc. (CSIM or the investment adviser), a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement between CSIM and the trust.

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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:

% of Average Daily Net Assets	Schwab Core Equity Fund	Schwab Dividend Equity Fund	Schwab Large-Cap Growth Fund	Schwab Small-Cap Equity Fund	Schwab Hedged Equity Fund	Schwab International Core Equity Fund
Flat rate	0.47%	0.62%	0.72%	0.81%	1.05%	0.58%

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

For the period ended April 30, 2019, the aggregate advisory fee paid to CSIM by the Schwab Health Care Fund was 0.53%, as a percentage of the fund’s average daily net assets.

Shareholder Servicing

The Board has adopted a Shareholder Servicing Plan (the Plan) on behalf of the funds. The Plan enables each fund to bear expenses relating to the provision by financial intermediaries, including Charles Schwab & Co., Inc. (Schwab), a broker-dealer affiliate of CSIM, (together, service providers), of certain shareholder services to the current shareholders of the funds.

Pursuant to the Plan, each fund’s shares are subject to an annual shareholder servicing fee up to 0.25%. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab, as distributor of the funds (or, in the case of payments made to Schwab acting as a service provider, pursuant to Schwab’s written agreement with the funds), and a fund will pay no more than 0.25% of the average annual daily net asset value of the fund shares owned by shareholders holding shares through such service provider. Payments under the Plan are made as described above without regard to whether the fee is more or less than the service provider’s actual cost of providing the services, and if more, such excess may be retained as profit by the service provider.

Expense Limitation

Although these agreements specify certain fees for these services, CSIM and its affiliates have made an additional agreement with the funds, for so long as CSIM serves as the investment adviser to the funds, which may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes and certain non-routine expenses (expense limitation). The expense limitation as a percentage of average daily net assets is as follows:

Schwab Core Equity Fund	Schwab Dividend Equity Fund	Schwab Large-Cap Growth Fund	Schwab Small-Cap Equity Fund	Schwab Hedged Equity Fund	Schwab Health Care Fund	Schwab International Core Equity Fund
0.75%	0.89%	0.99%	1.12%	1.33%*	0.82%	0.86%

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

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Financial Notes, unaudited(continued)

4. Affiliates and Affiliated Transactions (continued):

Investments from Affiliates

	Underlying Funds
	Schwab Core Equity Fund	Schwab Dividend Equity Fund	Schwab Small-Cap Equity Fund	Schwab International Core Equity Fund
Schwab Balanced Fund	7.8%	—%	8.0%	—%
Schwab Monthly Income Fund - Enhanced Payout	—%	1.8%	—%	—%
Schwab Monthly Income Fund - Maximum Payout	—%	0.5%	—%	—%
Schwab Monthly Income Fund - Moderate Payout	—%	1.4%	—%	—%
Schwab Target 2010 Fund	0.1%	0.0%*	0.1%	0.2%
Schwab Target 2015 Fund	0.2%	0.0%*	0.2%	0.3%
Schwab Target 2020 Fund	1.6%	0.1%	1.7%	2.5%
Schwab Target 2025 Fund	2.3%	0.2%	2.4%	3.4%
Schwab Target 2030 Fund	4.8%	1.2%	5.4%	6.9%
Schwab Target 2035 Fund	2.5%	0.9%	3.1%	3.7%
Schwab Target 2040 Fund	5.7%	2.7%	7.7%	8.6%
Schwab Target 2045 Fund	0.9%	0.5%	1.3%	1.4%
Schwab Target 2050 Fund	0.9%	0.5%	1.3%	1.4%
Schwab Target 2055 Fund	0.5%	0.3%	0.8%	0.8%
Schwab Target 2060 Fund	0.1%	0.1%	0.1%	0.1%

*	Less than 0.05%

Interfund Borrowing and Lending

5. Board of Trustees:

The Board may include people who are officers and/or directors of CSIM or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of these interested persons for their services as trustees, but it did pay non-interested persons (independent trustees), as noted on each fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.

6. Borrowing from Banks:

During the period, the funds were participants with other U.S. registered investment companies managed by CSIM in a joint, syndicated, committed $750 million line of credit (the Syndicated Credit Facility), maturing on October 3, 2019. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by a fund, each fund paid a commitment fee of 0.15% per annum on the funds’ proportionate share of the unused portion of the Syndicated Credit Facility.

During the period, the funds were participants with other U.S. registered investment companies managed by CSIM in a joint, unsecured, uncommitted $500 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, which matured on November 30, 2018. On November 30, 2018, the Uncommitted Credit Facility was amended to run for a new 364 day period, maturing November 29, 2019. Under the terms of the Uncommitted Credit Facility, each fund pays interest on the amount a fund borrows. There were no borrowings from either line of credit during the period.

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Financial Notes, unaudited(continued)

6. Borrowing from Banks (continued):

The funds also have access to custodian overdraft facilities. A fund may have utilized the overdraft facility and incurred an interest expense, which is 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 of Investment Securities:

For the period ended April 30, 2019, purchases and sales of securities (excluding short-term obligations) were as follows:

	Purchases of Securities	Sales of Securities
Schwab Core Equity Fund	$1,121,571,874	$1,212,801,687
Schwab Dividend Equity Fund	365,677,107	746,922,498
Schwab Large-Cap Growth Fund	66,915,056	135,932,717
Schwab Small-Cap Equity Fund	350,102,424	327,097,530
Schwab Hedged Equity Fund*	227,874,750	256,041,081
Schwab Health Care Fund	184,422,361	209,635,926
Schwab International Core Equity Fund	467,070,760	606,578,319

*	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 current value and variation margin for futures contracts held at April 30, 2019 are presented on the Portfolio Holdings and Statement of Assets and Liabilities, respectively. The net realized and change in unrealized gains (losses) on futures contracts are presented on the Statement of Operations. Refer to financial note 2(b) for the funds’ accounting policies with respect to futures contracts and financial note 3 for disclosures concerning the risks of investing in futures contracts. During the period ended April 30, 2019, the month-end average notional amounts of futures contracts held by the funds and the month-end average number of contracts held were as follows:

	Notional Amounts	Number of Contracts
Schwab Core Equity Fund	$4,134,946	31
Schwab Dividend Equity Fund	36,440,143*	279*
Schwab Large-Cap Growth Fund	639,017	5
Schwab Small-Cap Equity Fund	6,330,593	84
Schwab Hedged Equity Fund	522,855	4
Schwab Health Care Fund	1,628,646	12
Schwab International Core Equity Fund	1,139,914*	13*

*	During the period, the fund did not hold futures contracts at any month-end. The average notional amounts and number of contracts were calculated by aggregating the highest daily values held each month during the period.

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Financial Notes, unaudited(continued)

9. Federal Income Taxes:

As of April 30, 2019, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:

	Schwab Core Equity Fund	Schwab Dividend Equity Fund	Schwab Large-Cap Growth Fund	Schwab Small-Cap Equity Fund	Schwab Hedged Equity Fund	Schwab Health Care Fund	Schwab International Core Equity Fund
Tax cost	$1,730,956,108	$764,826,837	$127,635,431	$605,085,192	$127,925,395	$587,369,904	$1,014,043,812
Gross unrealized appreciation	$511,326,210	$157,261,686	$62,398,538	$78,835,437	$37,857,450	$229,540,544	$91,244,975
Gross unrealized depreciation	(21,973,308)	(17,606,662)	(2,907,179)	(48,259,454)	(24,982,891)	(17,712,741)	(31,664,742)
Net unrealized appreciation (depreciation)	$489,352,902	$139,655,024	$59,491,359	$30,575,983	$12,874,559	$211,827,803	$59,580,233

Expiration Date	Schwab Core Equity Fund	Schwab Dividend Equity Fund	Schwab Large-Cap Growth Fund	Schwab Small-Cap Equity Fund	Schwab Hedged Equity Fund
No expiration	$—	$—	$—	$—	$—

Expiration Date	Schwab Health Care Fund	Schwab International Core Equity Fund
No expiration	$—	$8,481,486
Total	$—	$8,481,486

	Schwab Core Equity Fund	Schwab Dividend Equity Fund	Schwab Large-Cap Growth Fund	Schwab Small-Cap Equity Fund	Schwab Hedged Equity Fund
Ordinary income	$106,313,933	$66,835,738	$8,808,544	$20,943,065	$125,442
Long-term capital gains	145,688,756	79,534,655	10,650,342	61,623,293	15,117,887

	Schwab Health Care Fund	Schwab International Core Equity Fund
Ordinary income	$14,878,678	$28,754,784
Long-term capital gains	43,824,710	3,526,388

10. Subsequent Events:

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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 and Laudus Trust. The Fund Complex includes 98 funds.

Independent Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	Retired/Private Investor (Jan. 2009 – present). Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) (investment management firm) and President, PIMCO Funds.	98	None
John F. Cogan 1947 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust since 2010; Schwab Strategic Trust since 2016)	Senior Fellow (Oct. 1979 – present), The Hoover Institution at Stanford University (public policy think tank); Senior Fellow (2000 – present), Stanford Institute for Economic Policy Research; Professor of Public Policy (1994 – 2015), Stanford University.	98	Director (2005 – present), Gilead Sciences, Inc.
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018)	President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services).	98	None
Stephen Timothy Kochis 1946 Trustee (Trustee of Schwab Strategic Trust since 2012; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	CEO and Owner (May 2012 – present), Kochis Global (wealth management consulting).	98	None

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Independent Trustees (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016)	Private Investor.	98	Director (2003 – present), Symantec Corporation Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – present), Adamas Pharmaceuticals, Inc.
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019)	Chief Investment Officer (2009-2017), CareGroup Healthcare System, Inc. (healthcare).	98	None
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016)	Retired. Executive Vice President and General Manager of Small Business Group (Dec. 2008 – Sept. 2013), Intuit, Inc. (financial software and services firm for consumers and small businesses).	98	Director (2008 – present), KLA-Tencor Corporation
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016)	Consultant (2008 – present), Patmore Management Consulting (management consulting).	98	None
Gerald B. Smith 1950 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2000; Laudus Trust since 2010; Schwab Strategic Trust since 2016)	Chairman, Chief Executive Officer and Founder (Mar. 1990 – present), Smith Graham & Co. (investment advisors).	98	Director (2012 – present), Eaton

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Interested Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Walter W. Bettinger II² 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010)	Director, President and Chief Executive Officer (Oct. 2008 – present), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – present) and Director (May 2008 – present), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank; Director (Nov. 2017 – present), Charles Schwab Premier Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (July 2016 – present), Charles Schwab Investment Management, Inc.	98	Director (2008 – present), The Charles Schwab Corporation
Jonathan de St. Paer² 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019)	Director and Chief Executive Officer (Apr. 2019 – present) and President (Oct. 2018 – present) Charles Schwab Investment Management, Inc.; Trustee and Chief Executive Officer (Apr. 2019 – present) and President (Nov. 2018 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc.	98	None
Joseph R. Martinetto² 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016)	Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank; Director (Nov. 2017 – present), Charles Schwab Premier Bank; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.	98	None

Officers of the Trust
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served³)	Principal Occupations During the Past Five Years
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018)	Director and Chief Executive Officer (Apr. 2019 – present) and President (Oct. 2018 – present) Charles Schwab Investment Management, Inc.; Trustee and Chief Executive Officer (Apr. 2019 – present) and President (Nov. 2018 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc.

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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
Mark Fischer 1970 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013)	Treasurer and Chief Financial Officer (Jan. 2016 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Funds; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management.
George Pereira 1964 Senior Vice President and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2004; Laudus Trust since 2006; Schwab Strategic Trust since 2009)	Senior Vice President and Chief Financial Officer (Nov. 2004 – present) and Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Operating Officer (Jan. 2016 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Treasurer and Chief Financial Officer (June 2006 – Dec. 2015), Laudus Funds; Treasurer and Principal Financial Officer (Nov. 2004 – Dec. 2015), Schwab Funds; Treasurer and Principal Financial Officer (Oct. 2009 – Dec. 2015), Schwab ETFs; Director (Apr. 2005 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited.
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities and Multi-Asset Strategies (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President and Chief Investment Officer – Equities and Multi-Asset Strategies (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer – Equities and Multi-Asset Strategies (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Head of the Portfolio Management Group and Vice President of Portfolio Management (May 2009 – Apr. 2011), Financial Engines, Inc. (investment management firm); Head of Quantitative Equity (July 2004 – Jan. 2009), ING Investment Management.
Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President and Chief Investment Officer – Fixed Income (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer – Fixed Income (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Managing Director, Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm).
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President (Sept. 2011 – present) and Vice President (Mar. 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present) and Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (Apr. 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk (Apr. 2011 – present), Laudus Funds; Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009)	Vice President (July 2005 – present), Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary (Oct. 2009 – present), Schwab ETFs.

¹	Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first.
²	Mr. Bettinger, Mr. de St. Paer and Mr. Martinetto are Interested Trustees. Mr. Bettinger is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc. (CSIM), the investment adviser for the trusts in the Fund Complex, is an employee and director of Charles Schwab & Co., Inc. (CS&Co), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust, and is a director of CSIM. Mr. de St. Paer is an Interested Trustee because he owns stock of CSC and is an employee and director of CSIM. Mr. Martinetto is an Interested Trustee because he owns stock of CSC and is an employee and director of CS&Co.
³	The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.

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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.

cap, capitalization See “market cap.”

Dividend Equity Spliced Index An internally calculated index, comprised of the S&P 500 Index from inception of the Schwab Dividend Equity 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 the world. The index is quoted in U.S. dollars.